Minnesota Legislature
HF 3127
3rd 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; authorizing service credit purchase for 1.7 certain strike periods; providing public employee 1.8 pension coverage for certain foreign citizens; 1.9 clarifying membership eligibility and allowable 1.10 service credit for the public employees retirement 1.11 association; requiring membership for charter school 1.12 teachers in the teachers retirement association; 1.13 providing for the payment of unpaid closed charter 1.14 school retirement contributions from charter school 1.15 lease aid; eliminating contribution rate increases in 1.16 the local government correctional service retirement 1.17 plan; establishing provisions relating to employees of 1.18 the Kanabec hospital if the hospital is privatized; 1.19 extending the expiration date for certain prior 1.20 service credit purchase authorizations; recodifying 1.21 social security coverage provisions; implementing 1.22 recommended changes in salary actuarial assumptions; 1.23 clarifying the restrictions on supplemental and local 1.24 pension plans for plans funded from accumulated sick 1.25 and vacation leave; reorganizing the revising various 1.26 general retirement provisions; instructing the revisor 1.27 of statutes; authorizing the commissioner of 1.28 administration to lease pension fund facilities to 1.29 deferred compensation service providers; authorizing 1.30 certain volunteer firefighters to receive service 1.31 pensions or disability benefits without terminating 1.32 active service; creating the coordinated program of 1.33 the legislators retirement plan; providing a second 1.34 social security referendum for legislators; modifying 1.35 Minneapolis police optional annuity provision; 1.36 amending Minnesota Statutes 2000, sections 69.77; 1.37 69.80; 353.01, by adding a subdivision; 353.64, 1.38 subdivision 7a; 353A.08, subdivision 6a; 353E.02, 1.39 subdivision 1, by adding a subdivision; 353E.03; 1.40 353F.02, subdivision 4; 354A.011, subdivision 27; 1.41 355.01, subdivisions 1, 3, 6, 8, by adding 1.42 subdivisions; 355.02; 355.03; 355.05; 355.07; 355.08; 1.43 356.001; 356.20, subdivisions 1, 2, 3, 4, 4a; 356.215, 1.44 as amended; 356.216; 356.217; 356.219; 356.22; 356.23; 1.45 356.24, subdivisions 1b, 1c, 2; 356.245; 356.25; 1.46 356.30; 356.302; 356.303; 356.32; 356.40; 356.41; 2.1 356.50; 356.55, as amended; 356.551; 356.611; 356.65, 2.2 subdivision 2; 356.87; 356.89, subdivision 3; 423A.17; 2.3 423A.171; 423B.09, subdivision 6; 424A.02, subdivision 2.4 1; 424A.09; Minnesota Statutes 2001 Supplement, 2.5 sections 352.01, subdivision 11; 353.01, subdivisions 2.6 2a, 2b, 11b, 16; 353.27, subdivisions 4, 11; 354.05, 2.7 subdivisions 2, 13; 356.24, subdivision 1; 356.555; 2.8 356.62; 356.65, subdivision 1; Laws 1999, chapter 222, 2.9 article 16, section 16; Laws 2000, chapter 461, 2.10 article 10, section 3, as amended; Laws 2000, chapter 2.11 461, article 12, section 20; Laws 2001, First Special 2.12 Session chapter 10, article 6, section 21; proposing 2.13 coding for new law in Minnesota Statutes, chapters 3A; 2.14 355; 356; proposing coding for new law as Minnesota 2.15 Statutes, chapter 356B; repealing Minnesota Statutes 2.16 2000, sections 69.25; 69.26; 69.27; 69.28; 69.29; 2.17 69.30; 69.32; 69.361; 69.37; 69.38; 69.39; 69.40; 2.18 69.41; 69.42; 69.43; 69.44; 69.45; 69.46; 69.47; 2.19 69.48; 69.49; 69.50; 69.51; 69.52; 69.53; 69.62; 2.20 69.78; 297I.10, subdivision 2; 355.01, subdivisions 2, 2.21 4, 5, 9, 10; 355.11; 355.12; 355.13; 355.14; 355.15; 2.22 355.16; 355.17; 355.201; 355.202; 355.203; 355.204; 2.23 355.205; 355.206; 355.207; 355.208; 355.209; 355.21; 2.24 355.22; 355.23; 355.24; 355.25; 355.26; 355.27; 2.25 355.28; 355.281; 355.282; 355.283; 355.284; 355.285; 2.26 355.286; 355.287; 355.288; 355.29; 355.291; 355.292; 2.27 355.293; 355.294; 355.295; 355.296; 355.297; 355.298; 2.28 355.299; 355.30; 355.311; 355.391; 355.392; 355.393; 2.29 355.41; 355.42; 355.43; 355.44; 355.45; 355.46; 2.30 355.48; 355.49; 355.50; 355.51; 355.52; 355.54; 2.31 355.55; 355.56; 355.57; 355.58; 355.59; 355.60; 2.32 355.61; 355.621; 355.622; 355.623; 355.624; 355.625; 2.33 355.626; 355.627; 355.628; 355.71; 355.72; 355.73; 2.34 355.74; 355.75; 355.76; 355.77; 355.78; 355.79; 2.35 355.80; 355.81; 355.90; 356.19; 356.305; 356.306; 2.36 356.31; 356.325; 356.35; 356.36; 356.37; 356.371, 2.37 subdivisions 2, 3; 356.372; 356.38; 356.39; 356.45; 2.38 356.451; 356.452; 356.453; 356.454; 356.455; 356.615; 2.39 356.71; 356.80; 356.81; 356.86; 356.865; 356.88; 2.40 356.89; 423.37; 423.371; 423.372; 423.373; 423.374; 2.41 423.375; 423.377; 423.378; 423.379; 423.38; 423.381; 2.42 423.382; 423.383; 423.384; 423.385; 423.386; 423.387; 2.43 423.388; 423.389; 423.39; 423.391; 423.392; 423.801; 2.44 423.802; 423.803; 423.804; 423.805; 423.806; 423.808; 2.45 423.809; 423.810; 423.812; 423.813; 423.814; 423.90; 2.46 423A.03; 424.01; 424.02; 424.03; 424.04; 424.05; 2.47 424.06; 424.08; 424.14; 424.15; 424.16; 424.165; 2.48 424.17; 424.18; 424.19; 424.20; 424.21; 424.22; 2.49 424.23; 424.24; 424.25; 424.27; 424.28; 424.29; 2.50 Minnesota Statutes 2001 Supplement, sections 353.01, 2.51 subdivision 39; 356.371, subdivision 1; 356.866; 2.52 Special Session Laws 1889, chapter 425; Special 2.53 Session Laws 1891, chapter 11; Laws 1897, chapters 2.54 389; 390; Laws 1915, chapter 68; Laws 1917, chapter 2.55 196; Laws 1919, chapters 68, 515; Laws 1921, chapter 2.56 118; Laws 1923, chapter 54; Laws 1925, chapter 197; 2.57 Laws 1931, chapter 48; Laws 1933, chapter 122; Laws 2.58 1935, chapters 92; 192; 208; 259; Laws 1937, chapters 2.59 132; 197; 253; Laws 1939, chapters 124; 304; Laws 2.60 1941, chapters 74; 182; 196; Laws 1943, chapters 170; 2.61 267; 397; 413; 432; Laws 1945, chapters 74; 182; 277; 2.62 300; Laws 1947, chapters 40; 43; 101; 274; 329; Laws 2.63 1949, chapters 87; 144; 153; 154; 164; 191; 235; 281; 2.64 378; Laws 1951, chapters 43; 45; 48; 144; 233; 243; 2.65 420; 435; 499; Laws 1953, chapters 37; 44; 91; 235; 2.66 253; 348; 391; 401; 406; Laws 1955, chapters 42; 49; 2.67 75; 151; 187; 188; 293; 294; 348; 375; 827; Laws 1957, 2.68 chapters 10; 16; 36; 127; 144; 164; 256; 257; 455; 2.69 630; 793; Laws 1959, chapters 108; 131; 191; 207; 208; 2.70 211; 437; Laws 1961, chapters 186; 290; 295; 300; 343; 2.71 376; 399; 434; 435, section 2; 443; 620; 631; 747; 3.1 Extra Session Laws 1961, chapters 28; 80; Laws 1963, 3.2 chapters 36; 208; 221; 271; 443; 453; 454; 464; 619; 3.3 636; 643; 670; 715; Laws 1965, chapters 174; 179; 190; 3.4 418; 457; 458; 465; 498; 536; 540; 594; 604; 605; 636; 3.5 790; Laws 1967, chapters 644; 678; 702; 708; 730; 732; 3.6 736; 751; 775; 783; 798; 807; 816; 848; Laws 1969, 3.7 chapters 138; 442; 443; 552; 576; 594; 614; 641; 668; 3.8 669; 670; 671; 672; 686; 694; 716; 849; 1087; Laws 3.9 1971, chapters 51; 178; 407; 549; 614; 807; 809; 810; 3.10 Extra Session Laws 1971, chapter 41; Laws 1973, 3.11 chapters 286; 287; 346; 359; 432; 433; 587; Laws 1974, 3.12 chapters 251; 382; Laws 1975, chapters 120; 121; 127; 3.13 254, sections 1, 2, 3, 4, 5, 6; 368, section 54; 389; 3.14 408; 423; 424; 425; Laws 1976, chapters 36; 78; 85; 3.15 99; 247; Laws 1977, chapters 83; 164, sections 1, 3; 3.16 169; 270; 275; 374, sections 1, 2, 3, 4, 5, 6, 7, 8, 3.17 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 3.18 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 3.19 36, 37, 38, 39, 40, 41, 42, 43, 44, 45, 46, 47, 48, 3.20 49, 50, 51, 52, 53, 54, 55, 56, 57, 58, 59, 60; 429, 3.21 section 62; Laws 1978, chapters 563, sections 12, 13, 3.22 14, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 3.23 28, 29, 30; 579; 648; 690, sections 9, 10; 793, 3.24 section 96; Laws 1979, chapters 131, section 3; 216, 3.25 sections 27, 28, 29, 30, 31, 34, 35, 36, 37, 38, 39, 3.26 40, 41, 42, 43, 44; Laws 1980, chapters 341, sections 3.27 2, 3, 4, 5, 6, 9, 10; 600, sections 11, 12, 13, 14, 3.28 15, 16, 17, 18, 22; 607, article XV, section 23; Laws 3.29 1981, chapter 68, sections 31, 32, 33, 34, 35, 36, 37, 3.30 41, 42, 43; Laws 1981, chapter 224, sections 236, 237, 3.31 239, 240, 243, 244, 247, 248, 252, 253, 258, 259, 260, 3.32 261, 263, 264, 265, 266, 267, 268, 270, 272, 273; Laws 3.33 1981, chapter 297, sections 1, 2; Laws 1982, chapters 3.34 402; 443; 574, sections 3, 4, 5, 6, 8; 578, article 3.35 II, section 1, subdivision 8, article III, section 18; 3.36 610, sections 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 3.37 18, 19, 20; Laws 1983, chapters 47; 74; 84, section 1; 3.38 291, sections 8, 9, 10, 11, 12, 13, 14, 15, 16, 17; 3.39 Laws 1984, chapter 574, sections 18, 19, 20, 22, 23, 3.40 24, 25, 26, 33; Laws 1985, chapters 259, sections 5, 3.41 6; 261, sections 14, 15, 16, 18, 20, 32, 33, 34, 35, 3.42 36; Laws 1985, First Special Session chapter 16, 3.43 article 2, section 6; Laws 1986, chapters 359, 3.44 sections 22, 23, 24, 25; 458, sections 23, 34; Laws 3.45 1987, chapter 372, article 2, sections 7, 8, 9, 10, 3.46 12; Laws 1988, chapter 709, articles 8, section 5; 9, 3.47 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 chapter 233, article 1, section 58; Laws 1997, chapter 3.58 241, article 2, sections 2, 3, 4, 5, 6, 9, 10, 11, 13, 3.59 14, 15, 20; Laws 1999, chapter 222, article 3, section 3.60 6; Laws 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,clause8.25(2), subclause (c)paragraph (b), clause (2), or 423A.01, 8.26 subdivision 2, clause (6), from the local police and salaried 8.27 firefighters' relief association amortization aid program 8.28 establishedpursuant tounder section 423A.02and, subdivision 8.29 1, from the supplementary amortization state-aid program 8.30 established underLaws 1984, chapter 564, section 48, and Laws8.311985, chapter 261, section 17section 423A.02, subdivision 1a, 8.32 and from the additional amortization state aid under section 8.33 423A.02, subdivision 1b. 8.34 Subd.2c5. [DETERMINATION SUBMISSION.] The officers of 8.35 the relief association shall submit the determination of the 8.36 financial requirements of the relief association and of the 9.1 minimum obligation of the municipality to the governing body on 9.2 or before the date established by the municipality, whichshall9.3 may not be earlier than August 1 andshallmay not be later than 9.4 September 1 of each year. The governing body of the 9.5 municipalityshallmust ascertain whether or not the 9.6 determinations were prepared in accordance with law. 9.7 Subd.2d6. [MUNICIPAL PAYMENT.] (a) The municipality 9.8 shall provide for and shall pay, each year, at least the amount 9.9 of the minimum obligation of the municipality to the relief 9.10 association. 9.11 (b) If there is any deficiency in the municipal payment to 9.12 meet the minimum obligation of the municipality as of the end of 9.13 any calendar year, the amount of the deficiencyshallmust be 9.14 added to the minimum obligation of the municipality for the 9.15 following year calculatedpursuant tounder subdivision2b4 and 9.16shallmust include interest at the compound rate of six percent 9.17 per annumcompoundedfrom the date that the municipality was 9.18 required to make paymentpursuant tounder this subdivision 9.19 until the date that the municipality actually makes the required 9.20 payment. 9.21 Subd.2e7. [BUDGET INCLUSION.] (a) The municipality shall 9.22 provide in the annual municipal budget for at least the minimum 9.23 obligation of the municipality calculatedpursuant tounder 9.24 subdivision2b4. 9.25 (b) The municipality may levy taxes for the payment of the 9.26 minimum obligation of the municipality without any limitation as 9.27 to rate or amount and irrespective of limitations imposed by 9.28 other provisions of law upon the rate or amount of taxation when 9.29 the balance of the special fund or any fund of the relief 9.30 association has attained a specified minimum asset level. In 9.31 addition, any taxes leviedpursuant tounder this sectionshall9.32 may not cause the amount or rate of other taxes levied in that 9.33 year or to be levied in a subsequent year by the municipality 9.34 which are subject to a limitation as to rate or amount to be 9.35 reduced. 9.36 (c) If the municipality does not include the full amount of 10.1 the minimum obligation of the municipality in the levy that the 10.2 municipality certified to the county auditor in any year, the 10.3 officers of the relief association shall certify the amount of 10.4 any deficiency to the county auditor. Upon verifying the 10.5 existence of any deficiency in the levy certified by the 10.6 municipality, the county auditor shall spread a levy over the 10.7 taxable property of the municipality in the amount of the 10.8 deficiency certified to by the officers of the relief 10.9 association. 10.10 Subd.2f8. [ACCELERATED AMORTIZATION.] Any sums of money 10.11 paid by the municipality to the relief association in excess of 10.12 the minimum obligation of the municipality in any yearshall10.13 must be used to amortize any unfunded actuarial accrued 10.14 liabilities of the relief association. 10.15 Subd.2g9. [LOCAL POLICE AND PAID FIRE RELIEF ASSOCIATION 10.16 INVESTMENT AUTHORITY.] (a) The funds of the association must be 10.17 invested in securities that are authorized investments under 10.18 section 356A.06, subdivision 6 or 7, whichever 10.19 applies.Notwithstanding the foregoing,Up to 75 percent of the 10.20 market value of the assets of the fund may be invested in 10.21 open-end investment companies registered under the federal 10.22 Investment Company Act of 1940, if the portfolio investments of 10.23 the investment companies comply with the type of securities 10.24 authorized for investment under section 356A.06, subdivision 7. 10.25 Securities held by the association before June 2, 1989, that do 10.26 not meet the requirements of this subdivision may be retained 10.27 after that date if they were proper investments for the 10.28 association on that date. 10.29 (b) The governing board of the association may select and 10.30 appoint investment agencies to act for and in its behalf or may 10.31 certify special fund assets for investment by the state board of 10.32 investment under section 11A.17. The governing board of the 10.33 association may certify general fund assets of the relief 10.34 association for investment by the state board of investment in 10.35 fixed income pools or in a separately managed account at the 10.36 discretion of the state board of investment as provided in 11.1 section 11A.14. The governing board of the association may 11.2 select and appoint a qualified private firm to measure 11.3 management performance and return on investment, and the firm 11.4 shall use the formula or formulas developed by the state board 11.5 under section 11A.04, clause (11). 11.6 Subd.2h10. [ACTUARIAL VALUATION REQUIRED.] The 11.7 association shall obtain an actuarial valuation showing the 11.8 condition of the special fund of the relief associationpursuant11.9tounder sections 356.215 and 356.216 and any applicable 11.10 standards for actuarial work established by the legislative 11.11 commission on pensions and retirement. The actuarial valuation 11.12 must be made as of December 31 of every year. A copy of the 11.13 actuarial valuationshallmust be filed with the director of the 11.14 legislative reference library, the governing body of the 11.15 municipality in which the association is organized, the 11.16 executive director of the legislative commission on pensions and 11.17 retirement, and the state auditor, not later than July 1 of the 11.18 following year. 11.19 Subd.2i11. [MUNICIPAL APPROVAL OF BENEFIT CHANGES 11.20 REQUIRED.] Any amendment to the bylaws or articles of 11.21 incorporation of a relief association which increases or 11.22 otherwise affects the retirement coverage provided by or the 11.23 service pensions or retirement benefits payable from any police 11.24 or firefighters' relief association enumerated in subdivision 1a 11.25shallis notbeeffective until it is ratified by the 11.26 municipality in which the relief association is located. The 11.27 officers of the relief association shall not seek municipal 11.28 ratificationprior tobefore obtaining either an updated 11.29 actuarial valuation including the proposed amendment or an 11.30 estimate of the expected actuarial impact of the proposed 11.31 amendment prepared by the actuary of the relief association and 11.32 submitting that actuarial valuation or estimate to the clerk of 11.33 the municipality. 11.34 Subd. 12. [APPLICATION OF OTHER LAWS TO CONTRIBUTION 11.35 RATE.] In the absence of any specific provision to the contrary, 11.36 no general or special law may be construed as reducing the 12.1 amount or rate of contribution to a police or firefighters 12.2 relief association to which subdivision 1a applies, by a 12.3 municipality or member of the association, which is required as 12.4 a condition for the use of public funds or the levy of taxes for 12.5 the support of the association. Each association, the 12.6 municipality in which it is organized, and the officers of each, 12.7 are authorized to do all things required by this section as a 12.8 condition for the use of public funds or the levy of taxes for 12.9 the support of the association. 12.10 Subd.313. [CITATION.] This section may be cited as the 12.11 "Police and Firefighters' Relief Associations Guidelines Act of 12.12 1969." 12.13 Sec. 2. Minnesota Statutes 2000, section 69.80, is amended 12.14 to read: 12.15 69.80 [AUTHORIZED ADMINISTRATIVE EXPENSES.] 12.16 (a) Notwithstanding any provision of law to the contrary, 12.17 the payment of the following necessary, reasonable and direct 12.18 expenses of maintaining, protecting and administering the 12.19 special fund, when provided for in the bylaws of the association 12.20 and approved by the board of trustees,shall constitute12.21 constitutes authorized administrative expenses of a police, 12.22 salaried firefighters', or volunteer firefighters' relief 12.23 association organized under any law of this state: 12.24(a)(1) office expense, including, but not limited to, 12.25 rent, utilities, equipment, supplies, postage, periodical 12.26 subscriptions, furniture, fixtures, and salaries of 12.27 administrative personnel; 12.28(b)(2) salaries of the president, secretary, and treasurer 12.29 of the association, or their designees, and any other official 12.30 of the relief association to whom a salary is payable under 12.31 bylaws or articles of incorporation in effect on January 1, 12.32 1986, and their itemized expenses incurred as a result of 12.33 fulfilling their responsibilities as administrators of the 12.34 special fund; 12.35(c)(3) tuition, registration fees, organizational dues, 12.36 and other authorized expenses of the officers or members of the 13.1 board of trustees incurred in attending educational conferences, 13.2 seminars, or classes relating to the administration of the 13.3 relief association; 13.4(d)(4) audit, actuarial, medical, legal, and investment 13.5 and performance evaluation expenses; 13.6(e)(5) reimbursement to the officers and members of the 13.7 board of trustees, or their designees, for reasonable and 13.8 necessary expenses actually paid and incurred in the performance 13.9 of their duties as officers or members of the board; and 13.10(f)(6) premiums on fiduciary liability insurance and 13.11 official bonds for the officers, members of the board of 13.12 trustees, and employees of the relief association. 13.13 (b) Any other expenses of the relief associationshallmust 13.14 be paid from the general fund of the association, if one 13.15 exists. If a relief association has only one fund, that 13.16 fundshall be deemed to beis the special fund for purposes of 13.17 this section. If a relief association has a special fund and a 13.18 general fund, and any expense of the relief association that is 13.19 directly related to the purposes for which both funds were 13.20 established, the payment of that expenseshallmust be 13.21 apportioned between the two funds on the basis of the benefits 13.22 derived by each fund. 13.23 Sec. 3. Minnesota Statutes 2000, section 353A.08, 13.24 subdivision 6a, is amended to read: 13.25 Subd. 6a. [MILITARY SERVICE CONTRIBUTION AND REFUND.] A 13.26 person who was an active member of a local police or 13.27 firefighters relief association upon its consolidation with the 13.28 public employees retirement association, and who was otherwise 13.29 eligible for automatic service credit for military service under 13.30sectionsMinnesota Statutes 2000, section 423.57and 424.23, and 13.31 who has not elected the type of benefit coverage provided by the 13.32 public employees police and fire fund at the time of 13.33 consolidation, must make employee contributions under section 13.34 353.01, subdivision 16, paragraph (h), to receive allowable 13.35 service credit from the association for a military service leave 13.36 after the effective date of the consolidation. A person who 14.1 later elects, under subdivision 3, to retain benefit coverage 14.2 under the bylaws of the local relief association is eligible for 14.3 a refund from the association at the time of retirement. The 14.4 association shall refund the employee contributions plus 14.5 interest at the rate of six percent, compounded quarterly, from 14.6 the date on which contributions were made until the first day of 14.7 the month in which the refund is paid. The employer shall 14.8 receive a refund of the employer contributions. The association 14.9 shall not pay a refund to a person who later elects, under 14.10 subdivision 3, the type of benefit coverage provided by the 14.11 public employees police and fire fund or to the person's 14.12 employer. 14.13 Sec. 4. Minnesota Statutes 2000, section 423A.17, is 14.14 amended to read: 14.15 423A.17 [CONTINUATION OF SURVIVING SPOUSE BENEFITS UPON 14.16 REMARRIAGE.] 14.17 (a) Notwithstanding a provision ofsection 69.48; 423.387,14.18subdivision 1; 423.58, subdivision 1; 423.810, subdivision 1; or14.19424.24, subdivision 1, or otherlaw, article of incorporation, 14.20 or bylaw governing a local police or salaried firefighters 14.21 relief association to the contrary, the governing body of a 14.22 municipality may mandate the applicable local police or salaried 14.23 firefighters relief association to provide that a surviving 14.24 spouse benefit is payable for the life of the surviving spouse 14.25 and remains payable even in the event of the remarriage of the 14.26 surviving spouse. 14.27 (b) If the surviving spouse benefit change described in 14.28 paragraph (a) is made, the change applies to a surviving spouse 14.29 benefit payable on the effective date of the change and to the 14.30 potential surviving spouses of all active, deferred, or retired 14.31 members of the relief association who have that status on the 14.32 effective date of the change. 14.33 (c) In addition, if the surviving spouse benefit change 14.34 described in paragraph (a) is made a person who formerly was 14.35 receiving surviving spouse benefits from the relief association 14.36 and who had those benefits discontinued by virtue of the 15.1 remarriage is entitled, upon application, to a resumption of the 15.2 surviving spouse benefit, beginning with the last day of the 15.3 month following receipt of the application by the secretary of 15.4 the relief association. Nothing in this section authorizes the 15.5 payment of a benefit amount to an estate. 15.6 (d) The change must be made by a municipal resolution 15.7 adopted by a majority vote of the municipality. The resolution 15.8 must be filed by the secretary of the relief association with 15.9 the executive director of the legislative commission on pensions 15.10 and retirement, the state auditor, and the secretary of state. 15.11 Sec. 5. Minnesota Statutes 2000, section 423A.171, is 15.12 amended to read: 15.13 423A.171 [BYLAW AMENDMENTS.] 15.14 (a) Notwithstanding a provision ofsection 69.48; 423.387,15.15subdivision 1; 423.58, subdivision 1; 423.810, subdivision 1;15.16423B.10; or 424.24, subdivision 1, or otherlaw governing a 15.17 local police or salaried firefighters' relief association to the 15.18 contrary, the board of trustees of a local relief association 15.19 governed by section 69.77 or its successor board under chapter 15.20 353A or 353B, with municipal approval as provided in section 15.21 69.77, subdivision2i11, may amend the bylaws of the relief 15.22 association to provide that a surviving spouse benefit is 15.23 payable to a surviving spouse who married a deferred or retired 15.24 member after the member's retirement, provided the marriage 15.25 occurred at least five years before the death of the member. 15.26 (b) If the surviving spouse benefit change described in 15.27 paragraph (a) is made, the change applies to a surviving spouse 15.28 benefit payable on the effective date of the change and to the 15.29 potential surviving spouses of all deferred or retired members 15.30 of the relief association who have that status on the effective 15.31 date of the change. 15.32 (c) The bylaw amendment is not effective until a certified 15.33 copy of the amendment and the municipal approval has been filed 15.34 by the municipal clerk with the executive director of the 15.35 legislative commission on pensions and retirement, the state 15.36 auditor, and the secretary of state. 16.1 (d) Notwithstanding the provisions of section 353B.11, a 16.2 surviving spouse benefit change made under this section for a 16.3 relief association that has consolidated with the public 16.4 employees retirement association is effective upon approval by 16.5 the public employees retirement association and the municipality 16.6pursuant tounder paragraph (c). 16.7 Sec. 6. Minnesota Statutes 2000, section 424A.09, is 16.8 amended to read: 16.9 424A.09 [APPLICATION TO CERTAIN RELIEF ASSOCIATIONS.] 16.10 This chaptershall supersedesupersedes any special law 16.11 applicable to any municipal volunteer firefighters' relief 16.12 association or independent nonprofit firefighting corporation 16.13 specifically authorizing the relief association or nonprofit 16.14 firefighting corporation to exceed the service pension 16.15 limitations contained in Minnesota Statutes 1978, sections 69.06 16.16 and 69.691. Any relief association which amended its bylaws to 16.17 provide for a full pro rata service pension amount at the 16.18 specified retirement age with 15 years service credit or 75 16.19 percent of the pro rata service pension amount at the specified 16.20 retirement age with ten years of servicepursuant tounder 16.21 Minnesota Statutes 1978, section 69.06, may continue to provide 16.22 the specified service pension amounts at the applicable years of 16.23 credited service to any member who has credit for at least ten 16.24 or 15 years, whichever is the applicable minimum service period 16.25 specified in the bylaws governing the relief association, on or 16.26 before December 31, 1979notwithstanding section 424A.02. 16.27 Sec. 7. [APPLICATION; BLOOMINGTON FIREFIGHTERS RELIEF 16.28 ASSOCIATION.] 16.29 To the extent that Minnesota Statutes 2000, chapter 424, 16.30 applied to the Bloomington firefighters relief association on 16.31 the day before the effective date of section 5, Minnesota 16.32 Statutes 2000, chapter 424, continues to apply to the 16.33 Bloomington firefighters relief association after that date. 16.34 Sec. 8. [REVISOR INSTRUCTIONS.] 16.35 (a) In the next and subsequent editions of Minnesota 16.36 Statutes, the revisor of statutes shall not print Minnesota 17.1 Statutes, sections 423.41 to 423.62, but shall denote those 17.2 sections as "[LOCAL, CITY OF FAIRMONT, POLICE PENSIONS.]." 17.3 (b) In the next and subsequent editions of Minnesota 17.4 Statutes, the revisor of statutes shall, in each section 17.5 indicated in column A, replace the cross-reference specified in 17.6 column B with the cross-reference set forth in column C: 17.7 Column A Column B Column C 17.8 69.021, subd. 10 69.77, subd. 2a 69.77, subd. 3 17.9 69.021, subd. 10 69.77, subd. 2b 69.77, subd. 4 17.10 69.021, subd. 10 69.77, subd. 2c 69.77, subd. 5 17.11 299A.465, subd. 5 424.03 Minnesota Statutes, 17.12 2000, 424.03 17.13 353A.07, subd. 6 69.77, subd. 2a 69.77, subd. 3 17.14 353A.09, subd. 4 69.77, subd. 2a 69.77, subd. 3 17.15 356.216 69.77, subd. 2b 69.77, subd. 4 17.16 356.219, subd. 2 69.77, subd. 2g 69.77, subd. 9 17.17 423.01, subd. 2 69.77, subd. 2b 69.77, subd. 4 17.18 423A.18 69.77, subd. 2i 69.77, subd. 11 17.19 423A.19, subd. 4 69.77, subd. 2i 69.77, subd. 11 17.20 423B.06, subd. 1 69.77, subd. 2a 69.77, subd. 3 17.21 423B.06, subd. 1 69.77, subd. 2b 69.77, subd. 4 17.22 423B.06, subd. 1 69.77, subd. 2c 69.77, subd. 5 17.23 423B.06, subd. 1 69.77, subd. 2d 69.77, subd. 6 17.24 423B.06, subd. 1 69.77, subd. 2e 69.77, subd. 7 17.25 423B.06, subd. 1 69.77, subd. 2f 69.77, subd. 8 17.26 423B.21, subd. 1 69.77, subd. 2b 69.77, subd. 4 17.27 Sec. 9. [REPEALER; OBSOLETE POLICE AND FIRE PENSION LAWS.] 17.28 Subdivision 1. [FIRST CLASS CITY FIRE; 17.29 REPEALER.] Minnesota Statutes 2000, sections 69.25; 69.26; 17.30 69.27; 69.28; 69.29; 69.30; 69.32; 69.361; 69.37; 69.38; 69.39; 17.31 69.40; 69.41; 69.42; 69.43; 69.44; 69.45; 69.46; 69.47; 69.48; 17.32 69.49; 69.50; 69.51; 69.52; 69.53; and 69.62, are repealed. 17.33 Subd. 2. [THIRD CLASS CITY POLICE; REPEALER.] Minnesota 17.34 Statutes 2000, sections 423.37; 423.371; 423.372; 423.373; 17.35 423.374; 423.375; 423.377; 423.378; 423.379; 423.38; 423.381; 17.36 423.382; 423.383; 423.384; 423.385; 423.386; 423.387; 423.388; 18.1 423.389; 423.39; 423.391; and 423.392, are repealed. 18.2 Subd. 3. [SECOND CLASS CITY POLICE; REPEALER.] Minnesota 18.3 Statutes 2000, sections 423.801; 423.802; 423.803; 423.804; 18.4 423.805; 423.806; 423.808; 423.809; 423.810; 423.812; 423.813; 18.5 423.814; and 423.90, are repealed. 18.6 Subd. 4. [SECOND CLASS CITY FIRE; REPEALER.] Minnesota 18.7 Statutes 2000, sections 424.01; 424.02; 424.03; 424.04; 424.05; 18.8 424.06; 424.08; 424.14; 424.15; 424.16; 424.165; 424.17; 424.18; 18.9 424.19; 424.20; 424.21; 424.22; 424.23; 424.24; 424.25; 424.27; 18.10 424.28; and 424.29, are repealed. 18.11 Subd. 5. [ALBERT LEA FIRE; REPEALER.] Laws 1943, chapters 18.12 170 and 397; Laws 1947, chapter 274; Laws 1949, chapters 87 and 18.13 281; Laws 1951, chapters 233, 420, and 435; Laws 1953, chapters 18.14 44 and 406; Laws 1957, chapter 127; Laws 1959, chapter 207; Laws 18.15 1963, chapter 643; Laws 1984, chapter 574, section 23; Laws 18.16 1985, chapter 261, section 36; and Laws 1993, chapter 72, are 18.17 repealed. 18.18 Subd. 6. [ALBERT LEA POLICE; REPEALER.] Laws 1965, chapter 18.19 174; Laws 1976, chapter 247; and Laws 1985, chapter 261, section 18.20 36, are repealed. 18.21 Subd. 7. [ANOKA POLICE; REPEALER.] Laws 1965, chapter 174; 18.22 Laws 1973, chapter 587; Laws 1978, chapter 563, section 28; and 18.23 Laws 1981, chapter 224, sections 263 and 264, are repealed. 18.24 Subd. 8. [AUSTIN FIRE; REPEALER.] Laws 1943, chapter 170; 18.25 Laws 1949, chapter 87; Laws 1951, chapters 45 and 435; Laws 18.26 1957, chapter 164; Laws 1963, chapter 36; Laws 1965, chapter 18.27 418; Laws 1976, chapter 36; Laws 1978, chapter 579; Laws 1980, 18.28 chapter 341, sections 9 and 10; Laws 1981, chapter 224, sections 18.29 268 and 270; Laws 1992, chapter 455; and Laws 1994, chapter 490, 18.30 are repealed. 18.31 Subd. 9. [AUSTIN POLICE; REPEALER.] Laws 1943, chapter 18.32 432; Laws 1976, chapter 36; Laws 1980, chapter 341, sections 9 18.33 and 10; and Laws 1981, chapter 224, sections 268 and 270, are 18.34 repealed. 18.35 Subd. 10. [BLOOMINGTON POLICE; REPEALER.] Laws 1965, 18.36 chapter 498; Laws 1975, chapter 121; Laws 1978, chapter 563, 19.1 section 17; Laws 1980, chapter 341, section 6; Laws 1981, 19.2 chapter 224, section 240; and Laws 1993, chapter 202, article 1, 19.3 are repealed. 19.4 Subd. 11. [BRAINERD POLICE; REPEALER.] Laws 1959, chapter 19.5 437, is repealed. 19.6 Subd. 12. [BROOKLYN CENTER POLICE; REPEALER.] Laws 1967, 19.7 chapter 736; and Laws 1978, chapter 563, section 18, are 19.8 repealed. 19.9 Subd. 13. [BUHL POLICE; REPEALER.] Laws 1957, chapter 630; 19.10 Laws 1975, chapter 425; Laws 1976, chapter 247; Laws 1981, 19.11 chapter 68, section 43; Laws 1982, chapter 578, article II, 19.12 section 1, subdivision 8; Laws 1984, chapter 574, sections 18 19.13 and 20; Laws 1985, chapter 261, section 18; and Laws 1986, 19.14 chapter 458, section 23, are repealed. 19.15 Subd. 14. [CHISHOLM FIRE; REPEALER.] Laws 1935, chapter 19.16 208; Laws 1937, chapters 132 and 253; Laws 1939, chapter 124; 19.17 Laws 1947, chapter 329; Laws 1951, chapter 144; Laws 1953, 19.18 chapter 391; Laws 1955, chapters 293 and 827; Laws 1961, chapter 19.19 631; Laws 1971, chapter 809; Laws 1973, chapter 433; Laws 1976, 19.20 chapter 78; Laws 1978, chapter 648; Laws 1979, chapter 131, 19.21 section 3; Laws 1981, chapter 68, sections 36 and 37; and Laws 19.22 1991, chapter 269, article 2, section 12, are repealed. 19.23 Subd. 15. [CHISHOLM POLICE; REPEALER.] Laws 1945, chapter 19.24 74; Laws 1949, chapter 164; Laws 1953, chapter 235; Laws 1959, 19.25 chapter 211; Laws 1961, chapter 290; Laws 1971, chapter 810; 19.26 Laws 1973, chapter 433; Laws 1976, chapter 78; Laws 1978, 19.27 chapters 563, section 27, and 648; Laws 1979, chapter 131, 19.28 section 3; Laws 1981, chapters 68, sections 31, 32, and 33; and 19.29 224, section 261; and Laws 1991, chapter 269, article 2, section 19.30 12, are repealed. 19.31 Subd. 16. [CLOQUET FIRE; REPEALER.] Laws 1941, chapter 19.32 196; Laws 1953, chapter 253; Laws 1955, chapter 42; Laws 1961, 19.33 chapter 295; Laws 1965, chapter 594; Laws 1967, chapter 783; and 19.34 Laws 1969, chapter 716, are repealed. 19.35 Subd. 17. [COLUMBIA HEIGHTS FIRE; REPEALER.] Laws 1965, 19.36 chapter 605; Laws 1975, chapter 424; Laws 1977, chapter 374, 20.1 sections 38, 39, 40, 41, 42, 43, 44, 45, 46, 47, 48, 49, 50, 51, 20.2 52, 53, 54, 55, 56, 57, 58, 59, and 60; Laws 1978, chapter 563, 20.3 sections 29 and 30; and Laws 1981, chapter 224, section 267, are 20.4 repealed. 20.5 Subd. 18. [COLUMBIA HEIGHTS POLICE; REPEALER.] Laws 1977, 20.6 chapter 374, sections 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 20.7 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 20.8 30, 31, 32, 33, 34, 35, 36, and 37; and Laws 1993, chapter 126, 20.9 are repealed. 20.10 Subd. 19. [CROOKSTON FIRE; REPEALER.] Laws 1949, chapter 20.11 378; Laws 1957, chapter 144; Laws 1963, chapter 636; Laws 1971, 20.12 chapter 51; Laws 1978, chapter 563, sections 24, 25, and 26; 20.13 Laws 1981, chapter 224, sections 252 and 253; and Laws 1983, 20.14 chapter 291, sections 9, 10, 11, 12, 13, 14, 15, 16, and 17, are 20.15 repealed. 20.16 Subd. 20. [CROOKSTON POLICE; REPEALER.] Laws 1976, chapter 20.17 85; Laws 1977, chapter 275; Laws 1983, chapter 84, section 1; 20.18 and Laws 1984, chapter 574, section 26, are repealed. 20.19 Subd. 21. [CRYSTAL POLICE; REPEALER.] Laws 1963, chapter 20.20 619; Laws 1969, chapter 1087; and Laws 1980, chapter 607, 20.21 article XV, section 23, are repealed. 20.22 Subd. 22. [DULUTH FIRE; REPEALER.] Laws 1917, chapter 196; 20.23 Laws 1919, chapter 515; Laws 1955, chapter 188; Laws 1961, 20.24 chapter 186; Laws 1963, chapter 208; Laws 1965, chapter 179; 20.25 Laws 1967, chapter 732; Laws 1975, chapter 127; Laws 1976, 20.26 chapter 78, section 4; Laws 1977, chapter 164, section 3; Laws 20.27 1992, chapter 448, section 1; and Laws 1994, chapter 474, are 20.28 repealed. 20.29 Subd. 23. [DULUTH POLICE; REPEALER.] Laws 1915, chapter 20.30 68; Laws 1921, chapter 118; Laws 1923, chapter 54; Laws 1925, 20.31 chapter 197; Laws 1943, chapter 267; Laws 1949, chapter 153; 20.32 Laws 1953, chapter 91; Laws 1955, chapter 187; Laws 1959, 20.33 chapter 191; Laws 1975, chapter 408; Laws 1976, chapter 99; Laws 20.34 1980, chapter 600, section 11; and Laws 1992, chapter 448, are 20.35 repealed. 20.36 Subd. 24. [EVELETH FIRE; REPEALER.] Laws 1935, chapter 21.1 208; Laws 1937, chapters 132 and 253; Laws 1939, chapter 124; 21.2 Laws 1941, chapters 74 and 182; Laws 1947, chapter 329; Laws 21.3 1951, chapter 144; Laws 1953, chapter 391; Laws 1955, chapter 21.4 293; Laws 1961, chapter 620; Laws 1963, chapter 670; and Laws 21.5 1969, chapter 552, are repealed. 21.6 Subd. 25. [EVELETH POLICE; REPEALER.] Laws 1965, chapter 21.7 636; and Laws 1969, chapter 670, are repealed. 21.8 Subd. 26. [FARIBAULT FIRE; REPEALER.] Laws 1947, chapter 21.9 43; Laws 1949, chapter 154; Laws 1951, chapter 43; Laws 1957, 21.10 chapter 36; Laws 1961, chapter 443; Laws 1967, chapter 807; Laws 21.11 1969, chapter 614; Laws 1975, chapter 389; Laws 1984, chapter 21.12 574, section 22; Laws 1985, chapter 259, sections 5 and 6; Laws 21.13 1985, First Special Session chapter 16, article 2, section 6; 21.14 and Laws 1993, chapter 112, section 2, are repealed. 21.15 Subd. 27. [FARIBAULT POLICE; REPEALER.] Laws 1985, chapter 21.16 259, sections 5 and 6; Laws 1985, First Special Session chapter 21.17 16, article 2, section 6, are repealed. 21.18 Subd. 28. [FRIDLEY FIRE; REPEALER.] Laws 1969, chapter 21.19 594, is repealed. 21.20 Subd. 29. [FRIDLEY POLICE; REPEALER.] Laws 1977, chapter 21.21 83, is repealed. 21.22 Subd. 30. [HIBBING FIRE; REPEALER.] Laws 1935, chapter 21.23 192; Laws 1943, chapter 413; Laws 1945, chapter 182; Laws 1947, 21.24 chapter 101; Laws 1951, chapter 48; Laws 1955, chapter 294; Laws 21.25 1959, chapter 208; Laws 1967, chapter 816; Laws 1969, chapter 21.26 686; Laws 1971, chapter 614; Laws 1975, chapter 254, sections 5 21.27 and 6; Laws 1977, chapter 169; Laws 1981, chapter 224, section 21.28 260; Laws 1982, chapter 443; Laws 1987, chapter 372, article 2, 21.29 sections 7, 8, and 9; and Laws 1991, chapter 269, article 2, 21.30 sections 12 and 13, are repealed. 21.31 Subd. 31. [HIBBING POLICE; REPEALER.] Laws 1931, chapter 21.32 48; Laws 1933, chapter 122; Laws 1939, chapter 304; Laws 1945, 21.33 chapter 300; Laws 1947, chapter 40; Laws 1949, chapter 191; Laws 21.34 1951, chapter 243; Laws 1953, chapter 401; Laws 1957, chapter 21.35 793; Laws 1965, chapter 536; Laws 1967, chapter 678; Laws 1969, 21.36 chapter 672; Laws 1971, chapter 807; Laws 1983, chapter 74; Laws 22.1 1987, chapter 372, article 2, section 7; and Laws 1991, chapter 22.2 269, article 2, section 12, are repealed. 22.3 Subd. 32. [MANKATO FIRE; REPEALER.] Laws 1949, chapter 22.4 144; Laws 1953, chapter 37; Laws 1957, chapter 16; Laws 1971, 22.5 chapter 407; Extra Session Laws 1971, chapter 41; Laws 1981, 22.6 chapter 224, sections 258 and 259; and Laws 1989, chapter 319, 22.7 article 11, section 3, are repealed. 22.8 Subd. 33. [MANKATO POLICE; REPEALER.] Laws 1971, chapter 22.9 407; Extra Session Laws 1971, chapter 41; Laws 1981, chapter 22.10 224, sections 258 and 259; Laws 1986, chapter 458, section 34; 22.11 and Laws 1987, chapter 372, article 2, section 12, are repealed. 22.12 Subd. 34. [MOORHEAD FIRE; REPEALER.] Laws 1951, chapter 22.13 499; Laws 1955, chapter 75; Laws 1965, chapter 190; Laws 1969, 22.14 chapter 138; Laws 1975, chapter 120; Laws 1978, chapter 563, 22.15 sections 12 and 13; Laws 1979, chapter 216, sections 34, 35, 36, 22.16 37, 38, 39, 40, 41, 42, 43, and 44; Laws 1981, chapter 224, 22.17 section 236; and Laws 1982, chapter 578, article III, section 22.18 18, are repealed. 22.19 Subd. 35. [MOORHEAD POLICE; REPEALER.] Laws 1945, chapter 22.20 277; Laws 1967, chapter 775; Laws 1978, chapter 563, section 19; 22.21 Laws 1979, chapter 216, sections 27, 28, 29, 30, 31, and 44; 22.22 Laws 1980, chapter 600, section 16; Laws 1981, chapter 224, 22.23 section 243; and Laws 1982, chapter 578, article III, section 22.24 18, are repealed. 22.25 Subd. 36. [NEW ULM POLICE; REPEALER.] Laws 1965, chapter 22.26 174; Laws 1974, chapter 251; Laws 1981, chapter 224, sections 22.27 265 and 266; and Laws 1985, chapter 261, section 20, are 22.28 repealed. 22.29 Subd. 37. [RED WING FIRE; REPEALER.] Laws 1953, chapter 22.30 348; Laws 1955, chapter 49; Laws 1957, chapter 10; Laws 1961, 22.31 chapter 300; Laws 1965, chapter 604; Laws 1973, chapter 359; 22.32 Laws 1975, chapter 254, sections 1, 2, 3, and 4; and Laws 1984, 22.33 chapter 574, section 24, are repealed. 22.34 Subd. 38. [RED WING POLICE; REPEALER.] Laws 1965, chapter 22.35 174; Laws 1973, chapter 346; Laws 1983, chapter 291, section 8; 22.36 and Laws 1994, chapter 410, are repealed. 23.1 Subd. 39. [RICHFIELD FIRE; REPEALER.] Laws 1955, chapter 23.2 348; Extra Session Laws 1961, chapter 28; Laws 1963, chapter 23.3 464; Laws 1967, chapter 798; Laws 1978, chapter 563, sections 20 23.4 and 21; Laws 1980, chapter 607, article XV, section 23; Laws 23.5 1981, chapter 224, section 244; and Laws 1997, chapter 241, 23.6 article 2, sections 2, 3, 4, 5, 6, 9, 10, 13, 14, and 20, are 23.7 repealed. 23.8 Subd. 40. [RICHFIELD POLICE; REPEALER.] Laws 1957, chapter 23.9 455; Laws 1965, chapter 458; Laws 1978, chapter 563, section 16; 23.10 Laws 1980, chapter 607, article XV, section 23; Laws 1981, 23.11 chapter 224, section 239; and Laws 1991, chapter 96, are 23.12 repealed. 23.13 Subd. 41. [ROCHESTER FIRE; REPEALER.] Laws 1959, chapter 23.14 131; Laws 1969, chapter 694; Laws 1978, chapter 563, section 14; 23.15 Laws 1980, chapter 600, sections 18 and 22; and Laws 1981, 23.16 chapter 224, section 237, are repealed. 23.17 Subd. 42. [ROCHESTER POLICE; REPEALER.] Laws 1969, chapter 23.18 641; Laws 1975, chapter 368, section 54; Laws 1978, chapters 23.19 563, section 23; and 793, section 96; Laws 1980, chapter 600, 23.20 sections 18 and 22; and Laws 1981, chapter 224, section 248, are 23.21 repealed. 23.22 Subd. 43. [ST. CLOUD FIRE; REPEALER.] Laws 1961, chapter 23.23 343; Laws 1963, chapter 453; Laws 1967, chapter 702; Laws 1974, 23.24 chapter 382; Laws 1977, chapter 270; Laws 1978, chapter 690, 23.25 sections 9 and 10; and Laws 1982, chapter 402, are repealed. 23.26 Subd. 44. [ST. CLOUD POLICE; REPEALER.] Laws 1973, chapter 23.27 432; Laws 1980, chapter 341, sections 2, 3, 4, and 5; Laws 1984, 23.28 chapter 574, section 25; and Laws 1999, chapter 222, article 3, 23.29 section 6, are repealed. 23.30 Subd. 45. [ST. LOUIS PARK FIRE; REPEALER.] Laws 1967, 23.31 chapter 730; Laws 1969, chapter 576; Laws 1978, chapter 563, 23.32 section 22; Laws 1981, chapter 224, section 247; and Laws 1985, 23.33 chapter 261, sections 32, 33, 34, and 35, are repealed. 23.34 Subd. 46. [ST. LOUIS PARK POLICE; REPEALER.] Laws 1963, 23.35 chapter 454; Laws 1980, chapter 600, section 17; Laws 1984, 23.36 chapter 574, section 19; and Laws 1990, chapter 589, article 1, 24.1 section 7, are repealed. 24.2 Subd. 47. [ST. PAUL FIRE; REPEALER.] Laws 1917, chapter 24.3 196; Laws 1919, chapter 515; Laws 1955, chapter 375; Laws 1957, 24.4 chapters 256 and 257; Laws 1961, chapter 376; Laws 1963, chapter 24.5 221; Laws 1965, chapter 790; Laws 1967, chapters 644 and 708; 24.6 Laws 1969, chapters 443, 669, and 671; Laws 1973, chapter 287; 24.7 Laws 1975, chapter 423; Laws 1977, chapter 164, section 1; Laws 24.8 1981, chapter 68, section 35; Laws 1989, chapter 319, article 24.9 11, section 12; Laws 1992, chapters 422 and 563, sections 3, 4, 24.10 and 5; Laws 1993, chapter 110; Laws 1996, chapter 448, article 24.11 2, section 1; and Laws 1997, chapter 241, article 2, sections 11 24.12 and 15, are repealed. 24.13 Subd. 48. [ST. PAUL POLICE; REPEALER.] Special Laws 1889, 24.14 chapter 425; Special Laws 1891, chapter 11; Laws 1897, chapters 24.15 389 and 390; Laws 1919, chapter 68; Laws 1921, chapter 118; Laws 24.16 1923, chapter 54; Laws 1925, chapter 197; Laws 1955, chapter 24.17 151; Laws 1961, chapters 434 and 435, section 2; Laws 1963, 24.18 chapter 271; Laws 1965, chapter 465; Laws 1969, chapters 442, 24.19 668, and 671; Laws 1971, chapter 549; Laws 1973, chapter 286; 24.20 Laws 1980, chapter 600, sections 12, 13, 14, and 15; Laws 1981, 24.21 chapter 68, section 34; Laws 1983, chapter 47; Laws 1988, 24.22 chapter 709, article 8, section 5; Laws 1989, chapter 319, 24.23 article 11, sections 2 and 12; Laws 1992, chapters 393, section 24.24 1; 563, section 5; and 586, section 1; Laws 1994, chapter 409; 24.25 Laws 1996, chapter 448, article 2, section 1; and Laws 1997, 24.26 chapter 241, article 2, sections 11 and 15, are repealed. 24.27 Subd. 49. [SOUTH ST. PAUL FIRE; REPEALER] Laws 1943, 24.28 chapter 397; Laws 1947, chapter 274; Laws 1949, chapter 281; 24.29 Laws 1951, chapters 233 and 420; Laws 1953, chapters 44 and 406; 24.30 Laws 1957, chapter 127; Laws 1961, chapter 747; Laws 1963, 24.31 chapter 715; Laws 1965, chapter 457; Laws 1969, chapter 849; and 24.32 Laws 1971, chapter 178, are repealed. 24.33 Subd. 50. [SOUTH ST. PAUL POLICE; REPEALER.] Laws 1994, 24.34 chapter 541, section 3, is repealed. 24.35 Subd. 51. [THIEF RIVER FALLS POLICE; REPEALER.] Laws 1981, 24.36 chapters 68, sections 41 and 42; 224, sections 272 and 273; Laws 25.1 1985, chapter 261, section 14; and Laws 1992, chapter 431, 25.2 section 1, are repealed. 25.3 Subd. 52. [VIRGINIA POLICE; REPEALER.] Laws 1935, chapters 25.4 92 and 259; Laws 1937, chapter 197; Laws 1949, chapter 235; Laws 25.5 1965, chapter 174; Laws 1982, chapter 574, sections 3, 4, 5, 6, 25.6 and 8; Laws 1985, chapter 261, sections 15 and 16; Laws 1989, 25.7 chapter 319, article 11, section 4; and Laws 1992, chapter 392, 25.8 section 1, are repealed. 25.9 Subd. 53. [WEST ST. PAUL FIRE; REPEALER.] Laws 1961, 25.10 chapter 399; Laws 1965, chapter 540; Laws 1982, chapter 610, 25.11 sections 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, and 20; 25.12 and Laws 1984, chapter 574, section 33, are repealed. 25.13 Subd. 54. [WEST ST. PAUL POLICE; REPEALER] Laws 1965, 25.14 chapter 174; Laws 1967, chapter 751; Laws 1981, chapter 297, 25.15 sections 1 and 2; Laws 1987, chapter 372, article 2, section 10; 25.16 and Laws 1995, chapter 262, article 10, section 4, are repealed. 25.17 Subd. 55. [WINONA FIRE; REPEALER.] Extra Session Laws 25.18 1961, chapter 80; Laws 1963, chapter 443; and Laws 1967, chapter 25.19 848, are repealed. 25.20 Subd. 56. [WINONA POLICE; REPEALERS.] Laws 1959, chapter 25.21 108; Extra Session Laws 1961, chapter 80; Laws 1977, chapter 25.22 429, section 62; Laws 1986, chapter 359, sections 22, 23, 24, 25.23 and 25; and Laws 1988, chapter 709, article 9, section 5, are 25.24 repealed. 25.25 Subd. 57. [OTHER REPEALER.] Minnesota Statutes 2000, 25.26 sections 69.78; 297I.10, subdivision 2; and 423A.03, are 25.27 repealed. 25.28 Sec. 10. [EFFECTIVE DATE.] 25.29 Sections 1 to 9 are effective on July 1, 2002. 25.30 ARTICLE 2 25.31 RETIREMENT PLAN ALLOWABLE SERVICE 25.32 CREDIT FOR STRIKE PERIODS 25.33 Section 1. Minnesota Statutes 2001 Supplement, section 25.34 352.01, subdivision 11, is amended to read: 25.35 Subd. 11. [ALLOWABLE SERVICE.] "Allowable service" means: 25.36 (1) Service by an employee for which on or before July 1, 26.1 1957, the employee was entitled to allowable service credit on 26.2 the records of the system by reason of employee contributions in 26.3 the form of salary deductions, payments in lieu of salary 26.4 deductions, or in any other manner authorized by Minnesota 26.5 Statutes 1953, chapter 352, as amended by Laws 1955, chapter 239. 26.6 (2) Service by an employee for which on or before July 1, 26.7 1961, the employee chose to obtain credit for service by making 26.8 payments to the fund under Minnesota Statutes 1961, section 26.9 352.24. 26.10 (3) Except as provided in clauses (8) and (9), service by 26.11 an employee after July 1, 1957, for any calendar month in which 26.12 the employee is paid salary from which deductions are made, 26.13 deposited, and credited in the fund, including deductions made, 26.14 deposited, and credited as provided in section 352.041. 26.15 (4) Except as provided in clauses (8) and (9), service by 26.16 an employee after July 1, 1957, for any calendar month for which 26.17 payments in lieu of salary deductions are made, deposited, and 26.18 credited in the fund, as provided in section 352.27 and 26.19 Minnesota Statutes 1957, section 352.021, subdivision 4. 26.20 For purposes of clauses (3) and (4), except as provided in 26.21 clauses (8) and (9), any salary paid for a fractional part of 26.22 any calendar month, including the month of separation from state 26.23 service, is deemed the compensation for the entire calendar 26.24 month. 26.25 (5) The period of absence from their duties by employees 26.26 who are temporarily disabled because of injuries incurred in the 26.27 performance of duties and for which disability the state is 26.28 liable under the workers' compensation law until the date 26.29 authorized by the director for the commencement of payments of a 26.30 total and permanent disability benefit from the retirement fund. 26.31 (6) Service covered by a refund repaid as provided in 26.32 section 352.23 or 352D.05, subdivision 4, except service 26.33 rendered as an employee of the adjutant general for which the 26.34 person has credit with the federal civil service retirement 26.35 system. 26.36 (7) Service before July 1, 1978, by an employee of the 27.1 transit operating division of the metropolitan transit 27.2 commission or by an employee on an authorized leave of absence 27.3 from the transit operating division of the metropolitan transit 27.4 commission who is employed by the labor organization which is 27.5 the exclusive bargaining agent representing employees of the 27.6 transit operating division, which was credited by the 27.7 metropolitan transit commission-transit operating division 27.8 employees retirement fund or any of its predecessor plans or 27.9 funds as past, intermediate, future, continuous, or allowable 27.10 service as defined in the metropolitan transit 27.11 commission-transit operating division employees retirement fund 27.12 plan document in effect on December 31, 1977. 27.13 (8) Service after July 1, 1983, by an employee who is 27.14 employed on a part-time basis for less than 50 percent of full 27.15 time, for which the employee is paid salary from which 27.16 deductions are made, deposited, and credited in the fund, 27.17 including deductions made, deposited, and credited as provided 27.18 in section 352.041 or for which payments in lieu of salary 27.19 deductions are made, deposited, and credited in the fund as 27.20 provided in section 352.27 shall be credited on a fractional 27.21 basis either by pay period, monthly, or annually based on the 27.22 relationship that the percentage of salary earned bears to a 27.23 full-time salary, with any salary paid for the fractional 27.24 service credited on the basis of the rate of salary applicable 27.25 for a full-time pay period, month, or a full-time year. For 27.26 periods of part-time service that is duplicated service credit, 27.27 section 356.30, subdivision 1, clauses (i) and (j), govern. 27.28 Allowable service determined and credited on a fractional 27.29 basis shall be used in calculating the amount of benefits 27.30 payable, but service as determined on a fractional basis must 27.31 not be used in determining the length of service required for 27.32 eligibility for benefits. 27.33 (9) Any period of authorized leave of absence without pay 27.34 that does not exceed one year and for which the employee 27.35 obtained credit by payment to the fund in lieu of salary 27.36 deductions. To obtain credit, the employee shall pay an amount 28.1 equal to the employee and employer contribution rate in section 28.2 352.04, subdivisions 2 and 3, multiplied by the employee's 28.3 hourly rate of salary on the date of return from leave of 28.4 absence and by the days and months of the leave of absence 28.5 without pay for which the employee wants allowable service 28.6 credit. The employing department, at its option, may pay the 28.7 employer amount on behalf of its employees. Payments made under 28.8 this clause must include interest at an annual rate of 8.5 28.9 percent compounded annually from the date of termination of the 28.10 leave of absence to the date payment is made unless payment is 28.11 completed within one year of the return from leave of absence. 28.12 (10) A period purchased under section 356.555. 28.13 (11) A period of time during which the employee was on 28.14 strike without pay, not to exceed a period of one year, if the 28.15 employee makes a payment in lieu of salary deductions or makes a 28.16 prior service credit purchase payment, whichever applies. If 28.17 the payment is made within 12 months, the payment by the 28.18 employee must be an amount equal to the employee and employer 28.19 contribution rates set forth in section 352.04, subdivisions 2 28.20 and 3, applied to the employee's rate of salary in effect on the 28.21 conclusion of the strike for the period of the strike without 28.22 pay, plus compound interest at a monthly rate of 0.71 percent 28.23 from the last day of the strike until the date of payment. The 28.24 employer, at its option, for all similarly situated employees, 28.25 may pay the employer contribution equivalent amount on behalf of 28.26 the employee. If the payment is not made within 12 months, the 28.27 payment must be in an amount equal to the payment amount 28.28 determined under section 356.55 or 356.551, whichever applies. 28.29 Sec. 2. Minnesota Statutes 2001 Supplement, section 28.30 353.01, subdivision 16, is amended to read: 28.31 Subd. 16. [ALLOWABLE SERVICE; LIMITS AND COMPUTATION.] (a) 28.32 "Allowable service" means: 28.33 (1) service during years of actual membership in the course 28.34 of which employee contributions were made, periods covered by 28.35 payments in lieu of salary deductions under section 353.35; 28.36 (2) service in years during which the public employee was 29.1 not a member but for which the member later elected, while a 29.2 member, to obtain credit by making payments to the fund as 29.3 permitted by any law then in effect; 29.4 (3) a period of authorized leave of absence with pay from 29.5 which deductions for employee contributions are made, deposited, 29.6 and credited to the fund; 29.7 (4) a period of authorized personal, parental, or medical 29.8 leave of absence without pay, including a leave of absence 29.9 covered under the federal Family Medical Leave Act, that does 29.10 not exceed one year, and during or for which a member obtained 29.11 full or fractional service credit for each month in the leave 29.12 period by payments to the fund made in place of salary 29.13 deductions. The payments must be made in an amount or amounts 29.14 based on the member's average salary on which deductions were 29.15 paid for the last six months of public service, or for that 29.16 portion of the last six months while the member was in public 29.17 service, to apply to the period in either case that immediately 29.18 precedes the commencement of the leave of absence. If the 29.19 employee elects to pay the employee contributions for the period 29.20 of any authorized personal, parental, or medical leave of 29.21 absence without pay, or for any portion of the leave, the 29.22 employee shall also, as a condition to the exercise of the 29.23 election, pay to the fund an amount equivalent to the required 29.24 employer and the additional employer contributions, if any, for 29.25 the employee. The payment must be made within one year from the 29.26 expiration of the leave of absence or within 20 days after 29.27 termination of public service under subdivision 11a. The 29.28 employer, if by appropriate action of its governing body, which 29.29 is made a part of its official records, and which is adopted 29.30 before the date of the first payment of the employee 29.31 contribution, may certify to the association in writing its 29.32 commitment to pay the employer and additional employer 29.33 contributions from the proceeds of a tax levy made under section 29.34 353.28. Payments under this paragraph must include interest at 29.35 an annual rate of 8.5 percent compounded annually from the date 29.36 of the termination of the leave of absence to the date payment 30.1 is made. An employee shall return to public service and render 30.2 a minimum of three months of allowable service in order to be 30.3 eligible to pay employee and employer contributions for a 30.4 subsequent authorized leave of absence without pay. Upon 30.5 payment, the employee must be granted allowable service credit 30.6 for full calendar months or fractions of a month during the 30.7 leave period as described in paragraph (d), clauses (1) and (2), 30.8 based on the salary or the compensated hours used in computing 30.9 the payment amount; 30.10 (5) a periodic, repetitive leave that is offered to all 30.11 employees of a governmental subdivision. The leave program may 30.12 not exceed 208 hours per annual normal work cycle as certified 30.13 to the association by the employer. A participating member 30.14 obtains service credit by making employee contributions in an 30.15 amount or amounts based on the member's average salary that 30.16 would have been paid if the leave had not been taken. The 30.17 employer shall pay the employer and additional employer 30.18 contributions on behalf of the participating member. The 30.19 employee and the employer are responsible to pay interest on 30.20 their respective shares at the rate of 8.5 percent a year, 30.21 compounded annually, from the end of the normal cycle until full 30.22 payment is made. An employer shall also make the employer and 30.23 additional employer contributions, plus 8.5 percent interest, 30.24 compounded annually, on behalf of an employee who makes employee 30.25 contributions but terminates public service. The employee 30.26 contributions must be made within one year after the end of the 30.27 annual normal working cycle or within 20 days after termination 30.28 of public service, whichever is sooner. The association shall 30.29 prescribe the manner and forms to be used by a governmental 30.30 subdivision in administering a periodic, repetitive leave. Upon 30.31 payment, the member must be granted allowable service credit for 30.32 full calendar months or fractions of a month during the leave 30.33 period as described in paragraph (d), clauses (1) and (2), based 30.34 on the salary or the compensated hours used in computing the 30.35 payment amount; 30.36 (6) an authorized temporary layoff under subdivision 12. 31.1 For temporary layoffs that begin before January 1, 2002, 31.2 allowable service credit is limited to three months allowable 31.3 service per authorized temporary layoff in one calendar year. 31.4 For temporary layoffs that begin on or after January 1, 2002, 31.5 allowable service credit for the calendar month in which the 31.6 member does not receive salary due to the layoff must be 31.7 determined using the following formula: 31.8 (i) members who earned one month of allowable service 31.9 credit for each of the nine calendar months of compensated 31.10 employment with the governmental subdivision authorizing the 31.11 layoff that immediately preceded the layoff shall receive one 31.12 month of allowable service credit, limited to three months of 31.13 allowable service credit per year, for each month of the 31.14 temporary layoff; or 31.15 (ii) members who earned less than nine months of allowable 31.16 service credit in the year of compensated employment with the 31.17 governmental subdivision authorizing the layoff that immediately 31.18 preceded the layoff shall receive allowable service credit on a 31.19 fractional basis for each month of the authorized layoff, 31.20 limited to three months of allowable service credit, determined 31.21 by dividing the total number of months of service credit earned 31.22 for the compensated employment by nine and multiplying the 31.23 resulting number by the total number of months in the layoff 31.24 period that are not compensated;or31.25 (7) a period during which a member is on an authorized 31.26 leave of absence to enter military service in the armed forces 31.27 of the United States, provided that the member returns to public 31.28 service upon discharge from military service under section 31.29 192.262 and pays into the fund employee contributions based upon 31.30 the employee's salary at the date of return from military 31.31 service. Payment must be made within three times the length of 31.32 the military leave period, or five years of the date of 31.33 discharge from the military service, whichever is less. The 31.34 amount of these contributions must be in accord with the 31.35 contribution rates and salary limitations, if any, in effect 31.36 during the leave, plus interest at an annual rate of 8.5 percent 32.1 compounded annually from the date of return to public service to 32.2 the date payment is made. The matching employer contribution 32.3 and additional employer contribution under section 353.27, 32.4 subdivisions 3 and 3a, must be paid by the governmental 32.5 subdivision employing the member upon return to public service 32.6 if the member makes the employee contributions. The 32.7 governmental subdivision involved may appropriate money for 32.8 those payments. A member may not receive credit for a voluntary 32.9 extension of military service at the instance of the member 32.10 beyond the initial period of enlistment, induction, or call to 32.11 active duty. Upon payment, the employee must be granted 32.12 allowable service credit for full calendar months or fractions 32.13 of a month during the leave period as described in paragraph 32.14 (d), clauses (1) and (2), based on the salary or compensated 32.15 hours used in computing the payment amount.; or 32.16 (8) a period of time during which a member who is a state 32.17 employee was on strike without pay, not to exceed a period of 32.18 one year, if the member makes a payment in lieu of salary 32.19 deductions or makes a prior service credit purchase payment, 32.20 whichever applies. If the payment is made within 12 months, the 32.21 payment by the member must be an amount equal to the employee, 32.22 employer, and employer additional contribution rates set forth 32.23 in section 353.27, subdivisions 2, 3, and 3a, applied to the 32.24 employee's rate of salary in effect on the conclusion of the 32.25 strike for the period of the strike without pay, plus compound 32.26 interest at a monthly rate of 0.71 percent from the last day of 32.27 the strike until the date of payment. The employer, at its 32.28 option, for all similarly situated state employees, may pay the 32.29 employer contribution equivalent amount on behalf of the 32.30 member. If the payment is not made within 12 months, the 32.31 payment must be in an amount equal to the payment amount 32.32 determined under section 356.55 or 356.551, whichever applies. 32.33 (b) For calculating benefits under sections 353.30, 353.31, 32.34 353.32, and 353.33 for state officers and employees displaced by 32.35 the Community Corrections Act, chapter 401, and transferred into 32.36 county service under section 401.04, "allowable service" means 33.1 combined years of allowable service as defined in paragraph (a), 33.2 clauses (1) to (6), and section 352.01, subdivision 11. 33.3 (c) For a public employee who has prior service covered by 33.4 a local police or firefighters relief association that has 33.5 consolidated with the public employees retirement association or 33.6 to which section 353.665 applies, and who has elected the type 33.7 of benefit coverage provided by the public employees police and 33.8 fire fund either under section 353A.08 following the 33.9 consolidation or under section 353.665, subdivision 4, 33.10 "applicable service" is a period of service credited by the 33.11 local police or firefighters relief association as of the 33.12 effective date of the consolidation based on law and on bylaw 33.13 provisions governing the relief association on the date of the 33.14 initiation of the consolidation procedure. 33.15 (d) For persons who, after January 1, 2002, either first 33.16 become members or terminated membership under subdivision 11b, 33.17 and again become members, of the public employees retirement 33.18 plan, the public employees police and fire plan under this 33.19 chapter, or the local government correctional employee 33.20 retirement plan under chapter 353E, whichever applies, 33.21 "allowable service" means credit for compensated hours from 33.22 which deductions are made, or for which payments are made in 33.23 lieu of salary deductions as provided under this subdivision, 33.24 and which are deposited and credited in the fund as provided in 33.25 section 353.27, determined as follows: 33.26 (1) one month of allowable service credit for each month 33.27 during which the employee has received salary for 80 or more 33.28 compensated hours; or 33.29 (2) a fraction of one month of allowable service for each 33.30 month for which the employee has received salary for less than 33.31 80 compensated hours equal to the percentage relationship that 33.32 the number of compensated hours bear to 80 hours. 33.33 (e) Elected officials and other public employees who are 33.34 compensated solely on an annual basis shall be granted a full 33.35 year of credit for each year for which compensation is earned. 33.36 (f) Allowable service that is determined and credited on a 34.1 fractional basis must be used only in calculating the amount of 34.2 benefits payable. In determining the length of service required 34.3 for vesting, a member shall be granted a month of service credit 34.4 for each month in which the member received compensation from 34.5 which employee contributions were deducted. For periods of 34.6 part-time service that are duplicated service credit, section 34.7 356.30, subdivision 1, paragraphs (g) and (h), govern. 34.8 (g) No member shall receive more than 12 months of 34.9 allowable service credit in a year either for vesting purposes 34.10 or for benefit calculation purposes. 34.11 (h) "Allowable service" also means a period purchased under 34.12 section 356.555. 34.13 Sec. 3. Minnesota Statutes 2001 Supplement, section 34.14 354.05, subdivision 13, is amended to read: 34.15 Subd. 13. [ALLOWABLE SERVICE.] "Allowable service" means: 34.16 (1) Any service rendered by a teacher for which on or 34.17 before July 1, 1957, the teacher's account in the retirement 34.18 fund was credited by reason of employee contributions in the 34.19 form of salary deductions, payments in lieu of salary 34.20 deductions, or in any other manner authorized by Minnesota 34.21 Statutes 1953, sections 135.01 to 135.13, as amended by Laws 34.22 1955, chapters 361, 549, 550, 611, or 34.23 (2) Any service rendered by a teacher for which on or 34.24 before July 1, 1961, the teacher elected to obtain credit for 34.25 service by making payments to the fund pursuant to Minnesota 34.26 Statutes 1980, section 354.09 and section 354.51, or 34.27 (3) Any service rendered by a teacher after July 1, 1957, 34.28 for any calendar month when the member receives salary from 34.29 which deductions are made, deposited and credited in the fund, 34.30 or 34.31 (4) Any service rendered by a person after July 1, 1957, 34.32 for any calendar month where payments in lieu of salary 34.33 deductions are made, deposited and credited into the fund as 34.34 provided in Minnesota Statutes 1980, section 354.09, subdivision 34.35 4, and section 354.53, or 34.36 (5) Any service rendered by a teacher for which the teacher 35.1 elected to obtain credit for service by making payments to the 35.2 fund pursuant to Minnesota Statutes 1980, section 354.09, 35.3 subdivisions 1 and 4, sections 354.50, 354.51, Minnesota 35.4 Statutes 1957, section 135.41, subdivision 4, Minnesota Statutes 35.5 1971, section 354.09, subdivision 2, or Minnesota Statutes, 1973 35.6 Supplement, section 354.09, subdivision 3, or 35.7 (6) Both service during years of actual membership in the 35.8 course of which contributions were currently made and service in 35.9 years during which the teacher was not a member but for which 35.10 the teacher later elected to obtain credit by making payments to 35.11 the fund as permitted by any law then in effect, or 35.12 (7) Any service rendered where contributions were made and 35.13 no allowable service credit was established because of the 35.14 limitations contained in Minnesota Statutes 1957, section 35.15 135.09, subdivision 2, as determined by the ratio between the 35.16 amounts of money credited to the teacher's account in a fiscal 35.17 year and the maximum retirement contribution allowable for that 35.18 year, or 35.19 (8) A period purchased under section 356.555., or 35.20 (9) A period of time during which a teacher who is a state 35.21 employee was on strike without pay, not to exceed a period of 35.22 one year, if the teacher makes a payment in lieu of salary 35.23 deductions or makes a prior service credit purchase payment, 35.24 whichever applies. If the payment is made within 12 months, the 35.25 payment by the teacher must be an amount equal to the employee 35.26 and employer contribution rates set forth in section 354.42, 35.27 subdivisions 2 and 3, applied to the teacher's rate of salary in 35.28 effect on the conclusion of the strike for the period of the 35.29 strike without pay, plus compound interest at a monthly rate of 35.30 0.71 percent from the last day of the strike until the date of 35.31 payment. The employer, at its option, for all similarly 35.32 situated state employees, may pay the employer contribution 35.33 equivalent amount on behalf of the teacher. If the payment is 35.34 not made within 12 months, the payment must be in an amount 35.35 equal to the payment amount determined under section 356.55 or 35.36 356.551, whichever applies. 36.1 Sec. 4. [EFFECTIVE DATE.] 36.2 (a) Sections 1, 2, and 3 are effective retroactive to July 36.3 1, 2001. 36.4 (b) The authority to obtain credit for allowable service 36.5 under section 1, clause (11); section 2, paragraph (a), clause 36.6 (8); and section 3, clause (9), expires 12 months after the date 36.7 of enactment. 36.8 ARTICLE 3 36.9 PERA MEMBERSHIP ELIGIBILITY 36.10 AND SERVICE CREDIT PRORATION 36.11 Section 1. Minnesota Statutes 2001 Supplement, section 36.12 353.01, subdivision 2a, is amended to read: 36.13 Subd. 2a. [INCLUDED EMPLOYEES.] (a) Public employees whose 36.14 salary from one governmental subdivision exceeds $425 in any 36.15 month shall participate as members of the association. If the 36.16 salary is less than $425 in a subsequent month, the employee 36.17 retains membership eligibility. Eligible public employees shall 36.18 participate as members of the association with retirement 36.19 coverage by the public employees retirement plan or the public 36.20 employees police and fire retirement plan under this chapter, or 36.21 the local government correctional employees retirement plan 36.22 under chapter 353E, whichever applies, as a condition of their 36.23 employment on the first day of employment unless they: 36.24 (1) are specifically excluded under subdivision 2b; 36.25 (2) do not exercise their option to elect retirement 36.26 coverage in the association as provided in subdivision 2d, 36.27 paragraph (a); or 36.28 (3) are employees of the governmental subdivisions listed 36.29 in subdivision 2d, paragraph (b), where the governmental 36.30 subdivision has not elected to participate as a governmental 36.31 subdivision covered by the association. 36.32 (b) A public employee who was a member of the association 36.33 on June 30, 2002, based on employment that qualified for 36.34 membership coverage by the public employees retirement plan or 36.35 the public employees police and fire plan under this chapter, or 36.36 the local government correctional employees retirement plan 37.1 under chapter 353E as of June 30, 2002, retains that membership 37.2 until the employee terminates public employment under 37.3 subdivision 11a or terminates membership under subdivision 11b. 37.4 Sec. 2. Minnesota Statutes 2001 Supplement, section 37.5 353.01, subdivision 2b, is amended to read: 37.6 Subd. 2b. [EXCLUDED EMPLOYEES.] The following public 37.7 employees are not eligible to participate as members of the 37.8 association with retirement coverage by the public employees 37.9 retirement plan, the local government correctional employees 37.10 retirement plan under chapter 353E, or the public employees 37.11 police and fire retirement plan: 37.12 (1) public officers, other than county sheriffs, who are 37.13 elected to a governing body, or persons who are appointed to 37.14 fill a vacancy in an elective office of a governing body, whose 37.15 term of office first commences on or after July 1, 2002, for the 37.16 service to be rendered in that elective position. Elected 37.17 governing body officials who were active members of the 37.18 association's coordinated or basic retirement plans as of June 37.19 30, 2002, continue participation throughout incumbency in office 37.20 until termination of public service occurs as defined in 37.21 subdivision 11a; 37.22 (2) election officers or election judges; 37.23 (3) patient and inmate personnel who perform services for a 37.24 governmental subdivision; 37.25 (4) employees who are hired for a temporary position under 37.26 subdivision 12a, and employees who resign from a nontemporary 37.27 position and accept a temporary position within 30 days in the 37.28 same governmental subdivision. An employer must not apply the 37.29 definition of temporary position so as to exclude employees who 37.30 are hired to fill positions that are permanent or that are for 37.31 an unspecified period but who are serving a probationary period 37.32 at the start of the employment. If the period of employment 37.33 extends beyond six consecutive months and the employee earns 37.34 more than $425 from one governmental subdivision in any calendar 37.35 month, the department head shall report the employee for 37.36 membership and require employee deductions be made on behalf of 38.1 the employee under section 353.27, subdivision 4. 38.2 The membership eligibility of an employee who resigns or is 38.3 dismissed from a temporary position and within 30 days accepts 38.4 another temporary position in the same governmental subdivision 38.5 is determined on the total length of employment rather than on 38.6 each separate position. Membership eligibility of an employee 38.7 who holds concurrent temporary and nontemporary positions in one 38.8 governmental subdivision is determined by the length of 38.9 employment and salary of each separate position; 38.10 (5) employees who are employed by reason of work emergency 38.11 caused by fire, flood, storm, or similar disaster; 38.12 (6) employees who by virtue of their employment in one 38.13 governmental subdivision are required by law to be a member of 38.14 and to contribute to any of the plans or funds administered by 38.15 the Minnesota state retirement system, the teachers retirement 38.16 association, the Duluth teachers retirement fund association, 38.17 the Minneapolis teachers retirement association, the St. Paul 38.18 teachers retirement fund association, the Minneapolis employees 38.19 retirement fund, or any police or firefighters relief 38.20 association governed by section 69.77 that has not consolidated 38.21 with the public employees retirement association, or any local 38.22 police or firefighters consolidation account but who have not 38.23 elected the type of benefit coverage provided by the public 38.24 employees police and fire fund under sections 353A.01 to 38.25 353A.10, or any persons covered by section 353.665, subdivision 38.26 4, 5, or 6, who have not elected public employees police and 38.27 fire plan benefit coverage. This clause must not be construed 38.28 to prevent a person from being a member of and contributing to 38.29 the public employees retirement association and also belonging 38.30 to and contributing to another public pension fund for other 38.31 service occurring during the same period of time. A person who 38.32 meets the definition of "public employee" in subdivision 2 by 38.33 virtue of other service occurring during the same period of time 38.34 becomes a member of the association unless contributions are 38.35 made to another public retirement fund on the salary based on 38.36 the other service or to the teachers retirement association by a 39.1 teacher as defined in section 354.05, subdivision 2; 39.2 (7) persons who are members of a religious order and are 39.3 excluded from coverage under the federal Old Age, Survivors, 39.4 Disability, and Health Insurance Program for the performance of 39.5 service as specified in United States Code, title 42, section 39.6 410(a)(8)(A), as amended through January 1, 1987, if no 39.7 irrevocable election of coverage has been made under section 39.8 3121(r) of the Internal Revenue Code of 1954, as amended; 39.9 (8) employeeswho at the time they are hired by aof a 39.10 governmental subdivision who have not reached the age of 23 and 39.11 are enrolled on a full-time basis to attend or are attending 39.12 classes on a full-time basis at an accredited school, college, 39.13 or university in an undergraduate, graduate, or 39.14 professional-technical program, or a public or charter high 39.15 school, if the employment is predicated on the student status of39.16the individual; 39.17 (9) resident physicians, medical interns, and pharmacist 39.18 residents and pharmacist interns who are serving in a degree or 39.19 residency program in public hospitals; 39.20 (10) students who are serving in an internship or residency 39.21 program sponsored by an accredited educational institution; 39.22 (11) persons who hold a part-time adult supplementary 39.23 technical college license who render part-time teaching service 39.24 in a technical college; 39.25 (12) except for employees of Hennepin county, foreign 39.26 citizens working for a governmental subdivision with a work 39.27 permit of less than three years, or an H-1b visa valid for less 39.28 than three years of employment. Upon notice to the association 39.29 that the work permit or visa extends beyond the three-year 39.30 period, the foreign citizens areeligibleto be reported for 39.31 membership from the date of the extension; 39.32 (13) public hospital employees who elected not to 39.33 participate as members of the association before 1972 and who 39.34 did not elect to participate from July 1, 1988, to October 1, 39.35 1988; 39.36 (14) except as provided in section 353.86, volunteer 40.1 ambulance service personnel, as defined in subdivision 35, but 40.2 persons who serve as volunteer ambulance service personnel may 40.3 still qualify as public employees under subdivision 2 and may be 40.4 members of the public employees retirement association and 40.5 participants in the public employees retirement fund or the 40.6 public employees police and fire fund, whichever applies, on the 40.7 basis of compensation received from public employment service 40.8 other than service as volunteer ambulance service personnel; 40.9 (15) except as provided in section 353.87, volunteer 40.10 firefighters, as defined in subdivision 36, engaging in 40.11 activities undertaken as part of volunteer firefighter duties; 40.12 provided that a person who is a volunteer firefighter may still 40.13 qualify as a public employee under subdivision 2 and may be a 40.14 member of the public employees retirement association and a 40.15 participant in the public employees retirement fund or the 40.16 public employees police and fire fund, whichever applies, on the 40.17 basis of compensation received from public employment activities 40.18 other than those as a volunteer firefighter; 40.19 (16) pipefitters and associated trades personnel employed 40.20 by independent school district No. 625, St. Paul, with coverage 40.21 under a collective bargaining agreement by the pipefitters local 40.22 455 pension plan who were either first employed after May 1, 40.23 1997, or, if first employed before May 2, 1997, elected to be 40.24 excluded under Laws 1997, chapter 241, article 2, section 12; 40.25 (17) electrical workers, plumbers, carpenters, and 40.26 associated trades personnel employed by independent school 40.27 district No. 625, St. Paul, or the city of St. Paul, who have 40.28 retirement coverage under a collective bargaining agreement by 40.29 the electrical workers local 110 pension plan, the united 40.30 association plumbers local 34 pension plan, or the carpenters 40.31 local 87 pension plan who were either first employed after May 40.32 1, 2000, or, if first employed before May 2, 2000, elected to be 40.33 excluded under Laws 2000, chapter 461, article 7, section 5; 40.34 (18) bricklayers, allied craftworkers, cement masons, 40.35 glaziers, glassworkers, painters, allied tradesworkers, and 40.36 plasterers employed by the city of St. Paul or independent 41.1 school district No. 625, St. Paul, with coverage under a 41.2 collective bargaining agreement by the bricklayers and allied 41.3 craftworkers local 1 pension plan, the cement masons local 633 41.4 pension plan, the glaziers and glassworkers local L-1324 pension 41.5 plan, the painters and allied trades local 61 pension plan, or 41.6 the Twin Cities plasterers local 265 pension plan who were 41.7 either first employed after May 1, 2001, or if first employed 41.8 before May 2, 2001, elected to be excluded under Laws 2001, 41.9 First Special Session chapter 10, article 10, section 6; 41.10 (19) plumbers employed by the metropolitan airports 41.11 commission, with coverage under a collective bargaining 41.12 agreement by the plumbers local 34 pension plan, who either were 41.13 first employed after May 1, 2001, or if first employed before 41.14 May 2, 2001, elected to be excluded under Laws 2001, First 41.15 Special Session chapter 10, article 10, section 6; 41.16 (20) employees who are hired after June 30, 2002, to fill 41.17 seasonal positions under subdivision 12b which are limited in 41.18 duration by the employer to 185 consecutive calendar days or 41.19 less in eachbusinessyear of employment with the governmental 41.20 subdivision; 41.21 (21) persons who are provided supported employment or 41.22 work-study positions by a governmental subdivision and who 41.23 participate in an employment or industries program maintained 41.24 for the benefit of these persons where the governmental 41.25 subdivision limits the position's duration to three years or 41.26 less, including persons participating in a federal or state 41.27 subsidized on-the-job training, work experience, senior citizen, 41.28 youth, or unemployment relief program where the training or work 41.29 experience is not provided as a part of, or for, future 41.30 permanent public employment; 41.31 (22) independent contractors and the employees of 41.32 independent contractors; and 41.33 (23) reemployed annuitants of the association during the 41.34 course of that reemployment. 41.35 Sec. 3. Minnesota Statutes 2001 Supplement, section 41.36 353.01, subdivision 11b, is amended to read: 42.1 Subd. 11b. [TERMINATION OF MEMBERSHIP.] (a) "Termination 42.2 of membership" means the conclusion of membership in the 42.3 association and occurs: 42.4 (1) upon termination of public service under subdivision 42.5 11a; 42.6 (2) when a member does not return to work within 30 days of 42.7 the expiration of an authorized temporary layoff under 42.8 subdivision 12 or an authorized leave of absence under 42.9 subdivision 31 as evidenced by the appropriate record filed by 42.10 the governmental subdivision; or 42.11 (3) when a person files a written election to discontinue 42.12 employee deductions under section 353.27, subdivision 7, 42.13 paragraph (a), clause (1). 42.14 (b) The termination of membership must be reported to the 42.15 association by the governmental subdivision. 42.16 (c) If the employee subsequently returns to a position in 42.17 the same governmental subdivision, the employee shall not again 42.18 be required to earn a salary in excess of $425 per month to 42.19 qualify for membership, unless the employee has taken a refund 42.20 of accumulated employee deduction plus interest under section 42.21 353.34, subdivision 1. 42.22 Sec. 4. Minnesota Statutes 2001 Supplement, section 42.23 353.01, subdivision 16, is amended to read: 42.24 Subd. 16. [ALLOWABLE SERVICE; LIMITS AND COMPUTATION.] (a) 42.25 "Allowable service" means: 42.26 (1) service during years of actual membership in the course 42.27 of which employee contributions were made, periods covered by 42.28 payments in lieu of salary deductions under section 353.35; 42.29 (2) service in years during which the public employee was 42.30 not a member but for which the member later elected, while a 42.31 member, to obtain credit by making payments to the fund as 42.32 permitted by any law then in effect; 42.33 (3) a period of authorized leave of absence with pay from 42.34 which deductions for employee contributions are made, deposited, 42.35 and credited to the fund; 42.36 (4) a period of authorized personal, parental, or medical 43.1 leave of absence without pay, including a leave of absence 43.2 covered under the federal Family Medical Leave Act, that does 43.3 not exceed one year, and during or for which a member obtained 43.4full or fractionalservice credit for each month in the leave 43.5 period by payments to the fund made in place of salary 43.6 deductions. The payments must be made in an amount or amounts 43.7 based on the member's average salary on which deductions were 43.8 paid for the last six months of public service, or for that 43.9 portion of the last six months while the member was in public 43.10 service, to apply to the period in either case that immediately 43.11 precedes the commencement of the leave of absence. If the 43.12 employee elects to pay the employee contributions for the period 43.13 of any authorized personal, parental, or medical leave of 43.14 absence without pay, or for any portion of the leave, the 43.15 employee shall also, as a condition to the exercise of the 43.16 election, pay to the fund an amount equivalent to the required 43.17 employer and the additional employer contributions, if any, for 43.18 the employee. The payment must be made within one year from the 43.19 expiration of the leave of absence or within 20 days after 43.20 termination of public service under subdivision 11a, whichever 43.21 is earlier. The employer,ifby appropriate action of its 43.22 governing body,which is made a part of its official records,43.23 and which is adopted before the date of the first payment of the 43.24 employee contribution, may certify to the association in writing 43.25 its commitment to pay the employer and additional employer 43.26 contributions from the proceeds of a tax levy made under section 43.27 353.28. Payments under this paragraph must include interest at 43.28 an annual rate of 8.5 percent compounded annually from the date 43.29 of the termination of the leave of absence to the date payment 43.30 is made. An employee shall return to public service and render 43.31 a minimum of three months of allowable service in order to be 43.32 eligible to pay employee and employer contributions for a 43.33 subsequent authorized leave of absence without pay. Upon 43.34 payment, the employee must be granted allowable service credit 43.35 forfull calendar months or fractions of a month duringthe 43.36leavepurchased periodas described in paragraph (d), clauses (1)44.1and (2), based on the salary or the compensated hours used in44.2computing the payment amount; 44.3 (5) a periodic, repetitive leave that is offered to all 44.4 employees of a governmental subdivision. The leave program may 44.5 not exceed 208 hours per annual normal work cycle as certified 44.6 to the association by the employer. A participating member 44.7 obtains service credit by making employee contributions in an 44.8 amount or amounts based on the member's average salary that 44.9 would have been paid if the leave had not been taken. The 44.10 employer shall pay the employer and additional employer 44.11 contributions on behalf of the participating member. The 44.12 employee and the employer are responsible to pay interest on 44.13 their respective shares at the rate of 8.5 percent a year, 44.14 compounded annually, from the end of the normal cycle until full 44.15 payment is made. An employer shall also make the employer and 44.16 additional employer contributions, plus 8.5 percent interest, 44.17 compounded annually, on behalf of an employee who makes employee 44.18 contributions but terminates public service. The employee 44.19 contributions must be made within one year after the end of the 44.20 annual normal working cycle or within 20 days after termination 44.21 of public service, whichever is sooner. The association shall 44.22 prescribe the manner and forms to be used by a governmental 44.23 subdivision in administering a periodic, repetitive leave. Upon 44.24 payment, the member must be granted allowable service credit for 44.25full calendar months or fractions of a month duringtheleave44.26 purchased periodas described in paragraph (d), clauses (1) and44.27(2), based on the salary or the compensated hours used in44.28computing the payment amount; 44.29 (6) an authorized temporary layoff under subdivision 12.44.30For temporary layoffs that begin before January 1, 2002,44.31allowable service credit is, limited to three months allowable 44.32 service per authorized temporary layoff in one calendar year. 44.33For temporary layoffs that begin on or after January 1, 2002,44.34allowable service credit for the calendar month in which the44.35member does not receive salary due to the layoff must be44.36determined using the following formula:45.1(i) members who earned one month of allowable service45.2credit for each of the nine calendar months of compensated45.3employment with the governmental subdivision authorizing the45.4layoff that immediately preceded the layoff shall receive one45.5month of allowable service credit, limited to three months of45.6allowable service credit per year, for each month of the45.7temporary layoff; or45.8(ii) members who earned less than nine months of allowable45.9service credit in the year of compensated employment with the45.10governmental subdivision authorizing the layoff that immediately45.11preceded the layoff shall receive allowable service credit on a45.12fractional basis for each month of the authorized layoff,45.13limited to three months of allowable service credit, determined45.14by dividing the total number of months of service credit earned45.15for the compensated employment by nine and multiplying the45.16resulting number by the total number of months in the layoff45.17period that are not compensatedAn employee who has received the 45.18 maximum service credit allowed for an authorized temporary 45.19 layoff must return to public service and must receive a minimum 45.20 of three months of allowable service subsequent to the layoff in 45.21 order to receive allowable service for a subsequent authorized 45.22 temporary layoff; or 45.23 (7) a period during which a member is on an authorized 45.24 leave of absence to enter military service in the armed forces 45.25 of the United States, provided thatif the member returns to 45.26 public service upon discharge from military service under 45.27 section 192.262 and pays into the fund employee contributions 45.28 based upon the employee's salary at the date of return from 45.29 military service. Payment must be made within a period that is 45.30 three times the length of the military leave period, or within 45.31 five years of the date of discharge from the military service, 45.32 whichever is less. Payment cannot be accepted following 20 days 45.33 after termination of public service under subdivision 11a. The 45.34 amount of these contributions must be in accord with the 45.35 contribution rates and salary limitations, if any, in effect 45.36 during the leave, plus interest at an annual rate of 8.5 percent 46.1 compounded annually from the date of return to public service to 46.2 the date payment is made. Thematchingcorresponding employer 46.3 contribution, and additional employer contributionunder section46.4353.27, subdivisions 3 and 3a, if applicable, must be paid by 46.5 the governmental subdivision employing the member upon the 46.6 person's return to public service if the member makes the 46.7 employee contributions. The governmental subdivision involved 46.8 may appropriate money for those payments. A member may not 46.9 receive credit for a voluntary extension of military service at 46.10 the instance of the member beyond the initial period of 46.11 enlistment, induction, or call to active duty. Upon payment, 46.12 the employee must be granted allowable service credit forfull46.13calendar months or fractions of a month duringtheleave46.14 purchased periodas described in paragraph (d), clauses (1) and46.15(2), based on the salary or compensated hours used in computing46.16the payment amount. 46.17 (b) For calculating benefits under sections 353.30, 353.31, 46.18 353.32, and 353.33 for state officers and employees displaced by 46.19 the Community Corrections Act, chapter 401, and transferred into 46.20 county service under section 401.04, "allowable service" 46.21 means the combined years of allowable service as defined in 46.22 paragraph (a), clauses (1) to (6), and section 352.01, 46.23 subdivision 11. 46.24 (c) For a public employee who has prior service covered by 46.25 a local police or firefighters relief association that has 46.26 consolidated with the public employees retirement association or 46.27 to which section 353.665 applies, and who has elected the type 46.28 of benefit coverage provided by the public employees police and 46.29 fire fund either under section 353A.08 following the 46.30 consolidation or under section 353.665, subdivision 4, 46.31 "applicable service" is a period of service credited by the 46.32 local police or firefighters relief association as of the 46.33 effective date of the consolidation based on law and on bylaw 46.34 provisions governing the relief association on the date of the 46.35 initiation of the consolidation procedure. 46.36 (d)For persons who, after January 1, 2002, either first47.1become members or terminated membership under subdivision 11b,47.2and again become members, of the public employees retirement47.3plan, the public employees police and fire plan under this47.4chapter, or the local government correctional employee47.5retirement plan under chapter 353E, whichever applies,47.6"allowable service" means credit for compensated hours from47.7which deductions are made, or for which payments are made in47.8lieu of salary deductions as provided under this subdivision,47.9and which are deposited and credited in the fund as provided in47.10section 353.27, determined as follows:47.11(1) one month of allowable service credit for each month47.12during which the employee has received salary for 80 or more47.13compensated hours; or47.14(2) a fraction of one month of allowable service for each47.15month for which the employee has received salary for less than47.1680 compensated hours equal to the percentage relationship that47.17the number of compensated hours bear to 80 hours.47.18(e) Elected officials and other public employees who are47.19compensated solely on an annual basis shall be granted a full47.20year of credit for each year for which compensation is earned.47.21(f) Allowable service that is determined and credited on a47.22fractional basis must be used only in calculating the amount of47.23benefits payable. In determining the length of service required47.24for vesting, a member shall be granted a month of service credit47.25for each month in which the member received compensation from47.26which employee contributions were deducted. For periods of47.27part-time service that are duplicated service credit, section47.28356.30, subdivision 1, paragraphs (g) and (h), govern.47.29(g)No member shall receive more than 12 months of 47.30 allowable service credit in a year either for vesting purposes 47.31 or for benefit calculation purposes. 47.32(h)(e) "Allowable service" also means a period purchased 47.33 under section 356.555. 47.34 Sec. 5. Minnesota Statutes 2000, section 353.01, is 47.35 amended by adding a subdivision to read: 47.36 Subd. 40. [REDUCED SALARY DURING PERIOD OF WORKERS' 48.1 COMPENSATION.] (a) A member who is receiving temporary workers' 48.2 compensation payments related to the member's service to the 48.3 public employer and who either is receiving a reduced salary 48.4 from the employer during that period or is receiving no salary 48.5 from the employer during that period is entitled to receive 48.6 allowable service and salary credit for the period of time that 48.7 the member is receiving the workers' compensation payments upon 48.8 making the payments specified in this subdivision. 48.9 (b) The differential salary amount is the difference 48.10 between the average rate of salary received by the member, if 48.11 any, during the period of time that the member is collecting 48.12 temporary workers' compensation payments and the average rate of 48.13 salary of the member on which contributions to the applicable 48.14 plan were made during the period of the last six months of 48.15 covered employment occurring immediately before beginning to 48.16 collect the temporary workers' compensation payments, applied to 48.17 the member's normal employment period, measured in hours or 48.18 otherwise, as applicable. 48.19 (c) To receive eligible service credit, the member shall 48.20 pay an amount equal to the applicable employee contribution rate 48.21 under section 353.27, subdivision 2; 353.65, subdivision 2; or 48.22 353E.03, subdivision 1, as applicable, multiplied by the 48.23 differential salary amount; plus an employer equivalent payment 48.24 equal to the applicable employer contribution rate in section 48.25 353.27, subdivision 3; 353.65, subdivision 3; or 353E.03, 48.26 subdivision 2, as applicable, multiplied by the differential 48.27 salary amount; plus, if applicable, an equivalent employer 48.28 additional amount equal to the additional employer contribution 48.29 rate in section 353.27, subdivision 3a, multiplied by the 48.30 differential salary amount. 48.31 (d) The employer may, by appropriate action of its 48.32 governing body and documented in its official records, pay the 48.33 employer equivalent contributions and, as applicable, the 48.34 equivalent employer additional contributions on behalf of the 48.35 member. 48.36 (e) Payment under this subdivision must include interest on 49.1 the contribution amount or amounts, whichever applies at an 8.5 49.2 percent annual rate prorated for applicable months from the date 49.3 on which the temporary workers' compensation payments terminate 49.4 to the date on which the payment or payments are received by the 49.5 executive director. Payment under this subdivision must be 49.6 completed within one year after the termination of the temporary 49.7 workers' compensation payments to the member, or within 20 days 49.8 after termination of public service under subdivision 11a, 49.9 whichever is earlier. 49.10 Sec. 6. Minnesota Statutes 2001 Supplement, section 49.11 353.27, subdivision 4, is amended to read: 49.12 Subd. 4. [EMPLOYER REPORTING REQUIREMENTS; CONTRIBUTIONS; 49.13 MEMBER STATUS.] (a) A representative authorized by the head of 49.14 each department shall deduct employee contributions from the 49.15 salary of each employee who qualifies for membership under this 49.16 chapter and remit payment in a manner prescribed by the 49.17 executive director for the aggregate amount of the employee 49.18 contributions, the employer contributions and the additional 49.19 employer contributions to be received within 14 calendar days. 49.20 The head of each department or the person's designee shall for 49.21 each pay period submit to the association a salary deduction 49.22 report in the format prescribed by the executive director. Data 49.23 required to be submitted as part of salary deduction reporting 49.24 must include, but are not limited to: 49.25 (1) the legal names and social security numbers of 49.26 employees who are members; 49.27 (2) the amount of each employee's salary deduction; 49.28 (3) the amount of salary from which each deduction was 49.29 made; 49.30 (4) the beginning and ending dates of the payroll period 49.31 covered and the date of actual payment; and 49.32 (5) adjustments or corrections covering past pay periods;49.33and49.34(6) the number of compensated hours of each employee during49.35the payroll period. 49.36 (b) Employers must furnish the data required for enrollment 50.1 for each new employee who qualifies for membership in the format 50.2 prescribed by the executive director. The required enrollment 50.3 data on new employees must be submitted to the association prior 50.4 to or concurrent with the submission of the initial employee 50.5 salary deduction. The employer shall also report to the 50.6 association all member employment status changes, such as leaves 50.7 of absence, terminations, and death, and shall report the 50.8 effective dates of those changes, on an ongoing basis for the 50.9 payroll cycle in which they occur. The employer shall furnish 50.10 data, forms, and reports as may be required by the executive 50.11 director for proper administration of the retirement system. 50.12 Before implementing new or different computerized reporting 50.13 requirements, the executive director shall give appropriate 50.14 advance notice to governmental subdivisions to allow time for 50.15 system modifications. 50.16 (c) Notwithstanding paragraph (a), the association may 50.17 provide for less frequent reporting and payments for small 50.18 employers. 50.19 Sec. 7. Minnesota Statutes 2001 Supplement, section 50.20 353.27, subdivision 11, is amended to read: 50.21 Subd. 11. [EMPLOYERS; REQUIRED TO FURNISH REQUESTED 50.22 INFORMATION.] All governmental subdivisions shall furnish 50.23 promptly such other information relative to the employment 50.24 status of all employees or former employees, including but not 50.25 limited to payroll abstracts pertaining to all past and present 50.26 employees, as may be requested by the association or its 50.27 executive director, including schedules of salaries applicable 50.28 to various categories of employment, and the number of actual or50.29estimated compensated hours for employees. In the event payroll 50.30 abstract records have been lost or destroyed, for whatever 50.31 reason or in whatever manner, so that such schedules of salaries 50.32 cannot be furnished therefrom, the employing governmental 50.33 subdivision, in lieu thereof, shall furnish to the association 50.34 an estimate of the earnings of any employee or former employee 50.35 for any period as may be requested by the association or its 50.36 executive director. Should the association receive such 51.1 schedules of estimated earnings, the executive director is 51.2 hereby authorized to use the same as a basis for making whatever 51.3 computations might be necessary for determining obligations of 51.4 the employee and employer to the retirement fund. If estimates 51.5 are not furnished by the employer pursuant to the request of the 51.6 association or its executive director, the association may 51.7 estimate the obligations of the employee and employer to the 51.8 retirement fund based upon such records as are in its 51.9 possession. Where payroll abstracts have been lost or 51.10 destroyed, the governmental agency need not furnish any 51.11 information pertaining to employment prior to July 1, 1963. The 51.12 association shall make no estimate of any obligation of any 51.13 employee, former employee, or employer covering employment prior 51.14 to July 1, 1963. 51.15 Sec. 8. Minnesota Statutes 2000, section 353.64, 51.16 subdivision 7a, is amended to read: 51.17 Subd. 7a. [PENSION COVERAGE FOR CERTAIN METROPOLITAN 51.18 TRANSIT POLICE OFFICERS.] A person who is employed as a 51.19full-timepolice officer on or after the first day of the first 51.20 payroll period after July 1, 1993, by the metropolitan council 51.21 and who is not eligible for coverage under the agreement with 51.22 the Secretary of the federal Department of Health and Human 51.23 Services making the provisions of the federal Old Age, 51.24 Survivors, and Disability Insurance Act because the person's 51.25 position is excluded from application under United States Code, 51.26 sections 418(d)(5)(A) and 418(d)(8)(D), and under section 51.27 355.07, is a member of the public employees police and fire fund 51.28 and is considered to be a police officer within the meaning of 51.29 this section. The metropolitan council shall deduct the 51.30 employee contribution from the salary of eachfull-timepolice 51.31 officer as required by section 353.65, subdivision 2, shall make 51.32 the employer contribution for eachfull-timepolice officer as 51.33 required by section 353.65, subdivision 3, and shall meet the 51.34 employer recording and reporting requirements in section 353.65, 51.35 subdivision 4. 51.36 Sec. 9. [REPEALER.] 52.1 Minnesota Statutes 2001 Supplement, section 353.01, 52.2 subdivision 39, is repealed. 52.3 Sec. 10. [APPLICATION.] 52.4 Section 8 applies in the counties of Anoka, Carver, Dakota, 52.5 Hennepin, Ramsey, Scott, and Washington. 52.6 Sec. 11. [EFFECTIVE DATE.] 52.7 (a) Except as provided in paragraphs (c) and (d), sections 52.8 1, 2, and 3 are effective on July 1, 2002. 52.9 (b) Sections 4, 6, 7, and 9 are effective retroactively 52.10 from January 1, 2002. 52.11 (c) The amendment to Minnesota Statutes, section 353.01, 52.12 subdivision 2b, clause (12), in section 2, is effective on the 52.13 day after the date on which the governing body of Hennepin 52.14 county and the chief clerical officer of the county complete in 52.15 a timely manner their compliance with Minnesota Statutes, 52.16 section 645.021, subdivisions 2 and 3. 52.17 (d) The amendments to Minnesota Statutes, section 353.01, 52.18 subdivision 2b, clauses (8) and (20), are effective 52.19 retroactively from January 1, 2002. 52.20 (e) Section 5 is effective on the day following final 52.21 enactment. 52.22 (f) Section 8 is effective July 1, 2002, and applies to 52.23 salaries earned by part-time metropolitan transit police 52.24 officers after June 30, 2002. 52.25 ARTICLE 4 52.26 PERA LOCAL GOVERNMENT CORRECTIONAL 52.27 RETIREMENT PLAN MODIFICATIONS 52.28 Section 1. Minnesota Statutes 2000, section 353E.02, 52.29 subdivision 1, is amended to read: 52.30 Subdivision 1. [RETIREMENT COVERAGE.]Local government52.31correctional service employees areThe members of the local 52.32 government correctional service retirement plan established by 52.33 this chapter are: 52.34 (1) local government correctional service employees as 52.35 defined in subdivision 2; and 52.36 (2) medical center protection officers as defined in 53.1 subdivision 2a. 53.2 Sec. 2. Minnesota Statutes 2000, section 353E.02, is 53.3 amended by adding a subdivision to read: 53.4 Subd. 2a. [MEDICAL CENTER PROTECTION OFFICER.] (a) A 53.5 medical center protection officer, for purposes of subdivision 53.6 1, is a person whom the employer certifies: 53.7 (1) is employed by the Hennepin county medical center as a 53.8 protection officer; 53.9 (2) is directly responsible for the direct security of the 53.10 medical center; 53.11 (3) is expected to respond to any incidents within the 53.12 medical center as part of the person's regular employment duties 53.13 and is trained to do so; and 53.14 (4) is a "public employee" as defined in section 353.01, 53.15 but is not a member of the public employees police and fire plan. 53.16 (b) The certification required under paragraph (a) must be 53.17 made in writing on a form prescribed by the executive director 53.18 of the public employees retirement association. 53.19 Sec. 3. Minnesota Statutes 2000, section 353E.03, is 53.20 amended to read: 53.21 353E.03 [CORRECTIONAL SERVICE PLAN CONTRIBUTIONS.] 53.22 Subdivision 1. [MEMBER CONTRIBUTIONS.] A member of the 53.23 local government correctional serviceemployeeretirement plan 53.24 shall make an employee contribution in an amount equal to 6.01 53.25 percent of salary. 53.26 Subd. 2. [EMPLOYER CONTRIBUTIONS.] The employer shall 53.27 contribute for a member of the local government correctional 53.28 serviceemployeeretirement plan an amount equal to 9.02 percent 53.29 of salary. 53.30 Sec. 4. Laws 2000, chapter 461, article 10, section 3, as 53.31 amended by Laws 2001, First Special Session chapter 10, article 53.32 3, section 28, is amended to read: 53.33 Sec. 3. [EFFECTIVE DATE.] 53.34 Section 1 is effective on the day following final enactment. 53.35Section 2 is effective on the first day of the first full pay53.36period beginning after January 1, 2003.54.1 Sec. 5. [REPEALER.] 54.2 Laws 2000, chapter 461, article 10, section 2, is repealed. 54.3 Sec. 6. [EFFECTIVE DATE.] 54.4 (a) Sections 1, 2, and 3 are effective on July 1, 2002. 54.5 (b) Section 4 is effective on the day following final 54.6 enactment. 54.7 (c) Section 5 is effective on August 1, 2002. 54.8 ARTICLE 5 54.9 PENSION COVERAGE FOR 54.10 PRIVATIZED PUBLIC HOSPITALS 54.11 Section 1. Minnesota Statutes 2000, section 353F.02, 54.12 subdivision 4, is amended to read: 54.13 Subd. 4. [MEDICAL FACILITY.] "Medical facility" means: 54.14 (1) the Glencoe area health center; 54.15 (2) the Luverne public hospital;and54.16 (3) the Waconia-Ridgeview medical center.; and 54.17 (4) the Kanabec hospital. 54.18 Sec. 2. [EFFECTIVE DATE.] 54.19 Section 1 is effective upon the latter of: 54.20 (1) the day after the governing body of Kanabec county and 54.21 its chief clerical officer timely complete their compliance with 54.22 Minnesota Statutes, section 645.021, subdivisions 2 and 3; and 54.23 (2) the first day of the month next following certification 54.24 by the executive director of the public employees retirement 54.25 association that the actuarial accrued liability of the special 54.26 benefit coverage proposed for extension to the privatized 54.27 Kanabec hospital employees under section 1 does not exceed the 54.28 actuarial gain otherwise to be accrued by the public employees 54.29 retirement association, as calculated by the consulting actuary 54.30 retained by the legislative commission on pensions and 54.31 retirement. The cost of the actuarial calculations must be 54.32 borne by the Kanabec hospital. 54.33 ARTICLE 6 54.34 CLOSED CHARTER SCHOOL 54.35 UNPAID RETIREMENT CONTRIBUTIONS 54.36 Section 1. Minnesota Statutes 2001 Supplement, section 55.1 354.05, subdivision 2, is amended to read: 55.2 Subd. 2. [TEACHER.] (a) "Teacher" means: 55.3 (1) a person who renders service as a teacher, supervisor, 55.4 principal, superintendent, librarian, nurse, counselor, social 55.5 worker, therapist, or psychologist inthea publicschools55.6 school of the state located outside of the corporate limits of 55.7the citiesa city of the first class, or in any charter school, 55.8 irrespective of the location of the school, or in any 55.9 charitable, penal, or correctional institutions of a 55.10 governmental subdivision, or who is engaged in educational 55.11 administration in connection with the state public school 55.12 system, but excluding the University of Minnesota, whether the 55.13 position be a public office or an employment, not including 55.14 members or officers of any general governing or managing board 55.15 or body; 55.16 (2) an employee of the teachers retirement association; 55.17 (3) a person who renders teaching service on a part-time 55.18 basis and who also renders other services for a single employing 55.19 unit. A person whose teaching service comprises at least 50 55.20 percent of the combined employment salary is a member of the 55.21 association for all services with the single employing unit. If 55.22 the person's teaching service comprises less than 50 percent of 55.23 the combined employment salary, the executive director must 55.24 determine whether all or none of the combined service is covered 55.25 by the association; or 55.26 (4) a person who is not covered by the plans established 55.27 under chapter 352D, 354A, or 354B and who is employed by the 55.28 board of trustees of the Minnesota state colleges and 55.29 universities system in an unclassified position as: 55.30 (i) a president, vice-president, or dean; 55.31 (ii) a manager or a professional in an academic or an 55.32 academic support program other than specified in item (i); 55.33 (iii) an administrative or a service support faculty 55.34 position; or 55.35 (iv) a teacher or a research assistant. 55.36 (b)Teacher"Teacher" does not mean: 56.1 (1) a person who works for a school or institution as an 56.2 independent contractor as defined by the Internal Revenue 56.3 Service; 56.4 (2) a person employed in subsidized on-the-job training, 56.5 work experience or public service employment as an enrollee 56.6 under the federal Comprehensive Employment and Training Act from 56.7 and after March 30, 1978, unless the person has, as of the later 56.8 of March 30, 1978, or the date of employment, sufficient service 56.9 credit in the retirement association to meet the minimum vesting 56.10 requirements for a deferred retirement annuity, or the employer 56.11 agrees in writing on forms prescribed by the executive director 56.12 to make the required employer contributions, including any 56.13 employer additional contributions, on account of that person 56.14 from revenue sources other than funds provided under the federal 56.15 Comprehensive Training and Employment Act, or the person agrees 56.16 in writing on forms prescribed by the executive director to make 56.17 the required employer contribution in addition to the required 56.18 employee contribution; 56.19 (3) a person holding a part-time adult supplementary 56.20 technical college license who renders part-time teaching service 56.21 or a customized trainer as defined by the Minnesota state 56.22 colleges and universities system in a technical college if (i) 56.23 the service is incidental to the regular nonteaching occupation 56.24 of the person; and (ii) the applicable technical college 56.25 stipulates annually in advance that the part-time teaching 56.26 service or customized training service will not exceed 300 hours 56.27 in a fiscal year and retains the stipulation in its records; and 56.28 (iii) the part-time teaching service or customized training 56.29 service actually does not exceed 300 hours in a fiscal year; or 56.30 (4) a person exempt from licensure under section 122A.30. 56.31 Sec. 2. Minnesota Statutes 2000, section 354A.011, 56.32 subdivision 27, is amended to read: 56.33 Subd. 27. [TEACHER.] (a) "Teacher" means any person who 56.34 renders serviceinfor a public school district, other than a 56.35 charter school, located in the corporate limits of one of the 56.36 cities of the first class which was so classified on January 1, 57.1 1979, as any of the following: 57.2(a)(1) a full-time employee in a position for which a 57.3 valid license from the state department of children, families, 57.4 and learning is required; 57.5(b)(2) an employee of the teachers retirement fund 57.6 association located in the city of the first class unless the 57.7 employee has exercised the option pursuant to Laws 1955, chapter 57.8 10, section 1, to retain membership in the Minneapolis employees 57.9 retirement fund established pursuant to chapter 422A; 57.10(c)(3) a part-time employee in a position for which a 57.11 valid license from the state department of children, families, 57.12 and learning is required; or 57.13(d)(4) a part-time employee in a position for which a 57.14 valid license from the state department of children, families, 57.15 and learning is required who also renders other nonteaching 57.16 services for the school district, unless the board of trustees 57.17 of the teachers retirement fund association determines that the 57.18 combined employment is on the whole so substantially dissimilar 57.19 to teaching service that the serviceshallmay not be covered by 57.20 the association. 57.21 (b) The termshalldoes not mean any person who renders 57.22 service in the school district as any of the following: 57.23 (1) an independent contractor or the employee of an 57.24 independent contractor; 57.25 (2) an employee who is a full-time teacher covered by the 57.26 teachers retirement association or by another teachers 57.27 retirement fund association established pursuant to this chapter 57.28 or chapter 354; 57.29 (3) an employee exempt from licensure pursuant to section 57.30 122A.30; 57.31 (4) an employee who is a teacher in a technical college 57.32 located in a city of the first class unless the person elects 57.33 coverage by the applicable first class city teacher retirement 57.34 fund association under section 354B.21, subdivision 2;or57.35 (5) a teacher employed by a charter school, irrespective of 57.36 the location of the school; or 58.1 (6) an employee who is a part-time teacher in a technical 58.2 college in a city of the first class and who has elected 58.3 coverage by the applicable first class city teacher retirement 58.4 fund association under section 354B.21, subdivision 2, but (i) 58.5 the teaching service is incidental to the regular nonteaching 58.6 occupation of the person; (ii) the applicable technical college 58.7 stipulates annually in advance that the part-time teaching 58.8 service will not exceed 300 hours in a fiscal year; and (iii) 58.9 the part-time teaching actually does not exceed 300 hours in the 58.10 fiscal year to which the certification applies. 58.11 Sec. 3. [STATE PAYMENT OF CERTAIN UNPAID CHARTER SCHOOL 58.12 RETIREMENT CONTRIBUTIONS.] 58.13 Subdivision 1. [UNPAID CONTRIBUTIONS.] (a) The state of 58.14 Minnesota shall make any unpaid employee, employer, and employer 58.15 additional contributions to the applicable retirement 58.16 association for teaching or other service in a designated 58.17 charter school which closed before April 1, 2002, without having 58.18 paid the required contributions to the retirement association. 58.19 (b) By June 1, 2002, the chief administrative officer of 58.20 the retirement association shall certify to the commissioner of 58.21 children, families, and learning the amount of accrued 58.22 contributions, plus applicable interest, which were not paid by 58.23 each designated charter school before its closure. On July 1, 58.24 2002, the commissioner of children, families, and learning shall 58.25 pay the amounts certified from the state total building lease 58.26 aid otherwise payable under Minnesota Statutes, section 124D.11, 58.27 subdivision 4a, to the affected retirement associations. The 58.28 forecasted amount of charter school lease aid must not be 58.29 adjusted to reflect the amount remitted under this section; 58.30 rather, charter school lease aid must be prorated by the amount 58.31 remitted. The commissioner shall remit directly to the 58.32 retirement association the amounts certified under this 58.33 section. The applicable retirement association shall credit 58.34 employee contribution payments to the applicable member accounts 58.35 and shall credit to the applicable members allowable and formula 58.36 service and covered salary for the period when the teaching or 59.1 other service was actually performed in the charter school. 59.2 State payments representing unpaid employee contributions must 59.3 be considered accumulated employee or member deductions for 59.4 purposes of Minnesota Statutes, section 353.34; 354.49; or 59.5 354A.37. 59.6 Subd. 2. [COVERED RETIREMENT ASSOCIATIONS.] This section 59.7 applies to the following public retirement associations 59.8 providing retirement coverage for employees in charter schools: 59.9 (1) the teachers retirement association; 59.10 (2) the Minneapolis teachers retirement fund association; 59.11 (3) the St. Paul teachers retirement fund association; 59.12 (4) the Duluth teachers retirement fund association; and 59.13 (5) the public employees retirement association. 59.14 Subd. 3. [DESIGNATED CLOSED CHARTER SCHOOLS.] This section 59.15 applies to the Frederick Douglass charter school and any other 59.16 charter school that is determined by the commissioner of 59.17 children, families, and learning to have closed before April 1, 59.18 2002. 59.19 Sec. 4. [CONTINUING RECOVERY AUTHORITY.] 59.20 Nothing in section 3 relieves the sponsor of a closed 59.21 charter school and the operator of a closed charter school from 59.22 any financial responsibility that those parties may have to pay 59.23 unpaid employee, employer, or employer additional contributions 59.24 to the applicable public retirement plans. The commissioner of 59.25 revenue shall undertake all reasonable efforts to recover these 59.26 amounts. Any recovered amounts must be deposited in the general 59.27 fund and are appropriated to the department of children, 59.28 families, and learning to offset the payment of unpaid 59.29 contributions under section 3. 59.30 Sec. 5. [EFFECTIVE DATE.] 59.31 (a) Sections 1 and 2 are effective on July 1, 2002. 59.32 (b) Sections 3 and 4 are effective on the day following 59.33 final enactment. 59.34 ARTICLE 7 59.35 TEACHER RETIREMENT PLANS 59.36 SERVICE CREDIT PURCHASE 60.1 DEADLINE EXTENSION 60.2 Section 1. Laws 1999, chapter 222, article 16, section 16, 60.3 is amended to read: 60.4 Sec. 16. [REPEALER.] 60.5 Sections 1 to 13 are repealed on May 16,20022003. 60.6 Sec. 2. Laws 2000, chapter 461, article 12, section 20, is 60.7 amended to read: 60.8 Sec. 20. [EFFECTIVE DATE.] 60.9 (a) Sections 4, 5, and 11 to 20 are effective on the day 60.10 following final enactment. 60.11 (b) Sections 1, 2, 3, and 6 to 10 are effective on the day 60.12 following final enactment and apply retroactively to a faculty 60.13 member of the Lake Superior College who was granted an extended 60.14 leave of absence under article 19, section 4, of the united 60.15 technical college educators master agreement for the 1999-2000 60.16 academic year prior to March 20, 2000. 60.17 (c) Sections 5, 11, and 14, paragraph (c), expire on May 60.18 16,20022003. 60.19 Sec. 3. Laws 2001, First Special Session chapter 10, 60.20 article 6, section 21, is amended to read: 60.21 Sec. 21. [EXPIRATION DATE.] 60.22 (a) The amendments in sections 1, 2, 3, 4, 10, 12, 16, 17, 60.23 18, 19, and 20 expire May 16, 2003. 60.24 (b) Sections 9 and 15 expire May 16,20022003. 60.25 Sec. 4. [EFFECTIVE DATE.] 60.26 Sections 1 to 3 are effective on the day following final 60.27 enactment. 60.28 ARTICLE 8 60.29 RECODIFICATION OF SOCIAL 60.30 SECURITY COVERAGE PROVISIONS 60.31 Section 1. Minnesota Statutes 2000, section 355.01, 60.32 subdivision 1, is amended to read: 60.33 Subdivision 1. [IN GENERAL.] For the purposes of this 60.34 chapter,as amended,each of the terms defined in this section 60.35havehas themeaningsmeaning ascribed to them herein. 60.36 Sec. 2. Minnesota Statutes 2000, section 355.01, is 61.1 amended by adding a subdivision to read: 61.2 Subd. 2a. [CONSTITUTIONAL OFFICER.] "Constitutional 61.3 officer" means a person who serves as the governor, lieutenant 61.4 governor, attorney general, secretary of state, state auditor, 61.5 or state treasurer, who is duly elected and who was sworn into 61.6 office. 61.7 Sec. 3. Minnesota Statutes 2000, section 355.01, is 61.8 amended by adding a subdivision to read: 61.9 Subd. 2b. [DULUTH TEACHER.] "Duluth teacher" means a 61.10 person employed by independent school district No. 709, Duluth, 61.11 who holds a position covered by the Duluth teachers retirement 61.12 fund association established under chapter 354A. 61.13 Sec. 4. Minnesota Statutes 2000, section 355.01, is 61.14 amended by adding a subdivision to read: 61.15 Subd. 2c. [EDUCATIONAL EMPLOYEE.] "Educational employee" 61.16 means an employee of the state of Minnesota or of a public 61.17 subdivision of the state who performs services in a position 61.18 covered by the teachers retirement association under chapter 354. 61.19 Sec. 5. Minnesota Statutes 2000, section 355.01, is 61.20 amended by adding a subdivision to read: 61.21 Subd. 2d. [EMPLOYEE.] "Employee" means a person employed 61.22 by the state of Minnesota or by a political subdivision of the 61.23 state and includes an officer of the state of Minnesota or of a 61.24 political subdivision of the state. 61.25 Sec. 6. Minnesota Statutes 2000, section 355.01, is 61.26 amended by adding a subdivision to read: 61.27 Subd. 2e. [EMPLOYEE TAX.] "Employee tax" means the tax 61.28 imposed by section 3101 of the Internal Revenue Code of 1986. 61.29 Sec. 7. Minnesota Statutes 2000, section 355.01, 61.30 subdivision 3, is amended to read: 61.31 Subd. 3. [EMPLOYMENT.]The term(a) "Employment" means any 61.32 service performed by an employee in the employ of the state, or 61.33 any political subdivision thereof, forsuchthat employer, 61.34 except: 61.35 (1) service which in the absence of an agreement entered 61.36 into under this chapter, as amended, would constitute 62.1 "employment" as defined in the Social Security act; or 62.2 (2) service which under the Social Security Actmayis not 62.3 permitted to be included in an agreement between the state and 62.4 the federal Secretary of Health, Education,andWelfareHuman 62.5 Services entered into under this chapter, as amended. 62.6 (b) Service which under the Social Security Actmayis 62.7 permitted to be included in an agreement only upon certification 62.8 by the governor in accordance with section 218(d) (3) of that 62.9 actshallmust be included in the term "employment" if and when 62.10 the governor issues, with respect tosuchthat service,athe 62.11 appropriate federal certificate to the federal Secretary of 62.12 Health, Education,andWelfareHuman Services. 62.13 Sec. 8. Minnesota Statutes 2000, section 355.01, is 62.14 amended by adding a subdivision to read: 62.15 Subd. 3a. [FEDERAL INSURANCE CONTRIBUTIONS ACT.] "Federal 62.16 Insurance Contributions Act" means subchapters A and B of 62.17 chapter 21 of the Internal Revenue Code of 1986, as amended 62.18 through December 31, 2000. 62.19 Sec. 9. Minnesota Statutes 2000, section 355.01, is 62.20 amended by adding a subdivision to read: 62.21 Subd. 3b. [GOVERNMENTAL EMPLOYER.] "Governmental employer" 62.22 means any political subdivision as defined in section 218 of the 62.23 Social Security Act. The term includes a city, county, town, 62.24 hospital district, or other body, politic and corporate, located 62.25 in Minnesota. 62.26 Sec. 10. Minnesota Statutes 2000, section 355.01, is 62.27 amended by adding a subdivision to read: 62.28 Subd. 3c. [HIGHER EDUCATION EMPLOYEE.] "Higher education 62.29 employee" means an employee of the state of Minnesota who 62.30 performs services in a Minnesota state colleges and universities 62.31 system in a position covered by the individual retirement 62.32 account plan under section 354B.21 and who remains a member of 62.33 the teachers retirement association for purposes of social 62.34 security coverage only. 62.35 Sec. 11. Minnesota Statutes 2000, section 355.01, is 62.36 amended by adding a subdivision to read: 63.1 Subd. 3d. [HOSPITAL EMPLOYEE.] "Hospital employee" means 63.2 an officer or employee of a public hospital who performs 63.3 services in a position covered by the public employees 63.4 retirement association under chapter 353. 63.5 Sec. 12. Minnesota Statutes 2000, section 355.01, is 63.6 amended by adding a subdivision to read: 63.7 Subd. 3e. [JUDGE.] "Judge" means a judge as defined in 63.8 section 490.121, subdivision 3. 63.9 Sec. 13. Minnesota Statutes 2000, section 355.01, is 63.10 amended by adding a subdivision to read: 63.11 Subd. 3f. [LEGISLATOR.] "Legislator" means a member of the 63.12 legislature who is duly elected and who was sworn into office. 63.13 Sec. 14. Minnesota Statutes 2000, section 355.01, is 63.14 amended by adding a subdivision to read: 63.15 Subd. 3g. [LOCAL GOVERNMENTAL SUBDIVISION.] "Local 63.16 governmental subdivision" means: 63.17 (1) a political subdivision as defined in section 218(b) of 63.18 the Social Security Act; 63.19 (2) an instrumentality of the state; 63.20 (3) an instrumentality of one or more of the political 63.21 subdivisions of the state, including the league of Minnesota 63.22 cities; 63.23 (4) an instrumentality of the state and one or more of its 63.24 political subdivisions; 63.25 (5) a governmental subdivision as defined in section 63.26 353.01, subdivision 6; and 63.27 (6) any instrumentality established under a joint powers 63.28 agreement under section 471.59 wherein the instrumentality is 63.29 responsible for the employment and the payment of the salaries 63.30 of the employees of the instrumentality. 63.31 Sec. 15. Minnesota Statutes 2000, section 355.01, is 63.32 amended by adding a subdivision to read: 63.33 Subd. 3h. [MINNEAPOLIS TEACHER.] "Minneapolis teacher" 63.34 means a person employed by special school district No. 1, 63.35 Minneapolis, who holds a position covered by the Minneapolis 63.36 teachers retirement fund association established under chapter 64.1 354A. 64.2 Sec. 16. Minnesota Statutes 2000, section 355.01, is 64.3 amended by adding a subdivision to read: 64.4 Subd. 3i. [POLITICAL SUBDIVISION.] "Political subdivision" 64.5 means any political subdivision as defined in section 218(b) of 64.6 the Social Security Act, and includes any instrumentality of the 64.7 state, any instrumentality of one or more of its political 64.8 subdivisions, including the league of Minnesota municipalities, 64.9 any instrumentality of the state and one or more of its 64.10 political subdivisions, and an instrumentality established under 64.11 a joint powers agreement under section 471.59, wherein the 64.12 instrumentality is responsible for the employment and payment of 64.13 the salaries of employees of the instrumentality. 64.14 Sec. 17. Minnesota Statutes 2000, section 355.01, is 64.15 amended by adding a subdivision to read: 64.16 Subd. 3j. [PUBLIC EMPLOYEE.] "Public employee" means an 64.17 officer or an employee of a local governmental subdivision of 64.18 the state who performs services in a position covered by the 64.19 public employees retirement association established under 64.20 chapter 353. 64.21 Sec. 18. Minnesota Statutes 2000, section 355.01, is 64.22 amended by adding a subdivision to read: 64.23 Subd. 3k. [PUBLIC HOSPITAL.] "Public hospital" means a 64.24 hospital that is owned or operated by a governmental employer or 64.25 a combination of governmental employers, or a hospital that is 64.26 an integral part of a governmental employer or of a combination 64.27 of governmental employers. 64.28 Sec. 19. Minnesota Statutes 2000, section 355.01, is 64.29 amended by adding a subdivision to read: 64.30 Subd. 3l. [ST. PAUL TEACHER.] "St. Paul teacher" means a 64.31 person employed by independent school district No. 625, St. 64.32 Paul, who holds a position covered by the St. Paul teachers 64.33 retirement fund association established under chapter 354A. 64.34 Sec. 20. Minnesota Statutes 2000, section 355.01, 64.35 subdivision 6, is amended to read: 64.36 Subd. 6. [SECRETARY OF HEALTH AND HUMAN SERVICES.]The65.1term"Secretary of Health, Education,andWelfareHuman Services" 65.2 means the secretary of the federal Department of Health and 65.3 Human Services and includes any individual to whom the Secretary 65.4 of Health, Education,andWelfareHuman Services has delegated 65.5anyfunctions under the Social Security Act with respect to 65.6 coverageunder such actof employees of states and their 65.7 political subdivisions. 65.8 Sec. 21. Minnesota Statutes 2000, section 355.01, 65.9 subdivision 8, is amended to read: 65.10 Subd. 8. [SOCIAL SECURITY ACT.]The term"Social Security 65.11 Act" means the Act of Congress approved August 14, 1935, chapter 65.12 531, Statutes at Large, volume 49, page 620, officially cited as 65.13 the "Social Security Act," assuch act has been and may from65.14time to time beamended (including the relevant regulations and 65.15 requirementsissued pursuant thereto). 65.16 Sec. 22. Minnesota Statutes 2000, section 355.01, is 65.17 amended by adding a subdivision to read: 65.18 Subd. 11. [SPECIAL AUTHORITY OR DISTRICT.] "Special 65.19 authority or district" means a municipal housing and 65.20 redevelopment authority organized under sections 469.001 to 65.21 469.047, a soil and water conservation district organized under 65.22 chapter 103C, a port authority organized under sections 469.048 65.23 to 469.068, an economic development authority organized under 65.24 sections 469.090 to 469.108, or a hospital district organized or 65.25 reorganized under sections 447.31 to 447.37. 65.26 Sec. 23. Minnesota Statutes 2000, section 355.01, is 65.27 amended by adding a subdivision to read: 65.28 Subd. 12. [SPECIAL AUTHORITY OR DISTRICT 65.29 EMPLOYEE.] "Special authority or district employee" means an 65.30 employee, other than an elected official, of a municipal housing 65.31 and redevelopment authority organized under sections 469.001 to 65.32 469.047, of a soil and water conservation district organized 65.33 under chapter 103C, of a port authority organized under sections 65.34 469.048 to 469.068, of an economic development authority 65.35 organized under sections 469.090 to 469.108, or of a hospital 65.36 district organized or reorganized under sections 447.31 to 66.1 447.37. 66.2 Sec. 24. Minnesota Statutes 2000, section 355.01, is 66.3 amended by adding a subdivision to read: 66.4 Subd. 13. [STATE AGENCY.] "State agency" means the 66.5 commissioner of employee relations. 66.6 Sec. 25. Minnesota Statutes 2000, section 355.01, is 66.7 amended by adding a subdivision to read: 66.8 Subd. 14. [STATE EMPLOYEE.] "State employee" means an 66.9 employee of the state of Minnesota or of a political subdivision 66.10 who performs services in a position covered by the general state 66.11 employees retirement plan of the Minnesota state retirement 66.12 system governed by chapter 352, except any position for which 66.13 the compensation is on a fee basis. 66.14 Sec. 26. Minnesota Statutes 2000, section 355.01, is 66.15 amended by adding a subdivision to read: 66.16 Subd. 15. [WAGES.] "Wages" means all remuneration for 66.17 employment, including the cash value of all remuneration paid in 66.18 any medium other than cash. The term does not include that part 66.19 of the remuneration which, even if it were for employment within 66.20 the meaning of the Federal Insurance Contributions Act, would 66.21 not constitute wages within the meaning of that act. 66.22 Sec. 27. Minnesota Statutes 2000, section 355.02, is 66.23 amended to read: 66.24 355.02 [AGREEMENTS.] 66.25 Subdivision 1. [GENERAL AUTHORITY.] (a) The state agency, 66.26 with the approval of the governor, is hereby authorized to enter 66.27 into an agreement on behalf of the state with the federal 66.28 Secretary of Health, Education,andWelfareHuman Services, 66.29 consistent with the terms and provisions of this chapter, as66.30amended, for the purpose of extending the benefits of the 66.31 federal old ageand, survivors, and disability insurance system 66.32 to employees of the state or any political subdivision thereof 66.33 with respect to services specified insuchthe agreement which 66.34 constitute "employment," whenever so specifically authorized by 66.35 the statutory provisions of this state pertaining to any 66.36 coverage group of such employees to which the agreement may 67.1 become applicable under the Social Security Act. 67.2Pursuant to such(b) Under this specific authorization the 67.3 agreement may containsuchthose provisions relating to 67.4 coverage, benefits, contributions, effective date, modification 67.5 and termination of the agreement, administration, and other 67.6 appropriate provisions as the state agency and the federal 67.7 Secretary of Health, Education,andWelfareHuman Services shall 67.8 agree upon, but, except as may be otherwise required by or under 67.9 the Social Security Act as to the services to be covered, such 67.10 agreementshallmust provide in effect that: 67.11 (1) benefits will be provided for employees whose services 67.12 are covered by the agreement (and their dependents and 67.13 survivors) on the same basis as thoughsuchthose services 67.14 constituted employment within the meaning of title II of the 67.15 Social Security Act; 67.16 (2) the state or other employer will pay to the federal 67.17 Secretary of the Treasury, at such time or times as may be 67.18 prescribed under the Social Security Act, contributions with 67.19 respect to wages, equal to the sum of the taxes which would be 67.20 imposed by the Federal Insurance Contributions Act if the 67.21 services covered by the agreement constituted employment within 67.22 the meaning of that act; 67.23 (3)Suchthe agreementshall beis effective with respect 67.24 to services in employment covered by the agreement performed 67.25 after a date specified thereinbut in no event may it be67.26effective with respect to any such services performed prior to67.27the first day of the calendar year in which such agreement is67.28entered into or in which the modification of the agreement67.29making it applicable to such services, is entered into except67.30that an agreement or modification entered into prior to January67.311, 1960, may be effective with respect to services performed67.32after December 31, 1955, or after a later date specified in such67.33agreement or modification; and 67.34 (4) all services which constitute employment and are 67.35 performed in the employ of the state or any of its political 67.36 subdivisions by employees thereof, may be covered bysuchthe 68.1 agreement whenever so specifically authorized by the statutory 68.2 provisions of this state pertaining to any coverage group of 68.3 such employees to which the agreement may become applicable 68.4 under the Social Security Act. 68.5 Subd. 2. [INTERSTATE INSTRUMENTALITY.] (a) Any 68.6 instrumentality jointly created by this state and any other 68.7 state or states isherebyauthorized, upon the granting of like 68.8 authority bysuchthe other state or states, to: 68.9 (1)toenter into an agreement with the federal Secretary 68.10 of Health, Education,andWelfareHuman Services whereby the 68.11 benefits of the federal old ageand, survivors, and disability 68.12 insurance systemshall beare extended to employees ofsuchthe 68.13 instrumentality,; 68.14 (2)torequire its employees to pay (and for that purpose 68.15 to deduct from their wages) contributions equal to the amounts 68.16 which they would be required to pay under section 355.03, 68.17 subdivision 1, if they were covered by an agreement made 68.18pursuant tounder subdivision 1,; and 68.19 (3)tomake payments to the federal Secretary of the 68.20 Treasury in accordance withsuchthat agreement, including 68.21 payments from its own funds, and otherwise to comply withsuch68.22 those agreements.Such68.23 (b) The agreementsshallmust, to the extent practicable, 68.24 be consistent with the terms and provisions of subdivision 1 and 68.25 other provisions of this chapter, as amended. 68.26 Subd. 3. [GROUPS COVERED BY SOCIAL SECURITY.] The 68.27 following groups must be covered by an agreement or a 68.28 modification to an agreement between the state agency and the 68.29 federal Secretary of Health and Human Services: 68.30 (1) constitutional officers; 68.31 (2) Duluth teachers; 68.32 (3) educational employees; 68.33 (4) higher education employees; 68.34 (5) hospital employees; 68.35 (6) judges; 68.36 (7) legislators; 69.1 (8) Minneapolis teachers; 69.2 (9) public employees; 69.3 (10) St. Paul teachers; 69.4 (11) special authority or district employees; and 69.5 (12) state employees. 69.6 Sec. 28. Minnesota Statutes 2000, section 355.03, is 69.7 amended to read: 69.8 355.03 [EMPLOYEES AND EMPLOYERS, CONTRIBUTIONS.] 69.9 Subdivision 1. [EMPLOYEE CONTRIBUTION AMOUNT.] Every 69.10 employee of the state, or of any of its political subdivisions, 69.11 whose services are covered by the agreement entered into under 69.12 section 355.02shall be required tomust pay for the period 69.13 ofsuchthe coverage,into the contribution fund established by69.14section 355.04,contributions,with respect to wages, equal to 69.15 the amount of the employee's tax which would be imposed by the 69.16 Federal Insurance Contributions Act ifsuchthose services 69.17 constituted employment within the meaning of that act. 69.18SuchThis liabilityshall arisearises in consideration of the 69.19 employee's retention in the service of the state, or any of its 69.20 political subdivisions, or the employee's entry uponsuchthat 69.21 service, after the enactment of this chapter, as amended. 69.22 Subd. 2. [EMPLOYEE DEDUCTION.] The contribution imposed by 69.23 this sectionshallmust be collected by the covered employee's 69.24 employer by deducting the amount of the contribution from wages 69.25 as and when paid, but. The failure to make such deductionshall69.26 does not relieve the employee from liability for such 69.27 contribution. 69.28 Subd. 2a. [EMPLOYER CONTRIBUTION.] (a) Employer 69.29 contributions that are required under the agreement must be paid 69.30 by the applicable employing unit. 69.31 (b) Employer contributions on behalf of St. Paul teachers, 69.32 Duluth teachers, Minneapolis teachers, or education employees 69.33 may be paid from normal school operating funds. Employer 69.34 contributions on behalf of state employees must be paid by the 69.35 applicable department or agency from its appropriation or other 69.36 revenue, in the same proportion as salaries are paid, and must 70.1 be charged as an administrative cost of the state governmental 70.2 unit. 70.3 (c) Employing units may pay the employer contribution from 70.4 taxes collected or from other governmental revenue. An 70.5 employing unit may include in its tax levy the amount necessary 70.6 to pay its social security obligations. If the taxes authorized 70.7 to be levied cause the total levy amount to exceed any 70.8 limitation on the power of the employing unit to levy taxes, the 70.9 unit may still levy the necessary amount. The employing unit, 70.10 in the event of a deficit, may issue debt obligations, payable 70.11 in not more than two years, in an amount which may cause its 70.12 indebtedness to exceed any limitation without holding an 70.13 election and may levy taxes to amortize the indebtedness. The 70.14 authorized social security expenditures must not be included in 70.15 computing the cost of government for purposes of any home rule 70.16 charter or other charter. 70.17 (d) If the required employer contribution for social 70.18 security is increased and, as a result of that increase, there 70.19 is insufficient money available to a state governmental unit, 70.20 there is appropriated to the state department or agency from the 70.21 general fund the amount required to meet the deficiency, based 70.22 on certifications from the commissioner of employee relations to 70.23 the commissioner of finance. The transfer of the appropriated 70.24 amount may only occur after the commissioner of finance notifies 70.25 the chair and ranking minority member of the house committee on 70.26 ways and means and the chair and ranking minority member of the 70.27 senate finance committee of the amount to be transferred. 70.28 (e) For members of the general state employees retirement 70.29 plan of the Minnesota state retirement system who are employed 70.30 by the state horticultural society, the department of Minnesota 70.31 for the disabled American veterans organization, the department 70.32 of Minnesota of the veterans of foreign wars organization, the 70.33 Minnesota crop improvement association, the Minnesota historical 70.34 society, the armory building commission, and the 70.35 Minnesota-Wisconsin-Minneapolis-St. Paul survival plan project, 70.36 the applicable employing unit must pay the employer contribution 71.1 from any revenue source that it has. 71.2 Subd. 3. [ADJUSTMENTS; REFUNDS.] If more or less than the 71.3 correct amount of the contribution imposed by this section is 71.4 paid or deducted with respect to any remuneration, proper 71.5 adjustments, or refund if adjustment is impracticable,shall71.6 must be made, without interest, in such manner and at such times 71.7 as the state agencyshall prescribeprescribes. 71.8 Subd. 4. [DELINQUENT PAYMENTS.] Delinquent payments that 71.9 are due under this chapter, with compound interest at the rate 71.10 of six percent per annum, may be recovered by legal action in a 71.11 court of competent jurisdiction against an employing unit that 71.12 is liable for the amount. The state agency may request that the 71.13 delinquent payment and interest amount be deducted from any 71.14 other money that is payable to the applicable employing unit by 71.15 any department or agency of the state. An action for the 71.16 recovery of delinquent payments is not subject to any statutory 71.17 provision that would otherwise limit the time within which an 71.18 action may be commenced. 71.19 Sec. 29. [355.035] [REIMBURSEMENT BY EMPLOYING UNITS.] 71.20 An employing unit which employs a member of a covered group 71.21 must reimburse the state agency for its pro rata share of the 71.22 cost of the administration of the agency with respect to social 71.23 security coverage in accordance with the rules of the state 71.24 agency pertaining to this reimbursement. 71.25 Sec. 30. [355.036] [REPORTS.] 71.26 An employing unit which employs a member of a covered group 71.27 must make any reports in the form required and must include the 71.28 information that the state agency requires. An employing unit 71.29 also must comply with the reporting requirements that the state 71.30 agency or the federal Secretary of Health and Human Services may 71.31 from time to time determine are necessary to ensure the 71.32 correctness and verification of relevant information. 71.33 Sec. 31. [355.037] [PROCEEDS OF SPECIAL BENEFIT TAXES.] 71.34 The proceeds of the special benefit taxes that are 71.35 authorized to be levied for redevelopment purposes under section 71.36 469.033, subdivision 6, may be used to defray all or part of the 72.1 costs incurred by any housing and redevelopment authority under 72.2 this chapter. 72.3 Sec. 32. Minnesota Statutes 2000, section 355.05, is 72.4 amended to read: 72.5 355.05 [RULES.] 72.6 The state agencyshall make and publish suchmay promulgate 72.7 those rules, not inconsistent with the provisions of this 72.8 chapter, as amended, as it finds necessary or appropriate to the 72.9 efficient administration of the functions with which it is 72.10 charged under this chapter, as amended. 72.11 Sec. 33. Minnesota Statutes 2000, section 355.07, is 72.12 amended to read: 72.13 355.07 [DECLARATION OF POLICY.] 72.14 (a) In order to extend to employees of the stateand, its 72.15 political subdivisions, and its other governmental employers, 72.16 and to the dependents and survivors ofsuchthe employees of 72.17 those employing units, the basic protection accorded to others 72.18 by the old ageand, survivors, and disability insurance system 72.19 embodied in the Social Security Act, it is hereby declared to be 72.20 the policy of the legislature, subject to the limitations of 72.21 this chapter, that these steps are taken to provide protection 72.22 to employees of the state and its political subdivisions on as 72.23 broad a basis as may be authorized by the legislature and is 72.24 permitted under the Social Security Act. 72.25 (b) It is also the policy of the legislature that the 72.26 protection afforded employees in positions covered by a 72.27 retirement system on the date an agreement under this chapter is 72.28 made applicable to service performed in those positions, or 72.29 receiving periodic benefits under the retirement system at that 72.30 time, will not be impaired as a result of making the agreement 72.31 so applicable or as a result of legislative enactment in 72.32 anticipation thereof when combined with the benefits accorded 72.33 the employee by the Social Security Act. 72.34 (c) To this end, the agreement referred to in section 72.35 355.02shallmust not be made applicable to any service 72.36 performed in any position covered by a retirement system unless 73.1 a referendum is first held by secret ballot in which a majority 73.2 of "eligible employees," as defined in section 218(d) (3) of the 73.3 Social Security Act, vote in favor thereof, or unless a 73.4 retirement system is divided in two divisions or parts, one of 73.5 which is composed of positions of members of the system who 73.6 desire coverage and one of which is composed of positions of 73.7 members of the system who do not desire coverage under section 73.8 218(d) (3) of the Social Security Act, in accordance with 73.9 subsections (6) and (7) thereof. 73.10 (d) Nothing in any provision of this chaptershall73.11authorizeauthorizes the extension of the insurance system 73.12 established by this chapter, as amended, to service in any 73.13 police officer's or firefighter's position or in any position 73.14 covered by a retirement system applicable exclusively to 73.15 positions in one or more law enforcement or fire fighting units, 73.16 agencies or departments. 73.17 Sec. 34. Minnesota Statutes 2000, section 355.08, is 73.18 amended to read: 73.19 355.08 [APPLICATION OF SOCIAL SECURITY ACT.] 73.20 The provisions of the Social Security Act, and all acts73.21amendatory thereof, shallgovern relative to employees of the 73.22 stateand, its political subdivisions, and its other 73.23 governmental employers subject toMinnesota Statutes,this 73.24 chapter355, as amended, anything insaidthis chapter to the 73.25 contrary notwithstanding. 73.26 Sec. 35. [355.091] [DIVISION OF RETIREMENT PLANS.] 73.27 (a) The public retirement plans enumerated in paragraph (b) 73.28 must be divided into two parts in accordance with section 73.29 218(d)(6)(c) of the Social Security Act, with one part composed 73.30 of plan members who did not elect social security coverage in 73.31 the applicable referendum and the other part composed of plan 73.32 members who did elect social security coverage in the applicable 73.33 referendum. 73.34 (b) The applicable public retirement plans are: 73.35 (1) the elective state officers retirement plan; 73.36 (2) the judges retirement plan; 74.1 (3) the legislators retirement plan; 74.2 (4) the Minneapolis teachers retirement fund association; 74.3 (5) the general employees retirement plan of the public 74.4 employees retirement association; 74.5 (6) the St. Paul teachers retirement fund association; and 74.6 (7) the teachers retirement association. 74.7 (c) Plan participants and persons electing participation 74.8 under section 354B.21 remain members of the teachers retirement 74.9 association for purposes of social security coverage only, and 74.10 remain covered by the applicable agreement entered into under 74.11 section 355.01, but are not members of the teachers retirement 74.12 association for any other purpose while employed in covered 74.13 employment. 74.14 Sec. 36. [REPEALER.] 74.15 Minnesota Statutes 2000, sections 355.01, subdivisions 2, 74.16 4, 5, 9, and 10; 355.11; 355.12; 355.13; 355.14; 355.15; 355.16; 74.17 355.17; 355.201; 355.202; 355.203; 355.204; 355.205; 355.206; 74.18 355.207; 355.208; 355.209; 355.21; 355.22; 355.23; 355.24; 74.19 355.25; 355.26; 355.27; 355.28; 355.281; 355.282; 355.283; 74.20 355.284; 355.285; 355.286; 355.287; 355.288; 355.29; 355.291; 74.21 355.292; 355.293; 355.294; 355.295; 355.296; 355.297; 355.298; 74.22 355.299; 355.30; 355.311; 355.391; 355.392; 355.393; 355.41; 74.23 355.42; 355.43; 355.44; 355.45; 355.46; 355.48; 355.49; 355.50; 74.24 355.51; 355.52; 355.54; 355.55; 355.56; 355.57; 355.58; 355.59; 74.25 355.60; 355.61; 355.621; 355.622; 355.623; 355.624; 355.625; 74.26 355.626; 355.627; 355.628; 355.71; 355.72; 355.73; 355.74; 74.27 355.75; 355.76; 355.77; 355.78; 355.79; 355.80; 355.81; and 74.28 355.90, are repealed. 74.29 Sec. 37. [EFFECTIVE DATE.] 74.30 Sections 1 to 36 are effective on July 1, 2002. 74.31 ARTICLE 9 74.32 PUBLIC PENSION PLAN 74.33 ACTUARIAL ASSUMPTION REVISIONS 74.34 Section 1. Minnesota Statutes 2000, section 356.215, 74.35 subdivision 4d, is amended to read: 74.36 Subd. 4d. [INTEREST AND SALARY ASSUMPTIONS.] (a) The 75.1 actuarial valuation must use the applicable following 75.2 preretirement interest assumption and the applicable following 75.3 postretirement interest assumption: 75.4 preretirement postretirement 75.5 interest rate interest rate 75.6 plan assumption assumption 75.7 general state employees 75.8 retirement plan 8.5% 6.0% 75.9 correctional state employees 75.10 retirement plan 8.5 6.0 75.11 state patrol retirement plan 8.5 6.0 75.12 legislators retirement plan 8.5 6.0 75.13 elective state officers 75.14 retirement plan 8.5 6.0 75.15 judges retirement plan 8.5 6.0 75.16 general public employees 75.17 retirement plan 8.5 6.0 75.18 public employees police and fire 75.19 retirement plan 8.5 6.0 75.20 local government correctional 75.21 service retirement plan 8.5 6.0 75.22 teachers retirement plan 8.5 6.0 75.23 Minneapolis employees 75.24 retirement plan 6.0 5.0 75.25 Duluth teachers retirement plan 8.5 8.5 75.26 Minneapolis teachers retirement 75.27 plan 8.5 8.5 75.28 St. Paul teachers retirement 75.29 plan 8.5 8.5 75.30 Minneapolis police relief 75.31 association 6.0 6.0 75.32other localFairmont police relief 75.33associationsassociation 5.0 5.0 75.34 Minneapolis fire department 75.35 relief association 6.0 6.0 75.36other local salaried firefighters75.37 Virginia fire department 75.38 reliefassociationsassociation 5.0 5.0 75.39 local monthly benefit volunteer 75.40 firefighters relief associations 5.0 5.0 75.41 (b) The actuarial valuation must use the applicable 75.42 following single rate future salary increase assumption or the 75.43 applicable following graded rate future salary increase 75.44 assumption: 75.45 (1) single rate future salary increase assumption 75.46 future salary 75.47 plan increase assumption 75.48 legislators retirement plan 5.0% 75.49 elective state officers retirement 75.50 plan 5.0 75.51 judges retirement plan 5.0 75.52 Minneapolis police relief association 4.0 75.53other localFairmont police relief 75.54associationsassociation 3.5 75.55 Minneapolis fire department relief 75.56 association 4.0 75.57other local salaried firefighters75.58 Virginia fire department 75.59 reliefassociationsassociation 3.5 75.60 (2) modified single rate future salary increase assumption 76.1 future salary 76.2 plan increase assumption 76.3 Minneapolis employees the prior calendar year 76.4 retirement plan amount increased first by 76.5 1.0198 percent to prior 76.6 fiscal year date and 76.7 then increased by 4.0 76.8 percent annually for 76.9 each future year 76.10 (3) select and ultimate future salary increase assumption 76.11 or graded rate future salary increase assumption 76.12 future salary 76.13 plan increase assumption 76.14 general state employees select calculation and 76.15 retirement plan assumption A 76.16 correctional state employees 76.17 retirement plan assumption H 76.18 state patrol retirement plan assumption H 76.19 general public employees select calculation and 76.20 retirement plan assumption B 76.21 public employees police and fire 76.22 fund retirement plan assumption C 76.23 local government correctional service 76.24 retirement plan assumption H 76.25 teachers retirement plan assumption D 76.26 Duluth teachers retirement plan assumption E 76.27 Minneapolis teachers retirement plan assumption F 76.28 St. Paul teachers retirement plan assumption G 76.29 76.30 The select calculation:is, 76.31 during the ten-year select period,0.2a designated percent 76.32 is multiplied by the result of ten minus T, where T is 76.33 the number of completed years of service, and is added 76.34 to the applicable future salary increase assumption. The 76.35 designated percent is 0.2 percent for the correctional state 76.36 employees retirement plan, the state patrol retirement 76.37 plan, the public employees police and fire plan, and the 76.38 local government correctional service plan; 0.3 percent 76.39 for the general state employees retirement plan, the 76.40 general public employees retirement plan, the teachers 76.41 retirement plan, the Duluth teachers retirement fund 76.42 association, and the St. Paul teachers retirement fund 76.43 association; and 0.4 percent for the Minneapolis teachers 76.44 retirement fund association. 76.45 76.46 The ultimate future salary increase assumption is: 76.47 76.48 age A B C D E F G H 76.49 16 6.95% 6.95% 11.50% 8.20% 8.00%7.50%7.25% 7.7500 76.50 6.50 6.90 76.51 17 6.90 6.90 11.50 8.15 8.007.507.257.7500 76.52 6.50 6.90 76.53 18 6.85 6.85 11.50 8.10 8.007.507.257.7500 76.54 6.50 6.90 76.55 19 6.80 6.80 11.50 8.05 8.007.507.257.7500 76.56 6.50 6.90 76.57 20 6.756.7511.508.008.007.507.257.7500 76.58 6.40 6.00 6.90 6.50 6.90 76.59 216.706.7011.507.958.007.507.257.1454 76.60 6.75 6.40 6.00 6.90 6.50 6.90 76.61 226.656.6511.007.908.007.507.257.0725 76.62 6.75 6.40 6.00 6.90 6.50 6.90 76.63 23 6.75 6.40 10.50 6.00 6.85 6.50 6.85 7.0544 76.64 246.666.5510.007.807.807.307.207.0363 76.65 6.75 6.40 6.00 6.80 6.50 6.80 76.66 256.506.509.507.757.707.207.157.0000 76.67 6.75 6.40 6.00 6.75 6.50 6.75 76.68 266.456.459.207.707.607.107.107.0000 77.1 6.75 6.36 6.00 6.70 6.50 6.70 77.2 276.406.408.907.657.507.007.057.0000 77.3 6.75 6.32 6.00 6.65 6.50 6.65 77.4 286.356.358.607.607.406.907.007.0000 77.5 6.75 6.28 6.00 6.60 6.50 6.60 77.6 296.306.308.307.557.306.806.957.0000 77.7 6.75 6.24 6.00 6.55 6.50 6.55 77.8 306.256.308.007.507.206.706.907.0000 77.9 6.75 6.20 6.00 6.50 6.50 6.50 77.10 316.206.257.807.457.106.606.857.0000 77.11 6.75 6.16 6.00 6.45 6.50 6.45 77.12 326.156.217.607.407.006.506.807.0000 77.13 6.75 6.12 6.00 6.40 6.50 6.40 77.14 336.106.177.407.306.906.406.757.0000 77.15 6.75 6.08 6.00 6.35 6.50 6.35 77.16 346.056.097.207.106.806.306.707.0000 77.17 6.75 6.04 6.00 6.30 6.50 6.30 77.18 356.006.057.007.006.706.206.657.0000 77.19 6.75 6.00 6.00 6.25 6.50 6.25 77.20 366.956.016.806.856.606.106.606.9019 77.21 6.75 5.96 6.00 6.20 6.50 6.20 77.22 375.905.976.606.706.506.006.556.8074 77.23 6.75 5.92 6.00 6.15 6.50 6.15 77.24 385.855.936.406.556.405.906.506.7125 77.25 6.75 5.88 5.90 6.10 6.50 6.10 77.26 395.805.896.206.406.305.806.406.6054 77.27 6.75 5.84 5.80 6.05 6.50 6.05 77.28 405.755.856.006.256.205.706.306.5000 77.29 41 5.70 5.81 5.90 6.10 6.10 5.60 6.20 6.3540 77.30 6.75 5.76 5.60 5.90 6.50 5.95 77.31 425.655.775.805.956.005.506.106.2087 77.32 6.75 5.72 5.50 5.80 6.50 5.90 77.33 435.605.735.705.805.905.456.006.0622 77.34 6.65 5.68 5.40 5.70 6.50 5.85 77.35 445.555.695.605.655.805.405.905.9048 77.36 6.55 5.64 5.30 5.60 6.50 5.80 77.37 455.505.655.505.505.705.355.805.7500 77.38 6.45 5.60 5.20 5.50 6.50 5.75 77.39 465.455.625.455.455.605.305.705.6940 77.40 6.35 5.56 5.10 5.40 6.40 5.70 77.41 475.405.595.405.405.505.255.65 5.6375 77.42 6.25 5.52 5.00 5.30 6.30 77.43 485.355.565.355.355.455.205.60 5.5822 77.44 6.15 5.48 5.00 5.20 6.20 77.45 495.305.535.305.305.405.155.55 5.5404 77.46 6.05 5.44 5.00 5.10 6.10 77.47 505.255.505.255.255.355.105.50 5.5000 77.48 5.95 5.40 5.00 5.00 6.00 77.49 515.205.455.255.205.305.055.45 5.4384 77.50 5.85 5.36 5.00 5.00 5.90 77.51 525.155.405.255.155.255.005.40 5.3776 77.52 5.75 5.32 5.00 5.00 5.80 77.53 535.105.355.255.105.255.005.35 5.3167 77.54 5.65 5.28 5.00 5.00 5.70 77.55 545.055.305.255.055.255.005.30 5.2826 77.56 5.55 5.24 5.00 5.00 5.60 77.57 555.005.255.25 5.005.255.005.25 5.2500 77.58 5.45 5.20 5.00 5.50 77.59 565.005.205.25 5.005.255.005.255.2500 77.60 5.35 5.16 5.00 5.40 5.20 77.61 575.005.155.25 5.005.255.005.255.2500 77.62 5.25 5.12 5.00 5.30 5.15 77.63 585.005.105.255.005.255.005.255.2500 77.64 595.005.055.255.005.255.005.255.2500 77.65 5.25 5.04 5.20 5.00 5.10 5.05 77.66 605.005.00 5.255.005.255.005.255.2500 77.67 5.25 5.30 5.00 5.00 77.68 615.005.00 5.255.005.255.005.255.2500 77.69 5.25 5.40 5.00 5.00 77.70 625.005.00 5.255.005.255.005.255.2500 77.71 5.25 5.50 5.00 5.00 78.1 635.005.00 5.255.005.255.005.255.2500 78.2 5.25 5.60 5.00 5.00 78.3 645.005.00 5.255.005.255.005.255.2500 78.4 5.25 5.70 5.00 5.00 78.5 655.005.00 5.255.005.255.005.255.2500 78.6 5.25 5.70 5.00 5.00 78.7 665.005.00 5.255.005.255.005.255.2500 78.8 5.25 5.70 5.00 5.00 78.9 675.005.00 5.255.005.255.005.255.2500 78.10 5.25 5.70 5.00 5.00 78.11 685.005.00 5.255.005.255.005.255.2500 78.12 5.25 5.70 5.00 5.00 78.13 695.005.00 5.255.005.255.005.255.2500 78.14 5.25 5.70 5.00 5.00 78.15 705.005.00 5.255.005.255.005.255.2500 78.16 5.25 5.70 5.00 5.00 78.17 715.005.005.0078.18 5.25 5.70 78.19 (c) The actuarial valuation must use the applicable 78.20 following payroll growth assumption for calculating the 78.21 amortization requirement for the unfunded actuarial accrued 78.22 liability where the amortization retirement is calculated as a 78.23 level percentage of an increasing payroll: 78.24 payroll growth 78.25 plan assumption 78.26 general state employees retirement plan 5.00% 78.27 correctional state employees retirement plan 5.00 78.28 state patrol retirement plan 5.00 78.29 legislators retirement plan 5.00 78.30 elective state officers retirement plan 5.00 78.31 judges retirement plan 5.00 78.32 general public employees retirement plan 6.00 78.33 public employees police and fire 78.34 retirement plan 6.00 78.35 local government correctional service 78.36 retirement plan 6.00 78.37 teachers retirement plan 5.00 78.38 Duluth teachers retirement plan 5.00 78.39 Minneapolis teachers retirement plan 5.00 78.40 St. Paul teachers retirement plan 5.00 78.41 Sec. 2. [EFFECTIVE DATE.] 78.42 Section 1 is effective on June 30, 2002. 78.43 ARTICLE 10 78.44 AUTHORIZATION OF ADDITIONAL 78.45 SUPPLEMENTAL RETIREMENT PLANS 78.46 Section 1. Minnesota Statutes 2001 Supplement, section 78.47 356.24, subdivision 1, is amended to read: 78.48 Subdivision 1. [RESTRICTION; EXCEPTIONS.] It is unlawful 78.49 for a school district or other governmental subdivision or state 78.50 agency to levy taxes for, or contribute public funds to a 78.51 supplemental pension or deferred compensation plan that is 78.52 established, maintained, and operated in addition to a primary 79.1 pension program for the benefit of the governmental subdivision 79.2 employees other than: 79.3 (1) to a supplemental pension plan that was established, 79.4 maintained, and operated before May 6, 1971; 79.5 (2) to a plan that provides solely for group health, 79.6 hospital, disability, or death benefits; 79.7 (3) to the individual retirement account plan established 79.8 by chapter 354B; 79.9 (4) to a plan that provides solely for severance pay under 79.10 section 465.72 to a retiring or terminating employee; 79.11 (5) for employees other than personnel employed by the 79.12 board of trustees of the Minnesota state colleges and 79.13 universities and covered under the higher education supplemental 79.14 retirement plan under chapter 354C, if provided for in a 79.15 personnel policy of the public employer or in the collective 79.16 bargaining agreement between the public employer and the 79.17 exclusive representative of public employees in an appropriate 79.18 unit, in an amount matching employee contributions on a dollar 79.19 for dollar basis, but not to exceed an employer contribution of 79.20 $2,000 a year per employee; 79.21 (i) to the state of Minnesota deferred compensation plan 79.22 under section 352.96; or 79.23 (ii) in payment of the applicable portion of the 79.24 contribution made to any investment eligible under section 79.25 403(b) of the Internal Revenue Code, if the employing unit has 79.26 complied with any applicable pension plan provisions of the 79.27 Internal Revenue Code with respect to the tax-sheltered annuity 79.28 program during the preceding calendar year; 79.29 (6) for personnel employed by the board of trustees of the 79.30 Minnesota state colleges and universities and not covered by 79.31 clause (5), to the supplemental retirement plan under chapter 79.32 354C, if provided for in a personnel policy or in the collective 79.33 bargaining agreement of the public employer with the exclusive 79.34 representative of the covered employees in an appropriate unit, 79.35 in an amount matching employee contributions on a dollar for 79.36 dollar basis, but not to exceed an employer contribution of 80.1 $2,700 a year for each employee; 80.2 (7) to a supplemental plan or to a governmental trust to 80.3 save for postretirement health care expenses qualified for 80.4 tax-preferred treatment under the Internal Revenue Code, if 80.5 provided for in a personnel policy or in the collective 80.6 bargaining agreement of a public employer with the exclusive 80.7 representative of the covered employees in an appropriate unit; 80.8or80.9 (8) to the laborer's national industrial pension fund for 80.10 the employees of a governmental subdivision who are covered by a 80.11 collective bargaining agreement that provides for coverage by 80.12 that fund and that sets forth a fund contribution rate, but not 80.13 to exceed an employer contribution of $2,000 per year per 80.14 employee; 80.15 (9) to the plumbers' and pipefitters' national pension fund 80.16 for the employees of a governmental subdivision who are covered 80.17 by a collective bargaining agreement that provides for coverage 80.18 by that fund and that sets forth a fund contribution rate, but 80.19 not to exceed an employer contribution of $2,000 per year per 80.20 employee; 80.21 (10) to the international union of operating engineers 80.22 pension fund for the employees of a governmental subdivision who 80.23 are covered by a collective bargaining agreement that provides 80.24 for coverage by that fund and that sets forth a fund 80.25 contribution rate, but not to exceed an employer contribution of 80.26 $2,000 per year per employee; or 80.27 (11) to a supplemental plan organized and operated under 80.28 the federal Internal Revenue Code, as amended, that is wholly 80.29 and solely funded by the employee's accumulated sick leave, 80.30 accumulated vacation leave, and accumulated severance pay. 80.31 Sec. 2. Minnesota Statutes 2000, section 356.25, is 80.32 amended to read: 80.33 356.25 [LOCAL GOVERNMENTAL PENSION FUND PROHIBITIONS; 80.34 EXCLUSIONS.] 80.35 Notwithstanding any other provision of law or charter, no 80.36 city, county, public agency or instrumentality, or other 81.1 political subdivisionshall, after August 1, 1975,is required 81.2 or permitted to establish for any of its employees any local 81.3 pension plan or fund financed in whole or in part from public 81.4 funds, other than: 81.5 (1) a supplemental pension or deferred compensation plan 81.6 authorized under section 356.24; or 81.7 (2) a volunteer firefighter's relief association 81.8 establishedpursuant tounder chapter 424A and governed by 81.9 sections 69.771 to 69.776. 81.10 Sec. 3. [RATIFICATION AND VALIDATION OF CERTAIN PAST 81.11 ACTIONS.] 81.12 Any supplemental pension plan that is organized and 81.13 operated under section 401(a) of the federal Internal Revenue 81.14 Code, as amended, that is wholly and solely funded by an 81.15 employee's accumulated sick leave, accumulated vacation leave, 81.16 and accumulated severance pay, and that was established before 81.17 the effective date of this act and any contributions to the plan 81.18 that may be characterized as public funds within the meaning of 81.19 Minnesota Statutes, section 356.24, are hereby ratified and 81.20 validated. 81.21 Sec. 4. [EFFECTIVE DATE.] 81.22 Sections 1 to 3 are effective on the day following final 81.23 enactment. 81.24 ARTICLE 11 81.25 GENERAL RETIREMENT LAW 81.26 REORGANIZATION AND RECODIFICATION 81.27 PUBLIC RETIREMENT PLAN PURPOSE 81.28 Section 1. Minnesota Statutes 2000, section 356.001, is 81.29 amended to read: 81.30 356.001 [PURPOSE OF PUBLIC PLANS.] 81.31 Subdivision 1. [EXCLUSIVE BENEFIT OF MEMBERS AND 81.32 BENEFICIARIES.] (a) The public plans and funds specified in 81.33 subdivision 4 are established to provide for the retirement of 81.34 their members and to provide funds for the beneficiaries of 81.35 members in the event of death of a member. 81.36 (b) The public plans and funds are established andshall82.1 must be maintained for the exclusive benefit of the members and 82.2 the beneficiaries of the members. Except as provided in 82.3 subdivisions 2 and 3, no part of the moneys of the plans and 82.4 fundsshallmay revert to the plan or fund or be used for or 82.5 diverted to purposes other than the exclusive benefit of the 82.6 members or their beneficiaries. 82.7 Subd. 2. [ALLOWABLE EXPENSES.] The necessary, reasonable, 82.8 and direct expenses of maintaining, protecting, and 82.9 administering the public plan or fund, as authorized in the laws 82.10 governing the plan or fund,shallmust be considered as 82.11 expenditures for the exclusive benefit of the members or their 82.12 beneficiaries. 82.13 Subd. 3. [EFFECT OF AMENDMENTS OR TERMINATION.] (a) If a 82.14 public plan or fundasdefined in subdivision 4 is terminated or 82.15 the plan or fund provisions are amended, no part of the moneys 82.16 held in the plan or fundshallmay be used for or diverted to 82.17 any purpose other than the exclusive benefit of the members or 82.18 their beneficiaries, except as provided in this subdivision. 82.19 (b) If a plan or fund is terminated, all affected members 82.20 have a nonforfeitable interest in their benefits that were 82.21 accrued and funded to date. The value of the accrued benefits 82.22 to be credited to the account of each affected membershallmust 82.23 be calculated as of the date of termination and the funding 82.24 ratio of the plan or fund must be applied to the accrued benefit 82.25 of each affected member. 82.26 (c) The board of trustees of the plan or fund shallthen, 82.27 as soon as administratively feasible following the termination, 82.28 pay each eligible member or beneficiary on behalf of a member 82.29 the amount in the member's account in a lump sum. In the case 82.30 of a member whose whereabouts is unknown, the board shall notify 82.31 the member at the last known address by certified mail with 82.32 return receipt requested advising the member of the member's 82.33 right to a pending distribution. If the member cannot be 82.34 located in this manner, the board shall establish a custodial 82.35 account for the member's benefit in a federally insured bank, 82.36 savings association, or credit union in which the member's 83.1 account balanceshallmust be deposited. If the board receives 83.2 proof of death of a member that is satisfactory to the board, 83.3 the account balanceshallmust be paid to the beneficiary of the 83.4 member. 83.5 Subd. 4. [COVERED PLANS AND FUNDS.] This section applies 83.6 to all public pension and retirement plans and funds established 83.7pursuant tounder the laws of the state of Minnesota that 83.8 receive contributions from moneys derived from taxation. 83.9 Subd. 5. [CONSTRUCTION.] Nothing contained in this section 83.10shallmay be construed to authorize, or otherwise imply, a 83.11 legislative policy or intent favoring the termination of any 83.12 plan or fund to which this section applies. 83.13 PUBLIC PENSION PLAN ACTUARIAL, FINANCIAL, 83.14 AND INVESTMENT REPORTING 83.15 Sec. 2. Minnesota Statutes 2000, section 356.20, 83.16 subdivision 1, is amended to read: 83.17 Subdivision 1. [REPORT REQUIRED.] (a) The governing or 83.18 managing board or administrative officials of the public pension 83.19 and retirement funds enumerated in subdivision 2 shall annually 83.20 prepare and file a financial report following the close of each 83.21 fiscal year. 83.22 (b) This requirementshallalsoapplyapplies to any plan 83.23 or fund which may be a successor to any organization so 83.24 enumerated or to any newly formed retirement plan, fund or 83.25 association operating under the control or supervision of any 83.26 public employee group, governmental unit, or institution 83.27 receiving a portion of its support through legislative 83.28 appropriations. 83.29 (c) The reportshallmust be prepared under the supervision 83.30 and at the direction of the management of each fund andshall83.31 must be signed by the presiding officer of the managing board of 83.32 the fund and the chief administrative official of the fund. 83.33 Sec. 3. Minnesota Statutes 2000, section 356.20, 83.34 subdivision 2, is amended to read: 83.35 Subd. 2. [COVERED PUBLIC PENSION PLANS AND FUNDS.] This 83.36 section applies to the following public pension plans: 84.1 (1) the general state employees retirementfund.plan of 84.2 the Minnesota state retirement system; 84.3 (2) the general employees retirement plan of the public 84.4 employees retirementfund.association; 84.5 (3) the teachers retirement association.; 84.6 (4) the state patrol retirementfund.plan; 84.7 (5) the Minneapolis teachers retirement fund association.; 84.8 (6) the St. Paul teachers retirement fund association.; 84.9 (7) the Duluth teachers retirement fund association.; 84.10 (8) the Minneapolis employees retirement fund.; 84.11 (9) the University of Minnesota faculty retirement plan.; 84.12 (10) the University of Minnesota faculty supplemental 84.13 retirement plan.; 84.14 (11) the judges retirement fund.; 84.15 (12)Anya police or firefighter's relief association 84.16enumerateddescribed in section 69.77, subdivision 1a, or 84.17 69.771, subdivision 1.; 84.18 (13) the public employees police and firefund.plan of the 84.19 public employees retirement association; 84.20 (14) the correctional state employees retirement plan of 84.21 the Minnesota state retirement systemcorrectional officers84.22retirement fund.; and 84.23 (15)public employeesthe local government correctional 84.24 service retirement plan of the public employees retirement 84.25 association. 84.26 Sec. 4. Minnesota Statutes 2000, section 356.20, 84.27 subdivision 3, is amended to read: 84.28 Subd. 3. [FILING REQUIREMENT.] The financial report is a 84.29 public record. A copy of the report or a synopsis of the report 84.30 containing the information required by this sectionshallmust 84.31 be distributed annually to each member of the fund and to the 84.32 governing body of each governmental subdivision of the state 84.33 which makes employers contributions thereto or in whose behalf 84.34 taxes are levied for the employers' contribution. A signed copy 84.35 of the reportshallmust be delivered to the executive director 84.36 of the legislative commission on pensions and retirement and to 85.1 the legislative reference library not later than six months 85.2 after the close of each fiscal year or one month following the 85.3 completion and delivery to the retirement fund of the actuarial 85.4 valuation report of the fund by the actuary retained by the 85.5 legislative commission on pensions and retirement, if 85.6 applicable, whichever is later. 85.7 Sec. 5. Minnesota Statutes 2000, section 356.20, 85.8 subdivision 4, is amended to read: 85.9 Subd. 4. [CONTENTS OF FINANCIAL REPORT.] (a) The financial 85.10 report required by this section must contain financial 85.11 statements and disclosures that indicate the financial 85.12 operations and position of the retirement plan and fund. The 85.13 report must conform with generally accepted governmental 85.14 accounting principles, applied on a consistent basis. The 85.15 report must be audited. The report must include, as part of its 85.16 exhibits or footnotes, an actuarial disclosure item based on the 85.17 actuarial valuation calculations prepared by the 85.18 commission-retained actuary or by the actuary retained by the 85.19 retirement fund or plan, if applicable, according to applicable 85.20 actuarial requirements enumerated in section 356.215, and 85.21 specified in the most recent standards for actuarial work 85.22 adopted by the legislative commission on pensions and 85.23 retirement. The accrued assets, the accrued liabilities, 85.24 including accrued reserves, and the unfunded actuarial accrued 85.25 liability of the fund or plan must be disclosed. The disclosure 85.26 item must contain a declaration by the actuary retained by the 85.27 legislative commission on pensions and retirement or the actuary 85.28 retained by the fund or plan, whichever applies, specifying that 85.29 the required reserves for any retirement, disability, or 85.30 survivor benefits provided under a benefit formula are computed 85.31 in accordance with the entry age actuarial cost method and with 85.32 the most recent applicable standards for actuarial work adopted 85.33 by the legislative commission on pensions and retirement. 85.34(a)(b) Assets of the fund or plan contained in the 85.35 disclosure item must include the following statement of the 85.36 actuarial value of current assets as defined in section 356.215, 86.1 subdivision 1: 86.2 Value Value 86.3 at cost at market 86.4 Cash, cash equivalents, and 86.5 short-term securities ......... ......... 86.6 Accounts receivable ......... ......... 86.7 Accrued investment income ......... ......... 86.8 Fixed income investments ......... ......... 86.9 Equity investments other 86.10 than real estate ......... ......... 86.11 Real estate investments ......... ......... 86.12 Equipment ......... ......... 86.13 Equity in the Minnesota 86.14 postretirement investment 86.15 fund ......... ......... 86.16 Other ......... ......... 86.17 86.18 Total assets 86.19 Value at cost ......... 86.20 Value at market ......... 86.21 Value of current assets ......... 86.22(b)(c) The unfunded actuarial accrued liability of the 86.23 fund or plan contained in the disclosure item must include the 86.24 following measures of unfunded actuarial accrued liability, 86.25 using the value of current assets: 86.26 (1) unfunded actuarial accrued liability, determined by 86.27 subtracting the current assets and the present value of future 86.28 normal costs from the total current and expected future benefit 86.29 obligations; and 86.30 (2) unfunded pension benefit obligation, determined by 86.31 subtracting the current assets from the actuarial present value 86.32 of credited projected benefits. 86.33 If the current assets of the fund or plan exceed the 86.34 actuarial accrued liabilities, the excess must be disclosed and 86.35 indicated as a surplus. 86.36(c)(d) The pension benefit obligations schedule included 87.1 in the disclosure must contain the following information on the 87.2 benefit obligations: 87.3 (1) the pension benefit obligation, determined as the 87.4 actuarial present value of credited projected benefits on 87.5 account of service rendered to date, separately identified as 87.6 follows: 87.7 (i) for annuitants; 87.8 retirement annuities; 87.9 disability benefits; 87.10 surviving spouse and child benefits; 87.11 (ii) for former members without vested rights; 87.12 (iii) for deferred annuitants' benefits, including 87.13 any augmentation; 87.14 (iv) for active employees; 87.15 accumulated employee contributions, 87.16 including allocated investment income; 87.17 employer-financed benefits vested; 87.18 employer-financed benefits nonvested; 87.19 total pension benefit obligation; and 87.20 (2) if there are additional benefits not appropriately 87.21 covered by the foregoing items of benefit obligations, a 87.22 separate identification of the obligation. 87.23(d)(e) Any additional statements or exhibits or more 87.24 detailed or subdivided itemization of a disclosure item that 87.25 will enable the management of the fund to portray a true 87.26 interpretation of the fund's financial condition must be 87.27 included in the additional statements or exhibits. 87.28 Sec. 6. Minnesota Statutes 2000, section 356.20, 87.29 subdivision 4a, is amended to read: 87.30 Subd. 4a. [FINANCIAL REPORT FOR POLICE OR FIREFIGHTERS 87.31 RELIEF ASSOCIATION.] For any police or firefighter's relief 87.32 association referred to in subdivision 2, clause (12), a 87.33 financial report duly filedpursuant toand meeting the 87.34 requirements of section 69.051shallmust be deemed to have met 87.35 the requirements of subdivision 4. 87.36 Sec. 7. Minnesota Statutes 2000, section 356.215, as 88.1 amended by Laws 2001, First Special Session chapter 10, article 88.2 11, section 18, is amended to read: 88.3 356.215 [ACTUARIAL VALUATIONS AND EXPERIENCE STUDIES.] 88.4 Subdivision 1. [DEFINITIONS.] (a) For the purposes of 88.5 sections 3.85 and 356.20 to 356.23, each of the terms in the 88.6 following paragraphs have the meaning given. 88.7 (b) "Actuarial valuation" means a set of calculations 88.8 prepared by the actuary retained by the legislative commission 88.9 on pensions and retirement if so required under section 3.85, or 88.10 otherwise, by an approved actuary, to determine the normal cost 88.11 and the accrued actuarial liabilities of a benefit plan, 88.12 according to the entry age actuarial cost method and based upon 88.13 stated assumptions including, but not limited to rates of 88.14 interest, mortality, salary increase, disability, withdrawal, 88.15 and retirement and to determine the payment necessary to 88.16 amortize over a stated period any unfunded accrued actuarial 88.17 liability disclosed as a result of the actuarial valuation of 88.18 the benefit plan. 88.19 (c) "Approved actuary" means a person who is regularly 88.20 engaged in the business of providing actuarial services and who 88.21 has at least 15 years of service to major public employee 88.22 pension or retirement funds or who is a fellow in the society of 88.23 actuaries. 88.24 (d) "Entry age actuarial cost method" means an actuarial 88.25 cost method under which the actuarial present value of the 88.26 projected benefits of each individual currently covered by the 88.27 benefit plan and included in the actuarial valuation is 88.28 allocated on a level basis over the service of the individual, 88.29 if the benefit plan is governed by section 69.773, or over the 88.30 earnings of the individual, if the benefit plan is governed by 88.31 any other law, between the entry age and the assumed exit age, 88.32 with the portion ofthisthe actuarial present value which is 88.33 allocated to the valuation year to be the normal cost and the 88.34 portion ofthisthe actuarial present value not provided for at 88.35 the valuation date by the actuarial present value of future 88.36 normal costs to be the actuarial accrued liability, with 89.1 aggregation in the calculation process to be the sum of the 89.2 calculated result for each covered individual and with 89.3 recognition given to any different benefit formulas which may 89.4 apply to various periods of service. 89.5 (e) "Experience study" means a report providing experience 89.6 data and an actuarial analysis of the adequacy of the actuarial 89.7 assumptions on which actuarial valuations are based. 89.8 (f) "Current assets" means: 89.9 (1)for the July 1, 1999, actuarial valuation, the value of89.10all assets at cost, including realized capital gains or losses,89.11plus one-third of any unrealized capital gains or losses;89.12(2) for the July 1, 2000, actuarial valuation, the market89.13value of all assets as of June 30, 2000, reduced by:89.14(i) 60 percent of the difference between the market value89.15of all assets as of June 30, 1999, and the actuarial value of89.16assets used in the July 1, 1999, actuarial valuation, and89.17(ii) 80 percent of the difference between the actual net89.18change in the market value of assets between June 30, 1999, and89.19June 30, 2000, and the computed increase in the market value of89.20assets between June 30, 1999, and June 30, 2000, if the assets89.21had increased at the percentage preretirement interest rate89.22assumption used in the July 1, 1999, actuarial valuation;89.23(3)for the July 1, 2001, actuarial valuation, the market 89.24 value of all assets as of June 30, 2001, reduced by: 89.25 (i) 30 percent of the difference between the market value 89.26 of all assets as of June 30, 1999, and the actuarial value of 89.27 assets used in the July 1, 1999, actuarial valuation; 89.28 (ii) 60 percent of the difference between the actual net 89.29 change in the market value of assets between June 30, 1999, and 89.30 June 30, 2000, and the computed increase in the market value of 89.31 assets between June 30, 1999, and June 30, 2000, if the assets 89.32 had increased at the percentage preretirement interest rate 89.33 assumption used in the July 1, 1999, actuarial valuation; and 89.34 (iii) 80 percent of the difference between the actual net 89.35 change in the market value of assets between June 30, 2000, and 89.36 June 30, 2001, and the computed increase in the market value of 90.1 assets between June 30, 2000, and June 30, 2001, if the assets 90.2 had increased at the percentage preretirement interest rate 90.3 assumption used in the July 1, 2000, actuarial valuation; 90.4(4)(2) for the July 1, 2002, actuarial valuation, the 90.5 market value of all assets as of June 30, 2002, reduced by: 90.6 (i) ten percent of the difference between the market value 90.7 of all assets as of June 30, 1999, and the actuarial value of 90.8 assets used in the July 1, 1999, actuarial valuation; 90.9 (ii) 40 percent of the difference between the actual net 90.10 change in the market value of assets between June 30, 1999, and 90.11 June 30, 2000, and the computed increase in the market value of 90.12 assets between June 30, 1999, and June 30, 2000, if the assets 90.13 had increased at the percentage preretirement interest rate 90.14 assumption used in the July 1, 1999, actuarial valuation; 90.15 (iii) 60 percent of the difference between the actual net 90.16 change in the market value of assets between June 30, 2000, and 90.17 June 30, 2001, and the computed increase in the market value of 90.18 assets between June 30, 2000, and June 30, 2001, if the assets 90.19 had increased at the percentage preretirement interest rate 90.20 assumption used in the July 1, 2000, actuarial valuation; and 90.21 (iv) 80 percent of the difference between the actual net 90.22 change in the market value of assets between June 30, 2001, and 90.23 June 30, 2002, and the computed increase in the market value of 90.24 assets between June 30, 2001, and June 30, 2002, if the assets 90.25 had increased at the percentage preretirement interest rate 90.26 assumption used in the July 1, 2001, actuarial valuation; or 90.27(5)(3) for any actuarial valuation after July 1, 2002, the 90.28 market value of all assets as of the preceding June 30, reduced 90.29 by: 90.30 (i) 20 percent of the difference between the actual net 90.31 change in the market value of assets between the June 30 that 90.32 occurred three years earlier and the June 30 that occurred four 90.33 years earlier and the computed increase in the market value of 90.34 assets over that fiscal year period if the assets had increased 90.35 at the percentage preretirement interest rate assumption used in 90.36 the actuarial valuation for the July 1 that occurred four years 91.1 earlier; 91.2 (ii) 40 percent of the difference between the actual net 91.3 change in the market value of assets between the June 30 that 91.4 occurred two years earlier and the June 30 that occurred three 91.5 years earlier and the computed increase in the market value of 91.6 assets over that fiscal year period if the assets had increased 91.7 at the percentage preretirement interest rate assumption used in 91.8 the actuarial valuation for the July 1 that occurred three years 91.9 earlier; 91.10 (iii) 60 percent of the difference between the actual net 91.11 change in the market value of assets between the June 30 that 91.12 occurred one year earlier and the June 30 that occurred two 91.13 years earlier and the computed increase in the market value of 91.14 assets over that fiscal year period if the assets had increased 91.15 at the percentage preretirement interest rate assumption used in 91.16 the actuarial valuation for the July 1 that occurred two years 91.17 earlier; and 91.18 (iv) 80 percent of the difference between the actual net 91.19 change in the market value of assets between the immediately 91.20 prior June 30 and the June 30 that occurred one year earlier and 91.21 the computed increase in the market value of assets over that 91.22 fiscal year period if the assets had increased at the percentage 91.23 preretirement interest rate assumption used in the actuarial 91.24 valuation for the July 1 that occurred one year earlier. 91.25 (g) "Unfunded actuarial accrued liability" means the total 91.26 current and expected future benefit obligations, reduced by the 91.27 sum of current assets and the present value of future normal 91.28 costs. 91.29 (h) "Pension benefit obligation" means the actuarial 91.30 present value of credited projected benefits, determined as the 91.31 actuarial present value of benefits estimated to be payable in 91.32 the future as a result of employee service attributing an equal 91.33 benefit amount, including the effect of projected salary 91.34 increases and any step rate benefit accrual rate differences, to 91.35 each year of credited and expected future employee service. 91.36 Subd. 2. [REQUIREMENTS.] (a) It is the policy of the 92.1 legislature that it is necessary and appropriate to determine 92.2 annually the financial status of tax supported retirement and 92.3 pension plans for public employees. To achieve this goal: 92.4 (1) the legislative commission on pensions and retirement 92.5 shall have prepared by the actuary retained by the commission 92.6 annual actuarial valuations of the retirement plans enumerated 92.7 in section 3.85, subdivision 11, paragraph (b), and quadrennial 92.8 experience studies of the retirement plans enumerated in section 92.9 3.85, subdivision 11, paragraph (b), clauses (1), (2), and (7); 92.10 and 92.11 (2) the commissioner of finance may have prepared by the 92.12 actuary retained by the commission, two years after each set of 92.13 quadrennial experience studies, quadrennial projection 92.14 valuations of at least one of the retirement plans enumerated in 92.15 section 3.85, subdivision 11, paragraph (b), for which the 92.16 commissioner determines that the analysis may be beneficial. 92.17 (b) The governing or managing board or administrative 92.18 officials of each public pension and retirement fund or plan 92.19 enumerated in section 356.20, subdivision 2, clauses (9), (10), 92.20 and (12), shall have prepared by an approved actuary annual 92.21 actuarial valuations of their respective funds as provided in 92.22 this section. This requirement also applies to any fund or plan 92.23 that is the successor to any organization enumerated in section 92.24 356.20, subdivision 2, or to the governing or managing board or 92.25 administrative officials of any newly formed retirement fund, 92.26 plan, or association operating under the control or supervision 92.27 of any public employee group, governmental unit, or institution 92.28 receiving a portion of its support through legislative 92.29 appropriations, and any local police or fire fundcoming within92.30the provisions ofto which section 356.216 applies. 92.31 Subd. 2a. [PROJECTION VALUATION REQUIREMENTS.] (a) A 92.32 quadrennial projection valuationrequiredauthorized under 92.33 subdivision 2 is intended to serve as an additional analytical 92.34 tool with which policy makers may assess the future funding 92.35 status of public plans through forecasting and testing various 92.36 potential outcomes over time if certain plan assumptions or 93.1 valuation methods were to be modified. 93.2 (b) In consultation with the retirement fund directors, the 93.3 state economist, the state demographer, the commissioner of 93.4 finance, and the commissioner of employee relations, the actuary 93.5 retained by the legislative commission on pensions and 93.6 retirement shall perform the quadrennial projection valuations 93.7 on behalf of the commissioner of finance, testing future 93.8 implications for plan funding by modifying assumptions and 93.9 methods currently in place. The commission-retained actuary 93.10 shall provide advice to the commissioner as to the periods over 93.11 which such projections should be made, the nature and scope of 93.12 the scenarios to be analyzed, and the measures of funding status 93.13 to be employed, and shall report the results of these analyses 93.14 in the same manner as for quadrennial experience studies. 93.15 Subd. 3. [REPORTS.] (a) The actuarial valuations required 93.16 annually must be made as of the beginning of each fiscal year. 93.17 (b) Two copies of the valuation must be delivered to the 93.18 executive director of the legislative commission on pensions and 93.19 retirement, to the commissioner of finance and to the 93.20 legislative reference library, not later than the first day of 93.21 the sixth month occurring after the end of the previous fiscal 93.22 year. 93.23 (c) Two copies of a quadrennial experience study must be 93.24 filed with the executive director of the legislative commission 93.25 on pensions and retirement, with the commissioner of finance, 93.26 and with the legislative reference library, not later than the 93.27 first day of the 11th month occurring after the end of the last 93.28 fiscal year of the four-year period which the experience study 93.29 covers. 93.30 (d) For actuarial valuations and experience studies 93.31 prepared at the direction of the legislative commission on 93.32 pensions and retirement, two copies of the document must be 93.33 delivered to the governing or managing board or administrative 93.34 officials of the applicable public pension and retirement fund 93.35 or plan. 93.36 Subd. 4. [ACTUARIAL VALUATION; CONTENTS.] (a) The 94.1 actuarial valuation must be made in conformity with the 94.2 requirements of the definition contained in subdivision 1 and 94.3 the most recent standards for actuarial work adopted by the 94.4 legislative commission on pensions and retirement. 94.5 (b) The actuarial valuation must measure all aspects of the 94.6 benefit plan of the fund in accordance with changes in benefit 94.7 plans, if any, and salaries reasonably anticipated to be in 94.8 force during the ensuing fiscal year. The actuarial valuation 94.9 must be prepared in accordance with the entry age actuarial cost 94.10 method. The actuarial valuation required under this section 94.11 must include the information required in subdivisions4a5 to4k94.12 15. 94.13 Subd.4a5. [NORMAL COST.] For a fund providing benefits 94.14 in whole or in part under a defined benefit plan, the actuarial 94.15 valuation must indicate the level normal cost of the benefits 94.16 providedbyunder the laws governing the fund as of the date of 94.17 the valuation, calculated in accordance with the entry age 94.18 actuarial cost method. The normal cost must be expressed as a 94.19 level percentage of the present value of future payrolls of the 94.20 active participants of the fund as of the date of the valuation. 94.21 Subd.4b6. [ACCRUED LIABILITY.] For a fund providing 94.22 benefits under a defined benefit plan, the actuarial valuation 94.23 must contain an exhibit indicating the actuarial accrued 94.24 liabilities of the fund. This figure is the present value of 94.25 future benefits,reduced by the present value of future normal 94.26 costs, calculated in accordance with the entry age actuarial 94.27 cost method. 94.28 Subd.4c7. [DEFINED CONTRIBUTION PLAN ACCUMULATIONS.] For 94.29 each fund providing benefits underthea money purchase or 94.30 defined contribution plan, the actuarial valuationshallmust 94.31 contain an exhibit indicating the member contributions 94.32 accumulated at interest, as apportioned to members accounts, to 94.33 the date of the valuation. These accumulationsshallmust be 94.34 separately tabulated in a manner which properly reflects any 94.35 differences in money purchase or defined contribution annuity 94.36 rates which may apply. 95.1 Subd.4d8. [INTEREST AND SALARY ASSUMPTIONS.] (a) The 95.2 actuarial valuation must use the applicable following 95.3 preretirement interest assumption and the applicable following 95.4 postretirement interest assumption: 95.5 preretirement postretirement 95.6 interest rate interest rate 95.7 plan assumption assumption 95.8 general state employees 95.9 retirement plan 8.5% 6.0% 95.10 correctional state employees 95.11 retirement plan 8.5 6.0 95.12 state patrol retirement plan 8.5 6.0 95.13 legislators retirement plan 8.5 6.0 95.14 elective state officers 95.15 retirement plan 8.5 6.0 95.16 judges retirement plan 8.5 6.0 95.17 general public employees 95.18 retirement plan 8.5 6.0 95.19 public employees police and fire 95.20 retirement plan 8.5 6.0 95.21 local government correctional 95.22 service retirement plan 8.5 6.0 95.23 teachers retirement plan 8.5 6.0 95.24 Minneapolis employees 95.25 retirement plan 6.0 5.0 95.26 Duluth teachers retirement plan 8.5 8.5 95.27 Minneapolis teachers retirement 95.28 plan 8.5 8.5 95.29 St. Paul teachers retirement 95.30 plan 8.5 8.5 95.31 Minneapolis police relief 95.32 association 6.0 6.0 95.33other localFairmont police relief 95.34associationsassociation 5.0 5.0 95.35 Minneapolis fire department 95.36 relief association 6.0 6.0 95.37other local salaried firefighters95.38 Virginia fire department 95.39 reliefassociationsassociation 5.0 5.0 95.40 local monthly benefit volunteer 95.41 firefighters relief associations 5.0 5.0 95.42 (b) The actuarial valuation must use the applicable 95.43 following single rate future salary increase assumption, the 95.44 applicable following modified single rate future salary increase 95.45 assumption, or the applicable following graded rate future 95.46 salary increase assumption: 95.47 (1) single rate future salary increase assumption 95.48 future salary 95.49 plan increase assumption 95.50 legislators retirement plan 5.0% 95.51 elective state officers retirement 95.52 plan 5.0 95.53 judges retirement plan 5.0 95.54 Minneapolis police relief association 4.0 95.55other localFairmont police relief 95.56associationsassociation 3.5 95.57 Minneapolis fire department relief 95.58 association 4.0 95.59other local salaried firefighters95.60 Virginia fire department 96.1 reliefassociationsassociation 3.5 96.2 (2) modified single rate future salary increase assumption 96.3 future salary 96.4 plan increase assumption 96.5 Minneapolis employees the prior calendar year 96.6 retirement plan amount increased first by 96.7 1.0198 percent to prior 96.8 fiscal year date and 96.9 then increased by 4.0 96.10 percent annually for 96.11 each future year 96.12 (3) select and ultimate future salary increase assumption 96.13 or graded rate future salary increase assumption 96.14 future salary 96.15 plan increase assumption 96.16 general state employees select calculation and 96.17 retirement plan assumption A 96.18 correctional state employees 96.19 retirement plan assumption H 96.20 state patrol retirement plan assumption H 96.21 general public employees select calculation and 96.22 retirement plan assumption B 96.23 public employees police and fire 96.24 fund retirement plan assumption C 96.25 local government correctional service 96.26 retirement plan assumption H 96.27 teachers retirement plan assumption D 96.28 Duluth teachers retirement plan assumption E 96.29 Minneapolis teachers retirement plan assumption F 96.30 St. Paul teachers retirement plan assumption G 96.31 96.32 The select calculation is: 96.33 during the ten-year select period,0.2a designated percent 96.34 is multiplied by the result of ten minus T, where T is 96.35 the number of completed years of service, and is added 96.36 to the applicable future salary increase assumption. The 96.37 designated percent is 0.2 percent for the correctional state 96.38 employees retirement plan, the state patrol retirement 96.39 plan, the public employees police and fire plan, and the 96.40 local government correctional service plan; 0.3 percent 96.41 for the general state employees retirement plan, the 96.42 general public employees retirement plan, the teachers 96.43 retirement plan, the Duluth teachers retirement fund 96.44 association, and the St. Paul teachers retirement fund 96.45 association; and 0.4 percent for the Minneapolis teachers 96.46 retirement fund association. 96.47 96.48 The ultimate future salary increase assumption is: 96.49 96.50 age A B C D E F G H 96.51 16 6.95% 6.95% 11.50% 8.20% 8.00%7.50%7.25% 7.7500 96.52 6.50 6.90 96.53 17 6.90 6.90 11.50 8.15 8.007.507.257.7500 96.54 6.50 6.90 96.55 18 6.85 6.85 11.50 8.10 8.007.507.257.7500 96.56 6.50 6.90 96.57 19 6.80 6.80 11.50 8.05 8.007.507.257.7500 96.58 6.50 6.90 96.59 20 6.756.7511.508.008.007.507.257.7500 96.60 6.40 6.00 6.90 6.50 6.90 96.61 216.706.7011.507.958.007.507.257.1454 96.62 6.75 6.40 6.00 6.90 6.50 6.90 96.63 226.656.6511.007.908.007.507.257.0725 96.64 6.75 6.40 6.00 6.90 6.50 6.90 96.65 23 6.75 6.40 10.50 6.00 6.85 6.50 6.85 7.0544 96.66 246.666.5510.007.807.807.307.207.0363 97.1 6.75 6.40 6.00 6.80 6.50 6.80 97.2 256.506.509.507.757.707.207.157.0000 97.3 6.75 6.40 6.00 6.75 6.50 6.75 97.4 266.456.459.207.707.607.107.107.0000 97.5 6.75 6.36 6.00 6.70 6.50 6.70 97.6 276.406.408.907.657.507.007.057.0000 97.7 6.75 6.32 6.00 6.65 6.50 6.65 97.8 286.356.358.607.607.406.907.007.0000 97.9 6.75 6.28 6.00 6.60 6.50 6.60 97.10 296.306.308.307.557.306.806.957.0000 97.11 6.75 6.24 6.00 6.55 6.50 6.55 97.12 306.256.308.007.507.206.706.907.0000 97.13 6.75 6.20 6.00 6.50 6.50 6.50 97.14 316.206.257.807.457.106.606.857.0000 97.15 6.75 6.16 6.00 6.45 6.50 6.45 97.16 326.156.217.607.407.006.506.807.0000 97.17 6.75 6.12 6.00 6.40 6.50 6.40 97.18 336.106.177.407.306.906.406.757.0000 97.19 6.75 6.08 6.00 6.35 6.50 6.35 97.20 346.056.097.207.106.806.306.707.0000 97.21 6.75 6.04 6.00 6.30 6.50 6.30 97.22 356.006.057.007.006.706.206.657.0000 97.23 6.75 6.00 6.00 6.25 6.50 6.25 97.24 366.956.016.806.856.606.106.606.9019 97.25 6.75 5.96 6.00 6.20 6.50 6.20 97.26 375.905.976.606.706.506.006.556.8074 97.27 6.75 5.92 6.00 6.15 6.50 6.15 97.28 385.855.936.406.556.405.906.506.7125 97.29 6.75 5.88 5.90 6.10 6.50 6.10 97.30 395.805.896.206.406.305.806.406.6054 97.31 6.75 5.84 5.80 6.05 6.50 6.05 97.32 405.755.856.006.256.205.706.306.5000 97.33 41 5.70 5.81 5.90 6.10 6.10 5.60 6.20 6.3540 97.34 6.75 5.76 5.60 5.90 6.50 5.95 97.35 425.655.775.805.956.005.506.106.2087 97.36 6.75 5.72 5.50 5.80 6.50 5.90 97.37 435.605.735.705.805.905.456.006.0622 97.38 6.65 5.68 5.40 5.70 6.50 5.85 97.39 445.555.695.605.655.805.405.905.9048 97.40 6.55 5.64 5.30 5.60 6.50 5.80 97.41 455.505.655.505.505.705.355.805.7500 97.42 6.45 5.60 5.20 5.50 6.50 5.75 97.43 465.455.625.455.455.605.305.705.6940 97.44 6.35 5.56 5.10 5.40 6.40 5.70 97.45 475.405.595.405.405.505.255.65 5.6375 97.46 6.25 5.52 5.00 5.30 6.30 97.47 485.355.565.355.355.455.205.60 5.5822 97.48 6.15 5.48 5.00 5.20 6.20 97.49 495.305.535.305.305.405.155.55 5.5404 97.50 6.05 5.44 5.00 5.10 6.10 97.51 505.255.505.255.255.355.105.50 5.5000 97.52 5.95 5.40 5.00 5.00 6.00 97.53 515.205.455.255.205.305.055.45 5.4384 97.54 5.85 5.36 5.00 5.00 5.90 97.55 525.155.405.255.155.255.005.40 5.3776 97.56 5.75 5.32 5.00 5.00 5.80 97.57 535.105.355.255.105.255.005.35 5.3167 97.58 5.65 5.28 5.00 5.00 5.70 97.59 545.055.305.255.055.255.005.30 5.2826 97.60 5.55 5.24 5.00 5.00 5.60 97.61 555.005.255.25 5.005.255.005.25 5.2500 97.62 5.45 5.20 5.00 5.50 97.63 565.005.205.25 5.005.255.005.255.2500 97.64 5.35 5.16 5.00 5.40 5.20 97.65 575.005.155.25 5.005.255.005.255.2500 97.66 5.25 5.12 5.00 5.30 5.15 97.67 585.005.105.255.005.255.005.255.2500 97.68 595.005.055.255.005.255.005.255.2500 97.69 5.25 5.04 5.20 5.00 5.10 5.05 97.70 605.005.00 5.255.005.255.005.255.2500 97.71 5.25 5.30 5.00 5.00 98.1 615.005.00 5.255.005.255.005.255.2500 98.2 5.25 5.40 5.00 5.00 98.3 625.005.00 5.255.005.255.005.255.2500 98.4 5.25 5.50 5.00 5.00 98.5 635.005.00 5.255.005.255.005.255.2500 98.6 5.25 5.60 5.00 5.00 98.7 645.005.00 5.255.005.255.005.255.2500 98.8 5.25 5.70 5.00 5.00 98.9 655.005.00 5.255.005.255.005.255.2500 98.10 5.25 5.70 5.00 5.00 98.11 665.005.00 5.255.005.255.005.255.2500 98.12 5.25 5.70 5.00 5.00 98.13 675.005.00 5.255.005.255.005.255.2500 98.14 5.25 5.70 5.00 5.00 98.15 685.005.00 5.255.005.255.005.255.2500 98.16 5.25 5.70 5.00 5.00 98.17 695.005.00 5.255.005.255.005.255.2500 98.18 5.25 5.70 5.00 5.00 98.19 705.005.00 5.255.005.255.005.255.2500 98.20 5.25 5.70 5.00 5.00 98.21 715.005.005.0098.22 5.25 5.70 98.23 (c) The actuarial valuation must use the applicable 98.24 following payroll growth assumption for calculating the 98.25 amortization requirement for the unfunded actuarial accrued 98.26 liability where the amortization retirement is calculated as a 98.27 level percentage of an increasing payroll: 98.28 payroll growth 98.29 plan assumption 98.30 general state employees retirement plan 5.00% 98.31 correctional state employees retirement plan 5.00 98.32 state patrol retirement plan 5.00 98.33 legislators retirement plan 5.00 98.34 elective state officers retirement plan 5.00 98.35 judges retirement plan 5.00 98.36 general public employees retirement plan 6.00 98.37 public employees police and fire 98.38 retirement plan 6.00 98.39 local government correctional service 98.40 retirement plan 6.00 98.41 teachers retirement plan 5.00 98.42 Duluth teachers retirement plan 5.00 98.43 Minneapolis teachers retirement plan 5.00 98.44 St. Paul teachers retirement plan 5.00 98.46 Subd.4e9. [OTHER ASSUMPTIONS.] The actuarial valuation 98.47 must use assumptions concerning mortality, disability, 98.48 retirement, withdrawal, retirement age, and any other relevant 98.49 demographic or economic factor. These assumptions must be set 98.50 at levels consistent with those determined in the most recent 98.51 quadrennial experience study completed under subdivision 5, if 98.52 required, or representative of the best estimate of future 98.53 experience, if a quadrennial experience study is not required. 98.54 The actuarial valuation must contain an exhibit indicating any 98.55 actuarial assumptions used in preparing the valuation report. 99.1 Subd.4f10. [PUBLIC SECTOR ACCOUNTING DISCLOSURE 99.2 INFORMATION.] The actuarial valuation must contain those 99.3 actuarial calculations that are necessary to allow the 99.4 retirement plan administration or participating employing units 99.5 to prepare the pension-related portions of annual financial 99.6 reporting that meet generally accepted accounting principles for 99.7 the public sector. 99.8 Subd.4g11. [AMORTIZATION CONTRIBUTIONS.] (a) In addition 99.9 to the exhibit indicating the level normal cost, the actuarial 99.10 valuation must contain an exhibit indicating the additional 99.11 annual contribution sufficient to amortize the unfunded 99.12 actuarial accrued liability. For funds governed by chapters 3A, 99.13 352, 352B, 352C, 353, 354, 354A, and 490, the additional 99.14 contribution must be calculated on a level percentage of covered 99.15 payroll basis by the established date for full funding in effect 99.16 when the valuation is prepared. For funds governed by chapter 99.17 3A, sections 352.90 through 352.951, chapters 352B, 352C, 99.18 sections 353.63 through 353.68, and chapters 353C, 354A, and 99.19 490, the level percent additional contribution must be 99.20 calculated assuming annual payroll growth of 6.5 percent. For 99.21 funds governed by sections 352.01 through 352.86 and chapter 99.22 354, the level percent additional contribution must be 99.23 calculated assuming an annual payroll growth of five percent. 99.24 For the fund governed by sections 353.01 through 353.46, the 99.25 level percent additional contribution must be calculated 99.26 assuming an annual payroll growth of six percent. For all other 99.27 funds, the additional annual contribution must be calculated on 99.28 a level annual dollar amount basis. 99.29 (b) For any fund other than the Minneapolis employees 99.30 retirement fund and the public employees retirement association 99.31 general plan, if there has not been a change in the actuarial 99.32 assumptions used for calculating the actuarial accrued liability 99.33 of the fund, a change in the benefit plan governing annuities 99.34 and benefits payable from the fund, a change in the actuarial 99.35 cost method used in calculating the actuarial accrued liability 99.36 of all or a portion of the fund, or a combination of the three, 100.1 which change or changes by itself or by themselves without 100.2 inclusion of any other items of increase or decrease produce a 100.3 net increase in the unfunded actuarial accrued liability of the 100.4 fund, the established date for full funding is the first 100.5 actuarial valuation date occurring after June 1, 2020. 100.6 (c) For any fund or plan other than the Minneapolis 100.7 employees retirement fund and the public employees retirement 100.8 association general plan, if there has been a change in any or 100.9 all of the actuarial assumptions used for calculating the 100.10 actuarial accrued liability of the fund, a change in the benefit 100.11 plan governing annuities and benefits payable from the fund, a 100.12 change in the actuarial cost method used in calculating the 100.13 actuarial accrued liability of all or a portion of the fund, or 100.14 a combination of the three, and the change or changes, by itself 100.15 or by themselves and without inclusion of any other items of 100.16 increase or decrease, produce a net increase in the unfunded 100.17 actuarial accrued liability in the fund, the established date 100.18 for full funding must be determined using the following 100.19 procedure: 100.20 (i) the unfunded actuarial accrued liability of the fund 100.21 must be determined in accordance with the plan provisions 100.22 governing annuities and retirement benefits and the actuarial 100.23 assumptions in effect before an applicable change; 100.24 (ii) the level annual dollar contribution or level 100.25 percentage, whichever is applicable, needed to amortize the 100.26 unfunded actuarial accrued liability amount determined under 100.27 item (i) by the established date for full funding in effect 100.28 before the change must be calculated using the interest 100.29 assumption specified in subdivision4d8 in effect before the 100.30 change; 100.31 (iii) the unfunded actuarial accrued liability of the fund 100.32 must be determined in accordance with any new plan provisions 100.33 governing annuities and benefits payable from the fund and any 100.34 new actuarial assumptions and the remaining plan provisions 100.35 governing annuities and benefits payable from the fund and 100.36 actuarial assumptions in effect before the change; 101.1 (iv) the level annual dollar contribution or level 101.2 percentage, whichever is applicable, needed to amortize the 101.3 difference between the unfunded actuarial accrued liability 101.4 amount calculated under item (i) and the unfunded actuarial 101.5 accrued liability amount calculated under item (iii) over a 101.6 period of 30 years from the end of the plan year in which the 101.7 applicable change is effective must be calculated using the 101.8 applicable interest assumption specified in subdivision4d8 in 101.9 effect after any applicable change; 101.10 (v) the level annual dollar or level percentage 101.11 amortization contribution under item (iv) must be added to the 101.12 level annual dollar amortization contribution or level 101.13 percentage calculated under item (ii); 101.14 (vi) the period in which the unfunded actuarial accrued 101.15 liability amount determined in item (iii) is amortized by the 101.16 total level annual dollar or level percentage amortization 101.17 contribution computed under item (v) must be calculated using 101.18 the interest assumption specified in subdivision4d8 in effect 101.19 after any applicable change, rounded to the nearest integral 101.20 number of years, but not to exceed 30 years from the end of the 101.21 plan year in which the determination of the established date for 101.22 full funding using the procedure set forth in this clause is 101.23 made and not to be less than the period of years beginning in 101.24 the plan year in which the determination of the established date 101.25 for full funding using the procedure set forth in this clause is 101.26 made and ending by the date for full funding in effect before 101.27 the change; and 101.28 (vii) the period determined under item (vi) must be added 101.29 to the date as of which the actuarial valuation was prepared and 101.30 the date obtained is the new established date for full funding. 101.31 (d) For the Minneapolis employees retirement fund, the 101.32 established date for full funding is June 30, 2020. 101.33 (e) For the general employees retirement plan of the public 101.34 employees retirement associationgeneral plan, the established 101.35 date for full funding is June 30, 2031. 101.36 (f) For the retirement plans for which the annual actuarial 102.1 valuation indicates an excess of valuation assets over the 102.2 actuarial accrued liability, the valuation assets in excess of 102.3 the actuarial accrued liability must be recognized as a 102.4 reduction in the current contribution requirements by an amount 102.5 equal to the amortization of the excess expressed as a level 102.6 percentage of pay over a 30-year period beginning anew with each 102.7 annual actuarial valuation of the plan. 102.8 Subd.4h12. [ACTUARIAL GAINS AND LOSSES.] The actuarial 102.9 valuation must contain an exhibit consisting of an analysis by 102.10 the actuary explaining the net increase or decrease in the 102.11 unfunded actuarial accrued liability since the last valuation. 102.12 The explanation must subdivide the net increase or decrease in 102.13 the unfunded actuarial accrued liability into at least the 102.14 following parts: 102.15(a)(1) increases or decreases in the unfunded actuarial 102.16 accrued liability because of changes in benefits; 102.17(b)(2) increases and decreases in the unfunded actuarial 102.18 accrued liability because of changes in actuarial assumptions; 102.19(c)(3) increases or decreases in the unfunded actuarial 102.20 accrued liability attributable to actuarial gains or losses 102.21 resulting from any experience deviations from the assumptions on 102.22 which the valuation is based, as follows: 102.23 (i) actual investment earnings; 102.24 (ii) actual postretirement mortality rates; 102.25 (iii) actual salary increase rates; and 102.26 (iv) the remainder of the increase or decrease not 102.27 attributable to any separate source; 102.28(d)(4) increases or decreases in unfunded actuarial 102.29 accrued liability because of other reasons, including the effect 102.30 of any amortization contribution paid or additional amortization 102.31 contribution previously calculated but unpaid; and 102.32(e)(5) increases or decreases in unfunded actuarial 102.33 accrued liability because of changes in eligibility requirements 102.34 or groups included in the membership of the fund. 102.35 Subd.4i13. [MEMBERSHIP TABULATION.] (a) The actuarial 102.36 valuation must contain a tabulation of active membership and 103.1 annuitants in the fund. If the membership of a fund is under 103.2 more than one general benefit program, a separate tabulation 103.3 must be made for each general benefit program. 103.4 (b) The tabulations must be prepared by the administration 103.5 of the pension fund and must contain the following information: 103.6 (1) Active members Number 103.7 As of last valuation date 103.8 New entrants 103.9 Total 103.10 Separations from active service 103.11 Refund of contributions 103.12 Separation with deferred annuity 103.13 Separation with neither refund 103.14 nor deferred annuity 103.15 Disability 103.16 Death 103.17 Retirement with service annuity 103.18 Total separations 103.19 As of current valuation date 103.20 (2) Annuitants Number 103.21 As of last valuation date 103.22 New entrants 103.23 Total 103.24 Terminations 103.25 Deaths 103.26 Other 103.27 Total terminations 103.28 As of current valuation date 103.29 (c) The tabulation required under paragraph (b), clause 103.30 (2), must be made separately for each of the following classes 103.31 of benefit recipients: 103.32 (1) service retirement annuitants; 103.33 (2) disability benefit recipients; 103.34 (3) survivor benefit recipients; and 103.35 (4) deferred annuitants. 103.36 Subd.4j14. [ADMINISTRATIVE EXPENSES.] (a) The actuarial 104.1 valuation must indicate the administrative expenses of the fund, 104.2 expressed both in dollars and as a percentage of covered payroll. 104.3 (b) Administrative expenses are the costs incurred by the 104.4 retirement plans in the course of operating the plan, excluding 104.5 investment expenses. Investment expenses include all expenses 104.6 incurred for the retention of professional external investment 104.7 managers and professional investment consultants, custodian bank 104.8 fees, investment transaction costs, and the costs incurred by 104.9 the retirement plans to manage investment portfolios or assets 104.10 internally. Investment expenses must be deducted from the 104.11 investment return used in the actuarial valuation, and must not 104.12 be included in administrative expenses when calculating the 104.13 allowance for expenses. 104.14 Subd.4k15. [BENEFIT PLAN SUMMARY.] The actuarial 104.15 valuation must contain a summary of the principal provisions of 104.16 the benefit plan upon which the valuation is based. 104.17 Subd.516. [QUADRENNIAL EXPERIENCE STUDY; CONTENTS.] A 104.18 quadrennial experience study, if required, must contain an 104.19actuarialanalysis by the approved actuary of the experience of 104.20 the fund and a comparison of the experience with the actuarial 104.21 assumptions on which the most recent actuarial valuation of the 104.22 retirement fund was based. 104.23 Subd.617. [ACTUARIAL SERVICES BY APPROVED ACTUARIES.] 104.24 (a) The actuarial valuation or quadrennial experience study must 104.25 be made and any actuarial consulting services for a retirement 104.26 fund or plan must be provided by an approved actuary. The 104.27 actuarial valuation or quadrennial experience study must include 104.28 a signed written declaration that it has been prepared according 104.29 to sections 356.20 to 356.23 and according to the most recent 104.30 standards for actuarial work adopted by the legislative 104.31 commission on pensions and retirement. 104.32 (b) Actuarial valuations,or experience studies prepared by 104.33 an approved actuary retained by a retirement fund or plan must 104.34 be submitted to the legislative commission on pensions and 104.35 retirement within ten days of the submission of the document to 104.36 the retirement fund or plan. 105.1 Subd.718. [ESTABLISHMENT OF ACTUARIAL ASSUMPTIONS.] (a) 105.2 The actuarial assumptions used for the preparation of actuarial 105.3 valuations under this section that are other than those set 105.4 forth in this section may be changed only with the approval of 105.5 the legislative commission on pensions and retirement. 105.6 (b) A change in the applicable actuarial assumptions may be 105.7 proposed by the governing board of the applicable pension fund 105.8 or relief association, by the actuary retained by the 105.9 legislative commission on pensions and retirement, by the 105.10 actuarial advisor to a pension fund governed by chapter 352, 105.11 353, 354, or 354A, or by the actuary retained by a local police 105.12 or firefighters relief association governed by sections 69.77 or 105.13 69.771 to 69.776, if one is retained. 105.14 Sec. 8. Minnesota Statutes 2000, section 356.216, is 105.15 amended to read: 105.16 356.216 [CONTENTS OF ACTUARIAL VALUATIONS FOR LOCAL POLICE 105.17 AND FIRE FUNDS.] 105.18 (a) The provisions of section 356.215governingthat govern 105.19 the contents of actuarial valuationsshallmust apply to any 105.20 local police or fire pension fund or relief association required 105.21 to make an actuarial report under this section, except as 105.22 follows: 105.23 (1) in calculating normal cost and other requirements, if 105.24 required to be expressed as a level percentage of covered 105.25 payroll, the salaries used in computing covered payrollshall105.26 must be the maximum rate of salaryfromon which retirement and 105.27 survivorship credits and amounts of benefits are determined and 105.28 from which any member contributions are calculated and deducted; 105.29 (2) in lieu of the amortization date specified in section 105.30 356.215, subdivision4g11, the appropriate amortization target 105.31 date specified in section 69.77, subdivision 2b, or 69.773, 105.32 subdivision 4, clause (c),shallmust be used in calculating any 105.33 required amortization contribution; 105.34 (3) in addition to the tabulation of active members and 105.35 annuitants provided for in section 356.215, subdivision4i13, 105.36 the member contributions for active members for the calendar 106.1 year and the prospective annual retirement annuities under the 106.2 benefit plan for active membersshallmust be reported; 106.3 (4) actuarial valuations requiredpursuant tounder section 106.4 69.773, subdivision 2,shallmust be made at least every four 106.5 years and actuarial valuations requiredpursuant tounder 106.6 section 69.77 shall be made annually;and106.7 (5) the actuarial balance sheet showing accrued assets 106.8 valued at market value if the actuarial valuation is required to 106.9 be prepared at least every four years or valued as current 106.10 assets under section 356.215, subdivision 1, clause (6), or 106.11 paragraph (b), whichever applies, if the actuarial valuation is 106.12 required to be prepared annually, actuarial accrued liabilities, 106.13 and the unfunded actuarial accrued liabilityshallmust include 106.14 the following required reserves: 106.15(a)(i) For active members 106.16 1. Retirement benefits 106.17 2. Disability benefits 106.18 3. Refund liability due to death or withdrawal 106.19 4. Survivors' benefits 106.20(b)(ii) For deferred annuitants' benefits 106.21(c)(iii) For former members without vested rights 106.22(d)(iv) For annuitants 106.23 1. Retirement annuities 106.24 2. Disability annuities 106.25 3. Surviving spouses' annuities 106.26 4. Surviving children's annuities 106.27 In addition to those required reserves, separate items 106.28shallmust be shown for additional benefits, if any, which may 106.29 not be appropriately included in the reserves listed above.; and 106.30 (6) actuarial valuationsshall beare due by the first day 106.31 of the seventh month after the end of the fiscal year which the 106.32 actuarial valuation covers. 106.33 (b) Forathe Minneapolis firefighters relief association 106.34 or the Minneapolis police relief associationin a city of the106.35first class with a population of more than 300,000, the 106.36 following provisions additionally apply: 107.1 (1) in calculating the actuarial balance sheet, unfunded 107.2 actuarial accrued liability, and amortization contribution of 107.3 the relief association, "current assets" means the value of all 107.4 assets at cost, including realized capital gains and losses, 107.5 plus or minus, whichever applies, the average value of total 107.6 unrealized capital gains or losses for the most recent 107.7 three-year period ending with the end of the plan year 107.8 immediately preceding the actuarial valuation report 107.9 transmission date; and 107.10 (2) in calculating the applicable portions of the actuarial 107.11 valuation, an annual preretirement interest assumption of six 107.12 percent, an annual postretirement interest assumption of six 107.13 percent, and an annual salary increase assumption of four 107.14 percent must be used. 107.15 Sec. 9. Minnesota Statutes 2000, section 356.217, is 107.16 amended to read: 107.17 356.217 [MODIFICATIONS IN ACTUARIAL SERVICES.] 107.18 (a) The cost of any requested benefit projections prepared 107.19 by the commission-retained actuary relating to the Minnesota 107.20 postretirement investment fundforat the request of the state 107.21 board of investment is payable by the state board of investment. 107.22 (b) Actuarial valuations under section 356.215, for July 1, 107.23 1991, and thereafter, are not required to have an individual 107.24 commentary section. The commentary section, if omitted from the 107.25 individual plan actuarialvaluationvaluations, must be included 107.26 in an appropriate generalized format as part of the report to 107.27 the legislature under section 3.85, subdivision 11. 107.28 (c) Actuarial valuations under section 356.215, for July 1, 107.29 1991, and thereafter, are not required to contain separate 107.30 actuarial valuation results for basic and coordinated programs 107.31 unless each program has a membership of at least ten percent of 107.32 the total membership of the fund. Actuarial valuations under 107.33 section 356.215, for July 1, 1991, and thereafter, are not 107.34 required to contain cash flow forecasts. 107.35 (d) Actuarial valuations of the public employees police and 107.36 fire fund local consolidation accounts for July 1, 1991, and 108.1 thereafter, are not required to contain separate tabulations or 108.2 summaries of active member, service retirement, disability 108.3 retirement, and survivor data for each local consolidation 108.4 account. 108.5 (e) The commission-retained actuary is: 108.6 (1) required to publish experience findings for those 108.7 retirement plans for which experience findings are required only 108.8 on a quadrennial basis for the four-year period ending June 30, 108.9 1992, and every four years thereafter; 108.10 (2) not required to prepare a separate experience analysis 108.11 or publish separate experience findings for basic and 108.12 coordinated programs if separate actuarial valuation results for 108.13 the programs are not required; and 108.14 (3) not required to calculate investment rate of return 108.15 experience results on any basis other than current asset value 108.16 as defined in section 356.215, subdivision 1,clause108.17(6)paragraph (f). 108.18 Sec. 10. Minnesota Statutes 2000, section 356.219, is 108.19 amended to read: 108.20 356.219 [DISCLOSURE OF PUBLIC PENSION PLAN INVESTMENT 108.21 PORTFOLIO AND PERFORMANCE INFORMATION.] 108.22 Subdivision 1. [REPORT REQUIRED.] (a) Except as indicated 108.23 in subdivision 4, the state board of investment, on behalf of 108.24 the public pension funds and programs for which it is the 108.25 investment authority, and any Minnesota public pension plan that 108.26 is not fully invested through the state board of investment, 108.27 including a local police or firefighters' relief association 108.28 governed by sections 69.77 or 69.771 to 69.775, shall report the 108.29 information specified in subdivision 3 to the state auditor. 108.30 The state auditor may prescribe a form or forms for the purposes 108.31 of the reporting requirements contained in this section. 108.32 (b) A local police or firefighters' relief association 108.33 governed by section 69.77 or sections 69.771 to 69.775 is fully 108.34 invested during a given calendar year for purposes of this 108.35 section if all assets of the applicable pension plan beyond 108.36 sufficient cash equivalent investments to cover six months 109.1 expected expenses are invested under section 11A.17. The board 109.2 of any fully invested public pension plan remains responsible 109.3 for submitting investment policy statements and subsequent 109.4 revisions as required by subdivision 3, paragraph (a). 109.5 (c) For purposes of this section, the state board of 109.6 investment is considered to be the investment authority for any 109.7 Minnesota public pension fund required to be invested by the 109.8 state board of investment under section 11A.23, or for any 109.9 Minnesota public pension fund authorized to invest in the 109.10 supplemental investment fund under section 11A.17 and which is 109.11 fully invested by the state board of investment. 109.12 Subd. 2. [ASSET CLASS DEFINITION.] (a) For purposes of 109.13 this section, "asset class" means any of the following asset 109.14 groupings as authorized in applicable law, bylaws, or articles 109.15 of incorporation: 109.16 (1) cash and any cash equivalent investments with 109.17 maturities of one year or less when issued; 109.18 (2) debt securities with maturities greater than one year 109.19 when issued, including but not limited to mortgage participation 109.20 certificates and pools, asset backed securities, guaranteed 109.21 investment contracts, and authorized government and corporate 109.22 obligations of corporations organized under laws of the United 109.23 States or any state, or the Dominion of Canada or its provinces; 109.24 (3) stocks or convertible issues of any corporation 109.25 organized under laws of the United States or any state, or the 109.26 Dominion of Canada or its provinces, or any corporation listed 109.27 on the New York Stock Exchange or the American Stock Exchange; 109.28 (4) international stocks or convertible issues; 109.29 (5) international debt securities; and 109.30 (6) real estate and venture capital. 109.31 (b) If the pension plan is investing under section 69.77, 109.32 subdivision 2g, section 69.775, or any other applicable law, in 109.33 open-end investment companies registered under the federal 109.34 Investment Company Act of 1940, or in the Minnesota supplemental 109.35 investment fund under section 11A.17, this investment must be 109.36 included under an asset class indicated in paragraph (a), 110.1 clauses (1) through (6), as appropriate. If the investment 110.2 vehicle includes underlying securities from more than one asset 110.3 class as indicated by paragraph (a), clauses (1) through (6), 110.4 the investment may be treated as a separate asset class. 110.5 Subd. 3. [CONTENT OF REPORTS.] (a) The report required by 110.6 subdivision 1 must include a written statement of the investment 110.7 policy in effect on June 30, 1997, if that statement has not 110.8 been previously submitted. Following that date, subsequent 110.9 reports must include investment policy changes and the effective 110.10 date of each policy change rather than a complete statement of 110.11 investment policy, unless the state auditor requests submission 110.12 of a complete current statement. The report must also include 110.13 the information required by the following paragraphs, as 110.14 applicable. 110.15 (b) If a public pension plan has a total market value of 110.16 $10,000,000 or more as of the beginning of the calendar year, 110.17 the report required by subdivision 1 must include the market 110.18 value of the total portfolio and the market value of each 110.19 investment account, investment portfolio, or asset class 110.20 included in the pension fund as of the beginning of the calendar 110.21 year and for each month, and the amount and date of each 110.22 injection and withdrawal to the total portfolio and to each 110.23 investment account, investment portfolio, or asset class. If a 110.24 public pension plan once files a report under this paragraph, it 110.25 must continue reporting under this paragraph for any subsequent 110.26 year in which the public pension plan is not fully invested as 110.27 specified in subdivision 1, paragraph (b), even if asset values 110.28 drop below $10,000,000 in market value inathat subsequent year. 110.29 (c) For public pension plans to which paragraph (b) 110.30 applies, the report required by subdivision 1 must also include 110.31 a calculation of the total time-weighted rate of return 110.32 available from index-matching investments assuming the asset 110.33 class performance targets and target asset mix indicated in the 110.34 written statement of investment policy. The provided 110.35 information must include a description of indices used in the 110.36 analyses and an explanation of why those indices are 111.1 appropriate. This paragraph does not apply to any fully 111.2 invested plan, as defined by subdivision 1, paragraph (b). 111.3 Reporting by the state board of investment under this paragraph 111.4 is limited to information on the Minnesota public pension plans 111.5 required to be invested by the state board of investment under 111.6 section 11A.23. 111.7 (d) If a public pension plan has a total market value of 111.8 less than $10,000,000 as of the beginning of the calendar year 111.9 and was never required to file under paragraph (b), the report 111.10 required by subdivision 1 must include the amount and date of 111.11 each total portfolio injection and withdrawal. In addition, the 111.12 report must include the market value of the total portfolio as 111.13 of the beginning of the calendar year and for each quarter. 111.14 (e) Any public pension plan reporting under paragraph (b) 111.15 or (d) may include computed time-weighted rates of return with 111.16 the report, in addition to all other required information, as 111.17 applicable. If these returns are supplied, the individual who 111.18 computed the returns must certify that the returns are net of 111.19 all costs and fees, including investment management fees, and 111.20 that the procedures used to compute the returns are consistent 111.21 with bank administration institute studies of investment 111.22 performance measurement and association of investment management 111.23 and research presentation standards. 111.24 (f) For public pension plans reporting under paragraph (d), 111.25 the public pension plan must retain supporting information 111.26 specifying the date and amount of each injection and withdrawal 111.27 to each investment account and investment portfolio. The public 111.28 pension plan must also retain the market value of each 111.29 investment account and investment portfolio at the beginning of 111.30 the calendar year and for each quarter. Information that is 111.31 required to be collected and retained for any given year or 111.32 years under this paragraph must be submitted to the office of 111.33 the state auditor if the office of the state auditor requests in 111.34 writing that the information be submitted by a public pension 111.35 plan or plans, or be submitted by the state board of investment 111.36 for any plan or plans for which the state board of investment is 112.1 the investment authority under this section. If the state 112.2 auditor requests information under this subdivision, and the 112.3 public plan fails to comply, the pension planwill beis subject 112.4 to penalties under subdivision 5, unless penalties are waived by 112.5 the state auditor under that subdivision. 112.6 Subd. 4. [ALTERNATIVE REPORTING; CERTAIN PLANS.] In lieu 112.7 of requirements in subdivision 3, the applicable administration 112.8 for the individual retirement account plans under chapters 354B 112.9 and 354D and for the University of Minnesota faculty retirement 112.10 plan shall submit computed time-weighted rates of return to the 112.11 office of the state auditor. These time-weighted rates of 112.12 return must cover the most recent complete calendar year, and 112.13 must be computed separately for each investment option available 112.14 to plan members. To the extent feasible, the returns must be 112.15 computed net of all investment costs, fees, and charges, so that 112.16 the computed return reflects the net time-weighted return 112.17 available to the investor. If this is not practical, the 112.18 existence of any remaining investment cost, fee, or charge which 112.19 could further lower the net return must be disclosed. The 112.20 procedures used to compute the returns must be consistent with 112.21 bank administration institute studies of investment performance 112.22 measurement and association of investment management and 112.23 research presentation standards, or, if applicable, securities 112.24 exchange commission requirements. The individual who computes 112.25 the returns must certify that the supplied returns comply with 112.26 this subdivision. The applicable plan administrator must also 112.27 submit, with the return information, the total amounts invested 112.28 by the plan members, in aggregate, in each investment option as 112.29 of the last day of the calendar year. 112.30 Subd. 5. [PENALTY FOR NONCOMPLIANCE.] Failure to comply 112.31 with the reporting requirements of this sectionshallmust 112.32 result in a withholding of all state aid or state appropriation 112.33 to which the pension plan may otherwise be directly or 112.34 indirectly entitled until the pension plan has complied with the 112.35 reporting requirements. The state auditor shall instruct the 112.36 commissioners of revenue and finance to withhold any state aid 113.1 or state appropriation from any pension plan that fails to 113.2 comply with the reporting requirements contained in this 113.3 section, until the pension plan has complied with the reporting 113.4 requirements. The state auditor may waive the withholding of 113.5 state aid or state appropriations if the state auditor 113.6 determines in writing that compliance would create an excessive 113.7 hardship for the pension plan. 113.8 Subd. 6. [INVESTMENT DISCLOSURE REPORT.] (a) The state 113.9 auditor shall prepare an annual report to the legislature on the 113.10 investment performance of the various public pension plans 113.11 subject to this section. The content of the report is specified 113.12 in paragraphs (b) to (e). 113.13 (b) For each public pension plan reporting under 113.14 subdivision 3, paragraph (b), the state auditor shall compute 113.15 and report total portfolio and asset class time-weighted rates 113.16 of return, net of all investment-related costs and fees. 113.17 (c) For each public pension plan reporting under 113.18 subdivision 3, paragraph (d), the state auditor shall compute 113.19 and report total portfolio time-weighted rates of return, net of 113.20 all costs and fees. If the state auditor has requested data for 113.21 a plan under subdivision 3, paragraph (f), the state auditor may 113.22 also compute and report asset class time-weighted rates of 113.23 return, net of all costs and fees. 113.24 (d) The report by the state auditor must include the 113.25 information submitted by the pension plans under subdivision 3, 113.26 paragraph (c), or a synopsis of that information. 113.27 (e) The report by the state auditor may also include a 113.28 presentation of multiyear performance, information collected 113.29 under subdivision 4, and any other information or analysis 113.30 deemed appropriate by the state auditor. 113.31 Subd. 7. [EXPENSE OF REPORT.] All administrative expenses 113.32 incurred relating to the investment report by the state auditor 113.33 described in subdivision 6 must be borne by the office of the 113.34 state auditor and may not be charged back to the entities 113.35 described in subdivisions 1 or 4. 113.36 Subd. 8. [TIMING OF REPORTS.] (a) For salaried firefighter 114.1 relief associations, police relief associations, and volunteer 114.2 firefighter relief associations, the information required under 114.3 this section must be submitted by the due date for reports 114.4 required under section 69.051, subdivision 1 or 1a, as 114.5 applicable. If a relief association satisfies the definition of 114.6 a fully invested plan under subdivision 1, paragraph (b), for 114.7 the calendar year covered by the report required under section 114.8 69.051, subdivision 1 or 1a, as applicable, the chief 114.9 administrative officer of the covered pension plan shall certify 114.10 that compliance on a form prescribed by the state auditor. The 114.11 state auditor shall transmit annually to the state board of 114.12 investment a list or lists of covered pension plans which 114.13 submitted certifications,in order to facilitate reporting by 114.14 the state board of investment under paragraph (c) of this 114.15 subdivision. 114.16 (b) For the Minneapolis teachers retirement fund 114.17 association, the St. Paul teachers retirement fund association, 114.18 the Duluth teachers retirement fund association, the Minneapolis 114.19 employees retirement fund, the University of Minnesota faculty 114.20 supplemental retirement plan, and the applicable administrators 114.21 for the University of Minnesota faculty retirement plan and the 114.22 individual retirement account plans under chapters 354B and 114.23 354D, the information required under this section must be 114.24 submitted to the state auditor by June 1 of each year. 114.25 (c) The state board of investment, on behalf of pension 114.26 funds specified in subdivision 1, paragraph (c), must report 114.27 information required under this section by September 1 of each 114.28 year. 114.29 Sec. 11. Minnesota Statutes 2000, section 356.22, is 114.30 amended to read: 114.31 356.22 [INTERPRETATION.] 114.32 Subdivision 1. [PROVISION OF ADDITIONAL VALUATIONS.] No 114.33 provision in sections 356.20 to 356.23shallmay be construedto114.34 in any way to limit any of the enumerated pension and retirement 114.35 funds from furnishing additional actuarial valuations or 114.36 experience studies, or additional data and actuarial 115.1 calculations, as may be requested by the legislature or any 115.2 standing committee or by the legislative commission on pensions 115.3 and retirement. 115.4 Subd. 2. [ACCELERATED AMORTIZATION.] No provision in 115.5 sections 356.20 to 356.23shallmay be construed to preclude any 115.6 public pension and retirement fund enumerated in section 356.20, 115.7 subdivision 2, from requesting, or the legislature from 115.8 providing for, the amortization of any unfunded actuarial 115.9 accrued liability in a shorter period of time than by the 115.10 established date for full funding as determinedpursuant to115.11 under section 356.215, subdivision4g11. 115.12 Subd. 3. [ADDITIONAL REQUIRED VALUATIONS.] The legislature 115.13 or any committee or commissionthereof now in existence or115.14hereafter createdwhich has assigned to it the subject of public 115.15 pensions or public retirement plans may require actuarial 115.16 valuations and experience studies in conformity with the 115.17 provisions of sections 356.20 to 356.23 from any public pension 115.18 and retirement plan or fund, whether enumerated in sections 115.19 356.20 to 356.23 or otherwise. 115.20 Sec. 12. Minnesota Statutes 2000, section 356.23, is 115.21 amended to read: 115.22 356.23 [SUPPLEMENTAL VALUATIONS; ALTERNATIVE REPORTS AND 115.23 VALUATIONS.] 115.24 Subdivision 1. [SUPPLEMENTAL ACTUARIAL VALUATIONS.] Any 115.25 supplemental actuarial valuations prepared on behalf of any 115.26 governing or managing board of any pension and retirement fund 115.27 enumerated in section 356.20, subdivision 2, by an approved 115.28 actuary,shallmust be prepared in accordance with the 115.29 applicable provisions of sections 356.20 to 356.23 and with the 115.30 standards adopted by the legislative commission on pensions and 115.31 retirement. Any pension and retirement fund which prepares an 115.32 alternative actuarial valuation under subdivision 2shallalso 115.33 must have a supplemental actuarial valuation prepared. 115.34 Subd. 2. [ALTERNATIVE REPORTS AND VALUATIONS.] In addition 115.35 to the financial reports and actuarial valuations required by 115.36 sections 356.20 to 356.23, the governing or managing board of 116.1 any fund concerned may submit alternative reports and actuarial 116.2 valuations for distribution to the legislature, any of its 116.3 committees, or the legislative commission on pensions and 116.4 retirement on a different basis or on different assumptions than 116.5 are specified in sections 356.20 to 356.23. The assumptions and 116.6 basis of any alternative reports and valuationsshallmust be 116.7 clearly stated in the document. 116.8 LIMITATIONS ON SUPPLEMENTAL AND 116.9 LOCAL RETIREMENT PLANS 116.10 Sec. 13. Minnesota Statutes 2001 Supplement, section 116.11 356.24, subdivision 1, is amended to read: 116.12 Subdivision 1. [RESTRICTION; EXCEPTIONS.] It is unlawful 116.13 for a school district or other governmental subdivision or state 116.14 agency to levy taxes for, or to contribute public funds to a 116.15 supplemental pension or deferred compensation plan that is 116.16 established, maintained, and operated in addition to a primary 116.17 pension program for the benefit of the governmental subdivision 116.18 employees other than: 116.19 (1) to a supplemental pension plan that was established, 116.20 maintained, and operated before May 6, 1971; 116.21 (2) to a plan that provides solely for group health, 116.22 hospital, disability, or death benefits; 116.23 (3) to the individual retirement account plan established 116.24 by chapter 354B; 116.25 (4) to a plan that provides solely for severance pay under 116.26 section 465.72 to a retiring or terminating employee; 116.27 (5) for employees other than personnel employed by the 116.28 board of trustees of the Minnesota state colleges and 116.29 universities and covered under the higher education supplemental 116.30 retirement plan under chapter 354C, if the supplemental plan 116.31 coverage is provided for in a personnel policy of the public 116.32 employer or in the collective bargaining agreement between the 116.33 public employer and the exclusive representative of public 116.34 employees in an appropriate unit, in an amount matching employee 116.35 contributions on a dollar for dollar basis, but not to exceed an 116.36 employer contribution of $2,000 a year per employee; 117.1 (i) to the state of Minnesota deferred compensation plan 117.2 under section 352.96; or 117.3 (ii) in payment of the applicable portion of the 117.4 contribution made to any investment eligible under section 117.5 403(b) of the Internal Revenue Code, if the employing unit has 117.6 complied with any applicable pension plan provisions of the 117.7 Internal Revenue Code with respect to the tax-sheltered annuity 117.8 program during the preceding calendar year; 117.9 (6) for personnel employed by the board of trustees of the 117.10 Minnesota state colleges and universities and not covered by 117.11 clause (5), to the supplemental retirement plan under chapter 117.12 354C, if the supplemental plan coverage is provided for in a 117.13 personnel policy or in the collective bargaining agreement of 117.14 the public employer with the exclusive representative of the 117.15 covered employees in an appropriate unit, in an amount matching 117.16 employee contributions on a dollar for dollar basis, but not to 117.17 exceed an employer contribution of $2,700 a year for each 117.18 employee; 117.19 (7) to a supplemental plan or to a governmental trust to 117.20 save for postretirement health care expenses qualified for 117.21 tax-preferred treatment under the Internal Revenue Code, if the 117.22 supplemental plan coverage is provided for in a personnel policy 117.23 or in the collective bargaining agreement of a public employer 117.24 with the exclusive representative of the covered employees in an 117.25 appropriate unit;or117.26 (8) to the laborer's national industrial pension fund for 117.27 the employees of a governmental subdivision who are covered by a 117.28 collective bargaining agreement that provides for coverage by 117.29 that fund and that sets forth a fund contribution rate, but not 117.30 to exceed an employer contribution of $2,000 per year per 117.31 employee; 117.32 (9) to the plumbers' and pipefitters' national pension fund 117.33 for the employees of a governmental subdivision who are covered 117.34 by a collective bargaining agreement that provides for coverage 117.35 by that fund and that sets forth a fund contribution rate, but 117.36 not to exceed an employer contribution of $2,000 per year per 118.1 employee; 118.2 (10) to the international union of operating engineers 118.3 pension fund for the employees of a governmental subdivision who 118.4 are covered by a collective bargaining agreement that provides 118.5 for coverage by that fund and that sets forth a fund 118.6 contribution rate, but not to exceed an employer contribution of 118.7 $2,000 per year per employee; or 118.8 (11) to a supplemental plan organized and operated under 118.9 the federal Internal Revenue Code, as amended, that is wholly 118.10 and solely funded by the employee's accumulated sick leave, 118.11 accumulated vacation leave, and accumulated severance pay. 118.12 Sec. 14. Minnesota Statutes 2000, section 356.24, 118.13 subdivision 1b, is amended to read: 118.14 Subd. 1b. [VENDOR RESTRICTIONS.] A personnel policy for 118.15 unrepresented employeesor, a collective bargaining agreement 118.16 for represented employees, or a school board for school district 118.17 employees may establish limits on the number of vendors of plans 118.18 covered by the exceptions set forth in subdivision 1 that it 118.19 will utilize and conditions under whichthethose vendors may 118.20 contact employees both during working hours and after working 118.21 hours. 118.22 Sec. 15. Minnesota Statutes 2000, section 356.24, 118.23 subdivision 1c, is amended to read: 118.24 Subd. 1c. [STATE BOARD OF INVESTMENT REVIEW.] (a) Any 118.25 insurance company, mutual fund company, or similar company 118.26 providing investments eligible under section 403(b) of the 118.27 Internal Revenue Code and eligible to receive employer 118.28 contributions under this section may request the state board of 118.29 investment, in conjunction with the department of commerce, to 118.30 review the financial standing of the company, the 118.31 competitiveness of its investment options and returns, and the 118.32 level of all charges and fees impacting those returns. 118.33 (b) The state board of investment may establish a fee for 118.34 each review. The state board of investment must maintain and 118.35 have available a list of all reviewed companies. 118.36 (c) In reviewing companies under this section, the state 119.1 board of investment must not be considered to be acting as a 119.2 fiduciary or to be engaged in a fiduciary activity under chapter 119.3 356A or common law. 119.4 Sec. 16. Minnesota Statutes 2000, section 356.24, 119.5 subdivision 2, is amended to read: 119.6 Subd. 2. [LIMIT ON CERTAIN CONTRIBUTIONS OR BENEFIT 119.7 CHANGES.] No change in benefits or employer contributions in a 119.8 supplemental pension plan to which this section applies that 119.9 occurs after May 6, 1971, is effective without prior legislative 119.10 authorization. 119.11 Sec. 17. Minnesota Statutes 2000, section 356.245, is 119.12 amended to read: 119.13 356.245 [LOCAL ELECTED OFFICIALS.] 119.14 An elected official who is covered by section 353.01, 119.15 subdivision 2a, is eligible to participate in the state of 119.16 Minnesota deferred compensation plan under section 356.24.A119.17 The applicable local governmental unit may make the matching 119.18 employer contributions authorized by that section on the part of 119.19 a participating elected official. 119.20 Sec. 18. Minnesota Statutes 2000, section 356.25, is 119.21 amended to read: 119.22 356.25 [LOCAL GOVERNMENTAL PENSION FUND PROHIBITIONS; 119.23 EXCLUSIONS.] 119.24 Notwithstanding any other provision of law or charter to 119.25 the contrary, no city, county, public agency or instrumentality, 119.26 or other political subdivisionshall, after August 1, 1975,is 119.27 required or permitted to establish for any of its employeesany119.28 a local pension plan or fund financed in whole or in part from 119.29 public funds, other than a volunteer firefighter's relief 119.30 association that is establishedpursuant tounder chapter 424A 119.31 and is governed by sections 69.771 to 69.776. 119.32 PUBLIC RETIREMENT PLAN PORTABILITY MECHANISMS 119.33 Sec. 19. Minnesota Statutes 2000, section 356.30, is 119.34 amended to read: 119.35 356.30 [COMBINED SERVICE ANNUITY.] 119.36 Subdivision 1. [ELIGIBILITY; COMPUTATION OF ANNUITY.] (a) 120.1 Notwithstanding any provisions of the laws governing the 120.2 retirement plans enumerated in subdivision 3, a person who has 120.3 met the qualifications of paragraph (b) may elect to receive a 120.4 retirement annuity from each enumerated retirement plan in which 120.5 the person has at least one-half year of allowable service, 120.6 based on the allowable service in each plan, subject to the 120.7 provisions of paragraph (c). 120.8 (b) A person may receive, upon retirement, a retirement 120.9 annuity from each enumerated retirement plan in which the person 120.10 has at least one-half year of allowable service, and 120.11 augmentation of a deferred annuity calculated under the laws 120.12 governing each public pension plan or fund named in subdivision 120.13 3, from the date the person terminated all public service if: 120.14 (1) the person has allowable service totaling an amount 120.15 that allows the person to receive an annuity in any two or more 120.16 of the enumerated plans; and 120.17 (2) the person has not begun to receive an annuity from any 120.18 enumerated plan or the person has made application for benefits 120.19 from each applicable plan and the effective dates of the 120.20 retirement annuity with each plan under which the person chooses 120.21 to receive an annuity are within a one-year period. 120.22 (c) The retirement annuity from each plan must be based 120.23 upon the allowable service, accrual rates, and average salary in 120.24 the applicable plan except as further specified or modified in 120.25 the following clauses: 120.26 (1) the laws governing annuities must be the law in effect 120.27 on the date of termination from the last period of public 120.28 service under a covered retirement plan with which the person 120.29 earned a minimum of one-half year of allowable service credit 120.30 during that employment; 120.31 (2) the "average salary" on which the annuity from each 120.32 covered plan in which the employee has credit in a formula plan 120.33shallmust be based on the employee's highest five successive 120.34 years of covered salary during the entire service in covered 120.35 plans; 120.36 (3) the accrual rates to be used by each plan must be those 121.1 percentages prescribed by each plan's formula as continued for 121.2 the respective years of allowable service from one plan to the 121.3 next, recognizing all previous allowable service with the other 121.4 covered plans; 121.5 (4) the allowable service in all the plans must be combined 121.6 in determining eligibility for and the application of each 121.7 plan's provisions in respect to reduction in the annuity amount 121.8 for retirement prior to normal retirement age; and 121.9 (5) the annuity amount payable for any allowable service 121.10 under a nonformula plan of a covered plan must not be affected, 121.11 but such service and covered salary must be used in the above 121.12 calculation. 121.13 (d) This section does not apply to any person whose final 121.14 termination from the last public service under a covered planis121.15prior towas before May 1, 1975. 121.16 (e) For the purpose of computing annuities under this 121.17 section, the accrual rates used by any covered plan, except the 121.18 public employees police and fire plan, the judges' retirement 121.19 fund, and the state patrol retirement plan, must not exceed the 121.20 percent specified in section356.19356.315, subdivision 4, per 121.21 year of service for any year of service or fraction thereof. 121.22 The formula percentage used by the judges' retirement fund must 121.23 not exceed thepercentpercentage rate specified in section 121.24356.19356.315, subdivision 8, per year of service for any year 121.25 of service or fraction thereof. The accrual rate used by the 121.26 public employees police and fire plan and the state patrol 121.27 retirement plan must not exceed thepercentpercentage rate 121.28 specified in section356.19356.315, subdivision 6, per year of 121.29 service for any year of service or fraction thereof. The 121.30 accrual rate or rates used by the legislators retirement plan 121.31 and the elective state officers retirement plan must not exceed 121.32 2.5 percent, but this limit does not apply to the adjustment 121.33 provided under section 3A.02, subdivision 1, paragraph (c), or 121.34 352C.031, paragraph (b). 121.35 (f) Any period of time for which a person has credit in 121.36 more than one of the covered plans must be used only once for 122.1 the purpose of determining total allowable service. 122.2 (g) If the period of duplicated service credit is more than 122.3 one-half year, or the person has credit for more than one-half 122.4 year, with each of the plans, each plan must apply its formula 122.5 to a prorated service credit for the period of duplicated 122.6 service based on a fraction of the salary on which deductions 122.7 were paid to that fund for the period divided by the total 122.8 salary on which deductions were paid to all plans for the period. 122.9 (h) If the period of duplicated service credit is less than 122.10 one-half year, or when added to other service credit with that 122.11 plan is less than one-half year, the service credit must be 122.12 ignored and a refund of contributions made to the person in 122.13 accord with that plan's refund provisions. 122.14 Subd. 2. [REPAYMENT OF REFUNDS.] A person who has service 122.15 credit in one of thefundsretirement plans enumerated in 122.16 subdivision 3 and who is employed or was formerly employed in a 122.17 position covered by one of thesefundscovered plans but also 122.18 has received a refund from any other of thesefundscovered 122.19 plans, may repay the refund to the respectivefundplan under 122.20 terms and conditions that are consistent with the laws governing 122.21 the otherfundplan, except that the person need not be a 122.22 currently contributing member of thefundplan to which the 122.23 refund is repaid at the time the repayment is made. Unless 122.24 otherwise provided by statute, the repayment of a refund under 122.25 this subdivision may only be made within six months following 122.26 termination of employment from a position covered by one of the 122.27fundscovered plans enumerated in subdivision 3 or before the 122.28 date of retirement from thefundplan to which the refund is 122.29 repaid, whichever is earlier. 122.30 Subd. 2a. [PURCHASES OF PRIOR SERVICE.] If a purchase of 122.31 prior service is made under the provisions of Laws 1988, chapter 122.32 709, article 3, or any similar special or general law provision 122.33 which allows a purchase of service credit in any of thefunds122.34 retirement plans enumerated in subdivision 3, the amount of 122.35 required reserves calculated as prescribed in Laws 1988, chapter 122.36 709, article 3, must be paid to eachfundplan based on the 123.1 amount of benefit increase payable from thatfundplan as a 123.2 result of the purchase of prior service. 123.3 Subd. 3. [COVEREDFUNDSPLANS.] This section applies to 123.4 the following retirementfundsplans: 123.5 (1) the general state employees retirementfundplan of the 123.6 Minnesota state retirement system, establishedpursuant tounder 123.7 chapter 352; 123.8 (2) the correctional state employees retirementprogram123.9 plan of the Minnesota state retirement system, 123.10 establishedpursuant tounder chapter 352; 123.11 (3) the unclassified employees retirementplanprogram, 123.12 establishedpursuant tounder chapter 352D; 123.13 (4) the state patrol retirementfundplan, established 123.14pursuant tounder chapter 352B; 123.15 (5) the legislators retirement plan, establishedpursuant123.16tounder chapter 3A; 123.17 (6) the elective state officers' retirement plan, 123.18 establishedpursuant tounder chapter 352C; 123.19 (7) the general employees retirement plan of the public 123.20 employees retirement association, establishedpursuant tounder 123.21 chapter 353; 123.22 (8) the public employees police and firefundretirement 123.23 plan of the public employees retirement association, established 123.24pursuant tounder chapter 353; 123.25 (9)public employeesthe local government correctional 123.26 service retirement plan of the public employees retirement 123.27 association, establishedpursuant tounder chapter 353E; 123.28 (10) the teachers retirement association, established 123.29pursuant tounder chapter 354; 123.30 (11) the Minneapolis employees retirement fund, established 123.31pursuant tounder chapter 422A; 123.32 (12) the Minneapolis teachers retirement fund association, 123.33 establishedpursuant tounder chapter 354A; 123.34 (13) the St. Paul teachers retirement fund association, 123.35 establishedpursuant tounder chapter 354A; 123.36 (14) the Duluth teachers retirement fund association, 124.1 establishedpursuant tounder chapter 354A; and 124.2 (15) the judges' retirement fund, established by sections 124.3 490.121 to 490.132. 124.4 Sec. 20. Minnesota Statutes 2000, section 356.302, is 124.5 amended to read: 124.6 356.302 [DISABILITY BENEFIT WITH COMBINED SERVICE.] 124.7 Subdivision 1. [DEFINITIONS.] (a) The terms used in this 124.8 section are defined in this subdivision. 124.9 (b) "Average salary" means the highest average of covered 124.10 salary for the appropriate period of credited service that is 124.11 required for the calculation of a disability benefit by the 124.12 covered retirement plan and that is drawn from any period of 124.13 credited service and successive years of covered salary in a 124.14 covered retirement plan. 124.15 (c) "Covered retirement plan" or "plan" means a retirement 124.16 plan listed in subdivision 7. 124.17 (d) "Duty-related" means a disabling illness or injury that 124.18 occurred while the person was actively engaged in employment 124.19 duties or that arose out of the person's active employment 124.20 duties. 124.21 (e) "General employee retirement plan" means a covered 124.22 retirement plan listed in subdivision 7, clauses (1) to (8) and 124.23 (13). 124.24 (f) "Occupationally disabled" means the condition of having 124.25 a medically determinable physical or mental impairment that 124.26 makes a person unable to satisfactorily perform the minimum 124.27 requirements of the person's employment position or a 124.28 substantially similar employment position. 124.29 (g) "Public safety employee retirement plan" means a 124.30 covered retirement plan listed in subdivision 7, clauses (9) to 124.31(11)(12). 124.32 (h) "Totally and permanently disabled" means the condition 124.33 of having a medically determinable physical or mental impairment 124.34 that makes a person unable to engage in any substantial gainful 124.35 activity and that is expected to continue or has continued for a 124.36 period of at least one year or that is expected to result 125.1 directly in the person's death. 125.2 Subd. 2. [ENTITLEMENT.] Notwithstanding any provision of 125.3 law to the contrary governing any covered retirement plan, a 125.4 member of a covered retirement plan may receive a combined 125.5 service disability benefit from each covered retirement plan in 125.6 which the person has credit for at least one-half year of 125.7 allowable service if that person meets the applicable qualifying 125.8 conditions. Subdivision 3 applies to a member of a general 125.9 employee retirement plan. Subdivision 4 applies to a member of 125.10 a public safety employee retirement plan. Subdivision 5 applies 125.11 to a member of a covered retirement plan with both general 125.12 employee and public safety employee retirement plan service. 125.13 Subd. 3. [GENERAL EMPLOYEE PLAN ELIGIBILITY REQUIREMENTS.] 125.14 A disabled member of a covered retirement plan who has credit 125.15 for allowable service in a combination of general employee 125.16 retirement plans is entitled to a combined service disability 125.17 benefit if the member: 125.18 (1) is less than 65 years of age on the date of the 125.19 application for the disability benefit; 125.20 (2) has become totally and permanently disabled; 125.21 (3) has credit for allowable service in any combination of 125.22 general employee retirement plans totaling at least three years; 125.23 (4) has credit for at least one-half year of allowable 125.24 service with the current general employee retirement plan before 125.25 the commencement of the disability; 125.26 (5) has at least three continuous years of allowable 125.27 service credit by the general employee retirement plan or has at 125.28 least a total of three years of allowable service credit by a 125.29 combination of general employee retirement plans in a 72-month 125.30 period during which no interruption of allowable service credit 125.31 from a termination of employment exceeded 29 days; and 125.32 (6)iswas not receiving a retirement annuity or disability 125.33 benefit from any covered general employee retirement plan at the 125.34 time of the commencement of the disability. 125.35 Subd. 4. [PUBLIC SAFETY PLAN ELIGIBILITY REQUIREMENTS.] A 125.36 disabled member of a covered retirement plan who has credit for 126.1 allowable service in a combination of public safety employee 126.2 retirement plans is entitled to a combined service disability 126.3 benefit if the member: 126.4 (1) has become occupationally disabled; 126.5 (2) has credit for allowable service in any combination of 126.6 public safety employee retirement plans totaling at least one 126.7 year if the disability is duty-related or totaling at least 126.8 three years if the disability is not duty-related; 126.9 (3) has credit for at least one-half year of allowable 126.10 service with the current public safety employee retirement plan 126.11 before the commencement of the disability; and 126.12 (4)iswas not receiving a retirement annuity or disability 126.13 benefit from any covered public safety employee retirement plan 126.14 at the time of the commencement of the disability. 126.15 Subd. 5. [GENERAL AND PUBLIC SAFETY PLAN ELIGIBILITY 126.16 REQUIREMENTS.] A disabled member of a covered retirement plan 126.17 who has credit for allowable service in a combination of both a 126.18 public safety employee retirementplansplan and general 126.19 employee retirementplansplan must meet the qualifying 126.20 requirements in subdivisions 3 and 4 to receive a combined 126.21 service disability benefit from the applicable general employee 126.22 and public safety employee retirement plans, except that the 126.23 person need only be a member of a covered retirement plan at the 126.24 time of the commencement of the disability and that the minimum 126.25 allowable service requirements of subdivisions 3, clauses (3) 126.26 and (5), and 4, clauses (3) and (4), may be met in any 126.27 combination of covered retirement plans. 126.28 Subd. 6. [COMBINED SERVICE DISABILITY BENEFIT 126.29 COMPUTATION.] (a) The combined service disability benefit from 126.30 each covered retirement plan must be based on the allowable 126.31 service in each retirement plan, except as specified in 126.32 paragraphs (b) to (f). 126.33 (b) The disability benefit must be governed by the law in 126.34 effect for each covered retirement plan on the date of the 126.35 commencement of the member's most recent qualifying disability 126.36 as a member of a covered retirement plan. 127.1 (c) All plans must base the disability benefit on the same 127.2 average salary figure to the extent practicable. 127.3 (d) If the method of the covered retirement plan used to 127.4 compute a disability benefit varies based on the length of 127.5 allowable service credit, the benefit accrual formula 127.6 percentages used by the plan must recognize the allowable 127.7 service credit in the plan as a continuation of any previous 127.8 allowable service credit with other covered retirement plans. 127.9 (e) If the covered retirement plan is a defined benefit or 127.10 formula plan and the method used to compute a disability benefit 127.11 does not vary based on the length of allowable service credit, 127.12 the portion of the specified benefit amount from the plan must 127.13 bear the same proportion to the total specified benefit amount 127.14 as the allowable service credit in that plan bears to the total 127.15 allowable service credit in all covered retirement plans. If 127.16 the covered retirement plan is a defined contribution or 127.17 nonformula plan, the disability benefit amount for allowable 127.18 service under the plan is not affected, but the service and the 127.19 covered salary under the plan must be used as applicable in 127.20 calculations by other covered retirement plans. 127.21 (f) A period for which a person has allowable service 127.22 credit in more than one covered retirement plan must be used 127.23 only once in determining the total allowable service credit for 127.24 calculating the combined service disability benefit, with any 127.25 period of duplicated service credit handledunderas provided in 127.26 section 356.30, subdivision 1,clause (3), items (i) and127.27(j)paragraphs (g) and (h). 127.28 (g) If a person is entitled to a minimum benefit payable 127.29 from one of the public pension plansnamedenumerated in section 127.30 356.30, subdivision 3, the person may receive additional credit 127.31 for only those years of service in another covered pension plan 127.32 that, when added to the years of service in the pension plan 127.33 that is paying the minimum benefit, exceed the years of service 127.34 on which the minimum benefit is based. 127.35 (h) A partially employed recipient of a disability benefit 127.36 must have any current reemployment income plus the total 128.1 disabilitypaymentpayments from all planslistedenumerated in 128.2 subdivision 7 added together, and then compared to their final 128.3 salary rate as a public employee. If current income plus the 128.4 total disability payments exceed the final salary of the person 128.5 at the time of retirement, then disability benefit payments from 128.6 all the planswillmust be reduced on a prorated basis relative 128.7 to the years of service in each fund so that earnings plus 128.8 benefit payments do not exceedtheirthe final salary rate. 128.9 Subd. 7. [COVERED RETIREMENT PLANS.] This section applies 128.10 to the following retirement plans: 128.11 (1) the general state employees retirementfundplan of the 128.12 Minnesota state retirement system, established by chapter 352; 128.13 (2) the unclassified state employees retirementplan128.14 program of the Minnesota state retirement system, established by 128.15 chapter 352D; 128.16 (3) the general employees retirement plan of the public 128.17 employees retirement association, established by chapter 353; 128.18 (4) the teachers retirement association, established by 128.19 chapter 354; 128.20 (5) the Duluth teachers retirement fund association, 128.21 established by chapter 354A; 128.22 (6) the Minneapolis teachers retirement fund association, 128.23 established by chapter 354A; 128.24 (7) the St. Paul teachers retirement fund association, 128.25 established by chapter 354A; 128.26 (8) the Minneapolis employees retirement fund, established 128.27 by chapter 422A; 128.28 (9) the state correctional employees retirement plan of the 128.29 Minnesota state retirement system, established by chapter 352; 128.30 (10) the state patrol retirementfundplan, established by 128.31 chapter 352B; 128.32 (11) the public employees police and firefundplan of the 128.33 public employees retirement association, established by chapter 128.34 353; 128.35 (12)public employeesthe local government correctional 128.36 service retirement plan of the public employees retirement 129.1 association, established by chapter 353E; and 129.2 (13) the judges' retirementfundplan, established by 129.3 sections 490.121 to 490.132. 129.4 Sec. 21. Minnesota Statutes 2000, section 356.303, is 129.5 amended to read: 129.6 356.303 [SURVIVOR BENEFIT WITH COMBINED SERVICE.] 129.7 Subdivision 1. [DEFINITIONS.] (a) The terms used in this 129.8 section are defined in this subdivision. 129.9 (b) "Average salary" means the highest average of covered 129.10 salary for the appropriate period of credited service that is 129.11 required for the calculation of a survivor annuity or a survivor 129.12 benefit, whichever applies, by the covered retirement plan and 129.13 that is drawn from any period of credited service and covered 129.14 salary in a covered retirement plan. 129.15 (c) "Covered retirement plan" or "plan" means a retirement 129.16 planlistedenumerated in subdivision 4. 129.17 (d) "Deceased member" means a person who on the date of 129.18 death was an active member of a covered retirement plan and who 129.19 has reached the minimum age, if any, that is required by the 129.20 covered retirement plan as part of qualifying for a survivor 129.21 annuity or survivor benefit. 129.22 (e) "Surviving child" means a child of a deceased member 129.23 (1) who is unmarried,; (2) who has not reached age 18, or, if a 129.24 full-time student, who has not reached a higher age as specified 129.25inby the applicable covered retirement plan,; and (3) if 129.26 specified by that plan, who was actually dependent on the 129.27 deceased member for a specified proportion of support before the 129.28 deceased member's death. "Surviving child" includes a natural 129.29 child, an adopted child, or a child of a deceased member who is 129.30 conceived during the member's lifetime and who is born after the 129.31 member's death. 129.32 (f) "Surviving spouse" means the legally married husband or 129.33 wife, whichever applies, of the deceased member who was residing 129.34 with the deceased member on the date of death and who, if 129.35 specified by the applicable covered retirement plan, had been 129.36 married to the deceased member for a specified period of time 130.1 before the death of the deceased member. 130.2 (g) "Survivor annuity" means the entitlement to a future 130.3 amount payable to a survivor as the remainder interest of an 130.4 optional annuity form implied by law as having been chosen by a 130.5 deceased member before the date of death and effective on the 130.6 date of death or provided automatically. 130.7 (h) "Survivor benefit" means an entitlement to a future 130.8 amount payable to a survivor that is not included in the 130.9 definition of a survivor annuity. 130.10 Subd. 2. [ENTITLEMENT; ELIGIBILITY.] Notwithstanding 130.11 any provision of law to the contrary governing a covered 130.12 retirement plan, a person who is the survivor of a deceased 130.13 member of a covered retirement plan may receive a combined 130.14 service survivor benefit from each covered retirement plan in 130.15 which the deceased member had credit for at least one-half year 130.16 of allowable service if the deceased member: 130.17 (1) had credit for sufficient allowable service in any 130.18 combination of covered retirement plans to meet any minimum 130.19 allowable service credit requirement of the covered retirement 130.20 fund for qualification for a survivor benefit or annuity; 130.21 (2) had credit for at least one-half year of allowable 130.22 service with the most recent covered retirement plan before the 130.23 date of death and was an active member of that covered 130.24 retirement plan on the date of death; and 130.25 (3) was not receiving a retirement annuity from any covered 130.26 retirement plan on the date of death. 130.27 Subd. 3. [COMBINED SERVICE SURVIVOR BENEFIT COMPUTATION.] 130.28 (a) The combined service survivor annuity or survivor benefit 130.29 from each covered retirement plan must be based on the allowable 130.30 service in each covered retirement plan, except as provided by 130.31 paragraphs (b) to (f). 130.32 (b) The survivor annuity or survivor benefit must be 130.33 governed by the law in effect for each covered retirement plan 130.34 on the date of the death of the deceased member. 130.35 (c) All plans must base the survivor annuity or survivor 130.36 benefit on the same average salary figure if the annuity or 131.1 benefit is salary related. 131.2 (d) If the method of the covered retirement plan used to 131.3 compute a survivor benefit or annuity varies based on the length 131.4 of allowable service credit, the benefit accrual formula 131.5 percentages used by the plan must recognize the allowable 131.6 service credit in the plan as a continuation of any previous 131.7 allowable service credit with other covered retirement plans. 131.8 (e) If the covered retirement plan is a defined benefit or 131.9 formula plan and the method used to compute a survivor benefit 131.10 or annuity does not vary based on the length of allowable 131.11 service credit, the portion of the specified benefit or annuity 131.12 amount from the covered retirement plan must bear the same 131.13 proportion to the total specified benefit or annuity amount as 131.14 the allowable service credit in that plan bears to the total 131.15 allowable service credit in all covered retirement plans. If 131.16 the covered retirement plan is a defined contribution or 131.17 nonformula plan, the survivor benefit amount for allowable 131.18 service under the plan is not affected, but the service and 131.19 covered salary under the plan must be used in calculations by 131.20 other covered retirement plans. 131.21 (f) A period for which aperson hasdeceased member had 131.22 allowable service credit in more than one covered retirement 131.23 plan must be used only once in determining the total allowable 131.24 service credit for calculating the combined service survivor 131.25 annuity or survivor benefit. A period of duplicated service 131.26 credit must be handled as provided in section 356.30, 131.27 subdivision 1,clause (3), items (i) and (j)paragraphs (g) and 131.28 (h). 131.29 (g) If a person is entitled to a minimum benefit payable 131.30 from a public pension plan named in section 356.30, subdivision 131.31 3, the person may receive additional credit for only those years 131.32 of service in another covered pension plan that, when added to 131.33 the years of service in the pension plan that is paying the 131.34 minimum benefit, exceed the years of service on which the 131.35 minimum benefit is based. 131.36 Subd. 4. [COVERED RETIREMENT PLANS.] This section applies 132.1 to the following retirement plans: 132.2 (1) the legislators retirement plan, established by chapter 132.3 3A; 132.4 (2) the general state employees retirementfundplan of the 132.5 Minnesota state retirement system, established by chapter 352; 132.6 (3) the correctional state employees retirement plan of the 132.7 Minnesota state retirement system, established by chapter 352; 132.8 (4) the state patrol retirementfundplan, established by 132.9 chapter 352B; 132.10 (5) the elective state officers retirement plan, 132.11 established by chapter 352C; 132.12 (6) the unclassified state employees retirementplan132.13 program, established by chapter 352D; 132.14 (7) the general employees retirement plan of the public 132.15 employees retirement association, established by chapter 353; 132.16 (8) the public employees police and firefundplan of the 132.17 public employees retirement association, established by chapter 132.18 353; 132.19 (9)public employeesthe local government correctional 132.20 service retirement plan of the public employees retirement 132.21 association, established by chapter 353E; 132.22 (10) the teachers retirement association, established by 132.23 chapter 354; 132.24 (11) the Duluth teachers retirement fund association, 132.25 established by chapter 354A; 132.26 (12) the Minneapolis teachers retirement fund association, 132.27 established by chapter 354A; 132.28 (13) the St. Paul teachers retirement fund association, 132.29 established by chapter 354A; 132.30 (14) the Minneapolis employees retirement fund, established 132.31 by chapter 422A; and 132.32 (15) the judges' retirement fund, established by sections 132.33 490.121 to 490.132. 132.34 RETIREMENT ANNUITIES 132.35 Sec. 22. [356.315] [RETIREMENT BENEFIT FORMULA 132.36 PERCENTAGES.] 133.1 Subdivision 1. [COORDINATED PLAN MEMBERS.] The applicable 133.2 benefit accrual rate is 1.2 percent. 133.3 Subd. 2. [COORDINATED PLAN MEMBERS.] The applicable 133.4 benefit accrual rate is 1.7 percent. 133.5 Subd. 2a. [COORDINATED MEMBERS.] The applicable benefit 133.6 accrual rate is 2.0 percent. 133.7 Subd. 3. [BASIC PLAN MEMBERS.] The applicable benefit 133.8 accrual rate is 2.2 percent. 133.9 Subd. 4. [BASIC PLAN MEMBERS.] The applicable benefit 133.10 accrual rate is 2.7 percent. 133.11 Subd. 5. [CORRECTIONAL PLAN MEMBERS.] The applicable 133.12 benefit accrual rate is 2.4 percent. 133.13 Subd. 5a. [LOCAL GOVERNMENT CORRECTIONAL SERVICE PLAN.] 133.14 The applicable benefit accrual rate is 1.9 percent. 133.15 Subd. 6. [STATE TROOPERS PLAN AND POLICE AND FIRE PLAN 133.16 MEMBERS.] The applicable benefit accrual rate is 3.0 percent. 133.17 Subd. 7. [JUDGES PLAN.] The applicable benefit accrual 133.18 rate is 2.7 percent. 133.19 Subd. 8. [JUDGES PLAN.] The applicable benefit accrual 133.20 rate is 3.2 percent. 133.21 Subd. 9. [FUTURE BENEFIT ACCRUAL RATE INCREASES.] After 133.22 January 2, 1998, benefit accrual rate increases under this 133.23 section must apply only to allowable service or formula service 133.24 rendered after the effective date of the benefit accrual rate 133.25 increase. 133.26 Sec. 23. Minnesota Statutes 2000, section 356.32, is 133.27 amended to read: 133.28 356.32 [PROPORTIONATE ANNUITY AT AGE 65.] 133.29 Subdivision 1. [PROPORTIONATE RETIREMENT ANNUITY.] (a) 133.30 Notwithstanding any provision to the contrary of the laws 133.31 governing any of the retirement fundsreferred toenumerated in 133.32 subdivision 2, any person who is an active member of any 133.33 applicable fund, who has credit for at least one year but less 133.34 than ten years of allowable service in one or more of 133.35 theapplicable fundscovered plans, and who terminates active 133.36 servicepursuant tounder a mandatory retirement law or policy 134.1 or at age 65 or older, or at the normal retirement age if this 134.2 age is not age 65, for any reasonshall beis entitled upon 134.3 making written application on the form prescribed byexecutive134.4director or executive secretarythe chief administrative officer 134.5 of thefundplan to a proportionate retirement annuity from each 134.6applicable fundcovered plan in which the person has allowable 134.7 service credit. 134.8 (b) The proportionate annuityshallmust be calculated 134.9 under the applicable laws governing annuities based upon 134.10 allowable service credit at the time of retirement and the 134.11 person's average salary for the highest five successive years of 134.12 allowable service or the average salary for the entire period of 134.13 allowable service if less than five years. 134.14 (c) Nothing in this sectionshall preventprevents the 134.15 imposition of the appropriate early retirement reduction of an 134.16 annuity which commencesprior tobefore the normal retirement 134.17 age. 134.18 Subd. 2. [COVEREDFUNDSRETIREMENT PLANS.] The provisions 134.19 of this sectionshallapply to the following retirement 134.20fundsplans: 134.21 (1) the general state employees retirementfundplan of the 134.22 Minnesota state retirement system, establishedpursuant tounder 134.23 chapter 352; 134.24 (2) the correctional state employees retirementprogram134.25 plan of the Minnesota state retirement system, established 134.26pursuant tounder chapter 352; 134.27 (3) the state patrol retirementfundplan, 134.28 establishedpursuant tounder chapter 352B; 134.29 (4) the general employees retirement plan of the public 134.30 employees retirementfundassociation, establishedpursuant to134.31 under chapter 353; 134.32 (5) the public employees police and firefundplan of the 134.33 public employees retirement association, establishedpursuant to134.34 under chapter 353; 134.35 (6) the teachers retirement association, established 134.36pursuant tounder chapter 354; 135.1 (7) the Minneapolis employees retirement fund, established 135.2pursuant tounder chapter 422A; 135.3 (8) the Duluth teachers retirement fund association, 135.4 establishedpursuant tounder chapter 354A; 135.5 (9) the Minneapolis teachers retirement fund association, 135.6 establishedpursuant tounder chapter 354A; and 135.7 (10) the St. Paul teachers retirement fund association, 135.8 establishedpursuant tounder chapter 354A. 135.9 Sec. 24. Minnesota Statutes 2000, section 356.40, is 135.10 amended to read: 135.11 356.40 [DATE FOR PAYMENT OF ANNUITIES AND BENEFITS.] 135.12 (a) Notwithstanding any law to the contrary, all annuities 135.13 and benefits payable on and after December 1, 1977 by a covered 135.14 retirement fund, as defined in section 356.30, subdivision 3, 135.15shallmust be paid in advance for each month during the first 135.16 week of that month. The bylaws ofmunicipallocal retirement 135.17 fundsshallmust be amended accordingly. 135.18 (b) In no event, however,shallmay this sectionauthorize135.19more than one payment in any one month where the law governing135.20the applicable retirement fund as of June 30, 1977 already135.21provides for the full payment or accrual of annuities and135.22benefits in advance for each month or as of the first day of the135.23month, nor shall itauthorize the payment of both a retirement 135.24 annuity and a surviving spouse's benefit in one month where the 135.25 law governing the applicable retirement fund provides for the 135.26 payment of the retired member's retirement annuity to the 135.27 surviving spouse for the month in which the retired member dies. 135.28 Sec. 25. [356.403] [NORMAL RETIREMENT AGE; SAVINGS 135.29 CLAUSE.] 135.30 The intent of the legislature in sections 352.01, 135.31 subdivision 25; 353.01, subdivision 37; 354.05, subdivision 38; 135.32 and 354A.011, subdivision 15a, is to create a normal retirement 135.33 age for persons first covered by those sections after May 16, 135.34 1989, that is the same as the retirement age in the federal 135.35 Social Security law, including future amendments to that law. 135.36 If a court determines that the legislature may not incorporate 136.1 by reference the future changes in federal Social Security law, 136.2 the legislature reserves the right to amend the appropriate 136.3 sections to make the normal retirement age conform to the 136.4 retirement age in the federal Social Security law. No person 136.5 first covered by any of those sections after May 16, 1989, has a 136.6 right to a normal retirement age that is less than the 136.7 retirement age in the federal Social Security law. 136.8 Sec. 26. [356.405] [COMBINED PAYMENT OF RETIREMENT 136.9 ANNUITIES.] 136.10 (a) The public employees retirement association and the 136.11 Minnesota state retirement system are permitted to combine 136.12 payments to retirees. The total payment must be equal to the 136.13 amount that is payable if payments were kept separate. The 136.14 retiree must agree, in writing, to have the payment combined. 136.15 (b) Each plan must calculate the benefit amounts under the 136.16 laws governing the plan and the required reserves and future 136.17 mortality losses or gains must be paid or accrued to the plan 136.18 from which the service was earned. Each plan must account for 136.19 its portion of the payment separately, and there may be no 136.20 additional actuarial liabilities realized by either plan. 136.21 (c) The plan making the payment would be responsible for 136.22 issuing one payment and making address changes, tax withholding 136.23 changes, and other administrative functions needed to process 136.24 the payment. 136.25 SURVIVOR BENEFITS 136.26 Sec. 27. [356.406] [LOSS OF ENTITLEMENT TO BENEFITS FOR 136.27 SURVIVOR CAUSING DEATH OF PENSION PLAN MEMBER.] 136.28 Subdivision 1. [DEFINITIONS.] (a) Each of the words or 136.29 terms defined in this subdivision has the meaning indicated. 136.30 (b) "Public pension plan" means any retirement plan or fund 136.31 enumerated in section 356.20, subdivision 2, or 356.30, 136.32 subdivision 3, any relief association governed by section 69.77 136.33 or sections 69.771 to 69.775, any retirement plan governed by 136.34 chapter 354B or 354C, the Hennepin county supplemental 136.35 retirement plan governed by sections 383B.46 to 383B.52, or any 136.36 housing and redevelopment authority retirement plan. 137.1 (c) "Public pension plan member" means a person who is a 137.2 participant covered by a public pension plan; a former 137.3 participant of a public pension plan who has sufficient service 137.4 to be entitled to receive a future retirement annuity or service 137.5 pension; a recipient of a retirement annuity, service pension, 137.6 or disability benefit from a public pension plan; or a former 137.7 participant of a public pension plan who has member or employee 137.8 contributions to the person's credit in the public pension plan. 137.9 (d) "Survivor" means the surviving spouse, a former spouse, 137.10 a surviving child, a joint annuitant, a designated recipient of 137.11 a second or remainder portion of an optional annuity form, a 137.12 beneficiary, or the estate of a deceased public pension plan 137.13 member, as those terms are commonly understood or defined in the 137.14 benefit plan document of the public pension plan. 137.15 (e) "Survivor benefit" means a surviving spouse benefit, 137.16 surviving child benefit, second or remainder portion of an 137.17 optional annuity form, death benefit, funeral benefit, or refund 137.18 of member or employee contributions payable on account of the 137.19 death of a public pension plan member as provided for in the 137.20 benefit plan document of the public pension plan. 137.21 Subd. 2. [SUSPENSION OF SURVIVOR BENEFITS UPON FELONY 137.22 CHARGE.] During the pendency of a charge of a survivor of a 137.23 felony that caused the death of a public pension plan member, of 137.24 criminal liability for a death by wrongful act felony, or of 137.25 conspiracy to commit a death by wrongful act felony, the 137.26 entitlement of that survivor to receive a survivor benefit is 137.27 suspended. 137.28 Subd. 3. [FORFEITURE OF SURVIVOR BENEFITS UPON FELONY 137.29 CONVICTION.] On final conviction of a survivor of a felony that 137.30 caused the death of a public pension plan member, of criminal 137.31 liability for a death by wrongful act felony, or of conspiracy 137.32 to commit a death by wrongful act felony, the entitlement of 137.33 that survivor to receive a survivor benefit is forfeited, 137.34 including entitlement for any previously suspended survivor 137.35 benefits under subdivision 2. 137.36 Subd. 4. [SUSPENSION OR FORFEITURE ACTIONS SEPARATE.] The 138.1 charge of one survivor under subdivision 2 or the conviction of 138.2 one survivor under subdivision 3 does not affect the entitlement 138.3 of another survivor to a survivor benefit. 138.4 Subd. 5. [RECOVERY OF CERTAIN BENEFITS.] If monthly 138.5 benefits or a refund of the balance of a participant or former 138.6 participant's account have already been paid to an individual 138.7 who is later charged or convicted as described under this 138.8 section, the executive director or chief administrative officer 138.9 of the public pension plan shall attempt to recover the amounts 138.10 paid. Payment may be made to the next beneficiary or survivor 138.11 only in an amount equal to the amount recovered and in the 138.12 amount of any future payments that would legally accrue to 138.13 another survivor under the applicable laws of the retirement 138.14 plan. 138.15 Subd. 6. [DISPOSITION OF FORFEITED SURVIVOR BENEFITS.] If 138.16 the benefit plan document governing the public pension plan does 138.17 not provide for the disposition of forfeited benefits, survivor 138.18 benefits forfeited under this section must be deposited in the 138.19 general fund of the state. 138.20 Sec. 28. [356.407] [RESTORATION OF SURVIVOR BENEFITS.] 138.21 Subdivision 1. [RESTORATION UPON TERMINATION OF 138.22 REMARRIAGE.] Notwithstanding any provision to the contrary of 138.23 the laws governing any of the retirement plans enumerated in 138.24 subdivision 2, any person who was receiving a surviving spouse's 138.25 benefit from any of those plans and whose benefit terminated 138.26 solely because of remarriage is, if the remarriage terminates 138.27 for any reason, again entitled upon reapplication to a surviving 138.28 spouse's benefit; provided, however, that the person is not 138.29 entitled to retroactive payments for the period of remarriage. 138.30 The benefit resumes at the level which the person would have 138.31 been receiving if there had been no remarriage. This section 138.32 applies prospectively to any person who first becomes entitled 138.33 to receive a surviving spouse's benefit on or after May 18, 138.34 1975, and also applies retroactively to any person who first 138.35 became entitled to receive a surviving spouse's benefit before 138.36 May 18, 1975; provided, however, that no person is entitled to 139.1 retroactive payments for any period of time before May 18, 1975. 139.2 Subd. 2. [COVERED FUNDS.] The provisions of this section 139.3 apply to the following retirement funds: 139.4 (1) the general employees retirement plan of the public 139.5 employees retirement association established under chapter 353; 139.6 (2) the public employees police and fire plan of the public 139.7 employees retirement association established under chapter 353; 139.8 (3) the state patrol retirement plan established under 139.9 chapter 352B; 139.10 (4) the legislators retirement plan established under 139.11 chapter 3A; 139.12 (5) the elective state officers retirement plan established 139.13 under chapter 352C; 139.14 (6) the teachers retirement association established under 139.15 chapter 354; and 139.16 (7) the Minneapolis employees retirement fund established 139.17 under chapter 422A. 139.18 POSTRETIREMENT INCREASES 139.19 Sec. 29. Minnesota Statutes 2000, section 356.41, is 139.20 amended to read: 139.21 356.41 [BENEFIT ADJUSTMENTS FOR CERTAIN DISABILITY AND 139.22 SURVIVOR BENEFITS.] 139.23 Disability benefits payable to a disabilitant, if not 139.24 otherwise included in the participation in the Minnesota 139.25 postretirement investment fund, and survivor benefits payable to 139.26 a survivor from any public pensionfundplan which participates 139.27 in the Minnesota postretirement investment fundshallmust be 139.28 adjusted in the same manner, at the same times and in the same 139.29 amounts as are benefits payable from the Minnesota 139.30 postretirement investment fund to eligible benefit recipients of 139.31 that public pensionfundplan. If a disability benefit is not 139.32 included in the participation in the Minnesota postretirement 139.33 investment fund, the disability benefit is recomputed as a 139.34 retirement annuity and the recipient would have been eligible 139.35 for an adjustmentpursuant tounder this section if the 139.36 disability benefit was not recomputed, the recipientwill140.1continue to beremains eligible for the adjustmentpursuant to140.2 under this section after the recomputation. For the survivor of 140.3 a deceased annuitant who receives a survivor benefit 140.4 calculatedpursuant tounder a prior law rather than the second 140.5 portion of a joint and survivor annuity, any period of receipt 140.6 of a retirement annuity by the annuitantshallmust be utilized 140.7 in determining the period of receipt for eligibility to receive 140.8 an adjustmentpursuant tounder this section. No recipient 140.9shall, however,beis entitled to more than one adjustment 140.10pursuant tounder this section or section 11A.18 applicable to 140.11 one benefit at one time by reason of this section. 140.12 Sec. 30. [356.42] [POSTRETIREMENT ADJUSTMENT; LUMP SUM 140.13 PAYMENTS.] 140.14 Subdivision 1. [ENTITLEMENT.] A person who is receiving a 140.15 retirement annuity, a disability benefit, or a surviving 140.16 spouse's annuity or benefit from a retirement fund specified in 140.17 subdivision 3, clauses (1) to (8), is entitled to receive a 140.18 postretirement adjustment from the applicable retirement fund in 140.19 the amount specified in subdivision 2, if the annuity or benefit 140.20 was computed under: 140.21 (1) the laws in effect before June 1, 1973, if the person 140.22 is receiving an annuity or benefit from the retirement fund 140.23 specified in subdivision 3, clause (4); 140.24 (2) the laws in effect before July 1, 1973, if the person 140.25 is receiving an annuity or benefit from a retirement fund 140.26 specified in subdivision 3, clause (1), (2), (3), or (5); 140.27 (3) the metropolitan transit commission transit operating 140.28 division employees retirement fund plan document in effect on or 140.29 before December 31, 1977, if the person is receiving a 140.30 retirement annuity, a disability benefit, or a surviving 140.31 spouse's annuity or benefit from the retirement fund specified 140.32 in subdivision 3, clause (5); 140.33 (4) the laws in effect before May 1, 1974, and before any 140.34 adjustment under Laws 1987, chapter 372, article 3, if the 140.35 person is receiving an annuity or benefit from the retirement 140.36 fund specified in subdivision 3, clause (6); 141.1 (5) the laws in effect before January 1, 1970, if the 141.2 person is receiving an annuity or benefit from the retirement 141.3 fund specified in subdivision 3, clause (7); or 141.4 (6) the laws in effect before June 30, 1971, if the person 141.5 is receiving an annuity or benefit from the retirement fund 141.6 specified in subdivision 3, clause (8). 141.7 Subd. 2. [AMOUNT OF POSTRETIREMENT ADJUSTMENT; PAYMENT.] 141.8 (a) For any person receiving an annuity or benefit on November 141.9 30, 1989, and entitled to receive a postretirement adjustment 141.10 under subdivision 1, the postretirement adjustment is a lump-sum 141.11 payment calculated under paragraph (b) or (c). 141.12 (b) For coordinated plan annuity or benefit recipients, the 141.13 postretirement adjustment in 1989 is $25 for each full year of 141.14 allowable service credited to the person by the respective 141.15 retirement fund. In 1990 and each following year, the 141.16 postretirement adjustment is the amount payable in the preceding 141.17 year increased by the same percentage applied to regular 141.18 annuities paid from the postretirement fund or, for the 141.19 retirement funds specified in subdivision 3, clauses (6), (7), 141.20 and (8), by the same percentage applied under the articles of 141.21 incorporation and bylaws of these funds. 141.22 (c) For basic plan annuity or benefit recipients, the 141.23 postretirement adjustment in 1989 is the greater of: 141.24 (1) $25 for each full year of allowable service credited to 141.25 the person by the respective retirement fund; or 141.26 (2) the difference between: 141.27 (i) the product of $400 times the number of full years of 141.28 allowable service credited to the person by the respective 141.29 retirement fund; and 141.30 (ii) the sum of the benefits payable to the person from any 141.31 Minnesota public employee pension plan, and cash benefits 141.32 payable to the person from the Social Security Administration. 141.33 In 1990 and each following year, each eligible basic plan 141.34 annuity or benefit recipient shall receive the amount received 141.35 in the preceding year increased by the same percentage applied 141.36 to regular annuities paid from the postretirement fund or, for 142.1 the retirement funds specified in subdivision 3, clauses (6), 142.2 (7), and (8), by the same percentage applied under the articles 142.3 of incorporation and bylaws of these funds. 142.4 (d) The postretirement adjustment provided for in this 142.5 section must be paid on December 1 to those persons receiving an 142.6 annuity or benefit on the preceding November 30. This section 142.7 does not authorize the payment of a postretirement adjustment to 142.8 an estate if the annuity or benefit recipient dies before the 142.9 November 30 eligibility date. The postretirement adjustment 142.10 provided for in this section must be paid automatically unless 142.11 the intended recipient files a written notice with the 142.12 retirement fund requesting that the postretirement adjustment 142.13 not be paid or returns the amount of adjustment to the 142.14 retirement fund. Written notice of the waiver of the 142.15 postretirement adjustment is irrevocable for the year during 142.16 which it was made. 142.17 Subd. 3. [COVERED RETIREMENT PLANS.] The postretirement 142.18 adjustment provided in this section applies to the following 142.19 retirement funds: 142.20 (1) the general employees retirement plans of the public 142.21 employees retirement association; 142.22 (2) the public employees police and fire plan of the public 142.23 employees retirement association; 142.24 (3) the teachers retirement association; 142.25 (4) the state patrol retirement plan; 142.26 (5) the state employees retirement plan of the Minnesota 142.27 state retirement system; 142.28 (6) the Minneapolis teachers retirement fund association 142.29 established under chapter 354A; 142.30 (7) the St. Paul teachers retirement fund association 142.31 established under chapter 354A; and 142.32 (8) the Duluth teachers retirement fund association 142.33 established under chapter 354A. 142.34 Sec. 31. [356.43] [SUPPLEMENTAL BENEFIT; LUMP-SUM 142.35 PAYMENTS; MINNEAPOLIS EMPLOYEES RETIREMENT FUND.] 142.36 Subdivision 1. [ENTITLEMENT.] Any person who is receiving 143.1 either an annuity that was computed under the laws in effect 143.2 before March 5, 1974, or a "$2 bill and annuity" annuity from 143.3 the Minneapolis employees retirement fund is entitled to receive 143.4 a supplemental benefit lump-sum payment from the retirement fund 143.5 in the amount specified in subdivision 2. 143.6 Subd. 2. [AMOUNT OF PAYMENT.] (a) For any person receiving 143.7 an annuity or benefit on November 30, 1991, and entitled to 143.8 receive a supplemental benefit lump-sum payment under 143.9 subdivision 1, the payment is $28 for each full year of 143.10 allowable service credited to the person by the retirement fund. 143.11 In 1992 and each following year, each eligible benefit 143.12 recipient is entitled to receive the amount received in the 143.13 preceding year increased by the same percentage applied on the 143.14 most recent January 1 to regular annuities paid from the 143.15 Minneapolis employees retirement fund. 143.16 (b) The payment provided for in this section is payable on 143.17 December 1, 1991, to those persons receiving an annuity or 143.18 benefit on November 30, 1991. In subsequent years, the payment 143.19 must be made on December 1 to those persons receiving an annuity 143.20 or benefit on the preceding November 30. This section does not 143.21 authorize payment to an estate if the annuity or benefit 143.22 recipient dies before the November 30 eligibility date. The 143.23 payment provided for in this section must be paid automatically 143.24 unless the intended recipient files a written notice with the 143.25 retirement fund requesting that it not be paid. 143.26 Subd. 3. [STATE APPROPRIATION.] Payments under this 143.27 section are the responsibility of the Minneapolis employees 143.28 retirement fund. A separate state aid is provided toward the 143.29 level dollar amortized cost of the payments. For state fiscal 143.30 years 1992 to 2001 inclusive, there is appropriated annually 143.31 $550,000 from the general fund to the commissioner of finance to 143.32 be added, in quarterly installments, to the annual state 143.33 contribution amount determined under section 422A.101, 143.34 subdivision 3. After fiscal year 2001, any difference between 143.35 the cumulative benefit amounts actually paid under this section 143.36 after fiscal year 1991 and the amounts paid to the retirement 144.1 fund by the state under this subdivision, plus investment 144.2 earnings on the aid, shall be included by the retirement fund 144.3 board and the actuary retained by the legislative commission on 144.4 pensions and retirement in determining the financial 144.5 requirements of the fund and contributions under section 144.6 422A.101. 144.7 Sec. 32. [356.431] [CONVERSION OF LUMP-SUM POSTRETIREMENT 144.8 AND SUPPLEMENTAL PAYMENT TO AN INCREASED MONTHLY ANNUITY.] 144.9 Subdivision 1. [LUMP-SUM POSTRETIREMENT PAYMENT 144.10 CONVERSION.] For benefits paid after December 31, 2001, to 144.11 eligible persons under sections 356.42 and 356.43, the amount of 144.12 the most recent lump-sum benefit payable to an eligible 144.13 recipient under sections 356.86 and 356.865 must be divided by 144.14 12. The result must be added to the monthly annuity or benefit 144.15 otherwise payable to an eligible recipient, must become a 144.16 permanent part of the benefit recipient's pension, and must be 144.17 included in any pension benefit subject to future increases. 144.18 Subd. 2. [TRANSFER OF REQUIRED RESERVES TO MINNESOTA 144.19 POSTRETIREMENT INVESTMENT FUND.] Public employee retirement 144.20 funds participating in the state board of investment 144.21 postretirement investment fund shall transfer the required 144.22 reserves for the postretirement conversion under subdivision 1 144.23 to the postretirement investment fund by January 31, 2002. 144.24 REFUNDS 144.25 Sec. 33. [356.44] [PARTIAL PAYMENT OF PENSION PLAN 144.26 REFUND.] 144.27 (a) Notwithstanding any provision of law to the contrary, a 144.28 member of a pension plan listed in section 356.30, subdivision 144.29 3, with at least two years of forfeited service taken from a 144.30 single pension plan, may repay a portion of all refunds. A 144.31 partial refund repayment must comply with this section. 144.32 (b) The minimum portion of a refund repayment is one-third 144.33 of the total service credit period of all refunds taken from a 144.34 single plan. 144.35 (c) The cost of the partial refund repayment is the product 144.36 of the cost of the total repayment multiplied by the ratio of 145.1 the restored service credit to the total forfeited service 145.2 credit. The total repayment amount includes interest at the 145.3 annual rate of 8.5 percent, compounded annually, from the refund 145.4 date to the date repayment is received. 145.5 (d) The restored service credit must be allocated based on 145.6 the relationship the restored service bears to the total service 145.7 credit period for all refunds taken from a single pension plan. 145.8 (e) This section does not authorize a public pension plan 145.9 member to repay a refund if the law governing the plan does not 145.10 authorize the repayment of a refund of member contributions. 145.11 Sec. 34. [356.441] [REPAYMENT OF REFUNDS.] 145.12 Repayment of a refund and interest on that refund permitted 145.13 under laws governing any public pension plan in Minnesota may be 145.14 made with funds distributed from a plan qualified under the 145.15 federal Internal Revenue Code of 1986, section 401(a), as 145.16 amended through December 31, 1988, or an annuity qualified under 145.17 the federal Internal Revenue Code of 1986, section 403(a). 145.18 Repayment may also be made with funds distributed from an 145.19 individual retirement account used solely to receive a 145.20 nontaxable rollover from that type of a plan or annuity. The 145.21 repaid refund must be separately accounted for as member 145.22 contributions not previously taxed. Before accepting any 145.23 transfers to which this section applies, the executive director 145.24 must require the member to provide written documentation to 145.25 demonstrate that the amounts to be transferred are eligible for 145.26 a tax-free rollover and qualify for that treatment under the 145.27 federal Internal Revenue Code of 1986. 145.28 OPTIONAL ANNUITY FORMS 145.29 Sec. 35. [356.46] [APPLICATION FOR RETIREMENT ANNUITY; 145.30 PROCEDURE FOR ELECTING ANNUITY FORM.] 145.31 Subdivision 1. [DEFINITIONS.] As used in this section, 145.32 each of the following terms shall have the meaning given. 145.33 (a) "Annuity form" means the payment procedure and duration 145.34 of a retirement annuity or disability benefit available to a 145.35 member of a public pension fund, based on the period over which 145.36 a retirement annuity or disability benefit is payable, 146.1 determined by the number of persons to whom the retirement 146.2 annuity or disability benefit is payable, and the amount of the 146.3 retirement annuity or disability benefit which is payable to 146.4 each person. 146.5 (b) "Joint and survivor optional annuity" means an optional 146.6 annuity form which provides a retirement annuity or disability 146.7 benefit to a retired member and the spouse of the member on a 146.8 joint basis during the lifetime of the retired member and all or 146.9 a portion of the original retirement annuity or disability 146.10 benefit amount to the surviving spouse in the event of the death 146.11 of the retired member. 146.12 (c) "Optional annuity form" means an annuity form which is 146.13 elected by a member and is not provided automatically as the 146.14 standard annuity form of the public pension plan. 146.15 (d) "Public pension plan" means a public pension plan as 146.16 defined under section 356.615, paragraph (b). 146.17 (e) "Retirement annuity" means a series of monthly payments 146.18 to which a former or retired member of a public pension fund is 146.19 entitled due to attaining a specified age and acquiring credit 146.20 for a specified period of service, which includes a retirement 146.21 annuity, retirement allowance, or service pension. 146.22 (f) "Disability benefit" means a series of monthly payments 146.23 to which a former or disabled member of a public pension fund is 146.24 entitled due to a physical or mental inability to engage in 146.25 specified employment. 146.26 Subd. 2. [PROVISION OF INFORMATION ON ANNUITY FORMS.] 146.27 Every public pension plan which provides for an annuity form 146.28 other than a single life retirement annuity as an option which 146.29 can be elected by an active, disabled, or retiring member shall 146.30 provide as a part of, or accompanying the annuity application 146.31 form, a written statement summarizing the optional annuity forms 146.32 which are available, a general indication of the consequences of 146.33 selecting one annuity form over another, a calculation of the 146.34 actuarial reduction in the amount of the retirement annuity 146.35 which would be required for each optional annuity form, and the 146.36 procedure to be followed to obtain more information from the 147.1 public pension fund concerning the optional annuity forms 147.2 provided by the plan. 147.3 Subd. 3. [REQUIREMENT OF NOTICE TO MEMBER'S SPOUSE.] (a) 147.4 If a public pension plan provides optional retirement annuity 147.5 forms which include a joint and survivor optional retirement 147.6 annuity form potentially applicable to the surviving spouse of a 147.7 member, the executive director of the public pension plan shall 147.8 send a copy of the written statement, required by subdivision 2, 147.9 to the spouse of the member before the member's election of an 147.10 optional retirement annuity. 147.11 (b) Following the election of a retirement annuity by the 147.12 member, a copy of the completed retirement annuity application 147.13 and retirement annuity beneficiary form, if applicable, must be 147.14 sent by the public pension plan to the spouse of the retiring 147.15 member. A signed acknowledgment must be required from the 147.16 spouse confirming receipt of a copy of the completed retirement 147.17 annuity application and retirement annuity beneficiary form, 147.18 unless the spouse's signature confirming the receipt is on the 147.19 annuity application form. If the required signed acknowledgment 147.20 is not received from the spouse within 30 days, the public 147.21 pension plan must send another copy of the completed retirement 147.22 annuity application and retirement annuity beneficiary form, if 147.23 applicable, to the spouse by certified mail with restricted 147.24 delivery. 147.25 Sec. 36. [356.465] [SUPPLEMENTAL NEEDS TRUST AS OPTIONAL 147.26 ANNUITY FORM RECIPIENT.] 147.27 Subdivision 1. [INCLUSION AS RECIPIENT.] Notwithstanding 147.28 any provision to the contrary of the laws, articles of 147.29 incorporation, or bylaws governing a covered retirement plan 147.30 specified in subdivision 3, a retiring member may designate a 147.31 qualified supplemental needs trust under subdivision 2 as the 147.32 remainder recipient on an optional retirement annuity form for a 147.33 period not to exceed the lifetime of the beneficiary of the 147.34 supplemental needs trust. 147.35 Subd. 2. [DEFINITION OF QUALIFIED SUPPLEMENTAL NEEDS 147.36 TRUST.] A qualified supplemental needs trust is a trust that: 148.1 (1) was established on or after July 1, 1992; 148.2 (2) was established solely for the benefit of one person 148.3 who has a disability under federal Social Security 148.4 Administration supplemental security income or retirement, 148.5 survivors, and disability insurance disability determination 148.6 standards and who was determined as such before the creation of 148.7 the trust; 148.8 (3) is funded, in whole or in part, by the primary 148.9 recipient of the optional annuity form and, unless the trust is 148.10 a Zebley trust, is not funded by the beneficiary, the 148.11 beneficiary's spouse, or a person who is required to pay a sum 148.12 to or for the trust beneficiary under the terms of litigation or 148.13 a litigation settlement; 148.14 (4) is established to cover reasonable living expenses and 148.15 other basic needs of the disabilitant, in whole or in part, in 148.16 instances when public assistance does not provide sufficiently 148.17 for these needs; 148.18 (5) is not permitted to make disbursement to replace or 148.19 reduce public assistance otherwise available; 148.20 (6) is irrevocable; 148.21 (7) terminates upon the death of the disabled person for 148.22 whose benefit it was established; and 148.23 (8) is determined by the executive director to be a trust 148.24 that contains excluded assets for purposes of the qualification 148.25 for public entitlement benefits under the applicable federal and 148.26 state laws and regulations. 148.27 Subd. 3. [COVERED RETIREMENT PLANS.] The provisions of 148.28 this section apply to the following retirement plans: 148.29 (1) the general state employees retirement plan of the 148.30 Minnesota state retirement system established under chapter 352; 148.31 (2) the correctional state employees retirement plan of the 148.32 Minnesota state retirement system established under chapter 352; 148.33 (3) the state patrol retirement plan established under 148.34 chapter 352B; 148.35 (4) the legislators retirement plan established under 148.36 chapter 3A; 149.1 (5) the judges retirement plan established under chapter 149.2 490; 149.3 (6) the general employees retirement plan of the public 149.4 employees retirement association established under chapter 353; 149.5 (7) the public employees police and fire plan of the public 149.6 employees retirement association established under chapter 353; 149.7 (8) the teachers retirement plan established under chapter 149.8 354; 149.9 (9) the Duluth teachers retirement fund association 149.10 established under chapter 354A; 149.11 (10) the St. Paul teachers retirement fund association 149.12 established under chapter 354A; 149.13 (11) the Minneapolis teachers retirement fund association 149.14 established under chapter 354A; 149.15 (12) the Minneapolis employees retirement plan established 149.16 under chapter 422A; 149.17 (13) the Minneapolis firefighters relief association 149.18 established under chapter 423C; 149.19 (14) the Minneapolis police relief association established 149.20 under chapter 423B; and 149.21 (15) the local government correctional service retirement 149.22 plan of the public employees retirement association established 149.23 under chapter 353E. 149.24 REEMPLOYED ANNUITANT EARNINGS DISPOSITION 149.25 Sec. 37. [356.47] [DISPOSITION OF AMOUNT IN EXCESS OF 149.26 REEMPLOYED ANNUITANT EARNINGS LIMITATIONS.] 149.27 Subdivision 1. [APPLICATION.] This section applies to the 149.28 balance of annual retirement annuities on the amount of 149.29 retirement annuity reductions after reemployed annuitant 149.30 earnings limitations for retirement plans governed by section 149.31 352.115, subdivision 10; 353.37; 354.44, subdivision 5; or 149.32 354A.31, subdivision 3. 149.33 Subd. 2. [RECORDKEEPING; REPORTING.] The chief 149.34 administrative officer of each retirement plan shall keep 149.35 records for each reemployed annuitant of the amount of the 149.36 annuity reduction. This amount must be reported to each member 150.1 at least once each year. 150.2 Subd. 3. [PAYMENT.] (a) Upon the retired member attaining 150.3 the age of 65 years or upon the first day of the month next 150.4 following the month occurring one year after the termination of 150.5 the reemployment that gave rise to the limitation, whichever is 150.6 later, and the filing of a written application, the retired 150.7 member is entitled to the payment, in a lump sum, of the value 150.8 of the person's amount under subdivision 2, plus interest at the 150.9 compound annual rate of six percent from the date that the 150.10 amount was deducted from the retirement annuity to the date of 150.11 payment. 150.12 (b) The written application must be on a form prescribed by 150.13 the chief administrative officer of the applicable retirement 150.14 plan. 150.15 (c) If the retired member dies before the payment provided 150.16 for in paragraph (a) is made, the amount is payable, upon 150.17 written application, to the deceased person's surviving spouse, 150.18 or if none, to the deceased person's designated beneficiary, or 150.19 if none, to the deceased person's estate. 150.20 MARRIAGE DISSOLUTION RETIREMENT 150.21 COVERAGE INFORMATION 150.22 Sec. 38. [356.49] [PROVISION OF INFORMATION IN THE EVENT 150.23 OF MARRIAGE DISSOLUTION.] 150.24 Subdivision 1. [INFORMATION FOR A PENDING MARRIAGE 150.25 DISSOLUTION.] (a) Upon receipt of a written request by a person 150.26 with access to the data under subdivision 3 who cites this 150.27 statute, a public or private pension plan administrator must 150.28 provide the court and the parties to a marriage dissolution 150.29 action involving a plan member or former plan member with 150.30 information regarding pension benefits or rights of the plan 150.31 member or former plan member. The pension plan shall provide 150.32 this information upon the request of the court or a party to the 150.33 action without requiring a signed authorization from the plan 150.34 member or former plan member. 150.35 (b) The information must include the pension benefits or 150.36 rights of the plan member or former plan member as of the first 151.1 day of the month following the date of the request, or as of the 151.2 end of the previous fiscal year for the plan, and as of the date 151.3 of valuation of marital assets under section 518.58, if the 151.4 person requesting the information specifies that date. The 151.5 information must include the accrued service credit of the 151.6 person, the credited salary of the person for the most current 151.7 five-year period, a summary of the benefit plan, and any other 151.8 information relevant to the calculation of the present value of 151.9 the benefits or rights. 151.10 Subd. 2. [INFORMATION FOR AN EXISTING DISSOLUTION DECREE.] 151.11 If a marriage dissolution decree rendered by a court of 151.12 competent jurisdiction prior to August 1, 1987, provided a 151.13 procedure for the distribution of future pension plan payments, 151.14 upon request the applicable pension plan administrator shall 151.15 provide on a timely basis to the court and the parties to the 151.16 action, the required information to implement that procedure 151.17 without requiring a signed authorization from the plan member or 151.18 former plan member. 151.19 Subd. 3. [ACCESS TO DATA.] Notwithstanding any provision 151.20 of chapter 13 to the contrary, an administrator may release 151.21 private or confidential data on individuals to the court, the 151.22 parties to a marriage dissolution, their attorneys, and an 151.23 actuary appointed under section 518.582, to the extent necessary 151.24 to comply with this section, but only if the administrator has 151.25 received a copy of the legal petition showing that an action for 151.26 marriage dissolution has commenced and a copy of the affidavit 151.27 of service showing that the petition has been served on the 151.28 responding party to the action. 151.29 SERVICE AND SALARY CREDIT UPON 151.30 WRONGFUL DISCHARGE 151.31 Sec. 39. Minnesota Statutes 2000, section 356.50, is 151.32 amended to read: 151.33 356.50 [SERVICE AND SALARY CREDIT FROM BACK PAY AWARDS IN 151.34 THE EVENT OF WRONGFUL DISCHARGE.] 151.35 (a) A person who is wrongfully discharged from public 151.36 employment that gave rise to coverage by a public employee 152.1 pension planlistedenumerated in section 356.30, subdivision 3, 152.2 is entitled to obtain allowable service credit from the 152.3 applicable public employee pension plan for the applicable 152.4 period caused by the wrongful discharge. 152.5 (b) A person is wrongfully discharged for purposes of this 152.6 section if: 152.7 (1) the person has been determined by a court of competent 152.8 jurisdiction or by an arbitrator in binding arbitration, 152.9 whichever applies, to have been wrongfully discharged from 152.10 public employment; 152.11 (2) the person received an award of back pay with respect 152.12 to that discharge; and 152.13 (3) the award does not include any amount for any lost or 152.14 interrupted public pension plan coverage. 152.15(b)(c) To obtain the public pension plan allowable service 152.16 credit, the person shall pay the required member contribution 152.17 amount. The required member contribution amount is the member 152.18 contribution rate or rates in effect for the pension plan during 152.19 the period of service covered by the back pay award, applied to 152.20 the unpaid gross salary amounts of the back pay award including 152.21 reemployment insurance, workers' compensation or wages from 152.22 other sources which reduced the back award. No contributions 152.23 shall be made under this clause for compensation covered by a 152.24 public pension plan listed in section 356.30, subdivision 3, for 152.25 employment during the removal period. The person shall pay the 152.26 required member contribution amount within 60 days of the date 152.27 of receipt of the back pay award, within 60 days of April 14, 152.28 1992, or within 60 days of a billing from the retirement fund, 152.29 whichever is later. 152.30(c)(d) The public employer who wrongfully discharged the 152.31 public employee must pay an employer contribution on the back 152.32 pay award. The employer contribution must be based on the 152.33 employer contribution rate or rates in effect for the pension 152.34 plan during the period of service covered by the back pay award, 152.35 applied to the salary amount on which the member contribution 152.36 amount was determined under paragraph(b)(c). Interest on both 153.1 the required member and employer contribution amount must be 153.2 paid by the employer at the annual compound rate of 8.5 percent 153.3 per year, expressed monthly, between the date the contribution 153.4 amount would have been paid to the date of actual payment. The 153.5 employer payment must be made within 30 days of the payment 153.6 under paragraph(b)(c). 153.7 Sec. 40. Minnesota Statutes 2000, section 356.55, as 153.8 amended by Laws 2001, First Special Session chapter 10, article 153.9 6, section 16, is amended to read: 153.10 356.55 [PRIOR SERVICE CREDIT PURCHASE PAYMENT AMOUNT 153.11 DETERMINATION PROCEDURE.] 153.12 Subdivision 1. [APPLICATION.] (a) Unless the prior service 153.13 credit purchase authorization special law or general statute 153.14 provision explicitly specifies a different purchase payment 153.15 amount determination procedure, this section governs the 153.16 determination of the prior service credit purchase payment 153.17 amount of any prior service credit purchase. 153.18 (b) The purchase payment amount determination procedure 153.19 must recognize any service credit accrued to the purchaser in a 153.20 pension planlistedenumerated in section 356.30, subdivision 3. 153.21 (c) Any service credit in a Minnesota defined benefit 153.22 public employee pension plan available to be reinstated by the 153.23 purchaser through the repayment of a refund of member or 153.24 employee contributions previously received must be repaid in 153.25 full before any purchase of prior service credit payment is made 153.26 under this section. 153.27 Subd. 2. [DETERMINATION.] (a) Unless the prior service 153.28 credit purchase minimum purchase payment amount determined under 153.29 paragraph (d) is greater, the prior service credit purchase 153.30 amount is the result obtained by subtracting the amount 153.31 determined under paragraph (c) from the amount determined under 153.32 paragraph (b). 153.33 (b) The present value of the unreduced single life 153.34 retirement annuity, with the purchase of the additional service 153.35 credit included, must be calculated as follows: 153.36 (1) the age at first eligibility for an unreduced single 154.1 life retirement annuity, including the purchase of the 154.2 additional service credit, must be determined; 154.3 (2) the length of total service credit, including the 154.4 period of the purchase of the additional service credit, at the 154.5 age determined under clause (1) must be determined; 154.6 (3) the highest five successive years average salary at the 154.7 age determined under clause (1), assuming five percent annual 154.8 compounding salary increases from the most current annual salary 154.9 amount at the age determined under clause (1), must be 154.10 determined; 154.11 (4) using the benefit accrual rate or rates applicable to 154.12 the prospective purchaser of the service credit based on the 154.13 prospective purchaser's actual date of entry into covered 154.14 service, the length of service determined under clause (2), and 154.15 the final average salary determined under clause (3), the annual 154.16 unreduced single life retirement annuity amount must be 154.17 determined; 154.18 (5) the actuarial present value of the projected annual 154.19 unreduced single life retirement annuity amount determined under 154.20 clause (4) at the age determined under clause (1), using the 154.21 same actuarial factor that the plan would use to determine 154.22 actuarial equivalence for optional annuity forms and related 154.23 purposes, must be determined; and 154.24 (6) the discounted value of the amount determined under 154.25 clause (5) to the date of the prospective purchase, using an 154.26 interest rate of 8.5 percent and no mortality probability 154.27 decrement, must be determined. 154.28 (c) The present value of the unreduced single life 154.29 retirement annuity, without the purchase of the additional 154.30 service credit included, must be calculated as follows: 154.31 (1) the age at first eligibility for an unreduced single 154.32 life retirement annuity, not including the purchase of 154.33 additional service credit, must be determined; 154.34 (2) the length of accrued service credit, without the 154.35 period of the purchase of the additional service credit, at the 154.36 age determined under clause (1), must be determined; 155.1 (3) the highest five successive years average salary at the 155.2 age determined under clause (1), assuming five percent annual 155.3 compounding salary increases from the most current annual salary 155.4 amount to the age determined under clause (1), must be 155.5 determined; 155.6 (4) using the benefit accrual rate or rates applicable to 155.7 the prospective purchaser of the service credit based on the 155.8 prospective purchaser's actual date of entry into covered 155.9 service the length of service credit determined under clause 155.10 (2), and the final average salary determined under clause (3), 155.11 the annual unreduced single life retirement annuity amount must 155.12 be determined; 155.13 (5) the actuarial present value of the projected annual 155.14 unreduced single life retirement annuity amount determined under 155.15 clause (4) at the age determined under clause (1), using the 155.16 same actuarial factor that the plan would use to determine 155.17 actuarial equivalence for optional annuity forms and related 155.18 purposes, must be determined; 155.19 (6) the discounted value of the amount determined under 155.20 clause (5) to the date of the prospective purchase, using an 155.21 interest rate of 8.5 percent and no mortality probability 155.22 decrement, must be determined; and 155.23 (7) the net value of the discounted value determined under 155.24 clause (6), must be determined by applying a service ratio, 155.25 where the numerator is the total length of credited service 155.26 determined under paragraph (b), clause (2), reduced by the 155.27 period of the additional service credit proposed to be 155.28 purchased, and where the denominator is the total length of 155.29 service credit determined under clause (2). 155.30 (d) The minimum prior service credit purchase payment 155.31 amount is the amount determined by multiplying the most current 155.32 annual salary of the prospective purchaser by the combined 155.33 current employee, employer, and any additional employer 155.34 contribution rates for the applicable pension plan and by 155.35 multiplying that result by the number of years of service or 155.36 fractions of years of service of the potential service credit 156.1 purchase. 156.2 Subd. 3. [SOURCE OF DETERMINATION.] The prior service 156.3 credit purchase payment amounts under subdivision 2 must be 156.4 calculated by the chief administrative officer of the public 156.5 pension plan using a prior service credit purchase payment 156.6 amount determination process that has been verified for accuracy 156.7 and consistency under this section by the commission-retained 156.8 actuary. That verification must be in writing and must occur 156.9 before the first prior service credit purchase for the plan 156.10 under this section is accepted and every five years thereafter 156.11 or whenever the preretirement interest rate, postretirement 156.12 interest rate, payroll growth, or mortality actuarial assumption 156.13 for the applicable pension plan is modified under section 156.14 356.215, whichever occurs first. 156.15 Subd. 4. [PRIOR SERVICE CREDIT PURCHASE PROCESSING FEE.] A 156.16 public pension plan may establish a fee to be charged to the 156.17 prospective purchaser for processing a prior service credit 156.18 purchase application and the prior service credit purchase 156.19 payment amount calculation. The fee must be established by the 156.20 governing board of the pension plan and must be uniform for 156.21 comparable service credit purchase situations or actuarial 156.22 calculation requests. The prior service credit purchase 156.23 processing fee structure must be published by the chief 156.24 administrative officer of the applicable retirement plan in the 156.25 State Register. 156.26 Subd. 5. [PAYMENT RESPONSIBILITY; EMPLOYER OPTION.] Unless 156.27 the prior service credit purchase authorization special law or 156.28 general statute provision explicitly specifies otherwise, the 156.29 prior service credit purchase payment amount determined under 156.30 subdivision 2 is payable by the purchaser, but. However, the 156.31 former employer of the purchaser or the current employer of the 156.32 purchaser may, at its discretion, pay all or a portion of the 156.33 purchase payment amount in excess of an amount equal to the 156.34 employee contribution rate or rates in effect during the prior 156.35 service period applied to the actual salary rates in effect 156.36 during the prior service period, plus annual compound interest 157.1 at the rate of 8.5 percent from the date on which the 157.2 contributions would have been made if made contemporaneous with 157.3 the service period to the date on which the payment is actually 157.4 made. 157.5 Subd. 6. [REPORT ON PRIOR SERVICE CREDIT PURCHASES.] (a) 157.6 As part of the regular data reporting provided to the consulting 157.7 actuary retained by the legislative commission on pensions and 157.8 retirement annually, the chief administrative officer of each 157.9 public pension plan that has accepted a prior service credit 157.10 purchase payment under this section shall report for any 157.11 purchase, the purchaser, the purchaser's employer, the age of 157.12 the purchaser, the period of the purchase, the purchaser's 157.13 prepurchase accrued service credit, the purchaser's postpurchase 157.14 accrued service credit, the purchaser's prior service credit 157.15 payment, the prior service credit payment made by the 157.16 purchaser's employer, and the amount of the additional benefit 157.17 or annuity purchased. 157.18 (b) As a supplemental report to the regular annual 157.19 actuarial valuation for the applicable public pension plan 157.20 prepared by the consulting actuary retained by the legislative 157.21 commission on pensions and retirement,there must bethe actuary 157.22 shall provide a comparison for each purchase showing the total 157.23 prior service credit payment received from all sources and the 157.24 increased public pension plan actuarial accrued liability 157.25 resulting from each purchase. 157.26 Subd. 7. [EXPIRATION OF PURCHASE PAYMENT DETERMINATION 157.27 PROCEDURE.] (a) This section expires and is repealed on July 1, 157.28 2003. 157.29 (b) Authority for any public pension plan to accept a prior 157.30 service credit payment that is calculated in a timely fashion 157.31 under this section expires on October 1, 2003. 157.32 Sec. 41. Minnesota Statutes 2000, section 356.551, is 157.33 amended to read: 157.34 356.551 [POST JULY 1,20012003, PRIOR SERVICE CREDIT 157.35 PURCHASE PAYMENT AMOUNT DETERMINATION PROCEDURE.] 157.36(a)Subdivision 1. [APPLICATION.] Unless the prior service 158.1 credit purchase authorization special law or general statute 158.2 provision explicitly specifies a different purchase payment 158.3 amount determination procedure, and if section 356.55 has 158.4 expired, this section governs the determination of the prior 158.5 service credit purchase payment amount of any prior service 158.6 credit purchase. 158.7(b)Subd. 2. [DETERMINATION.] The prior service credit 158.8 purchase amount is an amount equal to the actuarial present 158.9 value, on the date of payment, as calculated by the chief 158.10 administrative officer of the pension plan and reviewed by the 158.11 actuary retained by the legislative commission on pensions and 158.12 retirement, of the amount of the additional retirement annuity 158.13 obtained by the acquisition of the additional service credit in 158.14 this section. Calculation of this amount must be made using the 158.15 preretirement interest rate applicable to the public pension 158.16 plan specified in section 356.215, subdivision 4d, and the 158.17 mortality table adopted for the public pension plan. The 158.18 calculation must assume continuous future service in the public 158.19 pension plan until, and retirement at, the age at which the 158.20 minimum requirements of the fund for normal retirement or 158.21 retirement with an annuity unreduced for retirement at an early 158.22 age, including section 356.30, are met with the additional 158.23 service credit purchased. The calculation must also assume a 158.24 full-time equivalent salary, or actual salary, whichever is 158.25 greater, and a future salary history that includes annual salary 158.26 increases at the applicable salary increase rate for the plan 158.27 specified in section 356.215, subdivision 4d. Payment must be 158.28 made in one lump sum within one year of the prior service credit 158.29 authorization. Payment of the amount calculated under this 158.30 section must be made by the applicable eligible person. 158.31 However, the current employer or the prior employer may, at its 158.32 discretion, pay all or any portion of the payment amount that 158.33 exceeds an amount equal to the employee contribution rates in 158.34 effect during the period or periods of prior service applied to 158.35 the actual salary rates in effect during the period or periods 158.36 of prior service, plus interest at the rate of 8.5 percent a 159.1 year compounded annually from the date on which the 159.2 contributions would otherwise have been made to the date on 159.3 which the payment is made. If the employer agrees to payments 159.4 under thisparagraphsubdivision, the purchaser must make the 159.5 employee payments required under thisparagraphsubdivision 159.6 within 290 days of the prior service credit authorization. If 159.7 that employee payment is made, the employer payment under 159.8 thisparagraphsubdivision must be remitted to the chief 159.9 administrative officer of the public pension plan within 60 days 159.10 of receipt by the chief administrative officer of the employee 159.11 payments specified under thisparagraphsubdivision. 159.12(c)Subd. 3. [DOCUMENTATION.] The prospective purchaser 159.13 must provide any relevant documentation required by the chief 159.14 administrative officer of the public pension plan to determine 159.15 eligibility for the prior service credit under this section. 159.16(d)Subd. 4. [PAYMENT PRECONDITION FOR CREDIT GRANT.] 159.17 Service credit for the purchase period must be granted by the 159.18 public pension plan to the purchaser upon receipt of the 159.19 purchase payment amount specified inparagraph (b)subdivision 2. 159.20 Sec. 42. Minnesota Statutes 2001 Supplement, section 159.21 356.555, is amended to read: 159.22 356.555 [PARENTAL OR FAMILY LEAVE SERVICE CREDIT PURCHASE.] 159.23 Subdivision 1. [SERVICE CREDIT PURCHASE AUTHORIZATION.] 159.24 (a) Notwithstanding any provision to the contrary of the laws 159.25 governing a covered pension plan enumerated in subdivision 4, a 159.26 member of the pension plan who has at least three years of 159.27 allowable service covered by the applicable pension plan and who 159.28 was granted by the employer a parental leave of absence as 159.29 defined in paragraph (b), or who was granted by the employer a 159.30 family leave of absence as defined in paragraph (c), or who had 159.31 a parental or family-related break in employment, as defined in 159.32 paragraph (d), for which the person did not previously receive 159.33 service credit or for which the person did not receive or 159.34 purchase service credit from another defined benefit public 159.35 employee pension plan, is entitled to purchase the actual period 159.36 of the leave or of the break in service, up to five years, of 160.1 allowable service credit in the applicable retirement plan. The 160.2 purchase payment amount is governed by section 356.55. 160.3 (b) For purposes of this section, a parental leave of 160.4 absence is a temporary period of interruption of or separation 160.5 from active employment for the purposes of handling maternity or 160.6 paternity duties that has been approved by the employing unit 160.7 and that includes the right of reinstatement to employment. 160.8 (c) For purposes of this section, a family leave of absence 160.9 is a family leave under United States Code, title 42, section 160.10 12631, as amended. 160.11 (d) For purposes of this section, a parental or 160.12 family-related break in employment is a period following a 160.13 termination of active employment primarily for the purpose of 160.14 the birth of a child, the adoption of a child, or the provision 160.15 of care to a near relative or in-law, after which the person 160.16 returned to the prior employing unit or to an employing unit 160.17 covered by the same pension plan that provided retirement 160.18 coverage immediately prior to the termination of employment. 160.19 Subd. 2. [APPLICATION AND DOCUMENTATION.] (a) A person who 160.20 desires to purchase service credit under subdivision 1 must 160.21 apply for the service credit purchase with the chief 160.22 administrative officer of the enumerated pension plan. 160.23 (b) The application must include all necessary 160.24 documentation of the qualifications of the person to make the 160.25 purchase, signed written permission to allow the chief 160.26 administrative officer to request and receive necessary 160.27 verification of all applicable facts and eligibility 160.28 requirements, and any other relevant information that the chief 160.29 administrative officer may require. 160.30 Subd. 3. [SERVICE CREDIT GRANT.] Allowable and formula 160.31 service credit in the applicable enumerated pension plan for the 160.32 purchase period must be granted to the purchaser upon receipt of 160.33 the purchase payment amount calculated under section 356.55. 160.34 Payment of the purchase amount must be made before the person 160.35 retires. 160.36 Subd. 4. [COVERED PENSION PLANS.] This section applies to 161.1 the following pension plans: 161.2 (1) the general state employees retirement plan governed by 161.3 chapter 352; 161.4 (2) the correctional state employees retirement plan 161.5 governed by chapter 352; 161.6 (3) the generalpublicemployees retirement plan of the 161.7 public employees retirement association governed by chapter 353; 161.8 (4) the public employees police and fire plan governed by 161.9 chapter 353; 161.10 (5) the teachers retirement plan governed by chapter 354; 161.11 (6) the Minneapolis teachers retirement fund association 161.12 governed by chapter 354A; 161.13 (7) the Saint Paul teachers retirement fund association 161.14 governed by chapter 354A; 161.15 (8) the Duluth teachers retirement fund association 161.16 governed by chapter 354A; 161.17 (9) the Minneapolis employees retirement plan governed by 161.18 chapter 422A; 161.19 (10) the Minneapolis police relief association governed by 161.20 chapter 423B; and 161.21 (11) the Minneapolis fire department relief association 161.22 governed bysections 69.25 to 69.53 and augmented by Laws 1959,161.23chapters 213, 491, and 568, and other special local legislation161.24 chapter 423C. 161.25 COVERED SALARY LIMITATION 161.26 Sec. 43. Minnesota Statutes 2000, section 356.611, is 161.27 amended to read: 161.28 356.611 [LIMITATION ON PUBLIC EMPLOYEE SALARIES FOR PENSION 161.29 PURPOSES.] 161.30 Subdivision 1. [STATE SALARY LIMITATIONS.] (a) 161.31 Notwithstanding any provision of law, bylaws, articles of 161.32 incorporation, retirement and disability allowance plan 161.33 agreements, or retirement plan contracts to the contrary, the 161.34 covered salary for pension purposes for a plan participant of a 161.35 covered retirement fundunderenumerated in section 356.30, 161.36 subdivision 3, may not exceed 95 percent of the salary 162.1 established for the governor under section 15A.082 at the time 162.2 the person received the salary. 162.3 (b) This section does not apply to a salary paid: 162.4 (1) to the governor; 162.5 (2) to an employee of a political subdivision in a position 162.6 that is excluded from the limit as specified under section 162.7 43A.17, subdivision 9; or 162.8 (3) to a state employee in a position for which the 162.9 commissioner of employee relations has approved a salary rate 162.10 that exceeds 95 percent of the governor's salary. 162.11 (c) The limited covered salary determined under this 162.12 section must be used in determining employee and employer 162.13 contributions and in determining retirement annuities and other 162.14 benefits under the respective covered retirement fund and under 162.15 this chapter. 162.16 Subd. 2. [FEDERAL COMPENSATION LIMITS.] For members first 162.17 contributing to a covered pension plancovered underenumerated 162.18 in section 356.30, subdivision 3, on or after July 1, 1995, 162.19 compensation in excess of the limitation set forth in Internal 162.20 Revenue Code 401(a)(17)shallmay not be included for 162.21 contribution and benefit computation purposes. The compensation 162.22 limit set forth in Internal Revenue Code 401(a)(17) on June 30, 162.23 1993,shall applyapplies to members first contributing before 162.24 July 1, 1995. 162.25 MEMBER CONTRIBUTION EMPLOYER PICK UP 162.26 Sec. 44. Minnesota Statutes 2001 Supplement, section 162.27 356.62, is amended to read: 162.28 356.62 [PAYMENT OF EMPLOYEE CONTRIBUTION.] 162.29 (a) For purposes of any public pension plan, as defined in 162.30 section 365.615, paragraph (b), each employer shall pick up the 162.31 employee contributions required pursuant to law or the pension 162.32 plan for all salary payable after December 31, 1982. If the 162.33 United States Treasury department rules thatpursuant tounder 162.34 section 414(h) of the Internal Revenue Code of 1986, as amended 162.35 through December 31, 1992, that these picked up contributions 162.36 are not includable in the employee's adjusted gross income until 163.1 they are distributed or made available, then these picked up 163.2 contributionsshallmust be treated as employer contributions in 163.3 determining tax treatmentpursuant tounder the Internal Revenue 163.4 Code of 1986, as amended through December 31, 1992, and the 163.5 employer shall discontinue withholding federal income taxes on 163.6 the amount of these contributions. The employer shall pay these 163.7 picked up contributions from the same source of funds as is used 163.8 to pay the salary of the employee. The employer shall pick up 163.9 these employee contributions by a reduction in the cash salary 163.10 of the employee. 163.11 (b) Employee contributions that are picked upshallmust be 163.12 treated for all purposes of the public pension plan in the same 163.13 manner and to the same extent as employee contributions that 163.14 were made prior to the date on which the employee contributions 163.15 pick up began. The amount of the employee contributions that 163.16 are picked upshallmust be included in the salary upon which 163.17 retirement coverage is credited and retirement and survivor's 163.18 benefits are determined. For purposes of this section, 163.19 "employee" means any person covered by a public pension plan. 163.20 For purposes of this section, "employee contributions" include 163.21 any sums deducted from the employee's salary or wages or 163.22 otherwise paid in lieu thereof, regardless of whether they are 163.23 denominated contributions by the public pension plan. 163.24 (c) For any calendar year in which withholding has been 163.25 reducedpursuant tounder this section, the employing unit shall 163.26 supply each employee and the commissioner of revenue with an 163.27 information return indicating the amount of the employer's 163.28 picked-up contributions for the calendar year that were not 163.29 subject to withholding. This returnshallmust be provided to 163.30 the employee not later than January 31 of the succeeding 163.31 calendar year. The commissioner of revenue shall prescribe the 163.32 form of the return and the provisions of section 289A.12shall163.33 must apply to the extent not inconsistent with the provisions of 163.34 this section. 163.35 PENSION ASSET AND INVESTMENT 163.36 LIMITATIONS 164.1 Sec. 45. [356.63] [LIMITATION ON USE OF PUBLIC PENSION 164.2 PLAN ASSETS.] 164.3 (a) Money held by or credited to a public pension plan as 164.4 assets, including employer and employee contributions, state 164.5 aid, appropriations from the state or a governmental 164.6 subdivision, and accrued earnings on investments, constitutes a 164.7 dedicated fund. The dedicated fund may be used exclusively to 164.8 pay retirement annuities, service pensions, disability benefits, 164.9 survivor benefits, refunds of contributions, or other benefits 164.10 provided under the benefit plan document or documents governing 164.11 the public pension plan, and to pay reasonable administrative 164.12 expenses approved by the governing board of the public pension 164.13 plan or by another appropriate authority. No assets of a public 164.14 pension plan may be loaned or transferred to the state or a 164.15 governmental subdivision or be used to amortize an unfunded 164.16 actuarial accrued liability in another public pension plan or 164.17 fund, whether or not the plan providing the assets consolidates 164.18 or has consolidated with the plan receiving the assets. Nothing 164.19 in this section prohibits a public pension plan or the state 164.20 board of investment from investing the assets of a plan as 164.21 authorized by law, including the investment of the assets of 164.22 public pension plans by the state board of investment in a 164.23 commingled investment fund. 164.24 (b) A public pension plan for purposes of this section 164.25 means a pension plan or fund specified in section 356.20, 164.26 subdivision 2, or 356.30, subdivision 3, or a retirement or 164.27 pension plan or fund, including a supplemental retirement plan 164.28 or fund, established, maintained, or supported by a governmental 164.29 subdivision or public body whose revenues are derived from 164.30 taxation, fees, assessments, or other public sources. 164.31 Sec. 46. [356.64] [REAL ESTATE INVESTMENTS.] 164.32 (a) Notwithstanding any law to the contrary, any public 164.33 pension plan whose assets are not invested by the state board of 164.34 investment may invest its funds in Minnesota situs nonfarm real 164.35 estate ownership interests or loans secured by mortgages or 164.36 deeds of trust if the investment is consistent with section 165.1 356A.04. 165.2 (b) Except to the extent authorized in the case of the 165.3 Minneapolis employees retirement fund under section 422A.05, 165.4 subdivision 2c, paragraph (a), an investment otherwise 165.5 authorized by this section must also comply with the 165.6 requirements and limitations of section 11A.24, subdivision 6. 165.7 ABANDONED PENSION FUND AMOUNTS 165.8 Sec. 47. Minnesota Statutes 2001 Supplement, section 165.9 356.65, subdivision 1, is amended to read: 165.10 Subdivision 1. [DEFINITIONS.] For purposes of this 165.11 section, unless the context clearly indicates otherwise, each of 165.12 the following termsshall havehas themeaningsmeaning given to 165.13themit: 165.14 (a) "Public pension fund" means any public pension plan as 165.15 defined in section356.615356.63, paragraph (b), and any 165.16 Minnesota volunteer firefighters relief association which is 165.17 establishedpursuant tounder chapter 424A and governedpursuant165.18tounder sections 69.771 to 69.776. 165.19 (b) "Unclaimed public pension fund amounts" means any 165.20 amounts representing accumulated member contributions, any 165.21 outstanding unpaid annuity, service pension or other retirement 165.22 benefit payments, including those made on warrants issued by the 165.23 commissioner of finance, which have been issued and delivered 165.24 for more than six months prior to the date of the end of the 165.25 fiscal year applicable to the public pension fund, and any 165.26 applicable interest to the credit of: 165.27 (1) an inactive or former member of a public pension fund 165.28 who is not entitled to a defined retirement annuity and who has 165.29 not applied for a refund of those amounts within five years 165.30 after the last member contribution was made; or 165.31 (2) a deceased inactive or former member of a public 165.32 pension fund if no survivor is entitled to a survivor benefit 165.33 and no survivor, designated beneficiary or legal representative 165.34 of the estate has applied for a refund of those amounts within 165.35 five years after the date of death of the inactive or former 165.36 member. 166.1 Sec. 48. Minnesota Statutes 2000, section 356.65, 166.2 subdivision 2, is amended to read: 166.3 Subd. 2. [DISPOSITION OF ABANDONED AMOUNTS.] Any unclaimed 166.4 public pension fund amounts existing in any public pension 166.5 fundshall beare presumed to be abandoned, butshallare not 166.6besubject to the provisions of sections 345.31 to 345.60. 166.7 Unless the benefit plan of the public pension fund specifically 166.8 provides for a different disposition of unclaimed or abandoned 166.9 funds or amounts, any unclaimed public pension fund 166.10 amountsshallcancel andshallmust be credited to the public 166.11 pension fund. If the unclaimed public pension fund amount 166.12 exceeds $25 and the inactive or former member again becomes a 166.13 member of the applicable public pensionfundplan or applies for 166.14 a retirement annuitypursuant tounder section 3A.12, 352.72, 166.15 352B.30, 352C.051, 353.71, 354.60, 356.30, or 422A.16, 166.16 subdivision 8, whicheveris applicable,applies, the canceled 166.17 amountshallmust be restored to the credit of the person. 166.18 HEALTH INSURANCE WITHHOLDING 166.19 Sec. 49. Minnesota Statutes 2000, section 356.87, is 166.20 amended to read: 166.21 356.87 [HEALTH INSURANCE WITHHOLDING.] 166.22 (a) Upon authorization of a person entitled to receive a 166.23 retirement annuity, disability benefit or survivor benefit, the 166.24 executive director of a public pension fundlistedenumerated in 166.25 section 356.20, subdivision 2, shall withhold health insurance 166.26 premium amounts from the retirement annuity, disability benefit 166.27 or survivor benefit, and shall pay the premium amounts to the 166.28 public employees insurance program. 166.29 (b) The public employees insurance program shall reimburse 166.30 a public pension fund for the administrative expense of 166.31 withholding the premium amounts and shall assume liability for 166.32 the failure of a public pension fund to properly withhold the 166.33 premium amounts. 166.34 RETIREMENT PLAN 166.35 ADMINISTRATION 166.36 Sec. 50. [356B.05] [PUBLIC PENSION ADMINISTRATION 167.1 LEGISLATION.] 167.2 (a) Proposed administrative legislation recommended by or 167.3 on behalf of the Minnesota state retirement system, the public 167.4 employees retirement association, the teachers retirement 167.5 association, the Minneapolis employees retirement fund, or a 167.6 first class city teachers retirement fund association must be 167.7 presented to the legislative commission on pensions and 167.8 retirement, the state and local governmental operations 167.9 committee of the senate, and the governmental operations and 167.10 veterans affairs policy committee of the house of 167.11 representatives on or before October 1 of each year in order for 167.12 the proposed administrative legislation to be acted upon during 167.13 the upcoming legislative session. The executive director or the 167.14 deputy executive director of the legislative commission on 167.15 pensions and retirement shall provide written comments on the 167.16 proposed provisions to the public pension plans by November 15 167.17 of each year. 167.18 (b) Proposed administrative legislation recommended by or 167.19 on behalf of a public employee pension plan or system under 167.20 paragraph (a) must address provisions: 167.21 (1) authorizing allowable service credit for leaves of 167.22 absence and related circumstances; 167.23 (2) governing offsets or deductions from the amount of 167.24 disability benefits; 167.25 (3) authorizing the purchase of allowable service credit 167.26 for prior uncredited periods; 167.27 (4) governing subsequent employment earnings by reemployed 167.28 annuitants; and 167.29 (5) authorizing retroactive effect for retirement annuity 167.30 or benefit applications. 167.31 (c) Where possible and desirable, taking into account the 167.32 differences among the public pension plans in existing law and 167.33 the unique characteristics of the individual public pension fund 167.34 memberships, uniform provisions relating to paragraph (b) for 167.35 all applicable public pension plans must be presented for 167.36 consideration during the legislative session. Supporting 168.1 documentation setting forth the policy rationale for each set of 168.2 uniform provisions must accompany the proposed administrative 168.3 legislation. 168.4 Sec. 51. [356B.10] [PUBLIC PENSION FACILITIES.] 168.5 Subdivision 1. [DEFINITIONS.] (a) The definitions in this 168.6 subdivision apply to this section. 168.7 (b) "Boards" mean the board of directors of the Minnesota 168.8 state retirement system, the board of trustees of the public 168.9 employees retirement association, and the board of trustees of 168.10 the teachers retirement association. 168.11 (c) "Commissioner" means the commissioner of administration. 168.12 Subd. 2. [BUILDING; RELATED FACILITIES.] (a) The 168.13 commissioner of administration may provide a building and 168.14 related facilities to be jointly occupied by the board of 168.15 directors of the Minnesota state retirement system, the board of 168.16 trustees of the public employees retirement association, and the 168.17 board of trustees of the teachers retirement association for the 168.18 administration of their public pension systems. 168.19 (b) Design of the facilities is not subject to section 168.20 16B.33. The competitive acquisition process set forth in 168.21 chapter 16C does not apply if the process set forth in 168.22 subdivision 3 is followed. 168.23 (c) The boards and the commissioner must submit the plans 168.24 for a public pension facility under this section to the chair of 168.25 the house ways and means committee and to the chair of the 168.26 senate state government finance committee for their approval 168.27 before the plans are implemented. 168.28 Subd. 3. [CONTRACTING PROCEDURES.] (a) The commissioner 168.29 may enter into a contract for facilities with a contractor to 168.30 furnish the architectural, engineering, and related services as 168.31 well as the labor, materials, supplies, equipment, and related 168.32 construction services on the basis of a request for 168.33 qualifications and competitive responses received through a 168.34 request for proposals process that must include the items listed 168.35 in paragraphs (b) to (i). 168.36 (b) Before issuing a request for qualifications and a 169.1 request for proposals, the commissioner, with the assistance of 169.2 the boards, shall prepare performance criteria and 169.3 specifications that include: 169.4 (1) a general floor plan or layout indicating the general 169.5 dimensions of the public building and space requirements; 169.6 (2) design criteria for the exterior and site area; 169.7 (3) performance specifications for all building systems and 169.8 components to ensure quality and cost efficiencies; 169.9 (4) conceptual floor plans for systems space; 169.10 (5) preferred types of interior finishes, styles of 169.11 windows, lighting and outlets, doors, and features such as 169.12 built-in counters and telephone wiring; 169.13 (6) mechanical and electrical requirements; 169.14 (7) special interior features required; and 169.15 (8) a completion schedule. 169.16 (c) The commissioner shall first solicit statements of 169.17 qualifications from eligible contractors and select more than 169.18 one qualified contractor based upon experience, technical 169.19 competence, past performance, capability to perform, and other 169.20 appropriate facts. Contractors selected under this process must 169.21 be, employ, or have as a partner, member, coventurer, or 169.22 subcontractor, persons licensed and registered under chapter 326 169.23 to provide the services required to design and complete the 169.24 project. The commissioner does not have to select any of the 169.25 respondents if none reasonably fulfill the criteria set forth in 169.26 this paragraph. 169.27 (d) The contractors selected shall be asked to respond to a 169.28 request for proposals. Responses must include site plans, 169.29 design concept, elevation, statement of material to be used, 169.30 floor layouts, a detailed development budget, and a total cost 169.31 to complete the project. The proposal must indicate that the 169.32 contractor obtained at least two proposals from subcontractors 169.33 for each item of work and must set forth how the subcontractors 169.34 were selected. The commissioner, with the assistance of the 169.35 boards, shall evaluate the proposals based upon design, cost, 169.36 quality, aesthetics, and the best overall value to the state 170.1 pension funds. The commissioner need not select any of the 170.2 proposals submitted and reserves the right to reject any and all 170.3 proposals, and may terminate the process or revise the request 170.4 for proposals and solicit new proposals if the commissioner 170.5 determines that the best interests of the pension funds would be 170.6 better served by doing so. Proposals submitted are nonpublic 170.7 data until the contract is awarded. 170.8 (e) The contractor selected must comply with sections 170.9 574.26 to 574.261. Before executing a final contract, the 170.10 contractor selected shall certify a firm construction price and 170.11 completion date. 170.12 (f) The commissioner may consider building sites in the 170.13 city of St. Paul and surrounding suburbs. 170.14 (g) Any land, building, or facility leased, constructed, or 170.15 acquired and any leasehold interest acquired under this section 170.16 must be held by the state in trust for the three retirement 170.17 systems as tenants in common. Each retirement system fund must 170.18 consider its interest as a fixed asset of its pension fund in 170.19 accordance with governmental accounting standards. 170.20 (h) The commissioner may lease to another governmental 170.21 subdivision, to a private company under contract with the state 170.22 board of investment, or with the board of directors of the 170.23 Minnesota state retirement system, whichever applies, to provide 170.24 deferred compensation services under section 352.96, any portion 170.25 of the funds' building and lands that is not required for their 170.26 direct use upon terms and conditions they deem to be in the best 170.27 interest of the pension funds. Any income accruing from the 170.28 rentals must be separately accounted for and utilized to offset 170.29 ongoing administrative expenses and any excess must be carried 170.30 forward for future administrative expenses. The commissioner 170.31 may also enter into lease agreements for the establishment of 170.32 satellite offices should the boards find them to be necessary in 170.33 order to assure their members reasonable access to their 170.34 services. The commissioner may lease under section 16B.24 any 170.35 portion of the facilities not required for the direct use of the 170.36 boards. 171.1 (i) The boards shall formulate and adopt a written working 171.2 agreement that sets forth the nature of each retirement system's 171.3 ownership interest, the duties and obligations of each system 171.4 toward the construction, operation, and maintenance costs of its 171.5 facilities, and identifies one retirement fund to serve as 171.6 manager for operating and maintenance purposes. The boards may 171.7 contract with independent third parties for maintenance-related 171.8 activities, services, and supplies, and may use the services of 171.9 the department of administration where economically feasible to 171.10 do so. If the boards cannot agree or resolve a dispute about 171.11 operations or maintenance of the facilities, they may request 171.12 the commissioner of administration to appoint a representative 171.13 from the department's real estate management division to serve 171.14 as arbitrator of the dispute with authority to issue a written 171.15 resolution of the dispute. 171.16 Subd. 4. [REVENUE BONDS.] The commissioner of finance, on 171.17 request of the governor, may sell and issue revenue bonds in an 171.18 aggregate principal amount up to $38,000,000 to achieve the 171.19 purposes described in subdivisions 1 and 2, plus the amount 171.20 needed to pay issuance costs and interest costs and to establish 171.21 necessary reserves to secure the bonds. The commissioner of 171.22 finance may issue bonds for the purpose of refunding bonds 171.23 issued under this subdivision. The bonds may be sold and issued 171.24 on terms and in a manner the commissioner of finance determines 171.25 to be in the best interests of the state. The proceeds of the 171.26 bonds must be credited to a bond proceeds account in the pension 171.27 building fund which the commissioner of finance must create in 171.28 the state treasury. 171.29 Subd. 5. [SECURITY.] The boards may pledge any or all 171.30 assets of the boards as security for the bonds. The bonds and 171.31 the interest on them must be paid solely from and secured by all 171.32 assets of the boards pledged and appropriated for these purposes 171.33 to the debt service fund created in subdivision 6 and any 171.34 investment income on the fund and any reserve established for 171.35 this purpose. The bonds are not public debt, and the full 171.36 faith, credit, and taxing powers of the state are not pledged 172.1 for their payment. The bonds and the interest on them must not 172.2 be paid, directly or indirectly, in whole or in part, from a tax 172.3 of statewide application on any class of property, income, 172.4 transaction, or privilege. 172.5 Subd. 6. [DEBT SERVICE FUND.] There is established in the 172.6 state treasury a separate and special pension building debt 172.7 service fund. Money in the funds managed by the boards is 172.8 appropriated to the boards for transfer to the pension building 172.9 debt service fund. Money appropriated and transferred to the 172.10 fund and investment income on it on hand or required to be 172.11 transferred to the fund must be used and is irrevocably 172.12 appropriated to pay when due the principal of and interest on 172.13 the bonds authorized in subdivision 4. 172.14 Subd. 7. [COVENANTS; AGREEMENTS.] The commissioner of 172.15 finance may, for and on behalf of the state, enter into 172.16 covenants and agreements not inconsistent with subdivisions 1 to 172.17 6 as may be necessary or desirable to facilitate the sale and 172.18 issuance of the bonds on terms favorable to the state, 172.19 including, but not limited to, covenants and agreements relating 172.20 to the payment of and security for the bonds, tax exemption, and 172.21 disclosure of information required by federal and state 172.22 securities laws. The covenants and agreements of the 172.23 commissioner of finance constitute an enforceable contract of 172.24 the state and the state pledges and agrees with the holders of 172.25 any bonds that the state will not limit or alter the rights 172.26 vested in the commissioner of finance to fulfill the terms of 172.27 the covenants or agreements made with the holders of the bonds, 172.28 or in any way impair the rights and remedies of the holders 172.29 until the bonds, together with the interest on them, with 172.30 interest on any unpaid installments of interest, and all costs 172.31 and expenses in connection with any action or proceeding by or 172.32 on behalf of the holders, are fully met and discharged. The 172.33 commissioner of finance may include this pledge and agreement of 172.34 the state in any covenant or agreement with the holders of the 172.35 bonds. Sections 16A.672 and 16A.675 apply to the bonds. 172.36 Sec. 52. [CROSS-REFERENCE CHANGES.] 173.1 In the next and subsequent editions of Minnesota Statutes, 173.2 the revisor of statutes shall, in each section indicated in 173.3 column A, replace the cross-reference specified in column B with 173.4 the cross-reference set forth in column C: 173.5 column A column B column C 173.6 3.751, subd. 1 356.89 356B.10 173.7 3A.02, subd. 1 356.215, subd. 4d 356.215, subd. 8 173.8 3A.02, subd. 4 356.215, subd. 4d 356.215, subd. 8 173.9 3A.11, subd. 1 356.215, subd. 4d 356.215, subd. 8 173.10 11A.18, subd. 6 356.215, subd. 4d 356.215, subd. 8 173.11 11A.18, subd. 9 356.215, subd. 4d 356.215, subd. 8 173.12 11A.18, subd. 11 356.215, subd. 4d 356.215, subd. 8 173.13 13.631, subd. 2 356.80 356.49 173.14 69.77, subd. 2b 356.215, subds. 4 356.215, subds. 4 to 15 173.15 to 4k 173.16 69.77, subd. 2b 356.215, subd. 4d 356.215, subd. 8 173.17 69.773, subd. 2 356.215, subd. 4d 356.215, subd. 8 173.18 69.773, subd. 4 356.215, subd. 4d 356.215, subd. 8 173.19 352.01, subd. 12 356.215, subd. 4d 356.215, subd. 8 173.20 352.115, subd. 3 356.119, subd. 1 356.315, subd. 1 173.21 352.115, subd. 3 356.119, subd. 2 356.315, subd. 2 173.22 352.115, subd. 10 356.58 356.47 173.23 352.119, subd. 2 356.215, subd. 4d 356.215, subd. 8 173.24 352.72, subd. 2 356.215, subd. 4d 356.215, subd. 8 173.25 352.87, subd. 3 356.119, subd. 2a 356.315, subd. 2a 173.26 352.91, subd. 5 356.215, subd. 4d 356.215, subd. 8 173.27 352.93, subd. 2 356.119, subd. 5 356.315, subd. 5 173.28 352.95, subd. 1 356.119, subd. 5 356.315, subd. 5 173.29 352B.08, subd. 2 356.119, subd. 6 356.315, subd. 6 173.30 352B.08, subd. 3 356.215, subd. 4d 356.215, subd. 8 173.31 352B.10, subd. 1 356.119, subd. 6 356.315, subd. 6 173.32 352B.26, subd. 3 356.215, subd. 4d 356.215, subd. 8 173.33 352B.30, subd. 4 356.215, subd. 4d 356.215, subd. 8 173.34 352C.031, subd. 4 356.215, subd. 4d 356.215, subd. 8 173.35 352C.033 356.215, subd. 4d 356.215, subd. 8 173.36 353.01, subd. 14 356.215, subd. 4d 356.215, subd. 8 174.1 353.03, subd. 3 356.215, subd. 4, 356.215, subd. 8 174.2 clause (4) 174.3 353.271, subd. 2 356.215, subd. 4d 356.215, subd. 8 174.4 353.29, subd. 3 356.119, subd. 3 356.315, subd. 3 174.5 353.29, subd. 3 356.119, subd. 4 356.315, subd. 4 174.6 353.29, subd. 3 356.119, subd. 1 356.315, subd. 1 174.7 353.29, subd. 3 356.119, subd. 2 356.315, subd. 2 174.8 353.29, subd. 4 356.371, subd. 3 356.46, subd. 3 174.9 353.37, subd. 3a 356.58 356.47 174.10 353.651, subd. 3 356.119, subd. 6 356.315, subd. 6 174.11 353.656, subd. 1 356.119, subd. 6 356.315, subd. 6 174.12 353.665, subd. 8 356.215, subd. 4d 356.215, subd. 8 174.13 353.71, subd. 2 356.215, subd. 4d 356.215, subd. 8 174.14 353A.08, subd. 1 356.215, subd. 4d 356.215, subd. 8 174.15 353A.08, subd. 2 356.215, subd. 4d 356.215, subd. 8 174.16 353A.09, subd. 2 356.215, subd. 4d 356.215, subd. 8 174.17 353A.09, subd. 5 356.215, subd. 4d 356.215, subd. 8 174.18 353E.04, subd. 3 356.119, subd. 5a 356.315, subd. 5a 174.19 353E.06, subd. 1 356.119, subd. 5a 356.315, subd. 5a 174.20 354.05, subd. 7 356.215, subd. 4d 356.215, subd. 8 174.21 354.07, subd. 1 356.215, subd. 4d 356.215, subd. 8 174.22 354.44, subd. 2 356.215, subd. 4d 356.215, subd. 8 174.23 354.44, subd. 5 356.58 356.47 174.24 354.44, subd. 6 356.119, subd. 1 356.315, subd. 1 174.25 354.44, subd. 6 356.119, subd. 2 356.315, subd. 2 174.26 354.44, subd. 6 356.119, subd. 3 356.315, subd. 3 174.27 354.44 356.119 356.315 174.28 354.45, subd. 2 356.215, subd. 4d 356.215, subd. 8 174.29 354.48, subd. 3 356.215, subd. 4d 356.215, subd. 8 174.30 354.55, subd. 11 356.215, subd. 4d 356.215, subd. 8 174.31 354.63, subd. 2 356.215, subd. 4d 356.215, subd. 8 174.32 354A.011, subd. 3 356.215, subd. 4d 356.215, subd. 8 174.33 354A.026 356.215, subd. 4g 356.215, subd. 11 174.34 354A.105 356.215, subd. 4d 356.215, subd. 8 174.35 354A.12, subd. 1a 356.215, subd. 4d 356.215, subd. 8 174.36 354A.31, subd. 1a 356.371, subd. 3 356.46, subd. 3 175.1 354A.31, subd. 3 356.58 356.47 175.2 354A.31, subd. 4 356.119, subd. 1 356.315, subd. 1 175.3 354A.31, subd. 4 356.119, subd. 2 356.315, subd. 2 175.4 354A.31, subd. 4a 356.119, subd. 1 356.315, subd. 1 175.5 354A.31, subd. 4a 356.119, subd. 2 356.315, subd. 2 175.6 354A.34 356.215, subd. 4d 356.215, subd. 8 175.7 422A.01, subd. 6 356.215, subd. 4d 356.215, subd. 8 175.8 422A.06, subd. 5 356.215, subd. 4d 356.215, subd. 8 175.9 422A.08, subd. 5a 356.215, subd. 4d 356.215, subd. 8 175.10 422A.101, subd. 3 356.865 356.43 175.11 422A.15, subd. 2 356.215, subd. 4d 356.215, subd. 8 175.12 422A.15, subd. 3 356.215, subd. 4d 356.215, subd. 8 175.13 422A.16, subd. 2 356.215, subd. 4d 356.215, subd. 8 175.14 422A.17 356.215, subd. 4d 356.215, subd. 8 175.15 422A.23, subd. 12 356.215, subd. 4d 356.215, subd. 8 175.16 423A.02, subd. 1 356.215, subd. 4, 356.215, subd. 8 175.17 clause (4) 175.18 490.121, subd. 20 356.215, subd. 4d 356.215, subd. 8 175.19 490.121, subd. 22 356.119, subd. 7 356.315, subd. 7 175.20 490.124, subd. 1 356.119, subd. 7 356.315, subd. 7 175.21 490.124, subd. 1 356.119, subd. 8 356.315, subd. 8 175.22 490.124, subd. 5 356.215, subd. 4d 356.215, subd. 8 175.23 Sec. 53. [REPEALER.] 175.24 Subdivision 1. [REPEALER OF OBSOLETE 175.25 PROVISIONS.] Minnesota Statutes 2000, sections 356.325; 356.35; 175.26 356.36; 356.37; 356.38; 356.39; 356.45; 356.451; 356.452; 175.27 356.453; 356.454; and 356.455, are repealed. 175.28 Subd. 2. [REPEALER OF PROVISIONS REORGANIZED.] (a) 175.29 Minnesota Statutes 2000, sections 356.19; 356.305; 356.306; 175.30 356.31; 356.371, subdivisions 2 and 3; 356.372; 356.615; 356.71; 175.31 356.80; 356.81; 356.86; 356.865; 356.88; and 356.89, are 175.32 repealed. 175.33 (b) Minnesota Statutes 2001 Supplement, sections 356.371, 175.34 subdivision 1; and 356.866, are repealed. 175.35 Subd. 3. [REPEALER TO RESOLVE REVISOR NOTE.] Laws 1997, 175.36 chapter 233, article 1, section 58, is repealed. 176.1 Sec. 54. [EFFECTIVE DATE.] 176.2 (a) Sections 1 to 53 are effective July 1, 2002. 176.3 (b) Section 51 is the continuation of the public pension 176.4 facility authority previously contained in Minnesota Statutes 176.5 2000, section 356.89, and may not be considered a grant of 176.6 authority to build or bond for a second building. 176.7 ARTICLE 12 176.8 JOINT RETIREMENT PLAN 176.9 BUILDING LEASE AUTHORITY 176.10 Section 1. Minnesota Statutes 2000, section 356.89, 176.11 subdivision 3, is amended to read: 176.12 Subd. 3. [CONTRACTING PROCEDURES.] (a) The commissioner 176.13 may enter into a contract for facilities with a contractor to 176.14 furnish the architectural, engineering, and related services as 176.15 well as the labor, materials, supplies, equipment, and related 176.16 construction services on the basis of a request for 176.17 qualifications and competitive responses received through a 176.18 request for proposals process that must include the items listed 176.19 in paragraphs (b) to (i). 176.20 (b) Before issuing a request for qualifications and a 176.21 request for proposals, the commissioner, with the assistance of 176.22 the boards, shall prepare performance criteria and 176.23 specifications that include: 176.24 (1) a general floor plan or layout indicating the general 176.25 dimensions of the public building and space requirements; 176.26 (2) design criteria for the exterior and site area; 176.27 (3) performance specifications for all building systems and 176.28 components to ensure quality and cost efficiencies; 176.29 (4) conceptual floor plans for systems space; 176.30 (5) preferred types of interior finishes, styles of 176.31 windows, lighting and outlets, doors, and features such as 176.32 built-in counters and telephone wiring; 176.33 (6) mechanical and electrical requirements; 176.34 (7) special interior features required; and 176.35 (8) a completion schedule. 176.36 (c) The commissioner shall first solicit statements of 177.1 qualifications from eligible contractors and select more than 177.2 one qualified contractor based upon experience, technical 177.3 competence, past performance, capability to perform, and other 177.4 appropriate facts. Contractors selected under this process must 177.5 be, employ, or have as a partner, member, coventurer, or 177.6 subcontractor, persons licensed and registered under chapter 326 177.7 to provide the services required to design and complete the 177.8 project. The commissioner does not have to select any of the 177.9 respondents if none reasonably fulfill the criteria set forth in 177.10 this paragraph. 177.11 (d) The contractors selected shall be asked to respond to a 177.12 request for proposals. Responses must include site plans, 177.13 design concept, elevation, statement of material to be used, 177.14 floor layouts, a detailed development budget, and a total cost 177.15 to complete the project. The proposal must indicate that the 177.16 contractor obtained at least two proposals from subcontractors 177.17 for each item of work and must set forth how the subcontractors 177.18 were selected. The commissioner, with the assistance of the 177.19 boards, shall evaluate the proposals based upon design, cost, 177.20 quality, aesthetics, and the best overall value to the state 177.21 pension funds. The commissioner need not select any of the 177.22 proposals submitted and reserves the right to reject any and all 177.23 proposals, and may terminate the process or revise the request 177.24 for proposals and solicit new proposals if the commissioner 177.25 determines that the best interests of the pension funds would be 177.26 better served by doing so. Proposals submitted are nonpublic 177.27 data until the contract is awarded. 177.28 (e) The contractor selected must comply with sections 177.29 574.26 to 574.261. Before executing a final contract, the 177.30 contractor selected shall certify a firm construction price and 177.31 completion date. 177.32 (f) The commissioner may consider building sites in the 177.33 city of St. Paul and surrounding suburbs. 177.34 (g) Any land, building, or facility leased, constructed, or 177.35 acquired and any leasehold interest acquired under this section 177.36 must be held by the state in trust for the three retirement 178.1 systems as tenants in common. Each retirement system fund must 178.2 consider its interest as a fixed asset of its pension fund in 178.3 accordance with governmental accounting standards. 178.4 (h) The commissioner may lease to another governmental 178.5 subdivision, or to a private company under contract with the 178.6 state board of investment or with the board of directors of the 178.7 Minnesota state retirement system, whichever applies, to provide 178.8 deferred compensation services under section 352.96, any portion 178.9 of the funds' building and lands that is not required for their 178.10 direct use upon terms and conditions they deem to be in the best 178.11 interest of the pension funds. Any income accruing from the 178.12 rentals must be separately accounted for and utilized to offset 178.13 ongoing administrative expenses and any excess must be carried 178.14 forward for future administrative expenses. The commissioner 178.15 may also enter into lease agreements for the establishment of 178.16 satellite offices should the boards find them to be necessary in 178.17 order to assure their members reasonable access to their 178.18 services. The commissioner may lease under section 16B.24 any 178.19 portion of the facilities not required for the direct use of the 178.20 boards. 178.21 (i) The boards shall formulate and adopt a written working 178.22 agreement that sets forth the nature of each retirement system's 178.23 ownership interest, the duties and obligations of each system 178.24 toward the construction, operation, and maintenance costs of its 178.25 facilities, and identifies one retirement fund to serve as 178.26 manager for operating and maintenance purposes. The boards may 178.27 contract with independent third parties for maintenance-related 178.28 activities, services, and supplies, and may use the services of 178.29 the department of administration where economically feasible to 178.30 do so. If the boards cannot agree or resolve a dispute about 178.31 operations or maintenance of the facilities, they may request 178.32 the commissioner of administration to appoint a representative 178.33 from the department's real estate management division to serve 178.34 as arbitrator of the dispute with authority to issue a written 178.35 resolution of the dispute. 178.36 Sec. 2. [EFFECTIVE DATE.] 179.1 Section 1 is effective July 1, 2002. 179.2 ARTICLE 13 179.3 VOLUNTEER FIREFIGHTER RELIEF 179.4 ASSOCIATIONS SERVICE PENSION ELIGIBILITY 179.5 Section 1. Minnesota Statutes 2000, section 424A.02, 179.6 subdivision 1, is amended to read: 179.7 Subdivision 1. [AUTHORIZATION.] (a) A relief association, 179.8 when its articles of incorporation or bylaws so provide, may pay 179.9 out of the assets of its special fund a service pension to each 179.10 of its members who: (1) separates from active service with the 179.11 fire department; (2) reaches age 50; (3) completes at least five 179.12 years of active service as an active member of the municipal 179.13 fire department to which the relief association is associated; 179.14 (4) completes at least five years of active membership with the 179.15 relief association before separation from active service; and 179.16 (5) complies with any additional conditions as to age, service, 179.17 and membership that are prescribed by the bylaws of the relief 179.18 association. A service pension computed under this section may 179.19 be prorated monthly for fractional years of service, if the 179.20 bylaws or articles of incorporation of the relief association so 179.21 provide. The service pension may be paid whether or not the 179.22 municipality or nonprofit firefighting corporation to which the 179.23 relief association is associated qualifies for fire state aid 179.24 under chapter 69. 179.25 (b) In the case of a member who has completed at least five 179.26 years of active service as an active member of the fire 179.27 department to which the relief association is associated on the 179.28 date that the relief association is established and 179.29 incorporated, the requirement that the member complete at least 179.30 five years of active membership with the relief association 179.31 before separation from active service may be waived by the board 179.32 of trustees of the relief association if the member completes at 179.33 least five years of inactive membership with the relief 179.34 association before the payment of the service pension. During 179.35 the period of inactive membership, the member is not entitled to 179.36 receive disability benefit coverage, is not entitled to receive 180.1 additional service credit towards computation of a service 180.2 pension, and is considered to have the status of a person 180.3 entitled to a deferred service pension under subdivision 7. 180.4 (c) No municipality or nonprofit firefighting corporation 180.5 may delegate the power to take final action in setting a service 180.6 pension or ancillary benefit amount or level to the board of 180.7 trustees of the relief association or to approve in advance a 180.8 service pension or ancillary benefit amount or level equal to 180.9 the maximum amount or level that this chapter would allow rather 180.10 than a specific dollar amount or level. 180.11 (d) No relief association as defined in section 424A.001, 180.12 subdivision 4, may pay a service pension or disability benefit 180.13 to a former member of the relief association if that person has 180.14 not separated from active service with the fire department to 180.15 which the relief association is directly associated, unless: 180.16 (1) the person is employed subsequent to retirement by the 180.17 municipality or the independent nonprofit firefighting 180.18 corporation, whichever applies, to perform duties within the 180.19 municipal fire department or corporation on a full-time basis; 180.20 (2) the governing body of the municipality or of the 180.21 corporation has filed its determination with the board of 180.22 trustees of the relief association that the person's experience 180.23 with and service to the fire department in that person's 180.24 full-time capacity would be difficult to replace; and 180.25 (3) the bylaws of the relief association were amended to 180.26 provide for the payment of a service pension or disability 180.27 benefit for such full-time employees. 180.28 ARTICLE 14 180.29 ADDITIONAL CLARIFICATIONS 180.30 Section 1. [CLARIFICATION OF APPROPRIATION.] 180.31 Subdivision 1. [PURPOSE.] This section clarifies treatment 180.32 extended to an individual specified in Laws 2001, chapter 169, 180.33 section 5, and is intended to eliminate any potential windfall 180.34 to the public employees retirement association police and fire 180.35 plan fund and the public employees retirement association 180.36 general employees plan fund that may result from that session 181.1 law. 181.2 Subd. 2. [ELIGIBILITY.] The eligible individual is an 181.3 individual specified in Laws 2001, chapter 169, section 5, who 181.4 was an assistant commissioner in the department of public safety 181.5 from April 30, 1994, through May 31, 1998, while on an 181.6 intergovernmental mobility assignment or assignments to the 181.7 state from the city of St. Paul police department. 181.8 Subd. 3. [SALARY INCREMENT.] The salary increment in any 181.9 applicable year or portion of a year is the difference between 181.10 the salary the eligible individual in subdivision 2 received as 181.11 assistant commissioner and the salary upon which pension 181.12 contributions were made for that year or portion of a year. 181.13 Subd. 4. [BENEFIT COMPUTATIONS.] The retirement benefits, 181.14 or disability benefits, if applicable, under the public 181.15 employees retirement association police and fire plan and the 181.16 public employees retirement association general plan are to be 181.17 computed based on plan law applicable to the eligible individual 181.18 under subdivision 2 given the eligible individual's termination 181.19 of service date or dates, or the disability benefit accrual date 181.20 or dates as applicable, except for inclusion of salary 181.21 increments under subdivision 3 for purposes of determining 181.22 average salary under sections 353.29, subdivision 2, and 181.23 353.651, subdivision 2. 181.24 Subd. 5. [ANNUITY RESERVE COMPARISONS.] The executive 181.25 director of the public employees retirement association is to 181.26 determine the increased actuarial reserves, if any, needed to 181.27 support the annuities from the two applicable public employees 181.28 retirement association retirement funds on the effective date of 181.29 retirement or disability from the applicable plans due to this 181.30 section. 181.31 Subd. 6. [COMPARISON TO APPROPRIATION AMOUNTS.] The total 181.32 amount determined under subdivision 5, if zero or positive, is 181.33 to be subtracted from the total value of any appropriation 181.34 received by the public employees retirement association under 181.35 Laws 2001, chapter 169, section 5, on the date computations 181.36 under subdivision 5 occur assuming 8.5 percent interest 182.1 compounded annually from the date the appropriation is received 182.2 until the computation date under subdivision 5. 182.3 Subd. 7. [DISPOSITION OF EXCESS.] The amount determined 182.4 under subdivision 6, net of the value of any foregone employer 182.5 contributions, including 8.5 percent interest compounded 182.6 annually relating to the salary increments under subdivision 3, 182.7 if any, is to be redeposited within 30 days following the date 182.8 of that determination in the state's general fund. 182.9 Subd. 8. [INTERNAL ALLOCATIONS.] Notwithstanding any law 182.10 to the contrary, the executive director is authorized to place 182.11 amounts received, if any, due to Laws 2001, chapter 169, section 182.12 5, in the public employees retirement association general plan 182.13 fund or the public employees retirement association police and 182.14 fire plan fund, or to allocate amounts between these funds as 182.15 deemed appropriate. Following the determinations required by 182.16 this section, the executive director may again reallocate 182.17 amounts between the two funds to reflect a reasonable allocation 182.18 of the remaining net appropriation amount. 182.19 Subd. 9. [CONTRIBUTION RATIFICATION.] Contributions and 182.20 interest paid to the association relating to the salary 182.21 increments referred to in subdivision 3 are authorized for 182.22 deposit in the public employees retirement association police 182.23 and fire plan fund and are ratified. 182.24 Sec. 2. [LUMP SUM PRE-1973 RETIREE POST RETIREMENT 182.25 ADJUSTMENT IN CERTAIN INSTANCES.] 182.26 (a) Notwithstanding any provision of Minnesota Statutes 182.27 2001 Supplement, section 356.866, or Minnesota Statutes, section 182.28 356.431, to the contrary, an eligible person described in 182.29 paragraph (b) may elect to receive the pre-1973 post retirement 182.30 adjustment in a lump sum payment rather than as an annuity 182.31 increase. The election must be made before September 1, 2002, 182.32 and is irrevocable by the annuitant or benefit recipient. For 182.33 the December 2002 lump sum payment, the amount must be the total 182.34 of the monthly amounts remaining unpaid to the annuitant or the 182.35 benefit recipient after the election. 182.36 (b) An eligible person is a person who: 183.1 (1) was born on December 5, 1908; 183.2 (2) is the survivor of a deceased annuitant of the general 183.3 employees retirement plan of the public employees retirement 183.4 association who was born on March 22, 1904, who retired on May 183.5 1, 1969, and who died on April 9, 1980; and 183.6 (3) waived an annuity from the general employees retirement 183.7 plan of the public employees retirement association in favor of 183.8 a surviving spouse benefit on May 1, 1980. 183.9 Sec. 3. [EFFECTIVE DATE.] 183.10 Sections 1 and 2 are effective the day following final 183.11 enactment. 183.12 ARTICLE 15 183.13 COORDINATED PROGRAM OF LEGISLATORS RETIREMENT PLAN; 183.14 SOCIAL SECURITY REFERENDUM 183.15 Section 1. [3A.15] [COORDINATED PROGRAM OF LEGISLATORS 183.16 RETIREMENT PLAN.] 183.17 The coordinated program of the legislators retirement plan 183.18 is created. The provisions of sections 3A.01 to 3A.13 apply to 183.19 the coordinated program. 183.20 [EFFECTIVE DATE.] This section is effective the day 183.21 following final enactment. 183.22 Sec. 2. [355.629] [SECOND SOCIAL SECURITY REFERENDUM.] 183.23 Subdivision 1. [ELECTION OF SOCIAL SECURITY COVERAGE.] Any 183.24 member of the legislators retirement plan established under 183.25 chapter 3A who did not elect coverage under an agreement under 183.26 section 218(d) of the Social Security Act as provided for in 183.27 section 355.624 is entitled to elect future social security 183.28 coverage and retroactive coverage for the period consistent with 183.29 applicable federal law, in a second social security referendum. 183.30 Any member who so elects shall become a member of the 183.31 coordinated program of the legislators retirement plan under 183.32 section 3A.15. The governor shall set a date for the referendum 183.33 and shall undertake any duties to amend the state's Social 183.34 Security Act, section 218 agreement, with the secretary of 183.35 health and human services. 183.36 Subd. 2. [PAYMENT OF RETROACTIVE SOCIAL SECURITY 184.1 TAXES.] For any service by a legislator who is in office on the 184.2 date of the agreement or modification of the agreement with the 184.3 secretary of health and human services, the executive director 184.4 of the Minnesota state retirement system shall cause to be paid 184.5 an amount for each legislator, including an amount for 184.6 retroactive coverage, equal to the taxes which would have been 184.7 imposed on the legislator and state of Minnesota by the Federal 184.8 Insurance Contributions Act had the service been covered at the 184.9 time performed. This payment shall be computed from the date of 184.10 retroactive coverage to the date that deductions are first taken 184.11 from the wages of each legislator for social security coverage. 184.12 Before making a payment on behalf of a legislator, the executive 184.13 director must receive from the legislator the funds necessary to 184.14 make the payment. Nothing in this section shall require a 184.15 legislator to elect retroactive social security coverage. 184.16 Subd. 3. [DEDUCTION FROM WAGES.] A legislator who elects 184.17 social security coverage under this section shall have a 184.18 deduction taken from wages in an amount equal to the employer 184.19 contribution required by this section. 184.20 [EFFECTIVE DATE.] This section is effective the day 184.21 following final enactment. 184.22 ARTICLE 16 184.23 MINNEAPOLIS POLICE OPTIONAL ANNUITIES 184.24 Section 1. Minnesota Statutes 2000, section 423B.09, 184.25 subdivision 6, is amended to read: 184.26 Subd. 6. [OPTIONAL ANNUITIES.] A member who is retired or 184.27 disabled on the effective date of Laws 1997, chapter 233, 184.28 article 4, section 6, may elect an optional retirement annuity 184.29 within 60 days of the effective date of Laws 1997, chapter 233, 184.30 article 4, section 6, instead of the normal retirement annuity. 184.31 A member who retires or becomes disabled after the effective 184.32 date of Laws 1997, chapter 233, article 4, section 6, may elect 184.33 an optional retirement annuity prior to the receipt of any 184.34 benefits. The optional retirement annuity may be a 50 percent, 184.35 a 75 percent, or a 100 percent joint and survivor annuity 184.36 without reinstatement in the event of the designated beneficiary 185.1 predeceasing the member or a 50 percent, a 75 percent, or a 100 185.2 percent joint and survivor annuity with reinstatement in the 185.3 event of the designated beneficiary predeceasing the member. 185.4 Optional retirement annuity forms must be actuarially equivalent 185.5 to the service pension and automatic survivor coverage otherwise 185.6 payable to the retiring member and the member's 185.7 beneficiaries. A member may only designate the member's spouse 185.8 as the recipient of a joint and survivor annuity and no benefit 185.9 or annuity may be paid to a person who does not meet the 185.10 definition of a surviving spouse member under section 423B.01, 185.11 subdivision 17. Once selected, the optional annuity is 185.12 irrevocable. 185.13 Sec. 2. [EFFECTIVE DATE.] 185.14 Section 1 is effective the day following final enactment 185.15 and applies to all joint annuity options selected by members of 185.16 the Minneapolis police relief association.