1.1                          A bill for an act 
  1.2             relating to retirement; various retirement plans; 
  1.3             allowing the Hennepin county administrator to approve 
  1.4             certain Hennepin county supplemental retirement 
  1.5             participant requests; providing for an increase in the 
  1.6             compensation for the executive secretary of the 
  1.7             Minneapolis firefighters relief association; providing 
  1.8             an ad hoc postretirement adjustment to Eveleth police 
  1.9             and fire trust fund retirees and survivors; providing 
  1.10            for continued retirement coverage for the Red Wing 
  1.11            learning center staff; modifying the Minneapolis 
  1.12            firefighters relief association death refund 
  1.13            provision; authorizing a coverage election change by a 
  1.14            certain Bemidji city council member; providing 
  1.15            retroactive coverage under the qualified part-time 
  1.16            teacher program for certain Minneapolis and Duluth 
  1.17            teachers; including St. Paul port authority employees 
  1.18            in PERA-general coverage; allowing prior service 
  1.19            credit purchases by certain St. Paul port authority 
  1.20            employees; extending the sunset of various service 
  1.21            credit purchase provisions to 2003; providing an 
  1.22            expiration date for a prior MTRFA service credit 
  1.23            purchase; authorizing the Minnesota state colleges and 
  1.24            universities system to formulate an early retirement 
  1.25            incentive program; providing various local public 
  1.26            employee and state government executive and 
  1.27            legislative branch early retirement incentives; 
  1.28            providing enhanced teachers retirement association 
  1.29            extended leave provisions; extending supplemental 
  1.30            benefit plan status to local plumbers' and 
  1.31            pipefitters' union pension plans; correcting a mistake 
  1.32            in the flexible service pension maximum financial 
  1.33            requirements for monthly benefit volunteer firefighter 
  1.34            relief associations; providing an additional deferred 
  1.35            volunteer firefighter service pensioner interest 
  1.36            payment option; revising ratifying monthly benefit 
  1.37            service pension amounts for the White Bear Lake fire 
  1.38            department relief association; creating a task force 
  1.39            to study the advantages and disadvantages of creating 
  1.40            a statewide volunteer firefighter retirement plan; 
  1.41            authorizing a former St. Louis Park police officer to 
  1.42            purchase service credit covered by a local police 
  1.43            relief association; authorizing purchases of service 
  1.44            credit for unreported sabbatical leaves; authorizing a 
  1.45            refund to a state employee on a medical leave; 
  1.46            amending Minnesota Statutes 2002, sections 122A.46, 
  2.1             subdivision 9; 353.01, subdivisions 2d, 6; 353.028, 
  2.2             subdivision 2; 353D.01, subdivision 2; 353D.02, by 
  2.3             adding a subdivision; 353F.02, subdivision 4; 354.094, 
  2.4             subdivision 1; 356.24, subdivision 1; 356.55, 
  2.5             subdivision 7; 383B.49; 383B.493; 423C.03, subdivision 
  2.6             3; 423C.08; 424A.02, subdivision 3; Laws 1999, chapter 
  2.7             222, article 16, section 16, as amended; Laws 2000, 
  2.8             chapter 461, article 4, section 4; Laws 2000, chapter 
  2.9             461, article 12, section 20, as amended; Laws 2000, 
  2.10            chapter 461, article 19, section 6; Laws 2001, First 
  2.11            Special Session chapter 10, article 6, section 21, as 
  2.12            amended; proposing coding for new law in Minnesota 
  2.13            Statutes, chapter 136F; repealing Minnesota Statutes 
  2.14            2002, sections 354.541; 354A.109. 
  2.15  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  2.16                             ARTICLE 1
  2.17                      MINNESOTA STATE COLLEGES
  2.18                      AND UNIVERSITIES SYSTEM
  2.19                    EARLY RETIREMENT INCENTIVES
  2.20     Section 1.  [136F.475] [MNSCU; EARLY SEPARATION INCENTIVE 
  2.21  PROGRAM AUTHORIZATION.] 
  2.22     (a) Notwithstanding any provision of law to the contrary, 
  2.23  the board of trustees of the Minnesota state colleges and 
  2.24  universities may offer a targeted early retirement incentive 
  2.25  program for its employees. 
  2.26     (b) The early separation incentive program may include one 
  2.27  or more of the following: 
  2.28     (1) employer-paid postseparation health, medical, and 
  2.29  dental insurance; 
  2.30     (2) cash incentives; and 
  2.31     (3) employer contributions to the postretirement health 
  2.32  care savings plan established under section 352.98.  Any 
  2.33  postseparation health or medical insurance coverage for 
  2.34  incentive recipients who are age 65 or older must be coordinated 
  2.35  with federal Medicare benefits. 
  2.36     (c) The board of trustees of the Minnesota state colleges 
  2.37  and universities system shall establish the eligibility 
  2.38  requirements for system employees to receive an incentive.  The 
  2.39  type and the amount of the incentive to be offered may vary by 
  2.40  employee classification, as specified by the board. 
  2.41     (d) The president of a college or university, or the 
  2.42  chancellor with respect to the office of the chancellor, 
  3.1   consistent with the board's program provisions under paragraph 
  3.2   (b) and with the board's eligibility requirements under 
  3.3   paragraph (c), may designate specific departments or programs at 
  3.4   the college or university whose employees are eligible to be 
  3.5   offered the incentive program. 
  3.6      (e) Acceptance of the offered incentive must be voluntary 
  3.7   on the part of the employee and must be in writing.  The 
  3.8   incentive may only be offered at the sole discretion of the 
  3.9   president of the applicable college or university.  The eligible 
  3.10  employee's agreement must include a certification that the 
  3.11  individual would not have voluntarily separated from service 
  3.12  within two years of the separation date if the early separation 
  3.13  incentive had not been offered. 
  3.14     (f) A decision by the president of a college or university 
  3.15  or the chancellor with respect to the office of the chancellor, 
  3.16  not to offer an incentive may not be grieved. 
  3.17     (g) The cost of the incentive is payable solely by the 
  3.18  college or university or the office of the chancellor on whose 
  3.19  behalf the president or chancellor offered the incentive.  If a 
  3.20  college or university is merged, the remaining cost of any early 
  3.21  retirement incentive must be borne by the successor 
  3.22  institution.  If a college or university is closed, the 
  3.23  remaining cost of any early retirement incentive must be borne 
  3.24  by the board of trustees of the Minnesota state colleges and 
  3.25  universities system. 
  3.26     (h) A person must be at least 55 years of age to be 
  3.27  eligible to receive an early retirement incentive under this 
  3.28  section. 
  3.29     Sec. 2.  [136F.476] [APPLICATION OF OTHER LAWS.] 
  3.30     (a) Unilateral implementation of section 136F.475 by the 
  3.31  board of trustees of the Minnesota state colleges and 
  3.32  universities system or by a president of a college or university 
  3.33  is not an unfair labor practice under chapter 179A. 
  3.34     (b) The authority in section 136F.475 for a college or 
  3.35  university to pay health, medical, and dental insurance premiums 
  3.36  for former employees granted an early retirement incentive is 
  4.1   not subject to the limits of section 179A.20, subdivision 2a. 
  4.2      Sec. 3.  [REPORTING.] 
  4.3      Each college or university that offers early retirement 
  4.4   incentives under section 1 shall annually report to the 
  4.5   Minnesota state colleges and universities board the types of 
  4.6   early retirement incentives offered, the number of individuals 
  4.7   receiving each type of incentive, and the cost or savings 
  4.8   resulting from the incentives.  The Minnesota state colleges and 
  4.9   universities board shall report summary data on the incentives 
  4.10  offered under section 1 to the legislative commission on 
  4.11  pensions and retirement.  
  4.12     Sec. 4.  [SEPARATION FROM SERVICE.] 
  4.13     Except in urgent situations approved by the board or for 
  4.14  employees who are covered by Minnesota Statutes, sections 
  4.15  136F.48 and 354.445, a person receiving an early retirement 
  4.16  incentive under section 1 shall not be reemployed by the 
  4.17  Minnesota state colleges and universities for at least three 
  4.18  years following retirement under section 1.  
  4.19     Sec. 5.  [EFFECTIVE DATE; EXPIRATION.] 
  4.20     Sections 1 to 4 are effective on the day following final 
  4.21  enactment and expire on June 30, 2008. 
  4.22                             ARTICLE 2
  4.23                 MINNESOTA STATE RETIREMENT SYSTEM 
  4.24                    EARLY RETIREMENT INCENTIVES
  4.25     Section 1.  [EARLY RETIREMENT INCENTIVE.] 
  4.26     Subdivision 1.  [ELIGIBILITY.] (a) An appointing authority 
  4.27  in the executive or legislative branch of state government may 
  4.28  offer the early retirement incentive in this section to an 
  4.29  employee who: 
  4.30     (1) has at least five years of allowable service in one or 
  4.31  a combination of the funds listed in Minnesota Statutes, section 
  4.32  356.30, subdivision 3, and upon retirement is immediately 
  4.33  eligible for a retirement annuity from one or more of these 
  4.34  funds; and 
  4.35     (2) terminates state service after the effective date of 
  4.36  this section and before September 1, 2003. 
  5.1      (b) For purposes of this section, the executive branch of 
  5.2   state government includes the departments of the state listed in 
  5.3   Minnesota Statutes, section 15.01, any board, committee, 
  5.4   council, authority, or advisory task force that is funded wholly 
  5.5   or primarily from the general fund, the metropolitan council, 
  5.6   the Minnesota state colleges and universities system, the 
  5.7   University of Minnesota, or the Minnesota historical society. 
  5.8      (c) For purposes of this section, the executive branch of 
  5.9   state government does not include the state board of investment, 
  5.10  the Minnesota state retirement system, the public employees 
  5.11  retirement association, or the teachers retirement association. 
  5.12     Subd. 2.  [INCENTIVE.] (a) For an employee eligible under 
  5.13  subdivision 1, the employer may provide an amount up to $15,000, 
  5.14  to be used: 
  5.15     (1) for an employee who terminates state service after the 
  5.16  effective date of this section and on or before July 15, 2003, 
  5.17  for deposit in the employee's account in the health care savings 
  5.18  plan established by Minnesota Statutes, section 352.98; or 
  5.19     (2) for an employee who terminates state service after July 
  5.20  15, 2003, and before September 1, 2003: 
  5.21     (i) notwithstanding Minnesota Statutes, section 352.01, 
  5.22  subdivision 11, 356.55, or 356.551, for purchase of allowable 
  5.23  service credit for unperformed service that is sufficient to 
  5.24  enable the employee to retire under Minnesota Statutes, section 
  5.25  352.116, subdivision 1, paragraph (b); or 
  5.26     (ii) for purchase of a lifetime annuity or annuity for a 
  5.27  specific number of years from the state unclassified retirement 
  5.28  program to provide additional benefits under Minnesota Statutes, 
  5.29  section 352D.06, subdivision 1. 
  5.30     (b) An employee is eligible for the payment under paragraph 
  5.31  (a), clause (2), item (i), if the employee uses money from a 
  5.32  deferred compensation account that, combined with the payment 
  5.33  under clause (2), item (i), would be sufficient to purchase 
  5.34  enough service credit to qualify for retirement under Minnesota 
  5.35  Statutes, section 352.116, subdivision 1, paragraph (b). 
  5.36     Subd. 3.  [DESIGNATION OF POSITIONS; EMPLOYER 
  6.1   DISCRETION.] (a) Before offering an incentive under this 
  6.2   section, an appointing authority must designate the job 
  6.3   classifications or positions within job classifications that 
  6.4   qualify for the incentive.  The appointing authority may modify 
  6.5   this designation at any time.  For agencies in the executive 
  6.6   branch, the positions or groups of positions and the individuals 
  6.7   to which the agency intends to offer early retirement incentives 
  6.8   must be reviewed by and approved by the commissioner of finance 
  6.9   prior to the incentive offer being made.  If the commissioner of 
  6.10  finance finds that the salary savings intended to be obtained 
  6.11  from the early retirement incentive offer exceed the amount of 
  6.12  the early retirement incentive to be offered, the commissioner 
  6.13  shall approve the offer.  Before January 15, 2004, the 
  6.14  commissioner shall provide a report to the legislative 
  6.15  commission on pensions and retirement indicating the number of 
  6.16  individuals receiving each type of incentive, and the cost and 
  6.17  savings resulting from the incentive.  
  6.18     (b) Designation of positions eligible for the incentive 
  6.19  under this section, participation of individual employees, and 
  6.20  the amount of the payment under this section are at the sole 
  6.21  discretion of the appointing authority.  Unilateral 
  6.22  implementation of this section by the employer is not an unfair 
  6.23  labor practice under Minnesota Statutes, chapter 179A. 
  6.24     Subd. 4.  [STATUS AS ALLOWABLE SERVICE CREDIT.] Any 
  6.25  allowable service credit purchased as provided in subdivision 2, 
  6.26  paragraph (a), clause (2), item (i), must be considered to be 
  6.27  allowable service credit under Minnesota Statutes, section 
  6.28  352.01, subdivision 11. 
  6.29     Subd. 5.  [PROHIBITION ON REHIRE OR RETENTION AS 
  6.30  CONSULTANT.] A person who accepts an early retirement incentive 
  6.31  under this section is prohibited for a period of three years 
  6.32  from being rehired by any state employer or from being retained 
  6.33  as a consultant by a state employing agency. 
  6.34     Sec. 2.  [PHASED RETIREMENT.] 
  6.35     (a) This section applies to a state employee who: 
  6.36     (1) on the effective date of this section is regularly 
  7.1   scheduled to work 1,040 or more hours a year in a position 
  7.2   covered by the Minnesota state retirement system general 
  7.3   employees retirement plan, correctional plan, or unclassified 
  7.4   plan; 
  7.5      (2) enters into an agreement with the appointing authority 
  7.6   to work a reduced schedule that is both (i) a reduction of at 
  7.7   least 25 percent from the number of regularly scheduled work 
  7.8   hours; and (ii) 1,040 hours or less in the covered position; and 
  7.9      (3) at the time of entering into the agreement under clause 
  7.10  (2), meets the age and service requirements necessary to receive 
  7.11  a retirement annuity from the plan. 
  7.12     (b) Notwithstanding any law to the contrary, for service 
  7.13  under an agreement entered into under paragraph (a), an employee 
  7.14  agrees to terminate public employment satisfying requirements 
  7.15  necessary for the commencement of the retirement annuity, and 
  7.16  agrees to reemployment with the applicable employer under terms 
  7.17  and conditions specified in this section.  If an eligible public 
  7.18  employee commences receipt of the annuity, the provisions of 
  7.19  Minnesota Statutes, section 352.115, subdivision 10, governing 
  7.20  annuities of reemployed annuitants, shall not apply for the 
  7.21  duration of the agreement. 
  7.22     (c) The amount of hours worked, the work schedule, and the 
  7.23  duration of the phased retirement employment must be mutually 
  7.24  agreed to by the employee and the appointing authority.  The 
  7.25  appointing authority may not require a person to waive any 
  7.26  rights under a collective bargaining agreement as a condition of 
  7.27  participation under this section.  The appointing authority has 
  7.28  sole discretion to determine if and the extent to which phased 
  7.29  retirement under this section is available to an employee. 
  7.30     (d) Notwithstanding any law to the contrary, a person may 
  7.31  not earn service credit in the Minnesota state retirement system 
  7.32  for employment covered under this section, and employer 
  7.33  contributions and payroll deductions for the retirement fund 
  7.34  must not be made based on earnings of a person working under 
  7.35  this section.  No change shall be made to a monthly annuity or 
  7.36  retirement allowance based on employment under this section. 
  8.1      (e) A person who works under this section is a member of 
  8.2   the appropriate bargaining unit; is covered by the appropriate 
  8.3   collective bargaining contract or compensation plan; and is 
  8.4   eligible for health care coverage as provided in the collective 
  8.5   bargaining contract or compensation plan. 
  8.6      (f) An agreement under this section may apply only to work 
  8.7   through June 30, 2005. 
  8.8      Sec. 3.  [VOLUNTARY HOUR REDUCTION PLAN.] 
  8.9      (a) This section applies to a state employee who: 
  8.10     (1) on the effective date of this section is regularly 
  8.11  scheduled to work 1,040 or more hours a year in a position 
  8.12  covered by a pension plan administered by the Minnesota state 
  8.13  retirement system; and 
  8.14     (2) enters into an agreement with the appointing authority 
  8.15  to work a reduced schedule of 1,040 hours or less in the covered 
  8.16  position. 
  8.17     (b) Notwithstanding any law to the contrary, for service 
  8.18  under an agreement entered into under paragraph (a), 
  8.19  contributions may be made to the applicable plan of the 
  8.20  Minnesota state retirement system as if the employee had not 
  8.21  reduced hours.  The employee must pay the additional employee 
  8.22  contributions and the employer must pay the additional employer 
  8.23  contributions necessary to bring the service credit and salary 
  8.24  up to the level prior to the voluntary reduction in hours.  
  8.25  Contributions must be made in a time and manner prescribed by 
  8.26  the executive director of the Minnesota state retirement system. 
  8.27     (c) The amount of hours worked, the work schedule, and the 
  8.28  duration of the voluntary hour reduction must be mutually agreed 
  8.29  to by the employee and the appointing authority.  The appointing 
  8.30  authority may not require a person to waive any rights under a 
  8.31  collective bargaining agreement as a condition of participation 
  8.32  under this section.  The appointing authority has sole 
  8.33  discretion to determine if and the extent to which voluntary 
  8.34  hour reduction under this section is available to an employee.  
  8.35     (d) A person who works under this section is a member of 
  8.36  the appropriate bargaining unit; is covered by the appropriate 
  9.1   collective bargaining contract or compensation plan; and is 
  9.2   eligible for health care coverage as provided in the collective 
  9.3   bargaining contract or compensation plan. 
  9.4      (e) An agreement under this section may apply only to work 
  9.5   through June 30, 2005. 
  9.6      Sec. 4.  [VOLUNTARY UNPAID LEAVE OF ABSENCE.] 
  9.7      Appointing authorities in state government may allow each 
  9.8   employee to take unpaid leaves of absence for up to 1,040 hours 
  9.9   between June 1, 2003, and June 30, 2005.  Each appointing 
  9.10  authority approving such a leave shall allow the employee to 
  9.11  continue accruing vacation and sick leave, be eligible for paid 
  9.12  holidays and insurance benefits, accrue seniority, and accrue 
  9.13  service credit and credited salary in the state retirement plans 
  9.14  as if the employee had actually been employed during the time of 
  9.15  leave.  An employee covered by the unclassified plan may 
  9.16  voluntarily make both the employee and employer contributions to 
  9.17  the unclassified plan during the leave of absence.  If the leave 
  9.18  of absence is for one full pay period or longer, any holiday pay 
  9.19  shall be included in the first payroll warrant after return from 
  9.20  the leave of absence.  The appointing authority shall attempt to 
  9.21  grant requests for the unpaid leaves of absence consistent with 
  9.22  the need to continue efficient operation of the agency.  
  9.23  However, each appointing authority shall retain discretion to 
  9.24  grant or refuse to grant requests for leaves of absence and to 
  9.25  schedule and cancel leaves, subject to the applicable provisions 
  9.26  of collective bargaining agreements and compensation plans.  
  9.27     Sec. 5.  [RELATIONSHIP OF SECTIONS.] 
  9.28     (a) An employee covered by a phased retirement agreement 
  9.29  under section 2 may not be covered by the voluntary hour 
  9.30  reduction provisions of section 3 or by a voluntary unpaid leave 
  9.31  of absence agreement under section 4 during the same time period 
  9.32  or any later time period. 
  9.33     (b) An employee covered by the voluntary hour reduction 
  9.34  provisions of section 3: 
  9.35     (1) may not be covered by a phased retirement agreement 
  9.36  under section 2 during the same time period, but may be covered 
 10.1   by a phased retirement agreement under section 2 during a later 
 10.2   time period; and 
 10.3      (2) may be covered by the voluntary leave of absence 
 10.4   provision of section 4 during an earlier or later time period. 
 10.5      (c) An employee may receive the early retirement incentive 
 10.6   in section 1 after being covered under section 2, 3, or 4.  An 
 10.7   employee who receives an incentive under section 1 may not later 
 10.8   be covered by section 2, 3, or 4. 
 10.9      Sec. 6.  [PROGRAM APPLICATION REQUIREMENTS.] 
 10.10     (a) No agreement between an eligible employee and a 
 10.11  governmental subdivision under this article is effective unless 
 10.12  the employee acknowledges acceptance of the terms of the 
 10.13  agreement in writing on a form prescribed by the Minnesota state 
 10.14  retirement system executive director.  
 10.15     (b) A copy of the signed agreement must be transmitted to 
 10.16  the Minnesota state retirement system executive director within 
 10.17  30 days after the agreement is executed.  
 10.18     (c) To be eligible for an early retirement incentive under 
 10.19  section 1 or 2, the eligible employee's signed agreement must 
 10.20  include a certification that the individual would not have 
 10.21  voluntarily separated from service within two years of the 
 10.22  separation date if the early separation incentive had not been 
 10.23  offered. 
 10.24     Sec. 7.  [EMPLOYEE EXCLUSION.] 
 10.25     This article does not apply to any employee who provides 
 10.26  service to more than one employer or appointing authority as 
 10.27  specified in this article, or who earns service credit during 
 10.28  the time period covered by this article, except as specified in 
 10.29  this article, in any Minnesota public employee plan other than a 
 10.30  volunteer fire plan. 
 10.31     Sec. 8.  [EXCLUSION DUE TO BENEFIT RECEIPT.] 
 10.32     Unless otherwise specified, this article does not apply to 
 10.33  an individual who is receiving a retirement annuity from any 
 10.34  retirement plan enumerated in Minnesota Statutes, section 
 10.35  356.30, or from any retirement plan governed by Minnesota 
 10.36  Statutes, section 69.77. 
 11.1      Sec. 9.  [EXCLUSION FOR SOCIAL SECURITY BENEFIT 
 11.2   ELIGIBILITY.] 
 11.3      This article does not apply if the individual is eligible 
 11.4   for the receipt of an unreduced benefit under the federal old 
 11.5   age, survivors, and disability insurance program.  
 11.6      Sec. 10.  [EFFECTIVE DATE.] 
 11.7      Sections 1 to 9 are effective on the day following final 
 11.8   enactment. 
 11.9                              ARTICLE 3
 11.10              PUBLIC EMPLOYEES RETIREMENT ASSOCIATION
 11.11                    EARLY RETIREMENT INCENTIVES
 11.12     Section 1.  [APPLICATION.] 
 11.13     Unless otherwise specified, this article applies to 
 11.14  governmental subdivisions as specified in Minnesota Statutes, 
 11.15  section 353.01, subdivision 6, and public employees providing 
 11.16  service to the applicable employer and covered by the public 
 11.17  employees retirement association general plan or police and fire 
 11.18  plan under Minnesota Statutes, chapter 353, or the public 
 11.19  employees retirement association local government correctional 
 11.20  service retirement plan under Minnesota Statutes, chapter 353E. 
 11.21     Sec. 2.  [EMPLOYEE EXCLUSION.] 
 11.22     This article does not apply to any employee who provides 
 11.23  service to more than one governmental subdivision, or who earns 
 11.24  service credit during the time period covered by this article in 
 11.25  any Minnesota public employee plan, other than a volunteer fire 
 11.26  plan or a plan administered by the public employees retirement 
 11.27  association under conditions specified in this article. 
 11.28     Sec. 3.  [PHASED RETIREMENT.] 
 11.29     (a) This section applies to a public employee who: 
 11.30     (1) on the effective date of this section is regularly 
 11.31  scheduled to work 1,040 or more hours a year in a position 
 11.32  covered by an applicable retirement plan; 
 11.33     (2) enters into an agreement with the governmental 
 11.34  subdivision to work a reduced schedule that is both: 
 11.35     (i) a reduction of at least 25 percent from the number of 
 11.36  regularly scheduled work hours; and 
 12.1      (ii) 1,040 hours or less in the covered position; and 
 12.2      (3) at the time of entering into the agreement under clause 
 12.3   (2), meets the age and service requirements necessary to receive 
 12.4   a retirement benefit from the applicable plan. 
 12.5      (b) Notwithstanding any law to the contrary, for service 
 12.6   under an agreement entered into under paragraph (a), an employee 
 12.7   agrees to terminate public employment meeting requirements of 
 12.8   Minnesota Statutes, section 353.01, subdivision 11a, and agrees 
 12.9   to reemployment with the applicable governmental subdivision 
 12.10  under terms and conditions specified in this section.  If an 
 12.11  eligible public employee commences receipt of an annuity from a 
 12.12  plan specified in section 1, the provisions of Minnesota 
 12.13  Statutes, section 353.37, governing annuities of reemployed 
 12.14  annuitants shall not apply for the duration of the agreement. 
 12.15     (c) The number of hours worked, the work schedule, and the 
 12.16  duration of the phased retirement employment must be mutually 
 12.17  agreed to by the employee and the governmental subdivision.  The 
 12.18  governmental subdivision may not require a person to waive any 
 12.19  rights under a collective bargaining agreement as a condition of 
 12.20  participation in this section.  The governmental subdivision has 
 12.21  sole discretion to determine if and the extent to which phased 
 12.22  retirement under this section is available to an employee. 
 12.23     (d) Notwithstanding any law to the contrary, a person may 
 12.24  not earn service credit in the public employees retirement 
 12.25  association for employment covered under this section, and 
 12.26  employer contributions and payroll deductions for the retirement 
 12.27  fund must not be made based on earnings of a person working 
 12.28  under this section.  No change shall be made to a monthly 
 12.29  annuity or retirement allowance based on employment under this 
 12.30  section. 
 12.31     (e) A person who works under this section and meets the 
 12.32  definition of public employee under Minnesota Statutes, section 
 12.33  179A.03, subdivision 14, is a member of the appropriate 
 12.34  bargaining unit, is covered by the appropriate collective 
 12.35  bargaining contract or personnel policy, and is eligible for 
 12.36  health care coverage as provided in the collective bargaining 
 13.1   contract or personnel policy. 
 13.2      (f) An agreement under this section may apply only to work 
 13.3   through June 30, 2005. 
 13.4      Sec. 4.  [VOLUNTARY HOUR REDUCTION PLAN.] 
 13.5      (a) This section applies to a public employee who: 
 13.6      (1) on the effective date of this section is regularly 
 13.7   scheduled to work 1,040 or more hours a year in a position 
 13.8   covered by a pension plan administered by the public employees 
 13.9   retirement association; and 
 13.10     (2) enters into an agreement with a governmental 
 13.11  subdivision to work a reduced schedule of 1,040 or less hours in 
 13.12  the covered position. 
 13.13     (b) Notwithstanding any law to the contrary, for service 
 13.14  under an agreement entered into under paragraph (a), 
 13.15  contributions may be made to the applicable plan of the public 
 13.16  employees retirement association as if the employee had not 
 13.17  reduced hours.  The employee must pay the employee contributions 
 13.18  and the employer must pay employer and additional employer 
 13.19  contributions necessary to bring the service credit and salary 
 13.20  up to the level prior to the voluntary reduction in hours.  
 13.21  Contributions must be made in a time and manner prescribed by 
 13.22  the executive director of the public employees retirement 
 13.23  association. 
 13.24     (c) The number of hours worked, the work schedule, and the 
 13.25  duration of the voluntary hour reduction must be mutually agreed 
 13.26  to by the employee and the governmental subdivision.  The 
 13.27  governmental subdivision may not require a person to waive any 
 13.28  rights under a collective bargaining agreement as a condition of 
 13.29  participation under this section.  The governmental subdivision 
 13.30  has sole discretion to determine if and the extent to which 
 13.31  voluntary hour reduction under this section is available to an 
 13.32  employee. 
 13.33     (d) A person who works under this section and meets the 
 13.34  definition of public employee under Minnesota Statutes, section 
 13.35  179A.03, subdivision 14, is a member of an appropriate 
 13.36  bargaining unit, is covered by an appropriate collective 
 14.1   bargaining contract or personnel policy, and is eligible for 
 14.2   health care coverage as provided in a collective bargaining 
 14.3   contract or personnel policy. 
 14.4      (e) An agreement under this section may apply only to work 
 14.5   through June 30, 2005. 
 14.6      Sec. 5.  [VOLUNTARY UNPAID LEAVE OF ABSENCE.] 
 14.7      (a) Governmental subdivisions may allow employees to take 
 14.8   unpaid leaves of absence between June 1, 2003, and June 30, 
 14.9   2005.  Each governmental subdivision approving a leave may allow 
 14.10  the employee to continue accruing vacation and sick leave, be 
 14.11  eligible for paid holidays and insurance benefits, accrue 
 14.12  seniority, and accrue service credit and credited salary in the 
 14.13  public employees retirement association as if the employee had 
 14.14  actually been employed during the time of leave.  If the leave 
 14.15  of absence is for one full pay period or longer, any holiday pay 
 14.16  may be included in the first payroll warrant after return from 
 14.17  the leave of absence.  The governmental subdivision shall 
 14.18  attempt to grant requests for the unpaid leaves of absence 
 14.19  consistent with the need to continue efficient operation of the 
 14.20  governmental subdivision.  However, each governmental 
 14.21  subdivision shall retain discretion to grant or refuse to grant 
 14.22  requests for leaves of absence and to schedule and cancel 
 14.23  leaves, subject to the applicable provisions of collective 
 14.24  bargaining agreements and personnel policy. 
 14.25     (b) To receive eligible service credit, the member shall 
 14.26  pay an amount equal to the applicable employee contribution 
 14.27  rates.  If an employee pays the employee contribution for the 
 14.28  period of the leave under this section, the governmental 
 14.29  subdivision must pay the employer contribution and the 
 14.30  additional employer contribution.  The governmental subdivision 
 14.31  may, at its discretion, pay employee, employer, and additional 
 14.32  employer contributions to the public employees retirement 
 14.33  association for the period of leave under this section.  
 14.34  Contributions must be made in a time and manner prescribed by 
 14.35  the executive director of the public employees retirement 
 14.36  association. 
 15.1      Sec. 6.  [DESIGNATION OF POSITIONS; EMPLOYER DISCRETION.] 
 15.2      Before agreeing to an option under this article, a 
 15.3   governmental subdivision must designate the job classifications 
 15.4   or positions within job classifications that qualify for each 
 15.5   option.  The governmental subdivision may modify this 
 15.6   designation at any time.  Designation of positions eligible for 
 15.7   the options and participation of individual employees under this 
 15.8   act are at the sole discretion of the governmental subdivision.  
 15.9   Implementation of this act by the employer is not an unfair 
 15.10  labor practice under Minnesota Statutes, chapter 179A, or an 
 15.11  unfair discriminatory practice under Minnesota Statutes, chapter 
 15.12  363. 
 15.13     Sec. 7.  [PROGRAM APPLICATION REQUIREMENTS.] 
 15.14     (a) No agreement between an eligible public employee and a 
 15.15  governmental subdivision under this article is effective unless 
 15.16  the employee acknowledges acceptance of the terms of the 
 15.17  agreement in writing on a form prescribed by the public 
 15.18  employees retirement association executive director.  
 15.19     (b) A copy of the signed agreement must be transmitted to 
 15.20  the public employees retirement association executive director 
 15.21  within 30 days after the agreement is executed.  
 15.22     Sec. 8.  [RELATIONSHIP OF SECTIONS.] 
 15.23     (a) An employee covered by a phased retirement agreement 
 15.24  under section 3 may not be covered by the voluntary hour 
 15.25  reduction provisions of section 4 or by a voluntary unpaid leave 
 15.26  of absence agreement under section 5 during the same time period 
 15.27  or any later time period. 
 15.28     (b) An employee covered by the voluntary hour reduction 
 15.29  provisions of section 4: 
 15.30     (1) may not be covered by a phased retirement agreement 
 15.31  under section 3 during the same time period, but may be covered 
 15.32  by a phased retirement agreement under section 3 during a later 
 15.33  time period; and 
 15.34     (2) may be covered by the voluntary leave of absence 
 15.35  provision of section 5 during an earlier or later time period. 
 15.36     Sec. 9.  [GOVERNMENTAL SUBDIVISION LIMITATION.] 
 16.1      Notwithstanding Minnesota Statutes, section 353.01, 
 16.2   subdivision 6, paragraph (b), to the contrary, for purposes of 
 16.3   this article the public employees retirement association is not 
 16.4   a governmental subdivision. 
 16.5      Sec. 10.  [EXCLUSION DUE TO BENEFIT RECEIPT.] 
 16.6      Unless otherwise specified, this article does not apply to 
 16.7   an individual who is receiving a retirement annuity from any 
 16.8   retirement plan enumerated in Minnesota Statutes, section 
 16.9   356.30, or from any retirement plan governed by Minnesota 
 16.10  Statutes, section 69.77. 
 16.11     Sec. 11.  [EXCLUSION FOR SOCIAL SECURITY BENEFIT 
 16.12  ELIGIBILITY.] 
 16.13     This article does not apply if the individual is eligible 
 16.14  for the receipt of an unreduced benefit under the federal old 
 16.15  age, survivors, and disability insurance program.  
 16.16     Sec. 12.  [EFFECTIVE DATE.] 
 16.17     Sections 1 to 11 are effective on the day following final 
 16.18  enactment. 
 16.19                             ARTICLE 4
 16.20                  TEACHERS RETIREMENT ASSOCIATION
 16.21                     EXTENDED LEAVE PROVISIONS
 16.22     Section 1.  Minnesota Statutes 2002, section 122A.46, 
 16.23  subdivision 9, is amended to read: 
 16.24     Subd. 9.  [BENEFITS.] A teacher on an extended leave of 
 16.25  absence shall receive all of the health, accident, medical, 
 16.26  surgical and hospitalization insurance or benefits, for both the 
 16.27  teacher and the teacher's dependents, for which the teacher 
 16.28  would otherwise be eligible if not on an extended leave.  A 
 16.29  teacher shall receive the coverage if such coverage is available 
 16.30  from the school district's insurer, if the teacher requests the 
 16.31  coverage, and if the teacher either (a) reimburses the district 
 16.32  for the full amount of the premium necessary to maintain the 
 16.33  coverage within one month following preceding the district's 
 16.34  payment of the premium, or (b) if the district is wholly or 
 16.35  partially self-insured, pays the district, according to a 
 16.36  schedule agreed upon by the teacher and the school board, an 
 17.1   amount determined by the school board to be the amount that 
 17.2   would be charged for the coverage chosen by the teacher if the 
 17.3   school board purchased all health, accident, medical, surgical 
 17.4   and hospitalization coverage for its teachers from an 
 17.5   insurer.  From the day following final enactment to June 30, 
 17.6   2005, a school district may enter into an agreement with the 
 17.7   exclusive bargaining representative of teachers in the district 
 17.8   where the district agrees to pay all or a portion of the premium 
 17.9   for the coverage.  The agreement must include a sunset of 
 17.10  eligibility to qualify for the payment and must not be a 
 17.11  continuing part of the collective bargaining agreement.  
 17.12     Sec. 2.  Minnesota Statutes 2002, section 354.094, 
 17.13  subdivision 1, is amended to read: 
 17.14     Subdivision 1.  [SERVICE CREDIT CONTRIBUTIONS.] Upon 
 17.15  granting any extended leave of absence under section 122A.46 or 
 17.16  136F.43, the employing unit granting the leave must certify the 
 17.17  leave to the association on a form specified by the executive 
 17.18  director.  A member granted an extended leave of absence under 
 17.19  section 122A.46 or 136F.43 may pay employee contributions and 
 17.20  receive allowable service credit toward annuities and other 
 17.21  benefits under this chapter, for each year of the leave, 
 17.22  provided that the member and the employing board make the 
 17.23  required employer contribution in any proportion they may agree 
 17.24  upon, during the period of the leave.  From the day following 
 17.25  final enactment to June 30, 2005, the employer may enter into an 
 17.26  agreement with the exclusive bargaining representative of 
 17.27  teachers in the district under which all or a portion of the 
 17.28  employee's contribution is paid by the employer.  The agreement 
 17.29  must include a sunset of eligibility to qualify for the payment 
 17.30  and must not be a continuing part of the collective bargaining 
 17.31  agreement.  The leave period must not exceed five years.  A 
 17.32  member may not receive more than five years of allowable service 
 17.33  credit under this section.  The employee and employer 
 17.34  contributions must be based upon the rates of contribution 
 17.35  prescribed by section 354.42 for the salary received during the 
 17.36  year immediately preceding the extended leave.  Payments for the 
 18.1   years for which a member is receiving service credit while on 
 18.2   extended leave must be made on or before the later of June 30 of 
 18.3   each fiscal year for which service credit is received or within 
 18.4   30 days after first notification of the amount due, if requested 
 18.5   by the member, is given by the association.  No payment is 
 18.6   permitted after the following September 30.  Payments received 
 18.7   after June 30 must include interest at an annual rate of 8.5 
 18.8   percent from June 30 through the end of the month in which 
 18.9   payment is received.  Notwithstanding the provisions of any 
 18.10  agreements to the contrary, employee and employer contributions 
 18.11  may not be made to receive allowable service credit if the 
 18.12  member does not have full reinstatement rights as provided in 
 18.13  section 122A.46 or 136F.43, both during and at the end of the 
 18.14  extended leave. 
 18.15     Sec. 3.  [EFFECTIVE DATE.] 
 18.16     Sections 1 and 2 are effective on the day following final 
 18.17  enactment and apply to agreements in effect or entered into 
 18.18  after that date. 
 18.19                             ARTICLE 5
 18.20                    PUBLIC EMPLOYEES RETIREMENT
 18.21                        ASSOCIATION CHANGES
 18.22     Section 1.  Minnesota Statutes 2002, section 353.01, 
 18.23  subdivision 2d, is amended to read: 
 18.24     Subd. 2d.  [OPTIONAL MEMBERSHIP.] (a) Membership in the 
 18.25  association is optional by action of the individual employee for 
 18.26  the following public employees who meet the conditions set forth 
 18.27  in subdivision 2a: 
 18.28     (1) members of the coordinated plan who are also employees 
 18.29  of labor organizations as defined in section 353.017, 
 18.30  subdivision 1, for their employment by the labor organization 
 18.31  only if they elect to have membership under section 353.017, 
 18.32  subdivision 2; 
 18.33     (2) persons who are elected or persons who are appointed to 
 18.34  elected positions other than local governing body elected 
 18.35  positions who elect to participate by filing a written election 
 18.36  for membership; 
 19.1      (3) members of the association who are appointed by the 
 19.2   governor to be a state department head and who elect not to be 
 19.3   covered by the general state employees retirement plan of the 
 19.4   Minnesota state retirement system under section 352.021; and 
 19.5      (4) city managers as defined in section 353.028, 
 19.6   subdivision 1, who do not elect to be excluded from membership 
 19.7   in the association under section 353.028, subdivision 2; and 
 19.8      (5) employees of the port authority of the city of St. Paul 
 19.9   who were at least age 45 on January 1, 2003, and who elect to 
 19.10  participate by filing a written election for membership. 
 19.11     (b) Membership in the association is optional by action of 
 19.12  the governmental subdivision for the employees of the following 
 19.13  governmental subdivisions under the conditions specified: 
 19.14     (1) the Minnesota association of townships if the board of 
 19.15  the association, at its option, certifies to the executive 
 19.16  director that its employees are to be included for purposes of 
 19.17  retirement coverage, in which case the status of the association 
 19.18  as a participating employer is permanent; and 
 19.19     (2) a county historical society if the county in which the 
 19.20  historical society is located, at its option, certifies to the 
 19.21  executive director that the employees of the historical society 
 19.22  are to be county employees for purposes of retirement coverage 
 19.23  under this chapter.  The status as a county employee must be 
 19.24  accorded to all similarly situated county historical society 
 19.25  employees and, once established, must continue as long as a 
 19.26  person is an employee of the county historical society. 
 19.27     (c) For employees who are covered by paragraph (a), clause 
 19.28  (1), (2), or (3), or covered by paragraph (b), if the necessary 
 19.29  membership election is not made, the employee is excluded from 
 19.30  retirement coverage under this chapter.  For employees who are 
 19.31  covered by paragraph (a), clause (4), if the necessary election 
 19.32  is not made, the employee must become a member and have 
 19.33  retirement coverage under this chapter.  The option to become a 
 19.34  member, once exercised under this subdivision, may not be 
 19.35  withdrawn until termination of public service as defined under 
 19.36  subdivision 11a. 
 20.1      Sec. 2.  Minnesota Statutes 2002, section 353.01, 
 20.2   subdivision 6, is amended to read: 
 20.3      Subd. 6.  [GOVERNMENTAL SUBDIVISION.] (a) "Governmental 
 20.4   subdivision" means a county, city, town, school district within 
 20.5   this state, or a department or unit of state government, or any 
 20.6   public body whose revenues are derived from taxation, fees, 
 20.7   assessments or from other sources. 
 20.8      (b) Governmental subdivision also means the public 
 20.9   employees retirement association, the league of Minnesota 
 20.10  cities, the association of metropolitan municipalities, public 
 20.11  hospitals owned or operated by, or an integral part of, a 
 20.12  governmental subdivision or governmental subdivisions, the 
 20.13  association of Minnesota counties, the metropolitan intercounty 
 20.14  association, the Minnesota municipal utilities association, the 
 20.15  metropolitan airports commission, the Minneapolis employees 
 20.16  retirement fund for employment initially commenced after June 
 20.17  30, 1979, the range association of municipalities and schools, 
 20.18  soil and water conservation districts, economic development 
 20.19  authorities created or operating under sections 469.090 to 
 20.20  469.108, the port authority of the city of St. Paul, the Spring 
 20.21  Lake Park fire department, incorporated, and the Dakota county 
 20.22  agricultural society. 
 20.23     (c) Governmental subdivision does not mean any municipal 
 20.24  housing and redevelopment authority organized under the 
 20.25  provisions of sections 469.001 to 469.047; or any port authority 
 20.26  organized under sections 469.048 to 469.089 other than the port 
 20.27  authority of the city of St. Paul; or any hospital district 
 20.28  organized or reorganized prior to July 1, 1975, under sections 
 20.29  447.31 to 447.37 or the successor of the district, nor the 
 20.30  Minneapolis community development agency.  
 20.31     Sec. 3.  Minnesota Statutes 2002, section 353.028, 
 20.32  subdivision 2, is amended to read: 
 20.33     Subd. 2.  [ELECTION.] (a) A city manager may elect to be 
 20.34  excluded from membership in the association.  The election of 
 20.35  exclusion must be made within six months following the 
 20.36  commencement of employment, in writing on a form prescribed by 
 21.1   the executive director, and must be approved by a resolution of 
 21.2   the governing body of the city.  The election of exclusion is 
 21.3   not effective until it is filed with the executive director.  
 21.4   Membership of a city manager in the association ceases on the 
 21.5   date the written election is received by the executive director 
 21.6   or upon a later date specified.  The election to be excluded 
 21.7   from membership must include a provision agreeing that the 
 21.8   person will not at any time in the future seek authorization to 
 21.9   purchase service credit for any period of excluded service and 
 21.10  is irrevocable.  Employee and employer contributions made on 
 21.11  behalf of a person exercising the option to be excluded from 
 21.12  membership under this section must be refunded in accordance 
 21.13  with section 353.27, subdivision 7. 
 21.14     (b) A city manager who has elected exclusion under this 
 21.15  subdivision may elect to revoke that action by filing a written 
 21.16  notice with the executive director.  The notice must be on a 
 21.17  form prescribed by the executive director and must be approved 
 21.18  by a resolution of the governing body of the city.  Membership 
 21.19  of the city manager in the association resumes prospectively 
 21.20  from the date of the first day of the pay period for which 
 21.21  contributions were deducted or, if pay period coverage dates are 
 21.22  not provided, the date on which the notice of revocation or 
 21.23  contributions are received in the office of the association, 
 21.24  provided that the notice of revocation is received by the 
 21.25  association within 60 days of the receipt of contributions. 
 21.26     (c) An election under paragraph (b) is irrevocable.  Any 
 21.27  election under paragraph (a) or (b) must include a statement 
 21.28  that the individual will not seek authorization to purchase 
 21.29  service credit for any period of excluded service. 
 21.30     Sec. 4.  Minnesota Statutes 2002, section 353D.01, 
 21.31  subdivision 2, is amended to read: 
 21.32     Subd. 2.  [ELIGIBILITY.] (a) Eligibility to participate in 
 21.33  the defined contribution plan is available to: 
 21.34     (1) elected local government officials of a governmental 
 21.35  subdivision who elect to participate in the plan under section 
 21.36  353D.02, subdivision 1, and who, for the elected service 
 22.1   rendered to a governmental subdivision, are not members of the 
 22.2   public employees retirement association within the meaning of 
 22.3   section 353.01, subdivision 7; 
 22.4      (2) physicians who, if they did not elect to participate in 
 22.5   the plan under section 353D.02, subdivision 2, would meet the 
 22.6   definition of member under section 353.01, subdivision 7; 
 22.7      (3) basic and advanced life support emergency medical 
 22.8   service personnel employed by or providing services for any 
 22.9   public ambulance service or privately operated ambulance service 
 22.10  that receives an operating subsidy from a governmental entity 
 22.11  that elects to participate under section 353D.02, subdivision 3; 
 22.12  and 
 22.13     (4) members of a municipal rescue squad associated with 
 22.14  Litchfield in Meeker county, or of a county rescue squad 
 22.15  associated with Kandiyohi county, if an independent nonprofit 
 22.16  rescue squad corporation, incorporated under chapter 317A, 
 22.17  performing emergency management services, and if not affiliated 
 22.18  with a fire department or ambulance service and if its members 
 22.19  are not eligible for membership in that fire department's or 
 22.20  ambulance service's relief association or comparable pension 
 22.21  plan; and 
 22.22     (5) employees of the port authority of the city of St. Paul 
 22.23  who elect to participate in the plan under section 353D.02, 
 22.24  subdivision 5, and who are not members of the public employees 
 22.25  retirement association under section 353.01, subdivision 7. 
 22.26     (b) For purposes of this chapter, an elected local 
 22.27  government official includes a person appointed to fill a 
 22.28  vacancy in an elective office.  Service as an elected local 
 22.29  government official only includes service for the governmental 
 22.30  subdivision for which the official was elected by the 
 22.31  public-at-large.  Service as an elected local government 
 22.32  official ceases and eligibility to participate terminates when 
 22.33  the person ceases to be an elected official.  An elected local 
 22.34  government official does not include an elected county sheriff.  
 22.35     (c) Elected local government officials, physicians, first 
 22.36  response personnel and emergency medical service personnel, and 
 23.1   rescue squad personnel Individuals otherwise eligible to 
 23.2   participate in the plan under this subdivision who are currently 
 23.3   covered by a public or private pension plan because of their 
 23.4   employment or provision of services are not eligible to 
 23.5   participate in the public employees defined contribution plan.  
 23.6      (d) A former participant is a person who has terminated 
 23.7   eligible employment or service and has not withdrawn the value 
 23.8   of the person's individual account. 
 23.9      Sec. 5.  Minnesota Statutes 2002, section 353D.02, is 
 23.10  amended by adding a subdivision to read: 
 23.11     Subd. 5.  [ST. PAUL PORT AUTHORITY PERSONNEL.] Employees of 
 23.12  the port authority of the city of St. Paul who do not elect to 
 23.13  participate in the general employees retirement plan may elect 
 23.14  to participate in the plan by filing a membership application on 
 23.15  a form prescribed by the executive director of the association 
 23.16  authorizing contributions to be deducted from the employee's 
 23.17  salary.  Participation begins on the first day of the pay period 
 23.18  for which the contributions were deducted or, if pay period 
 23.19  coverage dates are not provided, the date on which the 
 23.20  membership application or the contributions are received in the 
 23.21  office of the association, whichever is received first, if the 
 23.22  membership application is received by the association within 60 
 23.23  days of the receipt of the contributions.  An election to 
 23.24  participate in the plan is irrevocable.  
 23.25     Sec. 6.  [PERA-GENERAL; PRIOR ST. PAUL PORT AUTHORITY 
 23.26  SERVICE CREDIT PURCHASE.] 
 23.27     Subdivision 1.  [ELIGIBILITY.] A full-time salaried 
 23.28  employee or a permanent part-time salaried employee of the port 
 23.29  authority of the city of St. Paul who was employed by the port 
 23.30  authority during all or part of the period from July 1, 1993, to 
 23.31  July 1, 2003, and who is a member of the general employees 
 23.32  retirement plan of the public employees retirement association 
 23.33  may purchase allowable service credit from the general employees 
 23.34  retirement plan. 
 23.35     Subd. 2.  [PURCHASABLE SERVICE; MAXIMUM.] (a) The service 
 23.36  credit that is purchasable under subdivision 1 is a period or 
 24.1   periods of employment by the port authority of the city of St. 
 24.2   Paul that would have been eligible service for coverage by the 
 24.3   general employees retirement plan of the public employees 
 24.4   retirement association if the service had been rendered after 
 24.5   July 1, 2003. 
 24.6      (b) The maximum period of allowable service credit in the 
 24.7   general employees retirement plan of the public employees 
 24.8   retirement association for purchase under this section is ten 
 24.9   years. 
 24.10     Subd. 3.  [PURCHASE PAYMENT REQUIREMENT.] (a) To purchase 
 24.11  the service credit, the payment amount must be calculated under 
 24.12  Minnesota Statutes, section 356.55. 
 24.13     (b) Notwithstanding any provision of Minnesota Statutes, 
 24.14  section 356.55, to the contrary, the prior service credit 
 24.15  purchase payment may be made in whole or in part on an 
 24.16  institution-to-institution basis from a plan qualified under the 
 24.17  federal Internal Revenue Code, sections 401(a), 401(k), or 
 24.18  414(h), or from an annuity qualified under the federal Internal 
 24.19  Revenue Code, section 403, or from a deferred compensation plan 
 24.20  under the federal Internal Revenue Code, section 457, to the 
 24.21  extent permitted by the applicable federal law.  In no event may 
 24.22  a prior service credit purchase transfer be paid directly to the 
 24.23  person purchasing the service. 
 24.24     Subd. 4.  [DOCUMENTATION; SERVICE CREDIT GRANT.] (a) An 
 24.25  eligible person described in subdivision 1 must provide any 
 24.26  documentation related to eligibility to make this service credit 
 24.27  purchase required by the executive director of the public 
 24.28  employees retirement association. 
 24.29     (b) Allowable service credit for the purchase period or 
 24.30  periods must be granted by the general employees retirement plan 
 24.31  of the public employees retirement association on behalf of the 
 24.32  eligible person upon receipt of the prior service credit 
 24.33  purchase payment amount. 
 24.34     Sec. 7.  [PRIOR SERVICE; VESTING.] 
 24.35     For purposes of vesting under Minnesota Statutes, section 
 24.36  353.29, subdivision 1, only, a full-time salaried employee or a 
 25.1   permanent part-time salaried employee of the port authority of 
 25.2   the city of St. Paul who was employed by the port authority on 
 25.3   July 1, 2003, and who is a member of the general employees 
 25.4   retirement plan of the public employees retirement association 
 25.5   may use months of employment with the port authority before that 
 25.6   date.  This service may not be used to calculate a retirement 
 25.7   annuity or a disability benefit provided for under Minnesota 
 25.8   Statutes, chapter 353.  
 25.9      Sec. 8.  [DEFINED CONTRIBUTION PLAN; ONE-TIME ELECTION.] 
 25.10     Employees of the port authority of the city of St. Paul who 
 25.11  do not exercise the right to become members of the general 
 25.12  employees retirement plan of the public employees retirement 
 25.13  association under section 1 may, by one-time election, choose to 
 25.14  participate in the public employees retirement association's 
 25.15  defined contribution plan under Minnesota Statutes, sections 
 25.16  353D.01 through 353D.10.  The election is irrevocable. 
 25.17     Sec. 9.  [EFFECTIVE DATE.] 
 25.18     (a) Sections 1 to 8 are effective on the day following 
 25.19  final enactment. 
 25.20     (b) Coverage under the general employees retirement plan of 
 25.21  the public employees retirement association under sections 1 and 
 25.22  2 commence on July 1, 2003. 
 25.23                             ARTICLE 6
 25.24                     LOCAL PENSION FUND CHANGES
 25.25     Section 1.  Minnesota Statutes 2002, section 383B.49, is 
 25.26  amended to read: 
 25.27     383B.49 [SUPPLEMENTAL RETIREMENT BENEFITS; REDEMPTION OF 
 25.28  SHARES.] 
 25.29     When requested to do so, in writing, on forms provided by 
 25.30  the county, by a participant, surviving spouse, a guardian of a 
 25.31  surviving child or a personal representative, whichever is 
 25.32  applicable, the county of Hennepin shall redeem shares in the 
 25.33  accounts of the Minnesota supplemental investment fund standing 
 25.34  in a participant's share account record under the following 
 25.35  circumstances and in accordance with the laws and regulations 
 25.36  governing the Minnesota supplemental investment fund: 
 26.1      (1) A participant who is no longer employed by the county 
 26.2   of Hennepin is entitled to receive the cash realized on the 
 26.3   redemption of the shares to the credit of the participant's 
 26.4   share account record of the person.  The participant may request 
 26.5   the redemption of all or a portion of the shares in the 
 26.6   participant's share account record of the person, but may not 
 26.7   request more than one redemption in any one calendar year.  If 
 26.8   only a portion of the shares in the participant's share account 
 26.9   record is requested to be redeemed the person may request to 
 26.10  redeem not less than 20 percent of the shares in any one 
 26.11  calendar year and the redemption must be completed in no more 
 26.12  than five years.  An election is irrevocable except that a 
 26.13  participant may request an amendment of the election to redeem 
 26.14  all of the person's remaining shares.  All requests under this 
 26.15  paragraph are subject to application to and approval of the 
 26.16  Hennepin county board administrator, in its the sole 
 26.17  discretion of the administrator.  
 26.18     (2) In the event of the death of a participant leaving a 
 26.19  surviving spouse, the surviving spouse is entitled to receive 
 26.20  the cash realized on the redemption of all or a portion of the 
 26.21  shares in the participant's share account record of the deceased 
 26.22  spouse, but in no event may the spouse request more than one 
 26.23  redemption in each calendar year.  If only a portion of the 
 26.24  shares in the participant's share account record is requested to 
 26.25  be redeemed, the surviving spouse may request the redemption of 
 26.26  not less than 20 percent of the shares in any one calendar 
 26.27  year.  Redemption must be completed in no more than five years.  
 26.28  An election is irrevocable except that the surviving spouse may 
 26.29  request an amendment of the election to redeem all of the 
 26.30  participant's remaining shares.  All requests under this 
 26.31  paragraph are subject to application to and approval of the 
 26.32  Hennepin county board administrator, in its the sole 
 26.33  discretion of the administrator.  Upon the death of the 
 26.34  surviving spouse, any shares remaining in the participant's 
 26.35  share account record must be redeemed by the county of Hennepin 
 26.36  and the cash realized from the redemption distributed to the 
 27.1   estate of the surviving spouse. 
 27.2      (3) In the event of the death of a participant leaving no 
 27.3   surviving spouse, but leaving a minor surviving child or minor 
 27.4   surviving children, the guardianship estate of the minor child 
 27.5   is, or the guardianship estates of the minor children are, 
 27.6   entitled to receive the cash realized on the redemption of all 
 27.7   shares to the credit of the participant's share account record 
 27.8   of the deceased participant.  In the event of minor surviving 
 27.9   children, the cash realized must be paid in equal shares to the 
 27.10  guardianship estates of the minor surviving children. 
 27.11     (4) In the event of the death of a participant leaving no 
 27.12  surviving spouse and no minor surviving children, the estate of 
 27.13  the deceased participant is entitled to receive the cash 
 27.14  realized on the redemption of all shares to the credit of the 
 27.15  participant's share account record of the deceased participant. 
 27.16     Sec. 2.  Minnesota Statutes 2002, section 383B.493, is 
 27.17  amended to read: 
 27.18     383B.493 [WITHDRAWAL FROM PARTICIPATION.] 
 27.19     Notwithstanding Laws 1982, chapter 450, or any other law to 
 27.20  the contrary, a Hennepin county employee participating in the 
 27.21  Hennepin county supplemental retirement program pursuant to Laws 
 27.22  1982, chapter 450 may, in the event of an unforeseeable 
 27.23  emergency, apply to the county to discontinue participation in 
 27.24  the program.  Employees who are no longer participating in the 
 27.25  program may apply for the redemption of all shares credited to 
 27.26  their share account record.  Applications are subject to 
 27.27  approval of the Hennepin county board of commissioners 
 27.28  administrator in its the sole discretion of the administrator.  
 27.29  For the purposes of this section, the term "unforeseeable 
 27.30  emergency" shall mean a severe financial hardship to the 
 27.31  participant resulting from a sudden and unexpected illness or 
 27.32  accident of the participant or a person dependent upon the 
 27.33  participant, loss of participant's property due to casualty, or 
 27.34  other similar extraordinary and unforeseeable circumstances 
 27.35  arising as a result of events beyond the control of the 
 27.36  participant.  Applications based on foreseeable expenditures 
 28.1   normally budgetable shall not be approved.  A participant 
 28.2   exercising the option provided by this section shall be 
 28.3   ineligible for further participation in the supplemental 
 28.4   retirement program. 
 28.5      Sec. 3.  [EVELETH RETIRED POLICE AND FIRE TRUST FUND; AD 
 28.6   HOC POSTRETIREMENT ADJUSTMENT.] 
 28.7      In addition to the current pensions and other retirement 
 28.8   benefits payable, the pensions and retirement benefits payable 
 28.9   to retired police officers and firefighters and their surviving 
 28.10  spouses by the Eveleth police and fire trust fund are increased 
 28.11  by $100 per month.  Increases are retroactive to January 1, 2003.
 28.12     Sec. 4.  [EFFECTIVE DATE.] 
 28.13     (a) Sections 1 and 2 are effective upon approval by the 
 28.14  Hennepin county board of commissioners and compliance with 
 28.15  Minnesota Statutes, section 645.021. 
 28.16     (b) Section 3 is effective on the day after the date on 
 28.17  which the Eveleth city council and the chief clerical officer of 
 28.18  the city of Eveleth comply with Minnesota Statutes, section 
 28.19  645.021, subdivisions 2 and 3. 
 28.20                             ARTICLE 7
 28.21                  GENERAL SERVICE CREDIT PURCHASES
 28.22     Section 1.  Minnesota Statutes 2002, section 356.55, 
 28.23  subdivision 7, is amended to read: 
 28.24     Subd. 7.  [EXPIRATION OF PURCHASE PAYMENT DETERMINATION 
 28.25  PROCEDURE.] (a) This section expires and is repealed on July 
 28.26  1, 2003 2004. 
 28.27     (b) Authority for any public pension plan to accept a prior 
 28.28  service credit payment that is calculated in a timely fashion 
 28.29  under this section expires on October 1, 2003 2004. 
 28.30     Sec. 2.  Laws 1999, chapter 222, article 16, section 16, as 
 28.31  amended by Laws 2002, chapter 392, article 7, section 1, is 
 28.32  amended to read: 
 28.33     Sec. 16.  [REPEALER.] 
 28.34     Sections 1 to 13 are repealed on May 16, 2003 2004. 
 28.35     Sec. 3.  Laws 2000, chapter 461, article 4, section 4, is 
 28.36  amended to read: 
 29.1      Sec. 4.  [EFFECTIVE DATE; SUNSET REPEALER.] 
 29.2      (a) Sections 1, 2, and 3 are effective on the day following 
 29.3   final enactment. 
 29.4      (b) Sections 1, 2, and 3 are repealed on May 16, 2003 2004. 
 29.5      Sec. 4.  Laws 2000, chapter 461, article 12, section 20, as 
 29.6   amended by Laws 2002, chapter 392, article 7, section 2, is 
 29.7   amended to read: 
 29.8      Sec. 20.  [EFFECTIVE DATE.] 
 29.9      (a) Sections 4, 5, and 11 to 20 are effective on the day 
 29.10  following final enactment. 
 29.11     (b) Sections 1, 2, 3, and 6 to 10 are effective on the day 
 29.12  following final enactment and apply retroactively to a faculty 
 29.13  member of the Lake Superior College who was granted an extended 
 29.14  leave of absence under article 19, section 4, of the united 
 29.15  technical college educators master agreement for the 1999-2000 
 29.16  academic year prior to March 20, 2000. 
 29.17     (c) Sections 5, 11, and 14, paragraph (c), expire on May 
 29.18  16, 2003 2004.  
 29.19     Sec. 5.  Laws 2001, First Special Session chapter 10, 
 29.20  article 6, section 21, as amended by Laws 2002, chapter 392, 
 29.21  article 7, section 3, is amended to read: 
 29.22     Sec. 21.  [EXPIRATION DATE.] 
 29.23     (a) The amendments in sections 1, 2, 3, 4, 10, 12, 16, 17, 
 29.24  18, 19, and 20 expire May 16, 2003 2004. 
 29.25     (b) Sections 9 and 15 expire May 16, 2003 2004. 
 29.26     Sec. 6.  [REPEALER.] 
 29.27     Minnesota Statutes 2002, sections 354.541 and 354A.109, are 
 29.28  repealed on May 16, 2004. 
 29.29     Sec. 7.  [EFFECTIVE DATE.] 
 29.30     Sections 1 to 6 are effective on the day following final 
 29.31  enactment. 
 29.32                             ARTICLE 8
 29.33                     SUPPLEMENTAL PENSION PLANS
 29.34     Section 1.  Minnesota Statutes 2002, section 356.24, 
 29.35  subdivision 1, is amended to read: 
 29.36     Subdivision 1.  [RESTRICTION; EXCEPTIONS.] It is unlawful 
 30.1   for a school district or other governmental subdivision or state 
 30.2   agency to levy taxes for, or to contribute public funds to a 
 30.3   supplemental pension or deferred compensation plan that is 
 30.4   established, maintained, and operated in addition to a primary 
 30.5   pension program for the benefit of the governmental subdivision 
 30.6   employees other than: 
 30.7      (1) to a supplemental pension plan that was established, 
 30.8   maintained, and operated before May 6, 1971; 
 30.9      (2) to a plan that provides solely for group health, 
 30.10  hospital, disability, or death benefits; 
 30.11     (3) to the individual retirement account plan established 
 30.12  by chapter 354B; 
 30.13     (4) to a plan that provides solely for severance pay under 
 30.14  section 465.72 to a retiring or terminating employee; 
 30.15     (5) for employees other than personnel employed by the 
 30.16  board of trustees of the Minnesota state colleges and 
 30.17  universities and covered under the higher education supplemental 
 30.18  retirement plan under chapter 354C, if the supplemental plan 
 30.19  coverage is provided for in a personnel policy of the public 
 30.20  employer or in the collective bargaining agreement between the 
 30.21  public employer and the exclusive representative of public 
 30.22  employees in an appropriate unit, in an amount matching employee 
 30.23  contributions on a dollar for dollar basis, but not to exceed an 
 30.24  employer contribution of $2,000 a year per employee; 
 30.25     (i) to the state of Minnesota deferred compensation plan 
 30.26  under section 352.96; or 
 30.27     (ii) in payment of the applicable portion of the 
 30.28  contribution made to any investment eligible under section 
 30.29  403(b) of the Internal Revenue Code, if the employing unit has 
 30.30  complied with any applicable pension plan provisions of the 
 30.31  Internal Revenue Code with respect to the tax-sheltered annuity 
 30.32  program during the preceding calendar year; 
 30.33     (6) for personnel employed by the board of trustees of the 
 30.34  Minnesota state colleges and universities and not covered by 
 30.35  clause (5), to the supplemental retirement plan under chapter 
 30.36  354C, if the supplemental plan coverage is provided for in a 
 31.1   personnel policy or in the collective bargaining agreement of 
 31.2   the public employer with the exclusive representative of the 
 31.3   covered employees in an appropriate unit, in an amount matching 
 31.4   employee contributions on a dollar for dollar basis, but not to 
 31.5   exceed an employer contribution of $2,700 a year for each 
 31.6   employee; 
 31.7      (7) to a supplemental plan or to a governmental trust to 
 31.8   save for postretirement health care expenses qualified for 
 31.9   tax-preferred treatment under the Internal Revenue Code, if the 
 31.10  supplemental plan coverage is provided for in a personnel policy 
 31.11  or in the collective bargaining agreement of a public employer 
 31.12  with the exclusive representative of the covered employees in an 
 31.13  appropriate unit; 
 31.14     (8) to the laborer's national industrial pension fund for 
 31.15  the employees of a governmental subdivision who are covered by a 
 31.16  collective bargaining agreement that provides for coverage by 
 31.17  that fund and that sets forth a fund contribution rate, but not 
 31.18  to exceed an employer contribution of $2,000 per year per 
 31.19  employee; 
 31.20     (9) to the plumbers' and pipefitters' national pension fund 
 31.21  or to a plumbers' and pipefitters' local pension fund for the 
 31.22  employees of a governmental subdivision who are covered by a 
 31.23  collective bargaining agreement that provides for coverage by 
 31.24  that fund and that sets forth a fund contribution rate, but not 
 31.25  to exceed an employer contribution of $2,000 per year per 
 31.26  employee; 
 31.27     (10) to the international union of operating engineers 
 31.28  pension fund for the employees of a governmental subdivision who 
 31.29  are covered by a collective bargaining agreement that provides 
 31.30  for coverage by that fund and that sets forth a fund 
 31.31  contribution rate, but not to exceed an employer contribution of 
 31.32  $2,000 per year per employee; or 
 31.33     (11) to a supplemental plan organized and operated under 
 31.34  the federal Internal Revenue Code, as amended, that is wholly 
 31.35  and solely funded by the employee's accumulated sick leave, 
 31.36  accumulated vacation leave, and accumulated severance pay. 
 32.1      Sec. 2.  [EFFECTIVE DATE.] 
 32.2      Section 1 is effective the day after final enactment. 
 32.3                              ARTICLE 9
 32.4                     VOLUNTEER FIREFIGHTER RELIEF
 32.5                         ASSOCIATION CHANGES
 32.6      Section 1.  Minnesota Statutes 2002, section 424A.02, 
 32.7   subdivision 3, is amended to read: 
 32.8      Subd. 3.  [FLEXIBLE SERVICE PENSION MAXIMUMS.] (a) Annually 
 32.9   on or before August 1 of each year as part of the certification 
 32.10  of the financial requirements and minimum municipal 
 32.11  obligation made pursuant to determined under section 69.772, 
 32.12  subdivision 4, or 69.773, subdivision 5, as applicable, the 
 32.13  secretary or some other official of the relief association 
 32.14  designated in the bylaws of each relief association shall 
 32.15  calculate and certify to the governing body of the applicable 
 32.16  qualified municipality the average amount of available financing 
 32.17  per active covered firefighter for the most recent three-year 
 32.18  period.  The amount of available financing shall include any 
 32.19  amounts of fire state aid received or receivable by the relief 
 32.20  association, any amounts of municipal contributions to the 
 32.21  relief association raised from levies on real estate or from 
 32.22  other available revenue sources exclusive of fire state aid, and 
 32.23  one-tenth of the amount of assets in excess of the accrued 
 32.24  liabilities of the relief association calculated pursuant to 
 32.25  sections under section 69.772, subdivision 2; 69.773, 
 32.26  subdivisions 2 and 4; or 69.774, subdivision 2, if any.  
 32.27     (b) The maximum service pension which the relief 
 32.28  association has authority to provide for in its bylaws for 
 32.29  payment to a member retiring after the calculation date when the 
 32.30  minimum age and service requirements specified in subdivision 1 
 32.31  are met must be determined using the table in paragraph (c) or 
 32.32  (d), whichever applies. 
 32.33     (c) For a relief association where the governing bylaws 
 32.34  provide for a monthly service pension to a retiring member, the 
 32.35  maximum monthly service pension amount per month for each year 
 32.36  of service credited that may be provided for in the bylaws is 
 33.1   the maximum service pension figure corresponding to the average 
 33.2   amount of available financing per active covered firefighter: 
 33.3     Minimum Average Amount of      Maximum Service Pension
 33.4     Available Financing per        Amount Payable per Month
 33.5          Firefighter               for Each Year of Service
 33.6            $...                             $ .25
 33.7              42                               .50
 33.8              84                              1.00
 33.9             126                              1.50
 33.10            168                              2.00
 33.11            209                              2.50
 33.12            252                              3.00
 33.13            294                              3.50
 33.14            335                              4.00
 33.15            378                              4.50
 33.16            420                              5.00
 33.17            503                              6.00
 33.18            587                              7.00
 33.19            672                              8.00
 33.20            755                              9.00
 33.21            839                             10.00
 33.22            923                             11.00
 33.23           1007                             12.00
 33.24           1090                             13.00
 33.25           1175                             14.00
 33.26           1259                             15.00
 33.27           1342                             16.00
 33.28           1427                             17.00
 33.29           1510                             18.00
 33.30           1594                             19.00
 33.31           1677                             20.00
 33.32           1762                             21.00
 33.33           1845                             22.00
 33.34           1888                             22.50
 33.35           1929                             23.00
 33.36           2014                             24.00
 34.1            2098                             25.00
 34.2            2183                             26.00
 34.3            2267                             27.00
 34.4            2351                             28.00
 34.5            2436                             29.00
 34.6            2520                             30.00
 34.7            2604                             31.00
 34.8            2689                             32.00
 34.9            2773                             33.00
 34.10           2857                             34.00
 34.11           2942                             35.00
 34.12           3026                             36.00
 34.13           3110                             37.00
 34.14           3963 3194                        38.00
 34.15           4047 3278                        39.00
 34.16           4137 3362                        40.00
 34.17     Effective beginning December 31, 2000: 
 34.18           4227 3446                        41.00
 34.19           4317 3530                        42.00
 34.20           4407 3614                        43.00
 34.21           4497 3698                        44.00
 34.22     Effective beginning December 31, 2001: 
 34.23           4587 3782                        45.00
 34.24           4677 3866                        46.00
 34.25           4767 3950                        47.00
 34.26           4857 4034                        48.00
 34.27     Effective beginning December 31, 2002: 
 34.28           4947 4118                        49.00
 34.29           5037 4202                        50.00
 34.30           5127 4286                        51.00
 34.31           5217 4370                        52.00
 34.32     Effective beginning December 31, 2003: 
 34.33           5307 4454                        53.00
 34.34           5397 4538                        54.00
 34.35           5487 4622                        55.00
 34.36           5577 4706                        56.00
 35.1      (d) For a relief association in which the governing bylaws 
 35.2   provide for a lump sum service pension to a retiring member, the 
 35.3   maximum lump sum service pension amount for each year of service 
 35.4   credited that may be provided for in the bylaws is the maximum 
 35.5   service pension figure corresponding to the average amount of 
 35.6   available financing per active covered firefighter for the 
 35.7   applicable specified period: 
 35.8    Minimum Average Amount         Maximum Lump Sum Service
 35.9    of Available Financing         Pension Amount Payable
 35.10      per Firefighter             for Each Year of Service
 35.11          $..                              $10
 35.12           11                               20
 35.13           16                               30
 35.14           23                               40
 35.15           27                               50
 35.16           32                               60
 35.17           43                               80
 35.18           54                              100
 35.19           65                              120
 35.20           77                              140
 35.21           86                              160
 35.22           97                              180
 35.23          108                              200
 35.24          131                              240
 35.25          151                              280
 35.26          173                              320
 35.27          194                              360
 35.28          216                              400
 35.29          239                              440
 35.30          259                              480
 35.31          281                              520
 35.32          302                              560
 35.33          324                              600
 35.34          347                              640
 35.35          367                              680
 35.36          389                              720
 36.1           410                              760
 36.2           432                              800
 36.3           486                              900
 36.4           540                             1000
 36.5           594                             1100
 36.6           648                             1200
 36.7           702                             1300
 36.8           756                             1400
 36.9           810                             1500
 36.10          864                             1600
 36.11          918                             1700
 36.12          972                             1800
 36.13         1026                             1900
 36.14         1080                             2000
 36.15         1134                             2100
 36.16         1188                             2200
 36.17         1242                             2300
 36.18         1296                             2400
 36.19         1350                             2500
 36.20         1404                             2600
 36.21         1458                             2700
 36.22         1512                             2800
 36.23         1566                             2900
 36.24         1620                             3000
 36.25         1672                             3100
 36.26         1726                             3200
 36.27         1753                             3250
 36.28         1780                             3300
 36.29         1820                             3375
 36.30         1834                             3400
 36.31         1888                             3500
 36.32         1942                             3600
 36.33         1996                             3700
 36.34         2023                             3750
 36.35         2050                             3800
 36.36         2104                             3900
 37.1          2158                             4000
 37.2          2212                             4100
 37.3          2265                             4200
 37.4          2319                             4300
 37.5          2373                             4400
 37.6          2427                             4500
 37.7          2481                             4600
 37.8          2535                             4700
 37.9          2589                             4800
 37.10         2643                             4900
 37.11         2697                             5000
 37.12         2751                             5100
 37.13         2805                             5200
 37.14         2859                             5300
 37.15         2913                             5400
 37.16         2967                             5500
 37.17     Effective beginning December 31, 2000: 
 37.18         3021                             5600
 37.19         3075                             5700
 37.20         3129                             5800
 37.21         3183                             5900
 37.22         3237                             6000
 37.23     Effective beginning December 31, 2001: 
 37.24         3291                             6100
 37.25         3345                             6200
 37.26         3399                             6300
 37.27         3453                             6400
 37.28         3507                             6500
 37.29     Effective beginning December 31, 2002: 
 37.30         3561                             6600
 37.31         3615                             6700
 37.32         3669                             6800
 37.33         3723                             6900
 37.34         3777                             7000
 37.35     Effective beginning December 31, 2003: 
 37.36         3831                             7100
 38.1          3885                             7200
 38.2          3939                             7300
 38.3          3993                             7400
 38.4          4047                             7500
 38.5      (e) For a relief association in which the governing bylaws 
 38.6   provide for a monthly benefit service pension as an alternative 
 38.7   form of service pension payment to a lump sum service pension, 
 38.8   the maximum service pension amount for each pension payment type 
 38.9   must be determined using the applicable table contained in this 
 38.10  subdivision. 
 38.11     (f) If a relief association establishes a service pension 
 38.12  in compliance with the applicable maximum contained in paragraph 
 38.13  (c) or (d) and the minimum average amount of available financing 
 38.14  per active covered firefighter is subsequently reduced because 
 38.15  of a reduction in fire state aid or because of an increase in 
 38.16  the number of active firefighters, the relief association may 
 38.17  continue to provide the prior service pension amount specified 
 38.18  in its bylaws, but may not increase the service pension amount 
 38.19  until the minimum average amount of available financing per 
 38.20  firefighter under the table in paragraph (c) or (d), whichever 
 38.21  applies, permits. 
 38.22     (g) No relief association is authorized to provide a 
 38.23  service pension in an amount greater than the largest applicable 
 38.24  flexible service pension maximum amount even if the amount of 
 38.25  available financing per firefighter is greater than the 
 38.26  financing amount associated with the largest applicable flexible 
 38.27  service pension maximum. 
 38.28     Sec. 2.  [BENEFIT RATIFICATION; WHITE BEAR LAKE.] 
 38.29     Notwithstanding Minnesota Statutes, section 424A.02, 
 38.30  subdivisions 3 and 3a, to the contrary, the service pension 
 38.31  amounts specified in the bylaws of the White Bear Lake fire 
 38.32  department relief association following bylaw amendments in 
 38.33  January 1999 and prior to the effective date of this section are 
 38.34  ratified. 
 38.35     Sec. 3.  [STUDY OF STATEWIDE LUMP SUM VOLUNTEER FIREFIGHTER 
 38.36  RETIREMENT PLAN; CREATION OF TASK FORCE.] 
 39.1      Subdivision 1.  [TASK FORCE MEMBERSHIP.] (a) A statewide 
 39.2   volunteer firefighter retirement plan study task force is 
 39.3   created. 
 39.4      (b) The task force members are: 
 39.5      (1) four members appointed by the president of the 
 39.6   Minnesota area relief association coalition; 
 39.7      (2) four members appointed by the president of the 
 39.8   Minnesota state fire department association; 
 39.9      (3) four members appointed by the president of the 
 39.10  Minnesota state fire chiefs association; 
 39.11     (4) four members appointed by the board of directors of the 
 39.12  League of Minnesota Cities; 
 39.13     (5) two members appointed by the board of directors of the 
 39.14  Insurance Federation of Minnesota; 
 39.15     (6) two members appointed by the board of directors of the 
 39.16  Minnesota Association of Farm Mutual Insurance Companies; and 
 39.17     (7) the Minnesota state auditor or the auditor's designee. 
 39.18     (c) Appointments must be made on or before July 1, 2003.  
 39.19  If the appointment is not made in a timely way, or if there is a 
 39.20  vacancy, the Minnesota state auditor shall appoint the task 
 39.21  force member or the replacement member. 
 39.22     (d) The chair of the task force will be selected by the 
 39.23  task force.  
 39.24     (e) Staffing services for the task force must be provided 
 39.25  by the management analysis division. 
 39.26     Subd. 2.  [TASK FORCE DUTIES.] (a) The task force shall 
 39.27  conduct fact finding regarding the creation of a voluntary 
 39.28  statewide firefighter retirement plan. 
 39.29     (b) To determine the design and components of the potential 
 39.30  statewide plan, the task force shall contract with the 
 39.31  management analysis division of the department of administration 
 39.32  to conduct a statewide survey of current volunteer firefighter 
 39.33  relief associations on the topic and shall conduct a series of 
 39.34  public meetings throughout the state in which comments from 
 39.35  volunteer firefighter relief association members would be 
 39.36  obtained. 
 40.1      (c) The task force shall retain an actuary to study and 
 40.2   recommend a benefit level or levels of a potential statewide 
 40.3   volunteer firefighter retirement plan and the funding 
 40.4   requirements for the plan. 
 40.5      (d) The task force shall recommend the investment vehicle 
 40.6   or vehicles to be utilized by the plan, the administration and 
 40.7   corporate governance structure of the plan, the incentives 
 40.8   needed to formulate the plan, the limitations applicable to the 
 40.9   plan, and the state resources needed to be dedicated to the plan.
 40.10     Subd. 3.  [REPORT.] The task force shall prepare a report 
 40.11  detailing its findings about a potential statewide volunteer 
 40.12  firefighter retirement plan.  The report is due on January 15, 
 40.13  2005, and must be filed with the legislative reference library; 
 40.14  the chair of the legislative commission on pensions and 
 40.15  retirement; the chair of the state and local government 
 40.16  operations committee of the senate; the chair of the state 
 40.17  government budget division of the senate finance committee; the 
 40.18  chair of the governmental operations and veterans affairs policy 
 40.19  committee of the house of representatives; and the chair of the 
 40.20  state government finance committee of the house of 
 40.21  representatives. 
 40.22     Subd. 4.  [DATA DISCLOSURE.] In performing their duties 
 40.23  under this section, the task force, the management analysis 
 40.24  division of the state department of administration, and the 
 40.25  consulting actuary retained by the task force shall have access 
 40.26  to relevant data on volunteer firefighter relief associations 
 40.27  held by the office of the state auditor and must comply with the 
 40.28  relevant provisions of Minnesota Statutes, chapter 13. 
 40.29     Subd. 5.  [LOAN.] To pay for the activities of the task 
 40.30  force under this section, the cost of retaining an actuary, and 
 40.31  the cost of administrative support provided by the state auditor 
 40.32  and the commissioner of administration, the commissioner of 
 40.33  revenue shall lend to the state auditor an amount equal to 1.95 
 40.34  percent of the state fire aid available for distribution to 
 40.35  municipalities as calculated under Minnesota Statutes, section 
 40.36  69.021, subdivision 5, minus the amount to be distributed to 
 41.1   cities of the first class and Burnsville, Cloquet, Faribault, 
 41.2   Mankato, Moorhead, Richfield, Rochester, St. Cloud, St. Louis 
 41.3   Park, South St. Paul, Virginia, and West St. Paul.  The amount 
 41.4   distributed to other eligible municipalities must be decreased 
 41.5   proportionally in an amount equal to the amount of the loan.  
 41.6   The loan must be repaid no later than June 30, 2005, by any 
 41.7   statewide volunteer retirement plan established in response to 
 41.8   the recommendations of the task force or, if no plan is 
 41.9   established, by the municipalities receiving a distribution of 
 41.10  state fire aid other than those listed in this subdivision. 
 41.11     Sec. 4.  [EFFECTIVE DATE.] 
 41.12     Sections 1 to 3 are effective the day following final 
 41.13  enactment. 
 41.14                             ARTICLE 10
 41.15                    TEACHER PLAN ACTUARIAL STUDY
 41.16     Section 1.  [ACTUARIAL STUDY OF COSTS TO RESTRUCTURE 
 41.17  TEACHER PLANS.] 
 41.18     Subdivision 1.  [STUDY MANDATED.] The actuary retained by 
 41.19  the legislative commission on pensions and retirement shall 
 41.20  prepare an additional actuarial valuation report, using the 
 41.21  results of the 2003 actuarial valuation reports prepared under 
 41.22  Minnesota Statutes, section 356.215, that considers the 
 41.23  feasibility of restructuring the Minnesota teachers retirement 
 41.24  association, the Minneapolis teachers retirement fund 
 41.25  association, the St. Paul teachers retirement fund association, 
 41.26  and the Duluth teachers retirement plan and fund association 
 41.27  into a new restructured fund. 
 41.28     Subd. 2.  [CONTENTS OF STUDY.] The actuarial valuation 
 41.29  report must be based on the proposals put forth in the report 
 41.30  mandated by the legislature in Laws 2001, First Special Session 
 41.31  chapter 10, article 11, section 20, and filed February 15, 2002, 
 41.32  including changes to the postretirement adjustment, benefits, 
 41.33  and restructuring administrative costs and including asset 
 41.34  transfers. 
 41.35     Subd. 3.  [INFORMATION PROVIDED.] The executive director of 
 41.36  the teachers retirement association, the executive secretary of 
 42.1   the Duluth teachers retirement fund association, the executive 
 42.2   director of the St. Paul teachers retirement fund association, 
 42.3   and the executive director of the Minneapolis teachers 
 42.4   retirement fund association must consult with the task force 
 42.5   established under Laws 2001, First Special Session chapter 10, 
 42.6   article 11, section 20, and must provide the commission-retained 
 42.7   actuary with all necessary information requested for the 
 42.8   preparation of this report. 
 42.9      Subd. 4.  [COSTS.] The cost of the actuarial valuation 
 42.10  report mandated in this section will be paid by the pension 
 42.11  funds named in this legislation.  The cost must be allocated 
 42.12  equally between the four pension funds.  The executive director 
 42.13  of the Minneapolis teachers retirement fund association shall 
 42.14  serve as the fiscal agent for this study, shall pay its cost, 
 42.15  and shall be reimbursed by the other three retirement funds for 
 42.16  their appropriate share. 
 42.17     Subd. 5.  [FILING DATE.] The report must be filed by 
 42.18  January 15, 2004, with the chair of the legislative commission 
 42.19  on pensions and retirement, the chair of the senate committee on 
 42.20  state and local government operations, and the chair of the 
 42.21  house committee on government operations and veterans affairs 
 42.22  policy. 
 42.23     Sec. 2.  [EFFECTIVE DATE.] 
 42.24     Section 1 is effective on the day following final enactment.
 42.25                             ARTICLE 11
 42.26              PUBLIC EMPLOYEES RETIREMENT ASSOCIATION: 
 42.27                       HOSPITAL PRIVATIZATION
 42.28     Section 1.  Minnesota Statutes 2002, section 353F.02, 
 42.29  subdivision 4, is amended to read: 
 42.30     Subd. 4.  [MEDICAL FACILITY.] "Medical facility" means: 
 42.31     (1) the Glencoe area health center; 
 42.32     (2) the Luverne public hospital; 
 42.33     (3) the Waconia-Ridgeview medical center; and 
 42.34     (4) the Kanabec hospital; and 
 42.35     (5) the Renville county hospital in Olivia. 
 42.36     Sec. 2.  [EFFECTIVE DATE.] 
 43.1      Section 1 is effective upon the latter of: 
 43.2      (1) the day after the governing body of Renville county and 
 43.3   its chief clerical officer timely complete their compliance with 
 43.4   Minnesota Statutes, section 645.021, subdivisions 2 and 3; and 
 43.5      (2) the first day of the month next following certification 
 43.6   to the Renville county board by the executive director of the 
 43.7   public employees retirement association that the actuarial 
 43.8   accrued liability of the special benefit coverage proposed for 
 43.9   extension to the privatized Renville county hospital employees 
 43.10  under section 1 does not exceed the actuarial gain otherwise to 
 43.11  be accrued by the public employees retirement association, as 
 43.12  calculated by the consulting actuary retained by the legislative 
 43.13  commission on pensions and retirement.  The cost of the 
 43.14  actuarial calculations must be borne by the Renville county 
 43.15  hospital. 
 43.16                             ARTICLE 12
 43.17                  MINNEAPOLIS FIREFIGHTERS RELIEF
 43.18                        ASSOCIATION CHANGES
 43.19     Section 1.  Minnesota Statutes 2002, section 423C.03, 
 43.20  subdivision 3, is amended to read: 
 43.21     Subd. 3.  [COMPENSATION OF OFFICERS AND BOARD MEMBERS.] 
 43.22  Notwithstanding any other law to the contrary, the association 
 43.23  may provide for payment of the following salaries to its 
 43.24  officers and board members: 
 43.25     (1) the executive secretary may receive a salary not 
 43.26  exceeding 30 50 percent of the maximum salary of a first grade 
 43.27  firefighter; 
 43.28     (2) the president may receive a salary not exceeding ten 
 43.29  percent of the maximum salary of a first grade firefighter; and 
 43.30     (3) all other elected members of the board may receive a 
 43.31  salary not exceeding 2.5 percent of the maximum salary of a 
 43.32  first grade firefighter. 
 43.33     Sec. 2.  Minnesota Statutes 2002, section 423C.08, is 
 43.34  amended to read: 
 43.35     423C.08 [MEMBER CONTRIBUTION REFUND TO BENEFICIARY UPON 
 43.36  DEATH.] 
 44.1      If an active, deferred, or retired member of the 
 44.2   association dies and no survivor benefit is payable, the 
 44.3   designated beneficiary of the decedent or, if none, the legal 
 44.4   representative of the estate of the decedent is entitled, upon 
 44.5   application, to a refund.  The refund shall be an amount equal 
 44.6   to the member contributions to the credit of the decedent, plus 
 44.7   interest on those contributions at an annual compounded rate of 
 44.8   five percent from the first day of the month following the date 
 44.9   of the contribution to the first day of the month following the 
 44.10  date of death of the decedent, reduced by the sum of any service 
 44.11  pension or disability benefit previously paid by the fund to the 
 44.12  decedent. 
 44.13     Sec. 3.  [INTENT.] 
 44.14     Section 2 is intended to bring the Minneapolis firefighters 
 44.15  relief association's statutory provision which provides for a 
 44.16  refund of member contributions where the decedent does not leave 
 44.17  a surviving spouse or children in conformance with Minnesota 
 44.18  Statutes 2002, section 423A.18. 
 44.19     Sec. 4.  [EFFECTIVE DATE.] 
 44.20     (a) The board of the Minneapolis firefighters relief 
 44.21  association may increase the salary of the executive secretary 
 44.22  subject to the applicable maximum set forth in section 1. 
 44.23     (b) Any salary increase under paragraph (a) may be 
 44.24  effective on September 1, 2002, or any time thereafter as 
 44.25  designated by the relief association board providing that the 
 44.26  requirements specified in section 1 are satisfied during the 
 44.27  applicable time period. 
 44.28     (c) Section 2 is effective retroactive to September 25, 
 44.29  2001.  Section 3 is effective on the day following final 
 44.30  enactment. 
 44.31                             ARTICLE 13
 44.32                INDIVIDUAL SERVICE CREDIT PURCHASES
 44.33     Section 1.  Laws 2000, chapter 461, article 19, section 6, 
 44.34  is amended to read:  
 44.35     Sec. 6.  [MTRFA; PRIOR SERVICE CREDIT PURCHASE FOR 
 44.36  UNCREDITED TEACHING SERVICE PERIODS.] 
 45.1      (a) An eligible person described in paragraph (b) is 
 45.2   entitled to purchase allowable service credit from the 
 45.3   Minneapolis teachers retirement fund association basic program 
 45.4   for the periods of teaching employment specified in paragraph 
 45.5   (c) by making the payment required under Minnesota Statutes, 
 45.6   section 356.55. 
 45.7      (b) An eligible person is a person who:  
 45.8      (1) was employed by special school district No. 1 
 45.9   (Minneapolis) as a long call reserve teacher from October 1972 
 45.10  to June 1973 and was covered by the Minneapolis employees 
 45.11  retirement fund; 
 45.12     (2) was employed by special school district No. 1 
 45.13  (Minneapolis) as a school social worker at Franklin junior high 
 45.14  school from August 28, 1973, through June 12, 1974, and from 
 45.15  August 29, 1974, through June 11, 1975, without retirement 
 45.16  coverage; 
 45.17     (3) was employed by special school district No. 1 
 45.18  (Minneapolis) as a school social worker at North high school 
 45.19  from August 29, 1975, through December 19, 1975, covered by the 
 45.20  Minneapolis teachers retirement fund association; 
 45.21     (4) was retained by special school district No. 1 
 45.22  (Minneapolis) in the capacity of a school social worker at North 
 45.23  high school as an hourly wage social worker from August 1976 
 45.24  through June 1983 without retirement coverage; and 
 45.25     (5) is currently employed by Hennepin county covered by the 
 45.26  public employees retirement association.  
 45.27     (c) The periods for allowable service credit purchase are 
 45.28  August 28, 1973, through June 12, 1974; and August 29, 1974, 
 45.29  through June 11, 1975.  
 45.30     (d) An eligible person must provide any relevant 
 45.31  documentation related to eligibility to make this service credit 
 45.32  purchase required by the executive director of the Minneapolis 
 45.33  teachers retirement fund association.  
 45.34     (e) Allowable service credit for the purchase periods must 
 45.35  be granted by the Minneapolis teachers retirement fund 
 45.36  association to the account of the eligible person upon receipt 
 46.1   of the prior service credit purchase payment amount.  Authority 
 46.2   provided by this section is voided if payment is not made before 
 46.3   July 1, 2003, or before commencing receipt of an annuity from 
 46.4   the Minneapolis teachers retirement fund association, whichever 
 46.5   is earlier.  
 46.6      (f) The prior service credit purchase payment amount shall 
 46.7   be computed by the actuary retained by the legislative 
 46.8   commission on pensions and retirement.  That computation must 
 46.9   give recognition, in applying the process stated in Minnesota 
 46.10  Statutes, section 356.55, give recognition to the liabilities 
 46.11  that would be created in the Minneapolis teachers retirement 
 46.12  fund association and other Minnesota public pension funds due to 
 46.13  the service credit purchase.  
 46.14     (g) Following receipt of that purchase payment amount, the 
 46.15  executive director of the Minneapolis teachers retirement fund 
 46.16  association shall allocate and transmit that amount to the 
 46.17  applicable pension administrations, as determined under 
 46.18  paragraph (f). 
 46.19     Sec. 2.  [PUBLIC EMPLOYEES POLICE AND FIRE PLAN; PURCHASE 
 46.20  OF PRIOR SERVICE CREDIT.] 
 46.21     Subdivision 1.  [AUTHORIZATION.] (a) A member of the public 
 46.22  employees police and fire retirement plan who was initially 
 46.23  employed as a police officer by the city of St. Louis Park, who 
 46.24  was subsequently employed as the public safety director by the 
 46.25  metropolitan airports commission, who is currently on a leave of 
 46.26  absence from the metropolitan airports commission, and who has 
 46.27  at least three years of allowable service credit with the public 
 46.28  employees police and fire retirement plan is entitled to 
 46.29  purchase up to 11.333 years of allowable service credit for 
 46.30  employment as a full time police officer by the city of St. 
 46.31  Louis Park if the employment was covered by a local relief 
 46.32  association governed by Minnesota Statutes, section 69.77. 
 46.33     (b) The authorization under paragraph (a) applies 
 46.34  notwithstanding any contrary provision of Minnesota Statutes, 
 46.35  section 353A.10.  To purchase the service credit, the amount of 
 46.36  $183,329.38 must be paid.  The purchase payment may be a 
 47.1   combination of the following: 
 47.2      (1) amounts transferred from the person's federal Internal 
 47.3   Revenue Code section 457 deferred compensation plan on an 
 47.4   institution-to-institution basis; 
 47.5      (2) any amount accrued by and potentially payable to the 
 47.6   person by the metropolitan airports commission under the 
 47.7   applicable employment benefit plan as accumulated sick leave, 
 47.8   transferred on an institution-to-institution basis; and 
 47.9      (3) the balance paid by the eligible person under paragraph 
 47.10  (a). 
 47.11     (c) The authorization under paragraph (a) applies only if 
 47.12  the person and the person's spouse waive any right to receive a 
 47.13  current or deferred service pension or retirement annuity or a 
 47.14  current disability benefit under the former St. Louis Park 
 47.15  police relief association benefit plan for that service. 
 47.16     (d) Authority to make the payment under this section 
 47.17  expires on September 15, 2003.  
 47.18     Subd. 2.  [APPLICATION AND DOCUMENTATION.] A person who 
 47.19  desires to purchase service credit under subdivision 1 must 
 47.20  apply in writing with the executive director of the public 
 47.21  employees retirement association to make the purchase.  The 
 47.22  application must include all necessary documentation of the 
 47.23  person's qualifications to make the purchase, signed written 
 47.24  permission to allow the executive director to request and 
 47.25  receive necessary verification of applicable facts and 
 47.26  eligibility requirements, and any other relevant information 
 47.27  that the executive director may require. 
 47.28     Subd. 3.  [SERVICE CREDIT GRANT.] Allowable service credit 
 47.29  for the purchase period must be granted by the public employees 
 47.30  police and fire retirement plan to the purchasing person only 
 47.31  upon receipt of the purchase payment amount.  Payment must be 
 47.32  made before the person's effective date of retirement. 
 47.33     Sec. 3.  [TEACHERS RETIREMENT ASSOCIATION; SERVICE CREDIT 
 47.34  PURCHASE FOR SABBATICAL LEAVES.] 
 47.35     (a) Notwithstanding Minnesota Statutes, section 354.092, or 
 47.36  any other law to the contrary, an eligible person described in 
 48.1   paragraph (b) is entitled to purchase not more than three years 
 48.2   of allowable service credit from the teachers retirement 
 48.3   association for sabbatical leave as defined in Minnesota 
 48.4   Statutes, section 122A.49. 
 48.5      (b) An eligible person is a person who: 
 48.6      (1) worked as a teacher for independent school district No. 
 48.7   191, Burnsville-Eagan-Savage; 
 48.8      (2) was on sabbatical leave at some time between January 1, 
 48.9   1982, and December 31, 1989; and 
 48.10     (3) did not receive service credit for time on sabbatical 
 48.11  leave because the leave was not properly reported to the 
 48.12  teachers retirement association. 
 48.13     (c) An eligible person described in paragraph (b) must 
 48.14  apply with the executive director of the teachers retirement 
 48.15  association to make a service credit purchase under this 
 48.16  section.  The application must be in writing and must include 
 48.17  all necessary documentation of the applicability of this section 
 48.18  and any other relevant information that the executive director 
 48.19  may require. 
 48.20     (d) Allowable service credit for the purchase periods must 
 48.21  be granted by the teachers retirement association to the account 
 48.22  of an eligible person upon receipt of the portion of the prior 
 48.23  service credit purchase payment amount payable under paragraph 
 48.24  (e) in a lump sum by the applicable eligible person. 
 48.25     (e) Notwithstanding Minnesota Statutes, section 356.55 or 
 48.26  356.551, whichever is applicable, an eligible person may pay 
 48.27  before September 1, 2003, or the date of termination from 
 48.28  service, whichever is earlier, an amount equal to the employee 
 48.29  contribution rate or rates in effect during the applicable 
 48.30  sabbatical leave period or periods specified in paragraph (b) 
 48.31  applied to the actual salary rate or rates in effect during that 
 48.32  period or periods, plus annual compound interest at the rate of 
 48.33  8.5 percent from the midpoint of each applicable sabbatical 
 48.34  leave period, to the date on which the payment is actually 
 48.35  made.  Independent school district No. 191 must pay the 
 48.36  remaining balance of the prior service credit purchase payment 
 49.1   amount calculated under Minnesota Statutes, section 356.55 or 
 49.2   356.551, whichever is applicable, within 30 days of the payment 
 49.3   by an eligible person.  The executive director of the teachers 
 49.4   retirement association must notify the superintendent of 
 49.5   independent school district No. 191 of its payment amount and 
 49.6   payment due date if an eligible person makes the required 
 49.7   payment. 
 49.8      (f) If independent school district No. 191 fails to pay its 
 49.9   portion of the required prior service credit purchase payment 
 49.10  amount, the executive director of the teachers retirement 
 49.11  association must notify the commissioner of finance of that fact 
 49.12  and the commissioner of finance must order that the required 
 49.13  employer payment be deducted from the next subsequent payment or 
 49.14  payments of state education aid to the school district and be 
 49.15  transmitted to the teachers retirement association. 
 49.16     Sec. 4.  [EFFECTIVE DATE.] 
 49.17     Sections 1 to 3 are effective on the day following final 
 49.18  enactment. 
 49.19                             ARTICLE 14
 49.20                    VARIOUS ONE PERSON AND SMALL
 49.21                      GROUP RETIREMENT CHANGES
 49.22     Section 1.  [SPECIAL SCHOOL DISTRICT NO. 1; QUALIFIED 
 49.23  PART-TIME TEACHER PROGRAM RETROACTIVE COVERAGE.] 
 49.24     (a) Notwithstanding any provision of Minnesota Statutes, 
 49.25  section 354A.094, to the contrary, the Minneapolis teachers 
 49.26  retirement fund association must accept the application for 
 49.27  full-time retirement coverage filed by special school district 
 49.28  No. 1, for the 2001-2002 school year, for a teacher who: 
 49.29     (1) was born on March 10, 1950; 
 49.30     (2) is a basic plan member of the Minneapolis teachers 
 49.31  retirement fund association; 
 49.32     (3) first became a Minneapolis teachers retirement fund 
 49.33  association member in August 1972; and 
 49.34     (4) entered into a job sharing arrangement with another 
 49.35  Minneapolis teachers retirement fund association member for the 
 49.36  2001-2002 school year but failed to enter into a qualified 
 50.1   part-time teacher agreement for that school year due to employer 
 50.2   error. 
 50.3      (b) A person described in paragraph (a) is authorized to 
 50.4   receive full-time salary and service credit in the Minneapolis 
 50.5   teachers retirement fund association basic program for service 
 50.6   under Minnesota Statutes, section 354A.094, for the 2001-2002 
 50.7   school year, if all conditions required by this section are met. 
 50.8      (c) To receive the full-time equivalent service and salary 
 50.9   credit for the 2001-2002 school year provided by this section, 
 50.10  an eligible individual described in paragraph (a) must pay the 
 50.11  applicable employee contribution under Minnesota Statutes, 
 50.12  section 354A.12, subdivision 1, on the difference between the 
 50.13  amount of the person's compensation from which employee 
 50.14  contributions were actually deducted and the amount of the 
 50.15  person's full-time equivalent salary under Minnesota Statutes, 
 50.16  section 354A.094, subdivision 4.  Payment under this paragraph 
 50.17  must include 8.5 percent interest, compounded annually, on the 
 50.18  additional contribution amounts, computed from the date the 
 50.19  additional contributions would have occurred if deducted from 
 50.20  pay, until paid. 
 50.21     (d) If payment is made under paragraph (c), following 
 50.22  notification by the Minneapolis teachers retirement fund 
 50.23  association, special school district No. 1, Minneapolis, may 
 50.24  make payment under Minnesota Statutes, section 356.55 or 
 50.25  356.551, whichever is applicable, reflecting the increased 
 50.26  annuity value that would occur if the eligible individual were 
 50.27  included in the qualified part-time teacher program under 
 50.28  Minnesota Statutes, section 354A.094, during the 2001-2002 
 50.29  school year, after deducting amounts paid under paragraph (c).  
 50.30  If special school district No. 1, Minneapolis, does not pay the 
 50.31  balance within 30 days of notification by the executive director 
 50.32  of the Minneapolis teachers retirement fund association of the 
 50.33  payment of the member contribution payment by the eligible 
 50.34  person under paragraph (c), the executive director shall notify 
 50.35  the commissioner of finance of that fact and the commissioner 
 50.36  shall deduct from any state aid payable to the school district 
 51.1   that amount, plus interest on that amount of 1.5 percent per 
 51.2   month for each month or portion of a month that has elapsed from 
 51.3   the effective date of this section. 
 51.4      (e) Payments under this section must be made in a lump sum 
 51.5   to the Minneapolis teachers retirement fund association.  
 51.6   Payment under paragraph (c) must occur on or before June 30, 
 51.7   2003, or the effective date of retirement, whichever is 
 51.8   earlier.  Payment by the employer under paragraph (d) must be 
 51.9   made within 30 days following payment by the eligible employee. 
 51.10     (f) The eligible person must provide any relevant 
 51.11  documentation that the Minneapolis teachers retirement fund 
 51.12  association may request. 
 51.13     Sec. 2.  [DULUTH TEACHERS RETIREMENT FUND ASSOCIATION; 
 51.14  AUTHORIZATION TO MAKE PAYMENT OF EMPLOYEE AND EMPLOYER 
 51.15  CONTRIBUTIONS.] 
 51.16     (a) Notwithstanding any provision of law to the contrary, 
 51.17  an eligible person described in paragraph (b) is authorized to 
 51.18  pay employee and employer contributions to the Duluth teachers 
 51.19  retirement fund association for the period described in 
 51.20  paragraph (c). 
 51.21     (b) An eligible person is a person who: 
 51.22     (1) was born on October 13, 1949; 
 51.23     (2) was initially employed by independent school district 
 51.24  No. 709, Duluth, on December 4, 1972; 
 51.25     (3) is a current employee of independent school district 
 51.26  No. 709, Duluth, and is a current member of the Duluth teachers 
 51.27  retirement fund association; 
 51.28     (4) was employed on a part-time basis by independent school 
 51.29  district No. 709, Duluth, for the 2001-2002 school year; and 
 51.30     (5) was not notified of the right to pay employee and 
 51.31  employer contributions to the Duluth teachers retirement fund 
 51.32  association under Minnesota Statutes, section 354A.094, while 
 51.33  employed on a part-time basis for the 2001-2002 school year. 
 51.34     (c) The purchase period is September 4, 2001, to June 7, 
 51.35  2002. 
 51.36     (d) The payment amount shall be the product of the 
 52.1   following: 
 52.2      (1) the total of the employee and employer contribution 
 52.3   rates of the Duluth teachers retirement fund association 
 52.4   prescribed in Minnesota Statutes, section 354A.12; and 
 52.5      (2) the salary amount equal to the difference between the 
 52.6   salary the eligible person would have earned from independent 
 52.7   school district No. 709, Duluth, had the eligible person worked 
 52.8   on a full-time basis during the 2001-2002 school year and the 
 52.9   total salary the eligible person actually earned from 
 52.10  independent school district No. 709, Duluth, during the 
 52.11  2001-2002 school year. 
 52.12     (e) Interest is payable on the payment amount in paragraph 
 52.13  (d) using the preretirement interest rate assumption specified 
 52.14  in Minnesota Statutes, section 356.215, subdivision 8, 
 52.15  compounded annually, accruing from June 30, 2002, to the date 
 52.16  the payment is received in the office of the Duluth teachers 
 52.17  retirement fund association. 
 52.18     (f) Credit for the higher salary for the purchase period 
 52.19  must be granted by the Duluth teachers retirement fund 
 52.20  association to the eligible person upon receipt of payment of 
 52.21  the employee and employer contribution amount. 
 52.22     (g) Notwithstanding Minnesota Statutes, section 354A.094, 
 52.23  subdivision 4, independent school district No. 709, Duluth, is 
 52.24  not permitted to pay any portion of the payment amount. 
 52.25     (h) The authority to make payment of employee and employer 
 52.26  contributions expires 60 days after enactment or on the date of 
 52.27  the termination of active service by the eligible person, 
 52.28  whichever occurs earlier. 
 52.29     Sec. 3.  [SURVIVOR BENEFITS.] 
 52.30     Notwithstanding any provision of Minnesota Statutes, 
 52.31  section 353.657, subdivision 1, requiring a specified period of 
 52.32  marriage to obtain survivor benefits, the surviving spouse of a 
 52.33  firefighter who was born on March 11, 1969, and who died in an 
 52.34  accident on February 6, 2000, is entitled to survivor benefits 
 52.35  provided in Minnesota Statutes, section 353.657. 
 52.36     Sec. 4.  [MSRS-GENERAL; REFUND ELIGIBILITY IN CERTAIN 
 53.1   INSTANCES.] 
 53.2      Notwithstanding any provision of Minnesota Statutes, 
 53.3   section 352.22, subdivision 1, to the contrary, a person who 
 53.4   previously has been employed as a state employee, who was placed 
 53.5   on a medical leave of absence before April 1, 2002, and who was 
 53.6   still on the medical leave on April 1, 2003, is eligible to 
 53.7   receive a refund under Minnesota Statutes, section 352.22, if 
 53.8   the person has not again become a state employee covered by the 
 53.9   system on the refund application date. 
 53.10     Sec. 5.  [PUBLIC EMPLOYEES RETIREMENT ASSOCIATION COVERAGE 
 53.11  TERMINATION.] 
 53.12     Subdivision 1.  [ELIGIBILITY.] (a) An eligible individual 
 53.13  specified in paragraph (b) is authorized to apply for a 
 53.14  retirement annuity, provided necessary age and service 
 53.15  requirements are met, under Minnesota Statutes, section 353.29 
 53.16  or 353.30, as applicable, as further specified under subdivision 
 53.17  2. 
 53.18     (b) An eligible individual is an individual who: 
 53.19     (1) was employed as a Beltrami county employee and became a 
 53.20  member of the public employees retirement association general 
 53.21  plan due to that service on June 1, 1991; 
 53.22     (2) was elected to the Bemidji city council and took office 
 53.23  in January 2001; 
 53.24     (3) elected under law then applicable to have public 
 53.25  employees retirement association general plan coverage for the 
 53.26  city council elected service; and 
 53.27     (4) terminated Beltrami county employment but is unable to 
 53.28  commence receipt of a public employees retirement association 
 53.29  general plan annuity because of the continuing public employees 
 53.30  retirement association general plan coverage for the elected 
 53.31  city council service. 
 53.32     Subd. 2.  [RETIREMENT ANNUITY.] (a) Notwithstanding an 
 53.33  irrevocable election to participate in the public employees 
 53.34  retirement association general plan as an elected official and 
 53.35  continuation of elected service, an eligible individual under 
 53.36  subdivision 1, paragraph (b), is deemed to have terminated 
 54.1   membership under Minnesota Statutes, section 353.01, subdivision 
 54.2   11b, following the termination of the Beltrami county employment.
 54.3      (b) If the requirements of paragraph (a) are satisfied, the 
 54.4   eligible individual may apply for a retirement annuity under 
 54.5   Minnesota Statutes, section 353.29 or 353.30, as applicable.  In 
 54.6   computing the annuity, the public employees retirement 
 54.7   association must exclude salary due to the elected Bemidji city 
 54.8   council service.  Deferred annuity augmentation under Minnesota 
 54.9   Statutes, section 353.71, applies to this annuity. 
 54.10     Subd. 3.  [TREATMENT OF BEMIDJI CITY COUNCIL CONTRIBUTIONS 
 54.11  TO THE PUBLIC EMPLOYEES RETIREMENT ASSOCIATION.] (a) All 
 54.12  employee contributions to the public employees retirement 
 54.13  association coordinated plan by an eligible individual in 
 54.14  subdivision 1, paragraph (b), due to the elected Bemidji city 
 54.15  council service, and all corresponding employer contributions, 
 54.16  must be determined. 
 54.17     (b) An eligible individual under subdivision 1, paragraph 
 54.18  (b), must elect, within one year of the effective date of this 
 54.19  section or upon termination of elective service, whichever is 
 54.20  earlier, a refund under Minnesota Statutes, section 353.34, 
 54.21  subdivision 2, of employee contributions determined under 
 54.22  paragraph (a), or coverage by the public employees defined 
 54.23  contribution plan under Minnesota Statutes, chapter 353D, as 
 54.24  further specified in paragraph (c). 
 54.25     (c) If public employee defined contribution plan coverage 
 54.26  is elected under paragraph (b), contributions to that plan 
 54.27  commence as of the first day of the pay period following this 
 54.28  election, and accumulated employee and employer contributions 
 54.29  determined under paragraph (a) must be transferred with six 
 54.30  percent annual interest to an account for the eligible 
 54.31  individual in the public employees defined contribution plan. 
 54.32     (d) If no election is made by an eligible individual by the 
 54.33  required date in paragraph (b), the individual is assumed to 
 54.34  have elected the refund indicated in paragraph (b). 
 54.35     (e) Upon an election under paragraph (b), or a mandatory 
 54.36  refund under paragraph (d), all rights in the public employees 
 55.1   retirement association coordinated plan due to elected Bemidji 
 55.2   city council service are forfeited and may not be reestablished. 
 55.3      Sec. 6.  [EFFECTIVE DATE.] 
 55.4      (a) Sections 1 to 5 are effective on the day following 
 55.5   final enactment. 
 55.6      (b) Section 3 applies retroactively to the surviving spouse 
 55.7   of a person who died on or after February 1, 2000.