Minnesota Legislature
HF 37
as introduced - 83rd Legislature, 2003 1st Special Session (2003 - 2003) Posted on 12/15/2009 12:00am
KEY: stricken = removed, old language.
underscored = added, new language.
Current Version - as introduced
1.1 A bill for an act 1.2 relating to retirement; modifying various public 1.3 pension plan provisions; allowing certain service 1.4 credit purchases; regulating leave without pay for 1.5 legislative coordinating commission employees; 1.6 amending Minnesota Statutes 2002, sections 3A.11, 1.7 subdivision 1; 11A.17, subdivision 2; 122A.46, 1.8 subdivision 9; 352.96, subdivision 2; 353.01, 1.9 subdivisions 2d, 6; 353.028, subdivision 2; 353D.01, 1.10 subdivision 2; 353D.02, by adding a subdivision; 1.11 353F.02, subdivision 4; 354.094, subdivision 1; 1.12 356.24, subdivision 1; 356B.05; 383B.49; 383B.493; 1.13 423C.03, subdivision 3; 423C.08; 424A.02, subdivision 1.14 3; Laws 1978, chapter 685, section 1, as amended; Laws 1.15 1978, chapter 685, section 2; Laws 1978, chapter 685, 1.16 section 3; Laws 1978, chapter 685, section 6; Laws 1.17 1999, chapter 222, article 16, section 16, as amended; 1.18 Laws 2000, chapter 461, article 4, section 4; Laws 1.19 2000, chapter 461, article 12, section 20, as amended; 1.20 Laws 2000, chapter 461, article 19, section 6; Laws 1.21 2001, First Special Session chapter 10, article 6, 1.22 section 21, as amended; repealing Minnesota Statutes 1.23 2002, sections 354.541; 354A.109; Laws 1978, chapter 1.24 685, section 5. 1.25 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 1.26 ARTICLE 1 1.27 LEGISLATIVE BRANCH RETIREMENT PROVISIONS 1.28 Section 1. [LCC; LEAVE WITHOUT PAY.] 1.29 (a) If the legislative coordinating commission requires 1.30 employees under its jurisdiction to take temporary leave without 1.31 pay during the biennium ending June 30, 2005, the first 80 hours 1.32 of leave without pay in fiscal year 2004 and the first 80 hours 1.33 of leave without pay in fiscal year 2005 are governed by this 1.34 paragraph. The commission must permit employees taking this 1.35 leave to continue accruing vacation and sick leave, be eligible 2.1 for paid holidays and insurance benefits, accrue seniority, and 2.2 accrue service credit and credited salary in state retirement 2.3 plans permitting service credits for authorized leaves of 2.4 absence as if the employee had actually been employed during the 2.5 time of the leave. The commission may make the employer 2.6 contribution to the employee's retirement plan if the employee 2.7 participates in a defined contribution plan. If the leave 2.8 without pay is for one full pay period or longer, any holiday 2.9 pay must be included in the first payroll warrant after return 2.10 from the leave. Managers must attempt to schedule leaves to 2.11 meet the needs of employees and the need to continue efficient 2.12 operation of their offices. 2.13 (b) Notwithstanding Minnesota Statutes, section 43A.18, 2.14 subdivisions 2 and 3, the legislative coordinating commission 2.15 may require employees in the office of the legislative auditor 2.16 whose terms and conditions of employment are determined through 2.17 the commissioner and managerial compensation plans to take leave 2.18 without pay as described in paragraph (a). 2.19 Sec. 2. Minnesota Statutes 2002, section 3A.11, 2.20 subdivision 1, is amended to read: 2.21 Subdivision 1. [TRANSFER OF RESERVES.] (a) Thereserves2.22 costs necessary to fund the retirement allowance granted 2.23 pursuant to section 3A.02 to a former legislator upon retirement 2.24 shall be appropriated from the general fund to the directorand2.25shall be transferred by the director to the Minnesota2.26postretirement investment fund as of the last business day of2.27the month in which the retirement allowance begins to accrue in2.28accord with section 11A.18. The amount of the transfer shall be2.29determined by or determined under a procedure specified by the2.30actuary retained by the legislative commission on pensions and2.31retirement, in accord with the appropriate mortality table2.32adopted by the board of directors of the Minnesota state2.33retirement system based on the experience of the plan as2.34recommended by the commission-retained actuary and the interest2.35rate assumption specified in section 356.215, subdivision 8for 2.36 payment of pension obligations due to the retiree as provided in 3.1 this chapter. 3.2 (b) Retirement allowances payable to retired legislators 3.3 and their survivors under this chapter must be adjusted in the 3.4 same manner, at the same times, and in the same amounts as are 3.5 benefits payable from the Minnesota postretirement investment 3.6 fund to retirees of a participating public pension plan. 3.7 Sec. 3. [EFFECTIVE DATE.] 3.8 Sections 1 and 2 are effective on the day following final 3.9 enactment. 3.10 ARTICLE 2 3.11 STATE BOARD OF INVESTMENT CHANGES 3.12 Section 1. Minnesota Statutes 2002, section 11A.17, 3.13 subdivision 2, is amended to read: 3.14 Subd. 2. [ASSETS.] The assets of the supplemental 3.15 investment fund shall consist of the money certified and 3.16 transmitted to the state board from the participating public 3.17 retirement plans and funds or from the board of the Minnesota 3.18 state colleges and universities under section 136F.45. The 3.19 assets must be used to purchase investment shares in the 3.20 investment accounts specified by the plan or fund. These 3.21 accounts must be valued at least on a monthly basis, but may be 3.22 valued more frequently as determined by the state board of 3.23 investment. 3.24 Sec. 2. Minnesota Statutes 2002, section 352.96, 3.25 subdivision 2, is amended to read: 3.26 Subd. 2. [PURCHASE OF SHARES.] The amount of compensation 3.27 so deferred may be used to purchase: 3.28 (1) shares in the Minnesota supplemental investment fund 3.29 established in section 11A.17 that are selected to be offered 3.30 under the plan by the state board of investment; 3.31 (2) saving accounts in federally insured financial 3.32 institutions; 3.33 (3) life insurance contracts, fixed annuity and variable 3.34 annuity contracts from companies that are subject to regulation 3.35 by the commissioner of commerce; 3.36 (4) investment options from open-end investment companies 4.1 registered under the federal Investment Company Act of 1940, 4.2 United States Code, title 15, sections 80a-1 to 80a-64; 4.3 (5) investment options from a firm that is a registered 4.4 investment advisor under the Investment Advisers Act of 1940, 4.5 United States Code, title 15, section 80b-1 to 80b-21; 4.6 (6) investment options of a bank as defined in United 4.7 States Code, title 15, section 80b-2, subsection (a), paragraph 4.8 (2), or a bank holding company as defined in the Bank Holding 4.9 Company Act of 1956, United States Code, title 12, section 1841, 4.10 subsection (a), paragraph (1); or 4.11 (7) a combination of clause (1), (2), (3), (4), (5), or 4.12 (6), as provided by the plan as specified by the participant. 4.13 All amounts contributed to the deferred compensation plan 4.14 and all earnings on those amounts will be held for the exclusive 4.15 benefit of the plan participants and beneficiaries. These 4.16 amounts will be held in trust, in custodial accounts, or in 4.17 qualifying annuity contracts as required by federal law and in 4.18 accordance with section 356A.06, subdivision 1. This 4.19 subdivision does not authorize an employer contribution, except 4.20 as authorized in section 356.24, subdivision 1, paragraph (a), 4.21 clause (5). The state, political subdivision, or other 4.22 employing unit is not responsible for any loss that may result 4.23 from investment of the deferred compensation. 4.24 Sec. 3. [EFFECTIVE DATE.] 4.25 Sections 1 and 2 are effective July 1, 2003. 4.26 ARTICLE 3 4.27 TEACHER EXTENDED LEAVES 4.28 Section 1. Minnesota Statutes 2002, section 122A.46, 4.29 subdivision 9, is amended to read: 4.30 Subd. 9. [BENEFITS.] A teacher on an extended leave of 4.31 absence shall receive all of the health, accident, medical, 4.32 surgical and hospitalization insurance or benefits, for both the 4.33 teacher and the teacher's dependents, for which the teacher 4.34 would otherwise be eligible if not on an extended leave. A 4.35 teacher shall receive the coverage if such coverage is available 4.36 from the school district's insurer, if the teacher requests the 5.1 coverage, and if the teacher either (a) reimburses the district 5.2 for the full amount of the premium necessary to maintain the 5.3 coverage within one monthfollowingpreceding the district's 5.4 payment of the premium, or (b) if the district is wholly or 5.5 partially self-insured, pays the district, according to a 5.6 schedule agreed upon by the teacher and the school board, an 5.7 amount determined by the school board to be the amount that 5.8 would be charged for the coverage chosen by the teacher if the 5.9 school board purchased all health, accident, medical, surgical 5.10 and hospitalization coverage for its teachers from an 5.11 insurer. A school district may enter into an agreement with a 5.12 teacher in the district where the district agrees to pay all or 5.13 a portion of the premium for such coverage. Any such agreement 5.14 must include a sunset of eligibility to qualify for the payment. 5.15 [EFFECTIVE DATE.] This section is effective the day 5.16 following final enactment and applies to agreements in effect or 5.17 entered into after that date. The sunset date of eligibility 5.18 must not extend beyond June 30, 2005. The amendments to this 5.19 section expire on July 1, 2005. 5.20 Sec. 2. Minnesota Statutes 2002, section 354.094, 5.21 subdivision 1, is amended to read: 5.22 Subdivision 1. [SERVICE CREDIT CONTRIBUTIONS.] Upon 5.23 granting any extended leave of absence under section 122A.46 or 5.24 136F.43, the employing unit granting the leave must certify the 5.25 leave to the association on a form specified by the executive 5.26 director. A member granted an extended leave of absence under 5.27 section 122A.46 or 136F.43 may pay employee contributions and 5.28 receive allowable service credit toward annuities and other 5.29 benefits under this chapter, for each year of the leave, 5.30 provided that the member and the employing board make the 5.31 required employer contribution in any proportion they may agree 5.32 upon, during the period of the leave. The employer may enter 5.33 into an agreement with a teacher in the district under which all 5.34 or a portion of the employee's contribution is paid by the 5.35 employer. Any such agreement must include a sunset of 5.36 eligibility to qualify for the payment and must not be a part of 6.1 the collective bargaining agreement. The leave period must not 6.2 exceed five years. A member may not receive more than five 6.3 years of allowable service credit under this section. The 6.4 employee and employer contributions must be based upon the rates 6.5 of contribution prescribed by section 354.42 for the salary 6.6 received during the year immediately preceding the extended 6.7 leave. Payments for the years for which a member is receiving 6.8 service credit while on extended leave must be made on or before 6.9 the later of June 30 of each fiscal year for which service 6.10 credit is received or within 30 days after first notification of 6.11 the amount due, if requested by the member, is given by the 6.12 association. No payment is permitted after the following 6.13 September 30. Payments received after June 30 must include 6.14 interest at an annual rate of 8.5 percent from June 30 through 6.15 the end of the month in which payment is received. 6.16 Notwithstanding the provisions of any agreements to the 6.17 contrary, employee and employer contributions may not be made to 6.18 receive allowable service credit if the member does not have 6.19 full reinstatement rights as provided in section 122A.46 or 6.20 136F.43, both during and at the end of the extended leave. 6.21 Any school district paying the employee's retirement 6.22 contributions under this section shall forward to the applicable 6.23 retirement association or retirement fund a copy of the 6.24 agreement executed by the school district and the employee. 6.25 [EFFECTIVE DATE.] This section is effective the day 6.26 following final enactment and applies to agreements in effect or 6.27 entered into after that date. The sunset date of eligibility 6.28 must not extend beyond June 30, 2005. The amendments to this 6.29 section expire on July 1, 2005. 6.30 Sec. 3. [REPORT.] 6.31 By February 1, 2005, the executive director of the teachers 6.32 retirement association, the executive secretary of the Duluth 6.33 teachers retirement fund association, the executive director of 6.34 the St. Paul teachers retirement fund association, and the 6.35 executive director of the Minneapolis teachers retirement fund 6.36 association shall submit a report to the chair of the 7.1 legislative commission on pensions and retirement summarizing 7.2 the agreements entered into under Minnesota Statutes, section 7.3 354.094, subdivision 1, or 354A.091, subdivision 1, on or before 7.4 December 31, 2004. 7.5 ARTICLE 4 7.6 PUBLIC EMPLOYEES RETIREMENT 7.7 ASSOCIATION MEMBERSHIP CHANGES 7.8 Section 1. Minnesota Statutes 2002, section 353.01, 7.9 subdivision 2d, is amended to read: 7.10 Subd. 2d. [OPTIONAL MEMBERSHIP.] (a) Membership in the 7.11 association is optional by action of the individual employee for 7.12 the following public employees who meet the conditions set forth 7.13 in subdivision 2a: 7.14 (1) members of the coordinated plan who are also employees 7.15 of labor organizations as defined in section 353.017, 7.16 subdivision 1, for their employment by the labor organization 7.17 only if they elect to have membership under section 353.017, 7.18 subdivision 2; 7.19 (2) persons who are elected or persons who are appointed to 7.20 elected positions other than local governing body elected 7.21 positions who elect to participate by filing a written election 7.22 for membership; 7.23 (3) members of the association who are appointed by the 7.24 governor to be a state department head and who elect not to be 7.25 covered by the general state employees retirement plan of the 7.26 Minnesota state retirement system under section 352.021;and7.27 (4) city managers as defined in section 353.028, 7.28 subdivision 1, who do not elect to be excluded from membership 7.29 in the association under section 353.028, subdivision 2; and 7.30 (5) employees of the port authority of the city of St. Paul 7.31 who were at least age 45 on January 1, 2003, and who elect to 7.32 participate by filing a written election for membership. 7.33 (b) Membership in the association is optional by action of 7.34 the governmental subdivision for the employees of the following 7.35 governmental subdivisions under the conditions specified: 7.36 (1) the Minnesota association of townships if the board of 8.1 the association, at its option, certifies to the executive 8.2 director that its employees are to be included for purposes of 8.3 retirement coverage, in which case the status of the association 8.4 as a participating employer is permanent; and 8.5 (2) a county historical society if the county in which the 8.6 historical society is located, at its option, certifies to the 8.7 executive director that the employees of the historical society 8.8 are to be county employees for purposes of retirement coverage 8.9 under this chapter. The status as a county employee must be 8.10 accorded to all similarly situated county historical society 8.11 employees and, once established, must continue as long as a 8.12 person is an employee of the county historical society. 8.13 (c) For employees who are covered by paragraph (a), clause 8.14 (1), (2), or (3), or covered by paragraph (b), if the necessary 8.15 membership election is not made, the employee is excluded from 8.16 retirement coverage under this chapter. For employees who are 8.17 covered by paragraph (a), clause (4), if the necessary election 8.18 is not made, the employee must become a member and have 8.19 retirement coverage under this chapter. The option to become a 8.20 member, once exercised under this subdivision, may not be 8.21 withdrawn until termination of public service as defined under 8.22 subdivision 11a. 8.23 Sec. 2. Minnesota Statutes 2002, section 353.01, 8.24 subdivision 6, is amended to read: 8.25 Subd. 6. [GOVERNMENTAL SUBDIVISION.] (a) "Governmental 8.26 subdivision" means a county, city, town, school district within 8.27 this state, or a department or unit of state government, or any 8.28 public body whose revenues are derived from taxation, fees, 8.29 assessments or from other sources. 8.30 (b) Governmental subdivision also means the public 8.31 employees retirement association, the league of Minnesota 8.32 cities, the association of metropolitan municipalities, public 8.33 hospitals owned or operated by, or an integral part of, a 8.34 governmental subdivision or governmental subdivisions, the 8.35 association of Minnesota counties, the metropolitan intercounty 8.36 association, the Minnesota municipal utilities association, the 9.1 metropolitan airports commission, the Minneapolis employees 9.2 retirement fund for employment initially commenced after June 9.3 30, 1979, the range association of municipalities and schools, 9.4 soil and water conservation districts, economic development 9.5 authorities created or operating under sections 469.090 to 9.6 469.108, the port authority of the city of St. Paul, the Spring 9.7 Lake Park fire department, incorporated, the Red Wing 9.8 environmental learning center, and the Dakota county 9.9 agricultural society. 9.10 (c) Governmental subdivision does not mean any municipal 9.11 housing and redevelopment authority organized under the 9.12 provisions of sections 469.001 to 469.047; or any port authority 9.13 organized under sections 469.048 to 469.089 other than the port 9.14 authority of the city of St. Paul; or any hospital district 9.15 organized or reorganized prior to July 1, 1975, under sections 9.16 447.31 to 447.37 or the successor of the district, nor the 9.17 Minneapolis community development agency. 9.18 Sec. 3. Minnesota Statutes 2002, section 353.028, 9.19 subdivision 2, is amended to read: 9.20 Subd. 2. [ELECTION.] (a) A city manager may elect to be 9.21 excluded from membership in the association. The election of 9.22 exclusion must be made within six months following the 9.23 commencement of employment, in writing on a form prescribed by 9.24 the executive director, and must be approved by a resolution of 9.25 the governing body of the city. The election of exclusion is 9.26 not effective until it is filed with the executive director. 9.27 Membership of a city manager in the association ceases on the 9.28 date the written election is received by the executive director 9.29 or upon a later date specified.The election to be excluded9.30from membership must include a provision agreeing that the9.31person will not at any time in the future seek authorization to9.32purchase service credit for any period of excluded service and9.33is irrevocable.Employee and employer contributions made on 9.34 behalf of a person exercising the option to be excluded from 9.35 membership under this section must be refunded in accordance 9.36 with section 353.27, subdivision 7. 10.1 (b) A city manager who has elected exclusion under this 10.2 subdivision may elect to revoke that action by filing a written 10.3 notice with the executive director. The notice must be on a 10.4 form prescribed by the executive director and must be approved 10.5 by a resolution of the governing body of the city. Membership 10.6 of the city manager in the association resumes prospectively 10.7 from the date of the first day of the pay period for which 10.8 contributions were deducted or, if pay period coverage dates are 10.9 not provided, the date on which the notice of revocation or 10.10 contributions are received in the office of the association, 10.11 provided that the notice of revocation is received by the 10.12 association within 60 days of the receipt of contributions. 10.13 (c) An election under paragraph (b) is irrevocable. Any 10.14 election under paragraph (a) or (b) must include a statement 10.15 that the individual will not seek authorization to purchase 10.16 service credit for any period of excluded service. 10.17 Sec. 4. Minnesota Statutes 2002, section 353D.01, 10.18 subdivision 2, is amended to read: 10.19 Subd. 2. [ELIGIBILITY.] (a) Eligibility to participate in 10.20 the defined contribution plan is available to: 10.21 (1) elected local government officials of a governmental 10.22 subdivision who elect to participate in the plan under section 10.23 353D.02, subdivision 1, and who, for the elected service 10.24 rendered to a governmental subdivision, are not members of the 10.25 public employees retirement association within the meaning of 10.26 section 353.01, subdivision 7; 10.27 (2) physicians who, if they did not elect to participate in 10.28 the plan under section 353D.02, subdivision 2, would meet the 10.29 definition of member under section 353.01, subdivision 7; 10.30 (3) basic and advanced life support emergency medical 10.31 service personnel employed by or providing services for any 10.32 public ambulance service or privately operated ambulance service 10.33 that receives an operating subsidy from a governmental entity 10.34 that elects to participate under section 353D.02, subdivision 3; 10.35and10.36 (4) members of a municipal rescue squad associated with 11.1 Litchfield in Meeker county, or of a county rescue squad 11.2 associated with Kandiyohi county, if an independent nonprofit 11.3 rescue squad corporation, incorporated under chapter 317A, 11.4 performing emergency management services, and if not affiliated 11.5 with a fire department or ambulance service and if its members 11.6 are not eligible for membership in that fire department's or 11.7 ambulance service's relief association or comparable pension 11.8 plan; and 11.9 (5) employees of the port authority of the city of St. Paul 11.10 who elect to participate in the plan under section 353D.02, 11.11 subdivision 5, and who are not members of the public employees 11.12 retirement association under section 353.01, subdivision 7. 11.13 (b) For purposes of this chapter, an elected local 11.14 government official includes a person appointed to fill a 11.15 vacancy in an elective office. Service as an elected local 11.16 government official only includes service for the governmental 11.17 subdivision for which the official was elected by the 11.18 public-at-large. Service as an elected local government 11.19 official ceases and eligibility to participate terminates when 11.20 the person ceases to be an elected official. An elected local 11.21 government official does not include an elected county sheriff. 11.22 (c)Elected local government officials, physicians, first11.23response personnel and emergency medical service personnel, and11.24rescue squad personnelIndividuals otherwise eligible to 11.25 participate in the plan under this subdivision who are currently 11.26 covered by a public or private pension plan because of their 11.27 employment or provision of services are not eligible to 11.28 participate in the public employees defined contribution plan. 11.29 (d) A former participant is a person who has terminated 11.30 eligible employment or service and has not withdrawn the value 11.31 of the person's individual account. 11.32 Sec. 5. Minnesota Statutes 2002, section 353D.02, is 11.33 amended by adding a subdivision to read: 11.34 Subd. 5. [ST. PAUL PORT AUTHORITY PERSONNEL.] Employees of 11.35 the port authority of the city of St. Paul who do not elect to 11.36 participate in the general employees retirement plan may elect 12.1 to participate in the plan by filing a membership application on 12.2 a form prescribed by the executive director of the association 12.3 authorizing contributions to be deducted from the employee's 12.4 salary. Participation begins on the first day of the pay period 12.5 for which the contributions were deducted or, if pay period 12.6 coverage dates are not provided, the date on which the 12.7 membership application or the contributions are received in the 12.8 office of the association, whichever is received first, if the 12.9 membership application is received by the association within 60 12.10 days of the receipt of the contributions. An election to 12.11 participate in the plan is irrevocable. 12.12 Sec. 6. [RED WING ENVIRONMENTAL LEARNING CENTER.] 12.13 (a) The legislature finds that the Red Wing environmental 12.14 learning center has a long and very close relationship with 12.15 independent school district No. 256, Red Wing, that Red Wing 12.16 environmental learning center employees have been treated as 12.17 independent school district No. 256, Red Wing, employees for 12.18 retirement coverage purposes for 33 years, and that the current 12.19 learning center employees would suffer a significant loss in 12.20 their pension benefit coverage if their membership in the 12.21 general employees retirement plan of the public employees 12.22 retirement association was disrupted. 12.23 (b) Notwithstanding the provisions of any other law to the 12.24 contrary, independent school district No. 256, Red Wing, may 12.25 certify to the executive director of the public employees 12.26 retirement association that employees of the Red Wing 12.27 environmental learning center are considered school district 12.28 employees solely for purposes of retirement coverage by the 12.29 general employees retirement plan under Minnesota Statutes, 12.30 chapter 353. This status must be accorded to all similarly 12.31 situated Red Wing environmental learning center employees. 12.32 Sec. 7. [PERA-GENERAL; PRIOR ST. PAUL PORT AUTHORITY 12.33 SERVICE CREDIT PURCHASE.] 12.34 Subdivision 1. [ELIGIBILITY.] A full-time salaried 12.35 employee or a permanent part-time salaried employee of the port 12.36 authority of the city of St. Paul who was employed by the port 13.1 authority during all or part of the period from July 1, 1993, to 13.2 July 1, 2003, and who is a member of the general employees 13.3 retirement plan of the public employees retirement association 13.4 may purchase allowable service credit from the general employees 13.5 retirement plan. 13.6 Subd. 2. [PURCHASABLE SERVICE; MAXIMUM.] (a) The service 13.7 credit that is purchasable under subdivision 1 is a period or 13.8 periods of employment by the port authority of the city of St. 13.9 Paul that would have been eligible service for coverage by the 13.10 general employees retirement plan of the public employees 13.11 retirement association if the service had been rendered after 13.12 July 1, 2003. 13.13 (b) The maximum period of allowable service credit in the 13.14 general employees retirement plan of the public employees 13.15 retirement association for purchase under this section is ten 13.16 years. 13.17 Subd. 3. [PURCHASE PAYMENT REQUIREMENT.] (a) To purchase 13.18 the service credit, the payment amount must be calculated under 13.19 Minnesota Statutes, section 356.55. 13.20 (b) Notwithstanding any provision of Minnesota Statutes, 13.21 section 356.55, to the contrary, the prior service credit 13.22 purchase payment may be made in whole or in part on an 13.23 institution-to-institution basis from a plan qualified under the 13.24 federal Internal Revenue Code, section 401(a), 401(k), or 13.25 414(h), or from an annuity qualified under the federal Internal 13.26 Revenue Code, section 403, or from a deferred compensation plan 13.27 under the federal Internal Revenue Code, section 457, to the 13.28 extent permitted by the applicable federal law. In no event may 13.29 a prior service credit purchase transfer be paid directly to the 13.30 person purchasing the service. 13.31 Subd. 4. [DOCUMENTATION; SERVICE CREDIT GRANT.] (a) An 13.32 eligible person described in subdivision 1 must provide any 13.33 documentation related to eligibility to make this service credit 13.34 purchase required by the executive director of the public 13.35 employees retirement association. 13.36 (b) Allowable service credit for the purchase period or 14.1 periods must be granted by the general employees retirement plan 14.2 of the public employees retirement association on behalf of the 14.3 eligible person upon receipt of the prior service credit 14.4 purchase payment amount. 14.5 Subd. 5. [SUNSET.] Authority to purchase service credit 14.6 under this section expires on December 31, 2004. 14.7 Sec. 8. [PRIOR SERVICE; VESTING.] 14.8 For purposes of vesting under Minnesota Statutes, section 14.9 353.29, subdivision 1, only, a full-time salaried employee or a 14.10 permanent part-time salaried employee of the port authority of 14.11 the city of St. Paul who was employed by the port authority on 14.12 July 1, 2003, and who is a member of the general employees 14.13 retirement plan of the public employees retirement association 14.14 may use months of employment with the port authority before that 14.15 date. This service may not be used to calculate a retirement 14.16 annuity or a disability benefit provided for under Minnesota 14.17 Statutes, chapter 353. 14.18 Sec. 9. [DEFINED CONTRIBUTION PLAN; ONETIME ELECTION.] 14.19 Employees of the port authority of the city of St. Paul who 14.20 do not exercise the right to become members of the general 14.21 employees retirement plan of the public employees retirement 14.22 association under section 1 may, by onetime election, choose to 14.23 participate in the public employees retirement association's 14.24 defined contribution plan under Minnesota Statutes, sections 14.25 353D.01 to 353D.12. The election is irrevocable. 14.26 Sec. 10. [EFFECTIVE DATE.] 14.27 (a) Section 2 with respect to the Red Wing environmental 14.28 learning center, and section 6 are effective the day after the 14.29 school board of independent school district No. 256, Red Wing, 14.30 and its chief clerical officer timely complete their compliance 14.31 with Minnesota Statutes, section 645.021, subdivisions 2 and 3, 14.32 and certification to the executive director of the public 14.33 employees retirement association. 14.34 (b) Section 2, with respect to the port authority of the 14.35 city of St. Paul, is effective the day following final enactment. 14.36 (c) Sections 1, 4, 5, 6, 8, and 9 are effective the day 15.1 following final enactment. 15.2 (d) Coverage by the general employees retirement plan of 15.3 the public employees retirement association under sections 1 and 15.4 2 commences July 1, 2003. 15.5 ARTICLE 5 15.6 PUBLIC HOSPITAL PRIVATIZATION 15.7 Section 1. Minnesota Statutes 2002, section 353F.02, 15.8 subdivision 4, is amended to read: 15.9 Subd. 4. [MEDICAL FACILITY.] "Medical facility" means: 15.10 (1) the Glencoe area health center; 15.11 (2) the Luverne public hospital; 15.12 (3) the Waconia-Ridgeview medical center;and15.13 (4) the Kanabec hospital; and 15.14 (5) the Renville county hospital in Olivia. 15.15 Sec. 2. [EFFECTIVE DATE.] 15.16 Section 1 is effective upon the latter of: 15.17 (1) the day after the governing body of Renville county and 15.18 its chief clerical officer timely complete their compliance with 15.19 Minnesota Statutes, section 645.021, subdivisions 2 and 3; and 15.20 (2) the first day of the month next following certification 15.21 to the Renville county board by the executive director of the 15.22 public employees retirement association that the actuarial 15.23 accrued liability of the special benefit coverage proposed for 15.24 extension to the privatized Renville county hospital employees 15.25 under section 1 does not exceed the actuarial gain otherwise to 15.26 be accrued by the public employees retirement association, as 15.27 calculated by the consulting actuary retained by the legislative 15.28 commission on pensions and retirement. The cost of the 15.29 actuarial calculations must be borne by the Renville county 15.30 hospital. 15.31 ARTICLE 6 15.32 GENERAL SERVICE CREDIT PURCHASES 15.33 Section 1. Laws 1999, chapter 222, article 16, section 16, 15.34 as amended by Laws 2002, chapter 392, article 7, section 1, is 15.35 amended to read: 15.36 Sec. 16. [REPEALER.] 16.1 Sections 1 to 13 are repealed on May 16,20032004. 16.2 Sec. 2. Laws 2000, chapter 461, article 4, section 4, is 16.3 amended to read: 16.4 Sec. 4. [EFFECTIVE DATE; SUNSET REPEALER.] 16.5 (a) Sections 1, 2, and 3 are effective on the day following 16.6 final enactment. 16.7 (b) Sections 1, 2, and 3 are repealed on May 16,20032004. 16.8 Sec. 3. Laws 2000, chapter 461, article 12, section 20, as 16.9 amended by Laws 2002, chapter 392, article 7, section 2, is 16.10 amended to read: 16.11 Sec. 20. [EFFECTIVE DATE.] 16.12 (a) Sections 4, 5, and 11 to 20 are effective on the day 16.13 following final enactment. 16.14 (b) Sections 1, 2, 3, and 6 to 10 are effective on the day 16.15 following final enactment and apply retroactively to a faculty 16.16 member of the Lake Superior College who was granted an extended 16.17 leave of absence under article 19, section 4, of the united 16.18 technical college educators master agreement for the 1999-2000 16.19 academic year prior to March 20, 2000. 16.20 (c) Sections 5, 11, and 14, paragraph (c), expire on May 16.21 16,20032004. 16.22 Sec. 4. Laws 2001, First Special Session chapter 10, 16.23 article 6, section 21, as amended by Laws 2002, chapter 392, 16.24 article 7, section 3, is amended to read: 16.25 Sec. 21. [EXPIRATION DATE.] 16.26 (a) The amendments in sections 1, 2, 3, 4, 10, 12, 16, 17, 16.27 18, 19, and 20 expire May 16,20032004. 16.28 (b) Sections 9 and 15 expire May 16,20032004. 16.29 Sec. 5. [PERA-GENERAL; SERVICE CREDIT PURCHASE 16.30 AUTHORIZED.] 16.31 (a) Notwithstanding any provision of law to the contrary, 16.32 an eligible person described in paragraph (b), (c), or (d) is 16.33 authorized to purchase allowable service credit from the general 16.34 employees retirement plan of the public employees retirement 16.35 association under Minnesota Statutes, section 356.55 or 356.551, 16.36 for the applicable period of prior employment as a council 17.1 member of the city of St. Louis Park which was not credited by 17.2 the general employees retirement plan of the public employees 17.3 retirement association as indicated in paragraph (e). 17.4 (b) An eligible person is a person who: 17.5 (1) is a current member of the St. Louis Park city council 17.6 and is a current member of the general employees retirement plan 17.7 of the public employees retirement association; 17.8 (2) was born on September 26, 1941; 17.9 (3) became a St. Louis Park city council member on January 17.10 1, 1996; and 17.11 (4) was not a member of the general employees retirement 17.12 plan of the public employees retirement association for the 17.13 period January 1, 1996, to January 29, 2000. 17.14 (c) An eligible person is a person who: 17.15 (1) is a current member of the St. Louis Park city council 17.16 and is a current member of the general employees retirement plan 17.17 of the public employees retirement association; 17.18 (2) was born on October 8, 1949; 17.19 (3) became a St. Louis Park city council member on June 8, 17.20 1999; and 17.21 (4) was not a member of the general employees retirement 17.22 plan of the public employees retirement association for the 17.23 period June 8, 1999, to January 12, 2002. 17.24 (d) An eligible person is a person who: 17.25 (1) is a current member of the St. Louis Park city council 17.26 and is a current member of the general employees retirement plan 17.27 of the public employees retirement association; 17.28 (2) was born on June 4, 1964; 17.29 (3) became a St. Louis Park city council member on November 17.30 18, 1997; and 17.31 (4) was not a member of the general employees retirement 17.32 plan of the public employees retirement association for the 17.33 period November 18, 1997, to March 9, 2002. 17.34 (e) The allowable service credit purchase period is limited 17.35 to the period of St. Louis Park city council service that was 17.36 not covered by the general employees retirement plan of the 18.1 public employees retirement association. 18.2 (f) The eligible person must provide all relevant 18.3 documentation of the applicability of the requirements set forth 18.4 in paragraph (b), (c), or (d) and any other applicable 18.5 information that the executive director of the public employees 18.6 retirement association may request. 18.7 (g) Allowable service credit for the purchase period must 18.8 be granted by the general employees retirement plan of the 18.9 public employees retirement association to the eligible person 18.10 upon receipt of the prior service credit purchase payment amount. 18.11 (h) Notwithstanding Minnesota Statutes, section 356.55, 18.12 subdivision 5, or 356.551, subdivision 2, whichever applies, the 18.13 city of St. Louis Park is not permitted to pay any portion of 18.14 the service credit purchase payment amount. 18.15 (i) The prior service credit purchase authority expires on 18.16 July 1, 2004, or on the date of the termination of active St. 18.17 Louis Park city council service by the eligible person, 18.18 whichever occurs earlier. 18.19 Sec. 6. [REPEALER.] 18.20 Minnesota Statutes 2002, sections 354.541 and 354A.109, are 18.21 repealed on May 16, 2004. 18.22 Sec. 7. [EFFECTIVE DATE.] 18.23 Sections 1 to 6 are effective on the day following final 18.24 enactment. 18.25 ARTICLE 7 18.26 SUPPLEMENTAL PENSION PLAN COVERAGE 18.27 Section 1. Minnesota Statutes 2002, section 356.24, 18.28 subdivision 1, is amended to read: 18.29 Subdivision 1. [RESTRICTION; EXCEPTIONS.] It is unlawful 18.30 for a school district or other governmental subdivision or state 18.31 agency to levy taxes for, or to contribute public funds to a 18.32 supplemental pension or deferred compensation plan that is 18.33 established, maintained, and operated in addition to a primary 18.34 pension program for the benefit of the governmental subdivision 18.35 employees other than: 18.36 (1) to a supplemental pension plan that was established, 19.1 maintained, and operated before May 6, 1971; 19.2 (2) to a plan that provides solely for group health, 19.3 hospital, disability, or death benefits; 19.4 (3) to the individual retirement account plan established 19.5 by chapter 354B; 19.6 (4) to a plan that provides solely for severance pay under 19.7 section 465.72 to a retiring or terminating employee; 19.8 (5) for employees other than personnel employed by the 19.9 board of trustees of the Minnesota state colleges and 19.10 universities and covered under the higher education supplemental 19.11 retirement plan under chapter 354C, if the supplemental plan 19.12 coverage is provided for in a personnel policy of the public 19.13 employer or in the collective bargaining agreement between the 19.14 public employer and the exclusive representative of public 19.15 employees in an appropriate unit, in an amount matching employee 19.16 contributions on a dollar for dollar basis, but not to exceed an 19.17 employer contribution of $2,000 a year per employee; 19.18 (i) to the state of Minnesota deferred compensation plan 19.19 under section 352.96; or 19.20 (ii) in payment of the applicable portion of the 19.21 contribution made to any investment eligible under section 19.22 403(b) of the Internal Revenue Code, if the employing unit has 19.23 complied with any applicable pension plan provisions of the 19.24 Internal Revenue Code with respect to the tax-sheltered annuity 19.25 program during the preceding calendar year; 19.26 (6) for personnel employed by the board of trustees of the 19.27 Minnesota state colleges and universities and not covered by 19.28 clause (5), to the supplemental retirement plan under chapter 19.29 354C, if the supplemental plan coverage is provided for in a 19.30 personnel policy or in the collective bargaining agreement of 19.31 the public employer with the exclusive representative of the 19.32 covered employees in an appropriate unit, in an amount matching 19.33 employee contributions on a dollar for dollar basis, but not to 19.34 exceed an employer contribution of $2,700 a year for each 19.35 employee; 19.36 (7) to a supplemental plan or to a governmental trust to 20.1 save for postretirement health care expenses qualified for 20.2 tax-preferred treatment under the Internal Revenue Code, if the 20.3 supplemental plan coverage is provided for in a personnel policy 20.4 or in the collective bargaining agreement of a public employer 20.5 with the exclusive representative of the covered employees in an 20.6 appropriate unit; 20.7 (8) to the laborer's national industrial pension fund for 20.8 the employees of a governmental subdivision who are covered by a 20.9 collective bargaining agreement that provides for coverage by 20.10 that fund and that sets forth a fund contribution rate, but not 20.11 to exceed an employer contribution of $2,000 per year per 20.12 employee; 20.13 (9) to the plumbers' and pipefitters' national pension fund 20.14 or to a plumbers' and pipefitters' local pension fund for the 20.15 employees of a governmental subdivision who are covered by a 20.16 collective bargaining agreement that provides for coverage by 20.17 that fund and that sets forth a fund contribution rate, but not 20.18 to exceed an employer contribution of $2,000 per year per 20.19 employee; 20.20 (10) to the international union of operating engineers 20.21 pension fund for the employees of a governmental subdivision who 20.22 are covered by a collective bargaining agreement that provides 20.23 for coverage by that fund and that sets forth a fund 20.24 contribution rate, but not to exceed an employer contribution of 20.25 $2,000 per year per employee; or 20.26 (11) to a supplemental plan organized and operated under 20.27 the federal Internal Revenue Code, as amended, that is wholly 20.28 and solely funded by the employee's accumulated sick leave, 20.29 accumulated vacation leave, and accumulated severance pay. 20.30 Sec. 2. [EFFECTIVE DATE.] 20.31 Section 1 is effective the day after final enactment. 20.32 ARTICLE 8 20.33 GENERAL RETIREMENT CHANGES 20.34 Section 1. Minnesota Statutes 2002, section 356B.05, is 20.35 amended to read: 20.36 356B.05 [PUBLIC PENSION ADMINISTRATION LEGISLATION.] 21.1 (a) Proposed administrative legislation recommended by or 21.2 on behalf of the Minnesota state retirement system, the public 21.3 employees retirement association, the teachers retirement 21.4 association, the Minneapolis employees retirement fund, or a 21.5 first class city teachers retirement fund association, and 21.6 proposed retirement-related legislation recommended by the 21.7 Minnesota state colleges and universities system must be 21.8 presented to the legislative commission on pensions and 21.9 retirement, the state and local governmental operations 21.10 committee of the senate, and the governmental operations and 21.11 veterans affairs policy committee of the house of 21.12 representatives on or before October 1 of each year in order for 21.13 the proposed administrative legislation to be acted upon during 21.14 the upcoming legislative session. The executive director or the 21.15 deputy executive director of the legislative commission on 21.16 pensions and retirement shall provide written comments on the 21.17 proposed administrative provisions to the public pension plans 21.18 by November 15 of each year. 21.19 (b) Proposed administrative legislation recommended by or 21.20 on behalf of a public employee pension plan or system under 21.21 paragraph (a) must address provisions: 21.22 (1) authorizing allowable service credit for leaves of 21.23 absence and related circumstances; 21.24 (2) governing offsets or deductions from the amount of 21.25 disability benefits; 21.26 (3) authorizing the purchase of allowable service credit 21.27 for prior uncredited periods; 21.28 (4) governing subsequent employment earnings by reemployed 21.29 annuitants; and 21.30 (5) authorizing retroactive effect for retirement annuity 21.31 or benefit applications. 21.32 (c) Where possible and desirable, taking into account the 21.33 differences among the public pension plans in existing law and 21.34 the unique characteristics of the individual public pension fund 21.35 memberships, uniform provisions relating to paragraph (b) for 21.36 all applicable public pension plans must be presented for 22.1 consideration during the legislative session. Supporting 22.2 documentation setting forth the policy rationale for each set of 22.3 uniform provisions must accompany the proposed administrative 22.4 legislation. 22.5 ARTICLE 9 22.6 STATEWIDE RESTRUCTURED TEACHER 22.7 RETIREMENT PLAN ACTUARIAL STUDY 22.8 Section 1. [ACTUARIAL STUDY OF COSTS TO RESTRUCTURE 22.9 TEACHER PLANS.] 22.10 Subdivision 1. [STUDY MANDATED.] The actuary retained by 22.11 the legislative commission on pensions and retirement shall 22.12 prepare an additional actuarial valuation report, using the 22.13 results of the 2003 actuarial valuation reports prepared under 22.14 Minnesota Statutes, section 356.215, that considers the 22.15 feasibility of restructuring the Minnesota teachers retirement 22.16 association, the Minneapolis teachers retirement fund 22.17 association, the St. Paul teachers retirement fund association, 22.18 and the Duluth teachers retirement plan and fund association 22.19 into a new restructured fund. 22.20 Subd. 2. [CONTENTS OF STUDY.] The actuarial valuation 22.21 report must be based on the proposals put forth in the report 22.22 mandated by the legislature in Laws 2001, First Special Session 22.23 chapter 10, article 11, section 20, and filed February 15, 2002, 22.24 including changes to the postretirement adjustment, benefits, 22.25 and restructuring administrative costs and including asset 22.26 transfers. 22.27 Subd. 3. [INFORMATION PROVIDED.] The executive director of 22.28 the teachers retirement association, the executive secretary of 22.29 the Duluth teachers retirement fund association, the executive 22.30 director of the St. Paul teachers retirement fund association, 22.31 and the executive director of the Minneapolis teachers 22.32 retirement fund association must consult with the task force 22.33 established under Laws 2001, First Special Session chapter 10, 22.34 article 11, section 20, and must provide the commission-retained 22.35 actuary with all necessary information requested for the 22.36 preparation of this report. 23.1 Subd. 4. [COSTS.] The cost of the actuarial valuation 23.2 report mandated in this section will be paid by the pension 23.3 funds named in this legislation. The cost must be allocated 23.4 equally between the four pension funds. The executive director 23.5 of the Minneapolis teachers retirement fund association shall 23.6 serve as the fiscal agent for this study, shall pay its cost, 23.7 and shall be reimbursed by the other three retirement funds for 23.8 their appropriate share. 23.9 Subd. 5. [FILING DATE.] The report must be filed by 23.10 January 15, 2004, with the chair of the legislative commission 23.11 on pensions and retirement, the chair of the senate committee on 23.12 state and local government operations, and the chair of the 23.13 house committee on government operations and veterans affairs 23.14 policy. 23.15 Sec. 2. [EFFECTIVE DATE.] 23.16 Section 1 is effective on the day following final enactment. 23.17 ARTICLE 10 23.18 LOCAL RETIREMENT PLAN CHANGES 23.19 Section 1. Minnesota Statutes 2002, section 383B.49, is 23.20 amended to read: 23.21 383B.49 [SUPPLEMENTAL RETIREMENT BENEFITS; REDEMPTION OF 23.22 SHARES.] 23.23 When requested to do so, in writing, on forms provided by 23.24 the county, by a participant, surviving spouse, a guardian of a 23.25 surviving child or a personal representative, whichever is 23.26 applicable, the county of Hennepin shall redeem shares in the 23.27 accounts of the Minnesota supplemental investment fund standing 23.28 in a participant's share account record under the following 23.29 circumstances and in accordance with the laws and regulations 23.30 governing the Minnesota supplemental investment fund: 23.31 (1) A participant who is no longer employed by the county 23.32 of Hennepin is entitled to receive the cash realized on the 23.33 redemption of the shares to the credit of the participant's 23.34 share account record of the person. The participant may request 23.35 the redemption of all or a portion of the shares in the 23.36 participant's share account record of the person, but may not 24.1 request more than one redemption in any one calendar year. If 24.2 only a portion of the shares in the participant's share account 24.3 record is requested to be redeemed the person may request to 24.4 redeem not less than 20 percent of the shares in any one 24.5 calendar year and the redemption must be completed in no more 24.6 than five years. An election is irrevocable except that a 24.7 participant may request an amendment of the election to redeem 24.8 all of the person's remaining shares. All requests under this 24.9 paragraph are subject to application to and approval of the 24.10 Hennepin countyboardadministrator, initsthe sole 24.11 discretion of the administrator. 24.12 (2) In the event of the death of a participant leaving a 24.13 surviving spouse, the surviving spouse is entitled to receive 24.14 the cash realized on the redemption of all or a portion of the 24.15 shares in the participant's share account record of the deceased 24.16 spouse, but in no event may the spouse request more than one 24.17 redemption in each calendar year. If only a portion of the 24.18 shares in the participant's share account record is requested to 24.19 be redeemed, the surviving spouse may request the redemption of 24.20 not less than 20 percent of the shares in any one calendar 24.21 year. Redemption must be completed in no more than five years. 24.22 An election is irrevocable except that the surviving spouse may 24.23 request an amendment of the election to redeem all of the 24.24 participant's remaining shares. All requests under this 24.25 paragraph are subject to application to and approval of the 24.26 Hennepin countyboardadministrator, initsthe sole 24.27 discretion of the administrator. Upon the death of the 24.28 surviving spouse, any shares remaining in the participant's 24.29 share account record must be redeemed by the county of Hennepin 24.30 and the cash realized from the redemption distributed to the 24.31 estate of the surviving spouse. 24.32 (3) In the event of the death of a participant leaving no 24.33 surviving spouse, but leaving a minor surviving child or minor 24.34 surviving children, the guardianship estate of the minor child 24.35 is, or the guardianship estates of the minor children are, 24.36 entitled to receive the cash realized on the redemption of all 25.1 shares to the credit of the participant's share account record 25.2 of the deceased participant. In the event of minor surviving 25.3 children, the cash realized must be paid in equal shares to the 25.4 guardianship estates of the minor surviving children. 25.5 (4) In the event of the death of a participant leaving no 25.6 surviving spouse and no minor surviving children, the estate of 25.7 the deceased participant is entitled to receive the cash 25.8 realized on the redemption of all shares to the credit of the 25.9 participant's share account record of the deceased participant. 25.10 Sec. 2. Minnesota Statutes 2002, section 383B.493, is 25.11 amended to read: 25.12 383B.493 [WITHDRAWAL FROM PARTICIPATION.] 25.13 Notwithstanding Laws 1982, chapter 450, or any other law to 25.14 the contrary, a Hennepin county employee participating in the 25.15 Hennepin county supplemental retirement program pursuant to Laws 25.16 1982, chapter 450 may, in the event of an unforeseeable 25.17 emergency, apply to the county to discontinue participation in 25.18 the program. Employees who are no longer participating in the 25.19 program may apply for the redemption of all shares credited to 25.20 their share account record. Applications are subject to 25.21 approval of the Hennepin countyboard of commissioners25.22 administrator initsthe sole discretion of the administrator. 25.23 For the purposes of this section, the term "unforeseeable 25.24 emergency" shall mean a severe financial hardship to the 25.25 participant resulting from a sudden and unexpected illness or 25.26 accident of the participant or a person dependent upon the 25.27 participant, loss of participant's property due to casualty, or 25.28 other similar extraordinary and unforeseeable circumstances 25.29 arising as a result of events beyond the control of the 25.30 participant. Applications based on foreseeable expenditures 25.31 normally budgetable shall not be approved. A participant 25.32 exercising the option provided by this section shall be 25.33 ineligible for further participation in the supplemental 25.34 retirement program. 25.35 Sec. 3. [EVELETH RETIRED POLICE AND FIRE TRUST FUND; AD 25.36 HOC POSTRETIREMENT ADJUSTMENT.] 26.1 In addition to the current pensions and other retirement 26.2 benefits payable, the pensions and retirement benefits payable 26.3 to retired police officers and firefighters and their surviving 26.4 spouses by the Eveleth police and fire trust fund are increased 26.5 by $100 per month. Increases are retroactive to January 1, 2003. 26.6 Sec. 4. [EFFECTIVE DATE.] 26.7 (a) Sections 1 and 2 are effective upon approval by the 26.8 Hennepin county board of commissioners and compliance with 26.9 Minnesota Statutes, section 645.021. 26.10 (b) Section 3 is effective on the day after the date on 26.11 which the Eveleth city council and the chief clerical officer of 26.12 the city of Eveleth comply with Minnesota Statutes, section 26.13 645.021, subdivisions 2 and 3. 26.14 ARTICLE 11 26.15 MINNEAPOLIS FIREFIGHTERS RELIEF 26.16 ASSOCIATION CHANGES 26.17 Section 1. Minnesota Statutes 2002, section 423C.03, 26.18 subdivision 3, is amended to read: 26.19 Subd. 3. [COMPENSATION OF OFFICERS AND BOARD MEMBERS.] 26.20 Notwithstanding any other law to the contrary, the association 26.21 may provide for payment of the following salaries to its 26.22 officers and board members: 26.23 (1) the executive secretary may receive a salary not 26.24 exceeding3050 percent of the maximum salary of a first grade 26.25 firefighter; 26.26 (2) the president may receive a salary not exceeding ten 26.27 percent of the maximum salary of a first grade firefighter; and 26.28 (3) all other elected members of the board may receive a 26.29 salary not exceeding 2.5 percent of the maximum salary of a 26.30 first grade firefighter. 26.31 Sec. 2. Minnesota Statutes 2002, section 423C.08, is 26.32 amended to read: 26.33 423C.08 [MEMBER CONTRIBUTION REFUND TO BENEFICIARY UPON 26.34 DEATH.] 26.35 If an active, deferred, or retired member of the 26.36 association dies and no survivor benefit is payable, the 27.1 designated beneficiary of the decedent or, if none, the legal 27.2 representative of the estate of the decedent is entitled, upon 27.3 application, to a refund. The refund shall be an amount equal 27.4 to the member contributions to the credit of the decedent, plus 27.5 interest on those contributions at an annual compounded rate of 27.6 five percent from the first day of the month following the date 27.7 of the contribution to the first day of the month following the 27.8 date of death of the decedent, reduced by the sum of any service 27.9 pension or disability benefit previously paid by the fund to the 27.10 decedent. 27.11 Sec. 3. [INTENT.] 27.12 Section 2 is intended to bring the Minneapolis firefighters 27.13 relief association's statutory provision which provides for a 27.14 refund of member contributions where the decedent does not leave 27.15 a surviving spouse or children in conformance with Minnesota 27.16 Statutes 2002, section 423A.18. 27.17 Sec. 4. [EFFECTIVE DATE.] 27.18 (a) The board of the Minneapolis firefighters relief 27.19 association may increase the salary of the executive secretary 27.20 subject to the applicable maximum set forth in section 1. 27.21 (b) Any salary increase under paragraph (a) may be 27.22 effective on September 1, 2002, or any time thereafter as 27.23 designated by the relief association board providing that the 27.24 requirements specified in section 1 are satisfied during the 27.25 applicable time period. 27.26 (c) Section 2 is effective retroactive to September 25, 27.27 2001. Section 3 is effective on the day following final 27.28 enactment. 27.29 ARTICLE 12 27.30 VOLUNTEER FIREFIGHTER RELIEF 27.31 ASSOCIATION CHANGES 27.32 Section 1. Minnesota Statutes 2002, section 424A.02, 27.33 subdivision 3, is amended to read: 27.34 Subd. 3. [FLEXIBLE SERVICE PENSION MAXIMUMS.] (a) Annually 27.35 on or before August 1of each yearas part of the certification 27.36 of the financial requirements and minimum municipal 28.1 obligationmade pursuant todetermined under section 69.772, 28.2 subdivision 4, or 69.773, subdivision 5, as applicable, the 28.3 secretary or some other official of the relief association 28.4 designated in the bylaws of each relief association shall 28.5 calculate and certify to the governing body of the applicable 28.6 qualified municipality the average amount of available financing 28.7 per active covered firefighter for the most recent three-year 28.8 period. The amount of available financing shall include any 28.9 amounts of fire state aid received or receivable by the relief 28.10 association, any amounts of municipal contributions to the 28.11 relief association raised from levies on real estate or from 28.12 other available revenue sources exclusive of fire state aid, and 28.13 one-tenth of the amount of assets in excess of the accrued 28.14 liabilities of the relief association calculatedpursuant to28.15sectionsunder section 69.772, subdivision 2; 69.773, 28.16 subdivisions 2 and 4; or 69.774, subdivision 2, if any. 28.17 (b) The maximum service pension which the relief 28.18 association has authority to provide for in its bylaws for 28.19 payment to a member retiring after the calculation date when the 28.20 minimum age and service requirements specified in subdivision 1 28.21 are met must be determined using the table in paragraph (c) or 28.22 (d), whichever applies. 28.23 (c) For a relief association where the governing bylaws 28.24 provide for a monthly service pension to a retiring member, the 28.25 maximum monthly service pension amount per month for each year 28.26 of service credited that may be provided for in the bylaws is 28.27 the maximum service pension figure corresponding to the average 28.28 amount of available financing per active covered firefighter: 28.29 Minimum Average Amount of Maximum Service Pension 28.30 Available Financing per Amount Payable per Month 28.31 Firefighter for Each Year of Service 28.32 $... $ .25 28.33 42 .50 28.34 84 1.00 28.35 126 1.50 28.36 168 2.00 29.1 209 2.50 29.2 252 3.00 29.3 294 3.50 29.4 335 4.00 29.5 378 4.50 29.6 420 5.00 29.7 503 6.00 29.8 587 7.00 29.9 672 8.00 29.10 755 9.00 29.11 839 10.00 29.12 923 11.00 29.13 1007 12.00 29.14 1090 13.00 29.15 1175 14.00 29.16 1259 15.00 29.17 1342 16.00 29.18 1427 17.00 29.19 1510 18.00 29.20 1594 19.00 29.21 1677 20.00 29.22 1762 21.00 29.23 1845 22.00 29.24 1888 22.50 29.25 1929 23.00 29.26 2014 24.00 29.27 2098 25.00 29.28 2183 26.00 29.29 2267 27.00 29.30 2351 28.00 29.31 2436 29.00 29.32 2520 30.00 29.33 2604 31.00 29.34 2689 32.00 29.35 2773 33.00 29.36 2857 34.00 30.1 2942 35.00 30.2 3026 36.00 30.3 3110 37.00 30.439633194 38.00 30.540473278 39.00 30.641373362 40.00 30.7Effective beginning December 31, 2000:30.842273446 41.00 30.943173530 42.00 30.1044073614 43.00 30.1144973698 44.00 30.12Effective beginning December 31, 2001:30.1345873782 45.00 30.1446773866 46.00 30.1547673950 47.00 30.1648574034 48.00 30.17Effective beginning December 31, 2002:30.1849474118 49.00 30.1950374202 50.00 30.2051274286 51.00 30.2152174370 52.00 30.22 Effective beginning December 31, 2003: 30.2353074454 53.00 30.2453974538 54.00 30.2554874622 55.00 30.2655774706 56.00 30.27 (d) For a relief association in which the governing bylaws 30.28 provide for a lump sum service pension to a retiring member, the 30.29 maximum lump sum service pension amount for each year of service 30.30 credited that may be provided for in the bylaws is the maximum 30.31 service pension figure corresponding to the average amount of 30.32 available financing per active covered firefighter for the 30.33 applicable specified period: 30.34 Minimum Average Amount Maximum Lump Sum Service 30.35 of Available Financing Pension Amount Payable 30.36 per Firefighter for Each Year of Service 31.1 $.. $10 31.2 11 20 31.3 16 30 31.4 23 40 31.5 27 50 31.6 32 60 31.7 43 80 31.8 54 100 31.9 65 120 31.10 77 140 31.11 86 160 31.12 97 180 31.13 108 200 31.14 131 240 31.15 151 280 31.16 173 320 31.17 194 360 31.18 216 400 31.19 239 440 31.20 259 480 31.21 281 520 31.22 302 560 31.23 324 600 31.24 347 640 31.25 367 680 31.26 389 720 31.27 410 760 31.28 432 800 31.29 486 900 31.30 540 1000 31.31 594 1100 31.32 648 1200 31.33 702 1300 31.34 756 1400 31.35 810 1500 31.36 864 1600 32.1 918 1700 32.2 972 1800 32.3 1026 1900 32.4 1080 2000 32.5 1134 2100 32.6 1188 2200 32.7 1242 2300 32.8 1296 2400 32.9 1350 2500 32.10 1404 2600 32.11 1458 2700 32.12 1512 2800 32.13 1566 2900 32.14 1620 3000 32.15 1672 3100 32.16 1726 3200 32.17 1753 3250 32.18 1780 3300 32.19 1820 3375 32.20 1834 3400 32.21 1888 3500 32.22 1942 3600 32.23 1996 3700 32.24 2023 3750 32.25 2050 3800 32.26 2104 3900 32.27 2158 4000 32.28 2212 4100 32.29 2265 4200 32.30 2319 4300 32.31 2373 4400 32.32 2427 4500 32.33 2481 4600 32.34 2535 4700 32.35 2589 4800 32.36 2643 4900 33.1 2697 5000 33.2 2751 5100 33.3 2805 5200 33.4 2859 5300 33.5 2913 5400 33.6 2967 5500 33.7Effective beginning December 31, 2000:33.8 3021 5600 33.9 3075 5700 33.10 3129 5800 33.11 3183 5900 33.12 3237 6000 33.13Effective beginning December 31, 2001:33.14 3291 6100 33.15 3345 6200 33.16 3399 6300 33.17 3453 6400 33.18 3507 6500 33.19Effective beginning December 31, 2002:33.20 3561 6600 33.21 3615 6700 33.22 3669 6800 33.23 3723 6900 33.24 3777 7000 33.25 Effective beginning December 31, 2003: 33.26 3831 7100 33.27 3885 7200 33.28 3939 7300 33.29 3993 7400 33.30 4047 7500 33.31 (e) For a relief association in which the governing bylaws 33.32 provide for a monthly benefit service pension as an alternative 33.33 form of service pension payment to a lump sum service pension, 33.34 the maximum service pension amount for each pension payment type 33.35 must be determined using the applicable table contained in this 33.36 subdivision. 34.1 (f) If a relief association establishes a service pension 34.2 in compliance with the applicable maximum contained in paragraph 34.3 (c) or (d) and the minimum average amount of available financing 34.4 per active covered firefighter is subsequently reduced because 34.5 of a reduction in fire state aid or because of an increase in 34.6 the number of active firefighters, the relief association may 34.7 continue to provide the prior service pension amount specified 34.8 in its bylaws, but may not increase the service pension amount 34.9 until the minimum average amount of available financing per 34.10 firefighter under the table in paragraph (c) or (d), whichever 34.11 applies, permits. 34.12 (g) No relief association is authorized to provide a 34.13 service pension in an amount greater than the largest applicable 34.14 flexible service pension maximum amount even if the amount of 34.15 available financing per firefighter is greater than the 34.16 financing amount associated with the largest applicable flexible 34.17 service pension maximum. 34.18 Sec. 2. [BENEFIT RATIFICATION; WHITE BEAR LAKE.] 34.19 Notwithstanding Minnesota Statutes, section 424A.02, 34.20 subdivisions 3 and 3a, to the contrary, the service pension 34.21 amounts specified in the bylaws of the White Bear Lake fire 34.22 department relief association following bylaw amendments in 34.23 January 1999 and prior to the effective date of this section are 34.24 ratified. 34.25 ARTICLE 13 34.26 PLYMOUTH VOLUNTEER FIREFIGHTER RELIEF 34.27 ASSOCIATION ANCILLARY BENEFIT CHANGES 34.28 Section 1. Laws 1978, chapter 685, section 1, as amended 34.29 by Laws 1979, chapter 201, section 41, is amended to read: 34.30 Section 1. [PLYMOUTH VOLUNTEER FIREFIGHTERS' RELIEF 34.31 ASSOCIATION.] 34.32 The bylaws of the Plymouth firefighter's relief association 34.33 may be amended to provide for payment of a disability pension in 34.34 an amountequal to $8.50 per month per year of service, to a34.35maximum of $255 per monthconsistent with the ancillary benefit 34.36 requirements specified in Minnesota Statutes, section 424A.02, 35.1 subdivision 9, to a firefighterqualified pursuant todetermined 35.2 to be disabled, as defined in the bylaws of the association and 35.3 under procedures specified in those bylaws. No member shall be 35.4 entitled to draw both a disability pension and a service pension. 35.5 Sec. 2. Laws 1978, chapter 685, section 2, is amended to 35.6 read: 35.7 Sec. 2. The Plymouth firefighter's relief association may 35.8 provide for a benefit to the surviving spouse of a volunteer 35.9 firefighter who died, providing that the surviving spouse 35.10 qualifies under the terms of the bylaws, such benefit to be paid35.11as the bylaws of the association may provide, except that the35.12bylaws may not provide for a spouse's benefit of more than35.13$127.50 per month, and provided the benefit shall cease as of35.14the date of the spouse's remarriageand the benefit is 35.15 consistent with ancillary benefit requirements specified in 35.16 Minnesota Statutes, section 424A.02, subdivision 9. 35.17 Sec. 3. Laws 1978, chapter 685, section 3, is amended to 35.18 read: 35.19 Sec. 3. The Plymouth firefighter's relief association may 35.20 pay a pension for the children of deceased members, as the 35.21 association's bylaws may provide, consistent with ancillary 35.22 benefit requirements specified in Minnesota Statutes, section 35.23 424A.02, subdivision 9. 35.24 Sec. 4. Laws 1978, chapter 685, section 6, is amended to 35.25 read: 35.26 Sec. 6. (a) The bylaws of the Plymouth firefighter's 35.27 relief association may further provide that when any active or 35.28 deferred member of the association or anypensioner who is a35.29former memberdisabilitant or service pension recipient dies, 35.30 there may be paid a death or funeral benefit to defray or assist 35.31 the family of the deceased with funeral expenses. 35.32 (b) A benefit paid under this section due to the death of 35.33 an active or deferred member must conform to Minnesota Statutes, 35.34 section 424A.02, subdivision 9. 35.35 (c) A death or funeral benefit may be paid under this 35.36 section to the family of a deceased disabilitant or service 36.1 pensioner notwithstanding Minnesota Statutes, section 424A.02, 36.2 subdivision 9, providing that liabilities relating to this 36.3 benefit are recognized in determinations of actuarial condition 36.4 and funding costs, as determined under section 69.772 or 69.773, 36.5 whichever is applicable. Notwithstanding any law to the 36.6 contrary, the association is authorized to use a load factor or 36.7 factors to recognize liabilities relating to funeral or death 36.8 benefits paid to the family of a deceased disabilitant or 36.9 service pensioner. Benefits are not payable under this 36.10 paragraph if the city council does not approve the load factor 36.11 or factors used in determinations of actuarial conditions and 36.12 funding costs. 36.13 Sec. 5. [REPEALER.] 36.14 Laws 1978, chapter 685, section 5, is repealed. 36.15 Sec. 6. [EFFECTIVE DATE.] 36.16 Sections 1 to 5 are effective on the day after the date on 36.17 which the Plymouth city council and the chief clerical officer 36.18 of the city of Plymouth complete in a timely manner their 36.19 compliance with Minnesota Statutes, section 645.021, 36.20 subdivisions 2 and 3. 36.21 ARTICLE 14 36.22 PRIOR SERVICE CREDIT PURCHASE PROVISIONS 36.23 Section 1. Laws 2000, chapter 461, article 19, section 6, 36.24 is amended to read: 36.25 Sec. 6. [MTRFA; PRIOR SERVICE CREDIT PURCHASE FOR 36.26 UNCREDITED TEACHING SERVICE PERIODS.] 36.27 (a) An eligible person described in paragraph (b) is 36.28 entitled to purchase allowable service credit from the 36.29 Minneapolis teachers retirement fund association basic program 36.30 for the periods of teaching employment specified in paragraph 36.31 (c) by making the payment required under Minnesota Statutes, 36.32 section 356.55. 36.33 (b) An eligible person is a person who: 36.34 (1) was employed by special school district No. 1 36.35 (Minneapolis) as a long call reserve teacher from October 1972 36.36 to June 1973 and was covered by the Minneapolis employees 37.1 retirement fund; 37.2 (2) was employed by special school district No. 1 37.3 (Minneapolis) as a school social worker at Franklin junior high 37.4 school from August 28, 1973, through June 12, 1974, and from 37.5 August 29, 1974, through June 11, 1975, without retirement 37.6 coverage; 37.7 (3) was employed by special school district No. 1 37.8 (Minneapolis) as a school social worker at North high school 37.9 from August 29, 1975, through December 19, 1975, covered by the 37.10 Minneapolis teachers retirement fund association; 37.11 (4) was retained by special school district No. 1 37.12 (Minneapolis) in the capacity of a school social worker at North 37.13 high school as an hourly wage social worker from August 1976 37.14 through June 1983 without retirement coverage; and 37.15 (5) is currently employed by Hennepin county covered by the 37.16 public employees retirement association. 37.17 (c) The periods for allowable service credit purchase are 37.18 August 28, 1973, through June 12, 1974; and August 29, 1974, 37.19 through June 11, 1975. 37.20 (d) An eligible person must provide any relevant 37.21 documentation related to eligibility to make this service credit 37.22 purchase required by the executive director of the Minneapolis 37.23 teachers retirement fund association. 37.24 (e) Allowable service credit for the purchase periods must 37.25 be granted by the Minneapolis teachers retirement fund 37.26 association to the account of the eligible person upon receipt 37.27 of the prior service credit purchase payment amount. Authority 37.28 provided by this section is voided if payment is not made before 37.29 December 31, 2003, or before commencing receipt of an annuity 37.30 from the Minneapolis teachers retirement fund association, 37.31 whichever is earlier. 37.32 (f) The prior service credit purchase paymentamount shall37.33be computed by the actuary retained by the legislative37.34commission on pensions and retirement. Thatcomputation must 37.35 give recognition, in applying the process stated in Minnesota 37.36 Statutes, section 356.55,give recognitionto the liabilities 38.1 that would be created in the Minneapolis teachers retirement 38.2 fund association and other Minnesota public pension funds due to 38.3 the service credit purchase. 38.4 (g) Following receipt of that purchase payment amount, the 38.5 executive director of the Minneapolis teachers retirement fund 38.6 association shall allocate and transmit that amount to the 38.7 applicable pension administrations, as determined under 38.8 paragraph (f). 38.9 Sec. 2. [TEACHERS RETIREMENT ASSOCIATION; SERVICE CREDIT 38.10 PURCHASE FOR SABBATICAL LEAVES.] 38.11 (a) Notwithstanding Minnesota Statutes, section 354.092, or 38.12 any other law to the contrary, an eligible person described in 38.13 paragraph (b) is entitled to purchase not more than three years 38.14 of allowable service credit from the teachers retirement 38.15 association for sabbatical leave as defined in Minnesota 38.16 Statutes, section 122A.49. 38.17 (b) An eligible person is a person who: 38.18 (1) worked as a teacher for independent school district No. 38.19 191, Burnsville-Eagan-Savage; 38.20 (2) was on sabbatical leave at some time between January 1, 38.21 1982, and December 31, 1989; and 38.22 (3) did not receive service credit for time on sabbatical 38.23 leave because the leave was not properly reported to the 38.24 teachers retirement association. 38.25 (c) An eligible person described in paragraph (b) must 38.26 apply with the executive director of the teachers retirement 38.27 association to make a service credit purchase under this 38.28 section. The application must be in writing and must include 38.29 all necessary documentation of the applicability of this section 38.30 and any other relevant information that the executive director 38.31 may require. 38.32 (d) Allowable service credit for the purchase periods must 38.33 be granted by the teachers retirement association to the account 38.34 of an eligible person upon receipt of the portion of the prior 38.35 service credit purchase payment amount payable under paragraph 38.36 (e) in a lump sum by the applicable eligible person. 39.1 (e) Notwithstanding Minnesota Statutes, section 356.55 or 39.2 356.551, whichever is applicable, an eligible person may pay 39.3 before September 1, 2003, or the date of termination from 39.4 service, whichever is earlier, an amount equal to the employee 39.5 contribution rate or rates in effect during the applicable 39.6 sabbatical leave period or periods specified in paragraph (b) 39.7 applied to the actual salary rate or rates in effect during that 39.8 period or periods, plus annual compound interest at the rate of 39.9 8.5 percent from the midpoint of each applicable sabbatical 39.10 leave period, to the date on which the payment is actually 39.11 made. Independent school district No. 191 must pay the 39.12 remaining balance of the prior service credit purchase payment 39.13 amount calculated under Minnesota Statutes, section 356.55 or 39.14 356.551, whichever is applicable, within 30 days of the payment 39.15 by an eligible person. The executive director of the teachers 39.16 retirement association must notify the superintendent of 39.17 independent school district No. 191 of its payment amount and 39.18 payment due date if an eligible person makes the required 39.19 payment. 39.20 (f) If independent school district No. 191 fails to pay its 39.21 portion of the required prior service credit purchase payment 39.22 amount, the executive director of the teachers retirement 39.23 association must notify the commissioner of finance of that fact 39.24 and the commissioner of finance must order that the required 39.25 employer payment be deducted from the next subsequent payment or 39.26 payments of state education aid to the school district and be 39.27 transmitted to the teachers retirement association. 39.28 Sec. 3. [SPECIAL SCHOOL DISTRICT NO. 1; QUALIFIED 39.29 PART-TIME TEACHER PROGRAM RETROACTIVE COVERAGE.] 39.30 (a) An eligible individual is a teacher who: 39.31 (1) was born on March 10, 1950; 39.32 (2) is a basic plan member of the Minneapolis teachers 39.33 retirement fund association; 39.34 (3) first became a Minneapolis teachers retirement fund 39.35 association member in August 1972; and 39.36 (4) entered into a job sharing arrangement with another 40.1 Minneapolis teachers retirement fund association member for the 40.2 2001-2002 school year but failed to enter into a qualified 40.3 part-time teacher agreement for that school year. 40.4 (b) Notwithstanding any provision of Minnesota Statutes, 40.5 section 354A.094, to the contrary, an eligible individual 40.6 described in paragraph (a) is authorized to receive full-time 40.7 salary and service credit in the Minneapolis teachers retirement 40.8 fund association basic program for service under Minnesota 40.9 Statutes, section 354A.094, for the 2001-2002 school year, if 40.10 all conditions required by this section are met. 40.11 (c) To receive the full-time equivalent service and salary 40.12 credit for the 2001-2002 school year provided by this section, 40.13 an eligible individual described in paragraph (a) must pay the 40.14 applicable employee contribution under Minnesota Statutes, 40.15 section 354A.12, subdivision 1, on the difference between the 40.16 amount of the person's compensation from which employee 40.17 contributions were actually deducted and the amount of the 40.18 person's full-time equivalent salary under Minnesota Statutes, 40.19 section 354A.094, subdivision 4. The employee must pay 8.5 40.20 percent interest, compounded daily, on all employee 40.21 contributions required under this section, from the date the 40.22 contributions would have occurred if the individual were 40.23 employed on a full-time basis, until paid. 40.24 (d) If payment is made under paragraph (c), upon 40.25 notification from the Minneapolis teachers retirement fund 40.26 association, special school district No. 1, Minneapolis, must 40.27 pay the applicable employer and additional employer 40.28 contributions under Minnesota Statutes, section 354A.12, 40.29 subdivision 2a, on the difference between the person's full-time 40.30 equivalent salary and actual salary upon which contributions 40.31 were previously made for the eligible individual. The employer 40.32 must pay 8.5 percent interest, compounded daily, on all employer 40.33 and employer additional contributions required under this 40.34 section, from the date the contributions would have occurred if 40.35 the individual were employed on a full-time basis, until paid. 40.36 (e) Payments under this section must be made in a lump sum 41.1 to the Minneapolis teachers retirement fund association. 41.2 Payment under paragraph (c) must occur on or before June 30, 41.3 2003, or the effective date of retirement, whichever is 41.4 earlier. Payment by the employer under paragraph (d) must be 41.5 made within 30 days following payment by the eligible employee. 41.6 (f) The eligible person must provide any relevant 41.7 documentation that the Minneapolis teachers retirement fund 41.8 association may request. 41.9 ARTICLE 15 41.10 VARIOUS ONE PERSON AND SMALL GROUP 41.11 RETIREMENT CHANGES 41.12 Section 1. [TEACHERS RETIREMENT ASSOCIATION; COVERAGE 41.13 ELECTION OPTION DEADLINE EXTENSION.] 41.14 (a) Notwithstanding any provision of Minnesota Statutes, 41.15 section 354B.21, subdivision 2 or 3 to the contrary, an eligible 41.16 person described in paragraph (b) is entitled to elect to 41.17 continue retirement coverage by the teachers retirement 41.18 association. 41.19 (b) An eligible person is a person who: 41.20 (1) was born on May 5, 1960; 41.21 (2) was first employed as a teacher for the 1982-1983 41.22 school year; 41.23 (3) was employed as a teacher by independent school 41.24 district No. 345, New London-Spicer, from the 1984-1985 school 41.25 year until the 1994-1995 school year; 41.26 (4) was employed as a teacher by independent school 41.27 district No. 858, St. Charles, from the 1995-1996 school year 41.28 through the 2001-2002 school year; 41.29 (5) was employed by the Riverland community college on 41.30 August 22, 2002; and 41.31 (6) received a Minnesota state colleges and universities 41.32 system retirement plan election form on August 27, 2002, but did 41.33 not file the form by December 4, 2002, and received individual 41.34 retirement account retirement plan coverage by default. 41.35 (c) The election of teachers retirement coverage must be 41.36 made in writing by the eligible person and must be made on or 42.1 before September 1, 2003. 42.2 (d) If an election of teachers retirement association 42.3 coverage is made under this section, the Minnesota state 42.4 colleges and universities system shall transfer from the 42.5 individual retirement account plan member and employer 42.6 contributions equal to ten percent of the eligible person's 42.7 covered salary as an employee of the system from August 22, 42.8 2002, to the date of the coverage election under this section, 42.9 plus annual interest at the rate of 8.5 percent. Upon the 42.10 contribution transfer, the teachers retirement association shall 42.11 credit the eligible person with allowable and formula service 42.12 credit for the period August 22, 2002, to the date of the 42.13 coverage election. 42.14 Sec. 2. [DULUTH TEACHERS RETIREMENT FUND ASSOCIATION; 42.15 AUTHORIZATION TO MAKE PAYMENT OF EMPLOYEE AND EMPLOYER 42.16 CONTRIBUTIONS.] 42.17 (a) Notwithstanding any provision of law to the contrary, 42.18 an eligible person described in paragraph (b) is authorized to 42.19 pay employee and employer contributions to the Duluth teachers 42.20 retirement fund association for the period described in 42.21 paragraph (c). 42.22 (b) An eligible person is a person who: 42.23 (1) was born on October 13, 1949; 42.24 (2) was initially employed by independent school district 42.25 No. 709, Duluth, on December 4, 1972; 42.26 (3) is a current employee of independent school district 42.27 No. 709, Duluth, and is a current member of the Duluth teachers 42.28 retirement fund association; 42.29 (4) was employed on a part-time basis by independent school 42.30 district No. 709, Duluth, for the 2001-2002 school year; and 42.31 (5) was not notified of the right to pay employee and 42.32 employer contributions to the Duluth teachers retirement fund 42.33 association under Minnesota Statutes, section 354A.094, while 42.34 employed on a part-time basis for the 2001-2002 school year. 42.35 (c) The purchase period is September 4, 2001, to June 7, 42.36 2002. 43.1 (d) The payment amount shall be the product of the 43.2 following: 43.3 (1) the total of the employee and employer contribution 43.4 rates of the Duluth teachers retirement fund association 43.5 prescribed in Minnesota Statutes, section 354A.12; and 43.6 (2) the salary amount equal to the difference between the 43.7 salary the eligible person would have earned from independent 43.8 school district No. 709, Duluth, had the eligible person worked 43.9 on a full-time basis during the 2001-2002 school year and the 43.10 total salary the eligible person actually earned from 43.11 independent school district No. 709, Duluth, during the 43.12 2001-2002 school year. 43.13 (e) Interest is payable on the payment amount in paragraph 43.14 (d) using the preretirement interest rate assumption specified 43.15 in Minnesota Statutes, section 356.215, subdivision 8, 43.16 compounded annually, accruing from June 30, 2002, to the date 43.17 the payment is received in the office of the Duluth teachers 43.18 retirement fund association. 43.19 (f) Credit for the higher salary for the purchase period 43.20 must be granted by the Duluth teachers retirement fund 43.21 association to the eligible person upon receipt of payment of 43.22 the employee and employer contribution amount. 43.23 (g) Notwithstanding Minnesota Statutes, section 354A.094, 43.24 subdivision 4, independent school district No. 709, Duluth, is 43.25 not permitted to pay any portion of the payment amount. 43.26 (h) The authority to make payment of employee and employer 43.27 contributions expires 60 days after enactment or on the date of 43.28 the termination of active service by the eligible person, 43.29 whichever occurs earlier. 43.30 Sec. 3. [SURVIVOR BENEFITS.] 43.31 Notwithstanding any provision of Minnesota Statutes, 43.32 section 353.657, subdivision 1, requiring a specified period of 43.33 marriage to obtain survivor benefits, the surviving spouse of a 43.34 firefighter who was born on March 11, 1969, and who died in an 43.35 accident on February 6, 2000, is entitled to survivor benefits 43.36 provided in Minnesota Statutes, section 353.657. 44.1 Sec. 4. [MSRS-GENERAL; REFUND ELIGIBILITY IN CERTAIN 44.2 INSTANCES.] 44.3 Notwithstanding any provision of Minnesota Statutes, 44.4 section 352.22, subdivision 1, to the contrary, a person who 44.5 previously has been employed as a state employee, who was placed 44.6 on a medical leave of absence before April 1, 2002, and who was 44.7 still on the medical leave on April 1, 2003, is eligible to 44.8 receive a refund under Minnesota Statutes, section 352.22, if 44.9 the person has not again become a state employee covered by the 44.10 system on the refund application date. 44.11 Sec. 5. [PUBLIC EMPLOYEES RETIREMENT ASSOCIATION COVERAGE 44.12 TERMINATION.] 44.13 Subdivision 1. [ELIGIBILITY.] (a) An eligible individual 44.14 specified in paragraph (b) is authorized to apply for a 44.15 retirement annuity, provided necessary age and service 44.16 requirements are met, under Minnesota Statutes, section 353.29 44.17 or 353.30, as applicable, as further specified under subdivision 44.18 2. 44.19 (b) An eligible individual is an individual who: 44.20 (1) was employed as a Beltrami county employee and became a 44.21 member of the public employees retirement association general 44.22 plan due to that service on June 1, 1991; 44.23 (2) was elected to the Bemidji city council and took office 44.24 in January 2001; 44.25 (3) elected under law then applicable to have public 44.26 employees retirement association general plan coverage for the 44.27 city council elected service; and 44.28 (4) terminated Beltrami county employment but is unable to 44.29 commence receipt of a public employees retirement association 44.30 general plan annuity because of the continuing public employees 44.31 retirement association general plan coverage for the elected 44.32 city council service. 44.33 Subd. 2. [RETIREMENT ANNUITY.] (a) Notwithstanding an 44.34 irrevocable election to participate in the public employees 44.35 retirement association general plan as an elected official and 44.36 continuation of elected service, an eligible individual under 45.1 subdivision 1, paragraph (b), is deemed to have terminated 45.2 membership under Minnesota Statutes, section 353.01, subdivision 45.3 11b, following the termination of the Beltrami county employment. 45.4 (b) If the requirements of paragraph (a) are satisfied, the 45.5 eligible individual may apply for a retirement annuity under 45.6 Minnesota Statutes, section 353.29 or 353.30, as applicable. In 45.7 computing the annuity, the public employees retirement 45.8 association must exclude salary due to the elected Bemidji city 45.9 council service. Deferred annuity augmentation under Minnesota 45.10 Statutes, section 353.71, applies to this annuity. 45.11 Subd. 3. [TREATMENT OF BEMIDJI CITY COUNCIL CONTRIBUTIONS 45.12 TO THE PUBLIC EMPLOYEES RETIREMENT ASSOCIATION.] (a) All 45.13 employee contributions to the public employees retirement 45.14 association coordinated plan by an eligible individual in 45.15 subdivision 1, paragraph (b), due to the elected Bemidji city 45.16 council service, and all corresponding employer contributions, 45.17 must be determined. 45.18 (b) An eligible individual under subdivision 1, paragraph 45.19 (b), must elect, within one year of the effective date of this 45.20 section or upon termination of elective service, whichever is 45.21 earlier, a refund under Minnesota Statutes, section 353.34, 45.22 subdivision 2, of employee contributions determined under 45.23 paragraph (a), or coverage by the public employees defined 45.24 contribution plan under Minnesota Statutes, chapter 353D, as 45.25 further specified in paragraph (c). 45.26 (c) If public employee defined contribution plan coverage 45.27 is elected under paragraph (b), contributions to that plan 45.28 commence as of the first day of the pay period following this 45.29 election, and accumulated employee and employer contributions 45.30 determined under paragraph (a) must be transferred with six 45.31 percent annual interest to an account for the eligible 45.32 individual in the public employees defined contribution plan. 45.33 (d) If no election is made by an eligible individual by the 45.34 required date in paragraph (b), the individual is assumed to 45.35 have elected the refund indicated in paragraph (b). 45.36 (e) Upon an election under paragraph (b), or a mandatory 46.1 refund under paragraph (d), all rights in the public employees 46.2 retirement association coordinated plan due to elected Bemidji 46.3 city council service are forfeited and may not be reestablished. 46.4 Sec. 6. [EFFECTIVE DATE.] 46.5 (a) Sections 1 to 5 are effective on the day following 46.6 final enactment. 46.7 (b) Section 3 applies retroactively to the surviving spouse 46.8 of a person who died on or after February 1, 2000.