1998 Minnesota Statutes

     422A.23 Survivor benefits. 

    Subdivision 1.  If a contributing member dies after having 
 been in the service ten or more years, and before actual 
 retirement, as determined by the retirement board, the present 
 worth of the city's annual installments of $60 then to the 
 credit of the contributing member, shall 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 
 or, if there be no surviving spouse or surviving child or 
 children, then to a person actually dependent on and receiving 
 principal support from such member or surviving mother or 
 father, or grandchildren, 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 sentence, such 
 benefit from the accumulation 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 as 
 those terms are herein defined, 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 grandchildren, in equal shares; if there be no 
 grandchildren, to the surviving brothers and sisters of the 
 member, in equal shares; (6) if there be no surviving brothers 
 and sisters, to the surviving children of the deceased brothers 
 and sisters of the member, in equal shares; or (7) if there is 
 none of the foregoing persons who survives the member, the 
 accumulation of the city deposits shall be applied to the 
 funeral expenses of the member. 

    Subd. 2.    Short-service survivor benefit.  (a) If an 
 active member dies prior to termination of service with at least 
 18 months but less than 20 years of service credit, the 
 surviving spouse or surviving child or children is eligible to 
 receive the survivor benefit specified in paragraph (b) or (c), 
 as applicable.  Payment of a benefit for any surviving child 
 under the age of 18 years shall be made to the surviving parent, 
 or if there be none, to the legal guardian of the surviving 
 child.  For purposes of this subdivision, a surviving child is 
 an unmarried child of the deceased member under the age of 18, 
 or under the age of 22 if a full-time student at an accredited 
 school, college, or university. 

    (b) If the surviving spouse or surviving child benefit 
 commenced before July 1, 1983, the surviving spouse benefit is 
 $750 per month and the surviving child benefit is $225 per 
 month, beginning with the first monthly payment payable after 
 May 28, 1998.  The sum of surviving spouse and surviving child 
 benefits payable under this paragraph shall not exceed $900 per 
 month.  The increased cost resulting from the benefit increases 
 under this paragraph must be allocated to each employing unit 
 listed in section 422A.101, subdivisions 1a, 2, and 2a, on the 
 basis of the additional accrued liability resulting from 
 increased benefits paid to the survivors of employees from that 
 unit. 

    (c) If the surviving spouse or surviving child benefit 
 commences after June 30, 1983, the surviving spouse benefit is 
 30 percent of the member's average salary in effect over the 
 last six months of allowable service preceding the month in 
 which death occurs.  The surviving child benefit is ten percent 
 of the member's average salary in effect over the last six 
 months of allowable service preceding the month in which death 
 occurs.  The sum of surviving spouse and surviving child 
 benefits payable under this paragraph shall not exceed 50 
 percent of the member's average salary in effect over the last 
 six months of allowable service. 

    (d) Any surviving child benefit or surviving spouse benefit 
 computed under paragraph (c) and in effect for the month 
 immediately prior to May 28, 1998, is increased by 15 percent as 
 of the first payment on or after May 28, 1998. 

    (e) Surviving child benefits under this subdivision 
 terminate when the child no longer meets the definition of 
 surviving child. 

    Subd. 3. Repealed, 1983 c 286 s 26 

    Subd. 4.  Repealed, 1976 c 279 s 4 

    Subd. 5.  Benefits herein provided shall commence with the 
 first day of the month following the month in which the employee 
 dies and shall end with the last day of the month preceding the 
 month in which eligibility ceases.  Eligibility for the benefits 
 herein provided shall be determined by the retirement board and 
 its determination shall be final.  Each beneficiary or parent or 
 guardian of a dependent child or legal representative shall 
 furnish such information as the board may deem necessary to 
 determine eligibility for the benefits provided by this section, 
 and failure to furnish any required information shall be 
 sufficient grounds for the discontinuance of benefits.  If the 
 surviving spouse of the deceased member becomes entitled to a 
 retirement allowance by reason of membership in this fund, the 
 surviving spouse shall receive the retirement allowance in 
 addition to the surviving spouse's benefit to which the 
 surviving spouse is entitled.  The cost of all monthly 
 survivor's benefits provided in this section shall be an 
 obligation of the members and of the city, any of its boards, 
 departments, commissions or public corporations or other 
 applicable employing units. 

    Subd. 6.    Survivor benefit employee contribution.  The 
 retirement board shall create a reserve account for survivor's 
 benefits from which shall be paid on an actuarial basis all 
 survivor benefits due and payable.  At the end of each fiscal 
 year, as part of the annual actuarial valuation of the fund 
 prepared by the commission-retained actuary, a determination of 
 the normal cost of the benefits payable from the survivor's 
 benefit account shall be made and the board shall reduce or 
 increase the employee contribution rate of one-fourth of one 
 percent if and when it is determined based on the annual 
 actuarial valuation that the member contribution rate is in 
 excess of or is less than the amount necessary to pay for 50 
 percent of the calculated normal cost of the survivor benefits 
 provided in this section. 

    Subd. 7.    Active member survivor coverage.  If the 
 contributing member dies after having been in the service of the 
 city 20 or more years, and before the effective date of 
 retirement, as determined by the retirement board, the board 
 shall pay a monthly allowance for life to the designated 
 beneficiary of the employee.  The monthly allowance herein 
 provided for shall be the actuarial equivalent of a single life 
 service allowance specified in section 422A.15, subdivision 1, 
 which would have been payable to the employee on the date of 
 death, notwithstanding the age requirement stated in section 
 422A.15, subdivision 1.  For purposes of this section, the 
 amount of any excess contributions or voluntary additions by the 
 member shall not be included in the calculations in determining 
 the monthly allowance. 

    The survivor allowance under this subdivision shall be 
 computed and determined under a procedure specified by the 
 commission-retained actuary utilizing the appropriate mortality 
 table established by the board of trustees based on the 
 experience of the fund as recommended by the commission-retained 
 actuary and using the applicable postretirement interest rate 
 assumption specified in section 356.215, subdivision 4d. 

    Subd. 8.  The beneficiary designated by the employee shall 
 be the surviving spouse of such employee.  If there is no 
 surviving spouse, the designated beneficiary may be a dependent 
 surviving child or dependent parent of such employee as 
 dependency is defined in sections 422A.01 to 422A.25.  If the 
 beneficiary designated by the employee is not of the class of 
 persons provided for in this subdivision, or if the designated 
 beneficiary predeceases the employee, a refund shall be made as 
 provided for in section 422A.22, in lieu of a life income.  If 
 the employee does not elect to designate a beneficiary to 
 receive a life income as herein provided, the designated 
 beneficiary, if of the class of persons set forth in this 
 subdivision, may elect within 60 days after the date of death of 
 the employee to receive a life income computed and determined as 
 though the employee had retired on the date of death under the 
 option 2 plan of retirement, as provided for in sections 422A.01 
 to 422A.25, and had designated such person as beneficiary. 

    Subd. 9.  If any employee who has contributed to the 
 survivor's benefit account as herein provided dies before the 
 effective date of retirement on a service or disability pension 
 and is not survived by a beneficiary eligible to receive a 
 monthly allowance as herein provided, there shall be paid from 
 the survivor's benefit account to a beneficiary designated by 
 the employee a death benefit of $750 if death occurs prior to 
 the end of the employee's tenth year of service or of $1500 if 
 the employee had prior to death completed ten or more calendar 
 years of service.  Upon reinstatement of a former employee to 
 the service, credit for such past service or for any part 
 thereof shall be granted only upon repayment of the amount of 
 the separation refund, with interest, from the time of 
 separation. 

    Subd. 10.  If the amount of annuity payable from the 
 Minnesota postretirement investment fund to any class of 
 annuitants is adjusted pursuant to section 11A.18, the amount of 
 benefits payable from the survivor's benefit fund pursuant to 
 subdivisions 7 or 8 for that class of annuitants shall also be 
 adjusted at the same time and rate. 

    Subd. 11.    Effect of spouse remarriage.  A monthly 
 survivor benefit is not suspended, terminated, or otherwise 
 stopped due to a surviving spouse's remarriage. 

    HIST: 1973 c 133 s 23; 1973 c 770 s 15; 1974 c 75 s 1-3; 1974 
 c 76 s 13; 1974 c 232 s 1; 1976 c 279 s 1,2; 1977 c 399 s 18,19; 
 1980 c 607 art 14 s 45 subd 2; s 46; 1981 c 224 s 191; 1983 c 
 286 s 20; 1986 c 444; 1987 c 259 s 77,78; 1991 c 345 art 4 s 12; 
 1992 c 480 s 5; 1998 c 390 art 2 s 16