1.1 	A bill for an act
1.2 	relating to retirement; merging the Minneapolis Teachers Retirement Fund 
1.3 	Association and the Teachers Retirement Association; adjusting contribution 
1.4 	rates; making technical changes; providing a benefit increase; making state 
1.5 	aid adjustment; appropriating money; amending Minnesota Statutes 2004, 
1.6 	sections 127A.50, subdivision 1; 128D.10; 354.05, subdivisions 2, 13; 354.42, 
1.7 	subdivisions 2, 3; 354A.011, subdivisions 15a, 27; 354A.021, subdivision 
1.8 	1; 354A.092; 354A.093, subdivision 1; 354A.095; 354A.096; 354A.12, 
1.9 	subdivisions 1, 2, 2a, 3a, 3b, 3c, 3d; 354A.30; 354A.32, subdivision 1; 354A.39; 
1.10 	354A.40, subdivision 1; 354A.41; 356.20, subdivision 2; 356.214, subdivision 
1.11 	1; 356.215, subdivision 11; 356.30, subdivision 3; 356.302, subdivision 7; 
1.12 	356.303, subdivision 4; 356.315, by adding subdivisions; 356.42, subdivision 
1.13 	3; 356.465, subdivision 3; 423A.02, subdivision 1b; Minnesota Statutes 2005 
1.14 	Supplement, sections 354.44, subdivision 6; 354A.31, subdivision 4; 356.215, 
1.15 	subdivision 8; proposing coding for new law in Minnesota Statutes, chapters 
1.16 	128D; 354; repealing Minnesota Statutes 2004, sections 354A.051; 354A.105; 
1.17 	354A.23, subdivision 1; 354A.28.
1.18 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.19 	Section 1. Minnesota Statutes 2004, section 127A.50, subdivision 1, is amended to 
1.20 	read:
1.21 		Subdivision 1.Aid adjustment. Beginning in fiscal year 1998 and each year 
1.22 	thereafter, the commissioner of education shall adjust state aid payments to school 
1.23 	operating funds for Independent School District No. 625, and Independent School District 
1.24 	No. 709, and Special School District No. 1 by the net amount of clauses (1) and (2), 
1.25 	for Special School District No. 1 by the net amount of clauses (1), (2), and (4), and for 
1.26 	all other districts, including charter schools, but excluding any education organizations 
1.27 	that are prohibited from receiving direct state aids under section  123A.26 or  125A.75, 
1.28 	subdivision 7, by the net amount of clauses (1), (2), and (3), and (4): 
2.1 	(1) a decrease equal to each district's share of the fiscal year 1997 adjustment 
2.2 	effected under Minnesota Statutes 1996, section  124.2139; 
2.3 	(2) an increase equal to one percent of the salaries paid to members of the general 
2.4 	plan of the Public Employees Retirement Association in fiscal year 1997, multiplied by 
2.5 	0.35 for fiscal year 1998 and 0.70 each year thereafter;
2.6 	(3) a decrease equal to  2.34 percent of the salaries paid to members of the Teachers 
2.7 	Retirement Association in fiscal year 1997.; and
2.8 	(4) an increase equal to 0.5 percent of the salaries paid to members of the Teachers 
2.9 	Retirement Association in fiscal year 2007. 

2.10 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2008.

2.11 	Sec. 2. Minnesota Statutes 2004, section 128D.10, is amended to read:
2.12 	128D.10 CONTINUITY ON TENURE, PENSIONS, AND RETIREMENT.
2.13 	(a) The tenure, pension, and retirement provisions of any law applicable to 
2.14 	employees of the special school district of Minneapolis, including employees belonging 
2.15 	to the municipal employees retirement fund and those belonging to the Minneapolis 
2.16 	Teachers' Retirement Fund Associationbefore April 24, 1959, shall continue to be 
2.17 	applicable in the same manner and to the same extent to employees of the special 
2.18 	independent school district after April 24, 1959, except as otherwise provided in law.
2.19 	(b) The provisions of any general law or laws which are applicable only to 
2.20 	independent school districts wholly or partially within cities of the first class shall not be 
2.21 	applicable to the special independent school district of Minneapolis.
2.22 	(c) The powers, duties, and corporate structure of the Minneapolis Teachers' 
2.23 	Retirement Fund Association, and the laws applicable thereto, shall be and remain the 
2.24 	same in the special independent school district of Minneapolis as at the time of enactment 
2.25 	of the within law, until changed in accordance with law.

2.26 	Sec. 3. [128D.19] AID REDEDICATION.
2.27 	Notwithstanding any law to the contrary and subject to section 354A.12, subdivision 
2.28 	3c, special direct state aid previously paid to the Minneapolis Teachers Retirement Fund 
2.29 	Association under sections 354A.12, subdivisions 3a and 3b, and 423A.02, must be paid 
2.30 	to the Teachers Retirement Association.

2.31 	Sec. 4. Minnesota Statutes 2004, section 354.05, subdivision 2, is amended to read:
2.32 		Subd. 2.Teacher. (a) "Teacher" means:
3.1 	(1) a person who renders service as a teacher, supervisor, principal, superintendent, 
3.2 	librarian, nurse, counselor, social worker, therapist, or psychologist in a public school of 
3.3 	the state located outside of the corporate limits of a city of the first class the city of Duluth 
3.4 	or the city of St. Paul, or in any charter school, irrespective of the location of the school, 
3.5 	or in any charitable, penal, or correctional institutions of a governmental subdivision, or 
3.6 	who is engaged in educational administration in connection with the state public school 
3.7 	system, but excluding the University of Minnesota, whether the position be a public office 
3.8 	or an employment, and not including the members or officers of any general governing or 
3.9 	managing board or body;
3.10 	(2) an employee of the Teachers Retirement Association;
3.11 	(3) a person who renders teaching service on a part-time basis and who also renders 
3.12 	other services for a single employing unit. A person whose teaching service comprises at 
3.13 	least 50 percent of the combined employment salary is a member of the association for all 
3.14 	services with the single employing unit. If the person's teaching service comprises less 
3.15 	than 50 percent of the combined employment salary, the executive director must determine 
3.16 	whether all or none of the combined service is covered by the association; or
3.17 	(4) a person who is not covered by the plans established under chapter 352D, 354A, 
3.18 	or 354B and who is employed by the Board of Trustees of the Minnesota State Colleges 
3.19 	and Universities system in an unclassified position as:
3.20 	(i) a president, vice-president, or dean;
3.21 	(ii) a manager or a professional in an academic or an academic support program 
3.22 	other than specified in item (i);
3.23 	(iii) an administrative or a service support faculty position; or
3.24 	(iv) a teacher or a research assistant.
3.25 	(b) "Teacher" does not mean:
3.26 	(1) a person who works for a school or institution as an independent contractor as 
3.27 	defined by the Internal Revenue Service;
3.28 	(2) a person who renders part-time teaching service or who is a customized trainer 
3.29 	as defined by the Minnesota State Colleges and Universities system if (i) the service is 
3.30 	incidental to the regular nonteaching occupation of the person; and (ii) the employer 
3.31 	stipulates annually in advance that the part-time teaching service or customized training 
3.32 	service will not exceed 300 hours in a fiscal year and retains the stipulation in its records; 
3.33 	and (iii) the part-time teaching service or customized training service actually does not 
3.34 	exceed 300 hours in a fiscal year; or
3.35 	(3) a person exempt from licensure under section  122A.30. 

4.1 	Sec. 5. Minnesota Statutes 2004, section 354.05, subdivision 13, is amended to read:
4.2 		Subd. 13.Allowable service. "Allowable service" means:
4.3 	(1) Any service rendered by a teacher for which on or before July 1, 1957, the 
4.4 	teacher's account in the retirement fund was credited by reason of employee contributions 
4.5 	in the form of salary deductions, payments in lieu of salary deductions, or in any other 
4.6 	manner authorized by Minnesota Statutes 1953, sections  135.01 to  135.13, as amended by 
4.7 	Laws 1955, chapters 361, 549, 550, 611, or 
4.8 	(2) Any service rendered by a teacher for which on or before July 1, 1961, the 
4.9 	teacher elected to obtain credit for service by making payments to the fund pursuant to 
4.10 	Minnesota Statutes 1980, section  354.09 and section  354.51, or 
4.11 	(3) Any service rendered by a teacher after July 1, 1957, for any calendar month 
4.12 	when the member receives salary from which deductions are made, deposited and credited 
4.13 	in the fund, or
4.14 	(4) Any service rendered by a person after July 1, 1957, for any calendar month 
4.15 	where payments in lieu of salary deductions are made, deposited and credited into the 
4.16 	fund as provided in Minnesota Statutes 1980, section  354.09, subdivision 4, and section  
4.17 	354.53, or 
4.18 	(5) Any service rendered by a teacher for which the teacher elected to obtain 
4.19 	credit for service by making payments to the fund pursuant to Minnesota Statutes 1980, 
4.20 	section  354.09, subdivisions 1 and 4, sections  354.50,  354.51, Minnesota Statutes 1957, 
4.21 	section  135.41, subdivision 4, Minnesota Statutes 1971, section  354.09, subdivision 2, or 
4.22 	Minnesota Statutes, 1973 Supplement, section  354.09, subdivision 3, or 
4.23 	(6) Both service during years of actual membership in the course of which 
4.24 	contributions were currently made and service in years during which the teacher was not a 
4.25 	member but for which the teacher later elected to obtain credit by making payments to the 
4.26 	fund as permitted by any law then in effect, or
4.27 	(7) Any service rendered where contributions were made and no allowable service 
4.28 	credit was established because of the limitations contained in Minnesota Statutes 1957, 
4.29 	section  135.09, subdivision 2, as determined by the ratio between the amounts of money 
4.30 	credited to the teacher's account in a fiscal year and the maximum retirement contribution 
4.31 	allowable for that year, or 
4.32 	(8) MS 2002 (Expired)
4.33 	(9) A period of time during which a teacher who is a state employee was on strike 
4.34 	without pay, not to exceed a period of one year, if the teacher makes a payment in lieu of 
4.35 	salary deductions or makes a prior service credit purchase payment, whichever applies. If 
4.36 	the payment is made within 12 months, the payment by the teacher must be an amount 
5.1 	equal to the employee and employer contribution rates set forth in section  354.42, 
5.2 	subdivisions 2 and 3, applied to the teacher's rate of salary in effect on the conclusion of 
5.3 	the strike for the period of the strike without pay, plus compound interest at a monthly rate 
5.4 	of 0.71 percent from the last day of the strike until the date of payment. If the payment by 
5.5 	the employee is not made within 12 months, the payment must be in an amount equal to 
5.6 	the payment amount determined under section  356.55 or  356.551, whichever applies, or
5.7 	(10) A period of service before July 1, 2006, that was properly credited as allowable 
5.8 	service by the Minneapolis Teachers Retirement Fund Association, was certified by the 
5.9 	executive director of the association, and that was rendered by a teacher as an employee 
5.10 	of Special School District No. 1, Minneapolis, or by an employee of the Minneapolis 
5.11 	Teachers Retirement Fund Association who was a member of the Minneapolis Teachers 
5.12 	Retirement Fund Association by virtue of that employment, who has not begun receiving 
5.13 	an annuity or other retirement benefit from the former Minneapolis Teachers Retirement 
5.14 	Fund Association calculated in whole or in part on that service before July 1, 2006, and 
5.15 	who has not taken a refund of member contributions related to that service unless the 
5.16 	refund is repaid under section 354.50, subdivision 4. 

5.17 	Sec. 6. Minnesota Statutes 2004, section 354.42, subdivision 2, is amended to read:
5.18 		Subd. 2.Employee. (a) The employee contribution to the fund is an amount equal 
5.19 	to 5.0 the following percentage of the salary of a member:
5.20 	(1) after July 1, 2006, for a teacher employed by Special School District No. 1, 
5.21 	Minneapolis, 5.5 percent if the teacher is a coordinated member, and 9.0 percent if the 
5.22 	teacher is a basic member;
5.23 	(2) for every other teacher, after July 1, 2006, 5.5 percent of if the salary of every
5.24 	teacher is a coordinated member and 9.0 percent of if the salary of every teacher is a
5.25 	basic member.
5.26 	(b) This contribution must be made by deduction from salary. Where any portion 
5.27 	of a member's salary is paid from other than public funds, the member's employee 
5.28 	contribution must be based on the entire salary received.

5.29 	Sec. 7. Minnesota Statutes 2004, section 354.42, subdivision 3, is amended to read:
5.30 		Subd. 3.Employer. (a) The regular employer contribution to the fund by Special 
5.31 	School District No. 1, Minneapolis, after July 1, 2006, and before July 1, 2007, is an 
5.32 	amount equal to 5.00 percent of the salary of each of its teachers who is a coordinated 
5.33 	member and 9.00 percent of the salary of each of its teachers who is a basic member. After 
5.34 	July 1, 2007, the regular employer contribution to the fund by Special School District No. 
6.1 	1, Minneapolis, is an amount equal to 5.50 percent of salary of each coordinated member 
6.2 	and 9.50 percent of salary of each basic member. The additional employer contribution to 
6.3 	the fund by Special School District No. 1, Minneapolis, after July 1, 2006, is an amount 
6.4 	equal to 3.64 percent of the salary of each teacher who is a coordinated member or is a 
6.5 	basic member.
6.6 	(b) The employer contribution to the fund for every other employer, is an amount 
6.7 	equal to 5.0 percent of the salary of each coordinated member and 9.0 percent of the salary 
6.8 	of each basic member before July 1, 2007, and 5.5 percent of the salary of each coordinated 
6.9 	member and 9.5 percent of the salary of each basic member after June 30, 2007.

6.10 	Sec. 8. Minnesota Statutes 2005 Supplement, section 354.44, subdivision 6, is 
6.11 	amended to read:
6.12 		Subd. 6.Computation of formula program retirement annuity. (a) The formula 
6.13 	retirement annuity must be computed in accordance with the applicable provisions of the 
6.14 	formulas stated in paragraph (b) or (d) on the basis of each member's average salary under 
6.15 	section 354.05, subdivision 13a, for the period of the member's formula service credit.
6.16 	(b) This paragraph, in conjunction with paragraph (c), applies to a person who first 
6.17 	became a member of the association or a member of a pension fund listed in section 
6.18 	356.30, subdivision 3, before July 1, 1989, unless paragraph (d), in conjunction with 
6.19 	paragraph (e), produces a higher annuity amount, in which case paragraph (d) applies. The 
6.20 	average salary as defined in section 354.05, subdivision 13a, multiplied by the following 
6.21 	percentages per year of formula service credit shall determine the amount of the annuity to 
6.22 	which the member qualifying therefor is entitled for service rendered before July 1, 2006:

6.23				Coordinated Member
		Basic Member
	
6.24
6.25
6.26
6.27
6.28		Each year of service 
during first ten
		the percent specified 
in section 356.315, 
subdivision 1, per year
		the percent 
specified in 
section 356.315, 
subdivision 3, per 
year
	
6.29
6.30
6.31
6.32
6.33		Each year of service 
thereafter
		the percent specified 
in section 356.315, 
subdivision 2, per year
		the percent 
specified in 
section 356.315, 
subdivision 4, per 
year
	
7.1 	For service rendered on or after July 1, 2006, the average salary as defined in section 
7.2 	354.05, subdivision 13a, multiplied by the following percentages per year of service 
7.3 	credit, determines the amount the annuity to which the member qualifying therefor is:

7.4				Coordinated Member
		Basic Member
	
7.5
7.6
7.7
7.8
7.9		Each year of service 
during first ten
		the percent specified 
in section 356.315, 
subdivision 1a, per year
		the percent 
specified in 
section 356.315, 
subdivision 3, per 
year
	
7.10
7.11
7.12
7.13
7.14		Each year of service after 
ten years of service
		the percent specified 
in section 356.315, 
subdivision 2b, per year
		the percent 
specified in 
section 356.315, 
subdivision 4, per 
year
	
7.15 	(c)(i) This paragraph applies only to a person who first became a member of the 
7.16 	association or a member of a pension fund listed in section 356.30, subdivision 3, before 
7.17 	July 1, 1989, and whose annuity is higher when calculated under paragraph (b), in 
7.18 	conjunction with this paragraph than when calculated under paragraph (d), in conjunction 
7.19 	with paragraph (e).
7.20 	(ii) Where any member retires prior to normal retirement age under a formula 
7.21 	annuity, the member shall be paid a retirement annuity in an amount equal to the normal 
7.22 	annuity provided in paragraph (b) reduced by one-quarter of one percent for each month 
7.23 	that the member is under normal retirement age at the time of retirement except that for 
7.24 	any member who has 30 or more years of allowable service credit, the reduction shall be 
7.25 	applied only for each month that the member is under age 62.
7.26 	(iii) Any member whose attained age plus credited allowable service totals 90 years 
7.27 	is entitled, upon application, to a retirement annuity in an amount equal to the normal 
7.28 	annuity provided in paragraph (b), without any reduction by reason of early retirement.
7.29 	(d) This paragraph applies to a member who has become at least 55 years old and 
7.30 	first became a member of the association after June 30, 1989, and to any other member 
7.31 	who has become at least 55 years old and whose annuity amount when calculated under 
7.32 	this paragraph and in conjunction with paragraph (e), is higher than it is when calculated 
7.33 	under paragraph (b), in conjunction with paragraph (c). For a basic member, the average 
7.34 	salary, as defined in section 354.05, subdivision 13a, multiplied by the percent specified 
7.35 	by section 356.315, subdivision 4, for each year of service for a basic member and by 
8.1 	the percent specified in section 356.315, subdivision 2, for each year of service for a 
8.2 	coordinated member shall determine the amount of the retirement annuity to which the 
8.3 	basic member is entitled. The annuity of a basic member who was a member for the 
8.4 	former Minneapolis Teachers Retirement Fund Association as of June 30, 2006, must 
8.5 	be determined according to the annuity formula under the articles of incorporation of 
8.6 	the former Minneapolis Teachers Retirement Fund Association in effect as of that date. 
8.7 	For a coordinated member, the average salary, as defined in section 354.05, subdivision 
8.8 	13a, multiplied by the percent specified in section 356.315, subdivision 2, for each year 
8.9 	of service rendered before July 1, 2006, and by the percent specified in section 356.315, 
8.10 	subdivision 2b, for each year of service rendered on or after July 1, 2006, determines the 
8.11 	amount of the retirement annuity to which the coordinated member is entitled.
8.12 	(e) This paragraph applies to a person who has become at least 55 years old and first 
8.13 	becomes a member of the association after June 30, 1989, and to any other member who 
8.14 	has become at least 55 years old and whose annuity is higher when calculated under 
8.15 	paragraph (d) in conjunction with this paragraph than when calculated under paragraph 
8.16 	(b), in conjunction with paragraph (c). An employee who retires under the formula annuity 
8.17 	before the normal retirement age shall be paid the normal annuity provided in paragraph 
8.18 	(d) reduced so that the reduced annuity is the actuarial equivalent of the annuity that would 
8.19 	be payable to the employee if the employee deferred receipt of the annuity and the annuity 
8.20 	amount were augmented at an annual rate of three percent compounded annually from the 
8.21 	day the annuity begins to accrue until the normal retirement age.
8.22 	(f) No retirement annuity is payable to a former employee with a salary that exceeds 
8.23 	95 percent of the governor's salary unless and until the salary figures used in computing 
8.24 	the highest five successive years average salary under paragraph (a) have been audited by 
8.25 	the Teachers Retirement Association and determined by the executive director to comply 
8.26 	with the requirements and limitations of section 354.05, subdivisions 35 and 35a.

8.27 	Sec. 9. [354.70] CONSOLIDATION OF MINNEAPOLIS TEACHERS 
8.28 	RETIREMENT FUND ASSOCIATION.
8.29 		Subdivision 1.Membership transfer. All active, inactive, and retired members of 
8.30 	the Minneapolis Teachers Retirement Fund Association are transferred to the Teachers 
8.31 	Retirement Association and are no longer members of the Minneapolis Teachers 
8.32 	Retirement Fund Association as of July 1, 2006.
8.33 		Subd. 2.TRA membership. A person first hired as a teacher by Special School 
8.34 	District No. 1, Minneapolis, after June 30, 2006, and who is a teacher as defined in 
9.1 	section 354.05, subdivision 2, is a member of the Teachers Retirement Association for the 
9.2 	person's teaching service.
9.3 		Subd. 3.Service credit and liability transfer. All allowable service and salary 
9.4 	credit of the members and other individuals transferred under subdivision 1 as specified in 
9.5 	the records of the Minneapolis Teachers Retirement Fund Association on the transfer date 
9.6 	is allowable service credit under section 354.05, subdivision 13, formula service credit 
9.7 	under section 354.05, subdivision 25, and salary credit under section 354.05, subdivision 
9.8 	35, for the Teachers Retirement Association.
9.9 		Subd. 4.Transfer of records. On or before June 30, 2007, the chief administrative 
9.10 	officer of the Minneapolis Teachers Retirement Fund Association shall effect a transfer of 
9.11 	all records and documents relating to the funds and the benefit plans of the association 
9.12 	to the executive director of the Teachers Retirement Association. To the extent possible, 
9.13 	original copies of all records and documents must be transferred. The chief administrative 
9.14 	officer of the Minneapolis Teachers Retirement Fund Association shall certify the accuracy 
9.15 	of all records and documents for which the transfer of original copies was not possible.
9.16 		Subd. 5.Transfer of assets. (a) On or before June 30, 2006, the chief administrative 
9.17 	officer of the Minneapolis Teachers Retirement Fund Association shall transfer to the 
9.18 	Teachers Retirement Association the entire assets of the special retirement fund of the 
9.19 	Minneapolis Teachers Retirement Fund Association. The transfer of the assets of the 
9.20 	Minneapolis Teachers Retirement Fund Association special retirement fund must include 
9.21 	any accounts receivable that are determined by the executive director of the State Board of 
9.22 	Investment as reasonably capable of being collected. Legal title to account receivables that 
9.23 	are determined by the executive director of the State Board of Investment as not reasonably 
9.24 	capable of being collected transfers to Special School District No. 1, Minneapolis, as of 
9.25 	the date of the determination of the executive director of the State Board of Investment. 
9.26 	If the account receivables transferred to Special School District No. 1, Minneapolis, 
9.27 	are subsequently recovered by the school district, the superintendent of Special School 
9.28 	District No. 1, Minneapolis, shall transfer the recovered amount to the executive director 
9.29 	of the Teachers Retirement Association, in cash, for deposit in the teachers retirement 
9.30 	fund, less the reasonable expenses of the school district related to the recovery.
9.31 	(b) As of June 30, 2006, subject to the authority of the State Board of Investment, 
9.32 	the board of directors of the Teachers Retirement Association has legal title to and 
9.33 	management responsibility for any transferred assets under this subdivision as trustees for 
9.34 	any person having a beneficial interest in the former Minneapolis Teachers Retirement 
9.35 	Fund Association. The Teachers Retirement Association is the successor in interest for 
9.36 	all claims for and against the former coordinated and basic programs of the Minneapolis 
10.1 	Teachers Retirement Fund Association special retirement fund with respect to the 
10.2 	retirement fund association, except a claim against the Minneapolis Teachers Retirement 
10.3 	Fund Association or any person connected with the Minneapolis Teachers Retirement 
10.4 	Fund Association special retirement fund in a fiduciary capacity, based on any act or 
10.5 	acts by that person which were not done in good faith and which constituted a breach of 
10.6 	the obligation of the person as a fiduciary. As the successor in interest, the Teachers 
10.7 	Retirement Association shall assert any applicable defense in any judicial proceeding 
10.8 	which the board of the former Minneapolis Teachers Retirement Fund Association 
10.9 	would have otherwise been entitled to assert relating to the special retirement fund and 
10.10 	shall indemnify the board for any action in accordance with the provisions of the Public 
10.11 	Pension Fiduciary Responsibility Act, section 356A.11. Such indemnification shall not be 
10.12 	unreasonably withheld.
10.13 	(c) From the assets of the former Minneapolis Teachers Retirement Fund Association 
10.14 	transferred to the Teachers Retirement Association, an amount equal to the percentage 
10.15 	figure that represents the ratio between the market value of the Minnesota postretirement 
10.16 	investment fund as of June 30, 2006, and the required reserves of the Minnesota post 
10.17 	retirement investment fund as of June 30, 2006, applied to the present value of future 
10.18 	benefits payable to annuitants of the former Minneapolis Teachers Retirement Fund 
10.19 	Association as of June 30, 2006, including any postretirement adjustment from the 
10.20 	Minnesota postretirement investment fund expected to be payable on January 1, 2007, 
10.21 	must be transferred to the Minnesota postretirement investment fund. The executive 
10.22 	director of the State Board of Investment shall estimate this ratio at the time of the 
10.23 	transfer. By January 1, 2007, after all necessary financial information becomes available 
10.24 	to determine the actual funded ratio of the Minnesota postretirement investment fund, the 
10.25 	postretirement investment fund must refund to the Teachers Retirement Association any 
10.26 	excess assets or the Teachers Retirement Association must contribute any deficiency 
10.27 	to the Minnesota postretirement investment fund with interest under section 11A.18, 
10.28 	subdivision 6. The balance of the assets of the former Minneapolis Teachers Retirement 
10.29 	Fund Association after the transfer to the Minnesota postretirement investment fund must 
10.30 	be credited to the Teachers Retirement Association.
10.31 	If the assets transferred by the Minneapolis Teachers Retirement Fund Association 
10.32 	to the Teachers Retirement Association are insufficient to meet its obligation to the 
10.33 	Minnesota postretirement investment fund, additional assets must be transferred by the 
10.34 	executive director of the Teachers Retirement Association to meet the amount required.
10.35 		Subd. 6.Benefit calculation. (a) For every deferred, inactive, disabled, and retired 
10.36 	member of the Minneapolis Teachers Retirement Fund Association transferred under 
11.1 	subdivision 1, and the survivors of these members, annuities or benefits earned before 
11.2 	the date of the transfer, other than future postretirement adjustments, must be calculated 
11.3 	and paid by the Teachers Retirement Association under the laws, articles of incorporation, 
11.4 	and bylaws of the former Minneapolis Teachers Retirement Fund Association that were 
11.5 	in effect relative to the person on the date of the person's termination of active service 
11.6 	covered by the former Minneapolis Teachers Retirement Fund Association.
11.7 	(b) Former Minneapolis Teachers Retirement Fund Association members who retired 
11.8 	before July 1, 2006, must receive postretirement adjustments after December 31, 2006, 
11.9 	only as provided in section 11A.18. All other benefit recipients of the former Minneapolis 
11.10 	Teachers Retirement Fund Association must receive postretirement adjustments after 
11.11 	December 31, 2006, only as provided in section 356.41.
11.12 	(c) This consolidation does not impair or diminish benefits for an active, deferred, 
11.13 	or retired member or a survivor of an active, deferred, or retired member under the 
11.14 	former Minneapolis Teachers Retirement Fund Association in existence at the time of 
11.15 	the consolidation, with the exception of any future guaranteed or investment-related 
11.16 	postretirement adjustments which must be paid after July 1, 2006, in accordance with 
11.17 	paragraph (b).
11.18 		Subd. 7.Termination of Minneapolis Teachers Retirement Fund Association 
11.19 	special retirement fund. (a) As of June 30, 2007, and upon the transfer of administration, 
11.20 	records, assets, and liabilities from the Minneapolis Teachers Retirement Fund Association 
11.21 	to the Teachers Retirement Association, the Minneapolis Teachers Retirement Fund 
11.22 	Association special retirement fund ceases to exist as a legal entity and public pension 
11.23 	plan. If the Minneapolis Teachers Retirement Fund Association has a general fund on 
11.24 	December 31, 2007, the general fund may continue to exist as a legal entity under 
11.25 	its articles of incorporation at the will of the members of the Minneapolis Teachers 
11.26 	Retirement Fund Association. If the Minneapolis Teachers Retirement Fund Association 
11.27 	does not have a general fund as of December 31, 2007, the board of the Minneapolis 
11.28 	Teachers Retirement Fund Association may establish a general fund, which may conduct 
11.29 	business on behalf of the Minneapolis Teachers Retirement Fund Association as the board 
11.30 	of the Minneapolis Teachers Retirement Fund Association may direct.
11.31 	(b) The reasonable and necessary costs arising from the consolidation must be paid 
11.32 	by the Minneapolis Teachers Retirement Fund Association from the special retirement 
11.33 	fund as these costs are incurred and are considered to be authorized expenses of the fund. 
11.34 	If the expenses are incurred after the transfer date of assets of the special retirement 
11.35 	fund and before the termination of the pension plan, the chief executive officer of 
11.36 	the Minneapolis Teachers Retirement Fund Association may certify monthly to the 
12.1 	executive director of the Teachers Retirement Association and the executive director of 
12.2 	the  Teachers Retirement Association shall pay to the Minneapolis Teachers Retirement 
12.3 	Fund Association the amounts needed by the Minneapolis Teachers Retirement Fund 
12.4 	Association to pay the actual, reasonable, and necessary administrative expenses of the 
12.5 	retirement office that are due and payable, including:
12.6 	(1) office expenses, including, but not limited to, rent, utilities, equipment, supplies, 
12.7 	postage, periodical subscriptions, furniture, fixtures, salaries, and employee benefits of 
12.8 	administrative personnel;
12.9 	(2) salaries and expenses of the executive director and office staff of the association 
12.10 	authorized by the board of trustees;
12.11 	(3) audit, actuarial, medical, and legal expenses; and 
12.12 	(4) any other actual, reasonable, and necessary expenses of the association 
12.13 	authorized by the board of trustees.
12.14 	(c) Contract liabilities and obligations of the Minneapolis Teachers Retirement Fund 
12.15 	Association special retirement fund existing at the time of consolidation or termination of 
12.16 	the Minneapolis Teachers Retirement Fund Association special retirement fund are fully 
12.17 	enforceable liabilities and obligations of the Teachers Retirement Association.

12.18 	Sec. 10. [354.75] MINNEAPOLIS EMPLOYEES RETIREMENT FUND STATE 
12.19 	AID REDEDICATED.
12.20 		Subdivision 1.Appropriation. The positive difference, if any, between the actual 
12.21 	state aid paid to the Minneapolis Employees Retirement fund under section 422A.101, 
12.22 	subdivision 3, and $8,065,000 annually is appropriated from the general fund to the 
12.23 	commissioner of finance for deposit in the Teachers Retirement Association to offset all or 
12.24 	a portion of the current and future unfunded actuarial accrued liability of the Minneapolis 
12.25 	Teachers Retirement Fund Association.
12.26 		Subd. 2.Financial requirements. The appropriation in subdivision 1 is available 
12.27 	to the extent that financial requirements of the Minneapolis Employees Retirement Fund 
12.28 	under section 422A.101, subdivision 3, have been satisfied.

12.29 	Sec. 11. Minnesota Statutes 2004, section 354A.011, subdivision 15a, is amended to 
12.30 	read:
12.31 		Subd. 15a.Normal retirement age. "Normal retirement age" means age 65 for 
12.32 	a person who first became a member of the coordinated program of the Minneapolis or
12.33 	St. Paul Teachers Retirement Fund Association or the new law coordinated program of 
12.34 	the Duluth Teachers Retirement Fund Association or a member of a pension fund listed 
13.1 	in section  356.30, subdivision 3, before July 1, 1989. For a person who first became a 
13.2 	member of the coordinated program of the Minneapolis or St. Paul Teachers Retirement 
13.3 	Fund Association or the new law coordinated program of the Duluth Teachers Retirement 
13.4 	Fund Association after June 30, 1989, normal retirement age means the higher of age 65 
13.5 	or retirement age, as defined in United States Code, title 42, section 416(l), as amended, 
13.6 	but not to exceed age 66. For a person who is a member of the basic program of the 
13.7 	Minneapolis or St. Paul Teachers Retirement Fund Association or the old law coordinated 
13.8 	program of the Duluth Teachers Retirement Fund Association, normal retirement age 
13.9 	means the age at which a teacher becomes eligible for a normal retirement annuity 
13.10 	computed upon meeting the age and service requirements specified in the applicable 
13.11 	provisions of the articles of incorporation or bylaws of the respective teachers retirement 
13.12 	fund association. 

13.13 	Sec. 12. Minnesota Statutes 2004, section 354A.011, subdivision 27, is amended to 
13.14 	read:
13.15 		Subd. 27.Teacher. (a) "Teacher" means any person who renders service for a public 
13.16 	school district, other than a charter school, located in the corporate limits of one of the 
13.17 	cities of the first class which was so classified on January 1, 1979 Duluth and St. Paul, 
13.18 	as any of the following:
13.19 	(1) a full-time employee in a position for which a valid license from the state 
13.20 	Department of Education is required;
13.21 	(2) an employee of the teachers retirement fund association located in the city of 
13.22 	the first class unless the employee has exercised the option pursuant to Laws 1955, 
13.23 	chapter 10, section 1, to retain membership in the Minneapolis Employees Retirement 
13.24 	Fund established pursuant to chapter 422A;
13.25 	(3) a part-time employee in a position for which a valid license from the state 
13.26 	Department of Education is required; or
13.27 	(4) a part-time employee in a position for which a valid license from the state 
13.28 	Department of Education is required who also renders other nonteaching services for the 
13.29 	school district, unless the board of trustees of the teachers retirement fund association 
13.30 	determines that the combined employment is on the whole so substantially dissimilar to 
13.31 	teaching service that the service may not be covered by the association.
13.32 	(b) The term does not mean any person who renders service in the school district 
13.33 	as any of the following:
13.34 	(1) an independent contractor or the employee of an independent contractor;
14.1 	(2) an employee who is a full-time teacher covered by the Teachers Retirement 
14.2 	Association or by another teachers retirement fund association established pursuant to this 
14.3 	chapter or chapter 354;
14.4 	(3) an employee exempt from licensure pursuant to section  122A.30; 
14.5 	(4) an employee who is a teacher in a technical college located in a city of the first 
14.6 	class unless the person elects coverage by the applicable first class city teacher retirement 
14.7 	fund association under section  354B.21, subdivision 2; 
14.8 	(5) a teacher employed by a charter school, irrespective of the location of the 
14.9 	school; or
14.10 	(6) an employee who is a part-time teacher in a technical college in a city of the first 
14.11 	class and who has elected coverage by the applicable first class city teacher retirement 
14.12 	fund association under section  354B.21, subdivision 2, but (i) the teaching service is 
14.13 	incidental to the regular nonteaching occupation of the person; (ii) the applicable technical 
14.14 	college stipulates annually in advance that the part-time teaching service will not exceed 
14.15 	300 hours in a fiscal year; and (iii) the part-time teaching actually does not exceed 300 
14.16 	hours in the fiscal year to which the certification applies. 

14.17 	Sec. 13. Minnesota Statutes 2004, section 354A.021, subdivision 1, is amended to read:
14.18 		Subdivision 1.Establishment. There is established a teachers retirement fund 
14.19 	association in each of the cities of the first class which were so classified on January 1, 
14.20 	1979 Duluth and St. Paul. The associations shall be known respectively as the "Duluth 
14.21 	Teachers Retirement Fund Association," the "Minneapolis Teachers Retirement Fund 
14.22 	Association" and the "St. Paul Teachers Retirement Fund Association." Each association 
14.23 	shall be a continuation of the teachers retirement fund association with the same corporate 
14.24 	name established pursuant to the authorization contained in Laws 1909, chapter 343, 
14.25 	section 1.

14.26 	Sec. 14. Minnesota Statutes 2004, section 354A.092, is amended to read:
14.27 	354A.092 SABBATICAL LEAVE.
14.28 	Any teacher in the coordinated program of either the Minneapolis Teachers 
14.29 	Retirement Fund Association or the St. Paul Teachers Retirement Fund Association or 
14.30 	any teacher in the new law coordinated program of the Duluth Teachers Retirement 
14.31 	Fund Association who is granted a sabbatical leave shall be entitled to receive allowable 
14.32 	service credit in the applicable association for periods of sabbatical leave. To obtain the 
14.33 	service credit, the teacher on sabbatical leave shall make an employee contribution to the 
14.34 	applicable association. No teacher shall be entitled to receive more than three years of 
15.1 	allowable service credit pursuant to this section for a period or periods of sabbatical 
15.2 	leave during any ten consecutive fiscal or calendar years, whichever is the applicable 
15.3 	plan year for the teachers retirement fund association. If the teacher granted a sabbatical 
15.4 	leave makes the employee contribution for a period of sabbatical leave pursuant to this 
15.5 	section, the employing unit shall make an employer contribution on behalf of the teacher 
15.6 	to the applicable association for that period of sabbatical leave in the manner described 
15.7 	in section  354A.12, subdivision 2a. The employee and employer contributions shall be 
15.8 	in an amount equal to the employee and employer contribution rates in effect for other 
15.9 	active members of the association covered by the same program applied to a salary figure 
15.10 	equal to the teacher's actual covered salary for the plan year immediately preceding the 
15.11 	sabbatical leave period. Payment of the employee contribution authorized pursuant to this 
15.12 	section shall be made by the teacher on or before June 30 of year next following the year 
15.13 	in which the sabbatical leave terminated and shall be made without interest. For sabbatical 
15.14 	leaves taken after June 30, 1986, the required employer contributions shall be paid by the 
15.15 	employing unit within 30 days after notification by the association of the amount due. 
15.16 	If the employee contributions for the sabbatical leave period are less than an amount 
15.17 	equal to the applicable contribution rate applied to a salary figure equal to the teacher's 
15.18 	actual covered salary for the plan year immediately preceding the sabbatical leave period, 
15.19 	service credit shall be prorated. The prorated service credit shall be determined by the 
15.20 	ratio between the amount of the actual payment which was made and the full contribution 
15.21 	amount payable pursuant to this section. 

15.22 	Sec. 15. Minnesota Statutes 2004, section 354A.093, subdivision 1, is amended to read:
15.23 		Subdivision 1.Eligibility. Any teacher in the coordinated program of either the 
15.24 	Minneapolis Teachers Retirement Fund Association or the St. Paul Teachers Retirement 
15.25 	Fund Association or any teacher in the new law coordinated program of the Duluth 
15.26 	Teachers Retirement Fund Association who is absent from employment by reason of 
15.27 	service in the uniformed services as defined in United States Code, title 38, section 
15.28 	4303(13) and who returns to the employer providing active teaching service upon 
15.29 	discharge from uniformed service within the time frames required under United States 
15.30 	Code, title 38, section 4312(e), may receive allowable service credit in the applicable 
15.31 	association for all or a portion of the period of uniformed service, provided that the teacher 
15.32 	did not separate from uniformed service with a dishonorable or bad conduct discharge 
15.33 	or under other than honorable conditions.

16.1 	Sec. 16. Minnesota Statutes 2004, section 354A.095, is amended to read:
16.2 	354A.095 PARENTAL AND MATERNITY LEAVE.
16.3 	Basic or coordinated members of the St. Paul Teachers Retirement Fund 
16.4 	Association, the Minneapolis Teachers Retirement Fund Association, and new coordinated 
16.5 	members of the Duluth Teachers Retirement Fund Association, who are granted parental 
16.6 	or maternity leave of absence by the employing authority, are entitled to obtain service 
16.7 	credit not to exceed one year for the period of leave upon payment to the applicable 
16.8 	fund by the end of the fiscal year following the fiscal year in which the leave of absence 
16.9 	terminated. The amount of the payment must include the total required employee and 
16.10 	employer contributions for the period of leave prescribed in section  354A.12. Payment 
16.11 	must be based on the member's average monthly salary rate upon return to teaching 
16.12 	service, and is payable without interest. Payment must be accompanied by a certified or 
16.13 	otherwise adequate copy of the resolution or action of the employing authority granting 
16.14 	or approving the leave. 

16.15 	Sec. 17. Minnesota Statutes 2004, section 354A.096, is amended to read:
16.16 	354A.096 MEDICAL LEAVE.
16.17 	Any teacher in the coordinated program of either the Minneapolis Teachers 
16.18 	Retirement Fund Association or the St. Paul Teachers Retirement Fund Association or the 
16.19 	new law coordinated program of the Duluth Teachers Retirement Fund Association who is 
16.20 	on an authorized medical leave of absence and subsequently returns to teaching service 
16.21 	is entitled to receive allowable service credit, not to exceed one year, for the period of 
16.22 	leave, upon making the prescribed payment to the fund. This payment must include the 
16.23 	required employee and employer contributions at the rates specified in section  354A.12, 
16.24 	subdivisions 1 and 2, as applied to the member's average full-time monthly salary rate on 
16.25 	the date the leave of absence commenced plus annual interest at the rate of 8.5 percent per 
16.26 	year from the end of the fiscal year during which the leave terminates to the end of the 
16.27 	month during which payment is made. The member must pay the total amount required 
16.28 	unless the employing unit, at its option, pays the employer contributions. The total amount 
16.29 	required must be paid by the end of the fiscal year following the fiscal year in which the 
16.30 	leave of absence terminated or before the member retires, whichever is earlier. Payment 
16.31 	must be accompanied by a copy of the resolution or action of the employing authority 
16.32 	granting the leave and the employing authority, upon granting the leave, must certify 
16.33 	the leave to the association in a manner specified by the executive director. A member 
16.34 	may not receive more than one year of allowable service credit during any fiscal year by 
16.35 	making payment under this section. A member may not receive disability benefits under 
17.1 	section  354A.36 and receive allowable service credit under this section for the same 
17.2 	period of time. 

17.3 	Sec. 18. Minnesota Statutes 2004, section 354A.12, subdivision 1, is amended to read:
17.4 		Subdivision 1.Employee contributions. The contribution required to be paid by 
17.5 	each member of a teachers retirement fund association shall not be less than the percentage 
17.6 	of total salary specified below for the applicable association and program:

17.7	Association and Program
		Percentage of
	
17.8				Total Salary
	
17.9	Duluth Teachers Retirement Association
			
17.10		old law and new law
			
17.11		coordinated programs
		5.5 percent
	
17.12
17.13	Minneapolis Teachers Retirement 
Association
			
17.14		basic program
		8.5 percent
	
17.15		coordinated program
		5.5 percent
	
17.16	St. Paul Teachers Retirement Association
			
17.17		basic program
		8 percent
	
17.18		coordinated program
		5.5 percent
	
17.19 	Contributions shall be made by deduction from salary and must be remitted directly 
17.20 	to the respective teachers retirement fund association at least once each month.

17.21 	Sec. 19. Minnesota Statutes 2004, section 354A.12, subdivision 2, is amended to read:
17.22 		Subd. 2.Retirement contribution levy disallowed. Except as provided in 
17.23 	subdivision 3b and in section   423A.02, subdivision 3, with respect to the city of 
17.24 	Minneapolis and special school district No. 1 and in section   423A.02, subdivision 3, with 
17.25 	respect to independent school district No. 625, notwithstanding any law to the contrary, 
17.26 	levies for teachers retirement fund associations in the cities of the first class Duluth and St. 
17.27 	Paul, including levies for any employer Social Security taxes for teachers covered by the 
17.28 	Duluth Teachers Retirement Fund Association or the Minneapolis Teachers Retirement 
17.29 	Fund Association or the St. Paul Teachers Retirement Fund Association, are disallowed. 

17.30 	Sec. 20. Minnesota Statutes 2004, section 354A.12, subdivision 2a, is amended to read:
18.1 		Subd. 2a.Employer regular and additional contribution rates. (a) The 
18.2 	employing units shall make the following employer contributions to teachers retirement 
18.3 	fund associations:
18.4 	(1)  for any coordinated member of a teachers retirement fund association in a city 
18.5 	of the first class, the employing unit shall pay the employer Social Security taxes in 
18.6 	accordance with section   355.46, subdivision 3, clause (b); 
18.7 	(2) for any coordinated member of one of the following teachers retirement fund 
18.8 	associations in a city of the first class, the employing unit shall make a regular employer 
18.9 	contribution to the respective retirement fund association in an amount equal to the 
18.10 	designated percentage of the salary of the coordinated member as provided below:

18.11		Duluth Teachers Retirement
		
18.12		Fund Association
	4.50 percent
	
18.13		Minneapolis Teachers Retirement
		
18.14		Fund Association
	4.50 percent
	
18.15		St. Paul Teachers Retirement
		
18.16		Fund Association
	4.50 percent
	
18.17 	(3) for any basic member of one of the following St. Paul Teachers Retirement 
18.18 	Fund associations in a city of the first class Association, the employing unit shall make a 
18.19 	regular employer contribution to the respective retirement fund in an amount equal to the 
18.20 	designated percentage 8.00 percent of the salary of the basic member as provided below:;

18.21		Minneapolis Teachers Retirement
		
18.22		Fund Association
	8.50 percent
	
18.23		St. Paul Teachers Retirement
		
18.24		Fund Association
	8.00 percent
	
18.25 	(4) for a basic member of a the St. Paul Teachers Retirement Fund Association in a 
18.26 	city of the first class, the employing unit shall make an additional employer contribution to 
18.27 	the respective fund in an amount equal to the designated percentage 3.64 percentof the 
18.28 	salary of the basic member, as provided below:;

18.29		Minneapolis Teachers Retirement
		
18.30		Fund Association
		
18.31			July 1, 1993 - June 30, 1994
	4.85 percent
	
18.32			July 1, 1994, and thereafter
	3.64 percent
	
19.1		St. Paul Teachers Retirement
		
19.2		Fund Association
		
19.3			July 1, 1993 - June 30, 1995
	4.63 percent
	
19.4			July 1, 1995, and thereafter
	3.64 percent
	
19.5 	(5) for a coordinated member of a teachers retirement fund association in a city 
19.6 	of the first class, the employing unit shall make an additional employer contribution to 
19.7 	the respective fund in an amount equal to the applicable percentage of the coordinated 
19.8 	member's salary, as provided below:

19.9		Duluth Teachers Retirement
		
19.10		Fund Association
	1.29 percent
	
19.11		Minneapolis Teachers Retirement
		
19.12		Fund Association
		
19.13			July 1, 1993 - June 30, 1994
	0.50 percent
	
19.14			July 1, 1994, and thereafter
	3.64 percent
	
19.15		St. Paul Teachers Retirement
		
19.16		Fund Association
		
19.17			July 1, 1993 - June 30, 1994
	0.50 percent
	
19.18			July 1, 1994 - June 30, 1995
	1.50 percent
	
19.19			July 1, 1997, and thereafter
	3.84 percent
	
19.20 	(b) The regular and additional employer contributions must be remitted directly to 
19.21 	the respective teachers retirement fund association at least once each month. Delinquent 
19.22 	amounts are payable with interest under the procedure in subdivision 1a.
19.23 	(c) Payments of regular and additional employer contributions for school district 
19.24 	or technical college employees who are paid from normal operating funds must be made 
19.25 	from the appropriate fund of the district or technical college.

19.26 	Sec. 21. Minnesota Statutes 2004, section 354A.12, subdivision 3a, is amended to read:
19.27 		Subd. 3a.Special direct state aid to first class city teachers retirement fund 
19.28 	associations. (a) In fiscal year 1998, the state shall pay $4,827,000 to the St. Paul 
19.29 	Teachers Retirement Fund Association, $17,954,000 to the Minneapolis Teachers 
19.30 	Retirement Fund Association, and $486,000 to the Duluth Teachers Retirement Fund 
19.31 	Association. In each subsequent fiscal year after fiscal year 2006, these payments to the 
20.1 	first class city teachers retirement fund associations must be $2,827,000 for St. Paul, 
20.2 	$12,954,000 to the Teachers Retirement Association for the former Minneapolis Teachers 
20.3 	Retirement Fund Association, and $486,000 for Duluth.
20.4 	(b) The direct state aids under this subdivision are payable October 1 annually. The 
20.5 	commissioner of finance shall pay the direct state aid. The amount required under this 
20.6 	subdivision is appropriated annually from the general fund to the commissioner of finance.

20.7 	Sec. 22. Minnesota Statutes 2004, section 354A.12, subdivision 3b, is amended to read:
20.8 		Subd. 3b.Special direct state matching aid to the Minneapolis Teachers 
20.9 	Retirement Fund Association. (a) Special School District No. 1 may must make 
20.10 	an additional employer contribution to the Minneapolis Teachers Retirement Fund 
20.11 	Association. The city of Minneapolis may must make a contribution to the Minneapolis
20.12 	Teachers Retirement Fund Association. This contribution may must be made by a levy 
20.13 	of the board of estimate and taxation of the city of Minneapolis and the levy, if made, is 
20.14 	classified as that of a special taxing district for purposes of sections   275.065 and   276.04, 
20.15 	and for all other property tax purposes. 
20.16 	(b) For every $1,000 $1,125,000 must be contributed in equal proportion by Special 
20.17 	School District No. 1 and $1,125,000 must be contributed by the city of Minneapolis to 
20.18 	the Minneapolis Teachers Retirement Fund Association under paragraph (a), and the 
20.19 	state shall pay to the Minneapolis Teachers Retirement Fund Association $1,000, but not 
20.20 	to exceed $2,500,000 in total in each fiscal year 1994. The superintendent of Special 
20.21 	School District No. 1, the mayor of the city of Minneapolis, and the executive director 
20.22 	of the Minneapolis Teachers Retirement Fund Association shall jointly certify to the 
20.23 	commissioner of finance the total amount that has been contributed by Special School 
20.24 	District No. 1 and by the city of Minneapolis to the Minneapolis Teachers Retirement 
20.25 	Fund Association. Any certification to the commissioner of education must be made 
20.26 	quarterly. If the total certifications for a fiscal year exceed the maximum annual direct state 
20.27 	matching aid amount in any quarter, the amount of direct state matching aid payable to the 
20.28 	Minneapolis Teachers Retirement Fund Association must be limited to the balance of the 
20.29 	maximum annual direct state matching aid amount available. The amount required under 
20.30 	this paragraph, subject to the maximum direct state matching aid amount, is appropriated 
20.31 	annually to the commissioner of finance.
20.32 	(c) The commissioner of finance may prescribe the form of the certifications 
20.33 	required under paragraph (b).

20.34 	Sec. 23. Minnesota Statutes 2004, section 354A.12, subdivision 3c, is amended to read:
21.1 		Subd. 3c.Termination of supplemental contributions and direct matching 
21.2 	and state aid. (a) The supplemental contributions payable to the Minneapolis Teachers 
21.3 	Retirement Fund Association by Special School District No. 1 and the city of Minneapolis 
21.4 	under section   423A.02, subdivision 3, which must continue to be paid to the Teachers 
21.5 	Retirement Association until 2037, or to the St. Paul Teachers Retirement Fund 
21.6 	Association by Independent School District No. 625 under section   423A.02, subdivision 
21.7 	3, or the direct state aids under subdivision 3a to the first class city St. Paul Teachers 
21.8 	Retirement associations, and the direct matching and state aid under subdivision 3b to 
21.9 	the Minneapolis Teachers Retirement Fund Association terminate for the respective fund
21.10 	at the end of the fiscal year in which the accrued liability funding ratio for that fund, as 
21.11 	determined in the most recent actuarial report for that fund by the actuary retained by the 
21.12 	Legislative Commission on Pensions and Retirement, equals or exceeds the accrued 
21.13 	liability funding ratio for the teachers retirement association, as determined in the most 
21.14 	recent actuarial report for the Teachers Retirement Association by the actuary retained by 
21.15 	the Legislative Commission on Pensions and Retirement. 
21.16 	(b) If the state direct matching, state supplemental, or state aid is terminated for a 
21.17 	first class city teachers retirement fund association under paragraph (a), it may not again 
21.18 	be received by that fund.
21.19 	(c) If either the Minneapolis Teachers Retirement Fund Association, the St. 
21.20 	Paul Teachers Retirement Fund Association, or the Duluth Teachers Retirement Fund 
21.21 	Association remain is funded at less than the funding ratio applicable to the Teachers 
21.22 	Retirement Association when the provisions of paragraph (b) become effective, then any 
21.23 	state aid not previously distributed to that association must be immediately transferred to 
21.24 	the other associations in proportion to the relative sizes of their unfunded actuarial accrued 
21.25 	liabilities Teachers Retirement Association.

21.26 	Sec. 24. Minnesota Statutes 2004, section 354A.12, subdivision 3d, is amended to read:
21.27 		Subd. 3d.Supplemental administrative expense assessment. (a) The active 
21.28 	and retired membership of the Minneapolis Teachers Retirement Fund Association and 
21.29 	of the St. Paul Teachers Retirement Fund Association is responsible for defraying 
21.30 	supplemental administrative expenses other than investment expenses of the respective 
21.31 	teacher retirement fund association.
21.32 	(b) Investment expenses of the teachers retirement fund association are those 
21.33 	expenses incurred by or on behalf of the retirement fund in connection with the investment 
21.34 	of the assets of the retirement fund other than investment security transaction costs. Other 
21.35 	administrative expenses are all expenses incurred by or on behalf of the retirement fund 
22.1 	for all other retirement fund functions other than the investment of retirement fund assets. 
22.2 	Investment and other administrative expenses must be accounted for using generally 
22.3 	accepted accounting principles and in a manner consistent with the comprehensive annual 
22.4 	financial report of the teachers retirement fund association for the immediately previous 
22.5 	fiscal year under section   356.20. 
22.6 	(c) Supplemental administrative expenses other than investment expenses of a first 
22.7 	class city teacher the St. Paul Teachers Retirement Fund Association are those expenses 
22.8 	for the fiscal year that:
22.9 	(1) exceed, for the St. Paul Teachers Retirement Fund Association, $443,745, or 
22.10 	for the Minneapolis Teacher Retirement Fund Association $671,513, plus, in each case,
22.11 	an additional amount derived by applying the percentage increase in the Consumer Price 
22.12 	Index for Urban Wage Earners and Clerical Workers All Items Index published by the 
22.13 	Bureau of Labor Statistics of the United States Department of Labor since July 1, 2001, to 
22.14 	the applicable dollar amount; and
22.15 	(2)  exceed the amount computed by applying the most recent percentage of 
22.16 	pay administrative expense amount, other than investment expenses, for the teachers 
22.17 	retirement association governed by chapter 354 to the covered payroll of the respective 
22.18 	teachers retirement fund association for the fiscal year.
22.19 	(d) The board of trustees of each first class city the St. Paul Teachers Retirement 
22.20 	Fund Association shall allocate the total dollar amount of supplemental administrative 
22.21 	expenses other than investment expenses determined under paragraph (c), clause (2), 
22.22 	among the various active and retired membership groups of the teachers retirement fund 
22.23 	association and shall assess the various membership groups their respective share of 
22.24 	the supplemental administrative expenses other than investment expenses, in amounts 
22.25 	determined by the board of trustees. The supplemental administrative expense assessments 
22.26 	must be paid by the membership group in a manner determined by the board of trustees 
22.27 	of the respective teachers retirement association. Supplemental administrative expenses 
22.28 	payable by the active members of the pension plan must be picked up by the employer in 
22.29 	accordance with section   356.62. 
22.30 	(e) With respect to the St. Paul Teachers Retirement Fund Association, the 
22.31 	supplemental administrative expense assessment must be fully disclosed to the various 
22.32 	active and retired membership groups of the teachers retirement fund association. The 
22.33 	chief administrative officer of the St. Paul Teachers Retirement Fund Association shall 
22.34 	prepare a supplemental administrative expense assessment disclosure notice, which must 
22.35 	include the following:
23.1 	(1) the total amount of administrative expenses of the St. Paul Teachers Retirement 
23.2 	Fund Association, the amount of the investment expenses of the St. Paul Teachers 
23.3 	Retirement Fund Association, and the net remaining amount of administrative expenses of 
23.4 	the St. Paul Teachers Retirement Fund Association;
23.5 	(2) the amount of administrative expenses for the St. Paul Teachers Retirement Fund 
23.6 	Association that would be equivalent to the teachers retirement association noninvestment 
23.7 	administrative expense level described in paragraph (c);
23.8 	(3) the total amount of supplemental administrative expenses required for assessment 
23.9 	calculated under paragraph (c);
23.10 	(4) the portion of the total amount of the supplemental administrative expense 
23.11 	assessment allocated to each membership group and the rationale for that allocation;
23.12 	(5) the manner of collecting the supplemental administrative expense assessment 
23.13 	from each membership group, the number of assessment payments required during the 
23.14 	year, and the amount of each payment or the procedure used to determine each payment; 
23.15 	and
23.16 	(6) any other information that the chief administrative officer determines is necessary 
23.17 	to fairly portray the manner in which the supplemental administrative expense assessment 
23.18 	was determined and allocated.
23.19 	(f) The disclosure notice must be provided annually in the annual report of the 
23.20 	association.
23.21 	(g)  The supplemental administrative expense assessments must be deposited in the 
23.22 	applicable teachers retirement fund upon receipt.
23.23 	(h)  Any omitted active membership group assessments that remain undeducted 
23.24 	and unpaid to the teachers retirement fund association for 90 days must be paid by the 
23.25 	respective school district. The school district may recover any omitted active membership 
23.26 	group assessment amounts that it has previously paid. The teachers retirement fund 
23.27 	association shall deduct any omitted retired membership group assessment amounts from 
23.28 	the benefits next payable after the discovery of the omitted amounts.

23.29 	Sec. 25. Minnesota Statutes 2004, section 354A.30, is amended to read:
23.30 	354A.30 MINNEAPOLIS AND ST. PAUL TEACHERS RETIREMENT FUND 
23.31 	ASSOCIATIONS ASSOCIATION; COORDINATED PROGRAM.
23.32 	There is established a coordinated program within the Minneapolis Teachers 
23.33 	Retirement Fund Association and a coordinated program within the St. Paul Teachers 
23.34 	Retirement Fund Association to provide retirement coverage for teachers who are covered 
23.35 	by an agreement or modification made between the state and the secretary of health, 
24.1 	education and welfare making the provisions of the federal Old Age, Survivors and 
24.2 	Disability Insurance Act applicable to certain teachers covered by the teachers retirement 
24.3 	fund association. The provisions governing the coordinated program shall be sections  
24.4 	354A.31 to  354A.41 and any other applicable provisions of this chapter. 

24.5 	Sec. 26. Minnesota Statutes 2005 Supplement, section 354A.31, subdivision 4, is 
24.6 	amended to read:
24.7 		Subd. 4.Computation of the normal coordinated retirement annuity; 
24.8 	Minneapolis and St. Paul funds fund. (a) This subdivision applies to the coordinated 
24.9 	programs program of the Minneapolis Teachers Retirement Fund Association and the St. 
24.10 	Paul Teachers Retirement Fund Association.
24.11 	(b) The normal coordinated retirement annuity is an amount equal to a retiring 
24.12 	coordinated member's average salary under section 354A.011, subdivision 7a, multiplied 
24.13 	by the retirement annuity formula percentage.
24.14 	(c) This paragraph, in conjunction with subdivision 6, applies to a person who first 
24.15 	became a member or a member in a pension fund listed in section 356.30, subdivision 3, 
24.16 	before July 1, 1989, unless paragraph (d), in conjunction with subdivision 7, produces a 
24.17 	higher annuity amount, in which case paragraph (d) will apply. The retirement annuity 
24.18 	formula percentage for purposes of this paragraph is the percent specified in section 
24.19 	356.315, subdivision 1, per year for each year of coordinated service for the first ten years 
24.20 	and the percent specified in section 356.315, subdivision 2, for each year of coordinated 
24.21 	service thereafter.
24.22 	(d) This paragraph applies to a person who has become at least 55 years old and who 
24.23 	first becomes a member after June 30, 1989, and to any other member who has become 
24.24 	at least 55 years old and whose annuity amount, when calculated under this paragraph 
24.25 	and in conjunction with subdivision 7 is higher than it is when calculated under paragraph 
24.26 	(c), in conjunction with the provisions of subdivision 6. The retirement annuity formula 
24.27 	percentage for purposes of this paragraph is the percent specified in section 356.315, 
24.28 	subdivision 2, for each year of coordinated service.

24.29 	Sec. 27. Minnesota Statutes 2004, section 354A.32, subdivision 1, is amended to read:
24.30 		Subdivision 1.Optional forms generally. The boards board of the Minneapolis and 
24.31 	the St. Paul Teachers Retirement Fund Associations Association shall each establish for the 
24.32 	coordinated program and the board of the Duluth Teachers Retirement Fund Association 
24.33 	shall establish for the new law coordinated program an optional retirement annuity which 
24.34 	shall take the form of a joint and survivor annuity. Each board may also in its discretion 
25.1 	establish an optional annuity which shall take the form of an annuity payable for a period 
25.2 	certain and for life thereafter. Each board shall also establish an optional retirement 
25.3 	annuity that guarantees payment of the balance of the annuity recipient's accumulated 
25.4 	deductions to a designated beneficiary upon the death of the annuity recipient. Except as 
25.5 	provided in subdivision 1a, optional annuity forms shall be the actuarial equivalent of the 
25.6 	normal forms provided in section  354A.31. In establishing these optional annuity forms, 
25.7 	the board shall obtain the written recommendation of the commission-retained actuary. 
25.8 	The recommendation shall be a part of the permanent records of the board. 

25.9 	Sec. 28. Minnesota Statutes 2004, section 354A.39, is amended to read:
25.10 	354A.39 SERVICE IN OTHER PUBLIC RETIREMENT FUNDS; ANNUITY.
25.11 	Any person who has been a member of the Minnesota State Retirement System, the 
25.12 	Public Employees Retirement Association including the Public Employees Retirement 
25.13 	Association Police and Fire Fund, the Teachers Retirement Association, the Minnesota 
25.14 	State Patrol Retirement Association, the legislators retirement plan, the constitutional 
25.15 	officers retirement plan, the Minneapolis Employees Retirement Fund, the Duluth 
25.16 	Teachers Retirement Fund Association new law coordinated program, the Minneapolis 
25.17 	Teachers Retirement Fund Association coordinated program, the St. Paul Teachers 
25.18 	Retirement Fund Association coordinated program, or any other public employee 
25.19 	retirement system in the state of Minnesota having a like provision but excluding all other 
25.20 	funds providing retirement benefits for police officers or firefighters shall be entitled 
25.21 	when qualified to an annuity from each fund if the person's total allowable service in all 
25.22 	of the funds or in any two or more of the funds totals three or more years, provided that 
25.23 	no portion of the allowable service upon which the retirement annuity from one fund is 
25.24 	based is used again in the computation for a retirement annuity from another fund and 
25.25 	provided further that the person has not taken a refund from any of funds or associations 
25.26 	since the person's membership in the fund or association has terminated. The annuity 
25.27 	from each fund or association shall be determined by the appropriate provisions of the 
25.28 	law governing each fund or association, except that the requirement that a person must 
25.29 	have at least three years of allowable service in the respective fund or association shall not 
25.30 	apply for the purposes of this section, provided that the aggregate service in two or more 
25.31 	of these funds equals three or more years.

25.32 	Sec. 29. Minnesota Statutes 2004, section 354A.40, subdivision 1, is amended to read:
25.33 		Subdivision 1.Retirement annuity. Any coordinated member of either the 
25.34 	Minneapolis Teachers Retirement Fund Association or of the St. Paul Teachers Retirement 
26.1 	Fund Association who has credited service prior to July 1, 1978 shall be entitled to 
26.2 	receive a retirement annuity when otherwise qualified, the calculation of which shall 
26.3 	utilize the applicable retirement annuity formula specified in articles of incorporation and 
26.4 	bylaws of the teachers retirement fund association governing the basic program for that 
26.5 	portion of credited service which was served prior to July 1, 1978, and the retirement 
26.6 	annuity formula specified in section  354A.31 for the remainder of the member's credited 
26.7 	service, both applied to the member's average salary as specified in section  354A.31, 
26.8 	subdivision 4. The formula percentages to be used in calculating the coordinated portion 
26.9 	of the retirement annuity or coordinated service under this section shall recognize the 
26.10 	coordinated service as a continuation of any service prior to July 1, 1978. 

26.11 	Sec. 30. Minnesota Statutes 2004, section 354A.41, is amended to read:
26.12 	354A.41 ADMINISTRATION OF COORDINATED PROGRAM.
26.13 		Subdivision 1.Administrative provisions. The provisions of the articles of 
26.14 	incorporation and bylaws of the Minneapolis or the St. Paul Teachers Retirement Fund 
26.15 	Association, whichever is applicable, relating to the administration of the fund shall govern 
26.16 	the administration of the coordinated program and basic programs and the provisions of the 
26.17 	articles of incorporation and bylaws of the Duluth Teachers Retirement Fund Association 
26.18 	relating to the administration of the fund shall govern the administration of the new law 
26.19 	coordinated program in instances where the administrative provisions are not inconsistent 
26.20 	with the provisions of sections  354A.31 to  354A.41, including but not limited to 
26.21 	provisions relating to the composition and function of the board of trustees, the investment 
26.22 	of assets of the teachers retirement fund association, and the definition of the plan year. 
26.23 	The administrative provisions in the articles of incorporation and the bylaws of the 
26.24 	Minneapolis Teachers Retirement Fund Association pertaining to the granting of pension 
26.25 	benefits of the basic and coordinated programs are no longer in effect after June 30, 2006. 
26.26 	After June 30, 2006, if the Minneapolis Teachers Retirement Fund Association continues 
26.27 	to exist as a nonprofit organization, the board shall adopt the appropriate amendments to 
26.28 	its bylaws and articles of incorporation to reflect its change in status and operation.
26.29 		Subd. 2.Actuarial valuations. In any actuarial valuation of the Minneapolis 
26.30 	Teachers Retirement Fund Association, the St. Paul Teachers Retirement Fund 
26.31 	Association, or the Duluth Teachers Retirement Fund Association under section  356.215
26.32 	prepared by the commission-retained actuary or supplemental actuarial valuation prepared 
26.33 	by an approved actuary retained by the teachers retirement fund association, there shall 
26.34 	be included a finding of the condition of the fund showing separately the basic and 
26.35 	coordinated programs or the old law coordinated and new law coordinated programs, as 
27.1 	appropriate. The finding shall include the level normal cost and the applicable employee 
27.2 	and employer contribution rates for each program. 

27.3 	Sec. 31. Minnesota Statutes 2004, section 356.20, subdivision 2, is amended to read:
27.4 		Subd. 2.Covered public pension plans and funds. This section applies to the 
27.5 	following public pension plans:
27.6 	(1) the general state employees retirement plan of the Minnesota State Retirement 
27.7 	System;
27.8 	(2) the general employees retirement plan of the Public Employees Retirement 
27.9 	Association;
27.10 	(3) the Teachers Retirement Association;
27.11 	(4)  the State Patrol retirement plan;
27.12 	(5) the Minneapolis Teachers Retirement Fund Association;
27.13 	(6) the St. Paul Teachers Retirement Fund Association;
27.14 	(7) (6) the Duluth Teachers Retirement Fund Association;
27.15 	(8) (7) the Minneapolis Employees Retirement Fund;
27.16 	(9) (8) the University of Minnesota faculty retirement plan;
27.17 	(10) (9) the University of Minnesota faculty supplemental retirement plan;
27.18 	(11) (10) the judges retirement fund;
27.19 	(12) (11) a police or firefighter's relief association specified or described in section   
27.20 	69.77, subdivision 1a, or   69.771, subdivision 1; 
27.21 	(13) (12) the public employees police and fire plan of the Public Employees 
27.22 	Retirement Association;
27.23 	(14) (13) the correctional state employees retirement plan of the Minnesota State 
27.24 	Retirement System; and
27.25 	(15) (14) the local government correctional service retirement plan of the Public 
27.26 	Employees Retirement Association.

27.27 	Sec. 32. Minnesota Statutes 2004, section 356.214, subdivision 1, is amended to read:
27.28 		Subdivision 1.Joint retention. (a) The chief administrative officers of the 
27.29 	Minnesota State Retirement System, the Public Employees Retirement Association, the 
27.30 	Teachers Retirement Association, the Duluth Teachers Retirement Fund Association, 
27.31 	the Minneapolis Teachers Retirement Fund Association, the Minneapolis Employees 
27.32 	Retirement Fund, and the St. Paul Teachers Retirement Fund Association, jointly, on 
27.33 	behalf of the state, its employees, its taxpayers, and its various public pension plans, 
27.34 	shall contract with an established actuarial consulting firm to conduct annual actuarial 
28.1 	valuations and related services for the retirement plans named in paragraph (b). The 
28.2 	principal from the actuarial consulting firm on the contract must be an approved actuary 
28.3 	under section  356.215, subdivision 1, paragraph (c). Prior to becoming effective, 
28.4 	the contract under this section is subject to a review and approval by the Legislative 
28.5 	Commission on Pensions and Retirement. 
28.6 	(b) The contract for actuarial services must include the preparation of actuarial 
28.7 	valuations and related actuarial work for the following retirement plans:
28.8 	(1) the teachers retirement plan, Teachers Retirement Association;
28.9 	(2) the general state employees retirement plan, Minnesota State Retirement System;
28.10 	(3) the correctional employees retirement plan, Minnesota State Retirement System;
28.11 	(4) the State Patrol retirement plan, Minnesota State Retirement System;
28.12 	(5) the judges retirement plan, Minnesota State Retirement System;
28.13 	(6) the Minneapolis employees retirement plan, Minneapolis Employees Retirement 
28.14 	Fund;
28.15 	(7) the public employees retirement plan, Public Employees Retirement Association;
28.16 	(8) the public employees police and fire plan, Public Employees Retirement 
28.17 	Association;
28.18 	(9) the Duluth teachers retirement plan, Duluth Teachers Retirement Fund 
28.19 	Association;
28.20 	(10) the Minneapolis teachers retirement plan, Minneapolis Teachers Retirement 
28.21 	Fund Association;
28.22 	(11) (10) the St. Paul teachers retirement plan, St. Paul Teachers Retirement Fund 
28.23 	Association;
28.24 	(12) (11) the legislators retirement plan, Minnesota State Retirement System;
28.25 	(13) (12) the elective state officers retirement plan, Minnesota State Retirement 
28.26 	System; and
28.27 	(14) (13) local government correctional service retirement plan, Public Employees 
28.28 	Retirement Association.
28.29 	(c) The contract must require completion of the annual actuarial valuation 
28.30 	calculations on a fiscal year basis, with the contents of the actuarial valuation calculations 
28.31 	as specified in section  356.215, and in conformity with the standards for actuarial work 
28.32 	adopted by the Legislative Commission on Pensions and Retirement. 
28.33 	The contract must require completion of annual experience data collection and 
28.34 	processing and a quadrennial published experience study for the plans listed in paragraph 
28.35 	(b), clauses (1), (2), and (7), as provided for in the standards for actuarial work adopted by 
29.1 	the commission. The experience data collection, processing, and analysis must evaluate 
29.2 	the following:
29.3 	(1) individual salary progression;
29.4 	(2) the rate of return on investments based on the current asset value;
29.5 	(3) payroll growth;
29.6 	(4) mortality;
29.7 	(5) retirement age;
29.8 	(6) withdrawal; and
29.9 	(7) disablement.
29.10 	The contract must include provisions for the preparation of cost analyses by the 
29.11 	jointly retained actuary for proposed legislation that include changes in benefit provisions 
29.12 	or funding policies prior to their consideration by the Legislative Commission on Pensions 
29.13 	and Retirement.
29.14 	(d) The actuary retained by the joint retirement systems shall annually prepare a 
29.15 	report to the legislature, including a commentary on the actuarial valuation calculations 
29.16 	for the plans named in paragraph (b) and summarizing the results of the actuarial valuation 
29.17 	calculations. The actuary shall include with the report the actuary's recommendations 
29.18 	to the legislature concerning the appropriateness of the support rates to achieve proper 
29.19 	funding of the retirement plans by the required funding dates. The actuary shall, as part 
29.20 	of the quadrennial experience study, include recommendations to the legislature on the 
29.21 	appropriateness of the actuarial valuation assumptions required for evaluation in the study.
29.22 	(e) If the actuarial gain and loss analysis in the actuarial valuation calculations 
29.23 	indicates a persistent pattern of sizable gains or losses, as directed by the joint retirement 
29.24 	systems or as requested by the chair of the Legislative Commission on Pensions and 
29.25 	Retirement, the actuary shall prepare a special experience study for a plan listed in 
29.26 	paragraph (b), clause (3), (4), (5), (6), (8), (9), (10), (11), (12), (13), or (14) (13), in the 
29.27 	manner provided for in the standards for actuarial work adopted by the commission.
29.28 	(f) The term of the contract between the joint retirement systems and the actuary 
29.29 	retained may not exceed five years. The joint retirement system administrative officers 
29.30 	shall establish procedures for the consideration and selection of contract bidders and 
29.31 	the requirements for the contents of an actuarial services contract under this section. 
29.32 	The procedures and requirements must be submitted to the Legislative Commission on 
29.33 	Pensions and Retirement for review and comment prior to final approval by the joint 
29.34 	administrators. The contract is subject to the procurement procedures under chapter 16C. 
29.35 	The consideration of bids and the selection of a consulting actuarial firm by the chief 
29.36 	administrative officers must occur at a meeting that is open to the public and reasonable 
30.1 	timely public notice of the date and the time of the meeting and its subject matter must 
30.2 	be given.
30.3 	(g) The actuarial services contract may not limit the ability of the Minnesota 
30.4 	legislature and its standing committees and commissions to rely on the actuarial results 
30.5 	of the work prepared under the contract.
30.6 	(h) The joint retirement systems shall designate one of the retirement system 
30.7 	executive directors as the actuarial services contract manager.

30.8 	Sec. 33. Minnesota Statutes 2005 Supplement, section 356.215, subdivision 8, is 
30.9 	amended to read:
30.10 		Subd. 8.Interest and salary assumptions. (a) The actuarial valuation must use 
30.11 	the applicable following preretirement interest assumption and the applicable following 
30.12 	postretirement interest assumption:

30.13		preretirement
	postretirement
	
30.14		interest rate
	interest rate
	
30.15	plan
	assumption
	assumption

30.16	general state employees retirement plan
		8.5%
	6.0%
	
30.17
30.18	correctional state employees retirement 
plan
		8.5
	6.0
	
30.19	State Patrol retirement plan
		8.5
	6.0
	
30.20	legislators retirement plan
		8.5
	6.0
	
30.21	elective state officers retirement plan
		8.5
	6.0
	
30.22	judges retirement plan
		8.5
	6.0
	
30.23
30.24	general public employees retirement 
plan
		8.5
	6.0
	
30.25
30.26	public employees police and fire 
retirement plan
		8.5
	6.0
	
30.27
30.28	local government correctional service 
retirement plan
		8.5
	6.0
	
30.29	teachers retirement plan
		8.5
	6.0
	
30.30	Minneapolis employees retirement plan
		6.0
	5.0
	
30.31	Duluth teachers retirement plan
		8.5
	8.5
	
31.1	Minneapolis teachers retirement plan
		8.5
	8.5
	
31.2	St. Paul teachers retirement plan
		8.5
	8.5
	
31.3	Minneapolis Police Relief Association
		6.0
	6.0
	
31.4	Fairmont Police Relief Association
		5.0
	5.0
	
31.5
31.6	Minneapolis Fire Department Relief 
Association
		6.0
	6.0
	
31.7
31.8	Virginia Fire Department Relief 
Association
		5.0
	5.0
	
31.931.10
	Bloomington Fire Department Relief 
Association
		6.0
	6.0
	
31.11
31.12	local monthly benefit volunteer 
firefighters relief associations
		5.0
	5.0
	
31.13 	(b) The actuarial valuation must use the applicable following single rate future salary 
31.14 	increase assumption, the applicable following modified single rate future salary increase 
31.15 	assumption, or the applicable following graded rate future salary increase assumption:
31.16 	(1) single rate future salary increase assumption

31.17		future salary
	
31.18	plan
	increase assumption

31.19	legislators retirement plan
		5.0%
	
31.20	elective state officers retirement plan
		5.0
	
31.21	judges retirement plan
		5.0
	
31.22	Minneapolis Police Relief Association
		4.0
	
31.23	Fairmont Police Relief Association
		3.5
	
31.24
31.25	Minneapolis Fire Department Relief 
Association
		4.0
	
31.26	Virginia Fire Department Relief Association
		3.5
	
31.27
31.28	Bloomington Fire Department Relief 
Association
		4.0
	
31.29 	(2) modified single rate future salary increase assumption

32.1			future salary
	
32.2	plan
		increase assumption
	
32.3
32.4
32.5
32.6
32.7	Minneapolis employees 
retirement plan
		the prior calendar year amount 
increased first by 1.0198 percent to 
prior fiscal year date and then increased 
by 4.0 percent annually for each future 
year
	
32.8 	(3) select and ultimate future salary increase assumption or graded rate future salary 
32.9 	increase assumption

32.10		future salary
	
32.11	plan
	increase assumption
	
32.12
32.13	general state employees 
retirement plan
	select calculation and assumption A
	
32.14
32.15	correctional state employees 
retirement plan
	assumption HG
	
32.16	State Patrol retirement plan
	assumption HG
	
32.17
32.18	general public employees 
retirement plan
	select calculation and assumption B
	
32.19
32.20	public employees police and fire 
fund retirement plan
	assumption C
	
32.21
32.22	local government correctional 
service retirement plan
	assumption HG
	
32.23	teachers retirement plan
	assumption D
	
32.24	Duluth teachers retirement plan
	assumption E
	
32.25
32.26	Minneapolis teachers retirement 
plan
	assumption F
	
32.27	St. Paul teachers retirement plan
	assumption GF

33.1
33.2
33.3
33.4
33.5
33.6
33.7
33.8
33.933.10
33.11
33.12
33.13
33.14
33.15
33.16
	The select calculation is: during the ten-year select 
period, a designated percent is multiplied by the result 
of ten minus T, where T is the number of completed 
years of service, and is added to the applicable future 
salary increase assumption. The designated percent 
is 0.2 percent for the correctional state employees 
retirement plan, the State Patrol retirement plan, 
the public employees police and fire plan, and the 
local government correctional service plan;  and 0.3 
percent for the general state employees retirement 
plan, the general public employees retirement plan, 
the teachers retirement plan, the Duluth Teachers 
Retirement Fund Association, and the St. Paul 
Teachers Retirement Fund Association; and 0.4 
percent for the Minneapolis Teachers Retirement 
Fund Association.
	
33.17 	The ultimate future salary increase assumption is:

33.18	age
	A
	B
	C
	D
	E
	F
	GF
	HG
	
33.19	16
	6.95%
	6.95%
	11.50%
	8.20%
	8.00%
	6.50%
	6.90%
	7.7500
	
33.20	17
	6.90
	6.90
	11.50
	8.15
	8.00
	6.50
	6.90
	7.7500
	
33.21	18
	6.85
	6.85
	11.50
	8.10
	8.00
	6.50
	6.90
	7.7500
	
33.22	19
	6.80
	6.80
	11.50
	8.05
	8.00
	6.50
	6.90
	7.7500
	
33.23	20
	6.75
	6.40
	11.50
	6.00
	6.90
	6.50
	6.90
	7.7500
	
33.24	21
	6.75
	6.40
	11.50
	6.00
	6.90
	6.50
	6.90
	7.1454
	
33.25	22
	6.75
	6.40
	11.00
	6.00
	6.90
	6.50
	6.90
	7.0725
	
33.26	23
	6.75
	6.40
	10.50
	6.00
	6.85
	6.50
	6.85
	7.0544
	
33.27	24
	6.75
	6.40
	10.00
	6.00
	6.80
	6.50
	6.80
	7.0363
	
33.28	25
	6.75
	6.40
	9.50
	6.00
	6.75
	6.50
	6.75
	7.0000
	
33.29	26
	6.75
	6.36
	9.20
	6.00
	6.70
	6.50
	6.70
	7.0000
	
33.30	27
	6.75
	6.32
	8.90
	6.00
	6.65
	6.50
	6.65
	7.0000
	
33.31	28
	6.75
	6.28
	8.60
	6.00
	6.60
	6.50
	6.60
	7.0000
	
33.32	29
	6.75
	6.24
	8.30
	6.00
	6.55
	6.50
	6.55
	7.0000
	
34.1	30
	6.75
	6.20
	8.00
	6.00
	6.50
	6.50
	6.50
	7.0000
	
34.2	31
	6.75
	6.16
	7.80
	6.00
	6.45
	6.50
	6.45
	7.0000
	
34.3	32
	6.75
	6.12
	7.60
	6.00
	6.40
	6.50
	6.40
	7.0000
	
34.4	33
	6.75
	6.08
	7.40
	6.00
	6.35
	6.50
	6.35
	7.0000
	
34.5	34
	6.75
	6.04
	7.20
	6.00
	6.30
	6.50
	6.30
	7.0000
	
34.6	35
	6.75
	6.00
	7.00
	6.00
	6.25
	6.50
	6.25
	7.0000
	
34.7	36
	6.75
	5.96
	6.80
	6.00
	6.20
	6.50
	6.20
	6.9019
	
34.8	37
	6.75
	5.92
	6.60
	6.00
	6.15
	6.50
	6.15
	6.8074
	
34.9	38
	6.75
	5.88
	6.40
	5.90
	6.10
	6.50
	6.10
	6.7125
	
34.10	39
	6.75
	5.84
	6.20
	5.80
	6.05
	6.50
	6.05
	6.6054
	
34.11	40
	6.75
	5.80
	6.00
	5.70
	6.00
	6.50
	6.00
	6.5000
	
34.12	41
	6.75
	5.76
	5.90
	5.60
	5.90
	6.50
	5.95
	6.3540
	
34.13	42
	6.75
	5.72
	5.80
	5.50
	5.80
	6.50
	5.90
	6.2087
	
34.14	43
	6.65
	5.68
	5.70
	5.40
	5.70
	6.50
	5.85
	6.0622
	
34.15	44
	6.55
	5.64
	5.60
	5.30
	5.60
	6.50
	5.80
	5.9048
	
34.16	45
	6.45
	5.60
	5.50
	5.20
	5.50
	6.50
	5.75
	5.7500
	
34.17	46
	6.35
	5.56
	5.45
	5.10
	5.40
	6.40
	5.70
	5.6940
	
34.18	47
	6.25
	5.52
	5.40
	5.00
	5.30
	6.30
	5.65
	5.6375
	
34.19	48
	6.15
	5.48
	5.35
	5.00
	5.20
	6.20
	5.60
	5.5822
	
34.20	49
	6.05
	5.44
	5.30
	5.00
	5.10
	6.10
	5.55
	5.5404
	
34.21	50
	5.95
	5.40
	5.25
	5.00
	5.00
	6.00
	5.50
	5.5000
	
34.22	51
	5.85
	5.36
	5.25
	5.00
	5.00
	5.90
	5.45
	5.4384
	
34.23	52
	5.75
	5.32
	5.25
	5.00
	5.00
	5.80
	5.40
	5.3776
	
34.24	53
	5.65
	5.28
	5.25
	5.00
	5.00
	5.70
	5.35
	5.3167
	
34.25	54
	5.55
	5.24
	5.25
	5.00
	5.00
	5.60
	5.30
	5.2826
	
34.26	55
	5.45
	5.20
	5.25
	5.00
	5.00
	5.50
	5.25
	5.2500
	
34.27	56
	5.35
	5.16
	5.25
	5.00
	5.00
	5.40
	5.20
	5.2500
	
34.28	57
	5.25
	5.12
	5.25
	5.00
	5.00
	5.30
	5.15
	5.2500
	
34.29	58
	5.25
	5.08
	5.25
	5.10
	5.00
	5.20
	5.10
	5.2500
	
35.1	59
	5.25
	5.04
	5.25
	5.20
	5.00
	5.10
	5.05
	5.2500
	
35.2	60
	5.25
	5.00
	5.25
	5.30
	5.00
	5.00
	5.00
	5.2500
	
35.3	61
	5.25
	5.00
	5.25
	5.40
	5.00
	5.00
	5.00
	5.2500
	
35.4	62
	5.25
	5.00
	5.25
	5.50
	5.00
	5.00
	5.00
	5.2500
	
35.5	63
	5.25
	5.00
	5.25
	5.60
	5.00
	5.00
	5.00
	5.2500
	
35.6	64
	5.25
	5.00
	5.25
	5.70
	5.00
	5.00
	5.00
	5.2500
	
35.7	65
	5.25
	5.00
	5.25
	5.70
	5.00
	5.00
	5.00
	5.2500
	
35.8	66
	5.25
	5.00
	5.25
	5.70
	5.00
	5.00
	5.00
	5.2500
	
35.9	67
	5.25
	5.00
	5.25
	5.70
	5.00
	5.00
	5.00
	5.2500
	
35.10	68
	5.25
	5.00
	5.25
	5.70
	5.00
	5.00
	5.00
	5.2500
	
35.11	69
	5.25
	5.00
	5.25
	5.70
	5.00
	5.00
	5.00
	5.2500
	
35.12	70
	5.25
	5.00
	5.25
	5.70
	5.00
	5.00
	5.00
	5.2500
	
35.13	71
	5.25
	5.00
		5.70
					
35.14 	(c) The actuarial valuation must use the applicable following payroll growth 
35.15 	assumption for calculating the amortization requirement for the unfunded actuarial 
35.16 	accrued liability where the amortization retirement is calculated as a level percentage 
35.17 	of an increasing payroll:

35.18		payroll growth
	
35.19	plan
	assumption

35.20	general state employees retirement plan
		5.00%
	
35.21	correctional state employees retirement plan
		5.00
	
35.22	State Patrol retirement plan
		5.00
	
35.23	legislators retirement plan
		5.00
	
35.24	elective state officers retirement plan
		5.00
	
35.25	judges retirement plan
		5.00
	
35.26	general public employees retirement plan
		6.00
	
35.27
35.28	public employees police and fire retirement 
plan
		6.00
	
35.29
35.30	local government correctional service 
retirement plan
		6.00
	
36.1	teachers retirement plan
		5.00
	
36.2	Duluth teachers retirement plan
		5.00
	
36.3	Minneapolis teachers retirement plan
		5.00
	
36.4	St. Paul teachers retirement plan
		5.00

36.5 	Sec. 34. Minnesota Statutes 2004, section 356.215, subdivision 11, is amended to read:
36.6 		Subd. 11.Amortization contributions. (a) In addition to the exhibit indicating the 
36.7 	level normal cost, the actuarial valuation must contain an exhibit indicating the additional 
36.8 	annual contribution sufficient to amortize the unfunded actuarial accrued liability. For 
36.9 	funds governed by chapters 3A, 352, 352B, 352C, 353, 354, 354A, and 490, the additional 
36.10 	contribution must be calculated on a level percentage of covered payroll basis by the 
36.11 	established date for full funding in effect when the valuation is prepared. For funds 
36.12 	governed by chapter 3A, sections    352.90 through    352.951, chapters 352B, 352C, sections    
36.13 	353.63 through    353.68, and chapters 353C, 354A, and 490, the level percent additional 
36.14 	contribution must be calculated assuming annual payroll growth of 6.5 percent. For funds 
36.15 	governed by sections    352.01 through    352.86 and chapter 354, the level percent additional 
36.16 	contribution must be calculated assuming an annual payroll growth of five percent. For the 
36.17 	fund governed by sections    353.01 through    353.46, the level percent additional contribution 
36.18 	must be calculated assuming an annual payroll growth of six percent. For all other funds, 
36.19 	the additional annual contribution must be calculated on a level annual dollar amount basis. 
36.20 	(b) For any fund other than the Minneapolis Employees Retirement Fund and the 
36.21 	Public Employees Retirement Association general plan, if there has not been a change in 
36.22 	the actuarial assumptions used for calculating the actuarial accrued liability of the fund, a 
36.23 	change in the benefit plan governing annuities and benefits payable from the fund, a 
36.24 	change in the actuarial cost method used in calculating the actuarial accrued liability of all 
36.25 	or a portion of the fund, or a combination of the three, which change or changes by itself 
36.26 	or by themselves without inclusion of any other items of increase or decrease produce a 
36.27 	net increase in the unfunded actuarial accrued liability of the fund, the established date for 
36.28 	full funding is the first actuarial valuation date occurring after June 1, 2020.
36.29 	(c) For any fund or plan other than the Minneapolis Employees Retirement Fund and 
36.30 	the Public Employees Retirement Association general plan, if there has been a change in 
36.31 	any or all of the actuarial assumptions used for calculating the actuarial accrued liability 
36.32 	of the fund, a change in the benefit plan governing annuities and benefits payable from 
36.33 	the fund, a change in the actuarial cost method used in calculating the actuarial accrued 
36.34 	liability of all or a portion of the fund, or a combination of the three, and the change or 
37.1 	changes, by itself or by themselves and without inclusion of any other items of increase or 
37.2 	decrease, produce a net increase in the unfunded actuarial accrued liability in the fund, the 
37.3 	established date for full funding must be determined using the following procedure:
37.4 	(i) the unfunded actuarial accrued liability of the fund must be determined in 
37.5 	accordance with the plan provisions governing annuities and retirement benefits and the 
37.6 	actuarial assumptions in effect before an applicable change;
37.7 	(ii) the level annual dollar contribution or level percentage, whichever is applicable, 
37.8 	needed to amortize the unfunded actuarial accrued liability amount determined under item 
37.9 	(i) by the established date for full funding in effect before the change must be calculated 
37.10 	using the interest assumption specified in subdivision 8 in effect before the change;
37.11 	(iii) the unfunded actuarial accrued liability of the fund must be determined in 
37.12 	accordance with any new plan provisions governing annuities and benefits payable from 
37.13 	the fund and any new actuarial assumptions and the remaining plan provisions governing 
37.14 	annuities and benefits payable from the fund and actuarial assumptions in effect before 
37.15 	the change;
37.16 	(iv) the level annual dollar contribution or level percentage, whichever is applicable, 
37.17 	needed to amortize the difference between the unfunded actuarial accrued liability amount 
37.18 	calculated under item (i) and the unfunded actuarial accrued liability amount calculated 
37.19 	under item (iii) over a period of 30 years from the end of the plan year in which the 
37.20 	applicable change is effective must be calculated using the applicable interest assumption 
37.21 	specified in subdivision 8 in effect after any applicable change;
37.22 	(v) the level annual dollar or level percentage amortization contribution under item 
37.23 	(iv) must be added to the level annual dollar amortization contribution or level percentage 
37.24 	calculated under item (ii);
37.25 	(vi) the period in which the unfunded actuarial accrued liability amount determined 
37.26 	in item (iii) is amortized by the total level annual dollar or level percentage amortization 
37.27 	contribution computed under item (v) must be calculated using the interest assumption 
37.28 	specified in subdivision 8 in effect after any applicable change, rounded to the nearest 
37.29 	integral number of years, but not to exceed 30 years from the end of the plan year in 
37.30 	which the determination of the established date for full funding using the procedure set 
37.31 	forth in this clause is made and not to be less than the period of years beginning in the 
37.32 	plan year in which the determination of the established date for full funding using the 
37.33 	procedure set forth in this clause is made and ending by the date for full funding in effect 
37.34 	before the change; and
38.1 	(vii) the period determined under item (vi) must be added to the date as of which 
38.2 	the actuarial valuation was prepared and the date obtained is the new established date 
38.3 	for full funding.
38.4 	(d) For the Minneapolis Employees Retirement Fund, the established date for full 
38.5 	funding is June 30, 2020.
38.6 	(e) For the general employees retirement plan of the Public Employees Retirement 
38.7 	Association, the established date for full funding is June 30, 2031.
38.8 	(f) For the Teachers Retirement Association, the established date for full funding is 
38.9 	June 30, 2037.
38.10 	(g)For the retirement plans for which the annual actuarial valuation indicates an 
38.11 	excess of valuation assets over the actuarial accrued liability, the valuation assets in 
38.12 	excess of the actuarial accrued liability must be recognized as a reduction in the current 
38.13 	contribution requirements by an amount equal to the amortization of the excess expressed 
38.14 	as a level percentage of pay over a 30-year period beginning anew with each annual 
38.15 	actuarial valuation of the plan.

38.16 	Sec. 35. Minnesota Statutes 2004, section 356.30, subdivision 3, is amended to read:
38.17 		Subd. 3.Covered plans. This section applies to the following retirement plans:
38.18 	(1) the general state employees retirement plan of the Minnesota State Retirement 
38.19 	System, established under chapter 352;
38.20 	(2) the correctional state employees retirement plan of the Minnesota State 
38.21 	Retirement System, established under chapter 352;
38.22 	(3) the unclassified employees retirement program, established under chapter 352D;
38.23 	(4) the State Patrol retirement plan, established under chapter 352B;
38.24 	(5) the legislators retirement plan, established under chapter 3A;
38.25 	(6) the elective state officers' retirement plan, established under chapter 352C;
38.26 	(7) the general employees retirement plan of the Public Employees Retirement 
38.27 	Association, established under chapter 353;
38.28 	(8) the public employees police and fire retirement plan of the Public Employees 
38.29 	Retirement Association, established under chapter 353;
38.30 	(9) the local government correctional service retirement plan of the Public 
38.31 	Employees Retirement Association, established under chapter 353E;
38.32 	(10) the Teachers Retirement Association, established under chapter 354;
38.33 	(11) the Minneapolis Employees Retirement Fund, established under chapter 422A;
38.34 	(12) the Minneapolis Teachers Retirement Fund Association, established under 
38.35 	chapter 354A;
39.1 	(13) (12) the St. Paul Teachers Retirement Fund Association, established under 
39.2 	chapter 354A;
39.3 	(14) (13) the Duluth Teachers Retirement Fund Association, established under 
39.4 	chapter 354A; and
39.5 	(15) (14) the judges' retirement fund, established by sections  490.121 to  490.132. 

39.6 	Sec. 36. Minnesota Statutes 2004, section 356.302, subdivision 7, is amended to read:
39.7 		Subd. 7.Covered retirement plans. This section applies to the following 
39.8 	retirement plans:
39.9 	(1) the general state employees retirement plan of the Minnesota State Retirement 
39.10 	System, established by chapter 352;
39.11 	(2) the unclassified state employees retirement program of the Minnesota State 
39.12 	Retirement System, established by chapter 352D;
39.13 	(3) the general employees retirement plan of the Public Employees Retirement 
39.14 	Association, established by chapter 353;
39.15 	(4) the Teachers Retirement Association, established by chapter 354;
39.16 	(5) the Duluth Teachers Retirement Fund Association, established by chapter 354A;
39.17 	(6) the Minneapolis Teachers Retirement Fund Association, established by chapter 
39.18 	354A;
39.19 	(7) (6) the St. Paul Teachers Retirement Fund Association, established by chapter 
39.20 	354A;
39.21 	(8)(7) the Minneapolis Employees Retirement Fund, established by chapter 422A;
39.22 	(9) (8) the state correctional employees retirement plan of the Minnesota State 
39.23 	Retirement System, established by chapter 352;
39.24 	(10) (9) the State Patrol retirement plan, established by chapter 352B;
39.25 	(11) (10) the public employees police and fire plan of the Public Employees 
39.26 	Retirement Association, established by chapter 353;
39.27 	(12) (11) the local government correctional service retirement plan of the Public 
39.28 	Employees Retirement Association, established by chapter 353E; and
39.29 	(13) (12) the judges' retirement plan, established by sections  490.121 to  490.132. 

39.30 	Sec. 37. Minnesota Statutes 2004, section 356.303, subdivision 4, is amended to read:
39.31 		Subd. 4.Covered retirement plans. This section applies to the following 
39.32 	retirement plans:
39.33 	(1) the legislators retirement plan, established by chapter 3A;
40.1 	(2) the general state employees retirement plan of the Minnesota State Retirement 
40.2 	System, established by chapter 352;
40.3 	(3) the correctional state employees retirement plan of the Minnesota State 
40.4 	Retirement System, established by chapter 352;
40.5 	(4) the State Patrol retirement plan, established by chapter 352B;
40.6 	(5) the elective state officers retirement plan, established by chapter 352C;
40.7 	(6) the unclassified state employees retirement program, established by chapter 
40.8 	352D;
40.9 	(7) the general employees retirement plan of the Public Employees Retirement 
40.10 	Association, established by chapter 353;
40.11 	(8) the public employees police and fire plan of the Public Employees Retirement 
40.12 	Association, established by chapter 353;
40.13 	(9) the local government correctional service retirement plan of the Public 
40.14 	Employees Retirement Association, established by chapter 353E;
40.15 	(10) the Teachers Retirement Association, established by chapter 354;
40.16 	(11) the Duluth Teachers Retirement Fund Association, established by chapter 354A;
40.17 	(12) the Minneapolis Teachers Retirement Fund Association, established by chapter 
40.18 	354A;
40.19 	(13) (12) the St. Paul Teachers Retirement Fund Association, established by chapter 
40.20 	354A;
40.21 	(14) (13) the Minneapolis Employees Retirement Fund, established by chapter 
40.22 	422A; and
40.23 	(15) (14) the judges' retirement fund, established by sections  490.121 to  490.132. 

40.24 	Sec. 38. Minnesota Statutes 2004, section 356.315, is amended by adding a subdivision 
40.25 	to read:
40.26 		Subd. 1a.Coordinated plan members. The applicable benefit accrual rate is 
40.27 	1.4 percent.

40.28 	Sec. 39. Minnesota Statutes 2004, section 356.315, is amended by adding a subdivision 
40.29 	to read:
40.30 		Subd. 2b.Certain coordinated program members. The applicable benefit accrual 
40.31 	rate is 1.9 percent.

40.32 	Sec. 40. Minnesota Statutes 2004, section 356.42, subdivision 3, is amended to read:
41.1 		Subd. 3.Covered retirement plans. The postretirement adjustment provided in 
41.2 	this section applies to the following retirement funds:
41.3 	(1) the general employees retirement plans of the Public Employees Retirement 
41.4 	Association;
41.5 	(2) the public employees police and fire plan of the Public Employees Retirement 
41.6 	Association;
41.7 	(3) the teachers retirement association;
41.8 	(4) the State Patrol retirement plan;
41.9 	(5) the state employees retirement plan of the Minnesota State Retirement System;
41.10 	(6) the Minneapolis Teachers Retirement Fund Association established under 
41.11 	chapter 354A;
41.12 	(7) (6) the St. Paul Teachers Retirement Fund Association established under chapter 
41.13 	354A; and
41.14 	(8) (7) the Duluth Teachers Retirement Fund Association established under chapter 
41.15 	354A.

41.16 	Sec. 41. Minnesota Statutes 2004, section 356.465, subdivision 3, is amended to read:
41.17 		Subd. 3.Covered retirement plans. The provisions of this section apply to the 
41.18 	following retirement plans:
41.19 	(1) the general state employees retirement plan of the Minnesota State Retirement 
41.20 	System established under chapter 352;
41.21 	(2) the correctional state employees retirement plan of the Minnesota State 
41.22 	Retirement System established under chapter 352;
41.23 	(3) the State Patrol retirement plan established under chapter 352B;
41.24 	(4) the legislators retirement plan established under chapter 3A;
41.25 	(5) the judges retirement plan established under chapter 490;
41.26 	(6) the general employees retirement plan of the Public Employees Retirement 
41.27 	Association established under chapter 353;
41.28 	(7) the public employees police and fire plan of the Public Employees Retirement 
41.29 	Association established under chapter 353;
41.30 	(8) the teachers retirement plan established under chapter 354;
41.31 	(9) the Duluth Teachers Retirement Fund Association established under chapter 
41.32 	354A;
41.33 	(10) the St. Paul Teachers Retirement Fund Association established under chapter 
41.34 	354A;
42.1 	(11) the Minneapolis Teachers Retirement Fund Association established under 
42.2 	chapter 354A;
42.3 	(12) (11) the Minneapolis employees retirement plan established under chapter 
42.4 	422A;
42.5 	(13)(12) the Minneapolis Firefighters Relief Association established under chapter 
42.6 	423C;
42.7 	(14) (13) the Minneapolis Police Relief Association established under chapter 
42.8 	423B; and
42.9 	(15) (14) the local government correctional service retirement plan of the Public 
42.10 	Employees Retirement Association established under chapter 353E.

42.11 	Sec. 42. Minnesota Statutes 2004, section 423A.02, subdivision 1b, is amended to read:
42.12 		Subd. 1b.Additional amortization state aid. (a) Annually, on October 1, the 
42.13 	commissioner of revenue shall allocate the additional amortization state aid transferred 
42.14 	under section   69.021, subdivision 11, to: 
42.15 	(1) all police or salaried firefighters relief associations governed by and in full 
42.16 	compliance with the requirements of section   69.77, that had an unfunded actuarial accrued 
42.17 	liability in the actuarial valuation prepared under sections   356.215 and   356.216 as of the 
42.18 	preceding December 31; 
42.19 	(2) all local police or salaried firefighter consolidation accounts governed by chapter 
42.20 	353A that are certified by the executive director of the public employees retirement 
42.21 	association as having for the current fiscal year an additional municipal contribution 
42.22 	amount under section   353A.09, subdivision 5, paragraph (b), and that have implemented 
42.23 	section   353A.083, subdivision 1, if the effective date of the consolidation preceded May 
42.24 	24, 1993, and that have implemented section   353A.083, subdivision 2, if the effective date 
42.25 	of the consolidation preceded June 1, 1995; and 
42.26 	(3) the municipalities that are required to make an additional municipal contribution 
42.27 	under section   353.665, subdivision 8, for the duration of the required additional 
42.28 	contribution. 
42.29 	(b) The commissioner shall allocate the state aid on the basis of the proportional share 
42.30 	of the relief association or consolidation account of the total unfunded actuarial accrued 
42.31 	liability of all recipient relief associations and consolidation accounts as of December 31, 
42.32 	1993, for relief associations, and as of June 30, 1994, for consolidation accounts.
42.33 	(c) Beginning October 1, 2000, and annually thereafter, the commissioner shall 
42.34 	allocate the state aid, including any state aid in excess of the limitation in subdivision 
42.35 	4, on the following basis:
43.1 	(1) 64.5 percent to the municipalities to which section   353.665, subdivision 
43.2 	8, paragraph (b), or   353A.09, subdivision 5, paragraph (b), apply for distribution in 
43.3 	accordance with paragraph (b) and subject to the limitation in subdivision 4; 
43.4 	(2) 34.2 percent to the city of Minneapolis to fund any unfunded actuarial accrued 
43.5 	liability in the actuarial valuation prepared under sections   356.215 and   356.216 as of the 
43.6 	preceding December 31 for the Minneapolis Police Relief Association or the Minneapolis 
43.7 	Fire Department Relief Association; and 
43.8 	(3)  1.3 percent to the city of Virginia to fund any unfunded actuarial accrued liability 
43.9 	in the actuarial valuation prepared under sections   356.215 and   356.216 as of the preceding 
43.10 	December 31 for the Virginia Fire Department Relief Association. 
43.11 	If there is no unfunded actuarial accrued liability in both the Minneapolis Police 
43.12 	Relief Association and the Minneapolis Fire Department Relief Association as disclosed 
43.13 	in the most recent actuarial valuations for the relief associations prepared under sections   
43.14 	356.215 and   356.216, the commissioner shall allocate that 34.2 percent of the aid as 
43.15 	follows: 49 percent to the Minneapolis Teachers Retirement Fund Association, 21 percent 
43.16 	to the St. Paul Teachers Retirement Fund Association, and 30 percent as additional 
43.17 	funding to support minimum fire state aid for volunteer firefighters relief associations. 
43.18 	If there is no unfunded actuarial accrued liability in the Virginia Fire Department Relief 
43.19 	Association as disclosed in the most recent actuarial valuation for the relief association 
43.20 	prepared under sections   356.215 and   356.216, the commissioner shall allocate that 1.3 
43.21 	percent of the aid as follows: 49 percent to the Minneapolis Teachers Retirement Fund
43.22 	Association, 21 percent to the St. Paul Teachers Retirement Fund Association, and 30 
43.23 	percent as additional funding to support minimum fire state aid for volunteer firefighters 
43.24 	relief associations. The allocation must be made by the commissioner at the same time and 
43.25 	under the same procedures as specified in subdivision 3. With respect to the Minneapolis 
43.26 	Teachers Retirement Fund Association or the St. Paul Teachers Retirement Fund 
43.27 	Association, annually, beginning on July 1, 2005, if the applicable teacher's association 
43.28 	five-year average time-weighted rate of investment return does not equal or exceed the 
43.29 	performance of a composite portfolio assumed passively managed (indexed) invested ten 
43.30 	percent in cash equivalents, 60 percent in bonds and similar debt securities, and 30 percent 
43.31 	in domestic stock calculated using the formula under section   11A.04, clause (11), the aid 
43.32 	allocation to that retirement fund under this section ceases until the five-year annual rate 
43.33 	of investment return equals or exceeds the performance of that composite portfolio. 
43.34 	(d) The amounts required under this subdivision are annually appropriated to the 
43.35 	commissioner of revenue.

44.1 	Sec. 43. MTRFA EMPLOYEE JOB PREFERENCE.
 44.2 	(a) An employee of the Minneapolis Teachers Retirement Fund Association on the 
44.3 	date of enactment has an employment preference for subsequent employment by the 
44.4 	Teachers Retirement Association, the Minnesota State Retirement System, or the Public 
44.5 	Employees Retirement Association equivalent to the preference provided to armed forces 
44.6 	veterans under state law and Department of Employee Relations practice. 
44.7 	(b) A person other than the chief administrator, employed by the former Minneapolis 
44.8 	Teachers Retirement Fund Association on July 1, 2006, and remained so employed on 
44.9 	June 30, 2007, must be retained by the Teachers Retirement Association as a member of 
44.10 	the administrative staff of the plan as of July 1, 2007, in a position compatible with the 
44.11 	person's education and experience with salary and benefits that are comparable to that of 
44.12 	the person's prior Minneapolis Teachers Retirement Fund Association employment. 
44.13 	(c) The obligation of the Teachers Retirement Association under paragraph (b) 
44.14 	expires on June 30, 2008.

44.15 	Sec. 44. MTRFA ARTICLES AND BYLAWS; REPEAL; APPLICABILITY.
 44.16 	(a) The articles of incorporation and bylaws of the Minneapolis Teachers Retirement 
44.17 	Fund Association are repealed and have application only as provided in section 9, 
44.18 	subdivision 6, and in paragraph (b).
44.19 	(b) The articles of incorporation and bylaws of the Minneapolis Teachers Retirement 
44.20 	Fund Association only apply to members of the former Minneapolis Teachers Retirement 
44.21 	Fund Association with service credit in the plan on or before June 30, 2006, and apply 
44.22 	solely for purposes of determining the retirement annuity for or benefit on behalf of a 
44.23 	member of the basic program of that retirement plan.
44.24 	(c) No annuity adjustment or increase under article 30 of the articles of incorporation 
44.25 	of the Minneapolis Teachers Retirement Fund Association is applicable or payable after 
44.26 	June 30, 2006.

44.27 	Sec. 45.  REPEALER.
 44.28 	Minnesota Statutes 2004, sections 354A.051; 354A.105; 354A.23, subdivision 1; 
44.29 	and 354A.28, are repealed effective June 30, 2006.

44.30 	Sec. 46. EFFECTIVE DATE.
 44.31 	Sections 2 to 45 are effective July 1, 2006.