Minnesota Statutes 354.35 – Optional Accelerated Retirement Annuity Before Normal Retirement Age
Subdivision 1.Normal retirement age definition.
For purposes of this section, “normal retirement age” means normal retirement age as defined in United States Code, title 42, § 416(l), as amended.
Subd. 2.Election of accelerated annuity.
(a) Any coordinated member who retires before normal retirement age may elect to receive an optional accelerated retirement annuity from the association which provides for different annuity amounts over different periods of retirement. The optional accelerated retirement annuity must take the form of an annuity payable for the period before the member attains age 65, or normal retirement age, in a greater amount than the amount of the annuity calculated under section 354.44 on the basis of the age of the member at retirement, but the optional accelerated retirement annuity must be the actuarial equivalent of the member’s annuity computed on the basis of the member’s age at retirement. The greater amount must be paid until the retiree reaches age 65, or normal retirement age, and at that time the payment from the association must be reduced. For each year the retiree is under age 65, or normal retirement age, up to five percent of the total life annuity required reserves may be used to accelerate the optional retirement annuity under this section.
(b) Members who retire before age 62 may elect to have the annuity under this subdivision accelerated to age 62 rather than normal retirement age or age 65.
(c) The method of computing the optional accelerated retirement annuity provided in this subdivision is established by the board of trustees. In establishing the method of computing the optional accelerated retirement annuity or any modification of that procedure, the board of trustees must obtain the written approval of the actuary retained under section 356.214. The written approval must be a part of the permanent records of the board of trustees. The election of an optional accelerated retirement annuity is exercised by making an application on a form provided by the executive director.
Subd. 3.Postretirement adjustment eligibility.
An annuity under this section is eligible for postretirement adjustments under section 356.415.
Terms Used In Minnesota Statutes 354.35
- Actuarial equivalent: means the condition of one annuity or benefit having an equal actuarial present value as another annuity or benefit, determined as of a given date with each actuarial present value based on the appropriate mortality table adopted by the board of trustees based on the experience of the association as recommended by the actuary retained under section 356. See Minnesota Statutes 354.05
- Annuity: A periodic (usually annual) payment of a fixed sum of money for either the life of the recipient or for a fixed number of years. A series of payments under a contract from an insurance company, a trust company, or an individual. Annuity payments are made at regular intervals over a period of more than one full year.
- Annuity: means a retirement annuity, optional survivors annuity, or spouses annuity. See Minnesota Statutes 354.05
- Association: means the combined membership of all teachers who qualify and participate in the retirement program provided for in this chapter. See Minnesota Statutes 354.05
- board: means the board of trustees of the Teachers Retirement Association. See Minnesota Statutes 354.05
- Coordinated member: means any teacher covered by any agreement or modification made between the state and the Secretary of Health, Education and Welfare, making the provisions of the federal Old Age, Survivors and Disability Insurance Act applicable to such member. See Minnesota Statutes 354.05
- Normal retirement age: means age 65 for a person who first became a member of the association or a member of a pension fund listed in section 356. See Minnesota Statutes 354.05
- Retirement: means the withdrawal of a member from active teaching service who is paid a retirement annuity thereafter and commences with the date designated by the retirement board when the retirement annuity first accrues to the former member after withdrawal from active teaching service and application for an annuity under section 354. See Minnesota Statutes 354.05
- Retirement annuity: means the payments made by the association to a former member after retirement. See Minnesota Statutes 354.05