<a id="pl.1.3"></a><var>1.3</var>administrative functions to the Public Employees Retirement Association; <br/>
<a id="pl.1.4"></a><var>1.4</var>creation of MERF consolidation account within the Public Employees Retirement <br/>
<a id="pl.1.5"></a><var>1.5</var>Association; appropriating money;amending Minnesota Statutes 2008, sections <br/>
<a id="pl.1.6"></a><var>1.6</var>11A.23, subdivision 4; 13D.01, subdivision 1; 43A.17, subdivision 9; 43A.316, <br/>
<a id="pl.1.7"></a><var>1.7</var>subdivision 8; 69.021, subdivision 10; 126C.41, subdivision 3; 256D.21; <br/>
<a id="pl.1.8"></a><var>1.8</var>353.01, subdivision 2b, by adding subdivisions; 353.03, subdivision 1; 353.05; <br/>
<a id="pl.1.9"></a><var>1.9</var>353.27, as amended; 353.34, subdivisions 1, 6; 353.37, subdivisions 1, 2, 3, <br/>
<a id="pl.1.10"></a><var>1.10</var>4, 5; 353.46, subdivisions 2, 6; 353.64, subdivision 7; 353.71, subdivision 4; <br/>
<a id="pl.1.11"></a><var>1.11</var>353.86, subdivisions 1, 2; 353.87, subdivisions 1, 2; 353.88; 354.71; 354A.011, <br/>
<a id="pl.1.12"></a><var>1.12</var>subdivision 27; 354A.39; 355.095, subdivision 1; 356.214, subdivision 1; <br/>
<a id="pl.1.13"></a><var>1.13</var>356.215, subdivision 8; 356.30, subdivision 3; 356.302, subdivisions 1, 7; <br/>
<a id="pl.1.14"></a><var>1.14</var>356.303, subdivision 4; 356.407, subdivision 2; 356.431, subdivision 1; 356.465, <br/>
<a id="pl.1.15"></a><var>1.15</var>subdivision 3; 356.64; 356.65, subdivision 2; 356.91; 422A.101, subdivision 3; <br/>
<a id="pl.1.16"></a><var>1.16</var>422A.26; 473.511, subdivision 3; 473.606, subdivision 5; 475.52, subdivision <br/>
<a id="pl.1.17"></a><var>1.17</var>6; Minnesota Statutes 2009 Supplement, sections 6.67; 69.011, subdivision <br/>
<a id="pl.1.18"></a><var>1.18</var>1; 69.031, subdivision 5; 352.01, subdivision 2b; 353.01, subdivision 2a; <br/>
<a id="pl.1.19"></a><var>1.19</var>353.06; 356.20, subdivision 2; 356.215, subdivision 11; 356.32, subdivision 2; <br/>
<a id="pl.1.20"></a><var>1.20</var>356.401, subdivision 3; 356.415, subdivision 2; 356.96, subdivision 1; 480.181, <br/>
<a id="pl.1.21"></a><var>1.21</var>subdivision 2; proposing coding for new law in Minnesota Statutes, chapter <br/>
<a id="pl.1.22"></a><var>1.22</var>353; repealing Minnesota Statutes 2008, sections 13.63, subdivision 1; 69.011, <br/>
<a id="pl.1.23"></a><var>1.23</var>subdivision 2a; 356.43; 422A.01, subdivisions 1, 2, 3, 4, 4a, 5, 6, 7, 8, 9, 10, 11, <br/>
<a id="pl.1.24"></a><var>1.24</var>12, 13a, 17, 18; 422A.02; 422A.03; 422A.04; 422A.05, subdivisions 1, 2a, 2b, <br/>
<a id="pl.1.25"></a><var>1.25</var>2c, 2d, 2e, 2f, 5, 6, 8; 422A.06, subdivisions 1, 2, 3, 5, 6, 7; 422A.08, subdivision <br/>
<a id="pl.1.26"></a><var>1.26</var>1; 422A.09; 422A.10; 422A.101, subdivisions 1, 1a, 2, 2a; 422A.11; 422A.12; <br/>
<a id="pl.1.27"></a><var>1.27</var>422A.13; 422A.14, subdivision 1; 422A.15; 422A.151; 422A.155; 422A.156; <br/>
<a id="pl.1.28"></a><var>1.28</var>422A.16, subdivisions 1, 2, 3, 4, 5, 6, 7, 8, 9, 10; 422A.17; 422A.18, subdivisions <br/>
<a id="pl.1.29"></a><var>1.29</var>1, 2, 3, 4, 5, 7; 422A.19; 422A.20; 422A.21; 422A.22, subdivisions 1, 3, 4, <br/>
<a id="pl.1.30"></a><var>1.30</var>6; 422A.23, subdivisions 1, 2, 5, 6, 7, 8, 9, 10, 11, 12; 422A.231; 422A.24; <br/>
<a id="pl.1.31"></a><var>1.31</var>422A.25; Minnesota Statutes 2009 Supplement, sections 422A.06, subdivision 8; <br/>
<a id="pl.1.32"></a><var>1.32</var>422A.08, subdivision 5.<br/>
<a id="pl.1.33"></a><var>1.33</var>BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:<br/>
<br/>
<a id="bill.1.0.0"></a>

<a id="bill.1.1.0"></a><a id="pl.2.3"></a><var>2.3</var>    Section 1. Minnesota Statutes 2009 Supplement, section 353.01, subdivision 2a, <br/>
<a id="pl.2.4"></a><var>2.4</var>is amended to read:<br/>
<a id="pl.2.5"></a><var>2.5</var>    Subd. 2a. <b>Included employees.</b> (a) Public employees whose salary from <br/>
<a id="pl.2.6"></a><var>2.6</var>employment in one or more positions within one governmental subdivision exceeds $425 <br/>
<a id="pl.2.7"></a><var>2.7</var>in any month shall participate as members of the association. If the salary is less than <br/>
<a id="pl.2.8"></a><var>2.8</var>$425 in a subsequent month, the employee retains membership eligibility. Eligible public <br/>
<a id="pl.2.9"></a><var>2.9</var>employees shall participate as members of the association with retirement coverage by <br/>
<a id="pl.2.10"></a><var>2.10</var>the public general employees retirement plan or under this chapter, the public employees <br/>
<a id="pl.2.11"></a><var>2.11</var>police and fire retirement plan under this chapter, or the local government correctional <br/>
<a id="pl.2.12"></a><var>2.12</var>employees retirement plan under chapter 353E, whichever applies, as a condition of their <br/>
<a id="pl.2.13"></a><var>2.13</var>employment on the first day of employment unless they:<br/>
<a id="pl.2.14"></a><var>2.14</var>    (1) are specifically excluded under subdivision 2b;<br/>
<a id="pl.2.15"></a><var>2.15</var>    (2) do not exercise their option to elect retirement coverage in the association as <br/>
<a id="pl.2.16"></a><var>2.16</var>provided in subdivision 2d, paragraph (a); or<br/>
<a id="pl.2.17"></a><var>2.17</var>    (3) are employees of the governmental subdivisions listed in subdivision 2d, <br/>
<a id="pl.2.18"></a><var>2.18</var>paragraph (b), where the governmental subdivision has not elected to participate as a <br/>
<a id="pl.2.19"></a><var>2.19</var>governmental subdivision covered by the association.<br/>
<a id="pl.2.20"></a><var>2.20</var>    (b) A public employee who was a member of the association on June 30, 2002, <br/>
<a id="pl.2.21"></a><var>2.21</var>based on employment that qualified for membership coverage by the public employees <br/>
<a id="pl.2.22"></a><var>2.22</var>retirement plan or the public employees police and fire plan under this chapter, or the <br/>
<a id="pl.2.23"></a><var>2.23</var>local government correctional employees retirement plan under chapter 353E as of June <br/>
<a id="pl.2.24"></a><var>2.24</var>30, 2002, retains that membership for the duration of the person's employment in that <br/>
<a id="pl.2.25"></a><var>2.25</var>position or incumbency in elected office. Except as provided in subdivision 28, the person <br/>
<a id="pl.2.26"></a><var>2.26</var>shall participate as a member until the employee or elected official terminates public <br/>
<a id="pl.2.27"></a><var>2.27</var>employment under subdivision 11a or terminates membership under subdivision 11b.<br/>
<a id="pl.2.28"></a><var>2.28</var>    (c) Public employees under paragraph (a) include:<br/>
<a id="pl.2.29"></a><var>2.29</var>(1) physicians under section 
         <statute_ref>353D.01</statute_ref>, subdivision 2, who do not elect public <br/>
<a id="pl.2.30"></a><var>2.30</var>employees defined contribution plan coverage under section 
         <statute_ref>353D.02</statute_ref>, subdivision 2;<br/>
<a id="pl.2.31"></a><var>2.31</var>(2) full-time employees of the Dakota County Agricultural Society; and<br/>
<a id="pl.2.32"></a><var>2.32</var>(3) employees of the Minneapolis Firefighters Relief Association or Minneapolis <br/>
<a id="pl.2.33"></a><var>2.33</var>Police Relief Association who are not excluded employees under subdivision 2b due to <br/>
<a id="pl.2.34"></a><var>2.34</var>coverage by the relief association pension plan and who elect Public Employee Retirement <br/>
<a id="pl.2.35"></a><var>2.35</var>Association general plan coverage under Laws 2009, chapter 169, article 12, section 10.<br/>
<a id="pl.3.1"></a><var>3.1</var>(d) For the purpose of participation in the MERF division of the general employees <br/>
<a id="pl.3.2"></a><var>3.2</var>retirement plan, public employees include employees who were members of the former <br/>
<a id="pl.3.3"></a><var>3.3</var>Minneapolis Employees Retirement Fund on June 29, 2010, and who participate as <br/>
<a id="pl.3.4"></a><var>3.4</var>members of the MERF division of the association.<br/>
<br/>
<a id="bill.1.2.0"></a><a id="pl.3.5"></a><var>3.5</var>    Sec. 2. Minnesota Statutes 2008, section 353.01, subdivision 2b, is amended to read:<br/>
<a id="pl.3.6"></a><var>3.6</var>    Subd. 2b. <b>Excluded employees.</b> The following public employees are not eligible to <br/>
<a id="pl.3.7"></a><var>3.7</var>participate as members of the association with retirement coverage by the public general <br/>
<a id="pl.3.8"></a><var>3.8</var>employees retirement plan, the local government correctional employees retirement plan <br/>
<a id="pl.3.9"></a><var>3.9</var>under chapter 353E, or the public employees police and fire retirement plan:<br/>
<a id="pl.3.10"></a><var>3.10</var>    (1) public officers, other than county sheriffs, who are elected to a governing body, <br/>
<a id="pl.3.11"></a><var>3.11</var>or persons who are appointed to fill a vacancy in an elective office of a governing body, <br/>
<a id="pl.3.12"></a><var>3.12</var>whose term of office commences on or after July 1, 2002, for the service to be rendered <br/>
<a id="pl.3.13"></a><var>3.13</var>in that elective position;<br/>
<a id="pl.3.14"></a><var>3.14</var>    (2) election officers or election judges;<br/>
<a id="pl.3.15"></a><var>3.15</var>    (3) patient and inmate personnel who perform services for a governmental <br/>
<a id="pl.3.16"></a><var>3.16</var>subdivision;<br/>
<a id="pl.3.17"></a><var>3.17</var>    (4) except as otherwise specified in subdivision 12a, employees who are hired for <br/>
<a id="pl.3.18"></a><var>3.18</var>a temporary position as defined under subdivision 12a, and employees who resign from <br/>
<a id="pl.3.19"></a><var>3.19</var>a nontemporary position and accept a temporary position within 30 days in the same <br/>
<a id="pl.3.20"></a><var>3.20</var>governmental subdivision;<br/>
<a id="pl.3.21"></a><var>3.21</var>    (5) employees who are employed by reason of work emergency caused by fire, <br/>
<a id="pl.3.22"></a><var>3.22</var>flood, storm, or similar disaster;<br/>
<a id="pl.3.23"></a><var>3.23</var>    (6) employees who by virtue of their employment in one governmental subdivision <br/>
<a id="pl.3.24"></a><var>3.24</var>are required by law to be a member of and to contribute to any of the plans or funds <br/>
<a id="pl.3.25"></a><var>3.25</var>administered by the Minnesota State Retirement System, the Teachers Retirement <br/>
<a id="pl.3.26"></a><var>3.26</var>Association, the Duluth Teachers Retirement Fund Association, the St. Paul Teachers <br/>
<a id="pl.3.27"></a><var>3.27</var>Retirement Fund Association, the Minneapolis Employees Retirement Fund, or any police <br/>
<a id="pl.3.28"></a><var>3.28</var>or firefighters relief association governed by section 
         <statute_ref>69.77</statute_ref> that has not consolidated <br/>
<a id="pl.3.29"></a><var>3.29</var>with the Public Employees Retirement Association, or any local police or firefighters <br/>
<a id="pl.3.30"></a><var>3.30</var>consolidation account who have not elected the type of benefit coverage provided by the <br/>
<a id="pl.3.31"></a><var>3.31</var>public employees police and fire fund under sections 
         <statute_ref>353A.01</statute_ref> to 
         <statute_ref>353A.10</statute_ref>, or any persons <br/>
<a id="pl.3.32"></a><var>3.32</var>covered by section 
         <statute_ref>353.665, subdivision 4</statute_ref>, 5, or 6, who have not elected public employees <br/>
<a id="pl.3.33"></a><var>3.33</var>police and fire plan benefit coverage. This clause must not be construed to prevent a person <br/>
<a id="pl.3.34"></a><var>3.34</var>from being a member of and contributing to the Public Employees Retirement Association <br/>
<a id="pl.3.35"></a><var>3.35</var>and also belonging to and contributing to another public pension plan or fund for other <br/>
<a id="pl.4.1"></a><var>4.1</var>service occurring during the same period of time. A person who meets the definition of <br/>
<a id="pl.4.2"></a><var>4.2</var>"public employee" in subdivision 2 by virtue of other service occurring during the same <br/>
<a id="pl.4.3"></a><var>4.3</var>period of time becomes a member of the association unless contributions are made to <br/>
<a id="pl.4.4"></a><var>4.4</var>another public retirement fund on the salary based on the other service or to the Teachers <br/>
<a id="pl.4.5"></a><var>4.5</var>Retirement Association by a teacher as defined in section 
         <statute_ref>354.05, subdivision 2</statute_ref>;<br/>
<a id="pl.4.6"></a><var>4.6</var>    (7) persons who are members of a religious order and are excluded from coverage <br/>
<a id="pl.4.7"></a><var>4.7</var>under the federal Old Age, Survivors, Disability, and Health Insurance Program for the <br/>
<a id="pl.4.8"></a><var>4.8</var>performance of service as specified in United States Code, title 42, section 410(a)(8)(A), <br/>
<a id="pl.4.9"></a><var>4.9</var>as amended through January 1, 1987, if no irrevocable election of coverage has been made <br/>
<a id="pl.4.10"></a><var>4.10</var>under section 3121(r) of the Internal Revenue Code of 1954, as amended;<br/>
<a id="pl.4.11"></a><var>4.11</var>    (8) employees of a governmental subdivision who have not reached the age of <br/>
<a id="pl.4.12"></a><var>4.12</var>23 and are enrolled on a full-time basis to attend or are attending classes on a full-time <br/>
<a id="pl.4.13"></a><var>4.13</var>basis at an accredited school, college, or university in an undergraduate, graduate, or <br/>
<a id="pl.4.14"></a><var>4.14</var>professional-technical program, or a public or charter high school;<br/>
<a id="pl.4.15"></a><var>4.15</var>    (9) resident physicians, medical interns, and pharmacist residents and pharmacist <br/>
<a id="pl.4.16"></a><var>4.16</var>interns who are serving in a degree or residency program in public hospitals or clinics;<br/>
<a id="pl.4.17"></a><var>4.17</var>    (10) students who are serving in an internship or residency program sponsored <br/>
<a id="pl.4.18"></a><var>4.18</var>by an accredited educational institution;<br/>
<a id="pl.4.19"></a><var>4.19</var>    (11) persons who hold a part-time adult supplementary technical college license who <br/>
<a id="pl.4.20"></a><var>4.20</var>render part-time teaching service in a technical college;<br/>
<a id="pl.4.21"></a><var>4.21</var>    (12) except for employees of Hennepin County or Hennepin Healthcare System, <br/>
<a id="pl.4.22"></a><var>4.22</var>Inc., foreign citizens working for a governmental subdivision with a work permit of less <br/>
<a id="pl.4.23"></a><var>4.23</var>than three years, or an H-1b visa valid for less than three years of employment. Upon <br/>
<a id="pl.4.24"></a><var>4.24</var>notice to the association that the work permit or visa extends beyond the three-year period, <br/>
<a id="pl.4.25"></a><var>4.25</var>the foreign citizens must be reported for membership from the date of the extension;<br/>
<a id="pl.4.26"></a><var>4.26</var>    (13) public hospital employees who elected not to participate as members of the <br/>
<a id="pl.4.27"></a><var>4.27</var>association before 1972 and who did not elect to participate from July 1, 1988, to October <br/>
<a id="pl.4.28"></a><var>4.28</var>1, 1988;<br/>
<a id="pl.4.29"></a><var>4.29</var>    (14) except as provided in section 
         <statute_ref>353.86</statute_ref>, volunteer ambulance service personnel, <br/>
<a id="pl.4.30"></a><var>4.30</var>as defined in subdivision 35, but persons who serve as volunteer ambulance service <br/>
<a id="pl.4.31"></a><var>4.31</var>personnel may still qualify as public employees under subdivision 2 and may be members <br/>
<a id="pl.4.32"></a><var>4.32</var>of the Public Employees Retirement Association and participants in the public general <br/>
<a id="pl.4.33"></a><var>4.33</var>employees retirement fund or the public employees police and fire fund, whichever <br/>
<a id="pl.4.34"></a><var>4.34</var>applies, on the basis of compensation received from public employment service other than <br/>
<a id="pl.4.35"></a><var>4.35</var>service as volunteer ambulance service personnel;<br/>
<a id="pl.5.1"></a><var>5.1</var>    (15) except as provided in section 
         <statute_ref>353.87</statute_ref>, volunteer firefighters, as defined in <br/>
<a id="pl.5.2"></a><var>5.2</var>subdivision 36, engaging in activities undertaken as part of volunteer firefighter duties; <br/>
<a id="pl.5.3"></a><var>5.3</var>provided that a person who is a volunteer firefighter may still qualify as a public <br/>
<a id="pl.5.4"></a><var>5.4</var>employee under subdivision 2 and may be a member of the Public Employees Retirement <br/>
<a id="pl.5.5"></a><var>5.5</var>Association and a participant in the public general employees retirement fund or the public <br/>
<a id="pl.5.6"></a><var>5.6</var>employees police and fire fund, whichever applies, on the basis of compensation received <br/>
<a id="pl.5.7"></a><var>5.7</var>from public employment activities other than those as a volunteer firefighter;<br/>
<a id="pl.5.8"></a><var>5.8</var>    (16) pipefitters and associated trades personnel employed by Independent School <br/>
<a id="pl.5.9"></a><var>5.9</var>District No. 625, St. Paul, with coverage under a collective bargaining agreement by the <br/>
<a id="pl.5.10"></a><var>5.10</var>pipefitters local 455 pension plan who were either first employed after May 1, 1997, or, <br/>
<a id="pl.5.11"></a><var>5.11</var>if first employed before May 2, 1997, elected to be excluded under Laws 1997, chapter <br/>
<a id="pl.5.12"></a><var>5.12</var>241, article 2, section 12;<br/>
<a id="pl.5.13"></a><var>5.13</var>    (17) electrical workers, plumbers, carpenters, and associated trades personnel <br/>
<a id="pl.5.14"></a><var>5.14</var>employed by Independent School District No. 625, St. Paul, or the city of St. Paul, <br/>
<a id="pl.5.15"></a><var>5.15</var>who have retirement coverage under a collective bargaining agreement by the Electrical <br/>
<a id="pl.5.16"></a><var>5.16</var>Workers Local 110 pension plan, the United Association Plumbers Local 34 pension plan, <br/>
<a id="pl.5.17"></a><var>5.17</var>or the Carpenters Local 87 pension plan who were either first employed after May 1, <br/>
<a id="pl.5.18"></a><var>5.18</var>2000, or, if first employed before May 2, 2000, elected to be excluded under Laws 2000, <br/>
<a id="pl.5.19"></a><var>5.19</var>chapter 461, article 7, section 5;<br/>
<a id="pl.5.20"></a><var>5.20</var>    (18) bricklayers, allied craftworkers, cement masons, glaziers, glassworkers, <br/>
<a id="pl.5.21"></a><var>5.21</var>painters, allied tradesworkers, and plasterers employed by the city of St. Paul or <br/>
<a id="pl.5.22"></a><var>5.22</var>Independent School District No. 625, St. Paul, with coverage under a collective <br/>
<a id="pl.5.23"></a><var>5.23</var>bargaining agreement by the Bricklayers and Allied Craftworkers Local 1 pension plan, <br/>
<a id="pl.5.24"></a><var>5.24</var>the Cement Masons Local 633 pension plan, the Glaziers and Glassworkers Local L-1324 <br/>
<a id="pl.5.25"></a><var>5.25</var>pension plan, the Painters and Allied Trades Local 61 pension plan, or the Twin Cities <br/>
<a id="pl.5.26"></a><var>5.26</var>Plasterers Local 265 pension plan who were either first employed after May 1, 2001, or if <br/>
<a id="pl.5.27"></a><var>5.27</var>first employed before May 2, 2001, elected to be excluded under Laws 2001, First Special <br/>
<a id="pl.5.28"></a><var>5.28</var>Session chapter 10, article 10, section 6;<br/>
<a id="pl.5.29"></a><var>5.29</var>    (19) plumbers employed by the Metropolitan Airports Commission, with coverage <br/>
<a id="pl.5.30"></a><var>5.30</var>under a collective bargaining agreement by the Plumbers Local 34 pension plan, who either <br/>
<a id="pl.5.31"></a><var>5.31</var>were first employed after May 1, 2001, or if first employed before May 2, 2001, elected to <br/>
<a id="pl.5.32"></a><var>5.32</var>be excluded under Laws 2001, First Special Session chapter 10, article 10, section 6;<br/>
<a id="pl.5.33"></a><var>5.33</var>    (20) employees who are hired after June 30, 2002, to fill seasonal positions under <br/>
<a id="pl.5.34"></a><var>5.34</var>subdivision 12b which are limited in duration by the employer to 185 consecutive calendar <br/>
<a id="pl.5.35"></a><var>5.35</var>days or less in each year of employment with the governmental subdivision;<br/>
<a id="pl.6.1"></a><var>6.1</var>    (21) persons who are provided supported employment or work-study positions <br/>
<a id="pl.6.2"></a><var>6.2</var>by a governmental subdivision and who participate in an employment or industries <br/>
<a id="pl.6.3"></a><var>6.3</var>program maintained for the benefit of these persons where the governmental subdivision <br/>
<a id="pl.6.4"></a><var>6.4</var>limits the position's duration to three years or less, including persons participating in a <br/>
<a id="pl.6.5"></a><var>6.5</var>federal or state subsidized on-the-job training, work experience, senior citizen, youth, or <br/>
<a id="pl.6.6"></a><var>6.6</var>unemployment relief program where the training or work experience is not provided as a <br/>
<a id="pl.6.7"></a><var>6.7</var>part of, or for, future permanent public employment;<br/>
<a id="pl.6.8"></a><var>6.8</var>    (22) independent contractors and the employees of independent contractors; and<br/>
<a id="pl.6.9"></a><var>6.9</var>    (23) reemployed annuitants of the association during the course of that <br/>
<a id="pl.6.10"></a><var>6.10</var>reemployment.<br/>
<br/>
<a id="bill.1.3.0"></a><a id="pl.6.11"></a><var>6.11</var>    Sec. 3. Minnesota Statutes 2008, section 353.01, is amended by adding a subdivision <br/>
<a id="pl.6.12"></a><var>6.12</var>to read:<br/>
<a id="pl.6.13"></a><var>6.13</var>    Subd. 47. <b>MERF division.</b> "MERF division" means the separate retirement plan <br/>
<a id="pl.6.14"></a><var>6.14</var>within the general employees retirement plan of the Public Employees Retirement <br/>
<a id="pl.6.15"></a><var>6.15</var>Association containing the applicable provisions of Minnesota Statutes 2008, chapter <br/>
<a id="pl.6.16"></a><var>6.16</var>422A.<br/>
<br/>
<a id="bill.1.4.0"></a><a id="pl.6.17"></a><var>6.17</var>    Sec. 4. Minnesota Statutes 2008, section 353.01, is amended by adding a subdivision <br/>
<a id="pl.6.18"></a><var>6.18</var>to read:<br/>
<a id="pl.6.19"></a><var>6.19</var>    Subd. 48. <b>MERF division account.</b> "MERF division account" means the separate <br/>
<a id="pl.6.20"></a><var>6.20</var>account within the retirement fund of the general employees retirement fund of the <br/>
<a id="pl.6.21"></a><var>6.21</var>Public Employees Retirement Association in which the actuarial liabilities of the former <br/>
<a id="pl.6.22"></a><var>6.22</var>Minneapolis Employees Retirement Fund are held, and in which the assets of the former <br/>
<a id="pl.6.23"></a><var>6.23</var>Minneapolis Employees Retirement Fund are credited.<br/>
<br/>
<a id="bill.1.5.0"></a><a id="pl.6.24"></a><var>6.24</var>    Sec. 5. Minnesota Statutes 2008, section 353.05, is amended to read:<br/>
<a id="pl.6.25"></a><var>6.25</var><b>353.05 CUSTODIAN OF FUNDS.</b><br/>
<a id="pl.6.26"></a><var>6.26</var>The commissioner of management and budget shall be ex officio treasurer of the <br/>
<a id="pl.6.27"></a><var>6.27</var>retirement funds of the association, including the MERF division,  and the general bond of <br/>
<a id="pl.6.28"></a><var>6.28</var>the commissioner of management and budget to the state shall be so conditioned as to <br/>
<a id="pl.6.29"></a><var>6.29</var>cover all liability for acts as treasurer of these funds. All moneys money of the association <br/>
<a id="pl.6.30"></a><var>6.30</var>received by the commissioner of management and budget shall be set aside in the state <br/>
<a id="pl.6.31"></a><var>6.31</var>treasury to the credit of the proper fund or account. The commissioner of management and <br/>
<a id="pl.6.32"></a><var>6.32</var>budget shall transmit monthly to the executive director a detailed statement of all amounts <br/>
<a id="pl.6.33"></a><var>6.33</var>so received and credited to the fund funds, including the MERF division. Payments out <br/>
<a id="pl.7.1"></a><var>7.1</var>of the fund shall funds, including the MERF division, may only be made only on warrants <br/>
<a id="pl.7.2"></a><var>7.2</var>issued by the commissioner of management and budget, upon abstracts signed by the <br/>
<a id="pl.7.3"></a><var>7.3</var>executive director; provided that abstracts for investment may be signed by the secretary <br/>
<a id="pl.7.4"></a><var>7.4</var>executive director of the State Board of Investment.<br/>
<br/>
<a id="bill.1.6.0"></a><a id="pl.7.5"></a><var>7.5</var>    Sec. 6. Minnesota Statutes 2009 Supplement, section 353.06, is amended to read:<br/>
<a id="pl.7.6"></a><var>7.6</var><b>353.06 STATE BOARD OF INVESTMENT TO INVEST FUNDS.</b><br/>
<a id="pl.7.7"></a><var>7.7</var>The executive director shall from time to time certify to the State Board of <br/>
<a id="pl.7.8"></a><var>7.8</var>Investment for investment such portions of the retirement fund funds of the association, <br/>
<a id="pl.7.9"></a><var>7.9</var>including the MERF division, as in its the director's judgment may not be required for <br/>
<a id="pl.7.10"></a><var>7.10</var>immediate use. The State Board of Investment shall thereupon invest and reinvest the sum <br/>
<a id="pl.7.11"></a><var>7.11</var>so certified, or transferred, in such securities as are duly authorized as legal investments <br/>
<a id="pl.7.12"></a><var>7.12</var>for state employees retirement fund under section 11A.24 and shall have has authority to <br/>
<a id="pl.7.13"></a><var>7.13</var>sell, convey, and exchange such securities and invest and reinvest the securities when it <br/>
<a id="pl.7.14"></a><var>7.14</var>deems it desirable to do so and shall sell securities upon request of the board of trustees <br/>
<a id="pl.7.15"></a><var>7.15</var>executive director when such funds are needed for its purposes. All of the provisions <br/>
<a id="pl.7.16"></a><var>7.16</var>regarding accounting procedures and restrictions and conditions for the purchase and <br/>
<a id="pl.7.17"></a><var>7.17</var>sale of securities under chapter 11A must apply to the accounting, purchase and sale of <br/>
<a id="pl.7.18"></a><var>7.18</var>securities for the funds of the Public Employees Retirement fund Association, including <br/>
<a id="pl.7.19"></a><var>7.19</var>the MERF division. <br/>
<br/>
<a id="bill.1.7.0"></a><a id="pl.7.20"></a><var>7.20</var>    Sec. 7. Minnesota Statutes 2008, section 353.27, as amended by Laws 2009, chapter <br/>
<a id="pl.7.21"></a><var>7.21</var>169, article 1, section 32, and article 4, sections 9, 10, 11, and 12, is amended to read:<br/>
<a id="pl.7.22"></a><var>7.22</var><b>353.27 </b><b>PUBLIC</b><b> </b><b>GENERAL </b><b>EMPLOYEES RETIREMENT FUND.</b><br/>
<a id="pl.7.23"></a><var>7.23</var>    Subdivision 1. <b>Income; disbursements.</b> There is a special fund known as the <br/>
<a id="pl.7.24"></a><var>7.24</var>"public general employees retirement fund," the "retirement fund," or the "fund," which <br/>
<a id="pl.7.25"></a><var>7.25</var>must include all the assets of the general employees retirement plan of the association. <br/>
<a id="pl.7.26"></a><var>7.26</var>This fund must be credited with all contributions, all interest and all other income of the <br/>
<a id="pl.7.27"></a><var>7.27</var>general employees retirement plan of the Public Employees Retirement Association that <br/>
<a id="pl.7.28"></a><var>7.28</var>are authorized by law. From this fund there is appropriated the payments authorized by <br/>
<a id="pl.7.29"></a><var>7.29</var>this chapter sections 353.01 to 353.46 in the amounts and at such time provided herein, <br/>
<a id="pl.7.30"></a><var>7.30</var>including the expenses of administering the general employees retirement plan and fund.<br/>
<a id="pl.7.31"></a><var>7.31</var>    Subd. 1a. <b>MERF division account established; revenue and disbursements.</b> The <br/>
<a id="pl.7.32"></a><var>7.32</var>MERF division account is established as a special account. The MERF division account <br/>
<a id="pl.7.33"></a><var>7.33</var>includes all of the assets of the former Minneapolis Employees Retirement Fund that <br/>
<a id="pl.7.34"></a><var>7.34</var>were transferred to the administration of the Public Employees Retirement Association <br/>
<a id="pl.8.1"></a><var>8.1</var>under section 353.50. The special account is credited with the contributions under section <br/>
<a id="pl.8.2"></a><var>8.2</var>353.50, subdivision 7, state aid under sections 356.43 and 422A.101, subdivision 3, <br/>
<a id="pl.8.3"></a><var>8.3</var>investment performance on the special account assets, and all other income of the MERF <br/>
<a id="pl.8.4"></a><var>8.4</var>division authorized by law. The payments of annuities and benefits authorized by chapter <br/>
<a id="pl.8.5"></a><var>8.5</var>422A in the amounts and at the times provided in that chapter, and the administrative <br/>
<a id="pl.8.6"></a><var>8.6</var>expenses of the MERF division are appropriated from the special account.<br/>
<a id="pl.8.7"></a><var>8.7</var>    Subd. 2. <b>General employees retirement plan; </b><b>employee contribution.</b> (a) For <br/>
<a id="pl.8.8"></a><var>8.8</var>a basic member of the general employees retirement plan of the Public Employees <br/>
<a id="pl.8.9"></a><var>8.9</var>Retirement Association, the employee contribution is 9.10 percent of salary. For a <br/>
<a id="pl.8.10"></a><var>8.10</var>coordinated member of the general employees retirement plan of the Public Employees <br/>
<a id="pl.8.11"></a><var>8.11</var>Retirement Association, the employee contribution is six percent of salary plus any <br/>
<a id="pl.8.12"></a><var>8.12</var>contribution rate adjustment under subdivision 3b.<br/>
<a id="pl.8.13"></a><var>8.13</var>(b) These contributions must be made by deduction from salary as defined in section <br/>
<statute_ref><a id="pl.8.14"></a><var>8.14</var>353.01, subdivision 10
         </statute_ref>, in the manner provided in subdivision 4. If any portion of a <br/>
<a id="pl.8.15"></a><var>8.15</var>member's salary is paid from other than public funds, the member's employee contribution <br/>
<a id="pl.8.16"></a><var>8.16</var>must be based on the total salary received by the member from all sources.<br/>
<a id="pl.8.17"></a><var>8.17</var>    Subd. 3. <b>General employees retirement plan; </b><b>employer contribution.</b> (a) For <br/>
<a id="pl.8.18"></a><var>8.18</var>a basic member of the general employees retirement plan of the Public Employees <br/>
<a id="pl.8.19"></a><var>8.19</var>Retirement Association, the employer contribution is 9.10 percent of salary. For a <br/>
<a id="pl.8.20"></a><var>8.20</var>coordinated member of the general employees retirement plan of the Public Employees <br/>
<a id="pl.8.21"></a><var>8.21</var>Retirement Association, the employer contribution is six percent of salary plus any <br/>
<a id="pl.8.22"></a><var>8.22</var>contribution rate adjustment under subdivision 3b.<br/>
<a id="pl.8.23"></a><var>8.23</var>(b) This contribution must be made from funds available to the employing <br/>
<a id="pl.8.24"></a><var>8.24</var>subdivision by the means and in the manner provided in section 
         <statute_ref>353.28</statute_ref>.<br/>
<a id="pl.8.25"></a><var>8.25</var>    Subd. 3a. <b>Additional employer contribution.</b> (a) An additional employer <br/>
<a id="pl.8.26"></a><var>8.26</var>contribution to the general employees retirement fund of the Public Employees Retirement <br/>
<a id="pl.8.27"></a><var>8.27</var>Association must be made equal to the following applicable percentage of the total salary <br/>
<a id="pl.8.28"></a><var>8.28</var>amount for "basic members" and for "coordinated members":<br/>
<table>
<col width="50px"/>
<col width="25"/>
<col width="2.5"/>
<col width="15"/>
<col width="2.5"/>
<col width="20"/>
<tr>
<td><a id="pl.8.29"></a><var>8.29</var><br/>
</td>
<td></td>
<td></td>
<td align="center">Basic Program<br/>
</td>
<td></td>
<td align="center">Coordinated Program<br/>
</td>
</tr>
<tr>
<td><a id="pl.8.30"></a><var>8.30</var><br/>
</td>
<td>Effective before January 1, 2006<br/>
</td>
<td></td>
<td align="center">2.68<br/>
</td>
<td></td>
<td align="center">.43<br/>
</td>
</tr>
<tr>
<td><a id="pl.8.31"></a><var>8.31</var><br/>
</td>
<td>Effective January 1, 2006<br/>
</td>
<td></td>
<td align="center">2.68<br/>
</td>
<td></td>
<td align="center">.50<br/>
</td>
</tr>
<tr>
<td><a id="pl.8.32"></a><var>8.32</var><br/>
</td>
<td>Effective January 1, 2009<br/>
</td>
<td></td>
<td align="center">2.68<br/>
</td>
<td></td>
<td align="center">.75<br/>
</td>
</tr>
<tr>
<td><a id="pl.8.33"></a><var>8.33</var><br/>
</td>
<td valign="top">Effective January 1, 2010<br/>
</td>
<td></td>
<td align="center" valign="top">2.68<br/>
</td>
<td></td>
<td align="center" valign="top">1.00<br/>
</td>
</tr>
</table><a id="pl.8.34"></a><var>8.34</var>These contributions must be made from funds available to the employing subdivision <br/>
<a id="pl.8.35"></a><var>8.35</var>by the means and in the manner provided in section 
         <statute_ref>353.28</statute_ref>.<br/>
<a id="pl.8.36"></a><var>8.36</var>(b) The coordinated program contribution rates set forth in paragraph (a) effective <br/>
<a id="pl.8.37"></a><var>8.37</var>for January 1, 2009, or January 1, 2010, must not be implemented if, following receipt of <br/>
<a id="pl.9.1"></a><var>9.1</var>the July 1, 2008, or July 1, 2009, annual actuarial valuation reports report under section <br/>
<statute_ref><a id="pl.9.2"></a><var>9.2</var>356.215
         </statute_ref>, respectively, the actuarially required contributions are equal to or less than the <br/>
<a id="pl.9.3"></a><var>9.3</var>total rates under this section in effect as of January 1, 2008.<br/>
<a id="pl.9.4"></a><var>9.4</var>(c) This subdivision is repealed once the actuarial value of the assets of the general <br/>
<a id="pl.9.5"></a><var>9.5</var>employees retirement plan of the Public Employees Retirement Association equal or <br/>
<a id="pl.9.6"></a><var>9.6</var>exceed the actuarial accrued liability of the plan as determined by the actuary retained <br/>
<a id="pl.9.7"></a><var>9.7</var>under sections 
         <statute_ref>356.214</statute_ref> and 
         <statute_ref>356.215</statute_ref>. The repeal is effective on the first day of the first full <br/>
<a id="pl.9.8"></a><var>9.8</var>pay period occurring after March 31 of the calendar year following the issuance of the <br/>
<a id="pl.9.9"></a><var>9.9</var>actuarial valuation upon which the repeal is based.<br/>
<a id="pl.9.10"></a><var>9.10</var>    Subd. 3b. <b>Change in employee and employer contributions in certain instances.</b><br/>
<a id="pl.9.11"></a><var>9.11</var>(a) For purposes of this section, a contribution sufficiency exists if the total of the <br/>
<a id="pl.9.12"></a><var>9.12</var>employee contribution under subdivision 2, the employer contribution under subdivision <br/>
<a id="pl.9.13"></a><var>9.13</var>3, the additional employer contribution under subdivision 3a, and any additional <br/>
<a id="pl.9.14"></a><var>9.14</var>contribution previously imposed under this subdivision exceeds the total of the normal <br/>
<a id="pl.9.15"></a><var>9.15</var>cost, the administrative expenses, and the amortization contribution of the general <br/>
<a id="pl.9.16"></a><var>9.16</var>employees retirement plan as reported in the most recent actuarial valuation of the <br/>
<a id="pl.9.17"></a><var>9.17</var>retirement plan prepared by the actuary retained under section 
         <statute_ref>356.214</statute_ref> and prepared under <br/>
<a id="pl.9.18"></a><var>9.18</var>section 
         <statute_ref>356.215</statute_ref> and the standards for actuarial work of the Legislative Commission on <br/>
<a id="pl.9.19"></a><var>9.19</var>Pensions and Retirement. For purposes of this section, a contribution deficiency exists if <br/>
<a id="pl.9.20"></a><var>9.20</var>the total of the employee contributions under subdivision 2, the employer contributions <br/>
<a id="pl.9.21"></a><var>9.21</var>under subdivision 3, the additional employer contribution under subdivision 3a, and any <br/>
<a id="pl.9.22"></a><var>9.22</var>additional contribution previously imposed under this subdivision is less than the total <br/>
<a id="pl.9.23"></a><var>9.23</var>of the normal cost, the administrative expenses, and the amortization contribution of the <br/>
<a id="pl.9.24"></a><var>9.24</var>general employees retirement plan as reported in the most recent actuarial valuation of the <br/>
<a id="pl.9.25"></a><var>9.25</var>retirement plan prepared by the actuary retained under section 
         <statute_ref>356.214</statute_ref> and prepared under <br/>
<a id="pl.9.26"></a><var>9.26</var>section 
         <statute_ref>356.215</statute_ref> and the standards for actuarial work of the Legislative Commission on <br/>
<a id="pl.9.27"></a><var>9.27</var>Pensions and Retirement.<br/>
<a id="pl.9.28"></a><var>9.28</var>(b) Employee and employer contributions to the general employees retirement plan <br/>
<a id="pl.9.29"></a><var>9.29</var>under subdivisions 2 and 3 must be adjusted:<br/>
<a id="pl.9.30"></a><var>9.30</var>(1) if, after July 1, 2010, the regular actuarial valuations of the general employees <br/>
<a id="pl.9.31"></a><var>9.31</var>retirement plan of the Public Employees Retirement Association under section 
         <statute_ref>356.215</statute_ref> <br/>
<a id="pl.9.32"></a><var>9.32</var>indicate that there is a contribution sufficiency under paragraph (a) equal to or greater <br/>
<a id="pl.9.33"></a><var>9.33</var>than 0.5 percent of covered payroll for two consecutive years, the coordinated program <br/>
<a id="pl.9.34"></a><var>9.34</var>employee and employer contribution rates must be decreased as determined under <br/>
<a id="pl.9.35"></a><var>9.35</var>paragraph (c) to a level such that the sufficiency equals no more than 0.25 percent of <br/>
<a id="pl.9.36"></a><var>9.36</var>covered payroll based on the most recent actuarial valuation; or<br/>
<a id="pl.10.1"></a><var>10.1</var>(2) if, after July 1, 2010, the regular actuarial valuations of the general employees <br/>
<a id="pl.10.2"></a><var>10.2</var>retirement plan of the Public Employees Retirement Association under section 
         <statute_ref>356.215</statute_ref> <br/>
<a id="pl.10.3"></a><var>10.3</var>indicate that there is a deficiency equal to or greater than 0.5 percent of covered payroll for <br/>
<a id="pl.10.4"></a><var>10.4</var>two consecutive years, the coordinated program employee and employer contribution rates <br/>
<a id="pl.10.5"></a><var>10.5</var>must be increased as determined under paragraph (c) to a level such that no deficiency <br/>
<a id="pl.10.6"></a><var>10.6</var>exists based on the most recent actuarial valuation.<br/>
<a id="pl.10.7"></a><var>10.7</var>(c) The general employees retirement plan contribution rate increase or decrease <br/>
<a id="pl.10.8"></a><var>10.8</var>must be determined by the executive director of the Public Employees Retirement <br/>
<a id="pl.10.9"></a><var>10.9</var>Association, must be reported to the chair and the executive director of the Legislative <br/>
<a id="pl.10.10"></a><var>10.10</var>Commission on Pensions and Retirement on or before the next February 1, and, if the <br/>
<a id="pl.10.11"></a><var>10.11</var>Legislative Commission on Pensions and Retirement does not recommend against the rate <br/>
<a id="pl.10.12"></a><var>10.12</var>change or does not recommend a modification in the rate change, is effective on the <br/>
<a id="pl.10.13"></a><var>10.13</var>next July 1 following the determination by the executive director that a contribution <br/>
<a id="pl.10.14"></a><var>10.14</var>deficiency or sufficiency has existed for two consecutive fiscal years based on the most <br/>
<a id="pl.10.15"></a><var>10.15</var>recent actuarial valuations under section 
         <statute_ref>356.215</statute_ref>. If the actuarially required contribution <br/>
<a id="pl.10.16"></a><var>10.16</var>of the general employees retirement plan exceeds or is less than the total support provided <br/>
<a id="pl.10.17"></a><var>10.17</var>by the combined employee and employer contribution rates by more than 0.5 percent of <br/>
<a id="pl.10.18"></a><var>10.18</var>covered payroll, the general employees retirement plan coordinated program employee <br/>
<a id="pl.10.19"></a><var>10.19</var>and employer contribution rates must be adjusted incrementally over one or more years to <br/>
<a id="pl.10.20"></a><var>10.20</var>a level such that there remains a contribution sufficiency of no more than 0.25 percent <br/>
<a id="pl.10.21"></a><var>10.21</var>of covered payroll.<br/>
<a id="pl.10.22"></a><var>10.22</var>(d) No incremental adjustment may exceed 0.25 percent for either the general <br/>
<a id="pl.10.23"></a><var>10.23</var>employees retirement plan coordinated program employee and employer contribution rates <br/>
<a id="pl.10.24"></a><var>10.24</var>per year in which any adjustment is implemented. A general employees retirement plan <br/>
<a id="pl.10.25"></a><var>10.25</var>contribution rate adjustment under this subdivision must not be made until at least two <br/>
<a id="pl.10.26"></a><var>10.26</var>years have passed since fully implementing a previous adjustment under this subdivision.<br/>
<a id="pl.10.27"></a><var>10.27</var>(e) The general employees retirement plan contribution sufficiency or deficiency <br/>
<a id="pl.10.28"></a><var>10.28</var>determination under paragraphs (a) through (d) must be made without the inclusion of <br/>
<a id="pl.10.29"></a><var>10.29</var>the contributions to, the funded condition of, or the actuarial funding requirements of <br/>
<a id="pl.10.30"></a><var>10.30</var>the MERF division.<br/>
<a id="pl.10.31"></a><var>10.31</var>    Subd. 4. <b>Employer reporting requirements; contributions; member status.</b><br/>
<a id="pl.10.32"></a><var>10.32</var>(a) A representative authorized by the head of each department shall deduct employee <br/>
<a id="pl.10.33"></a><var>10.33</var>contributions from the salary of each employee who qualifies for membership in the <br/>
<a id="pl.10.34"></a><var>10.34</var>general employees retirement plan of the Public Employees Retirement Association or in <br/>
<a id="pl.10.35"></a><var>10.35</var>the public employees police and fire retirement plan under this chapter and remit payment <br/>
<a id="pl.10.36"></a><var>10.36</var>in a manner prescribed by the executive director for the aggregate amount of the employee <br/>
<a id="pl.11.1"></a><var>11.1</var>contributions, the employer contributions and the additional employer contributions to be <br/>
<a id="pl.11.2"></a><var>11.2</var>received within 14 calendar days. The head of each department or the person's designee <br/>
<a id="pl.11.3"></a><var>11.3</var>shall for each pay period submit to the association a salary deduction report in the format <br/>
<a id="pl.11.4"></a><var>11.4</var>prescribed by the executive director. Data required to be submitted as part of salary <br/>
<a id="pl.11.5"></a><var>11.5</var>deduction reporting must include, but are not limited to:<br/>
<a id="pl.11.6"></a><var>11.6</var>(1)  the legal names and Social Security numbers of employees who are members;<br/>
<a id="pl.11.7"></a><var>11.7</var>(2) the amount of each employee's salary deduction;<br/>
<a id="pl.11.8"></a><var>11.8</var>(3) the amount of salary from which each deduction was made;<br/>
<a id="pl.11.9"></a><var>11.9</var>(4) the beginning and ending dates of the payroll period covered and the date of <br/>
<a id="pl.11.10"></a><var>11.10</var>actual payment; and<br/>
<a id="pl.11.11"></a><var>11.11</var>(5) adjustments or corrections covering past pay periods.<br/>
<a id="pl.11.12"></a><var>11.12</var>(b) Employers must furnish the data required for enrollment for each new employee <br/>
<a id="pl.11.13"></a><var>11.13</var>who qualifies for membership in the general employees retirement plan of the Public <br/>
<a id="pl.11.14"></a><var>11.14</var>Employees Retirement Association or in the public employees police and fire retirement <br/>
<a id="pl.11.15"></a><var>11.15</var>plan in the format prescribed by the executive director. The required enrollment data <br/>
<a id="pl.11.16"></a><var>11.16</var>on new employees must be submitted to the association prior to or concurrent with the <br/>
<a id="pl.11.17"></a><var>11.17</var>submission of the initial employee salary deduction. The employer shall also report <br/>
<a id="pl.11.18"></a><var>11.18</var>to the association all member employment status changes, such as leaves of absence, <br/>
<a id="pl.11.19"></a><var>11.19</var>terminations, and death, and shall report the effective dates of those changes, on an <br/>
<a id="pl.11.20"></a><var>11.20</var>ongoing basis for the payroll cycle in which they occur. The employer shall furnish data, <br/>
<a id="pl.11.21"></a><var>11.21</var>forms, and reports as may be required by the executive director for proper administration <br/>
<a id="pl.11.22"></a><var>11.22</var>of the retirement system. Before implementing new or different computerized reporting <br/>
<a id="pl.11.23"></a><var>11.23</var>requirements, the executive director shall give appropriate advance notice to governmental <br/>
<a id="pl.11.24"></a><var>11.24</var>subdivisions to allow time for system modifications.<br/>
<a id="pl.11.25"></a><var>11.25</var>(c) Notwithstanding paragraph (a), the association executive director may provide <br/>
<a id="pl.11.26"></a><var>11.26</var>for less frequent reporting and payments for small employers.<br/>
<a id="pl.11.27"></a><var>11.27</var>    Subd. 7. <b>Adjustment for erroneous receipts or disbursements.</b> (a) Except <br/>
<a id="pl.11.28"></a><var>11.28</var>as provided in paragraph (b), erroneous employee deductions and erroneous employer <br/>
<a id="pl.11.29"></a><var>11.29</var>contributions and additional employer contributions to the general employees retirement <br/>
<a id="pl.11.30"></a><var>11.30</var>plan of the Public Employees Retirement Association or to the public employees police <br/>
<a id="pl.11.31"></a><var>11.31</var>and fire retirement plan for a person, who otherwise does not qualify for membership <br/>
<a id="pl.11.32"></a><var>11.32</var>under this chapter, are considered:<br/>
<a id="pl.11.33"></a><var>11.33</var>(1) valid if the initial erroneous deduction began before January 1, 1990. Upon <br/>
<a id="pl.11.34"></a><var>11.34</var>determination of the error by the association, the person may continue membership in the <br/>
<a id="pl.11.35"></a><var>11.35</var>association while employed in the same position for which erroneous deductions were <br/>
<a id="pl.12.1"></a><var>12.1</var>taken, or file a written election to terminate membership and apply for a refund upon <br/>
<a id="pl.12.2"></a><var>12.2</var>termination of public service or defer an annuity under section 
         <statute_ref>353.34</statute_ref>; or <br/>
<a id="pl.12.3"></a><var>12.3</var>(2) invalid, if the initial erroneous employee deduction began on or after January 1, <br/>
<a id="pl.12.4"></a><var>12.4</var>1990. Upon determination of the error, the association shall refund all erroneous employee <br/>
<a id="pl.12.5"></a><var>12.5</var>deductions and all erroneous employer contributions as specified in paragraph (e). No <br/>
<a id="pl.12.6"></a><var>12.6</var>person may claim a right to continued or past membership in the association based on <br/>
<a id="pl.12.7"></a><var>12.7</var>erroneous deductions which began on or after January 1, 1990. <br/>
<a id="pl.12.8"></a><var>12.8</var>(b) Erroneous deductions taken from the salary of a person who did not qualify for <br/>
<a id="pl.12.9"></a><var>12.9</var>membership in the general employees retirement plan of the Public Employees Retirement <br/>
<a id="pl.12.10"></a><var>12.10</var>Association or in the public employees police and fire retirement plan by virtue of <br/>
<a id="pl.12.11"></a><var>12.11</var>concurrent employment before July 1, 1978, which required contributions to another <br/>
<a id="pl.12.12"></a><var>12.12</var>retirement fund or relief association established for the benefit of officers and employees <br/>
<a id="pl.12.13"></a><var>12.13</var>of a governmental subdivision, are invalid. Upon discovery of the error, the association <br/>
<a id="pl.12.14"></a><var>12.14</var>shall remove all invalid service and, upon termination of public service, the association <br/>
<a id="pl.12.15"></a><var>12.15</var>shall refund all erroneous employee deductions to the person, with interest as determined <br/>
<a id="pl.12.16"></a><var>12.16</var>under section 
         <statute_ref>353.34, subdivision 2</statute_ref>, and all erroneous employer contributions without <br/>
<a id="pl.12.17"></a><var>12.17</var>interest to the employer. This paragraph has both retroactive and prospective application. <br/>
<a id="pl.12.18"></a><var>12.18</var>(c) Adjustments to correct employer contributions and employee deductions taken <br/>
<a id="pl.12.19"></a><var>12.19</var>in error from amounts which are not salary under section 
         <statute_ref>353.01, subdivision 10</statute_ref>, must <br/>
<a id="pl.12.20"></a><var>12.20</var>be made as specified in paragraph (e). The period of adjustment must be limited to the <br/>
<a id="pl.12.21"></a><var>12.21</var>fiscal year in which the error is discovered by the association and the immediate two <br/>
<a id="pl.12.22"></a><var>12.22</var>preceding fiscal years. <br/>
<a id="pl.12.23"></a><var>12.23</var>(d) If there is evidence of fraud or other misconduct on the part of the employee or <br/>
<a id="pl.12.24"></a><var>12.24</var>the employer, the board of trustees may authorize adjustments to the account of a member <br/>
<a id="pl.12.25"></a><var>12.25</var>or former member to correct erroneous employee deductions and employer contributions <br/>
<a id="pl.12.26"></a><var>12.26</var>on invalid salary and the recovery of any overpayments for a period longer than provided <br/>
<a id="pl.12.27"></a><var>12.27</var>for under paragraph (c).<br/>
<a id="pl.12.28"></a><var>12.28</var>(e) Upon discovery of the receipt of erroneous employee deductions and employer <br/>
<a id="pl.12.29"></a><var>12.29</var>contributions under paragraph (a), clause (2), or paragraph (c), the association must require <br/>
<a id="pl.12.30"></a><var>12.30</var>the employer to discontinue the erroneous employee deductions and erroneous employer <br/>
<a id="pl.12.31"></a><var>12.31</var>contributions reported on behalf of a member. Upon discontinuation, the association must:<br/>
<a id="pl.12.32"></a><var>12.32</var>(1) for a member, provide a refund or credit to the employer in the amount of the <br/>
<a id="pl.12.33"></a><var>12.33</var>invalid employee deductions with interest on the invalid employee deductions at the rate <br/>
<a id="pl.12.34"></a><var>12.34</var>specified under section 
         <statute_ref>353.34, subdivision 2</statute_ref>, from the received date of each invalid salary <br/>
<a id="pl.12.35"></a><var>12.35</var>transaction through the date the credit or refund is made; and the employer must pay the <br/>
<a id="pl.12.36"></a><var>12.36</var>refunded employee deductions plus interest to the member;<br/>
<a id="pl.13.1"></a><var>13.1</var>(2) for a former member who:<br/>
<a id="pl.13.2"></a><var>13.2</var>(i) is not receiving a retirement annuity or benefit, return the erroneous employee <br/>
<a id="pl.13.3"></a><var>13.3</var>deductions to the former member through a refund with interest at the rate specified under <br/>
<a id="pl.13.4"></a><var>13.4</var>section 
         <statute_ref>353.34, subdivision 2</statute_ref>, from the received date of each invalid salary transaction <br/>
<a id="pl.13.5"></a><var>13.5</var>through the date the credit or refund is made; or<br/>
<a id="pl.13.6"></a><var>13.6</var>(ii) is receiving a retirement annuity or disability benefit, or a person who is <br/>
<a id="pl.13.7"></a><var>13.7</var>receiving an optional annuity or survivor benefit, for whom it has been determined an <br/>
<a id="pl.13.8"></a><var>13.8</var>overpayment must be recovered, adjust the payment amount and recover the overpayments <br/>
<a id="pl.13.9"></a><var>13.9</var>as provided under this section; and<br/>
<a id="pl.13.10"></a><var>13.10</var>(3) return the invalid employer contributions reported on behalf of a member or <br/>
<a id="pl.13.11"></a><var>13.11</var>former member to the employer by providing a credit against future contributions payable <br/>
<a id="pl.13.12"></a><var>13.12</var>by the employer.<br/>
<a id="pl.13.13"></a><var>13.13</var>(f) In the event that a salary warrant or check from which a deduction for the <br/>
<a id="pl.13.14"></a><var>13.14</var>retirement fund was taken has been canceled or the amount of the warrant or check <br/>
<a id="pl.13.15"></a><var>13.15</var>returned to the funds of the department making the payment, a refund of the sum <br/>
<a id="pl.13.16"></a><var>13.16</var>deducted, or any portion of it that is required to adjust the deductions, must be made <br/>
<a id="pl.13.17"></a><var>13.17</var>to the department or institution.<br/>
<a id="pl.13.18"></a><var>13.18</var>(g) If the accrual date of any retirement annuity, survivor benefit, or disability benefit <br/>
<a id="pl.13.19"></a><var>13.19</var>is within the limitation period specified in paragraph (c), and an overpayment has resulted <br/>
<a id="pl.13.20"></a><var>13.20</var>by using invalid service or salary, or due to any erroneous calculation procedure, the <br/>
<a id="pl.13.21"></a><var>13.21</var>association must recalculate the annuity or benefit payable and recover any overpayment <br/>
<a id="pl.13.22"></a><var>13.22</var>as provided under subdivision 7b.<br/>
<a id="pl.13.23"></a><var>13.23</var>(h) Notwithstanding the provisions of this subdivision, the association may apply <br/>
<a id="pl.13.24"></a><var>13.24</var>the Revenue Procedures defined in the federal Internal Revenue Service Employee Plans <br/>
<a id="pl.13.25"></a><var>13.25</var>Compliance Resolution System and not issue a refund of erroneous employee deductions <br/>
<a id="pl.13.26"></a><var>13.26</var>and employer contributions or not recover a small overpayment of benefits if the cost to <br/>
<a id="pl.13.27"></a><var>13.27</var>correct the error would exceed the amount of the member refund or overpayment.<br/>
<a id="pl.13.28"></a><var>13.28</var>(i) Any fees or penalties assessed by the federal Internal Revenue Service for any <br/>
<a id="pl.13.29"></a><var>13.29</var>failure by an employer to follow the statutory requirements for reporting eligible members <br/>
<a id="pl.13.30"></a><var>13.30</var>and salary must be paid by the employer.<br/>
<a id="pl.13.31"></a><var>13.31</var>    Subd. 7a. <b>Deductions or contributions transmitted by error.</b> (a) If employee <br/>
<a id="pl.13.32"></a><var>13.32</var>deductions and employer contributions under this section, section 353.50, 353.65, or <br/>
<a id="pl.13.33"></a><var>13.33</var>353E.03 were erroneously transmitted to the association, but should have been transmitted <br/>
<a id="pl.13.34"></a><var>13.34</var>to another Minnesota public pension plan, the executive director shall transfer the <br/>
<a id="pl.13.35"></a><var>13.35</var>erroneous employee deductions and employer contributions to the appropriate retirement <br/>
<a id="pl.14.1"></a><var>14.1</var>fund or individual account, as applicable, without interest. The time limitations specified <br/>
<a id="pl.14.2"></a><var>14.2</var>in subdivisions 7 and 12 do not apply.<br/>
<a id="pl.14.3"></a><var>14.3</var>(b) For purposes of this subdivision, a Minnesota public pension plan means a <br/>
<a id="pl.14.4"></a><var>14.4</var>plan specified in section 
         <statute_ref>356.30, subdivision 3</statute_ref>, or the plans governed by chapters 353D <br/>
<a id="pl.14.5"></a><var>14.5</var>and 354B. <br/>
<a id="pl.14.6"></a><var>14.6</var>(c) A potential transfer under paragraph (a) that is reasonably determined to cause <br/>
<a id="pl.14.7"></a><var>14.7</var>the plan to fail to be a qualified plan under section 401(a) of the federal Internal Revenue <br/>
<a id="pl.14.8"></a><var>14.8</var>Code, as amended, must not be made by the executive director of the association. Within <br/>
<a id="pl.14.9"></a><var>14.9</var>30 days after being notified by the Public Employees Retirement Association of an <br/>
<a id="pl.14.10"></a><var>14.10</var>unmade potential transfer under this paragraph, the employer of the affected person <br/>
<a id="pl.14.11"></a><var>14.11</var>must transmit an amount representing the applicable salary deductions and employer <br/>
<a id="pl.14.12"></a><var>14.12</var>contributions, without interest, to the retirement fund of the appropriate Minnesota public <br/>
<a id="pl.14.13"></a><var>14.13</var>pension plan, or to the applicable individual account if the proper coverage is by a defined <br/>
<a id="pl.14.14"></a><var>14.14</var>contribution plan. The association must provide the employing unit a credit for the amount <br/>
<a id="pl.14.15"></a><var>14.15</var>of the erroneous salary deductions and employer contributions against future contributions <br/>
<a id="pl.14.16"></a><var>14.16</var>from the employer. If the employing unit receives a credit under this paragraph, the <br/>
<a id="pl.14.17"></a><var>14.17</var>employing unit is responsible for refunding to the applicable employee any amount that <br/>
<a id="pl.14.18"></a><var>14.18</var>had been erroneously deducted from the person's salary.<br/>
<a id="pl.14.19"></a><var>14.19</var>    Subd. 7b. <b>Recovery of overpayments.</b> (a) In the event the executive director <br/>
<a id="pl.14.20"></a><var>14.20</var>determines that an overpaid annuity or benefit that from the general employees retirement <br/>
<a id="pl.14.21"></a><var>14.21</var>plan of the Public Employees Retirement Association, the public employees police and <br/>
<a id="pl.14.22"></a><var>14.22</var>fire retirement plan, or the local government correctional employees retirement plan is <br/>
<a id="pl.14.23"></a><var>14.23</var>the result of invalid salary included in the average salary used to calculate the payment <br/>
<a id="pl.14.24"></a><var>14.24</var>amount must be recovered, the association must determine the amount of the employee <br/>
<a id="pl.14.25"></a><var>14.25</var>deductions taken in error on the invalid salary, with interest determined in the manner <br/>
<a id="pl.14.26"></a><var>14.26</var>provided for a former member under subdivision 7, paragraph (e), clause (2), item (i), <br/>
<a id="pl.14.27"></a><var>14.27</var>and must subtract that amount from the total annuity or benefit overpayment, and the <br/>
<a id="pl.14.28"></a><var>14.28</var>remaining balance of the overpaid annuity or benefit, if any, must be recovered.<br/>
<a id="pl.14.29"></a><var>14.29</var>(b) If the invalid employee deductions plus interest exceed the amount of the <br/>
<a id="pl.14.30"></a><var>14.30</var>overpaid benefits, the balance must be refunded to the person to whom the benefit or <br/>
<a id="pl.14.31"></a><var>14.31</var>annuity is being paid.<br/>
<a id="pl.14.32"></a><var>14.32</var>(c) Any invalid employer contributions reported on the invalid salary must be <br/>
<a id="pl.14.33"></a><var>14.33</var>credited to the employer as provided in subdivision 7, paragraph (e).<br/>
<a id="pl.14.34"></a><var>14.34</var>(d) If a member or former member, who is receiving a retirement annuity or <br/>
<a id="pl.14.35"></a><var>14.35</var>disability benefit for which an overpayment is being recovered, dies before recovery of <br/>
<a id="pl.14.36"></a><var>14.36</var>the overpayment is completed and a joint and survivor optional annuity is payable, the <br/>
<a id="pl.15.1"></a><var>15.1</var>remaining balance of the overpaid annuity or benefit must continue to be recovered from <br/>
<a id="pl.15.2"></a><var>15.2</var>the payment to the optional annuity beneficiary.<br/>
<a id="pl.15.3"></a><var>15.3</var>(e) If the association finds that a refund has been overpaid to a former member, <br/>
<a id="pl.15.4"></a><var>15.4</var>beneficiary or other person, the amount of the overpayment must be recovered for the <br/>
<a id="pl.15.5"></a><var>15.5</var>benefit of the respective retirement fund or account.<br/>
<a id="pl.15.6"></a><var>15.6</var>(f) The board of trustees shall adopt policies directing the period of time and manner <br/>
<a id="pl.15.7"></a><var>15.7</var>for the collection of any overpaid retirement or optional annuity, and survivor or disability <br/>
<a id="pl.15.8"></a><var>15.8</var>benefit, or a refund that the executive director determines must be recovered as provided <br/>
<a id="pl.15.9"></a><var>15.9</var>under this section.<br/>
<a id="pl.15.10"></a><var>15.10</var>    Subd. 7c. <b>Limitation on additional plan coverage.</b> No deductions for any plan <br/>
<a id="pl.15.11"></a><var>15.11</var>under this chapter or chapter 353E may be taken from the salary of a person who is <br/>
<a id="pl.15.12"></a><var>15.12</var>employed by a governmental subdivision under section 
         <statute_ref>353.01, subdivision 6</statute_ref>, and who is <br/>
<a id="pl.15.13"></a><var>15.13</var>receiving disability benefit payments from any plan under this chapter or chapter 353E <br/>
<a id="pl.15.14"></a><var>15.14</var>unless the person waives the right to further disability benefit payments.<br/>
<a id="pl.15.15"></a><var>15.15</var>    Subd. 8. <b>District court reporters; salary deductions.</b> Deductions from the salary <br/>
<a id="pl.15.16"></a><var>15.16</var>of a district court reporter in a judicial district consisting of two or more counties shall be <br/>
<a id="pl.15.17"></a><var>15.17</var>made by the auditor of the county in which the bond and official oath of such district court <br/>
<a id="pl.15.18"></a><var>15.18</var>reporter are filed, from the portion of salary paid by such county.<br/>
<a id="pl.15.19"></a><var>15.19</var>    Subd. 9. <b>Fee officers; contributions; obligations of employers.</b> Any appointed or <br/>
<a id="pl.15.20"></a><var>15.20</var>elected officer of a governmental subdivision who was or is a "public employee" within <br/>
<a id="pl.15.21"></a><var>15.21</var>the meaning of section 
         <statute_ref>353.01</statute_ref> and was or is a member of the fund general employees <br/>
<a id="pl.15.22"></a><var>15.22</var>retirement plan of the Public Employees Retirement Association and whose salary <br/>
<a id="pl.15.23"></a><var>15.23</var>was or is paid in whole or in part from revenue derived by fees and assessments, shall <br/>
<a id="pl.15.24"></a><var>15.24</var>pay employee contribution in the amount, at the time, and in the manner provided in <br/>
<a id="pl.15.25"></a><var>15.25</var>subdivisions 2 and 4. This subdivision shall does not apply to district court reporters. <br/>
<a id="pl.15.26"></a><var>15.26</var>The employer contribution as provided in subdivision 3, and the additional employer <br/>
<a id="pl.15.27"></a><var>15.27</var>contribution as provided in subdivision 3a,  with respect to such service shall must be <br/>
<a id="pl.15.28"></a><var>15.28</var>paid by the governmental subdivision. This subdivision shall have has both retroactive <br/>
<a id="pl.15.29"></a><var>15.29</var>and prospective application as to all such members; and every employing governmental <br/>
<a id="pl.15.30"></a><var>15.30</var>subdivision is deemed liable, retroactively and prospectively, for all employer and <br/>
<a id="pl.15.31"></a><var>15.31</var>additional employer contributions for every such member of the general employees <br/>
<a id="pl.15.32"></a><var>15.32</var>retirement plan in its employ. Delinquencies under this section shall be are governed <br/>
<a id="pl.15.33"></a><var>15.33</var>in all respects by section 
         <statute_ref>353.28</statute_ref>. <br/>
<a id="pl.15.34"></a><var>15.34</var>    Subd. 10. <b>Employer exclusion reports.</b> The head of a department shall annually <br/>
<a id="pl.15.35"></a><var>15.35</var>furnish the executive director with an exclusion report listing only those employees in <br/>
<a id="pl.15.36"></a><var>15.36</var>potentially PERA general employees retirement plan-eligible positions who were not <br/>
<a id="pl.16.1"></a><var>16.1</var>reported as members of the association general employees retirement plan and who worked <br/>
<a id="pl.16.2"></a><var>16.2</var>during the school year for school employees and calendar year for nonschool employees. <br/>
<a id="pl.16.3"></a><var>16.3</var>The department head must certify the accuracy and completeness of the exclusion report <br/>
<a id="pl.16.4"></a><var>16.4</var>to the association. The executive director shall prescribe the manner and forms, including <br/>
<a id="pl.16.5"></a><var>16.5</var>standardized exclusion codes, to be used by a governmental subdivision in preparing and <br/>
<a id="pl.16.6"></a><var>16.6</var>filing exclusion reports. The executive director shall also check the exclusion report to <br/>
<a id="pl.16.7"></a><var>16.7</var>ascertain whether any omissions have been made by a department head in the reporting <br/>
<a id="pl.16.8"></a><var>16.8</var>of new public employees for membership. The executive director may delegate an <br/>
<a id="pl.16.9"></a><var>16.9</var>association employee under section 
         <statute_ref>353.03, subdivision 3a</statute_ref>, paragraph (b), clause (5), to <br/>
<a id="pl.16.10"></a><var>16.10</var>conduct a field audit to review the payroll records of a governmental subdivision. <br/>
<a id="pl.16.11"></a><var>16.11</var>    Subd. 11. <b>Employers; required to furnish requested information.</b> (a) All <br/>
<a id="pl.16.12"></a><var>16.12</var>governmental subdivisions shall furnish promptly such other information relative to the <br/>
<a id="pl.16.13"></a><var>16.13</var>employment status of all employees or former employees, including, but not limited to, <br/>
<a id="pl.16.14"></a><var>16.14</var>payroll abstracts pertaining to all past and present employees, as may be requested by the <br/>
<a id="pl.16.15"></a><var>16.15</var>executive director, including schedules of salaries applicable to various categories of <br/>
<a id="pl.16.16"></a><var>16.16</var>employment.<br/>
<a id="pl.16.17"></a><var>16.17</var>(b) In the event payroll abstract records have been lost or destroyed, for whatever <br/>
<a id="pl.16.18"></a><var>16.18</var>reason or in whatever manner, so that such schedules of salaries cannot be furnished <br/>
<a id="pl.16.19"></a><var>16.19</var>therefrom, the employing governmental subdivision, in lieu thereof, shall furnish to the <br/>
<a id="pl.16.20"></a><var>16.20</var>association an estimate of the earnings of any employee or former employee for any <br/>
<a id="pl.16.21"></a><var>16.21</var>period as may be requested by the executive director. If the association is provided a <br/>
<a id="pl.16.22"></a><var>16.22</var>schedule of estimated earnings, the executive director is authorized to use the same as a <br/>
<a id="pl.16.23"></a><var>16.23</var>basis for making whatever computations might be necessary for determining obligations <br/>
<a id="pl.16.24"></a><var>16.24</var>of the employee and employer to the general employees retirement fund plan, the public <br/>
<a id="pl.16.25"></a><var>16.25</var>employees police and fire retirement plan, or the local government correctional employees <br/>
<a id="pl.16.26"></a><var>16.26</var>retirement plan. If estimates are not furnished by the employer at the request of the <br/>
<a id="pl.16.27"></a><var>16.27</var>executive director, the executive director may estimate the obligations of the employee <br/>
<a id="pl.16.28"></a><var>16.28</var>and employer to the general employees retirement fund, the public employees police and <br/>
<a id="pl.16.29"></a><var>16.29</var>fire retirement plan, or the local government correctional employees retirement plan based <br/>
<a id="pl.16.30"></a><var>16.30</var>upon those records that are in its possession.<br/>
<a id="pl.16.31"></a><var>16.31</var>    Subd. 12. <b>Omitted salary deductions; obligations.</b> (a) In the case of omission <br/>
<a id="pl.16.32"></a><var>16.32</var>of required deductions for the general employees retirement plan, the public employees <br/>
<a id="pl.16.33"></a><var>16.33</var>police and fire retirement plan, or the local government correctional employees retirement <br/>
<a id="pl.16.34"></a><var>16.34</var>plan from the salary of an employee, the department head or designee shall immediately, <br/>
<a id="pl.16.35"></a><var>16.35</var>upon discovery, report the employee for membership and deduct the employee deductions <br/>
<a id="pl.16.36"></a><var>16.36</var>under subdivision 4 during the current pay period or during the pay period immediately <br/>
<a id="pl.17.1"></a><var>17.1</var>following the discovery of the omission. Payment for the omitted obligations may only be <br/>
<a id="pl.17.2"></a><var>17.2</var>made in accordance with reporting procedures and methods established by the executive <br/>
<a id="pl.17.3"></a><var>17.3</var>director.<br/>
<a id="pl.17.4"></a><var>17.4</var>(b) When the entire omission period of an employee does not exceed 60 days, the <br/>
<a id="pl.17.5"></a><var>17.5</var>governmental subdivision may report and submit payment of the omitted employee <br/>
<a id="pl.17.6"></a><var>17.6</var>deductions and the omitted employer contributions through the reporting processes under <br/>
<a id="pl.17.7"></a><var>17.7</var>subdivision 4.<br/>
<a id="pl.17.8"></a><var>17.8</var>(c) When the omission period of an employee exceeds 60 days, the governmental <br/>
<a id="pl.17.9"></a><var>17.9</var>subdivision shall furnish to the association sufficient data and documentation upon which <br/>
<a id="pl.17.10"></a><var>17.10</var>the obligation for omitted employee and employer contributions can be calculated. <br/>
<a id="pl.17.11"></a><var>17.11</var>The omitted employee deductions must be deducted from the employee's subsequent <br/>
<a id="pl.17.12"></a><var>17.12</var>salary payment or payments and remitted to the association for deposit in the applicable <br/>
<a id="pl.17.13"></a><var>17.13</var>retirement fund. The employee shall pay omitted employee deductions due for the 60 <br/>
<a id="pl.17.14"></a><var>17.14</var>days prior to the end of the last pay period in the omission period during which salary <br/>
<a id="pl.17.15"></a><var>17.15</var>was earned. The employer shall pay any remaining omitted employee deductions and any <br/>
<a id="pl.17.16"></a><var>17.16</var>omitted employer contributions, plus cumulative interest at an annual rate of 8.5 percent <br/>
<a id="pl.17.17"></a><var>17.17</var>compounded annually, from the date or dates each omitted employee contribution was <br/>
<a id="pl.17.18"></a><var>17.18</var>first payable.<br/>
<a id="pl.17.19"></a><var>17.19</var>(d) An employer shall not hold an employee liable for omitted employee deductions <br/>
<a id="pl.17.20"></a><var>17.20</var>beyond the pay period dates under paragraph (c), nor attempt to recover from the employee <br/>
<a id="pl.17.21"></a><var>17.21</var>those employee deductions paid by the employer on behalf of the employee. Omitted <br/>
<a id="pl.17.22"></a><var>17.22</var>deductions due under paragraph (c) which are not paid by the employee constitute a <br/>
<a id="pl.17.23"></a><var>17.23</var>liability of the employer that failed to deduct the omitted deductions from the employee's <br/>
<a id="pl.17.24"></a><var>17.24</var>salary. The employer shall make payment with interest at an annual rate of 8.5 percent <br/>
<a id="pl.17.25"></a><var>17.25</var>compounded annually. Omitted employee deductions are no longer due if an employee <br/>
<a id="pl.17.26"></a><var>17.26</var>terminates public service before making payment of omitted employee deductions to <br/>
<a id="pl.17.27"></a><var>17.27</var>the association, but the employer remains liable to pay omitted employer contributions <br/>
<a id="pl.17.28"></a><var>17.28</var>plus interest at an annual rate of 8.5 percent compounded annually from the date the <br/>
<a id="pl.17.29"></a><var>17.29</var>contributions were first payable.<br/>
<a id="pl.17.30"></a><var>17.30</var>(e) The association may not commence action for the recovery of omitted employee <br/>
<a id="pl.17.31"></a><var>17.31</var>deductions and employer contributions after the expiration of three calendar years after <br/>
<a id="pl.17.32"></a><var>17.32</var>the calendar year in which the contributions and deductions were omitted. Except as <br/>
<a id="pl.17.33"></a><var>17.33</var>provided under paragraph (b), no payment may be made or accepted unless the association <br/>
<a id="pl.17.34"></a><var>17.34</var>has already commenced action for recovery of omitted deductions. An action for recovery <br/>
<a id="pl.17.35"></a><var>17.35</var>commences on the date of the mailing of any written correspondence from the association <br/>
<a id="pl.18.1"></a><var>18.1</var>requesting information from the governmental subdivision upon which to determine <br/>
<a id="pl.18.2"></a><var>18.2</var>whether or not omitted deductions occurred.<br/>
<a id="pl.18.3"></a><var>18.3</var>    Subd. 12a. <b>Terminated employees: omitted deductions.</b> A terminated employee <br/>
<a id="pl.18.4"></a><var>18.4</var>who was a member of the general employees retirement plan of the Public Employees <br/>
<a id="pl.18.5"></a><var>18.5</var>Retirement Association, the public employees police and fire retirement plan, or the local <br/>
<a id="pl.18.6"></a><var>18.6</var>government correctional employees retirement plan and who has a period of employment <br/>
<a id="pl.18.7"></a><var>18.7</var>in which previously omitted employer contributions were made under subdivision 12 <br/>
<a id="pl.18.8"></a><var>18.8</var>but for whom no, or only partial, omitted employee contributions have been made, or <br/>
<a id="pl.18.9"></a><var>18.9</var>a member who had prior coverage in the association for which previously omitted <br/>
<a id="pl.18.10"></a><var>18.10</var>employer contributions were made under subdivision 12 but who terminated service <br/>
<a id="pl.18.11"></a><var>18.11</var>before required omitted employee deductions could be withheld from salary, may pay the <br/>
<a id="pl.18.12"></a><var>18.12</var>omitted employee deductions for the period on which omitted employer contributions <br/>
<a id="pl.18.13"></a><var>18.13</var>were previously paid plus interest at an annual rate of 8.5 percent compounded annually. <br/>
<a id="pl.18.14"></a><var>18.14</var>A terminated employee may pay the omitted employee deductions plus interest within six <br/>
<a id="pl.18.15"></a><var>18.15</var>months of an initial notification from the association of eligibility to pay those omitted <br/>
<a id="pl.18.16"></a><var>18.16</var>deductions. If a terminated employee is reemployed in a position covered under a public <br/>
<a id="pl.18.17"></a><var>18.17</var>pension fund under section 
         <statute_ref>356.30, subdivision 3</statute_ref>, and elects to pay omitted employee <br/>
<a id="pl.18.18"></a><var>18.18</var>deductions, payment must be made no later than six months after a subsequent termination <br/>
<a id="pl.18.19"></a><var>18.19</var>of public service. <br/>
<a id="pl.18.20"></a><var>18.20</var>    Subd. 12b. <b>Terminated employees: immediate eligibility.</b> If deductions were <br/>
<a id="pl.18.21"></a><var>18.21</var>omitted from salary adjustments or final salary of a terminated employee who was a <br/>
<a id="pl.18.22"></a><var>18.22</var>member of the general employees retirement plan, the public employees police and fire <br/>
<a id="pl.18.23"></a><var>18.23</var>retirement plan, or the local government correctional employees retirement plan and who <br/>
<a id="pl.18.24"></a><var>18.24</var>is immediately eligible to draw a monthly benefit, the employer shall pay the omitted <br/>
<a id="pl.18.25"></a><var>18.25</var>employer and employer additional contributions plus interest on both the employer and <br/>
<a id="pl.18.26"></a><var>18.26</var>employee amounts due at an annual rate of 8.5 percent compounded annually. The <br/>
<a id="pl.18.27"></a><var>18.27</var>employee shall pay the employee deductions within six months of an initial notification <br/>
<a id="pl.18.28"></a><var>18.28</var>from the association of eligibility to pay omitted deductions or the employee forfeits <br/>
<a id="pl.18.29"></a><var>18.29</var>the right to make the payment.<br/>
<a id="pl.18.30"></a><var>18.30</var>    Subd. 13. <b>Certain warrants canceled.</b> A warrant payable from the general <br/>
<a id="pl.18.31"></a><var>18.31</var>employees retirement fund, the public employees police and fire retirement fund, or the <br/>
<a id="pl.18.32"></a><var>18.32</var>local government correctional retirement fund remaining unpaid for a period of six <br/>
<a id="pl.18.33"></a><var>18.33</var>months must be canceled into the applicable retirement fund and not canceled into the <br/>
<a id="pl.18.34"></a><var>18.34</var>state's general fund.<br/>
<a id="pl.18.35"></a><var>18.35</var>    Subd. 14. <b>Periods before initial coverage date.</b> (a) If an entity is determined to <br/>
<a id="pl.18.36"></a><var>18.36</var>be a governmental subdivision due to receipt of a written notice of eligibility from the <br/>
<a id="pl.19.1"></a><var>19.1</var>association with respect to the general employees retirement plan, the public employees <br/>
<a id="pl.19.2"></a><var>19.2</var>police and fire retirement plan, or the local government correctional retirement plan, that <br/>
<a id="pl.19.3"></a><var>19.3</var>employer and its employees are subject to the requirements of subdivision 12, effective <br/>
<a id="pl.19.4"></a><var>19.4</var>retroactively to the date that the executive director of the association determines that <br/>
<a id="pl.19.5"></a><var>19.5</var>the entity first met the definition of a governmental subdivision, if that date predates <br/>
<a id="pl.19.6"></a><var>19.6</var>the notice of eligibility.<br/>
<a id="pl.19.7"></a><var>19.7</var>    (b) If the retroactive time period under paragraph (a) exceeds three years, an <br/>
<a id="pl.19.8"></a><var>19.8</var>employee is authorized to purchase service credit in the applicable Public Employees <br/>
<a id="pl.19.9"></a><var>19.9</var>Retirement Association plan for the portion of the period in excess of three years, by <br/>
<a id="pl.19.10"></a><var>19.10</var>making payment under section 
         <statute_ref>356.551</statute_ref>. Notwithstanding any provision of section <br/>
<statute_ref><a id="pl.19.11"></a><var>19.11</var>356.551, subdivision 2
         </statute_ref>, to the contrary, regarding time limits on purchases, payment of a <br/>
<a id="pl.19.12"></a><var>19.12</var>service credit purchase amount may be made anytime before the termination of public <br/>
<a id="pl.19.13"></a><var>19.13</var>service.<br/>
<a id="pl.19.14"></a><var>19.14</var>    (c) This subdivision does not apply if the applicable employment under paragraph <br/>
<a id="pl.19.15"></a><var>19.15</var>(a) included coverage by any public or private defined benefit or defined contribution <br/>
<a id="pl.19.16"></a><var>19.16</var>retirement plan, other than a volunteer firefighters relief association. If this paragraph <br/>
<a id="pl.19.17"></a><var>19.17</var>applies, an individual is prohibited from purchasing service credit from a Public Employees <br/>
<a id="pl.19.18"></a><var>19.18</var>Retirement Association plan for any period or periods specified in paragraph (a).<br/>
<br/>
<a id="bill.1.8.0"></a><a id="pl.19.19"></a><var>19.19</var>    Sec. 8. Minnesota Statutes 2008, section 353.34, subdivision 1, is amended to read:<br/>
<a id="pl.19.20"></a><var>19.20</var>    Subdivision 1. <b>Refund or deferred annuity.</b> (a) A former member is entitled <br/>
<a id="pl.19.21"></a><var>19.21</var>to a refund of accumulated employee deductions under subdivision 2, or to a deferred <br/>
<a id="pl.19.22"></a><var>19.22</var>annuity under subdivision 3. Application for a refund may not be made before the date of <br/>
<a id="pl.19.23"></a><var>19.23</var>termination of public service. Except as specified in paragraph (b), a refund must be paid <br/>
<a id="pl.19.24"></a><var>19.24</var>within 120 days following receipt of the application unless the applicant has again become <br/>
<a id="pl.19.25"></a><var>19.25</var>a public employee required to be covered by the association.<br/>
<a id="pl.19.26"></a><var>19.26</var>(b) If an individual was placed on layoff under section 
         <statute_ref>353.01</statute_ref>, subdivision 12 or 12c, <br/>
<a id="pl.19.27"></a><var>19.27</var>a refund is not payable before termination of service under section 
         <statute_ref>353.01, subdivision </statute_ref> 11a. <br/>
<a id="pl.19.28"></a><var>19.28</var>(c) An individual who terminates public service covered by the Public Employees <br/>
<a id="pl.19.29"></a><var>19.29</var>Retirement Association general employees retirement plan, the MERF division, the <br/>
<a id="pl.19.30"></a><var>19.30</var>Public Employees Retirement Association police and fire retirement plan, or the public <br/>
<a id="pl.19.31"></a><var>19.31</var>employees local government corrections service retirement plan, and who is employed <br/>
<a id="pl.19.32"></a><var>19.32</var>by a different employer and who becomes an active member covered by one of the other <br/>
<a id="pl.19.33"></a><var>19.33</var>two plans, may receive a refund of employee contributions plus six percent interest <br/>
<a id="pl.19.34"></a><var>19.34</var>compounded annually from the plan from which the member terminated service.<br/>
<br/>
<a id="bill.1.9.0"></a><a id="pl.20.1"></a><var>20.1</var>    Sec. 9. Minnesota Statutes 2008, section 353.34, subdivision 6, is amended to read:<br/>
<a id="pl.20.2"></a><var>20.2</var>    Subd. 6. <b>Additions to fund.</b> The board of trustees may credit to the general <br/>
<a id="pl.20.3"></a><var>20.3</var>employees retirement fund any moneys money received in the form of contributions, <br/>
<a id="pl.20.4"></a><var>20.4</var>donations, gifts, appropriations, bequests, or otherwise.<br/>
<br/>
<a id="bill.1.10.0"></a><a id="pl.20.5"></a><var>20.5</var>    Sec. 10. Minnesota Statutes 2008, section 353.37, subdivision 1, is amended to read:<br/>
<a id="pl.20.6"></a><var>20.6</var>    Subdivision 1. <b>Salary maximums.</b> (a) The annuity of a person otherwise eligible <br/>
<a id="pl.20.7"></a><var>20.7</var>for an annuity under this chapter from the general employees retirement plan of the Public <br/>
<a id="pl.20.8"></a><var>20.8</var>Employees Retirement Association, the public employees police and fire retirement plan, <br/>
<a id="pl.20.9"></a><var>20.9</var>or the local government correctional employees retirement plan must be suspended under <br/>
<a id="pl.20.10"></a><var>20.10</var>subdivision 2 or reduced under subdivision 3, whichever results in the higher annual <br/>
<a id="pl.20.11"></a><var>20.11</var>annuity amount, if the person reenters public service as a nonelective employee of a <br/>
<a id="pl.20.12"></a><var>20.12</var>governmental subdivision in a position covered by this chapter or returns to work as an <br/>
<a id="pl.20.13"></a><var>20.13</var>employee of a labor organization that represents public employees who are association <br/>
<a id="pl.20.14"></a><var>20.14</var>members under this chapter and salary for the reemployment service exceeds the annual <br/>
<a id="pl.20.15"></a><var>20.15</var>maximum earnings allowable for that age for the continued receipt of full benefit amounts <br/>
<a id="pl.20.16"></a><var>20.16</var>monthly under the federal Old Age, Survivors and Disability Insurance Program as set by <br/>
<a id="pl.20.17"></a><var>20.17</var>the secretary of health and human services under United States Code, title 42, section 403, <br/>
<a id="pl.20.18"></a><var>20.18</var>in any calendar year. If the person has not yet reached the minimum age for the receipt <br/>
<a id="pl.20.19"></a><var>20.19</var>of Social Security benefits, the maximum salary for the person is equal to the annual <br/>
<a id="pl.20.20"></a><var>20.20</var>maximum earnings allowable for the minimum age for the receipt of Social Security <br/>
<a id="pl.20.21"></a><var>20.21</var>benefits.<br/>
<a id="pl.20.22"></a><var>20.22</var>(b) The provisions of paragraph (a) do not apply to the members of the MERF <br/>
<a id="pl.20.23"></a><var>20.23</var>division.<br/>
<br/>
<a id="bill.1.11.0"></a><a id="pl.20.24"></a><var>20.24</var>    Sec. 11. Minnesota Statutes 2008, section 353.37, subdivision 2, is amended to read:<br/>
<a id="pl.20.25"></a><var>20.25</var>    Subd. 2. <b>Suspension of annuity.</b> (a) The association shall suspend the annuity on <br/>
<a id="pl.20.26"></a><var>20.26</var>the first of the month after the month in which the salary of the reemployed annuitant <br/>
<a id="pl.20.27"></a><var>20.27</var>described in subdivision 1, paragraph (a), exceeds the maximums set in subdivision 1, <br/>
<a id="pl.20.28"></a><var>20.28</var>paragraph (a), based only on those months in which the annuitant is actually employed <br/>
<a id="pl.20.29"></a><var>20.29</var>in nonelective public service in a position covered under this chapter or employment <br/>
<a id="pl.20.30"></a><var>20.30</var>with a labor organization that represents public employees who are association members <br/>
<a id="pl.20.31"></a><var>20.31</var>of a retirement plan under this chapter or chapter 353E. <br/>
<a id="pl.20.32"></a><var>20.32</var>(b) An annuitant who is elected to public office after retirement may hold that office <br/>
<a id="pl.20.33"></a><var>20.33</var>and receive an annuity otherwise payable from a retirement plan administered by the <br/>
<a id="pl.20.34"></a><var>20.34</var>association.<br/>
<br/>
<a id="bill.1.12.0"></a><a id="pl.21.1"></a><var>21.1</var>    Sec. 12. Minnesota Statutes 2008, section 353.37, subdivision 3, is amended to read:<br/>
<a id="pl.21.2"></a><var>21.2</var>    Subd. 3. <b>Reduction of annuity.</b> (a) The association shall reduce the amount <br/>
<a id="pl.21.3"></a><var>21.3</var>of the annuity of a person who has not reached the retirement age by one-half of the <br/>
<a id="pl.21.4"></a><var>21.4</var>amount in excess of the applicable reemployment income maximum under subdivision <br/>
<a id="pl.21.5"></a><var>21.5</var>1, paragraph (a).<br/>
<a id="pl.21.6"></a><var>21.6</var>(b) There is no reduction upon reemployment, regardless of income, for a person <br/>
<a id="pl.21.7"></a><var>21.7</var>who has reached the retirement age.<br/>
<br/>
<a id="bill.1.13.0"></a><a id="pl.21.8"></a><var>21.8</var>    Sec. 13. Minnesota Statutes 2008, section 353.37, subdivision 4, is amended to read:<br/>
<a id="pl.21.9"></a><var>21.9</var>    Subd. 4. <b>Resumption of annuity.</b> The association shall resume paying a full <br/>
<a id="pl.21.10"></a><var>21.10</var>annuity to the reemployed annuitant described in subdivision 1, paragraph (a), at the <br/>
<a id="pl.21.11"></a><var>21.11</var>start of each calendar year until the salary exceeds the maximums under subdivision 1, <br/>
<a id="pl.21.12"></a><var>21.12</var>paragraph (a), or on the first of the month following the termination of the employment <br/>
<a id="pl.21.13"></a><var>21.13</var>which resulted in the suspension of the annuity. The executive director may adopt policies <br/>
<a id="pl.21.14"></a><var>21.14</var>regarding the suspension and reduction of annuities under this section.<br/>
<br/>
<a id="bill.1.14.0"></a><a id="pl.21.15"></a><var>21.15</var>    Sec. 14. Minnesota Statutes 2008, section 353.37, subdivision 5, is amended to read:<br/>
<a id="pl.21.16"></a><var>21.16</var>    Subd. 5. <b>Effect on annuity.</b> Except as provided under this section, public service <br/>
<a id="pl.21.17"></a><var>21.17</var>performed by an annuitant described in subdivision 1, paragraph (a), subsequent to <br/>
<a id="pl.21.18"></a><var>21.18</var>retirement under this chapter from the general employees retirement plan, the public <br/>
<a id="pl.21.19"></a><var>21.19</var>employees police and fire retirement plan, or the local government correctional employees <br/>
<a id="pl.21.20"></a><var>21.20</var>retirement plan does not increase or decrease the amount of an annuity. The annuitant shall <br/>
<a id="pl.21.21"></a><var>21.21</var>not make any further contributions to the association's a defined benefit plan administered <br/>
<a id="pl.21.22"></a><var>21.22</var>by the association by reason of this subsequent public service.<br/>
<br/>
<a id="bill.1.15.0"></a><a id="pl.21.23"></a><var>21.23</var>    Sec. 15. Minnesota Statutes 2008, section 353.46, subdivision 2, is amended to read:<br/>
<a id="pl.21.24"></a><var>21.24</var>    Subd. 2. <b>Rights of deferred annuitant.</b> The right entitlement of a deferred <br/>
<a id="pl.21.25"></a><var>21.25</var>annuitant or other former member of the general employees retirement plan of the <br/>
<a id="pl.21.26"></a><var>21.26</var>Public Employees Retirement Association, the Minneapolis Employees Retirement Fund <br/>
<a id="pl.21.27"></a><var>21.27</var>division, the public employees police and fire retirement plan, or the local government <br/>
<a id="pl.21.28"></a><var>21.28</var>correctional employees retirement plan to receive an annuity under the law in effect at the <br/>
<a id="pl.21.29"></a><var>21.29</var>time such the person terminated public service is herein preserved; provided, however,. <br/>
<a id="pl.21.30"></a><var>21.30</var>The provisions of section 
         <statute_ref>353.71, subdivision 2</statute_ref>, as amended by Laws 1973, chapter 753 <br/>
<a id="pl.21.31"></a><var>21.31</var>shall, apply to a deferred annuitant or other former member who first begins receiving an <br/>
<a id="pl.21.32"></a><var>21.32</var>annuity after July 1, 1973.  <br/>
<br/>
<a id="bill.1.16.0"></a><a id="pl.22.1"></a><var>22.1</var>    Sec. 16. Minnesota Statutes 2008, section 353.46, subdivision 6, is amended to read:<br/>
<a id="pl.22.2"></a><var>22.2</var>    Subd. 6. <b>Computation of benefits for certain coordinated members.</b> Any <br/>
<a id="pl.22.3"></a><var>22.3</var>coordinated member of the general employees retirement plan of the Public Employees <br/>
<a id="pl.22.4"></a><var>22.4</var>Retirement Association who prior to, before July 1, 1979, was a member of the former <br/>
<a id="pl.22.5"></a><var>22.5</var>coordinated program of the former Minneapolis Municipal Employees Retirement <br/>
<a id="pl.22.6"></a><var>22.6</var>Fund and who prior to, before July 1, 1978, was a member of the basic program of the <br/>
<a id="pl.22.7"></a><var>22.7</var>Minneapolis Municipal Employees Retirement Fund shall:<br/>
<a id="pl.22.8"></a><var>22.8</var>(1) be is entitled to receive a retirement annuity when otherwise qualified, the <br/>
<a id="pl.22.9"></a><var>22.9</var>calculation of which shall must utilize the formula accrual rates specified in section <br/>
<statute_ref><a id="pl.22.10"></a><var>22.10</var>422A.15, subdivision 1
         </statute_ref>, for that portion of credited service which was rendered prior to <br/>
<a id="pl.22.11"></a><var>22.11</var>before July 1, 1978, and the formula accrual rates specified in section 
         <statute_ref>353.29, subdivision <br/>
<a id="pl.22.12"></a><var>22.12</var>3
         </statute_ref>, for the remainder of credited service, both applied to the average salary as specified <br/>
<a id="pl.22.13"></a><var>22.13</var>in section 
         <statute_ref>353.29, subdivision 2</statute_ref> 353.01, subdivision 17a. The formula accrual rates to <br/>
<a id="pl.22.14"></a><var>22.14</var>be used in calculating the retirement annuity shall must recognize the service after July <br/>
<a id="pl.22.15"></a><var>22.15</var>1, 1978 as a member of the former coordinated program of the former Minneapolis <br/>
<a id="pl.22.16"></a><var>22.16</var>Municipal Employees Retirement Fund and after July 1, 1979 as a member of the <br/>
<a id="pl.22.17"></a><var>22.17</var>general employees retirement plan of the Public Employees Retirement Association as <br/>
<a id="pl.22.18"></a><var>22.18</var>a continuation of service rendered prior to before July 1, 1978. The annuity amount <br/>
<a id="pl.22.19"></a><var>22.19</var>attributable to service as a member of the basic program of the former Minneapolis <br/>
<a id="pl.22.20"></a><var>22.20</var>Municipal Employees Retirement Fund shall be is payable by from the Minneapolis <br/>
<a id="pl.22.21"></a><var>22.21</var>Employees Retirement Fund MERF division and the annuity amount attributable to all <br/>
<a id="pl.22.22"></a><var>22.22</var>other service shall be is payable by from the general employees retirement fund of the <br/>
<a id="pl.22.23"></a><var>22.23</var>Public Employees Retirement Association;  .<br/>
<a id="pl.22.24"></a><var>22.24</var>(2) retain eligibility when otherwise qualified for a disability benefit from the <br/>
<a id="pl.22.25"></a><var>22.25</var>Minneapolis Employees Retirement Fund until July 1, 1982, notwithstanding coverage <br/>
<a id="pl.22.26"></a><var>22.26</var>by the Public Employees Retirement Association, if the member has or would, without <br/>
<a id="pl.22.27"></a><var>22.27</var>the transfer of retirement coverage from the basic program of the Minneapolis Municipal <br/>
<a id="pl.22.28"></a><var>22.28</var>Employees Retirement Fund to the coordinated program of the Minneapolis Municipal <br/>
<a id="pl.22.29"></a><var>22.29</var>Employees Retirement Fund or from the coordinated program of the Minneapolis <br/>
<a id="pl.22.30"></a><var>22.30</var>Municipal Employees Retirement Fund to the public employees retirement fund, have <br/>
<a id="pl.22.31"></a><var>22.31</var>sufficient credited service prior to January 1, 1983, to meet the minimum service <br/>
<a id="pl.22.32"></a><var>22.32</var>requirements for a disability benefit pursuant to section 
<statute_ref>422A.18</statute_ref>. The disability benefit <br/>
<a id="pl.22.33"></a><var>22.33</var>amount attributable to service as a member of the basic program of the Minneapolis <br/>
<a id="pl.22.34"></a><var>22.34</var>Municipal Employees Retirement Fund shall be payable by the Minneapolis Employees <br/>
<a id="pl.22.35"></a><var>22.35</var>Retirement Fund and the disability benefit amount attributable to all other service shall be <br/>
<a id="pl.22.36"></a><var>22.36</var>payable by the Public Employees Retirement Association.  <br/>
<br/>
<a id="bill.1.17.0"></a><a id="pl.23.1"></a><var>23.1</var>    Sec. 17. <b>[353.50] MERF CONSOLIDATION ACCOUNT; ESTABLISHMENT </b><br/>
<a id="pl.23.2"></a><var>23.2</var><b>AND OPERATION.</b><br/>
<a id="pl.23.3"></a><var>23.3</var>    Subdivision 1. <b>Administrative consolidation.</b> (a) Notwithstanding any provision <br/>
<a id="pl.23.4"></a><var>23.4</var>of this chapter or chapter 422A to the contrary, the administration of the Minneapolis <br/>
<a id="pl.23.5"></a><var>23.5</var>Employees Retirement Fund as the MERF division is transferred to the Public Employees <br/>
<a id="pl.23.6"></a><var>23.6</var>Retirement Association board of trustees. The assets, service credit, and benefit liabilities <br/>
<a id="pl.23.7"></a><var>23.7</var>of the Minneapolis Employees Retirement Fund transfer to the MERF division account <br/>
<a id="pl.23.8"></a><var>23.8</var>within the general employees retirement plan of the Public Employees Retirement <br/>
<a id="pl.23.9"></a><var>23.9</var>Association established by section 353.27, subdivision 1a, on July 1, 2010.<br/>
<a id="pl.23.10"></a><var>23.10</var>(b) The creation of the MERF division must not be construed to alter the Social <br/>
<a id="pl.23.11"></a><var>23.11</var>Security or Medicare coverage of any member of the former Minneapolis Employees <br/>
<a id="pl.23.12"></a><var>23.12</var>Retirement Fund on June 29, 2010, while employed in a position covered under the MERF <br/>
<a id="pl.23.13"></a><var>23.13</var>division of the Public Employees Retirement Association.<br/>
<a id="pl.23.14"></a><var>23.14</var>    Subd. 2. <b>Membership transfer.</b> Effective June 30, 2010, the active, inactive, and <br/>
<a id="pl.23.15"></a><var>23.15</var>retired members of the Minneapolis Employees Retirement Fund are transferred to the <br/>
<a id="pl.23.16"></a><var>23.16</var>MERF division administered by the Public Employees Retirement Association and are no <br/>
<a id="pl.23.17"></a><var>23.17</var>longer members of the Minneapolis Employees Retirement Fund.<br/>
<a id="pl.23.18"></a><var>23.18</var>    Subd. 3. <b>Service credit and benefit liability transfer.</b> (a) All allowable service <br/>
<a id="pl.23.19"></a><var>23.19</var>credit and salary credit of the members of the  Minneapolis Employees Retirement Fund <br/>
<a id="pl.23.20"></a><var>23.20</var>as specified in the records of the Minneapolis Employees Retirement Fund through June <br/>
<a id="pl.23.21"></a><var>23.21</var>30, 2010, are transferred to the MERF division of the Public Employees Retirement <br/>
<a id="pl.23.22"></a><var>23.22</var>Association and are credited by the MERF division. Annuities or benefits of persons <br/>
<a id="pl.23.23"></a><var>23.23</var>who are active members of the former Minneapolis Employees Retirement Fund on <br/>
<a id="pl.23.24"></a><var>23.24</var>June 30, 2010, must be calculated under Minnesota Statutes 2008, sections 422A.11; <br/>
<a id="pl.23.25"></a><var>23.25</var>422A.12; 422A.13; 422A.14; 422A.15; 422A.151; 422A.155; 422A.156; 422A.16; <br/>
<a id="pl.23.26"></a><var>23.26</var>422A.17; 422A.18; 422A.19; 422A.20; and 422A.23, but are only eligible for automatic <br/>
<a id="pl.23.27"></a><var>23.27</var>postretirement adjustments after December 31, 2010, under section 356.415.<br/>
<a id="pl.23.28"></a><var>23.28</var>(b) The liability for the payment of annuities and benefits of the Minneapolis <br/>
<a id="pl.23.29"></a><var>23.29</var>Employees Retirement Fund retirees and benefit recipients as specified in the records <br/>
<a id="pl.23.30"></a><var>23.30</var>of the Minneapolis Employees Retirement Fund on June 29, 2010, is transferred to the <br/>
<a id="pl.23.31"></a><var>23.31</var>MERF division of the Public Employees Retirement Association on June 30, 2010.<br/>
<a id="pl.23.32"></a><var>23.32</var>    Subd. 4. <b>Records transfer.</b> On June 30, 2010, the executive director of the <br/>
<a id="pl.23.33"></a><var>23.33</var>Minneapolis Employees Retirement Fund shall transfer all records and documents relating <br/>
<a id="pl.23.34"></a><var>23.34</var>to the Minneapolis Employees Retirement Fund and its benefit plan to the executive <br/>
<a id="pl.23.35"></a><var>23.35</var>director of the Public Employees Retirement Association. To the extent possible, original <br/>
<a id="pl.23.36"></a><var>23.36</var>copies of all records and documents must be transferred.<br/>
<a id="pl.24.1"></a><var>24.1</var>    Subd. 5. <b>Transfer of title to assets.</b> On June 30, 2010, legal title to the assets of <br/>
<a id="pl.24.2"></a><var>24.2</var>the Minneapolis Employees Retirement Fund transfers to the State Board of Investment <br/>
<a id="pl.24.3"></a><var>24.3</var>and the assets must be invested under section 11A.14, as assets of the MERF division of <br/>
<a id="pl.24.4"></a><var>24.4</var>the Public Employees Retirement Association.  The MERF division is the successor in <br/>
<a id="pl.24.5"></a><var>24.5</var>interest to all claims that the former Minneapolis Employees Retirement Fund may have <br/>
<a id="pl.24.6"></a><var>24.6</var>or may assert against any person and is the successor in interest to all claims which could <br/>
<a id="pl.24.7"></a><var>24.7</var>have been asserted against the former Minneapolis Employees Retirement Fund, but the <br/>
<a id="pl.24.8"></a><var>24.8</var>MERF division is not liable for any claim against the former Minneapolis Employees <br/>
<a id="pl.24.9"></a><var>24.9</var>Retirement Fund, its former governing board, or its former administrative staff acting in a <br/>
<a id="pl.24.10"></a><var>24.10</var>fiduciary capacity under chapter 356A or under common law, which is founded upon a <br/>
<a id="pl.24.11"></a><var>24.11</var>claim of breach of fiduciary duty, but where the act or acts constituting the claimed breach <br/>
<a id="pl.24.12"></a><var>24.12</var>were not undertaken in good faith, the Public Employees Retirement Association may <br/>
<a id="pl.24.13"></a><var>24.13</var>assert any applicable defense to any claim in any judicial or administrative proceeding <br/>
<a id="pl.24.14"></a><var>24.14</var>that the former Minneapolis Employees Retirement Fund, its former board, or its <br/>
<a id="pl.24.15"></a><var>24.15</var>former administrative staff would otherwise have been entitled to assert, and the Public <br/>
<a id="pl.24.16"></a><var>24.16</var>Employees Retirement Association may assert any applicable defense that it has in its <br/>
<a id="pl.24.17"></a><var>24.17</var>capacity as a statewide agency.<br/>
<a id="pl.24.18"></a><var>24.18</var>    Subd. 6. <b>Benefits.</b> (a) The annuities and benefits of, or attributable to, retired, <br/>
<a id="pl.24.19"></a><var>24.19</var>disabled, deferred, or inactive Minneapolis Employees Retirement Fund members <br/>
<a id="pl.24.20"></a><var>24.20</var>with that status as of June 30, 2010, with the exception of post-December 31, 2010, <br/>
<a id="pl.24.21"></a><var>24.21</var>postretirement adjustments, which are governed by paragraph (b), as calculated under <br/>
<a id="pl.24.22"></a><var>24.22</var>Minnesota Statutes 2008, sections 422A.11; 422A.12; 422A.13; 422A.14; 422A.15; <br/>
<a id="pl.24.23"></a><var>24.23</var>422A.151; 422A.155; 422A.156; 422A.16; 422A.17; 422A.18; 422A.19; 422A.20; and <br/>
<a id="pl.24.24"></a><var>24.24</var>422A.23, continue in force after the administrative consolidation under this article.<br/>
<a id="pl.24.25"></a><var>24.25</var>(b) After December 31, 2010, annuities and benefits from the MERF division are <br/>
<a id="pl.24.26"></a><var>24.26</var>eligible for annual automatic postretirement adjustments solely under section 356.415.<br/>
<a id="pl.24.27"></a><var>24.27</var>    Subd. 7. <b>MERF division account contributions.</b> (a) After June 30, 2010, the <br/>
<a id="pl.24.28"></a><var>24.28</var>member and employer contributions to the MERF division account are governed by this <br/>
<a id="pl.24.29"></a><var>24.29</var>subdivision.<br/>
<a id="pl.24.30"></a><var>24.30</var>(b) An active member covered by the MERF division must make an employee <br/>
<a id="pl.24.31"></a><var>24.31</var>contribution of 9.75 percent of the total salary of the member as defined in section 353.01, <br/>
<a id="pl.24.32"></a><var>24.32</var>subdivision 10. The employee contribution must be made by payroll deduction by the <br/>
<a id="pl.24.33"></a><var>24.33</var>member's employing unit under section 353.27, subdivision 4, and is subject to the <br/>
<a id="pl.24.34"></a><var>24.34</var>provisions of section 353.27, subdivisions 7, 7a, 7b, 12, 12a, and 12b.<br/>
<a id="pl.25.1"></a><var>25.1</var>(c) The employer regular contribution to the MERF division account with respect <br/>
<a id="pl.25.2"></a><var>25.2</var>to an active MERF division member is 9.75 percent of the total salary of the member as <br/>
<a id="pl.25.3"></a><var>25.3</var>defined in section 353.01, subdivision 10.<br/>
<a id="pl.25.4"></a><var>25.4</var>(d) The employer additional contribution to the MERF division account with respect <br/>
<a id="pl.25.5"></a><var>25.5</var>to an active member of the MERF division is 2.68 percent of the total salary of the member <br/>
<a id="pl.25.6"></a><var>25.6</var>as defined in section 353.01, subdivision 10, plus the employing unit's share of $3,900,000 <br/>
<a id="pl.25.7"></a><var>25.7</var>that the employing unit paid or is payable to the former Minneapolis Employees <br/>
<a id="pl.25.8"></a><var>25.8</var>Retirement Fund under Minnesota Statutes 2008, section 422A.101, subdivision 1a, 2, <br/>
<a id="pl.25.9"></a><var>25.9</var>or 2a, during calendar year 2009, as was certified by the former executive director of the <br/>
<a id="pl.25.10"></a><var>25.10</var>former Minneapolis Employees Retirement Fund.<br/>
<a id="pl.25.11"></a><var>25.11</var>(e) Annually after June 30, 2012, the employer supplemental contribution to <br/>
<a id="pl.25.12"></a><var>25.12</var>the MERF division account by the city of Minneapolis, Special School District No. 1, <br/>
<a id="pl.25.13"></a><var>25.13</var>Minneapolis, a Minneapolis-owned public utility, improvement, or municipal activity, <br/>
<a id="pl.25.14"></a><var>25.14</var>Hennepin county, the Metropolitan Council, the Metropolitan Airports Commission, <br/>
<a id="pl.25.15"></a><var>25.15</var>and the Minnesota State Colleges and Universities system is the amount by which the <br/>
<a id="pl.25.16"></a><var>25.16</var>total actuarial required contribution determined under section 356.215 by the approved <br/>
<a id="pl.25.17"></a><var>25.17</var>actuary retained by the Public Employees Retirement Association in the most recent <br/>
<a id="pl.25.18"></a><var>25.18</var>actuarial valuation of the MERF division and based on a June 30, 2031, amortization <br/>
<a id="pl.25.19"></a><var>25.19</var>date, after subtracting the contributions under paragraphs (b), (c), and (d), exceeds <br/>
<a id="pl.25.20"></a><var>25.20</var>$........ Unless the various employing units agree to a different allocation and file that <br/>
<a id="pl.25.21"></a><var>25.21</var>agreement with the executive director by August 15 for the following calendar year, <br/>
<a id="pl.25.22"></a><var>25.22</var>each employing unit's share of the total employer supplemental contribution amount <br/>
<a id="pl.25.23"></a><var>25.23</var>is equal to its percentage share of the total amount allocated under Minnesota Statutes <br/>
<a id="pl.25.24"></a><var>25.24</var>2008, section 422A.101, subdivision 3, payable for calendar year 2009. The initial total <br/>
<a id="pl.25.25"></a><var>25.25</var>actuarial required contribution after June 30, 2012, must be calculated using the mortality <br/>
<a id="pl.25.26"></a><var>25.26</var>assumption change recommended on September 30, 2009, for the Minneapolis Employees <br/>
<a id="pl.25.27"></a><var>25.27</var>Retirement Fund by the approved consulting actuary retained by the Minneapolis <br/>
<a id="pl.25.28"></a><var>25.28</var>Employees Retirement Fund board.<br/>
<a id="pl.25.29"></a><var>25.29</var>(f) Notwithstanding any provision of paragraph (c), (d), or (e) to the contrary, as of <br/>
<a id="pl.25.30"></a><var>25.30</var>August 1 annually, if the amount of the retirement annuities and benefits paid from the <br/>
<a id="pl.25.31"></a><var>25.31</var>MERF division account during the preceding fiscal year, multiplied by the factor of 1.035, <br/>
<a id="pl.25.32"></a><var>25.32</var>exceeds the market value of the assets of the MERF division account on the preceding <br/>
<a id="pl.25.33"></a><var>25.33</var>June 30, plus state aid of $9,000,000 or $......., whichever applies, and plus the amounts <br/>
<a id="pl.25.34"></a><var>25.34</var>payable under paragraphs (b), (c), (d), and (e) during the preceding fiscal year, multiplied <br/>
<a id="pl.25.35"></a><var>25.35</var>by the factor of 1.035, the balance calculated is a special additional employer contribution. <br/>
<a id="pl.25.36"></a><var>25.36</var>The special additional employer contribution under this paragraph is payable in addition <br/>
<a id="pl.26.1"></a><var>26.1</var>to any employer contribution required under paragraphs (c), (d), and (e), and is payable on <br/>
<a id="pl.26.2"></a><var>26.2</var>or before the next following June 30. The special additional employer contribution under <br/>
<a id="pl.26.3"></a><var>26.3</var>this paragraph must be allocated between the city of Minneapolis, Special School District <br/>
<a id="pl.26.4"></a><var>26.4</var>No. 1, Minneapolis, any Minneapolis-owned public utility, improvement, or municipal <br/>
<a id="pl.26.5"></a><var>26.5</var>activity, the Minnesota State Colleges and Universities system, Hennepin County, the <br/>
<a id="pl.26.6"></a><var>26.6</var>Metropolitan Council, and the Metropolitan Airports Commission in proportion to their <br/>
<a id="pl.26.7"></a><var>26.7</var>share of the actuarial accrued liability of the former Minneapolis Employees Retirement <br/>
<a id="pl.26.8"></a><var>26.8</var>Fund as of July 1, 2009, as calculated by the approved actuary retained under section <br/>
<a id="pl.26.9"></a><var>26.9</var>356.214 as part of the actuarial valuation prepared as of July 1, 2009, under section <br/>
<a id="pl.26.10"></a><var>26.10</var>356.215 and the Standards for Actuarial Work adopted by the Legislative Commission on <br/>
<a id="pl.26.11"></a><var>26.11</var>Pensions and Retirement.<br/>
<a id="pl.26.12"></a><var>26.12</var>(g) The employer contributions under paragraphs (c), (d), and (e) must be paid as <br/>
<a id="pl.26.13"></a><var>26.13</var>provided in section 353.28.<br/>
<a id="pl.26.14"></a><var>26.14</var>(h) Contributions under this subdivision are subject to the provisions of section <br/>
<a id="pl.26.15"></a><var>26.15</var>353.27, subdivisions 4, 7, 7a, 7b, 11, 12, 12a, 12b, 13, and 14.<br/>
<a id="pl.26.16"></a><var>26.16</var>    Subd. 7a. <b>Minneapolis Municipal Retirement Association dues.</b> If authorized <br/>
<a id="pl.26.17"></a><var>26.17</var>by an annuitant or retirement benefit recipient in writing on a form prescribed by the <br/>
<a id="pl.26.18"></a><var>26.18</var>executive director of the Public Employees Retirement Association, the executive director <br/>
<a id="pl.26.19"></a><var>26.19</var>shall deduct the dues for the Minneapolis Municipal Retirement Association from the <br/>
<a id="pl.26.20"></a><var>26.20</var>person's annuity or retirement benefit. This dues deduction authority expires upon the <br/>
<a id="pl.26.21"></a><var>26.21</var>eventual full consolidation of the MERF account under subdivision 8.<br/>
<a id="pl.26.22"></a><var>26.22</var>    Subd. 8. <b>Eventual full consolidation.</b> (a) Once the fiscal year end market value <br/>
<a id="pl.26.23"></a><var>26.23</var>of assets of the MERF division account equals or exceeds 80 percent of the actuarial <br/>
<a id="pl.26.24"></a><var>26.24</var>accrued liability of the MERF division as calculated by the approved actuary retained by <br/>
<a id="pl.26.25"></a><var>26.25</var>the Public Employees Retirement Association under section 356.215 and the Standards <br/>
<a id="pl.26.26"></a><var>26.26</var>for Actuarial Work adopted by the Legislative Commission on Pensions and Retirement, <br/>
<a id="pl.26.27"></a><var>26.27</var>the MERF division must be merged with the general employees retirement plan of the <br/>
<a id="pl.26.28"></a><var>26.28</var>Public Employees Retirement Association and the MERF division account ceases as a <br/>
<a id="pl.26.29"></a><var>26.29</var>separate account within the general employees retirement fund of the Public Employees <br/>
<a id="pl.26.30"></a><var>26.30</var>Retirement Association.<br/>
<a id="pl.26.31"></a><var>26.31</var>(b) If the market value of the MERF division account is less than 100 percent of the <br/>
<a id="pl.26.32"></a><var>26.32</var>actuarial accrued liability of the MERF division under paragraph (a), the total employer <br/>
<a id="pl.26.33"></a><var>26.33</var>contribution of employing units referenced in subdivision 7, paragraph (e), for the period <br/>
<a id="pl.26.34"></a><var>26.34</var>after the full consolidation and June 30, 2031, to amortize on a level annual dollar payment <br/>
<a id="pl.26.35"></a><var>26.35</var>the remaining unfunded actuarial accrued liability of the former MERF division account <br/>
<a id="pl.26.36"></a><var>26.36</var>on the full consolidation date by June 30, 2031, shall be calculated by the consulting <br/>
<a id="pl.27.1"></a><var>27.1</var>actuary retained under section 356.214 using the applicable postretirement interest rate <br/>
<a id="pl.27.2"></a><var>27.2</var>actuarial assumption for the general employees retirement plan under section 356.215. <br/>
<a id="pl.27.3"></a><var>27.3</var>The actuarial accrued liability of the MERF division must be calculated using the healthy <br/>
<a id="pl.27.4"></a><var>27.4</var>retired life mortality assumption applicable to the general employees retirement plan.<br/>
<a id="pl.27.5"></a><var>27.5</var>(c) The merger shall occur as of the first day of the first month after the date on <br/>
<a id="pl.27.6"></a><var>27.6</var>which the triggering actuarial valuation report is filed with the executive director of the <br/>
<a id="pl.27.7"></a><var>27.7</var>Legislative Commission on Pensions and Retirement.<br/>
<a id="pl.27.8"></a><var>27.8</var>(d) The executive director of the Public Employees Retirement Association shall <br/>
<a id="pl.27.9"></a><var>27.9</var>prepare proposed legislation fully implementing the merger and updating the applicable <br/>
<a id="pl.27.10"></a><var>27.10</var>provisions of chapters 353 and 356 and transmit the proposed legislation to the executive <br/>
<a id="pl.27.11"></a><var>27.11</var>director of the Legislative Commission on Pensions and Retirement by the following <br/>
<a id="pl.27.12"></a><var>27.12</var>February 15.<br/>
<a id="pl.27.13"></a><var>27.13</var>    Subd. 9. <b>Merger of former MERF membership groups into PERA-general.</b><br/>
<a id="pl.27.14"></a><var>27.14</var>If provided for in an agreement between the board of trustees of the Public Employees <br/>
<a id="pl.27.15"></a><var>27.15</var>Retirement Association and the governing board of an employing unit formerly with <br/>
<a id="pl.27.16"></a><var>27.16</var>retirement coverage provided for its employees by the former Minneapolis Employees <br/>
<a id="pl.27.17"></a><var>27.17</var>Retirement Fund, an employing unit may transfer sufficient assets to the general <br/>
<a id="pl.27.18"></a><var>27.18</var>employees retirement fund to cover the anticipated actuarial accrued liability for its <br/>
<a id="pl.27.19"></a><var>27.19</var>current or former employees that is in excess of MERF division account assets attributable <br/>
<a id="pl.27.20"></a><var>27.20</var>to those employees, have those employees be considered full members of the general <br/>
<a id="pl.27.21"></a><var>27.21</var>employees retirement plan, and be relieved of any further contribution obligation to the <br/>
<a id="pl.27.22"></a><var>27.22</var>general employees retirement plan for those employees under this section. Any agreement <br/>
<a id="pl.27.23"></a><var>27.23</var>under this subdivision and any actuarial valuation report related to a merger under this <br/>
<a id="pl.27.24"></a><var>27.24</var>subdivision must be submitted to the executive director of the Legislative Commission on <br/>
<a id="pl.27.25"></a><var>27.25</var>Pensions and Retirement for comment prior to the final execution.<br/>
<br/>
<a id="bill.1.18.0"></a><a id="pl.27.26"></a><var>27.26</var>    Sec. 18. Minnesota Statutes 2008, section 353.64, subdivision 7, is amended to read:<br/>
<a id="pl.27.27"></a><var>27.27</var>    Subd. 7. <b>Pension coverage for </b><b>certain</b><b> public safety employees of </b><b>the</b><b> </b><br/>
<a id="pl.27.28"></a><var>27.28</var><b>Metropolitan Airports Commission.</b> Any person first employed as either a full-time <br/>
<a id="pl.27.29"></a><var>27.29</var>firefighter or a full-time police officer by the Metropolitan Airports Commission after June <br/>
<a id="pl.27.30"></a><var>27.30</var>30, 1978, who is not eligible for coverage under the agreement signed between the state <br/>
<a id="pl.27.31"></a><var>27.31</var>and the secretary of the federal Department of Health and Human Services making the <br/>
<a id="pl.27.32"></a><var>27.32</var>provisions of the federal Old Age, Survivors, and Disability Insurance Act applicable to <br/>
<a id="pl.27.33"></a><var>27.33</var>municipal employees because that position is excluded from application pursuant to under <br/>
<a id="pl.27.34"></a><var>27.34</var>Title 42, United States Code, Sections 418 (d) (5) (A) and 418 (d) (8) (D) and section <br/>
<statute_ref><a id="pl.27.35"></a><var>27.35</var>355.07
         </statute_ref>, shall not be a member of the Minneapolis Employees Retirement Fund but shall <br/>
<a id="pl.28.1"></a><var>28.1</var>be is a member of the public employees police and fire fund and shall be is deemed to be a <br/>
<a id="pl.28.2"></a><var>28.2</var>firefighter or a police officer within the meaning of this section. The Metropolitan Airports <br/>
<a id="pl.28.3"></a><var>28.3</var>Commission shall make the employer contribution required pursuant to under section <br/>
<statute_ref><a id="pl.28.4"></a><var>28.4</var>353.65, subdivision 3
         </statute_ref>, with respect to each of its firefighters or police officers covered <br/>
<a id="pl.28.5"></a><var>28.5</var>by the public employees police and fire fund and shall meet the employers recording and <br/>
<a id="pl.28.6"></a><var>28.6</var>reporting requirements set forth in section 
         <statute_ref>353.65, subdivision 4</statute_ref>. <br/>
<br/>
<a id="bill.1.19.0"></a><a id="pl.28.7"></a><var>28.7</var>    Sec. 19. Minnesota Statutes 2008, section 356.215, subdivision 8, is amended to read:<br/>
<a id="pl.28.8"></a><var>28.8</var>    Subd. 8. <b>Interest and salary assumptions.</b> (a) The actuarial valuation must use <br/>
<a id="pl.28.9"></a><var>28.9</var>the applicable following preretirement interest assumption and the applicable following <br/>
<a id="pl.28.10"></a><var>28.10</var>postretirement interest assumption:<br/>
<table>
<col width="50px"/>
<col width="37"/>
<col width="5"/>
<col width="11.5"/>
<col width="11.5"/>
<tr>
<td><a id="pl.28.11"></a><var>28.11</var><br/>
<a id="pl.28.12"></a><var>28.12</var><br/>
<a id="pl.28.13"></a><var>28.13</var><br/>
</td>
<td align="center">plan<br/>
</td>
<td align="center" colspan="2">preretirement<br/>
                  		interest rate<br/>
                  		assumption<br/>
</td>
<td align="center">postretirement <br/>
                  		interest rate<br/>
                  		assumption<br/>
</td>
</tr>
<tr>
<td><a id="pl.28.14"></a><var>28.14</var><br/>
</td>
<td>general state employees retirement plan<br/>
</td>
<td></td>
<td>8.5%<br/>
</td>
<td>6.0%<br/>
</td>
</tr>
<tr>
<td><a id="pl.28.15"></a><var>28.15</var><br/>
</td>
<td>correctional state employees retirement plan<br/>
</td>
<td></td>
<td>8.5<br/>
</td>
<td>6.0<br/>
</td>
</tr>
<tr>
<td><a id="pl.28.16"></a><var>28.16</var><br/>
</td>
<td>State Patrol retirement plan<br/>
</td>
<td></td>
<td>8.5<br/>
</td>
<td>6.0<br/>
</td>
</tr>
<tr>
<td><a id="pl.28.17"></a><var>28.17</var><br/>
</td>
<td>legislators retirement plan<br/>
</td>
<td></td>
<td>8.5<br/>
</td>
<td>6.0<br/>
</td>
</tr>
<tr>
<td><a id="pl.28.18"></a><var>28.18</var><br/>
</td>
<td>elective state officers retirement plan<br/>
</td>
<td></td>
<td>8.5<br/>
</td>
<td>6.0<br/>
</td>
</tr>
<tr>
<td><a id="pl.28.19"></a><var>28.19</var><br/>
</td>
<td>judges retirement plan<br/>
</td>
<td></td>
<td>8.5<br/>
</td>
<td>6.0<br/>
</td>
</tr>
<tr>
<td><a id="pl.28.20"></a><var>28.20</var><br/>
</td>
<td>general public employees retirement plan<br/>
</td>
<td></td>
<td>8.5<br/>
</td>
<td>6.0<br/>
</td>
</tr>
<tr>
<td><a id="pl.28.21"></a><var>28.21</var><br/>
</td>
<td>public employees police and fire retirement plan<br/>
</td>
<td></td>
<td>8.5<br/>
</td>
<td>6.0<br/>
</td>
</tr>
<tr>
<td><a id="pl.28.22"></a><var>28.22</var><br/>
<a id="pl.28.23"></a><var>28.23</var><br/>
</td>
<td>local government correctional service retirement <br/>
                  		plan<br/>
</td>
<td></td>
<td>8.5<br/>
</td>
<td>6.0<br/>
</td>
</tr>
<tr>
<td><a id="pl.28.24"></a><var>28.24</var><br/>
</td>
<td>teachers retirement plan<br/>
</td>
<td></td>
<td>8.5<br/>
</td>
<td>6.0<br/>
</td>
</tr>
<tr>
<td><a id="pl.28.25"></a><var>28.25</var><br/>
</td>
<td>Minneapolis employees retirement plan<br/>
</td>
<td></td>
<td>6.0<br/>
</td>
<td>5.0<br/>
</td>
</tr>
<tr>
<td><a id="pl.28.26"></a><var>28.26</var><br/>
</td>
<td>Duluth teachers retirement plan<br/>
</td>
<td></td>
<td>8.5<br/>
</td>
<td>8.5<br/>
</td>
</tr>
<tr>
<td><a id="pl.28.27"></a><var>28.27</var><br/>
</td>
<td>St. Paul teachers retirement plan<br/>
</td>
<td></td>
<td>8.5<br/>
</td>
<td>8.5<br/>
</td>
</tr>
<tr>
<td><a id="pl.28.28"></a><var>28.28</var><br/>
</td>
<td>Minneapolis Police Relief Association<br/>
</td>
<td></td>
<td>6.0<br/>
</td>
<td>6.0<br/>
</td>
</tr>
<tr>
<td><a id="pl.28.29"></a><var>28.29</var><br/>
</td>
<td>Fairmont Police Relief Association<br/>
</td>
<td></td>
<td>5.0<br/>
</td>
<td>5.0<br/>
</td>
</tr>
<tr>
<td><a id="pl.28.30"></a><var>28.30</var><br/>
</td>
<td>Minneapolis Fire Department Relief Association<br/>
</td>
<td></td>
<td>6.0<br/>
</td>
<td>6.0<br/>
</td>
</tr>
<tr>
<td><a id="pl.28.31"></a><var>28.31</var><br/>
</td>
<td>Virginia Fire Department Relief Association<br/>
</td>
<td></td>
<td>5.0<br/>
</td>
<td>5.0<br/>
</td>
</tr>
<tr>
<td><a id="pl.28.32"></a><var>28.32</var><br/>
</td>
<td>Bloomington Fire Department Relief Association<br/>
</td>
<td></td>
<td>6.0<br/>
</td>
<td>6.0<br/>
</td>
</tr>
<tr>
<td><a id="pl.28.33"></a><var>28.33</var><br/>
<a id="pl.28.34"></a><var>28.34</var><br/>
</td>
<td>local monthly benefit volunteer firefighters relief <br/>
                  		associations<br/>
</td>
<td></td>
<td>5.0<br/>
</td>
<td>5.0<br/>
</td>
</tr>
</table><a id="pl.28.35"></a><var>28.35</var>    (b) Before July 1, 2010, the actuarial valuation must use the applicable following <br/>
<a id="pl.28.36"></a><var>28.36</var>single rate future salary increase assumption, the applicable following modified single <br/>
<a id="pl.28.37"></a><var>28.37</var>rate future salary increase assumption, or the applicable following graded rate future <br/>
<a id="pl.28.38"></a><var>28.38</var>salary increase assumption:<br/>
<a id="pl.28.39"></a><var>28.39</var>    (1) single rate future salary increase assumption<br/>
<table>
<col width="50px"/>
<col width="35"/>
<col width="13"/>
<col width="17"/>
<tr>
<td><a id="pl.29.1"></a><var>29.1</var><br/>
<a id="pl.29.2"></a><var>29.2</var><br/>
</td>
<td align="center">plan<br/>
</td>
<td align="center" colspan="2">future salary<br/>
                  		increase assumption<br/>
</td>
</tr>
<tr>
<td><a id="pl.29.3"></a><var>29.3</var><br/>
</td>
<td>legislators retirement plan<br/>
</td>
<td></td>
<td>5.0%<br/>
</td>
</tr>
<tr>
<td><a id="pl.29.4"></a><var>29.4</var><br/>
</td>
<td>judges retirement plan<br/>
</td>
<td></td>
<td>4.0 <br/>
</td>
</tr>
<tr>
<td><a id="pl.29.5"></a><var>29.5</var><br/>
</td>
<td>Minneapolis Police Relief Association<br/>
</td>
<td></td>
<td>4.0<br/>
</td>
</tr>
<tr>
<td><a id="pl.29.6"></a><var>29.6</var><br/>
</td>
<td>Fairmont Police Relief Association<br/>
</td>
<td></td>
<td>3.5<br/>
</td>
</tr>
<tr>
<td><a id="pl.29.7"></a><var>29.7</var><br/>
<a id="pl.29.8"></a><var>29.8</var><br/>
</td>
<td>Minneapolis Fire Department Relief <br/>
                  		Association<br/>
</td>
<td></td>
<td>4.0<br/>
</td>
</tr>
<tr>
<td><a id="pl.29.9"></a><var>29.9</var><br/>
</td>
<td>Virginia Fire Department Relief Association<br/>
</td>
<td></td>
<td>3.5<br/>
</td>
</tr>
<tr>
<td><a id="pl.29.10"></a><var>29.10</var><br/>
<a id="pl.29.11"></a><var>29.11</var><br/>
</td>
<td>Bloomington Fire Department Relief <br/>
                  		Association<br/>
</td>
<td></td>
<td>4.0<br/>
</td>
</tr>
</table><a id="pl.29.12"></a><var>29.12</var>    (2) modified single rate future salary increase assumption<br/>
<table>
<col width="50px"/>
<col width="25"/>
<col width="10"/>
<col width="30"/>
<tr>
<td><a id="pl.29.13"></a><var>29.13</var><br/>
<a id="pl.29.14"></a><var>29.14</var><br/>
</td>
<td align="center">plan<br/>
</td>
<td></td>
<td align="center">future salary<br/>
increase assumption<br/>
</td>
</tr>
<tr>
<td><a id="pl.29.15"></a><var>29.15</var><br/>
<a id="pl.29.16"></a><var>29.16</var><br/>
<a id="pl.29.17"></a><var>29.17</var><br/>
<a id="pl.29.18"></a><var>29.18</var><br/>
</td>
<td valign="top">Minneapolis employees <br/>
retirement plan<br/>
</td>
<td></td>
<td>the prior calendar year amount increased <br/>
first by 1.0198 percent to prior fiscal year <br/>
date and then increased by 4.0 percent <br/>
annually for each future year<br/>
</td>
</tr>
</table><a id="pl.29.19"></a><var>29.19</var>    (3) (2) select and ultimate future salary increase assumption or graded rate future <br/>
<a id="pl.29.20"></a><var>29.20</var>salary increase assumption<br/>
<table>
<col width="50px"/>
<col width="40"/>
<col width="25"/>
<tr>
<td><a id="pl.29.21"></a><var>29.21</var><br/>
<a id="pl.29.22"></a><var>29.22</var><br/>
</td>
<td align="center">plan<br/>
</td>
<td align="center">future salary<br/>
                  		increase assumption<br/>
</td>
</tr>
<tr>
<td><a id="pl.29.23"></a><var>29.23</var><br/>
<a id="pl.29.24"></a><var>29.24</var><br/>
</td>
<td valign="top">general state employees retirement plan<br/>
</td>
<td align="center" valign="top">select calculation and <br/>
                  		assumption A<br/>
</td>
</tr>
<tr>
<td><a id="pl.29.25"></a><var>29.25</var><br/>
</td>
<td valign="top">correctional state employees retirement plan<br/>
</td>
<td align="center" valign="top">assumption H<br/>
</td>
</tr>
<tr>
<td><a id="pl.29.26"></a><var>29.26</var><br/>
</td>
<td valign="top">State Patrol retirement plan<br/>
</td>
<td align="center" valign="top">assumption G<br/>
</td>
</tr>
<tr>
<td><a id="pl.29.27"></a><var>29.27</var><br/>
<a id="pl.29.28"></a><var>29.28</var><br/>
</td>
<td valign="top">general public employees retirement plan<br/>
</td>
<td align="center" valign="top">select calculation and <br/>
                  		assumption B<br/>
</td>
</tr>
<tr>
<td><a id="pl.29.29"></a><var>29.29</var><br/>
</td>
<td valign="top">public employees police and fire fund retirement plan<br/>
</td>
<td align="center" valign="top">assumption C<br/>
</td>
</tr>
<tr>
<td><a id="pl.29.30"></a><var>29.30</var><br/>
</td>
<td valign="top">local government correctional service retirement plan<br/>
</td>
<td align="center" valign="top">assumption G<br/>
</td>
</tr>
<tr>
<td><a id="pl.29.31"></a><var>29.31</var><br/>
</td>
<td valign="top">teachers retirement plan<br/>
</td>
<td align="center" valign="top">assumption D<br/>
</td>
</tr>
<tr>
<td><a id="pl.29.32"></a><var>29.32</var><br/>
</td>
<td valign="top">Duluth teachers retirement plan<br/>
</td>
<td align="center" valign="top">assumption E<br/>
</td>
</tr>
<tr>
<td><a id="pl.29.33"></a><var>29.33</var><br/>
</td>
<td valign="top">St. Paul teachers retirement plan<br/>
</td>
<td align="center" valign="top">assumption F<br/>
</td>
</tr>
</table><a id="pl.29.34"></a><var>29.34</var>The select calculation is: during the <br/>
<a id="pl.29.35"></a><var>29.35</var>designated select period, a designated <br/>
<a id="pl.29.36"></a><var>29.36</var>percentage rate is multiplied by the result of <br/>
<a id="pl.29.37"></a><var>29.37</var>the designated integer minus T, where T is the <br/>
<a id="pl.29.38"></a><var>29.38</var>number of completed years of service, and is <br/>
<a id="pl.29.39"></a><var>29.39</var>added to the applicable future salary increase <br/>
<a id="pl.29.40"></a><var>29.40</var>assumption. The designated select period is <br/>
<a id="pl.29.41"></a><var>29.41</var>five years and the designated integer is five <br/>
<a id="pl.29.42"></a><var>29.42</var>for the general state employees retirement <br/>
<a id="pl.30.1"></a><var>30.1</var>plan and the general public employees <br/>
<a id="pl.30.2"></a><var>30.2</var>retirement plan. The designated select period <br/>
<a id="pl.30.3"></a><var>30.3</var>is ten years and the designated integer is ten <br/>
<a id="pl.30.4"></a><var>30.4</var>for all other retirement plans covered by <br/>
<a id="pl.30.5"></a><var>30.5</var>this clause. The designated percentage rate <br/>
<a id="pl.30.6"></a><var>30.6</var>is: (1) 0.2 percent for the correctional state <br/>
<a id="pl.30.7"></a><var>30.7</var>employees retirement plan, the State Patrol <br/>
<a id="pl.30.8"></a><var>30.8</var>retirement plan, the public employees police <br/>
<a id="pl.30.9"></a><var>30.9</var>and fire plan, and the local government <br/>
<a id="pl.30.10"></a><var>30.10</var>correctional service plan; (2) 0.6 percent <br/>
<a id="pl.30.11"></a><var>30.11</var>for the general state employees retirement <br/>
<a id="pl.30.12"></a><var>30.12</var>plan and the general public employees <br/>
<a id="pl.30.13"></a><var>30.13</var>retirement plan; and (3) 0.3 percent for the <br/>
<a id="pl.30.14"></a><var>30.14</var>teachers retirement plan, the Duluth Teachers <br/>
<a id="pl.30.15"></a><var>30.15</var>Retirement Fund Association, and the St. <br/>
<a id="pl.30.16"></a><var>30.16</var>Paul Teachers Retirement Fund Association. <br/>
<a id="pl.30.17"></a><var>30.17</var>The select calculation for the Duluth Teachers <br/>
<a id="pl.30.18"></a><var>30.18</var>Retirement Fund Association is 8.00 percent <br/>
<a id="pl.30.19"></a><var>30.19</var>per year for service years one through seven, <br/>
<a id="pl.30.20"></a><var>30.20</var>7.25 percent per year for service years seven <br/>
<a id="pl.30.21"></a><var>30.21</var>and eight, and 6.50 percent per year for <br/>
<a id="pl.30.22"></a><var>30.22</var>service years eight and nine.<br/>
<a id="pl.30.23"></a><var>30.23</var>    The ultimate future salary increase assumption is:<br/>
<table>
<col width="50px"/>
<col width="5"/>
<col width="7.5"/>
<col width="7.5"/>
<col width="7.5"/>
<col width="7.5"/>
<col width="7.5"/>
<col width="7.5"/>
<col width="7.5"/>
<col width="7.5"/>
<tr>
<td><a id="pl.30.24"></a><var>30.24</var><br/>
</td>
<td>age<br/>
</td>
<td>A<br/>
</td>
<td>B<br/>
</td>
<td>C<br/>
</td>
<td>D<br/>
</td>
<td>E<br/>
</td>
<td>F<br/>
</td>
<td>G<br/>
</td>
<td>H<br/>
</td>
</tr>
<tr>
<td><a id="pl.30.25"></a><var>30.25</var><br/>
</td>
<td>16<br/>
</td>
<td>5.95%<br/>
</td>
<td>5.95%<br/>
</td>
<td>11.00%<br/>
</td>
<td>7.70%<br/>
</td>
<td>8.00%<br/>
</td>
<td>6.90%<br/>
</td>
<td>7.7500%<br/>
</td>
<td>7.2500%<br/>
</td>
</tr>
<tr>
<td><a id="pl.30.26"></a><var>30.26</var><br/>
</td>
<td>17<br/>
</td>
<td>5.90<br/>
</td>
<td>5.90<br/>
</td>
<td>11.00<br/>
</td>
<td>7.65<br/>
</td>
<td>8.00<br/>
</td>
<td>6.90<br/>
</td>
<td>7.7500<br/>
</td>
<td>7.2500<br/>
</td>
</tr>
<tr>
<td><a id="pl.30.27"></a><var>30.27</var><br/>
</td>
<td>18<br/>
</td>
<td>5.85<br/>
</td>
<td>5.85<br/>
</td>
<td>11.00<br/>
</td>
<td>7.60<br/>
</td>
<td>8.00<br/>
</td>
<td>6.90<br/>
</td>
<td>7.7500<br/>
</td>
<td>7.2500<br/>
</td>
</tr>
<tr>
<td><a id="pl.30.28"></a><var>30.28</var><br/>
</td>
<td>19<br/>
</td>
<td>5.80<br/>
</td>
<td>5.80<br/>
</td>
<td>11.00<br/>
</td>
<td>7.55<br/>
</td>
<td>8.00<br/>
</td>
<td>6.90<br/>
</td>
<td>7.7500<br/>
</td>
<td>7.2500<br/>
</td>
</tr>
<tr>
<td><a id="pl.30.29"></a><var>30.29</var><br/>
</td>
<td>20<br/>
</td>
<td>5.75<br/>
</td>
<td>5.40<br/>
</td>
<td>11.00<br/>
</td>
<td>5.50<br/>
</td>
<td>6.90<br/>
</td>
<td>6.90<br/>
</td>
<td>7.7500<br/>
</td>
<td>7.2500<br/>
</td>
</tr>
<tr>
<td><a id="pl.30.30"></a><var>30.30</var><br/>
</td>
<td>21<br/>
</td>
<td>5.75<br/>
</td>
<td>5.40<br/>
</td>
<td>11.00<br/>
</td>
<td>5.50<br/>
</td>
<td>6.90<br/>
</td>
<td>6.90<br/>
</td>
<td>7.1454<br/>
</td>
<td>6.6454<br/>
</td>
</tr>
<tr>
<td><a id="pl.30.31"></a><var>30.31</var><br/>
</td>
<td>22<br/>
</td>
<td>5.75<br/>
</td>
<td>5.40<br/>
</td>
<td>10.50<br/>
</td>
<td>5.50<br/>
</td>
<td>6.90<br/>
</td>
<td>6.90<br/>
</td>
<td>7.0725<br/>
</td>
<td>6.5725<br/>
</td>
</tr>
<tr>
<td><a id="pl.30.32"></a><var>30.32</var><br/>
</td>
<td>23<br/>
</td>
<td>5.75<br/>
</td>
<td>5.40<br/>
</td>
<td>10.00<br/>
</td>
<td>5.50<br/>
</td>
<td>6.85<br/>
</td>
<td>6.85<br/>
</td>
<td>7.0544<br/>
</td>
<td>6.5544<br/>
</td>
</tr>
<tr>
<td><a id="pl.30.33"></a><var>30.33</var><br/>
</td>
<td>24<br/>
</td>
<td>5.75<br/>
</td>
<td>5.40<br/>
</td>
<td>9.50<br/>
</td>
<td>5.50<br/>
</td>
<td>6.80<br/>
</td>
<td>6.80<br/>
</td>
<td>7.0363<br/>
</td>
<td>6.5363<br/>
</td>
</tr>
<tr>
<td><a id="pl.30.34"></a><var>30.34</var><br/>
</td>
<td>25<br/>
</td>
<td>5.75<br/>
</td>
<td>5.40<br/>
</td>
<td>9.00<br/>
</td>
<td>5.50<br/>
</td>
<td>6.75<br/>
</td>
<td>6.75<br/>
</td>
<td>7.0000<br/>
</td>
<td>6.5000<br/>
</td>
</tr>
<tr>
<td><a id="pl.30.35"></a><var>30.35</var><br/>
</td>
<td>26<br/>
</td>
<td>5.75<br/>
</td>
<td>5.36<br/>
</td>
<td>8.70<br/>
</td>
<td>5.50<br/>
</td>
<td>6.70<br/>
</td>
<td>6.70<br/>
</td>
<td>7.0000<br/>
</td>
<td>6.5000<br/>
</td>
</tr>
<tr>
<td><a id="pl.30.36"></a><var>30.36</var><br/>
</td>
<td>27<br/>
</td>
<td>5.75<br/>
</td>
<td>5.32<br/>
</td>
<td>8.40<br/>
</td>
<td>5.50<br/>
</td>
<td>6.65<br/>
</td>
<td>6.65<br/>
</td>
<td>7.0000<br/>
</td>
<td>6.5000<br/>
</td>
</tr>
<tr>
<td><a id="pl.30.37"></a><var>30.37</var><br/>
</td>
<td>28<br/>
</td>
<td>5.75<br/>
</td>
<td>5.28<br/>
</td>
<td>8.10<br/>
</td>
<td>5.50<br/>
</td>
<td>6.60<br/>
</td>
<td>6.60<br/>
</td>
<td>7.0000<br/>
</td>
<td>6.5000<br/>
</td>
</tr>
<tr>
<td><a id="pl.30.38"></a><var>30.38</var><br/>
</td>
<td>29<br/>
</td>
<td>5.75<br/>
</td>
<td>5.24<br/>
</td>
<td>7.80<br/>
</td>
<td>5.50<br/>
</td>
<td>6.55<br/>
</td>
<td>6.55<br/>
</td>
<td>7.0000<br/>
</td>
<td>6.5000<br/>
</td>
</tr>
<tr>
<td><a id="pl.30.39"></a><var>30.39</var><br/>
</td>
<td>30<br/>
</td>
<td>5.75<br/>
</td>
<td>5.20<br/>
</td>
<td>7.50<br/>
</td>
<td>5.50<br/>
</td>
<td>6.50<br/>
</td>
<td>6.50<br/>
</td>
<td>7.0000<br/>
</td>
<td>6.5000<br/>
</td>
</tr>
<tr>
<td><a id="pl.31.1"></a><var>31.1</var><br/>
</td>
<td>31<br/>
</td>
<td>5.75<br/>
</td>
<td>5.16<br/>
</td>
<td>7.30<br/>
</td>
<td>5.50<br/>
</td>
<td>6.45<br/>
</td>
<td>6.45<br/>
</td>
<td>7.0000<br/>
</td>
<td>6.5000<br/>
</td>
</tr>
<tr>
<td><a id="pl.31.2"></a><var>31.2</var><br/>
</td>
<td>32<br/>
</td>
<td>5.75<br/>
</td>
<td>5.12<br/>
</td>
<td>7.10<br/>
</td>
<td>5.50<br/>
</td>
<td>6.40<br/>
</td>
<td>6.40<br/>
</td>
<td>7.0000<br/>
</td>
<td>6.5000<br/>
</td>
</tr>
<tr>
<td><a id="pl.31.3"></a><var>31.3</var><br/>
</td>
<td>33<br/>
</td>
<td>5.75<br/>
</td>
<td>5.08<br/>
</td>
<td>6.90<br/>
</td>
<td>5.50<br/>
</td>
<td>6.35<br/>
</td>
<td>6.35<br/>
</td>
<td>7.0000<br/>
</td>
<td>6.5000<br/>
</td>
</tr>
<tr>
<td><a id="pl.31.4"></a><var>31.4</var><br/>
</td>
<td>34<br/>
</td>
<td>5.75<br/>
</td>
<td>5.04<br/>
</td>
<td>6.70<br/>
</td>
<td>5.50<br/>
</td>
<td>6.30<br/>
</td>
<td>6.30<br/>
</td>
<td>7.0000<br/>
</td>
<td>6.5000<br/>
</td>
</tr>
<tr>
<td><a id="pl.31.5"></a><var>31.5</var><br/>
</td>
<td>35<br/>
</td>
<td>5.75<br/>
</td>
<td>5.00<br/>
</td>
<td>6.50<br/>
</td>
<td>5.50<br/>
</td>
<td>6.25<br/>
</td>
<td>6.25<br/>
</td>
<td>7.0000<br/>
</td>
<td>6.5000<br/>
</td>
</tr>
<tr>
<td><a id="pl.31.6"></a><var>31.6</var><br/>
</td>
<td>36<br/>
</td>
<td>5.75<br/>
</td>
<td>4.96<br/>
</td>
<td>6.30<br/>
</td>
<td>5.50<br/>
</td>
<td>6.20<br/>
</td>
<td>6.20<br/>
</td>
<td>6.9019<br/>
</td>
<td>6.4019<br/>
</td>
</tr>
<tr>
<td><a id="pl.31.7"></a><var>31.7</var><br/>
</td>
<td>37<br/>
</td>
<td>5.75<br/>
</td>
<td>4.92<br/>
</td>
<td>6.10<br/>
</td>
<td>5.50<br/>
</td>
<td>6.15<br/>
</td>
<td>6.15<br/>
</td>
<td>6.8074<br/>
</td>
<td>6.3074<br/>
</td>
</tr>
<tr>
<td><a id="pl.31.8"></a><var>31.8</var><br/>
</td>
<td>38<br/>
</td>
<td>5.75<br/>
</td>
<td>4.88<br/>
</td>
<td>5.90<br/>
</td>
<td>5.40<br/>
</td>
<td>6.10<br/>
</td>
<td>6.10<br/>
</td>
<td>6.7125<br/>
</td>
<td>6.2125<br/>
</td>
</tr>
<tr>
<td><a id="pl.31.9"></a><var>31.9</var><br/>
</td>
<td>39<br/>
</td>
<td>5.75<br/>
</td>
<td>4.84<br/>
</td>
<td>5.70<br/>
</td>
<td>5.30<br/>
</td>
<td>6.05<br/>
</td>
<td>6.05<br/>
</td>
<td>6.6054<br/>
</td>
<td>6.1054<br/>
</td>
</tr>
<tr>
<td><a id="pl.31.10"></a><var>31.10</var><br/>
</td>
<td>40<br/>
</td>
<td>5.75<br/>
</td>
<td>4.80<br/>
</td>
<td>5.50<br/>
</td>
<td>5.20<br/>
</td>
<td>6.00<br/>
</td>
<td>6.00<br/>
</td>
<td>6.5000<br/>
</td>
<td>6.0000<br/>
</td>
</tr>
<tr>
<td><a id="pl.31.11"></a><var>31.11</var><br/>
</td>
<td>41<br/>
</td>
<td>5.75<br/>
</td>
<td>4.76<br/>
</td>
<td>5.40<br/>
</td>
<td>5.10<br/>
</td>
<td>5.90<br/>
</td>
<td>5.95<br/>
</td>
<td>6.3540<br/>
</td>
<td>5.8540<br/>
</td>
</tr>
<tr>
<td><a id="pl.31.12"></a><var>31.12</var><br/>
</td>
<td>42<br/>
</td>
<td>5.75<br/>
</td>
<td>4.72<br/>
</td>
<td>5.30<br/>
</td>
<td>5.00<br/>
</td>
<td>5.80<br/>
</td>
<td>5.90<br/>
</td>
<td>6.2087<br/>
</td>
<td>5.7087<br/>
</td>
</tr>
<tr>
<td><a id="pl.31.13"></a><var>31.13</var><br/>
</td>
<td>43<br/>
</td>
<td>5.65<br/>
</td>
<td>4.68<br/>
</td>
<td>5.20<br/>
</td>
<td>4.90<br/>
</td>
<td>5.70<br/>
</td>
<td>5.85<br/>
</td>
<td>6.0622<br/>
</td>
<td>5.5622<br/>
</td>
</tr>
<tr>
<td><a id="pl.31.14"></a><var>31.14</var><br/>
</td>
<td>44<br/>
</td>
<td>5.55<br/>
</td>
<td>4.64<br/>
</td>
<td>5.10<br/>
</td>
<td>4.80<br/>
</td>
<td>5.60<br/>
</td>
<td>5.80<br/>
</td>
<td>5.9048<br/>
</td>
<td>5.4078<br/>
</td>
</tr>
<tr>
<td><a id="pl.31.15"></a><var>31.15</var><br/>
</td>
<td>45<br/>
</td>
<td>5.45<br/>
</td>
<td>4.60<br/>
</td>
<td>5.00<br/>
</td>
<td>4.70<br/>
</td>
<td>5.50<br/>
</td>
<td>5.75<br/>
</td>
<td>5.7500<br/>
</td>
<td>5.2500<br/>
</td>
</tr>
<tr>
<td><a id="pl.31.16"></a><var>31.16</var><br/>
</td>
<td>46<br/>
</td>
<td>5.35<br/>
</td>
<td>4.56<br/>
</td>
<td>4.95<br/>
</td>
<td>4.60<br/>
</td>
<td>5.40<br/>
</td>
<td>5.70<br/>
</td>
<td>5.6940<br/>
</td>
<td>5.1940<br/>
</td>
</tr>
<tr>
<td><a id="pl.31.17"></a><var>31.17</var><br/>
</td>
<td>47<br/>
</td>
<td>5.25<br/>
</td>
<td>4.52<br/>
</td>
<td>4.90<br/>
</td>
<td>4.50<br/>
</td>
<td>5.30<br/>
</td>
<td>5.65<br/>
</td>
<td>5.6375<br/>
</td>
<td>5.1375<br/>
</td>
</tr>
<tr>
<td><a id="pl.31.18"></a><var>31.18</var><br/>
</td>
<td>48<br/>
</td>
<td>5.15<br/>
</td>
<td>4.48<br/>
</td>
<td>4.85<br/>
</td>
<td>4.50<br/>
</td>
<td>5.20<br/>
</td>
<td>5.60<br/>
</td>
<td>5.5822<br/>
</td>
<td>5.0822<br/>
</td>
</tr>
<tr>
<td><a id="pl.31.19"></a><var>31.19</var><br/>
</td>
<td>49<br/>
</td>
<td>5.05<br/>
</td>
<td>4.44<br/>
</td>
<td>4.80<br/>
</td>
<td>4.50<br/>
</td>
<td>5.10<br/>
</td>
<td>5.55<br/>
</td>
<td>5.5404<br/>
</td>
<td>5.0404<br/>
</td>
</tr>
<tr>
<td><a id="pl.31.20"></a><var>31.20</var><br/>
</td>
<td>50<br/>
</td>
<td>4.95<br/>
</td>
<td>4.40<br/>
</td>
<td>4.75<br/>
</td>
<td>4.50<br/>
</td>
<td>5.00<br/>
</td>
<td>5.50<br/>
</td>
<td>5.5000<br/>
</td>
<td>5.0000<br/>
</td>
</tr>
<tr>
<td><a id="pl.31.21"></a><var>31.21</var><br/>
</td>
<td>51<br/>
</td>
<td>4.85<br/>
</td>
<td>4.36<br/>
</td>
<td>4.75<br/>
</td>
<td>4.50<br/>
</td>
<td>4.90<br/>
</td>
<td>5.45<br/>
</td>
<td>5.4384<br/>
</td>
<td>4.9384<br/>
</td>
</tr>
<tr>
<td><a id="pl.31.22"></a><var>31.22</var><br/>
</td>
<td>52<br/>
</td>
<td>4.75<br/>
</td>
<td>4.32<br/>
</td>
<td>4.75<br/>
</td>
<td>4.50<br/>
</td>
<td>4.80<br/>
</td>
<td>5.40<br/>
</td>
<td>5.3776<br/>
</td>
<td>4.8776<br/>
</td>
</tr>
<tr>
<td><a id="pl.31.23"></a><var>31.23</var><br/>
</td>
<td>53<br/>
</td>
<td>4.65<br/>
</td>
<td>4.28<br/>
</td>
<td>4.75<br/>
</td>
<td>4.50<br/>
</td>
<td>4.70<br/>
</td>
<td>5.35<br/>
</td>
<td>5.3167<br/>
</td>
<td>4.8167<br/>
</td>
</tr>
<tr>
<td><a id="pl.31.24"></a><var>31.24</var><br/>
</td>
<td>54<br/>
</td>
<td>4.55<br/>
</td>
<td>4.24<br/>
</td>
<td>4.75<br/>
</td>
<td>4.50<br/>
</td>
<td>4.60<br/>
</td>
<td>5.30<br/>
</td>
<td>5.2826<br/>
</td>
<td>4.7826<br/>
</td>
</tr>
<tr>
<td><a id="pl.31.25"></a><var>31.25</var><br/>
</td>
<td>55<br/>
</td>
<td>4.45<br/>
</td>
<td>4.20<br/>
</td>
<td>4.75<br/>
</td>
<td>4.50<br/>
</td>
<td>4.50<br/>
</td>
<td>5.25<br/>
</td>
<td>5.2500<br/>
</td>
<td>4.7500<br/>
</td>
</tr>
<tr>
<td><a id="pl.31.26"></a><var>31.26</var><br/>
</td>
<td>56<br/>
</td>
<td>4.35<br/>
</td>
<td>4.16<br/>
</td>
<td>4.75<br/>
</td>
<td>4.50<br/>
</td>
<td>4.40<br/>
</td>
<td>5.20<br/>
</td>
<td>5.2500<br/>
</td>
<td>4.7500<br/>
</td>
</tr>
<tr>
<td><a id="pl.31.27"></a><var>31.27</var><br/>
</td>
<td>57<br/>
</td>
<td>4.25<br/>
</td>
<td>4.12<br/>
</td>
<td>4.75<br/>
</td>
<td>4.50<br/>
</td>
<td>4.30<br/>
</td>
<td>5.15<br/>
</td>
<td>5.2500<br/>
</td>
<td>4.7500<br/>
</td>
</tr>
<tr>
<td><a id="pl.31.28"></a><var>31.28</var><br/>
</td>
<td>58<br/>
</td>
<td>4.25<br/>
</td>
<td>4.08<br/>
</td>
<td>4.75<br/>
</td>
<td>4.60<br/>
</td>
<td>4.20<br/>
</td>
<td>5.10<br/>
</td>
<td>5.2500<br/>
</td>
<td>4.7500<br/>
</td>
</tr>
<tr>
<td><a id="pl.31.29"></a><var>31.29</var><br/>
</td>
<td>59<br/>
</td>
<td>4.25<br/>
</td>
<td>4.04<br/>
</td>
<td>4.75<br/>
</td>
<td>4.70<br/>
</td>
<td>4.10<br/>
</td>
<td>5.05<br/>
</td>
<td>5.2500<br/>
</td>
<td>4.7500<br/>
</td>
</tr>
<tr>
<td><a id="pl.31.30"></a><var>31.30</var><br/>
</td>
<td>60<br/>
</td>
<td>4.25<br/>
</td>
<td>4.00<br/>
</td>
<td>4.75<br/>
</td>
<td>4.80<br/>
</td>
<td>4.00<br/>
</td>
<td>5.00<br/>
</td>
<td>5.2500<br/>
</td>
<td>4.7500<br/>
</td>
</tr>
<tr>
<td><a id="pl.31.31"></a><var>31.31</var><br/>
</td>
<td>61<br/>
</td>
<td>4.25<br/>
</td>
<td>4.00<br/>
</td>
<td>4.75<br/>
</td>
<td>4.90<br/>
</td>
<td>3.90<br/>
</td>
<td>5.00<br/>
</td>
<td>5.2500<br/>
</td>
<td>4.7500<br/>
</td>
</tr>
<tr>
<td><a id="pl.31.32"></a><var>31.32</var><br/>
</td>
<td>62<br/>
</td>
<td>4.25<br/>
</td>
<td>4.00<br/>
</td>
<td>4.75<br/>
</td>
<td>5.00<br/>
</td>
<td>3.80<br/>
</td>
<td>5.00<br/>
</td>
<td>5.2500<br/>
</td>
<td>4.7500<br/>
</td>
</tr>
<tr>
<td><a id="pl.31.33"></a><var>31.33</var><br/>
</td>
<td>63<br/>
</td>
<td>4.25<br/>
</td>
<td>4.00<br/>
</td>
<td>4.75<br/>
</td>
<td>5.10<br/>
</td>
<td>3.70<br/>
</td>
<td>5.00<br/>
</td>
<td>5.2500<br/>
</td>
<td>4.7500<br/>
</td>
</tr>
<tr>
<td><a id="pl.31.34"></a><var>31.34</var><br/>
</td>
<td>64<br/>
</td>
<td>4.25<br/>
</td>
<td>4.00<br/>
</td>
<td>4.75<br/>
</td>
<td>5.20<br/>
</td>
<td>3.60<br/>
</td>
<td>5.00<br/>
</td>
<td>5.2500<br/>
</td>
<td>4.7500<br/>
</td>
</tr>
<tr>
<td><a id="pl.31.35"></a><var>31.35</var><br/>
</td>
<td>65<br/>
</td>
<td>4.25<br/>
</td>
<td>4.00<br/>
</td>
<td>4.75<br/>
</td>
<td>5.20<br/>
</td>
<td>3.50<br/>
</td>
<td>5.00<br/>
</td>
<td>5.2500<br/>
</td>
<td>4.7500<br/>
</td>
</tr>
<tr>
<td><a id="pl.31.36"></a><var>31.36</var><br/>
</td>
<td>66<br/>
</td>
<td>4.25<br/>
</td>
<td>4.00<br/>
</td>
<td>4.75<br/>
</td>
<td>5.20<br/>
</td>
<td>3.50<br/>
</td>
<td>5.00<br/>
</td>
<td>5.2500<br/>
</td>
<td>4.7500<br/>
</td>
</tr>
<tr>
<td><a id="pl.31.37"></a><var>31.37</var><br/>
</td>
<td>67<br/>
</td>
<td>4.25<br/>
</td>
<td>4.00<br/>
</td>
<td>4.75<br/>
</td>
<td>5.20<br/>
</td>
<td>3.50<br/>
</td>
<td>5.00<br/>
</td>
<td>5.2500<br/>
</td>
<td>4.7500<br/>
</td>
</tr>
<tr>
<td><a id="pl.31.38"></a><var>31.38</var><br/>
</td>
<td>68<br/>
</td>
<td>4.25<br/>
</td>
<td>4.00<br/>
</td>
<td>4.75<br/>
</td>
<td>5.20<br/>
</td>
<td>3.50<br/>
</td>
<td>5.00<br/>
</td>
<td>5.2500<br/>
</td>
<td>4.7500<br/>
</td>
</tr>
<tr>
<td><a id="pl.31.39"></a><var>31.39</var><br/>
</td>
<td>69<br/>
</td>
<td>4.25<br/>
</td>
<td>4.00<br/>
</td>
<td>4.75<br/>
</td>
<td>5.20<br/>
</td>
<td>3.50<br/>
</td>
<td>5.00<br/>
</td>
<td>5.2500<br/>
</td>
<td>4.7500<br/>
</td>
</tr>
<tr>
<td><a id="pl.31.40"></a><var>31.40</var><br/>
</td>
<td>70<br/>
</td>
<td>4.25<br/>
</td>
<td>4.00<br/>
</td>
<td>4.75<br/>
</td>
<td>5.20<br/>
</td>
<td>3.50<br/>
</td>
<td>5.00<br/>
</td>
<td>5.2500<br/>
</td>
<td>4.7500<br/>
</td>
</tr>
<tr>
<td><a id="pl.31.41"></a><var>31.41</var><br/>
</td>
<td>71<br/>
</td>
<td>4.25<br/>
</td>
<td>4.00<br/>
</td>
<td></td>
<td>5.20<br/>
</td>
<td></td>
<td></td>
<td></td>
<td></td>
</tr>
</table><a id="pl.31.42"></a><var>31.42</var>    (c) Before July 2, 2010, the actuarial valuation must use the applicable following <br/>
<a id="pl.31.43"></a><var>31.43</var>payroll growth assumption for calculating the amortization requirement for the unfunded <br/>
<a id="pl.32.1"></a><var>32.1</var>actuarial accrued liability where the amortization retirement is calculated as a level <br/>
<a id="pl.32.2"></a><var>32.2</var>percentage of an increasing payroll:<br/>
<table>
<col width="50px"/>
<col width="37"/>
<col width="11"/>
<col width="17"/>
<tr>
<td><a id="pl.32.3"></a><var>32.3</var><br/>
<a id="pl.32.4"></a><var>32.4</var><br/>
</td>
<td align="center">plan<br/>
</td>
<td align="center" colspan="2">payroll growth<br/>
                  		assumption<br/>
</td>
</tr>
<tr>
<td><a id="pl.32.5"></a><var>32.5</var><br/>
</td>
<td>general state employees retirement plan<br/>
</td>
<td></td>
<td>4.50%<br/>
</td>
</tr>
<tr>
<td><a id="pl.32.6"></a><var>32.6</var><br/>
</td>
<td>correctional state employees retirement plan<br/>
</td>
<td></td>
<td>4.50<br/>
</td>
</tr>
<tr>
<td><a id="pl.32.7"></a><var>32.7</var><br/>
</td>
<td>State Patrol retirement plan<br/>
</td>
<td></td>
<td>4.50<br/>
</td>
</tr>
<tr>
<td><a id="pl.32.8"></a><var>32.8</var><br/>
</td>
<td>legislators retirement plan<br/>
</td>
<td></td>
<td>4.50<br/>
</td>
</tr>
<tr>
<td><a id="pl.32.9"></a><var>32.9</var><br/>
</td>
<td>judges retirement plan<br/>
</td>
<td></td>
<td>4.00<br/>
</td>
</tr>
<tr>
<td><a id="pl.32.10"></a><var>32.10</var><br/>
</td>
<td>general public employees retirement plan<br/>
</td>
<td></td>
<td>4.50<br/>
</td>
</tr>
<tr>
<td><a id="pl.32.11"></a><var>32.11</var><br/>
</td>
<td>public employees police and fire retirement plan<br/>
</td>
<td></td>
<td>4.50<br/>
</td>
</tr>
<tr>
<td><a id="pl.32.12"></a><var>32.12</var><br/>
<a id="pl.32.13"></a><var>32.13</var><br/>
</td>
<td>local government correctional service retirement <br/>
                  		plan<br/>
</td>
<td></td>
<td>4.50<br/>
</td>
</tr>
<tr>
<td><a id="pl.32.14"></a><var>32.14</var><br/>
</td>
<td>teachers retirement plan<br/>
</td>
<td></td>
<td>4.50<br/>
</td>
</tr>
<tr>
<td><a id="pl.32.15"></a><var>32.15</var><br/>
</td>
<td>Duluth teachers retirement plan<br/>
</td>
<td></td>
<td>4.50<br/>
</td>
</tr>
<tr>
<td><a id="pl.32.16"></a><var>32.16</var><br/>
</td>
<td>St. Paul teachers retirement plan<br/>
</td>
<td></td>
<td>5.00<br/>
</td>
</tr>
</table><a id="pl.32.17"></a><var>32.17</var>    (d) After July 1, 2010, the assumptions set forth in paragraphs (b) and (c) continue to <br/>
<a id="pl.32.18"></a><var>32.18</var>apply, unless a different salary assumption or a different payroll increase assumption:<br/>
<a id="pl.32.19"></a><var>32.19</var>    (1) has been proposed by the governing board of the applicable retirement plan;<br/>
<a id="pl.32.20"></a><var>32.20</var>    (2) is accompanied by the concurring recommendation of the actuary retained under <br/>
<a id="pl.32.21"></a><var>32.21</var>section 
         <statute_ref>356.214, subdivision 1</statute_ref>, if applicable, or by the approved actuary preparing the <br/>
<a id="pl.32.22"></a><var>32.22</var>most recent actuarial valuation report if section 
         <statute_ref>356.214</statute_ref> does not apply; and<br/>
<a id="pl.32.23"></a><var>32.23</var>    (3) has been approved or deemed approved under subdivision 18.<br/>
<br/>
<a id="bill.1.20.0"></a><a id="pl.32.24"></a><var>32.24</var>    Sec. 20. Minnesota Statutes 2009 Supplement, section 356.215, subdivision 11, <br/>
<a id="pl.32.25"></a><var>32.25</var>is amended to read:<br/>
<a id="pl.32.26"></a><var>32.26</var>    Subd. 11. <b>Amortization contributions.</b> (a) In addition to the exhibit indicating <br/>
<a id="pl.32.27"></a><var>32.27</var>the level normal cost, the actuarial valuation of the retirement plan must contain an <br/>
<a id="pl.32.28"></a><var>32.28</var>exhibit for financial reporting purposes indicating the additional annual contribution <br/>
<a id="pl.32.29"></a><var>32.29</var>sufficient to amortize the unfunded actuarial accrued liability and must contain an exhibit <br/>
<a id="pl.32.30"></a><var>32.30</var>for contribution determination purposes indicating the additional contribution sufficient <br/>
<a id="pl.32.31"></a><var>32.31</var>to amortize the unfunded actuarial accrued liability. For the retirement plans listed in <br/>
<a id="pl.32.32"></a><var>32.32</var>subdivision 8, paragraph (c), but excluding the MERF division of the Public Employees <br/>
<a id="pl.32.33"></a><var>32.33</var>Retirement Association, the additional contribution must be calculated on a level <br/>
<a id="pl.32.34"></a><var>32.34</var>percentage of covered payroll basis by the established date for full funding in effect when <br/>
<a id="pl.32.35"></a><var>32.35</var>the valuation is prepared, assuming annual payroll growth at the applicable percentage <br/>
<a id="pl.32.36"></a><var>32.36</var>rate set forth in subdivision 8, paragraph (c). For all other retirement plans and for the <br/>
<a id="pl.32.37"></a><var>32.37</var>MERF division of the Public Employees Retirement Association, the additional annual <br/>
<a id="pl.32.38"></a><var>32.38</var>contribution must be calculated on a level annual dollar amount basis. <br/>
<a id="pl.33.1"></a><var>33.1</var>    (b) For any retirement plan other than the Minneapolis Employees Retirement Fund, <br/>
<a id="pl.33.2"></a><var>33.2</var>the general employees a retirement plan of the Public Employees Retirement Association, <br/>
<a id="pl.33.3"></a><var>33.3</var>and the St. Paul Teachers Retirement Fund Association governed by paragraph (d), (e), <br/>
<a id="pl.33.4"></a><var>33.4</var>(f), (g), (h), (i), or (j), if there has not been a change in the actuarial assumptions used <br/>
<a id="pl.33.5"></a><var>33.5</var>for calculating the actuarial accrued liability of the fund, a change in the benefit plan <br/>
<a id="pl.33.6"></a><var>33.6</var>governing annuities and benefits payable from the fund, a change in the actuarial cost <br/>
<a id="pl.33.7"></a><var>33.7</var>method used in calculating the actuarial accrued liability of all or a portion of the fund, or <br/>
<a id="pl.33.8"></a><var>33.8</var>a combination of the three, which change or changes by itself or by themselves without <br/>
<a id="pl.33.9"></a><var>33.9</var>inclusion of any other items of increase or decrease produce a net increase in the unfunded <br/>
<a id="pl.33.10"></a><var>33.10</var>actuarial accrued liability of the fund, the established date for full funding is the first <br/>
<a id="pl.33.11"></a><var>33.11</var>actuarial valuation date occurring after June 1, 2020.<br/>
<a id="pl.33.12"></a><var>33.12</var>    (c) For any retirement plan other than the Minneapolis Employees Retirement <br/>
<a id="pl.33.13"></a><var>33.13</var>Fund and the general employees retirement plan of the Public Employees Retirement <br/>
<a id="pl.33.14"></a><var>33.14</var>Association, if there has been a change in any or all of the actuarial assumptions used <br/>
<a id="pl.33.15"></a><var>33.15</var>for calculating the actuarial accrued liability of the fund, a change in the benefit plan <br/>
<a id="pl.33.16"></a><var>33.16</var>governing annuities and benefits payable from the fund, a change in the actuarial cost <br/>
<a id="pl.33.17"></a><var>33.17</var>method used in calculating the actuarial accrued liability of all or a portion of the fund, <br/>
<a id="pl.33.18"></a><var>33.18</var>or a combination of the three, and the change or changes, by itself or by themselves and <br/>
<a id="pl.33.19"></a><var>33.19</var>without inclusion of any other items of increase or decrease, produce a net increase in the <br/>
<a id="pl.33.20"></a><var>33.20</var>unfunded actuarial accrued liability in the fund, the established date for full funding must <br/>
<a id="pl.33.21"></a><var>33.21</var>be determined using the following procedure:<br/>
<a id="pl.33.22"></a><var>33.22</var>    (i) the unfunded actuarial accrued liability of the fund must be determined in <br/>
<a id="pl.33.23"></a><var>33.23</var>accordance with the plan provisions governing annuities and retirement benefits and the <br/>
<a id="pl.33.24"></a><var>33.24</var>actuarial assumptions in effect before an applicable change;<br/>
<a id="pl.33.25"></a><var>33.25</var>    (ii) the level annual dollar contribution or level percentage, whichever is applicable, <br/>
<a id="pl.33.26"></a><var>33.26</var>needed to amortize the unfunded actuarial accrued liability amount determined under item <br/>
<a id="pl.33.27"></a><var>33.27</var>(i) by the established date for full funding in effect before the change must be calculated <br/>
<a id="pl.33.28"></a><var>33.28</var>using the interest assumption specified in subdivision 8 in effect before the change;<br/>
<a id="pl.33.29"></a><var>33.29</var>    (iii) the unfunded actuarial accrued liability of the fund must be determined in <br/>
<a id="pl.33.30"></a><var>33.30</var>accordance with any new plan provisions governing annuities and benefits payable from <br/>
<a id="pl.33.31"></a><var>33.31</var>the fund and any new actuarial assumptions and the remaining plan provisions governing <br/>
<a id="pl.33.32"></a><var>33.32</var>annuities and benefits payable from the fund and actuarial assumptions in effect before <br/>
<a id="pl.33.33"></a><var>33.33</var>the change;<br/>
<a id="pl.33.34"></a><var>33.34</var>    (iv) the level annual dollar contribution or level percentage, whichever is applicable, <br/>
<a id="pl.33.35"></a><var>33.35</var>needed to amortize the difference between the unfunded actuarial accrued liability amount <br/>
<a id="pl.33.36"></a><var>33.36</var>calculated under item (i) and the unfunded actuarial accrued liability amount calculated <br/>
<a id="pl.34.1"></a><var>34.1</var>under item (iii) over a period of 30 years from the end of the plan year in which the <br/>
<a id="pl.34.2"></a><var>34.2</var>applicable change is effective must be calculated using the applicable interest assumption <br/>
<a id="pl.34.3"></a><var>34.3</var>specified in subdivision 8 in effect after any applicable change;<br/>
<a id="pl.34.4"></a><var>34.4</var>    (v) the level annual dollar or level percentage amortization contribution under item <br/>
<a id="pl.34.5"></a><var>34.5</var>(iv) must be added to the level annual dollar amortization contribution or level percentage <br/>
<a id="pl.34.6"></a><var>34.6</var>calculated under item (ii);<br/>
<a id="pl.34.7"></a><var>34.7</var>    (vi) the period in which the unfunded actuarial accrued liability amount determined <br/>
<a id="pl.34.8"></a><var>34.8</var>in item (iii) is amortized by the total level annual dollar or level percentage amortization <br/>
<a id="pl.34.9"></a><var>34.9</var>contribution computed under item (v) must be calculated using the interest assumption <br/>
<a id="pl.34.10"></a><var>34.10</var>specified in subdivision 8 in effect after any applicable change, rounded to the nearest <br/>
<a id="pl.34.11"></a><var>34.11</var>integral number of years, but not to exceed 30 years from the end of the plan year in <br/>
<a id="pl.34.12"></a><var>34.12</var>which the determination of the established date for full funding using the procedure set <br/>
<a id="pl.34.13"></a><var>34.13</var>forth in this clause is made and not to be less than the period of years beginning in the <br/>
<a id="pl.34.14"></a><var>34.14</var>plan year in which the determination of the established date for full funding using the <br/>
<a id="pl.34.15"></a><var>34.15</var>procedure set forth in this clause is made and ending by the date for full funding in effect <br/>
<a id="pl.34.16"></a><var>34.16</var>before the change; and<br/>
<a id="pl.34.17"></a><var>34.17</var>    (vii) the period determined under item (vi) must be added to the date as of which <br/>
<a id="pl.34.18"></a><var>34.18</var>the actuarial valuation was prepared and the date obtained is the new established date <br/>
<a id="pl.34.19"></a><var>34.19</var>for full funding.<br/>
<a id="pl.34.20"></a><var>34.20</var>    (d) For the Minneapolis Employees Retirement Fund MERF division of the Public <br/>
<a id="pl.34.21"></a><var>34.21</var>Employees Retirement Association, the established date for full funding is June 30, 2020 <br/>
<a id="pl.34.22"></a><var>34.22</var>2031.<br/>
<a id="pl.34.23"></a><var>34.23</var>    (e) For the general employees retirement plan of the Public Employees Retirement <br/>
<a id="pl.34.24"></a><var>34.24</var>Association, the established date for full funding is June 30, 2031.<br/>
<a id="pl.34.25"></a><var>34.25</var>    (f) For the Teachers Retirement Association, the established date for full funding is <br/>
<a id="pl.34.26"></a><var>34.26</var>June 30, 2037.<br/>
<a id="pl.34.27"></a><var>34.27</var>    (g) For the correctional state employees retirement plan of the Minnesota State <br/>
<a id="pl.34.28"></a><var>34.28</var>Retirement System, the established date for full funding is June 30, 2038.<br/>
<a id="pl.34.29"></a><var>34.29</var>    (h) For the judges retirement plan, the established date for full funding is June <br/>
<a id="pl.34.30"></a><var>34.30</var>30, 2038.<br/>
<a id="pl.34.31"></a><var>34.31</var>    (i) For the public employees police and fire retirement plan, the established date <br/>
<a id="pl.34.32"></a><var>34.32</var>for full funding is June 30, 2038.<br/>
<a id="pl.34.33"></a><var>34.33</var>    (j) For the St. Paul Teachers Retirement Fund Association, the established date for <br/>
<a id="pl.34.34"></a><var>34.34</var>full funding is June 30 of the 25th year from the valuation date. In addition to other <br/>
<a id="pl.34.35"></a><var>34.35</var>requirements of this chapter, the annual actuarial valuation shall contain an exhibit <br/>
<a id="pl.34.36"></a><var>34.36</var>indicating the funded ratio and the deficiency or sufficiency in annual contributions when <br/>
<a id="pl.35.1"></a><var>35.1</var>comparing liabilities to the market value of the assets of the fund as of the close of the <br/>
<a id="pl.35.2"></a><var>35.2</var>most recent fiscal year.<br/>
<a id="pl.35.3"></a><var>35.3</var>    (k) For the retirement plans for which the annual actuarial valuation indicates an <br/>
<a id="pl.35.4"></a><var>35.4</var>excess of valuation assets over the actuarial accrued liability, the valuation assets in <br/>
<a id="pl.35.5"></a><var>35.5</var>excess of the actuarial accrued liability must be recognized as a reduction in the current <br/>
<a id="pl.35.6"></a><var>35.6</var>contribution requirements by an amount equal to the amortization of the excess expressed <br/>
<a id="pl.35.7"></a><var>35.7</var>as a level percentage of pay over a 30-year period beginning anew with each annual <br/>
<a id="pl.35.8"></a><var>35.8</var>actuarial valuation of the plan.<br/>
<br/>
<a id="bill.1.21.0"></a><a id="pl.35.9"></a><var>35.9</var>    Sec. 21. Minnesota Statutes 2008, section 422A.101, subdivision 3, is amended to read:<br/>
<a id="pl.35.10"></a><var>35.10</var>    Subd. 3. <b>State contributions.</b> (a) Subject to the limitation set forth in paragraph <br/>
<a id="pl.35.11"></a><var>35.11</var>(c), the state shall pay to the MERF division account of the Public Employees Retirement <br/>
<a id="pl.35.12"></a><var>35.12</var>Association with respect to the former Minneapolis Employees Retirement Fund annually <br/>
<a id="pl.35.13"></a><var>35.13</var>an amount equal to the amount calculated under paragraph (b).<br/>
<a id="pl.35.14"></a><var>35.14</var>    (b) The payment amount is an amount equal to the financial requirements of the <br/>
<a id="pl.35.15"></a><var>35.15</var>Minneapolis Employees Retirement Fund MERF division of the Public Employees <br/>
<a id="pl.35.16"></a><var>35.16</var>Retirement Association reported in the actuarial valuation of the fund general employees <br/>
<a id="pl.35.17"></a><var>35.17</var>retirement plan of the Public Employees Retirement Association prepared by the actuary <br/>
<a id="pl.35.18"></a><var>35.18</var>retained under section 
         <statute_ref>356.214</statute_ref> consistent with section 
         <statute_ref>356.215</statute_ref> for the most recent year <br/>
<a id="pl.35.19"></a><var>35.19</var>but based on a target date for full amortization of the unfunded actuarial accrued liabilities <br/>
<a id="pl.35.20"></a><var>35.20</var>by June 30, 2020 2031, less the amount of employee contributions required under section <br/>
<statute_ref><a id="pl.35.21"></a><var>35.21</var>422A.10
</statute_ref> 353.50, subdivision 7, paragraph (b), and the amount of employer contributions <br/>
<a id="pl.35.22"></a><var>35.22</var>required under subdivisions 1a, 2, and 2a section 353.50, subdivision 7, paragraphs (c) <br/>
<a id="pl.35.23"></a><var>35.23</var>and (d). Payments shall must be made September 15 annually. <br/>
<a id="pl.35.24"></a><var>35.24</var>    (c) The annual state contribution under this subdivision may not exceed $9,000,000, <br/>
<a id="pl.35.25"></a><var>35.25</var>plus the cost of the annual supplemental benefit determined under Minnesota Statutes <br/>
<a id="pl.35.26"></a><var>35.26</var>2008, section 
         <statute_ref>356.43</statute_ref>, through June 30, 2012, and may not exceed $9,000,000, plus the <br/>
<a id="pl.35.27"></a><var>35.27</var>cost of the annual supplemental benefit determined under Minnesota Statutes 2008, section <br/>
<a id="pl.35.28"></a><var>35.28</var>356.43, plus $....... annually after June 30, 2012, and until June 30, 2031. <br/>
<a id="pl.35.29"></a><var>35.29</var>    (d) Annually and after June 30, 2012, if the amount determined under paragraph <br/>
<a id="pl.35.30"></a><var>35.30</var>(b) exceeds $9,000,000 the applicable maximum amount specified in paragraph (c), <br/>
<a id="pl.35.31"></a><var>35.31</var>the excess must be allocated to and paid to the fund by the employers identified in <br/>
<a id="pl.35.32"></a><var>35.32</var>Minnesota Statutes 2008, section 422A.101, subdivisions 1a and, 2, and 2a other than <br/>
<a id="pl.35.33"></a><var>35.33</var>units of metropolitan government. Each employer's share of the excess is proportionate <br/>
<a id="pl.35.34"></a><var>35.34</var>to the employer's share of the fund's unfunded actuarial accrued liability as disclosed in <br/>
<a id="pl.35.35"></a><var>35.35</var>the annual actuarial valuation prepared by the actuary retained under section 
         <statute_ref>356.214</statute_ref> <br/>
<a id="pl.36.1"></a><var>36.1</var>compared to the total unfunded actuarial accrued liability as of July 1, 2009, attributed <br/>
<a id="pl.36.2"></a><var>36.2</var>to all employers identified in Minnesota Statutes 2008, section 422A.101, subdivisions <br/>
<a id="pl.36.3"></a><var>36.3</var>1a and 2, other than units of metropolitan government. Payments must be made in equal <br/>
<a id="pl.36.4"></a><var>36.4</var>installments as set forth in paragraph (b).<br/>
<a id="pl.36.5"></a><var>36.5</var>(e) State contributions under this section end on September 15, 2031, or on <br/>
<a id="pl.36.6"></a><var>36.6</var>September 1 following the first date on which the current assets of the MERF division <br/>
<a id="pl.36.7"></a><var>36.7</var>of the Public Employees Retirement Association equal or exceed the actuarial accrued <br/>
<a id="pl.36.8"></a><var>36.8</var>liability of the MERF division of the Public Employees Retirement Association, <br/>
<a id="pl.36.9"></a><var>36.9</var>whichever occurs earlier.<br/>
<br/>
<a id="bill.1.22.0"></a><a id="pl.36.10"></a><var>36.10</var>    Sec. 22. Minnesota Statutes 2008, section 422A.26, is amended to read:<br/>
<a id="pl.36.11"></a><var>36.11</var><b>422A.26 COVERAGE BY THE PUBLIC EMPLOYEES RETIREMENT </b><br/>
<a id="pl.36.12"></a><var>36.12</var><b>ASSOCIATION.</b><br/>
<a id="pl.36.13"></a><var>36.13</var>Notwithstanding section 
<statute_ref>422A.09</statute_ref>, or any other law to the contrary, any person <br/>
<a id="pl.36.14"></a><var>36.14</var>whose employment by, or assumption of a position as an appointed or elected officer <br/>
<a id="pl.36.15"></a><var>36.15</var>of, the city of Minneapolis, any of the boards, departments, or commissions operated <br/>
<a id="pl.36.16"></a><var>36.16</var>as a department of the city of Minneapolis or independently if financed in whole or in <br/>
<a id="pl.36.17"></a><var>36.17</var>part by funds of the city of Minneapolis, the Metropolitan Airports Commission, the <br/>
<a id="pl.36.18"></a><var>36.18</var>former Minneapolis Employees Retirement Fund, or Special School District Number 1 if <br/>
<a id="pl.36.19"></a><var>36.19</var>the person is not a member of the Minneapolis Teachers Retirement Fund Association <br/>
<a id="pl.36.20"></a><var>36.20</var>by virtue of that employment or position, initially commences on or after July 1, 1979 <br/>
<a id="pl.36.21"></a><var>36.21</var>shall be is a member of the general employees retirement plan of the Public Employees <br/>
<a id="pl.36.22"></a><var>36.22</var>Retirement Association unless excluded from membership pursuant to under section <br/>
<statute_ref><a id="pl.36.23"></a><var>36.23</var>353.01, subdivision 2b
         </statute_ref>. In no event shall there be any new members of the contributing <br/>
<a id="pl.36.24"></a><var>36.24</var>class of the Minneapolis employees fund on or after July 1, 1979.  <br/>
<br/>
<a id="bill.1.23.0"></a><a id="pl.36.25"></a><var>36.25</var>    Sec. 23. <b>JULY 1, 2010, MERF DIVISION ACTUARIAL VALUATION </b><br/>
<a id="pl.36.26"></a><var>36.26</var><b>ASSUMPTIONS.</b><br/>
<a id="pl.36.27"></a><var>36.27</var>The approved actuary retained by the Minneapolis Employees Retirement Fund shall <br/>
<a id="pl.36.28"></a><var>36.28</var>compare the actuarial assumptions to be used for the July 1, 2010, actuarial valuation of <br/>
<a id="pl.36.29"></a><var>36.29</var>the general employees retirement plan of the Public Employees Retirement Association <br/>
<a id="pl.36.30"></a><var>36.30</var>with the actuarial assumptions used to prepare the July 1, 2009, actuarial valuation of the <br/>
<a id="pl.36.31"></a><var>36.31</var>Minneapolis Employees Retirement Fund and, on or before July 1, 2010, shall recommend <br/>
<a id="pl.36.32"></a><var>36.32</var>to the approved actuary retained by the Public Employees Retirement Association and to <br/>
<a id="pl.36.33"></a><var>36.33</var>the Legislative Commission on Pensions and Retirement the actuarial assumptions that <br/>
<a id="pl.36.34"></a><var>36.34</var>the actuary believes would be appropriate for the MERF division portion of the actuarial <br/>
<a id="pl.37.1"></a><var>37.1</var>valuation of the general employees retirement plan of the Public Employees Retirement <br/>
<a id="pl.37.2"></a><var>37.2</var>Association. Any actuarial assumption changes related to the MERF division must be <br/>
<a id="pl.37.3"></a><var>37.3</var>approved under Minnesota Statutes, section 356.215, subdivision 18.<br/>
<br/>
<a id="bill.1.24.0"></a><a id="pl.37.4"></a><var>37.4</var>    Sec. 24. <b>MINNEAPOLIS MUNICIPAL RETIREMENT ASSOCIATION.</b><br/>
<a id="pl.37.5"></a><var>37.5</var>(a) The administrative consolidation of the former Minneapolis Employees <br/>
<a id="pl.37.6"></a><var>37.6</var>Retirement Fund into the general employees retirement plan of the Public Employees <br/>
<a id="pl.37.7"></a><var>37.7</var>Retirement Association and the merger of the MERF division of the Public Employees <br/>
<a id="pl.37.8"></a><var>37.8</var>Retirement Association into the general employees retirement plan of the Public <br/>
<a id="pl.37.9"></a><var>37.9</var>Employees Retirement Association does not affect the function of the Minneapolis <br/>
<a id="pl.37.10"></a><var>37.10</var>Municipal Retirement Association, a nonprofit corporation, to monitor the administration <br/>
<a id="pl.37.11"></a><var>37.11</var>of the retirement coverage for former members of the former Minneapolis Employees <br/>
<a id="pl.37.12"></a><var>37.12</var>Retirement Fund.<br/>
<a id="pl.37.13"></a><var>37.13</var>(b) Nothing in this article entitles the Minneapolis Municipal Retirement Association <br/>
<a id="pl.37.14"></a><var>37.14</var>to receive any revenue derived from taxes or obligates the Public Employees Retirement <br/>
<a id="pl.37.15"></a><var>37.15</var>Association to undertake any special duties with respect to the corporation.<br/>
<br/>
<a id="bill.1.25.0"></a><a id="pl.37.16"></a><var>37.16</var>    Sec. 25. <b>TRANSFER OF MERF EMPLOYEES.</b><br/>
<a id="pl.37.17"></a><var>37.17</var>(a) Unless the employee elects the severance pay option under paragraph (c), <br/>
<a id="pl.37.18"></a><var>37.18</var>full-time employees of the Minneapolis Employees Retirement Fund first employed <br/>
<a id="pl.37.19"></a><var>37.19</var>before June 30, 2008, and employed full time by the Minneapolis Employees Retirement <br/>
<a id="pl.37.20"></a><var>37.20</var>Fund on June 29, 2010, with the employment title of benefits coordinator, are transferred <br/>
<a id="pl.37.21"></a><var>37.21</var>to employment by the city of Minneapolis on July 1, 2010. The chief human relations <br/>
<a id="pl.37.22"></a><var>37.22</var>official of the city of Minneapolis shall place the transferred employee in an appropriate <br/>
<a id="pl.37.23"></a><var>37.23</var>employment position based on the employee's education and employment experience. The <br/>
<a id="pl.37.24"></a><var>37.24</var>transferred employee must have their accumulated, but unused, vacation and sick leave <br/>
<a id="pl.37.25"></a><var>37.25</var>balances as of June 30, 2010, posted to the individual accounts with the new employer. <br/>
<a id="pl.37.26"></a><var>37.26</var>The transferred employees must receive length of service credit for time served with the <br/>
<a id="pl.37.27"></a><var>37.27</var>Minneapolis Employees Retirement Fund. The transferred employee must be given the <br/>
<a id="pl.37.28"></a><var>37.28</var>opportunity as of the date of transfer to be covered for all health and other insurance <br/>
<a id="pl.37.29"></a><var>37.29</var>benefits offered by the new employer. Upon the transfer of the employee, the Minneapolis <br/>
<a id="pl.37.30"></a><var>37.30</var>Employees Retirement Fund shall transfer assets to the city of Minneapolis equal to the <br/>
<a id="pl.37.31"></a><var>37.31</var>present value of any accumulated unused vacation or sick leave balances as of the date <br/>
<a id="pl.37.32"></a><var>37.32</var>of transfer.<br/>
<a id="pl.37.33"></a><var>37.33</var>(b) Unless the employee elects the severance pay option under paragraph (c), <br/>
<a id="pl.37.34"></a><var>37.34</var>full-time employees of the Minneapolis Employees Retirement Fund first employed before <br/>
<a id="pl.38.1"></a><var>38.1</var>June 30, 2008, and employed full time by the Minneapolis Employees Retirement Fund <br/>
<a id="pl.38.2"></a><var>38.2</var>on June 29, 2010, with the employment title of accounting manager or accountant II are <br/>
<a id="pl.38.3"></a><var>38.3</var>transferred to employment by the Public Employees Retirement Association on July 1, <br/>
<a id="pl.38.4"></a><var>38.4</var>2010. The chief human relations official of the Public Employees Retirement Association <br/>
<a id="pl.38.5"></a><var>38.5</var>shall place the transferred employee in an appropriate employment position based on the <br/>
<a id="pl.38.6"></a><var>38.6</var>employee's education and employment experience. The transferred employee must have <br/>
<a id="pl.38.7"></a><var>38.7</var>their accumulated, but unused, vacation and sick leave balances as of June 30, 2010, <br/>
<a id="pl.38.8"></a><var>38.8</var>posted to the individual accounts with the new employer. The transferred employees <br/>
<a id="pl.38.9"></a><var>38.9</var>must receive length of service credit for time served with the Minneapolis Employees <br/>
<a id="pl.38.10"></a><var>38.10</var>Retirement Fund. The transferred employee must be given the opportunity as of the <br/>
<a id="pl.38.11"></a><var>38.11</var>date of transfer to be covered for all health and other insurance benefits offered by the <br/>
<a id="pl.38.12"></a><var>38.12</var>new employer. Upon the transfer of the employee, the executive director of the Public <br/>
<a id="pl.38.13"></a><var>38.13</var>Employees Retirement Association shall deduct from any assets transferred under section <br/>
<a id="pl.38.14"></a><var>38.14</var>353.50 an amount equal to the present value of any accumulated unused vacation or sick <br/>
<a id="pl.38.15"></a><var>38.15</var>leave balances as of the date of transfer.<br/>
<a id="pl.38.16"></a><var>38.16</var>(c) An employee covered by paragraph (a) or (b) who elects not to transfer to the <br/>
<a id="pl.38.17"></a><var>38.17</var>new employer unit is granted severance pay in an amount equivalent to one year of salary <br/>
<a id="pl.38.18"></a><var>38.18</var>based on the last annual salary rate received by the employee. The election must be <br/>
<a id="pl.38.19"></a><var>38.19</var>made prior to June 30, 2010, and is irrevocable. The severance pay is payable from the <br/>
<a id="pl.38.20"></a><var>38.20</var>Minneapolis Employees Retirement Fund on June 30, 2010.<br/>
<br/>
<a id="bill.1.26.0"></a><a id="pl.38.21"></a><var>38.21</var>    Sec. 26. <b>REVISOR'S INSTRUCTION.</b><br/>
<a id="pl.38.22"></a><var>38.22</var>In the next and future editions of Minnesota Statutes, the revisor of statutes shall <br/>
<a id="pl.38.23"></a><var>38.23</var>renumber Minnesota Statutes, section 422A.101, subdivision 3, as Minnesota Statutes, <br/>
<a id="pl.38.24"></a><var>38.24</var>section 353.505, and shall renumber Minnesota Statutes, section 422A.26, as Minnesota <br/>
<a id="pl.38.25"></a><var>38.25</var>Statutes, section 353.855. The revisor of statutes shall make conforming changes in <br/>
<a id="pl.38.26"></a><var>38.26</var>Minnesota Statutes and Minnesota Rules consistent with the renumbering.<br/>
<br/>
<a id="bill.1.27.0"></a><a id="pl.38.27"></a><var>38.27</var>    Sec. 27. <b> REPEALER.</b><br/>
<a id="pl.38.28"></a><var>38.28</var>Minnesota Statutes 2008, sections 13.63, subdivision 1; 69.011, subdivision 2a; <br/>
<a id="pl.38.29"></a><var>38.29</var>356.43; 422A.01, subdivisions 1, 2, 3, 4, 4a, 5, 6, 7, 8, 9, 10, 11, 12, 13a, 17, and 18; <br/>
<a id="pl.38.30"></a><var>38.30</var>422A.02; 422A.03; 422A.04; 422A.05, subdivisions 1, 2a, 2b, 2c, 2d, 2e, 2f, 5, 6, <br/>
<a id="pl.38.31"></a><var>38.31</var>and 8; 422A.06, subdivisions 1, 2, 3, 5, 6, and 7; 422A.08, subdivision 1; 422A.09; <br/>
<a id="pl.38.32"></a><var>38.32</var>422A.10; 422A.101, subdivisions 1, 1a, 2, and 2a; 422A.11; 422A.12; 422A.13; 422A.14, <br/>
<a id="pl.38.33"></a><var>38.33</var>subdivision 1; 422A.15; 422A.151; 422A.155; 422A.156; 422A.16, subdivisions 1, 2, 3, <br/>
<a id="pl.38.34"></a><var>38.34</var>4, 5, 6, 7, 8, 9, and 10; 422A.17; 422A.18, subdivisions 1, 2, 3, 4, 5, and 7; 422A.19; <br/>
<a id="pl.39.1"></a><var>39.1</var>422A.20; 422A.21; 422A.22, subdivisions 1, 3, 4, and 6; 422A.23, subdivisions 1, 2, 5, 6, <br/>
<a id="pl.39.2"></a><var>39.2</var>7, 8, 9, 10, 11, and 12; 422A.231; 422A.24; and 422A.25, are repealed.<br/>
<a id="pl.39.3"></a><var>39.3</var>Minnesota Statutes 2009 Supplement, sections 422A.06, subdivision 8; and <br/>
<a id="pl.39.4"></a><var>39.4</var>422A.08, subdivision 5, are repealed.<br/>
<br/>
<a id="bill.1.28.0"></a><a id="pl.39.5"></a><var>39.5</var>    Sec. 28. <b>EFFECTIVE DATE.</b><br/>
<a id="pl.39.6"></a><var>39.6</var>Sections 1 to 27 are effective June 30, 2010.<br/>
<br/>
<a id="bill.2.0.0"></a>

<a id="bill.2.1.0"></a><a id="pl.39.9"></a><var>39.9</var>    Section 1. Minnesota Statutes 2009 Supplement, section 6.67, is amended to read:<br/>
<a id="pl.39.10"></a><var>39.10</var><b>6.67 PUBLIC ACCOUNTANTS; REPORT OF POSSIBLE MISCONDUCT.</b><br/>
<a id="pl.39.11"></a><var>39.11</var>    Whenever a public accountant in the course of auditing the books and affairs of a <br/>
<a id="pl.39.12"></a><var>39.12</var>political subdivision or a local public pension plan governed by section 
         <statute_ref>69.77</statute_ref>, sections <br/>
<statute_ref><a id="pl.39.13"></a><var>39.13</var>69.771
         </statute_ref> to 
         <statute_ref>69.775</statute_ref>, or chapter 354A, 422A, 423B, 423C, or 424A, discovers evidence <br/>
<a id="pl.39.14"></a><var>39.14</var>pointing to nonfeasance, misfeasance, or malfeasance, on the part of an officer or <br/>
<a id="pl.39.15"></a><var>39.15</var>employee in the conduct of duties and affairs, the public accountant shall promptly make <br/>
<a id="pl.39.16"></a><var>39.16</var>a report of such discovery to the state auditor and the county attorney of the county in <br/>
<a id="pl.39.17"></a><var>39.17</var>which the governmental unit is situated and the public accountant shall also furnish a <br/>
<a id="pl.39.18"></a><var>39.18</var>copy of the report of audit upon completion to said officers. The county attorney shall <br/>
<a id="pl.39.19"></a><var>39.19</var>act on such report in the same manner as required by law for reports made to the county <br/>
<a id="pl.39.20"></a><var>39.20</var>attorney by the state auditor.<br/>
<br/>
<a id="bill.2.2.0"></a><a id="pl.39.21"></a><var>39.21</var>    Sec. 2. Minnesota Statutes 2008, section 11A.23, subdivision 4, is amended to read:<br/>
<a id="pl.39.22"></a><var>39.22</var>    Subd. 4. <b>Covered retirement funds and plans.</b> The provisions of this section shall <br/>
<a id="pl.39.23"></a><var>39.23</var>apply to the following retirement funds and plans:<br/>
<a id="pl.39.24"></a><var>39.24</var>(1) Board of Trustees of the Minnesota State Colleges and Universities supplemental <br/>
<a id="pl.39.25"></a><var>39.25</var>retirement plan established under chapter 354C;<br/>
<a id="pl.39.26"></a><var>39.26</var>(2) state employees retirement fund established pursuant to chapter 352;<br/>
<a id="pl.39.27"></a><var>39.27</var>(3) correctional employees retirement plan established pursuant to chapter 352;<br/>
<a id="pl.39.28"></a><var>39.28</var>(4) State Patrol retirement fund established pursuant to chapter 352B;<br/>
<a id="pl.39.29"></a><var>39.29</var>(5) unclassified employees retirement plan established pursuant to chapter 352D;<br/>
<a id="pl.39.30"></a><var>39.30</var>(6) public general employees retirement fund established pursuant to chapter 353;<br/>
<a id="pl.39.31"></a><var>39.31</var>(7) public employees police and fire fund established pursuant to chapter 353;<br/>
<a id="pl.39.32"></a><var>39.32</var>(8) teachers' retirement fund established pursuant to chapter 354;<br/>
<a id="pl.40.1"></a><var>40.1</var>(9) judges' retirement fund established pursuant to chapter 490; and<br/>
<a id="pl.40.2"></a><var>40.2</var>(10) any other funds required by law to be invested by the board.<br/>
<br/>
<a id="bill.2.3.0"></a><a id="pl.40.3"></a><var>40.3</var>    Sec. 3. Minnesota Statutes 2008, section 13D.01, subdivision 1, is amended to read:<br/>
<a id="pl.40.4"></a><var>40.4</var>    Subdivision 1. <b>In executive branch, local government.</b> All meetings, including <br/>
<a id="pl.40.5"></a><var>40.5</var>executive sessions, must be open to the public<br/>
<a id="pl.40.6"></a><var>40.6</var>(a) of a state<br/>
<a id="pl.40.7"></a><var>40.7</var>(1) agency,<br/>
<a id="pl.40.8"></a><var>40.8</var>(2) board,<br/>
<a id="pl.40.9"></a><var>40.9</var>(3) commission, or<br/>
<a id="pl.40.10"></a><var>40.10</var>(4) department,<br/>
<a id="pl.40.11"></a><var>40.11</var>when required or permitted by law to transact public business in a meeting;<br/>
<a id="pl.40.12"></a><var>40.12</var>(b) of the governing body of a<br/>
<a id="pl.40.13"></a><var>40.13</var>(1) school district however organized,<br/>
<a id="pl.40.14"></a><var>40.14</var>(2) unorganized territory,<br/>
<a id="pl.40.15"></a><var>40.15</var>(3) county,<br/>
<a id="pl.40.16"></a><var>40.16</var>(4) statutory or home rule charter city,<br/>
<a id="pl.40.17"></a><var>40.17</var>(5) town, or<br/>
<a id="pl.40.18"></a><var>40.18</var>(6) other public body;<br/>
<a id="pl.40.19"></a><var>40.19</var>(c) of any<br/>
<a id="pl.40.20"></a><var>40.20</var>(1) committee,<br/>
<a id="pl.40.21"></a><var>40.21</var>(2) subcommittee,<br/>
<a id="pl.40.22"></a><var>40.22</var>(3) board,<br/>
<a id="pl.40.23"></a><var>40.23</var>(4) department, or<br/>
<a id="pl.40.24"></a><var>40.24</var>(5) commission,<br/>
<a id="pl.40.25"></a><var>40.25</var>of a public body; and<br/>
<a id="pl.40.26"></a><var>40.26</var>(d) of the governing body or a committee of:<br/>
<a id="pl.40.27"></a><var>40.27</var>(1) a statewide public pension plan defined in section 
         <statute_ref>356A.01, subdivision 24</statute_ref>; or  <br/>
<a id="pl.40.28"></a><var>40.28</var>(2) a local public pension plan governed by section 
         <statute_ref>69.77</statute_ref>, sections 
         <statute_ref>69.771</statute_ref> to 
         <statute_ref>69.775</statute_ref>, <br/>
<a id="pl.40.29"></a><var>40.29</var>or chapter 354A, 422A, or 423B.  <br/>
<br/>
<a id="bill.2.4.0"></a><a id="pl.40.30"></a><var>40.30</var>    Sec. 4. Minnesota Statutes 2008, section 43A.17, subdivision 9, is amended to read:<br/>
<a id="pl.40.31"></a><var>40.31</var>    Subd. 9. <b>Political subdivision compensation limit.</b> (a) The salary and the value of <br/>
<a id="pl.40.32"></a><var>40.32</var>all other forms of compensation of a person employed by a political subdivision of this <br/>
<a id="pl.40.33"></a><var>40.33</var>state, excluding a school district, or employed under section 
<statute_ref>422A.03</statute_ref> may not exceed 110 <br/>
<a id="pl.40.34"></a><var>40.34</var>percent of the salary of the governor as set under section 
         <statute_ref>15A.082</statute_ref>, except as provided <br/>
<a id="pl.41.1"></a><var>41.1</var>in this subdivision. For purposes of this subdivision, "political subdivision of this state" <br/>
<a id="pl.41.2"></a><var>41.2</var>includes a statutory or home rule charter city, county, town, metropolitan or regional <br/>
<a id="pl.41.3"></a><var>41.3</var>agency, or other political subdivision, but does not include a hospital, clinic, or health <br/>
<a id="pl.41.4"></a><var>41.4</var>maintenance organization owned by such a governmental unit.<br/>
<a id="pl.41.5"></a><var>41.5</var>(b) Beginning in 2006, the limit in paragraph (a) shall be adjusted annually in <br/>
<a id="pl.41.6"></a><var>41.6</var>January. The limit shall equal the limit for the prior year increased by the percentage <br/>
<a id="pl.41.7"></a><var>41.7</var>increase, if any, in the Consumer Price Index for all-urban consumers from October of the <br/>
<a id="pl.41.8"></a><var>41.8</var>second prior year to October of the immediately prior year.<br/>
<a id="pl.41.9"></a><var>41.9</var>(c) Deferred compensation and payroll allocations to purchase an individual annuity <br/>
<a id="pl.41.10"></a><var>41.10</var>contract for an employee are included in determining the employee's salary. Other forms <br/>
<a id="pl.41.11"></a><var>41.11</var>of compensation which shall be included to determine an employee's total compensation <br/>
<a id="pl.41.12"></a><var>41.12</var>are all other direct and indirect items of compensation which are not specifically excluded <br/>
<a id="pl.41.13"></a><var>41.13</var>by this subdivision. Other forms of compensation which shall not be included in a <br/>
<a id="pl.41.14"></a><var>41.14</var>determination of an employee's total compensation for the purposes of this subdivision are:<br/>
<a id="pl.41.15"></a><var>41.15</var>(1) employee benefits that are also provided for the majority of all other full-time <br/>
<a id="pl.41.16"></a><var>41.16</var>employees of the political subdivision, vacation and sick leave allowances, health and <br/>
<a id="pl.41.17"></a><var>41.17</var>dental insurance, disability insurance, term life insurance, and pension benefits or like <br/>
<a id="pl.41.18"></a><var>41.18</var>benefits the cost of which is borne by the employee or which is not subject to tax as <br/>
<a id="pl.41.19"></a><var>41.19</var>income under the Internal Revenue Code of 1986;<br/>
<a id="pl.41.20"></a><var>41.20</var>(2) dues paid to organizations that are of a civic, professional, educational, or <br/>
<a id="pl.41.21"></a><var>41.21</var>governmental nature; and<br/>
<a id="pl.41.22"></a><var>41.22</var>(3) reimbursement for actual expenses incurred by the employee which the <br/>
<a id="pl.41.23"></a><var>41.23</var>governing body determines to be directly related to the performance of job responsibilities, <br/>
<a id="pl.41.24"></a><var>41.24</var>including any relocation expenses paid during the initial year of employment.<br/>
<a id="pl.41.25"></a><var>41.25</var>The value of other forms of compensation shall be the annual cost to the political <br/>
<a id="pl.41.26"></a><var>41.26</var>subdivision for the provision of the compensation.<br/>
<a id="pl.41.27"></a><var>41.27</var>(d) The salary of a medical doctor or doctor of osteopathy occupying a position that <br/>
<a id="pl.41.28"></a><var>41.28</var>the governing body of the political subdivision has determined requires an M.D. or D.O. <br/>
<a id="pl.41.29"></a><var>41.29</var>degree is excluded from the limitation in this subdivision.<br/>
<a id="pl.41.30"></a><var>41.30</var>(e) The commissioner may increase the limitation in this subdivision for a position <br/>
<a id="pl.41.31"></a><var>41.31</var>that the commissioner has determined requires special expertise necessitating a higher <br/>
<a id="pl.41.32"></a><var>41.32</var>salary to attract or retain a qualified person. The commissioner shall review each <br/>
<a id="pl.41.33"></a><var>41.33</var>proposed increase giving due consideration to salary rates paid to other persons with <br/>
<a id="pl.41.34"></a><var>41.34</var>similar responsibilities in the state and nation. The commissioner may not increase the <br/>
<a id="pl.41.35"></a><var>41.35</var>limitation until the commissioner has presented the proposed increase to the Legislative <br/>
<a id="pl.41.36"></a><var>41.36</var>Coordinating Commission and received the commission's recommendation on it. The <br/>
<a id="pl.42.1"></a><var>42.1</var>recommendation is advisory only. If the commission does not give its recommendation <br/>
<a id="pl.42.2"></a><var>42.2</var>on a proposed increase within 30 days from its receipt of the proposal, the commission <br/>
<a id="pl.42.3"></a><var>42.3</var>is deemed to have made no recommendation. If the commissioner grants or granted an <br/>
<a id="pl.42.4"></a><var>42.4</var>increase under this paragraph, the new limitation shall be adjusted beginning in August <br/>
<a id="pl.42.5"></a><var>42.5</var>2005 and in each subsequent calendar year in January by the percentage increase equal to <br/>
<a id="pl.42.6"></a><var>42.6</var>the percentage increase, if any, in the Consumer Price Index for all-urban consumers from <br/>
<a id="pl.42.7"></a><var>42.7</var>October of the second prior year to October of the immediately prior year.<br/>
<br/>
<a id="bill.2.5.0"></a><a id="pl.42.8"></a><var>42.8</var>    Sec. 5. Minnesota Statutes 2008, section 43A.316, subdivision 8, is amended to read:<br/>
<a id="pl.42.9"></a><var>42.9</var>    Subd. 8. <b>Continuation of coverage.</b> (a) A former employee of an employer <br/>
<a id="pl.42.10"></a><var>42.10</var>participating in the program who is receiving a public pension disability benefit or an <br/>
<a id="pl.42.11"></a><var>42.11</var>annuity or has met the age and service requirements necessary to receive an annuity under <br/>
<a id="pl.42.12"></a><var>42.12</var>chapter 353, 353C, 354, 354A, 356, 422A, 423, 423A, or 424, or Minnesota Statutes <br/>
<a id="pl.42.13"></a><var>42.13</var>2008, chapter 422A, and the former employee's dependents, are eligible to participate in <br/>
<a id="pl.42.14"></a><var>42.14</var>the program. This participation is at the person's expense unless a collective bargaining <br/>
<a id="pl.42.15"></a><var>42.15</var>agreement or personnel policy provides otherwise. Premiums for these participants must <br/>
<a id="pl.42.16"></a><var>42.16</var>be established by the commissioner.<br/>
<a id="pl.42.17"></a><var>42.17</var>The commissioner may provide policy exclusions for preexisting conditions <br/>
<a id="pl.42.18"></a><var>42.18</var>only when there is a break in coverage between a participant's coverage under the <br/>
<a id="pl.42.19"></a><var>42.19</var>employment-based group insurance program and the participant's coverage under this <br/>
<a id="pl.42.20"></a><var>42.20</var>section. An employer shall notify an employee of the option to participate under this <br/>
<a id="pl.42.21"></a><var>42.21</var>paragraph no later than the effective date of retirement. The retired employee or the <br/>
<a id="pl.42.22"></a><var>42.22</var>employer of a participating group on behalf of a current or retired employee shall notify <br/>
<a id="pl.42.23"></a><var>42.23</var>the commissioner within 30 days of the effective date of retirement of intent to participate <br/>
<a id="pl.42.24"></a><var>42.24</var>in the program according to the rules established by the commissioner.<br/>
<a id="pl.42.25"></a><var>42.25</var>(b) The spouse of a deceased employee or former employee may purchase the <br/>
<a id="pl.42.26"></a><var>42.26</var>benefits provided at premiums established by the commissioner if the spouse was a <br/>
<a id="pl.42.27"></a><var>42.27</var>dependent under the employee's or former employee's coverage under this section at the <br/>
<a id="pl.42.28"></a><var>42.28</var>time of the death. The spouse remains eligible to participate in the program as long as <br/>
<a id="pl.42.29"></a><var>42.29</var>the group that included the deceased employee or former employee participates in the <br/>
<a id="pl.42.30"></a><var>42.30</var>program. Coverage under this clause must be coordinated with relevant insurance benefits <br/>
<a id="pl.42.31"></a><var>42.31</var>provided through the federally sponsored Medicare program.<br/>
<a id="pl.42.32"></a><var>42.32</var>(c) The program benefits must continue in the event of strike permitted by section <br/>
<statute_ref><a id="pl.42.33"></a><var>42.33</var>179A.18
         </statute_ref>, if the exclusive representative chooses to have coverage continue and the <br/>
<a id="pl.42.34"></a><var>42.34</var>employee pays the total monthly premiums when due. <br/>
<a id="pl.42.35"></a><var>42.35</var>(d) A participant who discontinues coverage may not reenroll.<br/>
<a id="pl.43.1"></a><var>43.1</var>Persons participating under these paragraphs shall make appropriate premium <br/>
<a id="pl.43.2"></a><var>43.2</var>payments in the time and manner established by the commissioner.<br/>
<br/>
<a id="bill.2.6.0"></a><a id="pl.43.3"></a><var>43.3</var>    Sec. 6. Minnesota Statutes 2009 Supplement, section 69.011, subdivision 1, is <br/>
<a id="pl.43.4"></a><var>43.4</var>amended to read:<br/>
<a id="pl.43.5"></a><var>43.5</var>    Subdivision 1. <b>Definitions.</b> Unless the language or context clearly indicates that <br/>
<a id="pl.43.6"></a><var>43.6</var>a different meaning is intended, the following words and terms, for the purposes of this <br/>
<a id="pl.43.7"></a><var>43.7</var>chapter and chapters 423, 423A, 424 and 424A, have the meanings ascribed to them:<br/>
<a id="pl.43.8"></a><var>43.8</var>    (a) "Commissioner" means the commissioner of revenue.<br/>
<a id="pl.43.9"></a><var>43.9</var>    (b) "Municipality" means:<br/>
<a id="pl.43.10"></a><var>43.10</var>    (1) a home rule charter or statutory city;<br/>
<a id="pl.43.11"></a><var>43.11</var>    (2) an organized town;<br/>
<a id="pl.43.12"></a><var>43.12</var>    (3) a park district subject to chapter 398;<br/>
<a id="pl.43.13"></a><var>43.13</var>    (4) the University of Minnesota;<br/>
<a id="pl.43.14"></a><var>43.14</var>    (5) for purposes of the fire state aid program only, an American Indian tribal <br/>
<a id="pl.43.15"></a><var>43.15</var>government entity located within a federally recognized American Indian reservation;<br/>
<a id="pl.43.16"></a><var>43.16</var>    (6) for purposes of the police state aid program only, an American Indian tribal <br/>
<a id="pl.43.17"></a><var>43.17</var>government with a tribal police department which exercises state arrest powers under <br/>
<a id="pl.43.18"></a><var>43.18</var>section 
         <statute_ref>626.90</statute_ref>, 
         <statute_ref>626.91</statute_ref>, 
         <statute_ref>626.92</statute_ref>, or 
         <statute_ref>626.93</statute_ref>; <br/>
<a id="pl.43.19"></a><var>43.19</var>    (7) for purposes of the police state aid program only, the Metropolitan Airports <br/>
<a id="pl.43.20"></a><var>43.20</var>Commission with respect to peace officers covered under chapter 422A; and<br/>
<a id="pl.43.21"></a><var>43.21</var>    (8) for purposes of the police state aid program only, the Department of Natural <br/>
<a id="pl.43.22"></a><var>43.22</var>Resources and the Department of Public Safety with respect to peace officers covered <br/>
<a id="pl.43.23"></a><var>43.23</var>under chapter 352B.<br/>
<a id="pl.43.24"></a><var>43.24</var>    (c) "Minnesota Firetown Premium Report" means a form prescribed by the <br/>
<a id="pl.43.25"></a><var>43.25</var>commissioner containing space for reporting by insurers of fire, lightning, sprinkler <br/>
<a id="pl.43.26"></a><var>43.26</var>leakage and extended coverage premiums received upon risks located or to be performed <br/>
<a id="pl.43.27"></a><var>43.27</var>in this state less return premiums and dividends.<br/>
<a id="pl.43.28"></a><var>43.28</var>    (d) "Firetown" means the area serviced by any municipality having a qualified fire <br/>
<a id="pl.43.29"></a><var>43.29</var>department or a qualified incorporated fire department having a subsidiary volunteer <br/>
<a id="pl.43.30"></a><var>43.30</var>firefighters' relief association.<br/>
<a id="pl.43.31"></a><var>43.31</var>    (e) "Market value" means latest available market value of all property in a taxing <br/>
<a id="pl.43.32"></a><var>43.32</var>jurisdiction, whether the property is subject to taxation, or exempt from ad valorem <br/>
<a id="pl.43.33"></a><var>43.33</var>taxation obtained from information which appears on abstracts filed with the commissioner <br/>
<a id="pl.43.34"></a><var>43.34</var>of revenue or equalized by the State Board of Equalization.<br/>
<a id="pl.44.1"></a><var>44.1</var>    (f) "Minnesota Aid to Police Premium Report" means a form prescribed by the <br/>
<a id="pl.44.2"></a><var>44.2</var>commissioner for reporting by each fire and casualty insurer of all premiums received <br/>
<a id="pl.44.3"></a><var>44.3</var>upon direct business received by it in this state, or by its agents for it, in cash or otherwise, <br/>
<a id="pl.44.4"></a><var>44.4</var>during the preceding calendar year, with reference to insurance written for insuring against <br/>
<a id="pl.44.5"></a><var>44.5</var>the perils contained in auto insurance coverages as reported in the Minnesota business <br/>
<a id="pl.44.6"></a><var>44.6</var>schedule of the annual financial statement which each insurer is required to file with <br/>
<a id="pl.44.7"></a><var>44.7</var>the commissioner in accordance with the governing laws or rules less return premiums <br/>
<a id="pl.44.8"></a><var>44.8</var>and dividends.<br/>
<a id="pl.44.9"></a><var>44.9</var>    (g) "Peace officer" means any person:<br/>
<a id="pl.44.10"></a><var>44.10</var>    (1) whose primary source of income derived from wages is from direct employment <br/>
<a id="pl.44.11"></a><var>44.11</var>by a municipality or county as a law enforcement officer on a full-time basis of not less <br/>
<a id="pl.44.12"></a><var>44.12</var>than 30 hours per week;<br/>
<a id="pl.44.13"></a><var>44.13</var>    (2) who has been employed for a minimum of six months prior to December 31 <br/>
<a id="pl.44.14"></a><var>44.14</var>preceding the date of the current year's certification under subdivision 2, clause (b);<br/>
<a id="pl.44.15"></a><var>44.15</var>    (3) who is sworn to enforce the general criminal laws of the state and local <br/>
<a id="pl.44.16"></a><var>44.16</var>ordinances;<br/>
<a id="pl.44.17"></a><var>44.17</var>    (4) who is licensed by the Peace Officers Standards and Training Board and is <br/>
<a id="pl.44.18"></a><var>44.18</var>authorized to arrest with a warrant; and<br/>
<a id="pl.44.19"></a><var>44.19</var>    (5) who is a member of a local police relief association to which section 
<statute_ref>69.77 <br/>
<a id="pl.44.20"></a><var>44.20</var></statute_ref>applies the Minneapolis Police Relief Association, the State Patrol retirement plan, or the <br/>
<a id="pl.44.21"></a><var>44.21</var>public employees police and fire fund, or the Minneapolis Employees Retirement Fund. <br/>
<a id="pl.44.22"></a><var>44.22</var>    (h) "Full-time equivalent number of peace officers providing contract service" means <br/>
<a id="pl.44.23"></a><var>44.23</var>the integral or fractional number of peace officers which would be necessary to provide <br/>
<a id="pl.44.24"></a><var>44.24</var>the contract service if all peace officers providing service were employed on a full-time <br/>
<a id="pl.44.25"></a><var>44.25</var>basis as defined by the employing unit and the municipality receiving the contract service.<br/>
<a id="pl.44.26"></a><var>44.26</var>    (i) "Retirement benefits other than a service pension" means any disbursement <br/>
<a id="pl.44.27"></a><var>44.27</var>authorized under section 
         <statute_ref>424A.05, subdivision 3</statute_ref>, clauses (2) and (3). <br/>
<a id="pl.44.28"></a><var>44.28</var>    (j) "Municipal clerk, municipal clerk-treasurer, or county auditor" means the person <br/>
<a id="pl.44.29"></a><var>44.29</var>who was elected or appointed to the specified position or, in the absence of the person, <br/>
<a id="pl.44.30"></a><var>44.30</var>another person who is designated by the applicable governing body. In a park district, <br/>
<a id="pl.44.31"></a><var>44.31</var>the clerk is the secretary of the board of park district commissioners. In the case of the <br/>
<a id="pl.44.32"></a><var>44.32</var>University of Minnesota, the clerk is that official designated by the Board of Regents. <br/>
<a id="pl.44.33"></a><var>44.33</var>For the Metropolitan Airports Commission, the clerk is the person designated by the <br/>
<a id="pl.44.34"></a><var>44.34</var>commission. For the Department of Natural Resources or the Department of Public Safety, <br/>
<a id="pl.44.35"></a><var>44.35</var>the clerk is the respective commissioner. For a tribal police department which exercises <br/>
<a id="pl.45.1"></a><var>45.1</var>state arrest powers under section 
         <statute_ref>626.90</statute_ref>, 
         <statute_ref>626.91</statute_ref>, 
         <statute_ref>626.92</statute_ref>, or 
         <statute_ref>626.93</statute_ref>, the clerk is the person <br/>
<a id="pl.45.2"></a><var>45.2</var>designated by the applicable American Indian tribal government. <br/>
<a id="pl.45.3"></a><var>45.3</var>(k) "Voluntary statewide lump-sum volunteer firefighter retirement plan" means the <br/>
<a id="pl.45.4"></a><var>45.4</var>retirement plan established by chapter 353G.<br/>
<br/>
<a id="bill.2.7.0"></a><a id="pl.45.5"></a><var>45.5</var>    Sec. 7. Minnesota Statutes 2008, section 69.021, subdivision 10, is amended to read:<br/>
<a id="pl.45.6"></a><var>45.6</var>    Subd. 10. <b>Reduction in police state aid apportionment.</b> (a) The commissioner of <br/>
<a id="pl.45.7"></a><var>45.7</var>revenue shall reduce the apportionment of police state aid under subdivisions 5, paragraph <br/>
<a id="pl.45.8"></a><var>45.8</var>(b), 6, and 7a, for eligible employer units by any excess police state aid.<br/>
<a id="pl.45.9"></a><var>45.9</var>(b)  "Excess police state aid" is:<br/>
<a id="pl.45.10"></a><var>45.10</var>(1) for counties and for municipalities in which police retirement coverage is <br/>
<a id="pl.45.11"></a><var>45.11</var>provided wholly by the public employees police and fire fund and all police officers are <br/>
<a id="pl.45.12"></a><var>45.12</var>members of the plan governed by sections 
         <statute_ref>353.63</statute_ref> to 
         <statute_ref>353.657</statute_ref>, the amount in excess of the <br/>
<a id="pl.45.13"></a><var>45.13</var>employer's total prior calendar year obligation as defined in paragraph (c), as certified by <br/>
<a id="pl.45.14"></a><var>45.14</var>the executive director of the Public Employees Retirement Association; <br/>
<a id="pl.45.15"></a><var>45.15</var>(2) for municipalities in which police retirement coverage is provided in part by the <br/>
<a id="pl.45.16"></a><var>45.16</var>public employees police and fire fund governed by sections 
         <statute_ref>353.63</statute_ref> to 
         <statute_ref>353.657</statute_ref> and in <br/>
<a id="pl.45.17"></a><var>45.17</var>part by a local police consolidation account governed by chapter 353A, and established <br/>
<a id="pl.45.18"></a><var>45.18</var>before March 2, 1999, for which the municipality declined merger under section 
         <statute_ref>353.665, <br/>
<a id="pl.45.19"></a><var>45.19</var>subdivision 1
         </statute_ref>, or established after March 1, 1999, the amount in excess of the employer's <br/>
<a id="pl.45.20"></a><var>45.20</var>total prior calendar year obligation as defined in paragraph (c), plus the amount of the <br/>
<a id="pl.45.21"></a><var>45.21</var>employer's total prior calendar year obligation under section 
         <statute_ref>353A.09, subdivision 5</statute_ref>, <br/>
<a id="pl.45.22"></a><var>45.22</var>paragraphs (a) and (b), as certified by the executive director of the Public Employees <br/>
<a id="pl.45.23"></a><var>45.23</var>Retirement Association; <br/>
<a id="pl.45.24"></a><var>45.24</var>(3)  for municipalities in which police retirement coverage is provided by the public <br/>
<a id="pl.45.25"></a><var>45.25</var>employees police and fire plan governed by sections 
         <statute_ref>353.63</statute_ref> to 
         <statute_ref>353.657</statute_ref>, in which police <br/>
<a id="pl.45.26"></a><var>45.26</var>retirement coverage was provided by a police consolidation account under chapter <br/>
<a id="pl.45.27"></a><var>45.27</var>353A before July 1, 1999, and for which the municipality has an additional municipal <br/>
<a id="pl.45.28"></a><var>45.28</var>contribution under section 
         <statute_ref>353.665, subdivision 8</statute_ref>, paragraph (b), the amount in excess of <br/>
<a id="pl.45.29"></a><var>45.29</var>the employer's total prior calendar year obligation as defined in paragraph (c), plus the <br/>
<a id="pl.45.30"></a><var>45.30</var>amount of any additional municipal contribution under section 
         <statute_ref>353.665, subdivision 8</statute_ref>, <br/>
<a id="pl.45.31"></a><var>45.31</var>paragraph (b), until the year 2010, as certified by the executive director of the Public <br/>
<a id="pl.45.32"></a><var>45.32</var>Employees Retirement Association; <br/>
<a id="pl.45.33"></a><var>45.33</var>(4) for municipalities in which police retirement coverage is provided in part by the <br/>
<a id="pl.45.34"></a><var>45.34</var>public employees police and fire fund governed by sections 
         <statute_ref>353.63</statute_ref> to 
         <statute_ref>353.657</statute_ref> and in part <br/>
<a id="pl.45.35"></a><var>45.35</var>by a local police relief association governed by sections 
         <statute_ref>69.77</statute_ref> and 
         <statute_ref>423A.01</statute_ref>, the amount <br/>
<a id="pl.46.1"></a><var>46.1</var>in excess of the employer's total prior calendar year obligation as defined in paragraph <br/>
<a id="pl.46.2"></a><var>46.2</var>(c), as certified by the executive director of the public employees retirement association, <br/>
<a id="pl.46.3"></a><var>46.3</var>plus the amount of the financial requirements of the relief association certified to the <br/>
<a id="pl.46.4"></a><var>46.4</var>applicable municipality during the prior calendar year under section 
         <statute_ref>69.77, subdivisions 4 <br/>
<a id="pl.46.5"></a><var>46.5</var>and 5
         </statute_ref>, reduced by the amount of member contributions deducted from the covered salary <br/>
<a id="pl.46.6"></a><var>46.6</var>of the relief association during the prior calendar year under section 
         <statute_ref>69.77, subdivision 3</statute_ref>, <br/>
<a id="pl.46.7"></a><var>46.7</var>as certified by the chief administrative officer of the applicable municipality; <br/>
<a id="pl.46.8"></a><var>46.8</var>(5) for the Metropolitan Airports Commission, if there are police officers hired <br/>
<a id="pl.46.9"></a><var>46.9</var>before July 1, 1978, with retirement coverage by the Minneapolis Employees Retirement <br/>
<a id="pl.46.10"></a><var>46.10</var>Fund remaining, the amount in excess of the commission's total prior calendar year <br/>
<a id="pl.46.11"></a><var>46.11</var>obligation as defined in paragraph (c), as certified by the executive director of the Public <br/>
<a id="pl.46.12"></a><var>46.12</var>Employees Retirement Association, plus the amount determined by expressing the <br/>
<a id="pl.46.13"></a><var>46.13</var>commission's total prior calendar year contribution to the Minneapolis Employees <br/>
<a id="pl.46.14"></a><var>46.14</var>Retirement Fund under section 
<statute_ref>422A.101, subdivisions 2 and 2a</statute_ref>, as a percentage of <br/>
<a id="pl.46.15"></a><var>46.15</var>the commission's total prior calendar year covered payroll for commission employees <br/>
<a id="pl.46.16"></a><var>46.16</var>covered by the Minneapolis Employees Retirement Fund and applying that percentage <br/>
<a id="pl.46.17"></a><var>46.17</var>to the commission's total prior calendar year covered payroll for commission police <br/>
<a id="pl.46.18"></a><var>46.18</var>officers covered by the Minneapolis Employees Retirement Fund, as certified by the chief <br/>
<a id="pl.46.19"></a><var>46.19</var>administrative officer of the Metropolitan Airports Commission; and <br/>
<a id="pl.46.20"></a><var>46.20</var>(6) for the Department of Natural Resources and for the Department of Public <br/>
<a id="pl.46.21"></a><var>46.21</var>Safety, the amount in excess of the employer's total prior calendar year obligation under <br/>
<a id="pl.46.22"></a><var>46.22</var>section 
         <statute_ref>352B.02, subdivision 1c</statute_ref>, for plan members who are peace officers under section <br/>
<statute_ref><a id="pl.46.23"></a><var>46.23</var>69.011, subdivision 1
         </statute_ref>, clause (g), as certified by the executive director of the Minnesota <br/>
<a id="pl.46.24"></a><var>46.24</var>State Retirement System. <br/>
<a id="pl.46.25"></a><var>46.25</var>(c) The employer's total prior calendar year obligation with respect to the public <br/>
<a id="pl.46.26"></a><var>46.26</var>employees police and fire plan is the total prior calendar year obligation under section <br/>
<statute_ref><a id="pl.46.27"></a><var>46.27</var>353.65, subdivision 3
         </statute_ref>, for police officers as defined in section 
         <statute_ref>353.64, subdivision 2</statute_ref>, <br/>
<a id="pl.46.28"></a><var>46.28</var>and the actual total prior calendar year obligation under section 
         <statute_ref>353.65, subdivision 3</statute_ref>, <br/>
<a id="pl.46.29"></a><var>46.29</var>for firefighters, as defined in section 
         <statute_ref>353.64, subdivision 3</statute_ref>, but not to exceed for those <br/>
<a id="pl.46.30"></a><var>46.30</var>firefighters the applicable following amounts: <br/>
<table>
<col width="50px"/>
<col width="5"/>
<col width="35"/>
<col width="15"/>
<col width="10"/>
<tr>
<td><a id="pl.46.31"></a><var>46.31</var><br/>
</td>
<td></td>
<td>Municipality<br/>
</td>
<td align="right">Maximum Amount<br/>
</td>
<td></td>
</tr>
<tr>
<td></td>
<td></td>
<td></td>
<td align="right"></td>
<td align="right"></td>
</tr>
<tr>
<td><a id="pl.46.32"></a><var>46.32</var><br/>
</td>
<td></td>
<td>Albert Lea<br/>
</td>
<td align="right">$54,157.01<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.46.33"></a><var>46.33</var><br/>
</td>
<td></td>
<td>Anoka<br/>
</td>
<td align="right">10,399.31<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.46.34"></a><var>46.34</var><br/>
</td>
<td></td>
<td>Apple Valley<br/>
</td>
<td align="right">5,442.44<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.46.35"></a><var>46.35</var><br/>
</td>
<td></td>
<td>Austin<br/>
</td>
<td align="right">49,864.73<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.46.36"></a><var>46.36</var><br/>
</td>
<td></td>
<td>Bemidji<br/>
</td>
<td align="right">27,671.38<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.46.37"></a><var>46.37</var><br/>
</td>
<td></td>
<td>Brooklyn Center<br/>
</td>
<td align="right">6,605.92<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.47.1"></a><var>47.1</var><br/>
</td>
<td></td>
<td>Brooklyn Park<br/>
</td>
<td align="right">24,002.26<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.47.2"></a><var>47.2</var><br/>
</td>
<td></td>
<td>Burnsville<br/>
</td>
<td align="right">15,956.00<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.47.3"></a><var>47.3</var><br/>
</td>
<td></td>
<td>Cloquet<br/>
</td>
<td align="right">4,260.49<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.47.4"></a><var>47.4</var><br/>
</td>
<td></td>
<td>Coon Rapids<br/>
</td>
<td align="right">39,920.00<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.47.5"></a><var>47.5</var><br/>
</td>
<td></td>
<td>Cottage Grove<br/>
</td>
<td align="right">8,588.48<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.47.6"></a><var>47.6</var><br/>
</td>
<td></td>
<td>Crystal<br/>
</td>
<td align="right">5,855.00<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.47.7"></a><var>47.7</var><br/>
</td>
<td></td>
<td>East Grand Forks<br/>
</td>
<td align="right">51,009.88<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.47.8"></a><var>47.8</var><br/>
</td>
<td></td>
<td>Edina<br/>
</td>
<td align="right">32,251.00<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.47.9"></a><var>47.9</var><br/>
</td>
<td></td>
<td>Elk River<br/>
</td>
<td align="right">5,216.55<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.47.10"></a><var>47.10</var><br/>
</td>
<td></td>
<td>Ely<br/>
</td>
<td align="right">13,584.16<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.47.11"></a><var>47.11</var><br/>
</td>
<td></td>
<td>Eveleth<br/>
</td>
<td align="right">16,288.27<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.47.12"></a><var>47.12</var><br/>
</td>
<td></td>
<td>Fergus Falls<br/>
</td>
<td align="right">6,742.00<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.47.13"></a><var>47.13</var><br/>
</td>
<td></td>
<td>Fridley<br/>
</td>
<td align="right">33,420.64<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.47.14"></a><var>47.14</var><br/>
</td>
<td></td>
<td>Golden Valley<br/>
</td>
<td align="right">11,744.61<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.47.15"></a><var>47.15</var><br/>
</td>
<td></td>
<td>Hastings<br/>
</td>
<td align="right">16,561.00<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.47.16"></a><var>47.16</var><br/>
</td>
<td></td>
<td>Hopkins<br/>
</td>
<td align="right">4,324.23<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.47.17"></a><var>47.17</var><br/>
</td>
<td></td>
<td>International Falls<br/>
</td>
<td align="right">14,400.69<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.47.18"></a><var>47.18</var><br/>
</td>
<td></td>
<td>Lakeville<br/>
</td>
<td align="right">782.35<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.47.19"></a><var>47.19</var><br/>
</td>
<td></td>
<td>Lino Lakes<br/>
</td>
<td align="right">5,324.00<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.47.20"></a><var>47.20</var><br/>
</td>
<td></td>
<td>Little Falls<br/>
</td>
<td align="right">7,889.41<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.47.21"></a><var>47.21</var><br/>
</td>
<td></td>
<td>Maple Grove<br/>
</td>
<td align="right">6,707.54<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.47.22"></a><var>47.22</var><br/>
</td>
<td></td>
<td>Maplewood<br/>
</td>
<td align="right">8,476.69<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.47.23"></a><var>47.23</var><br/>
</td>
<td></td>
<td>Minnetonka<br/>
</td>
<td align="right">10,403.00<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.47.24"></a><var>47.24</var><br/>
</td>
<td></td>
<td>Montevideo<br/>
</td>
<td align="right">1,307.66<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.47.25"></a><var>47.25</var><br/>
</td>
<td></td>
<td>Moorhead<br/>
</td>
<td align="right">68,069.26<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.47.26"></a><var>47.26</var><br/>
</td>
<td></td>
<td>New Hope<br/>
</td>
<td align="right">6,739.72<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.47.27"></a><var>47.27</var><br/>
</td>
<td></td>
<td>North St. Paul<br/>
</td>
<td align="right">4,241.14<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.47.28"></a><var>47.28</var><br/>
</td>
<td></td>
<td>Northfield<br/>
</td>
<td align="right">770.63<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.47.29"></a><var>47.29</var><br/>
</td>
<td></td>
<td>Owatonna<br/>
</td>
<td align="right">37,292.67<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.47.30"></a><var>47.30</var><br/>
</td>
<td></td>
<td>Plymouth<br/>
</td>
<td align="right">6,754.71<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.47.31"></a><var>47.31</var><br/>
</td>
<td></td>
<td>Red Wing<br/>
</td>
<td align="right">3,504.01<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.47.32"></a><var>47.32</var><br/>
</td>
<td></td>
<td>Richfield<br/>
</td>
<td align="right">53,757.96<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.47.33"></a><var>47.33</var><br/>
</td>
<td></td>
<td>RosemontRosemount<br/>
</td>
<td align="right">1,712.55<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.47.34"></a><var>47.34</var><br/>
</td>
<td></td>
<td>Roseville<br/>
</td>
<td align="right">9,854.51<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.47.35"></a><var>47.35</var><br/>
</td>
<td></td>
<td>St. Anthony<br/>
</td>
<td align="right">33,055.00<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.47.36"></a><var>47.36</var><br/>
</td>
<td></td>
<td>St. Louis Park<br/>
</td>
<td align="right">53,643.11<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.47.37"></a><var>47.37</var><br/>
</td>
<td></td>
<td>Thief River Falls<br/>
</td>
<td align="right">28,365.04<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.47.38"></a><var>47.38</var><br/>
</td>
<td></td>
<td>Virginia<br/>
</td>
<td align="right">31,164.46<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.47.39"></a><var>47.39</var><br/>
</td>
<td></td>
<td>Waseca<br/>
</td>
<td align="right">11,135.17<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.47.40"></a><var>47.40</var><br/>
</td>
<td></td>
<td>West St. Paul<br/>
</td>
<td align="right">15,707.20<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.47.41"></a><var>47.41</var><br/>
</td>
<td></td>
<td>White Bear Lake<br/>
</td>
<td align="right">6,521.04<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.47.42"></a><var>47.42</var><br/>
</td>
<td></td>
<td>Woodbury<br/>
</td>
<td align="right">3,613.00<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.47.43"></a><var>47.43</var><br/>
</td>
<td></td>
<td>any other municipality<br/>
</td>
<td align="right">0.00<br/>
</td>
<td></td>
</tr>
</table><a id="pl.48.1"></a><var>48.1</var>(d) The total amount of excess police state aid must be deposited in the excess <br/>
<a id="pl.48.2"></a><var>48.2</var>police state-aid account in the general fund, administered and distributed as provided <br/>
<a id="pl.48.3"></a><var>48.3</var>in subdivision 11.<br/>
<br/>
<a id="bill.2.8.0"></a><a id="pl.48.4"></a><var>48.4</var>    Sec. 8. Minnesota Statutes 2009 Supplement, section 69.031, subdivision 5, is <br/>
<a id="pl.48.5"></a><var>48.5</var>amended to read:<br/>
<a id="pl.48.6"></a><var>48.6</var>    Subd. 5. <b>Deposit of state aid.</b> (a) If the municipality or the independent nonprofit <br/>
<a id="pl.48.7"></a><var>48.7</var>firefighting corporation is covered by the voluntary statewide lump-sum volunteer <br/>
<a id="pl.48.8"></a><var>48.8</var>firefighter retirement plan under chapter 353G, the executive director shall credit the fire <br/>
<a id="pl.48.9"></a><var>48.9</var>state aid against future municipal contribution requirements under section 
         <statute_ref>353G.08 </statute_ref>and <br/>
<a id="pl.48.10"></a><var>48.10</var>shall notify the municipality or independent nonprofit firefighting corporation of the fire <br/>
<a id="pl.48.11"></a><var>48.11</var>state aid so credited at least annually. If the municipality or the independent nonprofit <br/>
<a id="pl.48.12"></a><var>48.12</var>firefighting corporation is not covered by the voluntary statewide lump-sum volunteer <br/>
<a id="pl.48.13"></a><var>48.13</var>firefighter retirement plan, the municipal treasurer shall, within 30 days after receipt, <br/>
<a id="pl.48.14"></a><var>48.14</var>transmit the fire state aid to the treasurer of the duly incorporated firefighters' relief <br/>
<a id="pl.48.15"></a><var>48.15</var>association if there is one organized and the association has filed a financial report with the <br/>
<a id="pl.48.16"></a><var>48.16</var>municipality. If the relief association has not filed a financial report with the municipality, <br/>
<a id="pl.48.17"></a><var>48.17</var>the municipal treasurer shall delay transmission of the fire state aid to the relief association <br/>
<a id="pl.48.18"></a><var>48.18</var>until the complete financial report is filed. If the municipality or independent nonprofit <br/>
<a id="pl.48.19"></a><var>48.19</var>firefighting corporation is not covered by the voluntary statewide lump-sum volunteer <br/>
<a id="pl.48.20"></a><var>48.20</var>firefighter retirement plan, if there is no relief association organized, or if the association <br/>
<a id="pl.48.21"></a><var>48.21</var>has dissolved or has been removed as trustees of state aid, then the treasurer of the <br/>
<a id="pl.48.22"></a><var>48.22</var>municipality shall deposit the money in the municipal treasury and the money may be <br/>
<a id="pl.48.23"></a><var>48.23</var>disbursed only for the purposes and in the manner set forth in section 
         <statute_ref>424A.08</statute_ref> or for the <br/>
<a id="pl.48.24"></a><var>48.24</var>payment of the employer contribution requirement with respect to firefighters covered by <br/>
<a id="pl.48.25"></a><var>48.25</var>the public employees police and fire retirement plan under section 
         <statute_ref>353.65, subdivision 3</statute_ref>.<br/>
<a id="pl.48.26"></a><var>48.26</var>(b) The municipal treasurer, upon receipt of the police state aid, shall disburse the <br/>
<a id="pl.48.27"></a><var>48.27</var>police state aid in the following manner:<br/>
<a id="pl.48.28"></a><var>48.28</var>(1) For a municipality in which a local police relief association exists and all peace <br/>
<a id="pl.48.29"></a><var>48.29</var>officers are members of the association, the total state aid must be transmitted to the <br/>
<a id="pl.48.30"></a><var>48.30</var>treasurer of the relief association within 30 days of the date of receipt, and the treasurer <br/>
<a id="pl.48.31"></a><var>48.31</var>of the relief association shall immediately deposit the total state aid in the special fund <br/>
<a id="pl.48.32"></a><var>48.32</var>of the relief association;<br/>
<a id="pl.48.33"></a><var>48.33</var>(2) For a municipality in which police retirement coverage is provided by the public <br/>
<a id="pl.48.34"></a><var>48.34</var>employees police and fire fund and all peace officers are members of the fund, including <br/>
<a id="pl.48.35"></a><var>48.35</var>municipalities covered by section 
         <statute_ref>353.665</statute_ref>, the total state aid must be applied toward the <br/>
<a id="pl.49.1"></a><var>49.1</var>municipality's employer contribution to the public employees police and fire fund under <br/>
<a id="pl.49.2"></a><var>49.2</var>sections 
         <statute_ref>353.65, subdivision 3</statute_ref>, and 
         <statute_ref>353.665, subdivision 8</statute_ref>, paragraph (b), if applicable; or <br/>
<a id="pl.49.3"></a><var>49.3</var>(3) For a municipality other than a city of the first class with a population of more <br/>
<a id="pl.49.4"></a><var>49.4</var>than 300,000 in which both a police relief association exists and police retirement <br/>
<a id="pl.49.5"></a><var>49.5</var>coverage is provided in part by the public employees police and fire fund, the municipality <br/>
<a id="pl.49.6"></a><var>49.6</var>may elect at its option to transmit the total state aid to the treasurer of the relief association <br/>
<a id="pl.49.7"></a><var>49.7</var>as provided in clause (1), to use the total state aid to apply toward the municipality's <br/>
<a id="pl.49.8"></a><var>49.8</var>employer contribution to the public employees police and fire fund subject to all the <br/>
<a id="pl.49.9"></a><var>49.9</var>provisions set forth in clause (2), or to allot the total state aid proportionately to be <br/>
<a id="pl.49.10"></a><var>49.10</var>transmitted to the police relief association as provided in this subdivision and to apply <br/>
<a id="pl.49.11"></a><var>49.11</var>toward the municipality's employer contribution to the public employees police and fire <br/>
<a id="pl.49.12"></a><var>49.12</var>fund subject to the provisions of clause (2) on the basis of the respective number of active <br/>
<a id="pl.49.13"></a><var>49.13</var>full-time peace officers, as defined in section 
         <statute_ref>69.011, subdivision 1</statute_ref>, clause (g). <br/>
<a id="pl.49.14"></a><var>49.14</var>For a city of the first class with a population of more than 300,000, in addition, the <br/>
<a id="pl.49.15"></a><var>49.15</var>city may elect to allot the appropriate portion of the total police state aid to apply toward <br/>
<a id="pl.49.16"></a><var>49.16</var>the employer contribution of the city to the public employees police and fire fund based <br/>
<a id="pl.49.17"></a><var>49.17</var>on the covered salary of police officers covered by the fund each payroll period and to <br/>
<a id="pl.49.18"></a><var>49.18</var>transmit the balance to the police relief association; or<br/>
<a id="pl.49.19"></a><var>49.19</var>(4) For a municipality in which police retirement coverage is provided in part by <br/>
<a id="pl.49.20"></a><var>49.20</var>the public employees police and fire fund and in part by a local police consolidation <br/>
<a id="pl.49.21"></a><var>49.21</var>account governed by chapter 353A and established before March 2, 1999, for which the <br/>
<a id="pl.49.22"></a><var>49.22</var>municipality declined merger under section 
         <statute_ref>353.665, subdivision 1</statute_ref>, or established after <br/>
<a id="pl.49.23"></a><var>49.23</var>March 1, 1999, the total police state aid must be applied towards the municipality's total <br/>
<a id="pl.49.24"></a><var>49.24</var>employer contribution to the public employees police and fire fund and to the local police <br/>
<a id="pl.49.25"></a><var>49.25</var>consolidation account under sections 
         <statute_ref>353.65, subdivision 3</statute_ref>, and 
         <statute_ref>353A.09, subdivision 5</statute_ref>. <br/>
<a id="pl.49.26"></a><var>49.26</var>(c) The county treasurer, upon receipt of the police state aid for the county, shall <br/>
<a id="pl.49.27"></a><var>49.27</var>apply the total state aid toward the county's employer contribution to the public employees <br/>
<a id="pl.49.28"></a><var>49.28</var>police and fire fund under section 
         <statute_ref>353.65, subdivision 3</statute_ref>. <br/>
<a id="pl.49.29"></a><var>49.29</var>(d) The designated Metropolitan Airports Commission official, upon receipt of the <br/>
<a id="pl.49.30"></a><var>49.30</var>police state aid for the Metropolitan Airports Commission, shall apply the total police <br/>
<a id="pl.49.31"></a><var>49.31</var>state aid first toward the commission's employer contribution for police officers to the <br/>
<a id="pl.49.32"></a><var>49.32</var>Minneapolis Employees Retirement Fund under section 
<statute_ref>422A.101, subdivision 2a</statute_ref>, and, if <br/>
<a id="pl.49.33"></a><var>49.33</var>there is any amount of police state aid remaining, shall apply that remainder toward the <br/>
<a id="pl.49.34"></a><var>49.34</var>commission's employer contribution for police officers to the public employees police and <br/>
<a id="pl.49.35"></a><var>49.35</var>fire plan under section 
         <statute_ref>353.65, subdivision 3</statute_ref>. <br/>
<a id="pl.50.1"></a><var>50.1</var>(e) The police state aid apportioned to the Departments of Public Safety and Natural <br/>
<a id="pl.50.2"></a><var>50.2</var>Resources under section 
         <statute_ref>69.021, subdivision 7a</statute_ref>, is appropriated to the commissioner <br/>
<a id="pl.50.3"></a><var>50.3</var>of management and budget for transfer to the funds and accounts from which the <br/>
<a id="pl.50.4"></a><var>50.4</var>salaries of peace officers certified under section 
         <statute_ref>69.011, subdivision 2a 2b</statute_ref>, are paid. <br/>
<a id="pl.50.5"></a><var>50.5</var>The commissioner of revenue shall certify to the commissioners of public safety, <br/>
<a id="pl.50.6"></a><var>50.6</var>natural resources, and management and budget the amounts to be transferred from the <br/>
<a id="pl.50.7"></a><var>50.7</var>appropriation for police state aid. The commissioners of public safety and natural <br/>
<a id="pl.50.8"></a><var>50.8</var>resources shall certify to the commissioner of management and budget the amounts to be <br/>
<a id="pl.50.9"></a><var>50.9</var>credited to each of the funds and accounts from which the peace officers employed by their <br/>
<a id="pl.50.10"></a><var>50.10</var>respective departments are paid. Each commissioner shall allocate the police state aid first <br/>
<a id="pl.50.11"></a><var>50.11</var>for employer contributions for employees funded from the general fund and then for <br/>
<a id="pl.50.12"></a><var>50.12</var>employer contributions for employees funded from other funds. For peace officers whose <br/>
<a id="pl.50.13"></a><var>50.13</var>salaries are paid from the general fund, the amounts transferred from the appropriation <br/>
<a id="pl.50.14"></a><var>50.14</var>for police state aid must be canceled to the general fund. <br/>
<br/>
<a id="bill.2.9.0"></a><a id="pl.50.15"></a><var>50.15</var>    Sec. 9. Minnesota Statutes 2008, section 126C.41, subdivision 3, is amended to read:<br/>
<a id="pl.50.16"></a><var>50.16</var>    Subd. 3. <b>Retirement levies.</b> (a) In 1991 and each year thereafter, a district to which <br/>
<a id="pl.50.17"></a><var>50.17</var>this subdivision applies may levy an additional amount required for contributions to the <br/>
<a id="pl.50.18"></a><var>50.18</var>general employees retirement plan of the Public Employees Retirement Association as the <br/>
<a id="pl.50.19"></a><var>50.19</var>successor of the Minneapolis Employees Retirement Fund as a result of the maximum <br/>
<a id="pl.50.20"></a><var>50.20</var>dollar amount limitation on state contributions to the fund that plan imposed under <br/>
<a id="pl.50.21"></a><var>50.21</var>section 
         <statute_ref>422A.101, subdivision 3</statute_ref>. The additional levy must not exceed the most recent <br/>
<a id="pl.50.22"></a><var>50.22</var>amount certified by the board of the Minneapolis Employees Retirement Fund executive <br/>
<a id="pl.50.23"></a><var>50.23</var>director of the Public Employees Retirement Association as the district's share of the <br/>
<a id="pl.50.24"></a><var>50.24</var>contribution requirement in excess of the maximum state contribution under section <br/>
<statute_ref><a id="pl.50.25"></a><var>50.25</var>422A.101, subdivision 3
         </statute_ref>.  <br/>
<a id="pl.50.26"></a><var>50.26</var>(b) For taxes payable in 1994 and thereafter, Special School District No. 1, <br/>
<a id="pl.50.27"></a><var>50.27</var>Minneapolis, and Independent School District No. 625, St. Paul, may levy for the increase <br/>
<a id="pl.50.28"></a><var>50.28</var>in the employer retirement fund contributions, under Laws 1992, chapter 598, article 5, <br/>
<a id="pl.50.29"></a><var>50.29</var>section 1.<br/>
<a id="pl.50.30"></a><var>50.30</var>(c) If the employer retirement fund contributions under section 
         <statute_ref>354A.12, subdivision <br/>
<a id="pl.50.31"></a><var>50.31</var>2a
         </statute_ref>, are increased for fiscal year 1994 or later fiscal years, Special School District No. 1, <br/>
<a id="pl.50.32"></a><var>50.32</var>Minneapolis, and Independent School District No. 625, St. Paul, may levy in payable <br/>
<a id="pl.50.33"></a><var>50.33</var>1994 or later an amount equal to the amount derived by applying the net increase in <br/>
<a id="pl.50.34"></a><var>50.34</var>the employer retirement fund contribution rate of the respective teacher retirement fund <br/>
<a id="pl.50.35"></a><var>50.35</var>association between fiscal year 1993 and the fiscal year beginning in the year after the <br/>
<a id="pl.51.1"></a><var>51.1</var>levy is certified to the total covered payroll of the applicable teacher retirement fund <br/>
<a id="pl.51.2"></a><var>51.2</var>association. If an applicable school district levies under this paragraph, they may not <br/>
<a id="pl.51.3"></a><var>51.3</var>levy under paragraph (b).  <br/>
<a id="pl.51.4"></a><var>51.4</var>(d) In addition to the levy authorized under paragraph (c), Special School District <br/>
<a id="pl.51.5"></a><var>51.5</var>No. 1, Minneapolis, may also levy payable in 1997 or later an amount equal to the <br/>
<a id="pl.51.6"></a><var>51.6</var>contributions under section 
         <statute_ref>423A.02, subdivision 3</statute_ref>, and may also levy in payable 1994 <br/>
<a id="pl.51.7"></a><var>51.7</var>or later an amount equal to the state aid contribution under section 
         <statute_ref>354A.12, subdivision <br/>
<a id="pl.51.8"></a><var>51.8</var>3b
         </statute_ref>. Independent School District No. 625, St. Paul, may levy payable in 1997 or later an <br/>
<a id="pl.51.9"></a><var>51.9</var>amount equal to the supplemental contributions under section 
         <statute_ref>423A.02, subdivision 3</statute_ref>.  <br/>
<br/>
<a id="bill.2.10.0"></a><a id="pl.51.10"></a><var>51.10</var>    Sec. 10. Minnesota Statutes 2008, section 256D.21, is amended to read:<br/>
<a id="pl.51.11"></a><var>51.11</var><b>256D.21 CONTINUATION OF BENEFITS; FORMER MINNEAPOLIS </b><br/>
<a id="pl.51.12"></a><var>51.12</var><b>EMPLOYEES.</b><br/>
<a id="pl.51.13"></a><var>51.13</var>    Subdivision 1. <b>Continuation of benefits.</b> Each employee of the city of Minneapolis <br/>
<a id="pl.51.14"></a><var>51.14</var>who is transferred to and employed by the county under the provisions of section 
         <statute_ref>256D.20</statute_ref> <br/>
<a id="pl.51.15"></a><var>51.15</var>and who is a contributing member of a retirement system organized under the provisions <br/>
<a id="pl.51.16"></a><var>51.16</var>of Minnesota Statutes 2008, chapter 422A, shall continue to be is a member of that system <br/>
<a id="pl.51.17"></a><var>51.17</var>the MERF division of the Public Employees Retirement Association and is entitled to all <br/>
<a id="pl.51.18"></a><var>51.18</var>of the applicable benefits conferred thereby by and subject to all the restrictions of chapter <br/>
<a id="pl.51.19"></a><var>51.19</var>422A, unless the member applies to cancel membership within six months after January <br/>
<a id="pl.51.20"></a><var>51.20</var>1, 1974 section 353.50. <br/>
<a id="pl.51.21"></a><var>51.21</var>    Subd. 2. <b>City obligation.</b> The cost to the public of that portion of the retirement <br/>
<a id="pl.51.22"></a><var>51.22</var>allowances or other benefits accrued while any such employee was in the service of the <br/>
<a id="pl.51.23"></a><var>51.23</var>city of Minneapolis shall remain an obligation of the city and a tax shall be levied and <br/>
<a id="pl.51.24"></a><var>51.24</var>collected by it to discharge its obligation as provided by chapter 422A in section 353.50, <br/>
<a id="pl.51.25"></a><var>51.25</var>subdivision 7.<br/>
<a id="pl.51.26"></a><var>51.26</var>    Subd. 3. <b>County obligation.</b> The cost to the public of the retirement allowances <br/>
<a id="pl.51.27"></a><var>51.27</var>or other benefits accruing to employees so transferred to and employed by the county <br/>
<a id="pl.51.28"></a><var>51.28</var>shall be the obligation of and paid by the county at such time as the retirement board <br/>
<a id="pl.51.29"></a><var>51.29</var>shall fix and determine in accordance with chapter 422A in section 353.50, subdivision <br/>
<a id="pl.51.30"></a><var>51.30</var>7. The county shall pay to the municipal general employees retirement fund an amount <br/>
<a id="pl.51.31"></a><var>51.31</var>certified to the county auditor of the county by the retirement board as the cost of the <br/>
<a id="pl.51.32"></a><var>51.32</var>retirement allowances and other benefits accruing and owing to such county employees of <br/>
<a id="pl.51.33"></a><var>51.33</var>the Public Employees Retirement Association those amounts. The cost to the public of <br/>
<a id="pl.51.34"></a><var>51.34</var>the retirement allowances as herein provided shall coverage under this section must be <br/>
<a id="pl.51.35"></a><var>51.35</var>paid from the county revenue fund by the county auditor upon receipt of certification from <br/>
<a id="pl.52.1"></a><var>52.1</var>the retirement board as herein provided, and the county board is authorized to levy and <br/>
<a id="pl.52.2"></a><var>52.2</var>collect such taxes as may be necessary to pay such costs.<br/>
<br/>
<a id="bill.2.11.0"></a><a id="pl.52.3"></a><var>52.3</var>    Sec. 11. Minnesota Statutes 2009 Supplement, section 352.01, subdivision 2b, is <br/>
<a id="pl.52.4"></a><var>52.4</var>amended to read:<br/>
<a id="pl.52.5"></a><var>52.5</var>    Subd. 2b.  <b>Excluded employees.</b> "State employee" does not include: <br/>
<a id="pl.52.6"></a><var>52.6</var>    (1) students employed by the University of Minnesota, or the state colleges and <br/>
<a id="pl.52.7"></a><var>52.7</var>universities, unless approved for coverage by the Board of Regents of the University of <br/>
<a id="pl.52.8"></a><var>52.8</var>Minnesota or the Board of Trustees of the Minnesota State Colleges and Universities, <br/>
<a id="pl.52.9"></a><var>52.9</var>whichever is applicable; <br/>
<a id="pl.52.10"></a><var>52.10</var>    (2) employees who are eligible for membership in the state Teachers Retirement <br/>
<a id="pl.52.11"></a><var>52.11</var>Association, except employees of the Department of Education who have chosen or may <br/>
<a id="pl.52.12"></a><var>52.12</var>choose to be covered by the general state employees retirement plan of the Minnesota <br/>
<a id="pl.52.13"></a><var>52.13</var>State Retirement System instead of the Teachers Retirement Association; <br/>
<a id="pl.52.14"></a><var>52.14</var>    (3) employees of the University of Minnesota who are excluded from coverage by <br/>
<a id="pl.52.15"></a><var>52.15</var>action of the Board of Regents; <br/>
<a id="pl.52.16"></a><var>52.16</var>    (4) officers and enlisted personnel in the National Guard and the naval militia who <br/>
<a id="pl.52.17"></a><var>52.17</var>are assigned to permanent peacetime duty and who under federal law are or are required to <br/>
<a id="pl.52.18"></a><var>52.18</var>be members of a federal retirement system; <br/>
<a id="pl.52.19"></a><var>52.19</var>    (5) election officers; <br/>
<a id="pl.52.20"></a><var>52.20</var>    (6) persons who are engaged in public work for the state but who are employed <br/>
<a id="pl.52.21"></a><var>52.21</var>by contractors when the performance of the contract is authorized by the legislature or <br/>
<a id="pl.52.22"></a><var>52.22</var>other competent authority; <br/>
<a id="pl.52.23"></a><var>52.23</var>    (7) officers and employees of the senate, or of the house of representatives, or of a <br/>
<a id="pl.52.24"></a><var>52.24</var>legislative committee or commission who are temporarily employed; <br/>
<a id="pl.52.25"></a><var>52.25</var>    (8) receivers, jurors, notaries public, and court employees who are not in the judicial <br/>
<a id="pl.52.26"></a><var>52.26</var>branch as defined in section 
         <statute_ref>43A.02, subdivision 25</statute_ref>, except referees and adjusters <br/>
<a id="pl.52.27"></a><var>52.27</var>employed by the Department of Labor and Industry; <br/>
<a id="pl.52.28"></a><var>52.28</var>    (9) patient and inmate help in state charitable, penal, and correctional institutions <br/>
<a id="pl.52.29"></a><var>52.29</var>including the Minnesota Veterans Home; <br/>
<a id="pl.52.30"></a><var>52.30</var>    (10) persons who are employed for professional services where the service is <br/>
<a id="pl.52.31"></a><var>52.31</var>incidental to their regular professional duties and whose compensation is paid on a per <br/>
<a id="pl.52.32"></a><var>52.32</var>diem basis; <br/>
<a id="pl.52.33"></a><var>52.33</var>    (11) employees of the Sibley House Association; <br/>
<a id="pl.52.34"></a><var>52.34</var>    (12) the members of any state board or commission who serve the state intermittently <br/>
<a id="pl.52.35"></a><var>52.35</var>and are paid on a per diem basis; the secretary, secretary-treasurer, and treasurer of those <br/>
<a id="pl.53.1"></a><var>53.1</var>boards if their compensation is $5,000 or less per year, or, if they are legally prohibited <br/>
<a id="pl.53.2"></a><var>53.2</var>from serving more than three years; and the board of managers of the State Agricultural <br/>
<a id="pl.53.3"></a><var>53.3</var>Society and its treasurer unless the treasurer is also its full-time secretary; <br/>
<a id="pl.53.4"></a><var>53.4</var>    (13) state troopers and persons who are described in section 
         <statute_ref>352B.011, subdivision <br/>
<a id="pl.53.5"></a><var>53.5</var>10
         </statute_ref>, clauses (2) to (8); <br/>
<a id="pl.53.6"></a><var>53.6</var>    (14) temporary employees of the Minnesota State Fair who are employed on or <br/>
<a id="pl.53.7"></a><var>53.7</var>after July 1 for a period not to extend beyond October 15 of that year; and persons who <br/>
<a id="pl.53.8"></a><var>53.8</var>are employed at any time by the state fair administration for special events held on the <br/>
<a id="pl.53.9"></a><var>53.9</var>fairgrounds; <br/>
<a id="pl.53.10"></a><var>53.10</var>    (15) emergency employees who are in the classified service; except that if an <br/>
<a id="pl.53.11"></a><var>53.11</var>emergency employee, within the same pay period, becomes a provisional or probationary <br/>
<a id="pl.53.12"></a><var>53.12</var>employee on other than a temporary basis, the employee must be considered a "state <br/>
<a id="pl.53.13"></a><var>53.13</var>employee" retroactively to the beginning of the pay period; <br/>
<a id="pl.53.14"></a><var>53.14</var>    (16) temporary employees in the classified service, and temporary employees in the <br/>
<a id="pl.53.15"></a><var>53.15</var>unclassified service who are appointed for a definite period of not more than six months <br/>
<a id="pl.53.16"></a><var>53.16</var>and who are employed less than six months in any one-year period; <br/>
<a id="pl.53.17"></a><var>53.17</var>    (17) interns hired for six months or less and trainee employees, except those listed in <br/>
<a id="pl.53.18"></a><var>53.18</var>subdivision 2a, clause (8); <br/>
<a id="pl.53.19"></a><var>53.19</var>    (18) persons whose compensation is paid on a fee basis or as an independent <br/>
<a id="pl.53.20"></a><var>53.20</var>contractor; <br/>
<a id="pl.53.21"></a><var>53.21</var>    (19) state employees who are employed by the Board of Trustees of the Minnesota <br/>
<a id="pl.53.22"></a><var>53.22</var>State Colleges and Universities in unclassified positions enumerated in section 
         <statute_ref>43A.08, <br/>
<a id="pl.53.23"></a><var>53.23</var>subdivision 1
         </statute_ref>, clause (9); <br/>
<a id="pl.53.24"></a><var>53.24</var>    (20) state employees who in any year have credit for 12 months service as teachers <br/>
<a id="pl.53.25"></a><var>53.25</var>in the public schools of the state and as teachers are members of the Teachers Retirement <br/>
<a id="pl.53.26"></a><var>53.26</var>Association or a retirement system in St. Paul, Minneapolis, or Duluth, except for <br/>
<a id="pl.53.27"></a><var>53.27</var>incidental employment as a state employee that is not covered by one of the teacher <br/>
<a id="pl.53.28"></a><var>53.28</var>retirement associations or systems; <br/>
<a id="pl.53.29"></a><var>53.29</var>    (21) employees of the adjutant general who are employed on an unlimited <br/>
<a id="pl.53.30"></a><var>53.30</var>intermittent or temporary basis in the classified or unclassified service for the support of <br/>
<a id="pl.53.31"></a><var>53.31</var>Army and Air National Guard training facilities; <br/>
<a id="pl.53.32"></a><var>53.32</var>    (22) chaplains and nuns who are excluded from coverage under the federal Old <br/>
<a id="pl.53.33"></a><var>53.33</var>Age, Survivors, Disability, and Health Insurance Program for the performance of service <br/>
<a id="pl.53.34"></a><var>53.34</var>as specified in United States Code, title 42, section 410(a)(8)(A), as amended, if no <br/>
<a id="pl.53.35"></a><var>53.35</var>irrevocable election of coverage has been made under section 3121(r) of the Internal <br/>
<a id="pl.53.36"></a><var>53.36</var>Revenue Code of 1986, as amended through December 31, 1992; <br/>
<a id="pl.54.1"></a><var>54.1</var>    (23) examination monitors who are employed by departments, agencies, <br/>
<a id="pl.54.2"></a><var>54.2</var>commissions, and boards to conduct examinations required by law; <br/>
<a id="pl.54.3"></a><var>54.3</var>    (24) persons who are appointed to serve as members of fact-finding commissions or <br/>
<a id="pl.54.4"></a><var>54.4</var>adjustment panels, arbitrators, or labor referees under chapter 179; <br/>
<a id="pl.54.5"></a><var>54.5</var>    (25) temporary employees who are employed for limited periods under any state or <br/>
<a id="pl.54.6"></a><var>54.6</var>federal program for training or rehabilitation, including persons who are employed for <br/>
<a id="pl.54.7"></a><var>54.7</var>limited periods from areas of economic distress, but not including skilled and supervisory <br/>
<a id="pl.54.8"></a><var>54.8</var>personnel and persons having civil service status covered by the system; <br/>
<a id="pl.54.9"></a><var>54.9</var>    (26) full-time students who are employed by the Minnesota Historical Society <br/>
<a id="pl.54.10"></a><var>54.10</var>intermittently during part of the year and full-time during the summer months; <br/>
<a id="pl.54.11"></a><var>54.11</var>    (27) temporary employees who are appointed for not more than six months, of <br/>
<a id="pl.54.12"></a><var>54.12</var>the Metropolitan Council and of any of its statutory boards, if the board members are <br/>
<a id="pl.54.13"></a><var>54.13</var>appointed by the Metropolitan Council; <br/>
<a id="pl.54.14"></a><var>54.14</var>    (28) persons who are employed in positions designated by the Department of <br/>
<a id="pl.54.15"></a><var>54.15</var>Management and Budget as student workers; <br/>
<a id="pl.54.16"></a><var>54.16</var>    (29) members of trades who are employed by the successor to the Metropolitan <br/>
<a id="pl.54.17"></a><var>54.17</var>Waste Control Commission, who have trade union pension plan coverage under a <br/>
<a id="pl.54.18"></a><var>54.18</var>collective bargaining agreement, and who are first employed after June 1, 1977; <br/>
<a id="pl.54.19"></a><var>54.19</var>    (30) off-duty peace officers while employed by the Metropolitan Council; <br/>
<a id="pl.54.20"></a><var>54.20</var>    (31) persons who are employed as full-time police officers by the Metropolitan <br/>
<a id="pl.54.21"></a><var>54.21</var>Council and as police officers are members of the public employees police and fire fund; <br/>
<a id="pl.54.22"></a><var>54.22</var>    (32) persons who are employed as full-time firefighters by the Department of Military <br/>
<a id="pl.54.23"></a><var>54.23</var>Affairs and as firefighters are members of the public employees police and fire fund; <br/>
<a id="pl.54.24"></a><var>54.24</var>    (33) foreign citizens with a work permit of less than three years, or an H-1b/JV visa <br/>
<a id="pl.54.25"></a><var>54.25</var>valid for less than three years of employment, unless notice of extension is supplied which <br/>
<a id="pl.54.26"></a><var>54.26</var>allows them to work for three or more years as of the date the extension is granted, in <br/>
<a id="pl.54.27"></a><var>54.27</var>which case they are eligible for coverage from the date extended; and <br/>
<a id="pl.54.28"></a><var>54.28</var>    (34) persons who are employed by the Board of Trustees of the Minnesota State <br/>
<a id="pl.54.29"></a><var>54.29</var>Colleges and Universities and who elected to remain members of the Public Employees <br/>
<a id="pl.54.30"></a><var>54.30</var>Retirement Association or of the MERF division of the Public Employees Retirement <br/>
<a id="pl.54.31"></a><var>54.31</var>Association as the successor of the Minneapolis Employees Retirement Fund, whichever <br/>
<a id="pl.54.32"></a><var>54.32</var>applies, under Minnesota Statutes 1994, section 
         <statute_ref>136C.75</statute_ref>. <br/>
<br/>
<a id="bill.2.12.0"></a><a id="pl.54.33"></a><var>54.33</var>    Sec. 12. Minnesota Statutes 2008, section 353.03, subdivision 1, is amended to read:<br/>
<a id="pl.54.34"></a><var>54.34</var>    Subdivision 1. <b>Management; composition; election.</b> (a) The management of the <br/>
<a id="pl.54.35"></a><var>54.35</var>public general employees retirement fund is vested in an 11-member board of trustees <br/>
<a id="pl.55.1"></a><var>55.1</var>consisting of ten members and the state auditor. The state auditor may designate a deputy <br/>
<a id="pl.55.2"></a><var>55.2</var>auditor with expertise in pension matters as the auditor's representative on the board. The <br/>
<a id="pl.55.3"></a><var>55.3</var>governor shall appoint five trustees to four-year terms, one of whom shall be designated to <br/>
<a id="pl.55.4"></a><var>55.4</var>represent school boards, one to represent cities, one to represent counties, one who is a <br/>
<a id="pl.55.5"></a><var>55.5</var>retired annuitant, and one who is a public member knowledgeable in pension matters. The <br/>
<a id="pl.55.6"></a><var>55.6</var>membership of the association, including recipients of retirement annuities and disability <br/>
<a id="pl.55.7"></a><var>55.7</var>and survivor benefits, shall elect five trustees for terms of four years, one of whom must be <br/>
<a id="pl.55.8"></a><var>55.8</var>a member of the police and fire fund and one of whom must be a former member who met <br/>
<a id="pl.55.9"></a><var>55.9</var>the definition of public employee under section 
         <statute_ref>353.01, subdivisions 2 and 2a</statute_ref>, for at least <br/>
<a id="pl.55.10"></a><var>55.10</var>five years prior to terminating membership or a member who receives a disability benefit. <br/>
<a id="pl.55.11"></a><var>55.11</var>Terms expire on January 31 of the fourth year, and positions are vacant until newly elected <br/>
<a id="pl.55.12"></a><var>55.12</var>members are seated. Except as provided in this subdivision, trustees elected by the <br/>
<a id="pl.55.13"></a><var>55.13</var>membership of the association must be public employees and members of the association. <br/>
<a id="pl.55.14"></a><var>55.14</var>(b) For seven days beginning October 1 of each year preceding a year in which <br/>
<a id="pl.55.15"></a><var>55.15</var>an election is held, the association shall accept at its office filings in person or by mail <br/>
<a id="pl.55.16"></a><var>55.16</var>of candidates for the board of trustees. A candidate shall submit at the time of filing a <br/>
<a id="pl.55.17"></a><var>55.17</var>nominating petition signed by 25 or more members of the association. No name may <br/>
<a id="pl.55.18"></a><var>55.18</var>be withdrawn from nomination by the nominee after October 15. At the request of a <br/>
<a id="pl.55.19"></a><var>55.19</var>candidate for an elected position on the board of trustees, the board shall mail a statement <br/>
<a id="pl.55.20"></a><var>55.20</var>of up to 300 words prepared by the candidate to all persons eligible to vote in the election <br/>
<a id="pl.55.21"></a><var>55.21</var>of the candidate. The board may adopt policies, subject to review and approval by the <br/>
<a id="pl.55.22"></a><var>55.22</var>secretary of state under paragraph (e), to govern the form and length of these statements, <br/>
<a id="pl.55.23"></a><var>55.23</var>timing of mailings, and deadlines for submitting materials to be mailed. The secretary <br/>
<a id="pl.55.24"></a><var>55.24</var>of state shall resolve disputes between the board and a candidate concerning application <br/>
<a id="pl.55.25"></a><var>55.25</var>of these policies to a particular statement. <br/>
<a id="pl.55.26"></a><var>55.26</var>(c) By January 10 of each year in which elections are to be held, the board shall <br/>
<a id="pl.55.27"></a><var>55.27</var>distribute by mail to the members ballots listing the candidates. No member may vote for <br/>
<a id="pl.55.28"></a><var>55.28</var>more than one candidate for each board position to be filled. A ballot indicating a vote for <br/>
<a id="pl.55.29"></a><var>55.29</var>more than one person for any position is void. No special marking may be used on the <br/>
<a id="pl.55.30"></a><var>55.30</var>ballot to indicate incumbents. Ballots mailed to the association must be postmarked no <br/>
<a id="pl.55.31"></a><var>55.31</var>later than January 31. The ballot envelopes must be so designated and the ballots must be <br/>
<a id="pl.55.32"></a><var>55.32</var>counted in a manner that ensures that each vote is secret.<br/>
<a id="pl.55.33"></a><var>55.33</var>(d) A candidate who receives contributions or makes expenditures in excess of $100, <br/>
<a id="pl.55.34"></a><var>55.34</var>or has given implicit or explicit consent for any other person to receive contributions or <br/>
<a id="pl.55.35"></a><var>55.35</var>make expenditures in excess of $100 for the purpose of bringing about the candidate's <br/>
<a id="pl.55.36"></a><var>55.36</var>election, shall file a report with the campaign finance and public disclosure board <br/>
<a id="pl.56.1"></a><var>56.1</var>disclosing the source and amount of all contributions to the candidate's campaign. The <br/>
<a id="pl.56.2"></a><var>56.2</var>campaign finance and public disclosure board shall prescribe forms governing these <br/>
<a id="pl.56.3"></a><var>56.3</var>disclosures. Expenditures and contributions have the meaning defined in section 
         <statute_ref>10A.01</statute_ref>. <br/>
<a id="pl.56.4"></a><var>56.4</var>These terms do not include the mailing made by the association board on behalf of the <br/>
<a id="pl.56.5"></a><var>56.5</var>candidate. A candidate shall file a report within 30 days from the day that the results of <br/>
<a id="pl.56.6"></a><var>56.6</var>the election are announced. The Campaign Finance and Public Disclosure Board shall <br/>
<a id="pl.56.7"></a><var>56.7</var>maintain these reports and make them available for public inspection in the same manner <br/>
<a id="pl.56.8"></a><var>56.8</var>as the board maintains and makes available other reports filed with it. <br/>
<a id="pl.56.9"></a><var>56.9</var>(e) The secretary of state shall review and approve the procedures defined by the <br/>
<a id="pl.56.10"></a><var>56.10</var>board of trustees for conducting the elections specified in this subdivision, including <br/>
<a id="pl.56.11"></a><var>56.11</var>board policies adopted under paragraph (b). <br/>
<a id="pl.56.12"></a><var>56.12</var>(f) The board of trustees and the executive director shall undertake their activities <br/>
<a id="pl.56.13"></a><var>56.13</var>consistent with chapter 356A.<br/>
<br/>
<a id="bill.2.13.0"></a><a id="pl.56.14"></a><var>56.14</var>    Sec. 13. Minnesota Statutes 2008, section 353.71, subdivision 4, is amended to read:<br/>
<a id="pl.56.15"></a><var>56.15</var>    Subd. 4. <b>Repayment of refund.</b> Any person who has received a refund from the <br/>
<a id="pl.56.16"></a><var>56.16</var>public general employees retirement fund and who is a member of any public retirement <br/>
<a id="pl.56.17"></a><var>56.17</var>system referred to in subdivision 1, may repay such refund to the public general employees <br/>
<a id="pl.56.18"></a><var>56.18</var>retirement fund as provided in section 
         <statute_ref>353.35</statute_ref>. <br/>
<br/>
<a id="bill.2.14.0"></a><a id="pl.56.19"></a><var>56.19</var>    Sec. 14. Minnesota Statutes 2008, section 353.86, subdivision 1, is amended to read:<br/>
<a id="pl.56.20"></a><var>56.20</var>    Subdivision 1. <b>Participation.</b> Volunteer ambulance service personnel, as defined <br/>
<a id="pl.56.21"></a><var>56.21</var>in section 
         <statute_ref>353.01, subdivision 35</statute_ref>, who are or become members of and participants in <br/>
<a id="pl.56.22"></a><var>56.22</var>the public general employees retirement fund or the public employees police and fire <br/>
<a id="pl.56.23"></a><var>56.23</var>fund before July 1, 2002, and make contributions to either of those funds based on <br/>
<a id="pl.56.24"></a><var>56.24</var>compensation for service other than volunteer ambulance service may elect to participate <br/>
<a id="pl.56.25"></a><var>56.25</var>in that same fund with respect to compensation received for volunteer ambulance service, <br/>
<a id="pl.56.26"></a><var>56.26</var>provided that the volunteer ambulance service is not credited to another public or private <br/>
<a id="pl.56.27"></a><var>56.27</var>pension plan including the public employees retirement plan established by chapter <br/>
<a id="pl.56.28"></a><var>56.28</var>353D and provided further that the volunteer ambulance service is rendered for the same <br/>
<a id="pl.56.29"></a><var>56.29</var>governmental unit for which the nonvolunteer ambulance service is rendered.  <br/>
<br/>
<a id="bill.2.15.0"></a><a id="pl.56.30"></a><var>56.30</var>    Sec. 15. Minnesota Statutes 2008, section 353.86, subdivision 2, is amended to read:<br/>
<a id="pl.56.31"></a><var>56.31</var>    Subd. 2. <b>Election.</b> Volunteer ambulance service personnel to whom subdivision <br/>
<a id="pl.56.32"></a><var>56.32</var>1 applies may exercise the election authorized under subdivision 1 within the earlier of <br/>
<a id="pl.56.33"></a><var>56.33</var>the one-year period beginning on July 1, 1989, and extending through June 30, 1990, or <br/>
<a id="pl.57.1"></a><var>57.1</var>the one-year period commencing on the first day of the first month following the start of <br/>
<a id="pl.57.2"></a><var>57.2</var>employment in a position covered by the public general employees retirement fund or the <br/>
<a id="pl.57.3"></a><var>57.3</var>public employees police and fire fund. The election must be exercised by filing a written <br/>
<a id="pl.57.4"></a><var>57.4</var>notice on a form prescribed by the executive director of the association.<br/>
<br/>
<a id="bill.2.16.0"></a><a id="pl.57.5"></a><var>57.5</var>    Sec. 16. Minnesota Statutes 2008, section 353.87, subdivision 1, is amended to read:<br/>
<a id="pl.57.6"></a><var>57.6</var>    Subdivision 1. <b>Participation.</b> Except as provided in subdivision 2, a volunteer <br/>
<a id="pl.57.7"></a><var>57.7</var>firefighter, as defined in section 
         <statute_ref>353.01, subdivision 36</statute_ref>, who, on June 30, 1989, was <br/>
<a id="pl.57.8"></a><var>57.8</var>a member of, and a participant in, the public general employees retirement fund or the <br/>
<a id="pl.57.9"></a><var>57.9</var>public employees police and fire fund and was making contributions to either of those <br/>
<a id="pl.57.10"></a><var>57.10</var>funds based, at least in part, on compensation for services performed as a volunteer <br/>
<a id="pl.57.11"></a><var>57.11</var>firefighter shall continue as a member of, and a participant in, the public general <br/>
<a id="pl.57.12"></a><var>57.12</var>employees retirement fund or the public employees police and fire fund and compensation <br/>
<a id="pl.57.13"></a><var>57.13</var>for services performed as a volunteer firefighter shall be considered salary. <br/>
<br/>
<a id="bill.2.17.0"></a><a id="pl.57.14"></a><var>57.14</var>    Sec. 17. Minnesota Statutes 2008, section 353.87, subdivision 2, is amended to read:<br/>
<a id="pl.57.15"></a><var>57.15</var>    Subd. 2. <b>Option.</b> A volunteer firefighter to whom subdivision 1 applies has the <br/>
<a id="pl.57.16"></a><var>57.16</var>option to terminate membership and future participation in the public general employees <br/>
<a id="pl.57.17"></a><var>57.17</var>retirement fund or the public employees police and fire fund upon filing of a written notice <br/>
<a id="pl.57.18"></a><var>57.18</var>of intention to terminate participation. Notice must be given on a form prescribed by the <br/>
<a id="pl.57.19"></a><var>57.19</var>executive director of the association and must be filed in the offices of the association not <br/>
<a id="pl.57.20"></a><var>57.20</var>later than June 30, 1990.<br/>
<br/>
<a id="bill.2.18.0"></a><a id="pl.57.21"></a><var>57.21</var>    Sec. 18. Minnesota Statutes 2008, section 353.88, is amended to read:<br/>
<a id="pl.57.22"></a><var>57.22</var><b>353.88 PENALTY FOR MEMBERSHIP MISCERTIFICATIONS AND </b><br/>
<a id="pl.57.23"></a><var>57.23</var><b>CERTIFICATION FAILURES.</b><br/>
<a id="pl.57.24"></a><var>57.24</var>(a) If the board of trustees of the Public Employees Retirement Association, <br/>
<a id="pl.57.25"></a><var>57.25</var>upon the recommendation of the executive director, determines that a governmental <br/>
<a id="pl.57.26"></a><var>57.26</var>subdivision has certified a public employee for membership in the public employees <br/>
<a id="pl.57.27"></a><var>57.27</var>police and fire retirement plan when the public employee was not eligible for that <br/>
<a id="pl.57.28"></a><var>57.28</var>retirement plan coverage, the public employee must be covered by the correct retirement <br/>
<a id="pl.57.29"></a><var>57.29</var>plan for subsequent service, the public employee retains the coverage for the period of <br/>
<a id="pl.57.30"></a><var>57.30</var>the misclassification, and the governmental subdivision shall pay in a lump sum the <br/>
<a id="pl.57.31"></a><var>57.31</var>difference in the actuarial present value of the retirement annuities to which the public <br/>
<a id="pl.57.32"></a><var>57.32</var>employee would have been entitled if the public employee was properly classified. The <br/>
<a id="pl.57.33"></a><var>57.33</var>governmental subdivision payment is payable within 30 days of the board's determination. <br/>
<a id="pl.58.1"></a><var>58.1</var>If unpaid, it must be collected under section 
         <statute_ref>353.28</statute_ref>. The lump-sum payment must be <br/>
<a id="pl.58.2"></a><var>58.2</var>deposited in the public general employees retirement fund. <br/>
<a id="pl.58.3"></a><var>58.3</var>(b) If the executive director of the Public Employees Retirement Association <br/>
<a id="pl.58.4"></a><var>58.4</var>determines that a governmental subdivision has failed to certify a person for retirement <br/>
<a id="pl.58.5"></a><var>58.5</var>plan membership and coverage under this chapter, in addition to the procedures under <br/>
<a id="pl.58.6"></a><var>58.6</var>section 
         <statute_ref>353.27, subdivision 4</statute_ref>, 9, 10, 11, 12, 12a, or 12b, the director shall charge a fine of <br/>
<a id="pl.58.7"></a><var>58.7</var>$25 for each membership certification failure. <br/>
<br/>
<a id="bill.2.19.0"></a><a id="pl.58.8"></a><var>58.8</var>    Sec. 19. Minnesota Statutes 2008, section 354.71, is amended to read:<br/>
<a id="pl.58.9"></a><var>58.9</var><b>354.71 MINNEAPOLIS EMPLOYEES RETIREMENT FUND STATE AID </b><br/>
<a id="pl.58.10"></a><var>58.10</var><b>REDEDICATED.</b><br/>
<a id="pl.58.11"></a><var>58.11</var>    Subdivision 1. <b>Appropriation.</b> The positive difference, if any, between the <br/>
<a id="pl.58.12"></a><var>58.12</var>actual state aid paid payable to the MERF division account of the Public Employees <br/>
<a id="pl.58.13"></a><var>58.13</var>Retirement Association with respect to the former Minneapolis Employees Retirement <br/>
<a id="pl.58.14"></a><var>58.14</var>Fund under section 
         <statute_ref>422A.101</statute_ref>, subdivision 3, and $8,065,000 annually is appropriated <br/>
<a id="pl.58.15"></a><var>58.15</var>from the general fund to the commissioner of management and budget for deposit in <br/>
<a id="pl.58.16"></a><var>58.16</var>the Teachers Retirement Association to offset all or a portion of the current and future <br/>
<a id="pl.58.17"></a><var>58.17</var>unfunded actuarial accrued liability of the former Minneapolis Teachers Retirement <br/>
<a id="pl.58.18"></a><var>58.18</var>Fund Association.<br/>
<a id="pl.58.19"></a><var>58.19</var>    Subd. 2. <b>Financial requirements.</b> The appropriation in subdivision 1 is available to <br/>
<a id="pl.58.20"></a><var>58.20</var>the extent that financial requirements of with respect to the MERF division of the Public <br/>
<a id="pl.58.21"></a><var>58.21</var>Employees Retirement Association as the successor of the former Minneapolis Employees <br/>
<a id="pl.58.22"></a><var>58.22</var>Retirement Fund under section 
         <statute_ref>422A.101</statute_ref>, subdivision 3, 353.50 have been satisfied.<br/>
<br/>
<a id="bill.2.20.0"></a><a id="pl.58.23"></a><var>58.23</var>    Sec. 20. Minnesota Statutes 2008, section 354A.011, subdivision 27, is amended to <br/>
<a id="pl.58.24"></a><var>58.24</var>read:<br/>
<a id="pl.58.25"></a><var>58.25</var>    Subd. 27. <b>Teacher.</b> (a) "Teacher" means any person who renders service for a public <br/>
<a id="pl.58.26"></a><var>58.26</var>school district, other than a charter school, located in the corporate limits of Duluth or <br/>
<a id="pl.58.27"></a><var>58.27</var>St. Paul, as any of the following:<br/>
<a id="pl.58.28"></a><var>58.28</var>(1) a full-time employee in a position for which a valid license from the state <br/>
<a id="pl.58.29"></a><var>58.29</var>Department of Education is required;<br/>
<a id="pl.58.30"></a><var>58.30</var>(2) an employee of the teachers retirement fund association located in the city of <br/>
<a id="pl.58.31"></a><var>58.31</var>the first class unless the employee has exercised the option pursuant to Laws 1955, <br/>
<a id="pl.58.32"></a><var>58.32</var>chapter 10, section 1, to retain membership in the Minneapolis Employees Retirement <br/>
<a id="pl.58.33"></a><var>58.33</var>Fund established pursuant to chapter 422A;<br/>
<a id="pl.59.1"></a><var>59.1</var>(3) a part-time employee in a position for which a valid license from the state <br/>
<a id="pl.59.2"></a><var>59.2</var>Department of Education is required; or<br/>
<a id="pl.59.3"></a><var>59.3</var>(4) a part-time employee in a position for which a valid license from the state <br/>
<a id="pl.59.4"></a><var>59.4</var>Department of Education is required who also renders other nonteaching services for the <br/>
<a id="pl.59.5"></a><var>59.5</var>school district, unless the board of trustees of the teachers retirement fund association <br/>
<a id="pl.59.6"></a><var>59.6</var>determines that the combined employment is on the whole so substantially dissimilar to <br/>
<a id="pl.59.7"></a><var>59.7</var>teaching service that the service may not be covered by the association.<br/>
<a id="pl.59.8"></a><var>59.8</var>(b) The term does not mean any person who renders service in the school district <br/>
<a id="pl.59.9"></a><var>59.9</var>as any of the following:<br/>
<a id="pl.59.10"></a><var>59.10</var>(1) an independent contractor or the employee of an independent contractor;<br/>
<a id="pl.59.11"></a><var>59.11</var>(2) an employee who is a full-time teacher covered by the Teachers Retirement <br/>
<a id="pl.59.12"></a><var>59.12</var>Association or by another teachers retirement fund association established pursuant to this <br/>
<a id="pl.59.13"></a><var>59.13</var>chapter or chapter 354;<br/>
<a id="pl.59.14"></a><var>59.14</var>(3) an employee exempt from licensure pursuant to section 
         <statute_ref>122A.30</statute_ref>; <br/>
<a id="pl.59.15"></a><var>59.15</var>(4) an employee who is a teacher in a technical college located in a city of the first <br/>
<a id="pl.59.16"></a><var>59.16</var>class unless the person elects coverage by the applicable first class city teacher retirement <br/>
<a id="pl.59.17"></a><var>59.17</var>fund association under section 
         <statute_ref>354B.21, subdivision 2</statute_ref>; <br/>
<a id="pl.59.18"></a><var>59.18</var>(5) a teacher employed by a charter school, irrespective of the location of the <br/>
<a id="pl.59.19"></a><var>59.19</var>school; or<br/>
<a id="pl.59.20"></a><var>59.20</var>(6) an employee who is a part-time teacher in a technical college in a city of the first <br/>
<a id="pl.59.21"></a><var>59.21</var>class and who has elected coverage by the applicable first class city teacher retirement <br/>
<a id="pl.59.22"></a><var>59.22</var>fund association under section 
         <statute_ref>354B.21, subdivision 2</statute_ref>, but (i) the teaching service is <br/>
<a id="pl.59.23"></a><var>59.23</var>incidental to the regular nonteaching occupation of the person; (ii) the applicable technical <br/>
<a id="pl.59.24"></a><var>59.24</var>college stipulates annually in advance that the part-time teaching service will not exceed <br/>
<a id="pl.59.25"></a><var>59.25</var>300 hours in a fiscal year; and (iii) the part-time teaching actually does not exceed 300 <br/>
<a id="pl.59.26"></a><var>59.26</var>hours in the fiscal year to which the certification applies. <br/>
<br/>
<a id="bill.2.21.0"></a><a id="pl.59.27"></a><var>59.27</var>    Sec. 21. Minnesota Statutes 2008, section 354A.39, is amended to read:<br/>
<a id="pl.59.28"></a><var>59.28</var><b>354A.39 SERVICE IN OTHER PUBLIC RETIREMENT FUNDS; ANNUITY.</b><br/>
<a id="pl.59.29"></a><var>59.29</var>Any person who has been a member of the Minnesota State Retirement System, the <br/>
<a id="pl.59.30"></a><var>59.30</var>Public Employees Retirement Association including the Public Employees Retirement <br/>
<a id="pl.59.31"></a><var>59.31</var>Association Police and Fire Fund, the Teachers Retirement Association, the Minnesota <br/>
<a id="pl.59.32"></a><var>59.32</var>State Patrol Retirement Association, the legislators retirement plan, the constitutional <br/>
<a id="pl.59.33"></a><var>59.33</var>officers retirement plan, the Minneapolis Employees Retirement Fund, the Duluth <br/>
<a id="pl.59.34"></a><var>59.34</var>Teachers Retirement Fund Association new law coordinated program, the St. Paul <br/>
<a id="pl.59.35"></a><var>59.35</var>Teachers Retirement Fund Association coordinated program, or any other public employee <br/>
<a id="pl.60.1"></a><var>60.1</var>retirement system in the state of Minnesota having a like provision but excluding all other <br/>
<a id="pl.60.2"></a><var>60.2</var>funds providing retirement benefits for police officers or firefighters shall be entitled <br/>
<a id="pl.60.3"></a><var>60.3</var>when qualified to an annuity from each fund if the person's total allowable service in all <br/>
<a id="pl.60.4"></a><var>60.4</var>of the funds or in any two or more of the funds totals three or more years, provided that <br/>
<a id="pl.60.5"></a><var>60.5</var>no portion of the allowable service upon which the retirement annuity from one fund is <br/>
<a id="pl.60.6"></a><var>60.6</var>based is used again in the computation for a retirement annuity from another fund and <br/>
<a id="pl.60.7"></a><var>60.7</var>provided further that the person has not taken a refund from any of funds or associations <br/>
<a id="pl.60.8"></a><var>60.8</var>since the person's membership in the fund or association has terminated. The annuity <br/>
<a id="pl.60.9"></a><var>60.9</var>from each fund or association shall be determined by the appropriate provisions of the <br/>
<a id="pl.60.10"></a><var>60.10</var>law governing each fund or association, except that the requirement that a person must <br/>
<a id="pl.60.11"></a><var>60.11</var>have at least three years of allowable service in the respective fund or association shall not <br/>
<a id="pl.60.12"></a><var>60.12</var>apply for the purposes of this section, provided that the aggregate service in two or more <br/>
<a id="pl.60.13"></a><var>60.13</var>of these funds equals three or more years.<br/>
<br/>
<a id="bill.2.22.0"></a><a id="pl.60.14"></a><var>60.14</var>    Sec. 22. Minnesota Statutes 2008, section 355.095, subdivision 1, is amended to read:<br/>
<a id="pl.60.15"></a><var>60.15</var>    Subdivision 1. <b>Agreement.</b> (a) The director, on behalf of the state, its political <br/>
<a id="pl.60.16"></a><var>60.16</var>subdivisions, and its other governmental employers, is authorized to enter into an <br/>
<a id="pl.60.17"></a><var>60.17</var>agreement with the Secretary of Health and Human Services to extend the provisions of <br/>
<a id="pl.60.18"></a><var>60.18</var>United States Code, title 42, section 426, 426-1, and 1395c, to the employees in paragraph <br/>
<a id="pl.60.19"></a><var>60.19</var>(b) who meet the requirements of United States Code, title 42, section 418(v)(2) and who <br/>
<a id="pl.60.20"></a><var>60.20</var>do not have coverage by the federal old age, survivors, and disability insurance program <br/>
<a id="pl.60.21"></a><var>60.21</var>for that employment under any previous modification of the agreement or previous <br/>
<a id="pl.60.22"></a><var>60.22</var>Medicare referendum.<br/>
<a id="pl.60.23"></a><var>60.23</var>(b) The applicable employees are:<br/>
<a id="pl.60.24"></a><var>60.24</var>(1) employees who are members of one of the retirement plans in Minnesota Statutes <br/>
<a id="pl.60.25"></a><var>60.25</var>2008, section 
         <statute_ref>356.30</statute_ref>, subdivision 3, except clauses (4) and (8), based on continuous <br/>
<a id="pl.60.26"></a><var>60.26</var>employment since March 31, 1986; and<br/>
<a id="pl.60.27"></a><var>60.27</var>(2) employees of a special authority or district who have been continuously <br/>
<a id="pl.60.28"></a><var>60.28</var>employed by the special authority or district since March 31, 1986.<br/>
<br/>
<a id="bill.2.23.0"></a><a id="pl.60.29"></a><var>60.29</var>    Sec. 23. Minnesota Statutes 2009 Supplement, section 356.20, subdivision 2, is <br/>
<a id="pl.60.30"></a><var>60.30</var>amended to read:<br/>
<a id="pl.60.31"></a><var>60.31</var>    Subd. 2. <b>Covered public pension plans and funds.</b> This section applies to the <br/>
<a id="pl.60.32"></a><var>60.32</var>following public pension plans:<br/>
<a id="pl.60.33"></a><var>60.33</var>    (1) the general state employees retirement plan of the Minnesota State Retirement <br/>
<a id="pl.60.34"></a><var>60.34</var>System;<br/>
<a id="pl.61.1"></a><var>61.1</var>    (2) the general employees retirement plan of the Public Employees Retirement <br/>
<a id="pl.61.2"></a><var>61.2</var>Association;<br/>
<a id="pl.61.3"></a><var>61.3</var>    (3) the Teachers Retirement Association;<br/>
<a id="pl.61.4"></a><var>61.4</var>    (4) the State Patrol retirement plan;<br/>
<a id="pl.61.5"></a><var>61.5</var>    (5) the St. Paul Teachers Retirement Fund Association;<br/>
<a id="pl.61.6"></a><var>61.6</var>    (6) the Duluth Teachers Retirement Fund Association;<br/>
<a id="pl.61.7"></a><var>61.7</var>    (7) the Minneapolis Employees Retirement Fund;<br/>
<a id="pl.61.8"></a><var>61.8</var>    (8) (7) the University of Minnesota faculty retirement plan;<br/>
<a id="pl.61.9"></a><var>61.9</var>    (9) (8) the University of Minnesota faculty supplemental retirement plan;<br/>
<a id="pl.61.10"></a><var>61.10</var>    (10) (9) the judges retirement fund;<br/>
<a id="pl.61.11"></a><var>61.11</var>    (11) (10) a police or firefighter's relief association specified or described in section <br/>
<statute_ref><a id="pl.61.12"></a><var>61.12</var>69.77, subdivision 1a
         </statute_ref>;<br/>
<a id="pl.61.13"></a><var>61.13</var>    (12) (11) a volunteer firefighter relief association governed by section 
         <statute_ref>69.771, <br/>
<a id="pl.61.14"></a><var>61.14</var>subdivision 1
         </statute_ref>; <br/>
<a id="pl.61.15"></a><var>61.15</var>    (13) (12) the public employees police and fire plan of the Public Employees <br/>
<a id="pl.61.16"></a><var>61.16</var>Retirement Association;<br/>
<a id="pl.61.17"></a><var>61.17</var>    (14) (13) the correctional state employees retirement plan of the Minnesota State <br/>
<a id="pl.61.18"></a><var>61.18</var>Retirement System; <br/>
<a id="pl.61.19"></a><var>61.19</var>    (15) (14) the local government correctional service retirement plan of the Public <br/>
<a id="pl.61.20"></a><var>61.20</var>Employees Retirement Association; and<br/>
<a id="pl.61.21"></a><var>61.21</var>(16) (15) the voluntary statewide lump-sum volunteer firefighter retirement plan.<br/>
<br/>
<a id="bill.2.24.0"></a><a id="pl.61.22"></a><var>61.22</var>    Sec. 24. Minnesota Statutes 2008, section 356.214, subdivision 1, is amended to read:<br/>
<a id="pl.61.23"></a><var>61.23</var>    Subdivision 1. <b>Actuary retention.</b> (a) The governing board or managing or <br/>
<a id="pl.61.24"></a><var>61.24</var>administrative official of each public pension plan and retirement fund or plan enumerated <br/>
<a id="pl.61.25"></a><var>61.25</var>in paragraph (b) shall contract with an established actuarial consulting firm to conduct <br/>
<a id="pl.61.26"></a><var>61.26</var>annual actuarial valuations and related services. The principal from the actuarial <br/>
<a id="pl.61.27"></a><var>61.27</var>consulting firm on the contract must be an approved actuary under section 
         <statute_ref>356.215, <br/>
<a id="pl.61.28"></a><var>61.28</var>subdivision 1
         </statute_ref>, paragraph (c). <br/>
<a id="pl.61.29"></a><var>61.29</var>    (b) Actuarial services must include the preparation of actuarial valuations and <br/>
<a id="pl.61.30"></a><var>61.30</var>related actuarial work for the following retirement plans:<br/>
<a id="pl.61.31"></a><var>61.31</var>    (1) the teachers retirement plan, Teachers Retirement Association;<br/>
<a id="pl.61.32"></a><var>61.32</var>    (2) the general state employees retirement plan, Minnesota State Retirement System;<br/>
<a id="pl.61.33"></a><var>61.33</var>    (3) the correctional employees retirement plan, Minnesota State Retirement System;<br/>
<a id="pl.61.34"></a><var>61.34</var>    (4) the State Patrol retirement plan, Minnesota State Retirement System;<br/>
<a id="pl.61.35"></a><var>61.35</var>    (5) the judges retirement plan, Minnesota State Retirement System;<br/>
<a id="pl.62.1"></a><var>62.1</var>    (6) the Minneapolis employees retirement plan, Minneapolis Employees Retirement <br/>
<a id="pl.62.2"></a><var>62.2</var>Fund;<br/>
<a id="pl.62.3"></a><var>62.3</var>    (7) (6) the public general employees retirement plan, Public Employees Retirement <br/>
<a id="pl.62.4"></a><var>62.4</var>Association, including the MERF division;<br/>
<a id="pl.62.5"></a><var>62.5</var>    (8) (7) the public employees police and fire plan, Public Employees Retirement <br/>
<a id="pl.62.6"></a><var>62.6</var>Association;<br/>
<a id="pl.62.7"></a><var>62.7</var>    (9) (8) the Duluth teachers retirement plan, Duluth Teachers Retirement Fund <br/>
<a id="pl.62.8"></a><var>62.8</var>Association;<br/>
<a id="pl.62.9"></a><var>62.9</var>    (10) (9) the St. Paul teachers retirement plan, St. Paul Teachers Retirement Fund <br/>
<a id="pl.62.10"></a><var>62.10</var>Association;<br/>
<a id="pl.62.11"></a><var>62.11</var>    (11) (10) the legislators retirement plan, Minnesota State Retirement System;<br/>
<a id="pl.62.12"></a><var>62.12</var>    (12) (11) the elective state officers retirement plan, Minnesota State Retirement <br/>
<a id="pl.62.13"></a><var>62.13</var>System; and<br/>
<a id="pl.62.14"></a><var>62.14</var>    (13) (12) local government correctional service retirement plan, Public Employees <br/>
<a id="pl.62.15"></a><var>62.15</var>Retirement Association.<br/>
<a id="pl.62.16"></a><var>62.16</var>    (c) The contracts must require completion of the annual actuarial valuation <br/>
<a id="pl.62.17"></a><var>62.17</var>calculations on a fiscal year basis, with the contents of the actuarial valuation calculations <br/>
<a id="pl.62.18"></a><var>62.18</var>as specified in section 
         <statute_ref>356.215</statute_ref>, and in conformity with the standards for actuarial work <br/>
<a id="pl.62.19"></a><var>62.19</var>adopted by the Legislative Commission on Pensions and Retirement. <br/>
<a id="pl.62.20"></a><var>62.20</var>    The contracts must require completion of annual experience data collection and <br/>
<a id="pl.62.21"></a><var>62.21</var>processing and a quadrennial published experience study for the plans listed in paragraph <br/>
<a id="pl.62.22"></a><var>62.22</var>(b), clauses (1), (2), and (7) (6), as provided for in the standards for actuarial work <br/>
<a id="pl.62.23"></a><var>62.23</var>adopted by the commission. The experience data collection, processing, and analysis <br/>
<a id="pl.62.24"></a><var>62.24</var>must evaluate the following:<br/>
<a id="pl.62.25"></a><var>62.25</var>    (1) individual salary progression;<br/>
<a id="pl.62.26"></a><var>62.26</var>    (2) the rate of return on investments based on the current asset value;<br/>
<a id="pl.62.27"></a><var>62.27</var>    (3) payroll growth;<br/>
<a id="pl.62.28"></a><var>62.28</var>    (4) mortality;<br/>
<a id="pl.62.29"></a><var>62.29</var>    (5) retirement age;<br/>
<a id="pl.62.30"></a><var>62.30</var>    (6) withdrawal; and<br/>
<a id="pl.62.31"></a><var>62.31</var>    (7) disablement.<br/>
<a id="pl.62.32"></a><var>62.32</var>    (d) The actuary shall annually prepare a report to the governing or managing board <br/>
<a id="pl.62.33"></a><var>62.33</var>or administrative official and the legislature, summarizing the results of the actuarial <br/>
<a id="pl.62.34"></a><var>62.34</var>valuation calculations. The actuary shall include with the report any recommendations <br/>
<a id="pl.62.35"></a><var>62.35</var>concerning the appropriateness of the support rates to achieve proper funding of <br/>
<a id="pl.62.36"></a><var>62.36</var>the retirement plans by the required funding dates. The actuary shall, as part of the <br/>
<a id="pl.63.1"></a><var>63.1</var>quadrennial experience study, include recommendations on the appropriateness of the <br/>
<a id="pl.63.2"></a><var>63.2</var>actuarial valuation assumptions required for evaluation in the study.<br/>
<a id="pl.63.3"></a><var>63.3</var>    (e) If the actuarial gain and loss analysis in the actuarial valuation calculations <br/>
<a id="pl.63.4"></a><var>63.4</var>indicates a persistent pattern of sizable gains or losses, the governing or managing board <br/>
<a id="pl.63.5"></a><var>63.5</var>or administrative official shall direct the actuary to prepare a special experience study for a <br/>
<a id="pl.63.6"></a><var>63.6</var>plan listed in paragraph (b), clause (3), (4), (5), (6) (7), (8), (9), (10), (11), or (12), or (13), <br/>
<a id="pl.63.7"></a><var>63.7</var>in the manner provided for in the standards for actuarial work adopted by the commission.<br/>
<br/>
<a id="bill.2.25.0"></a><a id="pl.63.8"></a><var>63.8</var>    Sec. 25. Minnesota Statutes 2008, section 356.30, subdivision 3, is amended to read:<br/>
<a id="pl.63.9"></a><var>63.9</var>    Subd. 3. <b>Covered plans.</b> This section applies to the following retirement plans:<br/>
<a id="pl.63.10"></a><var>63.10</var>(1) the general state employees retirement plan of the Minnesota State Retirement <br/>
<a id="pl.63.11"></a><var>63.11</var>System, established under chapter 352;<br/>
<a id="pl.63.12"></a><var>63.12</var>(2) the correctional state employees retirement plan of the Minnesota State <br/>
<a id="pl.63.13"></a><var>63.13</var>Retirement System, established under chapter 352;<br/>
<a id="pl.63.14"></a><var>63.14</var>(3) the unclassified employees retirement program, established under chapter 352D;<br/>
<a id="pl.63.15"></a><var>63.15</var>(4) the State Patrol retirement plan, established under chapter 352B;<br/>
<a id="pl.63.16"></a><var>63.16</var>(5) the legislators retirement plan, established under chapter 3A;<br/>
<a id="pl.63.17"></a><var>63.17</var>(6) the elective state officers retirement plan, established under chapter 352C;<br/>
<a id="pl.63.18"></a><var>63.18</var>(7) the general employees retirement plan of the Public Employees Retirement <br/>
<a id="pl.63.19"></a><var>63.19</var>Association, established under chapter 353, including the MERF division of the Public <br/>
<a id="pl.63.20"></a><var>63.20</var>Employees Retirement Association;<br/>
<a id="pl.63.21"></a><var>63.21</var>(8) the public employees police and fire retirement plan of the Public Employees <br/>
<a id="pl.63.22"></a><var>63.22</var>Retirement Association, established under chapter 353;<br/>
<a id="pl.63.23"></a><var>63.23</var>(9) the local government correctional service retirement plan of the Public <br/>
<a id="pl.63.24"></a><var>63.24</var>Employees Retirement Association, established under chapter 353E;<br/>
<a id="pl.63.25"></a><var>63.25</var>(10) the Teachers Retirement Association, established under chapter 354;<br/>
<a id="pl.63.26"></a><var>63.26</var>(11) the Minneapolis Employees Retirement Fund, established under chapter 422A;<br/>
<a id="pl.63.27"></a><var>63.27</var>(12) (11) the St. Paul Teachers Retirement Fund Association, established under <br/>
<a id="pl.63.28"></a><var>63.28</var>chapter 354A;<br/>
<a id="pl.63.29"></a><var>63.29</var>(13) (12) the Duluth Teachers Retirement Fund Association, established under <br/>
<a id="pl.63.30"></a><var>63.30</var>chapter 354A; and<br/>
<a id="pl.63.31"></a><var>63.31</var>(14) (13) the judges retirement fund, established by chapter 490. <br/>
<br/>
<a id="bill.2.26.0"></a><a id="pl.63.32"></a><var>63.32</var>    Sec. 26. Minnesota Statutes 2008, section 356.302, subdivision 1, is amended to read:<br/>
<a id="pl.63.33"></a><var>63.33</var>    Subdivision 1. <b>Definitions.</b> (a) The terms used in this section are defined in this <br/>
<a id="pl.63.34"></a><var>63.34</var>subdivision.<br/>
<a id="pl.64.1"></a><var>64.1</var>(b) "Average salary" means the highest average of covered salary for the appropriate <br/>
<a id="pl.64.2"></a><var>64.2</var>period of credited service that is required for the calculation of a disability benefit by <br/>
<a id="pl.64.3"></a><var>64.3</var>the covered retirement plan and that is drawn from any period of credited service and <br/>
<a id="pl.64.4"></a><var>64.4</var>successive years of covered salary in a covered retirement plan.<br/>
<a id="pl.64.5"></a><var>64.5</var>(c) "Covered retirement plan" or "plan" means a retirement plan listed in subdivision <br/>
<a id="pl.64.6"></a><var>64.6</var>7.<br/>
<a id="pl.64.7"></a><var>64.7</var>(d) "Duty-related" means a disabling illness or injury that occurred while the person <br/>
<a id="pl.64.8"></a><var>64.8</var>was actively engaged in employment duties or that arose out of the person's active <br/>
<a id="pl.64.9"></a><var>64.9</var>employment duties.<br/>
<a id="pl.64.10"></a><var>64.10</var>(e) "General employee retirement plan" means a covered retirement plan listed in <br/>
<a id="pl.64.11"></a><var>64.11</var>subdivision 7, clauses (1) to (8) (6) and (13) (12).<br/>
<a id="pl.64.12"></a><var>64.12</var>(f) "Occupationally disabled" means the condition of having a medically <br/>
<a id="pl.64.13"></a><var>64.13</var>determinable physical or mental impairment that makes a person unable to satisfactorily <br/>
<a id="pl.64.14"></a><var>64.14</var>perform the minimum requirements of the person's employment position or a substantially <br/>
<a id="pl.64.15"></a><var>64.15</var>similar employment position.<br/>
<a id="pl.64.16"></a><var>64.16</var>(g) "Public safety employee retirement plan" means a covered retirement plan listed <br/>
<a id="pl.64.17"></a><var>64.17</var>in subdivision 7, clauses (9) (7)  to (12) (11).<br/>
<a id="pl.64.18"></a><var>64.18</var>(h) "Totally and permanently disabled" means the condition of having a medically <br/>
<a id="pl.64.19"></a><var>64.19</var>determinable physical or mental impairment that makes a person unable to engage in any <br/>
<a id="pl.64.20"></a><var>64.20</var>substantial gainful activity and that is expected to continue or has continued for a period <br/>
<a id="pl.64.21"></a><var>64.21</var>of at least one year or that is expected to result directly in the person's death.<br/>
<br/>
<a id="bill.2.27.0"></a><a id="pl.64.22"></a><var>64.22</var>    Sec. 27. Minnesota Statutes 2008, section 356.302, subdivision 7, is amended to read:<br/>
<a id="pl.64.23"></a><var>64.23</var>    Subd. 7. <b>Covered retirement plans.</b> This section applies to the following <br/>
<a id="pl.64.24"></a><var>64.24</var>retirement plans:<br/>
<a id="pl.64.25"></a><var>64.25</var>(1) the general state employees retirement plan of the Minnesota State Retirement <br/>
<a id="pl.64.26"></a><var>64.26</var>System, established by chapter 352;<br/>
<a id="pl.64.27"></a><var>64.27</var>(2) the unclassified state employees retirement program of the Minnesota State <br/>
<a id="pl.64.28"></a><var>64.28</var>Retirement System, established by chapter 352D;<br/>
<a id="pl.64.29"></a><var>64.29</var>(3) the general employees retirement plan of the Public Employees Retirement <br/>
<a id="pl.64.30"></a><var>64.30</var>Association, established by chapter 353, including the MERF division of the Public <br/>
<a id="pl.64.31"></a><var>64.31</var>Employees Retirement Association;<br/>
<a id="pl.64.32"></a><var>64.32</var>(4) the Teachers Retirement Association, established by chapter 354;<br/>
<a id="pl.64.33"></a><var>64.33</var>(5) the Duluth Teachers Retirement Fund Association, established by chapter 354A;<br/>
<a id="pl.64.34"></a><var>64.34</var>(6) the St. Paul Teachers Retirement Fund Association, established by chapter 354A;<br/>
<a id="pl.64.35"></a><var>64.35</var>(7) the Minneapolis Employees Retirement Fund, established by chapter 422A;<br/>
<a id="pl.65.1"></a><var>65.1</var>(8) (7) the state correctional employees retirement plan of the Minnesota State <br/>
<a id="pl.65.2"></a><var>65.2</var>Retirement System, established by chapter 352;<br/>
<a id="pl.65.3"></a><var>65.3</var>(9) (8) the State Patrol retirement plan, established by chapter 352B;<br/>
<a id="pl.65.4"></a><var>65.4</var>(10) (9) the public employees police and fire plan of the Public Employees <br/>
<a id="pl.65.5"></a><var>65.5</var>Retirement Association, established by chapter 353;<br/>
<a id="pl.65.6"></a><var>65.6</var>(11) (10) the local government correctional service retirement plan of the Public <br/>
<a id="pl.65.7"></a><var>65.7</var>Employees Retirement Association, established by chapter 353E; and<br/>
<a id="pl.65.8"></a><var>65.8</var>(12) (11) the judges retirement plan, established by chapter 490. <br/>
<br/>
<a id="bill.2.28.0"></a><a id="pl.65.9"></a><var>65.9</var>    Sec. 28. Minnesota Statutes 2008, section 356.303, subdivision 4, is amended to read:<br/>
<a id="pl.65.10"></a><var>65.10</var>    Subd. 4. <b>Covered retirement plans.</b> This section applies to the following <br/>
<a id="pl.65.11"></a><var>65.11</var>retirement plans:<br/>
<a id="pl.65.12"></a><var>65.12</var>(1) the legislators retirement plan, established by chapter 3A;<br/>
<a id="pl.65.13"></a><var>65.13</var>(2) the general state employees retirement plan of the Minnesota State Retirement <br/>
<a id="pl.65.14"></a><var>65.14</var>System, established by chapter 352;<br/>
<a id="pl.65.15"></a><var>65.15</var>(3) the correctional state employees retirement plan of the Minnesota State <br/>
<a id="pl.65.16"></a><var>65.16</var>Retirement System, established by chapter 352;<br/>
<a id="pl.65.17"></a><var>65.17</var>(4) the State Patrol retirement plan, established by chapter 352B;<br/>
<a id="pl.65.18"></a><var>65.18</var>(5) the elective state officers retirement plan, established by chapter 352C;<br/>
<a id="pl.65.19"></a><var>65.19</var>(6) the unclassified state employees retirement program, established by chapter <br/>
<a id="pl.65.20"></a><var>65.20</var>352D;<br/>
<a id="pl.65.21"></a><var>65.21</var>(7) the general employees retirement plan of the Public Employees Retirement <br/>
<a id="pl.65.22"></a><var>65.22</var>Association, established by chapter 353, including the MERF division of the Public <br/>
<a id="pl.65.23"></a><var>65.23</var>Employees Retirement Association;<br/>
<a id="pl.65.24"></a><var>65.24</var>(8) the public employees police and fire plan of the Public Employees Retirement <br/>
<a id="pl.65.25"></a><var>65.25</var>Association, established by chapter 353;<br/>
<a id="pl.65.26"></a><var>65.26</var>(9) the local government correctional service retirement plan of the Public <br/>
<a id="pl.65.27"></a><var>65.27</var>Employees Retirement Association, established by chapter 353E;<br/>
<a id="pl.65.28"></a><var>65.28</var>(10) the Teachers Retirement Association, established by chapter 354;<br/>
<a id="pl.65.29"></a><var>65.29</var>(11) the Duluth Teachers Retirement Fund Association, established by chapter 354A;<br/>
<a id="pl.65.30"></a><var>65.30</var>(12) the St. Paul Teachers Retirement Fund Association, established by chapter <br/>
<a id="pl.65.31"></a><var>65.31</var>354A; and<br/>
<a id="pl.65.32"></a><var>65.32</var>(13) the Minneapolis Employees Retirement Fund, established by chapter 422A; and<br/>
<a id="pl.65.33"></a><var>65.33</var>(14) (13) the judges retirement fund, established by chapter 490. <br/>
<br/>
<a id="bill.2.29.0"></a><a id="pl.66.1"></a><var>66.1</var>    Sec. 29. Minnesota Statutes 2009 Supplement, section 356.32, subdivision 2, is <br/>
<a id="pl.66.2"></a><var>66.2</var>amended to read:<br/>
<a id="pl.66.3"></a><var>66.3</var>    Subd. 2. <b>Covered retirement plans.</b> The provisions of this section apply to the <br/>
<a id="pl.66.4"></a><var>66.4</var>following retirement plans:<br/>
<a id="pl.66.5"></a><var>66.5</var>(1) the general state employees retirement plan of the Minnesota State Retirement <br/>
<a id="pl.66.6"></a><var>66.6</var>System, established under chapter 352;<br/>
<a id="pl.66.7"></a><var>66.7</var>(2) the correctional state employees retirement plan of the Minnesota State <br/>
<a id="pl.66.8"></a><var>66.8</var>Retirement System, established under chapter 352;<br/>
<a id="pl.66.9"></a><var>66.9</var>(3) the State Patrol retirement plan, established under chapter 352B;<br/>
<a id="pl.66.10"></a><var>66.10</var>(4) the general employees retirement plan of the Public Employees Retirement <br/>
<a id="pl.66.11"></a><var>66.11</var>Association, established under chapter 353, including the MERF division of the Public <br/>
<a id="pl.66.12"></a><var>66.12</var>Employees Retirement Association;<br/>
<a id="pl.66.13"></a><var>66.13</var>(5) the public employees police and fire plan of the Public Employees Retirement <br/>
<a id="pl.66.14"></a><var>66.14</var>Association, established under chapter 353;<br/>
<a id="pl.66.15"></a><var>66.15</var>(6) the Teachers Retirement Association, established under chapter 354;<br/>
<a id="pl.66.16"></a><var>66.16</var>(7) the Minneapolis Employees Retirement Fund, established under chapter 422A;<br/>
<a id="pl.66.17"></a><var>66.17</var>(8) (7) the Duluth Teachers Retirement Fund Association, established under chapter <br/>
<a id="pl.66.18"></a><var>66.18</var>354A; and<br/>
<a id="pl.66.19"></a><var>66.19</var>(9) (8) the St. Paul Teachers Retirement Fund Association, established under chapter <br/>
<a id="pl.66.20"></a><var>66.20</var>354A.<br/>
<br/>
<a id="bill.2.30.0"></a><a id="pl.66.21"></a><var>66.21</var>    Sec. 30. Minnesota Statutes 2009 Supplement, section 356.401, subdivision 3, is <br/>
<a id="pl.66.22"></a><var>66.22</var>amended to read:<br/>
<a id="pl.66.23"></a><var>66.23</var>    Subd. 3. <b>Covered retirement plans.</b> The provisions of this section apply to the <br/>
<a id="pl.66.24"></a><var>66.24</var>following retirement plans:<br/>
<a id="pl.66.25"></a><var>66.25</var>(1) the legislators retirement plan, established by chapter 3A;<br/>
<a id="pl.66.26"></a><var>66.26</var>(2) the general state employees retirement plan of the Minnesota State Retirement <br/>
<a id="pl.66.27"></a><var>66.27</var>System, established by chapter 352;<br/>
<a id="pl.66.28"></a><var>66.28</var>(3) the correctional state employees retirement plan of the Minnesota State <br/>
<a id="pl.66.29"></a><var>66.29</var>Retirement System, established by chapter 352;<br/>
<a id="pl.66.30"></a><var>66.30</var>(4) the State Patrol retirement plan, established by chapter 352B;<br/>
<a id="pl.66.31"></a><var>66.31</var>(5) the elective state officers retirement plan, established by chapter 352C;<br/>
<a id="pl.66.32"></a><var>66.32</var>(6) the unclassified state employees retirement program, established by chapter <br/>
<a id="pl.66.33"></a><var>66.33</var>352D;<br/>
<a id="pl.67.1"></a><var>67.1</var>(7) the general employees retirement plan of the Public Employees Retirement <br/>
<a id="pl.67.2"></a><var>67.2</var>Association, established by chapter 353, including the MERF division of the Public <br/>
<a id="pl.67.3"></a><var>67.3</var>Employees Retirement Association;<br/>
<a id="pl.67.4"></a><var>67.4</var>(8) the public employees police and fire plan of the Public Employees Retirement <br/>
<a id="pl.67.5"></a><var>67.5</var>Association, established by chapter 353;<br/>
<a id="pl.67.6"></a><var>67.6</var>(9) the public employees defined contribution plan, established by chapter 353D;<br/>
<a id="pl.67.7"></a><var>67.7</var>(10) the local government correctional service retirement plan of the Public <br/>
<a id="pl.67.8"></a><var>67.8</var>Employees Retirement Association, established by chapter 353E;<br/>
<a id="pl.67.9"></a><var>67.9</var>(11) the voluntary statewide lump-sum volunteer firefighter retirement plan, <br/>
<a id="pl.67.10"></a><var>67.10</var>established by chapter 353G;<br/>
<a id="pl.67.11"></a><var>67.11</var>(12) the Teachers Retirement Association, established by chapter 354;<br/>
<a id="pl.67.12"></a><var>67.12</var>(13) the Duluth Teachers Retirement Fund Association, established by chapter 354A;<br/>
<a id="pl.67.13"></a><var>67.13</var>(14) the St. Paul Teachers Retirement Fund Association, established by chapter <br/>
<a id="pl.67.14"></a><var>67.14</var>354A;<br/>
<a id="pl.67.15"></a><var>67.15</var>(15) the individual retirement account plan, established by chapter 354B;<br/>
<a id="pl.67.16"></a><var>67.16</var>(16) the higher education supplemental retirement plan, established by chapter 354C;<br/>
<a id="pl.67.17"></a><var>67.17</var>(17) the Minneapolis Employees Retirement Fund, established by chapter 422A;<br/>
<a id="pl.67.18"></a><var>67.18</var>(18) (17) the Minneapolis Police Relief Association, established by chapter 423B;<br/>
<a id="pl.67.19"></a><var>67.19</var>(19) (18) the Minneapolis Firefighters Relief Association, established by chapter <br/>
<a id="pl.67.20"></a><var>67.20</var>423C; and<br/>
<a id="pl.67.21"></a><var>67.21</var>(20) (19) the judges retirement fund, established by chapter 490.<br/>
<br/>
<a id="bill.2.31.0"></a><a id="pl.67.22"></a><var>67.22</var>    Sec. 31. Minnesota Statutes 2008, section 356.407, subdivision 2, is amended to read:<br/>
<a id="pl.67.23"></a><var>67.23</var>    Subd. 2. <b>Covered funds.</b> The provisions of this section apply to the following <br/>
<a id="pl.67.24"></a><var>67.24</var>retirement funds:<br/>
<a id="pl.67.25"></a><var>67.25</var>(1) the general employees retirement plan of the Public Employees Retirement <br/>
<a id="pl.67.26"></a><var>67.26</var>Association established under chapter 353, including the MERF division of the Public <br/>
<a id="pl.67.27"></a><var>67.27</var>Employees Retirement Association;<br/>
<a id="pl.67.28"></a><var>67.28</var>(2) the public employees police and fire plan of the Public Employees Retirement <br/>
<a id="pl.67.29"></a><var>67.29</var>Association established under chapter 353;<br/>
<a id="pl.67.30"></a><var>67.30</var>(3) the State Patrol retirement plan established under chapter 352B;<br/>
<a id="pl.67.31"></a><var>67.31</var>(4) the legislators retirement plan established under chapter 3A;<br/>
<a id="pl.67.32"></a><var>67.32</var>(5) the elective state officers retirement plan established under chapter 352C; and<br/>
<a id="pl.67.33"></a><var>67.33</var>(6) the Teachers Retirement Association established under chapter 354; and.<br/>
<a id="pl.67.34"></a><var>67.34</var>(7) the Minneapolis Employees Retirement Fund established under chapter 422A.<br/>
<br/>
<a id="bill.2.32.0"></a><a id="pl.68.1"></a><var>68.1</var>    Sec. 32. Minnesota Statutes 2009 Supplement, section 356.415, subdivision 2, is <br/>
<a id="pl.68.2"></a><var>68.2</var>amended to read:<br/>
<a id="pl.68.3"></a><var>68.3</var>    Subd. 2. <b>Covered retirement plans.</b> The provisions of this section apply to the <br/>
<a id="pl.68.4"></a><var>68.4</var>following retirement plans:<br/>
<a id="pl.68.5"></a><var>68.5</var>(1) the legislators retirement plan established under chapter 3A;<br/>
<a id="pl.68.6"></a><var>68.6</var>(2) the correctional state employees retirement plan of the Minnesota State <br/>
<a id="pl.68.7"></a><var>68.7</var>Retirement System established under chapter 352;<br/>
<a id="pl.68.8"></a><var>68.8</var>(3) the general state employees retirement plan of the Minnesota State Retirement <br/>
<a id="pl.68.9"></a><var>68.9</var>System established under chapter 352;<br/>
<a id="pl.68.10"></a><var>68.10</var>(4) the State Patrol retirement plan established under chapter 352B;<br/>
<a id="pl.68.11"></a><var>68.11</var>(5) the elective state officers retirement plan established under chapter 352C;<br/>
<a id="pl.68.12"></a><var>68.12</var>(6) the general employees retirement plan of the Public Employees Retirement <br/>
<a id="pl.68.13"></a><var>68.13</var>Association established under chapter 353, including the MERF division of the Public <br/>
<a id="pl.68.14"></a><var>68.14</var>Employees Retirement Association;<br/>
<a id="pl.68.15"></a><var>68.15</var>(7) the public employees police and fire retirement plan of the Public Employees <br/>
<a id="pl.68.16"></a><var>68.16</var>Retirement Association established under chapter 353;<br/>
<a id="pl.68.17"></a><var>68.17</var>(8) the local government correctional employees retirement plan of the Public <br/>
<a id="pl.68.18"></a><var>68.18</var>Employees Retirement Association established under chapter 353E;<br/>
<a id="pl.68.19"></a><var>68.19</var>(9) the teachers retirement plan established under chapter 354; and<br/>
<a id="pl.68.20"></a><var>68.20</var>(10) the judges retirement plan established under chapter 490.<br/>
<br/>
<a id="bill.2.33.0"></a><a id="pl.68.21"></a><var>68.21</var>    Sec. 33. Minnesota Statutes 2008, section 356.431, subdivision 1, is amended to read:<br/>
<a id="pl.68.22"></a><var>68.22</var>    Subdivision 1. <b>Lump-sum postretirement payment conversion.</b> For benefits paid <br/>
<a id="pl.68.23"></a><var>68.23</var>after December 31, 2001, to eligible persons under sections
<statute_ref>section 356.42</statute_ref> and 
<statute_ref>356.43</statute_ref>, <br/>
<a id="pl.68.24"></a><var>68.24</var>the amount of the most recent lump-sum benefit payable to an eligible recipient under <br/>
<a id="pl.68.25"></a><var>68.25</var>sections section 
<statute_ref>356.42</statute_ref> and 
<statute_ref>356.43</statute_ref> must be divided by 12. The result must be added to <br/>
<a id="pl.68.26"></a><var>68.26</var>the monthly annuity or benefit otherwise payable to an eligible recipient, must become a <br/>
<a id="pl.68.27"></a><var>68.27</var>permanent part of the benefit recipient's pension, and must be included in any pension <br/>
<a id="pl.68.28"></a><var>68.28</var>benefit subject to future increases.<br/>
<br/>
<a id="bill.2.34.0"></a><a id="pl.68.29"></a><var>68.29</var>    Sec. 34. Minnesota Statutes 2008, section 356.465, subdivision 3, is amended to read:<br/>
<a id="pl.68.30"></a><var>68.30</var>    Subd. 3. <b>Covered retirement plans.</b> The provisions of this section apply to the <br/>
<a id="pl.68.31"></a><var>68.31</var>following retirement plans:<br/>
<a id="pl.68.32"></a><var>68.32</var>(1) the general state employees retirement plan of the Minnesota State Retirement <br/>
<a id="pl.68.33"></a><var>68.33</var>System established under chapter 352;<br/>
<a id="pl.69.1"></a><var>69.1</var>(2) the correctional state employees retirement plan of the Minnesota State <br/>
<a id="pl.69.2"></a><var>69.2</var>Retirement System established under chapter 352;<br/>
<a id="pl.69.3"></a><var>69.3</var>(3) the State Patrol retirement plan established under chapter 352B;<br/>
<a id="pl.69.4"></a><var>69.4</var>(4) the legislators retirement plan established under chapter 3A;<br/>
<a id="pl.69.5"></a><var>69.5</var>(5) the judges retirement plan established under chapter 490;<br/>
<a id="pl.69.6"></a><var>69.6</var>(6) the general employees retirement plan of the Public Employees Retirement <br/>
<a id="pl.69.7"></a><var>69.7</var>Association established under chapter 353, including the MERF division of the Public <br/>
<a id="pl.69.8"></a><var>69.8</var>Employees Retirement Association;<br/>
<a id="pl.69.9"></a><var>69.9</var>(7) the public employees police and fire plan of the Public Employees Retirement <br/>
<a id="pl.69.10"></a><var>69.10</var>Association established under chapter 353;<br/>
<a id="pl.69.11"></a><var>69.11</var>(8) the teachers retirement plan established under chapter 354;<br/>
<a id="pl.69.12"></a><var>69.12</var>(9) the Duluth Teachers Retirement Fund Association established under chapter <br/>
<a id="pl.69.13"></a><var>69.13</var>354A;<br/>
<a id="pl.69.14"></a><var>69.14</var>(10) the St. Paul Teachers Retirement Fund Association established under chapter <br/>
<a id="pl.69.15"></a><var>69.15</var>354A;<br/>
<a id="pl.69.16"></a><var>69.16</var>(11) the Minneapolis Employees Retirement Fund established under chapter 422A;<br/>
<a id="pl.69.17"></a><var>69.17</var>(12) (11) the Minneapolis Firefighters Relief Association established under chapter <br/>
<a id="pl.69.18"></a><var>69.18</var>423C;<br/>
<a id="pl.69.19"></a><var>69.19</var>(13) (12) the Minneapolis Police Relief Association established under chapter <br/>
<a id="pl.69.20"></a><var>69.20</var>423B; and<br/>
<a id="pl.69.21"></a><var>69.21</var>(14) (13) the local government correctional service retirement plan of the Public <br/>
<a id="pl.69.22"></a><var>69.22</var>Employees Retirement Association established under chapter 353E.<br/>
<br/>
<a id="bill.2.35.0"></a><a id="pl.69.23"></a><var>69.23</var>    Sec. 35. Minnesota Statutes 2008, section 356.64, is amended to read:<br/>
<a id="pl.69.24"></a><var>69.24</var><b>356.64 REAL ESTATE INVESTMENTS.</b><br/>
<a id="pl.69.25"></a><var>69.25</var>(a) Notwithstanding any law to the contrary, any public pension plan whose assets <br/>
<a id="pl.69.26"></a><var>69.26</var>are not invested by the State Board of Investment may invest its funds in Minnesota situs <br/>
<a id="pl.69.27"></a><var>69.27</var>nonfarm real estate ownership interests or loans secured by mortgages or deeds of trust if <br/>
<a id="pl.69.28"></a><var>69.28</var>the investment is consistent with section 
         <statute_ref>356A.04</statute_ref>.  <br/>
<a id="pl.69.29"></a><var>69.29</var>(b) Except to the extent authorized in the case of the Minneapolis Employees <br/>
<a id="pl.69.30"></a><var>69.30</var>Retirement Fund under section 
<statute_ref>422A.05, subdivision 2c</statute_ref>, paragraph (a), An investment <br/>
<a id="pl.69.31"></a><var>69.31</var>otherwise authorized by this section must also comply with the requirements and <br/>
<a id="pl.69.32"></a><var>69.32</var>limitations of section 
         <statute_ref>11A.24, subdivision 6</statute_ref>.  <br/>
<br/>
<a id="bill.2.36.0"></a><a id="pl.69.33"></a><var>69.33</var>    Sec. 36. Minnesota Statutes 2008, section 356.65, subdivision 2, is amended to read:<br/>
<a id="pl.70.1"></a><var>70.1</var>    Subd. 2.  <b>Disposition of abandoned amounts.</b> Any unclaimed public pension <br/>
<a id="pl.70.2"></a><var>70.2</var>fund amounts existing in any public pension fund are presumed to be abandoned, but are <br/>
<a id="pl.70.3"></a><var>70.3</var>not subject to the provisions of sections 
         <statute_ref>345.31</statute_ref> to 
         <statute_ref>345.60</statute_ref>. Unless the benefit plan of <br/>
<a id="pl.70.4"></a><var>70.4</var>the public pension fund specifically provides for a different disposition of unclaimed or <br/>
<a id="pl.70.5"></a><var>70.5</var>abandoned funds or amounts, any unclaimed public pension fund amounts cancel and <br/>
<a id="pl.70.6"></a><var>70.6</var>must be credited to the public pension fund. If the unclaimed public pension fund amount <br/>
<a id="pl.70.7"></a><var>70.7</var>exceeds $25 and the inactive or former member again becomes a member of the applicable <br/>
<a id="pl.70.8"></a><var>70.8</var>public pension plan or applies for a retirement annuity under section 
         <statute_ref>3A.12</statute_ref>, 
         <statute_ref>352.72</statute_ref>, <br/>
<statute_ref><a id="pl.70.9"></a><var>70.9</var>352B.30
         </statute_ref>, 
         <statute_ref>353.71</statute_ref>, 
         <statute_ref>354.60</statute_ref>, 
         <statute_ref>or 356.30</statute_ref>, or 
<statute_ref>422A.16, subdivision 8</statute_ref>, whichever applies, the <br/>
<a id="pl.70.10"></a><var>70.10</var>canceled amount must be restored to the credit of the person. <br/>
<br/>
<a id="bill.2.37.0"></a><a id="pl.70.11"></a><var>70.11</var>    Sec. 37. Minnesota Statutes 2008, section 356.91, is amended to read:<br/>
<a id="pl.70.12"></a><var>70.12</var><b>356.91 VOLUNTARY MEMBERSHIP DUES DEDUCTION.</b><br/>
<a id="pl.70.13"></a><var>70.13</var>    (a) Upon written authorization of a person receiving an annuity from a public <br/>
<a id="pl.70.14"></a><var>70.14</var>pension fund administered by the Minnesota State Retirement System, or the Public <br/>
<a id="pl.70.15"></a><var>70.15</var>Employees Retirement Association, or the Minneapolis Employees Retirement Fund, the <br/>
<a id="pl.70.16"></a><var>70.16</var>executive director of the public pension fund may deduct from the retirement annuity an <br/>
<a id="pl.70.17"></a><var>70.17</var>amount requested by the annuitant to be paid as dues to any labor organization that is an <br/>
<a id="pl.70.18"></a><var>70.18</var>exclusive bargaining agent representing public employees or an organization representing <br/>
<a id="pl.70.19"></a><var>70.19</var>retired public employees of which the annuitant is a member and shall pay the amount to <br/>
<a id="pl.70.20"></a><var>70.20</var>the organization so designated by the annuitant.<br/>
<a id="pl.70.21"></a><var>70.21</var>    (b) A pension fund and the plan fiduciaries which authorize or administer deductions <br/>
<a id="pl.70.22"></a><var>70.22</var>of dues payments under paragraph (a) are not liable for failure to properly deduct or <br/>
<a id="pl.70.23"></a><var>70.23</var>transmit the dues amounts, provided that the fund and the fiduciaries have acted in good <br/>
<a id="pl.70.24"></a><var>70.24</var>faith.<br/>
<a id="pl.70.25"></a><var>70.25</var>    (c) The deductions under paragraph (a) may occur no more frequently than two <br/>
<a id="pl.70.26"></a><var>70.26</var>times per year and may not be used for political purposes.<br/>
<a id="pl.70.27"></a><var>70.27</var>    (d) Any labor organization specified in paragraph (a) shall reimburse the public <br/>
<a id="pl.70.28"></a><var>70.28</var>pension fund for the administrative expense of withholding premium amounts.<br/>
<br/>
<a id="bill.2.38.0"></a><a id="pl.70.29"></a><var>70.29</var>    Sec. 38. Minnesota Statutes 2009 Supplement, section 356.96, subdivision 1, is <br/>
<a id="pl.70.30"></a><var>70.30</var>amended to read:<br/>
<a id="pl.70.31"></a><var>70.31</var>    Subdivision 1. <b>Definitions.</b> (a) Unless the language or context clearly indicates that <br/>
<a id="pl.70.32"></a><var>70.32</var>a different meaning is intended, for the purpose of this section, the terms in paragraphs <br/>
<a id="pl.70.33"></a><var>70.33</var>(b) to (e) have the meanings given them.<br/>
<a id="pl.71.1"></a><var>71.1</var>    (b) "Chief administrative officer" means the executive director of a covered pension <br/>
<a id="pl.71.2"></a><var>71.2</var>plan or the executive director's designee or representative.<br/>
<a id="pl.71.3"></a><var>71.3</var>    (c) "Covered pension plan" means a plan enumerated in section 
         <statute_ref>356.20, subdivision <br/>
</statute_ref><a id="pl.71.4"></a><var>71.4</var>2, clauses (1) to (4), (10) (9), and (13) (12) to (16) (15), but does not mean the <br/>
<a id="pl.71.5"></a><var>71.5</var>deferred compensation plan administered under sections 
         <statute_ref>352.965</statute_ref> and 
         <statute_ref>352.97</statute_ref> or to the <br/>
<a id="pl.71.6"></a><var>71.6</var>postretirement health care savings plan administered under section 
         <statute_ref>352.98</statute_ref>.<br/>
<a id="pl.71.7"></a><var>71.7</var>    (d) "Governing board" means the Board of Trustees of the Public Employees <br/>
<a id="pl.71.8"></a><var>71.8</var>Retirement Association, the Board of Trustees of the Teachers Retirement Association, or <br/>
<a id="pl.71.9"></a><var>71.9</var>the Board of Directors of the Minnesota State Retirement System.<br/>
<a id="pl.71.10"></a><var>71.10</var>    (e) "Person" includes an active, retired, deferred, or nonvested inactive participant in <br/>
<a id="pl.71.11"></a><var>71.11</var>a covered pension plan or a beneficiary of a participant, or an individual who has applied <br/>
<a id="pl.71.12"></a><var>71.12</var>to be a participant or who is or may be a survivor of a participant, or a state agency or <br/>
<a id="pl.71.13"></a><var>71.13</var>other governmental unit that employs active participants in a covered pension plan.<br/>
<br/>
<a id="bill.2.39.0"></a><a id="pl.71.14"></a><var>71.14</var>    Sec. 39. Minnesota Statutes 2008, section 473.511, subdivision 3, is amended to read:<br/>
<a id="pl.71.15"></a><var>71.15</var>    Subd. 3. <b>Existing sanitary districts, joint sewer boards.</b> Effective January 1, <br/>
<a id="pl.71.16"></a><var>71.16</var>1971, the corporate existence of the Minneapolis-St. Paul Sanitary District, the North <br/>
<a id="pl.71.17"></a><var>71.17</var>Suburban Sanitary Sewer District, and any joint board created by agreement among local <br/>
<a id="pl.71.18"></a><var>71.18</var>government units pursuant to section 
         <statute_ref>471.59</statute_ref>, to provide interceptors and treatment works <br/>
<a id="pl.71.19"></a><var>71.19</var>for such local government units, shall terminate. All persons regularly employed by <br/>
<a id="pl.71.20"></a><var>71.20</var>such sanitary districts and joint boards on that date or on any earlier date on which the <br/>
<a id="pl.71.21"></a><var>71.21</var>former waste control commission pursuant to subdivisions 1 and 2 assumed ownership <br/>
<a id="pl.71.22"></a><var>71.22</var>and control of any interceptors or treatment works owned or operated by such sanitary <br/>
<a id="pl.71.23"></a><var>71.23</var>districts and joint boards, and who are employees of the commission on July 1, 1994, shall <br/>
<a id="pl.71.24"></a><var>71.24</var>be employees of the council, and may at their option become members of the Minnesota <br/>
<a id="pl.71.25"></a><var>71.25</var>State Retirement System or may continue as members of a public retirement association <br/>
<a id="pl.71.26"></a><var>71.26</var>under chapter 422A or any other law, to which they belonged before such date, and shall <br/>
<a id="pl.71.27"></a><var>71.27</var>retain all pension rights which they may have under such latter laws, and all other rights <br/>
<a id="pl.71.28"></a><var>71.28</var>to which they are entitled by contract or law. Members of trades who are employed by <br/>
<a id="pl.71.29"></a><var>71.29</var>the former Metropolitan Waste Control Commission, who have trade union pension <br/>
<a id="pl.71.30"></a><var>71.30</var>coverage pursuant to a collective bargaining agreement, and who elected exclusion from <br/>
<a id="pl.71.31"></a><var>71.31</var>coverage pursuant to section 
         <statute_ref>473.512</statute_ref>, or who are first employed after July 1, 1977, shall <br/>
<a id="pl.71.32"></a><var>71.32</var>not be covered by the Minnesota State Retirement System. The council shall make the <br/>
<a id="pl.71.33"></a><var>71.33</var>employer's contributions to pension funds of its employees. Such employees shall perform <br/>
<a id="pl.71.34"></a><var>71.34</var>such duties as may be prescribed by the council. All funds of such sanitary districts and <br/>
<a id="pl.71.35"></a><var>71.35</var>joint boards then on hand, and all subsequent collections of taxes, special assessments or <br/>
<a id="pl.72.1"></a><var>72.1</var>service charges levied or imposed by or for such sanitary districts or joint boards shall <br/>
<a id="pl.72.2"></a><var>72.2</var>be transferred to the council. The local government units otherwise entitled to such <br/>
<a id="pl.72.3"></a><var>72.3</var>cash, taxes, assessments or service charges shall be credited with such amounts, and <br/>
<a id="pl.72.4"></a><var>72.4</var>such credits shall be offset against any amounts to be paid by them to the council as <br/>
<a id="pl.72.5"></a><var>72.5</var>provided in section 
         <statute_ref>473.517</statute_ref>. The former Metropolitan Waste Control Commission, and <br/>
<a id="pl.72.6"></a><var>72.6</var>on July 1, 1994, the council shall succeed to and become vested by action of law with <br/>
<a id="pl.72.7"></a><var>72.7</var>all right, title and interest in and to any property, real or personal, owned or operated <br/>
<a id="pl.72.8"></a><var>72.8</var>by such sanitary districts and joint boards. Prior to that date the proper officers of such <br/>
<a id="pl.72.9"></a><var>72.9</var>sanitary districts and joint boards, or the former Metropolitan Waste Control Commission, <br/>
<a id="pl.72.10"></a><var>72.10</var>shall execute and deliver to the council all deeds, conveyances, bills of sale, and other <br/>
<a id="pl.72.11"></a><var>72.11</var>documents or instruments required to vest in the council good and marketable title to all <br/>
<a id="pl.72.12"></a><var>72.12</var>such real or personal property; provided that vesting of the title shall occur by operation <br/>
<a id="pl.72.13"></a><var>72.13</var>of law and failure to execute and deliver the documents shall not affect the vesting of <br/>
<a id="pl.72.14"></a><var>72.14</var>title in the former Metropolitan Waste Control Commission or the council on the dates <br/>
<a id="pl.72.15"></a><var>72.15</var>indicated in this subdivision. The council shall become obligated to pay or assume all <br/>
<a id="pl.72.16"></a><var>72.16</var>bonded or other debt and contract obligations incurred by the former Metropolitan Waste <br/>
<a id="pl.72.17"></a><var>72.17</var>Control Commission, or by such sanitary districts and joint boards, or incurred by local <br/>
<a id="pl.72.18"></a><var>72.18</var>government units for the acquisition or betterment of any interceptors or treatment works <br/>
<a id="pl.72.19"></a><var>72.19</var>owned or operated by such sanitary districts or joint boards.  <br/>
<br/>
<a id="bill.2.40.0"></a><a id="pl.72.20"></a><var>72.20</var>    Sec. 40. Minnesota Statutes 2008, section 473.606, subdivision 5, is amended to read:<br/>
<a id="pl.72.21"></a><var>72.21</var>    Subd. 5. <b>Employees, others, affirmative action; prevailing wage.</b> The corporation <br/>
<a id="pl.72.22"></a><var>72.22</var>shall have the power to appoint engineers and other consultants, attorneys, and such other <br/>
<a id="pl.72.23"></a><var>72.23</var>officers, agents, and employees as it may see fit, who shall perform such duties and receive <br/>
<a id="pl.72.24"></a><var>72.24</var>such compensation as the corporation may determine, and be removable at the pleasure of <br/>
<a id="pl.72.25"></a><var>72.25</var>the corporation. The corporation shall adopt an affirmative action plan, which shall be <br/>
<a id="pl.72.26"></a><var>72.26</var>submitted to the appropriate agency or office of the state for review and approval. The plan <br/>
<a id="pl.72.27"></a><var>72.27</var>shall include a yearly progress report to the agency or office. Officers and employees of <br/>
<a id="pl.72.28"></a><var>72.28</var>the corporation who cannot qualify and participate in the municipal employees retirement <br/>
<a id="pl.72.29"></a><var>72.29</var>fund under chapter 422A, shall be separated from service at the retirement age applicable <br/>
<a id="pl.72.30"></a><var>72.30</var>to officers or employees of the state of Minnesota in the classified service of the state civil <br/>
<a id="pl.72.31"></a><var>72.31</var>service as provided in section 
<statute_ref>43A.34</statute_ref>, or as the same may from time to time be amended, <br/>
<a id="pl.72.32"></a><var>72.32</var>regardless of the provisions of the Veteran's Preference Act. Whenever the corporation <br/>
<a id="pl.72.33"></a><var>72.33</var>performs any work within the limits of a city of the first class, or establishes a minimum <br/>
<a id="pl.72.34"></a><var>72.34</var>wage for skilled or unskilled labor in the specifications or any contract for work within <br/>
<a id="pl.73.1"></a><var>73.1</var>one of the cities, the rate of pay to such skilled and unskilled labor shall be the prevailing <br/>
<a id="pl.73.2"></a><var>73.2</var>rate of wage for such labor in that city.  <br/>
<br/>
<a id="bill.2.41.0"></a><a id="pl.73.3"></a><var>73.3</var>    Sec. 41. Minnesota Statutes 2008, section 475.52, subdivision 6, is amended to read:<br/>
<a id="pl.73.4"></a><var>73.4</var>    Subd. 6.  <b>Certain purposes.</b> Any municipality may issue bonds for paying <br/>
<a id="pl.73.5"></a><var>73.5</var>judgments against it; for refunding outstanding bonds; for funding floating indebtedness; <br/>
<a id="pl.73.6"></a><var>73.6</var>for funding actuarial liabilities to pay postemployment benefits to employees or officers <br/>
<a id="pl.73.7"></a><var>73.7</var>after their termination of service; or for funding all or part of the municipality's current <br/>
<a id="pl.73.8"></a><var>73.8</var>and future unfunded liability for a pension or retirement fund or plan referred to in <br/>
<a id="pl.73.9"></a><var>73.9</var>section 
         <statute_ref>356.20, subdivision 2</statute_ref>, as those liabilities are most recently computed pursuant <br/>
<a id="pl.73.10"></a><var>73.10</var>to sections 
         <statute_ref>356.215</statute_ref> and 
         <statute_ref>356.216</statute_ref>. The board of trustees or directors of a pension fund or <br/>
<a id="pl.73.11"></a><var>73.11</var>relief association referred to in section 
         <statute_ref>69.77</statute_ref> or chapter 422A must consent and must <br/>
<a id="pl.73.12"></a><var>73.12</var>be a party to any contract made under this section with respect to the fund held by it <br/>
<a id="pl.73.13"></a><var>73.13</var>for the benefit of and in trust for its members. For purposes of this section, the term <br/>
<a id="pl.73.14"></a><var>73.14</var>"postemployment benefits" means benefits giving rise to a liability under Statement No. <br/>
<a id="pl.73.15"></a><var>73.15</var>45 of the Governmental Accounting Standards Board. <br/>
<br/>
<a id="bill.2.42.0"></a><a id="pl.73.16"></a><var>73.16</var>    Sec. 42. Minnesota Statutes 2009 Supplement, section 480.181, subdivision 2, is <br/>
<a id="pl.73.17"></a><var>73.17</var>amended to read:<br/>
<a id="pl.73.18"></a><var>73.18</var>    Subd. 2. <b>Election to retain insurance and benefits; retirement.</b> (a) Before a <br/>
<a id="pl.73.19"></a><var>73.19</var>person is transferred to state employment under this section, the person may elect to do <br/>
<a id="pl.73.20"></a><var>73.20</var>either or both of the following:<br/>
<a id="pl.73.21"></a><var>73.21</var>(1) keep life insurance; hospital, medical, and dental insurance; and vacation and <br/>
<a id="pl.73.22"></a><var>73.22</var>sick leave benefits and accumulated time provided by the county instead of receiving <br/>
<a id="pl.73.23"></a><var>73.23</var>benefits from the state under the judicial branch personnel rules; or<br/>
<a id="pl.73.24"></a><var>73.24</var>(2) remain a member of the general employees retirement plan of the Public <br/>
<a id="pl.73.25"></a><var>73.25</var>Employees Retirement Association or the Minneapolis employees retirement fund MERF <br/>
<a id="pl.73.26"></a><var>73.26</var>division of the Public Employees Retirement Association instead of joining the Minnesota <br/>
<a id="pl.73.27"></a><var>73.27</var>State Retirement System.<br/>
<a id="pl.73.28"></a><var>73.28</var>Employees who make an election under clause (1) remain on the county payroll, <br/>
<a id="pl.73.29"></a><var>73.29</var>but the state shall reimburse the county on a quarterly basis for the salary and cost of the <br/>
<a id="pl.73.30"></a><var>73.30</var>benefits provided by the county. The state shall make the employer contribution to the <br/>
<a id="pl.73.31"></a><var>73.31</var>general employees retirement plan of the Public Employees Retirement Association or the <br/>
<a id="pl.73.32"></a><var>73.32</var>employer contribution under section 
         <statute_ref>422A.101 353.50, subdivision 1a 7, paragraphs (c) <br/>
<a id="pl.73.33"></a><var>73.33</var>and (d)
</statute_ref>, to the Minneapolis Employees Retirement Fund MERF division of the Public <br/>
<a id="pl.74.1"></a><var>74.1</var>Employees Retirement Association on behalf of employees who make an election under <br/>
<a id="pl.74.2"></a><var>74.2</var>clause (2). <br/>
<a id="pl.74.3"></a><var>74.3</var>(b) An employee who makes an election under paragraph (a), clause (1), may revoke <br/>
<a id="pl.74.4"></a><var>74.4</var>the election, once, at any time, but if the employee revokes the election, the employee <br/>
<a id="pl.74.5"></a><var>74.5</var>cannot make another election. An employee who makes an election under paragraph (a), <br/>
<a id="pl.74.6"></a><var>74.6</var>clause (2), may revoke the election at any time within six months after the person becomes <br/>
<a id="pl.74.7"></a><var>74.7</var>a state employee. Once an employee revokes this election, the employee cannot make <br/>
<a id="pl.74.8"></a><var>74.8</var>another election.<br/>
<a id="pl.74.9"></a><var>74.9</var>(c) The Supreme Court, after consultation with the Judicial Council, the <br/>
<a id="pl.74.10"></a><var>74.10</var>commissioner of management and budget, and the executive directors of the Public <br/>
<a id="pl.74.11"></a><var>74.11</var>Employees Retirement Association and the Minnesota State Retirement Association, shall <br/>
<a id="pl.74.12"></a><var>74.12</var>adopt procedures for making elections under this section.<br/>
<a id="pl.74.13"></a><var>74.13</var>(d) The Supreme Court shall notify all affected employees of the options available <br/>
<a id="pl.74.14"></a><var>74.14</var>under this section. The executive directors of the Public Employees Retirement <br/>
<a id="pl.74.15"></a><var>74.15</var>Association and the Minnesota State Retirement System shall provide counseling to <br/>
<a id="pl.74.16"></a><var>74.16</var>affected employees on the effect of making an election to remain a member of the Public <br/>
<a id="pl.74.17"></a><var>74.17</var>Employees Retirement Association.<br/>
<br/>
<a id="bill.2.43.0"></a><a id="pl.74.18"></a><var>74.18</var>    Sec. 43. <b>EFFECTIVE DATE.</b><br/>
<a id="pl.74.19"></a><var>74.19</var>Sections 1 to 42 are effective June 30, 2010.<br/>