1.1 	A bill for an act
1.2 	relating to retirement; various public pension plans;
1.3 	clarifying and revising various plan provisions;
1.4 	eliminating obsolete provisions; defining final
1.5 	average salary; modifying the definition of allowable
1.6 	service to include time on strike; permitting judges
1.7 	to purchase service credit for an authorized leave;
1.8 	requiring specified payments; clarifying references to
1.9 	actuarial services in determining actuarial
1.10 	equivalence; defining covered salary to include
1.11 	certain employer contributions to supplemental
1.12 	retirement plans; specifying itemized detail of plan
1.13 	administrative expenses in annual financial reporting;
1.14 	excluding police officers of the University of
1.15 	Minnesota from the public employees police and fire
1.16 	fund; clarifying collection procedures relating to
1.17 	charter schools; adding a uniform nonassignment and
1.18 	legal process exemption provision; adding employees of
1.19 	Bridges Medical Services, Hutchinson Area Health Care,
1.20 	and Northfield Hospital to privatization coverage;
1.21 	extending date for filing special law approval with
1.22 	the secretary of state for the RenVilla Nursing Home;
1.23 	requiring the privatization periodic filing of updated
1.24 	copies of articles of incorporation and bylaws;
1.25 	modifying a higher education individual retirement
1.26 	account plan investment option provision; implementing
1.27 	the recommendations of the Volunteer Firefighter
1.28 	Relief Association working group of the state auditor;
1.29 	modifying the trigger date for filing financial
1.30 	reports; revising the per firefighter financing
1.31 	requirements for monthly benefit service pensions;
1.32 	modifying the options for crediting interest on
1.33 	deferred service pensions; clarifying the deferred
1.34 	service pension options available to defined
1.35 	contribution plans; providing for the crediting of
1.36 	service during military service leaves; requiring the
1.37 	amortization of experience losses; clarifying the
1.38 	compliance requirements for the qualification for fire
1.39 	state aid; modifying a limit on mutual fund
1.40 	investments; clarifying corporate stock and exchange
1.41 	traded funds investment authority; modifying the
1.42 	municipal representation requirements on relief
1.43 	association governing boards; clarifying exemptions
1.44 	from process and taxation; providing that certain laws
1.45 	do not apply to the consolidation of specified
1.46 	volunteer firefighter relief associations; providing
2.1 	an ad hoc postretirement adjustment to Eveleth police
2.2 	and fire trust fund benefit recipients; authorizing
2.3 	the Maplewood Firefighters Relief Association to
2.4 	transfer assets to the Oakdale Firefighters Relief
2.5 	Association to cover service credits earned by certain
2.6 	individuals; appropriating money; amending Minnesota
2.7 	Statutes 2004, sections 3A.01, subdivisions 1, 2, 6,
2.8 	8, by adding subdivisions; 3A.011; 3A.02, subdivisions
2.9 	1, 1b, 3, 4, 5; 3A.03, subdivisions 1, 2; 3A.04,
2.10 	subdivisions 1, 2, 3, 4, by adding a subdivision;
2.11 	3A.05; 3A.07; 3A.10, subdivision 1; 3A.12; 3A.13;
2.12 	69.011, subdivision 2b, by adding a subdivision;
2.13 	69.021, subdivisions 5, 11; 69.051, subdivisions 1,
2.14 	1a; 69.33; 69.771; 69.772, subdivisions 3, 4; 69.773,
2.15 	subdivisions 4, 5; 69.775; 352.01, subdivisions 2a, 4,
2.16 	5, 12, 21, 23, by adding a subdivision; 352.021,
2.17 	subdivisions 1, 2, 3, 4; 352.04, subdivisions 1, 12;
2.18 	352.041, subdivisions 1, 2, 3, 5; 352.115,
2.19 	subdivisions 2, 3; 352.15, subdivisions 1, 3, 4;
2.20 	352.22, subdivision 10; 352.87, subdivision 3; 352.91,
2.21 	by adding a subdivision; 352.93, subdivision 1;
2.22 	352B.01, subdivisions 1, 2, 3; 352B.02, subdivision
2.23 	1e; 352B.071; 352C.021, by adding a subdivision;
2.24 	352C.091, subdivision 1; 352D.01; 352D.015,
2.25 	subdivisions 3, 4; 352D.03; 352D.05, subdivision 4;
2.26 	352D.085, subdivision 1; 352D.09, subdivision 5;
2.27 	352D.12; 353.01, subdivisions 6, 10, 14, 32, 33, by
2.28 	adding a subdivision; 353.025; 353.026; 353.027;
2.29 	353.028; 353.14; 353.15, subdivisions 1, 3; 353.27,
2.30 	subdivision 11; 353.271; 353.28, subdivisions 5, 6;
2.31 	353.29, subdivision 3; 353.31, subdivision 1c; 353.32,
2.32 	subdivision 9; 353.33, subdivisions 3, 12; 353.64, by
2.33 	adding a subdivision; 353.651, subdivision 3; 353.656,
2.34 	subdivision 1; 353F.02, subdivision 4; 354.05,
2.35 	subdivision 7, by adding a subdivision; 354.091;
2.36 	354.10, subdivisions 1, 3, 4; 354.33, subdivision 5;
2.37 	354.39; 354.41, subdivision 2; 354.42, by adding a
2.38 	subdivision; 354.44, subdivisions 2, 6; 354A.011,
2.39 	subdivision 3a, by adding a subdivision; 354A.021,
2.40 	subdivision 5, by adding a subdivision; 354A.097,
2.41 	subdivision 1; 354A.31, subdivisions 4, 4a, 5;
2.42 	354B.25, subdivision 2; 356.20, subdivision 4;
2.43 	356.215, subdivision 8; 356.216; 356.24, subdivision
2.44 	1; 356.551; 356A.06, subdivision 7; 422A.01,
2.45 	subdivisions 6, 11, by adding a subdivision; 422A.06,
2.46 	subdivision 7; 422A.10, subdivisions 1, 2; 422A.15,
2.47 	subdivision 1; 422A.16, subdivision 9; 422A.22,
2.48 	subdivisions 1, 3, 4, 6; 422A.231; 422A.24; 423B.17;
2.49 	423C.09; 424A.02, subdivisions 3, 4, 7; 424A.04,
2.50 	subdivision 1; 424B.10, subdivision 1; 490.121,
2.51 	subdivisions 1, 4, 6, 7, 13, 14, 15, 20, 21, 22, by
2.52 	adding subdivisions; 490.122; 490.123, subdivisions 1,
2.53 	1a, 1b, 1c, 2, 3; 490.124, subdivisions 1, 2, 3, 4, 5,
2.54 	8, 9, 10, 11, 12, 13; 490.125, subdivision 1; 490.126;
2.55 	490.133; Laws 1999, chapter 222, article 16, section
2.56 	16, as amended; Laws 2000, chapter 461, article 4,
2.57 	section 4, as amended; Laws 2004, chapter 267, article
2.58 	12, section 4; proposing coding for new law in
2.59 	Minnesota Statutes, chapters 352C; 356; 424A;
2.60 	proposing coding for new law as Minnesota Statutes,
2.61 	chapter 490A; repealing Minnesota Statutes 2004,
2.62 	sections 3A.01, subdivisions 3, 4, 6a, 7; 3A.02,
2.63 	subdivision 2; 3A.04, subdivision 1; 3A.09; 352.119,
2.64 	subdivision 1; 352.15, subdivision 1a; 352C.01;
2.65 	352C.011; 352C.021; 352C.031; 352C.033; 352C.04;
2.66 	352C.051; 352C.09; 352C.091, subdivisions 2, 3;
2.67 	353.15, subdivision 2; 353.29, subdivision 2; 353.34,
2.68 	subdivision 3b; 353.36, subdivisions 2, 2a, 2b, 2c;
2.69 	353.46, subdivision 4; 353.651, subdivision 2;
2.70 	353.663; 353.74; 353.75; 354.10, subdivision 2;
2.71 	354.59; 422A.22, subdivisions 2, 5; 422A.221; 490.021;
3.1 	490.025, subdivisions 1, 2, 3, 4, 6; 490.101; 490.102;
3.2 	490.103; 490.105; 490.106; 490.107; 490.108; 490.109;
3.3 	490.1091; 490.12; 490.121, subdivisions 2, 3, 5, 8, 9,
3.4 	10, 11, 12, 16, 17, 18, 19, 20.
3.5 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
3.6 	2005 OMNIBUS RETIREMENT BILL

3.7 	ARTICLE 1
3.8 	CLARIFICATION/RECODIFICATION OF
3.9 	STATEWIDE SPECIALTY RETIREMENT PLANS

3.10 	Section 1. Minnesota Statutes 2004, section 3A.01,
3.11 	subdivision 1, is amended to read:
3.12 		Subdivision 1.Purposes. Each of the terms defined in
3.13 	this section,for the purposes of this chapter shall be
3.14 	given has the meanings meaning ascribed to them.

3.15 	Sec. 2. Minnesota Statutes 2004, section 3A.01, is amended
3.16 	by adding a subdivision to read:
3.17 		Subd. 1a.Actuarial equivalent. "Actuarial equivalent"
3.18 	means the condition of one allowance or benefit having an equal
3.19 	actuarial present value to another allowance or benefit,
3.20 	determined by the actuary retained under section 356.214 as of a
3.21 	given date at a specified age with each actuarial present value
3.22 	based on the mortality table applicable for the plan and
3.23 	approved under section 356.215, subdivision 18, and using the
3.24 	applicable preretirement or postretirement interest rate
3.25 	assumption specified in section 356.215, subdivision 8.

3.26 	Sec. 3. Minnesota Statutes 2004, section 3A.01, is amended
3.27 	by adding a subdivision to read:
3.28 		Subd. 1b.Average monthly salary. "Average monthly
3.29 	salary" means the average of the member's highest five
3.30 	successive years of salary that was received as a member of the
3.31 	legislature and upon which the member has made contributions
3.32 	under section 3A.03, subdivision 1, or for which the member of
3.33 	the legislature has made payments for past service under section
3.34 	3A.02, subdivision 2, or has made, before July 1, 1994, payments
3.35 	in lieu of contributions under Minnesota Statutes 1992, section
3.36 	3A.031.

3.37 	Sec. 4. Minnesota Statutes 2004, section 3A.01, is amended
4.1 	by adding a subdivision to read:
4.2 		Subd. 1c.Constitutional officer. "Constitutional
4.3 	officer" means a person who was duly elected, qualifies for, and
4.4 	serves as the governor, the lieutenant governor, the attorney
4.5 	general, the secretary of state, or the state auditor of the
4.6 	state of Minnesota.

4.7 	Sec. 5. Minnesota Statutes 2004, section 3A.01,
4.8 	subdivision 2, is amended to read:
4.9 		Subd. 2.Dependent child. (a) "Dependent child" means
4.10 	any natural or adopted child of a deceased member of the
4.11 	legislature or a former legislator who is under the age of 18,
4.12 	or who is under the age of 22 and is a full-time student, and
4.13 	who,in either case,is unmarried and was actually dependent for
4.14 	more than one-half of support upon such the legislator for a
4.15 	period of at least 90 days immediately prior to before the
4.16 	legislator's death. It 
4.17 	(b) The term also includes any child of the member of the
4.18 	legislature or former legislator who was conceived during the
4.19 	lifetime of, and who was born after the death of, the member or
4.20 	former legislator. This subdivision shall be retroactive as to
4.21 	any dependent child under the age of 22 years as of April 1,
4.22 	1975.

4.23 	Sec. 6. Minnesota Statutes 2004, section 3A.01,
4.24 	subdivision 6, is amended to read:
4.25 		Subd. 6.Director.  "Director" means the executive
4.26 	director of the Minnesota State Retirement System who was
4.27 	appointed under section 352.03, subdivision 5.

4.28 	Sec. 7. Minnesota Statutes 2004, section 3A.01, is amended
4.29 	by adding a subdivision to read:
4.30 		Subd. 6b.Former legislator. "Former legislator" means a
4.31 	legislator who has ceased to be a member of the legislature for
4.32 	any reason, including, but not limited to, the expiration of the
4.33 	term for which a member of the legislature was elected or the
4.34 	death of the member.

4.35 	Sec. 8. Minnesota Statutes 2004, section 3A.01, is amended
4.36 	by adding a subdivision to read:
5.1 		Subd. 6c.Member of the legislature. "Member of the
5.2 	legislature" means a person who was a member of the House of
5.3 	Representatives or of the Senate of the state of Minnesota who
5.4 	has subscribed to the oath of office after July 1, 1965, and who
5.5 	was first elected to a legislative office before July 1, 1997,
5.6 	and retained coverage by the plan under Laws 1997, chapter 233,
5.7 	article 2, section 15.

5.8 	Sec. 9. Minnesota Statutes 2004, section 3A.01,
5.9 	subdivision 8, is amended to read:
5.10 		Subd. 8.Normal retirement age.  "Normal retirement age"
5.11 	means the age of 60 years with regard to any member of the
5.12 	legislature whose service terminates prior to the beginning of
5.13 	the 1981 legislative session, and the age of 62 years with
5.14 	regard to any member of the legislature whose service terminates
5.15 	after the beginning of the 1981 session.

5.16 	Sec. 10. Minnesota Statutes 2004, section 3A.01, is
5.17 	amended by adding a subdivision to read:
5.18 		Subd. 9.Retirement. "Retirement" means the period of
5.19 	time after which a former legislator is entitled to a retirement
5.20 	allowance.

5.21 	Sec. 11. Minnesota Statutes 2004, section 3A.01, is
5.22 	amended by adding a subdivision to read:
5.23 		Subd. 10.Salary. (a) "Salary" means the regular
5.24 	compensation payable under law to a member of the legislature
5.25 	and paid to the person for service as a legislator.
5.26 	(b) The term includes the monthly compensation paid to the
5.27 	member of the legislature and the per diem payments paid during
5.28 	a regular or special session to the member of the legislature.
5.29 	(c) The term does not include per diem payments paid to a
5.30 	member of the legislature other than during the regular or
5.31 	special session; additional compensation attributable to a
5.32 	leadership position under section 3.099, subdivision 3; living
5.33 	expense payments under section 3.101; and special session living
5.34 	expense payments under section 3.103.

5.35 	Sec. 12. Minnesota Statutes 2004, section 3A.011, is
5.36 	amended to read:
6.1 	3A.011 ADMINISTRATION OF PLAN.
6.2 	The executive director and the board of directors of the 
6.3 	Minnesota State Retirement System shall administer the
6.4 	legislators retirement plan in accordance with this chapter and 
6.5 	chapter 356A.

6.6 	Sec. 13. Minnesota Statutes 2004, section 3A.02,
6.7 	subdivision 1, is amended to read:
6.8 		Subdivision 1.Qualifications.  (a) A former legislator
6.9 	is entitled, upon written application to the director, to
6.10 	receive a retirement allowance monthly, if the person:
6.11 	(1) has either served at least six full years, without
6.12 	regard to the application of section 3A.10, subdivision 2, or
6.13 	has served during all or part of four regular sessions as a
6.14 	member of the legislature, which service need not be continuous;
6.15 	(2) has attained the normal retirement age;
6.16 	(3) has retired as a member of the legislature; and
6.17 	(4) has made all contributions provided for in section
6.18 	3A.03, has made payments for past service under subdivision 2,
6.19 	or has made payments in lieu of contributions under Minnesota
6.20 	Statutes 1992, section 3A.031, prior to before July 1, 1994.
6.21 	(b) This paragraph applies to members of the legislature
6.22 	who terminate service as a legislator before July 1, 1997.  For
6.23 	service rendered before the beginning of the 1979 legislative
6.24 	session, but not to exceed eight years of service, the
6.25 	retirement allowance is an amount equal to five percent per year
6.26 	of service of that member's average monthly salary.  For service
6.27 	in excess of eight years rendered before the beginning of the
6.28 	1979 legislative session, and for service rendered after the
6.29 	beginning of the 1979 legislative session,Unless the former
6.30 	legislator has legislative service before January 1, 1979,the
6.31 	retirement allowance is an amount equal to 2-1/2 percent per
6.32 	year of service of that member's average monthly salary.
6.33 	(c) This paragraph applies to members of the legislature
6.34 	who terminate service as a legislator after June 30, 1997.  The
6.35 	retirement allowance is an amount equal to the applicable rate
6.36 	or rates under paragraph (b) per year of service of the member's
7.1 	average monthly salary and adjusted for that person on an
7.2 	actuarial equivalent basis to reflect the change in the
7.3 	postretirement interest rate actuarial assumption under section
7.4 	356.215, subdivision 8, from five percent to six percent.  The
7.5 	adjustment must be calculated by or, alternatively, the
7.6 	adjustment procedure must be specified by, the actuary retained
7.7 	by the Legislative Commission on Pensions and Retirement under
7.8 	section 356.214.  The purpose of this adjustment is to ensure
7.9 	that the total amount of benefits that the actuary predicts an
7.10 	individual member will receive over the member's lifetime under
7.11 	this paragraph will be the same as the total amount of benefits
7.12 	the actuary predicts the individual member would receive over
7.13 	the member's lifetime under the law in effect before enactment
7.14 	of this paragraph. If the former legislator has legislative
7.15 	service before January 1, 1979, the person's benefit must
7.16 	include the additional benefit amount in effect on January 1,
7.17 	1979, and adjusted as otherwise provided in this paragraph.
7.18 	(d) (c) The retirement allowance accrues beginning with the
7.19 	first day of the month of receipt of the application, but not
7.20 	before age 60, and for the remainder of the former legislator's
7.21 	life, if the former legislator is not serving as a member of the
7.22 	legislature or as a constitutional officer or commissioner as
7.23 	defined in section 352C.021, subdivisions 2 and 3 section 3A.01,
7.24 	subdivision 1c.  The annuity does not begin to accrue prior to 
7.25 	before the person's retirement as a legislator.  No annuity
7.26 	payment may be made retroactive for more than 180 days before
7.27 	the date that the annuity application is filed with the director.
7.28 	(e) (d) Any member who has served during all or part of
7.29 	four regular sessions is considered to have served eight years
7.30 	as a member of the legislature.
7.31 	(f) (e) The retirement allowance ceases with the last
7.32 	payment that accrued to the retired legislator during the
7.33 	retired legislator's lifetime, except that the surviving spouse,
7.34 	if any, is entitled to receive the retirement allowance of the
7.35 	retired legislator for the calendar month in which the retired
7.36 	legislator died.

8.1 	Sec. 14. Minnesota Statutes 2004, section 3A.02,
8.2 	subdivision 1b, is amended to read:
8.3 		Subd. 1b.Reduced retirement allowance.  (a) Upon
8.4 	separation from service after the beginning of the 1981
8.5 	legislative session, a former member of the legislature who has
8.6 	attained the age set by the board of directors of the Minnesota
8.7 	State Retirement System and who is otherwise qualified in
8.8 	accordance with under subdivision 1 is entitled,upon making
8.9 	written application on forms supplied a form prescribed by the
8.10 	director,to a reduced retirement allowance in .  The reduced
8.11 	retirement allowance is an amount equal to the retirement
8.12 	allowance specified in subdivision 1, paragraph (b), that is 
8.13 	reduced so that the reduced annuity allowance is the actuarial
8.14 	equivalent of the annuity allowance that would be payable if the
8.15 	former member of the legislature deferred receipt of the annuity 
8.16 	allowance and the annuity allowance amount were was augmented
8.17 	at an annual rate of three percent compounded annually from the
8.18 	date the annuity allowance begins to accrue until age 62.
8.19 	(b) The age set by the board of directors under paragraph
8.20 	(a) cannot be less an earlier age than the early retirement age
8.21 	under section 352.116, subdivision 1a.
8.22 	(c) If there is an actuarial cost to the plan of resetting
8.23 	the early retirement age under paragraph (a), the retired
8.24 	legislator is required to pay an additional amount to cover the
8.25 	full actuarial value.  The additional amount must be paid in a
8.26 	lump sum within 30 days of the certification of the amount by
8.27 	the executive director.
8.28 	(d) The executive director of the Minnesota State
8.29 	Retirement System shall report to the Legislative Commission on
8.30 	Pensions and Retirement on the utilization of this
8.31 	provision annually on or before September 1, 2000.

8.32 	Sec. 15. Minnesota Statutes 2004, section 3A.02,
8.33 	subdivision 3, is amended to read:
8.34 		Subd. 3.Appropriation.  The amounts required for payment
8.35 	of retirement allowances provided by this section are
8.36 	appropriated annually to the director from the participation of
9.1 	the legislators retirement plan in the Minnesota postretirement
9.2 	investment fund and shall .  The retirement allowance must be
9.3 	paid monthly to the recipients entitled thereto to those
9.4 	retirement allowances.

9.5 	Sec. 16. Minnesota Statutes 2004, section 3A.02,
9.6 	subdivision 4, is amended to read:
9.7 		Subd. 4.Deferred annuities augmentation.  (a) The
9.8 	deferred annuity retirement allowance of any former legislator
9.9 	must be augmented as provided herein.
9.10 	(b) The required reserves applicable to the
9.11 	deferred annuity retirement allowance, determined as of the date
9.12 	the benefit begins to accrue using an appropriate mortality
9.13 	table and an interest assumption of six percent, must be
9.14 	augmented from the first of the month following the termination
9.15 	of active service, or July 1, 1973, whichever is later, to the
9.16 	first day of the month in which the annuity allowance begins to
9.17 	accrue, at the following annually compounded rate of five
9.18 	percent per annum compounded annually until January 1, 1981, and
9.19 	thereafter at the rate of three percent per annum compounded
9.20 	annually until January 1 of the year in which the former
9.21 	legislator attains age 55.  From that date to the effective date
9.22 	of retirement, the rate is five percent compounded annually.or
9.23 	rates:
9.24 	rate period
9.25 	     (1) five percent until January 1, 1981 
9.26 	(2) three percent from January 1, 1981, or from the
9.27 	                          first day of the month following
9.28 	                          the termination of active service,
9.29 	                          whichever is later, until January 1
9.30 	                          of the year in which the former
9.31 	                          legislator attains age 55
9.33 	     (3) five percent from the period end date under
9.34 	                          clause (2) to the effective date
9.35 	                          of retirement.
9.36 	(b) The retirement allowance of, or the survivor benefit
10.1 	payable on behalf of, a former member of the legislature who
10.2 	terminated service before July 1, 1997, which is not first
10.3 	payable until after June 30, 1997, must be increased on an
10.4 	actuarial equivalent basis to reflect the change in the
10.5 	postretirement interest rate actuarial assumption under section
10.6 	356.215, subdivision 8, from five percent to six percent under a
10.7 	calculation procedure and tables adopted by the board of
10.8 	directors of the Minnesota State Retirement System and approved
10.9 	by the actuary retained by the Legislative Commission on
10.10 	Pensions and Retirement.

10.11 	Sec. 17. Minnesota Statutes 2004, section 3A.02,
10.12 	subdivision 5, is amended to read:
10.13 		Subd. 5.Optional annuities.  (a) The board of directors
10.14 	shall establish an optional retirement annuity in the form of a
10.15 	joint and survivor annuity and an optional retirement annuity in
10.16 	the form of a period certain and life thereafter.  Except as
10.17 	provided in paragraph (b), these optional annuity forms must be
10.18 	actuarially equivalent to the normal annuity allowance computed
10.19 	under this section, plus the actuarial value of any surviving
10.20 	spouse benefit otherwise potentially payable at the time of
10.21 	retirement under section 3A.04, subdivision 1.  An individual
10.22 	selecting an optional annuity under this subdivision waives and
10.23 	the person's spouse waive any rights to surviving spouse
10.24 	benefits under section 3A.04, subdivision 1.
10.25 	(b) If a retired legislator selects the joint and survivor
10.26 	annuity option, the retired legislator must receive a normal
10.27 	single-life annuity allowance if the designated optional annuity
10.28 	beneficiary dies before the retired legislator and no reduction
10.29 	may be made in the annuity to provide for restoration of the
10.30 	normal single-life annuity allowance in the event of the death
10.31 	of the designated optional annuity beneficiary.
10.32 	(c) The surviving spouse of a legislator who has attained
10.33 	at least age 60 and who dies while a member of the legislature
10.34 	may elect an optional joint and survivor annuity under paragraph
10.35 	(a), in lieu of surviving spouse benefits under section 3A.04,
10.36 	subdivision 1.

11.1 	Sec. 18. Minnesota Statutes 2004, section 3A.03,
11.2 	subdivision 1, is amended to read:
11.3 		Subdivision 1.Percentage. (a) Every member of the
11.4 	legislature shall contribute nine percent of total salary,.
11.5 	(b) The contribution must be made by payroll deduction,
11.6 	to and must be paid into the state treasury and deposited in the
11.7 	general fund. It shall be the duty of 
11.8 	(c) The director to must record the periodic contributions
11.9 	of each member of the legislature and must credit such each 
11.10 	contribution to the member's account.

11.11 	Sec. 19. Minnesota Statutes 2004, section 3A.03,
11.12 	subdivision 2, is amended to read:
11.13 		Subd. 2.Refund.  (a) A former member who has made
11.14 	contributions under subdivision 1 and who is no longer a member
11.15 	of the legislature is entitled to receive, upon written
11.16 	application to the executive director on a form prescribed by
11.17 	the executive director, a refund from the general fund of all
11.18 	contributions credited to the member's account with interest
11.19 	computed as provided in section 352.22, subdivision 2.
11.20 	(b) The refund of contributions as provided in paragraph (a)
11.21 	terminates all rights of a former member of the legislature and
11.22 	the survivors of the former member under this chapter.
11.23 	(c) If the former member of the legislature again becomes a
11.24 	member of the legislature after having taken a refund as
11.25 	provided in paragraph (a), the member must be considered is a
11.26 	new member of this plan the unclassified employees retirement
11.27 	program of the Minnesota State Retirement System.
11.28 	(d) However, the member may reinstate the rights and credit
11.29 	for service previously forfeited under this chapter if the
11.30 	member repays all refunds taken,plus interest at an annual rate
11.31 	of 8.5 percent compounded annually from the date on which the
11.32 	refund was taken to the date on which the refund is repaid.
11.33 	(d) (e) No person may be required to apply for or to accept
11.34 	a refund.

11.35 	Sec. 20. Minnesota Statutes 2004, section 3A.04,
11.36 	subdivision 1, is amended to read:
12.1 		Subdivision 1.Surviving spouse. (a) Upon the death of a
12.2 	member of the legislature while serving as such a member after
12.3 	June 30, 1973, or upon the death of a former member of the
12.4 	legislature with at least the number of six full years of
12.5 	service as required by section 3A.02, subdivision 1, clause
12.6 	(1) or service in all or part of four regular legislative
12.7 	sessions, the surviving spouse shall be paid is entitled to a
12.8 	survivor benefit in the amount of .
12.9 	(b) The surviving spouse benefit is one-half of the
12.10 	retirement allowance of the member of the legislature computed
12.11 	as though the member were at least normal retirement age on the
12.12 	date of death and based upon the member's allowable service
12.13 	or upon eight years,whichever is greater.  The augmentation
12.14 	provided in section 3A.02, subdivision 4, if applicable, shall 
12.15 	must be applied for the period up to, and including,the month
12.16 	of death.
12.17 	(c) Upon the death of a former legislator receiving a
12.18 	retirement allowance, the surviving spouse shall be is entitled
12.19 	to one-half of the amount of the retirement allowance being paid
12.20 	to the legislator. Such 
12.21 	(d) The surviving spouse benefit shall be paid during is
12.22 	payable for the lifetime of the surviving spouse.

12.23 	Sec. 21. Minnesota Statutes 2004, section 3A.04,
12.24 	subdivision 2, is amended to read:
12.25 		Subd. 2.Dependent children. (a) Upon the death of a
12.26 	member of the legislature while serving as a member, or upon the
12.27 	death of a former member of the legislature who has rendered at
12.28 	least the number of six full years of service as required by
12.29 	section 3A.02, subdivision 1, clause (1) or service in all or
12.30 	part of four regular legislative sessions and who was not
12.31 	receiving a retirement allowance, each dependent child of the
12.32 	member or former legislator shall be is entitled to receive a
12.33 	survivor benefit in the following amount:
12.34 	(1) for the first dependent child, a monthly allowance
12.35 	which equals benefit equal to 25 percent of the monthly
12.36 	retirement allowance of the member of the legislature or the 
13.1 	former legislator computed as though the member or the former
13.2 	legislator had attained at least the normal retirement age on
13.3 	the date of death and based upon the average monthly salary as
13.4 	of the date of death or as of the date of termination, whichever
13.5 	is applicable applies, and the member's allowable service or
13.6 	eight years,whichever is greater;
13.7 	(2) for each additional dependent child, a monthly
13.8 	allowance which equals benefit equal to 12-1/2 percent of the
13.9 	monthly retirement allowance of the member or the former
13.10 	legislator computed as provided in the case of the first child 
13.11 	clause (1); but and 
13.12 	(3) the total amount paid to the surviving spouse and to
13.13 	the dependent child or children shall may not exceed,in any
13.14 	one month,100 percent of the monthly retirement allowance of
13.15 	the member or of the former legislator computed as provided in
13.16 	the case of the first child clause (1).
13.17 	(b) The augmentation provided in section 3A.02, subdivision
13.18 	4, if applicable, shall be applied applies from the first day of
13.19 	the month next following the date of the termination of the
13.20 	person from service as a member of the legislature to the month
13.21 	of the death of the person.
13.22 	(c) Upon the death of a former legislator who was receiving
13.23 	a retirement allowance, the a surviving dependent child shall be 
13.24 	is entitled to the applicable percentage specified above in
13.25 	paragraph (a), clause (1) or (2), whichever applies,of the
13.26 	amount of the allowance which was paid to the former legislator
13.27 	for the month immediately prior to before the date of death of
13.28 	the former legislator.
13.29 	(d) The payments for dependent children shall must be made
13.30 	to the surviving spouse or to the guardian of the estate of the
13.31 	dependent children, if there is one.

13.32 	Sec. 22. Minnesota Statutes 2004, section 3A.04,
13.33 	subdivision 3, is amended to read:
13.34 		Subd. 3.Payment.  The surviving spouse's spouse and
13.35 	dependent children's child or children survivor benefits payable
13.36 	under this section shall be paid are payable by the director
14.1 	monthly in the same manner as retirement allowances are
14.2 	authorized to be paid by this chapter.

14.3 	Sec. 23. Minnesota Statutes 2004, section 3A.04,
14.4 	subdivision 4, is amended to read:
14.5 		Subd. 4.Death refunds. (a) Upon the death of a member
14.6 	of the legislature or of a former legislator who was not
14.7 	receiving a retirement allowance,without leaving either a
14.8 	surviving spouse or a dependent child or dependent children, the
14.9 	last designated beneficiary named on a form that was filed with
14.10 	the director before the death of the legislator, or if no
14.11 	designation is filed, the estate of the member or the former
14.12 	legislator, upon application, shall be is entitled to a refund.
14.13 	(b) The refund is the amount of contributions credited to
14.14 	the person's account plus interest as provided in section 3A.03,
14.15 	subdivision 2, clause (2) paragraph (a).

14.16 	Sec. 24. Minnesota Statutes 2004, section 3A.04, is
14.17 	amended by adding a subdivision to read:
14.18 		Subd. 5.Appropriation. The survivor benefits and the
14.19 	death refunds authorized by this section are appropriated to the
14.20 	director from the general fund when they are due and payable.

14.21 	Sec. 25. Minnesota Statutes 2004, section 3A.05, is
14.22 	amended to read:
14.23 	3A.05 APPLICATION FOR SURVIVOR BENEFIT.
14.24 	(a) Applications for survivor benefits pursuant to under 
14.25 	section 3A.04shall must be filed with the director by the
14.26 	surviving spouse and dependent child or children entitled to
14.27 	benefits pursuant to under section 3A.04, or by the guardian of
14.28 	the estate, if there is one, of the dependent child or children.
14.29 	(b) Survivor benefits shall accrue as of the first day of
14.30 	the month following the death of the member of the legislature
14.31 	or former legislator and payments shall commence as of the first
14.32 	of the month next following the filing of the application,
14.33 	and shall be are retroactive to the date the benefit accrues;
14.34 	provided, however, that no payment shall be retroactive for more
14.35 	than or the first of the month occurring 12 months prior
14.36 	to before the month in which the application is filed with the
15.1 	director, whichever is earlier.

15.2 	Sec. 26. Minnesota Statutes 2004, section 3A.07, is
15.3 	amended to read:
15.4 	3A.07 APPLICATION.
15.5 	(a) Except as provided in paragraph (b), this chapter
15.6 	applies to members of the legislature in service after July 1,
15.7 	1965, who otherwise meet the requirements of this chapter.
15.8 	(b) Members of the legislature who were elected for the
15.9 	first time after June 30, 1997, or members of the legislature
15.10 	who were elected before July 1, 1997, and who, after July 1,
15.11 	1998, elect not to be members of the plan established by this
15.12 	chapter are covered by the unclassified employees retirement
15.13 	program governed by chapter 352D.
15.14 	(c) The post-July 1, 1998, coverage election under
15.15 	paragraph (b) is irrevocable and must be made on a form
15.16 	prescribed by the director. The second chance referendum
15.17 	election under Laws 2002, chapter 392, article 15, also is
15.18 	irrevocable.

15.19 	Sec. 27. Minnesota Statutes 2004, section 3A.10,
15.20 	subdivision 1, is amended to read:
15.21 		Subdivision 1.Service credit for legislative term. (a) 
15.22 	In the case of a member of the house of representatives,one
15.23 	full term of office shall must be considered two full years of 
15.24 	service,notwithstanding the fact that the oath of office may be 
15.25 	was taken on different days each biennium.
15.26 	(b) In the case of a member of the senate, one full term of
15.27 	office shall must be considered four full years of service,
15.28 	notwithstanding the fact that the oath of office may be was 
15.29 	taken on different days at the start of each term.
15.30 	(c) For purposes of this chapter, a legislative term shall 
15.31 	must be deemed to commence on January 1st 1 and to end on
15.32 	December 31st 31.

15.33 	Sec. 28. Minnesota Statutes 2004, section 3A.12, is
15.34 	amended to read:
15.35 	3A.12 COVERAGE BY MORE THAN ONE RETIREMENT SYSTEM OR
15.36 	ASSOCIATION.
16.1 		Subdivision 1.Entitlement to annuity. (a) Any
16.2 	legislator who has been an employee covered by a member of a
16.3 	retirement plan listed in paragraph (b) is entitled, when
16.4 	otherwise qualified, to a retirement allowance or annuity from
16.5 	each plan if the total allowable service in all plans or in any
16.6 	two of these plans totals ten or more years.
16.7 	(b) This section applies to any retirement plan or program
16.8 	administered by the Minnesota State Retirement System, or a
16.9 	member of any retirement plan administered by the Public
16.10 	Employees Retirement Association,including the Public Employees
16.11 	Retirement Association police and fire fund, or the Teachers
16.12 	Retirement Association, or the Minneapolis employees
16.13 	retirement Fund plan, or the State Patrol retirement fund plan,
16.14 	or any other public employee retirement system in the state of
16.15 	Minnesota having a like provision but excluding all .
16.16 	(c) This section does not apply to other funds retirement
16.17 	plans providing benefits for police or firefighters, shall be
16.18 	entitled when qualified to an annuity from each fund if the
16.19 	total allowable service for which the legislator has credit in
16.20 	all funds or in any two of these funds totals ten or more years,
16.21 	provided .
16.22 	(d) No portion of the allowable service upon which the
16.23 	retirement annuity from one fund plan is based is again used in
16.24 	the computation for benefits from another fund plan.  The
16.25 	annuity from each fund shall plan must be determined by the
16.26 	appropriate provisions of the law,except that the requirement
16.27 	that a person must have at least ten a minimum number of years
16.28 	of allowable service in the respective system or
16.29 	association shall does not apply for the purposes of this
16.30 	section provided if the combined service in two or more of these
16.31 	funds plans equals ten or more years.  The augmentation of
16.32 	deferred annuities provided in section 3A.02, subdivision
16.33 	4, shall apply applies to the annuities accruing hereunder under
16.34 	this section.
16.35 		Subd. 2.Refund repayment. Any A former legislator who
16.36 	has received a refund as provided in section 3A.03, subdivision
17.1 	2, who is a currently contributing member of a retirement fund 
17.2 	plan specified in subdivision 1, paragraph (b), may repay the
17.3 	refund as provided in section 3A.03, subdivision 2. Any A 
17.4 	member of the legislature who has received a refund from any of
17.5 	the funds retirement plans specified in subdivision 1,may repay
17.6 	the refund to the respective fund plan under such terms and
17.7 	conditions consistent with the law governing such fund the
17.8 	retirement plan if the law governing such fund the plan permits
17.9 	the repayment of refunds.  If the total amount to be repaid,
17.10 	including principal and interest exceeds $2,000, repayment may
17.11 	be made in three equal installments over a period of 18 months,
17.12 	with the interest accrued during the period of the repayment
17.13 	added to the final installment.

17.14 	Sec. 29. Minnesota Statutes 2004, section 3A.13, is
17.15 	amended to read:
17.16 	3A.13 EXEMPTION FROM PROCESS AND TAXATION; HEALTH PREMIUM
17.17 	DEDUCTION.
17.18 	(a) The provisions of section 352.15shall apply to the
17.19 	legislators retirement plan, chapter 3A.
17.20 	(b) The executive director of the Minnesota State
17.21 	Retirement System must, at the request of a retired legislator
17.22 	who is enrolled in a health insurance plan covering state
17.23 	employees, deduct the person's health insurance premiums from
17.24 	the person's annuity and transfer the amount of the premium to a
17.25 	health insurance carrier covering state employees.

17.26 	Sec. 30. [352C.001] RETIREMENT PLAN; APPLICATION.
17.27 	(a) The retirement plan applicable to a former
17.28 	constitutional officer who was first elected to a constitutional
17.29 	office after July 1, 1967, and before July 1, 1997, is the
17.30 	applicable portions of this chapter and chapter 356 in effect on
17.31 	the date on which the person terminated active service as a
17.32 	constitutional officer.
17.33 	(b) Nothing in this section or section 31 or 77,
17.34 	subdivision 2, is intended to reduce the benefits of former
17.35 	constitutional officers or to adversely modify their eligibility
17.36 	for benefits in effect as of the day before the effective date
18.1 	of this section.

18.2 	Sec. 31. Minnesota Statutes 2004, section 352C.091,
18.3 	subdivision 1, is amended to read:
18.4 		Subdivision 1.Administrative agency and standards. This
18.5 	chapter (a) The elected officers retirement plan must be
18.6 	administered by the board of directors and the executive
18.7 	director of the Minnesota State Retirement System.
18.8 	(b) The elected state officers retirement plan must be
18.9 	administered consistent with this chapter the applicable
18.10 	statutory provisions governing the plan and chapters 356 and
18.11 	356A.

18.12 	Sec. 32. Minnesota Statutes 2004, section 490.121,
18.13 	subdivision 1, is amended to read:
18.14 		Subdivision 1.Scope.  For purposes of sections 490.121
18.15 	to 490.132, unless the context clearly indicates otherwise, each
18.16 	of the terms defined in this section have has the meanings 
18.17 	meaning given them unless the context clearly indicates
18.18 	otherwise it.

18.19 	Sec. 33. Minnesota Statutes 2004, section 490.121, is
18.20 	amended by adding a subdivision to read:
18.21 		Subd. 2a.Actuarial equivalent. "Actuarial equivalent"
18.22 	means the condition of one annuity or benefit having an equal
18.23 	actuarial present value as another annuity or benefit,
18.24 	determined as of a given date with each actuarial present value
18.25 	based on the appropriate mortality table adopted by the board of
18.26 	directors of the Minnesota State Retirement System based on the
18.27 	experience of the fund as recommended by the actuary retained
18.28 	under section 356.214 and approved under section 356.215,
18.29 	subdivision 18, and using the applicable preretirement or
18.30 	postretirement interest rate assumption specified in section
18.31 	356.215, subdivision 8.

18.32 	Sec. 34. Minnesota Statutes 2004, section 490.121,
18.33 	subdivision 4, is amended to read:
18.34 		Subd. 4.Allowable service. (a) "Allowable service"
18.35 	means any calendar month, subject to the service credit limit in
18.36 	subdivision 22, served as a judge at any time, or during which
19.1 	the judge received compensation for that service from the state,
19.2 	municipality, or county, whichever applies, and for which the
19.3 	judge made any required member contribution.  It also includes
19.4 	any month served as a referee in probate for all referees in
19.5 	probate who were in office prior to before January 1, 1974.
19.6 	(b) "Allowable service" does not mean service as a retired
19.7 	judge.

19.8 	Sec. 35. Minnesota Statutes 2004, section 490.121,
19.9 	subdivision 6, is amended to read:
19.10 		Subd. 6.Annuity.  "Annuity" means the payments that are 
19.11 	made each year to an annuitant from the judges' retirement fund,
19.12 	pursuant to the provisions of under sections 490.121 to 490.132.

19.13 	Sec. 36. Minnesota Statutes 2004, section 490.121,
19.14 	subdivision 7, is amended to read:
19.15 		Subd. 7.Annuitant.  "Annuitant" means a former judge, a 
19.16 	surviving spouse,or a dependent child who is entitled to and is
19.17 	receiving an annuity under the provisions of sections 490.121 to
19.18 	490.132.

19.19 	Sec. 37. Minnesota Statutes 2004, section 490.121, is
19.20 	amended by adding a subdivision to read:
19.21 		Subd. 7a.Approved actuary. "Approved actuary" means an
19.22 	actuary as defined in section 356.215, subdivision 1, paragraph
19.23 	(c).

19.24 	Sec. 38. Minnesota Statutes 2004, section 490.121, is
19.25 	amended by adding a subdivision to read:
19.26 		Subd. 7b.Court. "Court" means any court of this state
19.27 	that is established by the Minnesota Constitution.

19.28 	Sec. 39. Minnesota Statutes 2004, section 490.121, is
19.29 	amended by adding a subdivision to read:
19.30 		Subd. 7c.Dependent surviving child. "Dependent
19.31 	surviving child" means any natural or adopted child of a
19.32 	deceased judge who has not reached the age of 18 years, or
19.33 	having reached the age of 18, is under age 22 and who is a
19.34 	full-time student throughout the normal school year, is
19.35 	unmarried, and is actually dependent for more than one-half of
19.36 	the child's support upon the judge for a period of at least 90
20.1 	days before the judge's death.  It also includes any natural
20.2 	child of the judge who was born after the death of the judge.

20.3 	Sec. 40. Minnesota Statutes 2004, section 490.121,
20.4 	subdivision 13, is amended to read:
20.5 		Subd. 13.Disability.  "Disability" means the permanent
20.6 	inability of a judge to continue to perform the functions of
20.7 	judge by reason of a physical or mental impairment resulting
20.8 	from a sickness or an injury.

20.9 	Sec. 41. Minnesota Statutes 2004, section 490.121,
20.10 	subdivision 14, is amended to read:
20.11 		Subd. 14.Disability retirement date.  "Disability
20.12 	retirement date" means the last day of the first month after the
20.13 	date on which the governor determines, upon receipt of the 
20.14 	voluntary application by the judge or otherwise, that a judge
20.15 	suffers from a disability.

20.16 	Sec. 42. Minnesota Statutes 2004, section 490.121,
20.17 	subdivision 15, is amended to read:
20.18 		Subd. 15.Disability retirement annuity.  "Disability
20.19 	retirement annuity" means an annuity to which a judge is
20.20 	entitled under section 490.124, subdivisions 1 and 4,after the 
20.21 	retirement for reason of the judge because of a disability.

20.22 	Sec. 43. Minnesota Statutes 2004, section 490.121, is
20.23 	amended by adding a subdivision to read:
20.24 		Subd. 15a.Early retirement date. "Early retirement date"
20.25 	means the last day of the month after a judge attains the age of
20.26 	60 but before the judge reaches the normal retirement date.

20.27 	Sec. 44. Minnesota Statutes 2004, section 490.121, is
20.28 	amended by adding a subdivision to read:
20.29 		Subd. 15b.Early retirement annuity. "Early retirement
20.30 	annuity" means an annuity to which a judge is entitled under
20.31 	section 490.124, subdivisions 1 and 3, upon retirement by the
20.32 	judge at an early retirement date.

20.33 	Sec. 45. Minnesota Statutes 2004, section 490.121,
20.34 	subdivision 21, is amended to read:
20.35 		Subd. 21.Final average compensation.  "Final average
20.36 	compensation" means the total amount of the salary payable paid 
21.1 	to a judge in the highest five years out of the last ten years
21.2 	prior to before the event of maturity of benefits termination of
21.3 	judicial service, divided by five; provided, however, that if
21.4 	the number of years of service by the judge equals or exceeds
21.5 	ten.  If the number of years of service by the judge is less
21.6 	than ten, but more than five, the highest five shall years of
21.7 	salary must be counted, and .If the number of years of service
21.8 	by the judge is less than five, the aggregate salary in such for
21.9 	the period shall of service must be divided by the number of
21.10 	months in such the period and multiplied by 12.

21.11 	Sec. 46. Minnesota Statutes 2004, section 490.121, is
21.12 	amended by adding a subdivision to read:
21.13 		Subd. 21a.Judge. "Judge" means a judge or a justice of
21.14 	any court as defined under subdivision 7b.

21.15 	Sec. 47. Minnesota Statutes 2004, section 490.121, is
21.16 	amended by adding a subdivision to read:
21.17 		Subd. 21b.Judges' retirement fund; retirement fund;
21.18 	fund. "Judges' retirement fund," "retirement fund," or "fund"
21.19 	means the fund created by section 490.123.

21.20 	Sec. 48. Minnesota Statutes 2004, section 490.121, is
21.21 	amended by adding a subdivision to read:
21.22 		Subd. 21c.Mandatory retirement date. "Mandatory
21.23 	retirement date" means the last day of the month in which a
21.24 	judge has attained 70 years of age.

21.25 	Sec. 49. Minnesota Statutes 2004, section 490.121, is
21.26 	amended by adding a subdivision to read:
21.27 		Subd. 21d.Normal retirement annuity. Except as
21.28 	otherwise provided in sections 490.121 to 490.132, "normal
21.29 	retirement annuity" means an annuity to which a judge is
21.30 	entitled under section 490.124, subdivision 1, upon retirement
21.31 	on or after the normal retirement date of the judge.

21.32 	Sec. 50. Minnesota Statutes 2004, section 490.121, is
21.33 	amended by adding a subdivision to read:
21.34 		Subd. 21e.Normal retirement date. "Normal retirement
21.35 	date" means the last day of the month in which a judge attains
21.36 	the age of 65.

22.1 	Sec. 51. Minnesota Statutes 2004, section 490.121,
22.2 	subdivision 22, is amended to read:
22.3 		Subd. 22.Service credit limit.  "Service credit limit"
22.4 	means the greater of:  (1) 24 years of allowable service
22.5 	under this chapter 490; or (2) for judges with allowable service
22.6 	rendered prior to before July 1, 1980, the number of years of
22.7 	allowable service under chapter 490, which, when multiplied by
22.8 	the percentage listed in section 356.315, subdivision 7 or 8,
22.9 	whichever is applicable to each year of service, equals 76.8.

22.10 	Sec. 52. Minnesota Statutes 2004, section 490.121, is
22.11 	amended by adding a subdivision to read:
22.12 		Subd. 23.Surviving spouse. "Surviving spouse" means the
22.13 	surviving legally married spouse of a deceased judge.

22.14 	Sec. 53. Minnesota Statutes 2004, section 490.121, is
22.15 	amended by adding a subdivision to read:
22.16 		Subd. 24.Survivor's annuity. "Survivor's annuity" means
22.17 	an annuity to which a surviving spouse or dependent child is
22.18 	entitled under section 490.124, subdivision 9.

22.19 	Sec. 54. Minnesota Statutes 2004, section 490.122, is
22.20 	amended to read:
22.21 	490.122 ADMINISTRATION OF JUDGES' RETIREMENT.
22.22 		Subdivision 1.Administration. The policy-making,
22.23 	management, and administrative functions governing the operation
22.24 	of the judges' retirement fund and the administration
22.25 	of sections 490.121 to 490.132this chapter are vested in the
22.26 	board of directors and executive director of the Minnesota State
22.27 	Retirement System with such .  In administering the plan and
22.28 	fund, the board and the director have the same duties,
22.29 	authority, and responsibility as are provided in chapter 352.
22.30 		Subd. 2.Inapplicability of certain laws. Except as
22.31 	otherwise specified, no provision of chapter 352 applies to the
22.32 	judges' retirement fund or any judge.
22.33 		Subd. 3.Fiduciary responsibility. Fiduciary
22.34 	activities of relating to the uniform judges' retirement and
22.35 	Survivors' Annuities for Judges plan must be undertaken in a
22.36 	manner consistent with chapter 356A.

23.1 	Sec. 55. Minnesota Statutes 2004, section 490.123,
23.2 	subdivision 1, is amended to read:
23.3 		Subdivision 1.Fund creation; revenue and authorized
23.4 	disbursements. (a) There is created a special fund to be known
23.5 	as the "judges' retirement fund."
23.6 	(b) The judges' retirement fund must be credited with all
23.7 	contributions,;all interest, dividends, and other investment
23.8 	proceeds;and all other income authorized by this chapter or
23.9 	other applicable law.
23.10 	(c) From this fund there are appropriated the payments
23.11 	authorized by sections 490.121 to 490.132, in the amounts and at
23.12 	the times provided, including the necessary and reasonable
23.13 	expenses of the Minnesota State Retirement System in
23.14 	administering the fund and the transfers to the Minnesota
23.15 	postretirement investment fund.

23.16 	Sec. 56. Minnesota Statutes 2004, section 490.123,
23.17 	subdivision 1a, is amended to read:
23.18 		Subd. 1a.Member contribution rates.  (a) A judge who is
23.19 	covered by the federal Old Age, Survivors, Disability, and
23.20 	Health Insurance Program and whose service does not exceed the
23.21 	service credit limit in section 490.121, subdivision 22, shall
23.22 	contribute to the fund from each salary payment a sum equal to
23.23 	8.00 percent of salary.
23.24 	(b) A judge not so covered whose service does not exceed
23.25 	the service credit limit in section 490.121, subdivision 22,
23.26 	shall contribute to the fund from each salary payment a sum
23.27 	equal to 8.15 percent of salary.
23.28 	(c) The contribution under this subdivision is payable by
23.29 	salary deduction. The deduction must be made by the state court
23.30 	administrator under section 352.04, subdivisions 4, 5, and 8.

23.31 	Sec. 57. Minnesota Statutes 2004, section 490.123,
23.32 	subdivision 1b, is amended to read:
23.33 		Subd. 1b.Employer contribution rate. (a) The employer
23.34 	contribution rate to the fund on behalf of a judge is 20.5
23.35 	percent of salary and .  The employer obligation continues after
23.36 	a judge exceeds the service credit limit in section 490.121,
24.1 	subdivision 22.
24.2 	(b) The employer contribution must be paid by the state
24.3 	court administrator and .  The employer contribution is payable
24.4 	at the same time as member contributions are made under
24.5 	subdivision 1a or as employee contributions are made to the
24.6 	unclassified plan in program governed by chapter 352D for judges
24.7 	whose service exceeds the limit in section 490.121, subdivision
24.8 	22, are remitted.

24.9 	Sec. 58. Minnesota Statutes 2004, section 490.123,
24.10 	subdivision 1c, is amended to read:
24.11 		Subd. 1c.Additional employer contribution. In the event
24.12 	that If the employer contribution under subdivision 1b and the
24.13 	assets of the judges retirement fund are insufficient to meet
24.14 	reserve transfers to the Minnesota postretirement investment
24.15 	fund or payments of survivor benefits before July 1, 1993 in a
24.16 	month, the necessary amount is appropriated from the general
24.17 	fund to the executive director of the Minnesota State Retirement
24.18 	System, upon the certification of the required amount by the
24.19 	executive director to the commissioner of finance.

24.20 	Sec. 59. Minnesota Statutes 2004, section 490.123,
24.21 	subdivision 2, is amended to read:
24.22 		Subd. 2.Commissioner of finance.  The commissioner of
24.23 	finance shall be is the ex officio treasurer of the judges'
24.24 	retirement fund and the .  The commissioner's general bond to the
24.25 	state shall must be so conditioned as to cover all liability for
24.26 	acting as the treasurer of this the fund.  All moneys money 
24.27 	received by the commissioner pursuant to under this section
24.28 	shall must be set aside in the state treasury to the credit of
24.29 	the judges' retirement fund. The commissioner shall transmit
24.30 	monthly to the executive director described in section 352.03,
24.31 	subdivision 5, a detailed statement of all amounts so received
24.32 	and credited to the fund.  The commissioner shall pay out the
24.33 	fund only upon vouchers signed by said executive director;
24.34 	provided that vouchers for investment may be signed by the
24.35 	secretary of the State Board of Investment.

24.36 	Sec. 60. Minnesota Statutes 2004, section 490.123,
25.1 	subdivision 3, is amended to read:
25.2 		Subd. 3.Investment. (a) The executive director referred
25.3 	to in subdivision 2 of the Minnesota State Retirement System 
25.4 	shall, from time to time, certify to the State Board of
25.5 	Investment such portions of the judges' retirement fund as in
25.6 	the director's judgment may not be required for immediate use.
25.7 	(b) Assets from the judges' retirement fund shall must be
25.8 	transferred to the Minnesota postretirement investment fund for
25.9 	retirement and disability benefits as provided in sections
25.10 	11A.18 and 352.119.
25.11 	(c) The State Board of Investment shall thereupon invest
25.12 	and reinvest sums so transferred, or certified, in such
25.13 	securities as are duly authorized legal investments for such
25.14 	purposes under section 11A.24in compliance with sections
25.15 	356A.04 and 356A.06.

25.16 	Sec. 61. Minnesota Statutes 2004, section 490.124,
25.17 	subdivision 1, is amended to read:
25.18 		Subdivision 1.Basic retirement annuity. (a) Except as
25.19 	qualified hereinafter from and after the mandatory retirement
25.20 	date, the normal retirement date, the early retirement date, or
25.21 	one year from the disability retirement date, as the case may
25.22 	be, a retiring judge is eligible to receive a retirement annuity
25.23 	shall be payable to a retiring judge from the judges' retirement
25.24 	fund in .
25.25 	(b) The retirement annuity is an amount equal to:  (1) the
25.26 	percent specified in section 356.315, subdivision 7, multiplied
25.27 	by the judge's final average compensation with that result then 
25.28 	multiplied by the number of years and fractions of years of
25.29 	allowable service rendered prior to before July 1, 1980; plus
25.30 	(2) the percent specified in section 356.315, subdivision 8,
25.31 	multiplied by the judge's final average compensation with that
25.32 	result then multiplied by the number of years and fractions of
25.33 	years of allowable service rendered after June 30, 1980.
25.34 	(c) Service that exceeds the service credit limit in
25.35 	section 490.121, subdivision 22, must be excluded in calculating
25.36 	the retirement annuity, but the compensation earned by the judge 
26.1 	during this period of judicial service must be used in
26.2 	determining a judge's final average compensation and calculating
26.3 	the retirement annuity.

26.4 	Sec. 62. Minnesota Statutes 2004, section 490.124,
26.5 	subdivision 2, is amended to read:
26.6 		Subd. 2.Minimum service requirement; extension of term.
 26.7 	No (a) Unless section 356.30 applies, a judge shall be is not 
26.8 	eligible for an annuity at the normal retirement date or the 
26.9 	early retirement date if the judge has less than five years of
26.10 	allowable service.
26.11 	(b) A judge who shall retire retires on or, as permitted
26.12 	under sections 490.121 to 490.132, after the judge's mandatory
26.13 	retirement date, shall be is entitled to a proportionate annuity
26.14 	based upon the allowable service of the judge at the date of
26.15 	retirement.
26.16 	A judge who was in office on December 31, 1973, and
26.17 	thereafter and who, by the date on which the current term
26.18 	expires, would not be eligible to retire with full benefits
26.19 	under statutes in effect on December 31, 1973, may apply to the
26.20 	governor for an extension to serve up to three additional years,
26.21 	stating the intention of the judge to retire upon attaining
26.22 	eligibility to receive a retirement allowance.  Notwithstanding
26.23 	section 490.125, the governor shall forthwith make a written
26.24 	order accepting the retirement application, and extending the
26.25 	term of office of the judge for the period of time, not to
26.26 	exceed three years, as may be necessary to make the judge
26.27 	eligible for retirement, solely for purposes of computing
26.28 	benefits hereunder.

26.29 	Sec. 63. Minnesota Statutes 2004, section 490.124,
26.30 	subdivision 3, is amended to read:
26.31 		Subd. 3.Early reduced retirement.  The retirement
26.32 	annuity provided by under subdivision 1 of any judge electing 
26.33 	who elects to retire at an early retirement date shall must be
26.34 	reduced by one-half of one percent per month from the retirement
26.35 	date to the normal retirement date.

26.36 	Sec. 64. Minnesota Statutes 2004, section 490.124,
27.1 	subdivision 4, is amended to read:
27.2 		Subd. 4.Disability retirement. (a) When the governor
27.3 	determines that a judge is disabled under section 490.121,
27.4 	subdivision 13, notice of the governor's determination must be
27.5 	sent to the judge, the chief justice of the Supreme Court, the
27.6 	state court administrator, and the executive director of the
27.7 	Minnesota State Retirement System.
27.8 	(b) From and after disability retirement date, a disabled
27.9 	judge shall be is entitled to continuation of the judge's full
27.10 	salary payable by the judge's employer, as if the judge's office
27.11 	were not vacated by retirement, for a period of up to one full
27.12 	year, but in no event beyond the judge's mandatory retirement
27.13 	date.  During this year the judge will is entitled to earn
27.14 	additional service credit in the judges' retirement plan.  The
27.15 	salary earned will be payable to a disabled judge is subject to
27.16 	retirement deductions and will must be included in computing
27.17 	final average compensation of the judge. Thereafter 
27.18 	(c) At the conclusion of the year of continued salary
27.19 	following a disability or upon the judge's mandatory retirement
27.20 	date, whichever is earlier, the disabled judge is entitled to a
27.21 	disability retirement annuity computed as provided in
27.22 	subdivision 1 shall be paid, provided that .  If the computed
27.23 	retirement annuity is a smaller amount,the judge shall is
27.24 	entitled to receive a minimum annuity of 25 percent of the
27.25 	judge's final average compensation.

27.26 	Sec. 65. Minnesota Statutes 2004, section 490.124,
27.27 	subdivision 5, is amended to read:
27.28 		Subd. 5.Deferred benefits.  (a) Any A benefit to which a
27.29 	judge is entitled under this section may be deferred until the 
27.30 	early or normal retirement date or later, notwithstanding the 
27.31 	termination of such the judge's service prior thereto.
27.32 	(b) The retirement annuity of, or the survivor benefit
27.33 	payable on behalf of, a former judge, who terminated service
27.34 	before July 1, 1997, which is not first payable until after June
27.35 	30, 1997, must be increased on an actuarial equivalent basis to
27.36 	reflect the change in the postretirement interest rate actuarial
28.1 	assumption under section 356.215, subdivision 8, from five
28.2 	percent to six percent under a calculation procedure and tables
28.3 	adopted by the board of directors of the Minnesota State
28.4 	Retirement System and approved by the actuary retained by the
28.5 	Legislative Commission on Pensions and Retirement under section
28.6 	356.214.

28.7 	Sec. 66. Minnesota Statutes 2004, section 490.124,
28.8 	subdivision 8, is amended to read:
28.9 		Subd. 8.Exclusive normal retirement benefits. Any (a)
28.10 	Except as provided in paragraph (b), a judge who retires after
28.11 	December 31, 1973, shall be is entitled to a retirement pension,
28.12 	retirement compensation or other retirement payment under
28.13 	statutes applicable solely to judges pursuant to under this
28.14 	section only, except that any such .
28.15 	(b) A judge who was in office prior to before January 1,
28.16 	1974, who retires at or after normal retirement age may then
28.17 	elect to receive during the judge's lifetime a normal retirement
28.18 	annuity computed on the basis of retirement compensation
28.19 	provided for such judge under statutes in effect on December 31,
28.20 	1973, in lieu of the amount of normal retirement annuity
28.21 	otherwise computed under sections 490.121 to 490.132.
28.22 	For purposes of this subdivision, the Conciliation Court of
28.23 	the city of Duluth shall be deemed to have been a court of
28.24 	record by the statutes in effect on December 31, 1973.

28.25 	Sec. 67. Minnesota Statutes 2004, section 490.124,
28.26 	subdivision 9, is amended to read:
28.27 		Subd. 9.Survivors' annuity. (a) Upon the death of a
28.28 	judge prior to before retirement, or upon the death of a person
28.29 	who has qualified for an annuity under this section but who
28.30 	ceases to be a judge prior to before retirement and has who not
28.31 	received a refund of contributions pursuant to under subdivision
28.32 	12, a surviving spouse is entitled to,or, if there be no
28.33 	surviving spouse, dependent children, shall are entitled to 
28.34 	receive an annuity, payable monthly, equal in total to 60
28.35 	percent of the normal retirement annuity which would have been
28.36 	payable to the judge or former judge had the date of death been
29.1 	the normal retirement date, provided that the .
29.2 	(b) The annuity payable to a surviving spouse or to 
29.3 	dependent children shall receive an annuity is an amount of not
29.4 	less than 25 percent of the judge's or the former judge's final
29.5 	average compensation.
29.6 	If a judge, whose surviving spouse was not entitled to
29.7 	survivors benefits provided solely for judges under statutes in
29.8 	effect prior to January 1, 1974, shall have died prior to
29.9 	retirement on or after May 23, 1973 and before January 1, 1974,
29.10 	a surviving spouse and dependent children, if any, shall be
29.11 	entitled to survivors benefits as provided hereunder as if such
29.12 	judge had died on January 1, 1974.

29.13 	Sec. 68. Minnesota Statutes 2004, section 490.124,
29.14 	subdivision 10, is amended to read:
29.15 		Subd. 10.Prior survivors' benefits; limitation. (a) 
29.16 	Benefits provided pursuant to under section 490.102, subdivision
29.17 	6, or 490.1091, for a surviving spouse of a retired judge,
29.18 	payable after the death of the judge, shall be are limited to:
29.19 	(a) spouses of judges who have retired prior to before 
29.20 	January 1, 1974; and .
29.21 	(b) spouses of judges in office on December 31, 1973 and
29.22 	thereafter who elect to continue contributions pursuant to
29.23 	section 490.102, subdivision 6 or 490.109.  The contributions
29.24 	shall be in addition to contributions pursuant to section
29.25 	490.123, and upon retirement the judge may not elect to receive
29.26 	any optional annuity pursuant to subdivision 11 unless the judge
29.27 	and the spouse shall waive any benefits pursuant to section
29.28 	490.102, subdivision 6 or 490.1091.
29.29 	No other judge in office on or after January 1, 1974, shall
29.30 	be is required to contribute pursuant to under section 490.102,
29.31 	subdivision 6,or 490.109.

29.32 	Sec. 69. Minnesota Statutes 2004, section 490.124,
29.33 	subdivision 11, is amended to read:
29.34 		Subd. 11.limitation on survivor benefits;optional
29.35 	annuities. (a) No survivor or death benefits may be paid in
29.36 	connection with the death of a judge who retires after December
30.1 	31, 1973, except as otherwise provided in sections 490.121 to
30.2 	490.132.
30.3 	(b) Except as provided in subdivision 10, a judge may elect
30.4 	to receive, instead of the normal retirement annuity, an
30.5 	optional retirement annuity in the form of either (1) an annuity
30.6 	payable for a period certain and for life after that period, (2) 
30.7 	a joint and survivor annuity without reinstatement in the event
30.8 	of if the designated beneficiary predeceasing predeceases the
30.9 	retired judge, or (3) a joint and survivor annuity with
30.10 	reinstatement in the event of if the designated beneficiary
30.11 	predeceasing predeceases the retired judge.
30.12 	(c) An optional retirement annuity must be actuarially
30.13 	equivalent to a single-life annuity with no term certain and
30.14 	must be established by the board of directors of the Minnesota
30.15 	State Retirement System.  In establishing these optional
30.16 	retirement annuity forms, the board shall obtain the written
30.17 	recommendation of the actuary retained by the Legislative
30.18 	Commission on Pensions and Retirement under section 356.214.
30.19 	The recommendations must be retained as a part of the permanent
30.20 	records of the board.

30.21 	Sec. 70. Minnesota Statutes 2004, section 490.124,
30.22 	subdivision 12, is amended to read:
30.23 		Subd. 12.Refund.  (a) A person who ceases to be a
30.24 	judge but who does not qualify for a retirement annuity or other
30.25 	benefit under section 490.121is entitled to a refund in an
30.26 	amount that is equal to all of the member's employee
30.27 	contributions to the judges' retirement fund plus interest
30.28 	computed under section 352.22, subdivision 2.
30.29 	(b) A refund of contributions under paragraph (a)
30.30 	terminates all service credits and all rights and benefits of
30.31 	the judge and the judge's survivors under this chapter.
30.32 	(c) A person who becomes a judge again after taking a
30.33 	refund under paragraph (a) may reinstate the previously
30.34 	terminated allowable service credits credit, rights, and
30.35 	benefits by repaying the total amount of the previously received
30.36 	refund.  The refund repayment must include interest on the total
31.1 	amount previously received at an annual rate of 8.5 percent,
31.2 	compounded annually,from the date on which the refund was
31.3 	received until the date on which the refund is repaid.

31.4 	Sec. 71. Minnesota Statutes 2004, section 490.124,
31.5 	subdivision 13, is amended to read:
31.6 		Subd. 13.Death refund.  If a judge who has not received
31.7 	other benefits under this chapter dies and there are no survivor
31.8 	benefits payable under this chapter, a refund plus interest as
31.9 	provided in subdivision 12 is payable to the last designated
31.10 	beneficiary named on a form filed with the director before the
31.11 	death of the judge, or,if no designation is on file, the refund
31.12 	is payable to the estate of the deceased judge.

31.13 	Sec. 72. Minnesota Statutes 2004, section 490.125,
31.14 	subdivision 1, is amended to read:
31.15 		Subdivision 1.Mandatory retirement age.  Except as
31.16 	otherwise provided in sections 490.121 to 490.132, each a judge
31.17 	shall retire terminate active service as a judge on the judge's
31.18 	mandatory retirement date.

31.19 	Sec. 73. Minnesota Statutes 2004, section 490.126, is
31.20 	amended to read:
31.21 	490.126 PROCEDURES.
31.22 		Subdivision 1.Compulsory retirement. Proceedings for
31.23 	compulsory retirement of a judge, if necessary, shall must be
31.24 	conducted in accordance with rules issued by the Supreme Court
31.25 	pursuant to under section 490.16.
31.26 		Subd. 2.Vacancies. Any judge may make written
31.27 	application to the governor for retirement.  The governor
31.28 	thereupon shall direct the judge's retirement by written order
31.29 	which, when filed in the Office of the Secretary of State, shall
31.30 	effect effects a vacancy in the office to be filled as provided
31.31 	by law.
31.32 		Subd. 3.Application for annuity or refund. An 
31.33 	application for an annuity or a refund under sections 490.121 to
31.34 	490.132 may be made by the potential annuitant or by someone
31.35 	authorized to act for the potential annuitant.  Every
31.36 	application for an annuity or refund, with accompanied by a 
32.1 	proof of age and by a record of years of service when
32.2 	required, shall must be submitted to the governing
32.3 	body executive director of the Minnesota State Retirement System
32.4 	in a form prescribed by it the director.
32.5 		Subd. 4.Manner of payment. Unless otherwise
32.6 	specifically provided by statute or agreed upon by the annuitant
32.7 	and the governing body board of directors of the Minnesota State
32.8 	Retirement System, annuities payable under sections 490.121 to
32.9 	490.132 shall must be paid in the manner and at the intervals as
32.10 	prescribed by the executive director of the Minnesota State
32.11 	Retirement System.  The annuity shall cease ceases with the last
32.12 	payment received by the annuitant while living.
32.13 		Subd. 5.Exemption from process; no assignment. None of
32.14 	the money, annuities, or other benefits provided in this chapter
32.15 	is assignable either in law or equity or is subject to state
32.16 	estate tax, or to execution, levy, attachment, garnishment, or
32.17 	other legal process, except as provided in section 518.58,
32.18 	518.581, or 518.6111.

32.19 	Sec. 74. Minnesota Statutes 2004, section 490.133, is
32.20 	amended to read:
32.21 	490.133 RETIREMENT; TRANSITION PROVISIONS; TRANSFER TO
32.22 	COURT OF APPEALS.
32.23 	(a) If a judge to whom or to whose survivors benefits would
32.24 	be payable under sections 490.101 to 490.12,is elected or
32.25 	appointed to the Court of Appeals, that judge and the judge's
32.26 	survivors, shall continue to be eligible for benefits under
32.27 	those sections and not under sections 490.121 to 490.132.
32.28 	(b) In that the case of a judge to whom paragraph (a)
32.29 	applies, the service of the judge in the Court of Appeals shall 
32.30 	must be added to the prior service as district judge, probate
32.31 	judge, or judge of any other court of record in determining
32.32 	eligibility and the compensation of a judge of the Court of
32.33 	Appeals at the time of the judge's death, disability, or
32.34 	retirement shall be is the "compensation allotted to the office"
32.35 	for the purposes of calculating benefit amounts.
32.36 	(c) All other judges of the Court of Appeals and their
33.1 	survivors shall be are subject to the retirement and survivor's
33.2 	annuity provisions of sections 490.121 to 490.132.

33.3 	Sec. 75. [490A.01] BOARD OF JUDICIAL STANDARDS;
33.4 	ESTABLISHMENT.
33.5 		Subdivision 1.Establishment; composition. The Board on
33.6 	Judicial Standards is established.  The Board on Judicial
33.7 	Standards is a continuation of the board established by Laws
33.8 	1971, chapter 909, sections 1 and 2, as amended.  For the
33.9 	purposes of this chapter, "board" means the Board on Judicial
33.10 	Standards.
33.11 		Subd. 2.Composition; appointment. (a) The board
33.12 	consists of one judge of the Court of Appeals, three trial court
33.13 	judges, two lawyers who have practiced law in the state for at
33.14 	least ten years, and four citizens who are not judges, retired
33.15 	judges, or lawyers.
33.16 	(b) All members must be appointed by the governor with the
33.17 	advice and consent of the senate.  Senate confirmation is not
33.18 	required for judicial members.
33.19 		Subd. 3.Term maximum; membership termination. No member
33.20 	may serve more than two full four-year terms or their equivalent.
33.21 	Membership terminates if a member ceases to hold the position
33.22 	that qualified the member for appointment.
33.23 		Subd. 4.Member terms; compensation; removal. The
33.24 	membership terms, compensation, removal of members, and filling
33.25 	of vacancies on the board are as provided in section 15.0575.
33.26 		Subd. 5.Executive secretary appointment; salary. (a)
33.27 	The board shall appoint the executive secretary.
33.28 	(b) The salary of the executive secretary of the board is
33.29 	85 percent of the maximum salary provided for an administrative
33.30 	law judge under section 15A.083, subdivision 6a.

33.31 	Sec. 76. [490A.02] JUDICIAL STANDARDS BOARD; POWERS.
33.32 		Subdivision 1.Judicial disqualification. A judge is
33.33 	disqualified from acting as a judge, without a loss of salary,
33.34 	while there is pending an indictment or any information charging
33.35 	the judge with a crime that is punishable as a felony under
33.36 	either Minnesota law or federal law, or while there is pending a
34.1 	recommendation to the Supreme Court by the Board on Judicial
34.2 	Standards for the judge's removal or retirement.
34.3 		Subd. 2.Judicial suspension. On receipt of a
34.4 	recommendation of the Board on Judicial Standards or on its own
34.5 	motion, the Supreme Court may suspend a judge from office
34.6 	without salary when the judge pleads guilty to or no contest to
34.7 	or is found guilty of a crime that is punishable as a felony
34.8 	under either Minnesota law or federal law or any other crime
34.9 	that involves moral turpitude.  If the conviction is reversed,
34.10 	the suspension terminates and the judge must be paid a salary
34.11 	for the period of suspension.  If the judge is suspended and the
34.12 	conviction becomes final, the Supreme Court shall remove the
34.13 	judge from office.
34.14 		Subd. 3.Judicial disability. On receipt of a
34.15 	recommendation of the Board on Judicial Standards, the Supreme
34.16 	Court may retire a judge for a disability that the court
34.17 	determines seriously interferes with the performance of the
34.18 	judge's duties and is or is likely to become permanent, and
34.19 	censure or remove a judge for an action or inaction that may
34.20 	constitute persistent failure to perform the judge's duties,
34.21 	incompetence in performing the judge's duties, habitual
34.22 	intemperance, or conduct prejudicial to the administration of
34.23 	justice that brings the judicial office into disrepute.
34.24 		Subd. 4.Authority to reopen matters. The board is
34.25 	specifically empowered to reopen any matter wherein any
34.26 	information or evidence was previously precluded by a statute of
34.27 	limitations or by a previously existing provision of time
34.28 	limitation.
34.29 		Subd. 5.Retirement status. (a) A judge who is retired
34.30 	by the Supreme Court must be considered to have retired
34.31 	voluntarily.
34.32 	(b) This section and section 490A.01 must not affect the
34.33 	right of a judge who is suspended, retired, or removed under
34.34 	this section from qualifying for any pension or other retirement
34.35 	benefits to which the judge would otherwise be entitled by law
34.36 	to receive.
35.1 		Subd. 6.Eligibility for judicial office; practice
35.2 	law. A judge removed by the Supreme Court is ineligible for any
35.3 	future service in a judicial office.  The question of the right
35.4 	of a removed judge to practice law in this state must be
35.5 	referred to the proper authority for review.
35.6 		Subd. 7.Supreme court rules. The Supreme Court shall
35.7 	make rules to implement this section.

35.8 	Sec. 77. REPEALER; EFFECT ON BENEFIT COVERAGE.
 35.9 		Subdivision 1.Legislators retirement plan; repealed as
35.10 	obsolete. Minnesota Statutes 2004, sections 3A.01, subdivisions
35.11 	3, 4, 6a, and 7; 3A.02, subdivision 2; 3A.04, subdivision 1; and
35.12 	3A.09, are repealed.
35.13 		Subd. 2.Elective state officers retirement plan;
35.14 	repealed as obsolete. Minnesota Statutes 2004, sections
35.15 	352C.01; 352C.011; 352C.021; 352C.031; 352C.033; 352C.04;
35.16 	352C.051; 352C.09; and 352C.091, subdivisions 2 and 3, are
35.17 	repealed.
35.18 		Subd. 3.Judicial retirement plans; repealed as
35.19 	obsolete. Minnesota Statutes 2004, sections 490.021; 490.025,
35.20 	subdivisions 1, 2, 3, 4, and 6; 490.101; 490.102; 490.103;
35.21 	490.105; 490.106; 490.107; 490.108; 490.109; 490.1091; 490.12;
35.22 	and 490.121, subdivisions 2, 3, 5, 8, 9, 10, 11, 12, 16, 17, 18,
35.23 	19, and 20, are repealed.
35.24 		Subd. 4.Judicial standards board; repealed for
35.25 	relocation as minnesota statutes, chapter 490a. Minnesota
35.26 	Statutes 2004, sections 490.021; 490.025, subdivisions 1, 2, 3,
35.27 	4, and 6; 490.101; 490.102; 490.103; 490.105; 490.106; 490.107;
35.28 	490.108; 490.109; 490.1091; 490.12; and 490.121, subdivisions 2,
35.29 	3, 5, 8, 9, 10, 11, 12, 16, 17, 18, 19, and 20, are repealed.
35.30 		Subd. 5.Uniform judicial retirement plan; no benefit
35.31 	diminishment intended; procedure. Sections 32 to 76 are not
35.32 	intended to reduce or increase the entitlement of active,
35.33 	deferred, or retired judges to retirement annuities or benefits
35.34 	as of July 1, 2005, as reflected in the records of the Minnesota
35.35 	State Retirement System.  If the executive director of the
35.36 	Minnesota State Retirement System determines that any provisions
36.1 	of sections 32 to 76 functions to modify, impair, or diminish
36.2 	the retirement annuity or benefit entitlement of any judge that
36.3 	had accrued or earned before July 1, 2005, the executive
36.4 	director shall certify that determination and a recommendation
36.5 	as to the required legislative correction to the chair of the
36.6 	Legislative Commission on Pensions and Retirement, the chair of
36.7 	the senate State and Local Governmental Operations Committee,
36.8 	the chair of the house Governmental Operations and Veterans
36.9 	Affairs Policy Committee, and the executive director of the
36.10 	Legislative Commission on Pensions and Retirement on or before
36.11 	the October 1 next following that determination.

36.12 	Sec. 78. EFFECTIVE DATE.
 36.13 	This article is effective on July 1, 2005.

36.14 	ARTICLE 2
36.15 	COVERED SALARY; AVERAGE SALARY

36.16 	Section 1. Minnesota Statutes 2004, section 352.01, is
36.17 	amended by adding a subdivision to read:
36.18 		Subd. 14a.Average salary. (a) "Average salary" means
36.19 	the average of the highest five successive years of salary upon
36.20 	which the employee has made contributions to the retirement fund
36.21 	by payroll deductions.  Average salary must be based upon all
36.22 	allowable service if this service is less than five years.
36.23 	(b) "Average salary" does not include the payment of
36.24 	accrued unused annual leave or overtime paid at time of final
36.25 	separation from state service if paid in a lump sum nor does it
36.26 	include the reduced salary, if any, paid during the period the
36.27 	employee is entitled to workers' compensation benefit payments
36.28 	for temporary disability.
36.29 	(c) For an employee covered by the correctional state
36.30 	employees retirement plan, "average salary" means the average of
36.31 	the monthly salary during the employee's highest five successive
36.32 	years of salary as an employee covered by the general state
36.33 	employees retirement plan, or the correctional state employees
36.34 	retirement plan, or by a combination of the two.  If the total
36.35 	of the covered service is less than five years, the
36.36 	determination of average salary must be based on all allowable
37.1 	service.

37.2 	Sec. 2. Minnesota Statutes 2004, section 352.115,
37.3 	subdivision 2, is amended to read:
37.4 		Subd. 2.average salary normal retirement annuity.  The
37.5 	retirement annuity hereunder payable at normal retirement age or
37.6 	thereafter must be computed in accordance with the applicable
37.7 	provisions of the formula stated in subdivision 3, on the basis
37.8 	of the employee's average salary for the period of allowable
37.9 	service.  This retirement annuity is known as the "normal"
37.10 	retirement annuity.
37.11 	For each year of allowable service, "average salary" of an
37.12 	employee in determining a retirement annuity means the average
37.13 	of the highest five successive years of salary upon which the
37.14 	employee has made contributions to the retirement fund by
37.15 	payroll deductions.  Average salary must be based upon all
37.16 	allowable service if this service is less than five years.
37.17 	"Average salary" does not include the payment of accrued
37.18 	unused annual leave or overtime paid at time of final separation
37.19 	from state service if paid in a lump sum nor does it include the
37.20 	reduced salary, if any, paid during the period the employee is
37.21 	entitled to workers' compensation benefit payments for temporary
37.22 	disability.

37.23 	Sec. 3. Minnesota Statutes 2004, section 352.115,
37.24 	subdivision 3, is amended to read:
37.25 		Subd. 3.Retirement annuity formula.  (a) This paragraph,
37.26 	in conjunction with section 352.116, subdivision 1, applies to a
37.27 	person who became a covered employee or a member of a pension
37.28 	fund listed in section 356.30, subdivision 3, before July 1,
37.29 	1989, unless paragraph (b), in conjunction with section 352.116,
37.30 	subdivision 1a, produces a higher annuity amount, in which case
37.31 	paragraph (b) will apply.  The employee's average salary, as
37.32 	defined in section 352.01,subdivision 2 14a, multiplied by the
37.33 	percent specified in section 356.315, subdivision 1, per year of
37.34 	allowable service for the first ten years and the percent
37.35 	specified in section 356.315, subdivision 2, for each later year
37.36 	of allowable service and pro rata for completed months less than
38.1 	a full year shall determine the amount of the retirement annuity
38.2 	to which the employee is entitled.
38.3 	(b) This paragraph applies to a person who has become at
38.4 	least 55 years old and first became a covered employee after
38.5 	June 30, 1989, and to any other covered employee who has become
38.6 	at least 55 years old and whose annuity amount, when calculated
38.7 	under this paragraph and in conjunction with section 352.116,
38.8 	subdivision 1a, is higher than it is when calculated under
38.9 	paragraph (a), in conjunction with section 352.116, subdivision
38.10 	1.  The employee's average salary, as defined in section 352.01,
38.11 	subdivision 2 14a, multiplied by the percent specified in
38.12 	section 356.315, subdivision 2, for each year of allowable
38.13 	service and pro rata for months less than a full year shall
38.14 	determine the amount of the retirement annuity to which the
38.15 	employee is entitled.

38.16 	Sec. 4. Minnesota Statutes 2004, section 352.87,
38.17 	subdivision 3, is amended to read:
38.18 		Subd. 3.Retirement annuity formula.  A person specified
38.19 	in subdivision 1 will have is entitled to receive a retirement
38.20 	annuity applicable for allowable service credit under this
38.21 	section calculated by multiplying the employee's average salary,
38.22 	as defined in section 352.115 352.01, subdivision 2 14a, by the
38.23 	percent specified in section 356.315, subdivision 2a, for each
38.24 	year or portions of a year of allowable service credit.  No
38.25 	reduction for retirement prior to before the normal retirement
38.26 	age, as specified in section 352.01, subdivision 25, applies to
38.27 	service to which this section applies.

38.28 	Sec. 5. Minnesota Statutes 2004, section 352.93,
38.29 	subdivision 1, is amended to read:
38.30 		Subdivision 1.Basis of annuity; when to apply.  After
38.31 	separation from state service, an employee covered under section
38.32 	352.91 who has reached age 55 years and has credit for at least
38.33 	three years of covered correctional service or a combination of
38.34 	covered correctional service and regular Minnesota general
38.35 	employees state retirement System plan service is entitled upon
38.36 	application to a retirement annuity under this section,based
39.1 	only on covered correctional employees' service.  Application
39.2 	may be made no earlier than 60 days before the date the employee
39.3 	is eligible to retire by reason of both age and service
39.4 	requirements.
39.5 	In this section, "average salary" means the average of the
39.6 	monthly salary during the employee's highest five successive
39.7 	years of salary as an employee covered by the Minnesota State
39.8 	Retirement System.  Average salary must be based upon all
39.9 	allowable service if this service is less than five years.

39.10 	Sec. 6. Minnesota Statutes 2004, section 352C.021, is
39.11 	amended by adding a subdivision to read:
39.12 		Subd. 1a.Average salary. "Average salary," for purposes
39.13 	of calculating the normal retirement annuity under section
39.14 	352C.031, subdivision 4, means the average of the highest five
39.15 	successive years of salary upon which contributions have been
39.16 	made under section 352C.09.

39.17 	Sec. 7. Minnesota Statutes 2004, section 353.01,
39.18 	subdivision 10, is amended to read:
39.19 		Subd. 10.Salary.  (a) "Salary" means:
39.20 	(1) the periodic compensation of a public employee, before
39.21 	deductions for deferred compensation, supplemental retirement
39.22 	plans, or other voluntary salary reduction programs, and also
39.23 	means "wages" and includes net income from fees;
39.24 	(2) for a public employee who is covered by a supplemental
39.25 	retirement plan under section 356.24, subdivision 1, clause (8),
39.26 	(9), or (10), which require all plan contributions be made by
39.27 	the employer, the contribution to the applicable supplemental
39.28 	retirement plan when the contribution is from mandatory
39.29 	withholdings from employees' wages;and
39.30 	(2) (3) for a public employee who has prior service covered
39.31 	by a local police or firefighters relief association that has
39.32 	consolidated with the Public Employees Retirement Association or
39.33 	to which section 353.665 applies and who has elected coverage
39.34 	either under the public employees police and fire fund benefit
39.35 	plan under section 353A.08 following the consolidation or under
39.36 	section 353.665, subdivision 4, the rate of salary upon which
40.1 	member contributions to the special fund of the relief
40.2 	association were made prior to the effective date of the
40.3 	consolidation as specified by law and by bylaw provisions
40.4 	governing the relief association on the date of the initiation
40.5 	of the consolidation procedure and the actual periodic
40.6 	compensation of the public employee after the effective date of
40.7 	consolidation.
40.8 	(b) Salary does not mean:
40.9 	(1) the fees paid to district court reporters, unused
40.10 	annual vacation or sick leave payments, in lump-sum or periodic
40.11 	payments, severance payments, reimbursement of expenses,
40.12 	lump-sum settlements not attached to a specific earnings period,
40.13 	or workers' compensation payments;
40.14 	(2) employer-paid amounts used by an employee toward the
40.15 	cost of insurance coverage, employer-paid fringe benefits,
40.16 	flexible spending accounts, cafeteria plans, health care expense
40.17 	accounts, day care expenses, or any payments in lieu of any
40.18 	employer-paid group insurance coverage, including the difference
40.19 	between single and family rates that may be paid to a member
40.20 	with single coverage and certain amounts determined by the
40.21 	executive director to be ineligible;
40.22 	(3) the amount equal to that which the employing
40.23 	governmental subdivision would otherwise pay toward single or
40.24 	family insurance coverage for a covered employee when, through a
40.25 	contract or agreement with some but not all employees, the
40.26 	employer:
40.27 	(i) discontinues, or for new hires does not provide,
40.28 	payment toward the cost of the employee's selected insurance
40.29 	coverages under a group plan offered by the employer;
40.30 	(ii) makes the employee solely responsible for all
40.31 	contributions toward the cost of the employee's selected
40.32 	insurance coverages under a group plan offered by the employer,
40.33 	including any amount the employer makes toward other employees'
40.34 	selected insurance coverages under a group plan offered by the
40.35 	employer; and
40.36 	(iii) provides increased salary rates for employees who do
41.1 	not have any employer-paid group insurance coverages;
41.2 	(4) except as provided in section 353.86 or 353.87,
41.3 	compensation of any kind paid to volunteer ambulance service
41.4 	personnel or volunteer firefighters, as defined in subdivision
41.5 	35 or 36; and
41.6 	(5) the amount of compensation that exceeds the limitation
41.7 	provided in section 356.611.
41.8 	(c) Amounts provided to an employee by the employer through
41.9 	a grievance proceeding or a legal settlement are salary only if
41.10 	the settlement is reviewed by the executive director and the
41.11 	amounts are determined by the executive director to be
41.12 	consistent with paragraph (a) and prior determinations.

41.13 	Sec. 8. Minnesota Statutes 2004, section 353.01, is
41.14 	amended by adding a subdivision to read:
41.15 		Subd. 17a.Average salary. (a) "Average salary," for
41.16 	purposes of calculating a retirement annuity under section
41.17 	353.29, subdivision 3, means an amount equivalent to the average
41.18 	of the highest salary of the member, police officer, or
41.19 	firefighter, whichever applies, upon which employee
41.20 	contributions were paid for any five successive years of
41.21 	allowable service, based on dates of salary periods as listed on
41.22 	salary deduction reports.  Average salary must be based upon all
41.23 	allowable service if this service is less than five years.
41.24 	(b) "Average salary" may not include any reduced salary
41.25 	paid during a period in which the employee is entitled to
41.26 	benefit payments from workers' compensation for temporary
41.27 	disability, unless the average salary is higher, including this
41.28 	period.

41.29 	Sec. 9. Minnesota Statutes 2004, section 353.29,
41.30 	subdivision 3, is amended to read:
41.31 		Subd. 3.Retirement annuity formula.  (a) This paragraph,
41.32 	in conjunction with section 353.30, subdivisions 1, 1a, 1b, and
41.33 	1c, applies to any member who first became a public employee or
41.34 	a member of a pension fund listed in section 356.30, subdivision
41.35 	3, before July 1, 1989, unless paragraph (b), in conjunction
41.36 	with section 353.30, subdivision 5, produces a higher annuity
42.1 	amount, in which case paragraph (b) will apply.  The average
42.2 	salary as defined in section 353.01,subdivision 2 17a,
42.3 	multiplied by the percent specified in section 356.315,
42.4 	subdivision 3, for each year of allowable service for the first
42.5 	ten years and thereafter by the percent specified in section
42.6 	356.315, subdivision 4, per year of allowable service and
42.7 	completed months less than a full year for the "basic member,"
42.8 	and the percent specified in section 356.315, subdivision 1, for
42.9 	each year of allowable service for the first ten years and
42.10 	thereafter by the percent specified in section 356.315,
42.11 	subdivision 2, per year of allowable service and completed
42.12 	months less than a full year for the "coordinated member," shall
42.13 	determine the amount of the "normal" retirement annuity.
42.14 	(b) This paragraph applies to a member who has become at
42.15 	least 55 years old and first became a public employee after June
42.16 	30, 1989, and to any other member whose annuity amount, when
42.17 	calculated under this paragraph and in conjunction with section
42.18 	353.30, subdivision 5, is higher than it is when calculated
42.19 	under paragraph (a), in conjunction with section 353.30,
42.20 	subdivisions 1, 1a, 1b, and 1c.  The average salary, as defined
42.21 	in section 353.01,subdivision 2 17a, multiplied by the percent
42.22 	specified in section 356.315, subdivision 4, for each year of
42.23 	allowable service and completed months less than a full year for
42.24 	a basic member and the percent specified in section 356.315,
42.25 	subdivision 2, per year of allowable service and completed
42.26 	months less than a full year for a coordinated member, shall
42.27 	determine the amount of the normal retirement annuity.

42.28 	Sec. 10. Minnesota Statutes 2004, section 353.33,
42.29 	subdivision 3, is amended to read:
42.30 		Subd. 3.Computation of benefits.  This disability
42.31 	benefit is an amount equal to the normal annuity payable to a
42.32 	member who has reached normal retirement age with the same
42.33 	number of years of allowable service and the same average
42.34 	salary, as provided in section 353.01, subdivision 17a, and 
42.35 	section 353.29, subdivisions 2 and subdivision 3.
42.36 	A basic member shall receive a supplementary monthly
43.1 	benefit of $25 to age 65 or the five-year anniversary of the
43.2 	effective date of the disability benefit, whichever is later.
43.3 	If the disability benefits under this subdivision exceed
43.4 	the average salary as defined in section 353.29 353.01,
43.5 	subdivision 2 17a, the disability benefits must be reduced to an
43.6 	amount equal to said the average salary.

43.7 	Sec. 11. Minnesota Statutes 2004, section 353.651,
43.8 	subdivision 3, is amended to read:
43.9 		Subd. 3.Retirement annuity formula.  The average salary
43.10 	as defined in section 353.01,subdivision 2 17a, multiplied by
43.11 	the percent specified in section 356.315, subdivision 6, per
43.12 	year of allowable service determines the amount of the normal
43.13 	retirement annuity.  If the member has earned allowable service
43.14 	for performing services other than those of a police officer or
43.15 	firefighter, the annuity representing such that service is must
43.16 	be computed under sections 353.29 and 353.30.

43.17 	Sec. 12. Minnesota Statutes 2004, section 353.656,
43.18 	subdivision 1, is amended to read:
43.19 		Subdivision 1.In line of duty; computation of benefits.
 43.20 	A member of the police and fire plan who becomes disabled and
43.21 	physically unfit to perform duties as a police officer,
43.22 	firefighter, or paramedic as defined under section 353.64,
43.23 	subdivision 10, as a direct result of an injury, sickness, or
43.24 	other disability incurred in or arising out of any act of duty,
43.25 	which has or is expected to render the member physically or
43.26 	mentally unable to perform the duties as a police officer,
43.27 	firefighter, or paramedic as defined under section 353.64,
43.28 	subdivision 10, for a period of at least one year, shall receive
43.29 	disability benefits during the period of such disability.  The
43.30 	benefits must be in an amount equal to 60 percent of the
43.31 	"average salary" as defined in section 353.651 353.01,
43.32 	subdivision 2 17a, plus an additional percent specified in
43.33 	section 356.315, subdivision 6, of that average salary for each
43.34 	year of service in excess of 20 years.  If the disability under
43.35 	this subdivision occurs before the member has at least five
43.36 	years of allowable service credit in the police and fire plan,
44.1 	the disability benefit must be computed on the "average salary"
44.2 	from which deductions were made for contribution to the police
44.3 	and fire fund.

44.4 	Sec. 13. Minnesota Statutes 2004, section 354.05, is
44.5 	amended by adding a subdivision to read:
44.6 		Subd. 13a.Average salary. (a) "Average salary," for the
44.7 	purpose of determining the member's retirement annuity, means
44.8 	the average salary upon which contributions were made for the
44.9 	highest five successive years of formula service credit.
44.10 	(b) "Average salary" may not include any more than the
44.11 	equivalent of 60 monthly salary payments.
44.12 	(c) "Average salary" must be based upon all years of
44.13 	formula service credit if this service credit is less than five
44.14 	years.

44.15 	Sec. 14. Minnesota Statutes 2004, section 354.44,
44.16 	subdivision 6, is amended to read:
44.17 		Subd. 6.Computation of formula program retirement
44.18 	annuity.  (a) The formula retirement annuity must be computed in
44.19 	accordance with the applicable provisions of the formulas stated
44.20 	in paragraph (b) or (d) on the basis of each member's average
44.21 	salary under section 354.05, subdivision 13a,for the period of
44.22 	the member's formula service credit.
44.23 	For all years of formula service credit, "average salary,"
44.24 	for the purpose of determining the member's retirement annuity,
44.25 	means the average salary upon which contributions were made and
44.26 	upon which payments were made to increase the salary limitation
44.27 	provided in Minnesota Statutes 1971, section 354.511, for the
44.28 	highest five successive years of formula service credit
44.29 	provided, however, that such "average salary" shall not include
44.30 	any more than the equivalent of 60 monthly salary payments.
44.31 	Average salary must be based upon all years of formula service
44.32 	credit if this service credit is less than five years.
44.33 	(b) This paragraph, in conjunction with paragraph (c),
44.34 	applies to a person who first became a member of the association
44.35 	or a member of a pension fund listed in section 356.30,
44.36 	subdivision 3, before July 1, 1989, unless paragraph (d), in
45.1 	conjunction with paragraph (e), produces a higher annuity
45.2 	amount, in which case paragraph (d) applies.  The average salary
45.3 	as defined in paragraph (a) section 354.05, subdivision 13a,
45.4 	multiplied by the following percentages per year of formula
45.5 	service credit shall determine the amount of the annuity to
45.6 	which the member qualifying therefor is entitled:
45.7 	Coordinated Member   Basic Member
45.8 	Each year of service     the percent        the percent
45.9 	during first ten         specified in       specified in
45.10 	section 356.315,   section 356.315,
45.11 	subdivision 1,     subdivision 3,
45.12 	per year           per year
45.13 	Each year of service     the percent        the percent
45.14 	thereafter               specified in       specified in
45.15 	section 356.315,   section 356.315,
45.16 	subdivision 2,     subdivision 4,
45.17 	per year           per year
45.18 	(c)(i) This paragraph applies only to a person who first
45.19 	became a member of the association or a member of a pension fund
45.20 	listed in section 356.30, subdivision 3, before July 1, 1989,
45.21 	and whose annuity is higher when calculated under paragraph (b),
45.22 	in conjunction with this paragraph than when calculated under
45.23 	paragraph (d), in conjunction with paragraph (e).
45.24 	(ii) Where any member retires prior to normal retirement
45.25 	age under a formula annuity, the member shall be paid a
45.26 	retirement annuity in an amount equal to the normal annuity
45.27 	provided in paragraph (b) reduced by one-quarter of one percent
45.28 	for each month that the member is under normal retirement age at
45.29 	the time of retirement except that for any member who has 30 or
45.30 	more years of allowable service credit, the reduction shall be
45.31 	applied only for each month that the member is under age 62.
45.32 	(iii) Any member whose attained age plus credited allowable
45.33 	service totals 90 years is entitled, upon application, to a
45.34 	retirement annuity in an amount equal to the normal annuity
45.35 	provided in paragraph (b), without any reduction by reason of
45.36 	early retirement.
46.1 	(d) This paragraph applies to a member who has become at
46.2 	least 55 years old and first became a member of the association
46.3 	after June 30, 1989, and to any other member who has become at
46.4 	least 55 years old and whose annuity amount when calculated
46.5 	under this paragraph and in conjunction with paragraph (e), is
46.6 	higher than it is when calculated under paragraph (b), in
46.7 	conjunction with paragraph (c).  The average salary, as defined
46.8 	in paragraph (a) section 354.05, subdivision 13a,multiplied by
46.9 	the percent specified by section 356.315, subdivision 4, for
46.10 	each year of service for a basic member and by the percent
46.11 	specified in section 356.315, subdivision 2, for each year of
46.12 	service for a coordinated member shall determine the amount of
46.13 	the retirement annuity to which the member is entitled.
46.14 	(e) This paragraph applies to a person who has become at
46.15 	least 55 years old and first becomes a member of the association
46.16 	after June 30, 1989, and to any other member who has become at
46.17 	least 55 years old and whose annuity is higher when calculated
46.18 	under paragraph (d) in conjunction with this paragraph than when
46.19 	calculated under paragraph (b), in conjunction with paragraph
46.20 	(c).  An employee who retires under the formula annuity before
46.21 	the normal retirement age shall be paid the normal annuity
46.22 	provided in paragraph (d) reduced so that the reduced annuity is
46.23 	the actuarial equivalent of the annuity that would be payable to
46.24 	the employee if the employee deferred receipt of the annuity and
46.25 	the annuity amount were augmented at an annual rate of three
46.26 	percent compounded annually from the day the annuity begins to
46.27 	accrue until the normal retirement age.
46.28 	(f) No retirement annuity is payable to a former employee
46.29 	with a salary that exceeds 95 percent of the governor's salary
46.30 	unless and until the salary figures used in computing the
46.31 	highest five successive years average salary under paragraph (a)
46.32 	have been audited by the Teachers Retirement Association and
46.33 	determined by the executive director to comply with the
46.34 	requirements and limitations of section 354.05, subdivisions 35
46.35 	and 35a.

46.36 	Sec. 15. Minnesota Statutes 2004, section 354A.011, is
47.1 	amended by adding a subdivision to read:
47.2 		Subd. 7a.Average salary. "Average salary," for purposes
47.3 	of computing a normal coordinated program retirement annuity
47.4 	under section 354A.31, subdivision 4 or 4a, means an amount
47.5 	equal to the average salary upon which contributions were made
47.6 	for the highest five successive years of service credit but may
47.7 	not, in any event, include any more than the equivalent of 60
47.8 	monthly salary payments.  Average salary must be based upon all
47.9 	years of service credit if this service credit is less than five
47.10 	years.

47.11 	Sec. 16. Minnesota Statutes 2004, section 354A.31,
47.12 	subdivision 4, is amended to read:
47.13 		Subd. 4.Computation of the normal coordinated retirement
47.14 	annuity; minneapolis and st. paul funds.  (a) This subdivision
47.15 	applies to the coordinated programs of the Minneapolis Teachers
47.16 	Retirement Fund Association and the St. Paul Teachers Retirement
47.17 	Fund Association.
47.18 	(b) The normal coordinated retirement annuity shall be is 
47.19 	an amount equal to a retiring coordinated member's average
47.20 	salary under section 354A.011, subdivision 7a,multiplied by the
47.21 	retirement annuity formula percentage. Average salary for
47.22 	purposes of this section shall mean an amount equal to the
47.23 	average salary upon which contributions were made for the
47.24 	highest five successive years of service credit, but which shall
47.25 	not in any event include any more than the equivalent of 60
47.26 	monthly salary payments.  Average salary must be based upon all
47.27 	years of service credit if this service credit is less than five
47.28 	years.
47.29 	(c) This paragraph, in conjunction with subdivision 6,
47.30 	applies to a person who first became a member or a member in a
47.31 	pension fund listed in section 356.30, subdivision 3, before
47.32 	July 1, 1989, unless paragraph (d), in conjunction with
47.33 	subdivision 7, produces a higher annuity amount, in which case
47.34 	paragraph (d) will apply.  The retirement annuity formula
47.35 	percentage for purposes of this paragraph is the percent
47.36 	specified in section 356.315, subdivision 1, per year for each
48.1 	year of coordinated service for the first ten years and the
48.2 	percent specified in section 356.315, subdivision 2, for each
48.3 	year of coordinated service thereafter.
48.4 	(d) This paragraph applies to a person who has become at
48.5 	least 55 years old and who first becomes a member after June 30,
48.6 	1989, and to any other member who has become at least 55 years
48.7 	old and whose annuity amount, when calculated under this
48.8 	paragraph and in conjunction with subdivision 7 is higher than
48.9 	it is when calculated under paragraph (c), in conjunction with
48.10 	the provisions of subdivision 6.  The retirement annuity formula
48.11 	percentage for purposes of this paragraph is the percent
48.12 	specified in section 356.315, subdivision 2, for each year of
48.13 	coordinated service.

48.14 	Sec. 17. Minnesota Statutes 2004, section 354A.31,
48.15 	subdivision 4a, is amended to read:
48.16 		Subd. 4a.Computation of the normal coordinated
48.17 	retirement annuity; duluth fund.  (a) This subdivision applies
48.18 	to the new law coordinated program of the Duluth Teachers
48.19 	Retirement Fund Association.
48.20 	(b) The normal coordinated retirement annuity is an amount
48.21 	equal to a retiring coordinated member's average salary under
48.22 	section 354A.011, subdivision 7a,multiplied by the retirement
48.23 	annuity formula percentage. Average salary for purposes of this
48.24 	section means an amount equal to the average salary upon which
48.25 	contributions were made for the highest five successive years of
48.26 	service credit, but may not in any event include any more than
48.27 	the equivalent of 60 monthly salary payments.  Average salary
48.28 	must be based upon all years of service credit if this service
48.29 	credit is less than five years.
48.30 	(c) This paragraph, in conjunction with subdivision 6,
48.31 	applies to a person who first became a member or a member in a
48.32 	pension fund listed in section 356.30, subdivision 3, before
48.33 	July 1, 1989, unless paragraph (d), in conjunction with
48.34 	subdivision 7, produces a higher annuity amount, in which case
48.35 	paragraph (d) applies.  The retirement annuity formula
48.36 	percentage for purposes of this paragraph is the percent
49.1 	specified in section 356.315, subdivision 1, per year for each
49.2 	year of coordinated service for the first ten years and the
49.3 	percent specified in section 356.315, subdivision 2, for each
49.4 	subsequent year of coordinated service.
49.5 	(d) This paragraph applies to a person who is at least 55
49.6 	years old and who first becomes a member after June 30, 1989,
49.7 	and to any other member who is at least 55 years old and whose
49.8 	annuity amount, when calculated under this paragraph and in
49.9 	conjunction with subdivision 7, is higher than it is when
49.10 	calculated under paragraph (c) in conjunction with subdivision
49.11 	6.  The retirement annuity formula percentage for purposes of
49.12 	this paragraph is the percent specified in section 356.315,
49.13 	subdivision 2, for each year of coordinated service.

49.14 	Sec. 18. Minnesota Statutes 2004, section 422A.01, is
49.15 	amended by adding a subdivision to read:
49.16 		Subd. 4a.Average salary. (a) "Average salary" means the
49.17 	arithmetic average annual salary, wages, or compensation of the
49.18 	member from the city for any five calendar years out of the last
49.19 	ten calendar years of service, except as provided for in section
49.20 	422A.16, which may include the year in which the employee
49.21 	retires, as selected by the employee.
49.22 	(b) A member with more than five calendar years of service,
49.23 	but less than ten calendar years, may select any five calendar
49.24 	years of service to determine the average salary.  A member with
49.25 	less than five years of service with the city shall use all
49.26 	earnings to determine the average salary.

49.27 	Sec. 19. Minnesota Statutes 2004, section 422A.15,
49.28 	subdivision 1, is amended to read:
49.29 		Subdivision 1.Formula pension and annuity.  Except as
49.30 	otherwise provided in subdivision 3, each contributing member
49.31 	who, at the time of retirement, fulfills the conditions
49.32 	necessary to enable the member to retire, shall is entitled to 
49.33 	receive what shall be known as a "formula pension and annuity"
49.34 	equal to two percent for each year of allowable service for the
49.35 	first ten years and thereafter 2.5 percent per year of allowable
49.36 	service of the arithmetic average annual salary, wages or
50.1 	compensation of the member from the city for any five calendar
50.2 	years out of the last ten calendar years of service except as
50.3 	provided for in section 422A.16, which may include the year in
50.4 	which the employee retires, as selected by the employee,
50.5 	multiplied by the years of service credited by the retirement
50.6 	fund.  The formula pension and annuity shall must be computed on
50.7 	the single life plan but subject to the option selections
50.8 	provided for in section 422A.17.
50.9 	In order to be entitled to the formula pension and annuity
50.10 	herein provided for, the retiring employee at the time of
50.11 	cessation of employment and of actual retirement shall must have
50.12 	attained the age of 60 years or have been employed by the city
50.13 	not less than 30 years, or meet the qualifications provided for
50.14 	in section 422A.16, and in addition thereto have contributed to
50.15 	the retirement fund at the percentage rate prescribed by the
50.16 	retirement law applicable when the salary, wages or compensation
50.17 	was paid on all salaries, wages, or compensation received from
50.18 	the city or from an applicable employing unit.  The years of
50.19 	service to be applied in the formula pension and annuity shall 
50.20 	must be found and determined by the retirement board, except
50.21 	that no credit shall may be allowed for any year in which a back
50.22 	charge is owing at time of retirement and the earnings from any
50.23 	year in which a back charge is owing shall may not be used in
50.24 	determining the average annual salary.

50.25 	Sec. 20. Minnesota Statutes 2004, section 422A.16,
50.26 	subdivision 9, is amended to read:
50.27 		Subd. 9.Incompetency or death of member.  Any member of
50.28 	the contributing class who becomes permanently separated from
50.29 	the service of the city under subdivision 8, may, by an
50.30 	instrument in writing, filed with the municipal employees
50.31 	retirement board within 30 days after such the separation
50.32 	becomes permanent, elect to allow the member contributions
50.33 	to such the fund to the date of separation to remain on deposit
50.34 	in such the fund, and in such the event the member shall be 
50.35 	is entitled to receive a retirement allowance at age 65,
50.36 	provided the member, or someone acting in the member's behalf if
51.1 	the member be incompetent, shall must make a written application
51.2 	for such the retirement allowance in the same manner provided
51.3 	for in section 422A.17 and in accordance with the provisions of
51.4 	section 422A.15, subdivision 1,except for determining
51.5 	average annual salary. A member with more than five calendar
51.6 	years of service but less than ten calendar years may select any
51.7 	five calendar years of service to determine the average annual
51.8 	salary.  A member with less than five years of service with the
51.9 	city shall use all earnings to determine the average annual
51.10 	salary.
51.11 	If the contributing member dies before reaching the age of
51.12 	65 years, or having attained the age of 65 years without having
51.13 	made the election provided for herein, the net accumulated
51.14 	amount of deductions from the member's salary, pay or
51.15 	compensation, plus interest, to the member's credit on date of
51.16 	death shall be paid is payable to such the person or persons as
51.17 	have been nominated by written designation filed with the
51.18 	retirement board, in such the form as that the retirement board
51.19 	shall require requires.
51.20 	If the employee fails to make a designation, or if the
51.21 	person or persons designated by such the employee predeceases
51.22 	such the employee, the net accumulated credit to such the 
51.23 	employee's account on date of death shall be paid is payable to
51.24 	such the employee's estate.
51.25 	The provisions of subdivisions 4, 5,and 6 shall also apply
51.26 	to any member qualifying for benefits under this subdivision,
51.27 	except for purposes of this subdivision the age referred to in
51.28 	subdivision 4 shall be is 65 years.

51.29 	Sec. 21. Minnesota Statutes 2004, section 490.121,
51.30 	subdivision 21, is amended to read:
51.31 		Subd. 21.Final average compensation.  "Final average
51.32 	compensation" means the total amount of salary payable paid to a
51.33 	judge in the highest five years out of the last ten years prior
51.34 	to before the event of maturity of benefits termination of
51.35 	judicial service, divided by five; provided, however, that if
51.36 	the number of years of service by the judge equals or exceeds
52.1 	ten.  If the number of years of service by the judge is less
52.2 	than ten, but more than five,the highest five shall years of
52.3 	salary must be counted, and .If the number of years of service
52.4 	by the judge is less than five, the aggregate salary in such for
52.5 	the period shall of service must be divided by the number of
52.6 	months in such the period and multiplied by 12.

52.7 	Sec. 22. REPEALER.
 52.8 	Minnesota Statutes 2004, sections 352C.031, subdivision 3;
52.9 	353.29, subdivision 2; and 353.651, subdivision 2, are repealed.

52.10 	Sec. 23. EFFECTIVE DATE.
 52.11 	This article is effective July 1, 2005.

52.12 	ARTICLE 3
52.13 	ALLOWABLE SERVICE CREDIT

52.14 	Section 1. [356.195] SERVICE CREDIT PURCHASE PROCEDURES
52.15 	FOR STRIKE PERIODS.
52.16 		Subdivision 1.Covered plans. This section applies to
52.17 	all defined benefit plans specified in section 356.30,
52.18 	subdivision 3.
52.19 		Subd. 2.Purchase procedure for strike periods. (a) An
52.20 	employee covered by a plan specified in subdivision 1 may
52.21 	purchase allowable service credit in the applicable plan for any
52.22 	period of time during which the employee was on a public
52.23 	employee strike without pay, not to exceed a period of one year,
52.24 	if the employee makes a payment in lieu of salary deductions as
52.25 	specified in paragraphs (b) and (c), whichever is applicable.
52.26 	The employing unit, at its option, may pay the employer portion
52.27 	of the amount specified in paragraph (b) on behalf of its
52.28 	employees.
52.29 	(b) If payment is received by the applicable pension plan
52.30 	executive director within one year from the end of the strike,
52.31 	the payment amount is equal to the applicable employee and
52.32 	employer contribution rates specified in law for the applicable
52.33 	plan during the strike period, applied to the employee's rate of
52.34 	salary in effect at the conclusion of the strike for the period
52.35 	of the strike without pay, plus compound interest at a monthly
52.36 	rate of 0.71 percent from the last day of the strike period
53.1 	until the date payment is received.
53.2 	(c) If payment is received by the applicable pension fund
53.3 	director after one year and before five years from the end of
53.4 	the strike, the payment amount is the amount determined under
53.5 	section 356.551.
53.6 	(d) Payments may not be made more than five years after the
53.7 	end of the strike.

53.8 	Sec. 2. Minnesota Statutes 2004, section 490.121,
53.9 	subdivision 4, is amended to read:
53.10 		Subd. 4.Allowable service. (a) "Allowable service"
53.11 	means any calendar month, subject to the service credit limit in
53.12 	subdivision 22, served as a judge at any time, or served as a
53.13 	referee in probate for all referees in probate who were in
53.14 	office prior to January 1, 1974.
53.15 	(b) "Allowable service" also means a period of authorized
53.16 	leave of absence for which the judge has made a payment in lieu
53.17 	of contributions, not in an amount in excess of the service
53.18 	credit limit under subdivision 22.  To obtain the service
53.19 	credit, the judge shall pay an amount equal to the member and
53.20 	employer contribution rates under section 490.123, subdivisions
53.21 	1a and 1b, applied to the judge's average monthly salary rate
53.22 	during the authorized leave of absence and multiplied by the
53.23 	number of months of the authorized leave of absence, plus annual
53.24 	compound interest at the rate of 8.5 percent from the date of
53.25 	the termination of the leave to the date on which payment is
53.26 	made.  The payment must be made within one year of the date on
53.27 	which the authorized leave of absence terminated.  Service
53.28 	credit for an authorized leave of absence is in addition to a
53.29 	uniformed service leave under section 490.1211.

53.30 	Sec. 3. Laws 1999, chapter 222, article 16, section 16, as
53.31 	amended by Laws 2002, chapter 392, article 7, section 1, and
53.32 	Laws 2003, First Special Session chapter 12, article 6, section
53.33 	2, and Laws 2004, chapter 267, article 17, section 6, is amended
53.34 	to read:
53.35 	Sec. 16REPEALER.
 53.36 	(a) Sections 2 to 6 and 8 to 13 are repealed on May 16,
54.1 	2004.
54.2 	(b) Sections 1 and 7 are repealed on May 16, 2006 2007.

54.3 	Sec. 4. Laws 2000, chapter 461, article 4, section 4, as
54.4 	amended by Laws 2003, First Special Session chapter 12, article
54.5 	6, section 3, and Laws 2004, chapter 267, article 17, section 7,
54.6 	is amended to read:
54.7 	Sec. 4EFFECTIVE DATE; SUNSET REPEALER.
 54.8 	(a) Sections 1, 2, and 3 are effective on the day following
54.9 	final enactment.
54.10 	(b) Sections 1, 2, and 3, are repealed on May 16, 2006 2007.

54.11 	Sec. 5. METRO TRANSIT STRIKE PROVISION.
 54.12 	Notwithstanding the payment deadline specified in Minnesota
54.13 	Statutes, section 356.195, subdivision 2, paragraph (b), a Metro
54.14 	Transit employee covered by the general state employees
54.15 	retirement plan of the Minnesota State Retirement System who was
54.16 	on strike on or after January 1, 2004, and before the effective
54.17 	date of this section, is authorized to make a payment under that
54.18 	paragraph on or before one year after the effective date of this
54.19 	section.

54.20 	Sec. 6. CROSBY-IRONTON PUBLIC SCHOOL STRIKE PROVISION.
 54.21 	Notwithstanding the payment deadline specified in Minnesota
54.22 	Statutes, section 356.195, subdivision 2, paragraph (b), a
54.23 	Crosby-Ironton public school teacher covered by the Teachers
54.24 	Retirement Association who was on strike during a period that
54.25 	included April 1, 2005, and before the effective date of this
54.26 	section, is authorized to make a payment under that paragraph on
54.27 	or before one year after the effective date of this section.

54.28 	Sec. 7. EFFECTIVE DATE.
 54.29 	(a) Sections 1 and 3 to 6 are effective the day following
54.30 	final enactment.
54.31 	(b) Section 2 is effective retroactively from January 1,
54.32 	2005, and applies to any person who was in active service as a
54.33 	judge on or after that date and applies to an authorized leave
54.34 	of absence that occurred before or after that date.  For a
54.35 	person for whom section 2 is retroactive, the equivalent
54.36 	contribution payment must be made on or before July 1, 2006.

55.1 	ARTICLE 4
55.2 	ACTUARIAL AND FINANCIAL
55.3 	REPORTING CHANGES

55.4 	Section 1. Minnesota Statutes 2004, section 352.01,
55.5 	subdivision 12, is amended to read:
55.6 		Subd. 12.Actuarial equivalent.  "Actuarial equivalent"
55.7 	means the condition of one annuity or benefit having an equal
55.8 	actuarial present value as another annuity or benefit,
55.9 	determined as of a given date at a specified age with each
55.10 	actuarial present value based on the appropriate mortality table
55.11 	adopted by the board of directors based on the experience of the
55.12 	fund as recommended by the actuary retained by the Legislative
55.13 	Commission on Pensions and Retirement under section 356.214, and
55.14 	approved under section 356.215, subdivision 18,and using the
55.15 	applicable preretirement or postretirement interest rate
55.16 	assumption specified in section 356.215, subdivision 8.

55.17 	Sec. 2. Minnesota Statutes 2004, section 353.01,
55.18 	subdivision 14, is amended to read:
55.19 		Subd. 14.Actuarial equivalent.  "Actuarial equivalent"
55.20 	means the condition of one annuity or benefit having an equal
55.21 	actuarial present value as another annuity or benefit,
55.22 	determined as of a given date with each actuarial present value
55.23 	based on the appropriate mortality table adopted by the board of
55.24 	trustees based on the experience of the fund as recommended by
55.25 	the actuary retained by the Legislative Commission on Pensions
55.26 	and Retirement under section 356.214, and approved under section
55.27 	356.215, subdivision 18,and using the applicable preretirement
55.28 	or postretirement interest rate assumption specified in section
55.29 	356.215, subdivision 8.

55.30 	Sec. 3. Minnesota Statutes 2004, section 354.05,
55.31 	subdivision 7, is amended to read:
55.32 		Subd. 7.Actuarial equivalent.  "Actuarial equivalent"
55.33 	means the condition of one annuity or benefit having an equal
55.34 	actuarial present value as another annuity or benefit,
55.35 	determined as of a given date with each actuarial present value
55.36 	based on the appropriate mortality table adopted by the board of
56.1 	trustees based on the experience of the association as
56.2 	recommended by the actuary retained by the Legislative
56.3 	Commission on Pensions and Retirement under section 356.214, and
56.4 	approved under section 356.215, subdivision 18,and using the
56.5 	applicable preretirement or postretirement interest rate
56.6 	assumption specified in section 356.215, subdivision 8.

56.7 	Sec. 4. Minnesota Statutes 2004, section 354A.011,
56.8 	subdivision 3a, is amended to read:
56.9 		Subd. 3a.Actuarial equivalent.  "Actuarial equivalent"
56.10 	means the condition of one annuity or benefit having an equal
56.11 	actuarial present value as another annuity or benefit,
56.12 	determined as of a given date with each actuarial present value
56.13 	based on the appropriate mortality table adopted by the
56.14 	appropriate board of trustees based on the experience of that
56.15 	retirement fund association as recommended by the actuary
56.16 	retained by the Legislative Commission on Pensions and
56.17 	Retirement under section 356.214, and approved under section
56.18 	356.215, subdivision 18,and using the applicable preretirement
56.19 	or postretirement interest rate assumption specified in section
56.20 	356.215, subdivision 8.

56.21 	Sec. 5. Minnesota Statutes 2004, section 356.20,
56.22 	subdivision 4, is amended to read:
56.23 		Subd. 4.Contents of financial report.  (a) The financial
56.24 	report required by this section must contain financial
56.25 	statements and disclosures that indicate the financial
56.26 	operations and position of the retirement plan and fund.  The
56.27 	report must conform with generally accepted governmental
56.28 	accounting principles, applied on a consistent basis.  The
56.29 	report must be audited.  The report must include, as part of its
56.30 	exhibits or its footnotes, an actuarial disclosure item based on
56.31 	the actuarial valuation calculations prepared by the
56.32 	commission-retained actuary retained under section 356.214or by
56.33 	the actuary retained by the retirement fund or plan, if
56.34 	applicable whichever applies, according to applicable actuarial
56.35 	requirements enumerated in section 356.215, and specified in the
56.36 	most recent standards for actuarial work adopted by the
57.1 	Legislative Commission on Pensions and Retirement.  The accrued
57.2 	assets, the accrued liabilities, including accrued reserves, and
57.3 	the unfunded actuarial accrued liability of the fund or plan
57.4 	must be disclosed.  The disclosure item must contain a
57.5 	declaration by the actuary retained by the Legislative
57.6 	Commission on Pensions and Retirement under section 356.214or
57.7 	the actuary retained by the fund or plan, whichever applies,
57.8 	specifying that the required reserves for any retirement,
57.9 	disability, or survivor benefits provided under a benefit
57.10 	formula are computed in accordance with the entry age actuarial
57.11 	cost method and in accordance with the most recent applicable
57.12 	standards for actuarial work adopted by the Legislative
57.13 	Commission on Pensions and Retirement.
57.14 	(b) Assets of the fund or plan contained in the disclosure
57.15 	item must include the following statement of the actuarial value
57.16 	of current assets as defined in section 356.215, subdivision 1:
57.17 	Value         Value
57.18 	at cost       at market
57.19 	Cash, cash equivalents, and
57.20 	short-term securities           .........     .........
57.21 	Accounts receivable               .........     .........
57.22 	Accrued investment income         .........     .........
57.23 	Fixed income investments          .........     .........
57.24 	Equity investments other
57.25 	than real estate                .........     .........
57.26 	Real estate investments           .........     .........
57.27 	Equipment                         .........     .........
57.28 	Equity Participation in the Minnesota
57.29 	postretirement investment
57.30 	fund or the retirement 
57.31 	benefit fund.........     .........
57.32 	Other                             .........     .........
57.33 	
57.34 	Total assets
57.35 	Value at cost                                 .........
57.36 	Value at market                               .........
58.1 	Actuarial value of current assets             .........
58.2 	(c) The unfunded actuarial accrued liability of the fund or
58.3 	plan contained in the disclosure item must include the following
58.4 	measures of unfunded actuarial accrued liability, using
58.5 	the actuarial value of current assets:
58.6 	(1) the unfunded actuarial accrued liability, determined by
58.7 	subtracting the current assets and the present value of future
58.8 	normal costs from the total current and expected future benefit
58.9 	obligations; and
58.10 	(2) the unfunded pension benefit obligation, determined by
58.11 	subtracting the current assets from the actuarial present value
58.12 	of credited projected benefits.
58.13 	If the current assets of the fund or plan exceed the
58.14 	actuarial accrued liabilities, the excess must be disclosed and
58.15 	indicated as a surplus.
58.16 	(d) The pension benefit obligations schedule included in
58.17 	the disclosure must contain the following information on the
58.18 	benefit obligations:
58.19 	(1) the pension benefit obligation, determined as the
58.20 	actuarial present value of credited projected benefits on
58.21 	account of service rendered to date, separately identified as
58.22 	follows:
58.23 	(i) for annuitants;
58.24 	               retirement annuities;
58.25 	               disability benefits;
58.26 	               surviving spouse and child benefits;
58.27 	         (ii)  for former members without vested rights;
58.28 	         (iii) for deferred annuitants' benefits, including
58.29 	               any augmentation;
58.30 	         (iv)  for active employees;
58.31 	               accumulated employee contributions,
58.32 	               including allocated investment income;
58.33 	               employer-financed benefits vested;
58.34 	               employer-financed benefits nonvested;
58.35 	               total pension benefit obligation; and
58.36 	(2) if there are additional benefits not appropriately
59.1 	covered by the foregoing items of benefit obligations, a
59.2 	separate identification of the obligation.
59.3 	(e) The report must contain an itemized exhibit describing
59.4 	the administrative expenses of the plan, including, but not
59.5 	limited to, the following items, classified on a consistent
59.6 	basis from year to year, and with any further meaningful detail:
59.7 	(1) personnel expenses;
59.8 	(2) communication-related expenses;
59.9 	(3) office building and maintenance expenses;
59.10 	(4) professional services fees; and 
59.11 	(5) other expenses.
59.12 	(f) The report must contain an itemized exhibit describing
59.13 	the investment expenses of the plan, including, but not limited
59.14 	to, the following items, classified on a consistent basis from
59.15 	year to year, and with any further meaningful detail:
59.16 	(1) internal investment-related expenses; and 
59.17 	(2) external investment-related expenses.
59.18 	(g) Any additional statements or exhibits or more detailed
59.19 	or subdivided itemization of a disclosure item that will enable
59.20 	the management of the fund to portray a true interpretation of
59.21 	the fund's financial condition must be included in the
59.22 	additional statements or exhibits.

59.23 	Sec. 6. Minnesota Statutes 2004, section 422A.01,
59.24 	subdivision 6, is amended to read:
59.25 		Subd. 6.Present worth or present value.  "Present worth"
59.26 	or "present value" means that the present amount of money if
59.27 	increased at the applicable postretirement or preretirement
59.28 	interest rate assumption specified in section 356.215,
59.29 	subdivision 8, and based on the mortality table adopted by the
59.30 	board of trustees based on the experience of the fund as
59.31 	recommended by the actuary retained by the Legislative
59.32 	Commission on Pensions and Retirement under section 356.214, and
59.33 	approved under section 356.215, subdivision 18,will at
59.34 	retirement equal the actuarial accrued liability of the annuity
59.35 	already earned.

59.36 	Sec. 7. Minnesota Statutes 2004, section 490.121,
60.1 	subdivision 20, is amended to read:
60.2 		Subd. 20.Actuarial equivalent.  "Actuarial equivalent"
60.3 	means the condition of one annuity or benefit having an equal
60.4 	actuarial present value as another annuity or benefit,
60.5 	determined as of a given date with each actuarial present value
60.6 	based on the appropriate mortality table adopted by the board of
60.7 	trustees directors of the Minnesota State Retirement System 
60.8 	based on the experience of the fund as recommended by
60.9 	the commission-retained actuary retained under section 356.214,
60.10 	and approved under section 356.215, subdivision 18,and using
60.11 	the applicable preretirement or postretirement interest rate
60.12 	assumption specified in section 356.215, subdivision 8.

60.13 	Sec. 8. EFFECTIVE DATE.
 60.14 	(a) Sections 1 to 4, 6, and 7 are effective on July 1, 2005.
60.15 	(b) Section 5 is effective the day following final
60.16 	enactment and applies to annual financial reporting occurring on
60.17 	or after June 30, 2005.

60.18 	ARTICLE 5
60.19 	MEMBERSHIP INCLUSIONS
60.20 	AND EXCLUSIONS

60.21 	Section 1. Minnesota Statutes 2004, section 69.011, is
60.22 	amended by adding a subdivision to read:
60.23 		Subd. 2c.Ineligibility of certain police officers. A
60.24 	police officer employed by the University of Minnesota who is
60.25 	required by the Board of Regents to be a member of the
60.26 	University of Minnesota faculty retirement plan is not eligible
60.27 	to be included in any police state-aid certification under this
60.28 	section.

60.29 	Sec. 2. Minnesota Statutes 2004, section 352.01,
60.30 	subdivision 2a, is amended to read:
60.31 		Subd. 2a.Included employees.  (a) "State employee"
60.32 	includes:
60.33 	(1) employees of the Minnesota Historical Society;
60.34 	(2) employees of the State Horticultural Society;
60.35 	(3) employees of the Disabled American Veterans, Department
60.36 	of Minnesota, Veterans of Foreign Wars, Department of Minnesota,
61.1 	if employed before July 1, 1963;
61.2 	(4) employees of the Minnesota Crop Improvement
61.3 	Association;
61.4 	(5) employees of the adjutant general who are paid from
61.5 	federal funds and who are not covered by any federal civilian
61.6 	employees retirement system;
61.7 	(6) employees of the Minnesota State Colleges and
61.8 	Universities employed under the university or college activities
61.9 	program;
61.10 	(7) currently contributing employees covered by the system
61.11 	who are temporarily employed by the legislature during a
61.12 	legislative session or any currently contributing employee
61.13 	employed for any special service as defined in subdivision 2b,
61.14 	clause (8);
61.15 	(8) employees of the Armory Building Commission;
61.16 	(9) employees of the legislature appointed without a limit
61.17 	on the duration of their employment and persons employed or
61.18 	designated by the legislature or by a legislative committee or
61.19 	commission or other competent authority to conduct a special
61.20 	inquiry, investigation, examination, or installation;
61.21 	(10) trainees who are employed on a full-time established
61.22 	training program performing the duties of the classified
61.23 	position for which they will be eligible to receive immediate
61.24 	appointment at the completion of the training period;
61.25 	(11) employees of the Minnesota Safety Council;
61.26 	(12) any employees on authorized leave of absence from the
61.27 	Transit Operating Division of the former Metropolitan Transit
61.28 	Commission who are employed by the labor organization which is
61.29 	the exclusive bargaining agent representing employees of the
61.30 	Transit Operating Division;
61.31 	(13) employees of the Metropolitan Council, Metropolitan
61.32 	Parks and Open Space Commission, Metropolitan Sports Facilities
61.33 	Commission, Metropolitan Mosquito Control Commission, or
61.34 	Metropolitan Radio Board unless excluded or covered by another
61.35 	public pension fund or plan under section 473.415, subdivision
61.36 	3;
62.1 	(14) judges of the Tax Court;
62.2 	(15) personnel employed on June 30, 1992, by the University
62.3 	of Minnesota in the management, operation, or maintenance of its
62.4 	heating plant facilities, whose employment transfers to an
62.5 	employer assuming operation of the heating plant facilities, so
62.6 	long as the person is employed at the University of Minnesota
62.7 	heating plant by that employer or by its successor organization;
62.8 	and 
62.9 	(16) seasonal help in the classified service employed by
62.10 	the Department of Revenue; and 
62.11 	(17) persons employed by the Department of Commerce as a
62.12 	peace officer in the Insurance Fraud Prevention Division under
62.13 	section 45.0135 who have attained the mandatory retirement age
62.14 	specified in section 43A.34, subdivision 4.
62.15 	(b) Employees specified in paragraph (a), clause (15), are
62.16 	included employees under paragraph (a) if employer and employee
62.17 	contributions are made in a timely manner in the amounts
62.18 	required by section 352.04.  Employee contributions must be
62.19 	deducted from salary.  Employer contributions are the sole
62.20 	obligation of the employer assuming operation of the University
62.21 	of Minnesota heating plant facilities or any successor
62.22 	organizations to that employer.

62.23 	Sec. 3. Minnesota Statutes 2004, section 352.91, is
62.24 	amended by adding a subdivision to read:
62.25 		Subd. 4a.Process for evaluating and recommending
62.26 	potential employment positions for membership inclusion. (a)
62.27 	The Department of Corrections and the Department of Human
62.28 	Services must establish a procedure for evaluating periodic
62.29 	requests by department employees for qualification for
62.30 	recommendation by the commissioner for inclusion of the
62.31 	employment position in the correctional facility or human
62.32 	services facility in the correctional retirement plan and for
62.33 	periodically determining employment positions that no longer
62.34 	qualify for continued correctional retirement plan coverage.
62.35 	(b) The procedure must provide for an evaluation of the
62.36 	extent of the employee's working time spent in direct contact
63.1 	with patients or inmates, the extent of the physical hazard that
63.2 	the employee is routinely subjected to in the course of
63.3 	employment, and the extent of intervention routinely expected of
63.4 	the employee in the event of a facility incident.  The
63.5 	percentage of routine direct contact with inmates or patients
63.6 	may not be less than 75 percent.
63.7 	(c) The applicable commissioner shall notify the employee
63.8 	of the determination of the appropriateness of recommending the
63.9 	employment position for inclusion in the correctional retirement
63.10 	plan, if the evaluation procedure results in a finding that the
63.11 	employee:
63.12 	(1) routinely spends 75 percent of the employee's time in
63.13 	direct contact with inmates or patients; and 
63.14 	(2) is regularly engaged in the rehabilitation, treatment,
63.15 	custody, or supervision of inmates or patients.
63.16 	(d) After providing the affected employee an opportunity to
63.17 	dispute or clarify any evaluation determinations, if the
63.18 	commissioner determines that the employment position is
63.19 	appropriate for inclusion in the correctional retirement plan,
63.20 	the commissioner shall forward that recommendation and
63.21 	supporting documentation to the chair of the Legislative
63.22 	Commission on Pensions and Retirement, the chair of the State
63.23 	and Local Governmental Operations Committee of the senate, the
63.24 	chair of the Governmental Operations and Veterans Affairs Policy
63.25 	Committee of the house of representatives, and the executive
63.26 	director of the Legislative Commission on Pensions and
63.27 	Retirement in the form of the appropriate proposed legislation.
63.28 	The recommendation must be forwarded to the legislature before
63.29 	January 15 for the recommendation to be considered in that
63.30 	year's legislative session.

63.31 	Sec. 4. Minnesota Statutes 2004, section 352B.01,
63.32 	subdivision 2, is amended to read:
63.33 		Subd. 2.Member.  "Member" means:
63.34 	(1) a State Patrol member currently employed after June 30,
63.35 	1943, under section 299D.03 by the state, who is a peace officer
63.36 	under section 626.84, and whose salary or compensation is paid
64.1 	out of state funds;
64.2 	(2) a conservation officer employed under section 97A.201,
64.3 	currently employed by the state, whose salary or compensation is
64.4 	paid out of state funds;
64.5 	(3) a crime bureau officer who was employed by the crime
64.6 	bureau and was a member of the Highway Patrolmen's retirement
64.7 	fund on July 1, 1978, whether or not that person has the power
64.8 	of arrest by warrant after that date, or who is employed as
64.9 	police personnel, with powers of arrest by warrant under section
64.10 	299C.04, and who is currently employed by the state, and whose
64.11 	salary or compensation is paid out of state funds;
64.12 	(4) a person who is employed by the state in the Department
64.13 	of Public Safety in a data processing management position with
64.14 	salary or compensation paid from state funds, who was a crime
64.15 	bureau officer covered by the State Patrol retirement plan on
64.16 	August 15, 1987, and who was initially hired in the data
64.17 	processing management position within the department during
64.18 	September 1987, or January 1988, with membership continuing for
64.19 	the duration of the person's employment in that position,
64.20 	whether or not the person has the power of arrest by warrant
64.21 	after August 15, 1987;
64.22 	(5) a public safety employee defined as a peace officer in
64.23 	section 626.84, subdivision 1, paragraph (c), and employed with
64.24 	the Division of Alcohol and Gambling Enforcement under section
64.25 	299L.01; and 
64.26 	(6) a Fugitive Apprehension Unit officer after October 31,
64.27 	2000, employed by the Office of Special Investigations of the
64.28 	Department of Corrections who is a peace officer under section
64.29 	626.84; and 
64.30 	(7) an employee of the Department of Commerce defined as a
64.31 	peace officer in section 626.84, subdivision 1, paragraph (c),
64.32 	who is employed by the Division of Insurance Fraud Prevention
64.33 	under section 45.0135 after January 1, 2005, and who has not
64.34 	attained the mandatory retirement age specified in section
64.35 	43A.34, subdivision 4.

64.36 	Sec. 5. Minnesota Statutes 2004, section 353.01,
65.1 	subdivision 6, is amended to read:
65.2 		Subd. 6.Governmental subdivision.  (a) "Governmental
65.3 	subdivision" means a county, city, town, school district within
65.4 	this state, or a department or unit of state government, or any
65.5 	public body whose revenues are derived from taxation, fees,
65.6 	assessments or from other sources.
65.7 	(b) Governmental subdivision also means the Public
65.8 	Employees Retirement Association, the League of Minnesota
65.9 	Cities, the Association of Metropolitan Municipalities, public
65.10 	hospitals owned or operated by, or an integral part of, a
65.11 	governmental subdivision or governmental subdivisions, the
65.12 	Association of Minnesota Counties, the Metropolitan Intercounty
65.13 	Association, the Minnesota Municipal Utilities Association, the
65.14 	Metropolitan Airports Commission, the University of Minnesota
65.15 	with respect to police officers covered by the public employees
65.16 	police and fire retirement plan,the Minneapolis Employees
65.17 	Retirement Fund for employment initially commenced after June
65.18 	30, 1979, the Range Association of Municipalities and Schools,
65.19 	soil and water conservation districts, economic development
65.20 	authorities created or operating under sections 469.090 to
65.21 	469.108, the Port Authority of the city of St. Paul, the Spring
65.22 	Lake Park Fire Department, incorporated, the Lake Johanna
65.23 	Volunteer Fire Department, incorporated, the Red Wing
65.24 	Environmental Learning Center, and the Dakota County
65.25 	Agricultural Society.
65.26 	(c) Governmental subdivision does not mean any municipal
65.27 	housing and redevelopment authority organized under the
65.28 	provisions of sections 469.001 to 469.047; or any port authority
65.29 	organized under sections 469.048 to 469.089 other than the Port
65.30 	Authority of the city of St. Paul; or any hospital district
65.31 	organized or reorganized prior to July 1, 1975, under sections
65.32 	447.31 to 447.37 or the successor of the district, nor the
65.33 	Minneapolis Community Development Agency.

65.34 	Sec. 6. Minnesota Statutes 2004, section 353.64, is
65.35 	amended by adding a subdivision to read:
65.36 		Subd. 6a.University of minnesota police officers;
66.1 	exclusion. (a) Unless paragraph (b) applies, a person who is
66.2 	employed as a peace officer by the University of Minnesota at
66.3 	any campus or facility of the university, who is required by the
66.4 	university to be and is licensed as a peace officer by the
66.5 	Minnesota Peace Officer Standards and Training Board under
66.6 	sections 626.84 to 626.863, and who has the full power of arrest
66.7 	is a member of the public employees police and fire retirement
66.8 	plan.
66.9 	(b) A police officer employed by the University of
66.10 	Minnesota who is required by the Board of Regents to contribute
66.11 	to the University of Minnesota faculty retirement plan is not
66.12 	eligible to be a member of the public employees police and fire
66.13 	retirement plan.

66.14 	Sec. 7. EFFECTIVE DATE.
 66.15 	(a) Sections 1, 3, 5, and 6 are effective July 1, 2005.
66.16 	(b) Sections 2 and 4 are effective retroactively from
66.17 	January 1, 2005.

66.18 	ARTICLE 6
66.19 	RETIREMENT CONTRIBUTIONS

66.20 	Section 1. Minnesota Statutes 2004, section 353.28,
66.21 	subdivision 5, is amended to read:
66.22 		Subd. 5.Interest charges chargeable on amounts due.  Any
66.23 	amount due under this section or section 353.27, subdivision 4,
66.24 	is payable with interest at an annual compound rate of 8.5
66.25 	percent compounded annually from the date due until the date
66.26 	payment is received by the association, with a minimum interest
66.27 	charge of $10. Interest for past due payments of excess police
66.28 	state aid under section 69.031, subdivision 5, must be charged
66.29 	at an annual rate of 8.5 percent compounded annually.

66.30 	Sec. 2. Minnesota Statutes 2004, section 353.28,
66.31 	subdivision 6, is amended to read:
66.32 		Subd. 6.failure to pay collection of unpaid amounts. (a) 
66.33 	If the a governmental subdivision which receives the direct
66.34 	proceeds of property taxation fails to pay amounts an amount due
66.35 	under chapters chapter 353, 353A, 353B, 353C, and or 353D or
66.36 	fails to make payments of excess police state aid to the public
67.1 	employees police and fire fund under section 69.031, subdivision
67.2 	5, the executive director shall certify those amounts the amount 
67.3 	to the governmental subdivision for payment.  If the
67.4 	governmental subdivision fails to remit the sum so due in a
67.5 	timely fashion, the executive director shall certify amounts the
67.6 	amount to the applicable county auditor for collection.  The
67.7 	county auditor shall collect such amounts the amount out of the
67.8 	revenue of the governmental subdivision, or shall add them the
67.9 	amount to the levy of the governmental subdivision and make
67.10 	payment directly to the association.  This tax shall must be
67.11 	levied, collected, and apportioned in the manner that other
67.12 	taxes are levied, collected, and apportioned.
67.13 	(b) If a governmental subdivision which is not funded
67.14 	directly from the proceeds of property taxation fails to pay an
67.15 	amount due under this chapter, the executive director shall
67.16 	certify the amount to the governmental subdivision for payment.
67.17 	If the governmental subdivision fails to pay the amount for a
67.18 	period of 60 days after certification, the executive director
67.19 	shall certify the amount to the commissioner of finance, who
67.20 	shall deduct the amount from any subsequent state-aid payment or
67.21 	state appropriation amount applicable to the governmental
67.22 	subdivision.

67.23 	Sec. 3. EFFECTIVE DATE.
 67.24 	Sections 1 and 2 are effective July 1, 2005.

67.25 	ARTICLE 7
67.26 	PENSION BENEFITS UPON PRIVATIZATION

67.27 	Section 1. Minnesota Statutes 2004, section 353F.02,
67.28 	subdivision 4, is amended to read:
67.29 		Subd. 4.Medical facility.  "Medical facility" means:
67.30 	(1) Bridges Medical Services;
67.31 	(2) the Fair Oaks Lodge, Wadena;
67.32 	(2) (3) the Glencoe Area Health Center;
67.33 	(3) (4) the Hutchinson Area Health Care;
67.34 	(5) the Kanabec Hospital;
67.35 	(4) (6) the Luverne Public Hospital;
67.36 	(7) the Northfield Hospital;
68.1 	(5) (8) the RenVilla Nursing Home;
68.2 	(6) (9) the Renville County Hospital in Olivia;
68.3 	(7) (10) the St. Peter Community Healthcare Center; and
68.4 	(8) (11) the Waconia-Ridgeview Medical Center.

68.5 	Sec. 2. Laws 2004, chapter 267, article 12, section 4, is
68.6 	amended to read:
68.7 	Sec. 4EFFECTIVE DATE.
 68.8 	(a) Section 1, relating to the Fair Oaks Lodge, Wadena, is
68.9 	effective upon the latter of:
68.10 	(1) the day after the governing body of Todd County and its
68.11 	chief clerical officer timely complete their compliance with
68.12 	Minnesota Statutes, section 645.021, subdivisions 2 and 3; and
68.13 	(2) the day after the governing body of Wadena County and
68.14 	its chief clerical officer timely complete their compliance with
68.15 	Minnesota Statutes, section 645.021, subdivisions 2 and 3.
68.16 	(b) Section 1, relating to the RenVilla Nursing Home, is
68.17 	effective upon the latter of:
68.18 	(1) the day after the governing body of the city of
68.19 	Renville and its chief clerical officer timely complete their
68.20 	compliance with Minnesota Statutes, section 645.021,
68.21 	subdivisions 2 and 3, except that the certificate of approval
68.22 	must be filed before January 1, 2006; and
68.23 	(2) the first day of the month next following certification
68.24 	to the governing body of the city of Renville by the executive
68.25 	director of the Public Employees Retirement Association that the
68.26 	actuarial accrued liability of the special benefit coverage
68.27 	proposed for extension to the privatized RenVilla Nursing Home
68.28 	employees under section 1 does not exceed the actuarial gain
68.29 	otherwise to be accrued by the Public Employees Retirement
68.30 	Association, as calculated by the consulting actuary retained by
68.31 	the Legislative Commission on Pensions and Retirement, or the
68.32 	actuary retained under Minnesota Statutes, section 356.214,
68.33 	whichever is applicable.
68.34 	(c) The cost of the actuarial calculations must be borne by
68.35 	the city of Renville or the purchaser of the RenVilla Nursing
68.36 	Home.
69.1 	(d) Section 1, relating to the St. Peter Community
69.2 	Healthcare Center, is effective upon the latter of:
69.3 	(1) the day after the governing body of the city of St.
69.4 	Peter and its chief clerical officer timely complete their
69.5 	compliance with Minnesota Statutes, section 645.021,
69.6 	subdivisions 2 and 3; and
69.7 	(2) the first day of the month next following certification
69.8 	to the governing body of the city of St. Peter by the executive
69.9 	director of the Public Employees Retirement Association that the
69.10 	actuarial accrued liability of the special benefit coverage
69.11 	proposed for extension to the privatized St. Peter Community
69.12 	Healthcare Center employees under section 1 does not exceed the
69.13 	actuarial gain otherwise to be accrued by the Public Employees
69.14 	Retirement Association, as calculated by the consulting actuary
69.15 	retained by the Legislative Commission on Pensions and
69.16 	Retirement, or the actuary retained under Minnesota Statutes,
69.17 	section 356.214, whichever is applicable.
69.18 	(e) The cost of the actuarial calculations must be borne by
69.19 	the city of St. Peter or the purchaser of the St. Peter
69.20 	Community Healthcare Center.
69.21 	(f) If the required actions under paragraphs (b) and (c)
69.22 	occur, section 1 applies retroactively to the RenVilla Nursing
69.23 	Home as of the date of privatization.
69.24 	(g) If the required actions under paragraph (a) occur,
69.25 	section 1 applies retroactively to Fair Oaks Lodge, Wadena, as
69.26 	of January 1, 2004.
69.27 	(h) Sections 2 and 3 are effective on the day following
69.28 	final enactment.

69.29 	Sec. 3. EFFECTIVE DATE.
 69.30 	(a) Section 1, relating to Bridges Medical Services, is
69.31 	effective upon the later of:
69.32 	(1) the day after the governing body of the city of Ada and
69.33 	its chief clerical officer timely complete their compliance with
69.34 	Minnesota Statutes, section 645.021, subdivisions 2 and 3; and 
69.35 	(2) the first day of the month next following certification
69.36 	to the governing body of the city of Ada by the executive
70.1 	director of the Public Employees Retirement Association that the
70.2 	actuarial accrued liability of the special benefit coverage
70.3 	proposed for extension to the privatized Bridges Medical
70.4 	Services employees under section 1 does not exceed the actuarial
70.5 	gain otherwise to be accrued by the Public Employees Retirement
70.6 	Association, as calculated by the consulting actuary retained
70.7 	under Minnesota Statutes, section 356.214.
70.8 	(b) Section 1, relating to the Hutchinson Area Health Care,
70.9 	is effective upon the later of:
70.10 	(1) the day after the governing body of the city of
70.11 	Hutchinson and its chief clerical officer timely complete their
70.12 	compliance with Minnesota Statutes, section 645.021,
70.13 	subdivisions 2 and 3; and 
70.14 	(2) the first day of the month next following certification
70.15 	to the governing body of the city of Hutchinson by the executive
70.16 	director of the Public Employees Retirement Association that the
70.17 	actuarial accrued liability of the special benefit coverage
70.18 	proposed for extension to the privatized Hutchinson Area Health
70.19 	Care employees under section 1 does not exceed the actuarial
70.20 	gain otherwise to be accrued by the Public Employees Retirement
70.21 	Association, as calculated by the consulting actuary retained by
70.22 	the Legislative Commission on Pensions and Retirement.
70.23 	(c) Section 1, relating to the Northfield Hospital, is
70.24 	effective upon the later of:
70.25 	(1) the day after the governing body of the city of
70.26 	Northfield and its chief clerical officer timely complete their
70.27 	compliance with Minnesota Statutes, section 645.021,
70.28 	subdivisions 2 and 3; and 
70.29 	(2) the first day of the month next following certification
70.30 	to the governing body of the city of Northfield by the executive
70.31 	director of the Public Employees Retirement Association that the
70.32 	actuarial accrued liability of the special benefit coverage
70.33 	proposed for extension to the privatized Northfield Hospital
70.34 	employees under section 1 does not exceed the actuarial gain
70.35 	otherwise to be accrued by the Public Employees Retirement
70.36 	Association, as calculated by the consulting actuary retained by
71.1 	the Legislative Commission on Pensions and Retirement.
71.2 	(d) The cost of the actuarial calculations must be borne by
71.3 	the facility, the city in which the facility is located, or the
71.4 	purchaser of the facility.
71.5 	(e) If the required actions in paragraphs (a), (b), or (c)
71.6 	and (d) occur, section 1 applies retroactively to the date of
71.7 	privatization.
71.8 	(f) Section 2 is effective the day following final
71.9 	enactment.

71.10 	ARTICLE 8
71.11 	FIRST CLASS CITY TEACHER
71.12 	RETIREMENT FUND ASSOCIATIONS

71.13 	Section 1. Minnesota Statutes 2004, section 354A.021, is
71.14 	amended by adding a subdivision to read:
71.15 		Subd. 9.Updated articles of incorporation and bylaws;
71.16 	filing. (a) On or before July 1, 2006, and within six months of
71.17 	the date of the approval of any amendment to the articles of
71.18 	incorporation or bylaws, the chief administrative officer of
71.19 	each first class city teacher retirement fund association shall
71.20 	prepare and publish an updated compilation of the articles of
71.21 	incorporation and the bylaws of the association.
71.22 	(b) The chief administrative officer of the first class
71.23 	city teacher retirement fund association must certify the
71.24 	accuracy and the completeness of the compilation.
71.25 	(c) The compilation of the articles of incorporation and
71.26 	bylaws of a first class city teacher retirement fund association
71.27 	must contain an index.
71.28 	(d) The compilation must be made available to association
71.29 	members and other interested parties.  The association may
71.30 	charge a fee for a copy that reflects the price of printing or
71.31 	otherwise producing the copy.  Two copies of the compilation
71.32 	must be filed, without charge, by each retirement fund
71.33 	association with the Legislation Commission on Pensions and
71.34 	Retirement, the Legislative Reference Library, the state
71.35 	auditor, the commissioner of education, the chancellor of the
71.36 	Minnesota State Colleges and Universities system, and the
72.1 	superintendent of the applicable school district.
72.2 	(e) A first class city teacher retirement fund association
72.3 	may contract with the revisor of statutes for the preparation of
72.4 	the compilation.
72.5 	(f) If a first class city teacher retirement fund
72.6 	association makes an updated copy of its articles of
72.7 	incorporation and bylaws available on its Web site, the
72.8 	retirement fund association is not obligated to file a hard copy
72.9 	of the documents under paragraph (d) for the applicable filing
72.10 	period.

72.11 	Sec. 2. EFFECTIVE DATE.
 72.12 	Section 1 is effective July 1, 2005.

72.13 	ARTICLE 9
72.14 	MINNESOTA STATE COLLEGES AND UNIVERSITIES
72.15 	INDIVIDUAL RETIREMENT ACCOUNT PLAN CHANGES

72.16 	Section 1. Minnesota Statutes 2004, section 354B.25,
72.17 	subdivision 2, is amended to read:
72.18 		Subd. 2.Investment options. (a) The plan administrator
72.19 	shall arrange for the purchase of investment products.
72.20 	(b) The investment products must be purchased with
72.21 	contributions under section 354B.23 or with money or assets
72.22 	otherwise provided by law by authority of the board.
72.23 	(c) Various investment accounts offered through the
72.24 	Minnesota supplemental investment fund established under section
72.25 	11A.17 and administered by the State Board of Investment is one
72.26 	of the may be included as investment products for the individual
72.27 	retirement account plan.  Direct access must also be provided to
72.28 	lower expense and no-load mutual funds, as those terms are
72.29 	defined by the federal Securities and Exchange Commission,
72.30 	including stock funds, bond funds, and balanced funds.  Other
72.31 	investment products or combination of investment products which
72.32 	may be included are:
72.33 	(1) savings accounts at federally insured financial
72.34 	institutions;
72.35 	(2) life insurance contracts, fixed and variable annuity
72.36 	contracts from companies that are subject to regulation by the
73.1 	commerce commissioner;
73.2 	(3) investment options from open-ended investment companies
73.3 	registered under the federal Investment Company Act of 1940,
73.4 	United States Code, title 15, sections 80a-1 to 80a-64;
73.5 	(4) investment options from a firm that is a registered
73.6 	investment advisor under the federal Investment Advisers Act of
73.7 	1940, United States Code, title 15, sections 80b-1 to 80b-21;
73.8 	and
73.9 	(5) investment options of a bank as defined in United
73.10 	States Code, title 15, section 80b-2, subsection (a), paragraph
73.11 	2, or a bank holding company as defined in the Bank Holding
73.12 	Company Act of 1956, United States Code, title 12, section 1841,
73.13 	subsection (a), paragraph (1).

73.14 	Sec. 2. EFFECTIVE DATE.
 73.15 	Section 1 is effective the day following final enactment.

73.16 	ARTICLE 10
73.17 	SUPPLEMENTAL RETIREMENT PLANS

73.18 	Section 1. Minnesota Statutes 2004, section 356.24,
73.19 	subdivision 1, is amended to read:
73.20 		Subdivision 1.Restriction; exceptions.  It is unlawful
73.21 	for a school district or other governmental subdivision or state
73.22 	agency to levy taxes for, or to contribute public funds to a
73.23 	supplemental pension or deferred compensation plan that is
73.24 	established, maintained, and operated in addition to a primary
73.25 	pension program for the benefit of the governmental subdivision
73.26 	employees other than:
73.27 	(1) to a supplemental pension plan that was established,
73.28 	maintained, and operated before May 6, 1971;
73.29 	(2) to a plan that provides solely for group health,
73.30 	hospital, disability, or death benefits;
73.31 	(3) to the individual retirement account plan established
73.32 	by chapter 354B;
73.33 	(4) to a plan that provides solely for severance pay under
73.34 	section 465.72 to a retiring or terminating employee;
73.35 	(5) for employees other than personnel employed by the
73.36 	Board of Trustees of the Minnesota State Colleges and
74.1 	Universities and covered under the Higher Education Supplemental
74.2 	Retirement Plan under chapter 354C, if the supplemental plan
74.3 	coverage is provided for in a personnel policy of the public
74.4 	employer or in the collective bargaining agreement between the
74.5 	public employer and the exclusive representative of public
74.6 	employees in an appropriate unit, in an amount matching employee
74.7 	contributions on a dollar for dollar basis, but not to exceed an
74.8 	employer contribution of $2,000 a year per employee;
74.9 	(i) to the state of Minnesota deferred compensation plan
74.10 	under section 352.96; or
74.11 	(ii) in payment of the applicable portion of the
74.12 	contribution made to any investment eligible under section
74.13 	403(b) of the Internal Revenue Code, if the employing unit has
74.14 	complied with any applicable pension plan provisions of the
74.15 	Internal Revenue Code with respect to the tax-sheltered annuity
74.16 	program during the preceding calendar year;
74.17 	(6) for personnel employed by the Board of Trustees of the
74.18 	Minnesota State Colleges and Universities and not covered by
74.19 	clause (5), to the supplemental retirement plan under chapter
74.20 	354C, if the supplemental plan coverage is provided for in a
74.21 	personnel policy or in the collective bargaining agreement of
74.22 	the public employer with the exclusive representative of the
74.23 	covered employees in an appropriate unit, in an amount matching
74.24 	employee contributions on a dollar for dollar basis, but not to
74.25 	exceed an employer contribution of $2,700 a year for each
74.26 	employee;
74.27 	(7) to a supplemental plan or to a governmental trust to
74.28 	save for postretirement health care expenses qualified for
74.29 	tax-preferred treatment under the Internal Revenue Code, if the
74.30 	supplemental plan coverage is provided for in a personnel policy
74.31 	or in the collective bargaining agreement of a public employer
74.32 	with the exclusive representative of the covered employees in an
74.33 	appropriate unit;
74.34 	(8) to the laborer's national industrial pension fund or to
74.35 	a laborer's local pension fund for the employees of a
74.36 	governmental subdivision who are covered by a collective
75.1 	bargaining agreement that provides for coverage by that fund and
75.2 	that sets forth a fund contribution rate, but not to exceed an
75.3 	employer contribution of $2,000 $5,000 per year per employee;
75.4 	(9) to the plumbers' and pipefitters' national pension fund
75.5 	or to a plumbers' and pipefitters' local pension fund for the
75.6 	employees of a governmental subdivision who are covered by a
75.7 	collective bargaining agreement that provides for coverage by
75.8 	that fund and that sets forth a fund contribution rate, but not
75.9 	to exceed an employer contribution of $2,000 $5,000 per year per
75.10 	employee;
75.11 	(10) to the international union of operating engineers
75.12 	pension fund for the employees of a governmental subdivision who
75.13 	are covered by a collective bargaining agreement that provides
75.14 	for coverage by that fund and that sets forth a fund
75.15 	contribution rate, but not to exceed an employer contribution of
75.16 	$2,000 $5,000 per year per employee; or
75.17 	(11) to a supplemental plan organized and operated under
75.18 	the federal Internal Revenue Code, as amended, that is wholly
75.19 	and solely funded by the employee's accumulated sick leave,
75.20 	accumulated vacation leave, and accumulated severance pay at the
75.21 	date of retirement or the termination of active employment.

75.22 	Sec. 2. EFFECTIVE DATE.
 75.23 	Section 1 is effective the day following final enactment.

75.24 	ARTICLE 11
75.25 	VOLUNTEER FIREFIGHTER RELIEF
75.26 	ASSOCIATION CHANGES

75.27 	Section 1. Minnesota Statutes 2004, section 69.051,
75.28 	subdivision 1, is amended to read:
75.29 		Subdivision 1.Financial report and audit.  The board of
75.30 	each salaried firefighters relief association, police relief
75.31 	association, and volunteer firefighters relief association as
75.32 	defined in section 424A.001, subdivision 4, with assets of at
75.33 	least $200,000 or liabilities of at least $200,000 in the prior
75.34 	year or in any previous year, according to the most recent 
75.35 	applicable actuarial valuation or financial report if no
75.36 	valuation is required, shall:
76.1 	(1) prepare a financial report covering the special and
76.2 	general funds of the relief association for the preceding fiscal
76.3 	year on a form prescribed by the state auditor.  The financial
76.4 	report shall must contain financial statements and disclosures
76.5 	which present the true financial condition of the relief
76.6 	association and the results of relief association operations in
76.7 	conformity with generally accepted accounting principles and in
76.8 	compliance with the regulatory, financing and funding provisions
76.9 	of this chapter and any other applicable laws.  The financial
76.10 	report shall must be countersigned by the municipal clerk or
76.11 	clerk-treasurer of the municipality in which the relief
76.12 	association is located if the relief association is a
76.13 	firefighters relief association which is directly associated
76.14 	with a municipal fire department or is a police relief
76.15 	association, or countersigned by the secretary of the
76.16 	independent nonprofit firefighting corporation and by the
76.17 	municipal clerk or clerk-treasurer of the largest municipality
76.18 	in population which contracts with the independent nonprofit
76.19 	firefighting corporation if the volunteer firefighter relief
76.20 	association is a subsidiary of an independent nonprofit
76.21 	firefighting corporation;
76.22 	(2) file the financial report in its office for public
76.23 	inspection and present it to the city council after the close of
76.24 	the fiscal year.  One copy of the financial report shall must be
76.25 	furnished to the state auditor after the close of the fiscal
76.26 	year; and
76.27 	(3) submit to the state auditor audited financial
76.28 	statements which have been attested to by a certified public
76.29 	accountant, public accountant, or the state auditor within 180
76.30 	days after the close of the fiscal year.  The state auditor may
76.31 	accept this report in lieu of the report required in clause (2).

76.32 	Sec. 2. Minnesota Statutes 2004, section 69.051,
76.33 	subdivision 1a, is amended to read:
76.34 		Subd. 1a.Financial statement.  (a) The board of each
76.35 	volunteer firefighters relief association, as defined in section
76.36 	424A.001, subdivision 4, with assets of less than $200,000 and
77.1 	liabilities less than $200,000, according to the most recent
77.2 	financial report, shall that is not required to file a financial
77.3 	report and audit under subdivision 1 must prepare a detailed
77.4 	statement of the financial affairs for the preceding fiscal year
77.5 	of the relief association's special and general funds in the
77.6 	style and form prescribed by the state auditor.  The detailed
77.7 	statement must show the sources and amounts of all money
77.8 	received; all disbursements, accounts payable and accounts
77.9 	receivable; the amount of money remaining in the treasury; total
77.10 	assets including a listing of all investments; the accrued
77.11 	liabilities; and all items necessary to show accurately the
77.12 	revenues and expenditures and financial position of the relief
77.13 	association.
77.14 	(b) The detailed financial statement required under
77.15 	paragraph (a) must be certified by an independent public
77.16 	accountant or auditor or by the auditor or accountant who
77.17 	regularly examines or audits the financial transactions of the
77.18 	municipality.  In addition to certifying the financial condition
77.19 	of the special and general funds of the relief association, the
77.20 	accountant or auditor conducting the examination shall give an
77.21 	opinion as to the condition of the special and general funds of
77.22 	the relief association, and shall comment upon any exceptions to
77.23 	the report.  The independent accountant or auditor shall must 
77.24 	have at least five years of public accounting, auditing, or
77.25 	similar experience, and shall must not be an active, inactive,
77.26 	or retired member of the relief association or the fire or
77.27 	police department.
77.28 	(c) The detailed statement required under paragraph (a)
77.29 	must be countersigned by the municipal clerk or clerk-treasurer
77.30 	of the municipality, or, where applicable, by the secretary of
77.31 	the independent nonprofit firefighting corporation and by the
77.32 	municipal clerk or clerk-treasurer of the largest municipality
77.33 	in population which contracts with the independent nonprofit
77.34 	firefighting corporation if the relief association is a
77.35 	subsidiary of an independent nonprofit firefighting corporation.
77.36 	(d) The volunteer firefighters' relief association board
78.1 	must file the detailed statement required under paragraph (a) in
78.2 	the relief association office for public inspection and present
78.3 	it to the city council within 45 days after the close of the
78.4 	fiscal year, and must submit a copy of the detailed statement to
78.5 	the state auditor within 90 days of the close of the fiscal year.

78.6 	Sec. 3. Minnesota Statutes 2004, section 69.771, is
78.7 	amended to read:
78.8 	69.771 VOLUNTEER FIREFIGHTERS' RELIEF ASSOCIATION
78.9 	FINANCING GUIDELINES ACT; APPLICATION.
78.10 		Subdivision 1.Covered relief associations. The
78.11 	applicable provisions of sections 69.771 to 69.776shall apply
78.12 	to any firefighters' relief association other than a relief
78.13 	association enumerated in section 69.77, subdivision 1a, which
78.14 	is organized under any laws of this state, which is composed of
78.15 	volunteer firefighters or is composed partially of volunteer
78.16 	firefighters and partially of salaried firefighters with
78.17 	retirement coverage provided by the public employees police and
78.18 	fire fund and which, in either case,operates subject to the
78.19 	service pension minimum requirements for entitlement and
78.20 	maximums contained in section 424A.02, or subject to a special
78.21 	law modifying those requirements or maximums.
78.22 		Subd. 2.Authorized employer support for a relief
78.23 	association. Notwithstanding any law to the contrary, a
78.24 	municipality may lawfully contribute public funds, including the
78.25 	transfer of any applicable fire state aid, or may levy property
78.26 	taxes for the support of a firefighters' relief association
78.27 	specified in subdivision 1, however organized, which provides
78.28 	retirement coverage or pays a service pension to retired
78.29 	firefighter or a retirement benefit to a disabled firefighter or
78.30 	a surviving dependent of either an active or retired firefighter
78.31 	for the operation and maintenance of the relief association only
78.32 	if the municipality and the relief association both comply with
78.33 	the applicable provisions of sections 69.771 to 69.776.
78.34 		Subd. 3.Remedy for noncompliance; determination.
 78.35 	Any (a) A municipality in which there exists a firefighters'
78.36 	relief association as specified in subdivision 1 which does not
79.1 	comply with the applicable provisions of sections 69.771 to
79.2 	69.776 or the provisions of any applicable special law relating
79.3 	to the funding or financing of the association shall does not
79.4 	qualify initially to receive, or be and is not entitled
79.5 	subsequently to retain, fire state aid pursuant to under 
79.6 	sections 69.011 to 69.051 until the reason for the 
79.7 	disqualification specified by the state auditor is remedied,
79.8 	whereupon the municipality or relief association, if otherwise
79.9 	qualified, shall be is entitled to again receive fire state aid
79.10 	for the year occurring immediately subsequent to the year in
79.11 	which the disqualification is remedied.
79.12 	(b) The state auditor shall determine if a municipality to
79.13 	which a firefighters' relief association is directly associated
79.14 	or a firefighters' relief association fails to comply with the
79.15 	provisions of sections 69.771 to 69.776 or the funding or
79.16 	financing provisions of any applicable special law based upon
79.17 	the information contained in the annual financial report of the
79.18 	firefighters' relief association required pursuant to under 
79.19 	section 69.051., the actuarial valuation of the relief
79.20 	association, if applicable, the relief association officers'
79.21 	financial requirements of the relief association and minimum
79.22 	municipal obligation determination documentation under section
79.23 	69.772, subdivisions 3 and 4; 69.773, subdivisions 4 and 5; or
79.24 	69.774, subdivision 2, if requested to be filed by the state
79.25 	auditor, the applicable municipal or nonprofit firefighting
79.26 	corporation budget, if requested to be filed by the state
79.27 	auditor, and any other relevant documents or reports obtained by
79.28 	the state auditor.
79.29 	(c) The municipality or nonprofit firefighting corporation
79.30 	and the associated relief association are not eligible to
79.31 	receive or to retain fire state aid if:
79.32 	(1) the relief association fails to prepare or to file the
79.33 	financial report or financial statement under section 69.051;
79.34 	(2) the relief association treasurer is not bonded in the
79.35 	manner and in the amount required by section 69.051, subdivision
79.36 	2;
80.1 	(3) the relief association officers fail to determine or
80.2 	improperly determine the accrued liability and the annual
80.3 	accruing liability of the relief association under section
80.4 	69.772, subdivisions 2, 2a, and 3, paragraph (c), clause (2), if
80.5 	applicable;
80.6 	(4) if applicable, the relief association officers fail to
80.7 	obtain and file a required actuarial valuation or the officers
80.8 	file an actuarial valuation that does not contain the special
80.9 	fund actuarial liability calculated under the entry age normal
80.10 	actuarial cost method, the special fund current assets, the
80.11 	special fund unfunded actuarial accrued liability, the special
80.12 	fund normal cost under the entry age normal actuarial cost
80.13 	method, the amortization requirement for the special fund
80.14 	unfunded actuarial accrued liability by the applicable target
80.15 	date, a summary of the applicable benefit plan, a summary of the
80.16 	membership of the relief association, a summary of the actuarial
80.17 	assumptions used in preparing the valuation, and a signed
80.18 	statement by the actuary attesting to its results and certifying
80.19 	to the qualifications of the actuary as an approved actuary
80.20 	under section 356.215, subdivision 1, paragraph (c);
80.21 	(5) the municipality failed to provide a municipal
80.22 	contribution, or the nonprofit firefighting corporation failed
80.23 	to provide a corporate contribution, in the amount equal to the
80.24 	minimum municipal obligation if the relief association is
80.25 	governed under section 69.772, or the amount necessary, when
80.26 	added to the fire state aid actually received in the plan year
80.27 	in question, to at least equal in total the calculated annual
80.28 	financial requirements of the special fund of the relief
80.29 	association if the relief association is governed under section
80.30 	69.773, and, if the municipal or corporate contribution is
80.31 	deficient, the municipality failed to include the minimum
80.32 	municipal obligation certified under section 69.772, subdivision
80.33 	3, or 69.773, subdivision 5, in its budget and tax levy or the
80.34 	nonprofit firefighting corporation failed to include the minimum
80.35 	corporate obligation certified under section 69.774, subdivision
80.36 	2, in the corporate budget;
81.1 	(6) the relief association did not receive municipal
81.2 	ratification for the most recent plan amendment when municipal
81.3 	ratification was required under section 69.772, subdivision 6;
81.4 	69.773, subdivision 6; or 424A.02, subdivision 10;
81.5 	(7) the relief association invested special fund assets in
81.6 	an investment security that is not authorized under section
81.7 	69.775;
81.8 	(8) the relief association had an administrative expense
81.9 	that is not authorized under section 69.80 or 424A.05,
81.10 	subdivision 3, or the municipality had an expenditure that is
81.11 	not authorized under section 424A.08;
81.12 	(9) the relief association officers fail to provide a
81.13 	complete and accurate public pension plan investment portfolio
81.14 	and performance disclosure under section 356.219;
81.15 	(10) the relief association fails to obtain the
81.16 	acknowledgment from a broker of the statement of investment
81.17 	restrictions under section 356A.06, subdivision 8b;
81.18 	(11) the relief association officers permitted to occur a
81.19 	prohibited transaction under section 356A.06, subdivision 9, or
81.20 	424A.001, subdivision 7, or failed to undertake correction of a
81.21 	prohibited transaction that did occur; or 
81.22 	(12) the relief association pays a defined benefit service
81.23 	pension in an amount that is in excess of the applicable service
81.24 	pension maximum under section 424A.02, subdivision 3.

81.25 	Sec. 4. Minnesota Statutes 2004, section 69.772,
81.26 	subdivision 3, is amended to read:
81.27 		Subd. 3.Financial requirements of relief association;
81.28 	minimum obligation of municipality. (a) During the month of
81.29 	July, the officers of the relief association shall determine the
81.30 	overall funding balance of the special fund for the current
81.31 	calendar year, the financial requirements of the special fund
81.32 	for the following calendar year and the minimum obligation of
81.33 	the municipality with respect to the special fund for the
81.34 	following calendar year in accordance with the requirements of
81.35 	this subdivision.
81.36 	(1) (b) The overall funding balance of the special fund for
82.1 	the current calendar year shall must be determined in the
82.2 	following manner:
82.3 	(a) (1) The total accrued liability of the special fund for
82.4 	all active and deferred members of the relief association as of
82.5 	December 31 of the current year shall must be calculated
82.6 	pursuant to under subdivisions 2 and 2a, if applicable.
82.7 	(b) (2) The total present assets of the special fund
82.8 	projected to December 31 of the current year, including receipts
82.9 	by and disbursements from the special fund anticipated to occur
82.10 	on or before December 31 shall , must be calculated.  To the
82.11 	extent possible, for those assets for which a market value is
82.12 	readily ascertainable, the current market value as of the date
82.13 	of the calculation for those assets shall must be utilized in
82.14 	making this calculation.  For any asset for which no market
82.15 	value is readily ascertainable, the cost value or the book
82.16 	value, whichever is applicable, shall must be utilized in making
82.17 	this calculation.
82.18 	(c) (3) The amount of the total present assets of the
82.19 	special fund calculated pursuant to under clause (b) shall (2)
82.20 	must be subtracted from the amount of the total accrued
82.21 	liability of the special fund calculated pursuant to under 
82.22 	clause (a) (1).  If the amount of total present assets exceeds
82.23 	the amount of the total accrued liability, then the special fund
82.24 	shall be is considered to have a surplus over full funding.  If
82.25 	the amount of the total present assets is less than the amount
82.26 	of the total accrued liability, then the special fund shall be 
82.27 	is considered to have a deficit from full funding.  If the
82.28 	amount of total present assets is equal to the amount of the
82.29 	total accrued liability, then the special fund shall be is 
82.30 	considered to be fully funded.
82.31 	(2) (c) The financial requirements of the special fund for
82.32 	the following calendar year shall must be determined in the
82.33 	following manner:
82.34 	(a) (1) The total accrued liability of the special fund for
82.35 	all active and deferred members of the relief association as of
82.36 	December 31 of the calendar year next following the current
83.1 	calendar year shall must be calculated pursuant to under 
83.2 	subdivisions 2 and 2a, if applicable.
83.3 	(b) (2) The increase in the total accrued liability of the
83.4 	special fund for the following calendar year over the total
83.5 	accrued liability of the special fund for the current year shall 
83.6 	must be calculated.
83.7 	(c) (3) The amount of anticipated future administrative
83.8 	expenses of the special fund shall must be calculated by
83.9 	multiplying the dollar amount of the administrative expenses of
83.10 	the special fund for the most recent prior calendar year by the
83.11 	factor of 1.035.
83.12 	(d) (4) If the special fund is fully funded, the financial
83.13 	requirement requirements of the special fund for the following
83.14 	calendar year shall be are the figure which represents the
83.15 	increase in the total accrued liability of the special fund as 
83.16 	amounts calculated pursuant to subclause (b) under clauses (2)
83.17 	and (3).
83.18 	(e) (5) If the special fund has a deficit from full
83.19 	funding, the financial requirements of the special fund for the
83.20 	following calendar year shall be are the financial requirements
83.21 	of the special fund calculated as though the special fund were
83.22 	fully funded pursuant to subclause (d) under clause (4) plus an
83.23 	amount equal to one-tenth of the original amount of the deficit
83.24 	from full funding of the special fund as determined pursuant to
83.25 	this section for the calendar year 1971 until that deficit from
83.26 	full funding is fully retired, and plus an amount equal to
83.27 	one-tenth of the increase in the deficit from full funding of
83.28 	the special fund under clause (2) resulting either from an
83.29 	increase in the amount of the service pension accruing after
83.30 	December 31, 1971 occurring in the last ten years or from a net
83.31 	annual investment loss occurring during the last ten years until
83.32 	each increase in the deficit from full funding is fully
83.33 	retired. The annual amortization contribution under this clause
83.34 	may not exceed the amount of the deficit from full funding.
83.35 	(f) (6) If the special fund has a surplus over full
83.36 	funding, the financial requirements of the special fund for the
84.1 	following calendar year shall be are the financial requirements
84.2 	of the special fund calculated as though the special fund were
84.3 	fully funded pursuant to subclause (d) under clause (4) reduced
84.4 	by an amount equal to one-tenth of the amount of the surplus
84.5 	over full funding of the special fund.
84.6 	(3) (d) The minimum obligation of the municipality with
84.7 	respect to the special fund shall be is the financial
84.8 	requirements of the special fund reduced by the amount of any
84.9 	fire state aid payable pursuant to under sections 69.011 to
84.10 	69.051 reasonably anticipated to be received by the municipality
84.11 	for transmittal to the special fund during the following
84.12 	calendar year, an amount of interest on the assets of the
84.13 	special fund projected to the beginning of the following
84.14 	calendar year calculated at the rate of five percent per annum,
84.15 	and the amount of any anticipated contributions to the special
84.16 	fund required by the relief association bylaws from the active 
84.17 	members of the relief association reasonably anticipated to be
84.18 	received during the following calendar year. A reasonable
84.19 	amount of anticipated fire state aid is an amount that does not
84.20 	exceed the fire state aid actually received in the prior year
84.21 	multiplied by the factor 1.035.

84.22 	Sec. 5. Minnesota Statutes 2004, section 69.772,
84.23 	subdivision 4, is amended to read:
84.24 		Subd. 4.Certification of financial requirements and
84.25 	minimum municipal obligation; levy. (a) The officers of the
84.26 	relief association shall certify the financial requirements of
84.27 	the special fund of the relief association and the minimum
84.28 	obligation of the municipality with respect to the special fund
84.29 	of the relief association as determined pursuant to under 
84.30 	subdivision 3 to the governing body of the municipality on or
84.31 	before August 1 of each year. The financial requirements of the
84.32 	relief association and the minimum municipal obligation must be
84.33 	included in the financial report or financial statement under
84.34 	section 69.051.
84.35 	(b) The municipality shall provide for at least the minimum
84.36 	obligation of the municipality with respect to the special fund
85.1 	of the relief association by tax levy or from any other source
85.2 	of public revenue.
85.3 	(c) The municipality may levy taxes for the payment of the
85.4 	minimum municipal obligation without any limitation as to rate
85.5 	or amount and irrespective of any limitations imposed by other
85.6 	provisions of law upon the rate or amount of taxation until the
85.7 	balance of the special fund or any fund of the relief
85.8 	association has attained a specified level.  In addition, any
85.9 	taxes levied pursuant to under this section shall must not cause
85.10 	the amount or rate of any other taxes levied in that year or to
85.11 	be levied in a subsequent year by the municipality which are
85.12 	subject to a limitation as to rate or amount to be reduced.
85.13 	(d) If the municipality does not include the full amount of
85.14 	the minimum municipal obligations in its levy for any year, the
85.15 	officers of the relief association shall certify that amount to
85.16 	the county auditor, who shall spread a levy in the amount of the
85.17 	certified minimum municipal obligation on the taxable property
85.18 	of the municipality.
85.19 	(e) If the state auditor determines that a municipal
85.20 	contribution actually made in a plan year was insufficient under
85.21 	section 69.771, subdivision 3, paragraph (c), clause (5), the
85.22 	state auditor may request a copy of the certifications under
85.23 	this subdivision from the relief association or from the city.
85.24 	The relief association or the city, whichever applies, must
85.25 	provide the certifications within 14 days of the date of the
85.26 	request from the state auditor.

85.27 	Sec. 6. Minnesota Statutes 2004, section 69.773,
85.28 	subdivision 4, is amended to read:
85.29 		Subd. 4.Financial requirements of special fund. Prior
85.30 	to (a) On or before August 1 of each year, the officers of the
85.31 	relief association shall determine the financial requirements of
85.32 	the special fund of the relief association in accordance with
85.33 	the requirements of this subdivision.
85.34 	(b) The financial requirements of the relief
85.35 	association shall must be based on the most recent actuarial
85.36 	valuation of the special fund prepared in accordance with
86.1 	subdivision 2.  If the relief association has an unfunded
86.2 	actuarial accrued liability as reported in the most recent
86.3 	actuarial valuation, the financial requirements shall must be
86.4 	determined by adding the figures calculated pursuant to under
86.5 	paragraph (d),clauses (a) (1), (b) (2), and (c) (3).  If
86.6 	the relief association does not have an unfunded actuarial
86.7 	accrued liability as reported in the most recent actuarial
86.8 	valuation, the financial requirements shall must be an amount
86.9 	equal to the figure calculated pursuant to under paragraph (d),
86.10 	clauses (a) (1) and (b) (2), reduced by an amount equal to
86.11 	one-tenth of the amount of any assets in excess of the actuarial
86.12 	accrued liability of the relief association.
86.13 	(c) The determination of whether or not the relief
86.14 	association has an unfunded actuarial accrued liability
86.15 	shall must be based on the current market value of assets for
86.16 	which a market value is readily ascertainable and the cost or
86.17 	book value, whichever is applicable, for assets for which no
86.18 	market value is readily ascertainable.
86.19 	(a) (d) The components of the financial requirements of the
86.20 	relief association are the following:
86.21 	(1) The normal level cost requirement for the following
86.22 	year, expressed as a dollar amount, shall be is the figure for
86.23 	the normal level cost of the relief association as reported in
86.24 	the actuarial valuation.
86.25 	(b) (2) The amount of anticipated future administrative
86.26 	expenses of the special fund shall must be calculated by
86.27 	multiplying the dollar amount of the administrative expenses of
86.28 	the special fund for the most recent prior calendar year by the
86.29 	factor of 1.035.
86.30 	(c) (3) The amortization contribution requirement to retire
86.31 	the current unfunded actuarial accrued liability by the
86.32 	established date for full funding shall be is the figure for the
86.33 	amortization contribution as reported in the actuarial
86.34 	valuation.  If there has not been a change in the actuarial
86.35 	assumptions used for calculating the actuarial accrued liability
86.36 	of the special fund, a change in the bylaws of the relief
87.1 	association governing the service pensions, retirement benefits,
87.2 	or both,payable from the special fund,or a change in the
87.3 	actuarial cost method used to value all or a portion of the
87.4 	special fund which change or changes, which by themselves,
87.5 	without inclusion of any other items of increase or decrease,
87.6 	produce a net increase in the unfunded actuarial accrued
87.7 	liability of the special fund since December 31, 1970, the
87.8 	established date for full funding shall be is the December 31,
87.9 	1990 occurring ten years later.  If there has been a change in
87.10 	the actuarial assumptions used for calculating the actuarial
87.11 	accrued liability of the special fund, a change in the bylaws of
87.12 	the relief association governing the service pensions,
87.13 	retirement benefits, or both payable from the special fund or a
87.14 	change in the actuarial cost method used to value all or a
87.15 	portion of the special fund and the change or changes, by
87.16 	themselves and without inclusion of any other items of increase
87.17 	or decrease, produce a net increase in the unfunded actuarial
87.18 	accrued liability of the special fund since December 31, 1970,
87.19 	but prior to January 1, 1979 within the past 20 years, the
87.20 	established date for full funding shall be December 31, 1998,
87.21 	and if there has been a change since December 31, 1978, the
87.22 	established date for full funding shall must be determined using
87.23 	the following procedure:
87.24 	(i) the unfunded actuarial accrued liability of the special
87.25 	fund attributable to experience losses that have occurred since
87.26 	the most recent prior actuarial valuation must be determined and
87.27 	the level annual dollar contribution needed to amortize the
87.28 	experience loss over a period of ten years ending on the
87.29 	December 31 occurring ten years later must be calculated;
87.30 	(ii) the unfunded actuarial accrued liability of the
87.31 	special fund shall must be determined in accordance with the
87.32 	provisions governing service pensions, retirement benefits, and
87.33 	actuarial assumptions in effect before an applicable change;
87.34 	(ii) (iii) the level annual dollar contribution needed to
87.35 	amortize this unfunded actuarial accrued liability amount by the
87.36 	date for full funding in effect prior to before the change shall 
88.1 	must be calculated using the interest assumption specified in
88.2 	section 356.215, subdivision 8, in effect before any applicable
88.3 	change;
88.4 	(iii) (iv) the unfunded actuarial accrued liability of the
88.5 	special fund shall must be determined in accordance with any new
88.6 	provisions governing service pensions, retirement benefits, and
88.7 	actuarial assumptions and the remaining provisions governing
88.8 	service pensions, retirement benefits, and actuarial assumptions
88.9 	in effect before an applicable change;
88.10 	(iv) (v) the level annual dollar contribution needed to
88.11 	amortize the difference between the unfunded actuarial accrued
88.12 	liability amount calculated pursuant to subclause (i) under item
88.13 	(ii) and the unfunded actuarial accrued liability amount
88.14 	calculated pursuant to subclause (iii) under item (iv) over a
88.15 	period of 20 years starting December 31 of the year in which the
88.16 	change is effective shall must be calculated using the interest
88.17 	assumption specified in section 356.215, subdivision 8, in
88.18 	effect after any applicable change;
88.19 	(v) (vi) the annual amortization contribution calculated
88.20 	pursuant to subclause (iv) shall under item (v) must be added to
88.21 	the annual amortization contribution calculated pursuant to
88.22 	subclause (ii) under items (i) and (iii);
88.23 	(vi) (vii) the period in which the unfunded actuarial
88.24 	accrued liability amount determined in subclause (iii) item (iv) 
88.25 	will be amortized by the total annual amortization contribution
88.26 	computed pursuant to subclause (v) shall under item (vi) must be
88.27 	calculated using the interest assumption specified in section
88.28 	356.215, subdivision 8, in effect after any applicable change,
88.29 	rounded to the nearest integral number of years, but which shall 
88.30 	must not exceed a period of 20 years from the end of the year in
88.31 	which the determination of the date for full funding using this
88.32 	procedure is made and which shall must not be less than the
88.33 	period of years beginning in the year in which the determination
88.34 	of the date for full funding using this procedure is made and
88.35 	ending by the date for full funding in effect before the change;
88.36 	(vii) (viii) the period determined pursuant to subclause
89.1 	(vi) shall under item (vii) must be added to the date as of
89.2 	which the actuarial valuation was prepared and the resulting
89.3 	date shall be is the new date for full funding.

89.4 	Sec. 7. Minnesota Statutes 2004, section 69.773,
89.5 	subdivision 5, is amended to read:
89.6 		Subd. 5.Minimum municipal obligation. (a) The officers
89.7 	of the relief association shall determine the minimum obligation
89.8 	of the municipality with respect to the special fund of the
89.9 	relief association for the following calendar year prior to on
89.10 	or before August 1 of each year in accordance with the
89.11 	requirements of this subdivision.
89.12 	(b) The minimum obligation of the municipality with respect
89.13 	to the special fund shall be is an amount equal to the financial
89.14 	requirements of the special fund of the relief association
89.15 	determined pursuant to under subdivision 4, reduced by the
89.16 	estimated amount of any fire state aid payable pursuant to under 
89.17 	sections 69.011 to 69.051reasonably anticipated to be received
89.18 	by the municipality for transmittal to the special fund of the
89.19 	relief association during the following year and the amount of
89.20 	any anticipated contributions to the special fund required by
89.21 	the relief association bylaws from the active members of the
89.22 	relief association reasonably anticipated to be received during
89.23 	the following calendar year. A reasonable amount of anticipated
89.24 	fire state aid is an amount that does not exceed the fire state
89.25 	aid actually received in the prior year multiplied by the factor
89.26 	1.035.
89.27 	(c) The officers of the relief association shall certify
89.28 	the financial requirements of the special fund of the relief
89.29 	association and the minimum obligation of the municipality with
89.30 	respect to the special fund of the relief association as
89.31 	determined pursuant to under subdivision 4 and this subdivision
89.32 	to the governing body of the municipality by August 1 of each
89.33 	year. The financial requirements of the relief association and
89.34 	the minimum municipal obligation must be included in the
89.35 	financial report or financial statement under section 69.051.
89.36 	(d) The municipality shall provide for at least the minimum
90.1 	obligation of the municipality with respect to the special fund
90.2 	of the relief association by tax levy or from any other source
90.3 	of public revenue.  The municipality may levy taxes for the
90.4 	payment of the minimum municipal obligation without any
90.5 	limitation as to rate or amount and irrespective of any
90.6 	limitations imposed by other provisions of law or charter upon
90.7 	the rate or amount of taxation until the balance of the special
90.8 	fund or any fund of the relief association has attained a
90.9 	specified level.  In addition, any taxes levied pursuant to 
90.10 	under this section shall must not cause the amount or rate of
90.11 	any other taxes levied in that year or to be levied in a
90.12 	subsequent year by the municipality which are subject to a
90.13 	limitation as to rate or amount to be reduced.
90.14 	(e) If the municipality does not include the full amount of
90.15 	the minimum municipal obligation in its levy for any year, the
90.16 	officers of the relief association shall certify that amount to
90.17 	the county auditor, who shall spread a levy in the amount of the
90.18 	minimum municipal obligation on the taxable property of the
90.19 	municipality.
90.20 	(f) If the state auditor determines that a municipal
90.21 	contribution actually made in a plan year was insufficient under
90.22 	section 69.771, subdivision 3, paragraph (c), clause (5), the
90.23 	state auditor may request from the relief association or from
90.24 	the city a copy of the certifications under this subdivision.
90.25 	The relief association or the city, whichever applies, must
90.26 	provide the certifications within 14 days of the date of the
90.27 	request from the state auditor.

90.28 	Sec. 8. Minnesota Statutes 2004, section 69.775, is
90.29 	amended to read:
90.30 	69.775 INVESTMENTS.
90.31 	(a) The special fund assets of the a relief associations 
90.32 	association governed by sections 69.771 to 69.776 must be
90.33 	invested in securities that are authorized investments under
90.34 	section 356A.06, subdivision 6 or 7.
90.35 	(b) Notwithstanding the foregoing, up to 75 percent of the
90.36 	market value of the assets of the special fund, not including
91.1 	any money market mutual funds,may be invested in open-end
91.2 	investment companies registered under the federal Investment
91.3 	Company Act of 1940, if the portfolio investments of the
91.4 	investment companies comply with the type of securities
91.5 	authorized for investment under section 356A.06, subdivision 7.
91.6 	(c) Securities held by the associations before June 2,
91.7 	1989, that do not meet the requirements of this section may be
91.8 	retained after that date if they were proper investments for the
91.9 	association on that date.
91.10 	(d) The governing board of the association may select and
91.11 	appoint investment agencies to act for and in its behalf or may
91.12 	certify special fund assets for investment by the State Board of
91.13 	Investment under section 11A.17.
91.14 	(e) The governing board of the association may certify
91.15 	general fund assets of the relief association for investment by
91.16 	the State Board of Investment in fixed income pools or in a
91.17 	separately managed account at the discretion of the State Board
91.18 	of Investment as provided in section 11A.14.
91.19 	(f) The governing board of the association may select and
91.20 	appoint a qualified private firm to measure management
91.21 	performance and return on investment, and the firm shall use the
91.22 	formula or formulas developed by the state board under section
91.23 	11A.04, clause (11).

91.24 	Sec. 9. Minnesota Statutes 2004, section 356A.06,
91.25 	subdivision 7, is amended to read:
91.26 		Subd. 7.Expanded list of authorized investment
91.27 	securities.  (a)  [AUTHORITY.] Except to the extent otherwise
91.28 	authorized by law or bylaws, a covered pension plan not
91.29 	described by subdivision 6, paragraph (a), may invest its assets
91.30 	only in accordance with this subdivision.
91.31 	(b)  [SECURITIES GENERALLY.] The covered pension plan has
91.32 	the authority to purchase, sell, lend, or exchange the
91.33 	securities specified in paragraphs (c) to (g) (h), including
91.34 	puts and call options and future contracts traded on a contract
91.35 	market regulated by a governmental agency or by a financial
91.36 	institution regulated by a governmental agency.  These
92.1 	securities may be owned as units in commingled trusts that own
92.2 	the securities described in paragraphs (c) to (g) (h).
92.3 	(c)  [GOVERNMENT OBLIGATIONS.] The covered pension plan may
92.4 	invest funds in governmental bonds, notes, bills, mortgages, and
92.5 	other evidences of indebtedness provided the issue is backed by
92.6 	the full faith and credit of the issuer or the issue is rated
92.7 	among the top four quality rating categories by a nationally
92.8 	recognized rating agency.  The obligations in which funds may be
92.9 	invested under this paragraph include guaranteed or insured
92.10 	issues of (1) the United States, its agencies, its
92.11 	instrumentalities, or organizations created and regulated by an
92.12 	act of Congress; (2) Canada and its provinces, provided the
92.13 	principal and interest is payable in United States dollars; (3)
92.14 	the states and their municipalities, political subdivisions,
92.15 	agencies, or instrumentalities; (4) the International Bank for
92.16 	Reconstruction and Development, the Inter-American Development
92.17 	Bank, the Asian Development Bank, the African Development Bank,
92.18 	or any other United States government sponsored organization of
92.19 	which the United States is a member, provided the principal and
92.20 	interest is payable in United States dollars.
92.21 	(d)  [CORPORATE OBLIGATIONS.] The covered pension plan may
92.22 	invest funds in bonds, notes, debentures, transportation
92.23 	equipment obligations, or any other longer term evidences of
92.24 	indebtedness issued or guaranteed by a corporation organized
92.25 	under the laws of the United States or any state thereof, or the
92.26 	Dominion of Canada or any province thereof if they conform to
92.27 	the following provisions:
92.28 	(1) the principal and interest of obligations of
92.29 	corporations incorporated or organized under the laws of the
92.30 	Dominion of Canada or any province thereof must be payable in
92.31 	United States dollars; and
92.32 	(2) obligations must be rated among the top four quality
92.33 	categories by a nationally recognized rating agency.
92.34 	(e)  [OTHER OBLIGATIONS.] (1) The covered pension plan may
92.35 	invest funds in bankers acceptances, certificates of deposit,
92.36 	deposit notes, commercial paper, mortgage participation
93.1 	certificates and pools, asset backed securities, repurchase
93.2 	agreements and reverse repurchase agreements, guaranteed
93.3 	investment contracts, savings accounts, and guaranty fund
93.4 	certificates, surplus notes, or debentures of domestic mutual
93.5 	insurance companies if they conform to the following provisions:
93.6 	(i) bankers acceptances and deposit notes of United States
93.7 	banks are limited to those issued by banks rated in the highest
93.8 	four quality categories by a nationally recognized rating
93.9 	agency;
93.10 	(ii) certificates of deposit are limited to those issued by
93.11 	(A) United States banks and savings institutions that are rated
93.12 	in the highest four quality categories by a nationally
93.13 	recognized rating agency or whose certificates of deposit are
93.14 	fully insured by federal agencies; or (B) credit unions in
93.15 	amounts up to the limit of insurance coverage provided by the
93.16 	National Credit Union Administration;
93.17 	(iii) commercial paper is limited to those issued by United
93.18 	States corporations or their Canadian subsidiaries and rated in
93.19 	the highest two quality categories by a nationally recognized
93.20 	rating agency;
93.21 	(iv) mortgage participation or pass through certificates
93.22 	evidencing interests in pools of first mortgages or trust deeds
93.23 	on improved real estate located in the United States where the
93.24 	loan to value ratio for each loan as calculated in accordance
93.25 	with section 61A.28, subdivision 3, does not exceed 80 percent
93.26 	for fully amortizable residential properties and in all other
93.27 	respects meets the requirements of section 61A.28, subdivision
93.28 	3;
93.29 	(v) collateral for repurchase agreements and reverse
93.30 	repurchase agreements is limited to letters of credit and
93.31 	securities authorized in this section;
93.32 	(vi) guaranteed investment contracts are limited to those
93.33 	issued by insurance companies or banks rated in the top four
93.34 	quality categories by a nationally recognized rating agency or
93.35 	to alternative guaranteed investment contracts where the
93.36 	underlying assets comply with the requirements of this
94.1 	subdivision;
94.2 	(vii) savings accounts are limited to those fully insured
94.3 	by federal agencies; and
94.4 	(viii) asset backed securities must be rated in the top
94.5 	four quality categories by a nationally recognized rating agency.
94.6 	(2) Sections 16A.58, 16C.03, subdivision 4, and 16C.05 do
94.7 	not apply to certificates of deposit and collateralization
94.8 	agreements executed by the covered pension plan under clause
94.9 	(1), item (ii).
94.10 	(3) In addition to investments authorized by clause (1),
94.11 	item (iv), the covered pension plan may purchase from the
94.12 	Minnesota Housing Finance Agency all or any part of a pool of
94.13 	residential mortgages, not in default, that has previously been
94.14 	financed by the issuance of bonds or notes of the agency.  The
94.15 	covered pension plan may also enter into a commitment with the
94.16 	agency, at the time of any issue of bonds or notes, to purchase
94.17 	at a specified future date, not exceeding 12 years from the date
94.18 	of the issue, the amount of mortgage loans then outstanding and
94.19 	not in default that have been made or purchased from the
94.20 	proceeds of the bonds or notes.  The covered pension plan may
94.21 	charge reasonable fees for any such commitment and may agree to
94.22 	purchase the mortgage loans at a price sufficient to produce a
94.23 	yield to the covered pension plan comparable, in its judgment,
94.24 	to the yield available on similar mortgage loans at the date of
94.25 	the bonds or notes.  The covered pension plan may also enter
94.26 	into agreements with the agency for the investment of any
94.27 	portion of the funds of the agency.  The agreement must cover
94.28 	the period of the investment, withdrawal privileges, and any
94.29 	guaranteed rate of return.
94.30 	(f)  [CORPORATE STOCKS.] The covered pension plan may
94.31 	invest funds in stocks or convertible issues of any corporation
94.32 	organized under the laws of the United States or the states
94.33 	thereof, any corporation organized under the laws of the
94.34 	Dominion of Canada or its provinces, or any corporation listed
94.35 	on the New York Stock Exchange or the American Stock Exchange an
94.36 	exchange regulated by an agency of the United States or of the
95.1 	Canadian national government, if they conform to the following
95.2 	provisions:
95.3 	(1) the aggregate value of corporate stock investments, as
95.4 	adjusted for realized profits and losses, must not exceed 85
95.5 	percent of the market or book value, whichever is less, of a
95.6 	fund, less the aggregate value of investments according to
95.7 	subdivision 6 paragraph (h);
95.8 	(2) investments must not exceed five percent of the total
95.9 	outstanding shares of any one corporation.
95.10 	(g)  [EXCHANGE TRADED FUNDS.] The covered pension plan may
95.11 	invest funds in exchange traded funds, subject to the maximums,
95.12 	the requirements, and the limitations set forth in paragraph
95.13 	(d), (e), (f), or (h), whichever applies.
95.14 	(h) [OTHER INVESTMENTS.] (1) In addition to the
95.15 	investments authorized in paragraphs (b) to (f) (g), and subject
95.16 	to the provisions in clause (2), the covered pension plan may
95.17 	invest funds in:
95.18 	(i) venture capital investment businesses through
95.19 	participation in limited partnerships and corporations;
95.20 	(ii) real estate ownership interests or loans secured by
95.21 	mortgages or deeds of trust through investment in limited
95.22 	partnerships, bank sponsored collective funds, trusts, and
95.23 	insurance company commingled accounts, including separate
95.24 	accounts;
95.25 	(iii) regional and mutual funds through bank sponsored
95.26 	collective funds and open-end investment companies registered
95.27 	under the Federal Investment Company Act of 1940;
95.28 	(iv) resource investments through limited partnerships,
95.29 	private placements, and corporations; and
95.30 	(v) international securities.
95.31 	(2) The investments authorized in clause (1) must conform
95.32 	to the following provisions:
95.33 	(i) the aggregate value of all investments made according
95.34 	to clause (1) may not exceed 35 percent of the market value of
95.35 	the fund for which the covered pension plan is investing;
95.36 	(ii) there must be at least four unrelated owners of the
96.1 	investment other than the state board for investments made under
96.2 	clause (1), item (i), (ii), (iii), or (iv);
96.3 	(iii) covered pension plan participation in an investment
96.4 	vehicle is limited to 20 percent thereof for investments made
96.5 	under clause (1), item (i), (ii), (iii), or (iv); and
96.6 	(iv) covered pension plan participation in a limited
96.7 	partnership does not include a general partnership interest or
96.8 	other interest involving general liability.  The covered pension
96.9 	plan may not engage in any activity as a limited partner which
96.10 	creates general liability.

96.11 	Sec. 10. Minnesota Statutes 2004, section 424A.02,
96.12 	subdivision 3, is amended to read:
96.13 		Subd. 3.Flexible service pension maximums.  (a) Annually
96.14 	on or before August 1 as part of the certification of the
96.15 	financial requirements and minimum municipal obligation
96.16 	determined under section 69.772, subdivision 4, or 69.773,
96.17 	subdivision 5, as applicable, the secretary or some other
96.18 	official of the relief association designated in the bylaws of
96.19 	each relief association shall calculate and certify to the
96.20 	governing body of the applicable qualified municipality the
96.21 	average amount of available financing per active covered
96.22 	firefighter for the most recent three-year period.  The amount
96.23 	of available financing shall include any amounts of fire state
96.24 	aid received or receivable by the relief association, any
96.25 	amounts of municipal contributions to the relief association
96.26 	raised from levies on real estate or from other available
96.27 	revenue sources exclusive of fire state aid, and one-tenth of
96.28 	the amount of assets in excess of the accrued liabilities of the
96.29 	relief association calculated under section 69.772, subdivision
96.30 	2; 69.773, subdivisions 2 and 4; or 69.774, subdivision 2, if
96.31 	any.
96.32 	(b) The maximum service pension which the relief
96.33 	association has authority to provide for in its bylaws for
96.34 	payment to a member retiring after the calculation date when the
96.35 	minimum age and service requirements specified in subdivision 1
96.36 	are met must be determined using the table in paragraph (c) or
97.1 	(d), whichever applies.
97.2 	(c) For a relief association where the governing bylaws
97.3 	provide for a monthly service pension to a retiring member, the
97.4 	maximum monthly service pension amount per month for each year
97.5 	of service credited that may be provided for in the bylaws is
97.6 	the greater of the service pension amount provided for in the
97.7 	bylaws on the date of the calculation of the average amount of
97.8 	the available financing per active covered firefighter or the 
97.9 	maximum service pension figure corresponding to the average
97.10 	amount of available financing per active covered firefighter:
97.11 	Minimum Average Amount of      Maximum Service Pension
97.12 	  Available Financing per        Amount Payable per Month
97.13 	       Firefighter               for Each Year of Service
97.14 	$...                            $  .25
97.15 	42 41.50
97.16 	84 81 1.00
97.17 	126 122 1.50
97.18 	168 162 2.00
97.19 	209 203 2.50
97.20 	252 243 3.00
97.21 	294 284 3.50
97.22 	335 324 4.00
97.23 	378 365 4.50
97.24 	420 405 5.00
97.25 	503 486 6.00
97.26 	587 567 7.00
97.27 	672 648 8.00
97.28 	755 729 9.00
97.29 	839 810 10.00
97.30 	923 891 11.00
97.31 	1007 972 12.00
97.32 	1090 1053 13.00
97.33 	1175 1134 14.00
97.34 	1259 1215 15.00
97.35 	1342 1296 16.00
97.36 	1427 1377 17.00
98.1 	1510 1458 18.00
98.2 	1594 1539 19.00
98.3 	1677 1620 20.00
98.4 	1762 1701 21.00
98.5 	1845 1782 22.00
98.6 	1888 1823 22.50
98.7 	1929 1863 23.00
98.8 	2014 1944 24.00
98.9 	2098 2025 25.00
98.10 	2183 2106 26.00
98.11 	2267 2187 27.00
98.12 	2351 2268 28.00
98.13 	2436 2349 29.00
98.14 	2520 2430 30.00
98.15 	2604 2511 31.00
98.16 	2689 2592 32.00
98.17 	2773 2673 33.00
98.18 	2857 2754 34.00
98.19 	2942 2834 35.00
98.20 	3026 2916 36.00
98.21 	3110 2997 37.00
98.22 	3194 3078 38.00
98.23 	3278 3159 39.00
98.24 	3362 3240 40.00
98.25 	3446 3321 41.00
98.26 	3530 3402 42.00
98.27 	3614 3483 43.00
98.28 	3698 3564 44.00
98.29 	3782 3645 45.00
98.30 	3866 3726 46.00
98.31 	3950 3807 47.00
98.32 	4034 3888 48.00
98.33 	4118 3969 49.00
98.34 	4202 4050 50.00
98.35 	4286 4131 51.00
98.36 	4370 4212 52.00
99.1 	Effective beginning December 31, 2003:
99.2 	4454 4293 53.00
99.3 	4538 4374 54.00
99.4 	4622 4455 55.00
99.5 	4706 4536 56.00
99.6 	(d) For a relief association in which the governing bylaws
99.7 	provide for a lump sum service pension to a retiring member, the
99.8 	maximum lump sum service pension amount for each year of service
99.9 	credited that may be provided for in the bylaws is the greater
99.10 	of the service pension amount provided for in the bylaws on the
99.11 	date of the calculation of the average amount of the available
99.12 	financing per active covered firefighter or the maximum service
99.13 	pension figure corresponding to the average amount of available
99.14 	financing per active covered firefighter for the applicable
99.15 	specified period:
99.16 	Minimum Average Amount         Maximum Lump Sum Service
99.17 	 of Available Financing         Pension Amount Payable
99.18 	    per Firefighter             for Each Year of Service
99.19 	$..                              $10
99.20 	         11                               20
99.21 	         16                               30
99.22 	         23                               40
99.23 	         27                               50
99.24 	         32                               60
99.25 	         43                               80
99.26 	         54                              100
99.27 	         65                              120
99.28 	         77                              140
99.29 	         86                              160
99.30 	         97                              180
99.31 	        108                              200
99.32 	        131                              240
99.33 	        151                              280
99.34 	        173                              320
99.35 	        194                              360
99.36 	        216                              400
100.1 	        239                              440
100.2 	        259                              480
100.3 	        281                              520
100.4 	        302                              560
100.5 	        324                              600
100.6 	        347                              640
100.7 	        367                              680
100.8 	        389                              720
100.9 	        410                              760
100.10 	        432                              800
100.11 	        486                              900
100.12 	        540                             1000
100.13 	        594                             1100
100.14 	        648                             1200
100.15 	        702                             1300
100.16 	        756                             1400
100.17 	        810                             1500
100.18 	        864                             1600
100.19 	        918                             1700
100.20 	        972                             1800
100.21 	       1026                             1900
100.22 	       1080                             2000
100.23 	       1134                             2100
100.24 	       1188                             2200
100.25 	       1242                             2300
100.26 	       1296                             2400
100.27 	       1350                             2500
100.28 	       1404                             2600
100.29 	       1458                             2700
100.30 	       1512                             2800
100.31 	       1566                             2900
100.32 	       1620                             3000
100.33 	       1672                             3100
100.34 	       1726                             3200
100.35 	       1753                             3250
100.36 	       1780                             3300
101.1 	       1820                             3375
101.2 	1834                             3400
101.3 	       1888                             3500
101.4 	1942                             3600
101.5 	       1996                             3700
101.6 	       2023                             3750
101.7 	2050                             3800
101.8 	       2104                             3900
101.9 	       2158                             4000
101.10 	2212                             4100
101.11 	       2265                             4200
101.12 	       2319                             4300
101.13 	       2373                             4400
101.14 	       2427                             4500
101.15 	       2481                             4600
101.16 	       2535                             4700
101.17 	       2589                             4800
101.18 	       2643                             4900
101.19 	       2697                             5000
101.20 	       2751                             5100
101.21 	       2805                             5200
101.22 	       2859                             5300
101.23 	       2913                             5400
101.24 	       2967                             5500
101.25 	3021                             5600
101.26 	3075                             5700
101.27 	3129                             5800
101.28 	3183                             5900
101.29 	3237                             6000
101.30 	3291                             6100
101.31 	3345                             6200
101.32 	3399                             6300
101.33 	3453                             6400
101.34 	3507                             6500
101.35 	3561                             6600
101.36 	3615                             6700
102.1 	3669                             6800
102.2 	3723                             6900
102.3 	3777                             7000
102.4 	Effective beginning December 31, 2003:
102.5 	3831                             7100
102.6 	3885                             7200
102.7 	3939                             7300
102.8 	3993                             7400
102.9 	4047                             7500
102.10 	(e) For a relief association in which the governing bylaws
102.11 	provide for a monthly benefit service pension as an alternative
102.12 	form of service pension payment to a lump sum service pension,
102.13 	the maximum service pension amount for each pension payment type
102.14 	must be determined using the applicable table contained in this
102.15 	subdivision.
102.16 	(f) If a relief association establishes a service pension
102.17 	in compliance with the applicable maximum contained in paragraph
102.18 	(c) or (d) and the minimum average amount of available financing
102.19 	per active covered firefighter is subsequently reduced because
102.20 	of a reduction in fire state aid or because of an increase in
102.21 	the number of active firefighters, the relief association may
102.22 	continue to provide the prior service pension amount specified
102.23 	in its bylaws, but may not increase the service pension amount
102.24 	until the minimum average amount of available financing per
102.25 	firefighter under the table in paragraph (c) or (d), whichever
102.26 	applies, permits.
102.27 	(g) No relief association is authorized to provide a
102.28 	service pension in an amount greater than the largest applicable
102.29 	flexible service pension maximum amount even if the amount of
102.30 	available financing per firefighter is greater than the
102.31 	financing amount associated with the largest applicable flexible
102.32 	service pension maximum.

102.33 	Sec. 11. Minnesota Statutes 2004, section 424A.02,
102.34 	subdivision 4, is amended to read:
102.35 		Subd. 4.Defined contribution lump sum service
102.36 	pensions. (a) If the bylaws governing the relief association so
103.1 	provide exclusively, the relief association may pay a defined
103.2 	contribution lump sum service pension in lieu of any defined
103.3 	benefit service pension governed by subdivision 2.
103.4 	(b) An individual account for each firefighter who is a
103.5 	member of the relief association shall must be established.  To
103.6 	each individual active member account shall must be credited a
103.7 	right to an equal share of: (a) (1) any amounts of fire state
103.8 	aid received by the relief association; (b) (2) any amounts of
103.9 	municipal contributions to the relief association raised from
103.10 	levies on real estate or from other available revenue sources
103.11 	exclusive of fire state aid; and (c) (3) any amounts equal to
103.12 	the share of the assets of the special fund to the credit
103.13 	of: (1) (i) any former member who terminated active service
103.14 	with the fire department to which the relief association is
103.15 	associated prior to before meeting the minimum service
103.16 	requirement provided for in subdivision 1 and has not returned
103.17 	to active service with the fire department for a period no
103.18 	shorter than five years; or (2) (ii) any retired member who
103.19 	retired prior to before obtaining a full nonforfeitable interest
103.20 	in the amounts credited to the individual member
103.21 	account pursuant to under subdivision 2 and any applicable
103.22 	provision of the bylaws of the relief association.  In addition,
103.23 	any interest or investment income earned return on the assets of
103.24 	the special fund shall must be credited in proportion to the
103.25 	share of the assets of the special fund to the credit of each
103.26 	individual active member account through the date on which the
103.27 	investment return is recognized by and credited to the special
103.28 	fund.
103.29 	(c) At the time of retirement pursuant to under subdivision
103.30 	1 and any applicable provision of the bylaws of the relief
103.31 	association, a retiring member shall be is entitled to that
103.32 	portion of the assets of the special fund to the credit of the
103.33 	member in the individual member account which is
103.34 	nonforfeitable pursuant to under subdivision 2 and any
103.35 	applicable provision of the bylaws of the relief association
103.36 	based on the number of years of service to the credit of the
104.1 	retiring member.

104.2 	Sec. 12. Minnesota Statutes 2004, section 424A.02,
104.3 	subdivision 7, is amended to read:
104.4 		Subd. 7.Deferred service pensions.  (a) A member of a
104.5 	relief association to which this section applies is entitled to
104.6 	a deferred service pension if the member:
104.7 	(1) has completed the lesser of the minimum period of
104.8 	active service with the fire department specified in the bylaws
104.9 	or 20 years of active service with the fire department;
104.10 	(2) has completed at least five years of active membership
104.11 	in the relief association; and
104.12 	(3) separates from active service and membership before
104.13 	reaching age 50 or the minimum age for retirement and
104.14 	commencement of a service pension specified in the bylaws
104.15 	governing the relief association if that age is greater than age
104.16 	50.
104.17 	(b) The deferred service pension starts is payable when the
104.18 	former member reaches age 50,or the minimum age specified in
104.19 	the bylaws governing the relief association if that age is
104.20 	greater than age 50,and when the former member makes a valid
104.21 	written application.
104.22 	(c) A relief association that provides a lump sum service
104.23 	pension governed by subdivision 3 may, when its governing bylaws
104.24 	so provide, pay interest on the deferred lump sum service
104.25 	pension during the period of deferral.  If provided for in the
104.26 	bylaws, interest must be paid in one of the following manners:
104.27 	(1) at the investment performance rate actually earned on
104.28 	that portion of the assets if the deferred benefit amount is
104.29 	invested by the relief association in a separate account
104.30 	established and maintained by the relief association or if the
104.31 	deferred benefit amount is invested in a separate investment
104.32 	vehicle held by the relief association;
104.33 	(2) at the an interest rate of up to five percent,
104.34 	compounded annually as set by the board of directors and
104.35 	approved as provided in subdivision 10; or
104.36 	(3) at a rate equal to the actual time weighted total rate
105.1 	of return investment performance of the special fund as reported
105.2 	by the Office of the State Auditor under section 356.219, up to
105.3 	five percent, compounded annually, and applied consistently for
105.4 	all deferred service pensioners.
105.5 	(d) A relief association may not use the method provided
105.6 	for in paragraph (c),clause (3), until it has modified its
105.7 	bylaws to be consistent with that clause.
105.8 	(d) Interest under paragraph (c), clause (2) or (3), is
105.9 	payable from the first day of the month next following the date
105.10 	on which the municipality has approved the deferred service
105.11 	pension interest rate established by the board of trustees or
105.12 	from the first day of the month next following the date on which
105.13 	the member separated from active fire department service and
105.14 	relief association membership, whichever is later, to the last
105.15 	day of the month immediately before the month in which the
105.16 	deferred member becomes eligible to begin receipt of the service
105.17 	pension and applies for the deferred service pension.
105.18 	(e) A relief association that provides a defined
105.19 	contribution service pension may, if its governing bylaws so
105.20 	provide, credit interest or additional investment performance on
105.21 	the deferred lump sum service pension during the period of
105.22 	deferral.  If provided for in the bylaws, the interest must be
105.23 	paid in one of the manners specified in paragraph (c) or
105.24 	alternatively the relief association may credit any investment
105.25 	return on the assets of the special fund of the defined
105.26 	contribution volunteer firefighter relief association in
105.27 	proportion to the share of the assets of the special fund to the
105.28 	credit of each individual deferred member account through the
105.29 	date on which the investment return is recognized by and
105.30 	credited to the special fund.
105.31 	(f) For a deferred service pension that is transferred to a
105.32 	separate account established and maintained by the relief
105.33 	association or separate investment vehicle held by the relief
105.34 	association, the deferred member bears the full investment risk
105.35 	subsequent to transfer and in calculating the accrued liability
105.36 	of the volunteer firefighters relief association that pays a
106.1 	lump sum service pension, the accrued liability for deferred
106.2 	service pensions is equal to the separate relief association
106.3 	account balance or the fair market value of the separate
106.4 	investment vehicle held by the relief association.
106.5 	(f) (g) The deferred service pension is governed by and
106.6 	must be calculated under the general statute, special law,
106.7 	relief association articles of incorporation, and relief
106.8 	association bylaw provisions applicable on the date on which the
106.9 	member separated from active service with the fire department
106.10 	and active membership in the relief association.

106.11 	Sec. 13. [424A.021] CREDIT FOR BREAK IN SERVICE TO
106.12 	PROVIDE UNIFORMED SERVICE.
106.13 		Subdivision 1.Authorization. Subject to restrictions
106.14 	stated in this section, a volunteer firefighter who is absent
106.15 	from firefighting service due to service in the uniformed
106.16 	services, as defined in United States Code, title 38, section
106.17 	4303(13), may obtain service credit if the relief association is
106.18 	a defined benefit plan or an allocation of any fire state aid,
106.19 	any municipal contributions, and any investment return received
106.20 	by the relief association if the relief association is a defined
106.21 	benefit contribution plan for the period of the uniformed
106.22 	service, not to exceed five years, unless a longer period is
106.23 	required under United States Code, title 38, section 4312.
106.24 		Subd. 2.Limitations. (a) To be eligible for service
106.25 	credit or financial allocation under this section, the volunteer
106.26 	firefighter must return to firefighting service with coverage by
106.27 	the same relief association or by the successor to that relief
106.28 	association upon discharge from service in the uniformed service
106.29 	within the time frame required in United States Code, title 38,
106.30 	section 4312(e).
106.31 	(b) Service credit or financial allocation is not
106.32 	authorized if the firefighter separates from uniformed service
106.33 	with a dishonorable or bad conduct discharge or under other than
106.34 	honorable conditions.
106.35 	(c) Service credit or financial allocation is not
106.36 	authorized if the firefighter fails to provide notice to the
107.1 	fire department that the individual is leaving to provide
107.2 	service in the uniformed service, unless it is not feasible to
107.3 	provide that notice due to the emergency nature of the situation.

107.4 	Sec. 14. Minnesota Statutes 2004, section 424A.04,
107.5 	subdivision 1, is amended to read:
107.6 		Subdivision 1.Membership.  (a) Every A relief
107.7 	association that is directly associated with a municipal fire
107.8 	department shall must be managed by a board of trustees
107.9 	consisting of nine members.  Six trustees shall must be elected
107.10 	from the membership of the relief association and three trustees
107.11 	shall must be drawn from the officials of the municipalities
107.12 	served by the fire department to which the relief association is
107.13 	directly associated.  The bylaws of a relief association which
107.14 	provides a monthly benefit service pension may provide that one
107.15 	of the six trustees elected from the relief
107.16 	association membership may be a retired member receiving a
107.17 	monthly pension who is elected by the membership of the relief
107.18 	association.  The three ex officio municipal trustees shall be
107.19 	the mayor, the clerk, clerk-treasurer or finance director,must
107.20 	be one elected municipal official and one elected or appointed
107.21 	municipal official who are designated as municipal
107.22 	representatives by the municipal governing board annually and
107.23 	the chief of the municipal fire department.
107.24 	(b) Every A relief association that is a subsidiary of an
107.25 	independent nonprofit firefighting corporation shall must be
107.26 	managed by a board of trustees consisting of ten nine members.
107.27 	Six trustees shall must be elected from the membership of the
107.28 	relief association, three two trustees shall must be drawn from
107.29 	the officials of the municipalities served by the fire
107.30 	department to which the relief association is directly
107.31 	associated, and one trustee shall be the fire chief serving with
107.32 	the independent nonprofit firefighting corporation.  The bylaws
107.33 	of a relief association may provide that one of the six trustees
107.34 	elected from the relief association membership may be a retired
107.35 	member receiving a monthly pension who is elected by the
107.36 	membership of the relief association.  The three ex officio two
108.1 	municipal trustees who are the elected officials shall must 
108.2 	be elected or appointed municipal officials,selected as follows:
108.3 	(1) if only one municipality contracts with the independent
108.4 	nonprofit firefighting corporation, the ex officio municipal 
108.5 	trustees shall must be three elected two officials of the
108.6 	contracting municipality who are designated annually by the
108.7 	governing body of the municipality;
108.8 	(2) if two municipalities contract with the independent
108.9 	nonprofit firefighting corporation, the ex officio trustees
108.10 	shall be two elected officials of the largest municipality in
108.11 	population and one elected official of the next largest
108.12 	municipality in population who are designated by the governing
108.13 	bodies of the applicable municipalities;or
108.14 	(3) (2) if three two or more municipalities contract with
108.15 	the independent nonprofit corporation, the ex officio municipal 
108.16 	trustees shall must be one elected official of from each of
108.17 	the three two largest municipalities in population who are
108.18 	designated annually by the governing bodies of the applicable
108.19 	municipalities.
108.20 	(c) The municipal trustees for a relief association that is
108.21 	directly associated with a fire department operated as or by a
108.22 	joint powers entity must be designated annually by the joint
108.23 	powers board.  The municipal trustees for a relief association
108.24 	that is directly associated with a fire department service area
108.25 	township must be designated by the township board.
108.26 	(d) If a relief association lacks the ex officio municipal 
108.27 	board members provided for in paragraph (a), (b),or (b) (c) 
108.28 	because the fire department is not located in or associated with
108.29 	an organized municipality, joint powers entity, or township,the
108.30 	ex officio municipal board members must be appointed from the
108.31 	fire department service area by the board of commissioners of
108.32 	the applicable county.
108.33 	(e) The term of these appointed ex officio municipal board
108.34 	members is three years one year or until the person's successor
108.35 	is qualified, whichever is later.
108.36 	(d) An ex officio (f) A municipal trustee under paragraph
109.1 	(a), (b), or (c) shall have , or (d) has all the rights and
109.2 	duties accorded to any other trustee,except the right to be an
109.3 	officer of the relief association board of trustees.
109.4 	(e) (g) A board shall must have at least three officers,
109.5 	which shall be who are a president, a secretary and a treasurer.
109.6 	These officers shall must be elected from among the elected
109.7 	trustees by either the full board of trustees or by the
109.8 	membership, as specified in the bylaws, and .In no event shall 
109.9 	may any trustee hold more than one officer position at any one
109.10 	time.  The terms of the elected trustees and of the officers of
109.11 	the board shall must be specified in the bylaws of the relief
109.12 	association, but shall may not exceed three years.  If the term
109.13 	of the elected trustees exceeds one year, the election of the
109.14 	various trustees elected from the membership shall initially and
109.15 	shall thereafter continue to must be staggered on as equal a
109.16 	basis as is practicable.

109.17 	Sec. 15. Minnesota Statutes 2004, section 424B.10,
109.18 	subdivision 1, is amended to read:
109.19 		Subdivision 1.Benefits.  (a) Notwithstanding any
109.20 	provision of section 424A.02, subdivision 3, to the contrary,
109.21 	the service pension of the subsequent relief association as of
109.22 	the effective date of consolidation is either the service
109.23 	pension amount specified in clause (1) or the service pension
109.24 	amounts specified in clause (2), as provided for in the
109.25 	consolidated relief association's articles of incorporation or
109.26 	bylaws:
109.27 	(1) the highest dollar amount service pension amount of any
109.28 	prior volunteer firefighters relief association in effect
109.29 	immediately before the consolidation initiation if the pension
109.30 	amount was implemented consistent with section 424A.02; or 
109.31 	(2) for service rendered by each individual volunteer
109.32 	firefighter under the consolidating volunteer firefighters
109.33 	relief association that the firefighter belonged to immediately
109.34 	before the consolidation if the pension amount was implemented
109.35 	consistent with section 424A.02 and for service rendered after
109.36 	the effective date of the consolidation, the highest dollar
110.1 	amount service pension of any of the consolidating volunteer
110.2 	firefighters relief associations in effect immediately before
110.3 	the consolidation if the pension amount was implemented
110.4 	consistent with section 424A.02.
110.5 	(b) Any increase in the service pension amount beyond the
110.6 	amount implemented under paragraph (a) must conform with the
110.7 	requirements and limitations of sections 69.771 to 69.775 and
110.8 	424A.02.

110.9 	Sec. 16. STUDY OF STATEWIDE LUMP-SUM VOLUNTEER
110.10 	FIREFIGHTER RETIREMENT PLAN; CREATION OF TASK FORCE.
 110.11 		Subdivision 1.Task force membership. (a) A statewide
110.12 	Volunteer Firefighter Retirement Plan Study Task Force is
110.13 	created.
110.14 	(b) The task force members are:
110.15 	(1) four members appointed by the president of the
110.16 	Minnesota Area Relief Association coalition;
110.17 	(2) four members appointed by the president of the
110.18 	Minnesota State Fire Department Association;
110.19 	(3) four members appointed by the president of the
110.20 	Minnesota State Fire Chiefs Association;
110.21 	(4) four members appointed by the board of directors of the
110.22 	League of Minnesota Cities;
110.23 	(5) two members appointed by the board of directors of the
110.24 	Insurance Federation of Minnesota;
110.25 	(6) two members appointed by the board of directors of the
110.26 	Minnesota Association of Farm Mutual Insurance Companies; and 
110.27 	(7) the Minnesota state auditor or the auditor's designee.
110.28 	(c) Appointments must be made on or before July 1, 2005.
110.29 	If the appointment is not made in a timely manner, or if there
110.30 	is a vacancy, the state auditor shall appoint the task force
110.31 	member or the replacement member.
110.32 	(d) The chair of the task force shall be selected by the
110.33 	task force.
110.34 	(e) Administrative services for the task force must be
110.35 	provided by the Department of Public Safety.
110.36 		Subd. 2.Task force duties. (a) The task force shall
111.1 	conduct fact finding regarding the creation of a statewide
111.2 	volunteer firefighter retirement plan.
111.3 	(b) The task force shall recommend whether a statewide
111.4 	volunteer firefighter retirement plan should be created.  If the
111.5 	task force concludes a statewide volunteer fire plan has merit,
111.6 	the task force shall recommend the investment vehicle or
111.7 	vehicles to be utilized by the plan, the administration and
111.8 	corporate governance structure of the plan, the incentives
111.9 	needed to formulate the plan, the limitations applicable to the
111.10 	plan, and the state resources needed to be dedicated to the
111.11 	plan.  The task force may also consider creation of regional
111.12 	plans.
111.13 		Subd. 3.Report. The task force shall prepare a report
111.14 	detailing its findings about a potential statewide or regional
111.15 	volunteer firefighter retirement plan or plans.  The report is
111.16 	due January 15, 2006, and must be filed with the Legislative
111.17 	Reference Library; the chair of the Legislative Commission on
111.18 	Pensions and Retirement; the chair of the State and Local
111.19 	Governmental Operations Committee of the senate; the chair of
111.20 	the State Government Budget Division of the senate Finance
111.21 	Committee; the chair of the Governmental Operations and Veterans
111.22 	Affairs Committee of the house of representatives; and the chair
111.23 	of the State Government Finance Committee of the house of
111.24 	representatives.

111.25 	Sec. 17. APPROPRIATION.
 111.26 	$40,000 is appropriated from the general fund in fiscal
111.27 	year 2006 to the commissioner of public safety to hire a
111.28 	consultant to assist the statewide Volunteer Firefighter
111.29 	Retirement Plan Study Task Force.

111.30 	Sec. 18. EFFECTIVE DATE.
 111.31 	(a) Sections 1 to 12, 14, 15, and 17 are effective July 1,
111.32 	2005.
111.33 	(b) Section 13 is effective July 1, 2005, and applies to
111.34 	breaks in service that end on or after that date.
111.35 	(c) Section 16 is effective the day following final
111.36 	enactment.

112.1 	ARTICLE 12
112.2 	VARIOUS CORRECTIONS
112.3 	AND CLARIFICATIONS

112.4 	Section 1. Minnesota Statutes 2004, section 3A.13, is
112.5 	amended to read:
112.6 	3A.13 EXEMPTION FROM PROCESS AND TAXATION; HEALTH PREMIUM
112.7 	DEDUCTION.
112.8 	(a) The provisions of section 352.15 shall 356.401 apply to
112.9 	the legislators retirement plan, chapter 3A.
112.10 	(b) The executive director of the Minnesota State
112.11 	Retirement System must, at the request of a retired legislator
112.12 	who is enrolled in a health insurance plan covering state
112.13 	employees, deduct the person's health insurance premiums from
112.14 	the person's annuity and transfer the amount of the premium to a
112.15 	health insurance carrier covering state employees.

112.16 	Sec. 2. Minnesota Statutes 2004, section 69.011,
112.17 	subdivision 2b, is amended to read:
112.18 		Subd. 2b.Departments of natural resources and public
112.19 	safety.  (a) On or before July 1, 1997, the commissioner of
112.20 	natural resources shall certify one-half of the number of peace
112.21 	officers as defined in subdivision 1, clause (g), employed by
112.22 	the Enforcement Division during calendar year 1996 and the
112.23 	commissioner of public safety shall certify one-half of the
112.24 	number of peace officers as defined in subdivision 1, clause
112.25 	(g), employed by the Bureau of Criminal Apprehension, the
112.26 	Gambling Enforcement Division, and the State Patrol Division
112.27 	during calendar year 1996.
112.28 	(b) On or before March 15, 1998, the commissioner of
112.29 	natural resources shall certify seven-tenths of the number of
112.30 	peace officers as defined in subdivision 1, clause (g), employed
112.31 	by the Enforcement Division and the commissioner of public
112.32 	safety shall certify seven-tenths of the number of peace
112.33 	officers as defined in subdivision 1, clause (g), employed by
112.34 	the Bureau of Criminal Apprehension, the Gambling Enforcement
112.35 	Division, and the State Patrol Division.
112.36 	(c) On or before March 15, 1999, and annually on or before 
113.1 	each March 15 thereafter, the commissioner of natural resources
113.2 	shall certify the number of peace officers as defined in
113.3 	subdivision 1, clause (g), employed by the Enforcement Division
113.4 	and the commissioner of public safety shall certify the number
113.5 	of peace officers as defined in subdivision 1, clause (g),
113.6 	employed by the Bureau of Criminal Apprehension, the Gambling
113.7 	Enforcement Division, and the State Patrol Division.
113.8 	(d) (b) The certification must be on a form prescribed by
113.9 	the commissioner.  Peace officers certified under this paragraph
113.10 	must be included in the total certifications under subdivision 2.

113.11 	Sec. 3. Minnesota Statutes 2004, section 69.021,
113.12 	subdivision 5, is amended to read:
113.13 		Subd. 5.Calculation of state aid.  (a) The amount of
113.14 	fire state aid available for apportionment, before the addition
113.15 	of the minimum fire state aid allocation amount under
113.16 	subdivision 7, is equal to 107 percent of the amount of premium
113.17 	taxes paid to the state upon the fire, lightning, sprinkler
113.18 	leakage, and extended coverage premiums reported to the
113.19 	commissioner by insurers on the Minnesota Firetown Premium
113.20 	Report.  This amount shall must be reduced by the amount
113.21 	required to pay the state auditor's costs and expenses of the
113.22 	audits or exams of the firefighters relief associations.
113.23 	The total amount for apportionment in respect to fire state
113.24 	aid must not be less than two percent of the premiums reported
113.25 	to the commissioner by insurers on the Minnesota Firetown
113.26 	Premium Report after subtracting the following amounts:
113.27 	(1) the amount required to pay the state auditor's costs
113.28 	and expenses of the audits or exams of the firefighters relief
113.29 	associations; and
113.30 	(2) one percent of the premiums reported by town and
113.31 	farmers' mutual insurance companies and mutual property and
113.32 	casualty companies with total assets of $5,000,000 or less.
113.33 	(b) The total amount for apportionment as police state aid
113.34 	is equal to 104 percent of the amount of premium taxes paid to
113.35 	the state on the premiums reported to the commissioner by
113.36 	insurers on the Minnesota Aid to Police Premium Report, reduced
114.1 	by the amount required to pay the costs and expenses of the
114.2 	state auditor for audits or exams of police relief
114.3 	associations.  The total amount for apportionment in respect to
114.4 	the police state aid program must not be less than two percent
114.5 	of the amount of premiums reported to the commissioner by
114.6 	insurers on the Minnesota Aid to Police Premium Report after
114.7 	subtracting the amount required to pay the state auditor's cost
114.8 	and expenses of the audits or exams of the police relief
114.9 	associations.
114.10 	(c) The commissioner shall calculate the percentage of
114.11 	increase or decrease reflected in the apportionment over or
114.12 	under the previous year's available state aid using the same
114.13 	premiums as a basis for comparison.
114.14 	(d) The amount for apportionment in respect to peace
114.15 	officer state aid under paragraph (b) must be further reduced by
114.16 	$1,779,000 in fiscal year 1999, $2,077,000 in fiscal year 2000,
114.17 	and $2,404,000 in fiscal year 2001.  These reductions in this
114.18 	paragraph cancel to the general fund.
114.19 	(e) In addition to the amount for apportionment of police
114.20 	state aid under paragraph (b), each year $100,000 shall must be
114.21 	apportioned for police state aid.  An amount sufficient to pay
114.22 	this increase is annually appropriated from the general fund.

114.23 	Sec. 4. Minnesota Statutes 2004, section 69.021,
114.24 	subdivision 11, is amended to read:
114.25 		Subd. 11.Excess police state-aid holding account.  (a)
114.26 	The excess police state-aid holding account is established in
114.27 	the general fund.  The excess police state-aid holding account
114.28 	must be administered by the commissioner.
114.29 	(b) Excess police state aid determined according to
114.30 	subdivision 10, must be deposited in the excess police state-aid
114.31 	holding account.
114.32 	(c) From the balance in the excess police state-aid holding
114.33 	account, $900,000 is appropriated to and must be transferred
114.34 	annually to the ambulance service personnel longevity award and
114.35 	incentive suspense account established by section 144E.42,
114.36 	subdivision 2.
115.1 	(d) If a police officer stress reduction program is created
115.2 	by law and money is appropriated for that program, an amount
115.3 	equal to that appropriation must be transferred to the
115.4 	administrator of that program from the balance in the excess
115.5 	police state-aid holding account.
115.6 	(e) On October 1, 1997, and annually on each subsequent
115.7 	October 1 of each year, one-half of the balance of the excess
115.8 	police state-aid holding account remaining after the deductions
115.9 	under paragraphs (c) and (d) is appropriated for additional
115.10 	amortization aid under section 423A.02, subdivision 1b.
115.11 	(f) Annually, the remaining balance in the excess police
115.12 	state-aid holding account, after the deductions under paragraphs
115.13 	(c), (d), and (e), cancels to the general fund.

115.14 	Sec. 5. Minnesota Statutes 2004, section 69.33, is amended
115.15 	to read:
115.16 	69.33 NAMES OF ASSOCIATIONS REPORTED TO INSURANCE
115.17 	COMPANIES.
115.18 	The commissioner shall enclose in the annual statement
115.19 	blank that is sent to all fire insurance companies doing
115.20 	business in this state a blank form containing the names of all
115.21 	firefighters' relief associations in all cities of the first
115.22 	class and the names of the cities and require these companies,
115.23 	at the time of making their annual statements to the
115.24 	commissioner, to state on these blanks the amount of premiums
115.25 	received by them upon properties insured within the corporate
115.26 	limits of the cities named thereon during the year ending
115.27 	December 31st last past.  Thereafter, before July first each
115.28 	year, the commissioner shall certify to the commissioner of
115.29 	finance the information thus obtained, together with the amount
115.30 	of the tax for the benefit of the relief association pension
115.31 	plans covering firefighters in cities of the first class paid in
115.32 	such year by these companies upon these insurance premiums.

115.33 	Sec. 6. Minnesota Statutes 2004, section 69.773,
115.34 	subdivision 4, is amended to read:
115.35 		Subd. 4.Financial requirements of special fund. Prior
115.36 	to Before August 1 of each year, the officers of the relief
116.1 	association shall determine the financial requirements of the
116.2 	special fund of the relief association in accordance with the
116.3 	requirements of this subdivision.  The financial requirements of
116.4 	the relief association shall must be based on the most recent
116.5 	actuarial valuation of the special fund prepared in accordance
116.6 	with subdivision 2.  If the relief association has an unfunded
116.7 	actuarial accrued liability as reported in the most recent
116.8 	actuarial valuation, the financial requirements shall must be
116.9 	determined by adding the figures calculated pursuant to under 
116.10 	clauses (a), (b), and (c).  If the relief association does not
116.11 	have an unfunded actuarial accrued liability as reported in the
116.12 	most recent actuarial valuation, the financial requirements
116.13 	shall must be an amount equal to the figure calculated pursuant
116.14 	to under clauses (a) and (b), reduced by an amount equal to
116.15 	one-tenth of the amount of any assets in excess of the actuarial
116.16 	accrued liability of the relief association.  The determination
116.17 	of whether or not the relief association has an unfunded
116.18 	actuarial accrued liability shall must be based on the current
116.19 	market value of assets for which a market value is readily
116.20 	ascertainable and the cost or book value, whichever is
116.21 	applicable, for assets for which no market value is readily
116.22 	ascertainable.
116.23 	(a) The normal level cost requirement for the following
116.24 	year, expressed as a dollar amount, shall be is the figure for
116.25 	the normal level cost of the relief association as reported in
116.26 	the actuarial valuation.
116.27 	(b) The amount of anticipated future administrative
116.28 	expenses of the special fund shall must be calculated by
116.29 	multiplying the dollar amount of the administrative expenses of
116.30 	the special fund for the most recent year by the factor of 1.035.
116.31 	(c) The amortization contribution requirement to retire the
116.32 	current unfunded actuarial accrued liability by the established
116.33 	date for full funding shall be is the figure for the
116.34 	amortization contribution as reported in the actuarial
116.35 	valuation. If there has not been a change in the actuarial
116.36 	assumptions used for calculating the actuarial accrued liability
117.1 	of the special fund, a change in the bylaws of the relief
117.2 	association governing the service pensions, retirement benefits,
117.3 	or both payable from the special fund or a change in the
117.4 	actuarial cost method used to value all or a portion of the
117.5 	special fund which change or changes, which by themselves
117.6 	without inclusion of any other items of increase or decrease,
117.7 	produce a net increase in the unfunded actuarial accrued
117.8 	liability of the special fund since December 31, 1970, the
117.9 	established date for full funding shall be December 31, 1990.
117.10 	If there has been a change in the actuarial assumptions used for
117.11 	calculating the actuarial accrued liability of the special fund,
117.12 	a change in the bylaws of the relief association governing the
117.13 	service pensions, retirement benefits, or both payable from the
117.14 	special fund or a change in the actuarial cost method used to
117.15 	value all or a portion of the special fund and the change or
117.16 	changes, by themselves and without inclusion of any other items
117.17 	of increase or decrease, produce a net increase in the unfunded
117.18 	actuarial accrued liability of the special fund since December
117.19 	31, 1970, but prior to January 1, 1979, the established date for
117.20 	full funding shall be December 31, 1998, and if there has been a
117.21 	change since December 31, 1978, the established date for full
117.22 	funding shall must be determined using the following procedure:
117.23 	(i) the unfunded actuarial accrued liability of the special
117.24 	fund shall must be determined in accordance with the provisions
117.25 	governing service pensions, retirement benefits, and actuarial
117.26 	assumptions in effect before an applicable change;
117.27 	(ii) the level annual dollar contribution needed to
117.28 	amortize this unfunded actuarial accrued liability amount by the
117.29 	date for full funding in effect prior to before the change shall 
117.30 	must be calculated using the interest assumption specified in
117.31 	section 356.215, subdivision 8, in effect before any applicable
117.32 	change;
117.33 	(iii) the unfunded actuarial accrued liability of the
117.34 	special fund shall must be determined in accordance with any new
117.35 	provisions governing service pensions, retirement benefits, and
117.36 	actuarial assumptions and the remaining provisions governing
118.1 	service pensions, retirement benefits, and actuarial assumptions
118.2 	in effect before an applicable change;
118.3 	(iv) the level annual dollar contribution needed to
118.4 	amortize the difference between the unfunded actuarial accrued
118.5 	liability amount calculated pursuant to under subclause (i) and
118.6 	the unfunded actuarial accrued liability amount
118.7 	calculated pursuant to under subclause (iii) over a period of 20
118.8 	years starting December 31 of the year in which the change is
118.9 	effective shall must be calculated using the interest assumption
118.10 	specified in section 356.215, subdivision 8, in effect after any
118.11 	applicable change;
118.12 	(v) the annual amortization contribution calculated
118.13 	pursuant to under subclause (iv) shall must be added to the
118.14 	annual amortization contribution calculated pursuant to under 
118.15 	subclause (ii);
118.16 	(vi) the period in which the unfunded actuarial accrued
118.17 	liability amount determined in subclause (iii) will be amortized
118.18 	by the total annual amortization contribution computed pursuant
118.19 	to under subclause (v) shall must be calculated using the
118.20 	interest assumption specified in section 356.215, subdivision 8,
118.21 	in effect after any applicable change, rounded to the nearest
118.22 	integral number of years, but which shall does not exceed a
118.23 	period of 20 years from the end of the year in which the
118.24 	determination of the date for full funding using this procedure
118.25 	is made and which shall is not be less than the period of years
118.26 	beginning in the year in which the determination of the date for
118.27 	full funding using this procedure is made and ending by the date
118.28 	for full funding in effect before the change;
118.29 	(vii) the period determined pursuant to under subclause (vi)
118.30 	shall must be added to the date as of which the actuarial
118.31 	valuation was prepared and the resulting date shall be is the
118.32 	new date for full funding.

118.33 	Sec. 7. Minnesota Statutes 2004, section 352.01,
118.34 	subdivision 4, is amended to read:
118.35 		Subd. 4.Accumulated contributions.  "Accumulated
118.36 	contributions" means the total, exclusive of interest, of (1)
119.1 	the sums deducted from the salary of an employee, (2) the amount
119.2 	of payments, including assessments, paid by the employee in lieu
119.3 	of salary deductions and all other payments made under Laws
119.4 	1929, chapter 191, as amended,this chapter and credited to the
119.5 	employee's individual account in the retirement fund.

119.6 	Sec. 8. Minnesota Statutes 2004, section 352.01,
119.7 	subdivision 5, is amended to read:
119.8 		Subd. 5.Retirement fund. (a) "Retirement fund" means
119.9 	the general state employees retirement fund created by section
119.10 	352.04, subdivision 1, with respect to the general state
119.11 	employees retirement plan or the correctional state employees
119.12 	retirement fund created by section 352.911, subdivision 1, with
119.13 	respect to the correctional state employees retirement plan.
119.14 	(b) " The retirement fund " includes the aggregate of
119.15 	accumulated contributions of employees covered by the applicable
119.16 	plan, and all other funds paid into the state treasury or
119.17 	received by the director under Laws 1929, chapter 191, as
119.18 	amended this chapter, together with all income and profits from
119.19 	the money and interest on it, including contributions on the
119.20 	part of the federal government, the state, and state departments.

119.21 	Sec. 9. Minnesota Statutes 2004, section 352.01,
119.22 	subdivision 21, is amended to read:
119.23 		Subd. 21.Accrued annuities. (a) In this chapter and
119.24 	chapters 3A, 352B, 352C, and 490, "accrued annuity"  means an
119.25 	annuity that had become payable to a retired employee in the
119.26 	lifetime of the employee.
119.27 	(b) An annuity or benefit authorized as provided in this
119.28 	chapter and chapters 3A, 352B, 352C, and 490 becomes payable on
119.29 	the first day of each calendar month for that calendar month and
119.30 	is to must be paid on the first day of each calendar month
119.31 	beginning with benefits payable on and after December 1, 1977.
119.32 	(c) Notwithstanding any provision to the contrary in this
119.33 	chapter and chapters 3A, 352B, 352C, and 490, benefit payment
119.34 	authorized as "payable for life" is payable for the entire month
119.35 	in which death occurs, and the benefit payment for the month of
119.36 	death is payable to the surviving spouse or other beneficiary
120.1 	only if the annuitant dies before negotiating the benefit check.

120.2 	Sec. 10. Minnesota Statutes 2004, section 352.01,
120.3 	subdivision 23, is amended to read:
120.4 		Subd. 23.Coverage or covered by the system.  "Coverage"
120.5 	or "covered by the system" means that a state employees employee 
120.6 	who serve serves the state of Minnesota and make makes the
120.7 	required employee contributions to the retirement fund will is,
120.8 	by reason of these contributions become ,entitled to either (1)
120.9 	a retirement annuity, or (2) a disability benefit, or (3) a
120.10 	refund of accumulated contributions, as provided in this chapter.

120.11 	Sec. 11. Minnesota Statutes 2004, section 352.021,
120.12 	subdivision 1, is amended to read:
120.13 		Subdivision 1.Establishment. (a) There is established
120.14 	the general state employees retirement plan of the Minnesota
120.15 	State Retirement System for state employees.
120.16 	(b) The system general state employees retirement plan is a
120.17 	continuation of the State Employees Retirement Association.
120.18 	(c) Any person who was a member of the State Employees
120.19 	Retirement Association on June 30, 1967, is covered by
120.20 	the system general state employees retirement plan and is
120.21 	entitled to all benefits provided by the system plan upon
120.22 	fulfilling the age, service, contribution, and other
120.23 	requirements of this chapter.

120.24 	Sec. 12. Minnesota Statutes 2004, section 352.021,
120.25 	subdivision 2, is amended to read:
120.26 		Subd. 2.State employees covered.  Every person who is a
120.27 	state employee, as defined in section 352.01, on July 1, 1967,
120.28 	or becomes a state employee after that date as defined in
120.29 	section 352.01is covered by the system general state employees
120.30 	retirement plan.  Acceptance of state employment or continuance
120.31 	in state service is deemed to be consent to have deductions made
120.32 	from salary for deposit to the credit of the account of the
120.33 	state employee in the retirement fund.

120.34 	Sec. 13. Minnesota Statutes 2004, section 352.021,
120.35 	subdivision 3, is amended to read:
120.36 		Subd. 3.Optional exemptions.  Any person who is
121.1 	appointed by the governor or lieutenant governor may request
121.2 	exemption from coverage by the general state employees
121.3 	retirement plan under this chapter if the appointee is not so 
121.4 	covered at by the plan on the date of appointment.  To qualify
121.5 	for this exemption, a written request must be made within 90
121.6 	days from the date of entering upon the duties of the position
121.7 	to which the person is appointed.  After making the request, a
121.8 	person requesting the exemption is not entitled to coverage by
121.9 	the general state employees retirement plan while employed in
121.10 	the position that entitled that person to an exemption from
121.11 	coverage.

121.12 	Sec. 14. Minnesota Statutes 2004, section 352.021,
121.13 	subdivision 4, is amended to read:
121.14 		Subd. 4.Reentering service after refund.  When a former
121.15 	employee who has withdrawn accumulated contributions reenters
121.16 	employment in a position entitled to coverage under the
121.17 	system general state employees retirement plan, the employee
121.18 	shall must be covered by the system plan on the same basis as a
121.19 	new employee and is not entitled to credit for any former
121.20 	service.  The annuity rights forfeited when taking a refund can
121.21 	only be restored as provided in this chapter.

121.22 	Sec. 15. Minnesota Statutes 2004, section 352.04,
121.23 	subdivision 1, is amended to read:
121.24 		Subdivision 1.Fund created.  (a) There is created a
121.25 	special fund to be known as the general state employees
121.26 	retirement fund.  In that fund there shall be deposited
121.27 	employees , employee contributions, employers employer 
121.28 	contributions, and other amounts authorized by law must be
121.29 	deposited.
121.30 	(b) Effective July 1, 1969,The general state employees
121.31 	retirement plan of the Minnesota State Retirement System shall 
121.32 	must participate in the Minnesota postretirement investment fund.
121.33 	In that fund there shall be deposited The amounts provided in
121.34 	section 352.119must be deposited in the Minnesota
121.35 	postretirement investment fund.

121.36 	Sec. 16. Minnesota Statutes 2004, section 352.04,
122.1 	subdivision 12, is amended to read:
122.2 		Subd. 12.Fund disbursement restricted.  The general 
122.3 	state employees retirement fund and the participation in the
122.4 	Minnesota postretirement investment fund must be disbursed only
122.5 	for the purposes provided by law.  The expenses of the system
122.6 	and any benefits provided by law, other than benefits payable
122.7 	from the Minnesota postretirement investment fund, must be paid
122.8 	from the general state employees retirement fund.  The
122.9 	retirement allowances, retirement annuities, and disability
122.10 	benefits, as well as refunds of any sum remaining to the credit
122.11 	of a deceased retired employee or a disabled employee must be
122.12 	paid only from the general state employees retirement fund after
122.13 	the needs have been certified and the amounts withdrawn from the
122.14 	participation in the Minnesota postretirement investment fund
122.15 	under section 11A.18.  The amounts necessary to make the
122.16 	payments from the general state employees retirement fund and
122.17 	the participation in the Minnesota postretirement investment
122.18 	fund are annually appropriated from these funds for those
122.19 	purposes.

122.20 	Sec. 17. Minnesota Statutes 2004, section 352.041,
122.21 	subdivision 1, is amended to read:
122.22 		Subdivision 1.Allowable service credit. Any (a) An 
122.23 	employee covered by the system general state employees
122.24 	retirement plan who is given a leave of absence for employment
122.25 	by a political subdivision of the state shall remains a member
122.26 	of the plan and must continue to pay member contributions into
122.27 	the general state employees retirement fund for the period of
122.28 	leave.
122.29 	(b) Upon payment of member contributions,the employee must
122.30 	be given allowable service credit as a state employee on the
122.31 	records of the system retirement plan as though the employee had
122.32 	received salary from the state during the leave.  Payments into
122.33 	the retirement fund shall must be at the rate required in
122.34 	section 352.04, subdivision 2, and must be based upon the salary
122.35 	received from the political subdivision subject to the maximum
122.36 	amount, if any.

123.1 	Sec. 18. Minnesota Statutes 2004, section 352.041,
123.2 	subdivision 2, is amended to read:
123.3 		Subd. 2.Employee contributions, procedure.  The officer
123.4 	or employee who is authorized by law to pay salaries to
123.5 	employees of the political subdivision which is employing a
123.6 	state employee shall have must deduct employee contributions
123.7 	deducted for the general state employees retirement plan under
123.8 	section 352.04, subdivision 2,from the salary of each employee
123.9 	who is on leave of absence from state service on each payroll
123.10 	abstract and shall must pay the sum to the director following
123.11 	the conclusion of each pay period.

123.12 	Sec. 19. Minnesota Statutes 2004, section 352.041,
123.13 	subdivision 3, is amended to read:
123.14 		Subd. 3.Employer contributions, procedure.  The officer
123.15 	or employee who is authorized by law to pay salaries to
123.16 	employees of the political subdivision which is employing a
123.17 	state employee covered by the system shall general state
123.18 	employees retirement plan also must have employer contributions
123.19 	made to the general state employees retirement fund on following
123.20 	the conclusion of each payroll abstract in the amount required
123.21 	by section 352.04, subdivision 3.  These contributions are to 
123.22 	must be charged to the political subdivision as an
123.23 	administrative cost.

123.24 	Sec. 20. Minnesota Statutes 2004, section 352.041,
123.25 	subdivision 5, is amended to read:
123.26 		Subd. 5.Employer contributions, leaves of absence; tax
123.27 	levies. (a) Every political subdivision which is employing a
123.28 	state employee covered by the system on leave of absence from
123.29 	state service for employment by a political subdivision of the
123.30 	state shall must pay into the general state employees retirement
123.31 	fund the amount of the employer contribution required by law for
123.32 	state employees covered by the system under section 352.04,
123.33 	subdivision 3.
123.34 	(b) Employing political subdivisions, except other than 
123.35 	school districts,may levy taxes necessary for the payment of
123.36 	employer contributions without limitation as to rate or amount.
124.1 	The levy of the taxes does not reduce the amount of other
124.2 	taxes to that may be levied by political subdivisions,
124.3 	except other than school districts,which are subject to any
124.4 	limitation.

124.5 	Sec. 21. Minnesota Statutes 2004, section 352.15,
124.6 	subdivision 1, is amended to read:
124.7 		Subdivision 1.Exemption; exceptions. None of the money,
124.8 	annuities, or other benefits mentioned in this chapter is
124.9 	assignable either in law or in equity or subject to execution,
124.10 	levy, attachment, garnishment, or other legal process, except as
124.11 	provided in subdivision 1a or section 518.58, 518.581, or
124.12 	518.6111.The provisions of section 356.401 apply to the general
124.13 	state employees retirement plan and to the correctional state
124.14 	employees retirement plan.

124.15 	Sec. 22. Minnesota Statutes 2004, section 352.15,
124.16 	subdivision 3, is amended to read:
124.17 		Subd. 3.Deducting health or dental insurance premiums.
 124.18 	The board may direct authorize, at its discretion, the deduction
124.19 	of a retiree's health or dental insurance premiums and transfer
124.20 	of the amounts to a health or dental insurance carrier covering
124.21 	state employees.  The insurance carrier must certify that the
124.22 	retired employee has signed an authorization for the deduction
124.23 	and provide a computer readable roster of covered retirees and
124.24 	amounts.  The health or dental insurance carrier must refund
124.25 	deductions withheld from a retiree's check in error directly to
124.26 	the retiree.  The board shall require that the insurance carrier
124.27 	to reimburse the fund for the administrative expense of
124.28 	withholding the premium amounts.  The insurance carrier shall
124.29 	assume liability for any failure of the system to properly
124.30 	withhold the premium amounts.

124.31 	Sec. 23. Minnesota Statutes 2004, section 352.15,
124.32 	subdivision 4, is amended to read:
124.33 		Subd. 4.Direct transfer of refunds. A direct transfer
124.34 	of account refunds under this chapter may be made to an 
124.35 	individual retirement savings accounts account or a qualified
124.36 	retirement plans plan of the person upon the receipt of an 
125.1 	application for transfer by a former employee, on forms
125.2 	acceptable to the executive director.

125.3 	Sec. 24. Minnesota Statutes 2004, section 352.22,
125.4 	subdivision 10, is amended to read:
125.5 		Subd. 10.Other refunds.  Former employees covered by the
125.6 	system are entitled to apply for refunds if they are or become
125.7 	members of the State Patrol retirement fund, the state Teachers
125.8 	Retirement Association, or employees of the University of
125.9 	Minnesota excluded from coverage under the system by action of
125.10 	the Board of Regents; or labor service employees, excluded from
125.11 	coverage under section 352.01, subdivision 2b, clause (25);or
125.12 	employees of the adjutant general who under federal law
125.13 	effectually elect membership in a federal retirement system; or
125.14 	officers or employees of the senate or house of representatives,
125.15 	excluded from coverage under section 352.01, subdivision 2b,
125.16 	clause (8) (7).  The refunds must include accumulated
125.17 	contributions plus interest as provided in subdivision 2.  These
125.18 	employees may apply for a refund once 30 days or more have
125.19 	elapsed after their coverage ceases, even if they continue in
125.20 	state service but in positions not covered by this chapter.

125.21 	Sec. 25. Minnesota Statutes 2004, section 352B.01,
125.22 	subdivision 1, is amended to read:
125.23 		Subdivision 1.Scope.  In this chapter, each of the terms
125.24 	defined in this section have has the meanings meaning given
125.25 	them to it.

125.26 	Sec. 26. Minnesota Statutes 2004, section 352B.01,
125.27 	subdivision 2, is amended to read:
125.28 		Subd. 2.Member.  "Member" means:
125.29 	(1) a State Patrol member currently employed after June 30,
125.30 	1943,under section 299D.03 by the state, who is a peace officer
125.31 	under section 626.84, and whose salary or compensation is paid
125.32 	out of state funds;
125.33 	(2) a conservation officer employed under section 97A.201,
125.34 	currently employed by the state, whose salary or compensation is
125.35 	paid out of state funds;
125.36 	(3) a crime bureau officer who was employed by the crime
126.1 	bureau and was a member of the Highway Patrolmen's retirement
126.2 	fund on July 1, 1978, whether or not that person has the power
126.3 	of arrest by warrant after that date, or who is employed as
126.4 	police personnel, with powers of arrest by warrant under section
126.5 	299C.04, and who is currently employed by the state, and whose
126.6 	salary or compensation is paid out of state funds;
126.7 	(4) a person who is employed by the state in the Department
126.8 	of Public Safety in a data processing management position with
126.9 	salary or compensation paid from state funds, who was a crime
126.10 	bureau officer covered by the State Patrol retirement plan on
126.11 	August 15, 1987, and who was initially hired in the data
126.12 	processing management position within the department during
126.13 	September 1987, or January 1988, with membership continuing for
126.14 	the duration of the person's employment in that position,
126.15 	whether or not the person has the power of arrest by warrant
126.16 	after August 15, 1987;
126.17 	(5) a public safety employee defined as who is a peace
126.18 	officer in under section 626.84, subdivision 1, paragraph (c),
126.19 	and who is employed with by the Division of Alcohol and Gambling
126.20 	Enforcement under section 299L.01; and
126.21 	(6) a Fugitive Apprehension Unit officer after October 31,
126.22 	2000, who is employed by the Office of Special Investigations of
126.23 	the Department of Corrections and who is a peace officer under
126.24 	section 626.84.

126.25 	Sec. 27. Minnesota Statutes 2004, section 352B.01,
126.26 	subdivision 3, is amended to read:
126.27 		Subd. 3.Allowable service.  (a) "Allowable service"
126.28 	means:
126.29 	(1) for members defined in subdivision 2, clause (a) (1),
126.30 	monthly service is granted for in any month for which payments
126.31 	have been made to the State Patrol retirement fund, and
126.32 	(2) for members defined in subdivision 2, clauses (b) (2) 
126.33 	and (c) (3), service for which payments have been made to the
126.34 	State Patrol retirement fund, service for which payments were
126.35 	made to the State Police officers retirement fund after June 30,
126.36 	1961, and all prior service which was credited to a member for
127.1 	service on or before June 30, 1961.
127.2 	(b) Allowable service also includes any period of absence
127.3 	from duty by a member who, by reason of injury incurred in the
127.4 	performance of duty, is temporarily disabled and for which
127.5 	disability the state is liable under the workers' compensation
127.6 	law, until the date authorized by the executive director for
127.7 	commencement of payment of a disability benefit or return to
127.8 	employment.
127.9 	(c) MS 2002 (Expired)
127.10 	(d) Allowable service means service in a month during which
127.11 	a member is paid a salary from which a member contribution is
127.12 	deducted, deposited, and credited in the State Patrol retirement
127.13 	plan.

127.14 	Sec. 28. Minnesota Statutes 2004, section 352B.02,
127.15 	subdivision 1e, is amended to read:
127.16 		Subd. 1e.Audit; actuarial valuation.  The legislative
127.17 	auditor shall audit the fund.  Any actuarial valuation of the
127.18 	fund required under section 356.215 must be prepared by the
127.19 	actuary retained under section 356.214.  Any approved actuary
127.20 	retained by the executive director under section 352.03,
127.21 	subdivision 6, may perform actuarial valuations and experience
127.22 	studies to supplement those performed by the commission-retained 
127.23 	actuary retained under section 356.214.  Any supplemental
127.24 	actuarial valuation or experience studies shall must be filed
127.25 	with the executive director of the Legislative Commission on
127.26 	Pensions and Retirement.

127.27 	Sec. 29. Minnesota Statutes 2004, section 352B.071, is
127.28 	amended to read:
127.29 	352B.071 EXEMPTION FROM PROCESS.
127.30 	None of the money, annuities, or other benefits provided
127.31 	for in this chapter is assignable either in law or in equity or
127.32 	be subject to execution, levy, attachment, garnishment, or other
127.33 	legal process, except as provided in section 518.58, 518.581, or
127.34 	518.6111.The provisions of section 356.401 apply to the State
127.35 	Patrol retirement plan.

127.36 	Sec. 30. Minnesota Statutes 2004, section 352D.01, is
128.1 	amended to read:
128.2 	352D.01 ESTABLISHMENT.
128.3 	There is hereby established within the Minnesota State
128.4 	Retirement System a retirement program for certain public
128.5 	employees to be known as the Minnesota unclassified employees
128.6 	retirement program, which shall be .  The program must be 
128.7 	administered by the Minnesota State Retirement System.

128.8 	Sec. 31. Minnesota Statutes 2004, section 352D.015,
128.9 	subdivision 3, is amended to read:
128.10 		Subd. 3.Supplemental investment fund.  "Supplemental
128.11 	investment fund" means the fund established and governed by
128.12 	section 11A.17.

128.13 	Sec. 32. Minnesota Statutes 2004, section 352D.015,
128.14 	subdivision 4, is amended to read:
128.15 		Subd. 4.General fund.  "General fund" means the general 
128.16 	state employees retirement fund except the moneys for the
128.17 	unclassified program.

128.18 	Sec. 33. Minnesota Statutes 2004, section 352D.03, is
128.19 	amended to read:
128.20 	352D.03 TRANSFER OF ASSETS.
128.21 	Unless an eligible employee enumerated in section 352D.02,
128.22 	subdivision 1 or 1a, has elected coverage under the individual
128.23 	retirement account plan under chapter 354B, a sum of money
128.24 	representing the assets credited to each employee exercising the
128.25 	option contained in section 352D.02, plus an equal employer
128.26 	contribution together with interest for the employment period at
128.27 	the actuarially assumed rates applicable preretirement interest
128.28 	actuarial assumption rate during this period, compounded
128.29 	annually, shall must be used for the purchase of shares on
128.30 	behalf of each employee in the accounts of the supplemental
128.31 	retirement fund established by section 11A.17. Any employer's
128.32 	contribution to amortize the deficit in the state employee's
128.33 	retirement fund shall not, however, be used for the purchase of
128.34 	shares.

128.35 	Sec. 34. Minnesota Statutes 2004, section 352D.05,
128.36 	subdivision 4, is amended to read:
129.1 		Subd. 4.Repayment of refund. (a) A participant in the
129.2 	unclassified program may repay regular refunds taken pursuant to 
129.3 	under section 352.22, as provided in section 352.23.
129.4 	(b) A participant in the unclassified program or an
129.5 	employee covered by the general plan who has withdrawn the value
129.6 	of the total shares may repay the refund taken and thereupon
129.7 	restore the service credit, rights and benefits forfeited by
129.8 	paying into the fund the amount refunded plus interest at an
129.9 	annual rate of 8.5 percent compounded annually from the date
129.10 	that the refund was taken until the date that the refund is
129.11 	repaid.  If the participant had withdrawn only the employee
129.12 	shares as permitted under prior laws, repayment shall must be
129.13 	pro rata. Payment shall 
129.14 	(c) Except as provided in section 356.441, the repayment of
129.15 	a refund under this section must be made in a lump sum.

129.16 	Sec. 35. Minnesota Statutes 2004, section 352D.085,
129.17 	subdivision 1, is amended to read:
129.18 		Subdivision 1.Combined service. Except as provided in
129.19 	section 356.30, 356.302, or 356.303,service under the
129.20 	unclassified program for which the employee has been credited
129.21 	with employee shares may be used for the limited purpose of
129.22 	qualifying for benefits under sections 352.115, 352.72,
129.23 	subdivision 1, 352.113, 354.44, 354.45, 354.48, and 354.60;
129.24 	provided such .  The service also may not be used to qualify for
129.25 	a disability benefit under section 352.113 or 354.48 if a
129.26 	participant was under the unclassified program at the time of
129.27 	the disability, and provided further that .  Also,the years of
129.28 	service and salary paid while the participant was in the
129.29 	unclassified program shall may not be used in determining the
129.30 	amount of benefits.

129.31 	Sec. 36. Minnesota Statutes 2004, section 352D.09,
129.32 	subdivision 5, is amended to read:
129.33 		Subd. 5.Unclaimed benefits.  If the beneficiary,
129.34 	surviving spouse or estate has not made application for benefits
129.35 	within ten years after the date of the death of a participant,
129.36 	the value of the shares shall be is appropriated to the regular 
130.1 	general state employees retirement fund and the provisions of
130.2 	section 352.12, subdivision 12shall ,govern.  If a former
130.3 	participant fails to make a claim for benefits within five years
130.4 	after the termination of covered service or by age 70, whichever
130.5 	is later, the value of the shares shall be is appropriated to
130.6 	the general state employees retirement fund and the provisions
130.7 	of section 352.22, subdivision 8, shall apply.

130.8 	Sec. 37. Minnesota Statutes 2004, section 352D.12, is
130.9 	amended to read:
130.10 	352D.12 TRANSFER OF PRIOR SERVICE CONTRIBUTIONS.
130.11 	(a) An employee who is a participant in the unclassified
130.12 	program and who has prior service credit in a covered plan under
130.13 	chapters 3A,chapter 352, 352C,353, 354, 354A, and or 422A
130.14 	may, within the time limits specified in this section, elect to
130.15 	transfer to the unclassified program prior service contributions
130.16 	to one or more of those plans. Participants with six or more
130.17 	years of prior service credit in a plan governed by chapter 3A
130.18 	or 352C on July 1, 1998, may not transfer prior service
130.19 	contributions.  Participants with less than six years of prior
130.20 	service credit in a plan governed by chapter 3A or 352C on July
130.21 	1, 1998, must be contributing to the unclassified plan on or
130.22 	after January 5, 1999, in order to transfer prior contributions.
130.23 	(b) For participants with prior service credit in a plan
130.24 	governed by chapter 352, 353, 354, 354A, or 422A, "prior service
130.25 	contributions" means the accumulated employee and equal employer
130.26 	contributions with interest at an annual rate of 8.5 percent
130.27 	compounded annually, based on fiscal year balances. For
130.28 	participants with less than six years of service credit as of
130.29 	July 1, 1998, and with prior service credit in a plan governed
130.30 	by chapter 3A or 352C, "prior service contributions" means an
130.31 	amount equal to twice the amount of the accumulated member
130.32 	contributions plus annual compound interest at the rate of 8.5
130.33 	percent, computed on fiscal year balances.
130.34 	(c) If a participant has taken a refund from a retirement
130.35 	plan listed in this section, the participant may repay the
130.36 	refund to that plan, notwithstanding any restrictions on
131.1 	repayment to that plan, plus 8.5 percent interest compounded
131.2 	annually and have the accumulated employee and equal employer
131.3 	contributions transferred to the unclassified program with
131.4 	interest at an annual rate of 8.5 percent compounded annually
131.5 	based on fiscal year balances.  If a person repays a refund and
131.6 	subsequently elects to have the money transferred to the
131.7 	unclassified program, the repayment amount, including interest,
131.8 	is added to the fiscal year balance in the year which the
131.9 	repayment was made.
131.10 	(d) A participant electing to transfer prior service
131.11 	contributions credited to a retirement plan governed by chapter
131.12 	352, 353, 354, 354A, or 422A as provided under this section must
131.13 	complete the a written application for the transfer and repay
131.14 	any refund within one year of the commencement of the employee's
131.15 	participation in the unclassified program. A participant
131.16 	electing to transfer prior service contributions credited to a
131.17 	retirement plan governed by chapter 3A or 352C as provided under
131.18 	this section must complete the application for the transfer and
131.19 	repay any refund between January 5, 1999, and June 1, 1999, if
131.20 	the employee commenced participation in the unclassified program
131.21 	before January 5, 1999, or within one year of the commencement
131.22 	of the employee's participation in the unclassified program if
131.23 	the employee commenced participation in the unclassified program
131.24 	after January 4, 1999.

131.25 	Sec. 38. Minnesota Statutes 2004, section 353.01,
131.26 	subdivision 32, is amended to read:
131.27 		Subd. 32.Coordinated member.  "Coordinated member" means
131.28 	any a public employee, including any a public hospital employee,
131.29 	who is covered by any an agreement or modification made between
131.30 	the state and the Secretary of Health, Education and Welfare 
131.31 	Human Services, making the provisions of the federal Old Age,
131.32 	Survivors and Disability Insurance Act applicable to the member
131.33 	if the membership eligibility criteria are met under this
131.34 	chapter.  A coordinated member also is a former basic member who
131.35 	has a complete and continuous separation for at least 30 days
131.36 	from employment as a public employee meeting the requirements
132.1 	specified in subdivision 28, paragraphs (a) and (b), and who
132.2 	reenters public service as a public employee and meets the
132.3 	membership eligibility criteria under this chapter.

132.4 	Sec. 39. Minnesota Statutes 2004, section 353.01,
132.5 	subdivision 33, is amended to read:
132.6 		Subd. 33.Basic member.  "Basic member" means any a 
132.7 	public employee, including any a public hospital employee, who
132.8 	is not covered by any agreement or modification made between the
132.9 	state and the Secretary of Health, Education and Welfare Human
132.10 	Services.

132.11 	Sec. 40. Minnesota Statutes 2004, section 353.025, is
132.12 	amended to read:
132.13 	353.025 RANGE ASSOCIATION OF MUNICIPALITIES AND SCHOOLS.
132.14 	From and after January 1, 1982,Employees of the Range
132.15 	Association of Municipalities and Schools hereinafter referred
132.16 	to as the association, shall become are coordinated members of
132.17 	the general employees retirement plan of the Public Employees
132.18 	Retirement Association unless specifically exempt under section
132.19 	353.01, subdivision 2b, and .The Range Association shall be
132.20 	deemed to be of Municipalities and Schools is a governmental
132.21 	subdivision for the purposes of this chapter.

132.22 	Sec. 41. Minnesota Statutes 2004, section 353.026, is
132.23 	amended to read:
132.24 	353.026 COVERAGE FOR CERTAIN MUNICIPAL AND SCHOOL DISTRICT
132.25 	EMPLOYEES.
132.26 	Any person who was employed by the city of Minneapolis,
132.27 	Special School District No. 1, or public corporation as defined
132.28 	in section 422A.01, subdivision 9, on or after July 1, 1978,and
132.29 	prior to before July 1, 1979, and who was excluded from
132.30 	retirement coverage by the coordinated program of the
132.31 	Minneapolis municipal employees retirement fund pursuant to 
132.32 	under section 422A.09, subdivision 3, shall be is entitled to
132.33 	retirement coverage by the general employees retirement plan of
132.34 	the Public Employees Retirement Association unless specifically
132.35 	excluded pursuant to under section 353.01, subdivision 2b, from
132.36 	and after May 19, 1981.

133.1 	Sec. 42. Minnesota Statutes 2004, section 353.027, is
133.2 	amended to read:
133.3 	353.027 RETENTION OF COVERAGE FOR CERTAIN MUNICIPAL COURT
133.4 	EMPLOYEES.
133.5 	Any person employed on January 1, 1975, by a municipal
133.6 	court established pursuant to under Minnesota Statutes 1957,
133.7 	section 488.03,and located in the cities of New Brighton,
133.8 	Roseville, Maplewood, North Saint Paul, White Bear Lake,or St.
133.9 	Paul shall be is eligible for membership in the general
133.10 	employees retirement plan of the Public Employees Retirement
133.11 	Association and shall retain retains any rights or benefits the
133.12 	person had attained as a member of the general employees
133.13 	retirement plan of the association on January 1, 1975, so long
133.14 	as the person remains an employee of the municipal court of
133.15 	Ramsey County.

133.16 	Sec. 43. Minnesota Statutes 2004, section 353.028, is
133.17 	amended to read:
133.18 	353.028 CITY MANAGERS; ELECTION; DEFERRED COMPENSATION.
133.19 		Subdivision 1.Definitions. (a) For purposes of this
133.20 	section, each of the terms in this subdivision has the meaning
133.21 	indicated.
133.22 	(b) "City manager" means (1) a person who is duly appointed
133.23 	to and is holding the position of city manager in a Plan B
133.24 	statutory city or in a home rule city operating under the
133.25 	"council-manager" form of government, or (2) a person who is 
133.26 	appointed to and is holding the position of chief administrative
133.27 	officer of a home rule charter city or a statutory city pursuant
133.28 	to under a charter provision, ordinance, or resolution
133.29 	establishing such a position and prescribing its duties and
133.30 	responsibilities.
133.31 	(c) "Governing body" means the city council of the city
133.32 	employing the city manager.
133.33 	(d) "Election" means the election described in subdivision
133.34 	2.
133.35 		Subd. 2.Election. (a) A city manager may elect to be
133.36 	excluded from membership in the general employees retirement
134.1 	plan of the Public Employees Retirement Association.  The
134.2 	election of exclusion must be made within six months following
134.3 	the commencement of employment, must be made in writing on a
134.4 	form prescribed by the executive director, and must be approved
134.5 	by a resolution of adopted by the governing body of the city.
134.6 	The election of exclusion is not effective until it is filed
134.7 	with the executive director.  Membership of a city manager in
134.8 	the association general employees retirement plan ceases on the
134.9 	date the written election is received by the executive director
134.10 	or upon a later date specified.  Employee and employer
134.11 	contributions made on behalf of a person exercising the option
134.12 	to be excluded from membership under this section must be
134.13 	refunded in accordance with section 353.27, subdivision 7.
134.14 	(b) A city manager who has elected exclusion under this
134.15 	subdivision may elect to revoke that action by filing a written
134.16 	notice with the executive director.  The notice must be on a
134.17 	form prescribed by the executive director and must be approved
134.18 	by a resolution of the governing body of the city.  Membership
134.19 	of the city manager in the association resumes prospectively
134.20 	from the date of the first day of the pay period for which
134.21 	contributions were deducted or, if pay period coverage dates are
134.22 	not provided, the date on which the notice of revocation or
134.23 	contributions are received in the office of the association,
134.24 	provided that the notice of revocation is received by the
134.25 	association within 60 days of the receipt of contributions.
134.26 	(c) An election under paragraph (b) is irrevocable.  Any
134.27 	election under paragraph (a) or (b) must include a statement
134.28 	that the individual will not seek authorization to purchase
134.29 	service credit for any period of excluded service.
134.30 		Subd. 3.Deferred compensation; city contribution. If an
134.31 	election of exclusion is made, and if the city manager and the
134.32 	governing body of the city additionally agree in writing that
134.33 	the additional compensation is to be deferred and shall is to be
134.34 	contributed on behalf of the city manager to a deferred
134.35 	compensation program which meets the requirements of section 457
134.36 	of the Internal Revenue Code of 1954 1986, as amended through
135.1 	December 31, 1980, the governing body may compensate the city
135.2 	manager, in addition to the salary allowed under any limitation
135.3 	imposed on salaries by law or charter, in an amount equal to the
135.4 	employer contribution which would be required by section 353.27,
135.5 	subdivision 3, if the city manager were a member of the
135.6 	association general employees retirement plan.
135.7 		Subd. 4.Refunds; deferred annuity. A city manager who
135.8 	makes an election to be excluded from membership is entitled to
135.9 	a refund of accumulated deductions or, if otherwise qualified, a
135.10 	deferred annuity in the manner provided by under section 353.34,
135.11 	at the option of the manager.
135.12 		Subd. 5.Election; other employment. If a city manager
135.13 	who has made an election to be excluded subsequently accepts
135.14 	employment in another governmental subdivision or subsequently 
135.15 	accepts employment other than as a city manager in the same
135.16 	city, the election shall be deemed to have been is rescinded on
135.17 	the effective date of employment.

135.18 	Sec. 44. Minnesota Statutes 2004, section 353.14, is
135.19 	amended to read:
135.20 	353.14 BENEFITS FROM OTHER FUNDS.
135.21 	No annuity or benefit provided by this chapter shall may be
135.22 	affected, diminished, or impaired by any pension, benefit, or
135.23 	annuity which any member or survivor is entitled to receive from
135.24 	a tax supported public retirement plan or system authorized by
135.25 	any other law, for based on service that is different service
135.26 	than the service for which the member or survivor is entitled to
135.27 	receive benefit or annuity from a retirement plan administered
135.28 	by the Public Employees Retirement Association.

135.29 	Sec. 45. Minnesota Statutes 2004, section 353.15,
135.30 	subdivision 1, is amended to read:
135.31 		Subdivision 1.Exemption; exceptions. No money, annuity,
135.32 	or benefit provided for in this chapter is assignable or subject
135.33 	to execution, levy, attachment, garnishment, or legal process,
135.34 	except as provided in subdivision 2 or section 518.58, 518.581,
135.35 	or 518.6111.The provisions of section 356.401 apply to the
135.36 	general employees retirement plan, to the public employees
136.1 	police and fire retirement plan, and to the local government
136.2 	correctional service retirement plan.

136.3 	Sec. 46. Minnesota Statutes 2004, section 353.15,
136.4 	subdivision 3, is amended to read:
136.5 		Subd. 3.Payment to public bodies.  If,in the judgment
136.6 	of the executive director,conditions so warrant, payment of an
136.7 	annuity, a retirement benefit, or a refund may be made to a
136.8 	public body in behalf of an annuitant, disabilitant, or survivor
136.9 	upon such terms as the executive director may prescribe.

136.10 	Sec. 47. Minnesota Statutes 2004, section 353.27,
136.11 	subdivision 11, is amended to read:
136.12 		Subd. 11.Employers; required to furnish requested
136.13 	information. (a) All governmental subdivisions shall furnish
136.14 	promptly such other information relative to the employment
136.15 	status of all employees or former employees, including,but not
136.16 	limited to,payroll abstracts pertaining to all past and present
136.17 	employees, as may be requested by the association or its 
136.18 	executive director, including schedules of salaries applicable
136.19 	to various categories of employment.
136.20 	(b) In the event payroll abstract records have been lost or
136.21 	destroyed, for whatever reason or in whatever manner, so that
136.22 	such schedules of salaries cannot be furnished therefrom, the
136.23 	employing governmental subdivision, in lieu thereof, shall
136.24 	furnish to the association an estimate of the earnings of any
136.25 	employee or former employee for any period as may be requested
136.26 	by the association or its executive director. Should If the
136.27 	association receive such schedules is provided a schedule of
136.28 	estimated earnings, the executive director is hereby authorized
136.29 	to use the same as a basis for making whatever computations
136.30 	might be necessary for determining obligations of the employee
136.31 	and employer to the retirement fund.  If estimates are not
136.32 	furnished by the employer pursuant to at the request of the
136.33 	association or its executive director, the association executive
136.34 	director may estimate the obligations of the employee and
136.35 	employer to the retirement fund based upon such those records as 
136.36 	that are in its possession. Where payroll abstracts have been
137.1 	lost or destroyed, the governmental agency need not furnish any
137.2 	information pertaining to employment prior to July 1, 1963.  The
137.3 	association shall make no estimate of any obligation of any
137.4 	employee, former employee, or employer covering employment prior
137.5 	to July 1, 1963.

137.6 	Sec. 48. Minnesota Statutes 2004, section 353.271, is
137.7 	amended to read:
137.8 	353.271 PARTICIPATION IN MINNESOTA POSTRETIREMENT
137.9 	INVESTMENT FUND.
137.10 		Subdivision 1.Authorization. The general employees
137.11 	retirement plan of the Public Employees Retirement Association,
137.12 	including the public employees police and fire fund but
137.13 	excluding the various local relief association consolidation
137.14 	accounts, is retirement plan, and the local government
137.15 	correctional service retirement plan are authorized to
137.16 	participate in the Minnesota postretirement investment fund.
137.17 	There shall be is one general participation in the Minnesota
137.18 	postretirement investment fund for all purposes by each plan of 
137.19 	the Public Employees Retirement fund and one general
137.20 	participation in the Minnesota postretirement investment fund
137.21 	for all purposes by the public employees police and fire
137.22 	fund Association.
137.23 		Subd. 2.Valuation of assets; adjustment of benefits.
 137.24 	(1) (a) The required reserves for retirement annuities payable
137.25 	as provided in this chapter other than those payable from the
137.26 	various local relief association consolidation accounts, as
137.27 	determined in accordance with the appropriate mortality table
137.28 	adopted by the board of trustees based on the experience of the
137.29 	fund as recommended by the actuary retained by the Legislative
137.30 	Commission on Pensions and Retirement under section 356.214, and
137.31 	approved under section 356.215, subdivision 18, and using the
137.32 	postretirement interest assumption specified in section 356.215,
137.33 	subdivision 8, shall must be transferred to the Minnesota
137.34 	postretirement investment fund as of the last business day of
137.35 	the month in which the retirement annuity begins.
137.36 	(2) (b) Annuity payments other than those payable from the
138.1 	various local relief association consolidation accounts
138.2 	shall must be adjusted in accordance with the provisions of
138.3 	section 11A.18.
138.4 	(3) (c) Increases in payments pursuant to under this
138.5 	section or from the various local relief association
138.6 	consolidation accounts, if applicable, will must be made
138.7 	automatically unless the intended recipient files written notice
138.8 	with the executive director of the Public Employees Retirement
138.9 	Association requesting that the increase shall not be made.

138.10 	Sec. 49. Minnesota Statutes 2004, section 353.31,
138.11 	subdivision 1c, is amended to read:
138.12 		Subd. 1c.Coordinated members.  Except for benefits
138.13 	provided under section 353.32, subdivisions 1 and 1a,no
138.14 	survivor benefits are payable to the surviving spouse or
138.15 	dependent children of a deceased coordinated member.

138.16 	Sec. 50. Minnesota Statutes 2004, section 353.32,
138.17 	subdivision 9, is amended to read:
138.18 		Subd. 9.Payment to a minor.  If a member or former
138.19 	member dies having named as beneficiary a person who is a minor
138.20 	at the time of the application for refund, the board may make
138.21 	the payment (a) (1) directly to the minor, (b) (2) to any 
138.22 	a person who has legally qualified and is acting as guardian of
138.23 	the minor's person or property in any jurisdiction, or (c) (3) 
138.24 	to either parent of the minor or to any an adult person with
138.25 	whom the minor may at the time be living, provided only that .
138.26 	The parent or other person to whom any amount is to be
138.27 	paid shall have advised must advise the board in writing that
138.28 	the amount will be held or used in trust for the benefit of such
138.29 	minor.  Any annuity or disability benefit payable at the time of
138.30 	death of an annuitant or recipient of a disability benefit,
138.31 	which is payable to a beneficiary who is a minor, may be paid in
138.32 	the same manner. Such The payment shall be is a bar to recovery
138.33 	by any other person or persons.

138.34 	Sec. 51. Minnesota Statutes 2004, section 353.33,
138.35 	subdivision 12, is amended to read:
138.36 		Subd. 12.Basic disability survivor benefits.  If a basic
139.1 	member who is receiving a disability benefit under subdivision 3:
139.2 	(a) (1) dies before attaining age 65 or within five years
139.3 	of the effective date of the disability, whichever is later, the
139.4 	surviving spouse shall is entitled to receive a survivor benefit
139.5 	under section 353.31, unless the surviving spouse elected to
139.6 	receive a refund under section 353.32, subdivision 1.;
139.7 	(b) (2) is living at age 65 or five years after the
139.8 	effective date of the disability, whichever is later, the basic
139.9 	member may continue to receive a normal disability benefit, or
139.10 	elect a joint and survivor optional annuity under section
139.11 	353.31, subdivision 1b.  The election of the joint and survivor
139.12 	optional annuity must occur within 90 days of attaining age 65
139.13 	or of reaching the five-year anniversary of the effective date
139.14 	of the disability benefit, whichever is later.  The optional
139.15 	annuity takes effect on the first day of the month following the
139.16 	month in which the person attains age 65 or reaches the
139.17 	five-year anniversary of the effective date of the disability
139.18 	benefit, whichever is later.; or 
139.19 	(c) (3) if there is a dependent child or children under
139.20 	paragraph (a) or (b) clause (1) or (2), the association shall
139.21 	grant dependent child is entitled to a dependent child benefit
139.22 	under section 353.31, subdivision 1b, paragraph (b).

139.23 	Sec. 52. Minnesota Statutes 2004, section 354.091, is
139.24 	amended to read:
139.25 	354.091 SERVICE CREDIT.
139.26 	(a) In computing service credit, no teacher shall may 
139.27 	receive credit for more than one year of teaching service for
139.28 	any fiscal year. Commencing July 1, 1961 Additionally, in
139.29 	crediting allowable service:
139.30 	(1) if a teacher teaches less than five hours in a day,
139.31 	service credit must be given for the fractional part of the day
139.32 	as the term of service performed bears to five hours;
139.33 	(2) if a teacher teaches five or more hours in a day,
139.34 	service credit must be given for only one day;
139.35 	(3) if a teacher teaches at least 170 full days in any
139.36 	fiscal year, service credit must be given for a full year of
140.1 	teaching service; and
140.2 	(4) if a teacher teaches for only a fractional part of the
140.3 	year, service credit must be given for such fractional part of
140.4 	the year in the same relationship as the period of service
140.5 	performed bears to 170 days.
140.6 	(b) A teacher shall must receive a full year of service
140.7 	credit based on the number of days in the employer's full school
140.8 	year if it that school year is less than 170 days.  Teaching
140.9 	service performed before July 1, 1961, must be computed under
140.10 	the law in effect at the time it was performed.
140.11 	(c) A teacher must not lose or gain retirement service
140.12 	credit as a result of the employer converting to a flexible or
140.13 	alternate work schedule.  If the employer converts to a flexible
140.14 	or alternate work schedule, the forms for reporting teaching
140.15 	service and the procedures for determining service credit must
140.16 	be determined by the executive director with the approval of the
140.17 	board of trustees.
140.18 	(d) For all services rendered on or after July 1, 2003,
140.19 	service credit for all members employed by the Minnesota State
140.20 	Colleges and Universities system must be determined:
140.21 	(1) for full-time employees, by the definition of full-time
140.22 	employment contained in the collective bargaining agreement for
140.23 	those units listed in section 179A.10, subdivision 2, or
140.24 	contained in the applicable personnel or salary plan for those
140.25 	positions designated in section 179A.10, subdivision 1;
140.26 	(2) for part-time employees, by the appropriate proration
140.27 	of full-time equivalency based on the provisions contained in
140.28 	the collective bargaining agreement for those units listed in
140.29 	section 179A.10, subdivision 2, or contained in the applicable
140.30 	personnel or salary plan for those positions designated in
140.31 	section 179A.10, subdivision 1, and the applicable procedures of
140.32 	the Minnesota State Colleges and Universities system; and
140.33 	(3) in no case may a member receive more than one year of
140.34 	service credit for any fiscal year.

140.35 	Sec. 53. Minnesota Statutes 2004, section 354.10,
140.36 	subdivision 1, is amended to read:
141.1 		Subdivision 1.Exemption; exceptions. (a) The provisions
141.2 	of section 356.401 apply to the teachers retirement plan.
141.3 	(b) The right of a teacher to take advantage of the
141.4 	benefits provided by this chapter, is a personal right only and
141.5 	is not assignable.  All money to the credit of a teacher's
141.6 	account in the fund or any money payable to the teacher from the
141.7 	fund belongs to the state of Minnesota until actually paid to
141.8 	the teacher or a beneficiary under this chapter.
141.9 	(c) The association may acknowledge a properly completed
141.10 	power of attorney form. An assignment or attempted assignment
141.11 	of a teacher's interest in the fund, or of the beneficiary's
141.12 	interest in the fund, by a teacher or a beneficiary is void and
141.13 	exempt from garnishment or levy under attachment or execution,
141.14 	except as provided in subdivision 2 or 3, or section 518.58,
141.15 	518.581, or 518.6111.

141.16 	Sec. 54. Minnesota Statutes 2004, section 354.10,
141.17 	subdivision 3, is amended to read:
141.18 		Subd. 3.Payment to public bodies.  If,in the judgment
141.19 	of the executive director,conditions so warrant, payment of an
141.20 	annuity, a retirement benefit, or a refund may be made to a
141.21 	public body in behalf of an annuitant, disabilitant, or survivor
141.22 	upon such terms as the executive director may prescribe.

141.23 	Sec. 55. Minnesota Statutes 2004, section 354.10,
141.24 	subdivision 4, is amended to read:
141.25 		Subd. 4.Changes in designated beneficiaries. Any (a) A 
141.26 	beneficiary designated by a retiree or member under section
141.27 	354.05, subdivision 22, may be changed or revoked by the retiree
141.28 	or member on a form provided by the executive director.
141.29 	(b) A change or revocation made under this subdivision is
141.30 	valid only if the properly completed form is received by the
141.31 	association on or before the date of death of the retiree or the
141.32 	member.
141.33 	(c) If a designated beneficiary dies before the retiree or
141.34 	member designating the beneficiary,and a new beneficiary is not
141.35 	designated, the retiree's or member's estate is the beneficiary.

141.36 	Sec. 56. Minnesota Statutes 2004, section 354.33,
142.1 	subdivision 5, is amended to read:
142.2 		Subd. 5.Retirees not eligible for federal benefits.
 142.3 	Notwithstanding the provisions of section 354.55, subdivision 3,
142.4 	when any person retires after July 1, 1973,who (a) (1) has ten
142.5 	or more years of allowable service, and (b) (2) does not have
142.6 	any retroactive Social Security coverage by reason of the
142.7 	person's position in the retirement system, and (c) (3) does not
142.8 	qualify for federal old age and survivor primary benefits at the
142.9 	time of retirement, the annuity shall must be computed under
142.10 	section 354.44, subdivision 2,of the law in effect on June 30,
142.11 	1969, except that accumulations after June 30, 1957, shall must 
142.12 	be calculated using the same mortality table and interest
142.13 	assumption as are used to transfer the required reserves to the
142.14 	Minnesota postretirement investment fund.

142.15 	Sec. 57. Minnesota Statutes 2004, section 354.39, is
142.16 	amended to read:
142.17 	354.39 EFFECTIVE DATE; APPLICATION.
142.18 	After July 1, 1971, any A member of the Teachers Retirement
142.19 	Association who is employed in a new state university and or any 
142.20 	other new institutions institution of higher learning not
142.21 	included in any agreement or modification made between the state
142.22 	and the federal Secretary of Health, Education and Welfare Human
142.23 	Services, making the provisions of the federal Old Age and ,
142.24 	Survivors and Disability Insurance Act applicable to such
142.25 	members, shall must be covered under the provisions of this
142.26 	chapter applicable to coordinated members.

142.27 	Sec. 58. Minnesota Statutes 2004, section 354.41,
142.28 	subdivision 2, is amended to read:
142.29 		Subd. 2.Teachers.  Every teacher after June 30, 1957,in
142.30 	the service or entering the service of the state or one of its
142.31 	governmental subdivision subdivisions as a teacher, except
142.32 	persons specially specifically excluded, shall must become a
142.33 	member of the association by the acceptance of such employment.

142.34 	Sec. 59. Minnesota Statutes 2004, section 354.42, is
142.35 	amended by adding a subdivision to read:
142.36 		Subd. 1a.Teachers retirement fund. (a) Within the
143.1 	Teachers Retirement Association and the state treasury is
143.2 	created a special retirement fund, which must include all the
143.3 	assets of the Teachers Retirement Association and all revenue of
143.4 	the association.  The fund is the continuation of the fund
143.5 	established under Laws 1931, chapter 406, section 2,
143.6 	notwithstanding the repeal of Minnesota Statutes 1973, section
143.7 	354.42, subdivision 1, by Laws 1974, chapter 289, section 59.
143.8 	(b) The teachers retirement fund must be credited with all
143.9 	employee and employer contributions, all investment revenue and
143.10 	gains, and all other income authorized by law.
143.11 	(c) From the teachers retirement fund is appropriated the
143.12 	payments of annuities and benefits authorized by this chapter,
143.13 	the transfers to the Minnesota postretirement investment fund,
143.14 	and the reasonable and necessary expenses of administering the
143.15 	fund and the association.

143.16 	Sec. 60. Minnesota Statutes 2004, section 354.44,
143.17 	subdivision 2, is amended to read:
143.18 		Subd. 2.Computation of money purchase annuity. (a) The
143.19 	amount of retirement annuity is an amount equal to double the
143.20 	annuity which could be purchased by the member's accumulated
143.21 	deductions plus interest thereon.  The annuity shall must be
143.22 	determined by the member's age, sex, double the amount of
143.23 	accumulated deductions, double the amount of interest earned on
143.24 	the accumulated deductions, and the appropriate mortality tables
143.25 	and interest rates.  To determine the amount of the annuity for
143.26 	a basic member, the accumulated deductions prior to before July
143.27 	1, 1957, and the accumulated deductions subsequent to after July
143.28 	1, 1957, shall must be considered separately.
143.29 	(1) (b) For service rendered prior to before July 1, 1957,
143.30 	the accumulated deductions for any a member shall must be
143.31 	carried forward at a fixed amount which is shown credited to the
143.32 	member's account as of that date.  That fixed amount shall must 
143.33 	also include any payments in lieu of salary deductions which are
143.34 	to be made in the future and are were actually so made pursuant
143.35 	to under an agreement executed between the member and the board
143.36 	as authorized by section 354.50 or any other authorized payments
144.1 	made by the member to the fund.  The annuity granted with
144.2 	respect to the period shall must be determined as follows:
144.3 	(a) (1) the fixed amount of the accumulated deductions for
144.4 	the period including the interest credited on the amount as
144.5 	earned up to July 1, 1957.; and 
144.6 	(b) (2) annuity purchase rates based on the applicable
144.7 	mortality table established by the board and the interest rate
144.8 	assumption in effect prior to before July 1, 1957, in the case
144.9 	of basic members and an annuity purchase rate based on an
144.10 	appropriate annuity table of mortality established by the board
144.11 	as provided in section 354.07, subdivision 1, and using the
144.12 	applicable postretirement interest rate assumption specified in
144.13 	section 356.215, subdivision 8, in the case of coordinated
144.14 	members.
144.15 	(2) (c) For service rendered subsequent to after July 1,
144.16 	1957, the accumulated deductions for any a member shall must 
144.17 	consist of the amounts actually credited to the member's account
144.18 	by reason of salary deductions.  The annuity granted with
144.19 	respect to the period shall must be determined by the following:
144.20 	(a) (1) accumulated deductions for the period;
144.21 	(b) (2) interest credited on these accumulated deductions
144.22 	from July 1, 1957, to the date of retirement;
144.23 	(c) (3) interest credited on accumulated deductions
144.24 	including prior credited interest provided in paragraph (1) (b) 
144.25 	from July 1, 1957, to the date of retirement;
144.26 	(d) (4) after the amount available for an annuity granted
144.27 	with respect to the person is determined in accordance with the
144.28 	provisions of this subdivision, an additional amount equal to 20
144.29 	percent of the sum of clause (2)(a) (1) plus interest credited
144.30 	to members a member's account from July 1, 1957, to date of
144.31 	retirement is to be added.  This added amount is not to be
144.32 	doubled as provided for other amounts determined in this
144.33 	subdivision; and 
144.34 	(e) (5) the annuity purchase rate based on an appropriate
144.35 	annuity table of mortality established by the board as provided
144.36 	in section 354.07, subdivision 1, and using the applicable
145.1 	postretirement interest rate assumption specified in section
145.2 	356.215, subdivision 8.

145.3 	Sec. 61. Minnesota Statutes 2004, section 354A.021,
145.4 	subdivision 5, is amended to read:
145.5 		Subd. 5.Tax sheltered annuity program and fund. Any A 
145.6 	teachers retirement fund association may establish a tax
145.7 	sheltered annuity program and fund meeting the requirements of
145.8 	section 403(b) of the Internal Revenue Code of 1986, as amended
145.9 	through December 31, 1992, which shall must include all assets
145.10 	which were acquired for the specific purpose of being credited
145.11 	to the program and fund and to which shall must be credited all
145.12 	employee contributions,and employer contributions,if
145.13 	negotiated under a collective bargaining agreement, designated
145.14 	for this purpose and all interest income attributable to the
145.15 	assets of the program and fund.

145.16 	Sec. 62. Minnesota Statutes 2004, section 354A.097,
145.17 	subdivision 1, is amended to read:
145.18 		Subdivision 1.Service credit purchase authorized.  A
145.19 	teacher who has at least three years of allowable service credit
145.20 	with the teachers retirement fund association and who performed
145.21 	service in the United States armed forces before becoming a
145.22 	teacher as defined in section 354A.011, subdivision 27, or who
145.23 	failed to obtain service credit for a military leave of absence
145.24 	period under section 354A.093, is entitled to purchase allowable
145.25 	service credit for the initial period of enlistment, induction,
145.26 	or call to active duty without any voluntary extension by making
145.27 	payment under section 356.55 provided 356.551 if the teacher has
145.28 	not purchased service credit from another Minnesota defined
145.29 	benefit public employee pension plan for the same period of
145.30 	service.

145.31 	Sec. 63. Minnesota Statutes 2004, section 354A.31,
145.32 	subdivision 5, is amended to read:
145.33 		Subd. 5.Unreduced normal retirement annuity.  Upon
145.34 	retirement at normal retirement age with at least three years of
145.35 	service credit, a coordinated member shall be is entitled to a
145.36 	normal retirement annuity calculated pursuant to under 
146.1 	subdivision 4 or 4a, whichever applies.

146.2 	Sec. 64. [356.401] EXEMPTION FROM PROCESS.
146.3 		Subdivision 1.Exemption; exceptions. None of the money,
146.4 	annuities, or other benefits provided for in the governing law
146.5 	of a covered retirement plan is assignable either in law or in
146.6 	equity or subject to state estate tax, or to execution, levy,
146.7 	attachment, garnishment, or other legal process, except as
146.8 	provided in subdivision 2 or section 518.58, 518.581, or
146.9 	518.6111.
146.10 		Subd. 2.Automatic deposits. (a) The chief
146.11 	administrative officer of a covered retirement plan may remit,
146.12 	through an automatic deposit system, annuity, benefit, or refund
146.13 	payments only to a financial institution associated with the
146.14 	National Automated Clearinghouse Association or a comparable
146.15 	successor organization that is trustee for a person who is
146.16 	eligible to receive the annuity, benefit, or refund.
146.17 	(b) Upon the request of a retiree, disabilitant, survivor,
146.18 	or former member, the chief administrative officer of a covered
146.19 	retirement plan may remit the annuity, benefit, or refund check
146.20 	to the applicable financial institution for deposit in the
146.21 	person's individual account or the person's joint account.  An
146.22 	overpayment to a joint account after the death of the annuitant
146.23 	or benefit recipient must be repaid to the fund of the
146.24 	applicable covered retirement plan by the joint tenant if the
146.25 	overpayment is not repaid to that fund by the financial
146.26 	institution associated with the National Automated Clearinghouse
146.27 	Association or its successor.  The governing board of the
146.28 	covered retirement plan may prescribe the conditions under which
146.29 	these payments may be made.
146.30 		Subd. 3.Covered retirement plans. The provisions of
146.31 	this section apply to the following retirement plans:
146.32 	(1) the legislators retirement plan, established by chapter
146.33 	3A;
146.34 	(2) the general state employees retirement plan of the
146.35 	Minnesota State Retirement System, established by chapter 352;
146.36 	(3) the correctional state employees retirement plan of the
147.1 	Minnesota State Retirement System, established by chapter 352;
147.2 	(4) the State Patrol retirement plan, established by
147.3 	chapter 352B;
147.4 	(5) the elective state officers retirement plan,
147.5 	established by chapter 352C;
147.6 	(6) the unclassified state employees retirement program,
147.7 	established by chapter 352D;
147.8 	(7) the general employees retirement plan of the Public
147.9 	Employees Retirement Association, established by chapter 353;
147.10 	(8) the public employees police and fire plan of the Public
147.11 	Employees Retirement Association, established by chapter 353;
147.12 	(9) the public employees defined contribution plan,
147.13 	established by chapter 353D;
147.14 	(10) the local government correctional service retirement
147.15 	plan of the Public Employees Retirement Association, established
147.16 	by chapter 353E;
147.17 	(11) the Teachers Retirement Association, established by
147.18 	chapter 354;
147.19 	(12) the Duluth Teachers Retirement Fund Association,
147.20 	established by chapter 354A;
147.21 	(13) the Minneapolis Teachers Retirement Fund Association,
147.22 	established by chapter 354A;
147.23 	(14) the St. Paul Teachers Retirement Fund Association,
147.24 	established by chapter 354A;
147.25 	(15) the individual retirement account plan, established by
147.26 	chapter 354B;
147.27 	(16) the higher education supplemental retirement plan,
147.28 	established by chapter 354C;
147.29 	(17) the Minneapolis employees retirement fund, established
147.30 	by chapter 422A;
147.31 	(18) the Minneapolis Police Relief Association, established
147.32 	by chapter 423B;
147.33 	(19) the Minneapolis Firefighters Relief Association,
147.34 	established by chapter 423C; and 
147.35 	(20) the judges retirement fund, established by sections
147.36 	490.121 to 490.132.

148.1 	Sec. 65. Minnesota Statutes 2004, section 356.551, is
148.2 	amended to read:
148.3 	356.551 POST JULY 1, 2003 2004, PRIOR SERVICE CREDIT
148.4 	PURCHASE PAYMENT AMOUNT DETERMINATION PROCEDURE.
148.5 		Subdivision 1.Application. (a) Unless the prior service
148.6 	credit purchase authorization special law or general statute
148.7 	provision explicitly specifies a different purchase payment
148.8 	amount determination procedure, and if section 356.55 has
148.9 	expired,this section governs the determination of the prior
148.10 	service credit purchase payment amount of any prior service
148.11 	credit purchase.
148.12 	(b) The purchase payment amount determination procedure
148.13 	must recognize any service credit accrued to the purchaser in a
148.14 	pension plan enumerated in section 356.30, subdivision 3.
148.15 	(c) Any service credit in a Minnesota defined benefit
148.16 	public employee pension plan available to be reinstated by the
148.17 	purchaser through the repayment of a refund of member or
148.18 	employee contributions previously received must be repaid in
148.19 	full before any purchase of prior service credit payment is made
148.20 	under this section.
148.21 		Subd. 2.Determination. (a) Unless the minimum purchase
148.22 	amount set forth in paragraph (c) applies,the prior service
148.23 	credit purchase amount is an amount equal to the actuarial
148.24 	present value, on the date of payment, as calculated by the
148.25 	chief administrative officer of the pension plan and reviewed by
148.26 	the actuary retained by the Legislative Commission on Pensions
148.27 	and Retirement under section 356.214, of the amount of the
148.28 	additional retirement annuity obtained by the acquisition of the
148.29 	additional service credit in this section.
148.30 	(b) Calculation of this amount must be made using the
148.31 	preretirement interest rate applicable to the public pension
148.32 	plan specified in section 356.215, subdivision 4d 8, and the
148.33 	mortality table adopted for the public pension plan.  The
148.34 	calculation must assume continuous future service in the public
148.35 	pension plan until, and retirement at, the age at which the
148.36 	minimum requirements of the fund for normal retirement or
149.1 	retirement with an annuity unreduced for retirement at an early
149.2 	age, including section 356.30, are met with the additional
149.3 	service credit purchased.  The calculation must also assume a
149.4 	full-time equivalent salary, or actual salary, whichever is
149.5 	greater, and a future salary history that includes annual salary
149.6 	increases at the applicable salary increase rate for the plan
149.7 	specified in section 356.215, subdivision 4d.
149.8 	(c) The prior service credit purchase amount may not be
149.9 	less than the amount determined by applying the current employee
149.10 	or member contribution rate, the employer contribution rate, and
149.11 	the additional employer contribution rate, if any, to the
149.12 	person's current annual salary and multiplying that result by
149.13 	the number of whole and fraction years of service to be
149.14 	purchased.
149.15 	(d) Payment must be made in one lump sum within one year of
149.16 	the prior service credit authorization.  Payment of the amount
149.17 	calculated under this section must be made by the applicable
149.18 	eligible person.
149.19 	(e) However, the current employer or the prior employer
149.20 	may, at its discretion, pay all or any portion of the payment
149.21 	amount that exceeds an amount equal to the employee contribution
149.22 	rates in effect during the period or periods of prior service
149.23 	applied to the actual salary rates in effect during the period
149.24 	or periods of prior service, plus interest at the rate of 8.5
149.25 	percent a year compounded annually from the date on which the
149.26 	contributions would otherwise have been made to the date on
149.27 	which the payment is made.  If the employer agrees to payments
149.28 	under this subdivision, the purchaser must make the employee
149.29 	payments required under this subdivision within 290 90 days of
149.30 	the prior service credit authorization.  If that employee
149.31 	payment is made, the employer payment under this subdivision
149.32 	must be remitted to the chief administrative officer of the
149.33 	public pension plan within 60 days of receipt by the chief
149.34 	administrative officer of the employee payments specified under
149.35 	this subdivision.
149.36 		Subd. 3.Documentation. The prospective prior service
150.1 	credit purchaser must provide any relevant documentation
150.2 	required by the chief administrative officer of the applicable 
150.3 	public pension plan to determine eligibility for the prior
150.4 	service credit under this section.
150.5 		Subd. 4.Payment precondition for credit grant. Service
150.6 	credit for the purchase period must be granted by the public
150.7 	pension plan to the purchaser upon receipt of the full purchase
150.8 	payment amount specified in subdivision 2.

150.9 	Sec. 66. Minnesota Statutes 2004, section 356A.06,
150.10 	subdivision 7, is amended to read:
150.11 		Subd. 7.Expanded list of authorized investment
150.12 	securities.  (a)  [AUTHORITY.] Except to the extent otherwise
150.13 	authorized by law or bylaws, a covered pension plan not
150.14 	described by subdivision 6, paragraph (a), may invest its assets
150.15 	only in accordance with this subdivision.
150.16 	(b)  [SECURITIES GENERALLY.] The covered pension plan has
150.17 	the authority to purchase, sell, lend, or exchange the
150.18 	securities specified in paragraphs (c) to (g), including puts
150.19 	and call options and future contracts traded on a contract
150.20 	market regulated by a governmental agency or by a financial
150.21 	institution regulated by a governmental agency.  These
150.22 	securities may be owned as units in commingled trusts that own
150.23 	the securities described in paragraphs (c) to (g).
150.24 	(c)  [GOVERNMENT OBLIGATIONS.] The covered pension plan may
150.25 	invest funds in governmental bonds, notes, bills, mortgages, and
150.26 	other evidences of indebtedness provided the issue is backed by
150.27 	the full faith and credit of the issuer or the issue is rated
150.28 	among the top four quality rating categories by a nationally
150.29 	recognized rating agency.  The obligations in which funds may be
150.30 	invested under this paragraph include guaranteed or insured
150.31 	issues of (1) the United States, its agencies, its
150.32 	instrumentalities, or organizations created and regulated by an
150.33 	act of Congress; (2) Canada and its provinces, provided the
150.34 	principal and interest is payable in United States dollars; (3)
150.35 	the states and their municipalities, political subdivisions,
150.36 	agencies, or instrumentalities; (4) the International Bank for
151.1 	Reconstruction and Development, the Inter-American Development
151.2 	Bank, the Asian Development Bank, the African Development Bank,
151.3 	or any other United States government sponsored organization of
151.4 	which the United States is a member, provided the principal and
151.5 	interest is payable in United States dollars.
151.6 	(d)  [CORPORATE OBLIGATIONS.] The covered pension plan may
151.7 	invest funds in bonds, notes, debentures, transportation
151.8 	equipment obligations, or any other longer term evidences of
151.9 	indebtedness issued or guaranteed by a corporation organized
151.10 	under the laws of the United States or any state thereof, or the
151.11 	Dominion of Canada or any province thereof if they conform to
151.12 	the following provisions:
151.13 	(1) the principal and interest of obligations of
151.14 	corporations incorporated or organized under the laws of the
151.15 	Dominion of Canada or any province thereof must be payable in
151.16 	United States dollars; and
151.17 	(2) obligations must be rated among the top four quality
151.18 	categories by a nationally recognized rating agency.
151.19 	(e)  [OTHER OBLIGATIONS.] (1) The covered pension plan may
151.20 	invest funds in bankers acceptances, certificates of deposit,
151.21 	deposit notes, commercial paper, mortgage participation
151.22 	certificates and pools, asset backed securities, repurchase
151.23 	agreements and reverse repurchase agreements, guaranteed
151.24 	investment contracts, savings accounts, and guaranty fund
151.25 	certificates, surplus notes, or debentures of domestic mutual
151.26 	insurance companies if they conform to the following provisions:
151.27 	(i) bankers acceptances and deposit notes of United States
151.28 	banks are limited to those issued by banks rated in the highest
151.29 	four quality categories by a nationally recognized rating
151.30 	agency;
151.31 	(ii) certificates of deposit are limited to those issued by
151.32 	(A) United States banks and savings institutions that are rated
151.33 	in the highest four quality categories by a nationally
151.34 	recognized rating agency or whose certificates of deposit are
151.35 	fully insured by federal agencies; or (B) credit unions in
151.36 	amounts up to the limit of insurance coverage provided by the
152.1 	National Credit Union Administration;
152.2 	(iii) commercial paper is limited to those issued by United
152.3 	States corporations or their Canadian subsidiaries and rated in
152.4 	the highest two quality categories by a nationally recognized
152.5 	rating agency;
152.6 	(iv) mortgage participation or pass through certificates
152.7 	evidencing interests in pools of first mortgages or trust deeds
152.8 	on improved real estate located in the United States where the
152.9 	loan to value ratio for each loan as calculated in accordance
152.10 	with section 61A.28, subdivision 3, does not exceed 80 percent
152.11 	for fully amortizable residential properties and in all other
152.12 	respects meets the requirements of section 61A.28, subdivision
152.13 	3;
152.14 	(v) collateral for repurchase agreements and reverse
152.15 	repurchase agreements is limited to letters of credit and
152.16 	securities authorized in this section;
152.17 	(vi) guaranteed investment contracts are limited to those
152.18 	issued by insurance companies or banks rated in the top four
152.19 	quality categories by a nationally recognized rating agency or
152.20 	to alternative guaranteed investment contracts where the
152.21 	underlying assets comply with the requirements of this
152.22 	subdivision;
152.23 	(vii) savings accounts are limited to those fully insured
152.24 	by federal agencies; and
152.25 	(viii) asset backed securities must be rated in the top
152.26 	four quality categories by a nationally recognized rating agency.
152.27 	(2) Sections 16A.58, 16C.03, subdivision 4, and 16C.05 do
152.28 	not apply to certificates of deposit and collateralization
152.29 	agreements executed by the covered pension plan under clause
152.30 	(1), item (ii).
152.31 	(3) In addition to investments authorized by clause (1),
152.32 	item (iv), the covered pension plan may purchase from the
152.33 	Minnesota Housing Finance Agency all or any part of a pool of
152.34 	residential mortgages, not in default, that has previously been
152.35 	financed by the issuance of bonds or notes of the agency.  The
152.36 	covered pension plan may also enter into a commitment with the
153.1 	agency, at the time of any issue of bonds or notes, to purchase
153.2 	at a specified future date, not exceeding 12 years from the date
153.3 	of the issue, the amount of mortgage loans then outstanding and
153.4 	not in default that have been made or purchased from the
153.5 	proceeds of the bonds or notes.  The covered pension plan may
153.6 	charge reasonable fees for any such commitment and may agree to
153.7 	purchase the mortgage loans at a price sufficient to produce a
153.8 	yield to the covered pension plan comparable, in its judgment,
153.9 	to the yield available on similar mortgage loans at the date of
153.10 	the bonds or notes.  The covered pension plan may also enter
153.11 	into agreements with the agency for the investment of any
153.12 	portion of the funds of the agency.  The agreement must cover
153.13 	the period of the investment, withdrawal privileges, and any
153.14 	guaranteed rate of return.
153.15 	(f)  [CORPORATE STOCKS.] The covered pension plan may
153.16 	invest funds in stocks or convertible issues of any corporation
153.17 	organized under the laws of the United States or the states
153.18 	thereof, the Dominion of Canada or its provinces, or any
153.19 	corporation listed on the New York Stock Exchange or the
153.20 	American Stock Exchange, if they conform to the following
153.21 	provisions:
153.22 	(1) the aggregate value of corporate stock investments, as
153.23 	adjusted for realized profits and losses, must not exceed 85
153.24 	percent of the market or book value, whichever is less, of a
153.25 	fund, less the aggregate value of investments according to
153.26 	subdivision 6 paragraph (g);
153.27 	(2) investments must not exceed five percent of the total
153.28 	outstanding shares of any one corporation.
153.29 	(g)  [OTHER INVESTMENTS.] (1) In addition to the
153.30 	investments authorized in paragraphs (b) to (f), and subject to
153.31 	the provisions in clause (2), the covered pension plan may
153.32 	invest funds in:
153.33 	(i) venture capital investment businesses through
153.34 	participation in limited partnerships and corporations;
153.35 	(ii) real estate ownership interests or loans secured by
153.36 	mortgages or deeds of trust through investment in limited
154.1 	partnerships, bank sponsored collective funds, trusts, and
154.2 	insurance company commingled accounts, including separate
154.3 	accounts;
154.4 	(iii) regional and mutual funds through bank sponsored
154.5 	collective funds and open-end investment companies registered
154.6 	under the Federal Investment Company Act of 1940;
154.7 	(iv) resource investments through limited partnerships,
154.8 	private placements, and corporations; and
154.9 	(v) international securities.
154.10 	(2) The investments authorized in clause (1) must conform
154.11 	to the following provisions:
154.12 	(i) the aggregate value of all investments made according
154.13 	to clause (1) may not exceed 35 percent of the market value of
154.14 	the fund for which the covered pension plan is investing;
154.15 	(ii) there must be at least four unrelated owners of the
154.16 	investment other than the state board for investments made under
154.17 	clause (1), item (i), (ii), (iii), or (iv);
154.18 	(iii) covered pension plan participation in an investment
154.19 	vehicle is limited to 20 percent thereof for investments made
154.20 	under clause (1), item (i), (ii), (iii), or (iv); and
154.21 	(iv) covered pension plan participation in a limited
154.22 	partnership does not include a general partnership interest or
154.23 	other interest involving general liability.  The covered pension
154.24 	plan may not engage in any activity as a limited partner which
154.25 	creates general liability.

154.26 	Sec. 67. Minnesota Statutes 2004, section 422A.01,
154.27 	subdivision 11, is amended to read:
154.28 		Subd. 11.Employee.  "Employee" means any a person who is 
154.29 	not exempted from the contributing class pursuant to under 
154.30 	section 422A.09, subdivision 3, who is was employed before July
154.31 	1, 1979,by and paid, in whole or in part, by the city or any of
154.32 	its boards, departments, or commissions, operated as a
154.33 	department of city government or independently if financed in
154.34 	whole or in part by city funds, including any a person who was 
154.35 	employed by a public corporation as herein defined, and
154.36 	including any a person who was employed before July 1, 1979,by
155.1 	Special School District No. 1, and who is not a member of any
155.2 	other retirement system, and also including any a person who is 
155.3 	was employed before July 1, 1973,by the county of Hennepin, who
155.4 	was entitled by law to elect and has elected to retain
155.5 	membership in the municipal Minneapolis Employees Retirement
155.6 	Fund and who makes any required member contributions to the fund
155.7 	and who remains so employed.

155.8 	Sec. 68. Minnesota Statutes 2004, section 422A.06,
155.9 	subdivision 7, is amended to read:
155.10 		Subd. 7.Disability benefit fund.  (a) The required
155.11 	reserves for disability allowances which become effective after
155.12 	December 31, 1973, shall be transferred from the deposit
155.13 	accumulation fund to the A disability benefit fund is
155.14 	established, containing the required reserves for disability
155.15 	allowances under this chapter.  A proportionate share of income
155.16 	from investments shall must be allocated to this fund.
155.17 	There shall must be paid from this fund the disability
155.18 	allowances which become effective after December 31, 1973 
155.19 	payable under this chapter.
155.20 	(b) In the event of the termination of any disability
155.21 	allowance for any reason other than the death of the recipient,
155.22 	the balance of the required reserves for the disability
155.23 	allowance as of the date of the termination shall must be
155.24 	transferred from the disability benefit fund to the deposit
155.25 	accumulation fund.
155.26 	(c) At the end of each fiscal year, as part of the annual
155.27 	actuarial valuation, a determination shall must be made of the
155.28 	required reserves for all disability allowances being paid from
155.29 	the disability benefit fund.  Any excess of assets over
155.30 	actuarial required reserves in the disability benefit fund shall 
155.31 	must be transferred to the deposit accumulation fund.  Any
155.32 	excess of actuarial reserves over assets in the disability
155.33 	benefit fund shall must be funded by a transfer of the
155.34 	appropriate amount of assets from the deposit accumulation fund.

155.35 	Sec. 69. Minnesota Statutes 2004, section 422A.10,
155.36 	subdivision 1, is amended to read:
156.1 		Subdivision 1.member contribution rate ; deductions. (a) 
156.2 	There shall must be deducted and withheld from the basic salary,
156.3 	pay or compensation of each employee in the contributing class,
156.4 	prior to January 1, 1980 an amount equal to 7-1/4 percent, after
156.5 	December 31, 1979 but prior to January 1, 1981 an amount equal
156.6 	to 8-1/4 percent and after December 31, 1980 an amount equal to
156.7 	9-1/4 percent of such salary, pay or compensation, except as
156.8 	hereinafter provided.
156.9 	(b) The retirement board may increase the percentage rate
156.10 	of contribution to the retirement fund of any employee or
156.11 	employees for the purpose of establishing and maintaining on an
156.12 	actuarial basis a plan of insurance, survivors' benefits, or
156.13 	other type of benefit or benefits, the cost of which shall must 
156.14 	be paid out of such extra percentage so authorized and deducted
156.15 	from the employee's compensation, except as hereinafter
156.16 	provided.  Any plan or plans so established and placed in
156.17 	operation may be amended from time to time, or may be abandoned,
156.18 	but if abandoned, any surplus remaining from the operation of a
156.19 	plan shall must be the property of the fund, and shall must be
156.20 	credited to the reserve for loss in investment account.

156.21 	Sec. 70. Minnesota Statutes 2004, section 422A.10,
156.22 	subdivision 2, is amended to read:
156.23 		Subd. 2.consent to deductions mandatory member
156.24 	contributions.  Every employee to whom sections 422A.01 to
156.25 	422A.25 this chapter applies who shall continue in the service
156.26 	after the passage of Laws 1919, chapter 522, as well as every
156.27 	person to whom sections 422A.01 to 422A.25 applies who may
156.28 	hereafter be appointed to a position or place, shall be is 
156.29 	deemed to consent and agree to the deductions made and provided
156.30 	for herein, and payment with such reductions, for service, shall
156.31 	be are a full and complete discharge and acquittance of all
156.32 	claims and demands for all services rendered by such person
156.33 	during the period covered by such payment; except the person's
156.34 	claim to the benefits to which the person may be entitled under
156.35 	the provisions of sections 422A.01 to 422A.25this chapter.

156.36 	Sec. 71. Minnesota Statutes 2004, section 422A.22,
157.1 	subdivision 1, is amended to read:
157.2 		Subdivision 1.Retention; transfer. (a) If an employee
157.3 	to whom sections 422A.01 to 422A.25this chapter applies becomes
157.4 	absolutely separated from the active service prior to before 
157.5 	attaining the minimum retirement age established in section
157.6 	422A.13, the employee is entitled to a refund of the net
157.7 	accumulated amount of deduction from salary, pay, or
157.8 	compensation, made for the purpose of accumulating a fund from
157.9 	which to pay retirement allowances, shall be returned to such
157.10 	employee,with interest at the annual compound rate of six
157.11 	percent.
157.12 	(b) Any contributing employee who separates from a
157.13 	department, board or commission of the city whose employees are
157.14 	covered by a fund organized under sections 422A.01 to 422A.25
157.15 	this chapter, and becomes an employee of a department or board
157.16 	of the same city, whose employees are covered by a retirement
157.17 	fund or relief association by whatever name known, organized
157.18 	under any other law and supported in whole or in part by taxes
157.19 	on the same city, shall have has the option of:
157.20 	(1) retaining their membership in the fund organized under
157.21 	sections 422A.01 to 422A.25this chapter, regardless of the
157.22 	provisions of any law, rule, bylaw or other action requiring
157.23 	membership in any other retirement fund or relief association
157.24 	however organized.; or 
157.25 	(2) transferring to the fund or association covering the
157.26 	employees of the department or board to which they are
157.27 	transferring, providing they are eligible for membership therein.
157.28 	(c) Any contributing employee who elects to transfer to
157.29 	another fund or association as herein provided in paragraph (b),
157.30 	clause (2), shall must make such election within one year from
157.31 	the date of separation from the city service covered by this
157.32 	fund.  If the contributing employee elects to transfer to
157.33 	another fund as herein provided, the employee is entitled to a
157.34 	refund of the net accumulated contributions made by such
157.35 	employee to the fund organized under sections 422A.01 to
157.36 	422A.25, shall be returned to the employee this chapter with
158.1 	interest at the annual compound rate of six percent.

158.2 	Sec. 72. Minnesota Statutes 2004, section 422A.22,
158.3 	subdivision 3, is amended to read:
158.4 		Subd. 3.Limitation on eligibility.  No employee of the
158.5 	city shall be is eligible to be a member of,or receive benefits
158.6 	from,more than one retirement plan or fund of the city for the
158.7 	same period of service.

158.8 	Sec. 73. Minnesota Statutes 2004, section 422A.22,
158.9 	subdivision 4, is amended to read:
158.10 		Subd. 4.Death-while-active refund.  (a) Upon the death
158.11 	of an active member prior to before the employee's termination
158.12 	of active service, there shall be paid to the beneficiary or
158.13 	beneficiaries designated by the member on a form specified by
158.14 	the executive director and filed with the retirement board,are
158.15 	entitled to receive the net accumulated employee deductions from
158.16 	salary, pay, or compensation, including interest under
158.17 	subdivision 1, paragraph (a),compounded annually to the date of
158.18 	the member's death.  The amount must not include any
158.19 	contributions made by the employee or on the employee's behalf,
158.20 	or any interest or investment earnings on those contributions,
158.21 	which were allocated to the survivor benefit fund under section
158.22 	422A.06, subdivision 6.
158.23 	(b) If the employee fails to make a designation, or if the
158.24 	beneficiary or beneficiaries designated by the employee
158.25 	predeceases the employee, the benefit specified in paragraph (a)
158.26 	must be paid to the deceased employee's estate is entitled to
158.27 	the benefit specified in paragraph (a).
158.28 	(c) A benefit payable under this subdivision is in addition
158.29 	to any applicable survivor benefit under section 422A.23.

158.30 	Sec. 74. Minnesota Statutes 2004, section 422A.22,
158.31 	subdivision 6, is amended to read:
158.32 		Subd. 6.Refund; municipal employees retirement fund.
 158.33 	Any A person who has received a refund from the municipal 
158.34 	Minneapolis Employees Retirement Fund, and who is a member of a
158.35 	public retirement system included in section 422A.16,
158.36 	subdivision 8, may repay such refund with interest at a compound
159.1 	annual rate of 8.5 percent to the municipal Minneapolis 
159.2 	Employees Retirement Fund.  If a refund is repaid to the fund
159.3 	and if more than one refund has been received from the fund, all
159.4 	refunds must be repaid.  Repayment shall must be made as
159.5 	provided in sections 422A.01 to 422A.25this chapter.

159.6 	Sec. 75. Minnesota Statutes 2004, section 422A.231, is
159.7 	amended to read:
159.8 	422A.231 COST ALLOCATION.
159.9 	(a) Notwithstanding any law to the contrary, all current
159.10 	and future contribution requirements due to this article are
159.11 	payable by the participating contributing employing units other
159.12 	than the state of Minnesota.
159.13 	(b) In each actuarial valuation of the retirement fund, the
159.14 	actuary retained by the Legislative Commission on Pensions and
159.15 	Retirement under section 356.214shall include an exhibit on the
159.16 	impact of the benefit increases contained in this article on the
159.17 	survivor benefit fund.  The actuary shall calculate the expected
159.18 	change in the present value of the future benefits payable from
159.19 	the survivor benefit fund attributable to this article, using
159.20 	the actuarial method and assumptions applicable to the
159.21 	Minneapolis Employees Retirement Fund, from the prior actuarial
159.22 	valuation and shall compare that result with the actual change
159.23 	in the present value of future benefits payable from the
159.24 	survivor benefit fund attributable to this article from the
159.25 	prior actuarial valuation.
159.26 	(c) The executive director shall assess each participating
159.27 	employer, other than the state of Minnesota, its proportional
159.28 	share of the net increase amount calculated under paragraph
159.29 	(b).  The assessment must be made on the first business day of
159.30 	the following February, plus compound interest at an annual rate
159.31 	of six percent on the amount from the actuarial valuation date
159.32 	to the date of payment.

159.33 	Sec. 76. Minnesota Statutes 2004, section 422A.24, is
159.34 	amended to read:
159.35 	422A.24 ALLOWANCES NOT ASSIGNABLE OR SUBJECT TO PROCESS.
159.36 	No money payable pursuant to this chapter shall be
160.1 	assignable either in law or equity or be subject to execution,
160.2 	levy, attachment, garnishment, or other legal process, except as
160.3 	provided in section 518.58, 518.581, or 518.6111, nor shall any
160.4 	of the proceeds of payments due pursuant to this chapter be
160.5 	subject to the inheritance tax provisions of this state upon
160.6 	transfer to a surviving spouse or minor or dependent child of
160.7 	the decedent or a trust for their benefit.The provisions of
160.8 	section 356.401 apply to the Minneapolis employees retirement
160.9 	plan.

160.10 	Sec. 77. Minnesota Statutes 2004, section 423B.17, is
160.11 	amended to read:
160.12 	423B.17 PAYMENTS EXEMPT FROM PROCESS.
160.13 	A payment made by the association under a provision of
160.14 	sections 423B.01 to 423B.18, as amended, is exempt from legal
160.15 	process except as provided in section 518.58, 518.581, or
160.16 	518.6111.  No person entitled to a payment may assign the same.
160.17 	The association may not recognize an assignment or pay a sum on
160.18 	account of an assignment.The provisions of section 356.401
160.19 	apply to the Minneapolis Police Relief Association.

160.20 	Sec. 78. Minnesota Statutes 2004, section 423C.09, is
160.21 	amended to read:
160.22 	423C.09 PAYMENTS EXEMPT FROM PROCESS.
160.23 	All payments made, or to be made, by the association under
160.24 	this chapter shall be totally exempt from garnishment,
160.25 	execution, or other legal process, except as provided in section
160.26 	518.58, 518.581, or 518.6111.  No person entitled to a payment
160.27 	shall have the right to assign the name, nor shall the
160.28 	association have authority to recognize any assignment or to pay
160.29 	any sum on account thereof.  Any attempt to transfer any right
160.30 	or claim, or any part thereof, shall be void.The provisions of
160.31 	section 356.401 apply to the Minneapolis Firefighters Relief
160.32 	Association.

160.33 	Sec. 79. Minnesota Statutes 2004, section 490.126,
160.34 	subdivision 5, is amended to read:
160.35 		Subd. 5.Exemption from process; no assignment. None of
160.36 	the money, annuities, or other benefits provided in this chapter
161.1 	is assignable either in law or equity or is subject to
161.2 	execution, levy, attachment, garnishment, or other legal
161.3 	process, except as provided in section 518.58, 518.581, or
161.4 	518.6111.The provisions of section 356.401 apply to the judges
161.5 	retirement plan.

161.6 	Sec. 80. REVISOR'S INSTRUCTION.
 161.7 	In the next edition and subsequent editions of Minnesota
161.8 	Statutes, the revisor of statutes shall replace the reference to
161.9 	"sections 422A.01 to 422A.25" with the reference to "this
161.10 	chapter" wherever the reference appears in Minnesota Statutes,
161.11 	chapter 422A.

161.12 	Sec. 81. REPEALER.
 161.13 	(a) Minnesota Statutes 2004, section 352.119, subdivision
161.14 	1, is repealed.
161.15 	(b) Minnesota Statutes 2004, sections 353.34, subdivision
161.16 	3b; 353.36, subdivisions 2, 2a, 2b, and 2c; 353.46, subdivision
161.17 	4; 353.663; 353.74; and 353.75, are repealed.
161.18 	(c) Minnesota Statutes 2004, section 354.59, is repealed.
161.19 	(d) Minnesota Statutes 2004, sections 422A.22, subdivisions
161.20 	2 and 5; and 422A.221, are repealed.
161.21 	(e) Minnesota Statutes 2004, sections 352.15, subdivision
161.22 	1a; 353.15, subdivision 2; and 354.10, subdivision 2, are
161.23 	repealed.

161.24 	Sec. 82. EFFECTIVE DATE.
 161.25 	(a) Sections 1 to 73 and 75 to 81 are effective July 1,
161.26 	2005.
161.27 	(b) Section 74 is effective January 1, 2006.
161.28 	(c) Sections 1, 21, 22, 23, 29, 45, 46, 53, 64, 76, 77, 78,
161.29 	79, and 81, paragraph (e), do not apply to any cause of action
161.30 	that is proceeding on the date of enactment or to any cause of
161.31 	action for which the applicable statute of limitations has not
161.32 	expired as of the date of enactment.

161.33 	ARTICLE 13
161.34 	LOCAL RETIREMENT PLANS

161.35 	Section 1. Minnesota Statutes 2004, section 356.215,
161.36 	subdivision 8, is amended to read:
162.1 		Subd. 8.Interest and salary assumptions.  (a) The
162.2 	actuarial valuation must use the applicable following
162.3 	preretirement interest assumption and the applicable following
162.4 	postretirement interest assumption:
162.5 	preretirement  postretirement
162.6 	                                   interest rate  interest rate
162.7 	            plan                      assumption     assumption
162.8 	     general state employees
162.9 	         retirement plan                  8.5%          6.0%
162.10 	     correctional state employees
162.11 	         retirement plan                  8.5           6.0
162.12 	     State Patrol retirement plan         8.5           6.0
162.13 	     legislators retirement plan          8.5           6.0
162.14 	     elective state officers
162.15 	         retirement plan                  8.5           6.0
162.16 	     judges retirement plan               8.5           6.0
162.17 	     general public employees
162.18 	         retirement plan                  8.5           6.0
162.19 	     public employees police and fire
162.20 	         retirement plan                  8.5           6.0
162.21 	     local government correctional
162.22 	         service retirement plan          8.5           6.0
162.23 	     teachers retirement plan             8.5           6.0
162.24 	     Minneapolis employees
162.25 	         retirement plan                  6.0           5.0
162.26 	     Duluth teachers retirement plan      8.5           8.5
162.27 	     Minneapolis teachers retirement
162.28 	         plan                             8.5           8.5
162.29 	     St. Paul teachers retirement
162.30 	         plan                             8.5           8.5
162.31 	     Minneapolis Police Relief
162.32 	         Association                      6.0           6.0
162.33 	     Fairmont Police Relief
162.34 	         Association                      5.0           5.0
162.35 	     Minneapolis Fire Department
162.36 	         Relief Association               6.0           6.0
162.37 	     Virginia Fire Department
162.38 	         Relief Association               5.0           5.0
162.39 	Bloomington Fire Department
162.40 	         Relief Association 6.0 6.0 
162.41 	     local monthly benefit volunteer
162.42 	         firefighters relief associations 5.0           5.0
162.43 	(b) The actuarial valuation must use the applicable
162.44 	following single rate future salary increase assumption, the
162.45 	applicable following modified single rate future salary increase
162.46 	assumption, or the applicable following graded rate future
162.47 	salary increase assumption:
162.48 	(1) single rate future salary increase assumption
162.49 	future salary
162.50 	            plan                          increase assumption
162.51 	     legislators retirement plan                  5.0%
162.52 	     elective state officers retirement
162.53 	         plan                                     5.0
162.54 	     judges retirement plan                       5.0
162.55 	     Minneapolis Police Relief Association        4.0
162.56 	     Fairmont Police Relief
162.57 	         Association                              3.5
162.58 	     Minneapolis Fire Department Relief
162.59 	         Association                              4.0
162.60 	     Virginia Fire Department
163.1 	         Relief Association                       3.5
163.2 	Bloomington Fire Department Relief 
163.3 	Association 4.0 
163.4 	(2) modified single rate future salary increase assumption
163.5 	future salary
163.6 	               plan                       increase assumption
163.7 	         Minneapolis employees        the prior calendar year
163.8 	           retirement plan            amount increased first by
163.9 	1.0198 percent to prior
163.10 	                                      fiscal year date and
163.11 	                                      then increased by 4.0
163.12 	                                      percent annually for
163.13 	                                      each future year
163.14 	(3) select and ultimate future salary increase assumption
163.15 	or graded rate future salary increase assumption
163.16 	future salary
163.17 	               plan                       increase assumption
163.18 	     general state employees             select calculation and
163.19 	         retirement plan                      assumption A
163.20 	     correctional state employees
163.21 	         retirement plan                      assumption H
163.22 	     State Patrol retirement plan             assumption H
163.23 	     general public employees            select calculation and
163.24 	         retirement plan                      assumption B
163.25 	     public employees police and fire
163.26 	         fund retirement plan                 assumption C
163.27 	     local government correctional service
163.28 	         retirement plan                      assumption H
163.29 	     teachers retirement plan                 assumption D
163.30 	     Duluth teachers retirement plan          assumption E
163.31 	     Minneapolis teachers retirement plan     assumption F
163.32 	     St. Paul teachers retirement plan        assumption G
163.33 	
163.34 	     The select calculation is:
163.35 	     during the ten-year select period, a designated percent
163.36 	     is multiplied by the result of ten minus T, where T is
163.37 	     the number of completed years of service, and is added
163.38 	     to the applicable future salary increase assumption.  The
163.39 	     designated percent is 0.2 percent for the correctional state
163.40 	     employees retirement plan, the State Patrol retirement
163.41 	     plan, the public employees police and fire plan, and the
163.42 	     local government correctional service plan; 0.3 percent
163.43 	     for the general state employees retirement plan, the
163.44 	     general public employees retirement plan, the teachers
163.45 	     retirement plan, the Duluth Teachers Retirement Fund
163.46 	     Association, and the St. Paul Teachers Retirement Fund
163.47 	     Association; and 0.4 percent for the Minneapolis Teachers
163.48 	     Retirement Fund Association.
163.49 	
163.50 	          The ultimate future salary increase assumption is:
163.51 	
163.52 	     age  A     B      C     D     E     F     G      H
163.53 	     16  6.95% 6.95% 11.50% 8.20% 8.00% 6.50% 6.90% 7.7500
163.54 	     17  6.906.9011.508.158.006.506.90  7.7500
163.55 	     18  6.856.8511.508.108.006.506.90  7.7500
163.56 	     19  6.806.8011.508.058.006.506.90  7.7500
163.57 	     20  6.756.4011.506.006.906.506.90  7.7500
163.58 	     21  6.756.4011.506.006.906.506.90  7.1454
163.59 	     22  6.756.4011.006.006.906.506.90  7.0725
163.60 	     23  6.756.4010.506.006.856.506.85  7.0544
163.61 	     24  6.756.4010.006.006.806.506.80  7.0363
163.62 	     25  6.756.409.506.006.756.506.75  7.0000
163.63 	     26  6.756.369.206.006.706.506.70  7.0000
163.64 	     27  6.756.328.906.006.656.506.65  7.0000
164.1 	     28  6.756.288.606.006.606.506.60  7.0000
164.2 	     29  6.756.248.306.006.556.506.55  7.0000
164.3 	     30  6.756.208.006.006.506.506.50  7.0000
164.4 	     31  6.756.167.806.006.456.506.45  7.0000
164.5 	     32  6.756.127.606.006.406.506.40  7.0000
164.6 	     33  6.756.087.406.006.356.506.35  7.0000
164.7 	     34  6.756.047.206.006.306.506.30  7.0000
164.8 	     35  6.756.007.006.006.256.506.25  7.0000
164.9 	     36  6.755.966.806.006.206.506.20  6.9019
164.10 	     37  6.755.926.606.006.156.506.15  6.8074
164.11 	     38  6.755.886.405.906.106.506.10  6.7125
164.12 	     39  6.755.846.205.806.056.506.05  6.6054
164.13 	     40  6.755.806.005.706.006.506.00  6.5000
164.14 	     41  6.755.765.905.605.906.505.95  6.3540
164.15 	     42  6.755.725.805.505.806.505.90  6.2087
164.16 	     43  6.655.685.705.405.706.505.85  6.0622
164.17 	     44  6.555.645.605.305.606.505.80  5.9048
164.18 	     45  6.455.605.505.205.506.505.75  5.7500
164.19 	     46  6.355.565.455.105.406.405.70  5.6940
164.20 	     47  6.255.525.405.005.306.305.65  5.6375
164.21 	     48  6.155.485.355.005.206.205.60  5.5822
164.22 	     49  6.055.445.305.005.106.105.55  5.5404
164.23 	     50  5.955.405.255.005.006.005.50  5.5000
164.24 	     51  5.855.365.255.005.005.905.45  5.4384
164.25 	     52  5.755.325.255.005.005.805.40  5.3776
164.26 	     53  5.655.285.255.005.005.705.35  5.3167
164.27 	     54  5.555.245.255.005.005.605.30  5.2826
164.28 	     55  5.455.205.255.005.005.505.25  5.2500
164.29 	     56  5.355.165.255.005.005.405.20  5.2500
164.30 	     57  5.255.125.255.005.005.305.15  5.2500
164.31 	     58  5.255.085.255.105.005.205.10  5.2500
164.32 	     59  5.255.045.255.205.005.105.05  5.2500
164.33 	     60  5.255.005.255.305.005.005.00  5.2500
164.34 	     61  5.255.005.255.405.005.005.00  5.2500
164.35 	     62  5.255.005.255.505.005.005.00  5.2500
164.36 	     63  5.255.005.255.605.005.005.00  5.2500
164.37 	     64  5.255.005.255.705.005.005.00  5.2500
164.38 	     65  5.255.005.255.705.005.005.00  5.2500
164.39 	     66  5.255.005.255.705.005.005.00  5.2500
164.40 	     67  5.255.005.255.705.005.005.00  5.2500
164.41 	     68  5.255.005.255.705.005.005.00  5.2500
164.42 	     69  5.255.005.255.705.005.005.00  5.2500
164.43 	     70  5.255.005.255.705.005.005.00  5.2500
164.44 	     71  5.255.00         5.70
164.45 	(c) The actuarial valuation must use the applicable
164.46 	following payroll growth assumption for calculating the
164.47 	amortization requirement for the unfunded actuarial accrued
164.48 	liability where the amortization retirement is calculated as a
164.49 	level percentage of an increasing payroll:
164.50 	payroll growth
164.51 	                  plan                             assumption
164.52 	     general state employees retirement plan          5.00%
164.53 	     correctional state employees retirement plan     5.00
164.54 	     State Patrol retirement plan                     5.00
164.55 	     legislators retirement plan                      5.00
164.56 	     elective state officers retirement plan          5.00
164.57 	     judges retirement plan                           5.00
164.58 	     general public employees retirement plan         6.00
164.59 	     public employees police and fire
164.60 	         retirement plan                              6.00
164.61 	     local government correctional service
164.62 	         retirement plan                              6.00
164.63 	     teachers retirement plan                         5.00
164.64 	     Duluth teachers retirement plan                  5.00
164.65 	     Minneapolis teachers retirement plan             5.00
165.1 	     St. Paul teachers retirement plan                5.00

165.2 	Sec. 2. Minnesota Statutes 2004, section 356.216, is
165.3 	amended to read:
165.4 	356.216 CONTENTS OF ACTUARIAL VALUATIONS FOR LOCAL POLICE
165.5 	AND FIRE FUNDS.
165.6 	(a) The provisions of section 356.215 that govern the
165.7 	contents of actuarial valuations must apply to any local police
165.8 	or fire pension fund or relief association required to make an
165.9 	actuarial report under this section, except as follows:
165.10 	(1) in calculating normal cost and other requirements, if
165.11 	required to be expressed as a level percentage of covered
165.12 	payroll, the salaries used in computing covered payroll must be
165.13 	the maximum rate of salary on which retirement and survivorship
165.14 	credits and amounts of benefits are determined and from which
165.15 	any member contributions are calculated and deducted;
165.16 	(2) in lieu of the amortization date specified in section
165.17 	356.215, subdivision 11, the appropriate amortization target
165.18 	date specified in section 69.77, subdivision 4, or 69.773,
165.19 	subdivision 4, clause (c), must be used in calculating any
165.20 	required amortization contribution, except that if the actuarial
165.21 	report for the Bloomington Fire Department Relief Association
165.22 	indicates an unfunded actuarial accrued liability, the unfunded
165.23 	obligation is to be amortized on a level dollar basis by
165.24 	December 31 of the year occurring 20 years later, and if
165.25 	subsequent actuarial valuations for the Bloomington Fire
165.26 	Department Relief Association determine a net actuarial
165.27 	experience loss incurred during the year which ended as of the
165.28 	day before the most recent actuarial valuation date, any
165.29 	unfunded liability due to that loss is to be amortized on a
165.30 	level dollar basis by December 31 of the year occurring 20 years
165.31 	later;
165.32 	(3) in addition to the tabulation of active members and
165.33 	annuitants provided for in section 356.215, subdivision 13, the
165.34 	member contributions for active members for the calendar year
165.35 	and the prospective annual retirement annuities under the
165.36 	benefit plan for active members must be reported;
166.1 	(4) actuarial valuations required under section 69.773,
166.2 	subdivision 2, must be made at least every four years and
166.3 	actuarial valuations required under section 69.77 shall be made
166.4 	annually;
166.5 	(5) the actuarial balance sheet showing accrued assets
166.6 	valued at market value if the actuarial valuation is required to
166.7 	be prepared at least every four years or valued as current
166.8 	assets under section 356.215, subdivision 1, clause (6), or
166.9 	paragraph (b), whichever applies, if the actuarial valuation is
166.10 	required to be prepared annually, actuarial accrued liabilities,
166.11 	and the unfunded actuarial accrued liability must include the
166.12 	following required reserves:
166.13 	(i) For active members
166.14 	      1.  Retirement benefits
166.15 	      2.  Disability benefits
166.16 	      3.  Refund liability due to death or withdrawal
166.17 	      4.  Survivors' benefits
166.18 	         (ii) For deferred annuitants' benefits
166.19 	         (iii) For former members without vested rights
166.20 	         (iv) For annuitants
166.21 	      1.  Retirement annuities
166.22 	      2.  Disability annuities
166.23 	      3.  Surviving spouses' annuities
166.24 	      4.  Surviving children's annuities
166.25 	In addition to those required reserves, separate items must
166.26 	be shown for additional benefits, if any, which may not be
166.27 	appropriately included in the reserves listed above; and
166.28 	(6) actuarial valuations are due by the first day of the
166.29 	seventh month after the end of the fiscal year which the
166.30 	actuarial valuation covers.
166.31 	(b) For the Minneapolis Firefighters Relief Association or
166.32 	the Minneapolis Police Relief Association, the following
166.33 	provisions additionally apply:
166.34 	(1) in calculating the actuarial balance sheet, unfunded
166.35 	actuarial accrued liability, and amortization contribution of
166.36 	the relief association, "current assets" means the value of all
167.1 	assets at cost, including realized capital gains and losses,
167.2 	plus or minus, whichever applies, the average value of total
167.3 	unrealized capital gains or losses for the most recent
167.4 	three-year period ending with the end of the plan year
167.5 	immediately preceding the actuarial valuation report
167.6 	transmission date; and
167.7 	(2) in calculating the applicable portions of the actuarial
167.8 	valuation, an annual preretirement interest assumption of six
167.9 	percent, an annual postretirement interest assumption of six
167.10 	percent, and an annual salary increase assumption of four
167.11 	percent must be used.

167.12 	Sec. 3. AURORA, BIWABIK CITY, HOYT LAKES, AND PALO
167.13 	VOLUNTEER FIREFIGHTER RELIEF ASSOCIATIONS; CONSOLIDATION.
 167.14 	(a) This section applies to consolidation of any
167.15 	combination of two or more of the following volunteer
167.16 	firefighter relief associations:  Aurora, Biwabik City, Hoyt
167.17 	Lakes, and Palo.
167.18 	(b) Notwithstanding Minnesota Statutes, section 424B.10,
167.19 	subdivision 1, paragraph (a), the service pension to be paid by
167.20 	the relief association existing after the consolidation is as
167.21 	follows:
167.22 	(1) for the service rendered by each individual volunteer
167.23 	firefighter before the effective date of the consolidation, the
167.24 	service pension amount is the amount payable to that volunteer
167.25 	firefighter under the articles of incorporation or bylaws of the
167.26 	consolidating volunteer firefighters relief association that the
167.27 	firefighter was a member of immediately before the
167.28 	consolidation;
167.29 	(2) for the service rendered after the effective date of
167.30 	the consolidation, the service pension amount is the highest
167.31 	dollar amount service pension of any of the consolidating
167.32 	volunteer firefighters relief associations under the articles of
167.33 	incorporation or bylaws in effect immediately before the
167.34 	consolidation; and 
167.35 	(3) after consolidation, increases in the amounts
167.36 	established in clauses (1) and (2) may be implemented if
168.1 	consistent with applicable requirements of Minnesota Statutes,
168.2 	chapters 69 and 424A.

168.3 	Sec. 4. EVELETH RETIRED POLICE AND FIRE TRUST FUND; AD
168.4 	HOC POSTRETIREMENT ADJUSTMENT.
 168.5 	(a) In addition to the current pensions and other
168.6 	retirement benefits payable, the pensions and retirement
168.7 	benefits payable to retired police officers and firefighters and
168.8 	their surviving spouses by the Eveleth police and fire trust
168.9 	fund are increased by $100 per month.  Increases are retroactive
168.10 	from January 1, 2005.
168.11 	(b) Following the January 1, 2005, effective date of the
168.12 	benefit increase provided under paragraph (a), every two years
168.13 	thereafter, to be effective no earlier than the applicable
168.14 	January 1, the city council of the city of Eveleth is authorized
168.15 	to provide permanent, uniform benefit increases, not less than
168.16 	$10 per month nor to exceed $100 per month, to any remaining
168.17 	retirees and survivors receiving benefits from the Eveleth
168.18 	police and fire trust fund.  Any given benefit improvement under
168.19 	this paragraph is not effective unless the city council passes a
168.20 	resolution approving the increase.
168.21 	(c) Within 30 days following the approval of a resolution
168.22 	under paragraph (b), the chief administrative officer of the
168.23 	city of Eveleth shall file a copy of the resolution with the
168.24 	executive director of the Legislative Commission on Pensions and
168.25 	Retirement, with the chair of the house Governmental Operations
168.26 	and Veterans Affairs Committee, and with the chair of the senate
168.27 	State and Local Government Operations Committee.  Along with a
168.28 	copy of the resolution, the city's chief administrative officer
168.29 	must send a statement indicating the age of each benefit
168.30 	recipient and the retirement benefit or survivor benefit being
168.31 	received before and after the benefit increase.

168.32 	Sec. 5. MAPLEWOOD AND OAKDALE VOLUNTEER FIREFIGHTER
168.33 	RELIEF ASSOCIATIONS; TRANSFER OF ASSETS.
 168.34 	Notwithstanding any limitations in Minnesota Statutes,
168.35 	section 424A.02, subdivision 13, or any other provision of law
168.36 	to the contrary, if an agreement between the affected relief
169.1 	associations and cities is reached as provided in this section,
169.2 	the Maplewood Firefighters Relief Association may transfer
169.3 	assets from its special fund to the Oakdale Fire Department
169.4 	Relief Association representing the value of the accumulated
169.5 	service credit for the current members of the Oakdale Fire
169.6 	Department Relief Association who are currently eligible to
169.7 	receive a combined service pension for firefighter service in
169.8 	both associations.  The transfer of the assets from the
169.9 	Maplewood Firefighters Relief Association to the Oakdale Fire
169.10 	Department Relief Association must be in an amount representing
169.11 	the cumulative value of the service credit earned by the members
169.12 	of the Oakdale Fire Department Relief Association who are
169.13 	currently eligible to receive a combined service pension for
169.14 	firefighting service in both associations for the service credit
169.15 	that they accrued while working for the Maplewood Fire
169.16 	Department.  The amount of the assets, liabilities, and service
169.17 	credit to be transferred must be specified in a joint agreement
169.18 	negotiated by the secretaries of the two relief associations and
169.19 	ratified by the boards of trustees of both relief associations
169.20 	and of the cities of Maplewood and Oakdale.  The agreement must
169.21 	specify by name or other appropriate means the firefighters
169.22 	affected by the liability, asset, and service credit transfer.
169.23 	The ratification must be expressed in the form of resolutions
169.24 	adopted by each entity.  The agreements must specify the amount
169.25 	of assets to be transferred, the amount of liabilities to be
169.26 	transferred, and the amount of service credit each of the
169.27 	applicable individuals will receive in the Oakdale Fire
169.28 	Department Relief Association.  Upon the ratification of the
169.29 	agreement by both relief associations and both cities, the
169.30 	assets, liabilities, and service credit of the applicable
169.31 	individuals must be transferred to the Oakdale Fire Department
169.32 	Relief Association, and the Maplewood Firefighters Relief
169.33 	Association is relieved of any obligation to the individuals.  A
169.34 	certified copy of the ratified agreement must be filed with the
169.35 	state auditor and with the secretary of state.

169.36 	Sec. 6. EFFECTIVE DATE; LOCAL APPROVAL.
 170.1 	(a) Sections 1 and 2 are effective the day after the date
170.2 	on which the city council of the city of Bloomington and its
170.3 	chief clerical officer timely complete their compliance with
170.4 	Minnesota Statutes, section 645.021, subdivisions 2 and 3.
170.5 	(b) Section 3 is effective the day after the date on which
170.6 	the city council of the city of Eveleth and its chief clerical
170.7 	officer timely complete their compliance with Minnesota
170.8 	Statutes, section 645.021, subdivisions 2 and 3.
170.9 	(c) Section 4 is effective with respect to a volunteer
170.10 	firefighters relief association listed in column A the day after
170.11 	the governing body of the municipality listed in column B and
170.12 	its chief clerical officer timely complete compliance with
170.13 	Minnesota Statutes, section 645.021, subdivisions 2 and 3.
170.14 	A B
170.15 	              Aurora city of Aurora
170.16 	              Biwabik city of Biwabik
170.17 	              Hoyt Lakes city of Hoyt Lakes
170.18 	              Palo town of White 
170.19 	(d) Section 5 is effective the day after the governing body
170.20 	of the city of Maplewood, the governing body of the city of
170.21 	Oakdale, the Maplewood chief clerical officer, and the Oakdale
170.22 	chief clerical officer complete their compliance with Minnesota
170.23 	Statutes, section 645.021, subdivisions 2 and 3.