2006 Minnesota Statutes

354.45 OPTIONAL RETIREMENT ANNUITIES; UNPAID ANNUITIES, DISPOSITION.
    Subdivision 1. Optional annuity forms. The retirement board shall establish optional
annuities at retirement which shall take the form of an annuity payable for a period certain and
for life thereafter or the form of a joint and survivor annuity. The board shall also establish an
optional annuity which shall take the form of a guaranteed refund annuity paying the annuitant a
fixed amount for life with the guarantee that in the event of death the balance of the accumulated
deductions and interest accrued to the date of retirement will be paid to the designated beneficiary.
Except as provided in subdivision 1a, any optional annuity forms shall be actuarially equivalent to
the normal forms provided in section 354.44. In establishing these optional annuity forms, the
board shall obtain the written recommendation of the actuary retained under section 356.214. The
recommendations shall be a part of the permanent records of the board.
    Subd. 1a. Bounce-back annuity. (a) If a former member or disabilitant selects a joint and
survivor annuity option under subdivision 1 after June 30, 1989, the former member or disabilitant
must receive a normal single life annuity if the designated optional annuity beneficiary dies before
the former member or disabilitant. Under this option, no reduction may be made in the person's
annuity to provide for restoration of the normal single life annuity in the event of the death of
the designated optional annuity beneficiary.
(b) The annuity adjustment specified in paragraph (a) also applies to joint and survivor
annuity options under subdivision 1 elected before July 1, 1989. The annuity adjustment under
this paragraph occurs on July 1, 1989, or on the first day of the first month following the death
of the designated optional annuity beneficiary, whichever is later. This paragraph may not be
interpreted as authorizing retroactive payments.
    Subd. 2. Refund upon death of retired member. Upon the death of the member after
retirement where no designated beneficiary shall survive the member, any remaining unpaid
guaranteed annuity payments shall be commuted at the applicable postretirement interest rate
specified in section 356.215, subdivision 8, and paid in one sum to the estate of the member. Upon
the death of the last designated beneficiary after the death of the member, the value of any unpaid
guaranteed annuity payments shall be commuted at the applicable postretirement interest rate
specified in section 356.215, subdivision 8, and paid in one sum to the estate of the designated
beneficiary.
History: Ex1957 c 16 s 7; Ex1961 c 17 s 12; 1963 c 845 s 5; 1971 c 40 s 17; 1973 c 728 s
20; 1987 c 259 s 36; 1989 c 319 art 13 s 60,61; 1990 c 570 art 12 s 32; 1Sp2001 c 9 art 15 s 32;
2002 c 392 art 11 s 52; 2006 c 271 art 3 s 37,47