2007 Minnesota Statutes

352.75 TRANSFER OF PENSION COVERAGE SAVINGS CLAUSE; INCREASE IN
EXISTING ANNUITIES AND BENEFITS.
    Subdivision 1. Existing employees. Notwithstanding any law to the contrary, as of July 1,
1978, all active employees of the Transit Operating Division of the former Metropolitan Transit
Commission and all employees on authorized leaves of absence from the Transit Operating
Division who are employed on July 1, 1978, by a labor organization which is the exclusive
bargaining agent representing employees of the Transit Operating Division shall cease to be
members of the former Metropolitan Transit Commission-Transit Operating employees retirement
fund and shall cease to have any accrual of service credit, rights, or benefits under that retirement
fund. After July 1, 1978, those employees become members of the Minnesota State Retirement
System, are considered state employees for purposes of this chapter, unless specifically excluded
by section 352.01, subdivision 2b, and shall have past service with the Transit Operating Division
of the former Metropolitan Transit Commission credited by the Minnesota State Retirement
System in accordance with section 352.01, subdivision 11, clause (10). Any employees on
authorized leaves of absence from the Transit Operating Division of the former Metropolitan
Transit Commission who become employed by the labor organization which is the exclusive
bargaining agent representing employees of the Transit Operating Division after July 1, 1978,
shall be entitled to be members of the Minnesota State Retirement System under section 352.029.
    Subd. 2. New employees. All persons first employed by the former Metropolitan Transit
Commission as employees of the Transit Operating Division on or after July 1, 1978, are members
of the Minnesota State Retirement System and are considered state employees for purposes of this
chapter unless specifically excluded under section 352.01, subdivision 2b.
    Subd. 3. Existing retired members and benefit recipients. As of July 1, 1978, the liability
for all retirement annuities, disability benefits, survivorship annuities, and survivor of deceased
active employee benefits paid or payable by the former Metropolitan Transit Commission-Transit
Operating Division employees retirement fund is transferred to the Minnesota State Retirement
System, and is no longer the liability of the former Metropolitan Transit Commission-Transit
Operating Division employees retirement fund. The required reserves for retirement annuities,
disability benefits, and optional joint and survivor annuities in effect on June 30, 1978, and
the required reserves for the increase in annuities and benefits provided under subdivision 6
must be determined using a five percent interest assumption and the applicable Minnesota State
Retirement System mortality table and shall be transferred by the Minnesota State Retirement
System to the Minnesota postretirement investment fund on July 1, 1978, but shall be considered
transferred as of June 30, 1978. The annuity or benefit amount in effect on July 1, 1978, including
the increase granted under subdivision 6, must be used for adjustments made under section
11A.18. For persons receiving benefits as survivors of deceased former retirement annuitants, the
benefits must be considered as having commenced on the date on which the retirement annuitant
began receiving the retirement annuity.
    Subd. 4. Existing deferred retirees. Any former member of the former Metropolitan Transit
Commission-Transit Operating Division employees retirement fund is entitled to a retirement
annuity from the Minnesota State Retirement System if the employee:
(1) is not an active employee of the Transit Operating Division of the former Metropolitan
Transit Commission on July 1, 1978; (2) has at least ten years of active continuous service with
the Transit Operating Division of the former Metropolitan Transit Commission as defined by the
former Metropolitan Transit Commission-Transit Operating Division employees retirement
plan document in effect on December 31, 1977; (3) has not received a refund of contributions;
(4) has not retired or begun receiving an annuity or benefit from the former Metropolitan Transit
Commission-Transit Operating Division employees retirement fund; (5) is at least 55 years
old; and (6) submits a valid application for a retirement annuity to the executive director of the
Minnesota State Retirement System.
The person is entitled to a retirement annuity in an amount equal to the normal old age
retirement allowance calculated under the former Metropolitan Transit Commission-Transit
Operating Division employees retirement fund plan document in effect on December 31, 1977,
subject to an early retirement reduction or adjustment in amount on account of retirement before
the normal retirement age specified in that former Metropolitan Transit Commission-Transit
Operating Division employees retirement fund plan document.
The deferred retirement annuity of any person to whom this subdivision applies must be
augmented. The required reserves applicable to the deferred retirement annuity, determined as
of the date the allowance begins to accrue using an appropriate mortality table and an interest
assumption of five percent, must be augmented by interest at the rate of five percent per year
compounded annually from January 1, 1978, to January 1, 1981, and three percent per year
compounded annually from January 1, 1981, to the first day of the month in which the annuity
begins to accrue. Upon the commencement of the retirement annuity, the required reserves for the
annuity must be transferred to the Minnesota postretirement investment fund in accordance with
subdivision 2 and section 352.119. On applying for a retirement annuity under this subdivision,
the person is entitled to elect a joint and survivor optional annuity under section 352.116,
subdivision 3 .
    Subd. 5. Savings clause for certain existing employees. Any person who is a member of
the former Metropolitan Transit Commission-Transit Operating Division employees retirement
fund on July 1, 1978, is entitled to retain past and prospective rights under the retirement benefit
formula, normal retirement age, and early reduced retirement age provisions of the former
Metropolitan Transit Commission-Transit Operating Division employees retirement fund plan
document in effect on July 1, 1978, in lieu of the provisions in sections 352.115; 352.116; 352.22,
subdivisions 3 to 11 ; and 356.30.
    Subd. 6. Increase in existing annuities and benefits. All persons receiving retirement
allowances or annuities, disability benefits, survivorship annuities and survivor of deceased
active employee benefits from the former Metropolitan Transit Commission-Transit Operating
Division employees retirement fund on December 31, 1977, and on July 1, 1978, are entitled to
have the allowances, annuities, or benefits increased by an amount equal to $20 per month.
Increases in payments under this subdivision must be made automatically unless the intended
recipient files written notice with the executive director of the Minnesota State Retirement System
requesting that the increase not be made. If any actuarial reduction or adjustment was applied
to the retirement allowance or annuity, disability benefit, survivorship annuity, or survivor of
deceased active employee benefit, the increase specified in this subdivision must be similarly
reduced or adjusted. Upon the death of any person receiving an annuity or benefit if the person
elected a joint and survivor optional annuity the survivor is entitled to the continued receipt of
the increase provided for under this subdivision, but the increase must be reduced or adjusted in
accordance with the optional annuity election.
History: 1978 c 538 s 8-10; 1980 c 607 art 14 s 35,45 subd 2; 1981 c 224 s 56; 1987 c 229
art 6 s 1; 1994 c 628 art 3 s 29; 1996 c 305 art 1 s 75