2003 Minnesota Statutes

     352.22 Refund or deferred annuities. 

    Subdivision 1.    Service termination.  Any employee who 
 ceases to be a state employee by reason of termination of state 
 service or layoff is entitled to a refund provided in 
 subdivision 2 or a deferred retirement annuity as provided in 
 subdivision 3.  Application for a refund may be made after the 
 termination of state service or layoff if the applicant has not 
 again become a state employee required to be covered by the 
 system.  

    Subd. 2.    Amount of refund.  Except as provided in 
 subdivision 3, the refund payable to a person who ceased to be a 
 state employee by reason of termination of state service is in 
 an amount equal to employee accumulated contributions plus 
 interest at the rate of six percent per year compounded 
 annually.  Included with the refund is any interest paid as part 
 of repayment of a past refund, plus interest thereon from the 
 date of repayment.  Interest must be computed to the first day 
 of the month in which the refund is processed and must be based 
 on fiscal year or monthly balances, whichever applies. 

    Subd. 2a.    Certain refund repayments prohibited.  No 
 refunds of contributions made to the metropolitan transit 
 commission-transit operating division employees retirement fund 
 received before July 1, 1978, or for service rendered before 
 July 1, 1978, may be repaid.  

    Subd. 3.    Deferred annuity.  (a) An employee who has 
 at least three years of allowable service when termination 
 occurs may elect to leave the accumulated contributions in the 
 fund and be entitled to a deferred retirement annuity.  The 
 annuity must be computed under the law in effect when state 
 service terminated, on the basis of allowable service before 
 termination of service. 

    (b) An employee on layoff or on leave of absence without 
 pay, except a leave of absence for health reasons, who does not 
 return to state service shall have an annuity, deferred annuity, 
 or other benefit to which the employee may become entitled 
 computed under the law in effect on the employee's last working 
 day. 

    (c) No application for a deferred annuity may be made more 
 than 60 days before the time the former employee reaches the 
 required age for entitlement to the payment of the annuity.  The 
 deferred annuity begins to accrue no earlier than 60 days before 
 the date the application is filed in the office of the system, 
 but not (1) before the date the employee reaches the required 
 age for entitlement to the annuity nor (2) before the day 
 following the termination of state service in a position not 
 covered by the retirement system. 

    (d) Application for the accumulated contributions left on 
 deposit with the fund may be made at any time after 30 days 
 following the date of termination of service. 

    Subd. 4. Repealed, 1983 c 128 s 36 

    Subd. 5.    Refund generally unlimited.  The right of 
 refund provided in this section is not restricted as to time 
 unless specifically provided and the statute of limitation does 
 not apply to it. 

    Subd. 6.  Repealed, 1965 c 230 s 18 

    Subd. 7.  Repealed, Ex1967 c 57 so 20 

    Subd. 8.    Refund specifically limited.  If a former 
 employee covered by the system does not apply for refund within 
 five years after the last deduction was taken from salary for 
 the retirement fund, and does not have enough service to qualify 
 for a deferred annuity, accumulated contributions must be 
 credited to and become a part of the retirement fund.  If the 
 former employee returns to state service and becomes a state 
 employee covered by the system, the amount credited to the 
 retirement fund, if more than $25, must be restored to the 
 individual account.  If the amount credited to the fund is over 
 $25 and the former employee applies for refund or an annuity 
 under section 352.72, the amount must be restored to the former 
 employee's individual account and a refund made or an annuity 
 paid, whichever applies. 

    Subd. 9. Repealed, 1993 c 307 art 7 s 1 

    Subd. 10.    Other refunds.  Former employees covered by 
 the system are entitled to apply for refunds if they are or 
 become members of the State Patrol retirement fund, the state 
 Teachers Retirement Association, or employees of the University 
 of Minnesota excluded from coverage under the system by action 
 of the Board of Regents; or labor service employees, excluded 
 from coverage under section 352.01, subdivision 2b, clause (25); 
 or employees of the adjutant general who under federal law 
 effectually elect membership in a federal retirement system; or 
 officers or employees of the senate or house of representatives, 
 excluded from coverage under section 352.01, subdivision 2b, 
 clause (8).  The refunds must include accumulated contributions 
 plus interest as provided in subdivision 2.  These employees may 
 apply 30 days or more after their coverage ceases, even if they 
 continue in state service but in positions not covered by this 
 chapter. 

    Subd. 11. Repealed, 1980 c 342 s 21 

    HIST: 1957 c 928 s 14; Ex1959 c 6 s 14,15; Ex1961 c 67 s 
 13,14; 1963 c 383 s 46-52; 1965 c 230 s 10-13; Ex1967 c 57 s 20; 
 1969 c 31 s 1; 1969 c 188 s 2; 1969 c 893 s 11; 1971 c 12 s 7,8; 
 1971 c 194 s 5; 1973 c 221 s 8; 1973 c 653 s 35,36; 1975 c 368 s 
 31,32; 1978 c 538 s 5; 1980 c 342 s 4,5; 1981 c 37 s 2; 1981 c 
 224 s 51-53; 1Sp1981 c 4 art 1 s 163; 1983 c 128 s 13; 1984 c 
 564 s 12; 1984 c 654 art 5 s 58; 1Sp1985 c 7 s 6; 1986 c 444; 
 1987 c 229 art 6 s 1; 1987 c 372 art 9 s 4; 1989 c 319 art 1 s 
 7,8; art 13 s 14,15; 1992 c 432 art 1 s 9; 1993 c 307 art 2 s 
 3,4; 1994 c 528 art 1 s 7; 1995 c 54 s 27; 1Sp2001 c 10 art 3 s 
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