HF 1090

as introduced - 90th Legislature (2017 - 2018) Posted on 02/13/2017 12:09pm

A bill for an act
relating to retirement; Public Employees Retirement Association financial solvency
measures; increasing police and fire plan member and employer contribution rates;
eliminating certain postretirement adjustment trigger procedures; extending the
police and fire plan amortization target date; lowering the investment return
actuarial assumption; modifying the actuarial assumption requirements; modifying
interest rates charged on certain payments; amending Minnesota Statutes 2016,
sections 353.01, subdivision 16; 353.0161, subdivision 2; 353.0162; 353.27,
subdivisions 3c, 7a, 12, 12a, 12b; 353.28, subdivision 5; 353.35, subdivision 1;
353.65, subdivisions 2, 3; 356.215, subdivisions 8, 9, 11; 356.415, subdivisions
1b, 1c; proposing coding for new law in Minnesota Statutes, chapter 356; repealing
Minnesota Statutes 2016, section 356.415, subdivision 1.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2016, section 353.01, subdivision 16, is amended to read:

Subd. 16.

Allowable service; limits and computation.

(a) "Allowable service" means:

(1) service during years of actual membership in the course of which employee deductions
were withheld from salary and contributions were made at the applicable rates under section
353.27, 353.65, or 353E.03;

(2) periods of service covered by payments in lieu of salary deductions under sections
353.27, subdivisions 12 and 12a, and 353.35;

(3) service in years during which the public employee was not a member but for which
the member later elected, while a member, to obtain credit by making payments to the fund
as permitted by any law then in effect;

(4) a period of authorized leave of absence during which the employee receives pay as
specified in subdivision 10, paragraph (a), clause (4) or (5), from which deductions for
employee contributions are made, deposited, and credited to the fund;

(5) a period of authorized leave of absence without pay, or with pay that is not included
in the definition of salary under subdivision 10, paragraph (a), clause (4) or (5), for which
salary deductions are not authorized, and for which a member obtained service credit for
up to 12 months of the authorized leave period by payment under section 353.0161 or
353.0162, to the fund made in place of salary deductions;

(6) a periodic, repetitive leave that is offered to all employees of a governmental
subdivision. The leave program may not exceed 208 hours per annual normal work cycle
as certified to the association by the employer. A participating member obtains service credit
by making employee contributions in an amount or amounts based on the member's average
salary, excluding overtime pay, that would have been paid if the leave had not been taken.
The employer shall pay the employer and additional employer contributions on behalf of
the participating member. The employee and the employer are responsible to pay interest
on their respective shares at the deleted text begin rate of 8.5 percent until June 30, 2015, and eight percent
thereafter deleted text end new text begin applicable rate or rates specified in section 356.59, subdivision 3 new text end , compounded
annually, from the end of the normal cycle until full payment is made. An employer shall
also make the employer and additional employer contributions, plus deleted text begin 8.5 percent deleted text end interest
deleted text begin until June 30, 2015, and eight percent interest thereafter deleted text end new text begin at the applicable rate or rates
specified in section 356.59, subdivision 3 new text end , compounded annually, on behalf of an employee
who makes employee contributions but terminates public service. The employee contributions
must be made within one year after the end of the annual normal working cycle or within
30 days after termination of public service, whichever is sooner. The executive director
shall prescribe the manner and forms to be used by a governmental subdivision in
administering a periodic, repetitive leave. Upon payment, the member must be granted
allowable service credit for the purchased period;

(7) an authorized temporary or seasonal layoff under subdivision 12, limited to three
months allowable service per authorized temporary or seasonal layoff in one calendar year.
An employee who has received the maximum service credit allowed for an authorized
temporary or seasonal layoff must return to public service and must obtain a minimum of
three months of allowable service subsequent to the layoff in order to receive allowable
service for a subsequent authorized temporary or seasonal layoff;

(8) a period during which a member is absent from employment by a governmental
subdivision by reason of service in the uniformed services, as defined in United States Code,
title 38, section 4303(13), if the member returns to public service with the same governmental
subdivision upon discharge from service in the uniformed service within the time frames
required under United States Code, title 38, section 4312(e), provided that the member did
not separate from uniformed service with a dishonorable or bad conduct discharge or under
other than honorable conditions. The service must be credited if the member pays into the
fund equivalent employee contributions based upon the contribution rate or rates in effect
at the time that the uniformed service was performed multiplied by the full and fractional
years being purchased and applied to the annual salary rate. The annual salary rate is the
average annual salary during the purchase period that the member would have received if
the member had continued to be employed in covered employment rather than to provide
uniformed service, or, if the determination of that rate is not reasonably certain, the annual
salary rate is the member's average salary rate during the 12-month period of covered
employment rendered immediately preceding the period of the uniformed service. Payment
of the member equivalent contributions must be made during a period that begins with the
date on which the individual returns to public employment and that is three times the length
of the military leave period, or within five years of the date of discharge from the military
service, whichever is less. If the determined payment period is less than one year, the
contributions required under this clause to receive service credit may be made within one
year of the discharge date. Payment may not be accepted following 30 days after termination
of public service under subdivision 11a. If the member equivalent contributions provided
for in this clause are not paid in full, the member's allowable service credit must be prorated
by multiplying the full and fractional number of years of uniformed service eligible for
purchase by the ratio obtained by dividing the total member contributions received by the
total member contributions otherwise required under this clause. The equivalent employer
contribution, and, if applicable, the equivalent additional employer contribution must be
paid by the governmental subdivision employing the member if the member makes the
equivalent employee contributions. The employer payments must be made from funds
available to the employing unit, using the employer and additional employer contribution
rate or rates in effect at the time that the uniformed service was performed, applied to the
same annual salary rate or rates used to compute the equivalent member contribution. The
governmental subdivision involved may appropriate money for those payments. The amount
of service credit obtainable under this section may not exceed five years unless a longer
purchase period is required under United States Code, title 38, section 4312. The employing
unit shall pay interest on all equivalent member and employer contribution amounts payable
under this clause. Interest must be computed at the deleted text begin rate of 8.5 percent until June 30, 2015,
and eight percent thereafter deleted text end new text begin applicable rate or rates specified in section 356.59, subdivision
3 new text end , compounded annually, from the end of each fiscal year of the leave or the break in service
to the end of the month in which the payment is received. Upon payment, the employee
must be granted allowable service credit for the purchased period; or

(9) a period specified under section 353.0162.

(b) No member may receive more than 12 months of allowable service credit in a year
either for vesting purposes or for benefit calculation purposes.

(c) For an active member who was an active member of the former Minneapolis
Firefighters Relief Association on December 29, 2011, "allowable service" is the period of
service credited by the Minneapolis Firefighters Relief Association as reflected in the
transferred records of the association up to December 30, 2011, and the period of service
credited under paragraph (a), clause (1), after December 30, 2011. For an active member
who was an active member of the former Minneapolis Police Relief Association on December
29, 2011, "allowable service" is the period of service credited by the Minneapolis Police
Relief Association as reflected in the transferred records of the association up to December
30, 2011, and the period of service credited under paragraph (a), clause (1), after December
30, 2011.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2017.
new text end

Sec. 2.

Minnesota Statutes 2016, section 353.0161, subdivision 2, is amended to read:

Subd. 2.

Purchase procedure.

(a) An employee covered by a plan specified in
subdivision 1 may purchase credit for allowable service in that plan for a period specified
in subdivision 1 if the employee makes a payment as specified in paragraph (b) or (c),
whichever applies. The employing unit, at its option, may pay the employer portion of the
amount specified in paragraph (b) on behalf of its employees.

(b) If payment is received by the executive director within one year from the date the
member returned to work following the authorized leave, or within 30 days after the date
of termination of public service if the member did not return to work, the payment amount
is equal to the employee and employer contribution rates specified in law for the applicable
plan at the end of the leave period, or at termination of public service, whichever is earlier,
multiplied by the employee's average monthly salary, excluding overtime, upon which
deductions were paid during the six months, or portion thereof, before the commencement
of the leave of absence and by the number of months of the leave of absence for which the
employee wants allowable service credit. Payments made under this paragraph must include
deleted text begin compound deleted text end interest at the deleted text begin monthly rate of 0.71 percent until June 30, 2015, and 0.667 percent deleted text end
new text begin applicable rate or rates specified in section 356.59, subdivision 3, new text end per month deleted text begin thereafter deleted text end new text begin ,
compounded annually, new text end from the last day of the leave period until the last day of the month
in which payment is received.

(c) If payment is received by the executive director after one year, the payment amount
is the amount determined under section 356.551. Payment under this paragraph must be
made before the date the person terminates public service under section 353.01, subdivision
11a.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2017.
new text end

Sec. 3.

Minnesota Statutes 2016, section 353.0162, is amended to read:

353.0162 REDUCED SALARY PERIODS SALARY CREDIT PURCHASE.

(a) A member may purchase additional salary credit for a period specified in this section.

(b) The applicable period is a period during which the member is receiving a reduced
salary from the employer while the member is:

(1) receiving temporary workers' compensation payments related to the member's service
to the public employer;

(2) on an authorized leave of absence; or

(3) on an authorized partial paid leave of absence as a result of a budgetary or salary
savings program offered or mandated by a governmental subdivision.

(c) The differential salary amount is the difference between the average monthly salary
received by the member during the period of reduced salary under this section and the
average monthly salary of the member, excluding overtime, on which contributions to the
applicable plan were made during the period of the last six months of covered employment
occurring immediately before the period of reduced salary, applied to the member's normal
employment period, measured in hours or otherwise, as applicable.

(d) To receive eligible salary credit, the member shall pay an amount equal to:

(1) the applicable employee contribution rate under section 353.27, subdivision 2; 353.65,
subdivision 2; or 353E.03, subdivision 1, as applicable, multiplied by the differential salary
amount;

(2) plus an employer equivalent payment equal to the applicable employer contribution
rate in section 353.27, subdivision 3; 353.65, subdivision 3; or 353E.03, subdivision 2, as
applicable, multiplied by the differential salary amount;

(3) plus, if applicable, an equivalent employer additional amount equal to the additional
employer contribution rate in section 353.27, subdivision 3a, multiplied by the differential
salary amount.

(e) The employer, by appropriate action of its governing body and documented in its
official records, may pay the employer equivalent contributions and, as applicable, the
equivalent employer additional contributions on behalf of the member.

(f) Payment under this section must include interest on the contribution amount or
amounts, whichever applies, at deleted text begin an 8.5 percent annual rate until June 30, 2015, and at an
eight percent annual rate thereafter deleted text end new text begin the applicable rate or rates specified in section 356.59,
subdivision 3, compounded annually new text end , prorated for deleted text begin applicable deleted text end new text begin the number of new text end months new text begin , if less
than 12, new text end from the date on which the period of reduced salary specified under this section
terminates to the date on which the payment or payments are received by the executive
director. Payment under this section must be completed within the earlier of 30 days from
termination of public service by the employee under section 353.01, subdivision 11a, or
one year after the termination of the period specified in paragraph (b), as further restricted
under this section.

(g) The period for which additional allowable salary credit may be purchased is limited
to the period during which the person receives temporary workers' compensation payments
or for those business years in which the governmental subdivision offers or mandates a
budget or salary savings program, as certified to the executive director by a resolution of
the governing body of the governmental subdivision. For an authorized leave of absence,
the period for which allowable salary credit may be purchased may not exceed 12 months
of authorized leave.

(h) To purchase salary credit for a subsequent period of temporary workers' compensation
benefits or subsequent authorized medical leave of absence, the member must return to
public service and render a minimum of three months of allowable service.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2017.
new text end

Sec. 4.

Minnesota Statutes 2016, section 353.27, subdivision 3c, is amended to read:

Subd. 3c.

Former MERF members; member and employer contributions.

(a) For
the period July 1, 2015, through December 31, 2031, the member contributions for former
members of the Minneapolis Employees Retirement Fund and by the former Minneapolis
Employees Retirement Fund-covered employing units are governed by this subdivision.

(b) The member contribution for a public employee who was a member of the former
Minneapolis Employees Retirement Fund on June 29, 2010, is 9.75 percent of the salary of
the employee.

(c) The employer regular contribution with respect to a public employee who was a
member of the former Minneapolis Employees Retirement Fund on June 29, 2010, is 9.75
percent of the salary of the employee.

(d) For calendar years 2015 and 2016, the employer supplemental contribution is the
employing unit's share of $31,000,000. For calendar years 2017 through 2031, the employer
supplemental contribution is the employing unit's share of $21,000,000.

(e) Each employing unit's share under paragraph (d) is the amount determined from an
allocation between each employing unit in the portion equal to the unit's employer
supplemental contribution paid or payable under Minnesota Statutes 2012, section 353.50,
during calendar year 2014.

(f) The employer supplemental contribution amount under paragraph (d) for calendar
year 2015 must be invoiced by the executive director of the Public Employees Retirement
Association by July 1, 2015. The calendar year 2015 payment is payable in a single amount
on or before September 30, 2015. For subsequent calendar years, the employer supplemental
contribution under paragraph (d) must be invoiced on January 31 of each year and is payable
in two parts, with the first half payable on or before July 31 and with the second half payable
on or before December 15. Late payments are payable with deleted text begin compound deleted text end interest new text begin , compounded
annually, new text end at the deleted text begin rate of 0.71 percent deleted text end new text begin applicable rate or rates specified in section 356.59,
subdivision 3, new text end per month for each month or portion of a month that has elapsed after the
due date.

(g) The employer supplemental contribution under paragraph (d) terminates on December
31, 2031.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2017.
new text end

Sec. 5.

Minnesota Statutes 2016, section 353.27, subdivision 7a, is amended to read:

Subd. 7a.

Deductions or contributions transmitted by error.

(a) If employee deductions
and employer contributions under this section, section 353.50, 353.65, or 353E.03 were
erroneously transmitted to the association, but should have been transmitted to a plan covered
by chapter 352D, 353D, 354B, or 354D, the executive director shall transfer the erroneous
employee deductions and employer contributions to the appropriate retirement fund or
individual account, as applicable. The time limitations specified in subdivisions 7 and 12
do not apply. The transfer to the applicable defined contribution plan account must include
interest at the deleted text begin rate of 0.71 percent per month until June 30, 2015, and 0.667 percent deleted text end new text begin applicable
rate or rates specified in section 356.59, subdivision 3, new text end per month deleted text begin thereafter deleted text end , compounded
annually, from the first day of the month following the month in which coverage should
have commenced in the defined contribution plan until the end of the month in which the
transfer occurs.

(b) A potential transfer under paragraph (a) that is reasonably determined to cause the
plan to fail to be a qualified plan under section 401(a) of the federal Internal Revenue Code,
as amended, must not be made by the executive director of the association. Within 30 days
after being notified by the Public Employees Retirement Association of an unmade potential
transfer under this paragraph, the employer of the affected person must transmit an amount
representing the applicable salary deductions and employer contributions, without interest,
to the retirement fund of the appropriate Minnesota public pension plan, or to the applicable
individual account if the proper coverage is by a defined contribution plan. The association
must provide the employing unit a credit for the amount of the erroneous salary deductions
and employer contributions against future contributions from the employer. If the employing
unit receives a credit under this paragraph, the employing unit is responsible for refunding
to the applicable employee any amount that had been erroneously deducted from the person's
salary.

(c) If erroneous employee deductions and employer contributions reflect a plan coverage
error involving any Public Employees Retirement Association plan specified in section
356.99 and any other plan specified in that section, section 356.99 applies.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2017.
new text end

Sec. 6.

Minnesota Statutes 2016, section 353.27, subdivision 12, is amended to read:

Subd. 12.

Omitted salary deductions; obligations.

(a) In the case of omission of
required deductions for the general employees retirement plan, the public employees police
and fire retirement plan, or the local government correctional employees retirement plan
from the salary of an employee, the department head or designee shall immediately, upon
discovery, report the employee for membership and deduct the employee deductions under
subdivision 4 during the current pay period or during the pay period immediately following
the discovery of the omission. Payment for the omitted obligations may only be made in
accordance with reporting procedures and methods established by the executive director.

(b) When the entire omission period of an employee does not exceed 60 days, the
governmental subdivision may report and submit payment of the omitted employee
deductions and the omitted employer contributions through the reporting processes under
subdivision 4.

(c) When the omission period of an employee exceeds 60 days, the governmental
subdivision shall furnish to the association sufficient data and documentation upon which
the obligation for omitted employee and employer contributions can be calculated. The
omitted employee deductions must be deducted from the employee's subsequent salary
payment or payments and remitted to the association for deposit in the applicable retirement
fund. The employee shall pay omitted employee deductions due for the 60 days prior to the
end of the last pay period in the omission period during which salary was earned. The
employer shall pay any remaining omitted employee deductions and any omitted employer
contributions, plus cumulative interest at the annual rate of 8.5 percent until June 30, 2015,
and eight percent thereafter compounded annually, from the date or dates each omitted
employee contribution was first payable.

(d) An employer shall not hold an employee liable for omitted employee deductions
beyond the pay period dates under paragraph (c), nor attempt to recover from the employee
those employee deductions paid by the employer on behalf of the employee. Omitted
deductions due under paragraph (c) which are not paid by the employee constitute a liability
of the employer that failed to deduct the omitted deductions from the employee's salary.
The employer shall make payment with interest at the deleted text begin annual rate of 8.5 percent until June
30, 2015, and eight percent thereafter deleted text end new text begin applicable rate or rates specified in section 356.59,
subdivision 3, new text end compounded annually. Omitted employee deductions are no longer due if an
employee terminates public service before making payment of omitted employee deductions
to the association, but the employer remains liable to pay omitted employer contributions
plus interest at the deleted text begin annual rate of 8.5 percent until June 30, 2015, and eight percent thereafter deleted text end
new text begin applicable rate or rates specified in section 356.59, subdivision 3, new text end compounded annually new text begin , new text end
from the date the contributions were first payable.

(e) The association may not commence action for the recovery of omitted employee
deductions and employer contributions after the expiration of three calendar years after the
calendar year in which the contributions and deductions were omitted. Except as provided
under paragraph (b), no payment may be made or accepted unless the association has already
commenced action for recovery of omitted deductions. An action for recovery commences
on the date of the mailing of any written correspondence from the association requesting
information from the governmental subdivision upon which to determine whether or not
omitted deductions occurred.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2017.
new text end

Sec. 7.

Minnesota Statutes 2016, section 353.27, subdivision 12a, is amended to read:

Subd. 12a.

Terminated employees: omitted deductions.

A terminated employee who
was a member of the general employees retirement plan of the Public Employees Retirement
Association, the public employees police and fire retirement plan, or the local government
correctional employees retirement plan and who has a period of employment in which
previously omitted employer contributions were made under subdivision 12 but for whom
no, or only partial, omitted employee contributions have been made, or a member who had
prior coverage in the association for which previously omitted employer contributions were
made under subdivision 12 but who terminated service before required omitted employee
deductions could be withheld from salary, may pay the omitted employee deductions for
the period on which omitted employer contributions were previously paid plus interest at
the deleted text begin annual rate of 8.5 percent until June 30, 2015, and eight percent thereafter deleted text end new text begin applicable
rate or rates specified in section 356.59, subdivision 3, new text end compounded annually. A terminated
employee may pay the omitted employee deductions plus interest within six months of an
initial notification from the association of eligibility to pay those omitted deductions. If a
terminated employee is reemployed in a position covered under a public pension fund under
section 356.30, subdivision 3, and elects to pay omitted employee deductions, payment
must be made no later than six months after a subsequent termination of public service.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2017.
new text end

Sec. 8.

Minnesota Statutes 2016, section 353.27, subdivision 12b, is amended to read:

Subd. 12b.

Terminated employees: immediate eligibility.

If deductions were omitted
from salary adjustments or final salary of a terminated employee who was a member of the
general employees retirement plan, the public employees police and fire retirement plan,
or the local government correctional employees retirement plan and who is immediately
eligible to draw a monthly benefit, the employer shall pay the omitted employer and employer
additional contributions plus interest on both the employer and employee amounts due at
deleted text begin an annual rate of 8.5 percent deleted text end new text begin the applicable rate or rates specified in section 356.59,
subdivision 3, new text end compounded annually. The employee shall pay the employee deductions
within six months of an initial notification from the association of eligibility to pay omitted
deductions or the employee forfeits the right to make the payment.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2017.
new text end

Sec. 9.

Minnesota Statutes 2016, section 353.28, subdivision 5, is amended to read:

Subd. 5.

Interest chargeable on amounts due.

Any amount due under this section or
section 353.27, subdivision 4, is payable with interest at the deleted text begin annual compound rate of 8.5
percent until June 30, 2015, and eight percent thereafter deleted text end new text begin applicable rate or rates specified
in section 356.59, subdivision 3, compounded annually, new text end from the date due until the date
payment is received by the association, with a minimum interest charge of $10.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2017.
new text end

Sec. 10.

Minnesota Statutes 2016, section 353.35, subdivision 1, is amended to read:

Subdivision 1.

Refund rights.

(a) Except as provided in paragraph (b), when any former
member accepts a refund, all existing service credits and all rights and benefits to which
the person was entitled prior to the acceptance of the refund must terminate.

(b) A refund under section 353.651, subdivision 3, paragraph (c), does not result in a
forfeiture of salary credit for the allowable service credit covered by the refund.

(c) The rights and benefits of a former member must not be restored until the person
returns to active service and acquires at least six months of allowable service credit after
taking the last refund and repays the refund or refunds taken and interest received under
section 353.34, subdivisions 1 and 2, plus interest at the deleted text begin annual rate of 8.5 percent until June
30, 2015, and eight percent thereafter deleted text end new text begin applicable rate or rates specified in section 356.59,
subdivision 3, new text end compounded annually. If the person elects to restore service credit in a
particular fund from which the person has taken more than one refund, the person must
repay all refunds to that fund. All refunds must be repaid within six months of the last date
of termination of public service.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2017.
new text end

Sec. 11.

Minnesota Statutes 2016, section 353.65, subdivision 2, is amended to read:

Subd. 2.

Employee contribution.

(a) For members other than members who were active
members of the former Minneapolis Firefighters Relief Association on December 29, 2011,
or for members other than members who were active members of the former Minneapolis
Police Relief Association on December 29, 2011, the employee contribution is an amount
equal to the following percentage of the total salary of each member, as follows: deleted text begin 9.6 percent
before calendar year 2014; 10.2 percent in calendar year 2014; and 10.8 percent in calendar
year 2015 and thereafter.
deleted text end

	new text begin before January 1, 2018 new text end	new text begin 10.8 percent new text end
	new text begin from January 1, 2018, through December 31, 2018 new text end	new text begin 11.3 percent new text end
	new text begin from January 1, 2019, and thereafter new text end	new text begin 11.8 percent new text end

(b) For members who were active members of the former Minneapolis Firefighters Relief
Association on December 29, 2011, the employee contribution is an amount equal to eight
percent of the monthly unit value under section 353.01, subdivision 10a, multiplied by 80
and expressed as a biweekly amount for each member. The employee contribution made
by a member with at least 25 years of service credit as an active member of the former
Minneapolis Firefighters Relief Association must be deposited in the postretirement health
care savings account established under section 352.98.

(c) For members who were active members of the former Minneapolis Police Relief
Association on December 29, 2011, the employee contribution is an amount equal to eight
percent of the monthly unit value under section 353.01, subdivision 10b, multiplied by 80
and expressed as a biweekly amount for each member. The employee contribution made
by a member with at least 25 years of service credit as an active member of the former
Minneapolis Police Relief Association must be deposited in the postretirement health care
savings account established under section 352.98.

(d) Contributions under this section must be made by deduction from salary in the manner
provided in subdivision 4. Where any portion of a member's salary is paid from other than
public funds, the member's employee contribution is based on the total salary received from
all sources.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2017.
new text end

Sec. 12.

Minnesota Statutes 2016, section 353.65, subdivision 3, is amended to read:

Subd. 3.

Employer contribution.

(a) With respect to members other than members who
were active members of the former Minneapolis Firefighters Relief Association on December
29, 2011, or for members other than members who were active members of the former
Minneapolis Police Relief Association on December 29, 2011, the employer contribution
is an amount equal to the following percentage of the total salary of each member, as follows:
deleted text begin 14.4 percent before calendar year 2014; 15.3 percent in calendar year 2014; and 16.2 percent
in calendar year 2015 and thereafter.
deleted text end

	new text begin before January 1, 2018 new text end	new text begin 16.2 percent new text end
	new text begin from January 1, 2018, through December 31, 2018 new text end	new text begin 16.95 percent new text end
	new text begin from January 1, 2019, and thereafter new text end	new text begin 17.7 percent new text end

(b) With respect to members who were active members of the former Minneapolis
Firefighters Relief Association on December 29, 2011, the employer contribution is an
amount equal to the amount of the member contributions under subdivision 2, paragraph
(b).

(c) With respect to members who were active members of the former Minneapolis Police
Relief Association on December 29, 2011, the employer contribution is an amount equal
to the amount of the member contributions under subdivision 2, paragraph (c).

(d) Contributions under this subdivision must be made from funds available to the
employing subdivision by the means and in the manner provided in section 353.28.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2017.
new text end

Sec. 13.

Minnesota Statutes 2016, section 356.215, subdivision 8, is amended to read:

Subd. 8.

deleted text begin Interest and salary deleted text end new text begin Actuarial new text end assumptions.

(a) The actuarial valuation must
use the applicable following deleted text begin interest deleted text end new text begin investment return new text end assumption:

(1) select and ultimate interest rate assumption

plan	ultimate interest rate assumption
teachers retirement plan	8.5%

The select preretirement interest rate assumption for the period through June 30, 2017,
is eight percent.

(2) deleted text begin single rate interest rate deleted text end new text begin for all plans other than the teachers retirement plan, the
investment return new text end assumption new text begin is:
new text end

plan	deleted text begin interest rate deleted text end new text begin investment return new text end assumption
general state employees retirement plan	8%
correctional state employees retirement plan	8
State Patrol retirement plan	8
legislators retirement plan, and for the constitutional officers calculation of total plan liabilities	0
judges retirement plan	8
general public employees retirement plan	deleted text begin 8 deleted text end new text begin 7.5 new text end
public employees police and fire retirement plan	deleted text begin 8 deleted text end new text begin 7.5 new text end
local government correctional service retirement plan	deleted text begin 8 deleted text end new text begin 7.5 new text end
St. Paul teachers retirement plan	8
Bloomington Fire Department Relief Association	6
local monthly benefit volunteer firefighter relief associations	5
monthly benefit retirement plans in the statewide volunteer firefighter retirement plan	6

(b) deleted text begin (1) If funding stability has been attained, deleted text end The new text begin actuarial new text end valuation new text begin for each of the
covered plans listed in section 356.415, subdivision 2, new text end must deleted text begin use a deleted text end new text begin take into account the
new text end postretirement adjustment rate deleted text begin actuarial assumption equal to the postretirement adjustment
rate deleted text end new text begin or rates applicable to the plan as new text end specified in section deleted text begin 354A.27, subdivision 7; deleted text end 354A.29,
subdivision deleted text begin 9; deleted text end new text begin 7, new text end or 356.415 deleted text begin , subdivision 1 deleted text end , whichever applies.

deleted text begin (2) If funding stability has not been attained, the valuation must use a select postretirement
adjustment rate actuarial assumption equal to the postretirement adjustment rate specified
in section 354A.27, subdivision 6a; 354A.29, subdivision 8; or 356.415, subdivision 1a,
1b, 1c, 1d, 1e, or 1f, whichever applies, for a period ending when the approved actuary
estimates that the plan will attain the defined funding stability measure, and thereafter an
ultimate postretirement adjustment rate actuarial assumption equal to the postretirement
adjustment rate under section 354A.27, subdivision 7; 354A.29, subdivision 9; or 356.415,
subdivision 1, for the applicable period or periods beginning when funding stability is
projected to be attained.
deleted text end

(c) The actuarial valuation must use the applicable following single rate future salary
increase assumption, the applicable following modified single rate future salary increase
assumption, or the applicable following graded rate future salary increase assumption:

(1) single rate future salary increase assumption

plan	future salary increase assumption
legislators retirement plan		5%
judges retirement plan		2.75
Bloomington Fire Department Relief Association		4

(2) age-related future salary increase age-related select and ultimate future salary increase
assumption or graded rate future salary increase assumption

plan	future salary increase assumption
local government correctional service retirement plan	assumption B
St. Paul teachers retirement plan	assumption A

For plans other than the St. Paul teachers
retirement plan and the local government
correctional service retirement plan, the select
calculation is: during the designated select
period, a designated percentage rate is
multiplied by the result of the designated
integer minus T, where T is the number of
completed years of service, and is added to
the applicable future salary increase
assumption. The designated select period is
ten years and the designated integer is ten for
the local government correctional service
retirement plan and 15 for the St. Paul
Teachers Retirement Fund Association. The
designated percentage rate is 0.2 percent for
the St. Paul Teachers Retirement Fund
Association.

The ultimate future salary increase assumption is:

age	A	B
16	5.9%	8.75%
17	5.9	8.75
18	5.9	8.75
19	5.9	8.75
20	5.9	8.75
21	5.9	8.5
22	5.9	8.25
23	5.85	8
24	5.8	7.75
25	5.75	7.5
26	5.7	7.25
27	5.65	7
28	5.6	6.75
29	5.55	6.5
30	5.5	6.5
31	5.45	6.25
32	5.4	6.25
33	5.35	6.25
34	5.3	6
35	5.25	6
36	5.2	5.75
37	5.15	5.75
38	5.1	5.75
39	5.05	5.5
40	5	5.5
41	4.95	5.5
42	4.9	5.25
43	4.85	5
44	4.8	5
45	4.75	4.75
46	4.7	4.75
47	4.65	4.75
48	4.6	4.75
49	4.55	4.75
50	4.5	4.75
51	4.45	4.75
52	4.4	4.75
53	4.35	4.75
54	4.3	4.75
55	4.25	4.5
56	4.2	4.5
57	4.15	4.25
58	4.1	4
59	4.05	4
60	4	4
61	4	4
62	4	4
63	4	4
64	4	4
65	4	3.75
66	4	3.75
67	4	3.75
68	4	3.75
69	4	3.75
70	4	3.75

(3) service-related ultimate future salary increase assumption

general state employees retirement plan of the Minnesota State Retirement System	assumption A
general employees retirement plan of the Public Employees Retirement Association	assumption B
Teachers Retirement Association	assumption C
public employees police and fire retirement plan	assumption D
State Patrol retirement plan	assumption E
correctional state employees retirement plan of the Minnesota State Retirement System	assumption F

service length	A	B	C	D	E	F
1	10.25%	11.78%	12%	12.75%	7.75%	5.75%
2	7.85	8.65	9	10.75	7.25	5.6
3	6.65	7.21	8	8.75	6.75	5.45
4	5.95	6.33	7.5	7.75	6.5	5.3
5	5.45	5.72	7.25	6.25	6.25	5.15
6	5.05	5.27	7	5.85	6	5
7	4.75	4.91	6.85	5.55	5.75	4.85
8	4.45	4.62	6.7	5.35	5.6	4.7
9	4.25	4.38	6.55	5.15	5.45	4.55
10	4.15	4.17	6.4	5.05	5.3	4.4
11	3.95	3.99	6.25	4.95	5.15	4.3
12	3.85	3.83	6	4.85	5	4.2
13	3.75	3.69	5.75	4.75	4.85	4.1
14	3.55	3.57	5.5	4.65	4.7	4
15	3.45	3.45	5.25	4.55	4.55	3.9
16	3.35	3.35	5	4.55	4.4	3.8
17	3.25	3.26	4.75	4.55	4.25	3.7
18	3.25	3.25	4.5	4.55	4.1	3.6
19	3.25	3.25	4.25	4.55	3.95	3.5
20	3.25	3.25	4	4.55	3.8	3.5
21	3.25	3.25	3.9	4.45	3.75	3.5
22	3.25	3.25	3.8	4.35	3.75	3.5
23	3.25	3.25	3.7	4.25	3.75	3.5
24	3.25	3.25	3.6	4.25	3.75	3.5
25	3.25	3.25	3.5	4.25	3.75	3.5
26	3.25	3.25	3.5	4.25	3.75	3.5
27	3.25	3.25	3.5	4.25	3.75	3.5
28	3.25	3.25	3.5	4.25	3.75	3.5
29	3.25	3.25	3.5	4.25	3.75	3.5
30 or more	3.25	3.25	3.5	4.25	3.75	3.5

(d) The actuarial valuation must use the applicable following payroll growth assumption
for calculating the amortization requirement for the unfunded actuarial accrued liability
where the amortization retirement is calculated as a level percentage of an increasing payroll:

plan	payroll growth assumption
general state employees retirement plan of the Minnesota State Retirement System	3.5%
correctional state employees retirement plan	3.5
State Patrol retirement plan	3.5
judges retirement plan	2.75
general employees retirement plan of the Public Employees Retirement Association	3.5
public employees police and fire retirement plan	3.5
local government correctional service retirement plan	3.5
teachers retirement plan	3.75
St. Paul teachers retirement plan	4

(e) The assumptions set forth in paragraphs (c) and (d) continue to apply, unless a
different salary assumption or a different payroll increase assumption:

(1) has been proposed by the governing board of the applicable retirement plan;

(2) is accompanied by the concurring recommendation of the actuary retained under
section 356.214, subdivision 1, if applicable, or by the approved actuary preparing the most
recent actuarial valuation report if section 356.214 does not apply; and

(3) has been approved or deemed approved under subdivision 18.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2017.
new text end

Sec. 14.

Minnesota Statutes 2016, section 356.215, subdivision 9, is amended to read:

Subd. 9.

Other assumptions.

deleted text begin The deleted text end new text begin (a) Each plan's new text end actuarial valuation must use
assumptions concerning new text begin base new text end mortality new text begin rates new text end , disability, retirement, withdrawal, retirement
age, and any other relevant demographic or economic factor. These assumptions must be
set at levels consistent with those determined in the most recent quadrennial experience
study completed under subdivision 16, if required, or deleted text begin representative of the best estimate of
future experience deleted text end new text begin as recommended by the plan's approved actuary new text end , if a quadrennial experience
study is not required. deleted text begin The actuarial valuation must contain an exhibit indicating any actuarial
assumptions used in preparing the valuation report.
deleted text end

new text begin (b) The actuarial valuation must use an assumption concerning future mortality
improvement. This assumption must be set at levels consistent with those determined in the
most recent mortality improvement scale published by the Society of Actuaries or as
otherwise recommended by the plan's approved actuary.
new text end

new text begin (c) The actuarial valuation must contain an exhibit indicating the actuarial assumptions
used in preparing the valuation report.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2017.
new text end

Sec. 15.

Minnesota Statutes 2016, section 356.215, subdivision 11, is amended to read:

Subd. 11.

Amortization contributions.

(a) In addition to the exhibit indicating the level
normal cost, the actuarial valuation of the retirement plan must contain an exhibit for financial
reporting purposes indicating the additional annual contribution sufficient to amortize the
unfunded actuarial accrued liability and must contain an exhibit for contribution
determination purposes indicating the additional contribution sufficient to amortize the
unfunded actuarial accrued liability. For the retirement plans listed in subdivision 8, paragraph
(c), but excluding the legislators retirement plan, the additional contribution must be
calculated on a level percentage of covered payroll basis by the established date for full
funding in effect when the valuation is prepared, assuming annual payroll growth at the
applicable percentage rate set forth in subdivision 8, paragraph (d). For all other retirement
plans and for the legislators retirement plan, the additional annual contribution must be
calculated on a level annual dollar amount basis.

(b) For any retirement plan other than a retirement plan governed by paragraph (d), (e),
(f), (g), (h), (i), or (j), if there has not been a change in the actuarial assumptions used for
calculating the actuarial accrued liability of the fund, a change in the benefit plan governing
annuities and benefits payable from the fund, a change in the actuarial cost method used in
calculating the actuarial accrued liability of all or a portion of the fund, or a combination
of the three, which change or changes by itself or by themselves without inclusion of any
other items of increase or decrease produce a net increase in the unfunded actuarial accrued
liability of the fund, the established date for full funding is the first actuarial valuation date
occurring after June 1, 2020.

(c) For any retirement plan, if there has been a change in any or all of the actuarial
assumptions used for calculating the actuarial accrued liability of the fund, a change in the
benefit plan governing annuities and benefits payable from the fund, a change in the actuarial
cost method used in calculating the actuarial accrued liability of all or a portion of the fund,
or a combination of the three, and the change or changes, by itself or by themselves and
without inclusion of any other items of increase or decrease, produce a net increase in the
unfunded actuarial accrued liability in the fund, the established date for full funding must
be determined using the following procedure:

(i) the unfunded actuarial accrued liability of the fund must be determined in accordance
with the plan provisions governing annuities and retirement benefits and the actuarial
assumptions in effect before an applicable change;

(ii) the level annual dollar contribution or level percentage, whichever is applicable,
needed to amortize the unfunded actuarial accrued liability amount determined under item
(i) by the established date for full funding in effect before the change must be calculated
using the interest assumption specified in subdivision 8 in effect before the change;

(iii) the unfunded actuarial accrued liability of the fund must be determined in accordance
with any new plan provisions governing annuities and benefits payable from the fund and
any new actuarial assumptions and the remaining plan provisions governing annuities and
benefits payable from the fund and actuarial assumptions in effect before the change;

(iv) the level annual dollar contribution or level percentage, whichever is applicable,
needed to amortize the difference between the unfunded actuarial accrued liability amount
calculated under item (i) and the unfunded actuarial accrued liability amount calculated
under item (iii) over a period of 30 years from the end of the plan year in which the applicable
change is effective must be calculated using the applicable interest assumption specified in
subdivision 8 in effect after any applicable change;

(v) the level annual dollar or level percentage amortization contribution under item (iv)
must be added to the level annual dollar amortization contribution or level percentage
calculated under item (ii);

(vi) the period in which the unfunded actuarial accrued liability amount determined in
item (iii) is amortized by the total level annual dollar or level percentage amortization
contribution computed under item (v) must be calculated using the interest assumption
specified in subdivision 8 in effect after any applicable change, rounded to the nearest
integral number of years, but not to exceed 30 years from the end of the plan year in which
the determination of the established date for full funding using the procedure set forth in
this clause is made and not to be less than the period of years beginning in the plan year in
which the determination of the established date for full funding using the procedure set forth
in this clause is made and ending by the date for full funding in effect before the change;
and

(vii) the period determined under item (vi) must be added to the date as of which the
actuarial valuation was prepared and the date obtained is the new established date for full
funding.

(d) For the general employees retirement plan of the Public Employees Retirement
Association, the established date for full funding is June 30, 2031.

(e) For the Teachers Retirement Association, the established date for full funding is June
30, 2037.

(f) For the correctional state employees retirement plan of the Minnesota State Retirement
System, the established date for full funding is June 30, 2038.

(g) For the judges retirement plan, the established date for full funding is June 30, 2038.

(h) For the public employees police and fire retirement plan, the established date for full
funding is June 30, deleted text begin 2038 deleted text end new text begin 2047 new text end .

(i) For the St. Paul Teachers Retirement Fund Association, the established date for full
funding is June 30, 2042. In addition to other requirements of this chapter, the annual
actuarial valuation must contain an exhibit indicating the funded ratio and the deficiency
or sufficiency in annual contributions when comparing liabilities to the market value of the
assets of the fund as of the close of the most recent fiscal year.

(j) For the general state employees retirement plan of the Minnesota State Retirement
System, the established date for full funding is June 30, 2040.

(k) For the retirement plans for which the annual actuarial valuation indicates an excess
of valuation assets over the actuarial accrued liability, the valuation assets in excess of the
actuarial accrued liability must be recognized as a reduction in the current contribution
requirements by an amount equal to the amortization of the excess expressed as a level
percentage of pay over a 30-year period beginning anew with each annual actuarial valuation
of the plan.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2017.
new text end

Sec. 16.

Minnesota Statutes 2016, section 356.415, subdivision 1b, is amended to read:

Subd. 1b.

Annual postretirement adjustments; PERA; general employees retirement
plan and local government correctional retirement plan.

(a) Retirement annuity, disability
benefit, or survivor benefit recipients of the general employees retirement plan of the Public
Employees Retirement Association and the local government correctional service retirement
plan are entitled to a postretirement adjustment annually deleted text begin on deleted text end new text begin , effective as of each new text end January 1,
new text begin if the definition of funding stability under paragraph (b) has not been met, new text end as follows:

(1) deleted text begin for each successive January 1 until funding stability is restored for the applicable
retirement plan, deleted text end a postretirement increase of one percent must be applied each year deleted text begin , effective
on January 1, deleted text end to the monthly annuity or benefit amount of each annuitant or benefit recipient
who has been receiving an annuity or benefit for at least 12 full months as of the June 30
of the calendar year immediately before the adjustment;

(2) deleted text begin for each successive January 1 until funding stability is restored for the applicable
retirement plan, deleted text end for each annuitant or benefit recipient who has been receiving an annuity
or a benefit for at least one full month, but less than 12 full months as of the June 30 of the
calendar year immediately before the adjustment, an annual postretirement increase of 1/12
of one percent for each month the person has been receiving an annuity or benefit must be
applied deleted text begin ; deleted text end new text begin to the monthly annuity or benefit amount of the annuitant or benefit recipient.
new text end

new text begin (b) Funding stability is restored when the market value of assets of the applicable
retirement plan equals or exceeds 90 percent of the actuarial accrued liabilities of the
applicable plan in the two most recent consecutive actuarial valuations prepared under
section 356.215 and the standards for actuarial work by the approved actuary retained by
the Public Employees Retirement Association under section 356.214.
new text end

new text begin (c) Retirement annuity, disability benefit, or survivor benefit recipients of the general
employees retirement plan of the Public Employees Retirement Association and the local
government correctional service retirement plan are entitled to a postretirement adjustment
annually, effective as of each January 1, if the definition of funding stability under paragraph
(b) has been met, as follows:
new text end

deleted text begin (3) for each January 1 following the restoration of funding stability for the applicable
retirement plan, deleted text end new text begin (1) new text end a postretirement increase of 2.5 percent must be applied each year deleted text begin ,
effective January 1, deleted text end to the monthly annuity or benefit amount of each annuitant or benefit
recipient who has been receiving an annuity or benefit for at least 12 full months as of the
June 30 of the calendar year immediately before the adjustment; and

deleted text begin (4) for each January 1 following restoration of funding stability for the applicable
retirement plan, deleted text end new text begin (2) new text end for each annuity or benefit recipient who has been receiving an annuity
or a benefit for at least one full month, but less than 12 full months as of the June 30 of the
calendar year immediately before the adjustment, an annual postretirement increase of 1/12
of 2.5 percent for each month the person has been receiving an annuity or benefit must be
applied new text begin to the monthly annuity or benefit amount of the annuitant or benefit recipient new text end .

deleted text begin (b) Funding stability is restored when the market value of assets of the applicable
retirement plan equals or exceeds 90 percent of the actuarial accrued liabilities of the
applicable plan in the two most recent consecutive actuarial valuations prepared under
section 356.215 and the standards for actuarial work by the approved actuary retained by
the Public Employees Retirement Association under section 356.214.
deleted text end

deleted text begin (c) deleted text end new text begin (d) new text end After having met the definition of funding stability under paragraph (b), the
increase provided in paragraph (a), clauses (1) and (2), rather than an increase deleted text begin under
subdivision 1 deleted text end new text begin provided in paragraph (c), clauses (1) and (2) new text end , is again to be applied in a
subsequent year or years if the market value of assets of the applicable plan equals or is less
than:

(1) 85 percent of the actuarial accrued liabilities of the applicable plan for two consecutive
actuarial valuations; or

(2) 80 percent of the actuarial accrued liabilities of the applicable plan for the most recent
actuarial valuation.

deleted text begin (d) deleted text end new text begin (e) new text end An increase in annuity or benefit payments under this section must be made
automatically unless written notice is filed by the annuitant or benefit recipient with the
executive director of the Public Employees Retirement Association requesting that the
increase not be made.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2018.
new text end

Sec. 17.

Minnesota Statutes 2016, section 356.415, subdivision 1c, is amended to read:

Subd. 1c.

Annual postretirement adjustments; PERA-police and fire.

(a) Retirement
annuity, disability benefit, or survivor benefit recipients of the public employees police and
fire retirement plan are entitled to a postretirement adjustment annually on January 1, deleted text begin if the
definition of funding stability under paragraph (c) has not been met, deleted text end as follows:

(1) for each annuitant or benefit recipient whose annuity or benefit effective date is on
or before June 1, 2014, who has been receiving the annuity or benefit for at least 12 full
months as of the immediate preceding June 30, deleted text begin an amount equal to one percent in each year deleted text end new text begin
a postretirement increase of one percent must be applied each year to the monthly annuity
or benefit amount of the annuity or benefit recipient new text end ; or

(2) for each annuitant or benefit recipient whose annuity or benefit effective date is on
or before June 1, 2014, who has been receiving the annuity or benefit for at least one full
month, but less than 12 months, as of the immediate preceding June 30, deleted text begin an amount equal
to deleted text end new text begin a postretirement increase of new text end 1/12 of one percent for each month new text begin that the person has been
receiving an annuity or benefit must be applied to the monthly annuity amount or benefit
amount new text end of new text begin the new text end annuity or benefit receipt; and

(3) for each annuitant or benefit recipient whose annuity or benefit effective date is after
June 1, 2014, who will have been receiving an annuity or benefit for at least 36 full months
as of the immediate preceding June 30, deleted text begin an amount equal to one percent deleted text end new text begin a postretirement
increase of one percent must be applied each year to the monthly annuity or benefit amount
of the annuity or benefit recipient new text end ; or

(4) for each annuitant or benefit recipient whose annuity or benefit effective date is after
June 1, 2014, who has been receiving the annuity or benefit for at least 25 full months, but
less than 36 months as of the immediate preceding June 30, deleted text begin an amount equal to deleted text end new text begin a
postretirement increase of new text end 1/12 of one percent for each full month deleted text begin of deleted text end new text begin that the person has
been receiving an new text end annuity or benefit deleted text begin receipt deleted text end during the fiscal year in which the annuity or
benefit was effective new text begin must be applied to the monthly annuity or benefit amount of the annuity
or benefit recipient new text end .

deleted text begin (b) Retirement annuity, disability benefit, or survivor benefit recipients of the public
employees police and fire retirement plan are entitled to a postretirement adjustment annually
on each January 1 following the restoration of funding stability as defined under paragraph
(c) and during the continuation of funding stability as defined under paragraph (c), as follows:
deleted text end

deleted text begin (1) for each annuitant or benefit recipient who has been receiving the annuity or benefit
for at least 36 full months as of the immediate preceding June 30, an amount equal to 2.5
percent; and
deleted text end

deleted text begin (2) for each annuitant or benefit recipient who has been receiving the annuity or benefit
for at least 25 full months, but less than 36 full months, as of the immediate preceding June
30, an amount equal to 1/12 of 2.5 percent for each full month of annuity or benefit receipt
during the fiscal year in which the annuity or benefit was effective.
deleted text end

deleted text begin (c) Funding stability is restored when the market value of assets of the public employees
police and fire retirement plan equals or exceeds 90 percent of the actuarial accrued liabilities
of the applicable plan in the two most recent consecutive actuarial valuations prepared under
section 356.215 and under the standards for actuarial work of the Legislative Commission
on Pensions and Retirement by the approved actuary retained by the Public Employees
Retirement Association under section 356.214.
deleted text end

deleted text begin (d) After having met the definition of funding stability under paragraph (c), a full or
prorated increase, as provided in paragraph (a), clause (1), (2), (3), or (4), whichever applies,
rather than adjustments under paragraph (b), is again applied in a subsequent year or years
if the market value of assets of the public employees police and fire retirement plan equals
or is less than:
deleted text end

deleted text begin (1) 85 percent of the actuarial accrued liabilities of the applicable plan for two consecutive
actuarial valuations; or
deleted text end

deleted text begin (2) 80 percent of the actuarial accrued liabilities of the applicable plan for the most recent
actuarial valuation.
deleted text end

deleted text begin (e) deleted text end new text begin (b) new text end An increase in annuity or benefit payments under this section must be made
automatically unless written notice is filed by the annuitant or benefit recipient with the
executive director of the Public Employees Retirement Association requesting that the
increase not be made.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2018.
new text end

Sec. 18.

new text begin [356.59] INTEREST RATES.
new text end

new text begin Subdivision 1. new text end

new text begin Applicable interest rates. new text end

new text begin Whenever the payment of interest is required
with respect to any payment, including refunds, remittances, shortages, contributions, or
repayments, the rate of interest is the rate or rates specified in subdivisions 2 to 4 for each
public retirement plan.
new text end

new text begin Subd. 2. new text end

new text begin Minnesota State Retirement System. new text end

new text begin The interest rates for all retirement plans
administered by the Minnesota State Retirement System are as follows:
new text end

			new text begin Annual new text end		new text begin Monthly new text end
	new text begin before July 1, 2015 new text end	new text begin 8.5 percent new text end		new text begin 0.71 percent new text end
	new text begin from July 1, 2015, to June 30, 2017 new text end	new text begin 8.0 percent new text end		new text begin 0.667 percent new text end
	new text begin after June 30, 2017 new text end	new text begin 7.5 percent new text end		new text begin 0.625 percent new text end

new text begin Subd. 3. new text end

new text begin Public Employees Retirement Association. new text end

new text begin The interest rates for all retirement
plans administered by the Public Employees Retirement Association are as follows:
new text end

	new text begin before July 1, 2015 new text end	new text begin 8.5 percent new text end
	new text begin from July 1, 2015, to June 30, 2017 new text end	new text begin 8.0 percent new text end
	new text begin after June 30, 2017 new text end	new text begin 7.5 percent new text end

new text begin Subd. 4. new text end

new text begin St. Paul Teachers Retirement Fund Association. new text end

new text begin The interest rates for the
retirement plan administered by the St. Paul Teachers Retirement Fund Association are as
follows:
new text end

			new text begin Annual new text end		new text begin Monthly new text end
	new text begin before July 1, 2015 new text end	new text begin 8.5 percent new text end		new text begin 0.71 percent new text end
	new text begin from July 1, 2015, to June 30, 2017 new text end	new text begin 8.0 percent new text end		new text begin 0.667 percent new text end
	new text begin after June 30, 2017 new text end	new text begin 7.5 percent new text end		new text begin 0.625 percent new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2017.
new text end

Sec. 19. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2016, section 356.415, subdivision 1, new text end new text begin is repealed.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2017.
new text end

APPENDIX

Repealed Minnesota Statutes: 17-2857

356.415 POSTRETIREMENT ADJUSTMENTS; STATEWIDE RETIREMENT PLANS.

Subdivision 1.

Annual postretirement adjustments; generally.

(a) Except as otherwise provided in subdivision 1a, 1b, 1c, 1d, 1e, or 1f, retirement annuity, disability benefit, or survivor benefit recipients of a covered retirement plan are entitled to a postretirement adjustment annually on January 1, as follows:

(1) a postretirement increase of 2.5 percent must be applied each year, effective January 1, to the monthly annuity or benefit of each annuitant or benefit recipient who has been receiving an annuity or a benefit for at least 12 full months as of the June 30 of the calendar year immediately before the adjustment; and

(2) for each annuitant or benefit recipient who has been receiving an annuity or a benefit amount for at least one full month, but less than 12 full months as of the June 30 of the calendar year immediately before the adjustment, an annual postretirement increase of 1/12 of 2.5 percent for each month that the person has been receiving an annuity or benefit must be applied.

(b) An increase in annuity or benefit payments under this section must be made automatically unless written notice is filed by the annuitant or benefit recipient with the executive director of the covered retirement plan requesting that the increase not be made.