Subdivision 1. Entitlement, application.
A person who ceases to render teaching service
in any school or institution to which the provisions of this chapter apply is entitled to a refund
provided in subdivision 2, or a deferred retirement annuity under section
354.55, subdivision 11
An application for a refund must not be made sooner than 30 days after termination of teaching
service if the applicant has not again become a teacher. This payment must be made within 45
days after the receipt of an application for a refund or upon the receipt of member reporting data
354.52, subdivision 4a
, and payroll cycle data under section
, whichever is later.
Subd. 2. Calculation.
Except as provided in section
354.44, subdivision 1
, any person who
ceases to be a member by reason of termination of teaching service, shall receive a refund in an
amount equal to the accumulated deductions credited to the account as of June 30, 1957, and
after July 1, 1957, the accumulated deductions with interest at the rate of six percent per annum
compounded annually. For the purpose of this subdivision, interest shall be computed on fiscal
year end balances to the first day of the month in which the refund is issued.
Subd. 3. Refund in certain instances.
Any person not covered by the formula program
who has attained normal retirement age with less than the minimum service required for an
annuity and who ceases to be a member because of termination of teaching service is entitled
upon application to a refund in an amount equal to the person's accumulated deductions plus
interest at the rates used to compute annuities under section
354.44, subdivision 2
in lieu of a
proportionate annuity pursuant to section
. If a person who has attained normal retirement
age is eligible for an annuity or is covered by the formula program, the refund is an amount equal
to the accumulated deductions credited to the person's account as of June 30, 1957, and after July
1, 1957, the accumulated deductions plus interest at the rate of six percent compounded annually.
For the purpose of this subdivision, interest must be computed on fiscal year end balances to the
first day of the month in which the refund is issued.
Subd. 4. Termination of membership.
Membership in the retirement association of any
person shall terminate under the following conditions: (1) If a person takes a refundment pursuant
to this section; (2) When a person's retirement annuity first begins to accrue as provided in
354.44, subdivisions 1 and 4
; (3) Upon the person's ceasing to be a "teacher" whether by
resignation, dismissal, or termination of temporary or provisional employment for the purpose
of determining eligibility for disability or survivorship benefits as provided in sections
354.46, subdivision 1
Subd. 5.[Repealed, 2007 c 134 art 2 s 50
History: Ex1957 c 16 s 11; Ex1959 c 50 s 16,17; Ex1967 c 6 s 1-3; 1969 c 485 s 24; 1971
c 40 s 20-22; 1973 c 270 s 11; 1974 c 289 s 36-38; 1975 c 306 s 22; 1977 c 67 s 9; 1977 c 97
s 3; 1979 c 40 s 7; 1984 c 564 s 36,37; 1Sp1985 c 7 s 22; 1986 c 444; 1987 c 372 art 9 s 27;
1989 c 319 art 13 s 67,68; 1990 c 570 art 12 s 37,38; 1991 c 340 s 26; 1994 c 528 art 3 s 24;
2000 c 461 art 3 s 38