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Office of the Revisor of Statutes

422A.16 RETIREMENT ALLOWANCE; DEFERRED COMPENSATION.
    Subdivision 1. Contribution. Any member of the contributing class who becomes
permanently separated from the service of the city after three or more years of service to the
city may, by an instrument in writing filed with the retirement board within 30 days after such
separation becomes permanent, elect to allow the member's contributions to the fund to the date
of separation to remain on deposit in the fund.
    Subd. 2. Deferred defined contribution annuity. A person who is a member of the
contributing class on April 28, 1973, and who makes the election provided for in this subdivision
and in subdivision 1, may, upon attaining the age of 55 years, but before attaining the age of 65
years, or someone acting in the member's behalf, may make application to receive the retirement
allowance provided for in section 422A.15, subdivision 3, or an optional retirement allowance
in the manner provided for by section 422A.17. The retirement allowance shall be the actuarial
equivalent of the city's contribution and the member's deposit, as they were on the date the
separation becomes permanent, plus interest, as provided for in section 422A.12.
The retirement allowance provided under this subdivision or any optional annuity form of
the retirement allowance shall be computed and determined under a procedure specified by the
actuary retained under section 356.214 utilizing the appropriate mortality table established by the
board of trustees based on the experience of the fund as recommended by the actuary retained
under section 356.214 and using the applicable postretirement interest rate assumption specified
in section 356.215, subdivision 8.
    Subd. 3. Payments to beneficiaries. If such contributing member dies without having made
the election provided for herein, the net accumulated amount of deductions from the member's
salary, pay or compensation plus interest to the member's credit on date of death must be paid to
such person, or persons, as the member shall have nominated by written designation filed with
the retirement board, in such form as the retirement board shall require. If the employee fails
to make a designation, or if the person or persons designated by the employee is not living to
receive payment, the net accumulated amount of deductions from the employee's salary, pay, or
compensation, plus interest to the credit of such employee on date of death must be paid to the
employee's estate. The net accumulated city deposits must be paid to a beneficiary designated
by such contributing member in such form as the retirement board shall require, who shall be
the surviving spouse, or surviving child, or children of such member. If there is no surviving
spouse, or surviving child or children, deposits must be paid to a person actually dependent on
and receiving principal support from such member or surviving mother or father, or surviving
brother or sister, or surviving children of the deceased brother or sister of such member.
If the beneficiary designated by the member is not one of the class of persons named in
the preceding paragraph, such benefit from the accumulations of city deposits shall be paid in
the following order: (1) to the surviving spouse, the whole thereof; (2) if there be no surviving
spouse, to the surviving children, share and share alike; (3) if there be no surviving spouse or
child, or children, to the dependent or dependents of the member, share and share alike; (4) if
there be no surviving spouse, child, or children, or dependents, to the surviving mother and father,
share and share alike; (5) if there be no surviving mother and father, to the surviving brothers and
sisters of the member, in equal shares; (6) and if there be no surviving brothers and sisters, to
the surviving children of the deceased brothers and sisters of the member, in equal shares; (7)
and if there be no person named in this paragraph who survives the member, the accumulation
of city deposits must be canceled.
    Subd. 3a.[Repealed, 1999 c 222 art 17 s 9]
    Subd. 4. Retirement allowance. A contributing member may, after electing to receive a
retirement allowance as provided herein, make application to withdraw the member's deposit
before reaching the age of 60 years, at which time that portion contributed by the city shall be
canceled.
    Subd. 5. Withdrawal before retirement. If such deposit is withdrawn before retirement, the
retirement rights shall be forfeited unless such employee returns to the service of the city and again
becomes a contributing member to the fund and redeposits the amount withdrawn, plus six percent
compound interest from date of withdrawal to date of reinstatement to the service of the city.
    Subd. 6. Disability allowance. If a contributing member, after becoming permanently
separated from the service of the city and after electing to receive a retirement allowance as
provided herein, becomes totally and permanently disabled for any cause before reaching the age
of 60 years, the member shall be entitled to receive such disability allowance upon application to
the retirement board and certified by the medical board provided in this chapter. Such disability
allowance shall be the actuarial equivalent of the total credit to the member's account on the date
application for such retirement allowance is made.
    Subd. 7. Election for funds to remain on deposit. Any member of the contributing class
who becomes permanently separated from the service of the city after ten or more years of service
for such city, and who is under the age of 60 years, may, by an instrument in writing, filed with
the retirement board within 30 days after such separation becomes permanent, elect to allow
the member's contributions to such fund to the date of separation to remain on deposit in such
fund, and in such event the member shall be entitled to receive a retirement allowance at age 60
or later, but before age 65, provided the member, or someone acting in the member's behalf if
the member be incompetent, make written application for the retirement allowance provided for
in section 422A.15, subdivision 1, in the same manner provided for in section 422A.17. The
provisions of subdivisions 3, 4, 5 and 6 shall also apply to any member qualifying for benefits
under this subdivision.
    Subd. 8. Service in more than one fund. Any person who was a member of the Minneapolis
Employees Retirement Fund and also a member of a plan administered by the director of the
Minnesota State Retirement System having a like provision or a member of the Public Employees
Retirement Association or the Teachers Retirement Association, or any other public employee
retirement system in the state of Minnesota having a like provision but excluding all other funds
providing benefits for police officers or firefighters shall be entitled when qualified to an annuity
from each fund if the person's total allowable service in any two or more of these funds totals
ten or more years, provided that no portion of the allowable service upon which the retirement
annuity from one fund is based is again used in the computation for benefits from another fund
and provided further that any refundment received from the Minneapolis Employees Retirement
Fund has been repaid to that fund. The annuity from each fund shall be determined by the
appropriate provisions of that fund except the provision requiring at least ten years allowable
service in the respective system or association shall not apply for the purposes of this section
provided the combined service in two or more of these funds equal ten or more years.
    Subd. 9. Incompetency or death of member. Any member of the contributing class who
becomes permanently separated from the service of the city under subdivision 8, may, by an
instrument in writing, filed with the municipal employees retirement board within 30 days after
the separation becomes permanent, elect to allow the member contributions to the fund to the date
of separation to remain on deposit in the fund, and in the event the member is entitled to receive a
retirement allowance at age 65, provided the member, or someone acting in the member's behalf if
the member be incompetent, must make a written application for the retirement allowance in the
same manner provided for in section 422A.17 and in accordance with the provisions of section
422A.15, subdivision 1, except for determining average salary.
If the contributing member dies before reaching the age of 65 years, or having attained the
age of 65 years without having made the election provided for herein, the net accumulated amount
of deductions from the member's salary, pay or compensation, plus interest, to the member's
credit on date of death is payable to the person or persons as have been nominated by written
designation filed with the retirement board, in the form that the retirement board requires.
If the employee fails to make a designation, or if the person or persons designated by the
employee predeceases the employee, the net accumulated credit to the employee's account on date
of death is payable to the employee's estate.
The provisions of subdivisions 4, 5, and 6 also apply to any member qualifying for benefits
under this subdivision, except for purposes of this subdivision the age referred to in subdivision 4
is 65 years.
    Subd. 10. Deferred allowance augmentation. Deferred allowances granted under this
section shall be calculated as of the date of separation and shall be increased by the interest rate of
five percent per year until January 1, 1981, and thereafter by the interest rate of three percent per
year, compounded annually.
History: 1973 c 133 s 16; 1973 c 770 s 7-11; 1974 c 76 s 10,11; 1975 c 152 s 1; 1977 c 399 s
16; 1977 c 429 s 63; 1978 c 796 s 45; 1980 c 607 art 16 s 17 subd 2; 1981 c 224 s 189; 1981 c
298 s 11; 1986 c 444; 1987 c 259 s 73-75; 1991 c 206 s 7,8; 2002 c 392 art 11 s 52; 1Sp2005 c 8
art 1 s 27; art 10 s 80; 2006 c 271 art 3 s 47