Minnesota Legislature
HF 3127
1st Unofficial Engrossment - 82nd Legislature (2001 - 2002) Posted on 12/15/2009 12:00am
KEY: stricken = removed, old language.
underscored = added, new language.
1.1 A bill for an act 1.2 relating to retirement; various retirement plans; 1.3 clarifying the laws applicable to the remaining local 1.4 police and paid firefighter pension plans; repealing 1.5 obsolete local police and paid firefighter pension 1.6 plan laws; providing public employee pension coverage 1.7 for certain foreign citizens; clarifying membership 1.8 eligibility and allowable service credit for the 1.9 public employees retirement association; requiring 1.10 membership for charter school teachers in the teachers 1.11 retirement association; providing for the payment of 1.12 unpaid closed charter school retirement contributions 1.13 from charter school lease aid; eliminating 1.14 contribution rate increases in the local government 1.15 correctional service retirement plan; establishing 1.16 provisions relating to employees of the Kanabec 1.17 hospital if the hospital is privatized; extending the 1.18 expiration date for certain prior service credit 1.19 purchase authorizations; recodifying social security 1.20 coverage provisions; implementing recommended changes 1.21 in salary actuarial assumptions; clarifying the 1.22 restrictions on supplemental and local pension plans 1.23 for plans funded from accumulated sick and vacation 1.24 leave; reorganizing and revising various general 1.25 retirement provisions; instructing the revisor of 1.26 statutes; authorizing the commissioner of 1.27 administration to lease pension fund facilities to 1.28 deferred compensation service providers; authorizing 1.29 certain volunteer firefighters to receive service 1.30 pensions or disability benefits without terminating 1.31 active service; authorizing a study of the creation of 1.32 a voluntary statewide volunteer firefighter retirement 1.33 plan; providing an accelerated optional annuity for an 1.34 eligible person; providing certain survivor benefits; 1.35 authorizing service credit grants; modifying powers of 1.36 the service cooperatives board of directors; allowing 1.37 a refund of a prior service credit payment; amending 1.38 Minnesota Statutes 2000, sections 69.77; 69.80; 1.39 123A.21, subdivision 5; 353.01, by adding a 1.40 subdivision; 353A.08, subdivision 6a; 353E.02, 1.41 subdivision 1, by adding a subdivision; 353E.03; 1.42 353F.02, subdivision 4; 354A.011, subdivision 27; 1.43 354A.12, subdivision 3d; 355.01, subdivisions 1, 3, 6, 1.44 8, by adding subdivisions; 355.02; 355.03; 355.05; 1.45 355.07; 355.08; 356.001; 356.20, subdivisions 1, 2, 3, 1.46 4, 4a; 356.215, as amended; 356.216; 356.217; 356.219; 2.1 356.22; 356.23; 356.24, subdivisions 1b, 1c, 2; 2.2 356.245; 356.25; 356.30; 356.302; 356.303; 356.32; 2.3 356.40; 356.41; 356.50; 356.55, as amended; 356.551; 2.4 356.611; 356.65, subdivision 2; 356.87; 356.89, 2.5 subdivision 3; 423A.17; 423A.171; 424A.02, subdivision 2.6 1; 424A.09; Minnesota Statutes 2001 Supplement, 2.7 sections 353.01, subdivisions 2a, 2b, 11b, 16; 353.27, 2.8 subdivisions 4, 11; 354.05, subdivision 2; 356.24, 2.9 subdivision 1; 356.555; 356.62; 356.65, subdivision 1; 2.10 Laws 1999, chapter 222, article 16, section 16; Laws 2.11 2000, chapter 461, article 10, section 3, as amended; 2.12 Laws 2000, chapter 461, article 12, section 20; Laws 2.13 2001, First Special Session chapter 10, article 6, 2.14 section 21; proposing coding for new law in Minnesota 2.15 Statutes, chapters 355; 356; proposing coding for new 2.16 law as Minnesota Statutes, chapter 356B; repealing 2.17 Minnesota Statutes 2000, sections 69.25; 69.26; 69.27; 2.18 69.28; 69.29; 69.30; 69.32; 69.361; 69.37; 69.38; 2.19 69.39; 69.40; 69.41; 69.42; 69.43; 69.44; 69.45; 2.20 69.46; 69.47; 69.48; 69.49; 69.50; 69.51; 69.52; 2.21 69.53; 69.62; 69.78; 297I.10, subdivision 2; 355.01, 2.22 subdivisions 2, 4, 5, 9, 10; 355.11; 355.12; 355.13; 2.23 355.14; 355.15; 355.16; 355.17; 355.201; 355.202; 2.24 355.203; 355.204; 355.205; 355.206; 355.207; 355.208; 2.25 355.209; 355.21; 355.22; 355.23; 355.24; 355.25; 2.26 355.26; 355.27; 355.28; 355.281; 355.282; 355.283; 2.27 355.284; 355.285; 355.286; 355.287; 355.288; 355.29; 2.28 355.291; 355.292; 355.293; 355.294; 355.295; 355.296; 2.29 355.297; 355.298; 355.299; 355.30; 355.311; 355.391; 2.30 355.392; 355.393; 355.41; 355.42; 355.43; 355.44; 2.31 355.45; 355.46; 355.48; 355.49; 355.50; 355.51; 2.32 355.52; 355.54; 355.55; 355.56; 355.57; 355.58; 2.33 355.59; 355.60; 355.61; 355.621; 355.622; 355.623; 2.34 355.624; 355.625; 355.626; 355.627; 355.628; 355.71; 2.35 355.72; 355.73; 355.74; 355.75; 355.76; 355.77; 2.36 355.78; 355.79; 355.80; 355.81; 355.90; 356.19; 2.37 356.305; 356.306; 356.31; 356.325; 356.35; 356.36; 2.38 356.37; 356.371, subdivisions 2, 3; 356.372; 356.38; 2.39 356.39; 356.45; 356.451; 356.452; 356.453; 356.454; 2.40 356.455; 356.615; 356.71; 356.80; 356.81; 356.86; 2.41 356.865; 356.88; 356.89; 423.37; 423.371; 423.372; 2.42 423.373; 423.374; 423.375; 423.377; 423.378; 423.379; 2.43 423.38; 423.381; 423.382; 423.383; 423.384; 423.385; 2.44 423.386; 423.387; 423.388; 423.389; 423.39; 423.391; 2.45 423.392; 423.801; 423.802; 423.803; 423.804; 423.805; 2.46 423.806; 423.808; 423.809; 423.810; 423.812; 423.813; 2.47 423.814; 423.90; 423A.03; 424.01; 424.02; 424.03; 2.48 424.04; 424.05; 424.06; 424.08; 424.14; 424.15; 2.49 424.16; 424.165; 424.17; 424.18; 424.19; 424.20; 2.50 424.21; 424.22; 424.23; 424.24; 424.25; 424.27; 2.51 424.28; 424.29; Minnesota Statutes 2001 Supplement, 2.52 sections 353.01, subdivision 39; 356.371, subdivision 2.53 1; 356.866; Special Laws 1889, chapter 425; Special 2.54 Laws 1891, chapter 11; Laws 1897, chapters 389; 390; 2.55 Laws 1915, chapter 68; Laws 1917, chapter 196; Laws 2.56 1919, chapters 68; 515; Laws 1921, chapter 118; Laws 2.57 1923, chapter 54; Laws 1925, chapter 197; Laws 1931, 2.58 chapter 48; Laws 1933, chapter 122; Laws 1935, 2.59 chapters 92; 192; 208; 259; Laws 1937, chapters 132; 2.60 197; 253; Laws 1939, chapters 124; 304; Laws 1941, 2.61 chapters 74; 182; 196; Laws 1943, chapters 170; 267; 2.62 397; 413; 432; Laws 1945, chapters 74; 182; 277; 300; 2.63 Laws 1947, chapters 40; 43; 101; 274; 329; Laws 1949, 2.64 chapters 87; 144; 153; 154; 164; 191; 235; 281; 378; 2.65 Laws 1951, chapters 43; 45; 48; 144; 233; 243; 420; 2.66 435; 499; Laws 1953, chapters 37; 44; 91; 235; 253; 2.67 348; 391; 401; 406; Laws 1955, chapters 42; 49; 75; 2.68 151; 187; 188; 293; 294; 348; 375; 827; Laws 1957, 2.69 chapters 10; 16; 36; 127; 144; 164; 256; 257; 455; 2.70 630; 793; Laws 1959, chapters 108; 131; 191; 207; 208; 2.71 211; 437; Laws 1961, chapters 186; 290; 295; 300; 343; 3.1 376; 399; 434; 435, section 2; 443; 620; 631; 747; 3.2 Extra Session Laws 1961, chapters 28; 80; Laws 1963, 3.3 chapters 36; 208; 221; 271; 443; 453; 454; 464; 619; 3.4 636; 643; 670; 715; Laws 1965, chapters 174; 179; 190; 3.5 418; 457; 458; 465; 498; 536; 540; 594; 604; 605; 636; 3.6 790; Laws 1967, chapters 644; 678; 702; 708; 730; 732; 3.7 736; 751; 775; 783; 798; 807; 816; 848; Laws 1969, 3.8 chapters 138; 442; 443; 552; 576; 594; 614; 641; 668; 3.9 669; 670; 671; 672; 686; 694; 716; 849; 1087; Laws 3.10 1971, chapters 51; 178; 407; 549; 614; 807; 809; 810; 3.11 Extra Session Laws 1971, chapter 41; Laws 1973, 3.12 chapters 286; 287; 346; 359; 432; 433; 587; Laws 1974, 3.13 chapters 251; 382; Laws 1975, chapters 120; 121; 127; 3.14 254, sections 1, 2, 3, 4, 5, 6; 368, section 54; 389; 3.15 408; 423; 424; 425; Laws 1976, chapters 36; 78; 85; 3.16 99; 247; Laws 1977, chapters 83; 164, sections 1, 3; 3.17 169; 270; 275; 374, sections 1, 2, 3, 4, 5, 6, 7, 8, 3.18 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 3.19 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 3.20 36, 37, 38, 39, 40, 41, 42, 43, 44, 45, 46, 47, 48, 3.21 49, 50, 51, 52, 53, 54, 55, 56, 57, 58, 59, 60; 429, 3.22 section 62; Laws 1978, chapters 563, sections 12, 13, 3.23 14, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 3.24 28, 29, 30; 579; 648; 690, sections 9, 10; 793, 3.25 section 96; Laws 1979, chapters 131, section 3; 216, 3.26 sections 27, 28, 29, 30, 31, 34, 35, 36, 37, 38, 39, 3.27 40, 41, 42, 43, 44; Laws 1980, chapters 341, sections 3.28 2, 3, 4, 5, 6, 9, 10; 600, sections 11, 12, 13, 14, 3.29 15, 16, 17, 18, 22; 607, article XV, section 23; Laws 3.30 1981, chapters 68, sections 31, 32, 33, 34, 35, 36, 3.31 37, 41, 42, 43; 224, sections 236, 237, 239, 240, 243, 3.32 244, 247, 248, 252, 253, 258, 259, 260, 261, 263, 264, 3.33 265, 266, 267, 268, 270, 272, 273; 297, sections 1, 2; 3.34 Laws 1982, chapters 402; 443; 574, sections 3, 4, 5, 3.35 6, 8; 578, articles II, section 1, subdivision 8; III, 3.36 section 18; 610, sections 8, 9, 10, 11, 12, 13, 14, 3.37 15, 16, 17, 18, 19, 20; Laws 1983, chapters 47; 74; 3.38 84, section 1; 291, sections 8, 9, 10, 11, 12, 13, 14, 3.39 15, 16, 17; Laws 1984, chapter 574, sections 18, 19, 3.40 20, 22, 23, 24, 25, 26, 33; Laws 1985, chapters 259, 3.41 sections 5, 6; 261, sections 14, 15, 16, 18, 20, 32, 3.42 33, 34, 35, 36; Laws 1985, First Special Session 3.43 chapter 16, article 2, section 6; Laws 1986, chapters 3.44 359, sections 22, 23, 24, 25; 458, sections 23, 34; 3.45 Laws 1987, chapter 372, article 2, sections 7, 8, 9, 3.46 10, 12; Laws 1988, chapter 709, articles 8, section 5; 3.47 9, section 5; Laws 1989, chapter 319, article 11, 3.48 sections 2, 3, 4, 12; Laws 1990, chapter 589, article 3.49 1, section 7; Laws 1991, chapters 96; 269, article 2, 3.50 sections 12, 13; Laws 1992, chapters 392, section 1; 3.51 393, section 1; 422; 431, section 1; 448; 455; 563, 3.52 sections 3, 4, 5; 586, section 1; Laws 1993, chapters 3.53 72; 110; 112, section 2; 126; 202, article 1; Laws 3.54 1994, chapters 409; 410; 474; 490; 541, section 3; 3.55 Laws 1995, chapter 262, article 10, section 4; Laws 3.56 1996, chapter 448, article 2, section 1; Laws 1997, 3.57 chapters 233, article 1, section 58, 241, article 2, 3.58 sections 2, 3, 4, 5, 6, 9, 10, 11, 13, 14, 15, 20; 3.59 Laws 1999, chapter 222, article 3, section 6; Laws 3.60 2000, chapter 461, article 10, section 2. 3.61 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 3.62 ARTICLE 1 3.63 LOCAL POLICE AND PAID 3.64 FIRE RELIEF ASSOCIATION 3.65 GOVERNING LAW CLARIFICATION 4.1 Section 1. Minnesota Statutes 2000, section 69.77, is 4.2 amended to read: 4.3 69.77 [POLICE AND FIREFIGHTERS' RELIEF ASSOCIATION 4.4 GUIDELINES ACT.] 4.5 Subdivision 1. [AUTHORIZEDCONDITIONED EMPLOYER SUPPORT 4.6 FOR A RELIEF ASSOCIATION.] (a) Notwithstanding any law to the 4.7 contrary, only if the municipality and the relief association 4.8 comply with the provisions of this section, a municipality may 4.9 contribute public funds, including any applicable police or fire 4.10 state aid, or levy property taxes for the support of a police or 4.11 firefighters' relief association, enumerated in subdivision 1a, 4.12 however organized, which provides retirement coverage or pays a 4.13 service pension to a retired police officer or firefighter or a 4.14 retirement benefit to a surviving dependent of either an active 4.15 or retired police officer or firefighter, for the operation and 4.16 maintenance of the relief associationonly if the municipality4.17and the relief association comply with the provisions of this4.18section. 4.19 (b) The commissioner shall not include in the apportionment 4.20 of police or fire state aid to the county auditorpursuant to4.21 under section 69.021, subdivision 6, any municipality in which 4.22 there exists a local police or salaried firefighters' relief 4.23 association as enumerated in subdivision 1a which does not 4.24 comply with the provisions of this section or the provisions of 4.25 any applicable special law relating to the funding or financing 4.26 of the association and that municipalityshallmay not qualify 4.27 initially to receive, or be entitled subsequently to retain, 4.28 state aidpursuant tounder sections 69.011 to 69.051 until the 4.29 reason for the disqualification is remedied, whereupon the 4.30 municipality, if otherwise qualified,shall beis entitled to 4.31 again receive state aid for the year occurring immediately 4.32 subsequent to the year in which the disqualification is remedied. 4.33 (c) The state auditor and the commissioner shall determine 4.34 if a municipality with a local police or salaried firefighters' 4.35 relief association fails to comply with the provisions of this 4.36 section or the funding or financing provisions of any applicable 5.1 special law. 5.2 Subd. 1a. [COVERED RETIREMENT PLANS.] The provisions of 5.3 this sectionshallapply to the following local retirementfunds5.4 plans: 5.5 (1)any police pension fund or relief association which is5.6established pursuant to chapter 423the Bloomington firefighters 5.7 relief association; 5.8 (2)any salaried firefighters' pension fund or relief5.9association which is established pursuant to chapter 424the 5.10 Fairmont police relief association; 5.11 (3)any pension fund or relief association which is5.12established pursuant to this chapter which has five or more5.13members who receive compensation for services rendered in the5.14employment covered by the pension fund or relief association and5.15which provides for retirement coverage or a service pension5.16based on the compensation paid to members for that servicethe 5.17 Minneapolis firefighters relief association; 5.18 (4)any pension fund or relief association which is5.19established and operates in whole or in part pursuant to special5.20legislation and which provides for retirement coverage or a5.21service pension based on the compensation paid to members for5.22service as police officers or firefighters or which provides for5.23retirement coverage or a service pension to volunteer5.24firefighters based on the compensation paid to or the service5.25pension provided by a pension fund or relief association located5.26in the same municipality for police officers employed by the5.27municipality but not covered by clause (1), (2) or (3)the 5.28 Minneapolis police relief association; and 5.29 (5)any governmental subdivision retirement fund5.30established pursuant to any law providing for retirement5.31coverage to police officers or salaried firefighters or a5.32retirement benefit to their dependents and not otherwise5.33described in this subdivisionthe Virginia fire department 5.34 relief association. 5.35 Subd. 2. [INAPPLICABLE PENALTY.] The penalty provided for 5.36 in subdivision 1shalldoes not apply to a relief association 6.1 enumerated in subdivision 1a if the requirements of subdivisions 6.22a3 to2h10 are met. 6.3 Subd.2a3. [MINIMUM MEMBER CONTRIBUTION.] Each active 6.4 member of the relief associationshallmust pay into the special 6.5 fund of the association during a year of covered service, a 6.6 contribution for retirement coverage, including survivorship 6.7 benefits, of not less than eight percent of the maximum rate of 6.8 salary upon which retirement coverage is credited and service 6.9 pension and retirement benefit amounts are determined. The 6.10 member contributionsshallmust be made by payroll deduction 6.11 from the salary of the member by the municipality, and 6.12shallmust be transmitted by the municipality to the relief 6.13 association as soon as practical. The relief association shall 6.14 deposit the member contribution to the credit of the special 6.15 fund of the relief association. The member contribution 6.16 requirement specified in this subdivisionshalldoes not apply 6.17 to any members who are volunteer firefighters. 6.18 Subd.2b4. [RELIEF ASSOCIATION FINANCIAL REQUIREMENTS; 6.19 MINIMUM MUNICIPAL OBLIGATION.] (a) The officers of the relief 6.20 association shall determine the financial requirements of the 6.21 relief association and minimum obligation of the municipality 6.22 for the following calendar year in accordance with the 6.23 requirements of this subdivision. The financial requirements of 6.24 the relief association and the minimum obligation of the 6.25 municipalityshallmust be determined on or before the 6.26 submission date established by the municipalitypursuant to6.27 under subdivision2c5. 6.28 (b) The financial requirements of the relief association 6.29 for the following calendar yearshallmust be based on the most 6.30 recent actuarial valuation or survey of the special fund of the 6.31 association if more than one fund is maintained by the 6.32 association, or of the association, if only one fund is 6.33 maintained, prepared in accordance with sections 356.215, 6.34 subdivisions 4 to 4k and 356.216, as requiredpursuant tounder 6.35 subdivision2h10. If an actuarial estimate is prepared by the 6.36 actuary of the relief association as part of obtaining a 7.1 modification of the benefit plan of the relief association and 7.2 the modification is implemented, the actuarial estimateshall7.3 must be used in calculating the subsequent financial 7.4 requirements of the relief association. 7.5 (c) If the relief association has an unfunded actuarial 7.6 accrued liability as reported in the most recent actuarial 7.7 valuation or survey, the total of the amounts 7.8 calculatedpursuant tounder clauses(a), (b), and (c)7.9shall(1), (2), and (3) constitute the financial requirements of 7.10 the relief association for the following year. If the relief 7.11 association does not have an unfunded actuarial accrued 7.12 liability as reported in the most recent actuarial valuation or 7.13 survey, the amount calculatedpursuant tounder clauses(a) and7.14(b) shall(1) and (2) constitute the financial requirements of 7.15 the relief association for the following year. The financial 7.16 requirement elements are: 7.17(a)(1) The normal level cost requirement for the following 7.18 year, expressed as a dollar amount, whichshallmust be 7.19 determined by applying the normal level cost of the relief 7.20 association as reported in the actuarial valuation or survey and 7.21 expressed as a percentage of covered payroll to the estimated 7.22 covered payroll of the active membership of the relief 7.23 association, including any projectedincreasechange in the 7.24 active membership, for the following year.; 7.25(b)(2) For the Bloomington fire department relief 7.26 association, the Fairmont police relief association, and the 7.27 Virginia fire department relief association, to the dollar 7.28 amount of normal costthusdeterminedshallunder clause (1) 7.29 must be added an amount equal to the dollar amount of the 7.30 administrative expenses of the special fund of the association 7.31 if more than one fund is maintained by the association, or of 7.32 the association if only one fund is maintained, for the most 7.33 recent year, multiplied by the factor of 1.035.For a relief7.34association in a municipality,The administrative expenses are 7.35 those authorized under section 69.80. No amount of 7.36 administrative expenses under this clauseshallare to be 8.1 included in the financial requirements ofathe Minneapolis 8.2 firefighters relief associationin a city of the first class8.3with a population of more than 300,000.or the Minneapolis 8.4 police relief association; and 8.5(c)(3) To the dollar amount of normal cost and expenses 8.6 determined under clauses(a) and (b) shall(1) and (2) must be 8.7 added an amount equal to the level annual dollar amount which is 8.8 sufficient to amortize the unfunded actuarial accrued liability 8.9 by December 31, 2010, as determined from the actuarial valuation 8.10 or survey of the fund, using an interest assumption set at the 8.11 applicable rate specified in section 356.215, subdivision 4d. 8.12 The amortization date specified in this clauseshall apply8.13 applies to all local police or salaried firefighters' relief 8.14 associations andshall supersedethat date supersedes any 8.15 amortization date specified in any applicable special law. 8.16 (d) The minimum obligation of the municipalityshall beis 8.17 an amount equal to the financial requirements of the relief 8.18 association reduced by the estimated amount of member 8.19 contributions from covered salary anticipated for the following 8.20 calendar year and the estimated amounts anticipated for the 8.21 following calendar year from the applicable state aid program 8.22 establishedpursuant tounder sections 69.011 to 69.051 8.23 receivable by the relief association after any allocation 8.24 madepursuant tounder section 69.031, subdivision 5, clause 8.25 (2), subclause (c), or 423A.01, subdivision 2, clause (6), from 8.26 the local police and salaried firefighters' relief association 8.27 amortization aid program establishedpursuant tounder section 8.28 423A.02and, subdivision 1, from the supplementary amortization 8.29 state-aid program established underLaws 1984, chapter 564,8.30section 48, and Laws 1985, chapter 261, section 17section 8.31 423A.02, subdivision 1a, and from the additional amortization 8.32 state aid under section 423A.02, subdivision 1b. 8.33 Subd.2c5. [DETERMINATION SUBMISSION.] The officers of 8.34 the relief association shall submit the determination of the 8.35 financial requirements of the relief association and of the 8.36 minimum obligation of the municipality to the governing body on 9.1 or before the date established by the municipality, whichshall9.2 may not be earlier than August 1 andshallmay not be later than 9.3 September 1 of each year. The governing body of the 9.4 municipalityshallmust ascertain whether or not the 9.5 determinations were prepared in accordance with law. 9.6 Subd.2d6. [MUNICIPAL PAYMENT.] (a) The municipality 9.7 shall provide for and shall pay, each year, at least the amount 9.8 of the minimum obligation of the municipality to the relief 9.9 association. 9.10 (b) If there is any deficiency in the municipal payment to 9.11 meet the minimum obligation of the municipality as of the end of 9.12 any calendar year, the amount of the deficiencyshallmust be 9.13 added to the minimum obligation of the municipality for the 9.14 following year calculatedpursuant tounder subdivision2b4 and 9.15shallmust include interest at the compound rate of six percent 9.16 per annumcompoundedfrom the date that the municipality was 9.17 required to make paymentpursuant tounder this subdivision 9.18 until the date that the municipality actually makes the required 9.19 payment. 9.20 Subd.2e7. [BUDGET INCLUSION.] (a) The municipality shall 9.21 provide in the annual municipal budget for at least the minimum 9.22 obligation of the municipality calculatedpursuant tounder 9.23 subdivision2b4. 9.24 (b) The municipality may levy taxes for the payment of the 9.25 minimum obligation of the municipality without any limitation as 9.26 to rate or amount and irrespective of limitations imposed by 9.27 other provisions of law upon the rate or amount of taxation when 9.28 the balance of the special fund or any fund of the relief 9.29 association has attained a specified minimum asset level. In 9.30 addition, any taxes leviedpursuant tounder this sectionshall9.31 may not cause the amount or rate of other taxes levied in that 9.32 year or to be levied in a subsequent year by the municipality 9.33 which are subject to a limitation as to rate or amount to be 9.34 reduced. 9.35 (c) If the municipality does not include the full amount of 9.36 the minimum obligation of the municipality in the levy that the 10.1 municipality certified to the county auditor in any year, the 10.2 officers of the relief association shall certify the amount of 10.3 any deficiency to the county auditor. Upon verifying the 10.4 existence of any deficiency in the levy certified by the 10.5 municipality, the county auditor shall spread a levy over the 10.6 taxable property of the municipality in the amount of the 10.7 deficiency certified to by the officers of the relief 10.8 association. 10.9 Subd.2f8. [ACCELERATED AMORTIZATION.] Any sums of money 10.10 paid by the municipality to the relief association in excess of 10.11 the minimum obligation of the municipality in any yearshall10.12 must be used to amortize any unfunded actuarial accrued 10.13 liabilities of the relief association. 10.14 Subd.2g9. [LOCAL POLICE AND PAID FIRE RELIEF ASSOCIATION 10.15 INVESTMENT AUTHORITY.] (a) The funds of the association must be 10.16 invested in securities that are authorized investments under 10.17 section 356A.06, subdivision 6 or 7.Notwithstanding the10.18foregoing,Up to 75 percent of the market value of the assets of 10.19 the fund may be invested in open-end investment companies 10.20 registered under the federal Investment Company Act of 1940, if 10.21 the portfolio investments of the investment companies comply 10.22 with the type of securities authorized for investment under 10.23 section 356A.06, subdivision 7. Securities held by the 10.24 association before June 2, 1989, that do not meet the 10.25 requirements of this subdivision may be retained after that date 10.26 if they were proper investments for the association on that date. 10.27 (b) The governing board of the association may select and 10.28 appoint investment agencies to act for and in its behalf or may 10.29 certify special fund assets for investment by the state board of 10.30 investment under section 11A.17. The governing board of the 10.31 association may certify general fund assets of the relief 10.32 association for investment by the state board of investment in 10.33 fixed income pools or in a separately managed account at the 10.34 discretion of the state board of investment as provided in 10.35 section 11A.14. The governing board of the association may 10.36 select and appoint a qualified private firm to measure 11.1 management performance and return on investment, and the firm 11.2 shall use the formula or formulas developed by the state board 11.3 under section 11A.04, clause (11). 11.4 Subd.2h10. [ACTUARIAL VALUATION REQUIRED.] The 11.5 association shall obtain an actuarial valuation showing the 11.6 condition of the special fund of the relief associationpursuant11.7tounder sections 356.215 and 356.216 and any applicable 11.8 standards for actuarial work established by the legislative 11.9 commission on pensions and retirement as of December 31 of every 11.10 year. A copy of the actuarial valuationshallmust be filed 11.11 with the director of the legislative reference library, the 11.12 governing body of the municipality in which the association is 11.13 organized, the executive director of the legislative commission 11.14 on pensions and retirement, and the state auditor, not later 11.15 than July 1 of the following year. 11.16 Subd.2i11. [MUNICIPAL APPROVAL OF BENEFIT CHANGES 11.17 REQUIRED.] Any amendment to the bylaws or articles of 11.18 incorporation of a relief association which increases or 11.19 otherwise affects the retirement coverage provided by or the 11.20 service pensions or retirement benefits payable from any police 11.21 or firefighters' relief association enumerated in subdivision 1a 11.22shallis notbeeffective until it is ratified by the 11.23 municipality in which the relief association is located. The 11.24 officers of the relief association shall not seek municipal 11.25 ratificationprior tobefore obtaining either an updated 11.26 actuarial valuation including the proposed amendment or an 11.27 estimate of the expected actuarial impact of the proposed 11.28 amendment prepared by the actuary of the relief association and 11.29 submitting that actuarial valuation or estimate to the clerk of 11.30 the municipality. 11.31 Subd. 12. [APPLICATION OF OTHER LAWS TO CONTRIBUTION 11.32 RATE.] In the absence of any specific provision to the contrary, 11.33 no general or special law previously enacted may be construed as 11.34 reducing the amount or rate of contribution to a police or 11.35 firefighters relief association to which subdivision 1a applies, 11.36 by a municipality or member of the association, which is 12.1 required as a condition for the use of public funds or the levy 12.2 of taxes for the support of the association. Each association, 12.3 the municipality in which it is organized, and the officers of 12.4 each, are authorized to do all things required by this section 12.5 as a condition for the use of public funds or the levy of taxes 12.6 for the support of the association. 12.7 Subd.313. [CITATION.] This section may be cited as the 12.8 "Police and Firefighters' Relief Associations Guidelines Act of 12.9 1969." 12.10 Sec. 2. Minnesota Statutes 2000, section 69.80, is amended 12.11 to read: 12.12 69.80 [AUTHORIZED ADMINISTRATIVE EXPENSES.] 12.13 (a) Notwithstanding any provision of law to the contrary, 12.14 the payment of the following necessary, reasonable and direct 12.15 expenses of maintaining, protecting and administering the 12.16 special fund, when provided for in the bylaws of the association 12.17 and approved by the board of trustees,shallconstitute 12.18 authorized administrative expenses of a police, salaried 12.19 firefighters', or volunteer firefighters' relief association 12.20 organized under any law of this state: 12.21(a)(1) office expense, including, but not limited to, 12.22 rent, utilities, equipment, supplies, postage, periodical 12.23 subscriptions, furniture, fixtures, and salaries of 12.24 administrative personnel; 12.25(b)(2) salaries of the president, secretary, and treasurer 12.26 of the association, or their designees, and any other official 12.27 of the relief association to whom a salary is payable under 12.28 bylaws or articles of incorporation in effect on January 1, 12.29 1986, and their itemized expenses incurred as a result of 12.30 fulfilling their responsibilities as administrators of the 12.31 special fund; 12.32(c)(3) tuition, registration fees, organizational dues, 12.33 and other authorized expenses of the officers or members of the 12.34 board of trustees incurred in attending educational conferences, 12.35 seminars, or classes relating to the administration of the 12.36 relief association; 13.1(d)(4) audit, actuarial, medical, legal, and investment 13.2 and performance evaluation expenses; 13.3(e)(5) reimbursement to the officers and members of the 13.4 board of trustees, or their designees, for reasonable and 13.5 necessary expenses actually paid and incurred in the performance 13.6 of their duties as officers or members of the board; and 13.7(f)(6) premiums on fiduciary liability insurance and 13.8 official bonds for the officers, members of the board of 13.9 trustees, and employees of the relief association. 13.10 (b) Any other expenses of the relief associationshallmust 13.11 be paid from the general fund of the association, if one 13.12 exists. If a relief association has only one fund, that 13.13 fundshall be deemed to beis the special fund for purposes of 13.14 this section. If a relief association has a special fund and a 13.15 general fund, and any expense of the relief association that is 13.16 directly related to the purposes for which both funds were 13.17 established, the payment of that expenseshallmust be 13.18 apportioned between the two funds on the basis of the benefits 13.19 derived by each fund. 13.20 Sec. 3. Minnesota Statutes 2000, section 353A.08, 13.21 subdivision 6a, is amended to read: 13.22 Subd. 6a. [MILITARY SERVICE CONTRIBUTION AND REFUND.] A 13.23 person who was an active member of a local police or 13.24 firefighters relief association upon its consolidation with the 13.25 public employees retirement association, and who was otherwise 13.26 eligible for automatic service credit for military service under 13.27sectionsMinnesota Statutes 2000, section 423.57and 424.23, and 13.28 who has not elected the type of benefit coverage provided by the 13.29 public employees police and fire fund at the time of 13.30 consolidation, must make employee contributions under section 13.31 353.01, subdivision 16, paragraph (h), to receive allowable 13.32 service credit from the association for a military service leave 13.33 after the effective date of the consolidation. A person who 13.34 later elects, under subdivision 3, to retain benefit coverage 13.35 under the bylaws of the local relief association is eligible for 13.36 a refund from the association at the time of retirement. The 14.1 association shall refund the employee contributions plus 14.2 interest at the rate of six percent, compounded quarterly, from 14.3 the date on which contributions were made until the first day of 14.4 the month in which the refund is paid. The employer shall 14.5 receive a refund of the employer contributions. The association 14.6 shall not pay a refund to a person who later elects, under 14.7 subdivision 3, the type of benefit coverage provided by the 14.8 public employees police and fire fund or to the person's 14.9 employer. 14.10 Sec. 4. Minnesota Statutes 2000, section 423A.17, is 14.11 amended to read: 14.12 423A.17 [CONTINUATION OF SURVIVING SPOUSE BENEFITS UPON 14.13 REMARRIAGE.] 14.14 (a) Notwithstanding a provision ofsection 69.48; 423.387,14.15subdivision 1; 423.58, subdivision 1; 423.810, subdivision 1; or14.16424.24, subdivision 1, or otherlaw, article of incorporation, 14.17 or bylaw governing a local police or salaried firefighters 14.18 relief association to the contrary, the governing body of a 14.19 municipality may mandate the applicable local police or salaried 14.20 firefighters relief association to provide that a surviving 14.21 spouse benefit is payable for the life of the surviving spouse 14.22 and remains payable even in the event of the remarriage of the 14.23 surviving spouse. 14.24 (b) If the surviving spouse benefit change described in 14.25 paragraph (a) is made, the change applies to a surviving spouse 14.26 benefit payable on the effective date of the change and to the 14.27 potential surviving spouses of all active, deferred, or retired 14.28 members of the relief association who have that status on the 14.29 effective date of the change. 14.30 (c) In addition, if the surviving spouse benefit change 14.31 described in paragraph (a) is made a person who formerly was 14.32 receiving surviving spouse benefits from the relief association 14.33 and who had those benefits discontinued by virtue of the 14.34 remarriage is entitled, upon application, to a resumption of the 14.35 surviving spouse benefit, beginning with the last day of the 14.36 month following receipt of the application by the secretary of 15.1 the relief association. Nothing in this section authorizes the 15.2 payment of a benefit amount to an estate. 15.3 (d) The change must be made by a municipal resolution 15.4 adopted by a majority vote of the municipality. The resolution 15.5 must be filed by the secretary of the relief association with 15.6 the executive director of the legislative commission on pensions 15.7 and retirement, the state auditor, and the secretary of state. 15.8 Sec. 5. Minnesota Statutes 2000, section 423A.171, is 15.9 amended to read: 15.10 423A.171 [BYLAW AMENDMENTS.] 15.11 (a) Notwithstanding a provision ofsection 69.48; 423.387,15.12subdivision 1; 423.58, subdivision 1; 423.810, subdivision 1;15.13423B.10; or 424.24, subdivision 1, or otherlaw governing a 15.14 local police or salaried firefighters' relief association to the 15.15 contrary, the board of trustees of a local relief association 15.16 governed by section 69.77 or its successor board under chapter 15.17 353A or 353B, with municipal approval as provided in section 15.18 69.77, subdivision2i11, may amend the bylaws of the relief 15.19 association to provide that a surviving spouse benefit is 15.20 payable to a surviving spouse who married a deferred or retired 15.21 member after the member's retirement, provided the marriage 15.22 occurred at least five years before the death of the member. 15.23 (b) If the surviving spouse benefit change described in 15.24 paragraph (a) is made, the change applies to a surviving spouse 15.25 benefit payable on the effective date of the change and to the 15.26 potential surviving spouses of all deferred or retired members 15.27 of the relief association who have that status on the effective 15.28 date of the change. 15.29 (c) The bylaw amendment is not effective until a certified 15.30 copy of the amendment and the municipal approval has been filed 15.31 by the municipal clerk with the executive director of the 15.32 legislative commission on pensions and retirement, the state 15.33 auditor, and the secretary of state. 15.34 (d) Notwithstanding the provisions of section 353B.11, a 15.35 surviving spouse benefit change made under this section for a 15.36 relief association that has consolidated with the public 16.1 employees retirement association is effective upon approval by 16.2 the public employees retirement association and the municipality 16.3pursuant tounder paragraph (c). 16.4 Sec. 6. Minnesota Statutes 2000, section 424A.09, is 16.5 amended to read: 16.6 424A.09 [APPLICATION TO CERTAIN RELIEF ASSOCIATIONS.] 16.7 This chaptershall supersedesupersedes any special law 16.8 applicable to any municipal volunteer firefighters' relief 16.9 association or independent nonprofit firefighting corporation 16.10 specifically authorizing the relief association or nonprofit 16.11 firefighting corporation to exceed the service pension 16.12 limitations contained in Minnesota Statutes 1978, sections 69.06 16.13 and 69.691. Any relief association which amended its bylaws to 16.14 provide for a full pro rata service pension amount at the 16.15 specified retirement age with 15 years service credit or 75 16.16 percent of the pro rata service pension amount at the specified 16.17 retirement age with ten years of servicepursuant tounder 16.18 Minnesota Statutes 1978, section 69.06, may continue to provide 16.19 the specified service pension amounts at the applicable years of 16.20 credited service to any member who has credit for at least ten 16.21 or 15 years, whichever is the applicable minimum service period 16.22 specified in the bylaws governing the relief association, on or 16.23 before December 31, 1979notwithstanding section 424A.02. 16.24 Sec. 7. [APPLICATION; BLOOMINGTON FIREFIGHTERS RELIEF 16.25 ASSOCIATION.] 16.26 To the extent that Minnesota Statutes 2000, chapter 424, 16.27 applied to the Bloomington firefighters relief association on 16.28 the day before the effective date of section 5, Minnesota 16.29 Statutes 2000, chapter 424, continues to apply to the 16.30 Bloomington firefighters relief association after that date. 16.31 Sec. 8. [REVISOR INSTRUCTIONS.] 16.32 (a) In the next and subsequent editions of Minnesota 16.33 Statutes, the revisor of statutes shall not print Minnesota 16.34 Statutes, sections 423.41 to 423.62, but shall denote those 16.35 sections as "[LOCAL, CITY OF FAIRMONT, POLICE PENSIONS.]." 16.36 (b) In the next and subsequent editions of Minnesota 17.1 Statutes, the revisor of statutes shall, in each section 17.2 indicated in column A, replace the cross-reference specified in 17.3 column B with the cross-reference set forth in column C: 17.4 Column A Column B Column C 17.5 69.021, subd. 10 69.77, subd. 2a 69.77, subd. 3 17.6 69.021, subd. 10 69.77, subd. 2b 69.77, subd. 4 17.7 69.021, subd. 10 69.77, subd. 2c 69.77, subd. 5 17.8 299A.465, subd. 5 424.03 Minnesota Statutes, 17.9 2000, 424.03 17.10 353A.07, subd. 6 69.77, subd. 2a 69.77, subd. 3 17.11 353A.09, subd. 4 69.77, subd. 2a 69.77, subd. 3 17.12 356.216 69.77, subd. 2b 69.77, subd. 4 17.13 356.219, subd. 2 69.77, subd. 2g 69.77, subd. 9 17.14 423.01, subd. 2 69.77, subd. 2b 69.77, subd. 4 17.15 423A.18 69.77, subd. 2i 69.77, subd. 11 17.16 423A.19, subd. 4 69.77, subd. 2i 69.77, subd. 11 17.17 423B.06, subd. 1 69.77, subd. 2a 69.77, subd. 3 17.18 423B.06, subd. 1 69.77, subd. 2b 69.77, subd. 4 17.19 423B.06, subd. 1 69.77, subd. 2c 69.77, subd. 5 17.20 423B.06, subd. 1 69.77, subd. 2d 69.77, subd. 6 17.21 423B.06, subd. 1 69.77, subd. 2e 69.77, subd. 7 17.22 423B.06, subd. 1 69.77, subd. 2f 69.77, subd. 8 17.23 423B.21, subd. 1 69.77, subd. 2b 69.77, subd. 4 17.24 Sec. 9. [REPEALER; OBSOLETE POLICE AND FIRE PENSION LAWS.] 17.25 Subdivision 1. [FIRST CLASS CITY FIRE; 17.26 REPEALER.] Minnesota Statutes 2000, sections 69.25; 69.26; 17.27 69.27; 69.28; 69.29; 69.30; 69.32; 69.361; 69.37; 69.38; 69.39; 17.28 69.40; 69.41; 69.42; 69.43; 69.44; 69.45; 69.46; 69.47; 69.48; 17.29 69.49; 69.50; 69.51; 69.52; 69.53; and 69.62, are repealed. 17.30 Subd. 2. [THIRD CLASS CITY POLICE; REPEALER.] Minnesota 17.31 Statutes 2000, sections 423.37; 423.371; 423.372; 423.373; 17.32 423.374; 423.375; 423.377; 423.378; 423.379; 423.38; 423.381; 17.33 423.382; 423.383; 423.384; 423.385; 423.386; 423.387; 423.388; 17.34 423.389; 423.39; 423.391; and 423.392, are repealed. 17.35 Subd. 3. [SECOND CLASS CITY POLICE; REPEALER.] Minnesota 17.36 Statutes 2000, sections 423.801; 423.802; 423.803; 423.804; 18.1 423.805; 423.806; 423.808; 423.809; 423.810; 423.812; 423.813; 18.2 423.814; and 423.90, are repealed. 18.3 Subd. 4. [SECOND CLASS CITY FIRE; REPEALER.] Minnesota 18.4 Statutes 2000, sections 424.01; 424.02; 424.03; 424.04; 424.05; 18.5 424.06; 424.08; 424.14; 424.15; 424.16; 424.165; 424.17; 424.18; 18.6 424.19; 424.20; 424.21; 424.22; 424.23; 424.24; 424.25; 424.27; 18.7 424.28; and 424.29, are repealed. 18.8 Subd. 5. [ALBERT LEA FIRE; REPEALER.] Laws 1943, chapters 18.9 170 and 397; Laws 1947, chapter 274; Laws 1949, chapters 87 and 18.10 281; Laws 1951, chapters 233, 420, and 435; Laws 1953, chapters 18.11 44 and 406; Laws 1957, chapter 127; Laws 1959, chapter 207; Laws 18.12 1963, chapter 643; Laws 1984, chapter 574, section 23; Laws 18.13 1985, chapter 261, section 36; and Laws 1993, chapter 72, are 18.14 repealed. 18.15 Subd. 6. [ALBERT LEA POLICE; REPEALER.] Laws 1965, chapter 18.16 174; Laws 1976, chapter 247; and Laws 1985, chapter 261, section 18.17 36, are repealed. 18.18 Subd. 7. [ANOKA POLICE; REPEALER.] Laws 1965, chapter 174; 18.19 Laws 1973, chapter 587; Laws 1978, chapter 563, section 28; and 18.20 Laws 1981, chapter 224, sections 263 and 264, are repealed. 18.21 Subd. 8. [AUSTIN FIRE; REPEALER.] Laws 1943, chapter 170; 18.22 Laws 1949, chapter 87; Laws 1951, chapters 45 and 435; Laws 18.23 1957, chapter 164; Laws 1963, chapter 36; Laws 1965, chapter 18.24 418; Laws 1976, chapter 36; Laws 1978, chapter 579; Laws 1980, 18.25 chapter 341, sections 9 and 10; Laws 1981, chapter 224, sections 18.26 268 and 270; Laws 1992, chapter 455; and Laws 1994, chapter 490, 18.27 are repealed. 18.28 Subd. 9. [AUSTIN POLICE; REPEALER.] Laws 1943, chapter 18.29 432; Laws 1976, chapter 36; Laws 1980, chapter 341, sections 9 18.30 and 10; and Laws 1981, chapter 224, sections 268 and 270, are 18.31 repealed. 18.32 Subd. 10. [BLOOMINGTON POLICE; REPEALER.] Laws 1965, 18.33 chapter 498; Laws 1975, chapter 121; Laws 1978, chapter 563, 18.34 section 17; Laws 1980, chapter 341, section 6; Laws 1981, 18.35 chapter 224, section 240; and Laws 1993, chapter 202, article 1, 18.36 are repealed. 19.1 Subd. 11. [BRAINERD POLICE; REPEALER.] Laws 1959, chapter 19.2 437, is repealed. 19.3 Subd. 12. [BROOKLYN CENTER POLICE; REPEALER.] Laws 1967, 19.4 chapter 736; and Laws 1978, chapter 563, section 18, are 19.5 repealed. 19.6 Subd. 13. [BUHL POLICE; REPEALER.] Laws 1957, chapter 630; 19.7 Laws 1975, chapter 425; Laws 1976, chapter 247; Laws 1981, 19.8 chapter 68, section 43; Laws 1982, chapter 578, article II, 19.9 section 1, subdivision 8; Laws 1984, chapter 574, sections 18 19.10 and 20; Laws 1985, chapter 261, section 18; and Laws 1986, 19.11 chapter 458, section 23, are repealed. 19.12 Subd. 14. [CHISHOLM FIRE; REPEALER.] Laws 1935, chapter 19.13 208; Laws 1937, chapters 132 and 253; Laws 1939, chapter 124; 19.14 Laws 1947, chapter 329; Laws 1951, chapter 144; Laws 1953, 19.15 chapter 391; Laws 1955, chapters 293 and 827; Laws 1961, chapter 19.16 631; Laws 1971, chapter 809; Laws 1973, chapter 433; Laws 1976, 19.17 chapter 78; Laws 1978, chapter 648; Laws 1979, chapter 131, 19.18 section 3; Laws 1981, chapter 68, sections 36 and 37; and Laws 19.19 1991, chapter 269, article 2, section 12, are repealed. 19.20 Subd. 15. [CHISHOLM POLICE; REPEALER.] Laws 1945, chapter 19.21 74; Laws 1949, chapter 164; Laws 1953, chapter 235; Laws 1959, 19.22 chapter 211; Laws 1961, chapter 290; Laws 1971, chapter 810; 19.23 Laws 1973, chapter 433; Laws 1976, chapter 78; Laws 1978, 19.24 chapter 563, section 27; and 648; Laws 1979, chapter 131, 19.25 section 3; Laws 1981, chapters 68, sections 31, 32, and 33; and 19.26 224, section 261; and Laws 1991, chapter 269, article 2, section 19.27 12, are repealed. 19.28 Subd. 16. [CLOQUET FIRE; REPEALER.] Laws 1941, chapter 19.29 196; Laws 1953, chapter 253; Laws 1955, chapter 42; Laws 1961, 19.30 chapter 295; Laws 1965, chapter 594; Laws 1967, chapter 783; and 19.31 Laws 1969, chapter 716, are repealed. 19.32 Subd. 17. [COLUMBIA HEIGHTS FIRE; REPEALER.] Laws 1965, 19.33 chapter 605; Laws 1975, chapter 424; Laws 1977, chapter 374, 19.34 sections 38, 39, 40, 41, 42, 43, 44, 45, 46, 47, 48, 49, 50, 51, 19.35 52, 53, 54, 55, 56, 57, 58, 59, and 60; Laws 1978, chapter 563, 19.36 sections 29 and 30; and Laws 1981, chapter 224, section 267, are 20.1 repealed. 20.2 Subd. 18. [COLUMBIA HEIGHTS POLICE; REPEALER.] Laws 1977, 20.3 chapter 374, sections 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 20.4 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 20.5 30, 31, 32, 33, 34, 35, 36, and 37; and Laws 1993, chapter 126, 20.6 are repealed. 20.7 Subd. 19. [CROOKSTON FIRE; REPEALER.] Laws 1949, chapter 20.8 378; Laws 1957, chapter 144; Laws 1963, chapter 636; Laws 1971, 20.9 chapter 51; Laws 1978, chapter 563, sections 24, 25, and 26; 20.10 Laws 1981, chapter 224, sections 252 and 253; and Laws 1983, 20.11 chapter 291, sections 9, 10, 11, 12, 13, 14, 15, 16, and 17, are 20.12 repealed. 20.13 Subd. 20. [CROOKSTON POLICE; REPEALER.] Laws 1976, chapter 20.14 85; Laws 1977, chapter 275; Laws 1983, chapter 84, section 1; 20.15 and Laws 1984, chapter 574, section 26, are repealed. 20.16 Subd. 21. [CRYSTAL POLICE; REPEALERS.] Laws 1963, chapter 20.17 619; Laws 1969, chapter 1087; and Laws 1980, chapter 607, 20.18 article XV, section 23, are repealed. 20.19 Subd. 22. [DULUTH FIRE; REPEALER.] Laws 1917, chapter 196; 20.20 Laws 1919, chapter 515; Laws 1955, chapter 188; Laws 1961, 20.21 chapter 186; Laws 1963, chapter 208; Laws 1965, chapter 179; 20.22 Laws 1967, chapter 732; Laws 1975, chapter 127; Laws 1976, 20.23 chapter 78, section 4; Laws 1977, chapter 164, section 3; Laws 20.24 1992, chapter 448, section 1; and Laws 1994, chapter 474, are 20.25 repealed. 20.26 Subd. 23. [DULUTH POLICE; REPEALER.] Laws 1915, chapter 20.27 68; Laws 1921, chapter 118; Laws 1923, chapter 54; Laws 1925, 20.28 chapter 197; Laws 1943, chapter 267; Laws 1949, chapter 153; 20.29 Laws 1953, chapter 91; Laws 1955, chapter 187; Laws 1959, 20.30 chapter 191; Laws 1975, chapter 408; Laws 1976, chapter 99; Laws 20.31 1980, chapter 600, section 11; and Laws 1992, chapter 448, are 20.32 repealed. 20.33 Subd. 24. [EVELETH FIRE; REPEALER.] Laws 1935, chapter 20.34 208; Laws 1937, chapters 132 and 253; Laws 1939, chapter 124; 20.35 Laws 1941, chapters 74 and 182; Laws 1947, chapter 329; Laws 20.36 1951, chapter 144; Laws 1953, chapter 391; Laws 1955, chapter 21.1 293; Laws 1961, chapter 620; Laws 1963, chapter 670; and Laws 21.2 1969, chapter 552, are repealed. 21.3 Subd. 25. [EVELETH POLICE; REPEALER.] Laws 1965, chapter 21.4 636; and Laws 1969, chapter 670, are repealed. 21.5 Subd. 26. [FARIBAULT FIRE; REPEALER.] Laws 1947, chapter 21.6 43; Laws 1949, chapter 154; Laws 1951, chapter 43; Laws 1957, 21.7 chapter 36; Laws 1961, chapter 443; Laws 1967, chapter 807; Laws 21.8 1969, chapter 614; Laws 1975, chapter 389; Laws 1984, chapter 21.9 574, section 22; Laws 1985, chapter 259, sections 5 and 6; Laws 21.10 1985, First Special Session chapter 16, article 2, section 6; 21.11 and Laws 1993, chapter 112, section 2, are repealed. 21.12 Subd. 27. [FARIBAULT POLICE; REPEALER.] Laws 1985, chapter 21.13 259, sections 5 and 6; Laws 1985, First Special Session chapter 21.14 16, article 2, section 6, are repealed. 21.15 Subd. 28. [FRIDLEY FIRE; REPEALER.] Laws 1969, chapter 21.16 594, is repealed. 21.17 Subd. 29. [FRIDLEY POLICE; REPEALER.] Laws 1977, chapter 21.18 83, is repealed. 21.19 Subd. 30. [HIBBING FIRE; REPEALER.] Laws 1935, chapter 21.20 192; Laws 1943, chapter 413; Laws 1945, chapter 182; Laws 1947, 21.21 chapter 101; Laws 1951, chapter 48; Laws 1955, chapter 294; Laws 21.22 1959, chapter 208; Laws 1967, chapter 816; Laws 1969, chapter 21.23 686; Laws 1971, chapter 614; Laws 1975, chapter 254, sections 5 21.24 and 6; Laws 1977, chapter 169; Laws 1981, chapter 224, section 21.25 260; Laws 1982, chapter 443; Laws 1987, chapter 372, article 2, 21.26 sections 7, 8, and 9; and Laws 1991, chapter 269, article 2, 21.27 sections 12 and 13, are repealed. 21.28 Subd. 31. [HIBBING POLICE; REPEALER.] Laws 1931, chapter 21.29 48; Laws 1933, chapter 122; Laws 1939, chapter 304; Laws 1945, 21.30 chapter 300; Laws 1947, chapter 40; Laws 1949, chapter 191; Laws 21.31 1951, chapter 243; Laws 1953, chapter 401; Laws 1957, chapter 21.32 793; Laws 1965, chapter 536; Laws 1967, chapter 678; Laws 1969, 21.33 chapter 672; Laws 1971, chapter 807; Laws 1983, chapter 74; Laws 21.34 1987, chapter 372, article 2, section 7; and Laws 1991, chapter 21.35 269, article 2, section 12, are repealed. 21.36 Subd. 32. [MANKATO FIRE; REPEALER.] Laws 1949, chapter 22.1 144; Laws 1953, chapter 37; Laws 1957, chapter 16; Laws 1971, 22.2 chapter 407; Extra Session Laws 1971, chapter 41; Laws 1981, 22.3 chapter 224, sections 258 and 259; and Laws 1989, chapter 319, 22.4 article 11, section 3, are repealed. 22.5 Subd. 33. [MANKATO POLICE; REPEALER.] Laws 1971, chapter 22.6 407; Extra Session Laws 1971, chapter 41; Laws 1981, chapter 22.7 224, sections 258 and 259; Laws 1986, chapter 458, section 34; 22.8 and Laws 1987, chapter 372, article 2, section 12, are repealed. 22.9 Subd. 34. [MOORHEAD FIRE; REPEALER.] Laws 1951, chapter 22.10 499; Laws 1955, chapter 75; Laws 1965, chapter 190; Laws 1969, 22.11 chapter 138; Laws 1975, chapter 120; Laws 1978, chapter 563, 22.12 sections 12 and 13; Laws 1979, chapter 216, sections 34, 35, 36, 22.13 37, 38, 39, 40, 41, 42, 43, and 44; Laws 1981, chapter 224, 22.14 section 236; and Laws 1982, chapter 578, article III, section 22.15 18, are repealed. 22.16 Subd. 35. [MOORHEAD POLICE; REPEALER.] Laws 1945, chapter 22.17 277; Laws 1967, chapter 775; Laws 1978, chapter 563, section 19; 22.18 Laws 1979, chapter 216, sections 27, 28, 29, 30, 31, and 44; 22.19 Laws 1980, chapter 600, section 16; Laws 1981, chapter 224, 22.20 section 243; and Laws 1982, chapter 578, article III, section 22.21 18, are repealed. 22.22 Subd. 36. [NEW ULM POLICE; REPEALER.] Laws 1965, chapter 22.23 174; Laws 1974, chapter 251; Laws 1981, chapter 224, sections 22.24 265 and 266; and Laws 1985, chapter 261, section 20, are 22.25 repealed. 22.26 Subd. 37. [RED WING FIRE; REPEALER.] Laws 1953, chapter 22.27 348; Laws 1955, chapter 49; Laws 1957, chapter 10; Laws 1961, 22.28 chapter 300; Laws 1965, chapter 604; Laws 1973, chapter 359; 22.29 Laws 1975, chapter 254, sections 1, 2, 3, and 4; and Laws 1984, 22.30 chapter 574, section 24, are repealed. 22.31 Subd. 38. [RED WING POLICE; REPEALER.] Laws 1965, chapter 22.32 174; Laws 1973, chapter 346; Laws 1983, chapter 291, section 8; 22.33 and Laws 1994, chapter 410, are repealed. 22.34 Subd. 39. [RICHFIELD FIRE; REPEALER.] Laws 1955, chapter 22.35 348; Extra Session Laws 1961, chapter 28; Laws 1963, chapter 22.36 464; Laws 1967, chapter 798; Laws 1978, chapter 563, sections 20 23.1 and 21; Laws 1980, chapter 607, article XV, section 23; Laws 23.2 1981, chapter 224, section 244; and Laws 1997, chapter 241, 23.3 article 2, sections 2, 3, 4, 5, 6, 9, 10, 13, 14, and 20, are 23.4 repealed. 23.5 Subd. 40. [RICHFIELD POLICE; REPEALER.] Laws 1957, chapter 23.6 455; Laws 1965, chapter 458; Laws 1978, chapter 563, section 16; 23.7 Laws 1980, chapter 607, article XV, section 23; Laws 1981, 23.8 chapter 224, section 239; and Laws 1991, chapter 96, are 23.9 repealed. 23.10 Subd. 41. [ROCHESTER FIRE; REPEALER.] Laws 1959, chapter 23.11 131; Laws 1969, chapter 694; Laws 1978, chapter 563, section 14; 23.12 Laws 1980, chapter 600, sections 18 and 22; and Laws 1981, 23.13 chapter 224, section 237, are repealed. 23.14 Subd. 42. [ROCHESTER POLICE; REPEALER.] Laws 1969, chapter 23.15 641; Laws 1975, chapter 368, section 54; Laws 1978, chapters 23.16 563, section 23; and 793, section 96; Laws 1980, chapter 600, 23.17 sections 18 and 22; and Laws 1981, chapter 224, section 248, are 23.18 repealed. 23.19 Subd. 43. [ST. CLOUD FIRE; REPEALER.] Laws 1961, chapter 23.20 343; Laws 1963, chapter 453; Laws 1967, chapter 702; Laws 1974, 23.21 chapter 382; Laws 1977, chapter 270; Laws 1978, chapter 690, 23.22 sections 9 and 10; and Laws 1982, chapter 402, are repealed. 23.23 Subd. 44. [ST. CLOUD POLICE; REPEALER.] Laws 1973, chapter 23.24 432; Laws 1980, chapter 341, sections 2, 3, 4, and 5; Laws 1984, 23.25 chapter 574, section 25; and Laws 1999, chapter 222, article 3, 23.26 section 6, are repealed. 23.27 Subd. 45. [ST. LOUIS PARK FIRE; REPEALER.] Laws 1967, 23.28 chapter 730; Laws 1969, chapter 576; Laws 1978, chapter 563, 23.29 section 22; Laws 1981, chapter 224, section 247; and Laws 1985, 23.30 chapter 261, sections 32, 33, 34, and 35, are repealed. 23.31 Subd. 46. [ST. LOUIS PARK POLICE; REPEALER.] Laws 1963, 23.32 chapter 454; Laws 1980, chapter 600, section 17; Laws 1984, 23.33 chapter 574, section 19; and Laws 1990, chapter 589, article 1, 23.34 section 7, are repealed. 23.35 Subd. 47. [ST. PAUL FIRE; REPEALER.] Laws 1917, chapter 23.36 196; Laws 1919, chapter 515; Laws 1955, chapter 375; Laws 1957, 24.1 chapters 256 and 257; Laws 1961, chapter 376; Laws 1963, chapter 24.2 221; Laws 1965, chapter 790; Laws 1967, chapters 644 and 708; 24.3 Laws 1969, chapters 443, 669, and 671; Laws 1973, chapter 287; 24.4 Laws 1975, chapter 423; Laws 1977, chapter 164, section 1; Laws 24.5 1981, chapter 68, section 35; Laws 1989, chapter 319, article 24.6 11, section 12; Laws 1992, chapters 422 and 563, sections 3, 4, 24.7 and 5; Laws 1993, chapter 110; Laws 1996, chapter 448, article 24.8 2, section 1; and Laws 1997, chapter 241, article 2, sections 11 24.9 and 15, are repealed. 24.10 Subd. 48. [ST. PAUL POLICE; REPEALER.] Special Laws 1889, 24.11 chapter 425; Special Laws 1891, chapter 11; Laws 1897, chapters 24.12 389 and 390; Laws 1919, chapter 68; Laws 1921, chapter 118; Laws 24.13 1923, chapter 54; Laws 1925, chapter 197; Laws 1955, chapter 24.14 151; Laws 1961, chapters 434 and 435, section 2; Laws 1963, 24.15 chapter 271; Laws 1965, chapter 465; Laws 1969, chapters 442, 24.16 668, and 671; Laws 1971, chapter 549; Laws 1973, chapter 286; 24.17 Laws 1980, chapter 600, sections 12, 13, 14, and 15; Laws 1981, 24.18 chapter 68, section 34; Laws 1983, chapter 47; Laws 1988, 24.19 chapter 709, article 8, section 5; Laws 1989, chapter 319, 24.20 article 11, sections 2 and 12; Laws 1992, chapters 393, section 24.21 1; 563, section 5; and 586, section 1; Laws 1994, chapter 409; 24.22 Laws 1996, chapter 448, article 2, section 1; and Laws 1997, 24.23 chapter 241, article 2, sections 11 and 15, are repealed. 24.24 Subd. 49. [SOUTH ST. PAUL FIRE; REPEALER.] Laws 1943, 24.25 chapter 397; Laws 1947, chapter 274; Laws 1949, chapter 281; 24.26 Laws 1951, chapters 233 and 420; Laws 1953, chapters 44 and 406; 24.27 Laws 1957, chapter 127; Laws 1961, chapter 747; Laws 1963, 24.28 chapter 715; Laws 1965, chapter 457; Laws 1969, chapter 849; and 24.29 Laws 1971, chapter 178, are repealed. 24.30 Subd. 50. [SOUTH ST. PAUL POLICE; REPEALER.] Laws 1994, 24.31 chapter 541, section 3, is repealed. 24.32 Subd. 51. [THIEF RIVER FALLS POLICE; REPEALER.] Laws 1981, 24.33 chapters 68, sections 41 and 42; 224, sections 272 and 273; Laws 24.34 1985, chapter 261, section 14; and Laws 1992, chapter 431, 24.35 section 1, are repealed. 24.36 Subd. 52. [VIRGINIA POLICE; REPEALER.] Laws 1935, chapters 25.1 92 and 259; Laws 1937, chapter 197; Laws 1949, chapter 235; Laws 25.2 1965, chapter 174; Laws 1982, chapter 574, sections 3, 4, 5, 6, 25.3 and 8; Laws 1985, chapter 261, sections 15 and 16; Laws 1989, 25.4 chapter 319, article 11, section 4; and Laws 1992, chapter 392, 25.5 section 1, are repealed. 25.6 Subd. 53. [WEST ST. PAUL FIRE; REPEALER.] Laws 1961, 25.7 chapter 399; Laws 1965, chapter 540; Laws 1982, chapter 610, 25.8 sections 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, and 20; 25.9 and Laws 1984, chapter 574, section 33, are repealed. 25.10 Subd. 54. [WEST ST. PAUL POLICE; REPEALER.] Laws 1965, 25.11 chapter 174; Laws 1967, chapter 751; Laws 1981, chapter 297, 25.12 sections 1 and 2; Laws 1987, chapter 372, article 2, section 10; 25.13 and Laws 1995, chapter 262, article 10, section 4, are repealed. 25.14 Subd. 55. [WINONA FIRE; REPEALER.] Extra Session Laws 25.15 1961, chapter 80; Laws 1963, chapter 443; and Laws 1967, chapter 25.16 848, are repealed. 25.17 Subd. 56. [WINONA POLICE; REPEALER.] Laws 1959, chapter 25.18 108; Extra Session Laws 1961, chapter 80; Laws 1977, chapter 25.19 429, section 62; Laws 1986, chapter 359, sections 22, 23, 24, 25.20 and 25; and Laws 1988, chapter 709, article 9, section 5, are 25.21 repealed. 25.22 Subd. 57. [OTHER REPEALER.] Minnesota Statutes 2000, 25.23 sections 69.78; 297I.10, subdivision 2; and 423A.03, are 25.24 repealed. 25.25 Sec. 10. [EFFECTIVE DATE.] 25.26 Sections 1 to 9 are effective on July 1, 2002. 25.27 ARTICLE 2 25.28 PERA MEMBERSHIP ELIGIBILITY 25.29 AND SERVICE CREDIT PRORATION 25.30 Section 1. Minnesota Statutes 2001 Supplement, section 25.31 353.01, subdivision 2a, is amended to read: 25.32 Subd. 2a. [INCLUDED EMPLOYEES.] (a) Public employees whose 25.33 salary from one governmental subdivision exceeds $425 in any 25.34 month shall participate as members of the association. If the 25.35 salary is less than $425 in a subsequent month, the employee 25.36 retains membership eligibility. Eligible public employees shall 26.1 participate as members of the association with retirement 26.2 coverage by the public employees retirement plan or the public 26.3 employees police and fire retirement plan under this chapter, or 26.4 the local government correctional employees retirement plan 26.5 under chapter 353E, whichever applies, as a condition of their 26.6 employment on the first day of employment unless they: 26.7 (1) are specifically excluded under subdivision 2b; 26.8 (2) do not exercise their option to elect retirement 26.9 coverage in the association as provided in subdivision 2d, 26.10 paragraph (a); or 26.11 (3) are employees of the governmental subdivisions listed 26.12 in subdivision 2d, paragraph (b), where the governmental 26.13 subdivision has not elected to participate as a governmental 26.14 subdivision covered by the association. 26.15 (b) A public employee who was a member of the association 26.16 on June 30, 2002, based on employment that qualified for 26.17 membership coverage by the public employees retirement plan or 26.18 the public employees police and fire plan under this chapter, or 26.19 the local government correctional employees retirement plan 26.20 under chapter 353E as of June 30, 2002, retains that membership 26.21 until the employee terminates public employment under 26.22 subdivision 11a or terminates membership under subdivision 11b. 26.23 Sec. 2. Minnesota Statutes 2001 Supplement, section 26.24 353.01, subdivision 2b, is amended to read: 26.25 Subd. 2b. [EXCLUDED EMPLOYEES.] The following public 26.26 employees are not eligible to participate as members of the 26.27 association with retirement coverage by the public employees 26.28 retirement plan, the local government correctional employees 26.29 retirement plan under chapter 353E, or the public employees 26.30 police and fire retirement plan: 26.31 (1) public officers, other than county sheriffs, who are 26.32 elected to a governing body, or persons who are appointed to 26.33 fill a vacancy in an elective office of a governing body, whose 26.34 term of office first commences on or after July 1, 2002, for the 26.35 service to be rendered in that elective position. Elected 26.36 governing body officials who were active members of the 27.1 association's coordinated or basic retirement plans as of June 27.2 30, 2002, continue participation throughout incumbency in office 27.3 until termination of public service occurs as defined in 27.4 subdivision 11a; 27.5 (2) election officers or election judges; 27.6 (3) patient and inmate personnel who perform services for a 27.7 governmental subdivision; 27.8 (4) employees who are hired for a temporary position under 27.9 subdivision 12a, and employees who resign from a nontemporary 27.10 position and accept a temporary position within 30 days in the 27.11 same governmental subdivision. An employer must not apply the 27.12 definition of temporary position so as to exclude employees who 27.13 are hired to fill positions that are permanent or that are for 27.14 an unspecified period but who are serving a probationary period 27.15 at the start of the employment. If the period of employment 27.16 extends beyond six consecutive months and the employee earns 27.17 more than $425 from one governmental subdivision in any calendar 27.18 month, the department head shall report the employee for 27.19 membership and require employee deductions be made on behalf of 27.20 the employee under section 353.27, subdivision 4. 27.21 The membership eligibility of an employee who resigns or is 27.22 dismissed from a temporary position and within 30 days accepts 27.23 another temporary position in the same governmental subdivision 27.24 is determined on the total length of employment rather than on 27.25 each separate position. Membership eligibility of an employee 27.26 who holds concurrent temporary and nontemporary positions in one 27.27 governmental subdivision is determined by the length of 27.28 employment and salary of each separate position; 27.29 (5) employees who are employed by reason of work emergency 27.30 caused by fire, flood, storm, or similar disaster; 27.31 (6) employees who by virtue of their employment in one 27.32 governmental subdivision are required by law to be a member of 27.33 and to contribute to any of the plans or funds administered by 27.34 the Minnesota state retirement system, the teachers retirement 27.35 association, the Duluth teachers retirement fund association, 27.36 the Minneapolis teachers retirement association, the St. Paul 28.1 teachers retirement fund association, the Minneapolis employees 28.2 retirement fund, or any police or firefighters relief 28.3 association governed by section 69.77 that has not consolidated 28.4 with the public employees retirement association, or any local 28.5 police or firefighters consolidation account but who have not 28.6 elected the type of benefit coverage provided by the public 28.7 employees police and fire fund under sections 353A.01 to 28.8 353A.10, or any persons covered by section 353.665, subdivision 28.9 4, 5, or 6, who have not elected public employees police and 28.10 fire plan benefit coverage. This clause must not be construed 28.11 to prevent a person from being a member of and contributing to 28.12 the public employees retirement association and also belonging 28.13 to and contributing to another public pension fund for other 28.14 service occurring during the same period of time. A person who 28.15 meets the definition of "public employee" in subdivision 2 by 28.16 virtue of other service occurring during the same period of time 28.17 becomes a member of the association unless contributions are 28.18 made to another public retirement fund on the salary based on 28.19 the other service or to the teachers retirement association by a 28.20 teacher as defined in section 354.05, subdivision 2; 28.21 (7) persons who are members of a religious order and are 28.22 excluded from coverage under the federal Old Age, Survivors, 28.23 Disability, and Health Insurance Program for the performance of 28.24 service as specified in United States Code, title 42, section 28.25 410(a)(8)(A), as amended through January 1, 1987, if no 28.26 irrevocable election of coverage has been made under section 28.27 3121(r) of the Internal Revenue Code of 1954, as amended; 28.28 (8) employeeswho at the time they are hired by aof a 28.29 governmental subdivision who have not reached the age of 23 and 28.30 are enrolled on a full-time basis to attend or are attending 28.31 classes at an accredited school, college, or university in an 28.32 undergraduate, graduate, or professional-technical program, or a 28.33 public or charter high school, if the employment is predicated28.34on the student status of the individual; 28.35 (9) resident physicians, medical interns, and pharmacist 28.36 residents and pharmacist interns who are serving in a degree or 29.1 residency program in public hospitals; 29.2 (10) students who are serving in an internship or residency 29.3 program sponsored by an accredited educational institution; 29.4 (11) persons who hold a part-time adult supplementary 29.5 technical college license who render part-time teaching service 29.6 in a technical college; 29.7 (12) except for employees of Hennepin county, foreign 29.8 citizens working for a governmental subdivision with a work 29.9 permit of less than three years, or an H-1b visa valid for less 29.10 than three years of employment. Upon notice to the association 29.11 that the work permit or visa extends beyond the three-year 29.12 period, the foreign citizens areeligibleto be reported for 29.13 membership from the date of the extension; 29.14 (13) public hospital employees who elected not to 29.15 participate as members of the association before 1972 and who 29.16 did not elect to participate from July 1, 1988, to October 1, 29.17 1988; 29.18 (14) except as provided in section 353.86, volunteer 29.19 ambulance service personnel, as defined in subdivision 35, but 29.20 persons who serve as volunteer ambulance service personnel may 29.21 still qualify as public employees under subdivision 2 and may be 29.22 members of the public employees retirement association and 29.23 participants in the public employees retirement fund or the 29.24 public employees police and fire fund, whichever applies, on the 29.25 basis of compensation received from public employment service 29.26 other than service as volunteer ambulance service personnel; 29.27 (15) except as provided in section 353.87, volunteer 29.28 firefighters, as defined in subdivision 36, engaging in 29.29 activities undertaken as part of volunteer firefighter duties; 29.30 provided that a person who is a volunteer firefighter may still 29.31 qualify as a public employee under subdivision 2 and may be a 29.32 member of the public employees retirement association and a 29.33 participant in the public employees retirement fund or the 29.34 public employees police and fire fund, whichever applies, on the 29.35 basis of compensation received from public employment activities 29.36 other than those as a volunteer firefighter; 30.1 (16) pipefitters and associated trades personnel employed 30.2 by independent school district No. 625, St. Paul, with coverage 30.3 under a collective bargaining agreement by the pipefitters local 30.4 455 pension plan who were either first employed after May 1, 30.5 1997, or, if first employed before May 2, 1997, elected to be 30.6 excluded under Laws 1997, chapter 241, article 2, section 12; 30.7 (17) electrical workers, plumbers, carpenters, and 30.8 associated trades personnel employed by independent school 30.9 district No. 625, St. Paul, or the city of St. Paul, who have 30.10 retirement coverage under a collective bargaining agreement by 30.11 the electrical workers local 110 pension plan, the united 30.12 association plumbers local 34 pension plan, or the carpenters 30.13 local 87 pension plan who were either first employed after May 30.14 1, 2000, or, if first employed before May 2, 2000, elected to be 30.15 excluded under Laws 2000, chapter 461, article 7, section 5; 30.16 (18) bricklayers, allied craftworkers, cement masons, 30.17 glaziers, glassworkers, painters, allied tradesworkers, and 30.18 plasterers employed by the city of St. Paul or independent 30.19 school district No. 625, St. Paul, with coverage under a 30.20 collective bargaining agreement by the bricklayers and allied 30.21 craftworkers local 1 pension plan, the cement masons local 633 30.22 pension plan, the glaziers and glassworkers local L-1324 pension 30.23 plan, the painters and allied trades local 61 pension plan, or 30.24 the Twin Cities plasterers local 265 pension plan who were 30.25 either first employed after May 1, 2001, or if first employed 30.26 before May 2, 2001, elected to be excluded under Laws 2001, 30.27 First Special Session chapter 10, article 10, section 6; 30.28 (19) plumbers employed by the metropolitan airports 30.29 commission, with coverage under a collective bargaining 30.30 agreement by the plumbers local 34 pension plan, who either were 30.31 first employed after May 1, 2001, or if first employed before 30.32 May 2, 2001, elected to be excluded under Laws 2001, First 30.33 Special Session chapter 10, article 10, section 6; 30.34 (20) employees who are hired after June 30, 2002, to fill 30.35 seasonal positions under subdivision 12b which are limited in 30.36 duration by the employer to 185 consecutive calendar days or 31.1 less in each business year of the governmental subdivision; 31.2 (21) persons who are provided supported employment or 31.3 work-study positions by a governmental subdivision and who 31.4 participate in an employment or industries program maintained 31.5 for the benefit of these persons where the governmental 31.6 subdivision limits the position's duration to three years or 31.7 less, including persons participating in a federal or state 31.8 subsidized on-the-job training, work experience, senior citizen, 31.9 youth, or unemployment relief program where the training or work 31.10 experience is not provided as a part of, or for, future 31.11 permanent public employment; 31.12 (22) independent contractors and the employees of 31.13 independent contractors; and 31.14 (23) reemployed annuitants of the association during the 31.15 course of that reemployment. 31.16 Sec. 3. Minnesota Statutes 2001 Supplement, section 31.17 353.01, subdivision 11b, is amended to read: 31.18 Subd. 11b. [TERMINATION OF MEMBERSHIP.] (a) "Termination 31.19 of membership" means the conclusion of membership in the 31.20 association and occurs: 31.21 (1) upon termination of public service under subdivision 31.22 11a; 31.23 (2) when a member does not return to work within 30 days of 31.24 the expiration of an authorized temporary layoff under 31.25 subdivision 12 or an authorized leave of absence under 31.26 subdivision 31 as evidenced by the appropriate record filed by 31.27 the governmental subdivision; or 31.28 (3) when a person files a written election to discontinue 31.29 employee deductions under section 353.27, subdivision 7, 31.30 paragraph (a), clause (1). 31.31 (b) The termination of membership must be reported to the 31.32 association by the governmental subdivision. 31.33 (c) If the employee subsequently returns to a position in 31.34 the same governmental subdivision, the employee shall not again 31.35 be required to earn a salary in excess of $425 per month to 31.36 qualify for membership, unless the employee has taken a refund 32.1 of accumulated employee deduction plus interest under section 32.2 353.34, subdivision 1. 32.3 Sec. 4. Minnesota Statutes 2001 Supplement, section 32.4 353.01, subdivision 16, is amended to read: 32.5 Subd. 16. [ALLOWABLE SERVICE; LIMITS AND COMPUTATION.] (a) 32.6 "Allowable service" means: 32.7 (1) service during years of actual membership in the course 32.8 of which employee contributions were made, periods covered by 32.9 payments in lieu of salary deductions under section 353.35; 32.10 (2) service in years during which the public employee was 32.11 not a member but for which the member later elected, while a 32.12 member, to obtain credit by making payments to the fund as 32.13 permitted by any law then in effect; 32.14 (3) a period of authorized leave of absence with pay from 32.15 which deductions for employee contributions are made, deposited, 32.16 and credited to the fund; 32.17 (4) a period of authorized personal, parental, or medical 32.18 leave of absence without pay, including a leave of absence 32.19 covered under the federal Family Medical Leave Act, that does 32.20 not exceed one year, and during or for which a member obtained 32.21full or fractionalservice credit for each month in the leave 32.22 period by payments to the fund made in place of salary 32.23 deductions. The payments must be made in an amount or amounts 32.24 based on the member's average salary on which deductions were 32.25 paid for the last six months of public service, or for that 32.26 portion of the last six months while the member was in public 32.27 service, to apply to the period in either case that immediately 32.28 precedes the commencement of the leave of absence. If the 32.29 employee elects to pay the employee contributions for the period 32.30 of any authorized personal, parental, or medical leave of 32.31 absence without pay, or for any portion of the leave, the 32.32 employee shall also, as a condition to the exercise of the 32.33 election, pay to the fund an amount equivalent to the required 32.34 employer and the additional employer contributions, if any, for 32.35 the employee. The payment must be made within one year from the 32.36 expiration of the leave of absence or within 20 days after 33.1 termination of public service under subdivision 11a, whichever 33.2 is earlier. The employer,ifby appropriate action of its 33.3 governing body,which is made a part of its official records,33.4 and which is adopted before the date of the first payment of the 33.5 employee contribution, may certify to the association in writing 33.6 its commitment to pay the employer and additional employer 33.7 contributions from the proceeds of a tax levy made under section 33.8 353.28. Payments under this paragraph must include interest at 33.9 an annual rate of 8.5 percent compounded annually from the date 33.10 of the termination of the leave of absence to the date payment 33.11 is made. An employee shall return to public service and render 33.12 a minimum of three months of allowable service in order to be 33.13 eligible to pay employee and employer contributions for a 33.14 subsequent authorized leave of absence without pay. Upon 33.15 payment, the employee must be granted allowable service credit 33.16 forfull calendar months or fractions of a month duringthe 33.17leavepurchased periodas described in paragraph (d), clauses (1)33.18and (2), based on the salary or the compensated hours used in33.19computing the payment amount; 33.20 (5) a periodic, repetitive leave that is offered to all 33.21 employees of a governmental subdivision. The leave program may 33.22 not exceed 208 hours per annual normal work cycle as certified 33.23 to the association by the employer. A participating member 33.24 obtains service credit by making employee contributions in an 33.25 amount or amounts based on the member's average salary that 33.26 would have been paid if the leave had not been taken. The 33.27 employer shall pay the employer and additional employer 33.28 contributions on behalf of the participating member. The 33.29 employee and the employer are responsible to pay interest on 33.30 their respective shares at the rate of 8.5 percent a year, 33.31 compounded annually, from the end of the normal cycle until full 33.32 payment is made. An employer shall also make the employer and 33.33 additional employer contributions, plus 8.5 percent interest, 33.34 compounded annually, on behalf of an employee who makes employee 33.35 contributions but terminates public service. The employee 33.36 contributions must be made within one year after the end of the 34.1 annual normal working cycle or within 20 days after termination 34.2 of public service, whichever is sooner. The association shall 34.3 prescribe the manner and forms to be used by a governmental 34.4 subdivision in administering a periodic, repetitive leave. Upon 34.5 payment, the member must be granted allowable service credit for 34.6full calendar months or fractions of a month duringtheleave34.7 purchased periodas described in paragraph (d), clauses (1) and34.8(2), based on the salary or the compensated hours used in34.9computing the payment amount; 34.10 (6) an authorized temporary layoff under subdivision 12.34.11For temporary layoffs that begin before January 1, 2002,34.12allowable service credit is, limited to three months allowable 34.13 service per authorized temporary layoff in one calendar year. 34.14For temporary layoffs that begin on or after January 1, 2002,34.15allowable service credit for the calendar month in which the34.16member does not receive salary due to the layoff must be34.17determined using the following formula:34.18(i) members who earned one month of allowable service34.19credit for each of the nine calendar months of compensated34.20employment with the governmental subdivision authorizing the34.21layoff that immediately preceded the layoff shall receive one34.22month of allowable service credit, limited to three months of34.23allowable service credit per year, for each month of the34.24temporary layoff; or34.25(ii) members who earned less than nine months of allowable34.26service credit in the year of compensated employment with the34.27governmental subdivision authorizing the layoff that immediately34.28preceded the layoff shall receive allowable service credit on a34.29fractional basis for each month of the authorized layoff,34.30limited to three months of allowable service credit, determined34.31by dividing the total number of months of service credit earned34.32for the compensated employment by nine and multiplying the34.33resulting number by the total number of months in the layoff34.34period that are not compensatedAn employee who has received the 34.35 maximum service allowed for an authorized temporary layoff shall 34.36 return to public service and receive a minimum of three months 35.1 of allowable service to receive allowable service for a 35.2 subsequent authorized temporary layoff; or 35.3 (7) a period during which a member is on an authorized 35.4 leave of absence to enter military service in the armed forces 35.5 of the United States, provided that the member returns to public 35.6 service upon discharge from military service under section 35.7 192.262 and pays into the fund employee contributions based upon 35.8 the employee's salary at the date of return from military 35.9 service. Payment must be made within three times the length of 35.10 the military leave period, or five years of the date of 35.11 discharge from the military service, whichever is less. Payment 35.12 cannot be accepted following 20 days after termination of public 35.13 service under subdivision 11a. The amount of these 35.14 contributions must be in accord with the contribution rates and 35.15 salary limitations, if any, in effect during the leave, plus 35.16 interest at an annual rate of 8.5 percent compounded annually 35.17 from the date of return to public service to the date payment is 35.18 made. Thematchingcorresponding employer contribution, and 35.19 additional employer contributionunder section 353.27,35.20subdivisions 3 and 3a, if applicable, must be paid by the 35.21 governmental subdivision employing the member upon return to 35.22 public service if the member makes the employee contributions. 35.23 The governmental subdivision involved may appropriate money for 35.24 those payments. A member may not receive credit for a voluntary 35.25 extension of military service at the instance of the member 35.26 beyond the initial period of enlistment, induction, or call to 35.27 active duty. Upon payment, the employee must be granted 35.28 allowable service credit forfull calendar months or fractions35.29of a month duringtheleavepurchased periodas described in35.30paragraph (d), clauses (1) and (2), based on the salary or35.31compensated hours used in computing the payment amount. 35.32 (b) For calculating benefits under sections 353.30, 353.31, 35.33 353.32, and 353.33 for state officers and employees displaced by 35.34 the Community Corrections Act, chapter 401, and transferred into 35.35 county service under section 401.04, "allowable service" means 35.36 combined years of allowable service as defined in paragraph (a), 36.1 clauses (1) to (6), and section 352.01, subdivision 11. 36.2 (c) For a public employee who has prior service covered by 36.3 a local police or firefighters relief association that has 36.4 consolidated with the public employees retirement association or 36.5 to which section 353.665 applies, and who has elected the type 36.6 of benefit coverage provided by the public employees police and 36.7 fire fund either under section 353A.08 following the 36.8 consolidation or under section 353.665, subdivision 4, 36.9 "applicable service" is a period of service credited by the 36.10 local police or firefighters relief association as of the 36.11 effective date of the consolidation based on law and on bylaw 36.12 provisions governing the relief association on the date of the 36.13 initiation of the consolidation procedure. 36.14 (d)For persons who, after January 1, 2002, either first36.15become members or terminated membership under subdivision 11b,36.16and again become members, of the public employees retirement36.17plan, the public employees police and fire plan under this36.18chapter, or the local government correctional employee36.19retirement plan under chapter 353E, whichever applies,36.20"allowable service" means credit for compensated hours from36.21which deductions are made, or for which payments are made in36.22lieu of salary deductions as provided under this subdivision,36.23and which are deposited and credited in the fund as provided in36.24section 353.27, determined as follows:36.25(1) one month of allowable service credit for each month36.26during which the employee has received salary for 80 or more36.27compensated hours; or36.28(2) a fraction of one month of allowable service for each36.29month for which the employee has received salary for less than36.3080 compensated hours equal to the percentage relationship that36.31the number of compensated hours bear to 80 hours.36.32(e) Elected officials and other public employees who are36.33compensated solely on an annual basis shall be granted a full36.34year of credit for each year for which compensation is earned.36.35(f) Allowable service that is determined and credited on a36.36fractional basis must be used only in calculating the amount of37.1benefits payable. In determining the length of service required37.2for vesting, a member shall be granted a month of service credit37.3for each month in which the member received compensation from37.4which employee contributions were deducted. For periods of37.5part-time service that are duplicated service credit, section37.6356.30, subdivision 1, paragraphs (g) and (h), govern.37.7(g)No member shall receive more than 12 months of 37.8 allowable service credit in a year either for vesting purposes 37.9 or for benefit calculation purposes. 37.10(h)(e) "Allowable service" also means a period purchased 37.11 under section 356.555. 37.12 Sec. 5. Minnesota Statutes 2000, section 353.01, is 37.13 amended by adding a subdivision to read: 37.14 Subd. 40. [REDUCED SALARY DURING PERIOD OF WORKERS' 37.15 COMPENSATION.] (a) A member who is receiving temporary workers' 37.16 compensation payments related to the member's service to the 37.17 public employer and who either is receiving a reduced salary 37.18 from the employer or is receiving no salary from the employer is 37.19 entitled to receive allowable service credit for the period of 37.20 time that the member is receiving the workers' compensation 37.21 payments upon making the payments specified in this subdivision. 37.22 (b) The differential salary amount is the difference 37.23 between the salary received, if any, during the period of time 37.24 that the member is collecting temporary workers' compensation 37.25 payments, and the member's average salary on which contributions 37.26 were made for the last six months of covered employment 37.27 immediately before collecting the workers' compensation payments. 37.28 (c) To receive eligible service credit, the member shall 37.29 pay an amount equal to the applicable employee contribution rate 37.30 under section 353.27, subdivision 2; 353.65, subdivision 2; or 37.31 353E.03, subdivision 1, as applicable, multiplied by the 37.32 differential salary amount; plus an employer equivalent payment 37.33 equal to the applicable employer contribution rate in section 37.34 353.27, subdivision 3; 353.65, subdivision 3; or 353E.03, 37.35 subdivision 2, as applicable, multiplied by the differential 37.36 salary amount; plus, if applicable, an equivalent employer 38.1 additional amount equal to the additional employer contribution 38.2 rate in section 353.27, subdivision 3a, multiplied by the 38.3 differential salary amount. 38.4 (d) The employer may, by appropriate action of its 38.5 governing body and specified in its official records, pay the 38.6 employer equivalent contributions and, as applicable, the 38.7 equivalent employer additional contributions on behalf of the 38.8 member. 38.9 (e) Payment under this subdivision must include interest at 38.10 an 8.5 percent annual rate prorated for applicable months from 38.11 the date the temporary workers' compensation payments terminate 38.12 to the date the payment or payments are received by the 38.13 executive director. Payment under this subdivision must be 38.14 completed within one year of the termination of the workers' 38.15 compensation payments to the member, or within 20 days after 38.16 termination of public service under subdivision 11a, whichever 38.17 is earlier. 38.18 Sec. 6. Minnesota Statutes 2001 Supplement, section 38.19 353.27, subdivision 4, is amended to read: 38.20 Subd. 4. [EMPLOYER REPORTING REQUIREMENTS; CONTRIBUTIONS; 38.21 MEMBER STATUS.] (a) A representative authorized by the head of 38.22 each department shall deduct employee contributions from the 38.23 salary of each employee who qualifies for membership under this 38.24 chapter and remit payment in a manner prescribed by the 38.25 executive director for the aggregate amount of the employee 38.26 contributions, the employer contributions and the additional 38.27 employer contributions to be received within 14 calendar days. 38.28 The head of each department or the person's designee shall for 38.29 each pay period submit to the association a salary deduction 38.30 report in the format prescribed by the executive director. Data 38.31 to be submitted as part of salary deduction reporting must 38.32 include, but are not limited to: 38.33 (1) the legal names and social security numbers of 38.34 employees who are members; 38.35 (2) the amount of each employee's salary deduction; 38.36 (3) the amount of salary from which each deduction was 39.1 made; 39.2 (4) the beginning and ending dates of the payroll period 39.3 covered and the date of actual payment; and 39.4 (5) adjustments or corrections covering past pay periods;39.5and39.6(6) the number of compensated hours of each employee during39.7the payroll period. 39.8 (b) Employers must furnish the data required for enrollment 39.9 for each new employee who qualifies for membership in the format 39.10 prescribed by the executive director. The required enrollment 39.11 data on new employees must be submitted to the association prior 39.12 to or concurrent with the submission of the initial employee 39.13 salary deduction. The employer shall also report to the 39.14 association all member employment status changes, such as leaves 39.15 of absence, terminations, and death, and the effective dates of 39.16 those changes, on an ongoing basis for the payroll cycle in 39.17 which they occur. The employer shall furnish data, forms, and 39.18 reports as may be required by the executive director for proper 39.19 administration of the retirement system. Before implementing 39.20 new or different computerized reporting requirements, the 39.21 executive director shall give appropriate advance notice to 39.22 governmental subdivisions to allow time for system modifications. 39.23 (c) Notwithstanding paragraph (a), the association may 39.24 provide for less frequent reporting and payments for small 39.25 employers. 39.26 Sec. 7. Minnesota Statutes 2001 Supplement, section 39.27 353.27, subdivision 11, is amended to read: 39.28 Subd. 11. [EMPLOYERS; REQUIRED TO FURNISH REQUESTED 39.29 INFORMATION.] All governmental subdivisions shall furnish 39.30 promptly such other information relative to the employment 39.31 status of all employees or former employees, including but not 39.32 limited to payroll abstracts pertaining to all past and present 39.33 employees, as may be requested by the association or its 39.34 executive director, including schedules of salaries applicable 39.35 to various categories of employment, and the number of actual or39.36estimated compensated hours for employees. In the event payroll 40.1 abstract records have been lost or destroyed, for whatever 40.2 reason or in whatever manner, so that such schedules of salaries 40.3 cannot be furnished therefrom, the employing governmental 40.4 subdivision, in lieu thereof, shall furnish to the association 40.5 an estimate of the earnings of any employee or former employee 40.6 for any period as may be requested by the association or its 40.7 executive director. Should the association receive such 40.8 schedules of estimated earnings, the executive director is 40.9 hereby authorized to use the same as a basis for making whatever 40.10 computations might be necessary for determining obligations of 40.11 the employee and employer to the retirement fund. If estimates 40.12 are not furnished by the employer pursuant to the request of the 40.13 association or its executive director, the association may 40.14 estimate the obligations of the employee and employer to the 40.15 retirement fund based upon such records as are in its 40.16 possession. Where payroll abstracts have been lost or 40.17 destroyed, the governmental agency need not furnish any 40.18 information pertaining to employment prior to July 1, 1963. The 40.19 association shall make no estimate of any obligation of any 40.20 employee, former employee, or employer covering employment prior 40.21 to July 1, 1963. 40.22 Sec. 8. [REPEALER.] 40.23 Minnesota Statutes 2001 Supplement, section 353.01, 40.24 subdivision 39, is repealed. 40.25 Sec. 9. [EFFECTIVE DATE.] 40.26 (a) Except as provided in paragraph (b), sections 1 to 4 40.27 and 6 to 8 are effective retroactively from January 1, 2002. 40.28 (b) The amendment to Minnesota Statutes, section 353.01, 40.29 subdivision 2b, clause (12), in section 1, is effective on the 40.30 day after the date on which the governing body of Hennepin 40.31 county and the chief clerical officer of the county complete in 40.32 a timely manner their compliance with Minnesota Statutes, 40.33 section 645.021, subdivisions 2 and 3. 40.34 (c) Section 5 is effective on the day following final 40.35 enactment. 40.36 ARTICLE 3 41.1 PERA LOCAL GOVERNMENT CORRECTIONAL 41.2 RETIREMENT PLAN MODIFICATIONS 41.3 Section 1. Minnesota Statutes 2000, section 353E.02, 41.4 subdivision 1, is amended to read: 41.5 Subdivision 1. [RETIREMENT COVERAGE.]Local government41.6correctional service employees areThe members of the local 41.7 government correctional service retirement plan established by 41.8 this chapter are: 41.9 (1) local government correctional service employees as 41.10 defined in subdivision 2; and 41.11 (2) medical center protection officers as defined in 41.12 subdivision 2a. 41.13 Sec. 2. Minnesota Statutes 2000, section 353E.02, is 41.14 amended by adding a subdivision to read: 41.15 Subd. 2a. [MEDICAL CENTER PROTECTION OFFICER.] (a) A 41.16 medical center protection officer, for purposes of subdivision 41.17 1, is a person whom the employer certifies: 41.18 (1) is employed by the Hennepin county medical center as a 41.19 protection officer; 41.20 (2) is directly responsible for the direct security of the 41.21 medical center; 41.22 (3) is expected to respond to any incidents within the 41.23 medical center as part of the person's regular employment duties 41.24 and is trained to do so; and 41.25 (4) is a "public employee" as defined in section 353.01, 41.26 but is not a member of the public employees police and fire plan. 41.27 (b) The certification required under paragraph (a) must be 41.28 made in writing on a form prescribed by the executive director 41.29 of the public employees retirement association. 41.30 Sec. 3. Minnesota Statutes 2000, section 353E.03, is 41.31 amended to read: 41.32 353E.03 [CORRECTIONAL SERVICE PLAN CONTRIBUTIONS.] 41.33 Subdivision 1. [MEMBER CONTRIBUTIONS.] A member of the 41.34 local government correctional serviceemployeeretirement plan 41.35 shall make an employee contribution in an amount equal to 6.01 41.36 percent of salary. 42.1 Subd. 2. [EMPLOYER CONTRIBUTIONS.] The employer shall 42.2 contribute for a member of the local government correctional 42.3 serviceemployeeretirement plan an amount equal to 9.02 percent 42.4 of salary. 42.5 Sec. 4. Laws 2000, chapter 461, article 10, section 3, as 42.6 amended by Laws 2001, First Special Session chapter 10, article 42.7 3, section 28, is amended to read: 42.8 Sec. 3. [EFFECTIVE DATE.] 42.9 Section 1 is effective on the day following final enactment. 42.10Section 2 is effective on the first day of the first full pay42.11period beginning after January 1, 2003.42.12 Sec. 5. [REPEALER.] 42.13 Laws 2000, chapter 461, article 10, section 2, is repealed. 42.14 Sec. 6. [EFFECTIVE DATE.] 42.15 (a) Sections 1, 2, and 3 are effective on July 1, 2002. 42.16 (b) Section 4 is effective on the day following final 42.17 enactment. 42.18 (c) Section 5 is effective on August 1, 2002. 42.19 ARTICLE 4 42.20 PENSION COVERAGE FOR 42.21 PRIVATIZED PUBLIC HOSPITALS 42.22 Section 1. Minnesota Statutes 2000, section 353F.02, 42.23 subdivision 4, is amended to read: 42.24 Subd. 4. [MEDICAL FACILITY.] "Medical facility" means: 42.25 (1) the Glencoe area health center; 42.26 (2) the Luverne public hospital;and42.27 (3) the Waconia-Ridgeview medical center.; and 42.28 (4) the Kanabec hospital. 42.29 Sec. 2. [EFFECTIVE DATE.] 42.30 Section 1 is effective upon the latter of: 42.31 (1) the day after the governing body of Kanabec county and 42.32 its chief clerical officer timely complete their compliance with 42.33 Minnesota Statutes, section 645.021, subdivisions 2 and 3; and 42.34 (2) the first day of the month next following certification 42.35 by the executive director of the public employees retirement 42.36 association that the actuarial accrued liability of the special 43.1 benefit coverage proposed for extension to the privatized 43.2 Kanabec hospital employees under section 1 does not exceed the 43.3 actuarial gain otherwise to be accrued by the public employees 43.4 retirement association, as calculated by the consulting actuary 43.5 retained by the legislative commission on pensions and 43.6 retirement. The cost of the actuarial calculations must be 43.7 borne by the Kanabec hospital. 43.8 ARTICLE 5 43.9 CLOSED CHARTER SCHOOL 43.10 UNPAID RETIREMENT CONTRIBUTIONS 43.11 Section 1. Minnesota Statutes 2001 Supplement, section 43.12 354.05, subdivision 2, is amended to read: 43.13 Subd. 2. [TEACHER.] (a) "Teacher" means: 43.14 (1) a person who renders service as a teacher, supervisor, 43.15 principal, superintendent, librarian, nurse, counselor, social 43.16 worker, therapist, or psychologist inthea publicschools43.17 school of the state located outside of the corporate limits of 43.18the citiesa city of the first class, or in any charter school, 43.19 irrespective of the location of the school, or in any 43.20 charitable, penal, or correctional institutions of a 43.21 governmental subdivision, or who is engaged in educational 43.22 administration in connection with the state public school 43.23 system, but excluding the University of Minnesota, whether the 43.24 position be a public office or an employment, not including 43.25 members or officers of any general governing or managing board 43.26 or body; 43.27 (2) an employee of the teachers retirement association; 43.28 (3) a person who renders teaching service on a part-time 43.29 basis and who also renders other services for a single employing 43.30 unit. A person whose teaching service comprises at least 50 43.31 percent of the combined employment salary is a member of the 43.32 association for all services with the single employing unit. If 43.33 the person's teaching service comprises less than 50 percent of 43.34 the combined employment salary, the executive director must 43.35 determine whether all or none of the combined service is covered 43.36 by the association; or 44.1 (4) a person who is not covered by the plans established 44.2 under chapter 352D, 354A, or 354B and who is employed by the 44.3 board of trustees of the Minnesota state colleges and 44.4 universities system in an unclassified position as: 44.5 (i) a president, vice-president, or dean; 44.6 (ii) a manager or a professional in an academic or an 44.7 academic support program other than specified in item (i); 44.8 (iii) an administrative or a service support faculty 44.9 position; or 44.10 (iv) a teacher or a research assistant. 44.11 (b)Teacher"Teacher" does not mean: 44.12 (1) a person who works for a school or institution as an 44.13 independent contractor as defined by the Internal Revenue 44.14 Service; 44.15 (2) a person employed in subsidized on-the-job training, 44.16 work experience or public service employment as an enrollee 44.17 under the federal Comprehensive Employment and Training Act from 44.18 and after March 30, 1978, unless the person has, as of the later 44.19 of March 30, 1978, or the date of employment, sufficient service 44.20 credit in the retirement association to meet the minimum vesting 44.21 requirements for a deferred retirement annuity, or the employer 44.22 agrees in writing on forms prescribed by the executive director 44.23 to make the required employer contributions, including any 44.24 employer additional contributions, on account of that person 44.25 from revenue sources other than funds provided under the federal 44.26 Comprehensive Training and Employment Act, or the person agrees 44.27 in writing on forms prescribed by the executive director to make 44.28 the required employer contribution in addition to the required 44.29 employee contribution; 44.30 (3) a person holding a part-time adult supplementary 44.31 technical college license who renders part-time teaching service 44.32 or a customized trainer as defined by the Minnesota state 44.33 colleges and universities system in a technical college if (i) 44.34 the service is incidental to the regular nonteaching occupation 44.35 of the person; and (ii) the applicable technical college 44.36 stipulates annually in advance that the part-time teaching 45.1 service or customized training service will not exceed 300 hours 45.2 in a fiscal year and retains the stipulation in its records; and 45.3 (iii) the part-time teaching service or customized training 45.4 service actually does not exceed 300 hours in a fiscal year; or 45.5 (4) a person exempt from licensure under section 122A.30. 45.6 Sec. 2. Minnesota Statutes 2000, section 354A.011, 45.7 subdivision 27, is amended to read: 45.8 Subd. 27. [TEACHER.] (a) "Teacher" means any person who 45.9 renders serviceinfor a public school district, other than a 45.10 charter school, located in the corporate limits of one of the 45.11 cities of the first class which was so classified on January 1, 45.12 1979, as any of the following: 45.13(a)(1) a full-time employee in a position for which a 45.14 valid license from the state department of children, families, 45.15 and learning is required; 45.16(b)(2) an employee of the teachers retirement fund 45.17 association located in the city of the first class unless the 45.18 employee has exercised the option pursuant to Laws 1955, chapter 45.19 10, section 1, to retain membership in the Minneapolis employees 45.20 retirement fund established pursuant to chapter 422A; 45.21(c)(3) a part-time employee in a position for which a 45.22 valid license from the state department of children, families, 45.23 and learning is required; or 45.24(d)(4) a part-time employee in a position for which a 45.25 valid license from the state department of children, families, 45.26 and learning is required who also renders other nonteaching 45.27 services for the school district, unless the board of trustees 45.28 of the teachers retirement fund association determines that the 45.29 combined employment is on the whole so substantially dissimilar 45.30 to teaching service that the serviceshallmay not be covered by 45.31 the association. 45.32 (b) The termshalldoes not mean any person who renders 45.33 service in the school district as any of the following: 45.34 (1) an independent contractor or the employee of an 45.35 independent contractor; 45.36 (2) an employee who is a full-time teacher covered by the 46.1 teachers retirement association or by another teachers 46.2 retirement fund association established pursuant to this chapter 46.3 or chapter 354; 46.4 (3) an employee exempt from licensure pursuant to section 46.5 122A.30; 46.6 (4) an employee who is a teacher in a technical college 46.7 located in a city of the first class unless the person elects 46.8 coverage by the applicable first class city teacher retirement 46.9 fund association under section 354B.21, subdivision 2;or46.10 (5) a teacher employed by a charter school, irrespective of 46.11 the location of the school; or 46.12 (6) an employee who is a part-time teacher in a technical 46.13 college in a city of the first class and who has elected 46.14 coverage by the applicable first class city teacher retirement 46.15 fund association under section 354B.21, subdivision 2, but (i) 46.16 the teaching service is incidental to the regular nonteaching 46.17 occupation of the person; (ii) the applicable technical college 46.18 stipulates annually in advance that the part-time teaching 46.19 service will not exceed 300 hours in a fiscal year; and (iii) 46.20 the part-time teaching actually does not exceed 300 hours in the 46.21 fiscal year to which the certification applies. 46.22 Sec. 3. Minnesota Statutes 2000, section 354A.12, 46.23 subdivision 3d, is amended to read: 46.24 Subd. 3d. [SUPPLEMENTAL ADMINISTRATIVE EXPENSE 46.25 ASSESSMENT.] (a) The active and retired membership of the 46.26 Minneapolis teachers retirement fund association and of the St. 46.27 Paul teachers retirement fund association is responsible for 46.28 defraying supplemental administrative expenses other than 46.29 investment expenses of the respective teacher retirement fund 46.30 association. 46.31 (b) Investment expenses of the teachers retirement fund 46.32 association are those expenses incurred by or on behalf of the 46.33 retirement fund in connection with the investment of the assets 46.34 of the retirement fund other than investment security 46.35 transaction costs. Other administrative expenses are all 46.36 expenses incurred by or on behalf of the retirement fund for all 47.1 other retirement fund functions other than the investment of 47.2 retirement fund assets. Investment and other administrative 47.3 expenses must be accounted for using generally accepted 47.4 accounting principles and in a manner consistent with the 47.5 comprehensive annual financial report of the teachers retirement 47.6 fund association for the immediately previous fiscal year under 47.7 section 356.20. 47.8 (c) Supplemental administrative expenses other than 47.9 investment expenses of a first class city teacher retirement 47.10 fund association are those expenses for the fiscal year that: 47.11 (1) exceed, for the St. Paul teachers retirement fund 47.12 association $443,745, or for the Minneapolis teacher retirement 47.13 fund association $671,513, plus, in each case, an additional 47.14 amount derived by applying the percentage increase in the 47.15 consumer price index for urban wage earners and clerical workers 47.16 all items index published by the Bureau of Labor Statistics of 47.17 the United States Department of Labor since July 1, 2001, to the 47.18 applicable dollar amount; and 47.19 (2) exceed the amount computed by applying the most recent 47.20 percentage of pay administrative expense amount, other than 47.21 investment expenses, for the teachers retirement association 47.22 governed by chapter 354 to the covered payroll of the respective 47.23 teachers retirement fund association for the fiscal year. 47.24 (d) The board of trustees of each first class city teachers 47.25 retirement fund association shall allocate the total dollar 47.26 amount of supplemental administrative expenses other than 47.27 investment expenses determined under paragraph (c), clause (2), 47.28 among the various active and retired membership groups of the 47.29 teachers retirement fund association and shall assess the 47.30 various membership groups their respective share of the 47.31 supplemental administrative expenses other than investment 47.32 expenses, in amounts determined by the board of trustees. The 47.33 supplemental administrative expense assessments must be paid by 47.34 the membership group in a manner determined by the board of 47.35 trustees of the respective teachers retirement association. 47.36 Supplemental administrative expenses payable by the active 48.1 members of the pension plan must be picked up by the employer in 48.2 accordance with section 356.62. 48.3 (e) With respect to the St. Paul teachers retirement fund 48.4 association, the supplemental administrative expense assessment 48.5 must be fully disclosed to the various active and retired 48.6 membership groups of the teachers retirement fund association. 48.7 The chief administrative officer of the St. Paul teachers 48.8 retirement fund association shall prepare a supplemental 48.9 administrative expense assessment disclosure notice, which must 48.10 include the following: 48.11 (1) the total amount of administrative expenses of the St. 48.12 Paul teachers retirement fund association, the amount of the 48.13 investment expenses of the St. Paul teachers retirement fund 48.14 association, and the net remaining amount of administrative 48.15 expenses of the St. Paul teachers retirement fund association; 48.16 (2) the amount of administrative expenses for the St. Paul 48.17 teachers retirement fund association that would be equivalent to 48.18 the teachers retirement association noninvestment administrative 48.19 expense level described in paragraph (c); 48.20 (3) the total amount of supplemental administrative 48.21 expenses required for assessment calculated under paragraph (c); 48.22 (4) the portion of the total amount of the supplemental 48.23 administrative expense assessment allocated to each membership 48.24 group and the rationale for that allocation; 48.25 (5) the manner of collecting the supplemental 48.26 administrative expense assessment from each membership group, 48.27 the number of assessment payments required during the year, and 48.28 the amount of each payment or the procedure used to determine 48.29 each payment; and 48.30 (6) any other information that the chief administrative 48.31 officer determines is necessary to fairly portray the manner in 48.32 which the supplemental administrative expense assessment was 48.33 determined and allocated. 48.34 (f) The disclosure notice must be provided annually in the 48.35 annual report of the association. 48.36 (g) The supplemental administrative expense assessments 49.1 must be deposited in the applicable teachers retirement fund 49.2 upon receipt. 49.3 (h) Any omitted active membership group assessments that 49.4 remain undeducted and unpaid to the teachers retirement fund 49.5 association for 90 days must be paid by the respective school 49.6 district. The school district may recover any omitted active 49.7 membership group assessment amounts that it has previously 49.8 paid. The teachers retirement fund association shall deduct any 49.9 omitted retired membership group assessment amounts from the 49.10 benefits next payable after the discovery of the omitted amounts. 49.11 Sec. 4. [STATE PAYMENT OF CERTAIN UNPAID CHARTER SCHOOL 49.12 RETIREMENT CONTRIBUTIONS.] 49.13 Subdivision 1. [UNPAID CONTRIBUTIONS.] (a) The state of 49.14 Minnesota shall make any unpaid employee, employer, and employer 49.15 additional contributions to the applicable retirement 49.16 association for teaching or other service in a designated 49.17 charter school which closed before April 1, 2002, without having 49.18 paid the required contributions to the retirement association. 49.19 (b) By June 1, 2002, the chief administrative officer of 49.20 the retirement association shall certify to the commissioner of 49.21 children, families, and learning the amount of accrued 49.22 contributions, plus applicable interest, which were not paid by 49.23 each designated charter school before its closure. On July 1, 49.24 2002, the commissioner of children, families, and learning shall 49.25 pay the amounts certified from the state total building lease 49.26 aid otherwise payable under Minnesota Statutes, section 124D.11, 49.27 subdivision 4a, to the affected retirement associations. The 49.28 forecasted amount of charter school lease aid must not be 49.29 adjusted to reflect the amount remitted under this section. 49.30 Rather, charter school lease aid must be prorated by the amount 49.31 remitted. The commissioner shall remit directly to the 49.32 retirement association the amounts certified under this 49.33 section. The applicable retirement association shall credit 49.34 employee contribution payments to the applicable member accounts 49.35 and shall credit to the applicable members allowable and formula 49.36 service and covered salary for the period when the teaching or 50.1 other service was actually performed in the charter school. 50.2 State payments representing unpaid employee contributions must 50.3 be considered accumulated employee or member deductions for 50.4 purposes of Minnesota Statutes, section 353.34; 354.49; or 50.5 354A.37. 50.6 Subd. 2. [COVERED RETIREMENT ASSOCIATIONS.] This section 50.7 applies to the following public retirement associations 50.8 providing retirement coverage for employees in charter schools: 50.9 (1) the teachers retirement association; 50.10 (2) the Minneapolis teachers retirement fund association; 50.11 (3) the St. Paul teachers retirement fund association; 50.12 (4) the Duluth teachers retirement fund association; and 50.13 (5) the public employees retirement association. 50.14 Subd. 3. [DESIGNATED CLOSED CHARTER SCHOOLS.] This section 50.15 applies to the Frederick Douglass charter school and any other 50.16 charter school that is determined by the commissioner of 50.17 children, families, and learning to have closed before April 1, 50.18 2002. 50.19 Sec. 5. [CONTINUING RECOVERY AUTHORITY.] 50.20 Nothing in section 4 relieves the sponsor of a closed 50.21 charter school and the operator of a closed charter school from 50.22 any financial responsibility that those parties may have to pay 50.23 unpaid employee, employer, or employer additional contributions 50.24 to the applicable public retirement plans. The commissioner of 50.25 revenue shall undertake all reasonable efforts to recover these 50.26 amounts. Any recovered amounts must be deposited in the general 50.27 fund and are appropriated to the department of children, 50.28 families, and learning to offset the payment of unpaid 50.29 contributions under section 4. 50.30 Sec. 6. [EFFECTIVE DATE.] 50.31 (a) Sections 1 and 2 are effective on July 1, 2002. 50.32 (b) Sections 4 and 5 are effective on the day following 50.33 final enactment. 50.34 ARTICLE 6 50.35 TEACHER RETIREMENT PLANS 50.36 SERVICE CREDIT PURCHASE 51.1 DEADLINE EXTENSION 51.2 Section 1. Laws 1999, chapter 222, article 16, section 16, 51.3 is amended to read: 51.4 Sec. 16. [REPEALER.] 51.5 Sections 1 to 13 are repealed on May 16,20022003. 51.6 Sec. 2. Laws 2000, chapter 461, article 12, section 20, is 51.7 amended to read: 51.8 Sec. 20. [EFFECTIVE DATE.] 51.9 (a) Sections 4, 5, and 11 to 20 are effective on the day 51.10 following final enactment. 51.11 (b) Sections 1, 2, 3, and 6 to 10 are effective on the day 51.12 following final enactment and apply retroactively to a faculty 51.13 member of the Lake Superior College who was granted an extended 51.14 leave of absence under article 19, section 4, of the united 51.15 technical college educators master agreement for the 1999-2000 51.16 academic year prior to March 20, 2000. 51.17 (c) Sections 5, 11, and 14, paragraph (c), expire on May 51.18 16,20022003. 51.19 Sec. 3. Laws 2001, First Special Session chapter 10, 51.20 article 6, section 21, is amended to read: 51.21 Sec. 4. [EXPIRATION DATE.] 51.22 (a) The amendments in sections 1, 2, 3, 4, 10, 12, 16, 17, 51.23 18, 19, and 20 expire May 16, 2003. 51.24 (b) Sections 9 and 15 expire May 16,20022003. 51.25 Sec. 4. [EFFECTIVE DATE.] 51.26 Sections 1 to 3 are effective on the day following final 51.27 enactment. 51.28 ARTICLE 7 51.29 RECODIFICATION OF SOCIAL 51.30 SECURITY COVERAGE PROVISIONS 51.31 Section 1. Minnesota Statutes 2000, section 355.01, 51.32 subdivision 1, is amended to read: 51.33 Subdivision 1. [IN GENERAL.] For the purposes of this 51.34 chapter,as amended,each of the terms defined in this section 51.35havehas themeaningsmeaning ascribed to them herein. 51.36 Sec. 2. Minnesota Statutes 2000, section 355.01, is 52.1 amended by adding a subdivision to read: 52.2 Subd. 2a. [CONSTITUTIONAL OFFICER.] "Constitutional 52.3 officer" means the governor, lieutenant governor, attorney 52.4 general, secretary of state, state auditor, and state treasurer 52.5 who is duly elected and who was sworn into office. 52.6 Sec. 3. Minnesota Statutes 2000, section 355.01, is 52.7 amended by adding a subdivision to read: 52.8 Subd. 2b. [DULUTH TEACHER.] "Duluth teacher" means a 52.9 person employed by independent school district No. 709, Duluth, 52.10 who holds a position covered by the Duluth teachers retirement 52.11 fund association established under chapter 354A. 52.12 Sec. 4. Minnesota Statutes 2000, section 355.01, is 52.13 amended by adding a subdivision to read: 52.14 Subd. 2c. [EDUCATIONAL EMPLOYEE.] "Educational employee" 52.15 means an employee of the state of Minnesota or of a public 52.16 subdivision of the state who performs services in a position 52.17 covered by the teachers retirement association under chapter 354. 52.18 Sec. 5. Minnesota Statutes 2000, section 355.01, is 52.19 amended by adding a subdivision to read: 52.20 Subd. 2d. [EMPLOYEE.] "Employee" means a person employed 52.21 by the state of Minnesota or by a political subdivision of the 52.22 state and includes an officer of the state of Minnesota or of a 52.23 political subdivision of the state. 52.24 Sec. 6. Minnesota Statutes 2000, section 355.01, is 52.25 amended by adding a subdivision to read: 52.26 Subd. 2e. [EMPLOYEE TAX.] "Employee tax" means the tax 52.27 imposed by section 3101 of the Internal Revenue Code of 1986. 52.28 Sec. 7. Minnesota Statutes 2000, section 355.01, 52.29 subdivision 3, is amended to read: 52.30 Subd. 3. [EMPLOYMENT.]The term(a) "Employment" means any 52.31 service performed by an employee in the employ of the state, or 52.32 any political subdivision thereof, forsuchthat employer, 52.33 except: 52.34 (1) service which in the absence of an agreement entered 52.35 into under this chapter, as amended, would constitute 52.36 "employment" as defined in the Social Security act; or 53.1 (2) service which under the Social Security Actmayis not 53.2 permitted to be included in an agreement between the state and 53.3 the federal Secretary of Health, Education,andWelfareHuman 53.4 Services entered into under this chapter, as amended. 53.5 (b) Service which under the Social Security Actmayis 53.6 permitted to be included in an agreement only upon certification 53.7 by the governor in accordance with section 218(d) (3) of that 53.8 actshallmust be included in the term "employment" if and when 53.9 the governor issues, with respect tosuchthat service,athe 53.10 appropriate federal certificate to the federal Secretary of 53.11 Health, Education,andWelfareHuman Services. 53.12 Sec. 8. Minnesota Statutes 2000, section 355.01, is 53.13 amended by adding a subdivision to read: 53.14 Subd. 3a. [FEDERAL INSURANCE CONTRIBUTIONS ACT.] "Federal 53.15 Insurance Contributions Act" means subchapters A and B of 53.16 chapter 21 of the Internal Revenue Code of 1986, as amended 53.17 through December 31, 2000. 53.18 Sec. 9. Minnesota Statutes 2000, section 355.01, is 53.19 amended by adding a subdivision to read: 53.20 Subd. 3b. [GOVERNMENTAL EMPLOYER.] "Governmental employer" 53.21 means any political subdivision as defined in section 218 of the 53.22 Social Security Act. The term includes a city, county, town, 53.23 hospital district, or other body, politic and corporate, located 53.24 in Minnesota. 53.25 Sec. 10. Minnesota Statutes 2000, section 355.01, is 53.26 amended by adding a subdivision to read: 53.27 Subd. 3c. [HIGHER EDUCATION EMPLOYEE.] "Higher education 53.28 employee" means an employee of the state of Minnesota who 53.29 performs services in a Minnesota state colleges and universities 53.30 system in a position covered by the individual retirement 53.31 account plan under section 354B.21 and who remains a member of 53.32 the teachers retirement association for purposes of social 53.33 security coverage only. 53.34 Sec. 11. Minnesota Statutes 2000, section 355.01, is 53.35 amended by adding a subdivision to read: 53.36 Subd. 3d. [HOSPITAL EMPLOYEE.] "Hospital employee" means 54.1 an officer or employee of a public hospital who performs 54.2 services in a position covered by the public employees 54.3 retirement association under chapter 353. 54.4 Sec. 12. Minnesota Statutes 2000, section 355.01, is 54.5 amended by adding a subdivision to read: 54.6 Subd. 3e. [JUDGE.] "Judge" means a judge as defined in 54.7 section 490.121, subdivision 3. 54.8 Sec. 13. Minnesota Statutes 2000, section 355.01, is 54.9 amended by adding a subdivision to read: 54.10 Subd. 3f. [LEGISLATOR.] "Legislator" means a member of the 54.11 legislature who is duly elected and who was sworn into office. 54.12 Sec. 14. Minnesota Statutes 2000, section 355.01, is 54.13 amended by adding a subdivision to read: 54.14 Subd. 3g. [LOCAL GOVERNMENTAL SUBDIVISION.] "Local 54.15 governmental subdivision" means: 54.16 (1) a political subdivision as defined in section 218(b) of 54.17 the Social Security Act; 54.18 (2) an instrumentality of the state; 54.19 (3) an instrumentality of one or more of the political 54.20 subdivisions of the state, including the league of Minnesota 54.21 cities; 54.22 (4) an instrumentality of the state and one or more of its 54.23 political subdivisions; 54.24 (5) a governmental subdivision as defined in section 54.25 353.01, subdivision 6; and 54.26 (6) any instrumentality established under a joint powers 54.27 agreement under section 471.59 wherein the instrumentality is 54.28 responsible for the employment and the payment of the salaries 54.29 of the employees of the instrumentality. 54.30 Sec. 15. Minnesota Statutes 2000, section 355.01, is 54.31 amended by adding a subdivision to read: 54.32 Subd. 3h. [MINNEAPOLIS TEACHER.] "Minneapolis teacher" 54.33 means a person employed by special school district No. 1, 54.34 Minneapolis, who holds a position covered by the Minneapolis 54.35 teachers retirement fund association established under chapter 54.36 354A. 55.1 Sec. 16. Minnesota Statutes 2000, section 355.01, is 55.2 amended by adding a subdivision to read: 55.3 Subd. 3i. [POLITICAL SUBDIVISION.] "Political subdivision" 55.4 means any political subdivision as defined in section 218(b) of 55.5 the Social Security Act, and includes any instrumentality of the 55.6 state, any instrumentality of one or more of its political 55.7 subdivisions, including the league of Minnesota municipalities, 55.8 any instrumentality of the state and one or more of its 55.9 political subdivisions, and an instrumentality established under 55.10 a joint powers agreement under section 471.59, wherein the 55.11 instrumentality is responsible for the employment and payment of 55.12 the salaries of employees of the instrumentality. 55.13 Sec. 17. Minnesota Statutes 2000, section 355.01, is 55.14 amended by adding a subdivision to read: 55.15 Subd. 3j. [PUBLIC EMPLOYEE.] "Public employee" means an 55.16 officer or an employee of a local governmental subdivision of 55.17 the state who performs services in a position covered by the 55.18 public employees retirement association established under 55.19 chapter 353. 55.20 Sec. 18. Minnesota Statutes 2000, section 355.01, is 55.21 amended by adding a subdivision to read: 55.22 Subd. 3k. [PUBLIC HOSPITAL.] "Public hospital" means a 55.23 hospital that is owned or operated by a governmental employer or 55.24 a combination of governmental employers, or a hospital that is 55.25 an integral part of a governmental employer or of a combination 55.26 of governmental employers. 55.27 Sec. 19. Minnesota Statutes 2000, section 355.01, is 55.28 amended by adding a subdivision to read: 55.29 Subd. 3l. [ST. PAUL TEACHER.] "St. Paul teacher" means a 55.30 person employed by independent school district No. 625, St. 55.31 Paul, who holds a position covered by the St. Paul teachers 55.32 retirement fund association established under chapter 354A. 55.33 Sec. 20. Minnesota Statutes 2000, section 355.01, 55.34 subdivision 6, is amended to read: 55.35 Subd. 6. [SECRETARY OF HEALTH AND HUMAN SERVICES.]The55.36term"Secretary of Health, Education,andWelfareHuman Services" 56.1 means the secretary of the federal Department of Health and 56.2 Human Services and includes any individual to whom the Secretary 56.3 of Health, Education,andWelfareHuman Services has delegated 56.4anyfunctions under the Social Security Act with respect to 56.5 coverageunder such actof employees of states and their 56.6 political subdivisions. 56.7 Sec. 21. Minnesota Statutes 2000, section 355.01, 56.8 subdivision 8, is amended to read: 56.9 Subd. 8. [SOCIAL SECURITY ACT.]The term"Social Security 56.10 Act" means the Act of Congress approved August 14, 1935, chapter 56.11 531, Statutes at Large, volume 49, page 620, officially cited as 56.12 the "Social Security Act," assuch act has been and may from56.13time to time beamended (including the relevant regulations and 56.14 requirementsissued pursuant thereto). 56.15 Sec. 22. Minnesota Statutes 2000, section 355.01, is 56.16 amended by adding a subdivision to read: 56.17 Subd. 11. [SPECIAL AUTHORITY OR DISTRICT.] "Special 56.18 authority or district" means a municipal housing and 56.19 redevelopment authority organized under sections 469.001 to 56.20 469.047, a soil and water conservation district organized under 56.21 chapter 103C, a port authority organized under sections 469.048 56.22 to 469.068, an economic development authority organized under 56.23 sections 469.090 to 469.108, or a hospital district organized or 56.24 reorganized under sections 447.31 to 447.37. 56.25 Sec. 23. Minnesota Statutes 2000, section 355.01, is 56.26 amended by adding a subdivision to read: 56.27 Subd. 12. [SPECIAL AUTHORITY OR DISTRICT 56.28 EMPLOYEE.] "Special authority or district employee" means an 56.29 employee, other than an elected official, of a municipal housing 56.30 and redevelopment authority organized under sections 469.001 to 56.31 469.047, of a soil and water conservation district organized 56.32 under chapter 103C, of a port authority organized under sections 56.33 469.048 to 469.068, of an economic development authority 56.34 organized under sections 469.090 to 469.108, or of a hospital 56.35 district organized or reorganized under sections 447.31 to 56.36 447.37. 57.1 Sec. 24. Minnesota Statutes 2000, section 355.01, is 57.2 amended by adding a subdivision to read: 57.3 Subd. 13. [STATE AGENCY.] "State agency" means the 57.4 commissioner of employee relations. 57.5 Sec. 25. Minnesota Statutes 2000, section 355.01, is 57.6 amended by adding a subdivision to read: 57.7 Subd. 14. [STATE EMPLOYEE.] "State employee" means an 57.8 employee of the state of Minnesota or of a political subdivision 57.9 who performs services in a position covered by the general state 57.10 employees retirement system of the Minnesota state retirement 57.11 system governed by chapter 352, except any position for which 57.12 the compensation is on a fee basis. 57.13 Sec. 26. Minnesota Statutes 2000, section 355.01, is 57.14 amended by adding a subdivision to read: 57.15 Subd. 15. [WAGES.] "Wages" means all remuneration for 57.16 employment, including the cash value of all remuneration paid in 57.17 any medium other than cash. The term does not include that part 57.18 of the remuneration which, even if it were for employment within 57.19 the meaning of the Federal Insurance Contributions Act, would 57.20 not constitute wages within the meaning of that act. 57.21 Sec. 27. Minnesota Statutes 2000, section 355.02, is 57.22 amended to read: 57.23 355.02 [AGREEMENTS.] 57.24 Subdivision 1. [GENERAL AUTHORITY.] (a) The state agency, 57.25 with the approval of the governor, is hereby authorized to enter 57.26 into an agreement on behalf of the state with the federal 57.27 Secretary of Health, Education,andWelfareHuman Services, 57.28 consistent with the terms and provisions of this chapter, as57.29amended, for the purpose of extending the benefits of the 57.30 federal old ageand, survivors, and disability insurance system 57.31 to employees of the state or any political subdivision thereof 57.32 with respect to services specified insuchthe agreement which 57.33 constitute "employment," whenever so specifically authorized by 57.34 the statutory provisions of this state pertaining to any 57.35 coverage group of such employees to which the agreement may 57.36 become applicable under the Social Security Act. 58.1Pursuant to such(b) Under this specific authorization the 58.2 agreement may containsuchthose provisions relating to 58.3 coverage, benefits, contributions, effective date, modification 58.4 and termination of the agreement, administration, and other 58.5 appropriate provisions as the state agency and the federal 58.6 Secretary of Health, Education,andWelfareHuman Services shall 58.7 agree upon, but, except as may be otherwise required by or under 58.8 the Social Security Act as to the services to be covered, such 58.9 agreementshallmust provide in effect that: 58.10 (1) benefits will be provided for employees whose services 58.11 are covered by the agreement (and their dependents and 58.12 survivors) on the same basis as thoughsuchthose services 58.13 constituted employment within the meaning of title II of the 58.14 Social Security Act; 58.15 (2) the state or other employer will pay to the federal 58.16 Secretary of the Treasury, at such time or times as may be 58.17 prescribed under the Social Security Act, contributions with 58.18 respect to wages, equal to the sum of the taxes which would be 58.19 imposed by the Federal Insurance Contributions Act if the 58.20 services covered by the agreement constituted employment within 58.21 the meaning of that act; 58.22 (3)Suchthe agreementshall beis effective with respect 58.23 to services in employment covered by the agreement performed 58.24 after a date specified thereinbut in no event may it be58.25effective with respect to any such services performed prior to58.26the first day of the calendar year in which such agreement is58.27entered into or in which the modification of the agreement58.28making it applicable to such services, is entered into except58.29that an agreement or modification entered into prior to January58.301, 1960, may be effective with respect to services performed58.31after December 31, 1955, or after a later date specified in such58.32agreement or modification; and 58.33 (4) all services which constitute employment and are 58.34 performed in the employ of the state or any of its political 58.35 subdivisions by employees thereof, may be covered bysuchthe 58.36 agreement whenever so specifically authorized by the statutory 59.1 provisions of this state pertaining to any coverage group of 59.2 such employees to which the agreement may become applicable 59.3 under the Social Security Act. 59.4 Subd. 2. [INTERSTATE INSTRUMENTALITY.] (a) Any 59.5 instrumentality jointly created by this state and any other 59.6 state or states isherebyauthorized, upon the granting of like 59.7 authority bysuchthe other state or states, to: 59.8 (1)toenter into an agreement with the federal Secretary 59.9 of Health, Education,andWelfareHuman Services whereby the 59.10 benefits of the federal old ageand, survivors, and disability 59.11 insurance systemshall beare extended to employees ofsuchthe 59.12 instrumentality,; 59.13 (2)torequire its employees to pay (and for that purpose 59.14 to deduct from their wages) contributions equal to the amounts 59.15 which they would be required to pay under section 355.03, 59.16 subdivision 1, if they were covered by an agreement made 59.17pursuant tounder subdivision 1,; and 59.18 (3)tomake payments to the federal Secretary of the 59.19 Treasury in accordance withsuchthat agreement, including 59.20 payments from its own funds, and otherwise to comply withsuch59.21 those agreements.Such59.22 (b) The agreementsshallmust, to the extent practicable, 59.23 be consistent with the terms and provisions of subdivision 1 and 59.24 other provisions of this chapter, as amended. 59.25 Subd. 3. [GROUPS COVERED BY SOCIAL SECURITY.] The 59.26 following groups must be covered by an agreement or a 59.27 modification to an agreement between the state agency and the 59.28 federal Secretary of Health and Human Services: 59.29 (1) constitutional officers; 59.30 (2) Duluth teachers; 59.31 (3) educational employees; 59.32 (4) higher education employees; 59.33 (5) hospital employees; 59.34 (6) judges; 59.35 (7) legislators; 59.36 (8) Minneapolis teachers; 60.1 (9) public employees; 60.2 (10) St. Paul teachers; 60.3 (11) special authority or district employees; and 60.4 (12) state employees. 60.5 Sec. 28. Minnesota Statutes 2000, section 355.03, is 60.6 amended to read: 60.7 355.03 [EMPLOYEES AND EMPLOYERS, CONTRIBUTIONS.] 60.8 Subdivision 1. [EMPLOYEE CONTRIBUTION AMOUNT.] Every 60.9 employee of the state, or of any of its political subdivisions, 60.10 whose services are covered by the agreement entered into under 60.11 section 355.02shall be required tomust pay for the period 60.12 ofsuchthe coverage,into the contribution fund established by60.13section 355.04,contributions,with respect to wages, equal to 60.14 the amount of the employee's tax which would be imposed by the 60.15 Federal Insurance Contributions Act ifsuchthose services 60.16 constituted employment within the meaning of that act. 60.17SuchThis liabilityshall arisearises in consideration of the 60.18 employee's retention in the service of the state, or any of its 60.19 political subdivisions, or the employee's entry uponsuchthat 60.20 service, after the enactment of this chapter, as amended. 60.21 Subd. 2. [EMPLOYEE DEDUCTION.] The contribution imposed by 60.22 this sectionshallmust be collected by the covered employee's 60.23 employer by deducting the amount of the contribution from wages 60.24 as and when paid, but. The failure to make such deduction shall 60.25 not relieve the employee from liability for such contribution. 60.26 Subd. 2a. [EMPLOYER CONTRIBUTION.] (a) Employer 60.27 contributions that are required under the agreement must be paid 60.28 by the applicable employing unit. 60.29 (b) Employer contributions on behalf of St. Paul teachers, 60.30 Duluth teachers, Minneapolis teachers, or education employees 60.31 may be paid from normal school operating funds. Employer 60.32 contributions on behalf of state employees must be paid by the 60.33 applicable department or agency from its appropriation or other 60.34 revenue, in the same proportion as salaries are paid, and must 60.35 be charged as an administrative cost of the state governmental 60.36 unit. 61.1 (c) Employing units may pay the employer contribution from 61.2 taxes collected or from other governmental revenue. An 61.3 employing unit may include in its tax levy the amount necessary 61.4 to pay its social security obligations. If the taxes authorized 61.5 to be levied cause the total levy amount to exceed any 61.6 limitation on the power of the employing unit to levy taxes, the 61.7 unit may still levy the necessary amount. The employing unit, 61.8 in the event of a deficit, may issue debt obligations, payable 61.9 in not more than two years, in an amount which may cause its 61.10 indebtedness to exceed any limitation without holding an 61.11 election and may levy taxes to amortize the indebtedness. The 61.12 authorized social security expenditures must not be included in 61.13 computing the cost of government for purposes of any home rule 61.14 charter or other charter. 61.15 (d) If the required employer contribution for social 61.16 security is increased and, as a result of that increase, there 61.17 is insufficient money available to a state governmental unit, 61.18 there is appropriated to the state department or agency from the 61.19 general fund the amount required to meet the deficiency, based 61.20 on certifications from the commissioner of employee relations to 61.21 the commissioner of finance. The transfer of the appropriated 61.22 amount may only occur after the commissioner of finance notifies 61.23 the chair and ranking minority member of the house committee on 61.24 ways and means and the chair and ranking minority member of the 61.25 senate state government finance committee of the amount to be 61.26 transferred. 61.27 (e) For members of the general state employees retirement 61.28 plan of the Minnesota state retirement system who are employed 61.29 by the state horticultural society, the department of Minnesota 61.30 for the disabled American veterans organization, the department 61.31 of Minnesota of the veterans of foreign wars organization, the 61.32 Minnesota crop improvement association, the Minnesota historical 61.33 society, the armory building commission, and the 61.34 Minnesota-Wisconsin-Minneapolis-St. Paul survival plan project, 61.35 the applicable employing unit must pay the employer contribution 61.36 from any revenue source that it has. 62.1 Subd. 3. [ADJUSTMENTS; REFUNDS.] If more or less than the 62.2 correct amount of the contribution imposed by this section is 62.3 paid or deducted with respect to any remuneration, proper 62.4 adjustments, or refund if adjustment is impracticable,shall62.5 must be made, without interest, in such manner and at such times 62.6 as the state agencyshall prescribeprescribes. 62.7 Subd. 4. [DELINQUENT PAYMENTS.] Delinquent payments that 62.8 are due under this chapter, with compound interest at the rate 62.9 of six percent per annum, may be recovered by legal action in a 62.10 court of competent jurisdiction against an employing unit that 62.11 is liable for the amount. The state agency may request that the 62.12 delinquent payment and interest amount be deducted from any 62.13 other money that is payable to the applicable employing unit by 62.14 any department or agency of the state. An action for the 62.15 recovery of delinquent payments is not subject to any statutory 62.16 provision that would otherwise limit the time within which an 62.17 action may be commenced. 62.18 Sec. 29. [355.035] [REIMBURSEMENT BY EMPLOYING UNITS.] 62.19 An employing unit which employs a member of a covered group 62.20 must reimburse the state agency for its pro rata share of the 62.21 cost of the administration of the agency with respect to social 62.22 security coverage in accordance with the rules of the state 62.23 agency pertaining to this reimbursement. 62.24 Sec. 30. [355.036] [REPORTS.] 62.25 An employing unit which employs a member of a covered group 62.26 must make any reports in the form required and must include the 62.27 information that the state agency requires. An employing unit 62.28 also must comply with the reporting requirements that the state 62.29 agency or the federal Secretary of Health and Human Services may 62.30 from time to time determine are necessary to ensure the 62.31 correctness and verification of relevant information. 62.32 Sec. 31. [355.037] [PROCEEDS OF SPECIAL BENEFIT TAXES.] 62.33 The proceeds of the special benefit taxes that are 62.34 authorized to be levied for redevelopment purposes under section 62.35 469.033, subdivision 6, may be used to defray all or part of the 62.36 costs incurred by any housing and redevelopment authority under 63.1 this chapter. 63.2 Sec. 32. Minnesota Statutes 2000, section 355.05, is 63.3 amended to read: 63.4 355.05 [RULES.] 63.5 The state agencyshall make and publish suchmay promulgate 63.6 those rules, not inconsistent with the provisions of this 63.7 chapter, as amended, as it finds necessary or appropriate to the 63.8 efficient administration of the functions with which it is 63.9 charged under this chapter, as amended. 63.10 Sec. 33. Minnesota Statutes 2000, section 355.07, is 63.11 amended to read: 63.12 355.07 [DECLARATION OF POLICY.] 63.13 (a) In order to extend to employees of the stateand, its 63.14 political subdivisions, and its other governmental employers, 63.15 and to the dependents and survivors ofsuchthe employees of 63.16 those employing units, the basic protection accorded to others 63.17 by the old ageand, survivors, and disability insurance system 63.18 embodied in the Social Security Act, it is hereby declared to be 63.19 the policy of the legislature, subject to the limitations of 63.20 this chapter, that these steps are taken to provide protection 63.21 to employees of the state and its political subdivisions on as 63.22 broad a basis as may be authorized by the legislature and is 63.23 permitted under the Social Security Act. 63.24 (b) It is also the policy of the legislature that the 63.25 protection afforded employees in positions covered by a 63.26 retirement system on the date an agreement under this chapter is 63.27 made applicable to service performed in those positions, or 63.28 receiving periodic benefits under the retirement system at that 63.29 time, will not be impaired as a result of making the agreement 63.30 so applicable or as a result of legislative enactment in 63.31 anticipation thereof when combined with the benefits accorded 63.32 the employee by the Social Security Act. 63.33 (c) To this end, the agreement referred to in section 63.34 355.02shallmust not be made applicable to any service 63.35 performed in any position covered by a retirement system unless 63.36 a referendum is first held by secret ballot in which a majority 64.1 of "eligible employees," as defined in section 218(d) (3) of the 64.2 Social Security Act, vote in favor thereof, or unless a 64.3 retirement system is divided in two divisions or parts, one of 64.4 which is composed of positions of members of the system who 64.5 desire coverage and one of which is composed of positions of 64.6 members of the system who do not desire coverage under section 64.7 218(d) (3) of the Social Security Act, in accordance with 64.8 subsections (6) and (7) thereof. 64.9 (d) Nothing in any provision of this chaptershall64.10authorizeauthorizes the extension of the insurance system 64.11 established by this chapter, as amended, to service in any 64.12 police officer's or firefighter's position or in any position 64.13 covered by a retirement system applicable exclusively to 64.14 positions in one or more law enforcement or fire fighting units, 64.15 agencies or departments. 64.16 Sec. 34. Minnesota Statutes 2000, section 355.08, is 64.17 amended to read: 64.18 355.08 [APPLICATION OF SOCIAL SECURITY ACT.] 64.19 The provisions of the Social Security Act, and all acts64.20amendatory thereof, shallgovern relative to employees of the 64.21 stateand, its political subdivisions, and its other 64.22 governmental employers subject toMinnesota Statutes,this 64.23 chapter355, as amended, anything insaidthis chapter to the 64.24 contrary notwithstanding. 64.25 Sec. 35. [355.091] [DIVISION OF RETIREMENT PLANS.] 64.26 (a) The public retirement plans enumerated in paragraph (b) 64.27 must be divided into two parts in accordance with section 64.28 218(d)(6)(c) of the Social Security Act, with one part composed 64.29 of plan members who did not elect social security coverage in 64.30 the applicable referendum and the other part composed of plan 64.31 members who did elect social security coverage in the applicable 64.32 referendum. 64.33 (b) The applicable public retirement plans are: 64.34 (1) the elective state officers retirement plan; 64.35 (2) the judges retirement plan; 64.36 (3) the legislators retirement plan; 65.1 (4) the Minneapolis teachers retirement fund association; 65.2 (5) the general employees retirement plan of the public 65.3 employees retirement association; 65.4 (6) the St. Paul teachers retirement fund association; and 65.5 (7) the teachers retirement association. 65.6 (c) Plan participants and persons electing participation 65.7 under section 354B.21 remain members of the teachers retirement 65.8 association for purposes of social security coverage only, and 65.9 remain covered by the applicable agreement entered into under 65.10 section 355.01, but are not members of the teachers retirement 65.11 association for any other purpose while employed in covered 65.12 employment. 65.13 Sec. 36. [REPEALER.] 65.14 Minnesota Statutes 2000, sections 355.01, subdivisions 2, 65.15 4, 5, 9, and 10; 355.11; 355.12; 355.13; 355.14; 355.15; 355.16; 65.16 355.17; 355.201; 355.202; 355.203; 355.204; 355.205; 355.206; 65.17 355.207; 355.208; 355.209; 355.21; 355.22; 355.23; 355.24; 65.18 355.25; 355.26; 355.27; 355.28; 355.281; 355.282; 355.283; 65.19 355.284; 355.285; 355.286; 355.287; 355.288; 355.29; 355.291; 65.20 355.292; 355.293; 355.294; 355.295; 355.296; 355.297; 355.298; 65.21 355.299; 355.30; 355.311; 355.391; 355.392; 355.393; 355.41; 65.22 355.42; 355.43; 355.44; 355.45; 355.46; 355.48; 355.49; 355.50; 65.23 355.51; 355.52; 355.54; 355.55; 355.56; 355.57; 355.58; 355.59; 65.24 355.60; 355.61; 355.621; 355.622; 355.623; 355.624; 355.625; 65.25 355.626; 355.627; 355.628; 355.71; 355.72; 355.73; 355.74; 65.26 355.75; 355.76; 355.77; 355.78; 355.79; 355.80; 355.81; and 65.27 355.90, are repealed. 65.28 Sec. 37. [EFFECTIVE DATE.] 65.29 Sections 1 to 36 are effective on July 1, 2002. 65.30 ARTICLE 8 65.31 PUBLIC PENSION PLAN 65.32 ACTUARIAL ASSUMPTION REVISIONS 65.33 Section 1. Minnesota Statutes 2000, section 356.215, 65.34 subdivision 4d, is amended to read: 65.35 Subd. 4d. [INTEREST AND SALARY ASSUMPTIONS.] (a) The 65.36 actuarial valuation must use the applicable following 66.1 preretirement interest assumption and the applicable following 66.2 postretirement interest assumption: 66.3 preretirement postretirement 66.4 interest rate interest rate 66.5 plan assumption assumption 66.6 general state employees 66.7 retirement plan 8.5% 6.0% 66.8 correctional state employees 66.9 retirement plan 8.5 6.0 66.10 state patrol retirement plan 8.5 6.0 66.11 legislators retirement plan 8.5 6.0 66.12 elective state officers 66.13 retirement plan 8.5 6.0 66.14 judges retirement plan 8.5 6.0 66.15 general public employees 66.16 retirement plan 8.5 6.0 66.17 public employees police and fire 66.18 retirement plan 8.5 6.0 66.19 local government correctional 66.20 service retirement plan 8.5 6.0 66.21 teachers retirement plan 8.5 6.0 66.22 Minneapolis employees 66.23 retirement plan 6.0 5.0 66.24 Duluth teachers retirement plan 8.5 8.5 66.25 Minneapolis teachers retirement 66.26 plan 8.5 8.5 66.27 St. Paul teachers retirement 66.28 plan 8.5 8.5 66.29 Minneapolis police relief 66.30 association 6.0 6.0 66.31other localFairmont police relief 66.32associationsassociation 5.0 5.0 66.33 Minneapolis fire department 66.34 relief association 6.0 6.0 66.35other local salaried firefighters66.36 Virginia fire department 66.37 reliefassociationsassociation 5.0 5.0 66.38 local monthly benefit volunteer 66.39 firefighters relief associations 5.0 5.0 66.40 (b) The actuarial valuation must use the applicable 66.41 following single rate future salary increase assumption or the 66.42 applicable following graded rate future salary increase 66.43 assumption: 66.44 (1) single rate future salary increase assumption 66.45 future salary 66.46 plan increase assumption 66.47 legislators retirement plan 5.0% 66.48 elective state officers retirement 66.49 plan 5.0 66.50 judges retirement plan 5.0 66.51 Minneapolis police relief association 4.0 66.52other localFairmont police relief 66.53associationsassociation 3.5 66.54 Minneapolis fire department relief 66.55 association 4.0 66.56other local salaried firefighters66.57 Virginia fire department 66.58 reliefassociationsassociation 3.5 66.59 (2) modified single rate future salary increase assumption 66.60 future salary 66.61 plan increase assumption 67.1 Minneapolis employees the prior calendar year 67.2 retirement plan amount increased first by 67.3 1.0198 percent to prior 67.4 fiscal year date and 67.5 then increased by 4.0 67.6 percent annually for 67.7 each future year 67.8 (3) select and ultimate future salary increase assumption 67.9 or graded rate future salary increase assumption 67.10 future salary 67.11 plan increase assumption 67.12 general state employees select calculation and 67.13 retirement plan assumption A 67.14 correctional state employees 67.15 retirement plan assumption H 67.16 state patrol retirement plan assumption H 67.17 general public employees select calculation and 67.18 retirement plan assumption B 67.19 public employees police and fire 67.20 fund retirement plan assumption C 67.21 local government correctional service 67.22 retirement plan assumption H 67.23 teachers retirement plan assumption D 67.24 Duluth teachers retirement plan assumption E 67.25 Minneapolis teachers retirement plan assumption F 67.26 St. Paul teachers retirement plan assumption G 67.27 67.28 The select calculation:is, 67.29 during the ten-year select period,0.2a designated percent 67.30 is multiplied by the result of ten minus T, where T is 67.31 the number of completed years of service, and is added 67.32 to the applicable future salary increase assumption. The 67.33 designated percent is 0.2 percent for the correctional state 67.34 employees retirement plan, the state patrol retirement 67.35 plan, the public employees police and fire plan, and the 67.36 local government correctional service plan; 0.3 percent 67.37 for the general state employees retirement plan, the 67.38 general public employees retirement plan, the teachers 67.39 retirement plan, the Duluth teachers retirement fund 67.40 association, and the Saint Paul teachers retirement fund 67.41 association; and 0.4 percent for the Minneapolis teachers 67.42 retirement fund association. 67.43 67.44 The ultimate future salary increase assumption is: 67.45 67.46 age A B C D E F G H 67.47 16 6.95% 6.95% 11.50% 8.20% 8.00%7.50%7.25% 7.7500 67.48 6.50 6.90 67.49 17 6.90 6.90 11.50 8.15 8.007.507.257.7500 67.50 6.50 6.90 67.51 18 6.85 6.85 11.50 8.10 8.007.507.257.7500 67.52 6.50 6.90 67.53 19 6.80 6.80 11.50 8.05 8.007.507.257.7500 67.54 6.50 6.90 67.55 20 6.756.7511.508.008.007.507.257.7500 67.56 6.40 6.00 6.90 6.50 6.90 67.57 216.706.7011.507.958.007.507.257.1454 67.58 6.75 6.40 6.00 6.90 6.50 6.90 67.59 226.656.6511.007.908.007.507.257.0725 67.60 6.75 6.40 6.00 6.90 6.50 6.90 67.61 23 6.75 6.40 10.50 6.00 6.85 6.50 6.85 7.0544 67.62 246.666.5510.007.807.807.307.207.0363 67.63 6.75 6.40 6.00 6.80 6.50 6.80 67.64 256.506.509.507.757.707.207.157.0000 67.65 6.75 6.40 6.00 6.75 6.50 6.75 67.66 266.456.459.207.707.607.107.107.0000 67.67 6.75 6.36 6.00 6.70 6.50 6.70 67.68 276.406.408.907.657.507.007.057.0000 68.1 6.75 6.32 6.00 6.65 6.50 6.65 68.2 286.356.358.607.607.406.907.007.0000 68.3 6.75 6.28 6.00 6.60 6.50 6.60 68.4 296.306.308.307.557.306.806.957.0000 68.5 6.75 6.24 6.00 6.55 6.50 6.55 68.6 306.256.308.007.507.206.706.907.0000 68.7 6.75 6.20 6.00 6.50 6.50 6.50 68.8 316.206.257.807.457.106.606.857.0000 68.9 6.75 6.16 6.00 6.45 6.50 6.45 68.10 326.156.217.607.407.006.506.807.0000 68.11 6.75 6.12 6.00 6.40 6.50 6.40 68.12 336.106.177.407.306.906.406.757.0000 68.13 6.75 6.08 6.00 6.35 6.50 6.35 68.14 346.056.097.207.106.806.306.707.0000 68.15 6.75 6.04 6.00 6.30 6.50 6.30 68.16 356.006.057.007.006.706.206.657.0000 68.17 6.75 6.00 6.00 6.25 6.50 6.25 68.18 366.956.016.806.856.606.106.606.9019 68.19 6.75 5.96 6.00 6.20 6.50 6.20 68.20 375.905.976.606.706.506.006.556.8074 68.21 6.75 5.92 6.00 6.15 6.50 6.15 68.22 385.855.936.406.556.405.906.506.7125 68.23 6.75 5.88 5.90 6.10 6.50 6.10 68.24 395.805.896.206.406.305.806.406.6054 68.25 6.75 5.84 5.80 6.05 6.50 6.05 68.26 405.755.856.006.256.205.706.306.5000 68.27 6.75 5.80 5.70 6.00 6.50 6.00 68.28 415.705.815.906.106.105.606.206.3540 68.29 6.75 5.76 5.60 5.90 6.50 5.95 68.30 425.655.775.805.956.005.506.106.2087 68.31 6.75 5.72 5.50 5.80 6.50 5.90 68.32 435.605.735.705.805.905.456.006.0622 68.33 6.65 5.68 5.40 5.70 6.50 5.85 68.34 445.555.695.605.655.805.405.905.9048 68.35 6.55 5.64 5.30 5.60 6.50 5.80 68.36 455.505.655.505.505.705.355.805.7500 68.37 6.45 5.60 5.20 5.50 6.50 5.75 68.38 465.455.625.455.455.605.305.705.6940 68.39 6.35 5.56 5.10 5.40 6.40 5.70 68.40 475.405.595.405.405.505.255.65 5.6375 68.41 6.25 5.52 5.00 5.30 6.30 68.42 485.355.565.355.355.455.205.60 5.5822 68.43 6.15 5.48 5.00 5.20 6.20 68.44 495.305.535.305.305.405.155.55 5.5404 68.45 6.05 5.44 5.00 5.10 6.10 68.46 505.255.505.255.255.355.105.50 5.5000 68.47 5.95 5.40 5.00 5.00 6.00 68.48 515.205.455.255.205.305.055.45 5.4384 68.49 5.85 5.36 5.00 5.00 5.90 68.50 525.155.405.255.155.255.005.40 5.3776 68.51 5.75 5.32 5.00 5.00 5.80 68.52 535.105.355.255.105.255.005.35 5.3167 68.53 5.65 5.28 5.00 5.00 5.70 68.54 545.055.305.255.055.255.005.30 5.2826 68.55 5.55 5.24 5.00 5.00 5.60 68.56 555.005.255.25 5.005.255.005.25 5.2500 68.57 5.45 5.20 5.00 5.50 68.58 565.005.205.25 5.005.255.005.255.2500 68.59 5.35 5.16 5.00 5.40 5.20 68.60 575.005.155.25 5.005.255.005.255.2500 68.61 5.25 5.12 5.00 5.30 5.15 68.62 585.005.105.255.005.255.005.255.2500 68.63 5.25 5.08 5.10 5.00 5.20 5.10 68.64 595.005.055.255.005.255.005.255.2500 68.65 5.25 5.04 5.20 5.00 5.10 5.05 68.66 605.005.00 5.255.005.255.005.255.2500 68.67 5.25 5.30 5.00 5.00 68.68 615.005.00 5.255.005.255.005.255.2500 68.69 5.25 5.40 5.00 5.00 68.70 625.005.00 5.255.005.255.005.255.2500 68.71 5.25 5.50 5.00 5.00 69.1 635.005.00 5.255.005.255.005.255.2500 69.2 5.25 5.60 5.00 5.00 69.3 645.005.00 5.255.005.255.005.255.2500 69.4 5.25 5.70 5.00 5.00 69.5 655.005.00 5.255.005.255.005.255.2500 69.6 5.25 5.70 5.00 5.00 69.7 665.005.00 5.255.005.255.005.255.2500 69.8 5.25 5.70 5.00 5.00 69.9 675.005.00 5.255.005.255.005.255.2500 69.10 5.25 5.70 5.00 5.00 69.11 685.005.00 5.255.005.255.005.255.2500 69.12 5.25 5.70 5.00 5.00 69.13 695.005.00 5.255.005.255.005.255.2500 69.14 5.25 5.70 5.00 5.00 69.15 705.005.00 5.255.005.255.005.255.2500 69.16 5.25 5.70 5.00 5.00 69.17 715.005.005.0069.18 5.25 5.70 69.19 (c) The actuarial valuation must use the applicable 69.20 following payroll growth assumption for calculating the 69.21 amortization requirement for the unfunded actuarial accrued 69.22 liability where the amortization retirement is calculated as a 69.23 level percentage of an increasing payroll: 69.24 payroll growth 69.25 plan assumption 69.26 general state employees retirement plan 5.00% 69.27 correctional state employees retirement plan 5.00 69.28 state patrol retirement plan 5.00 69.29 legislators retirement plan 5.00 69.30 elective state officers retirement plan 5.00 69.31 judges retirement plan 5.00 69.32 general public employees retirement plan 6.00 69.33 public employees police and fire 69.34 retirement plan 6.00 69.35 local government correctional service 69.36 retirement plan 6.00 69.37 teachers retirement plan 5.00 69.38 Duluth teachers retirement plan 5.00 69.39 Minneapolis teachers retirement plan 5.00 69.40 St. Paul teachers retirement plan 5.00 69.41 Sec. 2. [EFFECTIVE DATE.] 69.42 Section 1 is effective on June 30, 2002. 69.43 ARTICLE 9 69.44 AUTHORIZATION OF ADDITIONAL 69.45 SUPPLEMENTAL RETIREMENT PLANS 69.46 Section 1. Minnesota Statutes 2001 Supplement, section 69.47 356.24, subdivision 1, is amended to read: 69.48 Subdivision 1. [RESTRICTION; EXCEPTIONS.] It is unlawful 69.49 for a school district or other governmental subdivision or state 69.50 agency to levy taxes for, or contribute public funds to a 69.51 supplemental pension or deferred compensation plan that is 69.52 established, maintained, and operated in addition to a primary 70.1 pension program for the benefit of the governmental subdivision 70.2 employees other than: 70.3 (1) to a supplemental pension plan that was established, 70.4 maintained, and operated before May 6, 1971; 70.5 (2) to a plan that provides solely for group health, 70.6 hospital, disability, or death benefits; 70.7 (3) to the individual retirement account plan established 70.8 by chapter 354B; 70.9 (4) to a plan that provides solely for severance pay under 70.10 section 465.72 to a retiring or terminating employee; 70.11 (5) for employees other than personnel employed by the 70.12 board of trustees of the Minnesota state colleges and 70.13 universities and covered under the higher education supplemental 70.14 retirement plan under chapter 354C, if provided for in a 70.15 personnel policy of the public employer or in the collective 70.16 bargaining agreement between the public employer and the 70.17 exclusive representative of public employees in an appropriate 70.18 unit, in an amount matching employee contributions on a dollar 70.19 for dollar basis, but not to exceed an employer contribution of 70.20 $2,000 a year per employee; 70.21 (i) to the state of Minnesota deferred compensation plan 70.22 under section 352.96; or 70.23 (ii) in payment of the applicable portion of the 70.24 contribution made to any investment eligible under section 70.25 403(b) of the Internal Revenue Code, if the employing unit has 70.26 complied with any applicable pension plan provisions of the 70.27 Internal Revenue Code with respect to the tax-sheltered annuity 70.28 program during the preceding calendar year; 70.29 (6) for personnel employed by the board of trustees of the 70.30 Minnesota state colleges and universities and not covered by 70.31 clause (5), to the supplemental retirement plan under chapter 70.32 354C, if provided for in a personnel policy or in the collective 70.33 bargaining agreement of the public employer with the exclusive 70.34 representative of the covered employees in an appropriate unit, 70.35 in an amount matching employee contributions on a dollar for 70.36 dollar basis, but not to exceed an employer contribution of 71.1 $2,700 a year for each employee; 71.2 (7) to a supplemental plan or to a governmental trust to 71.3 save for postretirement health care expenses qualified for 71.4 tax-preferred treatment under the Internal Revenue Code, if 71.5 provided for in a personnel policy or in the collective 71.6 bargaining agreement of a public employer with the exclusive 71.7 representative of the covered employees in an appropriate unit; 71.8or71.9 (8) to the laborer's national industrial pension fund for 71.10 the employees of a governmental subdivision who are covered by a 71.11 collective bargaining agreement that provides for coverage by 71.12 that fund and that sets forth a fund contribution rate, but not 71.13 to exceed an employer contribution of $2,000 per year per 71.14 employee; 71.15 (9) to the plumbers' and pipefitters' national pension fund 71.16 for the employees of a governmental subdivision who are covered 71.17 by a collective bargaining agreement that provides for coverage 71.18 by that fund and that sets forth a fund contribution rate, but 71.19 not to exceed an employer contribution of $2,000 per year per 71.20 employee; 71.21 (10) to the international union of operating engineers 71.22 pension fund for the employees of a governmental subdivision who 71.23 are covered by a collective bargaining agreement that provides 71.24 for coverage by that fund and that sets forth a fund 71.25 contribution rate, but not to exceed an employer contribution of 71.26 $2,000 per year per employee; or 71.27 (11) to a supplemental plan organized and operated under 71.28 the federal Internal Revenue Code, as amended, that is wholly 71.29 and solely funded by the employee's accumulated sick leave, 71.30 accumulated vacation leave, and accumulated severance pay. 71.31 Sec. 2. Minnesota Statutes 2000, section 356.25, is 71.32 amended to read: 71.33 356.25 [LOCAL GOVERNMENTAL PENSION FUND PROHIBITIONS; 71.34 EXCLUSIONS.] 71.35 Notwithstanding any other provision of law or charter, no 71.36 city, county, public agency or instrumentality, or other 72.1 political subdivisionshall, after August 1, 1975,is required 72.2 or permitted to establish for any of its employees any local 72.3 pension plan or fund financed in whole or in part from public 72.4 funds, other than: 72.5 (1) a supplemental pension or deferred compensation plan 72.6 authorized under section 356.24; or 72.7 (2) a volunteer firefighter's relief association 72.8 establishedpursuant tounder chapter 424A and governed by 72.9 sections 69.771 to 69.776. 72.10 Sec. 3. [RATIFICATION AND VALIDATION OF CERTAIN PAST 72.11 ACTIONS.] 72.12 Any supplemental pension plan that is organized and 72.13 operated under section 401(a) of the federal Internal Revenue 72.14 Code, as amended, that is wholly and solely funded by an 72.15 employee's accumulated sick leave, accumulated vacation leave, 72.16 and accumulated severance pay, and that was established before 72.17 the effective date of this act and any contributions to the plan 72.18 that may be characterized as public funds within the meaning of 72.19 Minnesota Statutes, section 356.24, are hereby ratified and 72.20 validated. 72.21 Sec. 4. [EFFECTIVE DATE.] 72.22 Sections 1 to 3 are effective on the day following final 72.23 enactment. 72.24 ARTICLE 10 72.25 GENERAL RETIREMENT LAW 72.26 REORGANIZATION AND RECODIFICATION 72.27 PUBLIC RETIREMENT PLAN PURPOSE 72.28 Section 1. Minnesota Statutes 2000, section 356.001, is 72.29 amended to read: 72.30 356.001 [PURPOSE OF PUBLIC PLANS.] 72.31 Subdivision 1. [EXCLUSIVE BENEFIT OF MEMBERS AND 72.32 BENEFICIARIES.] (a) The public plans and funds specified in 72.33 subdivision 4 are established to provide for the retirement of 72.34 their members and to provide funds for the beneficiaries of 72.35 members in the event of death of a member. 72.36 (b) The public plans and funds are established andshall73.1 must be maintained for the exclusive benefit of the members and 73.2 the beneficiaries of the members. Except as provided in 73.3 subdivisions 2 and 3, no part of the moneys of the plans and 73.4 fundsshallmay revert to the plan or fund or be used for or 73.5 diverted to purposes other than the exclusive benefit of the 73.6 members or their beneficiaries. 73.7 Subd. 2. [ALLOWABLE EXPENSES.] The necessary, reasonable, 73.8 and direct expenses of maintaining, protecting, and 73.9 administering the public plan or fund, as authorized in the laws 73.10 governing the plan or fund,shallmust be considered as 73.11 expenditures for the exclusive benefit of the members or their 73.12 beneficiaries. 73.13 Subd. 3. [EFFECT OF AMENDMENTS OR TERMINATION.] (a) If a 73.14 public plan or fundasdefined in subdivision 4 is terminated or 73.15 the plan or fund provisions are amended, no part of the moneys 73.16 held in the plan or fundshallmay be used for or diverted to 73.17 any purpose other than the exclusive benefit of the members or 73.18 their beneficiaries, except as provided in this subdivision. 73.19 (b) If a plan or fund is terminated, all affected members 73.20 have a nonforfeitable interest in their benefits that were 73.21 accrued and funded to date. The value of the accrued benefits 73.22 to be credited to the account of each affected membershallmust 73.23 be calculated as of the date of termination and the funding 73.24 ratio of the plan or fund must be applied to the accrued benefit 73.25 of each affected member. 73.26 (c) The board of trustees of the plan or fund shallthen, 73.27 as soon as administratively feasible following the termination, 73.28 pay each eligible member or beneficiary on behalf of a member 73.29 the amount in the member's account in a lump sum. In the case 73.30 of a member whose whereabouts is unknown, the board shall notify 73.31 the member at the last known address by certified mail with 73.32 return receipt requested advising the member of the member's 73.33 right to a pending distribution. If the member cannot be 73.34 located in this manner, the board shall establish a custodial 73.35 account for the member's benefit in a federally insured bank, 73.36 savings association, or credit union in which the member's 74.1 account balanceshallmust be deposited. If the board receives 74.2 proof of death of a member that is satisfactory to the board, 74.3 the account balanceshallmust be paid to the beneficiary of the 74.4 member. 74.5 Subd. 4. [COVERED PLANS AND FUNDS.] This section applies 74.6 to all public pension and retirement plans and funds established 74.7pursuant tounder the laws of the state of Minnesota that 74.8 receive contributions from moneys derived from taxation. 74.9 Subd. 5. [CONSTRUCTION.] Nothing contained in this section 74.10shallmay be construed to authorize, or otherwise imply, a 74.11 legislative policy or intent favoring the termination of any 74.12 plan or fund to which this section applies. 74.13 PUBLIC PENSION PLAN ACTUARIAL, FINANCIAL, 74.14 AND INVESTMENT REPORTING 74.15 Sec. 2. Minnesota Statutes 2000, section 356.20, 74.16 subdivision 1, is amended to read: 74.17 Subdivision 1. [REPORT REQUIRED.] (a) The governing or 74.18 managing board or administrative officials of the public pension 74.19 and retirement funds enumerated in subdivision 2 shall annually 74.20 prepare and file a financial report following the close of each 74.21 fiscal year. 74.22 (b) This requirementshallalsoapplyapplies to any plan 74.23 or fund which may be a successor to any organization so 74.24 enumerated or to any newly formed retirement plan, fund or 74.25 association operating under the control or supervision of any 74.26 public employee group, governmental unit, or institution 74.27 receiving a portion of its support through legislative 74.28 appropriations. 74.29 (c) The reportshallmust be prepared under the supervision 74.30 and at the direction of the management of each fund andshall74.31 must be signed by the presiding officer of the managing board of 74.32 the fund and the chief administrative official of the fund. 74.33 Sec. 3. Minnesota Statutes 2000, section 356.20, 74.34 subdivision 2, is amended to read: 74.35 Subd. 2. [COVERED PUBLIC PENSION PLANS AND FUNDS.] This 74.36 section applies to the following public pension plans: 75.1 (1) the general state employees retirementfund.plan of 75.2 the Minnesota state retirement system; 75.3 (2) the general employees retirement plan of the public 75.4 employees retirementfund.association; 75.5 (3) the teachers retirement association.; 75.6 (4) the state patrol retirementfund.plan; 75.7 (5) the Minneapolis teachers retirement fund association.; 75.8 (6) the St. Paul teachers retirement fund association.; 75.9 (7) the Duluth teachers retirement fund association.; 75.10 (8) the Minneapolis employees retirement fund.; 75.11 (9) the University of Minnesota faculty retirement plan.; 75.12 (10) the University of Minnesota faculty supplemental 75.13 retirement plan.; 75.14 (11) the judges retirement fund.; 75.15 (12)Anya police or firefighter's relief association 75.16enumerateddescribed in section 69.77, subdivision 1a, or 75.17 69.771, subdivision 1.; 75.18 (13) the public employees police and firefund.plan of the 75.19 public employees retirement association; 75.20 (14) the correctional state employees retirement plan of 75.21 the Minnesota state retirement systemcorrectional officers75.22retirement fund.; and 75.23 (15)public employeesthe local government correctional 75.24 service retirement plan of the public employees retirement 75.25 association. 75.26 Sec. 4. Minnesota Statutes 2000, section 356.20, 75.27 subdivision 3, is amended to read: 75.28 Subd. 3. [FILING REQUIREMENT.] The financial report is a 75.29 public record. A copy of the report or a synopsis of the report 75.30 containing the information required by this sectionshallmust 75.31 be distributed annually to each member of the fund and to the 75.32 governing body of each governmental subdivision of the state 75.33 which makes employers contributions thereto or in whose behalf 75.34 taxes are levied for the employers' contribution. A signed copy 75.35 of the reportshallmust be delivered to the executive director 75.36 of the legislative commission on pensions and retirement and to 76.1 the legislative reference library not later than six months 76.2 after the close of each fiscal year or one month following the 76.3 completion and delivery to the retirement fund of the actuarial 76.4 valuation report of the fund by the actuary retained by the 76.5 legislative commission on pensions and retirement, if 76.6 applicable, whichever is later. 76.7 Sec. 5. Minnesota Statutes 2000, section 356.20, 76.8 subdivision 4, is amended to read: 76.9 Subd. 4. [CONTENTS OF FINANCIAL REPORT.] (a) The financial 76.10 report required by this section must contain financial 76.11 statements and disclosures that indicate the financial 76.12 operations and position of the retirement plan and fund. The 76.13 report must conform with generally accepted governmental 76.14 accounting principles, applied on a consistent basis. The 76.15 report must be audited. The report must include, as part of its 76.16 exhibits or footnotes, an actuarial disclosure item based on the 76.17 actuarial valuation calculations prepared by the 76.18 commission-retained actuary or by the actuary retained by the 76.19 retirement fund or plan, if applicable, according to applicable 76.20 actuarial requirements enumerated in section 356.215, and 76.21 specified in the most recent standards for actuarial work 76.22 adopted by the legislative commission on pensions and 76.23 retirement. The accrued assets, the accrued liabilities, 76.24 including accrued reserves, and the unfunded actuarial accrued 76.25 liability of the fund or plan must be disclosed. The disclosure 76.26 item must contain a declaration by the actuary retained by the 76.27 legislative commission on pensions and retirement or the actuary 76.28 retained by the fund or plan, whichever applies, specifying that 76.29 the required reserves for any retirement, disability, or 76.30 survivor benefits provided under a benefit formula are computed 76.31 in accordance with the entry age actuarial cost method and with 76.32 the most recent applicable standards for actuarial work adopted 76.33 by the legislative commission on pensions and retirement. 76.34(a)(b) Assets of the fund or plan contained in the 76.35 disclosure item must include the following statement of the 76.36 actuarial value of current assets as defined in section 356.215, 77.1 subdivision 1: 77.2 Value Value 77.3 at cost at market 77.4 Cash, cash equivalents, and 77.5 short-term securities ......... ......... 77.6 Accounts receivable ......... ......... 77.7 Accrued investment income ......... ......... 77.8 Fixed income investments ......... ......... 77.9 Equity investments other 77.10 than real estate ......... ......... 77.11 Real estate investments ......... ......... 77.12 Equipment ......... ......... 77.13 Equity in the Minnesota 77.14 postretirement investment 77.15 fund ......... ......... 77.16 Other ......... ......... 77.17 77.18 Total assets 77.19 Value at cost ......... 77.20 Value at market ......... 77.21 Value of current assets ......... 77.22(b)(c) The unfunded actuarial accrued liability of the 77.23 fund or plan contained in the disclosure item must include the 77.24 following measures of unfunded actuarial accrued liability, 77.25 using the value of current assets: 77.26 (1) unfunded actuarial accrued liability, determined by 77.27 subtracting the current assets and the present value of future 77.28 normal costs from the total current and expected future benefit 77.29 obligations; and 77.30 (2) unfunded pension benefit obligation, determined by 77.31 subtracting the current assets from the actuarial present value 77.32 of credited projected benefits. 77.33 If the current assets of the fund or plan exceed the 77.34 actuarial accrued liabilities, the excess must be disclosed and 77.35 indicated as a surplus. 77.36(c)(d) The pension benefit obligations schedule included 78.1 in the disclosure must contain the following information on the 78.2 benefit obligations: 78.3 (1) The pension benefit obligation, determined as the 78.4 actuarial present value of credited projected benefits on 78.5 account of service rendered to date, separately identified as 78.6 follows: 78.7 (i) For annuitants 78.8 Retirement annuities 78.9 Disability benefits 78.10 Surviving spouse and child benefits 78.11 (ii) For former members without vested rights 78.12 (iii) For deferred annuitants' benefits, including 78.13 any augmentation 78.14 (iv) For active employees 78.15 Accumulated employee contributions, 78.16 including allocated investment income 78.17 Employer-financed benefits vested 78.18 Employer-financed benefits nonvested 78.19 Total pension benefit obligation; and 78.20 (2) If there are additional benefits not appropriately 78.21 covered by the foregoing items of benefit obligations, a 78.22 separate identification of the obligation. 78.23(d)(e) Any additional statements or exhibits or more 78.24 detailed or subdivided itemization of a disclosure item that 78.25 will enable the management of the fund to portray a true 78.26 interpretation of the fund's financial condition must be 78.27 included in the additional statements or exhibits. 78.28 Sec. 6. Minnesota Statutes 2000, section 356.20, 78.29 subdivision 4a, is amended to read: 78.30 Subd. 4a. [FINANCIAL REPORT FOR POLICE OR FIREFIGHTERS 78.31 RELIEF ASSOCIATION.] For any police or firefighter's relief 78.32 association referred to in subdivision 2, clause (12), a 78.33 financial report duly filedpursuant toand meeting the 78.34 requirements of section 69.051shallmust be deemed to have met 78.35 the requirements of subdivision 4. 78.36 Sec. 7. Minnesota Statutes 2000, section 356.215, as 79.1 amended by Laws 2001, First Special Session chapter 10, article 79.2 11, section 18, is amended to read: 79.3 356.215 [ACTUARIAL VALUATIONS AND EXPERIENCE STUDIES.] 79.4 Subdivision 1. [DEFINITIONS.] (a) For the purposes of 79.5 sections 3.85 and 356.20 to 356.23, each of the terms in the 79.6 following paragraphs have the meaning given. 79.7 (b) "Actuarial valuation" means a set of calculations 79.8 prepared by the actuary retained by the legislative commission 79.9 on pensions and retirement if so required under section 3.85, or 79.10 otherwise, by an approved actuary, to determine the normal cost 79.11 and the accrued actuarial liabilities of a benefit plan, 79.12 according to the entry age actuarial cost method and based upon 79.13 stated assumptions including, but not limited to rates of 79.14 interest, mortality, salary increase, disability, withdrawal, 79.15 and retirement and to determine the payment necessary to 79.16 amortize over a stated period any unfunded accrued actuarial 79.17 liability disclosed as a result of the actuarial valuation of 79.18 the benefit plan. 79.19 (c) "Approved actuary" means a person who is regularly 79.20 engaged in the business of providing actuarial services and who 79.21 has at least 15 years of service to major public employee 79.22 pension or retirement funds or who is a fellow in the society of 79.23 actuaries. 79.24 (d) "Entry age actuarial cost method" means an actuarial 79.25 cost method under which the actuarial present value of the 79.26 projected benefits of each individual currently covered by the 79.27 benefit plan and included in the actuarial valuation is 79.28 allocated on a level basis over the service of the individual, 79.29 if the benefit plan is governed by section 69.773, or over the 79.30 earnings of the individual, if the benefit plan is governed by 79.31 any other law, between the entry age and the assumed exit age, 79.32 with the portion ofthisthe actuarial present value which is 79.33 allocated to the valuation year to be the normal cost and the 79.34 portion ofthisthe actuarial present value not provided for at 79.35 the valuation date by the actuarial present value of future 79.36 normal costs to be the actuarial accrued liability, with 80.1 aggregation in the calculation process to be the sum of the 80.2 calculated result for each covered individual and with 80.3 recognition given to any different benefit formulas which may 80.4 apply to various periods of service. 80.5 (e) "Experience study" means a report providing experience 80.6 data and an actuarial analysis of the adequacy of the actuarial 80.7 assumptions on which actuarial valuations are based. 80.8 (f) "Current assets" means: 80.9 (1)for the July 1, 1999, actuarial valuation, the value of80.10all assets at cost, including realized capital gains or losses,80.11plus one-third of any unrealized capital gains or losses;80.12(2) for the July 1, 2000, actuarial valuation, the market80.13value of all assets as of June 30, 2000, reduced by:80.14(i) 60 percent of the difference between the market value80.15of all assets as of June 30, 1999, and the actuarial value of80.16assets used in the July 1, 1999, actuarial valuation, and80.17(ii) 80 percent of the difference between the actual net80.18change in the market value of assets between June 30, 1999, and80.19June 30, 2000, and the computed increase in the market value of80.20assets between June 30, 1999, and June 30, 2000, if the assets80.21had increased at the percentage preretirement interest rate80.22assumption used in the July 1, 1999, actuarial valuation;80.23(3)for the July 1, 2001, actuarial valuation, the market 80.24 value of all assets as of June 30, 2001, reduced by: 80.25 (i) 30 percent of the difference between the market value 80.26 of all assets as of June 30, 1999, and the actuarial value of 80.27 assets used in the July 1, 1999, actuarial valuation; 80.28 (ii) 60 percent of the difference between the actual net 80.29 change in the market value of assets between June 30, 1999, and 80.30 June 30, 2000, and the computed increase in the market value of 80.31 assets between June 30, 1999, and June 30, 2000, if the assets 80.32 had increased at the percentage preretirement interest rate 80.33 assumption used in the July 1, 1999, actuarial valuation; and 80.34 (iii) 80 percent of the difference between the actual net 80.35 change in the market value of assets between June 30, 2000, and 80.36 June 30, 2001, and the computed increase in the market value of 81.1 assets between June 30, 2000, and June 30, 2001, if the assets 81.2 had increased at the percentage preretirement interest rate 81.3 assumption used in the July 1, 2000, actuarial valuation; 81.4(4)(2) for the July 1, 2002, actuarial valuation, the 81.5 market value of all assets as of June 30, 2002, reduced by: 81.6 (i) ten percent of the difference between the market value 81.7 of all assets as of June 30, 1999, and the actuarial value of 81.8 assets used in the July 1, 1999, actuarial valuation; 81.9 (ii) 40 percent of the difference between the actual net 81.10 change in the market value of assets between June 30, 1999, and 81.11 June 30, 2000, and the computed increase in the market value of 81.12 assets between June 30, 1999, and June 30, 2000, if the assets 81.13 had increased at the percentage preretirement interest rate 81.14 assumption used in the July 1, 1999, actuarial valuation; 81.15 (iii) 60 percent of the difference between the actual net 81.16 change in the market value of assets between June 30, 2000, and 81.17 June 30, 2001, and the computed increase in the market value of 81.18 assets between June 30, 2000, and June 30, 2001, if the assets 81.19 had increased at the percentage preretirement interest rate 81.20 assumption used in the July 1, 2000, actuarial valuation; and 81.21 (iv) 80 percent of the difference between the actual net 81.22 change in the market value of assets between June 30, 2001, and 81.23 June 30, 2002, and the computed increase in the market value of 81.24 assets between June 30, 2001, and June 30, 2002, if the assets 81.25 had increased at the percentage preretirement interest rate 81.26 assumption used in the July 1, 2001, actuarial valuation; or 81.27(5)(3) for any actuarial valuation after July 1, 2002, the 81.28 market value of all assets as of the preceding June 30, reduced 81.29 by: 81.30 (i) 20 percent of the difference between the actual net 81.31 change in the market value of assets between the June 30 that 81.32 occurred three years earlier and the June 30 that occurred four 81.33 years earlier and the computed increase in the market value of 81.34 assets over that fiscal year period if the assets had increased 81.35 at the percentage preretirement interest rate assumption used in 81.36 the actuarial valuation for the July 1 that occurred four years 82.1 earlier; 82.2 (ii) 40 percent of the difference between the actual net 82.3 change in the market value of assets between the June 30 that 82.4 occurred two years earlier and the June 30 that occurred three 82.5 years earlier and the computed increase in the market value of 82.6 assets over that fiscal year period if the assets had increased 82.7 at the percentage preretirement interest rate assumption used in 82.8 the actuarial valuation for the July 1 that occurred three years 82.9 earlier; 82.10 (iii) 60 percent of the difference between the actual net 82.11 change in the market value of assets between the June 30 that 82.12 occurred one year earlier and the June 30 that occurred two 82.13 years earlier and the computed increase in the market value of 82.14 assets over that fiscal year period if the assets had increased 82.15 at the percentage preretirement interest rate assumption used in 82.16 the actuarial valuation for the July 1 that occurred two years 82.17 earlier; and 82.18 (iv) 80 percent of the difference between the actual net 82.19 change in the market value of assets between the immediately 82.20 prior June 30 and the June 30 that occurred one year earlier and 82.21 the computed increase in the market value of assets over that 82.22 fiscal year period if the assets had increased at the percentage 82.23 preretirement interest rate assumption used in the actuarial 82.24 valuation for the July 1 that occurred one year earlier. 82.25 (g) "Unfunded actuarial accrued liability" means the total 82.26 current and expected future benefit obligations, reduced by the 82.27 sum of current assets and the present value of future normal 82.28 costs. 82.29 (h) "Pension benefit obligation" means the actuarial 82.30 present value of credited projected benefits, determined as the 82.31 actuarial present value of benefits estimated to be payable in 82.32 the future as a result of employee service attributing an equal 82.33 benefit amount, including the effect of projected salary 82.34 increases and any step rate benefit accrual rate differences, to 82.35 each year of credited and expected future employee service. 82.36 Subd. 2. [REQUIREMENTS.] (a) It is the policy of the 83.1 legislature that it is necessary and appropriate to determine 83.2 annually the financial status of tax supported retirement and 83.3 pension plans for public employees. To achieve this goal: 83.4 (1) the legislative commission on pensions and retirement 83.5 shall have prepared by the actuary retained by the commission 83.6 annual actuarial valuations of the retirement plans enumerated 83.7 in section 3.85, subdivision 11, paragraph (b), and quadrennial 83.8 experience studies of the retirement plans enumerated in section 83.9 3.85, subdivision 11, paragraph (b), clauses (1), (2), and (7); 83.10 and 83.11 (2) the commissioner of finance may have prepared by the 83.12 actuary retained by the commission, two years after each set of 83.13 quadrennial experience studies, quadrennial projection 83.14 valuations of at least one of the retirement plans enumerated in 83.15 section 3.85, subdivision 11, paragraph (b), for which the 83.16 commissioner determines that the analysis may be beneficial. 83.17 (b) The governing or managing board or administrative 83.18 officials of each public pension and retirement fund or plan 83.19 enumerated in section 356.20, subdivision 2, clauses (9), (10), 83.20 and (12), shall have prepared by an approved actuary annual 83.21 actuarial valuations of their respective funds as provided in 83.22 this section. This requirement also applies to any fund or plan 83.23 that is the successor to any organization enumerated in section 83.24 356.20, subdivision 2, or to the governing or managing board or 83.25 administrative officials of any newly formed retirement fund, 83.26 plan, or association operating under the control or supervision 83.27 of any public employee group, governmental unit, or institution 83.28 receiving a portion of its support through legislative 83.29 appropriations, and any local police or fire fundcoming within83.30the provisions ofto which section 356.216 applies. 83.31 Subd. 2a. [PROJECTION VALUATION REQUIREMENTS.] (a) A 83.32 quadrennial projection valuationrequiredauthorized under 83.33 subdivision 2 is intended to serve as an additional analytical 83.34 tool with which policy makers may assess the future funding 83.35 status of public plans through forecasting and testing various 83.36 potential outcomes over time if certain plan assumptions or 84.1 valuation methods were to be modified. 84.2 (b) In consultation with the retirement fund directors, the 84.3 state economist, the state demographer, the commissioner of 84.4 finance, and the commissioner of employee relations, the actuary 84.5 retained by the legislative commission on pensions and 84.6 retirement shall perform the quadrennial projection valuations 84.7 on behalf of the commissioner of finance, testing future 84.8 implications for plan funding by modifying assumptions and 84.9 methods currently in place. The commission-retained actuary 84.10 shall provide advice to the commissioner as to the periods over 84.11 which such projections should be made, the nature and scope of 84.12 the scenarios to be analyzed, and the measures of funding status 84.13 to be employed, and shall report the results of these analyses 84.14 in the same manner as for quadrennial experience studies. 84.15 Subd. 3. [REPORTS.] (a) The actuarial valuations required 84.16 annually must be made as of the beginning of each fiscal year. 84.17 (b) Two copies of the valuation must be delivered to the 84.18 executive director of the legislative commission on pensions and 84.19 retirement, to the commissioner of finance and to the 84.20 legislative reference library, not later than the first day of 84.21 the sixth month occurring after the end of the previous fiscal 84.22 year. 84.23 (c) Two copies of a quadrennial experience study must be 84.24 filed with the executive director of the legislative commission 84.25 on pensions and retirement, with the commissioner of finance, 84.26 and with the legislative reference library, not later than the 84.27 first day of the 11th month occurring after the end of the last 84.28 fiscal year of the four-year period which the experience study 84.29 covers. 84.30 (d) For actuarial valuations and experience studies 84.31 prepared at the direction of the legislative commission on 84.32 pensions and retirement, two copies of the document must be 84.33 delivered to the governing or managing board or administrative 84.34 officials of the applicable public pension and retirement fund 84.35 or plan. 84.36 Subd. 4. [ACTUARIAL VALUATION; CONTENTS.] (a) The 85.1 actuarial valuation must be made in conformity with the 85.2 requirements of the definition contained in subdivision 1 and 85.3 the most recent standards for actuarial work adopted by the 85.4 legislative commission on pensions and retirement. 85.5 (b) The actuarial valuation must measure all aspects of the 85.6 benefit plan of the fund in accordance with changes in benefit 85.7 plans, if any, and salaries reasonably anticipated to be in 85.8 force during the ensuing fiscal year. The actuarial valuation 85.9 must be prepared in accordance with the entry age actuarial cost 85.10 method. The actuarial valuation required under this section 85.11 must include the information required in subdivisions4a5 to4k85.12 15. 85.13 Subd.4a5. [NORMAL COST.] For a fund providing benefits 85.14 in whole or in part under a defined benefit plan, the actuarial 85.15 valuation must indicate the level normal cost of the benefits 85.16 providedbyunder the laws governing the fund as of the date of 85.17 the valuation, calculated in accordance with the entry age 85.18 actuarial cost method. The normal cost must be expressed as a 85.19 level percentage of the present value of future payrolls of the 85.20 active participants of the fund as of the date of the valuation. 85.21 Subd.4b6. [ACCRUED LIABILITY.] For a fund providing 85.22 benefits under a defined benefit plan, the actuarial valuation 85.23 must contain an exhibit indicating the actuarial accrued 85.24 liabilities of the fund. This figure is the present value of 85.25 future benefits,reduced by the present value of future normal 85.26 costs, calculated in accordance with the entry age actuarial 85.27 cost method. 85.28 Subd.4c7. [DEFINED CONTRIBUTION PLAN ACCUMULATIONS.] For 85.29 each fund providing benefits underthea money purchase or 85.30 defined contribution plan, the actuarial valuationshallmust 85.31 contain an exhibit indicating the member contributions 85.32 accumulated at interest, as apportioned to members accounts, to 85.33 the date of the valuation. These accumulationsshallmust be 85.34 separately tabulated in a manner which properly reflects any 85.35 differences in money purchase or defined contribution annuity 85.36 rates which may apply. 86.1 Subd.4d8. [INTEREST AND SALARY ASSUMPTIONS.] (a) The 86.2 actuarial valuation must use the applicable following 86.3 preretirement interest assumption and the applicable following 86.4 postretirement interest assumption: 86.5 preretirement postretirement 86.6 interest rate interest rate 86.7 plan assumption assumption 86.8 general state employees 86.9 retirement plan 8.5% 6.0% 86.10 correctional state employees 86.11 retirement plan 8.5 6.0 86.12 state patrol retirement plan 8.5 6.0 86.13 legislators retirement plan 8.5 6.0 86.14 elective state officers 86.15 retirement plan 8.5 6.0 86.16 judges retirement plan 8.5 6.0 86.17 general public employees 86.18 retirement plan 8.5 6.0 86.19 public employees police and fire 86.20 retirement plan 8.5 6.0 86.21 local government correctional 86.22 service retirement plan 8.5 6.0 86.23 teachers retirement plan 8.5 6.0 86.24 Minneapolis employees 86.25 retirement plan 6.0 5.0 86.26 Duluth teachers retirement plan 8.5 8.5 86.27 Minneapolis teachers retirement 86.28 plan 8.5 8.5 86.29 St. Paul teachers retirement 86.30 plan 8.5 8.5 86.31 Minneapolis police relief 86.32 association 6.0 6.0 86.33other localFairmont police relief 86.34associationsassociation 5.0 5.0 86.35 Minneapolis fire department 86.36 relief association 6.0 6.0 86.37other local salaried firefighters86.38 Virginia fire department 86.39 reliefassociationsassociation 5.0 5.0 86.40 local monthly benefit volunteer 86.41 firefighters relief associations 5.0 5.0 86.42 (b) The actuarial valuation must use the applicable 86.43 following single rate future salary increase assumption, the 86.44 applicable following modified single rate future salary increase 86.45 assumption, or the applicable following graded rate future 86.46 salary increase assumption: 86.47 (1) single rate future salary increase assumption 86.48 future salary 86.49 plan increase assumption 86.50 legislators retirement plan 5.0% 86.51 elective state officers retirement 86.52 plan 5.0 86.53 judges retirement plan 5.0 86.54 Minneapolis police relief association 4.0 86.55other localFairmont police relief 86.56associationsassociation 3.5 86.57 Minneapolis fire department relief 86.58 association 4.0 86.59other local salaried firefighters86.60 Virginia fire department 87.1 reliefassociationsassociation 3.5 87.2 (2) modified single rate future salary increase assumption 87.3 future salary 87.4 plan increase assumption 87.5 Minneapolis employees the prior calendar year 87.6 retirement plan amount increased first by 87.7 1.0198 percent to prior 87.8 fiscal year date and 87.9 then increased by 4.0 87.10 percent annually for 87.11 each future year 87.12 (3) select and ultimate future salary increase assumption 87.13 or graded rate future salary increase assumption 87.14 future salary 87.15 plan increase assumption 87.16 general state employees select calculation and 87.17 retirement plan assumption A 87.18 correctional state employees 87.19 retirement plan assumption H 87.20 state patrol retirement plan assumption H 87.21 general public employees select calculation and 87.22 retirement plan assumption B 87.23 public employees police and fire 87.24 fund retirement plan assumption C 87.25 local government correctional service 87.26 retirement plan assumption H 87.27 teachers retirement plan assumption D 87.28 Duluth teachers retirement plan assumption E 87.29 Minneapolis teachers retirement plan assumption F 87.30 St. Paul teachers retirement plan assumption G 87.31 87.32 The select calculation is: 87.33 during the ten-year select period,0.2a designated percent 87.34 is multiplied by the result of ten minus T, where T is 87.35 the number of completed years of service, and is added 87.36 to the applicable future salary increase assumption. The 87.37 designated percent is 0.2 percent for the correctional state 87.38 employees retirement plan, the state patrol retirement 87.39 plan, the public employees police and fire plan, and the 87.40 local government correctional service plan; 0.3 percent 87.41 for the general state employees retirement plan, the 87.42 general public employees retirement plan, the teachers 87.43 retirement plan, the Duluth teachers retirement fund 87.44 association, and the Saint Paul teachers retirement fund 87.45 association; and 0.4 percent for the Minneapolis teachers 87.46 retirement fund association. 87.47 87.48 The ultimate future salary increase assumption is: 87.49 87.50 age A B C D E F G H 87.51 16 6.95% 6.95% 11.50% 8.20% 8.00%7.50%7.25% 7.7500 87.52 6.50 6.90 87.53 17 6.90 6.90 11.50 8.15 8.007.507.257.7500 87.54 6.50 6.90 87.55 18 6.85 6.85 11.50 8.10 8.007.507.257.7500 87.56 6.50 6.90 87.57 19 6.80 6.80 11.50 8.05 8.007.507.257.7500 87.58 6.50 6.90 87.59 20 6.756.7511.508.008.007.507.257.7500 87.60 6.40 6.00 6.90 6.50 6.90 87.61 216.706.7011.507.958.007.507.257.1454 87.62 6.75 6.40 6.00 6.90 6.50 6.90 87.63 226.656.6511.007.908.007.507.257.0725 87.64 6.75 6.40 6.00 6.90 6.50 6.90 87.65 23 6.75 6.40 10.50 6.00 6.85 6.50 6.85 7.0544 87.66 246.666.5510.007.807.807.307.207.0363 88.1 6.75 6.40 6.00 6.80 6.50 6.80 88.2 256.506.509.507.757.707.207.157.0000 88.3 6.75 6.40 6.00 6.75 6.50 6.75 88.4 266.456.459.207.707.607.107.107.0000 88.5 6.75 6.36 6.00 6.70 6.50 6.70 88.6 276.406.408.907.657.507.007.057.0000 88.7 6.75 6.32 6.00 6.65 6.50 6.65 88.8 286.356.358.607.607.406.907.007.0000 88.9 6.75 6.28 6.00 6.60 6.50 6.60 88.10 296.306.308.307.557.306.806.957.0000 88.11 6.75 6.24 6.00 6.55 6.50 6.55 88.12 306.256.308.007.507.206.706.907.0000 88.13 6.75 6.20 6.00 6.50 6.50 6.50 88.14 316.206.257.807.457.106.606.857.0000 88.15 6.75 6.16 6.00 6.45 6.50 6.45 88.16 326.156.217.607.407.006.506.807.0000 88.17 6.75 6.12 6.00 6.40 6.50 6.40 88.18 336.106.177.407.306.906.406.757.0000 88.19 6.75 6.08 6.00 6.35 6.50 6.35 88.20 346.056.097.207.106.806.306.707.0000 88.21 6.75 6.04 6.00 6.30 6.50 6.30 88.22 356.006.057.007.006.706.206.657.0000 88.23 6.75 6.00 6.00 6.25 6.50 6.25 88.24 366.956.016.806.856.606.106.606.9019 88.25 6.75 5.96 6.00 6.20 6.50 6.20 88.26 375.905.976.606.706.506.006.556.8074 88.27 6.75 5.92 6.00 6.15 6.50 6.15 88.28 385.855.936.406.556.405.906.506.7125 88.29 6.75 5.88 5.90 6.10 6.50 6.10 88.30 395.805.896.206.406.305.806.406.6054 88.31 6.75 5.84 5.80 6.05 6.50 6.05 88.32 405.755.856.006.256.205.706.306.5000 88.33 6.75 5.80 5.70 6.00 6.50 6.00 88.34 415.705.815.906.106.105.606.206.3540 88.35 6.75 5.76 5.60 5.90 6.50 5.95 88.36 425.655.775.805.956.005.506.106.2087 88.37 6.75 5.72 5.50 5.80 6.50 5.90 88.38 435.605.735.705.805.905.456.006.0622 88.39 6.65 5.68 5.40 5.70 6.50 5.85 88.40 445.555.695.605.655.805.405.905.9048 88.41 6.55 5.64 5.30 5.60 6.50 5.80 88.42 455.505.655.505.505.705.355.805.7500 88.43 6.45 5.60 5.20 5.50 6.50 5.75 88.44 465.455.625.455.455.605.305.705.6940 88.45 6.35 5.56 5.10 5.40 6.40 5.70 88.46 475.405.595.405.405.505.255.65 5.6375 88.47 6.25 5.52 5.00 5.30 6.30 88.48 485.355.565.355.355.455.205.60 5.5822 88.49 6.15 5.48 5.00 5.20 6.20 88.50 495.305.535.305.305.405.155.55 5.5404 88.51 6.05 5.44 5.00 5.10 6.10 88.52 505.255.505.255.255.355.105.50 5.5000 88.53 5.95 5.40 5.00 5.00 6.00 88.54 515.205.455.255.205.305.055.45 5.4384 88.55 5.85 5.36 5.00 5.00 5.90 88.56 525.155.405.255.155.255.005.40 5.3776 88.57 5.75 5.32 5.00 5.00 5.80 88.58 535.105.355.255.105.255.005.35 5.3167 88.59 5.65 5.28 5.00 5.00 5.70 88.60 545.055.305.255.055.255.005.30 5.2826 88.61 5.55 5.24 5.00 5.00 5.60 88.62 555.005.255.25 5.005.255.005.25 5.2500 88.63 5.45 5.20 5.00 5.50 88.64 565.005.205.25 5.005.255.005.255.2500 88.65 5.35 5.16 5.00 5.40 5.20 88.66 575.005.155.25 5.005.255.005.255.2500 88.67 5.25 5.12 5.00 5.30 5.15 88.68 585.005.105.255.005.255.005.255.2500 88.69 5.25 5.08 5.10 5.00 5.20 5.10 88.70 595.005.055.255.005.255.005.255.2500 88.71 5.25 5.04 5.20 5.00 5.10 5.05 89.1 605.005.00 5.255.005.255.005.255.2500 89.2 5.25 5.30 5.00 5.00 89.3 615.005.00 5.255.005.255.005.255.2500 89.4 5.25 5.40 5.00 5.00 89.5 625.005.00 5.255.005.255.005.255.2500 89.6 5.25 5.50 5.00 5.00 89.7 635.005.00 5.255.005.255.005.255.2500 89.8 5.25 5.60 5.00 5.00 89.9 645.005.00 5.255.005.255.005.255.2500 89.10 5.25 5.70 5.00 5.00 89.11 655.005.00 5.255.005.255.005.255.2500 89.12 5.25 5.70 5.00 5.00 89.13 665.005.00 5.255.005.255.005.255.2500 89.14 5.25 5.70 5.00 5.00 89.15 675.005.00 5.255.005.255.005.255.2500 89.16 5.25 5.70 5.00 5.00 89.17 685.005.00 5.255.005.255.005.255.2500 89.18 5.25 5.70 5.00 5.00 89.19 695.005.00 5.255.005.255.005.255.2500 89.20 5.25 5.70 5.00 5.00 89.21 705.005.00 5.255.005.255.005.255.2500 89.22 5.25 5.70 5.00 5.00 89.23 715.005.005.0089.24 5.25 5.70 89.25 (c) The actuarial valuation must use the applicable 89.26 following payroll growth assumption for calculating the 89.27 amortization requirement for the unfunded actuarial accrued 89.28 liability where the amortization retirement is calculated as a 89.29 level percentage of an increasing payroll: 89.30 payroll growth 89.31 plan assumption 89.32 general state employees retirement plan 5.00% 89.33 correctional state employees retirement plan 5.00 89.34 state patrol retirement plan 5.00 89.35 legislators retirement plan 5.00 89.36 elective state officers retirement plan 5.00 89.37 judges retirement plan 5.00 89.38 general public employees retirement plan 6.00 89.39 public employees police and fire 89.40 retirement plan 6.00 89.41 local government correctional service 89.42 retirement plan 6.00 89.43 teachers retirement plan 5.00 89.44 Duluth teachers retirement plan 5.00 89.45 Minneapolis teachers retirement plan 5.00 89.46 St. Paul teachers retirement plan 5.00 89.48 Subd.4e9. [OTHER ASSUMPTIONS.] The actuarial valuation 89.49 must use assumptions concerning mortality, disability, 89.50 retirement, withdrawal, retirement age, and any other relevant 89.51 demographic or economic factor. These assumptions must be set 89.52 at levels consistent with those determined in the most recent 89.53 quadrennial experience study completed under subdivision516, 89.54 if required, or representative of the best estimate of future 89.55 experience, if a quadrennial experience study is not required. 89.56 The actuarial valuation must contain an exhibit indicating any 90.1 actuarial assumptions used in preparing the valuation report. 90.2 Subd.4f10. [PUBLIC SECTOR ACCOUNTING DISCLOSURE 90.3 INFORMATION.] The actuarial valuation must contain those 90.4 actuarial calculations that are necessary to allow the 90.5 retirement plan administration or participating employing units 90.6 to prepare the pension-related portions of annual financial 90.7 reporting that meet generally accepted accounting principles for 90.8 the public sector. 90.9 Subd.4g11. [AMORTIZATION CONTRIBUTIONS.] (a) In addition 90.10 to the exhibit indicating the level normal cost, the actuarial 90.11 valuation must contain an exhibit indicating the additional 90.12 annual contribution sufficient to amortize the unfunded 90.13 actuarial accrued liability. For funds governed by chapters 3A, 90.14 352, 352B, 352C, 353, 354, 354A, and 490, the additional 90.15 contribution must be calculated on a level percentage of covered 90.16 payroll basis by the established date for full funding in effect 90.17 when the valuation is prepared. For funds governed by chapter 90.18 3A, sections 352.90 through 352.951, chapters 352B, 352C, 90.19 sections 353.63 through 353.68, and chapters 353C, 354A, and 90.20 490, the level percent additional contribution must be 90.21 calculated assuming annual payroll growth of 6.5 percent. For 90.22 funds governed by sections 352.01 through 352.86 and chapter 90.23 354, the level percent additional contribution must be 90.24 calculated assuming an annual payroll growth of five percent. 90.25 For the fund governed by sections 353.01 through 353.46, the 90.26 level percent additional contribution must be calculated 90.27 assuming an annual payroll growth of six percent. For all other 90.28 funds, the additional annual contribution must be calculated on 90.29 a level annual dollar amount basis. 90.30 (b) For any fund other than the Minneapolis employees 90.31 retirement fund and the public employees retirement association 90.32 general plan, if there has not been a change in the actuarial 90.33 assumptions used for calculating the actuarial accrued liability 90.34 of the fund, a change in the benefit plan governing annuities 90.35 and benefits payable from the fund, a change in the actuarial 90.36 cost method used in calculating the actuarial accrued liability 91.1 of all or a portion of the fund, or a combination of the three, 91.2 which change or changes by itself or by themselves without 91.3 inclusion of any other items of increase or decrease produce a 91.4 net increase in the unfunded actuarial accrued liability of the 91.5 fund, the established date for full funding is the first 91.6 actuarial valuation date occurring after June 1, 2020. 91.7 (c) For any fund or plan other than the Minneapolis 91.8 employees retirement fund and the public employees retirement 91.9 association general plan, if there has been a change in any or 91.10 all of the actuarial assumptions used for calculating the 91.11 actuarial accrued liability of the fund, a change in the benefit 91.12 plan governing annuities and benefits payable from the fund, a 91.13 change in the actuarial cost method used in calculating the 91.14 actuarial accrued liability of all or a portion of the fund, or 91.15 a combination of the three, and the change or changes, by itself 91.16 or by themselves and without inclusion of any other items of 91.17 increase or decrease, produce a net increase in the unfunded 91.18 actuarial accrued liability in the fund, the established date 91.19 for full funding must be determined using the following 91.20 procedure: 91.21 (i) the unfunded actuarial accrued liability of the fund 91.22 must be determined in accordance with the plan provisions 91.23 governing annuities and retirement benefits and the actuarial 91.24 assumptions in effect before an applicable change; 91.25 (ii) the level annual dollar contribution or level 91.26 percentage, whichever is applicable, needed to amortize the 91.27 unfunded actuarial accrued liability amount determined under 91.28 item (i) by the established date for full funding in effect 91.29 before the change must be calculated using the interest 91.30 assumption specified in subdivision4d8 in effect before the 91.31 change; 91.32 (iii) the unfunded actuarial accrued liability of the fund 91.33 must be determined in accordance with any new plan provisions 91.34 governing annuities and benefits payable from the fund and any 91.35 new actuarial assumptions and the remaining plan provisions 91.36 governing annuities and benefits payable from the fund and 92.1 actuarial assumptions in effect before the change; 92.2 (iv) the level annual dollar contribution or level 92.3 percentage, whichever is applicable, needed to amortize the 92.4 difference between the unfunded actuarial accrued liability 92.5 amount calculated under item (i) and the unfunded actuarial 92.6 accrued liability amount calculated under item (iii) over a 92.7 period of 30 years from the end of the plan year in which the 92.8 applicable change is effective must be calculated using the 92.9 applicable interest assumption specified in subdivision4d8 in 92.10 effect after any applicable change; 92.11 (v) the level annual dollar or level percentage 92.12 amortization contribution under item (iv) must be added to the 92.13 level annual dollar amortization contribution or level 92.14 percentage calculated under item (ii); 92.15 (vi) the period in which the unfunded actuarial accrued 92.16 liability amount determined in item (iii) is amortized by the 92.17 total level annual dollar or level percentage amortization 92.18 contribution computed under item (v) must be calculated using 92.19 the interest assumption specified in subdivision4d8 in effect 92.20 after any applicable change, rounded to the nearest integral 92.21 number of years, but not to exceed 30 years from the end of the 92.22 plan year in which the determination of the established date for 92.23 full funding using the procedure set forth in this clause is 92.24 made and not to be less than the period of years beginning in 92.25 the plan year in which the determination of the established date 92.26 for full funding using the procedure set forth in this clause is 92.27 made and ending by the date for full funding in effect before 92.28 the change; and 92.29 (vii) the period determined under item (vi) must be added 92.30 to the date as of which the actuarial valuation was prepared and 92.31 the date obtained is the new established date for full funding. 92.32 (d) For the Minneapolis employees retirement fund, the 92.33 established date for full funding is June 30, 2020. 92.34 (e) For the general employees retirement plan of the public 92.35 employees retirement associationgeneral plan, the established 92.36 date for full funding is June 30, 2031. 93.1 (f) For the retirement plans for which the annual actuarial 93.2 valuation indicates an excess of valuation assets over the 93.3 actuarial accrued liability, the valuation assets in excess of 93.4 the actuarial accrued liability must be recognized as a 93.5 reduction in the current contribution requirements by an amount 93.6 equal to the amortization of the excess expressed as a level 93.7 percentage of pay over a 30-year period beginning anew with each 93.8 annual actuarial valuation of the plan. 93.9 Subd.4h12. [ACTUARIAL GAINS AND LOSSES.] The actuarial 93.10 valuation must contain an exhibit consisting of an analysis by 93.11 the actuary explaining the net increase or decrease in the 93.12 unfunded actuarial accrued liability since the last valuation. 93.13 The explanation must subdivide the net increase or decrease in 93.14 the unfunded actuarial accrued liability into at least the 93.15 following parts: 93.16(a)(1) increases or decreases in the unfunded actuarial 93.17 accrued liability because of changes in benefits; 93.18(b)(2) increases and decreases in the unfunded actuarial 93.19 accrued liability because of changes in actuarial assumptions; 93.20(c)(3) increases or decreases in the unfunded actuarial 93.21 accrued liability attributable to actuarial gains or losses 93.22 resulting from any experience deviations from the assumptions on 93.23 which the valuation is based, as follows: 93.24 (i) actual investment earnings; 93.25 (ii) actual postretirement mortality rates; 93.26 (iii) actual salary increase rates; and 93.27 (iv) the remainder of the increase or decrease not 93.28 attributable to any separate source; 93.29(d)(4) increases or decreases in unfunded actuarial 93.30 accrued liability because of other reasons, including the effect 93.31 of any amortization contribution paid or additional amortization 93.32 contribution previously calculated but unpaid; and 93.33(e)(5) increases or decreases in unfunded actuarial 93.34 accrued liability because of changes in eligibility requirements 93.35 or groups included in the membership of the fund. 93.36 Subd.4i13. [MEMBERSHIP TABULATION.] (a) The actuarial 94.1 valuation must contain a tabulation of active membership and 94.2 annuitants in the fund. If the membership of a fund is under 94.3 more than one general benefit program, a separate tabulation 94.4 must be made for each general benefit program. 94.5 (b) The tabulations must be prepared by the administration 94.6 of the pension fund and must contain the following information: 94.7 (1) Active members Number 94.8 As of last valuation date 94.9 New entrants 94.10 Total 94.11 Separations from active service 94.12 Refund of contributions 94.13 Separation with deferred annuity 94.14 Separation with neither refund 94.15 nor deferred annuity 94.16 Disability 94.17 Death 94.18 Retirement with service annuity 94.19 Total separations 94.20 As of current valuation date 94.21 (2) Annuitants Number 94.22 As of last valuation date 94.23 New entrants 94.24 Total 94.25 Terminations 94.26 Deaths 94.27 Other 94.28 Total terminations 94.29 As of current valuation date 94.30 (c) The tabulation required under paragraph (b), clause 94.31 (2), must be made separately for each of the following classes 94.32 of benefit recipients: 94.33 (1) service retirement annuitants; 94.34 (2) disability benefit recipients; 94.35 (3) survivor benefit recipients; and 94.36 (4) deferred annuitants. 95.1 Subd.4j14. [ADMINISTRATIVE EXPENSES.] (a) The actuarial 95.2 valuation must indicate the administrative expenses of the fund, 95.3 expressed both in dollars and as a percentage of covered payroll. 95.4 (b) Administrative expenses are the costs incurred by the 95.5 retirement plans in the course of operating the plan, excluding 95.6 investment expenses. Investment expenses include all expenses 95.7 incurred for the retention of professional external investment 95.8 managers and professional investment consultants, custodian bank 95.9 fees, investment transaction costs, and the costs incurred by 95.10 the retirement plans to manage investment portfolios or assets 95.11 internally. Investment expenses must be deducted from the 95.12 investment return used in the actuarial valuation, and must not 95.13 be included in administrative expenses when calculating the 95.14 allowance for expenses. 95.15 Subd.4k15. [BENEFIT PLAN SUMMARY.] The actuarial 95.16 valuation must contain a summary of the principal provisions of 95.17 the benefit plan upon which the valuation is based. 95.18 Subd.516. [QUADRENNIAL EXPERIENCE STUDY; CONTENTS.] A 95.19 quadrennial experience study, if required, must contain an 95.20actuarialanalysis by the approved actuary of the experience of 95.21 the fund and a comparison of the experience with the actuarial 95.22 assumptions on which the most recent actuarial valuation of the 95.23 retirement fund was based. 95.24 Subd.617. [ACTUARIAL SERVICES BY APPROVED ACTUARIES.] 95.25 (a) The actuarial valuation or quadrennial experience study must 95.26 be made and any actuarial consulting services for a retirement 95.27 fund or plan must be provided by an approved actuary. The 95.28 actuarial valuation or quadrennial experience study must include 95.29 a signed written declaration that it has been prepared according 95.30 to sections 356.20 to 356.23 and according to the most recent 95.31 standards for actuarial work adopted by the legislative 95.32 commission on pensions and retirement. 95.33 (b) Actuarial valuations,or experience studies prepared by 95.34 an approved actuary retained by a retirement fund or plan must 95.35 be submitted to the legislative commission on pensions and 95.36 retirement within ten days of the submission of the document to 96.1 the retirement fund or plan. 96.2 Subd.718. [ESTABLISHMENT OF ACTUARIAL ASSUMPTIONS.] (a) 96.3 The actuarial assumptions used for the preparation of actuarial 96.4 valuations under this section that are other than those set 96.5 forth in this section may be changed only with the approval of 96.6 the legislative commission on pensions and retirement. 96.7 (b) A change in the applicable actuarial assumptions may be 96.8 proposed by the governing board of the applicable pension fund 96.9 or relief association, by the actuary retained by the 96.10 legislative commission on pensions and retirement, by the 96.11 actuarial advisor to a pension fund governed by chapter 352, 96.12 353, 354, or 354A, or by the actuary retained by a local police 96.13 or firefighters relief association governed by sections 69.77 or 96.14 69.771 to 69.776, if one is retained. 96.15 Sec. 8. Minnesota Statutes 2000, section 356.216, is 96.16 amended to read: 96.17 356.216 [CONTENTS OF ACTUARIAL VALUATIONS FOR LOCAL POLICE 96.18 AND FIRE FUNDS.] 96.19 (a) The provisions of section 356.215governingthat govern 96.20 the contents of actuarial valuationsshallmust apply to any 96.21 local police or fire pension fund or relief association required 96.22 to make an actuarial report under this section, except as 96.23 follows: 96.24 (1) in calculating normal cost and other requirements, if 96.25 required to be expressed as a level percentage of covered 96.26 payroll, the salaries used in computing covered payrollshall96.27 must be the maximum rate of salaryfromon which retirement and 96.28 survivorship credits and amounts of benefits are determined and 96.29 from which any member contributions are calculated and deducted; 96.30 (2) in lieu of the amortization date specified in section 96.31 356.215, subdivision4g11, the appropriate amortization target 96.32 date specified in section 69.77, subdivision 2b, or 69.773, 96.33 subdivision 4, clause (c),shallmust be used in calculating any 96.34 required amortization contribution; 96.35 (3) in addition to the tabulation of active members and 96.36 annuitants provided for in section 356.215, subdivision4i13, 97.1 the member contributions for active members for the calendar 97.2 year and the prospective annual retirement annuities under the 97.3 benefit plan for active membersshallmust be reported; 97.4 (4) actuarial valuations requiredpursuant tounder section 97.5 69.773, subdivision 2,shallmust be made at least every four 97.6 years and actuarial valuations requiredpursuant tounder 97.7 section 69.77 shall be made annually;and97.8 (5) the actuarial balance sheet showing accrued assets 97.9 valued at market value if the actuarial valuation is required to 97.10 be prepared at least every four years or valued as current 97.11 assets under section 356.215, subdivision 1, clause (6), or 97.12 paragraph (b), whichever applies, if the actuarial valuation is 97.13 required to be prepared annually, actuarial accrued liabilities, 97.14 and the unfunded actuarial accrued liabilityshallmust include 97.15 the following required reserves: 97.16(a)(i) For active members 97.17 1. Retirement benefits 97.18 2. Disability benefits 97.19 3. Refund liability due to death or withdrawal 97.20 4. Survivors' benefits 97.21(b)(ii) For deferred annuitants' benefits 97.22(c)(iii) For former members without vested rights 97.23(d)(iv) For annuitants 97.24 1. Retirement annuities 97.25 2. Disability annuities 97.26 3. Surviving spouses' annuities 97.27 4. Surviving children's annuities 97.28 In addition to those required reserves, separate items 97.29shallmust be shown for additional benefits, if any, which may 97.30 not be appropriately included in the reserves listed above.; and 97.31 (6) actuarial valuationsshall beare due by the first day 97.32 of the seventh month after the end of the fiscal year which the 97.33 actuarial valuation covers. 97.34 (b) For a relief association in a city of the first class 97.35 with a population of more than 300,000, the following provisions 97.36 additionally apply: 98.1 (1) in calculating the actuarial balance sheet, unfunded 98.2 actuarial accrued liability, and amortization contribution of 98.3 the relief association, "current assets" means the value of all 98.4 assets at cost, including realized capital gains and losses, 98.5 plus or minus, whichever applies, the average value of total 98.6 unrealized capital gains or losses for the most recent 98.7 three-year period ending with the end of the plan year 98.8 immediately preceding the actuarial valuation report 98.9 transmission date; and 98.10 (2) in calculating the applicable portions of the actuarial 98.11 valuation, an annual preretirement interest assumption of six 98.12 percent, an annual postretirement interest assumption of six 98.13 percent, and an annual salary increase assumption of four 98.14 percent must be used. 98.15 Sec. 9. Minnesota Statutes 2000, section 356.217, is 98.16 amended to read: 98.17 356.217 [MODIFICATIONS IN ACTUARIAL SERVICES.] 98.18 (a) The cost of any requested benefit projections prepared 98.19 by the commission-retained actuary relating to the Minnesota 98.20 postretirement investment fundforat the request of the state 98.21 board of investment is payable by the state board of investment. 98.22 (b) Actuarial valuations under section 356.215, for July 1, 98.23 1991, and thereafter, are not required to have an individual 98.24 commentary section. The commentary section, if omitted from the 98.25 individual plan actuarialvaluationvaluations, must be included 98.26 in an appropriate generalized format as part of the report to 98.27 the legislature under section 3.85, subdivision 11. 98.28 (c) Actuarial valuations under section 356.215, for July 1, 98.29 1991, and thereafter, are not required to contain separate 98.30 actuarial valuation results for basic and coordinated programs 98.31 unless each program has a membership of at least ten percent of 98.32 the total membership of the fund. Actuarial valuations under 98.33 section 356.215, for July 1, 1991, and thereafter, are not 98.34 required to contain cash flow forecasts. 98.35 (d) Actuarial valuations of the public employees police and 98.36 fire fund local consolidation accounts for July 1, 1991, and 99.1 thereafter, are not required to contain separate tabulations or 99.2 summaries of active member, service retirement, disability 99.3 retirement, and survivor data for each local consolidation 99.4 account. 99.5 (e) The commission-retained actuary is: 99.6 (1) required to publish experience findings for those 99.7 retirement plans for which experience findings are required only 99.8 on a quadrennial basis for the four-year period ending June 30, 99.9 1992, and every four years thereafter; 99.10 (2) not required to prepare a separate experience analysis 99.11 or publish separate experience findings for basic and 99.12 coordinated programs if separate actuarial valuation results for 99.13 the programs are not required; and 99.14 (3) not required to calculate investment rate of return 99.15 experience results on any basis other than current asset value 99.16 as defined in section 356.215, subdivision 1, clause (6). 99.17 Sec. 10. Minnesota Statutes 2000, section 356.219, is 99.18 amended to read: 99.19 356.219 [DISCLOSURE OF PUBLIC PENSION PLAN INVESTMENT 99.20 PORTFOLIO AND PERFORMANCE INFORMATION.] 99.21 Subdivision 1. [REPORT REQUIRED.] (a) Except as indicated 99.22 in subdivision 4, the state board of investment, on behalf of 99.23 the public pension funds and programs for which it is the 99.24 investment authority, and any Minnesota public pension plan that 99.25 is not fully invested through the state board of investment, 99.26 including a local police or firefighters' relief association 99.27 governed by sections 69.77 or 69.771 to 69.775, shall report the 99.28 information specified in subdivision 3 to the state auditor. 99.29 The state auditor may prescribe a form or forms for the purposes 99.30 of the reporting requirements contained in this section. 99.31 (b) A local police or firefighters' relief association 99.32 governed by section 69.77 or sections 69.771 to 69.775 is fully 99.33 invested during a given calendar year for purposes of this 99.34 section if all assets of the applicable pension plan beyond 99.35 sufficient cash equivalent investments to cover six months 99.36 expected expenses are invested under section 11A.17. The board 100.1 of any fully invested public pension plan remains responsible 100.2 for submitting investment policy statements and subsequent 100.3 revisions as required by subdivision 3, paragraph (a). 100.4 (c) For purposes of this section, the state board of 100.5 investment is considered to be the investment authority for any 100.6 Minnesota public pension fund required to be invested by the 100.7 state board of investment under section 11A.23, or for any 100.8 Minnesota public pension fund authorized to invest in the 100.9 supplemental investment fund under section 11A.17 and which is 100.10 fully invested by the state board of investment. 100.11 Subd. 2. [ASSET CLASS DEFINITION.] (a) For purposes of 100.12 this section, "asset class" means any of the following asset 100.13 groupings as authorized in applicable law, bylaws, or articles 100.14 of incorporation: 100.15 (1) cash and any cash equivalent investments with 100.16 maturities of one year or less when issued; 100.17 (2) debt securities with maturities greater than one year 100.18 when issued, including but not limited to mortgage participation 100.19 certificates and pools, asset backed securities, guaranteed 100.20 investment contracts, and authorized government and corporate 100.21 obligations of corporations organized under laws of the United 100.22 States or any state, or the Dominion of Canada or its provinces; 100.23 (3) stocks or convertible issues of any corporation 100.24 organized under laws of the United States or any state, or the 100.25 Dominion of Canada or its provinces, or any corporation listed 100.26 on the New York Stock Exchange or the American Stock Exchange; 100.27 (4) international stocks or convertible issues; 100.28 (5) international debt securities; and 100.29 (6) real estate and venture capital. 100.30 (b) If the pension plan is investing under section 69.77, 100.31 subdivision 2g, section 69.775, or any other applicable law, in 100.32 open-end investment companies registered under the federal 100.33 Investment Company Act of 1940, or in the Minnesota supplemental 100.34 investment fund under section 11A.17, this investment must be 100.35 included under an asset class indicated in paragraph (a), 100.36 clauses (1) through (6), as appropriate. If the investment 101.1 vehicle includes underlying securities from more than one asset 101.2 class as indicated by paragraph (a), clauses (1) through (6), 101.3 the investment may be treated as a separate asset class. 101.4 Subd. 3. [CONTENT OF REPORTS.] (a) The report required by 101.5 subdivision 1 must include a written statement of the investment 101.6 policy in effect on June 30, 1997, if that statement has not 101.7 been previously submitted. Following that date, subsequent 101.8 reports must include investment policy changes and the effective 101.9 date of each policy change rather than a complete statement of 101.10 investment policy, unless the state auditor requests submission 101.11 of a complete current statement. The report must also include 101.12 the information required by the following paragraphs, as 101.13 applicable. 101.14 (b) If a public pension plan has a total market value of 101.15 $10,000,000 or more as of the beginning of the calendar year, 101.16 the report required by subdivision 1 must include the market 101.17 value of the total portfolio and the market value of each 101.18 investment account, investment portfolio, or asset class 101.19 included in the pension fund as of the beginning of the calendar 101.20 year and for each month, and the amount and date of each 101.21 injection and withdrawal to the total portfolio and to each 101.22 investment account, investment portfolio, or asset class. If a 101.23 public pension plan once files a report under this paragraph, it 101.24 must continue reporting under this paragraph for any subsequent 101.25 year in which the public pension plan is not fully invested as 101.26 specified in subdivision 1, paragraph (b), even if asset values 101.27 drop below $10,000,000 in market value inathat subsequent year. 101.28 (c) For public pension plans to which paragraph (b) 101.29 applies, the report required by subdivision 1 must also include 101.30 a calculation of the total time-weighted rate of return 101.31 available from index-matching investments assuming the asset 101.32 class performance targets and target asset mix indicated in the 101.33 written statement of investment policy. The provided 101.34 information must include a description of indices used in the 101.35 analyses and an explanation of why those indices are 101.36 appropriate. This paragraph does not apply to any fully 102.1 invested plan, as defined by subdivision 1, paragraph (b). 102.2 Reporting by the state board of investment under this paragraph 102.3 is limited to information on the Minnesota public pension plans 102.4 required to be invested by the state board of investment under 102.5 section 11A.23. 102.6 (d) If a public pension plan has a total market value of 102.7 less than $10,000,000 as of the beginning of the calendar year 102.8 and was never required to file under paragraph (b), the report 102.9 required by subdivision 1 must include the amount and date of 102.10 each total portfolio injection and withdrawal. In addition, the 102.11 report must include the market value of the total portfolio as 102.12 of the beginning of the calendar year and for each quarter. 102.13 (e) Any public pension plan reporting under paragraph (b) 102.14 or (d) may include computed time-weighted rates of return with 102.15 the report, in addition to all other required information, as 102.16 applicable. If these returns are supplied, the individual who 102.17 computed the returns must certify that the returns are net of 102.18 all costs and fees, including investment management fees, and 102.19 that the procedures used to compute the returns are consistent 102.20 with bank administration institute studies of investment 102.21 performance measurement and association of investment management 102.22 and research presentation standards. 102.23 (f) For public pension plans reporting under paragraph (d), 102.24 the public pension plan must retain supporting information 102.25 specifying the date and amount of each injection and withdrawal 102.26 to each investment account and investment portfolio. The public 102.27 pension plan must also retain the market value of each 102.28 investment account and investment portfolio at the beginning of 102.29 the calendar year and for each quarter. Information that is 102.30 required to be collected and retained for any given year or 102.31 years under this paragraph must be submitted to the office of 102.32 the state auditor if the office of the state auditor requests in 102.33 writing that the information be submitted by a public pension 102.34 plan or plans, or be submitted by the state board of investment 102.35 for any plan or plans for which the state board of investment is 102.36 the investment authority under this section. If the state 103.1 auditor requests information under this subdivision, and the 103.2 public plan fails to comply, the pension planwill beis subject 103.3 to penalties under subdivision 5, unless penalties are waived by 103.4 the state auditor under that subdivision. 103.5 Subd. 4. [ALTERNATIVE REPORTING; CERTAIN PLANS.] In lieu 103.6 of requirements in subdivision 3, the applicable administration 103.7 for the individual retirement account plans under chapters 354B 103.8 and 354D and for the University of Minnesota faculty retirement 103.9 plan shall submit computed time-weighted rates of return to the 103.10 office of the state auditor. These time-weighted rates of 103.11 return must cover the most recent complete calendar year, and 103.12 must be computed separately for each investment option available 103.13 to plan members. To the extent feasible, the returns must be 103.14 computed net of all investment costs, fees, and charges, so that 103.15 the computed return reflects the net time-weighted return 103.16 available to the investor. If this is not practical, the 103.17 existence of any remaining investment cost, fee, or charge which 103.18 could further lower the net return must be disclosed. The 103.19 procedures used to compute the returns must be consistent with 103.20 bank administration institute studies of investment performance 103.21 measurement and association of investment management and 103.22 research presentation standards, or, if applicable, securities 103.23 exchange commission requirements. The individual who computes 103.24 the returns must certify that the supplied returns comply with 103.25 this subdivision. The applicable plan administrator must also 103.26 submit, with the return information, the total amounts invested 103.27 by the plan members, in aggregate, in each investment option as 103.28 of the last day of the calendar year. 103.29 Subd. 5. [PENALTY FOR NONCOMPLIANCE.] Failure to comply 103.30 with the reporting requirements of this sectionshallmust 103.31 result in a withholding of all state aid or state appropriation 103.32 to which the pension plan may otherwise be directly or 103.33 indirectly entitled until the pension plan has complied with the 103.34 reporting requirements. The state auditor shall instruct the 103.35 commissioners of revenue and finance to withhold any state aid 103.36 or state appropriation from any pension plan that fails to 104.1 comply with the reporting requirements contained in this 104.2 section, until the pension plan has complied with the reporting 104.3 requirements. The state auditor may waive the withholding of 104.4 state aid or state appropriations if the state auditor 104.5 determines in writing that compliance would create an excessive 104.6 hardship for the pension plan. 104.7 Subd. 6. [INVESTMENT DISCLOSURE REPORT.] (a) The state 104.8 auditor shall prepare an annual report to the legislature on the 104.9 investment performance of the various public pension plans 104.10 subject to this section. The content of the report is specified 104.11 in paragraphs (b) to (e). 104.12 (b) For each public pension plan reporting under 104.13 subdivision 3, paragraph (b), the state auditor shall compute 104.14 and report total portfolio and asset class time-weighted rates 104.15 of return, net of all investment-related costs and fees. 104.16 (c) For each public pension plan reporting under 104.17 subdivision 3, paragraph (d), the state auditor shall compute 104.18 and report total portfolio time-weighted rates of return, net of 104.19 all costs and fees. If the state auditor has requested data for 104.20 a plan under subdivision 3, paragraph (f), the state auditor may 104.21 also compute and report asset class time-weighted rates of 104.22 return, net of all costs and fees. 104.23 (d) The report by the state auditor must include the 104.24 information submitted by the pension plans under subdivision 3, 104.25 paragraph (c), or a synopsis of that information. 104.26 (e) The report by the state auditor may also include a 104.27 presentation of multiyear performance, information collected 104.28 under subdivision 4, and any other information or analysis 104.29 deemed appropriate by the state auditor. 104.30 Subd. 7. [EXPENSE OF REPORT.] All administrative expenses 104.31 incurred relating to the investment report by the state auditor 104.32 described in subdivision 6 must be borne by the office of the 104.33 state auditor and may not be charged back to the entities 104.34 described in subdivisions 1 or 4. 104.35 Subd. 8. [TIMING OF REPORTS.] (a) For salaried firefighter 104.36 relief associations, police relief associations, and volunteer 105.1 firefighter relief associations, the information required under 105.2 this section must be submitted by the due date for reports 105.3 required under section 69.051, subdivision 1 or 1a, as 105.4 applicable. If a relief association satisfies the definition of 105.5 a fully invested plan under subdivision 1, paragraph (b), for 105.6 the calendar year covered by the report required under section 105.7 69.051, subdivision 1 or 1a, as applicable, the chief 105.8 administrative officer of the covered pension plan shall certify 105.9 that compliance on a form prescribed by the state auditor. The 105.10 state auditor shall transmit annually to the state board of 105.11 investment a list or lists of covered pension plans which 105.12 submitted certifications,in order to facilitate reporting by 105.13 the state board of investment under paragraph (c) of this 105.14 subdivision. 105.15 (b) For the Minneapolis teachers retirement fund 105.16 association, the St. Paul teachers retirement fund association, 105.17 the Duluth teachers retirement fund association, the Minneapolis 105.18 employees retirement fund, the University of Minnesota faculty 105.19 supplemental retirement plan, and the applicable administrators 105.20 for the University of Minnesota faculty retirement plan and the 105.21 individual retirement account plans under chapters 354B and 105.22 354D, the information required under this section must be 105.23 submitted to the state auditor by June 1 of each year. 105.24 (c) The state board of investment, on behalf of pension 105.25 funds specified in subdivision 1, paragraph (c), must report 105.26 information required under this section by September 1 of each 105.27 year. 105.28 Sec. 11. Minnesota Statutes 2000, section 356.22, is 105.29 amended to read: 105.30 356.22 [INTERPRETATION.] 105.31 Subdivision 1. [PROVISION OF ADDITIONAL VALUATIONS.] No 105.32 provision in sections 356.20 to 356.23shallmay be construedto105.33 in any way to limit any of the enumerated pension and retirement 105.34 funds from furnishing additional actuarial valuations or 105.35 experience studies, or additional data and actuarial 105.36 calculations, as may be requested by the legislature or any 106.1 standing committee or by the legislative commission on pensions 106.2 and retirement. 106.3 Subd. 2. [ACCELERATED AMORTIZATION.] No provision in 106.4 sections 356.20 to 356.23shallmay be construed to preclude any 106.5 public pension and retirement fund enumerated in section 356.20, 106.6 subdivision 2, from requesting, or the legislature from 106.7 providing for, the amortization of any unfunded actuarial 106.8 accrued liability in a shorter period of time than by the 106.9 established date for full funding as determinedpursuant to106.10 under section 356.215, subdivision4g11. 106.11 Subd. 3. [ADDITIONAL REQUIRED VALUATIONS.] The legislature 106.12 or any committee or commissionthereof now in existence or106.13hereafter createdwhich has assigned to it the subject of public 106.14 pensions or public retirement plans may require actuarial 106.15 valuations and experience studies in conformity with the 106.16 provisions of sections 356.20 to 356.23 from any public pension 106.17 and retirement plan or fund, whether enumerated in sections 106.18 356.20 to 356.23 or otherwise. 106.19 Sec. 12. Minnesota Statutes 2000, section 356.23, is 106.20 amended to read: 106.21 356.23 [SUPPLEMENTAL VALUATIONS; ALTERNATIVE REPORTS AND 106.22 VALUATIONS.] 106.23 Subdivision 1. [SUPPLEMENTAL ACTUARIAL VALUATIONS.] Any 106.24 supplemental actuarial valuations prepared on behalf of any 106.25 governing or managing board of any pension and retirement fund 106.26 enumerated in section 356.20, subdivision 2, by an approved 106.27 actuary,shallmust be prepared in accordance with the 106.28 applicable provisions of sections 356.20 to 356.23 and with the 106.29 standards adopted by the legislative commission on pensions and 106.30 retirement. Any pension and retirement fund which prepares an 106.31 alternative actuarial valuation under subdivision 2shallalso 106.32 must have a supplemental actuarial valuation prepared. 106.33 Subd. 2. [ALTERNATIVE REPORTS AND VALUATIONS.] In addition 106.34 to the financial reports and actuarial valuations required by 106.35 sections 356.20 to 356.23, the governing or managing board of 106.36 any fund concerned may submit alternative reports and actuarial 107.1 valuations for distribution to the legislature, any of its 107.2 committees, or the legislative commission on pensions and 107.3 retirement on a different basis or on different assumptions than 107.4 are specified in sections 356.20 to 356.23. The assumptions and 107.5 basis of any alternative reports and valuationsshallmust be 107.6 clearly stated in the document. 107.7 LIMITATIONS ON SUPPLEMENTAL AND 107.8 LOCAL RETIREMENT PLANS 107.9 Sec. 13. Minnesota Statutes 2001 Supplement, section 107.10 356.24, subdivision 1, is amended to read: 107.11 Subdivision 1. [RESTRICTION; EXCEPTIONS.] It is unlawful 107.12 for a school district or other governmental subdivision or state 107.13 agency to levy taxes for, or to contribute public funds to a 107.14 supplemental pension or deferred compensation plan that is 107.15 established, maintained, and operated in addition to a primary 107.16 pension program for the benefit of the governmental subdivision 107.17 employees other than: 107.18 (1) to a supplemental pension plan that was established, 107.19 maintained, and operated before May 6, 1971; 107.20 (2) to a plan that provides solely for group health, 107.21 hospital, disability, or death benefits; 107.22 (3) to the individual retirement account plan established 107.23 by chapter 354B; 107.24 (4) to a plan that provides solely for severance pay under 107.25 section 465.72 to a retiring or terminating employee; 107.26 (5) for employees other than personnel employed by the 107.27 board of trustees of the Minnesota state colleges and 107.28 universities and covered under the higher education supplemental 107.29 retirement plan under chapter 354C, if the supplemental plan 107.30 coverage is provided for in a personnel policy of the public 107.31 employer or in the collective bargaining agreement between the 107.32 public employer and the exclusive representative of public 107.33 employees in an appropriate unit, in an amount matching employee 107.34 contributions on a dollar for dollar basis, but not to exceed an 107.35 employer contribution of $2,000 a year per employee; 107.36 (i) to the state of Minnesota deferred compensation plan 108.1 under section 352.96; or 108.2 (ii) in payment of the applicable portion of the 108.3 contribution made to any investment eligible under section 108.4 403(b) of the Internal Revenue Code, if the employing unit has 108.5 complied with any applicable pension plan provisions of the 108.6 Internal Revenue Code with respect to the tax-sheltered annuity 108.7 program during the preceding calendar year; 108.8 (6) for personnel employed by the board of trustees of the 108.9 Minnesota state colleges and universities and not covered by 108.10 clause (5), to the supplemental retirement plan under chapter 108.11 354C, if the supplemental plan coverage is provided for in a 108.12 personnel policy or in the collective bargaining agreement of 108.13 the public employer with the exclusive representative of the 108.14 covered employees in an appropriate unit, in an amount matching 108.15 employee contributions on a dollar for dollar basis, but not to 108.16 exceed an employer contribution of $2,700 a year for each 108.17 employee; 108.18 (7) to a supplemental plan or to a governmental trust to 108.19 save for postretirement health care expenses qualified for 108.20 tax-preferred treatment under the Internal Revenue Code, if the 108.21 supplemental plan coverage is provided for in a personnel policy 108.22 or in the collective bargaining agreement of a public employer 108.23 with the exclusive representative of the covered employees in an 108.24 appropriate unit;or108.25 (8) to the laborer's national industrial pension fund for 108.26 the employees of a governmental subdivision who are covered by a 108.27 collective bargaining agreement that provides for coverage by 108.28 that fund and that sets forth a fund contribution rate, but not 108.29 to exceed an employer contribution of $2,000 per year per 108.30 employee; 108.31 (9) to the plumbers' and pipefitters' national pension fund 108.32 for the employees of a governmental subdivision who are covered 108.33 by a collective bargaining agreement that provides for coverage 108.34 by that fund and that sets forth a fund contribution rate, but 108.35 not to exceed an employer contribution of $2,000 per year per 108.36 employee; 109.1 (10) to the international union of operating engineers 109.2 pension fund for the employees of a governmental subdivision who 109.3 are covered by a collective bargaining agreement that provides 109.4 for coverage by that fund and that sets forth a fund 109.5 contribution rate, but not to exceed an employer contribution of 109.6 $2,000 per year per employee; or 109.7 (11) to a supplemental plan organized and operated under 109.8 the federal Internal Revenue Code, as amended, that is wholly 109.9 and solely funded by the employee's accumulated sick leave, 109.10 accumulated vacation leave, and accumulated severance pay. 109.11 Sec. 14. Minnesota Statutes 2000, section 356.24, 109.12 subdivision 1b, is amended to read: 109.13 Subd. 1b. [VENDOR RESTRICTIONS.] A personnel policy for 109.14 unrepresented employees, or a collective bargaining agreement 109.15 for represented employees, or a school board for school district 109.16 employees may establish limits on the number of vendors of plans 109.17 covered by the exceptions set forth in subdivision 1 that it 109.18 will utilize and conditions under whichthethose vendors may 109.19 contact employees both during working hours and after working 109.20 hours. 109.21 Sec. 15. Minnesota Statutes 2000, section 356.24, 109.22 subdivision 1c, is amended to read: 109.23 Subd. 1c. [STATE BOARD OF INVESTMENT REVIEW.] (a) Any 109.24 insurance company, mutual fund company, or similar company 109.25 providing investments eligible under section 403(b) of the 109.26 Internal Revenue Code and eligible to receive employer 109.27 contributions under this section may request the state board of 109.28 investment, in conjunction with the department of commerce, to 109.29 review the financial standing of the company, the 109.30 competitiveness of its investment options and returns, and the 109.31 level of all charges and fees impacting those returns. 109.32 (b) The state board of investment may establish a fee for 109.33 each review. The state board of investment must maintain and 109.34 have available a list of all reviewed companies. 109.35 (c) In reviewing companies under this section, the state 109.36 board of investment must not be considered to be acting as a 110.1 fiduciary or to be engaged in a fiduciary activity under chapter 110.2 356A or common law. 110.3 Sec. 16. Minnesota Statutes 2000, section 356.24, 110.4 subdivision 2, is amended to read: 110.5 Subd. 2. [LIMIT ON CERTAIN CONTRIBUTIONS OR BENEFIT 110.6 CHANGES.] No change in benefits or employer contributions in a 110.7 supplemental pension plan to which this section applies that 110.8 occurs after May 6, 1971, is effective without prior legislative 110.9 authorization. 110.10 Sec. 17. Minnesota Statutes 2000, section 356.245, is 110.11 amended to read: 110.12 356.245 [LOCAL ELECTED OFFICIALS.] 110.13 An elected official who is covered by section 353.01, 110.14 subdivision 2a, is eligible to participate in the state of 110.15 Minnesota deferred compensation plan under section 356.24.A110.16 The applicable local governmental unit may make the matching 110.17 employer contributions authorized by that section on the part of 110.18 a participating elected official. 110.19 Sec. 18. Minnesota Statutes 2000, section 356.25, is 110.20 amended to read: 110.21 356.25 [LOCAL GOVERNMENTAL PENSION FUND PROHIBITIONS; 110.22 EXCLUSIONS.] 110.23 Notwithstanding any other provision of law or charter to 110.24 the contrary, no city, county, public agency or instrumentality, 110.25 or other political subdivisionshallmay, after August 1, 1975, 110.26 establish for any of its employeesanya local pension plan or 110.27 fund financed in whole or in part from public funds, other than 110.28 a volunteer firefighter's relief association that is established 110.29pursuant tounder chapter 424A and is governed by sections 110.30 69.771 to 69.776. 110.31 PUBLIC RETIREMENT PLAN PORTABILITY MECHANISMS 110.32 Sec. 19. Minnesota Statutes 2000, section 356.30, is 110.33 amended to read: 110.34 356.30 [COMBINED SERVICE ANNUITY.] 110.35 Subdivision 1. [ELIGIBILITY; COMPUTATION OF ANNUITY.] (a) 110.36 Notwithstanding any provisions of the laws governing the 111.1 retirement plans enumerated in subdivision 3, a person who has 111.2 met the qualifications of paragraph (b) may elect to receive a 111.3 retirement annuity from each enumerated retirement plan in which 111.4 the person has at least one-half year of allowable service, 111.5 based on the allowable service in each plan, subject to the 111.6 provisions of paragraph (c). 111.7 (b) A person may receive, upon retirement, a retirement 111.8 annuity from each enumerated retirement plan in which the person 111.9 has at least one-half year of allowable service, and 111.10 augmentation of a deferred annuity calculated under the laws 111.11 governing each public pension plan or fund named in subdivision 111.12 3, from the date the person terminated all public service if: 111.13 (1) the person has allowable service totaling an amount 111.14 that allows the person to receive an annuity in any two or more 111.15 of the enumerated plans; and 111.16 (2) the person has not begun to receive an annuity from any 111.17 enumerated plan or the person has made application for benefits 111.18 from each applicable plan and the effective dates of the 111.19 retirement annuity with each plan under which the person chooses 111.20 to receive an annuity are within a one-year period. 111.21 (c) The retirement annuity from each plan must be based 111.22 upon the allowable service, accrual rates, and average salary in 111.23 the applicable plan except as further specified or modified in 111.24 the following clauses: 111.25 (1) the laws governing annuities must be the law in effect 111.26 on the date of termination from the last period of public 111.27 service under a covered retirement plan with which the person 111.28 earned a minimum of one-half year of allowable service credit 111.29 during that employment; 111.30 (2) the "average salary" on which the annuity from each 111.31 covered plan in which the employee has credit in a formula plan 111.32shallmust be based on the employee's highest five successive 111.33 years of covered salary during the entire service in covered 111.34 plans; 111.35 (3) accrual rates to be used by each plan must be those 111.36 percentages prescribed by each plan's formula as continued for 112.1 the respective years of allowable service from one plan to the 112.2 next, recognizing all previous allowable service with the other 112.3 covered plans; 112.4 (4) allowable service in all the plans must be combined in 112.5 determining eligibility for and the application of each plan's 112.6 provisions in respect to reduction in the annuity amount for 112.7 retirement prior to normal retirement age; and 112.8 (5) the annuity amount payable for any allowable service 112.9 under a nonformula plan of a covered plan must not be affected, 112.10 but such service and covered salary must be used in the above 112.11 calculation. 112.12 (d) This section does not apply to any person whose final 112.13 termination from the last public service under a covered planis112.14prior towas before May 1, 1975. 112.15 (e) For the purpose of computing annuities under this 112.16 section, the accrual rates used by any covered plan, except the 112.17 public employees police and fire plan, the judges' retirement 112.18 fund, and the state patrol retirement plan, must not exceed the 112.19 percent specified in section356.19356.315, subdivision 4, per 112.20 year of service for any year of service or fraction thereof. 112.21 The formula percentage used by the judges' retirement fund must 112.22 not exceed thepercentpercentage rate specified in section 112.23356.19356.315, subdivision 8, per year of service for any year 112.24 of service or fraction thereof. The accrual rate used by the 112.25 public employees police and fire plan and the state patrol 112.26 retirement plan must not exceed thepercentpercentage rate 112.27 specified in section356.19356.315, subdivision 6, per year of 112.28 service for any year of service or fraction thereof. The 112.29 accrual rate or rates used by the legislators retirement plan 112.30 and the elective state officers retirement plan must not exceed 112.31 2.5 percent, but this limit does not apply to the adjustment 112.32 provided under section 3A.02, subdivision 1, paragraph (c), or 112.33 352C.031, paragraph (b). 112.34 (f) Any period of time for which a person has credit in 112.35 more than one of the covered plans must be used only once for 112.36 the purpose of determining total allowable service. 113.1 (g) If the period of duplicated service credit is more than 113.2 one-half year, or the person has credit for more than one-half 113.3 year, with each of the plans, each plan must apply its formula 113.4 to a prorated service credit for the period of duplicated 113.5 service based on a fraction of the salary on which deductions 113.6 were paid to that fund for the period divided by the total 113.7 salary on which deductions were paid to all plans for the period. 113.8 (h) If the period of duplicated service credit is less than 113.9 one-half year, or when added to other service credit with that 113.10 plan is less than one-half year, the service credit must be 113.11 ignored and a refund of contributions made to the person in 113.12 accord with that plan's refund provisions. 113.13 Subd. 2. [REPAYMENT OF REFUNDS.] A person who has service 113.14 credit in one of thefundsretirement plans enumerated in 113.15 subdivision 3 and who is employed or was formerly employed in a 113.16 position covered by one of thesefundscovered plans but also 113.17 has received a refund from any other of thesefundscovered 113.18 plans, may repay the refund to the respectivefundplan under 113.19 terms and conditions that are consistent with the laws governing 113.20 the otherfundplan, except that the person need not be a 113.21 currently contributing member of thefundplan to which the 113.22 refund is repaid at the time the repayment is made. Unless 113.23 otherwise provided by statute, the repayment of a refund under 113.24 this subdivision may only be made within six months following 113.25 termination of employment from a position covered by one of the 113.26fundscovered plans enumerated in subdivision 3 or before the 113.27 date of retirement from the fund to which the refund is repaid, 113.28 whichever is earlier. 113.29 Subd. 2a. [PURCHASES OF PRIOR SERVICE.] If a purchase of 113.30 prior service is made under the provisions of Laws 1988, chapter 113.31 709, article 3, or any similar special or general law provision 113.32 which allows a purchase of service credit in any of thefunds113.33 retirement plans enumerated in subdivision 3, the amount of 113.34 required reserves calculated as prescribed in Laws 1988, chapter 113.35 709, article 3, must be paid to eachfundplan based on the 113.36 amount of benefit increase payable from thatfundplan as a 114.1 result of the purchase of prior service. 114.2 Subd. 3. [COVEREDFUNDSPLANS.] This section applies to 114.3 the following retirementfundsplans: 114.4 (1) the general state employees retirementfundplan of the 114.5 Minnesota state retirement system, establishedpursuant tounder 114.6 chapter 352; 114.7 (2) the correctional state employees retirementprogram114.8 plan of the Minnesota state retirement system, 114.9 establishedpursuant tounder chapter 352; 114.10 (3) the unclassified employees retirementplanprogram, 114.11 establishedpursuant tounder chapter 352D; 114.12 (4) the state patrol retirementfundplan, established 114.13pursuant tounder chapter 352B; 114.14 (5) the legislators retirement plan, establishedpursuant114.15tounder chapter 3A; 114.16 (6) the elective state officers' retirement plan, 114.17 establishedpursuant tounder chapter 352C; 114.18 (7) the general employees retirement plan of the public 114.19 employees retirement association, establishedpursuant tounder 114.20 chapter 353; 114.21 (8) the public employees police and firefundretirement 114.22 plan of the public employees retirement association, established 114.23pursuant tounder chapter 353; 114.24 (9)public employeesthe local government correctional 114.25 service retirement plan of the public employees retirement 114.26 association, establishedpursuant tounder chapter 353E; 114.27 (10) the teachers retirement association, established 114.28pursuant tounder chapter 354; 114.29 (11) the Minneapolis employees retirement fund, established 114.30pursuant tounder chapter 422A; 114.31 (12) the Minneapolis teachers retirement fund association, 114.32 establishedpursuant tounder chapter 354A; 114.33 (13) the St. Paul teachers retirement fund association, 114.34 establishedpursuant tounder chapter 354A; 114.35 (14) the Duluth teachers retirement fund association, 114.36 establishedpursuant tounder chapter 354A; and 115.1 (15) the judges' retirement fund, established by sections 115.2 490.121 to 490.132. 115.3 Sec. 20. Minnesota Statutes 2000, section 356.302, is 115.4 amended to read: 115.5 356.302 [DISABILITY BENEFIT WITH COMBINED SERVICE.] 115.6 Subdivision 1. [DEFINITIONS.] (a) The terms used in this 115.7 section are defined in this subdivision. 115.8 (b) "Average salary" means the highest average of covered 115.9 salary for the appropriate period of credited service that is 115.10 required for the calculation of a disability benefit by the 115.11 covered retirement plan and that is drawn from any period of 115.12 credited service and successive years of covered salary in a 115.13 covered retirement plan. 115.14 (c) "Covered retirement plan" or "plan" means a retirement 115.15 plan listed in subdivision 7. 115.16 (d) "Duty-related" means a disabling illness or injury that 115.17 occurred while the person was actively engaged in employment 115.18 duties or that arose out of the person's active employment 115.19 duties. 115.20 (e) "General employee retirement plan" means a covered 115.21 retirement plan listed in subdivision 7, clauses (1) to (8) and 115.22 (13). 115.23 (f) "Occupationally disabled" means the condition of having 115.24 a medically determinable physical or mental impairment that 115.25 makes a person unable to satisfactorily perform the minimum 115.26 requirements of the person's employment position or a 115.27 substantially similar employment position. 115.28 (g) "Public safety employee retirement plan" means a 115.29 covered retirement plan listed in subdivision 7, clauses (9) to 115.30(11)(12). 115.31 (h) "Totally and permanently disabled" means the condition 115.32 of having a medically determinable physical or mental impairment 115.33 that makes a person unable to engage in any substantial gainful 115.34 activity and that is expected to continue or has continued for a 115.35 period of at least one year or that is expected to result 115.36 directly in the person's death. 116.1 Subd. 2. [ENTITLEMENT.] Notwithstanding any provision of 116.2 law to the contrary governing any covered retirement plan, a 116.3 member of a covered retirement plan may receive a combined 116.4 service disability benefit from each covered retirement plan in 116.5 which the person has credit for at least one-half year of 116.6 allowable service if that person meets the applicable qualifying 116.7 conditions. Subdivision 3 applies to a member of a general 116.8 employee retirement plan. Subdivision 4 applies to a member of 116.9 a public safety employee retirement plan. Subdivision 5 applies 116.10 to a member of a covered retirement plan with both general 116.11 employee and public safety employee retirement plan service. 116.12 Subd. 3. [GENERAL EMPLOYEE PLAN ELIGIBILITY REQUIREMENTS.] 116.13 A disabled member of a covered retirement plan who has credit 116.14 for allowable service in a combination of general employee 116.15 retirement plans is entitled to a combined service disability 116.16 benefit if the member: 116.17 (1) is less than 65 years of age on the date of the 116.18 application for the disability benefit; 116.19 (2) has become totally and permanently disabled; 116.20 (3) has credit for allowable service in any combination of 116.21 general employee retirement plans totaling at least three years; 116.22 (4) has credit for at least one-half year of allowable 116.23 service with the current general employee retirement plan before 116.24 the commencement of the disability; 116.25 (5) has at least three continuous years of allowable 116.26 service credit by the general employee retirement plan or has at 116.27 least a total of three years of allowable service credit by a 116.28 combination of general employee retirement plans in a 72-month 116.29 period during which no interruption of allowable service credit 116.30 from a termination of employment exceeded 29 days; and 116.31 (6)iswas not receiving a retirement annuity or disability 116.32 benefit from any covered general employee retirement plan at the 116.33 time of the commencement of the disability. 116.34 Subd. 4. [PUBLIC SAFETY PLAN ELIGIBILITY REQUIREMENTS.] A 116.35 disabled member of a covered retirement plan who has credit for 116.36 allowable service in a combination of public safety employee 117.1 retirement plans is entitled to a combined service disability 117.2 benefit if the member: 117.3 (1) has become occupationally disabled; 117.4 (2) has credit for allowable service in any combination of 117.5 public safety employee retirement plans totaling at least one 117.6 year if the disability is duty-related or totaling at least 117.7 three years if the disability is not duty-related; 117.8 (3) has credit for at least one-half year of allowable 117.9 service with the current public safety employee retirement plan 117.10 before the commencement of the disability; and 117.11 (4)iswas not receiving a retirement annuity or disability 117.12 benefit from any covered public safety employee retirement plan 117.13 at the time of the commencement of the disability. 117.14 Subd. 5. [GENERAL AND PUBLIC SAFETY PLAN ELIGIBILITY 117.15 REQUIREMENTS.] A disabled member of a covered retirement plan 117.16 who has credit for allowable service in a combination of both a 117.17 public safety employee retirementplansplan and general 117.18 employee retirementplansplan must meet the qualifying 117.19 requirements in subdivisions 3 and 4 to receive a combined 117.20 service disability benefit from the applicable general employee 117.21 and public safety employee retirement plans, except that the 117.22 person need only be a member of a covered retirement plan at the 117.23 time of the commencement of the disability and that the minimum 117.24 allowable service requirements of subdivisions 3, clauses (3) 117.25 and (5), and 4, clauses (3) and (4), may be met in any 117.26 combination of covered retirement plans. 117.27 Subd. 6. [COMBINED SERVICE DISABILITY BENEFIT 117.28 COMPUTATION.] (a) The combined service disability benefit from 117.29 each covered retirement plan must be based on the allowable 117.30 service in each retirement plan, except as specified in 117.31 paragraphs (b) to (f). 117.32 (b) The disability benefit must be governed by the law in 117.33 effect for each covered retirement plan on the date of the 117.34 commencement of the member's most recent qualifying disability 117.35 as a member of a covered retirement plan. 117.36 (c) All plans must base the disability benefit on the same 118.1 average salary figure to the extent practicable. 118.2 (d) If the method of the covered retirement plan used to 118.3 compute a disability benefit varies based on the length of 118.4 allowable service credit, the benefit accrual formula 118.5 percentages used by the plan must recognize the allowable 118.6 service credit in the plan as a continuation of any previous 118.7 allowable service credit with other covered retirement plans. 118.8 (e) If the covered retirement plan is a defined benefit or 118.9 formula plan and the method used to compute a disability benefit 118.10 does not vary based on the length of allowable service credit, 118.11 the portion of the specified benefit amount from the plan must 118.12 bear the same proportion to the total specified benefit amount 118.13 as the allowable service credit in that plan bears to the total 118.14 allowable service credit in all covered retirement plans. If 118.15 the covered retirement plan is a defined contribution or 118.16 nonformula plan, the disability benefit amount for allowable 118.17 service under the plan is not affected, but the service and the 118.18 covered salary under the plan must be used as applicable in 118.19 calculations by other covered retirement plans. 118.20 (f) A period for which a person has allowable service 118.21 credit in more than one covered retirement plan must be used 118.22 only once in determining the total allowable service credit for 118.23 calculating the combined service disability benefit, with any 118.24 period of duplicated service credit handledunderas provided in 118.25 section 356.30, subdivision 1,clause (3), items (i) and118.26(j)paragraphs (g) and (h). 118.27 (g) If a person is entitled to a minimum benefit payable 118.28 from one of the public pension plansnamedenumerated in section 118.29 356.30, subdivision 3, the person may receive additional credit 118.30 for only those years of service in another covered pension plan 118.31 that, when added to the years of service in the pension plan 118.32 that is paying the minimum benefit, exceed the years of service 118.33 on which the minimum benefit is based. 118.34 (h) A partially employed recipient of a disability benefit 118.35 must have any current reemployment income plus the total 118.36 disabilitypaymentpayments from all planslistedenumerated in 119.1 subdivision 7 added together, and then compared to their final 119.2 salary rate as a public employee. If current income plus the 119.3 total disability payments exceed the final salary of the person 119.4 at the time of retirement, then disability benefit payments from 119.5 all the planswillmust be reduced on a prorated basis relative 119.6 to the years of service in each fund so that earnings plus 119.7 benefit payments do not exceedtheirthe final salary rate. 119.8 Subd. 7. [COVERED RETIREMENT PLANS.] This section applies 119.9 to the following retirement plans: 119.10 (1) the general state employees retirementfundplan of the 119.11 Minnesota state retirement system, established by chapter 352; 119.12 (2) the unclassified state employees retirementplan119.13 program of the Minnesota state retirement system, established by 119.14 chapter 352D; 119.15 (3) the general employees retirement plan of the public 119.16 employees retirement association, established by chapter 353; 119.17 (4) the teachers retirement association, established by 119.18 chapter 354; 119.19 (5) the Duluth teachers retirement fund association, 119.20 established by chapter 354A; 119.21 (6) the Minneapolis teachers retirement fund association, 119.22 established by chapter 354A; 119.23 (7) the St. Paul teachers retirement fund association, 119.24 established by chapter 354A; 119.25 (8) the Minneapolis employees retirement fund, established 119.26 by chapter 422A; 119.27 (9) the state correctional employees retirement plan of the 119.28 Minnesota state retirement system, established by chapter 352; 119.29 (10) the state patrol retirementfundplan, established by 119.30 chapter 352B; 119.31 (11) the public employees police and firefundplan of the 119.32 public employees retirement association, established by chapter 119.33 353; 119.34 (12)public employeesthe local government correctional 119.35 service retirement plan of the public employees retirement 119.36 association, established by chapter 353E; and 120.1 (13) the judges' retirementfundplan, established by 120.2 sections 490.121 to 490.132. 120.3 Sec. 21. Minnesota Statutes 2000, section 356.303, is 120.4 amended to read: 120.5 356.303 [SURVIVOR BENEFIT WITH COMBINED SERVICE.] 120.6 Subdivision 1. [DEFINITIONS.] (a) The terms used in this 120.7 section are defined in this subdivision. 120.8 (b) "Average salary" means the highest average of covered 120.9 salary for the appropriate period of credited service that is 120.10 required for the calculation of a survivor annuity or a survivor 120.11 benefit, whichever applies, by the covered retirement plan and 120.12 that is drawn from any period of credited service and covered 120.13 salary in a covered retirement plan. 120.14 (c) "Covered retirement plan" or "plan" means a retirement 120.15 planlistedenumerated in subdivision 4. 120.16 (d) "Deceased member" means a person who on the date of 120.17 death was an active member of a covered retirement plan and who 120.18 has reached the minimum age, if any, that is required by the 120.19 covered retirement plan as part of qualifying for a survivor 120.20 annuity or survivor benefit. 120.21 (e) "Surviving child" means a child of a deceased member 120.22 (1) who is unmarried,; (2) who has not reached age 18, or, if a 120.23 full-time student, who has not reached a higher age as specified 120.24inby the applicable covered retirement plan,; and (3) if 120.25 specified by that plan, who was actually dependent on the 120.26 deceased member for a specified proportion of support before the 120.27 deceased member's death. "Surviving child" includes a natural 120.28 child, an adopted child, or a child of a deceased member who is 120.29 conceived during the member's lifetime and who is born after the 120.30 member's death. 120.31 (f) "Surviving spouse" means the legally married husband or 120.32 wife, whichever applies, of the deceased member who was residing 120.33 with the deceased member on the date of death and who, if 120.34 specified by the applicable covered retirement plan, had been 120.35 married to the deceased member for a specified period of time 120.36 before the death of the deceased member. 121.1 (g) "Survivor annuity" means the entitlement to a future 121.2 amount payable to a survivor as the remainder interest of an 121.3 optional annuity form implied by law as having been chosen by a 121.4 deceased member before the date of death and effective on the 121.5 date of death or provided automatically. 121.6 (h) "Survivor benefit" means an entitlement to a future 121.7 amount payable to a survivor that is not included in the 121.8 definition of a survivor annuity. 121.9 Subd. 2. [ENTITLEMENT; ELIGIBILITY.] Notwithstanding 121.10 any provision of law to the contrary governing a covered 121.11 retirement plan, a person who is the survivor of a deceased 121.12 member of a covered retirement plan may receive a combined 121.13 service survivor benefit from each covered retirement plan in 121.14 which the deceased member had credit for at least one-half year 121.15 of allowable service if the deceased member: 121.16 (1) had credit for sufficient allowable service in any 121.17 combination of covered retirement plans to meet any minimum 121.18 allowable service credit requirement of the covered retirement 121.19 fund for qualification for a survivor benefit or annuity; 121.20 (2) had credit for at least one-half year of allowable 121.21 service with the most recent covered retirement plan before the 121.22 date of death and was an active member of that covered 121.23 retirement plan on the date of death; and 121.24 (3) was not receiving a retirement annuity from any covered 121.25 retirement plan on the date of death. 121.26 Subd. 3. [COMBINED SERVICE SURVIVOR BENEFIT COMPUTATION.] 121.27 (a) The combined service survivor annuity or survivor benefit 121.28 from each covered retirement plan must be based on the allowable 121.29 service in each covered retirement plan, except as provided by 121.30 paragraphs (b) to (f). 121.31 (b) The survivor annuity or survivor benefit must be 121.32 governed by the law in effect for each covered retirement plan 121.33 on the date of the death of the deceased member. 121.34 (c) All plans must base the survivor annuity or survivor 121.35 benefit on the same average salary figure if the annuity or 121.36 benefit is salary related. 122.1 (d) If the method of the covered retirement plan used to 122.2 compute a survivor benefit or annuity varies based on the length 122.3 of allowable service credit, the benefit accrual formula 122.4 percentages used by the plan must recognize the allowable 122.5 service credit in the plan as a continuation of any previous 122.6 allowable service credit with other covered retirement plans. 122.7 (e) If the covered retirement plan is a defined benefit or 122.8 formula plan and the method used to compute a survivor benefit 122.9 or annuity does not vary based on the length of allowable 122.10 service credit, the portion of the specified benefit or annuity 122.11 amount from the covered retirement plan must bear the same 122.12 proportion to the total specified benefit or annuity amount as 122.13 the allowable service credit in that plan bears to the total 122.14 allowable service credit in all covered retirement plans. If 122.15 the covered retirement plan is a defined contribution or 122.16 nonformula plan, the survivor benefit amount for allowable 122.17 service under the plan is not affected, but the service and 122.18 covered salary under the plan must be used in calculations by 122.19 other covered retirement plans. 122.20 (f) A period for which aperson hasdeceased member had 122.21 allowable service credit in more than one covered retirement 122.22 plan must be used only once in determining the total allowable 122.23 service credit for calculating the combined service survivor 122.24 annuity or survivor benefit. A period of duplicated service 122.25 credit must be handled as provided in section 356.30, 122.26 subdivision 1,clause (3), items (i) and (j)paragraphs (g) and 122.27 (h). 122.28 (g) If a person is entitled to a minimum benefit payable 122.29 from a public pension plan named in section 356.30, subdivision 122.30 3, the person may receive additional credit for only those years 122.31 of service in another covered pension plan that, when added to 122.32 the years of service in the pension plan that is paying the 122.33 minimum benefit, exceed the years of service on which the 122.34 minimum benefit is based. 122.35 Subd. 4. [COVERED RETIREMENT PLANS.] This section applies 122.36 to the following retirement plans: 123.1 (1) the legislators retirement plan, established by chapter 123.2 3A; 123.3 (2) the general state employees retirementfundplan of the 123.4 Minnesota state retirement system, established by chapter 352; 123.5 (3) the correctional state employees retirement plan of the 123.6 Minnesota state retirement system, established by chapter 352; 123.7 (4) the state patrol retirementfundplan, established by 123.8 chapter 352B; 123.9 (5) the elective state officers retirement plan, 123.10 established by chapter 352C; 123.11 (6) the unclassified state employees retirementplan123.12 program, established by chapter 352D; 123.13 (7) the general employees retirement plan of the public 123.14 employees retirement association, established by chapter 353; 123.15 (8) the public employees police and firefundplan of the 123.16 public employees retirement association, established by chapter 123.17 353; 123.18 (9)public employeesthe local government correctional 123.19 service retirement plan of the public employees retirement 123.20 association, established by chapter 353E; 123.21 (10) the teachers retirement association, established by 123.22 chapter 354; 123.23 (11) the Duluth teachers retirement fund association, 123.24 established by chapter 354A; 123.25 (12) the Minneapolis teachers retirement fund association, 123.26 established by chapter 354A; 123.27 (13) the St. Paul teachers retirement fund association, 123.28 established by chapter 354A; 123.29 (14) the Minneapolis employees retirement fund, established 123.30 by chapter 422A; and 123.31 (15) the judges' retirement fund, established by sections 123.32 490.121 to 490.132. 123.33 RETIREMENT ANNUITIES 123.34 Sec. 22. [356.315] [RETIREMENT BENEFIT FORMULA 123.35 PERCENTAGES.] 123.36 Subdivision 1. [COORDINATED PLAN MEMBERS.] The applicable 124.1 benefit accrual rate is 1.2 percent. 124.2 Subd. 2. [COORDINATED PLAN MEMBERS.] The applicable 124.3 benefit accrual rate is 1.7 percent. 124.4 Subd. 2a. [COORDINATED MEMBERS.] The applicable benefit 124.5 accrual rate is 2.0 percent. 124.6 Subd. 3. [BASIC PLAN MEMBERS.] The applicable benefit 124.7 accrual rate is 2.2 percent. 124.8 Subd. 4. [BASIC PLAN MEMBERS.] The applicable benefit 124.9 accrual rate is 2.7 percent. 124.10 Subd. 5. [CORRECTIONAL PLAN MEMBERS.] The applicable 124.11 benefit accrual rate is 2.4 percent. 124.12 Subd. 5a. [LOCAL GOVERNMENT CORRECTIONAL SERVICE PLAN.] 124.13 The applicable benefit accrual rate is 1.9 percent. 124.14 Subd. 6. [STATE TROOPERS PLAN AND POLICE AND FIRE PLAN 124.15 MEMBERS.] The applicable benefit accrual rate is 3.0 percent. 124.16 Subd. 7. [JUDGES PLAN.] The applicable benefit accrual 124.17 rate is 2.7 percent. 124.18 Subd. 8. [JUDGES PLAN.] The applicable benefit accrual 124.19 rate is 3.2 percent. 124.20 Subd. 9. [FUTURE BENEFIT ACCRUAL RATE INCREASES.] After 124.21 January 2, 1998, benefit accrual rate increases under this 124.22 section must apply only to allowable service or formula service 124.23 rendered after the effective date of the benefit accrual rate 124.24 increase. 124.25 Sec. 23. Minnesota Statutes 2000, section 356.32, is 124.26 amended to read: 124.27 356.32 [PROPORTIONATE ANNUITY AT AGE 65.] 124.28 Subdivision 1. [PROPORTIONATE RETIREMENT ANNUITY.] (a) 124.29 Notwithstanding any provision to the contrary of the laws 124.30 governing any of the retirement fundsreferred toenumerated in 124.31 subdivision 2, any person who is an active member of any 124.32 applicable fund, who has credit for at least one year but less 124.33 than ten years of allowable service in one or more of 124.34 theapplicable fundscovered plans, and who terminates active 124.35 servicepursuant tounder a mandatory retirement law or policy 124.36 or at age 65 or older, or at the normal retirement age if this 125.1 age is not age 65, for any reasonshall beis entitled upon 125.2 making written application on the form prescribed byexecutive125.3director or executive secretarythe chief administrative officer 125.4 of thefundplan to a proportionate retirement annuity from each 125.5applicable fundcovered plan in which the person has allowable 125.6 service credit. 125.7 (b) The proportionate annuityshallmust be calculated 125.8 under the applicable laws governing annuities based upon 125.9 allowable service credit at the time of retirement and the 125.10 person's average salary for the highest five successive years of 125.11 allowable service or the average salary for the entire period of 125.12 allowable service if less than five years. 125.13 (c) Nothing in this sectionshall preventprevents the 125.14 imposition of the appropriate early retirement reduction of an 125.15 annuity which commencesprior tobefore the normal retirement 125.16 age. 125.17 Subd. 2. [COVEREDFUNDSRETIREMENT PLANS.] The provisions 125.18 of this sectionshallapply to the following retirement 125.19fundsplans: 125.20 (1) the general state employees retirementfundplan of the 125.21 Minnesota state retirement system, establishedpursuant tounder 125.22 chapter 352; 125.23 (2) the correctional state employees retirementprogram125.24 plan of the Minnesota state retirement system, established 125.25pursuant tounder chapter 352; 125.26 (3) the state patrol retirementfundplan, 125.27 establishedpursuant tounder chapter 352B; 125.28 (4) the general employees retirement plan of the public 125.29 employees retirementfundassociation, establishedpursuant to125.30 under chapter 353; 125.31 (5) the public employees police and firefundplan of the 125.32 public employees retirement association, establishedpursuant to125.33 under chapter 353; 125.34 (6) the teachers retirement association, established 125.35pursuant tounder chapter 354; 125.36 (7) the Minneapolis employees retirement fund, established 126.1pursuant tounder chapter 422A; 126.2 (8) the Duluth teachers retirement fund association, 126.3 establishedpursuant tounder chapter 354A; 126.4 (9) the Minneapolis teachers retirement fund association, 126.5 establishedpursuant tounder chapter 354A; and 126.6 (10) the St. Paul teachers retirement fund association, 126.7 establishedpursuant tounder chapter 354A. 126.8 Sec. 24. Minnesota Statutes 2000, section 356.40, is 126.9 amended to read: 126.10 356.40 [DATE FOR PAYMENT OF ANNUITIES AND BENEFITS.] 126.11 (a) Notwithstanding any law to the contrary, all annuities 126.12 and benefits payable on and after December 1, 1977 by a covered 126.13 retirement fund, as defined in section 356.30, subdivision 3, 126.14shallmust be paid in advance for each month during the first 126.15 week of that month. The bylaws ofmunicipallocal retirement 126.16 fundsshallmust be amended accordingly. 126.17 (b) In no event, however,shallmay this sectionauthorize126.18more than one payment in any one month where the law governing126.19the applicable retirement fund as of June 30, 1977 already126.20provides for the full payment or accrual of annuities and126.21benefits in advance for each month or as of the first day of the126.22month, nor shall itauthorize the payment of both a retirement 126.23 annuity and a surviving spouse's benefit in one month where the 126.24 law governing the applicable retirement fund provides for the 126.25 payment of the retired member's retirement annuity to the 126.26 surviving spouse for the month in which the retired member dies. 126.27 Sec. 25. [356.403] [NORMAL RETIREMENT AGE; SAVINGS 126.28 CLAUSE.] 126.29 The intent of the legislature in sections 352.01, 126.30 subdivision 25; 353.01, subdivision 37; 354.05, subdivision 38; 126.31 and 354A.011, subdivision 15a, is to create a normal retirement 126.32 age for persons first covered by those sections after May 16, 126.33 1989, that is the same as the retirement age in the federal 126.34 Social Security law, including future amendments to that law. 126.35 If a court determines that the legislature may not incorporate 126.36 by reference the future changes in federal Social Security law, 127.1 the legislature reserves the right to amend the appropriate 127.2 sections to make the normal retirement conform to the retirement 127.3 age in the federal Social Security law. No person first covered 127.4 by any of those sections after May 16, 1989, has a right to a 127.5 normal retirement age that is less than the retirement age in 127.6 the federal Social Security law. 127.7 Sec. 26. [356.405] [COMBINED PAYMENT OF RETIREMENT 127.8 ANNUITIES.] 127.9 (a) The public employees retirement association and the 127.10 Minnesota state retirement system are permitted to combine 127.11 payments to retirees. The total payment must be equal to the 127.12 amount that is payable if payments were kept separate. The 127.13 retiree must agree, in writing, to have the payment combined. 127.14 (b) Each plan must calculate the benefit amounts under the 127.15 laws governing the plan and the required reserves and future 127.16 mortality losses or gains must be paid or accrued to the plan 127.17 from which the service was earned. Each plan must account for 127.18 its portion of the payment separately, and there may be no 127.19 additional actuarial liabilities realized by either plan. 127.20 (c) The plan making the payment would be responsible for 127.21 issuing one payment, making address changes, tax withholding 127.22 changes, and other administrative functions needed to process 127.23 the payment. 127.24 SURVIVOR BENEFITS 127.25 Sec. 27. [356.406] [LOSS OF ENTITLEMENT TO BENEFITS FOR 127.26 SURVIVOR CAUSING DEATH OF PENSION PLAN MEMBER.] 127.27 Subdivision 1. [DEFINITIONS.] (a) Each of the words or 127.28 terms defined in this subdivision has the meaning indicated. 127.29 (b) "Public pension plan" means any retirement plan or fund 127.30 enumerated in section 356.20, subdivision 2, or 356.30, 127.31 subdivision 3, any relief association governed by section 69.77 127.32 or sections 69.771 to 69.775, any retirement plan governed by 127.33 chapter 354B or 354C, the Hennepin county supplemental 127.34 retirement plan governed by sections 383B.46 to 383B.52, or any 127.35 housing and redevelopment authority retirement plan. 127.36 (c) "Public pension plan member" means a person who is a 128.1 participant covered by a public pension plan, a former 128.2 participant of a public pension plan who has sufficient service 128.3 to be entitled to receive a future retirement annuity or service 128.4 pension, a recipient of a retirement annuity, service pension, 128.5 or disability benefit from a public pension plan, or a former 128.6 participant of a public pension plan who has member or employee 128.7 contributions to the person's credit in the public pension plan. 128.8 (d) "Survivor" means the surviving spouse, a former spouse, 128.9 a surviving child, a joint annuitant, a designated recipient of 128.10 a second or remainder portion of an optional annuity form, a 128.11 beneficiary, or the estate of a deceased public pension plan 128.12 member, as those terms are commonly understood or defined in the 128.13 benefit plan document of the public pension plan. 128.14 (e) "Survivor benefit" means a surviving spouse benefit, 128.15 surviving child benefit, second or remainder portion of an 128.16 optional annuity form, a death benefit, a funeral benefit, or a 128.17 refund of member or employee contributions payable on account of 128.18 the death of a public pension plan member as provided for in the 128.19 benefit plan document of the public pension plan. 128.20 Subd. 2. [SUSPENSION OF SURVIVOR BENEFITS UPON FELONY 128.21 CHARGE.] During the pendency of a charge of a survivor of a 128.22 felony that caused the death of a public pension plan member, of 128.23 criminal liability for a death by wrongful act felony, or of 128.24 conspiracy to commit a death by wrongful act felony, the 128.25 entitlement of that survivor to receive a survivor benefit is 128.26 suspended. 128.27 Subd. 3. [FORFEITURE OF SURVIVOR BENEFITS UPON FELONY 128.28 CONVICTION.] On final conviction of a survivor of a felony that 128.29 caused the death of a public pension plan member, of criminal 128.30 liability for a death by wrongful act felony, or of conspiracy 128.31 to commit a death by wrongful act felony, the entitlement of 128.32 that survivor to receive a survivor benefit is forfeited, 128.33 including entitlement for any previously suspended survivor 128.34 benefits under subdivision 2. 128.35 Subd. 4. [SUSPENSION OR FORFEITURE ACTIONS SEPARATE.] The 128.36 charge of one survivor under subdivision 2 or the conviction of 129.1 one survivor under subdivision 3 does not affect the entitlement 129.2 of another survivor to a survivor benefit. 129.3 Subd. 5. [RECOVERY OF CERTAIN BENEFITS.] If monthly 129.4 benefits or a refund or balance of a participant or former 129.5 participant's account have already been paid to an individual 129.6 who is later charged or convicted as described under this 129.7 section, the executive director or chief administrative officer 129.8 of the public pension plan shall attempt to recover the amounts 129.9 paid. Payment may be made to the next beneficiary or survivor 129.10 only in an amount equal to the amount recovered and in the 129.11 amount of any future payments that would legally accrue to 129.12 another survivor under the applicable laws of the retirement 129.13 plan. 129.14 Subd. 6. [DISPOSITION OF FORFEITED SURVIVOR BENEFITS.] If 129.15 the benefit plan document governing the public pension plan does 129.16 not provide for the disposition of forfeited benefits, survivor 129.17 benefits forfeited under this section must be deposited in the 129.18 general fund of the state. 129.19 Sec. 28. [356.407] [RESTORATION OF SURVIVOR BENEFITS.] 129.20 Subdivision 1. [RESTORATION UPON TERMINATION OF 129.21 REMARRIAGE.] Notwithstanding any provision to the contrary of 129.22 the laws governing any of the retirement plans enumerated in 129.23 subdivision 2, any person who was receiving a surviving spouse's 129.24 benefit from any of those plans and whose benefit terminated 129.25 solely because of remarriage is, if the remarriage terminates 129.26 for any reason, again entitled upon reapplication to a surviving 129.27 spouse's benefit; provided, however, that the person is not 129.28 entitled to retroactive payments for the period of remarriage. 129.29 The benefit resumes at the level which the person would have 129.30 been receiving if there had been no remarriage. This section 129.31 applies prospectively to any person who first becomes entitled 129.32 to receive a surviving spouse's benefit on or after May 18, 129.33 1975, and also applies retroactively to any person who first 129.34 became entitled to receive a surviving spouse's benefit before 129.35 May 18, 1975; provided, however, that no person is entitled to 129.36 retroactive payments for any period of time before May 18, 1975. 130.1 Subd. 2. [COVERED FUNDS.] The provisions of this section 130.2 apply to the following retirement funds: 130.3 (1) the general employees retirement plan of the public 130.4 employees retirement association established under chapter 353; 130.5 (2) the public employees police and fire plan of the public 130.6 employees retirement association established under chapter 353; 130.7 (3) the state patrol retirement plan established under 130.8 chapter 352B; 130.9 (4) the legislators retirement plan established under 130.10 chapter 3A; 130.11 (5) the elective state officers retirement plan established 130.12 under chapter 352C; 130.13 (6) the teachers retirement association established under 130.14 chapter 354; and 130.15 (7) the Minneapolis employees retirement fund established 130.16 under chapter 422A. 130.17 POSTRETIREMENT INCREASES 130.18 Sec. 29. Minnesota Statutes 2000, section 356.41, is 130.19 amended to read: 130.20 356.41 [BENEFIT ADJUSTMENTS FOR CERTAIN DISABILITY AND 130.21 SURVIVOR BENEFITS.] 130.22 Disability benefits payable to a disabilitant, if not 130.23 otherwise included in the participation in the Minnesota 130.24 postretirement investment fund, and survivor benefits payable to 130.25 a survivor from any public pensionfundplan which participates 130.26 in the Minnesota postretirement investment fundshallmust be 130.27 adjusted in the same manner, at the same times and in the same 130.28 amounts as are benefits payable from the Minnesota 130.29 postretirement investment fund to eligible benefit recipients of 130.30 that public pensionfundplan. If a disability benefit is not 130.31 included in the participation in the Minnesota postretirement 130.32 investment fund, the disability benefit is recomputed as a 130.33 retirement annuity and the recipient would have been eligible 130.34 for an adjustmentpursuant tounder this section if the 130.35 disability benefit was not recomputed, the recipientwill130.36continue to beremains eligible for the adjustmentpursuant to131.1 under this section after the recomputation. For the survivor of 131.2 a deceased annuitant who receives a survivor benefit 131.3 calculatedpursuant tounder a prior law rather than the second 131.4 portion of a joint and survivor annuity, any period of receipt 131.5 of a retirement annuity by the annuitantshallmust be utilized 131.6 in determining the period of receipt for eligibility to receive 131.7 an adjustmentpursuant tounder this section. No recipient 131.8shall, however,beis entitled to more than one adjustment 131.9pursuant tounder this section or section 11A.18 applicable to 131.10 one benefit at one time by reason of this section. 131.11 Sec. 30. [356.42] [POSTRETIREMENT ADJUSTMENT; LUMP SUM 131.12 PAYMENTS.] 131.13 Subdivision 1. [ENTITLEMENT.] A person who is receiving a 131.14 retirement annuity, a disability benefit, or a surviving 131.15 spouse's annuity or benefit from a retirement fund specified in 131.16 subdivision 3, clauses (1) to (8), is entitled to receive a 131.17 postretirement adjustment from the applicable retirement fund in 131.18 the amount specified in subdivision 2, if the annuity or benefit 131.19 was computed under: 131.20 (1) the laws in effect before June 1, 1973, if the person 131.21 is receiving an annuity or benefit from the retirement fund 131.22 specified in subdivision 3, clause (4); 131.23 (2) the laws in effect before July 1, 1973, if the person 131.24 is receiving an annuity or benefit from a retirement fund 131.25 specified in subdivision 3, clause (1), (2), (3), or (5); 131.26 (3) the metropolitan transit commission transit operating 131.27 division employees retirement fund plan document in effect on or 131.28 before December 31, 1977, if the person is receiving a 131.29 retirement annuity, a disability benefit, or a surviving 131.30 spouse's annuity or benefit from the retirement fund specified 131.31 in subdivision 3, clause (5); 131.32 (4) the laws in effect before May 1, 1974, and before any 131.33 adjustment under Laws 1987, chapter 372, article 3, if the 131.34 person is receiving an annuity or benefit from the retirement 131.35 fund specified in subdivision 3, clause (6); 131.36 (5) the laws in effect before January 1, 1970, if the 132.1 person is receiving an annuity or benefit from the retirement 132.2 fund specified in subdivision 3, clause (7); or 132.3 (6) the laws in effect before June 30, 1971, if the person 132.4 is receiving an annuity or benefit from the retirement fund 132.5 specified in subdivision 3, clause (8). 132.6 Subd. 2. [AMOUNT OF POSTRETIREMENT ADJUSTMENT; PAYMENT.] 132.7 (a) For any person receiving an annuity or benefit on November 132.8 30, 1989, and entitled to receive a postretirement adjustment 132.9 under subdivision 1, the postretirement adjustment is a lump sum 132.10 payment calculated under paragraph (b) or (c). 132.11 (b) For coordinated plan annuity or benefit recipients, the 132.12 postretirement adjustment in 1989 is $25 for each full year of 132.13 allowable service credited to the person by the respective 132.14 retirement fund. In 1990 and each following year, the 132.15 postretirement adjustment is the amount payable in the preceding 132.16 year increased by the same percentage applied to regular 132.17 annuities paid from the postretirement fund or, for the 132.18 retirement funds specified in subdivision 3, clauses (6), (7), 132.19 and (8), by the same percentage applied under the articles of 132.20 incorporation and bylaws of these funds. 132.21 (c) For basic plan annuity or benefit recipients, the 132.22 postretirement adjustment in 1989 is the greater of: 132.23 (1) $25 for each full year of allowable service credited to 132.24 the person by the respective retirement fund; or 132.25 (2) the difference between: 132.26 (i) the product of $400 times the number of full years of 132.27 allowable service credited to the person by the respective 132.28 retirement fund; and 132.29 (ii) the sum of the benefits payable to the person from any 132.30 Minnesota public employee pension plan, and cash benefits 132.31 payable to the person from the Social Security Administration. 132.32 In 1990 and each following year, each eligible basic plan 132.33 annuity or benefit recipient shall receive the amount received 132.34 in the preceding year increased by the same percentage applied 132.35 to regular annuities paid from the postretirement fund or, for 132.36 the retirement funds specified in subdivision 3, clauses (6), 133.1 (7), and (8), by the same percentage applied under the articles 133.2 of incorporation and bylaws of these funds. 133.3 (d) The postretirement adjustment provided for in this 133.4 section must be paid on December 1 to those persons receiving an 133.5 annuity or benefit on the preceding November 30. This section 133.6 does not authorize the payment of a postretirement adjustment to 133.7 an estate if the annuity or benefit recipient dies before the 133.8 November 30 eligibility date. The postretirement adjustment 133.9 provided for in this section must be paid automatically unless 133.10 the intended recipient files a written notice with the 133.11 retirement fund requesting that the postretirement adjustment 133.12 not be paid or returns the amount of adjustment to the 133.13 retirement fund. Written notice of the waiver of the 133.14 postretirement adjustment is irrevocable for the year during 133.15 which it was made. 133.16 Subd. 3. [COVERED RETIREMENT PLANS.] The postretirement 133.17 adjustment provided in this section applies to the following 133.18 retirement funds: 133.19 (1) the general employees retirement plans of the public 133.20 employees retirement association; 133.21 (2) the public employees police and fire plan of the public 133.22 employees retirement association; 133.23 (3) the teachers retirement association; 133.24 (4) the state patrol retirement plan; 133.25 (5) the state employees retirement plan of the Minnesota 133.26 state retirement system; 133.27 (6) the Minneapolis teachers retirement fund association 133.28 established under chapter 354A; 133.29 (7) the St. Paul teachers retirement fund association 133.30 established under chapter 354A; and 133.31 (8) the Duluth teachers retirement fund association 133.32 established under chapter 354A. 133.33 Sec. 31. [356.43] [SUPPLEMENTAL BENEFIT; LUMP SUM 133.34 PAYMENTS; MINNEAPOLIS EMPLOYEES RETIREMENT FUND.] 133.35 Subdivision 1. [ENTITLEMENT.] Any person who is receiving 133.36 either an annuity that was computed under the laws in effect 134.1 before March 5, 1974, or a "$2 bill and annuity" annuity from 134.2 the Minneapolis employees retirement fund is entitled to receive 134.3 a supplemental benefit lump sum payment from the retirement fund 134.4 in the amount specified in subdivision 2. 134.5 Subd. 2. [AMOUNT OF PAYMENT.] (a) For any person receiving 134.6 an annuity or benefit on November 30, 1991, and entitled to 134.7 receive a supplemental benefit lump sum payment under 134.8 subdivision 1, the payment is $28 for each full year of 134.9 allowable service credited to the person by the retirement fund. 134.10 In 1992 and each following year, each eligible benefit 134.11 recipient is entitled to receive the amount received in the 134.12 preceding year increased by the same percentage applied on the 134.13 most recent January 1 to regular annuities paid from the 134.14 Minneapolis employees retirement fund. 134.15 (b) The payment provided for in this section is payable on 134.16 December 1, 1991, to those persons receiving an annuity or 134.17 benefit on November 30, 1991. In subsequent years, the payment 134.18 must be made on December 1 to those persons receiving an annuity 134.19 or benefit on the preceding November 30. This section does not 134.20 authorize payment to an estate if the annuity or benefit 134.21 recipient dies before the November 30 eligibility date. The 134.22 payment provided for in this section must be paid automatically 134.23 unless the intended recipient files a written notice with the 134.24 retirement fund requesting that it not be paid. 134.25 Subd. 3. [STATE APPROPRIATION.] Payments under this 134.26 section are the responsibility of the Minneapolis employees 134.27 retirement fund. A separate state aid is provided toward the 134.28 level dollar amortized cost of the payments. For state fiscal 134.29 years 1992 to 2001 inclusive, there is appropriated annually 134.30 $550,000 from the general fund to the commissioner of finance to 134.31 be added, in quarterly installments, to the annual state 134.32 contribution amount determined under section 422A.101, 134.33 subdivision 3. After fiscal year 2001, any difference between 134.34 the cumulative benefit amounts actually paid under this section 134.35 after fiscal year 1991 and the amounts paid to the retirement 134.36 fund by the state under this subdivision, plus investment 135.1 earnings on the aid, shall be included by the retirement fund 135.2 board and the actuary retained by the legislative commission on 135.3 pensions and retirement in determining the financial 135.4 requirements of the fund and contributions under section 135.5 422A.101. 135.6 Sec. 32. [356.431] [CONVERSION OF LUMP-SUM POSTRETIREMENT 135.7 AND SUPPLEMENTAL PAYMENT TO AN INCREASED MONTHLY ANNUITY.] 135.8 Subdivision 1. [LUMP-SUM POSTRETIREMENT PAYMENT 135.9 CONVERSION.] For benefits paid after December 31, 2001, to 135.10 eligible persons under sections 356.42 and 356.43, the amount of 135.11 the most recent lump-sum benefit payable to an eligible 135.12 recipient under sections 356.86 and 356.865, must be divided by 135.13 12. The result must be added to the monthly annuity or benefit 135.14 otherwise payable to an eligible recipient, must become a 135.15 permanent part of the benefit recipient's pension, and must be 135.16 included in any pension benefit subject to future increases. 135.17 Subd. 2. [TRANSFER OF REQUIRED RESERVES TO MINNESOTA 135.18 POSTRETIREMENT INVESTMENT FUND.] Public employee retirement 135.19 funds participating in the state board of investment 135.20 postretirement investment fund shall transfer the required 135.21 reserves for the postretirement conversion under subdivision 1 135.22 to the postretirement investment fund by January 31, 2002. 135.23 REFUNDS 135.24 Sec. 33. [356.44] [PARTIAL PAYMENT OF PENSION PLAN 135.25 REFUND.] 135.26 (a) Notwithstanding any provision of law to the contrary, a 135.27 member of a pension plan listed in section 356.30, subdivision 135.28 3, with at least two years of forfeited service taken from a 135.29 single pension plan may repay a portion of all refunds. A 135.30 partial refund repayment must comply with this section. 135.31 (b) The minimum portion of a refund repayment is one-third 135.32 of the total service credit period of all refunds taken from a 135.33 single plan. 135.34 (c) The cost of the partial refund repayment is the product 135.35 of the cost of the total repayment multiplied by the ratio of 135.36 the restored service credit to the total forfeited service 136.1 credit. The total repayment amount includes interest at the 136.2 annual rate of 8.5 percent, compounded annually, from the refund 136.3 date to the date repayment is received. 136.4 (d) The restored service credit is allocated based on the 136.5 relationship the restored service bears to the total service 136.6 credit period for all refunds taken from a single pension plan. 136.7 (e) This section does not authorize a public pension plan 136.8 member to repay a refund if the law governing the plan does not 136.9 authorize the repayment of a refund of member contributions. 136.10 Sec. 34. [356.441] [REPAYMENT OF REFUNDS.] 136.11 Repayment of a refund and interest on that refund permitted 136.12 under laws governing any public pension plan in Minnesota may be 136.13 made with funds distributed from a plan qualified under the 136.14 federal Internal Revenue Code of 1986, section 401(a), as 136.15 amended through December 31, 1988, or an annuity qualified under 136.16 the federal Internal Revenue Code of 1986, section 403(a). 136.17 Repayment may also be made with funds distributed from an 136.18 individual retirement account used solely to receive a 136.19 nontaxable rollover from that type of a plan or annuity. The 136.20 repaid refund must be separately accounted for as member 136.21 contributions not previously taxed. Before accepting any 136.22 transfers to which this section applies, the executive director 136.23 must require the member to provide written documentation to 136.24 demonstrate that the amounts to be transferred are eligible for 136.25 a tax-free rollover and qualify for that treatment under the 136.26 federal Internal Revenue Code of 1986. 136.27 OPTIONAL ANNUITY FORMS 136.28 Sec. 35. [356.46] [APPLICATION FOR RETIREMENT ANNUITY; 136.29 PROCEDURE FOR ELECTING ANNUITY FORM.] 136.30 Subdivision 1. [DEFINITIONS.] As used in this section, 136.31 each of the following terms shall have the meaning given. 136.32 (a) "Annuity form" means the payment procedure and duration 136.33 of a retirement annuity or disability benefit available to a 136.34 member of a public pension fund, based on the period over which 136.35 a retirement annuity or disability benefit is payable, 136.36 determined by the number of persons to whom the retirement 137.1 annuity or disability benefit is payable, and the amount of the 137.2 retirement annuity or disability benefit which is payable to 137.3 each person. 137.4 (b) "Joint and survivor optional annuity" means an optional 137.5 annuity form which provides a retirement annuity or disability 137.6 benefit to a retired member and the spouse of the member on a 137.7 joint basis during the lifetime of the retired member and all or 137.8 a portion of the original retirement annuity or disability 137.9 benefit amount to the surviving spouse in the event of the death 137.10 of the retired member. 137.11 (c) "Optional annuity form" means an annuity form which is 137.12 elected by a member and is not provided automatically as the 137.13 standard annuity form of the public pension plan. 137.14 (d) "Public pension plan" means a public pension plan as 137.15 defined pursuant to section 356.615, paragraph (b). 137.16 (e) "Retirement annuity" means a series of monthly payments 137.17 to which a former or retired member of a public pension fund is 137.18 entitled on account of attaining a specified age and acquiring 137.19 credit for a specified period of service, which includes a 137.20 retirement annuity, retirement allowance, or service pension. 137.21 (f) "Disability benefit" means a series of monthly payments 137.22 to which a former or disabled member of a public pension fund is 137.23 entitled on account of a physical or mental inability to engage 137.24 in specified employment. 137.25 Subd. 2. [PROVISION OF INFORMATION ON ANNUITY FORMS.] 137.26 Every public pension plan which provides for an annuity form 137.27 other than a single life retirement annuity as an option which 137.28 can be elected by an active, disabled, or retiring member shall 137.29 provide as a part of, or accompanying the annuity application 137.30 form, a written statement summarizing the optional annuity forms 137.31 which are available, a general indication of the consequences of 137.32 selecting one annuity form over another, a calculation of the 137.33 actuarial reduction in the amount of the retirement annuity 137.34 which would be required for each optional annuity form, and the 137.35 procedure to be followed to obtain more information from the 137.36 public pension fund concerning the optional annuity forms 138.1 provided by the plan. 138.2 Subd. 3. [REQUIREMENT OF NOTICE TO MEMBER'S SPOUSE.] (a) 138.3 If a public pension plan provides optional retirement annuity 138.4 forms which include a joint and survivor optional retirement 138.5 annuity form potentially applicable to the surviving spouse of a 138.6 member, the executive director of the public pension plan shall 138.7 send a copy of the written statement required by subdivision 2 138.8 to the spouse of the member before the member's election of an 138.9 optional retirement annuity. 138.10 (b) Following the election of a retirement annuity by the 138.11 member, a copy of the completed retirement annuity application 138.12 and retirement annuity beneficiary form, if applicable, must be 138.13 sent by the public pension plan to the spouse of the retiring 138.14 member. A signed acknowledgment must be required from the 138.15 spouse confirming receipt of a copy of the completed retirement 138.16 annuity application and retirement annuity beneficiary form 138.17 unless the spouse's signature confirming the receipt is on the 138.18 annuity application form. If the required signed acknowledgment 138.19 is not received from the spouse within 30 days, the public 138.20 pension plan must send another copy of the completed retirement 138.21 annuity application and retirement annuity beneficiary form, if 138.22 applicable, to the spouse by certified mail with restricted 138.23 delivery. 138.24 Sec. 36. [356.465] [SUPPLEMENTAL NEEDS TRUST AS OPTIONAL 138.25 ANNUITY FORM RECIPIENT.] 138.26 Subdivision 1. [INCLUSION AS RECIPIENT.] Notwithstanding 138.27 any provision to the contrary of the laws, articles of 138.28 incorporation, or bylaws governing a covered retirement plan 138.29 specified in subdivision 3, a retiring member may designate a 138.30 qualified supplemental needs trust under subdivision 2 as the 138.31 remainder recipient on an optional retirement annuity form for a 138.32 period not to exceed the lifetime of the beneficiary of the 138.33 supplemental needs trust. 138.34 Subd. 2. [DEFINITION OF QUALIFIED SUPPLEMENTAL NEEDS 138.35 TRUST.] A qualified supplemental needs trust is a trust that: 138.36 (1) was established on or after July 1, 1992; 139.1 (2) was established solely for the benefit of one person 139.2 who has a disability under federal Social Security 139.3 Administration supplemental security income or retirement, 139.4 survivors, and disability insurance disability determination 139.5 standards and who was determined as such before the creation of 139.6 the trust; 139.7 (3) is funded, in whole or in part, by the primary 139.8 recipient of the optional annuity form and, unless the trust is 139.9 a Zebley trust, is not funded by the beneficiary, the 139.10 beneficiary's spouse, or a person who is required to pay a sum 139.11 to or for the trust beneficiary under the terms of litigation or 139.12 a litigation settlement; 139.13 (4) is established to cover reasonable living expenses and 139.14 other basic needs of the disabilitant, in whole or in part, in 139.15 instances when public assistance does not provide sufficiently 139.16 for these needs; 139.17 (5) is not permitted to make disbursement to replace or 139.18 reduce public assistance otherwise available; 139.19 (6) is irrevocable; 139.20 (7) terminates upon the death of the disabled person for 139.21 whose benefit it was established; and 139.22 (8) is determined by the executive director to be a trust 139.23 that contains excluded assets for purposes of the qualification 139.24 for public entitlement benefits under the applicable federal and 139.25 state laws and regulations. 139.26 Subd. 3. [COVERED RETIREMENT PLANS.] The provisions of 139.27 this section apply to the following retirement plans: 139.28 (1) the general state employees retirement plan of the 139.29 Minnesota state retirement system established under chapter 352; 139.30 (2) the correctional state employees retirement plan of the 139.31 Minnesota state retirement system established under chapter 352; 139.32 (3) the state patrol retirement plan established under 139.33 chapter 352B; 139.34 (4) the legislators retirement plan established under 139.35 chapter 3A; 139.36 (5) the judges retirement plan established under chapter 140.1 490; 140.2 (6) the general employees retirement plan of the public 140.3 employees retirement association established under chapter 353; 140.4 (7) the public employees police and fire plan of the public 140.5 employees retirement association established under chapter 353; 140.6 (8) the teachers retirement plan established under chapter 140.7 354; 140.8 (9) the Duluth teachers retirement fund association 140.9 established under chapter 354A; 140.10 (10) the St. Paul teachers retirement fund association 140.11 established under chapter 354A; 140.12 (11) the Minneapolis teachers retirement fund association 140.13 established under chapter 354A; 140.14 (12) the Minneapolis employees retirement plan established 140.15 under chapter 422A; 140.16 (13) the Minneapolis firefighters relief association 140.17 established under chapter 69; 140.18 (14) the Minneapolis police relief association established 140.19 under chapter 423B; and 140.20 (15) the local government correctional service retirement 140.21 plan of the public employees retirement association established 140.22 under chapter 353E. 140.23 REEMPLOYED ANNUITANT EARNINGS DISPOSITION 140.24 Sec. 37. [356.47] [DISPOSITION OF AMOUNT IN EXCESS OF 140.25 REEMPLOYED ANNUITANT EARNINGS LIMITATIONS.] 140.26 Subdivision 1. [APPLICATION.] This section applies to the 140.27 balance of annual retirement annuities on the amount of 140.28 retirement annuity reductions after reemployed annuitant 140.29 earnings limitations for retirement plans governed by section 140.30 352.115, subdivision 10; 353.37; 354.44, subdivision 5; or 140.31 354A.31, subdivision 3. 140.32 Subd. 2. [RECORDKEEPING; REPORTING.] The chief 140.33 administrative officer of each retirement plan shall keep 140.34 records for each reemployed annuitant of the amount of the 140.35 annuity reduction. This amount must be reported to each member 140.36 at least once each year. 141.1 Subd. 3. [PAYMENT.] (a) Upon the retired member attaining 141.2 the age of 65 years or upon the first day of the month next 141.3 following the month occurring one year after the termination of 141.4 the reemployment that gave rise to the limitation, whichever is 141.5 later, and the filing of a written application, the retired 141.6 member is entitled to the payment, in a lump sum, of the value 141.7 of the person's amount under subdivision 2, plus interest at the 141.8 compound annual rate of six percent from the date that the 141.9 amount was deducted from the retirement annuity to the date of 141.10 payment. 141.11 (b) The written application must be on a form prescribed by 141.12 the chief administrative officer of the applicable retirement 141.13 plan. 141.14 (c) If the retired member dies before the payment provided 141.15 for in paragraph (a) is made, the amount is payable, upon 141.16 written application, to the deceased person's surviving spouse, 141.17 or if none, to the deceased person's designated beneficiary, or 141.18 if none, to the deceased person's estate. 141.19 MARRIAGE DISSOLUTION RETIREMENT 141.20 COVERAGE INFORMATION 141.21 Sec. 38. [356.49] [PROVISION OF INFORMATION IN THE EVENT 141.22 OF MARRIAGE DISSOLUTION.] 141.23 Subdivision 1. [INFORMATION FOR A PENDING MARRIAGE 141.24 DISSOLUTION.] (a) Upon receipt of a written request by a person 141.25 with access to the data under subdivision 3 who cites this 141.26 statute, a public or private pension plan administrator must 141.27 provide the court and the parties to a marriage dissolution 141.28 action involving a plan member or former plan member with 141.29 information regarding pension benefits or rights of the plan 141.30 member or former plan member. The pension plan shall provide 141.31 this information upon the request of the court or a party to the 141.32 action without requiring a signed authorization from the plan 141.33 member or former plan member. 141.34 (b) The information must include the pension benefits or 141.35 rights of the plan member or former plan member as of the first 141.36 day of the month following the date of the request, or as of the 142.1 end of the previous fiscal year for the plan, and as of the date 142.2 of valuation of marital assets under section 518.58, if the 142.3 person requesting the information specifies that date. The 142.4 information must include the accrued service credit of the 142.5 person, the credited salary of the person for the most current 142.6 five-year period, a summary of the benefit plan, and any other 142.7 information relevant to the calculation of the present value of 142.8 the benefits or rights. 142.9 Subd. 2. [INFORMATION FOR AN EXISTING DISSOLUTION DECREE.] 142.10 If a marriage dissolution decree rendered by a court of 142.11 competent jurisdiction prior to August 1, 1987, provided a 142.12 procedure for the distribution of future pension plan payments, 142.13 upon request the applicable pension plan administrator shall 142.14 provide on a timely basis to the court and the parties to the 142.15 action the required information to implement that procedure 142.16 without requiring a signed authorization from the plan member or 142.17 former plan member. 142.18 Subd. 3. [ACCESS TO DATA.] Notwithstanding any provision 142.19 of chapter 13 to the contrary, an administrator may release 142.20 private or confidential data on individuals to the court, the 142.21 parties to a marriage dissolution, their attorneys, and an 142.22 actuary appointed under section 518.582, to the extent necessary 142.23 to comply with this section, but only if the administrator has 142.24 received a copy of the legal petition showing that an action for 142.25 marriage dissolution has commenced and a copy of the affidavit 142.26 of service showing that the petition has been served on the 142.27 responding party to the action. 142.28 SERVICE AND SALARY CREDIT UPON 142.29 WRONGFUL DISCHARGE 142.30 Sec. 39. Minnesota Statutes 2000, section 356.50, is 142.31 amended to read: 142.32 356.50 [SERVICE AND SALARY CREDIT FROM BACK PAY AWARDS IN 142.33 THE EVENT OF WRONGFUL DISCHARGE.] 142.34 (a) A person who is wrongfully discharged from public 142.35 employment that gave rise to coverage by a public employee 142.36 pension planlistedenumerated in section 356.30, subdivision 3, 143.1 is entitled to obtain allowable service credit from the 143.2 applicable public employee pension plan for the applicable 143.3 period caused by the wrongful discharge. 143.4 (b) A person is wrongfully discharged for purposes of this 143.5 section if: 143.6 (1) the person has been determined by a court of competent 143.7 jurisdiction or an arbitrator in binding arbitration to have 143.8 been wrongfully discharged from public employment; 143.9 (2) the person received an award of back pay with respect 143.10 to that discharge; and 143.11 (3) the award does not include any amount for any lost or 143.12 interrupted public pension plan coverage. 143.13(b)(c) To obtain the public pension plan allowable service 143.14 credit, the person shall pay the required member contribution 143.15 amount. The required member contribution amount is the member 143.16 contribution rate or rates in effect for the pension plan during 143.17 the period of service covered by the back pay award, applied to 143.18 the unpaid gross salary amounts of the back pay award including 143.19 reemployment insurance, workers' compensation or wages from 143.20 other sources which reduced the back award. No contributions 143.21 shall be made under this clause for compensation covered by a 143.22 public pension plan listed in section 356.30, subdivision 3, for 143.23 employment during the removal period. The person shall pay the 143.24 required member contribution amount within 60 days of the date 143.25 of receipt of the back pay award, within 60 days of April 14, 143.26 1992, or within 60 days of a billing from the retirement fund, 143.27 whichever is later. 143.28(c)(d) The public employer who wrongfully discharged the 143.29 public employee must pay an employer contribution on the back 143.30 pay award. The employer contribution must be based on the 143.31 employer contribution rate or rates in effect for the pension 143.32 plan during the period of service covered by the back pay award, 143.33 applied to the salary amount on which the member contribution 143.34 amount was determined under paragraph(b)(c). Interest on both 143.35 the required member and employer contribution amount must be 143.36 paid by the employer at the annual compound rate of 8.5 percent 144.1 per year, expressed monthly, between the date the contribution 144.2 amount would have been paid to the date of actual payment. The 144.3 employer payment must be made within 30 days of the payment 144.4 under paragraph(b)(c). 144.5 Sec. 40. Minnesota Statutes 2000, section 356.55, as 144.6 amended by Laws 2001, First Special Session chapter 10, article 144.7 6, section 16, is amended to read: 144.8 356.55 [PRIOR SERVICE CREDIT PURCHASE PAYMENT AMOUNT 144.9 DETERMINATION PROCEDURE.] 144.10 Subdivision 1. [APPLICATION.] (a) Unless the prior service 144.11 credit purchase authorization special law or general statute 144.12 provision explicitly specifies a different purchase payment 144.13 amount determination procedure, this section governs the 144.14 determination of the prior service credit purchase payment 144.15 amount of any prior service credit purchase. 144.16 (b) The purchase payment amount determination procedure 144.17 must recognize any service credit accrued to the purchaser in a 144.18 pension planlistedenumerated in section 356.30, subdivision 3. 144.19 (c) Any service credit in a Minnesota defined benefit 144.20 public employee pension plan available to be reinstated by the 144.21 purchaser through the repayment of a refund of member or 144.22 employee contributions previously received must be repaid in 144.23 full before any purchase of prior service credit payment is made 144.24 under this section. 144.25 Subd. 2. [DETERMINATION.] (a) Unless the prior service 144.26 credit purchase minimum purchase payment amount determined under 144.27 paragraph (d) is greater, the prior service credit purchase 144.28 amount is the result obtained by subtracting the amount 144.29 determined under paragraph (c) from the amount determined under 144.30 paragraph (b). 144.31 (b) The present value of the unreduced single life 144.32 retirement annuity, with the purchase of the additional service 144.33 credit included, must be calculated as follows: 144.34 (1) the age at first eligibility for an unreduced single 144.35 life retirement annuity, including the purchase of the 144.36 additional service credit, must be determined; 145.1 (2) the length of total service credit, including the 145.2 period of the purchase of the additional service credit, at the 145.3 age determined under clause (1) must be determined; 145.4 (3) the highest five successive years average salary at the 145.5 age determined under clause (1), assuming five percent annual 145.6 compounding salary increases from the most current annual salary 145.7 amount at the age determined under clause (1), must be 145.8 determined; 145.9 (4) using the benefit accrual rate or rates applicable to 145.10 the prospective purchaser of the service credit based on the 145.11 prospective purchaser's actual date of entry into covered 145.12 service, the length of service determined under clause (2), and 145.13 the final average salary determined under clause (3), the annual 145.14 unreduced single life retirement annuity amount must be 145.15 determined; 145.16 (5) the actuarial present value of the projected annual 145.17 unreduced single life retirement annuity amount determined under 145.18 clause (4) at the age determined under clause (1), using the 145.19 same actuarial factor that the plan would use to determine 145.20 actuarial equivalence for optional annuity forms and related 145.21 purposes, must be determined; and 145.22 (6) the discounted value of the amount determined under 145.23 clause (5) to the date of the prospective purchase, using an 145.24 interest rate of 8.5 percent and no mortality probability 145.25 decrement, must be determined. 145.26 (c) The present value of the unreduced single life 145.27 retirement annuity, without the purchase of the additional 145.28 service credit included, must be calculated as follows: 145.29 (1) the age at first eligibility for an unreduced single 145.30 life retirement annuity, not including the purchase of 145.31 additional service credit, must be determined; 145.32 (2) the length of accrued service credit, without the 145.33 period of the purchase of the additional service credit, at the 145.34 age determined under clause (1), must be determined; 145.35 (3) the highest five successive years average salary at the 145.36 age determined under clause (1), assuming five percent annual 146.1 compounding salary increases from the most current annual salary 146.2 amount to the age determined under clause (1), must be 146.3 determined; 146.4 (4) using the benefit accrual rate or rates applicable to 146.5 the prospective purchaser of the service credit based on the 146.6 prospective purchaser's actual date of entry into covered 146.7 service the length of service credit determined under clause 146.8 (2), and the final average salary determined under clause (3), 146.9 the annual unreduced single life retirement annuity amount must 146.10 be determined; 146.11 (5) the actuarial present value of the projected annual 146.12 unreduced single life retirement annuity amount determined under 146.13 clause (4) at the age determined under clause (1), using the 146.14 same actuarial factor that the plan would use to determine 146.15 actuarial equivalence for optional annuity forms and related 146.16 purposes, must be determined; 146.17 (6) the discounted value of the amount determined under 146.18 clause (5) to the date of the prospective purchase, using an 146.19 interest rate of 8.5 percent and no mortality probability 146.20 decrement, must be determined; and 146.21 (7) the net value of the discounted value determined under 146.22 clause (6), must be determined by applying a service ratio, 146.23 where the numerator is the total length of credited service 146.24 determined under paragraph (b), clause (2), reduced by the 146.25 period of the additional service credit proposed to be 146.26 purchased, and where the denominator is the total length of 146.27 service credit determined under clause (2). 146.28 (d) The minimum prior service credit purchase payment 146.29 amount is the amount determined by multiplying the most current 146.30 annual salary of the prospective purchaser by the combined 146.31 current employee, employer, and any additional employer 146.32 contribution rates for the applicable pension plan and by 146.33 multiplying that result by the number of years of service or 146.34 fractions of years of service of the potential service credit 146.35 purchase. 146.36 Subd. 3. [SOURCE OF DETERMINATION.] The prior service 147.1 credit purchase payment amounts under subdivision 2 must be 147.2 calculated by the chief administrative officer of the public 147.3 pension plan using a prior service credit purchase payment 147.4 amount determination process that has been verified for accuracy 147.5 and consistency under this section by the commission-retained 147.6 actuary. That verification must be in writing and must occur 147.7 before the first prior service credit purchase for the plan 147.8 under this section is accepted and every five years thereafter 147.9 or whenever the preretirement interest rate, postretirement 147.10 interest rate, payroll growth, or mortality actuarial assumption 147.11 for the applicable pension plan is modified under section 147.12 356.215, whichever occurs first. 147.13 Subd. 4. [PRIOR SERVICE CREDIT PURCHASE PROCESSING FEE.] A 147.14 public pension plan may establish a fee to be charged to the 147.15 prospective purchaser for processing a prior service credit 147.16 purchase application and the prior service credit purchase 147.17 payment amount calculation. The fee must be established by the 147.18 governing board of the pension plan and must be uniform for 147.19 comparable service credit purchase situations or actuarial 147.20 calculation requests. The prior service credit purchase 147.21 processing fee structure must be published by the chief 147.22 administrative officer of the applicable retirement plan in the 147.23 State Register. 147.24 Subd. 5. [PAYMENT RESPONSIBILITY; EMPLOYER OPTION.] Unless 147.25 the prior service credit purchase authorization special law or 147.26 general statute provision explicitly specifies otherwise, the 147.27 prior service credit purchase payment amount determined under 147.28 subdivision 2 is payable by the purchaser, but. However, the 147.29 former employer of the purchaser or the current employer of the 147.30 purchaser may, at its discretion, pay all or a portion of the 147.31 purchase payment amount in excess of an amount equal to the 147.32 employee contribution rate or rates in effect during the prior 147.33 service period applied to the actual salary rates in effect 147.34 during the prior service period, plus annual compound interest 147.35 at the rate of 8.5 percent from the date on which the 147.36 contributions would have been made if made contemporaneous with 148.1 the service period to the date on which the payment is actually 148.2 made. 148.3 Subd. 6. [REPORT ON PRIOR SERVICE CREDIT PURCHASES.] (a) 148.4 As part of the regular data reporting provided to the consulting 148.5 actuary retained by the legislative commission on pensions and 148.6 retirement annually, the chief administrative officer of each 148.7 public pension plan that has accepted a prior service credit 148.8 purchase payment under this section shall report for any 148.9 purchase, the purchaser, the purchaser's employer, the age of 148.10 the purchaser, the period of the purchase, the purchaser's 148.11 prepurchase accrued service credit, the purchaser's postpurchase 148.12 accrued service credit, the purchaser's prior service credit 148.13 payment, the prior service credit payment made by the 148.14 purchaser's employer, and the amount of the additional benefit 148.15 or annuity purchased. 148.16 (b) As a supplemental report to the regular annual 148.17 actuarial valuation for the applicable public pension plan 148.18 prepared by the consulting actuary retained by the legislative 148.19 commission on pensions and retirement,there must bethe actuary 148.20 shall provide a comparison for each purchase showing the total 148.21 prior service credit payment received from all sources and the 148.22 increased public pension plan actuarial accrued liability 148.23 resulting from each purchase. 148.24 Subd. 7. [EXPIRATION OF PURCHASE PAYMENT DETERMINATION 148.25 PROCEDURE.] (a) This section expires and is repealed on July 1, 148.26 2003. 148.27 (b) Authority for any public pension plan to accept a prior 148.28 service credit payment that is calculated in a timely fashion 148.29 under this section expires on October 1, 2003. 148.30 Sec. 41. Minnesota Statutes 2000, section 356.551, is 148.31 amended to read: 148.32 356.551 [POST JULY 1,20012003, PRIOR SERVICE CREDIT 148.33 PURCHASE PAYMENT AMOUNT DETERMINATION PROCEDURE.] 148.34(a)Subdivision 1. [APPLICATION.] Unless the prior service 148.35 credit purchase authorization special law or general statute 148.36 provision explicitly specifies a different purchase payment 149.1 amount determination procedure, and if section 356.55 has 149.2 expired, this section governs the determination of the prior 149.3 service credit purchase payment amount of any prior service 149.4 credit purchase. 149.5(b)Subd. 2. [DETERMINATION.] The prior service credit 149.6 purchase amount is an amount equal to the actuarial present 149.7 value, on the date of payment, as calculated by the chief 149.8 administrative officer of the pension plan and reviewed by the 149.9 actuary retained by the legislative commission on pensions and 149.10 retirement, of the amount of the additional retirement annuity 149.11 obtained by the acquisition of the additional service credit in 149.12 this section. Calculation of this amount must be made using the 149.13 preretirement interest rate applicable to the public pension 149.14 plan specified in section 356.215, subdivision4d8, and the 149.15 mortality table adopted for the public pension plan. The 149.16 calculation must assume continuous future service in the public 149.17 pension plan until, and retirement at, the age at which the 149.18 minimum requirements of the fund for normal retirement or 149.19 retirement with an annuity unreduced for retirement at an early 149.20 age, including section 356.30, are met with the additional 149.21 service credit purchased. The calculation must also assume a 149.22 full-time equivalent salary, or actual salary, whichever is 149.23 greater, and a future salary history that includes annual salary 149.24 increases at the applicable salary increase rate for the plan 149.25 specified in section 356.215, subdivision4d8. Payment must be 149.26 made in one lump sum within one year of the prior service credit 149.27 authorization. Payment of the amount calculated under this 149.28 section must be made by the applicable eligible person. 149.29 However, the current employer or the prior employer may, at its 149.30 discretion, pay all or any portion of the payment amount that 149.31 exceeds an amount equal to the employee contribution rates in 149.32 effect during the period or periods of prior service applied to 149.33 the actual salary rates in effect during the period or periods 149.34 of prior service, plus interest at the rate of 8.5 percent a 149.35 year compounded annually from the date on which the 149.36 contributions would otherwise have been made to the date on 150.1 which the payment is made. If the employer agrees to payments 150.2 under thisparagraphsubdivision, the purchaser must make the 150.3 employee payments required under thisparagraphsubdivision 150.4 within 290 days of the prior service credit authorization. If 150.5 that employee payment is made, the employer payment under 150.6 thisparagraphsubdivision must be remitted to the chief 150.7 administrative officer of the public pension plan within 60 days 150.8 of receipt by the chief administrative officer of the employee 150.9 payments specified under thisparagraphsubdivision. 150.10(c)Subd. 3. [DOCUMENTATION.] The prospective purchaser 150.11 must provide any relevant documentation required by the chief 150.12 administrative officer of the public pension plan to determine 150.13 eligibility for the prior service credit under this section. 150.14(d)Subd. 4. [PAYMENT PRECONDITION FOR CREDIT GRANT.] 150.15 Service credit for the purchase period must be granted by the 150.16 public pension plan to the purchaser upon receipt of the 150.17 purchase payment amount specified inparagraph (b)subdivision 2. 150.18 Sec. 42. Minnesota Statutes 2001 Supplement, section 150.19 356.555, is amended to read: 150.20 356.555 [PARENTAL OR FAMILY LEAVE SERVICE CREDIT PURCHASE.] 150.21 Subdivision 1. [SERVICE CREDIT PURCHASE AUTHORIZATION.] 150.22 (a) Notwithstanding any provision to the contrary of the laws 150.23 governing a covered pension plan enumerated in subdivision 4, a 150.24 member of the pension plan who has at least three years of 150.25 allowable service covered by the applicable pension plan and who 150.26 was granted by the employer a parental leave of absence as 150.27 defined in paragraph (b), or who was granted by the employer a 150.28 family leave of absence as defined in paragraph (c), or who had 150.29 a parental or family-related break in employment, as defined in 150.30 paragraph (d), for which the person did not previously receive 150.31 service credit or for which the person did not receive or 150.32 purchase service credit from another defined benefit public 150.33 employee pension plan, is entitled to purchase the actual period 150.34 of the leave or of the break in service, up to five years, of 150.35 allowable service credit in the applicable retirement plan. The 150.36 purchase payment amount is governed by section 356.55. 151.1 (b) For purposes of this section, a parental leave of 151.2 absence is a temporary period of interruption of or separation 151.3 from active employment for the purposes of handling maternity or 151.4 paternity duties that has been approved by the employing unit 151.5 and that includes the right of reinstatement to employment. 151.6 (c) For purposes of this section, a family leave of absence 151.7 is a family leave under United States Code, title 42, section 151.8 12631, as amended. 151.9 (d) For purposes of this section, a parental or 151.10 family-related break in employment is a period following a 151.11 termination of active employment primarily for the purpose of 151.12 the birth of a child, the adoption of a child, or the provision 151.13 of care to a near relative or in-law, after which the person 151.14 returned to the prior employing unit or to an employing unit 151.15 covered by the same pension plan that provided retirement 151.16 coverage immediately prior to the termination of employment. 151.17 Subd. 2. [APPLICATION AND DOCUMENTATION.] (a) A person who 151.18 desires to purchase service credit under subdivision 1 must 151.19 apply for the service credit purchase with the chief 151.20 administrative officer of the enumerated pension plan. 151.21 (b) The application must include all necessary 151.22 documentation of the qualifications of the person to make the 151.23 purchase, signed written permission to allow the chief 151.24 administrative officer to request and receive necessary 151.25 verification of all applicable facts and eligibility 151.26 requirements, and any other relevant information that the chief 151.27 administrative officer may require. 151.28 Subd. 3. [SERVICE CREDIT GRANT.] Allowable and formula 151.29 service credit in the applicable enumerated pension plan for the 151.30 purchase period must be granted to the purchaser upon receipt of 151.31 the purchase payment amount calculated under section 356.55. 151.32 Payment of the purchase amount must be made before the person 151.33 retires. 151.34 Subd. 4. [COVERED PENSION PLANS.] This section applies to 151.35 the following pension plans: 151.36 (1) the general state employees retirement plan governed by 152.1 chapter 352; 152.2 (2) the correctional state employees retirement plan 152.3 governed by chapter 352; 152.4 (3) the generalpublicemployees retirement plan of the 152.5 public employees retirement association governed by chapter 353; 152.6 (4) the public employees police and fire plan governed by 152.7 chapter 353; 152.8 (5) the teachers retirement plan governed by chapter 354; 152.9 (6) the Minneapolis teachers retirement fund association 152.10 governed by chapter 354A; 152.11 (7) the Saint Paul teachers retirement fund association 152.12 governed by chapter 354A; 152.13 (8) the Duluth teachers retirement fund association 152.14 governed by chapter 354A; 152.15 (9) the Minneapolis employees retirement plan governed by 152.16 chapter 422A; 152.17 (10) the Minneapolis police relief association governed by 152.18 chapter 423B; and 152.19 (11) the Minneapolis fire department relief association 152.20 governed by sections 69.25 to 69.53 and augmented by Laws 1959, 152.21 chapters 213, 491, and 568, and other special local legislation. 152.22 COVERED SALARY LIMITATION 152.23 Sec. 43. Minnesota Statutes 2000, section 356.611, is 152.24 amended to read: 152.25 356.611 [LIMITATION ON PUBLIC EMPLOYEE SALARIES FOR PENSION 152.26 PURPOSES.] 152.27 Subdivision 1. [STATE SALARY LIMITATIONS.] (a) 152.28 Notwithstanding any provision of law, bylaws, articles of 152.29 incorporation, retirement and disability allowance plan 152.30 agreements, or retirement plan contracts to the contrary, the 152.31 covered salary for pension purposes for a plan participant of a 152.32 covered retirement fundunderenumerated in section 356.30, 152.33 subdivision 3, may not exceed 95 percent of the salary 152.34 established for the governor under section 15A.082 at the time 152.35 the person received the salary. 152.36 (b) This section does not apply to a salary paid: 153.1 (1) to the governor; 153.2 (2) to an employee of a political subdivision in a position 153.3 that is excluded from the limit as specified under section 153.4 43A.17, subdivision 9; or 153.5 (3) to a state employee in a position for which the 153.6 commissioner of employee relations has approved a salary rate 153.7 that exceeds 95 percent of the governor's salary. 153.8 (c) The limited covered salary determined under this 153.9 section must be used in determining employee and employer 153.10 contributions and in determining retirement annuities and other 153.11 benefits under the respective covered retirement fund and under 153.12 this chapter. 153.13 Subd. 2. [FEDERAL COMPENSATION LIMITS.] For members first 153.14 contributing to a covered pension plancovered underenumerated 153.15 in section 356.30, subdivision 3, on or after July 1, 1995, 153.16 compensation in excess of the limitation set forth in Internal 153.17 Revenue Code 401(a)(17)shallmay not be included for 153.18 contribution and benefit computation purposes. The compensation 153.19 limit set forth in Internal Revenue Code 401(a)(17) on June 30, 153.20 1993,shall applyapplies to members first contributing before 153.21 July 1, 1995. 153.22 MEMBER CONTRIBUTION EMPLOYER PICK-UP 153.23 Sec. 44. Minnesota Statutes 2001 Supplement, section 153.24 356.62, is amended to read: 153.25 356.62 [PAYMENT OF EMPLOYEE CONTRIBUTION.] 153.26 (a) For purposes of any public pension plan, as defined in 153.27 section 365.615, paragraph (b), each employer shall pick up the 153.28 employee contributions required pursuant to law or the pension 153.29 plan for all salary payable after December 31, 1982. If the 153.30 United States Treasury department rules thatpursuant tounder 153.31 section 414(h) of the Internal Revenue Code of 1986, as amended 153.32 through December 31, 1992, that these picked up contributions 153.33 are not includable in the employee's adjusted gross income until 153.34 they are distributed or made available, then these picked up 153.35 contributionsshallmust be treated as employer contributions in 153.36 determining tax treatmentpursuant tounder the Internal Revenue 154.1 Code of 1986, as amended through December 31, 1992, and the 154.2 employer shall discontinue withholding federal income taxes on 154.3 the amount of these contributions. The employer shall pay these 154.4 picked up contributions from the same source of funds as is used 154.5 to pay the salary of the employee. The employer shall pick up 154.6 these employee contributions by a reduction in the cash salary 154.7 of the employee. 154.8 (b) Employee contributions that are picked upshallmust be 154.9 treated for all purposes of the public pension plan in the same 154.10 manner and to the same extent as employee contributions that 154.11 were made prior to the date on which the employee contributions 154.12 pick up began. The amount of the employee contributions that 154.13 are picked upshallmust be included in the salary upon which 154.14 retirement coverage is credited and retirement and survivor's 154.15 benefits are determined. For purposes of this section, 154.16 "employee" means any person covered by a public pension plan. 154.17 For purposes of this section, "employee contributions" include 154.18 any sums deducted from the employee's salary or wages or 154.19 otherwise paid in lieu thereof, regardless of whether they are 154.20 denominated contributions by the public pension plan. 154.21 (c) For any calendar year in which withholding has been 154.22 reducedpursuant tounder this section, the employing unit shall 154.23 supply each employee and the commissioner of revenue with an 154.24 information return indicating the amount of the employer's 154.25 picked-up contributions for the calendar year that were not 154.26 subject to withholding. This returnshallmust be provided to 154.27 the employee not later than January 31 of the succeeding 154.28 calendar year. The commissioner of revenue shall prescribe the 154.29 form of the return and the provisions of section 289A.12shall154.30 apply to the extent not inconsistent with the provisions of this 154.31 section. 154.32 PENSION ASSET AND INVESTMENT 154.33 LIMITATIONS 154.34 Sec. 45. [356.63] [LIMITATION ON USE OF PUBLIC PENSION 154.35 PLAN ASSETS.] 154.36 (a) Money held by or credited to a public pension plan as 155.1 assets, including employer and employee contributions, state 155.2 aid, appropriations from the state or a governmental 155.3 subdivision, and accrued earnings on investments, constitutes a 155.4 dedicated fund. The dedicated fund may be used exclusively to 155.5 pay retirement annuities, service pensions, disability benefits, 155.6 survivor benefits, refunds of contributions, or other benefits 155.7 provided under the benefit plan document or documents governing 155.8 the public pension plan, and to pay reasonable administrative 155.9 expenses approved by the governing board of the public pension 155.10 plan or by another appropriate authority. No assets of a public 155.11 pension plan may be loaned or transferred to the state or a 155.12 governmental subdivision or be used to amortize an unfunded 155.13 actuarial accrued liability in another public pension plan or 155.14 fund, whether or not the plan providing the assets consolidates 155.15 or has consolidated with the plan receiving the assets. Nothing 155.16 in this section prohibits a public pension plan or the state 155.17 board of investment from investing the assets of a plan as 155.18 authorized by law, including the investment of the assets of 155.19 public pension plans by the state board of investment in a 155.20 commingled investment fund. 155.21 (b) A public pension plan for purposes of this section 155.22 means a pension plan or fund specified in section 356.20, 155.23 subdivision 2, or 356.30, subdivision 3, or a retirement or 155.24 pension plan or fund, including a supplemental retirement plan 155.25 or fund, established, maintained, or supported by a governmental 155.26 subdivision or public body whose revenues are derived from 155.27 taxation, fees, assessments, or other public sources. 155.28 Sec. 46. [356.64] [REAL ESTATE INVESTMENTS.] 155.29 (a) Notwithstanding any law to the contrary, any public 155.30 pension plan whose assets are not invested by the state board of 155.31 investment may invest its funds in Minnesota situs nonfarm real 155.32 estate ownership interests or loans secured by mortgages or 155.33 deeds of trust if the investment is consistent with section 155.34 356A.04. 155.35 (b) Except to the extent authorized in the case of the 155.36 Minneapolis employees retirement fund under section 422A.05, 156.1 subdivision 2c, paragraph (a), an investment otherwise 156.2 authorized by this section must also comply with the 156.3 requirements and limitations of section 11A.24, subdivision 6. 156.4 ABANDONED PENSION FUND AMOUNTS 156.5 Sec. 47. Minnesota Statutes 2001 Supplement, section 156.6 356.65, subdivision 1, is amended to read: 156.7 Subdivision 1. [DEFINITIONS.] For purposes of this 156.8 section, unless the context clearly indicates otherwise, each of 156.9 the following termsshall havehas themeaningsmeaning given to 156.10themit: 156.11 (a) "Public pension fund" means any public pension plan as 156.12 defined in section 356.615, paragraph (b), and any Minnesota 156.13 volunteer firefighters relief association which is established 156.14pursuant tounder chapter 424A and governedpursuant tounder 156.15 sections 69.771 to 69.776. 156.16 (b) "Unclaimed public pension fund amounts" means any 156.17 amounts representing accumulated member contributions, any 156.18 outstanding unpaid annuity, service pension or other retirement 156.19 benefit payments, including those made on warrants issued by the 156.20 commissioner of finance, which have been issued and delivered 156.21 for more than six months prior to the date of the end of the 156.22 fiscal year applicable to the public pension fund, and any 156.23 applicable interest to the credit of: 156.24 (1) an inactive or former member of a public pension fund 156.25 who is not entitled to a defined retirement annuity and who has 156.26 not applied for a refund of those amounts within five years 156.27 after the last member contribution was made; or 156.28 (2) a deceased inactive or former member of a public 156.29 pension fund if no survivor is entitled to a survivor benefit 156.30 and no survivor, designated beneficiary or legal representative 156.31 of the estate has applied for a refund of those amounts within 156.32 five years after the date of death of the inactive or former 156.33 member. 156.34 Sec. 48. Minnesota Statutes 2000, section 356.65, 156.35 subdivision 2, is amended to read: 156.36 Subd. 2. [DISPOSITION OF ABANDONED AMOUNTS.] Any unclaimed 157.1 public pension fund amounts existing in any public pension 157.2 fundshall beare presumed to be abandoned, butshallare not 157.3besubject to the provisions of sections 345.31 to 345.60. 157.4 Unless the benefit plan of the public pension fund specifically 157.5 provides for a different disposition of unclaimed or abandoned 157.6 funds or amounts, any unclaimed public pension fund 157.7 amountsshallcancel andshallmust be credited to the public 157.8 pension fund. If the unclaimed public pension fund amount 157.9 exceeds $25 and the inactive or former member again becomes a 157.10 member of the applicable public pensionfundplan or applies for 157.11 a retirement annuitypursuant tounder section 3A.12, 352.72, 157.12 352B.30, 352C.051, 353.71, 354.60, 356.30, or 422A.16, 157.13 subdivision 8, whicheveris applicable,applies, the canceled 157.14 amountshallmust be restored to the credit of the person. 157.15 HEALTH INSURANCE WITHHOLDING 157.16 Sec. 49. Minnesota Statutes 2000, section 356.87, is 157.17 amended to read: 157.18 356.87 [HEALTH INSURANCE WITHHOLDING.] 157.19 (a) Upon authorization of a person entitled to receive a 157.20 retirement annuity, disability benefit or survivor benefit, the 157.21 executive director of a public pension fundlistedenumerated in 157.22 section 356.20, subdivision 2, shall withhold health insurance 157.23 premium amounts from the retirement annuity, disability benefit 157.24 or survivor benefit, and shall pay the premium amounts to the 157.25 public employees insurance program. 157.26 (b) The public employees insurance program shall reimburse 157.27 a public pension fund for the administrative expense of 157.28 withholding the premium amounts and shall assume liability for 157.29 the failure of a public pension fund to properly withhold the 157.30 premium amounts. 157.31 RETIREMENT PLAN 157.32 ADMINISTRATION 157.33 Sec. 50. [356B.05] [PUBLIC PENSION ADMINISTRATION 157.34 LEGISLATION.] 157.35 (a) Proposed administrative legislation recommended by or 157.36 on behalf of the Minnesota state retirement system, the public 158.1 employees retirement association, the teachers retirement 158.2 association, the Minneapolis employees retirement fund, or a 158.3 first class city teachers retirement fund association must be 158.4 presented to the legislative commission on pensions and 158.5 retirement, the state and local government operations committee 158.6 of the senate, and the governmental operations and veterans 158.7 affairs policy committee of the house of representatives on or 158.8 before October 1 of each year in order for the proposed 158.9 administrative legislation to be acted upon during the upcoming 158.10 legislative session. The executive director or the deputy 158.11 executive director of the legislative commission on pensions and 158.12 retirement shall provide written comments on the proposed 158.13 provisions to the public pension plans by November 15 of each 158.14 year. 158.15 (b) Proposed administrative legislation recommended by or 158.16 on behalf of a public employee pension plan or system under 158.17 paragraph (a) must address provisions: 158.18 (1) authorizing allowable service credit for leaves of 158.19 absence and related circumstances; 158.20 (2) governing offsets or deductions from the amount of 158.21 disability benefits; 158.22 (3) authorizing the purchase of allowable service credit 158.23 for prior uncredited periods; 158.24 (4) governing subsequent employment earnings by reemployed 158.25 annuitants; and 158.26 (5) authorizing retroactive effect for retirement annuity 158.27 or benefit applications. 158.28 (c) Where possible and desirable, taking into account the 158.29 differences among the public pension plans in existing law and 158.30 the unique characteristics of the individual public pension fund 158.31 memberships, uniform provisions relating to paragraph (b) for 158.32 all applicable public pension plans must be presented for 158.33 consideration during the legislative session. Supporting 158.34 documentation setting forth the policy rationale for each set of 158.35 uniform provisions must accompany the proposed administrative 158.36 legislation. 159.1 Sec. 51. [356B.10] [PUBLIC PENSION FACILITIES.] 159.2 Subdivision 1. [DEFINITIONS.] (a) The definitions in this 159.3 subdivision apply to this section. 159.4 (b) "Boards" mean the board of directors of the Minnesota 159.5 state retirement system, the board of trustees of the public 159.6 employees retirement association, and the board of trustees of 159.7 the teachers retirement association. 159.8 (c) "Commissioner" means the commissioner of administration. 159.9 Subd. 2. [BUILDING; RELATED FACILITIES.] (a) The 159.10 commissioner of administration may provide a building and 159.11 related facilities to be jointly occupied by the board of 159.12 directors of the Minnesota state retirement system, the board of 159.13 trustees of the public employees retirement association, and the 159.14 board of trustees of the teachers retirement association for the 159.15 administration of their public pension systems. 159.16 (b) Design of the facilities is not subject to section 159.17 16B.33. The competitive acquisition process set forth in 159.18 chapter 16C does not apply if the process set forth in 159.19 subdivision 3 is followed. 159.20 (c) The boards and the commissioner must submit the plans 159.21 for a public pension facility under this section to the chair of 159.22 the house ways and means committee and to the chair of the 159.23 senate state government finance committee for their approval 159.24 before the plans are implemented. 159.25 Subd. 3. [CONTRACTING PROCEDURES.] (a) The commissioner 159.26 may enter into a contract for facilities with a contractor to 159.27 furnish the architectural, engineering, and related services as 159.28 well as the labor, materials, supplies, equipment, and related 159.29 construction services on the basis of a request for 159.30 qualifications and competitive responses received through a 159.31 request for proposals process that must include the items listed 159.32 in paragraphs (b) to (i). 159.33 (b) Before issuing a request for qualifications and a 159.34 request for proposals, the commissioner, with the assistance of 159.35 the boards, shall prepare performance criteria and 159.36 specifications that include: 160.1 (1) a general floor plan or layout indicating the general 160.2 dimensions of the public building and space requirements; 160.3 (2) design criteria for the exterior and site area; 160.4 (3) performance specifications for all building systems and 160.5 components to ensure quality and cost efficiencies; 160.6 (4) conceptual floor plans for systems space; 160.7 (5) preferred types of interior finishes, styles of 160.8 windows, lighting and outlets, doors, and features such as 160.9 built-in counters and telephone wiring; 160.10 (6) mechanical and electrical requirements; 160.11 (7) special interior features required; and 160.12 (8) a completion schedule. 160.13 (c) The commissioner shall first solicit statements of 160.14 qualifications from eligible contractors and select more than 160.15 one qualified contractor based upon experience, technical 160.16 competence, past performance, capability to perform, and other 160.17 appropriate facts. Contractors selected under this process must 160.18 be, employ, or have as a partner, member, coventurer, or 160.19 subcontractor, persons licensed and registered under chapter 326 160.20 to provide the services required to design and complete the 160.21 project. The commissioner does not have to select any of the 160.22 respondents if none reasonably fulfill the criteria set forth in 160.23 this paragraph. 160.24 (d) The contractors selected shall be asked to respond to a 160.25 request for proposals. Responses must include site plans, 160.26 design concept, elevation, statement of material to be used, 160.27 floor layouts, a detailed development budget, and a total cost 160.28 to complete the project. The proposal must indicate that the 160.29 contractor obtained at least two proposals from subcontractors 160.30 for each item of work and must set forth how the subcontractors 160.31 were selected. The commissioner, with the assistance of the 160.32 boards, shall evaluate the proposals based upon design, cost, 160.33 quality, aesthetics, and the best overall value to the state 160.34 pension funds. The commissioner need not select any of the 160.35 proposals submitted and reserves the right to reject any and all 160.36 proposals, and may terminate the process or revise the request 161.1 for proposals and solicit new proposals if the commissioner 161.2 determines that the best interests of the pension funds would be 161.3 better served by doing so. Proposals submitted are nonpublic 161.4 data until the contract is awarded. 161.5 (e) The contractor selected must comply with sections 161.6 574.26 to 574.261. Before executing a final contract, the 161.7 contractor selected shall certify a firm construction price and 161.8 completion date. 161.9 (f) The commissioner may consider building sites in the 161.10 city of St. Paul and surrounding suburbs. 161.11 (g) Any land, building, or facility leased, constructed, or 161.12 acquired and any leasehold interest acquired under this section 161.13 must be held by the state in trust for the three retirement 161.14 systems as tenants in common. Each retirement system fund must 161.15 consider its interest as a fixed asset of its pension fund in 161.16 accordance with governmental accounting standards. 161.17 (h) The commissioner may lease to another governmental 161.18 subdivision, or to a private company under contract with the 161.19 state board of investment or with the board of directors of the 161.20 Minnesota state retirement system, whichever applies, to provide 161.21 deferred compensation services under section 352.96, any portion 161.22 of the funds' building and lands that is not required for their 161.23 direct use upon terms and conditions they deem to be in the best 161.24 interest of the pension funds. Any income accruing from the 161.25 rentals must be separately accounted for and utilized to offset 161.26 ongoing administrative expenses and any excess must be carried 161.27 forward for future administrative expenses. The commissioner 161.28 may also enter into lease agreements for the establishment of 161.29 satellite offices should the boards find them to be necessary in 161.30 order to assure their members reasonable access to their 161.31 services. The commissioner may lease under section 16B.24 any 161.32 portion of the facilities not required for the direct use of the 161.33 boards. 161.34 (i) The boards shall formulate and adopt a written working 161.35 agreement that sets forth the nature of each retirement system's 161.36 ownership interest, the duties and obligations of each system 162.1 toward the construction, operation, and maintenance costs of its 162.2 facilities, and identifies one retirement fund to serve as 162.3 manager for operating and maintenance purposes. The boards may 162.4 contract with independent third parties for maintenance-related 162.5 activities, services, and supplies, and may use the services of 162.6 the department of administration where economically feasible to 162.7 do so. If the boards cannot agree or resolve a dispute about 162.8 operations or maintenance of the facilities, they may request 162.9 the commissioner of administration to appoint a representative 162.10 from the department's real estate management division to serve 162.11 as arbitrator of the dispute with authority to issue a written 162.12 resolution of the dispute. 162.13 Subd. 4. [REVENUE BONDS.] The commissioner of finance, on 162.14 request of the governor, may sell and issue revenue bonds in an 162.15 aggregate principal amount up to $38,000,000 to achieve the 162.16 purposes described in subdivisions 1 and 2, plus the amount 162.17 needed to pay issuance costs and interest costs and to establish 162.18 necessary reserves to secure the bonds. The commissioner of 162.19 finance may issue bonds for the purpose of refunding bonds 162.20 issued under this subdivision. The bonds may be sold and issued 162.21 on terms and in a manner the commissioner of finance determines 162.22 to be in the best interests of the state. The proceeds of the 162.23 bonds must be credited to a bond proceeds account in the pension 162.24 building fund which the commissioner of finance must create in 162.25 the state treasury. 162.26 Subd. 5. [SECURITY.] The boards may pledge any or all 162.27 assets of the boards as security for the bonds. The bonds and 162.28 the interest on them must be paid solely from and secured by all 162.29 assets of the boards pledged and appropriated for these purposes 162.30 to the debt service fund created in subdivision 6 and any 162.31 investment income on it and any reserve established for this 162.32 purpose. The bonds are not public debt, and the full faith, 162.33 credit, and taxing powers of the state are not pledged for their 162.34 payment. The bonds and the interest on them must not be paid, 162.35 directly or indirectly, in whole or in part, from a tax of 162.36 statewide application on any class of property, income, 163.1 transaction, or privilege. 163.2 Subd. 6. [DEBT SERVICE FUND.] There is established in the 163.3 state treasury a separate and special pension building debt 163.4 service fund. Money in the funds managed by the boards is 163.5 appropriated to the boards for transfer to the pension building 163.6 debt service fund. Money appropriated and transferred to the 163.7 fund and investment income on it on hand or required to be 163.8 transferred to the fund must be used and is irrevocably 163.9 appropriated to pay when due the principal of and interest on 163.10 the bonds authorized in subdivision 4. 163.11 Subd. 7. [COVENANTS; AGREEMENTS.] The commissioner of 163.12 finance may, for and on behalf of the state, enter into 163.13 covenants and agreements not inconsistent with subdivisions 1 to 163.14 6 as may be necessary or desirable to facilitate the sale and 163.15 issuance of the bonds on terms favorable to the state, 163.16 including, but not limited to, covenants and agreements relating 163.17 to the payment of and security for the bonds, tax exemption, and 163.18 disclosure of information required by federal and state 163.19 securities laws. The covenants and agreements of the 163.20 commissioner of finance constitute an enforceable contract of 163.21 the state and the state pledges and agrees with the holders of 163.22 any bonds that the state will not limit or alter the rights 163.23 vested in the commissioner of finance to fulfill the terms of 163.24 the covenants or agreements made with the holders of the bonds, 163.25 or in any way impair the rights and remedies of the holders 163.26 until the bonds, together with the interest on them, with 163.27 interest on any unpaid installments of interest, and all costs 163.28 and expenses in connection with any action or proceeding by or 163.29 on behalf of the holders, are fully met and discharged. The 163.30 commissioner of finance may include this pledge and agreement of 163.31 the state in any covenant or agreement with the holders of the 163.32 bonds. Sections 16A.672 and 16A.675 apply to the bonds. 163.33 Sec. 52. [CROSS-REFERENCE CHANGES.] 163.34 In the next and subsequent editions of Minnesota Statutes, 163.35 the revisor of statutes shall, in each section indicated in 163.36 column A, replace the cross-reference specified in column B with 164.1 the cross-reference set forth in column C: 164.2 column A column B column C 164.3 3.751, subd. 1 356.89 356B.10 164.4 3A.02, subd. 1 356.215, subd. 4d 356.215, subd. 8 164.5 3A.02, subd. 4 356.215, subd. 4d 356.215, subd. 8 164.6 3A.11, subd. 1 356.215, subd. 4d 356.215, subd. 8 164.7 11A.18, subd. 6 356.215, subd. 4d 356.215, subd. 8 164.8 11A.18, subd. 9 356.215, subd. 4d 356.215, subd. 8 164.9 11A.18, subd. 11 356.215, subd. 4d 356.215, subd. 8 164.10 13.631, subd. 2 356.80 356.49 164.11 69.77, subd. 2b 356.215, subds. 4 356.215, subds. 4 to 15 164.12 to 4k 164.13 69.77, subd. 2b 356.215, subd. 4d 356.215, subd. 8 164.14 69.773, subd. 2 356.215, subd. 4d 356.215, subd. 8 164.15 69.773, subd. 4 356.215, subd. 4d 356.215, subd. 8 164.16 352.01, subd. 12 356.215, subd. 4d 356.215, subd. 8 164.17 352.115, subd. 3 356.119, subd. 1 356.315, subd. 1 164.18 352.115, subd. 3 356.119, subd. 2 356.315, subd. 2 164.19 352.115, subd. 10 356.58 356.47 164.20 352.119, subd. 2 356.215, subd. 4d 356.215, subd. 8 164.21 352.72, subd. 2 356.215, subd. 4d 356.215, subd. 8 164.22 352.87, subd. 3 356.119, subd. 2a 356.315, subd. 2a 164.23 352.91, subd. 5 356.215, subd. 4d 356.215, subd. 8 164.24 352.93, subd. 2 356.119, subd. 5 356.315, subd. 5 164.25 352.95, subd. 1 356.119, subd. 5 356.315, subd. 5 164.26 352B.08, subd. 2 356.119, subd. 6 356.315, subd. 6 164.27 352B.08, subd. 3 356.215, subd. 4d 356.215, subd. 8 164.28 352B.10, subd. 1 356.119, subd. 6 356.315, subd. 6 164.29 352B.26, subd. 3 356.215, subd. 4d 356.215, subd. 8 164.30 352B.30, subd. 4 356.215, subd. 4d 356.215, subd. 8 164.31 352C.031, subd. 4 356.215, subd. 4d 356.215, subd. 8 164.32 352C.033 356.215, subd. 4d 356.215, subd. 8 164.33 353.01, subd. 14 356.215, subd. 4d 356.215, subd. 8 164.34 353.03, subd. 3 356.215, subd. 4, 356.215, subd. 8 164.35 clause (4) 164.36 353.271, subd. 2 356.215, subd. 4d 356.215, subd. 8 165.1 353.29, subd. 3 356.119, subd. 3 356.315, subd. 3 165.2 353.29, subd. 3 356.119, subd. 4 356.315, subd. 4 165.3 353.29, subd. 3 356.119, subd. 1 356.315, subd. 1 165.4 353.29, subd. 3 356.119, subd. 2 356.315, subd. 2 165.5 353.29, subd. 4 356.371, subd. 3 356.46, subd. 3 165.6 353.37, subd. 3a 356.58 356.47 165.7 353.651, subd. 3 356.119, subd. 6 356.315, subd. 6 165.8 353.656, subd. 1 356.119, subd. 6 356.315, subd. 6 165.9 353.665, subd. 8 356.215, subd. 4d 356.215, subd. 8 165.10 353.71, subd. 2 356.215, subd. 4d 356.215, subd. 8 165.11 353A.08, subd. 1 356.215, subd. 4d 356.215, subd. 8 165.12 353A.08, subd. 2 356.215, subd. 4d 356.215, subd. 8 165.13 353A.09, subd. 2 356.215, subd. 4d 356.215, subd. 8 165.14 353A.09, subd. 5 356.215, subd. 4d 356.215, subd. 8 165.15 353E.04, subd. 3 356.119, subd. 5a 356.315, subd. 5a 165.16 353E.06, subd. 1 356.119, subd. 5a 356.315, subd. 5a 165.17 354.05, subd. 7 356.215, subd. 4d 356.215, subd. 8 165.18 354.07, subd. 1 356.215, subd. 4d 356.215, subd. 8 165.19 354.44, subd. 2 356.215, subd. 4d 356.215, subd. 8 165.20 354.44, subd. 5 356.58 356.47 165.21 354.44, subd. 6 356.119, subd. 1 356.315, subd. 1 165.22 354.44, subd. 6 356.119, subd. 2 356.315, subd. 2 165.23 354.44, subd. 6 356.119, subd. 3 356.315, subd. 3 165.24 354.44 356.119 356.315 165.25 354.45, subd. 2 356.215, subd. 4d 356.215, subd. 8 165.26 354.48, subd. 3 356.215, subd. 4d 356.215, subd. 8 165.27 354.55, subd. 11 356.215, subd. 4d 356.215, subd. 8 165.28 354.63, subd. 2 356.215, subd. 4d 356.215, subd. 8 165.29 354A.011, subd. 3 356.215, subd. 4d 356.215, subd. 8 165.30 354A.026 356.215, subd. 4g 356.215, subd. 11 165.31 354A.105 356.215, subd. 4d 356.215, subd. 8 165.32 354A.12, subd. 1a 356.215, subd. 4d 356.215, subd. 8 165.33 354A.31, subd. 1a 356.371, subd. 3 356.46, subd. 3 165.34 354A.31, subd. 3 356.58 356.47 165.35 354A.31, subd. 4 356.119, subd. 1 356.315, subd. 1 165.36 354A.31, subd. 4 356.119, subd. 2 356.315, subd. 2 166.1 354A.31, subd. 4a 356.119, subd. 1 356.315, subd. 1 166.2 354A.31, subd. 4a 356.119, subd. 2 356.315, subd. 2 166.3 354A.34 356.215, subd. 4d 356.215, subd. 8 166.4 422A.01, subd. 6 356.215, subd. 4d 356.215, subd. 8 166.5 422A.06, subd. 5 356.215, subd. 4d 356.215, subd. 8 166.6 422A.08, subd. 5a 356.215, subd. 4d 356.215, subd. 8 166.7 422A.101, subd. 3 356.865 356.43 166.8 422A.15, subd. 2 356.215, subd. 4d 356.215, subd. 8 166.9 422A.15, subd. 3 356.215, subd. 4d 356.215, subd. 8 166.10 422A.16, subd. 2 356.215, subd. 4d 356.215, subd. 8 166.11 422A.17 356.215, subd. 4d 356.215, subd. 8 166.12 422A.23, subd. 12 356.215, subd. 4d 356.215, subd. 8 166.13 423A.02, subd. 1 356.215, subd. 4, 356.215, subd. 8 166.14 clause (4) 166.15 490.121, subd. 20 356.215, subd. 4d 356.215, subd. 8 166.16 490.121, subd. 22 356.119, subd. 7 356.315, subd. 7 166.17 490.124, subd. 1 356.119, subd. 7 356.315, subd. 7 166.18 490.124, subd. 1 356.119, subd. 8 356.315, subd. 8 166.19 490.124, subd. 5 356.215, subd. 4d 356.215, subd. 8 166.20 Sec. 53. [REPEALER.] 166.21 Subdivision 1. [REPEALER OF OBSOLETE 166.22 PROVISIONS.] Minnesota Statutes 2000, sections 356.325; 356.35; 166.23 356.36; 356.37; 356.38; 356.39; 356.45; 356.451; 356.452; 166.24 356.453; 356.454; and 356.455, are repealed. 166.25 Subd. 2. [REPEALER OF PROVISIONS REORGANIZED.] (a) 166.26 Minnesota Statutes 2000, sections 356.19; 356.305; 356.306; 166.27 356.31; 356.371, subdivisions 2 and 3; 356.372; 356.615; 356.71; 166.28 356.80; 356.81; 356.86; 356.865; 356.88; and 356.89, are 166.29 repealed. 166.30 (b) Minnesota Statutes 2001 Supplement, sections 356.371, 166.31 subdivision 1; and 356.866, are repealed. 166.32 Subd. 3. [REPEALER TO RESOLVE REVISOR NOTE.] Laws 1997, 166.33 chapter 233, article 1, section 58, is repealed. 166.34 Sec. 54. [EFFECTIVE DATE.] 166.35 Sections 1 to 53 are effective July 1, 2002. 166.36 ARTICLE 11 167.1 JOINT RETIREMENT PLAN 167.2 BUILDING LEASE AUTHORITY 167.3 Section 1. Minnesota Statutes 2000, section 356.89, 167.4 subdivision 3, is amended to read: 167.5 Subd. 3. [CONTRACTING PROCEDURES.] (a) The commissioner 167.6 may enter into a contract for facilities with a contractor to 167.7 furnish the architectural, engineering, and related services as 167.8 well as the labor, materials, supplies, equipment, and related 167.9 construction services on the basis of a request for 167.10 qualifications and competitive responses received through a 167.11 request for proposals process that must include the items listed 167.12 in paragraphs (b) to (i). 167.13 (b) Before issuing a request for qualifications and a 167.14 request for proposals, the commissioner, with the assistance of 167.15 the boards, shall prepare performance criteria and 167.16 specifications that include: 167.17 (1) a general floor plan or layout indicating the general 167.18 dimensions of the public building and space requirements; 167.19 (2) design criteria for the exterior and site area; 167.20 (3) performance specifications for all building systems and 167.21 components to ensure quality and cost efficiencies; 167.22 (4) conceptual floor plans for systems space; 167.23 (5) preferred types of interior finishes, styles of 167.24 windows, lighting and outlets, doors, and features such as 167.25 built-in counters and telephone wiring; 167.26 (6) mechanical and electrical requirements; 167.27 (7) special interior features required; and 167.28 (8) a completion schedule. 167.29 (c) The commissioner shall first solicit statements of 167.30 qualifications from eligible contractors and select more than 167.31 one qualified contractor based upon experience, technical 167.32 competence, past performance, capability to perform, and other 167.33 appropriate facts. Contractors selected under this process must 167.34 be, employ, or have as a partner, member, coventurer, or 167.35 subcontractor, persons licensed and registered under chapter 326 167.36 to provide the services required to design and complete the 168.1 project. The commissioner does not have to select any of the 168.2 respondents if none reasonably fulfill the criteria set forth in 168.3 this paragraph. 168.4 (d) The contractors selected shall be asked to respond to a 168.5 request for proposals. Responses must include site plans, 168.6 design concept, elevation, statement of material to be used, 168.7 floor layouts, a detailed development budget, and a total cost 168.8 to complete the project. The proposal must indicate that the 168.9 contractor obtained at least two proposals from subcontractors 168.10 for each item of work and must set forth how the subcontractors 168.11 were selected. The commissioner, with the assistance of the 168.12 boards, shall evaluate the proposals based upon design, cost, 168.13 quality, aesthetics, and the best overall value to the state 168.14 pension funds. The commissioner need not select any of the 168.15 proposals submitted and reserves the right to reject any and all 168.16 proposals, and may terminate the process or revise the request 168.17 for proposals and solicit new proposals if the commissioner 168.18 determines that the best interests of the pension funds would be 168.19 better served by doing so. Proposals submitted are nonpublic 168.20 data until the contract is awarded. 168.21 (e) The contractor selected must comply with sections 168.22 574.26 to 574.261. Before executing a final contract, the 168.23 contractor selected shall certify a firm construction price and 168.24 completion date. 168.25 (f) The commissioner may consider building sites in the 168.26 city of St. Paul and surrounding suburbs. 168.27 (g) Any land, building, or facility leased, constructed, or 168.28 acquired and any leasehold interest acquired under this section 168.29 must be held by the state in trust for the three retirement 168.30 systems as tenants in common. Each retirement system fund must 168.31 consider its interest as a fixed asset of its pension fund in 168.32 accordance with governmental accounting standards. 168.33 (h) The commissioner may lease to another governmental 168.34 subdivision, or to a private company under contract with the 168.35 state board of investment or with the board of directors of the 168.36 Minnesota state retirement system, whichever applies, to provide 169.1 deferred compensation services under section 352.96, any portion 169.2 of the funds' building and lands that is not required for their 169.3 direct use upon terms and conditions they deem to be in the best 169.4 interest of the pension funds. Any income accruing from the 169.5 rentals must be separately accounted for and utilized to offset 169.6 ongoing administrative expenses and any excess must be carried 169.7 forward for future administrative expenses. The commissioner 169.8 may also enter into lease agreements for the establishment of 169.9 satellite offices should the boards find them to be necessary in 169.10 order to assure their members reasonable access to their 169.11 services. The commissioner may lease under section 16B.24 any 169.12 portion of the facilities not required for the direct use of the 169.13 boards. 169.14 (i) The boards shall formulate and adopt a written working 169.15 agreement that sets forth the nature of each retirement system's 169.16 ownership interest, the duties and obligations of each system 169.17 toward the construction, operation, and maintenance costs of its 169.18 facilities, and identifies one retirement fund to serve as 169.19 manager for operating and maintenance purposes. The boards may 169.20 contract with independent third parties for maintenance-related 169.21 activities, services, and supplies, and may use the services of 169.22 the department of administration where economically feasible to 169.23 do so. If the boards cannot agree or resolve a dispute about 169.24 operations or maintenance of the facilities, they may request 169.25 the commissioner of administration to appoint a representative 169.26 from the department's real estate management division to serve 169.27 as arbitrator of the dispute with authority to issue a written 169.28 resolution of the dispute. 169.29 Sec. 2. [EFFECTIVE DATE.] 169.30 Section 1 is effective July 1, 2002. 169.31 ARTICLE 12 169.32 VOLUNTEER FIREFIGHTER RELIEF 169.33 ASSOCIATIONS SERVICE PENSION ELIGIBILITY 169.34 Section 1. Minnesota Statutes 2000, section 424A.02, 169.35 subdivision 1, is amended to read: 169.36 Subdivision 1. [AUTHORIZATION.] (a) A relief association, 170.1 when its articles of incorporation or bylaws so provide, may pay 170.2 out of the assets of its special fund a service pension to each 170.3 of its members who: (1) separates from active service with the 170.4 fire department; (2) reaches age 50; (3) completes at least five 170.5 years of active service as an active member of the municipal 170.6 fire department to which the relief association is associated; 170.7 (4) completes at least five years of active membership with the 170.8 relief association before separation from active service; and 170.9 (5) complies with any additional conditions as to age, service, 170.10 and membership that are prescribed by the bylaws of the relief 170.11 association. A service pension computed under this section may 170.12 be prorated monthly for fractional years of service, if the 170.13 bylaws or articles of incorporation of the relief association so 170.14 provide. The service pension may be paid whether or not the 170.15 municipality or nonprofit firefighting corporation to which the 170.16 relief association is associated qualifies for fire state aid 170.17 under chapter 69. 170.18 (b) In the case of a member who has completed at least five 170.19 years of active service as an active member of the fire 170.20 department to which the relief association is associated on the 170.21 date that the relief association is established and 170.22 incorporated, the requirement that the member complete at least 170.23 five years of active membership with the relief association 170.24 before separation from active service may be waived by the board 170.25 of trustees of the relief association if the member completes at 170.26 least five years of inactive membership with the relief 170.27 association before the payment of the service pension. During 170.28 the period of inactive membership, the member is not entitled to 170.29 receive disability benefit coverage, is not entitled to receive 170.30 additional service credit towards computation of a service 170.31 pension, and is considered to have the status of a person 170.32 entitled to a deferred service pension under subdivision 7. 170.33 (c) No municipality or nonprofit firefighting corporation 170.34 may delegate the power to take final action in setting a service 170.35 pension or ancillary benefit amount or level to the board of 170.36 trustees of the relief association or to approve in advance a 171.1 service pension or ancillary benefit amount or level equal to 171.2 the maximum amount or level that this chapter would allow rather 171.3 than a specific dollar amount or level. 171.4 (d) No relief association as defined in section 424A.001, 171.5 subdivision 4, may pay a service pension or disability benefit 171.6 to a former member of the relief association if that person has 171.7 not separated from active service with the fire department to 171.8 which the relief association is directly associated, unless: 171.9 (1) the person is employed subsequent to retirement by the 171.10 municipality or independent nonprofit firefighting corporation, 171.11 whichever applies, to perform duties within the municipal fire 171.12 department or corporation on a full-time basis; 171.13 (2) the governing body of the municipality or of the 171.14 corporation has filed its determination with the board of 171.15 trustees of the relief association that the person's experience 171.16 with and service to the fire department in that person's 171.17 full-time capacity would be difficult to replace; and 171.18 (3) the bylaws of the relief association were amended to 171.19 provide for the payment of a service pension or disability 171.20 benefit for such full-time employees. 171.21 ARTICLE 13 171.22 STUDY OF STATEWIDE VOLUNTEER 171.23 FIREFIGHTER RETIREMENT PLAN 171.24 Section 1. [STUDY OF STATEWIDE LUMP SUM VOLUNTEER 171.25 FIREFIGHTER RETIREMENT PLAN; CREATION OF TASK FORCE.] 171.26 Subdivision 1. [TASK FORCE MEMBERSHIP.] (a) A statewide 171.27 lump sum volunteer firefighter retirement plan study task force 171.28 is created. 171.29 (b) The task force members are: 171.30 (1) four members appointed by the president of the 171.31 Minnesota area relief association coalition; 171.32 (2) four members appointed by the president of the 171.33 Minnesota state fire department association; 171.34 (3) four members appointed by the president of the 171.35 Minnesota state fire chiefs association; 171.36 (4) four members appointed by the board of directors of the 172.1 league of Minnesota cities; and 172.2 (5) the Minnesota state auditor or the auditor's designee. 172.3 (c) Appointments must be made on or before July 1, 2002. 172.4 If the appointment is not made in a timely way, or if there is a 172.5 vacancy, the Minnesota state auditor shall appoint the task 172.6 force member or the replacement member. 172.7 (d) The chair of the task force must be elected by the 172.8 members of the task force. 172.9 (e) Staffing services for the task force must be provided 172.10 by the office of the state auditor. 172.11 Subd. 2. [TASK FORCE DUTIES.] (a) The task force shall 172.12 conduct fact finding regarding the creation of a voluntary 172.13 statewide firefighter retirement plan. 172.14 (b) To determine the design and components of the potential 172.15 statewide plan, the task force shall contract with the 172.16 management analysis division of the department of administration 172.17 to conduct a statewide survey of current volunteer firefighter 172.18 relief associations on the topic and shall conduct a series of 172.19 public meetings throughout the state in which feedback from 172.20 volunteer firefighter relief association members would be 172.21 obtained. 172.22 (c) The task force shall determine the benefit level or 172.23 levels of a potential statewide volunteer firefighter retirement 172.24 plan, the funding requirements for the plan, the investment 172.25 vehicle or vehicles to be utilized by the plan, the 172.26 administration of the plan, the incentives needed to formulate 172.27 the plan, the limitations applicable to the plan, and the state 172.28 resources needed to be dedicated to the plan. 172.29 Subd. 3. [REPORT.] The task force shall prepare a report 172.30 detailing its findings about a potential statewide lump sum 172.31 volunteer firefighter retirement plan. The report is due on 172.32 January 15, 2004, and must be filed with the legislative 172.33 reference library, the chair of the legislative commission on 172.34 pensions and retirement, the chair of the state and local 172.35 government operations committee of the senate, the chair of the 172.36 state government, economic development and the judiciary budget 173.1 division of the senate finance committee, the chair of the 173.2 government operations and veterans affairs policy committee of 173.3 the house of representatives, and the chair of the state 173.4 government finance committee of the house of representatives. 173.5 Subd. 4. [DATA DISCLOSURE.] In performing their duties 173.6 under this section, the task force, the management analysis 173.7 division of the state department of administration, and the 173.8 consulting actuary retained by the task force shall have access 173.9 to relevant nonpublic data on volunteer firefighter relief 173.10 associations held by the office of the state auditor and must 173.11 comply with the relevant provisions of Minnesota Statutes, 173.12 chapter 13. 173.13 Subd. 5. [APPROPRIATION.] (a) $300,000 is appropriated for 173.14 the task force from deductions from fire state aid, with 173.15 $200,000 to be deducted from the fire state aid otherwise 173.16 payable during October 2002 under Minnesota Statutes, sections 173.17 69.011 to 69.051, and with $100,000 to be deducted from the fire 173.18 state aid otherwise payable during October 2003 under Minnesota 173.19 Statutes, sections 69.011 to 69.051. 173.20 (b) The amount in paragraph (a) is appropriated to the 173.21 state auditor for the benefit of the potential statewide lump 173.22 sum volunteer firefighter retirement plan task force, conducting 173.23 its study, the preparation of the actuarial cost estimates, and 173.24 the preparation of its final report. 173.25 (c) Upon the completion of the study and the filing of the 173.26 final report, any balance of the appropriation cancels to the 173.27 fire state aid program for distribution as part of the October 173.28 2004 fire state aid. 173.29 Sec. 2. [EFFECTIVE DATE.] 173.30 Section 1 is effective on the day following final enactment. 173.31 ARTICLE 14 173.32 ADDITIONAL CLARIFICATIONS 173.33 Section 1. [CLARIFICATION OF APPROPRIATION.] 173.34 Subdivision 1. [PURPOSE.] This section clarifies treatment 173.35 extended to an individual specified in Laws 2001, chapter 169, 173.36 section 5, and is intended to eliminate any potential windfall 174.1 to the public employees retirement association police and fire 174.2 plan fund and the public employees retirement association 174.3 general employees plan fund that may result from that session 174.4 law. 174.5 Subd. 2. [ELIGIBILITY.] The eligible individual is an 174.6 individual specified in Laws 2001, chapter 169, section 5, who 174.7 was an assistant commissioner in the department of public safety 174.8 from April 30, 1994, through May 31, 1998, while on an 174.9 intergovernmental mobility assignment or assignments to the 174.10 state from the city of Saint Paul police department. 174.11 Subd. 3. [SALARY INCREMENT.] The salary increment in any 174.12 applicable year or portion of a year is the difference between 174.13 the salary the eligible individual in subdivision 2 received as 174.14 assistant commissioner and the salary upon which pension 174.15 contributions were made for that year or portion of a year. 174.16 Subd. 4. [BENEFIT COMPUTATIONS.] The retirement benefits, 174.17 or disability benefits if applicable, under the public employees 174.18 retirement association police and fire plan and the public 174.19 employees retirement association general plan are to be computed 174.20 based on plan law applicable to the eligible individual under 174.21 subdivision 2 given the eligible individual's termination of 174.22 service date or dates, or the disability benefit accrual date or 174.23 dates as applicable, except for inclusion of salary increments 174.24 under subdivision 3 for purposes of determining average salary 174.25 under Minnesota Statutes, sections 353.29, subdivision 2, and 174.26 353.651, subdivision 2. 174.27 Subd. 5. [ANNUITY RESERVE COMPARISONS.] The executive 174.28 director of the public employees retirement association is to 174.29 determine the increased actuarial reserves, if any, needed to 174.30 support the annuities from the two applicable public employees 174.31 retirement association retirement funds on the effective date of 174.32 retirement or disability from the applicable plans due to this 174.33 section. 174.34 Subd. 6. [COMPARISON TO APPROPRIATION AMOUNTS.] The total 174.35 amount determined under subdivision 5, if zero or positive, is 174.36 to be subtracted from the total value of any appropriation 175.1 received by the public employees retirement association under 175.2 Laws 2001, chapter 169, section 5, on the date computations 175.3 under subdivision 5 occur assuming 8.5 percent interest 175.4 compounded annually from the date the appropriation is received 175.5 until the computation date under subdivision 5. 175.6 Subd. 7. [DISPOSITION OF EXCESS.] The amount determined 175.7 under subdivision 6, net of the value of any foregone employer 175.8 contributions including 8.5 percent interest compounded annually 175.9 relating to the salary increments under subdivision 3, if any, 175.10 is to be redeposited within 30 days following the date of that 175.11 determination in the state's general fund. 175.12 Subd. 8. [INTERNAL ALLOCATIONS.] Notwithstanding any law 175.13 to the contrary, the executive director is authorized to place 175.14 amounts received, if any, due to Laws 2001, chapter 169, section 175.15 5, in the public employees retirement association general plan 175.16 fund, or the public employees retirement association police and 175.17 fire plan fund, or to allocate amounts between these funds as 175.18 deemed appropriate. Following the determinations required by 175.19 this section, the executive director may again reallocate 175.20 amounts between the two funds to reflect a reasonable allocation 175.21 of the remaining net appropriation amount. 175.22 Subd. 9. [CONTRIBUTION RATIFICATION.] Contributions and 175.23 interest paid to the association relating to the salary 175.24 increments referred to in subdivision 3 are authorized for 175.25 deposit in the public employees retirement association police 175.26 and fire plan fund and are ratified. 175.27 Sec. 2. [PUBLIC EMPLOYEES POLICE AND FIRE PLAN; RECISION 175.28 OF ANNUITY APPLICATION IN FAVOR OF DISABILITY BENEFIT 175.29 APPLICATION.] 175.30 (a) Notwithstanding Minnesota Statutes, section 353.29, 175.31 subdivision 7, or any other law to the contrary, an eligible 175.32 person described in paragraph (b) may revoke an application for 175.33 a retirement annuity from the public employees police and fire 175.34 plan and may file an application for a disability benefit from 175.35 the public employees police and fire plan, effective the first 175.36 day of the month following approval of the disability 176.1 application. 176.2 (b) An eligible person is a person who: 176.3 (1) was born on August 6, 1949; 176.4 (2) was employed for 27 years with the city of West St. 176.5 Paul fire department; 176.6 (3) terminated employment with the city of West St. Paul on 176.7 January 31, 2001; 176.8 (4) filed six "first report of injury" documents for back 176.9 injuries with the city of West St. Paul between June 1984 and 176.10 December 2000; 176.11 (5) requested recision of his public employees police and 176.12 fire plan retirement annuity on February 16, 2001, and tendered 176.13 a personal check repaying the initial annuity amount; and 176.14 (6) unsuccessfully appealed to the public employees 176.15 retirement association board of trustees on May 10, 2001, for 176.16 authority to rescind a retirement annuity application and to 176.17 apply for a disability benefit. 176.18 Sec. 3. [MSRS-GENERAL; ACCELERATED OPTIONAL ANNUITY FORM.] 176.19 (a) An eligible person described in paragraph (b) is 176.20 entitled to elect from the general state employees retirement 176.21 plan of the Minnesota state retirement system the actuarial 176.22 equivalent accelerated optional annuity form specified in 176.23 paragraph (c). 176.24 (b) An eligible person is a person who: 176.25 (1) was born on October 13, 1943; 176.26 (2) was employed as a teacher by the Benson public schools 176.27 from August 1967 to June 1969; 176.28 (3) was employed as a teacher by the Richfield public 176.29 schools from January 1, 1971, to June 1973; and 176.30 (4) was initially employed by the office of the legislative 176.31 auditor on October 14, 1985, and remains an employee of the 176.32 office of the legislative auditor. 176.33 (c) The board of directors of the Minnesota state 176.34 retirement system shall establish an accelerated optional 176.35 retirement annuity for the eligible person. The accelerated 176.36 optional retirement annuity form must replicate to the extent 177.1 practicable the accelerated optional retirement annuity form 177.2 that would apply to the eligible person by the teachers 177.3 retirement association. The optional annuity form must be the 177.4 actuarial equivalent of the eligible person's single life 177.5 annuity. The accelerated optional retirement annuity form must 177.6 be established prior to October 1, 2002. The cost of the 177.7 actuarial calculations of the consulting actuary retained by the 177.8 legislative commission on pensions and retirement is payable by 177.9 the general state employees retirement plan and the plan must be 177.10 reimbursed by the eligible person for those costs upon 177.11 notification by the executive director of the Minnesota state 177.12 retirement system. 177.13 Sec. 4. [SURVIVOR BENEFIT FOR DECEASED PUBLIC EMPLOYEES 177.14 RETIREMENT ASSOCIATION POLICE AND FIRE PLAN MEMBER.] 177.15 Subdivision 1. [APPLICATION.] An eligible individual under 177.16 subdivision 2 is eligible to receive the benefit specified in 177.17 subdivision 3 upon satisfying requirements specified in 177.18 subdivision 4. 177.19 Subd. 2. [ELIGIBILITY.] An eligible individual is a 177.20 surviving spouse of a deceased previous member of the public 177.21 employees retirement association police and fire plan who: 177.22 (1) was born on October 10, 1933; 177.23 (2) was injured on April 29, 1977, while performing duties 177.24 as the chief of police for the city of Hayfield; 177.25 (3) was incorrectly diagnosed in March 1978 as having 177.26 amyotrophic lateral sclerosis; 177.27 (4) received a refund of employee contributions to the 177.28 public employees retirement association police and fire plan; 177.29 and 177.30 (5) died on March 13, 1999, from conditions resulting from 177.31 the April 29, 1977, injury. 177.32 Subd. 3. [BENEFIT AMOUNT.] (a) The benefit amount is the 177.33 amount specified in paragraph (b) plus the amount specified in 177.34 paragraph (c). 177.35 (b) The executive director of the public employees 177.36 retirement association must compute the present value, on the 178.1 first of the month following the date all requirements under 178.2 subdivision 4 are satisfied, of duty-related disability benefits 178.3 assuming that the public employees retirement association board 178.4 had concluded that the deceased chief of police for the city of 178.5 Hayfield, as described in subdivision 2, met the requirements of 178.6 Minnesota Statutes 1978, section 353.656, subdivision 1, for 178.7 disability benefits due to duty-related injury. The computation 178.8 must assume that the disability benefit would have been paid 178.9 from the first of the month following the determination of the 178.10 public employees retirement association board that the deceased 178.11 chief of police for the city of Hayfield, described in 178.12 subdivision 2, met the requirements of Minnesota Statutes 1978, 178.13 section 353.656, subdivision 1, until the individual's death on 178.14 March 13, 1999. The computation must include any increases or 178.15 other adjustments payable under the Minnesota postretirement 178.16 investment fund or its predecessor fund or funds. The 178.17 disability benefits assumed in the computation must be reduced 178.18 by any workers' compensation benefits paid or payable, if 178.19 required under applicable law. The executive director must 178.20 subtract, from the present value, the present value of the 178.21 refund plus any applicable interest that was paid to the now 178.22 deceased employee. The computations under this paragraph must 178.23 assume 8.5 percent interest, compounded annually. The 178.24 computations must also assume election of a 100 percent 178.25 joint-and-survivor optional annuity at the earliest opportunity 178.26 authorized under public employees retirement association law or 178.27 administrative procedure. The amount determined under this 178.28 paragraph is payable on the first of the month following the 178.29 date all requirements under subdivision 4 are satisfied. 178.30 (c) An annuity is payable to the eligible individual under 178.31 subdivision 2, computed assuming the deceased police officer had 178.32 elected a 100 percent joint-and-survivor annuity. The annuity 178.33 accrues from April 1, 1999. Any amounts representing monthly 178.34 annuity payments prior to the date all requirements under 178.35 subdivision 4 are met are payable as a lump sum amount, 178.36 including 8.5 percent interest compounded annually, payable on 179.1 the first of the month following the date all requirements under 179.2 subdivision 4 are met. The executive director is authorized to 179.3 transfer assets representing the full actuarial reserves for the 179.4 annuity authorized under this paragraph from the public 179.5 employees retirement association police and fire fund to the 179.6 Minnesota postretirement investment fund. 179.7 Subd. 4. [ADMINISTRATIVE HEARING; OTHER REQUIREMENTS.] (a) 179.8 The public employees retirement association shall hold an 179.9 administrative hearing under Minnesota Statutes, sections 14.57 179.10 to 14.62, to determine whether the previous member of the public 179.11 employees retirement association police and fire fund plan 179.12 described in subdivision 2 died from conditions resulting from 179.13 the April 29, 1977, injury. Notice of the hearing must be 179.14 provided within 30 days of the effective date of this section 179.15 and the hearing must be held as soon as practicable after the 179.16 notice is provided. The findings of the administrative law 179.17 judge must be filed with the executive director of the public 179.18 employees retirement association, the eligible individual under 179.19 subdivision 2, and the executive director of the legislative 179.20 commission on pensions and retirement. 179.21 (b) Benefits are payable under this section if the 179.22 administrative law judge concludes that the individual's death 179.23 on March 13, 1999, was caused by conditions resulting from the 179.24 April 29, 1977, injury. 179.25 (c) The eligible individual under subdivision 2 must 179.26 provide the executive director of the public employees 179.27 retirement association with all relevant documentation to verify 179.28 that all remaining eligibility requirements in this section are 179.29 satisfied and with any other applicable information that the 179.30 executive director may request. 179.31 Sec. 5. [PRIOR OUT-OF-STATE TEACHING SERVICE CREDIT 179.32 PURCHASE BY PUBLIC EMPLOYEES RETIREMENT ASSOCIATION MEMBER.] 179.33 Subdivision 1. [ELIGIBILITY.] An eligible member is a 179.34 current active member of the public employees retirement 179.35 association general plan who becomes a member of that plan on 179.36 August 1, 1973, and who was born on December 16, 1944. An 180.1 eligible member may purchase allowable service credit in the 180.2 public employees retirement association general plan as 180.3 specified in this section. 180.4 Subd. 2. [SERVICE CREDIT PURCHASE AUTHORIZED.] (a) An 180.5 eligible member specified in subdivision 1 is eligible to 180.6 purchase up to four years of allowable and formula service 180.7 credit for out-of-state teaching service by making payment under 180.8 Minnesota Statutes, section 356.55 or 356.551, whichever is 180.9 applicable, provided that the out-of-state teaching service was 180.10 performed for an educational institution established and 180.11 operated by another governmental jurisdiction and the eligible 180.12 member is not entitled to receive a current or deferred age and 180.13 service retirement annuity or disability benefit and has not 180.14 purchased service credit from another defined benefit public 180.15 employee pension plan for that out-of-state teaching service. 180.16 (b) For purposes of paragraph (a), "another governmental 180.17 jurisdiction" means another state of the United States or a 180.18 governmental subdivision of another state of the United States. 180.19 Subd. 3. [APPLICATION AND DOCUMENTATION.] An eligible 180.20 member under subdivision 1 who desires to purchase service 180.21 credit under this section must apply with the executive director 180.22 of the public employees retirement association to make the 180.23 purchase. The application must include all necessary 180.24 documentation of the eligible member's qualifications to make 180.25 the purchase, signed written permission to allow the executive 180.26 director to request and receive necessary verification of 180.27 applicable facts and eligibility requirements, and any other 180.28 relevant information that the executive director may require. 180.29 Payment must be made before the eligible member's effective date 180.30 of retirement or before January 1, 2003, whichever is earlier. 180.31 Subd. 4. [SERVICE CREDIT GRANT.] Allowable and formula 180.32 service credit for the purchase period must be granted by the 180.33 public employees retirement association to the purchasing 180.34 eligible member on receipt of the purchase payment amount. 180.35 Sec. 6. [EFFECTIVE DATE.] 180.36 Sections 1 to 5 are effective on the day following final 181.1 enactment. 181.2 ARTICLE 15 181.3 AUTHORIZATION OF ADDITIONAL SERVICE 181.4 Section 1. [PERA AND MSRS; SERVICE CREDIT GRANT.] 181.5 Subdivision 1. [ELIGIBILITY.] An eligible person is a 181.6 person who: 181.7 (1) served as a legislator representing Hubbard county 181.8 during the 1961-1963 legislative session; 181.9 (2) was employed by the department of natural resources or 181.10 its predecessor at Itasca state park from 1964 to 1980; and 181.11 (3) retired from the general state employees retirement 181.12 plan of the Minnesota state retirement system on July 1, 1980, 181.13 with ten years, six months, and nine days of service credit. 181.14 Subd. 2. [PERA SERVICE CREDIT GRANT.] An eligible person 181.15 is entitled to receive two years of service credit from the 181.16 general employees retirement plan of the public employees 181.17 retirement association for prior uncredited service as a member 181.18 of the legislature. 181.19 Subd. 3. [MSRS SERVICE CREDIT GRANT.] An eligible person 181.20 is entitled to receive 5.48 years of service credit from the 181.21 general state employees retirement plan of the Minnesota state 181.22 retirement system for uncredited periods from 1964 to 1980 181.23 between seasonal Itasca state park employment. 181.24 Subd. 4. [COMBINED SERVICE ANNUITY 181.25 APPLICATION.] Notwithstanding the time that has elapsed since 181.26 initial retirement, an eligible person may apply for a 181.27 retirement annuity from the general employees retirement plan of 181.28 the public employees retirement association and may apply for a 181.29 recomputed retirement annuity from the general state employees 181.30 retirement plan of the Minnesota state retirement system under 181.31 Minnesota Statutes, section 356.30. 181.32 Subd. 5. [PAYMENT.] (a) The house of representatives shall 181.33 pay the executive director of the public employees retirement 181.34 association an amount equal to the required reserves needed to 181.35 support the retirement annuity of an eligible person under 181.36 subdivisions 2 and 4. Payment must be made within ten days of 182.1 notification by the executive director of the amount due. The 182.2 payment must be deposited in the public employees retirement 182.3 fund and transferred to the Minnesota postretirement investment 182.4 fund. 182.5 (b) The department of natural resources shall pay the 182.6 executive director of the Minnesota state retirement system an 182.7 amount equal to the required reserves needed to support the 182.8 retirement annuity of an eligible person under subdivisions 3 182.9 and 4. Payment must be made within ten days of notification by 182.10 the executive director of the amount due. The payment must be 182.11 deposited in the state employees retirement fund and transferred 182.12 to the Minnesota postretirement investment fund. 182.13 Subd. 6. [RETIREMENT ANNUITY ACCRUAL.] The retirement 182.14 annuities payable under this section accrue on the first day of 182.15 the month next following final enactment. 182.16 Sec. 2. [EFFECTIVE DATE.] 182.17 Section 1 is effective on the day following final enactment. 182.18 ARTICLE 16 182.19 DUTIES AND POWERS OF BOARD OF DIRECTORS 182.20 Section 1. Minnesota Statutes 2000, section 123A.21, 182.21 subdivision 5, is amended to read: 182.22 Subd. 5. [DUTIES AND POWERS OF SC BOARD OF DIRECTORS.] The 182.23 board of directors shall have authority to maintain and operate 182.24 a SC. Subject to the availability of necessary resources, the 182.25 powers and duties of this board shall include the following: 182.26 (a) The board of directors shall submit, by June 1 of each 182.27 year to each participating member, an annual plan which 182.28 describes the objectives and procedures to be implemented in 182.29 assisting in resolution of the needs of the SC. 182.30 (b) The SC board of directors shall provide adequate 182.31 office, service center, and administrative facilities by lease, 182.32 purchase, gift, or otherwise. 182.33 (c) The SC board of directors shall employ a central 182.34 administrative staff and other personnel as necessary to provide 182.35 and support the agreed upon programs and services. The board 182.36 may discharge staff and personnel pursuant to applicable 183.1 provisions of law. SC staff and personnel may participate in 183.2 retirement programs and any other programs available to public 183.3 school staff and personnel. 183.4 (d) The SC board of directors may appoint special advisory 183.5 committees composed of superintendents, central office 183.6 personnel, building principals, teachers, parents, lay persons, 183.7 and representatives from cities, counties, and other 183.8 governmental units and may delegate specified powers or duties 183.9 to a committee. 183.10 (e) The SC board of directors may employ service area 183.11 personnel pursuant to licensure and certification standards 183.12 developed by the appropriate state agency such as the 183.13 commissioner and the state board of teaching. 183.14 (f) The SC board of directors may enter into contracts with 183.15 school boards of local districts including school districts 183.16 outside the SC area. 183.17 (g) The SC board of directors may enter into contracts with 183.18 other public and private agencies and institutions to provide 183.19 administrative staff and other personnel as necessary to furnish 183.20 and support the agreed upon programs and services. 183.21 (h) The SC board of directors shall exercise all powers and 183.22 carry out all duties delegated to it by members under provisions 183.23 of the SC bylaws. The SC board of directors shall be governed, 183.24 when not otherwise provided, by applicable laws of the state. 183.25 (i) The SC board of directors shall submit an annual 183.26 evaluation report of the effectiveness of programs and services 183.27 to the members by September 1 of each year following the 183.28 previous June 30 in which the programs and services were 183.29 provided. 183.30 (j) The SC board is encouraged to establish cooperative, 183.31 working relationships and partnerships with post-secondary 183.32 educational institutions, other public agencies, business, and 183.33 industry. 183.34 ARTICLE 17 183.35 PRIOR SERVICE CREDIT PURCHASE REFUND 183.36 Section 1. [PRIOR SERVICE CREDIT PURCHASE REFUND.] 184.1 A person who purchased service credit for prior or 184.2 uncredited military service in a public pension plan listed in 184.3 Minnesota Statutes, section 356.20, subdivision 2, may receive a 184.4 refund of the purchase payment amount if the payment was made 184.5 prior to the effective date of the federal Economic Growth and 184.6 Tax Reconciliation Act of 2001 and the person transfers pretax 184.7 funds to the pension plan to purchase an equivalent amount of 184.8 service credit. This section is contingent on the teachers 184.9 retirement association applying for and receiving a favorable 184.10 ruling from the Internal Revenue Service regarding this 184.11 provision. 184.12 Sec. 2. [EFFECTIVE DATE; EXPIRATION.] 184.13 Section 1 is effective on the date the teachers retirement 184.14 association receives a favorable determination letter and 184.15 expires one year after the effective date.