2001 Minnesota Statutes

     352B.11 Retirees. 

    Subdivision 1.    Refund of payments.  A member who has 
 not received other benefits under this chapter is entitled to a 
 refund of payments made by salary deduction, plus interest, if 
 the member is separated, either voluntarily or involuntarily, 
 from state service that entitled the member to membership.  In 
 the event of the member's death, if there are no survivor 
 benefits payable under this chapter, a refund is payable to the 
 last designated beneficiary on a form filed with the director 
 before death, or if no designation is filed, the refund is 
 payable to the member's estate.  Interest must be computed at 
 the rate of six percent a year, compounded annually.  To receive 
 a refund, application must be made on a form prescribed by the 
 executive director. 

    Subd. 2.    Death; payment to spouse and children.  If a 
 member serving actively as a member, or a member or former 
 member receiving the disability benefit before attaining age 65 
 or reaching the five-year anniversary of the effective date of 
 the disability benefit, whichever is later, provided by section 
 352B.10, subdivisions 1 and 2, dies from any cause before 
 attaining age 65 or reaching the five-year anniversary of the 
 effective date of the disability benefit, whichever is later, 
 the surviving spouse and dependent children are entitled to 
 benefit payments as follows: 

    (a) A member with at least three years of allowable service 
 is deemed to have elected a 100 percent joint and survivor 
 annuity payable to a surviving spouse only on or after the date 
 the member or former member became or would have become 55. 

    (b) The surviving spouse of a member who had credit for 
 less than three years of service shall receive, for life, a 
 monthly annuity equal to 50 percent of that part of the average 
 monthly salary of the member from which deductions were made for 
 retirement.  

    (c) The surviving spouse of a member who had credit for at 
 least three years service and who died after becoming 55 years 
 old, may elect to receive a 100 percent joint and survivor 
 annuity, for life, notwithstanding a subsequent remarriage, in 
 lieu of the annuity prescribed in paragraph (b). 

    (d) The surviving spouse of any member who had credit for 
 three years or more and who was not 55 years old at death, shall 
 receive the benefit equal to 50 percent of the average monthly 
 salary as described in clause (b) until the deceased member 
 would have become 55 years old, and beginning the first of the 
 month following that date, may elect to receive the 100 percent 
 joint and survivor annuity.  

    (e) Each dependent child shall receive a monthly annuity 
 equal to ten percent of that part of the average monthly salary 
 of the former member from which deductions were made for 
 retirement.  A dependent child over 18 and under 23 years of age 
 also may receive the monthly benefit provided in this section, 
 if the child is continuously attending an accredited school as a 
 full-time student during the normal school year as determined by 
 the director.  If the child does not continuously attend school 
 but separates from full-time attendance during any part of a 
 school year, the annuity shall cease at the end of the month of 
 separation.  In addition, a payment of $20 per month shall be 
 prorated equally to surviving dependent children when the former 
 member is survived by one or more dependent children.  Payments 
 for the benefit of any qualified dependent child must be made to 
 the surviving spouse, or if there is none, to the legal guardian 
 of the child.  The maximum monthly benefit for any one family 
 must not be less than 50 nor exceed 70 percent of the average 
 monthly salary for any number of children. 

    (f) If the member dies under circumstances that entitle the 
 surviving spouse and dependent children to receive benefits 
 under the workers' compensation law, the workers' compensation 
 benefits received by them must not be deducted from the benefits 
 payable under this section. 

    (g) The surviving spouse of a deceased former member who 
 had credit for three or more years of allowable service, but not 
 the spouse of a former member receiving a disability benefit 
 under section 352B.10, subdivision 2, is entitled to receive the 
 100 percent joint and survivor annuity at the time the deceased 
 member would have become 55 years old.  If a former member dies 
 who does not qualify for other benefits under this chapter, the 
 surviving spouse or, if none, the children or heirs are entitled 
 to a refund of the accumulated deductions left in the fund plus 
 interest at the rate of six percent per year compounded annually.

    Subd. 2a.    Applications for survivor benefits.  An 
 application for benefits under this section must be filed in the 
 office of the system in a form and manner prescribed by the 
 executive director.  The benefit shall begin to accrue the day 
 following the date of death but shall not be retroactive for 
 more than six months before the date the application is filed.  

    Subd. 3.    Refund; effect.  When any member or former 
 member accepts a refund, all existing service credits and all 
 rights and benefits to which the member or former member was 
 entitled before acceptance of the refund terminate. 

    Subd. 4.    Reentry into state service.  When a former 
 member, who has become separated from state service that 
 entitled the member to membership and has received a refund of 
 retirement payments, reenters the state service in a position 
 that entitles the member to membership, that member shall 
 receive credit for the period of prior allowable state service 
 if the member repays into the fund the amount of the refund, 
 plus interest on it at an annual rate of 8.5 percent compounded 
 annually, at any time before subsequent retirement.  Repayment 
 may be made in installments or in a lump sum.  

    Subd. 5.    Death of annuitant or beneficiary.  If a 
 retired member who did not select an optional annuity under 
 section 352B.08, subdivision 3, dies or if the last eligible 
 recipient of an optional annuity under section 352B.08, 
 subdivision 3, dies and the total amounts paid as an annuity are 
 less than the accumulated member contributions under section 
 352B.02, subdivision 1a, to the credit of the retired member on 
 the date of retirement, the surviving spouse, or if none, the 
 former member's surviving children in equal shares, or if none, 
 the last recipient's estate is entitled, upon application, to a 
 refund.  The refund is equal to the balance of accumulated 
 member contributions under section 352B.02, subdivision 1a, 
 remaining after subtracting the total amount of benefits paid to 
 the decedent. 

    HIST: 1943 c 637 s 9; 1953 c 453 s 4; 1957 c 869 s 7,8; 1959 c 
 642 s 6; 1961 c 493 s 4; 1965 c 889 s 5; 1967 c 244 s 3,4; 1969 
 c 693 s 5; 1971 c 278 s 2; 1973 c 70 s 1; 1973 c 178 s 13; 1973 
 c 755 s 4; 1975 c 359 s 23; 1978 c 646 s 2; 1979 c 50 s 41; 1981 
 c 37 s 2; 1981 c 224 s 63,274; 1982 c 397 s 3,4; 1983 c 128 s 
 28-30; 1984 c 564 s 18,19; 1986 c 444; 1987 c 229 art 7 s 1; 
 1987 c 372 art 9 s 8; 1989 c 319 art 1 s 12; art 13 s 26,27; art 
 17 s 10; 1990 c 570 art 12 s 15,16; 1991 c 34 s 1; 1991 c 269 
 art 2 s 2; 1992 c 598 art 1 s 7; 1993 c 307 art 2 s 16; 1996 c 
 438 art 1 s 2