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            modifying voluntary unpaid leave of absence provision 
  1.37            for state employees; providing for an extension of the 
  1.38            rule of 90 benefit tier for the teachers retirement 
  1.39            association and the Duluth teachers retirement fund 
  1.40            association; changing the effective date for certain 
  1.41            modifications to the judges retirement plan; amending 
  1.42            Minnesota Statutes 2000, sections 69.77; 69.80; 
  1.43            353.01, by adding a subdivision; 353.64, subdivision 
  1.44            7a; 353A.08, subdivision 6a; 353E.02, subdivision 1, 
  1.45            by adding a subdivision; 353E.03; 353F.02, subdivision 
  1.46            4; 354.05, subdivision 38; 354.44, subdivision 6; 
  2.1             354A.011, subdivisions 15A, 27; 354A.31, subdivisions 
  2.2             4a, 5, 6, 7; 355.01, subdivisions 1, 3, 6, 8, by 
  2.3             adding subdivisions; 355.02; 355.03; 355.05; 355.07; 
  2.4             355.08; 356.001; 356.20, subdivisions 1, 2, 3, 4, 4a; 
  2.5             356.215, as amended; 356.216; 356.217; 356.219; 
  2.6             356.22; 356.23; 356.24, subdivisions 1b, 1c, 2; 
  2.7             356.245; 356.25; 356.30; 356.302; 356.303; 356.32; 
  2.8             356.40; 356.41; 356.50; 356.55, as amended; 356.551; 
  2.9             356.611; 356.65, subdivision 2; 356.87; 356.89, 
  2.10            subdivision 3; 423A.17; 423A.171; 423B.09, subdivision 
  2.11            6; 424A.02, subdivision 1; 424A.09; Minnesota Statutes 
  2.12            2001 Supplement, sections 352.01, subdivision 11; 
  2.13            353.01, subdivisions 2a, 2b, 11b, 16; 353.27, 
  2.14            subdivisions 4, 11; 354.05, subdivisions 2, 13; 
  2.15            356.24, subdivision 1; 356.555; 356.62; 356.65, 
  2.16            subdivision 1; Laws 1997, chapter 202, article 2, 
  2.17            section 61, as amended; Laws 1999, chapter 222, 
  2.18            article 16, section 16; Laws 2000, chapter 461, 
  2.19            article 10, section 3, as amended; Laws 2000, chapter 
  2.20            461, article 12, section 20; Laws 2000, chapter 461, 
  2.21            article 18, section 10; Laws 2001, First Special 
  2.22            Session chapter 10, article 6, section 21; proposing 
  2.23            coding for new law in Minnesota Statutes, chapters 3A; 
  2.24            355; 356; proposing coding for new law as Minnesota 
  2.25            Statutes, chapter 356B; repealing Minnesota Statutes 
  2.26            2000, sections 69.25; 69.26; 69.27; 69.28; 69.29; 
  2.27            69.30; 69.32; 69.361; 69.37; 69.38; 69.39; 69.40; 
  2.28            69.41; 69.42; 69.43; 69.44; 69.45; 69.46; 69.47; 
  2.29            69.48; 69.49; 69.50; 69.51; 69.52; 69.53; 69.62; 
  2.30            69.78; 297I.10, subdivision 2; 355.01, subdivisions 2, 
  2.31            4, 5, 9, 10; 355.11; 355.12; 355.13; 355.14; 355.15; 
  2.32            355.16; 355.17; 355.201; 355.202; 355.203; 355.204; 
  2.33            355.205; 355.206; 355.207; 355.208; 355.209; 355.21; 
  2.34            355.22; 355.23; 355.24; 355.25; 355.26; 355.27; 
  2.35            355.28; 355.281; 355.282; 355.283; 355.284; 355.285; 
  2.36            355.286; 355.287; 355.288; 355.29; 355.291; 355.292; 
  2.37            355.293; 355.294; 355.295; 355.296; 355.297; 355.298; 
  2.38            355.299; 355.30; 355.311; 355.391; 355.392; 355.393; 
  2.39            355.41; 355.42; 355.43; 355.44; 355.45; 355.46; 
  2.40            355.48; 355.49; 355.50; 355.51; 355.52; 355.54; 
  2.41            355.55; 355.56; 355.57; 355.58; 355.59; 355.60; 
  2.42            355.61; 355.621; 355.622; 355.623; 355.624; 355.625; 
  2.43            355.626; 355.627; 355.628; 355.71; 355.72; 355.73; 
  2.44            355.74; 355.75; 355.76; 355.77; 355.78; 355.79; 
  2.45            355.80; 355.81; 355.90; 356.19; 356.305; 356.306; 
  2.46            356.31; 356.325; 356.35; 356.36; 356.37; 356.371, 
  2.47            subdivisions 2, 3; 356.372; 356.38; 356.39; 356.45; 
  2.48            356.451; 356.452; 356.453; 356.454; 356.455; 356.615; 
  2.49            356.71; 356.80; 356.81; 356.86; 356.865; 356.88; 
  2.50            356.89; 423.37; 423.371; 423.372; 423.373; 423.374; 
  2.51            423.375; 423.377; 423.378; 423.379; 423.38; 423.381; 
  2.52            423.382; 423.383; 423.384; 423.385; 423.386; 423.387; 
  2.53            423.388; 423.389; 423.39; 423.391; 423.392; 423.801; 
  2.54            423.802; 423.803; 423.804; 423.805; 423.806; 423.808; 
  2.55            423.809; 423.810; 423.812; 423.813; 423.814; 423.90; 
  2.56            423A.03; 424.01; 424.02; 424.03; 424.04; 424.05; 
  2.57            424.06; 424.08; 424.14; 424.15; 424.16; 424.165; 
  2.58            424.17; 424.18; 424.19; 424.20; 424.21; 424.22; 
  2.59            424.23; 424.24; 424.25; 424.27; 424.28; 424.29; 
  2.60            Minnesota Statutes 2001 Supplement, sections 353.01, 
  2.61            subdivision 39; 356.371, subdivision 1; 356.866; 
  2.62            Special Session Laws 1889, chapter 425; Special 
  2.63            Session Laws 1891, chapter 11; Laws 1897, chapters 
  2.64            389; 390; Laws 1915, chapter 68; Laws 1917, chapter 
  2.65            196; Laws 1919, chapters 68, 515; Laws 1921, chapter 
  2.66            118; Laws 1923, chapter 54; Laws 1925, chapter 197; 
  2.67            Laws 1931, chapter 48; Laws 1933, chapter 122; Laws 
  2.68            1935, chapters 92; 192; 208; 259; Laws 1937, chapters 
  2.69            132; 197; 253; Laws 1939, chapters 124; 304; Laws 
  2.70            1941, chapters 74; 182; 196; Laws 1943, chapters 170; 
  2.71            267; 397; 413; 432; Laws 1945, chapters 74; 182; 277; 
  3.1             300; Laws 1947, chapters 40; 43; 101; 274; 329; Laws 
  3.2             1949, chapters 87; 144; 153; 154; 164; 191; 235; 281; 
  3.3             378; Laws 1951, chapters 43; 45; 48; 144; 233; 243; 
  3.4             420; 435; 499; Laws 1953, chapters 37; 44; 91; 235; 
  3.5             253; 348; 391; 401; 406; Laws 1955, chapters 42; 49; 
  3.6             75; 151; 187; 188; 293; 294; 348; 375; 827; Laws 1957, 
  3.7             chapters 10; 16; 36; 127; 144; 164; 256; 257; 455; 
  3.8             630; 793; Laws 1959, chapters 108; 131; 191; 207; 208; 
  3.9             211; 437; Laws 1961, chapters 186; 290; 295; 300; 343; 
  3.10            376; 399; 434; 435, section 2; 443; 620; 631; 747; 
  3.11            Extra Session Laws 1961, chapters 28; 80; Laws 1963, 
  3.12            chapters 36; 208; 221; 271; 443; 453; 454; 464; 619; 
  3.13            636; 643; 670; 715; Laws 1965, chapters 174; 179; 190; 
  3.14            418; 457; 458; 465; 498; 536; 540; 594; 604; 605; 636; 
  3.15            790; Laws 1967, chapters 644; 678; 702; 708; 730; 732; 
  3.16            736; 751; 775; 783; 798; 807; 816; 848; Laws 1969, 
  3.17            chapters 138; 442; 443; 552; 576; 594; 614; 641; 668; 
  3.18            669; 670; 671; 672; 686; 694; 716; 849; 1087; Laws 
  3.19            1971, chapters 51; 178; 407; 549; 614; 807; 809; 810; 
  3.20            Extra Session Laws 1971, chapter 41; Laws 1973, 
  3.21            chapters 286; 287; 346; 359; 432; 433; 587; Laws 1974, 
  3.22            chapters 251; 382; Laws 1975, chapters 120; 121; 127; 
  3.23            254, sections 1, 2, 3, 4, 5, 6; 368, section 54; 389; 
  3.24            408; 423; 424; 425; Laws 1976, chapters 36; 78; 85; 
  3.25            99; 247; Laws 1977, chapters 83; 164, sections 1, 3; 
  3.26            169; 270; 275; 374, sections 1, 2, 3, 4, 5, 6, 7, 8, 
  3.27            9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 
  3.28            23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 
  3.29            36, 37, 38, 39, 40, 41, 42, 43, 44, 45, 46, 47, 48, 
  3.30            49, 50, 51, 52, 53, 54, 55, 56, 57, 58, 59, 60; 429, 
  3.31            section 62; Laws 1978, chapters 563, sections 12, 13, 
  3.32            14, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 
  3.33            28, 29, 30; 579; 648; 690, sections 9, 10; 793, 
  3.34            section 96; Laws 1979, chapters 131, section 3; 216, 
  3.35            sections 27, 28, 29, 30, 31, 34, 35, 36, 37, 38, 39, 
  3.36            40, 41, 42, 43, 44; Laws 1980, chapters 341, sections 
  3.37            2, 3, 4, 5, 6, 9, 10; 600, sections 11, 12, 13, 14, 
  3.38            15, 16, 17, 18, 22; 607, article XV, section 23; Laws 
  3.39            1981, chapter 68, sections 31, 32, 33, 34, 35, 36, 37, 
  3.40            41, 42, 43; Laws 1981, chapter 224, sections 236, 237, 
  3.41            239, 240, 243, 244, 247, 248, 252, 253, 258, 259, 260, 
  3.42            261, 263, 264, 265, 266, 267, 268, 270, 272, 273; Laws 
  3.43            1981, chapter 297, sections 1, 2; Laws 1982, chapters 
  3.44            402; 443; 574, sections 3, 4, 5, 6, 8; 578, article 
  3.45            II, section 1, subdivision 8, article III, section 18; 
  3.46            610, sections 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 
  3.47            18, 19, 20; Laws 1983, chapters 47; 74; 84, section 1; 
  3.48            291, sections 8, 9, 10, 11, 12, 13, 14, 15, 16, 17; 
  3.49            Laws 1984, chapter 574, sections 18, 19, 20, 22, 23, 
  3.50            24, 25, 26, 33; Laws 1985, chapters 259, sections 5, 
  3.51            6; 261, sections 14, 15, 16, 18, 20, 32, 33, 34, 35, 
  3.52            36; Laws 1985, First Special Session chapter 16, 
  3.53            article 2, section 6; Laws 1986, chapters 359, 
  3.54            sections 22, 23, 24, 25; 458, sections 23, 34; Laws 
  3.55            1987, chapter 372, article 2, sections 7, 8, 9, 10, 
  3.56            12; Laws 1988, chapter 709, articles 8, section 5; 9, 
  3.57            section 5; Laws 1989, chapter 319, article 11, 
  3.58            sections 2, 3, 4, 12; Laws 1990, chapter 589, article 
  3.59            1, section 7; Laws 1991, chapters 96; 269, article 2, 
  3.60            sections 12, 13; Laws 1992, chapters 392, section 1; 
  3.61            393, section 1; 422; 431, section 1; 448; 455; 563, 
  3.62            sections 3, 4, 5; 586, section 1; Laws 1993, chapters 
  3.63            72; 110; 112, section 2; 126; 202, article 1; Laws 
  3.64            1994, chapters 409; 410; 474; 490; 541, section 3; 
  3.65            Laws 1995, chapter 262, article 10, section 4; Laws 
  3.66            1996, chapter 448, article 2, section 1; Laws 1997, 
  3.67            chapter 233, article 1, section 58; Laws 1997, chapter 
  3.68            241, article 2, sections 2, 3, 4, 5, 6, 9, 10, 11, 13, 
  3.69            14, 15, 20; Laws 1999, chapter 222, article 3, section 
  3.70            6; Laws 2000, chapter 461, article 10, section 2. 
  4.1   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  4.2                              ARTICLE 1 
  4.3                        LOCAL POLICE AND PAID 
  4.4                       FIRE RELIEF ASSOCIATION 
  4.5                     GOVERNING LAW CLARIFICATION 
  4.6      Section 1.  Minnesota Statutes 2000, section 69.77, is 
  4.7   amended to read: 
  4.8      69.77 [POLICE AND FIREFIGHTERS' RELIEF ASSOCIATION 
  4.9   GUIDELINES ACT.] 
  4.10     Subdivision 1.  [AUTHORIZED CONDITIONED EMPLOYER SUPPORT 
  4.11  FOR A RELIEF ASSOCIATION.] (a) Notwithstanding any law to the 
  4.12  contrary, only if the municipality and the relief association 
  4.13  comply with the provisions of this section, a municipality may 
  4.14  contribute public funds, including any applicable police or fire 
  4.15  state aid, or levy property taxes for the support of a police or 
  4.16  firefighters' relief association, enumerated in subdivision 1a, 
  4.17  however organized, which provides retirement coverage or pays a 
  4.18  service pension to a retired police officer or firefighter or a 
  4.19  retirement benefit to a surviving dependent of either an active 
  4.20  or retired police officer or firefighter, for the operation and 
  4.21  maintenance of the relief association only if the municipality 
  4.22  and the relief association comply with the provisions of this 
  4.23  section.  
  4.24     (b) The commissioner shall not include in the apportionment 
  4.25  of police or fire state aid to the county auditor pursuant to 
  4.26  under section 69.021, subdivision 6, any municipality in which 
  4.27  there exists a local police or salaried firefighters' relief 
  4.28  association as enumerated in subdivision 1a which does not 
  4.29  comply with the provisions of this section or the provisions of 
  4.30  any applicable special law relating to the funding or financing 
  4.31  of the association and that municipality shall may not qualify 
  4.32  initially to receive, or be entitled subsequently to retain, 
  4.33  state aid pursuant to under sections 69.011 to 69.051 until the 
  4.34  reason for the disqualification is remedied, whereupon the 
  4.35  municipality, if otherwise qualified, shall be is entitled to 
  4.36  again receive state aid for the year occurring immediately 
  5.1   subsequent to the year in which the disqualification is remedied.
  5.2      (c) The state auditor and the commissioner shall determine 
  5.3   if a municipality with a local police or salaried firefighters' 
  5.4   relief association fails to comply with the provisions of this 
  5.5   section or the funding or financing provisions of any applicable 
  5.6   special law. 
  5.7      Subd. 1a.  [COVERED RETIREMENT PLANS.] The provisions of 
  5.8   this section shall apply to the following local retirement funds 
  5.9   plans: 
  5.10     (1) any police pension fund or relief association which is 
  5.11  established pursuant to chapter 423 the Bloomington firefighters 
  5.12  relief association; 
  5.13     (2) any salaried firefighters' pension fund or relief 
  5.14  association which is established pursuant to chapter 424 the 
  5.15  Fairmont police relief association; 
  5.16     (3) any pension fund or relief association which is 
  5.17  established pursuant to this chapter which has five or more 
  5.18  members who receive compensation for services rendered in the 
  5.19  employment covered by the pension fund or relief association and 
  5.20  which provides for retirement coverage or a service pension 
  5.21  based on the compensation paid to members for that service the 
  5.22  Minneapolis firefighters relief association; 
  5.23     (4) any pension fund or relief association which is 
  5.24  established and operates in whole or in part pursuant to special 
  5.25  legislation and which provides for retirement coverage or a 
  5.26  service pension based on the compensation paid to members for 
  5.27  service as police officers or firefighters or which provides for 
  5.28  retirement coverage or a service pension to volunteer 
  5.29  firefighters based on the compensation paid to or the service 
  5.30  pension provided by a pension fund or relief association located 
  5.31  in the same municipality for police officers employed by the 
  5.32  municipality but not covered by clause (1), (2) or (3) the 
  5.33  Minneapolis police relief association; and 
  5.34     (5) any governmental subdivision retirement fund 
  5.35  established pursuant to any law providing for retirement 
  5.36  coverage to police officers or salaried firefighters or a 
  6.1   retirement benefit to their dependents and not otherwise 
  6.2   described in this subdivision the Virginia fire department 
  6.3   relief association. 
  6.4      Subd. 2.  [INAPPLICABLE PENALTY.] The penalty provided for 
  6.5   in subdivision 1 shall does not apply to a relief association 
  6.6   enumerated in subdivision 1a if the requirements of subdivisions 
  6.7   2a 3 to 2h 10 are met. 
  6.8      Subd. 2a 3.  [MINIMUM MEMBER CONTRIBUTION.] Each active 
  6.9   member of the relief association shall must pay into the special 
  6.10  fund of the association during a year of covered service, a 
  6.11  contribution for retirement coverage, including survivorship 
  6.12  benefits, of not less than eight percent of the maximum rate of 
  6.13  salary upon which retirement coverage is credited and service 
  6.14  pension and retirement benefit amounts are determined.  The 
  6.15  member contributions shall must be made by payroll deduction 
  6.16  from the salary of the member by the municipality, and 
  6.17  shall must be transmitted by the municipality to the relief 
  6.18  association as soon as practical.  The relief association shall 
  6.19  deposit the member contribution to the credit of the special 
  6.20  fund of the relief association.  The member contribution 
  6.21  requirement specified in this subdivision shall does not apply 
  6.22  to any members who are volunteer firefighters. 
  6.23     Subd. 2b 4.  [RELIEF ASSOCIATION FINANCIAL REQUIREMENTS; 
  6.24  MINIMUM MUNICIPAL OBLIGATION.] (a) The officers of the relief 
  6.25  association shall determine the financial requirements of the 
  6.26  relief association and minimum obligation of the municipality 
  6.27  for the following calendar year in accordance with the 
  6.28  requirements of this subdivision.  The financial requirements of 
  6.29  the relief association and the minimum obligation of the 
  6.30  municipality shall must be determined on or before the 
  6.31  submission date established by the municipality pursuant to 
  6.32  under subdivision 2c 5. 
  6.33     (b) The financial requirements of the relief association 
  6.34  for the following calendar year shall must be based on the most 
  6.35  recent actuarial valuation or survey of the special fund of the 
  6.36  association if more than one fund is maintained by the 
  7.1   association, or of the association, if only one fund is 
  7.2   maintained, prepared in accordance with sections 356.215, 
  7.3   subdivisions 4 to 4k and 356.216, as required pursuant to under 
  7.4   subdivision 2h 10.  If an actuarial estimate is prepared by the 
  7.5   actuary of the relief association as part of obtaining a 
  7.6   modification of the benefit plan of the relief association and 
  7.7   the modification is implemented, the actuarial estimate shall 
  7.8   must be used in calculating the subsequent financial 
  7.9   requirements of the relief association. 
  7.10     (c) If the relief association has an unfunded actuarial 
  7.11  accrued liability as reported in the most recent actuarial 
  7.12  valuation or survey, the total of the amounts 
  7.13  calculated pursuant to under clauses (a), (b), and (c) 
  7.14  shall (1), (2), and (3) constitute the financial requirements of 
  7.15  the relief association for the following year.  If the relief 
  7.16  association does not have an unfunded actuarial accrued 
  7.17  liability as reported in the most recent actuarial valuation or 
  7.18  survey, the amount calculated pursuant to under clauses (a) and 
  7.19  (b) shall (1) and (2) constitute the financial requirements of 
  7.20  the relief association for the following year.  The financial 
  7.21  requirement elements are: 
  7.22     (a) (1) the normal level cost requirement for the following 
  7.23  year, expressed as a dollar amount, which shall must be 
  7.24  determined by applying the normal level cost of the relief 
  7.25  association as reported in the actuarial valuation or survey and 
  7.26  expressed as a percentage of covered payroll to the estimated 
  7.27  covered payroll of the active membership of the relief 
  7.28  association, including any projected increase change in the 
  7.29  active membership, for the following year.; 
  7.30     (b) (2) for the Bloomington fire department relief 
  7.31  association, the Fairmont police relief association, and the 
  7.32  Virginia fire department relief association, to the dollar 
  7.33  amount of normal cost thus determined shall under clause (1) 
  7.34  must be added an amount equal to the dollar amount of the 
  7.35  administrative expenses of the special fund of the association 
  7.36  if more than one fund is maintained by the association, or of 
  8.1   the association if only one fund is maintained, for the most 
  8.2   recent year, multiplied by the factor of 1.035.  For a relief 
  8.3   association in a municipality, The administrative expenses are 
  8.4   those authorized under section 69.80.  No amount of 
  8.5   administrative expenses under this clause shall are to be 
  8.6   included in the financial requirements of a the Minneapolis 
  8.7   firefighters relief association in a city of the first class 
  8.8   with a population of more than 300,000. or the Minneapolis 
  8.9   police relief association; and 
  8.10     (c) (3) to the dollar amount of normal cost and expenses 
  8.11  determined under clauses (a) and (b) shall (1) and (2) must be 
  8.12  added an amount equal to the level annual dollar amount which is 
  8.13  sufficient to amortize the unfunded actuarial accrued liability 
  8.14  by December 31, 2010, as determined from the actuarial valuation 
  8.15  or survey of the fund, using an interest assumption set at the 
  8.16  applicable rate specified in section 356.215, subdivision 4d.  
  8.17  The amortization date specified in this clause shall apply 
  8.18  applies to all local police or salaried firefighters' relief 
  8.19  associations and shall supersede that date supersedes any 
  8.20  amortization date specified in any applicable special law. 
  8.21     (d) The minimum obligation of the municipality shall be is 
  8.22  an amount equal to the financial requirements of the relief 
  8.23  association reduced by the estimated amount of member 
  8.24  contributions from covered salary anticipated for the following 
  8.25  calendar year and the estimated amounts anticipated for the 
  8.26  following calendar year from the applicable state aid program 
  8.27  established pursuant to under sections 69.011 to 69.051 
  8.28  receivable by the relief association after any allocation 
  8.29  made pursuant to under section 69.031, subdivision 5, clause 
  8.30  (2), subclause (c) paragraph (b), clause (2), or 423A.01, 
  8.31  subdivision 2, clause (6), from the local police and salaried 
  8.32  firefighters' relief association amortization aid program 
  8.33  established pursuant to under section 423A.02 and, subdivision 
  8.34  1, from the supplementary amortization state-aid program 
  8.35  established under Laws 1984, chapter 564, section 48, and Laws 
  8.36  1985, chapter 261, section 17 section 423A.02, subdivision 1a, 
  9.1   and from the additional amortization state aid under section 
  9.2   423A.02, subdivision 1b. 
  9.3      Subd. 2c 5.  [DETERMINATION SUBMISSION.] The officers of 
  9.4   the relief association shall submit the determination of the 
  9.5   financial requirements of the relief association and of the 
  9.6   minimum obligation of the municipality to the governing body on 
  9.7   or before the date established by the municipality, which shall 
  9.8   may not be earlier than August 1 and shall may not be later than 
  9.9   September 1 of each year.  The governing body of the 
  9.10  municipality shall must ascertain whether or not the 
  9.11  determinations were prepared in accordance with law. 
  9.12     Subd. 2d 6.  [MUNICIPAL PAYMENT.] (a) The municipality 
  9.13  shall provide for and shall pay, each year, at least the amount 
  9.14  of the minimum obligation of the municipality to the relief 
  9.15  association.  
  9.16     (b) If there is any deficiency in the municipal payment to 
  9.17  meet the minimum obligation of the municipality as of the end of 
  9.18  any calendar year, the amount of the deficiency shall must be 
  9.19  added to the minimum obligation of the municipality for the 
  9.20  following year calculated pursuant to under subdivision 2b 4 and 
  9.21  shall must include interest at the compound rate of six percent 
  9.22  per annum compounded from the date that the municipality was 
  9.23  required to make payment pursuant to under this subdivision 
  9.24  until the date that the municipality actually makes the required 
  9.25  payment. 
  9.26     Subd. 2e 7.  [BUDGET INCLUSION.] (a) The municipality shall 
  9.27  provide in the annual municipal budget for at least the minimum 
  9.28  obligation of the municipality calculated pursuant to under 
  9.29  subdivision 2b 4.  
  9.30     (b) The municipality may levy taxes for the payment of the 
  9.31  minimum obligation of the municipality without any limitation as 
  9.32  to rate or amount and irrespective of limitations imposed by 
  9.33  other provisions of law upon the rate or amount of taxation when 
  9.34  the balance of the special fund or any fund of the relief 
  9.35  association has attained a specified minimum asset level.  In 
  9.36  addition, any taxes levied pursuant to under this section shall 
 10.1   may not cause the amount or rate of other taxes levied in that 
 10.2   year or to be levied in a subsequent year by the municipality 
 10.3   which are subject to a limitation as to rate or amount to be 
 10.4   reduced.  
 10.5      (c) If the municipality does not include the full amount of 
 10.6   the minimum obligation of the municipality in the levy that the 
 10.7   municipality certified to the county auditor in any year, the 
 10.8   officers of the relief association shall certify the amount of 
 10.9   any deficiency to the county auditor.  Upon verifying the 
 10.10  existence of any deficiency in the levy certified by the 
 10.11  municipality, the county auditor shall spread a levy over the 
 10.12  taxable property of the municipality in the amount of the 
 10.13  deficiency certified to by the officers of the relief 
 10.14  association. 
 10.15     Subd. 2f 8.  [ACCELERATED AMORTIZATION.] Any sums of money 
 10.16  paid by the municipality to the relief association in excess of 
 10.17  the minimum obligation of the municipality in any year shall 
 10.18  must be used to amortize any unfunded actuarial accrued 
 10.19  liabilities of the relief association. 
 10.20     Subd. 2g 9.  [LOCAL POLICE AND PAID FIRE RELIEF ASSOCIATION 
 10.21  INVESTMENT AUTHORITY.] (a) The funds of the association must be 
 10.22  invested in securities that are authorized investments under 
 10.23  section 356A.06, subdivision 6 or 7, whichever 
 10.24  applies.  Notwithstanding the foregoing, Up to 75 percent of the 
 10.25  market value of the assets of the fund may be invested in 
 10.26  open-end investment companies registered under the federal 
 10.27  Investment Company Act of 1940, if the portfolio investments of 
 10.28  the investment companies comply with the type of securities 
 10.29  authorized for investment under section 356A.06, subdivision 7.  
 10.30  Securities held by the association before June 2, 1989, that do 
 10.31  not meet the requirements of this subdivision may be retained 
 10.32  after that date if they were proper investments for the 
 10.33  association on that date. 
 10.34     (b) The governing board of the association may select and 
 10.35  appoint investment agencies to act for and in its behalf or may 
 10.36  certify special fund assets for investment by the state board of 
 11.1   investment under section 11A.17.  The governing board of the 
 11.2   association may certify general fund assets of the relief 
 11.3   association for investment by the state board of investment in 
 11.4   fixed income pools or in a separately managed account at the 
 11.5   discretion of the state board of investment as provided in 
 11.6   section 11A.14.  The governing board of the association may 
 11.7   select and appoint a qualified private firm to measure 
 11.8   management performance and return on investment, and the firm 
 11.9   shall use the formula or formulas developed by the state board 
 11.10  under section 11A.04, clause (11). 
 11.11     Subd. 2h 10.  [ACTUARIAL VALUATION REQUIRED.] The 
 11.12  association shall obtain an actuarial valuation showing the 
 11.13  condition of the special fund of the relief association pursuant 
 11.14  to under sections 356.215 and 356.216 and any applicable 
 11.15  standards for actuarial work established by the legislative 
 11.16  commission on pensions and retirement.  The actuarial valuation 
 11.17  must be made as of December 31 of every year.  A copy of the 
 11.18  actuarial valuation shall must be filed with the director of the 
 11.19  legislative reference library, the governing body of the 
 11.20  municipality in which the association is organized, the 
 11.21  executive director of the legislative commission on pensions and 
 11.22  retirement, and the state auditor, not later than July 1 of the 
 11.23  following year. 
 11.24     Subd. 2i 11.  [MUNICIPAL APPROVAL OF BENEFIT CHANGES 
 11.25  REQUIRED.] Any amendment to the bylaws or articles of 
 11.26  incorporation of a relief association which increases or 
 11.27  otherwise affects the retirement coverage provided by or the 
 11.28  service pensions or retirement benefits payable from any police 
 11.29  or firefighters' relief association enumerated in subdivision 1a 
 11.30  shall is not be effective until it is ratified by the 
 11.31  municipality in which the relief association is located.  The 
 11.32  officers of the relief association shall not seek municipal 
 11.33  ratification prior to before obtaining either an updated 
 11.34  actuarial valuation including the proposed amendment or an 
 11.35  estimate of the expected actuarial impact of the proposed 
 11.36  amendment prepared by the actuary of the relief association and 
 12.1   submitting that actuarial valuation or estimate to the clerk of 
 12.2   the municipality. 
 12.3      Subd. 12.  [APPLICATION OF OTHER LAWS TO CONTRIBUTION 
 12.4   RATE.] In the absence of any specific provision to the contrary, 
 12.5   no general or special law may be construed as reducing the 
 12.6   amount or rate of contribution to a police or firefighters 
 12.7   relief association to which subdivision 1a applies, by a 
 12.8   municipality or member of the association, which is required as 
 12.9   a condition for the use of public funds or the levy of taxes for 
 12.10  the support of the association.  Each association, the 
 12.11  municipality in which it is organized, and the officers of each, 
 12.12  are authorized to do all things required by this section as a 
 12.13  condition for the use of public funds or the levy of taxes for 
 12.14  the support of the association. 
 12.15     Subd. 3 13.  [CITATION.] This section may be cited as the 
 12.16  "Police and Firefighters' Relief Associations Guidelines Act of 
 12.17  1969." 
 12.18     Sec. 2.  Minnesota Statutes 2000, section 69.80, is amended 
 12.19  to read: 
 12.20     69.80 [AUTHORIZED ADMINISTRATIVE EXPENSES.] 
 12.21     (a) Notwithstanding any provision of law to the contrary, 
 12.22  the payment of the following necessary, reasonable and direct 
 12.23  expenses of maintaining, protecting and administering the 
 12.24  special fund, when provided for in the bylaws of the association 
 12.25  and approved by the board of trustees, shall constitute 
 12.26  constitutes authorized administrative expenses of a police, 
 12.27  salaried firefighters', or volunteer firefighters' relief 
 12.28  association organized under any law of this state: 
 12.29     (a) (1) office expense, including, but not limited to, 
 12.30  rent, utilities, equipment, supplies, postage, periodical 
 12.31  subscriptions, furniture, fixtures, and salaries of 
 12.32  administrative personnel; 
 12.33     (b) (2) salaries of the president, secretary, and treasurer 
 12.34  of the association, or their designees, and any other official 
 12.35  of the relief association to whom a salary is payable under 
 12.36  bylaws or articles of incorporation in effect on January 1, 
 13.1   1986, and their itemized expenses incurred as a result of 
 13.2   fulfilling their responsibilities as administrators of the 
 13.3   special fund; 
 13.4      (c) (3) tuition, registration fees, organizational dues, 
 13.5   and other authorized expenses of the officers or members of the 
 13.6   board of trustees incurred in attending educational conferences, 
 13.7   seminars, or classes relating to the administration of the 
 13.8   relief association; 
 13.9      (d) (4) audit, actuarial, medical, legal, and investment 
 13.10  and performance evaluation expenses; 
 13.11     (e) (5) reimbursement to the officers and members of the 
 13.12  board of trustees, or their designees, for reasonable and 
 13.13  necessary expenses actually paid and incurred in the performance 
 13.14  of their duties as officers or members of the board; and 
 13.15     (f) (6) premiums on fiduciary liability insurance and 
 13.16  official bonds for the officers, members of the board of 
 13.17  trustees, and employees of the relief association. 
 13.18     (b) Any other expenses of the relief association shall must 
 13.19  be paid from the general fund of the association, if one 
 13.20  exists.  If a relief association has only one fund, that 
 13.21  fund shall be deemed to be is the special fund for purposes of 
 13.22  this section.  If a relief association has a special fund and a 
 13.23  general fund, and any expense of the relief association that is 
 13.24  directly related to the purposes for which both funds were 
 13.25  established, the payment of that expense shall must be 
 13.26  apportioned between the two funds on the basis of the benefits 
 13.27  derived by each fund. 
 13.28     Sec. 3.  Minnesota Statutes 2000, section 353A.08, 
 13.29  subdivision 6a, is amended to read: 
 13.30     Subd. 6a.  [MILITARY SERVICE CONTRIBUTION AND REFUND.] A 
 13.31  person who was an active member of a local police or 
 13.32  firefighters relief association upon its consolidation with the 
 13.33  public employees retirement association, and who was otherwise 
 13.34  eligible for automatic service credit for military service under 
 13.35  sections Minnesota Statutes 2000, section 423.57 and 424.23, and 
 13.36  who has not elected the type of benefit coverage provided by the 
 14.1   public employees police and fire fund at the time of 
 14.2   consolidation, must make employee contributions under section 
 14.3   353.01, subdivision 16, paragraph (h), to receive allowable 
 14.4   service credit from the association for a military service leave 
 14.5   after the effective date of the consolidation.  A person who 
 14.6   later elects, under subdivision 3, to retain benefit coverage 
 14.7   under the bylaws of the local relief association is eligible for 
 14.8   a refund from the association at the time of retirement.  The 
 14.9   association shall refund the employee contributions plus 
 14.10  interest at the rate of six percent, compounded quarterly, from 
 14.11  the date on which contributions were made until the first day of 
 14.12  the month in which the refund is paid.  The employer shall 
 14.13  receive a refund of the employer contributions.  The association 
 14.14  shall not pay a refund to a person who later elects, under 
 14.15  subdivision 3, the type of benefit coverage provided by the 
 14.16  public employees police and fire fund or to the person's 
 14.17  employer. 
 14.18     Sec. 4.  Minnesota Statutes 2000, section 423A.17, is 
 14.19  amended to read: 
 14.20     423A.17 [CONTINUATION OF SURVIVING SPOUSE BENEFITS UPON 
 14.21  REMARRIAGE.] 
 14.22     (a) Notwithstanding a provision of section 69.48; 423.387, 
 14.23  subdivision 1; 423.58, subdivision 1; 423.810, subdivision 1; or 
 14.24  424.24, subdivision 1, or other law, article of incorporation, 
 14.25  or bylaw governing a local police or salaried firefighters 
 14.26  relief association to the contrary, the governing body of a 
 14.27  municipality may mandate the applicable local police or salaried 
 14.28  firefighters relief association to provide that a surviving 
 14.29  spouse benefit is payable for the life of the surviving spouse 
 14.30  and remains payable even in the event of the remarriage of the 
 14.31  surviving spouse. 
 14.32     (b) If the surviving spouse benefit change described in 
 14.33  paragraph (a) is made, the change applies to a surviving spouse 
 14.34  benefit payable on the effective date of the change and to the 
 14.35  potential surviving spouses of all active, deferred, or retired 
 14.36  members of the relief association who have that status on the 
 15.1   effective date of the change.  
 15.2      (c) In addition, if the surviving spouse benefit change 
 15.3   described in paragraph (a) is made a person who formerly was 
 15.4   receiving surviving spouse benefits from the relief association 
 15.5   and who had those benefits discontinued by virtue of the 
 15.6   remarriage is entitled, upon application, to a resumption of the 
 15.7   surviving spouse benefit, beginning with the last day of the 
 15.8   month following receipt of the application by the secretary of 
 15.9   the relief association.  Nothing in this section authorizes the 
 15.10  payment of a benefit amount to an estate. 
 15.11     (d) The change must be made by a municipal resolution 
 15.12  adopted by a majority vote of the municipality.  The resolution 
 15.13  must be filed by the secretary of the relief association with 
 15.14  the executive director of the legislative commission on pensions 
 15.15  and retirement, the state auditor, and the secretary of state. 
 15.16     Sec. 5.  Minnesota Statutes 2000, section 423A.171, is 
 15.17  amended to read: 
 15.18     423A.171 [BYLAW AMENDMENTS.] 
 15.19     (a) Notwithstanding a provision of section 69.48; 423.387, 
 15.20  subdivision 1; 423.58, subdivision 1; 423.810, subdivision 1; 
 15.21  423B.10; or 424.24, subdivision 1, or other law governing a 
 15.22  local police or salaried firefighters' relief association to the 
 15.23  contrary, the board of trustees of a local relief association 
 15.24  governed by section 69.77 or its successor board under chapter 
 15.25  353A or 353B, with municipal approval as provided in section 
 15.26  69.77, subdivision 2i 11, may amend the bylaws of the relief 
 15.27  association to provide that a surviving spouse benefit is 
 15.28  payable to a surviving spouse who married a deferred or retired 
 15.29  member after the member's retirement, provided the marriage 
 15.30  occurred at least five years before the death of the member. 
 15.31     (b) If the surviving spouse benefit change described in 
 15.32  paragraph (a) is made, the change applies to a surviving spouse 
 15.33  benefit payable on the effective date of the change and to the 
 15.34  potential surviving spouses of all deferred or retired members 
 15.35  of the relief association who have that status on the effective 
 15.36  date of the change. 
 16.1      (c) The bylaw amendment is not effective until a certified 
 16.2   copy of the amendment and the municipal approval has been filed 
 16.3   by the municipal clerk with the executive director of the 
 16.4   legislative commission on pensions and retirement, the state 
 16.5   auditor, and the secretary of state. 
 16.6      (d) Notwithstanding the provisions of section 353B.11, a 
 16.7   surviving spouse benefit change made under this section for a 
 16.8   relief association that has consolidated with the public 
 16.9   employees retirement association is effective upon approval by 
 16.10  the public employees retirement association and the municipality 
 16.11  pursuant to under paragraph (c). 
 16.12     Sec. 6.  Minnesota Statutes 2000, section 424A.09, is 
 16.13  amended to read: 
 16.14     424A.09 [APPLICATION TO CERTAIN RELIEF ASSOCIATIONS.] 
 16.15     This chapter shall supersede supersedes any special law 
 16.16  applicable to any municipal volunteer firefighters' relief 
 16.17  association or independent nonprofit firefighting corporation 
 16.18  specifically authorizing the relief association or nonprofit 
 16.19  firefighting corporation to exceed the service pension 
 16.20  limitations contained in Minnesota Statutes 1978, sections 69.06 
 16.21  and 69.691.  Any relief association which amended its bylaws to 
 16.22  provide for a full pro rata service pension amount at the 
 16.23  specified retirement age with 15 years service credit or 75 
 16.24  percent of the pro rata service pension amount at the specified 
 16.25  retirement age with ten years of service pursuant to under 
 16.26  Minnesota Statutes 1978, section 69.06, may continue to provide 
 16.27  the specified service pension amounts at the applicable years of 
 16.28  credited service to any member who has credit for at least ten 
 16.29  or 15 years, whichever is the applicable minimum service period 
 16.30  specified in the bylaws governing the relief association, on or 
 16.31  before December 31, 1979 notwithstanding section 424A.02.  
 16.32     Sec. 7.  [APPLICATION; BLOOMINGTON FIREFIGHTERS RELIEF 
 16.33  ASSOCIATION.] 
 16.34     To the extent that Minnesota Statutes 2000, chapter 424, 
 16.35  applied to the Bloomington firefighters relief association on 
 16.36  the day before the effective date of section 5, Minnesota 
 17.1   Statutes 2000, chapter 424, continues to apply to the 
 17.2   Bloomington firefighters relief association after that date. 
 17.3      Sec. 8.  [REVISOR INSTRUCTIONS.] 
 17.4      (a) In the next and subsequent editions of Minnesota 
 17.5   Statutes, the revisor of statutes shall not print Minnesota 
 17.6   Statutes, sections 423.41 to 423.62, but shall denote those 
 17.7   sections as "[LOCAL, CITY OF FAIRMONT, POLICE PENSIONS.]." 
 17.8      (b) In the next and subsequent editions of Minnesota 
 17.9   Statutes, the revisor of statutes shall, in each section 
 17.10  indicated in column A, replace the cross-reference specified in 
 17.11  column B with the cross-reference set forth in column C: 
 17.12     Column A             Column B              Column C
 17.13     69.021, subd. 10     69.77, subd. 2a       69.77, subd. 3
 17.14     69.021, subd. 10     69.77, subd. 2b       69.77, subd. 4
 17.15     69.021, subd. 10     69.77, subd. 2c       69.77, subd. 5
 17.16     299A.465, subd. 5    424.03                Minnesota Statutes,
 17.17                                                  2000, 424.03 
 17.18     353A.07, subd. 6     69.77, subd. 2a       69.77, subd. 3 
 17.19     353A.09, subd. 4     69.77, subd. 2a       69.77, subd. 3 
 17.20     356.216              69.77, subd. 2b       69.77, subd. 4 
 17.21     356.219, subd. 2     69.77, subd. 2g       69.77, subd. 9 
 17.22     423.01, subd. 2      69.77, subd. 2b       69.77, subd. 4 
 17.23     423A.18              69.77, subd. 2i       69.77, subd. 11 
 17.24     423A.19, subd. 4     69.77, subd. 2i       69.77, subd. 11 
 17.25     423B.06, subd. 1     69.77, subd. 2a       69.77, subd. 3 
 17.26     423B.06, subd. 1     69.77, subd. 2b       69.77, subd. 4 
 17.27     423B.06, subd. 1     69.77, subd. 2c       69.77, subd. 5 
 17.28     423B.06, subd. 1     69.77, subd. 2d       69.77, subd. 6 
 17.29     423B.06, subd. 1     69.77, subd. 2e       69.77, subd. 7 
 17.30     423B.06, subd. 1     69.77, subd. 2f       69.77, subd. 8 
 17.31     423B.21, subd. 1     69.77, subd. 2b       69.77, subd. 4 
 17.32     Sec. 9.  [REPEALER; OBSOLETE POLICE AND FIRE PENSION LAWS.] 
 17.33     Subdivision 1.  [FIRST CLASS CITY FIRE; 
 17.34  REPEALER.] Minnesota Statutes 2000, sections 69.25; 69.26; 
 17.35  69.27; 69.28; 69.29; 69.30; 69.32; 69.361; 69.37; 69.38; 69.39; 
 17.36  69.40; 69.41; 69.42; 69.43; 69.44; 69.45; 69.46; 69.47; 69.48; 
 18.1   69.49; 69.50; 69.51; 69.52; 69.53; and 69.62, are repealed. 
 18.2      Subd. 2.  [THIRD CLASS CITY POLICE; REPEALER.] Minnesota 
 18.3   Statutes 2000, sections 423.37; 423.371; 423.372; 423.373; 
 18.4   423.374; 423.375; 423.377; 423.378; 423.379; 423.38; 423.381; 
 18.5   423.382; 423.383; 423.384; 423.385; 423.386; 423.387; 423.388; 
 18.6   423.389; 423.39; 423.391; and 423.392, are repealed. 
 18.7      Subd. 3.  [SECOND CLASS CITY POLICE; REPEALER.] Minnesota 
 18.8   Statutes 2000, sections 423.801; 423.802; 423.803; 423.804; 
 18.9   423.805; 423.806; 423.808; 423.809; 423.810; 423.812; 423.813; 
 18.10  423.814; and 423.90, are repealed. 
 18.11     Subd. 4.  [SECOND CLASS CITY FIRE; REPEALER.] Minnesota 
 18.12  Statutes 2000, sections 424.01; 424.02; 424.03; 424.04; 424.05; 
 18.13  424.06; 424.08; 424.14; 424.15; 424.16; 424.165; 424.17; 424.18; 
 18.14  424.19; 424.20; 424.21; 424.22; 424.23; 424.24; 424.25; 424.27; 
 18.15  424.28; and 424.29, are repealed. 
 18.16     Subd. 5.  [ALBERT LEA FIRE; REPEALER.] Laws 1943, chapters 
 18.17  170 and 397; Laws 1947, chapter 274; Laws 1949, chapters 87 and 
 18.18  281; Laws 1951, chapters 233, 420, and 435; Laws 1953, chapters 
 18.19  44 and 406; Laws 1957, chapter 127; Laws 1959, chapter 207; Laws 
 18.20  1963, chapter 643; Laws 1984, chapter 574, section 23; Laws 
 18.21  1985, chapter 261, section 36; and Laws 1993, chapter 72, are 
 18.22  repealed. 
 18.23     Subd. 6.  [ALBERT LEA POLICE; REPEALER.] Laws 1965, chapter 
 18.24  174; Laws 1976, chapter 247; and Laws 1985, chapter 261, section 
 18.25  36, are repealed. 
 18.26     Subd. 7.  [ANOKA POLICE; REPEALER.] Laws 1965, chapter 174; 
 18.27  Laws 1973, chapter 587; Laws 1978, chapter 563, section 28; and 
 18.28  Laws 1981, chapter 224, sections 263 and 264, are repealed. 
 18.29     Subd. 8.  [AUSTIN FIRE; REPEALER.] Laws 1943, chapter 170; 
 18.30  Laws 1949, chapter 87; Laws 1951, chapters 45 and 435; Laws 
 18.31  1957, chapter 164; Laws 1963, chapter 36; Laws 1965, chapter 
 18.32  418; Laws 1976, chapter 36; Laws 1978, chapter 579; Laws 1980, 
 18.33  chapter 341, sections 9 and 10; Laws 1981, chapter 224, sections 
 18.34  268 and 270; Laws 1992, chapter 455; and Laws 1994, chapter 490, 
 18.35  are repealed. 
 18.36     Subd. 9.  [AUSTIN POLICE; REPEALER.] Laws 1943, chapter 
 19.1   432; Laws 1976, chapter 36; Laws 1980, chapter 341, sections 9 
 19.2   and 10; and Laws 1981, chapter 224, sections 268 and 270, are 
 19.3   repealed. 
 19.4      Subd. 10.  [BLOOMINGTON POLICE; REPEALER.] Laws 1965, 
 19.5   chapter 498; Laws 1975, chapter 121; Laws 1978, chapter 563, 
 19.6   section 17; Laws 1980, chapter 341, section 6; Laws 1981, 
 19.7   chapter 224, section 240; and Laws 1993, chapter 202, article 1, 
 19.8   are repealed. 
 19.9      Subd. 11.  [BRAINERD POLICE; REPEALER.] Laws 1959, chapter 
 19.10  437, is repealed. 
 19.11     Subd. 12.  [BROOKLYN CENTER POLICE; REPEALER.] Laws 1967, 
 19.12  chapter 736; and Laws 1978, chapter 563, section 18, are 
 19.13  repealed. 
 19.14     Subd. 13.  [BUHL POLICE; REPEALER.] Laws 1957, chapter 630; 
 19.15  Laws 1975, chapter 425; Laws 1976, chapter 247; Laws 1981, 
 19.16  chapter 68, section 43; Laws 1982, chapter 578, article II, 
 19.17  section 1, subdivision 8; Laws 1984, chapter 574, sections 18 
 19.18  and 20; Laws 1985, chapter 261, section 18; and Laws 1986, 
 19.19  chapter 458, section 23, are repealed. 
 19.20     Subd. 14.  [CHISHOLM FIRE; REPEALER.] Laws 1935, chapter 
 19.21  208; Laws 1937, chapters 132 and 253; Laws 1939, chapter 124; 
 19.22  Laws 1947, chapter 329; Laws 1951, chapter 144; Laws 1953, 
 19.23  chapter 391; Laws 1955, chapters 293 and 827; Laws 1961, chapter 
 19.24  631; Laws 1971, chapter 809; Laws 1973, chapter 433; Laws 1976, 
 19.25  chapter 78; Laws 1978, chapter 648; Laws 1979, chapter 131, 
 19.26  section 3; Laws 1981, chapter 68, sections 36 and 37; and Laws 
 19.27  1991, chapter 269, article 2, section 12, are repealed. 
 19.28     Subd. 15.  [CHISHOLM POLICE; REPEALER.] Laws 1945, chapter 
 19.29  74; Laws 1949, chapter 164; Laws 1953, chapter 235; Laws 1959, 
 19.30  chapter 211; Laws 1961, chapter 290; Laws 1971, chapter 810; 
 19.31  Laws 1973, chapter 433; Laws 1976, chapter 78; Laws 1978, 
 19.32  chapters 563, section 27, and 648; Laws 1979, chapter 131, 
 19.33  section 3; Laws 1981, chapters 68, sections 31, 32, and 33; and 
 19.34  224, section 261; and Laws 1991, chapter 269, article 2, section 
 19.35  12, are repealed. 
 19.36     Subd. 16.  [CLOQUET FIRE; REPEALER.] Laws 1941, chapter 
 20.1   196; Laws 1953, chapter 253; Laws 1955, chapter 42; Laws 1961, 
 20.2   chapter 295; Laws 1965, chapter 594; Laws 1967, chapter 783; and 
 20.3   Laws 1969, chapter 716, are repealed. 
 20.4      Subd. 17.  [COLUMBIA HEIGHTS FIRE; REPEALER.] Laws 1965, 
 20.5   chapter 605; Laws 1975, chapter 424; Laws 1977, chapter 374, 
 20.6   sections 38, 39, 40, 41, 42, 43, 44, 45, 46, 47, 48, 49, 50, 51, 
 20.7   52, 53, 54, 55, 56, 57, 58, 59, and 60; Laws 1978, chapter 563, 
 20.8   sections 29 and 30; and Laws 1981, chapter 224, section 267, are 
 20.9   repealed. 
 20.10     Subd. 18.  [COLUMBIA HEIGHTS POLICE; REPEALER.] Laws 1977, 
 20.11  chapter 374, sections 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 
 20.12  14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 
 20.13  30, 31, 32, 33, 34, 35, 36, and 37; and Laws 1993, chapter 126, 
 20.14  are repealed. 
 20.15     Subd. 19.  [CROOKSTON FIRE; REPEALER.] Laws 1949, chapter 
 20.16  378; Laws 1957, chapter 144; Laws 1963, chapter 636; Laws 1971, 
 20.17  chapter 51; Laws 1978, chapter 563, sections 24, 25, and 26; 
 20.18  Laws 1981, chapter 224, sections 252 and 253; and Laws 1983, 
 20.19  chapter 291, sections 9, 10, 11, 12, 13, 14, 15, 16, and 17, are 
 20.20  repealed. 
 20.21     Subd. 20.  [CROOKSTON POLICE; REPEALER.] Laws 1976, chapter 
 20.22  85; Laws 1977, chapter 275; Laws 1983, chapter 84, section 1; 
 20.23  and Laws 1984, chapter 574, section 26, are repealed. 
 20.24     Subd. 21.  [CRYSTAL POLICE; REPEALER.] Laws 1963, chapter 
 20.25  619; Laws 1969, chapter 1087; and Laws 1980, chapter 607, 
 20.26  article XV, section 23, are repealed. 
 20.27     Subd. 22.  [DULUTH FIRE; REPEALER.] Laws 1917, chapter 196; 
 20.28  Laws 1919, chapter 515; Laws 1955, chapter 188; Laws 1961, 
 20.29  chapter 186; Laws 1963, chapter 208; Laws 1965, chapter 179; 
 20.30  Laws 1967, chapter 732; Laws 1975, chapter 127; Laws 1976, 
 20.31  chapter 78, section 4; Laws 1977, chapter 164, section 3; Laws 
 20.32  1992, chapter 448, section 1; and Laws 1994, chapter 474, are 
 20.33  repealed. 
 20.34     Subd. 23.  [DULUTH POLICE; REPEALER.] Laws 1915, chapter 
 20.35  68; Laws 1921, chapter 118; Laws 1923, chapter 54; Laws 1925, 
 20.36  chapter 197; Laws 1943, chapter 267; Laws 1949, chapter 153; 
 21.1   Laws 1953, chapter 91; Laws 1955, chapter 187; Laws 1959, 
 21.2   chapter 191; Laws 1975, chapter 408; Laws 1976, chapter 99; Laws 
 21.3   1980, chapter 600, section 11; and Laws 1992, chapter 448, are 
 21.4   repealed.  
 21.5      Subd. 24.  [EVELETH FIRE; REPEALER.] Laws 1935, chapter 
 21.6   208; Laws 1937, chapters 132 and 253; Laws 1939, chapter 124; 
 21.7   Laws 1941, chapters 74 and 182; Laws 1947, chapter 329; Laws 
 21.8   1951, chapter 144; Laws 1953, chapter 391; Laws 1955, chapter 
 21.9   293; Laws 1961, chapter 620; Laws 1963, chapter 670; and Laws 
 21.10  1969, chapter 552, are repealed. 
 21.11     Subd. 25.  [EVELETH POLICE; REPEALER.] Laws 1965, chapter 
 21.12  636; and Laws 1969, chapter 670, are repealed. 
 21.13     Subd. 26.  [FARIBAULT FIRE; REPEALER.] Laws 1947, chapter 
 21.14  43; Laws 1949, chapter 154; Laws 1951, chapter 43; Laws 1957, 
 21.15  chapter 36; Laws 1961, chapter 443; Laws 1967, chapter 807; Laws 
 21.16  1969, chapter 614; Laws 1975, chapter 389; Laws 1984, chapter 
 21.17  574, section 22; Laws 1985, chapter 259, sections 5 and 6; Laws 
 21.18  1985, First Special Session chapter 16, article 2, section 6; 
 21.19  and Laws 1993, chapter 112, section 2, are repealed. 
 21.20     Subd. 27.  [FARIBAULT POLICE; REPEALER.] Laws 1985, chapter 
 21.21  259, sections 5 and 6; Laws 1985, First Special Session chapter 
 21.22  16, article 2, section 6, are repealed. 
 21.23     Subd. 28.  [FRIDLEY FIRE; REPEALER.] Laws 1969, chapter 
 21.24  594, is repealed. 
 21.25     Subd. 29.  [FRIDLEY POLICE; REPEALER.] Laws 1977, chapter 
 21.26  83, is repealed. 
 21.27     Subd. 30.  [HIBBING FIRE; REPEALER.] Laws 1935, chapter 
 21.28  192; Laws 1943, chapter 413; Laws 1945, chapter 182; Laws 1947, 
 21.29  chapter 101; Laws 1951, chapter 48; Laws 1955, chapter 294; Laws 
 21.30  1959, chapter 208; Laws 1967, chapter 816; Laws 1969, chapter 
 21.31  686; Laws 1971, chapter 614; Laws 1975, chapter 254, sections 5 
 21.32  and 6; Laws 1977, chapter 169; Laws 1981, chapter 224, section 
 21.33  260; Laws 1982, chapter 443; Laws 1987, chapter 372, article 2, 
 21.34  sections 7, 8, and 9; and Laws 1991, chapter 269, article 2, 
 21.35  sections 12 and 13, are repealed. 
 21.36     Subd. 31.  [HIBBING POLICE; REPEALER.] Laws 1931, chapter 
 22.1   48; Laws 1933, chapter 122; Laws 1939, chapter 304; Laws 1945, 
 22.2   chapter 300; Laws 1947, chapter 40; Laws 1949, chapter 191; Laws 
 22.3   1951, chapter 243; Laws 1953, chapter 401; Laws 1957, chapter 
 22.4   793; Laws 1965, chapter 536; Laws 1967, chapter 678; Laws 1969, 
 22.5   chapter 672; Laws 1971, chapter 807; Laws 1983, chapter 74; Laws 
 22.6   1987, chapter 372, article 2, section 7; and Laws 1991, chapter 
 22.7   269, article 2, section 12, are repealed. 
 22.8      Subd. 32.  [MANKATO FIRE; REPEALER.] Laws 1949, chapter 
 22.9   144; Laws 1953, chapter 37; Laws 1957, chapter 16; Laws 1971, 
 22.10  chapter 407; Extra Session Laws 1971, chapter 41; Laws 1981, 
 22.11  chapter 224, sections 258 and 259; and Laws 1989, chapter 319, 
 22.12  article 11, section 3, are repealed. 
 22.13     Subd. 33.  [MANKATO POLICE; REPEALER.] Laws 1971, chapter 
 22.14  407; Extra Session Laws 1971, chapter 41; Laws 1981, chapter 
 22.15  224, sections 258 and 259; Laws 1986, chapter 458, section 34; 
 22.16  and Laws 1987, chapter 372, article 2, section 12, are repealed. 
 22.17     Subd. 34.  [MOORHEAD FIRE; REPEALER.] Laws 1951, chapter 
 22.18  499; Laws 1955, chapter 75; Laws 1965, chapter 190; Laws 1969, 
 22.19  chapter 138; Laws 1975, chapter 120; Laws 1978, chapter 563, 
 22.20  sections 12 and 13; Laws 1979, chapter 216, sections 34, 35, 36, 
 22.21  37, 38, 39, 40, 41, 42, 43, and 44; Laws 1981, chapter 224, 
 22.22  section 236; and Laws 1982, chapter 578, article III, section 
 22.23  18, are repealed. 
 22.24     Subd. 35.  [MOORHEAD POLICE; REPEALER.] Laws 1945, chapter 
 22.25  277; Laws 1967, chapter 775; Laws 1978, chapter 563, section 19; 
 22.26  Laws 1979, chapter 216, sections 27, 28, 29, 30, 31, and 44; 
 22.27  Laws 1980, chapter 600, section 16; Laws 1981, chapter 224, 
 22.28  section 243; and Laws 1982, chapter 578, article III, section 
 22.29  18, are repealed. 
 22.30     Subd. 36.  [NEW ULM POLICE; REPEALER.] Laws 1965, chapter 
 22.31  174; Laws 1974, chapter 251; Laws 1981, chapter 224, sections 
 22.32  265 and 266; and Laws 1985, chapter 261, section 20, are 
 22.33  repealed. 
 22.34     Subd. 37.  [RED WING FIRE; REPEALER.] Laws 1953, chapter 
 22.35  348; Laws 1955, chapter 49; Laws 1957, chapter 10; Laws 1961, 
 22.36  chapter 300; Laws 1965, chapter 604; Laws 1973, chapter 359; 
 23.1   Laws 1975, chapter 254, sections 1, 2, 3, and 4; and Laws 1984, 
 23.2   chapter 574, section 24, are repealed. 
 23.3      Subd. 38.  [RED WING POLICE; REPEALER.] Laws 1965, chapter 
 23.4   174; Laws 1973, chapter 346; Laws 1983, chapter 291, section 8; 
 23.5   and Laws 1994, chapter 410, are repealed. 
 23.6      Subd. 39.  [RICHFIELD FIRE; REPEALER.] Laws 1955, chapter 
 23.7   348; Extra Session Laws 1961, chapter 28; Laws 1963, chapter 
 23.8   464; Laws 1967, chapter 798; Laws 1978, chapter 563, sections 20 
 23.9   and 21; Laws 1980, chapter 607, article XV, section 23; Laws 
 23.10  1981, chapter 224, section 244; and Laws 1997, chapter 241, 
 23.11  article 2, sections 2, 3, 4, 5, 6, 9, 10, 13, 14, and 20, are 
 23.12  repealed. 
 23.13     Subd. 40.  [RICHFIELD POLICE; REPEALER.] Laws 1957, chapter 
 23.14  455; Laws 1965, chapter 458; Laws 1978, chapter 563, section 16; 
 23.15  Laws 1980, chapter 607, article XV, section 23; Laws 1981, 
 23.16  chapter 224, section 239; and Laws 1991, chapter 96, are 
 23.17  repealed. 
 23.18     Subd. 41.  [ROCHESTER FIRE; REPEALER.] Laws 1959, chapter 
 23.19  131; Laws 1969, chapter 694; Laws 1978, chapter 563, section 14; 
 23.20  Laws 1980, chapter 600, sections 18 and 22; and Laws 1981, 
 23.21  chapter 224, section 237, are repealed. 
 23.22     Subd. 42.  [ROCHESTER POLICE; REPEALER.] Laws 1969, chapter 
 23.23  641; Laws 1975, chapter 368, section 54; Laws 1978, chapters 
 23.24  563, section 23; and 793, section 96; Laws 1980, chapter 600, 
 23.25  sections 18 and 22; and Laws 1981, chapter 224, section 248, are 
 23.26  repealed. 
 23.27     Subd. 43.  [ST. CLOUD FIRE; REPEALER.] Laws 1961, chapter 
 23.28  343; Laws 1963, chapter 453; Laws 1967, chapter 702; Laws 1974, 
 23.29  chapter 382; Laws 1977, chapter 270; Laws 1978, chapter 690, 
 23.30  sections 9 and 10; and Laws 1982, chapter 402, are repealed. 
 23.31     Subd. 44.  [ST. CLOUD POLICE; REPEALER.] Laws 1973, chapter 
 23.32  432; Laws 1980, chapter 341, sections 2, 3, 4, and 5; Laws 1984, 
 23.33  chapter 574, section 25; and Laws 1999, chapter 222, article 3, 
 23.34  section 6, are repealed. 
 23.35     Subd. 45.  [ST. LOUIS PARK FIRE; REPEALER.] Laws 1967, 
 23.36  chapter 730; Laws 1969, chapter 576; Laws 1978, chapter 563, 
 24.1   section 22; Laws 1981, chapter 224, section 247; and Laws 1985, 
 24.2   chapter 261, sections 32, 33, 34, and 35, are repealed. 
 24.3      Subd. 46.  [ST. LOUIS PARK POLICE; REPEALER.] Laws 1963, 
 24.4   chapter 454; Laws 1980, chapter 600, section 17; Laws 1984, 
 24.5   chapter 574, section 19; and Laws 1990, chapter 589, article 1, 
 24.6   section 7, are repealed. 
 24.7      Subd. 47.  [ST. PAUL FIRE; REPEALER.] Laws 1917, chapter 
 24.8   196; Laws 1919, chapter 515; Laws 1955, chapter 375; Laws 1957, 
 24.9   chapters 256 and 257; Laws 1961, chapter 376; Laws 1963, chapter 
 24.10  221; Laws 1965, chapter 790; Laws 1967, chapters 644 and 708; 
 24.11  Laws 1969, chapters 443, 669, and 671; Laws 1973, chapter 287; 
 24.12  Laws 1975, chapter 423; Laws 1977, chapter 164, section 1; Laws 
 24.13  1981, chapter 68, section 35; Laws 1989, chapter 319, article 
 24.14  11, section 12; Laws 1992, chapters 422 and 563, sections 3, 4, 
 24.15  and 5; Laws 1993, chapter 110; Laws 1996, chapter 448, article 
 24.16  2, section 1; and Laws 1997, chapter 241, article 2, sections 11 
 24.17  and 15, are repealed. 
 24.18     Subd. 48.  [ST. PAUL POLICE; REPEALER.] Special Laws 1889, 
 24.19  chapter 425; Special Laws 1891, chapter 11; Laws 1897, chapters 
 24.20  389 and 390; Laws 1919, chapter 68; Laws 1921, chapter 118; Laws 
 24.21  1923, chapter 54; Laws 1925, chapter 197; Laws 1955, chapter 
 24.22  151; Laws 1961, chapters 434 and 435, section 2; Laws 1963, 
 24.23  chapter 271; Laws 1965, chapter 465; Laws 1969, chapters 442, 
 24.24  668, and 671; Laws 1971, chapter 549; Laws 1973, chapter 286; 
 24.25  Laws 1980, chapter 600, sections 12, 13, 14, and 15; Laws 1981, 
 24.26  chapter 68, section 34; Laws 1983, chapter 47; Laws 1988, 
 24.27  chapter 709, article 8, section 5; Laws 1989, chapter 319, 
 24.28  article 11, sections 2 and 12; Laws 1992, chapters 393, section 
 24.29  1; 563, section 5; and 586, section 1; Laws 1994, chapter 409; 
 24.30  Laws 1996, chapter 448, article 2, section 1; and Laws 1997, 
 24.31  chapter 241, article 2, sections 11 and 15, are repealed. 
 24.32     Subd. 49.  [SOUTH ST. PAUL FIRE; REPEALER] Laws 1943, 
 24.33  chapter 397; Laws 1947, chapter 274; Laws 1949, chapter 281; 
 24.34  Laws 1951, chapters 233 and 420; Laws 1953, chapters 44 and 406; 
 24.35  Laws 1957, chapter 127; Laws 1961, chapter 747; Laws 1963, 
 24.36  chapter 715; Laws 1965, chapter 457; Laws 1969, chapter 849; and 
 25.1   Laws 1971, chapter 178, are repealed. 
 25.2      Subd. 50.  [SOUTH ST. PAUL POLICE; REPEALER.] Laws 1994, 
 25.3   chapter 541, section 3, is repealed. 
 25.4      Subd. 51.  [THIEF RIVER FALLS POLICE; REPEALER.] Laws 1981, 
 25.5   chapters 68, sections 41 and 42; 224, sections 272 and 273; Laws 
 25.6   1985, chapter 261, section 14; and Laws 1992, chapter 431, 
 25.7   section 1, are repealed. 
 25.8      Subd. 52.  [VIRGINIA POLICE; REPEALER.] Laws 1935, chapters 
 25.9   92 and 259; Laws 1937, chapter 197; Laws 1949, chapter 235; Laws 
 25.10  1965, chapter 174; Laws 1982, chapter 574, sections 3, 4, 5, 6, 
 25.11  and 8; Laws 1985, chapter 261, sections 15 and 16; Laws 1989, 
 25.12  chapter 319, article 11, section 4; and Laws 1992, chapter 392, 
 25.13  section 1, are repealed. 
 25.14     Subd. 53.  [WEST ST. PAUL FIRE; REPEALER.] Laws 1961, 
 25.15  chapter 399; Laws 1965, chapter 540; Laws 1982, chapter 610, 
 25.16  sections 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, and 20; 
 25.17  and Laws 1984, chapter 574, section 33, are repealed. 
 25.18     Subd. 54.  [WEST ST. PAUL POLICE; REPEALER] Laws 1965, 
 25.19  chapter 174; Laws 1967, chapter 751; Laws 1981, chapter 297, 
 25.20  sections 1 and 2; Laws 1987, chapter 372, article 2, section 10; 
 25.21  and Laws 1995, chapter 262, article 10, section 4, are repealed. 
 25.22     Subd. 55.  [WINONA FIRE; REPEALER.] Extra Session Laws 
 25.23  1961, chapter 80; Laws 1963, chapter 443; and Laws 1967, chapter 
 25.24  848, are repealed. 
 25.25     Subd. 56.  [WINONA POLICE; REPEALERS.] Laws 1959, chapter 
 25.26  108; Extra Session Laws 1961, chapter 80; Laws 1977, chapter 
 25.27  429, section 62; Laws 1986, chapter 359, sections 22, 23, 24, 
 25.28  and 25; and Laws 1988, chapter 709, article 9, section 5, are 
 25.29  repealed. 
 25.30     Subd. 57.  [OTHER REPEALER.] Minnesota Statutes 2000, 
 25.31  sections 69.78; 297I.10, subdivision 2; and 423A.03, are 
 25.32  repealed. 
 25.33     Sec. 10.  [EFFECTIVE DATE.] 
 25.34     Sections 1 to 9 are effective on July 1, 2002. 
 25.35                             ARTICLE 2
 25.36                 RETIREMENT PLAN ALLOWABLE SERVICE 
 26.1                      CREDIT FOR STRIKE PERIODS 
 26.2      Section 1.  Minnesota Statutes 2001 Supplement, section 
 26.3   352.01, subdivision 11, is amended to read: 
 26.4      Subd. 11.  [ALLOWABLE SERVICE.] "Allowable service" means:  
 26.5      (1) Service by an employee for which on or before July 1, 
 26.6   1957, the employee was entitled to allowable service credit on 
 26.7   the records of the system by reason of employee contributions in 
 26.8   the form of salary deductions, payments in lieu of salary 
 26.9   deductions, or in any other manner authorized by Minnesota 
 26.10  Statutes 1953, chapter 352, as amended by Laws 1955, chapter 239.
 26.11     (2) Service by an employee for which on or before July 1, 
 26.12  1961, the employee chose to obtain credit for service by making 
 26.13  payments to the fund under Minnesota Statutes 1961, section 
 26.14  352.24. 
 26.15     (3) Except as provided in clauses (8) and (9), service by 
 26.16  an employee after July 1, 1957, for any calendar month in which 
 26.17  the employee is paid salary from which deductions are made, 
 26.18  deposited, and credited in the fund, including deductions made, 
 26.19  deposited, and credited as provided in section 352.041. 
 26.20     (4) Except as provided in clauses (8) and (9), service by 
 26.21  an employee after July 1, 1957, for any calendar month for which 
 26.22  payments in lieu of salary deductions are made, deposited, and 
 26.23  credited in the fund, as provided in section 352.27 and 
 26.24  Minnesota Statutes 1957, section 352.021, subdivision 4. 
 26.25     For purposes of clauses (3) and (4), except as provided in 
 26.26  clauses (8) and (9), any salary paid for a fractional part of 
 26.27  any calendar month, including the month of separation from state 
 26.28  service, is deemed the compensation for the entire calendar 
 26.29  month. 
 26.30     (5) The period of absence from their duties by employees 
 26.31  who are temporarily disabled because of injuries incurred in the 
 26.32  performance of duties and for which disability the state is 
 26.33  liable under the workers' compensation law until the date 
 26.34  authorized by the director for the commencement of payments of a 
 26.35  total and permanent disability benefit from the retirement fund. 
 26.36     (6) Service covered by a refund repaid as provided in 
 27.1   section 352.23 or 352D.05, subdivision 4, except service 
 27.2   rendered as an employee of the adjutant general for which the 
 27.3   person has credit with the federal civil service retirement 
 27.4   system. 
 27.5      (7) Service before July 1, 1978, by an employee of the 
 27.6   transit operating division of the metropolitan transit 
 27.7   commission or by an employee on an authorized leave of absence 
 27.8   from the transit operating division of the metropolitan transit 
 27.9   commission who is employed by the labor organization which is 
 27.10  the exclusive bargaining agent representing employees of the 
 27.11  transit operating division, which was credited by the 
 27.12  metropolitan transit commission-transit operating division 
 27.13  employees retirement fund or any of its predecessor plans or 
 27.14  funds as past, intermediate, future, continuous, or allowable 
 27.15  service as defined in the metropolitan transit 
 27.16  commission-transit operating division employees retirement fund 
 27.17  plan document in effect on December 31, 1977. 
 27.18     (8) Service after July 1, 1983, by an employee who is 
 27.19  employed on a part-time basis for less than 50 percent of full 
 27.20  time, for which the employee is paid salary from which 
 27.21  deductions are made, deposited, and credited in the fund, 
 27.22  including deductions made, deposited, and credited as provided 
 27.23  in section 352.041 or for which payments in lieu of salary 
 27.24  deductions are made, deposited, and credited in the fund as 
 27.25  provided in section 352.27 shall be credited on a fractional 
 27.26  basis either by pay period, monthly, or annually based on the 
 27.27  relationship that the percentage of salary earned bears to a 
 27.28  full-time salary, with any salary paid for the fractional 
 27.29  service credited on the basis of the rate of salary applicable 
 27.30  for a full-time pay period, month, or a full-time year.  For 
 27.31  periods of part-time service that is duplicated service credit, 
 27.32  section 356.30, subdivision 1, clauses (i) and (j), govern. 
 27.33     Allowable service determined and credited on a fractional 
 27.34  basis shall be used in calculating the amount of benefits 
 27.35  payable, but service as determined on a fractional basis must 
 27.36  not be used in determining the length of service required for 
 28.1   eligibility for benefits.  
 28.2      (9) Any period of authorized leave of absence without pay 
 28.3   that does not exceed one year and for which the employee 
 28.4   obtained credit by payment to the fund in lieu of salary 
 28.5   deductions.  To obtain credit, the employee shall pay an amount 
 28.6   equal to the employee and employer contribution rate in section 
 28.7   352.04, subdivisions 2 and 3, multiplied by the employee's 
 28.8   hourly rate of salary on the date of return from leave of 
 28.9   absence and by the days and months of the leave of absence 
 28.10  without pay for which the employee wants allowable service 
 28.11  credit.  The employing department, at its option, may pay the 
 28.12  employer amount on behalf of its employees.  Payments made under 
 28.13  this clause must include interest at an annual rate of 8.5 
 28.14  percent compounded annually from the date of termination of the 
 28.15  leave of absence to the date payment is made unless payment is 
 28.16  completed within one year of the return from leave of absence. 
 28.17     (10) A period purchased under section 356.555. 
 28.18     (11) A period of time during which the employee was on 
 28.19  strike without pay, not to exceed a period of one year, if the 
 28.20  employee makes a payment in lieu of salary deductions or makes a 
 28.21  prior service credit purchase payment, whichever applies.  If 
 28.22  the payment is made within 12 months, the payment by the 
 28.23  employee must be an amount equal to the employee and employer 
 28.24  contribution rates set forth in section 352.04, subdivisions 2 
 28.25  and 3, applied to the employee's rate of salary in effect on the 
 28.26  conclusion of the strike for the period of the strike without 
 28.27  pay, plus compound interest at a monthly rate of 0.71 percent 
 28.28  from the last day of the strike until the date of payment.  If 
 28.29  the payment is not made within 12 months, the payment must be in 
 28.30  an amount equal to the payment amount determined under section 
 28.31  356.55 or 356.551, whichever applies. 
 28.32     Sec. 2.  Minnesota Statutes 2001 Supplement, section 
 28.33  353.01, subdivision 16, is amended to read: 
 28.34     Subd. 16.  [ALLOWABLE SERVICE; LIMITS AND COMPUTATION.] (a) 
 28.35  "Allowable service" means: 
 28.36     (1) service during years of actual membership in the course 
 29.1   of which employee contributions were made, periods covered by 
 29.2   payments in lieu of salary deductions under section 353.35; 
 29.3      (2) service in years during which the public employee was 
 29.4   not a member but for which the member later elected, while a 
 29.5   member, to obtain credit by making payments to the fund as 
 29.6   permitted by any law then in effect; 
 29.7      (3) a period of authorized leave of absence with pay from 
 29.8   which deductions for employee contributions are made, deposited, 
 29.9   and credited to the fund; 
 29.10     (4) a period of authorized personal, parental, or medical 
 29.11  leave of absence without pay, including a leave of absence 
 29.12  covered under the federal Family Medical Leave Act, that does 
 29.13  not exceed one year, and during or for which a member obtained 
 29.14  full or fractional service credit for each month in the leave 
 29.15  period by payments to the fund made in place of salary 
 29.16  deductions.  The payments must be made in an amount or amounts 
 29.17  based on the member's average salary on which deductions were 
 29.18  paid for the last six months of public service, or for that 
 29.19  portion of the last six months while the member was in public 
 29.20  service, to apply to the period in either case that immediately 
 29.21  precedes the commencement of the leave of absence.  If the 
 29.22  employee elects to pay the employee contributions for the period 
 29.23  of any authorized personal, parental, or medical leave of 
 29.24  absence without pay, or for any portion of the leave, the 
 29.25  employee shall also, as a condition to the exercise of the 
 29.26  election, pay to the fund an amount equivalent to the required 
 29.27  employer and the additional employer contributions, if any, for 
 29.28  the employee.  The payment must be made within one year from the 
 29.29  expiration of the leave of absence or within 20 days after 
 29.30  termination of public service under subdivision 11a.  The 
 29.31  employer, if by appropriate action of its governing body, which 
 29.32  is made a part of its official records, and which is adopted 
 29.33  before the date of the first payment of the employee 
 29.34  contribution, may certify to the association in writing its 
 29.35  commitment to pay the employer and additional employer 
 29.36  contributions from the proceeds of a tax levy made under section 
 30.1   353.28.  Payments under this paragraph must include interest at 
 30.2   an annual rate of 8.5 percent compounded annually from the date 
 30.3   of the termination of the leave of absence to the date payment 
 30.4   is made.  An employee shall return to public service and render 
 30.5   a minimum of three months of allowable service in order to be 
 30.6   eligible to pay employee and employer contributions for a 
 30.7   subsequent authorized leave of absence without pay.  Upon 
 30.8   payment, the employee must be granted allowable service credit 
 30.9   for full calendar months or fractions of a month during the 
 30.10  leave period as described in paragraph (d), clauses (1) and (2), 
 30.11  based on the salary or the compensated hours used in computing 
 30.12  the payment amount; 
 30.13     (5) a periodic, repetitive leave that is offered to all 
 30.14  employees of a governmental subdivision.  The leave program may 
 30.15  not exceed 208 hours per annual normal work cycle as certified 
 30.16  to the association by the employer.  A participating member 
 30.17  obtains service credit by making employee contributions in an 
 30.18  amount or amounts based on the member's average salary that 
 30.19  would have been paid if the leave had not been taken.  The 
 30.20  employer shall pay the employer and additional employer 
 30.21  contributions on behalf of the participating member.  The 
 30.22  employee and the employer are responsible to pay interest on 
 30.23  their respective shares at the rate of 8.5 percent a year, 
 30.24  compounded annually, from the end of the normal cycle until full 
 30.25  payment is made.  An employer shall also make the employer and 
 30.26  additional employer contributions, plus 8.5 percent interest, 
 30.27  compounded annually, on behalf of an employee who makes employee 
 30.28  contributions but terminates public service.  The employee 
 30.29  contributions must be made within one year after the end of the 
 30.30  annual normal working cycle or within 20 days after termination 
 30.31  of public service, whichever is sooner.  The association shall 
 30.32  prescribe the manner and forms to be used by a governmental 
 30.33  subdivision in administering a periodic, repetitive leave.  Upon 
 30.34  payment, the member must be granted allowable service credit for 
 30.35  full calendar months or fractions of a month during the leave 
 30.36  period as described in paragraph (d), clauses (1) and (2), based 
 31.1   on the salary or the compensated hours used in computing the 
 31.2   payment amount; 
 31.3      (6) an authorized temporary layoff under subdivision 12.  
 31.4   For temporary layoffs that begin before January 1, 2002, 
 31.5   allowable service credit is limited to three months allowable 
 31.6   service per authorized temporary layoff in one calendar year.  
 31.7   For temporary layoffs that begin on or after January 1, 2002, 
 31.8   allowable service credit for the calendar month in which the 
 31.9   member does not receive salary due to the layoff must be 
 31.10  determined using the following formula: 
 31.11     (i) members who earned one month of allowable service 
 31.12  credit for each of the nine calendar months of compensated 
 31.13  employment with the governmental subdivision authorizing the 
 31.14  layoff that immediately preceded the layoff shall receive one 
 31.15  month of allowable service credit, limited to three months of 
 31.16  allowable service credit per year, for each month of the 
 31.17  temporary layoff; or 
 31.18     (ii) members who earned less than nine months of allowable 
 31.19  service credit in the year of compensated employment with the 
 31.20  governmental subdivision authorizing the layoff that immediately 
 31.21  preceded the layoff shall receive allowable service credit on a 
 31.22  fractional basis for each month of the authorized layoff, 
 31.23  limited to three months of allowable service credit, determined 
 31.24  by dividing the total number of months of service credit earned 
 31.25  for the compensated employment by nine and multiplying the 
 31.26  resulting number by the total number of months in the layoff 
 31.27  period that are not compensated; or 
 31.28     (7) a period during which a member is on an authorized 
 31.29  leave of absence to enter military service in the armed forces 
 31.30  of the United States, provided that the member returns to public 
 31.31  service upon discharge from military service under section 
 31.32  192.262 and pays into the fund employee contributions based upon 
 31.33  the employee's salary at the date of return from military 
 31.34  service.  Payment must be made within three times the length of 
 31.35  the military leave period, or five years of the date of 
 31.36  discharge from the military service, whichever is less.  The 
 32.1   amount of these contributions must be in accord with the 
 32.2   contribution rates and salary limitations, if any, in effect 
 32.3   during the leave, plus interest at an annual rate of 8.5 percent 
 32.4   compounded annually from the date of return to public service to 
 32.5   the date payment is made.  The matching employer contribution 
 32.6   and additional employer contribution under section 353.27, 
 32.7   subdivisions 3 and 3a, must be paid by the governmental 
 32.8   subdivision employing the member upon return to public service 
 32.9   if the member makes the employee contributions.  The 
 32.10  governmental subdivision involved may appropriate money for 
 32.11  those payments.  A member may not receive credit for a voluntary 
 32.12  extension of military service at the instance of the member 
 32.13  beyond the initial period of enlistment, induction, or call to 
 32.14  active duty.  Upon payment, the employee must be granted 
 32.15  allowable service credit for full calendar months or fractions 
 32.16  of a month during the leave period as described in paragraph 
 32.17  (d), clauses (1) and (2), based on the salary or compensated 
 32.18  hours used in computing the payment amount.; or 
 32.19     (8) a period of time during which a member who is a state 
 32.20  employee was on strike without pay, not to exceed a period of 
 32.21  one year, if the member makes a payment in lieu of salary 
 32.22  deductions or makes a prior service credit purchase payment, 
 32.23  whichever applies.  If the payment is made within 12 months, the 
 32.24  payment by the member must be an amount equal to the employee, 
 32.25  employer, and employer additional contribution rates set forth 
 32.26  in section 353.27, subdivisions 2, 3, and 3a, applied to the 
 32.27  employee's rate of salary in effect on the conclusion of the 
 32.28  strike for the period of the strike without pay, plus compound 
 32.29  interest at a monthly rate of 0.71 percent from the last day of 
 32.30  the strike until the date of payment.  If the payment is not 
 32.31  made within 12 months, the payment must be in an amount equal to 
 32.32  the payment amount determined under section 356.55 or 356.551, 
 32.33  whichever applies. 
 32.34     (b) For calculating benefits under sections 353.30, 353.31, 
 32.35  353.32, and 353.33 for state officers and employees displaced by 
 32.36  the Community Corrections Act, chapter 401, and transferred into 
 33.1   county service under section 401.04, "allowable service" means 
 33.2   combined years of allowable service as defined in paragraph (a), 
 33.3   clauses (1) to (6), and section 352.01, subdivision 11.  
 33.4      (c) For a public employee who has prior service covered by 
 33.5   a local police or firefighters relief association that has 
 33.6   consolidated with the public employees retirement association or 
 33.7   to which section 353.665 applies, and who has elected the type 
 33.8   of benefit coverage provided by the public employees police and 
 33.9   fire fund either under section 353A.08 following the 
 33.10  consolidation or under section 353.665, subdivision 4, 
 33.11  "applicable service" is a period of service credited by the 
 33.12  local police or firefighters relief association as of the 
 33.13  effective date of the consolidation based on law and on bylaw 
 33.14  provisions governing the relief association on the date of the 
 33.15  initiation of the consolidation procedure. 
 33.16     (d) For persons who, after January 1, 2002, either first 
 33.17  become members or terminated membership under subdivision 11b, 
 33.18  and again become members, of the public employees retirement 
 33.19  plan, the public employees police and fire plan under this 
 33.20  chapter, or the local government correctional employee 
 33.21  retirement plan under chapter 353E, whichever applies, 
 33.22  "allowable service" means credit for compensated hours from 
 33.23  which deductions are made, or for which payments are made in 
 33.24  lieu of salary deductions as provided under this subdivision, 
 33.25  and which are deposited and credited in the fund as provided in 
 33.26  section 353.27, determined as follows: 
 33.27     (1) one month of allowable service credit for each month 
 33.28  during which the employee has received salary for 80 or more 
 33.29  compensated hours; or 
 33.30     (2) a fraction of one month of allowable service for each 
 33.31  month for which the employee has received salary for less than 
 33.32  80 compensated hours equal to the percentage relationship that 
 33.33  the number of compensated hours bear to 80 hours. 
 33.34     (e) Elected officials and other public employees who are 
 33.35  compensated solely on an annual basis shall be granted a full 
 33.36  year of credit for each year for which compensation is earned. 
 34.1      (f) Allowable service that is determined and credited on a 
 34.2   fractional basis must be used only in calculating the amount of 
 34.3   benefits payable.  In determining the length of service required 
 34.4   for vesting, a member shall be granted a month of service credit 
 34.5   for each month in which the member received compensation from 
 34.6   which employee contributions were deducted.  For periods of 
 34.7   part-time service that are duplicated service credit, section 
 34.8   356.30, subdivision 1, paragraphs (g) and (h), govern. 
 34.9      (g) No member shall receive more than 12 months of 
 34.10  allowable service credit in a year either for vesting purposes 
 34.11  or for benefit calculation purposes. 
 34.12     (h) "Allowable service" also means a period purchased under 
 34.13  section 356.555. 
 34.14     Sec. 3.  Minnesota Statutes 2001 Supplement, section 
 34.15  354.05, subdivision 13, is amended to read: 
 34.16     Subd. 13.  [ALLOWABLE SERVICE.] "Allowable service" means: 
 34.17     (1) Any service rendered by a teacher for which on or 
 34.18  before July 1, 1957, the teacher's account in the retirement 
 34.19  fund was credited by reason of employee contributions in the 
 34.20  form of salary deductions, payments in lieu of salary 
 34.21  deductions, or in any other manner authorized by Minnesota 
 34.22  Statutes 1953, sections 135.01 to 135.13, as amended by Laws 
 34.23  1955, chapters 361, 549, 550, 611, or 
 34.24     (2) Any service rendered by a teacher for which on or 
 34.25  before July 1, 1961, the teacher elected to obtain credit for 
 34.26  service by making payments to the fund pursuant to Minnesota 
 34.27  Statutes 1980, section 354.09 and section 354.51, or 
 34.28     (3) Any service rendered by a teacher after July 1, 1957, 
 34.29  for any calendar month when the member receives salary from 
 34.30  which deductions are made, deposited and credited in the fund, 
 34.31  or 
 34.32     (4) Any service rendered by a person after July 1, 1957, 
 34.33  for any calendar month where payments in lieu of salary 
 34.34  deductions are made, deposited and credited into the fund as 
 34.35  provided in Minnesota Statutes 1980, section 354.09, subdivision 
 34.36  4, and section 354.53, or 
 35.1      (5) Any service rendered by a teacher for which the teacher 
 35.2   elected to obtain credit for service by making payments to the 
 35.3   fund pursuant to Minnesota Statutes 1980, section 354.09, 
 35.4   subdivisions 1 and 4, sections 354.50, 354.51, Minnesota 
 35.5   Statutes 1957, section 135.41, subdivision 4, Minnesota Statutes 
 35.6   1971, section 354.09, subdivision 2, or Minnesota Statutes, 1973 
 35.7   Supplement, section 354.09, subdivision 3, or 
 35.8      (6) Both service during years of actual membership in the 
 35.9   course of which contributions were currently made and service in 
 35.10  years during which the teacher was not a member but for which 
 35.11  the teacher later elected to obtain credit by making payments to 
 35.12  the fund as permitted by any law then in effect, or 
 35.13     (7) Any service rendered where contributions were made and 
 35.14  no allowable service credit was established because of the 
 35.15  limitations contained in Minnesota Statutes 1957, section 
 35.16  135.09, subdivision 2, as determined by the ratio between the 
 35.17  amounts of money credited to the teacher's account in a fiscal 
 35.18  year and the maximum retirement contribution allowable for that 
 35.19  year, or 
 35.20     (8) A period purchased under section 356.555., or 
 35.21     (9) A period of time during which a teacher who is a state 
 35.22  employee was on strike without pay, not to exceed a period of 
 35.23  one year, if the teacher makes a payment in lieu of salary 
 35.24  deductions or makes a prior service credit purchase payment, 
 35.25  whichever applies.  If the payment is made within 12 months, the 
 35.26  payment by the teacher must be an amount equal to the employee 
 35.27  and employer contribution rates set forth in section 354.42, 
 35.28  subdivisions 2 and 3, applied to the teacher's rate of salary in 
 35.29  effect on the conclusion of the strike for the period of the 
 35.30  strike without pay, plus compound interest at a monthly rate of 
 35.31  0.71 percent from the last day of the strike until the date of 
 35.32  payment.  If the payment is not made within 12 months, the 
 35.33  payment must be in an amount equal to the payment amount 
 35.34  determined under section 356.55 or 356.551, whichever applies. 
 35.35     Sec. 4.  [EFFECTIVE DATE.] 
 35.36     (a) Sections 1, 2, and 3 are effective retroactive to July 
 36.1   1, 2001. 
 36.2      (b) The authority to obtain credit for allowable service 
 36.3   under section 1, clause (11); section 2, paragraph (a), clause 
 36.4   (8); and section 3, clause (9), expires 12 months after the date 
 36.5   of enactment. 
 36.6                              ARTICLE 3
 36.7                     PERA MEMBERSHIP ELIGIBILITY
 36.8                     AND SERVICE CREDIT PRORATION 
 36.9      Section 1.  Minnesota Statutes 2001 Supplement, section 
 36.10  353.01, subdivision 2a, is amended to read: 
 36.11     Subd. 2a.  [INCLUDED EMPLOYEES.] (a) Public employees whose 
 36.12  salary from one governmental subdivision exceeds $425 in any 
 36.13  month shall participate as members of the association.  If the 
 36.14  salary is less than $425 in a subsequent month, the employee 
 36.15  retains membership eligibility.  Eligible public employees shall 
 36.16  participate as members of the association with retirement 
 36.17  coverage by the public employees retirement plan or the public 
 36.18  employees police and fire retirement plan under this chapter, or 
 36.19  the local government correctional employees retirement plan 
 36.20  under chapter 353E, whichever applies, as a condition of their 
 36.21  employment on the first day of employment unless they: 
 36.22     (1) are specifically excluded under subdivision 2b; 
 36.23     (2) do not exercise their option to elect retirement 
 36.24  coverage in the association as provided in subdivision 2d, 
 36.25  paragraph (a); or 
 36.26     (3) are employees of the governmental subdivisions listed 
 36.27  in subdivision 2d, paragraph (b), where the governmental 
 36.28  subdivision has not elected to participate as a governmental 
 36.29  subdivision covered by the association. 
 36.30     (b) A public employee who was a member of the association 
 36.31  on June 30, 2002, based on employment that qualified for 
 36.32  membership coverage by the public employees retirement plan or 
 36.33  the public employees police and fire plan under this chapter, or 
 36.34  the local government correctional employees retirement plan 
 36.35  under chapter 353E as of June 30, 2002, retains that membership 
 36.36  until the employee terminates public employment under 
 37.1   subdivision 11a or terminates membership under subdivision 11b. 
 37.2      Sec. 2.  Minnesota Statutes 2001 Supplement, section 
 37.3   353.01, subdivision 2b, is amended to read: 
 37.4      Subd. 2b.  [EXCLUDED EMPLOYEES.] The following public 
 37.5   employees are not eligible to participate as members of the 
 37.6   association with retirement coverage by the public employees 
 37.7   retirement plan, the local government correctional employees 
 37.8   retirement plan under chapter 353E, or the public employees 
 37.9   police and fire retirement plan: 
 37.10     (1) public officers, other than county sheriffs, who are 
 37.11  elected to a governing body, or persons who are appointed to 
 37.12  fill a vacancy in an elective office of a governing body, whose 
 37.13  term of office first commences on or after July 1, 2002, for the 
 37.14  service to be rendered in that elective position.  Elected 
 37.15  governing body officials who were active members of the 
 37.16  association's coordinated or basic retirement plans as of June 
 37.17  30, 2002, continue participation throughout incumbency in office 
 37.18  until termination of public service occurs as defined in 
 37.19  subdivision 11a; 
 37.20     (2) election officers or election judges; 
 37.21     (3) patient and inmate personnel who perform services for a 
 37.22  governmental subdivision; 
 37.23     (4) employees who are hired for a temporary position under 
 37.24  subdivision 12a, and employees who resign from a nontemporary 
 37.25  position and accept a temporary position within 30 days in the 
 37.26  same governmental subdivision.  An employer must not apply the 
 37.27  definition of temporary position so as to exclude employees who 
 37.28  are hired to fill positions that are permanent or that are for 
 37.29  an unspecified period but who are serving a probationary period 
 37.30  at the start of the employment.  If the period of employment 
 37.31  extends beyond six consecutive months and the employee earns 
 37.32  more than $425 from one governmental subdivision in any calendar 
 37.33  month, the department head shall report the employee for 
 37.34  membership and require employee deductions be made on behalf of 
 37.35  the employee under section 353.27, subdivision 4. 
 37.36     The membership eligibility of an employee who resigns or is 
 38.1   dismissed from a temporary position and within 30 days accepts 
 38.2   another temporary position in the same governmental subdivision 
 38.3   is determined on the total length of employment rather than on 
 38.4   each separate position.  Membership eligibility of an employee 
 38.5   who holds concurrent temporary and nontemporary positions in one 
 38.6   governmental subdivision is determined by the length of 
 38.7   employment and salary of each separate position; 
 38.8      (5) employees who are employed by reason of work emergency 
 38.9   caused by fire, flood, storm, or similar disaster; 
 38.10     (6) employees who by virtue of their employment in one 
 38.11  governmental subdivision are required by law to be a member of 
 38.12  and to contribute to any of the plans or funds administered by 
 38.13  the Minnesota state retirement system, the teachers retirement 
 38.14  association, the Duluth teachers retirement fund association, 
 38.15  the Minneapolis teachers retirement association, the St. Paul 
 38.16  teachers retirement fund association, the Minneapolis employees 
 38.17  retirement fund, or any police or firefighters relief 
 38.18  association governed by section 69.77 that has not consolidated 
 38.19  with the public employees retirement association, or any local 
 38.20  police or firefighters consolidation account but who have not 
 38.21  elected the type of benefit coverage provided by the public 
 38.22  employees police and fire fund under sections 353A.01 to 
 38.23  353A.10, or any persons covered by section 353.665, subdivision 
 38.24  4, 5, or 6, who have not elected public employees police and 
 38.25  fire plan benefit coverage.  This clause must not be construed 
 38.26  to prevent a person from being a member of and contributing to 
 38.27  the public employees retirement association and also belonging 
 38.28  to and contributing to another public pension fund for other 
 38.29  service occurring during the same period of time.  A person who 
 38.30  meets the definition of "public employee" in subdivision 2 by 
 38.31  virtue of other service occurring during the same period of time 
 38.32  becomes a member of the association unless contributions are 
 38.33  made to another public retirement fund on the salary based on 
 38.34  the other service or to the teachers retirement association by a 
 38.35  teacher as defined in section 354.05, subdivision 2; 
 38.36     (7) persons who are members of a religious order and are 
 39.1   excluded from coverage under the federal Old Age, Survivors, 
 39.2   Disability, and Health Insurance Program for the performance of 
 39.3   service as specified in United States Code, title 42, section 
 39.4   410(a)(8)(A), as amended through January 1, 1987, if no 
 39.5   irrevocable election of coverage has been made under section 
 39.6   3121(r) of the Internal Revenue Code of 1954, as amended; 
 39.7      (8) employees who at the time they are hired by a of a 
 39.8   governmental subdivision who have not reached the age of 23 and 
 39.9   are enrolled on a full-time basis to attend or are attending 
 39.10  classes on a full-time basis at an accredited school, college, 
 39.11  or university in an undergraduate, graduate, or 
 39.12  professional-technical program, or a public or charter high 
 39.13  school, if the employment is predicated on the student status of 
 39.14  the individual; 
 39.15     (9) resident physicians, medical interns, and pharmacist 
 39.16  residents and pharmacist interns who are serving in a degree or 
 39.17  residency program in public hospitals; 
 39.18     (10) students who are serving in an internship or residency 
 39.19  program sponsored by an accredited educational institution; 
 39.20     (11) persons who hold a part-time adult supplementary 
 39.21  technical college license who render part-time teaching service 
 39.22  in a technical college; 
 39.23     (12) except for employees of Hennepin county, foreign 
 39.24  citizens working for a governmental subdivision with a work 
 39.25  permit of less than three years, or an H-1b visa valid for less 
 39.26  than three years of employment.  Upon notice to the association 
 39.27  that the work permit or visa extends beyond the three-year 
 39.28  period, the foreign citizens are eligible to be reported for 
 39.29  membership from the date of the extension; 
 39.30     (13) public hospital employees who elected not to 
 39.31  participate as members of the association before 1972 and who 
 39.32  did not elect to participate from July 1, 1988, to October 1, 
 39.33  1988; 
 39.34     (14) except as provided in section 353.86, volunteer 
 39.35  ambulance service personnel, as defined in subdivision 35, but 
 39.36  persons who serve as volunteer ambulance service personnel may 
 40.1   still qualify as public employees under subdivision 2 and may be 
 40.2   members of the public employees retirement association and 
 40.3   participants in the public employees retirement fund or the 
 40.4   public employees police and fire fund, whichever applies, on the 
 40.5   basis of compensation received from public employment service 
 40.6   other than service as volunteer ambulance service personnel; 
 40.7      (15) except as provided in section 353.87, volunteer 
 40.8   firefighters, as defined in subdivision 36, engaging in 
 40.9   activities undertaken as part of volunteer firefighter duties; 
 40.10  provided that a person who is a volunteer firefighter may still 
 40.11  qualify as a public employee under subdivision 2 and may be a 
 40.12  member of the public employees retirement association and a 
 40.13  participant in the public employees retirement fund or the 
 40.14  public employees police and fire fund, whichever applies, on the 
 40.15  basis of compensation received from public employment activities 
 40.16  other than those as a volunteer firefighter; 
 40.17     (16) pipefitters and associated trades personnel employed 
 40.18  by independent school district No. 625, St. Paul, with coverage 
 40.19  under a collective bargaining agreement by the pipefitters local 
 40.20  455 pension plan who were either first employed after May 1, 
 40.21  1997, or, if first employed before May 2, 1997, elected to be 
 40.22  excluded under Laws 1997, chapter 241, article 2, section 12; 
 40.23     (17) electrical workers, plumbers, carpenters, and 
 40.24  associated trades personnel employed by independent school 
 40.25  district No. 625, St. Paul, or the city of St. Paul, who have 
 40.26  retirement coverage under a collective bargaining agreement by 
 40.27  the electrical workers local 110 pension plan, the united 
 40.28  association plumbers local 34 pension plan, or the carpenters 
 40.29  local 87 pension plan who were either first employed after May 
 40.30  1, 2000, or, if first employed before May 2, 2000, elected to be 
 40.31  excluded under Laws 2000, chapter 461, article 7, section 5; 
 40.32     (18) bricklayers, allied craftworkers, cement masons, 
 40.33  glaziers, glassworkers, painters, allied tradesworkers, and 
 40.34  plasterers employed by the city of St. Paul or independent 
 40.35  school district No. 625, St. Paul, with coverage under a 
 40.36  collective bargaining agreement by the bricklayers and allied 
 41.1   craftworkers local 1 pension plan, the cement masons local 633 
 41.2   pension plan, the glaziers and glassworkers local L-1324 pension 
 41.3   plan, the painters and allied trades local 61 pension plan, or 
 41.4   the Twin Cities plasterers local 265 pension plan who were 
 41.5   either first employed after May 1, 2001, or if first employed 
 41.6   before May 2, 2001, elected to be excluded under Laws 2001, 
 41.7   First Special Session chapter 10, article 10, section 6; 
 41.8      (19) plumbers employed by the metropolitan airports 
 41.9   commission, with coverage under a collective bargaining 
 41.10  agreement by the plumbers local 34 pension plan, who either were 
 41.11  first employed after May 1, 2001, or if first employed before 
 41.12  May 2, 2001, elected to be excluded under Laws 2001, First 
 41.13  Special Session chapter 10, article 10, section 6; 
 41.14     (20) employees who are hired after June 30, 2002, to fill 
 41.15  seasonal positions under subdivision 12b which are limited in 
 41.16  duration by the employer to 185 consecutive calendar days or 
 41.17  less in each business year of employment with the governmental 
 41.18  subdivision; 
 41.19     (21) persons who are provided supported employment or 
 41.20  work-study positions by a governmental subdivision and who 
 41.21  participate in an employment or industries program maintained 
 41.22  for the benefit of these persons where the governmental 
 41.23  subdivision limits the position's duration to three years or 
 41.24  less, including persons participating in a federal or state 
 41.25  subsidized on-the-job training, work experience, senior citizen, 
 41.26  youth, or unemployment relief program where the training or work 
 41.27  experience is not provided as a part of, or for, future 
 41.28  permanent public employment; 
 41.29     (22) independent contractors and the employees of 
 41.30  independent contractors; and 
 41.31     (23) reemployed annuitants of the association during the 
 41.32  course of that reemployment. 
 41.33     Sec. 3.  Minnesota Statutes 2001 Supplement, section 
 41.34  353.01, subdivision 11b, is amended to read: 
 41.35     Subd. 11b.  [TERMINATION OF MEMBERSHIP.] (a) "Termination 
 41.36  of membership" means the conclusion of membership in the 
 42.1   association and occurs: 
 42.2      (1) upon termination of public service under subdivision 
 42.3   11a; 
 42.4      (2) when a member does not return to work within 30 days of 
 42.5   the expiration of an authorized temporary layoff under 
 42.6   subdivision 12 or an authorized leave of absence under 
 42.7   subdivision 31 as evidenced by the appropriate record filed by 
 42.8   the governmental subdivision; or 
 42.9      (3) when a person files a written election to discontinue 
 42.10  employee deductions under section 353.27, subdivision 7, 
 42.11  paragraph (a), clause (1). 
 42.12     (b) The termination of membership must be reported to the 
 42.13  association by the governmental subdivision. 
 42.14     (c) If the employee subsequently returns to a position in 
 42.15  the same governmental subdivision, the employee shall not again 
 42.16  be required to earn a salary in excess of $425 per month to 
 42.17  qualify for membership, unless the employee has taken a refund 
 42.18  of accumulated employee deduction plus interest under section 
 42.19  353.34, subdivision 1. 
 42.20     Sec. 4.  Minnesota Statutes 2001 Supplement, section 
 42.21  353.01, subdivision 16, is amended to read: 
 42.22     Subd. 16.  [ALLOWABLE SERVICE; LIMITS AND COMPUTATION.] (a) 
 42.23  "Allowable service" means: 
 42.24     (1) service during years of actual membership in the course 
 42.25  of which employee contributions were made, periods covered by 
 42.26  payments in lieu of salary deductions under section 353.35; 
 42.27     (2) service in years during which the public employee was 
 42.28  not a member but for which the member later elected, while a 
 42.29  member, to obtain credit by making payments to the fund as 
 42.30  permitted by any law then in effect; 
 42.31     (3) a period of authorized leave of absence with pay from 
 42.32  which deductions for employee contributions are made, deposited, 
 42.33  and credited to the fund; 
 42.34     (4) a period of authorized personal, parental, or medical 
 42.35  leave of absence without pay, including a leave of absence 
 42.36  covered under the federal Family Medical Leave Act, that does 
 43.1   not exceed one year, and during or for which a member obtained 
 43.2   full or fractional service credit for each month in the leave 
 43.3   period by payments to the fund made in place of salary 
 43.4   deductions.  The payments must be made in an amount or amounts 
 43.5   based on the member's average salary on which deductions were 
 43.6   paid for the last six months of public service, or for that 
 43.7   portion of the last six months while the member was in public 
 43.8   service, to apply to the period in either case that immediately 
 43.9   precedes the commencement of the leave of absence.  If the 
 43.10  employee elects to pay the employee contributions for the period 
 43.11  of any authorized personal, parental, or medical leave of 
 43.12  absence without pay, or for any portion of the leave, the 
 43.13  employee shall also, as a condition to the exercise of the 
 43.14  election, pay to the fund an amount equivalent to the required 
 43.15  employer and the additional employer contributions, if any, for 
 43.16  the employee.  The payment must be made within one year from the 
 43.17  expiration of the leave of absence or within 20 days after 
 43.18  termination of public service under subdivision 11a, whichever 
 43.19  is earlier.  The employer, if by appropriate action of its 
 43.20  governing body, which is made a part of its official records, 
 43.21  and which is adopted before the date of the first payment of the 
 43.22  employee contribution, may certify to the association in writing 
 43.23  its commitment to pay the employer and additional employer 
 43.24  contributions from the proceeds of a tax levy made under section 
 43.25  353.28.  Payments under this paragraph must include interest at 
 43.26  an annual rate of 8.5 percent compounded annually from the date 
 43.27  of the termination of the leave of absence to the date payment 
 43.28  is made.  An employee shall return to public service and render 
 43.29  a minimum of three months of allowable service in order to be 
 43.30  eligible to pay employee and employer contributions for a 
 43.31  subsequent authorized leave of absence without pay.  Upon 
 43.32  payment, the employee must be granted allowable service credit 
 43.33  for full calendar months or fractions of a month during the 
 43.34  leave purchased period as described in paragraph (d), clauses (1)
 43.35  and (2), based on the salary or the compensated hours used in 
 43.36  computing the payment amount; 
 44.1      (5) a periodic, repetitive leave that is offered to all 
 44.2   employees of a governmental subdivision.  The leave program may 
 44.3   not exceed 208 hours per annual normal work cycle as certified 
 44.4   to the association by the employer.  A participating member 
 44.5   obtains service credit by making employee contributions in an 
 44.6   amount or amounts based on the member's average salary that 
 44.7   would have been paid if the leave had not been taken.  The 
 44.8   employer shall pay the employer and additional employer 
 44.9   contributions on behalf of the participating member.  The 
 44.10  employee and the employer are responsible to pay interest on 
 44.11  their respective shares at the rate of 8.5 percent a year, 
 44.12  compounded annually, from the end of the normal cycle until full 
 44.13  payment is made.  An employer shall also make the employer and 
 44.14  additional employer contributions, plus 8.5 percent interest, 
 44.15  compounded annually, on behalf of an employee who makes employee 
 44.16  contributions but terminates public service.  The employee 
 44.17  contributions must be made within one year after the end of the 
 44.18  annual normal working cycle or within 20 days after termination 
 44.19  of public service, whichever is sooner.  The association shall 
 44.20  prescribe the manner and forms to be used by a governmental 
 44.21  subdivision in administering a periodic, repetitive leave.  Upon 
 44.22  payment, the member must be granted allowable service credit for 
 44.23  full calendar months or fractions of a month during the leave 
 44.24  purchased period as described in paragraph (d), clauses (1) and 
 44.25  (2), based on the salary or the compensated hours used in 
 44.26  computing the payment amount; 
 44.27     (6) an authorized temporary layoff under subdivision 12.  
 44.28  For temporary layoffs that begin before January 1, 2002, 
 44.29  allowable service credit is, limited to three months allowable 
 44.30  service per authorized temporary layoff in one calendar year.  
 44.31  For temporary layoffs that begin on or after January 1, 2002, 
 44.32  allowable service credit for the calendar month in which the 
 44.33  member does not receive salary due to the layoff must be 
 44.34  determined using the following formula: 
 44.35     (i) members who earned one month of allowable service 
 44.36  credit for each of the nine calendar months of compensated 
 45.1   employment with the governmental subdivision authorizing the 
 45.2   layoff that immediately preceded the layoff shall receive one 
 45.3   month of allowable service credit, limited to three months of 
 45.4   allowable service credit per year, for each month of the 
 45.5   temporary layoff; or 
 45.6      (ii) members who earned less than nine months of allowable 
 45.7   service credit in the year of compensated employment with the 
 45.8   governmental subdivision authorizing the layoff that immediately 
 45.9   preceded the layoff shall receive allowable service credit on a 
 45.10  fractional basis for each month of the authorized layoff, 
 45.11  limited to three months of allowable service credit, determined 
 45.12  by dividing the total number of months of service credit earned 
 45.13  for the compensated employment by nine and multiplying the 
 45.14  resulting number by the total number of months in the layoff 
 45.15  period that are not compensated An employee who has received the 
 45.16  maximum service credit allowed for an authorized temporary 
 45.17  layoff must return to public service and must receive a minimum 
 45.18  of three months of allowable service subsequent to the layoff in 
 45.19  order to receive allowable service for a subsequent authorized 
 45.20  temporary layoff; or 
 45.21     (7) a period during which a member is on an authorized 
 45.22  leave of absence to enter military service in the armed forces 
 45.23  of the United States, provided that if the member returns to 
 45.24  public service upon discharge from military service under 
 45.25  section 192.262 and pays into the fund employee contributions 
 45.26  based upon the employee's salary at the date of return from 
 45.27  military service.  Payment must be made within a period that is 
 45.28  three times the length of the military leave period, or within 
 45.29  five years of the date of discharge from the military service, 
 45.30  whichever is less.  Payment cannot be accepted following 20 days 
 45.31  after termination of public service under subdivision 11a.  The 
 45.32  amount of these contributions must be in accord with the 
 45.33  contribution rates and salary limitations, if any, in effect 
 45.34  during the leave, plus interest at an annual rate of 8.5 percent 
 45.35  compounded annually from the date of return to public service to 
 45.36  the date payment is made.  The matching corresponding employer 
 46.1   contribution, and additional employer contribution under section 
 46.2   353.27, subdivisions 3 and 3a, if applicable, must be paid by 
 46.3   the governmental subdivision employing the member upon the 
 46.4   person's return to public service if the member makes the 
 46.5   employee contributions.  The governmental subdivision involved 
 46.6   may appropriate money for those payments.  A member may not 
 46.7   receive credit for a voluntary extension of military service at 
 46.8   the instance of the member beyond the initial period of 
 46.9   enlistment, induction, or call to active duty.  Upon payment, 
 46.10  the employee must be granted allowable service credit for full 
 46.11  calendar months or fractions of a month during the leave 
 46.12  purchased period as described in paragraph (d), clauses (1) and 
 46.13  (2), based on the salary or compensated hours used in computing 
 46.14  the payment amount. 
 46.15     (b) For calculating benefits under sections 353.30, 353.31, 
 46.16  353.32, and 353.33 for state officers and employees displaced by 
 46.17  the Community Corrections Act, chapter 401, and transferred into 
 46.18  county service under section 401.04, "allowable service" 
 46.19  means the combined years of allowable service as defined in 
 46.20  paragraph (a), clauses (1) to (6), and section 352.01, 
 46.21  subdivision 11.  
 46.22     (c) For a public employee who has prior service covered by 
 46.23  a local police or firefighters relief association that has 
 46.24  consolidated with the public employees retirement association or 
 46.25  to which section 353.665 applies, and who has elected the type 
 46.26  of benefit coverage provided by the public employees police and 
 46.27  fire fund either under section 353A.08 following the 
 46.28  consolidation or under section 353.665, subdivision 4, 
 46.29  "applicable service" is a period of service credited by the 
 46.30  local police or firefighters relief association as of the 
 46.31  effective date of the consolidation based on law and on bylaw 
 46.32  provisions governing the relief association on the date of the 
 46.33  initiation of the consolidation procedure. 
 46.34     (d) For persons who, after January 1, 2002, either first 
 46.35  become members or terminated membership under subdivision 11b, 
 46.36  and again become members, of the public employees retirement 
 47.1   plan, the public employees police and fire plan under this 
 47.2   chapter, or the local government correctional employee 
 47.3   retirement plan under chapter 353E, whichever applies, 
 47.4   "allowable service" means credit for compensated hours from 
 47.5   which deductions are made, or for which payments are made in 
 47.6   lieu of salary deductions as provided under this subdivision, 
 47.7   and which are deposited and credited in the fund as provided in 
 47.8   section 353.27, determined as follows: 
 47.9      (1) one month of allowable service credit for each month 
 47.10  during which the employee has received salary for 80 or more 
 47.11  compensated hours; or 
 47.12     (2) a fraction of one month of allowable service for each 
 47.13  month for which the employee has received salary for less than 
 47.14  80 compensated hours equal to the percentage relationship that 
 47.15  the number of compensated hours bear to 80 hours. 
 47.16     (e) Elected officials and other public employees who are 
 47.17  compensated solely on an annual basis shall be granted a full 
 47.18  year of credit for each year for which compensation is earned. 
 47.19     (f) Allowable service that is determined and credited on a 
 47.20  fractional basis must be used only in calculating the amount of 
 47.21  benefits payable.  In determining the length of service required 
 47.22  for vesting, a member shall be granted a month of service credit 
 47.23  for each month in which the member received compensation from 
 47.24  which employee contributions were deducted.  For periods of 
 47.25  part-time service that are duplicated service credit, section 
 47.26  356.30, subdivision 1, paragraphs (g) and (h), govern. 
 47.27     (g) No member shall receive more than 12 months of 
 47.28  allowable service credit in a year either for vesting purposes 
 47.29  or for benefit calculation purposes. 
 47.30     (h) (e) "Allowable service" also means a period purchased 
 47.31  under section 356.555. 
 47.32     Sec. 5.  Minnesota Statutes 2000, section 353.01, is 
 47.33  amended by adding a subdivision to read:  
 47.34     Subd. 40.  [REDUCED SALARY DURING PERIOD OF WORKERS' 
 47.35  COMPENSATION.] (a) A member who is receiving temporary workers' 
 47.36  compensation payments related to the member's service to the 
 48.1   public employer and who either is receiving a reduced salary 
 48.2   from the employer during that period or is receiving no salary 
 48.3   from the employer during that period is entitled to receive 
 48.4   allowable service and salary credit for the period of time that 
 48.5   the member is receiving the workers' compensation payments upon 
 48.6   making the payments specified in this subdivision. 
 48.7      (b) The differential salary amount is the difference 
 48.8   between the average rate of salary received by the member, if 
 48.9   any, during the period of time that the member is collecting 
 48.10  temporary workers' compensation payments and the average rate of 
 48.11  salary of the member on which contributions to the applicable 
 48.12  plan were made during the period of the last six months of 
 48.13  covered employment occurring immediately before beginning to 
 48.14  collect the temporary workers' compensation payments, applied to 
 48.15  the member's normal employment period, measured in hours or 
 48.16  otherwise, as applicable. 
 48.17     (c) To receive eligible service credit, the member shall 
 48.18  pay an amount equal to the applicable employee contribution rate 
 48.19  under section 353.27, subdivision 2; 353.65, subdivision 2; or 
 48.20  353E.03, subdivision 1, as applicable, multiplied by the 
 48.21  differential salary amount; plus an employer equivalent payment 
 48.22  equal to the applicable employer contribution rate in section 
 48.23  353.27, subdivision 3; 353.65, subdivision 3; or 353E.03, 
 48.24  subdivision 2, as applicable, multiplied by the differential 
 48.25  salary amount; plus, if applicable, an equivalent employer 
 48.26  additional amount equal to the additional employer contribution 
 48.27  rate in section 353.27, subdivision 3a, multiplied by the 
 48.28  differential salary amount. 
 48.29     (d) The employer may, by appropriate action of its 
 48.30  governing body and documented in its official records, pay the 
 48.31  employer equivalent contributions and, as applicable, the 
 48.32  equivalent employer additional contributions on behalf of the 
 48.33  member. 
 48.34     (e) Payment under this subdivision must include interest on 
 48.35  the contribution amount or amounts, whichever applies at an 8.5 
 48.36  percent annual rate prorated for applicable months from the date 
 49.1   on which the temporary workers' compensation payments terminate 
 49.2   to the date on which the payment or payments are received by the 
 49.3   executive director.  Payment under this subdivision must be 
 49.4   completed within one year after the termination of the temporary 
 49.5   workers' compensation payments to the member, or within 20 days 
 49.6   after termination of public service under subdivision 11a, 
 49.7   whichever is earlier. 
 49.8      Sec. 6.  Minnesota Statutes 2001 Supplement, section 
 49.9   353.27, subdivision 4, is amended to read: 
 49.10     Subd. 4.  [EMPLOYER REPORTING REQUIREMENTS; CONTRIBUTIONS; 
 49.11  MEMBER STATUS.] (a) A representative authorized by the head of 
 49.12  each department shall deduct employee contributions from the 
 49.13  salary of each employee who qualifies for membership under this 
 49.14  chapter and remit payment in a manner prescribed by the 
 49.15  executive director for the aggregate amount of the employee 
 49.16  contributions, the employer contributions and the additional 
 49.17  employer contributions to be received within 14 calendar days.  
 49.18  The head of each department or the person's designee shall for 
 49.19  each pay period submit to the association a salary deduction 
 49.20  report in the format prescribed by the executive director.  Data 
 49.21  required to be submitted as part of salary deduction reporting 
 49.22  must include, but are not limited to:  
 49.23     (1) the legal names and social security numbers of 
 49.24  employees who are members; 
 49.25     (2) the amount of each employee's salary deduction; 
 49.26     (3) the amount of salary from which each deduction was 
 49.27  made; 
 49.28     (4) the beginning and ending dates of the payroll period 
 49.29  covered and the date of actual payment; and 
 49.30     (5) adjustments or corrections covering past pay periods; 
 49.31  and 
 49.32     (6) the number of compensated hours of each employee during 
 49.33  the payroll period.  
 49.34     (b) Employers must furnish the data required for enrollment 
 49.35  for each new employee who qualifies for membership in the format 
 49.36  prescribed by the executive director.  The required enrollment 
 50.1   data on new employees must be submitted to the association prior 
 50.2   to or concurrent with the submission of the initial employee 
 50.3   salary deduction.  The employer shall also report to the 
 50.4   association all member employment status changes, such as leaves 
 50.5   of absence, terminations, and death, and shall report the 
 50.6   effective dates of those changes, on an ongoing basis for the 
 50.7   payroll cycle in which they occur.  The employer shall furnish 
 50.8   data, forms, and reports as may be required by the executive 
 50.9   director for proper administration of the retirement system.  
 50.10  Before implementing new or different computerized reporting 
 50.11  requirements, the executive director shall give appropriate 
 50.12  advance notice to governmental subdivisions to allow time for 
 50.13  system modifications. 
 50.14     (c) Notwithstanding paragraph (a), the association may 
 50.15  provide for less frequent reporting and payments for small 
 50.16  employers. 
 50.17     Sec. 7.  Minnesota Statutes 2001 Supplement, section 
 50.18  353.27, subdivision 11, is amended to read: 
 50.19     Subd. 11.  [EMPLOYERS; REQUIRED TO FURNISH REQUESTED 
 50.20  INFORMATION.] All governmental subdivisions shall furnish 
 50.21  promptly such other information relative to the employment 
 50.22  status of all employees or former employees, including but not 
 50.23  limited to payroll abstracts pertaining to all past and present 
 50.24  employees, as may be requested by the association or its 
 50.25  executive director, including schedules of salaries applicable 
 50.26  to various categories of employment, and the number of actual or 
 50.27  estimated compensated hours for employees.  In the event payroll 
 50.28  abstract records have been lost or destroyed, for whatever 
 50.29  reason or in whatever manner, so that such schedules of salaries 
 50.30  cannot be furnished therefrom, the employing governmental 
 50.31  subdivision, in lieu thereof, shall furnish to the association 
 50.32  an estimate of the earnings of any employee or former employee 
 50.33  for any period as may be requested by the association or its 
 50.34  executive director. Should the association receive such 
 50.35  schedules of estimated earnings, the executive director is 
 50.36  hereby authorized to use the same as a basis for making whatever 
 51.1   computations might be necessary for determining obligations of 
 51.2   the employee and employer to the retirement fund.  If estimates 
 51.3   are not furnished by the employer pursuant to the request of the 
 51.4   association or its executive director, the association may 
 51.5   estimate the obligations of the employee and employer to the 
 51.6   retirement fund based upon such records as are in its 
 51.7   possession.  Where payroll abstracts have been lost or 
 51.8   destroyed, the governmental agency need not furnish any 
 51.9   information pertaining to employment prior to July 1, 1963.  The 
 51.10  association shall make no estimate of any obligation of any 
 51.11  employee, former employee, or employer covering employment prior 
 51.12  to July 1, 1963. 
 51.13     Sec. 8.  Minnesota Statutes 2000, section 353.64, 
 51.14  subdivision 7a, is amended to read: 
 51.15     Subd. 7a.  [PENSION COVERAGE FOR CERTAIN METROPOLITAN 
 51.16  TRANSIT POLICE OFFICERS.] A person who is employed as a 
 51.17  full-time police officer on or after the first day of the first 
 51.18  payroll period after July 1, 1993, by the metropolitan council 
 51.19  and who is not eligible for coverage under the agreement with 
 51.20  the Secretary of the federal Department of Health and Human 
 51.21  Services making the provisions of the federal Old Age, 
 51.22  Survivors, and Disability Insurance Act because the person's 
 51.23  position is excluded from application under United States Code, 
 51.24  sections 418(d)(5)(A) and 418(d)(8)(D), and under section 
 51.25  355.07, is a member of the public employees police and fire fund 
 51.26  and is considered to be a police officer within the meaning of 
 51.27  this section.  The metropolitan council shall deduct the 
 51.28  employee contribution from the salary of each full-time police 
 51.29  officer as required by section 353.65, subdivision 2, shall make 
 51.30  the employer contribution for each full-time police officer as 
 51.31  required by section 353.65, subdivision 3, and shall meet the 
 51.32  employer recording and reporting requirements in section 353.65, 
 51.33  subdivision 4. 
 51.34     Sec. 9.  [REPEALER.] 
 51.35     Minnesota Statutes 2001 Supplement, section 353.01, 
 51.36  subdivision 39, is repealed. 
 52.1      Sec. 10.  [APPLICATION.] 
 52.2      Section 8 applies in the counties of Anoka, Carver, Dakota, 
 52.3   Hennepin, Ramsey, Scott, and Washington. 
 52.4      Sec. 11.  [EFFECTIVE DATE.] 
 52.5      (a) Except as provided in paragraphs (c) and (d), sections 
 52.6   1, 2, and 3 are effective on July 1, 2002. 
 52.7      (b) Sections 4, 6, 7, and 9 are effective retroactively 
 52.8   from January 1, 2002. 
 52.9      (c) The amendment to Minnesota Statutes, section 353.01, 
 52.10  subdivision 2b, clause (12), in section 2, is effective on the 
 52.11  day after the date on which the governing body of Hennepin 
 52.12  county and the chief clerical officer of the county complete in 
 52.13  a timely manner their compliance with Minnesota Statutes, 
 52.14  section 645.021, subdivisions 2 and 3. 
 52.15     (d) The amendments to Minnesota Statutes, section 353.01, 
 52.16  subdivision 2b, clauses (8) and (20), are effective 
 52.17  retroactively from January 1, 2002. 
 52.18     (e) Section 5 is effective on the day following final 
 52.19  enactment. 
 52.20     (f) Section 8 is effective July 1, 2002, and applies to 
 52.21  salaries earned by part-time metropolitan transit police 
 52.22  officers after June 30, 2002. 
 52.23                             ARTICLE 4 
 52.24                 PERA LOCAL GOVERNMENT CORRECTIONAL
 52.25                   RETIREMENT PLAN MODIFICATIONS
 52.26     Section 1.  Minnesota Statutes 2000, section 353E.02, 
 52.27  subdivision 1, is amended to read: 
 52.28     Subdivision 1.  [RETIREMENT COVERAGE.] Local government 
 52.29  correctional service employees are The members of the local 
 52.30  government correctional service retirement plan established by 
 52.31  this chapter are: 
 52.32     (1) local government correctional service employees as 
 52.33  defined in subdivision 2; and 
 52.34     (2) medical center protection officers as defined in 
 52.35  subdivision 2a. 
 52.36     Sec. 2.  Minnesota Statutes 2000, section 353E.02, is 
 53.1   amended by adding a subdivision to read: 
 53.2      Subd. 2a.  [MEDICAL CENTER PROTECTION OFFICER.] (a) A 
 53.3   medical center protection officer, for purposes of subdivision 
 53.4   1, is a person whom the employer certifies: 
 53.5      (1) is employed by the Hennepin county medical center as a 
 53.6   protection officer; 
 53.7      (2) is directly responsible for the direct security of the 
 53.8   medical center; 
 53.9      (3) is expected to respond to any incidents within the 
 53.10  medical center as part of the person's regular employment duties 
 53.11  and is trained to do so; and 
 53.12     (4) is a "public employee" as defined in section 353.01, 
 53.13  but is not a member of the public employees police and fire plan.
 53.14     (b) The certification required under paragraph (a) must be 
 53.15  made in writing on a form prescribed by the executive director 
 53.16  of the public employees retirement association. 
 53.17     Sec. 3.  Minnesota Statutes 2000, section 353E.03, is 
 53.18  amended to read: 
 53.19     353E.03 [CORRECTIONAL SERVICE PLAN CONTRIBUTIONS.] 
 53.20     Subdivision 1.  [MEMBER CONTRIBUTIONS.] A member of the 
 53.21  local government correctional service employee retirement plan 
 53.22  shall make an employee contribution in an amount equal to 6.01 
 53.23  percent of salary. 
 53.24     Subd. 2.  [EMPLOYER CONTRIBUTIONS.] The employer shall 
 53.25  contribute for a member of the local government correctional 
 53.26  service employee retirement plan an amount equal to 9.02 percent 
 53.27  of salary. 
 53.28     Sec. 4.  Laws 2000, chapter 461, article 10, section 3, as 
 53.29  amended by Laws 2001, First Special Session chapter 10, article 
 53.30  3, section 28, is amended to read: 
 53.31     Sec. 3.  [EFFECTIVE DATE.] 
 53.32     Section 1 is effective on the day following final enactment.
 53.33  Section 2 is effective on the first day of the first full pay 
 53.34  period beginning after January 1, 2003. 
 53.35     Sec. 5.  [REPEALER.] 
 53.36     Laws 2000, chapter 461, article 10, section 2, is repealed. 
 54.1      Sec. 6.  [EFFECTIVE DATE.] 
 54.2      (a) Sections 1, 2, and 3 are effective on July 1, 2002. 
 54.3      (b) Section 4 is effective on the day following final 
 54.4   enactment. 
 54.5      (c) Section 5 is effective on August 1, 2002. 
 54.6                              ARTICLE 5
 54.7                         PENSION COVERAGE FOR
 54.8                     PRIVATIZED PUBLIC HOSPITALS
 54.9      Section 1.  Minnesota Statutes 2000, section 353F.02, 
 54.10  subdivision 4, is amended to read: 
 54.11     Subd. 4.  [MEDICAL FACILITY.] "Medical facility" means: 
 54.12     (1) the Glencoe area health center; 
 54.13     (2) the Luverne public hospital; and 
 54.14     (3) the Waconia-Ridgeview medical center.; and 
 54.15     (4) the Kanabec hospital. 
 54.16     Sec. 2.  [EFFECTIVE DATE.] 
 54.17     Section 1 is effective upon the latter of: 
 54.18     (1) the day after the governing body of Kanabec county and 
 54.19  its chief clerical officer timely complete their compliance with 
 54.20  Minnesota Statutes, section 645.021, subdivisions 2 and 3; and 
 54.21     (2) the first day of the month next following certification 
 54.22  by the executive director of the public employees retirement 
 54.23  association that the actuarial accrued liability of the special 
 54.24  benefit coverage proposed for extension to the privatized 
 54.25  Kanabec hospital employees under section 1 does not exceed the 
 54.26  actuarial gain otherwise to be accrued by the public employees 
 54.27  retirement association, as calculated by the consulting actuary 
 54.28  retained by the legislative commission on pensions and 
 54.29  retirement.  The cost of the actuarial calculations must be 
 54.30  borne by the Kanabec hospital. 
 54.31                             ARTICLE 6
 54.32                       CLOSED CHARTER SCHOOL
 54.33                  UNPAID RETIREMENT CONTRIBUTIONS
 54.34     Section 1.  Minnesota Statutes 2001 Supplement, section 
 54.35  354.05, subdivision 2, is amended to read: 
 54.36     Subd. 2.  [TEACHER.] (a) "Teacher" means: 
 55.1      (1) a person who renders service as a teacher, supervisor, 
 55.2   principal, superintendent, librarian, nurse, counselor, social 
 55.3   worker, therapist, or psychologist in the a public schools 
 55.4   school of the state located outside of the corporate limits of 
 55.5   the cities a city of the first class, or in any charter school, 
 55.6   irrespective of the location of the school, or in any 
 55.7   charitable, penal, or correctional institutions of a 
 55.8   governmental subdivision, or who is engaged in educational 
 55.9   administration in connection with the state public school 
 55.10  system, but excluding the University of Minnesota, whether the 
 55.11  position be a public office or an employment, not including 
 55.12  members or officers of any general governing or managing board 
 55.13  or body; 
 55.14     (2) an employee of the teachers retirement association; 
 55.15     (3) a person who renders teaching service on a part-time 
 55.16  basis and who also renders other services for a single employing 
 55.17  unit.  A person whose teaching service comprises at least 50 
 55.18  percent of the combined employment salary is a member of the 
 55.19  association for all services with the single employing unit.  If 
 55.20  the person's teaching service comprises less than 50 percent of 
 55.21  the combined employment salary, the executive director must 
 55.22  determine whether all or none of the combined service is covered 
 55.23  by the association; or 
 55.24     (4) a person who is not covered by the plans established 
 55.25  under chapter 352D, 354A, or 354B and who is employed by the 
 55.26  board of trustees of the Minnesota state colleges and 
 55.27  universities system in an unclassified position as: 
 55.28     (i) a president, vice-president, or dean; 
 55.29     (ii) a manager or a professional in an academic or an 
 55.30  academic support program other than specified in item (i); 
 55.31     (iii) an administrative or a service support faculty 
 55.32  position; or 
 55.33     (iv) a teacher or a research assistant. 
 55.34     (b) Teacher "Teacher" does not mean: 
 55.35     (1) a person who works for a school or institution as an 
 55.36  independent contractor as defined by the Internal Revenue 
 56.1   Service; 
 56.2      (2) a person employed in subsidized on-the-job training, 
 56.3   work experience or public service employment as an enrollee 
 56.4   under the federal Comprehensive Employment and Training Act from 
 56.5   and after March 30, 1978, unless the person has, as of the later 
 56.6   of March 30, 1978, or the date of employment, sufficient service 
 56.7   credit in the retirement association to meet the minimum vesting 
 56.8   requirements for a deferred retirement annuity, or the employer 
 56.9   agrees in writing on forms prescribed by the executive director 
 56.10  to make the required employer contributions, including any 
 56.11  employer additional contributions, on account of that person 
 56.12  from revenue sources other than funds provided under the federal 
 56.13  Comprehensive Training and Employment Act, or the person agrees 
 56.14  in writing on forms prescribed by the executive director to make 
 56.15  the required employer contribution in addition to the required 
 56.16  employee contribution; 
 56.17     (3) a person holding a part-time adult supplementary 
 56.18  technical college license who renders part-time teaching service 
 56.19  or a customized trainer as defined by the Minnesota state 
 56.20  colleges and universities system in a technical college if (i) 
 56.21  the service is incidental to the regular nonteaching occupation 
 56.22  of the person; and (ii) the applicable technical college 
 56.23  stipulates annually in advance that the part-time teaching 
 56.24  service or customized training service will not exceed 300 hours 
 56.25  in a fiscal year and retains the stipulation in its records; and 
 56.26  (iii) the part-time teaching service or customized training 
 56.27  service actually does not exceed 300 hours in a fiscal year; or 
 56.28     (4) a person exempt from licensure under section 122A.30. 
 56.29     Sec. 2.  Minnesota Statutes 2000, section 354A.011, 
 56.30  subdivision 27, is amended to read: 
 56.31     Subd. 27.  [TEACHER.] (a) "Teacher" means any person who 
 56.32  renders service in for a public school district, other than a 
 56.33  charter school, located in the corporate limits of one of the 
 56.34  cities of the first class which was so classified on January 1, 
 56.35  1979, as any of the following: 
 56.36     (a) (1) a full-time employee in a position for which a 
 57.1   valid license from the state department of children, families, 
 57.2   and learning is required; 
 57.3      (b) (2) an employee of the teachers retirement fund 
 57.4   association located in the city of the first class unless the 
 57.5   employee has exercised the option pursuant to Laws 1955, chapter 
 57.6   10, section 1, to retain membership in the Minneapolis employees 
 57.7   retirement fund established pursuant to chapter 422A; 
 57.8      (c) (3) a part-time employee in a position for which a 
 57.9   valid license from the state department of children, families, 
 57.10  and learning is required; or 
 57.11     (d) (4) a part-time employee in a position for which a 
 57.12  valid license from the state department of children, families, 
 57.13  and learning is required who also renders other nonteaching 
 57.14  services for the school district, unless the board of trustees 
 57.15  of the teachers retirement fund association determines that the 
 57.16  combined employment is on the whole so substantially dissimilar 
 57.17  to teaching service that the service shall may not be covered by 
 57.18  the association. 
 57.19     (b) The term shall does not mean any person who renders 
 57.20  service in the school district as any of the following: 
 57.21     (1) an independent contractor or the employee of an 
 57.22  independent contractor; 
 57.23     (2) an employee who is a full-time teacher covered by the 
 57.24  teachers retirement association or by another teachers 
 57.25  retirement fund association established pursuant to this chapter 
 57.26  or chapter 354; 
 57.27     (3) an employee exempt from licensure pursuant to section 
 57.28  122A.30; 
 57.29     (4) an employee who is a teacher in a technical college 
 57.30  located in a city of the first class unless the person elects 
 57.31  coverage by the applicable first class city teacher retirement 
 57.32  fund association under section 354B.21, subdivision 2; or 
 57.33     (5) a teacher employed by a charter school, irrespective of 
 57.34  the location of the school; or 
 57.35     (6) an employee who is a part-time teacher in a technical 
 57.36  college in a city of the first class and who has elected 
 58.1   coverage by the applicable first class city teacher retirement 
 58.2   fund association under section 354B.21, subdivision 2, but (i) 
 58.3   the teaching service is incidental to the regular nonteaching 
 58.4   occupation of the person; (ii) the applicable technical college 
 58.5   stipulates annually in advance that the part-time teaching 
 58.6   service will not exceed 300 hours in a fiscal year; and (iii) 
 58.7   the part-time teaching actually does not exceed 300 hours in the 
 58.8   fiscal year to which the certification applies.  
 58.9      Sec. 3.  [STATE PAYMENT OF CERTAIN UNPAID CHARTER SCHOOL 
 58.10  RETIREMENT CONTRIBUTIONS.] 
 58.11     Subdivision 1.  [UNPAID CONTRIBUTIONS.] (a) The state of 
 58.12  Minnesota shall make any unpaid employee, employer, and employer 
 58.13  additional contributions to the applicable retirement 
 58.14  association for teaching or other service in a designated 
 58.15  charter school which closed before April 1, 2002, without having 
 58.16  paid the required contributions to the retirement association.  
 58.17     (b) By June 1, 2002, the chief administrative officer of 
 58.18  the retirement association shall certify to the commissioner of 
 58.19  children, families, and learning the amount of accrued 
 58.20  contributions, plus applicable interest, which were not paid by 
 58.21  each designated charter school before its closure.  On July 1, 
 58.22  2002, the commissioner of children, families, and learning shall 
 58.23  pay the amounts certified from the state total building lease 
 58.24  aid otherwise payable under Minnesota Statutes, section 124D.11, 
 58.25  subdivision 4a, to the affected retirement associations.  The 
 58.26  forecasted amount of charter school lease aid must not be 
 58.27  adjusted to reflect the amount remitted under this section; 
 58.28  rather, charter school lease aid must be prorated by the amount 
 58.29  remitted.  The commissioner shall remit directly to the 
 58.30  retirement association the amounts certified under this 
 58.31  section.  The applicable retirement association shall credit 
 58.32  employee contribution payments to the applicable member accounts 
 58.33  and shall credit to the applicable members allowable and formula 
 58.34  service and covered salary for the period when the teaching or 
 58.35  other service was actually performed in the charter school.  
 58.36  State payments representing unpaid employee contributions must 
 59.1   be considered accumulated employee or member deductions for 
 59.2   purposes of Minnesota Statutes, section 353.34; 354.49; or 
 59.3   354A.37. 
 59.4      Subd. 2.  [COVERED RETIREMENT ASSOCIATIONS.] This section 
 59.5   applies to the following public retirement associations 
 59.6   providing retirement coverage for employees in charter schools: 
 59.7      (1) the teachers retirement association; 
 59.8      (2) the Minneapolis teachers retirement fund association; 
 59.9      (3) the St. Paul teachers retirement fund association; 
 59.10     (4) the Duluth teachers retirement fund association; and 
 59.11     (5) the public employees retirement association. 
 59.12     Subd. 3.  [DESIGNATED CLOSED CHARTER SCHOOLS.] This section 
 59.13  applies to the Frederick Douglass charter school and any other 
 59.14  charter school that is determined by the commissioner of 
 59.15  children, families, and learning to have closed before April 1, 
 59.16  2002. 
 59.17     Sec. 4.  [CONTINUING RECOVERY AUTHORITY.] 
 59.18     Nothing in section 3 relieves the sponsor of a closed 
 59.19  charter school and the operator of a closed charter school from 
 59.20  any financial responsibility that those parties may have to pay 
 59.21  unpaid employee, employer, or employer additional contributions 
 59.22  to the applicable public retirement plans.  The commissioner of 
 59.23  revenue shall undertake all reasonable efforts to recover these 
 59.24  amounts.  Any recovered amounts must be deposited in the general 
 59.25  fund and are appropriated to the department of children, 
 59.26  families, and learning to offset the payment of unpaid 
 59.27  contributions under section 3.  
 59.28     Sec. 5.  [EFFECTIVE DATE.] 
 59.29     (a) Sections 1 and 2 are effective on July 1, 2002. 
 59.30     (b) Sections 3 and 4 are effective on the day following 
 59.31  final enactment. 
 59.32                             ARTICLE 7
 59.33                TEACHERS RETIREMENT ASSOCIATION AND
 59.34            DULUTH TEACHERS RETIREMENT FUND ASSOCIATION 
 59.35                EXTENSION OF RULE OF 90 BENEFIT TIER 
 59.36     Section 1.  Minnesota Statutes 2000, section 354.05, 
 60.1   subdivision 38, is amended to read: 
 60.2      Subd. 38.  [NORMAL RETIREMENT AGE.] "Normal retirement age" 
 60.4   means age 65 for a person who first became a member of the 
 60.5   association or a member of a pension fund listed in section 
 60.6   356.30, subdivision 3, before July 1, 1989.  For a person who 
 60.7   first becomes a member of the association after June 30, 1989, 
 60.8   normal retirement age means the higher of age 65 or "retirement 
 60.9   age," as defined in United States Code, title 42, section 
 60.10  416(l), as amended, but not to exceed age 66. 
 60.11     Sec. 2.  Minnesota Statutes 2000, section 354.44, 
 60.12  subdivision 6, is amended to read: 
 60.13     Subd. 6.  [COMPUTATION OF FORMULA PROGRAM RETIREMENT 
 60.14  ANNUITY.] (1) (a) The formula retirement annuity must be 
 60.15  computed in accordance with the applicable provisions of the 
 60.16  formulas stated in clause (2) paragraph (c) or (4) (e) on the 
 60.17  basis of each member's average salary for the period of the 
 60.18  member's formula service credit.  
 60.19     (b) For all years of formula service credit, "average 
 60.20  salary," for the purpose of determining the member's retirement 
 60.21  annuity, means the average salary upon which contributions were 
 60.22  made and upon which payments were made to increase the salary 
 60.23  limitation provided in Minnesota Statutes 1971, section 354.511, 
 60.24  for the highest five successive years of formula service credit 
 60.25  provided, however, that such "average salary" shall may not 
 60.26  include any more than the equivalent of 60 monthly salary 
 60.27  payments.  Average salary must be based upon all years of 
 60.28  formula service credit if this service credit is less than five 
 60.29  years. 
 60.30     (2) (c) This clause paragraph, in conjunction with clause 
 60.31  (3) paragraph (d), applies to a person who first became a member 
 60.32  of the association or a member of a pension fund listed in 
 60.33  section 356.30, subdivision 3, before July 1, 1989, 
 60.34  unless clause (4) paragraph (e), in conjunction with clause 
 60.35  (5) paragraph (f), produces a higher annuity amount, in which 
 60.36  case clause (4) paragraph (f) applies.  The average salary as 
 60.37  defined in clause (1) paragraph (b), multiplied by the following 
 61.1   percentages per year of formula service credit shall determine 
 61.2   determines the amount of the annuity to which the member 
 61.3   qualifying therefor is entitled: 
 61.4                          Coordinated Member   Basic Member
 61.5   Each year of service     the percent        the percent
 61.6    during first ten        specified in       specified in
 61.7                            section 356.19,    section 356.19,
 61.8                            subdivision 1,     subdivision 3,
 61.9                            per year           per year
 61.10  Each year of service     the percent        the percent
 61.11   thereafter              specified in       specified in
 61.12                           section 356.19,    section 356.19,
 61.13                           subdivision 2,     subdivision 4,
 61.14                           per year           per year
 61.15     (3)(i) (d)(1) This clause paragraph applies only to a 
 61.16  person who first became a member of the association or a member 
 61.17  of a pension fund listed in section 356.30, subdivision 3, 
 61.18  before July 1, 1989, and whose if the annuity is higher when 
 61.19  calculated under clause (2) paragraph (c), in conjunction with 
 61.20  this clause paragraph than when calculated under clause 
 61.21  (4) paragraph (e), in conjunction with clause (5) paragraph (f). 
 61.22     (ii) (2) Where any member retires prior to before the 
 61.23  normal retirement age under a formula annuity, the member shall 
 61.24  must be paid a retirement annuity in an amount equal to the 
 61.25  normal annuity provided in clause (2) paragraph (c) reduced by 
 61.26  one-quarter of one percent for each month that the member is 
 61.27  under normal retirement age at the time of retirement except 
 61.28  that for any member who has 30 or more years of allowable 
 61.29  service credit, the reduction shall must be applied only for 
 61.30  each month that the member is under age 62. 
 61.31     (iii) (3) Any member whose attained age plus credited 
 61.32  allowable service totals 90 years is entitled, upon application, 
 61.33  to a retirement annuity in an amount equal to the normal annuity 
 61.34  provided in clause (2) paragraph (c), without any reduction by 
 61.35  reason of early retirement. 
 61.36     (4) (e) This clause paragraph applies to a member who has 
 62.1   become at least 55 years old and first became a member of the 
 62.2   association after June 30, 1989, and to any other a member who 
 62.3   has become is at least 55 years old and whose annuity amount 
 62.4   when calculated under this clause paragraph and in conjunction 
 62.5   with clause (5), paragraph (f) is higher than it is when 
 62.6   calculated under clause (2) paragraph (c), in conjunction 
 62.7   with clause (3) paragraph (d).  The average salary, as defined 
 62.8   in clause (1) paragraph (b), multiplied by the percent specified 
 62.9   by section 356.19, subdivision 4, for each year of service for a 
 62.10  basic member and by the percent specified in section 356.19, 
 62.11  subdivision 2, for each year of service for a coordinated member 
 62.12  shall determine determines the amount of the retirement annuity 
 62.13  to which the member is entitled. 
 62.14     (5) (f) This clause applies to a person who has become is 
 62.15  at least 55 years old and first becomes a member of the 
 62.16  association after June 30, 1989, and to any other member who has 
 62.17  become at least 55 years old and whose annuity is higher when 
 62.18  calculated under clause (4) paragraph (e) in conjunction with 
 62.19  this clause than when calculated under clause (2) paragraph (c), 
 62.20  in conjunction with clause (3) paragraph (d).  An employee who 
 62.21  retires under the formula annuity before the normal retirement 
 62.22  age shall must be paid the normal annuity provided in clause (4) 
 62.23  paragraph (e) reduced so that the reduced annuity is the 
 62.24  actuarial equivalent of the annuity that would be payable to the 
 62.25  employee if the employee deferred receipt of the annuity and the 
 62.26  annuity amount were augmented at an annual rate of three percent 
 62.27  compounded annually from the day the annuity begins to accrue 
 62.28  until the normal retirement age. 
 62.29     Sec. 3.  Minnesota Statutes 2000, section 354A.011, 
 62.30  subdivision 15a, is amended to read: 
 62.31     Subd. 15a.  [NORMAL RETIREMENT AGE.] (a) "Normal retirement 
 62.32  age" means age 65 for a person who first became a member of the 
 62.33  coordinated program of the Minneapolis or St. Paul teachers 
 62.34  retirement fund association or the new law coordinated program 
 62.35  of the Duluth teachers retirement fund association or a member 
 62.36  of a pension fund listed in section 356.30, subdivision 3, 
 63.1   before July 1, 1989. 
 63.2      (b) For a member of the new law coordinated program of the 
 63.3   Duluth teachers retirement fund association, normal retirement 
 63.4   age means age 65.  
 63.5      (c) For a person who first became a member of the 
 63.6   coordinated program of the Minneapolis or St. Paul teachers 
 63.7   retirement fund association or the new law coordinated program 
 63.8   of the Duluth teachers retirement fund association after June 
 63.9   30, 1989, normal retirement age means the higher of age 65 or 
 63.10  retirement age, as defined in United States Code, title 42, 
 63.11  section 416(l), as amended, but not to exceed age 66. 
 63.12     (d) For a person who is a member of the basic program of 
 63.13  the Minneapolis or St. Paul teachers retirement fund association 
 63.14  or the old law coordinated program of the Duluth teachers 
 63.15  retirement fund association, normal retirement age means the age 
 63.16  at which a teacher becomes eligible for a normal retirement 
 63.17  annuity computed upon meeting the age and service requirements 
 63.18  specified in the applicable provisions of the articles of 
 63.19  incorporation or bylaws of the respective teachers retirement 
 63.20  fund association. 
 63.21     Sec. 4.  Minnesota Statutes 2000, section 354A.31, 
 63.22  subdivision 4a, is amended to read: 
 63.23     Subd. 4a.  [COMPUTATION OF THE NORMAL COORDINATED 
 63.24  RETIREMENT ANNUITY; DULUTH FUND.] (a) This subdivision applies 
 63.25  to the new law coordinated program of the Duluth teachers 
 63.26  retirement fund association. 
 63.27     (b) The normal coordinated retirement annuity is an amount 
 63.28  equal to a retiring coordinated member's average salary 
 63.29  multiplied by the retirement annuity formula percentage.  
 63.30  Average salary for purposes of this section means an amount 
 63.31  equal to the average salary upon which contributions were made 
 63.32  for the highest five successive years of service credit, but may 
 63.33  not in any event include any more than the equivalent of 60 
 63.34  monthly salary payments.  Average salary must be based upon all 
 63.35  years of service credit if this service credit is less than five 
 63.36  years. 
 64.1      (c) This paragraph, in conjunction with subdivision 6, 
 64.2   applies to a person who first became a member or a member in a 
 64.3   pension fund listed in section 356.30, subdivision 3, before 
 64.4   July 1, 1989, unless paragraph (d), in conjunction with 
 64.5   subdivision 7, produces a higher annuity amount, in which case 
 64.6   paragraph (d) applies.  The retirement annuity formula 
 64.7   percentage for purposes of this paragraph is the percent 
 64.8   specified in section 356.19, subdivision 1, per year for each 
 64.9   year of coordinated service for the first ten years and the 
 64.10  percent specified in section 356.19, subdivision 2, for each 
 64.11  subsequent year of coordinated service. 
 64.12     (d) This paragraph applies to a person who is at least 55 
 64.13  years old and who first becomes a member after June 30, 1989, 
 64.14  and to any other member who is at least 55 years old and whose 
 64.15  annuity amount, when calculated under this paragraph and in 
 64.16  conjunction with subdivision 7, is higher than it is when 
 64.17  calculated under paragraph (c) in conjunction with subdivision 
 64.18  6.  The retirement annuity formula percentage for purposes of 
 64.19  this paragraph is the percent specified in section 356.19, 
 64.20  subdivision 2, for each year of coordinated service. 
 64.21     Sec. 5.  Minnesota Statutes 2000, section 354A.31, 
 64.22  subdivision 5, is amended to read: 
 64.23     Subd. 5.  [UNREDUCED NORMAL RETIREMENT ANNUITY.] (a) Upon 
 64.24  retirement at the normal retirement age with at least three 
 64.25  years of service credit, a coordinated member shall be of the 
 64.26  Minneapolis teachers retirement fund association or of the St. 
 64.27  Paul teachers retirement fund association is entitled to a 
 64.28  normal retirement annuity calculated pursuant to under 
 64.29  subdivision 4.  
 64.30     (b) Upon retirement at the normal retirement age with at 
 64.31  least three years of service credit, a member of the new law 
 64.32  coordinated program of the Duluth teachers retirement fund 
 64.33  association is entitled to a normal retirement annuity 
 64.34  calculated under subdivision 4a. 
 64.35     Sec. 6.  Minnesota Statutes 2000, section 354A.31, 
 64.36  subdivision 6, is amended to read: 
 65.1      Subd. 6.  [REDUCED RETIREMENT ANNUITY.] (a) This 
 65.2   subdivision applies only to a person who first became a 
 65.3   coordinated member of the Minneapolis teachers retirement fund 
 65.4   association or of the St. Paul teacher retirement fund 
 65.5   association or a member of a pension fund listed in section 
 65.6   356.30, subdivision 3, other than the Duluth teachers retirement 
 65.7   fund association before July 1, 1989, and whose annuity is 
 65.8   higher when calculated using the retirement annuity formula 
 65.9   percentage in subdivision 4, paragraph (b), in conjunction with 
 65.10  this subdivision than when calculated under subdivision 4, 
 65.11  paragraph (c), in conjunction with subdivision 7. 
 65.12     (a) (1) Upon retirement at an age before the normal 
 65.13  retirement age with three years of service credit or prior to 
 65.14  age 62 with at least 30 years of service credit, a coordinated 
 65.15  member shall be entitled to a retirement annuity in an amount 
 65.16  equal to the normal retirement annuity calculated using the 
 65.17  retirement annuity formula percentage in subdivision 4, 
 65.18  paragraph (b), reduced by one-quarter of one percent for each 
 65.19  month that the coordinated member is under the normal retirement 
 65.20  age if the coordinated member has less than 30 years of service 
 65.21  credit or is under the age of 62 if the coordinated member has 
 65.22  at least 30 years of service credit.  
 65.23     (b) (2) Any coordinated member whose attained age plus 
 65.24  credited allowable service totals 90 years is entitled, upon 
 65.25  application, to a retirement annuity in an amount equal to the 
 65.26  normal retirement annuity calculated using the retirement 
 65.27  annuity formula percentage in subdivision 4, paragraph (b), 
 65.28  without any reduction by reason of early retirement. 
 65.29     (b) This subdivision applies only to a person who is a 
 65.30  member of the new law coordinated program of the Duluth teachers 
 65.31  retirement fund association and whose annuity is higher when 
 65.32  calculated using the retirement annuity formula percentage in 
 65.33  subdivision 4a, paragraph (b), in conjunction with this 
 65.34  subdivision than when calculated under subdivision 4a, paragraph 
 65.35  (c), in conjunction with subdivision 7. 
 65.36     (1) Upon retirement at an age before the normal retirement 
 66.1   age with three years of service credit or before age 62 with at 
 66.2   least 30 years of service credit, a member of the new law 
 66.3   coordinated program of the Duluth teachers retirement fund 
 66.4   association is entitled to a retirement annuity in an amount 
 66.5   equal to the normal retirement annuity calculated using the 
 66.6   retirement annuity formula percentage in subdivision 4a, 
 66.7   paragraph (b), reduced by one-quarter of one percent for each 
 66.8   month that the member is under the normal retirement age if the 
 66.9   member has less than 30 years of service credit or is under the 
 66.10  age of 62 if the coordinated member has at least 30 years of 
 66.11  service credit. 
 66.12     (2) A new law coordinated program member of the Duluth 
 66.13  teachers retirement fund association whose attained age plus 
 66.14  credited allowable service totals 90 years is entitled, upon 
 66.15  application, to a retirement annuity in an amount equal to the 
 66.16  normal retirement annuity calculated using the retirement 
 66.17  annuity formula percentage in subdivision 4a, paragraph (b), 
 66.18  without any reduction by reason of early retirement. 
 66.19     Sec. 7.  Minnesota Statutes 2000, section 354A.31, 
 66.20  subdivision 7, is amended to read: 
 66.21     Subd. 7.  [ACTUARIAL REDUCTION FOR EARLY RETIREMENT.] This 
 66.22  subdivision applies to a person who has become at least 55 years 
 66.23  old and first becomes became a coordinated member of the 
 66.24  Minneapolis teachers retirement fund association or of the St. 
 66.25  Paul teachers retirement fund association after June 30, 
 66.26  1989, to a member of the new law coordinated program of the 
 66.27  Duluth teachers retirement fund association who has become at 
 66.28  least 55 years old, and to any other coordinated member who has 
 66.29  become at least 55 years old and whose annuity is higher when 
 66.30  calculated using the retirement annuity formula percentage in 
 66.31  subdivision 4, paragraph (c), or in subdivision 4a, paragraph 
 66.32  (c), whichever applies, in conjunction with this subdivision 
 66.33  than when calculated under subdivision 4, paragraph (b), or in 
 66.34  subdivision 4a, paragraph (b), whichever applies, in conjunction 
 66.35  with subdivision 6.  A coordinated member who retires before the 
 66.36  full benefit age shall be paid the retirement annuity calculated 
 67.1   using the retirement annuity formula percentage in subdivision 
 67.2   4, paragraph (c), or in subdivision 4a, paragraph (c), whichever 
 67.3   applies, reduced so that the reduced annuity is the actuarial 
 67.4   equivalent of the annuity that would be payable to the member if 
 67.5   the member deferred receipt of the annuity and the annuity 
 67.6   amount were augmented at an annual rate of three percent 
 67.7   compounded annually from the day the annuity begins to accrue 
 67.8   until the normal retirement age. 
 67.9      Sec. 8.  [356.83] [LIMITATION ON THE EXTENSION OF THE RULE 
 67.10  OF 90.] 
 67.11     (a) Notwithstanding any provision of law to the contrary, 
 67.12  the "rule of 90" may not be extended to any pension plan beyond 
 67.13  the teacher retirement association and the Duluth teachers 
 67.14  retirement fund association unless the most recent prior 
 67.15  actuarial valuation of the plan prepared under section 356.215 
 67.16  by the consulting actuary retained by the legislative commission 
 67.17  on pensions and retirement indicates that the total required 
 67.18  contributions of the plan exceed the total actuarial 
 67.19  requirements of the plan by an amount equal to or greater than 
 67.20  the actuarial cost of the "rule of 90" extension for that plan 
 67.21  as estimated by the commission-retained actuary based on that 
 67.22  valuation. 
 67.23     (b) Annually, as part of the review by the legislative 
 67.24  commission on pensions and retirement of the actuarial funded 
 67.25  condition of the various statewide and major local retirement 
 67.26  plans to which the "rule of 90" has been extended to post-June 
 67.27  30, 1989, hirees, if the commission finds that the total 
 67.28  required contributions of a plan to which the "rule of 90" has 
 67.29  been extended to post-June 30, 1989, hirees are less than the 
 67.30  total actuarial requirements of the plan as reported in the most 
 67.31  recent actuarial valuation of the plan under section 356.215, 
 67.32  the commission shall recommend in the form of proposed 
 67.33  legislation an increase in equal amounts in the member and 
 67.34  employer contribution rates of the plan sufficient to cause the 
 67.35  future total required contributions of the plan to equal the 
 67.36  total actuarial requirements of the plan as disclosed in the 
 68.1   applicable actuarial valuation. 
 68.2      Sec. 9.  [EFFECTIVE DATE.] 
 68.3      Sections 1 through 8 are effective on July 1, 2002. 
 68.4                              ARTICLE 8 
 68.5                       TEACHER RETIREMENT PLANS 
 68.6                       SERVICE CREDIT PURCHASE 
 68.7                          DEADLINE EXTENSION 
 68.8      Section 1.  Laws 1999, chapter 222, article 16, section 16, 
 68.9   is amended to read: 
 68.10     Sec. 16.  [REPEALER.] 
 68.11     Sections 1 to 13 are repealed on May 16, 2002 2003. 
 68.12     Sec. 2.  Laws 2000, chapter 461, article 12, section 20, is 
 68.13  amended to read: 
 68.14     Sec. 20.  [EFFECTIVE DATE.] 
 68.15     (a) Sections 4, 5, and 11 to 20 are effective on the day 
 68.16  following final enactment. 
 68.17     (b) Sections 1, 2, 3, and 6 to 10 are effective on the day 
 68.18  following final enactment and apply retroactively to a faculty 
 68.19  member of the Lake Superior College who was granted an extended 
 68.20  leave of absence under article 19, section 4, of the united 
 68.21  technical college educators master agreement for the 1999-2000 
 68.22  academic year prior to March 20, 2000. 
 68.23     (c) Sections 5, 11, and 14, paragraph (c), expire on May 
 68.24  16, 2002 2003. 
 68.25     Sec. 3.  Laws 2001, First Special Session chapter 10, 
 68.26  article 6, section 21, is amended to read: 
 68.27     Sec. 21.  [EXPIRATION DATE.] 
 68.28     (a) The amendments in sections 1, 2, 3, 4, 10, 12, 16, 17, 
 68.29  18, 19, and 20 expire May 16, 2003. 
 68.30     (b) Sections 9 and 15 expire May 16, 2002 2003. 
 68.31     Sec. 4.  [EFFECTIVE DATE.] 
 68.32     Sections 1 to 3 are effective on the day following final 
 68.33  enactment. 
 68.34                             ARTICLE 9
 68.35                      RECODIFICATION OF SOCIAL
 68.36                    SECURITY COVERAGE PROVISIONS
 69.1      Section 1.  Minnesota Statutes 2000, section 355.01, 
 69.2   subdivision 1, is amended to read: 
 69.3      Subdivision 1.  [IN GENERAL.] For the purposes of this 
 69.4   chapter, as amended, each of the terms defined in this section 
 69.5   have has the meanings meaning ascribed to them herein.  
 69.6      Sec. 2.  Minnesota Statutes 2000, section 355.01, is 
 69.7   amended by adding a subdivision to read: 
 69.8      Subd. 2a.  [CONSTITUTIONAL OFFICER.] "Constitutional 
 69.9   officer" means a person who serves as the governor, lieutenant 
 69.10  governor, attorney general, secretary of state, state auditor, 
 69.11  or state treasurer, who is duly elected and who was sworn into 
 69.12  office. 
 69.13     Sec. 3.  Minnesota Statutes 2000, section 355.01, is 
 69.14  amended by adding a subdivision to read: 
 69.15     Subd. 2b.  [DULUTH TEACHER.] "Duluth teacher" means a 
 69.16  person employed by independent school district No. 709, Duluth, 
 69.17  who holds a position covered by the Duluth teachers retirement 
 69.18  fund association established under chapter 354A. 
 69.19     Sec. 4.  Minnesota Statutes 2000, section 355.01, is 
 69.20  amended by adding a subdivision to read: 
 69.21     Subd. 2c.  [EDUCATIONAL EMPLOYEE.] "Educational employee" 
 69.22  means an employee of the state of Minnesota or of a public 
 69.23  subdivision of the state who performs services in a position 
 69.24  covered by the teachers retirement association under chapter 354.
 69.25     Sec. 5.  Minnesota Statutes 2000, section 355.01, is 
 69.26  amended by adding a subdivision to read: 
 69.27     Subd. 2d.  [EMPLOYEE.] "Employee" means a person employed 
 69.28  by the state of Minnesota or by a political subdivision of the 
 69.29  state and includes an officer of the state of Minnesota or of a 
 69.30  political subdivision of the state. 
 69.31     Sec. 6.  Minnesota Statutes 2000, section 355.01, is 
 69.32  amended by adding a subdivision to read: 
 69.33     Subd. 2e.  [EMPLOYEE TAX.] "Employee tax" means the tax 
 69.34  imposed by section 3101 of the Internal Revenue Code of 1986. 
 69.35     Sec. 7.  Minnesota Statutes 2000, section 355.01, 
 69.36  subdivision 3, is amended to read: 
 70.1      Subd. 3.  [EMPLOYMENT.] The term (a) "Employment" means any 
 70.2   service performed by an employee in the employ of the state, or 
 70.3   any political subdivision thereof, for such that employer, 
 70.4   except: 
 70.5      (1) service which in the absence of an agreement entered 
 70.6   into under this chapter, as amended, would constitute 
 70.7   "employment" as defined in the Social Security act; or 
 70.8      (2) service which under the Social Security Act may is not 
 70.9   permitted to be included in an agreement between the state and 
 70.10  the federal Secretary of Health, Education, and Welfare Human 
 70.11  Services entered into under this chapter, as amended.  
 70.12     (b) Service which under the Social Security Act may is 
 70.13  permitted to be included in an agreement only upon certification 
 70.14  by the governor in accordance with section 218(d) (3) of that 
 70.15  act shall must be included in the term "employment" if and when 
 70.16  the governor issues, with respect to such that service, a the 
 70.17  appropriate federal certificate to the federal Secretary of 
 70.18  Health, Education, and Welfare Human Services.  
 70.19     Sec. 8.  Minnesota Statutes 2000, section 355.01, is 
 70.20  amended by adding a subdivision to read: 
 70.21     Subd. 3a.  [FEDERAL INSURANCE CONTRIBUTIONS ACT.] "Federal 
 70.22  Insurance Contributions Act" means subchapters A and B of 
 70.23  chapter 21 of the Internal Revenue Code of 1986, as amended 
 70.24  through December 31, 2000. 
 70.25     Sec. 9.  Minnesota Statutes 2000, section 355.01, is 
 70.26  amended by adding a subdivision to read: 
 70.27     Subd. 3b.  [GOVERNMENTAL EMPLOYER.] "Governmental employer" 
 70.28  means any political subdivision as defined in section 218 of the 
 70.29  Social Security Act.  The term includes a city, county, town, 
 70.30  hospital district, or other body, politic and corporate, located 
 70.31  in Minnesota. 
 70.32     Sec. 10.  Minnesota Statutes 2000, section 355.01, is 
 70.33  amended by adding a subdivision to read: 
 70.34     Subd. 3c.  [HIGHER EDUCATION EMPLOYEE.] "Higher education 
 70.35  employee" means an employee of the state of Minnesota who 
 70.36  performs services in a Minnesota state colleges and universities 
 71.1   system in a position covered by the individual retirement 
 71.2   account plan under section 354B.21 and who remains a member of 
 71.3   the teachers retirement association for purposes of social 
 71.4   security coverage only. 
 71.5      Sec. 11.  Minnesota Statutes 2000, section 355.01, is 
 71.6   amended by adding a subdivision to read: 
 71.7      Subd. 3d.  [HOSPITAL EMPLOYEE.] "Hospital employee" means 
 71.8   an officer or employee of a public hospital who performs 
 71.9   services in a position covered by the public employees 
 71.10  retirement association under chapter 353. 
 71.11     Sec. 12.  Minnesota Statutes 2000, section 355.01, is 
 71.12  amended by adding a subdivision to read: 
 71.13     Subd. 3e.  [JUDGE.] "Judge" means a judge as defined in 
 71.14  section 490.121, subdivision 3. 
 71.15     Sec. 13.  Minnesota Statutes 2000, section 355.01, is 
 71.16  amended by adding a subdivision to read: 
 71.17     Subd. 3f.  [LEGISLATOR.] "Legislator" means a member of the 
 71.18  legislature who is duly elected and who was sworn into office. 
 71.19     Sec. 14.  Minnesota Statutes 2000, section 355.01, is 
 71.20  amended by adding a subdivision to read: 
 71.21     Subd. 3g.  [LOCAL GOVERNMENTAL SUBDIVISION.] "Local 
 71.22  governmental subdivision" means: 
 71.23     (1) a political subdivision as defined in section 218(b) of 
 71.24  the Social Security Act; 
 71.25     (2) an instrumentality of the state; 
 71.26     (3) an instrumentality of one or more of the political 
 71.27  subdivisions of the state, including the league of Minnesota 
 71.28  cities; 
 71.29     (4) an instrumentality of the state and one or more of its 
 71.30  political subdivisions; 
 71.31     (5) a governmental subdivision as defined in section 
 71.32  353.01, subdivision 6; and 
 71.33     (6) any instrumentality established under a joint powers 
 71.34  agreement under section 471.59 wherein the instrumentality is 
 71.35  responsible for the employment and the payment of the salaries 
 71.36  of the employees of the instrumentality. 
 72.1      Sec. 15.  Minnesota Statutes 2000, section 355.01, is 
 72.2   amended by adding a subdivision to read: 
 72.3      Subd. 3h.  [MINNEAPOLIS TEACHER.] "Minneapolis teacher" 
 72.4   means a person employed by special school district No. 1, 
 72.5   Minneapolis, who holds a position covered by the Minneapolis 
 72.6   teachers retirement fund association established under chapter 
 72.7   354A. 
 72.8      Sec. 16.  Minnesota Statutes 2000, section 355.01, is 
 72.9   amended by adding a subdivision to read: 
 72.10     Subd. 3i.  [POLITICAL SUBDIVISION.] "Political subdivision" 
 72.11  means any political subdivision as defined in section 218(b) of 
 72.12  the Social Security Act, and includes any instrumentality of the 
 72.13  state, any instrumentality of one or more of its political 
 72.14  subdivisions, including the league of Minnesota municipalities, 
 72.15  any instrumentality of the state and one or more of its 
 72.16  political subdivisions, and an instrumentality established under 
 72.17  a joint powers agreement under section 471.59, wherein the 
 72.18  instrumentality is responsible for the employment and payment of 
 72.19  the salaries of employees of the instrumentality. 
 72.20     Sec. 17.  Minnesota Statutes 2000, section 355.01, is 
 72.21  amended by adding a subdivision to read: 
 72.22     Subd. 3j.  [PUBLIC EMPLOYEE.] "Public employee" means an 
 72.23  officer or an employee of a local governmental subdivision of 
 72.24  the state who performs services in a position covered by the 
 72.25  public employees retirement association established under 
 72.26  chapter 353. 
 72.27     Sec. 18.  Minnesota Statutes 2000, section 355.01, is 
 72.28  amended by adding a subdivision to read: 
 72.29     Subd. 3k.  [PUBLIC HOSPITAL.] "Public hospital" means a 
 72.30  hospital that is owned or operated by a governmental employer or 
 72.31  a combination of governmental employers, or a hospital that is 
 72.32  an integral part of a governmental employer or of a combination 
 72.33  of governmental employers. 
 72.34     Sec. 19.  Minnesota Statutes 2000, section 355.01, is 
 72.35  amended by adding a subdivision to read: 
 72.36     Subd. 3l.  [ST. PAUL TEACHER.] "St. Paul teacher" means a 
 73.1   person employed by independent school district No. 625, St. 
 73.2   Paul, who holds a position covered by the St. Paul teachers 
 73.3   retirement fund association established under chapter 354A. 
 73.4      Sec. 20.  Minnesota Statutes 2000, section 355.01, 
 73.5   subdivision 6, is amended to read: 
 73.6      Subd. 6.  [SECRETARY OF HEALTH AND HUMAN SERVICES.] The 
 73.7   term "Secretary of Health, Education, and Welfare Human Services"
 73.8   means the secretary of the federal Department of Health and 
 73.9   Human Services and includes any individual to whom the Secretary 
 73.10  of Health, Education, and Welfare Human Services has delegated 
 73.11  any functions under the Social Security Act with respect to 
 73.12  coverage under such act of employees of states and their 
 73.13  political subdivisions.  
 73.14     Sec. 21.  Minnesota Statutes 2000, section 355.01, 
 73.15  subdivision 8, is amended to read: 
 73.16     Subd. 8.  [SOCIAL SECURITY ACT.] The term "Social Security 
 73.17  Act" means the Act of Congress approved August 14, 1935, chapter 
 73.18  531, Statutes at Large, volume 49, page 620, officially cited as 
 73.19  the "Social Security Act," as such act has been and may from 
 73.20  time to time be amended (including the relevant regulations and 
 73.21  requirements issued pursuant thereto).  
 73.22     Sec. 22.  Minnesota Statutes 2000, section 355.01, is 
 73.23  amended by adding a subdivision to read: 
 73.24     Subd. 11.  [SPECIAL AUTHORITY OR DISTRICT.] "Special 
 73.25  authority or district" means a municipal housing and 
 73.26  redevelopment authority organized under sections 469.001 to 
 73.27  469.047, a soil and water conservation district organized under 
 73.28  chapter 103C, a port authority organized under sections 469.048 
 73.29  to 469.068, an economic development authority organized under 
 73.30  sections 469.090 to 469.108, or a hospital district organized or 
 73.31  reorganized under sections 447.31 to 447.37. 
 73.32     Sec. 23.  Minnesota Statutes 2000, section 355.01, is 
 73.33  amended by adding a subdivision to read: 
 73.34     Subd. 12.  [SPECIAL AUTHORITY OR DISTRICT 
 73.35  EMPLOYEE.] "Special authority or district employee" means an 
 73.36  employee, other than an elected official, of a municipal housing 
 74.1   and redevelopment authority organized under sections 469.001 to 
 74.2   469.047, of a soil and water conservation district organized 
 74.3   under chapter 103C, of a port authority organized under sections 
 74.4   469.048 to 469.068, of an economic development authority 
 74.5   organized under sections 469.090 to 469.108, or of a hospital 
 74.6   district organized or reorganized under sections 447.31 to 
 74.7   447.37. 
 74.8      Sec. 24.  Minnesota Statutes 2000, section 355.01, is 
 74.9   amended by adding a subdivision to read: 
 74.10     Subd. 13.  [STATE AGENCY.] "State agency" means the 
 74.11  commissioner of employee relations. 
 74.12     Sec. 25.  Minnesota Statutes 2000, section 355.01, is 
 74.13  amended by adding a subdivision to read: 
 74.14     Subd. 14.  [STATE EMPLOYEE.] "State employee" means an 
 74.15  employee of the state of Minnesota or of a political subdivision 
 74.16  who performs services in a position covered by the general state 
 74.17  employees retirement plan of the Minnesota state retirement 
 74.18  system governed by chapter 352, except any position for which 
 74.19  the compensation is on a fee basis. 
 74.20     Sec. 26.  Minnesota Statutes 2000, section 355.01, is 
 74.21  amended by adding a subdivision to read: 
 74.22     Subd. 15.  [WAGES.] "Wages" means all remuneration for 
 74.23  employment, including the cash value of all remuneration paid in 
 74.24  any medium other than cash.  The term does not include that part 
 74.25  of the remuneration which, even if it were for employment within 
 74.26  the meaning of the Federal Insurance Contributions Act, would 
 74.27  not constitute wages within the meaning of that act. 
 74.28     Sec. 27.  Minnesota Statutes 2000, section 355.02, is 
 74.29  amended to read: 
 74.30     355.02 [AGREEMENTS.] 
 74.31     Subdivision 1.  [GENERAL AUTHORITY.] (a) The state agency, 
 74.32  with the approval of the governor, is hereby authorized to enter 
 74.33  into an agreement on behalf of the state with the federal 
 74.34  Secretary of Health, Education, and Welfare Human Services, 
 74.35  consistent with the terms and provisions of this chapter, as 
 74.36  amended, for the purpose of extending the benefits of the 
 75.1   federal old age and, survivors, and disability insurance system 
 75.2   to employees of the state or any political subdivision thereof 
 75.3   with respect to services specified in such the agreement which 
 75.4   constitute "employment," whenever so specifically authorized by 
 75.5   the statutory provisions of this state pertaining to any 
 75.6   coverage group of such employees to which the agreement may 
 75.7   become applicable under the Social Security Act.  
 75.8      Pursuant to such (b) Under this specific authorization the 
 75.9   agreement may contain such those provisions relating to 
 75.10  coverage, benefits, contributions, effective date, modification 
 75.11  and termination of the agreement, administration, and other 
 75.12  appropriate provisions as the state agency and the federal 
 75.13  Secretary of Health, Education, and Welfare Human Services shall 
 75.14  agree upon, but, except as may be otherwise required by or under 
 75.15  the Social Security Act as to the services to be covered, such 
 75.16  agreement shall must provide in effect that: 
 75.17     (1) benefits will be provided for employees whose services 
 75.18  are covered by the agreement (and their dependents and 
 75.19  survivors) on the same basis as though such those services 
 75.20  constituted employment within the meaning of title II of the 
 75.21  Social Security Act; 
 75.22     (2) the state or other employer will pay to the federal 
 75.23  Secretary of the Treasury, at such time or times as may be 
 75.24  prescribed under the Social Security Act, contributions with 
 75.25  respect to wages, equal to the sum of the taxes which would be 
 75.26  imposed by the Federal Insurance Contributions Act if the 
 75.27  services covered by the agreement constituted employment within 
 75.28  the meaning of that act; 
 75.29     (3) Such the agreement shall be is effective with respect 
 75.30  to services in employment covered by the agreement performed 
 75.31  after a date specified therein but in no event may it be 
 75.32  effective with respect to any such services performed prior to 
 75.33  the first day of the calendar year in which such agreement is 
 75.34  entered into or in which the modification of the agreement 
 75.35  making it applicable to such services, is entered into except 
 75.36  that an agreement or modification entered into prior to January 
 76.1   1, 1960, may be effective with respect to services performed 
 76.2   after December 31, 1955, or after a later date specified in such 
 76.3   agreement or modification; and 
 76.4      (4) all services which constitute employment and are 
 76.5   performed in the employ of the state or any of its political 
 76.6   subdivisions by employees thereof, may be covered by such the 
 76.7   agreement whenever so specifically authorized by the statutory 
 76.8   provisions of this state pertaining to any coverage group of 
 76.9   such employees to which the agreement may become applicable 
 76.10  under the Social Security Act.  
 76.11     Subd. 2.  [INTERSTATE INSTRUMENTALITY.] (a) Any 
 76.12  instrumentality jointly created by this state and any other 
 76.13  state or states is hereby authorized, upon the granting of like 
 76.14  authority by such the other state or states, to: 
 76.15     (1) to enter into an agreement with the federal Secretary 
 76.16  of Health, Education, and Welfare Human Services whereby the 
 76.17  benefits of the federal old age and, survivors, and disability 
 76.18  insurance system shall be are extended to employees of such the 
 76.19  instrumentality,; 
 76.20     (2) to require its employees to pay (and for that purpose 
 76.21  to deduct from their wages) contributions equal to the amounts 
 76.22  which they would be required to pay under section 355.03, 
 76.23  subdivision 1, if they were covered by an agreement made 
 76.24  pursuant to under subdivision 1,; and 
 76.25     (3) to make payments to the federal Secretary of the 
 76.26  Treasury in accordance with such that agreement, including 
 76.27  payments from its own funds, and otherwise to comply with such 
 76.28  those agreements.  Such 
 76.29     (b) The agreements shall must, to the extent practicable, 
 76.30  be consistent with the terms and provisions of subdivision 1 and 
 76.31  other provisions of this chapter, as amended. 
 76.32     Subd. 3.  [GROUPS COVERED BY SOCIAL SECURITY.] The 
 76.33  following groups must be covered by an agreement or a 
 76.34  modification to an agreement between the state agency and the 
 76.35  federal Secretary of Health and Human Services: 
 76.36     (1) constitutional officers; 
 77.1      (2) Duluth teachers; 
 77.2      (3) educational employees; 
 77.3      (4) higher education employees; 
 77.4      (5) hospital employees; 
 77.5      (6) judges; 
 77.6      (7) legislators; 
 77.7      (8) Minneapolis teachers; 
 77.8      (9) public employees; 
 77.9      (10) St. Paul teachers; 
 77.10     (11) special authority or district employees; and 
 77.11     (12) state employees. 
 77.12     Sec. 28.  Minnesota Statutes 2000, section 355.03, is 
 77.13  amended to read: 
 77.14     355.03 [EMPLOYEES AND EMPLOYERS, CONTRIBUTIONS.] 
 77.15     Subdivision 1.  [EMPLOYEE CONTRIBUTION AMOUNT.] Every 
 77.16  employee of the state, or of any of its political subdivisions, 
 77.17  whose services are covered by the agreement entered into under 
 77.18  section 355.02 shall be required to must pay for the period 
 77.19  of such the coverage, into the contribution fund established by 
 77.20  section 355.04, contributions, with respect to wages, equal to 
 77.21  the amount of the employee's tax which would be imposed by the 
 77.22  Federal Insurance Contributions Act if such those services 
 77.23  constituted employment within the meaning of that act.  
 77.24  Such This liability shall arise arises in consideration of the 
 77.25  employee's retention in the service of the state, or any of its 
 77.26  political subdivisions, or the employee's entry upon such that 
 77.27  service, after the enactment of this chapter, as amended. 
 77.28     Subd. 2.  [EMPLOYEE DEDUCTION.] The contribution imposed by 
 77.29  this section shall must be collected by the covered employee's 
 77.30  employer by deducting the amount of the contribution from wages 
 77.31  as and when paid, but.  The failure to make such deduction shall 
 77.32  does not relieve the employee from liability for such 
 77.33  contribution.  
 77.34     Subd. 2a.  [EMPLOYER CONTRIBUTION.] (a) Employer 
 77.35  contributions that are required under the agreement must be paid 
 77.36  by the applicable employing unit. 
 78.1      (b) Employer contributions on behalf of St. Paul teachers, 
 78.2   Duluth teachers, Minneapolis teachers, or education employees 
 78.3   may be paid from normal school operating funds.  Employer 
 78.4   contributions on behalf of state employees must be paid by the 
 78.5   applicable department or agency from its appropriation or other 
 78.6   revenue, in the same proportion as salaries are paid, and must 
 78.7   be charged as an administrative cost of the state governmental 
 78.8   unit. 
 78.9      (c) Employing units may pay the employer contribution from 
 78.10  taxes collected or from other governmental revenue.  An 
 78.11  employing unit may include in its tax levy the amount necessary 
 78.12  to pay its social security obligations.  If the taxes authorized 
 78.13  to be levied cause the total levy amount to exceed any 
 78.14  limitation on the power of the employing unit to levy taxes, the 
 78.15  unit may still levy the necessary amount.  The employing unit, 
 78.16  in the event of a deficit, may issue debt obligations, payable 
 78.17  in not more than two years, in an amount which may cause its 
 78.18  indebtedness to exceed any limitation without holding an 
 78.19  election and may levy taxes to amortize the indebtedness.  The 
 78.20  authorized social security expenditures must not be included in 
 78.21  computing the cost of government for purposes of any home rule 
 78.22  charter or other charter. 
 78.23     (d) If the required employer contribution for social 
 78.24  security is increased and, as a result of that increase, there 
 78.25  is insufficient money available to a state governmental unit, 
 78.26  there is appropriated to the state department or agency from the 
 78.27  general fund the amount required to meet the deficiency, based 
 78.28  on certifications from the commissioner of employee relations to 
 78.29  the commissioner of finance.  The transfer of the appropriated 
 78.30  amount may only occur after the commissioner of finance notifies 
 78.31  the chair and ranking minority member of the house committee on 
 78.32  ways and means and the chair and ranking minority member of the 
 78.33  senate finance committee of the amount to be transferred. 
 78.34     (e) For members of the general state employees retirement 
 78.35  plan of the Minnesota state retirement system who are employed 
 78.36  by the state horticultural society, the department of Minnesota 
 79.1   for the disabled American veterans organization, the department 
 79.2   of Minnesota of the veterans of foreign wars organization, the 
 79.3   Minnesota crop improvement association, the Minnesota historical 
 79.4   society, the armory building commission, and the 
 79.5   Minnesota-Wisconsin-Minneapolis-St. Paul survival plan project, 
 79.6   the applicable employing unit must pay the employer contribution 
 79.7   from any revenue source that it has. 
 79.8      Subd. 3.  [ADJUSTMENTS; REFUNDS.] If more or less than the 
 79.9   correct amount of the contribution imposed by this section is 
 79.10  paid or deducted with respect to any remuneration, proper 
 79.11  adjustments, or refund if adjustment is impracticable, shall 
 79.12  must be made, without interest, in such manner and at such times 
 79.13  as the state agency shall prescribe prescribes.  
 79.14     Subd. 4.  [DELINQUENT PAYMENTS.] Delinquent payments that 
 79.15  are due under this chapter, with compound interest at the rate 
 79.16  of six percent per annum, may be recovered by legal action in a 
 79.17  court of competent jurisdiction against an employing unit that 
 79.18  is liable for the amount.  The state agency may request that the 
 79.19  delinquent payment and interest amount be deducted from any 
 79.20  other money that is payable to the applicable employing unit by 
 79.21  any department or agency of the state.  An action for the 
 79.22  recovery of delinquent payments is not subject to any statutory 
 79.23  provision that would otherwise limit the time within which an 
 79.24  action may be commenced. 
 79.25     Sec. 29.  [355.035] [REIMBURSEMENT BY EMPLOYING UNITS.] 
 79.26     An employing unit which employs a member of a covered group 
 79.27  must reimburse the state agency for its pro rata share of the 
 79.28  cost of the administration of the agency with respect to social 
 79.29  security coverage in accordance with the rules of the state 
 79.30  agency pertaining to this reimbursement.  
 79.31     Sec. 30.  [355.036] [REPORTS.] 
 79.32     An employing unit which employs a member of a covered group 
 79.33  must make any reports in the form required and must include the 
 79.34  information that the state agency requires.  An employing unit 
 79.35  also must comply with the reporting requirements that the state 
 79.36  agency or the federal Secretary of Health and Human Services may 
 80.1   from time to time determine are necessary to ensure the 
 80.2   correctness and verification of relevant information. 
 80.3      Sec. 31.  [355.037] [PROCEEDS OF SPECIAL BENEFIT TAXES.] 
 80.4      The proceeds of the special benefit taxes that are 
 80.5   authorized to be levied for redevelopment purposes under section 
 80.6   469.033, subdivision 6, may be used to defray all or part of the 
 80.7   costs incurred by any housing and redevelopment authority under 
 80.8   this chapter. 
 80.9      Sec. 32.  Minnesota Statutes 2000, section 355.05, is 
 80.10  amended to read: 
 80.11     355.05 [RULES.] 
 80.12     The state agency shall make and publish such may promulgate 
 80.13  those rules, not inconsistent with the provisions of this 
 80.14  chapter, as amended, as it finds necessary or appropriate to the 
 80.15  efficient administration of the functions with which it is 
 80.16  charged under this chapter, as amended. 
 80.17     Sec. 33.  Minnesota Statutes 2000, section 355.07, is 
 80.18  amended to read: 
 80.19     355.07 [DECLARATION OF POLICY.] 
 80.20     (a) In order to extend to employees of the state and, its 
 80.21  political subdivisions, and its other governmental employers, 
 80.22  and to the dependents and survivors of such the employees of 
 80.23  those employing units, the basic protection accorded to others 
 80.24  by the old age and, survivors, and disability insurance system 
 80.25  embodied in the Social Security Act, it is hereby declared to be 
 80.26  the policy of the legislature, subject to the limitations of 
 80.27  this chapter, that these steps are taken to provide protection 
 80.28  to employees of the state and its political subdivisions on as 
 80.29  broad a basis as may be authorized by the legislature and is 
 80.30  permitted under the Social Security Act.  
 80.31     (b) It is also the policy of the legislature that the 
 80.32  protection afforded employees in positions covered by a 
 80.33  retirement system on the date an agreement under this chapter is 
 80.34  made applicable to service performed in those positions, or 
 80.35  receiving periodic benefits under the retirement system at that 
 80.36  time, will not be impaired as a result of making the agreement 
 81.1   so applicable or as a result of legislative enactment in 
 81.2   anticipation thereof when combined with the benefits accorded 
 81.3   the employee by the Social Security Act.  
 81.4      (c) To this end, the agreement referred to in section 
 81.5   355.02 shall must not be made applicable to any service 
 81.6   performed in any position covered by a retirement system unless 
 81.7   a referendum is first held by secret ballot in which a majority 
 81.8   of "eligible employees," as defined in section 218(d) (3) of the 
 81.9   Social Security Act, vote in favor thereof, or unless a 
 81.10  retirement system is divided in two divisions or parts, one of 
 81.11  which is composed of positions of members of the system who 
 81.12  desire coverage and one of which is composed of positions of 
 81.13  members of the system who do not desire coverage under section 
 81.14  218(d) (3) of the Social Security Act, in accordance with 
 81.15  subsections (6) and (7) thereof.  
 81.16     (d) Nothing in any provision of this chapter shall 
 81.17  authorize authorizes the extension of the insurance system 
 81.18  established by this chapter, as amended, to service in any 
 81.19  police officer's or firefighter's position or in any position 
 81.20  covered by a retirement system applicable exclusively to 
 81.21  positions in one or more law enforcement or fire fighting units, 
 81.22  agencies or departments.  
 81.23     Sec. 34.  Minnesota Statutes 2000, section 355.08, is 
 81.24  amended to read: 
 81.25     355.08 [APPLICATION OF SOCIAL SECURITY ACT.] 
 81.26     The provisions of the Social Security Act, and all acts 
 81.27  amendatory thereof, shall govern relative to employees of the 
 81.28  state and, its political subdivisions, and its other 
 81.29  governmental employers subject to Minnesota Statutes, this 
 81.30  chapter 355, as amended, anything in said this chapter to the 
 81.31  contrary notwithstanding.  
 81.32     Sec. 35.  [355.091] [DIVISION OF RETIREMENT PLANS.] 
 81.33     (a) The public retirement plans enumerated in paragraph (b) 
 81.34  must be divided into two parts in accordance with section 
 81.35  218(d)(6)(c) of the Social Security Act, with one part composed 
 81.36  of plan members who did not elect social security coverage in 
 82.1   the applicable referendum and the other part composed of plan 
 82.2   members who did elect social security coverage in the applicable 
 82.3   referendum. 
 82.4      (b) The applicable public retirement plans are: 
 82.5      (1) the elective state officers retirement plan; 
 82.6      (2) the judges retirement plan; 
 82.7      (3) the legislators retirement plan; 
 82.8      (4) the Minneapolis teachers retirement fund association; 
 82.9      (5) the general employees retirement plan of the public 
 82.10  employees retirement association; 
 82.11     (6) the St. Paul teachers retirement fund association; and 
 82.12     (7) the teachers retirement association. 
 82.13     (c) Plan participants and persons electing participation 
 82.14  under section 354B.21 remain members of the teachers retirement 
 82.15  association for purposes of social security coverage only, and 
 82.16  remain covered by the applicable agreement entered into under 
 82.17  section 355.01, but are not members of the teachers retirement 
 82.18  association for any other purpose while employed in covered 
 82.19  employment. 
 82.20     Sec. 36.  [REPEALER.] 
 82.21     Minnesota Statutes 2000, sections 355.01, subdivisions 2, 
 82.22  4, 5, 9, and 10; 355.11; 355.12; 355.13; 355.14; 355.15; 355.16; 
 82.23  355.17; 355.201; 355.202; 355.203; 355.204; 355.205; 355.206; 
 82.24  355.207; 355.208; 355.209; 355.21; 355.22; 355.23; 355.24; 
 82.25  355.25; 355.26; 355.27; 355.28; 355.281; 355.282; 355.283; 
 82.26  355.284; 355.285; 355.286; 355.287; 355.288; 355.29; 355.291; 
 82.27  355.292; 355.293; 355.294; 355.295; 355.296; 355.297; 355.298; 
 82.28  355.299; 355.30; 355.311; 355.391; 355.392; 355.393; 355.41; 
 82.29  355.42; 355.43; 355.44; 355.45; 355.46; 355.48; 355.49; 355.50; 
 82.30  355.51; 355.52; 355.54; 355.55; 355.56; 355.57; 355.58; 355.59; 
 82.31  355.60; 355.61; 355.621; 355.622; 355.623; 355.624; 355.625; 
 82.32  355.626; 355.627; 355.628; 355.71; 355.72; 355.73; 355.74; 
 82.33  355.75; 355.76; 355.77; 355.78; 355.79; 355.80; 355.81; and 
 82.34  355.90, are repealed. 
 82.35     Sec. 37.  [EFFECTIVE DATE.] 
 82.36     Sections 1 to 36 are effective on July 1, 2002. 
 83.1                              ARTICLE 10
 83.2                         PUBLIC PENSION PLAN
 83.3                    ACTUARIAL ASSUMPTION REVISIONS
 83.4      Section 1.  Minnesota Statutes 2000, section 356.215, 
 83.5   subdivision 4d, is amended to read: 
 83.6      Subd. 4d.  [INTEREST AND SALARY ASSUMPTIONS.] (a) The 
 83.7   actuarial valuation must use the applicable following 
 83.8   preretirement interest assumption and the applicable following 
 83.9   postretirement interest assumption: 
 83.10                                     preretirement  postretirement 
 83.11                                     interest rate  interest rate 
 83.12             plan                      assumption     assumption 
 83.13       general state employees 
 83.14           retirement plan                  8.5%          6.0% 
 83.15       correctional state employees 
 83.16           retirement plan                  8.5           6.0 
 83.17       state patrol retirement plan         8.5           6.0 
 83.18       legislators retirement plan          8.5           6.0 
 83.19       elective state officers
 83.20           retirement plan                  8.5           6.0 
 83.21       judges retirement plan               8.5           6.0 
 83.22       general public employees 
 83.23           retirement plan                  8.5           6.0 
 83.24       public employees police and fire 
 83.25           retirement plan                  8.5           6.0 
 83.26       local government correctional 
 83.27           service retirement plan          8.5           6.0 
 83.28       teachers retirement plan             8.5           6.0 
 83.29       Minneapolis employees 
 83.30           retirement plan                  6.0           5.0 
 83.31       Duluth teachers retirement plan      8.5           8.5 
 83.32       Minneapolis teachers retirement
 83.33           plan                             8.5           8.5 
 83.34       St. Paul teachers retirement 
 83.35           plan                             8.5           8.5 
 83.36       Minneapolis police relief 
 83.37           association                      6.0           6.0 
 83.38       other local Fairmont police relief 
 83.39           associations association         5.0           5.0 
 83.40       Minneapolis fire department 
 83.41           relief association               6.0           6.0 
 83.42       other local salaried firefighters 
 83.43           Virginia fire department 
 83.44           relief associations association  5.0           5.0 
 83.45       local monthly benefit volunteer 
 83.46           firefighters relief associations 5.0           5.0 
 83.47     (b) The actuarial valuation must use the applicable 
 83.48  following single rate future salary increase assumption or the 
 83.49  applicable following graded rate future salary increase 
 83.50  assumption: 
 83.51     (1) single rate future salary increase assumption 
 83.52                                              future salary 
 83.53             plan                           increase assumption 
 83.54       legislators retirement plan                  5.0% 
 83.55       elective state officers retirement 
 83.56           plan                                     5.0 
 84.1        judges retirement plan                       5.0 
 84.2        Minneapolis police relief association        4.0 
 84.3        other local Fairmont police relief 
 84.4            associations association                 3.5 
 84.5        Minneapolis fire department relief 
 84.6            association                              4.0 
 84.7        other local salaried firefighters 
 84.8            Virginia fire department 
 84.9            relief associations association          3.5 
 84.10     (2) modified single rate future salary increase assumption 
 84.11                                              future salary 
 84.12             plan                           increase assumption
 84.13       Minneapolis employees            the prior calendar year 
 84.14         retirement plan                amount increased first by 
 84.15                                        1.0198 percent to prior 
 84.16                                        fiscal year date and  
 84.17                                        then increased by 4.0
 84.18                                        percent annually for 
 84.19                                        each future year
 84.20     (3) select and ultimate future salary increase assumption 
 84.21  or graded rate future salary increase assumption 
 84.22                                               future salary 
 84.23             plan                           increase assumption 
 84.24       general state employees             select calculation and
 84.25           retirement plan                      assumption A 
 84.26       correctional state employees 
 84.27           retirement plan                      assumption H 
 84.28       state patrol retirement plan             assumption H 
 84.29       general public employees            select calculation and
 84.30           retirement plan                      assumption B 
 84.31       public employees police and fire 
 84.32           fund retirement plan                 assumption C 
 84.33       local government correctional service 
 84.34           retirement plan                      assumption H 
 84.35       teachers retirement plan                 assumption D 
 84.36       Duluth teachers retirement plan          assumption E 
 84.37       Minneapolis teachers retirement plan     assumption F 
 84.38       St. Paul teachers retirement plan        assumption G 
 84.39       
 84.40       The select calculation: is,
 84.41       during the ten-year select period, 0.2 a designated percent
 84.42       is multiplied by the result of ten minus T, where T is 
 84.43       the number of completed years of service, and is added
 84.44       to the applicable future salary increase assumption.  The
 84.45       designated percent is 0.2 percent for the correctional state
 84.46       employees retirement plan, the state patrol retirement 
 84.47       plan, the public employees police and fire plan, and the 
 84.48       local government correctional service plan; 0.3 percent 
 84.49       for the general state employees retirement plan, the 
 84.50       general public employees retirement plan, the teachers 
 84.51       retirement plan, the Duluth teachers retirement fund  
 84.52       association, and the St. Paul teachers retirement fund  
 84.53       association; and 0.4 percent for the Minneapolis teachers
 84.54       retirement fund association.   
 84.55      
 84.56       The ultimate future salary increase assumption is: 
 84.57       
 84.58       age  A     B      C     D     E     F     G      H 
 84.59       16  6.95% 6.95% 11.50% 8.20% 8.00% 7.50% 7.25% 7.7500
 84.60                                          6.50  6.90 
 84.61       17  6.90  6.90  11.50  8.15  8.00  7.50  7.25  7.7500
 84.62                                          6.50  6.90
 84.63       18  6.85  6.85  11.50  8.10  8.00  7.50  7.25  7.7500
 84.64                                          6.50  6.90
 84.65       19  6.80  6.80  11.50  8.05  8.00  7.50  7.25  7.7500
 84.66                                          6.50  6.90
 85.1        20  6.75  6.75  11.50  8.00  8.00  7.50  7.25  7.7500
 85.2                  6.40         6.00  6.90  6.50  6.90
 85.3        21  6.70  6.70  11.50  7.95  8.00  7.50  7.25  7.1454
 85.4            6.75  6.40         6.00  6.90  6.50  6.90
 85.5        22  6.65  6.65  11.00  7.90  8.00  7.50  7.25  7.0725
 85.6            6.75  6.40         6.00  6.90  6.50  6.90
 85.7        23  6.75  6.40  10.50  6.00  6.85  6.50  6.85  7.0544
 85.8        24  6.66  6.55  10.00  7.80  7.80  7.30  7.20  7.0363
 85.9            6.75  6.40         6.00  6.80  6.50  6.80
 85.10       25  6.50  6.50   9.50  7.75  7.70  7.20  7.15  7.0000 
 85.11           6.75  6.40         6.00  6.75  6.50  6.75 
 85.12       26  6.45  6.45   9.20  7.70  7.60  7.10  7.10  7.0000
 85.13           6.75  6.36         6.00  6.70  6.50  6.70
 85.14       27  6.40  6.40   8.90  7.65  7.50  7.00  7.05  7.0000 
 85.15           6.75  6.32         6.00  6.65  6.50  6.65
 85.16       28  6.35  6.35   8.60  7.60  7.40  6.90  7.00  7.0000
 85.17           6.75  6.28         6.00  6.60  6.50  6.60
 85.18       29  6.30  6.30   8.30  7.55  7.30  6.80  6.95  7.0000
 85.19           6.75  6.24         6.00  6.55  6.50  6.55
 85.20       30  6.25  6.30   8.00  7.50  7.20  6.70  6.90  7.0000
 85.21           6.75  6.20         6.00  6.50  6.50  6.50
 85.22       31  6.20  6.25   7.80  7.45  7.10  6.60  6.85  7.0000
 85.23           6.75  6.16         6.00  6.45  6.50  6.45
 85.24       32  6.15  6.21   7.60  7.40  7.00  6.50  6.80  7.0000
 85.25           6.75  6.12         6.00  6.40  6.50  6.40
 85.26       33  6.10  6.17   7.40  7.30  6.90  6.40  6.75  7.0000
 85.27           6.75  6.08         6.00  6.35  6.50  6.35
 85.28       34  6.05  6.09   7.20  7.10  6.80  6.30  6.70  7.0000
 85.29           6.75  6.04         6.00  6.30  6.50  6.30
 85.30       35  6.00  6.05   7.00  7.00  6.70  6.20  6.65  7.0000
 85.31           6.75  6.00         6.00  6.25  6.50  6.25
 85.32       36  6.95  6.01   6.80  6.85  6.60  6.10  6.60  6.9019
 85.33           6.75  5.96         6.00  6.20  6.50  6.20
 85.34       37  5.90  5.97   6.60  6.70  6.50  6.00  6.55  6.8074
 85.35           6.75  5.92         6.00  6.15  6.50  6.15
 85.36       38  5.85  5.93   6.40  6.55  6.40  5.90  6.50  6.7125
 85.37           6.75  5.88         5.90  6.10  6.50  6.10
 85.38       39  5.80  5.89   6.20  6.40  6.30  5.80  6.40  6.6054
 85.39           6.75  5.84         5.80  6.05  6.50  6.05
 85.40       40  5.75  5.85   6.00  6.25  6.20  5.70  6.30  6.5000
 85.41       41  5.70  5.81   5.90  6.10  6.10  5.60  6.20  6.3540
 85.42           6.75  5.76         5.60  5.90  6.50  5.95
 85.43       42  5.65  5.77   5.80  5.95  6.00  5.50  6.10  6.2087
 85.44           6.75  5.72         5.50  5.80  6.50  5.90
 85.45       43  5.60  5.73   5.70  5.80  5.90  5.45  6.00  6.0622
 85.46           6.65  5.68         5.40  5.70  6.50  5.85
 85.47       44  5.55  5.69   5.60  5.65  5.80  5.40  5.90  5.9048
 85.48           6.55  5.64         5.30  5.60  6.50  5.80
 85.49       45  5.50  5.65   5.50  5.50  5.70  5.35  5.80  5.7500
 85.50           6.45  5.60         5.20  5.50  6.50  5.75
 85.51       46  5.45  5.62   5.45  5.45  5.60  5.30  5.70  5.6940
 85.52           6.35  5.56         5.10  5.40  6.40  5.70
 85.53       47  5.40  5.59   5.40  5.40  5.50  5.25  5.65  5.6375
 85.54           6.25  5.52         5.00  5.30  6.30
 85.55       48  5.35  5.56   5.35  5.35  5.45  5.20  5.60  5.5822
 85.56           6.15  5.48         5.00  5.20  6.20
 85.57       49  5.30  5.53   5.30  5.30  5.40  5.15  5.55  5.5404
 85.58           6.05  5.44         5.00  5.10  6.10
 85.59       50  5.25  5.50   5.25  5.25  5.35  5.10  5.50  5.5000
 85.60           5.95  5.40         5.00  5.00  6.00
 85.61       51  5.20  5.45   5.25  5.20  5.30  5.05  5.45  5.4384
 85.62           5.85  5.36         5.00  5.00  5.90
 85.63       52  5.15  5.40   5.25  5.15  5.25  5.00  5.40  5.3776
 85.64           5.75  5.32         5.00  5.00  5.80
 85.65       53  5.10  5.35   5.25  5.10  5.25  5.00  5.35  5.3167
 85.66           5.65  5.28         5.00  5.00  5.70
 85.67       54  5.05  5.30   5.25  5.05  5.25  5.00  5.30  5.2826
 85.68           5.55  5.24         5.00  5.00  5.60
 85.69       55  5.00  5.25   5.25  5.00  5.25  5.00  5.25  5.2500 
 85.70           5.45  5.20               5.00  5.50
 85.71       56  5.00  5.20   5.25  5.00  5.25  5.00  5.25  5.2500
 86.1            5.35  5.16               5.00  5.40  5.20
 86.2        57  5.00  5.15   5.25  5.00  5.25  5.00  5.25  5.2500
 86.3            5.25  5.12               5.00  5.30  5.15
 86.4        58  5.00  5.10   5.25  5.00  5.25  5.00  5.25  5.2500
 86.5        59  5.00  5.05   5.25  5.00  5.25  5.00  5.25  5.2500
 86.6            5.25  5.04         5.20  5.00  5.10  5.05
 86.7        60  5.00  5.00   5.25  5.00  5.25  5.00  5.25  5.2500
 86.8            5.25               5.30  5.00        5.00
 86.9        61  5.00  5.00   5.25  5.00  5.25  5.00  5.25  5.2500
 86.10           5.25               5.40  5.00        5.00
 86.11       62  5.00  5.00   5.25  5.00  5.25  5.00  5.25  5.2500
 86.12           5.25               5.50  5.00        5.00
 86.13       63  5.00  5.00   5.25  5.00  5.25  5.00  5.25  5.2500
 86.14           5.25               5.60  5.00        5.00
 86.15       64  5.00  5.00   5.25  5.00  5.25  5.00  5.25  5.2500
 86.16           5.25               5.70  5.00        5.00
 86.17       65  5.00  5.00   5.25  5.00  5.25  5.00  5.25  5.2500
 86.18           5.25               5.70  5.00        5.00
 86.19       66  5.00  5.00   5.25  5.00  5.25  5.00  5.25  5.2500
 86.20           5.25               5.70  5.00        5.00
 86.21       67  5.00  5.00   5.25  5.00  5.25  5.00  5.25  5.2500
 86.22           5.25               5.70  5.00        5.00
 86.23       68  5.00  5.00   5.25  5.00  5.25  5.00  5.25  5.2500
 86.24           5.25               5.70  5.00        5.00
 86.25       69  5.00  5.00   5.25  5.00  5.25  5.00  5.25  5.2500
 86.26           5.25               5.70  5.00        5.00
 86.27       70  5.00  5.00   5.25  5.00  5.25  5.00  5.25  5.2500
 86.28           5.25               5.70  5.00        5.00
 86.29       71  5.00  5.00         5.00
 86.30           5.25               5.70
 86.31     (c) The actuarial valuation must use the applicable 
 86.32  following payroll growth assumption for calculating the 
 86.33  amortization requirement for the unfunded actuarial accrued 
 86.34  liability where the amortization retirement is calculated as a 
 86.35  level percentage of an increasing payroll: 
 86.36                                                   payroll growth
 86.37             plan                                    assumption 
 86.38       general state employees retirement plan          5.00% 
 86.39       correctional state employees retirement plan     5.00 
 86.40       state patrol retirement plan                     5.00 
 86.41       legislators retirement plan                      5.00 
 86.42       elective state officers retirement plan          5.00 
 86.43       judges retirement plan                           5.00 
 86.44       general public employees retirement plan         6.00 
 86.45       public employees police and fire 
 86.46           retirement plan                              6.00 
 86.47       local government correctional service 
 86.48           retirement plan                              6.00 
 86.49       teachers retirement plan                         5.00 
 86.50       Duluth teachers retirement plan                  5.00 
 86.51       Minneapolis teachers retirement plan             5.00 
 86.52       St. Paul teachers retirement plan                5.00 
 86.53     Sec. 2.  [EFFECTIVE DATE.] 
 86.54     Section 1 is effective on June 30, 2002. 
 86.55                             ARTICLE 11
 86.56                    AUTHORIZATION OF ADDITIONAL
 86.57                   SUPPLEMENTAL RETIREMENT PLANS
 86.58     Section 1.  Minnesota Statutes 2001 Supplement, section 
 87.1   356.24, subdivision 1, is amended to read: 
 87.2      Subdivision 1.  [RESTRICTION; EXCEPTIONS.] It is unlawful 
 87.3   for a school district or other governmental subdivision or state 
 87.4   agency to levy taxes for, or contribute public funds to a 
 87.5   supplemental pension or deferred compensation plan that is 
 87.6   established, maintained, and operated in addition to a primary 
 87.7   pension program for the benefit of the governmental subdivision 
 87.8   employees other than: 
 87.9      (1) to a supplemental pension plan that was established, 
 87.10  maintained, and operated before May 6, 1971; 
 87.11     (2) to a plan that provides solely for group health, 
 87.12  hospital, disability, or death benefits; 
 87.13     (3) to the individual retirement account plan established 
 87.14  by chapter 354B; 
 87.15     (4) to a plan that provides solely for severance pay under 
 87.16  section 465.72 to a retiring or terminating employee; 
 87.17     (5) for employees other than personnel employed by the 
 87.18  board of trustees of the Minnesota state colleges and 
 87.19  universities and covered under the higher education supplemental 
 87.20  retirement plan under chapter 354C, if provided for in a 
 87.21  personnel policy of the public employer or in the collective 
 87.22  bargaining agreement between the public employer and the 
 87.23  exclusive representative of public employees in an appropriate 
 87.24  unit, in an amount matching employee contributions on a dollar 
 87.25  for dollar basis, but not to exceed an employer contribution of 
 87.26  $2,000 a year per employee; 
 87.27     (i) to the state of Minnesota deferred compensation plan 
 87.28  under section 352.96; or 
 87.29     (ii) in payment of the applicable portion of the 
 87.30  contribution made to any investment eligible under section 
 87.31  403(b) of the Internal Revenue Code, if the employing unit has 
 87.32  complied with any applicable pension plan provisions of the 
 87.33  Internal Revenue Code with respect to the tax-sheltered annuity 
 87.34  program during the preceding calendar year; 
 87.35     (6) for personnel employed by the board of trustees of the 
 87.36  Minnesota state colleges and universities and not covered by 
 88.1   clause (5), to the supplemental retirement plan under chapter 
 88.2   354C, if provided for in a personnel policy or in the collective 
 88.3   bargaining agreement of the public employer with the exclusive 
 88.4   representative of the covered employees in an appropriate unit, 
 88.5   in an amount matching employee contributions on a dollar for 
 88.6   dollar basis, but not to exceed an employer contribution of 
 88.7   $2,700 a year for each employee; 
 88.8      (7) to a supplemental plan or to a governmental trust to 
 88.9   save for postretirement health care expenses qualified for 
 88.10  tax-preferred treatment under the Internal Revenue Code, if 
 88.11  provided for in a personnel policy or in the collective 
 88.12  bargaining agreement of a public employer with the exclusive 
 88.13  representative of the covered employees in an appropriate unit; 
 88.14  or 
 88.15     (8) to the laborer's national industrial pension fund for 
 88.16  the employees of a governmental subdivision who are covered by a 
 88.17  collective bargaining agreement that provides for coverage by 
 88.18  that fund and that sets forth a fund contribution rate, but not 
 88.19  to exceed an employer contribution of $2,000 per year per 
 88.20  employee; 
 88.21     (9) to the plumbers' and pipefitters' national pension fund 
 88.22  for the employees of a governmental subdivision who are covered 
 88.23  by a collective bargaining agreement that provides for coverage 
 88.24  by that fund and that sets forth a fund contribution rate, but 
 88.25  not to exceed an employer contribution of $2,000 per year per 
 88.26  employee; 
 88.27     (10) to the international union of operating engineers 
 88.28  pension fund for the employees of a governmental subdivision who 
 88.29  are covered by a collective bargaining agreement that provides 
 88.30  for coverage by that fund and that sets forth a fund 
 88.31  contribution rate, but not to exceed an employer contribution of 
 88.32  $2,000 per year per employee; or 
 88.33     (11) to a supplemental plan organized and operated under 
 88.34  the federal Internal Revenue Code, as amended, that is wholly 
 88.35  and solely funded by the employee's accumulated sick leave, 
 88.36  accumulated vacation leave, and accumulated severance pay. 
 89.1      Sec. 2.  Minnesota Statutes 2000, section 356.25, is 
 89.2   amended to read: 
 89.3      356.25 [LOCAL GOVERNMENTAL PENSION FUND PROHIBITIONS; 
 89.4   EXCLUSIONS.] 
 89.5      Notwithstanding any other provision of law or charter, no 
 89.6   city, county, public agency or instrumentality, or other 
 89.7   political subdivision shall, after August 1, 1975, is required 
 89.8   or permitted to establish for any of its employees any local 
 89.9   pension plan or fund financed in whole or in part from public 
 89.10  funds, other than: 
 89.11     (1) a supplemental pension or deferred compensation plan 
 89.12  authorized under section 356.24; or 
 89.13     (2) a volunteer firefighter's relief association 
 89.14  established pursuant to under chapter 424A and governed by 
 89.15  sections 69.771 to 69.776. 
 89.16     Sec. 3.  [RATIFICATION AND VALIDATION OF CERTAIN PAST 
 89.17  ACTIONS.] 
 89.18     Any supplemental pension plan that is organized and 
 89.19  operated under section 401(a) of the federal Internal Revenue 
 89.20  Code, as amended, that is wholly and solely funded by an 
 89.21  employee's accumulated sick leave, accumulated vacation leave, 
 89.22  and accumulated severance pay, and that was established before 
 89.23  the effective date of this act and any contributions to the plan 
 89.24  that may be characterized as public funds within the meaning of 
 89.25  Minnesota Statutes, section 356.24, are hereby ratified and 
 89.26  validated. 
 89.27     Sec. 4.  [EFFECTIVE DATE.] 
 89.28     Sections 1 to 3 are effective on the day following final 
 89.29  enactment. 
 89.30                             ARTICLE 12
 89.31                       GENERAL RETIREMENT LAW
 89.32                 REORGANIZATION AND RECODIFICATION
 89.33                   PUBLIC RETIREMENT PLAN PURPOSE
 89.34     Section 1.  Minnesota Statutes 2000, section 356.001, is 
 89.35  amended to read: 
 89.36     356.001 [PURPOSE OF PUBLIC PLANS.] 
 90.1      Subdivision 1.  [EXCLUSIVE BENEFIT OF MEMBERS AND 
 90.2   BENEFICIARIES.] (a) The public plans and funds specified in 
 90.3   subdivision 4 are established to provide for the retirement of 
 90.4   their members and to provide funds for the beneficiaries of 
 90.5   members in the event of death of a member.  
 90.6      (b) The public plans and funds are established and shall 
 90.7   must be maintained for the exclusive benefit of the members and 
 90.8   the beneficiaries of the members.  Except as provided in 
 90.9   subdivisions 2 and 3, no part of the moneys of the plans and 
 90.10  funds shall may revert to the plan or fund or be used for or 
 90.11  diverted to purposes other than the exclusive benefit of the 
 90.12  members or their beneficiaries.  
 90.13     Subd. 2.  [ALLOWABLE EXPENSES.] The necessary, reasonable, 
 90.14  and direct expenses of maintaining, protecting, and 
 90.15  administering the public plan or fund, as authorized in the laws 
 90.16  governing the plan or fund, shall must be considered as 
 90.17  expenditures for the exclusive benefit of the members or their 
 90.18  beneficiaries. 
 90.19     Subd. 3.  [EFFECT OF AMENDMENTS OR TERMINATION.] (a) If a 
 90.20  public plan or fund as defined in subdivision 4 is terminated or 
 90.21  the plan or fund provisions are amended, no part of the moneys 
 90.22  held in the plan or fund shall may be used for or diverted to 
 90.23  any purpose other than the exclusive benefit of the members or 
 90.24  their beneficiaries, except as provided in this subdivision.  
 90.25     (b) If a plan or fund is terminated, all affected members 
 90.26  have a nonforfeitable interest in their benefits that were 
 90.27  accrued and funded to date.  The value of the accrued benefits 
 90.28  to be credited to the account of each affected member shall must 
 90.29  be calculated as of the date of termination and the funding 
 90.30  ratio of the plan or fund must be applied to the accrued benefit 
 90.31  of each affected member.  
 90.32     (c) The board of trustees of the plan or fund shall then, 
 90.33  as soon as administratively feasible following the termination, 
 90.34  pay each eligible member or beneficiary on behalf of a member 
 90.35  the amount in the member's account in a lump sum.  In the case 
 90.36  of a member whose whereabouts is unknown, the board shall notify 
 91.1   the member at the last known address by certified mail with 
 91.2   return receipt requested advising the member of the member's 
 91.3   right to a pending distribution.  If the member cannot be 
 91.4   located in this manner, the board shall establish a custodial 
 91.5   account for the member's benefit in a federally insured bank, 
 91.6   savings association, or credit union in which the member's 
 91.7   account balance shall must be deposited.  If the board receives 
 91.8   proof of death of a member that is satisfactory to the board, 
 91.9   the account balance shall must be paid to the beneficiary of the 
 91.10  member.  
 91.11     Subd. 4.  [COVERED PLANS AND FUNDS.] This section applies 
 91.12  to all public pension and retirement plans and funds established 
 91.13  pursuant to under the laws of the state of Minnesota that 
 91.14  receive contributions from moneys derived from taxation.  
 91.15     Subd. 5.  [CONSTRUCTION.] Nothing contained in this section 
 91.16  shall may be construed to authorize, or otherwise imply, a 
 91.17  legislative policy or intent favoring the termination of any 
 91.18  plan or fund to which this section applies.  
 91.19             PUBLIC PENSION PLAN ACTUARIAL, FINANCIAL, 
 91.20                      AND INVESTMENT REPORTING
 91.21     Sec. 2.  Minnesota Statutes 2000, section 356.20, 
 91.22  subdivision 1, is amended to read: 
 91.23     Subdivision 1.  [REPORT REQUIRED.] (a) The governing or 
 91.24  managing board or administrative officials of the public pension 
 91.25  and retirement funds enumerated in subdivision 2 shall annually 
 91.26  prepare and file a financial report following the close of each 
 91.27  fiscal year.  
 91.28     (b) This requirement shall also apply applies to any plan 
 91.29  or fund which may be a successor to any organization so 
 91.30  enumerated or to any newly formed retirement plan, fund or 
 91.31  association operating under the control or supervision of any 
 91.32  public employee group, governmental unit, or institution 
 91.33  receiving a portion of its support through legislative 
 91.34  appropriations.  
 91.35     (c) The report shall must be prepared under the supervision 
 91.36  and at the direction of the management of each fund and shall 
 92.1   must be signed by the presiding officer of the managing board of 
 92.2   the fund and the chief administrative official of the fund.  
 92.3      Sec. 3.  Minnesota Statutes 2000, section 356.20, 
 92.4   subdivision 2, is amended to read: 
 92.5      Subd. 2.  [COVERED PUBLIC PENSION PLANS AND FUNDS.] This 
 92.6   section applies to the following public pension plans: 
 92.7      (1) the general state employees retirement fund. plan of 
 92.8   the Minnesota state retirement system; 
 92.9      (2) the general employees retirement plan of the public 
 92.10  employees retirement fund. association; 
 92.11     (3) the teachers retirement association.; 
 92.12     (4) the state patrol retirement fund. plan; 
 92.13     (5) the Minneapolis teachers retirement fund association.; 
 92.14     (6) the St. Paul teachers retirement fund association.; 
 92.15     (7) the Duluth teachers retirement fund association.; 
 92.16     (8) the Minneapolis employees retirement fund.; 
 92.17     (9) the University of Minnesota faculty retirement plan.; 
 92.18     (10) the University of Minnesota faculty supplemental 
 92.19  retirement plan.; 
 92.20     (11) the judges retirement fund.; 
 92.21     (12) Any a police or firefighter's relief association 
 92.22  enumerated described in section 69.77, subdivision 1a, or 
 92.23  69.771, subdivision 1.; 
 92.24     (13) the public employees police and fire fund. plan of the 
 92.25  public employees retirement association; 
 92.26     (14) the correctional state employees retirement plan of 
 92.27  the Minnesota state retirement system correctional officers 
 92.28  retirement fund.; and 
 92.29     (15) public employees the local government correctional 
 92.30  service retirement plan of the public employees retirement 
 92.31  association. 
 92.32     Sec. 4.  Minnesota Statutes 2000, section 356.20, 
 92.33  subdivision 3, is amended to read: 
 92.34     Subd. 3.  [FILING REQUIREMENT.] The financial report is a 
 92.35  public record.  A copy of the report or a synopsis of the report 
 92.36  containing the information required by this section shall must 
 93.1   be distributed annually to each member of the fund and to the 
 93.2   governing body of each governmental subdivision of the state 
 93.3   which makes employers contributions thereto or in whose behalf 
 93.4   taxes are levied for the employers' contribution.  A signed copy 
 93.5   of the report shall must be delivered to the executive director 
 93.6   of the legislative commission on pensions and retirement and to 
 93.7   the legislative reference library not later than six months 
 93.8   after the close of each fiscal year or one month following the 
 93.9   completion and delivery to the retirement fund of the actuarial 
 93.10  valuation report of the fund by the actuary retained by the 
 93.11  legislative commission on pensions and retirement, if 
 93.12  applicable, whichever is later.  
 93.13     Sec. 5.  Minnesota Statutes 2000, section 356.20, 
 93.14  subdivision 4, is amended to read: 
 93.15     Subd. 4.  [CONTENTS OF FINANCIAL REPORT.] (a) The financial 
 93.16  report required by this section must contain financial 
 93.17  statements and disclosures that indicate the financial 
 93.18  operations and position of the retirement plan and fund.  The 
 93.19  report must conform with generally accepted governmental 
 93.20  accounting principles, applied on a consistent basis.  The 
 93.21  report must be audited.  The report must include, as part of its 
 93.22  exhibits or footnotes, an actuarial disclosure item based on the 
 93.23  actuarial valuation calculations prepared by the 
 93.24  commission-retained actuary or by the actuary retained by the 
 93.25  retirement fund or plan, if applicable, according to applicable 
 93.26  actuarial requirements enumerated in section 356.215, and 
 93.27  specified in the most recent standards for actuarial work 
 93.28  adopted by the legislative commission on pensions and 
 93.29  retirement.  The accrued assets, the accrued liabilities, 
 93.30  including accrued reserves, and the unfunded actuarial accrued 
 93.31  liability of the fund or plan must be disclosed.  The disclosure 
 93.32  item must contain a declaration by the actuary retained by the 
 93.33  legislative commission on pensions and retirement or the actuary 
 93.34  retained by the fund or plan, whichever applies, specifying that 
 93.35  the required reserves for any retirement, disability, or 
 93.36  survivor benefits provided under a benefit formula are computed 
 94.1   in accordance with the entry age actuarial cost method and with 
 94.2   the most recent applicable standards for actuarial work adopted 
 94.3   by the legislative commission on pensions and retirement. 
 94.4      (a) (b) Assets of the fund or plan contained in the 
 94.5   disclosure item must include the following statement of the 
 94.6   actuarial value of current assets as defined in section 356.215, 
 94.7   subdivision 1: 
 94.8                                       Value         Value 
 94.9                                      at cost       at market
 94.10   Cash, cash equivalents, and  
 94.11     short-term securities           .........     ......... 
 94.12   Accounts receivable               .........     .........
 94.13   Accrued investment income         .........     .........  
 94.14   Fixed income investments          .........     ......... 
 94.15   Equity investments other 
 94.16     than real estate                .........     ......... 
 94.17   Real estate investments           .........     ......... 
 94.18   Equipment                         .........     ......... 
 94.19   Equity in the Minnesota 
 94.20     postretirement investment
 94.21     fund                            .........     ......... 
 94.22   Other                             .........     .........  
 94.23    
 94.24   Total assets 
 94.25     Value at cost                                 .........
 94.26     Value at market                               ......... 
 94.27     Value of current assets                       ......... 
 94.28     (b) (c) The unfunded actuarial accrued liability of the 
 94.29  fund or plan contained in the disclosure item must include the 
 94.30  following measures of unfunded actuarial accrued liability, 
 94.31  using the value of current assets:  
 94.32     (1) unfunded actuarial accrued liability, determined by 
 94.33  subtracting the current assets and the present value of future 
 94.34  normal costs from the total current and expected future benefit 
 94.35  obligations; and 
 94.36     (2) unfunded pension benefit obligation, determined by 
 95.1   subtracting the current assets from the actuarial present value 
 95.2   of credited projected benefits. 
 95.3      If the current assets of the fund or plan exceed the 
 95.4   actuarial accrued liabilities, the excess must be disclosed and 
 95.5   indicated as a surplus. 
 95.6      (c) (d) The pension benefit obligations schedule included 
 95.7   in the disclosure must contain the following information on the 
 95.8   benefit obligations: 
 95.9      (1) the pension benefit obligation, determined as the 
 95.10  actuarial present value of credited projected benefits on 
 95.11  account of service rendered to date, separately identified as 
 95.12  follows: 
 95.13           (i) for annuitants;
 95.14                 retirement annuities;
 95.15                 disability benefits;
 95.16                 surviving spouse and child benefits;
 95.17           (ii)  for former members without vested rights;
 95.18           (iii) for deferred annuitants' benefits, including 
 95.19                 any augmentation;
 95.20           (iv)  for active employees;
 95.21                 accumulated employee contributions,
 95.22                 including allocated investment income;
 95.23                 employer-financed benefits vested;
 95.24                 employer-financed benefits nonvested;
 95.25                 total pension benefit obligation; and
 95.26     (2) if there are additional benefits not appropriately 
 95.27  covered by the foregoing items of benefit obligations, a 
 95.28  separate identification of the obligation. 
 95.29     (d) (e) Any additional statements or exhibits or more 
 95.30  detailed or subdivided itemization of a disclosure item that 
 95.31  will enable the management of the fund to portray a true 
 95.32  interpretation of the fund's financial condition must be 
 95.33  included in the additional statements or exhibits. 
 95.34     Sec. 6.  Minnesota Statutes 2000, section 356.20, 
 95.35  subdivision 4a, is amended to read: 
 95.36     Subd. 4a.  [FINANCIAL REPORT FOR POLICE OR FIREFIGHTERS 
 96.1   RELIEF ASSOCIATION.] For any police or firefighter's relief 
 96.2   association referred to in subdivision 2, clause (12), a 
 96.3   financial report duly filed pursuant to and meeting the 
 96.4   requirements of section 69.051 shall must be deemed to have met 
 96.5   the requirements of subdivision 4. 
 96.6      Sec. 7.  Minnesota Statutes 2000, section 356.215, as 
 96.7   amended by Laws 2001, First Special Session chapter 10, article 
 96.8   11, section 18, is amended to read: 
 96.9      356.215 [ACTUARIAL VALUATIONS AND EXPERIENCE STUDIES.] 
 96.10     Subdivision 1.  [DEFINITIONS.] (a) For the purposes of 
 96.11  sections 3.85 and 356.20 to 356.23, each of the terms in the 
 96.12  following paragraphs have the meaning given. 
 96.13     (b) "Actuarial valuation" means a set of calculations 
 96.14  prepared by the actuary retained by the legislative commission 
 96.15  on pensions and retirement if so required under section 3.85, or 
 96.16  otherwise, by an approved actuary, to determine the normal cost 
 96.17  and the accrued actuarial liabilities of a benefit plan, 
 96.18  according to the entry age actuarial cost method and based upon 
 96.19  stated assumptions including, but not limited to rates of 
 96.20  interest, mortality, salary increase, disability, withdrawal, 
 96.21  and retirement and to determine the payment necessary to 
 96.22  amortize over a stated period any unfunded accrued actuarial 
 96.23  liability disclosed as a result of the actuarial valuation of 
 96.24  the benefit plan. 
 96.25     (c) "Approved actuary" means a person who is regularly 
 96.26  engaged in the business of providing actuarial services and who 
 96.27  has at least 15 years of service to major public employee 
 96.28  pension or retirement funds or who is a fellow in the society of 
 96.29  actuaries.  
 96.30     (d) "Entry age actuarial cost method" means an actuarial 
 96.31  cost method under which the actuarial present value of the 
 96.32  projected benefits of each individual currently covered by the 
 96.33  benefit plan and included in the actuarial valuation is 
 96.34  allocated on a level basis over the service of the individual, 
 96.35  if the benefit plan is governed by section 69.773, or over the 
 96.36  earnings of the individual, if the benefit plan is governed by 
 97.1   any other law, between the entry age and the assumed exit age, 
 97.2   with the portion of this the actuarial present value which is 
 97.3   allocated to the valuation year to be the normal cost and the 
 97.4   portion of this the actuarial present value not provided for at 
 97.5   the valuation date by the actuarial present value of future 
 97.6   normal costs to be the actuarial accrued liability, with 
 97.7   aggregation in the calculation process to be the sum of the 
 97.8   calculated result for each covered individual and with 
 97.9   recognition given to any different benefit formulas which may 
 97.10  apply to various periods of service. 
 97.11     (e) "Experience study" means a report providing experience 
 97.12  data and an actuarial analysis of the adequacy of the actuarial 
 97.13  assumptions on which actuarial valuations are based. 
 97.14     (f) "Current assets" means: 
 97.15     (1) for the July 1, 1999, actuarial valuation, the value of 
 97.16  all assets at cost, including realized capital gains or losses, 
 97.17  plus one-third of any unrealized capital gains or losses; 
 97.18     (2) for the July 1, 2000, actuarial valuation, the market 
 97.19  value of all assets as of June 30, 2000, reduced by: 
 97.20     (i) 60 percent of the difference between the market value 
 97.21  of all assets as of June 30, 1999, and the actuarial value of 
 97.22  assets used in the July 1, 1999, actuarial valuation, and 
 97.23     (ii) 80 percent of the difference between the actual net 
 97.24  change in the market value of assets between June 30, 1999, and 
 97.25  June 30, 2000, and the computed increase in the market value of 
 97.26  assets between June 30, 1999, and June 30, 2000, if the assets 
 97.27  had increased at the percentage preretirement interest rate 
 97.28  assumption used in the July 1, 1999, actuarial valuation; 
 97.29     (3) for the July 1, 2001, actuarial valuation, the market 
 97.30  value of all assets as of June 30, 2001, reduced by: 
 97.31     (i) 30 percent of the difference between the market value 
 97.32  of all assets as of June 30, 1999, and the actuarial value of 
 97.33  assets used in the July 1, 1999, actuarial valuation; 
 97.34     (ii) 60 percent of the difference between the actual net 
 97.35  change in the market value of assets between June 30, 1999, and 
 97.36  June 30, 2000, and the computed increase in the market value of 
 98.1   assets between June 30, 1999, and June 30, 2000, if the assets 
 98.2   had increased at the percentage preretirement interest rate 
 98.3   assumption used in the July 1, 1999, actuarial valuation; and 
 98.4      (iii) 80 percent of the difference between the actual net 
 98.5   change in the market value of assets between June 30, 2000, and 
 98.6   June 30, 2001, and the computed increase in the market value of 
 98.7   assets between June 30, 2000, and June 30, 2001, if the assets 
 98.8   had increased at the percentage preretirement interest rate 
 98.9   assumption used in the July 1, 2000, actuarial valuation; 
 98.10     (4) (2) for the July 1, 2002, actuarial valuation, the 
 98.11  market value of all assets as of June 30, 2002, reduced by: 
 98.12     (i) ten percent of the difference between the market value 
 98.13  of all assets as of June 30, 1999, and the actuarial value of 
 98.14  assets used in the July 1, 1999, actuarial valuation; 
 98.15     (ii) 40 percent of the difference between the actual net 
 98.16  change in the market value of assets between June 30, 1999, and 
 98.17  June 30, 2000, and the computed increase in the market value of 
 98.18  assets between June 30, 1999, and June 30, 2000, if the assets 
 98.19  had increased at the percentage preretirement interest rate 
 98.20  assumption used in the July 1, 1999, actuarial valuation; 
 98.21     (iii) 60 percent of the difference between the actual net 
 98.22  change in the market value of assets between June 30, 2000, and 
 98.23  June 30, 2001, and the computed increase in the market value of 
 98.24  assets between June 30, 2000, and June 30, 2001, if the assets 
 98.25  had increased at the percentage preretirement interest rate 
 98.26  assumption used in the July 1, 2000, actuarial valuation; and 
 98.27     (iv) 80 percent of the difference between the actual net 
 98.28  change in the market value of assets between June 30, 2001, and 
 98.29  June 30, 2002, and the computed increase in the market value of 
 98.30  assets between June 30, 2001, and June 30, 2002, if the assets 
 98.31  had increased at the percentage preretirement interest rate 
 98.32  assumption used in the July 1, 2001, actuarial valuation; or 
 98.33     (5) (3) for any actuarial valuation after July 1, 2002, the 
 98.34  market value of all assets as of the preceding June 30, reduced 
 98.35  by: 
 98.36     (i) 20 percent of the difference between the actual net 
 99.1   change in the market value of assets between the June 30 that 
 99.2   occurred three years earlier and the June 30 that occurred four 
 99.3   years earlier and the computed increase in the market value of 
 99.4   assets over that fiscal year period if the assets had increased 
 99.5   at the percentage preretirement interest rate assumption used in 
 99.6   the actuarial valuation for the July 1 that occurred four years 
 99.7   earlier; 
 99.8      (ii) 40 percent of the difference between the actual net 
 99.9   change in the market value of assets between the June 30 that 
 99.10  occurred two years earlier and the June 30 that occurred three 
 99.11  years earlier and the computed increase in the market value of 
 99.12  assets over that fiscal year period if the assets had increased 
 99.13  at the percentage preretirement interest rate assumption used in 
 99.14  the actuarial valuation for the July 1 that occurred three years 
 99.15  earlier; 
 99.16     (iii) 60 percent of the difference between the actual net 
 99.17  change in the market value of assets between the June 30 that 
 99.18  occurred one year earlier and the June 30 that occurred two 
 99.19  years earlier and the computed increase in the market value of 
 99.20  assets over that fiscal year period if the assets had increased 
 99.21  at the percentage preretirement interest rate assumption used in 
 99.22  the actuarial valuation for the July 1 that occurred two years 
 99.23  earlier; and 
 99.24     (iv) 80 percent of the difference between the actual net 
 99.25  change in the market value of assets between the immediately 
 99.26  prior June 30 and the June 30 that occurred one year earlier and 
 99.27  the computed increase in the market value of assets over that 
 99.28  fiscal year period if the assets had increased at the percentage 
 99.29  preretirement interest rate assumption used in the actuarial 
 99.30  valuation for the July 1 that occurred one year earlier. 
 99.31     (g) "Unfunded actuarial accrued liability" means the total 
 99.32  current and expected future benefit obligations, reduced by the 
 99.33  sum of current assets and the present value of future normal 
 99.34  costs. 
 99.35     (h) "Pension benefit obligation" means the actuarial 
 99.36  present value of credited projected benefits, determined as the 
100.1   actuarial present value of benefits estimated to be payable in 
100.2   the future as a result of employee service attributing an equal 
100.3   benefit amount, including the effect of projected salary 
100.4   increases and any step rate benefit accrual rate differences, to 
100.5   each year of credited and expected future employee service. 
100.6      Subd. 2.  [REQUIREMENTS.] (a) It is the policy of the 
100.7   legislature that it is necessary and appropriate to determine 
100.8   annually the financial status of tax supported retirement and 
100.9   pension plans for public employees.  To achieve this goal:  
100.10     (1) the legislative commission on pensions and retirement 
100.11  shall have prepared by the actuary retained by the commission 
100.12  annual actuarial valuations of the retirement plans enumerated 
100.13  in section 3.85, subdivision 11, paragraph (b), and quadrennial 
100.14  experience studies of the retirement plans enumerated in section 
100.15  3.85, subdivision 11, paragraph (b), clauses (1), (2), and (7); 
100.16  and 
100.17     (2) the commissioner of finance may have prepared by the 
100.18  actuary retained by the commission, two years after each set of 
100.19  quadrennial experience studies, quadrennial projection 
100.20  valuations of at least one of the retirement plans enumerated in 
100.21  section 3.85, subdivision 11, paragraph (b), for which the 
100.22  commissioner determines that the analysis may be beneficial.  
100.23     (b) The governing or managing board or administrative 
100.24  officials of each public pension and retirement fund or plan 
100.25  enumerated in section 356.20, subdivision 2, clauses (9), (10), 
100.26  and (12), shall have prepared by an approved actuary annual 
100.27  actuarial valuations of their respective funds as provided in 
100.28  this section.  This requirement also applies to any fund or plan 
100.29  that is the successor to any organization enumerated in section 
100.30  356.20, subdivision 2, or to the governing or managing board or 
100.31  administrative officials of any newly formed retirement fund, 
100.32  plan, or association operating under the control or supervision 
100.33  of any public employee group, governmental unit, or institution 
100.34  receiving a portion of its support through legislative 
100.35  appropriations, and any local police or fire fund coming within 
100.36  the provisions of to which section 356.216 applies. 
101.1      Subd. 2a.  [PROJECTION VALUATION REQUIREMENTS.] (a) A 
101.2   quadrennial projection valuation required authorized under 
101.3   subdivision 2 is intended to serve as an additional analytical 
101.4   tool with which policy makers may assess the future funding 
101.5   status of public plans through forecasting and testing various 
101.6   potential outcomes over time if certain plan assumptions or 
101.7   valuation methods were to be modified.  
101.8      (b) In consultation with the retirement fund directors, the 
101.9   state economist, the state demographer, the commissioner of 
101.10  finance, and the commissioner of employee relations, the actuary 
101.11  retained by the legislative commission on pensions and 
101.12  retirement shall perform the quadrennial projection valuations 
101.13  on behalf of the commissioner of finance, testing future 
101.14  implications for plan funding by modifying assumptions and 
101.15  methods currently in place.  The commission-retained actuary 
101.16  shall provide advice to the commissioner as to the periods over 
101.17  which such projections should be made, the nature and scope of 
101.18  the scenarios to be analyzed, and the measures of funding status 
101.19  to be employed, and shall report the results of these analyses 
101.20  in the same manner as for quadrennial experience studies. 
101.21     Subd. 3.  [REPORTS.] (a) The actuarial valuations required 
101.22  annually must be made as of the beginning of each fiscal year.  
101.23     (b) Two copies of the valuation must be delivered to the 
101.24  executive director of the legislative commission on pensions and 
101.25  retirement, to the commissioner of finance and to the 
101.26  legislative reference library, not later than the first day of 
101.27  the sixth month occurring after the end of the previous fiscal 
101.28  year.  
101.29     (c) Two copies of a quadrennial experience study must be 
101.30  filed with the executive director of the legislative commission 
101.31  on pensions and retirement, with the commissioner of finance, 
101.32  and with the legislative reference library, not later than the 
101.33  first day of the 11th month occurring after the end of the last 
101.34  fiscal year of the four-year period which the experience study 
101.35  covers.  
101.36     (d) For actuarial valuations and experience studies 
102.1   prepared at the direction of the legislative commission on 
102.2   pensions and retirement, two copies of the document must be 
102.3   delivered to the governing or managing board or administrative 
102.4   officials of the applicable public pension and retirement fund 
102.5   or plan. 
102.6      Subd. 4.  [ACTUARIAL VALUATION; CONTENTS.] (a) The 
102.7   actuarial valuation must be made in conformity with the 
102.8   requirements of the definition contained in subdivision 1 and 
102.9   the most recent standards for actuarial work adopted by the 
102.10  legislative commission on pensions and retirement.  
102.11     (b) The actuarial valuation must measure all aspects of the 
102.12  benefit plan of the fund in accordance with changes in benefit 
102.13  plans, if any, and salaries reasonably anticipated to be in 
102.14  force during the ensuing fiscal year.  The actuarial valuation 
102.15  must be prepared in accordance with the entry age actuarial cost 
102.16  method.  The actuarial valuation required under this section 
102.17  must include the information required in subdivisions 4a 5 to 4k 
102.18  15. 
102.19     Subd. 4a 5.  [NORMAL COST.] For a fund providing benefits 
102.20  in whole or in part under a defined benefit plan, the actuarial 
102.21  valuation must indicate the level normal cost of the benefits 
102.22  provided by under the laws governing the fund as of the date of 
102.23  the valuation, calculated in accordance with the entry age 
102.24  actuarial cost method.  The normal cost must be expressed as a 
102.25  level percentage of the present value of future payrolls of the 
102.26  active participants of the fund as of the date of the valuation. 
102.27     Subd. 4b 6.  [ACCRUED LIABILITY.] For a fund providing 
102.28  benefits under a defined benefit plan, the actuarial valuation 
102.29  must contain an exhibit indicating the actuarial accrued 
102.30  liabilities of the fund.  This figure is the present value of 
102.31  future benefits, reduced by the present value of future normal 
102.32  costs, calculated in accordance with the entry age actuarial 
102.33  cost method. 
102.34     Subd. 4c 7.  [DEFINED CONTRIBUTION PLAN ACCUMULATIONS.] For 
102.35  each fund providing benefits under the a money purchase or 
102.36  defined contribution plan, the actuarial valuation shall must 
103.1   contain an exhibit indicating the member contributions 
103.2   accumulated at interest, as apportioned to members accounts, to 
103.3   the date of the valuation.  These accumulations shall must be 
103.4   separately tabulated in a manner which properly reflects any 
103.5   differences in money purchase or defined contribution annuity 
103.6   rates which may apply. 
103.7      Subd. 4d 8.  [INTEREST AND SALARY ASSUMPTIONS.] (a) The 
103.8   actuarial valuation must use the applicable following 
103.9   preretirement interest assumption and the applicable following 
103.10  postretirement interest assumption: 
103.11                                     preretirement  postretirement 
103.12                                     interest rate  interest rate 
103.13              plan                      assumption     assumption 
103.14       general state employees 
103.15           retirement plan                  8.5%          6.0% 
103.16       correctional state employees 
103.17           retirement plan                  8.5           6.0 
103.18       state patrol retirement plan         8.5           6.0 
103.19       legislators retirement plan          8.5           6.0 
103.20       elective state officers
103.21           retirement plan                  8.5           6.0 
103.22       judges retirement plan               8.5           6.0 
103.23       general public employees 
103.24           retirement plan                  8.5           6.0 
103.25       public employees police and fire 
103.26           retirement plan                  8.5           6.0 
103.27       local government correctional 
103.28           service retirement plan          8.5           6.0 
103.29       teachers retirement plan             8.5           6.0 
103.30       Minneapolis employees 
103.31           retirement plan                  6.0           5.0 
103.32       Duluth teachers retirement plan      8.5           8.5 
103.33       Minneapolis teachers retirement
103.34           plan                             8.5           8.5 
103.35       St. Paul teachers retirement 
103.36           plan                             8.5           8.5 
103.37       Minneapolis police relief 
103.38           association                      6.0           6.0 
103.39       other local Fairmont police relief 
103.40           associations association         5.0           5.0 
103.41       Minneapolis fire department 
103.42           relief association               6.0           6.0 
103.43       other local salaried firefighters 
103.44       Virginia fire department
103.45       relief associations association      5.0           5.0 
103.46       local monthly benefit volunteer 
103.47           firefighters relief associations 5.0           5.0 
103.48     (b) The actuarial valuation must use the applicable 
103.49  following single rate future salary increase assumption, the 
103.50  applicable following modified single rate future salary increase 
103.51  assumption, or the applicable following graded rate future 
103.52  salary increase assumption: 
103.53     (1) single rate future salary increase assumption 
103.54                                              future salary 
104.1               plan                          increase assumption 
104.2        legislators retirement plan                  5.0% 
104.3        elective state officers retirement 
104.4            plan                                     5.0 
104.5        judges retirement plan                       5.0 
104.6        Minneapolis police relief association        4.0 
104.7        other local Fairmont police relief 
104.8        associations association                     3.5 
104.9        Minneapolis fire department relief 
104.10           association                              4.0 
104.11       other local salaried firefighters  
104.12           Virginia fire department
104.13           relief associations association          3.5 
104.14     (2) modified single rate future salary increase assumption 
104.15                                              future salary 
104.16                 plan                       increase assumption
104.17           Minneapolis employees        the prior calendar year 
104.18             retirement plan            amount increased first by 
104.19                                        1.0198 percent to prior 
104.20                                        fiscal year date and
104.21                                        then increased by 4.0 
104.22                                        percent annually for
104.23                                        each future year
104.24     (3) select and ultimate future salary increase assumption 
104.25  or graded rate future salary increase assumption 
104.26                                               future salary 
104.27                 plan                       increase assumption 
104.28       general state employees             select calculation and
104.29           retirement plan                      assumption A 
104.30       correctional state employees 
104.31           retirement plan                      assumption H 
104.32       state patrol retirement plan             assumption H 
104.33       general public employees            select calculation and
104.34           retirement plan                      assumption B 
104.35       public employees police and fire 
104.36           fund retirement plan                 assumption C 
104.37       local government correctional service 
104.38           retirement plan                      assumption H 
104.39       teachers retirement plan                 assumption D 
104.40       Duluth teachers retirement plan          assumption E 
104.41       Minneapolis teachers retirement plan     assumption F 
104.42       St. Paul teachers retirement plan        assumption G 
104.43       
104.44       The select calculation is:
104.45       during the ten-year select period, 0.2 a designated percent
104.46       is multiplied by the result of ten minus T, where T is 
104.47       the number of completed years of service, and is added
104.48       to the applicable future salary increase assumption.  The
104.49       designated percent is 0.2 percent for the correctional state
104.50       employees retirement plan, the state patrol retirement
104.51       plan, the public employees police and fire plan, and the
104.52       local government correctional service plan; 0.3 percent
104.53       for the general state employees retirement plan, the
104.54       general public employees retirement plan, the teachers
104.55       retirement plan, the Duluth teachers retirement fund
104.56       association, and the St. Paul teachers retirement fund
104.57       association; and 0.4 percent for the Minneapolis teachers
104.58       retirement fund association.
104.59       
104.60            The ultimate future salary increase assumption is:
104.61       
104.62       age  A     B      C     D     E     F     G      H 
104.63       16  6.95% 6.95% 11.50% 8.20% 8.00% 7.50% 7.25% 7.7500
104.64                                          6.50  6.90 
104.65       17  6.90  6.90  11.50  8.15  8.00  7.50  7.25  7.7500
104.66                                          6.50  6.90
105.1        18  6.85  6.85  11.50  8.10  8.00  7.50  7.25  7.7500
105.2                                           6.50  6.90
105.3        19  6.80  6.80  11.50  8.05  8.00  7.50  7.25  7.7500
105.4                                           6.50  6.90
105.5        20  6.75  6.75  11.50  8.00  8.00  7.50  7.25  7.7500
105.6                  6.40         6.00  6.90  6.50  6.90
105.7        21  6.70  6.70  11.50  7.95  8.00  7.50  7.25  7.1454
105.8            6.75  6.40         6.00  6.90  6.50  6.90
105.9        22  6.65  6.65  11.00  7.90  8.00  7.50  7.25  7.0725
105.10           6.75  6.40         6.00  6.90  6.50  6.90
105.11       23  6.75  6.40  10.50  6.00  6.85  6.50  6.85  7.0544
105.12       24  6.66  6.55  10.00  7.80  7.80  7.30  7.20  7.0363
105.13           6.75  6.40         6.00  6.80  6.50  6.80
105.14       25  6.50  6.50   9.50  7.75  7.70  7.20  7.15  7.0000 
105.15           6.75  6.40         6.00  6.75  6.50  6.75 
105.16       26  6.45  6.45   9.20  7.70  7.60  7.10  7.10  7.0000
105.17           6.75  6.36         6.00  6.70  6.50  6.70
105.18       27  6.40  6.40   8.90  7.65  7.50  7.00  7.05  7.0000 
105.19           6.75  6.32         6.00  6.65  6.50  6.65
105.20       28  6.35  6.35   8.60  7.60  7.40  6.90  7.00  7.0000
105.21           6.75  6.28         6.00  6.60  6.50  6.60
105.22       29  6.30  6.30   8.30  7.55  7.30  6.80  6.95  7.0000
105.23           6.75  6.24         6.00  6.55  6.50  6.55
105.24       30  6.25  6.30   8.00  7.50  7.20  6.70  6.90  7.0000
105.25           6.75  6.20         6.00  6.50  6.50  6.50
105.26       31  6.20  6.25   7.80  7.45  7.10  6.60  6.85  7.0000
105.27           6.75  6.16         6.00  6.45  6.50  6.45
105.28       32  6.15  6.21   7.60  7.40  7.00  6.50  6.80  7.0000
105.29           6.75  6.12         6.00  6.40  6.50  6.40
105.30       33  6.10  6.17   7.40  7.30  6.90  6.40  6.75  7.0000
105.31           6.75  6.08         6.00  6.35  6.50  6.35
105.32       34  6.05  6.09   7.20  7.10  6.80  6.30  6.70  7.0000
105.33           6.75  6.04         6.00  6.30  6.50  6.30
105.34       35  6.00  6.05   7.00  7.00  6.70  6.20  6.65  7.0000
105.35           6.75  6.00         6.00  6.25  6.50  6.25
105.36       36  6.95  6.01   6.80  6.85  6.60  6.10  6.60  6.9019
105.37           6.75  5.96         6.00  6.20  6.50  6.20
105.38       37  5.90  5.97   6.60  6.70  6.50  6.00  6.55  6.8074
105.39           6.75  5.92         6.00  6.15  6.50  6.15
105.40       38  5.85  5.93   6.40  6.55  6.40  5.90  6.50  6.7125
105.41           6.75  5.88         5.90  6.10  6.50  6.10
105.42       39  5.80  5.89   6.20  6.40  6.30  5.80  6.40  6.6054
105.43           6.75  5.84         5.80  6.05  6.50  6.05
105.44       40  5.75  5.85   6.00  6.25  6.20  5.70  6.30  6.5000
105.45       41  5.70  5.81   5.90  6.10  6.10  5.60  6.20  6.3540
105.46           6.75  5.76         5.60  5.90  6.50  5.95
105.47       42  5.65  5.77   5.80  5.95  6.00  5.50  6.10  6.2087
105.48           6.75  5.72         5.50  5.80  6.50  5.90
105.49       43  5.60  5.73   5.70  5.80  5.90  5.45  6.00  6.0622
105.50           6.65  5.68         5.40  5.70  6.50  5.85
105.51       44  5.55  5.69   5.60  5.65  5.80  5.40  5.90  5.9048
105.52           6.55  5.64         5.30  5.60  6.50  5.80
105.53       45  5.50  5.65   5.50  5.50  5.70  5.35  5.80  5.7500
105.54           6.45  5.60         5.20  5.50  6.50  5.75
105.55       46  5.45  5.62   5.45  5.45  5.60  5.30  5.70  5.6940
105.56           6.35  5.56         5.10  5.40  6.40  5.70
105.57       47  5.40  5.59   5.40  5.40  5.50  5.25  5.65  5.6375
105.58           6.25  5.52         5.00  5.30  6.30
105.59       48  5.35  5.56   5.35  5.35  5.45  5.20  5.60  5.5822
105.60           6.15  5.48         5.00  5.20  6.20
105.61       49  5.30  5.53   5.30  5.30  5.40  5.15  5.55  5.5404
105.62           6.05  5.44         5.00  5.10  6.10
105.63       50  5.25  5.50   5.25  5.25  5.35  5.10  5.50  5.5000
105.64           5.95  5.40         5.00  5.00  6.00
105.65       51  5.20  5.45   5.25  5.20  5.30  5.05  5.45  5.4384
105.66           5.85  5.36         5.00  5.00  5.90
105.67       52  5.15  5.40   5.25  5.15  5.25  5.00  5.40  5.3776
105.68           5.75  5.32         5.00  5.00  5.80
105.69       53  5.10  5.35   5.25  5.10  5.25  5.00  5.35  5.3167
105.70           5.65  5.28         5.00  5.00  5.70
105.71       54  5.05  5.30   5.25  5.05  5.25  5.00  5.30  5.2826
106.1            5.55  5.24         5.00  5.00  5.60
106.2        55  5.00  5.25   5.25  5.00  5.25  5.00  5.25  5.2500 
106.3            5.45  5.20               5.00  5.50
106.4        56  5.00  5.20   5.25  5.00  5.25  5.00  5.25  5.2500
106.5            5.35  5.16               5.00  5.40  5.20
106.6        57  5.00  5.15   5.25  5.00  5.25  5.00  5.25  5.2500
106.7            5.25  5.12               5.00  5.30  5.15
106.8        58  5.00  5.10   5.25  5.00  5.25  5.00  5.25  5.2500
106.9        59  5.00  5.05   5.25  5.00  5.25  5.00  5.25  5.2500
106.10           5.25  5.04         5.20  5.00  5.10  5.05
106.11       60  5.00  5.00   5.25  5.00  5.25  5.00  5.25  5.2500
106.12           5.25               5.30  5.00        5.00
106.13       61  5.00  5.00   5.25  5.00  5.25  5.00  5.25  5.2500
106.14           5.25               5.40  5.00        5.00
106.15       62  5.00  5.00   5.25  5.00  5.25  5.00  5.25  5.2500
106.16           5.25               5.50  5.00        5.00
106.17       63  5.00  5.00   5.25  5.00  5.25  5.00  5.25  5.2500
106.18           5.25               5.60  5.00        5.00
106.19       64  5.00  5.00   5.25  5.00  5.25  5.00  5.25  5.2500
106.20           5.25               5.70  5.00        5.00
106.21       65  5.00  5.00   5.25  5.00  5.25  5.00  5.25  5.2500
106.22           5.25               5.70  5.00        5.00
106.23       66  5.00  5.00   5.25  5.00  5.25  5.00  5.25  5.2500
106.24           5.25               5.70  5.00        5.00
106.25       67  5.00  5.00   5.25  5.00  5.25  5.00  5.25  5.2500
106.26           5.25               5.70  5.00        5.00
106.27       68  5.00  5.00   5.25  5.00  5.25  5.00  5.25  5.2500
106.28           5.25               5.70  5.00        5.00
106.29       69  5.00  5.00   5.25  5.00  5.25  5.00  5.25  5.2500
106.30           5.25               5.70  5.00        5.00
106.31       70  5.00  5.00   5.25  5.00  5.25  5.00  5.25  5.2500
106.32           5.25               5.70  5.00        5.00
106.33       71  5.00  5.00         5.00
106.34           5.25               5.70
106.35     (c) The actuarial valuation must use the applicable 
106.36  following payroll growth assumption for calculating the 
106.37  amortization requirement for the unfunded actuarial accrued 
106.38  liability where the amortization retirement is calculated as a 
106.39  level percentage of an increasing payroll: 
106.40                                                   payroll growth
106.41                    plan                             assumption 
106.42       general state employees retirement plan          5.00% 
106.43       correctional state employees retirement plan     5.00 
106.44       state patrol retirement plan                     5.00 
106.45       legislators retirement plan                      5.00 
106.46       elective state officers retirement plan          5.00 
106.47       judges retirement plan                           5.00 
106.48       general public employees retirement plan         6.00 
106.49       public employees police and fire 
106.50           retirement plan                              6.00 
106.51       local government correctional service 
106.52           retirement plan                              6.00 
106.53       teachers retirement plan                         5.00 
106.54       Duluth teachers retirement plan                  5.00 
106.55       Minneapolis teachers retirement plan             5.00 
106.56       St. Paul teachers retirement plan                5.00 
106.58     Subd. 4e 9.  [OTHER ASSUMPTIONS.] The actuarial valuation 
106.59  must use assumptions concerning mortality, disability, 
106.60  retirement, withdrawal, retirement age, and any other relevant 
106.61  demographic or economic factor.  These assumptions must be set 
107.1   at levels consistent with those determined in the most recent 
107.2   quadrennial experience study completed under subdivision 5, if 
107.3   required, or representative of the best estimate of future 
107.4   experience, if a quadrennial experience study is not required.  
107.5   The actuarial valuation must contain an exhibit indicating any 
107.6   actuarial assumptions used in preparing the valuation report. 
107.7      Subd. 4f 10.  [PUBLIC SECTOR ACCOUNTING DISCLOSURE 
107.8   INFORMATION.] The actuarial valuation must contain those 
107.9   actuarial calculations that are necessary to allow the 
107.10  retirement plan administration or participating employing units 
107.11  to prepare the pension-related portions of annual financial 
107.12  reporting that meet generally accepted accounting principles for 
107.13  the public sector.  
107.14     Subd. 4g 11.  [AMORTIZATION CONTRIBUTIONS.] (a) In addition 
107.15  to the exhibit indicating the level normal cost, the actuarial 
107.16  valuation must contain an exhibit indicating the additional 
107.17  annual contribution sufficient to amortize the unfunded 
107.18  actuarial accrued liability.  For funds governed by chapters 3A, 
107.19  352, 352B, 352C, 353, 354, 354A, and 490, the additional 
107.20  contribution must be calculated on a level percentage of covered 
107.21  payroll basis by the established date for full funding in effect 
107.22  when the valuation is prepared.  For funds governed by chapter 
107.23  3A, sections 352.90 through 352.951, chapters 352B, 352C, 
107.24  sections 353.63 through 353.68, and chapters 353C, 354A, and 
107.25  490, the level percent additional contribution must be 
107.26  calculated assuming annual payroll growth of 6.5 percent.  For 
107.27  funds governed by sections 352.01 through 352.86 and chapter 
107.28  354, the level percent additional contribution must be 
107.29  calculated assuming an annual payroll growth of five percent.  
107.30  For the fund governed by sections 353.01 through 353.46, the 
107.31  level percent additional contribution must be calculated 
107.32  assuming an annual payroll growth of six percent.  For all other 
107.33  funds, the additional annual contribution must be calculated on 
107.34  a level annual dollar amount basis. 
107.35     (b) For any fund other than the Minneapolis employees 
107.36  retirement fund and the public employees retirement association 
108.1   general plan, if there has not been a change in the actuarial 
108.2   assumptions used for calculating the actuarial accrued liability 
108.3   of the fund, a change in the benefit plan governing annuities 
108.4   and benefits payable from the fund, a change in the actuarial 
108.5   cost method used in calculating the actuarial accrued liability 
108.6   of all or a portion of the fund, or a combination of the three, 
108.7   which change or changes by itself or by themselves without 
108.8   inclusion of any other items of increase or decrease produce a 
108.9   net increase in the unfunded actuarial accrued liability of the 
108.10  fund, the established date for full funding is the first 
108.11  actuarial valuation date occurring after June 1, 2020.  
108.12     (c) For any fund or plan other than the Minneapolis 
108.13  employees retirement fund and the public employees retirement 
108.14  association general plan, if there has been a change in any or 
108.15  all of the actuarial assumptions used for calculating the 
108.16  actuarial accrued liability of the fund, a change in the benefit 
108.17  plan governing annuities and benefits payable from the fund, a 
108.18  change in the actuarial cost method used in calculating the 
108.19  actuarial accrued liability of all or a portion of the fund, or 
108.20  a combination of the three, and the change or changes, by itself 
108.21  or by themselves and without inclusion of any other items of 
108.22  increase or decrease, produce a net increase in the unfunded 
108.23  actuarial accrued liability in the fund, the established date 
108.24  for full funding must be determined using the following 
108.25  procedure:  
108.26     (i) the unfunded actuarial accrued liability of the fund 
108.27  must be determined in accordance with the plan provisions 
108.28  governing annuities and retirement benefits and the actuarial 
108.29  assumptions in effect before an applicable change; 
108.30     (ii) the level annual dollar contribution or level 
108.31  percentage, whichever is applicable, needed to amortize the 
108.32  unfunded actuarial accrued liability amount determined under 
108.33  item (i) by the established date for full funding in effect 
108.34  before the change must be calculated using the interest 
108.35  assumption specified in subdivision 4d 8 in effect before the 
108.36  change; 
109.1      (iii) the unfunded actuarial accrued liability of the fund 
109.2   must be determined in accordance with any new plan provisions 
109.3   governing annuities and benefits payable from the fund and any 
109.4   new actuarial assumptions and the remaining plan provisions 
109.5   governing annuities and benefits payable from the fund and 
109.6   actuarial assumptions in effect before the change; 
109.7      (iv) the level annual dollar contribution or level 
109.8   percentage, whichever is applicable, needed to amortize the 
109.9   difference between the unfunded actuarial accrued liability 
109.10  amount calculated under item (i) and the unfunded actuarial 
109.11  accrued liability amount calculated under item (iii) over a 
109.12  period of 30 years from the end of the plan year in which the 
109.13  applicable change is effective must be calculated using the 
109.14  applicable interest assumption specified in subdivision 4d 8 in 
109.15  effect after any applicable change; 
109.16     (v) the level annual dollar or level percentage 
109.17  amortization contribution under item (iv) must be added to the 
109.18  level annual dollar amortization contribution or level 
109.19  percentage calculated under item (ii); 
109.20     (vi) the period in which the unfunded actuarial accrued 
109.21  liability amount determined in item (iii) is amortized by the 
109.22  total level annual dollar or level percentage amortization 
109.23  contribution computed under item (v) must be calculated using 
109.24  the interest assumption specified in subdivision 4d 8 in effect 
109.25  after any applicable change, rounded to the nearest integral 
109.26  number of years, but not to exceed 30 years from the end of the 
109.27  plan year in which the determination of the established date for 
109.28  full funding using the procedure set forth in this clause is 
109.29  made and not to be less than the period of years beginning in 
109.30  the plan year in which the determination of the established date 
109.31  for full funding using the procedure set forth in this clause is 
109.32  made and ending by the date for full funding in effect before 
109.33  the change; and 
109.34     (vii) the period determined under item (vi) must be added 
109.35  to the date as of which the actuarial valuation was prepared and 
109.36  the date obtained is the new established date for full funding.  
110.1      (d) For the Minneapolis employees retirement fund, the 
110.2   established date for full funding is June 30, 2020. 
110.3      (e) For the general employees retirement plan of the public 
110.4   employees retirement association general plan, the established 
110.5   date for full funding is June 30, 2031. 
110.6      (f) For the retirement plans for which the annual actuarial 
110.7   valuation indicates an excess of valuation assets over the 
110.8   actuarial accrued liability, the valuation assets in excess of 
110.9   the actuarial accrued liability must be recognized as a 
110.10  reduction in the current contribution requirements by an amount 
110.11  equal to the amortization of the excess expressed as a level 
110.12  percentage of pay over a 30-year period beginning anew with each 
110.13  annual actuarial valuation of the plan. 
110.14     Subd. 4h 12.  [ACTUARIAL GAINS AND LOSSES.] The actuarial 
110.15  valuation must contain an exhibit consisting of an analysis by 
110.16  the actuary explaining the net increase or decrease in the 
110.17  unfunded actuarial accrued liability since the last valuation.  
110.18  The explanation must subdivide the net increase or decrease in 
110.19  the unfunded actuarial accrued liability into at least the 
110.20  following parts: 
110.21     (a) (1) increases or decreases in the unfunded actuarial 
110.22  accrued liability because of changes in benefits; 
110.23     (b) (2) increases and decreases in the unfunded actuarial 
110.24  accrued liability because of changes in actuarial assumptions; 
110.25     (c) (3) increases or decreases in the unfunded actuarial 
110.26  accrued liability attributable to actuarial gains or losses 
110.27  resulting from any experience deviations from the assumptions on 
110.28  which the valuation is based, as follows: 
110.29     (i) actual investment earnings; 
110.30     (ii) actual postretirement mortality rates; 
110.31     (iii) actual salary increase rates; and 
110.32     (iv) the remainder of the increase or decrease not 
110.33  attributable to any separate source; 
110.34     (d) (4) increases or decreases in unfunded actuarial 
110.35  accrued liability because of other reasons, including the effect 
110.36  of any amortization contribution paid or additional amortization 
111.1   contribution previously calculated but unpaid; and 
111.2      (e) (5) increases or decreases in unfunded actuarial 
111.3   accrued liability because of changes in eligibility requirements 
111.4   or groups included in the membership of the fund. 
111.5      Subd. 4i 13.  [MEMBERSHIP TABULATION.] (a) The actuarial 
111.6   valuation must contain a tabulation of active membership and 
111.7   annuitants in the fund.  If the membership of a fund is under 
111.8   more than one general benefit program, a separate tabulation 
111.9   must be made for each general benefit program.  
111.10     (b) The tabulations must be prepared by the administration 
111.11  of the pension fund and must contain the following information: 
111.12  (1) Active members                               Number 
111.13       As of last valuation date
111.14                 New entrants
111.15             Total 
111.16       Separations from active service
111.17       Refund of contributions
111.18       Separation with deferred annuity
111.19       Separation with neither refund
111.20            nor deferred annuity
111.21       Disability
111.22       Death
111.23       Retirement with service annuity
111.24       Total separations
111.25       As of current valuation date                            
111.26  (2) Annuitants                                   Number          
111.27       As of last valuation date
111.28       New entrants
111.29       Total
111.30       Terminations
111.31       Deaths
111.32       Other
111.33       Total terminations
111.34       As of current valuation date
111.35     (c) The tabulation required under paragraph (b), clause 
111.36  (2), must be made separately for each of the following classes 
112.1   of benefit recipients: 
112.2      (1) service retirement annuitants; 
112.3      (2) disability benefit recipients; 
112.4      (3) survivor benefit recipients; and 
112.5      (4) deferred annuitants. 
112.6      Subd. 4j 14.  [ADMINISTRATIVE EXPENSES.] (a) The actuarial 
112.7   valuation must indicate the administrative expenses of the fund, 
112.8   expressed both in dollars and as a percentage of covered payroll.
112.9      (b) Administrative expenses are the costs incurred by the 
112.10  retirement plans in the course of operating the plan, excluding 
112.11  investment expenses.  Investment expenses include all expenses 
112.12  incurred for the retention of professional external investment 
112.13  managers and professional investment consultants, custodian bank 
112.14  fees, investment transaction costs, and the costs incurred by 
112.15  the retirement plans to manage investment portfolios or assets 
112.16  internally.  Investment expenses must be deducted from the 
112.17  investment return used in the actuarial valuation, and must not 
112.18  be included in administrative expenses when calculating the 
112.19  allowance for expenses. 
112.20     Subd. 4k 15.  [BENEFIT PLAN SUMMARY.] The actuarial 
112.21  valuation must contain a summary of the principal provisions of 
112.22  the benefit plan upon which the valuation is based. 
112.23     Subd. 5 16.  [QUADRENNIAL EXPERIENCE STUDY; CONTENTS.] A 
112.24  quadrennial experience study, if required, must contain an 
112.25  actuarial analysis by the approved actuary of the experience of 
112.26  the fund and a comparison of the experience with the actuarial 
112.27  assumptions on which the most recent actuarial valuation of the 
112.28  retirement fund was based. 
112.29     Subd. 6 17.  [ACTUARIAL SERVICES BY APPROVED ACTUARIES.] 
112.30  (a) The actuarial valuation or quadrennial experience study must 
112.31  be made and any actuarial consulting services for a retirement 
112.32  fund or plan must be provided by an approved actuary.  The 
112.33  actuarial valuation or quadrennial experience study must include 
112.34  a signed written declaration that it has been prepared according 
112.35  to sections 356.20 to 356.23 and according to the most recent 
112.36  standards for actuarial work adopted by the legislative 
113.1   commission on pensions and retirement.  
113.2      (b) Actuarial valuations, or experience studies prepared by 
113.3   an approved actuary retained by a retirement fund or plan must 
113.4   be submitted to the legislative commission on pensions and 
113.5   retirement within ten days of the submission of the document to 
113.6   the retirement fund or plan. 
113.7      Subd. 7 18.  [ESTABLISHMENT OF ACTUARIAL ASSUMPTIONS.] (a) 
113.8   The actuarial assumptions used for the preparation of actuarial 
113.9   valuations under this section that are other than those set 
113.10  forth in this section may be changed only with the approval of 
113.11  the legislative commission on pensions and retirement.  
113.12     (b) A change in the applicable actuarial assumptions may be 
113.13  proposed by the governing board of the applicable pension fund 
113.14  or relief association, by the actuary retained by the 
113.15  legislative commission on pensions and retirement, by the 
113.16  actuarial advisor to a pension fund governed by chapter 352, 
113.17  353, 354, or 354A, or by the actuary retained by a local police 
113.18  or firefighters relief association governed by sections 69.77 or 
113.19  69.771 to 69.776, if one is retained. 
113.20     Sec. 8.  Minnesota Statutes 2000, section 356.216, is 
113.21  amended to read: 
113.22     356.216 [CONTENTS OF ACTUARIAL VALUATIONS FOR LOCAL POLICE 
113.23  AND FIRE FUNDS.] 
113.24     (a) The provisions of section 356.215 governing that govern 
113.25  the contents of actuarial valuations shall must apply to any 
113.26  local police or fire pension fund or relief association required 
113.27  to make an actuarial report under this section, except as 
113.28  follows: 
113.29     (1) in calculating normal cost and other requirements, if 
113.30  required to be expressed as a level percentage of covered 
113.31  payroll, the salaries used in computing covered payroll shall 
113.32  must be the maximum rate of salary from on which retirement and 
113.33  survivorship credits and amounts of benefits are determined and 
113.34  from which any member contributions are calculated and deducted; 
113.35     (2) in lieu of the amortization date specified in section 
113.36  356.215, subdivision 4g 11, the appropriate amortization target 
114.1   date specified in section 69.77, subdivision 2b, or 69.773, 
114.2   subdivision 4, clause (c), shall must be used in calculating any 
114.3   required amortization contribution; 
114.4      (3) in addition to the tabulation of active members and 
114.5   annuitants provided for in section 356.215, subdivision 4i 13, 
114.6   the member contributions for active members for the calendar 
114.7   year and the prospective annual retirement annuities under the 
114.8   benefit plan for active members shall must be reported; 
114.9      (4) actuarial valuations required pursuant to under section 
114.10  69.773, subdivision 2, shall must be made at least every four 
114.11  years and actuarial valuations required pursuant to under 
114.12  section 69.77 shall be made annually; and 
114.13     (5) the actuarial balance sheet showing accrued assets 
114.14  valued at market value if the actuarial valuation is required to 
114.15  be prepared at least every four years or valued as current 
114.16  assets under section 356.215, subdivision 1, clause (6), or 
114.17  paragraph (b), whichever applies, if the actuarial valuation is 
114.18  required to be prepared annually, actuarial accrued liabilities, 
114.19  and the unfunded actuarial accrued liability shall must include 
114.20  the following required reserves: 
114.21       (a) (i) For active members 
114.22        1.  Retirement benefits 
114.23        2.  Disability benefits 
114.24        3.  Refund liability due to death or withdrawal 
114.25        4.  Survivors' benefits 
114.26       (b) (ii) For deferred annuitants' benefits 
114.27       (c) (iii) For former members without vested rights 
114.28       (d) (iv) For annuitants 
114.29        1.  Retirement annuities 
114.30        2.  Disability annuities 
114.31        3.  Surviving spouses' annuities 
114.32        4.  Surviving children's annuities 
114.33     In addition to those required reserves, separate items 
114.34  shall must be shown for additional benefits, if any, which may 
114.35  not be appropriately included in the reserves listed above.; and 
114.36     (6) actuarial valuations shall be are due by the first day 
115.1   of the seventh month after the end of the fiscal year which the 
115.2   actuarial valuation covers. 
115.3      (b) For a the Minneapolis firefighters relief association 
115.4   or the Minneapolis police relief association in a city of the 
115.5   first class with a population of more than 300,000, the 
115.6   following provisions additionally apply: 
115.7      (1) in calculating the actuarial balance sheet, unfunded 
115.8   actuarial accrued liability, and amortization contribution of 
115.9   the relief association, "current assets" means the value of all 
115.10  assets at cost, including realized capital gains and losses, 
115.11  plus or minus, whichever applies, the average value of total 
115.12  unrealized capital gains or losses for the most recent 
115.13  three-year period ending with the end of the plan year 
115.14  immediately preceding the actuarial valuation report 
115.15  transmission date; and 
115.16     (2) in calculating the applicable portions of the actuarial 
115.17  valuation, an annual preretirement interest assumption of six 
115.18  percent, an annual postretirement interest assumption of six 
115.19  percent, and an annual salary increase assumption of four 
115.20  percent must be used. 
115.21     Sec. 9.  Minnesota Statutes 2000, section 356.217, is 
115.22  amended to read: 
115.23     356.217 [MODIFICATIONS IN ACTUARIAL SERVICES.] 
115.24     (a) The cost of any requested benefit projections prepared 
115.25  by the commission-retained actuary relating to the Minnesota 
115.26  postretirement investment fund for at the request of the state 
115.27  board of investment is payable by the state board of investment. 
115.28     (b) Actuarial valuations under section 356.215, for July 1, 
115.29  1991, and thereafter, are not required to have an individual 
115.30  commentary section.  The commentary section, if omitted from the 
115.31  individual plan actuarial valuation valuations, must be included 
115.32  in an appropriate generalized format as part of the report to 
115.33  the legislature under section 3.85, subdivision 11. 
115.34     (c) Actuarial valuations under section 356.215, for July 1, 
115.35  1991, and thereafter, are not required to contain separate 
115.36  actuarial valuation results for basic and coordinated programs 
116.1   unless each program has a membership of at least ten percent of 
116.2   the total membership of the fund.  Actuarial valuations under 
116.3   section 356.215, for July 1, 1991, and thereafter, are not 
116.4   required to contain cash flow forecasts. 
116.5      (d) Actuarial valuations of the public employees police and 
116.6   fire fund local consolidation accounts for July 1, 1991, and 
116.7   thereafter, are not required to contain separate tabulations or 
116.8   summaries of active member, service retirement, disability 
116.9   retirement, and survivor data for each local consolidation 
116.10  account. 
116.11     (e) The commission-retained actuary is: 
116.12     (1) required to publish experience findings for those 
116.13  retirement plans for which experience findings are required only 
116.14  on a quadrennial basis for the four-year period ending June 30, 
116.15  1992, and every four years thereafter; 
116.16     (2) not required to prepare a separate experience analysis 
116.17  or publish separate experience findings for basic and 
116.18  coordinated programs if separate actuarial valuation results for 
116.19  the programs are not required; and 
116.20     (3) not required to calculate investment rate of return 
116.21  experience results on any basis other than current asset value 
116.22  as defined in section 356.215, subdivision 1, clause 
116.23  (6) paragraph (f). 
116.24     Sec. 10.  Minnesota Statutes 2000, section 356.219, is 
116.25  amended to read: 
116.26     356.219 [DISCLOSURE OF PUBLIC PENSION PLAN INVESTMENT 
116.27  PORTFOLIO AND PERFORMANCE INFORMATION.] 
116.28     Subdivision 1.  [REPORT REQUIRED.] (a) Except as indicated 
116.29  in subdivision 4, the state board of investment, on behalf of 
116.30  the public pension funds and programs for which it is the 
116.31  investment authority, and any Minnesota public pension plan that 
116.32  is not fully invested through the state board of investment, 
116.33  including a local police or firefighters' relief association 
116.34  governed by sections 69.77 or 69.771 to 69.775, shall report the 
116.35  information specified in subdivision 3 to the state auditor.  
116.36  The state auditor may prescribe a form or forms for the purposes 
117.1   of the reporting requirements contained in this section. 
117.2      (b) A local police or firefighters' relief association 
117.3   governed by section 69.77 or sections 69.771 to 69.775 is fully 
117.4   invested during a given calendar year for purposes of this 
117.5   section if all assets of the applicable pension plan beyond 
117.6   sufficient cash equivalent investments to cover six months 
117.7   expected expenses are invested under section 11A.17.  The board 
117.8   of any fully invested public pension plan remains responsible 
117.9   for submitting investment policy statements and subsequent 
117.10  revisions as required by subdivision 3, paragraph (a). 
117.11     (c) For purposes of this section, the state board of 
117.12  investment is considered to be the investment authority for any 
117.13  Minnesota public pension fund required to be invested by the 
117.14  state board of investment under section 11A.23, or for any 
117.15  Minnesota public pension fund authorized to invest in the 
117.16  supplemental investment fund under section 11A.17 and which is 
117.17  fully invested by the state board of investment. 
117.18     Subd. 2.  [ASSET CLASS DEFINITION.] (a) For purposes of 
117.19  this section, "asset class" means any of the following asset 
117.20  groupings as authorized in applicable law, bylaws, or articles 
117.21  of incorporation: 
117.22     (1) cash and any cash equivalent investments with 
117.23  maturities of one year or less when issued; 
117.24     (2) debt securities with maturities greater than one year 
117.25  when issued, including but not limited to mortgage participation 
117.26  certificates and pools, asset backed securities, guaranteed 
117.27  investment contracts, and authorized government and corporate 
117.28  obligations of corporations organized under laws of the United 
117.29  States or any state, or the Dominion of Canada or its provinces; 
117.30     (3) stocks or convertible issues of any corporation 
117.31  organized under laws of the United States or any state, or the 
117.32  Dominion of Canada or its provinces, or any corporation listed 
117.33  on the New York Stock Exchange or the American Stock Exchange; 
117.34     (4) international stocks or convertible issues; 
117.35     (5) international debt securities; and 
117.36     (6) real estate and venture capital. 
118.1      (b) If the pension plan is investing under section 69.77, 
118.2   subdivision 2g, section 69.775, or any other applicable law, in 
118.3   open-end investment companies registered under the federal 
118.4   Investment Company Act of 1940, or in the Minnesota supplemental 
118.5   investment fund under section 11A.17, this investment must be 
118.6   included under an asset class indicated in paragraph (a), 
118.7   clauses (1) through (6), as appropriate.  If the investment 
118.8   vehicle includes underlying securities from more than one asset 
118.9   class as indicated by paragraph (a), clauses (1) through (6), 
118.10  the investment may be treated as a separate asset class. 
118.11     Subd. 3.  [CONTENT OF REPORTS.] (a) The report required by 
118.12  subdivision 1 must include a written statement of the investment 
118.13  policy in effect on June 30, 1997, if that statement has not 
118.14  been previously submitted.  Following that date, subsequent 
118.15  reports must include investment policy changes and the effective 
118.16  date of each policy change rather than a complete statement of 
118.17  investment policy, unless the state auditor requests submission 
118.18  of a complete current statement.  The report must also include 
118.19  the information required by the following paragraphs, as 
118.20  applicable. 
118.21     (b) If a public pension plan has a total market value of 
118.22  $10,000,000 or more as of the beginning of the calendar year, 
118.23  the report required by subdivision 1 must include the market 
118.24  value of the total portfolio and the market value of each 
118.25  investment account, investment portfolio, or asset class 
118.26  included in the pension fund as of the beginning of the calendar 
118.27  year and for each month, and the amount and date of each 
118.28  injection and withdrawal to the total portfolio and to each 
118.29  investment account, investment portfolio, or asset class.  If a 
118.30  public pension plan once files a report under this paragraph, it 
118.31  must continue reporting under this paragraph for any subsequent 
118.32  year in which the public pension plan is not fully invested as 
118.33  specified in subdivision 1, paragraph (b), even if asset values 
118.34  drop below $10,000,000 in market value in a that subsequent year.
118.35     (c) For public pension plans to which paragraph (b) 
118.36  applies, the report required by subdivision 1 must also include 
119.1   a calculation of the total time-weighted rate of return 
119.2   available from index-matching investments assuming the asset 
119.3   class performance targets and target asset mix indicated in the 
119.4   written statement of investment policy.  The provided 
119.5   information must include a description of indices used in the 
119.6   analyses and an explanation of why those indices are 
119.7   appropriate.  This paragraph does not apply to any fully 
119.8   invested plan, as defined by subdivision 1, paragraph (b).  
119.9   Reporting by the state board of investment under this paragraph 
119.10  is limited to information on the Minnesota public pension plans 
119.11  required to be invested by the state board of investment under 
119.12  section 11A.23. 
119.13     (d) If a public pension plan has a total market value of 
119.14  less than $10,000,000 as of the beginning of the calendar year 
119.15  and was never required to file under paragraph (b), the report 
119.16  required by subdivision 1 must include the amount and date of 
119.17  each total portfolio injection and withdrawal.  In addition, the 
119.18  report must include the market value of the total portfolio as 
119.19  of the beginning of the calendar year and for each quarter. 
119.20     (e) Any public pension plan reporting under paragraph (b) 
119.21  or (d) may include computed time-weighted rates of return with 
119.22  the report, in addition to all other required information, as 
119.23  applicable.  If these returns are supplied, the individual who 
119.24  computed the returns must certify that the returns are net of 
119.25  all costs and fees, including investment management fees, and 
119.26  that the procedures used to compute the returns are consistent 
119.27  with bank administration institute studies of investment 
119.28  performance measurement and association of investment management 
119.29  and research presentation standards. 
119.30     (f) For public pension plans reporting under paragraph (d), 
119.31  the public pension plan must retain supporting information 
119.32  specifying the date and amount of each injection and withdrawal 
119.33  to each investment account and investment portfolio.  The public 
119.34  pension plan must also retain the market value of each 
119.35  investment account and investment portfolio at the beginning of 
119.36  the calendar year and for each quarter.  Information that is 
120.1   required to be collected and retained for any given year or 
120.2   years under this paragraph must be submitted to the office of 
120.3   the state auditor if the office of the state auditor requests in 
120.4   writing that the information be submitted by a public pension 
120.5   plan or plans, or be submitted by the state board of investment 
120.6   for any plan or plans for which the state board of investment is 
120.7   the investment authority under this section.  If the state 
120.8   auditor requests information under this subdivision, and the 
120.9   public plan fails to comply, the pension plan will be is subject 
120.10  to penalties under subdivision 5, unless penalties are waived by 
120.11  the state auditor under that subdivision. 
120.12     Subd. 4.  [ALTERNATIVE REPORTING; CERTAIN PLANS.] In lieu 
120.13  of requirements in subdivision 3, the applicable administration 
120.14  for the individual retirement account plans under chapters 354B 
120.15  and 354D and for the University of Minnesota faculty retirement 
120.16  plan shall submit computed time-weighted rates of return to the 
120.17  office of the state auditor.  These time-weighted rates of 
120.18  return must cover the most recent complete calendar year, and 
120.19  must be computed separately for each investment option available 
120.20  to plan members.  To the extent feasible, the returns must be 
120.21  computed net of all investment costs, fees, and charges, so that 
120.22  the computed return reflects the net time-weighted return 
120.23  available to the investor.  If this is not practical, the 
120.24  existence of any remaining investment cost, fee, or charge which 
120.25  could further lower the net return must be disclosed.  The 
120.26  procedures used to compute the returns must be consistent with 
120.27  bank administration institute studies of investment performance 
120.28  measurement and association of investment management and 
120.29  research presentation standards, or, if applicable, securities 
120.30  exchange commission requirements.  The individual who computes 
120.31  the returns must certify that the supplied returns comply with 
120.32  this subdivision.  The applicable plan administrator must also 
120.33  submit, with the return information, the total amounts invested 
120.34  by the plan members, in aggregate, in each investment option as 
120.35  of the last day of the calendar year. 
120.36     Subd. 5.  [PENALTY FOR NONCOMPLIANCE.] Failure to comply 
121.1   with the reporting requirements of this section shall must 
121.2   result in a withholding of all state aid or state appropriation 
121.3   to which the pension plan may otherwise be directly or 
121.4   indirectly entitled until the pension plan has complied with the 
121.5   reporting requirements.  The state auditor shall instruct the 
121.6   commissioners of revenue and finance to withhold any state aid 
121.7   or state appropriation from any pension plan that fails to 
121.8   comply with the reporting requirements contained in this 
121.9   section, until the pension plan has complied with the reporting 
121.10  requirements.  The state auditor may waive the withholding of 
121.11  state aid or state appropriations if the state auditor 
121.12  determines in writing that compliance would create an excessive 
121.13  hardship for the pension plan. 
121.14     Subd. 6.  [INVESTMENT DISCLOSURE REPORT.] (a) The state 
121.15  auditor shall prepare an annual report to the legislature on the 
121.16  investment performance of the various public pension plans 
121.17  subject to this section.  The content of the report is specified 
121.18  in paragraphs (b) to (e). 
121.19     (b) For each public pension plan reporting under 
121.20  subdivision 3, paragraph (b), the state auditor shall compute 
121.21  and report total portfolio and asset class time-weighted rates 
121.22  of return, net of all investment-related costs and fees. 
121.23     (c) For each public pension plan reporting under 
121.24  subdivision 3, paragraph (d), the state auditor shall compute 
121.25  and report total portfolio time-weighted rates of return, net of 
121.26  all costs and fees.  If the state auditor has requested data for 
121.27  a plan under subdivision 3, paragraph (f), the state auditor may 
121.28  also compute and report asset class time-weighted rates of 
121.29  return, net of all costs and fees. 
121.30     (d) The report by the state auditor must include the 
121.31  information submitted by the pension plans under subdivision 3, 
121.32  paragraph (c), or a synopsis of that information. 
121.33     (e) The report by the state auditor may also include a 
121.34  presentation of multiyear performance, information collected 
121.35  under subdivision 4, and any other information or analysis 
121.36  deemed appropriate by the state auditor.  
122.1      Subd. 7.  [EXPENSE OF REPORT.] All administrative expenses 
122.2   incurred relating to the investment report by the state auditor 
122.3   described in subdivision 6 must be borne by the office of the 
122.4   state auditor and may not be charged back to the entities 
122.5   described in subdivisions 1 or 4. 
122.6      Subd. 8.  [TIMING OF REPORTS.] (a) For salaried firefighter 
122.7   relief associations, police relief associations, and volunteer 
122.8   firefighter relief associations, the information required under 
122.9   this section must be submitted by the due date for reports 
122.10  required under section 69.051, subdivision 1 or 1a, as 
122.11  applicable.  If a relief association satisfies the definition of 
122.12  a fully invested plan under subdivision 1, paragraph (b), for 
122.13  the calendar year covered by the report required under section 
122.14  69.051, subdivision 1 or 1a, as applicable, the chief 
122.15  administrative officer of the covered pension plan shall certify 
122.16  that compliance on a form prescribed by the state auditor.  The 
122.17  state auditor shall transmit annually to the state board of 
122.18  investment a list or lists of covered pension plans which 
122.19  submitted certifications, in order to facilitate reporting by 
122.20  the state board of investment under paragraph (c) of this 
122.21  subdivision. 
122.22     (b) For the Minneapolis teachers retirement fund 
122.23  association, the St. Paul teachers retirement fund association, 
122.24  the Duluth teachers retirement fund association, the Minneapolis 
122.25  employees retirement fund, the University of Minnesota faculty 
122.26  supplemental retirement plan, and the applicable administrators 
122.27  for the University of Minnesota faculty retirement plan and the 
122.28  individual retirement account plans under chapters 354B and 
122.29  354D, the information required under this section must be 
122.30  submitted to the state auditor by June 1 of each year. 
122.31     (c) The state board of investment, on behalf of pension 
122.32  funds specified in subdivision 1, paragraph (c), must report 
122.33  information required under this section by September 1 of each 
122.34  year. 
122.35     Sec. 11.  Minnesota Statutes 2000, section 356.22, is 
122.36  amended to read: 
123.1      356.22 [INTERPRETATION.] 
123.2      Subdivision 1.  [PROVISION OF ADDITIONAL VALUATIONS.] No 
123.3   provision in sections 356.20 to 356.23 shall may be construed to 
123.4   in any way to limit any of the enumerated pension and retirement 
123.5   funds from furnishing additional actuarial valuations or 
123.6   experience studies, or additional data and actuarial 
123.7   calculations, as may be requested by the legislature or any 
123.8   standing committee or by the legislative commission on pensions 
123.9   and retirement. 
123.10     Subd. 2.  [ACCELERATED AMORTIZATION.] No provision in 
123.11  sections 356.20 to 356.23 shall may be construed to preclude any 
123.12  public pension and retirement fund enumerated in section 356.20, 
123.13  subdivision 2, from requesting, or the legislature from 
123.14  providing for, the amortization of any unfunded actuarial 
123.15  accrued liability in a shorter period of time than by the 
123.16  established date for full funding as determined pursuant to 
123.17  under section 356.215, subdivision 4g 11.  
123.18     Subd. 3.  [ADDITIONAL REQUIRED VALUATIONS.] The legislature 
123.19  or any committee or commission thereof now in existence or 
123.20  hereafter created which has assigned to it the subject of public 
123.21  pensions or public retirement plans may require actuarial 
123.22  valuations and experience studies in conformity with the 
123.23  provisions of sections 356.20 to 356.23 from any public pension 
123.24  and retirement plan or fund, whether enumerated in sections 
123.25  356.20 to 356.23 or otherwise.  
123.26     Sec. 12.  Minnesota Statutes 2000, section 356.23, is 
123.27  amended to read: 
123.28     356.23 [SUPPLEMENTAL VALUATIONS; ALTERNATIVE REPORTS AND 
123.29  VALUATIONS.] 
123.30     Subdivision 1.  [SUPPLEMENTAL ACTUARIAL VALUATIONS.] Any 
123.31  supplemental actuarial valuations prepared on behalf of any 
123.32  governing or managing board of any pension and retirement fund 
123.33  enumerated in section 356.20, subdivision 2, by an approved 
123.34  actuary, shall must be prepared in accordance with the 
123.35  applicable provisions of sections 356.20 to 356.23 and with the 
123.36  standards adopted by the legislative commission on pensions and 
124.1   retirement.  Any pension and retirement fund which prepares an 
124.2   alternative actuarial valuation under subdivision 2 shall also 
124.3   must have a supplemental actuarial valuation prepared.  
124.4      Subd. 2.  [ALTERNATIVE REPORTS AND VALUATIONS.] In addition 
124.5   to the financial reports and actuarial valuations required by 
124.6   sections 356.20 to 356.23, the governing or managing board of 
124.7   any fund concerned may submit alternative reports and actuarial 
124.8   valuations for distribution to the legislature, any of its 
124.9   committees, or the legislative commission on pensions and 
124.10  retirement on a different basis or on different assumptions than 
124.11  are specified in sections 356.20 to 356.23.  The assumptions and 
124.12  basis of any alternative reports and valuations shall must be 
124.13  clearly stated in the document.  
124.14                  LIMITATIONS ON SUPPLEMENTAL AND  
124.15                       LOCAL RETIREMENT PLANS  
124.16     Sec. 13.  Minnesota Statutes 2001 Supplement, section 
124.17  356.24, subdivision 1, is amended to read: 
124.18     Subdivision 1.  [RESTRICTION; EXCEPTIONS.] It is unlawful 
124.19  for a school district or other governmental subdivision or state 
124.20  agency to levy taxes for, or to contribute public funds to a 
124.21  supplemental pension or deferred compensation plan that is 
124.22  established, maintained, and operated in addition to a primary 
124.23  pension program for the benefit of the governmental subdivision 
124.24  employees other than: 
124.25     (1) to a supplemental pension plan that was established, 
124.26  maintained, and operated before May 6, 1971; 
124.27     (2) to a plan that provides solely for group health, 
124.28  hospital, disability, or death benefits; 
124.29     (3) to the individual retirement account plan established 
124.30  by chapter 354B; 
124.31     (4) to a plan that provides solely for severance pay under 
124.32  section 465.72 to a retiring or terminating employee; 
124.33     (5) for employees other than personnel employed by the 
124.34  board of trustees of the Minnesota state colleges and 
124.35  universities and covered under the higher education supplemental 
124.36  retirement plan under chapter 354C, if the supplemental plan 
125.1   coverage is provided for in a personnel policy of the public 
125.2   employer or in the collective bargaining agreement between the 
125.3   public employer and the exclusive representative of public 
125.4   employees in an appropriate unit, in an amount matching employee 
125.5   contributions on a dollar for dollar basis, but not to exceed an 
125.6   employer contribution of $2,000 a year per employee; 
125.7      (i) to the state of Minnesota deferred compensation plan 
125.8   under section 352.96; or 
125.9      (ii) in payment of the applicable portion of the 
125.10  contribution made to any investment eligible under section 
125.11  403(b) of the Internal Revenue Code, if the employing unit has 
125.12  complied with any applicable pension plan provisions of the 
125.13  Internal Revenue Code with respect to the tax-sheltered annuity 
125.14  program during the preceding calendar year; 
125.15     (6) for personnel employed by the board of trustees of the 
125.16  Minnesota state colleges and universities and not covered by 
125.17  clause (5), to the supplemental retirement plan under chapter 
125.18  354C, if the supplemental plan coverage is provided for in a 
125.19  personnel policy or in the collective bargaining agreement of 
125.20  the public employer with the exclusive representative of the 
125.21  covered employees in an appropriate unit, in an amount matching 
125.22  employee contributions on a dollar for dollar basis, but not to 
125.23  exceed an employer contribution of $2,700 a year for each 
125.24  employee; 
125.25     (7) to a supplemental plan or to a governmental trust to 
125.26  save for postretirement health care expenses qualified for 
125.27  tax-preferred treatment under the Internal Revenue Code, if the 
125.28  supplemental plan coverage is provided for in a personnel policy 
125.29  or in the collective bargaining agreement of a public employer 
125.30  with the exclusive representative of the covered employees in an 
125.31  appropriate unit; or 
125.32     (8) to the laborer's national industrial pension fund for 
125.33  the employees of a governmental subdivision who are covered by a 
125.34  collective bargaining agreement that provides for coverage by 
125.35  that fund and that sets forth a fund contribution rate, but not 
125.36  to exceed an employer contribution of $2,000 per year per 
126.1   employee; 
126.2      (9) to the plumbers' and pipefitters' national pension fund 
126.3   for the employees of a governmental subdivision who are covered 
126.4   by a collective bargaining agreement that provides for coverage 
126.5   by that fund and that sets forth a fund contribution rate, but 
126.6   not to exceed an employer contribution of $2,000 per year per 
126.7   employee; 
126.8      (10) to the international union of operating engineers 
126.9   pension fund for the employees of a governmental subdivision who 
126.10  are covered by a collective bargaining agreement that provides 
126.11  for coverage by that fund and that sets forth a fund 
126.12  contribution rate, but not to exceed an employer contribution of 
126.13  $2,000 per year per employee; or 
126.14     (11) to a supplemental plan organized and operated under 
126.15  the federal Internal Revenue Code, as amended, that is wholly 
126.16  and solely funded by the employee's accumulated sick leave, 
126.17  accumulated vacation leave, and accumulated severance pay. 
126.18     Sec. 14.  Minnesota Statutes 2000, section 356.24, 
126.19  subdivision 1b, is amended to read: 
126.20     Subd. 1b.  [VENDOR RESTRICTIONS.] A personnel policy for 
126.21  unrepresented employees or, a collective bargaining agreement 
126.22  for represented employees, or a school board for school district 
126.23  employees may establish limits on the number of vendors of plans 
126.24  covered by the exceptions set forth in subdivision 1 that it 
126.25  will utilize and conditions under which the those vendors may 
126.26  contact employees both during working hours and after working 
126.27  hours. 
126.28     Sec. 15.  Minnesota Statutes 2000, section 356.24, 
126.29  subdivision 1c, is amended to read: 
126.30     Subd. 1c.  [STATE BOARD OF INVESTMENT REVIEW.] (a) Any 
126.31  insurance company, mutual fund company, or similar company 
126.32  providing investments eligible under section 403(b) of the 
126.33  Internal Revenue Code and eligible to receive employer 
126.34  contributions under this section may request the state board of 
126.35  investment, in conjunction with the department of commerce, to 
126.36  review the financial standing of the company, the 
127.1   competitiveness of its investment options and returns, and the 
127.2   level of all charges and fees impacting those returns.  
127.3      (b) The state board of investment may establish a fee for 
127.4   each review.  The state board of investment must maintain and 
127.5   have available a list of all reviewed companies.  
127.6      (c) In reviewing companies under this section, the state 
127.7   board of investment must not be considered to be acting as a 
127.8   fiduciary or to be engaged in a fiduciary activity under chapter 
127.9   356A or common law. 
127.10     Sec. 16.  Minnesota Statutes 2000, section 356.24, 
127.11  subdivision 2, is amended to read: 
127.12     Subd. 2.  [LIMIT ON CERTAIN CONTRIBUTIONS OR BENEFIT 
127.13  CHANGES.] No change in benefits or employer contributions in a 
127.14  supplemental pension plan to which this section applies that 
127.15  occurs after May 6, 1971, is effective without prior legislative 
127.16  authorization. 
127.17     Sec. 17.  Minnesota Statutes 2000, section 356.245, is 
127.18  amended to read: 
127.19     356.245 [LOCAL ELECTED OFFICIALS.] 
127.20     An elected official who is covered by section 353.01, 
127.21  subdivision 2a, is eligible to participate in the state of 
127.22  Minnesota deferred compensation plan under section 356.24.  A 
127.23  The applicable local governmental unit may make the matching 
127.24  employer contributions authorized by that section on the part of 
127.25  a participating elected official. 
127.26     Sec. 18.  Minnesota Statutes 2000, section 356.25, is 
127.27  amended to read: 
127.28     356.25 [LOCAL GOVERNMENTAL PENSION FUND PROHIBITIONS; 
127.29  EXCLUSIONS.] 
127.30     Notwithstanding any other provision of law or charter to 
127.31  the contrary, no city, county, public agency or instrumentality, 
127.32  or other political subdivision shall, after August 1, 1975, is 
127.33  required or permitted to establish for any of its employees any 
127.34  a local pension plan or fund financed in whole or in part from 
127.35  public funds, other than a volunteer firefighter's relief 
127.36  association that is established pursuant to under chapter 424A 
128.1   and is governed by sections 69.771 to 69.776. 
128.2            PUBLIC RETIREMENT PLAN PORTABILITY MECHANISMS 
128.3      Sec. 19.  Minnesota Statutes 2000, section 356.30, is 
128.4   amended to read: 
128.5      356.30 [COMBINED SERVICE ANNUITY.] 
128.6      Subdivision 1.  [ELIGIBILITY; COMPUTATION OF ANNUITY.] (a) 
128.7   Notwithstanding any provisions of the laws governing the 
128.8   retirement plans enumerated in subdivision 3, a person who has 
128.9   met the qualifications of paragraph (b) may elect to receive a 
128.10  retirement annuity from each enumerated retirement plan in which 
128.11  the person has at least one-half year of allowable service, 
128.12  based on the allowable service in each plan, subject to the 
128.13  provisions of paragraph (c). 
128.14     (b) A person may receive, upon retirement, a retirement 
128.15  annuity from each enumerated retirement plan in which the person 
128.16  has at least one-half year of allowable service, and 
128.17  augmentation of a deferred annuity calculated under the laws 
128.18  governing each public pension plan or fund named in subdivision 
128.19  3, from the date the person terminated all public service if: 
128.20     (1) the person has allowable service totaling an amount 
128.21  that allows the person to receive an annuity in any two or more 
128.22  of the enumerated plans; and 
128.23     (2) the person has not begun to receive an annuity from any 
128.24  enumerated plan or the person has made application for benefits 
128.25  from each applicable plan and the effective dates of the 
128.26  retirement annuity with each plan under which the person chooses 
128.27  to receive an annuity are within a one-year period.  
128.28     (c) The retirement annuity from each plan must be based 
128.29  upon the allowable service, accrual rates, and average salary in 
128.30  the applicable plan except as further specified or modified in 
128.31  the following clauses:  
128.32     (1) the laws governing annuities must be the law in effect 
128.33  on the date of termination from the last period of public 
128.34  service under a covered retirement plan with which the person 
128.35  earned a minimum of one-half year of allowable service credit 
128.36  during that employment; 
129.1      (2) the "average salary" on which the annuity from each 
129.2   covered plan in which the employee has credit in a formula plan 
129.3   shall must be based on the employee's highest five successive 
129.4   years of covered salary during the entire service in covered 
129.5   plans; 
129.6      (3) the accrual rates to be used by each plan must be those 
129.7   percentages prescribed by each plan's formula as continued for 
129.8   the respective years of allowable service from one plan to the 
129.9   next, recognizing all previous allowable service with the other 
129.10  covered plans; 
129.11     (4) the allowable service in all the plans must be combined 
129.12  in determining eligibility for and the application of each 
129.13  plan's provisions in respect to reduction in the annuity amount 
129.14  for retirement prior to normal retirement age; and 
129.15     (5) the annuity amount payable for any allowable service 
129.16  under a nonformula plan of a covered plan must not be affected, 
129.17  but such service and covered salary must be used in the above 
129.18  calculation.  
129.19     (d) This section does not apply to any person whose final 
129.20  termination from the last public service under a covered plan is 
129.21  prior to was before May 1, 1975.  
129.22     (e) For the purpose of computing annuities under this 
129.23  section, the accrual rates used by any covered plan, except the 
129.24  public employees police and fire plan, the judges' retirement 
129.25  fund, and the state patrol retirement plan, must not exceed the 
129.26  percent specified in section 356.19 356.315, subdivision 4, per 
129.27  year of service for any year of service or fraction thereof.  
129.28  The formula percentage used by the judges' retirement fund must 
129.29  not exceed the percent percentage rate specified in section 
129.30  356.19 356.315, subdivision 8, per year of service for any year 
129.31  of service or fraction thereof.  The accrual rate used by the 
129.32  public employees police and fire plan and the state patrol 
129.33  retirement plan must not exceed the percent percentage rate 
129.34  specified in section 356.19 356.315, subdivision 6, per year of 
129.35  service for any year of service or fraction thereof.  The 
129.36  accrual rate or rates used by the legislators retirement plan 
130.1   and the elective state officers retirement plan must not exceed 
130.2   2.5 percent, but this limit does not apply to the adjustment 
130.3   provided under section 3A.02, subdivision 1, paragraph (c), or 
130.4   352C.031, paragraph (b). 
130.5      (f) Any period of time for which a person has credit in 
130.6   more than one of the covered plans must be used only once for 
130.7   the purpose of determining total allowable service.  
130.8      (g) If the period of duplicated service credit is more than 
130.9   one-half year, or the person has credit for more than one-half 
130.10  year, with each of the plans, each plan must apply its formula 
130.11  to a prorated service credit for the period of duplicated 
130.12  service based on a fraction of the salary on which deductions 
130.13  were paid to that fund for the period divided by the total 
130.14  salary on which deductions were paid to all plans for the period.
130.15     (h) If the period of duplicated service credit is less than 
130.16  one-half year, or when added to other service credit with that 
130.17  plan is less than one-half year, the service credit must be 
130.18  ignored and a refund of contributions made to the person in 
130.19  accord with that plan's refund provisions. 
130.20     Subd. 2.  [REPAYMENT OF REFUNDS.] A person who has service 
130.21  credit in one of the funds retirement plans enumerated in 
130.22  subdivision 3 and who is employed or was formerly employed in a 
130.23  position covered by one of these funds covered plans but also 
130.24  has received a refund from any other of these funds covered 
130.25  plans, may repay the refund to the respective fund plan under 
130.26  terms and conditions that are consistent with the laws governing 
130.27  the other fund plan, except that the person need not be a 
130.28  currently contributing member of the fund plan to which the 
130.29  refund is repaid at the time the repayment is made.  Unless 
130.30  otherwise provided by statute, the repayment of a refund under 
130.31  this subdivision may only be made within six months following 
130.32  termination of employment from a position covered by one of the 
130.33  funds covered plans enumerated in subdivision 3 or before the 
130.34  date of retirement from the fund plan to which the refund is 
130.35  repaid, whichever is earlier. 
130.36     Subd. 2a.  [PURCHASES OF PRIOR SERVICE.] If a purchase of 
131.1   prior service is made under the provisions of Laws 1988, chapter 
131.2   709, article 3, or any similar special or general law provision 
131.3   which allows a purchase of service credit in any of the funds 
131.4   retirement plans enumerated in subdivision 3, the amount of 
131.5   required reserves calculated as prescribed in Laws 1988, chapter 
131.6   709, article 3, must be paid to each fund plan based on the 
131.7   amount of benefit increase payable from that fund plan as a 
131.8   result of the purchase of prior service. 
131.9      Subd. 3.  [COVERED FUNDS PLANS.] This section applies to 
131.10  the following retirement funds plans: 
131.11     (1) the general state employees retirement fund plan of the 
131.12  Minnesota state retirement system, established pursuant to under 
131.13  chapter 352; 
131.14     (2) the correctional state employees retirement program 
131.15  plan of the Minnesota state retirement system, 
131.16  established pursuant to under chapter 352; 
131.17     (3) the unclassified employees retirement plan program, 
131.18  established pursuant to under chapter 352D; 
131.19     (4) the state patrol retirement fund plan, established 
131.20  pursuant to under chapter 352B; 
131.21     (5) the legislators retirement plan, established pursuant 
131.22  to under chapter 3A; 
131.23     (6) the elective state officers' retirement plan, 
131.24  established pursuant to under chapter 352C; 
131.25     (7) the general employees retirement plan of the public 
131.26  employees retirement association, established pursuant to under 
131.27  chapter 353; 
131.28     (8) the public employees police and fire fund retirement 
131.29  plan of the public employees retirement association, established 
131.30  pursuant to under chapter 353; 
131.31     (9) public employees the local government correctional 
131.32  service retirement plan of the public employees retirement 
131.33  association, established pursuant to under chapter 353E; 
131.34     (10) the teachers retirement association, established 
131.35  pursuant to under chapter 354; 
131.36     (11) the Minneapolis employees retirement fund, established 
132.1   pursuant to under chapter 422A; 
132.2      (12) the Minneapolis teachers retirement fund association, 
132.3   established pursuant to under chapter 354A; 
132.4      (13) the St. Paul teachers retirement fund association, 
132.5   established pursuant to under chapter 354A; 
132.6      (14) the Duluth teachers retirement fund association, 
132.7   established pursuant to under chapter 354A; and 
132.8      (15) the judges' retirement fund, established by sections 
132.9   490.121 to 490.132. 
132.10     Sec. 20.  Minnesota Statutes 2000, section 356.302, is 
132.11  amended to read: 
132.12     356.302 [DISABILITY BENEFIT WITH COMBINED SERVICE.] 
132.13     Subdivision 1.  [DEFINITIONS.] (a) The terms used in this 
132.14  section are defined in this subdivision. 
132.15     (b) "Average salary" means the highest average of covered 
132.16  salary for the appropriate period of credited service that is 
132.17  required for the calculation of a disability benefit by the 
132.18  covered retirement plan and that is drawn from any period of 
132.19  credited service and successive years of covered salary in a 
132.20  covered retirement plan. 
132.21     (c) "Covered retirement plan" or "plan" means a retirement 
132.22  plan listed in subdivision 7. 
132.23     (d) "Duty-related" means a disabling illness or injury that 
132.24  occurred while the person was actively engaged in employment 
132.25  duties or that arose out of the person's active employment 
132.26  duties. 
132.27     (e) "General employee retirement plan" means a covered 
132.28  retirement plan listed in subdivision 7, clauses (1) to (8) and 
132.29  (13). 
132.30     (f) "Occupationally disabled" means the condition of having 
132.31  a medically determinable physical or mental impairment that 
132.32  makes a person unable to satisfactorily perform the minimum 
132.33  requirements of the person's employment position or a 
132.34  substantially similar employment position. 
132.35     (g) "Public safety employee retirement plan" means a 
132.36  covered retirement plan listed in subdivision 7, clauses (9) to 
133.1   (11) (12). 
133.2      (h) "Totally and permanently disabled" means the condition 
133.3   of having a medically determinable physical or mental impairment 
133.4   that makes a person unable to engage in any substantial gainful 
133.5   activity and that is expected to continue or has continued for a 
133.6   period of at least one year or that is expected to result 
133.7   directly in the person's death. 
133.8      Subd. 2.  [ENTITLEMENT.] Notwithstanding any provision of 
133.9   law to the contrary governing any covered retirement plan, a 
133.10  member of a covered retirement plan may receive a combined 
133.11  service disability benefit from each covered retirement plan in 
133.12  which the person has credit for at least one-half year of 
133.13  allowable service if that person meets the applicable qualifying 
133.14  conditions.  Subdivision 3 applies to a member of a general 
133.15  employee retirement plan.  Subdivision 4 applies to a member of 
133.16  a public safety employee retirement plan.  Subdivision 5 applies 
133.17  to a member of a covered retirement plan with both general 
133.18  employee and public safety employee retirement plan service. 
133.19     Subd. 3.  [GENERAL EMPLOYEE PLAN ELIGIBILITY REQUIREMENTS.] 
133.20  A disabled member of a covered retirement plan who has credit 
133.21  for allowable service in a combination of general employee 
133.22  retirement plans is entitled to a combined service disability 
133.23  benefit if the member: 
133.24     (1) is less than 65 years of age on the date of the 
133.25  application for the disability benefit; 
133.26     (2) has become totally and permanently disabled; 
133.27     (3) has credit for allowable service in any combination of 
133.28  general employee retirement plans totaling at least three years; 
133.29     (4) has credit for at least one-half year of allowable 
133.30  service with the current general employee retirement plan before 
133.31  the commencement of the disability; 
133.32     (5) has at least three continuous years of allowable 
133.33  service credit by the general employee retirement plan or has at 
133.34  least a total of three years of allowable service credit by a 
133.35  combination of general employee retirement plans in a 72-month 
133.36  period during which no interruption of allowable service credit 
134.1   from a termination of employment exceeded 29 days; and 
134.2      (6) is was not receiving a retirement annuity or disability 
134.3   benefit from any covered general employee retirement plan at the 
134.4   time of the commencement of the disability.  
134.5      Subd. 4.  [PUBLIC SAFETY PLAN ELIGIBILITY REQUIREMENTS.] A 
134.6   disabled member of a covered retirement plan who has credit for 
134.7   allowable service in a combination of public safety employee 
134.8   retirement plans is entitled to a combined service disability 
134.9   benefit if the member: 
134.10     (1) has become occupationally disabled; 
134.11     (2) has credit for allowable service in any combination of 
134.12  public safety employee retirement plans totaling at least one 
134.13  year if the disability is duty-related or totaling at least 
134.14  three years if the disability is not duty-related; 
134.15     (3) has credit for at least one-half year of allowable 
134.16  service with the current public safety employee retirement plan 
134.17  before the commencement of the disability; and 
134.18     (4) is was not receiving a retirement annuity or disability 
134.19  benefit from any covered public safety employee retirement plan 
134.20  at the time of the commencement of the disability. 
134.21     Subd. 5.  [GENERAL AND PUBLIC SAFETY PLAN ELIGIBILITY 
134.22  REQUIREMENTS.] A disabled member of a covered retirement plan 
134.23  who has credit for allowable service in a combination of both a 
134.24  public safety employee retirement plans plan and general 
134.25  employee retirement plans plan must meet the qualifying 
134.26  requirements in subdivisions 3 and 4 to receive a combined 
134.27  service disability benefit from the applicable general employee 
134.28  and public safety employee retirement plans, except that the 
134.29  person need only be a member of a covered retirement plan at the 
134.30  time of the commencement of the disability and that the minimum 
134.31  allowable service requirements of subdivisions 3, clauses (3) 
134.32  and (5), and 4, clauses (3) and (4), may be met in any 
134.33  combination of covered retirement plans. 
134.34     Subd. 6.  [COMBINED SERVICE DISABILITY BENEFIT 
134.35  COMPUTATION.] (a) The combined service disability benefit from 
134.36  each covered retirement plan must be based on the allowable 
135.1   service in each retirement plan, except as specified in 
135.2   paragraphs (b) to (f). 
135.3      (b) The disability benefit must be governed by the law in 
135.4   effect for each covered retirement plan on the date of the 
135.5   commencement of the member's most recent qualifying disability 
135.6   as a member of a covered retirement plan. 
135.7      (c) All plans must base the disability benefit on the same 
135.8   average salary figure to the extent practicable. 
135.9      (d) If the method of the covered retirement plan used to 
135.10  compute a disability benefit varies based on the length of 
135.11  allowable service credit, the benefit accrual formula 
135.12  percentages used by the plan must recognize the allowable 
135.13  service credit in the plan as a continuation of any previous 
135.14  allowable service credit with other covered retirement plans. 
135.15     (e) If the covered retirement plan is a defined benefit or 
135.16  formula plan and the method used to compute a disability benefit 
135.17  does not vary based on the length of allowable service credit, 
135.18  the portion of the specified benefit amount from the plan must 
135.19  bear the same proportion to the total specified benefit amount 
135.20  as the allowable service credit in that plan bears to the total 
135.21  allowable service credit in all covered retirement plans.  If 
135.22  the covered retirement plan is a defined contribution or 
135.23  nonformula plan, the disability benefit amount for allowable 
135.24  service under the plan is not affected, but the service and the 
135.25  covered salary under the plan must be used as applicable in 
135.26  calculations by other covered retirement plans. 
135.27     (f) A period for which a person has allowable service 
135.28  credit in more than one covered retirement plan must be used 
135.29  only once in determining the total allowable service credit for 
135.30  calculating the combined service disability benefit, with any 
135.31  period of duplicated service credit handled under as provided in 
135.32  section 356.30, subdivision 1, clause (3), items (i) and 
135.33  (j) paragraphs (g) and (h). 
135.34     (g) If a person is entitled to a minimum benefit payable 
135.35  from one of the public pension plans named enumerated in section 
135.36  356.30, subdivision 3, the person may receive additional credit 
136.1   for only those years of service in another covered pension plan 
136.2   that, when added to the years of service in the pension plan 
136.3   that is paying the minimum benefit, exceed the years of service 
136.4   on which the minimum benefit is based. 
136.5      (h) A partially employed recipient of a disability benefit 
136.6   must have any current reemployment income plus the total 
136.7   disability payment payments from all plans listed enumerated in 
136.8   subdivision 7 added together, and then compared to their final 
136.9   salary rate as a public employee.  If current income plus the 
136.10  total disability payments exceed the final salary of the person 
136.11  at the time of retirement, then disability benefit payments from 
136.12  all the plans will must be reduced on a prorated basis relative 
136.13  to the years of service in each fund so that earnings plus 
136.14  benefit payments do not exceed their the final salary rate. 
136.15     Subd. 7.  [COVERED RETIREMENT PLANS.] This section applies 
136.16  to the following retirement plans: 
136.17     (1) the general state employees retirement fund plan of the 
136.18  Minnesota state retirement system, established by chapter 352; 
136.19     (2) the unclassified state employees retirement plan 
136.20  program of the Minnesota state retirement system, established by 
136.21  chapter 352D; 
136.22     (3) the general employees retirement plan of the public 
136.23  employees retirement association, established by chapter 353; 
136.24     (4) the teachers retirement association, established by 
136.25  chapter 354; 
136.26     (5) the Duluth teachers retirement fund association, 
136.27  established by chapter 354A; 
136.28     (6) the Minneapolis teachers retirement fund association, 
136.29  established by chapter 354A; 
136.30     (7) the St. Paul teachers retirement fund association, 
136.31  established by chapter 354A; 
136.32     (8) the Minneapolis employees retirement fund, established 
136.33  by chapter 422A; 
136.34     (9) the state correctional employees retirement plan of the 
136.35  Minnesota state retirement system, established by chapter 352; 
136.36     (10) the state patrol retirement fund plan, established by 
137.1   chapter 352B; 
137.2      (11) the public employees police and fire fund plan of the 
137.3   public employees retirement association, established by chapter 
137.4   353; 
137.5      (12) public employees the local government correctional 
137.6   service retirement plan of the public employees retirement 
137.7   association, established by chapter 353E; and 
137.8      (13) the judges' retirement fund plan, established by 
137.9   sections 490.121 to 490.132. 
137.10     Sec. 21.  Minnesota Statutes 2000, section 356.303, is 
137.11  amended to read: 
137.12     356.303 [SURVIVOR BENEFIT WITH COMBINED SERVICE.] 
137.13     Subdivision 1.  [DEFINITIONS.] (a) The terms used in this 
137.14  section are defined in this subdivision. 
137.15     (b) "Average salary" means the highest average of covered 
137.16  salary for the appropriate period of credited service that is 
137.17  required for the calculation of a survivor annuity or a survivor 
137.18  benefit, whichever applies, by the covered retirement plan and 
137.19  that is drawn from any period of credited service and covered 
137.20  salary in a covered retirement plan. 
137.21     (c) "Covered retirement plan" or "plan" means a retirement 
137.22  plan listed enumerated in subdivision 4. 
137.23     (d) "Deceased member" means a person who on the date of 
137.24  death was an active member of a covered retirement plan and who 
137.25  has reached the minimum age, if any, that is required by the 
137.26  covered retirement plan as part of qualifying for a survivor 
137.27  annuity or survivor benefit. 
137.28     (e) "Surviving child" means a child of a deceased member 
137.29  (1) who is unmarried,; (2) who has not reached age 18, or, if a 
137.30  full-time student, who has not reached a higher age as specified 
137.31  in by the applicable covered retirement plan,; and (3) if 
137.32  specified by that plan, who was actually dependent on the 
137.33  deceased member for a specified proportion of support before the 
137.34  deceased member's death.  "Surviving child" includes a natural 
137.35  child, an adopted child, or a child of a deceased member who is 
137.36  conceived during the member's lifetime and who is born after the 
138.1   member's death. 
138.2      (f) "Surviving spouse" means the legally married husband or 
138.3   wife, whichever applies, of the deceased member who was residing 
138.4   with the deceased member on the date of death and who, if 
138.5   specified by the applicable covered retirement plan, had been 
138.6   married to the deceased member for a specified period of time 
138.7   before the death of the deceased member. 
138.8      (g) "Survivor annuity" means the entitlement to a future 
138.9   amount payable to a survivor as the remainder interest of an 
138.10  optional annuity form implied by law as having been chosen by a 
138.11  deceased member before the date of death and effective on the 
138.12  date of death or provided automatically. 
138.13     (h) "Survivor benefit" means an entitlement to a future 
138.14  amount payable to a survivor that is not included in the 
138.15  definition of a survivor annuity. 
138.16     Subd. 2.  [ENTITLEMENT; ELIGIBILITY.] Notwithstanding 
138.17  any provision of law to the contrary governing a covered 
138.18  retirement plan, a person who is the survivor of a deceased 
138.19  member of a covered retirement plan may receive a combined 
138.20  service survivor benefit from each covered retirement plan in 
138.21  which the deceased member had credit for at least one-half year 
138.22  of allowable service if the deceased member: 
138.23     (1) had credit for sufficient allowable service in any 
138.24  combination of covered retirement plans to meet any minimum 
138.25  allowable service credit requirement of the covered retirement 
138.26  fund for qualification for a survivor benefit or annuity; 
138.27     (2) had credit for at least one-half year of allowable 
138.28  service with the most recent covered retirement plan before the 
138.29  date of death and was an active member of that covered 
138.30  retirement plan on the date of death; and 
138.31     (3) was not receiving a retirement annuity from any covered 
138.32  retirement plan on the date of death. 
138.33     Subd. 3.  [COMBINED SERVICE SURVIVOR BENEFIT COMPUTATION.] 
138.34  (a) The combined service survivor annuity or survivor benefit 
138.35  from each covered retirement plan must be based on the allowable 
138.36  service in each covered retirement plan, except as provided by 
139.1   paragraphs (b) to (f). 
139.2      (b) The survivor annuity or survivor benefit must be 
139.3   governed by the law in effect for each covered retirement plan 
139.4   on the date of the death of the deceased member. 
139.5      (c) All plans must base the survivor annuity or survivor 
139.6   benefit on the same average salary figure if the annuity or 
139.7   benefit is salary related. 
139.8      (d) If the method of the covered retirement plan used to 
139.9   compute a survivor benefit or annuity varies based on the length 
139.10  of allowable service credit, the benefit accrual formula 
139.11  percentages used by the plan must recognize the allowable 
139.12  service credit in the plan as a continuation of any previous 
139.13  allowable service credit with other covered retirement plans. 
139.14     (e) If the covered retirement plan is a defined benefit or 
139.15  formula plan and the method used to compute a survivor benefit 
139.16  or annuity does not vary based on the length of allowable 
139.17  service credit, the portion of the specified benefit or annuity 
139.18  amount from the covered retirement plan must bear the same 
139.19  proportion to the total specified benefit or annuity amount as 
139.20  the allowable service credit in that plan bears to the total 
139.21  allowable service credit in all covered retirement plans.  If 
139.22  the covered retirement plan is a defined contribution or 
139.23  nonformula plan, the survivor benefit amount for allowable 
139.24  service under the plan is not affected, but the service and 
139.25  covered salary under the plan must be used in calculations by 
139.26  other covered retirement plans. 
139.27     (f) A period for which a person has deceased member had 
139.28  allowable service credit in more than one covered retirement 
139.29  plan must be used only once in determining the total allowable 
139.30  service credit for calculating the combined service survivor 
139.31  annuity or survivor benefit.  A period of duplicated service 
139.32  credit must be handled as provided in section 356.30, 
139.33  subdivision 1, clause (3), items (i) and (j) paragraphs (g) and 
139.34  (h). 
139.35     (g) If a person is entitled to a minimum benefit payable 
139.36  from a public pension plan named in section 356.30, subdivision 
140.1   3, the person may receive additional credit for only those years 
140.2   of service in another covered pension plan that, when added to 
140.3   the years of service in the pension plan that is paying the 
140.4   minimum benefit, exceed the years of service on which the 
140.5   minimum benefit is based. 
140.6      Subd. 4.  [COVERED RETIREMENT PLANS.] This section applies 
140.7   to the following retirement plans: 
140.8      (1) the legislators retirement plan, established by chapter 
140.9   3A; 
140.10     (2) the general state employees retirement fund plan of the 
140.11  Minnesota state retirement system, established by chapter 352; 
140.12     (3) the correctional state employees retirement plan of the 
140.13  Minnesota state retirement system, established by chapter 352; 
140.14     (4) the state patrol retirement fund plan, established by 
140.15  chapter 352B; 
140.16     (5) the elective state officers retirement plan, 
140.17  established by chapter 352C; 
140.18     (6) the unclassified state employees retirement plan 
140.19  program, established by chapter 352D; 
140.20     (7) the general employees retirement plan of the public 
140.21  employees retirement association, established by chapter 353; 
140.22     (8) the public employees police and fire fund plan of the 
140.23  public employees retirement association, established by chapter 
140.24  353; 
140.25     (9) public employees the local government correctional 
140.26  service retirement plan of the public employees retirement 
140.27  association, established by chapter 353E; 
140.28     (10) the teachers retirement association, established by 
140.29  chapter 354; 
140.30     (11) the Duluth teachers retirement fund association, 
140.31  established by chapter 354A; 
140.32     (12) the Minneapolis teachers retirement fund association, 
140.33  established by chapter 354A; 
140.34     (13) the St. Paul teachers retirement fund association, 
140.35  established by chapter 354A; 
140.36     (14) the Minneapolis employees retirement fund, established 
141.1   by chapter 422A; and 
141.2      (15) the judges' retirement fund, established by sections 
141.3   490.121 to 490.132. 
141.4                         RETIREMENT ANNUITIES 
141.5      Sec. 22.  [356.315] [RETIREMENT BENEFIT FORMULA 
141.6   PERCENTAGES.] 
141.7      Subdivision 1.  [COORDINATED PLAN MEMBERS.] The applicable 
141.8   benefit accrual rate is 1.2 percent. 
141.9      Subd. 2.  [COORDINATED PLAN MEMBERS.] The applicable 
141.10  benefit accrual rate is 1.7 percent. 
141.11     Subd. 2a.  [COORDINATED MEMBERS.] The applicable benefit 
141.12  accrual rate is 2.0 percent. 
141.13     Subd. 3.  [BASIC PLAN MEMBERS.] The applicable benefit 
141.14  accrual rate is 2.2 percent. 
141.15     Subd. 4.  [BASIC PLAN MEMBERS.] The applicable benefit 
141.16  accrual rate is 2.7 percent. 
141.17     Subd. 5.  [CORRECTIONAL PLAN MEMBERS.] The applicable 
141.18  benefit accrual rate is 2.4 percent. 
141.19     Subd. 5a.  [LOCAL GOVERNMENT CORRECTIONAL SERVICE PLAN.] 
141.20  The applicable benefit accrual rate is 1.9 percent.  
141.21     Subd. 6.  [STATE TROOPERS PLAN AND POLICE AND FIRE PLAN 
141.22  MEMBERS.] The applicable benefit accrual rate is 3.0 percent. 
141.23     Subd. 7.  [JUDGES PLAN.] The applicable benefit accrual 
141.24  rate is 2.7 percent. 
141.25     Subd. 8.  [JUDGES PLAN.] The applicable benefit accrual 
141.26  rate is 3.2 percent. 
141.27     Subd. 9.  [FUTURE BENEFIT ACCRUAL RATE INCREASES.] After 
141.28  January 2, 1998, benefit accrual rate increases under this 
141.29  section must apply only to allowable service or formula service 
141.30  rendered after the effective date of the benefit accrual rate 
141.31  increase. 
141.32     Sec. 23.  Minnesota Statutes 2000, section 356.32, is 
141.33  amended to read: 
141.34     356.32 [PROPORTIONATE ANNUITY AT AGE 65.] 
141.35     Subdivision 1.  [PROPORTIONATE RETIREMENT ANNUITY.] (a) 
141.36  Notwithstanding any provision to the contrary of the laws 
142.1   governing any of the retirement funds referred to enumerated in 
142.2   subdivision 2, any person who is an active member of any 
142.3   applicable fund, who has credit for at least one year but less 
142.4   than ten years of allowable service in one or more of 
142.5   the applicable funds covered plans, and who terminates active 
142.6   service pursuant to under a mandatory retirement law or policy 
142.7   or at age 65 or older, or at the normal retirement age if this 
142.8   age is not age 65, for any reason shall be is entitled upon 
142.9   making written application on the form prescribed by executive 
142.10  director or executive secretary the chief administrative officer 
142.11  of the fund plan to a proportionate retirement annuity from each 
142.12  applicable fund covered plan in which the person has allowable 
142.13  service credit.  
142.14     (b) The proportionate annuity shall must be calculated 
142.15  under the applicable laws governing annuities based upon 
142.16  allowable service credit at the time of retirement and the 
142.17  person's average salary for the highest five successive years of 
142.18  allowable service or the average salary for the entire period of 
142.19  allowable service if less than five years.  
142.20     (c) Nothing in this section shall prevent prevents the 
142.21  imposition of the appropriate early retirement reduction of an 
142.22  annuity which commences prior to before the normal retirement 
142.23  age. 
142.24     Subd. 2.  [COVERED FUNDS RETIREMENT PLANS.] The provisions 
142.25  of this section shall apply to the following retirement 
142.26  funds plans: 
142.27     (1) the general state employees retirement fund plan of the 
142.28  Minnesota state retirement system, established pursuant to under 
142.29  chapter 352; 
142.30     (2) the correctional state employees retirement program 
142.31  plan of the Minnesota state retirement system, established 
142.32  pursuant to under chapter 352; 
142.33     (3) the state patrol retirement fund plan, 
142.34  established pursuant to under chapter 352B; 
142.35     (4) the general employees retirement plan of the public 
142.36  employees retirement fund association, established pursuant to 
143.1   under chapter 353; 
143.2      (5) the public employees police and fire fund plan of the 
143.3   public employees retirement association, established pursuant to 
143.4   under chapter 353; 
143.5      (6) the teachers retirement association, established 
143.6   pursuant to under chapter 354; 
143.7      (7) the Minneapolis employees retirement fund, established 
143.8   pursuant to under chapter 422A; 
143.9      (8) the Duluth teachers retirement fund association, 
143.10  established pursuant to under chapter 354A; 
143.11     (9) the Minneapolis teachers retirement fund association, 
143.12  established pursuant to under chapter 354A; and 
143.13     (10) the St. Paul teachers retirement fund association, 
143.14  established pursuant to under chapter 354A.  
143.15     Sec. 24.  Minnesota Statutes 2000, section 356.40, is 
143.16  amended to read: 
143.17     356.40 [DATE FOR PAYMENT OF ANNUITIES AND BENEFITS.] 
143.18     (a) Notwithstanding any law to the contrary, all annuities 
143.19  and benefits payable on and after December 1, 1977 by a covered 
143.20  retirement fund, as defined in section 356.30, subdivision 3, 
143.21  shall must be paid in advance for each month during the first 
143.22  week of that month.  The bylaws of municipal local retirement 
143.23  funds shall must be amended accordingly.  
143.24     (b) In no event, however, shall may this section authorize 
143.25  more than one payment in any one month where the law governing 
143.26  the applicable retirement fund as of June 30, 1977 already 
143.27  provides for the full payment or accrual of annuities and 
143.28  benefits in advance for each month or as of the first day of the 
143.29  month, nor shall it authorize the payment of both a retirement 
143.30  annuity and a surviving spouse's benefit in one month where the 
143.31  law governing the applicable retirement fund provides for the 
143.32  payment of the retired member's retirement annuity to the 
143.33  surviving spouse for the month in which the retired member dies. 
143.34     Sec. 25.  [356.403] [NORMAL RETIREMENT AGE; SAVINGS 
143.35  CLAUSE.] 
143.36     The intent of the legislature in sections 352.01, 
144.1   subdivision 25; 353.01, subdivision 37; 354.05, subdivision 38; 
144.2   and 354A.011, subdivision 15a, is to create a normal retirement 
144.3   age for persons first covered by those sections after May 16, 
144.4   1989, that is the same as the retirement age in the federal 
144.5   Social Security law, including future amendments to that law.  
144.6   If a court determines that the legislature may not incorporate 
144.7   by reference the future changes in federal Social Security law, 
144.8   the legislature reserves the right to amend the appropriate 
144.9   sections to make the normal retirement age conform to the 
144.10  retirement age in the federal Social Security law.  No person 
144.11  first covered by any of those sections after May 16, 1989, has a 
144.12  right to a normal retirement age that is less than the 
144.13  retirement age in the federal Social Security law. 
144.14     Sec. 26.  [356.405] [COMBINED PAYMENT OF RETIREMENT 
144.15  ANNUITIES.] 
144.16     (a) The public employees retirement association and the 
144.17  Minnesota state retirement system are permitted to combine 
144.18  payments to retirees.  The total payment must be equal to the 
144.19  amount that is payable if payments were kept separate.  The 
144.20  retiree must agree, in writing, to have the payment combined. 
144.21     (b) Each plan must calculate the benefit amounts under the 
144.22  laws governing the plan and the required reserves and future 
144.23  mortality losses or gains must be paid or accrued to the plan 
144.24  from which the service was earned.  Each plan must account for 
144.25  its portion of the payment separately, and there may be no 
144.26  additional actuarial liabilities realized by either plan. 
144.27     (c) The plan making the payment would be responsible for 
144.28  issuing one payment and making address changes, tax withholding 
144.29  changes, and other administrative functions needed to process 
144.30  the payment. 
144.31                         SURVIVOR BENEFITS 
144.32     Sec. 27.  [356.406] [LOSS OF ENTITLEMENT TO BENEFITS FOR 
144.33  SURVIVOR CAUSING DEATH OF PENSION PLAN MEMBER.] 
144.34     Subdivision 1.  [DEFINITIONS.] (a) Each of the words or 
144.35  terms defined in this subdivision has the meaning indicated. 
144.36     (b) "Public pension plan" means any retirement plan or fund 
145.1   enumerated in section 356.20, subdivision 2, or 356.30, 
145.2   subdivision 3, any relief association governed by section 69.77 
145.3   or sections 69.771 to 69.775, any retirement plan governed by 
145.4   chapter 354B or 354C, the Hennepin county supplemental 
145.5   retirement plan governed by sections 383B.46 to 383B.52, or any 
145.6   housing and redevelopment authority retirement plan. 
145.7      (c) "Public pension plan member" means a person who is a 
145.8   participant covered by a public pension plan; a former 
145.9   participant of a public pension plan who has sufficient service 
145.10  to be entitled to receive a future retirement annuity or service 
145.11  pension; a recipient of a retirement annuity, service pension, 
145.12  or disability benefit from a public pension plan; or a former 
145.13  participant of a public pension plan who has member or employee 
145.14  contributions to the person's credit in the public pension plan. 
145.15     (d) "Survivor" means the surviving spouse, a former spouse, 
145.16  a surviving child, a joint annuitant, a designated recipient of 
145.17  a second or remainder portion of an optional annuity form, a 
145.18  beneficiary, or the estate of a deceased public pension plan 
145.19  member, as those terms are commonly understood or defined in the 
145.20  benefit plan document of the public pension plan. 
145.21     (e) "Survivor benefit" means a surviving spouse benefit, 
145.22  surviving child benefit, second or remainder portion of an 
145.23  optional annuity form, death benefit, funeral benefit, or refund 
145.24  of member or employee contributions payable on account of the 
145.25  death of a public pension plan member as provided for in the 
145.26  benefit plan document of the public pension plan. 
145.27     Subd. 2.  [SUSPENSION OF SURVIVOR BENEFITS UPON FELONY 
145.28  CHARGE.] During the pendency of a charge of a survivor of a 
145.29  felony that caused the death of a public pension plan member, of 
145.30  criminal liability for a death by wrongful act felony, or of 
145.31  conspiracy to commit a death by wrongful act felony, the 
145.32  entitlement of that survivor to receive a survivor benefit is 
145.33  suspended. 
145.34     Subd. 3.  [FORFEITURE OF SURVIVOR BENEFITS UPON FELONY 
145.35  CONVICTION.] On final conviction of a survivor of a felony that 
145.36  caused the death of a public pension plan member, of criminal 
146.1   liability for a death by wrongful act felony, or of conspiracy 
146.2   to commit a death by wrongful act felony, the entitlement of 
146.3   that survivor to receive a survivor benefit is forfeited, 
146.4   including entitlement for any previously suspended survivor 
146.5   benefits under subdivision 2. 
146.6      Subd. 4.  [SUSPENSION OR FORFEITURE ACTIONS SEPARATE.] The 
146.7   charge of one survivor under subdivision 2 or the conviction of 
146.8   one survivor under subdivision 3 does not affect the entitlement 
146.9   of another survivor to a survivor benefit. 
146.10     Subd. 5.  [RECOVERY OF CERTAIN BENEFITS.] If monthly 
146.11  benefits or a refund of the balance of a participant or former 
146.12  participant's account have already been paid to an individual 
146.13  who is later charged or convicted as described under this 
146.14  section, the executive director or chief administrative officer 
146.15  of the public pension plan shall attempt to recover the amounts 
146.16  paid.  Payment may be made to the next beneficiary or survivor 
146.17  only in an amount equal to the amount recovered and in the 
146.18  amount of any future payments that would legally accrue to 
146.19  another survivor under the applicable laws of the retirement 
146.20  plan. 
146.21     Subd. 6.  [DISPOSITION OF FORFEITED SURVIVOR BENEFITS.] If 
146.22  the benefit plan document governing the public pension plan does 
146.23  not provide for the disposition of forfeited benefits, survivor 
146.24  benefits forfeited under this section must be deposited in the 
146.25  general fund of the state. 
146.26     Sec. 28.  [356.407] [RESTORATION OF SURVIVOR BENEFITS.] 
146.27     Subdivision 1.  [RESTORATION UPON TERMINATION OF 
146.28  REMARRIAGE.] Notwithstanding any provision to the contrary of 
146.29  the laws governing any of the retirement plans enumerated in 
146.30  subdivision 2, any person who was receiving a surviving spouse's 
146.31  benefit from any of those plans and whose benefit terminated 
146.32  solely because of remarriage is, if the remarriage terminates 
146.33  for any reason, again entitled upon reapplication to a surviving 
146.34  spouse's benefit; provided, however, that the person is not 
146.35  entitled to retroactive payments for the period of remarriage.  
146.36  The benefit resumes at the level which the person would have 
147.1   been receiving if there had been no remarriage.  This section 
147.2   applies prospectively to any person who first becomes entitled 
147.3   to receive a surviving spouse's benefit on or after May 18, 
147.4   1975, and also applies retroactively to any person who first 
147.5   became entitled to receive a surviving spouse's benefit before 
147.6   May 18, 1975; provided, however, that no person is entitled to 
147.7   retroactive payments for any period of time before May 18, 1975. 
147.8      Subd. 2.  [COVERED FUNDS.] The provisions of this section 
147.9   apply to the following retirement funds: 
147.10     (1) the general employees retirement plan of the public 
147.11  employees retirement association established under chapter 353; 
147.12     (2) the public employees police and fire plan of the public 
147.13  employees retirement association established under chapter 353; 
147.14     (3) the state patrol retirement plan established under 
147.15  chapter 352B; 
147.16     (4) the legislators retirement plan established under 
147.17  chapter 3A; 
147.18     (5) the elective state officers retirement plan established 
147.19  under chapter 352C; 
147.20     (6) the teachers retirement association established under 
147.21  chapter 354; and 
147.22     (7) the Minneapolis employees retirement fund established 
147.23  under chapter 422A.  
147.24                      POSTRETIREMENT INCREASES 
147.25     Sec. 29.  Minnesota Statutes 2000, section 356.41, is 
147.26  amended to read: 
147.27     356.41 [BENEFIT ADJUSTMENTS FOR CERTAIN DISABILITY AND 
147.28  SURVIVOR BENEFITS.] 
147.29     Disability benefits payable to a disabilitant, if not 
147.30  otherwise included in the participation in the Minnesota 
147.31  postretirement investment fund, and survivor benefits payable to 
147.32  a survivor from any public pension fund plan which participates 
147.33  in the Minnesota postretirement investment fund shall must be 
147.34  adjusted in the same manner, at the same times and in the same 
147.35  amounts as are benefits payable from the Minnesota 
147.36  postretirement investment fund to eligible benefit recipients of 
148.1   that public pension fund plan.  If a disability benefit is not 
148.2   included in the participation in the Minnesota postretirement 
148.3   investment fund, the disability benefit is recomputed as a 
148.4   retirement annuity and the recipient would have been eligible 
148.5   for an adjustment pursuant to under this section if the 
148.6   disability benefit was not recomputed, the recipient will 
148.7   continue to be remains eligible for the adjustment pursuant to 
148.8   under this section after the recomputation.  For the survivor of 
148.9   a deceased annuitant who receives a survivor benefit 
148.10  calculated pursuant to under a prior law rather than the second 
148.11  portion of a joint and survivor annuity, any period of receipt 
148.12  of a retirement annuity by the annuitant shall must be utilized 
148.13  in determining the period of receipt for eligibility to receive 
148.14  an adjustment pursuant to under this section.  No recipient 
148.15  shall, however, be is entitled to more than one adjustment 
148.16  pursuant to under this section or section 11A.18 applicable to 
148.17  one benefit at one time by reason of this section.  
148.18     Sec. 30.  [356.42] [POSTRETIREMENT ADJUSTMENT; LUMP SUM 
148.19  PAYMENTS.] 
148.20     Subdivision 1.  [ENTITLEMENT.] A person who is receiving a 
148.21  retirement annuity, a disability benefit, or a surviving 
148.22  spouse's annuity or benefit from a retirement fund specified in 
148.23  subdivision 3, clauses (1) to (8), is entitled to receive a 
148.24  postretirement adjustment from the applicable retirement fund in 
148.25  the amount specified in subdivision 2, if the annuity or benefit 
148.26  was computed under: 
148.27     (1) the laws in effect before June 1, 1973, if the person 
148.28  is receiving an annuity or benefit from the retirement fund 
148.29  specified in subdivision 3, clause (4); 
148.30     (2) the laws in effect before July 1, 1973, if the person 
148.31  is receiving an annuity or benefit from a retirement fund 
148.32  specified in subdivision 3, clause (1), (2), (3), or (5); 
148.33     (3) the metropolitan transit commission transit operating 
148.34  division employees retirement fund plan document in effect on or 
148.35  before December 31, 1977, if the person is receiving a 
148.36  retirement annuity, a disability benefit, or a surviving 
149.1   spouse's annuity or benefit from the retirement fund specified 
149.2   in subdivision 3, clause (5); 
149.3      (4) the laws in effect before May 1, 1974, and before any 
149.4   adjustment under Laws 1987, chapter 372, article 3, if the 
149.5   person is receiving an annuity or benefit from the retirement 
149.6   fund specified in subdivision 3, clause (6); 
149.7      (5) the laws in effect before January 1, 1970, if the 
149.8   person is receiving an annuity or benefit from the retirement 
149.9   fund specified in subdivision 3, clause (7); or 
149.10     (6) the laws in effect before June 30, 1971, if the person 
149.11  is receiving an annuity or benefit from the retirement fund 
149.12  specified in subdivision 3, clause (8). 
149.13     Subd. 2.  [AMOUNT OF POSTRETIREMENT ADJUSTMENT; PAYMENT.] 
149.14  (a) For any person receiving an annuity or benefit on November 
149.15  30, 1989, and entitled to receive a postretirement adjustment 
149.16  under subdivision 1, the postretirement adjustment is a lump-sum 
149.17  payment calculated under paragraph (b) or (c). 
149.18     (b) For coordinated plan annuity or benefit recipients, the 
149.19  postretirement adjustment in 1989 is $25 for each full year of 
149.20  allowable service credited to the person by the respective 
149.21  retirement fund.  In 1990 and each following year, the 
149.22  postretirement adjustment is the amount payable in the preceding 
149.23  year increased by the same percentage applied to regular 
149.24  annuities paid from the postretirement fund or, for the 
149.25  retirement funds specified in subdivision 3, clauses (6), (7), 
149.26  and (8), by the same percentage applied under the articles of 
149.27  incorporation and bylaws of these funds. 
149.28     (c) For basic plan annuity or benefit recipients, the 
149.29  postretirement adjustment in 1989 is the greater of: 
149.30     (1) $25 for each full year of allowable service credited to 
149.31  the person by the respective retirement fund; or 
149.32     (2) the difference between: 
149.33     (i) the product of $400 times the number of full years of 
149.34  allowable service credited to the person by the respective 
149.35  retirement fund; and 
149.36     (ii) the sum of the benefits payable to the person from any 
150.1   Minnesota public employee pension plan, and cash benefits 
150.2   payable to the person from the Social Security Administration. 
150.3      In 1990 and each following year, each eligible basic plan 
150.4   annuity or benefit recipient shall receive the amount received 
150.5   in the preceding year increased by the same percentage applied 
150.6   to regular annuities paid from the postretirement fund or, for 
150.7   the retirement funds specified in subdivision 3, clauses (6), 
150.8   (7), and (8), by the same percentage applied under the articles 
150.9   of incorporation and bylaws of these funds. 
150.10     (d) The postretirement adjustment provided for in this 
150.11  section must be paid on December 1 to those persons receiving an 
150.12  annuity or benefit on the preceding November 30.  This section 
150.13  does not authorize the payment of a postretirement adjustment to 
150.14  an estate if the annuity or benefit recipient dies before the 
150.15  November 30 eligibility date.  The postretirement adjustment 
150.16  provided for in this section must be paid automatically unless 
150.17  the intended recipient files a written notice with the 
150.18  retirement fund requesting that the postretirement adjustment 
150.19  not be paid or returns the amount of adjustment to the 
150.20  retirement fund.  Written notice of the waiver of the 
150.21  postretirement adjustment is irrevocable for the year during 
150.22  which it was made. 
150.23     Subd. 3.  [COVERED RETIREMENT PLANS.] The postretirement 
150.24  adjustment provided in this section applies to the following 
150.25  retirement funds: 
150.26     (1) the general employees retirement plans of the public 
150.27  employees retirement association; 
150.28     (2) the public employees police and fire plan of the public 
150.29  employees retirement association; 
150.30     (3) the teachers retirement association; 
150.31     (4) the state patrol retirement plan; 
150.32     (5) the state employees retirement plan of the Minnesota 
150.33  state retirement system; 
150.34     (6) the Minneapolis teachers retirement fund association 
150.35  established under chapter 354A; 
150.36     (7) the St. Paul teachers retirement fund association 
151.1   established under chapter 354A; and 
151.2      (8) the Duluth teachers retirement fund association 
151.3   established under chapter 354A. 
151.4      Sec. 31.  [356.43] [SUPPLEMENTAL BENEFIT; LUMP-SUM 
151.5   PAYMENTS; MINNEAPOLIS EMPLOYEES RETIREMENT FUND.] 
151.6      Subdivision 1.  [ENTITLEMENT.] Any person who is receiving 
151.7   either an annuity that was computed under the laws in effect 
151.8   before March 5, 1974, or a "$2 bill and annuity" annuity from 
151.9   the Minneapolis employees retirement fund is entitled to receive 
151.10  a supplemental benefit lump-sum payment from the retirement fund 
151.11  in the amount specified in subdivision 2.  
151.12     Subd. 2.  [AMOUNT OF PAYMENT.] (a) For any person receiving 
151.13  an annuity or benefit on November 30, 1991, and entitled to 
151.14  receive a supplemental benefit lump-sum payment under 
151.15  subdivision 1, the payment is $28 for each full year of 
151.16  allowable service credited to the person by the retirement fund. 
151.17     In 1992 and each following year, each eligible benefit 
151.18  recipient is entitled to receive the amount received in the 
151.19  preceding year increased by the same percentage applied on the 
151.20  most recent January 1 to regular annuities paid from the 
151.21  Minneapolis employees retirement fund. 
151.22     (b) The payment provided for in this section is payable on 
151.23  December 1, 1991, to those persons receiving an annuity or 
151.24  benefit on November 30, 1991.  In subsequent years, the payment 
151.25  must be made on December 1 to those persons receiving an annuity 
151.26  or benefit on the preceding November 30.  This section does not 
151.27  authorize payment to an estate if the annuity or benefit 
151.28  recipient dies before the November 30 eligibility date.  The 
151.29  payment provided for in this section must be paid automatically 
151.30  unless the intended recipient files a written notice with the 
151.31  retirement fund requesting that it not be paid. 
151.32     Subd. 3.  [STATE APPROPRIATION.] Payments under this 
151.33  section are the responsibility of the Minneapolis employees 
151.34  retirement fund.  A separate state aid is provided toward the 
151.35  level dollar amortized cost of the payments.  For state fiscal 
151.36  years 1992 to 2001 inclusive, there is appropriated annually 
152.1   $550,000 from the general fund to the commissioner of finance to 
152.2   be added, in quarterly installments, to the annual state 
152.3   contribution amount determined under section 422A.101, 
152.4   subdivision 3.  After fiscal year 2001, any difference between 
152.5   the cumulative benefit amounts actually paid under this section 
152.6   after fiscal year 1991 and the amounts paid to the retirement 
152.7   fund by the state under this subdivision, plus investment 
152.8   earnings on the aid, shall be included by the retirement fund 
152.9   board and the actuary retained by the legislative commission on 
152.10  pensions and retirement in determining the financial 
152.11  requirements of the fund and contributions under section 
152.12  422A.101. 
152.13     Sec. 32.  [356.431] [CONVERSION OF LUMP-SUM POSTRETIREMENT 
152.14  AND SUPPLEMENTAL PAYMENT TO AN INCREASED MONTHLY ANNUITY.] 
152.15     Subdivision 1.  [LUMP-SUM POSTRETIREMENT PAYMENT 
152.16  CONVERSION.] For benefits paid after December 31, 2001, to 
152.17  eligible persons under sections 356.42 and 356.43, the amount of 
152.18  the most recent lump-sum benefit payable to an eligible 
152.19  recipient under sections 356.86 and 356.865 must be divided by 
152.20  12.  The result must be added to the monthly annuity or benefit 
152.21  otherwise payable to an eligible recipient, must become a 
152.22  permanent part of the benefit recipient's pension, and must be 
152.23  included in any pension benefit subject to future increases. 
152.24     Subd. 2.  [TRANSFER OF REQUIRED RESERVES TO MINNESOTA 
152.25  POSTRETIREMENT INVESTMENT FUND.] Public employee retirement 
152.26  funds participating in the state board of investment 
152.27  postretirement investment fund shall transfer the required 
152.28  reserves for the postretirement conversion under subdivision 1 
152.29  to the postretirement investment fund by January 31, 2002. 
152.30                              REFUNDS 
152.31     Sec. 33.  [356.44] [PARTIAL PAYMENT OF PENSION PLAN 
152.32  REFUND.] 
152.33     (a) Notwithstanding any provision of law to the contrary, a 
152.34  member of a pension plan listed in section 356.30, subdivision 
152.35  3, with at least two years of forfeited service taken from a 
152.36  single pension plan, may repay a portion of all refunds.  A 
153.1   partial refund repayment must comply with this section. 
153.2      (b) The minimum portion of a refund repayment is one-third 
153.3   of the total service credit period of all refunds taken from a 
153.4   single plan.  
153.5      (c) The cost of the partial refund repayment is the product 
153.6   of the cost of the total repayment multiplied by the ratio of 
153.7   the restored service credit to the total forfeited service 
153.8   credit.  The total repayment amount includes interest at the 
153.9   annual rate of 8.5 percent, compounded annually, from the refund 
153.10  date to the date repayment is received.  
153.11     (d) The restored service credit must be allocated based on 
153.12  the relationship the restored service bears to the total service 
153.13  credit period for all refunds taken from a single pension plan. 
153.14     (e) This section does not authorize a public pension plan 
153.15  member to repay a refund if the law governing the plan does not 
153.16  authorize the repayment of a refund of member contributions. 
153.17     Sec. 34.  [356.441] [REPAYMENT OF REFUNDS.] 
153.18     Repayment of a refund and interest on that refund permitted 
153.19  under laws governing any public pension plan in Minnesota may be 
153.20  made with funds distributed from a plan qualified under the 
153.21  federal Internal Revenue Code of 1986, section 401(a), as 
153.22  amended through December 31, 1988, or an annuity qualified under 
153.23  the federal Internal Revenue Code of 1986, section 403(a).  
153.24  Repayment may also be made with funds distributed from an 
153.25  individual retirement account used solely to receive a 
153.26  nontaxable rollover from that type of a plan or annuity.  The 
153.27  repaid refund must be separately accounted for as member 
153.28  contributions not previously taxed.  Before accepting any 
153.29  transfers to which this section applies, the executive director 
153.30  must require the member to provide written documentation to 
153.31  demonstrate that the amounts to be transferred are eligible for 
153.32  a tax-free rollover and qualify for that treatment under the 
153.33  federal Internal Revenue Code of 1986.  
153.34                       OPTIONAL ANNUITY FORMS
153.35     Sec. 35.  [356.46] [APPLICATION FOR RETIREMENT ANNUITY; 
153.36  PROCEDURE FOR ELECTING ANNUITY FORM.] 
154.1      Subdivision 1.  [DEFINITIONS.] As used in this section, 
154.2   each of the following terms shall have the meaning given. 
154.3      (a) "Annuity form" means the payment procedure and duration 
154.4   of a retirement annuity or disability benefit available to a 
154.5   member of a public pension fund, based on the period over which 
154.6   a retirement annuity or disability benefit is payable, 
154.7   determined by the number of persons to whom the retirement 
154.8   annuity or disability benefit is payable, and the amount of the 
154.9   retirement annuity or disability benefit which is payable to 
154.10  each person. 
154.11     (b) "Joint and survivor optional annuity" means an optional 
154.12  annuity form which provides a retirement annuity or disability 
154.13  benefit to a retired member and the spouse of the member on a 
154.14  joint basis during the lifetime of the retired member and all or 
154.15  a portion of the original retirement annuity or disability 
154.16  benefit amount to the surviving spouse in the event of the death 
154.17  of the retired member. 
154.18     (c) "Optional annuity form" means an annuity form which is 
154.19  elected by a member and is not provided automatically as the 
154.20  standard annuity form of the public pension plan. 
154.21     (d) "Public pension plan" means a public pension plan as 
154.22  defined under section 356.615, paragraph (b). 
154.23     (e) "Retirement annuity" means a series of monthly payments 
154.24  to which a former or retired member of a public pension fund is 
154.25  entitled due to attaining a specified age and acquiring credit 
154.26  for a specified period of service, which includes a retirement 
154.27  annuity, retirement allowance, or service pension.  
154.28     (f) "Disability benefit" means a series of monthly payments 
154.29  to which a former or disabled member of a public pension fund is 
154.30  entitled due to a physical or mental inability to engage in 
154.31  specified employment. 
154.32     Subd. 2.  [PROVISION OF INFORMATION ON ANNUITY FORMS.] 
154.33  Every public pension plan which provides for an annuity form 
154.34  other than a single life retirement annuity as an option which 
154.35  can be elected by an active, disabled, or retiring member shall 
154.36  provide as a part of, or accompanying the annuity application 
155.1   form, a written statement summarizing the optional annuity forms 
155.2   which are available, a general indication of the consequences of 
155.3   selecting one annuity form over another, a calculation of the 
155.4   actuarial reduction in the amount of the retirement annuity 
155.5   which would be required for each optional annuity form, and the 
155.6   procedure to be followed to obtain more information from the 
155.7   public pension fund concerning the optional annuity forms 
155.8   provided by the plan. 
155.9      Subd. 3.  [REQUIREMENT OF NOTICE TO MEMBER'S SPOUSE.] (a) 
155.10  If a public pension plan provides optional retirement annuity 
155.11  forms which include a joint and survivor optional retirement 
155.12  annuity form potentially applicable to the surviving spouse of a 
155.13  member, the executive director of the public pension plan shall 
155.14  send a copy of the written statement, required by subdivision 2, 
155.15  to the spouse of the member before the member's election of an 
155.16  optional retirement annuity.  
155.17     (b) Following the election of a retirement annuity by the 
155.18  member, a copy of the completed retirement annuity application 
155.19  and retirement annuity beneficiary form, if applicable, must be 
155.20  sent by the public pension plan to the spouse of the retiring 
155.21  member.  A signed acknowledgment must be required from the 
155.22  spouse confirming receipt of a copy of the completed retirement 
155.23  annuity application and retirement annuity beneficiary form, 
155.24  unless the spouse's signature confirming the receipt is on the 
155.25  annuity application form.  If the required signed acknowledgment 
155.26  is not received from the spouse within 30 days, the public 
155.27  pension plan must send another copy of the completed retirement 
155.28  annuity application and retirement annuity beneficiary form, if 
155.29  applicable, to the spouse by certified mail with restricted 
155.30  delivery. 
155.31     Sec. 36.  [356.465] [SUPPLEMENTAL NEEDS TRUST AS OPTIONAL 
155.32  ANNUITY FORM RECIPIENT.] 
155.33     Subdivision 1.  [INCLUSION AS RECIPIENT.] Notwithstanding 
155.34  any provision to the contrary of the laws, articles of 
155.35  incorporation, or bylaws governing a covered retirement plan 
155.36  specified in subdivision 3, a retiring member may designate a 
156.1   qualified supplemental needs trust under subdivision 2 as the 
156.2   remainder recipient on an optional retirement annuity form for a 
156.3   period not to exceed the lifetime of the beneficiary of the 
156.4   supplemental needs trust. 
156.5      Subd. 2.  [DEFINITION OF QUALIFIED SUPPLEMENTAL NEEDS 
156.6   TRUST.] A qualified supplemental needs trust is a trust that: 
156.7      (1) was established on or after July 1, 1992; 
156.8      (2) was established solely for the benefit of one person 
156.9   who has a disability under federal Social Security 
156.10  Administration supplemental security income or retirement, 
156.11  survivors, and disability insurance disability determination 
156.12  standards and who was determined as such before the creation of 
156.13  the trust; 
156.14     (3) is funded, in whole or in part, by the primary 
156.15  recipient of the optional annuity form and, unless the trust is 
156.16  a Zebley trust, is not funded by the beneficiary, the 
156.17  beneficiary's spouse, or a person who is required to pay a sum 
156.18  to or for the trust beneficiary under the terms of litigation or 
156.19  a litigation settlement; 
156.20     (4) is established to cover reasonable living expenses and 
156.21  other basic needs of the disabilitant, in whole or in part, in 
156.22  instances when public assistance does not provide sufficiently 
156.23  for these needs; 
156.24     (5) is not permitted to make disbursement to replace or 
156.25  reduce public assistance otherwise available; 
156.26     (6) is irrevocable; 
156.27     (7) terminates upon the death of the disabled person for 
156.28  whose benefit it was established; and 
156.29     (8) is determined by the executive director to be a trust 
156.30  that contains excluded assets for purposes of the qualification 
156.31  for public entitlement benefits under the applicable federal and 
156.32  state laws and regulations. 
156.33     Subd. 3.  [COVERED RETIREMENT PLANS.] The provisions of 
156.34  this section apply to the following retirement plans: 
156.35     (1) the general state employees retirement plan of the 
156.36  Minnesota state retirement system established under chapter 352; 
157.1      (2) the correctional state employees retirement plan of the 
157.2   Minnesota state retirement system established under chapter 352; 
157.3      (3) the state patrol retirement plan established under 
157.4   chapter 352B; 
157.5      (4) the legislators retirement plan established under 
157.6   chapter 3A; 
157.7      (5) the judges retirement plan established under chapter 
157.8   490; 
157.9      (6) the general employees retirement plan of the public 
157.10  employees retirement association established under chapter 353; 
157.11     (7) the public employees police and fire plan of the public 
157.12  employees retirement association established under chapter 353; 
157.13     (8) the teachers retirement plan established under chapter 
157.14  354; 
157.15     (9) the Duluth teachers retirement fund association 
157.16  established under chapter 354A; 
157.17     (10) the St. Paul teachers retirement fund association 
157.18  established under chapter 354A; 
157.19     (11) the Minneapolis teachers retirement fund association 
157.20  established under chapter 354A; 
157.21     (12) the Minneapolis employees retirement plan established 
157.22  under chapter 422A; 
157.23     (13) the Minneapolis firefighters relief association 
157.24  established under chapter 423C; 
157.25     (14) the Minneapolis police relief association established 
157.26  under chapter 423B; and 
157.27     (15) the local government correctional service retirement 
157.28  plan of the public employees retirement association established 
157.29  under chapter 353E. 
157.30             REEMPLOYED ANNUITANT EARNINGS DISPOSITION 
157.31     Sec. 37.  [356.47] [DISPOSITION OF AMOUNT IN EXCESS OF 
157.32  REEMPLOYED ANNUITANT EARNINGS LIMITATIONS.] 
157.33     Subdivision 1.  [APPLICATION.] This section applies to the 
157.34  balance of annual retirement annuities on the amount of 
157.35  retirement annuity reductions after reemployed annuitant 
157.36  earnings limitations for retirement plans governed by section 
158.1   352.115, subdivision 10; 353.37; 354.44, subdivision 5; or 
158.2   354A.31, subdivision 3. 
158.3      Subd. 2.  [RECORDKEEPING; REPORTING.] The chief 
158.4   administrative officer of each retirement plan shall keep 
158.5   records for each reemployed annuitant of the amount of the 
158.6   annuity reduction.  This amount must be reported to each member 
158.7   at least once each year. 
158.8      Subd. 3.  [PAYMENT.] (a) Upon the retired member attaining 
158.9   the age of 65 years or upon the first day of the month next 
158.10  following the month occurring one year after the termination of 
158.11  the reemployment that gave rise to the limitation, whichever is 
158.12  later, and the filing of a written application, the retired 
158.13  member is entitled to the payment, in a lump sum, of the value 
158.14  of the person's amount under subdivision 2, plus interest at the 
158.15  compound annual rate of six percent from the date that the 
158.16  amount was deducted from the retirement annuity to the date of 
158.17  payment. 
158.18     (b) The written application must be on a form prescribed by 
158.19  the chief administrative officer of the applicable retirement 
158.20  plan. 
158.21     (c) If the retired member dies before the payment provided 
158.22  for in paragraph (a) is made, the amount is payable, upon 
158.23  written application, to the deceased person's surviving spouse, 
158.24  or if none, to the deceased person's designated beneficiary, or 
158.25  if none, to the deceased person's estate. 
158.26                  MARRIAGE DISSOLUTION RETIREMENT 
158.27                        COVERAGE INFORMATION 
158.28     Sec. 38.  [356.49] [PROVISION OF INFORMATION IN THE EVENT 
158.29  OF MARRIAGE DISSOLUTION.] 
158.30     Subdivision 1.  [INFORMATION FOR A PENDING MARRIAGE 
158.31  DISSOLUTION.] (a) Upon receipt of a written request by a person 
158.32  with access to the data under subdivision 3 who cites this 
158.33  statute, a public or private pension plan administrator must 
158.34  provide the court and the parties to a marriage dissolution 
158.35  action involving a plan member or former plan member with 
158.36  information regarding pension benefits or rights of the plan 
159.1   member or former plan member.  The pension plan shall provide 
159.2   this information upon the request of the court or a party to the 
159.3   action without requiring a signed authorization from the plan 
159.4   member or former plan member. 
159.5      (b) The information must include the pension benefits or 
159.6   rights of the plan member or former plan member as of the first 
159.7   day of the month following the date of the request, or as of the 
159.8   end of the previous fiscal year for the plan, and as of the date 
159.9   of valuation of marital assets under section 518.58, if the 
159.10  person requesting the information specifies that date.  The 
159.11  information must include the accrued service credit of the 
159.12  person, the credited salary of the person for the most current 
159.13  five-year period, a summary of the benefit plan, and any other 
159.14  information relevant to the calculation of the present value of 
159.15  the benefits or rights. 
159.16     Subd. 2.  [INFORMATION FOR AN EXISTING DISSOLUTION DECREE.] 
159.17  If a marriage dissolution decree rendered by a court of 
159.18  competent jurisdiction prior to August 1, 1987, provided a 
159.19  procedure for the distribution of future pension plan payments, 
159.20  upon request the applicable pension plan administrator shall 
159.21  provide on a timely basis to the court and the parties to the 
159.22  action, the required information to implement that procedure 
159.23  without requiring a signed authorization from the plan member or 
159.24  former plan member. 
159.25     Subd. 3.  [ACCESS TO DATA.] Notwithstanding any provision 
159.26  of chapter 13 to the contrary, an administrator may release 
159.27  private or confidential data on individuals to the court, the 
159.28  parties to a marriage dissolution, their attorneys, and an 
159.29  actuary appointed under section 518.582, to the extent necessary 
159.30  to comply with this section, but only if the administrator has 
159.31  received a copy of the legal petition showing that an action for 
159.32  marriage dissolution has commenced and a copy of the affidavit 
159.33  of service showing that the petition has been served on the 
159.34  responding party to the action. 
159.35                   SERVICE AND SALARY CREDIT UPON 
159.36                         WRONGFUL DISCHARGE 
160.1      Sec. 39.  Minnesota Statutes 2000, section 356.50, is 
160.2   amended to read: 
160.3      356.50 [SERVICE AND SALARY CREDIT FROM BACK PAY AWARDS IN 
160.4   THE EVENT OF WRONGFUL DISCHARGE.] 
160.5      (a) A person who is wrongfully discharged from public 
160.6   employment that gave rise to coverage by a public employee 
160.7   pension plan listed enumerated in section 356.30, subdivision 3, 
160.8   is entitled to obtain allowable service credit from the 
160.9   applicable public employee pension plan for the applicable 
160.10  period caused by the wrongful discharge.  
160.11     (b) A person is wrongfully discharged for purposes of this 
160.12  section if: 
160.13     (1) the person has been determined by a court of competent 
160.14  jurisdiction or by an arbitrator in binding arbitration, 
160.15  whichever applies, to have been wrongfully discharged from 
160.16  public employment; 
160.17     (2) the person received an award of back pay with respect 
160.18  to that discharge; and 
160.19     (3) the award does not include any amount for any lost or 
160.20  interrupted public pension plan coverage. 
160.21     (b) (c) To obtain the public pension plan allowable service 
160.22  credit, the person shall pay the required member contribution 
160.23  amount.  The required member contribution amount is the member 
160.24  contribution rate or rates in effect for the pension plan during 
160.25  the period of service covered by the back pay award, applied to 
160.26  the unpaid gross salary amounts of the back pay award including 
160.27  reemployment insurance, workers' compensation or wages from 
160.28  other sources which reduced the back award.  No contributions 
160.29  shall be made under this clause for compensation covered by a 
160.30  public pension plan listed in section 356.30, subdivision 3, for 
160.31  employment during the removal period.  The person shall pay the 
160.32  required member contribution amount within 60 days of the date 
160.33  of receipt of the back pay award, within 60 days of April 14, 
160.34  1992, or within 60 days of a billing from the retirement fund, 
160.35  whichever is later. 
160.36     (c) (d) The public employer who wrongfully discharged the 
161.1   public employee must pay an employer contribution on the back 
161.2   pay award.  The employer contribution must be based on the 
161.3   employer contribution rate or rates in effect for the pension 
161.4   plan during the period of service covered by the back pay award, 
161.5   applied to the salary amount on which the member contribution 
161.6   amount was determined under paragraph (b) (c).  Interest on both 
161.7   the required member and employer contribution amount must be 
161.8   paid by the employer at the annual compound rate of 8.5 percent 
161.9   per year, expressed monthly, between the date the contribution 
161.10  amount would have been paid to the date of actual payment.  The 
161.11  employer payment must be made within 30 days of the payment 
161.12  under paragraph (b) (c). 
161.13     Sec. 40.  Minnesota Statutes 2000, section 356.55, as 
161.14  amended by Laws 2001, First Special Session chapter 10, article 
161.15  6, section 16, is amended to read: 
161.16     356.55 [PRIOR SERVICE CREDIT PURCHASE PAYMENT AMOUNT 
161.17  DETERMINATION PROCEDURE.] 
161.18     Subdivision 1.  [APPLICATION.] (a) Unless the prior service 
161.19  credit purchase authorization special law or general statute 
161.20  provision explicitly specifies a different purchase payment 
161.21  amount determination procedure, this section governs the 
161.22  determination of the prior service credit purchase payment 
161.23  amount of any prior service credit purchase.  
161.24     (b) The purchase payment amount determination procedure 
161.25  must recognize any service credit accrued to the purchaser in a 
161.26  pension plan listed enumerated in section 356.30, subdivision 3. 
161.27     (c) Any service credit in a Minnesota defined benefit 
161.28  public employee pension plan available to be reinstated by the 
161.29  purchaser through the repayment of a refund of member or 
161.30  employee contributions previously received must be repaid in 
161.31  full before any purchase of prior service credit payment is made 
161.32  under this section. 
161.33     Subd. 2.  [DETERMINATION.] (a) Unless the prior service 
161.34  credit purchase minimum purchase payment amount determined under 
161.35  paragraph (d) is greater, the prior service credit purchase 
161.36  amount is the result obtained by subtracting the amount 
162.1   determined under paragraph (c) from the amount determined under 
162.2   paragraph (b). 
162.3      (b) The present value of the unreduced single life 
162.4   retirement annuity, with the purchase of the additional service 
162.5   credit included, must be calculated as follows: 
162.6      (1) the age at first eligibility for an unreduced single 
162.7   life retirement annuity, including the purchase of the 
162.8   additional service credit, must be determined; 
162.9      (2) the length of total service credit, including the 
162.10  period of the purchase of the additional service credit, at the 
162.11  age determined under clause (1) must be determined; 
162.12     (3) the highest five successive years average salary at the 
162.13  age determined under clause (1), assuming five percent annual 
162.14  compounding salary increases from the most current annual salary 
162.15  amount at the age determined under clause (1), must be 
162.16  determined; 
162.17     (4) using the benefit accrual rate or rates applicable to 
162.18  the prospective purchaser of the service credit based on the 
162.19  prospective purchaser's actual date of entry into covered 
162.20  service, the length of service determined under clause (2), and 
162.21  the final average salary determined under clause (3), the annual 
162.22  unreduced single life retirement annuity amount must be 
162.23  determined; 
162.24     (5) the actuarial present value of the projected annual 
162.25  unreduced single life retirement annuity amount determined under 
162.26  clause (4) at the age determined under clause (1), using the 
162.27  same actuarial factor that the plan would use to determine 
162.28  actuarial equivalence for optional annuity forms and related 
162.29  purposes, must be determined; and 
162.30     (6) the discounted value of the amount determined under 
162.31  clause (5) to the date of the prospective purchase, using an 
162.32  interest rate of 8.5 percent and no mortality probability 
162.33  decrement, must be determined. 
162.34     (c) The present value of the unreduced single life 
162.35  retirement annuity, without the purchase of the additional 
162.36  service credit included, must be calculated as follows:  
163.1      (1) the age at first eligibility for an unreduced single 
163.2   life retirement annuity, not including the purchase of 
163.3   additional service credit, must be determined; 
163.4      (2) the length of accrued service credit, without the 
163.5   period of the purchase of the additional service credit, at the 
163.6   age determined under clause (1), must be determined; 
163.7      (3) the highest five successive years average salary at the 
163.8   age determined under clause (1), assuming five percent annual 
163.9   compounding salary increases from the most current annual salary 
163.10  amount to the age determined under clause (1), must be 
163.11  determined; 
163.12     (4) using the benefit accrual rate or rates applicable to 
163.13  the prospective purchaser of the service credit based on the 
163.14  prospective purchaser's actual date of entry into covered 
163.15  service the length of service credit determined under clause 
163.16  (2), and the final average salary determined under clause (3), 
163.17  the annual unreduced single life retirement annuity amount must 
163.18  be determined; 
163.19     (5) the actuarial present value of the projected annual 
163.20  unreduced single life retirement annuity amount determined under 
163.21  clause (4) at the age determined under clause (1), using the 
163.22  same actuarial factor that the plan would use to determine 
163.23  actuarial equivalence for optional annuity forms and related 
163.24  purposes, must be determined; 
163.25     (6) the discounted value of the amount determined under 
163.26  clause (5) to the date of the prospective purchase, using an 
163.27  interest rate of 8.5 percent and no mortality probability 
163.28  decrement, must be determined; and 
163.29     (7) the net value of the discounted value determined under 
163.30  clause (6), must be determined by applying a service ratio, 
163.31  where the numerator is the total length of credited service 
163.32  determined under paragraph (b), clause (2), reduced by the 
163.33  period of the additional service credit proposed to be 
163.34  purchased, and where the denominator is the total length of 
163.35  service credit determined under clause (2). 
163.36     (d) The minimum prior service credit purchase payment 
164.1   amount is the amount determined by multiplying the most current 
164.2   annual salary of the prospective purchaser by the combined 
164.3   current employee, employer, and any additional employer 
164.4   contribution rates for the applicable pension plan and by 
164.5   multiplying that result by the number of years of service or 
164.6   fractions of years of service of the potential service credit 
164.7   purchase. 
164.8      Subd. 3.  [SOURCE OF DETERMINATION.] The prior service 
164.9   credit purchase payment amounts under subdivision 2 must be 
164.10  calculated by the chief administrative officer of the public 
164.11  pension plan using a prior service credit purchase payment 
164.12  amount determination process that has been verified for accuracy 
164.13  and consistency under this section by the commission-retained 
164.14  actuary.  That verification must be in writing and must occur 
164.15  before the first prior service credit purchase for the plan 
164.16  under this section is accepted and every five years thereafter 
164.17  or whenever the preretirement interest rate, postretirement 
164.18  interest rate, payroll growth, or mortality actuarial assumption 
164.19  for the applicable pension plan is modified under section 
164.20  356.215, whichever occurs first. 
164.21     Subd. 4.  [PRIOR SERVICE CREDIT PURCHASE PROCESSING FEE.] A 
164.22  public pension plan may establish a fee to be charged to the 
164.23  prospective purchaser for processing a prior service credit 
164.24  purchase application and the prior service credit purchase 
164.25  payment amount calculation.  The fee must be established by the 
164.26  governing board of the pension plan and must be uniform for 
164.27  comparable service credit purchase situations or actuarial 
164.28  calculation requests.  The prior service credit purchase 
164.29  processing fee structure must be published by the chief 
164.30  administrative officer of the applicable retirement plan in the 
164.31  State Register. 
164.32     Subd. 5.  [PAYMENT RESPONSIBILITY; EMPLOYER OPTION.] Unless 
164.33  the prior service credit purchase authorization special law or 
164.34  general statute provision explicitly specifies otherwise, the 
164.35  prior service credit purchase payment amount determined under 
164.36  subdivision 2 is payable by the purchaser, but.  However, the 
165.1   former employer of the purchaser or the current employer of the 
165.2   purchaser may, at its discretion, pay all or a portion of the 
165.3   purchase payment amount in excess of an amount equal to the 
165.4   employee contribution rate or rates in effect during the prior 
165.5   service period applied to the actual salary rates in effect 
165.6   during the prior service period, plus annual compound interest 
165.7   at the rate of 8.5 percent from the date on which the 
165.8   contributions would have been made if made contemporaneous with 
165.9   the service period to the date on which the payment is actually 
165.10  made. 
165.11     Subd. 6.  [REPORT ON PRIOR SERVICE CREDIT PURCHASES.] (a) 
165.12  As part of the regular data reporting provided to the consulting 
165.13  actuary retained by the legislative commission on pensions and 
165.14  retirement annually, the chief administrative officer of each 
165.15  public pension plan that has accepted a prior service credit 
165.16  purchase payment under this section shall report for any 
165.17  purchase, the purchaser, the purchaser's employer, the age of 
165.18  the purchaser, the period of the purchase, the purchaser's 
165.19  prepurchase accrued service credit, the purchaser's postpurchase 
165.20  accrued service credit, the purchaser's prior service credit 
165.21  payment, the prior service credit payment made by the 
165.22  purchaser's employer, and the amount of the additional benefit 
165.23  or annuity purchased. 
165.24     (b) As a supplemental report to the regular annual 
165.25  actuarial valuation for the applicable public pension plan 
165.26  prepared by the consulting actuary retained by the legislative 
165.27  commission on pensions and retirement, there must be the actuary 
165.28  shall provide a comparison for each purchase showing the total 
165.29  prior service credit payment received from all sources and the 
165.30  increased public pension plan actuarial accrued liability 
165.31  resulting from each purchase. 
165.32     Subd. 7.  [EXPIRATION OF PURCHASE PAYMENT DETERMINATION 
165.33  PROCEDURE.] (a) This section expires and is repealed on July 1, 
165.34  2003. 
165.35     (b) Authority for any public pension plan to accept a prior 
165.36  service credit payment that is calculated in a timely fashion 
166.1   under this section expires on October 1, 2003. 
166.2      Sec. 41.  Minnesota Statutes 2000, section 356.551, is 
166.3   amended to read: 
166.4      356.551 [POST JULY 1, 2001 2003, PRIOR SERVICE CREDIT 
166.5   PURCHASE PAYMENT AMOUNT DETERMINATION PROCEDURE.] 
166.6      (a) Subdivision 1.  [APPLICATION.] Unless the prior service 
166.7   credit purchase authorization special law or general statute 
166.8   provision explicitly specifies a different purchase payment 
166.9   amount determination procedure, and if section 356.55 has 
166.10  expired, this section governs the determination of the prior 
166.11  service credit purchase payment amount of any prior service 
166.12  credit purchase. 
166.13     (b) Subd. 2.  [DETERMINATION.] The prior service credit 
166.14  purchase amount is an amount equal to the actuarial present 
166.15  value, on the date of payment, as calculated by the chief 
166.16  administrative officer of the pension plan and reviewed by the 
166.17  actuary retained by the legislative commission on pensions and 
166.18  retirement, of the amount of the additional retirement annuity 
166.19  obtained by the acquisition of the additional service credit in 
166.20  this section.  Calculation of this amount must be made using the 
166.21  preretirement interest rate applicable to the public pension 
166.22  plan specified in section 356.215, subdivision 4d, and the 
166.23  mortality table adopted for the public pension plan.  The 
166.24  calculation must assume continuous future service in the public 
166.25  pension plan until, and retirement at, the age at which the 
166.26  minimum requirements of the fund for normal retirement or 
166.27  retirement with an annuity unreduced for retirement at an early 
166.28  age, including section 356.30, are met with the additional 
166.29  service credit purchased.  The calculation must also assume a 
166.30  full-time equivalent salary, or actual salary, whichever is 
166.31  greater, and a future salary history that includes annual salary 
166.32  increases at the applicable salary increase rate for the plan 
166.33  specified in section 356.215, subdivision 4d.  Payment must be 
166.34  made in one lump sum within one year of the prior service credit 
166.35  authorization.  Payment of the amount calculated under this 
166.36  section must be made by the applicable eligible person.  
167.1   However, the current employer or the prior employer may, at its 
167.2   discretion, pay all or any portion of the payment amount that 
167.3   exceeds an amount equal to the employee contribution rates in 
167.4   effect during the period or periods of prior service applied to 
167.5   the actual salary rates in effect during the period or periods 
167.6   of prior service, plus interest at the rate of 8.5 percent a 
167.7   year compounded annually from the date on which the 
167.8   contributions would otherwise have been made to the date on 
167.9   which the payment is made.  If the employer agrees to payments 
167.10  under this paragraph subdivision, the purchaser must make the 
167.11  employee payments required under this paragraph subdivision 
167.12  within 290 days of the prior service credit authorization.  If 
167.13  that employee payment is made, the employer payment under 
167.14  this paragraph subdivision must be remitted to the chief 
167.15  administrative officer of the public pension plan within 60 days 
167.16  of receipt by the chief administrative officer of the employee 
167.17  payments specified under this paragraph subdivision. 
167.18     (c) Subd. 3.  [DOCUMENTATION.] The prospective purchaser 
167.19  must provide any relevant documentation required by the chief 
167.20  administrative officer of the public pension plan to determine 
167.21  eligibility for the prior service credit under this section. 
167.22     (d) Subd. 4.  [PAYMENT PRECONDITION FOR CREDIT GRANT.] 
167.23  Service credit for the purchase period must be granted by the 
167.24  public pension plan to the purchaser upon receipt of the 
167.25  purchase payment amount specified in paragraph (b) subdivision 2.
167.26     Sec. 42.  Minnesota Statutes 2001 Supplement, section 
167.27  356.555, is amended to read: 
167.28     356.555 [PARENTAL OR FAMILY LEAVE SERVICE CREDIT PURCHASE.] 
167.29     Subdivision 1.  [SERVICE CREDIT PURCHASE AUTHORIZATION.] 
167.30  (a) Notwithstanding any provision to the contrary of the laws 
167.31  governing a covered pension plan enumerated in subdivision 4, a 
167.32  member of the pension plan who has at least three years of 
167.33  allowable service covered by the applicable pension plan and who 
167.34  was granted by the employer a parental leave of absence as 
167.35  defined in paragraph (b), or who was granted by the employer a 
167.36  family leave of absence as defined in paragraph (c), or who had 
168.1   a parental or family-related break in employment, as defined in 
168.2   paragraph (d), for which the person did not previously receive 
168.3   service credit or for which the person did not receive or 
168.4   purchase service credit from another defined benefit public 
168.5   employee pension plan, is entitled to purchase the actual period 
168.6   of the leave or of the break in service, up to five years, of 
168.7   allowable service credit in the applicable retirement plan.  The 
168.8   purchase payment amount is governed by section 356.55. 
168.9      (b) For purposes of this section, a parental leave of 
168.10  absence is a temporary period of interruption of or separation 
168.11  from active employment for the purposes of handling maternity or 
168.12  paternity duties that has been approved by the employing unit 
168.13  and that includes the right of reinstatement to employment. 
168.14     (c) For purposes of this section, a family leave of absence 
168.15  is a family leave under United States Code, title 42, section 
168.16  12631, as amended. 
168.17     (d) For purposes of this section, a parental or 
168.18  family-related break in employment is a period following a 
168.19  termination of active employment primarily for the purpose of 
168.20  the birth of a child, the adoption of a child, or the provision 
168.21  of care to a near relative or in-law, after which the person 
168.22  returned to the prior employing unit or to an employing unit 
168.23  covered by the same pension plan that provided retirement 
168.24  coverage immediately prior to the termination of employment. 
168.25     Subd. 2.  [APPLICATION AND DOCUMENTATION.] (a) A person who 
168.26  desires to purchase service credit under subdivision 1 must 
168.27  apply for the service credit purchase with the chief 
168.28  administrative officer of the enumerated pension plan.  
168.29     (b) The application must include all necessary 
168.30  documentation of the qualifications of the person to make the 
168.31  purchase, signed written permission to allow the chief 
168.32  administrative officer to request and receive necessary 
168.33  verification of all applicable facts and eligibility 
168.34  requirements, and any other relevant information that the chief 
168.35  administrative officer may require. 
168.36     Subd. 3.  [SERVICE CREDIT GRANT.] Allowable and formula 
169.1   service credit in the applicable enumerated pension plan for the 
169.2   purchase period must be granted to the purchaser upon receipt of 
169.3   the purchase payment amount calculated under section 356.55.  
169.4   Payment of the purchase amount must be made before the person 
169.5   retires. 
169.6      Subd. 4.  [COVERED PENSION PLANS.] This section applies to 
169.7   the following pension plans: 
169.8      (1) the general state employees retirement plan governed by 
169.9   chapter 352; 
169.10     (2) the correctional state employees retirement plan 
169.11  governed by chapter 352; 
169.12     (3) the general public employees retirement plan of the 
169.13  public employees retirement association governed by chapter 353; 
169.14     (4) the public employees police and fire plan governed by 
169.15  chapter 353; 
169.16     (5) the teachers retirement plan governed by chapter 354; 
169.17     (6) the Minneapolis teachers retirement fund association 
169.18  governed by chapter 354A; 
169.19     (7) the Saint Paul teachers retirement fund association 
169.20  governed by chapter 354A; 
169.21     (8) the Duluth teachers retirement fund association 
169.22  governed by chapter 354A; 
169.23     (9) the Minneapolis employees retirement plan governed by 
169.24  chapter 422A; 
169.25     (10) the Minneapolis police relief association governed by 
169.26  chapter 423B; and 
169.27     (11) the Minneapolis fire department relief association 
169.28  governed by sections 69.25 to 69.53 and augmented by Laws 1959, 
169.29  chapters 213, 491, and 568, and other special local legislation 
169.30  chapter 423C. 
169.31                     COVERED SALARY LIMITATION 
169.32     Sec. 43.  Minnesota Statutes 2000, section 356.611, is 
169.33  amended to read: 
169.34     356.611 [LIMITATION ON PUBLIC EMPLOYEE SALARIES FOR PENSION 
169.35  PURPOSES.] 
169.36     Subdivision 1.  [STATE SALARY LIMITATIONS.] (a) 
170.1   Notwithstanding any provision of law, bylaws, articles of 
170.2   incorporation, retirement and disability allowance plan 
170.3   agreements, or retirement plan contracts to the contrary, the 
170.4   covered salary for pension purposes for a plan participant of a 
170.5   covered retirement fund under enumerated in section 356.30, 
170.6   subdivision 3, may not exceed 95 percent of the salary 
170.7   established for the governor under section 15A.082 at the time 
170.8   the person received the salary. 
170.9      (b) This section does not apply to a salary paid: 
170.10     (1) to the governor; 
170.11     (2) to an employee of a political subdivision in a position 
170.12  that is excluded from the limit as specified under section 
170.13  43A.17, subdivision 9; or 
170.14     (3) to a state employee in a position for which the 
170.15  commissioner of employee relations has approved a salary rate 
170.16  that exceeds 95 percent of the governor's salary. 
170.17     (c) The limited covered salary determined under this 
170.18  section must be used in determining employee and employer 
170.19  contributions and in determining retirement annuities and other 
170.20  benefits under the respective covered retirement fund and under 
170.21  this chapter. 
170.22     Subd. 2.  [FEDERAL COMPENSATION LIMITS.] For members first 
170.23  contributing to a covered pension plan covered under enumerated 
170.24  in section 356.30, subdivision 3, on or after July 1, 1995, 
170.25  compensation in excess of the limitation set forth in Internal 
170.26  Revenue Code 401(a)(17) shall may not be included for 
170.27  contribution and benefit computation purposes.  The compensation 
170.28  limit set forth in Internal Revenue Code 401(a)(17) on June 30, 
170.29  1993, shall apply applies to members first contributing before 
170.30  July 1, 1995. 
170.31                MEMBER CONTRIBUTION EMPLOYER PICK UP 
170.32     Sec. 44.  Minnesota Statutes 2001 Supplement, section 
170.33  356.62, is amended to read: 
170.34     356.62 [PAYMENT OF EMPLOYEE CONTRIBUTION.] 
170.35     (a) For purposes of any public pension plan, as defined in 
170.36  section 365.615, paragraph (b), each employer shall pick up the 
171.1   employee contributions required pursuant to law or the pension 
171.2   plan for all salary payable after December 31, 1982.  If the 
171.3   United States Treasury department rules that pursuant to under 
171.4   section 414(h) of the Internal Revenue Code of 1986, as amended 
171.5   through December 31, 1992, that these picked up contributions 
171.6   are not includable in the employee's adjusted gross income until 
171.7   they are distributed or made available, then these picked up 
171.8   contributions shall must be treated as employer contributions in 
171.9   determining tax treatment pursuant to under the Internal Revenue 
171.10  Code of 1986, as amended through December 31, 1992, and the 
171.11  employer shall discontinue withholding federal income taxes on 
171.12  the amount of these contributions.  The employer shall pay these 
171.13  picked up contributions from the same source of funds as is used 
171.14  to pay the salary of the employee.  The employer shall pick up 
171.15  these employee contributions by a reduction in the cash salary 
171.16  of the employee. 
171.17     (b) Employee contributions that are picked up shall must be 
171.18  treated for all purposes of the public pension plan in the same 
171.19  manner and to the same extent as employee contributions that 
171.20  were made prior to the date on which the employee contributions 
171.21  pick up began.  The amount of the employee contributions that 
171.22  are picked up shall must be included in the salary upon which 
171.23  retirement coverage is credited and retirement and survivor's 
171.24  benefits are determined.  For purposes of this section, 
171.25  "employee" means any person covered by a public pension plan.  
171.26  For purposes of this section, "employee contributions" include 
171.27  any sums deducted from the employee's salary or wages or 
171.28  otherwise paid in lieu thereof, regardless of whether they are 
171.29  denominated contributions by the public pension plan. 
171.30     (c) For any calendar year in which withholding has been 
171.31  reduced pursuant to under this section, the employing unit shall 
171.32  supply each employee and the commissioner of revenue with an 
171.33  information return indicating the amount of the employer's 
171.34  picked-up contributions for the calendar year that were not 
171.35  subject to withholding.  This return shall must be provided to 
171.36  the employee not later than January 31 of the succeeding 
172.1   calendar year.  The commissioner of revenue shall prescribe the 
172.2   form of the return and the provisions of section 289A.12 shall 
172.3   must apply to the extent not inconsistent with the provisions of 
172.4   this section. 
172.5                     PENSION ASSET AND INVESTMENT 
172.6                             LIMITATIONS 
172.7      Sec. 45.  [356.63] [LIMITATION ON USE OF PUBLIC PENSION 
172.8   PLAN ASSETS.] 
172.9      (a) Money held by or credited to a public pension plan as 
172.10  assets, including employer and employee contributions, state 
172.11  aid, appropriations from the state or a governmental 
172.12  subdivision, and accrued earnings on investments, constitutes a 
172.13  dedicated fund.  The dedicated fund may be used exclusively to 
172.14  pay retirement annuities, service pensions, disability benefits, 
172.15  survivor benefits, refunds of contributions, or other benefits 
172.16  provided under the benefit plan document or documents governing 
172.17  the public pension plan, and to pay reasonable administrative 
172.18  expenses approved by the governing board of the public pension 
172.19  plan or by another appropriate authority.  No assets of a public 
172.20  pension plan may be loaned or transferred to the state or a 
172.21  governmental subdivision or be used to amortize an unfunded 
172.22  actuarial accrued liability in another public pension plan or 
172.23  fund, whether or not the plan providing the assets consolidates 
172.24  or has consolidated with the plan receiving the assets.  Nothing 
172.25  in this section prohibits a public pension plan or the state 
172.26  board of investment from investing the assets of a plan as 
172.27  authorized by law, including the investment of the assets of 
172.28  public pension plans by the state board of investment in a 
172.29  commingled investment fund. 
172.30     (b) A public pension plan for purposes of this section 
172.31  means a pension plan or fund specified in section 356.20, 
172.32  subdivision 2, or 356.30, subdivision 3, or a retirement or 
172.33  pension plan or fund, including a supplemental retirement plan 
172.34  or fund, established, maintained, or supported by a governmental 
172.35  subdivision or public body whose revenues are derived from 
172.36  taxation, fees, assessments, or other public sources. 
173.1      Sec. 46.  [356.64] [REAL ESTATE INVESTMENTS.] 
173.2      (a) Notwithstanding any law to the contrary, any public 
173.3   pension plan whose assets are not invested by the state board of 
173.4   investment may invest its funds in Minnesota situs nonfarm real 
173.5   estate ownership interests or loans secured by mortgages or 
173.6   deeds of trust if the investment is consistent with section 
173.7   356A.04. 
173.8      (b) Except to the extent authorized in the case of the 
173.9   Minneapolis employees retirement fund under section 422A.05, 
173.10  subdivision 2c, paragraph (a), an investment otherwise 
173.11  authorized by this section must also comply with the 
173.12  requirements and limitations of section 11A.24, subdivision 6. 
173.13                   ABANDONED PENSION FUND AMOUNTS 
173.14     Sec. 47.  Minnesota Statutes 2001 Supplement, section 
173.15  356.65, subdivision 1, is amended to read: 
173.16     Subdivision 1.  [DEFINITIONS.] For purposes of this 
173.17  section, unless the context clearly indicates otherwise, each of 
173.18  the following terms shall have has the meanings meaning given to 
173.19  them it:  
173.20     (a) "Public pension fund" means any public pension plan as 
173.21  defined in section 356.615 356.63, paragraph (b), and any 
173.22  Minnesota volunteer firefighters relief association which is 
173.23  established pursuant to under chapter 424A and governed pursuant 
173.24  to under sections 69.771 to 69.776. 
173.25     (b) "Unclaimed public pension fund amounts" means any 
173.26  amounts representing accumulated member contributions, any 
173.27  outstanding unpaid annuity, service pension or other retirement 
173.28  benefit payments, including those made on warrants issued by the 
173.29  commissioner of finance, which have been issued and delivered 
173.30  for more than six months prior to the date of the end of the 
173.31  fiscal year applicable to the public pension fund, and any 
173.32  applicable interest to the credit of:  
173.33     (1) an inactive or former member of a public pension fund 
173.34  who is not entitled to a defined retirement annuity and who has 
173.35  not applied for a refund of those amounts within five years 
173.36  after the last member contribution was made; or 
174.1      (2) a deceased inactive or former member of a public 
174.2   pension fund if no survivor is entitled to a survivor benefit 
174.3   and no survivor, designated beneficiary or legal representative 
174.4   of the estate has applied for a refund of those amounts within 
174.5   five years after the date of death of the inactive or former 
174.6   member. 
174.7      Sec. 48.  Minnesota Statutes 2000, section 356.65, 
174.8   subdivision 2, is amended to read: 
174.9      Subd. 2.  [DISPOSITION OF ABANDONED AMOUNTS.] Any unclaimed 
174.10  public pension fund amounts existing in any public pension 
174.11  fund shall be are presumed to be abandoned, but shall are not 
174.12  be subject to the provisions of sections 345.31 to 345.60.  
174.13  Unless the benefit plan of the public pension fund specifically 
174.14  provides for a different disposition of unclaimed or abandoned 
174.15  funds or amounts, any unclaimed public pension fund 
174.16  amounts shall cancel and shall must be credited to the public 
174.17  pension fund.  If the unclaimed public pension fund amount 
174.18  exceeds $25 and the inactive or former member again becomes a 
174.19  member of the applicable public pension fund plan or applies for 
174.20  a retirement annuity pursuant to under section 3A.12, 352.72, 
174.21  352B.30, 352C.051, 353.71, 354.60, 356.30, or 422A.16, 
174.22  subdivision 8, whichever is applicable, applies, the canceled 
174.23  amount shall must be restored to the credit of the person.  
174.24                    HEALTH INSURANCE WITHHOLDING
174.25     Sec. 49.  Minnesota Statutes 2000, section 356.87, is 
174.26  amended to read: 
174.27     356.87 [HEALTH INSURANCE WITHHOLDING.] 
174.28     (a) Upon authorization of a person entitled to receive a 
174.29  retirement annuity, disability benefit or survivor benefit, the 
174.30  executive director of a public pension fund listed enumerated in 
174.31  section 356.20, subdivision 2, shall withhold health insurance 
174.32  premium amounts from the retirement annuity, disability benefit 
174.33  or survivor benefit, and shall pay the premium amounts to the 
174.34  public employees insurance program.  
174.35     (b) The public employees insurance program shall reimburse 
174.36  a public pension fund for the administrative expense of 
175.1   withholding the premium amounts and shall assume liability for 
175.2   the failure of a public pension fund to properly withhold the 
175.3   premium amounts. 
175.4                           RETIREMENT PLAN 
175.5                            ADMINISTRATION 
175.6      Sec. 50.  [356B.05] [PUBLIC PENSION ADMINISTRATION 
175.7   LEGISLATION.] 
175.8      (a) Proposed administrative legislation recommended by or 
175.9   on behalf of the Minnesota state retirement system, the public 
175.10  employees retirement association, the teachers retirement 
175.11  association, the Minneapolis employees retirement fund, or a 
175.12  first class city teachers retirement fund association must be 
175.13  presented to the legislative commission on pensions and 
175.14  retirement, the state and local governmental operations 
175.15  committee of the senate, and the governmental operations and 
175.16  veterans affairs policy committee of the house of 
175.17  representatives on or before October 1 of each year in order for 
175.18  the proposed administrative legislation to be acted upon during 
175.19  the upcoming legislative session.  The executive director or the 
175.20  deputy executive director of the legislative commission on 
175.21  pensions and retirement shall provide written comments on the 
175.22  proposed provisions to the public pension plans by November 15 
175.23  of each year. 
175.24     (b) Proposed administrative legislation recommended by or 
175.25  on behalf of a public employee pension plan or system under 
175.26  paragraph (a) must address provisions: 
175.27     (1) authorizing allowable service credit for leaves of 
175.28  absence and related circumstances; 
175.29     (2) governing offsets or deductions from the amount of 
175.30  disability benefits; 
175.31     (3) authorizing the purchase of allowable service credit 
175.32  for prior uncredited periods; 
175.33     (4) governing subsequent employment earnings by reemployed 
175.34  annuitants; and 
175.35     (5) authorizing retroactive effect for retirement annuity 
175.36  or benefit applications. 
176.1      (c) Where possible and desirable, taking into account the 
176.2   differences among the public pension plans in existing law and 
176.3   the unique characteristics of the individual public pension fund 
176.4   memberships, uniform provisions relating to paragraph (b) for 
176.5   all applicable public pension plans must be presented for 
176.6   consideration during the legislative session.  Supporting 
176.7   documentation setting forth the policy rationale for each set of 
176.8   uniform provisions must accompany the proposed administrative 
176.9   legislation. 
176.10     Sec. 51.  [356B.10] [PUBLIC PENSION FACILITIES.] 
176.11     Subdivision 1.  [DEFINITIONS.] (a) The definitions in this 
176.12  subdivision apply to this section. 
176.13     (b) "Boards" mean the board of directors of the Minnesota 
176.14  state retirement system, the board of trustees of the public 
176.15  employees retirement association, and the board of trustees of 
176.16  the teachers retirement association. 
176.17     (c) "Commissioner" means the commissioner of administration.
176.18     Subd. 2.  [BUILDING; RELATED FACILITIES.] (a) The 
176.19  commissioner of administration may provide a building and 
176.20  related facilities to be jointly occupied by the board of 
176.21  directors of the Minnesota state retirement system, the board of 
176.22  trustees of the public employees retirement association, and the 
176.23  board of trustees of the teachers retirement association for the 
176.24  administration of their public pension systems.  
176.25     (b) Design of the facilities is not subject to section 
176.26  16B.33.  The competitive acquisition process set forth in 
176.27  chapter 16C does not apply if the process set forth in 
176.28  subdivision 3 is followed.  
176.29     (c) The boards and the commissioner must submit the plans 
176.30  for a public pension facility under this section to the chair of 
176.31  the house ways and means committee and to the chair of the 
176.32  senate state government finance committee for their approval 
176.33  before the plans are implemented.  
176.34     Subd. 3.  [CONTRACTING PROCEDURES.] (a) The commissioner 
176.35  may enter into a contract for facilities with a contractor to 
176.36  furnish the architectural, engineering, and related services as 
177.1   well as the labor, materials, supplies, equipment, and related 
177.2   construction services on the basis of a request for 
177.3   qualifications and competitive responses received through a 
177.4   request for proposals process that must include the items listed 
177.5   in paragraphs (b) to (i). 
177.6      (b) Before issuing a request for qualifications and a 
177.7   request for proposals, the commissioner, with the assistance of 
177.8   the boards, shall prepare performance criteria and 
177.9   specifications that include: 
177.10     (1) a general floor plan or layout indicating the general 
177.11  dimensions of the public building and space requirements; 
177.12     (2) design criteria for the exterior and site area; 
177.13     (3) performance specifications for all building systems and 
177.14  components to ensure quality and cost efficiencies; 
177.15     (4) conceptual floor plans for systems space; 
177.16     (5) preferred types of interior finishes, styles of 
177.17  windows, lighting and outlets, doors, and features such as 
177.18  built-in counters and telephone wiring; 
177.19     (6) mechanical and electrical requirements; 
177.20     (7) special interior features required; and 
177.21     (8) a completion schedule. 
177.22     (c) The commissioner shall first solicit statements of 
177.23  qualifications from eligible contractors and select more than 
177.24  one qualified contractor based upon experience, technical 
177.25  competence, past performance, capability to perform, and other 
177.26  appropriate facts.  Contractors selected under this process must 
177.27  be, employ, or have as a partner, member, coventurer, or 
177.28  subcontractor, persons licensed and registered under chapter 326 
177.29  to provide the services required to design and complete the 
177.30  project.  The commissioner does not have to select any of the 
177.31  respondents if none reasonably fulfill the criteria set forth in 
177.32  this paragraph. 
177.33     (d) The contractors selected shall be asked to respond to a 
177.34  request for proposals.  Responses must include site plans, 
177.35  design concept, elevation, statement of material to be used, 
177.36  floor layouts, a detailed development budget, and a total cost 
178.1   to complete the project.  The proposal must indicate that the 
178.2   contractor obtained at least two proposals from subcontractors 
178.3   for each item of work and must set forth how the subcontractors 
178.4   were selected.  The commissioner, with the assistance of the 
178.5   boards, shall evaluate the proposals based upon design, cost, 
178.6   quality, aesthetics, and the best overall value to the state 
178.7   pension funds.  The commissioner need not select any of the 
178.8   proposals submitted and reserves the right to reject any and all 
178.9   proposals, and may terminate the process or revise the request 
178.10  for proposals and solicit new proposals if the commissioner 
178.11  determines that the best interests of the pension funds would be 
178.12  better served by doing so.  Proposals submitted are nonpublic 
178.13  data until the contract is awarded. 
178.14     (e) The contractor selected must comply with sections 
178.15  574.26 to 574.261.  Before executing a final contract, the 
178.16  contractor selected shall certify a firm construction price and 
178.17  completion date. 
178.18     (f) The commissioner may consider building sites in the 
178.19  city of St. Paul and surrounding suburbs. 
178.20     (g) Any land, building, or facility leased, constructed, or 
178.21  acquired and any leasehold interest acquired under this section 
178.22  must be held by the state in trust for the three retirement 
178.23  systems as tenants in common.  Each retirement system fund must 
178.24  consider its interest as a fixed asset of its pension fund in 
178.25  accordance with governmental accounting standards. 
178.26     (h) The commissioner may lease to another governmental 
178.27  subdivision, to a private company under contract with the state 
178.28  board of investment, or with the board of directors of the 
178.29  Minnesota state retirement system, whichever applies, to provide 
178.30  deferred compensation services under section 352.96, any portion 
178.31  of the funds' building and lands that is not required for their 
178.32  direct use upon terms and conditions they deem to be in the best 
178.33  interest of the pension funds.  Any income accruing from the 
178.34  rentals must be separately accounted for and utilized to offset 
178.35  ongoing administrative expenses and any excess must be carried 
178.36  forward for future administrative expenses.  The commissioner 
179.1   may also enter into lease agreements for the establishment of 
179.2   satellite offices should the boards find them to be necessary in 
179.3   order to assure their members reasonable access to their 
179.4   services.  The commissioner may lease under section 16B.24 any 
179.5   portion of the facilities not required for the direct use of the 
179.6   boards. 
179.7      (i) The boards shall formulate and adopt a written working 
179.8   agreement that sets forth the nature of each retirement system's 
179.9   ownership interest, the duties and obligations of each system 
179.10  toward the construction, operation, and maintenance costs of its 
179.11  facilities, and identifies one retirement fund to serve as 
179.12  manager for operating and maintenance purposes.  The boards may 
179.13  contract with independent third parties for maintenance-related 
179.14  activities, services, and supplies, and may use the services of 
179.15  the department of administration where economically feasible to 
179.16  do so.  If the boards cannot agree or resolve a dispute about 
179.17  operations or maintenance of the facilities, they may request 
179.18  the commissioner of administration to appoint a representative 
179.19  from the department's real estate management division to serve 
179.20  as arbitrator of the dispute with authority to issue a written 
179.21  resolution of the dispute. 
179.22     Subd. 4.  [REVENUE BONDS.] The commissioner of finance, on 
179.23  request of the governor, may sell and issue revenue bonds in an 
179.24  aggregate principal amount up to $38,000,000 to achieve the 
179.25  purposes described in subdivisions 1 and 2, plus the amount 
179.26  needed to pay issuance costs and interest costs and to establish 
179.27  necessary reserves to secure the bonds.  The commissioner of 
179.28  finance may issue bonds for the purpose of refunding bonds 
179.29  issued under this subdivision.  The bonds may be sold and issued 
179.30  on terms and in a manner the commissioner of finance determines 
179.31  to be in the best interests of the state.  The proceeds of the 
179.32  bonds must be credited to a bond proceeds account in the pension 
179.33  building fund which the commissioner of finance must create in 
179.34  the state treasury. 
179.35     Subd. 5.  [SECURITY.] The boards may pledge any or all 
179.36  assets of the boards as security for the bonds.  The bonds and 
180.1   the interest on them must be paid solely from and secured by all 
180.2   assets of the boards pledged and appropriated for these purposes 
180.3   to the debt service fund created in subdivision 6 and any 
180.4   investment income on the fund and any reserve established for 
180.5   this purpose.  The bonds are not public debt, and the full 
180.6   faith, credit, and taxing powers of the state are not pledged 
180.7   for their payment.  The bonds and the interest on them must not 
180.8   be paid, directly or indirectly, in whole or in part, from a tax 
180.9   of statewide application on any class of property, income, 
180.10  transaction, or privilege. 
180.11     Subd. 6.  [DEBT SERVICE FUND.] There is established in the 
180.12  state treasury a separate and special pension building debt 
180.13  service fund.  Money in the funds managed by the boards is 
180.14  appropriated to the boards for transfer to the pension building 
180.15  debt service fund.  Money appropriated and transferred to the 
180.16  fund and investment income on it on hand or required to be 
180.17  transferred to the fund must be used and is irrevocably 
180.18  appropriated to pay when due the principal of and interest on 
180.19  the bonds authorized in subdivision 4.  
180.20     Subd. 7.  [COVENANTS; AGREEMENTS.] The commissioner of 
180.21  finance may, for and on behalf of the state, enter into 
180.22  covenants and agreements not inconsistent with subdivisions 1 to 
180.23  6 as may be necessary or desirable to facilitate the sale and 
180.24  issuance of the bonds on terms favorable to the state, 
180.25  including, but not limited to, covenants and agreements relating 
180.26  to the payment of and security for the bonds, tax exemption, and 
180.27  disclosure of information required by federal and state 
180.28  securities laws.  The covenants and agreements of the 
180.29  commissioner of finance constitute an enforceable contract of 
180.30  the state and the state pledges and agrees with the holders of 
180.31  any bonds that the state will not limit or alter the rights 
180.32  vested in the commissioner of finance to fulfill the terms of 
180.33  the covenants or agreements made with the holders of the bonds, 
180.34  or in any way impair the rights and remedies of the holders 
180.35  until the bonds, together with the interest on them, with 
180.36  interest on any unpaid installments of interest, and all costs 
181.1   and expenses in connection with any action or proceeding by or 
181.2   on behalf of the holders, are fully met and discharged.  The 
181.3   commissioner of finance may include this pledge and agreement of 
181.4   the state in any covenant or agreement with the holders of the 
181.5   bonds.  Sections 16A.672 and 16A.675 apply to the bonds. 
181.6      Sec. 52.  [CROSS-REFERENCE CHANGES.] 
181.7      In the next and subsequent editions of Minnesota Statutes, 
181.8   the revisor of statutes shall, in each section indicated in 
181.9   column A, replace the cross-reference specified in column B with 
181.10  the cross-reference set forth in column C: 
181.11     column A            column B             column C
181.12  3.751, subd. 1       356.89              356B.10
181.13  3A.02, subd. 1       356.215, subd. 4d   356.215, subd. 8
181.14  3A.02, subd. 4       356.215, subd. 4d   356.215, subd. 8
181.15  3A.11, subd. 1       356.215, subd. 4d   356.215, subd. 8
181.16  11A.18, subd. 6      356.215, subd. 4d   356.215, subd. 8
181.17  11A.18, subd. 9      356.215, subd. 4d   356.215, subd. 8
181.18  11A.18, subd. 11     356.215, subd. 4d   356.215, subd. 8
181.19  13.631, subd. 2      356.80              356.49
181.20  69.77, subd. 2b      356.215, subds. 4   356.215, subds. 4 to 15
181.21                         to 4k
181.22  69.77, subd. 2b      356.215, subd. 4d   356.215, subd. 8
181.23  69.773, subd. 2      356.215, subd. 4d   356.215, subd. 8
181.24  69.773, subd. 4      356.215, subd. 4d   356.215, subd. 8
181.25  352.01, subd. 12     356.215, subd. 4d   356.215, subd. 8
181.26  352.115, subd. 3     356.119, subd. 1    356.315, subd. 1
181.27  352.115, subd. 3     356.119, subd. 2    356.315, subd. 2
181.28  352.115, subd. 10    356.58              356.47
181.29  352.119, subd. 2     356.215, subd. 4d   356.215, subd. 8
181.30  352.72, subd. 2      356.215, subd. 4d   356.215, subd. 8
181.31  352.87, subd. 3      356.119, subd. 2a   356.315, subd. 2a
181.32  352.91, subd. 5      356.215, subd. 4d   356.215, subd. 8
181.33  352.93, subd. 2      356.119, subd. 5    356.315, subd. 5
181.34  352.95, subd. 1      356.119, subd. 5    356.315, subd. 5
181.35  352B.08, subd. 2     356.119, subd. 6    356.315, subd. 6
181.36  352B.08, subd. 3     356.215, subd. 4d   356.215, subd. 8
182.1   352B.10, subd. 1     356.119, subd. 6    356.315, subd. 6
182.2   352B.26, subd. 3     356.215, subd. 4d   356.215, subd. 8
182.3   352B.30, subd. 4     356.215, subd. 4d   356.215, subd. 8
182.4   352C.031, subd. 4    356.215, subd. 4d   356.215, subd. 8
182.5   352C.033             356.215, subd. 4d   356.215, subd. 8
182.6   353.01, subd. 14     356.215, subd. 4d   356.215, subd. 8
182.7   353.03, subd. 3      356.215, subd. 4,   356.215, subd. 8
182.8                          clause (4)
182.9   353.271, subd. 2     356.215, subd. 4d   356.215, subd. 8
182.10  353.29, subd. 3      356.119, subd. 3    356.315, subd. 3
182.11  353.29, subd. 3      356.119, subd. 4    356.315, subd. 4
182.12  353.29, subd. 3      356.119, subd. 1    356.315, subd. 1
182.13  353.29, subd. 3      356.119, subd. 2    356.315, subd. 2
182.14  353.29, subd. 4      356.371, subd. 3    356.46, subd. 3
182.15  353.37, subd. 3a     356.58              356.47
182.16  353.651, subd. 3     356.119, subd. 6    356.315, subd. 6
182.17  353.656, subd. 1     356.119, subd. 6    356.315, subd. 6
182.18  353.665, subd. 8     356.215, subd. 4d   356.215, subd. 8
182.19  353.71, subd. 2      356.215, subd. 4d   356.215, subd. 8
182.20  353A.08, subd. 1     356.215, subd. 4d   356.215, subd. 8
182.21  353A.08, subd. 2     356.215, subd. 4d   356.215, subd. 8
182.22  353A.09, subd. 2     356.215, subd. 4d   356.215, subd. 8
182.23  353A.09, subd. 5     356.215, subd. 4d   356.215, subd. 8
182.24  353E.04, subd. 3     356.119, subd. 5a   356.315, subd. 5a
182.25  353E.06, subd. 1     356.119, subd. 5a   356.315, subd. 5a
182.26  354.05, subd. 7      356.215, subd. 4d   356.215, subd. 8
182.27  354.07, subd. 1      356.215, subd. 4d   356.215, subd. 8
182.28  354.44, subd. 2      356.215, subd. 4d   356.215, subd. 8
182.29  354.44, subd. 5      356.58              356.47
182.30  354.44, subd. 6      356.119, subd. 1    356.315, subd. 1
182.31  354.44, subd. 6      356.119, subd. 2    356.315, subd. 2
182.32  354.44, subd. 6      356.119, subd. 3    356.315, subd. 3
182.33  354.44               356.119             356.315
182.34  354.45, subd. 2      356.215, subd. 4d   356.215, subd. 8
182.35  354.48, subd. 3      356.215, subd. 4d   356.215, subd. 8
182.36  354.55, subd. 11     356.215, subd. 4d   356.215, subd. 8
183.1   354.63, subd. 2      356.215, subd. 4d   356.215, subd. 8
183.2   354A.011, subd. 3    356.215, subd. 4d   356.215, subd. 8
183.3   354A.026             356.215, subd. 4g   356.215, subd. 11
183.4   354A.105             356.215, subd. 4d   356.215, subd. 8
183.5   354A.12, subd. 1a    356.215, subd. 4d   356.215, subd. 8
183.6   354A.31, subd. 1a    356.371, subd. 3    356.46, subd. 3
183.7   354A.31, subd. 3     356.58              356.47
183.8   354A.31, subd. 4     356.119, subd. 1    356.315, subd. 1
183.9   354A.31, subd. 4     356.119, subd. 2    356.315, subd. 2
183.10  354A.31, subd. 4a    356.119, subd. 1    356.315, subd. 1
183.11  354A.31, subd. 4a    356.119, subd. 2    356.315, subd. 2
183.12  354A.34              356.215, subd. 4d   356.215, subd. 8
183.13  422A.01, subd. 6     356.215, subd. 4d   356.215, subd. 8
183.14  422A.06, subd. 5     356.215, subd. 4d   356.215, subd. 8
183.15  422A.08, subd. 5a    356.215, subd. 4d   356.215, subd. 8
183.16  422A.101, subd. 3    356.865             356.43
183.17  422A.15, subd. 2     356.215, subd. 4d   356.215, subd. 8
183.18  422A.15, subd. 3     356.215, subd. 4d   356.215, subd. 8
183.19  422A.16, subd. 2     356.215, subd. 4d   356.215, subd. 8
183.20  422A.17              356.215, subd. 4d   356.215, subd. 8
183.21  422A.23, subd. 12    356.215, subd. 4d   356.215, subd. 8
183.22  423A.02, subd. 1     356.215, subd. 4,   356.215, subd. 8
183.23                         clause (4)
183.24  490.121, subd. 20    356.215, subd. 4d   356.215, subd. 8
183.25  490.121, subd. 22    356.119, subd. 7    356.315, subd. 7
183.26  490.124, subd. 1     356.119, subd. 7    356.315, subd. 7
183.27  490.124, subd. 1     356.119, subd. 8    356.315, subd. 8
183.28  490.124, subd. 5     356.215, subd. 4d   356.215, subd. 8
183.29     Sec. 53.  [REPEALER.] 
183.30     Subdivision 1.  [REPEALER OF OBSOLETE 
183.31  PROVISIONS.] Minnesota Statutes 2000, sections 356.325; 356.35; 
183.32  356.36; 356.37; 356.38; 356.39; 356.45; 356.451; 356.452; 
183.33  356.453; 356.454; and 356.455, are repealed.  
183.34     Subd. 2.  [REPEALER OF PROVISIONS REORGANIZED.] (a) 
183.35  Minnesota Statutes 2000, sections 356.19; 356.305; 356.306; 
183.36  356.31; 356.371, subdivisions 2 and 3; 356.372; 356.615; 356.71; 
184.1   356.80; 356.81; 356.86; 356.865; 356.88; and 356.89, are 
184.2   repealed. 
184.3      (b) Minnesota Statutes 2001 Supplement, sections 356.371, 
184.4   subdivision 1; and 356.866, are repealed. 
184.5      Subd. 3.  [REPEALER TO RESOLVE REVISOR NOTE.] Laws 1997, 
184.6   chapter 233, article 1, section 58, is repealed. 
184.7      Sec. 54.  [EFFECTIVE DATE.] 
184.8      (a) Sections 1 to 53 are effective July 1, 2002. 
184.9      (b) Section 51 is the continuation of the public pension 
184.10  facility authority previously contained in Minnesota Statutes 
184.11  2000, section 356.89, and may not be considered a grant of 
184.12  authority to build or bond for a second building. 
184.13                             ARTICLE 13
184.14                       JOINT RETIREMENT PLAN
184.15                      BUILDING LEASE AUTHORITY
184.16     Section 1.  Minnesota Statutes 2000, section 356.89, 
184.17  subdivision 3, is amended to read: 
184.18     Subd. 3.  [CONTRACTING PROCEDURES.] (a) The commissioner 
184.19  may enter into a contract for facilities with a contractor to 
184.20  furnish the architectural, engineering, and related services as 
184.21  well as the labor, materials, supplies, equipment, and related 
184.22  construction services on the basis of a request for 
184.23  qualifications and competitive responses received through a 
184.24  request for proposals process that must include the items listed 
184.25  in paragraphs (b) to (i). 
184.26     (b) Before issuing a request for qualifications and a 
184.27  request for proposals, the commissioner, with the assistance of 
184.28  the boards, shall prepare performance criteria and 
184.29  specifications that include: 
184.30     (1) a general floor plan or layout indicating the general 
184.31  dimensions of the public building and space requirements; 
184.32     (2) design criteria for the exterior and site area; 
184.33     (3) performance specifications for all building systems and 
184.34  components to ensure quality and cost efficiencies; 
184.35     (4) conceptual floor plans for systems space; 
184.36     (5) preferred types of interior finishes, styles of 
185.1   windows, lighting and outlets, doors, and features such as 
185.2   built-in counters and telephone wiring; 
185.3      (6) mechanical and electrical requirements; 
185.4      (7) special interior features required; and 
185.5      (8) a completion schedule. 
185.6      (c) The commissioner shall first solicit statements of 
185.7   qualifications from eligible contractors and select more than 
185.8   one qualified contractor based upon experience, technical 
185.9   competence, past performance, capability to perform, and other 
185.10  appropriate facts.  Contractors selected under this process must 
185.11  be, employ, or have as a partner, member, coventurer, or 
185.12  subcontractor, persons licensed and registered under chapter 326 
185.13  to provide the services required to design and complete the 
185.14  project.  The commissioner does not have to select any of the 
185.15  respondents if none reasonably fulfill the criteria set forth in 
185.16  this paragraph. 
185.17     (d) The contractors selected shall be asked to respond to a 
185.18  request for proposals.  Responses must include site plans, 
185.19  design concept, elevation, statement of material to be used, 
185.20  floor layouts, a detailed development budget, and a total cost 
185.21  to complete the project.  The proposal must indicate that the 
185.22  contractor obtained at least two proposals from subcontractors 
185.23  for each item of work and must set forth how the subcontractors 
185.24  were selected.  The commissioner, with the assistance of the 
185.25  boards, shall evaluate the proposals based upon design, cost, 
185.26  quality, aesthetics, and the best overall value to the state 
185.27  pension funds.  The commissioner need not select any of the 
185.28  proposals submitted and reserves the right to reject any and all 
185.29  proposals, and may terminate the process or revise the request 
185.30  for proposals and solicit new proposals if the commissioner 
185.31  determines that the best interests of the pension funds would be 
185.32  better served by doing so.  Proposals submitted are nonpublic 
185.33  data until the contract is awarded. 
185.34     (e) The contractor selected must comply with sections 
185.35  574.26 to 574.261.  Before executing a final contract, the 
185.36  contractor selected shall certify a firm construction price and 
186.1   completion date. 
186.2      (f) The commissioner may consider building sites in the 
186.3   city of St. Paul and surrounding suburbs. 
186.4      (g) Any land, building, or facility leased, constructed, or 
186.5   acquired and any leasehold interest acquired under this section 
186.6   must be held by the state in trust for the three retirement 
186.7   systems as tenants in common.  Each retirement system fund must 
186.8   consider its interest as a fixed asset of its pension fund in 
186.9   accordance with governmental accounting standards. 
186.10     (h) The commissioner may lease to another governmental 
186.11  subdivision, or to a private company under contract with the 
186.12  state board of investment or with the board of directors of the 
186.13  Minnesota state retirement system, whichever applies, to provide 
186.14  deferred compensation services under section 352.96, any portion 
186.15  of the funds' building and lands that is not required for their 
186.16  direct use upon terms and conditions they deem to be in the best 
186.17  interest of the pension funds.  Any income accruing from the 
186.18  rentals must be separately accounted for and utilized to offset 
186.19  ongoing administrative expenses and any excess must be carried 
186.20  forward for future administrative expenses.  The commissioner 
186.21  may also enter into lease agreements for the establishment of 
186.22  satellite offices should the boards find them to be necessary in 
186.23  order to assure their members reasonable access to their 
186.24  services.  The commissioner may lease under section 16B.24 any 
186.25  portion of the facilities not required for the direct use of the 
186.26  boards. 
186.27     (i) The boards shall formulate and adopt a written working 
186.28  agreement that sets forth the nature of each retirement system's 
186.29  ownership interest, the duties and obligations of each system 
186.30  toward the construction, operation, and maintenance costs of its 
186.31  facilities, and identifies one retirement fund to serve as 
186.32  manager for operating and maintenance purposes.  The boards may 
186.33  contract with independent third parties for maintenance-related 
186.34  activities, services, and supplies, and may use the services of 
186.35  the department of administration where economically feasible to 
186.36  do so.  If the boards cannot agree or resolve a dispute about 
187.1   operations or maintenance of the facilities, they may request 
187.2   the commissioner of administration to appoint a representative 
187.3   from the department's real estate management division to serve 
187.4   as arbitrator of the dispute with authority to issue a written 
187.5   resolution of the dispute. 
187.6      Sec. 2.  [EFFECTIVE DATE.] 
187.7      Section 1 is effective July 1, 2002. 
187.8                              ARTICLE 14
187.9                     VOLUNTEER FIREFIGHTER RELIEF
187.10              ASSOCIATIONS SERVICE PENSION ELIGIBILITY
187.11     Section 1.  Minnesota Statutes 2000, section 424A.02, 
187.12  subdivision 1, is amended to read: 
187.13     Subdivision 1.  [AUTHORIZATION.] (a) A relief association, 
187.14  when its articles of incorporation or bylaws so provide, may pay 
187.15  out of the assets of its special fund a service pension to each 
187.16  of its members who:  (1) separates from active service with the 
187.17  fire department; (2) reaches age 50; (3) completes at least five 
187.18  years of active service as an active member of the municipal 
187.19  fire department to which the relief association is associated; 
187.20  (4) completes at least five years of active membership with the 
187.21  relief association before separation from active service; and 
187.22  (5) complies with any additional conditions as to age, service, 
187.23  and membership that are prescribed by the bylaws of the relief 
187.24  association.  A service pension computed under this section may 
187.25  be prorated monthly for fractional years of service, if the 
187.26  bylaws or articles of incorporation of the relief association so 
187.27  provide.  The service pension may be paid whether or not the 
187.28  municipality or nonprofit firefighting corporation to which the 
187.29  relief association is associated qualifies for fire state aid 
187.30  under chapter 69.  
187.31     (b) In the case of a member who has completed at least five 
187.32  years of active service as an active member of the fire 
187.33  department to which the relief association is associated on the 
187.34  date that the relief association is established and 
187.35  incorporated, the requirement that the member complete at least 
187.36  five years of active membership with the relief association 
188.1   before separation from active service may be waived by the board 
188.2   of trustees of the relief association if the member completes at 
188.3   least five years of inactive membership with the relief 
188.4   association before the payment of the service pension.  During 
188.5   the period of inactive membership, the member is not entitled to 
188.6   receive disability benefit coverage, is not entitled to receive 
188.7   additional service credit towards computation of a service 
188.8   pension, and is considered to have the status of a person 
188.9   entitled to a deferred service pension under subdivision 7. 
188.10     (c) No municipality or nonprofit firefighting corporation 
188.11  may delegate the power to take final action in setting a service 
188.12  pension or ancillary benefit amount or level to the board of 
188.13  trustees of the relief association or to approve in advance a 
188.14  service pension or ancillary benefit amount or level equal to 
188.15  the maximum amount or level that this chapter would allow rather 
188.16  than a specific dollar amount or level.  
188.17     (d) No relief association as defined in section 424A.001, 
188.18  subdivision 4, may pay a service pension or disability benefit 
188.19  to a former member of the relief association if that person has 
188.20  not separated from active service with the fire department to 
188.21  which the relief association is directly associated, unless: 
188.22     (1) the person is employed subsequent to retirement by the 
188.23  municipality or the independent nonprofit firefighting 
188.24  corporation, whichever applies, to perform duties within the 
188.25  municipal fire department or corporation on a full-time basis; 
188.26     (2) the governing body of the municipality or of the 
188.27  corporation has filed its determination with the board of 
188.28  trustees of the relief association that the person's experience 
188.29  with and service to the fire department in that person's 
188.30  full-time capacity would be difficult to replace; and 
188.31     (3) the bylaws of the relief association were amended to 
188.32  provide for the payment of a service pension or disability 
188.33  benefit for such full-time employees. 
188.34                             ARTICLE 15
188.35                       ADDITIONAL PROVISIONS
188.36     Section 1.  Laws 1997, chapter 202, article 2, section 61, 
189.1   as amended by Laws 1999, chapter 250, article 1, section 106, 
189.2   and Laws 2001, First Special Session chapter 10, article 2, 
189.3   section 85, is amended to read: 
189.4      Sec. 61.  [VOLUNTARY UNPAID LEAVE OF ABSENCE.] 
189.5      Appointing authorities in state government may allow each 
189.6   employee to take an unpaid leave of absence for up to 320 hours 
189.7   during the period ending June 30, 2003, and an additional 160 
189.8   hours during the period beginning July 1, 2003, and ending June 
189.9   30, 2005.  Each appointing authority approving such a leave 
189.10  shall allow the employee to continue accruing vacation and sick 
189.11  leave, be eligible for paid holidays and insurance benefits, 
189.12  accrue seniority, and accrue service credit in state retirement 
189.13  plans permitting service credits for authorized leaves of 
189.14  absence as if the employee had actually been employed during the 
189.15  time of the leave.  If the leave of absence is for one full pay 
189.16  period or longer, any holiday pay shall be included in the first 
189.17  payroll warrant after return from the leave of absence.  The 
189.18  appointing authority shall attempt to grant requests for unpaid 
189.19  leaves of absence consistent with the need to continue efficient 
189.20  operation of the agency.  However, each appointing authority 
189.21  shall retain discretion to grant or refuse to grant requests for 
189.22  leaves of absence and to schedule and cancel leaves, subject to 
189.23  applicable provisions of collective bargaining agreements and 
189.24  compensation plans. 
189.25     Sec. 2.  [CLARIFICATION OF APPROPRIATION.] 
189.26     Subdivision 1.  [PURPOSE.] This section clarifies treatment 
189.27  extended to an individual specified in Laws 2001, chapter 169, 
189.28  section 5, and is intended to eliminate any potential windfall 
189.29  to the public employees retirement association police and fire 
189.30  plan fund and the public employees retirement association 
189.31  general employees plan fund that may result from that session 
189.32  law. 
189.33     Subd. 2.  [ELIGIBILITY.] The eligible individual is an 
189.34  individual specified in Laws 2001, chapter 169, section 5, who 
189.35  was an assistant commissioner in the department of public safety 
189.36  from April 30, 1994, through May 31, 1998, while on an 
190.1   intergovernmental mobility assignment or assignments to the 
190.2   state from the city of St. Paul police department. 
190.3      Subd. 3.  [SALARY INCREMENT.] The salary increment in any 
190.4   applicable year or portion of a year is the difference between 
190.5   the salary the eligible individual in subdivision 2 received as 
190.6   assistant commissioner and the salary upon which pension 
190.7   contributions were made for that year or portion of a year. 
190.8      Subd. 4.  [BENEFIT COMPUTATIONS.] The retirement benefits, 
190.9   or disability benefits, if applicable, under the public 
190.10  employees retirement association police and fire plan and the 
190.11  public employees retirement association general plan are to be 
190.12  computed based on plan law applicable to the eligible individual 
190.13  under subdivision 2 given the eligible individual's termination 
190.14  of service date or dates, or the disability benefit accrual date 
190.15  or dates as applicable, except for inclusion of salary 
190.16  increments under subdivision 3 for purposes of determining 
190.17  average salary under sections 353.29, subdivision 2, and 
190.18  353.651, subdivision 2. 
190.19     Subd. 5.  [ANNUITY RESERVE COMPARISONS.] The executive 
190.20  director of the public employees retirement association is to 
190.21  determine the increased actuarial reserves, if any, needed to 
190.22  support the annuities from the two applicable public employees 
190.23  retirement association retirement funds on the effective date of 
190.24  retirement or disability from the applicable plans due to this 
190.25  section. 
190.26     Subd. 6.  [COMPARISON TO APPROPRIATION AMOUNTS.] The total 
190.27  amount determined under subdivision 5, if zero or positive, is 
190.28  to be subtracted from the total value of any appropriation 
190.29  received by the public employees retirement association under 
190.30  Laws 2001, chapter 169, section 5, on the date computations 
190.31  under subdivision 5 occur assuming 8.5 percent interest 
190.32  compounded annually from the date the appropriation is received 
190.33  until the computation date under subdivision 5. 
190.34     Subd. 7.  [DISPOSITION OF EXCESS.] The amount determined 
190.35  under subdivision 6, net of the value of any foregone employer 
190.36  contributions, including 8.5 percent interest compounded 
191.1   annually relating to the salary increments under subdivision 3, 
191.2   if any, is to be redeposited within 30 days following the date 
191.3   of that determination in the state's general fund. 
191.4      Subd. 8.  [INTERNAL ALLOCATIONS.] Notwithstanding any law 
191.5   to the contrary, the executive director is authorized to place 
191.6   amounts received, if any, due to Laws 2001, chapter 169, section 
191.7   5, in the public employees retirement association general plan 
191.8   fund or the public employees retirement association police and 
191.9   fire plan fund, or to allocate amounts between these funds as 
191.10  deemed appropriate.  Following the determinations required by 
191.11  this section, the executive director may again reallocate 
191.12  amounts between the two funds to reflect a reasonable allocation 
191.13  of the remaining net appropriation amount. 
191.14     Subd. 9.  [CONTRIBUTION RATIFICATION.] Contributions and 
191.15  interest paid to the association relating to the salary 
191.16  increments referred to in subdivision 3 are authorized for 
191.17  deposit in the public employees retirement association police 
191.18  and fire plan fund and are ratified. 
191.19     Sec. 3.  [LUMP SUM PRE-1973 RETIREE POST RETIREMENT 
191.20  ADJUSTMENT IN CERTAIN INSTANCES.] 
191.21     (a) Notwithstanding any provision of Minnesota Statutes 
191.22  2001 Supplement, section 356.866, or Minnesota Statutes, section 
191.23  356.431, to the contrary, an eligible person described in 
191.24  paragraph (b) may elect to receive the pre-1973 post retirement 
191.25  adjustment in a lump sum payment rather than as an annuity 
191.26  increase.  The election must be made before September 1, 2002, 
191.27  and is irrevocable by the annuitant or benefit recipient.  For 
191.28  the December 2002 lump sum payment, the amount must be the total 
191.29  of the monthly amounts remaining unpaid to the annuitant or the 
191.30  benefit recipient after the election. 
191.31     (b) An eligible person is a person who: 
191.32     (1) was born on December 5, 1908; 
191.33     (2) is the survivor of a deceased annuitant of the general 
191.34  employees retirement plan of the public employees retirement 
191.35  association who was born on March 22, 1904, who retired on May 
191.36  1, 1969, and who died on April 9, 1980; and 
192.1      (3) waived an annuity from the general employees retirement 
192.2   plan of the public employees retirement association in favor of 
192.3   a surviving spouse benefit on May 1, 1980. 
192.4      Sec. 4.  [EFFECTIVE DATE.] 
192.5      Sections 1 to 3 are effective the day following final 
192.6   enactment. 
192.7                              ARTICLE 16 
192.8         COORDINATED PROGRAM OF LEGISLATORS RETIREMENT PLAN; 
192.9                      SOCIAL SECURITY REFERENDUM 
192.10     Section 1.  [3A.15] [COORDINATED PROGRAM OF LEGISLATORS 
192.11  RETIREMENT PLAN.] 
192.12     The coordinated program of the legislators retirement plan 
192.13  is created.  The provisions of sections 3A.01 to 3A.13 apply to 
192.14  the coordinated program. 
192.15     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
192.16  following final enactment. 
192.17     Sec. 2.  [355.629] [SECOND SOCIAL SECURITY REFERENDUM.] 
192.18     Subdivision 1.  [ELECTION OF SOCIAL SECURITY COVERAGE.] Any 
192.19  member of the legislators retirement plan established under 
192.20  chapter 3A who did not elect coverage under an agreement under 
192.21  section 218(d) of the Social Security Act as provided for in 
192.22  section 355.624 is entitled to elect future social security 
192.23  coverage and retroactive coverage for the period consistent with 
192.24  applicable federal law, in a second social security referendum.  
192.25  Any member who so elects shall become a member of the 
192.26  coordinated program of the legislators retirement plan under 
192.27  section 3A.15.  The governor shall set a date for the referendum 
192.28  and shall undertake any duties to amend the state's Social 
192.29  Security Act, section 218 agreement, with the secretary of 
192.30  health and human services. 
192.31     Subd. 2.  [PAYMENT OF RETROACTIVE SOCIAL SECURITY 
192.32  TAXES.] For any service by a legislator who is in office on the 
192.33  date of the agreement or modification of the agreement with the 
192.34  secretary of health and human services, the executive director 
192.35  of the Minnesota state retirement system shall cause to be paid 
192.36  an amount for each legislator, including an amount for 
193.1   retroactive coverage, equal to the taxes which would have been 
193.2   imposed on the legislator and state of Minnesota by the Federal 
193.3   Insurance Contributions Act had the service been covered at the 
193.4   time performed.  This payment shall be computed from the date of 
193.5   retroactive coverage to the date that deductions are first taken 
193.6   from the wages of each legislator for social security coverage.  
193.7   Before making a payment on behalf of a legislator, the executive 
193.8   director must receive from the legislator the funds necessary to 
193.9   make the payment.  Nothing in this section shall require a 
193.10  legislator to elect retroactive social security coverage. 
193.11     Subd. 3.  [DEDUCTION FROM WAGES.] A legislator who elects 
193.12  social security coverage under this section shall have a 
193.13  deduction taken from wages in an amount equal to the employer 
193.14  contribution required by this section. 
193.15     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
193.16  following final enactment. 
193.17                             ARTICLE 17 
193.18               MINNEAPOLIS POLICE OPTIONAL ANNUITIES 
193.19     Section 1.  Minnesota Statutes 2000, section 423B.09, 
193.20  subdivision 6, is amended to read: 
193.21     Subd. 6.  [OPTIONAL ANNUITIES.] A member who is retired or 
193.22  disabled on the effective date of Laws 1997, chapter 233, 
193.23  article 4, section 6, may elect an optional retirement annuity 
193.24  within 60 days of the effective date of Laws 1997, chapter 233, 
193.25  article 4, section 6, instead of the normal retirement annuity.  
193.26  A member who retires or becomes disabled after the effective 
193.27  date of Laws 1997, chapter 233, article 4, section 6, may elect 
193.28  an optional retirement annuity prior to the receipt of any 
193.29  benefits.  The optional retirement annuity may be a 50 percent, 
193.30  a 75 percent, or a 100 percent joint and survivor annuity 
193.31  without reinstatement in the event of the designated beneficiary 
193.32  predeceasing the member or a 50 percent, a 75 percent, or a 100 
193.33  percent joint and survivor annuity with reinstatement in the 
193.34  event of the designated beneficiary predeceasing the member.  
193.35  Optional retirement annuity forms must be actuarially equivalent 
193.36  to the service pension and automatic survivor coverage otherwise 
194.1   payable to the retiring member and the member's 
194.2   beneficiaries.  A member may only designate the member's spouse 
194.3   as the recipient of a joint and survivor annuity and no benefit 
194.4   or annuity may be paid to a person who does not meet the 
194.5   definition of a surviving spouse member under section 423B.01, 
194.6   subdivision 17.  Once selected, the optional annuity is 
194.7   irrevocable. 
194.8      Sec. 2.  [EFFECTIVE DATE.] 
194.9      Section 1 is effective the day following final enactment 
194.10  and applies to all joint annuity options selected by members of 
194.11  the Minneapolis police relief association. 
194.12                             ARTICLE 18 
194.13                       JUDGES RETIREMENT PLAN 
194.14     Section 1.  Laws 2000, chapter 461, article 18, section 10, 
194.15  is amended to read: 
194.16     Sec. 10.  [EFFECTIVE DATE.] 
194.17     Sections 1 to 9 are effective on July 1, 2000 the day 
194.18  following final enactment. 
194.19     <b>[EFFECTIVE DATE.]</b> This section is effective retroactive to 
194.20  May 16, 2000.