Minnesota Statutes 354.49 – Refund
Subdivision 1.Entitlement, application.
A person who ceases to render teaching service in any school or institution to which the provisions of this chapter apply is entitled to a refund provided in subdivision 2, or a deferred retirement annuity under section 354.55, subdivision 11. An application for a refund must not be made sooner than 30 days after termination of teaching service if the applicant has not again become a teacher. This payment must be made within 45 days after the receipt of an application for a refund or upon the receipt of member reporting data under section 354.52, subdivision 4a, and payroll cycle data under section 354.52, subdivision 4b, whichever is later.
Subd. 2.Calculation.
Terms Used In Minnesota Statutes 354.49
- Accumulated deductions: means the total of the sums deducted from the salary of a member and the total amount of assessments paid by a member in lieu of such deductions, credited to the member's individual fund, less amounts paid to the member or any person in the member's behalf in the form of refundments, annuity payments or benefit payments and less any other amounts deducted pursuant to law. 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
- Dismissal: The dropping of a case by the judge without further consideration or hearing. Source:
- Fiscal year: The fiscal year is the accounting period for the government. For the federal government, this begins on October 1 and ends on September 30. The fiscal year is designated by the calendar year in which it ends; for example, fiscal year 2006 begins on October 1, 2005 and ends on September 30, 2006.
- Formula program: means a retirement program which provides benefits based on certain percentages multiplied by the years of service and average salary of a member as described in section 354. See Minnesota Statutes 354.05
- Month: means a calendar month and "year" means a calendar year, unless otherwise expressed; and "year" is equivalent to the expression "year of our Lord. See Minnesota Statutes 645.44
- 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
- Person: may extend and be applied to bodies politic and corporate, and to partnerships and other unincorporated associations. See Minnesota Statutes 645.44
- 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
- Teacher: means :
(1) a person who renders service as a teacher, supervisor, principal, superintendent, librarian, nurse, counselor, social worker, therapist, or psychologist in:
(i) a public school of the state other than in Independent School District No. See Minnesota Statutes 354.05
- teaching: includes the service performed by any person coming within the definition of "teacher" as set forth in subdivision 2. See Minnesota Statutes 354.05
- Termination of teaching service: means the withdrawal of a member from active teaching service by resignation or the termination of the member's teaching contract by the employer. See Minnesota Statutes 354.05
Terms Used In Minnesota Statutes 354.49
- Accumulated deductions: means the total of the sums deducted from the salary of a member and the total amount of assessments paid by a member in lieu of such deductions, credited to the member's individual fund, less amounts paid to the member or any person in the member's behalf in the form of refundments, annuity payments or benefit payments and less any other amounts deducted pursuant to law. 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
- Dismissal: The dropping of a case by the judge without further consideration or hearing. Source:
- Fiscal year: The fiscal year is the accounting period for the government. For the federal government, this begins on October 1 and ends on September 30. The fiscal year is designated by the calendar year in which it ends; for example, fiscal year 2006 begins on October 1, 2005 and ends on September 30, 2006.
- Formula program: means a retirement program which provides benefits based on certain percentages multiplied by the years of service and average salary of a member as described in section 354. See Minnesota Statutes 354.05
- Month: means a calendar month and "year" means a calendar year, unless otherwise expressed; and "year" is equivalent to the expression "year of our Lord. See Minnesota Statutes 645.44
- 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
- Person: may extend and be applied to bodies politic and corporate, and to partnerships and other unincorporated associations. See Minnesota Statutes 645.44
- 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
- Teacher: means :
(1) a person who renders service as a teacher, supervisor, principal, superintendent, librarian, nurse, counselor, social worker, therapist, or psychologist in:
(i) a public school of the state other than in Independent School District No. See Minnesota Statutes 354.05
- teaching: includes the service performed by any person coming within the definition of "teacher" as set forth in subdivision 2. See Minnesota Statutes 354.05
- Termination of teaching service: means the withdrawal of a member from active teaching service by resignation or the termination of the member's teaching contract by the employer. See Minnesota Statutes 354.05
(a) Except as provided in section 354.44, subdivision 1, any person who ceases to be a member by reason of termination of teaching service, is entitled to receive a refund in an amount equal to the accumulated deductions credited to the account plus interest compounded annually using the following interest rates:
(1) before July 1, 1957, no interest accrues;
(2) July 1, 1957, to June 30, 2011, six percent;
(3) July 1, 2011, to June 30, 2018, four percent; and
(4) after June 30, 2018, three percent.
For the purpose of this subdivision, interest must be computed on fiscal year end balances through the last day of the month prior to the month in which the refund is issued.
(b) If the person has received permanent disability payments under section 354.48, the refund amount must be reduced by the amount of those payments.
Subd. 3.Refund in certain instances.
Any person not covered by the formula program who has attained normal retirement age with less than the minimum service required for an annuity and who ceases to be a member because of termination of teaching service is entitled upon application to a refund in an amount equal to the person’s accumulated deductions plus interest at the rates used to compute annuities under section 354.44, subdivision 2 in lieu of a proportionate annuity pursuant to section 356.32. If a person who has attained normal retirement age is eligible for an annuity or is covered by the formula program, the refund is an amount equal to the accumulated deductions credited to the person’s account as of June 30, 1957, and after July 1, 1957, the accumulated deductions plus interest computed as provided under subdivision 2.
Subd. 4.Termination of membership.
Membership in the retirement association of any person shall terminate under the following conditions: (1) if a person takes a refund pursuant to this section; (2) when a person’s retirement annuity first begins to accrue as provided in section 354.44, subdivisions 1 and 4; (3) upon the person’s ceasing to be a “teacher” whether by resignation, dismissal, or termination of temporary or provisional employment for the purpose of determining eligibility for disability or survivorship benefits as provided in sections 354.48, subdivision 1 and 354.46, subdivision 1, respectively.
Subd. 5.
[Repealed, 2007 c 134 art 2 s 50]