1.1                          A bill for an act 
  1.2             relating to retirement; modifying provisions relating 
  1.3             to the state board of investment; providing for early 
  1.4             retirement incentives and certain voluntary employee 
  1.5             reductions; making certain changes to the public 
  1.6             employees retirement association; providing for prior 
  1.7             service credit purchase; making general retirement 
  1.8             changes; providing for volunteer firefighter relief 
  1.9             association changes; providing for certain teachers 
  1.10            retirement changes; amending Minnesota Statutes 2002, 
  1.11            sections 11A.17, subdivision 2; 352.96, subdivision 2; 
  1.12            353.01, subdivisions 2d, 6; 353D.01, subdivision 2; 
  1.13            353D.02, by adding a subdivision; 356.55, subdivision 
  1.14            7; 356B.05; 383B.49; 383B.493; 423C.08; 424A.02, 
  1.15            subdivision 3; Laws 1978, chapter 685, sections 1, as 
  1.16            amended, 2, 3, 6; Laws 1999, chapter 222, article 16, 
  1.17            section 16, as amended; Laws 2000, chapter 461, 
  1.18            article 4, section 4; Laws 2000, chapter 461, article 
  1.19            12, section 20, as amended; Laws 2000, chapter 461, 
  1.20            article 19, section 6; Laws 2001, First Special 
  1.21            Session chapter 10, article 6, section 21, as amended; 
  1.22            repealing Minnesota Statutes 2002, sections 354.541; 
  1.23            354A.109; Laws 1978, chapter 685, section 5. 
  1.24  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.25                             ARTICLE 1
  1.26                     STATE BOARD OF INVESTMENT 
  1.27                              CHANGES 
  1.28     Section 1.  Minnesota Statutes 2002, section 11A.17, 
  1.29  subdivision 2, is amended to read: 
  1.30     Subd. 2.  [ASSETS.] The assets of the supplemental 
  1.31  investment fund shall consist of the money certified and 
  1.32  transmitted to the state board from the participating public 
  1.33  retirement plans and funds or from the board of the Minnesota 
  1.34  state colleges and universities under section 136F.45.  The 
  2.1   assets must be used to purchase investment shares in the 
  2.2   investment accounts specified by the plan or fund.  These 
  2.3   accounts must be valued at least on a monthly basis, but may be 
  2.4   valued more frequently as determined by the state board of 
  2.5   investment. 
  2.6      Sec. 2.  Minnesota Statutes 2002, section 352.96, 
  2.7   subdivision 2, is amended to read: 
  2.8      Subd. 2.  [PURCHASE OF SHARES.] The amount of compensation 
  2.9   so deferred may be used to purchase: 
  2.10     (1) shares in the Minnesota supplemental investment fund 
  2.11  established in section 11A.17 that are selected to be offered 
  2.12  under the plan by the state board of investment; 
  2.13     (2) saving accounts in federally insured financial 
  2.14  institutions; 
  2.15     (3) life insurance contracts, fixed annuity and variable 
  2.16  annuity contracts from companies that are subject to regulation 
  2.17  by the commissioner of commerce; 
  2.18     (4) investment options from open-end investment companies 
  2.19  registered under the federal Investment Company Act of 1940, 
  2.20  United States Code, title 15, sections 80a-1 to 80a-64; 
  2.21     (5) investment options from a firm that is a registered 
  2.22  investment advisor under the Investment Advisers Act of 1940, 
  2.23  United States Code, title 15, section 80b-1 to 80b-21; 
  2.24     (6) investment options of a bank as defined in United 
  2.25  States Code, title 15, section 80b-2, subsection (a), paragraph 
  2.26  (2), or a bank holding company as defined in the Bank Holding 
  2.27  Company Act of 1956, United States Code, title 12, section 1841, 
  2.28  subsection (a), paragraph (1); or 
  2.29     (7) a combination of clause (1), (2), (3), (4), (5), or 
  2.30  (6), as provided by the plan as specified by the participant. 
  2.31     All amounts contributed to the deferred compensation plan 
  2.32  and all earnings on those amounts will be held for the exclusive 
  2.33  benefit of the plan participants and beneficiaries.  These 
  2.34  amounts will be held in trust, in custodial accounts, or in 
  2.35  qualifying annuity contracts as required by federal law and in 
  2.36  accordance with section 356A.06, subdivision 1.  This 
  3.1   subdivision does not authorize an employer contribution, except 
  3.2   as authorized in section 356.24, subdivision 1, paragraph (a), 
  3.3   clause (5).  The state, political subdivision, or other 
  3.4   employing unit is not responsible for any loss that may result 
  3.5   from investment of the deferred compensation. 
  3.6      Sec. 3.  [EFFECTIVE DATE.] 
  3.7      Sections 1 and 2 are effective July 1, 2003. 
  3.8                              ARTICLE 2
  3.9                 EARLY RETIREMENT INCENTIVE PROGRAMS 
  3.10     Section 1.  [APPLICATION.] 
  3.11     Unless otherwise specified, this article applies to 
  3.12  governmental subdivisions as specified in Minnesota Statutes, 
  3.13  section 353.01, subdivision 6, and public employees providing 
  3.14  service to the applicable employer and covered by the public 
  3.15  employees retirement association general plan or police and fire 
  3.16  plan under Minnesota Statutes, chapter 353, or the public 
  3.17  employees retirement association local government correctional 
  3.18  service retirement plan under Minnesota Statutes, chapter 353E. 
  3.19     Sec. 2.  [EMPLOYEE EXCLUSION.] 
  3.20     This article does not apply to any employee who provides 
  3.21  service to more than one governmental subdivision, or who earns 
  3.22  service credit during the time period covered by this article in 
  3.23  any Minnesota public employee plan other than a volunteer fire 
  3.24  plan. 
  3.25     Sec. 3.  [PHASED RETIREMENT.] 
  3.26     (a) This section applies to a public employee who: 
  3.27     (1) on the effective date of this section is regularly 
  3.28  scheduled to work 1,040 or more hours a year in a position 
  3.29  covered by an applicable retirement plan; 
  3.30     (2) enters into an agreement with the governmental 
  3.31  subdivision to work a reduced schedule that is both: 
  3.32     (i) a reduction of at least 25 percent from the number of 
  3.33  regularly scheduled work hours; and 
  3.34     (ii) 1,040 hours or less in the covered position; and 
  3.35     (3) at the time of entering into the agreement under clause 
  3.36  (2), meets the age and service requirements necessary to receive 
  4.1   a retirement benefit from the applicable plan. 
  4.2      (b) Notwithstanding any law to the contrary, for service 
  4.3   under an agreement entered into under paragraph (a), an employee 
  4.4   agrees to terminate public employment meeting requirements of 
  4.5   Minnesota Statutes, section 353.01, subdivision 11a, except that 
  4.6   the minimum 30-day break-in-service requirement under that 
  4.7   subdivision shall not apply, and agrees to reemployment with the 
  4.8   applicable governmental subdivision under terms and conditions 
  4.9   specified in this section.  If an eligible public employee 
  4.10  commences receipt of an annuity from a plan specified in 
  4.11  paragraph (a), the provisions of Minnesota Statutes, section 
  4.12  353.37, governing annuities of reemployed annuitants shall not 
  4.13  apply for the duration of the agreement. 
  4.14     (c) The number of hours worked, the work schedule, and the 
  4.15  duration of the phased retirement employment must be mutually 
  4.16  agreed to by the employee and the governmental subdivision.  The 
  4.17  governmental subdivision may not require a person to waive any 
  4.18  rights under a collective bargaining agreement as a condition of 
  4.19  participation in this section.  The governmental subdivision has 
  4.20  sole discretion to determine if and the extent to which phased 
  4.21  retirement under this section is available to an employee. 
  4.22     (d) Notwithstanding any law to the contrary, a person may 
  4.23  not earn service credit in the public employees retirement 
  4.24  association for employment covered under this section, and 
  4.25  employer contributions and payroll deductions for the retirement 
  4.26  fund must not be made based on earnings of a person working 
  4.27  under this section.  No change shall be made to a monthly 
  4.28  annuity or retirement allowance based on employment under this 
  4.29  section. 
  4.30     (e) A person who works under this section and meets the 
  4.31  definition of public employee under Minnesota Statutes, section 
  4.32  179A.03, subdivision 14, is a member of the appropriate 
  4.33  bargaining unit, is covered by the appropriate collective 
  4.34  bargaining contract or personnel policy, and is eligible for 
  4.35  health care coverage as provided in the collective bargaining 
  4.36  contract or personnel policy. 
  5.1      (f) An agreement under this section may apply only to work 
  5.2   through June 30, 2005. 
  5.3      Sec. 4.  [VOLUNTARY HOUR REDUCTION PLAN.] 
  5.4      (a) This section applies to a public employee who: 
  5.5      (1) on the effective date of this section is regularly 
  5.6   scheduled to work 1,040 or more hours a year in a position 
  5.7   covered by a pension plan administered by the public employees 
  5.8   retirement association; and 
  5.9      (2) enters into an agreement with a governmental 
  5.10  subdivision to work a reduced schedule of 1,040 or less hours in 
  5.11  the covered position. 
  5.12     (b) Notwithstanding any law to the contrary, for service 
  5.13  under an agreement entered into under paragraph (a), 
  5.14  contributions may be made to the applicable plan of the public 
  5.15  employees retirement association as if the employee had not 
  5.16  reduced hours.  The employee must pay the employee contributions 
  5.17  and the employer must pay employer and additional employer 
  5.18  contributions necessary to bring the service credit and salary 
  5.19  up to the level prior to the voluntary reduction in hours.  
  5.20  Contributions must be made in a time and manner prescribed by 
  5.21  the executive director of the public employees retirement 
  5.22  association. 
  5.23     (c) The number of hours worked, the work schedule, and the 
  5.24  duration of the voluntary hour reduction must be mutually agreed 
  5.25  to by the employee and the governmental subdivision.  The 
  5.26  governmental subdivision may not require a person to waive any 
  5.27  rights under a collective bargaining agreement as a condition of 
  5.28  participation under this section.  The governmental subdivision 
  5.29  has sole discretion to determine if and the extent to which 
  5.30  voluntary hour reduction under this section is available to an 
  5.31  employee. 
  5.32     (d) A person who works under this section and meets the 
  5.33  definition of public employee under Minnesota Statutes, section 
  5.34  179A.03, subdivision 14, is a member of an appropriate 
  5.35  bargaining unit, is covered by an appropriate collective 
  5.36  bargaining contract or personnel policy, and is eligible for 
  6.1   health care coverage as provided in a collective bargaining 
  6.2   contract or personnel policy. 
  6.3      (e) An agreement under this section may apply only to work 
  6.4   through June 30, 2005. 
  6.5      Sec. 5.  [VOLUNTARY UNPAID LEAVE OF ABSENCE.] 
  6.6      (a) Governmental subdivisions may allow employees to take 
  6.7   unpaid leaves of absence between June 1, 2003, and June 30, 
  6.8   2005.  Each governmental subdivision approving a leave shall 
  6.9   allow the employee to continue accruing vacation and sick leave, 
  6.10  be eligible for paid holidays and insurance benefits, accrue 
  6.11  seniority, and accrue service credit and credited salary in the 
  6.12  public employees retirement association as if the employee had 
  6.13  actually been employed during the time of leave.  If the leave 
  6.14  of absence is for one full pay period or longer, any holiday pay 
  6.15  shall be included in the first payroll warrant after return from 
  6.16  the leave of absence.  The governmental subdivision shall 
  6.17  attempt to grant requests for the unpaid leaves of absence 
  6.18  consistent with the need to continue efficient operation of the 
  6.19  governmental subdivision.  However, each governmental 
  6.20  subdivision shall retain discretion to grant or refuse to grant 
  6.21  requests for leaves of absence and to schedule and cancel 
  6.22  leaves, subject to the applicable provisions of collective 
  6.23  bargaining agreements and personnel policy. 
  6.24     (b) To receive eligible service credit, the member shall 
  6.25  pay an amount equal to the applicable employee contribution 
  6.26  rates.  If an employee pays the employee contribution for the 
  6.27  period of the leave under this section, the governmental 
  6.28  subdivision must pay the employer contribution and the 
  6.29  additional employer contribution.  The governmental subdivision 
  6.30  may, at its discretion, pay employee, employer, and additional 
  6.31  employer contributions to the public employees retirement 
  6.32  association for the period of leave under this section.  
  6.33  Contributions must be made in a time and manner prescribed by 
  6.34  the executive director of the public employees retirement 
  6.35  association. 
  6.36     Sec. 6.  [DESIGNATION OF POSITIONS; EMPLOYER DISCRETION.] 
  7.1      Before agreeing to an option under this article, a 
  7.2   governmental subdivision must designate the job classifications 
  7.3   or positions within job classifications that qualify for each 
  7.4   option.  The governmental subdivision may modify this 
  7.5   designation at any time.  Designation of positions eligible for 
  7.6   the options and participation of individual employees under this 
  7.7   article are at the sole discretion of the governmental 
  7.8   subdivision.  Implementation of this article by the employer is 
  7.9   not an unfair labor practice under Minnesota Statutes, chapter 
  7.10  179A, or an unfair discriminatory practice under Minnesota 
  7.11  Statutes, chapter 363. 
  7.12     Sec. 7.  [PROGRAM APPLICATION REQUIREMENTS.] 
  7.13     (a) No agreement between an eligible public employee and a 
  7.14  governmental subdivision under this article is effective unless 
  7.15  the employee acknowledges acceptance of the terms of the 
  7.16  agreement in writing on a form prescribed by the public 
  7.17  employees retirement association executive director.  
  7.18     (b) A copy of the signed agreement must be transmitted to 
  7.19  the public employees retirement association executive director 
  7.20  within 30 days after the agreement is executed.  
  7.21     Sec. 8.  [RELATIONSHIP OF SECTIONS.] 
  7.22     (a) An employee covered by a phased retirement agreement 
  7.23  under section 3 may not be covered by the voluntary hour 
  7.24  reduction provisions of section 4 or by a voluntary unpaid leave 
  7.25  of absence agreement under section 5 during the same time period 
  7.26  or any later time period. 
  7.27     (b) An employee covered by the voluntary hour reduction 
  7.28  provisions of section 4: 
  7.29     (1) may not be covered by a phased retirement agreement 
  7.30  under section 3 during the same time period, but may be covered 
  7.31  by a phased retirement agreement under section 3 during a later 
  7.32  time period; and 
  7.33     (2) may be covered by the voluntary leave of absence 
  7.34  provision of section 5 during an earlier or later time period. 
  7.35     Sec. 9.  [GOVERNMENTAL SUBDIVISION LIMITATION.] 
  7.36     Notwithstanding Minnesota Statutes, section 353.01, 
  8.1   subdivision 6, paragraph (b), to the contrary, for purposes of 
  8.2   this article the public employees retirement association is not 
  8.3   a governmental subdivision. 
  8.4      Sec. 10.  [EFFECTIVE DATE.] 
  8.5      Sections 1 to 9 are effective the day following final 
  8.6   enactment. 
  8.7                              ARTICLE 3
  8.8                     PUBLIC EMPLOYEES RETIREMENT
  8.9                         ASSOCIATION CHANGES
  8.10     Section 1.  Minnesota Statutes 2002, section 353.01, 
  8.11  subdivision 2d, is amended to read: 
  8.12     Subd. 2d.  [OPTIONAL MEMBERSHIP.] (a) Membership in the 
  8.13  association is optional by action of the individual employee for 
  8.14  the following public employees who meet the conditions set forth 
  8.15  in subdivision 2a: 
  8.16     (1) members of the coordinated plan who are also employees 
  8.17  of labor organizations as defined in section 353.017, 
  8.18  subdivision 1, for their employment by the labor organization 
  8.19  only if they elect to have membership under section 353.017, 
  8.20  subdivision 2; 
  8.21     (2) persons who are elected or persons who are appointed to 
  8.22  elected positions other than local governing body elected 
  8.23  positions who elect to participate by filing a written election 
  8.24  for membership; 
  8.25     (3) members of the association who are appointed by the 
  8.26  governor to be a state department head and who elect not to be 
  8.27  covered by the general state employees retirement plan of the 
  8.28  Minnesota state retirement system under section 352.021; and 
  8.29     (4) city managers as defined in section 353.028, 
  8.30  subdivision 1, who do not elect to be excluded from membership 
  8.31  in the association under section 353.028, subdivision 2; and 
  8.32     (5) employees of the port authority of the city of St. Paul 
  8.33  who were at least age 45 on January 1, 2003, and who elect to 
  8.34  participate by filing a written election for membership. 
  8.35     (b) Membership in the association is optional by action of 
  8.36  the governmental subdivision for the employees of the following 
  9.1   governmental subdivisions under the conditions specified: 
  9.2      (1) the Minnesota association of townships if the board of 
  9.3   the association, at its option, certifies to the executive 
  9.4   director that its employees are to be included for purposes of 
  9.5   retirement coverage, in which case the status of the association 
  9.6   as a participating employer is permanent; and 
  9.7      (2) a county historical society if the county in which the 
  9.8   historical society is located, at its option, certifies to the 
  9.9   executive director that the employees of the historical society 
  9.10  are to be county employees for purposes of retirement coverage 
  9.11  under this chapter.  The status as a county employee must be 
  9.12  accorded to all similarly situated county historical society 
  9.13  employees and, once established, must continue as long as a 
  9.14  person is an employee of the county historical society. 
  9.15     (c) For employees who are covered by paragraph (a), clause 
  9.16  (1), (2), or (3), or covered by paragraph (b), if the necessary 
  9.17  membership election is not made, the employee is excluded from 
  9.18  retirement coverage under this chapter.  For employees who are 
  9.19  covered by paragraph (a), clause (4), if the necessary election 
  9.20  is not made, the employee must become a member and have 
  9.21  retirement coverage under this chapter.  The option to become a 
  9.22  member, once exercised under this subdivision, may not be 
  9.23  withdrawn until termination of public service as defined under 
  9.24  subdivision 11a. 
  9.25     Sec. 2.  Minnesota Statutes 2002, section 353.01, 
  9.26  subdivision 6, is amended to read: 
  9.27     Subd. 6.  [GOVERNMENTAL SUBDIVISION.] (a) "Governmental 
  9.28  subdivision" means a county, city, town, school district within 
  9.29  this state, or a department or unit of state government, or any 
  9.30  public body whose revenues are derived from taxation, fees, 
  9.31  assessments or from other sources. 
  9.32     (b) Governmental subdivision also means the public 
  9.33  employees retirement association, the league of Minnesota 
  9.34  cities, the association of metropolitan municipalities, public 
  9.35  hospitals owned or operated by, or an integral part of, a 
  9.36  governmental subdivision or governmental subdivisions, the 
 10.1   association of Minnesota counties, the metropolitan intercounty 
 10.2   association, the Minnesota municipal utilities association, the 
 10.3   metropolitan airports commission, the Minneapolis employees 
 10.4   retirement fund for employment initially commenced after June 
 10.5   30, 1979, the range association of municipalities and schools, 
 10.6   soil and water conservation districts, economic development 
 10.7   authorities created or operating under sections 469.090 to 
 10.8   469.108, the port authority of the city of St. Paul, the Spring 
 10.9   Lake Park fire department, incorporated, the Red Wing 
 10.10  environmental learning center, and the Dakota county 
 10.11  agricultural society. 
 10.12     (c) Governmental subdivision does not mean any municipal 
 10.13  housing and redevelopment authority organized under the 
 10.14  provisions of sections 469.001 to 469.047; or any port authority 
 10.15  organized under sections 469.048 to 469.089 other than the port 
 10.16  authority of the city of St. Paul; or any hospital district 
 10.17  organized or reorganized prior to July 1, 1975, under sections 
 10.18  447.31 to 447.37 or the successor of the district, nor the 
 10.19  Minneapolis community development agency.  
 10.20     Sec. 3.  Minnesota Statutes 2002, section 353D.01, 
 10.21  subdivision 2, is amended to read: 
 10.22     Subd. 2.  [ELIGIBILITY.] (a) Eligibility to participate in 
 10.23  the defined contribution plan is available to: 
 10.24     (1) elected local government officials of a governmental 
 10.25  subdivision who elect to participate in the plan under section 
 10.26  353D.02, subdivision 1, and who, for the elected service 
 10.27  rendered to a governmental subdivision, are not members of the 
 10.28  public employees retirement association within the meaning of 
 10.29  section 353.01, subdivision 7; 
 10.30     (2) physicians who, if they did not elect to participate in 
 10.31  the plan under section 353D.02, subdivision 2, would meet the 
 10.32  definition of member under section 353.01, subdivision 7; 
 10.33     (3) basic and advanced life support emergency medical 
 10.34  service personnel employed by or providing services for any 
 10.35  public ambulance service or privately operated ambulance service 
 10.36  that receives an operating subsidy from a governmental entity 
 11.1   that elects to participate under section 353D.02, subdivision 3; 
 11.2   and 
 11.3      (4) members of a municipal rescue squad associated with 
 11.4   Litchfield in Meeker county, or of a county rescue squad 
 11.5   associated with Kandiyohi county, if an independent nonprofit 
 11.6   rescue squad corporation, incorporated under chapter 317A, 
 11.7   performing emergency management services, and if not affiliated 
 11.8   with a fire department or ambulance service and if its members 
 11.9   are not eligible for membership in that fire department's or 
 11.10  ambulance service's relief association or comparable pension 
 11.11  plan; and 
 11.12     (5) employees of the port authority of the city of St. Paul 
 11.13  who elect to participate in the plan under section 353D.02, 
 11.14  subdivision 5, and who are not members of the public employees 
 11.15  retirement association under section 353.01, subdivision 7. 
 11.16     (b) For purposes of this chapter, an elected local 
 11.17  government official includes a person appointed to fill a 
 11.18  vacancy in an elective office.  Service as an elected local 
 11.19  government official only includes service for the governmental 
 11.20  subdivision for which the official was elected by the 
 11.21  public-at-large.  Service as an elected local government 
 11.22  official ceases and eligibility to participate terminates when 
 11.23  the person ceases to be an elected official.  An elected local 
 11.24  government official does not include an elected county sheriff.  
 11.25     (c) Elected local government officials, physicians, first 
 11.26  response personnel and emergency medical service personnel, and 
 11.27  rescue squad personnel Individuals otherwise eligible to 
 11.28  participate in the plan under this subdivision who are currently 
 11.29  covered by a public or private pension plan because of their 
 11.30  employment or provision of services are not eligible to 
 11.31  participate in the public employees defined contribution plan.  
 11.32     (d) A former participant is a person who has terminated 
 11.33  eligible employment or service and has not withdrawn the value 
 11.34  of the person's individual account. 
 11.35     Sec. 4.  Minnesota Statutes 2002, section 353D.02, is 
 11.36  amended by adding a subdivision to read: 
 12.1      Subd. 5.  [ST. PAUL PORT AUTHORITY PERSONNEL.] Employees of 
 12.2   the port authority of the city of St. Paul who do not elect to 
 12.3   participate in the general employees retirement plan may elect 
 12.4   to participate in the plan by filing a membership application on 
 12.5   a form prescribed by the executive director of the association 
 12.6   authorizing contributions to be deducted from the employee's 
 12.7   salary.  Participation begins on the first day of the pay period 
 12.8   for which the contributions were deducted or, if pay period 
 12.9   coverage dates are not provided, the date on which the 
 12.10  membership application or the contributions are received in the 
 12.11  office of the association, whichever is received first, if the 
 12.12  membership application is received by the association within 60 
 12.13  days of the receipt of the contributions.  An election to 
 12.14  participate in the plan is irrevocable.  
 12.15     Sec. 5.  [RED WING ENVIRONMENTAL LEARNING CENTER.] 
 12.16     (a) The legislature finds that the Red Wing environmental 
 12.17  learning center has a long and very close relationship with 
 12.18  independent school district No. 256, Red Wing, that Red Wing 
 12.19  environmental learning center employees have been treated as 
 12.20  independent school district No. 256, Red Wing, employees for 
 12.21  retirement coverage purposes for 33 years, and that the current 
 12.22  learning center employees would suffer a significant loss in 
 12.23  their pension benefit coverage if their membership in the 
 12.24  general employees retirement plan of the public employees 
 12.25  retirement association was disrupted. 
 12.26     (b) Notwithstanding the provisions of any other law to the 
 12.27  contrary, independent school district No. 256, Red Wing, may 
 12.28  certify to the executive director of the public employees 
 12.29  retirement association that employees of the Red Wing 
 12.30  environmental learning center are considered school district 
 12.31  employees solely for purposes of retirement coverage by the 
 12.32  general employees retirement plan under Minnesota Statutes, 
 12.33  chapter 353.  This status must be accorded to all similarly 
 12.34  situated Red Wing environmental learning center employees. 
 12.35     Sec. 6.  [PERA-GENERAL; PRIOR ST. PAUL PORT AUTHORITY 
 12.36  SERVICE CREDIT PURCHASE.] 
 13.1      Subdivision 1.  [ELIGIBILITY.] A full-time salaried 
 13.2   employee or a permanent part-time salaried employee of the port 
 13.3   authority of the city of St. Paul who was employed by the port 
 13.4   authority during all or part of the period from July 1, 1993, to 
 13.5   July 1, 2003, and who is a member of the general employees 
 13.6   retirement plan of the public employees retirement association 
 13.7   may purchase allowable service credit from the general employees 
 13.8   retirement plan. 
 13.9      Subd. 2.  [PURCHASABLE SERVICE; MAXIMUM.] (a) The service 
 13.10  credit that is purchasable under subdivision 1 is a period or 
 13.11  periods of employment by the port authority of the city of St. 
 13.12  Paul that would have been eligible service for coverage by the 
 13.13  general employees retirement plan of the public employees 
 13.14  retirement association if the service had been rendered after 
 13.15  July 1, 2003. 
 13.16     (b) The maximum period of allowable service credit in the 
 13.17  general employees retirement plan of the public employees 
 13.18  retirement association for purchase under this section is ten 
 13.19  years. 
 13.20     Subd. 3.  [PURCHASE PAYMENT REQUIREMENT.] (a) To purchase 
 13.21  the service credit, the payment amount must be calculated under 
 13.22  Minnesota Statutes, section 356.55. 
 13.23     (b) Notwithstanding any provision of Minnesota Statutes, 
 13.24  section 356.55, to the contrary, the prior service credit 
 13.25  purchase payment may be made in whole or in part on an 
 13.26  institution-to-institution basis from a plan qualified under the 
 13.27  federal Internal Revenue Code, sections 401(a), 401(k), or 
 13.28  414(h), or from an annuity qualified under the federal Internal 
 13.29  Revenue Code, section 403, or from a deferred compensation plan 
 13.30  under the federal Internal Revenue Code, section 457, to the 
 13.31  extent permitted by the applicable federal law.  In no event may 
 13.32  a prior service credit purchase transfer be paid directly to the 
 13.33  person purchasing the service. 
 13.34     Subd. 4.  [DOCUMENTATION; SERVICE CREDIT GRANT.] (a) An 
 13.35  eligible person described in subdivision 1 must provide any 
 13.36  documentation related to eligibility to make this service credit 
 14.1   purchase required by the executive director of the public 
 14.2   employees retirement association. 
 14.3      (b) Allowable service credit for the purchase period or 
 14.4   periods must be granted by the general employees retirement plan 
 14.5   of the public employees retirement association on behalf of the 
 14.6   eligible person upon receipt of the prior service credit 
 14.7   purchase payment amount. 
 14.8      Subd. 5.  [SUNSET.] Authority to purchase service credit 
 14.9   under this section expires on December 31, 2004. 
 14.10     Sec. 7.  [PRIOR SERVICE; VESTING.] 
 14.11     For purposes of vesting under section 353.29, subdivision 
 14.12  1, only, a full-time salaried employee or a permanent part-time 
 14.13  salaried employee of the port authority of the city of St. Paul 
 14.14  who was employed by the port authority on July 1, 2003, and who 
 14.15  is a member of the general employees retirement plan of the 
 14.16  public employees retirement association may use months of 
 14.17  employment with the port authority before that date.  This 
 14.18  service may not be used to calculate a retirement annuity or a 
 14.19  disability benefit provided for under Minnesota Statutes, 
 14.20  chapter 353.  
 14.21     Sec. 8.  [DEFINED CONTRIBUTION PLAN; ONETIME ELECTION.] 
 14.22     Employees of the port authority of the city of St. Paul who 
 14.23  do not exercise the right to become members of the general 
 14.24  employees retirement plan of the public employees retirement 
 14.25  association under section 1 may, by onetime election, choose to 
 14.26  participate in the public employees retirement association's 
 14.27  defined contribution plan under Minnesota Statutes, sections 
 14.28  353D.01 to 353D.12.  The election is irrevocable. 
 14.29     Sec. 9.  [EFFECTIVE DATE.] 
 14.30     (a) Section 2 with respect to the Red Wing environmental 
 14.31  learning center, and section 5 are effective the day after the 
 14.32  school board of independent school district No. 256, Red Wing, 
 14.33  and its chief clerical officer timely complete their compliance 
 14.34  with Minnesota Statutes, section 645.021, subdivisions 2 and 3, 
 14.35  and certification to the executive director of the public 
 14.36  employees retirement association. 
 15.1      (b) Section 2, with respect to the port authority of the 
 15.2   city of St. Paul, is effective the day following final enactment 
 15.3      (c) Sections 1, 3, 4, 5, 7, and 8 are effective the day 
 15.4   following final enactment. 
 15.5      (d) Coverage by the general employees retirement plan of 
 15.6   the public employees retirement association under sections 1 and 
 15.7   2 commences July 1, 2003. 
 15.8                              ARTICLE 4 
 15.9                    PRIOR SERVICE CREDIT PURCHASE 
 15.10                             PROVISIONS 
 15.11     Section 1.  Minnesota Statutes 2002, section 356.55, 
 15.12  subdivision 7, is amended to read: 
 15.13     Subd. 7.  [EXPIRATION OF PURCHASE PAYMENT DETERMINATION 
 15.14  PROCEDURE.] (a) This section expires and is repealed on July 
 15.15  1, 2003 2004. 
 15.16     (b) Authority for any public pension plan to accept a prior 
 15.17  service credit payment that is calculated in a timely fashion 
 15.18  under this section expires on October 1, 2003 2004. 
 15.19     Sec. 2.  Laws 1999, chapter 222, article 16, section 16, as 
 15.20  amended by Laws 2002, chapter 392, article 7, section 1, is 
 15.21  amended to read: 
 15.22     Sec. 16.  [REPEALER.] 
 15.23     Sections 1 to 13 are repealed on May 16, 2003 2004. 
 15.24     Sec. 3.  Laws 2000, chapter 461, article 4, section 4, is 
 15.25  amended to read: 
 15.26     Sec. 4.  [EFFECTIVE DATE; SUNSET REPEALER.] 
 15.27     (a) Sections 1, 2, and 3 are effective on the day following 
 15.28  final enactment. 
 15.29     (b) Sections 1, 2, and 3 are repealed on May 16, 2003 2004. 
 15.30     Sec. 4.  Laws 2000, chapter 461, article 12, section 20, as 
 15.31  amended by Laws 2002, chapter 392, article 7, section 2, is 
 15.32  amended to read: 
 15.33     Sec. 20.  [EFFECTIVE DATE.] 
 15.34     (a) Sections 4, 5, and 11 to 20 are effective on the day 
 15.35  following final enactment. 
 15.36     (b) Sections 1, 2, 3, and 6 to 10 are effective on the day 
 16.1   following final enactment and apply retroactively to a faculty 
 16.2   member of the Lake Superior College who was granted an extended 
 16.3   leave of absence under article 19, section 4, of the united 
 16.4   technical college educators master agreement for the 1999-2000 
 16.5   academic year prior to March 20, 2000. 
 16.6      (c) Sections 5, 11, and 14, paragraph (c), expire on May 
 16.7   16, 2003 2004.  
 16.8      Sec. 5.  Laws 2001, First Special Session chapter 10, 
 16.9   article 6, section 21, as amended by Laws 2002, chapter 392, 
 16.10  article 7, section 3, is amended to read: 
 16.11     Sec. 21.  [EXPIRATION DATE.] 
 16.12     (a) The amendments in sections 1, 2, 3, 4, 10, 12, 16, 17, 
 16.13  18, 19, and 20 expire May 16, 2003 2004. 
 16.14     (b) Sections 9 and 15 expire May 16, 2003 2004. 
 16.15     Sec. 6.  [PERA-GENERAL; SERVICE CREDIT PURCHASE 
 16.16  AUTHORIZED.] 
 16.17     (a) Notwithstanding any provision of law to the contrary, 
 16.18  an eligible person described in paragraph (b), (c), or (d) is 
 16.19  authorized to purchase allowable service credit from the general 
 16.20  employees retirement plan of the public employees retirement 
 16.21  association under Minnesota Statutes, section 356.55 or 356.551, 
 16.22  for the applicable period of prior employment as a council 
 16.23  member of the city of St. Louis Park which was not credited by 
 16.24  the general employees retirement plan of the public employees 
 16.25  retirement association as indicated in paragraph (e). 
 16.26     (b) An eligible person is a person who: 
 16.27     (1) is a current member of the St. Louis Park city council 
 16.28  and is a current member of the general employees retirement plan 
 16.29  of the public employees retirement association; 
 16.30     (2) was born on September 26, 1941; 
 16.31     (3) became a St. Louis Park city council member on January 
 16.32  1, 1996; and 
 16.33     (4) was not a member of the general employees retirement 
 16.34  plan of the public employees retirement association for the 
 16.35  period January 1, 1996, to January 29, 2000. 
 16.36     (c) An eligible person is a person who: 
 17.1      (1) is a current member of the St. Louis Park city council 
 17.2   and is a current member of the general employees retirement plan 
 17.3   of the public employees retirement association; 
 17.4      (2) was born on October 8, 1949; 
 17.5      (3) became a St. Louis Park city council member on June 8, 
 17.6   1999; and 
 17.7      (4) was not a member of the general employees retirement 
 17.8   plan of the public employees retirement association for the 
 17.9   period June 8, 1999, to January 12, 2002. 
 17.10     (d) An eligible person is a person who: 
 17.11     (1) is a current member of the St. Louis Park city council 
 17.12  and is a current member of the general employees retirement plan 
 17.13  of the public employees retirement association; 
 17.14     (2) was born on June 4, 1964; 
 17.15     (3) became a St. Louis Park city council member on November 
 17.16  18, 1997; and 
 17.17     (4) was not a member of the general employees retirement 
 17.18  plan of the public employees retirement association for the 
 17.19  period November 18, 1997, to March 9, 2002. 
 17.20     (e) The allowable service credit purchase period is limited 
 17.21  to the period of St. Louis Park city council service that was 
 17.22  not covered by the general employees retirement plan of the 
 17.23  public employees retirement association.  
 17.24     (f) The eligible person must provide all relevant 
 17.25  documentation of the applicability of the requirements set forth 
 17.26  in paragraph (b), (c), or (d) and any other applicable 
 17.27  information that the executive director of the public employees 
 17.28  retirement association may request. 
 17.29     (g) Allowable service credit for the purchase period must 
 17.30  be granted by the general employees retirement plan of the 
 17.31  public employees retirement association to the eligible person 
 17.32  upon receipt of the prior service credit purchase payment amount.
 17.33     (h) Notwithstanding Minnesota Statutes, section 356.55, 
 17.34  subdivision 5, or 356.551, subdivision 2, whichever applies, the 
 17.35  city of St. Louis Park is not permitted to pay any portion of 
 17.36  the service credit purchase payment amount. 
 18.1      (i) The prior service credit purchase authority expires on 
 18.2   July 1, 2004, or on the date of the termination of active St. 
 18.3   Louis Park city council service by the eligible person, 
 18.4   whichever occurs earlier. 
 18.5      Sec. 7.  [REPEALER.] 
 18.6      Minnesota Statutes 2002, sections 354.541 and 354A.109, are 
 18.7   repealed May 16, 2004. 
 18.8      Sec. 8.  [EFFECTIVE DATE.] 
 18.9      Sections 1 to 7 are effective the day following final 
 18.10  enactment.  
 18.11                             ARTICLE 5
 18.12                     GENERAL RETIREMENT CHANGES
 18.13     Section 1.  Minnesota Statutes 2002, section 356B.05, is 
 18.14  amended to read: 
 18.15     356B.05 [PUBLIC PENSION ADMINISTRATION LEGISLATION.] 
 18.16     (a) Proposed administrative legislation recommended by or 
 18.17  on behalf of the Minnesota state retirement system, the public 
 18.18  employees retirement association, the teachers retirement 
 18.19  association, the Minneapolis employees retirement fund, or a 
 18.20  first class city teachers retirement fund association, or the 
 18.21  Minnesota state colleges and universities system must be 
 18.22  presented to the legislative commission on pensions and 
 18.23  retirement, the state and local governmental operations 
 18.24  committee of the senate, and the governmental operations and 
 18.25  veterans affairs policy committee of the house of 
 18.26  representatives on or before October 1 of each year in order for 
 18.27  the proposed administrative legislation to be acted upon during 
 18.28  the upcoming legislative session.  The executive director or the 
 18.29  deputy executive director of the legislative commission on 
 18.30  pensions and retirement shall provide written comments on the 
 18.31  proposed administrative provisions to the public pension plans 
 18.32  by November 15 of each year. 
 18.33     (b) Proposed administrative legislation recommended by or 
 18.34  on behalf of a public employee pension plan or system under 
 18.35  paragraph (a) must address provisions: 
 18.36     (1) authorizing allowable service credit for leaves of 
 19.1   absence and related circumstances; 
 19.2      (2) governing offsets or deductions from the amount of 
 19.3   disability benefits; 
 19.4      (3) authorizing the purchase of allowable service credit 
 19.5   for prior uncredited periods; 
 19.6      (4) governing subsequent employment earnings by reemployed 
 19.7   annuitants; and 
 19.8      (5) authorizing retroactive effect for retirement annuity 
 19.9   or benefit applications. 
 19.10     (c) Where possible and desirable, taking into account the 
 19.11  differences among the public pension plans in existing law and 
 19.12  the unique characteristics of the individual public pension fund 
 19.13  memberships, uniform provisions relating to paragraph (b) for 
 19.14  all applicable public pension plans must be presented for 
 19.15  consideration during the legislative session.  Supporting 
 19.16  documentation setting forth the policy rationale for each set of 
 19.17  uniform provisions must accompany the proposed administrative 
 19.18  legislation. 
 19.19     Sec. 2.  [ACTUARIAL STUDY OF COSTS TO RESTRUCTURE TEACHER 
 19.20  PLANS.] 
 19.21     Subdivision 1.  [STUDY MANDATED.] The actuary retained by 
 19.22  the legislative commission on pensions and retirement shall 
 19.23  prepare an additional actuarial valuation report, using the 
 19.24  results of the 2003 actuarial valuation reports prepared under 
 19.25  Minnesota Statutes, section 356.215, that considers the 
 19.26  feasibility of restructuring the Minnesota teachers retirement 
 19.27  association, the Minneapolis teachers retirement fund 
 19.28  association, the St. Paul teachers retirement fund association, 
 19.29  and the Duluth teachers retirement plan and fund association 
 19.30  into a new restructured fund. 
 19.31     Subd. 2.  [CONTENTS OF STUDY.] The actuarial valuation 
 19.32  report must be based on the proposals put forth in the report 
 19.33  mandated by the legislature in Laws 2001, First Special Session 
 19.34  chapter 10, article 11, section 20, and filed February 15, 2002, 
 19.35  including changes to the postretirement adjustment, benefits, 
 19.36  and restructuring administrative costs and including asset 
 20.1   transfers. 
 20.2      Subd. 3.  [INFORMATION PROVIDED.] The executive director of 
 20.3   the teachers retirement association, the executive secretary of 
 20.4   the Duluth teachers retirement fund association, the executive 
 20.5   director of the St. Paul teachers retirement fund association, 
 20.6   and the executive director of the Minneapolis teachers 
 20.7   retirement fund association must consult with the task force 
 20.8   established under Laws 2001, First Special Session chapter 10, 
 20.9   article 11, section 20, and must provide the commission-retained 
 20.10  actuary with all necessary information requested for the 
 20.11  preparation of this report. 
 20.12     Subd. 4.  [COSTS.] The cost of the actuarial valuation 
 20.13  report mandated in this section will be paid by the pension 
 20.14  funds named in this legislation.  The cost must be allocated 
 20.15  equally between the four pension funds.  The executive director 
 20.16  of the Minneapolis teachers retirement fund association shall 
 20.17  serve as the fiscal agent for this study, shall pay its cost, 
 20.18  and shall be reimbursed by the other three retirement funds for 
 20.19  their appropriate share. 
 20.20     Subd. 5.  [FILING DATE.] The report must be filed by 
 20.21  January 15, 2004, with the chair of the legislative commission 
 20.22  on pensions and retirement, the chair of the senate committee on 
 20.23  state and local government operations, and the chair of the 
 20.24  house committee on government operations and veterans affairs 
 20.25  policy. 
 20.26     Sec. 3.  [EFFECTIVE DATE.] 
 20.27     Sections 1 and 2 are effective the day following final 
 20.28  enactment. 
 20.29                             ARTICLE 6 
 20.30                  MINNEAPOLIS FIREFIGHTERS RELIEF 
 20.31                        ASSOCIATION CHANGES 
 20.32     Section 1.  Minnesota Statutes 2002, section 423C.08, is 
 20.33  amended to read: 
 20.34     423C.08 [MEMBER CONTRIBUTION REFUND TO BENEFICIARY UPON 
 20.35  DEATH.] 
 20.36     If an active, deferred, or retired member of the 
 21.1   association dies and no survivor benefit is payable, the 
 21.2   designated beneficiary of the decedent or, if none, the legal 
 21.3   representative of the estate of the decedent is entitled, upon 
 21.4   application, to a refund.  The refund shall be an amount equal 
 21.5   to the member contributions to the credit of the decedent, plus 
 21.6   interest on those contributions at an annual compounded rate of 
 21.7   five percent from the first day of the month following the date 
 21.8   of the contribution to the first day of the month following the 
 21.9   date of death of the decedent, reduced by the sum of any service 
 21.10  pension or disability benefit previously paid by the fund to the 
 21.11  decedent. 
 21.12     Sec. 2.  [INTENT.] 
 21.13     Section 1 is intended to bring the Minneapolis firefighters 
 21.14  relief association's statutory provision which provides for a 
 21.15  refund of member contributions where the decedent does not leave 
 21.16  a surviving spouse or children in conformance with Minnesota 
 21.17  Statutes 2002, section 423A.18. 
 21.18     Sec. 3.  [EFFECTIVE DATE.] 
 21.19     Section 1 is effective retroactively from September 25, 
 21.20  2001.  Section 2 is effective the day following final enactment. 
 21.21                             ARTICLE 7 
 21.22               PLYMOUTH VOLUNTEER FIREFIGHTER RELIEF 
 21.23                        ASSOCIATION CHANGES 
 21.24     Section 1.  Laws 1978, chapter 685, section 1, as amended 
 21.25  by Laws 1979, chapter 201, section 41, is amended to read: 
 21.26     Section 1.  [PLYMOUTH VOLUNTEER FIREFIGHTERS' RELIEF 
 21.27  ASSOCIATION.] 
 21.28     The bylaws of the Plymouth firefighter's relief association 
 21.29  may be amended to provide for payment of a disability pension in 
 21.30  an amount equal to $8.50 per month per year of service, to a 
 21.31  maximum of $255 per month consistent with the ancillary benefit 
 21.32  requirements specified in Minnesota Statutes, section 424A.02, 
 21.33  subdivision 9, to a firefighter qualified pursuant to determined 
 21.34  to be disabled, as defined in the bylaws of the association and 
 21.35  under procedures specified in those bylaws.  No member shall be 
 21.36  entitled to draw both a disability pension and a service pension.
 22.1      Sec. 2.  Laws 1978, chapter 685, section 2, is amended to 
 22.2   read: 
 22.3      Sec. 2.  The Plymouth firefighter's relief association may 
 22.4   provide for a benefit to the surviving spouse of a volunteer 
 22.5   firefighter who died, providing that the surviving spouse 
 22.6   qualifies under the terms of the bylaws, such benefit to be paid 
 22.7   as the bylaws of the association may provide, except that the 
 22.8   bylaws may not provide for a spouse's benefit of more than 
 22.9   $127.50 per month, and provided the benefit shall cease as of 
 22.10  the date of the spouse's remarriage and the benefit is 
 22.11  consistent with ancillary benefit requirements specified in 
 22.12  Minnesota Statutes, section 424A.02, subdivision 9. 
 22.13     Sec. 3.  Laws 1978, chapter 685, section 3, is amended to 
 22.14  read: 
 22.15     Sec. 3.  The Plymouth firefighter's relief association may 
 22.16  pay a pension for the children of deceased members, as the 
 22.17  association's bylaws may provide, consistent with ancillary 
 22.18  benefit requirements specified in Minnesota Statutes, section 
 22.19  424A.02, subdivision 9. 
 22.20     Sec. 4.  Laws 1978, chapter 685, section 6, is amended to 
 22.21  read: 
 22.22     Sec. 6.  (a) The bylaws of the Plymouth firefighter's 
 22.23  relief association may further provide that when any active or 
 22.24  deferred member of the association or any pensioner who is a 
 22.25  former member disabilitant or service pension recipient dies, 
 22.26  there may be paid a death or funeral benefit to defray or assist 
 22.27  the family of the deceased with funeral expenses. 
 22.28     (b) A benefit paid under this section due to the death of 
 22.29  an active or deferred member must conform to Minnesota Statutes, 
 22.30  section 424A.02, subdivision 9. 
 22.31     (c) A death or funeral benefit may be paid under this 
 22.32  section to the family of a deceased disabilitant or service 
 22.33  pensioner notwithstanding Minnesota Statutes, section 424A.02, 
 22.34  subdivision 9, providing that liabilities relating to this 
 22.35  benefit are recognized in determinations of actuarial condition 
 22.36  and funding costs, as determined under section 69.772 or 69.773, 
 23.1   whichever is applicable.  Notwithstanding any law to the 
 23.2   contrary, the association is authorized to use a load factor or 
 23.3   factors to recognize liabilities relating to funeral or death 
 23.4   benefits paid to the family of a deceased disabilitant or 
 23.5   service pensioner.  Benefits are not payable under this 
 23.6   paragraph if the city council does not approve the load factor 
 23.7   or factors used in determinations of actuarial conditions and 
 23.8   funding costs. 
 23.9      Sec. 5.  [REPEALER.] 
 23.10     Laws 1978, chapter 685, section 5, is repealed.  
 23.11     Sec. 6.  [EFFECTIVE DATE.] 
 23.12     Sections 1 to 5 are effective on the day after the date on 
 23.13  which the Plymouth city council and the chief clerical officer 
 23.14  of the city of Plymouth complete in a timely manner their 
 23.15  compliance with Minnesota Statutes, section 645.021, 
 23.16  subdivisions 2 and 3. 
 23.17                             ARTICLE 8 
 23.18                    VOLUNTEER FIREFIGHTER RELIEF
 23.19                        ASSOCIATION CHANGES
 23.20     Section 1.  Minnesota Statutes 2002, section 424A.02, 
 23.21  subdivision 3, is amended to read: 
 23.22     Subd. 3.  [FLEXIBLE SERVICE PENSION MAXIMUMS.] (a) Annually 
 23.23  on or before August 1 of each year as part of the certification 
 23.24  of the financial requirements and minimum municipal 
 23.25  obligation made pursuant to determined under section 69.772, 
 23.26  subdivision 4, or 69.773, subdivision 5, as applicable, the 
 23.27  secretary or some other official of the relief association 
 23.28  designated in the bylaws of each relief association shall 
 23.29  calculate and certify to the governing body of the applicable 
 23.30  qualified municipality the average amount of available financing 
 23.31  per active covered firefighter for the most recent three-year 
 23.32  period.  The amount of available financing shall include any 
 23.33  amounts of fire state aid received or receivable by the relief 
 23.34  association, any amounts of municipal contributions to the 
 23.35  relief association raised from levies on real estate or from 
 23.36  other available revenue sources exclusive of fire state aid, and 
 24.1   one-tenth of the amount of assets in excess of the accrued 
 24.2   liabilities of the relief association calculated pursuant to 
 24.3   sections under section 69.772, subdivision 2; 69.773, 
 24.4   subdivisions 2 and 4; or 69.774, subdivision 2, if any.  
 24.5      (b) The maximum service pension which the relief 
 24.6   association has authority to provide for in its bylaws for 
 24.7   payment to a member retiring after the calculation date when the 
 24.8   minimum age and service requirements specified in subdivision 1 
 24.9   are met must be determined using the table in paragraph (c) or 
 24.10  (d), whichever applies. 
 24.11     (c) For a relief association where the governing bylaws 
 24.12  provide for a monthly service pension to a retiring member, the 
 24.13  maximum monthly service pension amount per month for each year 
 24.14  of service credited that may be provided for in the bylaws is 
 24.15  the maximum service pension figure corresponding to the average 
 24.16  amount of available financing per active covered firefighter: 
 24.17    Minimum Average Amount of      Maximum Service Pension
 24.18    Available Financing per        Amount Payable per Month
 24.19         Firefighter               for Each Year of Service
 24.20           $...                             $ .25
 24.21             42                               .50
 24.22             84                              1.00
 24.23            126                              1.50
 24.24            168                              2.00
 24.25            209                              2.50
 24.26            252                              3.00
 24.27            294                              3.50
 24.28            335                              4.00
 24.29            378                              4.50
 24.30            420                              5.00
 24.31            503                              6.00
 24.32            587                              7.00
 24.33            672                              8.00
 24.34            755                              9.00
 24.35            839                             10.00
 24.36            923                             11.00
 25.1            1007                             12.00
 25.2            1090                             13.00
 25.3            1175                             14.00
 25.4            1259                             15.00
 25.5            1342                             16.00
 25.6            1427                             17.00
 25.7            1510                             18.00
 25.8            1594                             19.00
 25.9            1677                             20.00
 25.10           1762                             21.00
 25.11           1845                             22.00
 25.12           1888                             22.50
 25.13           1929                             23.00
 25.14           2014                             24.00
 25.15           2098                             25.00
 25.16           2183                             26.00
 25.17           2267                             27.00
 25.18           2351                             28.00
 25.19           2436                             29.00
 25.20           2520                             30.00
 25.21           2604                             31.00
 25.22           2689                             32.00
 25.23           2773                             33.00
 25.24           2857                             34.00
 25.25           2942                             35.00
 25.26           3026                             36.00
 25.27           3110                             37.00
 25.28           3963 3194                        38.00
 25.29           4047 3278                        39.00
 25.30           4137 3362                        40.00
 25.31     Effective beginning December 31, 2000: 
 25.32           4227 3446                        41.00
 25.33           4317 3530                        42.00
 25.34           4407 3614                        43.00
 25.35           4497 3698                        44.00
 25.36     Effective beginning December 31, 2001: 
 26.1            4587 3782                        45.00
 26.2            4677 3866                        46.00
 26.3            4767 3950                        47.00
 26.4            4857 4034                        48.00
 26.5      Effective beginning December 31, 2002: 
 26.6            4947 4118                        49.00
 26.7            5037 4202                        50.00
 26.8            5127 4286                        51.00
 26.9            5217 4370                        52.00
 26.10     Effective beginning December 31, 2003: 
 26.11           5307 4454                        53.00
 26.12           5397 4538                        54.00
 26.13           5487 4622                        55.00
 26.14           5577 4706                        56.00
 26.15     (d) For a relief association in which the governing bylaws 
 26.16  provide for a lump sum service pension to a retiring member, the 
 26.17  maximum lump sum service pension amount for each year of service 
 26.18  credited that may be provided for in the bylaws is the maximum 
 26.19  service pension figure corresponding to the average amount of 
 26.20  available financing per active covered firefighter for the 
 26.21  applicable specified period: 
 26.22   Minimum Average Amount         Maximum Lump Sum Service
 26.23   of Available Financing         Pension Amount Payable
 26.24      per Firefighter             for Each Year of Service
 26.25          $..                              $10
 26.26           11                               20
 26.27           16                               30
 26.28           23                               40
 26.29           27                               50
 26.30           32                               60
 26.31           43                               80
 26.32           54                              100
 26.33           65                              120
 26.34           77                              140
 26.35           86                              160
 26.36           97                              180
 27.1           108                              200
 27.2           131                              240
 27.3           151                              280
 27.4           173                              320
 27.5           194                              360
 27.6           216                              400
 27.7           239                              440
 27.8           259                              480
 27.9           281                              520
 27.10          302                              560
 27.11          324                              600
 27.12          347                              640
 27.13          367                              680
 27.14          389                              720
 27.15          410                              760
 27.16          432                              800
 27.17          486                              900
 27.18          540                             1000
 27.19          594                             1100
 27.20          648                             1200
 27.21          702                             1300
 27.22          756                             1400
 27.23          810                             1500
 27.24          864                             1600
 27.25          918                             1700
 27.26          972                             1800
 27.27         1026                             1900
 27.28         1080                             2000
 27.29         1134                             2100
 27.30         1188                             2200
 27.31         1242                             2300
 27.32         1296                             2400
 27.33         1350                             2500
 27.34         1404                             2600
 27.35         1458                             2700
 27.36         1512                             2800
 28.1          1566                             2900
 28.2          1620                             3000
 28.3          1672                             3100
 28.4          1726                             3200
 28.5          1753                             3250
 28.6          1780                             3300
 28.7          1820                             3375
 28.8          1834                             3400
 28.9          1888                             3500
 28.10         1942                             3600
 28.11         1996                             3700
 28.12         2023                             3750
 28.13         2050                             3800
 28.14         2104                             3900
 28.15         2158                             4000
 28.16         2212                             4100
 28.17         2265                             4200
 28.18         2319                             4300
 28.19         2373                             4400
 28.20         2427                             4500
 28.21         2481                             4600
 28.22         2535                             4700
 28.23         2589                             4800
 28.24         2643                             4900
 28.25         2697                             5000
 28.26         2751                             5100
 28.27         2805                             5200
 28.28         2859                             5300
 28.29         2913                             5400
 28.30         2967                             5500
 28.31     Effective beginning December 31, 2000: 
 28.32         3021                             5600
 28.33         3075                             5700
 28.34         3129                             5800
 28.35         3183                             5900
 28.36         3237                             6000
 29.1      Effective beginning December 31, 2001: 
 29.2          3291                             6100
 29.3          3345                             6200
 29.4          3399                             6300
 29.5          3453                             6400
 29.6          3507                             6500
 29.7      Effective beginning December 31, 2002: 
 29.8          3561                             6600
 29.9          3615                             6700
 29.10         3669                             6800
 29.11         3723                             6900
 29.12         3777                             7000
 29.13     Effective beginning December 31, 2003: 
 29.14         3831                             7100
 29.15         3885                             7200
 29.16         3939                             7300
 29.17         3993                             7400
 29.18         4047                             7500
 29.19     (e) For a relief association in which the governing bylaws 
 29.20  provide for a monthly benefit service pension as an alternative 
 29.21  form of service pension payment to a lump sum service pension, 
 29.22  the maximum service pension amount for each pension payment type 
 29.23  must be determined using the applicable table contained in this 
 29.24  subdivision. 
 29.25     (f) If a relief association establishes a service pension 
 29.26  in compliance with the applicable maximum contained in paragraph 
 29.27  (c) or (d) and the minimum average amount of available financing 
 29.28  per active covered firefighter is subsequently reduced because 
 29.29  of a reduction in fire state aid or because of an increase in 
 29.30  the number of active firefighters, the relief association may 
 29.31  continue to provide the prior service pension amount specified 
 29.32  in its bylaws, but may not increase the service pension amount 
 29.33  until the minimum average amount of available financing per 
 29.34  firefighter under the table in paragraph (c) or (d), whichever 
 29.35  applies, permits. 
 29.36     (g) No relief association is authorized to provide a 
 30.1   service pension in an amount greater than the largest applicable 
 30.2   flexible service pension maximum amount even if the amount of 
 30.3   available financing per firefighter is greater than the 
 30.4   financing amount associated with the largest applicable flexible 
 30.5   service pension maximum. 
 30.6      Sec. 2.  [BENEFIT RATIFICATION; WHITE BEAR LAKE.] 
 30.7      Notwithstanding Minnesota Statutes, section 424A.02, 
 30.8   subdivisions 3 and 3a, to the contrary, the service pension 
 30.9   amounts specified in the bylaws of the White Bear Lake fire 
 30.10  department relief association following bylaw amendments in 
 30.11  January 1999 and prior to the effective date of this section are 
 30.12  ratified. 
 30.13     Sec. 3.  [EFFECTIVE DATE.] 
 30.14     Sections 1 and 2 are effective the day following final 
 30.15  enactment.  
 30.16                             ARTICLE 9
 30.17                      LOCAL RETIREMENT CHANGES
 30.18     Section 1.  Minnesota Statutes 2002, section 383B.49, is 
 30.19  amended to read: 
 30.20     383B.49 [SUPPLEMENTAL RETIREMENT BENEFITS; REDEMPTION OF 
 30.21  SHARES.] 
 30.22     When requested to do so, in writing, on forms provided by 
 30.23  the county, by a participant, surviving spouse, a guardian of a 
 30.24  surviving child or a personal representative, whichever is 
 30.25  applicable, the county of Hennepin shall redeem shares in the 
 30.26  accounts of the Minnesota supplemental investment fund standing 
 30.27  in a participant's share account record under the following 
 30.28  circumstances and in accordance with the laws and regulations 
 30.29  governing the Minnesota supplemental investment fund: 
 30.30     (1) A participant who is no longer employed by the county 
 30.31  of Hennepin is entitled to receive the cash realized on the 
 30.32  redemption of the shares to the credit of the participant's 
 30.33  share account record of the person.  The participant may request 
 30.34  the redemption of all or a portion of the shares in the 
 30.35  participant's share account record of the person, but may not 
 30.36  request more than one redemption in any one calendar year.  If 
 31.1   only a portion of the shares in the participant's share account 
 31.2   record is requested to be redeemed the person may request to 
 31.3   redeem not less than 20 percent of the shares in any one 
 31.4   calendar year and the redemption must be completed in no more 
 31.5   than five years.  An election is irrevocable except that a 
 31.6   participant may request an amendment of the election to redeem 
 31.7   all of the person's remaining shares.  All requests under this 
 31.8   paragraph are subject to application to and approval of the 
 31.9   Hennepin county board administrator, in its the sole 
 31.10  discretion of the administrator.  
 31.11     (2) In the event of the death of a participant leaving a 
 31.12  surviving spouse, the surviving spouse is entitled to receive 
 31.13  the cash realized on the redemption of all or a portion of the 
 31.14  shares in the participant's share account record of the deceased 
 31.15  spouse, but in no event may the spouse request more than one 
 31.16  redemption in each calendar year.  If only a portion of the 
 31.17  shares in the participant's share account record is requested to 
 31.18  be redeemed, the surviving spouse may request the redemption of 
 31.19  not less than 20 percent of the shares in any one calendar 
 31.20  year.  Redemption must be completed in no more than five years.  
 31.21  An election is irrevocable except that the surviving spouse may 
 31.22  request an amendment of the election to redeem all of the 
 31.23  participant's remaining shares.  All requests under this 
 31.24  paragraph are subject to application to and approval of the 
 31.25  Hennepin county board administrator, in its the sole 
 31.26  discretion of the administrator.  Upon the death of the 
 31.27  surviving spouse, any shares remaining in the participant's 
 31.28  share account record must be redeemed by the county of Hennepin 
 31.29  and the cash realized from the redemption distributed to the 
 31.30  estate of the surviving spouse. 
 31.31     (3) In the event of the death of a participant leaving no 
 31.32  surviving spouse, but leaving a minor surviving child or minor 
 31.33  surviving children, the guardianship estate of the minor child 
 31.34  is, or the guardianship estates of the minor children are, 
 31.35  entitled to receive the cash realized on the redemption of all 
 31.36  shares to the credit of the participant's share account record 
 32.1   of the deceased participant.  In the event of minor surviving 
 32.2   children, the cash realized must be paid in equal shares to the 
 32.3   guardianship estates of the minor surviving children. 
 32.4      (4) In the event of the death of a participant leaving no 
 32.5   surviving spouse and no minor surviving children, the estate of 
 32.6   the deceased participant is entitled to receive the cash 
 32.7   realized on the redemption of all shares to the credit of the 
 32.8   participant's share account record of the deceased participant. 
 32.9      Sec. 2.  Minnesota Statutes 2002, section 383B.493, is 
 32.10  amended to read: 
 32.11     383B.493 [WITHDRAWAL FROM PARTICIPATION.] 
 32.12     Notwithstanding Laws 1982, chapter 450, or any other law to 
 32.13  the contrary, a Hennepin county employee participating in the 
 32.14  Hennepin county supplemental retirement program pursuant to Laws 
 32.15  1982, chapter 450 may, in the event of an unforeseeable 
 32.16  emergency, apply to the county to discontinue participation in 
 32.17  the program.  Employees who are no longer participating in the 
 32.18  program may apply for the redemption of all shares credited to 
 32.19  their share account record.  Applications are subject to 
 32.20  approval of the Hennepin county board of commissioners 
 32.21  administrator in its the sole discretion of the administrator.  
 32.22  For the purposes of this section, the term "unforeseeable 
 32.23  emergency" shall mean a severe financial hardship to the 
 32.24  participant resulting from a sudden and unexpected illness or 
 32.25  accident of the participant or a person dependent upon the 
 32.26  participant, loss of participant's property due to casualty, or 
 32.27  other similar extraordinary and unforeseeable circumstances 
 32.28  arising as a result of events beyond the control of the 
 32.29  participant.  Applications based on foreseeable expenditures 
 32.30  normally budgetable shall not be approved.  A participant 
 32.31  exercising the option provided by this section shall be 
 32.32  ineligible for further participation in the supplemental 
 32.33  retirement program. 
 32.34     Sec. 3.  [EVELETH RETIRED POLICE AND FIRE TRUST FUND; AD 
 32.35  HOC POSTRETIREMENT ADJUSTMENT.] 
 32.36     In addition to the current pensions and other retirement 
 33.1   benefits payable, the pensions and retirement benefits payable 
 33.2   to retired police officers and firefighters and their surviving 
 33.3   spouses by the Eveleth police and fire trust fund are increased 
 33.4   by $100 per month.  Increases are retroactive from January 1, 
 33.5   2003. 
 33.6      Sec. 4.  [MARSHALL VOLUNTEER FIRE.] 
 33.7      Notwithstanding any provision of Minnesota Statutes, 
 33.8   section 424A.02, subdivision 7, or other law to the contrary, as 
 33.9   a pilot project, the Marshall volunteer firefighter relief 
 33.10  association may amend its bylaws to pay interest on deferred 
 33.11  lump sum payment pensions based on a rate determined annually by 
 33.12  the board of trustees based on the actual time weighted total 
 33.13  rate of return investment performance of the special fund as 
 33.14  reported by the office of the state auditor under Minnesota 
 33.15  Statutes, section 356.219, up to five percent, and applied 
 33.16  consistently for all deferred service pensioners. 
 33.17     Sec. 5.  [EFFECTIVE DATE.] 
 33.18     (a) Sections 1 and 2 are effective upon approval by the 
 33.19  Hennepin county board of commissioners and compliance with 
 33.20  Minnesota Statutes, section 645.021. 
 33.21     (b) Section 3 is effective the day after the date on which 
 33.22  the Eveleth city council and the chief clerical officer of the 
 33.23  city of Eveleth comply with Minnesota Statutes, section 645.021, 
 33.24  subdivisions 2 and 3. 
 33.25     (c) Section 4 is effective the day after the date on which 
 33.26  the Marshall city council and the chief clerical officer of the 
 33.27  city of Marshall comply with Minnesota Statutes, section 
 33.28  645.021, subdivisions 2 and 3. 
 33.29                             ARTICLE 10 
 33.30              PRIOR SERVICE CREDIT PURCHASE PROVISIONS 
 33.31     Section 1.  Laws 2000, chapter 461, article 19, section 6, 
 33.32  is amended to read:  
 33.33     Sec. 6. [MTRFA; PRIOR SERVICE CREDIT PURCHASE FOR 
 33.34  UNCREDITED TEACHING SERVICE PERIODS.] 
 33.35     (a) An eligible person described in paragraph (b) is 
 33.36  entitled to purchase allowable service credit from the 
 34.1   Minneapolis teachers retirement fund association basic program 
 34.2   for the periods of teaching employment specified in paragraph 
 34.3   (c) by making the payment required under Minnesota Statutes, 
 34.4   section 356.55. 
 34.5      (b) An eligible person is a person who:  
 34.6      (1) was employed by special school district No. 1 
 34.7   (Minneapolis) as a long call reserve teacher from October 1972 
 34.8   to June 1973 and was covered by the Minneapolis employees 
 34.9   retirement fund; 
 34.10     (2) was employed by special school district No. 1 
 34.11  (Minneapolis) as a school social worker at Franklin junior high 
 34.12  school from August 28, 1973, through June 12, 1974, and from 
 34.13  August 29, 1974, through June 11, 1975, without retirement 
 34.14  coverage; 
 34.15     (3) was employed by special school district No. 1 
 34.16  (Minneapolis) as a school social worker at North high school 
 34.17  from August 29, 1975, through December 19, 1975, covered by the 
 34.18  Minneapolis teachers retirement fund association; 
 34.19     (4) was retained by special school district No. 1 
 34.20  (Minneapolis) in the capacity of a school social worker at North 
 34.21  high school as an hourly wage social worker from August 1976 
 34.22  through June 1983 without retirement coverage; and 
 34.23     (5) is currently employed by Hennepin county covered by the 
 34.24  public employees retirement association.  
 34.25     (c) The periods for allowable service credit purchase are 
 34.26  August 28, 1973, through June 12, 1974; and August 29, 1974, 
 34.27  through June 11, 1975.  
 34.28     (d) An eligible person must provide any relevant 
 34.29  documentation related to eligibility to make this service credit 
 34.30  purchase required by the executive director of the Minneapolis 
 34.31  teachers retirement fund association.  
 34.32     (e) Allowable service credit for the purchase periods must 
 34.33  be granted by the Minneapolis teachers retirement fund 
 34.34  association to the account of the eligible person upon receipt 
 34.35  of the prior service credit purchase payment amount.  Authority 
 34.36  provided by this section is voided if payment is not made before 
 35.1   December 31, 2003, or before commencing receipt of an annuity 
 35.2   from the Minneapolis teachers retirement fund association, 
 35.3   whichever is earlier.  
 35.4      (f) The prior service credit purchase payment amount shall 
 35.5   be computed by the actuary retained by the legislative 
 35.6   commission on pensions and retirement. That computation must 
 35.7   give recognition, in applying the process stated in Minnesota 
 35.8   Statutes, section 356.55, give recognition to the liabilities 
 35.9   that would be created in the Minneapolis teachers retirement 
 35.10  fund association and other Minnesota public pension funds due to 
 35.11  the service credit purchase.  
 35.12     (g) Following receipt of that purchase payment amount, the 
 35.13  executive director of the Minneapolis teachers retirement fund 
 35.14  association shall allocate and transmit that amount to the 
 35.15  applicable pension administrations, as determined under 
 35.16  paragraph (f). 
 35.17     Sec. 2.  [TEACHERS RETIREMENT ASSOCIATION; SERVICE CREDIT 
 35.18  PURCHASE FOR SABBATICAL LEAVES.] 
 35.19     (a) Notwithstanding Minnesota Statutes, section 354.092, or 
 35.20  any other law to the contrary, an eligible person described in 
 35.21  paragraph (b) is entitled to purchase not more than three years 
 35.22  of allowable service credit from the teachers retirement 
 35.23  association for sabbatical leave as defined in Minnesota 
 35.24  Statutes, section 122A.49. 
 35.25     (b) An eligible person is a person who: 
 35.26     (1) worked as a teacher for independent school district No. 
 35.27  191, Burnsville-Eagan-Savage; 
 35.28     (2) was on sabbatical leave at some time between January 1, 
 35.29  1982, and December 31, 1989; and 
 35.30     (3) did not receive service credit for time on sabbatical 
 35.31  leave because the leave was not properly reported to the 
 35.32  teachers retirement association. 
 35.33     (c) An eligible person described in paragraph (b) must 
 35.34  apply with the executive director of the teachers retirement 
 35.35  association to make a service credit purchase under this 
 35.36  section.  The application must be in writing and must include 
 36.1   all necessary documentation of the applicability of this section 
 36.2   and any other relevant information that the executive director 
 36.3   may require. 
 36.4      (d) Allowable service credit for the purchase periods must 
 36.5   be granted by the teachers retirement association to the account 
 36.6   of an eligible person upon receipt of the portion of the prior 
 36.7   service credit purchase payment amount payable under paragraph 
 36.8   (e) in a lump sum by the applicable eligible person. 
 36.9      (e) Notwithstanding Minnesota Statutes, section 356.55 or 
 36.10  356.551, whichever is applicable, an eligible person may pay 
 36.11  before September 1, 2003, or the date of termination from 
 36.12  service, whichever is earlier, an amount equal to the employee 
 36.13  contribution rate or rates in effect during the applicable 
 36.14  sabbatical leave period or periods specified in paragraph (b) 
 36.15  applied to the actual salary rate or rates in effect during that 
 36.16  period or periods, plus annual compound interest at the rate of 
 36.17  8.5 percent from the midpoint of each applicable sabbatical 
 36.18  leave period, to the date on which the payment is actually 
 36.19  made.  Independent school district No. 191 must pay the 
 36.20  remaining balance of the prior service credit purchase payment 
 36.21  amount calculated under Minnesota Statutes, section 356.55 or 
 36.22  356.551, whichever is applicable, within 30 days of the payment 
 36.23  by an eligible person.  The executive director of the teachers 
 36.24  retirement association must notify the superintendent of 
 36.25  independent school district No. 191 of its payment amount and 
 36.26  payment due date if an eligible person makes the required 
 36.27  payment. 
 36.28     (f) If independent school district No. 191 fails to pay its 
 36.29  portion of the required prior service credit purchase payment 
 36.30  amount, the executive director of the teachers retirement 
 36.31  association must notify the commissioner of finance of that fact 
 36.32  and the commissioner of finance must order that the required 
 36.33  employer payment be deducted from the next subsequent payment or 
 36.34  payments of state education aid to the school district and be 
 36.35  transmitted to the teachers retirement association. 
 36.36     Sec. 3.  [EFFECTIVE DATE.] 
 37.1      This article is effective the day following final enactment.