Section 354A.38 Effect of Refund; Repayment of Refund

MINNESOTA STATUTES AND CODES

Section 354A.38 Effect of Refund; Repayment of Refund

354A.38 EFFECT OF REFUND; REPAYMENT OF REFUND.

Subdivision 1.Effect of refund; termination of service credit.

If a coordinated member or former coordinated member applies for and accepts a refund pursuant to section 354A.37, all allowable service which was credited to the member or former member shall be terminated.

Subd. 2.Repayment of refund.

A coordinated member with at least two years of allowable service credited subsequent to the member's last application for and acceptance of a refund pursuant to section 354A.37 shall be entitled to repay the refund. The amount of the refund repayment shall be calculated pursuant to subdivision 3. If the member has previously applied for and accepted more than one refund, and the previous refund or refunds have not been repaid, then the member shall be entitled only to repay all outstanding refunds and shall not be entitled to repay only the most recent refund.

Subd. 3.Computation of refund repayment amount.

If the coordinated member elects to repay a refund under subdivision 2, the repayment to the fund must be in an amount equal to refunds the member has accepted plus interest at the rate of 8.5 percent compounded annually from the date that the refund was accepted to the date that the refund is repaid.