Membership
You are a Coordinated Plan member if you were first employed or re-employed on or after July 1, 1978 with SPPS or SPC, or if you elected to convert to the Coordinated Plan from the Basic Plan in 1978. Coordinated Plan members contribute 7.5% of their pre-tax salary.
Vested Membership
Vested membership means that you or your survivors are guaranteed a benefit other than a refund of your contributions. To be vested, you must have at least three years of allowable retirement service credit.
Annual Estimates and Statements of Account
The SPTRFA mails an annual fiscal year end update of your retirement service credit balance.
You will receive an estimate of benefits if you are at least age 40, vested and actively employed. Otherwise, you will receive a statement of account.
You may also request information on your retirement service credit and projected benefits by contacting the SPTRFA office.
Survivor Benefits
In the event of your death prior to retirement, there may be survivor benefits payable. If there are no survivor benefits payable, your beneficiaries will receive a lump sum refund of your contributions.
See Beneficiary.
Active Member Death
In the event of your death prior to retirement, two types of survivor benefits may be payable:
- Surviving Spouse
- Dependent Children
1. Surviving Spouse
Your spouse is eligible for a lump sum refund of your contributions plus 6% interest or a surviving spouse monthly benefit. In order for your spouse to be eligible for a monthly benefit, you must be vested.
The amount of the monthly benefit your spouse will receive depends upon the retirement benefit option chosen:
- 100% joint and survivor lifetime annuity, or
- Term certain annuity of 5, 10, 15, or 20 years.
The benefit amounts are calculated based on your age and the age of your surviving spouse at the time of your death. The amounts are subject to early retirement reductions.
In the event that your spouse chooses a term certain annuity, the benefit will be paid for the length of the term. If your surviving spouse elects a term certain annuity and dies prior to the expiration of the term, the commuted value will be paid in a lump sum to his or her estate.
2. Dependent Children
If you are vested and no spousal survivor benefit is payable (see above), a dependent children benefit is available:
- If your dependent children are under the age of 15, monthly payments will be made for each child from the date of your death until they reach the age of 20.
- If your dependent children are age 15 or older, monthly payments will be made for five years.
The payment to your dependent children is an amount actuarially equivalent to the value of a 100% joint and survivor lifetime annuity. The amount is calculated by using your age and the age of your dependent children at the time of your death. If you have more than one dependent child, each child will receive a proportionate share of the actuarial value of the dependent children benefit.
Retired Member Death – Spousal
In the event of your death after retirement, a spousal survivor benefit will only be payable if you chose survivor coverage as part of your irrevocable annuity option elected at the time of retirement.
See Retirement Annuity Options.
Disability Retirement
You may apply for a disability retirement if you become totally and permanently disabled.
Minn. Stat. § 354A.011 subd. 14. Disability.
“ ‘Disability’ or ‘permanent and total disability’ means the inability of a member to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to be of long continued and indefinite duration which shall in no event be less than one year.”
You must be vested and have 60 or fewer sick days remaining at the time of application.
Certificates from two licensed physicians, chiropractors, or psychologists of the member’s choosing and concurrence by the SPTRFA’s Independent Medical Examiner are required to support the existence of a disability.
The amount of the disability retirement is the unreduced retirement benefit amount calculated using your years of service and final average salary at the time of the disability.
If your disability benefit is granted:
- You may elect any of the five optional annuities.
- Annual physical examinations are required to verify the continued existence of the disability.
You may be eligible for disability coverage through Social Security. This benefit would be in addition to the benefit from the SPTRFA.