2007 Minnesota Statutes

CHAPTER 3A. LEGISLATORS' RETIREMENT

3A.01 DEFINITIONS.
    Subdivision 1. Purposes. Each of the terms defined in this section, for the purposes of this
chapter has the meaning ascribed.
    Subd. 1a. Actuarial equivalent. "Actuarial equivalent" means the condition of one
allowance or benefit having an equal actuarial present value to another allowance or benefit,
determined by the actuary retained under section 356.214 as of a given date at a specified age with
each actuarial present value based on the mortality table applicable for the plan and approved
under section 356.215, subdivision 18, and using the applicable preretirement or postretirement
interest rate assumption specified in section 356.215, subdivision 8.
    Subd. 1b. Average monthly salary. "Average monthly salary" means the average of the
member's highest five successive years of salary that was received as a member of the legislature
and upon which the member has made contributions under section 3A.03, subdivision 1, or
for which the member of the legislature has made payments for past service under Minnesota
Statutes 2004, section 3A.02, subdivision 2, or has made, before July 1, 1994, payments in lieu of
contributions under Minnesota Statutes 1992, section 3A.031.
    Subd. 1c. Constitutional officer. "Constitutional officer" means a person who was duly
elected, qualifies for, and serves as the governor, the lieutenant governor, the attorney general, the
secretary of state, or the state auditor of the state of Minnesota.
    Subd. 2. Dependent child. (a) "Dependent child" means any natural or adopted child of a
deceased member of the legislature or a former legislator who is under the age of 18, or who is
under the age of 22 and is a full-time student, and who, in either case, is unmarried and was
actually dependent for more than one-half of support upon the legislator for a period of at least 90
days immediately before the legislator's death.
    (b) The term also includes any child of the member of the legislature or former legislator
who was conceived during the lifetime of, and who was born after the death of, the member
or former legislator.
    Subd. 3.[Repealed, 2006 c 271 art 10 s 33]
    Subd. 4.[Repealed, 2006 c 271 art 10 s 33]
    Subd. 5.[Repealed, 1971 c 928 s 11]
    Subd. 6. Director. "Director" means the executive director of the Minnesota State Retirement
System who was appointed under section 352.03, subdivision 5.
    Subd. 6a.[Repealed, 2006 c 271 art 10 s 33]
    Subd. 6b. Former legislator. "Former legislator" means a legislator who has ceased to be a
member of the legislature for any reason, including, but not limited to, the expiration of the term
for which a member of the legislature was elected or the death of the member.
    Subd. 6c. Member of the legislature. "Member of the legislature" means a person who was
a member of the house of representatives or of the senate of the state of Minnesota who has
subscribed to the oath of office after July 1, 1965, and who was first elected to a legislative
office before July 1, 1997, and retained coverage by the plan under Laws 1997, chapter 233,
article 2, section 15.
    Subd. 7.[Repealed, 2006 c 271 art 10 s 33]
    Subd. 8. Normal retirement age. "Normal retirement age" means the age of 62 years.
    Subd. 9. Retirement. "Retirement" means the period of time after which a former legislator
is entitled to a retirement allowance.
    Subd. 10. Salary. (a) "Salary" means the regular compensation payable under law to a
member of the legislature and paid to the person for service as a legislator.
    (b) The term includes the monthly compensation paid to the member of the legislature and
the per diem payments paid during a regular or special session to the member of the legislature.
    (c) The term does not include per diem payments paid to a member of the legislature other
than during the regular or special session; additional compensation attributable to a leadership
position under section 3.099, subdivision 3; living expense payments under section 3.101; and
special session living expense payments under section 3.103.
History: 1965 c 896 s 1; 1974 c 445 s 1; 1975 c 368 s 1,2; 1978 c 796 s 1,2; 1981 c 224 s
2,3,274; 1986 c 444; 1989 c 319 art 11 s 13; art 16 s 1,2; 1995 c 186 s 1; 2006 c 271 art 10 s 1-11

3A.011 ADMINISTRATION OF PLAN.
    The executive director and the board of directors of the Minnesota State Retirement System
shall administer the legislators retirement plan in accordance with this chapter and chapter 356A.
History: 1989 c 319 art 8 s 1; 2006 c 271 art 10 s 12

3A.02 RETIREMENT ALLOWANCE.
    Subdivision 1. Qualifications. (a) A former legislator is entitled, upon written application to
the director, to receive a retirement allowance monthly, if the person:
    (1) has either served at least six full years, without regard to the application of section
3A.10, subdivision 2, or has served during all or part of four regular sessions as a member of the
legislature, which service need not be continuous;
    (2) has attained the normal retirement age;
    (3) has retired as a member of the legislature; and
    (4) has made all contributions provided for in section 3A.03, has made payments for past
service under subdivision 2, or has made payments in lieu of contributions under Minnesota
Statutes 1992, section 3A.031, before July 1, 1994.
    (b) Unless the former legislator has legislative service before January 1, 1979, the retirement
allowance is an amount equal to 2-1/2 percent per year of service of that member's average
monthly salary and adjusted for that person on an actuarial equivalent basis to reflect the change
in the postretirement interest rate actuarial assumption under section 356.215, subdivision 8, from
five percent to six percent. The adjustment must be calculated by or, alternatively, the adjustment
procedure must be specified by, the actuary retained under section 356.214. The purpose of this
adjustment is to ensure that the total amount of benefits that the actuary predicts an individual
member will receive over the member's lifetime under this paragraph will be the same as the total
amount of benefits the actuary predicts the individual member would receive over the member's
lifetime under the law in effect before enactment of this paragraph. If the former legislator has
legislative service before January 1, 1979, the person's benefit must include the additional benefit
amount in effect on January 1, 1979, and adjusted as otherwise provided in this paragraph.
    (c) The retirement allowance accrues following the receipt by the director of a retirement
application on a form prescribed by the director, but not before the normal retirement age, except
as specified in subdivision 1b. The annuity is payable for the remainder of the former legislator's
life, if the former legislator is not serving as a member of the legislature or as a constitutional
officer as defined in section 3A.01, subdivision 1c. The annuity does not begin to accrue before
the person's retirement as a legislator. No annuity payment may be made retroactive for more than
180 days before the date that the annuity application is filed with the director.
    (d) Any member who has served during all or part of four regular sessions is considered to
have served eight years as a member of the legislature.
    (e) The retirement allowance ceases with the last payment that accrued to the retired
legislator during the retired legislator's lifetime, except that the surviving spouse, if any, is entitled
to receive the retirement allowance of the retired legislator for the calendar month in which
the retired legislator died.
    Subd. 1a.[Repealed, 1973 c 653 s 47]
    Subd. 1b. Reduced retirement allowance. (a) Upon separation from service after the
beginning of the 1981 legislative session, a former member of the legislature who has attained the
age set by the board of directors of the Minnesota State Retirement System and who is otherwise
qualified under subdivision 1 is entitled, upon making written application on a form prescribed by
the director, to a reduced retirement allowance. The reduced retirement allowance is an amount
equal to the retirement allowance specified in subdivision 1, paragraph (b), that is reduced so that
the reduced allowance is the actuarial equivalent of the allowance that would be payable if the
former member of the legislature deferred receipt of the allowance and the allowance amount was
augmented at an annual rate of three percent compounded annually from the date the allowance
begins to accrue until age 62.
    (b) The age set by the board of directors under paragraph (a) cannot be an earlier age than
the early retirement age under section 352.116, subdivision 1a.
    (c) If there is an actuarial cost to the plan of resetting the early retirement age under
paragraph (a), the retired legislator is required to pay an additional amount to cover the full
actuarial value. The additional amount must be paid in a lump sum within 30 days of the
certification of the amount by the executive director.
    (d) The executive director of the Minnesota State Retirement System shall report to the
Legislative Commission on Pensions and Retirement on the utilization of this provision annually
on or before September 1.
    Subd. 2.[Repealed, 2006 c 271 art 10 s 33]
    Subd. 3. Appropriation. The amounts required for payment of retirement allowances
provided by this section are appropriated annually to the director from the participation of the
legislators retirement plan in the Minnesota postretirement investment fund. The retirement
allowance must be paid monthly to the recipients entitled to those retirement allowances.
    Subd. 4. Deferred annuities augmentation. (a) The deferred retirement allowance of any
former legislator must be augmented as provided herein.
    (b) The required reserves applicable to the deferred retirement allowance, determined as
of the date the benefit begins to accrue using an appropriate mortality table and an interest
assumption of six percent, must be augmented from the first of the month following the
termination of active service, or July 1, 1973, whichever is later, to the first day of the month in
which the allowance begins to accrue, at the following annually compounded rate or rates:
(1) five percent until January 1, 1981;
(2) three percent from January 1, 1981, or from the first day of the month following the
termination of active service, whichever is later, until January 1 of the year in which the former
legislator attains age 55; and
(3) five percent from the period end date under clause (2) to the effective date of retirement.
    Subd. 5. Optional annuities. (a) The board of directors shall establish an optional retirement
annuity in the form of a joint and survivor annuity and an optional retirement annuity in the form
of a period certain and life thereafter. Except as provided in paragraph (b), these optional annuity
forms must be actuarially equivalent to the normal allowance computed under this section, plus
the actuarial value of any surviving spouse benefit otherwise potentially payable at the time of
retirement under section 3A.04, subdivision 1. An individual selecting an optional annuity under
this subdivision and the person's spouse waive any rights to surviving spouse benefits under
section 3A.04, subdivision 1.
    (b) If a retired legislator selects the joint and survivor annuity option, the retired legislator
must receive a normal single-life allowance if the designated optional annuity beneficiary dies
before the retired legislator and no reduction may be made in the annuity to provide for restoration
of the normal single-life allowance in the event of the death of the designated optional annuity
beneficiary.
    (c) The surviving spouse of a legislator who has attained at least age 55 and who dies while a
member of the legislature may elect an optional joint and survivor annuity under paragraph (a), in
lieu of surviving spouse benefits under section 3A.04, subdivision 1.
    (d) The surviving spouse of a deceased former legislator may elect an optional joint and
survivor annuity under paragraph (a) in lieu of surviving spouse benefits under section 3A.04,
subdivision 1 , on or after the date the former legislator would have reached age 55.
History: 1965 c 896 s 2; 1967 c 877 s 1,2; 1969 c 155 s 1; 1969 c 399 s 1; 1969 c 1115 s
1; 1971 c 928 s 1,2; 1973 c 653 s 1-3; 1974 c 445 s 2-4; 1975 c 368 s 3-5; 1977 c 35 s 12;
1978 c 796 s 3-6; 1980 c 607 art 14 s 45 subd 2; 1981 c 224 s 4; 1986 c 444; 1989 c 319 art
16 s 3-5; 1993 c 307 art 1 s 1; art 2 s 1; 1994 c 528 art 1 s 1; 1995 c 186 s 2; 1995 c 262 art 8
s 1; 1997 c 233 art 1 s 3,4; 1999 c 222 art 9 s 1; 2002 c 392 art 11 s 52; 2006 c 271 art 10 s
13-17; art 12 s 1; 2007 c 134 art 2 s 1; art 11 s 2

3A.021 OPTIONAL DIVISION OF RETIREMENT ALLOWANCE.
    Subdivision 1. Election of division. Notwithstanding section 518.58, subdivision 4,
paragraph (a), clause (5), a former legislator or the former spouse of a former legislator, if a
portion of the former legislator's retirement allowance is awarded to the former spouse under a
marriage dissolution property division decree by a court of competent jurisdiction, may elect to
have payment of the portion of the legislator's retirement allowance designated in the decree as
payable to the former spouse beginning as of the first day of the month following the date on
which the former legislator attains the age of 62, even if the former legislator has not applied for
the receipt of retirement allowance as of that date. In all other respects, the optional retirement
allowance division is governed by section 518.58, subdivision 4.
    Subd. 2. Calculation of subsequent portion of the retirement allowance. Upon the
eventual application for a retirement allowance under this chapter by a former legislator who
elected or was affected by the election of a benefit under subdivision 1, the subsequent retirement
allowance must be adjusted to be the actuarial equivalent of the balance of the present value of the
retirement allowance of the former legislator upon the effective date of the application remaining
after a reduction equal to the present value of the partial benefit previously paid and subsequently
payable to the former spouse, as calculated by the actuary retained under section 356.214 or as
calculated under a procedure specified by the actuary. The retirement allowance present value
calculations must include the effect of section 356.30.
    Subd. 3. No optional annuity form. Section 3A.02, subdivision 5, does not apply to a partial
retirement allowance payable under subdivision 1.
History: 2007 c 134 art 11 s 3

3A.03 CONTRIBUTIONS.
    Subdivision 1. Percentage. (a) Every member of the legislature shall contribute nine percent
of total salary.
    (b) The contribution must be made by payroll deduction and must be paid into the state
treasury and deposited in the general fund.
    (c) The director must record the periodic contributions of each member of the legislature and
must credit each contribution to the member's account.
    Subd. 2. Refund. (a) A former member who has made contributions under subdivision 1 and
who is no longer a member of the legislature is entitled to receive, upon written application to
the executive director on a form prescribed by the executive director, a refund from the general
fund of all contributions credited to the member's account with interest computed as provided in
section 352.22, subdivision 2.
    (b) The refund of contributions as provided in paragraph (a) terminates all rights of a former
member of the legislature and the survivors of the former member under this chapter.
    (c) If the former member of the legislature again becomes a member of the legislature after
having taken a refund as provided in paragraph (a), the member is a member of the unclassified
employees retirement program of the Minnesota State Retirement System.
    (d) However, the member may reinstate the rights and credit for service previously forfeited
under this chapter if the member repays all refunds taken, plus interest at an annual rate of 8.5
percent compounded annually from the date on which the refund was taken to the date on which
the refund is repaid.
    (e) No person may be required to apply for or to accept a refund.
History: 1965 c 896 s 3; 1969 c 399 s 1; 1971 c 928 s 3; 1973 c 653 s 4; 1974 c 445 s 5,6;
1975 c 368 s 6; 1978 c 796 s 7; 1980 c 614 s 37; 1981 c 224 s 274; 1983 c 286 s 1; 1984 c 564 s
3; 1986 c 444; 1990 c 570 art 12 s 1; 1992 c 598 art 1 s 1; 1Sp2001 c 10 art 3 s 1; 2004 c 267
art 9 s 1; 2006 c 271 art 10 s 18,19

3A.031 [Repealed, 1989 c 319 art 16 s 8]

3A.04 SURVIVOR BENEFIT.
    Subdivision 1. Surviving spouse. (a) Upon the death of a member of the legislature while
serving as a member, or upon the death of a former member of the legislature with at least six
full years of service or service in all or part of four regular legislative sessions, if section 3A.02,
subdivision 5, paragraph (c), does not apply, the surviving spouse is entitled to a survivor benefit.
    (b) The surviving spouse benefit is one-half of the retirement allowance of the member of the
legislature computed as though the member were at least normal retirement age on the date of
death and based upon the member's allowable service or upon eight years, whichever is greater.
The augmentation provided in section 3A.02, subdivision 4, if applicable, must be applied for the
period up to, and including, the month of death.
    (c) Upon the death of a former legislator receiving a retirement allowance, the surviving
spouse is entitled to one-half of the amount of the retirement allowance being paid to the legislator.
    (d) The surviving spouse benefit is payable for the lifetime of the surviving spouse.
    Subd. 1a.[Repealed, 2006 c 271 art 10 s 33]
    Subd. 2. Dependent children. (a) Upon the death of a member of the legislature while
serving as a member, or upon the death of a former member of the legislature who has rendered
at least six full years of service or service in all or part of four regular legislative sessions and
who was not receiving a retirement allowance, each dependent child of the member or former
legislator is entitled to receive a survivor benefit in the following amount:
    (1) for the first dependent child, a monthly benefit equal to 25 percent of the monthly
retirement allowance of the member of the legislature or the former legislator computed as though
the member or the former legislator had attained at least the normal retirement age on the date
of death and based upon the average monthly salary as of the date of death or as of the date of
termination, whichever applies, and the member's allowable service or eight years, whichever
is greater;
    (2) for each additional dependent child, a monthly benefit equal to 12-1/2 percent of the
monthly retirement allowance of the member or the former legislator computed as provided in
clause (1); and
    (3) the total amount paid to the surviving spouse and to the dependent child or children may
not exceed, in any one month, 100 percent of the monthly retirement allowance of the member
or of the former legislator computed as provided in clause (1).
    (b) The augmentation provided in section 3A.02, subdivision 4, if applicable, applies from
the first day of the month next following the date of the termination of the person from service as
a member of the legislature to the month of the death of the person.
    (c) Upon the death of a former legislator who was receiving a retirement allowance, a
surviving dependent child is entitled to the applicable percentage specified in paragraph (a),
clause (1) or (2), whichever applies, of the amount of the allowance which was paid to the former
legislator for the month immediately before the date of death of the former legislator.
    (d) The payments for dependent children must be made to the surviving spouse or to the
guardian of the estate of the dependent children, if there is one.
    Subd. 3. Payment. The surviving spouse and dependent child or children survivor benefits
payable under this section are payable by the director monthly in the same manner as retirement
allowances are authorized to be paid by this chapter.
    Subd. 4. Death refunds. (a) Upon the death of a member of the legislature or of a former
legislator who was not receiving a retirement allowance without leaving either a surviving spouse
or a dependent child or dependent children, the last designated beneficiary named on a form that
was filed with the director before the death of the legislator, or if no designation is filed, the estate
of the member or the former legislator, upon application, is entitled to a refund.
    (b) The refund is the amount of contributions credited to the person's account plus interest as
provided in section 3A.03, subdivision 2, paragraph (a).
    Subd. 5. Appropriation. The survivor benefits and the death refunds authorized by this
section are appropriated to the director from the general fund when they are due and payable.
History: 1965 c 896 s 4; 1967 c 877 s 3,4; 1969 c 399 s 1; 1969 c 1115 s 2,3; 1971 c 928 s
4-6; 1973 c 653 s 5,6; 1974 c 445 s 7,8; 1975 c 368 s 7,8; 1977 c 429 s 1-3; 1978 c 796 s 8,9;
1980 c 614 s 38,39; 1981 c 224 s 5-8,274; 1986 c 444; 1989 c 319 art 11 s 13; 1991 c 269 art 2 s
1; 1996 c 438 art 1 s 1; 2006 c 271 art 10 s 20-24; art 12 s 2

3A.05 APPLICATION FOR SURVIVOR BENEFIT.
    (a) Applications for survivor benefits under section 3A.04 must be filed with the director by
the surviving spouse and dependent child or children entitled to benefits under section 3A.04, or
by the guardian of the estate, if there is one, of the dependent child or children.
    (b) Survivor benefits accrue as of the first day of the month following the death of the
member of the legislature or former legislator and payments commence as of the first of the
month next following the filing of the application, and are retroactive to the date the benefit
accrues or the first of the month occurring 12 months before the month in which the application
is filed with the director, whichever is later.
History: 1965 c 896 s 5; 1971 c 928 s 7; 1974 c 445 s 9; 1975 c 368 s 9; 1981 c 224 s 9;
2006 c 271 art 10 s 25; 2007 c 134 art 1 s 1

3A.06 [Repealed, 1993 c 307 art 7 s 1]

3A.07 APPLICATION.
    (a) Except as provided in paragraph (b), this chapter applies to members of the legislature in
service after July 1, 1965, who otherwise meet the requirements of this chapter.
    (b) Members of the legislature who were elected for the first time after June 30, 1997, or
members of the legislature who were elected before July 1, 1997, and who, after July 1, 1998,
elect not to be members of the plan established by this chapter are covered by the unclassified
employees retirement program governed by chapter 352D.
    (c) The post-July 1, 1998, coverage election under paragraph (b) is irrevocable and must be
made on a form prescribed by the director. The second chance referendum election under Laws
2002, chapter 392, article 15, also is irrevocable.
History: 1965 c 896 s 7; 1981 c 224 s 274; 1997 c 233 art 2 s 1; 2006 c 271 art 10 s 26

3A.08 [Repealed, 1979 c 303 art 3 s 41]

3A.09 [Repealed, 2006 c 271 art 10 s 33]

3A.10 ONE TERM OF SERVICE BEING A CERTAIN TIME.
    Subdivision 1. Service credit for legislative term. (a) In the case of a member of the
house of representatives, one full term of office must be considered two full years of service,
notwithstanding the fact that the oath of office was taken on different days each biennium.
    (b) In the case of a member of the senate, one full term of office must be considered four full
years of service, notwithstanding the fact that the oath of office was taken on different days at
the start of each term.
    (c) For purposes of this chapter, a legislative term must be deemed to commence on January
1 and to end on December 31.
    Subd. 2.[Repealed, 1995 c 262 art 1 s 26]
History: 1965 c 896 s 10; 1967 c 877 s 6; 1975 c 368 s 10; 1986 c 444; 2006 c 271 art 10 s 27

3A.11 [Repealed, 1Sp2003 c 1 art 2 s 136]

3A.115 RETIREMENT ALLOWANCE APPROPRIATION; ADJUSTMENT.
The amount necessary to fund the retirement allowance granted under this chapter to a
former legislator upon retirement is appropriated from the general fund to the director to pay
pension obligations due to the retiree. Retirement allowances payable to retired legislators and
their survivors under this chapter must be adjusted in the same manner, at the same times, and in
the same amounts as are benefits payable from the Minnesota postretirement investment fund to
retirees of a participating public pension fund.
History: 1Sp2003 c 1 art 2 s 3

3A.12 COVERAGE BY MORE THAN ONE RETIREMENT SYSTEM OR
ASSOCIATION.
    Subdivision 1. Entitlement to annuity. (a) Any legislator who has been a member of a
retirement plan listed in paragraph (b) is entitled, when otherwise qualified, to a retirement
allowance or annuity from each plan if the total allowable service in all plans or in any two of
these plans totals ten or more years.
    (b) This section applies to any retirement plan or program administered by the Minnesota
State Retirement System, or any retirement plan administered by the Public Employees
Retirement Association, including the Public Employees Retirement Association police and fire
fund, or the Teachers Retirement Association, or the Minneapolis employees retirement plan, or
the State Patrol retirement plan, or any other public employee retirement system in the state of
Minnesota having a like provision.
    (c) This section does not apply to other retirement plans providing benefits for police
or firefighters.
    (d) No portion of the allowable service upon which the retirement annuity from one plan is
based is again used in the computation for benefits from another plan. The annuity from each plan
must be determined by the appropriate provisions of the law, except that the requirement that
a person must have a minimum number of years of allowable service in the respective system
or association does not apply for the purposes of this section if the combined service in two or
more of these plans equals ten or more years. The augmentation of deferred annuities provided in
section 3A.02, subdivision 4, applies to the annuities accruing under this section.
    Subd. 2. Refund repayment. A former legislator who has received a refund as provided
in section 3A.03, subdivision 2, who is a currently contributing member of a retirement plan
specified in subdivision 1, paragraph (b), may repay the refund as provided in section 3A.03,
subdivision 2 . A member of the legislature who has received a refund from any of the retirement
plans specified in subdivision 1 may repay the refund to the respective plan under such terms and
conditions consistent with the law governing the retirement plan if the law governing the plan
permits the repayment of refunds. If the total amount to be repaid, including principal and interest
exceeds $2,000, repayment maybe made in three equal installments over a period of 18 months,
with the interest accrued during the period of the repayment added to the final installment.
History: 1975 c 368 s 11; 1977 c 429 s 63; 1981 c 37 s 2; 1981 c 224 s 13; 1981 c 298 s 11;
1986 c 444; 2006 c 271 art 10 s 28

3A.13 EXEMPTION FROM PROCESS AND TAXATION; HEALTH PREMIUM
DEDUCTION.
(a) The provisions of section 356.401 apply to the legislators retirement plan.
(b) The executive director of the Minnesota State Retirement System must, at the request of
a retired legislator who is enrolled in a health insurance plan covering state employees, deduct
the person's health insurance premiums from the person's annuity and transfer the amount of the
premium to a health insurance carrier covering state employees.
History: 1993 c 307 art 1 s 2; 1998 c 390 art 2 s 1; 1Sp2005 c 8 art 10 s 1

3A.15 COORDINATED PROGRAM OF LEGISLATORS RETIREMENT PLAN.
The coordinated program of the legislators retirement plan is created. The provisions of
sections 3A.01 to 3A.13 apply to the coordinated program.
History: 2002 c 392 art 15 s 1