Bill Text: MN HF2483 | 2011-2012 | 87th Legislature | Introduced
Bill Title: Public employee defined contribution plan in-service distributions authorized at age 66.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2012-02-23 - Introduction and first reading, referred to Government Operations and Elections [HF2483 Detail]
Download: Minnesota-2011-HF2483-Introduced.html
1.2relating to retirement; public employees defined contribution plan; authorizing
1.3in-service distributions at age 66; amending Minnesota Statutes 2010, section
1.4353D.07, subdivisions 1, 2, 3, by adding a subdivision.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. Minnesota Statutes 2010, section 353D.07, subdivision 1, is amended to
1.7read:
1.8 Subdivision 1. Type of plan; uniformity. (a) The plan is a defined contribution plan
1.9the benefits from which are payable upon termination of service, retirement, disability,
1.10or death, or under an in-service withdrawal under subdivision 6. The amount of benefits
1.11is determined by the value of accumulated contributions plus a proportionate share of
1.12investment income of the fund credited to each individual account.
1.13(b) In the case of ambulance service personnel, eligibility standards must be uniform
1.14among all ambulance service personnel of an ambulance service electing to participate.
1.15EFFECTIVE DATE.This section is effective the day following final enactment.
1.16 Sec. 2. Minnesota Statutes 2010, section 353D.07, subdivision 2, is amended to read:
1.17 Subd. 2. Payment of benefits. Withdrawal of a benefit based on individual
1.18participant contributions and employer contributions plus accrued investment income is
1.19payable upon the death or termination of a participantbut not at the time, or when an
1.20individual revokes membership in the defined contribution plan undersection
353D.02
1.21subdivision 6.An A valid application, made by or on behalf of the participant on a form
1.22prescribed by the executive director, must be filed before any payment of benefitsmay be
1.23is made.
2.1EFFECTIVE DATE.This section is effective the day following final enactment.
2.2 Sec. 3. Minnesota Statutes 2010, section 353D.07, subdivision 3, is amended to read:
2.3 Subd. 3. Form of benefit. A retirement benefit is payable in a lump sum equal to
2.4the value of a participant's account at the date of the account withdrawal. As an alternative
2.5to a lump-sum distribution, the participant may choose to have the association transfer
2.6the total account value for the purchase of an annuity payable at a designated age to an
2.7insurance company of the participant's choice that is licensed to do business in the state.
2.8EFFECTIVE DATE.This section is effective the day following final enactment.
2.9 Sec. 4. Minnesota Statutes 2010, section 353D.07, is amended by adding a subdivision
2.10to read:
2.11 Subd. 6. In-service withdrawal option. (a) Notwithstanding section 353D.02, a
2.12participant in the plan who has attained at least age 66 may terminate plan coverage
2.13although the person continues in the employment which gave rise to the plan coverage.
2.14(b) A termination of coverage under paragraph (a) is irrevocable. Notwithstanding
2.15any law to the contrary, the person is not eligible for the continuing employment to
2.16have coverage by this plan or any other, except for a 403(b), 457(b), or other applicable
2.17supplemental plan in which the person is authorized by law to participate.
2.18EFFECTIVE DATE.This section is effective the day following final enactment.
1.3in-service distributions at age 66; amending Minnesota Statutes 2010, section
1.4353D.07, subdivisions 1, 2, 3, by adding a subdivision.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. Minnesota Statutes 2010, section 353D.07, subdivision 1, is amended to
1.7read:
1.8 Subdivision 1. Type of plan; uniformity. (a) The plan is a defined contribution plan
1.9the benefits from which are payable upon termination of service, retirement, disability,
1.10
1.11is determined by the value of accumulated contributions plus a proportionate share of
1.12investment income of the fund credited to each individual account.
1.13(b) In the case of ambulance service personnel, eligibility standards must be uniform
1.14among all ambulance service personnel of an ambulance service electing to participate.
1.15EFFECTIVE DATE.This section is effective the day following final enactment.
1.16 Sec. 2. Minnesota Statutes 2010, section 353D.07, subdivision 2, is amended to read:
1.17 Subd. 2. Payment of benefits. Withdrawal of a benefit based on individual
1.18participant contributions and employer contributions plus accrued investment income is
1.19payable upon the death or termination of a participant
1.20individual revokes membership in the defined contribution plan under
1.21subdivision 6.
1.22prescribed by the executive director, must be filed before any payment of benefits
1.23is made.
2.1EFFECTIVE DATE.This section is effective the day following final enactment.
2.2 Sec. 3. Minnesota Statutes 2010, section 353D.07, subdivision 3, is amended to read:
2.3 Subd. 3. Form of benefit. A retirement benefit is payable in a lump sum equal to
2.4the value of a participant's account at the date of the account withdrawal. As an alternative
2.5to a lump-sum distribution, the participant may choose to have the association transfer
2.6the total account value for the purchase of an annuity payable at a designated age to an
2.7insurance company of the participant's choice that is licensed to do business in the state.
2.8EFFECTIVE DATE.This section is effective the day following final enactment.
2.9 Sec. 4. Minnesota Statutes 2010, section 353D.07, is amended by adding a subdivision
2.10to read:
2.11 Subd. 6. In-service withdrawal option. (a) Notwithstanding section 353D.02, a
2.12participant in the plan who has attained at least age 66 may terminate plan coverage
2.13although the person continues in the employment which gave rise to the plan coverage.
2.14(b) A termination of coverage under paragraph (a) is irrevocable. Notwithstanding
2.15any law to the contrary, the person is not eligible for the continuing employment to
2.16have coverage by this plan or any other, except for a 403(b), 457(b), or other applicable
2.17supplemental plan in which the person is authorized by law to participate.
2.18EFFECTIVE DATE.This section is effective the day following final enactment.
