1.1 	A bill for an act
1.2 	relating to retirement; Minneapolis Employees Retirement Fund; transfer of 
1.3 	administrative functions to the Public Employees Retirement Association; 
1.4 	creation of MERF consolidation account within the Public Employees Retirement 
1.5 	Association; making conforming changes;amending Minnesota Statutes 2008, 
1.6 	sections 11A.23, subdivision 4; 13D.01, subdivision 1; 43A.17, subdivision 
1.7 	9; 43A.316, subdivision 8; 69.021, subdivision 10; 126C.41, subdivision 3; 
1.8 	256D.21; 353.01, subdivision 2b, by adding subdivisions; 353.03, subdivision 1; 
1.9 	353.05; 353.27, as amended; 353.34, subdivisions 1, 6; 353.37, subdivisions 1, 2, 
1.10 	3, 4, 5; 353.46, subdivisions 2, 6; 353.64, subdivision 7; 353.71, subdivision 4; 
1.11 	353.86, subdivisions 1, 2; 353.87, subdivisions 1, 2; 353.88; 354.71; 354A.011, 
1.12 	subdivision 27; 354A.39; 355.095, subdivision 1; 356.214, subdivision 1; 
1.13 	356.215, subdivision 8; 356.30, subdivision 3; 356.302, subdivisions 1, 7; 
1.14 	356.303, subdivision 4; 356.407, subdivision 2; 356.431, subdivision 1; 356.465, 
1.15 	subdivision 3; 356.64; 356.65, subdivision 2; 356.91; 422A.101, subdivision 3; 
1.16 	422A.26; 473.511, subdivision 3; 473.606, subdivision 5; 475.52, subdivision 
1.17 	6; Minnesota Statutes 2009 Supplement, sections 6.67; 69.011, subdivision 
1.18 	1; 69.031, subdivision 5; 352.01, subdivision 2b; 353.01, subdivision 2a; 
1.19 	353.06; 356.20, subdivision 2; 356.215, subdivision 11; 356.32, subdivision 2; 
1.20 	356.401, subdivision 3; 356.415, subdivision 2; 356.96, subdivision 1; 480.181, 
1.21 	subdivision 2; proposing coding for new law in Minnesota Statutes, chapter 
1.22 	353; repealing Minnesota Statutes 2008, sections 13.63, subdivision 1; 69.011, 
1.23 	subdivision 2a; 356.43; 422A.01, subdivisions 1, 2, 3, 4, 4a, 5, 6, 7, 8, 9, 10, 11, 
1.24 	12, 13a, 17, 18; 422A.02; 422A.03; 422A.04; 422A.05, subdivisions 1, 2a, 2b, 
1.25 	2c, 2d, 2e, 2f, 5, 6, 8; 422A.06, subdivisions 1, 2, 3, 5, 6, 7; 422A.08, subdivision 
1.26 	1; 422A.09; 422A.10; 422A.101, subdivisions 1, 1a, 2, 2a; 422A.11; 422A.12; 
1.27 	422A.13; 422A.14, subdivision 1; 422A.15; 422A.151; 422A.155; 422A.156; 
1.28 	422A.16, subdivisions 1, 2, 3, 4, 5, 6, 7, 8, 9, 10; 422A.17; 422A.18, subdivisions 
1.29 	1, 2, 3, 4, 5, 7; 422A.19; 422A.20; 422A.21; 422A.22, subdivisions 1, 3, 4, 
1.30 	6; 422A.23, subdivisions 1, 2, 5, 6, 7, 8, 9, 10, 11, 12; 422A.231; 422A.24; 
1.31 	422A.25; Minnesota Statutes 2009 Supplement, sections 422A.06, subdivision 8; 
1.32 	422A.08, subdivision 5.
1.33 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

2.1 	ARTICLE 1
2.2 	ADMINISTRATIVE CONSOLIDATION OF THE MINNEAPOLIS 
2.3 	EMPLOYEES RETIREMENT FUND INTO THE PUBLIC EMPLOYEES 
2.4 	RETIREMENT ASSOCIATION

2.5 	Section 1. Minnesota Statutes 2009 Supplement, section 353.01, subdivision 2a, 
2.6 	is amended to read:
2.7 		Subd. 2a.Included employees. (a) Public employees whose salary from 
2.8 	employment in one or more positions within one governmental subdivision exceeds $425 
2.9 	in any month shall participate as members of the association. If the salary is less than 
2.10 	$425 in a subsequent month, the employee retains membership eligibility. Eligible public 
2.11 	employees shall participate as members of the association with retirement coverage by 
2.12 	the public general employees retirement plan or under this chapter, the public employees 
2.13 	police and fire retirement plan under this chapter, or the local government correctional 
2.14 	employees retirement plan under chapter 353E, whichever applies, as a condition of their 
2.15 	employment on the first day of employment unless they:
2.16 	(1) are specifically excluded under subdivision 2b;
2.17 	(2) do not exercise their option to elect retirement coverage in the association as 
2.18 	provided in subdivision 2d, paragraph (a); or
2.19 	(3) are employees of the governmental subdivisions listed in subdivision 2d, 
2.20 	paragraph (b), where the governmental subdivision has not elected to participate as a 
2.21 	governmental subdivision covered by the association.
2.22 	(b) A public employee who was a member of the association on June 30, 2002, 
2.23 	based on employment that qualified for membership coverage by the public employees 
2.24 	retirement plan or the public employees police and fire plan under this chapter, or the 
2.25 	local government correctional employees retirement plan under chapter 353E as of June 
2.26 	30, 2002, retains that membership for the duration of the person's employment in that 
2.27 	position or incumbency in elected office. Except as provided in subdivision 28, the person 
2.28 	shall participate as a member until the employee or elected official terminates public 
2.29 	employment under subdivision 11a or terminates membership under subdivision 11b.
2.30 	(c) Public employees under paragraph (a) include:
2.31 	(1) physicians under section 353D.01, subdivision 2, who do not elect public 
2.32 	employees defined contribution plan coverage under section 353D.02, subdivision 2;
2.33 	(2) full-time employees of the Dakota County Agricultural Society; and
2.34 	(3) employees of the Minneapolis Firefighters Relief Association or Minneapolis 
2.35 	Police Relief Association who are not excluded employees under subdivision 2b due to 
3.1 	coverage by the relief association pension plan and who elect Public Employee Retirement 
3.2 	Association general plan coverage under Laws 2009, chapter 169, article 12, section 10.
3.3 	(d) For the purpose of participation in the MERF division of the general employees 
3.4 	retirement plan, public employees include employees who were members of the former 
3.5 	Minneapolis Employees Retirement Fund on June 29, 2010, and who participate as 
3.6 	members of the MERF division of the association.

3.7 	Sec. 2. Minnesota Statutes 2008, section 353.01, subdivision 2b, is amended to read:
3.8 		Subd. 2b.Excluded employees. The following public employees are not eligible to 
3.9 	participate as members of the association with retirement coverage by the publicgeneral 
3.10 	employees retirement plan, the local government correctional employees retirement plan 
3.11 	under chapter 353E, or the public employees police and fire retirement plan:
3.12 	(1) public officers, other than county sheriffs, who are elected to a governing body, 
3.13 	or persons who are appointed to fill a vacancy in an elective office of a governing body, 
3.14 	whose term of office commences on or after July 1, 2002, for the service to be rendered 
3.15 	in that elective position;
3.16 	(2) election officers or election judges;
3.17 	(3) patient and inmate personnel who perform services for a governmental 
3.18 	subdivision;
3.19 	(4) except as otherwise specified in subdivision 12a, employees who are hired for 
3.20 	a temporary position as defined under subdivision 12a, and employees who resign from 
3.21 	a nontemporary position and accept a temporary position within 30 days in the same 
3.22 	governmental subdivision;
3.23 	(5) employees who are employed by reason of work emergency caused by fire, 
3.24 	flood, storm, or similar disaster;
3.25 	(6) employees who by virtue of their employment in one governmental subdivision 
3.26 	are required by law to be a member of and to contribute to any of the plans or funds 
3.27 	administered by the Minnesota State Retirement System, the Teachers Retirement 
3.28 	Association, the Duluth Teachers Retirement Fund Association, the St. Paul Teachers 
3.29 	Retirement Fund Association, the Minneapolis Employees Retirement Fund, or any police 
3.30 	or firefighters relief association governed by section 69.77 that has not consolidated 
3.31 	with the Public Employees Retirement Association, or any local police or firefighters 
3.32 	consolidation account who have not elected the type of benefit coverage provided by the 
3.33 	public employees police and fire fund under sections 353A.01 to 353A.10, or any persons 
3.34 	covered by section 353.665, subdivision 4, 5, or 6, who have not elected public employees 
3.35 	police and fire plan benefit coverage. This clause must not be construed to prevent a person 
4.1 	from being a member of and contributing to the Public Employees Retirement Association 
4.2 	and also belonging to and contributing to another public pension plan or fund for other 
4.3 	service occurring during the same period of time. A person who meets the definition of 
4.4 	"public employee" in subdivision 2 by virtue of other service occurring during the same 
4.5 	period of time becomes a member of the association unless contributions are made to 
4.6 	another public retirement fund on the salary based on the other service or to the Teachers 
4.7 	Retirement Association by a teacher as defined in section 354.05, subdivision 2;
4.8 	(7) persons who are members of a religious order and are excluded from coverage 
4.9 	under the federal Old Age, Survivors, Disability, and Health Insurance Program for the 
4.10 	performance of service as specified in United States Code, title 42, section 410(a)(8)(A), 
4.11 	as amended through January 1, 1987, if no irrevocable election of coverage has been made 
4.12 	under section 3121(r) of the Internal Revenue Code of 1954, as amended;
4.13 	(8) employees of a governmental subdivision who have not reached the age of 
4.14 	23 and are enrolled on a full-time basis to attend or are attending classes on a full-time 
4.15 	basis at an accredited school, college, or university in an undergraduate, graduate, or 
4.16 	professional-technical program, or a public or charter high school;
4.17 	(9) resident physicians, medical interns, and pharmacist residents and pharmacist 
4.18 	interns who are serving in a degree or residency program in public hospitals or clinics;
4.19 	(10) students who are serving in an internship or residency program sponsored 
4.20 	by an accredited educational institution;
4.21 	(11) persons who hold a part-time adult supplementary technical college license who 
4.22 	render part-time teaching service in a technical college;
4.23 	(12) except for employees of Hennepin County or Hennepin Healthcare System, 
4.24 	Inc., foreign citizens working for a governmental subdivision with a work permit of less 
4.25 	than three years, or an H-1b visa valid for less than three years of employment. Upon 
4.26 	notice to the association that the work permit or visa extends beyond the three-year period, 
4.27 	the foreign citizens must be reported for membership from the date of the extension;
4.28 	(13) public hospital employees who elected not to participate as members of the 
4.29 	association before 1972 and who did not elect to participate from July 1, 1988, to October 
4.30 	1, 1988;
4.31 	(14) except as provided in section 353.86, volunteer ambulance service personnel, 
4.32 	as defined in subdivision 35, but persons who serve as volunteer ambulance service 
4.33 	personnel may still qualify as public employees under subdivision 2 and may be members 
4.34 	of the Public Employees Retirement Association and participants in the public general
4.35 	employees retirement fund or the public employees police and fire fund, whichever 
5.1 	applies, on the basis of compensation received from public employment service other than 
5.2 	service as volunteer ambulance service personnel;
5.3 	(15) except as provided in section 353.87, volunteer firefighters, as defined in 
5.4 	subdivision 36, engaging in activities undertaken as part of volunteer firefighter duties; 
5.5 	provided that a person who is a volunteer firefighter may still qualify as a public 
5.6 	employee under subdivision 2 and may be a member of the Public Employees Retirement 
5.7 	Association and a participant in the public general employees retirement fund or the public 
5.8 	employees police and fire fund, whichever applies, on the basis of compensation received 
5.9 	from public employment activities other than those as a volunteer firefighter;
5.10 	(16) pipefitters and associated trades personnel employed by Independent School 
5.11 	District No. 625, St. Paul, with coverage under a collective bargaining agreement by the 
5.12 	pipefitters local 455 pension plan who were either first employed after May 1, 1997, or, 
5.13 	if first employed before May 2, 1997, elected to be excluded under Laws 1997, chapter 
5.14 	241, article 2, section 12;
5.15 	(17) electrical workers, plumbers, carpenters, and associated trades personnel 
5.16 	employed by Independent School District No. 625, St. Paul, or the city of St. Paul, 
5.17 	who have retirement coverage under a collective bargaining agreement by the Electrical 
5.18 	Workers Local 110 pension plan, the United Association Plumbers Local 34 pension plan, 
5.19 	or the Carpenters Local 87 pension plan who were either first employed after May 1, 
5.20 	2000, or, if first employed before May 2, 2000, elected to be excluded under Laws 2000, 
5.21 	chapter 461, article 7, section 5;
5.22 	(18) bricklayers, allied craftworkers, cement masons, glaziers, glassworkers, 
5.23 	painters, allied tradesworkers, and plasterers employed by the city of St. Paul or 
5.24 	Independent School District No. 625, St. Paul, with coverage under a collective 
5.25 	bargaining agreement by the Bricklayers and Allied Craftworkers Local 1 pension plan, 
5.26 	the Cement Masons Local 633 pension plan, the Glaziers and Glassworkers Local L-1324 
5.27 	pension plan, the Painters and Allied Trades Local 61 pension plan, or the Twin Cities 
5.28 	Plasterers Local 265 pension plan who were either first employed after May 1, 2001, or if 
5.29 	first employed before May 2, 2001, elected to be excluded under Laws 2001, First Special 
5.30 	Session chapter 10, article 10, section 6;
5.31 	(19) plumbers employed by the Metropolitan Airports Commission, with coverage 
5.32 	under a collective bargaining agreement by the Plumbers Local 34 pension plan, who either 
5.33 	were first employed after May 1, 2001, or if first employed before May 2, 2001, elected to 
5.34 	be excluded under Laws 2001, First Special Session chapter 10, article 10, section 6;
6.1 	(20) employees who are hired after June 30, 2002, to fill seasonal positions under 
6.2 	subdivision 12b which are limited in duration by the employer to 185 consecutive calendar 
6.3 	days or less in each year of employment with the governmental subdivision;
6.4 	(21) persons who are provided supported employment or work-study positions 
6.5 	by a governmental subdivision and who participate in an employment or industries 
6.6 	program maintained for the benefit of these persons where the governmental subdivision 
6.7 	limits the position's duration to three years or less, including persons participating in a 
6.8 	federal or state subsidized on-the-job training, work experience, senior citizen, youth, or 
6.9 	unemployment relief program where the training or work experience is not provided as a 
6.10 	part of, or for, future permanent public employment;
6.11 	(22) independent contractors and the employees of independent contractors; and
6.12 	(23) reemployed annuitants of the association during the course of that 
6.13 	reemployment.

6.14 	Sec. 3. Minnesota Statutes 2008, section 353.01, is amended by adding a subdivision 
6.15 	to read:
6.16 		Subd. 47.MERF division. "MERF division" means the separate retirement plan 
6.17 	within the general employees retirement plan of the Public Employees Retirement 
6.18 	Association containing the applicable provisions of Minnesota Statutes 2008, chapter 
6.19 	422A.

6.20 	Sec. 4. Minnesota Statutes 2008, section 353.01, is amended by adding a subdivision 
6.21 	to read:
6.22 		Subd. 48.MERF division account. "MERF division account" means the separate 
6.23 	account within the retirement fund of the general employees retirement fund of the 
6.24 	Public Employees Retirement Association in which the actuarial liabilities of the former 
6.25 	Minneapolis Employees Retirement Fund are held, and in which the assets of the former 
6.26 	Minneapolis Employees Retirement Fund are credited.

6.27 	Sec. 5. Minnesota Statutes 2008, section 353.05, is amended to read:
6.28 	353.05 CUSTODIAN OF FUNDS.
6.29 	The commissioner of management and budget shall be ex officio treasurer of the 
6.30 	retirement funds of the association, including the MERF division,  and the general bond of 
6.31 	the commissioner of management and budget to the state shall must be so conditioned 
6.32 	as to cover all liability for acts as treasurer of these funds. All moneysmoney of the 
6.33 	association received by the commissioner of management and budget shall must be set 
7.1 	aside in the state treasury to the credit of the proper fund or account. The commissioner 
7.2 	of management and budget shall transmit monthly to the executive director a detailed 
7.3 	statement of all amounts so received and credited to the fund funds, including the MERF 
7.4 	division. Payments out of the fund shallfunds, including the MERF division, may only 
7.5 	be made only on warrants issued by the commissioner of management and budget, upon 
7.6 	abstracts signed by the executive director; provided that abstracts for investment may be 
7.7 	signed by the secretaryexecutive director of the State Board of Investment.

7.8 	Sec. 6. Minnesota Statutes 2009 Supplement, section 353.06, is amended to read:
7.9 	353.06 STATE BOARD OF INVESTMENT TO INVEST FUNDS.
7.10 	The executive director shall from time to time certify to the State Board of 
7.11 	Investment for investment such portions of the retirement fundfunds of the association, 
7.12 	including the MERF division, as in itsthe director's judgment may not be required for 
7.13 	immediate use. The State Board of Investment shall thereupon invest and reinvest the sum 
7.14 	so certified, or transferred, in such securities as are duly authorized as legal investments 
7.15 	for state employees retirement fundunder section 11A.24 and shall havehas authority to 
7.16 	sell, convey, and exchange such securities and invest and reinvest the securities when it 
7.17 	deems it desirable to do so and shall sell securities upon request of the board of trustees
7.18 	executive director when such funds are needed for its purposes. All of the provisions 
7.19 	regarding accounting procedures and restrictions and conditions for the purchase and 
7.20 	sale of securities under chapter 11A must apply to the accounting, purchase and sale of 
7.21 	securities for the funds of the Public Employees Retirement fund Association, including 
7.22 	the MERF division. 

7.23 	Sec. 7. Minnesota Statutes 2008, section 353.27, as amended by Laws 2009, chapter 
7.24 	169, article 1, section 32, and article 4, sections 9, 10, 11, and 12, is amended to read:
7.25 	353.27 PUBLICGENERAL EMPLOYEES RETIREMENT FUND.
7.26 		Subdivision 1.Income; disbursements. There is a special fund known as the 
7.27 	"public general employees retirement fund," the "retirement fund," or the "fund," which 
7.28 	must include all the assets of the general employees retirement plan of the association. 
7.29 	This fund must be credited with all contributions, all interest and all other income of the 
7.30 	general employees retirement plan of the Public Employees Retirement Association that 
7.31 	are authorized by law. From this fund there is appropriated the payments authorized by 
7.32 	this chaptersections 353.01 to 353.46 in the amounts and at such time provided herein, 
7.33 	including the expenses of administering the general employees retirement plan and fund.
8.1 		Subd. 1a.MERF division account established; revenue and disbursements. The 
8.2 	MERF division account is established as a special account. The MERF division account 
8.3 	includes all of the assets of the former Minneapolis Employees Retirement Fund that 
8.4 	were transferred to the administration of the Public Employees Retirement Association 
8.5 	under section 353.50. The special account is credited with the contributions under 
8.6 	section 353.50, subdivision 7, state aid under sections 356.43 and 422A.101, subdivision 
8.7 	3, investment performance on the special account assets, and all other income of the 
8.8 	MERF division authorized by law. The payments of annuities and benefits authorized by 
8.9 	Minnesota Statutes 2008, chapter 422A, in the amounts and at the times provided in 
8.10 	that chapter, and the administrative expenses of the MERF division are appropriated 
8.11 	from the special account.
8.12 		Subd. 2.General employees retirement plan; employee contribution. (a) For 
8.13 	a basic member of the general employees retirement plan of the Public Employees 
8.14 	Retirement Association, the employee contribution is 9.10 percent of salary. For a 
8.15 	coordinated member of the general employees retirement plan of the Public Employees 
8.16 	Retirement Association, the employee contribution is six percent of salary plus any 
8.17 	contribution rate adjustment under subdivision 3b.
8.18 	(b) These contributions must be made by deduction from salary as defined in section 
8.19 	353.01, subdivision 10, in the manner provided in subdivision 4. If any portion of a 
8.20 	member's salary is paid from other than public funds, the member's employee contribution 
8.21 	must be based on the total salary received by the member from all sources.
8.22 		Subd. 3.General employees retirement plan; employer contribution. (a) For 
8.23 	a basic member of the general employees retirement plan of the Public Employees 
8.24 	Retirement Association, the employer contribution is 9.10 percent of salary. For a 
8.25 	coordinated member of the general employees retirement plan of the Public Employees 
8.26 	Retirement Association, the employer contribution is six percent of salary plus any 
8.27 	contribution rate adjustment under subdivision 3b.
8.28 	(b) This contribution must be made from funds available to the employing 
8.29 	subdivision by the means and in the manner provided in section 353.28.
8.30 		Subd. 3a.Additional employer contribution. (a) An additional employer 
8.31 	contribution to the general employees retirement fund of the Public Employees Retirement 
8.32 	Association must be made equal to the following applicable percentage of the total salary 
8.33 	amount for "basic members" and for "coordinated members":

8.34			Basic Program
		Coordinated Program
	
8.35	Effective before January 1, 2006
		2.68
		.43
	
8.36	Effective January 1, 2006
		2.68
		.50
	
9.1	Effective January 1, 2009
		2.68
		.75
	
9.2	Effective January 1, 2010
		2.68
		1.00
	
9.3 	These contributions must be made from funds available to the employing subdivision 
9.4 	by the means and in the manner provided in section 353.28.
9.5 	(b) The coordinated program contribution rates set forth in paragraph (a) effective 
9.6 	for January 1, 2009, or January 1, 2010, must not be implemented if, following receipt of 
9.7 	the July 1, 2008, or July 1, 2009, annual actuarial valuation reportsreport under section 
9.8 	356.215, respectively, the actuarially required contributions are equal to or less than the 
9.9 	total rates under this section in effect as of January 1, 2008.
9.10 	(c) This subdivision is repealed once the actuarial value of the assets of the general 
9.11 	employees retirement plan of the Public Employees Retirement Association equal or 
9.12 	exceed the actuarial accrued liability of the plan as determined by the actuary retained 
9.13 	under sections 356.214 and 356.215. The repeal is effective on the first day of the first full 
9.14 	pay period occurring after March 31 of the calendar year following the issuance of the 
9.15 	actuarial valuation upon which the repeal is based.
9.16 		Subd. 3b.Change in employee and employer contributions in certain instances.
 9.17 	(a) For purposes of this section, a contribution sufficiency exists if the total of the 
9.18 	employee contribution under subdivision 2, the employer contribution under subdivision 
9.19 	3, the additional employer contribution under subdivision 3a, and any additional 
9.20 	contribution previously imposed under this subdivision exceeds the total of the normal 
9.21 	cost, the administrative expenses, and the amortization contribution of the general 
9.22 	employees retirement plan as reported in the most recent actuarial valuation of the 
9.23 	retirement plan prepared by the actuary retained under section 356.214 and prepared under 
9.24 	section 356.215 and the standards for actuarial work of the Legislative Commission on 
9.25 	Pensions and Retirement. For purposes of this section, a contribution deficiency exists if 
9.26 	the total of the employee contributions under subdivision 2, the employer contributions 
9.27 	under subdivision 3, the additional employer contribution under subdivision 3a, and any 
9.28 	additional contribution previously imposed under this subdivision is less than the total 
9.29 	of the normal cost, the administrative expenses, and the amortization contribution of the 
9.30 	general employees retirement plan as reported in the most recent actuarial valuation of the 
9.31 	retirement plan prepared by the actuary retained under section 356.214 and prepared under 
9.32 	section 356.215 and the standards for actuarial work of the Legislative Commission on 
9.33 	Pensions and Retirement.
9.34 	(b) Employee and employer contributions to the general employees retirement plan 
9.35 	under subdivisions 2 and 3 must be adjusted:
10.1 	(1) if, after July 1, 2010, the regular actuarial valuations of the general employees 
10.2 	retirement plan of the Public Employees Retirement Association under section 356.215
10.3 	indicate that there is a contribution sufficiency under paragraph (a) equal to or greater 
10.4 	than 0.5 percent of covered payroll for two consecutive years, the coordinated program 
10.5 	employee and employer contribution rates must be decreased as determined under 
10.6 	paragraph (c) to a level such that the sufficiency equals no more than 0.25 percent of 
10.7 	covered payroll based on the most recent actuarial valuation; or
10.8 	(2) if, after July 1, 2010, the regular actuarial valuations of the general employees 
10.9 	retirement plan of the Public Employees Retirement Association under section 356.215
10.10 	indicate that there is a deficiency equal to or greater than 0.5 percent of covered payroll for 
10.11 	two consecutive years, the coordinated program employee and employer contribution rates 
10.12 	must be increased as determined under paragraph (c) to a level such that no deficiency 
10.13 	exists based on the most recent actuarial valuation.
10.14 	(c) The general employees retirement plan contribution rate increase or decrease 
10.15 	must be determined by the executive director of the Public Employees Retirement 
10.16 	Association, must be reported to the chair and the executive director of the Legislative 
10.17 	Commission on Pensions and Retirement on or before the next February 1, and, if the 
10.18 	Legislative Commission on Pensions and Retirement does not recommend against the rate 
10.19 	change or does not recommend a modification in the rate change, is effective on the 
10.20 	next July 1 following the determination by the executive director that a contribution 
10.21 	deficiency or sufficiency has existed for two consecutive fiscal years based on the most 
10.22 	recent actuarial valuations under section 356.215. If the actuarially required contribution 
10.23 	of the general employees retirement plan exceeds or is less than the total support provided 
10.24 	by the combined employee and employer contribution rates by more than 0.5 percent of 
10.25 	covered payroll, the general employees retirement plan coordinated program employee 
10.26 	and employer contribution rates must be adjusted incrementally over one or more years to 
10.27 	a level such that there remains a contribution sufficiency of no more than 0.25 percent 
10.28 	of covered payroll.
10.29 	(d) No incremental adjustment may exceed 0.25 percent for either the general 
10.30 	employees retirement plan coordinated program employee and employer contribution rates 
10.31 	per year in which any adjustment is implemented. A general employees retirement plan 
10.32 	contribution rate adjustment under this subdivision must not be made until at least two 
10.33 	years have passed since fully implementing a previous adjustment under this subdivision.
10.34 	(e) The general employees retirement plan contribution sufficiency or deficiency 
10.35 	determination under paragraphs (a) to (d) must be made without the inclusion of the 
11.1 	contributions to, the funded condition of, or the actuarial funding requirements of the 
11.2 	MERF division.
11.3 		Subd. 4.Employer reporting requirements; contributions; member status.
 11.4 	(a) A representative authorized by the head of each department shall deduct employee 
11.5 	contributions from the salary of each employee who qualifies for membership in the 
11.6 	general employees retirement plan of the Public Employees Retirement Association or in 
11.7 	the public employees police and fire retirement plan under this chapter and remit payment 
11.8 	in a manner prescribed by the executive director for the aggregate amount of the employee 
11.9 	contributions, the employer contributions and the additional employer contributions to be 
11.10 	received within 14 calendar days. The head of each department or the person's designee 
11.11 	shall for each pay period submit to the association a salary deduction report in the format 
11.12 	prescribed by the executive director. Data required to be submitted as part of salary 
11.13 	deduction reporting must include, but are not limited to:
11.14 	(1)  the legal names and Social Security numbers of employees who are members;
11.15 	(2) the amount of each employee's salary deduction;
11.16 	(3) the amount of salary from which each deduction was made;
11.17 	(4) the beginning and ending dates of the payroll period covered and the date of 
11.18 	actual payment; and
11.19 	(5) adjustments or corrections covering past pay periods.
11.20 	(b) Employers must furnish the data required for enrollment for each new employee 
11.21 	who qualifies for membership in the general employees retirement plan of the Public 
11.22 	Employees Retirement Association or in the public employees police and fire retirement 
11.23 	plan in the format prescribed by the executive director. The required enrollment data 
11.24 	on new employees must be submitted to the association prior to or concurrent with the 
11.25 	submission of the initial employee salary deduction. The employer shall also report 
11.26 	to the association all member employment status changes, such as leaves of absence, 
11.27 	terminations, and death, and shall report the effective dates of those changes, on an 
11.28 	ongoing basis for the payroll cycle in which they occur. The employer shall furnish data, 
11.29 	forms, and reports as may be required by the executive director for proper administration 
11.30 	of the retirement system. Before implementing new or different computerized reporting 
11.31 	requirements, the executive director shall give appropriate advance notice to governmental 
11.32 	subdivisions to allow time for system modifications.
11.33 	(c) Notwithstanding paragraph (a), the associationexecutive director may provide 
11.34 	for less frequent reporting and payments for small employers.
11.35 		Subd. 7.Adjustment for erroneous receipts or disbursements. (a) Except 
11.36 	as provided in paragraph (b), erroneous employee deductions and erroneous employer 
12.1 	contributions and additional employer contributions to the general employees retirement 
12.2 	plan of the Public Employees Retirement Association or to the public employees police 
12.3 	and fire retirement plan for a person, who otherwise does not qualify for membership 
12.4 	under this chapter, are considered:
12.5 	(1) valid if the initial erroneous deduction began before January 1, 1990. Upon 
12.6 	determination of the error by the association, the person may continue membership in the 
12.7 	association while employed in the same position for which erroneous deductions were 
12.8 	taken, or file a written election to terminate membership and apply for a refund upon 
12.9 	termination of public service or defer an annuity under section 353.34; or 
12.10 	(2) invalid, if the initial erroneous employee deduction began on or after January 1, 
12.11 	1990. Upon determination of the error, the association shall refund all erroneous employee 
12.12 	deductions and all erroneous employer contributions as specified in paragraph (e). No 
12.13 	person may claim a right to continued or past membership in the association based on 
12.14 	erroneous deductions which began on or after January 1, 1990. 
12.15 	(b) Erroneous deductions taken from the salary of a person who did not qualify for 
12.16 	membership in the general employees retirement plan of the Public Employees Retirement 
12.17 	Association or in the public employees police and fire retirement plan by virtue of 
12.18 	concurrent employment before July 1, 1978, which required contributions to another 
12.19 	retirement fund or relief association established for the benefit of officers and employees 
12.20 	of a governmental subdivision, are invalid. Upon discovery of the error, the association 
12.21 	shall remove all invalid service and, upon termination of public service, the association 
12.22 	shall refund all erroneous employee deductions to the person, with interest as determined 
12.23 	under section 353.34, subdivision 2, and all erroneous employer contributions without 
12.24 	interest to the employer. This paragraph has both retroactive and prospective application. 
12.25 	(c) Adjustments to correct employer contributions and employee deductions taken 
12.26 	in error from amounts which are not salary under section 353.01, subdivision 10, must 
12.27 	be made as specified in paragraph (e). The period of adjustment must be limited to the 
12.28 	fiscal year in which the error is discovered by the association and the immediate two 
12.29 	preceding fiscal years. 
12.30 	(d) If there is evidence of fraud or other misconduct on the part of the employee or 
12.31 	the employer, the board of trustees may authorize adjustments to the account of a member 
12.32 	or former member to correct erroneous employee deductions and employer contributions 
12.33 	on invalid salary and the recovery of any overpayments for a period longer than provided 
12.34 	for under paragraph (c).
12.35 	(e) Upon discovery of the receipt of erroneous employee deductions and employer 
12.36 	contributions under paragraph (a), clause (2), or paragraph (c), the association must require 
13.1 	the employer to discontinue the erroneous employee deductions and erroneous employer 
13.2 	contributions reported on behalf of a member. Upon discontinuation, the association must:
13.3 	(1) for a member, provide a refund or credit to the employer in the amount of the 
13.4 	invalid employee deductions with interest on the invalid employee deductions at the rate 
13.5 	specified under section 353.34, subdivision 2, from the received date of each invalid salary 
13.6 	transaction through the date the credit or refund is made; and the employer must pay the 
13.7 	refunded employee deductions plus interest to the member;
13.8 	(2) for a former member who:
13.9 	(i) is not receiving a retirement annuity or benefit, return the erroneous employee 
13.10 	deductions to the former member through a refund with interest at the rate specified under 
13.11 	section 353.34, subdivision 2, from the received date of each invalid salary transaction 
13.12 	through the date the credit or refund is made; or
13.13 	(ii) is receiving a retirement annuity or disability benefit, or a person who is 
13.14 	receiving an optional annuity or survivor benefit, for whom it has been determined an 
13.15 	overpayment must be recovered, adjust the payment amount and recover the overpayments 
13.16 	as provided under this section; and
13.17 	(3) return the invalid employer contributions reported on behalf of a member or 
13.18 	former member to the employer by providing a credit against future contributions payable 
13.19 	by the employer.
13.20 	(f) In the event that a salary warrant or check from which a deduction for the 
13.21 	retirement fund was taken has been canceled or the amount of the warrant or check 
13.22 	returned to the funds of the department making the payment, a refund of the sum 
13.23 	deducted, or any portion of it that is required to adjust the deductions, must be made 
13.24 	to the department or institution.
13.25 	(g) If the accrual date of any retirement annuity, survivor benefit, or disability benefit 
13.26 	is within the limitation period specified in paragraph (c), and an overpayment has resulted 
13.27 	by using invalid service or salary, or due to any erroneous calculation procedure, the 
13.28 	association must recalculate the annuity or benefit payable and recover any overpayment 
13.29 	as provided under subdivision 7b.
13.30 	(h) Notwithstanding the provisions of this subdivision, the association may apply 
13.31 	the Revenue Procedures defined in the federal Internal Revenue Service Employee Plans 
13.32 	Compliance Resolution System and not issue a refund of erroneous employee deductions 
13.33 	and employer contributions or not recover a small overpayment of benefits if the cost to 
13.34 	correct the error would exceed the amount of the member refund or overpayment.
14.1 	(i) Any fees or penalties assessed by the federal Internal Revenue Service for any 
14.2 	failure by an employer to follow the statutory requirements for reporting eligible members 
14.3 	and salary must be paid by the employer.
14.4 		Subd. 7a.Deductions or contributions transmitted by error. (a) If employee 
14.5 	deductions and employer contributions under this section, section 353.50, 353.65, or 
14.6 	353E.03 were erroneously transmitted to the association, but should have been transmitted 
14.7 	to another Minnesota public pension plan, the executive director shall transfer the 
14.8 	erroneous employee deductions and employer contributions to the appropriate retirement 
14.9 	fund or individual account, as applicable, without interest. The time limitations specified 
14.10 	in subdivisions 7 and 12 do not apply.
14.11 	(b) For purposes of this subdivision, a Minnesota public pension plan means a 
14.12 	plan specified in section 356.30, subdivision 3, or the plans governed by chapters 353D 
14.13 	and 354B. 
14.14 	(c) A potential transfer under paragraph (a) that is reasonably determined to cause 
14.15 	the plan to fail to be a qualified plan under section 401(a) of the federal Internal Revenue 
14.16 	Code, as amended, must not be made by the executive director of the association. Within 
14.17 	30 days after being notified by the Public Employees Retirement Association of an 
14.18 	unmade potential transfer under this paragraph, the employer of the affected person 
14.19 	must transmit an amount representing the applicable salary deductions and employer 
14.20 	contributions, without interest, to the retirement fund of the appropriate Minnesota public 
14.21 	pension plan, or to the applicable individual account if the proper coverage is by a defined 
14.22 	contribution plan. The association must provide the employing unit a credit for the amount 
14.23 	of the erroneous salary deductions and employer contributions against future contributions 
14.24 	from the employer. If the employing unit receives a credit under this paragraph, the 
14.25 	employing unit is responsible for refunding to the applicable employee any amount that 
14.26 	had been erroneously deducted from the person's salary.
14.27 		Subd. 7b.Recovery of overpayments. (a) In the event the executive director 
14.28 	determines that an overpaid annuity or benefit thatfrom the general employees retirement 
14.29 	plan of the Public Employees Retirement Association, the public employees police and 
14.30 	fire retirement plan, or the local government correctional employees retirement plan is 
14.31 	the result of invalid salary included in the average salary used to calculate the payment 
14.32 	amount must be recovered, the association must determine the amount of the employee 
14.33 	deductions taken in error on the invalid salary, with interest determined in the manner 
14.34 	provided for a former member under subdivision 7, paragraph (e), clause (2), item (i), 
14.35 	and must subtract that amount from the total annuity or benefit overpayment, and the 
14.36 	remaining balance of the overpaid annuity or benefit, if any, must be recovered.
15.1 	(b) If the invalid employee deductions plus interest exceed the amount of the 
15.2 	overpaid benefits, the balance must be refunded to the person to whom the benefit or 
15.3 	annuity is being paid.
15.4 	(c) Any invalid employer contributions reported on the invalid salary must be 
15.5 	credited to the employer as provided in subdivision 7, paragraph (e).
15.6 	(d) If a member or former member, who is receiving a retirement annuity or 
15.7 	disability benefit for which an overpayment is being recovered, dies before recovery of 
15.8 	the overpayment is completed and a joint and survivor optional annuity is payable, the 
15.9 	remaining balance of the overpaid annuity or benefit must continue to be recovered from 
15.10 	the payment to the optional annuity beneficiary.
15.11 	(e) If the association finds that a refund has been overpaid to a former member, 
15.12 	beneficiary or other person, the amount of the overpayment must be recovered for the 
15.13 	benefit of the respective retirement fund or account.
15.14 	(f) The board of trustees shall adopt policies directing the period of time and manner 
15.15 	for the collection of any overpaid retirement or optional annuity, and survivor or disability 
15.16 	benefit, or a refund that the executive director determines must be recovered as provided 
15.17 	under this section.
15.18 		Subd. 7c.Limitation on additional plan coverage. No deductions for any plan 
15.19 	under this chapter or chapter 353E may be taken from the salary of a person who is 
15.20 	employed by a governmental subdivision under section 353.01, subdivision 6, and who is 
15.21 	receiving disability benefit payments from any plan under this chapter or chapter 353E 
15.22 	unless the person waives the right to further disability benefit payments.
15.23 		Subd. 8.District court reporters; salary deductions. Deductions from the salary 
15.24 	of a district court reporter in a judicial district consisting of two or more counties shall
15.25 	must be made by the auditor of the county in which the bond and official oath of such 
15.26 	district court reporter are filed, from the portion of salary paid by such county.
15.27 		Subd. 9.Fee officers; contributions; obligations of employers. Any appointed or 
15.28 	elected officer of a governmental subdivision who was or is a "public employee" within 
15.29 	the meaning of section 353.01 and was or is a member of the fundgeneral employees 
15.30 	retirement plan of the Public Employees Retirement Association and whose salary 
15.31 	was or is paid in whole or in part from revenue derived by fees and assessments, shall 
15.32 	pay employee contribution in the amount, at the time, and in the manner provided in 
15.33 	subdivisions 2 and 4. This subdivision shalldoes not apply to district court reporters. 
15.34 	The employer contribution as provided in subdivision 3, and the additional employer 
15.35 	contribution as provided in subdivision 3a,  with respect to such service shallmust be 
15.36 	paid by the governmental subdivision. This subdivision shall havehas both retroactive 
16.1 	and prospective application as to all such members; and every employing governmental 
16.2 	subdivision is deemed liable, retroactively and prospectively, for all employer and 
16.3 	additional employer contributions for every such member of the general employees 
16.4 	retirement plan in its employ. Delinquencies under this section shall be are governed 
16.5 	in all respects by section 353.28. 
16.6 		Subd. 10.Employer exclusion reports. The head of a department shall annually 
16.7 	furnish the executive director with an exclusion report listing only those employees in 
16.8 	potentially PERA general employees retirement plan-eligible positions who were not 
16.9 	reported as members of the associationgeneral employees retirement plan and who worked 
16.10 	during the school year for school employees and calendar year for nonschool employees. 
16.11 	The department head must certify the accuracy and completeness of the exclusion report 
16.12 	to the association. The executive director shall prescribe the manner and forms, including 
16.13 	standardized exclusion codes, to be used by a governmental subdivision in preparing and 
16.14 	filing exclusion reports. The executive director shall also check the exclusion report to 
16.15 	ascertain whether any omissions have been made by a department head in the reporting 
16.16 	of new public employees for membership. The executive director may delegate an 
16.17 	association employee under section 353.03, subdivision 3a, paragraph (b), clause (5), to 
16.18 	conduct a field audit to review the payroll records of a governmental subdivision. 
16.19 		Subd. 11.Employers; required to furnish requested information. (a) All 
16.20 	governmental subdivisions shall furnish promptly such other information relative to the 
16.21 	employment status of all employees or former employees, including, but not limited to, 
16.22 	payroll abstracts pertaining to all past and present employees, as may be requested by the 
16.23 	executive director, including schedules of salaries applicable to various categories of 
16.24 	employment.
16.25 	(b) In the event payroll abstract records have been lost or destroyed, for whatever 
16.26 	reason or in whatever manner, so that such schedules of salaries cannot be furnished 
16.27 	therefrom, the employing governmental subdivision, in lieu thereof, shall furnish to the 
16.28 	association an estimate of the earnings of any employee or former employee for any 
16.29 	period as may be requested by the executive director. If the association is provided a 
16.30 	schedule of estimated earnings, the executive director is authorized to use the same as a 
16.31 	basis for making whatever computations might be necessary for determining obligations 
16.32 	of the employee and employer to the general employees retirement fund plan, the public 
16.33 	employees police and fire retirement plan, or the local government correctional employees 
16.34 	retirement plan. If estimates are not furnished by the employer at the request of the 
16.35 	executive director, the executive director may estimate the obligations of the employee 
16.36 	and employer to the general employees retirement fund, the public employees police and 
17.1 	fire retirement plan, or the local government correctional employees retirement plan based 
17.2 	upon those records that are in its possession.
17.3 		Subd. 12.Omitted salary deductions; obligations. (a) In the case of omission 
17.4 	of required deductions for the general employees retirement plan, the public employees 
17.5 	police and fire retirement plan, or the local government correctional employees retirement 
17.6 	plan from the salary of an employee, the department head or designee shall immediately, 
17.7 	upon discovery, report the employee for membership and deduct the employee deductions 
17.8 	under subdivision 4 during the current pay period or during the pay period immediately 
17.9 	following the discovery of the omission. Payment for the omitted obligations may only be 
17.10 	made in accordance with reporting procedures and methods established by the executive 
17.11 	director.
17.12 	(b) When the entire omission period of an employee does not exceed 60 days, the 
17.13 	governmental subdivision may report and submit payment of the omitted employee 
17.14 	deductions and the omitted employer contributions through the reporting processes under 
17.15 	subdivision 4.
17.16 	(c) When the omission period of an employee exceeds 60 days, the governmental 
17.17 	subdivision shall furnish to the association sufficient data and documentation upon which 
17.18 	the obligation for omitted employee and employer contributions can be calculated. 
17.19 	The omitted employee deductions must be deducted from the employee's subsequent 
17.20 	salary payment or payments and remitted to the association for deposit in the applicable 
17.21 	retirement fund. The employee shall pay omitted employee deductions due for the 60 
17.22 	days prior to the end of the last pay period in the omission period during which salary 
17.23 	was earned. The employer shall pay any remaining omitted employee deductions and any 
17.24 	omitted employer contributions, plus cumulative interest at an annual rate of 8.5 percent 
17.25 	compounded annually, from the date or dates each omitted employee contribution was 
17.26 	first payable.
17.27 	(d) An employer shall not hold an employee liable for omitted employee deductions 
17.28 	beyond the pay period dates under paragraph (c), nor attempt to recover from the employee 
17.29 	those employee deductions paid by the employer on behalf of the employee. Omitted 
17.30 	deductions due under paragraph (c) which are not paid by the employee constitute a 
17.31 	liability of the employer that failed to deduct the omitted deductions from the employee's 
17.32 	salary. The employer shall make payment with interest at an annual rate of 8.5 percent 
17.33 	compounded annually. Omitted employee deductions are no longer due if an employee 
17.34 	terminates public service before making payment of omitted employee deductions to 
17.35 	the association, but the employer remains liable to pay omitted employer contributions 
18.1 	plus interest at an annual rate of 8.5 percent compounded annually from the date the 
18.2 	contributions were first payable.
18.3 	(e) The association may not commence action for the recovery of omitted employee 
18.4 	deductions and employer contributions after the expiration of three calendar years after 
18.5 	the calendar year in which the contributions and deductions were omitted. Except as 
18.6 	provided under paragraph (b), no payment may be made or accepted unless the association 
18.7 	has already commenced action for recovery of omitted deductions. An action for recovery 
18.8 	commences on the date of the mailing of any written correspondence from the association 
18.9 	requesting information from the governmental subdivision upon which to determine 
18.10 	whether or not omitted deductions occurred.
18.11 		Subd. 12a.Terminated employees: omitted deductions. A terminated employee 
18.12 	who was a member of the general employees retirement plan of the Public Employees 
18.13 	Retirement Association, the public employees police and fire retirement plan, or the local 
18.14 	government correctional employees retirement plan and who has a period of employment 
18.15 	in which previously omitted employer contributions were made under subdivision 12 
18.16 	but for whom no, or only partial, omitted employee contributions have been made, or 
18.17 	a member who had prior coverage in the association for which previously omitted 
18.18 	employer contributions were made under subdivision 12 but who terminated service 
18.19 	before required omitted employee deductions could be withheld from salary, may pay the 
18.20 	omitted employee deductions for the period on which omitted employer contributions 
18.21 	were previously paid plus interest at an annual rate of 8.5 percent compounded annually. 
18.22 	A terminated employee may pay the omitted employee deductions plus interest within six 
18.23 	months of an initial notification from the association of eligibility to pay those omitted 
18.24 	deductions. If a terminated employee is reemployed in a position covered under a public 
18.25 	pension fund under section 356.30, subdivision 3, and elects to pay omitted employee 
18.26 	deductions, payment must be made no later than six months after a subsequent termination 
18.27 	of public service. 
18.28 		Subd. 12b.Terminated employees: immediate eligibility. If deductions were 
18.29 	omitted from salary adjustments or final salary of a terminated employee who was a 
18.30 	member of the general employees retirement plan, the public employees police and fire 
18.31 	retirement plan, or the local government correctional employees retirement plan and who 
18.32 	is immediately eligible to draw a monthly benefit, the employer shall pay the omitted 
18.33 	employer and employer additional contributions plus interest on both the employer and 
18.34 	employee amounts due at an annual rate of 8.5 percent compounded annually. The 
18.35 	employee shall pay the employee deductions within six months of an initial notification 
19.1 	from the association of eligibility to pay omitted deductions or the employee forfeits 
19.2 	the right to make the payment.
19.3 		Subd. 13.Certain warrants canceled. A warrant payable from the general 
19.4 	employees retirement fund, the public employees police and fire retirement fund, or the 
19.5 	local government correctional retirement fund remaining unpaid for a period of six 
19.6 	months must be canceled into the applicable retirement fund and not canceled into the 
19.7 	state's general fund.
19.8 		Subd. 14.Periods before initial coverage date. (a) If an entity is determined to 
19.9 	be a governmental subdivision due to receipt of a written notice of eligibility from the 
19.10 	association with respect to the general employees retirement plan, the public employees 
19.11 	police and fire retirement plan, or the local government correctional retirement plan, that 
19.12 	employer and its employees are subject to the requirements of subdivision 12, effective 
19.13 	retroactively to the date that the executive director of the association determines that 
19.14 	the entity first met the definition of a governmental subdivision, if that date predates 
19.15 	the notice of eligibility.
19.16 	(b) If the retroactive time period under paragraph (a) exceeds three years, an 
19.17 	employee is authorized to purchase service credit in the applicable Public Employees 
19.18 	Retirement Association plan for the portion of the period in excess of three years, by 
19.19 	making payment under section 356.551. Notwithstanding any provision of section 
19.20 	356.551, subdivision 2, to the contrary, regarding time limits on purchases, payment of a 
19.21 	service credit purchase amount may be made anytime before the termination of public 
19.22 	service.
19.23 	(c) This subdivision does not apply if the applicable employment under paragraph 
19.24 	(a) included coverage by any public or private defined benefit or defined contribution 
19.25 	retirement plan, other than a volunteer firefighters relief association. If this paragraph 
19.26 	applies, an individual is prohibited from purchasing service credit from a Public Employees 
19.27 	Retirement Association plan for any period or periods specified in paragraph (a).

19.28 	Sec. 8. Minnesota Statutes 2008, section 353.34, subdivision 1, is amended to read:
19.29 		Subdivision 1.Refund or deferred annuity. (a) A former member is entitled 
19.30 	to a refund of accumulated employee deductions under subdivision 2, or to a deferred 
19.31 	annuity under subdivision 3. Application for a refund may not be made before the date of 
19.32 	termination of public service. Except as specified in paragraph (b), a refund must be paid 
19.33 	within 120 days following receipt of the application unless the applicant has again become 
19.34 	a public employee required to be covered by the association.
20.1 	(b) If an individual was placed on layoff under section 353.01, subdivision 12 or 12c, 
20.2 	a refund is not payable before termination of service under section 353.01, subdivision  11a. 
20.3 	(c) An individual who terminates public service covered by the Public Employees 
20.4 	Retirement Association general employees retirement plan, the MERF division, the 
20.5 	Public Employees Retirement Association police and fire retirement plan, or the public 
20.6 	employees local government corrections service retirement plan, and who is employed 
20.7 	by a different employer and who becomes an active member covered by one of the other 
20.8 	two plans, may receive a refund of employee contributions plus six percent interest 
20.9 	compounded annually from the plan from which the member terminated service.

20.10 	Sec. 9. Minnesota Statutes 2008, section 353.34, subdivision 6, is amended to read:
20.11 		Subd. 6.Additions to fund. The board of trustees may credit to the general 
20.12 	employees retirement fund any moneysmoney received in the form of contributions, 
20.13 	donations, gifts, appropriations, bequests, or otherwise.

20.14 	Sec. 10. Minnesota Statutes 2008, section 353.37, subdivision 1, is amended to read:
20.15 		Subdivision 1.Salary maximums. (a) The annuity of a person otherwise eligible 
20.16 	for an annuity under this chapterfrom the general employees retirement plan of the Public 
20.17 	Employees Retirement Association, the public employees police and fire retirement plan, 
20.18 	or the local government correctional employees retirement plan must be suspended under 
20.19 	subdivision 2 or reduced under subdivision 3, whichever results in the higher annual 
20.20 	annuity amount, if the person reenters public service as a nonelective employee of a 
20.21 	governmental subdivision in a position covered by this chapter or returns to work as an 
20.22 	employee of a labor organization that represents public employees who are association 
20.23 	members under this chapter and salary for the reemployment service exceeds the annual 
20.24 	maximum earnings allowable for that age for the continued receipt of full benefit amounts 
20.25 	monthly under the federal Old Age, Survivors and Disability Insurance Program as set by 
20.26 	the secretary of health and human services under United States Code, title 42, section 403, 
20.27 	in any calendar year. If the person has not yet reached the minimum age for the receipt 
20.28 	of Social Security benefits, the maximum salary for the person is equal to the annual 
20.29 	maximum earnings allowable for the minimum age for the receipt of Social Security 
20.30 	benefits.
20.31 	(b) The provisions of paragraph (a) do not apply to the members of the MERF 
20.32 	division.

20.33 	Sec. 11. Minnesota Statutes 2008, section 353.37, subdivision 2, is amended to read:
21.1 		Subd. 2.Suspension of annuity. (a) The association shall suspend the annuity on 
21.2 	the first of the month after the month in which the salary of the reemployed annuitant 
21.3 	described in subdivision 1, paragraph (a), exceeds the maximums set in subdivision 1, 
21.4 	paragraph (a), based only on those months in which the annuitant is actually employed 
21.5 	in nonelective public service in a position covered under this chapter or employment 
21.6 	with a labor organization that represents public employees who are association members 
21.7 	of a retirement plan under this chapter or chapter 353E. 
21.8 	(b) An annuitant who is elected to public office after retirement may hold that office 
21.9 	and receive an annuity otherwise payable from a retirement plan administered by the 
21.10 	association.

21.11 	Sec. 12. Minnesota Statutes 2008, section 353.37, subdivision 3, is amended to read:
21.12 		Subd. 3.Reduction of annuity. (a) The association shall reduce the amount 
21.13 	of the annuity of a person who has not reached the retirement age by one-half of the 
21.14 	amount in excess of the applicable reemployment income maximum under subdivision 
21.15 	1, paragraph (a).
21.16 	(b) There is no reduction upon reemployment, regardless of income, for a person 
21.17 	who has reached the retirement age.

21.18 	Sec. 13. Minnesota Statutes 2008, section 353.37, subdivision 4, is amended to read:
21.19 		Subd. 4.Resumption of annuity. The association shall resume paying a full 
21.20 	annuity to the reemployed annuitant described in subdivision 1, paragraph (a), at the 
21.21 	start of each calendar year until the salary exceeds the maximums under subdivision 1, 
21.22 	paragraph (a), or on the first of the month following the termination of the employment 
21.23 	which resulted in the suspension of the annuity. The executive director may adopt policies 
21.24 	regarding the suspension and reduction of annuities under this section.

21.25 	Sec. 14. Minnesota Statutes 2008, section 353.37, subdivision 5, is amended to read:
21.26 		Subd. 5.Effect on annuity. Except as provided under this section, public service 
21.27 	performed by an annuitant described in subdivision 1, paragraph (a), subsequent to 
21.28 	retirement under this chapterfrom the general employees retirement plan, the public 
21.29 	employees police and fire retirement plan, or the local government correctional employees 
21.30 	retirement plan does not increase or decrease the amount of an annuity. The annuitant shall 
21.31 	not make any further contributions to the association'sa defined benefit plan administered 
21.32 	by the association by reason of this subsequent public service.

22.1 	Sec. 15. Minnesota Statutes 2008, section 353.46, subdivision 2, is amended to read:
22.2 		Subd. 2.Rights of deferred annuitant. The rightentitlement of a deferred 
22.3 	annuitant or other former member of the general employees retirement plan of the 
22.4 	Public Employees Retirement Association, the Minneapolis Employees Retirement Fund 
22.5 	division, the public employees police and fire retirement plan, or the local government 
22.6 	correctional employees retirement plan to receive an annuity under the law in effect at the 
22.7 	time suchthe person terminated public service is herein preserved; provided, however,.
22.8 	The provisions of section 353.71, subdivision 2, as amended by Laws 1973, chapter 753
22.9 	shall, apply to a deferred annuitant or other former member who first begins receiving an 
22.10 	annuity after July 1, 1973.  

22.11 	Sec. 16. Minnesota Statutes 2008, section 353.46, subdivision 6, is amended to read:
22.12 		Subd. 6.Computation of benefits for certain coordinated members. Any 
22.13 	coordinated member of the general employees retirement plan of the Public Employees 
22.14 	Retirement Association who prior to, before July 1, 1979, was a member of the former 
22.15 	coordinated program of the former Minneapolis Municipal Employees Retirement 
22.16 	Fund and who prior to, before July 1, 1978, was a member of the basic program of the 
22.17 	Minneapolis Municipal Employees Retirement Fund shall:
22.18 	(1) beis entitled to receive a retirement annuity when otherwise qualified, the 
22.19 	calculation of which shallmust utilize the formula accrual rates specified in section 
22.20 	422A.15, subdivision 1, for that portion of credited service which was rendered prior to
22.21 	before July 1, 1978, and the formula accrual rates specified in section 353.29, subdivision 
22.22 	3, for the remainder of credited service, both applied to the average salary as specified 
22.23 	in section 353.29, subdivision 2 353.01, subdivision 17a. The formula accrual rates to 
22.24 	be used in calculating the retirement annuity shallmust recognize the service after July 
22.25 	1, 1978, as a member of the former coordinated program of the former Minneapolis 
22.26 	Municipal Employees Retirement Fund and after July 1, 1979, as a member of the 
22.27 	general employees retirement plan of the Public Employees Retirement Association as 
22.28 	a continuation of service rendered prior tobefore July 1, 1978. The annuity amount 
22.29 	attributable to service as a member of the basic program of the former Minneapolis 
22.30 	Municipal Employees Retirement Fund shall beis payable byfrom the Minneapolis 
22.31 	Employees Retirement FundMERF division and the annuity amount attributable to all 
22.32 	other service shall beis payable byfrom the general employees retirement fund of the 
22.33 	Public Employees Retirement Association;  .
22.34 	(2) retain eligibility when otherwise qualified for a disability benefit from the 
22.35 	Minneapolis Employees Retirement Fund until July 1, 1982, notwithstanding coverage 
23.1 	by the Public Employees Retirement Association, if the member has or would, without 
23.2 	the transfer of retirement coverage from the basic program of the Minneapolis Municipal 
23.3 	Employees Retirement Fund to the coordinated program of the Minneapolis Municipal 
23.4 	Employees Retirement Fund or from the coordinated program of the Minneapolis 
23.5 	Municipal Employees Retirement Fund to the public employees retirement fund, have 
23.6 	sufficient credited service prior to January 1, 1983, to meet the minimum service 
23.7 	requirements for a disability benefit pursuant to section 422A.18. The disability benefit 
23.8 	amount attributable to service as a member of the basic program of the Minneapolis 
23.9 	Municipal Employees Retirement Fund shall be payable by the Minneapolis Employees 
23.10 	Retirement Fund and the disability benefit amount attributable to all other service shall be 
23.11 	payable by the Public Employees Retirement Association.  

23.12 	Sec. 17. [353.50] MERF CONSOLIDATION ACCOUNT; ESTABLISHMENT 
23.13 	AND OPERATION.
23.14 		Subdivision 1.Administrative consolidation. (a) Notwithstanding any provision 
23.15 	of this chapter or chapter 422A to the contrary, the administration of the Minneapolis 
23.16 	Employees Retirement Fund as the MERF division is transferred to the Public Employees 
23.17 	Retirement Association board of trustees. The assets, service credit, and benefit liabilities 
23.18 	of the Minneapolis Employees Retirement Fund transfer to the MERF division account 
23.19 	within the general employees retirement plan of the Public Employees Retirement 
23.20 	Association established by section 353.27, subdivision 1a, on July 1, 2010.
23.21 	(b) The creation of the MERF division must not be construed to alter the Social 
23.22 	Security or Medicare coverage of any member of the former Minneapolis Employees 
23.23 	Retirement Fund on June 29, 2010, while employed in a position covered under the MERF 
23.24 	division of the Public Employees Retirement Association.
23.25 		Subd. 2.Membership transfer. Effective June 30, 2010, the active, inactive, and 
23.26 	retired members of the Minneapolis Employees Retirement Fund are transferred to the 
23.27 	MERF division administered by the Public Employees Retirement Association and are no 
23.28 	longer members of the Minneapolis Employees Retirement Fund.
23.29 		Subd. 3.Service credit and benefit liability transfer. (a) All allowable service 
23.30 	credit and salary credit of the members of the  Minneapolis Employees Retirement Fund 
23.31 	as specified in the records of the Minneapolis Employees Retirement Fund through June 
23.32 	30, 2010, are transferred to the MERF division of the Public Employees Retirement 
23.33 	Association and are credited by the MERF division. Annuities or benefits of persons 
23.34 	who are active members of the former Minneapolis Employees Retirement Fund on 
23.35 	June 30, 2010, must be calculated under Minnesota Statutes 2008, sections 422A.11; 
24.1 	422A.12; 422A.13; 422A.14; 422A.15; 422A.151; 422A.155; 422A.156; 422A.16; 
24.2 	422A.17; 422A.18; 422A.19; 422A.20; and 422A.23, but are only eligible for automatic 
24.3 	postretirement adjustments after December 31, 2010, under section 356.415.
24.4 	(b) The liability for the payment of annuities and benefits of the Minneapolis 
24.5 	Employees Retirement Fund retirees and benefit recipients as specified in the records 
24.6 	of the Minneapolis Employees Retirement Fund on June 29, 2010, is transferred to the 
24.7 	MERF division of the Public Employees Retirement Association on June 30, 2010.
24.8 		Subd. 4.Records transfer. On June 30, 2010, the executive director of the 
24.9 	Minneapolis Employees Retirement Fund shall transfer all records and documents relating 
24.10 	to the Minneapolis Employees Retirement Fund and its benefit plan to the executive 
24.11 	director of the Public Employees Retirement Association. To the extent possible, original 
24.12 	copies of all records and documents must be transferred.
24.13 		Subd. 5.Transfer of title to assets. On June 30, 2010, legal title to the assets of 
24.14 	the Minneapolis Employees Retirement Fund transfers to the State Board of Investment 
24.15 	and the assets must be invested under section 11A.14, as assets of the MERF division of 
24.16 	the Public Employees Retirement Association.  The MERF division is the successor in 
24.17 	interest to all claims that the former Minneapolis Employees Retirement Fund may have 
24.18 	or may assert against any person and is the successor in interest to all claims which could 
24.19 	have been asserted against the former Minneapolis Employees Retirement Fund, but the 
24.20 	MERF division is not liable for any claim against the former Minneapolis Employees 
24.21 	Retirement Fund, its former governing board, or its former administrative staff acting in a 
24.22 	fiduciary capacity under chapter 356A or under common law, which is founded upon a 
24.23 	claim of breach of fiduciary duty, but where the act or acts constituting the claimed breach 
24.24 	were not undertaken in good faith, the Public Employees Retirement Association may 
24.25 	assert any applicable defense to any claim in any judicial or administrative proceeding 
24.26 	that the former Minneapolis Employees Retirement Fund, its former board, or its 
24.27 	former administrative staff would otherwise have been entitled to assert, and the Public 
24.28 	Employees Retirement Association may assert any applicable defense that it has in its 
24.29 	capacity as a statewide agency.
24.30 		Subd. 6.Benefits. (a) The annuities and benefits of, or attributable to, retired, 
24.31 	disabled, deferred, or inactive Minneapolis Employees Retirement Fund members 
24.32 	with that status as of June 30, 2010, with the exception of post-December 31, 2010, 
24.33 	postretirement adjustments, which are governed by paragraph (b), as calculated under 
24.34 	Minnesota Statutes 2008, sections 422A.11; 422A.12; 422A.13; 422A.14; 422A.15; 
24.35 	422A.151; 422A.155; 422A.156; 422A.16; 422A.17; 422A.18; 422A.19; 422A.20; and 
24.36 	422A.23, continue in force after the administrative consolidation under this article.
25.1 	(b) After December 31, 2010, annuities and benefits from the MERF division are 
25.2 	eligible for annual automatic postretirement adjustments solely under section 356.415.
25.3 		Subd. 7.MERF division account contributions. (a) After June 30, 2010, the 
25.4 	member and employer contributions to the MERF division account are governed by this 
25.5 	subdivision.
25.6 	(b) An active member covered by the MERF division must make an employee 
25.7 	contribution of 9.75 percent of the total salary of the member as defined in section 353.01, 
25.8 	subdivision 10. The employee contribution must be made by payroll deduction by the 
25.9 	member's employing unit under section 353.27, subdivision 4, and is subject to the 
25.10 	provisions of section 353.27, subdivisions 7, 7a, 7b, 12, 12a, and 12b.
25.11 	(c) The employer regular contribution to the MERF division account with respect 
25.12 	to an active MERF division member is 9.75 percent of the total salary of the member as 
25.13 	defined in section 353.01, subdivision 10.
25.14 	(d) The employer additional contribution to the MERF division account with respect 
25.15 	to an active member of the MERF division is 2.68 percent of the total salary of the member 
25.16 	as defined in section 353.01, subdivision 10, plus the employing unit's share of $3,900,000 
25.17 	that the employing unit paid or is payable to the former Minneapolis Employees 
25.18 	Retirement Fund under Minnesota Statutes 2008, section 422A.101, subdivision 1a, 2, 
25.19 	or 2a, during calendar year 2009, as was certified by the former executive director of the 
25.20 	former Minneapolis Employees Retirement Fund.
25.21 	(e) Annually after June 30, 2012, the employer supplemental contribution to 
25.22 	the MERF division account by the city of Minneapolis, Special School District No. 1, 
25.23 	Minneapolis, a Minneapolis-owned public utility, improvement, or municipal activity, 
25.24 	Hennepin county, the Metropolitan Council, the Metropolitan Airports Commission, and 
25.25 	the Minnesota State Colleges and Universities system is the larger of the following:
25.26 	(1) the amount by which the total actuarial required contribution determined under 
25.27 	section 356.215 by the approved actuary retained by the Public Employees Retirement 
25.28 	Association in the most recent actuarial valuation of the MERF division and based on a 
25.29 	June 30, 2031, amortization date, after subtracting the contributions under paragraphs 
25.30 	(b), (c), and (d), exceeds $24,000,000; or
25.31 	(2) the amount of $27,000,000, but the total supplemental contribution amount 
25.32 	plus the contributions under paragraphs (c) and (d) may not exceed $34,000,000. Each 
25.33 	employing unit's share of the total employer supplemental contribution amount is equal 
25.34 	to the applicable portion specified in paragraph (g). The initial total actuarial required 
25.35 	contribution after June 30, 2012, must be calculated using the mortality assumption 
25.36 	change recommended on September 30, 2009, for the Minneapolis Employees Retirement 
26.1 	Fund by the approved consulting actuary retained by the Minneapolis Employees 
26.2 	Retirement Fund board.
26.3 	(f) Notwithstanding any provision of paragraph (c), (d), or (e) to the contrary, as of 
26.4 	August 1 annually, if the amount of the retirement annuities and benefits paid from the 
26.5 	MERF division account during the preceding fiscal year, multiplied by the factor of 1.035, 
26.6 	exceeds the market value of the assets of the MERF division account on the preceding 
26.7 	June 30, plus state aid of $9,000,000 or $24,000,000, whichever applies, plus the amounts 
26.8 	payable under paragraphs (b), (c), (d), and (e) during the preceding fiscal year, multiplied 
26.9 	by the factor of 1.035, the balance calculated is a special additional employer contribution. 
26.10 	The special additional employer contribution under this paragraph is payable in addition 
26.11 	to any employer contribution required under paragraphs (c), (d), and (e), and is payable 
26.12 	on or before the following June 30. The special additional employer contribution under 
26.13 	this paragraph must be allocated between the city of Minneapolis, Special School District 
26.14 	No. 1, Minneapolis, any Minneapolis-owned public utility, improvement, or municipal 
26.15 	activity, the Minnesota State Colleges and Universities system, Hennepin County, the 
26.16 	Metropolitan Council, and the Metropolitan Airports Commission in proportion to their 
26.17 	share of the actuarial accrued liability of the former Minneapolis Employees Retirement 
26.18 	Fund as of July 1, 2009, as calculated by the approved actuary retained under section 
26.19 	356.214 as part of the actuarial valuation prepared as of July 1, 2009, under section 
26.20 	356.215 and the Standards for Actuarial Work adopted by the Legislative Commission on 
26.21 	Pensions and Retirement.
26.22 	(g) The employer supplemental contribution under paragraph (e) or the special 
26.23 	additional employer contribution under paragraph (f) must be allocated between the city 
26.24 	of Minneapolis, Special School District No. 1, Minneapolis, any Minneapolis-owned 
26.25 	public utility, improvement, or municipal activity, the Minnesota State Colleges and 
26.26 	Universities system, Hennepin County, the Metropolitan Council, and the Metropolitan 
26.27 	Airports Commission in proportion to their share of the actuarial accrued liability of the 
26.28 	former Minneapolis Employees Retirement Fund as of July 1, 2009, as calculated by the 
26.29 	approved actuary retained under section 356.214 as part of the actuarial valuation prepared 
26.30 	as of July 1, 2009, under section 356.215 and the Standards for Actuarial Work adopted by 
26.31 	the Legislative Commission on Pensions and Retirement.
26.32 	(h) The employer contributions under paragraphs (c), (d), and (e) must be paid as 
26.33 	provided in section 353.28.
26.34 	(i) Contributions under this subdivision are subject to the provisions of section 
26.35 	353.27, subdivisions 4, 7, 7a, 7b, 11, 12, 12a, 12b, 13, and 14.
27.1 		Subd. 7a.Minneapolis Municipal Retirement Association dues. If authorized 
27.2 	by an annuitant or retirement benefit recipient in writing on a form prescribed by the 
27.3 	executive director of the Public Employees Retirement Association, the executive director 
27.4 	shall deduct the dues for the Minneapolis Municipal Retirement Association from the 
27.5 	person's annuity or retirement benefit. This dues deduction authority expires upon the 
27.6 	eventual full consolidation of the MERF account under subdivision 8.
27.7 		Subd. 8.Eventual full consolidation. (a) Once the fiscal year end market value 
27.8 	of assets of the MERF division account equals or exceeds 80 percent of the actuarial 
27.9 	accrued liability of the MERF division as calculated by the approved actuary retained by 
27.10 	the Public Employees Retirement Association under section 356.215 and the Standards 
27.11 	for Actuarial Work adopted by the Legislative Commission on Pensions and Retirement, 
27.12 	the MERF division must be merged with the general employees retirement plan of the 
27.13 	Public Employees Retirement Association and the MERF division account ceases as a 
27.14 	separate account within the general employees retirement fund of the Public Employees 
27.15 	Retirement Association.
27.16 	(b) If the market value of the MERF division account is less than 100 percent of the 
27.17 	actuarial accrued liability of the MERF division under paragraph (a), the total employer 
27.18 	contribution of employing units referenced in subdivision 7, paragraph (e), for the period 
27.19 	after the full consolidation and June 30, 2031, to amortize on a level annual dollar payment 
27.20 	the remaining unfunded actuarial accrued liability of the former MERF division account 
27.21 	on the full consolidation date by June 30, 2031, shall be calculated by the consulting 
27.22 	actuary retained under section 356.214 using the applicable postretirement interest rate 
27.23 	actuarial assumption for the general employees retirement plan under section 356.215. 
27.24 	The actuarial accrued liability of the MERF division must be calculated using the healthy 
27.25 	retired life mortality assumption applicable to the general employees retirement plan.
27.26 	(c) The merger shall occur as of the first day of the first month after the date on 
27.27 	which the triggering actuarial valuation report is filed with the executive director of the 
27.28 	Legislative Commission on Pensions and Retirement.
27.29 	(d) The executive director of the Public Employees Retirement Association shall 
27.30 	prepare proposed legislation fully implementing the merger and updating the applicable 
27.31 	provisions of chapters 353 and 356 and transmit the proposed legislation to the executive 
27.32 	director of the Legislative Commission on Pensions and Retirement by the following 
27.33 	February 15.
27.34 		Subd. 9.Merger of former MERF membership groups into PERA-general.
 27.35 	If provided for in an agreement between the board of trustees of the Public Employees 
27.36 	Retirement Association and the governing board of an employing unit formerly with 
28.1 	retirement coverage provided for its employees by the former Minneapolis Employees 
28.2 	Retirement Fund, an employing unit may transfer sufficient assets to the general 
28.3 	employees retirement fund to cover the anticipated actuarial accrued liability for its 
28.4 	current or former employees that is in excess of MERF division account assets attributable 
28.5 	to those employees, have those employees be considered full members of the general 
28.6 	employees retirement plan, and be relieved of any further contribution obligation to the 
28.7 	general employees retirement plan for those employees under this section. Any agreement 
28.8 	under this subdivision and any actuarial valuation report related to a merger under this 
28.9 	subdivision must be submitted to the executive director of the Legislative Commission on 
28.10 	Pensions and Retirement for comment prior to the final execution.

28.11 	Sec. 18. Minnesota Statutes 2008, section 353.64, subdivision 7, is amended to read:
28.12 		Subd. 7.Pension coverage for certain public safety employees of the
28.13 	Metropolitan Airports Commission. Any person first employed as either a full-time 
28.14 	firefighter or a full-time police officer by the Metropolitan Airports Commission after June 
28.15 	30, 1978, who is not eligible for coverage under the agreement signed between the state 
28.16 	and the secretary of the federal Department of Health and Human Services making the 
28.17 	provisions of the federal Old Age, Survivors, and Disability Insurance Act applicable to 
28.18 	municipal employees because that position is excluded from application pursuant tounder 
28.19 	Title 42, United States Code, Sections 418 (d) (5) (A) and 418 (d) (8) (D) and section 
28.20 	355.07, shall not be a member of the Minneapolis Employees Retirement Fund but shall 
28.21 	beis a member of the public employees police and fire fund and shall beis deemed to be a 
28.22 	firefighter or a police officer within the meaning of this section. The Metropolitan Airports 
28.23 	Commission shall make the employer contribution required pursuant tounder section 
28.24 	353.65, subdivision 3, with respect to each of its firefighters or police officers covered 
28.25 	by the public employees police and fire fund and shall meet the employers recording and 
28.26 	reporting requirements set forth in section 353.65, subdivision 4. 

28.27 	Sec. 19. Minnesota Statutes 2008, section 356.215, subdivision 8, is amended to read:
28.28 		Subd. 8.Interest and salary assumptions. (a) The actuarial valuation must use 
28.29 	the applicable following preretirement interest assumption and the applicable following 
28.30 	postretirement interest assumption:

28.31
28.32
28.33	plan
	preretirement interest 
rate assumption
	postretirement 
interest rate 
assumption
	
28.34	general state employees retirement plan
		8.5%
	6.0%
	
28.35	correctional state employees retirement plan
		8.5
	6.0
	
29.1	State Patrol retirement plan
		8.5
	6.0
	
29.2	legislators retirement plan
		8.5
	6.0
	
29.3	elective state officers retirement plan
		8.5
	6.0
	
29.4	judges retirement plan
		8.5
	6.0
	
29.5	general public employees retirement plan
		8.5
	6.0
	
29.6	public employees police and fire retirement plan
		8.5
	6.0
	
29.7
29.8	local government correctional service retirement 
plan
		8.5
	6.0
	
29.9	teachers retirement plan
		8.5
	6.0
	
29.10	Minneapolis employees retirement plan
		6.0
	5.0
	
29.11	Duluth teachers retirement plan
		8.5
	8.5
	
29.12	St. Paul teachers retirement plan
		8.5
	8.5
	
29.13	Minneapolis Police Relief Association
		6.0
	6.0
	
29.14	Fairmont Police Relief Association
		5.0
	5.0
	
29.15	Minneapolis Fire Department Relief Association
		6.0
	6.0
	
29.16	Virginia Fire Department Relief Association
		5.0
	5.0
	
29.17	Bloomington Fire Department Relief Association
		6.0
	6.0
	
29.18
29.19	local monthly benefit volunteer firefighters relief 
associations
		5.0
	5.0
	
29.20 	(b) Before July 1, 2010, the actuarial valuation must use the applicable following 
29.21 	single rate future salary increase assumption, the applicable following modified single 
29.22 	rate future salary increase assumption, or the applicable following graded rate future 
29.23 	salary increase assumption:
29.24 	(1) single rate future salary increase assumption

29.25	plan
	future salary increase assumption
	
29.26	legislators retirement plan
		5.0%
	
29.27	judges retirement plan
		4.0 
	
29.28	Minneapolis Police Relief Association
		4.0
	
29.29	Fairmont Police Relief Association
		3.5
	
29.30
29.31	Minneapolis Fire Department Relief 
Association
		4.0
	
29.32	Virginia Fire Department Relief Association
		3.5
	
29.33
29.34	Bloomington Fire Department Relief 
Association
		4.0
	
29.35 	(2) modified single rate future salary increase assumption

29.36	plan
		future salaryincrease assumption
	
29.37
29.38
29.39
29.40	Minneapolis employees 
retirement plan
		the prior calendar year amount increased 
first by 1.0198 percent to prior fiscal year 
date and then increased by 4.0 percent 
annually for each future year
	
29.41 	(3)(2) select and ultimate future salary increase assumption or graded rate future 
29.42 	salary increase assumption

30.1	plan
	future salary increase assumption
	
30.2
30.3	general state employees retirement plan
	select calculation and 
assumption A
	
30.4	correctional state employees retirement plan
	assumption H
	
30.5	State Patrol retirement plan
	assumption G
	
30.6
30.7	general public employees retirement plan
	select calculation and 
assumption B
	
30.8	public employees police and fire fund retirement plan
	assumption C
	
30.9	local government correctional service retirement plan
	assumption G
	
30.10	teachers retirement plan
	assumption D
	
30.11	Duluth teachers retirement plan
	assumption E
	
30.12	St. Paul teachers retirement plan
	assumption F
	
30.13 	The select calculation is: during the 
30.14 	designated select period, a designated 
30.15 	percentage rate is multiplied by the result of 
30.16 	the designated integer minus T, where T is the 
30.17 	number of completed years of service, and is 
30.18 	added to the applicable future salary increase 
30.19 	assumption. The designated select period is 
30.20 	five years and the designated integer is five 
30.21 	for the general state employees retirement 
30.22 	plan and the general public employees 
30.23 	retirement plan. The designated select period 
30.24 	is ten years and the designated integer is ten 
30.25 	for all other retirement plans covered by 
30.26 	this clause. The designated percentage rate 
30.27 	is: (1) 0.2 percent for the correctional state 
30.28 	employees retirement plan, the State Patrol 
30.29 	retirement plan, the public employees police 
30.30 	and fire plan, and the local government 
30.31 	correctional service plan; (2) 0.6 percent 
30.32 	for the general state employees retirement 
30.33 	plan and the general public employees 
30.34 	retirement plan; and (3) 0.3 percent for the 
30.35 	teachers retirement plan, the Duluth Teachers 
30.36 	Retirement Fund Association, and the St. 
30.37 	Paul Teachers Retirement Fund Association. 
30.38 	The select calculation for the Duluth Teachers 
31.1 	Retirement Fund Association is 8.00 percent 
31.2 	per year for service years one through seven, 
31.3 	7.25 percent per year for service years seven 
31.4 	and eight, and 6.50 percent per year for 
31.5 	service years eight and nine.
31.6 	The ultimate future salary increase assumption is:

31.7	age
	A
	B
	C
	D
	E
	F
	G
	H
	
31.8	16
	5.95%
	5.95%
	11.00%
	7.70%
	8.00%
	6.90%
	7.7500%
	7.2500%
	
31.9	17
	5.90
	5.90
	11.00
	7.65
	8.00
	6.90
	7.7500
	7.2500
	
31.10	18
	5.85
	5.85
	11.00
	7.60
	8.00
	6.90
	7.7500
	7.2500
	
31.11	19
	5.80
	5.80
	11.00
	7.55
	8.00
	6.90
	7.7500
	7.2500
	
31.12	20
	5.75
	5.40
	11.00
	5.50
	6.90
	6.90
	7.7500
	7.2500
	
31.13	21
	5.75
	5.40
	11.00
	5.50
	6.90
	6.90
	7.1454
	6.6454
	
31.14	22
	5.75
	5.40
	10.50
	5.50
	6.90
	6.90
	7.0725
	6.5725
	
31.15	23
	5.75
	5.40
	10.00
	5.50
	6.85
	6.85
	7.0544
	6.5544
	
31.16	24
	5.75
	5.40
	9.50
	5.50
	6.80
	6.80
	7.0363
	6.5363
	
31.17	25
	5.75
	5.40
	9.00
	5.50
	6.75
	6.75
	7.0000
	6.5000
	
31.18	26
	5.75
	5.36
	8.70
	5.50
	6.70
	6.70
	7.0000
	6.5000
	
31.19	27
	5.75
	5.32
	8.40
	5.50
	6.65
	6.65
	7.0000
	6.5000
	
31.20	28
	5.75
	5.28
	8.10
	5.50
	6.60
	6.60
	7.0000
	6.5000
	
31.21	29
	5.75
	5.24
	7.80
	5.50
	6.55
	6.55
	7.0000
	6.5000
	
31.22	30
	5.75
	5.20
	7.50
	5.50
	6.50
	6.50
	7.0000
	6.5000
	
31.23	31
	5.75
	5.16
	7.30
	5.50
	6.45
	6.45
	7.0000
	6.5000
	
31.24	32
	5.75
	5.12
	7.10
	5.50
	6.40
	6.40
	7.0000
	6.5000
	
31.25	33
	5.75
	5.08
	6.90
	5.50
	6.35
	6.35
	7.0000
	6.5000
	
31.26	34
	5.75
	5.04
	6.70
	5.50
	6.30
	6.30
	7.0000
	6.5000
	
31.27	35
	5.75
	5.00
	6.50
	5.50
	6.25
	6.25
	7.0000
	6.5000
	
31.28	36
	5.75
	4.96
	6.30
	5.50
	6.20
	6.20
	6.9019
	6.4019
	
31.29	37
	5.75
	4.92
	6.10
	5.50
	6.15
	6.15
	6.8074
	6.3074
	
31.30	38
	5.75
	4.88
	5.90
	5.40
	6.10
	6.10
	6.7125
	6.2125
	
31.31	39
	5.75
	4.84
	5.70
	5.30
	6.05
	6.05
	6.6054
	6.1054
	
31.32	40
	5.75
	4.80
	5.50
	5.20
	6.00
	6.00
	6.5000
	6.0000
	
31.33	41
	5.75
	4.76
	5.40
	5.10
	5.90
	5.95
	6.3540
	5.8540
	
31.34	42
	5.75
	4.72
	5.30
	5.00
	5.80
	5.90
	6.2087
	5.7087
	
31.35	43
	5.65
	4.68
	5.20
	4.90
	5.70
	5.85
	6.0622
	5.5622
	
31.36	44
	5.55
	4.64
	5.10
	4.80
	5.60
	5.80
	5.9048
	5.4078
	
31.37	45
	5.45
	4.60
	5.00
	4.70
	5.50
	5.75
	5.7500
	5.2500
	
31.38	46
	5.35
	4.56
	4.95
	4.60
	5.40
	5.70
	5.6940
	5.1940
	
31.39	47
	5.25
	4.52
	4.90
	4.50
	5.30
	5.65
	5.6375
	5.1375
	
31.40	48
	5.15
	4.48
	4.85
	4.50
	5.20
	5.60
	5.5822
	5.0822
	
31.41	49
	5.05
	4.44
	4.80
	4.50
	5.10
	5.55
	5.5404
	5.0404
	
31.42	50
	4.95
	4.40
	4.75
	4.50
	5.00
	5.50
	5.5000
	5.0000
	
32.1	51
	4.85
	4.36
	4.75
	4.50
	4.90
	5.45
	5.4384
	4.9384
	
32.2	52
	4.75
	4.32
	4.75
	4.50
	4.80
	5.40
	5.3776
	4.8776
	
32.3	53
	4.65
	4.28
	4.75
	4.50
	4.70
	5.35
	5.3167
	4.8167
	
32.4	54
	4.55
	4.24
	4.75
	4.50
	4.60
	5.30
	5.2826
	4.7826
	
32.5	55
	4.45
	4.20
	4.75
	4.50
	4.50
	5.25
	5.2500
	4.7500
	
32.6	56
	4.35
	4.16
	4.75
	4.50
	4.40
	5.20
	5.2500
	4.7500
	
32.7	57
	4.25
	4.12
	4.75
	4.50
	4.30
	5.15
	5.2500
	4.7500
	
32.8	58
	4.25
	4.08
	4.75
	4.60
	4.20
	5.10
	5.2500
	4.7500
	
32.9	59
	4.25
	4.04
	4.75
	4.70
	4.10
	5.05
	5.2500
	4.7500
	
32.10	60
	4.25
	4.00
	4.75
	4.80
	4.00
	5.00
	5.2500
	4.7500
	
32.11	61
	4.25
	4.00
	4.75
	4.90
	3.90
	5.00
	5.2500
	4.7500
	
32.12	62
	4.25
	4.00
	4.75
	5.00
	3.80
	5.00
	5.2500
	4.7500
	
32.13	63
	4.25
	4.00
	4.75
	5.10
	3.70
	5.00
	5.2500
	4.7500
	
32.14	64
	4.25
	4.00
	4.75
	5.20
	3.60
	5.00
	5.2500
	4.7500
	
32.15	65
	4.25
	4.00
	4.75
	5.20
	3.50
	5.00
	5.2500
	4.7500
	
32.16	66
	4.25
	4.00
	4.75
	5.20
	3.50
	5.00
	5.2500
	4.7500
	
32.17	67
	4.25
	4.00
	4.75
	5.20
	3.50
	5.00
	5.2500
	4.7500
	
32.18	68
	4.25
	4.00
	4.75
	5.20
	3.50
	5.00
	5.2500
	4.7500
	
32.19	69
	4.25
	4.00
	4.75
	5.20
	3.50
	5.00
	5.2500
	4.7500
	
32.20	70
	4.25
	4.00
	4.75
	5.20
	3.50
	5.00
	5.2500
	4.7500
	
32.21	71
	4.25
	4.00
		5.20
					
32.22 	(c) Before July 2, 2010, the actuarial valuation must use the applicable following 
32.23 	payroll growth assumption for calculating the amortization requirement for the unfunded 
32.24 	actuarial accrued liability where the amortization retirement is calculated as a level 
32.25 	percentage of an increasing payroll:

32.26	plan
	payroll growth assumption
	
32.27	general state employees retirement plan
		4.50%
	
32.28	correctional state employees retirement plan
		4.50
	
32.29	State Patrol retirement plan
		4.50
	
32.30	legislators retirement plan
		4.50
	
32.31	judges retirement plan
		4.00
	
32.32	general public employees retirement plan
		4.50
	
32.33	public employees police and fire retirement plan
		4.50
	
32.34
32.35	local government correctional service retirement 
plan
		4.50
	
32.36	teachers retirement plan
		4.50
	
32.37	Duluth teachers retirement plan
		4.50
	
32.38	St. Paul teachers retirement plan
		5.00
	
32.39 	(d) After July 1, 2010, the assumptions set forth in paragraphs (b) and (c) continue to 
32.40 	apply, unless a different salary assumption or a different payroll increase assumption:
32.41 	(1) has been proposed by the governing board of the applicable retirement plan;
33.1 	(2) is accompanied by the concurring recommendation of the actuary retained under 
33.2 	section 356.214, subdivision 1, if applicable, or by the approved actuary preparing the 
33.3 	most recent actuarial valuation report if section 356.214 does not apply; and
33.4 	(3) has been approved or deemed approved under subdivision 18.

33.5 	Sec. 20. Minnesota Statutes 2009 Supplement, section 356.215, subdivision 11, 
33.6 	is amended to read:
33.7 		Subd. 11.Amortization contributions. (a) In addition to the exhibit indicating 
33.8 	the level normal cost, the actuarial valuation of the retirement plan must contain an 
33.9 	exhibit for financial reporting purposes indicating the additional annual contribution 
33.10 	sufficient to amortize the unfunded actuarial accrued liability and must contain an exhibit 
33.11 	for contribution determination purposes indicating the additional contribution sufficient 
33.12 	to amortize the unfunded actuarial accrued liability. For the retirement plans listed in 
33.13 	subdivision 8, paragraph (c), but excluding the MERF division of the Public Employees 
33.14 	Retirement Association, the additional contribution must be calculated on a level 
33.15 	percentage of covered payroll basis by the established date for full funding in effect when 
33.16 	the valuation is prepared, assuming annual payroll growth at the applicable percentage 
33.17 	rate set forth in subdivision 8, paragraph (c). For all other retirement plans and for the 
33.18 	MERF division of the Public Employees Retirement Association, the additional annual 
33.19 	contribution must be calculated on a level annual dollar amount basis. 
33.20 	(b) For any retirement plan other than the Minneapolis Employees Retirement Fund, 
33.21 	the general employeesa retirement plan of the Public Employees Retirement Association, 
33.22 	and the St. Paul Teachers Retirement Fund Association governed by paragraph (d), (e), 
33.23 	(f), (g), (h), (i), or (j), if there has not been a change in the actuarial assumptions used 
33.24 	for calculating the actuarial accrued liability of the fund, a change in the benefit plan 
33.25 	governing annuities and benefits payable from the fund, a change in the actuarial cost 
33.26 	method used in calculating the actuarial accrued liability of all or a portion of the fund, or 
33.27 	a combination of the three, which change or changes by itself or by themselves without 
33.28 	inclusion of any other items of increase or decrease produce a net increase in the unfunded 
33.29 	actuarial accrued liability of the fund, the established date for full funding is the first 
33.30 	actuarial valuation date occurring after June 1, 2020.
33.31 	(c) For any retirement plan other than the Minneapolis Employees Retirement 
33.32 	Fund and the general employees retirement plan of the Public Employees Retirement 
33.33 	Association, if there has been a change in any or all of the actuarial assumptions used 
33.34 	for calculating the actuarial accrued liability of the fund, a change in the benefit plan 
33.35 	governing annuities and benefits payable from the fund, a change in the actuarial cost 
34.1 	method used in calculating the actuarial accrued liability of all or a portion of the fund, 
34.2 	or a combination of the three, and the change or changes, by itself or by themselves and 
34.3 	without inclusion of any other items of increase or decrease, produce a net increase in the 
34.4 	unfunded actuarial accrued liability in the fund, the established date for full funding must 
34.5 	be determined using the following procedure:
34.6 	(i) the unfunded actuarial accrued liability of the fund must be determined in 
34.7 	accordance with the plan provisions governing annuities and retirement benefits and the 
34.8 	actuarial assumptions in effect before an applicable change;
34.9 	(ii) the level annual dollar contribution or level percentage, whichever is applicable, 
34.10 	needed to amortize the unfunded actuarial accrued liability amount determined under item 
34.11 	(i) by the established date for full funding in effect before the change must be calculated 
34.12 	using the interest assumption specified in subdivision 8 in effect before the change;
34.13 	(iii) the unfunded actuarial accrued liability of the fund must be determined in 
34.14 	accordance with any new plan provisions governing annuities and benefits payable from 
34.15 	the fund and any new actuarial assumptions and the remaining plan provisions governing 
34.16 	annuities and benefits payable from the fund and actuarial assumptions in effect before 
34.17 	the change;
34.18 	(iv) the level annual dollar contribution or level percentage, whichever is applicable, 
34.19 	needed to amortize the difference between the unfunded actuarial accrued liability amount 
34.20 	calculated under item (i) and the unfunded actuarial accrued liability amount calculated 
34.21 	under item (iii) over a period of 30 years from the end of the plan year in which the 
34.22 	applicable change is effective must be calculated using the applicable interest assumption 
34.23 	specified in subdivision 8 in effect after any applicable change;
34.24 	(v) the level annual dollar or level percentage amortization contribution under item 
34.25 	(iv) must be added to the level annual dollar amortization contribution or level percentage 
34.26 	calculated under item (ii);
34.27 	(vi) the period in which the unfunded actuarial accrued liability amount determined 
34.28 	in item (iii) is amortized by the total level annual dollar or level percentage amortization 
34.29 	contribution computed under item (v) must be calculated using the interest assumption 
34.30 	specified in subdivision 8 in effect after any applicable change, rounded to the nearest 
34.31 	integral number of years, but not to exceed 30 years from the end of the plan year in 
34.32 	which the determination of the established date for full funding using the procedure set 
34.33 	forth in this clause is made and not to be less than the period of years beginning in the 
34.34 	plan year in which the determination of the established date for full funding using the 
34.35 	procedure set forth in this clause is made and ending by the date for full funding in effect 
34.36 	before the change; and
35.1 	(vii) the period determined under item (vi) must be added to the date as of which 
35.2 	the actuarial valuation was prepared and the date obtained is the new established date 
35.3 	for full funding.
35.4 	(d) For the Minneapolis Employees Retirement Fund MERF division of the Public 
35.5 	Employees Retirement Association, the established date for full funding is June 30, 2020
35.6 	2031.
35.7 	(e) For the general employees retirement plan of the Public Employees Retirement 
35.8 	Association, the established date for full funding is June 30, 2031.
35.9 	(f) For the Teachers Retirement Association, the established date for full funding is 
35.10 	June 30, 2037.
35.11 	(g) For the correctional state employees retirement plan of the Minnesota State 
35.12 	Retirement System, the established date for full funding is June 30, 2038.
35.13 	(h) For the judges retirement plan, the established date for full funding is June 
35.14 	30, 2038.
35.15 	(i) For the public employees police and fire retirement plan, the established date 
35.16 	for full funding is June 30, 2038.
35.17 	(j) For the St. Paul Teachers Retirement Fund Association, the established date for 
35.18 	full funding is June 30 of the 25th year from the valuation date. In addition to other 
35.19 	requirements of this chapter, the annual actuarial valuation shall must contain an exhibit 
35.20 	indicating the funded ratio and the deficiency or sufficiency in annual contributions when 
35.21 	comparing liabilities to the market value of the assets of the fund as of the close of the 
35.22 	most recent fiscal year.
35.23 	(k) For the retirement plans for which the annual actuarial valuation indicates an 
35.24 	excess of valuation assets over the actuarial accrued liability, the valuation assets in 
35.25 	excess of the actuarial accrued liability must be recognized as a reduction in the current 
35.26 	contribution requirements by an amount equal to the amortization of the excess expressed 
35.27 	as a level percentage of pay over a 30-year period beginning anew with each annual 
35.28 	actuarial valuation of the plan.

35.29 	Sec. 21. Minnesota Statutes 2008, section 422A.101, subdivision 3, is amended to read:
35.30 		Subd. 3.State contributions. (a) Subject to the limitation set forth in paragraph 
35.31 	(c), the state shall pay to the MERF division account of the Public Employees Retirement 
35.32 	Association with respect to the former Minneapolis Employees Retirement Fund annually 
35.33 	an amount equal to the amount calculated under paragraph (b).
35.34 	(b) The payment amount is an amount equal to the financial requirements of the 
35.35 	Minneapolis Employees Retirement FundMERF division of the Public Employees 
36.1 	Retirement Association reported in the actuarial valuation of the fundgeneral employees 
36.2 	retirement plan of the Public Employees Retirement Association prepared by the actuary 
36.3 	retained under section 356.214 consistent with section 356.215 for the most recent year 
36.4 	but based on a target date for full amortization of the unfunded actuarial accrued liabilities 
36.5 	by June 30, 2020 2031, less the amount of employee contributions required under section 
36.6 	422A.10 353.50, subdivision 7, paragraph (b), and the amount of employer contributions 
36.7 	required under subdivisions 1a, 2, and 2a section 353.50, subdivision 7, paragraphs (c) 
36.8 	and (d). Payments shallmust be made September 15 annually. 
36.9 	(c) The annual state contribution under this subdivision may not exceed $9,000,000, 
36.10 	plus the cost of the annual supplemental benefit determined under Minnesota Statutes 
36.11 	2008, section 356.43, through June 30, 2012, and may not exceed $9,000,000, plus the 
36.12 	cost of the annual supplemental benefit determined under Minnesota Statutes 2008, section 
36.13 	356.43, plus $15,000,000 annually after June 30, 2012, and until June 30, 2031. 
36.14 	(d) Annually and after June 30, 2012, if the amount determined under paragraph 
36.15 	(b) exceeds $9,000,000 the applicable maximum amount specified in paragraph (c), 
36.16 	the excess must be allocated to and paid to the fund by the employers identified in 
36.17 	Minnesota Statutes 2008, section 422A.101, subdivisions 1a and, 2, and 2a other than 
36.18 	units of metropolitan government. Each employer's share of the excess is proportionate 
36.19 	to the employer's share of the fund's unfunded actuarial accrued liability as disclosed in 
36.20 	the annual actuarial valuation prepared by the actuary retained under section 356.214
36.21 	compared to the total unfunded actuarial accrued liability as of July 1, 2009, attributed 
36.22 	to all employers identified in Minnesota Statutes 2008, section 422A.101, subdivisions 
36.23 	1a and 2, other than units of metropolitan government. Payments must be made in equal 
36.24 	installments as set forth in paragraph (b).
36.25 	(e) State contributions under this section end on September 15, 2031, or on 
36.26 	September 1 following the first date on which the current assets of the MERF division 
36.27 	of the Public Employees Retirement Association equal or exceed the actuarial accrued 
36.28 	liability of the MERF division of the Public Employees Retirement Association, 
36.29 	whichever occurs earlier.

36.30 	Sec. 22. Minnesota Statutes 2008, section 422A.26, is amended to read:
36.31 	422A.26 COVERAGE BY THE PUBLIC EMPLOYEES RETIREMENT 
36.32 	ASSOCIATION.
36.33 	Notwithstanding section 422A.09, or any other law to the contrary, any person 
36.34 	whose employment by, or assumption of a position as an appointed or elected officer 
36.35 	of, the city of Minneapolis, any of the boards, departments, or commissions operated 
37.1 	as a department of the city of Minneapolis or independently if financed in whole or in 
37.2 	part by funds of the city of Minneapolis, the Metropolitan Airports Commission, the 
37.3 	former Minneapolis Employees Retirement Fund, or Special School District Number 1 if 
37.4 	the person is not a member of the Minneapolis Teachers Retirement Fund Association 
37.5 	by virtue of that employment or position, initially commences on or after July 1, 1979 
37.6 	shall beis a member of the general employees retirement plan of the Public Employees 
37.7 	Retirement Association unless excluded from membership pursuant tounder section 
37.8 	353.01, subdivision 2b. In no event shall there be any new members of the contributing 
37.9 	class of the Minneapolis employees fund on or after July 1, 1979.  

37.10 	Sec. 23. JULY 1, 2010, MERF DIVISION ACTUARIAL VALUATION 
37.11 	ASSUMPTIONS.
 37.12 	The approved actuary retained by the Minneapolis Employees Retirement Fund shall 
37.13 	compare the actuarial assumptions to be used for the July 1, 2010, actuarial valuation of 
37.14 	the general employees retirement plan of the Public Employees Retirement Association 
37.15 	with the actuarial assumptions used to prepare the July 1, 2009, actuarial valuation of the 
37.16 	Minneapolis Employees Retirement Fund and, on or before July 1, 2010, shall recommend 
37.17 	to the approved actuary retained by the Public Employees Retirement Association and to 
37.18 	the Legislative Commission on Pensions and Retirement the actuarial assumptions that 
37.19 	the actuary believes would be appropriate for the MERF division portion of the actuarial 
37.20 	valuation of the general employees retirement plan of the Public Employees Retirement 
37.21 	Association. Any actuarial assumption changes related to the MERF division must be 
37.22 	approved under Minnesota Statutes, section 356.215, subdivision 18.

37.23 	Sec. 24. MINNEAPOLIS MUNICIPAL RETIREMENT ASSOCIATION.
 37.24 	(a) The administrative consolidation of the former Minneapolis Employees 
37.25 	Retirement Fund into the general employees retirement plan of the Public Employees 
37.26 	Retirement Association and the merger of the MERF division of the Public Employees 
37.27 	Retirement Association into the general employees retirement plan of the Public 
37.28 	Employees Retirement Association does not affect the function of the Minneapolis 
37.29 	Municipal Retirement Association, a nonprofit corporation, to monitor the administration 
37.30 	of the retirement coverage for former members of the former Minneapolis Employees 
37.31 	Retirement Fund.
37.32 	(b) Nothing in this article entitles the Minneapolis Municipal Retirement Association 
37.33 	to receive any revenue derived from taxes or obligates the Public Employees Retirement 
37.34 	Association to undertake any special duties with respect to the corporation.

38.1 	Sec. 25. TRANSFER OF MERF EMPLOYEES.
 38.2 	(a) Unless the employee elects the severance pay option under paragraph (c), 
38.3 	full-time employees of the Minneapolis Employees Retirement Fund first employed 
38.4 	before June 30, 2008, and employed full time by the Minneapolis Employees Retirement 
38.5 	Fund on June 29, 2010, with the employment title of benefits coordinator, are transferred 
38.6 	to employment by the city of Minneapolis on July 1, 2010. The chief human relations 
38.7 	official of the city of Minneapolis shall place the transferred employee in an appropriate 
38.8 	employment position based on the employee's education and employment experience. 
38.9 	Transferred employees must have their accumulated, but unused, vacation and sick leave 
38.10 	balances as of June 30, 2010, posted to the individual accounts with the new employer. 
38.11 	The transferred employees must receive length of service credit for time served with the 
38.12 	Minneapolis Employees Retirement Fund. The transferred employee must be given the 
38.13 	opportunity as of the date of transfer to be covered for all health and other insurance 
38.14 	benefits offered by the new employer. Upon the transfer of the employee, the Minneapolis 
38.15 	Employees Retirement Fund shall transfer assets to the city of Minneapolis equal to the 
38.16 	present value of any accumulated unused vacation or sick leave balances as of the date 
38.17 	of transfer.
38.18 	(b) Unless the employee elects the severance pay option under paragraph (c), 
38.19 	full-time employees of the Minneapolis Employees Retirement Fund first employed before 
38.20 	June 30, 2008, and employed full time by the Minneapolis Employees Retirement Fund 
38.21 	on June 29, 2010, with the employment title of accounting manager or accountant II are 
38.22 	transferred to employment by the Public Employees Retirement Association on July 1, 
38.23 	2010. The chief human relations official of the Public Employees Retirement Association 
38.24 	shall place the transferred employee in an appropriate employment position based on the 
38.25 	employee's education and employment experience. Transferred employees must have 
38.26 	their accumulated, but unused, vacation and sick leave balances as of June 30, 2010, 
38.27 	posted to the individual accounts with the new employer. The transferred employees 
38.28 	must receive length of service credit for time served with the Minneapolis Employees 
38.29 	Retirement Fund. The transferred employee must be given the opportunity as of the 
38.30 	date of transfer to be covered for all health and other insurance benefits offered by the 
38.31 	new employer. Upon the transfer of the employee, the executive director of the Public 
38.32 	Employees Retirement Association shall deduct from any assets transferred under section 
38.33 	353.50 an amount equal to the present value of any accumulated unused vacation or sick 
38.34 	leave balances as of the date of transfer.
38.35 	(c) An employee covered by paragraph (a) or (b) who elects not to transfer to the 
38.36 	new employer unit is granted severance pay in an amount equivalent to one year of salary 
39.1 	based on the last annual salary rate received by the employee. The election must be 
39.2 	made prior to June 30, 2010, and is irrevocable. The severance pay is payable from the 
39.3 	Minneapolis Employees Retirement Fund on June 30, 2010.

39.4 	Sec. 26. REVISOR'S INSTRUCTION.
 39.5 	In the next and future editions of Minnesota Statutes, the revisor of statutes shall 
39.6 	renumber Minnesota Statutes, section 422A.101, subdivision 3, as Minnesota Statutes, 
39.7 	section 353.505, and shall renumber Minnesota Statutes, section 422A.26, as Minnesota 
39.8 	Statutes, section 353.855. The revisor of statutes shall make conforming changes in 
39.9 	Minnesota Statutes and Minnesota Rules consistent with the renumbering.

39.10 	Sec. 27.  REPEALER.
 39.11 	Minnesota Statutes 2008, sections 13.63, subdivision 1; 69.011, subdivision 2a; 
39.12 	356.43; 422A.01, subdivisions 1, 2, 3, 4, 4a, 5, 6, 7, 8, 9, 10, 11, 12, 13a, 17, and 18; 
39.13 	422A.02; 422A.03; 422A.04; 422A.05, subdivisions 1, 2a, 2b, 2c, 2d, 2e, 2f, 5, 6, 
39.14 	and 8; 422A.06, subdivisions 1, 2, 3, 5, 6, and 7; 422A.08, subdivision 1; 422A.09; 
39.15 	422A.10; 422A.101, subdivisions 1, 1a, 2, and 2a; 422A.11; 422A.12; 422A.13; 422A.14, 
39.16 	subdivision 1; 422A.15; 422A.151; 422A.155; 422A.156; 422A.16, subdivisions 1, 2, 3, 
39.17 	4, 5, 6, 7, 8, 9, and 10; 422A.17; 422A.18, subdivisions 1, 2, 3, 4, 5, and 7; 422A.19; 
39.18 	422A.20; 422A.21; 422A.22, subdivisions 1, 3, 4, and 6; 422A.23, subdivisions 1, 2, 5, 6, 
39.19 	7, 8, 9, 10, 11, and 12; 422A.231; 422A.24; and 422A.25, are repealed.
39.20 	Minnesota Statutes 2009 Supplement, sections 422A.06, subdivision 8; and 
39.21 	422A.08, subdivision 5, are repealed.

39.22 	Sec. 28. EFFECTIVE DATE.
 39.23 	 Sections 1 to 27 are effective June 30, 2010.

39.24 	ARTICLE 2
39.25 	CONFORMING CHANGES RELATED TO THE MERF 
39.26 	ADMINISTRATIVE CONSOLIDATION

39.27 	Section 1. Minnesota Statutes 2009 Supplement, section 6.67, is amended to read:
39.28 	6.67 PUBLIC ACCOUNTANTS; REPORT OF POSSIBLE MISCONDUCT.
39.29 	Whenever a public accountant in the course of auditing the books and affairs of a 
39.30 	political subdivision or a local public pension plan governed by section 69.77, sections 
39.31 	69.771 to 69.775, or chapter 354A, 422A, 423B, 423C, or 424A, discovers evidence 
39.32 	pointing to nonfeasance, misfeasance, or malfeasance, on the part of an officer or 
40.1 	employee in the conduct of duties and affairs, the public accountant shall promptly make 
40.2 	a report of such discovery to the state auditor and the county attorney of the county in 
40.3 	which the governmental unit is situated and the public accountant shall also furnish a 
40.4 	copy of the report of audit upon completion to said officers. The county attorney shall 
40.5 	act on such report in the same manner as required by law for reports made to the county 
40.6 	attorney by the state auditor.

40.7 	Sec. 2. Minnesota Statutes 2008, section 11A.23, subdivision 4, is amended to read:
40.8 		Subd. 4.Covered retirement funds and plans. The provisions of this section shall
40.9 	must apply to the following retirement funds and plans:
40.10 	(1) Board of Trustees of the Minnesota State Colleges and Universities supplemental 
40.11 	retirement plan established under chapter 354C;
40.12 	(2) state employees retirement fund established pursuant to chapter 352;
40.13 	(3) correctional employees retirement plan established pursuant to chapter 352;
40.14 	(4) State Patrol retirement fund established pursuant to chapter 352B;
40.15 	(5) unclassified employees retirement plan established pursuant to chapter 352D;
40.16 	(6) public general employees retirement fund established pursuant to chapter 353;
40.17 	(7) public employees police and fire fund established pursuant to chapter 353;
40.18 	(8) teachers' retirement fund established pursuant to chapter 354;
40.19 	(9) judges' retirement fund established pursuant to chapter 490; and
40.20 	(10) any other funds required by law to be invested by the board.

40.21 	Sec. 3. Minnesota Statutes 2008, section 13D.01, subdivision 1, is amended to read:
40.22 		Subdivision 1.In executive branch, local government. All meetings, including 
40.23 	executive sessions, must be open to the public
40.24 	(a) of a state
40.25 	(1) agency,
40.26 	(2) board,
40.27 	(3) commission, or
40.28 	(4) department,
40.29 	when required or permitted by law to transact public business in a meeting;
40.30 	(b) of the governing body of a
40.31 	(1) school district however organized,
40.32 	(2) unorganized territory,
40.33 	(3) county,
40.34 	(4) statutory or home rule charter city,
41.1 	(5) town, or
41.2 	(6) other public body;
41.3 	(c) of any
41.4 	(1) committee,
41.5 	(2) subcommittee,
41.6 	(3) board,
41.7 	(4) department, or
41.8 	(5) commission,
41.9 	of a public body; and
41.10 	(d) of the governing body or a committee of:
41.11 	(1) a statewide public pension plan defined in section 356A.01, subdivision 24; or  
41.12 	(2) a local public pension plan governed by section 69.77, sections 69.771 to 69.775, 
41.13 	or chapter 354A, 422A, or 423B.  

41.14 	Sec. 4. Minnesota Statutes 2008, section 43A.17, subdivision 9, is amended to read:
41.15 		Subd. 9.Political subdivision compensation limit. (a) The salary and the value of 
41.16 	all other forms of compensation of a person employed by a political subdivision of this 
41.17 	state, excluding a school district, or employed under section 422A.03 may not exceed 110 
41.18 	percent of the salary of the governor as set under section 15A.082, except as provided 
41.19 	in this subdivision. For purposes of this subdivision, "political subdivision of this state" 
41.20 	includes a statutory or home rule charter city, county, town, metropolitan or regional 
41.21 	agency, or other political subdivision, but does not include a hospital, clinic, or health 
41.22 	maintenance organization owned by such a governmental unit.
41.23 	(b) Beginning in 2006, the limit in paragraph (a) shall must be adjusted annually in 
41.24 	January. The limit shall must equal the limit for the prior year increased by the percentage 
41.25 	increase, if any, in the Consumer Price Index for all-urban consumers from October of the 
41.26 	second prior year to October of the immediately prior year.
41.27 	(c) Deferred compensation and payroll allocations to purchase an individual annuity 
41.28 	contract for an employee are included in determining the employee's salary. Other forms of 
41.29 	compensation which shall must be included to determine an employee's total compensation 
41.30 	are all other direct and indirect items of compensation which are not specifically excluded 
41.31 	by this subdivision. Other forms of compensation which shall must not be included in a 
41.32 	determination of an employee's total compensation for the purposes of this subdivision are:
41.33 	(1) employee benefits that are also provided for the majority of all other full-time 
41.34 	employees of the political subdivision, vacation and sick leave allowances, health and 
41.35 	dental insurance, disability insurance, term life insurance, and pension benefits or like 
42.1 	benefits the cost of which is borne by the employee or which is not subject to tax as 
42.2 	income under the Internal Revenue Code of 1986;
42.3 	(2) dues paid to organizations that are of a civic, professional, educational, or 
42.4 	governmental nature; and
42.5 	(3) reimbursement for actual expenses incurred by the employee which the 
42.6 	governing body determines to be directly related to the performance of job responsibilities, 
42.7 	including any relocation expenses paid during the initial year of employment.
42.8 	The value of other forms of compensation shall be is the annual cost to the political 
42.9 	subdivision for the provision of the compensation.
42.10 	(d) The salary of a medical doctor or doctor of osteopathy occupying a position that 
42.11 	the governing body of the political subdivision has determined requires an M.D. or D.O. 
42.12 	degree is excluded from the limitation in this subdivision.
42.13 	(e) The commissioner may increase the limitation in this subdivision for a position 
42.14 	that the commissioner has determined requires special expertise necessitating a higher 
42.15 	salary to attract or retain a qualified person. The commissioner shall review each proposed 
42.16 	increase giving due consideration to salary rates paid to other persons with similar 
42.17 	responsibilities in the state and nation. The commissioner may not increase the limitation 
42.18 	until the commissioner has presented the proposed increase to the Legislative Coordinating 
42.19 	Commission and received the commission's recommendation on it. The recommendation 
42.20 	is advisory only. If the commission does not give its recommendation on a proposed 
42.21 	increase within 30 days from its receipt of the proposal, the commission is deemed to have 
42.22 	made no recommendation. If the commissioner grants or granted an increase under this 
42.23 	paragraph, the new limitation shall must be adjusted beginning in August 2005 and in each 
42.24 	subsequent calendar year in January by the percentage increase equal to the percentage 
42.25 	increase, if any, in the Consumer Price Index for all-urban consumers from October of the 
42.26 	second prior year to October of the immediately prior year.

42.27 	Sec. 5. Minnesota Statutes 2008, section 43A.316, subdivision 8, is amended to read:
42.28 		Subd. 8.Continuation of coverage. (a) A former employee of an employer 
42.29 	participating in the program who is receiving a public pension disability benefit or an 
42.30 	annuity or has met the age and service requirements necessary to receive an annuity under 
42.31 	chapter 353, 353C, 354, 354A, 356, 422A, 423, 423A, or 424, or Minnesota Statutes 
42.32 	2008, chapter 422A, and the former employee's dependents, are eligible to participate in 
42.33 	the program. This participation is at the person's expense unless a collective bargaining 
42.34 	agreement or personnel policy provides otherwise. Premiums for these participants must 
42.35 	be established by the commissioner.
43.1 	The commissioner may provide policy exclusions for preexisting conditions 
43.2 	only when there is a break in coverage between a participant's coverage under the 
43.3 	employment-based group insurance program and the participant's coverage under this 
43.4 	section. An employer shall notify an employee of the option to participate under this 
43.5 	paragraph no later than the effective date of retirement. The retired employee or the 
43.6 	employer of a participating group on behalf of a current or retired employee shall notify 
43.7 	the commissioner within 30 days of the effective date of retirement of intent to participate 
43.8 	in the program according to the rules established by the commissioner.
43.9 	(b) The spouse of a deceased employee or former employee may purchase the 
43.10 	benefits provided at premiums established by the commissioner if the spouse was a 
43.11 	dependent under the employee's or former employee's coverage under this section at the 
43.12 	time of the death. The spouse remains eligible to participate in the program as long as 
43.13 	the group that included the deceased employee or former employee participates in the 
43.14 	program. Coverage under this clause must be coordinated with relevant insurance benefits 
43.15 	provided through the federally sponsored Medicare program.
43.16 	(c) The program benefits must continue in the event of strike permitted by section 
43.17 	179A.18, if the exclusive representative chooses to have coverage continue and the 
43.18 	employee pays the total monthly premiums when due. 
43.19 	(d) A participant who discontinues coverage may not reenroll.
43.20 	Persons participating under these paragraphs shall make appropriate premium 
43.21 	payments in the time and manner established by the commissioner.

43.22 	Sec. 6. Minnesota Statutes 2009 Supplement, section 69.011, subdivision 1, is 
43.23 	amended to read:
43.24 		Subdivision 1.Definitions. Unless the language or context clearly indicates that 
43.25 	a different meaning is intended, the following words and terms, for the purposes of this 
43.26 	chapter and chapters 423, 423A, 424 and 424A, have the meanings ascribed to them:
43.27 	(a) "Commissioner" means the commissioner of revenue.
43.28 	(b) "Municipality" means:
43.29 	(1) a home rule charter or statutory city;
43.30 	(2) an organized town;
43.31 	(3) a park district subject to chapter 398;
43.32 	(4) the University of Minnesota;
43.33 	(5) for purposes of the fire state aid program only, an American Indian tribal 
43.34 	government entity located within a federally recognized American Indian reservation;
44.1 	(6) for purposes of the police state aid program only, an American Indian tribal 
44.2 	government with a tribal police department which exercises state arrest powers under 
44.3 	section 626.90, 626.91, 626.92, or 626.93; 
44.4 	(7) for purposes of the police state aid program only, the Metropolitan Airports 
44.5 	Commission with respect to peace officers covered under chapter 422A; and
44.6 	(8) for purposes of the police state aid program only, the Department of Natural 
44.7 	Resources and the Department of Public Safety with respect to peace officers covered 
44.8 	under chapter 352B.
44.9 	(c) "Minnesota Firetown Premium Report" means a form prescribed by the 
44.10 	commissioner containing space for reporting by insurers of fire, lightning, sprinkler 
44.11 	leakage and extended coverage premiums received upon risks located or to be performed 
44.12 	in this state less return premiums and dividends.
44.13 	(d) "Firetown" means the area serviced by any municipality having a qualified fire 
44.14 	department or a qualified incorporated fire department having a subsidiary volunteer 
44.15 	firefighters' relief association.
44.16 	(e) "Market value" means latest available market value of all property in a taxing 
44.17 	jurisdiction, whether the property is subject to taxation, or exempt from ad valorem 
44.18 	taxation obtained from information which appears on abstracts filed with the commissioner 
44.19 	of revenue or equalized by the State Board of Equalization.
44.20 	(f) "Minnesota Aid to Police Premium Report" means a form prescribed by the 
44.21 	commissioner for reporting by each fire and casualty insurer of all premiums received 
44.22 	upon direct business received by it in this state, or by its agents for it, in cash or otherwise, 
44.23 	during the preceding calendar year, with reference to insurance written for insuring against 
44.24 	the perils contained in auto insurance coverages as reported in the Minnesota business 
44.25 	schedule of the annual financial statement which each insurer is required to file with 
44.26 	the commissioner in accordance with the governing laws or rules less return premiums 
44.27 	and dividends.
44.28 	(g) "Peace officer" means any person:
44.29 	(1) whose primary source of income derived from wages is from direct employment 
44.30 	by a municipality or county as a law enforcement officer on a full-time basis of not less 
44.31 	than 30 hours per week;
44.32 	(2) who has been employed for a minimum of six months prior to December 31 
44.33 	preceding the date of the current year's certification under subdivision 2, clause (b);
44.34 	(3) who is sworn to enforce the general criminal laws of the state and local 
44.35 	ordinances;
45.1 	(4) who is licensed by the Peace Officers Standards and Training Board and is 
45.2 	authorized to arrest with a warrant; and
45.3 	(5) who is a member of a local police relief association to which section 69.77 
45.4 	applies the Minneapolis Police Relief Association, the State Patrol retirement plan, or the 
45.5 	public employees police and fire fund, or the Minneapolis Employees Retirement Fund. 
45.6 	(h) "Full-time equivalent number of peace officers providing contract service" means 
45.7 	the integral or fractional number of peace officers which would be necessary to provide 
45.8 	the contract service if all peace officers providing service were employed on a full-time 
45.9 	basis as defined by the employing unit and the municipality receiving the contract service.
45.10 	(i) "Retirement benefits other than a service pension" means any disbursement 
45.11 	authorized under section 424A.05, subdivision 3, clauses (2) and (3). 
45.12 	(j) "Municipal clerk, municipal clerk-treasurer, or county auditor" means the person 
45.13 	who was elected or appointed to the specified position or, in the absence of the person, 
45.14 	another person who is designated by the applicable governing body. In a park district, 
45.15 	the clerk is the secretary of the board of park district commissioners. In the case of the 
45.16 	University of Minnesota, the clerk is that official designated by the Board of Regents. 
45.17 	For the Metropolitan Airports Commission, the clerk is the person designated by the 
45.18 	commission. For the Department of Natural Resources or the Department of Public Safety, 
45.19 	the clerk is the respective commissioner. For a tribal police department which exercises 
45.20 	state arrest powers under section 626.90, 626.91, 626.92, or 626.93, the clerk is the person 
45.21 	designated by the applicable American Indian tribal government. 
45.22 	(k) "Voluntary statewide lump-sum volunteer firefighter retirement plan" means the 
45.23 	retirement plan established by chapter 353G.

45.24 	Sec. 7. Minnesota Statutes 2008, section 69.021, subdivision 10, is amended to read:
45.25 		Subd. 10.Reduction in police state aid apportionment. (a) The commissioner of 
45.26 	revenue shall reduce the apportionment of police state aid under subdivisions 5, paragraph 
45.27 	(b), 6, and 7a, for eligible employer units by any excess police state aid.
45.28 	(b)  "Excess police state aid" is:
45.29 	(1) for counties and for municipalities in which police retirement coverage is 
45.30 	provided wholly by the public employees police and fire fund and all police officers are 
45.31 	members of the plan governed by sections 353.63 to 353.657, the amount in excess of the 
45.32 	employer's total prior calendar year obligation as defined in paragraph (c), as certified by 
45.33 	the executive director of the Public Employees Retirement Association; 
45.34 	(2) for municipalities in which police retirement coverage is provided in part by the 
45.35 	public employees police and fire fund governed by sections 353.63 to 353.657 and in 
46.1 	part by a local police consolidation account governed by chapter 353A, and established 
46.2 	before March 2, 1999, for which the municipality declined merger under section 353.665, 
46.3 	subdivision 1, or established after March 1, 1999, the amount in excess of the employer's 
46.4 	total prior calendar year obligation as defined in paragraph (c), plus the amount of the 
46.5 	employer's total prior calendar year obligation under section 353A.09, subdivision 5, 
46.6 	paragraphs (a) and (b), as certified by the executive director of the Public Employees 
46.7 	Retirement Association; 
46.8 	(3)  for municipalities in which police retirement coverage is provided by the public 
46.9 	employees police and fire plan governed by sections 353.63 to 353.657, in which police 
46.10 	retirement coverage was provided by a police consolidation account under chapter 
46.11 	353A before July 1, 1999, and for which the municipality has an additional municipal 
46.12 	contribution under section 353.665, subdivision 8, paragraph (b), the amount in excess of 
46.13 	the employer's total prior calendar year obligation as defined in paragraph (c), plus the 
46.14 	amount of any additional municipal contribution under section 353.665, subdivision 8, 
46.15 	paragraph (b), until the year 2010, as certified by the executive director of the Public 
46.16 	Employees Retirement Association; 
46.17 	(4) for municipalities in which police retirement coverage is provided in part by the 
46.18 	public employees police and fire fund governed by sections 353.63 to 353.657 and in part 
46.19 	by a local police relief association governed by sections 69.77 and 423A.01, the amount 
46.20 	in excess of the employer's total prior calendar year obligation as defined in paragraph 
46.21 	(c), as certified by the executive director of the public employees retirement association, 
46.22 	plus the amount of the financial requirements of the relief association certified to the 
46.23 	applicable municipality during the prior calendar year under section 69.77, subdivisions 4 
46.24 	and 5, reduced by the amount of member contributions deducted from the covered salary 
46.25 	of the relief association during the prior calendar year under section 69.77, subdivision 3, 
46.26 	as certified by the chief administrative officer of the applicable municipality; 
46.27 	(5) for the Metropolitan Airports Commission, if there are police officers hired 
46.28 	before July 1, 1978, with retirement coverage by the Minneapolis Employees Retirement 
46.29 	Fund remaining, the amount in excess of the commission's total prior calendar year 
46.30 	obligation as defined in paragraph (c), as certified by the executive director of the Public 
46.31 	Employees Retirement Association, plus the amount determined by expressing the 
46.32 	commission's total prior calendar year contribution to the Minneapolis Employees 
46.33 	Retirement Fund under section 422A.101, subdivisions 2 and 2a, as a percentage of 
46.34 	the commission's total prior calendar year covered payroll for commission employees 
46.35 	covered by the Minneapolis Employees Retirement Fund and applying that percentage 
46.36 	to the commission's total prior calendar year covered payroll for commission police 
47.1 	officers covered by the Minneapolis Employees Retirement Fund, as certified by the chief 
47.2 	administrative officer of the Metropolitan Airports Commission; and 
47.3 	(6) for the Department of Natural Resources and for the Department of Public 
47.4 	Safety, the amount in excess of the employer's total prior calendar year obligation under 
47.5 	section 352B.02, subdivision 1c, for plan members who are peace officers under section 
47.6 	69.011, subdivision 1, clause (g), as certified by the executive director of the Minnesota 
47.7 	State Retirement System. 
47.8 	(c) The employer's total prior calendar year obligation with respect to the public 
47.9 	employees police and fire plan is the total prior calendar year obligation under section 
47.10 	353.65, subdivision 3, for police officers as defined in section 353.64, subdivision 2, 
47.11 	and the actual total prior calendar year obligation under section 353.65, subdivision 3, 
47.12 	for firefighters, as defined in section 353.64, subdivision 3, but not to exceed for those 
47.13 	firefighters the applicable following amounts: 

47.14		Municipality
	Maximum Amount

47.15		Albert Lea
	$54,157.01
		
47.16		Anoka
	10,399.31
		
47.17		Apple Valley
	5,442.44
		
47.18		Austin
	49,864.73
		
47.19		Bemidji
	27,671.38
		
47.20		Brooklyn Center
	6,605.92
		
47.21		Brooklyn Park
	24,002.26
		
47.22		Burnsville
	15,956.00
		
47.23		Cloquet
	4,260.49
		
47.24		Coon Rapids
	39,920.00
		
47.25		Cottage Grove
	8,588.48
		
47.26		Crystal
	5,855.00
		
47.27		East Grand Forks
	51,009.88
		
47.28		Edina
	32,251.00
		
47.29		Elk River
	5,216.55
		
47.30		Ely
	13,584.16
		
47.31		Eveleth
	16,288.27
		
47.32		Fergus Falls
	6,742.00
		
47.33		Fridley
	33,420.64
		
47.34		Golden Valley
	11,744.61
		
47.35		Hastings
	16,561.00
		
47.36		Hopkins
	4,324.23
		
47.37		International Falls
	14,400.69
		
47.38		Lakeville
	782.35
		
47.39		Lino Lakes
	5,324.00
		
47.40		Little Falls
	7,889.41
		
48.1		Maple Grove
	6,707.54
		
48.2		Maplewood
	8,476.69
		
48.3		Minnetonka
	10,403.00
		
48.4		Montevideo
	1,307.66
		
48.5		Moorhead
	68,069.26
		
48.6		New Hope
	6,739.72
		
48.7		North St. Paul
	4,241.14
		
48.8		Northfield
	770.63
		
48.9		Owatonna
	37,292.67
		
48.10		Plymouth
	6,754.71
		
48.11		Red Wing
	3,504.01
		
48.12		Richfield
	53,757.96
		
48.13		RosemontRosemount
	1,712.55
		
48.14		Roseville
	9,854.51
		
48.15		St. Anthony
	33,055.00
		
48.16		St. Louis Park
	53,643.11
		
48.17		Thief River Falls
	28,365.04
		
48.18		Virginia
	31,164.46
		
48.19		Waseca
	11,135.17
		
48.20		West St. Paul
	15,707.20
		
48.21		White Bear Lake
	6,521.04
		
48.22		Woodbury
	3,613.00
		
48.23		any other municipality
	0.00
		
48.24 	(d) The total amount of excess police state aid must be deposited in the excess 
48.25 	police state-aid account in the general fund, administered and distributed as provided 
48.26 	in subdivision 11.

48.27 	Sec. 8. Minnesota Statutes 2009 Supplement, section 69.031, subdivision 5, is 
48.28 	amended to read:
48.29 		Subd. 5.Deposit of state aid. (a) If the municipality or the independent nonprofit 
48.30 	firefighting corporation is covered by the voluntary statewide lump-sum volunteer 
48.31 	firefighter retirement plan under chapter 353G, the executive director shall credit the fire 
48.32 	state aid against future municipal contribution requirements under section 353G.08 and 
48.33 	shall notify the municipality or independent nonprofit firefighting corporation of the fire 
48.34 	state aid so credited at least annually. If the municipality or the independent nonprofit 
48.35 	firefighting corporation is not covered by the voluntary statewide lump-sum volunteer 
48.36 	firefighter retirement plan, the municipal treasurer shall, within 30 days after receipt, 
48.37 	transmit the fire state aid to the treasurer of the duly incorporated firefighters' relief 
48.38 	association if there is one organized and the association has filed a financial report with the 
48.39 	municipality. If the relief association has not filed a financial report with the municipality, 
49.1 	the municipal treasurer shall delay transmission of the fire state aid to the relief association 
49.2 	until the complete financial report is filed. If the municipality or independent nonprofit 
49.3 	firefighting corporation is not covered by the voluntary statewide lump-sum volunteer 
49.4 	firefighter retirement plan, if there is no relief association organized, or if the association 
49.5 	has dissolved or has been removed as trustees of state aid, then the treasurer of the 
49.6 	municipality shall deposit the money in the municipal treasury and the money may be 
49.7 	disbursed only for the purposes and in the manner set forth in section 424A.08 or for the 
49.8 	payment of the employer contribution requirement with respect to firefighters covered by 
49.9 	the public employees police and fire retirement plan under section 353.65, subdivision 3.
49.10 	(b) The municipal treasurer, upon receipt of the police state aid, shall disburse the 
49.11 	police state aid in the following manner:
49.12 	(1) For a municipality in which a local police relief association exists and all peace 
49.13 	officers are members of the association, the total state aid must be transmitted to the 
49.14 	treasurer of the relief association within 30 days of the date of receipt, and the treasurer 
49.15 	of the relief association shall immediately deposit the total state aid in the special fund 
49.16 	of the relief association;
49.17 	(2) For a municipality in which police retirement coverage is provided by the public 
49.18 	employees police and fire fund and all peace officers are members of the fund, including 
49.19 	municipalities covered by section 353.665, the total state aid must be applied toward the 
49.20 	municipality's employer contribution to the public employees police and fire fund under 
49.21 	sections 353.65, subdivision 3, and 353.665, subdivision 8, paragraph (b), if applicable; or 
49.22 	(3) For a municipality other than a city of the first class with a population of more 
49.23 	than 300,000 in which both a police relief association exists and police retirement 
49.24 	coverage is provided in part by the public employees police and fire fund, the municipality 
49.25 	may elect at its option to transmit the total state aid to the treasurer of the relief association 
49.26 	as provided in clause (1), to use the total state aid to apply toward the municipality's 
49.27 	employer contribution to the public employees police and fire fund subject to all the 
49.28 	provisions set forth in clause (2), or to allot the total state aid proportionately to be 
49.29 	transmitted to the police relief association as provided in this subdivision and to apply 
49.30 	toward the municipality's employer contribution to the public employees police and fire 
49.31 	fund subject to the provisions of clause (2) on the basis of the respective number of active 
49.32 	full-time peace officers, as defined in section 69.011, subdivision 1, clause (g). 
49.33 	For a city of the first class with a population of more than 300,000, in addition, the 
49.34 	city may elect to allot the appropriate portion of the total police state aid to apply toward 
49.35 	the employer contribution of the city to the public employees police and fire fund based 
50.1 	on the covered salary of police officers covered by the fund each payroll period and to 
50.2 	transmit the balance to the police relief association; or
50.3 	(4) For a municipality in which police retirement coverage is provided in part by 
50.4 	the public employees police and fire fund and in part by a local police consolidation 
50.5 	account governed by chapter 353A and established before March 2, 1999, for which the 
50.6 	municipality declined merger under section 353.665, subdivision 1, or established after 
50.7 	March 1, 1999, the total police state aid must be applied towards the municipality's total 
50.8 	employer contribution to the public employees police and fire fund and to the local police 
50.9 	consolidation account under sections 353.65, subdivision 3, and 353A.09, subdivision 5. 
50.10 	(c) The county treasurer, upon receipt of the police state aid for the county, shall 
50.11 	apply the total state aid toward the county's employer contribution to the public employees 
50.12 	police and fire fund under section 353.65, subdivision 3. 
50.13 	(d) The designated Metropolitan Airports Commission official, upon receipt of the 
50.14 	police state aid for the Metropolitan Airports Commission, shall apply the total police 
50.15 	state aid first toward the commission's employer contribution for police officers to the 
50.16 	Minneapolis Employees Retirement Fund under section 422A.101, subdivision 2a, and, if 
50.17 	there is any amount of police state aid remaining, shall apply that remainder toward the 
50.18 	commission's employer contribution for police officers to the public employees police and 
50.19 	fire plan under section 353.65, subdivision 3. 
50.20 	(e) The police state aid apportioned to the Departments of Public Safety and Natural 
50.21 	Resources under section 69.021, subdivision 7a, is appropriated to the commissioner 
50.22 	of management and budget for transfer to the funds and accounts from which the 
50.23 	salaries of peace officers certified under section 69.011, subdivision 2a 2b, are paid. 
50.24 	The commissioner of revenue shall certify to the commissioners of public safety, 
50.25 	natural resources, and management and budget the amounts to be transferred from the 
50.26 	appropriation for police state aid. The commissioners of public safety and natural 
50.27 	resources shall certify to the commissioner of management and budget the amounts to be 
50.28 	credited to each of the funds and accounts from which the peace officers employed by their 
50.29 	respective departments are paid. Each commissioner shall allocate the police state aid first 
50.30 	for employer contributions for employees funded from the general fund and then for 
50.31 	employer contributions for employees funded from other funds. For peace officers whose 
50.32 	salaries are paid from the general fund, the amounts transferred from the appropriation 
50.33 	for police state aid must be canceled to the general fund. 

50.34 	Sec. 9. Minnesota Statutes 2008, section 126C.41, subdivision 3, is amended to read:
51.1 		Subd. 3.Retirement levies. (a) In 1991 and each year thereafter, a district to which 
51.2 	this subdivision applies may levy an additional amount required for contributions to the 
51.3 	general employees retirement plan of the Public Employees Retirement Association as the 
51.4 	successor of the Minneapolis Employees Retirement Fund as a result of the maximum 
51.5 	dollar amount limitation on state contributions to the fundthat plan imposed under 
51.6 	section 422A.101, subdivision 3. The additional levy must not exceed the most recent 
51.7 	amount certified by the board of the Minneapolis Employees Retirement Fundexecutive 
51.8 	director of the Public Employees Retirement Association as the district's share of the 
51.9 	contribution requirement in excess of the maximum state contribution under section 
51.10 	422A.101, subdivision 3.  
51.11 	(b) For taxes payable in 1994 and thereafter, Special School District No. 1, 
51.12 	Minneapolis, and Independent School District No. 625, St. Paul, may levy for the increase 
51.13 	in the employer retirement fund contributions, under Laws 1992, chapter 598, article 5, 
51.14 	section 1.
51.15 	(c) If the employer retirement fund contributions under section 354A.12, subdivision 
51.16 	2a, are increased for fiscal year 1994 or later fiscal years, Special School District No. 1, 
51.17 	Minneapolis, and Independent School District No. 625, St. Paul, may levy in payable 
51.18 	1994 or later an amount equal to the amount derived by applying the net increase in 
51.19 	the employer retirement fund contribution rate of the respective teacher retirement fund 
51.20 	association between fiscal year 1993 and the fiscal year beginning in the year after the 
51.21 	levy is certified to the total covered payroll of the applicable teacher retirement fund 
51.22 	association. If an applicable school district levies under this paragraph, they may not 
51.23 	levy under paragraph (b).  
51.24 	(d) In addition to the levy authorized under paragraph (c), Special School District 
51.25 	No. 1, Minneapolis, may also levy payable in 1997 or later an amount equal to the 
51.26 	contributions under section 423A.02, subdivision 3, and may also levy in payable 1994 
51.27 	or later an amount equal to the state aid contribution under section 354A.12, subdivision 
51.28 	3b. Independent School District No. 625, St. Paul, may levy payable in 1997 or later an 
51.29 	amount equal to the supplemental contributions under section 423A.02, subdivision 3.  

51.30 	Sec. 10. Minnesota Statutes 2008, section 256D.21, is amended to read:
51.31 	256D.21 CONTINUATION OF BENEFITS; FORMER MINNEAPOLIS 
51.32 	EMPLOYEES.
51.33 		Subdivision 1.Continuation of benefits. Each employee of the city of Minneapolis 
51.34 	who is transferred to and employed by the county under the provisions of section 256D.20
51.35 	and who is a contributing member of a retirement system organized under the provisions 
52.1 	of Minnesota Statutes 2008, chapter 422A, shall continue to beis a member of that system
52.2 	the MERF division of the Public Employees Retirement Association and is entitled to all 
52.3 	of the applicable benefits conferred therebyby and subject to all the restrictions of chapter 
52.4 	422A, unless the member applies to cancel membership within six months after January 
52.5 	1, 1974 section 353.50. 
52.6 		Subd. 2.City obligation. The cost to the public of that portion of the retirement 
52.7 	allowances or other benefits accrued while any such employee was in the service of the 
52.8 	city of Minneapolis shallmust remain an obligation of the city and a tax shallmust be 
52.9 	levied and collected by it to discharge its obligation as provided by chapter 422A in 
52.10 	section 353.50, subdivision 7.
52.11 		Subd. 3.County obligation. The cost to the public of the retirement allowances 
52.12 	or other benefits accruing to employees so transferred to and employed by the county 
52.13 	shall be is the obligation of and paid by the county at such time as the retirement board 
52.14 	shall fix and determine in accordance with chapter 422A in section 353.50, subdivision 
52.15 	7. The county shall pay to the municipalgeneral employees retirement fund an amount 
52.16 	certified to the county auditor of the county by the retirement board as the cost of the 
52.17 	retirement allowances and other benefits accruing and owing to such county employees of 
52.18 	the Public Employees Retirement Association those amounts. The cost to the public of 
52.19 	the retirement allowances as herein provided shallcoverage under this section must be 
52.20 	paid from the county revenue fund by the county auditor upon receipt of certification from 
52.21 	the retirement board as herein provided, and the county board is authorized to levy and 
52.22 	collect such taxes as may be necessary to pay such costs.

52.23 	Sec. 11. Minnesota Statutes 2009 Supplement, section 352.01, subdivision 2b, is 
52.24 	amended to read:
52.25 		Subd. 2b. Excluded employees. "State employee" does not include: 
52.26 	(1) students employed by the University of Minnesota, or the state colleges and 
52.27 	universities, unless approved for coverage by the Board of Regents of the University of 
52.28 	Minnesota or the Board of Trustees of the Minnesota State Colleges and Universities, 
52.29 	whichever is applicable; 
52.30 	(2) employees who are eligible for membership in the state Teachers Retirement 
52.31 	Association, except employees of the Department of Education who have chosen or may 
52.32 	choose to be covered by the general state employees retirement plan of the Minnesota 
52.33 	State Retirement System instead of the Teachers Retirement Association; 
52.34 	(3) employees of the University of Minnesota who are excluded from coverage by 
52.35 	action of the Board of Regents; 
53.1 	(4) officers and enlisted personnel in the National Guard and the naval militia who 
53.2 	are assigned to permanent peacetime duty and who under federal law are or are required to 
53.3 	be members of a federal retirement system; 
53.4 	(5) election officers; 
53.5 	(6) persons who are engaged in public work for the state but who are employed 
53.6 	by contractors when the performance of the contract is authorized by the legislature or 
53.7 	other competent authority; 
53.8 	(7) officers and employees of the senate, or of the house of representatives, or of a 
53.9 	legislative committee or commission who are temporarily employed; 
53.10 	(8) receivers, jurors, notaries public, and court employees who are not in the judicial 
53.11 	branch as defined in section 43A.02, subdivision 25, except referees and adjusters 
53.12 	employed by the Department of Labor and Industry; 
53.13 	(9) patient and inmate help in state charitable, penal, and correctional institutions 
53.14 	including the Minnesota Veterans Home; 
53.15 	(10) persons who are employed for professional services where the service is 
53.16 	incidental to their regular professional duties and whose compensation is paid on a per 
53.17 	diem basis; 
53.18 	(11) employees of the Sibley House Association; 
53.19 	(12) the members of any state board or commission who serve the state intermittently 
53.20 	and are paid on a per diem basis; the secretary, secretary-treasurer, and treasurer of those 
53.21 	boards if their compensation is $5,000 or less per year, or, if they are legally prohibited 
53.22 	from serving more than three years; and the board of managers of the State Agricultural 
53.23 	Society and its treasurer unless the treasurer is also its full-time secretary; 
53.24 	(13) state troopers and persons who are described in section 352B.011, subdivision 
53.25 	10, clauses (2) to (8); 
53.26 	(14) temporary employees of the Minnesota State Fair who are employed on or 
53.27 	after July 1 for a period not to extend beyond October 15 of that year; and persons who 
53.28 	are employed at any time by the state fair administration for special events held on the 
53.29 	fairgrounds; 
53.30 	(15) emergency employees who are in the classified service; except that if an 
53.31 	emergency employee, within the same pay period, becomes a provisional or probationary 
53.32 	employee on other than a temporary basis, the employee must be considered a "state 
53.33 	employee" retroactively to the beginning of the pay period; 
53.34 	(16) temporary employees in the classified service, and temporary employees in the 
53.35 	unclassified service who are appointed for a definite period of not more than six months 
53.36 	and who are employed less than six months in any one-year period; 
54.1 	(17) interns hired for six months or less and trainee employees, except those listed in 
54.2 	subdivision 2a, clause (8); 
54.3 	(18) persons whose compensation is paid on a fee basis or as an independent 
54.4 	contractor; 
54.5 	(19) state employees who are employed by the Board of Trustees of the Minnesota 
54.6 	State Colleges and Universities in unclassified positions enumerated in section 43A.08, 
54.7 	subdivision 1, clause (9); 
54.8 	(20) state employees who in any year have credit for 12 months service as teachers 
54.9 	in the public schools of the state and as teachers are members of the Teachers Retirement 
54.10 	Association or a retirement system in St. Paul, Minneapolis, or Duluth, except for 
54.11 	incidental employment as a state employee that is not covered by one of the teacher 
54.12 	retirement associations or systems; 
54.13 	(21) employees of the adjutant general who are employed on an unlimited 
54.14 	intermittent or temporary basis in the classified or unclassified service for the support of 
54.15 	Army and Air National Guard training facilities; 
54.16 	(22) chaplains and nuns who are excluded from coverage under the federal Old 
54.17 	Age, Survivors, Disability, and Health Insurance Program for the performance of service 
54.18 	as specified in United States Code, title 42, section 410(a)(8)(A), as amended, if no 
54.19 	irrevocable election of coverage has been made under section 3121(r) of the Internal 
54.20 	Revenue Code of 1986, as amended through December 31, 1992; 
54.21 	(23) examination monitors who are employed by departments, agencies, 
54.22 	commissions, and boards to conduct examinations required by law; 
54.23 	(24) persons who are appointed to serve as members of fact-finding commissions or 
54.24 	adjustment panels, arbitrators, or labor referees under chapter 179; 
54.25 	(25) temporary employees who are employed for limited periods under any state or 
54.26 	federal program for training or rehabilitation, including persons who are employed for 
54.27 	limited periods from areas of economic distress, but not including skilled and supervisory 
54.28 	personnel and persons having civil service status covered by the system; 
54.29 	(26) full-time students who are employed by the Minnesota Historical Society 
54.30 	intermittently during part of the year and full-time during the summer months; 
54.31 	(27) temporary employees who are appointed for not more than six months, of 
54.32 	the Metropolitan Council and of any of its statutory boards, if the board members are 
54.33 	appointed by the Metropolitan Council; 
54.34 	(28) persons who are employed in positions designated by the Department of 
54.35 	Management and Budget as student workers; 
55.1 	(29) members of trades who are employed by the successor to the Metropolitan 
55.2 	Waste Control Commission, who have trade union pension plan coverage under a 
55.3 	collective bargaining agreement, and who are first employed after June 1, 1977; 
55.4 	(30) off-duty peace officers while employed by the Metropolitan Council; 
55.5 	(31) persons who are employed as full-time police officers by the Metropolitan 
55.6 	Council and as police officers are members of the public employees police and fire fund; 
55.7 	(32) persons who are employed as full-time firefighters by the Department of Military 
55.8 	Affairs and as firefighters are members of the public employees police and fire fund; 
55.9 	(33) foreign citizens with a work permit of less than three years, or an H-1b/JV visa 
55.10 	valid for less than three years of employment, unless notice of extension is supplied which 
55.11 	allows them to work for three or more years as of the date the extension is granted, in 
55.12 	which case they are eligible for coverage from the date extended; and 
55.13 	(34) persons who are employed by the Board of Trustees of the Minnesota State 
55.14 	Colleges and Universities and who elected to remain members of the Public Employees 
55.15 	Retirement Association or of the MERF division of the Public Employees Retirement 
55.16 	Association as the successor of the Minneapolis Employees Retirement Fund, whichever 
55.17 	applies, under Minnesota Statutes 1994, section 136C.75. 

55.18 	Sec. 12. Minnesota Statutes 2008, section 353.03, subdivision 1, is amended to read:
55.19 		Subdivision 1.Management; composition; election. (a) The management of the 
55.20 	public employees retirement fund Public Employees Retirement Association is vested in 
55.21 	an 11-member board of trustees consisting of ten members and the state auditor. The 
55.22 	state auditor may designate a deputy auditor with expertise in pension matters as the 
55.23 	auditor's representative on the board. The governor shall appoint five trustees to four-year 
55.24 	terms, one of whom shall be designated to represent school boards, one to represent 
55.25 	cities, one to represent counties, one who is a retired annuitant, and one who is a public 
55.26 	member knowledgeable in pension matters. The membership of the association, including 
55.27 	recipients of retirement annuities and disability and survivor benefits, shall elect five 
55.28 	trustees for terms of four years, one of whom must be a member of the police and fire fund 
55.29 	and one of whom must be a former member who met the definition of public employee 
55.30 	under section 353.01, subdivisions 2 and 2a, for at least five years prior to terminating 
55.31 	membership or a member who receives a disability benefit. Terms expire on January 31 of 
55.32 	the fourth year, and positions are vacant until newly elected members are seated. Except 
55.33 	as provided in this subdivision, trustees elected by the membership of the association must 
55.34 	be public employees and members of the association. 
56.1 	(b) For seven days beginning October 1 of each year preceding a year in which 
56.2 	an election is held, the association shall accept at its office filings in person or by mail 
56.3 	of candidates for the board of trustees. A candidate shall submit at the time of filing a 
56.4 	nominating petition signed by 25 or more members of the association. No name may 
56.5 	be withdrawn from nomination by the nominee after October 15. At the request of a 
56.6 	candidate for an elected position on the board of trustees, the board shall mail a statement 
56.7 	of up to 300 words prepared by the candidate to all persons eligible to vote in the election 
56.8 	of the candidate. The board may adopt policies, subject to review and approval by the 
56.9 	secretary of state under paragraph (e), to govern the form and length of these statements, 
56.10 	timing of mailings, and deadlines for submitting materials to be mailed. The secretary 
56.11 	of state shall resolve disputes between the board and a candidate concerning application 
56.12 	of these policies to a particular statement. 
56.13 	(c) By January 10 of each year in which elections are to be held, the board shall 
56.14 	distribute by mail to the members ballots listing the candidates. No member may vote for 
56.15 	more than one candidate for each board position to be filled. A ballot indicating a vote for 
56.16 	more than one person for any position is void. No special marking may be used on the 
56.17 	ballot to indicate incumbents. Ballots mailed to the association must be postmarked no 
56.18 	later than January 31. The ballot envelopes must be so designated and the ballots must be 
56.19 	counted in a manner that ensures that each vote is secret.
56.20 	(d) A candidate who receives contributions or makes expenditures in excess of $100, 
56.21 	or has given implicit or explicit consent for any other person to receive contributions or 
56.22 	make expenditures in excess of $100 for the purpose of bringing about the candidate's 
56.23 	election, shall file a report with the campaign finance and public disclosure board 
56.24 	disclosing the source and amount of all contributions to the candidate's campaign. The 
56.25 	campaign finance and public disclosure board shall prescribe forms governing these 
56.26 	disclosures. Expenditures and contributions have the meaning defined in section 10A.01. 
56.27 	These terms do not include the mailing made by the association board on behalf of the 
56.28 	candidate. A candidate shall file a report within 30 days from the day that the results of 
56.29 	the election are announced. The Campaign Finance and Public Disclosure Board shall 
56.30 	maintain these reports and make them available for public inspection in the same manner 
56.31 	as the board maintains and makes available other reports filed with it. 
56.32 	(e) The secretary of state shall review and approve the procedures defined by the 
56.33 	board of trustees for conducting the elections specified in this subdivision, including 
56.34 	board policies adopted under paragraph (b). 
56.35 	(f) The board of trustees and the executive director shall undertake their activities 
56.36 	consistent with chapter 356A.

57.1 	Sec. 13. Minnesota Statutes 2008, section 353.71, subdivision 4, is amended to read:
57.2 		Subd. 4.Repayment of refund. Any person who has received a refund from the 
57.3 	public employees retirement fund Public Employees Retirement Association and who is 
57.4 	a member of any public retirement system referred to in subdivision 1, may repay such 
57.5 	refund to the public employees retirement fund Public Employees Retirement Association
57.6 	as provided in section 353.35. 

57.7 	Sec. 14. Minnesota Statutes 2008, section 353.86, subdivision 1, is amended to read:
57.8 		Subdivision 1.Participation. Volunteer ambulance service personnel, as defined 
57.9 	in section 353.01, subdivision 35, who are or become members of and participants in 
57.10 	the public general employees retirement fund or the public employees police and fire 
57.11 	fund before July 1, 2002, and make contributions to either of those funds based on 
57.12 	compensation for service other than volunteer ambulance service may elect to participate 
57.13 	in that same fund with respect to compensation received for volunteer ambulance service, 
57.14 	provided that the volunteer ambulance service is not credited to another public or private 
57.15 	pension plan including the public employees retirement plan established by chapter 
57.16 	353D and provided further that the volunteer ambulance service is rendered for the same 
57.17 	governmental unit for which the nonvolunteer ambulance service is rendered.  

57.18 	Sec. 15. Minnesota Statutes 2008, section 353.86, subdivision 2, is amended to read:
57.19 		Subd. 2.Election. Volunteer ambulance service personnel to whom subdivision 
57.20 	1 applies may exercise the election authorized under subdivision 1 within the earlier of 
57.21 	the one-year period beginning on July 1, 1989, and extending through June 30, 1990, or 
57.22 	the one-year period commencing on the first day of the first month following the start of 
57.23 	employment in a position covered by the public general employees retirement fund or the 
57.24 	public employees police and fire fund. The election must be exercised by filing a written 
57.25 	notice on a form prescribed by the executive director of the association.

57.26 	Sec. 16. Minnesota Statutes 2008, section 353.87, subdivision 1, is amended to read:
57.27 		Subdivision 1.Participation. Except as provided in subdivision 2, a volunteer 
57.28 	firefighter, as defined in section 353.01, subdivision 36, who, on June 30, 1989, was 
57.29 	a member of, and a participant in, the public general employees retirement fund or the 
57.30 	public employees police and fire fund and was making contributions to either of those 
57.31 	funds based, at least in part, on compensation for services performed as a volunteer 
57.32 	firefighter shall continue as a member of, and a participant in, the public general
58.1 	employees retirement fund or the public employees police and fire fund and compensation 
58.2 	for services performed as a volunteer firefighter shall must be considered salary. 

58.3 	Sec. 17. Minnesota Statutes 2008, section 353.87, subdivision 2, is amended to read:
58.4 		Subd. 2.Option. A volunteer firefighter to whom subdivision 1 applies has the 
58.5 	option to terminate membership and future participation in the public general employees 
58.6 	retirement fund or the public employees police and fire fund upon filing of a written notice 
58.7 	of intention to terminate participation. Notice must be given on a form prescribed by the 
58.8 	executive director of the association and must be filed in the offices of the association not 
58.9 	later than June 30, 1990.

58.10 	Sec. 18. Minnesota Statutes 2008, section 353.88, is amended to read:
58.11 	353.88 PENALTY FOR MEMBERSHIP MISCERTIFICATIONS AND 
58.12 	CERTIFICATION FAILURES.
58.13 	(a) If the board of trustees of the Public Employees Retirement Association, 
58.14 	upon the recommendation of the executive director, determines that a governmental 
58.15 	subdivision has certified a public employee for membership in the public employees 
58.16 	police and fire retirement plan when the public employee was not eligible for that 
58.17 	retirement plan coverage, the public employee must be covered by the correct retirement 
58.18 	plan for subsequent service, the public employee retains the coverage for the period of 
58.19 	the misclassification, and the governmental subdivision shall pay in a lump sum the 
58.20 	difference in the actuarial present value of the retirement annuities to which the public 
58.21 	employee would have been entitled if the public employee was properly classified. The 
58.22 	governmental subdivision payment is payable within 30 days of the board's determination. 
58.23 	If unpaid, it must be collected under section 353.28. The lump-sum payment must be 
58.24 	deposited in the public general employees retirement fund. 
58.25 	(b) If the executive director of the Public Employees Retirement Association 
58.26 	determines that a governmental subdivision has failed to certify a person for retirement 
58.27 	plan membership and coverage under this chapter, in addition to the procedures under 
58.28 	section 353.27, subdivision 4, 9, 10, 11, 12, 12a, or 12b, the director shall charge a fine of 
58.29 	$25 for each membership certification failure. 

58.30 	Sec. 19. Minnesota Statutes 2008, section 354.71, is amended to read:
58.31 	354.71 MINNEAPOLIS EMPLOYEES RETIREMENT FUND STATE AID 
58.32 	REDEDICATED.
59.1 		Subdivision 1.Appropriation. The positive difference, if any, between the 
59.2 	actual state aid paidpayable to the MERF division account of the Public Employees 
59.3 	Retirement Association with respect to the former Minneapolis Employees Retirement 
59.4 	Fund under section 422A.101, subdivision 3, and $8,065,000 annually is appropriated 
59.5 	from the general fund to the commissioner of management and budget for deposit in 
59.6 	the Teachers Retirement Association to offset all or a portion of the current and future
59.7 	unfunded actuarial accrued liability of the former Minneapolis Teachers Retirement 
59.8 	Fund Association.
59.9 		Subd. 2.Financial requirements. The appropriation in subdivision 1 is available to 
59.10 	the extent that financial requirements ofwith respect to the MERF division of the Public 
59.11 	Employees Retirement Association as the successor of the former Minneapolis Employees 
59.12 	Retirement Fund under section 422A.101, subdivision 3,353.50 have been satisfied.

59.13 	Sec. 20. Minnesota Statutes 2008, section 354A.011, subdivision 27, is amended to 
59.14 	read:
59.15 		Subd. 27.Teacher. (a) "Teacher" means any person who renders service for a public 
59.16 	school district, other than a charter school, located in the corporate limits of Duluth or 
59.17 	St. Paul, as any of the following:
59.18 	(1) a full-time employee in a position for which a valid license from the state 
59.19 	Department of Education is required;
59.20 	(2) an employee of the teachers retirement fund association located in the city of 
59.21 	the first class unless the employee has exercised the option pursuant to Laws 1955, 
59.22 	chapter 10, section 1, to retain membership in the Minneapolis Employees Retirement 
59.23 	Fund established pursuant to chapter 422A;
59.24 	(3) a part-time employee in a position for which a valid license from the state 
59.25 	Department of Education is required; or
59.26 	(4) a part-time employee in a position for which a valid license from the state 
59.27 	Department of Education is required who also renders other nonteaching services for the 
59.28 	school district, unless the board of trustees of the teachers retirement fund association 
59.29 	determines that the combined employment is on the whole so substantially dissimilar to 
59.30 	teaching service that the service may not be covered by the association.
59.31 	(b) The term does not mean any person who renders service in the school district 
59.32 	as any of the following:
59.33 	(1) an independent contractor or the employee of an independent contractor;
60.1 	(2) an employee who is a full-time teacher covered by the Teachers Retirement 
60.2 	Association or by another teachers retirement fund association established pursuant to this 
60.3 	chapter or chapter 354;
60.4 	(3) an employee exempt from licensure pursuant to section 122A.30; 
60.5 	(4) an employee who is a teacher in a technical college located in a city of the first 
60.6 	class unless the person elects coverage by the applicable first class city teacher retirement 
60.7 	fund association under section 354B.21, subdivision 2; 
60.8 	(5) a teacher employed by a charter school, irrespective of the location of the 
60.9 	school; or
60.10 	(6) an employee who is a part-time teacher in a technical college in a city of the first 
60.11 	class and who has elected coverage by the applicable first class city teacher retirement 
60.12 	fund association under section 354B.21, subdivision 2, but (i) the teaching service is 
60.13 	incidental to the regular nonteaching occupation of the person; (ii) the applicable technical 
60.14 	college stipulates annually in advance that the part-time teaching service will not exceed 
60.15 	300 hours in a fiscal year; and (iii) the part-time teaching actually does not exceed 300 
60.16 	hours in the fiscal year to which the certification applies. 

60.17 	Sec. 21. Minnesota Statutes 2008, section 354A.39, is amended to read:
60.18 	354A.39 SERVICE IN OTHER PUBLIC RETIREMENT FUNDS; ANNUITY.
60.19 	Any person who has been a member of the Minnesota State Retirement System, the 
60.20 	Public Employees Retirement Association including the Public Employees Retirement 
60.21 	Association Police and Fire Fund, the Teachers Retirement Association, the Minnesota 
60.22 	State Patrol Retirement Association, the legislators retirement plan, the constitutional 
60.23 	officers retirement plan, the Minneapolis Employees Retirement Fund, the Duluth 
60.24 	Teachers Retirement Fund Association new law coordinated program, the St. Paul 
60.25 	Teachers Retirement Fund Association coordinated program, or any other public employee 
60.26 	retirement system in the state of Minnesota having a like provision but excluding all other 
60.27 	funds providing retirement benefits for police officers or firefighters shall beis entitled 
60.28 	when qualified, to an annuity from each fund if the person's total allowable service in all 
60.29 	of the funds or in any two or more of the funds totals three or more years, provided that 
60.30 	no portion of the allowable service upon which the retirement annuity from one fund is 
60.31 	based is used again in the computation for a retirement annuity from another fund and 
60.32 	provided further that the person has not taken a refund from any of funds or associations 
60.33 	since the person's membership in the fund or association has terminated. The annuity from 
60.34 	each fund or association shall must be determined by the appropriate provisions of the law 
60.35 	governing each fund or association, except that the requirement that a person must have at 
61.1 	least three years of allowable service in the respective fund or association shall does not 
61.2 	apply for the purposes of this section, provided that the aggregate service in two or more 
61.3 	of these funds equals three or more years.

61.4 	Sec. 22. Minnesota Statutes 2008, section 355.095, subdivision 1, is amended to read:
61.5 		Subdivision 1.Agreement. (a) The director, on behalf of the state, its political 
61.6 	subdivisions, and its other governmental employers, is authorized to enter into an 
61.7 	agreement with the Secretary of Health and Human Services to extend the provisions of 
61.8 	United States Code, title 42, section 426, 426-1, and 1395c, to the employees in paragraph 
61.9 	(b) who meet the requirements of United States Code, title 42, section 418(v)(2) and who 
61.10 	do not have coverage by the federal old age, survivors, and disability insurance program 
61.11 	for that employment under any previous modification of the agreement or previous 
61.12 	Medicare referendum.
61.13 	(b) The applicable employees are:
61.14 	(1) employees who are members of one of the retirement plans in Minnesota Statutes 
61.15 	2008, section 356.30, subdivision 3, except clauses (4) and (8), based on continuous 
61.16 	employment since March 31, 1986; and
61.17 	(2) employees of a special authority or district who have been continuously 
61.18 	employed by the special authority or district since March 31, 1986.

61.19 	Sec. 23. Minnesota Statutes 2009 Supplement, section 356.20, subdivision 2, is 
61.20 	amended to read:
61.21 		Subd. 2.Covered public pension plans and funds. This section applies to the 
61.22 	following public pension plans:
61.23 	(1) the general state employees retirement plan of the Minnesota State Retirement 
61.24 	System;
61.25 	(2) the general employees retirement plan of the Public Employees Retirement 
61.26 	Association;
61.27 	(3) the Teachers Retirement Association;
61.28 	(4) the State Patrol retirement plan;
61.29 	(5) the St. Paul Teachers Retirement Fund Association;
61.30 	(6) the Duluth Teachers Retirement Fund Association;
61.31 	(7) the Minneapolis Employees Retirement Fund;
61.32 	(8)(7) the University of Minnesota faculty retirement plan;
61.33 	(9)(8) the University of Minnesota faculty supplemental retirement plan;
61.34 	(10)(9) the judges retirement fund;
62.1 	(11)(10) a police or firefighter's relief association specified or described in section 
62.2 	69.77, subdivision 1a;
62.3 	(12)(11) a volunteer firefighter relief association governed by section 69.771, 
62.4 	subdivision 1; 
62.5 	(13)(12) the public employees police and fire plan of the Public Employees 
62.6 	Retirement Association;
62.7 	(14)(13) the correctional state employees retirement plan of the Minnesota State 
62.8 	Retirement System; 
62.9 	(15)(14) the local government correctional service retirement plan of the Public 
62.10 	Employees Retirement Association; and
62.11 	(16)(15) the voluntary statewide lump-sum volunteer firefighter retirement plan.

62.12 	Sec. 24. Minnesota Statutes 2008, section 356.214, subdivision 1, is amended to read:
62.13 		Subdivision 1.Actuary retention. (a) The governing board or managing or 
62.14 	administrative official of each public pension plan and retirement fund or plan enumerated 
62.15 	in paragraph (b) shall contract with an established actuarial consulting firm to conduct 
62.16 	annual actuarial valuations and related services. The principal from the actuarial 
62.17 	consulting firm on the contract must be an approved actuary under section 356.215, 
62.18 	subdivision 1, paragraph (c). 
62.19 	(b) Actuarial services must include the preparation of actuarial valuations and 
62.20 	related actuarial work for the following retirement plans:
62.21 	(1) the teachers retirement plan, Teachers Retirement Association;
62.22 	(2) the general state employees retirement plan, Minnesota State Retirement System;
62.23 	(3) the correctional employees retirement plan, Minnesota State Retirement System;
62.24 	(4) the State Patrol retirement plan, Minnesota State Retirement System;
62.25 	(5) the judges retirement plan, Minnesota State Retirement System;
62.26 	(6) the Minneapolis employees retirement plan, Minneapolis Employees Retirement 
62.27 	Fund;
62.28 	(7)(6) the publicgeneral employees retirement plan, Public Employees Retirement 
62.29 	Association, including the MERF division;
62.30 	(8)(7) the public employees police and fire plan, Public Employees Retirement 
62.31 	Association;
62.32 	(9)(8) the Duluth teachers retirement plan, Duluth Teachers Retirement Fund 
62.33 	Association;
62.34 	(10)(9) the St. Paul teachers retirement plan, St. Paul Teachers Retirement Fund 
62.35 	Association;
63.1 	(11)(10) the legislators retirement plan, Minnesota State Retirement System;
63.2 	(12)(11) the elective state officers retirement plan, Minnesota State Retirement 
63.3 	System; and
63.4 	(13)(12) local government correctional service retirement plan, Public Employees 
63.5 	Retirement Association.
63.6 	(c) The contracts must require completion of the annual actuarial valuation 
63.7 	calculations on a fiscal year basis, with the contents of the actuarial valuation calculations 
63.8 	as specified in section 356.215, and in conformity with the standards for actuarial work 
63.9 	adopted by the Legislative Commission on Pensions and Retirement. 
63.10 	The contracts must require completion of annual experience data collection and 
63.11 	processing and a quadrennial published experience study for the plans listed in paragraph 
63.12 	(b), clauses (1), (2), and (7) (6), as provided for in the standards for actuarial work 
63.13 	adopted by the commission. The experience data collection, processing, and analysis 
63.14 	must evaluate the following:
63.15 	(1) individual salary progression;
63.16 	(2) the rate of return on investments based on the current asset value;
63.17 	(3) payroll growth;
63.18 	(4) mortality;
63.19 	(5) retirement age;
63.20 	(6) withdrawal; and
63.21 	(7) disablement.
63.22 	(d) The actuary shall annually prepare a report to the governing or managing board 
63.23 	or administrative official and the legislature, summarizing the results of the actuarial 
63.24 	valuation calculations. The actuary shall include with the report any recommendations 
63.25 	concerning the appropriateness of the support rates to achieve proper funding of 
63.26 	the retirement plans by the required funding dates. The actuary shall, as part of the 
63.27 	quadrennial experience study, include recommendations on the appropriateness of the 
63.28 	actuarial valuation assumptions required for evaluation in the study.
63.29 	(e) If the actuarial gain and loss analysis in the actuarial valuation calculations 
63.30 	indicates a persistent pattern of sizable gains or losses, the governing or managing board 
63.31 	or administrative official shall direct the actuary to prepare a special experience study for a 
63.32 	plan listed in paragraph (b), clause (3), (4), (5), (6) (7), (8), (9), (10), (11), or (12), or (13),
63.33 	in the manner provided for in the standards for actuarial work adopted by the commission.

63.34 	Sec. 25. Minnesota Statutes 2008, section 356.30, subdivision 3, is amended to read:
63.35 		Subd. 3.Covered plans. This section applies to the following retirement plans:
64.1 	(1) the general state employees retirement plan of the Minnesota State Retirement 
64.2 	System, established under chapter 352;
64.3 	(2) the correctional state employees retirement plan of the Minnesota State 
64.4 	Retirement System, established under chapter 352;
64.5 	(3) the unclassified employees retirement program, established under chapter 352D;
64.6 	(4) the State Patrol retirement plan, established under chapter 352B;
64.7 	(5) the legislators retirement plan, established under chapter 3A;
64.8 	(6) the elective state officers retirement plan, established under chapter 352C;
64.9 	(7) the general employees retirement plan of the Public Employees Retirement 
64.10 	Association, established under chapter 353, including the MERF division of the Public 
64.11 	Employees Retirement Association;
64.12 	(8) the public employees police and fire retirement plan of the Public Employees 
64.13 	Retirement Association, established under chapter 353;
64.14 	(9) the local government correctional service retirement plan of the Public 
64.15 	Employees Retirement Association, established under chapter 353E;
64.16 	(10) the Teachers Retirement Association, established under chapter 354;
64.17 	(11) the Minneapolis Employees Retirement Fund, established under chapter 422A;
64.18 	(12)(11) the St. Paul Teachers Retirement Fund Association, established under 
64.19 	chapter 354A;
64.20 	(13)(12) the Duluth Teachers Retirement Fund Association, established under 
64.21 	chapter 354A; and
64.22 	(14)(13) the judges retirement fund, established by chapter 490. 

64.23 	Sec. 26. Minnesota Statutes 2008, section 356.302, subdivision 1, is amended to read:
64.24 		Subdivision 1.Definitions. (a) The terms used in this section are defined in this 
64.25 	subdivision.
64.26 	(b) "Average salary" means the highest average of covered salary for the appropriate 
64.27 	period of credited service that is required for the calculation of a disability benefit by 
64.28 	the covered retirement plan and that is drawn from any period of credited service and 
64.29 	successive years of covered salary in a covered retirement plan.
64.30 	(c) "Covered retirement plan" or "plan" means a retirement plan listed in subdivision 
64.31 	7.
64.32 	(d) "Duty-related" means a disabling illness or injury that occurred while the person 
64.33 	was actively engaged in employment duties or that arose out of the person's active 
64.34 	employment duties.
65.1 	(e) "General employee retirement plan" means a covered retirement plan listed in 
65.2 	subdivision 7, clauses (1) to (8)(6) and (13) (12).
65.3 	(f) "Occupationally disabled" means the condition of having a medically 
65.4 	determinable physical or mental impairment that makes a person unable to satisfactorily 
65.5 	perform the minimum requirements of the person's employment position or a substantially 
65.6 	similar employment position.
65.7 	(g) "Public safety employee retirement plan" means a covered retirement plan listed 
65.8 	in subdivision 7, clauses (9) (7)  to (12) (11).
65.9 	(h) "Totally and permanently disabled" means the condition of having a medically 
65.10 	determinable physical or mental impairment that makes a person unable to engage in any 
65.11 	substantial gainful activity and that is expected to continue or has continued for a period 
65.12 	of at least one year or that is expected to result directly in the person's death.

65.13 	Sec. 27. Minnesota Statutes 2008, section 356.302, subdivision 7, is amended to read:
65.14 		Subd. 7.Covered retirement plans. This section applies to the following 
65.15 	retirement plans:
65.16 	(1) the general state employees retirement plan of the Minnesota State Retirement 
65.17 	System, established by chapter 352;
65.18 	(2) the unclassified state employees retirement program of the Minnesota State 
65.19 	Retirement System, established by chapter 352D;
65.20 	(3) the general employees retirement plan of the Public Employees Retirement 
65.21 	Association, established by chapter 353, including the MERF division of the Public 
65.22 	Employees Retirement Association;
65.23 	(4) the Teachers Retirement Association, established by chapter 354;
65.24 	(5) the Duluth Teachers Retirement Fund Association, established by chapter 354A;
65.25 	(6) the St. Paul Teachers Retirement Fund Association, established by chapter 354A;
65.26 	(7) the Minneapolis Employees Retirement Fund, established by chapter 422A;
65.27 	(8)(7) the state correctional employees retirement plan of the Minnesota State 
65.28 	Retirement System, established by chapter 352;
65.29 	(9)(8) the State Patrol retirement plan, established by chapter 352B;
65.30 	(10)(9) the public employees police and fire plan of the Public Employees 
65.31 	Retirement Association, established by chapter 353;
65.32 	(11)(10) the local government correctional service retirement plan of the Public 
65.33 	Employees Retirement Association, established by chapter 353E; and
65.34 	(12)(11) the judges retirement plan, established by chapter 490. 

66.1 	Sec. 28. Minnesota Statutes 2008, section 356.303, subdivision 4, is amended to read:
66.2 		Subd. 4.Covered retirement plans. This section applies to the following 
66.3 	retirement plans:
66.4 	(1) the legislators retirement plan, established by chapter 3A;
66.5 	(2) the general state employees retirement plan of the Minnesota State Retirement 
66.6 	System, established by chapter 352;
66.7 	(3) the correctional state employees retirement plan of the Minnesota State 
66.8 	Retirement System, established by chapter 352;
66.9 	(4) the State Patrol retirement plan, established by chapter 352B;
66.10 	(5) the elective state officers retirement plan, established by chapter 352C;
66.11 	(6) the unclassified state employees retirement program, established by chapter 
66.12 	352D;
66.13 	(7) the general employees retirement plan of the Public Employees Retirement 
66.14 	Association, established by chapter 353, including the MERF division of the Public 
66.15 	Employees Retirement Association;
66.16 	(8) the public employees police and fire plan of the Public Employees Retirement 
66.17 	Association, established by chapter 353;
66.18 	(9) the local government correctional service retirement plan of the Public 
66.19 	Employees Retirement Association, established by chapter 353E;
66.20 	(10) the Teachers Retirement Association, established by chapter 354;
66.21 	(11) the Duluth Teachers Retirement Fund Association, established by chapter 354A;
66.22 	(12) the St. Paul Teachers Retirement Fund Association, established by chapter 
66.23 	354A; and
66.24 	(13) the Minneapolis Employees Retirement Fund, established by chapter 422A; and
66.25 	(14)(13) the judges retirement fund, established by chapter 490. 

66.26 	Sec. 29. Minnesota Statutes 2009 Supplement, section 356.32, subdivision 2, is 
66.27 	amended to read:
66.28 		Subd. 2.Covered retirement plans. The provisions of this section apply to the 
66.29 	following retirement plans:
66.30 	(1) the general state employees retirement plan of the Minnesota State Retirement 
66.31 	System, established under chapter 352;
66.32 	(2) the correctional state employees retirement plan of the Minnesota State 
66.33 	Retirement System, established under chapter 352;
66.34 	(3) the State Patrol retirement plan, established under chapter 352B;
67.1 	(4) the general employees retirement plan of the Public Employees Retirement 
67.2 	Association, established under chapter 353, including the MERF division of the Public 
67.3 	Employees Retirement Association;
67.4 	(5) the public employees police and fire plan of the Public Employees Retirement 
67.5 	Association, established under chapter 353;
67.6 	(6) the Teachers Retirement Association, established under chapter 354;
67.7 	(7) the Minneapolis Employees Retirement Fund, established under chapter 422A;
67.8 	(8)(7) the Duluth Teachers Retirement Fund Association, established under chapter 
67.9 	354A; and
67.10 	(9)(8) the St. Paul Teachers Retirement Fund Association, established under chapter 
67.11 	354A.

67.12 	Sec. 30. Minnesota Statutes 2009 Supplement, section 356.401, subdivision 3, is 
67.13 	amended to read:
67.14 		Subd. 3.Covered retirement plans. The provisions of this section apply to the 
67.15 	following retirement plans:
67.16 	(1) the legislators retirement plan, established by chapter 3A;
67.17 	(2) the general state employees retirement plan of the Minnesota State Retirement 
67.18 	System, established by chapter 352;
67.19 	(3) the correctional state employees retirement plan of the Minnesota State 
67.20 	Retirement System, established by chapter 352;
67.21 	(4) the State Patrol retirement plan, established by chapter 352B;
67.22 	(5) the elective state officers retirement plan, established by chapter 352C;
67.23 	(6) the unclassified state employees retirement program, established by chapter 
67.24 	352D;
67.25 	(7) the general employees retirement plan of the Public Employees Retirement 
67.26 	Association, established by chapter 353, including the MERF division of the Public 
67.27 	Employees Retirement Association;
67.28 	(8) the public employees police and fire plan of the Public Employees Retirement 
67.29 	Association, established by chapter 353;
67.30 	(9) the public employees defined contribution plan, established by chapter 353D;
67.31 	(10) the local government correctional service retirement plan of the Public 
67.32 	Employees Retirement Association, established by chapter 353E;
67.33 	(11) the voluntary statewide lump-sum volunteer firefighter retirement plan, 
67.34 	established by chapter 353G;
67.35 	(12) the Teachers Retirement Association, established by chapter 354;
68.1 	(13) the Duluth Teachers Retirement Fund Association, established by chapter 354A;
68.2 	(14) the St. Paul Teachers Retirement Fund Association, established by chapter 
68.3 	354A;
68.4 	(15) the individual retirement account plan, established by chapter 354B;
68.5 	(16) the higher education supplemental retirement plan, established by chapter 354C;
68.6 	(17) the Minneapolis Employees Retirement Fund, established by chapter 422A;
68.7 	(18)(17) the Minneapolis Police Relief Association, established by chapter 423B;
68.8 	(19)(18) the Minneapolis Firefighters Relief Association, established by chapter 
68.9 	423C; and
68.10 	(20)(19) the judges retirement fund, established by chapter 490.

68.11 	Sec. 31. Minnesota Statutes 2008, section 356.407, subdivision 2, is amended to read:
68.12 		Subd. 2.Covered funds. The provisions of this section apply to the following 
68.13 	retirement funds:
68.14 	(1) the general employees retirement plan of the Public Employees Retirement 
68.15 	Association established under chapter 353, including the MERF division of the Public 
68.16 	Employees Retirement Association;
68.17 	(2) the public employees police and fire plan of the Public Employees Retirement 
68.18 	Association established under chapter 353;
68.19 	(3) the State Patrol retirement plan established under chapter 352B;
68.20 	(4) the legislators retirement plan established under chapter 3A;
68.21 	(5) the elective state officers retirement plan established under chapter 352C; and
68.22 	(6) the Teachers Retirement Association established under chapter 354; and.
68.23 	(7) the Minneapolis Employees Retirement Fund established under chapter 422A.

68.24 	Sec. 32. Minnesota Statutes 2009 Supplement, section 356.415, subdivision 2, is 
68.25 	amended to read:
68.26 		Subd. 2.Covered retirement plans. The provisions of this section apply to the 
68.27 	following retirement plans:
68.28 	(1) the legislators retirement plan established under chapter 3A;
68.29 	(2) the correctional state employees retirement plan of the Minnesota State 
68.30 	Retirement System established under chapter 352;
68.31 	(3) the general state employees retirement plan of the Minnesota State Retirement 
68.32 	System established under chapter 352;
68.33 	(4) the State Patrol retirement plan established under chapter 352B;
68.34 	(5) the elective state officers retirement plan established under chapter 352C;
69.1 	(6) the general employees retirement plan of the Public Employees Retirement 
69.2 	Association established under chapter 353, including the MERF division of the Public 
69.3 	Employees Retirement Association;
69.4 	(7) the public employees police and fire retirement plan of the Public Employees 
69.5 	Retirement Association established under chapter 353;
69.6 	(8) the local government correctional employees retirement plan of the Public 
69.7 	Employees Retirement Association established under chapter 353E;
69.8 	(9) the teachers retirement plan established under chapter 354; and
69.9 	(10) the judges retirement plan established under chapter 490.

69.10 	Sec. 33. Minnesota Statutes 2008, section 356.431, subdivision 1, is amended to read:
69.11 		Subdivision 1.Lump-sum postretirement payment conversion. For benefits paid 
69.12 	after December 31, 2001, to eligible persons under sectionssection 356.42and 356.43, 
69.13 	the amount of the most recent lump-sum benefit payable to an eligible recipient under 
69.14 	sectionssection 356.42and 356.43 must be divided by 12. The result must be added to 
69.15 	the monthly annuity or benefit otherwise payable to an eligible recipient, must become a 
69.16 	permanent part of the benefit recipient's pension, and must be included in any pension 
69.17 	benefit subject to future increases.

69.18 	Sec. 34. Minnesota Statutes 2008, section 356.465, subdivision 3, is amended to read:
69.19 		Subd. 3.Covered retirement plans. The provisions of this section apply to the 
69.20 	following retirement plans:
69.21 	(1) the general state employees retirement plan of the Minnesota State Retirement 
69.22 	System established under chapter 352;
69.23 	(2) the correctional state employees retirement plan of the Minnesota State 
69.24 	Retirement System established under chapter 352;
69.25 	(3) the State Patrol retirement plan established under chapter 352B;
69.26 	(4) the legislators retirement plan established under chapter 3A;
69.27 	(5) the judges retirement plan established under chapter 490;
69.28 	(6) the general employees retirement plan of the Public Employees Retirement 
69.29 	Association established under chapter 353, including the MERF division of the Public 
69.30 	Employees Retirement Association;
69.31 	(7) the public employees police and fire plan of the Public Employees Retirement 
69.32 	Association established under chapter 353;
69.33 	(8) the teachers retirement plan established under chapter 354;
70.1 	(9) the Duluth Teachers Retirement Fund Association established under chapter 
70.2 	354A;
70.3 	(10) the St. Paul Teachers Retirement Fund Association established under chapter 
70.4 	354A;
70.5 	(11) the Minneapolis Employees Retirement Fund established under chapter 422A;
70.6 	(12)(11) the Minneapolis Firefighters Relief Association established under chapter 
70.7 	423C;
70.8 	(13)(12) the Minneapolis Police Relief Association established under chapter 
70.9 	423B; and
70.10 	(14)(13) the local government correctional service retirement plan of the Public 
70.11 	Employees Retirement Association established under chapter 353E.

70.12 	Sec. 35. Minnesota Statutes 2008, section 356.64, is amended to read:
70.13 	356.64 REAL ESTATE INVESTMENTS.
70.14 	(a) Notwithstanding any law to the contrary, any public pension plan whose assets 
70.15 	are not invested by the State Board of Investment may invest its funds in Minnesota situs 
70.16 	nonfarm real estate ownership interests or loans secured by mortgages or deeds of trust if 
70.17 	the investment is consistent with section 356A.04.  
70.18 	(b) Except to the extent authorized in the case of the Minneapolis Employees 
70.19 	Retirement Fund under section 422A.05, subdivision 2c, paragraph (a), An investment 
70.20 	otherwise authorized by this section must also comply with the requirements and 
70.21 	limitations of section 11A.24, subdivision 6.  

70.22 	Sec. 36. Minnesota Statutes 2008, section 356.65, subdivision 2, is amended to read:
70.23 		Subd. 2. Disposition of abandoned amounts. Any unclaimed public pension 
70.24 	fund amounts existing in any public pension fund are presumed to be abandoned, but are 
70.25 	not subject to the provisions of sections 345.31 to 345.60. Unless the benefit plan of 
70.26 	the public pension fund specifically provides for a different disposition of unclaimed or 
70.27 	abandoned funds or amounts, any unclaimed public pension fund amounts cancel and 
70.28 	must be credited to the public pension fund. If the unclaimed public pension fund amount 
70.29 	exceeds $25 and the inactive or former member again becomes a member of the applicable 
70.30 	public pension plan or applies for a retirement annuity under section 3A.12, 352.72, 
70.31 	352B.30, 353.71, 354.60, or 356.30, or 422A.16, subdivision 8, whichever applies, the 
70.32 	canceled amount must be restored to the credit of the person. 

71.1 	Sec. 37. Minnesota Statutes 2008, section 356.91, is amended to read:
71.2 	356.91 VOLUNTARY MEMBERSHIP DUES DEDUCTION.
71.3 	(a) Upon written authorization of a person receiving an annuity from a public 
71.4 	pension fund administered by the Minnesota State Retirement System,or the Public 
71.5 	Employees Retirement Association, or the Minneapolis Employees Retirement Fund, the 
71.6 	executive director of the public pension fund may deduct from the retirement annuity an 
71.7 	amount requested by the annuitant to be paid as dues to any labor organization that is an 
71.8 	exclusive bargaining agent representing public employees or an organization representing 
71.9 	retired public employees of which the annuitant is a member and shall pay the amount to 
71.10 	the organization so designated by the annuitant.
71.11 	(b) A pension fund and the plan fiduciaries which authorize or administer deductions 
71.12 	of dues payments under paragraph (a) are not liable for failure to properly deduct or 
71.13 	transmit the dues amounts, provided that the fund and the fiduciaries have acted in good 
71.14 	faith.
71.15 	(c) The deductions under paragraph (a) may occur no more frequently than two 
71.16 	times per year and may not be used for political purposes.
71.17 	(d) Any labor organization specified in paragraph (a) shall reimburse the public 
71.18 	pension fund for the administrative expense of withholding premium amounts.

71.19 	Sec. 38. Minnesota Statutes 2009 Supplement, section 356.96, subdivision 1, is 
71.20 	amended to read:
71.21 		Subdivision 1.Definitions. (a) Unless the language or context clearly indicates that 
71.22 	a different meaning is intended, for the purpose of this section, the terms in paragraphs 
71.23 	(b) to (e) have the meanings given them.
71.24 	(b) "Chief administrative officer" means the executive director of a covered pension 
71.25 	plan or the executive director's designee or representative.
71.26 	(c) "Covered pension plan" means a plan enumerated in section 356.20, subdivision 
71.27 	2, clauses (1) to (4), (10) (9), and (13)(12) to (16) (15), but does not mean the 
71.28 	deferred compensation plan administered under sections 352.965 and 352.97 or to the 
71.29 	postretirement health care savings plan administered under section 352.98.
71.30 	(d) "Governing board" means the Board of Trustees of the Public Employees 
71.31 	Retirement Association, the Board of Trustees of the Teachers Retirement Association, or 
71.32 	the Board of Directors of the Minnesota State Retirement System.
71.33 	(e) "Person" includes an active, retired, deferred, or nonvested inactive participant in 
71.34 	a covered pension plan or a beneficiary of a participant, or an individual who has applied 
72.1 	to be a participant or who is or may be a survivor of a participant, or a state agency or 
72.2 	other governmental unit that employs active participants in a covered pension plan.

72.3 	Sec. 39. Minnesota Statutes 2008, section 473.511, subdivision 3, is amended to read:
72.4 		Subd. 3.Existing sanitary districts, joint sewer boards. Effective January 1, 
72.5 	1971, the corporate existence of the Minneapolis-St. Paul Sanitary District, the North 
72.6 	Suburban Sanitary Sewer District, and any joint board created by agreement among local 
72.7 	government units pursuant to under section 471.59, to provide interceptors and treatment 
72.8 	works for such local government units, shall terminate. All persons regularly employed by 
72.9 	such sanitary districts and joint boards on that date or on any earlier date on which the 
72.10 	former waste control commission pursuant to subdivisions 1 and 2 assumed ownership and 
72.11 	control of any interceptors or treatment works owned or operated by such sanitary districts 
72.12 	and joint boards, and who are employees of the commission on July 1, 1994, shall be are
72.13 	employees of the council, and may at their option become members of the Minnesota 
72.14 	State Retirement System or may continue as members of a public retirement association 
72.15 	under chapter 422A or any other law, to which they belonged before such date, and shall 
72.16 	retain all pension rights which they may have under such latter laws, and all other rights to 
72.17 	which they are entitled by contract or law. Members of trades who are employed by the 
72.18 	former Metropolitan Waste Control Commission, who have trade union pension coverage 
72.19 	pursuant to under a collective bargaining agreement, and who elected exclusion from 
72.20 	coverage pursuant to under section 473.512, or who are first employed after July 1, 1977, 
72.21 	shall may not be covered by the Minnesota State Retirement System. The council shall 
72.22 	make the employer's contributions to pension funds of its employees. Such employees 
72.23 	shall perform such duties as may be prescribed by the council. All funds of such sanitary 
72.24 	districts and joint boards then on hand, and all subsequent collections of taxes, special 
72.25 	assessments or service charges levied or imposed by or for such sanitary districts or joint 
72.26 	boards shall must be transferred to the council. The local government units otherwise 
72.27 	entitled to such cash, taxes, assessments or service charges shall must be credited with 
72.28 	such amounts, and such credits shall must be offset against any amounts to be paid by 
72.29 	them to the council as provided in section 473.517. The former Metropolitan Waste 
72.30 	Control Commission, and on July 1, 1994, the council shall succeed to and become vested 
72.31 	by action of law with all right, title and interest in and to any property, real or personal, 
72.32 	owned or operated by such sanitary districts and joint boards. Prior to that date the proper 
72.33 	officers of such sanitary districts and joint boards, or the former Metropolitan Waste 
72.34 	Control Commission, shall execute and deliver to the council all deeds, conveyances, bills 
72.35 	of sale, and other documents or instruments required to vest in the council good and 
73.1 	marketable title to all such real or personal property; provided that vesting of the title shall
73.2 	must occur by operation of law and failure to execute and deliver the documents shall does
73.3 	not affect the vesting of title in the former Metropolitan Waste Control Commission or the 
73.4 	council on the dates indicated in this subdivision. The council shall become obligated to 
73.5 	pay or assume all bonded or other debt and contract obligations incurred by the former 
73.6 	Metropolitan Waste Control Commission, or by such sanitary districts and joint boards, or 
73.7 	incurred by local government units for the acquisition or betterment of any interceptors or 
73.8 	treatment works owned or operated by such sanitary districts or joint boards.  

73.9 	Sec. 40. Minnesota Statutes 2008, section 473.606, subdivision 5, is amended to read:
73.10 		Subd. 5.Employees, others, affirmative action; prevailing wage. The corporation 
73.11 	shall have the power to appoint engineers and other consultants, attorneys, and such 
73.12 	other officers, agents, and employees as it may see fit, who shall perform such duties and 
73.13 	receive such compensation as the corporation may determine, and be removable at the 
73.14 	pleasure of the corporation. The corporation shall must adopt an affirmative action plan, 
73.15 	which shall be submitted to the appropriate agency or office of the state for review and 
73.16 	approval. The plan shall must include a yearly progress report to the agency or office. 
73.17 	Officers and employees of the corporation who cannot qualify and participate in the 
73.18 	municipal employees retirement fund under chapter 422A, shall be separated from service 
73.19 	at the retirement age applicable to officers or employees of the state of Minnesota in the 
73.20 	classified service of the state civil service as provided in section 43A.34, or as the same 
73.21 	may from time to time be amended, regardless of the provisions of the Veteran's Preference 
73.22 	Act. Whenever the corporation performs any work within the limits of a city of the first 
73.23 	class, or establishes a minimum wage for skilled or unskilled labor in the specifications or 
73.24 	any contract for work within one of the cities, the rate of pay to such skilled and unskilled 
73.25 	labor shall must be the prevailing rate of wage for such labor in that city.  

73.26 	Sec. 41. Minnesota Statutes 2008, section 475.52, subdivision 6, is amended to read:
73.27 		Subd. 6. Certain purposes. Any municipality may issue bonds for paying 
73.28 	judgments against it; for refunding outstanding bonds; for funding floating indebtedness; 
73.29 	for funding actuarial liabilities to pay postemployment benefits to employees or officers 
73.30 	after their termination of service; or for funding all or part of the municipality's current 
73.31 	and future unfunded liability for a pension or retirement fund or plan referred to in 
73.32 	section 356.20, subdivision 2, as those liabilities are most recently computed pursuant 
73.33 	to under sections 356.215 and 356.216. The board of trustees or directors of a pension 
73.34 	fund or relief association referred to in section 69.77or chapter 422A must consent and 
74.1 	must be a party to any contract made under this section with respect to the fund held by 
74.2 	it for the benefit of and in trust for its members. For purposes of this section, the term 
74.3 	"postemployment benefits" means benefits giving rise to a liability under Statement No. 
74.4 	45 of the Governmental Accounting Standards Board. 

74.5 	Sec. 42. Minnesota Statutes 2009 Supplement, section 480.181, subdivision 2, is 
74.6 	amended to read:
74.7 		Subd. 2.Election to retain insurance and benefits; retirement. (a) Before a 
74.8 	person is transferred to state employment under this section, the person may elect to do 
74.9 	either or both of the following:
74.10 	(1) keep life insurance; hospital, medical, and dental insurance; and vacation and 
74.11 	sick leave benefits and accumulated time provided by the county instead of receiving 
74.12 	benefits from the state under the judicial branch personnel rules; or
74.13 	(2) remain a member of the general employees retirement plan of the Public 
74.14 	Employees Retirement Association or the Minneapolis employees retirement fundMERF 
74.15 	division of the Public Employees Retirement Association instead of joining the Minnesota 
74.16 	State Retirement System.
74.17 	Employees who make an election under clause (1) remain on the county payroll, 
74.18 	but the state shall reimburse the county on a quarterly basis for the salary and cost of the 
74.19 	benefits provided by the county. The state shall make the employer contribution to the 
74.20 	general employees retirement plan of the Public Employees Retirement Association or the 
74.21 	employer contribution under section 422A.101 353.50, subdivision 1a 7, paragraphs (c) 
74.22 	and (d), to the Minneapolis Employees Retirement FundMERF division of the Public 
74.23 	Employees Retirement Association on behalf of employees who make an election under 
74.24 	clause (2). 
74.25 	(b) An employee who makes an election under paragraph (a), clause (1), may revoke 
74.26 	the election, once, at any time, but if the employee revokes the election, the employee 
74.27 	cannot make another election. An employee who makes an election under paragraph (a), 
74.28 	clause (2), may revoke the election at any time within six months after the person becomes 
74.29 	a state employee. Once an employee revokes this election, the employee cannot make 
74.30 	another election.
74.31 	(c) The Supreme Court, after consultation with the Judicial Council, the 
74.32 	commissioner of management and budget, and the executive directors of the Public 
74.33 	Employees Retirement Association and the Minnesota State Retirement Association, shall 
74.34 	adopt procedures for making elections under this section.
75.1 	(d) The Supreme Court shall notify all affected employees of the options available 
75.2 	under this section. The executive directors of the Public Employees Retirement 
75.3 	Association and the Minnesota State Retirement System shall provide counseling to 
75.4 	affected employees on the effect of making an election to remain a member of the Public 
75.5 	Employees Retirement Association.

75.6 	Sec. 43. APPROPRIATIONS MADE ONLY ONCE.
 75.7 	If the appropriations made in this act are enacted more than once in the 2010 regular 
75.8 	session, these appropriations must be given effect only once.

75.9 	EFFECTIVE DATE. This section is effective the day following final enactment.

75.10 	Sec. 44. EFFECTIVE DATE.
 75.11 	Sections 1 to 42 are effective June 30, 2010.