<a id="pl.1.3"></a><var>1.3</var>needed to accommodate the dissolution of the Minnesota Post Retirement <br/>
<a id="pl.1.4"></a><var>1.4</var>Investment Fund; redefining the value of pension plan assets for actuarial <br/>
<a id="pl.1.5"></a><var>1.5</var>reporting purposes; revising various disability benefit provisions of the general <br/>
<a id="pl.1.6"></a><var>1.6</var>state employees retirement plan, the correctional state employees retirement plan, <br/>
<a id="pl.1.7"></a><var>1.7</var>and the State Patrol retirement plan; making various administrative provision <br/>
<a id="pl.1.8"></a><var>1.8</var>changes; establishing a voluntary statewide lump-sum volunteer firefighter <br/>
<a id="pl.1.9"></a><var>1.9</var>retirement plan administered by the Public Employees Retirement Association; <br/>
<a id="pl.1.10"></a><var>1.10</var>revising various volunteer firefighters' relief association provisions; correcting <br/>
<a id="pl.1.11"></a><var>1.11</var>2008 drafting errors related to the Minneapolis Employees Retirement Fund and <br/>
<a id="pl.1.12"></a><var>1.12</var>other drafting errors; granting special retirement benefit authority in certain <br/>
<a id="pl.1.13"></a><var>1.13</var>cases; revising the special transportation pilots retirement plan of the Minnesota <br/>
<a id="pl.1.14"></a><var>1.14</var>State Retirement System; expanding the membership of the state correctional <br/>
<a id="pl.1.15"></a><var>1.15</var>employees retirement plan; adjusting reallocation of amortization state aid; <br/>
<a id="pl.1.16"></a><var>1.16</var>extending the amortization target date for the Fairmont Police Relief Association; <br/>
<a id="pl.1.17"></a><var>1.17</var>modifying the number of board of trustees members of the Minneapolis <br/>
<a id="pl.1.18"></a><var>1.18</var>Firefighters Relief Association; permitting the Brimson Volunteer Firefighters' <br/>
<a id="pl.1.19"></a><var>1.19</var>Relief Association to implement a different board of trustees composition; <br/>
<a id="pl.1.20"></a><var>1.20</var>permitting employees of the Minneapolis Firefighters Relief Association and <br/>
<a id="pl.1.21"></a><var>1.21</var>the Minneapolis Police Relief Association to become members of the general <br/>
<a id="pl.1.22"></a><var>1.22</var>employee retirement plan of the Public Employees Retirement Association; <br/>
<a id="pl.1.23"></a><var>1.23</var>creating a two-year demonstration postretirement adjustment mechanism for <br/>
<a id="pl.1.24"></a><var>1.24</var>the St. Paul Teachers Retirement Fund Association; creating a temporary <br/>
<a id="pl.1.25"></a><var>1.25</var>postretirement option program for employees covered by the general employee <br/>
<a id="pl.1.26"></a><var>1.26</var>retirement plan of the Public Employees Retirement Association; setting a statute <br/>
<a id="pl.1.27"></a><var>1.27</var>of limitations for erroneous receipts of the general employee retirement plan <br/>
<a id="pl.1.28"></a><var>1.28</var>of the Public Employees Retirement Association; permitting the Minnesota <br/>
<a id="pl.1.29"></a><var>1.29</var>State Colleges and Universities System board to create an early separation <br/>
<a id="pl.1.30"></a><var>1.30</var>incentive program; permitting certain Minnesota State Colleges and Universities <br/>
<a id="pl.1.31"></a><var>1.31</var>System faculty members to make a second chance retirement coverage election <br/>
<a id="pl.1.32"></a><var>1.32</var>upon achieving tenure; including the Weiner Memorial Medical Center, Inc., <br/>
<a id="pl.1.33"></a><var>1.33</var>in the Public Employees Retirement Association privatization law; increasing <br/>
<a id="pl.1.34"></a><var>1.34</var>pension commission membership; extending the approval deadline date for the <br/>
<a id="pl.1.35"></a><var>1.35</var>inclusion of the Clearwater County Hospital in the Public Employees Retirement <br/>
<a id="pl.1.36"></a><var>1.36</var>Association privatization law; requiring a report; requiring a study; appropriating <br/>
<a id="pl.1.37"></a><var>1.37</var>money;amending Minnesota Statutes 2008, sections 3.85, subdivision 3; 3A.02, <br/>
<a id="pl.1.38"></a><var>1.38</var>subdivision 3, by adding a subdivision; 3A.03, by adding a subdivision; 3A.04, <br/>
<a id="pl.1.39"></a><var>1.39</var>by adding a subdivision; 3A.115; 11A.08, subdivision 1; 11A.17, subdivisions 1, <br/>
<a id="pl.2.1"></a><var>2.1</var>2; 11A.23, subdivisions 1, 2; 43A.34, subdivision 4; 43A.346, subdivisions 2, <br/>
<a id="pl.2.2"></a><var>2.2</var>6; 69.011, subdivisions 1, 2, 4; 69.021, subdivisions 7, 9; 69.031, subdivisions <br/>
<a id="pl.2.3"></a><var>2.3</var>1, 5; 69.77, subdivision 4; 69.771, subdivision 3; 69.772, subdivisions 4, 6; <br/>
<a id="pl.2.4"></a><var>2.4</var>69.773, subdivision 6; 299A.465, subdivision 1; 352.01, subdivision 2b, by <br/>
<a id="pl.2.5"></a><var>2.5</var>adding subdivisions; 352.021, by adding a subdivision; 352.04, subdivisions <br/>
<a id="pl.2.6"></a><var>2.6</var>1, 12; 352.061; 352.113, subdivision 4, by adding a subdivision; 352.115, by <br/>
<a id="pl.2.7"></a><var>2.7</var>adding a subdivision; 352.12, by adding a subdivision; 352.75, subdivisions 3, 4; <br/>
<a id="pl.2.8"></a><var>2.8</var>352.86, subdivisions 1, 1a, 2; 352.91, subdivision 3d; 352.911, subdivisions 3, <br/>
<a id="pl.2.9"></a><var>2.9</var>5; 352.93, by adding a subdivision; 352.931, by adding a subdivision; 352.95, <br/>
<a id="pl.2.10"></a><var>2.10</var>subdivisions 1, 2, 3, 4, 5, by adding a subdivision; 352B.02, subdivisions 1, 1a, <br/>
<a id="pl.2.11"></a><var>2.11</var>1c, 1d; 352B.08, by adding a subdivision; 352B.10, subdivisions 1, 2, 5, by <br/>
<a id="pl.2.12"></a><var>2.12</var>adding subdivisions; 352B.11, subdivision 2, by adding a subdivision; 352C.10; <br/>
<a id="pl.2.13"></a><var>2.13</var>352D.06, subdivision 1; 352D.065, by adding a subdivision; 352D.075, by <br/>
<a id="pl.2.14"></a><var>2.14</var>adding a subdivision; 353.01, subdivisions 2, 2a, 6, 11b, 16, 16b; 353.0161, <br/>
<a id="pl.2.15"></a><var>2.15</var>subdivision 1; 353.03, subdivision 3a; 353.06; 353.27, subdivisions 1, 2, 3, <br/>
<a id="pl.2.16"></a><var>2.16</var>7, 7b; 353.29, by adding a subdivision; 353.31, subdivision 1b, by adding a <br/>
<a id="pl.2.17"></a><var>2.17</var>subdivision; 353.33, subdivisions 1, 3b, 7, 11, 12, by adding subdivisions; <br/>
<a id="pl.2.18"></a><var>2.18</var>353.65, subdivisions 2, 3; 353.651, by adding a subdivision; 353.656, subdivision <br/>
<a id="pl.2.19"></a><var>2.19</var>5a, by adding a subdivision; 353.657, subdivision 3a, by adding a subdivision; <br/>
<a id="pl.2.20"></a><var>2.20</var>353.665, subdivision 3; 353A.02, subdivisions 14, 23; 353A.05, subdivisions <br/>
<a id="pl.2.21"></a><var>2.21</var>1, 2; 353A.08, subdivisions 1, 3, 6a; 353A.081, subdivision 2; 353A.09, <br/>
<a id="pl.2.22"></a><var>2.22</var>subdivision 1; 353A.10, subdivisions 2, 3; 353E.01, subdivisions 3, 5; 353E.04, <br/>
<a id="pl.2.23"></a><var>2.23</var>by adding a subdivision; 353E.06, by adding a subdivision; 353E.07, by adding a <br/>
<a id="pl.2.24"></a><var>2.24</var>subdivision; 353F.02, subdivision 4; 354.05, by adding a subdivision; 354.07, <br/>
<a id="pl.2.25"></a><var>2.25</var>subdivision 4; 354.33, subdivision 5; 354.35, by adding a subdivision; 354.42, <br/>
<a id="pl.2.26"></a><var>2.26</var>subdivisions 1a, 2; 354.44, subdivisions 4, 5, by adding a subdivision; 354.46, <br/>
<a id="pl.2.27"></a><var>2.27</var>by adding a subdivision; 354.47, subdivision 1; 354.48, subdivisions 4, 6, by <br/>
<a id="pl.2.28"></a><var>2.28</var>adding a subdivision; 354.49, subdivision 2; 354.52, subdivisions 2a, 4b; 354.55, <br/>
<a id="pl.2.29"></a><var>2.29</var>subdivisions 11, 13; 354.66, subdivision 6; 354.70, subdivisions 5, 6; 354A.096; <br/>
<a id="pl.2.30"></a><var>2.30</var>354A.12, subdivision 2a, by adding subdivisions; 354A.29, subdivision 3; <br/>
<a id="pl.2.31"></a><var>2.31</var>354A.36, subdivision 6; 354B.21, subdivision 2; 356.20, subdivision 2; 356.215, <br/>
<a id="pl.2.32"></a><var>2.32</var>subdivisions 1, 11; 356.219, subdivision 3; 356.32, subdivision 2; 356.351, <br/>
<a id="pl.2.33"></a><var>2.33</var>subdivision 2; 356.401, subdivisions 2, 3; 356.465, subdivision 1, by adding a <br/>
<a id="pl.2.34"></a><var>2.34</var>subdivision; 356.611, subdivisions 3, 4; 356.635, subdivisions 6, 7; 356.96, <br/>
<a id="pl.2.35"></a><var>2.35</var>subdivisions 1, 5; 422A.06, subdivision 8; 422A.08, subdivision 5; 423A.02, <br/>
<a id="pl.2.36"></a><var>2.36</var>subdivisions 1, 3; 423C.03, subdivision 1; 424A.001, subdivisions 1, 1a, 2, 3, <br/>
<a id="pl.2.37"></a><var>2.37</var>4, 5, 6, 8, 9, 10, by adding subdivisions; 424A.01; 424A.02, subdivisions 1, <br/>
<a id="pl.2.38"></a><var>2.38</var>2, 3, 3a, 7, 8, 9, 9a, 9b, 10, 12, 13; 424A.021; 424A.03; 424A.04; 424A.05, <br/>
<a id="pl.2.39"></a><var>2.39</var>subdivisions 1, 2, 3, 4; 424A.06; 424A.07; 424A.08; 424A.10, subdivisions 1, <br/>
<a id="pl.2.40"></a><var>2.40</var>2, 3, 4, 5; 424B.10, subdivision 2, by adding subdivisions; 424B.21; 490.123, <br/>
<a id="pl.2.41"></a><var>2.41</var>subdivisions 1, 3; 490.124, by adding a subdivision; Laws 1989, chapter 319, <br/>
<a id="pl.2.42"></a><var>2.42</var>article 11, section 13; Laws 2006, chapter 271, article 5, section 5, as amended; <br/>
<a id="pl.2.43"></a><var>2.43</var>Laws 2008, chapter 349, article 14, section 13; proposing coding for new law <br/>
<a id="pl.2.44"></a><var>2.44</var>in Minnesota Statutes, chapters 136F; 352B; 353; 354; 356; 420; 424A; 424B; <br/>
<a id="pl.2.45"></a><var>2.45</var>proposing coding for new law as Minnesota Statutes, chapter 353G; repealing <br/>
<a id="pl.2.46"></a><var>2.46</var>Minnesota Statutes 2008, sections 11A.041; 11A.18; 11A.181; 352.119, <br/>
<a id="pl.2.47"></a><var>2.47</var>subdivisions 2, 3, 4; 352.86, subdivision 3; 352B.01, subdivisions 1, 2, 3, 3b, <br/>
<a id="pl.2.48"></a><var>2.48</var>4, 6, 7, 9, 10, 11; 352B.26, subdivisions 1, 3; 353.271; 353A.02, subdivision <br/>
<a id="pl.2.49"></a><var>2.49</var>20; 353A.09, subdivisions 2, 3; 354.05, subdivision 26; 354.06, subdivision <br/>
<a id="pl.2.50"></a><var>2.50</var>6; 354.55, subdivision 14; 354.63; 354A.29, subdivisions 2, 4, 5; 356.2165; <br/>
<a id="pl.2.51"></a><var>2.51</var>356.41; 356.431, subdivision 2; 422A.01, subdivision 13; 422A.06, subdivision <br/>
<a id="pl.2.52"></a><var>2.52</var>4; 422A.08, subdivision 5a; 424A.001, subdivision 7; 424A.02, subdivisions 4, <br/>
<a id="pl.2.53"></a><var>2.53</var>6, 8a, 8b, 9b; 424A.09; 424B.10, subdivision 1; 490.123, subdivisions 1c, 1e.<br/>
<a id="pl.2.54"></a><var>2.54</var>BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:<br/>
<br/>
<a id="bill.1.0.0"></a>

<a id="pl.3.3"></a><var>3.3</var><b>DISSOLUTION ACCOMMODATION</b><br/>

<a id="bill.1.1.0"></a><a id="pl.3.4"></a><var>3.4</var>    Section 1. Minnesota Statutes 2008, section 3A.02, subdivision 3, is amended to read:<br/>
<a id="pl.3.5"></a><var>3.5</var>    Subd. 3. <b>Appropriation.</b>  The amounts required for payment of retirement <br/>
<a id="pl.3.6"></a><var>3.6</var>allowances provided by this section are appropriated annually to the director from the <br/>
<a id="pl.3.7"></a><var>3.7</var>participation of the legislators retirement plan in the Minnesota postretirement investment <br/>
<a id="pl.3.8"></a><var>3.8</var>fund or from the general fund as provided in section 3A.115. The retirement allowance <br/>
<a id="pl.3.9"></a><var>3.9</var>must be paid is payable monthly to the recipients entitled to those retirement allowances.<br/>
<br/>
<a id="bill.1.2.0"></a><a id="pl.3.10"></a><var>3.10</var>    Sec. 2. Minnesota Statutes 2008, section 3A.02, is amended by adding a subdivision to <br/>
<a id="pl.3.11"></a><var>3.11</var>read:<br/>
<a id="pl.3.12"></a><var>3.12</var>    Subd. 6. <b>Postretirement adjustment eligibility.</b> A retirement allowance under this <br/>
<a id="pl.3.13"></a><var>3.13</var>section is eligible for postretirement adjustments under section 356.415.<br/>
<br/>
<a id="bill.1.3.0"></a><a id="pl.3.14"></a><var>3.14</var>    Sec. 3. Minnesota Statutes 2008, section 3A.03, is amended by adding a subdivision to <br/>
<a id="pl.3.15"></a><var>3.15</var>read:<br/>
<a id="pl.3.16"></a><var>3.16</var>    Subd. 3. <b>Legislators retirement fund.</b> (a) The legislators retirement fund, a special <br/>
<a id="pl.3.17"></a><var>3.17</var>retirement fund, is created within the state treasury and must be credited with assets equal <br/>
<a id="pl.3.18"></a><var>3.18</var>to the participation of the legislators retirement plan in the Minnesota postretirement <br/>
<a id="pl.3.19"></a><var>3.19</var>investment fund as of June 30, 2009, and any investment proceeds on those assets.<br/>
<a id="pl.3.20"></a><var>3.20</var>(b) The payment of annuities under section 3A.115, paragraph (b), is appropriated <br/>
<a id="pl.3.21"></a><var>3.21</var>from the legislators retirement fund.<br/>
<br/>
<a id="bill.1.4.0"></a><a id="pl.3.22"></a><var>3.22</var>    Sec. 4. Minnesota Statutes 2008, section 3A.04, is amended by adding a subdivision to <br/>
<a id="pl.3.23"></a><var>3.23</var>read:<br/>
<a id="pl.3.24"></a><var>3.24</var>    Subd. 2a. <b>Postretirement adjustment eligibility.</b> A survivor benefit under this <br/>
<a id="pl.3.25"></a><var>3.25</var>section is eligible for postretirement adjustments under section 356.415.<br/>
<br/>
<a id="bill.1.5.0"></a><a id="pl.3.26"></a><var>3.26</var>    Sec. 5. Minnesota Statutes 2008, section 3A.115, is amended to read:<br/>
<a id="pl.3.27"></a><var>3.27</var><b>3A.115 RETIREMENT ALLOWANCE APPROPRIATION; </b><br/>
<a id="pl.3.28"></a><var>3.28</var><b>POSTRETIREMENT </b><b>ADJUSTMENT.</b><br/>
<a id="pl.3.29"></a><var>3.29</var>(a) The amount necessary to fund the retirement allowance granted under this <br/>
<a id="pl.3.30"></a><var>3.30</var>chapter to a former legislator upon retirement retiring after June 30, 2003, is appropriated <br/>
<a id="pl.3.31"></a><var>3.31</var>from the general fund to the director to pay pension obligations due to the retiree.<br/>
<a id="pl.4.1"></a><var>4.1</var>(b) The amount necessary to fund the retirement allowance granted under this <br/>
<a id="pl.4.2"></a><var>4.2</var>chapter to a former legislator retiring before July 1, 2003, must be paid from the legislators <br/>
<a id="pl.4.3"></a><var>4.3</var>retirement fund created under section 3A.03, subdivision 3, until the assets of the fund <br/>
<a id="pl.4.4"></a><var>4.4</var>are exhausted and at that time, the amount necessary to fund the retirement allowances <br/>
<a id="pl.4.5"></a><var>4.5</var>under this paragraph is appropriated from the general fund to the director to pay pension <br/>
<a id="pl.4.6"></a><var>4.6</var>obligations to the retiree.<br/>
<a id="pl.4.7"></a><var>4.7</var>(c) Retirement allowances payable to retired legislators and their survivors under <br/>
<a id="pl.4.8"></a><var>4.8</var>this chapter must be adjusted in the same manner, at the same times, and in the same <br/>
<a id="pl.4.9"></a><var>4.9</var>amounts as are benefits payable from the Minnesota postretirement investment fund to <br/>
<a id="pl.4.10"></a><var>4.10</var>retirees of a participating public pension fund as provided in sections 3A.02, subdivision <br/>
<a id="pl.4.11"></a><var>4.11</var>6, and 356.415.<br/>
<br/>
<a id="bill.1.6.0"></a><a id="pl.4.12"></a><var>4.12</var>    Sec. 6. Minnesota Statutes 2008, section 11A.08, subdivision 1, is amended to read:<br/>
<a id="pl.4.13"></a><var>4.13</var>    Subdivision 1. <b>Membership.</b> There is created an Investment Advisory Council <br/>
<a id="pl.4.14"></a><var>4.14</var>consisting of 17 members. Ten of these members shall must be experienced in general <br/>
<a id="pl.4.15"></a><var>4.15</var>investment matters. They shall be appointed by the state board The state board must <br/>
<a id="pl.4.16"></a><var>4.16</var>appoint the ten members. The other seven members shall be are: the commissioner of <br/>
<a id="pl.4.17"></a><var>4.17</var>finance; the executive director of the Minnesota State Retirement System; the executive <br/>
<a id="pl.4.18"></a><var>4.18</var>director of the Public Employees Retirement Association; the executive director of <br/>
<a id="pl.4.19"></a><var>4.19</var>the Teachers Retirement Association; a retiree currently receiving benefits from the <br/>
<a id="pl.4.20"></a><var>4.20</var>postretirement investment fund a statewide retirement plan; and two public employees <br/>
<a id="pl.4.21"></a><var>4.21</var>who are active members of funds whose assets are invested by the state board. The <br/>
<a id="pl.4.22"></a><var>4.22</var>governor must appoint the retiree and the public employees shall be appointed by the <br/>
<a id="pl.4.23"></a><var>4.23</var>governor for four-year terms.<br/>
<br/>
<a id="bill.1.7.0"></a><a id="pl.4.24"></a><var>4.24</var>    Sec. 7. Minnesota Statutes 2008, section 11A.23, subdivision 1, is amended to read:<br/>
<a id="pl.4.25"></a><var>4.25</var>    Subdivision 1. <b>Certification of assets not needed for immediate use.</b> Each <br/>
<a id="pl.4.26"></a><var>4.26</var>executive director administering a retirement fund or plan enumerated in subdivision 4 <br/>
<a id="pl.4.27"></a><var>4.27</var>shall, from time to time, certify to the state board for investment those portions of the <br/>
<a id="pl.4.28"></a><var>4.28</var>assets of the retirement fund or plan which in the judgment of the executive director are <br/>
<a id="pl.4.29"></a><var>4.29</var>not required for immediate use. Assets of the fund or plan required for participation in <br/>
<a id="pl.4.30"></a><var>4.30</var>the Minnesota postretirement adjustment fund, the combined investment fund, or the <br/>
<a id="pl.4.31"></a><var>4.31</var>supplemental investment fund shall be transferred to those funds as provided by sections <br/>
<a id="pl.4.32"></a><var>4.32</var><statute_ref>11A.01</statute_ref> to 
<statute_ref>11A.25</statute_ref>. <br/>
<br/>
<a id="bill.1.8.0"></a><a id="pl.4.33"></a><var>4.33</var>    Sec. 8. Minnesota Statutes 2008, section 11A.23, subdivision 2, is amended to read:<br/>
<a id="pl.5.1"></a><var>5.1</var>    Subd. 2. <b>Investment.</b> Retirement fund assets certified to the state board pursuant to <br/>
<a id="pl.5.2"></a><var>5.2</var>under subdivision 1 shall must be invested by the state board subject to the provisions <br/>
<a id="pl.5.3"></a><var>5.3</var>of section 
         <statute_ref>11A.24</statute_ref>. Retirement fund assets transferred to the Minnesota postretirement <br/>
<a id="pl.5.4"></a><var>5.4</var>investment fund, the combined investment fund or the supplemental investment fund shall <br/>
<a id="pl.5.5"></a><var>5.5</var>must be invested by the state board as part of those funds.  <br/>
<br/>
<a id="bill.1.9.0"></a><a id="pl.5.6"></a><var>5.6</var>    Sec. 9. Minnesota Statutes 2008, section 352.021, is amended by adding a subdivision <br/>
<a id="pl.5.7"></a><var>5.7</var>to read:<br/>
<a id="pl.5.8"></a><var>5.8</var>    Subd. 5. <b>Determining applicable law.</b> An annuity under this chapter must be <br/>
<a id="pl.5.9"></a><var>5.9</var>computed under the law in effect as of the last day for which the employee receives pay, <br/>
<a id="pl.5.10"></a><var>5.10</var>or if on medical leave, the day that the leave terminates. However, if the employee has <br/>
<a id="pl.5.11"></a><var>5.11</var>returned to covered employment following a termination, the employee must have earned <br/>
<a id="pl.5.12"></a><var>5.12</var>at least six months of allowable service following a return to employment as a state <br/>
<a id="pl.5.13"></a><var>5.13</var>employee in order to qualify for improved benefits resulting from any law change enacted <br/>
<a id="pl.5.14"></a><var>5.14</var>subsequent to that termination.<br/>
<br/>
<a id="bill.1.10.0"></a><a id="pl.5.15"></a><var>5.15</var>    Sec. 10. Minnesota Statutes 2008, section 352.04, subdivision 1, is amended to read:<br/>
<a id="pl.5.16"></a><var>5.16</var>    Subdivision 1. <b>Fund created.</b> (a) There is created a special fund to be known as the <br/>
<a id="pl.5.17"></a><var>5.17</var>general state employees retirement fund. In that fund, employee contributions, employer <br/>
<a id="pl.5.18"></a><var>5.18</var>contributions, and other amounts authorized by law must be deposited.<br/>
<a id="pl.5.19"></a><var>5.19</var>(b) The general state employees retirement plan of the Minnesota State Retirement <br/>
<a id="pl.5.20"></a><var>5.20</var>System must participate in the Minnesota postretirement investment fund. The amounts <br/>
<a id="pl.5.21"></a><var>5.21</var>provided in section 
<statute_ref>352.119</statute_ref> must be deposited in the Minnesota postretirement investment <br/>
<a id="pl.5.22"></a><var>5.22</var>fund.<br/>
<br/>
<a id="bill.1.11.0"></a><a id="pl.5.23"></a><var>5.23</var>    Sec. 11. Minnesota Statutes 2008, section 352.04, subdivision 12, is amended to read:<br/>
<a id="pl.5.24"></a><var>5.24</var>    Subd. 12. <b>Fund disbursement restricted.</b> The general state employees retirement <br/>
<a id="pl.5.25"></a><var>5.25</var>fund and the participation in the Minnesota postretirement investment fund must be <br/>
<a id="pl.5.26"></a><var>5.26</var>disbursed only for the purposes provided by law. The expenses of the system and any <br/>
<a id="pl.5.27"></a><var>5.27</var>benefits provided by law, other than benefits payable from the Minnesota postretirement <br/>
<a id="pl.5.28"></a><var>5.28</var>investment fund, must be paid from the general state employees retirement fund. The <br/>
<a id="pl.5.29"></a><var>5.29</var>retirement allowances, retirement annuities, and disability benefits, as well as refunds of <br/>
<a id="pl.5.30"></a><var>5.30</var>any sum remaining to the credit of a deceased retired employee or a disabled employee <br/>
<a id="pl.5.31"></a><var>5.31</var>must be paid only from the general state employees retirement fund after the needs <br/>
<a id="pl.5.32"></a><var>5.32</var>have been certified and the amounts withdrawn from the participation in the Minnesota <br/>
<a id="pl.5.33"></a><var>5.33</var>postretirement investment fund under section 
<statute_ref>11A.18</statute_ref>. The amounts necessary to make the <br/>
<a id="pl.6.1"></a><var>6.1</var>payments from the general state employees retirement fund and the participation in the <br/>
<a id="pl.6.2"></a><var>6.2</var>Minnesota postretirement investment fund are annually appropriated from these funds <br/>
<a id="pl.6.3"></a><var>6.3</var>that fund for those purposes.<br/>
<br/>
<a id="bill.1.12.0"></a><a id="pl.6.4"></a><var>6.4</var>    Sec. 12. Minnesota Statutes 2008, section 352.061, is amended to read:<br/>
<a id="pl.6.5"></a><var>6.5</var><b>352.061 INVESTMENT BOARD TO INVEST FUNDS.</b><br/>
<a id="pl.6.6"></a><var>6.6</var>The director shall, from time to time, certify to the State Board of Investment any <br/>
<a id="pl.6.7"></a><var>6.7</var>portions of the state employees retirement fund that in the judgment of the director are <br/>
<a id="pl.6.8"></a><var>6.8</var>not required for immediate use. Assets from the state employees retirement fund must <br/>
<a id="pl.6.9"></a><var>6.9</var>be transferred to the Minnesota postretirement investment fund as provided in section <br/>
<a id="pl.6.10"></a><var>6.10</var><statute_ref>11A.18</statute_ref>. The State Board of Investment shall invest and reinvest sums so transferred, or <br/>
<a id="pl.6.11"></a><var>6.11</var>certified, in securities that are duly authorized legal investments under section 
         <statute_ref>11A.24</statute_ref>.  <br/>
<br/>
<a id="bill.1.13.0"></a><a id="pl.6.12"></a><var>6.12</var>    Sec. 13. Minnesota Statutes 2008, section 352.113, is amended by adding a subdivision <br/>
<a id="pl.6.13"></a><var>6.13</var>to read:<br/>
<a id="pl.6.14"></a><var>6.14</var>    Subd. 13. <b>Postretirement adjustment eligibility.</b> A disability benefit under this <br/>
<a id="pl.6.15"></a><var>6.15</var>section is eligible for postretirement adjustments under section 356.415.<br/>
<br/>
<a id="bill.1.14.0"></a><a id="pl.6.16"></a><var>6.16</var>    Sec. 14. Minnesota Statutes 2008, section 352.115, is amended by adding a subdivision <br/>
<a id="pl.6.17"></a><var>6.17</var>to read:<br/>
<a id="pl.6.18"></a><var>6.18</var>    Subd. 14. <b>Postretirement adjustment eligibility.</b> A retirement annuity under <br/>
<a id="pl.6.19"></a><var>6.19</var>this section and section 352.116 is eligible for postretirement adjustments under section <br/>
<a id="pl.6.20"></a><var>6.20</var>356.415.<br/>
<br/>
<a id="bill.1.15.0"></a><a id="pl.6.21"></a><var>6.21</var>    Sec. 15. Minnesota Statutes 2008, section 352.12, is amended by adding a subdivision <br/>
<a id="pl.6.22"></a><var>6.22</var>to read:<br/>
<a id="pl.6.23"></a><var>6.23</var>    Subd. 2c. <b>Postretirement adjustment eligibility.</b> A survivor benefit under <br/>
<a id="pl.6.24"></a><var>6.24</var>subdivision 2, 2a, or 2b is eligible for postretirement adjustments under section 356.415.<br/>
<br/>
<a id="bill.1.16.0"></a><a id="pl.6.25"></a><var>6.25</var>    Sec. 16. Minnesota Statutes 2008, section 352.75, subdivision 3, is amended to read:<br/>
<a id="pl.6.26"></a><var>6.26</var>    Subd. 3. <b>Existing retired members and benefit recipients.</b> As of July 1, 1978, <br/>
<a id="pl.6.27"></a><var>6.27</var>the liability for all retirement annuities, disability benefits, survivorship annuities, and <br/>
<a id="pl.6.28"></a><var>6.28</var>survivor of deceased active employee benefits paid or payable by the former Metropolitan <br/>
<a id="pl.6.29"></a><var>6.29</var>Transit Commission-Transit Operating Division employees retirement fund is transferred <br/>
<a id="pl.6.30"></a><var>6.30</var>to the Minnesota State Retirement System, and is no longer the liability of the former <br/>
<a id="pl.6.31"></a><var>6.31</var>Metropolitan Transit Commission-Transit Operating Division employees retirement <br/>
<a id="pl.7.1"></a><var>7.1</var>fund. The required reserves for retirement annuities, disability benefits, and optional <br/>
<a id="pl.7.2"></a><var>7.2</var>joint and survivor annuities in effect on June 30, 1978, and the required reserves for the <br/>
<a id="pl.7.3"></a><var>7.3</var>increase in annuities and benefits provided under subdivision 6 must be determined using <br/>
<a id="pl.7.4"></a><var>7.4</var>a five percent interest assumption and the applicable Minnesota State Retirement System <br/>
<a id="pl.7.5"></a><var>7.5</var>mortality table and shall be transferred by the Minnesota State Retirement System to <br/>
<a id="pl.7.6"></a><var>7.6</var>the Minnesota postretirement investment fund on July 1, 1978, but shall be considered <br/>
<a id="pl.7.7"></a><var>7.7</var>transferred as of June 30, 1978. The annuity or benefit amount in effect on July 1, 1978, <br/>
<a id="pl.7.8"></a><var>7.8</var>including the increase granted under subdivision 6, must be used for adjustments made <br/>
<a id="pl.7.9"></a><var>7.9</var>under section 
<statute_ref>11A.18</statute_ref>. For persons receiving benefits as survivors of deceased former <br/>
<a id="pl.7.10"></a><var>7.10</var>retirement annuitants, the benefits must be considered as having commenced on the date <br/>
<a id="pl.7.11"></a><var>7.11</var>on which the retirement annuitant began receiving the retirement annuity.  <br/>
<br/>
<a id="bill.1.17.0"></a><a id="pl.7.12"></a><var>7.12</var>    Sec. 17. Minnesota Statutes 2008, section 352.75, subdivision 4, is amended to read:<br/>
<a id="pl.7.13"></a><var>7.13</var>    Subd. 4. <b>Existing deferred retirees.</b> Any former member of the former <br/>
<a id="pl.7.14"></a><var>7.14</var>Metropolitan Transit Commission-Transit Operating Division employees retirement <br/>
<a id="pl.7.15"></a><var>7.15</var>fund is entitled to a retirement annuity from the Minnesota State Retirement System if <br/>
<a id="pl.7.16"></a><var>7.16</var>the employee:<br/>
<a id="pl.7.17"></a><var>7.17</var>(1) is not an active employee of the Transit Operating Division of the former <br/>
<a id="pl.7.18"></a><var>7.18</var>Metropolitan Transit Commission on July 1, 1978; (2) has at least ten years of active <br/>
<a id="pl.7.19"></a><var>7.19</var>continuous service with the Transit Operating Division of the former Metropolitan <br/>
<a id="pl.7.20"></a><var>7.20</var>Transit Commission as defined by the former Metropolitan Transit Commission-Transit <br/>
<a id="pl.7.21"></a><var>7.21</var>Operating Division employees retirement plan document in effect on December 31, 1977; <br/>
<a id="pl.7.22"></a><var>7.22</var>(3) has not received a refund of contributions; (4) has not retired or begun receiving an <br/>
<a id="pl.7.23"></a><var>7.23</var>annuity or benefit from the former Metropolitan Transit Commission-Transit Operating <br/>
<a id="pl.7.24"></a><var>7.24</var>Division employees retirement fund; (5) is at least 55 years old; and (6) submits a valid <br/>
<a id="pl.7.25"></a><var>7.25</var>application for a retirement annuity to the executive director of the Minnesota State <br/>
<a id="pl.7.26"></a><var>7.26</var>Retirement System.<br/>
<a id="pl.7.27"></a><var>7.27</var>The person is entitled to a retirement annuity in an amount equal to the normal <br/>
<a id="pl.7.28"></a><var>7.28</var>old age retirement allowance calculated under the former Metropolitan Transit <br/>
<a id="pl.7.29"></a><var>7.29</var>Commission-Transit Operating Division employees retirement fund plan document in <br/>
<a id="pl.7.30"></a><var>7.30</var>effect on December 31, 1977, subject to an early retirement reduction or adjustment in <br/>
<a id="pl.7.31"></a><var>7.31</var>amount on account of retirement before the normal retirement age specified in that former <br/>
<a id="pl.7.32"></a><var>7.32</var>Metropolitan Transit Commission-Transit Operating Division employees retirement fund <br/>
<a id="pl.7.33"></a><var>7.33</var>plan document.<br/>
<a id="pl.7.34"></a><var>7.34</var>The deferred retirement annuity of any person to whom this subdivision applies <br/>
<a id="pl.7.35"></a><var>7.35</var>must be augmented. The required reserves applicable to the deferred retirement annuity, <br/>
<a id="pl.8.1"></a><var>8.1</var>determined as of the date the allowance begins to accrue using an appropriate mortality <br/>
<a id="pl.8.2"></a><var>8.2</var>table and an interest assumption of five percent, must be augmented by interest at the rate <br/>
<a id="pl.8.3"></a><var>8.3</var>of five percent per year compounded annually from January 1, 1978, to January 1, 1981, <br/>
<a id="pl.8.4"></a><var>8.4</var>and three percent per year compounded annually from January 1, 1981, to the first day <br/>
<a id="pl.8.5"></a><var>8.5</var>of the month in which the annuity begins to accrue. Upon After the commencement of <br/>
<a id="pl.8.6"></a><var>8.6</var>the retirement annuity, the required reserves for the annuity must be transferred to the <br/>
<a id="pl.8.7"></a><var>8.7</var>Minnesota postretirement investment fund in accordance with subdivision 2 and section <br/>
<a id="pl.8.8"></a><var>8.8</var><statute_ref>352.119</statute_ref> is eligible for postretirement adjustments under section 356.415. On applying <br/>
<a id="pl.8.9"></a><var>8.9</var>for a retirement annuity under this subdivision, the person is entitled to elect a joint and <br/>
<a id="pl.8.10"></a><var>8.10</var>survivor optional annuity under section 
         <statute_ref>352.116, subdivision 3</statute_ref>.  <br/>
<br/>
<a id="bill.1.18.0"></a><a id="pl.8.11"></a><var>8.11</var>    Sec. 18. Minnesota Statutes 2008, section 352.911, subdivision 3, is amended to read:<br/>
<a id="pl.8.12"></a><var>8.12</var>    Subd. 3. <b>Investment.</b> The correctional employees retirement fund shall participate <br/>
<a id="pl.8.13"></a><var>8.13</var>in the Minnesota postretirement investment fund and in that fund there shall be deposited <br/>
<a id="pl.8.14"></a><var>8.14</var>the amounts provided in section 
<statute_ref>352.119</statute_ref>. The balance of any assets of the fund shall <br/>
<a id="pl.8.15"></a><var>8.15</var>must be deposited in the Minnesota combined investment funds as provided in section <br/>
<statute_ref><a id="pl.8.16"></a><var>8.16</var>11A.14
         </statute_ref>, if applicable, or otherwise under section 
         <statute_ref>11A.23</statute_ref>.  <br/>
<br/>
<a id="bill.1.19.0"></a><a id="pl.8.17"></a><var>8.17</var>    Sec. 19. Minnesota Statutes 2008, section 352.911, subdivision 5, is amended to read:<br/>
<a id="pl.8.18"></a><var>8.18</var>    Subd. 5. <b>Fund disbursement restricted.</b> The correctional employees retirement <br/>
<a id="pl.8.19"></a><var>8.19</var>fund and its share of participation in the Minnesota postretirement investment fund shall <br/>
<a id="pl.8.20"></a><var>8.20</var>must be disbursed only for the purposes provided for in the applicable provisions in this <br/>
<a id="pl.8.21"></a><var>8.21</var>chapter. The proportional share of the expenses of the system and any benefits provided <br/>
<a id="pl.8.22"></a><var>8.22</var>in sections section
<statute_ref>352.90</statute_ref> to 
<statute_ref>352.951</statute_ref>, other than benefits payable from the Minnesota <br/>
<a id="pl.8.23"></a><var>8.23</var>postretirement investment fund, shall must be paid from the correctional employees <br/>
<a id="pl.8.24"></a><var>8.24</var>retirement fund. The retirement allowances, retirement annuities, the disability benefits, <br/>
<a id="pl.8.25"></a><var>8.25</var>the survivorship benefits, and any refunds of accumulated deductions shall must be paid <br/>
<a id="pl.8.26"></a><var>8.26</var>only from the correctional employees retirement fund after those needs have been certified <br/>
<a id="pl.8.27"></a><var>8.27</var>by the executive director and the amounts withdrawn from the share of participation in the <br/>
<a id="pl.8.28"></a><var>8.28</var>Minnesota postretirement fund under section 
<statute_ref>11A.18</statute_ref>. The amounts necessary to make the <br/>
<a id="pl.8.29"></a><var>8.29</var>payments from the correctional employees retirement fund and the participation in the <br/>
<a id="pl.8.30"></a><var>8.30</var>Minnesota postretirement investment fund are annually appropriated from those funds <br/>
<a id="pl.8.31"></a><var>8.31</var>that fund for those purposes.  <br/>
<br/>
<a id="bill.1.20.0"></a><a id="pl.8.32"></a><var>8.32</var>    Sec. 20. Minnesota Statutes 2008, section 352.93, is amended by adding a subdivision <br/>
<a id="pl.8.33"></a><var>8.33</var>to read:<br/>
<a id="pl.9.1"></a><var>9.1</var>    Subd. 7. <b>Postretirement adjustment eligibility.</b> A retirement annuity under this <br/>
<a id="pl.9.2"></a><var>9.2</var>section is eligible for postretirement adjustments under section 356.415.<br/>
<br/>
<a id="bill.1.21.0"></a><a id="pl.9.3"></a><var>9.3</var>    Sec. 21. Minnesota Statutes 2008, section 352.931, is amended by adding a subdivision <br/>
<a id="pl.9.4"></a><var>9.4</var>to read:<br/>
<a id="pl.9.5"></a><var>9.5</var>    Subd. 6. <b>Postretirement adjustment eligibility.</b> A survivor benefit under this <br/>
<a id="pl.9.6"></a><var>9.6</var>section is eligible for postretirement adjustments under section 356.415.<br/>
<br/>
<a id="bill.1.22.0"></a><a id="pl.9.7"></a><var>9.7</var>    Sec. 22. Minnesota Statutes 2008, section 352.95, is amended by adding a subdivision <br/>
<a id="pl.9.8"></a><var>9.8</var>to read:<br/>
<a id="pl.9.9"></a><var>9.9</var>    Subd. 8. <b>Postretirement adjustment eligibility.</b> A disability benefit under this <br/>
<a id="pl.9.10"></a><var>9.10</var>section is eligible for postretirement adjustments under section 356.415.<br/>
<br/>
<a id="bill.1.23.0"></a><a id="pl.9.11"></a><var>9.11</var>    Sec. 23. Minnesota Statutes 2008, section 352B.02, subdivision 1d, is amended to read:<br/>
<a id="pl.9.12"></a><var>9.12</var>    Subd. 1d. <b>Fund revenue and expenses.</b> The amounts provided for in this section <br/>
<a id="pl.9.13"></a><var>9.13</var>must be credited to the State Patrol retirement fund. All money received must be deposited <br/>
<a id="pl.9.14"></a><var>9.14</var>by the commissioner of finance in the State Patrol retirement fund. The fund must be used <br/>
<a id="pl.9.15"></a><var>9.15</var>to pay the administrative expenses of the retirement fund, and the benefits and annuities <br/>
<a id="pl.9.16"></a><var>9.16</var>provided in this chapter. Appropriate amounts shall be transferred to or withdrawn from <br/>
<a id="pl.9.17"></a><var>9.17</var>the Minnesota postretirement investment fund as provided in section 
<statute_ref>352B.26</statute_ref>.<br/>
<br/>
<a id="bill.1.24.0"></a><a id="pl.9.18"></a><var>9.18</var>    Sec. 24. Minnesota Statutes 2008, section 352B.08, is amended by adding a <br/>
<a id="pl.9.19"></a><var>9.19</var>subdivision to read:<br/>
<a id="pl.9.20"></a><var>9.20</var>    Subd. 4. <b>Postretirement adjustment eligibility.</b> A retirement annuity under this <br/>
<a id="pl.9.21"></a><var>9.21</var>section is eligible for postretirement adjustments under section 356.415.<br/>
<br/>
<a id="bill.1.25.0"></a><a id="pl.9.22"></a><var>9.22</var>    Sec. 25. Minnesota Statutes 2008, section 352B.10, is amended by adding a <br/>
<a id="pl.9.23"></a><var>9.23</var>subdivision to read:<br/>
<a id="pl.9.24"></a><var>9.24</var>    Subd. 6. <b>Postretirement adjustment eligibility.</b> A disability benefit under this <br/>
<a id="pl.9.25"></a><var>9.25</var>section is eligible for postretirement adjustments under section 356.415.<br/>
<br/>
<a id="bill.1.26.0"></a><a id="pl.9.26"></a><var>9.26</var>    Sec. 26. Minnesota Statutes 2008, section 352B.11, is amended by adding a subdivision <br/>
<a id="pl.9.27"></a><var>9.27</var>to read:<br/>
<a id="pl.9.28"></a><var>9.28</var>    Subd. 2e. <b>Postretirement adjustment eligibility.</b> A survivor benefit under <br/>
<a id="pl.9.29"></a><var>9.29</var>subdivision 2, 2b, or 2c is eligible for postretirement adjustments under section 356.415.<br/>
<br/>
<a id="bill.1.27.0"></a><a id="pl.10.1"></a><var>10.1</var>    Sec. 27. Minnesota Statutes 2008, section 352C.10, is amended to read:<br/>
<a id="pl.10.2"></a><var>10.2</var><b>352C.10 BENEFIT ADJUSTMENTS.</b><br/>
<a id="pl.10.3"></a><var>10.3</var>    Retirement allowances payable to retired constitutional officers and surviving spouse <br/>
<a id="pl.10.4"></a><var>10.4</var>benefits payable must be adjusted in the same manner, at the same times and in the same <br/>
<a id="pl.10.5"></a><var>10.5</var>amounts as are benefits payable from the Minnesota postretirement investment fund to <br/>
<a id="pl.10.6"></a><var>10.6</var>retirees of a participating public pension fund under section 356.415.<br/>
<br/>
<a id="bill.1.28.0"></a><a id="pl.10.7"></a><var>10.7</var>    Sec. 28. Minnesota Statutes 2008, section 352D.06, subdivision 1, is amended to read:<br/>
<a id="pl.10.8"></a><var>10.8</var>    Subdivision 1. <b>Annuity; reserves.</b> When a participant attains at least age 55, <br/>
<a id="pl.10.9"></a><var>10.9</var>terminates from covered service, and applies for a retirement annuity, the cash value of the <br/>
<a id="pl.10.10"></a><var>10.10</var>participant's shares shall must be transferred to the Minnesota postretirement investment <br/>
<a id="pl.10.11"></a><var>10.11</var>general state employees retirement fund and must be used to provide an annuity for the <br/>
<a id="pl.10.12"></a><var>10.12</var>retired employee based upon the participant's age when the benefit begins to accrue <br/>
<a id="pl.10.13"></a><var>10.13</var>according to the reserve basis used by the general state employees retirement plan in <br/>
<a id="pl.10.14"></a><var>10.14</var>determining pensions and reserves. The annuity under this subdivision is eligible for <br/>
<a id="pl.10.15"></a><var>10.15</var>postretirement adjustments under section 356.415.<br/>
<br/>
<a id="bill.1.29.0"></a><a id="pl.10.16"></a><var>10.16</var>    Sec. 29. Minnesota Statutes 2008, section 352D.065, is amended by adding a <br/>
<a id="pl.10.17"></a><var>10.17</var>subdivision to read:<br/>
<a id="pl.10.18"></a><var>10.18</var>    Subd. 3a. <b>Postretirement adjustment eligibility.</b> A disability benefit under this <br/>
<a id="pl.10.19"></a><var>10.19</var>section is eligible for postretirement adjustments under section 356.415.<br/>
<br/>
<a id="bill.1.30.0"></a><a id="pl.10.20"></a><var>10.20</var>    Sec. 30. Minnesota Statutes 2008, section 352D.075, is amended by adding a <br/>
<a id="pl.10.21"></a><var>10.21</var>subdivision to read:<br/>
<a id="pl.10.22"></a><var>10.22</var>    Subd. 2b. <b>Postretirement adjustment eligibility.</b> A survivor benefit under this <br/>
<a id="pl.10.23"></a><var>10.23</var>section is eligible for postretirement adjustments under section 356.415.<br/>
<br/>
<a id="bill.1.31.0"></a><a id="pl.10.24"></a><var>10.24</var>    Sec. 31. Minnesota Statutes 2008, section 353.06, is amended to read:<br/>
<a id="pl.10.25"></a><var>10.25</var><b>353.06 STATE BOARD OF INVESTMENT TO INVEST FUNDS.</b><br/>
<a id="pl.10.26"></a><var>10.26</var>The executive director shall from time to time certify to the State Board of <br/>
<a id="pl.10.27"></a><var>10.27</var>Investment for investment such portions of the retirement fund as in its judgment may not <br/>
<a id="pl.10.28"></a><var>10.28</var>be required for immediate use. Assets from the public employees retirement fund shall <br/>
<a id="pl.10.29"></a><var>10.29</var>be transferred to the Minnesota postretirement investment fund as provided in section <br/>
<a id="pl.10.30"></a><var>10.30</var><statute_ref>11A.18</statute_ref>. The State Board of Investment shall thereupon invest and reinvest the sum so <br/>
<a id="pl.10.31"></a><var>10.31</var>certified, or transferred, in such securities as are duly authorized as legal investments for <br/>
<a id="pl.10.32"></a><var>10.32</var>state employees retirement fund and shall have authority to sell, convey, and exchange <br/>
<a id="pl.11.1"></a><var>11.1</var>such securities and invest and reinvest the securities when it deems it desirable to do so <br/>
<a id="pl.11.2"></a><var>11.2</var>and shall sell securities upon request of the board of trustees when such funds are needed <br/>
<a id="pl.11.3"></a><var>11.3</var>for its purposes. All of the provisions regarding accounting procedures and restrictions <br/>
<a id="pl.11.4"></a><var>11.4</var>and conditions for the purchase and sale of securities for the state employees retirement <br/>
<a id="pl.11.5"></a><var>11.5</var>fund shall under chapter 11A must apply to the accounting, purchase and sale of securities <br/>
<a id="pl.11.6"></a><var>11.6</var>for the public employees retirement fund.  <br/>
<br/>
<a id="bill.1.32.0"></a><a id="pl.11.7"></a><var>11.7</var>    Sec. 32. Minnesota Statutes 2008, section 353.27, subdivision 1, is amended to read:<br/>
<a id="pl.11.8"></a><var>11.8</var>    Subdivision 1. <b>Income; disbursements.</b> There is a special fund known as the <br/>
<a id="pl.11.9"></a><var>11.9</var>"public employees retirement fund," the "retirement fund," or the "fund," which shall <br/>
<a id="pl.11.10"></a><var>11.10</var>must include all the assets of the association. This fund shall must be credited with all <br/>
<a id="pl.11.11"></a><var>11.11</var>contributions, all interest and all other income authorized by law. From this fund there <br/>
<a id="pl.11.12"></a><var>11.12</var>is appropriated the payments authorized by this chapter in the amounts and at such time <br/>
<a id="pl.11.13"></a><var>11.13</var>provided herein, including the expenses of administering the fund, and including the <br/>
<a id="pl.11.14"></a><var>11.14</var>proper share of the Minnesota postretirement investment fund.<br/>
<br/>
<a id="bill.1.33.0"></a><a id="pl.11.15"></a><var>11.15</var>    Sec. 33. Minnesota Statutes 2008, section 353.29, is amended by adding a subdivision <br/>
<a id="pl.11.16"></a><var>11.16</var>to read:<br/>
<a id="pl.11.17"></a><var>11.17</var>    Subd. 9. <b>Postretirement adjustment eligibility.</b> An annuity under this section or <br/>
<a id="pl.11.18"></a><var>11.18</var>section 353.30 is eligible for postretirement adjustments under section 356.415.<br/>
<br/>
<a id="bill.1.34.0"></a><a id="pl.11.19"></a><var>11.19</var>    Sec. 34. Minnesota Statutes 2008, section 353.31, subdivision 1b, is amended to read:<br/>
<a id="pl.11.20"></a><var>11.20</var>    Subd. 1b. <b>Joint and survivor option.</b> (a) Prior to payment of a surviving spouse <br/>
<a id="pl.11.21"></a><var>11.21</var>benefit under subdivision 1, the surviving spouse may elect to receive the 100 percent <br/>
<a id="pl.11.22"></a><var>11.22</var>joint and survivor optional annuity under section  
         <statute_ref>353.32, subdivision 1a</statute_ref>, rather than a <br/>
<a id="pl.11.23"></a><var>11.23</var>surviving spouse benefit. <br/>
<a id="pl.11.24"></a><var>11.24</var>(b) If there is a dependent child or children, and the 100 percent joint and survivor <br/>
<a id="pl.11.25"></a><var>11.25</var>optional annuity for the surviving spouse, when added to the dependent children's benefit <br/>
<a id="pl.11.26"></a><var>11.26</var>under subdivisions 1 and 1a, exceeds an amount equal to 70 percent of the member's <br/>
<a id="pl.11.27"></a><var>11.27</var>specified average monthly salary, the 100 percent joint and survivor annuity under section  <br/>
<statute_ref><a id="pl.11.28"></a><var>11.28</var>353.32, subdivision 1a
         </statute_ref>, must be reduced by the amount necessary so that the total family <br/>
<a id="pl.11.29"></a><var>11.29</var>benefit does not exceed the 70 percent maximum family benefit amount under subdivision <br/>
<a id="pl.11.30"></a><var>11.30</var>1a. <br/>
<a id="pl.11.31"></a><var>11.31</var>(c) The 100 percent joint and survivor optional annuity must be restored to the <br/>
<a id="pl.11.32"></a><var>11.32</var>surviving spouse, plus applicable postretirement fund adjustments under Minnesota <br/>
<a id="pl.11.33"></a><var>11.33</var>Statutes 2008, section  
         <statute_ref>356.41</statute_ref>, through January 1, 2009, and thereafter under section <br/>
<a id="pl.12.1"></a><var>12.1</var>356.415, as the dependent child or children become no longer dependent under section  <br/>
<statute_ref><a id="pl.12.2"></a><var>12.2</var>353.01, subdivision 15
         </statute_ref>. <br/>
<br/>
<a id="bill.1.35.0"></a><a id="pl.12.3"></a><var>12.3</var>    Sec. 35. Minnesota Statutes 2008, section 353.31, is amended by adding a subdivision <br/>
<a id="pl.12.4"></a><var>12.4</var>to read:<br/>
<a id="pl.12.5"></a><var>12.5</var>    Subd. 12. <b>Postretirement adjustment eligibility.</b> A survivor benefit under <br/>
<a id="pl.12.6"></a><var>12.6</var>subdivision 1 or 1b or section 353.32, subdivision 1a, 1b, or 1c is eligible for <br/>
<a id="pl.12.7"></a><var>12.7</var>postretirement adjustments under section 356.415.<br/>
<br/>
<a id="bill.1.36.0"></a><a id="pl.12.8"></a><var>12.8</var>    Sec. 36. Minnesota Statutes 2008, section 353.33, subdivision 3b, is amended to read:<br/>
<a id="pl.12.9"></a><var>12.9</var>    Subd. 3b. <b>Optional annuity election.</b> A disabled member may elect to receive the <br/>
<a id="pl.12.10"></a><var>12.10</var>normal disability benefit or an optional annuity under section 
         <statute_ref>353.30, subdivision 3</statute_ref>. The <br/>
<a id="pl.12.11"></a><var>12.11</var>election of an optional annuity must be made prior to the commencement of payment of <br/>
<a id="pl.12.12"></a><var>12.12</var>the disability benefit. The optional annuity must begin to accrue on the same date as <br/>
<a id="pl.12.13"></a><var>12.13</var>provided for the disability benefit. <br/>
<a id="pl.12.14"></a><var>12.14</var>(1) If a person who is not the spouse of a member is named as beneficiary of the <br/>
<a id="pl.12.15"></a><var>12.15</var>joint and survivor optional annuity, the person is eligible to receive the annuity only <br/>
<a id="pl.12.16"></a><var>12.16</var>if the spouse, on the disability application form prescribed by the executive director, <br/>
<a id="pl.12.17"></a><var>12.17</var>permanently waives the surviving spouse benefits under sections 
         <statute_ref>353.31, subdivision 1</statute_ref>, <br/>
<a id="pl.12.18"></a><var>12.18</var>and 
         <statute_ref>353.32, subdivision 1a</statute_ref>. If the spouse of the member refuses to permanently waive <br/>
<a id="pl.12.19"></a><var>12.19</var>the surviving spouse coverage, the selection of a person other than the spouse of the <br/>
<a id="pl.12.20"></a><var>12.20</var>member as a joint annuitant is invalid. <br/>
<a id="pl.12.21"></a><var>12.21</var>(2) If the spouse of the member permanently waives survivor coverage, the <br/>
<a id="pl.12.22"></a><var>12.22</var>dependent children, if any, continue to be eligible for survivor benefits under section <br/>
<statute_ref><a id="pl.12.23"></a><var>12.23</var>353.31, subdivision 1
         </statute_ref>, including the minimum benefit in section 
         <statute_ref>353.31, subdivision 1a</statute_ref>. <br/>
<a id="pl.12.24"></a><var>12.24</var>The designated optional annuity beneficiary may draw the monthly benefit; however, the <br/>
<a id="pl.12.25"></a><var>12.25</var>amount payable to the dependent child or children and joint annuitant must not exceed <br/>
<a id="pl.12.26"></a><var>12.26</var>the 70 percent maximum family benefit under section 
         <statute_ref>353.31, subdivision 1a</statute_ref>. If the <br/>
<a id="pl.12.27"></a><var>12.27</var>maximum is exceeded, the benefit of the joint annuitant must be reduced to the amount <br/>
<a id="pl.12.28"></a><var>12.28</var>necessary so that the total family benefit does not exceed the 70 percent maximum family <br/>
<a id="pl.12.29"></a><var>12.29</var>benefit amount. <br/>
<a id="pl.12.30"></a><var>12.30</var>(3) If the spouse is named as the beneficiary of the joint and survivor optional <br/>
<a id="pl.12.31"></a><var>12.31</var>annuity, the spouse may draw the monthly benefits; however, the amount payable to <br/>
<a id="pl.12.32"></a><var>12.32</var>the dependent child or children and the joint annuitant must not exceed the 70 percent <br/>
<a id="pl.12.33"></a><var>12.33</var>maximum family benefit under section 
         <statute_ref>353.31, subdivision 1a</statute_ref>. If the maximum is <br/>
<a id="pl.12.34"></a><var>12.34</var>exceeded, each dependent child will receive ten percent of the member's specified <br/>
<a id="pl.13.1"></a><var>13.1</var>average monthly salary, and the benefit to the joint annuitant must be reduced to the <br/>
<a id="pl.13.2"></a><var>13.2</var>amount necessary so that the total family benefit does not exceed the 70 percent maximum <br/>
<a id="pl.13.3"></a><var>13.3</var>family benefit amount. The joint and survivor optional annuity must be restored to the <br/>
<a id="pl.13.4"></a><var>13.4</var>surviving spouse, plus applicable postretirement adjustments under Minnesota Statutes <br/>
<a id="pl.13.5"></a><var>13.5</var>2008, section 
         <statute_ref>356.41</statute_ref> or section 356.415, as the dependent child or children become no <br/>
<a id="pl.13.6"></a><var>13.6</var>longer dependent under section 
         <statute_ref>353.01, subdivision 15</statute_ref>. <br/>
<br/>
<a id="bill.1.37.0"></a><a id="pl.13.7"></a><var>13.7</var>    Sec. 37. Minnesota Statutes 2008, section 353.33, subdivision 7, is amended to read:<br/>
<a id="pl.13.8"></a><var>13.8</var>    Subd. 7. <b>Partial reemployment.</b> If, following a work or non-work-related injury <br/>
<a id="pl.13.9"></a><var>13.9</var>or illness, a disabled person who remains totally and permanently disabled as defined <br/>
<a id="pl.13.10"></a><var>13.10</var>in section 
         <statute_ref>353.01, subdivision 19</statute_ref>, has income from employment that is not substantial <br/>
<a id="pl.13.11"></a><var>13.11</var>gainful activity and the rate of earnings from that employment are less than the salary <br/>
<a id="pl.13.12"></a><var>13.12</var>rate at the date of disability or the salary rate currently paid for positions similar to the <br/>
<a id="pl.13.13"></a><var>13.13</var>employment position held by the disabled person immediately before becoming disabled, <br/>
<a id="pl.13.14"></a><var>13.14</var>whichever is greater, the executive director shall continue the disability benefit in an <br/>
<a id="pl.13.15"></a><var>13.15</var>amount that, when added to the earnings and any workers' compensation benefit, does not <br/>
<a id="pl.13.16"></a><var>13.16</var>exceed the salary rate at the date of disability or the salary currently paid for positions <br/>
<a id="pl.13.17"></a><var>13.17</var>similar to the employment position held by the disabled person immediately before <br/>
<a id="pl.13.18"></a><var>13.18</var>becoming disabled, whichever is higher. The disability benefit under this subdivision may <br/>
<a id="pl.13.19"></a><var>13.19</var>not exceed the disability benefit originally allowed, plus any postretirement adjustments <br/>
<a id="pl.13.20"></a><var>13.20</var>payable after December 31, 1988, in accordance with Minnesota Statutes 2008, section <br/>
<statute_ref><a id="pl.13.21"></a><var>13.21</var>11A.18, subdivision 10
         </statute_ref>, or Minnesota Statutes 2008, section 356.41, through January 1, <br/>
<a id="pl.13.22"></a><var>13.22</var>2009, and thereafter as provided in section 356.415. No deductions for the retirement fund <br/>
<a id="pl.13.23"></a><var>13.23</var>may be taken from the salary of a disabled person who is receiving a disability benefit <br/>
<a id="pl.13.24"></a><var>13.24</var>as provided in this subdivision. <br/>
<br/>
<a id="bill.1.38.0"></a><a id="pl.13.25"></a><var>13.25</var>    Sec. 38. Minnesota Statutes 2008, section 353.33, is amended by adding a subdivision <br/>
<a id="pl.13.26"></a><var>13.26</var>to read:<br/>
<a id="pl.13.27"></a><var>13.27</var>    Subd. 13. <b>Postretirement adjustment eligibility.</b> A disability benefit under this <br/>
<a id="pl.13.28"></a><var>13.28</var>section is eligible for postretirement adjustments under section 356.415.<br/>
<br/>
<a id="bill.1.39.0"></a><a id="pl.13.29"></a><var>13.29</var>    Sec. 39. Minnesota Statutes 2008, section 353.651, is amended by adding a subdivision <br/>
<a id="pl.13.30"></a><var>13.30</var>to read:<br/>
<a id="pl.13.31"></a><var>13.31</var>    Subd. 5. <b>Postretirement adjustment eligibility.</b> An annuity under this section is <br/>
<a id="pl.13.32"></a><var>13.32</var>eligible for postretirement adjustments under section 356.415.<br/>
<br/>
<a id="bill.1.40.0"></a><a id="pl.14.1"></a><var>14.1</var>    Sec. 40. Minnesota Statutes 2008, section 353.656, subdivision 5a, is amended to read:<br/>
<a id="pl.14.2"></a><var>14.2</var>    Subd. 5a. <b>Cessation of disability benefit.</b> (a) The association shall cease the <br/>
<a id="pl.14.3"></a><var>14.3</var>payment of any disability benefit the first of the month following the reinstatement of a <br/>
<a id="pl.14.4"></a><var>14.4</var>member to full time or less than full-time service in a position covered by the police <br/>
<a id="pl.14.5"></a><var>14.5</var>and fire fund.<br/>
<a id="pl.14.6"></a><var>14.6</var>    (b) A disability benefit paid to a disabled member of the police and fire plan, that <br/>
<a id="pl.14.7"></a><var>14.7</var>was granted under laws in effect after June 30, 2007, terminates at the end of the month in <br/>
<a id="pl.14.8"></a><var>14.8</var>which the member:<br/>
<a id="pl.14.9"></a><var>14.9</var>    (1) reaches normal retirement age; <br/>
<a id="pl.14.10"></a><var>14.10</var>    (2) if the disability benefit is payable for a 60-month period as determined under <br/>
<a id="pl.14.11"></a><var>14.11</var>subdivisions 1 and 3, as applicable, the first of the month following the expiration of <br/>
<a id="pl.14.12"></a><var>14.12</var>the 60-month period; or<br/>
<a id="pl.14.13"></a><var>14.13</var>    (3) if the disabled member so chooses, the end of the month in which the member <br/>
<a id="pl.14.14"></a><var>14.14</var>has elected to convert to an early retirement annuity under section 
         <statute_ref>353.651, subdivision 4</statute_ref>.<br/>
<a id="pl.14.15"></a><var>14.15</var>    (c) If the police and fire plan member continues to be disabled when the disability <br/>
<a id="pl.14.16"></a><var>14.16</var>benefit terminates under this subdivision, the member is deemed to be retired. The <br/>
<a id="pl.14.17"></a><var>14.17</var>individual is entitled to receive a normal retirement annuity or an early retirement annuity <br/>
<a id="pl.14.18"></a><var>14.18</var>under section 
         <statute_ref>353.651</statute_ref>, whichever is applicable, as further specified in paragraph (d) <br/>
<a id="pl.14.19"></a><var>14.19</var>or (e). If the individual did not previously elect an optional annuity under subdivision <br/>
<a id="pl.14.20"></a><var>14.20</var>1a, paragraph (a), the individual may elect an optional annuity under subdivision 1a, <br/>
<a id="pl.14.21"></a><var>14.21</var>paragraph (b).<br/>
<a id="pl.14.22"></a><var>14.22</var>    (d) A member of the police and fire plan who is receiving a disability benefit under <br/>
<a id="pl.14.23"></a><var>14.23</var>this section may, upon application, elect to receive an early retirement annuity under <br/>
<a id="pl.14.24"></a><var>14.24</var>section 
         <statute_ref>353.651, subdivision 4</statute_ref>, at any time after attaining age 50, but must convert to a <br/>
<a id="pl.14.25"></a><var>14.25</var>retirement annuity no later than the end of the month in which the disabled member attains <br/>
<a id="pl.14.26"></a><var>14.26</var>normal retirement age. An early retirement annuity elected under this subdivision must be <br/>
<a id="pl.14.27"></a><var>14.27</var>calculated on the disabled member's accrued years of service and average salary as defined <br/>
<a id="pl.14.28"></a><var>14.28</var>in section 
         <statute_ref>353.01, subdivision 17a</statute_ref>, and when elected, the member is deemed to be retired.<br/>
<a id="pl.14.29"></a><var>14.29</var>    (e) When an individual's benefit is recalculated as a retirement annuity under this <br/>
<a id="pl.14.30"></a><var>14.30</var>section, the annuity must be based on clause (1) or clause (2), whichever provides the <br/>
<a id="pl.14.31"></a><var>14.31</var>greater amount:<br/>
<a id="pl.14.32"></a><var>14.32</var>    (1) the benefit amount at the time of reclassification, including all prior adjustments <br/>
<a id="pl.14.33"></a><var>14.33</var>provided under Minnesota Statutes 2008, section 
         <statute_ref>11A.18</statute_ref>, through January 1, 2009, and <br/>
<a id="pl.14.34"></a><var>14.34</var>thereafter as provided in section 356.415; or<br/>
<a id="pl.14.35"></a><var>14.35</var>    (2) a benefit amount computed on the member's actual years of accrued allowable <br/>
<a id="pl.14.36"></a><var>14.36</var>service credit and the law in effect at the time the disability benefit first accrued, plus any <br/>
<a id="pl.15.1"></a><var>15.1</var>increases that would have applied since that date under section 
         <statute_ref>Minnesota Statutes 2008, <br/>
<a id="pl.15.2"></a><var>15.2</var>11A.18
         </statute_ref>, through January 1, 2009, and thereafter as provided in section 356.415.<br/>
<br/>
<a id="bill.1.41.0"></a><a id="pl.15.3"></a><var>15.3</var>    Sec. 41. Minnesota Statutes 2008, section 353.656, is amended by adding a subdivision <br/>
<a id="pl.15.4"></a><var>15.4</var>to read:<br/>
<a id="pl.15.5"></a><var>15.5</var>    Subd. 14. <b>Postretirement adjustment eligibility.</b> A disability benefit under this <br/>
<a id="pl.15.6"></a><var>15.6</var>section is eligible for postretirement adjustments under section 356.415.<br/>
<br/>
<a id="bill.1.42.0"></a><a id="pl.15.7"></a><var>15.7</var>    Sec. 42. Minnesota Statutes 2008, section 353.657, subdivision 3a, is amended to read:<br/>
<a id="pl.15.8"></a><var>15.8</var>    Subd. 3a. <b>Maximum and minimum family benefits.</b> (a) The maximum monthly <br/>
<a id="pl.15.9"></a><var>15.9</var>benefit per family must not exceed the following percentages of the member's average <br/>
<a id="pl.15.10"></a><var>15.10</var>monthly salary as specified in subdivision 3:<br/>
<a id="pl.15.11"></a><var>15.11</var>    (1) 80 percent, if the member's death was a line of duty death; or<br/>
<a id="pl.15.12"></a><var>15.12</var>    (2) 70 percent, if the member's death was not a line of duty death or occurred while <br/>
<a id="pl.15.13"></a><var>15.13</var>the member was receiving a disability benefit that accrued before July 1, 2007.<br/>
<a id="pl.15.14"></a><var>15.14</var>    (b) The minimum monthly benefit per family, including the joint and survivor <br/>
<a id="pl.15.15"></a><var>15.15</var>optional annuity under subdivision 2a, and section 
         <statute_ref>353.656, subdivision 1a</statute_ref>, must not be <br/>
<a id="pl.15.16"></a><var>15.16</var>less than the following percentage of the member's average monthly salary as specified in <br/>
<a id="pl.15.17"></a><var>15.17</var>subdivision 3:<br/>
<a id="pl.15.18"></a><var>15.18</var>    (1) 60 percent, if the death was a line of duty death; or <br/>
<a id="pl.15.19"></a><var>15.19</var>    (2) 50 percent, if the death was not a line of duty death or occurred while the member <br/>
<a id="pl.15.20"></a><var>15.20</var>was receiving a disability benefit that accrued before July 1, 2007.<br/>
<a id="pl.15.21"></a><var>15.21</var>    (c) If the maximum under paragraph (a) is exceeded, the monthly benefit of the <br/>
<a id="pl.15.22"></a><var>15.22</var>joint annuitant must be reduced to the amount necessary so that the total family benefit <br/>
<a id="pl.15.23"></a><var>15.23</var>does not exceed the applicable maximum. The joint and survivor optional annuity must <br/>
<a id="pl.15.24"></a><var>15.24</var>be restored, plus applicable postretirement adjustments under Minnesota Statutes 2008, <br/>
<a id="pl.15.25"></a><var>15.25</var>section 
         <statute_ref>356.41</statute_ref> or section 356.415, as the dependent child or children become no longer <br/>
<a id="pl.15.26"></a><var>15.26</var>dependent under section 
         <statute_ref>353.01, subdivision 15</statute_ref>.<br/>
<br/>
<a id="bill.1.43.0"></a><a id="pl.15.27"></a><var>15.27</var>    Sec. 43. Minnesota Statutes 2008, section 353.657, is amended by adding a subdivision <br/>
<a id="pl.15.28"></a><var>15.28</var>to read:<br/>
<a id="pl.15.29"></a><var>15.29</var>    Subd. 5. <b>Postretirement adjustment eligibility.</b> A survivor benefit under this <br/>
<a id="pl.15.30"></a><var>15.30</var>section is eligible for postretirement adjustments under section 356.415.<br/>
<br/>
<a id="bill.1.44.0"></a><a id="pl.15.31"></a><var>15.31</var>    Sec. 44. Minnesota Statutes 2008, section 353.665, subdivision 3, is amended to read:<br/>
<a id="pl.16.1"></a><var>16.1</var>    Subd. 3. <b>Transfer of assets.</b> Unless the municipality has elected to retain the <br/>
<a id="pl.16.2"></a><var>16.2</var>consolidation account under subdivision 1, paragraph (b), the assets of the former local <br/>
<a id="pl.16.3"></a><var>16.3</var>police or fire consolidation account must be transferred and upon transfer, the actuarial <br/>
<a id="pl.16.4"></a><var>16.4</var>value of the assets of a former local police or fire consolidation account less an amount <br/>
<a id="pl.16.5"></a><var>16.5</var>equal to the residual assets as determined under subdivision 7, paragraph (f), are the <br/>
<a id="pl.16.6"></a><var>16.6</var>assets of the public employees police and fire fund as of July 1, 1999. The participation <br/>
<a id="pl.16.7"></a><var>16.7</var>of a consolidation account in the Minnesota postretirement investment fund becomes <br/>
<a id="pl.16.8"></a><var>16.8</var>part of the participation of the public employees police and fire fund in the Minnesota <br/>
<a id="pl.16.9"></a><var>16.9</var>postretirement investment fund. The remaining assets, excluding the amounts for <br/>
<a id="pl.16.10"></a><var>16.10</var>distribution under subdivision 7, paragraph (f), become an asset of the public employees <br/>
<a id="pl.16.11"></a><var>16.11</var>police and fire fund. The public employees police and fire fund also must be credited as an <br/>
<a id="pl.16.12"></a><var>16.12</var>asset with the amount of receivable assets under subdivision 7, paragraph (e).<br/>
<br/>
<a id="bill.1.45.0"></a><a id="pl.16.13"></a><var>16.13</var>    Sec. 45. Minnesota Statutes 2008, section 353A.02, subdivision 14, is amended to read:<br/>
<a id="pl.16.14"></a><var>16.14</var>    Subd. 14. <b>Ineligible investments.</b> "Ineligible investments" means any investment <br/>
<a id="pl.16.15"></a><var>16.15</var>security or other asset held by the relief association at or after the initiation of the <br/>
<a id="pl.16.16"></a><var>16.16</var>consolidation procedure which does not comply with the applicable requirements or <br/>
<a id="pl.16.17"></a><var>16.17</var>limitations of sections 
         <statute_ref>11A.09</statute_ref>, 
         <statute_ref>11A.18</statute_ref>,
<statute_ref>11A.23</statute_ref>, and 
         <statute_ref>11A.24</statute_ref>. <br/>
<br/>
<a id="bill.1.46.0"></a><a id="pl.16.18"></a><var>16.18</var>    Sec. 46. Minnesota Statutes 2008, section 353A.02, subdivision 23, is amended to read:<br/>
<a id="pl.16.19"></a><var>16.19</var>    Subd. 23. <b>Postretirement adjustment.</b> "Postretirement adjustment" means any <br/>
<a id="pl.16.20"></a><var>16.20</var>periodic or regular procedure for modifying the amount of a retirement annuity, service <br/>
<a id="pl.16.21"></a><var>16.21</var>pension, disability benefit, or survivor benefit after the start of that annuity, pension, <br/>
<a id="pl.16.22"></a><var>16.22</var>or benefit, including but not limited to modifications of amounts from the Minnesota <br/>
<a id="pl.16.23"></a><var>16.23</var>postretirement investment fund under section 
         <statute_ref>11A.18, subdivision 9</statute_ref> 356.415, or any <br/>
<a id="pl.16.24"></a><var>16.24</var>benefit escalation or benefit amount modification based on changes in the salaries payable <br/>
<a id="pl.16.25"></a><var>16.25</var>to active police officers or salaried firefighters or changes in a cost-of-living index as <br/>
<a id="pl.16.26"></a><var>16.26</var>provided for in the existing relief association benefit plan. <br/>
<br/>
<a id="bill.1.47.0"></a><a id="pl.16.27"></a><var>16.27</var>    Sec. 47. Minnesota Statutes 2008, section 353A.05, subdivision 1, is amended to read:<br/>
<a id="pl.16.28"></a><var>16.28</var>    Subdivision 1. <b>Commission actions.</b> (a) Upon initiation of consolidation as <br/>
<a id="pl.16.29"></a><var>16.29</var>provided in section 
         <statute_ref>353A.04</statute_ref>, the executive director of the commission shall direct the <br/>
<a id="pl.16.30"></a><var>16.30</var>actuary retained under section 
         <statute_ref>356.214</statute_ref> to undertake the preparation of the actuarial <br/>
<a id="pl.16.31"></a><var>16.31</var>calculations necessary to complete the consolidation. <br/>
<a id="pl.16.32"></a><var>16.32</var>(b) These actuarial calculations shall include for each active member, each deferred <br/>
<a id="pl.16.33"></a><var>16.33</var>former member, each retired member, and each current beneficiary the computation of the <br/>
<a id="pl.17.1"></a><var>17.1</var>present value of future benefits, the future normal costs, if any, and the actuarial accrued <br/>
<a id="pl.17.2"></a><var>17.2</var>liability on the basis of the existing relief association benefit plan and on the basis of the <br/>
<a id="pl.17.3"></a><var>17.3</var>public employees police and fire fund benefit plan. These actuarial calculations shall also <br/>
<a id="pl.17.4"></a><var>17.4</var>include for the total active, deferred, retired, and benefit recipient membership the sum <br/>
<a id="pl.17.5"></a><var>17.5</var>of the present value of future benefits, the future normal costs, if any, and the actuarial <br/>
<a id="pl.17.6"></a><var>17.6</var>accrued liability on the basis of the existing relief association benefit plan, on the basis of <br/>
<a id="pl.17.7"></a><var>17.7</var>the public employees police and fire fund benefit plan, and on the basis of the benefit plan <br/>
<a id="pl.17.8"></a><var>17.8</var>which produced the largest present value of future benefits for each person. The actuarial <br/>
<a id="pl.17.9"></a><var>17.9</var>calculations shall be prepared using the entry age actuarial cost method for all components <br/>
<a id="pl.17.10"></a><var>17.10</var>of the benefit plan and using the actuarial assumptions applicable to the fund for the <br/>
<a id="pl.17.11"></a><var>17.11</var>most recent actuarial valuation prepared under section 
         <statute_ref>356.215</statute_ref>, except that the actuarial <br/>
<a id="pl.17.12"></a><var>17.12</var>calculations on the basis of the existing relief association benefit plan shall be prepared <br/>
<a id="pl.17.13"></a><var>17.13</var>using an interest rate actuarial assumption during the postretirement period which is in <br/>
<a id="pl.17.14"></a><var>17.14</var>the same amount as the interest rate actuarial assumption applicable to the preretirement <br/>
<a id="pl.17.15"></a><var>17.15</var>period. The actuarial calculations shall include the computation of the present value of the <br/>
<a id="pl.17.16"></a><var>17.16</var>initial postretirement adjustment anticipated by the executive director of the state board as <br/>
<a id="pl.17.17"></a><var>17.17</var>payable after the effective date of the consolidation from the Minnesota postretirement <br/>
<a id="pl.17.18"></a><var>17.18</var>investment fund under section 
         <statute_ref>11A.18</statute_ref> 356.415. <br/>
<a id="pl.17.19"></a><var>17.19</var>(c) The chief administrative officer of the relief association shall, upon request, <br/>
<a id="pl.17.20"></a><var>17.20</var>provide in a timely manner to the executive director of the commission and to the actuary <br/>
<a id="pl.17.21"></a><var>17.21</var>retained under section 
         <statute_ref>356.214</statute_ref> the most current available information or documents, <br/>
<a id="pl.17.22"></a><var>17.22</var>whichever applies, regarding the demographics of the active, deferred, retired, and <br/>
<a id="pl.17.23"></a><var>17.23</var>benefit recipient membership of the relief association, the financial condition of the relief <br/>
<a id="pl.17.24"></a><var>17.24</var>association, and the existing benefit plan of the relief association.<br/>
<a id="pl.17.25"></a><var>17.25</var>(d) Upon completion of the actuarial calculations required by this subdivision, the <br/>
<a id="pl.17.26"></a><var>17.26</var>actuary retained under section 
         <statute_ref>356.214</statute_ref> shall issue a report in the form of an appropriate <br/>
<a id="pl.17.27"></a><var>17.27</var>summary of the actuarial calculations and shall provide a copy of that report to the <br/>
<a id="pl.17.28"></a><var>17.28</var>executive director of the commission, the executive director of the Public Employees <br/>
<a id="pl.17.29"></a><var>17.29</var>Retirement Association, the chief administrative officer of the relief association, the chief <br/>
<a id="pl.17.30"></a><var>17.30</var>administrative officer of the municipality in which the relief association is located, and <br/>
<a id="pl.17.31"></a><var>17.31</var>the state auditor.<br/>
<br/>
<a id="bill.1.48.0"></a><a id="pl.17.32"></a><var>17.32</var>    Sec. 48. Minnesota Statutes 2008, section 353A.05, subdivision 2, is amended to read:<br/>
<a id="pl.17.33"></a><var>17.33</var>    Subd. 2. <b>State board actions.</b> (a) Upon approval of consolidation by the <br/>
<a id="pl.17.34"></a><var>17.34</var>membership as provided in section 
         <statute_ref>353A.04</statute_ref>, the executive director of the state board <br/>
<a id="pl.17.35"></a><var>17.35</var>shall review the existing investment portfolio of the relief association for compliance <br/>
<a id="pl.18.1"></a><var>18.1</var>with the requirements and limitations set forth in sections 
         <statute_ref>11A.09</statute_ref>, 
         <statute_ref>11A.14</statute_ref>, 
         <statute_ref>11A.18</statute_ref>, <br/>
<statute_ref><a id="pl.18.2"></a><var>18.2</var>11A.23
         </statute_ref>, and 
         <statute_ref>11A.24</statute_ref> and for appropriateness for retention in the light of the established <br/>
<a id="pl.18.3"></a><var>18.3</var>investment objectives of the state board. The executive director of the state board, using <br/>
<a id="pl.18.4"></a><var>18.4</var>any reporting service retained by the state board, shall determine the approximate market <br/>
<a id="pl.18.5"></a><var>18.5</var>value of the existing assets of the relief association upon the effective date of consolidation <br/>
<a id="pl.18.6"></a><var>18.6</var>and the transfer of assets from the relief association to the individual relief association <br/>
<a id="pl.18.7"></a><var>18.7</var>consolidation accounts at market value. <br/>
<a id="pl.18.8"></a><var>18.8</var>(b) The state board may require that the relief association liquidate any investment <br/>
<a id="pl.18.9"></a><var>18.9</var>security or other item of value which is determined to be ineligible or inappropriate for <br/>
<a id="pl.18.10"></a><var>18.10</var>retention by the state board. The liquidation shall occur before the effective date of <br/>
<a id="pl.18.11"></a><var>18.11</var>consolidation and transfer of assets.<br/>
<a id="pl.18.12"></a><var>18.12</var>(c) If requested to do so by the chief administrative officer of the relief association <br/>
<a id="pl.18.13"></a><var>18.13</var>or of the municipality, the state board shall provide advice on the means and procedures <br/>
<a id="pl.18.14"></a><var>18.14</var>available to liquidate investment securities and other assets determined to be ineligible or <br/>
<a id="pl.18.15"></a><var>18.15</var>inappropriate.<br/>
<br/>
<a id="bill.1.49.0"></a><a id="pl.18.16"></a><var>18.16</var>    Sec. 49. Minnesota Statutes 2008, section 353A.08, subdivision 1, is amended to read:<br/>
<a id="pl.18.17"></a><var>18.17</var>    Subdivision 1. <b>Election of coverage by current retirees.</b> (a) A person who is <br/>
<a id="pl.18.18"></a><var>18.18</var>receiving a service pension, disability benefit, or survivor benefit is eligible to elect benefit <br/>
<a id="pl.18.19"></a><var>18.19</var>coverage provided under the relevant provisions of the public employees police and fire <br/>
<a id="pl.18.20"></a><var>18.20</var>fund benefit plan or to retain benefit coverage provided under the relief association benefit <br/>
<a id="pl.18.21"></a><var>18.21</var>plan in effect on the effective date of the consolidation. The relevant provisions of the <br/>
<a id="pl.18.22"></a><var>18.22</var>public employees police and fire fund benefit plan for the person electing that benefit <br/>
<a id="pl.18.23"></a><var>18.23</var>coverage are limited to participation in the Minnesota postretirement investment fund for <br/>
<a id="pl.18.24"></a><var>18.24</var>any future postretirement adjustments under section 356.415 based on the amount of <br/>
<a id="pl.18.25"></a><var>18.25</var>the benefit or pension payable on December 31, if December 31 is the effective date of <br/>
<a id="pl.18.26"></a><var>18.26</var>consolidation, or on the December 1 following the effective date of the consolidation, if <br/>
<a id="pl.18.27"></a><var>18.27</var>other than December 31. The survivor benefit payable on behalf of any service pension <br/>
<a id="pl.18.28"></a><var>18.28</var>or disability benefit recipient who elects benefit coverage under the public employees <br/>
<a id="pl.18.29"></a><var>18.29</var>police and fire fund benefit plan must be calculated under the relief association benefit <br/>
<a id="pl.18.30"></a><var>18.30</var>plan and is subject to participation in the Minnesota postretirement investment fund for <br/>
<a id="pl.18.31"></a><var>18.31</var>any future postretirement adjustments under section 356.415 based on the amount of the <br/>
<a id="pl.18.32"></a><var>18.32</var>survivor benefit payable.<br/>
<a id="pl.18.33"></a><var>18.33</var>(b) A survivor benefit calculated under the relief association benefit plan which is first <br/>
<a id="pl.18.34"></a><var>18.34</var>payable after June 30, 1997, to the surviving spouse of a retired member of a consolidation <br/>
<a id="pl.18.35"></a><var>18.35</var>account who, before July 1, 1997, chose to participate in the Minnesota postretirement <br/>
<a id="pl.19.1"></a><var>19.1</var>investment fund adjustments as provided under this subdivision section 356.415 must be <br/>
<a id="pl.19.2"></a><var>19.2</var>increased on the effective date of the survivor benefit on an actuarial equivalent basis to <br/>
<a id="pl.19.3"></a><var>19.3</var>reflect the change in the postretirement interest rate actuarial assumption under section <br/>
<statute_ref><a id="pl.19.4"></a><var>19.4</var>356.215, subdivision 8
         </statute_ref>, from five percent to six percent under a calculation procedure and <br/>
<a id="pl.19.5"></a><var>19.5</var>tables adopted by the board and approved by the actuary retained under section 
         <statute_ref>356.214</statute_ref>. <br/>
<a id="pl.19.6"></a><var>19.6</var>(c) By electing the public employees police and fire fund benefit plan, a current <br/>
<a id="pl.19.7"></a><var>19.7</var>service pension or disability benefit recipient who, as of the first January 1 occurring after <br/>
<a id="pl.19.8"></a><var>19.8</var>the effective date of consolidation, has been receiving the pension or benefit for at least <br/>
<a id="pl.19.9"></a><var>19.9</var>seven months, or any survivor benefit recipient who, as of the first January 1 occurring <br/>
<a id="pl.19.10"></a><var>19.10</var>after the effective date of consolidation, has been receiving the benefit on the person's own <br/>
<a id="pl.19.11"></a><var>19.11</var>behalf or in combination with a prior applicable service pension or disability benefit for at <br/>
<a id="pl.19.12"></a><var>19.12</var>least seven months is eligible to receive a partial adjustment payable from the Minnesota <br/>
<a id="pl.19.13"></a><var>19.13</var>postretirement investment fund under section 
         <statute_ref>11A.18, subdivision 9</statute_ref> 356.415. <br/>
<a id="pl.19.14"></a><var>19.14</var>(d) The election by any pension or benefit recipient must be made on or before <br/>
<a id="pl.19.15"></a><var>19.15</var>the deadline established by the board of the Public Employees Retirement Association <br/>
<a id="pl.19.16"></a><var>19.16</var>in a manner that recognizes the number of persons eligible to make the election and the <br/>
<a id="pl.19.17"></a><var>19.17</var>anticipated time required to conduct any required benefit counseling.<br/>
<br/>
<a id="bill.1.50.0"></a><a id="pl.19.18"></a><var>19.18</var>    Sec. 50. Minnesota Statutes 2008, section 353A.08, subdivision 3, is amended to read:<br/>
<a id="pl.19.19"></a><var>19.19</var>    Subd. 3. <b>Election of coverage by active members.</b> (a) A person who is an active <br/>
<a id="pl.19.20"></a><var>19.20</var>member of a police or fire relief association, other than a volunteer firefighter, has the <br/>
<a id="pl.19.21"></a><var>19.21</var>option to elect benefit coverage under the relevant provisions of the public employees <br/>
<a id="pl.19.22"></a><var>19.22</var>police and fire fund or to retain benefit coverage provided by the relief association benefit <br/>
<a id="pl.19.23"></a><var>19.23</var>plan in effect on the effective date of consolidation. The relevant provisions of the public <br/>
<a id="pl.19.24"></a><var>19.24</var>employee police and fire fund benefit plan for the person electing that benefit coverage <br/>
<a id="pl.19.25"></a><var>19.25</var>are the relevant provisions of the public employee police and fire fund benefit plan <br/>
<a id="pl.19.26"></a><var>19.26</var>applicable to retirement annuities, disability benefits, and survivor benefits, including <br/>
<a id="pl.19.27"></a><var>19.27</var>participation in the Minnesota postretirement investment fund adjustments under section <br/>
<a id="pl.19.28"></a><var>19.28</var>356.415, but excluding any provisions governing the purchase of credit for prior service <br/>
<a id="pl.19.29"></a><var>19.29</var>or making payments in lieu of member contribution deductions applicable to any period <br/>
<a id="pl.19.30"></a><var>19.30</var>which occurred before the effective date of consolidation.<br/>
<a id="pl.19.31"></a><var>19.31</var>(b) An active member is eligible to make an election at one of the following times:<br/>
<a id="pl.19.32"></a><var>19.32</var>(1) within six months of the effective date of consolidation;<br/>
<a id="pl.19.33"></a><var>19.33</var>(2) between the date on which the active member attains the age of 49 years and six <br/>
<a id="pl.19.34"></a><var>19.34</var>months and the date on which the active member attains the age of 50 years; or<br/>
<a id="pl.20.1"></a><var>20.1</var>(3) on the date on which the active member terminates active employment for <br/>
<a id="pl.20.2"></a><var>20.2</var>purposes of receiving a service pension or disability benefits, or within 90 days of the <br/>
<a id="pl.20.3"></a><var>20.3</var>date the member terminates active employment and defers receipt of a service pension, <br/>
<a id="pl.20.4"></a><var>20.4</var>whichever applies.<br/>
<br/>
<a id="bill.1.51.0"></a><a id="pl.20.5"></a><var>20.5</var>    Sec. 51. Minnesota Statutes 2008, section 353A.081, subdivision 2, is amended to read:<br/>
<a id="pl.20.6"></a><var>20.6</var>    Subd. 2. <b>Election of coverage.</b> (a) Individuals eligible under subdivision 1 may <br/>
<a id="pl.20.7"></a><var>20.7</var>elect, on a form prescribed by the executive director of the Public Employees Retirement <br/>
<a id="pl.20.8"></a><var>20.8</var>Association, to have survivor benefits calculated under the relevant provisions of the <br/>
<a id="pl.20.9"></a><var>20.9</var>public employees police and fire fund benefit plan or to have survivor benefits calculated <br/>
<a id="pl.20.10"></a><var>20.10</var>under the relief association benefit plan. The relevant provisions of the public employee <br/>
<a id="pl.20.11"></a><var>20.11</var>police and fire fund benefit plan for the person electing that benefit coverage are the <br/>
<a id="pl.20.12"></a><var>20.12</var>relevant provisions of the public employee police and fire fund benefit plan applicable <br/>
<a id="pl.20.13"></a><var>20.13</var>to survivor benefits, including participation in the Minnesota postretirement investment <br/>
<a id="pl.20.14"></a><var>20.14</var>fund adjustments under section 356.415.<br/>
<a id="pl.20.15"></a><var>20.15</var>(b) If the election results in an increased benefit amount to the surviving spouse <br/>
<a id="pl.20.16"></a><var>20.16</var>eligible under subdivision 1, or to eligible children if there is no surviving spouse, the <br/>
<a id="pl.20.17"></a><var>20.17</var>increased benefit accrues as of the date on which the survivor benefits payable to the <br/>
<a id="pl.20.18"></a><var>20.18</var>survivors from the consolidation account were first paid. The back payment of any <br/>
<a id="pl.20.19"></a><var>20.19</var>increase in prior benefit amounts, plus any postretirement adjustments payable under <br/>
<a id="pl.20.20"></a><var>20.20</var>section 
         <statute_ref>356.41</statute_ref> 356.415, or any increase payable under the local relief association bylaws <br/>
<a id="pl.20.21"></a><var>20.21</var>is payable as soon as practicable after the effective date of the election. <br/>
<br/>
<a id="bill.1.52.0"></a><a id="pl.20.22"></a><var>20.22</var>    Sec. 52. Minnesota Statutes 2008, section 353A.09, subdivision 1, is amended to read:<br/>
<a id="pl.20.23"></a><var>20.23</var>    Subdivision 1. <b>Establishment of consolidation accounts.</b> (a) The board of trustees <br/>
<a id="pl.20.24"></a><var>20.24</var>of the Public Employees Retirement Association shall establish a separate consolidation <br/>
<a id="pl.20.25"></a><var>20.25</var>account for each local relief association of a municipality that consolidates with the Public <br/>
<a id="pl.20.26"></a><var>20.26</var>Employees Retirement Association. The association shall credit to the consolidation <br/>
<a id="pl.20.27"></a><var>20.27</var>account the assets of the individual consolidating local relief association upon transfer, <br/>
<a id="pl.20.28"></a><var>20.28</var>member contributions received after consolidation under subdivision 4, municipal <br/>
<a id="pl.20.29"></a><var>20.29</var>contributions received after consolidation under subdivision 5, and a proportionate share <br/>
<a id="pl.20.30"></a><var>20.30</var>of any investment income earned after consolidation. From the consolidation account, <br/>
<a id="pl.20.31"></a><var>20.31</var>the association shall pay for the transfer of any required reserves to the Minnesota <br/>
<a id="pl.20.32"></a><var>20.32</var>postretirement investment fund on account of persons electing the type of benefit coverage <br/>
<a id="pl.20.33"></a><var>20.33</var>provided by the public employees police and fire fund under subdivisions 2 and 3 and <br/>
<a id="pl.20.34"></a><var>20.34</var>section 
<statute_ref>353.271, subdivision 2</statute_ref>, the pension and benefit amounts on account of persons <br/>
<a id="pl.21.1"></a><var>21.1</var>electing coverage by the relief association benefit plan under section 
         <statute_ref>353A.08</statute_ref>, the benefit <br/>
<a id="pl.21.2"></a><var>21.2</var>amounts not payable from the Minnesota postretirement investment fund on account of <br/>
<a id="pl.21.3"></a><var>21.3</var>persons electing the type of benefit coverage provided by the public employees police and <br/>
<a id="pl.21.4"></a><var>21.4</var>fire fund under section 
         <statute_ref>353A.08</statute_ref>, and any direct administrative expenses related to the <br/>
<a id="pl.21.5"></a><var>21.5</var>consolidation account, and the proportional share of the general administrative expenses <br/>
<a id="pl.21.6"></a><var>21.6</var>of the association. <br/>
<a id="pl.21.7"></a><var>21.7</var>(b) Except as otherwise provided for in this section, the liabilities and the assets <br/>
<a id="pl.21.8"></a><var>21.8</var>of a consolidation account must be considered for all purposes to be separate from the <br/>
<a id="pl.21.9"></a><var>21.9</var>balance of the public employees police and fire fund. The consolidation account must be <br/>
<a id="pl.21.10"></a><var>21.10</var>subject to separate accounting, a separate actuarial valuation, and must be reported as a <br/>
<a id="pl.21.11"></a><var>21.11</var>separate exhibit in any annual financial report or actuarial valuation report of the public <br/>
<a id="pl.21.12"></a><var>21.12</var>employees police and fire consolidation fund, whichever applies. The executive director <br/>
<a id="pl.21.13"></a><var>21.13</var>of the public employees retirement association shall maintain separate accounting records <br/>
<a id="pl.21.14"></a><var>21.14</var>and balances for each consolidation account.<br/>
<br/>
<a id="bill.1.53.0"></a><a id="pl.21.15"></a><var>21.15</var>    Sec. 53. Minnesota Statutes 2008, section 353A.10, subdivision 2, is amended to read:<br/>
<a id="pl.21.16"></a><var>21.16</var>    Subd. 2. <b>Collection of late contributions.</b> In the event of a refusal by a <br/>
<a id="pl.21.17"></a><var>21.17</var>municipality in which was located a local police or firefighters relief association which <br/>
<a id="pl.21.18"></a><var>21.18</var>has consolidated with the fund to pay to the fund any amount or amounts due under <br/>
<a id="pl.21.19"></a><var>21.19</var>section 
         <statute_ref>353A.09, subdivisions 2 4 to 6</statute_ref>, the executive director of the public employees <br/>
<a id="pl.21.20"></a><var>21.20</var>retirement association may notify the Department of Revenue, the Department of Finance, <br/>
<a id="pl.21.21"></a><var>21.21</var>and the state auditor of the refusal and commence the necessary procedure to collect the <br/>
<a id="pl.21.22"></a><var>21.22</var>amount or amounts due from the amount of any state aid under sections 
         <statute_ref>69.011</statute_ref> to 
         <statute_ref>69.051</statute_ref>, <br/>
<a id="pl.21.23"></a><var>21.23</var>amortization state aid under section 
         <statute_ref>423A.02</statute_ref>, or supplemental amortization state aid under <br/>
<a id="pl.21.24"></a><var>21.24</var>Laws 1984, chapter 564, section 48, as amended by Laws 1986, chapter 359, section 20, <br/>
<a id="pl.21.25"></a><var>21.25</var>which is payable to the municipality or to certify the amount or amounts due to the county <br/>
<a id="pl.21.26"></a><var>21.26</var>auditor for inclusion in the next tax levy of the municipality or for collection from other <br/>
<a id="pl.21.27"></a><var>21.27</var>revenue available to the municipality, or both. <br/>
<br/>
<a id="bill.1.54.0"></a><a id="pl.21.28"></a><var>21.28</var>    Sec. 54. Minnesota Statutes 2008, section 353A.10, subdivision 3, is amended to read:<br/>
<a id="pl.21.29"></a><var>21.29</var>    Subd. 3. <b>Levy and bonding authority.</b> A municipality in which was located a local <br/>
<a id="pl.21.30"></a><var>21.30</var>police or firefighters relief association that has consolidated with the fund may issue <br/>
<a id="pl.21.31"></a><var>21.31</var>general obligation bonds of the municipality to defray all or a portion of the principal <br/>
<a id="pl.21.32"></a><var>21.32</var>amounts specified in section 
         <statute_ref>353A.09, subdivisions 2 4 to 6</statute_ref>, or certify to the county <br/>
<a id="pl.21.33"></a><var>21.33</var>auditor a levy in the amount necessary to defray all or a portion of the principal amount <br/>
<a id="pl.21.34"></a><var>21.34</var>specified in section 
         <statute_ref>353A.09, subdivisions 2 4 to 6</statute_ref>, or the annual amount specified in <br/>
<a id="pl.22.1"></a><var>22.1</var>section 
         <statute_ref>353A.09, subdivisions 2 4 to 6</statute_ref>. The municipality may pledge the full faith, credit, <br/>
<a id="pl.22.2"></a><var>22.2</var>and taxing power of the municipality for the payment of the principal of and interest on the <br/>
<a id="pl.22.3"></a><var>22.3</var>general obligation bonds. Any municipal bond may be issued without an election under <br/>
<a id="pl.22.4"></a><var>22.4</var>section 
         <statute_ref>475.58</statute_ref> and may not be included in the net debt of the municipality for purposes of <br/>
<a id="pl.22.5"></a><var>22.5</var>any charter or statutory debt limitation, nor may any tax levy for the payment of bond <br/>
<a id="pl.22.6"></a><var>22.6</var>principal or interest be subject to any limitation concerning rate or amount established <br/>
<a id="pl.22.7"></a><var>22.7</var>by charter or law. <br/>
<br/>
<a id="bill.1.55.0"></a><a id="pl.22.8"></a><var>22.8</var>    Sec. 55. Minnesota Statutes 2008, section 353E.01, subdivision 3, is amended to read:<br/>
<a id="pl.22.9"></a><var>22.9</var>    Subd. 3. <b>Investment.</b> (a) The public employees local government correctional <br/>
<a id="pl.22.10"></a><var>22.10</var>service retirement fund participates in the Minnesota postretirement investment fund.<br/>
<a id="pl.22.11"></a><var>22.11</var>(b) The amounts provided in section 
<statute_ref>353.271</statute_ref> must be deposited in that fund.  <br/>
<a id="pl.22.12"></a><var>22.12</var>(c) The balance of any Assets of the public employees local government correctional <br/>
<a id="pl.22.13"></a><var>22.13</var>service retirement fund must be deposited in the Minnesota combined investment fund as <br/>
<a id="pl.22.14"></a><var>22.14</var>provided in section 
         <statute_ref>11A.14</statute_ref>, if applicable, or otherwise invested under section 
         <statute_ref>11A.23</statute_ref>.  <br/>
<br/>
<a id="bill.1.56.0"></a><a id="pl.22.15"></a><var>22.15</var>    Sec. 56. Minnesota Statutes 2008, section 353E.01, subdivision 5, is amended to read:<br/>
<a id="pl.22.16"></a><var>22.16</var>    Subd. 5. <b>Fund disbursement restricted.</b> (a) The public employees local <br/>
<a id="pl.22.17"></a><var>22.17</var>government correctional service retirement fund and its share of participation in the <br/>
<a id="pl.22.18"></a><var>22.18</var>Minnesota postretirement investment fund may be disbursed only for the purposes <br/>
<a id="pl.22.19"></a><var>22.19</var>provided for in this chapter.<br/>
<a id="pl.22.20"></a><var>22.20</var>(b) The proportional share of the necessary and reasonable administrative expenses <br/>
<a id="pl.22.21"></a><var>22.21</var>of the association and any benefits provided in this chapter, other than benefits payable <br/>
<a id="pl.22.22"></a><var>22.22</var>from the Minnesota postretirement investment fund, must be paid from the public <br/>
<a id="pl.22.23"></a><var>22.23</var>employees local government correctional service retirement fund. Retirement annuities, <br/>
<a id="pl.22.24"></a><var>22.24</var>disability benefits, survivorship benefits, and any refunds of accumulated deductions may <br/>
<a id="pl.22.25"></a><var>22.25</var>be paid only from the correctional service retirement fund after those needs have been <br/>
<a id="pl.22.26"></a><var>22.26</var>certified by the executive director and any applicable amounts withdrawn from the share <br/>
<a id="pl.22.27"></a><var>22.27</var>of participation in the Minnesota postretirement fund under section 
<statute_ref>11A.18</statute_ref>.  <br/>
<a id="pl.22.28"></a><var>22.28</var>(c) The amounts necessary to make the payments from the public employees local <br/>
<a id="pl.22.29"></a><var>22.29</var>government correctional service retirement fund and its participation in the Minnesota <br/>
<a id="pl.22.30"></a><var>22.30</var>postretirement investment fund are annually appropriated from those funds for those <br/>
<a id="pl.22.31"></a><var>22.31</var>purposes.<br/>
<br/>
<a id="bill.1.57.0"></a><a id="pl.22.32"></a><var>22.32</var>    Sec. 57. Minnesota Statutes 2008, section 353E.04, is amended by adding a subdivision <br/>
<a id="pl.22.33"></a><var>22.33</var>to read:<br/>
<a id="pl.23.1"></a><var>23.1</var>    Subd. 7. <b>Postretirement adjustment eligibility.</b> An annuity under this section is <br/>
<a id="pl.23.2"></a><var>23.2</var>eligible for postretirement adjustments under section 356.415.<br/>
<br/>
<a id="bill.1.58.0"></a><a id="pl.23.3"></a><var>23.3</var>    Sec. 58. Minnesota Statutes 2008, section 353E.06, is amended by adding a subdivision <br/>
<a id="pl.23.4"></a><var>23.4</var>to read:<br/>
<a id="pl.23.5"></a><var>23.5</var>    Subd. 9. <b>Postretirement adjustment eligibility.</b> A disability benefit under this <br/>
<a id="pl.23.6"></a><var>23.6</var>section is eligible for postretirement adjustments under section 356.415.<br/>
<br/>
<a id="bill.1.59.0"></a><a id="pl.23.7"></a><var>23.7</var>    Sec. 59. Minnesota Statutes 2008, section 353E.07, is amended by adding a subdivision <br/>
<a id="pl.23.8"></a><var>23.8</var>to read:<br/>
<a id="pl.23.9"></a><var>23.9</var>    Subd. 8. <b>Postretirement adjustment eligibility.</b> A survivor benefit under this <br/>
<a id="pl.23.10"></a><var>23.10</var>section is eligible for postretirement adjustments under section 356.415.<br/>
<br/>
<a id="bill.1.60.0"></a><a id="pl.23.11"></a><var>23.11</var>    Sec. 60. Minnesota Statutes 2008, section 354.07, subdivision 4, is amended to read:<br/>
<a id="pl.23.12"></a><var>23.12</var>    Subd. 4. <b>Certification of funds to State Board of Investment.</b> It shall be is <br/>
<a id="pl.23.13"></a><var>23.13</var>the duty of the board from time to time to certify to the State Board of Investment for <br/>
<a id="pl.23.14"></a><var>23.14</var>investment as much of the funds in its hands as shall not be needed for current purposes. <br/>
<a id="pl.23.15"></a><var>23.15</var>Such funds that are certified as to investment in the postretirement investment fund shall <br/>
<a id="pl.23.16"></a><var>23.16</var>include the amount as required for the total reserves needed for the purposes described <br/>
<a id="pl.23.17"></a><var>23.17</var>in section 
<statute_ref>354.63</statute_ref>. The State Board of Investment shall thereupon transfer such assets <br/>
<a id="pl.23.18"></a><var>23.18</var>to the appropriate fund provided herein, in accordance with the procedure set forth in <br/>
<a id="pl.23.19"></a><var>23.19</var>section 
<statute_ref>354.63</statute_ref>, or invest and reinvest an amount equal to the sum so certified in such <br/>
<a id="pl.23.20"></a><var>23.20</var>securities as are now or may hereafter be duly authorized legal investments for state <br/>
<a id="pl.23.21"></a><var>23.21</var>employees retirement fund and all such securities so transferred or purchased shall must <br/>
<a id="pl.23.22"></a><var>23.22</var>be deposited with the commissioner of finance. All interest from these investments shall <br/>
<a id="pl.23.23"></a><var>23.23</var>must be credited to the appropriate funds teachers retirement fund and used for current <br/>
<a id="pl.23.24"></a><var>23.24</var>purposes or investments, except as hereinafter provided. The State Board of Investment <br/>
<a id="pl.23.25"></a><var>23.25</var>shall have has authority to sell, convey, and exchange such securities and invest and <br/>
<a id="pl.23.26"></a><var>23.26</var>reinvest the funds when it deems it desirable to do so, and shall must sell securities upon <br/>
<a id="pl.23.27"></a><var>23.27</var>request of the officers of the association when such officers determine funds are needed <br/>
<a id="pl.23.28"></a><var>23.28</var>for its purposes. All of the provisions regarding accounting procedures and restrictions <br/>
<a id="pl.23.29"></a><var>23.29</var>and conditions for the purchase and sale of securities for the state employees retirement <br/>
<a id="pl.23.30"></a><var>23.30</var>fund shall under chapter 11A must apply to the accounting, purchase and sale of securities <br/>
<a id="pl.23.31"></a><var>23.31</var>for the Teachers' Retirement Association. <br/>
<br/>
<a id="bill.1.61.0"></a><a id="pl.23.32"></a><var>23.32</var>    Sec. 61. Minnesota Statutes 2008, section 354.33, subdivision 5, is amended to read:<br/>
<a id="pl.24.1"></a><var>24.1</var>    Subd. 5. <b>Retirees not eligible for federal benefits.</b> When any person retires after <br/>
<a id="pl.24.2"></a><var>24.2</var>July 1, 1973, who (1) has ten or more years of allowable service, and (2) does not have any <br/>
<a id="pl.24.3"></a><var>24.3</var>retroactive Social Security coverage by reason of the person's position in the retirement <br/>
<a id="pl.24.4"></a><var>24.4</var>system, and (3) does not qualify for federal old age and survivor primary benefits at the <br/>
<a id="pl.24.5"></a><var>24.5</var>time of retirement, the annuity must be computed under section 
         <statute_ref>354.44, subdivision 2</statute_ref>, of <br/>
<a id="pl.24.6"></a><var>24.6</var>the law in effect on June 30, 1969, except that accumulations after June 30, 1957, must be <br/>
<a id="pl.24.7"></a><var>24.7</var>calculated using the same most recent mortality table approved under section 356.215, <br/>
<a id="pl.24.8"></a><var>24.8</var>subdivision 18, and interest assumption as are used to transfer the required reserves to the <br/>
<a id="pl.24.9"></a><var>24.9</var>Minnesota postretirement investment fund using the applicable postretirement interest rate <br/>
<a id="pl.24.10"></a><var>24.10</var>assumption specified in section 356.215, subdivision 8.<br/>
<br/>
<a id="bill.1.62.0"></a><a id="pl.24.11"></a><var>24.11</var>    Sec. 62. Minnesota Statutes 2008, section 354.35, is amended by adding a subdivision <br/>
<a id="pl.24.12"></a><var>24.12</var>to read:<br/>
<a id="pl.24.13"></a><var>24.13</var>    Subd. 3. <b>Postretirement adjustment eligibility.</b> An annuity under this section is <br/>
<a id="pl.24.14"></a><var>24.14</var>eligible for postretirement adjustments under section 356.415.<br/>
<br/>
<a id="bill.1.63.0"></a><a id="pl.24.15"></a><var>24.15</var>    Sec. 63. Minnesota Statutes 2008, section 354.42, subdivision 1a, is amended to read:<br/>
<a id="pl.24.16"></a><var>24.16</var>    Subd. 1a. <b>Teachers retirement fund.</b> (a) Within the Teachers Retirement <br/>
<a id="pl.24.17"></a><var>24.17</var>Association and the state treasury is created a special retirement fund, which must include <br/>
<a id="pl.24.18"></a><var>24.18</var>all the assets of the Teachers Retirement Association and all revenue of the association. <br/>
<a id="pl.24.19"></a><var>24.19</var>The fund is the continuation of the fund established under Laws 1931, chapter 406, section <br/>
<a id="pl.24.20"></a><var>24.20</var>2, notwithstanding the repeal of Minnesota Statutes 1973, section 
         <statute_ref>354.42, subdivision 1</statute_ref>, <br/>
<a id="pl.24.21"></a><var>24.21</var>by Laws 1974, chapter 289, section 59.<br/>
<a id="pl.24.22"></a><var>24.22</var>(b) The teachers retirement fund must be credited with all employee and employer <br/>
<a id="pl.24.23"></a><var>24.23</var>contributions, all investment revenue and gains, and all other income authorized by law.<br/>
<a id="pl.24.24"></a><var>24.24</var>(c) From the teachers retirement fund is appropriated the payments of annuities <br/>
<a id="pl.24.25"></a><var>24.25</var>and benefits authorized by this chapter, the transfers to the Minnesota postretirement <br/>
<a id="pl.24.26"></a><var>24.26</var>investment fund, and the reasonable and necessary expenses of administering the fund <br/>
<a id="pl.24.27"></a><var>24.27</var>and the association.<br/>
<br/>
<a id="bill.1.64.0"></a><a id="pl.24.28"></a><var>24.28</var>    Sec. 64. Minnesota Statutes 2008, section 354.44, is amended by adding a subdivision <br/>
<a id="pl.24.29"></a><var>24.29</var>to read:<br/>
<a id="pl.24.30"></a><var>24.30</var>    Subd. 7a. <b>Postretirement adjustment eligibility.</b> (a) A retirement annuity under <br/>
<a id="pl.24.31"></a><var>24.31</var>subdivision 2 or 6 is eligible for postretirement adjustments under section 356.415.<br/>
<a id="pl.24.32"></a><var>24.32</var>(b) Retirement annuities payable from the teachers retirement plan must not be in <br/>
<a id="pl.24.33"></a><var>24.33</var>an amount less than the amount originally determined on the date of retirement and as <br/>
<a id="pl.25.1"></a><var>25.1</var>adjusted on each succeeding January 1 under Minnesota Statutes 2008, section 11A.18, <br/>
<a id="pl.25.2"></a><var>25.2</var>before January 1, 2010, and under section 356.415 after December 31, 2009.<br/>
<br/>
<a id="bill.1.65.0"></a><a id="pl.25.3"></a><var>25.3</var>    Sec. 65. Minnesota Statutes 2008, section 354.46, is amended by adding a subdivision <br/>
<a id="pl.25.4"></a><var>25.4</var>to read:<br/>
<a id="pl.25.5"></a><var>25.5</var>    Subd. 7. <b>Postretirement adjustment eligibility.</b> A survivor benefit under <br/>
<a id="pl.25.6"></a><var>25.6</var>subdivision 1, 2, 2a, or 2b, is eligible for postretirement adjustments under section 356.415.<br/>
<br/>
<a id="bill.1.66.0"></a><a id="pl.25.7"></a><var>25.7</var>    Sec. 66. Minnesota Statutes 2008, section 354.48, is amended by adding a subdivision <br/>
<a id="pl.25.8"></a><var>25.8</var>to read:<br/>
<a id="pl.25.9"></a><var>25.9</var>    Subd. 11. <b>Postretirement adjustment eligibility.</b> A disability benefit under this <br/>
<a id="pl.25.10"></a><var>25.10</var>section is eligible for postretirement adjustments under section 356.415.<br/>
<br/>
<a id="bill.1.67.0"></a><a id="pl.25.11"></a><var>25.11</var>    Sec. 67. Minnesota Statutes 2008, section 354.55, subdivision 13, is amended to read:<br/>
<a id="pl.25.12"></a><var>25.12</var>    Subd. 13. <b>Pre-1969 law retirements.</b> Any person who ceased teaching service <br/>
<a id="pl.25.13"></a><var>25.13</var>prior to July 1, 1968, who has ten years or more of allowable service and left accumulated <br/>
<a id="pl.25.14"></a><var>25.14</var>deductions in the fund for the purpose of receiving when eligible a retirement annuity, <br/>
<a id="pl.25.15"></a><var>25.15</var>and retires shall must have the annuity computed in accordance with the law in effect on <br/>
<a id="pl.25.16"></a><var>25.16</var>June 30, 1969, except that the portion of the annuity based on accumulations after June 30, <br/>
<a id="pl.25.17"></a><var>25.17</var>1957, under Minnesota Statutes 1967, section 
         <statute_ref>354.44, subdivision 2</statute_ref>, and accumulations <br/>
<a id="pl.25.18"></a><var>25.18</var>under Minnesota Statutes 1967, section 
         <statute_ref>354.33, subdivision 1</statute_ref>, shall must be calculated <br/>
<a id="pl.25.19"></a><var>25.19</var>using the mortality table established by the board under section 
         <statute_ref>354.07, subdivision 1</statute_ref>, <br/>
<a id="pl.25.20"></a><var>25.20</var>and approved under section 356.215, subdivision 18, and the postretirement interest rate <br/>
<a id="pl.25.21"></a><var>25.21</var>assumption specified in section 
         <statute_ref>356.215</statute_ref>, to transfer the required reserves to the Minnesota <br/>
<a id="pl.25.22"></a><var>25.22</var>postretirement investment fund subdivision 8. <br/>
<br/>
<a id="bill.1.68.0"></a><a id="pl.25.23"></a><var>25.23</var>    Sec. 68. Minnesota Statutes 2008, section 354.70, subdivision 5, is amended to read:<br/>
<a id="pl.25.24"></a><var>25.24</var>    Subd. 5. <b>Transfer of assets.</b> (a) On or before June 30, 2006, the chief administrative <br/>
<a id="pl.25.25"></a><var>25.25</var>officer of the Minneapolis Teachers Retirement Fund Association shall transfer to the <br/>
<a id="pl.25.26"></a><var>25.26</var>Teachers Retirement Association the entire assets of the special retirement fund of the <br/>
<a id="pl.25.27"></a><var>25.27</var>Minneapolis Teachers Retirement Fund Association. The transfer of the assets of the <br/>
<a id="pl.25.28"></a><var>25.28</var>Minneapolis Teachers Retirement Fund Association special retirement fund must include <br/>
<a id="pl.25.29"></a><var>25.29</var>any accounts receivable that are determined by the executive director of the State Board of <br/>
<a id="pl.25.30"></a><var>25.30</var>Investment as reasonably capable of being collected. Legal title to account receivables that <br/>
<a id="pl.25.31"></a><var>25.31</var>are determined by the executive director of the State Board of Investment as not reasonably <br/>
<a id="pl.25.32"></a><var>25.32</var>capable of being collected transfers to Special School District No. 1, Minneapolis, as of <br/>
<a id="pl.26.1"></a><var>26.1</var>the date of the determination of the executive director of the State Board of Investment. <br/>
<a id="pl.26.2"></a><var>26.2</var>If the account receivables transferred to Special School District No. 1, Minneapolis, <br/>
<a id="pl.26.3"></a><var>26.3</var>are subsequently recovered by the school district, the superintendent of Special School <br/>
<a id="pl.26.4"></a><var>26.4</var>District No. 1, Minneapolis, shall transfer the recovered amount to the executive director <br/>
<a id="pl.26.5"></a><var>26.5</var>of the Teachers Retirement Association, in cash, for deposit in the teachers retirement <br/>
<a id="pl.26.6"></a><var>26.6</var>fund, less the reasonable expenses of the school district related to the recovery.<br/>
<a id="pl.26.7"></a><var>26.7</var>(b) As of June 30, 2006, assets of the special retirement fund of the Minneapolis <br/>
<a id="pl.26.8"></a><var>26.8</var>Teachers Retirement Fund Association are assets of the Teachers Retirement Association <br/>
<a id="pl.26.9"></a><var>26.9</var>to be invested by the State Board of Investment pursuant to the provisions of section <br/>
<statute_ref><a id="pl.26.10"></a><var>26.10</var>354.07
         </statute_ref>, subdivision 4. The Teachers Retirement Association is the successor in interest to <br/>
<a id="pl.26.11"></a><var>26.11</var>all claims which the Minneapolis Teachers Retirement Fund Association may have or may <br/>
<a id="pl.26.12"></a><var>26.12</var>assert against any person and is the successor in interest to all claims which could have <br/>
<a id="pl.26.13"></a><var>26.13</var>been asserted against the former Minneapolis Teachers Retirement Fund Association, <br/>
<a id="pl.26.14"></a><var>26.14</var>subject to the following exceptions and qualifications: <br/>
<a id="pl.26.15"></a><var>26.15</var>(1) the Teachers Retirement Association is not liable for any claim against the <br/>
<a id="pl.26.16"></a><var>26.16</var>Minneapolis Teachers Retirement Fund Association, its former board or board members, <br/>
<a id="pl.26.17"></a><var>26.17</var>which is founded upon a claim of breach of fiduciary duty, where the act or acts <br/>
<a id="pl.26.18"></a><var>26.18</var>constituting the claimed breach were not done in good faith;<br/>
<a id="pl.26.19"></a><var>26.19</var> (2) the Teachers Retirement Association may assert any applicable defense to any <br/>
<a id="pl.26.20"></a><var>26.20</var>claim in any judicial or administrative proceeding that the former Minneapolis Teachers <br/>
<a id="pl.26.21"></a><var>26.21</var>Retirement Fund Association or its board would otherwise have been entitled to assert; <br/>
<a id="pl.26.22"></a><var>26.22</var>(3) the Teachers Retirement Association may assert any applicable defense that the <br/>
<a id="pl.26.23"></a><var>26.23</var>Teachers Retirement Association may assert in its capacity as a statewide agency; and <br/>
<a id="pl.26.24"></a><var>26.24</var>(4) the Teachers Retirement Association shall indemnify any former fiduciary of the <br/>
<a id="pl.26.25"></a><var>26.25</var>Minneapolis Teachers Retirement Fund Association consistent with the provisions of the <br/>
<a id="pl.26.26"></a><var>26.26</var>Public Pension Fiduciary Responsibility Act, in section 
         <statute_ref>356A.11</statute_ref>.<br/>
<a id="pl.26.27"></a><var>26.27</var>(c) From the assets of the former Minneapolis Teachers Retirement Fund Association <br/>
<a id="pl.26.28"></a><var>26.28</var>transferred to the Teachers Retirement Association, an amount equal to the percentage <br/>
<a id="pl.26.29"></a><var>26.29</var>figure that represents the ratio between the market value of the Minnesota postretirement <br/>
<a id="pl.26.30"></a><var>26.30</var>investment fund as of June 30, 2006, and the required reserves of the Minnesota <br/>
<a id="pl.26.31"></a><var>26.31</var>postretirement investment fund as of June 30, 2006, applied to the present value of <br/>
<a id="pl.26.32"></a><var>26.32</var>future benefits payable to annuitants of the former Minneapolis Teachers Retirement <br/>
<a id="pl.26.33"></a><var>26.33</var>Fund Association as of June 30, 2006, including any postretirement adjustment from the <br/>
<a id="pl.26.34"></a><var>26.34</var>Minnesota postretirement investment fund expected to be payable on January 1, 2007, <br/>
<a id="pl.26.35"></a><var>26.35</var>must be transferred to the Minnesota postretirement investment fund. The executive <br/>
<a id="pl.26.36"></a><var>26.36</var>director of the State Board of Investment shall estimate this ratio at the time of the <br/>
<a id="pl.27.1"></a><var>27.1</var>transfer. By January 1, 2007, after all necessary financial information becomes available <br/>
<a id="pl.27.2"></a><var>27.2</var>to determine the actual funded ratio of the Minnesota postretirement investment fund, the <br/>
<a id="pl.27.3"></a><var>27.3</var>postretirement investment fund must refund to the Teachers Retirement Association any <br/>
<a id="pl.27.4"></a><var>27.4</var>excess assets or the Teachers Retirement Association must contribute any deficiency to <br/>
<a id="pl.27.5"></a><var>27.5</var>the Minnesota postretirement investment fund with interest under Minnesota Statutes <br/>
<a id="pl.27.6"></a><var>27.6</var>2008, section 
         <statute_ref>11A.18</statute_ref>, subdivision 6. The balance of the assets of the former Minneapolis <br/>
<a id="pl.27.7"></a><var>27.7</var>Teachers Retirement Fund Association after the transfer to the Minnesota postretirement <br/>
<a id="pl.27.8"></a><var>27.8</var>investment fund must be credited to the Teachers Retirement Association.<br/>
<a id="pl.27.9"></a><var>27.9</var>(d) If the assets transferred by the Minneapolis Teachers Retirement Fund <br/>
<a id="pl.27.10"></a><var>27.10</var>Association to the Teachers Retirement Association are insufficient to meet its obligation <br/>
<a id="pl.27.11"></a><var>27.11</var>to the Minnesota postretirement investment fund, additional assets must be transferred by <br/>
<a id="pl.27.12"></a><var>27.12</var>the executive director of the Teachers Retirement Association to meet the amount required.<br/>
<br/>
<a id="bill.1.69.0"></a><a id="pl.27.13"></a><var>27.13</var>    Sec. 69. Minnesota Statutes 2008, section 354.70, subdivision 6, is amended to read:<br/>
<a id="pl.27.14"></a><var>27.14</var>    Subd. 6. <b>Benefit calculation.</b> (a) For every deferred, inactive, disabled, and retired <br/>
<a id="pl.27.15"></a><var>27.15</var>member of the Minneapolis Teachers Retirement Fund Association transferred under <br/>
<a id="pl.27.16"></a><var>27.16</var>subdivision 1, and the survivors of these members, annuities or benefits earned before <br/>
<a id="pl.27.17"></a><var>27.17</var>the date of the transfer, other than future postretirement adjustments, must be calculated <br/>
<a id="pl.27.18"></a><var>27.18</var>and paid by the Teachers Retirement Association under the laws, articles of incorporation, <br/>
<a id="pl.27.19"></a><var>27.19</var>and bylaws of the former Minneapolis Teachers Retirement Fund Association that were <br/>
<a id="pl.27.20"></a><var>27.20</var>in effect relative to the person on the date of the person's termination of active service <br/>
<a id="pl.27.21"></a><var>27.21</var>covered by the former Minneapolis Teachers Retirement Fund Association.<br/>
<a id="pl.27.22"></a><var>27.22</var>(b) Former Minneapolis Teachers Retirement Fund Association members who <br/>
<a id="pl.27.23"></a><var>27.23</var>retired before July 1, 2006, must receive postretirement adjustments after December 31, <br/>
<a id="pl.27.24"></a><var>27.24</var>2006, only as provided in Minnesota Statutes 2008, section 
         <statute_ref>11A.18</statute_ref> or section 356.415. All <br/>
<a id="pl.27.25"></a><var>27.25</var>other benefit recipients of the former Minneapolis Teachers Retirement Fund Association <br/>
<a id="pl.27.26"></a><var>27.26</var>must receive postretirement adjustments after December 31, 2006, only as provided in <br/>
<a id="pl.27.27"></a><var>27.27</var>section 
         <statute_ref>356.41</statute_ref> 356.415.<br/>
<a id="pl.27.28"></a><var>27.28</var>(c) This consolidation does not impair or diminish benefits for an active, deferred, <br/>
<a id="pl.27.29"></a><var>27.29</var>or retired member or a survivor of an active, deferred, or retired member under the <br/>
<a id="pl.27.30"></a><var>27.30</var>former Minneapolis Teachers Retirement Fund Association in existence at the time of the <br/>
<a id="pl.27.31"></a><var>27.31</var>consolidation, except that any future guaranteed or investment-related postretirement <br/>
<a id="pl.27.32"></a><var>27.32</var>adjustments must be paid after July 1, 2006, in accordance with paragraph (b), and all <br/>
<a id="pl.27.33"></a><var>27.33</var>benefits based on service on or after July 1, 2006, must be determined only by laws <br/>
<a id="pl.27.34"></a><var>27.34</var>governing the Teachers Retirement Association.<br/>
<br/>
<a id="bill.1.70.0"></a><a id="pl.28.1"></a><var>28.1</var>    Sec. 70. Minnesota Statutes 2008, section 356.215, subdivision 1, is amended to read:<br/>
<a id="pl.28.2"></a><var>28.2</var>    Subdivision 1. <b>Definitions.</b> (a) For the purposes of sections 
         <statute_ref>3.85</statute_ref> and 
         <statute_ref>356.20</statute_ref> to <br/>
<statute_ref><a id="pl.28.3"></a><var>28.3</var>356.23
         </statute_ref>, each of the terms in the following paragraphs has the meaning given. <br/>
<a id="pl.28.4"></a><var>28.4</var>    (b) "Actuarial valuation" means a set of calculations prepared by an actuary retained <br/>
<a id="pl.28.5"></a><var>28.5</var>under section 
         <statute_ref>356.214 </statute_ref>if so required under section 
         <statute_ref>3.85</statute_ref>, or otherwise, by an approved <br/>
<a id="pl.28.6"></a><var>28.6</var>actuary, to determine the normal cost and the accrued actuarial liabilities of a benefit <br/>
<a id="pl.28.7"></a><var>28.7</var>plan, according to the entry age actuarial cost method and based upon stated assumptions <br/>
<a id="pl.28.8"></a><var>28.8</var>including, but not limited to rates of interest, mortality, salary increase, disability, <br/>
<a id="pl.28.9"></a><var>28.9</var>withdrawal, and retirement and to determine the payment necessary to amortize over a <br/>
<a id="pl.28.10"></a><var>28.10</var>stated period any unfunded accrued actuarial liability disclosed as a result of the actuarial <br/>
<a id="pl.28.11"></a><var>28.11</var>valuation of the benefit plan. <br/>
<a id="pl.28.12"></a><var>28.12</var>    (c) "Approved actuary" means a person who is regularly engaged in the business of <br/>
<a id="pl.28.13"></a><var>28.13</var>providing actuarial services and who is a fellow in the Society of Actuaries.<br/>
<a id="pl.28.14"></a><var>28.14</var>    (d) "Entry age actuarial cost method" means an actuarial cost method under which <br/>
<a id="pl.28.15"></a><var>28.15</var>the actuarial present value of the projected benefits of each individual currently covered <br/>
<a id="pl.28.16"></a><var>28.16</var>by the benefit plan and included in the actuarial valuation is allocated on a level basis over <br/>
<a id="pl.28.17"></a><var>28.17</var>the service of the individual, if the benefit plan is governed by section 
         <statute_ref>69.773</statute_ref>, or over the <br/>
<a id="pl.28.18"></a><var>28.18</var>earnings of the individual, if the benefit plan is governed by any other law, between the <br/>
<a id="pl.28.19"></a><var>28.19</var>entry age and the assumed exit age, with the portion of the actuarial present value which is <br/>
<a id="pl.28.20"></a><var>28.20</var>allocated to the valuation year to be the normal cost and the portion of the actuarial present <br/>
<a id="pl.28.21"></a><var>28.21</var>value not provided for at the valuation date by the actuarial present value of future normal <br/>
<a id="pl.28.22"></a><var>28.22</var>costs to be the actuarial accrued liability, with aggregation in the calculation process to be <br/>
<a id="pl.28.23"></a><var>28.23</var>the sum of the calculated result for each covered individual and with recognition given to <br/>
<a id="pl.28.24"></a><var>28.24</var>any different benefit formulas which may apply to various periods of service.<br/>
<a id="pl.28.25"></a><var>28.25</var>    (e) "Experience study" means a report providing experience data and an actuarial <br/>
<a id="pl.28.26"></a><var>28.26</var>analysis of the adequacy of the actuarial assumptions on which actuarial valuations are <br/>
<a id="pl.28.27"></a><var>28.27</var>based.<br/>
<a id="pl.28.28"></a><var>28.28</var>    (f) "Actuarial value of assets" means:<br/>
<a id="pl.28.29"></a><var>28.29</var>(1) For the July 1, 2009, actuarial valuation, the market value of all assets as of <br/>
<a id="pl.28.30"></a><var>28.30</var>the preceding June 30, 2009, reduced by:<br/>
<a id="pl.28.31"></a><var>28.31</var>    (1) (i) 20 percent of the difference between the actual net change in the market value <br/>
<a id="pl.28.32"></a><var>28.32</var>of assets other than the Minnesota postretirement investment fund between the June 30 <br/>
<a id="pl.28.33"></a><var>28.33</var>that occurred three years earlier, 2006, and the June 30 that occurred four years earlier, <br/>
<a id="pl.28.34"></a><var>28.34</var>2005, and the computed increase in the market value of assets other than the Minnesota <br/>
<a id="pl.28.35"></a><var>28.35</var>postretirement investment fund over that fiscal year period if the assets had increased at <br/>
<a id="pl.28.36"></a><var>28.36</var>the percentage preretirement interest rate assumption used in the actuarial valuation for <br/>
<a id="pl.29.1"></a><var>29.1</var>the July 1 that occurred four years earlier earned a rate of return on assets equal to the <br/>
<a id="pl.29.2"></a><var>29.2</var>annual percentage preretirement interest rate assumption used in the actuarial valuation <br/>
<a id="pl.29.3"></a><var>29.3</var>for July 1, 2005;<br/>
<a id="pl.29.4"></a><var>29.4</var>    (2) (ii) 40 percent of the difference between the actual net change in the market <br/>
<a id="pl.29.5"></a><var>29.5</var>value of assets other than the Minnesota postretirement investment fund between the <br/>
<a id="pl.29.6"></a><var>29.6</var>June 30 that occurred two years earlier, 2007, and the June 30 that occurred three years <br/>
<a id="pl.29.7"></a><var>29.7</var>earlier, 2006, and the computed increase in the market value of assets other than the <br/>
<a id="pl.29.8"></a><var>29.8</var>Minnesota postretirement investment fund over that fiscal year period if the assets had <br/>
<a id="pl.29.9"></a><var>29.9</var>increased at the percentage preretirement interest rate assumption used in the actuarial <br/>
<a id="pl.29.10"></a><var>29.10</var>valuation for the July 1 that occurred three years earlier earned a rate of return on assets <br/>
<a id="pl.29.11"></a><var>29.11</var>equal to the annual percentage preretirement interest rate assumption used in the actuarial <br/>
<a id="pl.29.12"></a><var>29.12</var>valuation for July 1, 2006;<br/>
<a id="pl.29.13"></a><var>29.13</var>    (3) (iii) 60 percent of the difference between the actual net change in the market <br/>
<a id="pl.29.14"></a><var>29.14</var>value of assets other than the Minnesota postretirement investment fund between the <br/>
<a id="pl.29.15"></a><var>29.15</var>June 30 that occurred one year earlier, 2008, and the June 30 that occurred two years <br/>
<a id="pl.29.16"></a><var>29.16</var>earlier, 2007, and the computed increase in the market value of assets other than the <br/>
<a id="pl.29.17"></a><var>29.17</var>Minnesota postretirement investment fund over that fiscal year period if the assets had <br/>
<a id="pl.29.18"></a><var>29.18</var>increased at the percentage preretirement interest rate assumption used in the actuarial <br/>
<a id="pl.29.19"></a><var>29.19</var>valuation for the July 1 that occurred two years earlier earned a rate of return on assets <br/>
<a id="pl.29.20"></a><var>29.20</var>equal to the annual percentage preretirement interest rate assumption used in the actuarial <br/>
<a id="pl.29.21"></a><var>29.21</var>valuation for July 1, 2007; and<br/>
<a id="pl.29.22"></a><var>29.22</var>    (4) (iv) 80 percent of the difference between the actual net change in the market <br/>
<a id="pl.29.23"></a><var>29.23</var>value of assets other than the Minnesota postretirement investment fund between the <br/>
<a id="pl.29.24"></a><var>29.24</var>immediately prior June 30, 2009, and the June 30 that occurred one year earlier, 2008, <br/>
<a id="pl.29.25"></a><var>29.25</var>and the computed increase in the market value of assets other than the Minnesota <br/>
<a id="pl.29.26"></a><var>29.26</var>postretirement investment fund over that fiscal year period if the assets had increased at <br/>
<a id="pl.29.27"></a><var>29.27</var>the percentage preretirement interest rate assumption used in the actuarial valuation for <br/>
<a id="pl.29.28"></a><var>29.28</var>the July 1 that occurred one year earlier. earned a rate of return on assets equal to the <br/>
<a id="pl.29.29"></a><var>29.29</var>annual percentage preretirement interest rate assumption used in the actuarial valuation <br/>
<a id="pl.29.30"></a><var>29.30</var>for July 1, 2008; and<br/>
<a id="pl.29.31"></a><var>29.31</var>(v) if applicable, 80 percent of the difference between the actual net change in the <br/>
<a id="pl.29.32"></a><var>29.32</var>market value of the Minnesota postretirement investment fund between June 30, 2009, <br/>
<a id="pl.29.33"></a><var>29.33</var>and June 30, 2008, and the computed increase in the market value of assets over that fiscal <br/>
<a id="pl.29.34"></a><var>29.34</var>year period if the assets had increased at 8.5 percent annually.<br/>
<a id="pl.29.35"></a><var>29.35</var>(2) For the July 1, 2010, actuarial valuation, the market value of all assets as of <br/>
<a id="pl.29.36"></a><var>29.36</var>June 30, 2010, reduced by: <br/>
<a id="pl.30.1"></a><var>30.1</var>(i) 20 percent of the difference between the actual net change in the market value of <br/>
<a id="pl.30.2"></a><var>30.2</var>assets other than the Minnesota postretirement investment fund between June 30, 2007, <br/>
<a id="pl.30.3"></a><var>30.3</var>and June 30, 2006, and the computed increase in the market value of assets other than the <br/>
<a id="pl.30.4"></a><var>30.4</var>Minnesota postretirement investment fund over that fiscal year period if the assets had <br/>
<a id="pl.30.5"></a><var>30.5</var>earned a rate of return on assets equal to the annual percentage preretirement interest rate <br/>
<a id="pl.30.6"></a><var>30.6</var>assumption used in the actuarial valuation for July 1, 2006;<br/>
<a id="pl.30.7"></a><var>30.7</var>(ii) 40 percent of the difference between the actual net change in the market value of <br/>
<a id="pl.30.8"></a><var>30.8</var>assets other than the Minnesota postretirement investment fund between June 30, 2008, <br/>
<a id="pl.30.9"></a><var>30.9</var>and June 30, 2007, and the computed increase in the market value of assets other than the <br/>
<a id="pl.30.10"></a><var>30.10</var>Minnesota postretirement investment fund over that fiscal year period if the assets had <br/>
<a id="pl.30.11"></a><var>30.11</var>earned a rate of return on assets equal to the annual percentage preretirement interest rate <br/>
<a id="pl.30.12"></a><var>30.12</var>assumption used in the actuarial valuation for July 1, 2007;<br/>
<a id="pl.30.13"></a><var>30.13</var>(iii) 60 percent of the difference between the actual net change in the market value <br/>
<a id="pl.30.14"></a><var>30.14</var>of assets other than the Minnesota postretirement investment fund between June 30, 2009, <br/>
<a id="pl.30.15"></a><var>30.15</var>and June 30, 2008, and the computed increase in the market value of assets other than the <br/>
<a id="pl.30.16"></a><var>30.16</var>Minnesota postretirement investment fund over that fiscal year period if the assets had <br/>
<a id="pl.30.17"></a><var>30.17</var>earned a rate of return on assets equal to the annual percentage preretirement interest rate <br/>
<a id="pl.30.18"></a><var>30.18</var>assumption used in the actuarial valuation for July 1, 2008; <br/>
<a id="pl.30.19"></a><var>30.19</var>(iv) 80 percent of the difference between the actual net change in the market value of <br/>
<a id="pl.30.20"></a><var>30.20</var>total assets between June 30, 2010, and June 30, 2009, and the computed increase in the <br/>
<a id="pl.30.21"></a><var>30.21</var>market value of total assets over that fiscal year period if the assets had earned a rate of <br/>
<a id="pl.30.22"></a><var>30.22</var>return on assets equal to the annual percentage preretirement interest rate assumption used <br/>
<a id="pl.30.23"></a><var>30.23</var>in the actuarial valuation for July 1, 2009; and<br/>
<a id="pl.30.24"></a><var>30.24</var>(v) if applicable, 60 percent of the difference between the actual net change in the <br/>
<a id="pl.30.25"></a><var>30.25</var>market value of the Minnesota postretirement investment fund between June 30, 2009, <br/>
<a id="pl.30.26"></a><var>30.26</var>and June 30, 2008, and the computed increase in the market value of assets over that fiscal <br/>
<a id="pl.30.27"></a><var>30.27</var>year period if the assets had increased at 8.5 percent annually.<br/>
<a id="pl.30.28"></a><var>30.28</var>(3) For the July 1, 2011, actuarial valuation, the market value of all assets as of <br/>
<a id="pl.30.29"></a><var>30.29</var>June 30, 2011, reduced by:<br/>
<a id="pl.30.30"></a><var>30.30</var>(i) 20 percent of the difference between the actual net change in the market value of <br/>
<a id="pl.30.31"></a><var>30.31</var>assets other than the Minnesota postretirement investment fund between June 30, 2008, <br/>
<a id="pl.30.32"></a><var>30.32</var>and June 30, 2007, and the computed increase in the market value of assets other than the <br/>
<a id="pl.30.33"></a><var>30.33</var>Minnesota postretirement investment fund over that fiscal year period if the assets had <br/>
<a id="pl.30.34"></a><var>30.34</var>earned a rate of return on assets equal to the annual percentage preretirement interest rate <br/>
<a id="pl.30.35"></a><var>30.35</var>assumption used in the actuarial valuation for July 1, 2007;<br/>
<a id="pl.31.1"></a><var>31.1</var>(ii) 40 percent of the difference between the actual net change in the market value of <br/>
<a id="pl.31.2"></a><var>31.2</var>assets other than the Minnesota postretirement investment fund between June 30, 2009, <br/>
<a id="pl.31.3"></a><var>31.3</var>and June 30, 2008, and the computed increase in the market value of assets other than the <br/>
<a id="pl.31.4"></a><var>31.4</var>Minnesota postretirement investment fund over that fiscal year period if the assets had <br/>
<a id="pl.31.5"></a><var>31.5</var>earned a rate of return on assets equal to the annual percentage preretirement interest rate <br/>
<a id="pl.31.6"></a><var>31.6</var>assumption used in the actuarial valuation for July 1, 2008;<br/>
<a id="pl.31.7"></a><var>31.7</var>(iii) 60 percent of the difference between the actual net change in the market value <br/>
<a id="pl.31.8"></a><var>31.8</var>of the total assets between June 30, 2010, and June 30, 2009, and the computed increase in <br/>
<a id="pl.31.9"></a><var>31.9</var>the market value of the total assets over that fiscal year period if the assets had earned <br/>
<a id="pl.31.10"></a><var>31.10</var>a rate of return on assets equal to the annual percentage preretirement interest rate <br/>
<a id="pl.31.11"></a><var>31.11</var>assumption used in the actuarial valuation for July 1, 2009;<br/>
<a id="pl.31.12"></a><var>31.12</var>(iv) 80 percent of the difference between the actual net change in the market value of <br/>
<a id="pl.31.13"></a><var>31.13</var>total assets between June 30, 2011, and June 30, 2010, and the computed increase in the <br/>
<a id="pl.31.14"></a><var>31.14</var>market value of total assets over that fiscal year period if the assets had earned a rate of <br/>
<a id="pl.31.15"></a><var>31.15</var>return on assets equal to the annual percentage preretirement interest rate assumption used <br/>
<a id="pl.31.16"></a><var>31.16</var>in the actuarial valuation for July 1, 2010; and<br/>
<a id="pl.31.17"></a><var>31.17</var>(v) if applicable, 40 percent of the difference between the actual net change in the <br/>
<a id="pl.31.18"></a><var>31.18</var>market value of the Minnesota postretirement investment fund between June 30, 2009, <br/>
<a id="pl.31.19"></a><var>31.19</var>and June 30, 2008, and the computed increase in the market value of assets over that fiscal <br/>
<a id="pl.31.20"></a><var>31.20</var>year period if the assets had increased at 8.5 percent annually.<br/>
<a id="pl.31.21"></a><var>31.21</var>(4) For the July 1, 2012, actuarial valuation, the market value of all assets as of <br/>
<a id="pl.31.22"></a><var>31.22</var>June 30, 2012, reduced by:<br/>
<a id="pl.31.23"></a><var>31.23</var>(i) 20 percent of the difference between the actual net change in the market value of <br/>
<a id="pl.31.24"></a><var>31.24</var>assets other than the Minnesota postretirement investment fund between June 30, 2009, <br/>
<a id="pl.31.25"></a><var>31.25</var>and June 30, 2008, and the computed increase in the market value of assets other than the <br/>
<a id="pl.31.26"></a><var>31.26</var>Minnesota postretirement investment fund over that fiscal year period if the assets had <br/>
<a id="pl.31.27"></a><var>31.27</var>earned a rate of return on assets equal to the annual percentage preretirement interest rate <br/>
<a id="pl.31.28"></a><var>31.28</var>assumption used in the actuarial valuation for July 1, 2008;<br/>
<a id="pl.31.29"></a><var>31.29</var>(ii) 40 percent of the difference between the actual net change in the market value of <br/>
<a id="pl.31.30"></a><var>31.30</var>total assets between June 30, 2010, and June 30, 2009, and the computed increase in the <br/>
<a id="pl.31.31"></a><var>31.31</var>market value of total assets over that fiscal year period if the assets had earned a rate of <br/>
<a id="pl.31.32"></a><var>31.32</var>return on assets equal to the annual percentage preretirement interest rate assumption used <br/>
<a id="pl.31.33"></a><var>31.33</var>in the actuarial valuation for July 1, 2009;<br/>
<a id="pl.31.34"></a><var>31.34</var>(iii) 60 percent of the difference between the actual net change in the market value <br/>
<a id="pl.31.35"></a><var>31.35</var>of total assets between June 30, 2011, and June 30, 2010, and the computed increase in the <br/>
<a id="pl.31.36"></a><var>31.36</var>market value of total assets over that fiscal year period if the assets had earned a rate of <br/>
<a id="pl.32.1"></a><var>32.1</var>return on assets equal to the annual percentage preretirement interest rate assumption used <br/>
<a id="pl.32.2"></a><var>32.2</var>in the actuarial valuation for July 1, 2010;<br/>
<a id="pl.32.3"></a><var>32.3</var>(iv) 80 percent of the difference between the actual net change in the market value of <br/>
<a id="pl.32.4"></a><var>32.4</var>total assets between June 30, 2012, and June 30, 2011, and the computed increase in the <br/>
<a id="pl.32.5"></a><var>32.5</var>market value of total assets over that fiscal year period if the assets had earned a rate of <br/>
<a id="pl.32.6"></a><var>32.6</var>return on assets equal to the annual percentage preretirement interest rate assumption used <br/>
<a id="pl.32.7"></a><var>32.7</var>in the actuarial valuation for July 1, 2011; and<br/>
<a id="pl.32.8"></a><var>32.8</var>(v) if applicable, 20 percent of the difference between the actual net change in the <br/>
<a id="pl.32.9"></a><var>32.9</var>market value of the Minnesota postretirement investment fund between June 30, 2009, <br/>
<a id="pl.32.10"></a><var>32.10</var>and June 30, 2008, and the computed increase in the market value of assets over that fiscal <br/>
<a id="pl.32.11"></a><var>32.11</var>year period if the assets had increased at 8.5 percent annually.<br/>
<a id="pl.32.12"></a><var>32.12</var>(5) For the July 1, 2013, and following actuarial valuations, the market value of all <br/>
<a id="pl.32.13"></a><var>32.13</var>assets as of the preceding June 30, reduced by:<br/>
<a id="pl.32.14"></a><var>32.14</var>(i) 20 percent of the difference between the actual net change in the market value <br/>
<a id="pl.32.15"></a><var>32.15</var>of total assets between the June 30 that occurred three years earlier and the June 30 that <br/>
<a id="pl.32.16"></a><var>32.16</var>occurred four years earlier and the computed increase in the market value of total assets <br/>
<a id="pl.32.17"></a><var>32.17</var>over that fiscal year period if the assets had earned a rate of return on assets equal to the <br/>
<a id="pl.32.18"></a><var>32.18</var>annual percentage preretirement interest rate assumption used in the actuarial valuation <br/>
<a id="pl.32.19"></a><var>32.19</var>for the July 1 that occurred four years earlier;<br/>
<a id="pl.32.20"></a><var>32.20</var>(ii) 40 percent of the difference between the actual net change in the market value <br/>
<a id="pl.32.21"></a><var>32.21</var>of total assets between the June 30 that occurred two years earlier and the June 30 that <br/>
<a id="pl.32.22"></a><var>32.22</var>occurred three years earlier and the computed increase in the market value of total assets <br/>
<a id="pl.32.23"></a><var>32.23</var>over that fiscal year period if the assets had earned a rate of return on assets equal to the <br/>
<a id="pl.32.24"></a><var>32.24</var>annual percentage preretirement interest rate assumption used in the actuarial valuation <br/>
<a id="pl.32.25"></a><var>32.25</var>for the July 1 that occurred three years earlier;<br/>
<a id="pl.32.26"></a><var>32.26</var>(iii) 60 percent of the difference between the actual net change in the market value <br/>
<a id="pl.32.27"></a><var>32.27</var>of total assets between the June 30 that occurred one year earlier and the June 30 that <br/>
<a id="pl.32.28"></a><var>32.28</var>occurred two years earlier and the computed increase in the market value of total assets <br/>
<a id="pl.32.29"></a><var>32.29</var>over that fiscal year period if the assets had earned a rate of return on assets equal to the <br/>
<a id="pl.32.30"></a><var>32.30</var>annual percentage preretirement interest rate assumption used in the actuarial valuation <br/>
<a id="pl.32.31"></a><var>32.31</var>for the July 1 that occurred two years earlier; and<br/>
<a id="pl.32.32"></a><var>32.32</var>(iv) 80 percent of the difference between the actual net change in the market value <br/>
<a id="pl.32.33"></a><var>32.33</var>of total assets between the most recent June 30 and the June 30 that occurred one year <br/>
<a id="pl.32.34"></a><var>32.34</var>earlier and the computed increase in the market value of total assets over that fiscal year <br/>
<a id="pl.32.35"></a><var>32.35</var>period if the assets had earned a rate of return on assets equal to the annual percentage <br/>
<a id="pl.33.1"></a><var>33.1</var>preretirement interest rate assumption used in the actuarial valuation for the July 1 that <br/>
<a id="pl.33.2"></a><var>33.2</var>occurred one year earlier.<br/>
<a id="pl.33.3"></a><var>33.3</var>    (g) "Unfunded actuarial accrued liability" means the total current and expected <br/>
<a id="pl.33.4"></a><var>33.4</var>future benefit obligations, reduced by the sum of the actuarial value of assets and the <br/>
<a id="pl.33.5"></a><var>33.5</var>present value of future normal costs.<br/>
<a id="pl.33.6"></a><var>33.6</var>    (h) "Pension benefit obligation" means the actuarial present value of credited <br/>
<a id="pl.33.7"></a><var>33.7</var>projected benefits, determined as the actuarial present value of benefits estimated to be <br/>
<a id="pl.33.8"></a><var>33.8</var>payable in the future as a result of employee service attributing an equal benefit amount, <br/>
<a id="pl.33.9"></a><var>33.9</var>including the effect of projected salary increases and any step rate benefit accrual rate <br/>
<a id="pl.33.10"></a><var>33.10</var>differences, to each year of credited and expected future employee service.<br/>
<br/>
<a id="bill.1.71.0"></a><a id="pl.33.11"></a><var>33.11</var>    Sec. 71. Minnesota Statutes 2008, section 356.215, subdivision 11, is amended to read:<br/>
<a id="pl.33.12"></a><var>33.12</var>    Subd. 11. <b>Amortization contributions.</b> (a) In addition to the exhibit indicating <br/>
<a id="pl.33.13"></a><var>33.13</var>the level normal cost, the actuarial valuation of the retirement plan must contain an <br/>
<a id="pl.33.14"></a><var>33.14</var>exhibit for financial reporting purposes indicating the additional annual contribution <br/>
<a id="pl.33.15"></a><var>33.15</var>sufficient to amortize the unfunded actuarial accrued liability and must contain an exhibit <br/>
<a id="pl.33.16"></a><var>33.16</var>for contribution determination purposes indicating the additional contribution sufficient <br/>
<a id="pl.33.17"></a><var>33.17</var>to amortize the unfunded actuarial accrued liability. For the retirement plans listed in <br/>
<a id="pl.33.18"></a><var>33.18</var>subdivision 8, paragraph (c), the additional contribution must be calculated on a level <br/>
<a id="pl.33.19"></a><var>33.19</var>percentage of covered payroll basis by the established date for full funding in effect when <br/>
<a id="pl.33.20"></a><var>33.20</var>the valuation is prepared, assuming annual payroll growth at the applicable percentage <br/>
<a id="pl.33.21"></a><var>33.21</var>rate set forth in subdivision 8, paragraph (c). For all other retirement plans, the additional <br/>
<a id="pl.33.22"></a><var>33.22</var>annual contribution must be calculated on a level annual dollar amount basis. <br/>
<a id="pl.33.23"></a><var>33.23</var>    (b) For any retirement plan other than the Minneapolis Employees Retirement Fund, <br/>
<a id="pl.33.24"></a><var>33.24</var>the general employees retirement plan of the Public Employees Retirement Association, <br/>
<a id="pl.33.25"></a><var>33.25</var>and the St. Paul Teachers Retirement Fund Association, if there has not been a change in <br/>
<a id="pl.33.26"></a><var>33.26</var>the actuarial assumptions used for calculating the actuarial accrued liability of the fund, a <br/>
<a id="pl.33.27"></a><var>33.27</var>change in the benefit plan governing annuities and benefits payable from the fund, a <br/>
<a id="pl.33.28"></a><var>33.28</var>change in the actuarial cost method used in calculating the actuarial accrued liability of all <br/>
<a id="pl.33.29"></a><var>33.29</var>or a portion of the fund, or a combination of the three, which change or changes by itself <br/>
<a id="pl.33.30"></a><var>33.30</var>or by themselves without inclusion of any other items of increase or decrease produce a <br/>
<a id="pl.33.31"></a><var>33.31</var>net increase in the unfunded actuarial accrued liability of the fund, the established date for <br/>
<a id="pl.33.32"></a><var>33.32</var>full funding is the first actuarial valuation date occurring after June 1, 2020.<br/>
<a id="pl.33.33"></a><var>33.33</var>    (c) For any retirement plan other than the Minneapolis Employees Retirement <br/>
<a id="pl.33.34"></a><var>33.34</var>Fund and the general employees retirement plan of the Public Employees Retirement <br/>
<a id="pl.33.35"></a><var>33.35</var>Association, if there has been a change in any or all of the actuarial assumptions used <br/>
<a id="pl.34.1"></a><var>34.1</var>for calculating the actuarial accrued liability of the fund, a change in the benefit plan <br/>
<a id="pl.34.2"></a><var>34.2</var>governing annuities and benefits payable from the fund, a change in the actuarial cost <br/>
<a id="pl.34.3"></a><var>34.3</var>method used in calculating the actuarial accrued liability of all or a portion of the fund, <br/>
<a id="pl.34.4"></a><var>34.4</var>or a combination of the three, and the change or changes, by itself or by themselves and <br/>
<a id="pl.34.5"></a><var>34.5</var>without inclusion of any other items of increase or decrease, produce a net increase in the <br/>
<a id="pl.34.6"></a><var>34.6</var>unfunded actuarial accrued liability in the fund, the established date for full funding must <br/>
<a id="pl.34.7"></a><var>34.7</var>be determined using the following procedure:<br/>
<a id="pl.34.8"></a><var>34.8</var>    (i) the unfunded actuarial accrued liability of the fund must be determined in <br/>
<a id="pl.34.9"></a><var>34.9</var>accordance with the plan provisions governing annuities and retirement benefits and the <br/>
<a id="pl.34.10"></a><var>34.10</var>actuarial assumptions in effect before an applicable change;<br/>
<a id="pl.34.11"></a><var>34.11</var>    (ii) the level annual dollar contribution or level percentage, whichever is applicable, <br/>
<a id="pl.34.12"></a><var>34.12</var>needed to amortize the unfunded actuarial accrued liability amount determined under item <br/>
<a id="pl.34.13"></a><var>34.13</var>(i) by the established date for full funding in effect before the change must be calculated <br/>
<a id="pl.34.14"></a><var>34.14</var>using the interest assumption specified in subdivision 8 in effect before the change;<br/>
<a id="pl.34.15"></a><var>34.15</var>    (iii) the unfunded actuarial accrued liability of the fund must be determined in <br/>
<a id="pl.34.16"></a><var>34.16</var>accordance with any new plan provisions governing annuities and benefits payable from <br/>
<a id="pl.34.17"></a><var>34.17</var>the fund and any new actuarial assumptions and the remaining plan provisions governing <br/>
<a id="pl.34.18"></a><var>34.18</var>annuities and benefits payable from the fund and actuarial assumptions in effect before <br/>
<a id="pl.34.19"></a><var>34.19</var>the change;<br/>
<a id="pl.34.20"></a><var>34.20</var>    (iv) the level annual dollar contribution or level percentage, whichever is applicable, <br/>
<a id="pl.34.21"></a><var>34.21</var>needed to amortize the difference between the unfunded actuarial accrued liability amount <br/>
<a id="pl.34.22"></a><var>34.22</var>calculated under item (i) and the unfunded actuarial accrued liability amount calculated <br/>
<a id="pl.34.23"></a><var>34.23</var>under item (iii) over a period of 30 years from the end of the plan year in which the <br/>
<a id="pl.34.24"></a><var>34.24</var>applicable change is effective must be calculated using the applicable interest assumption <br/>
<a id="pl.34.25"></a><var>34.25</var>specified in subdivision 8 in effect after any applicable change;<br/>
<a id="pl.34.26"></a><var>34.26</var>    (v) the level annual dollar or level percentage amortization contribution under item <br/>
<a id="pl.34.27"></a><var>34.27</var>(iv) must be added to the level annual dollar amortization contribution or level percentage <br/>
<a id="pl.34.28"></a><var>34.28</var>calculated under item (ii);<br/>
<a id="pl.34.29"></a><var>34.29</var>    (vi) the period in which the unfunded actuarial accrued liability amount determined <br/>
<a id="pl.34.30"></a><var>34.30</var>in item (iii) is amortized by the total level annual dollar or level percentage amortization <br/>
<a id="pl.34.31"></a><var>34.31</var>contribution computed under item (v) must be calculated using the interest assumption <br/>
<a id="pl.34.32"></a><var>34.32</var>specified in subdivision 8 in effect after any applicable change, rounded to the nearest <br/>
<a id="pl.34.33"></a><var>34.33</var>integral number of years, but not to exceed 30 years from the end of the plan year in <br/>
<a id="pl.34.34"></a><var>34.34</var>which the determination of the established date for full funding using the procedure set <br/>
<a id="pl.34.35"></a><var>34.35</var>forth in this clause is made and not to be less than the period of years beginning in the <br/>
<a id="pl.34.36"></a><var>34.36</var>plan year in which the determination of the established date for full funding using the <br/>
<a id="pl.35.1"></a><var>35.1</var>procedure set forth in this clause is made and ending by the date for full funding in effect <br/>
<a id="pl.35.2"></a><var>35.2</var>before the change; and<br/>
<a id="pl.35.3"></a><var>35.3</var>    (vii) the period determined under item (vi) must be added to the date as of which <br/>
<a id="pl.35.4"></a><var>35.4</var>the actuarial valuation was prepared and the date obtained is the new established date <br/>
<a id="pl.35.5"></a><var>35.5</var>for full funding.<br/>
<a id="pl.35.6"></a><var>35.6</var>    (d) For the Minneapolis Employees Retirement Fund, the established date for full <br/>
<a id="pl.35.7"></a><var>35.7</var>funding is June 30, 2020.<br/>
<a id="pl.35.8"></a><var>35.8</var>    (e) For the general employees retirement plan of the Public Employees Retirement <br/>
<a id="pl.35.9"></a><var>35.9</var>Association, the established date for full funding is June 30, 2031.<br/>
<a id="pl.35.10"></a><var>35.10</var>    (f) For the Teachers Retirement Association, the established date for full funding is <br/>
<a id="pl.35.11"></a><var>35.11</var>June 30, 2037.<br/>
<a id="pl.35.12"></a><var>35.12</var>    (g) For the correctional state employees retirement plan of the Minnesota State <br/>
<a id="pl.35.13"></a><var>35.13</var>Retirement System, the established date for full funding is June 30, 2038.<br/>
<a id="pl.35.14"></a><var>35.14</var>    (h) For the judges retirement plan, the established date for full funding is June <br/>
<a id="pl.35.15"></a><var>35.15</var>30, 2038.<br/>
<a id="pl.35.16"></a><var>35.16</var>    (i) For the public employees police and fire retirement plan, the established date <br/>
<a id="pl.35.17"></a><var>35.17</var>for full funding is June 30, 2038.<br/>
<a id="pl.35.18"></a><var>35.18</var>    (j) For the St. Paul Teachers Retirement Fund Association, the established date for <br/>
<a id="pl.35.19"></a><var>35.19</var>full funding is June 30 of the 25th year from the valuation date. In addition to other <br/>
<a id="pl.35.20"></a><var>35.20</var>requirements of this chapter, the annual actuarial valuation shall contain an exhibit <br/>
<a id="pl.35.21"></a><var>35.21</var>indicating the funded ratio and the deficiency or sufficiency in annual contributions when <br/>
<a id="pl.35.22"></a><var>35.22</var>comparing liabilities to the market value of the assets of the fund as of the close of the <br/>
<a id="pl.35.23"></a><var>35.23</var>most recent fiscal year.<br/>
<a id="pl.35.24"></a><var>35.24</var>    (k) For the retirement plans for which the annual actuarial valuation indicates an <br/>
<a id="pl.35.25"></a><var>35.25</var>excess of valuation assets over the actuarial accrued liability, the valuation assets in <br/>
<a id="pl.35.26"></a><var>35.26</var>excess of the actuarial accrued liability must be recognized as a reduction in the current <br/>
<a id="pl.35.27"></a><var>35.27</var>contribution requirements by an amount equal to the amortization of the excess expressed <br/>
<a id="pl.35.28"></a><var>35.28</var>as a level percentage of pay over a 30-year period beginning anew with each annual <br/>
<a id="pl.35.29"></a><var>35.29</var>actuarial valuation of the plan.<br/>
<a id="pl.35.30"></a><var>35.30</var>    (l) In addition to calculating the unfunded actuarial accrued liability of the retirement <br/>
<a id="pl.35.31"></a><var>35.31</var>plan for financial reporting purposes under paragraphs (a) to (j), the actuarial valuation <br/>
<a id="pl.35.32"></a><var>35.32</var>of the retirement plan must also include a calculation of the unfunded actuarial accrued <br/>
<a id="pl.35.33"></a><var>35.33</var>liability of the retirement plan for purposes of determining the amortization contribution <br/>
<a id="pl.35.34"></a><var>35.34</var>sufficient to amortize the unfunded actuarial liability of the Minnesota Post Retirement <br/>
<a id="pl.35.35"></a><var>35.35</var>Investment Fund. For this exhibit, the calculation must be the unfunded actuarial accrued <br/>
<a id="pl.35.36"></a><var>35.36</var>liability net of the postretirement adjustment liability funded from the investment <br/>
<a id="pl.36.1"></a><var>36.1</var>performance of the Minnesota Post Retirement Investment Fund or the retirement benefit <br/>
<a id="pl.36.2"></a><var>36.2</var>fund.<br/>
<br/>
<a id="bill.1.72.0"></a><a id="pl.36.3"></a><var>36.3</var>    Sec. 72. Minnesota Statutes 2008, section 356.351, subdivision 2, is amended to read:<br/>
<a id="pl.36.4"></a><var>36.4</var>    Subd. 2. <b>Incentive.</b> (a) For an employee eligible under subdivision 1, if approved <br/>
<a id="pl.36.5"></a><var>36.5</var>under paragraph (b), the employer may provide an amount up to $17,000, to an employee <br/>
<a id="pl.36.6"></a><var>36.6</var>who terminates service, to be used: <br/>
<a id="pl.36.7"></a><var>36.7</var>    (1) unless the appointing authority has designated the use under clause (2) or the use <br/>
<a id="pl.36.8"></a><var>36.8</var>under clause (3) for the initial retirement incentive applicable to that employing entity <br/>
<a id="pl.36.9"></a><var>36.9</var>under Laws 2007, chapter 134, after May 26, 2007, for deposit in the employee's account <br/>
<a id="pl.36.10"></a><var>36.10</var>in the health care savings plan established by section 
         <statute_ref>352.98</statute_ref>; <br/>
<a id="pl.36.11"></a><var>36.11</var>    (2) notwithstanding section 
         <statute_ref>352.01, subdivision 11</statute_ref>, or 
         <statute_ref>354.05, subdivision 13</statute_ref>, <br/>
<a id="pl.36.12"></a><var>36.12</var>whichever applies, if the appointing authority has designated the use under this clause <br/>
<a id="pl.36.13"></a><var>36.13</var>for the initial retirement incentive applicable to that employing entity under Laws 2007, <br/>
<a id="pl.36.14"></a><var>36.14</var>chapter 134, after May 26, 2007, for purchase of service credit for unperformed service <br/>
<a id="pl.36.15"></a><var>36.15</var>sufficient to enable the employee to retire under section 
         <statute_ref>352.116, subdivision 1</statute_ref>, paragraph <br/>
<a id="pl.36.16"></a><var>36.16</var>(b); 
         <statute_ref>353.30</statute_ref>; 
         <statute_ref>354.44, subdivision 6</statute_ref>, paragraph (b), or 
         <statute_ref>354A.31, subdivision 6</statute_ref>, paragraph <br/>
<a id="pl.36.17"></a><var>36.17</var>(b), whichever applies; or <br/>
<a id="pl.36.18"></a><var>36.18</var>    (3) if the appointing authority has designated the use under this clause for the initial <br/>
<a id="pl.36.19"></a><var>36.19</var>retirement incentive applicable to the employing entity under Laws 2007, chapter 134, <br/>
<a id="pl.36.20"></a><var>36.20</var>after May 26, 2007, for purchase of a lifetime annuity or an annuity for a specific number <br/>
<a id="pl.36.21"></a><var>36.21</var>of years from the applicable retirement plan to provide additional benefits, as provided in <br/>
<a id="pl.36.22"></a><var>36.22</var>paragraph (d). <br/>
<a id="pl.36.23"></a><var>36.23</var>    (b) Approval to provide the incentive must be obtained from the commissioner <br/>
<a id="pl.36.24"></a><var>36.24</var>of finance if the eligible employee is a state employee and must be obtained from the <br/>
<a id="pl.36.25"></a><var>36.25</var>applicable governing board with respect to any other employing entity. An employee is <br/>
<a id="pl.36.26"></a><var>36.26</var>eligible for the payment under paragraph (a), clause (2), if the employee uses money from <br/>
<a id="pl.36.27"></a><var>36.27</var>a deferred compensation account that, combined with the payment under paragraph (a), <br/>
<a id="pl.36.28"></a><var>36.28</var>clause (2), would be sufficient to purchase enough service credit to qualify for retirement <br/>
<a id="pl.36.29"></a><var>36.29</var>under section 
         <statute_ref>352.116, subdivision 1</statute_ref>, paragraph (b); 
         <statute_ref>353.30, subdivision 1a</statute_ref>; 
         <statute_ref>354.44, <br/>
<a id="pl.36.30"></a><var>36.30</var>subdivision 6
         </statute_ref>, paragraph (b), or 
         <statute_ref>354A.31, subdivision 6</statute_ref>, paragraph (b), whichever applies. <br/>
<a id="pl.36.31"></a><var>36.31</var>    (c) The cost to purchase service credit under paragraph (a), clause (2), must be <br/>
<a id="pl.36.32"></a><var>36.32</var>made in accordance with section 
         <statute_ref>356.551</statute_ref>.<br/>
<a id="pl.36.33"></a><var>36.33</var>    (d) The annuity purchase under paragraph (a), clause (3), must be made using <br/>
<a id="pl.36.34"></a><var>36.34</var>annuity factors, as determined by the actuary retained under section 356.214, derived from <br/>
<a id="pl.36.35"></a><var>36.35</var>the applicable factors used by the applicable retirement plan to transfer amounts to the <br/>
<a id="pl.37.1"></a><var>37.1</var>Minnesota postretirement investment fund and to calculate optional annuity forms. The <br/>
<a id="pl.37.2"></a><var>37.2</var>purchased annuity must be the actuarial equivalent of the incentive amount.<br/>
<br/>
<a id="bill.1.73.0"></a><a id="pl.37.3"></a><var>37.3</var>    Sec. 73. <b>[356.415] POSTRETIREMENT ADJUSTMENTS; STATEWIDE </b><br/>
<a id="pl.37.4"></a><var>37.4</var><b>RETIREMENT PLANS.</b><br/>
<a id="pl.37.5"></a><var>37.5</var>    Subdivision 1. <b>Annual postretirement adjustments.</b> (a) Retirement annuity, <br/>
<a id="pl.37.6"></a><var>37.6</var>disability benefit, or survivor benefit recipients of a covered retirement plan are entitled to <br/>
<a id="pl.37.7"></a><var>37.7</var>a postretirement adjustment annually on January 1, as follows:<br/>
<a id="pl.37.8"></a><var>37.8</var>(1) a postretirement increase of 2.5 percent must be applied each year, effective <br/>
<a id="pl.37.9"></a><var>37.9</var>January 1, to the monthly annuity or benefit of each annuitant or benefit recipient who has <br/>
<a id="pl.37.10"></a><var>37.10</var>been receiving an annuity or a benefit for at least 12 full months prior to the January 1 <br/>
<a id="pl.37.11"></a><var>37.11</var>increase; and<br/>
<a id="pl.37.12"></a><var>37.12</var>(2) for each annuitant or benefit recipient who has been receiving an annuity or a <br/>
<a id="pl.37.13"></a><var>37.13</var>benefit for at least one full month, an annual postretirement increase of 1/12 of 2.5 percent <br/>
<a id="pl.37.14"></a><var>37.14</var>for each month the person has been receiving an annuity or benefit must be applied, <br/>
<a id="pl.37.15"></a><var>37.15</var>effective January 1 following the year in which the person has been retired for less than <br/>
<a id="pl.37.16"></a><var>37.16</var>12 months.<br/>
<a id="pl.37.17"></a><var>37.17</var>(b) The increases provided by this section commence on January 1, 2010.<br/>
<a id="pl.37.18"></a><var>37.18</var>(c) An increase in annuity or benefit payments under this section must be made <br/>
<a id="pl.37.19"></a><var>37.19</var>automatically unless written notice is filed by the annuitant or benefit recipient with the <br/>
<a id="pl.37.20"></a><var>37.20</var>executive director of the covered retirement plan requesting that the increase not be made.<br/>
<a id="pl.37.21"></a><var>37.21</var>(d) The retirement annuity payable to a person who retires before becoming eligible <br/>
<a id="pl.37.22"></a><var>37.22</var>for Social Security benefits and who has elected the optional payment as provided in <br/>
<a id="pl.37.23"></a><var>37.23</var>section 353.29, subdivision 6, or 354.35 must be treated as the sum of a period certain <br/>
<a id="pl.37.24"></a><var>37.24</var>retirement annuity and a life retirement annuity for the purposes of any postretirement <br/>
<a id="pl.37.25"></a><var>37.25</var>adjustment. The period certain retirement annuity plus the life retirement annuity must be <br/>
<a id="pl.37.26"></a><var>37.26</var>the annuity amount payable until age 62 for section 353.29, subdivision 6, or age 62, 65, <br/>
<a id="pl.37.27"></a><var>37.27</var>or normal retirement age, as selected by the member at retirement, for an annuity amount <br/>
<a id="pl.37.28"></a><var>37.28</var>payable under section 354.35. A postretirement adjustment granted on the period certain <br/>
<a id="pl.37.29"></a><var>37.29</var>retirement annuity must terminate when the period certain retirement annuity terminates.<br/>
<a id="pl.37.30"></a><var>37.30</var>    Subd. 2. <b>Covered retirement plans.</b> The provisions of this section apply to the <br/>
<a id="pl.37.31"></a><var>37.31</var>following retirement plans:<br/>
<a id="pl.37.32"></a><var>37.32</var>(1) the legislators retirement plan established under chapter 3A;<br/>
<a id="pl.37.33"></a><var>37.33</var>(2) the correctional state employees retirement plan of the Minnesota State <br/>
<a id="pl.37.34"></a><var>37.34</var>Retirement System established under chapter 352;<br/>
<a id="pl.38.1"></a><var>38.1</var>(3) the general state employees retirement plan of the Minnesota State Retirement <br/>
<a id="pl.38.2"></a><var>38.2</var>System established under chapter 352;<br/>
<a id="pl.38.3"></a><var>38.3</var>(4) the State Patrol retirement plan established under chapter 352B;<br/>
<a id="pl.38.4"></a><var>38.4</var>(5) the elective state officers retirement plan established under chapter 352C;<br/>
<a id="pl.38.5"></a><var>38.5</var>(6) the general employees retirement plan of the Public Employees Retirement <br/>
<a id="pl.38.6"></a><var>38.6</var>Association established under chapter 353;<br/>
<a id="pl.38.7"></a><var>38.7</var>(7) the public employees police and fire retirement plan of the Public Employees <br/>
<a id="pl.38.8"></a><var>38.8</var>Retirement Association established under chapter 353;<br/>
<a id="pl.38.9"></a><var>38.9</var>(8) the local government correctional employees retirement plan of the Public <br/>
<a id="pl.38.10"></a><var>38.10</var>Employees Retirement Association established under chapter 353E;<br/>
<a id="pl.38.11"></a><var>38.11</var>(9) the teachers retirement plan established under chapter 354; and<br/>
<a id="pl.38.12"></a><var>38.12</var>(10) the judges retirement plan established under chapter 490.<br/>
<br/>
<a id="bill.1.74.0"></a><a id="pl.38.13"></a><var>38.13</var>    Sec. 74. Minnesota Statutes 2008, section 490.123, subdivision 1, is amended to read:<br/>
<a id="pl.38.14"></a><var>38.14</var>    Subdivision 1. <b>Fund creation; revenue and authorized disbursements.</b> (a) There <br/>
<a id="pl.38.15"></a><var>38.15</var>is created a special fund to be known as the "judges' retirement fund."<br/>
<a id="pl.38.16"></a><var>38.16</var>    (b) The judges' retirement fund must be credited with all contributions; all interest, <br/>
<a id="pl.38.17"></a><var>38.17</var>dividends, and other investment proceeds; and all other income authorized by this chapter <br/>
<a id="pl.38.18"></a><var>38.18</var>or other applicable law.<br/>
<a id="pl.38.19"></a><var>38.19</var>    (c) From this fund there are appropriated the payments authorized by this chapter, in <br/>
<a id="pl.38.20"></a><var>38.20</var>the amounts and at the times provided, including the necessary and reasonable expenses of <br/>
<a id="pl.38.21"></a><var>38.21</var>the Minnesota State Retirement System in administering the fund and the transfers to the <br/>
<a id="pl.38.22"></a><var>38.22</var>Minnesota postretirement investment fund.<br/>
<br/>
<a id="bill.1.75.0"></a><a id="pl.38.23"></a><var>38.23</var>    Sec. 75. Minnesota Statutes 2008, section 490.123, subdivision 3, is amended to read:<br/>
<a id="pl.38.24"></a><var>38.24</var>    Subd. 3. <b>Investment.</b> (a) The executive director of the Minnesota State Retirement <br/>
<a id="pl.38.25"></a><var>38.25</var>System shall, from time to time, certify to the State Board of Investment such portions <br/>
<a id="pl.38.26"></a><var>38.26</var>of the judges' retirement fund as in the director's judgment may not be required for <br/>
<a id="pl.38.27"></a><var>38.27</var>immediate use.<br/>
<a id="pl.38.28"></a><var>38.28</var>    (b) Assets from the judges' retirement fund must be transferred to the Minnesota <br/>
<a id="pl.38.29"></a><var>38.29</var>postretirement investment fund for retirement and disability benefits as provided in <br/>
<a id="pl.38.30"></a><var>38.30</var>sections
<statute_ref> 11A.18</statute_ref> and 
<statute_ref>352.119</statute_ref>.<br/>
<a id="pl.38.31"></a><var>38.31</var>    (c) (b) The State Board of Investment shall thereupon invest and reinvest sums so <br/>
<a id="pl.38.32"></a><var>38.32</var>transferred, or certified, in such securities as are duly authorized legal investments for such <br/>
<a id="pl.38.33"></a><var>38.33</var>purposes under section 
         <statute_ref>11A.24</statute_ref> in compliance with sections 
         <statute_ref>356A.04</statute_ref> and 
         <statute_ref>356A.06</statute_ref>.<br/>
<br/>
<a id="bill.1.76.0"></a><a id="pl.39.1"></a><var>39.1</var>    Sec. 76. Minnesota Statutes 2008, section 490.124, is amended by adding a subdivision <br/>
<a id="pl.39.2"></a><var>39.2</var>to read:<br/>
<a id="pl.39.3"></a><var>39.3</var>    Subd. 14. <b>Postretirement adjustment eligibility.</b> A retirement annuity under <br/>
<a id="pl.39.4"></a><var>39.4</var>subdivision 1, 3, or 5, a disability benefit under subdivision 4, and a survivor's annuity <br/>
<a id="pl.39.5"></a><var>39.5</var>under subdivision 9 or 11 are eligible for postretirement adjustments under section <br/>
<a id="pl.39.6"></a><var>39.6</var>356.415.<br/>
<br/>
<a id="bill.1.77.0"></a><a id="pl.39.7"></a><var>39.7</var>    Sec. 77. <b> REPEALER.</b><br/>
<a id="pl.39.8"></a><var>39.8</var>Minnesota Statutes 2008, sections 11A.041; 11A.18; 11A.181; 352.119, subdivisions <br/>
<a id="pl.39.9"></a><var>39.9</var>2, 3, and 4; 352B.26, subdivisions 1 and 3; 353.271; 353A.02, subdivision 20; 353A.09, <br/>
<a id="pl.39.10"></a><var>39.10</var>subdivisions 2 and 3; 354.05, subdivision 26; 354.55, subdivision 14; 354.63; 356.41; <br/>
<a id="pl.39.11"></a><var>39.11</var>356.431, subdivision 2; 422A.01, subdivision 13; 422A.06, subdivision 4; and 490.123, <br/>
<a id="pl.39.12"></a><var>39.12</var>subdivisions 1c and 1e, are repealed.<br/>
<br/>
<a id="bill.1.78.0"></a><a id="pl.39.13"></a><var>39.13</var>    Sec. 78. <b>EFFECTIVE DATE.</b><br/>
<a id="pl.39.14"></a><var>39.14</var>Sections 1 to 77 are effective July 1, 2009.<br/>
<br/>
<a id="bill.2.0.0"></a>

<a id="bill.2.1.0"></a><a id="pl.39.17"></a><var>39.17</var>    Section 1. Minnesota Statutes 2008, section 43A.34, subdivision 4, is amended to read:<br/>
<a id="pl.39.18"></a><var>39.18</var>    Subd. 4. <b>Officers exempted.</b> Notwithstanding any provision to the contrary, (a) <br/>
<a id="pl.39.19"></a><var>39.19</var>conservation officers and crime bureau officers who were first employed on or after July <br/>
<a id="pl.39.20"></a><var>39.20</var>1, 1973, and who are members of the State Patrol retirement fund by reason of their <br/>
<a id="pl.39.21"></a><var>39.21</var>employment, and members of the Minnesota State Patrol Division and Alcohol and <br/>
<a id="pl.39.22"></a><var>39.22</var>Gambling Enforcement Division of the Department of Public Safety who are members <br/>
<a id="pl.39.23"></a><var>39.23</var>of the State Patrol Retirement Association by reason of their employment, shall may not <br/>
<a id="pl.39.24"></a><var>39.24</var>continue employment after attaining the age of 60 years, except for a fractional portion <br/>
<a id="pl.39.25"></a><var>39.25</var>of one year that will enable the employee to complete the employee's next full year of <br/>
<a id="pl.39.26"></a><var>39.26</var>allowable service as defined pursuant to section 
         <statute_ref>352B.01 352B.011, subdivision 3</statute_ref>; and (b) <br/>
<a id="pl.39.27"></a><var>39.27</var>conservation officers and crime bureau officers who were first employed and are members <br/>
<a id="pl.39.28"></a><var>39.28</var>of the State Patrol retirement fund by reason of their employment before July 1, 1973, <br/>
<a id="pl.39.29"></a><var>39.29</var>shall may not continue employment after attaining the age of 70 years.  <br/>
<a id="pl.39.30"></a><var>39.30</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2009.<br/>
<br/>
<a id="bill.2.2.0"></a><a id="pl.39.31"></a><var>39.31</var>    Sec. 2. Minnesota Statutes 2008, section 299A.465, subdivision 1, is amended to read:<br/>
<a id="pl.40.1"></a><var>40.1</var>    Subdivision 1. <b>Officer or firefighter disabled in line of duty.</b> (a) This subdivision <br/>
<a id="pl.40.2"></a><var>40.2</var>applies to any peace officer or firefighter:<br/>
<a id="pl.40.3"></a><var>40.3</var>    (1) who the Public Employees Retirement Association or the Minnesota State <br/>
<a id="pl.40.4"></a><var>40.4</var>Retirement System determines is eligible to receive a duty disability benefit pursuant to <br/>
<a id="pl.40.5"></a><var>40.5</var>section 
         <statute_ref>353.656</statute_ref> or 352B.10, subdivision 1, respectively; or<br/>
<a id="pl.40.6"></a><var>40.6</var>    (2) who (i) does not qualify to receive disability benefits by operation of the <br/>
<a id="pl.40.7"></a><var>40.7</var>eligibility requirements set forth in section 
         <statute_ref>353.656, subdivision 1</statute_ref>, paragraph (b), (ii) <br/>
<a id="pl.40.8"></a><var>40.8</var>retires pursuant to section 
         <statute_ref>353.651, subdivision 4</statute_ref>, or (iii) is a member of a local police or <br/>
<a id="pl.40.9"></a><var>40.9</var>salaried firefighters relief association and qualifies for a duty disability benefit under the <br/>
<a id="pl.40.10"></a><var>40.10</var>terms of plans of the relief associations, and the peace officer or firefighter described in <br/>
<a id="pl.40.11"></a><var>40.11</var>item (i), (ii), or (iii) has discontinued public service as a peace officer or firefighter as a <br/>
<a id="pl.40.12"></a><var>40.12</var>result of a disabling injury and has been determined, by the Public Employees Retirement <br/>
<a id="pl.40.13"></a><var>40.13</var>Association, to have otherwise met the duty disability criteria set forth in section 
         <statute_ref>353.01</statute_ref>, <br/>
<a id="pl.40.14"></a><var>40.14</var>subdivision 41.<br/>
<a id="pl.40.15"></a><var>40.15</var>    (b) A determination made on behalf of a peace officer or firefighter described in <br/>
<a id="pl.40.16"></a><var>40.16</var>paragraph (a), clause (2), must be at the request of the peace officer or firefighter made for <br/>
<a id="pl.40.17"></a><var>40.17</var>the purposes of this section. Determinations made in accordance with paragraph (a) are <br/>
<a id="pl.40.18"></a><var>40.18</var>binding on the peace officer or firefighter, employer, and state. The determination must <br/>
<a id="pl.40.19"></a><var>40.19</var>be made by the executive director of the Public Employees Retirement Association or <br/>
<a id="pl.40.20"></a><var>40.20</var>by the executive director of the Minnesota State Retirement System, whichever applies, <br/>
<a id="pl.40.21"></a><var>40.21</var>and is not subject to section 
         <statute_ref>356.96, subdivision 2</statute_ref>. Upon making a determination, the <br/>
<a id="pl.40.22"></a><var>40.22</var>executive director shall provide written notice to the peace officer or firefighter and the <br/>
<a id="pl.40.23"></a><var>40.23</var>employer. This notice must include:<br/>
<a id="pl.40.24"></a><var>40.24</var>    (1) a written statement of the reasons for the determination;<br/>
<a id="pl.40.25"></a><var>40.25</var>    (2) a notice that the person may petition for a review of the determination by <br/>
<a id="pl.40.26"></a><var>40.26</var>requesting that a contested case be initiated before the Office of Administrative Hearings, <br/>
<a id="pl.40.27"></a><var>40.27</var>the cost of which must be borne by the peace officer or firefighter and the employer; and<br/>
<a id="pl.40.28"></a><var>40.28</var>    (3) a statement that any person who does not petition for a review within 60 days <br/>
<a id="pl.40.29"></a><var>40.29</var>is precluded from contesting issues determined by the executive director in any other <br/>
<a id="pl.40.30"></a><var>40.30</var>administrative review or court procedure.<br/>
<a id="pl.40.31"></a><var>40.31</var>If, prior to the contested case hearing, additional information is provided to support the <br/>
<a id="pl.40.32"></a><var>40.32</var>claim for duty disability as defined in section 
         <statute_ref>353.01, subdivision 41</statute_ref>, or 352B.011, <br/>
<a id="pl.40.33"></a><var>40.33</var>subdivision 7, whichever applies, the executive director may reverse the determination <br/>
<a id="pl.40.34"></a><var>40.34</var>without the requested hearing. If a hearing is held before the Office of Administrative <br/>
<a id="pl.40.35"></a><var>40.35</var>Hearings, the determination rendered by the judge conducting the fact-finding hearing <br/>
<a id="pl.40.36"></a><var>40.36</var>is a final decision and order under section 
         <statute_ref>14.62</statute_ref>, subdivision 2a, and is binding on the <br/>
<a id="pl.41.1"></a><var>41.1</var>applicable executive director, the peace officer or firefighter, employer, and state. Review <br/>
<a id="pl.41.2"></a><var>41.2</var>of a final determination made by the Office of Administrative Hearings under this section <br/>
<a id="pl.41.3"></a><var>41.3</var>may only be obtained by writ of certiorari to the Minnesota Court of Appeals under <br/>
<a id="pl.41.4"></a><var>41.4</var>sections 
         <statute_ref>14.63</statute_ref> to 
         <statute_ref>14.68</statute_ref>. Only the peace officer or firefighter, employer, and state have <br/>
<a id="pl.41.5"></a><var>41.5</var>standing to participate in a judicial review of the decision of the Office of Administrative <br/>
<a id="pl.41.6"></a><var>41.6</var>Hearings.<br/>
<a id="pl.41.7"></a><var>41.7</var>    (c) The officer's or firefighter's employer shall continue to provide health coverage <br/>
<a id="pl.41.8"></a><var>41.8</var>for:<br/>
<a id="pl.41.9"></a><var>41.9</var>    (1) the officer or firefighter; and<br/>
<a id="pl.41.10"></a><var>41.10</var>    (2) the officer's or firefighter's dependents if the officer or firefighter was receiving <br/>
<a id="pl.41.11"></a><var>41.11</var>dependent coverage at the time of the injury under the employer's group health plan.<br/>
<a id="pl.41.12"></a><var>41.12</var>    (d) The employer is responsible for the continued payment of the employer's <br/>
<a id="pl.41.13"></a><var>41.13</var>contribution for coverage of the officer or firefighter and, if applicable, the officer's <br/>
<a id="pl.41.14"></a><var>41.14</var>or firefighter's dependents. Coverage must continue for the officer or firefighter and, if <br/>
<a id="pl.41.15"></a><var>41.15</var>applicable, the officer's or firefighter's dependents until the officer or firefighter reaches or, <br/>
<a id="pl.41.16"></a><var>41.16</var>if deceased, would have reached the age of 65. However, coverage for dependents does <br/>
<a id="pl.41.17"></a><var>41.17</var>not have to be continued after the person is no longer a dependent.<br/>
<a id="pl.41.18"></a><var>41.18</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment <br/>
<a id="pl.41.19"></a><var>41.19</var>and also applies to any member of the State Patrol retirement plan who was awarded a <br/>
<a id="pl.41.20"></a><var>41.20</var>duty disability benefit on or after July 1, 2008.<br/>
<br/>
<a id="bill.2.3.0"></a><a id="pl.41.21"></a><var>41.21</var>    Sec. 3. Minnesota Statutes 2008, section 352.01, subdivision 2b, is amended to read:<br/>
<a id="pl.41.22"></a><var>41.22</var>    Subd. 2b.  <b>Excluded employees.</b> "State employee" does not include: <br/>
<a id="pl.41.23"></a><var>41.23</var>    (1) students employed by the University of Minnesota, or the state colleges and <br/>
<a id="pl.41.24"></a><var>41.24</var>universities, unless approved for coverage by the Board of Regents of the University of <br/>
<a id="pl.41.25"></a><var>41.25</var>Minnesota or the Board of Trustees of the Minnesota State Colleges and Universities, <br/>
<a id="pl.41.26"></a><var>41.26</var>whichever is applicable; <br/>
<a id="pl.41.27"></a><var>41.27</var>    (2) employees who are eligible for membership in the state Teachers Retirement <br/>
<a id="pl.41.28"></a><var>41.28</var>Association, except employees of the Department of Education who have chosen or may <br/>
<a id="pl.41.29"></a><var>41.29</var>choose to be covered by the general state employees retirement plan of the Minnesota <br/>
<a id="pl.41.30"></a><var>41.30</var>State Retirement System instead of the Teachers Retirement Association; <br/>
<a id="pl.41.31"></a><var>41.31</var>    (3) employees of the University of Minnesota who are excluded from coverage by <br/>
<a id="pl.41.32"></a><var>41.32</var>action of the Board of Regents; <br/>
<a id="pl.41.33"></a><var>41.33</var>    (4) officers and enlisted personnel in the National Guard and the naval militia who <br/>
<a id="pl.41.34"></a><var>41.34</var>are assigned to permanent peacetime duty and who under federal law are or are required to <br/>
<a id="pl.41.35"></a><var>41.35</var>be members of a federal retirement system; <br/>
<a id="pl.42.1"></a><var>42.1</var>    (5) election officers; <br/>
<a id="pl.42.2"></a><var>42.2</var>    (6) persons who are engaged in public work for the state but who are employed <br/>
<a id="pl.42.3"></a><var>42.3</var>by contractors when the performance of the contract is authorized by the legislature or <br/>
<a id="pl.42.4"></a><var>42.4</var>other competent authority; <br/>
<a id="pl.42.5"></a><var>42.5</var>    (7) officers and employees of the senate, or of the house of representatives, or of a <br/>
<a id="pl.42.6"></a><var>42.6</var>legislative committee or commission who are temporarily employed; <br/>
<a id="pl.42.7"></a><var>42.7</var>    (8) receivers, jurors, notaries public, and court employees who are not in the judicial <br/>
<a id="pl.42.8"></a><var>42.8</var>branch as defined in section 
         <statute_ref>43A.02, subdivision 25</statute_ref>, except referees and adjusters <br/>
<a id="pl.42.9"></a><var>42.9</var>employed by the Department of Labor and Industry; <br/>
<a id="pl.42.10"></a><var>42.10</var>    (9) patient and inmate help in state charitable, penal, and correctional institutions <br/>
<a id="pl.42.11"></a><var>42.11</var>including the Minnesota Veterans Home; <br/>
<a id="pl.42.12"></a><var>42.12</var>    (10) persons who are employed for professional services where the service is <br/>
<a id="pl.42.13"></a><var>42.13</var>incidental to their regular professional duties and whose compensation is paid on a per <br/>
<a id="pl.42.14"></a><var>42.14</var>diem basis; <br/>
<a id="pl.42.15"></a><var>42.15</var>    (11) employees of the Sibley House Association; <br/>
<a id="pl.42.16"></a><var>42.16</var>    (12) the members of any state board or commission who serve the state intermittently <br/>
<a id="pl.42.17"></a><var>42.17</var>and are paid on a per diem basis; the secretary, secretary-treasurer, and treasurer of those <br/>
<a id="pl.42.18"></a><var>42.18</var>boards if their compensation is $5,000 or less per year, or, if they are legally prohibited <br/>
<a id="pl.42.19"></a><var>42.19</var>from serving more than three years; and the board of managers of the State Agricultural <br/>
<a id="pl.42.20"></a><var>42.20</var>Society and its treasurer unless the treasurer is also its full-time secretary; <br/>
<a id="pl.42.21"></a><var>42.21</var>    (13) state troopers and persons who are described in section 
         <statute_ref>352B.01, subdivision 2</statute_ref> <br/>
<a id="pl.42.22"></a><var>42.22</var>352B.011, subdivision 10, clauses (2) to (6) (8); <br/>
<a id="pl.42.23"></a><var>42.23</var>    (14) temporary employees of the Minnesota State Fair who are employed on or <br/>
<a id="pl.42.24"></a><var>42.24</var>after July 1 for a period not to extend beyond October 15 of that year; and persons who <br/>
<a id="pl.42.25"></a><var>42.25</var>are employed at any time by the state fair administration for special events held on the <br/>
<a id="pl.42.26"></a><var>42.26</var>fairgrounds; <br/>
<a id="pl.42.27"></a><var>42.27</var>    (15) emergency employees who are in the classified service; except that if an <br/>
<a id="pl.42.28"></a><var>42.28</var>emergency employee, within the same pay period, becomes a provisional or probationary <br/>
<a id="pl.42.29"></a><var>42.29</var>employee on other than a temporary basis, the employee shall must be considered a "state <br/>
<a id="pl.42.30"></a><var>42.30</var>employee" retroactively to the beginning of the pay period; <br/>
<a id="pl.42.31"></a><var>42.31</var>    (16) temporary employees in the classified service, and temporary employees in the <br/>
<a id="pl.42.32"></a><var>42.32</var>unclassified service who are appointed for a definite period of not more than six months <br/>
<a id="pl.42.33"></a><var>42.33</var>and who are employed less than six months in any one-year period; <br/>
<a id="pl.42.34"></a><var>42.34</var>    (17) interns hired for six months or less and trainee employees, except those listed in <br/>
<a id="pl.42.35"></a><var>42.35</var>subdivision 2a, clause (8); <br/>
<a id="pl.43.1"></a><var>43.1</var>    (18) persons whose compensation is paid on a fee basis or as an independent <br/>
<a id="pl.43.2"></a><var>43.2</var>contractor; <br/>
<a id="pl.43.3"></a><var>43.3</var>    (19) state employees who are employed by the Board of Trustees of the Minnesota <br/>
<a id="pl.43.4"></a><var>43.4</var>State Colleges and Universities in unclassified positions enumerated in section 
         <statute_ref>43A.08, <br/>
<a id="pl.43.5"></a><var>43.5</var>subdivision 1
         </statute_ref>, clause (9); <br/>
<a id="pl.43.6"></a><var>43.6</var>    (20) state employees who in any year have credit for 12 months service as teachers <br/>
<a id="pl.43.7"></a><var>43.7</var>in the public schools of the state and as teachers are members of the Teachers Retirement <br/>
<a id="pl.43.8"></a><var>43.8</var>Association or a retirement system in St. Paul, Minneapolis, or Duluth, except for <br/>
<a id="pl.43.9"></a><var>43.9</var>incidental employment as a state employee that is not covered by one of the teacher <br/>
<a id="pl.43.10"></a><var>43.10</var>retirement associations or systems; <br/>
<a id="pl.43.11"></a><var>43.11</var>    (21) employees of the adjutant general who are employed on an unlimited <br/>
<a id="pl.43.12"></a><var>43.12</var>intermittent or temporary basis in the classified or unclassified service for the support of <br/>
<a id="pl.43.13"></a><var>43.13</var>Army and Air National Guard training facilities; <br/>
<a id="pl.43.14"></a><var>43.14</var>    (22) chaplains and nuns who are excluded from coverage under the federal Old <br/>
<a id="pl.43.15"></a><var>43.15</var>Age, Survivors, Disability, and Health Insurance Program for the performance of service <br/>
<a id="pl.43.16"></a><var>43.16</var>as specified in United States Code, title 42, section 410(a)(8)(A), as amended, if no <br/>
<a id="pl.43.17"></a><var>43.17</var>irrevocable election of coverage has been made under section 3121(r) of the Internal <br/>
<a id="pl.43.18"></a><var>43.18</var>Revenue Code of 1986, as amended through December 31, 1992; <br/>
<a id="pl.43.19"></a><var>43.19</var>    (23) examination monitors who are employed by departments, agencies, <br/>
<a id="pl.43.20"></a><var>43.20</var>commissions, and boards to conduct examinations required by law; <br/>
<a id="pl.43.21"></a><var>43.21</var>    (24) persons who are appointed to serve as members of fact-finding commissions or <br/>
<a id="pl.43.22"></a><var>43.22</var>adjustment panels, arbitrators, or labor referees under chapter 179; <br/>
<a id="pl.43.23"></a><var>43.23</var>    (25) temporary employees who are employed for limited periods under any state or <br/>
<a id="pl.43.24"></a><var>43.24</var>federal program for training or rehabilitation, including persons who are employed for <br/>
<a id="pl.43.25"></a><var>43.25</var>limited periods from areas of economic distress, but not including skilled and supervisory <br/>
<a id="pl.43.26"></a><var>43.26</var>personnel and persons having civil service status covered by the system; <br/>
<a id="pl.43.27"></a><var>43.27</var>    (26) full-time students who are employed by the Minnesota Historical Society <br/>
<a id="pl.43.28"></a><var>43.28</var>intermittently during part of the year and full-time during the summer months; <br/>
<a id="pl.43.29"></a><var>43.29</var>    (27) temporary employees who are appointed for not more than six months, of <br/>
<a id="pl.43.30"></a><var>43.30</var>the Metropolitan Council and of any of its statutory boards, if the board members are <br/>
<a id="pl.43.31"></a><var>43.31</var>appointed by the Metropolitan Council; <br/>
<a id="pl.43.32"></a><var>43.32</var>    (28) persons who are employed in positions designated by the Department of <br/>
<a id="pl.43.33"></a><var>43.33</var>Finance as student workers; <br/>
<a id="pl.43.34"></a><var>43.34</var>    (29) members of trades who are employed by the successor to the Metropolitan <br/>
<a id="pl.43.35"></a><var>43.35</var>Waste Control Commission, who have trade union pension plan coverage under a <br/>
<a id="pl.43.36"></a><var>43.36</var>collective bargaining agreement, and who are first employed after June 1, 1977; <br/>
<a id="pl.44.1"></a><var>44.1</var>    (30) off-duty peace officers while employed by the Metropolitan Council; <br/>
<a id="pl.44.2"></a><var>44.2</var>    (31) persons who are employed as full-time police officers by the Metropolitan <br/>
<a id="pl.44.3"></a><var>44.3</var>Council and as police officers are members of the public employees police and fire fund; <br/>
<a id="pl.44.4"></a><var>44.4</var>    (32) persons who are employed as full-time firefighters by the Department of Military <br/>
<a id="pl.44.5"></a><var>44.5</var>Affairs and as firefighters are members of the public employees police and fire fund; <br/>
<a id="pl.44.6"></a><var>44.6</var>    (33) foreign citizens with a work permit of less than three years, or an H-1b/JV visa <br/>
<a id="pl.44.7"></a><var>44.7</var>valid for less than three years of employment, unless notice of extension is supplied which <br/>
<a id="pl.44.8"></a><var>44.8</var>allows them to work for three or more years as of the date the extension is granted, in <br/>
<a id="pl.44.9"></a><var>44.9</var>which case they are eligible for coverage from the date extended; and <br/>
<a id="pl.44.10"></a><var>44.10</var>    (34) persons who are employed by the Board of Trustees of the Minnesota State <br/>
<a id="pl.44.11"></a><var>44.11</var>Colleges and Universities and who elected to remain members of the Public Employees <br/>
<a id="pl.44.12"></a><var>44.12</var>Retirement Association or the Minneapolis Employees Retirement Fund, whichever <br/>
<a id="pl.44.13"></a><var>44.13</var>applies, under Minnesota Statutes 1994, section 
         <statute_ref>136C.75</statute_ref>. <br/>
<a id="pl.44.14"></a><var>44.14</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2009.<br/>
<br/>
<a id="bill.2.4.0"></a><a id="pl.44.15"></a><var>44.15</var>    Sec. 4. Minnesota Statutes 2008, section 352.01, is amended by adding a subdivision <br/>
<a id="pl.44.16"></a><var>44.16</var>to read:<br/>
<a id="pl.44.17"></a><var>44.17</var>    Subd. 17a. <b>Occupational disability.</b> "Occupational disability," for purposes of <br/>
<a id="pl.44.18"></a><var>44.18</var>determining eligibility for disability benefits for a correctional employee, means a <br/>
<a id="pl.44.19"></a><var>44.19</var>disabling condition that is expected to prevent the correctional employee, for a period of <br/>
<a id="pl.44.20"></a><var>44.20</var>not less than 12 months, from performing the normal duties of the position held by the <br/>
<a id="pl.44.21"></a><var>44.21</var>correctional employee.<br/>
<a id="pl.44.22"></a><var>44.22</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2009.<br/>
<br/>
<a id="bill.2.5.0"></a><a id="pl.44.23"></a><var>44.23</var>    Sec. 5. Minnesota Statutes 2008, section 352.01, is amended by adding a subdivision <br/>
<a id="pl.44.24"></a><var>44.24</var>to read:<br/>
<a id="pl.44.25"></a><var>44.25</var>    Subd. 17b. <b>Duty disability, physical or psychological.</b> "Duty disability, physical <br/>
<a id="pl.44.26"></a><var>44.26</var>or psychological," for a correctional employee, means an occupational disability that is the <br/>
<a id="pl.44.27"></a><var>44.27</var>direct result of an injury incurred during, or a disease arising out of, the performance of <br/>
<a id="pl.44.28"></a><var>44.28</var>normal duties or the performance of less frequent duties either of which are specific to <br/>
<a id="pl.44.29"></a><var>44.29</var>the correctional employee.<br/>
<a id="pl.44.30"></a><var>44.30</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2009.<br/>
<br/>
<a id="bill.2.6.0"></a><a id="pl.44.31"></a><var>44.31</var>    Sec. 6. Minnesota Statutes 2008, section 352.01, is amended by adding a subdivision <br/>
<a id="pl.44.32"></a><var>44.32</var>to read:<br/>
<a id="pl.45.1"></a><var>45.1</var>    Subd. 17c. <b>Regular disability, physical or psychological.</b> "Regular disability, <br/>
<a id="pl.45.2"></a><var>45.2</var>physical or psychological," for a correctional employee, means an occupational disability <br/>
<a id="pl.45.3"></a><var>45.3</var>resulting from a disease or an injury that arises from any activities while not at work or <br/>
<a id="pl.45.4"></a><var>45.4</var>from activities while at work performing normal or less frequent duties that do not present <br/>
<a id="pl.45.5"></a><var>45.5</var>inherent dangers specific to covered correctional positions.<br/>
<a id="pl.45.6"></a><var>45.6</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2009.<br/>
<br/>
<a id="bill.2.7.0"></a><a id="pl.45.7"></a><var>45.7</var>    Sec. 7. Minnesota Statutes 2008, section 352.01, is amended by adding a subdivision <br/>
<a id="pl.45.8"></a><var>45.8</var>to read:<br/>
<a id="pl.45.9"></a><var>45.9</var>    Subd. 17d. <b>Normal duties.</b> "Normal duties" means specific tasks designated in the <br/>
<a id="pl.45.10"></a><var>45.10</var>applicant's job description and which the applicant performs on a day-to-day basis, but <br/>
<a id="pl.45.11"></a><var>45.11</var>do not include less frequent duties which may be requested to be done by the employer <br/>
<a id="pl.45.12"></a><var>45.12</var>from time to time.<br/>
<a id="pl.45.13"></a><var>45.13</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2009.<br/>
<br/>
<a id="bill.2.8.0"></a><a id="pl.45.14"></a><var>45.14</var>    Sec. 8. Minnesota Statutes 2008, section 352.01, is amended by adding a subdivision <br/>
<a id="pl.45.15"></a><var>45.15</var>to read:<br/>
<a id="pl.45.16"></a><var>45.16</var>    Subd. 17e. <b>Less frequent duties.</b> "Less frequent duties" means tasks designated <br/>
<a id="pl.45.17"></a><var>45.17</var>in the applicant's job description as either required from time to time or as assigned, but <br/>
<a id="pl.45.18"></a><var>45.18</var>which are not carried out as part of the normal routine of the applicant's job.<br/>
<a id="pl.45.19"></a><var>45.19</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2009.<br/>
<br/>
<a id="bill.2.9.0"></a><a id="pl.45.20"></a><var>45.20</var>    Sec. 9. Minnesota Statutes 2008, section 352.113, subdivision 4, is amended to read:<br/>
<a id="pl.45.21"></a><var>45.21</var>    Subd. 4. <b>Medical or psychological examinations; authorization for payment of </b><br/>
<a id="pl.45.22"></a><var>45.22</var><b>benefit.</b> (a) An applicant shall provide medical, chiropractic, or psychological evidence to <br/>
<a id="pl.45.23"></a><var>45.23</var>support an application for total and permanent disability.<br/>
<a id="pl.45.24"></a><var>45.24</var>(b) The director shall have the employee examined by at least one additional <br/>
<a id="pl.45.25"></a><var>45.25</var>licensed chiropractor, physician, or psychologist designated by the medical adviser. The <br/>
<a id="pl.45.26"></a><var>45.26</var>chiropractors, physicians, or psychologists shall make written reports to the director <br/>
<a id="pl.45.27"></a><var>45.27</var>concerning the employee's disability including expert opinions as to whether the employee <br/>
<a id="pl.45.28"></a><var>45.28</var>is permanently and totally disabled within the meaning of section 
         <statute_ref>352.01, subdivision 17</statute_ref>. <br/>
<a id="pl.45.29"></a><var>45.29</var>(c) The director shall also obtain written certification from the employer stating <br/>
<a id="pl.45.30"></a><var>45.30</var>whether the employment has ceased or whether the employee is on sick leave of <br/>
<a id="pl.45.31"></a><var>45.31</var>absence because of a disability that will prevent further service to the employer and as a <br/>
<a id="pl.45.32"></a><var>45.32</var>consequence the employee is not entitled to compensation from the employer.<br/>
<a id="pl.46.1"></a><var>46.1</var>(d) The medical adviser shall consider the reports of the physicians, psychologists, <br/>
<a id="pl.46.2"></a><var>46.2</var>and chiropractors and any other evidence supplied by the employee or other interested <br/>
<a id="pl.46.3"></a><var>46.3</var>parties. If the medical adviser finds the employee totally and permanently disabled, the <br/>
<a id="pl.46.4"></a><var>46.4</var>adviser shall make appropriate recommendation to the director in writing together with the <br/>
<a id="pl.46.5"></a><var>46.5</var>date from which the employee has been totally disabled. The director shall then determine <br/>
<a id="pl.46.6"></a><var>46.6</var>if the disability occurred within 180 days 18 months of filing the application, while still <br/>
<a id="pl.46.7"></a><var>46.7</var>in the employment of the state, and the propriety of authorizing payment of a disability <br/>
<a id="pl.46.8"></a><var>46.8</var>benefit as provided in this section.<br/>
<a id="pl.46.9"></a><var>46.9</var>(e) A terminated employee may apply for a disability benefit within 180 days 18 <br/>
<a id="pl.46.10"></a><var>46.10</var>months of termination as long as the disability occurred while in the employment of the <br/>
<a id="pl.46.11"></a><var>46.11</var>state. The fact that an employee is placed on leave of absence without compensation <br/>
<a id="pl.46.12"></a><var>46.12</var>because of disability does not bar that employee from receiving a disability benefit.<br/>
<a id="pl.46.13"></a><var>46.13</var>(f) Unless the payment of a disability benefit has terminated because the employee is <br/>
<a id="pl.46.14"></a><var>46.14</var>no longer totally disabled, or because the employee has reached normal retirement age as <br/>
<a id="pl.46.15"></a><var>46.15</var>provided in this section, the disability benefit must cease with the last payment received <br/>
<a id="pl.46.16"></a><var>46.16</var>by the disabled employee or which had accrued during the lifetime of the employee unless <br/>
<a id="pl.46.17"></a><var>46.17</var>there is a spouse surviving. In that event, the surviving spouse is entitled to the disability <br/>
<a id="pl.46.18"></a><var>46.18</var>benefit for the calendar month in which the disabled employee died.<br/>
<a id="pl.46.19"></a><var>46.19</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2009, and applies to disability <br/>
<a id="pl.46.20"></a><var>46.20</var>benefit applicants whose last day of public employment was after June 30, 2009.<br/>
<br/>
<a id="bill.2.10.0"></a><a id="pl.46.21"></a><var>46.21</var>    Sec. 10. Minnesota Statutes 2008, section 352.95, subdivision 1, is amended to read:<br/>
<a id="pl.46.22"></a><var>46.22</var>    Subdivision 1. <b>Job-related disability</b><b> Duty disability; computation of benefit</b><b>.</b><br/>
<a id="pl.46.23"></a><var>46.23</var>A covered correctional employee who becomes disabled and who is expected to be <br/>
<a id="pl.46.24"></a><var>46.24</var>physically or mentally unfit to perform the duties of the position for at least one year as a <br/>
<a id="pl.46.25"></a><var>46.25</var>direct result of an injury, sickness, or other disability that incurred in or arose out of any <br/>
<a id="pl.46.26"></a><var>46.26</var>act of duty that makes the employee physically or mentally unable to perform the duties is <br/>
<a id="pl.46.27"></a><var>46.27</var>determined to have a duty disability, physical or psychological, as defined under section <br/>
<a id="pl.46.28"></a><var>46.28</var>352.01, subdivision 17b, is entitled to a duty disability benefit. The duty disability benefit <br/>
<a id="pl.46.29"></a><var>46.29</var>may must be based on covered correctional service only. The duty disability benefit <br/>
<a id="pl.46.30"></a><var>46.30</var>amount is 50 percent of the average salary defined in section 
         <statute_ref>352.93</statute_ref>, plus an additional <br/>
<a id="pl.46.31"></a><var>46.31</var>percent equal to that specified in section 
         <statute_ref>356.315, subdivision 5</statute_ref>, for each year of covered <br/>
<a id="pl.46.32"></a><var>46.32</var>correctional service in excess of 20 years, ten months, prorated for completed months.<br/>
<a id="pl.46.33"></a><var>46.33</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2009.<br/>
<br/>
<a id="bill.2.11.0"></a><a id="pl.47.1"></a><var>47.1</var>    Sec. 11. Minnesota Statutes 2008, section 352.95, subdivision 2, is amended to read:<br/>
<a id="pl.47.2"></a><var>47.2</var>    Subd. 2. <b>Non-job-related</b><b> Regular</b><b> disability</b><b>; computation of benefit</b><b>.</b> A covered <br/>
<a id="pl.47.3"></a><var>47.3</var>correctional employee who was hired before July 1, 2009, after rendering at least one year <br/>
<a id="pl.47.4"></a><var>47.4</var>of covered correctional service, or a covered correctional employee who was first hired <br/>
<a id="pl.47.5"></a><var>47.5</var>after June 30, 2009, after rendering at least three years of covered correctional plan service, <br/>
<a id="pl.47.6"></a><var>47.6</var>becomes disabled and who is expected to be physically or mentally unfit to perform the <br/>
<a id="pl.47.7"></a><var>47.7</var>duties of the position for at least one year because of sickness or injury that occurred while <br/>
<a id="pl.47.8"></a><var>47.8</var>not engaged in covered employment and who is determined to have a regular disability, <br/>
<a id="pl.47.9"></a><var>47.9</var>physical or psychological, as defined under section 352.01, subdivision 17c, is entitled <br/>
<a id="pl.47.10"></a><var>47.10</var>to a regular disability benefit. The regular disability benefit must be  based on covered <br/>
<a id="pl.47.11"></a><var>47.11</var>correctional service only. The regular disability benefit must be computed as provided <br/>
<a id="pl.47.12"></a><var>47.12</var>in section 
         <statute_ref>352.93, subdivisions 1 and 2</statute_ref>, and. The regular disability benefit of a covered <br/>
<a id="pl.47.13"></a><var>47.13</var>correctional employee who was first hired before July 1, 2009, and who is determined <br/>
<a id="pl.47.14"></a><var>47.14</var>to have a regular disability, physical or psychological, under this subdivision must be <br/>
<a id="pl.47.15"></a><var>47.15</var>computed as though the employee had at least 15 years of covered correctional service.<br/>
<a id="pl.47.16"></a><var>47.16</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2009.<br/>
<br/>
<a id="bill.2.12.0"></a><a id="pl.47.17"></a><var>47.17</var>    Sec. 12. Minnesota Statutes 2008, section 352.95, subdivision 3, is amended to read:<br/>
<a id="pl.47.18"></a><var>47.18</var>    Subd. 3. <b>Applying for benefits; accrual.</b> No application for disability benefits <br/>
<a id="pl.47.19"></a><var>47.19</var>shall may be made until after the last day physically on the job. The disability benefit <br/>
<a id="pl.47.20"></a><var>47.20</var>shall begin begins to accrue the day following the last day for which the employee is paid <br/>
<a id="pl.47.21"></a><var>47.21</var>sick leave or annual leave, but not earlier than 180 days before the date the application <br/>
<a id="pl.47.22"></a><var>47.22</var>is filed. A terminated employee must file a written application within the time frame <br/>
<a id="pl.47.23"></a><var>47.23</var>specified under section 352.113, subdivision 4, paragraph (e).<br/>
<a id="pl.47.24"></a><var>47.24</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2009, and applies to disability <br/>
<a id="pl.47.25"></a><var>47.25</var>benefit applicants whose last day of public employment was after June 30, 2009.<br/>
<br/>
<a id="bill.2.13.0"></a><a id="pl.47.26"></a><var>47.26</var>    Sec. 13. Minnesota Statutes 2008, section 352.95, subdivision 4, is amended to read:<br/>
<a id="pl.47.27"></a><var>47.27</var>    Subd. 4. <b>Medical or psychological evidence.</b> (a) An applicant shall provide <br/>
<a id="pl.47.28"></a><var>47.28</var>medical, chiropractic, or psychological evidence to support an application for disability <br/>
<a id="pl.47.29"></a><var>47.29</var>benefits. The director shall have the employee examined by at least one additional <br/>
<a id="pl.47.30"></a><var>47.30</var>licensed physician, chiropractor, or psychologist who is designated by the medical adviser. <br/>
<a id="pl.47.31"></a><var>47.31</var>The physicians, chiropractors, or psychologists with respect to a mental impairment, <br/>
<a id="pl.47.32"></a><var>47.32</var>shall make written reports to the director concerning the question of the employee's <br/>
<a id="pl.47.33"></a><var>47.33</var>disability, including their expert opinions as to whether the employee is disabled has an <br/>
<a id="pl.48.1"></a><var>48.1</var>occupational disability within the meaning of this section 352.01, subdivision 17a, and <br/>
<a id="pl.48.2"></a><var>48.2</var>whether the employee has a duty disability, physical or psychological, under section <br/>
<a id="pl.48.3"></a><var>48.3</var>352.01, subdivision 17b, or has a regular disability, physical or psychological, under <br/>
<a id="pl.48.4"></a><var>48.4</var>section 352.01, subdivision 17c. The director shall also obtain written certification from <br/>
<a id="pl.48.5"></a><var>48.5</var>the employer stating whether or not the employee is on sick leave of absence because of a <br/>
<a id="pl.48.6"></a><var>48.6</var>disability that will prevent further service to the employer performing normal duties as <br/>
<a id="pl.48.7"></a><var>48.7</var>defined in section 352.01, subdivision 17d, or performing less frequent duties as defined in <br/>
<a id="pl.48.8"></a><var>48.8</var>section 352.01, subdivision 17e, and as a consequence, the employee is not entitled to <br/>
<a id="pl.48.9"></a><var>48.9</var>compensation from the employer.<br/>
<a id="pl.48.10"></a><var>48.10</var>(b) If, on considering the reports by the physicians, chiropractors, or psychologists <br/>
<a id="pl.48.11"></a><var>48.11</var>and any other evidence supplied by the employee or others, the medical adviser finds that <br/>
<a id="pl.48.12"></a><var>48.12</var>the employee disabled has an occupational disability within the meaning of this section <br/>
<a id="pl.48.13"></a><var>48.13</var>352.01, subdivision 17a, the advisor shall make the appropriate recommendation to the <br/>
<a id="pl.48.14"></a><var>48.14</var>director, in writing, together with the date from which the employee has been disabled. <br/>
<a id="pl.48.15"></a><var>48.15</var>The director shall then determine the propriety of authorizing payment of a duty disability <br/>
<a id="pl.48.16"></a><var>48.16</var>benefit or a regular disability benefit as provided in this section.<br/>
<a id="pl.48.17"></a><var>48.17</var>(c) Unless the payment of a disability benefit has terminated because the employee <br/>
<a id="pl.48.18"></a><var>48.18</var>is no longer disabled has an occupational disability, or because the employee has reached <br/>
<a id="pl.48.19"></a><var>48.19</var>either age 65 55 or the five-year anniversary of the effective date of the disability benefit, <br/>
<a id="pl.48.20"></a><var>48.20</var>whichever is later, the disability benefit must cease with the last payment which was <br/>
<a id="pl.48.21"></a><var>48.21</var>received by the disabled employee or which had accrued during the employee's lifetime. <br/>
<a id="pl.48.22"></a><var>48.22</var>While disability benefits are paid, the director has the right, at reasonable times, to <br/>
<a id="pl.48.23"></a><var>48.23</var>require the disabled employee to submit proof of the continuance of the an occupational <br/>
<a id="pl.48.24"></a><var>48.24</var>disability claimed. If any examination indicates to the medical adviser that the employee <br/>
<a id="pl.48.25"></a><var>48.25</var>is no longer disabled has an occupational disability, the disability payment must be <br/>
<a id="pl.48.26"></a><var>48.26</var>discontinued upon the person's reinstatement to state service or within 60 days of the <br/>
<a id="pl.48.27"></a><var>48.27</var>finding, whichever is sooner.<br/>
<a id="pl.48.28"></a><var>48.28</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2009, and applies to disability <br/>
<a id="pl.48.29"></a><var>48.29</var>benefit applicants whose last day of public employment was after June 30, 2009.<br/>
<br/>
<a id="bill.2.14.0"></a><a id="pl.48.30"></a><var>48.30</var>    Sec. 14. Minnesota Statutes 2008, section 352.95, subdivision 5, is amended to read:<br/>
<a id="pl.48.31"></a><var>48.31</var>    Subd. 5. <b>Retirement status at normal retirement age.</b> The disability benefit paid <br/>
<a id="pl.48.32"></a><var>48.32</var>to a disabled correctional employee under this section shall terminate terminates at the end <br/>
<a id="pl.48.33"></a><var>48.33</var>of the month in which the employee reaches age 65 55, or the five-year anniversary of <br/>
<a id="pl.48.34"></a><var>48.34</var>the effective date of the disability benefit, whichever is later. If the disabled correctional <br/>
<a id="pl.48.35"></a><var>48.35</var>employee is still disabled when the employee reaches age 65 55, or the five-year <br/>
<a id="pl.49.1"></a><var>49.1</var>anniversary of the effective date of the disability benefit, whichever is later, the employee <br/>
<a id="pl.49.2"></a><var>49.2</var>shall must be deemed to be a retired employee. If the employee had elected an optional <br/>
<a id="pl.49.3"></a><var>49.3</var>annuity under subdivision 1a, the employee shall receive an annuity in accordance with <br/>
<a id="pl.49.4"></a><var>49.4</var>the terms of the optional annuity previously elected. If the employee had not elected an <br/>
<a id="pl.49.5"></a><var>49.5</var>optional annuity under subdivision 1a, the employee may within 90 days of attaining age <br/>
<a id="pl.49.6"></a><var>49.6</var>65 55 or reaching the five-year anniversary of the effective date of the disability benefit, <br/>
<a id="pl.49.7"></a><var>49.7</var>whichever is later, either elect to receive a normal retirement annuity computed in the <br/>
<a id="pl.49.8"></a><var>49.8</var>manner provided in section 
         <statute_ref>352.93</statute_ref> or elect to receive an optional annuity as provided <br/>
<a id="pl.49.9"></a><var>49.9</var>in section 
         <statute_ref>352.116, subdivision 3</statute_ref>, based on the same length of service as used in the <br/>
<a id="pl.49.10"></a><var>49.10</var>calculation of the disability benefit. Election of an optional annuity must be made within <br/>
<a id="pl.49.11"></a><var>49.11</var>90 days before attaining age 65 55 or reaching the five-year anniversary of the effective <br/>
<a id="pl.49.12"></a><var>49.12</var>date of the disability benefit, whichever is later. If an optional annuity is elected, the <br/>
<a id="pl.49.13"></a><var>49.13</var>optional annuity shall begin begins to accrue on the first of the month following the month <br/>
<a id="pl.49.14"></a><var>49.14</var>in which the employee reaches age 65 55 or the five-year anniversary of the effective date <br/>
<a id="pl.49.15"></a><var>49.15</var>of the disability benefit, whichever is later. <br/>
<a id="pl.49.16"></a><var>49.16</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2009, and applies to disability <br/>
<a id="pl.49.17"></a><var>49.17</var>benefit applicants whose last day of public employment was after June 30, 2009.<br/>
<br/>
<a id="bill.2.15.0"></a><a id="pl.49.18"></a><var>49.18</var>    Sec. 15. <b>[352B.011] DEFINITIONS.</b><br/>
<a id="pl.49.19"></a><var>49.19</var>    Subdivision 1. <b>Scope.</b> For the purposes of this chapter, the terms defined in this <br/>
<a id="pl.49.20"></a><var>49.20</var>section have the meanings given them.<br/>
<a id="pl.49.21"></a><var>49.21</var>    Subd. 2. <b>Accumulated deductions.</b> "Accumulated deductions" means the total <br/>
<a id="pl.49.22"></a><var>49.22</var>sums deducted from the salary of a member and the total amount of assessments paid by <br/>
<a id="pl.49.23"></a><var>49.23</var>a member in place of deductions and credited to the member's individual account as <br/>
<a id="pl.49.24"></a><var>49.24</var>permitted by law without interest.<br/>
<a id="pl.49.25"></a><var>49.25</var>    Subd. 3. <b>Allowable service.</b> (a) "Allowable service" means:<br/>
<a id="pl.49.26"></a><var>49.26</var>(1) service in a month during which a member is paid a salary from which a member <br/>
<a id="pl.49.27"></a><var>49.27</var>contribution is deducted, deposited, and credited in the State Patrol retirement fund;<br/>
<a id="pl.49.28"></a><var>49.28</var>(2) for members defined in subdivision 10, clause (1), service in any month for <br/>
<a id="pl.49.29"></a><var>49.29</var>which payments have been made to the State Patrol retirement fund under law; and<br/>
<a id="pl.49.30"></a><var>49.30</var>(3) for members defined in subdivision 10, clauses (2) and (3), service for which <br/>
<a id="pl.49.31"></a><var>49.31</var>payments have been made to the State Patrol retirement fund under law, service for which <br/>
<a id="pl.49.32"></a><var>49.32</var>payments were made to the State Police officers retirement fund under law after June <br/>
<a id="pl.49.33"></a><var>49.33</var>30, 1961, and all prior service which was credited to a member for service on or before <br/>
<a id="pl.49.34"></a><var>49.34</var>June 30, 1961.<br/>
<a id="pl.50.1"></a><var>50.1</var>(b) Allowable service also includes any period of absence from duty by a member <br/>
<a id="pl.50.2"></a><var>50.2</var>who, by reason of injury incurred in the performance of duty, is temporarily disabled and <br/>
<a id="pl.50.3"></a><var>50.3</var>for which disability the state is liable under the workers' compensation law, until the date <br/>
<a id="pl.50.4"></a><var>50.4</var>authorized by the executive director for commencement of payment of a disability benefit <br/>
<a id="pl.50.5"></a><var>50.5</var>or until the date of a return to employment.<br/>
<a id="pl.50.6"></a><var>50.6</var>    Subd. 4. <b>Average monthly salary.</b> (a) Subject to the limitations of section 
<statute_ref>356.611</statute_ref>, <br/>
<a id="pl.50.7"></a><var>50.7</var>"average monthly salary" means the average of the highest monthly salaries for five <br/>
<a id="pl.50.8"></a><var>50.8</var>years of service as a member upon which contributions were deducted from pay under <br/>
<a id="pl.50.9"></a><var>50.9</var>section 
<statute_ref>352B.02</statute_ref>, or upon which appropriate contributions or payments were made to <br/>
<a id="pl.50.10"></a><var>50.10</var>the fund to receive allowable service and salary credit as specified under the applicable <br/>
<a id="pl.50.11"></a><var>50.11</var>law. Average monthly salary must be based upon all allowable service if this service is <br/>
<a id="pl.50.12"></a><var>50.12</var>less than five years.<br/>
<a id="pl.50.13"></a><var>50.13</var>(b) The salary used for the calculation of "average monthly salary" means the <br/>
<a id="pl.50.14"></a><var>50.14</var>salary of the member as defined in section 
<statute_ref>352.01, subdivision 13</statute_ref>. The salary used for <br/>
<a id="pl.50.15"></a><var>50.15</var>the calculation of "average monthly salary" does not include any lump-sum annual leave <br/>
<a id="pl.50.16"></a><var>50.16</var>payments and overtime payments made at the time of separation from state service, any <br/>
<a id="pl.50.17"></a><var>50.17</var>amounts of severance pay, or any reduced salary paid during the period the person is <br/>
<a id="pl.50.18"></a><var>50.18</var>entitled to workers' compensation benefit payments for temporary disability.<br/>
<a id="pl.50.19"></a><var>50.19</var>    Subd. 5. <b>Department head.</b> "Department head" means the head of any department, <br/>
<a id="pl.50.20"></a><var>50.20</var>institution, or branch of the state service that directly pays salaries from state funds <br/>
<a id="pl.50.21"></a><var>50.21</var>to a member who prepares, approves, and submits salary abstracts of employees to the <br/>
<a id="pl.50.22"></a><var>50.22</var>commissioner of Minnesota Management and Budget.<br/>
<a id="pl.50.23"></a><var>50.23</var>    Subd. 6. <b>Dependent child.</b> "Dependent child" means a natural or adopted unmarried <br/>
<a id="pl.50.24"></a><var>50.24</var>child of a deceased member under the age of 18 years, including any child of the member <br/>
<a id="pl.50.25"></a><var>50.25</var>conceived during the lifetime of the member and born after the death of the member.<br/>
<a id="pl.50.26"></a><var>50.26</var>    Subd. 7. <b>Duty disability.</b> "Duty disability" means a physical or psychological <br/>
<a id="pl.50.27"></a><var>50.27</var>condition that is expected to prevent a member, for a period of not less than 12 months, <br/>
<a id="pl.50.28"></a><var>50.28</var>from performing the normal duties of the position held by the person as a member of the <br/>
<a id="pl.50.29"></a><var>50.29</var>State Patrol retirement fund, and that is the direct result of any injury incurred during, or a <br/>
<a id="pl.50.30"></a><var>50.30</var>disease arising out of, the performance of normal duties or the actual performance of less <br/>
<a id="pl.50.31"></a><var>50.31</var>frequent duties, either of which are specific to protecting the property and personal safety <br/>
<a id="pl.50.32"></a><var>50.32</var>of others and that present inherent dangers that are specific to the positions covered by <br/>
<a id="pl.50.33"></a><var>50.33</var>the State Patrol retirement fund.<br/>
<a id="pl.50.34"></a><var>50.34</var>    Subd. 8 <b>Fund.</b> "Fund" means the State Patrol retirement fund.<br/>
<a id="pl.50.35"></a><var>50.35</var>    Subd. 9. <b>Less frequent duties.</b> "Less frequent duties" means tasks which are <br/>
<a id="pl.50.36"></a><var>50.36</var>designated in the member's job description as either required from time to time or as <br/>
<a id="pl.51.1"></a><var>51.1</var>assigned, but which are not carried out as part of the normal routine of the member's <br/>
<a id="pl.51.2"></a><var>51.2</var>position.<br/>
<a id="pl.51.3"></a><var>51.3</var>    Subd. 10. <b>Member.</b> "Member" means:<br/>
<a id="pl.51.4"></a><var>51.4</var>(1) a State Patrol member currently employed under section 
<statute_ref>299D.03</statute_ref> by the state, <br/>
<a id="pl.51.5"></a><var>51.5</var>who is a peace officer under section 
<statute_ref>626.84</statute_ref>, and whose salary or compensation is paid <br/>
<a id="pl.51.6"></a><var>51.6</var>out of state funds;<br/>
<a id="pl.51.7"></a><var>51.7</var>(2) a conservation officer employed under section 
<statute_ref>97A.201</statute_ref>, currently employed by <br/>
<a id="pl.51.8"></a><var>51.8</var>the state, whose salary or compensation is paid out of state funds;<br/>
<a id="pl.51.9"></a><var>51.9</var>(3) a crime bureau officer who was employed by the crime bureau and was a member <br/>
<a id="pl.51.10"></a><var>51.10</var>of the Highway Patrolmen's retirement fund on July 1, 1978, whether or not that person <br/>
<a id="pl.51.11"></a><var>51.11</var>has the power of arrest by warrant after that date, or who is employed as police personnel, <br/>
<a id="pl.51.12"></a><var>51.12</var>with powers of arrest by warrant under section 
<statute_ref>299C.04</statute_ref>, and who is currently employed <br/>
<a id="pl.51.13"></a><var>51.13</var>by the state, and whose salary or compensation is paid out of state funds;<br/>
<a id="pl.51.14"></a><var>51.14</var>(4) a person who is employed by the state in the Department of Public Safety in a <br/>
<a id="pl.51.15"></a><var>51.15</var>data processing management position with salary or compensation paid from state funds, <br/>
<a id="pl.51.16"></a><var>51.16</var>who was a crime bureau officer covered by the State Patrol retirement plan on August <br/>
<a id="pl.51.17"></a><var>51.17</var>15, 1987, and who was initially hired in the data processing management position within <br/>
<a id="pl.51.18"></a><var>51.18</var>the department during September 1987, or January 1988, with membership continuing <br/>
<a id="pl.51.19"></a><var>51.19</var>for the duration of the person's employment in that position, whether or not the person <br/>
<a id="pl.51.20"></a><var>51.20</var>has the power of arrest by warrant after August 15, 1987;<br/>
<a id="pl.51.21"></a><var>51.21</var>(5) a public safety employee who is a peace officer under section 
<statute_ref>626.84, subdivision <br/>
<a id="pl.51.22"></a><var>51.22</var>1
</statute_ref>, paragraph (c), and who is employed by the Division of Alcohol and Gambling <br/>
<a id="pl.51.23"></a><var>51.23</var>Enforcement under section 
<statute_ref>299L.01</statute_ref>;<br/>
<a id="pl.51.24"></a><var>51.24</var>(6) a Fugitive Apprehension Unit officer after October 31, 2000, who is employed <br/>
<a id="pl.51.25"></a><var>51.25</var>by the Office of Special Investigations of the Department of Corrections and who is a <br/>
<a id="pl.51.26"></a><var>51.26</var>peace officer under section 
<statute_ref>626.84</statute_ref>;<br/>
<a id="pl.51.27"></a><var>51.27</var>(7) an employee of the Department of Commerce defined as a peace officer in section <br/>
<a id="pl.51.28"></a><var>51.28</var><statute_ref>626.84, subdivision 1</statute_ref>, paragraph (c), who is employed by the Division of Insurance Fraud <br/>
<a id="pl.51.29"></a><var>51.29</var>Prevention under section 
<statute_ref>45.0135</statute_ref> after January 1, 2005, and who has not attained the <br/>
<a id="pl.51.30"></a><var>51.30</var>mandatory retirement age specified in section 
<statute_ref>43A.34, subdivision 4</statute_ref>; and<br/>
<a id="pl.51.31"></a><var>51.31</var>(8) an employee of the Department of Public Safety, who is a licensed peace officer <br/>
<a id="pl.51.32"></a><var>51.32</var>under section 
<statute_ref>626.84, subdivision 1</statute_ref>, paragraph (c), and is employed as the statewide <br/>
<a id="pl.51.33"></a><var>51.33</var>coordinator of the Gang and Drug Oversight Council.<br/>
<a id="pl.51.34"></a><var>51.34</var>    Subd. 11. <b>Normal duties.</b> "Normal duties" means specific tasks which are <br/>
<a id="pl.51.35"></a><var>51.35</var>designated in the member's job description and which the applicant performs on a <br/>
<a id="pl.52.1"></a><var>52.1</var>day-to-day basis, but do not include less frequent duties which may be requested to be <br/>
<a id="pl.52.2"></a><var>52.2</var>done by the employer from time to time.<br/>
<a id="pl.52.3"></a><var>52.3</var>    Subd. 12. <b>Regular disability.</b> "Regular disability" means a physical or <br/>
<a id="pl.52.4"></a><var>52.4</var>psychological condition that is expected to prevent a member, for a period of not less than <br/>
<a id="pl.52.5"></a><var>52.5</var>12 months, from performing the normal duties of the position held by a person who is a <br/>
<a id="pl.52.6"></a><var>52.6</var>member of the State Patrol retirement plan, and which results from a disease or an injury <br/>
<a id="pl.52.7"></a><var>52.7</var>that arises from any activities while not at work, or while at work and performing those <br/>
<a id="pl.52.8"></a><var>52.8</var>normal or less frequent duties that do not present inherent dangers that are specific to the <br/>
<a id="pl.52.9"></a><var>52.9</var>occupations covered by the State Patrol retirement plan.<br/>
<a id="pl.52.10"></a><var>52.10</var>    Subd. 13. <b>Surviving spouse.</b> "Surviving spouse" means a member's or former <br/>
<a id="pl.52.11"></a><var>52.11</var>member's legally married spouse who resided with the member or former member at the <br/>
<a id="pl.52.12"></a><var>52.12</var>time of death and was married to the member or former member, for a period of at least <br/>
<a id="pl.52.13"></a><var>52.13</var>one year, during or before the time of membership.<br/>
<a id="pl.52.14"></a><var>52.14</var><b>EFFECTIVE DATE.</b>(a) Except as provided in paragraph (b), this section is <br/>
<a id="pl.52.15"></a><var>52.15</var>effective July 1, 2009.<br/>
<a id="pl.52.16"></a><var>52.16</var>(b) Subdivision 3, paragraph (a), clause (1), is effective retroactively from July <br/>
<a id="pl.52.17"></a><var>52.17</var>1, 1969, and allowable service on the records of the State Patrol retirement plan credit <br/>
<a id="pl.52.18"></a><var>52.18</var>consistent with that provision is validated.<br/>
<br/>
<a id="bill.2.16.0"></a><a id="pl.52.19"></a><var>52.19</var>    Sec. 16. Minnesota Statutes 2008, section 352B.02, subdivision 1, is amended to read:<br/>
<a id="pl.52.20"></a><var>52.20</var>    Subdivision 1. <b>Fund created; membership.</b> A State Patrol retirement fund is <br/>
<a id="pl.52.21"></a><var>52.21</var>established. Its membership consists of all persons defined in section 
         <statute_ref>352B.01, subdivision <br/>
<a id="pl.52.22"></a><var>52.22</var>2
</statute_ref> 352B.011, subdivision 10. <br/>
<a id="pl.52.23"></a><var>52.23</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2009.<br/>
<br/>
<a id="bill.2.17.0"></a><a id="pl.52.24"></a><var>52.24</var>    Sec. 17. <b>[352B.085] SERVICE CREDIT FOR CERTAIN DISABILITY LEAVES </b><br/>
<a id="pl.52.25"></a><var>52.25</var><b>OF ABSENCE.</b><br/>
<a id="pl.52.26"></a><var>52.26</var>A member on leave of absence receiving temporary workers' compensation <br/>
<a id="pl.52.27"></a><var>52.27</var>payments and a reduced salary or no salary from the employer who is entitled to allowable <br/>
<a id="pl.52.28"></a><var>52.28</var>service credit for the period of absence under section 352B.011, subdivision 3, paragraph <br/>
<a id="pl.52.29"></a><var>52.29</var>(b), may make payment to the fund for the difference between salary received, if any, <br/>
<a id="pl.52.30"></a><var>52.30</var>and the salary that the member would normally receive if the member was not on leave <br/>
<a id="pl.52.31"></a><var>52.31</var>of absence during the period. The member shall pay an amount equal to the member <br/>
<a id="pl.52.32"></a><var>52.32</var>and employer contribution rate under section 
<statute_ref>352B.02, subdivisions 1b and 1c</statute_ref>, on <br/>
<a id="pl.52.33"></a><var>52.33</var>the differential salary amount for the period of the leave of absence. The employing <br/>
<a id="pl.53.1"></a><var>53.1</var>department, at its option, may pay the employer amount on behalf of the member. Payment <br/>
<a id="pl.53.2"></a><var>53.2</var>made under this subdivision must include interest at the rate of 8.5 percent per year, and <br/>
<a id="pl.53.3"></a><var>53.3</var>must be completed within one year of the member's return from the leave of absence.<br/>
<a id="pl.53.4"></a><var>53.4</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2009.<br/>
<br/>
<a id="bill.2.18.0"></a><a id="pl.53.5"></a><var>53.5</var>    Sec. 18. <b>[352B.086] SERVICE CREDIT FOR UNIFORMED SERVICE.</b><br/>
<a id="pl.53.6"></a><var>53.6</var>(a) A member who is absent from employment by reason of service in the uniformed <br/>
<a id="pl.53.7"></a><var>53.7</var>services, as defined in United States Code, title 38, section 4303(13), and who returns to <br/>
<a id="pl.53.8"></a><var>53.8</var>state employment in a position covered by the plan upon discharge from service in the <br/>
<a id="pl.53.9"></a><var>53.9</var>uniformed services within the time frame required in United States Code, title 38, section <br/>
<a id="pl.53.10"></a><var>53.10</var>4312(e), may obtain service credit for the period of the uniformed service, provided that <br/>
<a id="pl.53.11"></a><var>53.11</var>the member did not separate from uniformed service with a dishonorable or bad conduct <br/>
<a id="pl.53.12"></a><var>53.12</var>discharge or under other than honorable conditions.<br/>
<a id="pl.53.13"></a><var>53.13</var>(b) The member may obtain credit by paying into the fund an equivalent member <br/>
<a id="pl.53.14"></a><var>53.14</var>contribution based on the member contribution rate or rates in effect at the time that <br/>
<a id="pl.53.15"></a><var>53.15</var>the uniformed service was performed multiplied by the full and fractional years being <br/>
<a id="pl.53.16"></a><var>53.16</var>purchased and applied to the annual salary rate. The annual salary rate is the average <br/>
<a id="pl.53.17"></a><var>53.17</var>annual salary during the purchase period that the member would have received if the <br/>
<a id="pl.53.18"></a><var>53.18</var>member had continued to provide employment services to the state rather than to provide <br/>
<a id="pl.53.19"></a><var>53.19</var>uniformed service, or if the determination of that rate is not reasonably certain, the annual <br/>
<a id="pl.53.20"></a><var>53.20</var>salary rate is the member's average salary rate during the 12-month period of covered <br/>
<a id="pl.53.21"></a><var>53.21</var>employment rendered immediately preceding the purchase period.<br/>
<a id="pl.53.22"></a><var>53.22</var>(c) The equivalent employer contribution and, if applicable, the equivalent employer <br/>
<a id="pl.53.23"></a><var>53.23</var>additional contribution, must be paid by the employing unit, using the employer and <br/>
<a id="pl.53.24"></a><var>53.24</var>employer additional contribution rate or rates in effect at the time that the uniformed <br/>
<a id="pl.53.25"></a><var>53.25</var>service was performed, applied to the same annual salary rate or rates used to compute the <br/>
<a id="pl.53.26"></a><var>53.26</var>equivalent member contribution.<br/>
<a id="pl.53.27"></a><var>53.27</var>(d) If the member equivalent contributions provided for in this subdivision are not <br/>
<a id="pl.53.28"></a><var>53.28</var>paid in full, the member's allowable service credit must be prorated by multiplying the <br/>
<a id="pl.53.29"></a><var>53.29</var>full and fractional number of years of uniformed service eligible for purchase by the <br/>
<a id="pl.53.30"></a><var>53.30</var>ratio obtained by dividing the total member contributions received by the total member <br/>
<a id="pl.53.31"></a><var>53.31</var>contributions otherwise required under this subdivision.<br/>
<a id="pl.53.32"></a><var>53.32</var>(e) To receive allowable service credit under this subdivision, the contributions <br/>
<a id="pl.53.33"></a><var>53.33</var>specified in this section must be transmitted to the fund during the period which begins <br/>
<a id="pl.53.34"></a><var>53.34</var>with the date on which the individual returns to state employment covered by the plan and <br/>
<a id="pl.53.35"></a><var>53.35</var>which has a duration of three times the length of the uniformed service period, but not <br/>
<a id="pl.54.1"></a><var>54.1</var>to exceed five years. If the determined payment period is calculated to be less than one <br/>
<a id="pl.54.2"></a><var>54.2</var>year, the contributions required under this subdivision to receive service credit must be <br/>
<a id="pl.54.3"></a><var>54.3</var>transmitted to the fund within one year from the discharge date.<br/>
<a id="pl.54.4"></a><var>54.4</var>(f) The amount of allowable service credit obtainable under this section may not <br/>
<a id="pl.54.5"></a><var>54.5</var>exceed five years, unless a longer purchase period is required under United States Code, <br/>
<a id="pl.54.6"></a><var>54.6</var>title 38, section 4312.<br/>
<a id="pl.54.7"></a><var>54.7</var>(g) The employing unit shall pay interest on all equivalent member and employer <br/>
<a id="pl.54.8"></a><var>54.8</var>contribution amounts payable under this section. Interest must be computed at a rate of <br/>
<a id="pl.54.9"></a><var>54.9</var>8.5 percent compounded annually from the end of each fiscal year of the leave or break in <br/>
<a id="pl.54.10"></a><var>54.10</var>service to the end of the month in which payment is received.<br/>
<a id="pl.54.11"></a><var>54.11</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2009.<br/>
<br/>
<a id="bill.2.19.0"></a><a id="pl.54.12"></a><var>54.12</var>    Sec. 19. Minnesota Statutes 2008, section 352B.10, subdivision 1, is amended to read:<br/>
<a id="pl.54.13"></a><var>54.13</var>    Subdivision 1. <b>Injuries; payment amounts</b><b> Duty disability</b><b>.</b> A member who <br/>
<a id="pl.54.14"></a><var>54.14</var>becomes disabled and who is expected to be physically or mentally unfit to perform duties <br/>
<a id="pl.54.15"></a><var>54.15</var>for at least one year as a direct result of an injury, sickness, or other disability that incurred <br/>
<a id="pl.54.16"></a><var>54.16</var>in or arose out of any act of duty is determined to qualify for duty disability as defined in <br/>
<a id="pl.54.17"></a><var>54.17</var>section 352B.011, subdivision 7, is entitled to receive a duty disability benefits benefit <br/>
<a id="pl.54.18"></a><var>54.18</var>while disabled. The benefits must be paid in monthly installments. The duty disability <br/>
<a id="pl.54.19"></a><var>54.19</var>benefit is an amount equal to the member's average monthly salary multiplied by 60 <br/>
<a id="pl.54.20"></a><var>54.20</var>percent, plus an additional percent equal to that specified in section 
         <statute_ref>356.315, subdivision <br/>
<a id="pl.54.21"></a><var>54.21</var>6
         </statute_ref>, for each year and pro rata for completed months of service in excess of 20 years, if any.  <br/>
<a id="pl.54.22"></a><var>54.22</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2009.<br/>
<br/>
<a id="bill.2.20.0"></a><a id="pl.54.23"></a><var>54.23</var>    Sec. 20. Minnesota Statutes 2008, section 352B.10, subdivision 2, is amended to read:<br/>
<a id="pl.54.24"></a><var>54.24</var>    Subd. 2. <b>Disabled while not on duty</b><b> Regular disability benefit</b><b>.</b> If A member with <br/>
<a id="pl.54.25"></a><var>54.25</var>at least one year of service becomes disabled and is expected to be physically or mentally <br/>
<a id="pl.54.26"></a><var>54.26</var>unfit to perform the duties of the position for at least one year because of sickness or injury <br/>
<a id="pl.54.27"></a><var>54.27</var>that occurred while not engaged in covered employment, the individual who qualifies for <br/>
<a id="pl.54.28"></a><var>54.28</var>a regular disability benefit as defined in section 352B.011, subdivision 12, is entitled to <br/>
<a id="pl.54.29"></a><var>54.29</var>a regular disability benefits benefit. The regular disability benefit must be computed as if <br/>
<a id="pl.54.30"></a><var>54.30</var>the individual were 55 years old at the date of disability and as if the annuity was payable <br/>
<a id="pl.54.31"></a><var>54.31</var>under section 
         <statute_ref>352B.08</statute_ref>. If a regular disability under this subdivision occurs after one year <br/>
<a id="pl.54.32"></a><var>54.32</var>of service but before 15 years of service, the regular disability benefit must be computed <br/>
<a id="pl.54.33"></a><var>54.33</var>as though the individual had credit for 15 years of service.  <br/>
<a id="pl.55.1"></a><var>55.1</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2009.<br/>
<br/>
<a id="bill.2.21.0"></a><a id="pl.55.2"></a><var>55.2</var>    Sec. 21. Minnesota Statutes 2008, section 352B.10, is amended by adding a <br/>
<a id="pl.55.3"></a><var>55.3</var>subdivision to read:<br/>
<a id="pl.55.4"></a><var>55.4</var>    Subd. 2a. <b>Applying for benefits; accrual.</b> No application for disability benefits <br/>
<a id="pl.55.5"></a><var>55.5</var>shall be made until after the last day physically on the job. The disability benefit begins to <br/>
<a id="pl.55.6"></a><var>55.6</var>accrue the day following the last day for which the employee is paid sick leave or annual <br/>
<a id="pl.55.7"></a><var>55.7</var>leave but not earlier than 180 days before the date the application is filed. A member <br/>
<a id="pl.55.8"></a><var>55.8</var>who is terminated must file a written application within the time frame specified under <br/>
<a id="pl.55.9"></a><var>55.9</var>section 352.113, subdivision 4, paragraph (e).<br/>
<a id="pl.55.10"></a><var>55.10</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2009, and applies to disability <br/>
<a id="pl.55.11"></a><var>55.11</var>benefit applicants whose last day of public employment was after June 30, 2009.<br/>
<br/>
<a id="bill.2.22.0"></a><a id="pl.55.12"></a><var>55.12</var>    Sec. 22. Minnesota Statutes 2008, section 352B.10, subdivision 5, is amended to read:<br/>
<a id="pl.55.13"></a><var>55.13</var>    Subd. 5. <b>Optional annuity.</b> A disabilitant may elect, in lieu of spousal survivorship <br/>
<a id="pl.55.14"></a><var>55.14</var>coverage under section 
         <statute_ref>352B.11, subdivisions 2b and 2c</statute_ref>, the normal disability benefit or <br/>
<a id="pl.55.15"></a><var>55.15</var>an optional annuity as provided in section 
         <statute_ref>352B.08, subdivision 3</statute_ref>. The choice of an <br/>
<a id="pl.55.16"></a><var>55.16</var>optional annuity must be made in writing, on a form prescribed by the executive director, <br/>
<a id="pl.55.17"></a><var>55.17</var>and must be made before the commencement of the payment of the disability benefit, or <br/>
<a id="pl.55.18"></a><var>55.18</var>within 90 days before reaching age 65 55 or before reaching the five-year anniversary <br/>
<a id="pl.55.19"></a><var>55.19</var>of the effective date of the disability benefit, whichever is later. The optional annuity <br/>
<a id="pl.55.20"></a><var>55.20</var>is effective on the date on which the disability benefit begins to accrue, or the month <br/>
<a id="pl.55.21"></a><var>55.21</var>following the attainment of age 65 55 or following the five-year anniversary of the <br/>
<a id="pl.55.22"></a><var>55.22</var>effective date of the disability benefit, whichever is later. <br/>
<a id="pl.55.23"></a><var>55.23</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2009, and applies to disability <br/>
<a id="pl.55.24"></a><var>55.24</var>benefit applicants whose last day of public employment was after June 30, 2009.<br/>
<br/>
<a id="bill.2.23.0"></a><a id="pl.55.25"></a><var>55.25</var>    Sec. 23. Minnesota Statutes 2008, section 352B.11, subdivision 2, is amended to read:<br/>
<a id="pl.55.26"></a><var>55.26</var>    Subd. 2. <b>Death; payment to dependent children; family maximums.</b> (a) Each <br/>
<a id="pl.55.27"></a><var>55.27</var>dependent child, as defined in section 
         <statute_ref>352B.01, subdivision 10</statute_ref> 352B.011, subdivision 6, is <br/>
<a id="pl.55.28"></a><var>55.28</var>entitled to receive a monthly annuity equal to ten percent of the average monthly salary <br/>
<a id="pl.55.29"></a><var>55.29</var>of the deceased member.<br/>
<a id="pl.55.30"></a><var>55.30</var>(b) A dependent child over 18 and under 23 years of age also may receive the <br/>
<a id="pl.55.31"></a><var>55.31</var>monthly benefit provided in this section if the child is continuously attending an accredited <br/>
<a id="pl.55.32"></a><var>55.32</var>school as a full-time student during the normal school year as determined by the director. <br/>
<a id="pl.56.1"></a><var>56.1</var>If the child does not continuously attend school, but separates from full-time attendance <br/>
<a id="pl.56.2"></a><var>56.2</var>during any part of a school year, the annuity must cease at the end of the month of <br/>
<a id="pl.56.3"></a><var>56.3</var>separation.<br/>
<a id="pl.56.4"></a><var>56.4</var>(c) In addition, a payment of $20 per month must be prorated equally to the <br/>
<a id="pl.56.5"></a><var>56.5</var>surviving dependent children when the former member is survived by more than one <br/>
<a id="pl.56.6"></a><var>56.6</var>dependent child.<br/>
<a id="pl.56.7"></a><var>56.7</var>(d) Payments for the benefit of any dependent child must be made to the surviving <br/>
<a id="pl.56.8"></a><var>56.8</var>spouse, or if there is none, to the legal guardian of the child.<br/>
<a id="pl.56.9"></a><var>56.9</var>(e) The monthly benefit for any one family, including a surviving spouse benefit, if <br/>
<a id="pl.56.10"></a><var>56.10</var>applicable, must not be less than 50 percent nor exceed 70 percent of the average monthly <br/>
<a id="pl.56.11"></a><var>56.11</var>salary of the deceased member.  <br/>
<a id="pl.56.12"></a><var>56.12</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2009.<br/>
<br/>
<a id="bill.2.24.0"></a><a id="pl.56.13"></a><var>56.13</var>    Sec. 24. <b> REPEALER.</b><br/>
<a id="pl.56.14"></a><var>56.14</var>Minnesota Statutes 2008, section 352B.01, subdivisions 1, 2, 3, 3b, 4, 6, 7, 9, 10, <br/>
<a id="pl.56.15"></a><var>56.15</var>and 11, are repealed.<br/>
<a id="pl.56.16"></a><var>56.16</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2009.<br/>
<br/>
<a id="bill.3.0.0"></a>

<a id="pl.56.19"></a><var>56.19</var><b>MEMBERSHIP CHANGES</b><br/>

<a id="bill.3.1.0"></a><a id="pl.56.20"></a><var>56.20</var>    Section 1. Minnesota Statutes 2008, section 352.91, subdivision 3d, is amended to read:<br/>
<a id="pl.56.21"></a><var>56.21</var>    Subd. 3d. <b>Other correctional personnel.</b> (a) "Covered correctional service" means <br/>
<a id="pl.56.22"></a><var>56.22</var>service by a state employee in one of the employment positions at a correctional facility or <br/>
<a id="pl.56.23"></a><var>56.23</var>at the Minnesota Security Hospital specified in paragraph (b) if at least 75 percent of the <br/>
<a id="pl.56.24"></a><var>56.24</var>employee's working time is spent in direct contact with inmates or patients and the fact of <br/>
<a id="pl.56.25"></a><var>56.25</var>this direct contact is certified to the executive director by the appropriate commissioner.<br/>
<a id="pl.56.26"></a><var>56.26</var>    (b) The employment positions are:<br/>
<a id="pl.56.27"></a><var>56.27</var>    (1) automotive mechanic;<br/>
<a id="pl.56.28"></a><var>56.28</var>(2) baker;<br/>
<a id="pl.56.29"></a><var>56.29</var>    (2) (3) central services administrative specialist, intermediate;<br/>
<a id="pl.56.30"></a><var>56.30</var>    (3) (4) central services administrative specialist, principal;<br/>
<a id="pl.56.31"></a><var>56.31</var>    (4) (5) chaplain;<br/>
<a id="pl.56.32"></a><var>56.32</var>    (5) (6) chief cook;<br/>
<a id="pl.56.33"></a><var>56.33</var>    (6) (7) cook;<br/>
<a id="pl.57.1"></a><var>57.1</var>    (7) (8) cook coordinator;<br/>
<a id="pl.57.2"></a><var>57.2</var>    (8) (9) corrections program therapist 1;<br/>
<a id="pl.57.3"></a><var>57.3</var>    (9) (10) corrections program therapist 2;<br/>
<a id="pl.57.4"></a><var>57.4</var>    (10) (11) corrections program therapist 3;<br/>
<a id="pl.57.5"></a><var>57.5</var>    (11) (12) corrections program therapist 4;<br/>
<a id="pl.57.6"></a><var>57.6</var>    (12) (13) corrections inmate program coordinator;<br/>
<a id="pl.57.7"></a><var>57.7</var>    (13) (14) corrections transitions program coordinator;<br/>
<a id="pl.57.8"></a><var>57.8</var>    (14) (15) corrections security caseworker;<br/>
<a id="pl.57.9"></a><var>57.9</var>    (15) (16) corrections security caseworker career;<br/>
<a id="pl.57.10"></a><var>57.10</var>    (16) (17) corrections teaching assistant;<br/>
<a id="pl.57.11"></a><var>57.11</var>    (17) (18) delivery van driver;<br/>
<a id="pl.57.12"></a><var>57.12</var>    (18) (19) dentist;<br/>
<a id="pl.57.13"></a><var>57.13</var>    (19) (20) electrician supervisor;<br/>
<a id="pl.57.14"></a><var>57.14</var>    (20) (21) general maintenance worker lead;<br/>
<a id="pl.57.15"></a><var>57.15</var>    (21) (22) general repair worker;<br/>
<a id="pl.57.16"></a><var>57.16</var>    (22) (23) library/information research services specialist;<br/>
<a id="pl.57.17"></a><var>57.17</var>    (23) (24) library/information research services specialist senior;<br/>
<a id="pl.57.18"></a><var>57.18</var>    (24) (25) library technician;<br/>
<a id="pl.57.19"></a><var>57.19</var>    (25) (26) painter lead;<br/>
<a id="pl.57.20"></a><var>57.20</var>    (26) (27) plant maintenance engineer lead;<br/>
<a id="pl.57.21"></a><var>57.21</var>    (27) (28) plumber supervisor;<br/>
<a id="pl.57.22"></a><var>57.22</var>    (28) (29) psychologist 1;<br/>
<a id="pl.57.23"></a><var>57.23</var>    (29) (30) psychologist 3;<br/>
<a id="pl.57.24"></a><var>57.24</var>    (30) (31) recreation therapist;<br/>
<a id="pl.57.25"></a><var>57.25</var>    (31) (32) recreation therapist coordinator;<br/>
<a id="pl.57.26"></a><var>57.26</var>    (32) (33) recreation program assistant;<br/>
<a id="pl.57.27"></a><var>57.27</var>    (33) (34) recreation therapist senior;<br/>
<a id="pl.57.28"></a><var>57.28</var>    (34) (35) sports medicine specialist;<br/>
<a id="pl.57.29"></a><var>57.29</var>    (35) (36) work therapy assistant;<br/>
<a id="pl.57.30"></a><var>57.30</var>    (36) (37) work therapy program coordinator; and<br/>
<a id="pl.57.31"></a><var>57.31</var>    (37) (38) work therapy technician.<br/>
<a id="pl.57.32"></a><var>57.32</var><b>EFFECTIVE DATE.</b>This section is effective retroactively from May 29, 2007.<br/>
<br/>
<a id="bill.3.2.0"></a><a id="pl.57.33"></a><var>57.33</var>    Sec. 2. <b>MSRS-CORRECTIONAL; ELIMINATION OF CERTAIN POSITION </b><br/>
<a id="pl.57.34"></a><var>57.34</var><b>FROM COVERAGE.</b><br/>
<a id="pl.58.1"></a><var>58.1</var>Notwithstanding any provision of Minnesota Statutes, section 352.91, to the contrary, <br/>
<a id="pl.58.2"></a><var>58.2</var>including Minnesota Statutes, section 352.91, subdivision 2, "covered correctional service" <br/>
<a id="pl.58.3"></a><var>58.3</var>does not mean service rendered by a state employee as an automotive mechanic lead.<br/>
<a id="pl.58.4"></a><var>58.4</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.4.0.0"></a>

<a id="bill.4.1.0"></a><a id="pl.58.7"></a><var>58.7</var>    Section 1. Minnesota Statutes 2008, section 43A.346, subdivision 2, is amended to <br/>
<a id="pl.58.8"></a><var>58.8</var>read:<br/>
<a id="pl.58.9"></a><var>58.9</var>    Subd. 2. <b>Eligibility.</b> (a) This section applies to a terminated state employee who:<br/>
<a id="pl.58.10"></a><var>58.10</var>    (1) for at least the five years immediately preceding separation under clause (2), <br/>
<a id="pl.58.11"></a><var>58.11</var>was regularly scheduled to work 1,044 or more hours per year in a position covered by <br/>
<a id="pl.58.12"></a><var>58.12</var>a pension plan administered by the Minnesota State Retirement System or the Public <br/>
<a id="pl.58.13"></a><var>58.13</var>Employees Retirement Association;<br/>
<a id="pl.58.14"></a><var>58.14</var>    (2) terminated state or Metropolitan Council employment;<br/>
<a id="pl.58.15"></a><var>58.15</var>    (3) at the time of termination under clause (2), met the age and service requirements <br/>
<a id="pl.58.16"></a><var>58.16</var>necessary to receive an unreduced retirement annuity from the plan and satisfied <br/>
<a id="pl.58.17"></a><var>58.17</var>requirements for the commencement of the retirement annuity or, for a terminated <br/>
<a id="pl.58.18"></a><var>58.18</var>employee under the unclassified employees retirement plan, met the age and service <br/>
<a id="pl.58.19"></a><var>58.19</var>requirements necessary to receive an unreduced retirement annuity from the plan and <br/>
<a id="pl.58.20"></a><var>58.20</var>satisfied requirements for the commencement of the retirement annuity or elected a <br/>
<a id="pl.58.21"></a><var>58.21</var>lump-sum payment; and<br/>
<a id="pl.58.22"></a><var>58.22</var>    (4) agrees to accept a postretirement option position with the same or a different <br/>
<a id="pl.58.23"></a><var>58.23</var>appointing authority, working a reduced schedule that is both (i) a reduction of at least 25 <br/>
<a id="pl.58.24"></a><var>58.24</var>percent from the employee's number of previously regularly scheduled work hours; and <br/>
<a id="pl.58.25"></a><var>58.25</var>(ii) 1,044 hours or less in state or Metropolitan Council service.<br/>
<a id="pl.58.26"></a><var>58.26</var>    (b) For purposes of this section, an unreduced retirement annuity includes a <br/>
<a id="pl.58.27"></a><var>58.27</var>retirement annuity computed under a provision of law which permits retirement, without <br/>
<a id="pl.58.28"></a><var>58.28</var>application of an earlier retirement reduction factor, whenever age plus years of allowable <br/>
<a id="pl.58.29"></a><var>58.29</var>service total at least 90.<br/>
<a id="pl.58.30"></a><var>58.30</var>    (c) For purposes of this section, as it applies to staff state employees who are <br/>
<a id="pl.58.31"></a><var>58.31</var>members of the Public Employees Retirement Association who are at least age 62, the <br/>
<a id="pl.58.32"></a><var>58.32</var>length of separation requirement and termination of service requirement prohibiting return <br/>
<a id="pl.58.33"></a><var>58.33</var>to work agreements under section 
         <statute_ref>353.01, subdivisions 11a</statute_ref> and 28, are not applicable.<br/>
<a id="pl.58.34"></a><var>58.34</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.4.2.0"></a><a id="pl.59.1"></a><var>59.1</var>    Sec. 2. Minnesota Statutes 2008, section 43A.346, subdivision 6, is amended to read:<br/>
<a id="pl.59.2"></a><var>59.2</var>    Subd. 6. <b>Duration.</b> Postretirement option employment shall be is for an initial <br/>
<a id="pl.59.3"></a><var>59.3</var>period not to exceed one year. During that period, the appointing authority may not <br/>
<a id="pl.59.4"></a><var>59.4</var>modify the conditions specified in the written offer without the person's consent, except as <br/>
<a id="pl.59.5"></a><var>59.5</var>required by law or by the collective bargaining agreement or compensation plan applicable <br/>
<a id="pl.59.6"></a><var>59.6</var>to the person. At the end of the initial period, the appointing authority has sole discretion <br/>
<a id="pl.59.7"></a><var>59.7</var>to determine if the offer of a postretirement option position will be renewed, renewed <br/>
<a id="pl.59.8"></a><var>59.8</var>with modifications, or terminated. If the person is under age 62, an offer of renewal <br/>
<a id="pl.59.9"></a><var>59.9</var>and any related verbal offer or agreement must not be made until at least 30 days after <br/>
<a id="pl.59.10"></a><var>59.10</var>termination of the person's previous postretirement option employment. Postretirement <br/>
<a id="pl.59.11"></a><var>59.11</var>option employment may be renewed for periods of up to one year, not to exceed a total <br/>
<a id="pl.59.12"></a><var>59.12</var>duration of five years. No person shall may be employed in one or a combination of <br/>
<a id="pl.59.13"></a><var>59.13</var>postretirement option positions under this section for a total of more than five years.<br/>
<a id="pl.59.14"></a><var>59.14</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.4.3.0"></a><a id="pl.59.15"></a><var>59.15</var>    Sec. 3. Minnesota Statutes 2008, section 352B.02, subdivision 1a, is amended to read:<br/>
<a id="pl.59.16"></a><var>59.16</var>    Subd. 1a. <b>Member contributions.</b> (a) Each The member shall pay a sum equal to <br/>
<a id="pl.59.17"></a><var>59.17</var>the following contribution is 10.40 percent of the member's salary, which constitutes the <br/>
<a id="pl.59.18"></a><var>59.18</var>member contribution to the fund:. <br/>
<table>
<col width="50px"/>
<col width="5"/>
<col width="35"/>
<col width="25"/>
<tr>
<td><a id="pl.59.19"></a><var>59.19</var><br/>
</td>
<td></td>
<td>before July 1, 2007<br/>
</td>
<td>8.40<br/>
</td>
</tr>
<tr>
<td><a id="pl.59.20"></a><var>59.20</var><br/>
</td>
<td></td>
<td>from July 1, 2007, to June 30, 2008<br/>
</td>
<td>9.10<br/>
</td>
</tr>
<tr>
<td><a id="pl.59.21"></a><var>59.21</var><br/>
</td>
<td></td>
<td>from July 1, 2008, to June 30, 2009<br/>
</td>
<td>9.80<br/>
</td>
</tr>
<tr>
<td><a id="pl.59.22"></a><var>59.22</var><br/>
</td>
<td></td>
<td>from July 1, 2009, and thereafter<br/>
</td>
<td>10.40.<br/>
</td>
</tr>
</table><a id="pl.59.23"></a><var>59.23</var>(b) These contributions must be made by deduction from salary as provided in <br/>
<a id="pl.59.24"></a><var>59.24</var>section 
         <statute_ref>352.04</statute_ref>, subdivision 4.<br/>
<a id="pl.59.25"></a><var>59.25</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2009.<br/>
<br/>
<a id="bill.4.4.0"></a><a id="pl.59.26"></a><var>59.26</var>    Sec. 4. Minnesota Statutes 2008, section 352B.02, subdivision 1c, is amended to read:<br/>
<a id="pl.59.27"></a><var>59.27</var>    Subd. 1c. <b>Employer contributions.</b> (a) In addition to member contributions, <br/>
<a id="pl.59.28"></a><var>59.28</var>department heads shall pay a sum equal to the following 15.60 percent of the salary upon <br/>
<a id="pl.59.29"></a><var>59.29</var>which deductions were made, which shall constitute constitutes the employer contribution <br/>
<a id="pl.59.30"></a><var>59.30</var>to the fund:. <br/>
<table>
<col width="50px"/>
<col width="5"/>
<col width="35"/>
<col width="25"/>
<tr>
<td><a id="pl.59.31"></a><var>59.31</var><br/>
</td>
<td></td>
<td>before July 1, 2007<br/>
</td>
<td>12.60<br/>
</td>
</tr>
<tr>
<td><a id="pl.59.32"></a><var>59.32</var><br/>
</td>
<td></td>
<td>from July 1, 2007, to June 30, 2008<br/>
</td>
<td>13.60<br/>
</td>
</tr>
<tr>
<td><a id="pl.59.33"></a><var>59.33</var><br/>
</td>
<td></td>
<td>from July 1, 2008, to June 30, 2009<br/>
</td>
<td>14.60<br/>
</td>
</tr>
<tr>
<td><a id="pl.59.34"></a><var>59.34</var><br/>
</td>
<td></td>
<td>from July 1, 2009, and thereafter<br/>
</td>
<td>15.60.<br/>
</td>
</tr>
</table><a id="pl.60.1"></a><var>60.1</var>(b) Department contributions must be paid out of money appropriated to departments <br/>
<a id="pl.60.2"></a><var>60.2</var>for this purpose.<br/>
<a id="pl.60.3"></a><var>60.3</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2009.<br/>
<br/>
<a id="bill.4.5.0"></a><a id="pl.60.4"></a><var>60.4</var>    Sec. 5. Minnesota Statutes 2008, section 353.01, subdivision 16, is amended to read:<br/>
<a id="pl.60.5"></a><var>60.5</var>    Subd. 16. <b>Allowable service; limits and computation.</b> (a) "Allowable service" <br/>
<a id="pl.60.6"></a><var>60.6</var>means:<br/>
<a id="pl.60.7"></a><var>60.7</var>    (1) service during years of actual membership in the course of which employee <br/>
<a id="pl.60.8"></a><var>60.8</var>deductions were withheld from salary and contributions were made,  at the applicable rates <br/>
<a id="pl.60.9"></a><var>60.9</var>under section 353.27, 353.65, or 353E.03;<br/>
<a id="pl.60.10"></a><var>60.10</var>(2) periods of service covered by payments in lieu of salary deductions under section <br/>
<a id="pl.60.11"></a><var>60.11</var>sections 353.27, subdivision 12, and
<statute_ref>353.35</statute_ref>; <br/>
<a id="pl.60.12"></a><var>60.12</var>    (2) (3) service in years during which the public employee was not a member but for <br/>
<a id="pl.60.13"></a><var>60.13</var>which the member later elected, while a member, to obtain credit by making payments to <br/>
<a id="pl.60.14"></a><var>60.14</var>the fund as permitted by any law then in effect;<br/>
<a id="pl.60.15"></a><var>60.15</var>    (3) (4) a period of authorized leave of absence with pay from which deductions for <br/>
<a id="pl.60.16"></a><var>60.16</var>employee contributions are made, deposited, and credited to the fund;<br/>
<a id="pl.60.17"></a><var>60.17</var>    (4) (5) a period of authorized personal, parental, or medical leave of absence without <br/>
<a id="pl.60.18"></a><var>60.18</var>pay, including a leave of absence covered under the federal Family Medical Leave Act, <br/>
<a id="pl.60.19"></a><var>60.19</var>that does not exceed one year, and for which a member obtained service credit for each <br/>
<a id="pl.60.20"></a><var>60.20</var>month in the leave period by payment under section 
         <statute_ref>353.0161</statute_ref> to the fund made in place of <br/>
<a id="pl.60.21"></a><var>60.21</var>salary deductions. An employee must return to public service and render a minimum of <br/>
<a id="pl.60.22"></a><var>60.22</var>three months of allowable service in order to be eligible to make payment under section <br/>
<statute_ref><a id="pl.60.23"></a><var>60.23</var>353.0161
         </statute_ref> for a subsequent authorized leave of absence without pay. Upon payment, the <br/>
<a id="pl.60.24"></a><var>60.24</var>employee must be granted allowable service credit for the purchased period; <br/>
<a id="pl.60.25"></a><var>60.25</var>    (5) (6) a periodic, repetitive leave that is offered to all employees of a governmental <br/>
<a id="pl.60.26"></a><var>60.26</var>subdivision. The leave program may not exceed 208 hours per annual normal work <br/>
<a id="pl.60.27"></a><var>60.27</var>cycle as certified to the association by the employer. A participating member obtains <br/>
<a id="pl.60.28"></a><var>60.28</var>service credit by making employee contributions in an amount or amounts based on the <br/>
<a id="pl.60.29"></a><var>60.29</var>member's average salary that would have been paid if the leave had not been taken. The <br/>
<a id="pl.60.30"></a><var>60.30</var>employer shall pay the employer and additional employer contributions on behalf of the <br/>
<a id="pl.60.31"></a><var>60.31</var>participating member. The employee and the employer are responsible to pay interest on <br/>
<a id="pl.60.32"></a><var>60.32</var>their respective shares at the rate of 8.5 percent a year, compounded annually, from the <br/>
<a id="pl.60.33"></a><var>60.33</var>end of the normal cycle until full payment is made. An employer shall also make the <br/>
<a id="pl.60.34"></a><var>60.34</var>employer and additional employer contributions, plus 8.5 percent interest, compounded <br/>
<a id="pl.60.35"></a><var>60.35</var>annually, on behalf of an employee who makes employee contributions but terminates <br/>
<a id="pl.61.1"></a><var>61.1</var>public service. The employee contributions must be made within one year after the end of <br/>
<a id="pl.61.2"></a><var>61.2</var>the annual normal working cycle or within 20 30 days after termination of public service, <br/>
<a id="pl.61.3"></a><var>61.3</var>whichever is sooner. The executive director shall prescribe the manner and forms to be <br/>
<a id="pl.61.4"></a><var>61.4</var>used by a governmental subdivision in administering a periodic, repetitive leave. Upon <br/>
<a id="pl.61.5"></a><var>61.5</var>payment, the member must be granted allowable service credit for the purchased period;<br/>
<a id="pl.61.6"></a><var>61.6</var>    (6) (7) an authorized temporary or seasonal layoff under subdivision 12, limited <br/>
<a id="pl.61.7"></a><var>61.7</var>to three months allowable service per authorized temporary or seasonal layoff in one <br/>
<a id="pl.61.8"></a><var>61.8</var>calendar year. An employee who has received the maximum service credit allowed for an <br/>
<a id="pl.61.9"></a><var>61.9</var>authorized temporary or seasonal layoff must return to public service and must obtain a <br/>
<a id="pl.61.10"></a><var>61.10</var>minimum of three months of allowable service subsequent to the layoff in order to receive <br/>
<a id="pl.61.11"></a><var>61.11</var>allowable service for a subsequent authorized temporary or seasonal layoff; or<br/>
<a id="pl.61.12"></a><var>61.12</var>    (7) (8) a period during which a member is absent from employment by a <br/>
<a id="pl.61.13"></a><var>61.13</var>governmental subdivision by reason of service in the uniformed services, as defined in <br/>
<a id="pl.61.14"></a><var>61.14</var>United States Code, title 38, section 4303(13), if the member returns to public service with <br/>
<a id="pl.61.15"></a><var>61.15</var>the same governmental subdivision upon discharge from service in the uniformed service <br/>
<a id="pl.61.16"></a><var>61.16</var>within the time frames required under United States Code, title 38, section 4312(e), <br/>
<a id="pl.61.17"></a><var>61.17</var>provided that the member did not separate from uniformed service with a dishonorable or <br/>
<a id="pl.61.18"></a><var>61.18</var>bad conduct discharge or under other than honorable conditions. The service is credited <br/>
<a id="pl.61.19"></a><var>61.19</var>if the member pays into the fund equivalent employee contributions based upon the <br/>
<a id="pl.61.20"></a><var>61.20</var>contribution rate or rates in effect at the time that the uniformed service was performed <br/>
<a id="pl.61.21"></a><var>61.21</var>multiplied by the full and fractional years being purchased and applied to the annual salary <br/>
<a id="pl.61.22"></a><var>61.22</var>rate. The annual salary rate is the average annual salary during the purchase period that <br/>
<a id="pl.61.23"></a><var>61.23</var>the member would have received if the member had continued to be employed in covered <br/>
<a id="pl.61.24"></a><var>61.24</var>employment rather than to provide uniformed service, or, if the determination of that <br/>
<a id="pl.61.25"></a><var>61.25</var>rate is not reasonably certain, the annual salary rate is the member's average salary rate <br/>
<a id="pl.61.26"></a><var>61.26</var>during the 12-month period of covered employment rendered immediately preceding the <br/>
<a id="pl.61.27"></a><var>61.27</var>period of the uniformed service. Payment of the member equivalent contributions must <br/>
<a id="pl.61.28"></a><var>61.28</var>be made during a period that begins with the date on which the individual returns to <br/>
<a id="pl.61.29"></a><var>61.29</var>public employment and that is three times the length of the military leave period, or <br/>
<a id="pl.61.30"></a><var>61.30</var>within five years of the date of discharge from the military service, whichever is less. If <br/>
<a id="pl.61.31"></a><var>61.31</var>the determined payment period is less than one year, the contributions required under <br/>
<a id="pl.61.32"></a><var>61.32</var>this clause to receive service credit may be made within one year of the discharge date. <br/>
<a id="pl.61.33"></a><var>61.33</var>Payment may not be accepted following 20 30 days after termination of public service <br/>
<a id="pl.61.34"></a><var>61.34</var>under subdivision 11a. If the member equivalent contributions provided for in this clause <br/>
<a id="pl.61.35"></a><var>61.35</var>are not paid in full, the member's allowable service credit must be prorated by multiplying <br/>
<a id="pl.61.36"></a><var>61.36</var>the full and fractional number of years of uniformed service eligible for purchase by the <br/>
<a id="pl.62.1"></a><var>62.1</var>ratio obtained by dividing the total member contributions received by the total member <br/>
<a id="pl.62.2"></a><var>62.2</var>contributions otherwise required under this clause. The equivalent employer contribution, <br/>
<a id="pl.62.3"></a><var>62.3</var>and, if applicable, the equivalent additional employer contribution must be paid by the <br/>
<a id="pl.62.4"></a><var>62.4</var>governmental subdivision employing the member if the member makes the equivalent <br/>
<a id="pl.62.5"></a><var>62.5</var>employee contributions. The employer payments must be made from funds available to <br/>
<a id="pl.62.6"></a><var>62.6</var>the employing unit, using the employer and additional employer contribution rate or <br/>
<a id="pl.62.7"></a><var>62.7</var>rates in effect at the time that the uniformed service was performed, applied to the same <br/>
<a id="pl.62.8"></a><var>62.8</var>annual salary rate or rates used to compute the equivalent member contribution. The <br/>
<a id="pl.62.9"></a><var>62.9</var>governmental subdivision involved may appropriate money for those payments. The <br/>
<a id="pl.62.10"></a><var>62.10</var>amount of service credit obtainable under this section may not exceed five years unless a <br/>
<a id="pl.62.11"></a><var>62.11</var>longer purchase period is required under United States Code, title 38, section 4312. The <br/>
<a id="pl.62.12"></a><var>62.12</var>employing unit shall pay interest on all equivalent member and employer contribution <br/>
<a id="pl.62.13"></a><var>62.13</var>amounts payable under this clause. Interest must be computed at a rate of 8.5 percent <br/>
<a id="pl.62.14"></a><var>62.14</var>compounded annually from the end of each fiscal year of the leave or the break in service <br/>
<a id="pl.62.15"></a><var>62.15</var>to the end of the month in which the payment is received. Upon payment, the employee <br/>
<a id="pl.62.16"></a><var>62.16</var>must be granted allowable service credit for the purchased period.; or<br/>
<a id="pl.62.17"></a><var>62.17</var>(9) a period specified under subdivision 40.<br/>
<a id="pl.62.18"></a><var>62.18</var>    (b) For calculating benefits under sections 
         <statute_ref>353.30</statute_ref>, 
         <statute_ref>353.31</statute_ref>, 
         <statute_ref>353.32</statute_ref>, and 
         <statute_ref>353.33</statute_ref> for <br/>
<a id="pl.62.19"></a><var>62.19</var>state officers and employees displaced by the Community Corrections Act, chapter 401, <br/>
<a id="pl.62.20"></a><var>62.20</var>and transferred into county service under section 
         <statute_ref>401.04</statute_ref>, "allowable service" means the <br/>
<a id="pl.62.21"></a><var>62.21</var>combined years of allowable service as defined in paragraph (a), clauses (1) to (6), and <br/>
<a id="pl.62.22"></a><var>62.22</var>section 
         <statute_ref>352.01, subdivision 11</statute_ref>. <br/>
<a id="pl.62.23"></a><var>62.23</var>    (c) For a public employee who has prior service covered by a local police or <br/>
<a id="pl.62.24"></a><var>62.24</var>firefighters relief association that has consolidated with the Public Employees Retirement <br/>
<a id="pl.62.25"></a><var>62.25</var>Association or to which section 
         <statute_ref>353.665</statute_ref> applies, and who has elected the type of benefit <br/>
<a id="pl.62.26"></a><var>62.26</var>coverage provided by the public employees police and fire fund either under section <br/>
<statute_ref><a id="pl.62.27"></a><var>62.27</var>353A.08
         </statute_ref> following the consolidation or under section 
         <statute_ref>353.665, subdivision 4</statute_ref>, "applicable <br/>
<a id="pl.62.28"></a><var>62.28</var>service" is a period of service credited by the local police or firefighters relief association <br/>
<a id="pl.62.29"></a><var>62.29</var>as of the effective date of the consolidation based on law and on bylaw provisions <br/>
<a id="pl.62.30"></a><var>62.30</var>governing the relief association on the date of the initiation of the consolidation procedure. <br/>
<a id="pl.62.31"></a><var>62.31</var>    (d) No member may receive more than 12 months of allowable service credit in a <br/>
<a id="pl.62.32"></a><var>62.32</var>year either for vesting purposes or for benefit calculation purposes.<br/>
<a id="pl.62.33"></a><var>62.33</var>    (e) MS 2002 [Expired]<br/>
<a id="pl.62.34"></a><var>62.34</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.4.6.0"></a><a id="pl.62.35"></a><var>62.35</var>    Sec. 6. Minnesota Statutes 2008, section 353.01, subdivision 16b, is amended to read:<br/>
<a id="pl.63.1"></a><var>63.1</var>    Subd. 16b. <b>Uncredited military service credit purchase.</b> (a) A public employee <br/>
<a id="pl.63.2"></a><var>63.2</var>who has at least three years of allowable service with the Public Employees Retirement <br/>
<a id="pl.63.3"></a><var>63.3</var>Association or the public employees police and fire plan and who performed service in the <br/>
<a id="pl.63.4"></a><var>63.4</var>United States armed forces before becoming a public employee, or who failed to obtain <br/>
<a id="pl.63.5"></a><var>63.5</var>service credit for a military leave of absence under subdivision 16, paragraph (h) (a), <br/>
<a id="pl.63.6"></a><var>63.6</var>clause 7, is entitled to purchase allowable service credit for the initial period of enlistment, <br/>
<a id="pl.63.7"></a><var>63.7</var>induction, or call to active duty without any voluntary extension by making payment under <br/>
<a id="pl.63.8"></a><var>63.8</var>section 
         <statute_ref>356.551</statute_ref>. This authority is voided if the public employee has not purchased service <br/>
<a id="pl.63.9"></a><var>63.9</var>credit from any other Minnesota defined benefit public employee pension plan, other than <br/>
<a id="pl.63.10"></a><var>63.10</var>a volunteer fire plan, for the same period of service, or if the separation from the United <br/>
<a id="pl.63.11"></a><var>63.11</var>States armed forces was under less than honorable conditions.<br/>
<a id="pl.63.12"></a><var>63.12</var>    (b) A public employee who desires to purchase service credit under paragraph <br/>
<a id="pl.63.13"></a><var>63.13</var>(a) must apply with the executive director to make the purchase. The application must <br/>
<a id="pl.63.14"></a><var>63.14</var>include all necessary documentation of the public employee's qualifications to make the <br/>
<a id="pl.63.15"></a><var>63.15</var>purchase, signed written permission to allow the executive director to request and receive <br/>
<a id="pl.63.16"></a><var>63.16</var>necessary verification of applicable facts and eligibility requirements, and any other <br/>
<a id="pl.63.17"></a><var>63.17</var>relevant information that the executive director may require.<br/>
<a id="pl.63.18"></a><var>63.18</var>    (c) Allowable service credit for the purchase period must be granted by the <br/>
<a id="pl.63.19"></a><var>63.19</var>Public Employees Retirement Association or the public employees police and fire plan, <br/>
<a id="pl.63.20"></a><var>63.20</var>whichever applies, to the purchasing public employee upon receipt of the purchase <br/>
<a id="pl.63.21"></a><var>63.21</var>payment amount. Payment must be made before the effective date of retirement of the <br/>
<a id="pl.63.22"></a><var>63.22</var>public employee employee's termination of public service or termination of membership, <br/>
<a id="pl.63.23"></a><var>63.23</var>whichever is earlier.<br/>
<a id="pl.63.24"></a><var>63.24</var>    (d) This subdivision is repealed July 1, 2013.<br/>
<a id="pl.63.25"></a><var>63.25</var><b>EFFECTIVE DATE.</b>This section is effective the day after final enactment.<br/>
<br/>
<a id="bill.4.7.0"></a><a id="pl.63.26"></a><var>63.26</var>    Sec. 7. Minnesota Statutes 2008, section 353.0161, subdivision 1, is amended to read:<br/>
<a id="pl.63.27"></a><var>63.27</var>    Subdivision 1. <b>Application.</b> This section applies to employees covered by any plan <br/>
<a id="pl.63.28"></a><var>63.28</var>specified in this chapter or chapter 353E for any period of authorized leave of absence <br/>
<a id="pl.63.29"></a><var>63.29</var>specified in section 
         <statute_ref>353.01, subdivision 16</statute_ref>, paragraph (a), clause (4) (5), for which the <br/>
<a id="pl.63.30"></a><var>63.30</var>employee obtains credit for allowable service by making payment as specified in this <br/>
<a id="pl.63.31"></a><var>63.31</var>section to the applicable fund.<br/>
<a id="pl.63.32"></a><var>63.32</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.4.8.0"></a><a id="pl.63.33"></a><var>63.33</var>    Sec. 8. Minnesota Statutes 2008, section 353.03, subdivision 3a, is amended to read:<br/>
<a id="pl.64.1"></a><var>64.1</var>    Subd. 3a. <b>Executive director.</b> (a) <b>Appointment.</b> The board shall appoint an <br/>
<a id="pl.64.2"></a><var>64.2</var>executive director on the basis of education, experience in the retirement field, and <br/>
<a id="pl.64.3"></a><var>64.3</var>leadership ability. The executive director must have had at least five years' experience in <br/>
<a id="pl.64.4"></a><var>64.4</var>an executive level management position, which has included responsibility for pensions, <br/>
<a id="pl.64.5"></a><var>64.5</var>deferred compensation, or employee benefits. The executive director serves at the pleasure <br/>
<a id="pl.64.6"></a><var>64.6</var>of the board. The salary of the executive director is as provided by section 
         <statute_ref>15A.0815</statute_ref>. <br/>
<a id="pl.64.7"></a><var>64.7</var>    (b)  <b>Duties.</b> The management of the association is vested in the executive director <br/>
<a id="pl.64.8"></a><var>64.8</var>who shall be the executive and administrative head of the association. The executive <br/>
<a id="pl.64.9"></a><var>64.9</var>director shall act as adviser to the board on all matters pertaining to the association and <br/>
<a id="pl.64.10"></a><var>64.10</var>shall also act as the secretary of the board. The executive director shall: <br/>
<a id="pl.64.11"></a><var>64.11</var>    (1) attend all meetings of the board;<br/>
<a id="pl.64.12"></a><var>64.12</var>    (2) prepare and recommend to the board appropriate rules to carry out the provisions <br/>
<a id="pl.64.13"></a><var>64.13</var>of this chapter;<br/>
<a id="pl.64.14"></a><var>64.14</var>    (3) establish and maintain an adequate system of records and accounts following <br/>
<a id="pl.64.15"></a><var>64.15</var>recognized accounting principles and controls;<br/>
<a id="pl.64.16"></a><var>64.16</var>    (4) designate, with the approval of the board, up to two persons who may serve in <br/>
<a id="pl.64.17"></a><var>64.17</var>the unclassified service and whose salaries are set in accordance with section 
         <statute_ref>43A.18, <br/>
<a id="pl.64.18"></a><var>64.18</var>subdivision 3
         </statute_ref>, appoint a confidential secretary in the unclassified service, and appoint <br/>
<a id="pl.64.19"></a><var>64.19</var>employees to carry out this chapter, who are subject to chapters 43A and 179A in the same <br/>
<a id="pl.64.20"></a><var>64.20</var>manner as are executive branch employees; <br/>
<a id="pl.64.21"></a><var>64.21</var>    (5) organize the work of the association as the director deems necessary to fulfill <br/>
<a id="pl.64.22"></a><var>64.22</var>the functions of the association, and define the duties of its employees and delegate to <br/>
<a id="pl.64.23"></a><var>64.23</var>them any powers or duties, subject to the control of, and under such conditions as, the <br/>
<a id="pl.64.24"></a><var>64.24</var>executive director may prescribe;<br/>
<a id="pl.64.25"></a><var>64.25</var>    (6) with the approval of the board, contract for the services of an approved actuary, <br/>
<a id="pl.64.26"></a><var>64.26</var>professional management services, and any other consulting services as necessary to fulfill <br/>
<a id="pl.64.27"></a><var>64.27</var>the purposes of this chapter. All contracts are subject to chapter 16C. The commissioner <br/>
<a id="pl.64.28"></a><var>64.28</var>of administration shall not approve, and the association shall not enter into, any contract <br/>
<a id="pl.64.29"></a><var>64.29</var>to provide lobbying services or legislative advocacy of any kind. Any approved actuary <br/>
<a id="pl.64.30"></a><var>64.30</var>retained by the executive director shall function as the actuarial advisor of the board and <br/>
<a id="pl.64.31"></a><var>64.31</var>the executive director and may perform actuarial valuations and experience studies to <br/>
<a id="pl.64.32"></a><var>64.32</var>supplement those performed by the actuary retained . In addition to filing requirements <br/>
<a id="pl.64.33"></a><var>64.33</var>under section 
         <statute_ref>356.214</statute_ref>., any supplemental actuarial valuations or experience studies shall <br/>
<a id="pl.64.34"></a><var>64.34</var>be filed with the executive director of the Legislative Commission on Pensions and <br/>
<a id="pl.64.35"></a><var>64.35</var>Retirement. Copies of professional management survey reports shall be transmitted to the <br/>
<a id="pl.64.36"></a><var>64.36</var>secretary of the senate, the chief clerk of the house of representatives, and the Legislative <br/>
<a id="pl.65.1"></a><var>65.1</var>Reference Library as provided by section 
         <statute_ref>3.195</statute_ref>, and to the executive director of the <br/>
<a id="pl.65.2"></a><var>65.2</var>commission at the same time as reports are furnished to the board. Only management <br/>
<a id="pl.65.3"></a><var>65.3</var>firms experienced in conducting management surveys of federal, state, or local public <br/>
<a id="pl.65.4"></a><var>65.4</var>retirement systems shall be qualified to contract with the director hereunder; <br/>
<a id="pl.65.5"></a><var>65.5</var>    (7) with the approval of the board provide in-service training for the employees <br/>
<a id="pl.65.6"></a><var>65.6</var>of the association;<br/>
<a id="pl.65.7"></a><var>65.7</var>    (8) make refunds of accumulated contributions to former members and to the <br/>
<a id="pl.65.8"></a><var>65.8</var>designated beneficiary, surviving spouse, legal representative or next of kin of deceased <br/>
<a id="pl.65.9"></a><var>65.9</var>members or deceased former members, as provided in this chapter;<br/>
<a id="pl.65.10"></a><var>65.10</var>    (9) determine the amount of the annuities and disability benefits of members covered <br/>
<a id="pl.65.11"></a><var>65.11</var>by the association and authorize payment of the annuities and benefits beginning as of <br/>
<a id="pl.65.12"></a><var>65.12</var>the dates on which the annuities and benefits begin to accrue, in accordance with the <br/>
<a id="pl.65.13"></a><var>65.13</var>provisions of this chapter;<br/>
<a id="pl.65.14"></a><var>65.14</var>    (10) pay annuities, refunds, survivor benefits, salaries, and necessary operating <br/>
<a id="pl.65.15"></a><var>65.15</var>expenses of the association;<br/>
<a id="pl.65.16"></a><var>65.16</var>    (11) prepare and submit to the board and the legislature an annual financial report <br/>
<a id="pl.65.17"></a><var>65.17</var>covering the operation of the association, as required by section 
         <statute_ref>356.20</statute_ref>; <br/>
<a id="pl.65.18"></a><var>65.18</var>    (12) prepare and submit biennial and annual budgets to the board for its approval <br/>
<a id="pl.65.19"></a><var>65.19</var>and submit the approved budgets to the Department of Finance for approval by the <br/>
<a id="pl.65.20"></a><var>65.20</var>commissioner;<br/>
<a id="pl.65.21"></a><var>65.21</var>    (13) reduce all or part of the accrued interest payable under section 
         <statute_ref>353.27, <br/>
<a id="pl.65.22"></a><var>65.22</var>subdivisions 12, 12a, and 12b
         </statute_ref>, or 
         <statute_ref>353.28, subdivision 5</statute_ref>, upon receipt of proof by the <br/>
<a id="pl.65.23"></a><var>65.23</var>association of an unreasonable processing delay or other extenuating circumstances of <br/>
<a id="pl.65.24"></a><var>65.24</var>the employing unit; and notwithstanding section 353.27, subdivision 7, may waive the <br/>
<a id="pl.65.25"></a><var>65.25</var>payment of accrued interest to the member if a credit has been taken by the employer to <br/>
<a id="pl.65.26"></a><var>65.26</var>correct an employee deduction taken in error and if the accrued interest is $10 or less. <br/>
<a id="pl.65.27"></a><var>65.27</var>The executive director shall prescribe and submit for approval by the board the conditions <br/>
<a id="pl.65.28"></a><var>65.28</var>under which such interest may be reduced; and <br/>
<a id="pl.65.29"></a><var>65.29</var>    (14) with the approval of the board, perform such other duties as may be required for <br/>
<a id="pl.65.30"></a><var>65.30</var>the administration of the association and the other provisions of this chapter and for the <br/>
<a id="pl.65.31"></a><var>65.31</var>transaction of its business.<br/>
<a id="pl.65.32"></a><var>65.32</var><b>EFFECTIVE DATE.</b>This section is effective the day after final enactment.<br/>
<br/>
<a id="bill.4.9.0"></a><a id="pl.65.33"></a><var>65.33</var>    Sec. 9. Minnesota Statutes 2008, section 353.27, subdivision 2, is amended to read:<br/>
<a id="pl.65.34"></a><var>65.34</var>    Subd. 2. <b>Employee contribution.</b> (a) For a basic member, the employee <br/>
<a id="pl.65.35"></a><var>65.35</var>contribution is the following applicable percentage of the total 9.10 percent of salary <br/>
<a id="pl.66.1"></a><var>66.1</var>amount for a "basic member" and. For a "coordinated member": coordinated member, <br/>
<a id="pl.66.2"></a><var>66.2</var>the employee contribution is six percent of salary plus any contribution rate adjustment <br/>
<a id="pl.66.3"></a><var>66.3</var>under subdivision 3b.<br/>
<table>
<col width="50px"/>
<col width="25"/>
<col width="2.5"/>
<col width="15"/>
<col width="2.5"/>
<col width="20"/>
<tr>
<td><a id="pl.66.4"></a><var>66.4</var><br/>
</td>
<td></td>
<td></td>
<td align="center">Basic Program<br/>
</td>
<td></td>
<td align="center">Coordinated Program<br/>
</td>
</tr>
<tr>
<td><a id="pl.66.5"></a><var>66.5</var><br/>
</td>
<td>Effective before January 1, 2006<br/>
</td>
<td></td>
<td align="center">9.10<br/>
</td>
<td></td>
<td align="center">5.10<br/>
</td>
</tr>
<tr>
<td><a id="pl.66.6"></a><var>66.6</var><br/>
</td>
<td>Effective January 1, 2006<br/>
</td>
<td></td>
<td align="center">9.10<br/>
</td>
<td></td>
<td align="center">5.50<br/>
</td>
</tr>
<tr>
<td><a id="pl.66.7"></a><var>66.7</var><br/>
</td>
<td>Effective January 1, 2007<br/>
</td>
<td></td>
<td align="center">9.10<br/>
</td>
<td></td>
<td align="center">5.75<br/>
</td>
</tr>
<tr>
<td><a id="pl.66.8"></a><var>66.8</var><br/>
<a id="pl.66.9"></a><var>66.9</var><br/>
<a id="pl.66.10"></a><var>66.10</var><br/>
</td>
<td valign="top">Effective January 1, 2008<br/>
</td>
<td></td>
<td align="center" valign="top">9.10<br/>
</td>
<td></td>
<td valign="top">6.00 plus any contribution <br/>
rate adjustment under <br/>
subdivision 3b<br/>
</td>
</tr>
</table><a id="pl.66.11"></a><var>66.11</var>(b) These contributions must be made by deduction from salary as defined in section <br/>
<statute_ref><a id="pl.66.12"></a><var>66.12</var>353.01, subdivision 10
         </statute_ref>, in the manner provided in subdivision 4. If any portion of a <br/>
<a id="pl.66.13"></a><var>66.13</var>member's salary is paid from other than public funds, the member's employee contribution <br/>
<a id="pl.66.14"></a><var>66.14</var>must be based on the total salary received by the member from all sources.<br/>
<a id="pl.66.15"></a><var>66.15</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.4.10.0"></a><a id="pl.66.16"></a><var>66.16</var>    Sec. 10. Minnesota Statutes 2008, section 353.27, subdivision 3, is amended to read:<br/>
<a id="pl.66.17"></a><var>66.17</var>    Subd. 3. <b>Employer contribution.</b> (a) For a basic member, the employer <br/>
<a id="pl.66.18"></a><var>66.18</var>contribution is the following applicable percentage of the total 9.10 percent of salary <br/>
<a id="pl.66.19"></a><var>66.19</var>amount for "basic members" and. For "coordinated members": a coordinated member, <br/>
<a id="pl.66.20"></a><var>66.20</var>the employer contribution is six percent of salary plus any contribution rate adjustment <br/>
<a id="pl.66.21"></a><var>66.21</var>under subdivision 3b.<br/>
<table>
<col width="50px"/>
<col width="25"/>
<col width="2.5"/>
<col width="15"/>
<col width="2.5"/>
<col width="20"/>
<tr>
<td><a id="pl.66.22"></a><var>66.22</var><br/>
</td>
<td></td>
<td></td>
<td align="center">Basic Program<br/>
</td>
<td></td>
<td align="center">Coordinated Program<br/>
</td>
</tr>
<tr>
<td><a id="pl.66.23"></a><var>66.23</var><br/>
</td>
<td>Effective before January 1, 2006<br/>
</td>
<td></td>
<td align="center">9.10<br/>
</td>
<td></td>
<td align="center">5.10<br/>
</td>
</tr>
<tr>
<td><a id="pl.66.24"></a><var>66.24</var><br/>
</td>
<td>Effective January 1, 2006<br/>
</td>
<td></td>
<td align="center">9.10<br/>
</td>
<td></td>
<td align="center">5.50<br/>
</td>
</tr>
<tr>
<td><a id="pl.66.25"></a><var>66.25</var><br/>
</td>
<td>Effective January 1, 2007<br/>
</td>
<td></td>
<td align="center">9.10<br/>
</td>
<td></td>
<td align="center">5.75<br/>
</td>
</tr>
<tr>
<td><a id="pl.66.26"></a><var>66.26</var><br/>
<a id="pl.66.27"></a><var>66.27</var><br/>
<a id="pl.66.28"></a><var>66.28</var><br/>
</td>
<td valign="top">Effective January 1, 2008<br/>
</td>
<td></td>
<td align="center" valign="top">9.10<br/>
</td>
<td></td>
<td valign="top">6.00 plus any contribution <br/>
rate adjustment under <br/>
subdivision 3b<br/>
</td>
</tr>
</table><a id="pl.66.29"></a><var>66.29</var>(b) This contribution must be made from funds available to the employing <br/>
<a id="pl.66.30"></a><var>66.30</var>subdivision by the means and in the manner provided in section 
         <statute_ref>353.28</statute_ref>.<br/>
<a id="pl.66.31"></a><var>66.31</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.4.11.0"></a><a id="pl.66.32"></a><var>66.32</var>    Sec. 11. Minnesota Statutes 2008, section 353.27, subdivision 7, is amended to read:<br/>
<a id="pl.66.33"></a><var>66.33</var>    Subd. 7. <b>Adjustment for erroneous receipts or disbursements.</b> (a) Except <br/>
<a id="pl.66.34"></a><var>66.34</var>as provided in paragraph (b), erroneous employee deductions and erroneous employer <br/>
<a id="pl.67.1"></a><var>67.1</var>contributions and additional employer contributions for a person, who otherwise does not <br/>
<a id="pl.67.2"></a><var>67.2</var>qualify for membership under this chapter, are considered:<br/>
<a id="pl.67.3"></a><var>67.3</var>(1) valid if the initial erroneous deduction began before January 1, 1990. Upon <br/>
<a id="pl.67.4"></a><var>67.4</var>determination of the error by the association, the person may continue membership in the <br/>
<a id="pl.67.5"></a><var>67.5</var>association while employed in the same position for which erroneous deductions were <br/>
<a id="pl.67.6"></a><var>67.6</var>taken, or file a written election to terminate membership and apply for a refund upon <br/>
<a id="pl.67.7"></a><var>67.7</var>termination of public service or defer an annuity under section 
         <statute_ref>353.34</statute_ref>; or <br/>
<a id="pl.67.8"></a><var>67.8</var>(2) invalid, if the initial erroneous employee deduction began on or after January 1, <br/>
<a id="pl.67.9"></a><var>67.9</var>1990. Upon determination of the error, the association shall refund all erroneous employee <br/>
<a id="pl.67.10"></a><var>67.10</var>deductions and all erroneous employer contributions as specified in paragraph (d) (e). No <br/>
<a id="pl.67.11"></a><var>67.11</var>person may claim a right to continued or past membership in the association based on <br/>
<a id="pl.67.12"></a><var>67.12</var>erroneous deductions which began on or after January 1, 1990. <br/>
<a id="pl.67.13"></a><var>67.13</var>(b) Erroneous deductions taken from the salary of a person who did not qualify <br/>
<a id="pl.67.14"></a><var>67.14</var>for membership in the association by virtue of concurrent employment before July 1, <br/>
<a id="pl.67.15"></a><var>67.15</var>1978, which required contributions to another retirement fund or relief association <br/>
<a id="pl.67.16"></a><var>67.16</var>established for the benefit of officers and employees of a governmental subdivision, are <br/>
<a id="pl.67.17"></a><var>67.17</var>invalid. Upon discovery of the error, the association shall remove all invalid service and, <br/>
<a id="pl.67.18"></a><var>67.18</var>upon termination of public service, the association shall refund all erroneous employee <br/>
<a id="pl.67.19"></a><var>67.19</var>deductions to the person, with interest as determined under section 
         <statute_ref>353.34, subdivision 2</statute_ref>, <br/>
<a id="pl.67.20"></a><var>67.20</var>and all erroneous employer contributions without interest to the employer. This paragraph <br/>
<a id="pl.67.21"></a><var>67.21</var>has both retroactive and prospective application. <br/>
<a id="pl.67.22"></a><var>67.22</var>(c) Adjustments to correct employer contributions and employee deductions taken in <br/>
<a id="pl.67.23"></a><var>67.23</var>error from amounts which are not salary under section 
         <statute_ref>353.01, subdivision 10</statute_ref>, are invalid <br/>
<a id="pl.67.24"></a><var>67.24</var>upon discovery by the association and must be refunded made as specified in paragraph <br/>
<a id="pl.67.25"></a><var>67.25</var>(d) (e). The period of adjustment must be limited to the fiscal year in which the error is <br/>
<a id="pl.67.26"></a><var>67.26</var>discovered by the association and the immediate two preceding fiscal years. <br/>
<a id="pl.67.27"></a><var>67.27</var>(d) If there is evidence of fraud or other misconduct on the part of the employee or <br/>
<a id="pl.67.28"></a><var>67.28</var>the employer, the board of trustees may authorize adjustments to the account of a member <br/>
<a id="pl.67.29"></a><var>67.29</var>or former member to correct erroneous employee deductions and employer contributions <br/>
<a id="pl.67.30"></a><var>67.30</var>on invalid salary and the recovery of any overpayments for a period longer than provided <br/>
<a id="pl.67.31"></a><var>67.31</var>for under paragraph (c).<br/>
<a id="pl.67.32"></a><var>67.32</var>(d) (e) Upon discovery of the receipt of erroneous employee deductions and <br/>
<a id="pl.67.33"></a><var>67.33</var>employer contributions under paragraph (a), clause (2), or paragraph (c), the association <br/>
<a id="pl.67.34"></a><var>67.34</var>must require the employer to discontinue the erroneous employee deductions and <br/>
<a id="pl.67.35"></a><var>67.35</var>erroneous employer contributions reported on behalf of a member. Upon discontinuation, <br/>
<a id="pl.67.36"></a><var>67.36</var>the association either must refund :<br/>
<a id="pl.68.1"></a><var>68.1</var>(1) for a member, provide a refund or credit to the employer in the amount of the <br/>
<a id="pl.68.2"></a><var>68.2</var>invalid employee deductions to the person without interest and with interest on the invalid <br/>
<a id="pl.68.3"></a><var>68.3</var>employee deductions at the rate specified under section 353.34, subdivision 2, from the <br/>
<a id="pl.68.4"></a><var>68.4</var>received date of each invalid salary transaction through the date the credit or refund is <br/>
<a id="pl.68.5"></a><var>68.5</var>made; and the employer must pay the refunded employee deductions plus interest to the <br/>
<a id="pl.68.6"></a><var>68.6</var>member;<br/>
<a id="pl.68.7"></a><var>68.7</var>(2) for a former member who:<br/>
<a id="pl.68.8"></a><var>68.8</var>(i) is not receiving a retirement annuity or benefit, return the erroneous employee <br/>
<a id="pl.68.9"></a><var>68.9</var>deductions to the former member through a refund with interest at the rate specified under <br/>
<a id="pl.68.10"></a><var>68.10</var>section 353.34, subdivision 2, from the received date of each invalid salary transaction <br/>
<a id="pl.68.11"></a><var>68.11</var>through the date the credit or refund is made; or<br/>
<a id="pl.68.12"></a><var>68.12</var>(ii) is receiving a retirement annuity or disability benefit, or a person who is <br/>
<a id="pl.68.13"></a><var>68.13</var>receiving an optional annuity or survivor benefit, for whom it has been determined an <br/>
<a id="pl.68.14"></a><var>68.14</var>overpayment must be recovered, adjust the payment amount and recover the overpayments <br/>
<a id="pl.68.15"></a><var>68.15</var>as provided under this section; and<br/>
<a id="pl.68.16"></a><var>68.16</var>(3) return  the invalid employer contributions reported on behalf of a member <br/>
<a id="pl.68.17"></a><var>68.17</var>or former member to the employer or provide by providing a credit against future <br/>
<a id="pl.68.18"></a><var>68.18</var>contributions payable by the employer for the amount of all erroneous deductions and <br/>
<a id="pl.68.19"></a><var>68.19</var>contributions. If the employing unit receives a credit under this paragraph, the employing <br/>
<a id="pl.68.20"></a><var>68.20</var>unit is responsible for refunding to the applicable employee any amount that had been <br/>
<a id="pl.68.21"></a><var>68.21</var>erroneously deducted from the person's salary. In the event that a retirement annuity or <br/>
<a id="pl.68.22"></a><var>68.22</var>disability benefit has been computed using invalid service or salary, the association must <br/>
<a id="pl.68.23"></a><var>68.23</var>adjust the annuity or benefit and recover any overpayment under subdivision 7b.<br/>
<a id="pl.68.24"></a><var>68.24</var>(e) (f) In the event that a salary warrant or check from which a deduction for the <br/>
<a id="pl.68.25"></a><var>68.25</var>retirement fund was taken has been canceled or the amount of the warrant or check <br/>
<a id="pl.68.26"></a><var>68.26</var>returned to the funds of the department making the payment, a refund of the sum <br/>
<a id="pl.68.27"></a><var>68.27</var>deducted, or any portion of it that is required to adjust the deductions, must be made <br/>
<a id="pl.68.28"></a><var>68.28</var>to the department or institution.<br/>
<a id="pl.68.29"></a><var>68.29</var>(f) Any refund to a member under this subdivision that is reasonably determined <br/>
<a id="pl.68.30"></a><var>68.30</var>to cause the plan to fail to be a qualified plan under section 401(a) of the federal <br/>
<a id="pl.68.31"></a><var>68.31</var>Internal Revenue Code, as amended, may not be refunded and instead must be credited <br/>
<a id="pl.68.32"></a><var>68.32</var>against future contributions payable by the employer. The employer receiving the <br/>
<a id="pl.68.33"></a><var>68.33</var>credit is responsible for refunding to the applicable employee any amount that had been <br/>
<a id="pl.68.34"></a><var>68.34</var>erroneously deducted from the person's salary.<br/>
<a id="pl.68.35"></a><var>68.35</var>(g) If the accrual date of any retirement annuity, survivor benefit, or disability benefit <br/>
<a id="pl.68.36"></a><var>68.36</var>is within the limitation period specified in paragraph (c), and an overpayment has resulted <br/>
<a id="pl.69.1"></a><var>69.1</var>by using invalid service or salary, or due to any erroneous calculation procedure, the <br/>
<a id="pl.69.2"></a><var>69.2</var>association must recalculate the annuity or benefit payable and recover any overpayment <br/>
<a id="pl.69.3"></a><var>69.3</var>as provided under subdivision 7b.<br/>
<a id="pl.69.4"></a><var>69.4</var>(h) Notwithstanding the provisions of this subdivision, the association may apply <br/>
<a id="pl.69.5"></a><var>69.5</var>the Revenue Procedures defined in the federal Internal Revenue Service Employee Plans <br/>
<a id="pl.69.6"></a><var>69.6</var>Compliance Resolution System and not issue a refund of erroneous employee deductions <br/>
<a id="pl.69.7"></a><var>69.7</var>and employer contributions or not recover a small overpayment of benefits if the cost to <br/>
<a id="pl.69.8"></a><var>69.8</var>correct the error would exceed the amount of the member refund or overpayment.<br/>
<a id="pl.69.9"></a><var>69.9</var>(i) Any fees or penalties assessed by the federal Internal Revenue Service for any <br/>
<a id="pl.69.10"></a><var>69.10</var>failure by an employer to follow the statutory requirements for reporting eligible members <br/>
<a id="pl.69.11"></a><var>69.11</var>and salary must be paid by the employer.<br/>
<a id="pl.69.12"></a><var>69.12</var><b>EFFECTIVE DATE.</b>(a) This section is effective the day following enactment. <br/>
<a id="pl.69.13"></a><var>69.13</var>(b) The interest required on deductions in error as provided in paragraph (e) must <br/>
<a id="pl.69.14"></a><var>69.14</var>be applied to any refunds paid on or after June 1, 2009.<br/>
<br/>
<a id="bill.4.12.0"></a><a id="pl.69.15"></a><var>69.15</var>    Sec. 12. Minnesota Statutes 2008, section 353.27, subdivision 7b, is amended to read:<br/>
<a id="pl.69.16"></a><var>69.16</var>    Subd. 7b. <b>Recovery of </b><b>overpayments</b><b> to members</b><b>.</b> (a) In the event of an <br/>
<a id="pl.69.17"></a><var>69.17</var>overpayment to a member, retiree, beneficiary, or other person, the executive director shall <br/>
<a id="pl.69.18"></a><var>69.18</var>recover the overpayment by suspending or reducing the payment of a retirement annuity, <br/>
<a id="pl.69.19"></a><var>69.19</var>refund, disability benefit, survivor benefit, or optional annuity payable to the applicable <br/>
<a id="pl.69.20"></a><var>69.20</var>person or the person's estate, whichever applies, under this chapter until all outstanding <br/>
<a id="pl.69.21"></a><var>69.21</var>money has been recovered determines that an overpaid annuity or benefit that is the result <br/>
<a id="pl.69.22"></a><var>69.22</var>of invalid salary included in the average salary used to calculate the payment amount must <br/>
<a id="pl.69.23"></a><var>69.23</var>be recovered, the association must determine the amount of the employee deductions <br/>
<a id="pl.69.24"></a><var>69.24</var>taken in error on the invalid salary, with interest determined in the manner provided for a <br/>
<a id="pl.69.25"></a><var>69.25</var>former member under subdivision 7, paragraph (e), clause (2), item (i), and must subtract <br/>
<a id="pl.69.26"></a><var>69.26</var>that amount from the total annuity or benefit overpayment, and the remaining balance of <br/>
<a id="pl.69.27"></a><var>69.27</var>the overpaid annuity or benefit, if any, must be recovered.<br/>
<a id="pl.69.28"></a><var>69.28</var>(b) If the invalid employee deductions plus interest exceed the amount of the <br/>
<a id="pl.69.29"></a><var>69.29</var>overpaid benefits, the balance must be refunded to the person to whom the benefit or <br/>
<a id="pl.69.30"></a><var>69.30</var>annuity is being paid.<br/>
<a id="pl.69.31"></a><var>69.31</var>(c) Any invalid employer contributions reported on the invalid salary must be <br/>
<a id="pl.69.32"></a><var>69.32</var>credited to the employer as provided in subdivision 7, paragraph (e).<br/>
<a id="pl.69.33"></a><var>69.33</var>(d) If a member or former member, who is receiving a retirement annuity or <br/>
<a id="pl.69.34"></a><var>69.34</var>disability benefit for which an overpayment is being recovered, dies before recovery of <br/>
<a id="pl.69.35"></a><var>69.35</var>the overpayment is completed and a joint and survivor optional annuity is payable, the <br/>
<a id="pl.70.1"></a><var>70.1</var>remaining balance of the overpaid annuity or benefit must continue to be recovered from <br/>
<a id="pl.70.2"></a><var>70.2</var>the payment to the optional annuity beneficiary.<br/>
<a id="pl.70.3"></a><var>70.3</var>(e) If the association finds that a refund has been overpaid to a former member, <br/>
<a id="pl.70.4"></a><var>70.4</var>beneficiary or other person, the amount of the overpayment must be recovered.<br/>
<a id="pl.70.5"></a><var>70.5</var>(f) The board of trustees shall adopt policies directing the period of time and manner <br/>
<a id="pl.70.6"></a><var>70.6</var>for the collection of any overpaid retirement or optional annuity, and survivor or disability <br/>
<a id="pl.70.7"></a><var>70.7</var>benefit, or a refund that the executive director determines must be recovered as provided <br/>
<a id="pl.70.8"></a><var>70.8</var>under this section.<br/>
<a id="pl.70.9"></a><var>70.9</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.4.13.0"></a><a id="pl.70.10"></a><var>70.10</var>    Sec. 13. Minnesota Statutes 2008, section 353.33, subdivision 1, is amended to read:<br/>
<a id="pl.70.11"></a><var>70.11</var>    Subdivision 1. <b>Age, service, and salary requirements.</b> A coordinated or basic <br/>
<a id="pl.70.12"></a><var>70.12</var>member who has at least three years of allowable service and becomes totally and <br/>
<a id="pl.70.13"></a><var>70.13</var>permanently disabled before normal retirement age, and a basic member who has at least <br/>
<a id="pl.70.14"></a><var>70.14</var>three years of allowable service and who becomes totally and permanently disabled, upon <br/>
<a id="pl.70.15"></a><var>70.15</var>application as defined under section 
         <statute_ref>353.031</statute_ref>, is entitled to a disability benefit in an amount <br/>
<a id="pl.70.16"></a><var>70.16</var>determined under subdivision 3. If the disabled person's public service has terminated <br/>
<a id="pl.70.17"></a><var>70.17</var>at any time, at least two of the required three years of allowable service must have been <br/>
<a id="pl.70.18"></a><var>70.18</var>rendered after last becoming an active member. <br/>
<a id="pl.70.19"></a><var>70.19</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.4.14.0"></a><a id="pl.70.20"></a><var>70.20</var>    Sec. 14. Minnesota Statutes 2008, section 353.33, is amended by adding a subdivision <br/>
<a id="pl.70.21"></a><var>70.21</var>to read:<br/>
<a id="pl.70.22"></a><var>70.22</var>    Subd. 1a. <b>Benefit restriction.</b> No person is entitled to receive disability benefits <br/>
<a id="pl.70.23"></a><var>70.23</var>and a retirement annuity at the same time.<br/>
<a id="pl.70.24"></a><var>70.24</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.4.15.0"></a><a id="pl.70.25"></a><var>70.25</var>    Sec. 15. Minnesota Statutes 2008, section 353.33, subdivision 11, is amended to read:<br/>
<a id="pl.70.26"></a><var>70.26</var>    Subd. 11. <b>Coordinated member </b><b>disabilitant transfer to </b><b>retirement status.</b> No <br/>
<a id="pl.70.27"></a><var>70.27</var>person is entitled to receive disability benefits and a retirement annuity at the same time. <br/>
<a id="pl.70.28"></a><var>70.28</var>The disability benefits paid to a coordinated member must terminate when the person <br/>
<a id="pl.70.29"></a><var>70.29</var>reaches normal retirement age. If the coordinated member is still totally and permanently <br/>
<a id="pl.70.30"></a><var>70.30</var>disabled upon attaining normal retirement age, the coordinated member is deemed to be on <br/>
<a id="pl.70.31"></a><var>70.31</var>retirement status. If an optional annuity is elected under subdivision 3a, the coordinated <br/>
<a id="pl.70.32"></a><var>70.32</var>member shall receive an annuity under the terms of the optional annuity previously <br/>
<a id="pl.71.1"></a><var>71.1</var>elected, or, if an optional annuity is not elected under subdivision 3a, the coordinated <br/>
<a id="pl.71.2"></a><var>71.2</var>member may elect to receive a normal retirement annuity under section 
         <statute_ref>353.29</statute_ref> or an <br/>
<a id="pl.71.3"></a><var>71.3</var>annuity equal to the disability benefit paid before the coordinated member reaches normal <br/>
<a id="pl.71.4"></a><var>71.4</var>retirement age, whichever amount is greater, or elect to receive an optional annuity <br/>
<a id="pl.71.5"></a><var>71.5</var>under section 
         <statute_ref>353.30, subdivision 3</statute_ref>. The annuity of a disabled coordinated member who <br/>
<a id="pl.71.6"></a><var>71.6</var>attains normal retirement age must be computed under the law in effect upon attainment <br/>
<a id="pl.71.7"></a><var>71.7</var>of normal retirement age. Election of an optional annuity must be made before the <br/>
<a id="pl.71.8"></a><var>71.8</var>coordinated member attains normal retirement age. If an optional annuity is elected, the <br/>
<a id="pl.71.9"></a><var>71.9</var>election is effective on the date on which the person attains normal retirement age and <br/>
<a id="pl.71.10"></a><var>71.10</var>the optional annuity begins to accrue on the first day of the month next following the <br/>
<a id="pl.71.11"></a><var>71.11</var>month in which the person attains that age. <br/>
<a id="pl.71.12"></a><var>71.12</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.4.16.0"></a><a id="pl.71.13"></a><var>71.13</var>    Sec. 16. Minnesota Statutes 2008, section 353.33, subdivision 12, is amended to read:<br/>
<a id="pl.71.14"></a><var>71.14</var>    Subd. 12. <b>Basic </b><b>disability</b><b> </b><b>disabilitant transfer to retirement status; </b><b>survivor </b><br/>
<a id="pl.71.15"></a><var>71.15</var><b>benefits.</b> (a) If a basic member who is receiving a disability benefit under subdivision 3:<br/>
<a id="pl.71.16"></a><var>71.16</var>(1) dies before attaining age 65 or within five years of the effective date of the <br/>
<a id="pl.71.17"></a><var>71.17</var>disability, whichever is later, the surviving spouse is entitled to receive a survivor <br/>
<a id="pl.71.18"></a><var>71.18</var>benefit under section 
         <statute_ref>353.31</statute_ref>, unless and any dependent child or children are entitled to <br/>
<a id="pl.71.19"></a><var>71.19</var>dependent child benefits under section 353.31, subdivision 1b, paragraph (b). If there are <br/>
<a id="pl.71.20"></a><var>71.20</var>no dependent children, in lieu of the survivor benefit specified under section 353.31, the <br/>
<a id="pl.71.21"></a><var>71.21</var>surviving spouse elected may elect to receive a refund under section 
         <statute_ref>353.32, subdivision 1</statute_ref>;.<br/>
<a id="pl.71.22"></a><var>71.22</var>(2) (b) If a basic member who is receiving a disability benefit under subdivision 3 is <br/>
<a id="pl.71.23"></a><var>71.23</var>living at age 65 or five years after the effective date of the disability, whichever is later, the <br/>
<a id="pl.71.24"></a><var>71.24</var>basic member may continue to receive a normal retirement annuity equal to the disability <br/>
<a id="pl.71.25"></a><var>71.25</var>benefit previously received, adjusted for the amount no longer payable under subdivision <br/>
<a id="pl.71.26"></a><var>71.26</var>3, paragraph (b), or the person may elect a joint and survivor optional annuity under <br/>
<a id="pl.71.27"></a><var>71.27</var>section 
         <statute_ref>353.31, subdivision 1b</statute_ref>. The election of the joint and survivor optional annuity <br/>
<a id="pl.71.28"></a><var>71.28</var>must occur within 90 days of attaining age 65 or of reaching the five-year anniversary <br/>
<a id="pl.71.29"></a><var>71.29</var>of the effective date of the disability benefit, whichever is later. The optional annuity <br/>
<a id="pl.71.30"></a><var>71.30</var>takes effect on the first day of the month following the month in which the person attains <br/>
<a id="pl.71.31"></a><var>71.31</var>age 65 or reaches the five-year anniversary of the effective date of the disability benefit, <br/>
<a id="pl.71.32"></a><var>71.32</var>whichever is later; or.<br/>
<a id="pl.71.33"></a><var>71.33</var>(3) if there is a dependent child or children under clause (1) or (2), the dependent <br/>
<a id="pl.71.34"></a><var>71.34</var>child is entitled to a dependent child benefit under section 
<statute_ref>353.31, subdivision 1b</statute_ref>, <br/>
<a id="pl.71.35"></a><var>71.35</var>paragraph (b).<br/>
<a id="pl.72.1"></a><var>72.1</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.4.17.0"></a><a id="pl.72.2"></a><var>72.2</var>    Sec. 17. Minnesota Statutes 2008, section 353.65, subdivision 2, is amended to read:<br/>
<a id="pl.72.3"></a><var>72.3</var>    Subd. 2. <b>Employee contribution </b><b>rate</b><b>.</b> (a) The employee contribution is an amount <br/>
<a id="pl.72.4"></a><var>72.4</var>equal to the 9.4 percent of the total salary of the member specified in paragraph (b). This <br/>
<a id="pl.72.5"></a><var>72.5</var>contribution must be made by deduction from salary in the manner provided in subdivision <br/>
<a id="pl.72.6"></a><var>72.6</var>4. Where any portion of a member's salary is paid from other than public funds, the <br/>
<a id="pl.72.7"></a><var>72.7</var>member's employee contribution is based on the total salary received from all sources.<br/>
<a id="pl.72.8"></a><var>72.8</var>(b) For calendar year 2006, the employee contribution rate is 7.0 percent. For <br/>
<a id="pl.72.9"></a><var>72.9</var>calendar year 2007, the employee contribution rate is 7.8 percent. For calendar year 2008, <br/>
<a id="pl.72.10"></a><var>72.10</var>the employee contribution rate is 8.6 percent. For calendar year 2009 and thereafter, the <br/>
<a id="pl.72.11"></a><var>72.11</var>employee contribution rate is 9.4 percent.<br/>
<a id="pl.72.12"></a><var>72.12</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.4.18.0"></a><a id="pl.72.13"></a><var>72.13</var>    Sec. 18. Minnesota Statutes 2008, section 353.65, subdivision 3, is amended to read:<br/>
<a id="pl.72.14"></a><var>72.14</var>    Subd. 3. <b>Employer contribution </b><b>rate</b><b>.</b> (a) The employer contribution shall be an <br/>
<a id="pl.72.15"></a><var>72.15</var>amount equal to the is 14.1 percent of the total salary of every the member as specified in <br/>
<a id="pl.72.16"></a><var>72.16</var>paragraph (b). This contribution shall must be made from funds available to the employing <br/>
<a id="pl.72.17"></a><var>72.17</var>subdivision by the means and in the manner provided in section 
         <statute_ref>353.28</statute_ref>.<br/>
<a id="pl.72.18"></a><var>72.18</var>(b) For calendar year 2006, the employer contribution rate is 10.5 percent. For <br/>
<a id="pl.72.19"></a><var>72.19</var>calendar year 2007, the employer contribution rate is 11.7 percent. For calendar year 2008, <br/>
<a id="pl.72.20"></a><var>72.20</var>the employer contribution rate is 12.9 percent. For calendar year 2009 and thereafter, the <br/>
<a id="pl.72.21"></a><var>72.21</var>employer contribution rate is 14.1 percent.<br/>
<a id="pl.72.22"></a><var>72.22</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.4.19.0"></a><a id="pl.72.23"></a><var>72.23</var>    Sec. 19. Minnesota Statutes 2008, section 353A.08, subdivision 6a, is amended to read:<br/>
<a id="pl.72.24"></a><var>72.24</var>    Subd. 6a. <b>Military service contribution and refund.</b> A person who was an active <br/>
<a id="pl.72.25"></a><var>72.25</var>member of a local police or firefighters relief association upon its consolidation with the <br/>
<a id="pl.72.26"></a><var>72.26</var>public employees retirement association, and who was otherwise eligible for automatic <br/>
<a id="pl.72.27"></a><var>72.27</var>service credit for military service under Minnesota Statutes 2000, section 
         <statute_ref>423.57</statute_ref>, and <br/>
<a id="pl.72.28"></a><var>72.28</var>who has not elected the type of benefit coverage provided by the public employees <br/>
<a id="pl.72.29"></a><var>72.29</var>police and fire fund at the time of consolidation, must make employee contributions <br/>
<a id="pl.72.30"></a><var>72.30</var>under section 
         <statute_ref>353.01, subdivision 16</statute_ref>, paragraph (h) (a), clause (8), to receive allowable <br/>
<a id="pl.72.31"></a><var>72.31</var>service credit from the association for a military service leave after the effective date of the <br/>
<a id="pl.72.32"></a><var>72.32</var>consolidation. A person who later elects, under subdivision 3, to retain benefit coverage <br/>
<a id="pl.73.1"></a><var>73.1</var>under the bylaws of the local relief association is eligible for a refund from the association <br/>
<a id="pl.73.2"></a><var>73.2</var>at the time of retirement. The association shall refund the employee contributions <br/>
<a id="pl.73.3"></a><var>73.3</var>plus interest at the rate of six percent, compounded quarterly, from the date on which <br/>
<a id="pl.73.4"></a><var>73.4</var>contributions were made until the first day of the month in which the refund is paid. The <br/>
<a id="pl.73.5"></a><var>73.5</var>employer shall receive a refund of the employer contributions. The association shall not <br/>
<a id="pl.73.6"></a><var>73.6</var>pay a refund to a person who later elects, under subdivision 3, the type of benefit coverage <br/>
<a id="pl.73.7"></a><var>73.7</var>provided by the public employees police and fire fund or to the person's employer. <br/>
<a id="pl.73.8"></a><var>73.8</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.4.20.0"></a><a id="pl.73.9"></a><var>73.9</var>    Sec. 20. Minnesota Statutes 2008, section 353F.02, subdivision 4, is amended to read:<br/>
<a id="pl.73.10"></a><var>73.10</var>    Subd. 4. <b>Medical facility.</b> "Medical facility" means:<br/>
<a id="pl.73.11"></a><var>73.11</var>    (1) Bridges Medical Services;<br/>
<a id="pl.73.12"></a><var>73.12</var>    (2) the City of Cannon Falls Hospital;<br/>
<a id="pl.73.13"></a><var>73.13</var>    (3) Clearwater County Memorial Hospital doing business as Clearwater Health <br/>
<a id="pl.73.14"></a><var>73.14</var>Services in Bagley;<br/>
<a id="pl.73.15"></a><var>73.15</var>    (4) the Dassel Lakeside Community Home;<br/>
<a id="pl.73.16"></a><var>73.16</var>    (5) the Fair Oaks Lodge, Wadena;<br/>
<a id="pl.73.17"></a><var>73.17</var>    (6) the Glencoe Area Health Center;<br/>
<a id="pl.73.18"></a><var>73.18</var>    (7) Hutchinson Area Health Care;<br/>
<a id="pl.73.19"></a><var>73.19</var>    (8) the Lakefield Nursing Home;<br/>
<a id="pl.73.20"></a><var>73.20</var>    (9) the Lakeview Nursing Home in Gaylord;<br/>
<a id="pl.73.21"></a><var>73.21</var>    (10) the Luverne Public Hospital;<br/>
<a id="pl.73.22"></a><var>73.22</var>    (11) the Oakland Park Nursing Home;<br/>
<a id="pl.73.23"></a><var>73.23</var>    (12) the RenVilla Nursing Home;<br/>
<a id="pl.73.24"></a><var>73.24</var>    (13) the Rice Memorial Hospital in Willmar, with respect to the Department of <br/>
<a id="pl.73.25"></a><var>73.25</var>Radiology and the Department of Radiation/Oncology;<br/>
<a id="pl.73.26"></a><var>73.26</var>(14) the St. Peter Community Health Care Center;<br/>
<a id="pl.73.27"></a><var>73.27</var>    (15) the Waconia-Ridgeview Medical Center; and<br/>
<a id="pl.73.28"></a><var>73.28</var>(16) the Weiner Memorial Medical Center, Inc.; and<br/>
<a id="pl.73.29"></a><var>73.29</var>(17) the Worthington Regional Hospital.<br/>
<a id="pl.73.30"></a><var>73.30</var><b>EFFECTIVE DATE.</b>This section is effective upon compliance with Minnesota <br/>
<a id="pl.73.31"></a><var>73.31</var>Statutes, section 353F.02, subdivision 3.<br/>
<br/>
<a id="bill.4.21.0"></a><a id="pl.73.32"></a><var>73.32</var>    Sec. 21. Minnesota Statutes 2008, section 354.05, is amended by adding a subdivision <br/>
<a id="pl.73.33"></a><var>73.33</var>to read:<br/>
<a id="pl.74.1"></a><var>74.1</var>    Subd. 42. <b>Fiscal year.</b> The fiscal year of the association begins on July 1 of each <br/>
<a id="pl.74.2"></a><var>74.2</var>calendar year and ends on June 30 of the following calendar year.<br/>
<a id="pl.74.3"></a><var>74.3</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.4.22.0"></a><a id="pl.74.4"></a><var>74.4</var>    Sec. 22. Minnesota Statutes 2008, section 354.42, subdivision 2, is amended to read:<br/>
<a id="pl.74.5"></a><var>74.5</var>    Subd. 2. <b>Employee</b><b> contribution</b><b>.</b> (a) For a basic member, the employee <br/>
<a id="pl.74.6"></a><var>74.6</var>contribution to the fund is an amount equal to the following percentage 9.0 percent of the <br/>
<a id="pl.74.7"></a><var>74.7</var>member's salary of a member:. For a coordinated member, the employee contribution is <br/>
<a id="pl.74.8"></a><var>74.8</var>5.5 percent of the member's salary.<br/>
<a id="pl.74.9"></a><var>74.9</var>(1) after July 1, 2006, for a teacher employed by Special School District No. 1, <br/>
<a id="pl.74.10"></a><var>74.10</var>Minneapolis, 5.5 percent if the teacher is a coordinated member, and 9.0 percent if the <br/>
<a id="pl.74.11"></a><var>74.11</var>teacher is a basic member;<br/>
<a id="pl.74.12"></a><var>74.12</var>(2) for every other teacher, after July 1, 2006, 5.5 percent if the teacher is a <br/>
<a id="pl.74.13"></a><var>74.13</var>coordinated member and 9.0 percent if the teacher is a basic member.<br/>
<a id="pl.74.14"></a><var>74.14</var>(b) This contribution must be made by deduction from salary. Where any portion <br/>
<a id="pl.74.15"></a><var>74.15</var>of a member's salary is paid from other than public funds, the member's employee <br/>
<a id="pl.74.16"></a><var>74.16</var>contribution must be based on the entire salary received.<br/>
<a id="pl.74.17"></a><var>74.17</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.4.23.0"></a><a id="pl.74.18"></a><var>74.18</var>    Sec. 23. Minnesota Statutes 2008, section 354.44, subdivision 4, is amended to read:<br/>
<a id="pl.74.19"></a><var>74.19</var>    Subd. 4. <b>Retirement annuity accrual date.</b> (a) An annuity payment begins to <br/>
<a id="pl.74.20"></a><var>74.20</var>accrue, provided that the age and service requirements under subdivision 1 are satisfied, <br/>
<a id="pl.74.21"></a><var>74.21</var>after the termination of teaching service, or after the application for retirement has been <br/>
<a id="pl.74.22"></a><var>74.22</var>filed with the board, whichever is later executive director, as follows:<br/>
<a id="pl.74.23"></a><var>74.23</var>(1) on the 16th day of after the month of termination or filing if the termination or <br/>
<a id="pl.74.24"></a><var>74.24</var>filing occurs on or before the 15th day of the month of teaching service;<br/>
<a id="pl.74.25"></a><var>74.25</var>(2) on the first day of the month following the month of termination or filing if <br/>
<a id="pl.74.26"></a><var>74.26</var>the termination or filing occurs on or after the 16th day of the month day of receipt of <br/>
<a id="pl.74.27"></a><var>74.27</var>application if the application is filed with the executive director after the six-month period <br/>
<a id="pl.74.28"></a><var>74.28</var>that occurs immediately following the termination of teaching service;<br/>
<a id="pl.74.29"></a><var>74.29</var>(3) on July 1 for all school principals and other administrators who receive a full <br/>
<a id="pl.74.30"></a><var>74.30</var>annual contract salary during the fiscal year for performance of a full year's contract <br/>
<a id="pl.74.31"></a><var>74.31</var>duties; or<br/>
<a id="pl.75.1"></a><var>75.1</var>(4) a later date to be either the first or the 16th day of a month occurring within the <br/>
<a id="pl.75.2"></a><var>75.2</var>six-month period immediately following the termination of teaching service as specified <br/>
<a id="pl.75.3"></a><var>75.3</var>under paragraph (b) by the member.<br/>
<a id="pl.75.4"></a><var>75.4</var>(b) (4) if an application for retirement is filed with the board executive director <br/>
<a id="pl.75.5"></a><var>75.5</var>during the six-month period that occurs immediately following the termination of teaching <br/>
<a id="pl.75.6"></a><var>75.6</var>service, the annuity may begin to accrue as if the application for retirement had been filed <br/>
<a id="pl.75.7"></a><var>75.7</var>with the board on the date teaching service terminated or a later date under paragraph <br/>
<a id="pl.75.8"></a><var>75.8</var>(a), clause (4).<br/>
<a id="pl.75.9"></a><var>75.9</var>(b) A member, or a person authorized to act on behalf of the member, may specify a <br/>
<a id="pl.75.10"></a><var>75.10</var>different date of retirement from that determined in paragraph (a), as follows:<br/>
<a id="pl.75.11"></a><var>75.11</var>(1) if the application is filed on or before the date of termination of teaching service, <br/>
<a id="pl.75.12"></a><var>75.12</var>the accrual date may be a date no earlier than the day after the termination of teaching <br/>
<a id="pl.75.13"></a><var>75.13</var>service and no later than six months after the termination date; or<br/>
<a id="pl.75.14"></a><var>75.14</var>(2) if the application is filed during the six-month period that occurs immediately <br/>
<a id="pl.75.15"></a><var>75.15</var>following the termination of teaching service, the accrual date may begin to accrue <br/>
<a id="pl.75.16"></a><var>75.16</var>retroactively, but no earlier than the day after teaching service terminated and no later <br/>
<a id="pl.75.17"></a><var>75.17</var>than six months after the termination date.<br/>
<a id="pl.75.18"></a><var>75.18</var><b>EFFECTIVE DATE.</b>This section is effective January 1, 2010.<br/>
<br/>
<a id="bill.4.24.0"></a><a id="pl.75.19"></a><var>75.19</var>    Sec. 24. Minnesota Statutes 2008, section 354.44, subdivision 5, is amended to read:<br/>
<a id="pl.75.20"></a><var>75.20</var>    Subd. 5. <b>Resumption of teaching service after retirement.</b> (a) Any person who <br/>
<a id="pl.75.21"></a><var>75.21</var>retired under the provisions of this chapter and has thereafter resumed teaching in any <br/>
<a id="pl.75.22"></a><var>75.22</var>employer unit to which this chapter applies is eligible to continue to receive payments in <br/>
<a id="pl.75.23"></a><var>75.23</var>accordance with the annuity except that all or a portion of the annuity payments must be <br/>
<a id="pl.75.24"></a><var>75.24</var>deferred during the calendar year immediately following any calendar the fiscal year in <br/>
<a id="pl.75.25"></a><var>75.25</var>which the person's salary from the teaching service is in an amount greater than $46,000. <br/>
<a id="pl.75.26"></a><var>75.26</var>The amount of the annuity deferral is one-half of the salary amount in excess of $46,000 <br/>
<a id="pl.75.27"></a><var>75.27</var>and must be deducted from the annuity payable for the calendar year immediately <br/>
<a id="pl.75.28"></a><var>75.28</var>following the calendar fiscal year in which the excess amount was earned. <br/>
<a id="pl.75.29"></a><var>75.29</var>    (b) If the person is retired for only a fractional part of the calendar fiscal year during <br/>
<a id="pl.75.30"></a><var>75.30</var>the initial year of retirement, the maximum reemployment salary exempt from triggering a <br/>
<a id="pl.75.31"></a><var>75.31</var>deferral as specified in this subdivision must be prorated for that calendar fiscal year.<br/>
<a id="pl.75.32"></a><var>75.32</var>    (c) After a person has reached the Social Security normal retirement age, no deferral <br/>
<a id="pl.75.33"></a><var>75.33</var>requirement is applicable regardless of the amount of salary.<br/>
<a id="pl.75.34"></a><var>75.34</var>    (d) The amount of the retirement annuity deferral must be handled or disposed <br/>
<a id="pl.75.35"></a><var>75.35</var>of as provided in section 
         <statute_ref>356.47</statute_ref>. <br/>
<a id="pl.76.1"></a><var>76.1</var>    (e) For the purpose of this subdivision, salary from teaching service includes, but is <br/>
<a id="pl.76.2"></a><var>76.2</var>not limited to:<br/>
<a id="pl.76.3"></a><var>76.3</var>    (1) all income for services performed as a consultant or an independent contractor <br/>
<a id="pl.76.4"></a><var>76.4</var>for an employer unit covered by the provisions of this chapter; and<br/>
<a id="pl.76.5"></a><var>76.5</var>    (2) the greater of either the income received or an amount based on the rate paid <br/>
<a id="pl.76.6"></a><var>76.6</var>with respect to an administrative position, consultant, or independent contractor in an <br/>
<a id="pl.76.7"></a><var>76.7</var>employer unit with approximately the same number of pupils and at the same level as the <br/>
<a id="pl.76.8"></a><var>76.8</var>position occupied by the person who resumes teaching service.<br/>
<a id="pl.76.9"></a><var>76.9</var><b>EFFECTIVE DATE.</b>This section is effective January 1, 2010.<br/>
<br/>
<a id="bill.4.25.0"></a><a id="pl.76.10"></a><var>76.10</var>    Sec. 25. Minnesota Statutes 2008, section 354.47, subdivision 1, is amended to read:<br/>
<a id="pl.76.11"></a><var>76.11</var>    Subdivision 1. <b>Death before retirement.</b> (a) If a member dies before retirement <br/>
<a id="pl.76.12"></a><var>76.12</var>and is covered under section 
         <statute_ref>354.44, subdivision 2</statute_ref>, and neither an optional annuity, nor a <br/>
<a id="pl.76.13"></a><var>76.13</var>reversionary annuity, nor a benefit under section 
         <statute_ref>354.46, subdivision 1</statute_ref>, is payable to the <br/>
<a id="pl.76.14"></a><var>76.14</var>survivors if the member was a basic member, then the surviving spouse, or if there is no <br/>
<a id="pl.76.15"></a><var>76.15</var>surviving spouse, the designated beneficiary is entitled to an amount equal to the member's <br/>
<a id="pl.76.16"></a><var>76.16</var>accumulated deductions with interest credited to the account of the member to the date of <br/>
<a id="pl.76.17"></a><var>76.17</var>death of the member. If the designated beneficiary is a minor, interest must be credited to <br/>
<a id="pl.76.18"></a><var>76.18</var>the date the beneficiary reaches legal age, or the date of receipt, whichever is earlier.  <br/>
<a id="pl.76.19"></a><var>76.19</var>(b) If a member dies before retirement and is covered under section 
         <statute_ref>354.44, <br/>
<a id="pl.76.20"></a><var>76.20</var>subdivision 6
         </statute_ref>, and neither an optional annuity, nor reversionary annuity, nor the benefit <br/>
<a id="pl.76.21"></a><var>76.21</var>described in section 
         <statute_ref>354.46, subdivision 1</statute_ref>, is payable to the survivors if the member <br/>
<a id="pl.76.22"></a><var>76.22</var>was a basic member, then the surviving spouse, or if there is no surviving spouse, <br/>
<a id="pl.76.23"></a><var>76.23</var>the designated beneficiary is entitled to an amount equal to the member's accumulated <br/>
<a id="pl.76.24"></a><var>76.24</var>deductions credited to the account of the member as of June 30, 1957, and from July 1, <br/>
<a id="pl.76.25"></a><var>76.25</var>1957, to the date of death of the member, the member's accumulated deductions plus <br/>
<a id="pl.76.26"></a><var>76.26</var>six percent interest compounded annually.  <br/>
<a id="pl.76.27"></a><var>76.27</var>(c) If the designated beneficiary under paragraph (b) is a minor, any interest credited <br/>
<a id="pl.76.28"></a><var>76.28</var>under that paragraph must be credited to the date the beneficiary reaches legal age, or <br/>
<a id="pl.76.29"></a><var>76.29</var>the date of receipt, whichever is earlier.<br/>
<a id="pl.76.30"></a><var>76.30</var>(d) The amount of any refund payable under this subdivision must be reduced by <br/>
<a id="pl.76.31"></a><var>76.31</var>any permanent disability payment under section 354.48 received by the member.<br/>
<a id="pl.76.32"></a><var>76.32</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.4.26.0"></a><a id="pl.76.33"></a><var>76.33</var>    Sec. 26. Minnesota Statutes 2008, section 354.48, subdivision 4, is amended to read:<br/>
<a id="pl.77.1"></a><var>77.1</var>    Subd. 4. <b>Determination by executive director.</b> (a) The executive director shall <br/>
<a id="pl.77.2"></a><var>77.2</var>have the member examined by at least two licensed physicians, licensed chiropractors, <br/>
<a id="pl.77.3"></a><var>77.3</var>or licensed psychologists selected by the medical adviser.<br/>
<a id="pl.77.4"></a><var>77.4</var>(b) These physicians, chiropractors, or psychologists with respect to a mental <br/>
<a id="pl.77.5"></a><var>77.5</var>impairment, shall make written reports to the executive director concerning the member's <br/>
<a id="pl.77.6"></a><var>77.6</var>disability, including expert opinions as to whether or not the member is permanently and <br/>
<a id="pl.77.7"></a><var>77.7</var>totally disabled within the meaning of section 
         <statute_ref>354.05, subdivision 14</statute_ref>. <br/>
<a id="pl.77.8"></a><var>77.8</var>(c) The executive director shall also obtain written certification from the last <br/>
<a id="pl.77.9"></a><var>77.9</var>employer stating whether or not the member was separated from service because of <br/>
<a id="pl.77.10"></a><var>77.10</var>a disability which would reasonably prevent further service to the employer and as a <br/>
<a id="pl.77.11"></a><var>77.11</var>consequence the member is not entitled to compensation from the employer.<br/>
<a id="pl.77.12"></a><var>77.12</var>(d) If, upon the consideration of the reports of the physicians, chiropractors, or <br/>
<a id="pl.77.13"></a><var>77.13</var>psychologists and any other evidence presented by the member or by others interested <br/>
<a id="pl.77.14"></a><var>77.14</var>therein, the executive director finds that the member is totally and permanently disabled, <br/>
<a id="pl.77.15"></a><var>77.15</var>the executive director shall grant the member a disability benefit.<br/>
<a id="pl.77.16"></a><var>77.16</var>(e) An employee who is placed on leave of absence without compensation because <br/>
<a id="pl.77.17"></a><var>77.17</var>of disability is not barred from receiving a disability benefit.<br/>
<a id="pl.77.18"></a><var>77.18</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.4.27.0"></a><a id="pl.77.19"></a><var>77.19</var>    Sec. 27. Minnesota Statutes 2008, section 354.48, subdivision 6, is amended to read:<br/>
<a id="pl.77.20"></a><var>77.20</var>    Subd. 6. <b>Regular physical examinations.</b> At least once each year during the first <br/>
<a id="pl.77.21"></a><var>77.21</var>five years following the allowance of a disability benefit to any member, and at least once <br/>
<a id="pl.77.22"></a><var>77.22</var>in every three-year period thereafter, the executive director shall may require the disability <br/>
<a id="pl.77.23"></a><var>77.23</var>beneficiary recipient to undergo an expert examination by a physician or physicians, <br/>
<a id="pl.77.24"></a><var>77.24</var>by a chiropractor or chiropractors, or by one or more psychologists with respect to a <br/>
<a id="pl.77.25"></a><var>77.25</var>mental impairment, engaged by the executive director. If an examination indicates that the <br/>
<a id="pl.77.26"></a><var>77.26</var>member is no longer permanently and totally disabled or that the member is engaged or is <br/>
<a id="pl.77.27"></a><var>77.27</var>able to engage in a substantial gainful occupation, payments of the disability benefit by <br/>
<a id="pl.77.28"></a><var>77.28</var>the association must be discontinued. The payments must be discontinued as soon as the <br/>
<a id="pl.77.29"></a><var>77.29</var>member is reinstated to the payroll following sick leave, but payment may not be made for <br/>
<a id="pl.77.30"></a><var>77.30</var>more than 60 days after the physicians, the chiropractors, or the psychologists engaged by <br/>
<a id="pl.77.31"></a><var>77.31</var>the executive director find that the person is no longer permanently and totally disabled.<br/>
<a id="pl.77.32"></a><var>77.32</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.4.28.0"></a><a id="pl.77.33"></a><var>77.33</var>    Sec. 28. Minnesota Statutes 2008, section 354.49, subdivision 2, is amended to read:<br/>
<a id="pl.78.1"></a><var>78.1</var>    Subd. 2. <b>Calculation.</b> (a) Except as provided in section 
         <statute_ref>354.44, subdivision 1</statute_ref>, any <br/>
<a id="pl.78.2"></a><var>78.2</var>person who ceases to be a member by reason of termination of teaching service, shall is <br/>
<a id="pl.78.3"></a><var>78.3</var>entitled to receive a refund in an amount equal to the accumulated deductions credited to <br/>
<a id="pl.78.4"></a><var>78.4</var>the account as of June 30, 1957, and after July 1, 1957, the accumulated deductions with <br/>
<a id="pl.78.5"></a><var>78.5</var>interest at the rate of six percent per annum compounded annually. For the purpose of this <br/>
<a id="pl.78.6"></a><var>78.6</var>subdivision, interest shall must be computed on fiscal year end balances to the first day of <br/>
<a id="pl.78.7"></a><var>78.7</var>the month in which the refund is issued.  <br/>
<a id="pl.78.8"></a><var>78.8</var>(b) If the person has received permanent disability payments under section 354.48, <br/>
<a id="pl.78.9"></a><var>78.9</var>the refund amount must be reduced by the amount of those payments.<br/>
<a id="pl.78.10"></a><var>78.10</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.4.29.0"></a><a id="pl.78.11"></a><var>78.11</var>    Sec. 29. Minnesota Statutes 2008, section 354.52, subdivision 2a, is amended to read:<br/>
<a id="pl.78.12"></a><var>78.12</var>    Subd. 2a. <b>Annual</b><b> Postretirement income </b><b>reports</b><b> reporting</b><b>.</b> On or before each <br/>
<a id="pl.78.13"></a><var>78.13</var>February 15, a representative authorized by an Each employing unit must report to the <br/>
<a id="pl.78.14"></a><var>78.14</var>executive director the amount of income earned during the previous calendar fiscal year <br/>
<a id="pl.78.15"></a><var>78.15</var>by each retiree for teaching service performed after retirement. This annual report must be <br/>
<a id="pl.78.16"></a><var>78.16</var>shall be done through the payroll reporting system and is based on reemployment income <br/>
<a id="pl.78.17"></a><var>78.17</var>as defined in section 
         <statute_ref>354.44, subdivision 5</statute_ref>, and it must be made on a form provided by the <br/>
<a id="pl.78.18"></a><var>78.18</var>executive director. Signing Submitting the report salary data through payroll reporting <br/>
<a id="pl.78.19"></a><var>78.19</var>has the force and effect of an oath as to the correctness of the amount of postretirement <br/>
<a id="pl.78.20"></a><var>78.20</var>reemployment income earned.  <br/>
<a id="pl.78.21"></a><var>78.21</var><b>EFFECTIVE DATE.</b>This section is effective January 1, 2010.<br/>
<br/>
<a id="bill.4.30.0"></a><a id="pl.78.22"></a><var>78.22</var>    Sec. 30. Minnesota Statutes 2008, section 354.52, subdivision 4b, is amended to read:<br/>
<a id="pl.78.23"></a><var>78.23</var>    Subd. 4b. <b>Payroll cycle reporting requirements.</b> An employing unit shall provide <br/>
<a id="pl.78.24"></a><var>78.24</var>the following data to the association for payroll warrants on an ongoing basis within 14 <br/>
<a id="pl.78.25"></a><var>78.25</var>calendar days after the date of the payroll warrant in a format prescribed by the executive <br/>
<a id="pl.78.26"></a><var>78.26</var>director:<br/>
<a id="pl.78.27"></a><var>78.27</var>(1) association member number;<br/>
<a id="pl.78.28"></a><var>78.28</var>(2) employer-assigned employee number;<br/>
<a id="pl.78.29"></a><var>78.29</var>(3) Social Security number;<br/>
<a id="pl.78.30"></a><var>78.30</var>(4) amount of each salary deduction;<br/>
<a id="pl.78.31"></a><var>78.31</var>(5) amount of salary as defined in section 
         <statute_ref>354.05, subdivision 35</statute_ref>, from which each <br/>
<a id="pl.78.32"></a><var>78.32</var>deduction was made;  <br/>
<a id="pl.78.33"></a><var>78.33</var>(6) reason for payment;<br/>
<a id="pl.79.1"></a><var>79.1</var>(7) service credit;<br/>
<a id="pl.79.2"></a><var>79.2</var>(8) the beginning and ending dates of the payroll period covered and the date <br/>
<a id="pl.79.3"></a><var>79.3</var>of actual payment;<br/>
<a id="pl.79.4"></a><var>79.4</var>(9) fiscal year of salary earnings;<br/>
<a id="pl.79.5"></a><var>79.5</var>(10) total remittance amount including employee, employer, and additional employer <br/>
<a id="pl.79.6"></a><var>79.6</var>contributions; and<br/>
<a id="pl.79.7"></a><var>79.7</var>(11) reemployed annuitant salary under section 354.44, subdivision 5; and<br/>
<a id="pl.79.8"></a><var>79.8</var>(11) (12)  other information as may be required by the executive director.<br/>
<a id="pl.79.9"></a><var>79.9</var><b>EFFECTIVE DATE.</b>This section is effective January 1, 2010.<br/>
<br/>
<a id="bill.4.31.0"></a><a id="pl.79.10"></a><var>79.10</var>    Sec. 31. <b>[354.543] PRIOR OR UNCREDITED MILITARY SERVICE CREDIT </b><br/>
<a id="pl.79.11"></a><var>79.11</var><b>PURCHASE.</b><br/>
<a id="pl.79.12"></a><var>79.12</var>    Subdivision 1. <b>Service credit purchase authorized.</b> (a) If paragraph (b) does not <br/>
<a id="pl.79.13"></a><var>79.13</var>apply, a teacher who has at least three years  of allowable service credit with the Teachers <br/>
<a id="pl.79.14"></a><var>79.14</var>Retirement Association and who performed service in the United States armed forces <br/>
<a id="pl.79.15"></a><var>79.15</var>before becoming a teacher as defined in section 354.05, subdivision 2, or who failed <br/>
<a id="pl.79.16"></a><var>79.16</var>to obtain service credit for a military leave of absence under the provisions of section <br/>
<a id="pl.79.17"></a><var>79.17</var>354.53, is entitled to purchase allowable and formula service credit for the initial period of <br/>
<a id="pl.79.18"></a><var>79.18</var>enlistment, induction, or call to active duty without any voluntary extension by making <br/>
<a id="pl.79.19"></a><var>79.19</var>payment under section 356.551.<br/>
<a id="pl.79.20"></a><var>79.20</var>(b) A service credit purchase is prohibited if:<br/>
<a id="pl.79.21"></a><var>79.21</var>(1) the teacher separated from service with the United States armed forces with a <br/>
<a id="pl.79.22"></a><var>79.22</var>dishonorable or bad conduct discharge or under other than honorable conditions; or<br/>
<a id="pl.79.23"></a><var>79.23</var>(2) the teacher has purchased or otherwise received service credit from any <br/>
<a id="pl.79.24"></a><var>79.24</var>Minnesota defined benefit public employee pension plan, other than a volunteer fire plan, <br/>
<a id="pl.79.25"></a><var>79.25</var>for the same period of service.<br/>
<a id="pl.79.26"></a><var>79.26</var>    Subd. 2. <b>Application and documentation.</b> A teacher who desires to purchase <br/>
<a id="pl.79.27"></a><var>79.27</var>service credit  under subdivision 1 must apply with the executive director to make the <br/>
<a id="pl.79.28"></a><var>79.28</var>purchase. The application must include all necessary documentation of the teacher's <br/>
<a id="pl.79.29"></a><var>79.29</var>qualifications to make the purchase, signed written permission to allow the executive <br/>
<a id="pl.79.30"></a><var>79.30</var>director to request and receive necessary verification of applicable facts and eligibility <br/>
<a id="pl.79.31"></a><var>79.31</var>requirements, and any other relevant information that the executive director may require.<br/>
<a id="pl.79.32"></a><var>79.32</var>    Subd. 3. <b>Service credit grant.</b> Allowable and formula service credit for the <br/>
<a id="pl.79.33"></a><var>79.33</var>purchase period  must be granted by the Teachers Retirement Association to the purchasing <br/>
<a id="pl.79.34"></a><var>79.34</var>teacher upon receipt of the purchase payment amount. Payment must be made before the <br/>
<a id="pl.79.35"></a><var>79.35</var>teacher's termination of teaching service.<br/>
<a id="pl.80.1"></a><var>80.1</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.4.32.0"></a><a id="pl.80.2"></a><var>80.2</var>    Sec. 32. Minnesota Statutes 2008, section 354.55, subdivision 11, is amended to read:<br/>
<a id="pl.80.3"></a><var>80.3</var>    Subd. 11. <b>Deferred annuity; augmentation.</b> (a) Any person covered under section <br/>
<statute_ref><a id="pl.80.4"></a><var>80.4</var>354.44, subdivision 6
         </statute_ref>, who ceases to render teaching service, may leave the person's <br/>
<a id="pl.80.5"></a><var>80.5</var>accumulated deductions in the fund for the purpose of receiving a deferred annuity at <br/>
<a id="pl.80.6"></a><var>80.6</var>retirement. Eligibility for an annuity under this subdivision is governed pursuant to <br/>
<a id="pl.80.7"></a><var>80.7</var>section 
<statute_ref>354.44, subdivision 1</statute_ref>, or 
<statute_ref>354.60</statute_ref>. <br/>
<a id="pl.80.8"></a><var>80.8</var>(b) The amount of the deferred retirement annuity is determined by section 
         <statute_ref>354.44, <br/>
<a id="pl.80.9"></a><var>80.9</var>subdivision 6
         </statute_ref>, and augmented as provided in this subdivision. The required reserves <br/>
<a id="pl.80.10"></a><var>80.10</var>related to that portion of for the annuity which had accrued when the member ceased to <br/>
<a id="pl.80.11"></a><var>80.11</var>render teaching service must be augmented, as further specified in this subdivision, by <br/>
<a id="pl.80.12"></a><var>80.12</var>interest compounded annually from the first day of the month following the month during <br/>
<a id="pl.80.13"></a><var>80.13</var>which the member ceased to render teaching service to the effective date of retirement.<br/>
<a id="pl.80.14"></a><var>80.14</var>(c) There shall be No augmentation is not creditable if this the deferral period is less <br/>
<a id="pl.80.15"></a><var>80.15</var>than three months or if this period commences prior to deferral commenced before July 1, <br/>
<a id="pl.80.16"></a><var>80.16</var>1971. The rates of interest used for this purpose must be five percent compounded annually <br/>
<a id="pl.80.17"></a><var>80.17</var>commencing July 1, 1971, until January 1, 1981, and three percent compounded annually <br/>
<a id="pl.80.18"></a><var>80.18</var>thereafter until January 1 of the year following the year in which the former member <br/>
<a id="pl.80.19"></a><var>80.19</var>attains age 55 and from that date to the effective date of retirement, the rate is five percent <br/>
<a id="pl.80.20"></a><var>80.20</var>compounded annually if the employee became an employee before July 1, 2006, and at 2.5 <br/>
<a id="pl.80.21"></a><var>80.21</var>percent compounded annually if the employee becomes an employee after June 30, 2006.<br/>
<a id="pl.80.22"></a><var>80.22</var>(d) For persons who became covered employees before July 1, 2006, with a deferral <br/>
<a id="pl.80.23"></a><var>80.23</var>period commencing after June 30, 1971, the annuity must be augmented using five <br/>
<a id="pl.80.24"></a><var>80.24</var>percent interest compounded annually until January 1, 1981, and three percent interest <br/>
<a id="pl.80.25"></a><var>80.25</var>compounded annually thereafter until January 1 of the year following the year in which <br/>
<a id="pl.80.26"></a><var>80.26</var>the deferred annuitant attains age 55. From that date to the effective date of retirement, the <br/>
<a id="pl.80.27"></a><var>80.27</var>rate is five percent compounded annually.<br/>
<a id="pl.80.28"></a><var>80.28</var>(e) For persons who become covered employees after June 30, 2006, the interest rate <br/>
<a id="pl.80.29"></a><var>80.29</var>used to augment the deferred annuity is 2.5 percent interest compounded annually.<br/>
<a id="pl.80.30"></a><var>80.30</var>(f) If a person has more than one period of uninterrupted service, a separate average <br/>
<a id="pl.80.31"></a><var>80.31</var>salary determined under section 
         <statute_ref>354.44, subdivision 6</statute_ref>, must be used for each period and <br/>
<a id="pl.80.32"></a><var>80.32</var>the required reserves related to each period must be augmented by interest pursuant to as <br/>
<a id="pl.80.33"></a><var>80.33</var>specified in this subdivision. The sum of the augmented required reserves so determined <br/>
<a id="pl.80.34"></a><var>80.34</var>shall be the basis for purchasing is the present value of the deferred annuity. For the <br/>
<a id="pl.80.35"></a><var>80.35</var>purposes of this subdivision, "period of uninterrupted service" means a period of covered <br/>
<a id="pl.81.1"></a><var>81.1</var>teaching service during which the member has not been separated from active service for <br/>
<a id="pl.81.2"></a><var>81.2</var>more than one fiscal year.<br/>
<a id="pl.81.3"></a><var>81.3</var>(g) If a person repays a refund, the service restored by the repayment must be <br/>
<a id="pl.81.4"></a><var>81.4</var>considered as continuous with the next period of service for which the person has <br/>
<a id="pl.81.5"></a><var>81.5</var>allowable service credit with this fund in the Teachers Retirement Association.<br/>
<a id="pl.81.6"></a><var>81.6</var>(h) If a person does not render teaching service in any one fiscal year or more <br/>
<a id="pl.81.7"></a><var>81.7</var>consecutive fiscal years and then resumes teaching service, the formula percentages used <br/>
<a id="pl.81.8"></a><var>81.8</var>from the date of the resumption of teaching service must be those applicable to new <br/>
<a id="pl.81.9"></a><var>81.9</var>members.<br/>
<a id="pl.81.10"></a><var>81.10</var>(i) The mortality table and interest assumption used to compute the annuity must be <br/>
<a id="pl.81.11"></a><var>81.11</var>the applicable mortality table established by the board under section 
         <statute_ref>354.07, subdivision <br/>
<a id="pl.81.12"></a><var>81.12</var>1
         </statute_ref>, and the interest rate assumption under section 
         <statute_ref>356.215</statute_ref> in effect when the member <br/>
<a id="pl.81.13"></a><var>81.13</var>retires. A period of uninterrupted service for the purposes of this subdivision means a <br/>
<a id="pl.81.14"></a><var>81.14</var>period of covered teaching service during which the member has not been separated from <br/>
<a id="pl.81.15"></a><var>81.15</var>active service for more than one fiscal year. <br/>
<a id="pl.81.16"></a><var>81.16</var>(c) (j) In no case shall may the annuity payable under this subdivision be less than <br/>
<a id="pl.81.17"></a><var>81.17</var>the amount of annuity payable pursuant to under section 
         <statute_ref>354.44, subdivision 6</statute_ref>. <br/>
<a id="pl.81.18"></a><var>81.18</var>(d) (k) The requirements and provisions for retirement before normal retirement <br/>
<a id="pl.81.19"></a><var>81.19</var>age contained in section 
         <statute_ref>354.44, subdivision 6</statute_ref>, clause (3) or (5), shall also apply to an <br/>
<a id="pl.81.20"></a><var>81.20</var>employee fulfilling the requirements with a combination of service as provided in section <br/>
<statute_ref><a id="pl.81.21"></a><var>81.21</var>354.60
         </statute_ref>. <br/>
<a id="pl.81.22"></a><var>81.22</var>(e) (l) The augmentation provided by this subdivision applies to the benefit provided <br/>
<a id="pl.81.23"></a><var>81.23</var>in section 
         <statute_ref>354.46, subdivision 2</statute_ref>. <br/>
<a id="pl.81.24"></a><var>81.24</var>(f) (m) The augmentation provided by this subdivision shall does not apply to any <br/>
<a id="pl.81.25"></a><var>81.25</var>period in which a person is on an approved leave of absence from an employer unit <br/>
<a id="pl.81.26"></a><var>81.26</var>covered by the provisions of this chapter.<br/>
<a id="pl.81.27"></a><var>81.27</var>(g) (n) The retirement annuity or disability benefit of, or the survivor benefit payable <br/>
<a id="pl.81.28"></a><var>81.28</var>on behalf of, a former teacher who terminated service before July 1, 1997, which is not <br/>
<a id="pl.81.29"></a><var>81.29</var>first payable until after June 30, 1997, must be increased on an actuarial equivalent basis <br/>
<a id="pl.81.30"></a><var>81.30</var>to reflect the change in the postretirement interest rate actuarial assumption under section <br/>
<statute_ref><a id="pl.81.31"></a><var>81.31</var>356.215, subdivision 8
         </statute_ref>, from five percent to six percent under a calculation procedure and <br/>
<a id="pl.81.32"></a><var>81.32</var>tables adopted by the board as recommended by an approved actuary and approved by the <br/>
<a id="pl.81.33"></a><var>81.33</var>actuary retained under section 
         <statute_ref>356.214</statute_ref>.<br/>
<a id="pl.81.34"></a><var>81.34</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.4.33.0"></a><a id="pl.82.1"></a><var>82.1</var>    Sec. 33. Minnesota Statutes 2008, section 354A.096, is amended to read:<br/>
<a id="pl.82.2"></a><var>82.2</var><b>354A.096 MEDICAL LEAVE.</b><br/>
<a id="pl.82.3"></a><var>82.3</var>Any teacher in the coordinated program of the St. Paul Teachers Retirement Fund <br/>
<a id="pl.82.4"></a><var>82.4</var>Association or the new law coordinated program of the Duluth Teachers Retirement Fund <br/>
<a id="pl.82.5"></a><var>82.5</var>Association who is on an authorized medical leave of absence and subsequently returns <br/>
<a id="pl.82.6"></a><var>82.6</var>to teaching service is entitled to receive allowable service credit, not to exceed one year, <br/>
<a id="pl.82.7"></a><var>82.7</var>for the period of leave, upon making the prescribed payment to the fund. This payment <br/>
<a id="pl.82.8"></a><var>82.8</var>must include the required employee and employer contributions at the rates specified in <br/>
<a id="pl.82.9"></a><var>82.9</var>section 
         <statute_ref>354A.12, subdivisions 1 and 2 2a</statute_ref>, as applied to the member's average full-time <br/>
<a id="pl.82.10"></a><var>82.10</var>monthly salary rate on the date the leave of absence commenced plus annual interest at <br/>
<a id="pl.82.11"></a><var>82.11</var>the rate of 8.5 percent per year from the end of the fiscal year during which the leave <br/>
<a id="pl.82.12"></a><var>82.12</var>terminates to the end of the month during which payment is made. The member must pay <br/>
<a id="pl.82.13"></a><var>82.13</var>the total amount required unless the employing unit, at its option, pays the employer <br/>
<a id="pl.82.14"></a><var>82.14</var>contributions. The total amount required must be paid by the end of the fiscal year <br/>
<a id="pl.82.15"></a><var>82.15</var>following the fiscal year in which the leave of absence terminated or before the member <br/>
<a id="pl.82.16"></a><var>82.16</var>retires, whichever is earlier. Payment must be accompanied by a copy of the resolution or <br/>
<a id="pl.82.17"></a><var>82.17</var>action of the employing authority granting the leave and the employing authority, upon <br/>
<a id="pl.82.18"></a><var>82.18</var>granting the leave, must certify the leave to the association in a manner specified by the <br/>
<a id="pl.82.19"></a><var>82.19</var>executive director. A member may not receive more than one year of allowable service <br/>
<a id="pl.82.20"></a><var>82.20</var>credit during any fiscal year by making payment under this section. A member may not <br/>
<a id="pl.82.21"></a><var>82.21</var>receive disability benefits under section 
         <statute_ref>354A.36</statute_ref> and receive allowable service credit <br/>
<a id="pl.82.22"></a><var>82.22</var>under this section for the same period of time. <br/>
<a id="pl.82.23"></a><var>82.23</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.4.34.0"></a><a id="pl.82.24"></a><var>82.24</var>    Sec. 34. Minnesota Statutes 2008, section 354A.12, subdivision 2a, is amended to read:<br/>
<a id="pl.82.25"></a><var>82.25</var>    Subd. 2a.  <b>Employer regular and additional </b><b>contribution rates</b><b> contributions</b><b>.</b><br/>
<a id="pl.82.26"></a><var>82.26</var>(a) The employing units shall make the following employer contributions to teachers <br/>
<a id="pl.82.27"></a><var>82.27</var>retirement fund associations: <br/>
<a id="pl.82.28"></a><var>82.28</var>(1) for any coordinated member of a teachers retirement fund association in a city of <br/>
<a id="pl.82.29"></a><var>82.29</var>the first class, the employing unit shall pay the employer Social Security taxes; <br/>
<a id="pl.82.30"></a><var>82.30</var>(2) for any coordinated member of one of the following teachers retirement fund <br/>
<a id="pl.82.31"></a><var>82.31</var>associations in a city of the first class, the employing unit shall make a regular employer <br/>
<a id="pl.82.32"></a><var>82.32</var>contribution to the respective retirement fund association in an amount equal to the <br/>
<a id="pl.82.33"></a><var>82.33</var>designated percentage of the salary of the coordinated member as provided below: <br/>
<table>
<col width="50px"/>
<col width="6"/>
<col width="22.5"/>
<col width="20"/>
<col width="16.5"/>
<tr>
<td><a id="pl.83.1"></a><var>83.1</var><br/>
<a id="pl.83.2"></a><var>83.2</var><br/>
</td>
<td></td>
<td>Duluth Teachers Retirement <br/>
                  		Fund Association <br/>
</td>
<td></td>
<td>4.50 percent<br/>
</td>
</tr>
<tr>
<td><a id="pl.83.3"></a><var>83.3</var><br/>
<a id="pl.83.4"></a><var>83.4</var><br/>
</td>
<td></td>
<td>St. Paul Teachers Retirement <br/>
                  		Fund Association<br/>
</td>
<td></td>
<td>4.50 percent<br/>
</td>
</tr>
</table><a id="pl.83.5"></a><var>83.5</var>(3) (2) for any basic member of the St. Paul Teachers Retirement Fund Association, <br/>
<a id="pl.83.6"></a><var>83.6</var>the employing unit shall make a regular employer contribution to the respective retirement <br/>
<a id="pl.83.7"></a><var>83.7</var>fund in an amount equal to 8.00 percent of the salary of the basic member;<br/>
<a id="pl.83.8"></a><var>83.8</var>(4) (3) for a basic member of the St. Paul Teachers Retirement Fund Association, the <br/>
<a id="pl.83.9"></a><var>83.9</var>employing unit shall make an additional employer contribution to the respective fund in <br/>
<a id="pl.83.10"></a><var>83.10</var>an amount equal to 3.64 percent of the salary of the basic member;<br/>
<a id="pl.83.11"></a><var>83.11</var>(5) (4) for a coordinated member of a teachers retirement fund association in a city <br/>
<a id="pl.83.12"></a><var>83.12</var>of the first class, the employing unit shall make an additional employer contribution to <br/>
<a id="pl.83.13"></a><var>83.13</var>the respective fund in an amount equal to the applicable percentage of the coordinated <br/>
<a id="pl.83.14"></a><var>83.14</var>member's salary, as provided below:<br/>
<table>
<col width="50px"/>
<col width="7.5"/>
<col width="22.5"/>
<col width="13.5"/>
<col width="21.5"/>
<tr>
<td><a id="pl.83.15"></a><var>83.15</var><br/>
<a id="pl.83.16"></a><var>83.16</var><br/>
</td>
<td></td>
<td>Duluth Teachers Retirement <br/>
                  		Fund Association<br/>
</td>
<td></td>
<td>1.29 percent<br/>
</td>
</tr>
<tr>
<td><a id="pl.83.17"></a><var>83.17</var><br/>
<a id="pl.83.18"></a><var>83.18</var><br/>
</td>
<td></td>
<td>St. Paul Teachers Retirement <br/>
                  		Fund Association<br/>
</td>
<td></td>
<td>3.84 percent<br/>
</td>
</tr>
<tr>
<td><a id="pl.83.19"></a><var>83.19</var><br/>
</td>
<td></td>
<td>July 1, 1993 - June 30, 1994<br/>
</td>
<td></td>
<td>0.50 percent<br/>
</td>
</tr>
<tr>
<td><a id="pl.83.20"></a><var>83.20</var><br/>
</td>
<td></td>
<td>July 1, 1994 - June 30, 1995<br/>
</td>
<td></td>
<td>1.50 percent<br/>
</td>
</tr>
<tr>
<td><a id="pl.83.21"></a><var>83.21</var><br/>
</td>
<td></td>
<td>July 1, 1997, and thereafter<br/>
</td>
<td></td>
<td>3.84 percent<br/>
</td>
</tr>
</table><a id="pl.83.22"></a><var>83.22</var>(b) The regular and additional employer contributions must be remitted directly to <br/>
<a id="pl.83.23"></a><var>83.23</var>the respective teachers retirement fund association at least once each month. Delinquent <br/>
<a id="pl.83.24"></a><var>83.24</var>amounts are payable with interest under the procedure in subdivision 1a.<br/>
<a id="pl.83.25"></a><var>83.25</var>(c) Payments of regular and additional employer contributions for school district <br/>
<a id="pl.83.26"></a><var>83.26</var>or technical college employees who are paid from normal operating funds must be made <br/>
<a id="pl.83.27"></a><var>83.27</var>from the appropriate fund of the district or technical college. <br/>
<a id="pl.83.28"></a><var>83.28</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.4.35.0"></a><a id="pl.83.29"></a><var>83.29</var>    Sec. 35. Minnesota Statutes 2008, section 354A.12, is amended by adding a <br/>
<a id="pl.83.30"></a><var>83.30</var>subdivision to read:<br/>
<a id="pl.83.31"></a><var>83.31</var>    Subd. 6. <b>Adjustment for erroneous receipts.</b> (a) Adjustments to correct employer <br/>
<a id="pl.83.32"></a><var>83.32</var>contributions and employee deductions taken in error from amounts which are not salary <br/>
<a id="pl.83.33"></a><var>83.33</var>under section 354A.011, subdivision 24, must be made as specified in this section.<br/>
<a id="pl.83.34"></a><var>83.34</var>(b) Upon discovery of the receipt of erroneous employee deductions and employer <br/>
<a id="pl.83.35"></a><var>83.35</var>contributions under paragraph (a), the executive director must require the employer to <br/>
<a id="pl.83.36"></a><var>83.36</var>discontinue the erroneous employee deductions and erroneous employer contributions <br/>
<a id="pl.84.1"></a><var>84.1</var>reported on behalf of an active member. Upon discontinuation, the executive director <br/>
<a id="pl.84.2"></a><var>84.2</var>must provide for a refund or credit to the employer in the amount of the invalid employee <br/>
<a id="pl.84.3"></a><var>84.3</var>deductions with interest on the employee deductions at the rate specified in section <br/>
<a id="pl.84.4"></a><var>84.4</var>354A.37, subdivision 3, from the received date of each invalid salary transaction to the <br/>
<a id="pl.84.5"></a><var>84.5</var>first day of the month in which the credit or refund is made. The employer must pay the <br/>
<a id="pl.84.6"></a><var>84.6</var>refunded employee deductions plus interest to the active member.<br/>
<a id="pl.84.7"></a><var>84.7</var>(c) If the individual is a former member who is not receiving a retirement annuity or <br/>
<a id="pl.84.8"></a><var>84.8</var>benefit and has not received a refund under section 354A.37, subdivision 3, related to the <br/>
<a id="pl.84.9"></a><var>84.9</var>applicable service, the executive director must return the erroneous employee deductions <br/>
<a id="pl.84.10"></a><var>84.10</var>to the former member through a refund with interest at the rate specified in section <br/>
<a id="pl.84.11"></a><var>84.11</var>354A.37, subdivision 3, from the received date of each invalid salary transaction to the <br/>
<a id="pl.84.12"></a><var>84.12</var>first day of the month in which the credit or refund is made.<br/>
<a id="pl.84.13"></a><var>84.13</var>(d) The executive director must return the invalid employer contributions reported <br/>
<a id="pl.84.14"></a><var>84.14</var>on behalf of a member or former member to the employer by providing a credit against <br/>
<a id="pl.84.15"></a><var>84.15</var>future contributions payable by the employer.<br/>
<a id="pl.84.16"></a><var>84.16</var><b>EFFECTIVE DATE.</b>This section is effective the day after final enactment.<br/>
<br/>
<a id="bill.4.36.0"></a><a id="pl.84.17"></a><var>84.17</var>    Sec. 36. Minnesota Statutes 2008, section 354A.12, is amended by adding a <br/>
<a id="pl.84.18"></a><var>84.18</var>subdivision to read:<br/>
<a id="pl.84.19"></a><var>84.19</var>    Subd. 7. <b>Recovery of benefit overpayments.</b> (a) If the executive director discovers, <br/>
<a id="pl.84.20"></a><var>84.20</var>within the time period specified in subdivision 8 following the payment of a refund or <br/>
<a id="pl.84.21"></a><var>84.21</var>the accrual date of any retirement annuity, survivor benefit, or disability benefit, that <br/>
<a id="pl.84.22"></a><var>84.22</var>benefit overpayment has occurred due to using invalid service or salary, or due to any <br/>
<a id="pl.84.23"></a><var>84.23</var>erroneous calculation procedure, the executive director must recalculate the annuity or <br/>
<a id="pl.84.24"></a><var>84.24</var>benefit payable and recover any overpayment. The executive director shall recover the <br/>
<a id="pl.84.25"></a><var>84.25</var>overpayment by requiring direct repayment or by suspending or reducing the payment of a <br/>
<a id="pl.84.26"></a><var>84.26</var>retirement annuity or other benefit payable under this chapter to the applicable person or <br/>
<a id="pl.84.27"></a><var>84.27</var>the person's estate, whichever applies, until all outstanding amounts have been recovered.<br/>
<a id="pl.84.28"></a><var>84.28</var>(b) In the event the executive director determines that an overpaid annuity or benefit <br/>
<a id="pl.84.29"></a><var>84.29</var>that is the result of invalid salary included in the average salary used to calculate the <br/>
<a id="pl.84.30"></a><var>84.30</var>payment amount must be recovered, the executive director must determine the amount of <br/>
<a id="pl.84.31"></a><var>84.31</var>the employee deductions taken in error on the invalid salary, with interest as determined <br/>
<a id="pl.84.32"></a><var>84.32</var>under 354A.37, subdivision 3, and must subtract that amount from the total annuity or <br/>
<a id="pl.84.33"></a><var>84.33</var>benefit overpayment, and the remaining balance of the overpaid annuity or benefit, if <br/>
<a id="pl.84.34"></a><var>84.34</var>any, must be recovered.<br/>
<a id="pl.85.1"></a><var>85.1</var>(c) If the invalid employee deductions plus interest exceed the amount of the <br/>
<a id="pl.85.2"></a><var>85.2</var>overpaid benefits, the balance must be refunded to the person to whom the benefit or <br/>
<a id="pl.85.3"></a><var>85.3</var>annuity is being paid.<br/>
<a id="pl.85.4"></a><var>85.4</var>(d) Any invalid employer contributions reported on the invalid salary must be <br/>
<a id="pl.85.5"></a><var>85.5</var>credited against future contributions payable by the employer.<br/>
<a id="pl.85.6"></a><var>85.6</var>(e) If a member or former member, who is receiving a retirement annuity or <br/>
<a id="pl.85.7"></a><var>85.7</var>disability benefit for which an overpayment is being recovered, dies before recovery of the <br/>
<a id="pl.85.8"></a><var>85.8</var>overpayment is completed and an optional annuity or refund is payable, the remaining <br/>
<a id="pl.85.9"></a><var>85.9</var>balance of the overpaid annuity or benefit must continue to be recovered from the payment <br/>
<a id="pl.85.10"></a><var>85.10</var>to the optional annuity beneficiary or refund recipient.<br/>
<a id="pl.85.11"></a><var>85.11</var>(f) The board of trustees shall adopt policies directing the period of time and manner <br/>
<a id="pl.85.12"></a><var>85.12</var>for the collection of any overpaid retirement or optional annuity, and survivor or disability <br/>
<a id="pl.85.13"></a><var>85.13</var>benefit, or a refund that the executive director determines must be recovered as provided <br/>
<a id="pl.85.14"></a><var>85.14</var>under this section.<br/>
<a id="pl.85.15"></a><var>85.15</var><b>EFFECTIVE DATE.</b>This section is effective the day after final enactment.<br/>
<br/>
<a id="bill.4.37.0"></a><a id="pl.85.16"></a><var>85.16</var>    Sec. 37. Minnesota Statutes 2008, section 354A.12, is amended by adding a <br/>
<a id="pl.85.17"></a><var>85.17</var>subdivision to read:<br/>
<a id="pl.85.18"></a><var>85.18</var>    Subd. 8. <b>Additional procedures.</b> (a) If paragraph (b) does not apply, the period of <br/>
<a id="pl.85.19"></a><var>85.19</var>adjustment under subdivisions 6 and 7 is limited to the fiscal year in which the error is <br/>
<a id="pl.85.20"></a><var>85.20</var>discovered by the executive director and the immediate two preceding fiscal years. <br/>
<a id="pl.85.21"></a><var>85.21</var>(b) If there is evidence of fraud or other misconduct on the part of the employee or <br/>
<a id="pl.85.22"></a><var>85.22</var>the employer, the board of trustees may authorize adjustments to the account of a member <br/>
<a id="pl.85.23"></a><var>85.23</var>or former member to correct erroneous employee deductions and employer contributions <br/>
<a id="pl.85.24"></a><var>85.24</var>on invalid salary and the recovery of any overpayments for a period longer than specified <br/>
<a id="pl.85.25"></a><var>85.25</var>under paragraph (a).<br/>
<a id="pl.85.26"></a><var>85.26</var>(c) Notwithstanding other provisions of this section, the executive director may <br/>
<a id="pl.85.27"></a><var>85.27</var>apply the Revenue Procedures defined in the Internal Revenue Service Employee Plans <br/>
<a id="pl.85.28"></a><var>85.28</var>Compliance Resolution System and not issue a refund of erroneous employee deductions <br/>
<a id="pl.85.29"></a><var>85.29</var>and employer contributions or not recover a small overpayment of benefits if the cost to <br/>
<a id="pl.85.30"></a><var>85.30</var>correct the error would exceed the amount of the refund or overpayment.<br/>
<a id="pl.85.31"></a><var>85.31</var>(d) Notwithstanding other provisions of this section, interest of $10 or less shall not <br/>
<a id="pl.85.32"></a><var>85.32</var>be payable to a member or former member.<br/>
<a id="pl.85.33"></a><var>85.33</var><b>EFFECTIVE DATE.</b>This section is effective the day after final enactment.<br/>
<br/>
<a id="bill.4.38.0"></a><a id="pl.86.1"></a><var>86.1</var>    Sec. 38. Minnesota Statutes 2008, section 354A.12, is amended by adding a <br/>
<a id="pl.86.2"></a><var>86.2</var>subdivision to read:<br/>
<a id="pl.86.3"></a><var>86.3</var>    Subd. 9. <b>Employer responsibility for fees, penalties.</b> Any fees or penalties <br/>
<a id="pl.86.4"></a><var>86.4</var>assessed by the Internal Revenue Service for any failure by an employer to follow the <br/>
<a id="pl.86.5"></a><var>86.5</var>statutory requirements for reporting eligible members and salary must be paid by the <br/>
<a id="pl.86.6"></a><var>86.6</var>employer.<br/>
<a id="pl.86.7"></a><var>86.7</var><b>EFFECTIVE DATE.</b>This section is effective the day after final enactment.<br/>
<br/>
<a id="bill.4.39.0"></a><a id="pl.86.8"></a><var>86.8</var>    Sec. 39. Minnesota Statutes 2008, section 354A.36, subdivision 6, is amended to read:<br/>
<a id="pl.86.9"></a><var>86.9</var>    Subd. 6. <b>Requirement for regular physical examinations.</b> At least once each year <br/>
<a id="pl.86.10"></a><var>86.10</var>during the first five years following the granting of a disability benefit to a coordinated <br/>
<a id="pl.86.11"></a><var>86.11</var>member by the board and at least once in every three year period thereafter, the board shall <br/>
<a id="pl.86.12"></a><var>86.12</var>may require the disability benefit recipient to undergo an expert examination as a condition <br/>
<a id="pl.86.13"></a><var>86.13</var>for continued entitlement of the benefit recipient to receive a disability benefit. If the board <br/>
<a id="pl.86.14"></a><var>86.14</var>requires an examination, the expert examination must be made at the place of residence of <br/>
<a id="pl.86.15"></a><var>86.15</var>the disability benefit recipient or at any other place mutually agreeable to the disability <br/>
<a id="pl.86.16"></a><var>86.16</var>benefit recipient and the board. The expert examination must be made by a physician or <br/>
<a id="pl.86.17"></a><var>86.17</var>physicians, by a chiropractor or chiropractors, or by one or more psychologists engaged <br/>
<a id="pl.86.18"></a><var>86.18</var>by the board. The physician or physicians, the chiropractor or chiropractors, or the <br/>
<a id="pl.86.19"></a><var>86.19</var>psychologist or psychologists with respect to a mental impairment, conducting the expert <br/>
<a id="pl.86.20"></a><var>86.20</var>examination shall make a written report to the board concerning the disability benefit <br/>
<a id="pl.86.21"></a><var>86.21</var>recipient and the recipient's disability, including a statement of the expert opinion of <br/>
<a id="pl.86.22"></a><var>86.22</var>the physician, chiropractor, or psychologist as to whether or not the member remains <br/>
<a id="pl.86.23"></a><var>86.23</var>permanently and totally disabled within the meaning of section 
         <statute_ref>354A.011, subdivision <br/>
<a id="pl.86.24"></a><var>86.24</var>14
         </statute_ref>. If the board determines from consideration of the written expert examination report <br/>
<a id="pl.86.25"></a><var>86.25</var>of the physician, of the chiropractor, or of the psychologist, with respect to a mental <br/>
<a id="pl.86.26"></a><var>86.26</var>impairment, that the disability benefit recipient is no longer permanently and totally <br/>
<a id="pl.86.27"></a><var>86.27</var>disabled or if the board determines that the benefit recipient is engaged or is able to <br/>
<a id="pl.86.28"></a><var>86.28</var>engage in a gainful occupation, unless the disability benefit recipient is partially employed <br/>
<a id="pl.86.29"></a><var>86.29</var>under subdivision 7, then further disability benefit payments from the fund must be <br/>
<a id="pl.86.30"></a><var>86.30</var>discontinued. The discontinuation of disability benefits must occur immediately if the <br/>
<a id="pl.86.31"></a><var>86.31</var>disability recipient is reinstated to the district payroll following sick leave and within 60 <br/>
<a id="pl.86.32"></a><var>86.32</var>days of the determination by the board following the expert examination and report of the <br/>
<a id="pl.86.33"></a><var>86.33</var>physician or physicians, chiropractor or chiropractors, or psychologist or psychologists <br/>
<a id="pl.86.34"></a><var>86.34</var>engaged by the board that the disability benefit recipient is no longer permanently and <br/>
<a id="pl.86.35"></a><var>86.35</var>totally disabled within the meaning of section 
         <statute_ref>354A.011, subdivision 14</statute_ref>.  <br/>
<a id="pl.87.1"></a><var>87.1</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.4.40.0"></a><a id="pl.87.2"></a><var>87.2</var>    Sec. 40. Minnesota Statutes 2008, section 356.401, subdivision 2, is amended to read:<br/>
<a id="pl.87.3"></a><var>87.3</var>    Subd. 2. <b>Automatic deposits.</b> (a) The chief administrative officer of a covered <br/>
<a id="pl.87.4"></a><var>87.4</var>retirement plan may remit, through an automatic deposit system, annuity, benefit, or <br/>
<a id="pl.87.5"></a><var>87.5</var>refund payments only to a financial institution associated with the National Automated <br/>
<a id="pl.87.6"></a><var>87.6</var>Clearinghouse Association or a comparable successor organization that is trustee for a <br/>
<a id="pl.87.7"></a><var>87.7</var>person who is eligible to receive the annuity, benefit, or refund.<br/>
<a id="pl.87.8"></a><var>87.8</var>(b) Upon the request of a retiree, disabilitant, survivor, or former member, the chief <br/>
<a id="pl.87.9"></a><var>87.9</var>administrative officer of a covered retirement plan may remit the annuity, benefit, or <br/>
<a id="pl.87.10"></a><var>87.10</var>refund check payment to the applicable financial institution for deposit in the person's <br/>
<a id="pl.87.11"></a><var>87.11</var>individual account or the person's joint account. If an overpayment of benefits is paid <br/>
<a id="pl.87.12"></a><var>87.12</var>after the death of the annuitant or benefit recipient, the chief administrative officer of <br/>
<a id="pl.87.13"></a><var>87.13</var>the pension plan is authorized to issue an administrative subpoena consistent with the <br/>
<a id="pl.87.14"></a><var>87.14</var>requirements of section 13A.02, requiring the applicable financial institution to disclose <br/>
<a id="pl.87.15"></a><var>87.15</var>the names of all joint and co-owners of the account and a description of all deposits to, <br/>
<a id="pl.87.16"></a><var>87.16</var>and withdrawals from, the account which take place on or after the death of the annuitant <br/>
<a id="pl.87.17"></a><var>87.17</var>or benefit recipient. An overpayment to a joint account after the death of the annuitant or <br/>
<a id="pl.87.18"></a><var>87.18</var>benefit recipient must be repaid to the fund of the applicable covered retirement plan by <br/>
<a id="pl.87.19"></a><var>87.19</var>the joint tenant if the overpayment is not repaid to that fund by the financial institution <br/>
<a id="pl.87.20"></a><var>87.20</var>associated with the National Automated Clearinghouse Association or its successor. The <br/>
<a id="pl.87.21"></a><var>87.21</var>governing board of the covered retirement plan may prescribe the conditions under which <br/>
<a id="pl.87.22"></a><var>87.22</var>these payments may be made.<br/>
<a id="pl.87.23"></a><var>87.23</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.4.41.0"></a><a id="pl.87.24"></a><var>87.24</var>    Sec. 41. Minnesota Statutes 2008, section 356.465, subdivision 1, is amended to read:<br/>
<a id="pl.87.25"></a><var>87.25</var>    Subdivision 1. <b>Inclusion as recipient.</b> Notwithstanding any provision to the <br/>
<a id="pl.87.26"></a><var>87.26</var>contrary of the laws, articles of incorporation, or bylaws governing a covered retirement <br/>
<a id="pl.87.27"></a><var>87.27</var>plan specified in subdivision 3, A retiring member may designate a qualified supplemental <br/>
<a id="pl.87.28"></a><var>87.28</var>needs trust under subdivision 2 as the remainder recipient on an optional retirement <br/>
<a id="pl.87.29"></a><var>87.29</var>annuity form for a period not to exceed the lifetime of the beneficiary of the supplemental <br/>
<a id="pl.87.30"></a><var>87.30</var>needs trust.<br/>
<a id="pl.87.31"></a><var>87.31</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.4.42.0"></a><a id="pl.88.1"></a><var>88.1</var>    Sec. 42. Minnesota Statutes 2008, section 356.465, is amended by adding a subdivision <br/>
<a id="pl.88.2"></a><var>88.2</var>to read:<br/>
<a id="pl.88.3"></a><var>88.3</var>    Subd. 4. <b>Expanded eligibility.</b> (a) Notwithstanding subdivision 1, for a retirement <br/>
<a id="pl.88.4"></a><var>88.4</var>plan specified in paragraph (b), a designation under subdivision 1 may be made by an <br/>
<a id="pl.88.5"></a><var>88.5</var>active, disabled, deferred, or retiring member.<br/>
<a id="pl.88.6"></a><var>88.6</var>(b) The applicable plan is the Teachers Retirement Association established under <br/>
<a id="pl.88.7"></a><var>88.7</var>chapter 354.<br/>
<a id="pl.88.8"></a><var>88.8</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.4.43.0"></a><a id="pl.88.9"></a><var>88.9</var>    Sec. 43. Minnesota Statutes 2008, section 356.611, subdivision 3, is amended to read:<br/>
<a id="pl.88.10"></a><var>88.10</var>    Subd. 3. <b>Maximum benefit limitations.</b> A member's annual benefit, if necessary, <br/>
<a id="pl.88.11"></a><var>88.11</var>must be reduced to the extent required by section 415(b) of the federal Internal Revenue <br/>
<a id="pl.88.12"></a><var>88.12</var>Code, as adjusted by the United States secretary of the treasury under section 415(d) of the <br/>
<a id="pl.88.13"></a><var>88.13</var>Internal Revenue Code for any applicable increases in the cost of living after the member's <br/>
<a id="pl.88.14"></a><var>88.14</var>termination of employment. For purposes of section 415 of the federal Internal Revenue <br/>
<a id="pl.88.15"></a><var>88.15</var>Code, the limitation year of a pension plan covered by this section must be the fiscal year <br/>
<a id="pl.88.16"></a><var>88.16</var>or calendar year of that plan, whichever is applicable. The accrued benefit limitation <br/>
<a id="pl.88.17"></a><var>88.17</var>described in section 415(e) of the Internal Revenue Code must cease to be effective for <br/>
<a id="pl.88.18"></a><var>88.18</var>limitation years beginning after December 31, 1999.<br/>
<a id="pl.88.19"></a><var>88.19</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2009.<br/>
<br/>
<a id="bill.4.44.0"></a><a id="pl.88.20"></a><var>88.20</var>    Sec. 44. Minnesota Statutes 2008, section 356.611, subdivision 4, is amended to read:<br/>
<a id="pl.88.21"></a><var>88.21</var>    Subd. 4. <b>Compensation.</b> (a) For purposes of this section, compensation means <br/>
<a id="pl.88.22"></a><var>88.22</var>a member's compensation actually paid or made available for any limitation year <br/>
<a id="pl.88.23"></a><var>88.23</var>determined as provided by including items described in federal treasury regulation section <br/>
<a id="pl.88.24"></a><var>88.24</var>1.415-2(d)(10) 1.415(c)-2(b) and excluding items described in federal treasury regulation <br/>
<a id="pl.88.25"></a><var>88.25</var>section 1.415(c)-2(c).<br/>
<a id="pl.88.26"></a><var>88.26</var>(b) Compensation for any period includes:<br/>
<a id="pl.88.27"></a><var>88.27</var>(1) any elective deferral as defined in section 402(g)(3) of the federal Internal <br/>
<a id="pl.88.28"></a><var>88.28</var>Revenue Code;<br/>
<a id="pl.88.29"></a><var>88.29</var>(2) any elective amounts that are not includable in a member's gross income by <br/>
<a id="pl.88.30"></a><var>88.30</var>reason of sections 125 or 457 of the federal Internal Revenue Code; and<br/>
<a id="pl.88.31"></a><var>88.31</var>(3) any elective amounts that are not includable in a member's gross income by <br/>
<a id="pl.88.32"></a><var>88.32</var>reason of section 132(f)(4) of the federal Internal Revenue Code.<br/>
<a id="pl.88.33"></a><var>88.33</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2009.<br/>
<br/>
<a id="bill.4.45.0"></a><a id="pl.89.1"></a><var>89.1</var>    Sec. 45. Minnesota Statutes 2008, section 356.635, subdivision 6, is amended to read:<br/>
<a id="pl.89.2"></a><var>89.2</var>    Subd. 6. <b>Eligible retirement plan.</b> (a) An "eligible retirement plan" is:<br/>
<a id="pl.89.3"></a><var>89.3</var>(1) an individual retirement account under section 408(a) of the federal Internal <br/>
<a id="pl.89.4"></a><var>89.4</var>Revenue Code;<br/>
<a id="pl.89.5"></a><var>89.5</var>(2) an individual retirement annuity plan under section 408(b) of the federal Internal <br/>
<a id="pl.89.6"></a><var>89.6</var>Revenue Code;<br/>
<a id="pl.89.7"></a><var>89.7</var>(3) an annuity plan under section 403(a) of the federal Internal Revenue Code;<br/>
<a id="pl.89.8"></a><var>89.8</var>(4) a qualified trust plan under section 401(a) of the federal Internal Revenue Code <br/>
<a id="pl.89.9"></a><var>89.9</var>that accepts the distributee's eligible rollover distribution;<br/>
<a id="pl.89.10"></a><var>89.10</var>(5) an annuity contract under section 403(b) of the federal Internal Revenue Code; or<br/>
<a id="pl.89.11"></a><var>89.11</var>(6) an eligible deferred compensation plan under section 457(b) of the federal <br/>
<a id="pl.89.12"></a><var>89.12</var>Internal Revenue Code, which is maintained by a state or local government and which <br/>
<a id="pl.89.13"></a><var>89.13</var>agrees to separately account for the amounts transferred into the plan; or<br/>
<a id="pl.89.14"></a><var>89.14</var>(7) in the case of an eligible rollover distribution to a nonspousal beneficiary, an <br/>
<a id="pl.89.15"></a><var>89.15</var>individual account or annuity treated as an inherited individual retirement account under <br/>
<a id="pl.89.16"></a><var>89.16</var>section 402(c)(11) of the federal Internal Revenue Code.<br/>
<a id="pl.89.17"></a><var>89.17</var>(b) For distributions of after-tax contributions which are not includable in gross <br/>
<a id="pl.89.18"></a><var>89.18</var>income, the after-tax portion may be transferred only to an individual retirement account <br/>
<a id="pl.89.19"></a><var>89.19</var>or annuity described in section 408(a) or (b) of the federal Internal Revenue Code, or <br/>
<a id="pl.89.20"></a><var>89.20</var>to a qualified defined contribution plan described in either section 401(a) or 403(a) of <br/>
<a id="pl.89.21"></a><var>89.21</var>the federal Internal Revenue Code, that agrees to separately account for the amounts <br/>
<a id="pl.89.22"></a><var>89.22</var>transferred, including separately accounting for the portion of the distribution which is <br/>
<a id="pl.89.23"></a><var>89.23</var>includable in gross income and the portion of the distribution which is not includable.<br/>
<a id="pl.89.24"></a><var>89.24</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2009.<br/>
<br/>
<a id="bill.4.46.0"></a><a id="pl.89.25"></a><var>89.25</var>    Sec. 46. Minnesota Statutes 2008, section 356.635, subdivision 7, is amended to read:<br/>
<a id="pl.89.26"></a><var>89.26</var>    Subd. 7. <b>Distributee.</b> A "distributee" is:<br/>
<a id="pl.89.27"></a><var>89.27</var>(1) an employee or a former employee;<br/>
<a id="pl.89.28"></a><var>89.28</var>(2) the surviving spouse of an employee or former employee; or<br/>
<a id="pl.89.29"></a><var>89.29</var>(3) the former spouse of the employee or former employee who is the alternate <br/>
<a id="pl.89.30"></a><var>89.30</var>payee under a qualified domestic relations order as defined in section 414(p) of the federal <br/>
<a id="pl.89.31"></a><var>89.31</var>Internal Revenue Code, or who is a recipient of a court-ordered equitable distribution of <br/>
<a id="pl.89.32"></a><var>89.32</var>marital property, as provided in section 
         <statute_ref>518.58</statute_ref>.; or <br/>
<a id="pl.89.33"></a><var>89.33</var>(4) a nonspousal beneficiary of an employee or former employee who qualifies <br/>
<a id="pl.89.34"></a><var>89.34</var>for a distribution under the plan and is a designated beneficiary as defined in section <br/>
<a id="pl.89.35"></a><var>89.35</var>401(a)(9)(E) of the federal Internal Revenue Code.<br/>
<a id="pl.90.1"></a><var>90.1</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2009.<br/>
<br/>
<a id="bill.4.47.0"></a><a id="pl.90.2"></a><var>90.2</var>    Sec. 47. Minnesota Statutes 2008, section 356.96, subdivision 5, is amended to read:<br/>
<a id="pl.90.3"></a><var>90.3</var>    Subd. 5. <b>Petition for review.</b> (a) A person who claims a right under subdivision 2 <br/>
<a id="pl.90.4"></a><var>90.4</var>may petition for a review of that decision by the governing board of the covered pension <br/>
<a id="pl.90.5"></a><var>90.5</var>plan.<br/>
<a id="pl.90.6"></a><var>90.6</var>    (b) A petition under this section must be sent to the chief administrative officer <br/>
<a id="pl.90.7"></a><var>90.7</var>by mail and must be postmarked no later than 60 days after the person received the <br/>
<a id="pl.90.8"></a><var>90.8</var>notice required by subdivision 3. The petition must include the person's statement of <br/>
<a id="pl.90.9"></a><var>90.9</var>the reason or reasons that the person believes the decision of the chief administrative <br/>
<a id="pl.90.10"></a><var>90.10</var>officer should be reversed or modified. The petition may include all documentation and <br/>
<a id="pl.90.11"></a><var>90.11</var>written materials that the petitioner deems to be relevant. In developing a record for <br/>
<a id="pl.90.12"></a><var>90.12</var>review by the board when a decision is appealed, the executive director may direct that the <br/>
<a id="pl.90.13"></a><var>90.13</var>applicant participate in a fact-finding session conducted by an administrative law judge <br/>
<a id="pl.90.14"></a><var>90.14</var>assigned by the Office of Administrative Hearings and, as applicable, participate in a <br/>
<a id="pl.90.15"></a><var>90.15</var>vocational assessment conducted by a qualified rehabilitation counselor on contract with <br/>
<a id="pl.90.16"></a><var>90.16</var>the applicable retirement system.<br/>
<a id="pl.90.17"></a><var>90.17</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.4.48.0"></a><a id="pl.90.18"></a><var>90.18</var>    Sec. 48. Laws 2006, chapter 271, article 5, section 5, as amended by Laws 2008, <br/>
<a id="pl.90.19"></a><var>90.19</var>chapter 349, article 5, section 36, is amended to read:<br/>
<a id="pl.90.20"></a><var>90.20</var>    Sec. 5. <b>EFFECTIVE DATE.</b><br/>
<a id="pl.90.21"></a><var>90.21</var>    (a) Sections 1, 3, and 4 are effective the day following final enactment and section 3 <br/>
<a id="pl.90.22"></a><var>90.22</var>has effect retroactively from July 25, 2005. <br/>
<a id="pl.90.23"></a><var>90.23</var>    (b) Section 2 with respect to the Cannon Falls Hospital District is effective upon the <br/>
<a id="pl.90.24"></a><var>90.24</var>latter of: <br/>
<a id="pl.90.25"></a><var>90.25</var>    (1) the day after the governing body of the Cannon Falls Hospital District and its <br/>
<a id="pl.90.26"></a><var>90.26</var>chief clerical officer meet the requirements under Minnesota Statutes, section 
         <statute_ref>645.021, <br/>
<a id="pl.90.27"></a><var>90.27</var>subdivisions 2
         </statute_ref> and 3; and <br/>
<a id="pl.90.28"></a><var>90.28</var>    (2) the first day of the month following certification to the Cannon Falls Hospital <br/>
<a id="pl.90.29"></a><var>90.29</var>District by the executive director of the Public Employees Retirement Association that the <br/>
<a id="pl.90.30"></a><var>90.30</var>actuarial accrued liability of the special benefit coverage proposed for extension to the <br/>
<a id="pl.90.31"></a><var>90.31</var>privatized City of Cannon Falls Hospital employees under section 1 does not exceed the <br/>
<a id="pl.90.32"></a><var>90.32</var>actuarial gain otherwise to be accrued by the Public Employees Retirement Association, as <br/>
<a id="pl.90.33"></a><var>90.33</var>calculated by the consulting actuary retained under Minnesota Statutes, section 
         <statute_ref>356.214</statute_ref>. <br/>
<a id="pl.91.1"></a><var>91.1</var>The cost of the actuarial calculations must be borne by the current employer or by the <br/>
<a id="pl.91.2"></a><var>91.2</var>entity which is the employer following the privatization. <br/>
<a id="pl.91.3"></a><var>91.3</var>    (c) Section 2, with respect to Clearwater County Memorial Hospital, is effective <br/>
<a id="pl.91.4"></a><var>91.4</var>upon the latter of: <br/>
<a id="pl.91.5"></a><var>91.5</var>    (1) the day after the governing body of Clearwater County and its chief clerical <br/>
<a id="pl.91.6"></a><var>91.6</var>officer meet the requirements under Minnesota Statutes, section 
         <statute_ref>645.021, subdivisions 2</statute_ref> <br/>
<a id="pl.91.7"></a><var>91.7</var>and 3, except that the certificate of approval must be filed before January 1, 2009 2010; and <br/>
<a id="pl.91.8"></a><var>91.8</var>    (2) the first day of the month following certification to Clearwater County by the <br/>
<a id="pl.91.9"></a><var>91.9</var>executive director of the Public Employees Retirement Association that the actuarial <br/>
<a id="pl.91.10"></a><var>91.10</var>accrued liability of the special benefit coverage proposed for extension to the privatized <br/>
<a id="pl.91.11"></a><var>91.11</var>Clearwater Health Services employees under section 2 does not exceed the actuarial gain <br/>
<a id="pl.91.12"></a><var>91.12</var>otherwise to be accrued by the Public Employees Retirement Association, as calculated by <br/>
<a id="pl.91.13"></a><var>91.13</var>the consulting actuary retained under Minnesota Statutes, section 
         <statute_ref>356.214</statute_ref>. The cost of <br/>
<a id="pl.91.14"></a><var>91.14</var>the actuarial calculations must be borne by the current employer or by the entity which is <br/>
<a id="pl.91.15"></a><var>91.15</var>the employer following the privatization. <br/>
<a id="pl.91.16"></a><var>91.16</var>    (d) Section 2 with respect to the Dassel Lakeside Community Home is effective <br/>
<a id="pl.91.17"></a><var>91.17</var>upon the latter of: <br/>
<a id="pl.91.18"></a><var>91.18</var>    (1) the day after the governing body of the city of Dassel and its chief clerical officer <br/>
<a id="pl.91.19"></a><var>91.19</var>timely complete compliance with Minnesota Statutes, section 
         <statute_ref>645.021, subdivisions 2</statute_ref> <br/>
<a id="pl.91.20"></a><var>91.20</var>and 3; and <br/>
<a id="pl.91.21"></a><var>91.21</var>    (2) the first day of the month next following certification to the Dassel City <br/>
<a id="pl.91.22"></a><var>91.22</var>Council by the executive director of the Public Employees Retirement Association that <br/>
<a id="pl.91.23"></a><var>91.23</var>the actuarial accrued liability of the special benefit coverage proposed for extension to <br/>
<a id="pl.91.24"></a><var>91.24</var>the privatized Dassel Lakeside Community Home employees under section 2 does not <br/>
<a id="pl.91.25"></a><var>91.25</var>exceed the actuarial gain otherwise to be accrued by the Public Employees Retirement <br/>
<a id="pl.91.26"></a><var>91.26</var>Association, as calculated by the consulting actuary retained under Minnesota Statutes, <br/>
<a id="pl.91.27"></a><var>91.27</var>section 
         <statute_ref>356.214</statute_ref>. The cost of the actuarial calculations must be borne by the city of Dassel <br/>
<a id="pl.91.28"></a><var>91.28</var>or by the entity which is the employer following the privatization.<br/>
<a id="pl.91.29"></a><var>91.29</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.4.49.0"></a><a id="pl.91.30"></a><var>91.30</var>    Sec. 49. <b>CITY OF DULUTH AND DULUTH AIRPORT AUTHORITY; </b><br/>
<a id="pl.91.31"></a><var>91.31</var><b>CORRECTING ERRONEOUS EMPLOYEE DEDUCTIONS, EMPLOYER </b><br/>
<a id="pl.91.32"></a><var>91.32</var><b>CONTRIBUTIONS AND ADJUSTING OVERPAID BENEFITS.</b><br/>
<a id="pl.91.33"></a><var>91.33</var>    Subdivision 1. <b>Application.</b> Notwithstanding any provisions of Minnesota Statutes <br/>
<a id="pl.91.34"></a><var>91.34</var>2008, section 353.27, subdivisions 7 and 7b, or Minnesota Statutes 2008, chapters 353 <br/>
<a id="pl.91.35"></a><var>91.35</var>and 356, to the contrary, this section establishes the procedures by which the executive <br/>
<a id="pl.92.1"></a><var>92.1</var>director of the Public Employees Retirement Association shall adjust erroneous employee <br/>
<a id="pl.92.2"></a><var>92.2</var>deductions and employer contributions paid on behalf of active employees and former <br/>
<a id="pl.92.3"></a><var>92.3</var>members by the city of Duluth and by the Duluth Airport Authority on amounts <br/>
<a id="pl.92.4"></a><var>92.4</var>determined by the executive director to be invalid salary under Minnesota Statutes, section <br/>
<a id="pl.92.5"></a><var>92.5</var>353.01, subdivision 10, reported between January 1, 1997, and October 23, 2008, and for <br/>
<a id="pl.92.6"></a><var>92.6</var>adjusting benefits that were paid to former members and their beneficiaries based upon <br/>
<a id="pl.92.7"></a><var>92.7</var>invalid salary amounts.<br/>
<a id="pl.92.8"></a><var>92.8</var>    Subd. 2. <b>Refunds of employee deductions.</b> (a) The executive director shall refund <br/>
<a id="pl.92.9"></a><var>92.9</var>to active employees or former members who are not receiving retirement annuities or <br/>
<a id="pl.92.10"></a><var>92.10</var>benefits all erroneous employee deductions identified by the city of Duluth or by the <br/>
<a id="pl.92.11"></a><var>92.11</var>Duluth Airport Authority as deductions taken from amounts determined to be invalid <br/>
<a id="pl.92.12"></a><var>92.12</var>salary. The refunds must include interest at the rate specified in Minnesota Statutes, <br/>
<a id="pl.92.13"></a><var>92.13</var>section 353.34, subdivision 2, from the date each invalid employee deduction was received <br/>
<a id="pl.92.14"></a><var>92.14</var>through the date each refund is paid.<br/>
<a id="pl.92.15"></a><var>92.15</var>(b) The refund payment for active employees must be sent to the applicable <br/>
<a id="pl.92.16"></a><var>92.16</var>governmental subdivision which must pay the refunded employee deductions plus interest <br/>
<a id="pl.92.17"></a><var>92.17</var>to the active members who are employees of the city of Duluth or who are employees of <br/>
<a id="pl.92.18"></a><var>92.18</var>the Duluth Airport Authority, as applicable.<br/>
<a id="pl.92.19"></a><var>92.19</var>(c) Refunds to former members must be mailed by the executive director of the <br/>
<a id="pl.92.20"></a><var>92.20</var>Public Employees Retirement Association to the former member's last known address.<br/>
<a id="pl.92.21"></a><var>92.21</var>    Subd. 3. <b>Benefit adjustments.</b> (a) For a former member who is receiving a <br/>
<a id="pl.92.22"></a><var>92.22</var>retirement annuity or disability benefit, or for a person receiving an optional annuity or <br/>
<a id="pl.92.23"></a><var>92.23</var>survivor benefit, the executive director must:<br/>
<a id="pl.92.24"></a><var>92.24</var>(1) adjust the annuity or benefit payment to the correct monthly benefit amount <br/>
<a id="pl.92.25"></a><var>92.25</var>payable by reducing the average salary under Minnesota Statutes, section 353.01, <br/>
<a id="pl.92.26"></a><var>92.26</var>subdivision 17a, by the invalid salary amounts;<br/>
<a id="pl.92.27"></a><var>92.27</var>(2) determine the amount of the overpaid benefits paid from the effective date of <br/>
<a id="pl.92.28"></a><var>92.28</var>the annuity or benefit payment to the first of the month in which the monthly benefit <br/>
<a id="pl.92.29"></a><var>92.29</var>amount is corrected;<br/>
<a id="pl.92.30"></a><var>92.30</var>(3) calculate the amount of employee deductions taken in error on invalid salary, <br/>
<a id="pl.92.31"></a><var>92.31</var>including interest at the rate specified in Minnesota Statutes, section 353.34, subdivision 2, <br/>
<a id="pl.92.32"></a><var>92.32</var>from the date each invalid employee deduction was received through the date the annuity <br/>
<a id="pl.92.33"></a><var>92.33</var>or benefit is adjusted as provided under clause (1); and<br/>
<a id="pl.92.34"></a><var>92.34</var>(4) determine the net amount of overpaid benefits by reducing the amount of the <br/>
<a id="pl.92.35"></a><var>92.35</var>overpaid annuity or benefit as determined in clause (2) by the amount of the erroneous <br/>
<a id="pl.92.36"></a><var>92.36</var>employee deductions with interest determined in clause (3).<br/>
<a id="pl.93.1"></a><var>93.1</var>(b) If a former member's erroneous employee deductions plus interest determined <br/>
<a id="pl.93.2"></a><var>93.2</var>under this section exceeds the amount of the person's overpaid benefits, the balance must <br/>
<a id="pl.93.3"></a><var>93.3</var>be refunded to the person to whom the annuity or benefit is being paid.<br/>
<a id="pl.93.4"></a><var>93.4</var>(c) The executive director shall recover the net amount of all overpaid annuities or <br/>
<a id="pl.93.5"></a><var>93.5</var>benefits as provided under subdivision 4.<br/>
<a id="pl.93.6"></a><var>93.6</var>    Subd. 4. <b>Employer credits and obligations.</b> (a) The executive director shall <br/>
<a id="pl.93.7"></a><var>93.7</var>provide a credit without interest to the city of Duluth and to the Duluth Airport Authority <br/>
<a id="pl.93.8"></a><var>93.8</var>for the amount of that governmental subdivision's erroneous employer contributions. The <br/>
<a id="pl.93.9"></a><var>93.9</var>credit must first be used to offset the net amount of the overpaid retirement annuities and <br/>
<a id="pl.93.10"></a><var>93.10</var>the disability and survivor benefits that remains after applying the amount of erroneous <br/>
<a id="pl.93.11"></a><var>93.11</var>employee deductions with interest as provided under subdivision 3, paragraph (a), <br/>
<a id="pl.93.12"></a><var>93.12</var>clause (4). The remaining erroneous employer contributions, if any, must be credited <br/>
<a id="pl.93.13"></a><var>93.13</var>against future employer contributions required to be paid by the applicable governmental <br/>
<a id="pl.93.14"></a><var>93.14</var>subdivision. If the overpaid benefits exceed the employer contribution credit, the balance <br/>
<a id="pl.93.15"></a><var>93.15</var>of the overpaid benefits is the obligation of the city of Duluth or the Duluth Airport <br/>
<a id="pl.93.16"></a><var>93.16</var>Authority, whichever is applicable.<br/>
<a id="pl.93.17"></a><var>93.17</var>(b) The Public Employees Retirement Association board of trustees shall determine <br/>
<a id="pl.93.18"></a><var>93.18</var>the period of time and manner for the collection of overpaid retirement annuities and <br/>
<a id="pl.93.19"></a><var>93.19</var>benefits, if any, from the city of Duluth and the Duluth Airport Authority.<br/>
<a id="pl.93.20"></a><var>93.20</var><b>EFFECTIVE DATE.</b>(a) This section is effective for the city of Duluth the day after <br/>
<a id="pl.93.21"></a><var>93.21</var>the Duluth city council and the chief clerical officer of the city of Duluth timely complete <br/>
<a id="pl.93.22"></a><var>93.22</var>their compliance with Minnesota Statutes, section 645.021, subdivisions 2 and 3, for <br/>
<a id="pl.93.23"></a><var>93.23</var>members who are, and former members who were, employees of the city of Duluth.<br/>
<a id="pl.93.24"></a><var>93.24</var>(b) This section is effective for the Duluth Airport Authority the day after the Duluth <br/>
<a id="pl.93.25"></a><var>93.25</var>Airport Authority and the chief clerical officer of the Duluth Airport Authority timely <br/>
<a id="pl.93.26"></a><var>93.26</var>complete their compliance with Minnesota Statutes, section 645.021, subdivisions 2 <br/>
<a id="pl.93.27"></a><var>93.27</var>and 3, for members who are, and former members who were, employees of the Duluth <br/>
<a id="pl.93.28"></a><var>93.28</var>Airport Authority.<br/>
<br/>
<a id="bill.4.50.0"></a><a id="pl.93.29"></a><var>93.29</var>    Sec. 50. <b>APPLICATION OF PUBLIC EMPLOYEES RETIREMENT </b><br/>
<a id="pl.93.30"></a><var>93.30</var><b>ASSOCIATION ERRONEOUS RECEIPTS AND DISBURSEMENTS PROVISION; </b><br/>
<a id="pl.93.31"></a><var>93.31</var><b>ELECTION.</b><br/>
<a id="pl.93.32"></a><var>93.32</var>(a) If adjustments under Minnesota Statutes, section 353.27, subdivision 7, due <br/>
<a id="pl.93.33"></a><var>93.33</var>to invalid salary amounts are in process as of the effective date of this section for <br/>
<a id="pl.93.34"></a><var>93.34</var>employees or former employees of a governmental subdivision, the governing body of the <br/>
<a id="pl.93.35"></a><var>93.35</var>governmental subdivision may elect to have the statute of limitations under Minnesota <br/>
<a id="pl.94.1"></a><var>94.1</var>Statutes, section 353.27, subdivision 7, paragraphs (c) and (g), apply to adjustments or <br/>
<a id="pl.94.2"></a><var>94.2</var>corrections in process as of the effective date of Minnesota Statutes, section 353.27, <br/>
<a id="pl.94.3"></a><var>94.3</var>subdivision 7, by a resolution of the governing body transmitted to the Public Employees <br/>
<a id="pl.94.4"></a><var>94.4</var>Retirement Association executive director within 90 days after the effective date of this <br/>
<a id="pl.94.5"></a><var>94.5</var>section.<br/>
<a id="pl.94.6"></a><var>94.6</var>(b) If the governing body of the governmental subdivision declines the treatment <br/>
<a id="pl.94.7"></a><var>94.7</var>permitted under paragraph (a) or fails to submit a resolution in a timely manner, the statute <br/>
<a id="pl.94.8"></a><var>94.8</var>of limitations does not apply to adjustments or corrections in process as of the effective <br/>
<a id="pl.94.9"></a><var>94.9</var>date.<br/>
<a id="pl.94.10"></a><var>94.10</var><b>EFFECTIVE DATE.</b>This section is effective the day after final enactment.<br/>
<br/>
<a id="bill.4.51.0"></a><a id="pl.94.11"></a><var>94.11</var>    Sec. 51. <b> REPEALER.</b><br/>
<a id="pl.94.12"></a><var>94.12</var>Minnesota Statutes 2008, sections 354.06, subdivision 6; and 354.55, subdivision <br/>
<a id="pl.94.13"></a><var>94.13</var>14, are repealed.<br/>
<a id="pl.94.14"></a><var>94.14</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.5.0.0"></a>

<a id="bill.5.1.0"></a><a id="pl.94.17"></a><var>94.17</var>    Section 1. Minnesota Statutes 2008, section 353.01, subdivision 11b, is amended to <br/>
<a id="pl.94.18"></a><var>94.18</var>read:<br/>
<a id="pl.94.19"></a><var>94.19</var>    Subd. 11b. <b>Termination of membership.</b> (a) "Termination of membership" means <br/>
<a id="pl.94.20"></a><var>94.20</var>the conclusion of membership in the association for a person who has not terminated <br/>
<a id="pl.94.21"></a><var>94.21</var>public service under subdivision 11a and occurs:<br/>
<a id="pl.94.22"></a><var>94.22</var>(1) when a person files a written election with the association to discontinue <br/>
<a id="pl.94.23"></a><var>94.23</var>employee deductions under section 
         <statute_ref>353.27, subdivision 7</statute_ref>, paragraph (a), clause (1);<br/>
<a id="pl.94.24"></a><var>94.24</var>(2) when a city manager files a written election with the association to discontinue <br/>
<a id="pl.94.25"></a><var>94.25</var>employee deductions under section 
         <statute_ref>353.028</statute_ref>, subdivision 2; or<br/>
<a id="pl.94.26"></a><var>94.26</var>(3) when a member transfers to a temporary position and becomes excluded from <br/>
<a id="pl.94.27"></a><var>94.27</var>membership under subdivision 2b, clause (4).; or <br/>
<a id="pl.94.28"></a><var>94.28</var>(4) when a member is approved to participate in the postretirement option authorized <br/>
<a id="pl.94.29"></a><var>94.29</var>under section 353.371.<br/>
<a id="pl.94.30"></a><var>94.30</var>(b) The termination of membership under clause clauses (3) and (4) must be reported <br/>
<a id="pl.94.31"></a><var>94.31</var>to the association by the governmental subdivision.<br/>
<a id="pl.94.32"></a><var>94.32</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.5.2.0"></a><a id="pl.95.1"></a><var>95.1</var>    Sec. 2. <b>[353.371] POSTRETIREMENT OPTION.</b><br/>
<a id="pl.95.2"></a><var>95.2</var>    Subdivision 1. <b>Eligibility.</b> (a) This section applies to a basic or coordinated member <br/>
<a id="pl.95.3"></a><var>95.3</var>of the general employees retirement plan of the Public Employees Retirement Association <br/>
<a id="pl.95.4"></a><var>95.4</var>who:<br/>
<a id="pl.95.5"></a><var>95.5</var>(1) for at least the five years immediately preceding separation under clause (2), was <br/>
<a id="pl.95.6"></a><var>95.6</var>regularly scheduled to work 1,044 or more hours per year in a position covered by the <br/>
<a id="pl.95.7"></a><var>95.7</var>general employees retirement plan of the Public Employees Retirement Association;<br/>
<a id="pl.95.8"></a><var>95.8</var>(2) terminates membership as defined under section 353.01, subdivision 11b; <br/>
<a id="pl.95.9"></a><var>95.9</var>(3) at the time of termination under clause (2), was at least age 62 and met the age <br/>
<a id="pl.95.10"></a><var>95.10</var>and service requirements necessary to receive a retirement annuity from the plan and <br/>
<a id="pl.95.11"></a><var>95.11</var>satisfied requirements for the commencement of the retirement annuity;<br/>
<a id="pl.95.12"></a><var>95.12</var>(4) agrees to accept a postretirement option position with the same or a different <br/>
<a id="pl.95.13"></a><var>95.13</var>governmental subdivision, working a reduced schedule that is both:<br/>
<a id="pl.95.14"></a><var>95.14</var>(i) a reduction of at least 25 percent from the employee's number of previously <br/>
<a id="pl.95.15"></a><var>95.15</var>regularly scheduled work hours; and <br/>
<a id="pl.95.16"></a><var>95.16</var>(ii) 1,044 hours or less in public; and<br/>
<a id="pl.95.17"></a><var>95.17</var>(5) is not eligible for participation in the state employee postretirement option <br/>
<a id="pl.95.18"></a><var>95.18</var>program under section 43A.346.<br/>
<a id="pl.95.19"></a><var>95.19</var>(b) For purposes of this section, the length of separation requirement and termination <br/>
<a id="pl.95.20"></a><var>95.20</var>of service requirement prohibiting return to work agreements under section 353.01, <br/>
<a id="pl.95.21"></a><var>95.21</var>subdivisions 11a and 28, are not applicable.<br/>
<a id="pl.95.22"></a><var>95.22</var>    Subd. 2. <b>Annuity reduction not applicable.</b> Notwithstanding any law to the <br/>
<a id="pl.95.23"></a><var>95.23</var>contrary, the provisions of section 353.37 governing annuities of reemployed annuitants <br/>
<a id="pl.95.24"></a><var>95.24</var>do not apply for the duration of a terminated member's employment in a postretirement <br/>
<a id="pl.95.25"></a><var>95.25</var>option position.<br/>
<a id="pl.95.26"></a><var>95.26</var>    Subd. 3. <b>Governing body discretion.</b> The governing body of the governmental <br/>
<a id="pl.95.27"></a><var>95.27</var>subdivision has sole discretion to determine if and the extent to which a postretirement <br/>
<a id="pl.95.28"></a><var>95.28</var>option position under this section is available to a terminated member. Any offer of such <br/>
<a id="pl.95.29"></a><var>95.29</var>a position must be made in writing to the person by the governing body's designee in a <br/>
<a id="pl.95.30"></a><var>95.30</var>manner prescribed by the executive director.<br/>
<a id="pl.95.31"></a><var>95.31</var>    Subd. 4. <b>Duration.</b> Postretirement option employment shall be for an initial period <br/>
<a id="pl.95.32"></a><var>95.32</var>not to exceed one year. At the end of the initial period, the governing body has sole <br/>
<a id="pl.95.33"></a><var>95.33</var>discretion to determine if the offer of a postretirement option position will be renewed, <br/>
<a id="pl.95.34"></a><var>95.34</var>renewed with modifications, or terminated. Postretirement option employment may be <br/>
<a id="pl.95.35"></a><var>95.35</var>renewed annually, but may not be renewed after the individual attains retirement age as <br/>
<a id="pl.95.36"></a><var>95.36</var>defined in United States Code, title 42, section 416(l). <br/>
<a id="pl.96.1"></a><var>96.1</var>    Subd. 5. <b>Copy to fund.</b> The appointing authority shall provide the Public <br/>
<a id="pl.96.2"></a><var>96.2</var>Employees Retirement Association with documentation, as prescribed by the executive <br/>
<a id="pl.96.3"></a><var>96.3</var>director, of the terms of any agreement entered into with a member who accepts continuing <br/>
<a id="pl.96.4"></a><var>96.4</var>employment with the appointing authority under the terms of this section, and any <br/>
<a id="pl.96.5"></a><var>96.5</var>subsequent renewal agreement.<br/>
<a id="pl.96.6"></a><var>96.6</var>    Subd. 6. <b>No service credit.</b> Notwithstanding any law to the contrary, a person <br/>
<a id="pl.96.7"></a><var>96.7</var>may not earn service credit in the general employees retirement plan of the Public <br/>
<a id="pl.96.8"></a><var>96.8</var>Employees Retirement Association for employment covered under this section, and <br/>
<a id="pl.96.9"></a><var>96.9</var>employer contributions and payroll deductions for the retirement fund must not be made <br/>
<a id="pl.96.10"></a><var>96.10</var>based on earnings of a person working under an agreement covered by this section. No <br/>
<a id="pl.96.11"></a><var>96.11</var>change may be made to a monthly annuity or retirement allowance based on employment <br/>
<a id="pl.96.12"></a><var>96.12</var>under this section.<br/>
<a id="pl.96.13"></a><var>96.13</var>    Subd. 7. <b>Subsequent employment.</b> If a person has been in a postretirement option <br/>
<a id="pl.96.14"></a><var>96.14</var>position and accepts any other position in public service beyond the period of time for <br/>
<a id="pl.96.15"></a><var>96.15</var>which the person participated in the postretirement option provided under this section, the <br/>
<a id="pl.96.16"></a><var>96.16</var>person may not earn service credit in the general employees retirement plan of the Public <br/>
<a id="pl.96.17"></a><var>96.17</var>Employees Retirement Association, no employer contributions or payroll deductions for <br/>
<a id="pl.96.18"></a><var>96.18</var>the retirement fund may be made, and the provisions of section 353.37 apply.<br/>
<a id="pl.96.19"></a><var>96.19</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment <br/>
<a id="pl.96.20"></a><var>96.20</var>and expires on June 30, 2011. Individuals must not be appointed to a postretirement option <br/>
<a id="pl.96.21"></a><var>96.21</var>position after that date.<br/>
<br/>
<a id="bill.6.0.0"></a>

<a id="bill.6.1.0"></a><a id="pl.96.24"></a><var>96.24</var>    Section 1. <b>[136F.481] EARLY SEPARATION INCENTIVE PROGRAM.</b><br/>
<a id="pl.96.25"></a><var>96.25</var>(a) Notwithstanding any provision of law to the contrary, the Board of Trustees <br/>
<a id="pl.96.26"></a><var>96.26</var>of the Minnesota State Colleges and Universities may offer a targeted early separation <br/>
<a id="pl.96.27"></a><var>96.27</var>incentive program for its employees.<br/>
<a id="pl.96.28"></a><var>96.28</var>(b) The early separation incentive program may include one or both of the following:<br/>
<a id="pl.96.29"></a><var>96.29</var>(1) cash incentives, not to exceed one year of base salary; or <br/>
<a id="pl.96.30"></a><var>96.30</var>(2) employer contributions to the postretirement healthcare savings plan established <br/>
<a id="pl.96.31"></a><var>96.31</var>under section 352.98.<br/>
<a id="pl.96.32"></a><var>96.32</var>(c) To be eligible to receive an incentive, an employee must be at least age 55 <br/>
<a id="pl.96.33"></a><var>96.33</var>and must have at least five years of employment by the Minnesota State Colleges and <br/>
<a id="pl.96.34"></a><var>96.34</var>Universities System. The board of trustees shall establish the eligibility requirements <br/>
<a id="pl.97.1"></a><var>97.1</var>for system employees to receive an incentive. The board of trustees shall file a copy <br/>
<a id="pl.97.2"></a><var>97.2</var>of its proposed eligibility requirements with the chairs and ranking members of the <br/>
<a id="pl.97.3"></a><var>97.3</var>Senate Committee on Higher Education and the Higher Education Budget and Policy <br/>
<a id="pl.97.4"></a><var>97.4</var>Division of the Senate Committee on Finance and with the chair and ranking members of <br/>
<a id="pl.97.5"></a><var>97.5</var>the Higher Education and Workforce Development Finance and Policy Division of the <br/>
<a id="pl.97.6"></a><var>97.6</var>Finance Committee of the House of Representatives at least 30 days before their final <br/>
<a id="pl.97.7"></a><var>97.7</var>adoption by the board of trustees, shall post the same document on the system website at <br/>
<a id="pl.97.8"></a><var>97.8</var>the same time, and shall hold a public hearing on the proposed eligibility requirements. <br/>
<a id="pl.97.9"></a><var>97.9</var>The type and any additional amount of the incentive to be offered may vary by employee <br/>
<a id="pl.97.10"></a><var>97.10</var>classification, as specified by the board.<br/>
<a id="pl.97.11"></a><var>97.11</var>(d) The president of a college or university, consistent with paragraphs (b) and <br/>
<a id="pl.97.12"></a><var>97.12</var>(c), may designate: <br/>
<a id="pl.97.13"></a><var>97.13</var>(1) specific departments or programs at the college or university whose employees <br/>
<a id="pl.97.14"></a><var>97.14</var>are eligible to be offered the incentive program; or<br/>
<a id="pl.97.15"></a><var>97.15</var>(2) positions at the college or university eligible to be offered the incentive program.<br/>
<a id="pl.97.16"></a><var>97.16</var>(e) The chancellor, consistent with paragraphs (b) and (c), may designate:<br/>
<a id="pl.97.17"></a><var>97.17</var>(1) system office divisions whose employees are eligible to be offered the incentive <br/>
<a id="pl.97.18"></a><var>97.18</var>program; or<br/>
<a id="pl.97.19"></a><var>97.19</var>(2) positions at the system office eligible to be offered the incentive program.<br/>
<a id="pl.97.20"></a><var>97.20</var>(f) Acceptance of the offered incentive must be voluntary on the part of the employee <br/>
<a id="pl.97.21"></a><var>97.21</var>and must be in writing. The incentive may only be offered at the sole discretion of the <br/>
<a id="pl.97.22"></a><var>97.22</var>president of the applicable college or university.<br/>
<a id="pl.97.23"></a><var>97.23</var>(g) A decision by the president of a college or university or by the chancellor not to <br/>
<a id="pl.97.24"></a><var>97.24</var>offer an incentive may not be challenged.<br/>
<a id="pl.97.25"></a><var>97.25</var>(h) The cost of the incentive is payable by the college or university on whose behalf <br/>
<a id="pl.97.26"></a><var>97.26</var>the president offered the incentive or from the system office budget if the chancellor <br/>
<a id="pl.97.27"></a><var>97.27</var>offered the incentive. If a college or university is merged, the remaining cost of any <br/>
<a id="pl.97.28"></a><var>97.28</var>early separation incentive must be borne by the successor institution. If a college or <br/>
<a id="pl.97.29"></a><var>97.29</var>university is closed, the remaining cost of any early separation incentive must be borne <br/>
<a id="pl.97.30"></a><var>97.30</var>by the board of trustees.<br/>
<a id="pl.97.31"></a><var>97.31</var>(i) Annually, the chancellor and the president of each college or university must <br/>
<a id="pl.97.32"></a><var>97.32</var>report on the number and types of early separation incentives which were offered and <br/>
<a id="pl.97.33"></a><var>97.33</var>utilized under this section. The report must be filed annually with the board of trustees and <br/>
<a id="pl.97.34"></a><var>97.34</var>with the Legislative Reference Library on or before September 1.<br/>
<a id="pl.97.35"></a><var>97.35</var><b>EFFECTIVE DATE; SUNSET.</b>This section is effective the day following final <br/>
<a id="pl.97.36"></a><var>97.36</var>enactment and expires June 30, 2014.<br/>
<br/>
<a id="bill.6.2.0"></a><a id="pl.98.1"></a><var>98.1</var>    Sec. 2. <b>[136F.482] APPLICATION OF OTHER LAWS.</b><br/>
<a id="pl.98.2"></a><var>98.2</var>Unilateral implementation of section 136F.481 by the Board of Trustees of the <br/>
<a id="pl.98.3"></a><var>98.3</var>Minnesota State Colleges and Universities, by the chancellor, or by a president of a college <br/>
<a id="pl.98.4"></a><var>98.4</var>or university is not an unfair labor practice under chapter 179A.<br/>
<a id="pl.98.5"></a><var>98.5</var><b>EFFECTIVE DATE; SUNSET.</b>This section is effective the day following final <br/>
<a id="pl.98.6"></a><var>98.6</var>enactment and expires June 30, 2014.<br/>
<br/>
<a id="bill.6.3.0"></a><a id="pl.98.7"></a><var>98.7</var>    Sec. 3. Minnesota Statutes 2008, section 354B.21, subdivision 2, is amended to read:<br/>
<a id="pl.98.8"></a><var>98.8</var>    Subd. 2. <b>Coverage; election.</b> (a) For Eligible persons who were employed by <br/>
<a id="pl.98.9"></a><var>98.9</var>the former state university system or the former community college system before May <br/>
<a id="pl.98.10"></a><var>98.10</var>1, 1995, the person has the retirement coverage that the person had for employment <br/>
<a id="pl.98.11"></a><var>98.11</var>immediately before May 1, 1995.<br/>
<a id="pl.98.12"></a><var>98.12</var>(b) For all other eligible persons (a) Eligible persons who were employed by <br/>
<a id="pl.98.13"></a><var>98.13</var>the Minnesota State Colleges and Universities System on or after June 30, 2009, <br/>
<a id="pl.98.14"></a><var>98.14</var>unless otherwise specified in this section, the eligible person is are authorized to elect <br/>
<a id="pl.98.15"></a><var>98.15</var>prospective Teachers Retirement Association plan coverage rather than coverage by <br/>
<a id="pl.98.16"></a><var>98.16</var>the plan established by this chapter. The election of prospective Teachers Retirement <br/>
<a id="pl.98.17"></a><var>98.17</var>Association plan coverage shall must be made within one year of commencing eligible <br/>
<a id="pl.98.18"></a><var>98.18</var>Minnesota State Colleges and Universities system employment. If an election is not made <br/>
<a id="pl.98.19"></a><var>98.19</var>within the specified election period due to a termination of Minnesota State Colleges and <br/>
<a id="pl.98.20"></a><var>98.20</var>Universities system employment, an election may be made within 90 days of returning to <br/>
<a id="pl.98.21"></a><var>98.21</var>eligible Minnesota State Colleges and Universities system employment. All elections are <br/>
<a id="pl.98.22"></a><var>98.22</var>irrevocable. Prior to Before making an election, the eligible person shall be is covered by <br/>
<a id="pl.98.23"></a><var>98.23</var>the plan indicated as default coverage under subdivision 3.<br/>
<a id="pl.98.24"></a><var>98.24</var>(b) Except as provided in paragraph (c), a purchase of service credit in the Teachers <br/>
<a id="pl.98.25"></a><var>98.25</var>Retirement Association plan for any period or periods of Minnesota State Colleges and <br/>
<a id="pl.98.26"></a><var>98.26</var>Universities system employment occurring prior to before the election under paragraph <br/>
<a id="pl.98.27"></a><var>98.27</var>(b) (a) is prohibited.<br/>
<a id="pl.98.28"></a><var>98.28</var>(c) Notwithstanding paragraphs (a) and (b), a faculty member who is a member of <br/>
<a id="pl.98.29"></a><var>98.29</var>the individual retirement account plan who first achieves tenure or its equivalent at a <br/>
<a id="pl.98.30"></a><var>98.30</var>Minnesota state college or university after June 30, 2009, may elect to transfer retirement <br/>
<a id="pl.98.31"></a><var>98.31</var>coverage under the teachers retirement plan within one year of the faculty member <br/>
<a id="pl.98.32"></a><var>98.32</var>achieving tenure or its equivalent at a Minnesota state college or university. The faculty <br/>
<a id="pl.98.33"></a><var>98.33</var>member electing Teachers Retirement Association coverage under this paragraph must <br/>
<a id="pl.98.34"></a><var>98.34</var>purchase service credit in the Teachers Retirement Association for the entire period of <br/>
<a id="pl.98.35"></a><var>98.35</var>time covered under the individual retirement account plan and the purchase payment <br/>
<a id="pl.99.1"></a><var>99.1</var>amount must be determined under section 356.551. The Teachers Retirement Association <br/>
<a id="pl.99.2"></a><var>99.2</var>may charge a faculty member transferring coverage a reasonable fee to cover the costs <br/>
<a id="pl.99.3"></a><var>99.3</var>associated with computing the actuarial cost of purchasing service credit and making the <br/>
<a id="pl.99.4"></a><var>99.4</var>transfer. A faculty member transferring from the individual retirement account plan to the <br/>
<a id="pl.99.5"></a><var>99.5</var>Teachers Retirement Association may use any balances to the credit of the faculty member <br/>
<a id="pl.99.6"></a><var>99.6</var>in the individual retirement account plan, any balances to the credit of the faculty member <br/>
<a id="pl.99.7"></a><var>99.7</var>in the higher education supplemental retirement plan established under chapter 354C, or <br/>
<a id="pl.99.8"></a><var>99.8</var>any source specified in section 356.441, subdivision 1, to purchase the service credit in the <br/>
<a id="pl.99.9"></a><var>99.9</var>Teachers Retirement Association. If the total amount of payments under this paragraph are <br/>
<a id="pl.99.10"></a><var>99.10</var>less than the total purchase payment amount under section 356.551, the payment amounts <br/>
<a id="pl.99.11"></a><var>99.11</var>must be refunded to the applicable source. The retirement coverage transfer and service <br/>
<a id="pl.99.12"></a><var>99.12</var>credit purchase authority under this paragraph expires with respect to any Minnesota State <br/>
<a id="pl.99.13"></a><var>99.13</var>Colleges and Universities System faculty initially hired after June 30, 2014.<br/>
<a id="pl.99.14"></a><var>99.14</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2009.<br/>
<br/>
<a id="bill.7.0.0"></a>

<a id="pl.99.17"></a><var>99.17</var><b>POSTRETIREMENT ADJUSTMENTS</b><br/>

<a id="bill.7.1.0"></a><a id="pl.99.18"></a><var>99.18</var>    Section 1. Minnesota Statutes 2008, section 354A.29, subdivision 3, is amended to <br/>
<a id="pl.99.19"></a><var>99.19</var>read:<br/>
<a id="pl.99.20"></a><var>99.20</var>    Subd. 3. <b>Postretirement adjustment.</b> (a) The postretirement adjustment described <br/>
<a id="pl.99.21"></a><var>99.21</var>in the articles and bylaws of the St. Paul Teachers Retirement Fund Association this <br/>
<a id="pl.99.22"></a><var>99.22</var>section  must be determined by the executive director of the St. Paul Teachers Retirement <br/>
<a id="pl.99.23"></a><var>99.23</var>Fund Association and approved by the board annually after June 30 using the procedures <br/>
<a id="pl.99.24"></a><var>99.24</var>under this section.<br/>
<a id="pl.99.25"></a><var>99.25</var>(b)  On January 1,each eligible person who has been receiving an annuity or benefit <br/>
<a id="pl.99.26"></a><var>99.26</var>under the articles of incorporation, the bylaws, or this chapter for at least 12 three calendar <br/>
<a id="pl.99.27"></a><var>99.27</var>months as of the end of the fiscal last day of the previous calendar year is eligible to <br/>
<a id="pl.99.28"></a><var>99.28</var>receive a postretirement adjustment of 2.0 percent that is payable each January 1 increase <br/>
<a id="pl.99.29"></a><var>99.29</var>as further specified in this subdivision.<br/>
<a id="pl.99.30"></a><var>99.30</var>(c) A percentage adjustment must be computed and paid under this subdivision to <br/>
<a id="pl.99.31"></a><var>99.31</var>eligible persons under paragraph (b). This adjustment is determined by reference to the <br/>
<a id="pl.99.32"></a><var>99.32</var>Consumer Price Index for urban wage earners and clerical workers all items index as <br/>
<a id="pl.99.33"></a><var>99.33</var>reported by the Bureau of Labor Statistics within the United States Department of Labor <br/>
<a id="pl.99.34"></a><var>99.34</var>each year as part of the determination of annual cost-of-living adjustments to recipients of <br/>
<a id="pl.99.35"></a><var>99.35</var>federal old-age, survivors, and disability insurance. For calculations of the cost-of-living <br/>
<a id="pl.100.1"></a><var>100.1</var>adjustment under paragraph (d), the term "average third quarter Consumer Price Index <br/>
<a id="pl.100.2"></a><var>100.2</var>value" means the sum of the monthly index values as initially reported by the Bureau of <br/>
<a id="pl.100.3"></a><var>100.3</var>Labor Statistics for the months of July, August, and September, divided by 3.<br/>
<a id="pl.100.4"></a><var>100.4</var>(d) Before January 1 of each year, the executive director must calculate the amount <br/>
<a id="pl.100.5"></a><var>100.5</var>of the cost-of-living adjustment by dividing the most recent average third quarter index <br/>
<a id="pl.100.6"></a><var>100.6</var>value by the same average third quarter index value from the previous year, subtract one <br/>
<a id="pl.100.7"></a><var>100.7</var>from the resulting quotient, and express the result as a percentage amount, which must be <br/>
<a id="pl.100.8"></a><var>100.8</var>rounded to the nearest one-tenth of one percent.<br/>
<a id="pl.100.9"></a><var>100.9</var>(e) The amount calculated under paragraph (d) is the full cost-of-living adjustment <br/>
<a id="pl.100.10"></a><var>100.10</var>to be applied as a permanent increase to the regular payment of each eligible member <br/>
<a id="pl.100.11"></a><var>100.11</var>on January 1 of the next calendar year. For any eligible member whose effective date <br/>
<a id="pl.100.12"></a><var>100.12</var>of benefit commencement occurred during the calendar year before the cost-of-living <br/>
<a id="pl.100.13"></a><var>100.13</var>adjustment is applied, the full increase amount must be prorated on the basis of whole <br/>
<a id="pl.100.14"></a><var>100.14</var>calendar quarters in benefit payment status in the calendar year prior to the January 1 on <br/>
<a id="pl.100.15"></a><var>100.15</var>which the cost-of-living adjustment is applied, calculated to the third decimal place.<br/>
<a id="pl.100.16"></a><var>100.16</var>(f) The adjustment may not be less than zero, nor greater than five percent. <br/>
<br/>
<a id="bill.7.2.0"></a><a id="pl.100.17"></a><var>100.17</var>    Sec. 2. <b>BYLAW REVISION AUTHORIZATION.</b><br/>
<a id="pl.100.18"></a><var>100.18</var>Consistent with Minnesota Statutes, section 354A.12, subdivision 4, the board of <br/>
<a id="pl.100.19"></a><var>100.19</var>the St. Paul Teachers Retirement Fund Association shall revise the bylaws or articles of <br/>
<a id="pl.100.20"></a><var>100.20</var>incorporation of the teachers retirement fund association to conform with section 1.<br/>
<br/>
<a id="bill.7.3.0"></a><a id="pl.100.21"></a><var>100.21</var>    Sec. 3. <b> REPEALER.</b><br/>
<a id="pl.100.22"></a><var>100.22</var>Minnesota Statutes 2008, section 354A.29, subdivisions 2, 4, and 5, are repealed.<br/>
<br/>
<a id="bill.7.4.0"></a><a id="pl.100.23"></a><var>100.23</var>    Sec. 4. <b>EFFECTIVE DATE.</b><br/>
<a id="pl.100.24"></a><var>100.24</var>Sections 1 to 3 are effective January 1, 2010, and expire June 30, 2011.<br/>
<br/>
<a id="bill.8.0.0"></a>

<a id="pl.100.27"></a><var>100.27</var><b>ASSOCIATION CHANGES</b><br/>

<a id="bill.8.1.0"></a><a id="pl.100.28"></a><var>100.28</var>    Section 1. Minnesota Statutes 2008, section 69.77, subdivision 4, is amended to read:<br/>
<a id="pl.100.29"></a><var>100.29</var>    Subd. 4. <b>Relief association financial requirements; minimum municipal </b><br/>
<a id="pl.100.30"></a><var>100.30</var><b>obligation.</b> (a) The officers of the relief association shall determine the financial <br/>
<a id="pl.100.31"></a><var>100.31</var>requirements of the relief association and minimum obligation of the municipality for <br/>
<a id="pl.100.32"></a><var>100.32</var>the following calendar year in accordance with the requirements of this subdivision. <br/>
<a id="pl.101.1"></a><var>101.1</var>The financial requirements of the relief association and the minimum obligation of the <br/>
<a id="pl.101.2"></a><var>101.2</var>municipality must be determined on or before the submission date established by the <br/>
<a id="pl.101.3"></a><var>101.3</var>municipality under subdivision 5.<br/>
<a id="pl.101.4"></a><var>101.4</var>(b) The financial requirements of the relief association for the following calendar <br/>
<a id="pl.101.5"></a><var>101.5</var>year must be based on the most recent actuarial valuation or survey of the special fund of <br/>
<a id="pl.101.6"></a><var>101.6</var>the association if more than one fund is maintained by the association, or of the association, <br/>
<a id="pl.101.7"></a><var>101.7</var>if only one fund is maintained, prepared in accordance with sections 
         <statute_ref>356.215, subdivisions <br/>
<a id="pl.101.8"></a><var>101.8</var>4 to 15
         </statute_ref>, and 
         <statute_ref>356.216</statute_ref>, as required under subdivision 10. If an actuarial estimate is prepared <br/>
<a id="pl.101.9"></a><var>101.9</var>by the actuary of the relief association as part of obtaining a modification of the benefit <br/>
<a id="pl.101.10"></a><var>101.10</var>plan of the relief association and the modification is implemented, the actuarial estimate <br/>
<a id="pl.101.11"></a><var>101.11</var>must be used in calculating the subsequent financial requirements of the relief association.<br/>
<a id="pl.101.12"></a><var>101.12</var>(c) If the relief association has an unfunded actuarial accrued liability as reported in <br/>
<a id="pl.101.13"></a><var>101.13</var>the most recent actuarial valuation or survey, the total of the amounts calculated under <br/>
<a id="pl.101.14"></a><var>101.14</var>clauses (1), (2), and (3), constitute the financial requirements of the relief association for <br/>
<a id="pl.101.15"></a><var>101.15</var>the following year. If the relief association does not have an unfunded actuarial accrued <br/>
<a id="pl.101.16"></a><var>101.16</var>liability as reported in the most recent actuarial valuation or survey, the amount calculated <br/>
<a id="pl.101.17"></a><var>101.17</var>under clauses (1) and (2) constitute the financial requirements of the relief association for <br/>
<a id="pl.101.18"></a><var>101.18</var>the following year. The financial requirement elements are:<br/>
<a id="pl.101.19"></a><var>101.19</var>(1) the normal level cost requirement for the following year, expressed as a dollar <br/>
<a id="pl.101.20"></a><var>101.20</var>amount, which must be determined by applying the normal level cost of the relief <br/>
<a id="pl.101.21"></a><var>101.21</var>association as reported in the actuarial valuation or survey and expressed as a percentage <br/>
<a id="pl.101.22"></a><var>101.22</var>of covered payroll to the estimated covered payroll of the active membership of the relief <br/>
<a id="pl.101.23"></a><var>101.23</var>association, including any projected change in the active membership, for the following <br/>
<a id="pl.101.24"></a><var>101.24</var>year;<br/>
<a id="pl.101.25"></a><var>101.25</var>(2) for the Bloomington Fire Department Relief Association, the Fairmont Police <br/>
<a id="pl.101.26"></a><var>101.26</var>Relief Association, and the Virginia Fire Department Relief Association, to the dollar <br/>
<a id="pl.101.27"></a><var>101.27</var>amount of normal cost determined under clause (1) must be added an amount equal to the <br/>
<a id="pl.101.28"></a><var>101.28</var>dollar amount of the administrative expenses of the special fund of the association if more <br/>
<a id="pl.101.29"></a><var>101.29</var>than one fund is maintained by the association, or of the association if only one fund is <br/>
<a id="pl.101.30"></a><var>101.30</var>maintained, for the most recent year, multiplied by the factor of 1.035. The administrative <br/>
<a id="pl.101.31"></a><var>101.31</var>expenses are those authorized under section 
         <statute_ref>69.80</statute_ref>. No amount of administrative expenses <br/>
<a id="pl.101.32"></a><var>101.32</var>under this clause are to be included in the financial requirements of the Minneapolis <br/>
<a id="pl.101.33"></a><var>101.33</var>Firefighters Relief Association or the Minneapolis Police Relief Association; and<br/>
<a id="pl.101.34"></a><var>101.34</var>(3) to the dollar amount of normal cost and expenses determined under clauses <br/>
<a id="pl.101.35"></a><var>101.35</var>(1) and (2) must be added an amount equal to the level annual dollar amount which is <br/>
<a id="pl.101.36"></a><var>101.36</var>sufficient to amortize the unfunded actuarial accrued liability by December 31, 2010, the <br/>
<a id="pl.102.1"></a><var>102.1</var>Fairmont Police Relief Association, the Minneapolis Firefighters Relief Association, <br/>
<a id="pl.102.2"></a><var>102.2</var>and the Virginia Fire Department Relief Association, by the date determined under <br/>
<a id="pl.102.3"></a><var>102.3</var>section 
<statute_ref>356.216, paragraph (a)</statute_ref>, clause (2), for the Bloomington Fire Department Relief <br/>
<a id="pl.102.4"></a><var>102.4</var>Association, and by December 31, 2020, for the Minneapolis Police Relief Association, as <br/>
<a id="pl.102.5"></a><var>102.5</var>determined from the actuarial valuation or survey of the fund, using an interest assumption <br/>
<a id="pl.102.6"></a><var>102.6</var>set at the applicable rate specified in section 
         <statute_ref>356.215, subdivision 8</statute_ref>. The, by that <br/>
<a id="pl.102.7"></a><var>102.7</var>fund's amortization date as specified in this clause applies to all local police or salaried <br/>
<a id="pl.102.8"></a><var>102.8</var>firefighters' relief associations and that date supersedes any amortization date specified in <br/>
<a id="pl.102.9"></a><var>102.9</var>any applicable special law paragraph (d).<br/>
<a id="pl.102.10"></a><var>102.10</var>(d) The Minneapolis Firefighters Relief Association special fund amortization date <br/>
<a id="pl.102.11"></a><var>102.11</var>is determined under section 423C.15, subdivisions 3 and 4. The Virginia Fire Department <br/>
<a id="pl.102.12"></a><var>102.12</var>Relief Association special fund amortization date is December 31, 2010. The Minneapolis <br/>
<a id="pl.102.13"></a><var>102.13</var>Police Relief Association special fund and the Fairmont Police Relief Association <br/>
<a id="pl.102.14"></a><var>102.14</var>special fund amortization date is December 31, 2020. The Bloomington Fire Department <br/>
<a id="pl.102.15"></a><var>102.15</var>Relief Association special fund amortization date is determined under section 356.216, <br/>
<a id="pl.102.16"></a><var>102.16</var>paragraph (a), clause (2). The amortization date specified in this paragraph supersedes any <br/>
<a id="pl.102.17"></a><var>102.17</var>amortization date specified in any applicable special law.<br/>
<a id="pl.102.18"></a><var>102.18</var>(d) (e) The minimum obligation of the municipality is an amount equal to the <br/>
<a id="pl.102.19"></a><var>102.19</var>financial requirements of the relief association reduced by the estimated amount of <br/>
<a id="pl.102.20"></a><var>102.20</var>member contributions from covered salary anticipated for the following calendar year and <br/>
<a id="pl.102.21"></a><var>102.21</var>the estimated amounts anticipated for the following calendar year from the applicable <br/>
<a id="pl.102.22"></a><var>102.22</var>state aid program established under sections 
         <statute_ref>69.011</statute_ref> to 
         <statute_ref>69.051</statute_ref> receivable by the relief <br/>
<a id="pl.102.23"></a><var>102.23</var>association after any allocation made under section 
         <statute_ref>69.031, subdivision 5</statute_ref>, paragraph (b), <br/>
<a id="pl.102.24"></a><var>102.24</var>clause (2), or 
         <statute_ref>423A.01, subdivision 2</statute_ref>, paragraph (a), clause (6), from the local police <br/>
<a id="pl.102.25"></a><var>102.25</var>and salaried firefighters' relief association amortization aid program established under <br/>
<a id="pl.102.26"></a><var>102.26</var>section 
         <statute_ref>423A.02, subdivision 1</statute_ref>, from the supplementary amortization state-aid program <br/>
<a id="pl.102.27"></a><var>102.27</var>established under section 
         <statute_ref>423A.02, subdivision 1a</statute_ref>, and from the additional amortization <br/>
<a id="pl.102.28"></a><var>102.28</var>state aid under section 
         <statute_ref>423A.02, subdivision 1b</statute_ref>.<br/>
<a id="pl.102.29"></a><var>102.29</var><b>EFFECTIVE DATE; LOCAL APPROVAL.</b>This section is effective the day after <br/>
<a id="pl.102.30"></a><var>102.30</var>the Fairmont City Council and the chief clerical officer of the city of Fairmont timely <br/>
<a id="pl.102.31"></a><var>102.31</var>complete their compliance with Minnesota Statutes, section 645.021, subdivisions 2 and 3.<br/>
<br/>
<a id="bill.8.2.0"></a><a id="pl.102.32"></a><var>102.32</var>    Sec. 2. Minnesota Statutes 2008, section 423A.02, subdivision 1, is amended to read:<br/>
<a id="pl.102.33"></a><var>102.33</var>    Subdivision 1. <b>Amortization state aid.</b> (a) A municipality in which is located <br/>
<a id="pl.102.34"></a><var>102.34</var>a local police or salaried firefighters' relief association to which the provisions of <br/>
<a id="pl.102.35"></a><var>102.35</var>section 
         <statute_ref>69.77</statute_ref>, apply, that had an unfunded actuarial accrued liability in the most recent <br/>
<a id="pl.103.1"></a><var>103.1</var>relief association actuarial valuation, is entitled, upon application as required by the <br/>
<a id="pl.103.2"></a><var>103.2</var>commissioner of revenue, to receive local police and salaried firefighters' relief association <br/>
<a id="pl.103.3"></a><var>103.3</var>amortization state aid if the municipality and the appropriate relief association both comply <br/>
<a id="pl.103.4"></a><var>103.4</var>with the applicable provisions of sections 
         <statute_ref>69.031, subdivision 5</statute_ref>, 
         <statute_ref>69.051, subdivisions 1 <br/>
<a id="pl.103.5"></a><var>103.5</var>and 3
         </statute_ref>, and 
         <statute_ref>69.77</statute_ref>. If a municipality loses entitlement for amortization state aid in any year <br/>
<a id="pl.103.6"></a><var>103.6</var>because its local relief association no longer has an unfunded actuarial accrued liability, <br/>
<a id="pl.103.7"></a><var>103.7</var>the municipality is not entitled to amortization state aid in any subsequent year.<br/>
<a id="pl.103.8"></a><var>103.8</var>(b) The total amount of amortization state aid to all entitled municipalities must <br/>
<a id="pl.103.9"></a><var>103.9</var>not exceed $5,055,000.<br/>
<a id="pl.103.10"></a><var>103.10</var>(c) Subject to the adjustment for the city of Minneapolis provided in this paragraph, <br/>
<a id="pl.103.11"></a><var>103.11</var>the amount of amortization state aid to which a municipality is entitled annually is an <br/>
<a id="pl.103.12"></a><var>103.12</var>amount equal to the level annual dollar amount required to amortize, by December 31, <br/>
<a id="pl.103.13"></a><var>103.13</var>2010, the unfunded actuarial accrued liability of the special fund of the appropriate <br/>
<a id="pl.103.14"></a><var>103.14</var>relief association as reported in the December 31, 1978, actuarial valuation of the <br/>
<a id="pl.103.15"></a><var>103.15</var>relief association prepared under sections 
         <statute_ref>356.215</statute_ref> and 
         <statute_ref>356.216</statute_ref>, reduced by the dollar <br/>
<a id="pl.103.16"></a><var>103.16</var>amount required to pay the interest on the unfunded actuarial accrued liability of the <br/>
<a id="pl.103.17"></a><var>103.17</var>special fund of the relief association for calendar year 1981 set at the rate specified in <br/>
<a id="pl.103.18"></a><var>103.18</var>Minnesota Statutes 1978, section 
         <statute_ref>356.215, subdivision 8</statute_ref>. For the city of Minneapolis, the <br/>
<a id="pl.103.19"></a><var>103.19</var>amortization state aid amount thus determined must be reduced by $747,232 on account of <br/>
<a id="pl.103.20"></a><var>103.20</var>the Minneapolis Police Relief Association and by $772,768 on account of the Minneapolis <br/>
<a id="pl.103.21"></a><var>103.21</var>Fire Department Relief Association. If the amortization state aid amounts determined <br/>
<a id="pl.103.22"></a><var>103.22</var>under this paragraph exceed the amount appropriated for this purpose, the amortization <br/>
<a id="pl.103.23"></a><var>103.23</var>state aid for actual allocation must be reduced pro rata. <br/>
<a id="pl.103.24"></a><var>103.24</var>(d) Payment of amortization state aid to municipalities must be made directly to <br/>
<a id="pl.103.25"></a><var>103.25</var>the municipalities involved in three equal installments on July 15, September 15, and <br/>
<a id="pl.103.26"></a><var>103.26</var>November 15 annually. Upon receipt of amortization state aid, the municipal treasurer <br/>
<a id="pl.103.27"></a><var>103.27</var>shall transmit the aid amount to the treasurer of the local relief association for immediate <br/>
<a id="pl.103.28"></a><var>103.28</var>deposit in the special fund of the relief association.<br/>
<a id="pl.103.29"></a><var>103.29</var>(e) The commissioner of revenue shall prescribe and periodically revise the form for <br/>
<a id="pl.103.30"></a><var>103.30</var>and content of the application for the amortization state aid.<br/>
<br/>
<a id="bill.8.3.0"></a><a id="pl.103.31"></a><var>103.31</var>    Sec. 3. Minnesota Statutes 2008, section 423A.02, subdivision 3, is amended to read:<br/>
<a id="pl.103.32"></a><var>103.32</var>    Subd. 3. <b>Reallocation of amortization or supplementary amortization state </b><br/>
<a id="pl.103.33"></a><var>103.33</var><b>aid.</b> (a) Seventy percent of the difference between $5,720,000 and the current year <br/>
<a id="pl.103.34"></a><var>103.34</var>amortization aid or supplemental amortization aid distributed under subdivisions 1 and 1a <br/>
<a id="pl.103.35"></a><var>103.35</var>that is not distributed for any reason to a municipality for use by a local police or salaried <br/>
<a id="pl.104.1"></a><var>104.1</var>fire relief association must be distributed by the commissioner of revenue according to this <br/>
<a id="pl.104.2"></a><var>104.2</var>paragraph. The commissioner shall distribute 70 50 percent of the amounts derived under <br/>
<a id="pl.104.3"></a><var>104.3</var>this paragraph to the Teachers Retirement Association, ten percent to the Duluth Teachers <br/>
<a id="pl.104.4"></a><var>104.4</var>Retirement Fund Association, and 30 40 percent to the St. Paul Teachers Retirement Fund <br/>
<a id="pl.104.5"></a><var>104.5</var>Association to fund the unfunded actuarial accrued liabilities of the respective funds. <br/>
<a id="pl.104.6"></a><var>104.6</var>These payments shall be made on or before June 30 each fiscal year. The amount required <br/>
<a id="pl.104.7"></a><var>104.7</var>under this paragraph is appropriated annually from the general fund to the commissioner <br/>
<a id="pl.104.8"></a><var>104.8</var>of revenue. If the St. Paul Teachers Retirement Fund Association becomes fully funded, <br/>
<a id="pl.104.9"></a><var>104.9</var>its eligibility for this aid ceases. Amounts remaining in the undistributed balance account <br/>
<a id="pl.104.10"></a><var>104.10</var>at the end of the biennium if aid eligibility ceases cancel to the general fund.<br/>
<a id="pl.104.11"></a><var>104.11</var>    (b) In order to receive amortization and supplementary amortization aid under <br/>
<a id="pl.104.12"></a><var>104.12</var>paragraph (a), Independent School District No. 625, St. Paul, must make contributions <br/>
<a id="pl.104.13"></a><var>104.13</var>to the St. Paul Teachers Retirement Fund Association in accordance with the following <br/>
<a id="pl.104.14"></a><var>104.14</var>schedule:<br/>
<table>
<col width="50px"/>
<col width="15"/>
<col width="26"/>
<col width="3"/>
<col width="9"/>
<col width="12"/>
<tr>
<td><a id="pl.104.15"></a><var>104.15</var><br/>
</td>
<td></td>
<td>Fiscal Year<br/>
</td>
<td></td>
<td align="center">Amount<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.104.16"></a><var>104.16</var><br/>
</td>
<td></td>
<td>1996<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">0<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.104.17"></a><var>104.17</var><br/>
</td>
<td></td>
<td>1997<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">0<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.104.18"></a><var>104.18</var><br/>
</td>
<td></td>
<td>1998<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">200,000<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.104.19"></a><var>104.19</var><br/>
</td>
<td></td>
<td>1999<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">400,000<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.104.20"></a><var>104.20</var><br/>
</td>
<td></td>
<td>2000<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">600,000<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.104.21"></a><var>104.21</var><br/>
</td>
<td></td>
<td>2001 and thereafter<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">800,000<br/>
</td>
<td></td>
</tr>
</table><a id="pl.104.22"></a><var>104.22</var>    (c) Special School District No. 1, Minneapolis, and the city of Minneapolis must <br/>
<a id="pl.104.23"></a><var>104.23</var>each make contributions to the Teachers Retirement Association in accordance with the <br/>
<a id="pl.104.24"></a><var>104.24</var>following schedule:<br/>
<table>
<col width="50px"/>
<col width="5"/>
<col width="20"/>
<col width="2.5"/>
<col width="9"/>
<col width="10"/>
<col width="2.5"/>
<col width="9"/>
<col width="7"/>
<tr>
<td><a id="pl.104.25"></a><var>104.25</var><br/>
<a id="pl.104.26"></a><var>104.26</var><br/>
</td>
<td></td>
<td valign="top">Fiscal Year<br/>
</td>
<td align="center" colspan="2" valign="top">City amount<br/>
</td>
<td></td>
<td align="center" colspan="2" valign="top">School district <br/>
                  		amount<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.104.27"></a><var>104.27</var><br/>
</td>
<td></td>
<td>1996<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">0<br/>
</td>
<td></td>
<td align="right">$<br/>
</td>
<td align="right">0<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.104.28"></a><var>104.28</var><br/>
</td>
<td></td>
<td>1997<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">0<br/>
</td>
<td></td>
<td align="right">$<br/>
</td>
<td align="right" valign="bottom">0<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.104.29"></a><var>104.29</var><br/>
</td>
<td></td>
<td>1998<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">250,000<br/>
</td>
<td></td>
<td align="right">$<br/>
</td>
<td align="right">250,000<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.104.30"></a><var>104.30</var><br/>
</td>
<td></td>
<td>1999<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">400,000<br/>
</td>
<td></td>
<td align="right">$<br/>
</td>
<td align="right">400,000<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.104.31"></a><var>104.31</var><br/>
</td>
<td></td>
<td>2000<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">550,000<br/>
</td>
<td></td>
<td align="right">$<br/>
</td>
<td align="right">550,000<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.104.32"></a><var>104.32</var><br/>
</td>
<td></td>
<td>2001<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">700,000<br/>
</td>
<td></td>
<td align="right">$<br/>
</td>
<td align="right">700,000<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.104.33"></a><var>104.33</var><br/>
</td>
<td></td>
<td>2002<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">850,000<br/>
</td>
<td></td>
<td align="right">$<br/>
</td>
<td align="right">850,000<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.104.34"></a><var>104.34</var><br/>
</td>
<td></td>
<td>2003 and thereafter<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">1,000,000<br/>
</td>
<td></td>
<td align="right">$<br/>
</td>
<td align="right">1,000,000<br/>
</td>
<td></td>
</tr>
</table><a id="pl.104.35"></a><var>104.35</var>    (d) Money contributed under paragraph (a) and either paragraph (b) or (c), as <br/>
<a id="pl.104.36"></a><var>104.36</var>applicable, must be credited to a separate account in the applicable teachers retirement <br/>
<a id="pl.104.37"></a><var>104.37</var>fund and may not be used in determining any benefit increases. The separate account <br/>
<a id="pl.104.38"></a><var>104.38</var>terminates for a fund when the aid payments to the fund under paragraph (a) cease.<br/>
<a id="pl.105.1"></a><var>105.1</var>    (e) Thirty percent of the difference between $5,720,000 and the current year <br/>
<a id="pl.105.2"></a><var>105.2</var>amortization aid or supplemental amortization aid under subdivisions 1 and 1a that is not <br/>
<a id="pl.105.3"></a><var>105.3</var>distributed for any reason to a municipality for use by a local police or salaried firefighter <br/>
<a id="pl.105.4"></a><var>105.4</var>relief association must be distributed under section 
         <statute_ref>69.021, subdivision 7</statute_ref>, paragraph (d), <br/>
<a id="pl.105.5"></a><var>105.5</var>as additional funding to support a minimum fire state aid amount for volunteer firefighter <br/>
<a id="pl.105.6"></a><var>105.6</var>relief associations. The amount required under this paragraph is appropriated annually <br/>
<a id="pl.105.7"></a><var>105.7</var>to the commissioner of revenue.<br/>
<br/>
<a id="bill.8.4.0"></a><a id="pl.105.8"></a><var>105.8</var>    Sec. 4. Minnesota Statutes 2008, section 423C.03, subdivision 1, is amended to read:<br/>
<a id="pl.105.9"></a><var>105.9</var>    Subdivision 1. <b>Board composition and elections.</b> The board shall consist of <br/>
<a id="pl.105.10"></a><var>105.10</var>two persons appointed by the city and ten the number of other members specified in <br/>
<a id="pl.105.11"></a><var>105.11</var>the association bylaws, but not to exceed ten, who must be selected by the members. <br/>
<a id="pl.105.12"></a><var>105.12</var>Elections for active and retired positions on the board shall be conducted pursuant to <br/>
<a id="pl.105.13"></a><var>105.13</var>the association's bylaws.<br/>
<a id="pl.105.14"></a><var>105.14</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.9.0.0"></a>

<a id="pl.105.17"></a><var>105.17</var><b>FIREFIGHTER RETIREMENT PLAN</b><br/>

<a id="bill.9.1.0"></a><a id="pl.105.18"></a><var>105.18</var>    Section 1. Minnesota Statutes 2008, section 11A.17, subdivision 1, is amended to read:<br/>
<a id="pl.105.19"></a><var>105.19</var>    Subdivision 1. <b>Purpose</b><b>; accounts; continuation</b><b>.</b> (a) The purpose of the <br/>
<a id="pl.105.20"></a><var>105.20</var>supplemental investment fund is to provide an investment vehicle for the assets of various <br/>
<a id="pl.105.21"></a><var>105.21</var>public retirement plans and funds.<br/>
<a id="pl.105.22"></a><var>105.22</var>(b) The fund consists of seven eight investment accounts: an income share account, <br/>
<a id="pl.105.23"></a><var>105.23</var>a growth share account, an international share account, a money market account, a fixed <br/>
<a id="pl.105.24"></a><var>105.24</var>interest account, a bond market account, and a common stock index account, and a <br/>
<a id="pl.105.25"></a><var>105.25</var>volunteer firefighter account.<br/>
<a id="pl.105.26"></a><var>105.26</var>(c) The supplemental investment fund is a continuation of the supplemental <br/>
<a id="pl.105.27"></a><var>105.27</var>retirement fund in existence on January 1, 1980.<br/>
<br/>
<a id="bill.9.2.0"></a><a id="pl.105.28"></a><var>105.28</var>    Sec. 2. Minnesota Statutes 2008, section 11A.17, subdivision 2, is amended to read:<br/>
<a id="pl.105.29"></a><var>105.29</var>    Subd. 2. <b>Assets.</b> (a) The assets of the supplemental investment fund shall consist <br/>
<a id="pl.105.30"></a><var>105.30</var>of the money certified and transmitted to the state board from the participating public <br/>
<a id="pl.105.31"></a><var>105.31</var>retirement plans and funds or from the board of the Minnesota State Colleges and <br/>
<a id="pl.105.32"></a><var>105.32</var>Universities under section 
<statute_ref>136F.45</statute_ref> and from the voluntary statewide lump-sum volunteer <br/>
<a id="pl.105.33"></a><var>105.33</var>firefighter retirement plan under section 353G.08.<br/>
<a id="pl.106.1"></a><var>106.1</var>(b) With the exception of the assets of the voluntary statewide lump-sum volunteer <br/>
<a id="pl.106.2"></a><var>106.2</var>firefighter retirement fund, the assets must be used to purchase investment shares in <br/>
<a id="pl.106.3"></a><var>106.3</var>the investment accounts as specified by the plan or fund. The assets of the voluntary <br/>
<a id="pl.106.4"></a><var>106.4</var>statewide lump-sum volunteer firefighter retirement fund must be invested in the volunteer <br/>
<a id="pl.106.5"></a><var>106.5</var>firefighter account.<br/>
<a id="pl.106.6"></a><var>106.6</var>(c) These accounts must be valued at least on a monthly basis but may be valued <br/>
<a id="pl.106.7"></a><var>106.7</var>more frequently as determined by the State Board of Investment.  <br/>
<br/>
<a id="bill.9.3.0"></a><a id="pl.106.8"></a><var>106.8</var>    Sec. 3. Minnesota Statutes 2008, section 69.011, subdivision 1, is amended to read:<br/>
<a id="pl.106.9"></a><var>106.9</var>    Subdivision 1. <b>Definitions.</b> Unless the language or context clearly indicates that a <br/>
<a id="pl.106.10"></a><var>106.10</var>different meaning is intended, the following words and terms shall, for the purposes of this <br/>
<a id="pl.106.11"></a><var>106.11</var>chapter and chapters 423, 423A, 424 and 424A, have the meanings ascribed to them:<br/>
<a id="pl.106.12"></a><var>106.12</var>    (a) "Commissioner" means the commissioner of revenue.<br/>
<a id="pl.106.13"></a><var>106.13</var>    (b) "Municipality" means:<br/>
<a id="pl.106.14"></a><var>106.14</var>    (1) a home rule charter or statutory city;<br/>
<a id="pl.106.15"></a><var>106.15</var>    (2) an organized town;<br/>
<a id="pl.106.16"></a><var>106.16</var>    (3) a park district subject to chapter 398;<br/>
<a id="pl.106.17"></a><var>106.17</var>    (4) the University of Minnesota;<br/>
<a id="pl.106.18"></a><var>106.18</var>    (5) for purposes of the fire state aid program only, an American Indian tribal <br/>
<a id="pl.106.19"></a><var>106.19</var>government entity located within a federally recognized American Indian reservation;<br/>
<a id="pl.106.20"></a><var>106.20</var>    (6) for purposes of the police state aid program only, an American Indian tribal <br/>
<a id="pl.106.21"></a><var>106.21</var>government with a tribal police department which exercises state arrest powers under <br/>
<a id="pl.106.22"></a><var>106.22</var>section 
         <statute_ref>626.90</statute_ref>, 
         <statute_ref>626.91</statute_ref>, 
         <statute_ref>626.92</statute_ref>, or 
         <statute_ref>626.93</statute_ref>; <br/>
<a id="pl.106.23"></a><var>106.23</var>    (7) for purposes of the police state aid program only, the Metropolitan Airports <br/>
<a id="pl.106.24"></a><var>106.24</var>Commission with respect to peace officers covered under chapter 422A; and<br/>
<a id="pl.106.25"></a><var>106.25</var>    (8) for purposes of the police state aid program only, the Department of Natural <br/>
<a id="pl.106.26"></a><var>106.26</var>Resources and the Department of Public Safety with respect to peace officers covered <br/>
<a id="pl.106.27"></a><var>106.27</var>under chapter 352B.<br/>
<a id="pl.106.28"></a><var>106.28</var>    (c) "Minnesota Firetown Premium Report" means a form prescribed by the <br/>
<a id="pl.106.29"></a><var>106.29</var>commissioner containing space for reporting by insurers of fire, lightning, sprinkler <br/>
<a id="pl.106.30"></a><var>106.30</var>leakage and extended coverage premiums received upon risks located or to be performed <br/>
<a id="pl.106.31"></a><var>106.31</var>in this state less return premiums and dividends.<br/>
<a id="pl.106.32"></a><var>106.32</var>    (d) "Firetown" means the area serviced by any municipality having a qualified fire <br/>
<a id="pl.106.33"></a><var>106.33</var>department or a qualified incorporated fire department having a subsidiary volunteer <br/>
<a id="pl.106.34"></a><var>106.34</var>firefighters' relief association.<br/>
<a id="pl.107.1"></a><var>107.1</var>    (e) "Market value" means latest available market value of all property in a taxing <br/>
<a id="pl.107.2"></a><var>107.2</var>jurisdiction, whether the property is subject to taxation, or exempt from ad valorem <br/>
<a id="pl.107.3"></a><var>107.3</var>taxation obtained from information which appears on abstracts filed with the commissioner <br/>
<a id="pl.107.4"></a><var>107.4</var>of revenue or equalized by the State Board of Equalization.<br/>
<a id="pl.107.5"></a><var>107.5</var>    (f) "Minnesota Aid to Police Premium Report" means a form prescribed by the <br/>
<a id="pl.107.6"></a><var>107.6</var>commissioner for reporting by each fire and casualty insurer of all premiums received <br/>
<a id="pl.107.7"></a><var>107.7</var>upon direct business received by it in this state, or by its agents for it, in cash or otherwise, <br/>
<a id="pl.107.8"></a><var>107.8</var>during the preceding calendar year, with reference to insurance written for insuring against <br/>
<a id="pl.107.9"></a><var>107.9</var>the perils contained in auto insurance coverages as reported in the Minnesota business <br/>
<a id="pl.107.10"></a><var>107.10</var>schedule of the annual financial statement which each insurer is required to file with <br/>
<a id="pl.107.11"></a><var>107.11</var>the commissioner in accordance with the governing laws or rules less return premiums <br/>
<a id="pl.107.12"></a><var>107.12</var>and dividends.<br/>
<a id="pl.107.13"></a><var>107.13</var>    (g) "Peace officer" means any person:<br/>
<a id="pl.107.14"></a><var>107.14</var>    (1) whose primary source of income derived from wages is from direct employment <br/>
<a id="pl.107.15"></a><var>107.15</var>by a municipality or county as a law enforcement officer on a full-time basis of not less <br/>
<a id="pl.107.16"></a><var>107.16</var>than 30 hours per week;<br/>
<a id="pl.107.17"></a><var>107.17</var>    (2) who has been employed for a minimum of six months prior to December 31 <br/>
<a id="pl.107.18"></a><var>107.18</var>preceding the date of the current year's certification under subdivision 2, clause (b);<br/>
<a id="pl.107.19"></a><var>107.19</var>    (3) who is sworn to enforce the general criminal laws of the state and local <br/>
<a id="pl.107.20"></a><var>107.20</var>ordinances;<br/>
<a id="pl.107.21"></a><var>107.21</var>    (4) who is licensed by the Peace Officers Standards and Training Board and is <br/>
<a id="pl.107.22"></a><var>107.22</var>authorized to arrest with a warrant; and<br/>
<a id="pl.107.23"></a><var>107.23</var>    (5) who is a member of a local police relief association to which section 
         <statute_ref>69.77 <br/>
</statute_ref><a id="pl.107.24"></a><var>107.24</var>applies, the State Patrol retirement plan, the public employees police and fire fund, or the <br/>
<a id="pl.107.25"></a><var>107.25</var>Minneapolis Employees Retirement Fund. <br/>
<a id="pl.107.26"></a><var>107.26</var>    (h) "Full-time equivalent number of peace officers providing contract service" means <br/>
<a id="pl.107.27"></a><var>107.27</var>the integral or fractional number of peace officers which would be necessary to provide <br/>
<a id="pl.107.28"></a><var>107.28</var>the contract service if all peace officers providing service were employed on a full-time <br/>
<a id="pl.107.29"></a><var>107.29</var>basis as defined by the employing unit and the municipality receiving the contract service.<br/>
<a id="pl.107.30"></a><var>107.30</var>    (i) "Retirement benefits other than a service pension" means any disbursement <br/>
<a id="pl.107.31"></a><var>107.31</var>authorized under section 
         <statute_ref>424A.05, subdivision 3</statute_ref>, clauses (2) and (3). <br/>
<a id="pl.107.32"></a><var>107.32</var>    (j) "Municipal clerk, municipal clerk-treasurer, or county auditor" means the person <br/>
<a id="pl.107.33"></a><var>107.33</var>who was elected or appointed to the specified position or, in the absence of the person, <br/>
<a id="pl.107.34"></a><var>107.34</var>another person who is designated by the applicable governing body. In a park district, <br/>
<a id="pl.107.35"></a><var>107.35</var>the clerk is the secretary of the board of park district commissioners. In the case of the <br/>
<a id="pl.107.36"></a><var>107.36</var>University of Minnesota, the clerk is that official designated by the Board of Regents. <br/>
<a id="pl.108.1"></a><var>108.1</var>For the Metropolitan Airports Commission, the clerk is the person designated by the <br/>
<a id="pl.108.2"></a><var>108.2</var>commission. For the Department of Natural Resources or the Department of Public Safety, <br/>
<a id="pl.108.3"></a><var>108.3</var>the clerk is the respective commissioner. For a tribal police department which exercises <br/>
<a id="pl.108.4"></a><var>108.4</var>state arrest powers under section 
         <statute_ref>626.90</statute_ref>, 
         <statute_ref>626.91</statute_ref>, 
         <statute_ref>626.92</statute_ref>, or 
         <statute_ref>626.93</statute_ref>, the clerk is the person <br/>
<a id="pl.108.5"></a><var>108.5</var>designated by the applicable American Indian tribal government. <br/>
<a id="pl.108.6"></a><var>108.6</var>(k) "Voluntary statewide lump-sum volunteer firefighter retirement plan" means the <br/>
<a id="pl.108.7"></a><var>108.7</var>retirement plan established by chapter 353G.<br/>
<br/>
<a id="bill.9.4.0"></a><a id="pl.108.8"></a><var>108.8</var>    Sec. 4. Minnesota Statutes 2008, section 69.011, subdivision 2, is amended to read:<br/>
<a id="pl.108.9"></a><var>108.9</var>    Subd. 2. <b>Qualification for fire or police state aid.</b> (a) Unless retirement coverage <br/>
<a id="pl.108.10"></a><var>108.10</var>is provided by the voluntary statewide lump-sum volunteer firefighter retirement plan, in <br/>
<a id="pl.108.11"></a><var>108.11</var>order to qualify to receive fire state aid, on or before March 15 annually, in conjunction <br/>
<a id="pl.108.12"></a><var>108.12</var>with the financial report required pursuant to section 
         <statute_ref>69.051</statute_ref>, the clerk of each municipality <br/>
<a id="pl.108.13"></a><var>108.13</var>having a duly organized fire department as provided in subdivision 4, or the secretary of <br/>
<a id="pl.108.14"></a><var>108.14</var>each independent nonprofit firefighting corporation having a subsidiary incorporated <br/>
<a id="pl.108.15"></a><var>108.15</var>firefighters' relief association whichever is applicable, and the fire chief, shall jointly <br/>
<a id="pl.108.16"></a><var>108.16</var>certify the existence of the municipal fire department or of the independent nonprofit <br/>
<a id="pl.108.17"></a><var>108.17</var>firefighting corporation, whichever is applicable, which meets the minimum qualification <br/>
<a id="pl.108.18"></a><var>108.18</var>requirements set forth in this subdivision, and the fire personnel and equipment of the <br/>
<a id="pl.108.19"></a><var>108.19</var>municipal fire department or the independent nonprofit firefighting corporation as of the <br/>
<a id="pl.108.20"></a><var>108.20</var>preceding December 31. <br/>
<a id="pl.108.21"></a><var>108.21</var>(b) Where retirement coverage is provided by the voluntary statewide lump-sum <br/>
<a id="pl.108.22"></a><var>108.22</var>volunteer firefighter retirement plan, the executive director of the Public Employees <br/>
<a id="pl.108.23"></a><var>108.23</var>Retirement Association shall certify the existence of that coverage for each municipality <br/>
<a id="pl.108.24"></a><var>108.24</var>and the municipal clerk or independent nonprofit firefighting corporation secretary, <br/>
<a id="pl.108.25"></a><var>108.25</var>whichever applies, and the applicable fire chief shall certify the fire personnel and fire <br/>
<a id="pl.108.26"></a><var>108.26</var>department equipment as of the preceding December 31. <br/>
<a id="pl.108.27"></a><var>108.27</var>(c) Certification shall must be made to the commissioner on a form prescribed <br/>
<a id="pl.108.28"></a><var>108.28</var>by the commissioner and shall include any other facts the commissioner may require. <br/>
<a id="pl.108.29"></a><var>108.29</var>The certification shall must be made to the commissioner in duplicate. Each copy of the <br/>
<a id="pl.108.30"></a><var>108.30</var>certificate shall must be duly executed and is deemed to be an original. The commissioner <br/>
<a id="pl.108.31"></a><var>108.31</var>shall forward one copy to the auditor of the county wherein the fire department is located <br/>
<a id="pl.108.32"></a><var>108.32</var>and shall retain one copy.  <br/>
<a id="pl.108.33"></a><var>108.33</var>(b) (d) On or before March 15 annually the clerk of each municipality having a duly <br/>
<a id="pl.108.34"></a><var>108.34</var>organized police department and having a duly incorporated relief association shall certify <br/>
<a id="pl.108.35"></a><var>108.35</var>that fact to the county auditor of the county where the police department is located and to <br/>
<a id="pl.109.1"></a><var>109.1</var>the commissioner on a form prescribed by the commissioner together with the other facts <br/>
<a id="pl.109.2"></a><var>109.2</var>the commissioner or auditor may require.<br/>
<a id="pl.109.3"></a><var>109.3</var>(e) Except as provided in subdivision 2b, on or before March 15 annually, the clerk <br/>
<a id="pl.109.4"></a><var>109.4</var>of each municipality and the auditor of each county employing one or more peace officers <br/>
<a id="pl.109.5"></a><var>109.5</var>as defined in subdivision 1, clause (g), shall certify the number of such peace officers to <br/>
<a id="pl.109.6"></a><var>109.6</var>the commissioner on forms prescribed by the commissioner. Credit for officers employed <br/>
<a id="pl.109.7"></a><var>109.7</var>less than a full year shall must be apportioned. Each full month of employment of a <br/>
<a id="pl.109.8"></a><var>109.8</var>qualifying officer during the calendar year shall entitle entitles the employing municipality <br/>
<a id="pl.109.9"></a><var>109.9</var>or county to credit for 1/12 of the payment for employment of a peace officer for the entire <br/>
<a id="pl.109.10"></a><var>109.10</var>year. For purposes of sections 
         <statute_ref>69.011</statute_ref> to 
         <statute_ref>69.051</statute_ref>, employment of a peace officer shall <br/>
<a id="pl.109.11"></a><var>109.11</var>commence commences when the peace officer is entered on the payroll of the respective <br/>
<a id="pl.109.12"></a><var>109.12</var>municipal police department or county sheriff's department. No peace officer shall may be <br/>
<a id="pl.109.13"></a><var>109.13</var>included in the certification of the number of peace officers by more than one municipality <br/>
<a id="pl.109.14"></a><var>109.14</var>or county for the same month.  <br/>
<br/>
<a id="bill.9.5.0"></a><a id="pl.109.15"></a><var>109.15</var>    Sec. 5. Minnesota Statutes 2008, section 69.011, subdivision 4, is amended to read:<br/>
<a id="pl.109.16"></a><var>109.16</var>    Subd. 4. <b>Qualification for state aid.</b> Any municipality in this state having for more <br/>
<a id="pl.109.17"></a><var>109.17</var>than one year an organized fire department and officially established by the governing <br/>
<a id="pl.109.18"></a><var>109.18</var>body of the municipality or an independent nonprofit fire fighting corporation created <br/>
<a id="pl.109.19"></a><var>109.19</var>under the nonprofit corporation act of this state and operating exclusively for fire fighting <br/>
<a id="pl.109.20"></a><var>109.20</var>purposes and providing retirement and relief benefits to its members or, having a separate <br/>
<a id="pl.109.21"></a><var>109.21</var>subsidiary incorporated firefighter's relief and pension association providing retirement and <br/>
<a id="pl.109.22"></a><var>109.22</var>relief benefits, or participating in the voluntary statewide lump-sum volunteer firefighter <br/>
<a id="pl.109.23"></a><var>109.23</var>retirement plan, may qualify to receive state aid if it meets the following minimum <br/>
<a id="pl.109.24"></a><var>109.24</var>requirements or equivalent as determined by the state fire marshal by July 1, 1972:<br/>
<a id="pl.109.25"></a><var>109.25</var>(a) ten paid or volunteer firefighters including a fire chief and assistant fire chief, and<br/>
<a id="pl.109.26"></a><var>109.26</var>(b) regular scheduled meetings and frequent drills including instructions in fire <br/>
<a id="pl.109.27"></a><var>109.27</var>fighting tactics and in the use, care, and operation of all fire apparatus and equipment, and<br/>
<a id="pl.109.28"></a><var>109.28</var>(c) a motorized fire truck equipped with a motorized pump, 250 gallon or larger <br/>
<a id="pl.109.29"></a><var>109.29</var>water tank, 300 feet of one inch or larger fire hose in two lines with combination spray <br/>
<a id="pl.109.30"></a><var>109.30</var>and straight stream nozzles, five-gallon hand pumps--tank extinguisher or equivalent, dry <br/>
<a id="pl.109.31"></a><var>109.31</var>chemical extinguisher or equivalent, ladders, extension ladders, pike poles, crow bars, <br/>
<a id="pl.109.32"></a><var>109.32</var>axes, lanterns, fire coats, helmets, boots, and<br/>
<a id="pl.109.33"></a><var>109.33</var>(d) apparatus suitably housed in a building of good construction with facilities for <br/>
<a id="pl.109.34"></a><var>109.34</var>care of hose and equipment, and<br/>
<a id="pl.110.1"></a><var>110.1</var>(e) a reliable and adequate method of receiving fire alarms by telephone or with <br/>
<a id="pl.110.2"></a><var>110.2</var>electric siren and suitable means of sounding an alarm, and<br/>
<a id="pl.110.3"></a><var>110.3</var>(f) if response is to be provided outside the corporate limits of the municipality <br/>
<a id="pl.110.4"></a><var>110.4</var>wherein the fire department is located, the municipality has another piece of motorized <br/>
<a id="pl.110.5"></a><var>110.5</var>apparatus to make the response, and<br/>
<a id="pl.110.6"></a><var>110.6</var>(g) other requirements the commissioner establishes by rule.<br/>
<br/>
<a id="bill.9.6.0"></a><a id="pl.110.7"></a><var>110.7</var>    Sec. 6. Minnesota Statutes 2008, section 69.021, subdivision 7, is amended to read:<br/>
<a id="pl.110.8"></a><var>110.8</var>    Subd. 7. <b>Apportionment of fire state aid to municipalities and relief associations.</b><br/>
<a id="pl.110.9"></a><var>110.9</var>(a) The commissioner shall apportion the fire state aid relative to the premiums reported <br/>
<a id="pl.110.10"></a><var>110.10</var>on the Minnesota Firetown Premium Reports filed under this chapter to each municipality <br/>
<a id="pl.110.11"></a><var>110.11</var>and/or firefighters relief association.<br/>
<a id="pl.110.12"></a><var>110.12</var>(b) The commissioner shall calculate an initial fire state aid allocation amount for <br/>
<a id="pl.110.13"></a><var>110.13</var>each municipality or fire department under paragraph (c) and a minimum fire state aid <br/>
<a id="pl.110.14"></a><var>110.14</var>allocation amount for each municipality or fire department under paragraph (d). The <br/>
<a id="pl.110.15"></a><var>110.15</var>municipality or fire department must receive the larger fire state aid amount.<br/>
<a id="pl.110.16"></a><var>110.16</var>(c) The initial fire state aid allocation amount is the amount available for <br/>
<a id="pl.110.17"></a><var>110.17</var>apportionment as fire state aid under subdivision 5, without inclusion of any additional <br/>
<a id="pl.110.18"></a><var>110.18</var>funding amount to support a minimum fire state aid amount under section 
         <statute_ref>423A.02, <br/>
<a id="pl.110.19"></a><var>110.19</var>subdivision 3
         </statute_ref>, allocated one-half in proportion to the population as shown in the last <br/>
<a id="pl.110.20"></a><var>110.20</var>official statewide federal census for each fire town and one-half in proportion to the market <br/>
<a id="pl.110.21"></a><var>110.21</var>value of each fire town, including (1) the market value of tax exempt property and (2) the <br/>
<a id="pl.110.22"></a><var>110.22</var>market value of natural resources lands receiving in lieu payments under sections 
         <statute_ref>477A.11</statute_ref> <br/>
<a id="pl.110.23"></a><var>110.23</var>to 
         <statute_ref>477A.14</statute_ref>, but excluding the market value of minerals. In the case of incorporated or <br/>
<a id="pl.110.24"></a><var>110.24</var>municipal fire departments furnishing fire protection to other cities, towns, or townships <br/>
<a id="pl.110.25"></a><var>110.25</var>as evidenced by valid fire service contracts filed with the commissioner, the distribution <br/>
<a id="pl.110.26"></a><var>110.26</var>must be adjusted proportionately to take into consideration the crossover fire protection <br/>
<a id="pl.110.27"></a><var>110.27</var>service. Necessary adjustments shall must be made to subsequent apportionments. In <br/>
<a id="pl.110.28"></a><var>110.28</var>the case of municipalities or independent fire departments qualifying for the aid, the <br/>
<a id="pl.110.29"></a><var>110.29</var>commissioner shall calculate the state aid for the municipality or relief association on the <br/>
<a id="pl.110.30"></a><var>110.30</var>basis of the population and the market value of the area furnished fire protection service <br/>
<a id="pl.110.31"></a><var>110.31</var>by the fire department as evidenced by duly executed and valid fire service agreements <br/>
<a id="pl.110.32"></a><var>110.32</var>filed with the commissioner. If one or more fire departments are furnishing contracted <br/>
<a id="pl.110.33"></a><var>110.33</var>fire service to a city, town, or township, only the population and market value of the <br/>
<a id="pl.110.34"></a><var>110.34</var>area served by each fire department may be considered in calculating the state aid and <br/>
<a id="pl.110.35"></a><var>110.35</var>the fire departments furnishing service shall enter into an agreement apportioning among <br/>
<a id="pl.111.1"></a><var>111.1</var>themselves the percent of the population and the market value of each service area. The <br/>
<a id="pl.111.2"></a><var>111.2</var>agreement must be in writing and must be filed with the commissioner. <br/>
<a id="pl.111.3"></a><var>111.3</var>(d)  The minimum fire state aid allocation amount is the amount in addition to the <br/>
<a id="pl.111.4"></a><var>111.4</var>initial fire state allocation amount that is derived from any additional funding amount <br/>
<a id="pl.111.5"></a><var>111.5</var>to support a minimum fire state aid amount under section 
         <statute_ref>423A.02, subdivision 3</statute_ref>, and <br/>
<a id="pl.111.6"></a><var>111.6</var>allocated to municipalities with volunteer firefighters relief associations or covered by the <br/>
<a id="pl.111.7"></a><var>111.7</var>voluntary statewide lump-sum volunteer firefighter retirement plan based on the number <br/>
<a id="pl.111.8"></a><var>111.8</var>of active volunteer firefighters who are members of the relief association as reported <br/>
<a id="pl.111.9"></a><var>111.9</var>in the annual financial reporting for the calendar year 1993 to the Office of the State <br/>
<a id="pl.111.10"></a><var>111.10</var>Auditor, but not to exceed 30 active volunteer firefighters, so that all municipalities or <br/>
<a id="pl.111.11"></a><var>111.11</var>fire departments with volunteer firefighters relief associations receive in total at least a <br/>
<a id="pl.111.12"></a><var>111.12</var>minimum fire state aid amount per 1993 active volunteer firefighter to a maximum of <br/>
<a id="pl.111.13"></a><var>111.13</var>30 firefighters. If a relief association is established after calendar year 1993 and before <br/>
<a id="pl.111.14"></a><var>111.14</var>calendar year 2000, the number of active volunteer firefighters who are members of the <br/>
<a id="pl.111.15"></a><var>111.15</var>relief association as reported in the annual financial reporting for calendar year 1998 <br/>
<a id="pl.111.16"></a><var>111.16</var>to the Office of the State Auditor, but not to exceed 30 active volunteer firefighters, <br/>
<a id="pl.111.17"></a><var>111.17</var>shall be used in this determination. If a relief association is established after calendar <br/>
<a id="pl.111.18"></a><var>111.18</var>year 1999, the number of active volunteer firefighters who are members of the relief <br/>
<a id="pl.111.19"></a><var>111.19</var>association as reported in the first annual financial reporting submitted to the Office of <br/>
<a id="pl.111.20"></a><var>111.20</var>the State Auditor, but not to exceed 20 active volunteer firefighters, must be used in this <br/>
<a id="pl.111.21"></a><var>111.21</var>determination. If a relief association is terminated as a result of providing retirement <br/>
<a id="pl.111.22"></a><var>111.22</var>coverage for volunteer firefighters by the voluntary statewide lump-sum volunteer <br/>
<a id="pl.111.23"></a><var>111.23</var>firefighter retirement plan under chapter 353G, the number of active volunteer firefighters <br/>
<a id="pl.111.24"></a><var>111.24</var>of the municipality covered by the statewide plan as certified by the executive director of <br/>
<a id="pl.111.25"></a><var>111.25</var>the Public Employees Retirement Association to the commissioner and the state auditor, <br/>
<a id="pl.111.26"></a><var>111.26</var>but not to exceed 30 active firefighters, must be used in this determination.<br/>
<a id="pl.111.27"></a><var>111.27</var>(e) Unless the firefighters of the applicable fire department are members of the <br/>
<a id="pl.111.28"></a><var>111.28</var>voluntary statewide lump-sum volunteer firefighter retirement plan, the fire state aid must <br/>
<a id="pl.111.29"></a><var>111.29</var>be paid to the treasurer of the municipality where the fire department is located and the <br/>
<a id="pl.111.30"></a><var>111.30</var>treasurer of the municipality shall, within 30 days of receipt of the fire state aid, transmit <br/>
<a id="pl.111.31"></a><var>111.31</var>the aid to the relief association if the relief association has filed a financial report with the <br/>
<a id="pl.111.32"></a><var>111.32</var>treasurer of the municipality and has met all other statutory provisions pertaining to the <br/>
<a id="pl.111.33"></a><var>111.33</var>aid apportionment. If the firefighters of the applicable fire department are members of <br/>
<a id="pl.111.34"></a><var>111.34</var>the voluntary statewide lump-sum volunteer firefighter retirement plan, the fire state aid <br/>
<a id="pl.111.35"></a><var>111.35</var>must be paid to the executive director of the Public Employees Retirement Association <br/>
<a id="pl.111.36"></a><var>111.36</var>and deposited in the voluntary statewide lump-sum volunteer firefighter retirement fund.<br/>
<a id="pl.112.1"></a><var>112.1</var>(f) The commissioner may make rules to permit the administration of the provisions <br/>
<a id="pl.112.2"></a><var>112.2</var>of this section.<br/>
<a id="pl.112.3"></a><var>112.3</var>(g) Any adjustments needed to correct prior misallocations must be made to <br/>
<a id="pl.112.4"></a><var>112.4</var>subsequent apportionments.<br/>
<br/>
<a id="bill.9.7.0"></a><a id="pl.112.5"></a><var>112.5</var>    Sec. 7. Minnesota Statutes 2008, section 69.021, subdivision 9, is amended to read:<br/>
<a id="pl.112.6"></a><var>112.6</var>    Subd. 9. <b>Appeal.</b> In the event that any a municipality, a county, a fire relief <br/>
<a id="pl.112.7"></a><var>112.7</var>association, or a police relief association, or the voluntary statewide lump-sum volunteer <br/>
<a id="pl.112.8"></a><var>112.8</var>firefighter retirement plan, feels itself to be aggrieved, it may request the commissioner to <br/>
<a id="pl.112.9"></a><var>112.9</var>review and adjust the apportionment of funds within the county in the case of police state <br/>
<a id="pl.112.10"></a><var>112.10</var>aid, or within the state in the case of fire state aid. The decision of the commissioner is <br/>
<a id="pl.112.11"></a><var>112.11</var>subject to appeal, review, and adjustment by the district court in the county in which the <br/>
<a id="pl.112.12"></a><var>112.12</var>applicable municipality, fire department, or police department is located.<br/>
<br/>
<a id="bill.9.8.0"></a><a id="pl.112.13"></a><var>112.13</var>    Sec. 8. Minnesota Statutes 2008, section 69.031, subdivision 1, is amended to read:<br/>
<a id="pl.112.14"></a><var>112.14</var>    Subdivision 1. <b>Commissioner of finance's warrant.</b> (a) The commissioner of <br/>
<a id="pl.112.15"></a><var>112.15</var>finance shall issue to the Public Employees Retirement Association on behalf of a <br/>
<a id="pl.112.16"></a><var>112.16</var>municipality or independent nonprofit firefighting corporation that is a member of the <br/>
<a id="pl.112.17"></a><var>112.17</var>voluntary statewide lump-sum volunteer firefighter retirement plan under chapter 353G or <br/>
<a id="pl.112.18"></a><var>112.18</var>to the county, municipality, or independent nonprofit firefighting corporation certified to <br/>
<a id="pl.112.19"></a><var>112.19</var>the commissioner of finance by the commissioner a warrant for an amount equal to the <br/>
<a id="pl.112.20"></a><var>112.20</var>amount of fire state aid or police state aid, whichever applies, certified for the applicable <br/>
<a id="pl.112.21"></a><var>112.21</var>state aid recipient by the commissioner under section 
         <statute_ref>69.021</statute_ref>.<br/>
<a id="pl.112.22"></a><var>112.22</var>(b) The amount of state aid due and not paid by October 1 accrues interest at the rate <br/>
<a id="pl.112.23"></a><var>112.23</var>of one percent for each month or part of a month the amount remains unpaid, beginning <br/>
<a id="pl.112.24"></a><var>112.24</var>the preceding July 1.  <br/>
<br/>
<a id="bill.9.9.0"></a><a id="pl.112.25"></a><var>112.25</var>    Sec. 9. Minnesota Statutes 2008, section 69.031, subdivision 5, is amended to read:<br/>
<a id="pl.112.26"></a><var>112.26</var>    Subd. 5. <b>Deposit of state aid.</b> (a) If the municipality or the independent nonprofit <br/>
<a id="pl.112.27"></a><var>112.27</var>firefighting corporation is covered by the voluntary statewide lump-sum volunteer <br/>
<a id="pl.112.28"></a><var>112.28</var>firefighter retirement plan under chapter 353G, the executive director shall credit the <br/>
<a id="pl.112.29"></a><var>112.29</var>fire state aid against future municipal contribution requirements under section 353G.08 <br/>
<a id="pl.112.30"></a><var>112.30</var>and shall notify the municipality or independent nonprofit firefighting corporation of <br/>
<a id="pl.112.31"></a><var>112.31</var>the fire state aid so credited at least annually. If the municipality or the independent <br/>
<a id="pl.112.32"></a><var>112.32</var>nonprofit firefighting corporation is not covered by the voluntary statewide lump-sum <br/>
<a id="pl.112.33"></a><var>112.33</var>volunteer firefighter retirement plan, the municipal treasurer shall, within 30 days after <br/>
<a id="pl.113.1"></a><var>113.1</var>receipt, transmit the fire state aid to the treasurer of the duly incorporated firefighters' <br/>
<a id="pl.113.2"></a><var>113.2</var>relief association if there is one organized and the association has filed a financial report <br/>
<a id="pl.113.3"></a><var>113.3</var>with the municipality. If the relief association has not filed a financial report with the <br/>
<a id="pl.113.4"></a><var>113.4</var>municipality, the municipal treasurer shall delay transmission of the fire state aid to <br/>
<a id="pl.113.5"></a><var>113.5</var>the relief association until the complete financial report is filed. If the municipality or <br/>
<a id="pl.113.6"></a><var>113.6</var>independent nonprofit firefighting corporation is not covered by the voluntary statewide <br/>
<a id="pl.113.7"></a><var>113.7</var>lump-sum volunteer firefighter retirement plan, if there is no relief association organized, <br/>
<a id="pl.113.8"></a><var>113.8</var>or if the association has dissolved, or has been removed as trustees of state aid, then the <br/>
<a id="pl.113.9"></a><var>113.9</var>treasurer of the municipality shall deposit the money in the municipal treasury as provided <br/>
<a id="pl.113.10"></a><var>113.10</var>for in section 
         <statute_ref>424A.08</statute_ref> and the money may be disbursed only for the purposes and in the <br/>
<a id="pl.113.11"></a><var>113.11</var>manner set forth in that section.  <br/>
<a id="pl.113.12"></a><var>113.12</var>(b) The municipal treasurer, upon receipt of the police state aid, shall disburse the <br/>
<a id="pl.113.13"></a><var>113.13</var>police state aid in the following manner:<br/>
<a id="pl.113.14"></a><var>113.14</var>(1) For a municipality in which a local police relief association exists and all peace <br/>
<a id="pl.113.15"></a><var>113.15</var>officers are members of the association, the total state aid must be transmitted to the <br/>
<a id="pl.113.16"></a><var>113.16</var>treasurer of the relief association within 30 days of the date of receipt, and the treasurer <br/>
<a id="pl.113.17"></a><var>113.17</var>of the relief association shall immediately deposit the total state aid in the special fund <br/>
<a id="pl.113.18"></a><var>113.18</var>of the relief association;<br/>
<a id="pl.113.19"></a><var>113.19</var>(2) For a municipality in which police retirement coverage is provided by the public <br/>
<a id="pl.113.20"></a><var>113.20</var>employees police and fire fund and all peace officers are members of the fund, including <br/>
<a id="pl.113.21"></a><var>113.21</var>municipalities covered by section 
         <statute_ref>353.665</statute_ref>, the total state aid must be applied toward the <br/>
<a id="pl.113.22"></a><var>113.22</var>municipality's employer contribution to the public employees police and fire fund under <br/>
<a id="pl.113.23"></a><var>113.23</var>sections 
         <statute_ref>353.65, subdivision 3</statute_ref>, and 
         <statute_ref>353.665, subdivision 8</statute_ref>, paragraph (b), if applicable; or  <br/>
<a id="pl.113.24"></a><var>113.24</var>(3) For a municipality other than a city of the first class with a population of more <br/>
<a id="pl.113.25"></a><var>113.25</var>than 300,000 in which both a police relief association exists and police retirement <br/>
<a id="pl.113.26"></a><var>113.26</var>coverage is provided in part by the public employees police and fire fund, the municipality <br/>
<a id="pl.113.27"></a><var>113.27</var>may elect at its option to transmit the total state aid to the treasurer of the relief association <br/>
<a id="pl.113.28"></a><var>113.28</var>as provided in clause (1), to use the total state aid to apply toward the municipality's <br/>
<a id="pl.113.29"></a><var>113.29</var>employer contribution to the public employees police and fire fund subject to all the <br/>
<a id="pl.113.30"></a><var>113.30</var>provisions set forth in clause (2), or to allot the total state aid proportionately to be <br/>
<a id="pl.113.31"></a><var>113.31</var>transmitted to the police relief association as provided in this subdivision and to apply <br/>
<a id="pl.113.32"></a><var>113.32</var>toward the municipality's employer contribution to the public employees police and fire <br/>
<a id="pl.113.33"></a><var>113.33</var>fund subject to the provisions of clause (2) on the basis of the respective number of active <br/>
<a id="pl.113.34"></a><var>113.34</var>full-time peace officers, as defined in section 
         <statute_ref>69.011, subdivision 1</statute_ref>, clause (g).  <br/>
<a id="pl.113.35"></a><var>113.35</var>For a city of the first class with a population of more than 300,000, in addition, the <br/>
<a id="pl.113.36"></a><var>113.36</var>city may elect to allot the appropriate portion of the total police state aid to apply toward <br/>
<a id="pl.114.1"></a><var>114.1</var>the employer contribution of the city to the public employees police and fire fund based <br/>
<a id="pl.114.2"></a><var>114.2</var>on the covered salary of police officers covered by the fund each payroll period and to <br/>
<a id="pl.114.3"></a><var>114.3</var>transmit the balance to the police relief association; or<br/>
<a id="pl.114.4"></a><var>114.4</var>(4) For a municipality in which police retirement coverage is provided in part by <br/>
<a id="pl.114.5"></a><var>114.5</var>the public employees police and fire fund and in part by a local police consolidation <br/>
<a id="pl.114.6"></a><var>114.6</var>account governed by chapter 353A and established before March 2, 1999, for which the <br/>
<a id="pl.114.7"></a><var>114.7</var>municipality declined merger under section 
         <statute_ref>353.665, subdivision 1</statute_ref>, or established after <br/>
<a id="pl.114.8"></a><var>114.8</var>March 1, 1999, the total police state aid must be applied towards the municipality's total <br/>
<a id="pl.114.9"></a><var>114.9</var>employer contribution to the public employees police and fire fund and to the local police <br/>
<a id="pl.114.10"></a><var>114.10</var>consolidation account under sections 
         <statute_ref>353.65, subdivision 3</statute_ref>, and 
         <statute_ref>353A.09, subdivision 5</statute_ref>.  <br/>
<a id="pl.114.11"></a><var>114.11</var>(c) The county treasurer, upon receipt of the police state aid for the county, shall <br/>
<a id="pl.114.12"></a><var>114.12</var>apply the total state aid toward the county's employer contribution to the public employees <br/>
<a id="pl.114.13"></a><var>114.13</var>police and fire fund under section 
         <statute_ref>353.65, subdivision 3</statute_ref>.  <br/>
<a id="pl.114.14"></a><var>114.14</var>(d) The designated Metropolitan Airports Commission official, upon receipt of the <br/>
<a id="pl.114.15"></a><var>114.15</var>police state aid for the Metropolitan Airports Commission, shall apply the total police <br/>
<a id="pl.114.16"></a><var>114.16</var>state aid first toward the commission's employer contribution for police officers to the <br/>
<a id="pl.114.17"></a><var>114.17</var>Minneapolis Employees Retirement Fund under section 
         <statute_ref>422A.101, subdivision 2a</statute_ref>, and, if <br/>
<a id="pl.114.18"></a><var>114.18</var>there is any amount of police state aid remaining, shall apply that remainder toward the <br/>
<a id="pl.114.19"></a><var>114.19</var>commission's employer contribution for police officers to the public employees police and <br/>
<a id="pl.114.20"></a><var>114.20</var>fire plan under section 
         <statute_ref>353.65, subdivision 3</statute_ref>.  <br/>
<a id="pl.114.21"></a><var>114.21</var>(e) The police state aid apportioned to the Departments of Public Safety and Natural <br/>
<a id="pl.114.22"></a><var>114.22</var>Resources under section 
         <statute_ref>69.021, subdivision 7a</statute_ref>, is appropriated to the commissioner of <br/>
<a id="pl.114.23"></a><var>114.23</var>finance for transfer to the funds and accounts from which the salaries of peace officers <br/>
<a id="pl.114.24"></a><var>114.24</var>certified under section 
         <statute_ref>69.011, subdivision 2a</statute_ref>, are paid. The commissioner of revenue <br/>
<a id="pl.114.25"></a><var>114.25</var>shall certify to the commissioners of public safety, natural resources, and finance the <br/>
<a id="pl.114.26"></a><var>114.26</var>amounts to be transferred from the appropriation for police state aid. The commissioners <br/>
<a id="pl.114.27"></a><var>114.27</var>of public safety and natural resources shall certify to the commissioner of finance the <br/>
<a id="pl.114.28"></a><var>114.28</var>amounts to be credited to each of the funds and accounts from which the peace officers <br/>
<a id="pl.114.29"></a><var>114.29</var>employed by their respective departments are paid. Each commissioner must shall allocate <br/>
<a id="pl.114.30"></a><var>114.30</var>the police state aid first for employer contributions for employees funded from the general <br/>
<a id="pl.114.31"></a><var>114.31</var>fund and then for employer contributions for employees funded from other funds. For <br/>
<a id="pl.114.32"></a><var>114.32</var>peace officers whose salaries are paid from the general fund, the amounts transferred from <br/>
<a id="pl.114.33"></a><var>114.33</var>the appropriation for police state aid must be canceled to the general fund.  <br/>
<br/>
<a id="bill.9.10.0"></a><a id="pl.114.34"></a><var>114.34</var>    Sec. 10. <b>[353G.01] DEFINITIONS.</b><br/>
<a id="pl.115.1"></a><var>115.1</var>    Subdivision 1. <b>Scope.</b> For the purposes of this chapter, the words or terms defined <br/>
<a id="pl.115.2"></a><var>115.2</var>in this section have the meanings given to them unless the context of the word or term <br/>
<a id="pl.115.3"></a><var>115.3</var>clearly indicates otherwise.<br/>
<a id="pl.115.4"></a><var>115.4</var>    Subd. 2. <b>Advisory board.</b> "Advisory board" means the board established by section <br/>
<a id="pl.115.5"></a><var>115.5</var>353G.03.<br/>
<a id="pl.115.6"></a><var>115.6</var>    Subd. 3. <b>Board.</b> "Board" means the board of trustees of the Public Employees <br/>
<a id="pl.115.7"></a><var>115.7</var>Retirement Association operating under section 353.03.<br/>
<a id="pl.115.8"></a><var>115.8</var>    Subd. 4. <b>Commissioner of finance.</b> "Commissioner of finance" means the state <br/>
<a id="pl.115.9"></a><var>115.9</var>official appointed and qualified under section 16A.01.<br/>
<a id="pl.115.10"></a><var>115.10</var>    Subd. 5. <b>Executive director; director.</b> "Executive director" or "director" means <br/>
<a id="pl.115.11"></a><var>115.11</var>the person appointed under section 353.03, subdivision 3a.<br/>
<a id="pl.115.12"></a><var>115.12</var>    Subd. 6. <b>Fund.</b> "Fund" means the voluntary statewide lump-sum volunteer <br/>
<a id="pl.115.13"></a><var>115.13</var>firefighter retirement fund established under section 353G.02, subdivision 3.<br/>
<a id="pl.115.14"></a><var>115.14</var>    Subd. 7. <b>Good time service credit.</b> "Good time service credit" means the length of <br/>
<a id="pl.115.15"></a><var>115.15</var>service credit for an active firefighter that is reported by the applicable fire chief based <br/>
<a id="pl.115.16"></a><var>115.16</var>on the minimum firefighter activity standards of the fire department. The credit may be <br/>
<a id="pl.115.17"></a><var>115.17</var>recognized on an annual or monthly basis.<br/>
<a id="pl.115.18"></a><var>115.18</var>    Subd. 8. <b>Member.</b> "Member" means a volunteer firefighter who provides active <br/>
<a id="pl.115.19"></a><var>115.19</var>service to a municipal fire department or an independent nonprofit firefighting corporation <br/>
<a id="pl.115.20"></a><var>115.20</var>where the applicable municipality or corporation has elected coverage by the retirement <br/>
<a id="pl.115.21"></a><var>115.21</var>plan under section 353G.05, and which service is covered by the retirement plan.<br/>
<a id="pl.115.22"></a><var>115.22</var>    Subd. 9. <b>Municipality.</b> "Municipality" means a governmental entity specified in <br/>
<a id="pl.115.23"></a><var>115.23</var>section 69.011, subdivision 1, paragraph (b), clauses (1), (2), and (5).<br/>
<a id="pl.115.24"></a><var>115.24</var>    Subd. 10. <b>Plan.</b> "Plan" means the retirement plan established by this chapter.<br/>
<a id="pl.115.25"></a><var>115.25</var>    Subd. 11. <b>Retirement fund.</b> "Retirement fund" means the voluntary statewide <br/>
<a id="pl.115.26"></a><var>115.26</var>lump-sum volunteer firefighter retirement fund established under section 353G.02, <br/>
<a id="pl.115.27"></a><var>115.27</var>subdivision 3.<br/>
<a id="pl.115.28"></a><var>115.28</var>    Subd. 12. <b>Retirement plan.</b> "Retirement plan" means the retirement plan <br/>
<a id="pl.115.29"></a><var>115.29</var>established by this chapter.<br/>
<a id="pl.115.30"></a><var>115.30</var>    Subd. 13. <b>Standards for actuarial work.</b> "Standards for actuarial work" means <br/>
<a id="pl.115.31"></a><var>115.31</var>the standards adopted by the Legislative Commission on Pensions and Retirement under <br/>
<a id="pl.115.32"></a><var>115.32</var>section 3.85, subdivision 10.<br/>
<a id="pl.115.33"></a><var>115.33</var>    Subd. 14. <b>State Board of Investment.</b> "State Board of Investment" means the <br/>
<a id="pl.115.34"></a><var>115.34</var>board created by article XI, section 8, of the Minnesota Constitution and governed by <br/>
<a id="pl.115.35"></a><var>115.35</var>chapter 11A.<br/>
<a id="pl.116.1"></a><var>116.1</var>    Subd. 15. <b>Volunteer firefighter.</b> "Volunteer firefighter" means a person who is <br/>
<a id="pl.116.2"></a><var>116.2</var>an active member of a municipal fire department or independent nonprofit firefighting <br/>
<a id="pl.116.3"></a><var>116.3</var>corporation and who, in that capacity, engages in fire suppression activities, provides <br/>
<a id="pl.116.4"></a><var>116.4</var>emergency response services, or delivers fire education or prevention services on an <br/>
<a id="pl.116.5"></a><var>116.5</var>on-call basis.<br/>
<br/>
<a id="bill.9.11.0"></a><a id="pl.116.6"></a><var>116.6</var>    Sec. 11. <b>[353G.02] PLAN AND FUND CREATION.</b><br/>
<a id="pl.116.7"></a><var>116.7</var>    Subdivision 1. <b>Retirement plan.</b> The voluntary statewide lump-sum volunteer <br/>
<a id="pl.116.8"></a><var>116.8</var>firefighter retirement plan is created.<br/>
<a id="pl.116.9"></a><var>116.9</var>    Subd. 2. <b>Administration.</b> The policy-making, management, and administrative <br/>
<a id="pl.116.10"></a><var>116.10</var>functions related to the voluntary statewide lump-sum volunteer firefighter retirement <br/>
<a id="pl.116.11"></a><var>116.11</var>plan and fund are vested in the board of trustees and the executive director of the Public <br/>
<a id="pl.116.12"></a><var>116.12</var>Employees Retirement Association. Their duties, authority, and responsibilities are as <br/>
<a id="pl.116.13"></a><var>116.13</var>provided in section 353.03. Fiduciary activities of the plan and fund must be undertaken <br/>
<a id="pl.116.14"></a><var>116.14</var>in a manner consistent with chapter 356A.<br/>
<a id="pl.116.15"></a><var>116.15</var>    Subd. 3. <b>Retirement fund.</b> (a) The voluntary statewide lump-sum volunteer <br/>
<a id="pl.116.16"></a><var>116.16</var>firefighter retirement fund is created. The fund contains the assets attributable to the <br/>
<a id="pl.116.17"></a><var>116.17</var>voluntary statewide lump-sum volunteer firefighter retirement plan.<br/>
<a id="pl.116.18"></a><var>116.18</var>(b) The State Board of Investment shall invest those portions of the retirement <br/>
<a id="pl.116.19"></a><var>116.19</var>fund not required for immediate purposes in the voluntary statewide lump-sum volunteer <br/>
<a id="pl.116.20"></a><var>116.20</var>firefighter retirement plan in the statewide lump-sum volunteer firefighter account of the <br/>
<a id="pl.116.21"></a><var>116.21</var>Minnesota supplemental investment fund under section 11A.17.<br/>
<a id="pl.116.22"></a><var>116.22</var>(c) The commissioner of finance is the ex officio treasurer of the voluntary statewide <br/>
<a id="pl.116.23"></a><var>116.23</var>lump-sum volunteer firefighter retirement fund. The commissioner of finance's general <br/>
<a id="pl.116.24"></a><var>116.24</var>bond to the state covers all liability for actions taken as the treasurer of the retirement fund.<br/>
<a id="pl.116.25"></a><var>116.25</var>(d) The revenues of the retirement plan beyond investment returns are governed by <br/>
<a id="pl.116.26"></a><var>116.26</var>section 353G.08 and must be deposited in the retirement fund. The disbursements of the <br/>
<a id="pl.116.27"></a><var>116.27</var>retirement plan are governed by section 353G.08. The commissioner of finance shall <br/>
<a id="pl.116.28"></a><var>116.28</var>transmit a detailed statement showing all credits to and disbursements from the retirement <br/>
<a id="pl.116.29"></a><var>116.29</var>fund to the executive director monthly.<br/>
<a id="pl.116.30"></a><var>116.30</var>    Subd. 4. <b>Audit; actuarial valuation.</b> (a) The legislative auditor shall periodically <br/>
<a id="pl.116.31"></a><var>116.31</var>audit the voluntary statewide lump-sum volunteer firefighter retirement fund.<br/>
<a id="pl.116.32"></a><var>116.32</var>(b) An actuarial valuation of the voluntary statewide lump-sum volunteer firefighter <br/>
<a id="pl.116.33"></a><var>116.33</var>retirement plan may be performed periodically as determined to be appropriate or useful <br/>
<a id="pl.116.34"></a><var>116.34</var>by the board. An actuarial valuation must be performed by the approved actuary retained <br/>
<a id="pl.116.35"></a><var>116.35</var>under section 356.214 and must conform with section 356.215 and the standards for <br/>
<a id="pl.117.1"></a><var>117.1</var>actuarial work. An actuarial valuation must contain sufficient detail for each participating <br/>
<a id="pl.117.2"></a><var>117.2</var>employing entity to ascertain the actuarial condition of its account in the fund and the <br/>
<a id="pl.117.3"></a><var>117.3</var>contribution requirement towards its account.<br/>
<a id="pl.117.4"></a><var>117.4</var>    Subd. 5. <b>Legal advisor; attorney general.</b> (a) The legal advisor of the board <br/>
<a id="pl.117.5"></a><var>117.5</var>and the executive director with respect to the voluntary statewide lump-sum volunteer <br/>
<a id="pl.117.6"></a><var>117.6</var>firefighter retirement plan is the attorney general.<br/>
<a id="pl.117.7"></a><var>117.7</var>(b) The board may sue, petition, be sued, or be petitioned under this chapter with <br/>
<a id="pl.117.8"></a><var>117.8</var>respect to the plan or the fund in the name of the board.<br/>
<a id="pl.117.9"></a><var>117.9</var>(c) The attorney general shall represent the board in all actions by the board or <br/>
<a id="pl.117.10"></a><var>117.10</var>against the board with respect to the plan or the fund.<br/>
<a id="pl.117.11"></a><var>117.11</var>(d) Venue of all actions related to the plan or fund is in the court for the first judicial <br/>
<a id="pl.117.12"></a><var>117.12</var>district unless the action is an appeal to the Court of Appeals under section 356.96.<br/>
<br/>
<a id="bill.9.12.0"></a><a id="pl.117.13"></a><var>117.13</var>    Sec. 12. <b>[353G.03] VOLUNTARY STATEWIDE LUMP-SUM VOLUNTEER </b><br/>
<a id="pl.117.14"></a><var>117.14</var><b>FIREFIGHTER RETIREMENT PLAN ADVISORY BOARD.</b><br/>
<a id="pl.117.15"></a><var>117.15</var>    Subdivision 1. <b>Establishment.</b> A Voluntary Statewide Lump-Sum Volunteer <br/>
<a id="pl.117.16"></a><var>117.16</var>Firefighter Retirement Plan Advisory Board is created.<br/>
<a id="pl.117.17"></a><var>117.17</var>    Subd. 2. <b>Function; purpose.</b> The advisory board shall provide advice to the board <br/>
<a id="pl.117.18"></a><var>117.18</var>of trustees of the Public Employees Retirement Association about the retirement coverage <br/>
<a id="pl.117.19"></a><var>117.19</var>needs of volunteer firefighters who are members of the plan and about the legislative and <br/>
<a id="pl.117.20"></a><var>117.20</var>administrative changes that would assist the retirement plan in accommodating volunteer <br/>
<a id="pl.117.21"></a><var>117.21</var>firefighters who are not members of the plan.<br/>
<a id="pl.117.22"></a><var>117.22</var>    Subd. 3. <b>Composition.</b> (a) The advisory board consists of seven members.<br/>
<a id="pl.117.23"></a><var>117.23</var>(b) The advisory board members are:<br/>
<a id="pl.117.24"></a><var>117.24</var>(1) one representative of Minnesota townships, appointed by the Minnesota <br/>
<a id="pl.117.25"></a><var>117.25</var>Association of Townships;<br/>
<a id="pl.117.26"></a><var>117.26</var>(2) two representatives of Minnesota cities, appointed by the League of Minnesota <br/>
<a id="pl.117.27"></a><var>117.27</var>Cities;<br/>
<a id="pl.117.28"></a><var>117.28</var>(3) one representative of Minnesota fire chiefs, who is a fire chief, appointed by the <br/>
<a id="pl.117.29"></a><var>117.29</var>Minnesota State Fire Chiefs Association;<br/>
<a id="pl.117.30"></a><var>117.30</var>(4) two representatives of Minnesota volunteer firefighters, who are active volunteer <br/>
<a id="pl.117.31"></a><var>117.31</var>firefighters, appointed by the Minnesota State Fire Departments Association; and<br/>
<a id="pl.117.32"></a><var>117.32</var>(5) one representative of the Office of the State Auditor, designated by the state <br/>
<a id="pl.117.33"></a><var>117.33</var>auditor.<br/>
<a id="pl.117.34"></a><var>117.34</var>    Subd. 4. <b>Term.</b> (a) The initial terms on the advisory board for the Minnesota <br/>
<a id="pl.117.35"></a><var>117.35</var>townships representative and the Minnesota fire chiefs representative are one year. The <br/>
<a id="pl.118.1"></a><var>118.1</var>initial terms on the advisory board for one of the Minnesota cities representatives and one <br/>
<a id="pl.118.2"></a><var>118.2</var>of the Minnesota active volunteer firefighter representatives are two years. The initial <br/>
<a id="pl.118.3"></a><var>118.3</var>terms on the advisory board for the other Minnesota cities representative and the other <br/>
<a id="pl.118.4"></a><var>118.4</var>Minnesota active volunteer firefighter representative are three years. The term for the <br/>
<a id="pl.118.5"></a><var>118.5</var>Office of the State Auditor representative is determined by the state auditor.<br/>
<a id="pl.118.6"></a><var>118.6</var>(b) Subsequent terms on the advisory board other than the Office of the State <br/>
<a id="pl.118.7"></a><var>118.7</var>Auditor representative are three years.<br/>
<a id="pl.118.8"></a><var>118.8</var>    Subd. 5. <b>Compensation of advisory board.</b> The compensation of members of the <br/>
<a id="pl.118.9"></a><var>118.9</var>advisory board other than the Office of the State Auditor representative is governed by <br/>
<a id="pl.118.10"></a><var>118.10</var>section 15.0575, subdivision 3.<br/>
<br/>
<a id="bill.9.13.0"></a><a id="pl.118.11"></a><var>118.11</var>    Sec. 13. <b>[353G.04] INFORMATION FROM MUNICIPALITIES AND FIRE </b><br/>
<a id="pl.118.12"></a><var>118.12</var><b>DEPARTMENTS.</b><br/>
<a id="pl.118.13"></a><var>118.13</var>The chief executive officers of municipalities and fire departments with volunteer <br/>
<a id="pl.118.14"></a><var>118.14</var>firefighters covered by the voluntary lump-sum volunteer firefighter retirement plan shall <br/>
<a id="pl.118.15"></a><var>118.15</var>provide all relevant information and records requested by the board, the executive director, <br/>
<a id="pl.118.16"></a><var>118.16</var>and the State Board of Investment as required to perform their duties.<br/>
<br/>
<a id="bill.9.14.0"></a><a id="pl.118.17"></a><var>118.17</var>    Sec. 14. <b>[353G.05] PLAN COVERAGE ELECTION.</b><br/>
<a id="pl.118.18"></a><var>118.18</var>    Subdivision 1. <b>Coverage.</b> Any municipality or independent nonprofit firefighting <br/>
<a id="pl.118.19"></a><var>118.19</var>corporation may elect to have its volunteer firefighters covered by the retirement plan.<br/>
<a id="pl.118.20"></a><var>118.20</var>    Subd. 2. <b>Election of coverage.</b> (a) The process for electing coverage of volunteer <br/>
<a id="pl.118.21"></a><var>118.21</var>firefighters by the retirement plan is initiated by a request to the executive director for a <br/>
<a id="pl.118.22"></a><var>118.22</var>cost analysis of the prospective retirement coverage.<br/>
<a id="pl.118.23"></a><var>118.23</var>(b) If the volunteer firefighters are currently covered by a volunteer firefighters' relief <br/>
<a id="pl.118.24"></a><var>118.24</var>association governed by chapter 424A, the cost analysis of the prospective retirement <br/>
<a id="pl.118.25"></a><var>118.25</var>coverage must be requested jointly by the secretary of the volunteer firefighters' relief <br/>
<a id="pl.118.26"></a><var>118.26</var>association, following approval of the request by the board of the volunteer firefighters' <br/>
<a id="pl.118.27"></a><var>118.27</var>relief association, and the chief administrative officer of the entity associated with the <br/>
<a id="pl.118.28"></a><var>118.28</var>relief association, following approval of the request by the governing body of the entity <br/>
<a id="pl.118.29"></a><var>118.29</var>associated with the relief association. If the relief association is associated with more than <br/>
<a id="pl.118.30"></a><var>118.30</var>one entity, the chief administrative officer of each associated entity must execute the <br/>
<a id="pl.118.31"></a><var>118.31</var>request. If the volunteer firefighters are not currently covered by a volunteer firefighters' <br/>
<a id="pl.118.32"></a><var>118.32</var>relief association, the cost analysis of the prospective retirement coverage must be <br/>
<a id="pl.118.33"></a><var>118.33</var>requested by the chief administrative officer of the entity operating the fire department. <br/>
<a id="pl.119.1"></a><var>119.1</var>The request must be made in writing and must be made on a form prescribed by the <br/>
<a id="pl.119.2"></a><var>119.2</var>executive director.<br/>
<a id="pl.119.3"></a><var>119.3</var>(c) The cost analysis of the prospective retirement coverage by the statewide <br/>
<a id="pl.119.4"></a><var>119.4</var>retirement plan must be based on the service pension amount under section 353G.11 <br/>
<a id="pl.119.5"></a><var>119.5</var>closest to the service pension amount provided by the volunteer firefighters' relief <br/>
<a id="pl.119.6"></a><var>119.6</var>association, if there is one, or to the lowest service pension amount under section 353G.11 <br/>
<a id="pl.119.7"></a><var>119.7</var>if there is no volunteer firefighters' relief association, rounded up, and any other service <br/>
<a id="pl.119.8"></a><var>119.8</var>pension amount designated by the requester or requesters. The cost analysis must be <br/>
<a id="pl.119.9"></a><var>119.9</var>prepared using a mathematical procedure certified as accurate by an approved actuary <br/>
<a id="pl.119.10"></a><var>119.10</var>retained by the Public Employees Retirement Association.<br/>
<a id="pl.119.11"></a><var>119.11</var>(d) If a cost analysis is requested and a volunteer firefighters' relief association exists <br/>
<a id="pl.119.12"></a><var>119.12</var>that has filed the information required under section 69.051 in a timely fashion, upon <br/>
<a id="pl.119.13"></a><var>119.13</var>request by the executive director, the state auditor shall provide the most recent data <br/>
<a id="pl.119.14"></a><var>119.14</var>available on the financial condition of the volunteer firefighters' relief association, the most <br/>
<a id="pl.119.15"></a><var>119.15</var>recent firefighter demographic data available, and a copy of the current relief association <br/>
<a id="pl.119.16"></a><var>119.16</var>bylaws. If a cost analysis is requested, but no volunteer firefighters' relief association <br/>
<a id="pl.119.17"></a><var>119.17</var>exists, the chief administrative officer of the entity operating the fire department shall <br/>
<a id="pl.119.18"></a><var>119.18</var>provide the demographic information on the volunteer firefighters serving as members <br/>
<a id="pl.119.19"></a><var>119.19</var>of the fire department requested by the executive director.<br/>
<a id="pl.119.20"></a><var>119.20</var>(e) If a cost analysis is requested, the executive director of the State Board of <br/>
<a id="pl.119.21"></a><var>119.21</var>Investment shall review the investment portfolio of the relief association, if applicable, <br/>
<a id="pl.119.22"></a><var>119.22</var>for compliance with the applicable provisions of chapter 11A and for appropriateness <br/>
<a id="pl.119.23"></a><var>119.23</var>for retention under the established investment objectives and investment policies of the <br/>
<a id="pl.119.24"></a><var>119.24</var>State Board of Investment. If the prospective retirement coverage change is approved <br/>
<a id="pl.119.25"></a><var>119.25</var>under paragraph (f), the State Board of Investment may require that the relief association <br/>
<a id="pl.119.26"></a><var>119.26</var>liquidate any investment security or other asset which the executive director of the State <br/>
<a id="pl.119.27"></a><var>119.27</var>Board of Investment has determined to be an ineligible or inappropriate investment for <br/>
<a id="pl.119.28"></a><var>119.28</var>retention by the State Board of Investment. The security or asset liquidation must occur <br/>
<a id="pl.119.29"></a><var>119.29</var>before the effective date of the transfer of retirement plan coverage. If requested to do <br/>
<a id="pl.119.30"></a><var>119.30</var>so by the chief administrative officer of the relief association, the executive director of <br/>
<a id="pl.119.31"></a><var>119.31</var>the State Board of Investment shall provide advice about the best means to conduct the <br/>
<a id="pl.119.32"></a><var>119.32</var>liquidation.<br/>
<a id="pl.119.33"></a><var>119.33</var>(f) Upon receipt of the cost analysis, the governing body of the municipality or <br/>
<a id="pl.119.34"></a><var>119.34</var>independent nonprofit firefighting corporation associated with the fire department shall <br/>
<a id="pl.119.35"></a><var>119.35</var>approve or disapprove the retirement coverage change within 90 days. If the retirement <br/>
<a id="pl.119.36"></a><var>119.36</var>coverage change is not acted upon within 90 days, it is deemed to be disapproved. If the <br/>
<a id="pl.120.1"></a><var>120.1</var>retirement coverage change is approved by the applicable governing body, coverage by <br/>
<a id="pl.120.2"></a><var>120.2</var>the voluntary statewide lump-sum volunteer firefighter retirement plan is effective on the <br/>
<a id="pl.120.3"></a><var>120.3</var>next following January 1.<br/>
<br/>
<a id="bill.9.15.0"></a><a id="pl.120.4"></a><var>120.4</var>    Sec. 15. <b>[353G.06] DISESTABLISHMENT OF PRIOR VOLUNTEER </b><br/>
<a id="pl.120.5"></a><var>120.5</var><b>FIREFIGHTERS' RELIEF ASSOCIATION SPECIAL FUND UPON </b><br/>
<a id="pl.120.6"></a><var>120.6</var><b>RETIREMENT COVERAGE CHANGE.</b><br/>
<a id="pl.120.7"></a><var>120.7</var>    Subdivision 1. <b>Special fund disestablishment.</b> (a) On the date immediately prior <br/>
<a id="pl.120.8"></a><var>120.8</var>to the effective date of the coverage change, the special fund of the applicable volunteer <br/>
<a id="pl.120.9"></a><var>120.9</var>firefighters' relief association, if one exists, ceases to exist as a pension fund of the <br/>
<a id="pl.120.10"></a><var>120.10</var>association and legal title to the assets of the special fund transfers to the State Board of <br/>
<a id="pl.120.11"></a><var>120.11</var>Investment, with the beneficial title to the assets of the special fund remaining in the <br/>
<a id="pl.120.12"></a><var>120.12</var>applicable volunteer firefighters.<br/>
<a id="pl.120.13"></a><var>120.13</var>(b) If the market value of the special fund of the volunteer firefighters' relief <br/>
<a id="pl.120.14"></a><var>120.14</var>association for which retirement coverage changed under this chapter declines in the <br/>
<a id="pl.120.15"></a><var>120.15</var>interval between the date of the most recent financial report or statement, and the special <br/>
<a id="pl.120.16"></a><var>120.16</var>fund disestablishment date, the applicable municipality shall transfer an additional amount <br/>
<a id="pl.120.17"></a><var>120.17</var>to the State Board of Investment equal to that decline. If more than one municipality is <br/>
<a id="pl.120.18"></a><var>120.18</var>responsible for the direct management of the fire department, the municipalities shall <br/>
<a id="pl.120.19"></a><var>120.19</var>allocate the additional transfer amount among the various applicable municipalities <br/>
<a id="pl.120.20"></a><var>120.20</var>one-half in proportion to the population of each municipality and one-half in proportion <br/>
<a id="pl.120.21"></a><var>120.21</var>to the market value of each municipality.<br/>
<a id="pl.120.22"></a><var>120.22</var>    Subd. 2. <b>Other relief association changes.</b> In addition to the transfer and <br/>
<a id="pl.120.23"></a><var>120.23</var>disestablishment of the special fund under subdivision 1, notwithstanding any provisions <br/>
<a id="pl.120.24"></a><var>120.24</var>of chapter 424A or 424B to the contrary, upon the effective date of the change in volunteer <br/>
<a id="pl.120.25"></a><var>120.25</var>firefighter retirement coverage, if the relief association membership elects to retain the <br/>
<a id="pl.120.26"></a><var>120.26</var>relief association after the benefit coverage election, the following changes must be <br/>
<a id="pl.120.27"></a><var>120.27</var>implemented with respect to the applicable volunteer firefighters' relief association:<br/>
<a id="pl.120.28"></a><var>120.28</var>(1) the relief association board of trustees membership is reduced to five, comprised <br/>
<a id="pl.120.29"></a><var>120.29</var>of the fire chief of the fire department and four trustees elected by and from the relief <br/>
<a id="pl.120.30"></a><var>120.30</var>association membership;<br/>
<a id="pl.120.31"></a><var>120.31</var>(2) the relief association may only maintain a general fund, which continues to <br/>
<a id="pl.120.32"></a><var>120.32</var>be governed by section 424A.06;<br/>
<a id="pl.120.33"></a><var>120.33</var>(3) the relief association is not authorized to receive the proceeds of any state aid or <br/>
<a id="pl.120.34"></a><var>120.34</var>to receive any municipal funds; and<br/>
<a id="pl.121.1"></a><var>121.1</var>(4) the relief association may not pay any service pension or benefit that was not <br/>
<a id="pl.121.2"></a><var>121.2</var>authorized as a general fund disbursement under the articles of incorporation or bylaws of <br/>
<a id="pl.121.3"></a><var>121.3</var>the relief association in effect prior to the plan coverage election process.<br/>
<a id="pl.121.4"></a><var>121.4</var>    Subd. 3. <b>Successor in interest.</b> Upon the disestablishment of the special fund of <br/>
<a id="pl.121.5"></a><var>121.5</var>the volunteer firefighters' relief association under this section, the voluntary statewide <br/>
<a id="pl.121.6"></a><var>121.6</var>lump-sum volunteer firefighter retirement plan is the successor in interest of the special <br/>
<a id="pl.121.7"></a><var>121.7</var>fund of the volunteer firefighters' relief association for all claims against the special fund <br/>
<a id="pl.121.8"></a><var>121.8</var>other than a claim against the special fund, the volunteer firefighters' relief association, <br/>
<a id="pl.121.9"></a><var>121.9</var>the municipality, the fire department, or any person connected with the volunteer <br/>
<a id="pl.121.10"></a><var>121.10</var>firefighters' relief association in a fiduciary capacity under chapter 356A or common law <br/>
<a id="pl.121.11"></a><var>121.11</var>that was based on any act or acts which were not performed in good faith and which <br/>
<a id="pl.121.12"></a><var>121.12</var>constituted a breach of a fiduciary obligation. As the successor in interest of the special <br/>
<a id="pl.121.13"></a><var>121.13</var>fund of the volunteer firefighters' relief association, the voluntary statewide lump-sum <br/>
<a id="pl.121.14"></a><var>121.14</var>volunteer firefighter retirement plan may assert any applicable defense in any judicial <br/>
<a id="pl.121.15"></a><var>121.15</var>proceeding which the board of trustees of the volunteer firefighters' relief association or <br/>
<a id="pl.121.16"></a><var>121.16</var>the municipality would have been entitled to assert.<br/>
<br/>
<a id="bill.9.16.0"></a><a id="pl.121.17"></a><var>121.17</var>    Sec. 16. <b>[353G.07] CERTIFICATION OF GOOD TIME SERVICE CREDIT.</b><br/>
<a id="pl.121.18"></a><var>121.18</var>(a) Annually, by March 31, the fire chief of the fire department with firefighters who <br/>
<a id="pl.121.19"></a><var>121.19</var>are active members of the retirement plan shall certify to the executive director the good <br/>
<a id="pl.121.20"></a><var>121.20</var>time service credit for the previous calendar year of each firefighter rendering active <br/>
<a id="pl.121.21"></a><var>121.21</var>service with the fire department.<br/>
<a id="pl.121.22"></a><var>121.22</var>(b) The fire chief shall provide to each firefighter rendering active service with <br/>
<a id="pl.121.23"></a><var>121.23</var>the fire department notification of the amount of good time service credit rendered by <br/>
<a id="pl.121.24"></a><var>121.24</var>the firefighter for the calendar year. The good time service credit notification must be <br/>
<a id="pl.121.25"></a><var>121.25</var>provided to the firefighter 60 days before its certification to the executive director of the <br/>
<a id="pl.121.26"></a><var>121.26</var>Public Employees Retirement Association, along with an indication of the process for the <br/>
<a id="pl.121.27"></a><var>121.27</var>firefighter to challenge the fire chief's determination of good time service credit. If the <br/>
<a id="pl.121.28"></a><var>121.28</var>good time service credit amount is challenged in a timely fashion, the fire chief shall hold <br/>
<a id="pl.121.29"></a><var>121.29</var>a hearing on the challenge, accept and consider any additional pertinent information, <br/>
<a id="pl.121.30"></a><var>121.30</var>and make a final determination of good time service credit. The final determination of <br/>
<a id="pl.121.31"></a><var>121.31</var>good time service credit by the fire chief is not reviewable by the executive director of <br/>
<a id="pl.121.32"></a><var>121.32</var>the Public Employees Retirement Association or by the board of trustees of the Public <br/>
<a id="pl.121.33"></a><var>121.33</var>Employees Retirement Association.<br/>
<a id="pl.122.1"></a><var>122.1</var>(c) The good time service credit certification is an official public document. If a <br/>
<a id="pl.122.2"></a><var>122.2</var>false good time service credit certification is filed or if false information regarding good <br/>
<a id="pl.122.3"></a><var>122.3</var>time service credits is provided, section 353.19 applies.<br/>
<a id="pl.122.4"></a><var>122.4</var>(d) The good time service credit certification must be expressed as a percentage of a <br/>
<a id="pl.122.5"></a><var>122.5</var>full year of service during which an active firefighter rendered at least the minimum level <br/>
<a id="pl.122.6"></a><var>122.6</var>and quantity of fire suppression, emergency response, fire prevention, or fire education <br/>
<a id="pl.122.7"></a><var>122.7</var>duties required by the fire department under the rules and regulations applicable to the <br/>
<a id="pl.122.8"></a><var>122.8</var>fire department. No more than one year of good time service credit may be certified <br/>
<a id="pl.122.9"></a><var>122.9</var>for a calendar year.<br/>
<a id="pl.122.10"></a><var>122.10</var>(e) If a firefighter covered by the retirement plan leaves active firefighting service <br/>
<a id="pl.122.11"></a><var>122.11</var>to render active military service that is required to be covered by the federal Uniformed <br/>
<a id="pl.122.12"></a><var>122.12</var>Services Employment and Reemployment Rights Act, as amended, the person must be <br/>
<a id="pl.122.13"></a><var>122.13</var>certified as providing a full year of good time service credit in each year of the military <br/>
<a id="pl.122.14"></a><var>122.14</var>service, up to the applicable limit of the federal Uniformed Services Employment and <br/>
<a id="pl.122.15"></a><var>122.15</var>Reemployment Rights Act. If the firefighter does not return from the military service in <br/>
<a id="pl.122.16"></a><var>122.16</var>compliance with the federal Uniformed Services Employment and Reemployment Rights <br/>
<a id="pl.122.17"></a><var>122.17</var>Act, the good time service credits applicable to that military service credit period are <br/>
<a id="pl.122.18"></a><var>122.18</var>forfeited and cancel at the end of the calendar year in which the federal law time limit <br/>
<a id="pl.122.19"></a><var>122.19</var>occurs.<br/>
<br/>
<a id="bill.9.17.0"></a><a id="pl.122.20"></a><var>122.20</var>    Sec. 17. <b>[353G.08] RETIREMENT PLAN FUNDING; DISBURSEMENTS.</b><br/>
<a id="pl.122.21"></a><var>122.21</var>(a) Annually, the executive director shall determine the funding requirements of <br/>
<a id="pl.122.22"></a><var>122.22</var>each account in the voluntary statewide lump-sum volunteer firefighter retirement plan <br/>
<a id="pl.122.23"></a><var>122.23</var>on or before August 1. The funding requirements as directed under this section, must be <br/>
<a id="pl.122.24"></a><var>122.24</var>determined using a mathematical procedure developed and certified as accurate by an <br/>
<a id="pl.122.25"></a><var>122.25</var>approved actuary retained by the Public Employees Retirement Association and based on <br/>
<a id="pl.122.26"></a><var>122.26</var>present value factors using a six percent interest rate, without any decrement assumptions. <br/>
<a id="pl.122.27"></a><var>122.27</var>The funding requirements must be certified to the entity or entities associated with the fire <br/>
<a id="pl.122.28"></a><var>122.28</var>department whose active firefighters are covered by the retirement plan.<br/>
<a id="pl.122.29"></a><var>122.29</var>(b) The overall funding balance of each account for the current calendar year must <br/>
<a id="pl.122.30"></a><var>122.30</var>be determined in the following manner:<br/>
<a id="pl.122.31"></a><var>122.31</var>(1) The total accrued liability for all active and deferred members of the account as <br/>
<a id="pl.122.32"></a><var>122.32</var>of December 31 of the current year must be calculated based on the good time service <br/>
<a id="pl.122.33"></a><var>122.33</var>credit of active and deferred members as of that date.<br/>
<a id="pl.122.34"></a><var>122.34</var>(2) The total present assets of the account projected to December 31 of the current <br/>
<a id="pl.122.35"></a><var>122.35</var>year, including receipts by and disbursements from the account anticipated to occur on or <br/>
<a id="pl.123.1"></a><var>123.1</var>before December 31, must be calculated. To the extent possible, the market value of assets <br/>
<a id="pl.123.2"></a><var>123.2</var>must be utilized in making this calculation.<br/>
<a id="pl.123.3"></a><var>123.3</var>(3) The amount of the total present assets calculated under clause (2) must be <br/>
<a id="pl.123.4"></a><var>123.4</var>subtracted from the amount of the total accrued liability calculated under clause (1). If the <br/>
<a id="pl.123.5"></a><var>123.5</var>amount of total present assets exceeds the amount of the total accrued liability, then the <br/>
<a id="pl.123.6"></a><var>123.6</var>account is considered to have a surplus over full funding. If the amount of the total present <br/>
<a id="pl.123.7"></a><var>123.7</var>assets is less than the amount of the total accrued liability, then the account is considered <br/>
<a id="pl.123.8"></a><var>123.8</var>to have a deficit from full funding. If the amount of total present assets is equal to the <br/>
<a id="pl.123.9"></a><var>123.9</var>amount of the total accrued liability, then the special fund is considered to be fully funded.<br/>
<a id="pl.123.10"></a><var>123.10</var>(c) The financial requirements of each account for the following calendar year must <br/>
<a id="pl.123.11"></a><var>123.11</var>be determined in the following manner:<br/>
<a id="pl.123.12"></a><var>123.12</var>(1) The total accrued liability for all active and deferred members of the account <br/>
<a id="pl.123.13"></a><var>123.13</var>as of December 31 of the calendar year next following the current calendar year must be <br/>
<a id="pl.123.14"></a><var>123.14</var>calculated based on the good time service used in the calculation under paragraph (b), <br/>
<a id="pl.123.15"></a><var>123.15</var>clause (1), increased by one year.<br/>
<a id="pl.123.16"></a><var>123.16</var>(2) The increase in the total accrued liability of the account for the following calendar <br/>
<a id="pl.123.17"></a><var>123.17</var>year over the total accrued liability of the account for the current year must be calculated.<br/>
<a id="pl.123.18"></a><var>123.18</var>(3) The amount of anticipated future administrative expenses of the account must be <br/>
<a id="pl.123.19"></a><var>123.19</var>calculated by multiplying the dollar amount of the administrative expenses for the most <br/>
<a id="pl.123.20"></a><var>123.20</var>recent prior calendar year by the factor of 1.035.<br/>
<a id="pl.123.21"></a><var>123.21</var>(4) If the account is fully funded, the financial requirement of the account for the <br/>
<a id="pl.123.22"></a><var>123.22</var>following calendar year is the total of the amounts calculated under clauses (2) and (3).<br/>
<a id="pl.123.23"></a><var>123.23</var>(5) If the account has a deficit from full funding, the financial requirement of the <br/>
<a id="pl.123.24"></a><var>123.24</var>account for the following calendar year is the total of the amounts calculated under clauses <br/>
<a id="pl.123.25"></a><var>123.25</var>(2) and (3) plus an amount equal to one-tenth of the amount of the deficit from full <br/>
<a id="pl.123.26"></a><var>123.26</var>funding of the account.<br/>
<a id="pl.123.27"></a><var>123.27</var>(6) If the account has a surplus over full funding, the financial requirement of <br/>
<a id="pl.123.28"></a><var>123.28</var>the account for the following calendar year is the financial requirement of the account <br/>
<a id="pl.123.29"></a><var>123.29</var>calculated as though the account was fully funded under clause (4) and, if the account has <br/>
<a id="pl.123.30"></a><var>123.30</var>also had a surplus over full funding during the prior two years, additionally reduced by an <br/>
<a id="pl.123.31"></a><var>123.31</var>amount equal to one-tenth of the amount of the surplus over full funding of the account.<br/>
<a id="pl.123.32"></a><var>123.32</var>(d) The required contribution of the entity or entities associated with the fire <br/>
<a id="pl.123.33"></a><var>123.33</var>department whose active firefighters are covered by the retirement plan is the annual <br/>
<a id="pl.123.34"></a><var>123.34</var>financial requirements of the account of the retirement plan under paragraph (c) reduced <br/>
<a id="pl.123.35"></a><var>123.35</var>by the amount of any fire state aid payable under sections 69.011 to 69.051 reasonably <br/>
<a id="pl.123.36"></a><var>123.36</var>anticipated to be received by the retirement plan attributable to the entity or entities during <br/>
<a id="pl.124.1"></a><var>124.1</var>the following calendar year, and an amount of interest on the assets projected to be <br/>
<a id="pl.124.2"></a><var>124.2</var>received during the following calendar year calculated at the rate of six percent per annum. <br/>
<a id="pl.124.3"></a><var>124.3</var>The required contribution must be allocated between the entities if more than one entity <br/>
<a id="pl.124.4"></a><var>124.4</var>is involved. A reasonable amount of anticipated fire state aid is an amount that does not <br/>
<a id="pl.124.5"></a><var>124.5</var>exceed the fire state aid actually received in the prior year multiplied by the factor 1.035.<br/>
<a id="pl.124.6"></a><var>124.6</var>(e) The required contribution calculated in paragraph (d) must be paid to the <br/>
<a id="pl.124.7"></a><var>124.7</var>retirement plan on or before December 31 of the year for which it was calculated. If <br/>
<a id="pl.124.8"></a><var>124.8</var>the contribution is not received by the retirement plan by December 31, it is payable <br/>
<a id="pl.124.9"></a><var>124.9</var>with interest at an annual compound rate of six percent from the date due until the date <br/>
<a id="pl.124.10"></a><var>124.10</var>payment is received by the retirement plan. If the entity does not pay the full amount of <br/>
<a id="pl.124.11"></a><var>124.11</var>the required contribution, the executive director shall collect the unpaid amount under <br/>
<a id="pl.124.12"></a><var>124.12</var>section 353.28, subdivision 6.<br/>
<a id="pl.124.13"></a><var>124.13</var>(f) The assets of the retirement fund may only be disbursed for:<br/>
<a id="pl.124.14"></a><var>124.14</var>(1) the administrative expenses of the retirement plan;<br/>
<a id="pl.124.15"></a><var>124.15</var>(2) the investment expenses of the retirement fund; <br/>
<a id="pl.124.16"></a><var>124.16</var>(3) the service pensions payable under section 353G.10, 353G.11, 353G.14, or <br/>
<a id="pl.124.17"></a><var>124.17</var>353G.15; and <br/>
<a id="pl.124.18"></a><var>124.18</var>(4) the survivor benefits payable under section 353G.12.<br/>
<br/>
<a id="bill.9.18.0"></a><a id="pl.124.19"></a><var>124.19</var>    Sec. 18. <b>[353G.09] RETIREMENT BENEFIT ELIGIBILITY.</b><br/>
<a id="pl.124.20"></a><var>124.20</var>    Subdivision 1. <b>Entitlement.</b> Except as provided in subdivision 3, an active member <br/>
<a id="pl.124.21"></a><var>124.21</var>of the retirement plan is entitled to a lump-sum service pension from the retirement plan <br/>
<a id="pl.124.22"></a><var>124.22</var>if the person:<br/>
<a id="pl.124.23"></a><var>124.23</var>(1) has separated from active service with the fire department for at least 30 days;<br/>
<a id="pl.124.24"></a><var>124.24</var>(2) has attained the age of at least 50 years;<br/>
<a id="pl.124.25"></a><var>124.25</var>(3) has completed at least five years of good time service credit as a member of <br/>
<a id="pl.124.26"></a><var>124.26</var>the retirement plan; and<br/>
<a id="pl.124.27"></a><var>124.27</var>(4) applies in a manner prescribed by the executive director for the service pension.<br/>
<a id="pl.124.28"></a><var>124.28</var>    Subd. 2. <b>Vesting schedule; nonforfeitable portion of service pension.</b> If an <br/>
<a id="pl.124.29"></a><var>124.29</var>active member has completed less than 20 years of good time service credit, the person's <br/>
<a id="pl.124.30"></a><var>124.30</var>entitlement is to the nonforfeitable percentage of the applicable service pension amount, <br/>
<a id="pl.124.31"></a><var>124.31</var>as follows:<br/>
<table>
<col width="50px"/>
<col width="2.5"/>
<col width="12.5"/>
<col width="12.5"/>
<col width="23.5"/>
<col width="14"/>
<tr>
<td><a id="pl.124.32"></a><var>124.32</var><br/>
<a id="pl.124.33"></a><var>124.33</var><br/>
</td>
<td align="center"></td>
<td align="center" colspan="2">Completed years of good time <br/>
service credit<br/>
</td>
<td align="center" colspan="2">Nonforfeitable percentage of the service pension<br/>
</td>
</tr>
<tr>
<td><a id="pl.124.34"></a><var>124.34</var><br/>
</td>
<td></td>
<td></td>
<td>5<br/>
</td>
<td align="right">40 percent<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.124.35"></a><var>124.35</var><br/>
</td>
<td></td>
<td></td>
<td>6<br/>
</td>
<td align="right">44 percent<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.124.36"></a><var>124.36</var><br/>
</td>
<td></td>
<td></td>
<td>7<br/>
</td>
<td align="right">48 percent<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.125.1"></a><var>125.1</var><br/>
</td>
<td></td>
<td></td>
<td>8<br/>
</td>
<td align="right">52 percent<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.125.2"></a><var>125.2</var><br/>
</td>
<td></td>
<td></td>
<td>9<br/>
</td>
<td align="right">56 percent<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.125.3"></a><var>125.3</var><br/>
</td>
<td></td>
<td></td>
<td>10<br/>
</td>
<td align="right">60 percent<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.125.4"></a><var>125.4</var><br/>
</td>
<td></td>
<td></td>
<td>11<br/>
</td>
<td align="right">64 percent<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.125.5"></a><var>125.5</var><br/>
</td>
<td></td>
<td></td>
<td>12<br/>
</td>
<td align="right">68 percent<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.125.6"></a><var>125.6</var><br/>
</td>
<td></td>
<td></td>
<td>13<br/>
</td>
<td align="right">72 percent<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.125.7"></a><var>125.7</var><br/>
</td>
<td></td>
<td></td>
<td>14<br/>
</td>
<td align="right">76 percent<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.125.8"></a><var>125.8</var><br/>
</td>
<td></td>
<td></td>
<td>15<br/>
</td>
<td align="right">80 percent<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.125.9"></a><var>125.9</var><br/>
</td>
<td></td>
<td></td>
<td>16<br/>
</td>
<td align="right">84 percent<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.125.10"></a><var>125.10</var><br/>
</td>
<td></td>
<td></td>
<td>17<br/>
</td>
<td align="right">88 percent<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.125.11"></a><var>125.11</var><br/>
</td>
<td></td>
<td></td>
<td>18<br/>
</td>
<td align="right">92 percent<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.125.12"></a><var>125.12</var><br/>
</td>
<td></td>
<td></td>
<td>19<br/>
</td>
<td align="right">96 percent<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.125.13"></a><var>125.13</var><br/>
</td>
<td></td>
<td></td>
<td>20 and thereafter<br/>
</td>
<td align="right">100 percent<br/>
</td>
<td></td>
</tr>
</table><a id="pl.125.14"></a><var>125.14</var>    Subd. 3. <b>Alternative pension eligibility and computation.</b> (a) An active member <br/>
<a id="pl.125.15"></a><var>125.15</var>of the retirement plan is entitled to an alternative lump-sum service pension from the <br/>
<a id="pl.125.16"></a><var>125.16</var>retirement plan if the person:<br/>
<a id="pl.125.17"></a><var>125.17</var>(1) has separated from active service with the fire department for at least 30 days;<br/>
<a id="pl.125.18"></a><var>125.18</var>(2) has attained the age of at least 50 years or the age for receipt of a service pension <br/>
<a id="pl.125.19"></a><var>125.19</var>under the benefit plan of the applicable former volunteer firefighters' relief association <br/>
<a id="pl.125.20"></a><var>125.20</var>as of the date immediately prior to the election of the retirement coverage change, <br/>
<a id="pl.125.21"></a><var>125.21</var>whichever is later;<br/>
<a id="pl.125.22"></a><var>125.22</var>(3) has completed at least five years of active service with the fire department and at <br/>
<a id="pl.125.23"></a><var>125.23</var>least five years in total as a member of the applicable former volunteer firefighters' relief <br/>
<a id="pl.125.24"></a><var>125.24</var>association or of the retirement plan, but has not rendered at least five years of good time <br/>
<a id="pl.125.25"></a><var>125.25</var>service credit as a member of the retirement plan; and<br/>
<a id="pl.125.26"></a><var>125.26</var>(4) applies in a manner prescribed by the executive director for the service pension.<br/>
<a id="pl.125.27"></a><var>125.27</var>(b) The alternative lump-sum service pension is the service pension amount specified <br/>
<a id="pl.125.28"></a><var>125.28</var>in the bylaws of the applicable former volunteer firefighters' relief association either <br/>
<a id="pl.125.29"></a><var>125.29</var>as of the date immediately prior to the election of the retirement coverage change or <br/>
<a id="pl.125.30"></a><var>125.30</var>as of the date immediately before the termination of firefighting services, whichever is <br/>
<a id="pl.125.31"></a><var>125.31</var>earlier, multiplied by the total number of years of service as a member of that volunteer <br/>
<a id="pl.125.32"></a><var>125.32</var>firefighters' relief association and as a member of the retirement plan.<br/>
<br/>
<a id="bill.9.19.0"></a><a id="pl.125.33"></a><var>125.33</var>    Sec. 19. <b>[353G.10] DEFERRED SERVICE PENSION AMOUNT.</b><br/>
<a id="pl.125.34"></a><var>125.34</var>A person who was an active member of a fire department covered by the retirement <br/>
<a id="pl.125.35"></a><var>125.35</var>plan who has separated from active firefighting service for at least 30 days and who has <br/>
<a id="pl.125.36"></a><var>125.36</var>completed at least five years of good time service credit, but has not attained the age of <br/>
<a id="pl.125.37"></a><var>125.37</var>50 years, is entitled to a deferred service pension on or after attaining the age of 50 years <br/>
<a id="pl.126.1"></a><var>126.1</var>and applying in a manner specified by the executive director for the service pension. The <br/>
<a id="pl.126.2"></a><var>126.2</var>service pension payable is the nonforfeitable percentage of the service pension under <br/>
<a id="pl.126.3"></a><var>126.3</var>section 353G.09, subdivision 2, and is payable without any interest over the period of <br/>
<a id="pl.126.4"></a><var>126.4</var>deferral.<br/>
<br/>
<a id="bill.9.20.0"></a><a id="pl.126.5"></a><var>126.5</var>    Sec. 20. <b>[353G.11] SERVICE PENSION LEVELS.</b><br/>
<a id="pl.126.6"></a><var>126.6</var>    Subdivision 1. <b>Levels.</b> The retirement plan provides the following levels of service <br/>
<a id="pl.126.7"></a><var>126.7</var>pension amounts to be selected at the election of coverage, or, if fully funded, thereafter:<br/>
<table>
<col width="50px"/>
<col width="4.5"/>
<col width="15"/>
<col width="45.5"/>
<tr>
<td><a id="pl.126.8"></a><var>126.8</var><br/>
</td>
<td></td>
<td>Level A<br/>
</td>
<td>$500 per year of good time service credit<br/>
</td>
</tr>
<tr>
<td><a id="pl.126.9"></a><var>126.9</var><br/>
</td>
<td></td>
<td>Level B<br/>
</td>
<td>$750 per year of good time service credit<br/>
</td>
</tr>
<tr>
<td><a id="pl.126.10"></a><var>126.10</var><br/>
</td>
<td></td>
<td>Level C<br/>
</td>
<td>$1,000 per year of good time service credit<br/>
</td>
</tr>
<tr>
<td><a id="pl.126.11"></a><var>126.11</var><br/>
</td>
<td></td>
<td>Level D<br/>
</td>
<td>$1,500 per year of good time service credit<br/>
</td>
</tr>
<tr>
<td><a id="pl.126.12"></a><var>126.12</var><br/>
</td>
<td></td>
<td>Level E<br/>
</td>
<td>$2,000 per year of good time service credit<br/>
</td>
</tr>
<tr>
<td><a id="pl.126.13"></a><var>126.13</var><br/>
</td>
<td></td>
<td>Level F<br/>
</td>
<td>$2,500 per year of good time service credit<br/>
</td>
</tr>
<tr>
<td><a id="pl.126.14"></a><var>126.14</var><br/>
</td>
<td></td>
<td>Level G<br/>
</td>
<td>$3,000 per year of good time service credit<br/>
</td>
</tr>
<tr>
<td><a id="pl.126.15"></a><var>126.15</var><br/>
</td>
<td></td>
<td>Level H<br/>
</td>
<td>$3,500 per year of good time service credit<br/>
</td>
</tr>
<tr>
<td><a id="pl.126.16"></a><var>126.16</var><br/>
</td>
<td></td>
<td>Level I<br/>
</td>
<td>$4,000 per year of good time service credit<br/>
</td>
</tr>
<tr>
<td><a id="pl.126.17"></a><var>126.17</var><br/>
</td>
<td></td>
<td>Level J<br/>
</td>
<td>$4,500 per year of good time service credit<br/>
</td>
</tr>
<tr>
<td><a id="pl.126.18"></a><var>126.18</var><br/>
</td>
<td></td>
<td>Level K<br/>
</td>
<td>$5,000 per year of good time service credit<br/>
</td>
</tr>
<tr>
<td><a id="pl.126.19"></a><var>126.19</var><br/>
</td>
<td></td>
<td>Level L<br/>
</td>
<td>$5,500 per year of good time service credit<br/>
</td>
</tr>
<tr>
<td><a id="pl.126.20"></a><var>126.20</var><br/>
</td>
<td></td>
<td>Level M<br/>
</td>
<td>$6,000 per year of good time service credit<br/>
</td>
</tr>
<tr>
<td><a id="pl.126.21"></a><var>126.21</var><br/>
</td>
<td></td>
<td>Level N<br/>
</td>
<td>$6,500 per year of good time service credit<br/>
</td>
</tr>
<tr>
<td><a id="pl.126.22"></a><var>126.22</var><br/>
</td>
<td></td>
<td>Level O<br/>
</td>
<td>$7,000 per year of good time service credit<br/>
</td>
</tr>
<tr>
<td><a id="pl.126.23"></a><var>126.23</var><br/>
</td>
<td></td>
<td>Level P<br/>
</td>
<td>$7,500 per year of good time service credit<br/>
</td>
</tr>
</table><a id="pl.126.24"></a><var>126.24</var>    Subd. 2. <b>Level selection.</b> At the time of the election to transfer retirement coverage, <br/>
<a id="pl.126.25"></a><var>126.25</var>or on April 30 thereafter, the governing body or bodies of the entity or entities operating <br/>
<a id="pl.126.26"></a><var>126.26</var>the fire department whose firefighters are covered by the retirement plan may request <br/>
<a id="pl.126.27"></a><var>126.27</var>a cost estimate from the executive director of an increase in the service pension level <br/>
<a id="pl.126.28"></a><var>126.28</var>applicable to the active firefighters of the fire department. Within 90 days of the receipt of <br/>
<a id="pl.126.29"></a><var>126.29</var>the cost estimate prepared by the executive director using a procedure certified as accurate <br/>
<a id="pl.126.30"></a><var>126.30</var>by the approved actuary retained by the Public Employees Retirement Association, the <br/>
<a id="pl.126.31"></a><var>126.31</var>governing body or bodies may approve the service pension level change, effective for the <br/>
<a id="pl.126.32"></a><var>126.32</var>following calendar year. If not approved in a timely fashion, the service pension level <br/>
<a id="pl.126.33"></a><var>126.33</var>change is considered to have been disapproved.<br/>
<a id="pl.126.34"></a><var>126.34</var>    Subd. 3. <b>Supplemental benefit.</b> The retirement plan also shall pay a supplemental <br/>
<a id="pl.126.35"></a><var>126.35</var>benefit as provided for in section 424A.10.<br/>
<a id="pl.126.36"></a><var>126.36</var>    Subd. 4. <b>Ancillary benefits.</b> No disability, death, funeral, or other ancillary benefit <br/>
<a id="pl.126.37"></a><var>126.37</var>beyond a service pension or a survivor benefit is payable from the retirement plan.<br/>
<br/>
<a id="bill.9.21.0"></a><a id="pl.127.1"></a><var>127.1</var>    Sec. 21. <b>[353G.12] SURVIVOR BENEFIT.</b><br/>
<a id="pl.127.2"></a><var>127.2</var>    Subdivision 1. <b>Entitlement.</b> (a) A survivor of a deceased active member of the <br/>
<a id="pl.127.3"></a><var>127.3</var>retirement plan or a deceased deferred member of the retirement plan, upon application as <br/>
<a id="pl.127.4"></a><var>127.4</var>prescribed by the executive director, is entitled to receive a survivor benefit.<br/>
<a id="pl.127.5"></a><var>127.5</var>(b) A survivor is the spouse of the member, or if none, the minor child or children of <br/>
<a id="pl.127.6"></a><var>127.6</var>the member, or if none, the estate of the member.<br/>
<a id="pl.127.7"></a><var>127.7</var>    Subd. 2. <b>Survivor benefit amount.</b> The amount of the survivor benefit is the <br/>
<a id="pl.127.8"></a><var>127.8</var>amount of the service pension that would have been payable to the member of the <br/>
<a id="pl.127.9"></a><var>127.9</var>retirement plan on the date of death if the member had been age 50 or older on that date.<br/>
<br/>
<a id="bill.9.22.0"></a><a id="pl.127.10"></a><var>127.10</var>    Sec. 22. <b>[353G.13] PORTABILITY.</b><br/>
<a id="pl.127.11"></a><var>127.11</var>    Subdivision 1. <b>Eligibility.</b> An active firefighter who is a member of the retirement <br/>
<a id="pl.127.12"></a><var>127.12</var>plan who also renders firefighting service and has good time service credit in the retirement <br/>
<a id="pl.127.13"></a><var>127.13</var>plan from another fire department, if the good time service credit in the plan from a <br/>
<a id="pl.127.14"></a><var>127.14</var>combination of periods totals at least five years, is eligible, upon complying with the other <br/>
<a id="pl.127.15"></a><var>127.15</var>requirements of section 353G.09, to receive a service pension upon filing an application in <br/>
<a id="pl.127.16"></a><var>127.16</var>the manner prescribed by the executive director, computed as provided in subdivision 2.<br/>
<a id="pl.127.17"></a><var>127.17</var>    Subd. 2. <b>Combined service pension computation.</b> The service pension payable to <br/>
<a id="pl.127.18"></a><var>127.18</var>a firefighter who qualifies under subdivision 1 is the per year of good time service credit <br/>
<a id="pl.127.19"></a><var>127.19</var>service pension amount in effect for each account in which the firefighter has good time <br/>
<a id="pl.127.20"></a><var>127.20</var>service credit as of the date on which the firefighter terminated active service with the fire <br/>
<a id="pl.127.21"></a><var>127.21</var>department associated with the applicable account, multiplied by the number of years of <br/>
<a id="pl.127.22"></a><var>127.22</var>good time service credit that the firefighter has in the applicable account.<br/>
<a id="pl.127.23"></a><var>127.23</var>    Subd. 3. <b>Payment.</b> A service pension under this section must be paid in a single <br/>
<a id="pl.127.24"></a><var>127.24</var>payment, with the applicable portion of the total service pension payment amount <br/>
<a id="pl.127.25"></a><var>127.25</var>deducted from each account.<br/>
<br/>
<a id="bill.9.23.0"></a><a id="pl.127.26"></a><var>127.26</var>    Sec. 23. <b>[353G.14] PURCHASE OF ANNUITY CONTRACTS.</b><br/>
<a id="pl.127.27"></a><var>127.27</var>The executive director may purchase an annuity contract on behalf of a retiring <br/>
<a id="pl.127.28"></a><var>127.28</var>firefighter with a total premium payment in an amount equal to the lump-sum service <br/>
<a id="pl.127.29"></a><var>127.29</var>pension payable under section 353G.09 if the purchase was requested by the retiring <br/>
<a id="pl.127.30"></a><var>127.30</var>firefighter in a manner prescribed by the executive director. The annuity contract must <br/>
<a id="pl.127.31"></a><var>127.31</var>be purchased from an insurance carrier that is licensed to do business in this state. If <br/>
<a id="pl.127.32"></a><var>127.32</var>purchased, the annuity contract is in lieu of any service pension or other benefit from the <br/>
<a id="pl.127.33"></a><var>127.33</var>retirement plan. The annuity contract may be purchased at any time after the volunteer <br/>
<a id="pl.128.1"></a><var>128.1</var>firefighter discontinues active service, but the annuity contract must stipulate that no <br/>
<a id="pl.128.2"></a><var>128.2</var>annuity amounts are payable before the former volunteer firefighter attains the age of 50.<br/>
<br/>
<a id="bill.9.24.0"></a><a id="pl.128.3"></a><var>128.3</var>    Sec. 24. <b>[353G.15] INDIVIDUAL RETIREMENT ACCOUNT TRANSFER.</b><br/>
<a id="pl.128.4"></a><var>128.4</var>Upon receipt of a determination that the retirement plan is a qualified pension plan <br/>
<a id="pl.128.5"></a><var>128.5</var>under section 401(a) of the Internal Revenue Code, as amended, the executive director, <br/>
<a id="pl.128.6"></a><var>128.6</var>upon request, shall transfer the service pension amount under sections 353G.08 and <br/>
<a id="pl.128.7"></a><var>128.7</var>353G.11 of a former volunteer firefighter who has terminated active firefighting services <br/>
<a id="pl.128.8"></a><var>128.8</var>covered by the plan and who has attained the age of at least 50 years to the person's <br/>
<a id="pl.128.9"></a><var>128.9</var>individual retirement account under section 408(a) of the federal Internal Revenue Code, <br/>
<a id="pl.128.10"></a><var>128.10</var>as amended. The transfer request must be in a manner prescribed by the executive director <br/>
<a id="pl.128.11"></a><var>128.11</var>and must be filed by the former volunteer firefighter who has sufficient service credit to be <br/>
<a id="pl.128.12"></a><var>128.12</var>entitled to a service pension or, following the death of a participating active firefighter, <br/>
<a id="pl.128.13"></a><var>128.13</var>must be filed by the deceased firefighter's surviving spouse.<br/>
<br/>
<a id="bill.9.25.0"></a><a id="pl.128.14"></a><var>128.14</var>    Sec. 25. <b>[353G.16] EXEMPTION FROM PROCESS.</b><br/>
<a id="pl.128.15"></a><var>128.15</var>The provisions of section 356.401 apply to the retirement plan.<br/>
<br/>
<a id="bill.9.26.0"></a><a id="pl.128.16"></a><var>128.16</var>    Sec. 26. Minnesota Statutes 2008, section 356.20, subdivision 2, is amended to read:<br/>
<a id="pl.128.17"></a><var>128.17</var>    Subd. 2. <b>Covered public pension plans and funds.</b> This section applies to the <br/>
<a id="pl.128.18"></a><var>128.18</var>following public pension plans:<br/>
<a id="pl.128.19"></a><var>128.19</var>    (1) the general state employees retirement plan of the Minnesota State Retirement <br/>
<a id="pl.128.20"></a><var>128.20</var>System;<br/>
<a id="pl.128.21"></a><var>128.21</var>    (2) the general employees retirement plan of the Public Employees Retirement <br/>
<a id="pl.128.22"></a><var>128.22</var>Association;<br/>
<a id="pl.128.23"></a><var>128.23</var>    (3) the Teachers Retirement Association;<br/>
<a id="pl.128.24"></a><var>128.24</var>    (4) the State Patrol retirement plan;<br/>
<a id="pl.128.25"></a><var>128.25</var>    (5) the St. Paul Teachers Retirement Fund Association;<br/>
<a id="pl.128.26"></a><var>128.26</var>    (6) the Duluth Teachers Retirement Fund Association;<br/>
<a id="pl.128.27"></a><var>128.27</var>    (7) the Minneapolis Employees Retirement Fund;<br/>
<a id="pl.128.28"></a><var>128.28</var>    (8) the University of Minnesota faculty retirement plan;<br/>
<a id="pl.128.29"></a><var>128.29</var>    (9) the University of Minnesota faculty supplemental retirement plan;<br/>
<a id="pl.128.30"></a><var>128.30</var>    (10) the judges retirement fund;<br/>
<a id="pl.128.31"></a><var>128.31</var>    (11) a police or firefighter's relief association specified or described in section 
         <statute_ref>69.77, <br/>
<a id="pl.128.32"></a><var>128.32</var>subdivision 1a
         </statute_ref>;<br/>
<a id="pl.129.1"></a><var>129.1</var>    (12) a volunteer firefighter relief association governed by section 
         <statute_ref>69.771, subdivision <br/>
<a id="pl.129.2"></a><var>129.2</var>1
         </statute_ref>; <br/>
<a id="pl.129.3"></a><var>129.3</var>    (13) the public employees police and fire plan of the Public Employees Retirement <br/>
<a id="pl.129.4"></a><var>129.4</var>Association;<br/>
<a id="pl.129.5"></a><var>129.5</var>    (14) the correctional state employees retirement plan of the Minnesota State <br/>
<a id="pl.129.6"></a><var>129.6</var>Retirement System; and<br/>
<a id="pl.129.7"></a><var>129.7</var>    (15) the local government correctional service retirement plan of the Public <br/>
<a id="pl.129.8"></a><var>129.8</var>Employees Retirement Association; and<br/>
<a id="pl.129.9"></a><var>129.9</var>(16) the voluntary statewide lump-sum volunteer firefighter retirement plan.<br/>
<br/>
<a id="bill.9.27.0"></a><a id="pl.129.10"></a><var>129.10</var>    Sec. 27. Minnesota Statutes 2008, section 356.401, subdivision 3, is amended to read:<br/>
<a id="pl.129.11"></a><var>129.11</var>    Subd. 3. <b>Covered retirement plans.</b> The provisions of this section apply to the <br/>
<a id="pl.129.12"></a><var>129.12</var>following retirement plans:<br/>
<a id="pl.129.13"></a><var>129.13</var>(1) the legislators retirement plan, established by chapter 3A;<br/>
<a id="pl.129.14"></a><var>129.14</var>(2) the general state employees retirement plan of the Minnesota State Retirement <br/>
<a id="pl.129.15"></a><var>129.15</var>System, established by chapter 352;<br/>
<a id="pl.129.16"></a><var>129.16</var>(3) the correctional state employees retirement plan of the Minnesota State <br/>
<a id="pl.129.17"></a><var>129.17</var>Retirement System, established by chapter 352;<br/>
<a id="pl.129.18"></a><var>129.18</var>(4) the State Patrol retirement plan, established by chapter 352B;<br/>
<a id="pl.129.19"></a><var>129.19</var>(5) the elective state officers retirement plan, established by chapter 352C;<br/>
<a id="pl.129.20"></a><var>129.20</var>(6) the unclassified state employees retirement program, established by chapter <br/>
<a id="pl.129.21"></a><var>129.21</var>352D;<br/>
<a id="pl.129.22"></a><var>129.22</var>(7) the general employees retirement plan of the Public Employees Retirement <br/>
<a id="pl.129.23"></a><var>129.23</var>Association, established by chapter 353;<br/>
<a id="pl.129.24"></a><var>129.24</var>(8) the public employees police and fire plan of the Public Employees Retirement <br/>
<a id="pl.129.25"></a><var>129.25</var>Association, established by chapter 353;<br/>
<a id="pl.129.26"></a><var>129.26</var>(9) the public employees defined contribution plan, established by chapter 353D;<br/>
<a id="pl.129.27"></a><var>129.27</var>(10) the local government correctional service retirement plan of the Public <br/>
<a id="pl.129.28"></a><var>129.28</var>Employees Retirement Association, established by chapter 353E;<br/>
<a id="pl.129.29"></a><var>129.29</var>(11) the voluntary statewide lump-sum volunteer firefighter retirement plan, <br/>
<a id="pl.129.30"></a><var>129.30</var>established by chapter 353G;<br/>
<a id="pl.129.31"></a><var>129.31</var>(12) the Teachers Retirement Association, established by chapter 354;<br/>
<a id="pl.129.32"></a><var>129.32</var>(12) (13) the Duluth Teachers Retirement Fund Association, established by chapter <br/>
<a id="pl.129.33"></a><var>129.33</var>354A;<br/>
<a id="pl.129.34"></a><var>129.34</var>(13) the Minneapolis Teachers Retirement Fund Association, established by chapter <br/>
<a id="pl.129.35"></a><var>129.35</var>354A;<br/>
<a id="pl.130.1"></a><var>130.1</var>(14) the St. Paul Teachers Retirement Fund Association, established by chapter <br/>
<a id="pl.130.2"></a><var>130.2</var>354A;<br/>
<a id="pl.130.3"></a><var>130.3</var>(15) the individual retirement account plan, established by chapter 354B;<br/>
<a id="pl.130.4"></a><var>130.4</var>(16) the higher education supplemental retirement plan, established by chapter 354C;<br/>
<a id="pl.130.5"></a><var>130.5</var>(17) the Minneapolis Employees Retirement Fund, established by chapter 422A;<br/>
<a id="pl.130.6"></a><var>130.6</var>(18) the Minneapolis Police Relief Association, established by chapter 423B;<br/>
<a id="pl.130.7"></a><var>130.7</var>(19) the Minneapolis Firefighters Relief Association, established by chapter 423C; <br/>
<a id="pl.130.8"></a><var>130.8</var>and<br/>
<a id="pl.130.9"></a><var>130.9</var>(20) the judges retirement fund, established by chapter 490.<br/>
<br/>
<a id="bill.9.28.0"></a><a id="pl.130.10"></a><var>130.10</var>    Sec. 28. Minnesota Statutes 2008, section 356.96, subdivision 1, is amended to read:<br/>
<a id="pl.130.11"></a><var>130.11</var>    Subdivision 1. <b>Definitions.</b> (a) Unless the language or context clearly indicates that <br/>
<a id="pl.130.12"></a><var>130.12</var>a different meaning is intended, for the purpose of this section, the terms in paragraphs <br/>
<a id="pl.130.13"></a><var>130.13</var>(b) to (e) have the meanings given them.<br/>
<a id="pl.130.14"></a><var>130.14</var>    (b) "Chief administrative officer" means the executive director of a covered pension <br/>
<a id="pl.130.15"></a><var>130.15</var>plan or the executive director's designee or representative.<br/>
<a id="pl.130.16"></a><var>130.16</var>    (c) "Covered pension plan" means a plan enumerated in section 
         <statute_ref>356.20, <br/>
<a id="pl.130.17"></a><var>130.17</var>subdivision 
         </statute_ref>2, clauses (1) to (4), (10), and (13) to (15) (16), but does not mean the <br/>
<a id="pl.130.18"></a><var>130.18</var>deferred compensation plan administered under sections 
         <statute_ref>352.965</statute_ref> and 
         <statute_ref>352.97</statute_ref> or to the <br/>
<a id="pl.130.19"></a><var>130.19</var>postretirement health care savings plan administered under section 
         <statute_ref>352.98</statute_ref>.<br/>
<a id="pl.130.20"></a><var>130.20</var>    (d) "Governing board" means the Board of Trustees of the Public Employees <br/>
<a id="pl.130.21"></a><var>130.21</var>Retirement Association, the Board of Trustees of the Teachers Retirement Association, or <br/>
<a id="pl.130.22"></a><var>130.22</var>the Board of Directors of the Minnesota State Retirement System.<br/>
<a id="pl.130.23"></a><var>130.23</var>    (e) "Person" includes an active, retired, deferred, or nonvested inactive participant in <br/>
<a id="pl.130.24"></a><var>130.24</var>a covered pension plan or a beneficiary of a participant, or an individual who has applied <br/>
<a id="pl.130.25"></a><var>130.25</var>to be a participant or who is or may be a survivor of a participant, or a state agency or <br/>
<a id="pl.130.26"></a><var>130.26</var>other governmental unit that employs active participants in a covered pension plan.<br/>
<br/>
<a id="bill.9.29.0"></a><a id="pl.130.27"></a><var>130.27</var>    Sec. 29. Minnesota Statutes 2008, section 424A.10, subdivision 1, is amended to read:<br/>
<a id="pl.130.28"></a><var>130.28</var>    Subdivision 1. <b> Definitions.</b> For purposes of this section: <br/>
<a id="pl.130.29"></a><var>130.29</var>    (1) "qualified recipient" means an individual who receives a lump-sum distribution <br/>
<a id="pl.130.30"></a><var>130.30</var>of pension or retirement benefits from a firefighters' relief association or from the <br/>
<a id="pl.130.31"></a><var>130.31</var>voluntary statewide lump-sum volunteer firefighter retirement plan for service that the <br/>
<a id="pl.130.32"></a><var>130.32</var>individual has performed as a volunteer firefighter;<br/>
<a id="pl.131.1"></a><var>131.1</var>    (2) "survivor of a deceased active or deferred volunteer firefighter" means the legally <br/>
<a id="pl.131.2"></a><var>131.2</var>married spouse of a deceased volunteer firefighter, or, if none, the surviving minor child or <br/>
<a id="pl.131.3"></a><var>131.3</var>minor children of a deceased volunteer firefighter; <br/>
<a id="pl.131.4"></a><var>131.4</var>    (3) "active volunteer firefighter" means a person who regularly renders fire <br/>
<a id="pl.131.5"></a><var>131.5</var>suppression service for a municipal fire department or an independent nonprofit firefighting <br/>
<a id="pl.131.6"></a><var>131.6</var>corporation, who has met the statutory and other requirements for relief association <br/>
<a id="pl.131.7"></a><var>131.7</var>membership, and who has been a fully qualified member of the relief association or from <br/>
<a id="pl.131.8"></a><var>131.8</var>the voluntary statewide lump-sum volunteer firefighter retirement plan for at least one <br/>
<a id="pl.131.9"></a><var>131.9</var>month; and<br/>
<a id="pl.131.10"></a><var>131.10</var>    (4) "deferred volunteer firefighter" means a former active volunteer firefighter who <br/>
<a id="pl.131.11"></a><var>131.11</var>terminated active firefighting service, has sufficient service credit from the applicable <br/>
<a id="pl.131.12"></a><var>131.12</var>relief association or from the voluntary statewide lump-sum volunteer firefighter <br/>
<a id="pl.131.13"></a><var>131.13</var>retirement plan to be entitled to a service pension, but has not applied for or has not <br/>
<a id="pl.131.14"></a><var>131.14</var>received the service pension.<br/>
<br/>
<a id="bill.9.30.0"></a><a id="pl.131.15"></a><var>131.15</var>    Sec. 30. Minnesota Statutes 2008, section 424A.10, subdivision 2, is amended to read:<br/>
<a id="pl.131.16"></a><var>131.16</var>    Subd. 2. <b>Payment of supplemental benefit.</b> (a) Upon the payment by a <br/>
<a id="pl.131.17"></a><var>131.17</var>firefighters' relief association or by the voluntary statewide lump-sum volunteer firefighter <br/>
<a id="pl.131.18"></a><var>131.18</var>retirement plan of a lump-sum distribution to a qualified recipient, the association must <br/>
<a id="pl.131.19"></a><var>131.19</var>pay a supplemental benefit to the qualified recipient. Notwithstanding any law to the <br/>
<a id="pl.131.20"></a><var>131.20</var>contrary, the relief association must pay the supplemental benefit out of its special fund <br/>
<a id="pl.131.21"></a><var>131.21</var>and the voluntary statewide lump-sum volunteer firefighter retirement plan must pay <br/>
<a id="pl.131.22"></a><var>131.22</var>the supplemental benefit out of the voluntary statewide lump-sum volunteer firefighter <br/>
<a id="pl.131.23"></a><var>131.23</var>retirement plan. The amount of this benefit equals ten percent of the regular lump-sum <br/>
<a id="pl.131.24"></a><var>131.24</var>distribution that is paid on the basis of the recipient's service as a volunteer firefighter. <br/>
<a id="pl.131.25"></a><var>131.25</var>In no case may the amount of the supplemental benefit exceed $1,000. A supplemental <br/>
<a id="pl.131.26"></a><var>131.26</var>benefit under this paragraph may not be paid to a survivor of a deceased active or deferred <br/>
<a id="pl.131.27"></a><var>131.27</var>volunteer firefighter in that capacity.<br/>
<a id="pl.131.28"></a><var>131.28</var>    (b) Upon the payment by a relief association or the retirement plan of a lump-sum <br/>
<a id="pl.131.29"></a><var>131.29</var>survivor benefit or funeral benefit to a survivor of a deceased active volunteer firefighter <br/>
<a id="pl.131.30"></a><var>131.30</var>or of a deceased deferred volunteer firefighter, the association may pay a supplemental <br/>
<a id="pl.131.31"></a><var>131.31</var>survivor benefit to the survivor of the deceased active or deferred volunteer firefighter <br/>
<a id="pl.131.32"></a><var>131.32</var>from the special fund of the relief association if its articles of incorporation or bylaws so <br/>
<a id="pl.131.33"></a><var>131.33</var>provide and the retirement plan may pay a supplemental survivor benefit to the survivor of <br/>
<a id="pl.131.34"></a><var>131.34</var>the deceased active or deferred volunteer firefighter from the retirement fund if chapter <br/>
<a id="pl.132.1"></a><var>132.1</var>353G so provides. The amount of the supplemental survivor benefit is 20 percent of the <br/>
<a id="pl.132.2"></a><var>132.2</var>survivor benefit or funeral benefit, but not to exceed $2,000.<br/>
<a id="pl.132.3"></a><var>132.3</var>    (c) An individual may receive a supplemental benefit under paragraph (a) or under <br/>
<a id="pl.132.4"></a><var>132.4</var>paragraph (b), but not under both paragraphs with respect to one lump-sum volunteer <br/>
<a id="pl.132.5"></a><var>132.5</var>firefighter benefit.<br/>
<br/>
<a id="bill.9.31.0"></a><a id="pl.132.6"></a><var>132.6</var>    Sec. 31. Minnesota Statutes 2008, section 424A.10, subdivision 3, is amended to read:<br/>
<a id="pl.132.7"></a><var>132.7</var>    Subd. 3.  <b>State reimbursement.</b> (a) Each year, to be eligible for state reimbursement <br/>
<a id="pl.132.8"></a><var>132.8</var>of the amount of supplemental benefits paid under subdivision 2 during the preceding <br/>
<a id="pl.132.9"></a><var>132.9</var>calendar year, the relief association mustor the voluntary statewide lump-sum volunteer <br/>
<a id="pl.132.10"></a><var>132.10</var>firefighter retirement plan shall apply to the commissioner of revenue by February 15. <br/>
<a id="pl.132.11"></a><var>132.11</var>By March 15, the commissioner shall reimburse the relief association for the amount of <br/>
<a id="pl.132.12"></a><var>132.12</var>the supplemental benefits paid to qualified recipients and to survivors of deceased active <br/>
<a id="pl.132.13"></a><var>132.13</var>or deferred volunteer firefighters. <br/>
<a id="pl.132.14"></a><var>132.14</var>    (b) The commissioner of revenue shall prescribe the form of and supporting <br/>
<a id="pl.132.15"></a><var>132.15</var>information that must be supplied as part of the application for state reimbursement. <br/>
<a id="pl.132.16"></a><var>132.16</var>The commissioner of revenue shall reimburse the relief association by paying the <br/>
<a id="pl.132.17"></a><var>132.17</var>reimbursement amount to the treasurer of the municipality where the association is <br/>
<a id="pl.132.18"></a><var>132.18</var>located and shall reimburse the retirement plan by paying the reimbursement amount to <br/>
<a id="pl.132.19"></a><var>132.19</var>the executive director of the Public Employees Retirement Association. Within 30 days <br/>
<a id="pl.132.20"></a><var>132.20</var>after receipt, the municipal treasurer shall transmit the state reimbursement to the treasurer <br/>
<a id="pl.132.21"></a><var>132.21</var>of the association if the association has filed a financial report with the municipality. If <br/>
<a id="pl.132.22"></a><var>132.22</var>the relief association has not filed a financial report with the municipality, the municipal <br/>
<a id="pl.132.23"></a><var>132.23</var>treasurer shall delay transmission of the reimbursement payment to the association until <br/>
<a id="pl.132.24"></a><var>132.24</var>the complete financial report is filed. If the association has dissolved or has been removed <br/>
<a id="pl.132.25"></a><var>132.25</var>as a trustee of state aid, the treasurer shall deposit the money in a special account in the <br/>
<a id="pl.132.26"></a><var>132.26</var>municipal treasury, and the money may be disbursed only for the purposes and in the <br/>
<a id="pl.132.27"></a><var>132.27</var>manner provided in section 
         <statute_ref>424A.08</statute_ref>. When paid to the association, the reimbursement <br/>
<a id="pl.132.28"></a><var>132.28</var>payment must be deposited in the special fund of the relief association and when paid to <br/>
<a id="pl.132.29"></a><var>132.29</var>the retirement plan, the reimbursement payment must be deposited in the retirement <br/>
<a id="pl.132.30"></a><var>132.30</var>fund of the plan. <br/>
<a id="pl.132.31"></a><var>132.31</var>    (c) A sum sufficient to make the payments is appropriated from the general fund <br/>
<a id="pl.132.32"></a><var>132.32</var>to the commissioner of revenue. <br/>
<br/>
<a id="bill.9.32.0"></a><a id="pl.132.33"></a><var>132.33</var>    Sec. 32. <b>EFFECTIVE DATE.</b><br/>
<a id="pl.132.34"></a><var>132.34</var>Sections 1 to 31 are effective August 1, 2009.<br/>
<br/>
<a id="bill.10.0.0"></a>

<a id="bill.10.1.0"></a><a id="pl.133.3"></a><var>133.3</var>    Section 1. Minnesota Statutes 2008, section 69.031, subdivision 5, is amended to read:<br/>
<a id="pl.133.4"></a><var>133.4</var>    Subd. 5. <b>Deposit of state aid.</b> (a) The municipal treasurer shall, within 30 days <br/>
<a id="pl.133.5"></a><var>133.5</var>after receipt, transmit the fire state aid to the treasurer of the duly incorporated firefighters' <br/>
<a id="pl.133.6"></a><var>133.6</var>relief association if there is one organized and the association has filed a financial report <br/>
<a id="pl.133.7"></a><var>133.7</var>with the municipality. If the relief association has not filed a financial report with the <br/>
<a id="pl.133.8"></a><var>133.8</var>municipality, the municipal treasurer shall delay transmission of the fire state aid to the <br/>
<a id="pl.133.9"></a><var>133.9</var>relief association until the complete financial report is filed. If there is no relief association <br/>
<a id="pl.133.10"></a><var>133.10</var>organized, or if the association has dissolved, or has been removed as trustees of state aid, <br/>
<a id="pl.133.11"></a><var>133.11</var>then the treasurer of the municipality shall deposit the money in the municipal treasury <br/>
<a id="pl.133.12"></a><var>133.12</var>as provided for in section 
<statute_ref>424A.08</statute_ref> and the money may be disbursed only for the purposes <br/>
<a id="pl.133.13"></a><var>133.13</var>and in the manner set forth in that section 424A.08 or for the payment of the employer <br/>
<a id="pl.133.14"></a><var>133.14</var>contribution requirement with respect to firefighters covered by the public employees <br/>
<a id="pl.133.15"></a><var>133.15</var>police and fire retirement plan under section 353.65, subdivision 3.<br/>
<a id="pl.133.16"></a><var>133.16</var>(b) The municipal treasurer, upon receipt of the police state aid, shall disburse the <br/>
<a id="pl.133.17"></a><var>133.17</var>police state aid in the following manner:<br/>
<a id="pl.133.18"></a><var>133.18</var>(1) For a municipality in which a local police relief association exists and all peace <br/>
<a id="pl.133.19"></a><var>133.19</var>officers are members of the association, the total state aid must be transmitted to the <br/>
<a id="pl.133.20"></a><var>133.20</var>treasurer of the relief association within 30 days of the date of receipt, and the treasurer <br/>
<a id="pl.133.21"></a><var>133.21</var>of the relief association shall immediately deposit the total state aid in the special fund <br/>
<a id="pl.133.22"></a><var>133.22</var>of the relief association;<br/>
<a id="pl.133.23"></a><var>133.23</var>(2) For a municipality in which police retirement coverage is provided by the public <br/>
<a id="pl.133.24"></a><var>133.24</var>employees police and fire fund and all peace officers are members of the fund, including <br/>
<a id="pl.133.25"></a><var>133.25</var>municipalities covered by section 
         <statute_ref>353.665</statute_ref>, the total state aid must be applied toward the <br/>
<a id="pl.133.26"></a><var>133.26</var>municipality's employer contribution to the public employees police and fire fund under <br/>
<a id="pl.133.27"></a><var>133.27</var>sections 
         <statute_ref>353.65, subdivision 3</statute_ref>, and 
         <statute_ref>353.665, subdivision 8</statute_ref>, paragraph (b), if applicable; or<br/>
<a id="pl.133.28"></a><var>133.28</var>(3) For a municipality other than a city of the first class with a population of more <br/>
<a id="pl.133.29"></a><var>133.29</var>than 300,000 in which both a police relief association exists and police retirement <br/>
<a id="pl.133.30"></a><var>133.30</var>coverage is provided in part by the public employees police and fire fund, the municipality <br/>
<a id="pl.133.31"></a><var>133.31</var>may elect at its option to transmit the total state aid to the treasurer of the relief association <br/>
<a id="pl.133.32"></a><var>133.32</var>as provided in clause (1), to use the total state aid to apply toward the municipality's <br/>
<a id="pl.133.33"></a><var>133.33</var>employer contribution to the public employees police and fire fund subject to all the <br/>
<a id="pl.133.34"></a><var>133.34</var>provisions set forth in clause (2), or to allot the total state aid proportionately to be <br/>
<a id="pl.133.35"></a><var>133.35</var>transmitted to the police relief association as provided in this subdivision and to apply <br/>
<a id="pl.134.1"></a><var>134.1</var>toward the municipality's employer contribution to the public employees police and fire <br/>
<a id="pl.134.2"></a><var>134.2</var>fund subject to the provisions of clause (2) on the basis of the respective number of active <br/>
<a id="pl.134.3"></a><var>134.3</var>full-time peace officers, as defined in section 
         <statute_ref>69.011, subdivision 1</statute_ref>, clause (g).<br/>
<a id="pl.134.4"></a><var>134.4</var>For a city of the first class with a population of more than 300,000, in addition, the <br/>
<a id="pl.134.5"></a><var>134.5</var>city may elect to allot the appropriate portion of the total police state aid to apply toward <br/>
<a id="pl.134.6"></a><var>134.6</var>the employer contribution of the city to the public employees police and fire fund based <br/>
<a id="pl.134.7"></a><var>134.7</var>on the covered salary of police officers covered by the fund each payroll period and to <br/>
<a id="pl.134.8"></a><var>134.8</var>transmit the balance to the police relief association; or<br/>
<a id="pl.134.9"></a><var>134.9</var>(4) For a municipality in which police retirement coverage is provided in part by <br/>
<a id="pl.134.10"></a><var>134.10</var>the public employees police and fire fund and in part by a local police consolidation <br/>
<a id="pl.134.11"></a><var>134.11</var>account governed by chapter 353A and established before March 2, 1999, for which the <br/>
<a id="pl.134.12"></a><var>134.12</var>municipality declined merger under section 
         <statute_ref>353.665, subdivision 1</statute_ref>, or established after <br/>
<a id="pl.134.13"></a><var>134.13</var>March 1, 1999, the total police state aid must be applied towards the municipality's total <br/>
<a id="pl.134.14"></a><var>134.14</var>employer contribution to the public employees police and fire fund and to the local police <br/>
<a id="pl.134.15"></a><var>134.15</var>consolidation account under sections 
         <statute_ref>353.65, subdivision 3</statute_ref>, and 
         <statute_ref>353A.09, subdivision 5</statute_ref>.<br/>
<a id="pl.134.16"></a><var>134.16</var>(c) The county treasurer, upon receipt of the police state aid for the county, shall <br/>
<a id="pl.134.17"></a><var>134.17</var>apply the total state aid toward the county's employer contribution to the public employees <br/>
<a id="pl.134.18"></a><var>134.18</var>police and fire fund under section 
         <statute_ref>353.65, subdivision 3</statute_ref>.<br/>
<a id="pl.134.19"></a><var>134.19</var>(d) The designated Metropolitan Airports Commission official, upon receipt of the <br/>
<a id="pl.134.20"></a><var>134.20</var>police state aid for the Metropolitan Airports Commission, shall apply the total police <br/>
<a id="pl.134.21"></a><var>134.21</var>state aid first toward the commission's employer contribution for police officers to the <br/>
<a id="pl.134.22"></a><var>134.22</var>Minneapolis Employees Retirement Fund under section 
         <statute_ref>422A.101, subdivision 2a</statute_ref>, and, if <br/>
<a id="pl.134.23"></a><var>134.23</var>there is any amount of police state aid remaining, shall apply that remainder toward the <br/>
<a id="pl.134.24"></a><var>134.24</var>commission's employer contribution for police officers to the public employees police and <br/>
<a id="pl.134.25"></a><var>134.25</var>fire plan under section 
         <statute_ref>353.65, subdivision 3</statute_ref>.<br/>
<a id="pl.134.26"></a><var>134.26</var>(e) The police state aid apportioned to the Departments of Public Safety and Natural <br/>
<a id="pl.134.27"></a><var>134.27</var>Resources under section 
         <statute_ref>69.021, subdivision 7a</statute_ref>, is appropriated to the commissioner of <br/>
<a id="pl.134.28"></a><var>134.28</var>finance for transfer to the funds and accounts from which the salaries of peace officers <br/>
<a id="pl.134.29"></a><var>134.29</var>certified under section 
         <statute_ref>69.011, subdivision 2a</statute_ref>, are paid. The commissioner of revenue <br/>
<a id="pl.134.30"></a><var>134.30</var>shall certify to the commissioners of public safety, natural resources, and finance the <br/>
<a id="pl.134.31"></a><var>134.31</var>amounts to be transferred from the appropriation for police state aid. The commissioners <br/>
<a id="pl.134.32"></a><var>134.32</var>of public safety and natural resources shall certify to the commissioner of finance the <br/>
<a id="pl.134.33"></a><var>134.33</var>amounts to be credited to each of the funds and accounts from which the peace officers <br/>
<a id="pl.134.34"></a><var>134.34</var>employed by their respective departments are paid. Each commissioner must shall allocate <br/>
<a id="pl.134.35"></a><var>134.35</var>the police state aid first for employer contributions for employees funded from the general <br/>
<a id="pl.134.36"></a><var>134.36</var>fund and then for employer contributions for employees funded from other funds. For <br/>
<a id="pl.135.1"></a><var>135.1</var>peace officers whose salaries are paid from the general fund, the amounts transferred from <br/>
<a id="pl.135.2"></a><var>135.2</var>the appropriation for police state aid must be canceled to the general fund.<br/>
<a id="pl.135.3"></a><var>135.3</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2009.<br/>
<br/>
<a id="bill.10.2.0"></a><a id="pl.135.4"></a><var>135.4</var>    Sec. 2. Minnesota Statutes 2008, section 69.771, subdivision 3, is amended to read:<br/>
<a id="pl.135.5"></a><var>135.5</var>    Subd. 3. <b>Remedy for noncompliance; determination.</b> (a) A municipality in which <br/>
<a id="pl.135.6"></a><var>135.6</var>there exists a firefighters' relief association as specified in subdivision 1 which does not <br/>
<a id="pl.135.7"></a><var>135.7</var>comply with the applicable provisions of sections 
         <statute_ref>69.771</statute_ref> to 
         <statute_ref>69.776</statute_ref> or the provisions of <br/>
<a id="pl.135.8"></a><var>135.8</var>any applicable special law relating to the funding or financing of the association does <br/>
<a id="pl.135.9"></a><var>135.9</var>not qualify initially to receive, and is not entitled subsequently to retain, fire state aid <br/>
<a id="pl.135.10"></a><var>135.10</var>under sections 
         <statute_ref>69.011</statute_ref> to 
         <statute_ref>69.051</statute_ref> until the reason for the disqualification specified by the <br/>
<a id="pl.135.11"></a><var>135.11</var>state auditor is remedied, whereupon the municipality or relief association, if otherwise <br/>
<a id="pl.135.12"></a><var>135.12</var>qualified, is entitled to again receive fire state aid for the year occurring immediately <br/>
<a id="pl.135.13"></a><var>135.13</var>subsequent to the year in which the disqualification is remedied.<br/>
<a id="pl.135.14"></a><var>135.14</var>(b) The state auditor shall determine if a municipality to which a firefighters' relief <br/>
<a id="pl.135.15"></a><var>135.15</var>association is directly associated or a firefighters' relief association fails to comply with <br/>
<a id="pl.135.16"></a><var>135.16</var>the provisions of sections 
         <statute_ref>69.771</statute_ref> to 
         <statute_ref>69.776</statute_ref> or the funding or financing provisions of any <br/>
<a id="pl.135.17"></a><var>135.17</var>applicable special law based upon the information contained in the annual financial report <br/>
<a id="pl.135.18"></a><var>135.18</var>of the firefighters' relief association required under section 
         <statute_ref>69.051</statute_ref>, the actuarial valuation <br/>
<a id="pl.135.19"></a><var>135.19</var>of the relief association, if applicable, the relief association officers' financial requirements <br/>
<a id="pl.135.20"></a><var>135.20</var>of the relief association and minimum municipal obligation determination documentation <br/>
<a id="pl.135.21"></a><var>135.21</var>under section 
         <statute_ref>69.772, subdivisions 3 and 4</statute_ref>; 
         <statute_ref>69.773, subdivisions 4 and 5</statute_ref>; or 
         <statute_ref>69.774, <br/>
<a id="pl.135.22"></a><var>135.22</var>subdivision 2
         </statute_ref>, if requested to be filed by the state auditor, the applicable municipal or <br/>
<a id="pl.135.23"></a><var>135.23</var>nonprofit firefighting corporation budget, if requested to be filed by the state auditor, and <br/>
<a id="pl.135.24"></a><var>135.24</var>any other relevant documents or reports obtained by the state auditor.<br/>
<a id="pl.135.25"></a><var>135.25</var>(c) The municipality or nonprofit firefighting corporation and the associated relief <br/>
<a id="pl.135.26"></a><var>135.26</var>association are not eligible to receive or to retain fire state aid if:<br/>
<a id="pl.135.27"></a><var>135.27</var>(1) the relief association fails to prepare or to file the financial report or financial <br/>
<a id="pl.135.28"></a><var>135.28</var>statement under section 
         <statute_ref>69.051</statute_ref>;<br/>
<a id="pl.135.29"></a><var>135.29</var>(2) the relief association treasurer is not bonded in the manner and in the amount <br/>
<a id="pl.135.30"></a><var>135.30</var>required by section 
         <statute_ref>69.051, subdivision 2</statute_ref>;<br/>
<a id="pl.135.31"></a><var>135.31</var>(3) the relief association officers fail to determine or improperly determine the <br/>
<a id="pl.135.32"></a><var>135.32</var>accrued liability and the annual accruing liability of the relief association under section <br/>
<statute_ref><a id="pl.135.33"></a><var>135.33</var>69.772, subdivisions 2, 2a, and 3
         </statute_ref>, paragraph (c), clause (2), if applicable;<br/>
<a id="pl.135.34"></a><var>135.34</var>(4) if applicable, the relief association officers fail to obtain and file a required <br/>
<a id="pl.135.35"></a><var>135.35</var>actuarial valuation or the officers file an actuarial valuation that does not contain the <br/>
<a id="pl.136.1"></a><var>136.1</var>special fund actuarial liability calculated under the entry age normal actuarial cost <br/>
<a id="pl.136.2"></a><var>136.2</var>method, the special fund current assets, the special fund unfunded actuarial accrued <br/>
<a id="pl.136.3"></a><var>136.3</var>liability, the special fund normal cost under the entry age normal actuarial cost method, <br/>
<a id="pl.136.4"></a><var>136.4</var>the amortization requirement for the special fund unfunded actuarial accrued liability <br/>
<a id="pl.136.5"></a><var>136.5</var>by the applicable target date, a summary of the applicable benefit plan, a summary of <br/>
<a id="pl.136.6"></a><var>136.6</var>the membership of the relief association, a summary of the actuarial assumptions used <br/>
<a id="pl.136.7"></a><var>136.7</var>in preparing the valuation, and a signed statement by the actuary attesting to its results <br/>
<a id="pl.136.8"></a><var>136.8</var>and certifying to the qualifications of the actuary as an approved actuary under section <br/>
<statute_ref><a id="pl.136.9"></a><var>136.9</var>356.215, subdivision 1
         </statute_ref>, paragraph (c);<br/>
<a id="pl.136.10"></a><var>136.10</var>(5) the municipality failed to provide a municipal contribution, or the nonprofit <br/>
<a id="pl.136.11"></a><var>136.11</var>firefighting corporation failed to provide a corporate contribution, in the amount equal <br/>
<a id="pl.136.12"></a><var>136.12</var>to the minimum municipal obligation if the relief association is governed under section <br/>
<statute_ref><a id="pl.136.13"></a><var>136.13</var>69.772
         </statute_ref>, or the amount necessary, when added to the fire state aid actually received <br/>
<a id="pl.136.14"></a><var>136.14</var>in the plan year in question, to at least equal in total the calculated annual financial <br/>
<a id="pl.136.15"></a><var>136.15</var>requirements of the special fund of the relief association if the relief association is <br/>
<a id="pl.136.16"></a><var>136.16</var>governed under section 
         <statute_ref>69.773</statute_ref>, and, if the municipal or corporate contribution is deficient, <br/>
<a id="pl.136.17"></a><var>136.17</var>the municipality failed to include the minimum municipal obligation certified under <br/>
<a id="pl.136.18"></a><var>136.18</var>section 
         <statute_ref>69.772, subdivision 3</statute_ref>, or 
         <statute_ref>69.773, subdivision 5</statute_ref>, in its budget and tax levy or the <br/>
<a id="pl.136.19"></a><var>136.19</var>nonprofit firefighting corporation failed to include the minimum corporate obligation <br/>
<a id="pl.136.20"></a><var>136.20</var>certified under section 
         <statute_ref>69.774, subdivision 2</statute_ref>, in the corporate budget;<br/>
<a id="pl.136.21"></a><var>136.21</var>(6) the defined benefit relief association did not receive municipal ratification for <br/>
<a id="pl.136.22"></a><var>136.22</var>the most recent plan amendment when municipal ratification was required under section <br/>
<statute_ref><a id="pl.136.23"></a><var>136.23</var>69.772, subdivision 6
         </statute_ref>; 
         <statute_ref>69.773, subdivision 6</statute_ref>; or 
         <statute_ref>424A.02, subdivision 10</statute_ref>;<br/>
<a id="pl.136.24"></a><var>136.24</var>(7) the relief association invested special fund assets in an investment security <br/>
<a id="pl.136.25"></a><var>136.25</var>that is not authorized under section 
         <statute_ref>69.775</statute_ref>;<br/>
<a id="pl.136.26"></a><var>136.26</var>(8) the relief association had an administrative expense that is not authorized under <br/>
<a id="pl.136.27"></a><var>136.27</var>section 
         <statute_ref>69.80</statute_ref> or 
         <statute_ref>424A.05, subdivision 3</statute_ref>, or the municipality had an expenditure that <br/>
<a id="pl.136.28"></a><var>136.28</var>is not authorized under section 
         <statute_ref>424A.08</statute_ref>;<br/>
<a id="pl.136.29"></a><var>136.29</var>(9) the relief association officers fail to provide a complete and accurate public <br/>
<a id="pl.136.30"></a><var>136.30</var>pension plan investment portfolio and performance disclosure under section 
         <statute_ref>356.219</statute_ref>;<br/>
<a id="pl.136.31"></a><var>136.31</var>(10) the relief association fails to obtain the acknowledgment from a broker of the <br/>
<a id="pl.136.32"></a><var>136.32</var>statement of investment restrictions under section 
         <statute_ref>356A.06, subdivision 8b</statute_ref>;<br/>
<a id="pl.136.33"></a><var>136.33</var>(11) the relief association officers permitted to occur a prohibited transaction under <br/>
<a id="pl.136.34"></a><var>136.34</var>section 
         <statute_ref>356A.06, subdivision 9</statute_ref>, or 
         <statute_ref>424A.001 424A.04, subdivision 7</statute_ref> 2a, or failed to <br/>
<a id="pl.136.35"></a><var>136.35</var>undertake correction of a prohibited transaction that did occur; or<br/>
<a id="pl.137.1"></a><var>137.1</var>(12) the relief association pays a defined benefit service pension in an amount <br/>
<a id="pl.137.2"></a><var>137.2</var>that is in excess of the applicable service pension maximum under section 
         <statute_ref>424A.02, <br/>
<a id="pl.137.3"></a><var>137.3</var>subdivision 3
         </statute_ref>.<br/>
<a id="pl.137.4"></a><var>137.4</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2009.<br/>
<br/>
<a id="bill.10.3.0"></a><a id="pl.137.5"></a><var>137.5</var>    Sec. 3. Minnesota Statutes 2008, section 69.772, subdivision 4, is amended to read:<br/>
<a id="pl.137.6"></a><var>137.6</var>    Subd. 4. <b>Certification of financial requirements and minimum municipal </b><br/>
<a id="pl.137.7"></a><var>137.7</var><b>obligation; levy.</b> (a) The officers of the relief association shall certify the financial <br/>
<a id="pl.137.8"></a><var>137.8</var>requirements of the special fund of the relief association and the minimum obligation of <br/>
<a id="pl.137.9"></a><var>137.9</var>the municipality with respect to the special fund of the relief association as determined <br/>
<a id="pl.137.10"></a><var>137.10</var>under subdivision 3 to the governing body of the municipality on or before August 1 of <br/>
<a id="pl.137.11"></a><var>137.11</var>each year. The financial requirements of the relief association and the minimum municipal <br/>
<a id="pl.137.12"></a><var>137.12</var>obligation must be included in the financial report or financial statement under section <br/>
<statute_ref><a id="pl.137.13"></a><var>137.13</var>69.051
         </statute_ref>. The schedule forms related to the determination of the financial requirements <br/>
<a id="pl.137.14"></a><var>137.14</var>must be filed with the state auditor by March 31, annually, if the relief association is <br/>
<a id="pl.137.15"></a><var>137.15</var>required to file a financial statement under section 69.051, subdivision 1a, or by June 30, <br/>
<a id="pl.137.16"></a><var>137.16</var>annually, if the relief association is required to file a financial report and audit under <br/>
<a id="pl.137.17"></a><var>137.17</var>section 69.051, subdivision 1.<br/>
<a id="pl.137.18"></a><var>137.18</var>(b) The municipality shall provide for at least the minimum obligation of the <br/>
<a id="pl.137.19"></a><var>137.19</var>municipality with respect to the special fund of the relief association by tax levy or from <br/>
<a id="pl.137.20"></a><var>137.20</var>any other source of public revenue.<br/>
<a id="pl.137.21"></a><var>137.21</var>(c) The municipality may levy taxes for the payment of the minimum municipal <br/>
<a id="pl.137.22"></a><var>137.22</var>obligation without any limitation as to rate or amount and irrespective of any limitations <br/>
<a id="pl.137.23"></a><var>137.23</var>imposed by other provisions of law upon the rate or amount of taxation until the balance <br/>
<a id="pl.137.24"></a><var>137.24</var>of the special fund or any fund of the relief association has attained a specified level. In <br/>
<a id="pl.137.25"></a><var>137.25</var>addition, any taxes levied under this section must not cause the amount or rate of any other <br/>
<a id="pl.137.26"></a><var>137.26</var>taxes levied in that year or to be levied in a subsequent year by the municipality which are <br/>
<a id="pl.137.27"></a><var>137.27</var>subject to a limitation as to rate or amount to be reduced.<br/>
<a id="pl.137.28"></a><var>137.28</var>(d) If the municipality does not include the full amount of the minimum municipal <br/>
<a id="pl.137.29"></a><var>137.29</var>obligations in its levy for any year, the officers of the relief association shall certify that <br/>
<a id="pl.137.30"></a><var>137.30</var>amount to the county auditor, who shall spread a levy in the amount of the certified <br/>
<a id="pl.137.31"></a><var>137.31</var>minimum municipal obligation on the taxable property of the municipality.<br/>
<a id="pl.137.32"></a><var>137.32</var>(e) If the state auditor determines that a municipal contribution actually made in a <br/>
<a id="pl.137.33"></a><var>137.33</var>plan year was insufficient under section 
         <statute_ref>69.771, subdivision 3</statute_ref>, paragraph (c), clause (5), <br/>
<a id="pl.137.34"></a><var>137.34</var>the state auditor may request a copy of the certifications under this subdivision from the <br/>
<a id="pl.137.35"></a><var>137.35</var>relief association or from the city. The relief association or the city, whichever applies, <br/>
<a id="pl.138.1"></a><var>138.1</var>must provide the certifications within 14 days of the date of the request from the state <br/>
<a id="pl.138.2"></a><var>138.2</var>auditor.<br/>
<a id="pl.138.3"></a><var>138.3</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2009.<br/>
<br/>
<a id="bill.10.4.0"></a><a id="pl.138.4"></a><var>138.4</var>    Sec. 4. Minnesota Statutes 2008, section 69.772, subdivision 6, is amended to read:<br/>
<a id="pl.138.5"></a><var>138.5</var>    Subd. 6. <b>Municipal ratification for plan amendments.</b> If the special fund of the <br/>
<a id="pl.138.6"></a><var>138.6</var>relief association does not have a surplus over full funding pursuant to subdivision 3, <br/>
<a id="pl.138.7"></a><var>138.7</var>clause (2), subclause (e), or if the municipality is required to provide financial support <br/>
<a id="pl.138.8"></a><var>138.8</var>to the special fund of the relief association pursuant to this section, the adoption of or <br/>
<a id="pl.138.9"></a><var>138.9</var>any amendment to the articles of incorporation or bylaws of a relief association which <br/>
<a id="pl.138.10"></a><var>138.10</var>increases or otherwise affects the retirement coverage provided by or the service pensions <br/>
<a id="pl.138.11"></a><var>138.11</var>or retirement benefits payable from the special fund of any relief association to which this <br/>
<a id="pl.138.12"></a><var>138.12</var>section applies shall is not be effective until it is ratified by the governing body of the <br/>
<a id="pl.138.13"></a><var>138.13</var>municipality in which the relief association is located and the officers of a relief association <br/>
<a id="pl.138.14"></a><var>138.14</var>shall not seek municipal ratification prior to preparing and certifying an estimate of <br/>
<a id="pl.138.15"></a><var>138.15</var>the expected increase in the accrued liability and annual accruing liability of the relief <br/>
<a id="pl.138.16"></a><var>138.16</var>association attributable to the amendment. If the special fund of the relief association has <br/>
<a id="pl.138.17"></a><var>138.17</var>a surplus over full funding pursuant to subdivision 3, clause (2), subclause (e), and if the <br/>
<a id="pl.138.18"></a><var>138.18</var>municipality is not required to provide financial support to the special fund of the relief <br/>
<a id="pl.138.19"></a><var>138.19</var>association pursuant to this section, the relief association may adopt or amend its articles <br/>
<a id="pl.138.20"></a><var>138.20</var>of incorporation or bylaws which increase or otherwise affect the retirement coverage <br/>
<a id="pl.138.21"></a><var>138.21</var>provided by or the service pensions or retirement benefits payable from the special fund <br/>
<a id="pl.138.22"></a><var>138.22</var>of the relief association which shall be are effective without municipal ratification so <br/>
<a id="pl.138.23"></a><var>138.23</var>long as this does not cause the amount of the resulting increase in the accrued liability <br/>
<a id="pl.138.24"></a><var>138.24</var>of the special fund of the relief association to exceed 90 percent of the amount of the <br/>
<a id="pl.138.25"></a><var>138.25</var>prior surplus over full funding reported in the prior year and this does not result in the <br/>
<a id="pl.138.26"></a><var>138.26</var>financial requirements of the special fund of the relief association exceeding the expected <br/>
<a id="pl.138.27"></a><var>138.27</var>amount of the future fire state aid to be received by the relief association as determined <br/>
<a id="pl.138.28"></a><var>138.28</var>by the board of trustees following the preparation of an estimate of the expected increase <br/>
<a id="pl.138.29"></a><var>138.29</var>in the accrued liability and annual accruing liability of the relief association attributable <br/>
<a id="pl.138.30"></a><var>138.30</var>to the change. If a relief association adopts or amends its articles of incorporation or <br/>
<a id="pl.138.31"></a><var>138.31</var>bylaws without municipal ratification pursuant to this subdivision, and, subsequent to <br/>
<a id="pl.138.32"></a><var>138.32</var>the amendment or adoption, the financial requirements of the special fund of the relief <br/>
<a id="pl.138.33"></a><var>138.33</var>association pursuant to this section are such so as to require financial support from the <br/>
<a id="pl.138.34"></a><var>138.34</var>municipality, the provision which was implemented without municipal ratification shall <br/>
<a id="pl.138.35"></a><var>138.35</var>is no longer be effective without municipal ratification and any service pensions or <br/>
<a id="pl.139.1"></a><var>139.1</var>retirement benefits payable after that date shall may be paid only in accordance with the <br/>
<a id="pl.139.2"></a><var>139.2</var>articles of incorporation or bylaws as amended or adopted with municipal ratification.<br/>
<a id="pl.139.3"></a><var>139.3</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2009.<br/>
<br/>
<a id="bill.10.5.0"></a><a id="pl.139.4"></a><var>139.4</var>    Sec. 5. Minnesota Statutes 2008, section 69.773, subdivision 6, is amended to read:<br/>
<a id="pl.139.5"></a><var>139.5</var>    Subd. 6. <b>Municipal ratification for plan amendments.</b> If the special fund of the <br/>
<a id="pl.139.6"></a><var>139.6</var>relief association does not have a surplus over full funding pursuant to subdivision 4, or if <br/>
<a id="pl.139.7"></a><var>139.7</var>the municipality is required to provide financial support to the special fund of the relief <br/>
<a id="pl.139.8"></a><var>139.8</var>association pursuant to this section, the adoption of or any amendment to the articles of <br/>
<a id="pl.139.9"></a><var>139.9</var>incorporation or bylaws of a relief association which increases or otherwise affects the <br/>
<a id="pl.139.10"></a><var>139.10</var>retirement coverage provided by or the service pensions or retirement benefits payable <br/>
<a id="pl.139.11"></a><var>139.11</var>from the special fund of any relief association to which this section applies shall is not <br/>
<a id="pl.139.12"></a><var>139.12</var>be effective until it is ratified by the governing body of the municipality in which the <br/>
<a id="pl.139.13"></a><var>139.13</var>relief association is located. If the special fund of the relief association has a surplus over <br/>
<a id="pl.139.14"></a><var>139.14</var>full funding pursuant to subdivision 4, and if the municipality is not required to provide <br/>
<a id="pl.139.15"></a><var>139.15</var>financial support to the special fund of the relief association pursuant to this section, <br/>
<a id="pl.139.16"></a><var>139.16</var>the relief association may adopt or amend its articles of incorporation or bylaws which <br/>
<a id="pl.139.17"></a><var>139.17</var>increase or otherwise affect the retirement coverage provided by or the service pensions or <br/>
<a id="pl.139.18"></a><var>139.18</var>retirement benefits payable from the special fund of the relief association which shall be <br/>
<a id="pl.139.19"></a><var>139.19</var>are effective without municipal ratification so long as this does not cause the amount of <br/>
<a id="pl.139.20"></a><var>139.20</var>the resulting increase in the accrued liability of the special fund of the relief association to <br/>
<a id="pl.139.21"></a><var>139.21</var>exceed 90 percent of the amount of the prior surplus over full funding reported in the prior <br/>
<a id="pl.139.22"></a><var>139.22</var>year and this does not result in the financial requirements of the special fund of the relief <br/>
<a id="pl.139.23"></a><var>139.23</var>association exceeding the expected amount of the future fire state aid to be received by the <br/>
<a id="pl.139.24"></a><var>139.24</var>relief association as determined by the board of trustees following the preparation of an <br/>
<a id="pl.139.25"></a><var>139.25</var>updated actuarial valuation including the proposed change or an estimate of the expected <br/>
<a id="pl.139.26"></a><var>139.26</var>actuarial impact of the proposed change prepared by the actuary of the relief association. <br/>
<a id="pl.139.27"></a><var>139.27</var>If a relief association adopts or amends its articles of incorporation or bylaws without <br/>
<a id="pl.139.28"></a><var>139.28</var>municipal ratification pursuant to this subdivision, and, subsequent to the amendment or <br/>
<a id="pl.139.29"></a><var>139.29</var>adoption, the financial requirements of the special fund of the relief association pursuant to <br/>
<a id="pl.139.30"></a><var>139.30</var>this section are such so as to require financial support from the municipality, the provision <br/>
<a id="pl.139.31"></a><var>139.31</var>which was implemented without municipal ratification shall is no longer be effective <br/>
<a id="pl.139.32"></a><var>139.32</var>without municipal ratification and any service pensions or retirement benefits payable <br/>
<a id="pl.139.33"></a><var>139.33</var>after that date shall be may paid only in accordance with the articles of incorporation or <br/>
<a id="pl.139.34"></a><var>139.34</var>bylaws as amended or adopted with municipal ratification.<br/>
<a id="pl.140.1"></a><var>140.1</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2009.<br/>
<br/>
<a id="bill.10.6.0"></a><a id="pl.140.2"></a><var>140.2</var>    Sec. 6. Minnesota Statutes 2008, section 356.219, subdivision 3, is amended to read:<br/>
<a id="pl.140.3"></a><var>140.3</var>    Subd. 3. <b>Content of reports.</b> (a) The report required by subdivision 1 must include <br/>
<a id="pl.140.4"></a><var>140.4</var>a written statement of the investment policy. Following that initial report, subsequent <br/>
<a id="pl.140.5"></a><var>140.5</var>reports must include investment policy changes and the effective date of each policy <br/>
<a id="pl.140.6"></a><var>140.6</var>change rather than a complete statement of investment policy, unless the state auditor <br/>
<a id="pl.140.7"></a><var>140.7</var>requests submission of a complete current statement. The report must also include the <br/>
<a id="pl.140.8"></a><var>140.8</var>information required by the following paragraphs, as applicable.<br/>
<a id="pl.140.9"></a><var>140.9</var>(b) If, after four years of reporting under this paragraph, the total portfolio time <br/>
<a id="pl.140.10"></a><var>140.10</var>weighted rate of return, net of all investment related costs and fees, provided by the public <br/>
<a id="pl.140.11"></a><var>140.11</var>pension plan differs by no more than 0.1 percent from the comparable return for the plan <br/>
<a id="pl.140.12"></a><var>140.12</var>calculated by the Office of the State Auditor, and if a public pension plan has a total <br/>
<a id="pl.140.13"></a><var>140.13</var>market value of $25,000,000 or more as of the beginning of the calendar year, and if the <br/>
<a id="pl.140.14"></a><var>140.14</var>public pension plan's annual audit is performed by the state auditor or by the legislative <br/>
<a id="pl.140.15"></a><var>140.15</var>auditor, the report required by subdivision 1 must include the market value of the total <br/>
<a id="pl.140.16"></a><var>140.16</var>portfolio and the market value of each asset class included in the pension fund as of the <br/>
<a id="pl.140.17"></a><var>140.17</var>beginning of the calendar year and as of the end of the calendar year. At the discretion of <br/>
<a id="pl.140.18"></a><var>140.18</var>the state auditor, the public pension plan may be required to submit the market value of the <br/>
<a id="pl.140.19"></a><var>140.19</var>total portfolio and the market value of each investment account, investment portfolio, or <br/>
<a id="pl.140.20"></a><var>140.20</var>asset class included in the pension fund for each month, and the amount and date of each <br/>
<a id="pl.140.21"></a><var>140.21</var>injection and withdrawal to the total portfolio and to each investment account, investment <br/>
<a id="pl.140.22"></a><var>140.22</var>portfolio, or asset class. If the market value of a public pension plan's fund drops below <br/>
<a id="pl.140.23"></a><var>140.23</var>$25,000,000 in a subsequent year, it must continue reporting under this paragraph for any <br/>
<a id="pl.140.24"></a><var>140.24</var>subsequent year in which the public pension plan is not fully invested as specified in <br/>
<a id="pl.140.25"></a><var>140.25</var>subdivision 1, paragraph (b), except that if the public pension plan's annual audit is not <br/>
<a id="pl.140.26"></a><var>140.26</var>performed by the state auditor or legislative auditor, paragraph (c) applies.<br/>
<a id="pl.140.27"></a><var>140.27</var>(c) If paragraph (b) would apply if the annual audit were provided by the state <br/>
<a id="pl.140.28"></a><var>140.28</var>auditor or legislative auditor, the report required by subdivision 1 must include the market <br/>
<a id="pl.140.29"></a><var>140.29</var>value of the total portfolio and the market value of each asset class included in the pension <br/>
<a id="pl.140.30"></a><var>140.30</var>fund as of the beginning of the calendar year and for each month, and the amount and date <br/>
<a id="pl.140.31"></a><var>140.31</var>of each injection and withdrawal to the total portfolio and to each investment account, <br/>
<a id="pl.140.32"></a><var>140.32</var>investment portfolio, or asset class.<br/>
<a id="pl.140.33"></a><var>140.33</var>(d) For public pension plans to which paragraph (b) or (c) applies, the report required <br/>
<a id="pl.140.34"></a><var>140.34</var>by subdivision 1 must also include a calculation of the total time-weighted rate of return <br/>
<a id="pl.140.35"></a><var>140.35</var>available from index-matching investments assuming the asset class performance targets <br/>
<a id="pl.141.1"></a><var>141.1</var>and target asset mix indicated in the written statement of investment policy. The provided <br/>
<a id="pl.141.2"></a><var>141.2</var>information must include a description of indices used in the analyses and an explanation <br/>
<a id="pl.141.3"></a><var>141.3</var>of why those indices are appropriate. This paragraph does not apply to any fully invested <br/>
<a id="pl.141.4"></a><var>141.4</var>plan, as defined by subdivision 1, paragraph (b). Reporting by the State Board of <br/>
<a id="pl.141.5"></a><var>141.5</var>Investment under this paragraph is limited to information on the Minnesota public pension <br/>
<a id="pl.141.6"></a><var>141.6</var>plans required to be invested by the State Board of Investment under section 
         <statute_ref>11A.23</statute_ref>. <br/>
<a id="pl.141.7"></a><var>141.7</var>(e) If a public pension plan has a total market value of less than $25,000,000 as of <br/>
<a id="pl.141.8"></a><var>141.8</var>the beginning of the calendar year and was never required to file under paragraph (b) or <br/>
<a id="pl.141.9"></a><var>141.9</var>(c), the report required by subdivision 1 must include the amount and date of each total <br/>
<a id="pl.141.10"></a><var>141.10</var>portfolio injection and withdrawal. In addition, the report must include the market value <br/>
<a id="pl.141.11"></a><var>141.11</var>of the total portfolio as of the beginning of the calendar year and for each quarter.<br/>
<a id="pl.141.12"></a><var>141.12</var>(f) Any public pension plan reporting under paragraph (b) or (c) must include <br/>
<a id="pl.141.13"></a><var>141.13</var>computed time-weighted rates of return with the report, in addition to all other required <br/>
<a id="pl.141.14"></a><var>141.14</var>information, as applicable. The chief administrative officer of the public pension plan <br/>
<a id="pl.141.15"></a><var>141.15</var>submitting the returns must certify, on a form prescribed by the state auditor, that the <br/>
<a id="pl.141.16"></a><var>141.16</var>returns have been computed by the pension plan's investment performance consultant or <br/>
<a id="pl.141.17"></a><var>141.17</var>custodial bank. The chief administrative officer of the public pension plan submitting the <br/>
<a id="pl.141.18"></a><var>141.18</var>returns also must certify that the returns are net of all costs and fees, including investment <br/>
<a id="pl.141.19"></a><var>141.19</var>management fees, and that the procedures used to compute the returns are consistent <br/>
<a id="pl.141.20"></a><var>141.20</var>with Bank Administration Institute studies of investment performance measurement <br/>
<a id="pl.141.21"></a><var>141.21</var>and presentation standards set by the Certified Financial Analyst CFA Institute. If the <br/>
<a id="pl.141.22"></a><var>141.22</var>certifications required under this paragraph are not provided, the reporting requirements of <br/>
<a id="pl.141.23"></a><var>141.23</var>paragraph (c) apply.<br/>
<a id="pl.141.24"></a><var>141.24</var>(g) For public pension plans reporting under paragraph (e), the public pension plan <br/>
<a id="pl.141.25"></a><var>141.25</var>must retain supporting information specifying the date and amount of each injection and <br/>
<a id="pl.141.26"></a><var>141.26</var>withdrawal to each investment account and investment portfolio. The public pension plan <br/>
<a id="pl.141.27"></a><var>141.27</var>must also retain the market value of each investment account and investment portfolio at <br/>
<a id="pl.141.28"></a><var>141.28</var>the beginning of the calendar year and for each quarter. Information that is required to be <br/>
<a id="pl.141.29"></a><var>141.29</var>collected and retained for any given year or years under this paragraph must be submitted <br/>
<a id="pl.141.30"></a><var>141.30</var>to the Office of the State Auditor if the Office of the State Auditor requests in writing that <br/>
<a id="pl.141.31"></a><var>141.31</var>the information be submitted by a public pension plan or plans, or be submitted by the <br/>
<a id="pl.141.32"></a><var>141.32</var>State Board of Investment for any plan or plans for which the State Board of Investment is <br/>
<a id="pl.141.33"></a><var>141.33</var>the investment authority under this section. If the state auditor requests information under <br/>
<a id="pl.141.34"></a><var>141.34</var>this subdivision, and the public plan fails to comply, the pension plan is subject to penalties <br/>
<a id="pl.141.35"></a><var>141.35</var>under subdivision 5, unless penalties are waived by the state auditor under that subdivision.<br/>
<a id="pl.141.36"></a><var>141.36</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2009.<br/>
<br/>
<a id="bill.10.7.0"></a><a id="pl.142.1"></a><var>142.1</var>    Sec. 7. <b>[420.20] PROHIBITION OF SERVICE BY MINORS AS VOLUNTEER </b><br/>
<a id="pl.142.2"></a><var>142.2</var><b>FIREFIGHTERS.</b><br/>
<a id="pl.142.3"></a><var>142.3</var>It is unlawful for any municipality or independent nonprofit firefighting corporation <br/>
<a id="pl.142.4"></a><var>142.4</var>to employ a minor to serve as a firefighter or to permit a minor to serve in any capacity <br/>
<a id="pl.142.5"></a><var>142.5</var>performing any firefighting duties with a fire department, except for members of a youth, <br/>
<a id="pl.142.6"></a><var>142.6</var>civic, or educational organization or program who participate with uninterrupted adult <br/>
<a id="pl.142.7"></a><var>142.7</var>supervision, as allowed by federal law and by section 181A.04. Such organizations or <br/>
<a id="pl.142.8"></a><var>142.8</var>programs include, but are not limited to, Boy Scout Explorer programs or firefighting <br/>
<a id="pl.142.9"></a><var>142.9</var>degree programs.<br/>
<a id="pl.142.10"></a><var>142.10</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2009.<br/>
<br/>
<a id="bill.10.8.0"></a><a id="pl.142.11"></a><var>142.11</var>    Sec. 8. Minnesota Statutes 2008, section 424A.001, subdivision 1, is amended to read:<br/>
<a id="pl.142.12"></a><var>142.12</var>    Subdivision 1. <b>Terms defined.</b> Unless the context clearly indicates otherwise, as <br/>
<a id="pl.142.13"></a><var>142.13</var>used in this chapter, the terms defined in this section have the meanings given.<br/>
<a id="pl.142.14"></a><var>142.14</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2009.<br/>
<br/>
<a id="bill.10.9.0"></a><a id="pl.142.15"></a><var>142.15</var>    Sec. 9. Minnesota Statutes 2008, section 424A.001, subdivision 1a, is amended to read:<br/>
<a id="pl.142.16"></a><var>142.16</var>    Subd. 1a. <b>Ancillary benefit.</b> "Ancillary benefit" means a benefit payable from the <br/>
<a id="pl.142.17"></a><var>142.17</var>special fund of the relief association other than a service pension that is permitted by law <br/>
<a id="pl.142.18"></a><var>142.18</var>and that is provided for in the relief association bylaws.<br/>
<a id="pl.142.19"></a><var>142.19</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2009.<br/>
<br/>
<a id="bill.10.10.0"></a><a id="pl.142.20"></a><var>142.20</var>    Sec. 10. Minnesota Statutes 2008, section 424A.001, is amended by adding a <br/>
<a id="pl.142.21"></a><var>142.21</var>subdivision to read:<br/>
<a id="pl.142.22"></a><var>142.22</var>    Subd. 1b. <b>Defined benefit relief association.</b> "Defined benefit relief association" <br/>
<a id="pl.142.23"></a><var>142.23</var>means a volunteer firefighters' relief association that provides a lump-sum service pension, <br/>
<a id="pl.142.24"></a><var>142.24</var>provides a monthly benefit service pension, or provides a lump-sum service pension as an <br/>
<a id="pl.142.25"></a><var>142.25</var>alternative to the monthly benefit service pension.<br/>
<a id="pl.142.26"></a><var>142.26</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2009.<br/>
<br/>
<a id="bill.10.11.0"></a><a id="pl.142.27"></a><var>142.27</var>    Sec. 11. Minnesota Statutes 2008, section 424A.001, is amended by adding a <br/>
<a id="pl.142.28"></a><var>142.28</var>subdivision to read:<br/>
<a id="pl.142.29"></a><var>142.29</var>    Subd. 1c. <b>Defined contribution relief association.</b> "Defined contribution relief <br/>
<a id="pl.142.30"></a><var>142.30</var>association" means a volunteer firefighters' relief association that provides a service <br/>
<a id="pl.143.1"></a><var>143.1</var>pension based solely on an individual account balance rather than a specified annual <br/>
<a id="pl.143.2"></a><var>143.2</var>lump-sum or monthly benefit service pension amount.<br/>
<a id="pl.143.3"></a><var>143.3</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2009.<br/>
<br/>
<a id="bill.10.12.0"></a><a id="pl.143.4"></a><var>143.4</var>    Sec. 12. Minnesota Statutes 2008, section 424A.001, subdivision 2, is amended to read:<br/>
<a id="pl.143.5"></a><var>143.5</var>    Subd. 2. <b>Fire department.</b> "Fire department" includes a municipal fire department <br/>
<a id="pl.143.6"></a><var>143.6</var>and or an independent nonprofit firefighting corporation.<br/>
<a id="pl.143.7"></a><var>143.7</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2009.<br/>
<br/>
<a id="bill.10.13.0"></a><a id="pl.143.8"></a><var>143.8</var>    Sec. 13. Minnesota Statutes 2008, section 424A.001, subdivision 3, is amended to read:<br/>
<a id="pl.143.9"></a><var>143.9</var>    Subd. 3. <b>Municipality.</b> "Municipality" means a municipality which has <br/>
<a id="pl.143.10"></a><var>143.10</var>established a fire department with which the relief association is directly associated, or <br/>
<a id="pl.143.11"></a><var>143.11</var>the municipalities which have entered into a contract with the independent nonprofit <br/>
<a id="pl.143.12"></a><var>143.12</var>firefighting corporation of which the relief association is a subsidiary.<br/>
<a id="pl.143.13"></a><var>143.13</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2009.<br/>
<br/>
<a id="bill.10.14.0"></a><a id="pl.143.14"></a><var>143.14</var>    Sec. 14. Minnesota Statutes 2008, section 424A.001, subdivision 4, is amended to read:<br/>
<a id="pl.143.15"></a><var>143.15</var>    Subd. 4. <b>Relief association.</b> "Relief association" means (a) <br/>
<a id="pl.143.16"></a><var>143.16</var>(1) a volunteer firefighters' relief association or a volunteer firefighters' division or <br/>
<a id="pl.143.17"></a><var>143.17</var>account of a partially salaried and partially volunteer firefighters' relief association that is <br/>
<a id="pl.143.18"></a><var>143.18</var>organized and incorporated under chapter 317A and any laws of the state, is governed by <br/>
<a id="pl.143.19"></a><var>143.19</var>this chapter and chapter 69, and is directly associated with a fire department established by <br/>
<a id="pl.143.20"></a><var>143.20</var>municipal ordinance; or <br/>
<a id="pl.143.21"></a><var>143.21</var>(b) (2) any separate separately incorporated volunteer firefighters' relief association <br/>
<a id="pl.143.22"></a><var>143.22</var>that is subsidiary to and providing that provides service pension and retirement benefit <br/>
<a id="pl.143.23"></a><var>143.23</var>coverage for members of an independent nonprofit firefighting corporation that is <br/>
<a id="pl.143.24"></a><var>143.24</var>organized under the provisions of chapter 317A, is governed by this chapter, and operating <br/>
<a id="pl.143.25"></a><var>143.25</var>operates exclusively for firefighting purposes. A relief association is a governmental entity <br/>
<a id="pl.143.26"></a><var>143.26</var>that receives and manages public money to provide retirement benefits for individuals <br/>
<a id="pl.143.27"></a><var>143.27</var>providing the governmental services of firefighting and emergency first response.<br/>
<a id="pl.143.28"></a><var>143.28</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2009.<br/>
<br/>
<a id="bill.10.15.0"></a><a id="pl.143.29"></a><var>143.29</var>    Sec. 15. Minnesota Statutes 2008, section 424A.001, subdivision 5, is amended to read:<br/>
<a id="pl.144.1"></a><var>144.1</var>    Subd. 5. <b>Special fund.</b> "Special fund" means the special fund of a volunteer <br/>
<a id="pl.144.2"></a><var>144.2</var>firefighters' relief association or the account for volunteer firefighters within the special <br/>
<a id="pl.144.3"></a><var>144.3</var>fund of a partially salaried and partially volunteer firefighters' relief association.<br/>
<a id="pl.144.4"></a><var>144.4</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2009.<br/>
<br/>
<a id="bill.10.16.0"></a><a id="pl.144.5"></a><var>144.5</var>    Sec. 16. Minnesota Statutes 2008, section 424A.001, subdivision 6, is amended to read:<br/>
<a id="pl.144.6"></a><var>144.6</var>    Subd. 6. <b>Surviving spouse.</b> For purposes of this chapter, and the governing bylaws <br/>
<a id="pl.144.7"></a><var>144.7</var>of any governing a relief association to which this chapter applies, the term "surviving <br/>
<a id="pl.144.8"></a><var>144.8</var>spouse" means the spouse of a deceased member who was legally married to the member <br/>
<a id="pl.144.9"></a><var>144.9</var>at the time of the member's death.<br/>
<a id="pl.144.10"></a><var>144.10</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2009.<br/>
<br/>
<a id="bill.10.17.0"></a><a id="pl.144.11"></a><var>144.11</var>    Sec. 17. Minnesota Statutes 2008, section 424A.001, subdivision 8, is amended to read:<br/>
<a id="pl.144.12"></a><var>144.12</var>    Subd. 8. <b>Firefighting service.</b> "Firefighting service," if the applicable municipality <br/>
<a id="pl.144.13"></a><var>144.13</var>approves for a fire department that is a municipal department, or if the applicable <br/>
<a id="pl.144.14"></a><var>144.14</var>contracting municipality or municipalities approve for a fire department that is an <br/>
<a id="pl.144.15"></a><var>144.15</var>independent nonprofit firefighting corporation, includes fire department service rendered <br/>
<a id="pl.144.16"></a><var>144.16</var>by fire prevention personnel.<br/>
<a id="pl.144.17"></a><var>144.17</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2009.<br/>
<br/>
<a id="bill.10.18.0"></a><a id="pl.144.18"></a><var>144.18</var>    Sec. 18. Minnesota Statutes 2008, section 424A.001, subdivision 9, is amended to read:<br/>
<a id="pl.144.19"></a><var>144.19</var>    Subd. 9. <b>Separate from active service.</b> "Separate from active service" means <br/>
<a id="pl.144.20"></a><var>144.20</var>to that a firefighter permanently cease ceases to perform fire suppression duties with <br/>
<a id="pl.144.21"></a><var>144.21</var>a particular volunteer fire department, to permanently cease ceases to perform fire <br/>
<a id="pl.144.22"></a><var>144.22</var>prevention duties, to permanently cease ceases to supervise fire suppression duties, and to <br/>
<a id="pl.144.23"></a><var>144.23</var>permanently cease ceases to supervise fire prevention duties.<br/>
<a id="pl.144.24"></a><var>144.24</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2009.<br/>
<br/>
<a id="bill.10.19.0"></a><a id="pl.144.25"></a><var>144.25</var>    Sec. 19. Minnesota Statutes 2008, section 424A.001, subdivision 10, is amended to <br/>
<a id="pl.144.26"></a><var>144.26</var>read:<br/>
<a id="pl.144.27"></a><var>144.27</var>    Subd. 10. <b>Volunteer firefighter.</b> "Volunteer firefighter" means a person who either:<br/>
<a id="pl.144.28"></a><var>144.28</var>(1) was a member of the applicable fire department or the independent nonprofit <br/>
<a id="pl.144.29"></a><var>144.29</var>firefighting corporation and a member of the relief association on July 1, 2006; or<br/>
<a id="pl.145.1"></a><var>145.1</var>(2) became a member of the applicable fire department or the independent nonprofit <br/>
<a id="pl.145.2"></a><var>145.2</var>firefighting corporation and is eligible for membership in the applicable relief association <br/>
<a id="pl.145.3"></a><var>145.3</var>after June 30, 2006, and<br/>
<a id="pl.145.4"></a><var>145.4</var>(i) is engaged in providing emergency response services or delivering fire education <br/>
<a id="pl.145.5"></a><var>145.5</var>or prevention services as a member of a municipal fire department, a joint powers entity <br/>
<a id="pl.145.6"></a><var>145.6</var>fire department, or an independent nonprofit firefighting corporation;<br/>
<a id="pl.145.7"></a><var>145.7</var>(ii) is trained in or is qualified to provide fire suppression duties or to provide fire <br/>
<a id="pl.145.8"></a><var>145.8</var>prevention duties under subdivision 8; and<br/>
<a id="pl.145.9"></a><var>145.9</var>(iii) meets any other minimum firefighter and service standards established by the <br/>
<a id="pl.145.10"></a><var>145.10</var>fire department or the independent nonprofit firefighting corporation or specified in the <br/>
<a id="pl.145.11"></a><var>145.11</var>articles of incorporation or bylaws of the relief association.<br/>
<a id="pl.145.12"></a><var>145.12</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2009.<br/>
<br/>
<a id="bill.10.20.0"></a><a id="pl.145.13"></a><var>145.13</var>    Sec. 20. <b>[424A.002] AUTHORIZATION OF NEW OR CONTINUING </b><br/>
<a id="pl.145.14"></a><var>145.14</var><b>VOLUNTEER FIREFIGHTERS' RELIEF ASSOCIATIONS.</b><br/>
<a id="pl.145.15"></a><var>145.15</var>    Subdivision 1. <b>Authorization.</b> A municipal fire department or an independent <br/>
<a id="pl.145.16"></a><var>145.16</var>nonprofit firefighting corporation, with approval by the applicable municipality or <br/>
<a id="pl.145.17"></a><var>145.17</var>municipalities, may establish a new volunteer firefighters' relief association or may retain <br/>
<a id="pl.145.18"></a><var>145.18</var>an existing volunteer firefighters' relief association.<br/>
<a id="pl.145.19"></a><var>145.19</var>    Subd. 2. <b>Defined benefit or defined contribution relief association.</b> The articles <br/>
<a id="pl.145.20"></a><var>145.20</var>of incorporation or the bylaws of the volunteer firefighters' relief association must specify <br/>
<a id="pl.145.21"></a><var>145.21</var>that the relief association is either a defined benefit relief association subject to sections <br/>
<a id="pl.145.22"></a><var>145.22</var>69.771 to 69.774, 424A.015, and 424A.02 or is a defined contribution relief association <br/>
<a id="pl.145.23"></a><var>145.23</var>subject to sections 424A.015 and 424A.016.<br/>
<a id="pl.145.24"></a><var>145.24</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2009.<br/>
<br/>
<a id="bill.10.21.0"></a><a id="pl.145.25"></a><var>145.25</var>    Sec. 21. Minnesota Statutes 2008, section 424A.01, is amended to read:<br/>
<a id="pl.145.26"></a><var>145.26</var><b>424A.01 MEMBERSHIP IN A VOLUNTEER FIREFIGHTERS' RELIEF </b><br/>
<a id="pl.145.27"></a><var>145.27</var><b>ASSOCIATION.</b><br/>
<a id="pl.145.28"></a><var>145.28</var>    Subdivision 1. <b>Minors.</b> It is unlawful for any (a) No volunteer firefighters' relief <br/>
<a id="pl.145.29"></a><var>145.29</var>association associated with a municipality or an independent nonprofit firefighting <br/>
<a id="pl.145.30"></a><var>145.30</var>corporation to employ may include as a relief association member a minor serving as <br/>
<a id="pl.145.31"></a><var>145.31</var>a volunteer firefighter or to permit a minor to serve in any capacity performing any <br/>
<a id="pl.145.32"></a><var>145.32</var>firefighting duties with a volunteer fire department, except for members of a youth, <br/>
<a id="pl.145.33"></a><var>145.33</var>civic, or educational organization or program who participate with uninterrupted adult <br/>
<a id="pl.146.1"></a><var>146.1</var>supervision, as allowed by federal law and by section 181A.04. Such organizations or <br/>
<a id="pl.146.2"></a><var>146.2</var>programs include, but are not limited to, Boy Scout Explorer programs or firefighting <br/>
<a id="pl.146.3"></a><var>146.3</var>degree programs.<br/>
<a id="pl.146.4"></a><var>146.4</var>(b) No volunteer firefighters' relief association associated with a municipality or an <br/>
<a id="pl.146.5"></a><var>146.5</var>independent nonprofit firefighting corporation may include as a relief association member <br/>
<a id="pl.146.6"></a><var>146.6</var>a minor serving as a volunteer firefighter.<br/>
<a id="pl.146.7"></a><var>146.7</var>    Subd. 2. <b>Status of substitute volunteer firefighters.</b> No person who is serving as a <br/>
<a id="pl.146.8"></a><var>146.8</var>substitute volunteer firefighter shall be deemed may be considered to be a firefighter for <br/>
<a id="pl.146.9"></a><var>146.9</var>purposes of chapter 69 or this chapter nor shall be and no substitute volunteer firefighter is <br/>
<a id="pl.146.10"></a><var>146.10</var>authorized to be a member of any volunteer firefighters' relief association governed by <br/>
<a id="pl.146.11"></a><var>146.11</var>chapter 69 or this chapter.<br/>
<a id="pl.146.12"></a><var>146.12</var>    Subd. 3. <b>Status of nonmember volunteer firefighters.</b> No person who is serving <br/>
<a id="pl.146.13"></a><var>146.13</var>as a firefighter in a fire department but who is not a member of the applicable firefighters' <br/>
<a id="pl.146.14"></a><var>146.14</var>relief association shall be is entitled to any service pension or ancillary benefits from <br/>
<a id="pl.146.15"></a><var>146.15</var>the relief association.<br/>
<a id="pl.146.16"></a><var>146.16</var>    Subd. 4. <b>Exclusion of persons constituting an unwarranted health risk.</b> The <br/>
<a id="pl.146.17"></a><var>146.17</var>board of trustees of every relief association may exclude from membership in the relief <br/>
<a id="pl.146.18"></a><var>146.18</var>association all applicants who, due to some medically determinable physical or mental <br/>
<a id="pl.146.19"></a><var>146.19</var>impairment or condition, would is determined to constitute a predictable and unwarranted <br/>
<a id="pl.146.20"></a><var>146.20</var>risk of imposing liability for an ancillary benefit at any age earlier than the minimum <br/>
<a id="pl.146.21"></a><var>146.21</var>age specified for receipt of a service pension. Notwithstanding any provision of section <br/>
<statute_ref><a id="pl.146.22"></a><var>146.22</var>363A.25
         </statute_ref>, it shall be is a good and valid defense to a complaint or action brought under <br/>
<a id="pl.146.23"></a><var>146.23</var>chapter 363A that the board of trustees of the relief association made a good faith <br/>
<a id="pl.146.24"></a><var>146.24</var>determination that the applicant suffers from an impairment or condition constituting a <br/>
<a id="pl.146.25"></a><var>146.25</var>predictable and unwarranted risk for the relief association if the determination was made <br/>
<a id="pl.146.26"></a><var>146.26</var>following consideration of: (a) (1) the person's medical history; and (b) (2) the report of <br/>
<a id="pl.146.27"></a><var>146.27</var>the physician completing a physical examination of the applicant completed undertaken at <br/>
<a id="pl.146.28"></a><var>146.28</var>the expense of the relief association.<br/>
<a id="pl.146.29"></a><var>146.29</var>    Subd. 5. <b>Fire prevention personnel.</b> (a) If the fire department is a municipal <br/>
<a id="pl.146.30"></a><var>146.30</var>department and the applicable municipality approves, or if the fire department is an <br/>
<a id="pl.146.31"></a><var>146.31</var>independent nonprofit firefighting corporation and the contracting municipality or <br/>
<a id="pl.146.32"></a><var>146.32</var>municipalities approve, the fire department may employ or otherwise utilize the services <br/>
<a id="pl.146.33"></a><var>146.33</var>of persons as volunteer firefighters to perform fire prevention duties and to supervise <br/>
<a id="pl.146.34"></a><var>146.34</var>fire prevention activities.<br/>
<a id="pl.146.35"></a><var>146.35</var>(b) Personnel serving in fire prevention positions are eligible to be members of <br/>
<a id="pl.146.36"></a><var>146.36</var>the applicable volunteer firefighter relief association and to qualify for service pension <br/>
<a id="pl.147.1"></a><var>147.1</var>or other benefit coverage of the relief association on the same basis as fire department <br/>
<a id="pl.147.2"></a><var>147.2</var>personnel who perform fire suppression duties.<br/>
<a id="pl.147.3"></a><var>147.3</var>(c) Personnel serving in fire prevention positions also are eligible to receive any <br/>
<a id="pl.147.4"></a><var>147.4</var>other benefits under the applicable law or practice for services on the same basis as <br/>
<a id="pl.147.5"></a><var>147.5</var>personnel who are employed to perform fire suppression duties.<br/>
<a id="pl.147.6"></a><var>147.6</var>    Subd. 6. <b>Return to active firefighting after break in service.</b> (a) If a former active <br/>
<a id="pl.147.7"></a><var>147.7</var>firefighter who has ceased to perform or supervise fire suppression and fire prevention <br/>
<a id="pl.147.8"></a><var>147.8</var>duties for at least 60 days resumes performing active firefighting with the fire department <br/>
<a id="pl.147.9"></a><var>147.9</var>associated with the relief association, if the bylaws of the relief association so permit, the <br/>
<a id="pl.147.10"></a><var>147.10</var>person may again become an active member of the relief association.<br/>
<a id="pl.147.11"></a><var>147.11</var>(b) A firefighter who returns to active relief association membership under paragraph <br/>
<a id="pl.147.12"></a><var>147.12</var>(a) may qualify for the receipt of a service pension from the relief association for the <br/>
<a id="pl.147.13"></a><var>147.13</var>resumption service period if the firefighter meets a minimum period of resumption service <br/>
<a id="pl.147.14"></a><var>147.14</var>specified in the relief association bylaws.<br/>
<a id="pl.147.15"></a><var>147.15</var>(c) A firefighter who returns to active lump-sum relief association membership and <br/>
<a id="pl.147.16"></a><var>147.16</var>who qualifies for a service pension under paragraph (b) must have, upon a subsequent <br/>
<a id="pl.147.17"></a><var>147.17</var>cessation of duties, any service pension for the resumption service period calculated as <br/>
<a id="pl.147.18"></a><var>147.18</var>a separate benefit. If a lump-sum service pension had been paid to the firefighter upon <br/>
<a id="pl.147.19"></a><var>147.19</var>the firefighter's previous cessation of duties, a second lump-sum service pension for the <br/>
<a id="pl.147.20"></a><var>147.20</var>resumption service period must be calculated to apply the service pension amount in effect <br/>
<a id="pl.147.21"></a><var>147.21</var>on the date of the firefighter's termination of the resumption service for all years of the <br/>
<a id="pl.147.22"></a><var>147.22</var>resumption service. No firefighter may be paid a service pension twice for the same period <br/>
<a id="pl.147.23"></a><var>147.23</var>of service. If a lump-sum service pension had not been paid to the firefighter upon the <br/>
<a id="pl.147.24"></a><var>147.24</var>firefighter's previous cessation of duties and the firefighter meets the minimum service <br/>
<a id="pl.147.25"></a><var>147.25</var>requirement of section 424A.02, subdivision 2, a service pension must be calculated to <br/>
<a id="pl.147.26"></a><var>147.26</var>apply the service pension amount in effect on the date of the firefighter's termination of the <br/>
<a id="pl.147.27"></a><var>147.27</var>resumption service for all years of service credit.<br/>
<a id="pl.147.28"></a><var>147.28</var>(d) A firefighter who had not been paid a lump-sum service pension returns to active <br/>
<a id="pl.147.29"></a><var>147.29</var>relief association membership under paragraph (a), who does not qualify for a service <br/>
<a id="pl.147.30"></a><var>147.30</var>pension under paragraph (b), but who does meet the minimum service requirement of <br/>
<a id="pl.147.31"></a><var>147.31</var>section 424A.02, subdivision 2, based on the firefighter's previous years of active service, <br/>
<a id="pl.147.32"></a><var>147.32</var>must have, upon a subsequent cessation of duties, a service pension calculated for the <br/>
<a id="pl.147.33"></a><var>147.33</var>previous years of service based on the service pension amount in effect on the date of the <br/>
<a id="pl.147.34"></a><var>147.34</var>firefighter's termination of the resumption service, or, if the bylaws so provide, based on the <br/>
<a id="pl.147.35"></a><var>147.35</var>service pension amount in effect on the date of the firefighter's previous cessation of duties.<br/>
<a id="pl.148.1"></a><var>148.1</var>(e) If a firefighter receiving a monthly benefit service pension returns to active <br/>
<a id="pl.148.2"></a><var>148.2</var>monthly benefit relief association membership under paragraph (a), any monthly benefit <br/>
<a id="pl.148.3"></a><var>148.3</var>service pension payable to the firefighter is suspended as of the first day of the month next <br/>
<a id="pl.148.4"></a><var>148.4</var>following the date on which the firefighter returns to active membership. If the firefighter <br/>
<a id="pl.148.5"></a><var>148.5</var>was receiving a monthly benefit service pension, and qualifies for a service pension under <br/>
<a id="pl.148.6"></a><var>148.6</var>paragraph (b), the firefighter is entitled to an additional monthly benefit service pension <br/>
<a id="pl.148.7"></a><var>148.7</var>upon a subsequent cessation of duties calculated based on the resumption service credit <br/>
<a id="pl.148.8"></a><var>148.8</var>and the service pension accrual amount in effect on the date of the termination of the <br/>
<a id="pl.148.9"></a><var>148.9</var>resumption service. The suspended initial service pension resumes as of the first of <br/>
<a id="pl.148.10"></a><var>148.10</var>the month next following the termination of the resumption service. If the firefighter <br/>
<a id="pl.148.11"></a><var>148.11</var>was not receiving a monthly benefit service pension and meets the minimum service <br/>
<a id="pl.148.12"></a><var>148.12</var>requirement of section 424A.02, subdivision 2, a service pension must be calculated to <br/>
<a id="pl.148.13"></a><var>148.13</var>apply the service pension amount  in effect on the date of the firefighter's termination of the <br/>
<a id="pl.148.14"></a><var>148.14</var>resumption service for all years of service credit.<br/>
<a id="pl.148.15"></a><var>148.15</var>(f) A firefighter who was not receiving a monthly benefit service pension returns <br/>
<a id="pl.148.16"></a><var>148.16</var>to active relief association membership under paragraph (a), who does not qualify for a <br/>
<a id="pl.148.17"></a><var>148.17</var>service pension under paragraph (b), but who does meet the minimum service requirement <br/>
<a id="pl.148.18"></a><var>148.18</var>of section 424A.02, subdivision 2, based on the firefighter's previous years of active <br/>
<a id="pl.148.19"></a><var>148.19</var>service, must have, upon a subsequent cessation of duties, a service pension calculated for <br/>
<a id="pl.148.20"></a><var>148.20</var>the previous years of service based on the service pension amount in effect on the date <br/>
<a id="pl.148.21"></a><var>148.21</var>of the firefighter's termination of the resumption service, or, if the bylaws so provide, <br/>
<a id="pl.148.22"></a><var>148.22</var>based on the service pension amount in effect on the date of the firefighter's previous <br/>
<a id="pl.148.23"></a><var>148.23</var>cessation of duties.<br/>
<a id="pl.148.24"></a><var>148.24</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2009.<br/>
<br/>
<a id="bill.10.22.0"></a><a id="pl.148.25"></a><var>148.25</var>    Sec. 22. <b>[424A.015] GENERALLY APPLICABLE VOLUNTEER </b><br/>
<a id="pl.148.26"></a><var>148.26</var><b>FIREFIGHTERS' RELIEF ASSOCIATION PENSION PLAN REGULATION.</b><br/>
<a id="pl.148.27"></a><var>148.27</var>    Subdivision 1. <b>Separation from active service; exception.</b> (a) No service pension <br/>
<a id="pl.148.28"></a><var>148.28</var>is payable to a person while the person remains an active member of the respective fire <br/>
<a id="pl.148.29"></a><var>148.29</var>department, and a person who is receiving a service pension is not entitled to receive any <br/>
<a id="pl.148.30"></a><var>148.30</var>other benefits from the special fund of the relief association.<br/>
<a id="pl.148.31"></a><var>148.31</var>(b) No relief association as defined in section 424A.001, subdivision 4, may pay a <br/>
<a id="pl.148.32"></a><var>148.32</var>service pension or disability benefit to a former member of the relief association if that <br/>
<a id="pl.148.33"></a><var>148.33</var>person has not separated from active service with the fire department to which the relief <br/>
<a id="pl.148.34"></a><var>148.34</var>association is directly associated, unless: <br/>
<a id="pl.149.1"></a><var>149.1</var>(1) the person is employed subsequent to retirement by the municipality or the <br/>
<a id="pl.149.2"></a><var>149.2</var>independent nonprofit firefighting corporation, whichever applies, to perform duties within <br/>
<a id="pl.149.3"></a><var>149.3</var>the municipal fire department or corporation on a full-time basis;<br/>
<a id="pl.149.4"></a><var>149.4</var>(2) the governing body of the municipality or of the corporation has filed its <br/>
<a id="pl.149.5"></a><var>149.5</var>determination with the board of trustees of the relief association that the person's <br/>
<a id="pl.149.6"></a><var>149.6</var>experience with and service to the fire department in that person's full-time capacity <br/>
<a id="pl.149.7"></a><var>149.7</var>would be difficult to replace; and<br/>
<a id="pl.149.8"></a><var>149.8</var>(3) the bylaws of the relief association were amended to provide for the payment of <br/>
<a id="pl.149.9"></a><var>149.9</var>a service pension or disability benefit for such full-time employees.<br/>
<a id="pl.149.10"></a><var>149.10</var>    Subd. 2. <b>No assignment or garnishment.</b> A service pension or ancillary benefits <br/>
<a id="pl.149.11"></a><var>149.11</var>paid or payable from the special fund of a relief association to any person receiving or <br/>
<a id="pl.149.12"></a><var>149.12</var>entitled to receive a service pension or ancillary benefits is not subject to garnishment, <br/>
<a id="pl.149.13"></a><var>149.13</var>judgment, execution, or other legal process, except as provided in section 518.58, 518.581, <br/>
<a id="pl.149.14"></a><var>149.14</var>or 518A.53. No person entitled to a service pension or ancillary benefits from the special <br/>
<a id="pl.149.15"></a><var>149.15</var>fund of a relief association may assign any service pension or ancillary benefit payments, <br/>
<a id="pl.149.16"></a><var>149.16</var>and the association does not have the authority to recognize any assignment or pay over <br/>
<a id="pl.149.17"></a><var>149.17</var>any sum which has been assigned.<br/>
<a id="pl.149.18"></a><var>149.18</var>    Subd. 3. <b>Purchase of annuity contract.</b> A relief association that provides a service <br/>
<a id="pl.149.19"></a><var>149.19</var>pension in a single payment, if the governing articles of incorporation or bylaws so <br/>
<a id="pl.149.20"></a><var>149.20</var>provide, may purchase an annuity contract on behalf of a retiring member in an amount <br/>
<a id="pl.149.21"></a><var>149.21</var>equal to the service pension otherwise payable at the request of the person and in place of <br/>
<a id="pl.149.22"></a><var>149.22</var>a direct payment to the person. The annuity contract must be purchased from an insurance <br/>
<a id="pl.149.23"></a><var>149.23</var>carrier licensed to do business in this state.<br/>
<a id="pl.149.24"></a><var>149.24</var>    Subd. 4. <b>Transfer to individual retirement account.</b> A relief association that is a <br/>
<a id="pl.149.25"></a><var>149.25</var>qualified pension plan under section 401(a) of the Internal Revenue Code, as amended, <br/>
<a id="pl.149.26"></a><var>149.26</var>and that provides a single payment service pension, at the written request of the applicable <br/>
<a id="pl.149.27"></a><var>149.27</var>retiring member or, following the death of the active member, at the written request of the <br/>
<a id="pl.149.28"></a><var>149.28</var>deceased member's surviving spouse, may directly transfer on an institution-to-institution <br/>
<a id="pl.149.29"></a><var>149.29</var>basis the eligible member's lump-sum pension or the death or survivor benefit attributable <br/>
<a id="pl.149.30"></a><var>149.30</var>to the member, whichever applies, to the requesting person's individual retirement account <br/>
<a id="pl.149.31"></a><var>149.31</var>under section 408(a) of the Internal Revenue Code, as amended.<br/>
<a id="pl.149.32"></a><var>149.32</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2009.<br/>
<br/>
<a id="bill.10.23.0"></a><a id="pl.149.33"></a><var>149.33</var>    Sec. 23. <b>[424A.016] DEFINED CONTRIBUTION VOLUNTEER </b><br/>
<a id="pl.149.34"></a><var>149.34</var><b>FIREFIGHTERS' RELIEF ASSOCIATION SPECIFIC REGULATION.</b><br/>
<a id="pl.150.1"></a><var>150.1</var>    Subdivision 1. <b>Defined contribution relief association authorization.</b> If the <br/>
<a id="pl.150.2"></a><var>150.2</var>articles of incorporation or the bylaws governing the volunteer firefighters' relief <br/>
<a id="pl.150.3"></a><var>150.3</var>association so provide exclusively, the relief association may pay a defined contribution <br/>
<a id="pl.150.4"></a><var>150.4</var>lump-sum service pension instead of a defined benefit service pension governed by section <br/>
<a id="pl.150.5"></a><var>150.5</var>424A.02.<br/>
<a id="pl.150.6"></a><var>150.6</var>    Subd. 2. <b>Defined contribution service pension eligibility.</b> (a) A relief association, <br/>
<a id="pl.150.7"></a><var>150.7</var>when its articles of incorporation or bylaws so provide, may pay out of the assets of its <br/>
<a id="pl.150.8"></a><var>150.8</var>special fund a defined contribution service pension to each of its members who:<br/>
<a id="pl.150.9"></a><var>150.9</var>(1) separates from active service with the fire department;<br/>
<a id="pl.150.10"></a><var>150.10</var>(2) reaches age 50;<br/>
<a id="pl.150.11"></a><var>150.11</var>(3) completes at least five years of active service as an active member of the <br/>
<a id="pl.150.12"></a><var>150.12</var>municipal fire department to which the relief association is associated;<br/>
<a id="pl.150.13"></a><var>150.13</var>(4) completes at least five years of active membership with the relief association <br/>
<a id="pl.150.14"></a><var>150.14</var>before separation from active service; and<br/>
<a id="pl.150.15"></a><var>150.15</var>(5) complies with any additional conditions as to age, service, and membership that <br/>
<a id="pl.150.16"></a><var>150.16</var>are prescribed by the bylaws of the relief association.<br/>
<a id="pl.150.17"></a><var>150.17</var>(b) In the case of a member who has completed at least five years of active service as <br/>
<a id="pl.150.18"></a><var>150.18</var>an active member of the fire department to which the relief association is associated on <br/>
<a id="pl.150.19"></a><var>150.19</var>the date that the relief association is established and incorporated, the requirement that <br/>
<a id="pl.150.20"></a><var>150.20</var>the member complete at least five years of active membership with the relief association <br/>
<a id="pl.150.21"></a><var>150.21</var>before separation from active service may be waived by the board of trustees of the relief <br/>
<a id="pl.150.22"></a><var>150.22</var>association if the member completes at least five years of inactive membership with the <br/>
<a id="pl.150.23"></a><var>150.23</var>relief association before the date of the payment of the service pension. During the period <br/>
<a id="pl.150.24"></a><var>150.24</var>of inactive membership, the member is not entitled to receive any disability benefit <br/>
<a id="pl.150.25"></a><var>150.25</var>coverage, is not entitled to receive additional individual account allocation of fire state <br/>
<a id="pl.150.26"></a><var>150.26</var>aid or municipal contribution towards a service pension, and is considered to have the <br/>
<a id="pl.150.27"></a><var>150.27</var>status of a person entitled to a deferred service pension.<br/>
<a id="pl.150.28"></a><var>150.28</var>(c) The service pension earned by a volunteer under this chapter and the articles <br/>
<a id="pl.150.29"></a><var>150.29</var>of incorporation and bylaws of the relief association may be paid whether or not the <br/>
<a id="pl.150.30"></a><var>150.30</var>municipality or nonprofit firefighting corporation to which the relief association is <br/>
<a id="pl.150.31"></a><var>150.31</var>associated qualifies for the receipt of fire state aid under chapter 69.<br/>
<a id="pl.150.32"></a><var>150.32</var>    Subd. 3. <b>Reduced vesting schedule.</b> If the articles of incorporation or bylaws of a <br/>
<a id="pl.150.33"></a><var>150.33</var>defined contribution relief association so provide, a relief association may pay a reduced <br/>
<a id="pl.150.34"></a><var>150.34</var>service pension not to exceed the nonforfeitable percentage of the account balance to a <br/>
<a id="pl.150.35"></a><var>150.35</var>retiring member who has completed fewer than 20 years of service. The reduced service <br/>
<a id="pl.150.36"></a><var>150.36</var>pension may be paid when the retiring member meets the minimum age and service <br/>
<a id="pl.151.1"></a><var>151.1</var>requirements of subdivision 2. The nonforfeitable percentage of pension amounts are <br/>
<a id="pl.151.2"></a><var>151.2</var>as follows:<br/>
<table>
<col width="50px"/>
<col width="10"/>
<col width="10"/>
<col width="20"/>
<col width="25"/>
<tr>
<td><a id="pl.151.3"></a><var>151.3</var><br/>
<a id="pl.151.4"></a><var>151.4</var><br/>
</td>
<td></td>
<td colspan="2" valign="top">Completed Years of Service<br/>
</td>
<td align="center" valign="top">Nonforfeitable Percentage of <br/>
Pension Amount<br/>
</td>
</tr>
<tr>
<td><a id="pl.151.5"></a><var>151.5</var><br/>
</td>
<td></td>
<td align="right">5<br/>
</td>
<td></td>
<td align="center">40 percent<br/>
</td>
</tr>
<tr>
<td><a id="pl.151.6"></a><var>151.6</var><br/>
</td>
<td></td>
<td align="right">6<br/>
</td>
<td></td>
<td align="center">52 percent<br/>
</td>
</tr>
<tr>
<td><a id="pl.151.7"></a><var>151.7</var><br/>
</td>
<td></td>
<td align="right">7<br/>
</td>
<td></td>
<td align="center">64 percent<br/>
</td>
</tr>
<tr>
<td><a id="pl.151.8"></a><var>151.8</var><br/>
</td>
<td></td>
<td align="right">8<br/>
</td>
<td></td>
<td align="center">76 percent<br/>
</td>
</tr>
<tr>
<td><a id="pl.151.9"></a><var>151.9</var><br/>
</td>
<td></td>
<td align="right">9<br/>
</td>
<td></td>
<td align="center">88 percent<br/>
</td>
</tr>
<tr>
<td><a id="pl.151.10"></a><var>151.10</var><br/>
</td>
<td></td>
<td align="right">10<br/>
</td>
<td>and thereafter<br/>
</td>
<td align="center">100 percent<br/>
</td>
</tr>
</table><a id="pl.151.11"></a><var>151.11</var>    Subd. 4. <b>Individual accounts.</b> (a) An individual account must be established for <br/>
<a id="pl.151.12"></a><var>151.12</var>each firefighter who is a member of the relief association.<br/>
<a id="pl.151.13"></a><var>151.13</var>(b) To each individual active member account must be credited an equal share of:<br/>
<a id="pl.151.14"></a><var>151.14</var>(1) any amounts of fire state aid received by the relief association;<br/>
<a id="pl.151.15"></a><var>151.15</var>(2) any amounts of municipal contributions to the relief association raised from <br/>
<a id="pl.151.16"></a><var>151.16</var>levies on real estate or from other available municipal revenue sources exclusive of fire <br/>
<a id="pl.151.17"></a><var>151.17</var>state aid; and<br/>
<a id="pl.151.18"></a><var>151.18</var>(3) any amounts equal to the share of the assets of the special fund to the credit of:<br/>
<a id="pl.151.19"></a><var>151.19</var>(i) any former member who terminated active service with the fire department to <br/>
<a id="pl.151.20"></a><var>151.20</var>which the relief association is associated before meeting the minimum service requirement <br/>
<a id="pl.151.21"></a><var>151.21</var>provided for in subdivision 2, paragraph (b), and has not returned to active service with <br/>
<a id="pl.151.22"></a><var>151.22</var>the fire department for a period no shorter than five years; or<br/>
<a id="pl.151.23"></a><var>151.23</var>(ii) any retired member who retired before obtaining a full nonforfeitable interest in <br/>
<a id="pl.151.24"></a><var>151.24</var>the amounts credited to the individual member account under subdivision 2, paragraph <br/>
<a id="pl.151.25"></a><var>151.25</var>(b), and any applicable provision of the bylaws of the relief association. In addition, any <br/>
<a id="pl.151.26"></a><var>151.26</var>investment return on the assets of the special fund must be credited in proportion to the <br/>
<a id="pl.151.27"></a><var>151.27</var>share of the assets of the special fund to the credit of each individual active member <br/>
<a id="pl.151.28"></a><var>151.28</var>account. Administrative expenses of the relief association payable from the special <br/>
<a id="pl.151.29"></a><var>151.29</var>fund may be deducted from individual accounts in a manner specified in the bylaws of <br/>
<a id="pl.151.30"></a><var>151.30</var>the relief association. <br/>
<a id="pl.151.31"></a><var>151.31</var>(c) Amounts to be credited to individual accounts must be allocated uniformly for all <br/>
<a id="pl.151.32"></a><var>151.32</var>years of active service and allocations must be made for all years of service, except for <br/>
<a id="pl.151.33"></a><var>151.33</var>caps on service credit if so provided in the bylaws of the relief association. The allocation <br/>
<a id="pl.151.34"></a><var>151.34</var>method may utilize monthly proration for fractional years of service, as the bylaws or <br/>
<a id="pl.151.35"></a><var>151.35</var>articles of incorporation of the relief association so provide. The bylaws or articles of <br/>
<a id="pl.151.36"></a><var>151.36</var>incorporation may define a "month," but the definition must require a calendar month to <br/>
<a id="pl.151.37"></a><var>151.37</var>have at least 16 days of active service. If the bylaws or articles of incorporation do not <br/>
<a id="pl.152.1"></a><var>152.1</var>define a "month," a "month" is a completed calendar month of active service measured <br/>
<a id="pl.152.2"></a><var>152.2</var>from the member's date of entry to the same date in the subsequent month. <br/>
<a id="pl.152.3"></a><var>152.3</var>(d) At the time of retirement under subdivision 2 and any applicable provision of the <br/>
<a id="pl.152.4"></a><var>152.4</var>bylaws of the relief association, a retiring member is entitled to that portion of the assets <br/>
<a id="pl.152.5"></a><var>152.5</var>of the special fund to the credit of the member in the individual member account which is <br/>
<a id="pl.152.6"></a><var>152.6</var>nonforfeitable under subdivision 3 and any applicable provision of the bylaws of the relief <br/>
<a id="pl.152.7"></a><var>152.7</var>association based on the number of years of service to the credit of the retiring member.<br/>
<a id="pl.152.8"></a><var>152.8</var>(e) Annually, the secretary of the relief association shall certify the individual <br/>
<a id="pl.152.9"></a><var>152.9</var>account allocations to the state auditor at the same time that the annual financial statement <br/>
<a id="pl.152.10"></a><var>152.10</var>or financial report and audit of the relief association, whichever applies, is due under <br/>
<a id="pl.152.11"></a><var>152.11</var>section 69.051.<br/>
<a id="pl.152.12"></a><var>152.12</var>    Subd. 5. <b>Service pension installment payments.</b> A defined contribution relief <br/>
<a id="pl.152.13"></a><var>152.13</var>association, if the governing bylaws so provide, may pay, at the option of the retiring <br/>
<a id="pl.152.14"></a><var>152.14</var>member and in lieu of a single payment of a service pension, the service pension in <br/>
<a id="pl.152.15"></a><var>152.15</var>installments. The election of installment payments is irrevocable and must be made by the <br/>
<a id="pl.152.16"></a><var>152.16</var>retiring member in writing and filed with the secretary of the relief association no later <br/>
<a id="pl.152.17"></a><var>152.17</var>than 30 days before the commencement of payment of the service pension. The amount of <br/>
<a id="pl.152.18"></a><var>152.18</var>the installment payments must be the fractional portion of the remaining account balance <br/>
<a id="pl.152.19"></a><var>152.19</var>equal to one divided by the number of remaining annual installment payments.<br/>
<a id="pl.152.20"></a><var>152.20</var>    Subd. 6. <b>Deferred service pensions.</b> (a) A member of a relief association is entitled <br/>
<a id="pl.152.21"></a><var>152.21</var>to a deferred service pension if the member:<br/>
<a id="pl.152.22"></a><var>152.22</var>    (1) has completed the lesser of the minimum period of active service with the fire <br/>
<a id="pl.152.23"></a><var>152.23</var>department specified in the bylaws or 20 years of active service with the fire department;<br/>
<a id="pl.152.24"></a><var>152.24</var>    (2) has completed at least five years of active membership in the relief association; <br/>
<a id="pl.152.25"></a><var>152.25</var>and<br/>
<a id="pl.152.26"></a><var>152.26</var>    (3) separates from active service and membership before reaching age 50 or the <br/>
<a id="pl.152.27"></a><var>152.27</var>minimum age for retirement and commencement of a service pension specified in the <br/>
<a id="pl.152.28"></a><var>152.28</var>bylaws governing the relief association if that age is greater than age 50.<br/>
<a id="pl.152.29"></a><var>152.29</var>    (b) The deferred service pension is payable when the former member reaches age <br/>
<a id="pl.152.30"></a><var>152.30</var>50, or the minimum age specified in the bylaws governing the relief association if that age <br/>
<a id="pl.152.31"></a><var>152.31</var>is greater than age 50, and when the former member makes a valid written application.<br/>
<a id="pl.152.32"></a><var>152.32</var>    (c) A defined contribution relief association may, if its governing bylaws so provide, <br/>
<a id="pl.152.33"></a><var>152.33</var>credit interest or additional investment performance on the deferred lump-sum service <br/>
<a id="pl.152.34"></a><var>152.34</var>pension during the period of deferral. If provided for in the bylaws, the interest must be <br/>
<a id="pl.152.35"></a><var>152.35</var>paid:<br/>
<a id="pl.153.1"></a><var>153.1</var>(1) at the investment performance rate actually earned on that portion of the assets <br/>
<a id="pl.153.2"></a><var>153.2</var>if the deferred benefit amount is invested by the relief association in a separate account <br/>
<a id="pl.153.3"></a><var>153.3</var>established and maintained by the relief association or if the deferred benefit amount is <br/>
<a id="pl.153.4"></a><var>153.4</var>invested in a separate investment vehicle held by the relief association; or <br/>
<a id="pl.153.5"></a><var>153.5</var>(2) the investment return on the assets of the special fund of the defined contribution <br/>
<a id="pl.153.6"></a><var>153.6</var>volunteer firefighter relief association in proportion to the share of the assets of the special <br/>
<a id="pl.153.7"></a><var>153.7</var>fund to the credit of each individual deferred member account through the date on which <br/>
<a id="pl.153.8"></a><var>153.8</var>the investment return is recognized by and credited to the special fund.<br/>
<a id="pl.153.9"></a><var>153.9</var>    (d) The deferred service pension is governed by and must be calculated under <br/>
<a id="pl.153.10"></a><var>153.10</var>the general statute, special law, relief association articles of incorporation, and relief <br/>
<a id="pl.153.11"></a><var>153.11</var>association bylaw provisions applicable on the date on which the member separated from <br/>
<a id="pl.153.12"></a><var>153.12</var>active service with the fire department and active membership in the relief association.<br/>
<a id="pl.153.13"></a><var>153.13</var>    Subd. 7. <b>Limitation on ancillary benefits.</b> (a) A defined contribution relief <br/>
<a id="pl.153.14"></a><var>153.14</var>association may only pay an ancillary benefit which would constitute an authorized <br/>
<a id="pl.153.15"></a><var>153.15</var>disbursement as specified in section 424A.05. The ancillary benefit for active members <br/>
<a id="pl.153.16"></a><var>153.16</var>must equal the vested or nonvested amount of the individual account of the member.<br/>
<a id="pl.153.17"></a><var>153.17</var>(b) For deferred members, the ancillary benefit must equal the vested amount of <br/>
<a id="pl.153.18"></a><var>153.18</var>the individual account of the member. For the recipient of installment payments of a <br/>
<a id="pl.153.19"></a><var>153.19</var>service pension, the ancillary benefit must equal the remaining balance in the individual <br/>
<a id="pl.153.20"></a><var>153.20</var>account of the recipient.<br/>
<a id="pl.153.21"></a><var>153.21</var>    Subd. 8. <b>Filing of bylaw amendments.</b> Each relief association to which this section <br/>
<a id="pl.153.22"></a><var>153.22</var>applies must file a revised copy of its governing bylaws with the state auditor upon the <br/>
<a id="pl.153.23"></a><var>153.23</var>adoption of any amendment to its governing bylaws by the relief association. Failure of <br/>
<a id="pl.153.24"></a><var>153.24</var>the relief association to file a copy of the bylaws or any bylaw amendments with the state <br/>
<a id="pl.153.25"></a><var>153.25</var>auditor disqualifies the municipality from the distribution of any future fire state aid until <br/>
<a id="pl.153.26"></a><var>153.26</var>this filing requirement has been completed.<br/>
<a id="pl.153.27"></a><var>153.27</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2009.<br/>
<br/>
<a id="bill.10.24.0"></a><a id="pl.153.28"></a><var>153.28</var>    Sec. 24. Minnesota Statutes 2008, section 424A.02, subdivision 1, is amended to read:<br/>
<a id="pl.153.29"></a><var>153.29</var>    Subdivision 1. <b>Authorization.</b> (a) A defined benefit relief association, when its <br/>
<a id="pl.153.30"></a><var>153.30</var>articles of incorporation or bylaws so provide, may pay out of the assets of its special fund <br/>
<a id="pl.153.31"></a><var>153.31</var>a defined benefit service pension to each of its members who: (1) separates from active <br/>
<a id="pl.153.32"></a><var>153.32</var>service with the fire department; (2) reaches age 50; (3) completes at least five years of <br/>
<a id="pl.153.33"></a><var>153.33</var>active service as an active member of the municipal fire department to which the relief <br/>
<a id="pl.153.34"></a><var>153.34</var>association is associated; (4) completes at least five years of active membership with <br/>
<a id="pl.153.35"></a><var>153.35</var>the relief association before separation from active service; and (5) complies with any <br/>
<a id="pl.154.1"></a><var>154.1</var>additional conditions as to age, service, and membership that are prescribed by the bylaws <br/>
<a id="pl.154.2"></a><var>154.2</var>of the relief association. A service pension computed under this section may be prorated <br/>
<a id="pl.154.3"></a><var>154.3</var>monthly for fractional years of service, if as the bylaws or articles of incorporation of <br/>
<a id="pl.154.4"></a><var>154.4</var>the relief association so provide. The bylaws or articles of incorporation may define <br/>
<a id="pl.154.5"></a><var>154.5</var>a "month," but the definition must require a calendar month to have at least 16 days of <br/>
<a id="pl.154.6"></a><var>154.6</var>active service. If the bylaws or articles of incorporation do not define a "month," a <br/>
<a id="pl.154.7"></a><var>154.7</var>"month" is a completed calendar month of active service measured from the member's <br/>
<a id="pl.154.8"></a><var>154.8</var>date of entry to the same date in the subsequent month. The service pension earned by a <br/>
<a id="pl.154.9"></a><var>154.9</var>volunteer firefighter under this chapter and the articles of incorporation and bylaws of the <br/>
<a id="pl.154.10"></a><var>154.10</var>volunteer firefighters' relief association may be paid whether or not the municipality or <br/>
<a id="pl.154.11"></a><var>154.11</var>nonprofit firefighting corporation to which the relief association is associated qualifies for <br/>
<a id="pl.154.12"></a><var>154.12</var>the receipt of fire state aid under chapter 69.<br/>
<a id="pl.154.13"></a><var>154.13</var>(b) In the case of a member who has completed at least five years of active service as <br/>
<a id="pl.154.14"></a><var>154.14</var>an active member of the fire department to which the relief association is associated on <br/>
<a id="pl.154.15"></a><var>154.15</var>the date that the relief association is established and incorporated, the requirement that <br/>
<a id="pl.154.16"></a><var>154.16</var>the member complete at least five years of active membership with the relief association <br/>
<a id="pl.154.17"></a><var>154.17</var>before separation from active service may be waived by the board of trustees of the relief <br/>
<a id="pl.154.18"></a><var>154.18</var>association if the member completes at least five years of inactive membership with the <br/>
<a id="pl.154.19"></a><var>154.19</var>relief association before the date of the payment of the service pension. During the <br/>
<a id="pl.154.20"></a><var>154.20</var>period of inactive membership, the member is not entitled to receive disability benefit <br/>
<a id="pl.154.21"></a><var>154.21</var>coverage, is not entitled to receive additional service credit towards computation of a <br/>
<a id="pl.154.22"></a><var>154.22</var>service pension, and is considered to have the status of a person entitled to a deferred <br/>
<a id="pl.154.23"></a><var>154.23</var>service pension under subdivision 7.<br/>
<a id="pl.154.24"></a><var>154.24</var>(c) No municipality or nonprofit firefighting corporation may delegate the power to <br/>
<a id="pl.154.25"></a><var>154.25</var>take final action in setting a service pension or ancillary benefit amount or level to the <br/>
<a id="pl.154.26"></a><var>154.26</var>board of trustees of the relief association or to approve in advance a service pension or <br/>
<a id="pl.154.27"></a><var>154.27</var>ancillary benefit amount or level equal to the maximum amount or level that this chapter <br/>
<a id="pl.154.28"></a><var>154.28</var>would allow rather than a specific dollar amount or level.<br/>
<a id="pl.154.29"></a><var>154.29</var>(d) No relief association as defined in section 
         <statute_ref>424A.001, subdivision 4</statute_ref>, may pay a <br/>
<a id="pl.154.30"></a><var>154.30</var>defined benefit service pension or disability benefit to a former member of the relief <br/>
<a id="pl.154.31"></a><var>154.31</var>association if that person has not separated from active service with the fire department to <br/>
<a id="pl.154.32"></a><var>154.32</var>which the relief association is directly associated, unless:<br/>
<a id="pl.154.33"></a><var>154.33</var>(1) the person is employed subsequent to retirement by the municipality or the <br/>
<a id="pl.154.34"></a><var>154.34</var>independent nonprofit firefighting corporation, whichever applies, to perform duties within <br/>
<a id="pl.154.35"></a><var>154.35</var>the municipal fire department or corporation on a full-time basis;<br/>
<a id="pl.155.1"></a><var>155.1</var>(2) the governing body of the municipality or of the corporation has filed its <br/>
<a id="pl.155.2"></a><var>155.2</var>determination with the board of trustees of the relief association that the person's <br/>
<a id="pl.155.3"></a><var>155.3</var>experience with and service to the fire department in that person's full-time capacity <br/>
<a id="pl.155.4"></a><var>155.4</var>would be difficult to replace; and<br/>
<a id="pl.155.5"></a><var>155.5</var>(3) the bylaws of the relief association were amended to provide for the payment of <br/>
<a id="pl.155.6"></a><var>155.6</var>a service pension or disability benefit for such full-time employees.<br/>
<a id="pl.155.7"></a><var>155.7</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2009.<br/>
<br/>
<a id="bill.10.25.0"></a><a id="pl.155.8"></a><var>155.8</var>    Sec. 25. Minnesota Statutes 2008, section 424A.02, subdivision 2, is amended to read:<br/>
<a id="pl.155.9"></a><var>155.9</var>    Subd. 2. <b>Nonforfeitable portion of service pension.</b> (a) If the articles of <br/>
<a id="pl.155.10"></a><var>155.10</var>incorporation or bylaws of a defined benefit relief association so provide, a the relief <br/>
<a id="pl.155.11"></a><var>155.11</var>association may pay a reduced service pension to a retiring member who has completed <br/>
<a id="pl.155.12"></a><var>155.12</var>fewer than 20 years of service. The reduced service pension may be paid when the retiring <br/>
<a id="pl.155.13"></a><var>155.13</var>member meets the minimum age and service requirements of subdivision 1.<br/>
<a id="pl.155.14"></a><var>155.14</var>(b) The amount of the reduced service pension may not exceed the amount calculated <br/>
<a id="pl.155.15"></a><var>155.15</var>by multiplying the service pension appropriate for the completed years of service as <br/>
<a id="pl.155.16"></a><var>155.16</var>specified in the bylaws times multiplied by the applicable nonforfeitable percentage of <br/>
<a id="pl.155.17"></a><var>155.17</var>pension.<br/>
<a id="pl.155.18"></a><var>155.18</var>(c) For a defined benefit volunteer firefighter relief association that pays a lump-sum <br/>
<a id="pl.155.19"></a><var>155.19</var>service pension, a monthly benefit service pension, or a lump-sum service pension or a <br/>
<a id="pl.155.20"></a><var>155.20</var>monthly benefit service pension as alternative benefit forms, the nonforfeitable percentage <br/>
<a id="pl.155.21"></a><var>155.21</var>of pension amounts are as follows:<br/>
<table>
<col width="50px"/>
<col width="10"/>
<col width="10"/>
<col width="17.5"/>
<col width="20"/>
<col width="7.5"/>
<tr>
<td><a id="pl.155.22"></a><var>155.22</var><br/>
<a id="pl.155.23"></a><var>155.23</var><br/>
</td>
<td></td>
<td colspan="2" valign="top">Completed Years of Service<br/>
</td>
<td align="center" colspan="2" valign="top">Nonforfeitable Percentage of <br/>
                  		Pension Amount<br/>
</td>
</tr>
<tr>
<td><a id="pl.155.24"></a><var>155.24</var><br/>
</td>
<td></td>
<td align="right">5<br/>
</td>
<td></td>
<td align="right">40 percent<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.155.25"></a><var>155.25</var><br/>
</td>
<td></td>
<td align="right">6<br/>
</td>
<td></td>
<td align="right">44 percent<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.155.26"></a><var>155.26</var><br/>
</td>
<td></td>
<td align="right">7<br/>
</td>
<td></td>
<td align="right">48 percent<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.155.27"></a><var>155.27</var><br/>
</td>
<td></td>
<td align="right">8<br/>
</td>
<td></td>
<td align="right">52 percent<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.155.28"></a><var>155.28</var><br/>
</td>
<td></td>
<td align="right">9<br/>
</td>
<td></td>
<td align="right">56 percent<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.155.29"></a><var>155.29</var><br/>
</td>
<td></td>
<td align="right">10<br/>
</td>
<td></td>
<td align="right">60 percent<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.155.30"></a><var>155.30</var><br/>
</td>
<td></td>
<td align="right">11<br/>
</td>
<td></td>
<td align="right">64 percent<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.155.31"></a><var>155.31</var><br/>
</td>
<td></td>
<td align="right">12<br/>
</td>
<td></td>
<td align="right">68 percent<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.155.32"></a><var>155.32</var><br/>
</td>
<td></td>
<td align="right">13<br/>
</td>
<td></td>
<td align="right">72 percent<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.155.33"></a><var>155.33</var><br/>
</td>
<td></td>
<td align="right">14<br/>
</td>
<td></td>
<td align="right">76 percent<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.155.34"></a><var>155.34</var><br/>
</td>
<td></td>
<td align="right">15<br/>
</td>
<td></td>
<td align="right">80 percent<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.155.35"></a><var>155.35</var><br/>
</td>
<td></td>
<td align="right">16<br/>
</td>
<td></td>
<td align="right">84 percent<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.155.36"></a><var>155.36</var><br/>
</td>
<td></td>
<td align="right">17<br/>
</td>
<td></td>
<td align="right">88 percent<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.155.37"></a><var>155.37</var><br/>
</td>
<td></td>
<td align="right">18<br/>
</td>
<td></td>
<td align="right">92 percent<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.156.1"></a><var>156.1</var><br/>
</td>
<td></td>
<td align="right">19<br/>
</td>
<td></td>
<td align="right">96 percent<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.156.2"></a><var>156.2</var><br/>
</td>
<td></td>
<td align="right">20<br/>
</td>
<td>and thereafter<br/>
</td>
<td align="right">100 percent<br/>
</td>
<td></td>
</tr>
</table><a id="pl.156.3"></a><var>156.3</var>(d) For a volunteer firefighter relief association that pays a defined contribution <br/>
<a id="pl.156.4"></a><var>156.4</var>service pension, the nonforfeitable percentage of pension amounts are as follows:<br/>
<table>
<col width="50px"/>
<col width="10"/>
<col width="10"/>
<col width="17.5"/>
<col width="20"/>
<col width="7.5"/>
<tr>
<td><a id="pl.156.5"></a><var>156.5</var><br/>
<a id="pl.156.6"></a><var>156.6</var><br/>
</td>
<td></td>
<td colspan="2" valign="top">Completed Years of Service<br/>
</td>
<td align="center" colspan="2" valign="top">Nonforfeitable Percentage of <br/>
Pension Amount <br/>
</td>
</tr>
<tr>
<td><a id="pl.156.7"></a><var>156.7</var><br/>
</td>
<td></td>
<td align="right">5<br/>
</td>
<td></td>
<td align="right">40 percent<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.156.8"></a><var>156.8</var><br/>
</td>
<td></td>
<td align="right">6<br/>
</td>
<td></td>
<td align="right">52 percent<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.156.9"></a><var>156.9</var><br/>
</td>
<td></td>
<td align="right">7<br/>
</td>
<td></td>
<td align="right">64 percent<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.156.10"></a><var>156.10</var><br/>
</td>
<td></td>
<td align="right">8<br/>
</td>
<td></td>
<td align="right">76 percent<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.156.11"></a><var>156.11</var><br/>
</td>
<td></td>
<td align="right">9<br/>
</td>
<td></td>
<td align="right">88 percent<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.156.12"></a><var>156.12</var><br/>
</td>
<td></td>
<td align="right">10<br/>
</td>
<td>and thereafter<br/>
</td>
<td align="right">100 percent<br/>
</td>
<td></td>
</tr>
</table><a id="pl.156.13"></a><var>156.13</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2009.<br/>
<br/>
<a id="bill.10.26.0"></a><a id="pl.156.14"></a><var>156.14</var>    Sec. 26. Minnesota Statutes 2008, section 424A.02, subdivision 3, is amended to read:<br/>
<a id="pl.156.15"></a><var>156.15</var>    Subd. 3. <b>Flexible service pension maximums.</b> (a) Annually on or before August 1 <br/>
<a id="pl.156.16"></a><var>156.16</var>as part of the certification of the financial requirements and minimum municipal obligation <br/>
<a id="pl.156.17"></a><var>156.17</var>determined under section 
         <statute_ref>69.772, subdivision 4</statute_ref>, or 
         <statute_ref>69.773, subdivision 5</statute_ref>, as applicable, <br/>
<a id="pl.156.18"></a><var>156.18</var>the secretary or some other official of the relief association designated in the bylaws of <br/>
<a id="pl.156.19"></a><var>156.19</var>each defined benefit relief association shall calculate and certify to the governing body <br/>
<a id="pl.156.20"></a><var>156.20</var>of the applicable qualified municipality the average amount of available financing per <br/>
<a id="pl.156.21"></a><var>156.21</var>active covered firefighter for the most recent three-year period. The amount of available <br/>
<a id="pl.156.22"></a><var>156.22</var>financing shall include includes any amounts of fire state aid received or receivable by the <br/>
<a id="pl.156.23"></a><var>156.23</var>relief association, any amounts of municipal contributions to the relief association raised <br/>
<a id="pl.156.24"></a><var>156.24</var>from levies on real estate or from other available revenue sources exclusive of fire state <br/>
<a id="pl.156.25"></a><var>156.25</var>aid, and one-tenth of the amount of assets in excess of the accrued liabilities of the relief <br/>
<a id="pl.156.26"></a><var>156.26</var>association calculated under section 
         <statute_ref>69.772, subdivision 2</statute_ref>; 
         <statute_ref>69.773, subdivisions 2 and 4</statute_ref>; <br/>
<a id="pl.156.27"></a><var>156.27</var>or 
         <statute_ref>69.774, subdivision 2</statute_ref>, if any.<br/>
<a id="pl.156.28"></a><var>156.28</var>    (b) The maximum service pension which the defined benefit relief association has <br/>
<a id="pl.156.29"></a><var>156.29</var>authority to provide for in its bylaws for payment to a member retiring after the calculation <br/>
<a id="pl.156.30"></a><var>156.30</var>date when the minimum age and service requirements specified in subdivision 1 are met <br/>
<a id="pl.156.31"></a><var>156.31</var>must be determined using the table in paragraph (c) or (d), whichever applies.<br/>
<a id="pl.156.32"></a><var>156.32</var>    (c) For a defined benefit relief association where the governing bylaws provide for <br/>
<a id="pl.156.33"></a><var>156.33</var>a monthly service pension to a retiring member, the maximum monthly service pension <br/>
<a id="pl.156.34"></a><var>156.34</var>amount per month for each year of service credited that may be provided for in the bylaws <br/>
<a id="pl.156.35"></a><var>156.35</var>is the greater of the service pension amount provided for in the bylaws on the date of the <br/>
<a id="pl.156.36"></a><var>156.36</var>calculation of the average amount of the available financing per active covered firefighter <br/>
<a id="pl.157.1"></a><var>157.1</var>or the maximum service pension figure corresponding to the average amount of available <br/>
<a id="pl.157.2"></a><var>157.2</var>financing per active covered firefighter:<br/>
<table>
<col width="50px"/>
<col width="20"/>
<col width="15"/>
<col width="15"/>
<col width="10"/>
<tr>
<td><a id="pl.157.3"></a><var>157.3</var><br/>
<a id="pl.157.4"></a><var>157.4</var><br/>
<a id="pl.157.5"></a><var>157.5</var><br/>
</td>
<td align="center" colspan="2" valign="top">Minimum Average Amount of Available <br/>
                  		Financing per Firefighter<br/>
</td>
<td align="center" colspan="2" valign="top">Maximum Service Pension Amount <br/>
                  		Payable per Month for Each <br/>
                  		Year of Service<br/>
</td>
</tr>
<tr>
<td><a id="pl.157.6"></a><var>157.6</var><br/>
</td>
<td align="right">$ ...<br/>
</td>
<td></td>
<td align="right">$ .25<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.157.7"></a><var>157.7</var><br/>
</td>
<td align="right">41<br/>
</td>
<td></td>
<td align="right">.50<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.157.8"></a><var>157.8</var><br/>
</td>
<td align="right">81<br/>
</td>
<td></td>
<td align="right">1.00<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.157.9"></a><var>157.9</var><br/>
</td>
<td align="right">122<br/>
</td>
<td></td>
<td align="right">1.50<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.157.10"></a><var>157.10</var><br/>
</td>
<td align="right">162<br/>
</td>
<td></td>
<td align="right">2.00<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.157.11"></a><var>157.11</var><br/>
</td>
<td align="right">203<br/>
</td>
<td></td>
<td align="right">2.50<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.157.12"></a><var>157.12</var><br/>
</td>
<td align="right">243<br/>
</td>
<td></td>
<td align="right">3.00<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.157.13"></a><var>157.13</var><br/>
</td>
<td align="right">284<br/>
</td>
<td></td>
<td align="right">3.50<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.157.14"></a><var>157.14</var><br/>
</td>
<td align="right">324<br/>
</td>
<td></td>
<td align="right">4.00<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.157.15"></a><var>157.15</var><br/>
</td>
<td align="right">365<br/>
</td>
<td></td>
<td align="right">4.50<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.157.16"></a><var>157.16</var><br/>
</td>
<td align="right">405<br/>
</td>
<td></td>
<td align="right">5.00<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.157.17"></a><var>157.17</var><br/>
</td>
<td align="right">486<br/>
</td>
<td></td>
<td align="right">6.00<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.157.18"></a><var>157.18</var><br/>
</td>
<td align="right">567<br/>
</td>
<td></td>
<td align="right">7.00<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.157.19"></a><var>157.19</var><br/>
</td>
<td align="right">648<br/>
</td>
<td></td>
<td align="right">8.00<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.157.20"></a><var>157.20</var><br/>
</td>
<td align="right">729<br/>
</td>
<td></td>
<td align="right">9.00<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.157.21"></a><var>157.21</var><br/>
</td>
<td align="right">810<br/>
</td>
<td></td>
<td align="right">10.00<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.157.22"></a><var>157.22</var><br/>
</td>
<td align="right">891<br/>
</td>
<td></td>
<td align="right">11.00<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.157.23"></a><var>157.23</var><br/>
</td>
<td align="right">972<br/>
</td>
<td></td>
<td align="right">12.00<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.157.24"></a><var>157.24</var><br/>
</td>
<td align="right">1053<br/>
</td>
<td></td>
<td align="right">13.00<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.157.25"></a><var>157.25</var><br/>
</td>
<td align="right">1134<br/>
</td>
<td></td>
<td align="right">14.00<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.157.26"></a><var>157.26</var><br/>
</td>
<td align="right">1215<br/>
</td>
<td></td>
<td align="right">15.00<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.157.27"></a><var>157.27</var><br/>
</td>
<td align="right">1296<br/>
</td>
<td></td>
<td align="right">16.00<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.157.28"></a><var>157.28</var><br/>
</td>
<td align="right">1377<br/>
</td>
<td></td>
<td align="right">17.00<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.157.29"></a><var>157.29</var><br/>
</td>
<td align="right">1458<br/>
</td>
<td></td>
<td align="right">18.00<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.157.30"></a><var>157.30</var><br/>
</td>
<td align="right">1539<br/>
</td>
<td></td>
<td align="right">19.00<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.157.31"></a><var>157.31</var><br/>
</td>
<td align="right">1620<br/>
</td>
<td></td>
<td align="right">20.00<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.157.32"></a><var>157.32</var><br/>
</td>
<td align="right">1701<br/>
</td>
<td></td>
<td align="right">21.00<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.157.33"></a><var>157.33</var><br/>
</td>
<td align="right">1782<br/>
</td>
<td></td>
<td align="right">22.00<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.157.34"></a><var>157.34</var><br/>
</td>
<td align="right">1823<br/>
</td>
<td></td>
<td align="right">22.50<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.157.35"></a><var>157.35</var><br/>
</td>
<td align="right">1863<br/>
</td>
<td></td>
<td align="right">23.00<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.157.36"></a><var>157.36</var><br/>
</td>
<td align="right">1944<br/>
</td>
<td></td>
<td align="right">24.00<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.157.37"></a><var>157.37</var><br/>
</td>
<td align="right">2025<br/>
</td>
<td></td>
<td align="right">25.00<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.157.38"></a><var>157.38</var><br/>
</td>
<td align="right">2106<br/>
</td>
<td></td>
<td align="right">26.00<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.157.39"></a><var>157.39</var><br/>
</td>
<td align="right">2187<br/>
</td>
<td></td>
<td align="right">27.00<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.157.40"></a><var>157.40</var><br/>
</td>
<td align="right">2268<br/>
</td>
<td></td>
<td align="right">28.00<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.157.41"></a><var>157.41</var><br/>
</td>
<td align="right">2349<br/>
</td>
<td></td>
<td align="right">29.00<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.157.42"></a><var>157.42</var><br/>
</td>
<td align="right">2430<br/>
</td>
<td></td>
<td align="right">30.00<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.157.43"></a><var>157.43</var><br/>
</td>
<td align="right">2511<br/>
</td>
<td></td>
<td align="right">31.00<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.157.44"></a><var>157.44</var><br/>
</td>
<td align="right">2592<br/>
</td>
<td></td>
<td align="right">32.00<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.158.1"></a><var>158.1</var><br/>
</td>
<td align="right">2673<br/>
</td>
<td></td>
<td align="right">33.00<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.158.2"></a><var>158.2</var><br/>
</td>
<td align="right">2754<br/>
</td>
<td></td>
<td align="right">34.00<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.158.3"></a><var>158.3</var><br/>
</td>
<td align="right">2834<br/>
</td>
<td></td>
<td align="right">35.00<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.158.4"></a><var>158.4</var><br/>
</td>
<td align="right">2916<br/>
</td>
<td></td>
<td align="right">36.00<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.158.5"></a><var>158.5</var><br/>
</td>
<td align="right">2997<br/>
</td>
<td></td>
<td align="right">37.00<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.158.6"></a><var>158.6</var><br/>
</td>
<td align="right">3078<br/>
</td>
<td></td>
<td align="right">38.00<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.158.7"></a><var>158.7</var><br/>
</td>
<td align="right">3159<br/>
</td>
<td></td>
<td align="right">39.00<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.158.8"></a><var>158.8</var><br/>
</td>
<td align="right">3240<br/>
</td>
<td></td>
<td align="right">40.00<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.158.9"></a><var>158.9</var><br/>
</td>
<td align="right">3321<br/>
</td>
<td></td>
<td align="right">41.00<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.158.10"></a><var>158.10</var><br/>
</td>
<td align="right">3402<br/>
</td>
<td></td>
<td align="right">42.00<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.158.11"></a><var>158.11</var><br/>
</td>
<td align="right">3483<br/>
</td>
<td></td>
<td align="right">43.00<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.158.12"></a><var>158.12</var><br/>
</td>
<td align="right">3564<br/>
</td>
<td></td>
<td align="right">44.00<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.158.13"></a><var>158.13</var><br/>
</td>
<td align="right">3645<br/>
</td>
<td></td>
<td align="right">45.00<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.158.14"></a><var>158.14</var><br/>
</td>
<td align="right">3726<br/>
</td>
<td></td>
<td align="right">46.00<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.158.15"></a><var>158.15</var><br/>
</td>
<td align="right">3807<br/>
</td>
<td></td>
<td align="right">47.00<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.158.16"></a><var>158.16</var><br/>
</td>
<td align="right">3888<br/>
</td>
<td></td>
<td align="right">48.00<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.158.17"></a><var>158.17</var><br/>
</td>
<td align="right">3969<br/>
</td>
<td></td>
<td align="right">49.00<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.158.18"></a><var>158.18</var><br/>
</td>
<td align="right">4050<br/>
</td>
<td></td>
<td align="right">50.00<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.158.19"></a><var>158.19</var><br/>
</td>
<td align="right">4131<br/>
</td>
<td></td>
<td align="right">51.00<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.158.20"></a><var>158.20</var><br/>
</td>
<td align="right">4212<br/>
</td>
<td></td>
<td align="right">52.00<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.158.21"></a><var>158.21</var><br/>
</td>
<td align="right">4293<br/>
</td>
<td></td>
<td align="right">53.00<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.158.22"></a><var>158.22</var><br/>
</td>
<td align="right">4374<br/>
</td>
<td></td>
<td align="right">54.00<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.158.23"></a><var>158.23</var><br/>
</td>
<td align="right">4455<br/>
</td>
<td></td>
<td align="right">55.00<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.158.24"></a><var>158.24</var><br/>
</td>
<td align="right">4536<br/>
</td>
<td></td>
<td align="right">56.00<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.158.25"></a><var>158.25</var><br/>
</td>
<td align="center" colspan="2" valign="top">Effective beginning December 31, 2008<br/>
</td>
<td></td>
<td></td>
</tr>
<tr>
<td><a id="pl.158.26"></a><var>158.26</var><br/>
</td>
<td align="right">4617<br/>
</td>
<td></td>
<td align="right">57.00<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.158.27"></a><var>158.27</var><br/>
</td>
<td align="right">4698<br/>
</td>
<td></td>
<td align="right">58.00<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.158.28"></a><var>158.28</var><br/>
</td>
<td align="right">4779<br/>
</td>
<td></td>
<td align="right">59.00<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.158.29"></a><var>158.29</var><br/>
</td>
<td align="right">4860<br/>
</td>
<td></td>
<td align="right">60.00<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.158.30"></a><var>158.30</var><br/>
</td>
<td align="right">4941<br/>
</td>
<td></td>
<td align="right">61.00<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.158.31"></a><var>158.31</var><br/>
</td>
<td align="right">5022<br/>
</td>
<td></td>
<td align="right">62.00<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.158.32"></a><var>158.32</var><br/>
</td>
<td align="right">5103<br/>
</td>
<td></td>
<td align="right">63.00<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.158.33"></a><var>158.33</var><br/>
</td>
<td align="right">5184<br/>
</td>
<td></td>
<td align="right">64.00<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.158.34"></a><var>158.34</var><br/>
</td>
<td align="right">5265<br/>
</td>
<td></td>
<td align="right">65.00<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.158.35"></a><var>158.35</var><br/>
</td>
<td align="center" colspan="2" valign="top">Effective beginning December 31, 2009<br/>
</td>
<td></td>
<td></td>
</tr>
<tr>
<td><a id="pl.158.36"></a><var>158.36</var><br/>
</td>
<td align="right">5346<br/>
</td>
<td></td>
<td align="right">66.00<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.158.37"></a><var>158.37</var><br/>
</td>
<td align="right">5427<br/>
</td>
<td></td>
<td align="right">67.00<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.158.38"></a><var>158.38</var><br/>
</td>
<td align="right">5508<br/>
</td>
<td></td>
<td align="right">68.00<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.158.39"></a><var>158.39</var><br/>
</td>
<td align="right">5589<br/>
</td>
<td></td>
<td align="right">69.00<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.158.40"></a><var>158.40</var><br/>
</td>
<td align="right">5670<br/>
</td>
<td></td>
<td align="right">70.00<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.158.41"></a><var>158.41</var><br/>
</td>
<td align="right">5751<br/>
</td>
<td></td>
<td align="right">71.00<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.158.42"></a><var>158.42</var><br/>
</td>
<td align="right">5832<br/>
</td>
<td></td>
<td align="right">72.00<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.158.43"></a><var>158.43</var><br/>
</td>
<td align="right">5913<br/>
</td>
<td></td>
<td align="right">73.00<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.159.1"></a><var>159.1</var><br/>
</td>
<td align="right">5994<br/>
</td>
<td></td>
<td align="right">74.00<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.159.2"></a><var>159.2</var><br/>
</td>
<td align="center" colspan="2" valign="top">Effective beginning December 31, 2010<br/>
</td>
<td></td>
<td></td>
</tr>
<tr>
<td><a id="pl.159.3"></a><var>159.3</var><br/>
</td>
<td align="right">6075<br/>
</td>
<td></td>
<td align="right">75.00<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.159.4"></a><var>159.4</var><br/>
</td>
<td align="right">6156<br/>
</td>
<td></td>
<td align="right">76.00<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.159.5"></a><var>159.5</var><br/>
</td>
<td align="right">6237<br/>
</td>
<td></td>
<td align="right">77.00<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.159.6"></a><var>159.6</var><br/>
</td>
<td align="right">6318<br/>
</td>
<td></td>
<td align="right">78.00<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.159.7"></a><var>159.7</var><br/>
</td>
<td align="right">6399<br/>
</td>
<td></td>
<td align="right">79.00<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.159.8"></a><var>159.8</var><br/>
</td>
<td align="right">6480<br/>
</td>
<td></td>
<td align="right">80.00<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.159.9"></a><var>159.9</var><br/>
</td>
<td align="right">6561<br/>
</td>
<td></td>
<td align="right">81.00<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.159.10"></a><var>159.10</var><br/>
</td>
<td align="right">6642<br/>
</td>
<td></td>
<td align="right">82.00<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.159.11"></a><var>159.11</var><br/>
</td>
<td align="right">6723<br/>
</td>
<td></td>
<td align="right">83.00<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.159.12"></a><var>159.12</var><br/>
</td>
<td align="center" colspan="2" valign="top">Effective beginning December 31, 2011<br/>
</td>
<td></td>
<td></td>
</tr>
<tr>
<td><a id="pl.159.13"></a><var>159.13</var><br/>
</td>
<td align="right">6804<br/>
</td>
<td></td>
<td align="right">84.00<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.159.14"></a><var>159.14</var><br/>
</td>
<td align="right">6885<br/>
</td>
<td></td>
<td align="right">85.00<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.159.15"></a><var>159.15</var><br/>
</td>
<td align="right">6966<br/>
</td>
<td></td>
<td align="right">86.00<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.159.16"></a><var>159.16</var><br/>
</td>
<td align="right">7047<br/>
</td>
<td></td>
<td align="right">87.00<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.159.17"></a><var>159.17</var><br/>
</td>
<td align="right">7128<br/>
</td>
<td></td>
<td align="right">88.00<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.159.18"></a><var>159.18</var><br/>
</td>
<td align="right">7209<br/>
</td>
<td></td>
<td align="right">89.00<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.159.19"></a><var>159.19</var><br/>
</td>
<td align="right">7290<br/>
</td>
<td></td>
<td align="right">90.00<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.159.20"></a><var>159.20</var><br/>
</td>
<td align="right">7371<br/>
</td>
<td></td>
<td align="right">91.00<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.159.21"></a><var>159.21</var><br/>
</td>
<td align="right">7452<br/>
</td>
<td></td>
<td align="right">92.00<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.159.22"></a><var>159.22</var><br/>
</td>
<td align="center" colspan="2" valign="top">Effective beginning December 31, 2012<br/>
</td>
<td></td>
<td></td>
</tr>
<tr>
<td><a id="pl.159.23"></a><var>159.23</var><br/>
</td>
<td align="right">7533<br/>
</td>
<td></td>
<td align="right">93.00<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.159.24"></a><var>159.24</var><br/>
</td>
<td align="right">7614<br/>
</td>
<td></td>
<td align="right">94.00<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.159.25"></a><var>159.25</var><br/>
</td>
<td align="right">7695<br/>
</td>
<td></td>
<td align="right">95.00<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.159.26"></a><var>159.26</var><br/>
</td>
<td align="right">7776<br/>
</td>
<td></td>
<td align="right">96.00<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.159.27"></a><var>159.27</var><br/>
</td>
<td align="right">7857<br/>
</td>
<td></td>
<td align="right">97.00<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.159.28"></a><var>159.28</var><br/>
</td>
<td align="right">7938<br/>
</td>
<td></td>
<td align="right">98.00<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.159.29"></a><var>159.29</var><br/>
</td>
<td align="right">8019<br/>
</td>
<td></td>
<td align="right">99.00<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.159.30"></a><var>159.30</var><br/>
</td>
<td align="right">8100<br/>
</td>
<td></td>
<td align="right">100.00<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.159.31"></a><var>159.31</var><br/>
</td>
<td align="right">any amount in excess of <br/>
</td>
<td></td>
<td></td>
<td></td>
</tr>
<tr>
<td><a id="pl.159.32"></a><var>159.32</var><br/>
</td>
<td align="right">8100<br/>
</td>
<td></td>
<td align="right">100.00<br/>
</td>
<td></td>
</tr>
</table><a id="pl.159.33"></a><var>159.33</var>    (d) For a defined benefit relief association in which the governing bylaws provide <br/>
<a id="pl.159.34"></a><var>159.34</var>for a lump-sum service pension to a retiring member, the maximum lump-sum service <br/>
<a id="pl.159.35"></a><var>159.35</var>pension amount for each year of service credited that may be provided for in the bylaws is <br/>
<a id="pl.159.36"></a><var>159.36</var>the greater of the service pension amount provided for in the bylaws on the date of the <br/>
<a id="pl.159.37"></a><var>159.37</var>calculation of the average amount of the available financing per active covered firefighter <br/>
<a id="pl.159.38"></a><var>159.38</var>or the maximum service pension figure corresponding to the average amount of available <br/>
<a id="pl.159.39"></a><var>159.39</var>financing per active covered firefighter for the applicable specified period:<br/>
<table>
<col width="50px"/>
<col width="20"/>
<col width="15"/>
<col width="15"/>
<col width="10"/>
<tr>
<td><a id="pl.160.1"></a><var>160.1</var><br/>
<a id="pl.160.2"></a><var>160.2</var><br/>
<a id="pl.160.3"></a><var>160.3</var><br/>
</td>
<td align="center" colspan="2" valign="top">Minimum Average Amount of Available <br/>
                  		Financing per Firefighter<br/>
</td>
<td align="center" colspan="2" valign="top">Maximum Lump-Sum Service <br/>
                  		Pension Amount Payable for <br/>
                  		Each Year of Service<br/>
</td>
</tr>
<tr>
<td><a id="pl.160.4"></a><var>160.4</var><br/>
</td>
<td align="right">$ ...<br/>
</td>
<td></td>
<td align="right">$ 10<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.160.5"></a><var>160.5</var><br/>
</td>
<td align="right">11<br/>
</td>
<td></td>
<td align="right">20<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.160.6"></a><var>160.6</var><br/>
</td>
<td align="right">16<br/>
</td>
<td></td>
<td align="right">30<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.160.7"></a><var>160.7</var><br/>
</td>
<td align="right">23<br/>
</td>
<td></td>
<td align="right">40<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.160.8"></a><var>160.8</var><br/>
</td>
<td align="right">27<br/>
</td>
<td></td>
<td align="right">50<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.160.9"></a><var>160.9</var><br/>
</td>
<td align="right">32<br/>
</td>
<td></td>
<td align="right">60<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.160.10"></a><var>160.10</var><br/>
</td>
<td align="right">43<br/>
</td>
<td></td>
<td align="right">80<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.160.11"></a><var>160.11</var><br/>
</td>
<td align="right">54<br/>
</td>
<td></td>
<td align="right">100<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.160.12"></a><var>160.12</var><br/>
</td>
<td align="right">65<br/>
</td>
<td></td>
<td align="right">120<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.160.13"></a><var>160.13</var><br/>
</td>
<td align="right">77<br/>
</td>
<td></td>
<td align="right">140<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.160.14"></a><var>160.14</var><br/>
</td>
<td align="right">86<br/>
</td>
<td></td>
<td align="right">160<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.160.15"></a><var>160.15</var><br/>
</td>
<td align="right">97<br/>
</td>
<td></td>
<td align="right">180<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.160.16"></a><var>160.16</var><br/>
</td>
<td align="right">108<br/>
</td>
<td></td>
<td align="right">200<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.160.17"></a><var>160.17</var><br/>
</td>
<td align="right">131<br/>
</td>
<td></td>
<td align="right">240<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.160.18"></a><var>160.18</var><br/>
</td>
<td align="right">151<br/>
</td>
<td></td>
<td align="right">280<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.160.19"></a><var>160.19</var><br/>
</td>
<td align="right">173<br/>
</td>
<td></td>
<td align="right">320<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.160.20"></a><var>160.20</var><br/>
</td>
<td align="right">194<br/>
</td>
<td></td>
<td align="right">360<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.160.21"></a><var>160.21</var><br/>
</td>
<td align="right">216<br/>
</td>
<td></td>
<td align="right">400<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.160.22"></a><var>160.22</var><br/>
</td>
<td align="right">239<br/>
</td>
<td></td>
<td align="right">440<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.160.23"></a><var>160.23</var><br/>
</td>
<td align="right">259<br/>
</td>
<td></td>
<td align="right">480<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.160.24"></a><var>160.24</var><br/>
</td>
<td align="right">281<br/>
</td>
<td></td>
<td align="right">520<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.160.25"></a><var>160.25</var><br/>
</td>
<td align="right">302<br/>
</td>
<td></td>
<td align="right">560<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.160.26"></a><var>160.26</var><br/>
</td>
<td align="right">324<br/>
</td>
<td></td>
<td align="right">600<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.160.27"></a><var>160.27</var><br/>
</td>
<td align="right">347<br/>
</td>
<td></td>
<td align="right">640<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.160.28"></a><var>160.28</var><br/>
</td>
<td align="right">367<br/>
</td>
<td></td>
<td align="right">680<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.160.29"></a><var>160.29</var><br/>
</td>
<td align="right">389<br/>
</td>
<td></td>
<td align="right">720<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.160.30"></a><var>160.30</var><br/>
</td>
<td align="right">410<br/>
</td>
<td></td>
<td align="right">760<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.160.31"></a><var>160.31</var><br/>
</td>
<td align="right">432<br/>
</td>
<td></td>
<td align="right">800<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.160.32"></a><var>160.32</var><br/>
</td>
<td align="right">486<br/>
</td>
<td></td>
<td align="right">900<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.160.33"></a><var>160.33</var><br/>
</td>
<td align="right">540<br/>
</td>
<td></td>
<td align="right">1000<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.160.34"></a><var>160.34</var><br/>
</td>
<td align="right">594<br/>
</td>
<td></td>
<td align="right">1100<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.160.35"></a><var>160.35</var><br/>
</td>
<td align="right">648<br/>
</td>
<td></td>
<td align="right">1200<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.160.36"></a><var>160.36</var><br/>
</td>
<td align="right">702<br/>
</td>
<td></td>
<td align="right">1300<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.160.37"></a><var>160.37</var><br/>
</td>
<td align="right">756<br/>
</td>
<td></td>
<td align="right">1400<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.160.38"></a><var>160.38</var><br/>
</td>
<td align="right">810<br/>
</td>
<td></td>
<td align="right">1500<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.160.39"></a><var>160.39</var><br/>
</td>
<td align="right">864<br/>
</td>
<td></td>
<td align="right">1600<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.160.40"></a><var>160.40</var><br/>
</td>
<td align="right">918<br/>
</td>
<td></td>
<td align="right">1700<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.160.41"></a><var>160.41</var><br/>
</td>
<td align="right">972<br/>
</td>
<td></td>
<td align="right">1800<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.160.42"></a><var>160.42</var><br/>
</td>
<td align="right">1026<br/>
</td>
<td></td>
<td align="right">1900<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.160.43"></a><var>160.43</var><br/>
</td>
<td align="right">1080<br/>
</td>
<td></td>
<td align="right">2000<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.160.44"></a><var>160.44</var><br/>
</td>
<td align="right">1134<br/>
</td>
<td></td>
<td align="right">2100<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.161.1"></a><var>161.1</var><br/>
</td>
<td align="right">1188<br/>
</td>
<td></td>
<td align="right">2200<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.161.2"></a><var>161.2</var><br/>
</td>
<td align="right">1242<br/>
</td>
<td></td>
<td align="right">2300<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.161.3"></a><var>161.3</var><br/>
</td>
<td align="right">1296<br/>
</td>
<td></td>
<td align="right">2400<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.161.4"></a><var>161.4</var><br/>
</td>
<td align="right">1350<br/>
</td>
<td></td>
<td align="right">2500<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.161.5"></a><var>161.5</var><br/>
</td>
<td align="right">1404<br/>
</td>
<td></td>
<td align="right">2600<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.161.6"></a><var>161.6</var><br/>
</td>
<td align="right">1458<br/>
</td>
<td></td>
<td align="right">2700<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.161.7"></a><var>161.7</var><br/>
</td>
<td align="right">1512<br/>
</td>
<td></td>
<td align="right">2800<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.161.8"></a><var>161.8</var><br/>
</td>
<td align="right">1566<br/>
</td>
<td></td>
<td align="right">2900<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.161.9"></a><var>161.9</var><br/>
</td>
<td align="right">1620<br/>
</td>
<td></td>
<td align="right">3000<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.161.10"></a><var>161.10</var><br/>
</td>
<td align="right">1672<br/>
</td>
<td></td>
<td align="right">3100<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.161.11"></a><var>161.11</var><br/>
</td>
<td align="right">1726<br/>
</td>
<td></td>
<td align="right">3200<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.161.12"></a><var>161.12</var><br/>
</td>
<td align="right">1753<br/>
</td>
<td></td>
<td align="right">3250<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.161.13"></a><var>161.13</var><br/>
</td>
<td align="right">1780<br/>
</td>
<td></td>
<td align="right">3300<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.161.14"></a><var>161.14</var><br/>
</td>
<td align="right">1820<br/>
</td>
<td></td>
<td align="right">3375<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.161.15"></a><var>161.15</var><br/>
</td>
<td align="right">1834<br/>
</td>
<td></td>
<td align="right">3400<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.161.16"></a><var>161.16</var><br/>
</td>
<td align="right">1888<br/>
</td>
<td></td>
<td align="right">3500<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.161.17"></a><var>161.17</var><br/>
</td>
<td align="right">1942<br/>
</td>
<td></td>
<td align="right">3600<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.161.18"></a><var>161.18</var><br/>
</td>
<td align="right">1996<br/>
</td>
<td></td>
<td align="right">3700<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.161.19"></a><var>161.19</var><br/>
</td>
<td align="right">2023<br/>
</td>
<td></td>
<td align="right">3750<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.161.20"></a><var>161.20</var><br/>
</td>
<td align="right">2050<br/>
</td>
<td></td>
<td align="right">3800<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.161.21"></a><var>161.21</var><br/>
</td>
<td align="right">2104<br/>
</td>
<td></td>
<td align="right">3900<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.161.22"></a><var>161.22</var><br/>
</td>
<td align="right">2158<br/>
</td>
<td></td>
<td align="right">4000<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.161.23"></a><var>161.23</var><br/>
</td>
<td align="right">2212<br/>
</td>
<td></td>
<td align="right">4100<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.161.24"></a><var>161.24</var><br/>
</td>
<td align="right">2265<br/>
</td>
<td></td>
<td align="right">4200<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.161.25"></a><var>161.25</var><br/>
</td>
<td align="right">2319<br/>
</td>
<td></td>
<td align="right">4300<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.161.26"></a><var>161.26</var><br/>
</td>
<td align="right">2373<br/>
</td>
<td></td>
<td align="right">4400<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.161.27"></a><var>161.27</var><br/>
</td>
<td align="right">2427<br/>
</td>
<td></td>
<td align="right">4500<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.161.28"></a><var>161.28</var><br/>
</td>
<td align="right">2481<br/>
</td>
<td></td>
<td align="right">4600<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.161.29"></a><var>161.29</var><br/>
</td>
<td align="right">2535<br/>
</td>
<td></td>
<td align="right">4700<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.161.30"></a><var>161.30</var><br/>
</td>
<td align="right">2589<br/>
</td>
<td></td>
<td align="right">4800<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.161.31"></a><var>161.31</var><br/>
</td>
<td align="right">2643<br/>
</td>
<td></td>
<td align="right">4900<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.161.32"></a><var>161.32</var><br/>
</td>
<td align="right">2697<br/>
</td>
<td></td>
<td align="right">5000<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.161.33"></a><var>161.33</var><br/>
</td>
<td align="right">2751<br/>
</td>
<td></td>
<td align="right">5100<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.161.34"></a><var>161.34</var><br/>
</td>
<td align="right">2805<br/>
</td>
<td></td>
<td align="right">5200<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.161.35"></a><var>161.35</var><br/>
</td>
<td align="right">2859<br/>
</td>
<td></td>
<td align="right">5300<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.161.36"></a><var>161.36</var><br/>
</td>
<td align="right">2913<br/>
</td>
<td></td>
<td align="right">5400<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.161.37"></a><var>161.37</var><br/>
</td>
<td align="right">2967<br/>
</td>
<td></td>
<td align="right">5500<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.161.38"></a><var>161.38</var><br/>
</td>
<td align="right">3021<br/>
</td>
<td></td>
<td align="right">5600<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.161.39"></a><var>161.39</var><br/>
</td>
<td align="right">3075<br/>
</td>
<td></td>
<td align="right">5700<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.161.40"></a><var>161.40</var><br/>
</td>
<td align="right">3129<br/>
</td>
<td></td>
<td align="right">5800<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.161.41"></a><var>161.41</var><br/>
</td>
<td align="right">3183<br/>
</td>
<td></td>
<td align="right">5900<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.161.42"></a><var>161.42</var><br/>
</td>
<td align="right">3237<br/>
</td>
<td></td>
<td align="right">6000<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.161.43"></a><var>161.43</var><br/>
</td>
<td align="right">3291<br/>
</td>
<td></td>
<td align="right">6100<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.162.1"></a><var>162.1</var><br/>
</td>
<td align="right">3345<br/>
</td>
<td></td>
<td align="right">6200<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.162.2"></a><var>162.2</var><br/>
</td>
<td align="right">3399<br/>
</td>
<td></td>
<td align="right">6300<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.162.3"></a><var>162.3</var><br/>
</td>
<td align="right">3453<br/>
</td>
<td></td>
<td align="right">6400<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.162.4"></a><var>162.4</var><br/>
</td>
<td align="right">3507<br/>
</td>
<td></td>
<td align="right">6500<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.162.5"></a><var>162.5</var><br/>
</td>
<td align="right">3561<br/>
</td>
<td></td>
<td align="right">6600<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.162.6"></a><var>162.6</var><br/>
</td>
<td align="right">3615<br/>
</td>
<td></td>
<td align="right">6700<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.162.7"></a><var>162.7</var><br/>
</td>
<td align="right">3669<br/>
</td>
<td></td>
<td align="right">6800<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.162.8"></a><var>162.8</var><br/>
</td>
<td align="right">3723<br/>
</td>
<td></td>
<td align="right">6900<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.162.9"></a><var>162.9</var><br/>
</td>
<td align="right">3777<br/>
</td>
<td></td>
<td align="right">7000<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.162.10"></a><var>162.10</var><br/>
</td>
<td align="right">3831<br/>
</td>
<td></td>
<td align="right">7100<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.162.11"></a><var>162.11</var><br/>
</td>
<td align="right">3885<br/>
</td>
<td></td>
<td align="right">7200<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.162.12"></a><var>162.12</var><br/>
</td>
<td align="right">3939<br/>
</td>
<td></td>
<td align="right">7300<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.162.13"></a><var>162.13</var><br/>
</td>
<td align="right">3993<br/>
</td>
<td></td>
<td align="right">7400<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.162.14"></a><var>162.14</var><br/>
</td>
<td align="right">4047<br/>
</td>
<td></td>
<td align="right">7500<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.162.15"></a><var>162.15</var><br/>
</td>
<td align="center" colspan="2" valign="top">Effective beginning December 31, 2008<br/>
</td>
<td></td>
<td></td>
</tr>
<tr>
<td><a id="pl.162.16"></a><var>162.16</var><br/>
</td>
<td align="right">4101<br/>
</td>
<td></td>
<td align="right">7600<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.162.17"></a><var>162.17</var><br/>
</td>
<td align="right">4155<br/>
</td>
<td></td>
<td align="right">7700<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.162.18"></a><var>162.18</var><br/>
</td>
<td align="right">4209<br/>
</td>
<td></td>
<td align="right">7800<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.162.19"></a><var>162.19</var><br/>
</td>
<td align="right">4263<br/>
</td>
<td></td>
<td align="right">7900<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.162.20"></a><var>162.20</var><br/>
</td>
<td align="right">4317<br/>
</td>
<td></td>
<td align="right">8000<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.162.21"></a><var>162.21</var><br/>
</td>
<td align="right">4371<br/>
</td>
<td></td>
<td align="right">8100<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.162.22"></a><var>162.22</var><br/>
</td>
<td align="right">4425<br/>
</td>
<td></td>
<td align="right">8200<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.162.23"></a><var>162.23</var><br/>
</td>
<td align="right">4479<br/>
</td>
<td></td>
<td align="right">8300<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.162.24"></a><var>162.24</var><br/>
</td>
<td align="center" colspan="2" valign="top">Effective beginning December 31, 2009<br/>
</td>
<td></td>
<td></td>
</tr>
<tr>
<td><a id="pl.162.25"></a><var>162.25</var><br/>
</td>
<td align="right">4533<br/>
</td>
<td></td>
<td align="right">8400<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.162.26"></a><var>162.26</var><br/>
</td>
<td align="right">4587<br/>
</td>
<td></td>
<td align="right">8500<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.162.27"></a><var>162.27</var><br/>
</td>
<td align="right">4641<br/>
</td>
<td></td>
<td align="right">8600<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.162.28"></a><var>162.28</var><br/>
</td>
<td align="right">4695<br/>
</td>
<td></td>
<td align="right">8700<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.162.29"></a><var>162.29</var><br/>
</td>
<td align="right">4749<br/>
</td>
<td></td>
<td align="right">8800<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.162.30"></a><var>162.30</var><br/>
</td>
<td align="right">4803<br/>
</td>
<td></td>
<td align="right">8900<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.162.31"></a><var>162.31</var><br/>
</td>
<td align="right">4857<br/>
</td>
<td></td>
<td align="right">9000<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.162.32"></a><var>162.32</var><br/>
</td>
<td align="right">4911<br/>
</td>
<td></td>
<td align="right">9100<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.162.33"></a><var>162.33</var><br/>
</td>
<td align="center" colspan="2" valign="top">Effective beginning December 31, 2010<br/>
</td>
<td></td>
<td></td>
</tr>
<tr>
<td><a id="pl.162.34"></a><var>162.34</var><br/>
</td>
<td align="right">4965<br/>
</td>
<td></td>
<td align="right">9200<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.162.35"></a><var>162.35</var><br/>
</td>
<td align="right">5019<br/>
</td>
<td></td>
<td align="right">9300<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.162.36"></a><var>162.36</var><br/>
</td>
<td align="right">5073<br/>
</td>
<td></td>
<td align="right">9400<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.162.37"></a><var>162.37</var><br/>
</td>
<td align="right">5127<br/>
</td>
<td></td>
<td align="right">9500<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.162.38"></a><var>162.38</var><br/>
</td>
<td align="right">5181<br/>
</td>
<td></td>
<td align="right">9600<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.162.39"></a><var>162.39</var><br/>
</td>
<td align="right">5235<br/>
</td>
<td></td>
<td align="right">9700<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.162.40"></a><var>162.40</var><br/>
</td>
<td align="right">5289<br/>
</td>
<td></td>
<td align="right">9800<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.162.41"></a><var>162.41</var><br/>
</td>
<td align="right">5343<br/>
</td>
<td></td>
<td align="right">9900<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.162.42"></a><var>162.42</var><br/>
</td>
<td align="right">5397<br/>
</td>
<td></td>
<td align="right">10,000<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.163.1"></a><var>163.1</var><br/>
</td>
<td align="right">any amount in excess of<br/>
</td>
<td></td>
<td align="right"></td>
<td></td>
</tr>
<tr>
<td><a id="pl.163.2"></a><var>163.2</var><br/>
</td>
<td align="right">5397<br/>
</td>
<td></td>
<td align="right">10,000<br/>
</td>
<td></td>
</tr>
</table><a id="pl.163.3"></a><var>163.3</var>    (e) For a defined benefit relief association in which the governing bylaws provide <br/>
<a id="pl.163.4"></a><var>163.4</var>for a monthly benefit service pension as an alternative form of service pension payment <br/>
<a id="pl.163.5"></a><var>163.5</var>to a lump-sum service pension, the maximum service pension amount for each pension <br/>
<a id="pl.163.6"></a><var>163.6</var>payment type must be determined using the applicable table contained in this subdivision.<br/>
<a id="pl.163.7"></a><var>163.7</var>    (f) If a defined benefit relief association establishes a service pension in compliance <br/>
<a id="pl.163.8"></a><var>163.8</var>with the applicable maximum contained in paragraph (c) or (d) and the minimum average <br/>
<a id="pl.163.9"></a><var>163.9</var>amount of available financing per active covered firefighter is subsequently reduced <br/>
<a id="pl.163.10"></a><var>163.10</var>because of a reduction in fire state aid or because of an increase in the number of active <br/>
<a id="pl.163.11"></a><var>163.11</var>firefighters, the relief association may continue to provide the prior service pension <br/>
<a id="pl.163.12"></a><var>163.12</var>amount specified in its bylaws, but may not increase the service pension amount until <br/>
<a id="pl.163.13"></a><var>163.13</var>the minimum average amount of available financing per firefighter under the table in <br/>
<a id="pl.163.14"></a><var>163.14</var>paragraph (c) or (d), whichever applies, permits.<br/>
<a id="pl.163.15"></a><var>163.15</var>    (g) No defined benefit relief association is authorized to provide a service pension in <br/>
<a id="pl.163.16"></a><var>163.16</var>an amount greater than the largest applicable flexible service pension maximum amount <br/>
<a id="pl.163.17"></a><var>163.17</var>even if the amount of available financing per firefighter is greater than the financing <br/>
<a id="pl.163.18"></a><var>163.18</var>amount associated with the largest applicable flexible service pension maximum.<br/>
<a id="pl.163.19"></a><var>163.19</var>(h) The method of calculating service pensions must be applied uniformly for all <br/>
<a id="pl.163.20"></a><var>163.20</var>years of active service. Credit must be given for all years of active service except for caps <br/>
<a id="pl.163.21"></a><var>163.21</var>on service credit if so provided in the bylaws of the relief association.<br/>
<a id="pl.163.22"></a><var>163.22</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2009.<br/>
<br/>
<a id="bill.10.27.0"></a><a id="pl.163.23"></a><var>163.23</var>    Sec. 27. Minnesota Statutes 2008, section 424A.02, subdivision 3a, is amended to read:<br/>
<a id="pl.163.24"></a><var>163.24</var>    Subd. 3a. <b>Penalty for paying pension greater than applicable maximum.</b> (a) <br/>
<a id="pl.163.25"></a><var>163.25</var>If a defined benefit relief association pays a service pension greater than the maximum <br/>
<a id="pl.163.26"></a><var>163.26</var>service pension associated with the applicable average amount of available financing per <br/>
<a id="pl.163.27"></a><var>163.27</var>active covered firefighter under the table in subdivision 3, paragraph (c) or (d), whichever <br/>
<a id="pl.163.28"></a><var>163.28</var>applies, the maximum service pension under subdivision 3, paragraph (f), or the applicable <br/>
<a id="pl.163.29"></a><var>163.29</var>maximum service pension amount specified in subdivision 3, paragraph (g), whichever is <br/>
<a id="pl.163.30"></a><var>163.30</var>less, the state auditor shall:<br/>
<a id="pl.163.31"></a><var>163.31</var>(1) disqualify the municipality or the nonprofit firefighting corporation associated <br/>
<a id="pl.163.32"></a><var>163.32</var>with the relief association from receiving fire state aid by making the appropriate <br/>
<a id="pl.163.33"></a><var>163.33</var>notification to the municipality and the commissioner of revenue, with the disqualification <br/>
<a id="pl.163.34"></a><var>163.34</var>applicable for the next apportionment and payment of fire state aid; and<br/>
<a id="pl.164.1"></a><var>164.1</var>(2) order the treasurer of the applicable relief association to recover the amount of <br/>
<a id="pl.164.2"></a><var>164.2</var>the overpaid service pension or pensions from any retired firefighter who received an <br/>
<a id="pl.164.3"></a><var>164.3</var>overpayment.<br/>
<a id="pl.164.4"></a><var>164.4</var>(b) Fire state aid amounts from disqualified municipalities for the period of <br/>
<a id="pl.164.5"></a><var>164.5</var>disqualifications under paragraph (a), clause (1), must be credited to the amount of <br/>
<a id="pl.164.6"></a><var>164.6</var>fire insurance premium tax proceeds available for the next subsequent fire state aid <br/>
<a id="pl.164.7"></a><var>164.7</var>apportionment.<br/>
<a id="pl.164.8"></a><var>164.8</var>(c) The amount of any overpaid service pension recovered under paragraph (a), <br/>
<a id="pl.164.9"></a><var>164.9</var>clause (2), must be credited to the amount of fire insurance premium tax proceeds <br/>
<a id="pl.164.10"></a><var>164.10</var>available for the next subsequent fire state aid apportionment.<br/>
<a id="pl.164.11"></a><var>164.11</var>(d) The determination of the state auditor that a relief association has paid a service <br/>
<a id="pl.164.12"></a><var>164.12</var>pension greater than the applicable maximum must be made on the basis of the information <br/>
<a id="pl.164.13"></a><var>164.13</var>filed by the relief association and the municipality with the state auditor under sections <br/>
<statute_ref><a id="pl.164.14"></a><var>164.14</var>69.011, subdivision 2
         </statute_ref>, and 
         <statute_ref>69.051, subdivision 1</statute_ref> or 1a, whichever applies, and any other <br/>
<a id="pl.164.15"></a><var>164.15</var>relevant information that comes to the attention of the state auditor. The determination <br/>
<a id="pl.164.16"></a><var>164.16</var>of the state auditor is final. An aggrieved municipality, relief association, or person may <br/>
<a id="pl.164.17"></a><var>164.17</var>appeal the determination under section 
         <statute_ref>480A.06</statute_ref>.<br/>
<a id="pl.164.18"></a><var>164.18</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2009.<br/>
<br/>
<a id="bill.10.28.0"></a><a id="pl.164.19"></a><var>164.19</var>    Sec. 28. Minnesota Statutes 2008, section 424A.02, subdivision 7, is amended to read:<br/>
<a id="pl.164.20"></a><var>164.20</var>    Subd. 7. <b>Deferred service pensions.</b> (a) A member of a defined benefit relief <br/>
<a id="pl.164.21"></a><var>164.21</var>association is entitled to a deferred service pension if the member:<br/>
<a id="pl.164.22"></a><var>164.22</var>    (1) has completed the lesser of either the minimum period of active service with <br/>
<a id="pl.164.23"></a><var>164.23</var>the fire department specified in the bylaws or 20 years of active service with the fire <br/>
<a id="pl.164.24"></a><var>164.24</var>department;<br/>
<a id="pl.164.25"></a><var>164.25</var>    (2) has completed at least five years of active membership in the relief association; <br/>
<a id="pl.164.26"></a><var>164.26</var>and<br/>
<a id="pl.164.27"></a><var>164.27</var>    (3) separates from active service and membership before reaching age 50 or the <br/>
<a id="pl.164.28"></a><var>164.28</var>minimum age for retirement and commencement of a service pension specified in the <br/>
<a id="pl.164.29"></a><var>164.29</var>bylaws governing the relief association if that age is greater than age 50.<br/>
<a id="pl.164.30"></a><var>164.30</var>    (b) The deferred service pension is payable when the former member reaches age <br/>
<a id="pl.164.31"></a><var>164.31</var>50, or the minimum age specified in the bylaws governing the relief association if that age <br/>
<a id="pl.164.32"></a><var>164.32</var>is greater than age 50, and when the former member makes a valid written application.<br/>
<a id="pl.164.33"></a><var>164.33</var>    (c) A defined benefit relief association that provides a lump-sum service pension <br/>
<a id="pl.164.34"></a><var>164.34</var>governed by subdivision 3 may, when its governing bylaws so provide, pay interest on the <br/>
<a id="pl.165.1"></a><var>165.1</var>deferred lump-sum service pension during the period of deferral. If provided for in the <br/>
<a id="pl.165.2"></a><var>165.2</var>bylaws, interest must be paid in one of the following manners:<br/>
<a id="pl.165.3"></a><var>165.3</var>    (1) at the investment performance rate actually earned on that portion of the assets <br/>
<a id="pl.165.4"></a><var>165.4</var>if the deferred benefit amount is invested by the relief association in a separate account <br/>
<a id="pl.165.5"></a><var>165.5</var>established and maintained by the relief association or if the deferred benefit amount is <br/>
<a id="pl.165.6"></a><var>165.6</var>invested in a separate investment vehicle held by the relief association; or<br/>
<a id="pl.165.7"></a><var>165.7</var>    (2) at an interest rate of up to five percent, compounded annually, as set by the board <br/>
<a id="pl.165.8"></a><var>165.8</var>of directors and approved as provided in subdivision 10.<br/>
<a id="pl.165.9"></a><var>165.9</var>    (d) Interest under paragraph (c), clause (2), is payable following the date on which <br/>
<a id="pl.165.10"></a><var>165.10</var>the municipality has approved the deferred service pension interest rate established by <br/>
<a id="pl.165.11"></a><var>165.11</var>the board of trustees.<br/>
<a id="pl.165.12"></a><var>165.12</var>    (e) A relief association that provides a defined contribution service pension may, <br/>
<a id="pl.165.13"></a><var>165.13</var>if its governing bylaws so provide, credit interest or additional investment performance <br/>
<a id="pl.165.14"></a><var>165.14</var>on the deferred lump-sum service pension during the period of deferral. If provided for <br/>
<a id="pl.165.15"></a><var>165.15</var>in the bylaws, the interest must be paid in one of the manners specified in paragraph <br/>
<a id="pl.165.16"></a><var>165.16</var>(c) or alternatively the relief association may credit any investment return on the assets <br/>
<a id="pl.165.17"></a><var>165.17</var>of the special fund of the defined contribution volunteer firefighter relief association in <br/>
<a id="pl.165.18"></a><var>165.18</var>proportion to the share of the assets of the special fund to the credit of each individual <br/>
<a id="pl.165.19"></a><var>165.19</var>deferred member account through the date on which the investment return is recognized <br/>
<a id="pl.165.20"></a><var>165.20</var>by and credited to the special fund.<br/>
<a id="pl.165.21"></a><var>165.21</var>    (f) (e) For a deferred service pension that is transferred to a separate account <br/>
<a id="pl.165.22"></a><var>165.22</var>established and maintained by the relief association or separate investment vehicle held <br/>
<a id="pl.165.23"></a><var>165.23</var>by the relief association, the deferred member bears the full investment risk subsequent <br/>
<a id="pl.165.24"></a><var>165.24</var>to transfer and in calculating the accrued liability of the volunteer firefighters relief <br/>
<a id="pl.165.25"></a><var>165.25</var>association that pays a lump-sum service pension, the accrued liability for deferred service <br/>
<a id="pl.165.26"></a><var>165.26</var>pensions is equal to the separate relief association account balance or the fair market value <br/>
<a id="pl.165.27"></a><var>165.27</var>of the separate investment vehicle held by the relief association.<br/>
<a id="pl.165.28"></a><var>165.28</var>    (g) (f) The deferred service pension is governed by and must be calculated under <br/>
<a id="pl.165.29"></a><var>165.29</var>the general statute, special law, relief association articles of incorporation, and relief <br/>
<a id="pl.165.30"></a><var>165.30</var>association bylaw provisions applicable on the date on which the member separated from <br/>
<a id="pl.165.31"></a><var>165.31</var>active service with the fire department and active membership in the relief association.<br/>
<a id="pl.165.32"></a><var>165.32</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2009.<br/>
<br/>
<a id="bill.10.29.0"></a><a id="pl.165.33"></a><var>165.33</var>    Sec. 29. Minnesota Statutes 2008, section 424A.02, subdivision 8, is amended to read:<br/>
<a id="pl.165.34"></a><var>165.34</var>    Subd. 8. <b>Lump-sum service pensions; installment payments.</b> (a) Any A defined <br/>
<a id="pl.165.35"></a><var>165.35</var>benefit relief association, if the governing bylaws so provide, may pay, at the option of the <br/>
<a id="pl.166.1"></a><var>166.1</var>retiring member intended recipient and in lieu of a single payment of a lump-sum service <br/>
<a id="pl.166.2"></a><var>166.2</var>pension or survivor benefit, a lump-sum service pension or survivor benefit in installments.<br/>
<a id="pl.166.3"></a><var>166.3</var>(b) The election of installment payments shall be is irrevocable and shall must be <br/>
<a id="pl.166.4"></a><var>166.4</var>made by the retiring member intended recipient in writing and filed with the secretary of <br/>
<a id="pl.166.5"></a><var>166.5</var>the relief association no later than 30 days prior to before the commencement of payment <br/>
<a id="pl.166.6"></a><var>166.6</var>of the service pension or survivor benefit. The amount of the installment payments shall <br/>
<a id="pl.166.7"></a><var>166.7</var>must be determined so that the present value of the aggregate installment payments <br/>
<a id="pl.166.8"></a><var>166.8</var>computed at an interest rate of five percent, compounded annually, is equal to the amount <br/>
<a id="pl.166.9"></a><var>166.9</var>of the single lump-sum payment which would have been made had the installment <br/>
<a id="pl.166.10"></a><var>166.10</var>payments option not been elected. The payment of each installment shall include interest <br/>
<a id="pl.166.11"></a><var>166.11</var>at the rate of five percent, compounded annually on the reserve supporting the remaining <br/>
<a id="pl.166.12"></a><var>166.12</var>installment payments as of the date on which the previous installment payment was paid <br/>
<a id="pl.166.13"></a><var>166.13</var>and computed from the date on which the previous installment payment was paid to the <br/>
<a id="pl.166.14"></a><var>166.14</var>date of payment for the current installment payment in any reasonable manner provided <br/>
<a id="pl.166.15"></a><var>166.15</var>for in the governing bylaws, but the total amount of installment payments may not exceed <br/>
<a id="pl.166.16"></a><var>166.16</var>the single payment service pension amount plus interest at an annual rate of five percent <br/>
<a id="pl.166.17"></a><var>166.17</var>on the amount of delayed payments for the period during which payment was delayed.<br/>
<a id="pl.166.18"></a><var>166.18</var>(c) To the extent that the commissioner of commerce deems it to be necessary or <br/>
<a id="pl.166.19"></a><var>166.19</var>practical, the commissioner may specify and issue procedures, forms or mathematical <br/>
<a id="pl.166.20"></a><var>166.20</var>tables for use in performing the calculations required pursuant to this subdivision.<br/>
<a id="pl.166.21"></a><var>166.21</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2009.<br/>
<br/>
<a id="bill.10.30.0"></a><a id="pl.166.22"></a><var>166.22</var>    Sec. 30. Minnesota Statutes 2008, section 424A.02, subdivision 9, is amended to read:<br/>
<a id="pl.166.23"></a><var>166.23</var>    Subd. 9. <b>Limitation on ancillary benefits.</b> Any A defined benefit relief association, <br/>
<a id="pl.166.24"></a><var>166.24</var>including any volunteer firefighters relief association governed by section 
         <statute_ref>69.77</statute_ref> or any <br/>
<a id="pl.166.25"></a><var>166.25</var>volunteer firefighters division of a relief association governed by chapter 424, may only <br/>
<a id="pl.166.26"></a><var>166.26</var>pay ancillary benefits which would constitute an authorized disbursement as specified in <br/>
<a id="pl.166.27"></a><var>166.27</var>section 
         <statute_ref>424A.05</statute_ref> subject to the following requirements or limitations:<br/>
<a id="pl.166.28"></a><var>166.28</var>    (1) with respect to a defined benefit relief association in which governing bylaws <br/>
<a id="pl.166.29"></a><var>166.29</var>provide for a lump-sum service pension to a retiring member, no ancillary benefit may <br/>
<a id="pl.166.30"></a><var>166.30</var>be paid to any former member or paid to any person on behalf of any former member <br/>
<a id="pl.166.31"></a><var>166.31</var>after the former member (i) terminates active service with the fire department and active <br/>
<a id="pl.166.32"></a><var>166.32</var>membership in the relief association; and (ii) commences receipt of a service pension as <br/>
<a id="pl.166.33"></a><var>166.33</var>authorized under this section; and<br/>
<a id="pl.166.34"></a><var>166.34</var>    (2) with respect to any defined benefit relief association, no ancillary benefit paid or <br/>
<a id="pl.166.35"></a><var>166.35</var>payable to any member, to any former member, or to any person on behalf of any member <br/>
<a id="pl.167.1"></a><var>167.1</var>or former member, may exceed in amount the total earned service pension of the member <br/>
<a id="pl.167.2"></a><var>167.2</var>or former member. The total earned service pension must be calculated by multiplying <br/>
<a id="pl.167.3"></a><var>167.3</var>the service pension amount specified in the bylaws of the relief association at the time of <br/>
<a id="pl.167.4"></a><var>167.4</var>death or disability, whichever applies, by the years of service credited to the member or <br/>
<a id="pl.167.5"></a><var>167.5</var>former member. The years of service must be determined as of (i) the date the member or <br/>
<a id="pl.167.6"></a><var>167.6</var>former member became entitled to the ancillary benefit; or (ii) the date the member or <br/>
<a id="pl.167.7"></a><var>167.7</var>former member died entitling a survivor or the estate of the member or former member to <br/>
<a id="pl.167.8"></a><var>167.8</var>an ancillary benefit. The ancillary benefit must be calculated without regard to whether the <br/>
<a id="pl.167.9"></a><var>167.9</var>member had attained the minimum amount of service and membership credit specified in <br/>
<a id="pl.167.10"></a><var>167.10</var>the governing bylaws. For active members, the amount of a permanent disability benefit <br/>
<a id="pl.167.11"></a><var>167.11</var>or a survivor benefit must be equal to the member's total earned service pension except <br/>
<a id="pl.167.12"></a><var>167.12</var>that the bylaws of any a defined benefit relief association may provide for the payment of <br/>
<a id="pl.167.13"></a><var>167.13</var>a survivor benefit in an amount not to exceed five times the yearly service pension amount <br/>
<a id="pl.167.14"></a><var>167.14</var>specified in the bylaws on behalf of any member who dies before having performed five <br/>
<a id="pl.167.15"></a><var>167.15</var>years of active service in the fire department with which the relief association is affiliated.<br/>
<a id="pl.167.16"></a><var>167.16</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2009.<br/>
<br/>
<a id="bill.10.31.0"></a><a id="pl.167.17"></a><var>167.17</var>    Sec. 31. Minnesota Statutes 2008, section 424A.02, subdivision 9a, is amended to read:<br/>
<a id="pl.167.18"></a><var>167.18</var>    Subd. 9a. <b>Postretirement increases.</b> Notwithstanding any provision of general or <br/>
<a id="pl.167.19"></a><var>167.19</var>special law to the contrary, a defined benefit relief association paying a monthly service <br/>
<a id="pl.167.20"></a><var>167.20</var>pension may provide a postretirement increase to retired members and ancillary benefit <br/>
<a id="pl.167.21"></a><var>167.21</var>recipients of the relief association if (1) the relief association adopts an appropriate bylaw <br/>
<a id="pl.167.22"></a><var>167.22</var>amendment; and (2) the bylaw amendment is approved by the municipality pursuant to <br/>
<a id="pl.167.23"></a><var>167.23</var>subdivision 10 and section 
         <statute_ref>69.773, subdivision 6</statute_ref>. The postretirement increase shall be <br/>
<a id="pl.167.24"></a><var>167.24</var>is applicable only to retired members and ancillary benefit recipients receiving a service <br/>
<a id="pl.167.25"></a><var>167.25</var>pension or ancillary benefit as of the effective date of the bylaw amendment. The authority <br/>
<a id="pl.167.26"></a><var>167.26</var>to provide a postretirement increase to retired members and ancillary benefit recipients <br/>
<a id="pl.167.27"></a><var>167.27</var>of a relief association contained in this subdivision shall supersede supersedes any prior <br/>
<a id="pl.167.28"></a><var>167.28</var>special law authorization relating to the provision of postretirement increases.<br/>
<a id="pl.167.29"></a><var>167.29</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2009.<br/>
<br/>
<a id="bill.10.32.0"></a><a id="pl.167.30"></a><var>167.30</var>    Sec. 32. Minnesota Statutes 2008, section 424A.02, subdivision 9b, is amended to read:<br/>
<a id="pl.167.31"></a><var>167.31</var>    Subd. 9b. <b>Repayment of service pension in certain instances.</b> If a retired <br/>
<a id="pl.167.32"></a><var>167.32</var>volunteer firefighter does not permanently separate from active firefighting service as <br/>
<a id="pl.167.33"></a><var>167.33</var>required by subdivision 1 and section 
         <statute_ref>424A.001, subdivision 9</statute_ref>, by resuming active service <br/>
<a id="pl.168.1"></a><var>168.1</var>as a firefighter in the same volunteer fire department or as a person in charge of firefighters <br/>
<a id="pl.168.2"></a><var>168.2</var>in the same volunteer fire department, no additional service pension amount is payable <br/>
<a id="pl.168.3"></a><var>168.3</var>to the person, no additional service is creditable to the person, and the person shall must <br/>
<a id="pl.168.4"></a><var>168.4</var>repay to the defined benefit relief association any previously received service pension.<br/>
<a id="pl.168.5"></a><var>168.5</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2009.<br/>
<br/>
<a id="bill.10.33.0"></a><a id="pl.168.6"></a><var>168.6</var>    Sec. 33. Minnesota Statutes 2008, section 424A.02, subdivision 10, is amended to read:<br/>
<a id="pl.168.7"></a><var>168.7</var>    Subd. 10. <b>Local approval of bylaw amendments; filing requirements.</b> (a) Each <br/>
<a id="pl.168.8"></a><var>168.8</var>defined benefit relief association to which this section applies shall must file a revised <br/>
<a id="pl.168.9"></a><var>168.9</var>copy of its governing bylaws with the state auditor upon the adoption of any amendment <br/>
<a id="pl.168.10"></a><var>168.10</var>to its governing bylaws by the relief association or upon the approval of any amendment <br/>
<a id="pl.168.11"></a><var>168.11</var>to its governing bylaws granted by the governing body of each municipality served by the <br/>
<a id="pl.168.12"></a><var>168.12</var>fire department to which the relief association is directly associated. Failure of the relief <br/>
<a id="pl.168.13"></a><var>168.13</var>association to file a copy of the bylaws or any bylaw amendments with the state auditor <br/>
<a id="pl.168.14"></a><var>168.14</var>shall disqualify disqualifies the municipality from the distribution of any future fire state <br/>
<a id="pl.168.15"></a><var>168.15</var>aid until this filing requirement has been completed.<br/>
<a id="pl.168.16"></a><var>168.16</var>(b) If the special fund of the relief association does not have a surplus over full <br/>
<a id="pl.168.17"></a><var>168.17</var>funding pursuant to under section 
         <statute_ref>69.772, subdivision 3</statute_ref>, clause (2), subclause (e), or <br/>
<statute_ref><a id="pl.168.18"></a><var>168.18</var>69.773, subdivision 4
         </statute_ref>, and if the municipality is required to provide financial support to <br/>
<a id="pl.168.19"></a><var>168.19</var>the special fund of the relief association pursuant to under section 
         <statute_ref>69.772</statute_ref> or 
         <statute_ref>69.773</statute_ref>, no <br/>
<a id="pl.168.20"></a><var>168.20</var>bylaw amendment which would affect the amount of, the manner of payment of, or the <br/>
<a id="pl.168.21"></a><var>168.21</var>conditions for qualification for service pensions or ancillary benefits or disbursements <br/>
<a id="pl.168.22"></a><var>168.22</var>other than administrative expenses authorized pursuant to under section 
         <statute_ref>69.80</statute_ref> payable <br/>
<a id="pl.168.23"></a><var>168.23</var>from the special fund of the relief association shall be is effective until it has been ratified <br/>
<a id="pl.168.24"></a><var>168.24</var>by the governing body or bodies of the appropriate municipalities. If the municipality is <br/>
<a id="pl.168.25"></a><var>168.25</var>not required to provide financial support to the special fund pursuant to under this section, <br/>
<a id="pl.168.26"></a><var>168.26</var>the relief association may adopt or amend without municipal ratification its articles <br/>
<a id="pl.168.27"></a><var>168.27</var>of incorporation or bylaws which increase or otherwise affect the service pensions or <br/>
<a id="pl.168.28"></a><var>168.28</var>ancillary benefits payable from the special fund so long as the changes do not cause the <br/>
<a id="pl.168.29"></a><var>168.29</var>amount of the resulting increase in the accrued liability of the special fund to exceed 90 <br/>
<a id="pl.168.30"></a><var>168.30</var>percent of the amount of the prior surplus over full funding reported in the prior year and <br/>
<a id="pl.168.31"></a><var>168.31</var>the changes do not result in the financial requirements of the special fund exceeding the <br/>
<a id="pl.168.32"></a><var>168.32</var>expected amount of the future subsequent calendar year's fire state aid to be received <br/>
<a id="pl.168.33"></a><var>168.33</var>by the relief association.<br/>
<a id="pl.168.34"></a><var>168.34</var>(c) If the relief association pays only a lump-sum pension, the financial requirements <br/>
<a id="pl.168.35"></a><var>168.35</var>are to be determined by the board of trustees following the preparation of an estimate <br/>
<a id="pl.169.1"></a><var>169.1</var>of the expected increase in the accrued liability and annual accruing liability of the <br/>
<a id="pl.169.2"></a><var>169.2</var>relief association attributable to the change. If the relief association pays a monthly <br/>
<a id="pl.169.3"></a><var>169.3</var>benefit service pension, the financial requirements are to be determined by the board of <br/>
<a id="pl.169.4"></a><var>169.4</var>trustees following either an updated actuarial valuation including the proposed change <br/>
<a id="pl.169.5"></a><var>169.5</var>or an estimate of the expected actuarial impact of the proposed change prepared by the <br/>
<a id="pl.169.6"></a><var>169.6</var>actuary of the relief association. If a relief association adopts or amends its articles of <br/>
<a id="pl.169.7"></a><var>169.7</var>incorporation or bylaws without municipal ratification pursuant to under this subdivision, <br/>
<a id="pl.169.8"></a><var>169.8</var>and, subsequent to the amendment or adoption, the financial requirements of the special <br/>
<a id="pl.169.9"></a><var>169.9</var>fund pursuant to under this section are such so as to require financial support from the <br/>
<a id="pl.169.10"></a><var>169.10</var>municipality, the provision which was implemented without municipal ratification shall is <br/>
<a id="pl.169.11"></a><var>169.11</var>no longer be effective without municipal ratification, and any service pensions or ancillary <br/>
<a id="pl.169.12"></a><var>169.12</var>benefits payable after that date shall must be paid only in accordance with the articles of <br/>
<a id="pl.169.13"></a><var>169.13</var>incorporation or bylaws as amended or adopted with municipal ratification.<br/>
<a id="pl.169.14"></a><var>169.14</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2009.<br/>
<br/>
<a id="bill.10.34.0"></a><a id="pl.169.15"></a><var>169.15</var>    Sec. 34. Minnesota Statutes 2008, section 424A.02, subdivision 12, is amended to read:<br/>
<a id="pl.169.16"></a><var>169.16</var>    Subd. 12. <b>Transfer of service credit to new district.</b> Notwithstanding the <br/>
<a id="pl.169.17"></a><var>169.17</var>requirements of subdivision 1 or any other law, a member of a fire department which is <br/>
<a id="pl.169.18"></a><var>169.18</var>disbanded upon formation of a fire district to serve substantially the same geographic <br/>
<a id="pl.169.19"></a><var>169.19</var>area, who serves as an active firefighter with the new district fire department, and is a <br/>
<a id="pl.169.20"></a><var>169.20</var>member of the district firefighters' defined benefit relief association shall be is entitled <br/>
<a id="pl.169.21"></a><var>169.21</var>to a nonforfeitable service pension from the new relief association upon completion of <br/>
<a id="pl.169.22"></a><var>169.22</var>a combined total of 20 years active service in the disbanded and the new departments. <br/>
<a id="pl.169.23"></a><var>169.23</var>The amount of the service pension shall be is based upon years of service in the new <br/>
<a id="pl.169.24"></a><var>169.24</var>department only, and shall must be in an amount equal to the accrued liability for the <br/>
<a id="pl.169.25"></a><var>169.25</var>appropriate years of service calculated in accordance with section 
         <statute_ref>69.772, subdivision 2</statute_ref>.<br/>
<br/>
<a id="bill.10.35.0"></a><a id="pl.169.26"></a><var>169.26</var>    Sec. 35. Minnesota Statutes 2008, section 424A.02, subdivision 13, is amended to read:<br/>
<a id="pl.169.27"></a><var>169.27</var>    Subd. 13. <b>Combined service pensions.</b> (a) If the articles of incorporation or bylaws <br/>
<a id="pl.169.28"></a><var>169.28</var>of the defined benefit relief associations so provide, a volunteer firefighter with credit for <br/>
<a id="pl.169.29"></a><var>169.29</var>service as an active firefighter in more than one defined benefit volunteer firefighters relief <br/>
<a id="pl.169.30"></a><var>169.30</var>association is entitled, when the applicable requirements of paragraph (b) are met and <br/>
<a id="pl.169.31"></a><var>169.31</var>when otherwise qualified, to a prorated service credit from each relief association.<br/>
<a id="pl.169.32"></a><var>169.32</var>(b) A volunteer firefighter receiving a prorated service pension under this subdivision <br/>
<a id="pl.169.33"></a><var>169.33</var>must have a total amount of service credit of ten years or more, if the bylaws of every <br/>
<a id="pl.169.34"></a><var>169.34</var>affected relief association does do not require specify only a five-year service vesting <br/>
<a id="pl.170.1"></a><var>170.1</var>requirement, or five years or more, if the bylaws of every affected relief association <br/>
<a id="pl.170.2"></a><var>170.2</var>requires require only a five-year service vesting requirement, as a member of two or more <br/>
<a id="pl.170.3"></a><var>170.3</var>relief associations otherwise qualified. The member must have one year or more of service <br/>
<a id="pl.170.4"></a><var>170.4</var>credit in each relief association. The prorated service pension must be based on the service <br/>
<a id="pl.170.5"></a><var>170.5</var>pension amount in effect for the relief association on the date on which active volunteer <br/>
<a id="pl.170.6"></a><var>170.6</var>firefighting services covered by that relief association terminate. To receive a service <br/>
<a id="pl.170.7"></a><var>170.7</var>pension under this subdivision, the firefighter must become a member of the second or <br/>
<a id="pl.170.8"></a><var>170.8</var>succeeding association and must give notice of membership to the prior association within <br/>
<a id="pl.170.9"></a><var>170.9</var>two years of the date of termination of active service with the prior association. The notice <br/>
<a id="pl.170.10"></a><var>170.10</var>must be attested to by the second or subsequent relief association secretary.<br/>
<a id="pl.170.11"></a><var>170.11</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2009.<br/>
<br/>
<a id="bill.10.36.0"></a><a id="pl.170.12"></a><var>170.12</var>    Sec. 36. Minnesota Statutes 2008, section 424A.021, is amended to read:<br/>
<a id="pl.170.13"></a><var>170.13</var><b>424A.021 CREDIT FOR BREAK IN SERVICE TO PROVIDE UNIFORMED </b><br/>
<a id="pl.170.14"></a><var>170.14</var><b>SERVICE.</b><br/>
<a id="pl.170.15"></a><var>170.15</var>    Subdivision 1. <b>Authorization.</b> Subject to restrictions stated in this section, a <br/>
<a id="pl.170.16"></a><var>170.16</var>volunteer firefighter who is absent from firefighting service due to service in the uniformed <br/>
<a id="pl.170.17"></a><var>170.17</var>services, as defined in United States Code, title 38, section 4303(13), may obtain service <br/>
<a id="pl.170.18"></a><var>170.18</var>credit if the relief association is a defined benefit plan or an allocation of any fire state <br/>
<a id="pl.170.19"></a><var>170.19</var>aid, any municipal contributions, and any investment return received by the relief <br/>
<a id="pl.170.20"></a><var>170.20</var>association as though the person was an active member if the relief association is a defined <br/>
<a id="pl.170.21"></a><var>170.21</var>contribution plan for the period of the uniformed service, not to exceed five years, unless a <br/>
<a id="pl.170.22"></a><var>170.22</var>longer period is required under United States Code, title 38, section 4312.<br/>
<a id="pl.170.23"></a><var>170.23</var>    Subd. 2. <b>Limitations.</b> (a) To be eligible for service credit or an investment return <br/>
<a id="pl.170.24"></a><var>170.24</var>allocation as though an active member under this section, the volunteer firefighter must <br/>
<a id="pl.170.25"></a><var>170.25</var>return to firefighting service with coverage by the same relief association or by the <br/>
<a id="pl.170.26"></a><var>170.26</var>successor to that relief association upon discharge from service in the uniformed service <br/>
<a id="pl.170.27"></a><var>170.27</var>within the time frame required in United States Code, title 38, section 4312(e).<br/>
<a id="pl.170.28"></a><var>170.28</var>(b) Service credit or an investment return allocation as though an active member is <br/>
<a id="pl.170.29"></a><var>170.29</var>not authorized if the firefighter separates from uniformed service with a dishonorable or <br/>
<a id="pl.170.30"></a><var>170.30</var>bad conduct discharge or under other than honorable conditions.<br/>
<a id="pl.170.31"></a><var>170.31</var>(c) Service credit or an investment return allocation as though an active member <br/>
<a id="pl.170.32"></a><var>170.32</var>is not authorized if the firefighter fails to provide notice to the fire department that the <br/>
<a id="pl.170.33"></a><var>170.33</var>individual is leaving to provide service in the uniformed service, unless it is not feasible to <br/>
<a id="pl.170.34"></a><var>170.34</var>provide that notice due to the emergency nature of the situation.<br/>
<a id="pl.171.1"></a><var>171.1</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2009.<br/>
<br/>
<a id="bill.10.37.0"></a><a id="pl.171.2"></a><var>171.2</var>    Sec. 37. Minnesota Statutes 2008, section 424A.03, is amended to read:<br/>
<a id="pl.171.3"></a><var>171.3</var><b>424A.03 UNIFORMITY OF VOLUNTEER FIREFIGHTER SERVICE </b><br/>
<a id="pl.171.4"></a><var>171.4</var><b>PENSION AND RETIREMENT BENEFITS.</b><br/>
<a id="pl.171.5"></a><var>171.5</var>    Subdivision 1. <b>Limitation on nonuniformity of pensions.</b> Every partially salaried <br/>
<a id="pl.171.6"></a><var>171.6</var>and partially volunteer firefighters' relief association shall must provide service pensions <br/>
<a id="pl.171.7"></a><var>171.7</var>to volunteer firefighter members based on the years of service of the members not on <br/>
<a id="pl.171.8"></a><var>171.8</var>the compensation paid to the members for firefighting services. Each relief association <br/>
<a id="pl.171.9"></a><var>171.9</var>shall must provide service pensions to salaried members as set forth in chapter 424 and <br/>
<a id="pl.171.10"></a><var>171.10</var>applicable special laws.<br/>
<a id="pl.171.11"></a><var>171.11</var>    Subd. 2. <b>Penalties for violations.</b> Any A municipality which has a fire department <br/>
<a id="pl.171.12"></a><var>171.12</var>to which associated with a relief association which violates the provisions of subdivision <br/>
<a id="pl.171.13"></a><var>171.13</var>1 is directly associated or which contracts with an independent nonprofit firefighting <br/>
<a id="pl.171.14"></a><var>171.14</var>corporation of which associated with a relief association which violates the provisions <br/>
<a id="pl.171.15"></a><var>171.15</var>of subdivision 1 is a subsidiary shall may not be included in the apportionment of fire <br/>
<a id="pl.171.16"></a><var>171.16</var>state aid by the commissioner of commerce to the applicable county auditor pursuant to <br/>
<a id="pl.171.17"></a><var>171.17</var>under section 
         <statute_ref>69.021, subdivision 6</statute_ref>, and shall may not be included in the apportionment <br/>
<a id="pl.171.18"></a><var>171.18</var>of fire state aid by the county auditor to the various municipalities pursuant to under <br/>
<a id="pl.171.19"></a><var>171.19</var>section 
         <statute_ref>69.021, subdivision 7</statute_ref>.<br/>
<a id="pl.171.20"></a><var>171.20</var>    Subd. 3. <b>Exception to application of limitation and penalty.</b> The limitation <br/>
<a id="pl.171.21"></a><var>171.21</var>provided for in subdivision 1 shall does not apply to any relief association which prior to <br/>
<a id="pl.171.22"></a><var>171.22</var>before January 1, 1957, had established a definite service pension formula for members <br/>
<a id="pl.171.23"></a><var>171.23</var>of the partially salaried and partially volunteer firefighters' relief association who are <br/>
<a id="pl.171.24"></a><var>171.24</var>regularly employed firefighters.<br/>
<a id="pl.171.25"></a><var>171.25</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2009.<br/>
<br/>
<a id="bill.10.38.0"></a><a id="pl.171.26"></a><var>171.26</var>    Sec. 38. Minnesota Statutes 2008, section 424A.04, is amended to read:<br/>
<a id="pl.171.27"></a><var>171.27</var><b>424A.04 VOLUNTEER RELIEF ASSOCIATIONS; BOARD OF TRUSTEES.</b><br/>
<a id="pl.171.28"></a><var>171.28</var>    Subdivision 1. <b>Membership.</b> (a) A relief association that is directly associated with <br/>
<a id="pl.171.29"></a><var>171.29</var>a municipal fire department must be managed by a board of trustees consisting of nine <br/>
<a id="pl.171.30"></a><var>171.30</var>members. Six trustees must be elected from the membership of the relief association and <br/>
<a id="pl.171.31"></a><var>171.31</var>three trustees must be drawn from the officials of the municipalities served by the fire <br/>
<a id="pl.171.32"></a><var>171.32</var>department to which the relief association is directly associated. The bylaws of a relief <br/>
<a id="pl.171.33"></a><var>171.33</var>association which provides a monthly benefit service pension may provide that one of <br/>
<a id="pl.172.1"></a><var>172.1</var>the six trustees elected from the relief association membership may be a retired member <br/>
<a id="pl.172.2"></a><var>172.2</var>receiving a monthly pension who is elected by the membership of the relief association. <br/>
<a id="pl.172.3"></a><var>172.3</var>The three municipal trustees must be one elected municipal official and one elected or <br/>
<a id="pl.172.4"></a><var>172.4</var>appointed municipal official who are designated as municipal representatives by the <br/>
<a id="pl.172.5"></a><var>172.5</var>municipal governing board annually and the chief of the municipal fire department.<br/>
<a id="pl.172.6"></a><var>172.6</var>(b) A relief association that is a subsidiary of an independent nonprofit firefighting <br/>
<a id="pl.172.7"></a><var>172.7</var>corporation must be managed by a board of trustees consisting of nine members. Six <br/>
<a id="pl.172.8"></a><var>172.8</var>trustees must be elected from the membership of the relief association, two trustees must <br/>
<a id="pl.172.9"></a><var>172.9</var>be drawn from the officials of the municipalities served by the fire department to which <br/>
<a id="pl.172.10"></a><var>172.10</var>the relief association is directly associated, and one trustee shall must be the fire chief <br/>
<a id="pl.172.11"></a><var>172.11</var>serving with the independent nonprofit firefighting corporation. The bylaws of a relief <br/>
<a id="pl.172.12"></a><var>172.12</var>association may provide that one of the six trustees elected from the relief association <br/>
<a id="pl.172.13"></a><var>172.13</var>membership may be a retired member receiving a monthly pension who is elected by the <br/>
<a id="pl.172.14"></a><var>172.14</var>membership of the relief association. The two municipal trustees must be elected or <br/>
<a id="pl.172.15"></a><var>172.15</var>appointed municipal officials, selected as follows:<br/>
<a id="pl.172.16"></a><var>172.16</var>(1) if only one municipality contracts with the independent nonprofit firefighting <br/>
<a id="pl.172.17"></a><var>172.17</var>corporation, the municipal trustees must be two officials of the contracting municipality <br/>
<a id="pl.172.18"></a><var>172.18</var>who are designated annually by the governing body of the municipality; or<br/>
<a id="pl.172.19"></a><var>172.19</var>(2) if two or more municipalities contract with the independent nonprofit corporation, <br/>
<a id="pl.172.20"></a><var>172.20</var>the municipal trustees must be one official from each of the two largest municipalities <br/>
<a id="pl.172.21"></a><var>172.21</var>in population who are designated annually by the governing bodies of the applicable <br/>
<a id="pl.172.22"></a><var>172.22</var>municipalities.<br/>
<a id="pl.172.23"></a><var>172.23</var>(c) The municipal trustees for a relief association that is directly associated with a <br/>
<a id="pl.172.24"></a><var>172.24</var>fire department operated as or by a joint powers entity must be the fire chief of the fire <br/>
<a id="pl.172.25"></a><var>172.25</var>department and two trustees designated annually by the joint powers board. The municipal <br/>
<a id="pl.172.26"></a><var>172.26</var>trustees for a relief association that is directly associated with a fire department service <br/>
<a id="pl.172.27"></a><var>172.27</var>area township must be the fire chief of the fire department and two trustees designated by <br/>
<a id="pl.172.28"></a><var>172.28</var>the township board.<br/>
<a id="pl.172.29"></a><var>172.29</var>(d) If a relief association lacks the municipal board members provided for in <br/>
<a id="pl.172.30"></a><var>172.30</var>paragraph (a), (b), or (c) because the fire department is not located in or associated with an <br/>
<a id="pl.172.31"></a><var>172.31</var>organized municipality, joint powers entity, or township, the municipal board members <br/>
<a id="pl.172.32"></a><var>172.32</var>must be the fire chief of the fire department and two board members appointed from the <br/>
<a id="pl.172.33"></a><var>172.33</var>fire department service area by the board of commissioners of the applicable county.<br/>
<a id="pl.172.34"></a><var>172.34</var>(e) The term of these the appointed municipal board members is one year or until the <br/>
<a id="pl.172.35"></a><var>172.35</var>person's successor is qualified, whichever is later.<br/>
<a id="pl.173.1"></a><var>173.1</var>(f) A municipal trustee under paragraph (a), (b), (c), or (d) has all the rights <br/>
<a id="pl.173.2"></a><var>173.2</var>and duties accorded to any other trustee, except the right to be an officer of the relief <br/>
<a id="pl.173.3"></a><var>173.3</var>association board of trustees.<br/>
<a id="pl.173.4"></a><var>173.4</var>(g) A board must have at least three officers, who are a president, a secretary and a <br/>
<a id="pl.173.5"></a><var>173.5</var>treasurer. These officers must be elected from among the elected trustees by either the full <br/>
<a id="pl.173.6"></a><var>173.6</var>board of trustees or by the relief association membership, as specified in the bylaws. In <br/>
<a id="pl.173.7"></a><var>173.7</var>no event may any trustee hold more than one officer position at any one time. The terms <br/>
<a id="pl.173.8"></a><var>173.8</var>of the elected trustees and of the officers of the board must be specified in the bylaws of <br/>
<a id="pl.173.9"></a><var>173.9</var>the relief association, but may not exceed three years. If the term of the elected trustees <br/>
<a id="pl.173.10"></a><var>173.10</var>exceeds one year, the election of the various trustees elected from the membership must be <br/>
<a id="pl.173.11"></a><var>173.11</var>staggered on as equal a basis as is practicable.<br/>
<a id="pl.173.12"></a><var>173.12</var>    Subd. 2. <b>Fiduciary duty.</b> The board of trustees of a relief association shall <br/>
<a id="pl.173.13"></a><var>173.13</var>undertake their activities consistent with chapter 356A.<br/>
<a id="pl.173.14"></a><var>173.14</var>    Subd. 2a. <b>Fiduciary responsibility.</b> In the discharge of their respective duties, the <br/>
<a id="pl.173.15"></a><var>173.15</var>officers and trustees shall be held to the standard of care specified in section 11A.09. In <br/>
<a id="pl.173.16"></a><var>173.16</var>addition, the trustees shall act in accordance with chapter 356A. Each member of the <br/>
<a id="pl.173.17"></a><var>173.17</var>board is a fiduciary and shall undertake all fiduciary activities in accordance with the <br/>
<a id="pl.173.18"></a><var>173.18</var>standard of care of section 11A.09, and in a manner consistent with chapter 356A. No <br/>
<a id="pl.173.19"></a><var>173.19</var>fiduciary of a relief association shall cause a relief association to engage in a transaction if <br/>
<a id="pl.173.20"></a><var>173.20</var>the fiduciary knows or should know that the transaction constitutes one of the following <br/>
<a id="pl.173.21"></a><var>173.21</var>direct or indirect transactions:<br/>
<a id="pl.173.22"></a><var>173.22</var>(1) sale or exchange or leasing of any real property between the relief association <br/>
<a id="pl.173.23"></a><var>173.23</var>and a board member;<br/>
<a id="pl.173.24"></a><var>173.24</var>(2) lending of money or other extension of credit between the relief association and <br/>
<a id="pl.173.25"></a><var>173.25</var>a board member or member of the relief association;<br/>
<a id="pl.173.26"></a><var>173.26</var>(3) furnishing of goods, services, or facilities between the relief association and a <br/>
<a id="pl.173.27"></a><var>173.27</var>board member; or<br/>
<a id="pl.173.28"></a><var>173.28</var>(4) transfer to a board member, or use by or for the benefit of a board member, of any <br/>
<a id="pl.173.29"></a><var>173.29</var>assets of the relief association. A transfer of assets does not mean the payment of relief <br/>
<a id="pl.173.30"></a><var>173.30</var>association benefits or administrative expenses permitted by law.<br/>
<a id="pl.173.31"></a><var>173.31</var>    Subd. 3. <b>Conditions on relief association consultants.</b> (a) If a volunteer firefighter <br/>
<a id="pl.173.32"></a><var>173.32</var>relief association hires employs or contracts with a consultant to provide legal or financial <br/>
<a id="pl.173.33"></a><var>173.33</var>advice, the secretary of the relief association shall obtain and the consultant shall provide <br/>
<a id="pl.173.34"></a><var>173.34</var>to the secretary of the relief association a copy of the consultant's certificate of insurance.<br/>
<a id="pl.174.1"></a><var>174.1</var>(b) A consultant is any person who is employed under contract to provide legal or <br/>
<a id="pl.174.2"></a><var>174.2</var>financial advice and who is or who represents to the volunteer firefighter relief association <br/>
<a id="pl.174.3"></a><var>174.3</var>that the person is:<br/>
<a id="pl.174.4"></a><var>174.4</var>(1) an actuary;<br/>
<a id="pl.174.5"></a><var>174.5</var>(2) a licensed public accountant or a certified public accountant;<br/>
<a id="pl.174.6"></a><var>174.6</var>(3) an attorney;<br/>
<a id="pl.174.7"></a><var>174.7</var>(4) an investment advisor or manager, or an investment counselor;<br/>
<a id="pl.174.8"></a><var>174.8</var>(5) an investment advisor or manager selection consultant;<br/>
<a id="pl.174.9"></a><var>174.9</var>(6) a pension benefit design advisor or consultant; or<br/>
<a id="pl.174.10"></a><var>174.10</var>(7) any other financial consultant.<br/>
<a id="pl.174.11"></a><var>174.11</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2009.<br/>
<br/>
<a id="bill.10.39.0"></a><a id="pl.174.12"></a><var>174.12</var>    Sec. 39. Minnesota Statutes 2008, section 424A.05, subdivision 1, is amended to read:<br/>
<a id="pl.174.13"></a><var>174.13</var>    Subdivision 1. <b>Establishment of special fund.</b> Every volunteer firefighters' relief <br/>
<a id="pl.174.14"></a><var>174.14</var>association shall establish and maintain a special fund within the relief association.<br/>
<a id="pl.174.15"></a><var>174.15</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2009.<br/>
<br/>
<a id="bill.10.40.0"></a><a id="pl.174.16"></a><var>174.16</var>    Sec. 40. Minnesota Statutes 2008, section 424A.05, subdivision 2, is amended to read:<br/>
<a id="pl.174.17"></a><var>174.17</var>    Subd. 2. <b>Special fund assets and revenues.</b> The special fund shall must be credited <br/>
<a id="pl.174.18"></a><var>174.18</var>with all fire state aid moneys received pursuant to under sections 
         <statute_ref>69.011</statute_ref> to 
         <statute_ref>69.051</statute_ref>, <br/>
<a id="pl.174.19"></a><var>174.19</var>all taxes levied by or other revenues received from the municipality pursuant to under <br/>
<a id="pl.174.20"></a><var>174.20</var>sections 
         <statute_ref>69.771</statute_ref> to 
         <statute_ref>69.776</statute_ref> or any applicable special law requiring municipal support for <br/>
<a id="pl.174.21"></a><var>174.21</var>the relief association, any moneys or property donated, given, granted or devised by any <br/>
<a id="pl.174.22"></a><var>174.22</var>person which is specified for use for the support of the special fund and any interest or <br/>
<a id="pl.174.23"></a><var>174.23</var>investment return earned upon the assets of the special fund. The treasurer of the relief <br/>
<a id="pl.174.24"></a><var>174.24</var>association shall be is the custodian of the assets of the special fund and shall must be the <br/>
<a id="pl.174.25"></a><var>174.25</var>recipient on behalf of the special fund of all revenues payable to the special fund. The <br/>
<a id="pl.174.26"></a><var>174.26</var>treasurer shall maintain adequate records documenting any transaction involving the assets <br/>
<a id="pl.174.27"></a><var>174.27</var>or the revenues of the special fund. These records and the bylaws of the relief association <br/>
<a id="pl.174.28"></a><var>174.28</var>shall be are public and shall must be open for inspection by any member of the relief <br/>
<a id="pl.174.29"></a><var>174.29</var>association, any officer or employee of the state or of the municipality, or any member of <br/>
<a id="pl.174.30"></a><var>174.30</var>the public, at reasonable times and places.<br/>
<a id="pl.174.31"></a><var>174.31</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2009.<br/>
<br/>
<a id="bill.10.41.0"></a><a id="pl.174.32"></a><var>174.32</var>    Sec. 41. Minnesota Statutes 2008, section 424A.05, subdivision 3, is amended to read:<br/>
<a id="pl.175.1"></a><var>175.1</var>    Subd. 3. <b>Authorized disbursements from the special fund.</b> (a) Disbursements <br/>
<a id="pl.175.2"></a><var>175.2</var>from the special fund are may not permitted to be made for any purpose other than one of <br/>
<a id="pl.175.3"></a><var>175.3</var>the following:<br/>
<a id="pl.175.4"></a><var>175.4</var>    (1) for the payment of service pensions to retired members of the relief association if <br/>
<a id="pl.175.5"></a><var>175.5</var>authorized and paid under law and the bylaws governing the relief association;<br/>
<a id="pl.175.6"></a><var>175.6</var>    (2) for the payment of temporary or permanent disability benefits to disabled <br/>
<a id="pl.175.7"></a><var>175.7</var>members of the relief association if authorized and paid pursuant to under law and <br/>
<a id="pl.175.8"></a><var>175.8</var>specified in amount in the bylaws governing the relief association;<br/>
<a id="pl.175.9"></a><var>175.9</var>    (3) for the payment of survivor benefits to surviving spouses and surviving children, <br/>
<a id="pl.175.10"></a><var>175.10</var>or if none, to designated beneficiaries, of deceased members of the relief association, and <br/>
<a id="pl.175.11"></a><var>175.11</var>if no survivors and if no designated beneficiary, for the payment of a death benefit to the <br/>
<a id="pl.175.12"></a><var>175.12</var>estate of the deceased active or deferred firefighter, if authorized by and paid pursuant to <br/>
<a id="pl.175.13"></a><var>175.13</var>under law and specified in amount in the bylaws governing the relief association;<br/>
<a id="pl.175.14"></a><var>175.14</var>    (4) for the payment of the fees, dues and assessments to the Minnesota State Fire <br/>
<a id="pl.175.15"></a><var>175.15</var>Department Association, and to the Minnesota Area Relief Association Coalition, and to <br/>
<a id="pl.175.16"></a><var>175.16</var>the state Volunteer Firefighters Benefit Association in order to entitle relief association <br/>
<a id="pl.175.17"></a><var>175.17</var>members to membership in and the benefits of these associations or organizations; and<br/>
<a id="pl.175.18"></a><var>175.18</var>(5) for the payment of insurance premiums to the state Volunteer Firefighters Benefit <br/>
<a id="pl.175.19"></a><var>175.19</var>Association, or an insurance company licensed by the state of Minnesota offering casualty <br/>
<a id="pl.175.20"></a><var>175.20</var>insurance, in order to entitle relief association members to membership in and the benefits <br/>
<a id="pl.175.21"></a><var>175.21</var>of the association or organization; and<br/>
<a id="pl.175.22"></a><var>175.22</var>    (5) (6) for the payment of administrative expenses of the relief association as <br/>
<a id="pl.175.23"></a><var>175.23</var>authorized under section 
         <statute_ref>69.80</statute_ref>. <br/>
<a id="pl.175.24"></a><var>175.24</var>    (b) For purposes of this chapter, for a monthly benefit volunteer fire relief association <br/>
<a id="pl.175.25"></a><var>175.25</var>or for a combination lump-sum and monthly benefit volunteer fire relief association where <br/>
<a id="pl.175.26"></a><var>175.26</var>a monthly benefit service pension has been elected by or a monthly benefit is payable with <br/>
<a id="pl.175.27"></a><var>175.27</var>respect to a firefighter, a designated beneficiary must be a natural person. For purposes of <br/>
<a id="pl.175.28"></a><var>175.28</var>this chapter, for a defined contribution volunteer fire relief association, for a lump-sum <br/>
<a id="pl.175.29"></a><var>175.29</var>volunteer fire relief association, or for a combination lump-sum and monthly benefit <br/>
<a id="pl.175.30"></a><var>175.30</var>volunteer fire relief association where a lump-sum service pension has been elected by <br/>
<a id="pl.175.31"></a><var>175.31</var>or a lump-sum benefit is payable with respect to a firefighter, a designated beneficiary <br/>
<a id="pl.175.32"></a><var>175.32</var>may be a trust created under chapter 501B.<br/>
<a id="pl.175.33"></a><var>175.33</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2009.<br/>
<br/>
<a id="bill.10.42.0"></a><a id="pl.175.34"></a><var>175.34</var>    Sec. 42. Minnesota Statutes 2008, section 424A.05, subdivision 4, is amended to read:<br/>
<a id="pl.176.1"></a><var>176.1</var>    Subd. 4. <b>Investments of assets of the special fund.</b> The assets of the special fund <br/>
<a id="pl.176.2"></a><var>176.2</var>shall must be invested only in securities authorized by section 
         <statute_ref>69.775</statute_ref>.<br/>
<a id="pl.176.3"></a><var>176.3</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2009.<br/>
<br/>
<a id="bill.10.43.0"></a><a id="pl.176.4"></a><var>176.4</var>    Sec. 43. Minnesota Statutes 2008, section 424A.06, is amended to read:<br/>
<a id="pl.176.5"></a><var>176.5</var><b>424A.06 RELIEF ASSOCIATION GENERAL FUND.</b><br/>
<a id="pl.176.6"></a><var>176.6</var>    Subdivision 1. <b>Establishment of general fund.</b> Any A volunteer firefighters' relief <br/>
<a id="pl.176.7"></a><var>176.7</var>association may establish and maintain a general fund within the relief association.<br/>
<a id="pl.176.8"></a><var>176.8</var>    Subd. 2. <b>General fund assets and revenues.</b> To the general fund, if established, <br/>
<a id="pl.176.9"></a><var>176.9</var>shall must be credited all moneys received from dues, fines, initiation fees, entertainment <br/>
<a id="pl.176.10"></a><var>176.10</var>revenues and any moneys or property donated, given, granted or devised by any person, <br/>
<a id="pl.176.11"></a><var>176.11</var>for unspecified uses. The treasurer of the relief association shall be is the custodian of the <br/>
<a id="pl.176.12"></a><var>176.12</var>assets of the general fund and shall must be the recipient on behalf of the general fund of <br/>
<a id="pl.176.13"></a><var>176.13</var>all revenues payable to the general fund. The treasurer shall maintain adequate records <br/>
<a id="pl.176.14"></a><var>176.14</var>documenting any transaction involving the assets or the revenues of the general fund. <br/>
<a id="pl.176.15"></a><var>176.15</var>These records shall must be open for inspection by any member of the relief association <br/>
<a id="pl.176.16"></a><var>176.16</var>at reasonable times and places.<br/>
<a id="pl.176.17"></a><var>176.17</var>    Subd. 3. <b>Authorized disbursements from the general fund.</b> Disbursements from <br/>
<a id="pl.176.18"></a><var>176.18</var>the general fund may be made for any purpose that is authorized by either the articles of <br/>
<a id="pl.176.19"></a><var>176.19</var>incorporation or bylaws of the relief association.<br/>
<a id="pl.176.20"></a><var>176.20</var>    Subd. 4. <b>Investment of assets of the general fund.</b> The assets of the general <br/>
<a id="pl.176.21"></a><var>176.21</var>fund may be invested in any securities that are authorized by the bylaws of the relief <br/>
<a id="pl.176.22"></a><var>176.22</var>association and may be certified for investment by the State Board of Investment in fixed <br/>
<a id="pl.176.23"></a><var>176.23</var>income pools or in a separately managed account at the discretion of the State Board of <br/>
<a id="pl.176.24"></a><var>176.24</var>Investment as provided in section 
         <statute_ref>11A.14</statute_ref>.<br/>
<a id="pl.176.25"></a><var>176.25</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2009.<br/>
<br/>
<a id="bill.10.44.0"></a><a id="pl.176.26"></a><var>176.26</var>    Sec. 44. Minnesota Statutes 2008, section 424A.07, is amended to read:<br/>
<a id="pl.176.27"></a><var>176.27</var><b>424A.07 NONPROFIT FIREFIGHTING CORPORATIONS; </b><br/>
<a id="pl.176.28"></a><var>176.28</var><b>ESTABLISHMENT OF RELIEF ASSOCIATIONS.</b><br/>
<a id="pl.176.29"></a><var>176.29</var>Prior to Before paying any service pensions or retirement benefits pursuant to <br/>
<a id="pl.176.30"></a><var>176.30</var>under section 
         <statute_ref>424A.02</statute_ref> or before becoming entitled to receive any amounts of fire state <br/>
<a id="pl.176.31"></a><var>176.31</var>aid upon transmittal from a contracting municipality pursuant to under section 
         <statute_ref>69.031, <br/>
<a id="pl.176.32"></a><var>176.32</var>subdivision 5
         </statute_ref>, a nonprofit firefighting corporation shall establish a volunteer firefighters' <br/>
<a id="pl.176.33"></a><var>176.33</var>relief association governed by this chapter.<br/>
<br/>
<a id="bill.10.45.0"></a><a id="pl.177.1"></a><var>177.1</var>    Sec. 45. Minnesota Statutes 2008, section 424A.08, is amended to read:<br/>
<a id="pl.177.2"></a><var>177.2</var><b>424A.08 MUNICIPALITY WITHOUT RELIEF ASSOCIATION; </b><br/>
<a id="pl.177.3"></a><var>177.3</var><b>AUTHORIZED DISBURSEMENTS.</b><br/>
<a id="pl.177.4"></a><var>177.4</var>(a) Any qualified municipality which is entitled to receive fire state aid but which <br/>
<a id="pl.177.5"></a><var>177.5</var>has no volunteer firefighters' relief association directly associated with its fire department <br/>
<a id="pl.177.6"></a><var>177.6</var>and which has no full-time firefighters with retirement coverage by the public employees <br/>
<a id="pl.177.7"></a><var>177.7</var>police and fire retirement plan shall deposit the fire state aid in a special account <br/>
<a id="pl.177.8"></a><var>177.8</var>established for that purpose in the municipal treasury. Disbursement from the special <br/>
<a id="pl.177.9"></a><var>177.9</var>account shall may not be made for any purpose except:<br/>
<a id="pl.177.10"></a><var>177.10</var>(1) payment of the fees, dues and assessments to the Minnesota State Fire <br/>
<a id="pl.177.11"></a><var>177.11</var>Department Association and to the state Volunteer Firefighters' Benefit Association in <br/>
<a id="pl.177.12"></a><var>177.12</var>order to entitle its firefighters to membership in and the benefits of these state associations;<br/>
<a id="pl.177.13"></a><var>177.13</var>(2) payment of the cost of purchasing and maintaining needed equipment for the <br/>
<a id="pl.177.14"></a><var>177.14</var>fire department; and<br/>
<a id="pl.177.15"></a><var>177.15</var>(3) payment of the cost for of construction, acquisition, repair and, or maintenance <br/>
<a id="pl.177.16"></a><var>177.16</var>of buildings or other premises to house the equipment of the fire department.<br/>
<a id="pl.177.17"></a><var>177.17</var>(b) A qualified municipality which is entitled to receive fire state aid, which has no <br/>
<a id="pl.177.18"></a><var>177.18</var>volunteer firefighters' relief association directly associated with its fire department and <br/>
<a id="pl.177.19"></a><var>177.19</var>which has full-time firefighters with retirement coverage by the public employees police <br/>
<a id="pl.177.20"></a><var>177.20</var>and fire retirement plan may disburse the fire state aid as provided in paragraph (a), for the <br/>
<a id="pl.177.21"></a><var>177.21</var>payment of the employer contribution requirement with respect to firefighters covered by <br/>
<a id="pl.177.22"></a><var>177.22</var>the public employees police and fire retirement plan under section 353.65, subdivision 3, <br/>
<a id="pl.177.23"></a><var>177.23</var>or for a combination of the two types of disbursements.<br/>
<a id="pl.177.24"></a><var>177.24</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2009.<br/>
<br/>
<a id="bill.10.46.0"></a><a id="pl.177.25"></a><var>177.25</var>    Sec. 46. Minnesota Statutes 2008, section 424A.10, subdivision 1, is amended to read:<br/>
<a id="pl.177.26"></a><var>177.26</var>    Subdivision 1. <b> Definitions.</b> For purposes of this section: <br/>
<a id="pl.177.27"></a><var>177.27</var>    (1) "qualified recipient" means an individual who receives a lump-sum distribution <br/>
<a id="pl.177.28"></a><var>177.28</var>of pension or retirement benefits from a volunteer firefighters' relief association for service <br/>
<a id="pl.177.29"></a><var>177.29</var>that the individual has performed as a volunteer firefighter;<br/>
<a id="pl.177.30"></a><var>177.30</var>    (2) "survivor of a deceased active or deferred volunteer firefighter" means the legally <br/>
<a id="pl.177.31"></a><var>177.31</var>married surviving spouse of a deceased active or deferred volunteer firefighter under <br/>
<a id="pl.177.32"></a><var>177.32</var>section 424A.001, subdivision 6, or, if none, the surviving minor child or minor children <br/>
<a id="pl.177.33"></a><var>177.33</var>of a deceased active or deferred volunteer firefighter; <br/>
<a id="pl.178.1"></a><var>178.1</var>    (3) "active volunteer firefighter" means a person who regularly renders fire <br/>
<a id="pl.178.2"></a><var>178.2</var>suppression service for a municipal fire department or an independent nonprofit firefighting <br/>
<a id="pl.178.3"></a><var>178.3</var>corporation, who has met the statutory and other requirements for relief association <br/>
<a id="pl.178.4"></a><var>178.4</var>membership, and who has been is deemed by the relief association under law and its <br/>
<a id="pl.178.5"></a><var>178.5</var>bylaws to be a fully qualified member of the relief association for at least one month; and<br/>
<a id="pl.178.6"></a><var>178.6</var>    (4) "deferred volunteer firefighter" means a former active volunteer firefighter who <br/>
<a id="pl.178.7"></a><var>178.7</var>terminated active firefighting service, has sufficient service credit from the applicable relief <br/>
<a id="pl.178.8"></a><var>178.8</var>association to be entitled to a service pension under the bylaws of the relief association, <br/>
<a id="pl.178.9"></a><var>178.9</var>but has not applied for or has not received the service pension.<br/>
<a id="pl.178.10"></a><var>178.10</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2009.<br/>
<br/>
<a id="bill.10.47.0"></a><a id="pl.178.11"></a><var>178.11</var>    Sec. 47. Minnesota Statutes 2008, section 424A.10, subdivision 2, is amended to read:<br/>
<a id="pl.178.12"></a><var>178.12</var>    Subd. 2. <b>Payment of supplemental benefit.</b> (a) Upon the payment by a volunteer <br/>
<a id="pl.178.13"></a><var>178.13</var>firefighters' relief association of a lump-sum distribution to a qualified recipient, the <br/>
<a id="pl.178.14"></a><var>178.14</var>association must pay a supplemental benefit to the qualified recipient. Notwithstanding <br/>
<a id="pl.178.15"></a><var>178.15</var>any law to the contrary, the relief association must pay the supplemental benefit out of <br/>
<a id="pl.178.16"></a><var>178.16</var>its special fund. The amount of This benefit equals is an amount equal to ten percent of <br/>
<a id="pl.178.17"></a><var>178.17</var>the regular lump-sum distribution that is paid on the basis of the recipient's service as <br/>
<a id="pl.178.18"></a><var>178.18</var>a volunteer firefighter. In no case may the amount of the supplemental benefit exceed <br/>
<a id="pl.178.19"></a><var>178.19</var>$1,000. A supplemental benefit under this paragraph may not be paid to a survivor of a <br/>
<a id="pl.178.20"></a><var>178.20</var>deceased active or deferred volunteer firefighter in that capacity.<br/>
<a id="pl.178.21"></a><var>178.21</var>    (b) Upon the payment by a relief association of a lump-sum survivor benefit or <br/>
<a id="pl.178.22"></a><var>178.22</var>funeral benefit to a survivor of a deceased active volunteer firefighter or of a deceased <br/>
<a id="pl.178.23"></a><var>178.23</var>deferred volunteer firefighter, the association may pay a supplemental survivor benefit <br/>
<a id="pl.178.24"></a><var>178.24</var>to the survivor of the deceased active or deferred volunteer firefighter from the special <br/>
<a id="pl.178.25"></a><var>178.25</var>fund of the relief association if its articles of incorporation or bylaws so provide. The <br/>
<a id="pl.178.26"></a><var>178.26</var>amount of the supplemental survivor benefit is 20 percent of the survivor benefit or funeral <br/>
<a id="pl.178.27"></a><var>178.27</var>benefit, but not to exceed $2,000.<br/>
<a id="pl.178.28"></a><var>178.28</var>    (c) An individual may receive a supplemental benefit under paragraph (a) or under <br/>
<a id="pl.178.29"></a><var>178.29</var>paragraph (b), but not under both paragraphs with respect to one lump-sum volunteer <br/>
<a id="pl.178.30"></a><var>178.30</var>firefighter benefit.<br/>
<a id="pl.178.31"></a><var>178.31</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2009.<br/>
<br/>
<a id="bill.10.48.0"></a><a id="pl.178.32"></a><var>178.32</var>    Sec. 48. Minnesota Statutes 2008, section 424A.10, subdivision 3, is amended to read:<br/>
<a id="pl.179.1"></a><var>179.1</var>    Subd. 3.  <b>State reimbursement.</b> (a) Each year, to be eligible for state reimbursement <br/>
<a id="pl.179.2"></a><var>179.2</var>of the amount of supplemental benefits paid under subdivision 2 during the preceding <br/>
<a id="pl.179.3"></a><var>179.3</var>calendar year, the volunteer firefighters' relief association must shall apply to the <br/>
<a id="pl.179.4"></a><var>179.4</var>commissioner of revenue by February 15. By March 15, the commissioner shall <br/>
<a id="pl.179.5"></a><var>179.5</var>reimburse the relief association for the amount of the supplemental benefits paid by the <br/>
<a id="pl.179.6"></a><var>179.6</var>relief association to qualified recipients and to survivors of deceased active or deferred <br/>
<a id="pl.179.7"></a><var>179.7</var>volunteer firefighters. <br/>
<a id="pl.179.8"></a><var>179.8</var>    (b) The commissioner of revenue shall prescribe the form of and supporting <br/>
<a id="pl.179.9"></a><var>179.9</var>information that must be supplied as part of the application for state reimbursement. <br/>
<a id="pl.179.10"></a><var>179.10</var>The commissioner of revenue shall reimburse the relief association by paying the <br/>
<a id="pl.179.11"></a><var>179.11</var>reimbursement amount to the treasurer of the municipality where the association is located. <br/>
<a id="pl.179.12"></a><var>179.12</var>Within 30 days after receipt, the municipal treasurer shall transmit the state reimbursement <br/>
<a id="pl.179.13"></a><var>179.13</var>to the treasurer of the association if the association has filed a financial report with the <br/>
<a id="pl.179.14"></a><var>179.14</var>municipality. If the relief association has not filed a financial report with the municipality, <br/>
<a id="pl.179.15"></a><var>179.15</var>the municipal treasurer shall delay transmission of the reimbursement payment to the <br/>
<a id="pl.179.16"></a><var>179.16</var>association until the complete financial report is filed. If the association has dissolved or <br/>
<a id="pl.179.17"></a><var>179.17</var>has been removed as a trustee of state aid, the treasurer shall deposit the money in a <br/>
<a id="pl.179.18"></a><var>179.18</var>special account in the municipal treasury, and the money may be disbursed only for the <br/>
<a id="pl.179.19"></a><var>179.19</var>purposes and in the manner provided in section 
         <statute_ref>424A.08</statute_ref>. When paid to the association, <br/>
<a id="pl.179.20"></a><var>179.20</var>the reimbursement payment must be deposited in the special fund of the relief association. <br/>
<a id="pl.179.21"></a><var>179.21</var>    (c) A sum sufficient to make the payments is appropriated from the general fund <br/>
<a id="pl.179.22"></a><var>179.22</var>to the commissioner of revenue. <br/>
<a id="pl.179.23"></a><var>179.23</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2009.<br/>
<br/>
<a id="bill.10.49.0"></a><a id="pl.179.24"></a><var>179.24</var>    Sec. 49. Minnesota Statutes 2008, section 424A.10, subdivision 4, is amended to read:<br/>
<a id="pl.179.25"></a><var>179.25</var>    Subd. 4. <b>In lieu of income tax exclusion.</b> (a) The supplemental benefit provided <br/>
<a id="pl.179.26"></a><var>179.26</var>by this section is in lieu of the state income tax exclusion for lump-sum distributions of <br/>
<a id="pl.179.27"></a><var>179.27</var>retirement benefits paid to volunteer firefighters. <br/>
<a id="pl.179.28"></a><var>179.28</var>(b) If the law is modified to exclude or exempt volunteer firefighters' lump-sum <br/>
<a id="pl.179.29"></a><var>179.29</var>distributions from state income taxation, the supplemental benefits under this section <br/>
<a id="pl.179.30"></a><var>179.30</var>may are no longer be paid payable, beginning with the first calendar year in which the <br/>
<a id="pl.179.31"></a><var>179.31</var>exclusion or exemption is effective. This subdivision does not apply to exemption of all or <br/>
<a id="pl.179.32"></a><var>179.32</var>part of a lump-sum distribution under section 
         <statute_ref>290.032</statute_ref> or 
         <statute_ref>290.0802</statute_ref>. <br/>
<a id="pl.179.33"></a><var>179.33</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2009.<br/>
<br/>
<a id="bill.10.50.0"></a><a id="pl.180.1"></a><var>180.1</var>    Sec. 50. Minnesota Statutes 2008, section 424A.10, subdivision 5, is amended to read:<br/>
<a id="pl.180.2"></a><var>180.2</var>    Subd. 5. <b>Retroactive reimbursement in certain instances. </b> A supplemental <br/>
<a id="pl.180.3"></a><var>180.3</var>survivor or funeral benefit may be paid by a relief association for the death of an active <br/>
<a id="pl.180.4"></a><var>180.4</var>volunteer firefighter or of a deferred volunteer firefighter that occurred on or after August <br/>
<a id="pl.180.5"></a><var>180.5</var>1, 2005, if the relief association articles of incorporation or bylaws so provide for a <br/>
<a id="pl.180.6"></a><var>180.6</var>supplemental survivor benefit and provide for retroactivity.<br/>
<a id="pl.180.7"></a><var>180.7</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2009.<br/>
<br/>
<a id="bill.10.51.0"></a><a id="pl.180.8"></a><var>180.8</var>    Sec. 51. Minnesota Statutes 2008, section 424B.10, is amended by adding a <br/>
<a id="pl.180.9"></a><var>180.9</var>subdivision to read:<br/>
<a id="pl.180.10"></a><var>180.10</var>    Subd. 1a. <b>Applicability.</b> This section applies when all of the volunteer firefighters' <br/>
<a id="pl.180.11"></a><var>180.11</var>relief associations involved in the consolidation are defined benefit relief associations as <br/>
<a id="pl.180.12"></a><var>180.12</var>defined in section 424A.001, subdivision 1b.<br/>
<a id="pl.180.13"></a><var>180.13</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2009.<br/>
<br/>
<a id="bill.10.52.0"></a><a id="pl.180.14"></a><var>180.14</var>    Sec. 52. Minnesota Statutes 2008, section 424B.10, is amended by adding a <br/>
<a id="pl.180.15"></a><var>180.15</var>subdivision to read:<br/>
<a id="pl.180.16"></a><var>180.16</var>    Subd. 1b. <b>Benefits.</b> (a) The successor relief association following the consolidation <br/>
<a id="pl.180.17"></a><var>180.17</var>of two or more defined benefit relief associations must be a defined benefit relief <br/>
<a id="pl.180.18"></a><var>180.18</var>association.<br/>
<a id="pl.180.19"></a><var>180.19</var>(b) Notwithstanding any provision of section 424A.02, subdivision 3, to the contrary, <br/>
<a id="pl.180.20"></a><var>180.20</var>the initial service pension amount of the subsequent defined benefit relief association as <br/>
<a id="pl.180.21"></a><var>180.21</var>of the effective date of consolidation is either the service pension amount specified in <br/>
<a id="pl.180.22"></a><var>180.22</var>clause (1) or the service pension amounts specified in clause (2), as provided for in the <br/>
<a id="pl.180.23"></a><var>180.23</var>consolidated relief association's articles of incorporation or bylaws:<br/>
<a id="pl.180.24"></a><var>180.24</var>(1) the highest dollar amount service pension amount of any prior volunteer <br/>
<a id="pl.180.25"></a><var>180.25</var>firefighters relief association in effect immediately before the consolidation initiation if the <br/>
<a id="pl.180.26"></a><var>180.26</var>pension amount was implemented consistent with section 
<statute_ref>424A.02</statute_ref>; or<br/>
<a id="pl.180.27"></a><var>180.27</var>(2) for service rendered by each individual volunteer firefighter before consolidation, <br/>
<a id="pl.180.28"></a><var>180.28</var>the service pension amount under the consolidating volunteer firefighters relief association <br/>
<a id="pl.180.29"></a><var>180.29</var>that the firefighter belonged to immediately before the consolidation if the pension amount <br/>
<a id="pl.180.30"></a><var>180.30</var>was implemented consistent with section 
<statute_ref>424A.02</statute_ref> and for service rendered after the <br/>
<a id="pl.180.31"></a><var>180.31</var>effective date of the consolidation, the highest dollar amount service pension of any of the <br/>
<a id="pl.180.32"></a><var>180.32</var>consolidating volunteer firefighters relief associations in effect immediately before the <br/>
<a id="pl.180.33"></a><var>180.33</var>consolidation if the pension amount was implemented consistent with section 
<statute_ref>424A.02</statute_ref>.<br/>
<a id="pl.181.1"></a><var>181.1</var>(c) Any increase in the service pension amount beyond the amount implemented <br/>
<a id="pl.181.2"></a><var>181.2</var>under paragraph (a) must conform with the requirements and limitations of sections <br/>
<a id="pl.181.3"></a><var>181.3</var><statute_ref>69.771</statute_ref> to 
<statute_ref>69.775</statute_ref> and section 
<statute_ref>424A.02</statute_ref>.<br/>
<a id="pl.181.4"></a><var>181.4</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2009.<br/>
<br/>
<a id="bill.10.53.0"></a><a id="pl.181.5"></a><var>181.5</var>    Sec. 53. Minnesota Statutes 2008, section 424B.10, subdivision 2, is amended to read:<br/>
<a id="pl.181.6"></a><var>181.6</var>    Subd. 2. <b>Funding.</b> (a) Unless the applicable municipalities agree in writing to <br/>
<a id="pl.181.7"></a><var>181.7</var>allocate the minimum municipal obligation in a different manner, the minimum municipal <br/>
<a id="pl.181.8"></a><var>181.8</var>obligation under section 
         <statute_ref>69.772</statute_ref> or 
         <statute_ref>69.773</statute_ref>, whichever applies, must be allocated between <br/>
<a id="pl.181.9"></a><var>181.9</var>the applicable municipalities in proportion to their fire state aid.<br/>
<a id="pl.181.10"></a><var>181.10</var>(b) If any applicable municipality fails to meet its portion of the minimum municipal <br/>
<a id="pl.181.11"></a><var>181.11</var>obligation to the subsequent relief association, all other applicable municipalities are <br/>
<a id="pl.181.12"></a><var>181.12</var>jointly obligated to provide the required funding upon certification by the relief association <br/>
<a id="pl.181.13"></a><var>181.13</var>secretary. An applicable municipality that pays the minimum municipal obligation <br/>
<a id="pl.181.14"></a><var>181.14</var>amount for another applicable municipality, the municipality may collect the that payment <br/>
<a id="pl.181.15"></a><var>181.15</var>amount, plus a 25 percent surcharge, from the responsible applicable municipality by any <br/>
<a id="pl.181.16"></a><var>181.16</var>available means, including a deduction from any state aid or payment amount payable <br/>
<a id="pl.181.17"></a><var>181.17</var>to the responsible municipality upon certification of the necessary information to the <br/>
<a id="pl.181.18"></a><var>181.18</var>commissioner of finance.<br/>
<a id="pl.181.19"></a><var>181.19</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2009.<br/>
<br/>
<a id="bill.10.54.0"></a><a id="pl.181.20"></a><var>181.20</var>    Sec. 54. <b>[424B.11] CONSOLIDATING DEFINED CONTRIBUTION RELIEF </b><br/>
<a id="pl.181.21"></a><var>181.21</var><b>ASSOCIATIONS; INDIVIDUAL ACCOUNTS; FUNDING.</b><br/>
<a id="pl.181.22"></a><var>181.22</var>    Subdivision 1. <b>Applicability.</b> This section applies when all of the volunteer <br/>
<a id="pl.181.23"></a><var>181.23</var>firefighters' relief associations involved in the consolidation are defined contribution relief <br/>
<a id="pl.181.24"></a><var>181.24</var>associations as defined in section 424A.001, subdivision 1c.<br/>
<a id="pl.181.25"></a><var>181.25</var>    Subd. 2. <b>Individual accounts.</b> The successor relief association following the <br/>
<a id="pl.181.26"></a><var>181.26</var>consolidation of two or more defined contribution relief associations must be a defined <br/>
<a id="pl.181.27"></a><var>181.27</var>contribution relief association and the successor relief association board shall establish <br/>
<a id="pl.181.28"></a><var>181.28</var>individual accounts for every active member, inactive member, deferred member, or <br/>
<a id="pl.181.29"></a><var>181.29</var>retired member receiving installment payments with that status as of the consolidation <br/>
<a id="pl.181.30"></a><var>181.30</var>date. To each individual account the successor relief association must credit the amount to <br/>
<a id="pl.181.31"></a><var>181.31</var>the credit of each person by a predecessor relief association as of the date of consolidation <br/>
<a id="pl.181.32"></a><var>181.32</var>plus a proportional share, based on account value, of any subsequent net revenue during <br/>
<a id="pl.181.33"></a><var>181.33</var>the consolidation process.<br/>
<a id="pl.182.1"></a><var>182.1</var>    Subd. 3. <b>Funding.</b> Unless the articles of incorporation or bylaws of the successor <br/>
<a id="pl.182.2"></a><var>182.2</var>relief association specify that municipal contributions are wholly voluntary or unless the <br/>
<a id="pl.182.3"></a><var>182.3</var>municipalities associated with the consolidating defined contribution relief associations <br/>
<a id="pl.182.4"></a><var>182.4</var>agree in writing to a different municipal support arrangement, each municipality must <br/>
<a id="pl.182.5"></a><var>182.5</var>continue to provide the same amount of municipal support to the successor relief <br/>
<a id="pl.182.6"></a><var>182.6</var>association as the municipality provided to the applicable predecessor relief association in <br/>
<a id="pl.182.7"></a><var>182.7</var>the calendar year immediately prior to the calendar year in which the consolidation occurs.<br/>
<a id="pl.182.8"></a><var>182.8</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2009.<br/>
<br/>
<a id="bill.10.55.0"></a><a id="pl.182.9"></a><var>182.9</var>    Sec. 55. <b>[424B.12] MIXED CONSOLIDATING RELIEF ASSOCIATIONS; </b><br/>
<a id="pl.182.10"></a><var>182.10</var><b>BENEFIT PLAN; FUNDING.</b><br/>
<a id="pl.182.11"></a><var>182.11</var>    Subdivision 1. <b>Applicability.</b> This section applies where one or more of the <br/>
<a id="pl.182.12"></a><var>182.12</var>volunteer firefighters' relief associations involved in the consolidation are defined benefit <br/>
<a id="pl.182.13"></a><var>182.13</var>relief associations as defined in section 424A.001, subdivision 1b, and one or more of <br/>
<a id="pl.182.14"></a><var>182.14</var>the volunteer firefighters' relief associations involved in the consolidation are defined <br/>
<a id="pl.182.15"></a><var>182.15</var>contribution relief associations as defined in section 424A.001, subdivision 1c.<br/>
<a id="pl.182.16"></a><var>182.16</var>    Subd. 2. <b>Benefit plan.</b> The articles of incorporation or bylaws of the successor <br/>
<a id="pl.182.17"></a><var>182.17</var>relief association must specify whether the relief association is a defined benefit relief <br/>
<a id="pl.182.18"></a><var>182.18</var>association or whether the relief association is a defined contribution relief association. If <br/>
<a id="pl.182.19"></a><var>182.19</var>the successor relief association is a defined benefit relief association, the relief association <br/>
<a id="pl.182.20"></a><var>182.20</var>benefits must comply with sections 424A.02 and 424B.11, subdivision 1a. If the successor <br/>
<a id="pl.182.21"></a><var>182.21</var>relief association is a defined contribution relief association, the relief association must <br/>
<a id="pl.182.22"></a><var>182.22</var>comply with sections 424A.016 and 424B.12, subdivision 2.<br/>
<a id="pl.182.23"></a><var>182.23</var>    Subd. 3. <b>Funding.</b> If the successor relief association is a defined benefit relief <br/>
<a id="pl.182.24"></a><var>182.24</var>association, the relief association funding is governed by section 424B.11, subdivision 2. <br/>
<a id="pl.182.25"></a><var>182.25</var>If the successor relief association is a defined contribution relief association, the relief <br/>
<a id="pl.182.26"></a><var>182.26</var>association funding is governed by section 424B.12, subdivision 3.<br/>
<a id="pl.182.27"></a><var>182.27</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2009.<br/>
<br/>
<a id="bill.10.56.0"></a><a id="pl.182.28"></a><var>182.28</var>    Sec. 56. Minnesota Statutes 2008, section 424B.21, is amended to read:<br/>
<a id="pl.182.29"></a><var>182.29</var><b>424B.21 ANNUITY PURCHASES UPON DISSOLUTION.</b><br/>
<a id="pl.182.30"></a><var>182.30</var>The board of trustees of a volunteer firefighters relief association that is scheduled <br/>
<a id="pl.182.31"></a><var>182.31</var>for dissolution may purchase annuity contracts under section 
         <statute_ref>424A.02 424A.015, <br/>
<a id="pl.182.32"></a><var>182.32</var>subdivision 8a 3
</statute_ref>, instead of transferring special fund assets to a municipal trust fund <br/>
<a id="pl.182.33"></a><var>182.33</var>under section 
         <statute_ref>424B.20, subdivision 4</statute_ref>. Payment of an annuity for which a contract is <br/>
<a id="pl.183.1"></a><var>183.1</var>purchased may not commence before the retirement age specified in the relief association <br/>
<a id="pl.183.2"></a><var>183.2</var>bylaws and in compliance with section 
         <statute_ref>424A.016, subdivision 2, or 424A.02, subdivision <br/>
<a id="pl.183.3"></a><var>183.3</var>1
         </statute_ref>. Legal title to the annuity contract transfers to the municipal trust fund under section <br/>
<statute_ref><a id="pl.183.4"></a><var>183.4</var>424B.20, subdivision 4
         </statute_ref>.<br/>
<a id="pl.183.5"></a><var>183.5</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2009, if article 1 is also <br/>
<a id="pl.183.6"></a><var>183.6</var>enacted.<br/>
<br/>
<a id="bill.10.57.0"></a><a id="pl.183.7"></a><var>183.7</var>    Sec. 57. <b>BRIMSON FIREFIGHTERS RELIEF ASSOCIATION; BOARD OF </b><br/>
<a id="pl.183.8"></a><var>183.8</var><b>TRUSTEES MEMBERSHIP.</b><br/>
<a id="pl.183.9"></a><var>183.9</var>Notwithstanding any provisions of Minnesota Statutes, section 424A.04, or other <br/>
<a id="pl.183.10"></a><var>183.10</var>law to the contrary, the Brimson Firefighters Relief Association must be managed by a <br/>
<a id="pl.183.11"></a><var>183.11</var>board of trustees consisting of ten members, with six trustees elected from the membership <br/>
<a id="pl.183.12"></a><var>183.12</var>of the relief association, one trustee drawn from the officials of each municipality served <br/>
<a id="pl.183.13"></a><var>183.13</var>by the fire department to which the relief association is directly associated, and one trustee <br/>
<a id="pl.183.14"></a><var>183.14</var>who is the fire chief serving with the independent nonprofit firefighting corporation.<br/>
<a id="pl.183.15"></a><var>183.15</var><b>EFFECTIVE DATE.</b>This section is effective the day after the governing body <br/>
<a id="pl.183.16"></a><var>183.16</var>of the Fairbanks Township and its chief clerical officer timely comply with Minnesota <br/>
<a id="pl.183.17"></a><var>183.17</var>Statutes, section 645.021, subdivisions 2 and 3.<br/>
<br/>
<a id="bill.10.58.0"></a><a id="pl.183.18"></a><var>183.18</var>    Sec. 58. <b> REPEALER.</b><br/>
<a id="pl.183.19"></a><var>183.19</var>    Subdivision 1. <b>Repealed for recodification.</b> Minnesota Statutes 2008, sections <br/>
<a id="pl.183.20"></a><var>183.20</var>424A.001, subdivision 7; 424A.02, subdivisions 4, 6, 8a, and 8b; and 424B.10, subdivision <br/>
<a id="pl.183.21"></a><var>183.21</var>1, are repealed.<br/>
<a id="pl.183.22"></a><var>183.22</var>    Subd. 2. <b>Repealed as obsolete.</b> Minnesota Statutes 2008, section 424A.09, is <br/>
<a id="pl.183.23"></a><var>183.23</var>repealed.<br/>
<a id="pl.183.24"></a><var>183.24</var>    Subd. 3. <b>Substantive repeal.</b>  Minnesota Statutes 2008, section 424A.02, <br/>
<a id="pl.183.25"></a><var>183.25</var>subdivision 9b, is repealed.<br/>
<br/>
<a id="bill.11.0.0"></a>

<a id="bill.11.1.0"></a><a id="pl.183.28"></a><var>183.28</var>    Section 1. Minnesota Statutes 2008, section 354.66, subdivision 6, is amended to read:<br/>
<a id="pl.183.29"></a><var>183.29</var>    Subd. 6. <b>Insurance.</b> A board of an employing district entering into an agreement <br/>
<a id="pl.183.30"></a><var>183.30</var>authorized by this section shall take all steps necessary to assure continuance of any <br/>
<a id="pl.183.31"></a><var>183.31</var>insurance programs furnished or authorized a full-time teacher on an identical basis and <br/>
<a id="pl.183.32"></a><var>183.32</var>with identical sharing of costs for a part-time teacher pursuant to this section, provided, <br/>
<a id="pl.184.1"></a><var>184.1</var>however, that the requirements of this sentence may be modified by a collective bargaining <br/>
<a id="pl.184.2"></a><var>184.2</var>agreement between a board and an exclusive representative pursuant to chapter 179 179A. <br/>
<a id="pl.184.3"></a><var>184.3</var>Teachers as defined in section 
         <statute_ref>136F.43</statute_ref> employed on a less than 75 percent time basis <br/>
<a id="pl.184.4"></a><var>184.4</var>pursuant to this section shall be eligible for state paid insurance benefits as if the teachers <br/>
<a id="pl.184.5"></a><var>184.5</var>were employed full time.  <br/>
<a id="pl.184.6"></a><var>184.6</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.11.2.0"></a><a id="pl.184.7"></a><var>184.7</var>    Sec. 2. Minnesota Statutes 2008, section 356.32, subdivision 2, is amended to read:<br/>
<a id="pl.184.8"></a><var>184.8</var>    Subd. 2. <b>Covered retirement plans.</b> The provisions of this section apply to the <br/>
<a id="pl.184.9"></a><var>184.9</var>following retirement plans:<br/>
<a id="pl.184.10"></a><var>184.10</var>(1) the general state employees retirement plan of the Minnesota State Retirement <br/>
<a id="pl.184.11"></a><var>184.11</var>System, established under chapter 352;<br/>
<a id="pl.184.12"></a><var>184.12</var>(2) the correctional state employees retirement plan of the Minnesota State <br/>
<a id="pl.184.13"></a><var>184.13</var>Retirement System, established under chapter 352;<br/>
<a id="pl.184.14"></a><var>184.14</var>(3) the State Patrol retirement plan, established under chapter 352B;<br/>
<a id="pl.184.15"></a><var>184.15</var>(4) the general employees retirement plan of the Public Employees Retirement <br/>
<a id="pl.184.16"></a><var>184.16</var>Association, established under chapter 353;<br/>
<a id="pl.184.17"></a><var>184.17</var>(5) the public employees police and fire plan of the Public Employees Retirement <br/>
<a id="pl.184.18"></a><var>184.18</var>Association, established under chapter 353;<br/>
<a id="pl.184.19"></a><var>184.19</var>(6) the Teachers Retirement Association, established under chapter 354;<br/>
<a id="pl.184.20"></a><var>184.20</var>(7) the Minneapolis Employees Retirement Fund, established under chapter 422A;<br/>
<a id="pl.184.21"></a><var>184.21</var>(8) the Duluth Teachers Retirement Fund Association, established under chapter <br/>
<a id="pl.184.22"></a><var>184.22</var>354A; and<br/>
<a id="pl.184.23"></a><var>184.23</var>(9) the Minneapolis Teachers Retirement Fund Association, established under <br/>
<a id="pl.184.24"></a><var>184.24</var>chapter 354A; and<br/>
<a id="pl.184.25"></a><var>184.25</var>(10) (9) the St. Paul Teachers Retirement Fund Association, established under <br/>
<a id="pl.184.26"></a><var>184.26</var>chapter 354A.<br/>
<a id="pl.184.27"></a><var>184.27</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.11.3.0"></a><a id="pl.184.28"></a><var>184.28</var>    Sec. 3. Minnesota Statutes 2008, section 422A.06, subdivision 8, is amended to read:<br/>
<a id="pl.184.29"></a><var>184.29</var>    Subd. 8. <b>Retirement benefit fund.</b> (a) The retirement benefit fund consists of <br/>
<a id="pl.184.30"></a><var>184.30</var>amounts held for payment of retirement allowances for members retired under this chapter, <br/>
<a id="pl.184.31"></a><var>184.31</var>including any transfer amount payable under subdivision 3, paragraph (c).<br/>
<a id="pl.184.32"></a><var>184.32</var>    (b) Unless subdivision 3, paragraph (c), applies, assets equal to the required <br/>
<a id="pl.184.33"></a><var>184.33</var>reserves for retirement allowances under this chapter determined in accordance with the <br/>
<a id="pl.185.1"></a><var>185.1</var>appropriate mortality table adopted by the board of trustees based on the experience of the <br/>
<a id="pl.185.2"></a><var>185.2</var>fund as recommended by the actuary retained under section 
         <statute_ref>356.214</statute_ref> must be transferred <br/>
<a id="pl.185.3"></a><var>185.3</var>from the deposit accumulation fund to the retirement benefit fund as of the last business <br/>
<a id="pl.185.4"></a><var>185.4</var>day of the month in which the retirement allowance begins. The income from investments <br/>
<a id="pl.185.5"></a><var>185.5</var>of these assets must be allocated to this fund and any interest charge under subdivision <br/>
<a id="pl.185.6"></a><var>185.6</var>3, paragraph (c), must be credited to the fund. There must be paid from this fund the <br/>
<a id="pl.185.7"></a><var>185.7</var>retirement annuities authorized by law. A required reserve calculation for the retirement <br/>
<a id="pl.185.8"></a><var>185.8</var>benefit fund must be made by the actuary retained under section 
         <statute_ref>356.214</statute_ref> and must be <br/>
<a id="pl.185.9"></a><var>185.9</var>certified to the retirement board by the actuary retained under section 
         <statute_ref>356.214</statute_ref>.<br/>
<a id="pl.185.10"></a><var>185.10</var>    (c) There is established a deferred yield adjustment account which must be increased <br/>
<a id="pl.185.11"></a><var>185.11</var>by the sale or disposition of any debt securities at less than book value and must be <br/>
<a id="pl.185.12"></a><var>185.12</var>decreased by the sale or disposition of debt securities at more than book value. At the <br/>
<a id="pl.185.13"></a><var>185.13</var>end of each fiscal year, a portion of the balance of this account must be offset against the <br/>
<a id="pl.185.14"></a><var>185.14</var>investment income for that year. The annual portion of the balance to be offset must be <br/>
<a id="pl.185.15"></a><var>185.15</var>proportional to the reciprocal of the average remaining life of the bonds sold, unless the <br/>
<a id="pl.185.16"></a><var>185.16</var>amounts are offset by gains on the future sales of these securities. The amount of this <br/>
<a id="pl.185.17"></a><var>185.17</var>account must be included in the recognized value of assets other than corporate stocks <br/>
<a id="pl.185.18"></a><var>185.18</var>and all other equity investments. In any fiscal year in which the gains on the sales of debt <br/>
<a id="pl.185.19"></a><var>185.19</var>securities exceed the discounts realized on the sales of such securities, the excess must <br/>
<a id="pl.185.20"></a><var>185.20</var>be used to reduce the balance of the account. If the realized capital gains are sufficient <br/>
<a id="pl.185.21"></a><var>185.21</var>to reduce the balance of the account to zero, any excess gains must be available for the <br/>
<a id="pl.185.22"></a><var>185.22</var>calculation of postretirement adjustments.<br/>
<a id="pl.185.23"></a><var>185.23</var>    (d)(1) Annually, following June 30, the board shall use the procedures in clauses (2), <br/>
<a id="pl.185.24"></a><var>185.24</var>(3), and (4), to determine whether a postretirement adjustment is payable and to determine <br/>
<a id="pl.185.25"></a><var>185.25</var>the amount of any postretirement adjustment.<br/>
<a id="pl.185.26"></a><var>185.26</var>    (2) If the Consumer Price Index for urban wage earners and clerical workers all <br/>
<a id="pl.185.27"></a><var>185.27</var>items index published by the Bureau of Labor Statistics of the United States Department <br/>
<a id="pl.185.28"></a><var>185.28</var>of Labor increases from June 30 of the preceding year to June 30 of the current year, the <br/>
<a id="pl.185.29"></a><var>185.29</var>board shall certify the percentage increase. The amount certified must not exceed the <br/>
<a id="pl.185.30"></a><var>185.30</var>lesser of the difference between the preretirement interest assumption and postretirement <br/>
<a id="pl.185.31"></a><var>185.31</var>interest assumption in section 
<statute_ref>356.215, subdivision 8, paragraph (a)</statute_ref>, or 3.5 percent.<br/>
<a id="pl.185.32"></a><var>185.32</var>    (3) In addition to any percentage increase certified under paragraph (b), the board <br/>
<a id="pl.185.33"></a><var>185.33</var>shall use the following procedures to determine if a postretirement adjustment is payable <br/>
<a id="pl.185.34"></a><var>185.34</var>under this paragraph:<br/>
<a id="pl.185.35"></a><var>185.35</var>    (i) the board shall determine the market value of the fund on June 30 of that year;<br/>
<a id="pl.186.1"></a><var>186.1</var>    (ii) the amount of reserves required as of the current June 30 for the annuity or <br/>
<a id="pl.186.2"></a><var>186.2</var>benefit payable to an annuitant and benefit recipient must be determined by the actuary <br/>
<a id="pl.186.3"></a><var>186.3</var>retained under section 
         <statute_ref>356.214</statute_ref>. An annuitant or benefit recipient who has been receiving <br/>
<a id="pl.186.4"></a><var>186.4</var>an annuity or benefit for at least 12 full months as of the current June 30 is eligible to <br/>
<a id="pl.186.5"></a><var>186.5</var>receive a full postretirement adjustment. An annuitant or benefit recipient who has been <br/>
<a id="pl.186.6"></a><var>186.6</var>receiving an annuity or benefit for at least one full month, but less than 12 full months as of <br/>
<a id="pl.186.7"></a><var>186.7</var>the current June 30, is eligible to receive a partial postretirement adjustment. The amount <br/>
<a id="pl.186.8"></a><var>186.8</var>of the reserves for those annuitants and benefit recipients who are eligible to receive a <br/>
<a id="pl.186.9"></a><var>186.9</var>full postretirement benefit adjustment is known as "eligible reserves." The amount of <br/>
<a id="pl.186.10"></a><var>186.10</var>the reserves for those annuitants and benefit recipients who are not eligible to receive a <br/>
<a id="pl.186.11"></a><var>186.11</var>postretirement adjustment is known as "noneligible reserves." For an annuitant or benefit <br/>
<a id="pl.186.12"></a><var>186.12</var>recipient who is eligible to receive a partial postretirement adjustment, additional "eligible <br/>
<a id="pl.186.13"></a><var>186.13</var>reserves" is an amount that bears the same ratio to the total reserves required for the <br/>
<a id="pl.186.14"></a><var>186.14</var>annuitant or benefit recipient as the number of full months of annuity or benefit receipt as <br/>
<a id="pl.186.15"></a><var>186.15</var>of the current June 30 bears to 12 full months. The remainder of the annuitant's or benefit <br/>
<a id="pl.186.16"></a><var>186.16</var>recipient's reserves are "noneligible reserves";<br/>
<a id="pl.186.17"></a><var>186.17</var>    (iii) the board shall determine the percentage increase certified under clause (2) <br/>
<a id="pl.186.18"></a><var>186.18</var>multiplied by the eligible required reserves, as adjusted for mortality gains and losses, <br/>
<a id="pl.186.19"></a><var>186.19</var>determined under item (ii);<br/>
<a id="pl.186.20"></a><var>186.20</var>    (iv) the board shall add the amount of reserves required for the annuities or benefits <br/>
<a id="pl.186.21"></a><var>186.21</var>payable to annuitants and benefit recipients of the participating public pension plans or <br/>
<a id="pl.186.22"></a><var>186.22</var>funds as of the current June 30 to the amount determined under item (iii);<br/>
<a id="pl.186.23"></a><var>186.23</var>    (v) the board shall subtract the amount determined under item (iv) from the market <br/>
<a id="pl.186.24"></a><var>186.24</var>value of the fund determined under item (i);<br/>
<a id="pl.186.25"></a><var>186.25</var>    (vi) the board shall adjust the amount determined under item (v) by the cumulative <br/>
<a id="pl.186.26"></a><var>186.26</var>current balance determined under item (viii) and any negative balance carried forward <br/>
<a id="pl.186.27"></a><var>186.27</var>under item (ix);<br/>
<a id="pl.186.28"></a><var>186.28</var>    (vii) a positive amount resulting from the calculations in items (i) to (vi) is the excess <br/>
<a id="pl.186.29"></a><var>186.29</var>market value. A negative amount is the negative balance;<br/>
<a id="pl.186.30"></a><var>186.30</var>    (viii) the board shall allocate one-fifth of the excess market value or one-fifth of the <br/>
<a id="pl.186.31"></a><var>186.31</var>negative balance to each of five consecutive years, beginning with the fiscal year ending <br/>
<a id="pl.186.32"></a><var>186.32</var>the current June 30; and<br/>
<a id="pl.186.33"></a><var>186.33</var>    (ix) to calculate the postretirement adjustment under this paragraph based on <br/>
<a id="pl.186.34"></a><var>186.34</var>investment performance for a fiscal year, the board shall add together all excess market <br/>
<a id="pl.186.35"></a><var>186.35</var>value allocated to that year and subtract from the sum all negative balances allocated to <br/>
<a id="pl.186.36"></a><var>186.36</var>that year. If this calculation results in a negative number, the entire negative balance must <br/>
<a id="pl.187.1"></a><var>187.1</var>be carried forward and allocated to the next year. If the resulting amount is positive, a <br/>
<a id="pl.187.2"></a><var>187.2</var>postretirement adjustment is payable under this paragraph. The board shall express a <br/>
<a id="pl.187.3"></a><var>187.3</var>positive amount as a percentage of the total eligible required reserves certified to the <br/>
<a id="pl.187.4"></a><var>187.4</var>board under item (ii).<br/>
<a id="pl.187.5"></a><var>187.5</var>    (4) The board shall determine the amount of any postretirement adjustment which <br/>
<a id="pl.187.6"></a><var>187.6</var>is payable using the following procedure:<br/>
<a id="pl.187.7"></a><var>187.7</var>    (i) the total "eligible" required reserves as of the first of January next following the <br/>
<a id="pl.187.8"></a><var>187.8</var>end of the fiscal year for the annuitants and benefit recipients eligible to receive a full or <br/>
<a id="pl.187.9"></a><var>187.9</var>partial postretirement adjustment as determined by item (ii) must be certified to the board <br/>
<a id="pl.187.10"></a><var>187.10</var>by the actuary retained under section 
         <statute_ref>356.214</statute_ref>. The total "eligible" required reserves <br/>
<a id="pl.187.11"></a><var>187.11</var>must be determined by the actuary retained under section 
         <statute_ref>356.214</statute_ref> on the assumption that <br/>
<a id="pl.187.12"></a><var>187.12</var>all annuitants and benefit recipients eligible to receive a full or partial postretirement <br/>
<a id="pl.187.13"></a><var>187.13</var>adjustment will be alive on the January 1 in question; and<br/>
<a id="pl.187.14"></a><var>187.14</var>    (ii) the board shall add the percentage certified under clause (2) to any positive <br/>
<a id="pl.187.15"></a><var>187.15</var>percentage calculated under clause (3). The board shall not subtract from the percentage <br/>
<a id="pl.187.16"></a><var>187.16</var>certified under paragraph (b) any negative amount calculated under clause (3). The sum <br/>
<a id="pl.187.17"></a><var>187.17</var>of these percentages must be carried to five decimal places and must be certified as the <br/>
<a id="pl.187.18"></a><var>187.18</var>full postretirement adjustment percentage.<br/>
<a id="pl.187.19"></a><var>187.19</var>    (e) The board shall determine the amount of the postretirement adjustment payable <br/>
<a id="pl.187.20"></a><var>187.20</var>to each eligible annuitant and benefit recipient. The dollar amount of the postretirement <br/>
<a id="pl.187.21"></a><var>187.21</var>adjustment must be calculated by applying the certified postretirement adjustment <br/>
<a id="pl.187.22"></a><var>187.22</var>percentage to the amount of the monthly annuity or benefit payable to each eligible <br/>
<a id="pl.187.23"></a><var>187.23</var>annuitant or benefit recipient eligible for a full adjustment.<br/>
<a id="pl.187.24"></a><var>187.24</var>    The dollar amount of the partial postretirement adjustment payable to each annuitant <br/>
<a id="pl.187.25"></a><var>187.25</var>or benefit recipient eligible for a partial adjustment must be calculated by first determining <br/>
<a id="pl.187.26"></a><var>187.26</var>a partial percentage amount that bears the same ratio to the certified full adjustment <br/>
<a id="pl.187.27"></a><var>187.27</var>percentage amount as the number of full months of annuity or benefit receipt as of the <br/>
<a id="pl.187.28"></a><var>187.28</var>current June 30 bears to 12 full months. The partial percentage amount determined <br/>
<a id="pl.187.29"></a><var>187.29</var>must then be applied to the amount of the monthly annuity or benefit payable to each <br/>
<a id="pl.187.30"></a><var>187.30</var>annuitant or benefit recipient eligible to receive a partial postretirement adjustment. The <br/>
<a id="pl.187.31"></a><var>187.31</var>postretirement adjustments are payable on January 1 following the calculations required <br/>
<a id="pl.187.32"></a><var>187.32</var>under this section and must thereafter be included in the monthly annuity or benefit paid to <br/>
<a id="pl.187.33"></a><var>187.33</var>the recipient. Any adjustments under this section must be paid automatically unless the <br/>
<a id="pl.187.34"></a><var>187.34</var>intended recipient files a written notice with the applicable participating public pension <br/>
<a id="pl.187.35"></a><var>187.35</var>fund or plan requesting that the adjustment not be paid.<br/>
<a id="pl.188.1"></a><var>188.1</var>    (f) As of June 30 annually, the actuary retained under section 
         <statute_ref>356.214</statute_ref> shall calculate <br/>
<a id="pl.188.2"></a><var>188.2</var>the amount of required reserves representing any mortality gains and any mortality losses <br/>
<a id="pl.188.3"></a><var>188.3</var>incurred during the fiscal year and report the results of those calculations to the plan. <br/>
<a id="pl.188.4"></a><var>188.4</var>The actuary shall report separately the amount of the reserves for annuitants and benefit <br/>
<a id="pl.188.5"></a><var>188.5</var>recipients who are eligible for a postretirement benefit adjustment and the amount of <br/>
<a id="pl.188.6"></a><var>188.6</var>reserves for annuitants and benefit recipients who are not eligible for a postretirement <br/>
<a id="pl.188.7"></a><var>188.7</var>benefit adjustment. If the net amount of required reserves represents a mortality gain, <br/>
<a id="pl.188.8"></a><var>188.8</var>the board shall sell sufficient securities or transfer sufficient available cash to equal the <br/>
<a id="pl.188.9"></a><var>188.9</var>amount. If the amount of required reserves represents a mortality loss, the plan shall <br/>
<a id="pl.188.10"></a><var>188.10</var>transfer an amount equal to the amount of the net mortality loss. The amount of the <br/>
<a id="pl.188.11"></a><var>188.11</var>transfers must be determined before any postretirement benefit adjustments have been <br/>
<a id="pl.188.12"></a><var>188.12</var>made. All transfers resulting from mortality adjustments must be completed annually <br/>
<a id="pl.188.13"></a><var>188.13</var>by December 31 for the preceding June 30. Interest is payable on any transfers after <br/>
<a id="pl.188.14"></a><var>188.14</var>December 31 based upon the preretirement interest assumption for the participating plan <br/>
<a id="pl.188.15"></a><var>188.15</var>or fund as specified in section 
         <statute_ref>356.215, subdivision 8</statute_ref>, stated as a monthly rate. Book <br/>
<a id="pl.188.16"></a><var>188.16</var>values of the assets of the fund must be determined only after all adjustments for mortality <br/>
<a id="pl.188.17"></a><var>188.17</var>gains and losses for the fiscal year have been made.<br/>
<a id="pl.188.18"></a><var>188.18</var>    (g) All money necessary to meet the requirements of the certification of withdrawals <br/>
<a id="pl.188.19"></a><var>188.19</var>and all money necessary to pay postretirement adjustments under this section are hereby <br/>
<a id="pl.188.20"></a><var>188.20</var>and from time to time appropriated from the postretirement investment fund to the board.<br/>
<a id="pl.188.21"></a><var>188.21</var>    (h) Annually, following the calculation of any postretirement adjustment payable <br/>
<a id="pl.188.22"></a><var>188.22</var>from the retirement benefit fund, the board of trustees shall submit a report to the <br/>
<a id="pl.188.23"></a><var>188.23</var>executive director of the Legislative Commission on Pensions and Retirement and to the <br/>
<a id="pl.188.24"></a><var>188.24</var>commissioner of finance indicating the amount of any postretirement adjustment and <br/>
<a id="pl.188.25"></a><var>188.25</var>the underlying calculations on which that postretirement adjustment amount is based, <br/>
<a id="pl.188.26"></a><var>188.26</var>including the amount of dividends, the amount of interest, and the amount of net realized <br/>
<a id="pl.188.27"></a><var>188.27</var>capital gains or losses utilized in the calculations.<br/>
<a id="pl.188.28"></a><var>188.28</var>    (i) With respect to a former contributing member who began receiving a retirement <br/>
<a id="pl.188.29"></a><var>188.29</var>annuity or disability benefit under section 
         <statute_ref>422A.151, paragraph (a)</statute_ref>, clause (2), after June <br/>
<a id="pl.188.30"></a><var>188.30</var>30, 1997, or with respect to a survivor of a former contributing member who began <br/>
<a id="pl.188.31"></a><var>188.31</var>receiving a survivor benefit under section 
         <statute_ref>422A.151, paragraph (a)</statute_ref>, clause (2), after June <br/>
<a id="pl.188.32"></a><var>188.32</var>30, 1997, the reserves attributable to the one percent lower amount of the cost-of-living <br/>
<a id="pl.188.33"></a><var>188.33</var>adjustment payable to those annuity or benefit recipients annually must be transferred back <br/>
<a id="pl.188.34"></a><var>188.34</var>to the deposit accumulation fund to the credit of the Metropolitan Airports Commission. <br/>
<a id="pl.188.35"></a><var>188.35</var>The calculation of this annual reduced cost-of-living adjustment reserve transfer must be <br/>
<a id="pl.188.36"></a><var>188.36</var>reviewed by the actuary retained under section 
         <statute_ref>356.214</statute_ref>.<br/>
<a id="pl.189.1"></a><var>189.1</var><b>EFFECTIVE DATE.</b>This section is effective retroactively from June 30, 2008.<br/>
<br/>
<a id="bill.11.4.0"></a><a id="pl.189.2"></a><var>189.2</var>    Sec. 4. Minnesota Statutes 2008, section 422A.08, subdivision 5, is amended to read:<br/>
<a id="pl.189.3"></a><var>189.3</var>    Subd. 5. <b>Service credit purchase.</b> Any contributor who prior to entering the service <br/>
<a id="pl.189.4"></a><var>189.4</var>of the city was an employee of a public corporation, is authorized, using the procedure in <br/>
<a id="pl.189.5"></a><var>189.5</var>subdivision 5a section 356.551, to purchase allowable service credit in the retirement fund <br/>
<a id="pl.189.6"></a><var>189.6</var>for employment by the public corporation in the same manner as though the service had <br/>
<a id="pl.189.7"></a><var>189.7</var>been rendered to the city, providing that the individual has not received service credit and <br/>
<a id="pl.189.8"></a><var>189.8</var>is not eligible to receive service credit for this period under any other plan or fund listed <br/>
<a id="pl.189.9"></a><var>189.9</var>in section 
         <statute_ref>356.30, subdivision 3</statute_ref>. Before receiving credit for service rendered to a public <br/>
<a id="pl.189.10"></a><var>189.10</var>corporation as herein set forth, the contributing employee shall make application therefor <br/>
<a id="pl.189.11"></a><var>189.11</var>in writing to the retirement board, and shall contribute to the retirement fund the amount <br/>
<a id="pl.189.12"></a><var>189.12</var>specified in subdivision 5a section 356.551.  <br/>
<a id="pl.189.13"></a><var>189.13</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.11.5.0"></a><a id="pl.189.14"></a><var>189.14</var>    Sec. 5. Laws 1989, chapter 319, article 11, section 13, is amended to read:<br/>
<a id="pl.189.15"></a><var>189.15</var>    Sec. 13. <b>REPEALER.</b><br/>
<a id="pl.189.16"></a><var>189.16</var>    Laws 1967, chapter 815; Laws 1978, chapter 683; and Laws 1981, chapter 224, <br/>
<a id="pl.189.17"></a><var>189.17</var>sections 2 and 5 section 245, are repealed.<br/>
<a id="pl.189.18"></a><var>189.18</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment <br/>
<a id="pl.189.19"></a><var>189.19</var>and applies retroactively from June 2, 1989.<br/>
<br/>
<a id="bill.11.6.0"></a><a id="pl.189.20"></a><var>189.20</var>    Sec. 6. Laws 2008, chapter 349, article 14, section 13, is amended to read:<br/>
<a id="pl.189.21"></a><var>189.21</var>    Sec. 13. <b>REPEALER OF PRIOR INCONSISTENT SPECIAL VOLUNTEER </b><br/>
<a id="pl.189.22"></a><var>189.22</var><b>FIRE RELIEF ASSOCIATION ANCILLARY BENEFIT LEGISLATION.</b><br/>
<a id="pl.189.23"></a><var>189.23</var>    Subdivision 1. <b>Anoka.</b> Laws 1969, chapter 352 252, section 1, subdivisions 3, <br/>
<a id="pl.189.24"></a><var>189.24</var>4, 5, and 6, are repealed.<br/>
<a id="pl.189.25"></a><var>189.25</var>    Subd. 2. <b>Butterfield.</b> Laws 1975, chapter 185, section 1, is repealed.<br/>
<a id="pl.189.26"></a><var>189.26</var>    Subd. 3. <b>Coon Rapids.</b> Laws 1973, chapter 304, section 1, subdivisions 3, 4, 5, 6, <br/>
<a id="pl.189.27"></a><var>189.27</var>7, 8, and 9, are repealed.<br/>
<a id="pl.189.28"></a><var>189.28</var>    Subd. 4. <b>Edina.</b> (1) Laws 1965, chapter 592, section 3, as amended added by Laws <br/>
<a id="pl.189.29"></a><var>189.29</var>1969, chapter 644, section 2, and amended by Laws 1975, chapter 229, section 2; (2) Laws <br/>
<a id="pl.189.30"></a><var>189.30</var>1965, chapter 592, section 4, as amended added by Laws 1969, chapter 644, section 2, and <br/>
<a id="pl.189.31"></a><var>189.31</var>amended by Laws 1975, chapter 229, section 3, Laws 1985, chapter 261, section 37, and <br/>
<a id="pl.190.1"></a><var>190.1</var>Laws 1991, chapter 125, section 1; (3) Laws 1985, chapter 261, section 37, as amended by <br/>
<a id="pl.190.2"></a><var>190.2</var>Laws 1991, chapter 125, section 1; and (4) Laws 1991, chapter 125, section 1, are repealed.<br/>
<a id="pl.190.3"></a><var>190.3</var>    Subd. 5. <b>Fairmont.</b> Laws 1967, chapter 575, sections 2, as amended by Laws 1979, <br/>
<a id="pl.190.4"></a><var>190.4</var>chapter 201, section 23; 3; and 4, are repealed.<br/>
<a id="pl.190.5"></a><var>190.5</var>    Subd. 6. <b>Falcon Heights.</b> Laws 1969, chapter 526, sections 3; 4; 5, as amended <br/>
<a id="pl.190.6"></a><var>190.6</var>by Laws 1974, chapter 208, section 2; and 7, as amended by Laws 1974, chapter 208, <br/>
<a id="pl.190.7"></a><var>190.7</var>section 3, are repealed.<br/>
<a id="pl.190.8"></a><var>190.8</var>    Subd. 7. <b>Golden Valley.</b> Laws 1971, chapter 140, sections 2, as amended by Laws <br/>
<a id="pl.190.9"></a><var>190.9</var>1973, chapter 30, section 2; 3, as amended by Laws 1973, chapter 30, section 3; 4, as <br/>
<a id="pl.190.10"></a><var>190.10</var>amended by Laws 1973, chapter 30, section 4; and 5, as amended by Laws 1973, chapter <br/>
<a id="pl.190.11"></a><var>190.11</var>30, section 5; and Laws 1993, chapter 244, article 4, section 1, are repealed.<br/>
<a id="pl.190.12"></a><var>190.12</var>    Subd. 8. <b>Wayzata.</b> Laws 1973, chapter 472, section 1, as amended by Laws 1976, <br/>
<a id="pl.190.13"></a><var>190.13</var>chapter 272, section 1, and Laws 1979, chapter 201, section 33, is repealed.<br/>
<a id="pl.190.14"></a><var>190.14</var>    Subd. 9. <b>White Bear Lake.</b> Laws 1971, chapter 214, section 1, subdivisions <br/>
<a id="pl.190.15"></a><var>190.15</var>sections 1, 2, 3, 4, and 5, are repealed.<br/>
<a id="pl.190.16"></a><var>190.16</var><b>EFFECTIVE DATE; LOCAL APPROVAL.</b>(a) Subdivision 1 is effective the day <br/>
<a id="pl.190.17"></a><var>190.17</var>after the governing body of Anoka and its chief clerical officer timely complete their <br/>
<a id="pl.190.18"></a><var>190.18</var>compliance with Minnesota Statutes, section 
         <statute_ref>645.021, subdivisions 2</statute_ref> and 3, after June <br/>
<a id="pl.190.19"></a><var>190.19</var>30, 2009.<br/>
<a id="pl.190.20"></a><var>190.20</var>    (b) Subdivision 2 is effective the day after the governing body of Butterfield and its <br/>
<a id="pl.190.21"></a><var>190.21</var>chief clerical officer timely complete their compliance with Minnesota Statutes, section <br/>
<statute_ref><a id="pl.190.22"></a><var>190.22</var>645.021, subdivisions 2
         </statute_ref> and 3, after June 30, 2009.<br/>
<a id="pl.190.23"></a><var>190.23</var>    (c) Subdivision 3 is effective the day after the governing body of Coon Rapids and <br/>
<a id="pl.190.24"></a><var>190.24</var>its chief clerical officer timely complete their compliance with Minnesota Statutes, section <br/>
<statute_ref><a id="pl.190.25"></a><var>190.25</var>645.021, subdivisions 2
         </statute_ref> and 3, after June 30, 2009.<br/>
<a id="pl.190.26"></a><var>190.26</var>    (d) Subdivision 4 is effective the day after the governing body of Edina and its <br/>
<a id="pl.190.27"></a><var>190.27</var>chief clerical officer timely complete their compliance with Minnesota Statutes, section <br/>
<statute_ref><a id="pl.190.28"></a><var>190.28</var>645.021, subdivisions 2
         </statute_ref> and 3, after June 30, 2009.<br/>
<a id="pl.190.29"></a><var>190.29</var>    (e) Subdivision 5 is effective the day after the governing body of Fairmont and its <br/>
<a id="pl.190.30"></a><var>190.30</var>chief clerical officer timely complete their compliance with Minnesota Statutes, section <br/>
<statute_ref><a id="pl.190.31"></a><var>190.31</var>645.021, subdivisions 2
         </statute_ref> and 3, after June 30, 2009.<br/>
<a id="pl.190.32"></a><var>190.32</var>    (f) Subdivision 6 is effective the day after the governing body of Falcon Heights <br/>
<a id="pl.190.33"></a><var>190.33</var>and its chief clerical officer timely complete their compliance with Minnesota Statutes, <br/>
<a id="pl.190.34"></a><var>190.34</var>section 
         <statute_ref>645.021, subdivisions 2</statute_ref> and 3, after June 30, 2009.<br/>
<a id="pl.191.1"></a><var>191.1</var>    (g) Subdivision 7 is effective the day after the governing body of Golden Valley and <br/>
<a id="pl.191.2"></a><var>191.2</var>its chief clerical officer timely complete their compliance with Minnesota Statutes, section <br/>
<statute_ref><a id="pl.191.3"></a><var>191.3</var>645.021, subdivisions 2
         </statute_ref> and 3, after June 30, 2009.<br/>
<a id="pl.191.4"></a><var>191.4</var>    (h) Subdivision 8 is effective the day after the governing body of Wayzata and its <br/>
<a id="pl.191.5"></a><var>191.5</var>chief clerical officer timely complete their compliance with Minnesota Statutes, section <br/>
<statute_ref><a id="pl.191.6"></a><var>191.6</var>645.021, subdivisions 2
         </statute_ref> and 3, after June 30, 2009.<br/>
<a id="pl.191.7"></a><var>191.7</var>    (i) Subdivision 9 is effective the day after the governing body of White Bear Lake <br/>
<a id="pl.191.8"></a><var>191.8</var>and its chief clerical officer timely complete their compliance with Minnesota Statutes, <br/>
<a id="pl.191.9"></a><var>191.9</var>section 
         <statute_ref>645.021, subdivisions 2</statute_ref> and 3, after June 30, 2009.<br/>
<a id="pl.191.10"></a><var>191.10</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.11.7.0"></a><a id="pl.191.11"></a><var>191.11</var>    Sec. 7. <b> REPEALER.</b><br/>
<a id="pl.191.12"></a><var>191.12</var>Minnesota Statutes 2008, sections 356.2165; and 422A.08, subdivision 5a, are <br/>
<a id="pl.191.13"></a><var>191.13</var>repealed.<br/>
<a id="pl.191.14"></a><var>191.14</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.12.0.0"></a>

<a id="bill.12.1.0"></a><a id="pl.191.17"></a><var>191.17</var>    Section 1. Minnesota Statutes 2008, section 352.86, subdivision 1, is amended to read:<br/>
<a id="pl.191.18"></a><var>191.18</var>    Subdivision 1. <b>Eligibility</b><b>; retirement annuity</b><b>.</b> A person who is employed by <br/>
<a id="pl.191.19"></a><var>191.19</var>This section applies to any employee of the Department of Transportation in the civil <br/>
<a id="pl.191.20"></a><var>191.20</var>service employment classification of aircraft pilot or chief pilot, who is covered for <br/>
<a id="pl.191.21"></a><var>191.21</var>that employment by the general employee retirement plan of the system under section <br/>
<a id="pl.191.22"></a><var>191.22</var><statute_ref>352.01, subdivision 23</statute_ref>, and who elects this elected before June 1, 2008, special retirement <br/>
<a id="pl.191.23"></a><var>191.23</var>coverage under subdivision 3, who is prohibited from performing the duties of aircraft <br/>
<a id="pl.191.24"></a><var>191.24</var>pilot or chief pilot after reaching age 65 by a policy adopted by the commissioner of <br/>
<a id="pl.191.25"></a><var>191.25</var>transportation, and this section by an irrevocable election on forms provided by the <br/>
<a id="pl.191.26"></a><var>191.26</var>executive director.<br/>
<a id="pl.191.27"></a><var>191.27</var>    Subd. 2. <b>Retirement annuity.</b> An eligible person under subdivision 1 who <br/>
<a id="pl.191.28"></a><var>191.28</var>terminates employment as a state employee on or after age 62 but prior to normal <br/>
<a id="pl.191.29"></a><var>191.29</var>retirement age is entitled, upon application, to a retirement annuity computed under <br/>
<a id="pl.191.30"></a><var>191.30</var>section 
         <statute_ref>352.115, subdivisions 2 and 3</statute_ref>, without any reduction for early retirement under <br/>
<a id="pl.191.31"></a><var>191.31</var>section 
         <statute_ref>352.116, subdivision 1.<br/>
</statute_ref><a id="pl.191.32"></a><var>191.32</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.12.2.0"></a><a id="pl.192.1"></a><var>192.1</var>    Sec. 2. Minnesota Statutes 2008, section 352.86, subdivision 1a, is amended to read:<br/>
<a id="pl.192.2"></a><var>192.2</var>    Subd. 1a 3. <b>Disability benefits.</b> An employee described in subdivision 1, who is <br/>
<a id="pl.192.3"></a><var>192.3</var>less than 62 years of age and who becomes disabled and physically or mentally unfit <br/>
<a id="pl.192.4"></a><var>192.4</var>to perform occupational duties due to injury, sickness, or other disability, and who is <br/>
<a id="pl.192.5"></a><var>192.5</var>found disqualified for retention as chief pilot or pilot as a result of a physical examination <br/>
<a id="pl.192.6"></a><var>192.6</var>required by applicable federal laws or regulations, is entitled upon application to disability <br/>
<a id="pl.192.7"></a><var>192.7</var>benefits for a maximum of five years in the amount of may submit an application for <br/>
<a id="pl.192.8"></a><var>192.8</var>disability benefits calculated under section 352.113, subdivision 3. In considering the <br/>
<a id="pl.192.9"></a><var>192.9</var>disability benefit application, the executive director must use the disability standard <br/>
<a id="pl.192.10"></a><var>192.10</var>specified in this subdivision rather than the total and permanent standard specified in <br/>
<a id="pl.192.11"></a><var>192.11</var>section 352.113, subdivision 1. If disability benefits commence under section 352.113, <br/>
<a id="pl.192.12"></a><var>192.12</var>subdivision 3, the appointing authority shall also provide payments from the state airports <br/>
<a id="pl.192.13"></a><var>192.13</var>fund, totaling 75 percent of current monthly salary, to be paid by the appointing authority <br/>
<a id="pl.192.14"></a><var>192.14</var>less the amount payable under section 352.113, subdivision 3. Payments from the state <br/>
<a id="pl.192.15"></a><var>192.15</var>airports fund must be made for five years or until normal retirement age, whichever is <br/>
<a id="pl.192.16"></a><var>192.16</var>earlier. Disability benefits must not continue after the employee reaches age 62. These <br/>
<a id="pl.192.17"></a><var>192.17</var>benefits are in lieu of all other state benefits for the disability, including, but not limited to, <br/>
<a id="pl.192.18"></a><var>192.18</var>workers' compensation benefits.<br/>
<a id="pl.192.19"></a><var>192.19</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.12.3.0"></a><a id="pl.192.20"></a><var>192.20</var>    Sec. 3. Minnesota Statutes 2008, section 352.86, subdivision 2, is amended to read:<br/>
<a id="pl.192.21"></a><var>192.21</var>    Subd. 2 4. <b>Additional contributions.</b> The special retirement annuity authorized <br/>
<a id="pl.192.22"></a><var>192.22</var>by subdivision 1 shall be financed by An employee covered by this section must pay an <br/>
<a id="pl.192.23"></a><var>192.23</var>additional employee contribution from the covered aircraft pilot or chief pilot of 1.6 <br/>
<a id="pl.192.24"></a><var>192.24</var>percent and an employer contribution from of salary. The Department of Transportation <br/>
<a id="pl.192.25"></a><var>192.25</var>must pay an additional employer contribution of of 1.6 percent of salary. These <br/>
<a id="pl.192.26"></a><var>192.26</var>contributions are in addition to the contributions required by section 
         <statute_ref>352.04, subdivisions <br/>
<a id="pl.192.27"></a><var>192.27</var>2 and 3
         </statute_ref>. They must be made in the manner provided for in section 
         <statute_ref>352.04, subdivisions 4, <br/>
<a id="pl.192.28"></a><var>192.28</var>5, and 6
         </statute_ref>.  <br/>
<a id="pl.192.29"></a><var>192.29</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.12.4.0"></a><a id="pl.192.30"></a><var>192.30</var>    Sec. 4. Minnesota Statutes 2008, section 353.01, subdivision 2, is amended to read:<br/>
<a id="pl.192.31"></a><var>192.31</var>    Subd. 2. <b>Public employee.</b> "Public employee" means a governmental employee <br/>
<a id="pl.192.32"></a><var>192.32</var>performing personal services for a governmental subdivision defined in subdivision 6, <br/>
<a id="pl.192.33"></a><var>192.33</var>whose salary is paid, in whole or in part, from revenue derived from taxation, fees, <br/>
<a id="pl.193.1"></a><var>193.1</var>assessments, or from other sources. The term includes the classes of persons described or <br/>
<a id="pl.193.2"></a><var>193.2</var>listed in subdivision 2a. The term also includes persons who elect association membership <br/>
<a id="pl.193.3"></a><var>193.3</var>under subdivision 2d, paragraph (a), and persons for whom the applicable governmental <br/>
<a id="pl.193.4"></a><var>193.4</var>subdivision had elected association membership under subdivision 2d, paragraph (b). The <br/>
<a id="pl.193.5"></a><var>193.5</var>term also includes full-time employees of the Dakota County Agricultural Society. The <br/>
<a id="pl.193.6"></a><var>193.6</var>term excludes the classes of persons listed in subdivision 2b for purposes of membership <br/>
<a id="pl.193.7"></a><var>193.7</var>in the association.<br/>
<a id="pl.193.8"></a><var>193.8</var><b>EFFECTIVE DATE.</b>This section is effective the first day of the first full payroll <br/>
<a id="pl.193.9"></a><var>193.9</var>period commencing after final enactment.<br/>
<br/>
<a id="bill.12.5.0"></a><a id="pl.193.10"></a><var>193.10</var>    Sec. 5. Minnesota Statutes 2008, section 353.01, subdivision 2a, is amended to read:<br/>
<a id="pl.193.11"></a><var>193.11</var>    Subd. 2a. <b>Included employees.</b> (a) Public employees whose salary from <br/>
<a id="pl.193.12"></a><var>193.12</var>employment in one or more positions within one governmental subdivision exceeds $425 <br/>
<a id="pl.193.13"></a><var>193.13</var>in any month shall participate as members of the association. If the salary is less than <br/>
<a id="pl.193.14"></a><var>193.14</var>$425 in a subsequent month, the employee retains membership eligibility. Eligible public <br/>
<a id="pl.193.15"></a><var>193.15</var>employees shall participate as members of the association with retirement coverage by <br/>
<a id="pl.193.16"></a><var>193.16</var>the public employees retirement plan or the public employees police and fire retirement <br/>
<a id="pl.193.17"></a><var>193.17</var>plan under this chapter, or the local government correctional employees retirement plan <br/>
<a id="pl.193.18"></a><var>193.18</var>under chapter 353E, whichever applies, as a condition of their employment on the first <br/>
<a id="pl.193.19"></a><var>193.19</var>day of employment unless they:<br/>
<a id="pl.193.20"></a><var>193.20</var>    (1) are specifically excluded under subdivision 2b;<br/>
<a id="pl.193.21"></a><var>193.21</var>    (2) do not exercise their option to elect retirement coverage in the association as <br/>
<a id="pl.193.22"></a><var>193.22</var>provided in subdivision 2d, paragraph (a); or<br/>
<a id="pl.193.23"></a><var>193.23</var>    (3) are employees of the governmental subdivisions listed in subdivision 2d, <br/>
<a id="pl.193.24"></a><var>193.24</var>paragraph (b), where the governmental subdivision has not elected to participate as a <br/>
<a id="pl.193.25"></a><var>193.25</var>governmental subdivision covered by the association.<br/>
<a id="pl.193.26"></a><var>193.26</var>    (b) A public employee who was a member of the association on June 30, 2002, <br/>
<a id="pl.193.27"></a><var>193.27</var>based on employment that qualified for membership coverage by the public employees <br/>
<a id="pl.193.28"></a><var>193.28</var>retirement plan or the public employees police and fire plan under this chapter, or the <br/>
<a id="pl.193.29"></a><var>193.29</var>local government correctional employees retirement plan under chapter 353E as of June <br/>
<a id="pl.193.30"></a><var>193.30</var>30, 2002, retains that membership for the duration of the person's employment in that <br/>
<a id="pl.193.31"></a><var>193.31</var>position or incumbency in elected office. Except as provided in subdivision 28, the person <br/>
<a id="pl.193.32"></a><var>193.32</var>shall participate as a member until the employee or elected official terminates public <br/>
<a id="pl.193.33"></a><var>193.33</var>employment under subdivision 11a or terminates membership under subdivision 11b.<br/>
<a id="pl.193.34"></a><var>193.34</var>    (c) Public employees under paragraph (a) include:<br/>
<a id="pl.194.1"></a><var>194.1</var>(1) physicians under section 
         <statute_ref>353D.01</statute_ref>, subdivision 2, who do not elect public <br/>
<a id="pl.194.2"></a><var>194.2</var>employees defined contribution plan coverage under section 
         <statute_ref>353D.02</statute_ref>, subdivision 2.;<br/>
<a id="pl.194.3"></a><var>194.3</var>(2) full-time employees of the Dakota County Agricultural Society; and<br/>
<a id="pl.194.4"></a><var>194.4</var>(3) employees of the Minneapolis Firefighters Relief Association or Minneapolis <br/>
<a id="pl.194.5"></a><var>194.5</var>Police Relief Association who are not excluded employees under subdivision 2b due to <br/>
<a id="pl.194.6"></a><var>194.6</var>coverage by the relief association pension plan and who elect Public Employee Retirement <br/>
<a id="pl.194.7"></a><var>194.7</var>Association general plan coverage under section 5.<br/>
<a id="pl.194.8"></a><var>194.8</var><b>EFFECTIVE DATE.</b>This section is effective the first day of the first full payroll <br/>
<a id="pl.194.9"></a><var>194.9</var>period commencing after final enactment.<br/>
<br/>
<a id="bill.12.6.0"></a><a id="pl.194.10"></a><var>194.10</var>    Sec. 6. Minnesota Statutes 2008, section 353.01, subdivision 6, is amended to read:<br/>
<a id="pl.194.11"></a><var>194.11</var>    Subd. 6. <b>Governmental subdivision.</b> (a) "Governmental subdivision" means a <br/>
<a id="pl.194.12"></a><var>194.12</var>county, city, town, school district within this state, or a department, unit or instrumentality <br/>
<a id="pl.194.13"></a><var>194.13</var>of state or local government, or any public body established under state or local <br/>
<a id="pl.194.14"></a><var>194.14</var>authority that has a governmental purpose, is under public control, is responsible for the <br/>
<a id="pl.194.15"></a><var>194.15</var>employment and payment of the salaries of employees of the entity, and receives a major <br/>
<a id="pl.194.16"></a><var>194.16</var>portion of its revenues from taxation, fees, assessments or from other public sources.<br/>
<a id="pl.194.17"></a><var>194.17</var>    (b) Governmental subdivision also means the Public Employees Retirement <br/>
<a id="pl.194.18"></a><var>194.18</var>Association, the League of Minnesota Cities, the Association of Metropolitan <br/>
<a id="pl.194.19"></a><var>194.19</var>Municipalities, charter schools formed under section 
         <statute_ref>124D.10</statute_ref>, service cooperatives <br/>
<a id="pl.194.20"></a><var>194.20</var>exercising retirement plan participation under section 
         <statute_ref>123A.21, subdivision 5</statute_ref>, joint powers <br/>
<a id="pl.194.21"></a><var>194.21</var>boards organized under section 
         <statute_ref>471.59, subdivision 11</statute_ref>, paragraph (a), family service <br/>
<a id="pl.194.22"></a><var>194.22</var>collaboratives and children's mental health collaboratives organized under section 
         <statute_ref>471.59</statute_ref>, <br/>
<a id="pl.194.23"></a><var>194.23</var>subdivision 11, paragraph (b) or (c), provided that the entities creating the collaboratives <br/>
<a id="pl.194.24"></a><var>194.24</var>are governmental units that otherwise qualify for retirement plan membership, public <br/>
<a id="pl.194.25"></a><var>194.25</var>hospitals owned or operated by, or an integral part of, a governmental subdivision or <br/>
<a id="pl.194.26"></a><var>194.26</var>governmental subdivisions, the Association of Minnesota Counties, the Minnesota <br/>
<a id="pl.194.27"></a><var>194.27</var>Inter-county Association, the Minnesota Municipal Utilities Association, the Metropolitan <br/>
<a id="pl.194.28"></a><var>194.28</var>Airports Commission, the University of Minnesota with respect to police officers covered <br/>
<a id="pl.194.29"></a><var>194.29</var>by the public employees police and fire retirement plan, the Minneapolis Employees <br/>
<a id="pl.194.30"></a><var>194.30</var>Retirement Fund for employment initially commenced after June 30, 1979, the Range <br/>
<a id="pl.194.31"></a><var>194.31</var>Association of Municipalities and Schools, soil and water conservation districts, economic <br/>
<a id="pl.194.32"></a><var>194.32</var>development authorities created or operating under sections 
         <statute_ref>469.090</statute_ref> to 
         <statute_ref>469.108</statute_ref>, the Port <br/>
<a id="pl.194.33"></a><var>194.33</var>Authority of the city of St. Paul, the Spring Lake Park Fire Department, incorporated, <br/>
<a id="pl.194.34"></a><var>194.34</var>the Lake Johanna Volunteer Fire Department, incorporated, the Red Wing Environmental <br/>
<a id="pl.194.35"></a><var>194.35</var>Learning Center, the Dakota County Agricultural Society, and Hennepin Healthcare <br/>
<a id="pl.195.1"></a><var>195.1</var>System, Inc., and the Minneapolis Firefighters Relief Association and Minneapolis Police <br/>
<a id="pl.195.2"></a><var>195.2</var>Relief Association with respect to staff covered by the Public Employees Retirement <br/>
<a id="pl.195.3"></a><var>195.3</var>Association general plan.<br/>
<a id="pl.195.4"></a><var>195.4</var>    (c) Governmental subdivision does not mean any municipal housing and <br/>
<a id="pl.195.5"></a><var>195.5</var>redevelopment authority organized under the provisions of sections 
         <statute_ref>469.001</statute_ref> to 
         <statute_ref>469.047</statute_ref>; <br/>
<a id="pl.195.6"></a><var>195.6</var>or any port authority organized under sections 
         <statute_ref>469.048</statute_ref> to 
         <statute_ref>469.089</statute_ref> other than the Port <br/>
<a id="pl.195.7"></a><var>195.7</var>Authority of the city of St. Paul; or any hospital district organized or reorganized prior <br/>
<a id="pl.195.8"></a><var>195.8</var>to July 1, 1975, under sections 
         <statute_ref>447.31</statute_ref> to 
         <statute_ref>447.37</statute_ref> or the successor of the district; or the <br/>
<a id="pl.195.9"></a><var>195.9</var>board of a family service collaborative or children's mental health collaborative organized <br/>
<a id="pl.195.10"></a><var>195.10</var>under sections 
         <statute_ref>124D.23</statute_ref>, 
         <statute_ref>245.491</statute_ref> to 
         <statute_ref>245.495</statute_ref>, or 
         <statute_ref>471.59</statute_ref>, if that board is not controlled <br/>
<a id="pl.195.11"></a><var>195.11</var>by representatives of governmental units.<br/>
<a id="pl.195.12"></a><var>195.12</var>    (d) A nonprofit corporation governed by chapter 317A or organized under Internal <br/>
<a id="pl.195.13"></a><var>195.13</var>Revenue Code, section 501(c)(3), which is not covered by paragraph (a) or (b), is not a <br/>
<a id="pl.195.14"></a><var>195.14</var>governmental subdivision unless the entity has obtained a written advisory opinion from <br/>
<a id="pl.195.15"></a><var>195.15</var>the United States Department of Labor or a ruling from the Internal Revenue Service <br/>
<a id="pl.195.16"></a><var>195.16</var>declaring the entity to be an instrumentality of the state so as to provide that any future <br/>
<a id="pl.195.17"></a><var>195.17</var>contributions by the entity on behalf of its employees are contributions to a governmental <br/>
<a id="pl.195.18"></a><var>195.18</var>plan within the meaning of Internal Revenue Code, section 414(d).<br/>
<a id="pl.195.19"></a><var>195.19</var>    (e) A public body created by state or local authority may request membership on <br/>
<a id="pl.195.20"></a><var>195.20</var>behalf of its employees by providing sufficient evidence that it meets the requirements in <br/>
<a id="pl.195.21"></a><var>195.21</var>paragraph (a).<br/>
<a id="pl.195.22"></a><var>195.22</var>    (f) An entity determined to be a governmental subdivision is subject to the reporting <br/>
<a id="pl.195.23"></a><var>195.23</var>requirements of this chapter upon receipt of a written notice of eligibility from the <br/>
<a id="pl.195.24"></a><var>195.24</var>association. <br/>
<a id="pl.195.25"></a><var>195.25</var><b>EFFECTIVE DATE.</b>This section is effective the first day of the first full payroll <br/>
<a id="pl.195.26"></a><var>195.26</var>period commencing after final enactment.<br/>
<br/>
<a id="bill.12.7.0"></a><a id="pl.195.27"></a><var>195.27</var>    Sec. 7. <b>PRIOR PENSION PLAN TERMINATION.</b><br/>
<a id="pl.195.28"></a><var>195.28</var>As of the effective date of this section, contributions to the defined contribution or <br/>
<a id="pl.195.29"></a><var>195.29</var>defined benefit pension plan or plans which previously provided primary pension coverage <br/>
<a id="pl.195.30"></a><var>195.30</var>for any individual who elects coverage by the general employees retirement plan of the <br/>
<a id="pl.195.31"></a><var>195.31</var>Public Employee Retirement Association under section 5 must terminate and must not be <br/>
<a id="pl.195.32"></a><var>195.32</var>resumed.<br/>
<a id="pl.195.33"></a><var>195.33</var><b>EFFECTIVE DATE.</b>This section is effective the first day of the first full payroll <br/>
<a id="pl.195.34"></a><var>195.34</var>period commencing after final enactment.<br/>
<br/>
<a id="bill.12.8.0"></a><a id="pl.196.1"></a><var>196.1</var>    Sec. 8. <b>PUBLIC EMPLOYEES RETIREMENT ASSOCIATION; SERVICE </b><br/>
<a id="pl.196.2"></a><var>196.2</var><b>CREDIT PURCHASE AUTHORIZATION.</b><br/>
<a id="pl.196.3"></a><var>196.3</var>(a) Notwithstanding any provision of Minnesota Statutes, chapter 353, to the <br/>
<a id="pl.196.4"></a><var>196.4</var>contrary, unless the period to be purchased is credited as allowable service by another <br/>
<a id="pl.196.5"></a><var>196.5</var>retirement plan covered by Minnesota Statutes, section 356.30, or would be ineligible <br/>
<a id="pl.196.6"></a><var>196.6</var>for credit as allowable service under Minnesota Statutes, section 353.01, subdivision <br/>
<a id="pl.196.7"></a><var>196.7</var>16, if the service had been performed after the effective date of this section, an eligible <br/>
<a id="pl.196.8"></a><var>196.8</var>person described in paragraph (b) may purchase allowable service credit under Minnesota <br/>
<a id="pl.196.9"></a><var>196.9</var>Statutes, section 353.01, subdivision 16, from the general employees retirement plan of <br/>
<a id="pl.196.10"></a><var>196.10</var>the Public Employees Retirement Association for the period specified in paragraph (c), by <br/>
<a id="pl.196.11"></a><var>196.11</var>making the payment required under paragraph (d). <br/>
<a id="pl.196.12"></a><var>196.12</var>(b) An eligible person is a person who began employment as staff to the Minneapolis <br/>
<a id="pl.196.13"></a><var>196.13</var>Firefighters Relief Association or the Minneapolis Police Relief Association prior to <br/>
<a id="pl.196.14"></a><var>196.14</var>the effective date of this section, and due to that employment became a member of the <br/>
<a id="pl.196.15"></a><var>196.15</var>general employees retirement plan of the Public Employees Retirement Association on <br/>
<a id="pl.196.16"></a><var>196.16</var>the effective date of this section.<br/>
<a id="pl.196.17"></a><var>196.17</var>(c) The period of prior service credit available for purchase is the period of <br/>
<a id="pl.196.18"></a><var>196.18</var>employment with the Minneapolis Firefighters Relief Association or the Minneapolis <br/>
<a id="pl.196.19"></a><var>196.19</var>Police Relief Association,  whichever is applicable, which would be includable service <br/>
<a id="pl.196.20"></a><var>196.20</var>under the Public Employees Retirement Association general plan if that service had been <br/>
<a id="pl.196.21"></a><var>196.21</var>performed after the effective date rather than before. <br/>
<a id="pl.196.22"></a><var>196.22</var>(d) Except as otherwise stated under this section, Minnesota Statutes, section <br/>
<a id="pl.196.23"></a><var>196.23</var>356.551, applies to this purchase. <br/>
<a id="pl.196.24"></a><var>196.24</var>(e) An eligible person may purchase allowable service credit for a portion of the <br/>
<a id="pl.196.25"></a><var>196.25</var>eligible period, resulting in prorated service credit.<br/>
<a id="pl.196.26"></a><var>196.26</var>(f) The election to purchase prior service credit under this section must be made in <br/>
<a id="pl.196.27"></a><var>196.27</var>writing and must be filed with the executive director of the Public Employees Retirement <br/>
<a id="pl.196.28"></a><var>196.28</var>Association.<br/>
<a id="pl.196.29"></a><var>196.29</var>(g) This section expires one year after the effective date of this section.<br/>
<a id="pl.196.30"></a><var>196.30</var><b>EFFECTIVE DATE.</b>This section is effective the first day of the first full payroll <br/>
<a id="pl.196.31"></a><var>196.31</var>period commencing after final enactment.<br/>
<br/>
<a id="bill.12.9.0"></a><a id="pl.196.32"></a><var>196.32</var>    Sec. 9. <b>ELECTION OF COVERAGE.</b><br/>
<a id="pl.196.33"></a><var>196.33</var>(a) An individual who is an employee of the Minneapolis Firefighters Relief <br/>
<a id="pl.196.34"></a><var>196.34</var>Association or the Minneapolis Police Relief Association on the effective date of this <br/>
<a id="pl.196.35"></a><var>196.35</var>section, and who is not excluded under section 353.01, subdivision 2b, due to coverage <br/>
<a id="pl.197.1"></a><var>197.1</var>by the relief association pension plan, may elect prospective coverage by the general <br/>
<a id="pl.197.2"></a><var>197.2</var>employees retirement plan of the Public Employees Retirement Association under an <br/>
<a id="pl.197.3"></a><var>197.3</var>election as specified in this section.<br/>
<a id="pl.197.4"></a><var>197.4</var>(b) An eligible individual under paragraph (a) may elect coverage by the general <br/>
<a id="pl.197.5"></a><var>197.5</var>employees retirement plan of the Public Employees Retirement Association by making an <br/>
<a id="pl.197.6"></a><var>197.6</var>election on a form provided by the Public Employees Retirement Association executive <br/>
<a id="pl.197.7"></a><var>197.7</var>director. For an election to be valid, it must be made within 90 days of the effective date <br/>
<a id="pl.197.8"></a><var>197.8</var>of this section and is irrevocable.<br/>
<a id="pl.197.9"></a><var>197.9</var>(c) The Public Employees Retirement Association must provide eligible individuals <br/>
<a id="pl.197.10"></a><var>197.10</var>with information and counseling regarding the general employees retirement plan of the <br/>
<a id="pl.197.11"></a><var>197.11</var>Public Employees Retirement Association and the implications of electing that coverage.<br/>
<a id="pl.197.12"></a><var>197.12</var>(d) If an eligible individual elects not to be covered by the general employees <br/>
<a id="pl.197.13"></a><var>197.13</var>retirement plan of the Public Employees Retirement Association, or if no election is made, <br/>
<a id="pl.197.14"></a><var>197.14</var>the prior coverage, if any, remains unchanged.<br/>
<a id="pl.197.15"></a><var>197.15</var><b>EFFECTIVE DATE.</b>This section is effective the first day of the first full payroll <br/>
<a id="pl.197.16"></a><var>197.16</var>period commencing after final enactment.<br/>
<br/>
<a id="bill.12.10.0"></a><a id="pl.197.17"></a><var>197.17</var>    Sec. 10. <b>PERA-GENERAL; PURCHASE OF CREDIT FOR OMITTED </b><br/>
<a id="pl.197.18"></a><var>197.18</var><b>CONTRIBUTION PERIOD.</b><br/>
<a id="pl.197.19"></a><var>197.19</var>(a) An eligible person described in paragraph (b) is entitled, upon written application <br/>
<a id="pl.197.20"></a><var>197.20</var>filed with the executive director of the Public Employees Retirement Association, to <br/>
<a id="pl.197.21"></a><var>197.21</var>purchase service credit for the period of omitted contributions specified in paragraph (c) <br/>
<a id="pl.197.22"></a><var>197.22</var>by paying the amount determined under paragraph (d). The employer of the eligible <br/>
<a id="pl.197.23"></a><var>197.23</var>person shall pay the amount determined under paragraph (e) within 30 days of being <br/>
<a id="pl.197.24"></a><var>197.24</var>notified by the Public Employees Retirement Association executive director that the <br/>
<a id="pl.197.25"></a><var>197.25</var>eligible person made the person's payment.<br/>
<a id="pl.197.26"></a><var>197.26</var>(b) An eligible person is a person who:<br/>
<a id="pl.197.27"></a><var>197.27</var>(1) was born on December 16, 1946;<br/>
<a id="pl.197.28"></a><var>197.28</var>(2) was first employed by the city of Elizabeth, Minnesota, municipal liquor store on <br/>
<a id="pl.197.29"></a><var>197.29</var>July 23, 2004;<br/>
<a id="pl.197.30"></a><var>197.30</var>(3) was first eligible for coverage by the general employees retirement plan of the <br/>
<a id="pl.197.31"></a><var>197.31</var>Public Employees Retirement Association in September 2004;<br/>
<a id="pl.197.32"></a><var>197.32</var>(4) was not reported as a general employees retirement plan member by the city of <br/>
<a id="pl.197.33"></a><var>197.33</var>Elizabeth, Minnesota, to the Public Employees Retirement Association until January <br/>
<a id="pl.197.34"></a><var>197.34</var>2005; and<br/>
<a id="pl.198.1"></a><var>198.1</var>(5) did not receive service credit under Minnesota Statutes, section 353.27, <br/>
<a id="pl.198.2"></a><var>198.2</var>subdivision 12, paragraph (e), in a timely fashion.<br/>
<a id="pl.198.3"></a><var>198.3</var>(c) The period of purchasable service credit is that portion of the period September <br/>
<a id="pl.198.4"></a><var>198.4</var>1, 2004, until January 1, 2005, during which the eligible person was an included employee <br/>
<a id="pl.198.5"></a><var>198.5</var>under Minnesota Statutes, section 353.01, subdivision 2a, and during which the required <br/>
<a id="pl.198.6"></a><var>198.6</var>deductions from the compensation of the eligible employee were not made under <br/>
<a id="pl.198.7"></a><var>198.7</var>Minnesota Statutes, section 353.27, subdivision 2.<br/>
<a id="pl.198.8"></a><var>198.8</var>(d) The member purchase amount is the amount of the omitted member contributions <br/>
<a id="pl.198.9"></a><var>198.9</var>during the period of purchasable service credit, plus compound annual interest at the rate <br/>
<a id="pl.198.10"></a><var>198.10</var>of 8.5 percent from October 15, 2004, to the date on which payment is made.<br/>
<a id="pl.198.11"></a><var>198.11</var>(e) The employer purchase amount is either the balance of the full actuarial value <br/>
<a id="pl.198.12"></a><var>198.12</var>purchase payment amount determined under Minnesota Statutes, section 356.551, <br/>
<a id="pl.198.13"></a><var>198.13</var>remaining after subtracting the amount under paragraph (d) or the amount of the employer <br/>
<a id="pl.198.14"></a><var>198.14</var>and employer additional contributions under Minnesota Statutes, section 353.27, <br/>
<a id="pl.198.15"></a><var>198.15</var>subdivisions 3 and 3a, plus compound annual interest at the rate of 8.5 percent from <br/>
<a id="pl.198.16"></a><var>198.16</var>October 15, 2004, to the date on which payment is made, whichever is larger. If the <br/>
<a id="pl.198.17"></a><var>198.17</var>employer fails to pay the employer purchase amount in a timely fashion, the executive <br/>
<a id="pl.198.18"></a><var>198.18</var>director of the Public Employees Retirement Association shall certify the unpaid <br/>
<a id="pl.198.19"></a><var>198.19</var>amount, plus monthly compound interest at the rate of 0.71 percent for the period, to the <br/>
<a id="pl.198.20"></a><var>198.20</var>commissioners of finance and revenue, who shall deduct the unpaid amount from any state <br/>
<a id="pl.198.21"></a><var>198.21</var>aid or state transfers that the employing unit is eligible to receive and shall transmit the <br/>
<a id="pl.198.22"></a><var>198.22</var>amount to the Public Employees Retirement Association.<br/>
<a id="pl.198.23"></a><var>198.23</var>(f) Purchase authority under this section expires on July 1, 2010.<br/>
<a id="pl.198.24"></a><var>198.24</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.12.11.0"></a><a id="pl.198.25"></a><var>198.25</var>    Sec. 11. <b>PERA-GENERAL AND TRA; ANNUITY APPLICATION </b><br/>
<a id="pl.198.26"></a><var>198.26</var><b>REVOCATION.</b><br/>
<a id="pl.198.27"></a><var>198.27</var>(a) An eligible person specified in paragraph (b) may elect to revoke retirement <br/>
<a id="pl.198.28"></a><var>198.28</var>annuity applications as provided in paragraph (c). The election must be made in writing <br/>
<a id="pl.198.29"></a><var>198.29</var>and must be filed with the executive director of the applicable retirement plan.<br/>
<a id="pl.198.30"></a><var>198.30</var>(b) An eligible person is a person who:<br/>
<a id="pl.198.31"></a><var>198.31</var>(1) was born in 1943;<br/>
<a id="pl.198.32"></a><var>198.32</var>(2) was employed as publications editor for St. Cloud State University for twenty <br/>
<a id="pl.198.33"></a><var>198.33</var>years, ending in 1998, and was covered by virtue of that employment by the general state <br/>
<a id="pl.198.34"></a><var>198.34</var>employees retirement plan of the Minnesota State Retirement System;<br/>
<a id="pl.199.1"></a><var>199.1</var>(3) retired from the general state employees retirement plan of the Minnesota State <br/>
<a id="pl.199.2"></a><var>199.2</var>Retirement System in 2007;<br/>
<a id="pl.199.3"></a><var>199.3</var>(4) was employed by the Underwood, Minnesota, municipal liquor store in early <br/>
<a id="pl.199.4"></a><var>199.4</var>2008, terminated that employment on April 18, 2008, applied for a retirement annuity from <br/>
<a id="pl.199.5"></a><var>199.5</var>the general employee retirement plan of the Public Employees Retirement Association <br/>
<a id="pl.199.6"></a><var>199.6</var>and from the Teachers Retirement Association under Minnesota Statutes, section 356.30, <br/>
<a id="pl.199.7"></a><var>199.7</var>in April or May 2008, and was subsequently reemployed by the municipal liquor store <br/>
<a id="pl.199.8"></a><var>199.8</var>on or about May 20, 2008; and<br/>
<a id="pl.199.9"></a><var>199.9</var>(5) was informed by the Public Employees Retirement Association of a retirement <br/>
<a id="pl.199.10"></a><var>199.10</var>annuity overpayment of $349.65 on July 22, 2008.<br/>
<a id="pl.199.11"></a><var>199.11</var>(c) If elected, the eligible person may revoke the person's application for a retirement <br/>
<a id="pl.199.12"></a><var>199.12</var>annuity from the general employee retirement plan of the Public Employees Retirement <br/>
<a id="pl.199.13"></a><var>199.13</var>Association, or revoke the person's application for a retirement annuity from the Teachers <br/>
<a id="pl.199.14"></a><var>199.14</var>Retirement Association, or revoke the person's application for a retirement annuity from <br/>
<a id="pl.199.15"></a><var>199.15</var>both retirement plans. If a retirement application is revoked, the person's retirement <br/>
<a id="pl.199.16"></a><var>199.16</var>annuity ends, the entitlement of the person to a future retirement annuity is restored, and <br/>
<a id="pl.199.17"></a><var>199.17</var>that future retirement annuity amount must be adjusted by subtracting the total value of <br/>
<a id="pl.199.18"></a><var>199.18</var>the retirement annuity amounts received from that retirement plan from the actuarial <br/>
<a id="pl.199.19"></a><var>199.19</var>present value of the eligible person's future annuity without adjustment, calculated based <br/>
<a id="pl.199.20"></a><var>199.20</var>on the mortality table for retired lives of the applicable retirement plan and 8.5 percent <br/>
<a id="pl.199.21"></a><var>199.21</var>interest rate assumption, and determining the adjusted annuity amount from the remaining <br/>
<a id="pl.199.22"></a><var>199.22</var>actuarial present value amount using the same interest and mortality assumption.<br/>
<a id="pl.199.23"></a><var>199.23</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.12.12.0"></a><a id="pl.199.24"></a><var>199.24</var>    Sec. 12. <b>MSRS-GENERAL AND PERA-GENERAL; PLAN MEMBERSHIP </b><br/>
<a id="pl.199.25"></a><var>199.25</var><b>EXCLUSION AND DEFERRED ANNUITY AUGMENTATION.</b><br/>
<a id="pl.199.26"></a><var>199.26</var>(a) A qualified person described in paragraph (b) may, upon written application <br/>
<a id="pl.199.27"></a><var>199.27</var>filed with the executive director of the Public Employees Retirement Association, elect <br/>
<a id="pl.199.28"></a><var>199.28</var>retroactive exclusion from coverage by the general employees retirement plan of the <br/>
<a id="pl.199.29"></a><var>199.29</var>Public Employees Retirement Association for any period of teacher assistant service for <br/>
<a id="pl.199.30"></a><var>199.30</var>Independent School District No. 623, Roseville, and qualification for deferred annuities <br/>
<a id="pl.199.31"></a><var>199.31</var>augmentation for the retroactively excluded period.<br/>
<a id="pl.199.32"></a><var>199.32</var>(b) A qualified person is a person who:<br/>
<a id="pl.199.33"></a><var>199.33</var>(1) was born on January 17, 1951;<br/>
<a id="pl.199.34"></a><var>199.34</var>(2) was employed by Ramsey County from January 20, 1975, to June 22, 1999;<br/>
<a id="pl.199.35"></a><var>199.35</var>(3) was employed by the state of Minnesota from June 22, 1999, to April 4, 2006; and<br/>
<a id="pl.200.1"></a><var>200.1</var>(4) was employed by Independent School District No. 623, Roseville, as a teacher <br/>
<a id="pl.200.2"></a><var>200.2</var>assistant following terminating state employment from December 13, 2007, to June 6, <br/>
<a id="pl.200.3"></a><var>200.3</var>2008.<br/>
<a id="pl.200.4"></a><var>200.4</var>(c) If the retroactive exclusion is elected, all member and employer contributions to <br/>
<a id="pl.200.5"></a><var>200.5</var>the general employees retirement plan of the Public Employees Retirement Association <br/>
<a id="pl.200.6"></a><var>200.6</var>made with respect to Independent School District No. 623, Roseville, teacher assistant <br/>
<a id="pl.200.7"></a><var>200.7</var>employment must be refunded with interest under Minnesota Statutes, section 353.27, <br/>
<a id="pl.200.8"></a><var>200.8</var>subdivision 7, and the qualified person is entitled, if otherwise eligible, for deferred <br/>
<a id="pl.200.9"></a><var>200.9</var>annuities augmentation from the general employees retirement plan of the Public <br/>
<a id="pl.200.10"></a><var>200.10</var>Employees Retirement Association and from the general state employees retirement plan <br/>
<a id="pl.200.11"></a><var>200.11</var>of the Minnesota State Retirement System for the period of retroactive exclusion.<br/>
<a id="pl.200.12"></a><var>200.12</var>(d) Authority to make the election under this section expires September 1, 2009.<br/>
<a id="pl.200.13"></a><var>200.13</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.12.13.0"></a><a id="pl.200.14"></a><var>200.14</var>    Sec. 13. <b>MSRS-GENERAL; EXCEPTION TO DISABILITY BENEFIT </b><br/>
<a id="pl.200.15"></a><var>200.15</var><b>APPLICATION DEADLINE.</b><br/>
<a id="pl.200.16"></a><var>200.16</var>(a) Notwithstanding any provision of Minnesota Statutes, section 352.113, <br/>
<a id="pl.200.17"></a><var>200.17</var>subdivision 4, paragraph (e), to the contrary, an eligible person described in paragraph <br/>
<a id="pl.200.18"></a><var>200.18</var>(b) is entitled to file a disability benefit application with the general state employees <br/>
<a id="pl.200.19"></a><var>200.19</var>retirement plan of the Minnesota State Retirement System and, if otherwise qualified under <br/>
<a id="pl.200.20"></a><var>200.20</var>Minnesota Statutes, section 352.113, receive a disability benefit from the retirement plan.<br/>
<a id="pl.200.21"></a><var>200.21</var>(b) An eligible person is a person who:<br/>
<a id="pl.200.22"></a><var>200.22</var>(1) was born on March 8, 1966;<br/>
<a id="pl.200.23"></a><var>200.23</var>(2) was an employee of the Minnesota Veterans Home at Silver Bay, Minnesota;<br/>
<a id="pl.200.24"></a><var>200.24</var>(3) terminated state employment on July 25, 2007;<br/>
<a id="pl.200.25"></a><var>200.25</var>(4) attempted to apply for a disability benefit in February 2008;<br/>
<a id="pl.200.26"></a><var>200.26</var>(5) had a request to apply for a disability benefit denied by the executive director of <br/>
<a id="pl.200.27"></a><var>200.27</var>the Minnesota State Retirement System on April 3, 2008;<br/>
<a id="pl.200.28"></a><var>200.28</var>(6) appealed the executive director's decision to the Minnesota State Retirement <br/>
<a id="pl.200.29"></a><var>200.29</var>System board of directors on April 24, 2008; and<br/>
<a id="pl.200.30"></a><var>200.30</var>(7) had the appeal to the Minnesota State Retirement System board of directors <br/>
<a id="pl.200.31"></a><var>200.31</var>denied on August 4, 2008.<br/>
<a id="pl.200.32"></a><var>200.32</var>(c) This section expires on June 1, 2010.<br/>
<a id="pl.200.33"></a><var>200.33</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.12.14.0"></a><a id="pl.201.1"></a><var>201.1</var>    Sec. 14. <b>MSRS-GENERAL; ALLOWABLE SERVICE CREDIT REVISION FOR </b><br/>
<a id="pl.201.2"></a><var>201.2</var><b>JOB-SHARE EMPLOYEES.</b><br/>
<a id="pl.201.3"></a><var>201.3</var>(a) An eligible person as described in paragraph (b) is entitled to have any partial <br/>
<a id="pl.201.4"></a><var>201.4</var>month allowable service credit in the general state employees retirement plan of the <br/>
<a id="pl.201.5"></a><var>201.5</var>Minnesota State Retirement System for part-time employment as a job-share employee <br/>
<a id="pl.201.6"></a><var>201.6</var>revised to be identical to allowable service credit for part-time state employment under <br/>
<a id="pl.201.7"></a><var>201.7</var>Minnesota Statutes, section 352.01, subdivision 11, that was not rendered as a job-share <br/>
<a id="pl.201.8"></a><var>201.8</var>employee.<br/>
<a id="pl.201.9"></a><var>201.9</var>(b) An eligible person:<br/>
<a id="pl.201.10"></a><var>201.10</var>(1) is an active member of the general state employees retirement plan or a retired <br/>
<a id="pl.201.11"></a><var>201.11</var>member of the general state employees retirement plan;<br/>
<a id="pl.201.12"></a><var>201.12</var>(2) was employed in the demonstration job-sharing project under Laws 1980, <br/>
<a id="pl.201.13"></a><var>201.13</var>chapter 572, or in the job-sharing program under Minnesota Statutes 1998, sections <br/>
<a id="pl.201.14"></a><var>201.14</var>43A.41 to 43A.46;<br/>
<a id="pl.201.15"></a><var>201.15</var>(3) was employed in the demonstration job-sharing project or in the job-sharing <br/>
<a id="pl.201.16"></a><var>201.16</var>program for one-half of full time; and<br/>
<a id="pl.201.17"></a><var>201.17</var>(4) received partial month allowable service credit under Minnesota Statutes, section <br/>
<a id="pl.201.18"></a><var>201.18</var>352.01, subdivision 11.<br/>
<a id="pl.201.19"></a><var>201.19</var>(c) To have allowable service credit revised under this section, an eligible person <br/>
<a id="pl.201.20"></a><var>201.20</var>shall provide the executive director of the Minnesota State Retirement System any <br/>
<a id="pl.201.21"></a><var>201.21</var>relevant documentation that the executive director requests.<br/>
<a id="pl.201.22"></a><var>201.22</var>(d) If the eligible person is a retired member of the general state employees <br/>
<a id="pl.201.23"></a><var>201.23</var>retirement plan, the person's retirement annuity must be recomputed based on the revised <br/>
<a id="pl.201.24"></a><var>201.24</var>service credit under this section and the recomputed retirement annuity is payable on the <br/>
<a id="pl.201.25"></a><var>201.25</var>first day of the month next following the effective date of this section.<br/>
<a id="pl.201.26"></a><var>201.26</var>(e) Nothing in this section may be interpreted to authorize the crediting of more than <br/>
<a id="pl.201.27"></a><var>201.27</var>one year of allowable service during any 12-month period or to authorize the payment of <br/>
<a id="pl.201.28"></a><var>201.28</var>any retroactive recomputed retirement annuity amounts.<br/>
<a id="pl.201.29"></a><var>201.29</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.12.15.0"></a><a id="pl.201.30"></a><var>201.30</var>    Sec. 15. <b>HENNEPIN COUNTY EMPLOYEE WAIVER OF SERVICE </b><br/>
<a id="pl.201.31"></a><var>201.31</var><b>REQUIREMENT TO APPLY FOR DISABILITY.</b><br/>
<a id="pl.201.32"></a><var>201.32</var>(a) Notwithstanding Minnesota Statutes, section 353.33, subdivision 1, an eligible <br/>
<a id="pl.201.33"></a><var>201.33</var>person specified in paragraph (b) is authorized to submit an application for disability <br/>
<a id="pl.201.34"></a><var>201.34</var>benefits from the general employees retirement plan of the Public Employees Retirement <br/>
<a id="pl.201.35"></a><var>201.35</var>Association.<br/>
<a id="pl.202.1"></a><var>202.1</var>(b) An eligible person is a person who:<br/>
<a id="pl.202.2"></a><var>202.2</var>(1) was born May 6, 1972;<br/>
<a id="pl.202.3"></a><var>202.3</var>(2) was employed by Independent School District No. 11, Anoka-Hennepin, from <br/>
<a id="pl.202.4"></a><var>202.4</var>September 11, 1995, to August 6, 1996;<br/>
<a id="pl.202.5"></a><var>202.5</var>(3) was employed by Hennepin County from July 31, 2000, to December 30, 2004;<br/>
<a id="pl.202.6"></a><var>202.6</var>(4) was again employed by Hennepin County starting April 2, 2007, with the most <br/>
<a id="pl.202.7"></a><var>202.7</var>recent employment position being a principal child support officer;<br/>
<a id="pl.202.8"></a><var>202.8</var>(5) has service credit with the Public Employees Retirement Association due to the <br/>
<a id="pl.202.9"></a><var>202.9</var>employment under clauses (2), (3), and (4); and<br/>
<a id="pl.202.10"></a><var>202.10</var>(6) has had several leaves from Hennepin County employment of a medical-related <br/>
<a id="pl.202.11"></a><var>202.11</var>nature.<br/>
<a id="pl.202.12"></a><var>202.12</var>(c) If an eligible person under paragraph (b) files a valid application, the executive <br/>
<a id="pl.202.13"></a><var>202.13</var>director of the Public Employees Retirement Association shall determine whether that <br/>
<a id="pl.202.14"></a><var>202.14</var>eligible person qualifies to receive a disability benefit under the laws and procedures <br/>
<a id="pl.202.15"></a><var>202.15</var>applicable to the general employees retirement plan of the Public Employees Retirement <br/>
<a id="pl.202.16"></a><var>202.16</var>Association.<br/>
<a id="pl.202.17"></a><var>202.17</var>(d) This section expires one year after the effective date of this section.<br/>
<a id="pl.202.18"></a><var>202.18</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.12.16.0"></a><a id="pl.202.19"></a><var>202.19</var>    Sec. 16. <b> REPEALER.</b><br/>
<a id="pl.202.20"></a><var>202.20</var>Minnesota Statutes 2008, section 352.86, subdivision 3, is repealed.<br/>
<br/>
<a id="bill.13.0.0"></a>

<a id="bill.13.1.0"></a><a id="pl.202.23"></a><var>202.23</var>    Section 1. Minnesota Statutes 2008, section 3.85, subdivision 3, is amended to read:<br/>
<a id="pl.202.24"></a><var>202.24</var>    Subd. 3. <b>Membership.</b> The commission consists of five seven members of the <br/>
<a id="pl.202.25"></a><var>202.25</var>senate appointed by the Subcommittee on Committees of the Committee on Rules and <br/>
<a id="pl.202.26"></a><var>202.26</var>Administration and five seven members of the house of representatives appointed by <br/>
<a id="pl.202.27"></a><var>202.27</var>the speaker. No more than five members from each chamber may be from the majority <br/>
<a id="pl.202.28"></a><var>202.28</var>caucus in that chamber. Members shall be appointed at the commencement of each regular <br/>
<a id="pl.202.29"></a><var>202.29</var>session of the legislature for a two-year term beginning January 16 of the first year of the <br/>
<a id="pl.202.30"></a><var>202.30</var>regular session. Members continue to serve until their successors are appointed. Vacancies <br/>
<a id="pl.202.31"></a><var>202.31</var>that occur while the legislature is in session shall be filled like regular appointments. If the <br/>
<a id="pl.202.32"></a><var>202.32</var>legislature is not in session, senate vacancies shall be filled by the last Subcommittee on <br/>
<a id="pl.202.33"></a><var>202.33</var>Committees of the senate Committee on Rules and Administration or other appointing <br/>
<a id="pl.203.1"></a><var>203.1</var>authority designated by the senate rules, and house of representatives vacancies shall be <br/>
<a id="pl.203.2"></a><var>203.2</var>filled by the last speaker of the house, or if the speaker is not available, by the last chair of <br/>
<a id="pl.203.3"></a><var>203.3</var>the house of representatives Rules Committee.<br/>
<br/>
<a id="bill.13.2.0"></a><a id="pl.203.4"></a><var>203.4</var>    Sec. 2. <b>COMMISSION STUDY; PENSION FUND CONSOLIDATION </b><br/>
<a id="pl.203.5"></a><var>203.5</var><b>ASSISTANCE FUND.</b><br/>
<a id="pl.203.6"></a><var>203.6</var>(a) The Legislative Commission on Pensions and Retirement shall study the policy <br/>
<a id="pl.203.7"></a><var>203.7</var>advantages and disadvantages of creating a state pension relief fund and, if deemed <br/>
<a id="pl.203.8"></a><var>203.8</var>sufficiently advantageous, shall recommend in the form of draft proposed legislation <br/>
<a id="pl.203.9"></a><var>203.9</var>the details of a state pension relief fund.<br/>
<a id="pl.203.10"></a><var>203.10</var>(b) The state pension relief fund is intended to be an account in the state treasury to <br/>
<a id="pl.203.11"></a><var>203.11</var>which ongoing appropriations would be made or a revenue source would be dedicated <br/>
<a id="pl.203.12"></a><var>203.12</var>and could provide financial support to offset some or all of the costs of smaller public <br/>
<a id="pl.203.13"></a><var>203.13</var>retirement plans to consolidate, subject to Minnesota Statutes, chapter 353A, as applicable, <br/>
<a id="pl.203.14"></a><var>203.14</var>into one of the three largest statewide public retirement plans.<br/>
<a id="pl.203.15"></a><var>203.15</var>(c) The commission shall consider provisions for relief funds established in other <br/>
<a id="pl.203.16"></a><var>203.16</var>states, the potential revenue sources for a state pension relief fund, the appropriate fund <br/>
<a id="pl.203.17"></a><var>203.17</var>administration, the appropriate investment vehicle or vehicles for the fund, the eligibility <br/>
<a id="pl.203.18"></a><var>203.18</var>criteria for determining when fund assets could be disbursed to assist in plan funding and <br/>
<a id="pl.203.19"></a><var>203.19</var>the amount of any fund disbursements, the appropriate level of ongoing funding that is <br/>
<a id="pl.203.20"></a><var>203.20</var>required with respect to a consolidating retirement plan, and the extent of state and local <br/>
<a id="pl.203.21"></a><var>203.21</var>responsibility for local retirement plan funding deficiencies.<br/>
<a id="pl.203.22"></a><var>203.22</var>(d) The commission shall file the results of this study on or before February 15, <br/>
<a id="pl.203.23"></a><var>203.23</var>2010, with the chair and the ranking minority member of the State and Local Government <br/>
<a id="pl.203.24"></a><var>203.24</var>Operations Reform, Technology, and Elections Committee of the house of representatives, <br/>
<a id="pl.203.25"></a><var>203.25</var>the chair and ranking minority member of the Finance Committee of the house of <br/>
<a id="pl.203.26"></a><var>203.26</var>representatives, the chair and ranking minority member of the State and Local Government <br/>
<a id="pl.203.27"></a><var>203.27</var>Operations and Oversight Committee of the senate, and the chair and ranking minority <br/>
<a id="pl.203.28"></a><var>203.28</var>member of the Finance Committee of the senate.<br/>
<a id="pl.203.29"></a><var>203.29</var>(e) Nothing in this section alters the provisions of Minnesota Statutes, chapter 353A.<br/>