1.1A bill for an act1.2relating to retirement; Minneapolis Employees Retirement Fund; transfer of 1.3administrative functions to the Public Employees Retirement Association; 1.4creation of MERF consolidation account within the Public Employees Retirement 1.5Association; appropriating money;amending Minnesota Statutes 2008, sections 1.611A.23, subdivision 4; 13D.01, subdivision 1; 43A.17, subdivision 9; 43A.316, 1.7subdivision 8; 69.021, subdivision 10; 126C.41, subdivision 3; 256D.21; 1.8353.01, subdivision 2b, by adding subdivisions; 353.03, subdivision 1; 353.05; 1.9353.27, as amended; 353.34, subdivisions 1, 6; 353.37, subdivisions 1, 2, 3, 1.104, 5; 353.46, subdivisions 2, 6; 353.64, subdivision 7; 353.71, subdivision 4; 1.11353.86, subdivisions 1, 2; 353.87, subdivisions 1, 2; 353.88; 354.71; 354A.011, 1.12subdivision 27; 354A.39; 355.095, subdivision 1; 356.214, subdivision 1; 1.13356.215, subdivision 8; 356.30, subdivision 3; 356.302, subdivisions 1, 7; 1.14356.303, subdivision 4; 356.407, subdivision 2; 356.431, subdivision 1; 356.465, 1.15subdivision 3; 356.64; 356.65, subdivision 2; 356.91; 422A.101, subdivision 3; 1.16422A.26; 473.511, subdivision 3; 473.606, subdivision 5; 475.52, subdivision 1.176; Minnesota Statutes 2009 Supplement, sections 6.67; 69.011, subdivision 1.181; 69.031, subdivision 5; 352.01, subdivision 2b; 353.01, subdivision 2a; 1.19353.06; 356.20, subdivision 2; 356.215, subdivision 11; 356.32, subdivision 2; 1.20356.401, subdivision 3; 356.415, subdivision 2; 356.96, subdivision 1; 480.181, 1.21subdivision 2; proposing coding for new law in Minnesota Statutes, chapter 1.22353; repealing Minnesota Statutes 2008, sections 13.63, subdivision 1; 69.011, 1.23subdivision 2a; 356.43; 422A.01, subdivisions 1, 2, 3, 4, 4a, 5, 6, 7, 8, 9, 10, 11, 1.2412, 13a, 17, 18; 422A.02; 422A.03; 422A.04; 422A.05, subdivisions 1, 2a, 2b, 1.252c, 2d, 2e, 2f, 5, 6, 8; 422A.06, subdivisions 1, 2, 3, 5, 6, 7; 422A.08, subdivision 1.261; 422A.09; 422A.10; 422A.101, subdivisions 1, 1a, 2, 2a; 422A.11; 422A.12; 1.27422A.13; 422A.14, subdivision 1; 422A.15; 422A.151; 422A.155; 422A.156; 1.28422A.16, subdivisions 1, 2, 3, 4, 5, 6, 7, 8, 9, 10; 422A.17; 422A.18, subdivisions 1.291, 2, 3, 4, 5, 7; 422A.19; 422A.20; 422A.21; 422A.22, subdivisions 1, 3, 4, 1.306; 422A.23, subdivisions 1, 2, 5, 6, 7, 8, 9, 10, 11, 12; 422A.231; 422A.24; 1.31422A.25; Minnesota Statutes 2009 Supplement, sections 422A.06, subdivision 8; 1.32422A.08, subdivision 5.1.33BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:2.1ARTICLE 12.2MERF CONSOLIDATION ACCOUNT IN PERA2.3    Section 1. Minnesota Statutes 2009 Supplement, section 353.01, subdivision 2a, 2.4is amended to read:2.5    Subd. 2a. Included employees. (a) Public employees whose salary from 2.6employment in one or more positions within one governmental subdivision exceeds $425 2.7in any month shall participate as members of the association. If the salary is less than 2.8$425 in a subsequent month, the employee retains membership eligibility. Eligible public 2.9employees shall participate as members of the association with retirement coverage by 2.10the public general employees retirement plan or under this chapter, the public employees 2.11police and fire retirement plan under this chapter, or the local government correctional 2.12employees retirement plan under chapter 353E, whichever applies, as a condition of their 2.13employment on the first day of employment unless they:2.14    (1) are specifically excluded under subdivision 2b;2.15    (2) do not exercise their option to elect retirement coverage in the association as 2.16provided in subdivision 2d, paragraph (a); or2.17    (3) are employees of the governmental subdivisions listed in subdivision 2d, 2.18paragraph (b), where the governmental subdivision has not elected to participate as a 2.19governmental subdivision covered by the association.2.20    (b) A public employee who was a member of the association on June 30, 2002, 2.21based on employment that qualified for membership coverage by the public employees 2.22retirement plan or the public employees police and fire plan under this chapter, or the 2.23local government correctional employees retirement plan under chapter 353E as of June 2.2430, 2002, retains that membership for the duration of the person's employment in that 2.25position or incumbency in elected office. Except as provided in subdivision 28, the person 2.26shall participate as a member until the employee or elected official terminates public 2.27employment under subdivision 11a or terminates membership under subdivision 11b.2.28    (c) Public employees under paragraph (a) include:2.29(1) physicians under section 
         353D.01, subdivision 2, who do not elect public 2.30employees defined contribution plan coverage under section 
         353D.02, subdivision 2;2.31(2) full-time employees of the Dakota County Agricultural Society; and2.32(3) employees of the Minneapolis Firefighters Relief Association or Minneapolis 2.33Police Relief Association who are not excluded employees under subdivision 2b due to 2.34coverage by the relief association pension plan and who elect Public Employee Retirement 2.35Association general plan coverage under Laws 2009, chapter 169, article 12, section 10.3.1(d) For the purpose of participation in the MERF division of the general employees 3.2retirement plan, public employees include employees who were members of the former 3.3Minneapolis Employees Retirement Fund on June 29, 2010, and who participate as 3.4members of the MERF division of the association.3.5    Sec. 2. Minnesota Statutes 2008, section 353.01, subdivision 2b, is amended to read:3.6    Subd. 2b. Excluded employees. The following public employees are not eligible to 3.7participate as members of the association with retirement coverage by the publicgeneral 3.8employees retirement plan, the local government correctional employees retirement plan 3.9under chapter 353E, or the public employees police and fire retirement plan:3.10    (1) public officers, other than county sheriffs, who are elected to a governing body, 3.11or persons who are appointed to fill a vacancy in an elective office of a governing body, 3.12whose term of office commences on or after July 1, 2002, for the service to be rendered 3.13in that elective position;3.14    (2) election officers or election judges;3.15    (3) patient and inmate personnel who perform services for a governmental 3.16subdivision;3.17    (4) except as otherwise specified in subdivision 12a, employees who are hired for 3.18a temporary position as defined under subdivision 12a, and employees who resign from 3.19a nontemporary position and accept a temporary position within 30 days in the same 3.20governmental subdivision;3.21    (5) employees who are employed by reason of work emergency caused by fire, 3.22flood, storm, or similar disaster;3.23    (6) employees who by virtue of their employment in one governmental subdivision 3.24are required by law to be a member of and to contribute to any of the plans or funds 3.25administered by the Minnesota State Retirement System, the Teachers Retirement 3.26Association, the Duluth Teachers Retirement Fund Association, the St. Paul Teachers 3.27Retirement Fund Association, the Minneapolis Employees Retirement Fund, or any police 3.28or firefighters relief association governed by section 
         69.77 that has not consolidated 3.29with the Public Employees Retirement Association, or any local police or firefighters 3.30consolidation account who have not elected the type of benefit coverage provided by the 3.31public employees police and fire fund under sections 
         353A.01 to 
         353A.10, or any persons 3.32covered by section 
         353.665, subdivision 4, 5, or 6, who have not elected public employees 3.33police and fire plan benefit coverage. This clause must not be construed to prevent a person 3.34from being a member of and contributing to the Public Employees Retirement Association 3.35and also belonging to and contributing to another public pension plan or fund for other 4.1service occurring during the same period of time. A person who meets the definition of 4.2"public employee" in subdivision 2 by virtue of other service occurring during the same 4.3period of time becomes a member of the association unless contributions are made to 4.4another public retirement fund on the salary based on the other service or to the Teachers 4.5Retirement Association by a teacher as defined in section 
         354.05, subdivision 2;4.6    (7) persons who are members of a religious order and are excluded from coverage 4.7under the federal Old Age, Survivors, Disability, and Health Insurance Program for the 4.8performance of service as specified in United States Code, title 42, section 410(a)(8)(A), 4.9as amended through January 1, 1987, if no irrevocable election of coverage has been made 4.10under section 3121(r) of the Internal Revenue Code of 1954, as amended;4.11    (8) employees of a governmental subdivision who have not reached the age of 4.1223 and are enrolled on a full-time basis to attend or are attending classes on a full-time 4.13basis at an accredited school, college, or university in an undergraduate, graduate, or 4.14professional-technical program, or a public or charter high school;4.15    (9) resident physicians, medical interns, and pharmacist residents and pharmacist 4.16interns who are serving in a degree or residency program in public hospitals or clinics;4.17    (10) students who are serving in an internship or residency program sponsored 4.18by an accredited educational institution;4.19    (11) persons who hold a part-time adult supplementary technical college license who 4.20render part-time teaching service in a technical college;4.21    (12) except for employees of Hennepin County or Hennepin Healthcare System, 4.22Inc., foreign citizens working for a governmental subdivision with a work permit of less 4.23than three years, or an H-1b visa valid for less than three years of employment. Upon 4.24notice to the association that the work permit or visa extends beyond the three-year period, 4.25the foreign citizens must be reported for membership from the date of the extension;4.26    (13) public hospital employees who elected not to participate as members of the 4.27association before 1972 and who did not elect to participate from July 1, 1988, to October 4.281, 1988;4.29    (14) except as provided in section 
         353.86, volunteer ambulance service personnel, 4.30as defined in subdivision 35, but persons who serve as volunteer ambulance service 4.31personnel may still qualify as public employees under subdivision 2 and may be members 4.32of the Public Employees Retirement Association and participants in the public general4.33employees retirement fund or the public employees police and fire fund, whichever 4.34applies, on the basis of compensation received from public employment service other than 4.35service as volunteer ambulance service personnel;5.1    (15) except as provided in section 
         353.87, volunteer firefighters, as defined in 5.2subdivision 36, engaging in activities undertaken as part of volunteer firefighter duties; 5.3provided that a person who is a volunteer firefighter may still qualify as a public 5.4employee under subdivision 2 and may be a member of the Public Employees Retirement 5.5Association and a participant in the public general employees retirement fund or the public 5.6employees police and fire fund, whichever applies, on the basis of compensation received 5.7from public employment activities other than those as a volunteer firefighter;5.8    (16) pipefitters and associated trades personnel employed by Independent School 5.9District No. 625, St. Paul, with coverage under a collective bargaining agreement by the 5.10pipefitters local 455 pension plan who were either first employed after May 1, 1997, or, 5.11if first employed before May 2, 1997, elected to be excluded under Laws 1997, chapter 5.12241, article 2, section 12;5.13    (17) electrical workers, plumbers, carpenters, and associated trades personnel 5.14employed by Independent School District No. 625, St. Paul, or the city of St. Paul, 5.15who have retirement coverage under a collective bargaining agreement by the Electrical 5.16Workers Local 110 pension plan, the United Association Plumbers Local 34 pension plan, 5.17or the Carpenters Local 87 pension plan who were either first employed after May 1, 5.182000, or, if first employed before May 2, 2000, elected to be excluded under Laws 2000, 5.19chapter 461, article 7, section 5;5.20    (18) bricklayers, allied craftworkers, cement masons, glaziers, glassworkers, 5.21painters, allied tradesworkers, and plasterers employed by the city of St. Paul or 5.22Independent School District No. 625, St. Paul, with coverage under a collective 5.23bargaining agreement by the Bricklayers and Allied Craftworkers Local 1 pension plan, 5.24the Cement Masons Local 633 pension plan, the Glaziers and Glassworkers Local L-1324 5.25pension plan, the Painters and Allied Trades Local 61 pension plan, or the Twin Cities 5.26Plasterers Local 265 pension plan who were either first employed after May 1, 2001, or if 5.27first employed before May 2, 2001, elected to be excluded under Laws 2001, First Special 5.28Session chapter 10, article 10, section 6;5.29    (19) plumbers employed by the Metropolitan Airports Commission, with coverage 5.30under a collective bargaining agreement by the Plumbers Local 34 pension plan, who either 5.31were first employed after May 1, 2001, or if first employed before May 2, 2001, elected to 5.32be excluded under Laws 2001, First Special Session chapter 10, article 10, section 6;5.33    (20) employees who are hired after June 30, 2002, to fill seasonal positions under 5.34subdivision 12b which are limited in duration by the employer to 185 consecutive calendar 5.35days or less in each year of employment with the governmental subdivision;6.1    (21) persons who are provided supported employment or work-study positions 6.2by a governmental subdivision and who participate in an employment or industries 6.3program maintained for the benefit of these persons where the governmental subdivision 6.4limits the position's duration to three years or less, including persons participating in a 6.5federal or state subsidized on-the-job training, work experience, senior citizen, youth, or 6.6unemployment relief program where the training or work experience is not provided as a 6.7part of, or for, future permanent public employment;6.8    (22) independent contractors and the employees of independent contractors; and6.9    (23) reemployed annuitants of the association during the course of that 6.10reemployment.6.11    Sec. 3. Minnesota Statutes 2008, section 353.01, is amended by adding a subdivision 6.12to read:6.13    Subd. 47.MERF division."MERF division" means the separate retirement plan 6.14within the general employees retirement plan of the Public Employees Retirement 6.15Association containing the applicable provisions of Minnesota Statutes 2008, chapter 6.16422A.6.17    Sec. 4. Minnesota Statutes 2008, section 353.01, is amended by adding a subdivision 6.18to read:6.19    Subd. 48.MERF division account."MERF division account" means the separate 6.20account within the retirement fund of the general employees retirement fund of the 6.21Public Employees Retirement Association in which the actuarial liabilities of the former 6.22Minneapolis Employees Retirement Fund are held, and in which the assets of the former 6.23Minneapolis Employees Retirement Fund are credited.6.24    Sec. 5. Minnesota Statutes 2008, section 353.05, is amended to read:6.25353.05 CUSTODIAN OF FUNDS.6.26The commissioner of management and budget shall be ex officio treasurer of the 6.27retirement funds of the association, including the MERF division,  and the general bond of 6.28the commissioner of management and budget to the state shall be so conditioned as to 6.29cover all liability for acts as treasurer of these funds. All moneysmoney of the association 6.30received by the commissioner of management and budget shall be set aside in the state 6.31treasury to the credit of the proper fund or account. The commissioner of management and 6.32budget shall transmit monthly to the executive director a detailed statement of all amounts 6.33so received and credited to the fund funds, including the MERF division. Payments out 7.1of the fund shallfunds, including the MERF division, may only be made only on warrants 7.2issued by the commissioner of management and budget, upon abstracts signed by the 7.3executive director; provided that abstracts for investment may be signed by the secretary7.4executive director of the State Board of Investment.7.5    Sec. 6. Minnesota Statutes 2009 Supplement, section 353.06, is amended to read:7.6353.06 STATE BOARD OF INVESTMENT TO INVEST FUNDS.7.7The executive director shall from time to time certify to the State Board of 7.8Investment for investment such portions of the retirement fundfunds of the association, 7.9including the MERF division, as in itsthe director's judgment may not be required for 7.10immediate use. The State Board of Investment shall thereupon invest and reinvest the sum 7.11so certified, or transferred, in such securities as are duly authorized as legal investments 7.12for state employees retirement fundunder section 11A.24 and shall havehas authority to 7.13sell, convey, and exchange such securities and invest and reinvest the securities when it 7.14deems it desirable to do so and shall sell securities upon request of the board of trustees7.15executive director when such funds are needed for its purposes. All of the provisions 7.16regarding accounting procedures and restrictions and conditions for the purchase and 7.17sale of securities under chapter 11A must apply to the accounting, purchase and sale of 7.18securities for the funds of the Public Employees Retirement fund Association, including 7.19the MERF division. 7.20    Sec. 7. Minnesota Statutes 2008, section 353.27, as amended by Laws 2009, chapter 7.21169, article 1, section 32, and article 4, sections 9, 10, 11, and 12, is amended to read:7.22353.27 PUBLICGENERAL EMPLOYEES RETIREMENT FUND.7.23    Subdivision 1. Income; disbursements. There is a special fund known as the 7.24"public general employees retirement fund," the "retirement fund," or the "fund," which 7.25must include all the assets of the general employees retirement plan of the association. 7.26This fund must be credited with all contributions, all interest and all other income of the 7.27general employees retirement plan of the Public Employees Retirement Association that 7.28are authorized by law. From this fund there is appropriated the payments authorized by 7.29this chaptersections 353.01 to 353.46 in the amounts and at such time provided herein, 7.30including the expenses of administering the general employees retirement plan and fund.7.31    Subd. 1a.MERF division account established; revenue and disbursements.The 7.32MERF division account is established as a special account. The MERF division account 7.33includes all of the assets of the former Minneapolis Employees Retirement Fund that 7.34were transferred to the administration of the Public Employees Retirement Association 8.1under section 353.50. The special account is credited with the contributions under section 8.2353.50, subdivision 7, state aid under sections 356.43 and 422A.101, subdivision 3, 8.3investment performance on the special account assets, and all other income of the MERF 8.4division authorized by law. The payments of annuities and benefits authorized by chapter 8.5422A in the amounts and at the times provided in that chapter, and the administrative 8.6expenses of the MERF division are appropriated from the special account.8.7    Subd. 2. General employees retirement plan; employee contribution. (a) For 8.8a basic member of the general employees retirement plan of the Public Employees 8.9Retirement Association, the employee contribution is 9.10 percent of salary. For a 8.10coordinated member of the general employees retirement plan of the Public Employees 8.11Retirement Association, the employee contribution is six percent of salary plus any 8.12contribution rate adjustment under subdivision 3b.8.13(b) These contributions must be made by deduction from salary as defined in section 8.14353.01, subdivision 10
         , in the manner provided in subdivision 4. If any portion of a 8.15member's salary is paid from other than public funds, the member's employee contribution 8.16must be based on the total salary received by the member from all sources.8.17    Subd. 3. General employees retirement plan; employer contribution. (a) For 8.18a basic member of the general employees retirement plan of the Public Employees 8.19Retirement Association, the employer contribution is 9.10 percent of salary. For a 8.20coordinated member of the general employees retirement plan of the Public Employees 8.21Retirement Association, the employer contribution is six percent of salary plus any 8.22contribution rate adjustment under subdivision 3b.8.23(b) This contribution must be made from funds available to the employing 8.24subdivision by the means and in the manner provided in section 
         353.28.8.25    Subd. 3a. Additional employer contribution. (a) An additional employer 8.26contribution to the general employees retirement fund of the Public Employees Retirement 8.27Association must be made equal to the following applicable percentage of the total salary 8.28amount for "basic members" and for "coordinated members":

8.29Basic ProgramCoordinated Program8.30Effective before January 1, 20062.68.438.31Effective January 1, 20062.68.508.32Effective January 1, 20092.68.758.33Effective January 1, 20102.681.00

8.34These contributions must be made from funds available to the employing subdivision 8.35by the means and in the manner provided in section 
         353.28.8.36(b) The coordinated program contribution rates set forth in paragraph (a) effective 8.37for January 1, 2009, or January 1, 2010, must not be implemented if, following receipt of 9.1the July 1, 2008, or July 1, 2009, annual actuarial valuation reportsreport under section 9.2356.215
         , respectively, the actuarially required contributions are equal to or less than the 9.3total rates under this section in effect as of January 1, 2008.9.4(c) This subdivision is repealed once the actuarial value of the assets of the general 9.5employees retirement plan of the Public Employees Retirement Association equal or 9.6exceed the actuarial accrued liability of the plan as determined by the actuary retained 9.7under sections 
         356.214 and 
         356.215. The repeal is effective on the first day of the first full 9.8pay period occurring after March 31 of the calendar year following the issuance of the 9.9actuarial valuation upon which the repeal is based.9.10    Subd. 3b. Change in employee and employer contributions in certain instances.9.11(a) For purposes of this section, a contribution sufficiency exists if the total of the 9.12employee contribution under subdivision 2, the employer contribution under subdivision 9.133, the additional employer contribution under subdivision 3a, and any additional 9.14contribution previously imposed under this subdivision exceeds the total of the normal 9.15cost, the administrative expenses, and the amortization contribution of the general 9.16employees retirement plan as reported in the most recent actuarial valuation of the 9.17retirement plan prepared by the actuary retained under section 
         356.214 and prepared under 9.18section 
         356.215 and the standards for actuarial work of the Legislative Commission on 9.19Pensions and Retirement. For purposes of this section, a contribution deficiency exists if 9.20the total of the employee contributions under subdivision 2, the employer contributions 9.21under subdivision 3, the additional employer contribution under subdivision 3a, and any 9.22additional contribution previously imposed under this subdivision is less than the total 9.23of the normal cost, the administrative expenses, and the amortization contribution of the 9.24general employees retirement plan as reported in the most recent actuarial valuation of the 9.25retirement plan prepared by the actuary retained under section 
         356.214 and prepared under 9.26section 
         356.215 and the standards for actuarial work of the Legislative Commission on 9.27Pensions and Retirement.9.28(b) Employee and employer contributions to the general employees retirement plan 9.29under subdivisions 2 and 3 must be adjusted:9.30(1) if, after July 1, 2010, the regular actuarial valuations of the general employees 9.31retirement plan of the Public Employees Retirement Association under section 
         356.2159.32indicate that there is a contribution sufficiency under paragraph (a) equal to or greater 9.33than 0.5 percent of covered payroll for two consecutive years, the coordinated program 9.34employee and employer contribution rates must be decreased as determined under 9.35paragraph (c) to a level such that the sufficiency equals no more than 0.25 percent of 9.36covered payroll based on the most recent actuarial valuation; or10.1(2) if, after July 1, 2010, the regular actuarial valuations of the general employees 10.2retirement plan of the Public Employees Retirement Association under section 
         356.21510.3indicate that there is a deficiency equal to or greater than 0.5 percent of covered payroll for 10.4two consecutive years, the coordinated program employee and employer contribution rates 10.5must be increased as determined under paragraph (c) to a level such that no deficiency 10.6exists based on the most recent actuarial valuation.10.7(c) The general employees retirement plan contribution rate increase or decrease 10.8must be determined by the executive director of the Public Employees Retirement 10.9Association, must be reported to the chair and the executive director of the Legislative 10.10Commission on Pensions and Retirement on or before the next February 1, and, if the 10.11Legislative Commission on Pensions and Retirement does not recommend against the rate 10.12change or does not recommend a modification in the rate change, is effective on the 10.13next July 1 following the determination by the executive director that a contribution 10.14deficiency or sufficiency has existed for two consecutive fiscal years based on the most 10.15recent actuarial valuations under section 
         356.215. If the actuarially required contribution 10.16of the general employees retirement plan exceeds or is less than the total support provided 10.17by the combined employee and employer contribution rates by more than 0.5 percent of 10.18covered payroll, the general employees retirement plan coordinated program employee 10.19and employer contribution rates must be adjusted incrementally over one or more years to 10.20a level such that there remains a contribution sufficiency of no more than 0.25 percent 10.21of covered payroll.10.22(d) No incremental adjustment may exceed 0.25 percent for either the general 10.23employees retirement plan coordinated program employee and employer contribution rates 10.24per year in which any adjustment is implemented. A general employees retirement plan 10.25contribution rate adjustment under this subdivision must not be made until at least two 10.26years have passed since fully implementing a previous adjustment under this subdivision.10.27(e) The general employees retirement plan contribution sufficiency or deficiency 10.28determination under paragraphs (a) through (d) must be made without the inclusion of 10.29the contributions to, the funded condition of, or the actuarial funding requirements of 10.30the MERF division.10.31    Subd. 4. Employer reporting requirements; contributions; member status.10.32(a) A representative authorized by the head of each department shall deduct employee 10.33contributions from the salary of each employee who qualifies for membership in the 10.34general employees retirement plan of the Public Employees Retirement Association or in 10.35the public employees police and fire retirement plan under this chapter and remit payment 10.36in a manner prescribed by the executive director for the aggregate amount of the employee 11.1contributions, the employer contributions and the additional employer contributions to be 11.2received within 14 calendar days. The head of each department or the person's designee 11.3shall for each pay period submit to the association a salary deduction report in the format 11.4prescribed by the executive director. Data required to be submitted as part of salary 11.5deduction reporting must include, but are not limited to:11.6(1)  the legal names and Social Security numbers of employees who are members;11.7(2) the amount of each employee's salary deduction;11.8(3) the amount of salary from which each deduction was made;11.9(4) the beginning and ending dates of the payroll period covered and the date of 11.10actual payment; and11.11(5) adjustments or corrections covering past pay periods.11.12(b) Employers must furnish the data required for enrollment for each new employee 11.13who qualifies for membership in the general employees retirement plan of the Public 11.14Employees Retirement Association or in the public employees police and fire retirement 11.15plan in the format prescribed by the executive director. The required enrollment data 11.16on new employees must be submitted to the association prior to or concurrent with the 11.17submission of the initial employee salary deduction. The employer shall also report 11.18to the association all member employment status changes, such as leaves of absence, 11.19terminations, and death, and shall report the effective dates of those changes, on an 11.20ongoing basis for the payroll cycle in which they occur. The employer shall furnish data, 11.21forms, and reports as may be required by the executive director for proper administration 11.22of the retirement system. Before implementing new or different computerized reporting 11.23requirements, the executive director shall give appropriate advance notice to governmental 11.24subdivisions to allow time for system modifications.11.25(c) Notwithstanding paragraph (a), the associationexecutive director may provide 11.26for less frequent reporting and payments for small employers.11.27    Subd. 7. Adjustment for erroneous receipts or disbursements. (a) Except 11.28as provided in paragraph (b), erroneous employee deductions and erroneous employer 11.29contributions and additional employer contributions to the general employees retirement 11.30plan of the Public Employees Retirement Association or to the public employees police 11.31and fire retirement plan for a person, who otherwise does not qualify for membership 11.32under this chapter, are considered:11.33(1) valid if the initial erroneous deduction began before January 1, 1990. Upon 11.34determination of the error by the association, the person may continue membership in the 11.35association while employed in the same position for which erroneous deductions were 12.1taken, or file a written election to terminate membership and apply for a refund upon 12.2termination of public service or defer an annuity under section 
         353.34; or 12.3(2) invalid, if the initial erroneous employee deduction began on or after January 1, 12.41990. Upon determination of the error, the association shall refund all erroneous employee 12.5deductions and all erroneous employer contributions as specified in paragraph (e). No 12.6person may claim a right to continued or past membership in the association based on 12.7erroneous deductions which began on or after January 1, 1990. 12.8(b) Erroneous deductions taken from the salary of a person who did not qualify for 12.9membership in the general employees retirement plan of the Public Employees Retirement 12.10Association or in the public employees police and fire retirement plan by virtue of 12.11concurrent employment before July 1, 1978, which required contributions to another 12.12retirement fund or relief association established for the benefit of officers and employees 12.13of a governmental subdivision, are invalid. Upon discovery of the error, the association 12.14shall remove all invalid service and, upon termination of public service, the association 12.15shall refund all erroneous employee deductions to the person, with interest as determined 12.16under section 
         353.34, subdivision 2, and all erroneous employer contributions without 12.17interest to the employer. This paragraph has both retroactive and prospective application. 12.18(c) Adjustments to correct employer contributions and employee deductions taken 12.19in error from amounts which are not salary under section 
         353.01, subdivision 10, must 12.20be made as specified in paragraph (e). The period of adjustment must be limited to the 12.21fiscal year in which the error is discovered by the association and the immediate two 12.22preceding fiscal years. 12.23(d) If there is evidence of fraud or other misconduct on the part of the employee or 12.24the employer, the board of trustees may authorize adjustments to the account of a member 12.25or former member to correct erroneous employee deductions and employer contributions 12.26on invalid salary and the recovery of any overpayments for a period longer than provided 12.27for under paragraph (c).12.28(e) Upon discovery of the receipt of erroneous employee deductions and employer 12.29contributions under paragraph (a), clause (2), or paragraph (c), the association must require 12.30the employer to discontinue the erroneous employee deductions and erroneous employer 12.31contributions reported on behalf of a member. Upon discontinuation, the association must:12.32(1) for a member, provide a refund or credit to the employer in the amount of the 12.33invalid employee deductions with interest on the invalid employee deductions at the rate 12.34specified under section 
         353.34, subdivision 2, from the received date of each invalid salary 12.35transaction through the date the credit or refund is made; and the employer must pay the 12.36refunded employee deductions plus interest to the member;13.1(2) for a former member who:13.2(i) is not receiving a retirement annuity or benefit, return the erroneous employee 13.3deductions to the former member through a refund with interest at the rate specified under 13.4section 
         353.34, subdivision 2, from the received date of each invalid salary transaction 13.5through the date the credit or refund is made; or13.6(ii) is receiving a retirement annuity or disability benefit, or a person who is 13.7receiving an optional annuity or survivor benefit, for whom it has been determined an 13.8overpayment must be recovered, adjust the payment amount and recover the overpayments 13.9as provided under this section; and13.10(3) return the invalid employer contributions reported on behalf of a member or 13.11former member to the employer by providing a credit against future contributions payable 13.12by the employer.13.13(f) In the event that a salary warrant or check from which a deduction for the 13.14retirement fund was taken has been canceled or the amount of the warrant or check 13.15returned to the funds of the department making the payment, a refund of the sum 13.16deducted, or any portion of it that is required to adjust the deductions, must be made 13.17to the department or institution.13.18(g) If the accrual date of any retirement annuity, survivor benefit, or disability benefit 13.19is within the limitation period specified in paragraph (c), and an overpayment has resulted 13.20by using invalid service or salary, or due to any erroneous calculation procedure, the 13.21association must recalculate the annuity or benefit payable and recover any overpayment 13.22as provided under subdivision 7b.13.23(h) Notwithstanding the provisions of this subdivision, the association may apply 13.24the Revenue Procedures defined in the federal Internal Revenue Service Employee Plans 13.25Compliance Resolution System and not issue a refund of erroneous employee deductions 13.26and employer contributions or not recover a small overpayment of benefits if the cost to 13.27correct the error would exceed the amount of the member refund or overpayment.13.28(i) Any fees or penalties assessed by the federal Internal Revenue Service for any 13.29failure by an employer to follow the statutory requirements for reporting eligible members 13.30and salary must be paid by the employer.13.31    Subd. 7a. Deductions or contributions transmitted by error. (a) If employee 13.32deductions and employer contributions under this section, section 353.50, 353.65, or 13.33353E.03 were erroneously transmitted to the association, but should have been transmitted 13.34to another Minnesota public pension plan, the executive director shall transfer the 13.35erroneous employee deductions and employer contributions to the appropriate retirement 14.1fund or individual account, as applicable, without interest. The time limitations specified 14.2in subdivisions 7 and 12 do not apply.14.3(b) For purposes of this subdivision, a Minnesota public pension plan means a 14.4plan specified in section 
         356.30, subdivision 3, or the plans governed by chapters 353D 14.5and 354B. 14.6(c) A potential transfer under paragraph (a) that is reasonably determined to cause 14.7the plan to fail to be a qualified plan under section 401(a) of the federal Internal Revenue 14.8Code, as amended, must not be made by the executive director of the association. Within 14.930 days after being notified by the Public Employees Retirement Association of an 14.10unmade potential transfer under this paragraph, the employer of the affected person 14.11must transmit an amount representing the applicable salary deductions and employer 14.12contributions, without interest, to the retirement fund of the appropriate Minnesota public 14.13pension plan, or to the applicable individual account if the proper coverage is by a defined 14.14contribution plan. The association must provide the employing unit a credit for the amount 14.15of the erroneous salary deductions and employer contributions against future contributions 14.16from the employer. If the employing unit receives a credit under this paragraph, the 14.17employing unit is responsible for refunding to the applicable employee any amount that 14.18had been erroneously deducted from the person's salary.14.19    Subd. 7b. Recovery of overpayments. (a) In the event the executive director 14.20determines that an overpaid annuity or benefit thatfrom the general employees retirement 14.21plan of the Public Employees Retirement Association, the public employees police and 14.22fire retirement plan, or the local government correctional employees retirement plan is 14.23the result of invalid salary included in the average salary used to calculate the payment 14.24amount must be recovered, the association must determine the amount of the employee 14.25deductions taken in error on the invalid salary, with interest determined in the manner 14.26provided for a former member under subdivision 7, paragraph (e), clause (2), item (i), 14.27and must subtract that amount from the total annuity or benefit overpayment, and the 14.28remaining balance of the overpaid annuity or benefit, if any, must be recovered.14.29(b) If the invalid employee deductions plus interest exceed the amount of the 14.30overpaid benefits, the balance must be refunded to the person to whom the benefit or 14.31annuity is being paid.14.32(c) Any invalid employer contributions reported on the invalid salary must be 14.33credited to the employer as provided in subdivision 7, paragraph (e).14.34(d) If a member or former member, who is receiving a retirement annuity or 14.35disability benefit for which an overpayment is being recovered, dies before recovery of 14.36the overpayment is completed and a joint and survivor optional annuity is payable, the 15.1remaining balance of the overpaid annuity or benefit must continue to be recovered from 15.2the payment to the optional annuity beneficiary.15.3(e) If the association finds that a refund has been overpaid to a former member, 15.4beneficiary or other person, the amount of the overpayment must be recovered for the 15.5benefit of the respective retirement fund or account.15.6(f) The board of trustees shall adopt policies directing the period of time and manner 15.7for the collection of any overpaid retirement or optional annuity, and survivor or disability 15.8benefit, or a refund that the executive director determines must be recovered as provided 15.9under this section.15.10    Subd. 7c. Limitation on additional plan coverage. No deductions for any plan 15.11under this chapter or chapter 353E may be taken from the salary of a person who is 15.12employed by a governmental subdivision under section 
         353.01, subdivision 6, and who is 15.13receiving disability benefit payments from any plan under this chapter or chapter 353E 15.14unless the person waives the right to further disability benefit payments.15.15    Subd. 8. District court reporters; salary deductions. Deductions from the salary 15.16of a district court reporter in a judicial district consisting of two or more counties shall be 15.17made by the auditor of the county in which the bond and official oath of such district court 15.18reporter are filed, from the portion of salary paid by such county.15.19    Subd. 9. Fee officers; contributions; obligations of employers. Any appointed or 15.20elected officer of a governmental subdivision who was or is a "public employee" within 15.21the meaning of section 
         353.01 and was or is a member of the fundgeneral employees 15.22retirement plan of the Public Employees Retirement Association and whose salary 15.23was or is paid in whole or in part from revenue derived by fees and assessments, shall 15.24pay employee contribution in the amount, at the time, and in the manner provided in 15.25subdivisions 2 and 4. This subdivision shalldoes not apply to district court reporters. 15.26The employer contribution as provided in subdivision 3, and the additional employer 15.27contribution as provided in subdivision 3a,  with respect to such service shallmust be 15.28paid by the governmental subdivision. This subdivision shall havehas both retroactive 15.29and prospective application as to all such members; and every employing governmental 15.30subdivision is deemed liable, retroactively and prospectively, for all employer and 15.31additional employer contributions for every such member of the general employees 15.32retirement plan in its employ. Delinquencies under this section shall be are governed 15.33in all respects by section 
         353.28. 15.34    Subd. 10. Employer exclusion reports. The head of a department shall annually 15.35furnish the executive director with an exclusion report listing only those employees in 15.36potentially PERA general employees retirement plan-eligible positions who were not 16.1reported as members of the associationgeneral employees retirement plan and who worked 16.2during the school year for school employees and calendar year for nonschool employees. 16.3The department head must certify the accuracy and completeness of the exclusion report 16.4to the association. The executive director shall prescribe the manner and forms, including 16.5standardized exclusion codes, to be used by a governmental subdivision in preparing and 16.6filing exclusion reports. The executive director shall also check the exclusion report to 16.7ascertain whether any omissions have been made by a department head in the reporting 16.8of new public employees for membership. The executive director may delegate an 16.9association employee under section 
         353.03, subdivision 3a, paragraph (b), clause (5), to 16.10conduct a field audit to review the payroll records of a governmental subdivision. 16.11    Subd. 11. Employers; required to furnish requested information. (a) All 16.12governmental subdivisions shall furnish promptly such other information relative to the 16.13employment status of all employees or former employees, including, but not limited to, 16.14payroll abstracts pertaining to all past and present employees, as may be requested by the 16.15executive director, including schedules of salaries applicable to various categories of 16.16employment.16.17(b) In the event payroll abstract records have been lost or destroyed, for whatever 16.18reason or in whatever manner, so that such schedules of salaries cannot be furnished 16.19therefrom, the employing governmental subdivision, in lieu thereof, shall furnish to the 16.20association an estimate of the earnings of any employee or former employee for any 16.21period as may be requested by the executive director. If the association is provided a 16.22schedule of estimated earnings, the executive director is authorized to use the same as a 16.23basis for making whatever computations might be necessary for determining obligations 16.24of the employee and employer to the general employees retirement fund plan, the public 16.25employees police and fire retirement plan, or the local government correctional employees 16.26retirement plan. If estimates are not furnished by the employer at the request of the 16.27executive director, the executive director may estimate the obligations of the employee 16.28and employer to the general employees retirement fund, the public employees police and 16.29fire retirement plan, or the local government correctional employees retirement plan based 16.30upon those records that are in its possession.16.31    Subd. 12. Omitted salary deductions; obligations. (a) In the case of omission 16.32of required deductions for the general employees retirement plan, the public employees 16.33police and fire retirement plan, or the local government correctional employees retirement 16.34plan from the salary of an employee, the department head or designee shall immediately, 16.35upon discovery, report the employee for membership and deduct the employee deductions 16.36under subdivision 4 during the current pay period or during the pay period immediately 17.1following the discovery of the omission. Payment for the omitted obligations may only be 17.2made in accordance with reporting procedures and methods established by the executive 17.3director.17.4(b) When the entire omission period of an employee does not exceed 60 days, the 17.5governmental subdivision may report and submit payment of the omitted employee 17.6deductions and the omitted employer contributions through the reporting processes under 17.7subdivision 4.17.8(c) When the omission period of an employee exceeds 60 days, the governmental 17.9subdivision shall furnish to the association sufficient data and documentation upon which 17.10the obligation for omitted employee and employer contributions can be calculated. 17.11The omitted employee deductions must be deducted from the employee's subsequent 17.12salary payment or payments and remitted to the association for deposit in the applicable 17.13retirement fund. The employee shall pay omitted employee deductions due for the 60 17.14days prior to the end of the last pay period in the omission period during which salary 17.15was earned. The employer shall pay any remaining omitted employee deductions and any 17.16omitted employer contributions, plus cumulative interest at an annual rate of 8.5 percent 17.17compounded annually, from the date or dates each omitted employee contribution was 17.18first payable.17.19(d) An employer shall not hold an employee liable for omitted employee deductions 17.20beyond the pay period dates under paragraph (c), nor attempt to recover from the employee 17.21those employee deductions paid by the employer on behalf of the employee. Omitted 17.22deductions due under paragraph (c) which are not paid by the employee constitute a 17.23liability of the employer that failed to deduct the omitted deductions from the employee's 17.24salary. The employer shall make payment with interest at an annual rate of 8.5 percent 17.25compounded annually. Omitted employee deductions are no longer due if an employee 17.26terminates public service before making payment of omitted employee deductions to 17.27the association, but the employer remains liable to pay omitted employer contributions 17.28plus interest at an annual rate of 8.5 percent compounded annually from the date the 17.29contributions were first payable.17.30(e) The association may not commence action for the recovery of omitted employee 17.31deductions and employer contributions after the expiration of three calendar years after 17.32the calendar year in which the contributions and deductions were omitted. Except as 17.33provided under paragraph (b), no payment may be made or accepted unless the association 17.34has already commenced action for recovery of omitted deductions. An action for recovery 17.35commences on the date of the mailing of any written correspondence from the association 18.1requesting information from the governmental subdivision upon which to determine 18.2whether or not omitted deductions occurred.18.3    Subd. 12a. Terminated employees: omitted deductions. A terminated employee 18.4who was a member of the general employees retirement plan of the Public Employees 18.5Retirement Association, the public employees police and fire retirement plan, or the local 18.6government correctional employees retirement plan and who has a period of employment 18.7in which previously omitted employer contributions were made under subdivision 12 18.8but for whom no, or only partial, omitted employee contributions have been made, or 18.9a member who had prior coverage in the association for which previously omitted 18.10employer contributions were made under subdivision 12 but who terminated service 18.11before required omitted employee deductions could be withheld from salary, may pay the 18.12omitted employee deductions for the period on which omitted employer contributions 18.13were previously paid plus interest at an annual rate of 8.5 percent compounded annually. 18.14A terminated employee may pay the omitted employee deductions plus interest within six 18.15months of an initial notification from the association of eligibility to pay those omitted 18.16deductions. If a terminated employee is reemployed in a position covered under a public 18.17pension fund under section 
         356.30, subdivision 3, and elects to pay omitted employee 18.18deductions, payment must be made no later than six months after a subsequent termination 18.19of public service. 18.20    Subd. 12b. Terminated employees: immediate eligibility. If deductions were 18.21omitted from salary adjustments or final salary of a terminated employee who was a 18.22member of the general employees retirement plan, the public employees police and fire 18.23retirement plan, or the local government correctional employees retirement plan and who 18.24is immediately eligible to draw a monthly benefit, the employer shall pay the omitted 18.25employer and employer additional contributions plus interest on both the employer and 18.26employee amounts due at an annual rate of 8.5 percent compounded annually. The 18.27employee shall pay the employee deductions within six months of an initial notification 18.28from the association of eligibility to pay omitted deductions or the employee forfeits 18.29the right to make the payment.18.30    Subd. 13. Certain warrants canceled. A warrant payable from the general 18.31employees retirement fund, the public employees police and fire retirement fund, or the 18.32local government correctional retirement fund remaining unpaid for a period of six 18.33months must be canceled into the applicable retirement fund and not canceled into the 18.34state's general fund.18.35    Subd. 14. Periods before initial coverage date. (a) If an entity is determined to 18.36be a governmental subdivision due to receipt of a written notice of eligibility from the 19.1association with respect to the general employees retirement plan, the public employees 19.2police and fire retirement plan, or the local government correctional retirement plan, that 19.3employer and its employees are subject to the requirements of subdivision 12, effective 19.4retroactively to the date that the executive director of the association determines that 19.5the entity first met the definition of a governmental subdivision, if that date predates 19.6the notice of eligibility.19.7    (b) If the retroactive time period under paragraph (a) exceeds three years, an 19.8employee is authorized to purchase service credit in the applicable Public Employees 19.9Retirement Association plan for the portion of the period in excess of three years, by 19.10making payment under section 
         356.551. Notwithstanding any provision of section 19.11356.551, subdivision 2
         , to the contrary, regarding time limits on purchases, payment of a 19.12service credit purchase amount may be made anytime before the termination of public 19.13service.19.14    (c) This subdivision does not apply if the applicable employment under paragraph 19.15(a) included coverage by any public or private defined benefit or defined contribution 19.16retirement plan, other than a volunteer firefighters relief association. If this paragraph 19.17applies, an individual is prohibited from purchasing service credit from a Public Employees 19.18Retirement Association plan for any period or periods specified in paragraph (a).19.19    Sec. 8. Minnesota Statutes 2008, section 353.34, subdivision 1, is amended to read:19.20    Subdivision 1. Refund or deferred annuity. (a) A former member is entitled 19.21to a refund of accumulated employee deductions under subdivision 2, or to a deferred 19.22annuity under subdivision 3. Application for a refund may not be made before the date of 19.23termination of public service. Except as specified in paragraph (b), a refund must be paid 19.24within 120 days following receipt of the application unless the applicant has again become 19.25a public employee required to be covered by the association.19.26(b) If an individual was placed on layoff under section 
         353.01, subdivision 12 or 12c, 19.27a refund is not payable before termination of service under section 
         353.01, subdivision  11a. 19.28(c) An individual who terminates public service covered by the Public Employees 19.29Retirement Association general employees retirement plan, the MERF division, the 19.30Public Employees Retirement Association police and fire retirement plan, or the public 19.31employees local government corrections service retirement plan, and who is employed 19.32by a different employer and who becomes an active member covered by one of the other 19.33two plans, may receive a refund of employee contributions plus six percent interest 19.34compounded annually from the plan from which the member terminated service.20.1    Sec. 9. Minnesota Statutes 2008, section 353.34, subdivision 6, is amended to read:20.2    Subd. 6. Additions to fund. The board of trustees may credit to the general 20.3employees retirement fund any moneysmoney received in the form of contributions, 20.4donations, gifts, appropriations, bequests, or otherwise.20.5    Sec. 10. Minnesota Statutes 2008, section 353.37, subdivision 1, is amended to read:20.6    Subdivision 1. Salary maximums.(a) The annuity of a person otherwise eligible 20.7for an annuity under this chapterfrom the general employees retirement plan of the Public 20.8Employees Retirement Association, the public employees police and fire retirement plan, 20.9or the local government correctional employees retirement plan must be suspended under 20.10subdivision 2 or reduced under subdivision 3, whichever results in the higher annual 20.11annuity amount, if the person reenters public service as a nonelective employee of a 20.12governmental subdivision in a position covered by this chapter or returns to work as an 20.13employee of a labor organization that represents public employees who are association 20.14members under this chapter and salary for the reemployment service exceeds the annual 20.15maximum earnings allowable for that age for the continued receipt of full benefit amounts 20.16monthly under the federal Old Age, Survivors and Disability Insurance Program as set by 20.17the secretary of health and human services under United States Code, title 42, section 403, 20.18in any calendar year. If the person has not yet reached the minimum age for the receipt 20.19of Social Security benefits, the maximum salary for the person is equal to the annual 20.20maximum earnings allowable for the minimum age for the receipt of Social Security 20.21benefits.20.22(b) The provisions of paragraph (a) do not apply to the members of the MERF 20.23division.20.24    Sec. 11. Minnesota Statutes 2008, section 353.37, subdivision 2, is amended to read:20.25    Subd. 2. Suspension of annuity.(a) The association shall suspend the annuity on 20.26the first of the month after the month in which the salary of the reemployed annuitant 20.27described in subdivision 1, paragraph (a), exceeds the maximums set in subdivision 1, 20.28paragraph (a), based only on those months in which the annuitant is actually employed 20.29in nonelective public service in a position covered under this chapter or employment 20.30with a labor organization that represents public employees who are association members 20.31of a retirement plan under this chapter or chapter 353E. 20.32(b) An annuitant who is elected to public office after retirement may hold that office 20.33and receive an annuity otherwise payable from a retirement plan administered by the 20.34association.21.1    Sec. 12. Minnesota Statutes 2008, section 353.37, subdivision 3, is amended to read:21.2    Subd. 3. Reduction of annuity.(a) The association shall reduce the amount 21.3of the annuity of a person who has not reached the retirement age by one-half of the 21.4amount in excess of the applicable reemployment income maximum under subdivision 21.51, paragraph (a).21.6(b) There is no reduction upon reemployment, regardless of income, for a person 21.7who has reached the retirement age.21.8    Sec. 13. Minnesota Statutes 2008, section 353.37, subdivision 4, is amended to read:21.9    Subd. 4. Resumption of annuity. The association shall resume paying a full 21.10annuity to the reemployed annuitant described in subdivision 1, paragraph (a), at the 21.11start of each calendar year until the salary exceeds the maximums under subdivision 1, 21.12paragraph (a), or on the first of the month following the termination of the employment 21.13which resulted in the suspension of the annuity. The executive director may adopt policies 21.14regarding the suspension and reduction of annuities under this section.21.15    Sec. 14. Minnesota Statutes 2008, section 353.37, subdivision 5, is amended to read:21.16    Subd. 5. Effect on annuity. Except as provided under this section, public service 21.17performed by an annuitant described in subdivision 1, paragraph (a), subsequent to 21.18retirement under this chapterfrom the general employees retirement plan, the public 21.19employees police and fire retirement plan, or the local government correctional employees 21.20retirement plan does not increase or decrease the amount of an annuity. The annuitant shall 21.21not make any further contributions to the association'sa defined benefit plan administered 21.22by the association by reason of this subsequent public service.21.23    Sec. 15. Minnesota Statutes 2008, section 353.46, subdivision 2, is amended to read:21.24    Subd. 2. Rights of deferred annuitant. The rightentitlement of a deferred 21.25annuitant or other former member of the general employees retirement plan of the 21.26Public Employees Retirement Association, the Minneapolis Employees Retirement Fund 21.27division, the public employees police and fire retirement plan, or the local government 21.28correctional employees retirement plan to receive an annuity under the law in effect at the 21.29time suchthe person terminated public service is herein preserved; provided, however,.21.30The provisions of section 
         353.71, subdivision 2, as amended by Laws 1973, chapter 75321.31shall, apply to a deferred annuitant or other former member who first begins receiving an 21.32annuity after July 1, 1973.  22.1    Sec. 16. Minnesota Statutes 2008, section 353.46, subdivision 6, is amended to read:22.2    Subd. 6. Computation of benefits for certain coordinated members. Any 22.3coordinated member of the general employees retirement plan of the Public Employees 22.4Retirement Association who prior to, before July 1, 1979, was a member of the former 22.5coordinated program of the former Minneapolis Municipal Employees Retirement 22.6Fund and who prior to, before July 1, 1978, was a member of the basic program of the 22.7Minneapolis Municipal Employees Retirement Fund shall:22.8(1) beis entitled to receive a retirement annuity when otherwise qualified, the 22.9calculation of which shallmust utilize the formula accrual rates specified in section 22.10422A.15, subdivision 1
         , for that portion of credited service which was rendered prior to22.11before July 1, 1978, and the formula accrual rates specified in section 
         353.29, subdivision 22.123
         , for the remainder of credited service, both applied to the average salary as specified 22.13in section 
         353.29, subdivision 2 353.01, subdivision 17a. The formula accrual rates to 22.14be used in calculating the retirement annuity shallmust recognize the service after July 22.151, 1978 as a member of the former coordinated program of the former Minneapolis 22.16Municipal Employees Retirement Fund and after July 1, 1979 as a member of the 22.17general employees retirement plan of the Public Employees Retirement Association as 22.18a continuation of service rendered prior tobefore July 1, 1978. The annuity amount 22.19attributable to service as a member of the basic program of the former Minneapolis 22.20Municipal Employees Retirement Fund shall beis payable byfrom the Minneapolis 22.21Employees Retirement FundMERF division and the annuity amount attributable to all 22.22other service shall beis payable byfrom the general employees retirement fund of the 22.23Public Employees Retirement Association;  .22.24(2) retain eligibility when otherwise qualified for a disability benefit from the 22.25Minneapolis Employees Retirement Fund until July 1, 1982, notwithstanding coverage 22.26by the Public Employees Retirement Association, if the member has or would, without 22.27the transfer of retirement coverage from the basic program of the Minneapolis Municipal 22.28Employees Retirement Fund to the coordinated program of the Minneapolis Municipal 22.29Employees Retirement Fund or from the coordinated program of the Minneapolis 22.30Municipal Employees Retirement Fund to the public employees retirement fund, have 22.31sufficient credited service prior to January 1, 1983, to meet the minimum service 22.32requirements for a disability benefit pursuant to section 422A.18. The disability benefit 22.33amount attributable to service as a member of the basic program of the Minneapolis 22.34Municipal Employees Retirement Fund shall be payable by the Minneapolis Employees 22.35Retirement Fund and the disability benefit amount attributable to all other service shall be 22.36payable by the Public Employees Retirement Association.  23.1    Sec. 17. [353.50] MERF CONSOLIDATION ACCOUNT; ESTABLISHMENT 23.2AND OPERATION.23.3    Subdivision 1.Administrative consolidation.(a) Notwithstanding any provision 23.4of this chapter or chapter 422A to the contrary, the administration of the Minneapolis 23.5Employees Retirement Fund as the MERF division is transferred to the Public Employees 23.6Retirement Association board of trustees. The assets, service credit, and benefit liabilities 23.7of the Minneapolis Employees Retirement Fund transfer to the MERF division account 23.8within the general employees retirement plan of the Public Employees Retirement 23.9Association established by section 353.27, subdivision 1a, on July 1, 2010.23.10(b) The creation of the MERF division must not be construed to alter the Social 23.11Security or Medicare coverage of any member of the former Minneapolis Employees 23.12Retirement Fund on June 29, 2010, while employed in a position covered under the MERF 23.13division of the Public Employees Retirement Association.23.14    Subd. 2.Membership transfer.Effective June 30, 2010, the active, inactive, and 23.15retired members of the Minneapolis Employees Retirement Fund are transferred to the 23.16MERF division administered by the Public Employees Retirement Association and are no 23.17longer members of the Minneapolis Employees Retirement Fund.23.18    Subd. 3.Service credit and benefit liability transfer.(a) All allowable service 23.19credit and salary credit of the members of the  Minneapolis Employees Retirement Fund 23.20as specified in the records of the Minneapolis Employees Retirement Fund through June 23.2130, 2010, are transferred to the MERF division of the Public Employees Retirement 23.22Association and are credited by the MERF division. Annuities or benefits of persons 23.23who are active members of the former Minneapolis Employees Retirement Fund on 23.24June 30, 2010, must be calculated under Minnesota Statutes 2008, sections 422A.11; 23.25422A.12; 422A.13; 422A.14; 422A.15; 422A.151; 422A.155; 422A.156; 422A.16; 23.26422A.17; 422A.18; 422A.19; 422A.20; and 422A.23, but are only eligible for automatic 23.27postretirement adjustments after December 31, 2010, under section 356.415.23.28(b) The liability for the payment of annuities and benefits of the Minneapolis 23.29Employees Retirement Fund retirees and benefit recipients as specified in the records 23.30of the Minneapolis Employees Retirement Fund on June 29, 2010, is transferred to the 23.31MERF division of the Public Employees Retirement Association on June 30, 2010.23.32    Subd. 4.Records transfer.On June 30, 2010, the executive director of the 23.33Minneapolis Employees Retirement Fund shall transfer all records and documents relating 23.34to the Minneapolis Employees Retirement Fund and its benefit plan to the executive 23.35director of the Public Employees Retirement Association. To the extent possible, original 23.36copies of all records and documents must be transferred.24.1    Subd. 5.Transfer of title to assets.On June 30, 2010, legal title to the assets of 24.2the Minneapolis Employees Retirement Fund transfers to the State Board of Investment 24.3and the assets must be invested under section 11A.14, as assets of the MERF division of 24.4the Public Employees Retirement Association.  The MERF division is the successor in 24.5interest to all claims that the former Minneapolis Employees Retirement Fund may have 24.6or may assert against any person and is the successor in interest to all claims which could 24.7have been asserted against the former Minneapolis Employees Retirement Fund, but the 24.8MERF division is not liable for any claim against the former Minneapolis Employees 24.9Retirement Fund, its former governing board, or its former administrative staff acting in a 24.10fiduciary capacity under chapter 356A or under common law, which is founded upon a 24.11claim of breach of fiduciary duty, but where the act or acts constituting the claimed breach 24.12were not undertaken in good faith, the Public Employees Retirement Association may 24.13assert any applicable defense to any claim in any judicial or administrative proceeding 24.14that the former Minneapolis Employees Retirement Fund, its former board, or its 24.15former administrative staff would otherwise have been entitled to assert, and the Public 24.16Employees Retirement Association may assert any applicable defense that it has in its 24.17capacity as a statewide agency.24.18    Subd. 6.Benefits.(a) The annuities and benefits of, or attributable to, retired, 24.19disabled, deferred, or inactive Minneapolis Employees Retirement Fund members 24.20with that status as of June 30, 2010, with the exception of post-December 31, 2010, 24.21postretirement adjustments, which are governed by paragraph (b), as calculated under 24.22Minnesota Statutes 2008, sections 422A.11; 422A.12; 422A.13; 422A.14; 422A.15; 24.23422A.151; 422A.155; 422A.156; 422A.16; 422A.17; 422A.18; 422A.19; 422A.20; and 24.24422A.23, continue in force after the administrative consolidation under this article.24.25(b) After December 31, 2010, annuities and benefits from the MERF division are 24.26eligible for annual automatic postretirement adjustments solely under section 356.415.24.27    Subd. 7.MERF division account contributions.(a) After June 30, 2010, the 24.28member and employer contributions to the MERF division account are governed by this 24.29subdivision.24.30(b) An active member covered by the MERF division must make an employee 24.31contribution of 9.75 percent of the total salary of the member as defined in section 353.01, 24.32subdivision 10. The employee contribution must be made by payroll deduction by the 24.33member's employing unit under section 353.27, subdivision 4, and is subject to the 24.34provisions of section 353.27, subdivisions 7, 7a, 7b, 12, 12a, and 12b.25.1(c) The employer regular contribution to the MERF division account with respect 25.2to an active MERF division member is 9.75 percent of the total salary of the member as 25.3defined in section 353.01, subdivision 10.25.4(d) The employer additional contribution to the MERF division account with respect 25.5to an active member of the MERF division is 2.68 percent of the total salary of the member 25.6as defined in section 353.01, subdivision 10, plus the employing unit's share of $3,900,000 25.7that the employing unit paid or is payable to the former Minneapolis Employees 25.8Retirement Fund under Minnesota Statutes 2008, section 422A.101, subdivision 1a, 2, 25.9or 2a, during calendar year 2009, as was certified by the former executive director of the 25.10former Minneapolis Employees Retirement Fund.25.11(e) Annually after June 30, 2012, the employer supplemental contribution to 25.12the MERF division account by the city of Minneapolis, Special School District No. 1, 25.13Minneapolis, a Minneapolis-owned public utility, improvement, or municipal activity, 25.14Hennepin county, the Metropolitan Council, the Metropolitan Airports Commission, 25.15and the Minnesota State Colleges and Universities system is the amount by which the 25.16total actuarial required contribution determined under section 356.215 by the approved 25.17actuary retained by the Public Employees Retirement Association in the most recent 25.18actuarial valuation of the MERF division and based on a June 30, 2031, amortization 25.19date, after subtracting the contributions under paragraphs (b), (c), and (d), exceeds 25.20$........ Unless the various employing units agree to a different allocation and file that 25.21agreement with the executive director by August 15 for the following calendar year, 25.22each employing unit's share of the total employer supplemental contribution amount 25.23is equal to its percentage share of the total amount allocated under Minnesota Statutes 25.242008, section 422A.101, subdivision 3, payable for calendar year 2009. The initial total 25.25actuarial required contribution after June 30, 2012, must be calculated using the mortality 25.26assumption change recommended on September 30, 2009, for the Minneapolis Employees 25.27Retirement Fund by the approved consulting actuary retained by the Minneapolis 25.28Employees Retirement Fund board.25.29(f) Notwithstanding any provision of paragraph (c), (d), or (e) to the contrary, as of 25.30August 1 annually, if the amount of the retirement annuities and benefits paid from the 25.31MERF division account during the preceding fiscal year, multiplied by the factor of 1.035, 25.32exceeds the market value of the assets of the MERF division account on the preceding 25.33June 30, plus state aid of $9,000,000 or $......., whichever applies, and plus the amounts 25.34payable under paragraphs (b), (c), (d), and (e) during the preceding fiscal year, multiplied 25.35by the factor of 1.035, the balance calculated is a special additional employer contribution. 25.36The special additional employer contribution under this paragraph is payable in addition 26.1to any employer contribution required under paragraphs (c), (d), and (e), and is payable on 26.2or before the next following June 30. The special additional employer contribution under 26.3this paragraph must be allocated between the city of Minneapolis, Special School District 26.4No. 1, Minneapolis, any Minneapolis-owned public utility, improvement, or municipal 26.5activity, the Minnesota State Colleges and Universities system, Hennepin County, the 26.6Metropolitan Council, and the Metropolitan Airports Commission in proportion to their 26.7share of the actuarial accrued liability of the former Minneapolis Employees Retirement 26.8Fund as of July 1, 2009, as calculated by the approved actuary retained under section 26.9356.214 as part of the actuarial valuation prepared as of July 1, 2009, under section 26.10356.215 and the Standards for Actuarial Work adopted by the Legislative Commission on 26.11Pensions and Retirement.26.12(g) The employer contributions under paragraphs (c), (d), and (e) must be paid as 26.13provided in section 353.28.26.14(h) Contributions under this subdivision are subject to the provisions of section 26.15353.27, subdivisions 4, 7, 7a, 7b, 11, 12, 12a, 12b, 13, and 14.26.16    Subd. 7a.Minneapolis Municipal Retirement Association dues.If authorized 26.17by an annuitant or retirement benefit recipient in writing on a form prescribed by the 26.18executive director of the Public Employees Retirement Association, the executive director 26.19shall deduct the dues for the Minneapolis Municipal Retirement Association from the 26.20person's annuity or retirement benefit. This dues deduction authority expires upon the 26.21eventual full consolidation of the MERF account under subdivision 8.26.22    Subd. 8.Eventual full consolidation.(a) Once the fiscal year end market value 26.23of assets of the MERF division account equals or exceeds 80 percent of the actuarial 26.24accrued liability of the MERF division as calculated by the approved actuary retained by 26.25the Public Employees Retirement Association under section 356.215 and the Standards 26.26for Actuarial Work adopted by the Legislative Commission on Pensions and Retirement, 26.27the MERF division must be merged with the general employees retirement plan of the 26.28Public Employees Retirement Association and the MERF division account ceases as a 26.29separate account within the general employees retirement fund of the Public Employees 26.30Retirement Association.26.31(b) If the market value of the MERF division account is less than 100 percent of the 26.32actuarial accrued liability of the MERF division under paragraph (a), the total employer 26.33contribution of employing units referenced in subdivision 7, paragraph (e), for the period 26.34after the full consolidation and June 30, 2031, to amortize on a level annual dollar payment 26.35the remaining unfunded actuarial accrued liability of the former MERF division account 26.36on the full consolidation date by June 30, 2031, shall be calculated by the consulting 27.1actuary retained under section 356.214 using the applicable postretirement interest rate 27.2actuarial assumption for the general employees retirement plan under section 356.215. 27.3The actuarial accrued liability of the MERF division must be calculated using the healthy 27.4retired life mortality assumption applicable to the general employees retirement plan.27.5(c) The merger shall occur as of the first day of the first month after the date on 27.6which the triggering actuarial valuation report is filed with the executive director of the 27.7Legislative Commission on Pensions and Retirement.27.8(d) The executive director of the Public Employees Retirement Association shall 27.9prepare proposed legislation fully implementing the merger and updating the applicable 27.10provisions of chapters 353 and 356 and transmit the proposed legislation to the executive 27.11director of the Legislative Commission on Pensions and Retirement by the following 27.12February 15.27.13    Subd. 9.Merger of former MERF membership groups into PERA-general.27.14If provided for in an agreement between the board of trustees of the Public Employees 27.15Retirement Association and the governing board of an employing unit formerly with 27.16retirement coverage provided for its employees by the former Minneapolis Employees 27.17Retirement Fund, an employing unit may transfer sufficient assets to the general 27.18employees retirement fund to cover the anticipated actuarial accrued liability for its 27.19current or former employees that is in excess of MERF division account assets attributable 27.20to those employees, have those employees be considered full members of the general 27.21employees retirement plan, and be relieved of any further contribution obligation to the 27.22general employees retirement plan for those employees under this section. Any agreement 27.23under this subdivision and any actuarial valuation report related to a merger under this 27.24subdivision must be submitted to the executive director of the Legislative Commission on 27.25Pensions and Retirement for comment prior to the final execution.27.26    Sec. 18. Minnesota Statutes 2008, section 353.64, subdivision 7, is amended to read:27.27    Subd. 7. Pension coverage for certain public safety employees of the27.28Metropolitan Airports Commission. Any person first employed as either a full-time 27.29firefighter or a full-time police officer by the Metropolitan Airports Commission after June 27.3030, 1978, who is not eligible for coverage under the agreement signed between the state 27.31and the secretary of the federal Department of Health and Human Services making the 27.32provisions of the federal Old Age, Survivors, and Disability Insurance Act applicable to 27.33municipal employees because that position is excluded from application pursuant tounder 27.34Title 42, United States Code, Sections 418 (d) (5) (A) and 418 (d) (8) (D) and section 27.35355.07
         , shall not be a member of the Minneapolis Employees Retirement Fund but shall 28.1beis a member of the public employees police and fire fund and shall beis deemed to be a 28.2firefighter or a police officer within the meaning of this section. The Metropolitan Airports 28.3Commission shall make the employer contribution required pursuant tounder section 28.4353.65, subdivision 3
         , with respect to each of its firefighters or police officers covered 28.5by the public employees police and fire fund and shall meet the employers recording and 28.6reporting requirements set forth in section 
         353.65, subdivision 4. 28.7    Sec. 19. Minnesota Statutes 2008, section 356.215, subdivision 8, is amended to read:28.8    Subd. 8. Interest and salary assumptions. (a) The actuarial valuation must use 28.9the applicable following preretirement interest assumption and the applicable following 28.10postretirement interest assumption:

28.1128.1228.13planpreretirement
                  		interest rate
                  		assumptionpostretirement 
                  		interest rate
                  		assumption28.14general state employees retirement plan8.5%6.0%28.15correctional state employees retirement plan8.56.028.16State Patrol retirement plan8.56.028.17legislators retirement plan8.56.028.18elective state officers retirement plan8.56.028.19judges retirement plan8.56.028.20general public employees retirement plan8.56.028.21public employees police and fire retirement plan8.56.028.2228.23local government correctional service retirement 
                  		plan8.56.028.24teachers retirement plan8.56.028.25Minneapolis employees retirement plan6.05.028.26Duluth teachers retirement plan8.58.528.27St. Paul teachers retirement plan8.58.528.28Minneapolis Police Relief Association6.06.028.29Fairmont Police Relief Association5.05.028.30Minneapolis Fire Department Relief Association6.06.028.31Virginia Fire Department Relief Association5.05.028.32Bloomington Fire Department Relief Association6.06.028.3328.34local monthly benefit volunteer firefighters relief 
                  		associations5.05.0

28.35    (b) Before July 1, 2010, the actuarial valuation must use the applicable following 28.36single rate future salary increase assumption, the applicable following modified single 28.37rate future salary increase assumption, or the applicable following graded rate future 28.38salary increase assumption:28.39    (1) single rate future salary increase assumption

29.129.2planfuture salary
                  		increase assumption29.3legislators retirement plan5.0%29.4judges retirement plan4.0 29.5Minneapolis Police Relief Association4.029.6Fairmont Police Relief Association3.529.729.8Minneapolis Fire Department Relief 
                  		Association4.029.9Virginia Fire Department Relief Association3.529.1029.11Bloomington Fire Department Relief 
                  		Association4.0

29.12    (2) modified single rate future salary increase assumption

29.1329.14planfuture salaryincrease assumption29.1529.1629.1729.18Minneapolis employees retirement planthe prior calendar year amount increased first by 1.0198 percent to prior fiscal year date and then increased by 4.0 percent annually for each future year

29.19    (3)(2) select and ultimate future salary increase assumption or graded rate future 29.20salary increase assumption

29.2129.22planfuture salary
                  		increase assumption29.2329.24general state employees retirement planselect calculation and 
                  		assumption A29.25correctional state employees retirement planassumption H29.26State Patrol retirement planassumption G29.2729.28general public employees retirement planselect calculation and 
                  		assumption B29.29public employees police and fire fund retirement planassumption C29.30local government correctional service retirement planassumption G29.31teachers retirement planassumption D29.32Duluth teachers retirement planassumption E29.33St. Paul teachers retirement planassumption F

29.34The select calculation is: during the 29.35designated select period, a designated 29.36percentage rate is multiplied by the result of 29.37the designated integer minus T, where T is the 29.38number of completed years of service, and is 29.39added to the applicable future salary increase 29.40assumption. The designated select period is 29.41five years and the designated integer is five 29.42for the general state employees retirement 30.1plan and the general public employees 30.2retirement plan. The designated select period 30.3is ten years and the designated integer is ten 30.4for all other retirement plans covered by 30.5this clause. The designated percentage rate 30.6is: (1) 0.2 percent for the correctional state 30.7employees retirement plan, the State Patrol 30.8retirement plan, the public employees police 30.9and fire plan, and the local government 30.10correctional service plan; (2) 0.6 percent 30.11for the general state employees retirement 30.12plan and the general public employees 30.13retirement plan; and (3) 0.3 percent for the 30.14teachers retirement plan, the Duluth Teachers 30.15Retirement Fund Association, and the St. 30.16Paul Teachers Retirement Fund Association. 30.17The select calculation for the Duluth Teachers 30.18Retirement Fund Association is 8.00 percent 30.19per year for service years one through seven, 30.207.25 percent per year for service years seven 30.21and eight, and 6.50 percent per year for 30.22service years eight and nine.30.23    The ultimate future salary increase assumption is:

30.24ageABCDEFGH30.25165.95%5.95%11.00%7.70%8.00%6.90%7.7500%7.2500%30.26175.905.9011.007.658.006.907.75007.250030.27185.855.8511.007.608.006.907.75007.250030.28195.805.8011.007.558.006.907.75007.250030.29205.755.4011.005.506.906.907.75007.250030.30215.755.4011.005.506.906.907.14546.645430.31225.755.4010.505.506.906.907.07256.572530.32235.755.4010.005.506.856.857.05446.554430.33245.755.409.505.506.806.807.03636.536330.34255.755.409.005.506.756.757.00006.500030.35265.755.368.705.506.706.707.00006.500030.36275.755.328.405.506.656.657.00006.500030.37285.755.288.105.506.606.607.00006.500030.38295.755.247.805.506.556.557.00006.500030.39305.755.207.505.506.506.507.00006.500031.1315.755.167.305.506.456.457.00006.500031.2325.755.127.105.506.406.407.00006.500031.3335.755.086.905.506.356.357.00006.500031.4345.755.046.705.506.306.307.00006.500031.5355.755.006.505.506.256.257.00006.500031.6365.754.966.305.506.206.206.90196.401931.7375.754.926.105.506.156.156.80746.307431.8385.754.885.905.406.106.106.71256.212531.9395.754.845.705.306.056.056.60546.105431.10405.754.805.505.206.006.006.50006.000031.11415.754.765.405.105.905.956.35405.854031.12425.754.725.305.005.805.906.20875.708731.13435.654.685.204.905.705.856.06225.562231.14445.554.645.104.805.605.805.90485.407831.15455.454.605.004.705.505.755.75005.250031.16465.354.564.954.605.405.705.69405.194031.17475.254.524.904.505.305.655.63755.137531.18485.154.484.854.505.205.605.58225.082231.19495.054.444.804.505.105.555.54045.040431.20504.954.404.754.505.005.505.50005.000031.21514.854.364.754.504.905.455.43844.938431.22524.754.324.754.504.805.405.37764.877631.23534.654.284.754.504.705.355.31674.816731.24544.554.244.754.504.605.305.28264.782631.25554.454.204.754.504.505.255.25004.750031.26564.354.164.754.504.405.205.25004.750031.27574.254.124.754.504.305.155.25004.750031.28584.254.084.754.604.205.105.25004.750031.29594.254.044.754.704.105.055.25004.750031.30604.254.004.754.804.005.005.25004.750031.31614.254.004.754.903.905.005.25004.750031.32624.254.004.755.003.805.005.25004.750031.33634.254.004.755.103.705.005.25004.750031.34644.254.004.755.203.605.005.25004.750031.35654.254.004.755.203.505.005.25004.750031.36664.254.004.755.203.505.005.25004.750031.37674.254.004.755.203.505.005.25004.750031.38684.254.004.755.203.505.005.25004.750031.39694.254.004.755.203.505.005.25004.750031.40704.254.004.755.203.505.005.25004.750031.41714.254.005.20

31.42    (c) Before July 2, 2010, the actuarial valuation must use the applicable following 31.43payroll growth assumption for calculating the amortization requirement for the unfunded 32.1actuarial accrued liability where the amortization retirement is calculated as a level 32.2percentage of an increasing payroll:

32.332.4planpayroll growth
                  		assumption32.5general state employees retirement plan4.50%32.6correctional state employees retirement plan4.5032.7State Patrol retirement plan4.5032.8legislators retirement plan4.5032.9judges retirement plan4.0032.10general public employees retirement plan4.5032.11public employees police and fire retirement plan4.5032.1232.13local government correctional service retirement 
                  		plan4.5032.14teachers retirement plan4.5032.15Duluth teachers retirement plan4.5032.16St. Paul teachers retirement plan5.00

32.17    (d) After July 1, 2010, the assumptions set forth in paragraphs (b) and (c) continue to 32.18apply, unless a different salary assumption or a different payroll increase assumption:32.19    (1) has been proposed by the governing board of the applicable retirement plan;32.20    (2) is accompanied by the concurring recommendation of the actuary retained under 32.21section 
         356.214, subdivision 1, if applicable, or by the approved actuary preparing the 32.22most recent actuarial valuation report if section 
         356.214 does not apply; and32.23    (3) has been approved or deemed approved under subdivision 18.32.24    Sec. 20. Minnesota Statutes 2009 Supplement, section 356.215, subdivision 11, 32.25is amended to read:32.26    Subd. 11. Amortization contributions. (a) In addition to the exhibit indicating 32.27the level normal cost, the actuarial valuation of the retirement plan must contain an 32.28exhibit for financial reporting purposes indicating the additional annual contribution 32.29sufficient to amortize the unfunded actuarial accrued liability and must contain an exhibit 32.30for contribution determination purposes indicating the additional contribution sufficient 32.31to amortize the unfunded actuarial accrued liability. For the retirement plans listed in 32.32subdivision 8, paragraph (c), but excluding the MERF division of the Public Employees 32.33Retirement Association, the additional contribution must be calculated on a level 32.34percentage of covered payroll basis by the established date for full funding in effect when 32.35the valuation is prepared, assuming annual payroll growth at the applicable percentage 32.36rate set forth in subdivision 8, paragraph (c). For all other retirement plans and for the 32.37MERF division of the Public Employees Retirement Association, the additional annual 32.38contribution must be calculated on a level annual dollar amount basis. 33.1    (b) For any retirement plan other than the Minneapolis Employees Retirement Fund, 33.2the general employeesa retirement plan of the Public Employees Retirement Association, 33.3and the St. Paul Teachers Retirement Fund Association governed by paragraph (d), (e), 33.4(f), (g), (h), (i), or (j), if there has not been a change in the actuarial assumptions used 33.5for calculating the actuarial accrued liability of the fund, a change in the benefit plan 33.6governing annuities and benefits payable from the fund, a change in the actuarial cost 33.7method used in calculating the actuarial accrued liability of all or a portion of the fund, or 33.8a combination of the three, which change or changes by itself or by themselves without 33.9inclusion of any other items of increase or decrease produce a net increase in the unfunded 33.10actuarial accrued liability of the fund, the established date for full funding is the first 33.11actuarial valuation date occurring after June 1, 2020.33.12    (c) For any retirement plan other than the Minneapolis Employees Retirement 33.13Fund and the general employees retirement plan of the Public Employees Retirement 33.14Association, if there has been a change in any or all of the actuarial assumptions used 33.15for calculating the actuarial accrued liability of the fund, a change in the benefit plan 33.16governing annuities and benefits payable from the fund, a change in the actuarial cost 33.17method used in calculating the actuarial accrued liability of all or a portion of the fund, 33.18or a combination of the three, and the change or changes, by itself or by themselves and 33.19without inclusion of any other items of increase or decrease, produce a net increase in the 33.20unfunded actuarial accrued liability in the fund, the established date for full funding must 33.21be determined using the following procedure:33.22    (i) the unfunded actuarial accrued liability of the fund must be determined in 33.23accordance with the plan provisions governing annuities and retirement benefits and the 33.24actuarial assumptions in effect before an applicable change;33.25    (ii) the level annual dollar contribution or level percentage, whichever is applicable, 33.26needed to amortize the unfunded actuarial accrued liability amount determined under item 33.27(i) by the established date for full funding in effect before the change must be calculated 33.28using the interest assumption specified in subdivision 8 in effect before the change;33.29    (iii) the unfunded actuarial accrued liability of the fund must be determined in 33.30accordance with any new plan provisions governing annuities and benefits payable from 33.31the fund and any new actuarial assumptions and the remaining plan provisions governing 33.32annuities and benefits payable from the fund and actuarial assumptions in effect before 33.33the change;33.34    (iv) the level annual dollar contribution or level percentage, whichever is applicable, 33.35needed to amortize the difference between the unfunded actuarial accrued liability amount 33.36calculated under item (i) and the unfunded actuarial accrued liability amount calculated 34.1under item (iii) over a period of 30 years from the end of the plan year in which the 34.2applicable change is effective must be calculated using the applicable interest assumption 34.3specified in subdivision 8 in effect after any applicable change;34.4    (v) the level annual dollar or level percentage amortization contribution under item 34.5(iv) must be added to the level annual dollar amortization contribution or level percentage 34.6calculated under item (ii);34.7    (vi) the period in which the unfunded actuarial accrued liability amount determined 34.8in item (iii) is amortized by the total level annual dollar or level percentage amortization 34.9contribution computed under item (v) must be calculated using the interest assumption 34.10specified in subdivision 8 in effect after any applicable change, rounded to the nearest 34.11integral number of years, but not to exceed 30 years from the end of the plan year in 34.12which the determination of the established date for full funding using the procedure set 34.13forth in this clause is made and not to be less than the period of years beginning in the 34.14plan year in which the determination of the established date for full funding using the 34.15procedure set forth in this clause is made and ending by the date for full funding in effect 34.16before the change; and34.17    (vii) the period determined under item (vi) must be added to the date as of which 34.18the actuarial valuation was prepared and the date obtained is the new established date 34.19for full funding.34.20    (d) For the Minneapolis Employees Retirement Fund MERF division of the Public 34.21Employees Retirement Association, the established date for full funding is June 30, 202034.222031.34.23    (e) For the general employees retirement plan of the Public Employees Retirement 34.24Association, the established date for full funding is June 30, 2031.34.25    (f) For the Teachers Retirement Association, the established date for full funding is 34.26June 30, 2037.34.27    (g) For the correctional state employees retirement plan of the Minnesota State 34.28Retirement System, the established date for full funding is June 30, 2038.34.29    (h) For the judges retirement plan, the established date for full funding is June 34.3030, 2038.34.31    (i) For the public employees police and fire retirement plan, the established date 34.32for full funding is June 30, 2038.34.33    (j) For the St. Paul Teachers Retirement Fund Association, the established date for 34.34full funding is June 30 of the 25th year from the valuation date. In addition to other 34.35requirements of this chapter, the annual actuarial valuation shall contain an exhibit 34.36indicating the funded ratio and the deficiency or sufficiency in annual contributions when 35.1comparing liabilities to the market value of the assets of the fund as of the close of the 35.2most recent fiscal year.35.3    (k) For the retirement plans for which the annual actuarial valuation indicates an 35.4excess of valuation assets over the actuarial accrued liability, the valuation assets in 35.5excess of the actuarial accrued liability must be recognized as a reduction in the current 35.6contribution requirements by an amount equal to the amortization of the excess expressed 35.7as a level percentage of pay over a 30-year period beginning anew with each annual 35.8actuarial valuation of the plan.35.9    Sec. 21. Minnesota Statutes 2008, section 422A.101, subdivision 3, is amended to read:35.10    Subd. 3. State contributions. (a) Subject to the limitation set forth in paragraph 35.11(c), the state shall pay to the MERF division account of the Public Employees Retirement 35.12Association with respect to the former Minneapolis Employees Retirement Fund annually 35.13an amount equal to the amount calculated under paragraph (b).35.14    (b) The payment amount is an amount equal to the financial requirements of the 35.15Minneapolis Employees Retirement FundMERF division of the Public Employees 35.16Retirement Association reported in the actuarial valuation of the fundgeneral employees 35.17retirement plan of the Public Employees Retirement Association prepared by the actuary 35.18retained under section 
         356.214 consistent with section 
         356.215 for the most recent year 35.19but based on a target date for full amortization of the unfunded actuarial accrued liabilities 35.20by June 30, 2020 2031, less the amount of employee contributions required under section 35.21422A.10 353.50, subdivision 7, paragraph (b), and the amount of employer contributions 35.22required under subdivisions 1a, 2, and 2a section 353.50, subdivision 7, paragraphs (c) 35.23and (d). Payments shallmust be made September 15 annually. 35.24    (c) The annual state contribution under this subdivision may not exceed $9,000,000, 35.25plus the cost of the annual supplemental benefit determined under Minnesota Statutes 35.262008, section 
         356.43, through June 30, 2012, and may not exceed $9,000,000, plus the 35.27cost of the annual supplemental benefit determined under Minnesota Statutes 2008, section 35.28356.43, plus $....... annually after June 30, 2012, and until June 30, 2031. 35.29    (d) Annually and after June 30, 2012, if the amount determined under paragraph 35.30(b) exceeds $9,000,000 the applicable maximum amount specified in paragraph (c), 35.31the excess must be allocated to and paid to the fund by the employers identified in 35.32Minnesota Statutes 2008, section 422A.101, subdivisions 1a and, 2, and 2a other than 35.33units of metropolitan government. Each employer's share of the excess is proportionate 35.34to the employer's share of the fund's unfunded actuarial accrued liability as disclosed in 35.35the annual actuarial valuation prepared by the actuary retained under section 
         356.21436.1compared to the total unfunded actuarial accrued liability as of July 1, 2009, attributed 36.2to all employers identified in Minnesota Statutes 2008, section 422A.101, subdivisions 36.31a and 2, other than units of metropolitan government. Payments must be made in equal 36.4installments as set forth in paragraph (b).36.5(e) State contributions under this section end on September 15, 2031, or on 36.6September 1 following the first date on which the current assets of the MERF division 36.7of the Public Employees Retirement Association equal or exceed the actuarial accrued 36.8liability of the MERF division of the Public Employees Retirement Association, 36.9whichever occurs earlier.36.10    Sec. 22. Minnesota Statutes 2008, section 422A.26, is amended to read:36.11422A.26 COVERAGE BY THE PUBLIC EMPLOYEES RETIREMENT 36.12ASSOCIATION.36.13Notwithstanding section 422A.09, or any other law to the contrary, any person 36.14whose employment by, or assumption of a position as an appointed or elected officer 36.15of, the city of Minneapolis, any of the boards, departments, or commissions operated 36.16as a department of the city of Minneapolis or independently if financed in whole or in 36.17part by funds of the city of Minneapolis, the Metropolitan Airports Commission, the 36.18former Minneapolis Employees Retirement Fund, or Special School District Number 1 if 36.19the person is not a member of the Minneapolis Teachers Retirement Fund Association 36.20by virtue of that employment or position, initially commences on or after July 1, 1979 36.21shall beis a member of the general employees retirement plan of the Public Employees 36.22Retirement Association unless excluded from membership pursuant tounder section 36.23353.01, subdivision 2b
         . In no event shall there be any new members of the contributing 36.24class of the Minneapolis employees fund on or after July 1, 1979.  36.25    Sec. 23. JULY 1, 2010, MERF DIVISION ACTUARIAL VALUATION 36.26ASSUMPTIONS.36.27The approved actuary retained by the Minneapolis Employees Retirement Fund shall 36.28compare the actuarial assumptions to be used for the July 1, 2010, actuarial valuation of 36.29the general employees retirement plan of the Public Employees Retirement Association 36.30with the actuarial assumptions used to prepare the July 1, 2009, actuarial valuation of the 36.31Minneapolis Employees Retirement Fund and, on or before July 1, 2010, shall recommend 36.32to the approved actuary retained by the Public Employees Retirement Association and to 36.33the Legislative Commission on Pensions and Retirement the actuarial assumptions that 36.34the actuary believes would be appropriate for the MERF division portion of the actuarial 37.1valuation of the general employees retirement plan of the Public Employees Retirement 37.2Association. Any actuarial assumption changes related to the MERF division must be 37.3approved under Minnesota Statutes, section 356.215, subdivision 18.37.4    Sec. 24. MINNEAPOLIS MUNICIPAL RETIREMENT ASSOCIATION.37.5(a) The administrative consolidation of the former Minneapolis Employees 37.6Retirement Fund into the general employees retirement plan of the Public Employees 37.7Retirement Association and the merger of the MERF division of the Public Employees 37.8Retirement Association into the general employees retirement plan of the Public 37.9Employees Retirement Association does not affect the function of the Minneapolis 37.10Municipal Retirement Association, a nonprofit corporation, to monitor the administration 37.11of the retirement coverage for former members of the former Minneapolis Employees 37.12Retirement Fund.37.13(b) Nothing in this article entitles the Minneapolis Municipal Retirement Association 37.14to receive any revenue derived from taxes or obligates the Public Employees Retirement 37.15Association to undertake any special duties with respect to the corporation.37.16    Sec. 25. TRANSFER OF MERF EMPLOYEES.37.17(a) Unless the employee elects the severance pay option under paragraph (c), 37.18full-time employees of the Minneapolis Employees Retirement Fund first employed 37.19before June 30, 2008, and employed full time by the Minneapolis Employees Retirement 37.20Fund on June 29, 2010, with the employment title of benefits coordinator, are transferred 37.21to employment by the city of Minneapolis on July 1, 2010. The chief human relations 37.22official of the city of Minneapolis shall place the transferred employee in an appropriate 37.23employment position based on the employee's education and employment experience. The 37.24transferred employee must have their accumulated, but unused, vacation and sick leave 37.25balances as of June 30, 2010, posted to the individual accounts with the new employer. 37.26The transferred employees must receive length of service credit for time served with the 37.27Minneapolis Employees Retirement Fund. The transferred employee must be given the 37.28opportunity as of the date of transfer to be covered for all health and other insurance 37.29benefits offered by the new employer. Upon the transfer of the employee, the Minneapolis 37.30Employees Retirement Fund shall transfer assets to the city of Minneapolis equal to the 37.31present value of any accumulated unused vacation or sick leave balances as of the date 37.32of transfer.37.33(b) Unless the employee elects the severance pay option under paragraph (c), 37.34full-time employees of the Minneapolis Employees Retirement Fund first employed before 38.1June 30, 2008, and employed full time by the Minneapolis Employees Retirement Fund 38.2on June 29, 2010, with the employment title of accounting manager or accountant II are 38.3transferred to employment by the Public Employees Retirement Association on July 1, 38.42010. The chief human relations official of the Public Employees Retirement Association 38.5shall place the transferred employee in an appropriate employment position based on the 38.6employee's education and employment experience. The transferred employee must have 38.7their accumulated, but unused, vacation and sick leave balances as of June 30, 2010, 38.8posted to the individual accounts with the new employer. The transferred employees 38.9must receive length of service credit for time served with the Minneapolis Employees 38.10Retirement Fund. The transferred employee must be given the opportunity as of the 38.11date of transfer to be covered for all health and other insurance benefits offered by the 38.12new employer. Upon the transfer of the employee, the executive director of the Public 38.13Employees Retirement Association shall deduct from any assets transferred under section 38.14353.50 an amount equal to the present value of any accumulated unused vacation or sick 38.15leave balances as of the date of transfer.38.16(c) An employee covered by paragraph (a) or (b) who elects not to transfer to the 38.17new employer unit is granted severance pay in an amount equivalent to one year of salary 38.18based on the last annual salary rate received by the employee. The election must be 38.19made prior to June 30, 2010, and is irrevocable. The severance pay is payable from the 38.20Minneapolis Employees Retirement Fund on June 30, 2010.38.21    Sec. 26. REVISOR'S INSTRUCTION.38.22In the next and future editions of Minnesota Statutes, the revisor of statutes shall 38.23renumber Minnesota Statutes, section 422A.101, subdivision 3, as Minnesota Statutes, 38.24section 353.505, and shall renumber Minnesota Statutes, section 422A.26, as Minnesota 38.25Statutes, section 353.855. The revisor of statutes shall make conforming changes in 38.26Minnesota Statutes and Minnesota Rules consistent with the renumbering.38.27    Sec. 27.  REPEALER.38.28Minnesota Statutes 2008, sections 13.63, subdivision 1; 69.011, subdivision 2a; 38.29356.43; 422A.01, subdivisions 1, 2, 3, 4, 4a, 5, 6, 7, 8, 9, 10, 11, 12, 13a, 17, and 18; 38.30422A.02; 422A.03; 422A.04; 422A.05, subdivisions 1, 2a, 2b, 2c, 2d, 2e, 2f, 5, 6, 38.31and 8; 422A.06, subdivisions 1, 2, 3, 5, 6, and 7; 422A.08, subdivision 1; 422A.09; 38.32422A.10; 422A.101, subdivisions 1, 1a, 2, and 2a; 422A.11; 422A.12; 422A.13; 422A.14, 38.33subdivision 1; 422A.15; 422A.151; 422A.155; 422A.156; 422A.16, subdivisions 1, 2, 3, 38.344, 5, 6, 7, 8, 9, and 10; 422A.17; 422A.18, subdivisions 1, 2, 3, 4, 5, and 7; 422A.19; 39.1422A.20; 422A.21; 422A.22, subdivisions 1, 3, 4, and 6; 422A.23, subdivisions 1, 2, 5, 6, 39.27, 8, 9, 10, 11, and 12; 422A.231; 422A.24; and 422A.25, are repealed.39.3Minnesota Statutes 2009 Supplement, sections 422A.06, subdivision 8; and 39.4422A.08, subdivision 5, are repealed.39.5    Sec. 28. EFFECTIVE DATE.39.6Sections 1 to 27 are effective June 30, 2010.39.7ARTICLE 239.8CONFORMING CHANGES39.9    Section 1. Minnesota Statutes 2009 Supplement, section 6.67, is amended to read:39.106.67 PUBLIC ACCOUNTANTS; REPORT OF POSSIBLE MISCONDUCT.39.11    Whenever a public accountant in the course of auditing the books and affairs of a 39.12political subdivision or a local public pension plan governed by section 
         69.77, sections 39.1369.771
          to 
         69.775, or chapter 354A, 422A, 423B, 423C, or 424A, discovers evidence 39.14pointing to nonfeasance, misfeasance, or malfeasance, on the part of an officer or 39.15employee in the conduct of duties and affairs, the public accountant shall promptly make 39.16a report of such discovery to the state auditor and the county attorney of the county in 39.17which the governmental unit is situated and the public accountant shall also furnish a 39.18copy of the report of audit upon completion to said officers. The county attorney shall 39.19act on such report in the same manner as required by law for reports made to the county 39.20attorney by the state auditor.39.21    Sec. 2. Minnesota Statutes 2008, section 11A.23, subdivision 4, is amended to read:39.22    Subd. 4. Covered retirement funds and plans. The provisions of this section shall 39.23apply to the following retirement funds and plans:39.24(1) Board of Trustees of the Minnesota State Colleges and Universities supplemental 39.25retirement plan established under chapter 354C;39.26(2) state employees retirement fund established pursuant to chapter 352;39.27(3) correctional employees retirement plan established pursuant to chapter 352;39.28(4) State Patrol retirement fund established pursuant to chapter 352B;39.29(5) unclassified employees retirement plan established pursuant to chapter 352D;39.30(6) public general employees retirement fund established pursuant to chapter 353;39.31(7) public employees police and fire fund established pursuant to chapter 353;39.32(8) teachers' retirement fund established pursuant to chapter 354;40.1(9) judges' retirement fund established pursuant to chapter 490; and40.2(10) any other funds required by law to be invested by the board.40.3    Sec. 3. Minnesota Statutes 2008, section 13D.01, subdivision 1, is amended to read:40.4    Subdivision 1. In executive branch, local government. All meetings, including 40.5executive sessions, must be open to the public40.6(a) of a state40.7(1) agency,40.8(2) board,40.9(3) commission, or40.10(4) department,40.11when required or permitted by law to transact public business in a meeting;40.12(b) of the governing body of a40.13(1) school district however organized,40.14(2) unorganized territory,40.15(3) county,40.16(4) statutory or home rule charter city,40.17(5) town, or40.18(6) other public body;40.19(c) of any40.20(1) committee,40.21(2) subcommittee,40.22(3) board,40.23(4) department, or40.24(5) commission,40.25of a public body; and40.26(d) of the governing body or a committee of:40.27(1) a statewide public pension plan defined in section 
         356A.01, subdivision 24; or  40.28(2) a local public pension plan governed by section 
         69.77, sections 
         69.771 to 
         69.775, 40.29or chapter 354A, 422A, or 423B.  40.30    Sec. 4. Minnesota Statutes 2008, section 43A.17, subdivision 9, is amended to read:40.31    Subd. 9. Political subdivision compensation limit. (a) The salary and the value of 40.32all other forms of compensation of a person employed by a political subdivision of this 40.33state, excluding a school district, or employed under section 422A.03 may not exceed 110 40.34percent of the salary of the governor as set under section 
         15A.082, except as provided 41.1in this subdivision. For purposes of this subdivision, "political subdivision of this state" 41.2includes a statutory or home rule charter city, county, town, metropolitan or regional 41.3agency, or other political subdivision, but does not include a hospital, clinic, or health 41.4maintenance organization owned by such a governmental unit.41.5(b) Beginning in 2006, the limit in paragraph (a) shall be adjusted annually in 41.6January. The limit shall equal the limit for the prior year increased by the percentage 41.7increase, if any, in the Consumer Price Index for all-urban consumers from October of the 41.8second prior year to October of the immediately prior year.41.9(c) Deferred compensation and payroll allocations to purchase an individual annuity 41.10contract for an employee are included in determining the employee's salary. Other forms 41.11of compensation which shall be included to determine an employee's total compensation 41.12are all other direct and indirect items of compensation which are not specifically excluded 41.13by this subdivision. Other forms of compensation which shall not be included in a 41.14determination of an employee's total compensation for the purposes of this subdivision are:41.15(1) employee benefits that are also provided for the majority of all other full-time 41.16employees of the political subdivision, vacation and sick leave allowances, health and 41.17dental insurance, disability insurance, term life insurance, and pension benefits or like 41.18benefits the cost of which is borne by the employee or which is not subject to tax as 41.19income under the Internal Revenue Code of 1986;41.20(2) dues paid to organizations that are of a civic, professional, educational, or 41.21governmental nature; and41.22(3) reimbursement for actual expenses incurred by the employee which the 41.23governing body determines to be directly related to the performance of job responsibilities, 41.24including any relocation expenses paid during the initial year of employment.41.25The value of other forms of compensation shall be the annual cost to the political 41.26subdivision for the provision of the compensation.41.27(d) The salary of a medical doctor or doctor of osteopathy occupying a position that 41.28the governing body of the political subdivision has determined requires an M.D. or D.O. 41.29degree is excluded from the limitation in this subdivision.41.30(e) The commissioner may increase the limitation in this subdivision for a position 41.31that the commissioner has determined requires special expertise necessitating a higher 41.32salary to attract or retain a qualified person. The commissioner shall review each 41.33proposed increase giving due consideration to salary rates paid to other persons with 41.34similar responsibilities in the state and nation. The commissioner may not increase the 41.35limitation until the commissioner has presented the proposed increase to the Legislative 41.36Coordinating Commission and received the commission's recommendation on it. The 42.1recommendation is advisory only. If the commission does not give its recommendation 42.2on a proposed increase within 30 days from its receipt of the proposal, the commission 42.3is deemed to have made no recommendation. If the commissioner grants or granted an 42.4increase under this paragraph, the new limitation shall be adjusted beginning in August 42.52005 and in each subsequent calendar year in January by the percentage increase equal to 42.6the percentage increase, if any, in the Consumer Price Index for all-urban consumers from 42.7October of the second prior year to October of the immediately prior year.42.8    Sec. 5. Minnesota Statutes 2008, section 43A.316, subdivision 8, is amended to read:42.9    Subd. 8. Continuation of coverage. (a) A former employee of an employer 42.10participating in the program who is receiving a public pension disability benefit or an 42.11annuity or has met the age and service requirements necessary to receive an annuity under 42.12chapter 353, 353C, 354, 354A, 356, 422A, 423, 423A, or 424, or Minnesota Statutes 42.132008, chapter 422A, and the former employee's dependents, are eligible to participate in 42.14the program. This participation is at the person's expense unless a collective bargaining 42.15agreement or personnel policy provides otherwise. Premiums for these participants must 42.16be established by the commissioner.42.17The commissioner may provide policy exclusions for preexisting conditions 42.18only when there is a break in coverage between a participant's coverage under the 42.19employment-based group insurance program and the participant's coverage under this 42.20section. An employer shall notify an employee of the option to participate under this 42.21paragraph no later than the effective date of retirement. The retired employee or the 42.22employer of a participating group on behalf of a current or retired employee shall notify 42.23the commissioner within 30 days of the effective date of retirement of intent to participate 42.24in the program according to the rules established by the commissioner.42.25(b) The spouse of a deceased employee or former employee may purchase the 42.26benefits provided at premiums established by the commissioner if the spouse was a 42.27dependent under the employee's or former employee's coverage under this section at the 42.28time of the death. The spouse remains eligible to participate in the program as long as 42.29the group that included the deceased employee or former employee participates in the 42.30program. Coverage under this clause must be coordinated with relevant insurance benefits 42.31provided through the federally sponsored Medicare program.42.32(c) The program benefits must continue in the event of strike permitted by section 42.33179A.18
         , if the exclusive representative chooses to have coverage continue and the 42.34employee pays the total monthly premiums when due. 42.35(d) A participant who discontinues coverage may not reenroll.43.1Persons participating under these paragraphs shall make appropriate premium 43.2payments in the time and manner established by the commissioner.43.3    Sec. 6. Minnesota Statutes 2009 Supplement, section 69.011, subdivision 1, is 43.4amended to read:43.5    Subdivision 1. Definitions. Unless the language or context clearly indicates that 43.6a different meaning is intended, the following words and terms, for the purposes of this 43.7chapter and chapters 423, 423A, 424 and 424A, have the meanings ascribed to them:43.8    (a) "Commissioner" means the commissioner of revenue.43.9    (b) "Municipality" means:43.10    (1) a home rule charter or statutory city;43.11    (2) an organized town;43.12    (3) a park district subject to chapter 398;43.13    (4) the University of Minnesota;43.14    (5) for purposes of the fire state aid program only, an American Indian tribal 43.15government entity located within a federally recognized American Indian reservation;43.16    (6) for purposes of the police state aid program only, an American Indian tribal 43.17government with a tribal police department which exercises state arrest powers under 43.18section 
         626.90, 
         626.91, 
         626.92, or 
         626.93; 43.19    (7) for purposes of the police state aid program only, the Metropolitan Airports 43.20Commission with respect to peace officers covered under chapter 422A; and43.21    (8) for purposes of the police state aid program only, the Department of Natural 43.22Resources and the Department of Public Safety with respect to peace officers covered 43.23under chapter 352B.43.24    (c) "Minnesota Firetown Premium Report" means a form prescribed by the 43.25commissioner containing space for reporting by insurers of fire, lightning, sprinkler 43.26leakage and extended coverage premiums received upon risks located or to be performed 43.27in this state less return premiums and dividends.43.28    (d) "Firetown" means the area serviced by any municipality having a qualified fire 43.29department or a qualified incorporated fire department having a subsidiary volunteer 43.30firefighters' relief association.43.31    (e) "Market value" means latest available market value of all property in a taxing 43.32jurisdiction, whether the property is subject to taxation, or exempt from ad valorem 43.33taxation obtained from information which appears on abstracts filed with the commissioner 43.34of revenue or equalized by the State Board of Equalization.44.1    (f) "Minnesota Aid to Police Premium Report" means a form prescribed by the 44.2commissioner for reporting by each fire and casualty insurer of all premiums received 44.3upon direct business received by it in this state, or by its agents for it, in cash or otherwise, 44.4during the preceding calendar year, with reference to insurance written for insuring against 44.5the perils contained in auto insurance coverages as reported in the Minnesota business 44.6schedule of the annual financial statement which each insurer is required to file with 44.7the commissioner in accordance with the governing laws or rules less return premiums 44.8and dividends.44.9    (g) "Peace officer" means any person:44.10    (1) whose primary source of income derived from wages is from direct employment 44.11by a municipality or county as a law enforcement officer on a full-time basis of not less 44.12than 30 hours per week;44.13    (2) who has been employed for a minimum of six months prior to December 31 44.14preceding the date of the current year's certification under subdivision 2, clause (b);44.15    (3) who is sworn to enforce the general criminal laws of the state and local 44.16ordinances;44.17    (4) who is licensed by the Peace Officers Standards and Training Board and is 44.18authorized to arrest with a warrant; and44.19    (5) who is a member of a local police relief association to which section 69.77 44.20applies the Minneapolis Police Relief Association, the State Patrol retirement plan, or the 44.21public employees police and fire fund, or the Minneapolis Employees Retirement Fund. 44.22    (h) "Full-time equivalent number of peace officers providing contract service" means 44.23the integral or fractional number of peace officers which would be necessary to provide 44.24the contract service if all peace officers providing service were employed on a full-time 44.25basis as defined by the employing unit and the municipality receiving the contract service.44.26    (i) "Retirement benefits other than a service pension" means any disbursement 44.27authorized under section 
         424A.05, subdivision 3, clauses (2) and (3). 44.28    (j) "Municipal clerk, municipal clerk-treasurer, or county auditor" means the person 44.29who was elected or appointed to the specified position or, in the absence of the person, 44.30another person who is designated by the applicable governing body. In a park district, 44.31the clerk is the secretary of the board of park district commissioners. In the case of the 44.32University of Minnesota, the clerk is that official designated by the Board of Regents. 44.33For the Metropolitan Airports Commission, the clerk is the person designated by the 44.34commission. For the Department of Natural Resources or the Department of Public Safety, 44.35the clerk is the respective commissioner. For a tribal police department which exercises 45.1state arrest powers under section 
         626.90, 
         626.91, 
         626.92, or 
         626.93, the clerk is the person 45.2designated by the applicable American Indian tribal government. 45.3(k) "Voluntary statewide lump-sum volunteer firefighter retirement plan" means the 45.4retirement plan established by chapter 353G.45.5    Sec. 7. Minnesota Statutes 2008, section 69.021, subdivision 10, is amended to read:45.6    Subd. 10. Reduction in police state aid apportionment. (a) The commissioner of 45.7revenue shall reduce the apportionment of police state aid under subdivisions 5, paragraph 45.8(b), 6, and 7a, for eligible employer units by any excess police state aid.45.9(b)  "Excess police state aid" is:45.10(1) for counties and for municipalities in which police retirement coverage is 45.11provided wholly by the public employees police and fire fund and all police officers are 45.12members of the plan governed by sections 
         353.63 to 
         353.657, the amount in excess of the 45.13employer's total prior calendar year obligation as defined in paragraph (c), as certified by 45.14the executive director of the Public Employees Retirement Association; 45.15(2) for municipalities in which police retirement coverage is provided in part by the 45.16public employees police and fire fund governed by sections 
         353.63 to 
         353.657 and in 45.17part by a local police consolidation account governed by chapter 353A, and established 45.18before March 2, 1999, for which the municipality declined merger under section 
         353.665, 45.19subdivision 1
         , or established after March 1, 1999, the amount in excess of the employer's 45.20total prior calendar year obligation as defined in paragraph (c), plus the amount of the 45.21employer's total prior calendar year obligation under section 
         353A.09, subdivision 5, 45.22paragraphs (a) and (b), as certified by the executive director of the Public Employees 45.23Retirement Association; 45.24(3)  for municipalities in which police retirement coverage is provided by the public 45.25employees police and fire plan governed by sections 
         353.63 to 
         353.657, in which police 45.26retirement coverage was provided by a police consolidation account under chapter 45.27353A before July 1, 1999, and for which the municipality has an additional municipal 45.28contribution under section 
         353.665, subdivision 8, paragraph (b), the amount in excess of 45.29the employer's total prior calendar year obligation as defined in paragraph (c), plus the 45.30amount of any additional municipal contribution under section 
         353.665, subdivision 8, 45.31paragraph (b), until the year 2010, as certified by the executive director of the Public 45.32Employees Retirement Association; 45.33(4) for municipalities in which police retirement coverage is provided in part by the 45.34public employees police and fire fund governed by sections 
         353.63 to 
         353.657 and in part 45.35by a local police relief association governed by sections 
         69.77 and 
         423A.01, the amount 46.1in excess of the employer's total prior calendar year obligation as defined in paragraph 46.2(c), as certified by the executive director of the public employees retirement association, 46.3plus the amount of the financial requirements of the relief association certified to the 46.4applicable municipality during the prior calendar year under section 
         69.77, subdivisions 4 46.5and 5
         , reduced by the amount of member contributions deducted from the covered salary 46.6of the relief association during the prior calendar year under section 
         69.77, subdivision 3, 46.7as certified by the chief administrative officer of the applicable municipality; 46.8(5) for the Metropolitan Airports Commission, if there are police officers hired 46.9before July 1, 1978, with retirement coverage by the Minneapolis Employees Retirement 46.10Fund remaining, the amount in excess of the commission's total prior calendar year 46.11obligation as defined in paragraph (c), as certified by the executive director of the Public 46.12Employees Retirement Association, plus the amount determined by expressing the 46.13commission's total prior calendar year contribution to the Minneapolis Employees 46.14Retirement Fund under section 422A.101, subdivisions 2 and 2a, as a percentage of 46.15the commission's total prior calendar year covered payroll for commission employees 46.16covered by the Minneapolis Employees Retirement Fund and applying that percentage 46.17to the commission's total prior calendar year covered payroll for commission police 46.18officers covered by the Minneapolis Employees Retirement Fund, as certified by the chief 46.19administrative officer of the Metropolitan Airports Commission; and 46.20(6) for the Department of Natural Resources and for the Department of Public 46.21Safety, the amount in excess of the employer's total prior calendar year obligation under 46.22section 
         352B.02, subdivision 1c, for plan members who are peace officers under section 46.2369.011, subdivision 1
         , clause (g), as certified by the executive director of the Minnesota 46.24State Retirement System. 46.25(c) The employer's total prior calendar year obligation with respect to the public 46.26employees police and fire plan is the total prior calendar year obligation under section 46.27353.65, subdivision 3
         , for police officers as defined in section 
         353.64, subdivision 2, 46.28and the actual total prior calendar year obligation under section 
         353.65, subdivision 3, 46.29for firefighters, as defined in section 
         353.64, subdivision 3, but not to exceed for those 46.30firefighters the applicable following amounts: 

46.31MunicipalityMaximum Amount46.32Albert Lea$54,157.0146.33Anoka10,399.3146.34Apple Valley5,442.4446.35Austin49,864.7346.36Bemidji27,671.3846.37Brooklyn Center6,605.9247.1Brooklyn Park24,002.2647.2Burnsville15,956.0047.3Cloquet4,260.4947.4Coon Rapids39,920.0047.5Cottage Grove8,588.4847.6Crystal5,855.0047.7East Grand Forks51,009.8847.8Edina32,251.0047.9Elk River5,216.5547.10Ely13,584.1647.11Eveleth16,288.2747.12Fergus Falls6,742.0047.13Fridley33,420.6447.14Golden Valley11,744.6147.15Hastings16,561.0047.16Hopkins4,324.2347.17International Falls14,400.6947.18Lakeville782.3547.19Lino Lakes5,324.0047.20Little Falls7,889.4147.21Maple Grove6,707.5447.22Maplewood8,476.6947.23Minnetonka10,403.0047.24Montevideo1,307.6647.25Moorhead68,069.2647.26New Hope6,739.7247.27North St. Paul4,241.1447.28Northfield770.6347.29Owatonna37,292.6747.30Plymouth6,754.7147.31Red Wing3,504.0147.32Richfield53,757.9647.33RosemontRosemount1,712.5547.34Roseville9,854.5147.35St. Anthony33,055.0047.36St. Louis Park53,643.1147.37Thief River Falls28,365.0447.38Virginia31,164.4647.39Waseca11,135.1747.40West St. Paul15,707.2047.41White Bear Lake6,521.0447.42Woodbury3,613.0047.43any other municipality0.00

48.1(d) The total amount of excess police state aid must be deposited in the excess 48.2police state-aid account in the general fund, administered and distributed as provided 48.3in subdivision 11.48.4    Sec. 8. Minnesota Statutes 2009 Supplement, section 69.031, subdivision 5, is 48.5amended to read:48.6    Subd. 5. Deposit of state aid. (a) If the municipality or the independent nonprofit 48.7firefighting corporation is covered by the voluntary statewide lump-sum volunteer 48.8firefighter retirement plan under chapter 353G, the executive director shall credit the fire 48.9state aid against future municipal contribution requirements under section 
         353G.08 and 48.10shall notify the municipality or independent nonprofit firefighting corporation of the fire 48.11state aid so credited at least annually. If the municipality or the independent nonprofit 48.12firefighting corporation is not covered by the voluntary statewide lump-sum volunteer 48.13firefighter retirement plan, the municipal treasurer shall, within 30 days after receipt, 48.14transmit the fire state aid to the treasurer of the duly incorporated firefighters' relief 48.15association if there is one organized and the association has filed a financial report with the 48.16municipality. If the relief association has not filed a financial report with the municipality, 48.17the municipal treasurer shall delay transmission of the fire state aid to the relief association 48.18until the complete financial report is filed. If the municipality or independent nonprofit 48.19firefighting corporation is not covered by the voluntary statewide lump-sum volunteer 48.20firefighter retirement plan, if there is no relief association organized, or if the association 48.21has dissolved or has been removed as trustees of state aid, then the treasurer of the 48.22municipality shall deposit the money in the municipal treasury and the money may be 48.23disbursed only for the purposes and in the manner set forth in section 
         424A.08 or for the 48.24payment of the employer contribution requirement with respect to firefighters covered by 48.25the public employees police and fire retirement plan under section 
         353.65, subdivision 3.48.26(b) The municipal treasurer, upon receipt of the police state aid, shall disburse the 48.27police state aid in the following manner:48.28(1) For a municipality in which a local police relief association exists and all peace 48.29officers are members of the association, the total state aid must be transmitted to the 48.30treasurer of the relief association within 30 days of the date of receipt, and the treasurer 48.31of the relief association shall immediately deposit the total state aid in the special fund 48.32of the relief association;48.33(2) For a municipality in which police retirement coverage is provided by the public 48.34employees police and fire fund and all peace officers are members of the fund, including 48.35municipalities covered by section 
         353.665, the total state aid must be applied toward the 49.1municipality's employer contribution to the public employees police and fire fund under 49.2sections 
         353.65, subdivision 3, and 
         353.665, subdivision 8, paragraph (b), if applicable; or 49.3(3) For a municipality other than a city of the first class with a population of more 49.4than 300,000 in which both a police relief association exists and police retirement 49.5coverage is provided in part by the public employees police and fire fund, the municipality 49.6may elect at its option to transmit the total state aid to the treasurer of the relief association 49.7as provided in clause (1), to use the total state aid to apply toward the municipality's 49.8employer contribution to the public employees police and fire fund subject to all the 49.9provisions set forth in clause (2), or to allot the total state aid proportionately to be 49.10transmitted to the police relief association as provided in this subdivision and to apply 49.11toward the municipality's employer contribution to the public employees police and fire 49.12fund subject to the provisions of clause (2) on the basis of the respective number of active 49.13full-time peace officers, as defined in section 
         69.011, subdivision 1, clause (g). 49.14For a city of the first class with a population of more than 300,000, in addition, the 49.15city may elect to allot the appropriate portion of the total police state aid to apply toward 49.16the employer contribution of the city to the public employees police and fire fund based 49.17on the covered salary of police officers covered by the fund each payroll period and to 49.18transmit the balance to the police relief association; or49.19(4) For a municipality in which police retirement coverage is provided in part by 49.20the public employees police and fire fund and in part by a local police consolidation 49.21account governed by chapter 353A and established before March 2, 1999, for which the 49.22municipality declined merger under section 
         353.665, subdivision 1, or established after 49.23March 1, 1999, the total police state aid must be applied towards the municipality's total 49.24employer contribution to the public employees police and fire fund and to the local police 49.25consolidation account under sections 
         353.65, subdivision 3, and 
         353A.09, subdivision 5. 49.26(c) The county treasurer, upon receipt of the police state aid for the county, shall 49.27apply the total state aid toward the county's employer contribution to the public employees 49.28police and fire fund under section 
         353.65, subdivision 3. 49.29(d) The designated Metropolitan Airports Commission official, upon receipt of the 49.30police state aid for the Metropolitan Airports Commission, shall apply the total police 49.31state aid first toward the commission's employer contribution for police officers to the 49.32Minneapolis Employees Retirement Fund under section 422A.101, subdivision 2a, and, if 49.33there is any amount of police state aid remaining, shall apply that remainder toward the 49.34commission's employer contribution for police officers to the public employees police and 49.35fire plan under section 
         353.65, subdivision 3. 50.1(e) The police state aid apportioned to the Departments of Public Safety and Natural 50.2Resources under section 
         69.021, subdivision 7a, is appropriated to the commissioner 50.3of management and budget for transfer to the funds and accounts from which the 50.4salaries of peace officers certified under section 
         69.011, subdivision 2a 2b, are paid. 50.5The commissioner of revenue shall certify to the commissioners of public safety, 50.6natural resources, and management and budget the amounts to be transferred from the 50.7appropriation for police state aid. The commissioners of public safety and natural 50.8resources shall certify to the commissioner of management and budget the amounts to be 50.9credited to each of the funds and accounts from which the peace officers employed by their 50.10respective departments are paid. Each commissioner shall allocate the police state aid first 50.11for employer contributions for employees funded from the general fund and then for 50.12employer contributions for employees funded from other funds. For peace officers whose 50.13salaries are paid from the general fund, the amounts transferred from the appropriation 50.14for police state aid must be canceled to the general fund. 50.15    Sec. 9. Minnesota Statutes 2008, section 126C.41, subdivision 3, is amended to read:50.16    Subd. 3. Retirement levies. (a) In 1991 and each year thereafter, a district to which 50.17this subdivision applies may levy an additional amount required for contributions to the 50.18general employees retirement plan of the Public Employees Retirement Association as the 50.19successor of the Minneapolis Employees Retirement Fund as a result of the maximum 50.20dollar amount limitation on state contributions to the fundthat plan imposed under 50.21section 
         422A.101, subdivision 3. The additional levy must not exceed the most recent 50.22amount certified by the board of the Minneapolis Employees Retirement Fundexecutive 50.23director of the Public Employees Retirement Association as the district's share of the 50.24contribution requirement in excess of the maximum state contribution under section 50.25422A.101, subdivision 3
         .  50.26(b) For taxes payable in 1994 and thereafter, Special School District No. 1, 50.27Minneapolis, and Independent School District No. 625, St. Paul, may levy for the increase 50.28in the employer retirement fund contributions, under Laws 1992, chapter 598, article 5, 50.29section 1.50.30(c) If the employer retirement fund contributions under section 
         354A.12, subdivision 50.312a
         , are increased for fiscal year 1994 or later fiscal years, Special School District No. 1, 50.32Minneapolis, and Independent School District No. 625, St. Paul, may levy in payable 50.331994 or later an amount equal to the amount derived by applying the net increase in 50.34the employer retirement fund contribution rate of the respective teacher retirement fund 50.35association between fiscal year 1993 and the fiscal year beginning in the year after the 51.1levy is certified to the total covered payroll of the applicable teacher retirement fund 51.2association. If an applicable school district levies under this paragraph, they may not 51.3levy under paragraph (b).  51.4(d) In addition to the levy authorized under paragraph (c), Special School District 51.5No. 1, Minneapolis, may also levy payable in 1997 or later an amount equal to the 51.6contributions under section 
         423A.02, subdivision 3, and may also levy in payable 1994 51.7or later an amount equal to the state aid contribution under section 
         354A.12, subdivision 51.83b
         . Independent School District No. 625, St. Paul, may levy payable in 1997 or later an 51.9amount equal to the supplemental contributions under section 
         423A.02, subdivision 3.  51.10    Sec. 10. Minnesota Statutes 2008, section 256D.21, is amended to read:51.11256D.21 CONTINUATION OF BENEFITS; FORMER MINNEAPOLIS 51.12EMPLOYEES.51.13    Subdivision 1. Continuation of benefits. Each employee of the city of Minneapolis 51.14who is transferred to and employed by the county under the provisions of section 
         256D.2051.15and who is a contributing member of a retirement system organized under the provisions 51.16of Minnesota Statutes 2008, chapter 422A, shall continue to beis a member of that system51.17the MERF division of the Public Employees Retirement Association and is entitled to all 51.18of the applicable benefits conferred therebyby and subject to all the restrictions of chapter 51.19422A, unless the member applies to cancel membership within six months after January 51.201, 1974 section 353.50. 51.21    Subd. 2. City obligation. The cost to the public of that portion of the retirement 51.22allowances or other benefits accrued while any such employee was in the service of the 51.23city of Minneapolis shall remain an obligation of the city and a tax shall be levied and 51.24collected by it to discharge its obligation as provided by chapter 422A in section 353.50, 51.25subdivision 7.51.26    Subd. 3. County obligation. The cost to the public of the retirement allowances 51.27or other benefits accruing to employees so transferred to and employed by the county 51.28shall be the obligation of and paid by the county at such time as the retirement board 51.29shall fix and determine in accordance with chapter 422A in section 353.50, subdivision 51.307. The county shall pay to the municipalgeneral employees retirement fund an amount 51.31certified to the county auditor of the county by the retirement board as the cost of the 51.32retirement allowances and other benefits accruing and owing to such county employees of 51.33the Public Employees Retirement Association those amounts. The cost to the public of 51.34the retirement allowances as herein provided shallcoverage under this section must be 51.35paid from the county revenue fund by the county auditor upon receipt of certification from 52.1the retirement board as herein provided, and the county board is authorized to levy and 52.2collect such taxes as may be necessary to pay such costs.52.3    Sec. 11. Minnesota Statutes 2009 Supplement, section 352.01, subdivision 2b, is 52.4amended to read:52.5    Subd. 2b.  Excluded employees. "State employee" does not include: 52.6    (1) students employed by the University of Minnesota, or the state colleges and 52.7universities, unless approved for coverage by the Board of Regents of the University of 52.8Minnesota or the Board of Trustees of the Minnesota State Colleges and Universities, 52.9whichever is applicable; 52.10    (2) employees who are eligible for membership in the state Teachers Retirement 52.11Association, except employees of the Department of Education who have chosen or may 52.12choose to be covered by the general state employees retirement plan of the Minnesota 52.13State Retirement System instead of the Teachers Retirement Association; 52.14    (3) employees of the University of Minnesota who are excluded from coverage by 52.15action of the Board of Regents; 52.16    (4) officers and enlisted personnel in the National Guard and the naval militia who 52.17are assigned to permanent peacetime duty and who under federal law are or are required to 52.18be members of a federal retirement system; 52.19    (5) election officers; 52.20    (6) persons who are engaged in public work for the state but who are employed 52.21by contractors when the performance of the contract is authorized by the legislature or 52.22other competent authority; 52.23    (7) officers and employees of the senate, or of the house of representatives, or of a 52.24legislative committee or commission who are temporarily employed; 52.25    (8) receivers, jurors, notaries public, and court employees who are not in the judicial 52.26branch as defined in section 
         43A.02, subdivision 25, except referees and adjusters 52.27employed by the Department of Labor and Industry; 52.28    (9) patient and inmate help in state charitable, penal, and correctional institutions 52.29including the Minnesota Veterans Home; 52.30    (10) persons who are employed for professional services where the service is 52.31incidental to their regular professional duties and whose compensation is paid on a per 52.32diem basis; 52.33    (11) employees of the Sibley House Association; 52.34    (12) the members of any state board or commission who serve the state intermittently 52.35and are paid on a per diem basis; the secretary, secretary-treasurer, and treasurer of those 53.1boards if their compensation is $5,000 or less per year, or, if they are legally prohibited 53.2from serving more than three years; and the board of managers of the State Agricultural 53.3Society and its treasurer unless the treasurer is also its full-time secretary; 53.4    (13) state troopers and persons who are described in section 
         352B.011, subdivision 53.510
         , clauses (2) to (8); 53.6    (14) temporary employees of the Minnesota State Fair who are employed on or 53.7after July 1 for a period not to extend beyond October 15 of that year; and persons who 53.8are employed at any time by the state fair administration for special events held on the 53.9fairgrounds; 53.10    (15) emergency employees who are in the classified service; except that if an 53.11emergency employee, within the same pay period, becomes a provisional or probationary 53.12employee on other than a temporary basis, the employee must be considered a "state 53.13employee" retroactively to the beginning of the pay period; 53.14    (16) temporary employees in the classified service, and temporary employees in the 53.15unclassified service who are appointed for a definite period of not more than six months 53.16and who are employed less than six months in any one-year period; 53.17    (17) interns hired for six months or less and trainee employees, except those listed in 53.18subdivision 2a, clause (8); 53.19    (18) persons whose compensation is paid on a fee basis or as an independent 53.20contractor; 53.21    (19) state employees who are employed by the Board of Trustees of the Minnesota 53.22State Colleges and Universities in unclassified positions enumerated in section 
         43A.08, 53.23subdivision 1
         , clause (9); 53.24    (20) state employees who in any year have credit for 12 months service as teachers 53.25in the public schools of the state and as teachers are members of the Teachers Retirement 53.26Association or a retirement system in St. Paul, Minneapolis, or Duluth, except for 53.27incidental employment as a state employee that is not covered by one of the teacher 53.28retirement associations or systems; 53.29    (21) employees of the adjutant general who are employed on an unlimited 53.30intermittent or temporary basis in the classified or unclassified service for the support of 53.31Army and Air National Guard training facilities; 53.32    (22) chaplains and nuns who are excluded from coverage under the federal Old 53.33Age, Survivors, Disability, and Health Insurance Program for the performance of service 53.34as specified in United States Code, title 42, section 410(a)(8)(A), as amended, if no 53.35irrevocable election of coverage has been made under section 3121(r) of the Internal 53.36Revenue Code of 1986, as amended through December 31, 1992; 54.1    (23) examination monitors who are employed by departments, agencies, 54.2commissions, and boards to conduct examinations required by law; 54.3    (24) persons who are appointed to serve as members of fact-finding commissions or 54.4adjustment panels, arbitrators, or labor referees under chapter 179; 54.5    (25) temporary employees who are employed for limited periods under any state or 54.6federal program for training or rehabilitation, including persons who are employed for 54.7limited periods from areas of economic distress, but not including skilled and supervisory 54.8personnel and persons having civil service status covered by the system; 54.9    (26) full-time students who are employed by the Minnesota Historical Society 54.10intermittently during part of the year and full-time during the summer months; 54.11    (27) temporary employees who are appointed for not more than six months, of 54.12the Metropolitan Council and of any of its statutory boards, if the board members are 54.13appointed by the Metropolitan Council; 54.14    (28) persons who are employed in positions designated by the Department of 54.15Management and Budget as student workers; 54.16    (29) members of trades who are employed by the successor to the Metropolitan 54.17Waste Control Commission, who have trade union pension plan coverage under a 54.18collective bargaining agreement, and who are first employed after June 1, 1977; 54.19    (30) off-duty peace officers while employed by the Metropolitan Council; 54.20    (31) persons who are employed as full-time police officers by the Metropolitan 54.21Council and as police officers are members of the public employees police and fire fund; 54.22    (32) persons who are employed as full-time firefighters by the Department of Military 54.23Affairs and as firefighters are members of the public employees police and fire fund; 54.24    (33) foreign citizens with a work permit of less than three years, or an H-1b/JV visa 54.25valid for less than three years of employment, unless notice of extension is supplied which 54.26allows them to work for three or more years as of the date the extension is granted, in 54.27which case they are eligible for coverage from the date extended; and 54.28    (34) persons who are employed by the Board of Trustees of the Minnesota State 54.29Colleges and Universities and who elected to remain members of the Public Employees 54.30Retirement Association or of the MERF division of the Public Employees Retirement 54.31Association as the successor of the Minneapolis Employees Retirement Fund, whichever 54.32applies, under Minnesota Statutes 1994, section 
         136C.75. 54.33    Sec. 12. Minnesota Statutes 2008, section 353.03, subdivision 1, is amended to read:54.34    Subdivision 1. Management; composition; election. (a) The management of the 54.35public general employees retirement fund is vested in an 11-member board of trustees 55.1consisting of ten members and the state auditor. The state auditor may designate a deputy 55.2auditor with expertise in pension matters as the auditor's representative on the board. The 55.3governor shall appoint five trustees to four-year terms, one of whom shall be designated to 55.4represent school boards, one to represent cities, one to represent counties, one who is a 55.5retired annuitant, and one who is a public member knowledgeable in pension matters. The 55.6membership of the association, including recipients of retirement annuities and disability 55.7and survivor benefits, shall elect five trustees for terms of four years, one of whom must be 55.8a member of the police and fire fund and one of whom must be a former member who met 55.9the definition of public employee under section 
         353.01, subdivisions 2 and 2a, for at least 55.10five years prior to terminating membership or a member who receives a disability benefit. 55.11Terms expire on January 31 of the fourth year, and positions are vacant until newly elected 55.12members are seated. Except as provided in this subdivision, trustees elected by the 55.13membership of the association must be public employees and members of the association. 55.14(b) For seven days beginning October 1 of each year preceding a year in which 55.15an election is held, the association shall accept at its office filings in person or by mail 55.16of candidates for the board of trustees. A candidate shall submit at the time of filing a 55.17nominating petition signed by 25 or more members of the association. No name may 55.18be withdrawn from nomination by the nominee after October 15. At the request of a 55.19candidate for an elected position on the board of trustees, the board shall mail a statement 55.20of up to 300 words prepared by the candidate to all persons eligible to vote in the election 55.21of the candidate. The board may adopt policies, subject to review and approval by the 55.22secretary of state under paragraph (e), to govern the form and length of these statements, 55.23timing of mailings, and deadlines for submitting materials to be mailed. The secretary 55.24of state shall resolve disputes between the board and a candidate concerning application 55.25of these policies to a particular statement. 55.26(c) By January 10 of each year in which elections are to be held, the board shall 55.27distribute by mail to the members ballots listing the candidates. No member may vote for 55.28more than one candidate for each board position to be filled. A ballot indicating a vote for 55.29more than one person for any position is void. No special marking may be used on the 55.30ballot to indicate incumbents. Ballots mailed to the association must be postmarked no 55.31later than January 31. The ballot envelopes must be so designated and the ballots must be 55.32counted in a manner that ensures that each vote is secret.55.33(d) A candidate who receives contributions or makes expenditures in excess of $100, 55.34or has given implicit or explicit consent for any other person to receive contributions or 55.35make expenditures in excess of $100 for the purpose of bringing about the candidate's 55.36election, shall file a report with the campaign finance and public disclosure board 56.1disclosing the source and amount of all contributions to the candidate's campaign. The 56.2campaign finance and public disclosure board shall prescribe forms governing these 56.3disclosures. Expenditures and contributions have the meaning defined in section 
         10A.01. 56.4These terms do not include the mailing made by the association board on behalf of the 56.5candidate. A candidate shall file a report within 30 days from the day that the results of 56.6the election are announced. The Campaign Finance and Public Disclosure Board shall 56.7maintain these reports and make them available for public inspection in the same manner 56.8as the board maintains and makes available other reports filed with it. 56.9(e) The secretary of state shall review and approve the procedures defined by the 56.10board of trustees for conducting the elections specified in this subdivision, including 56.11board policies adopted under paragraph (b). 56.12(f) The board of trustees and the executive director shall undertake their activities 56.13consistent with chapter 356A.56.14    Sec. 13. Minnesota Statutes 2008, section 353.71, subdivision 4, is amended to read:56.15    Subd. 4. Repayment of refund. Any person who has received a refund from the 56.16public general employees retirement fund and who is a member of any public retirement 56.17system referred to in subdivision 1, may repay such refund to the public general employees 56.18retirement fund as provided in section 
         353.35. 56.19    Sec. 14. Minnesota Statutes 2008, section 353.86, subdivision 1, is amended to read:56.20    Subdivision 1. Participation. Volunteer ambulance service personnel, as defined 56.21in section 
         353.01, subdivision 35, who are or become members of and participants in 56.22the public general employees retirement fund or the public employees police and fire 56.23fund before July 1, 2002, and make contributions to either of those funds based on 56.24compensation for service other than volunteer ambulance service may elect to participate 56.25in that same fund with respect to compensation received for volunteer ambulance service, 56.26provided that the volunteer ambulance service is not credited to another public or private 56.27pension plan including the public employees retirement plan established by chapter 56.28353D and provided further that the volunteer ambulance service is rendered for the same 56.29governmental unit for which the nonvolunteer ambulance service is rendered.  56.30    Sec. 15. Minnesota Statutes 2008, section 353.86, subdivision 2, is amended to read:56.31    Subd. 2. Election. Volunteer ambulance service personnel to whom subdivision 56.321 applies may exercise the election authorized under subdivision 1 within the earlier of 56.33the one-year period beginning on July 1, 1989, and extending through June 30, 1990, or 57.1the one-year period commencing on the first day of the first month following the start of 57.2employment in a position covered by the public general employees retirement fund or the 57.3public employees police and fire fund. The election must be exercised by filing a written 57.4notice on a form prescribed by the executive director of the association.57.5    Sec. 16. Minnesota Statutes 2008, section 353.87, subdivision 1, is amended to read:57.6    Subdivision 1. Participation. Except as provided in subdivision 2, a volunteer 57.7firefighter, as defined in section 
         353.01, subdivision 36, who, on June 30, 1989, was 57.8a member of, and a participant in, the public general employees retirement fund or the 57.9public employees police and fire fund and was making contributions to either of those 57.10funds based, at least in part, on compensation for services performed as a volunteer 57.11firefighter shall continue as a member of, and a participant in, the public general57.12employees retirement fund or the public employees police and fire fund and compensation 57.13for services performed as a volunteer firefighter shall be considered salary. 57.14    Sec. 17. Minnesota Statutes 2008, section 353.87, subdivision 2, is amended to read:57.15    Subd. 2. Option. A volunteer firefighter to whom subdivision 1 applies has the 57.16option to terminate membership and future participation in the public general employees 57.17retirement fund or the public employees police and fire fund upon filing of a written notice 57.18of intention to terminate participation. Notice must be given on a form prescribed by the 57.19executive director of the association and must be filed in the offices of the association not 57.20later than June 30, 1990.57.21    Sec. 18. Minnesota Statutes 2008, section 353.88, is amended to read:57.22353.88 PENALTY FOR MEMBERSHIP MISCERTIFICATIONS AND 57.23CERTIFICATION FAILURES.57.24(a) If the board of trustees of the Public Employees Retirement Association, 57.25upon the recommendation of the executive director, determines that a governmental 57.26subdivision has certified a public employee for membership in the public employees 57.27police and fire retirement plan when the public employee was not eligible for that 57.28retirement plan coverage, the public employee must be covered by the correct retirement 57.29plan for subsequent service, the public employee retains the coverage for the period of 57.30the misclassification, and the governmental subdivision shall pay in a lump sum the 57.31difference in the actuarial present value of the retirement annuities to which the public 57.32employee would have been entitled if the public employee was properly classified. The 57.33governmental subdivision payment is payable within 30 days of the board's determination. 58.1If unpaid, it must be collected under section 
         353.28. The lump-sum payment must be 58.2deposited in the public general employees retirement fund. 58.3(b) If the executive director of the Public Employees Retirement Association 58.4determines that a governmental subdivision has failed to certify a person for retirement 58.5plan membership and coverage under this chapter, in addition to the procedures under 58.6section 
         353.27, subdivision 4, 9, 10, 11, 12, 12a, or 12b, the director shall charge a fine of 58.7$25 for each membership certification failure. 58.8    Sec. 19. Minnesota Statutes 2008, section 354.71, is amended to read:58.9354.71 MINNEAPOLIS EMPLOYEES RETIREMENT FUND STATE AID 58.10REDEDICATED.58.11    Subdivision 1. Appropriation. The positive difference, if any, between the 58.12actual state aid paidpayable to the MERF division account of the Public Employees 58.13Retirement Association with respect to the former Minneapolis Employees Retirement 58.14Fund under section 
         422A.101, subdivision 3, and $8,065,000 annually is appropriated 58.15from the general fund to the commissioner of management and budget for deposit in 58.16the Teachers Retirement Association to offset all or a portion of the current and future58.17unfunded actuarial accrued liability of the former Minneapolis Teachers Retirement 58.18Fund Association.58.19    Subd. 2. Financial requirements. The appropriation in subdivision 1 is available to 58.20the extent that financial requirements ofwith respect to the MERF division of the Public 58.21Employees Retirement Association as the successor of the former Minneapolis Employees 58.22Retirement Fund under section 
         422A.101, subdivision 3,353.50 have been satisfied.58.23    Sec. 20. Minnesota Statutes 2008, section 354A.011, subdivision 27, is amended to 58.24read:58.25    Subd. 27. Teacher. (a) "Teacher" means any person who renders service for a public 58.26school district, other than a charter school, located in the corporate limits of Duluth or 58.27St. Paul, as any of the following:58.28(1) a full-time employee in a position for which a valid license from the state 58.29Department of Education is required;58.30(2) an employee of the teachers retirement fund association located in the city of 58.31the first class unless the employee has exercised the option pursuant to Laws 1955, 58.32chapter 10, section 1, to retain membership in the Minneapolis Employees Retirement 58.33Fund established pursuant to chapter 422A;59.1(3) a part-time employee in a position for which a valid license from the state 59.2Department of Education is required; or59.3(4) a part-time employee in a position for which a valid license from the state 59.4Department of Education is required who also renders other nonteaching services for the 59.5school district, unless the board of trustees of the teachers retirement fund association 59.6determines that the combined employment is on the whole so substantially dissimilar to 59.7teaching service that the service may not be covered by the association.59.8(b) The term does not mean any person who renders service in the school district 59.9as any of the following:59.10(1) an independent contractor or the employee of an independent contractor;59.11(2) an employee who is a full-time teacher covered by the Teachers Retirement 59.12Association or by another teachers retirement fund association established pursuant to this 59.13chapter or chapter 354;59.14(3) an employee exempt from licensure pursuant to section 
         122A.30; 59.15(4) an employee who is a teacher in a technical college located in a city of the first 59.16class unless the person elects coverage by the applicable first class city teacher retirement 59.17fund association under section 
         354B.21, subdivision 2; 59.18(5) a teacher employed by a charter school, irrespective of the location of the 59.19school; or59.20(6) an employee who is a part-time teacher in a technical college in a city of the first 59.21class and who has elected coverage by the applicable first class city teacher retirement 59.22fund association under section 
         354B.21, subdivision 2, but (i) the teaching service is 59.23incidental to the regular nonteaching occupation of the person; (ii) the applicable technical 59.24college stipulates annually in advance that the part-time teaching service will not exceed 59.25300 hours in a fiscal year; and (iii) the part-time teaching actually does not exceed 300 59.26hours in the fiscal year to which the certification applies. 59.27    Sec. 21. Minnesota Statutes 2008, section 354A.39, is amended to read:59.28354A.39 SERVICE IN OTHER PUBLIC RETIREMENT FUNDS; ANNUITY.59.29Any person who has been a member of the Minnesota State Retirement System, the 59.30Public Employees Retirement Association including the Public Employees Retirement 59.31Association Police and Fire Fund, the Teachers Retirement Association, the Minnesota 59.32State Patrol Retirement Association, the legislators retirement plan, the constitutional 59.33officers retirement plan, the Minneapolis Employees Retirement Fund, the Duluth 59.34Teachers Retirement Fund Association new law coordinated program, the St. Paul 59.35Teachers Retirement Fund Association coordinated program, or any other public employee 60.1retirement system in the state of Minnesota having a like provision but excluding all other 60.2funds providing retirement benefits for police officers or firefighters shall be entitled 60.3when qualified to an annuity from each fund if the person's total allowable service in all 60.4of the funds or in any two or more of the funds totals three or more years, provided that 60.5no portion of the allowable service upon which the retirement annuity from one fund is 60.6based is used again in the computation for a retirement annuity from another fund and 60.7provided further that the person has not taken a refund from any of funds or associations 60.8since the person's membership in the fund or association has terminated. The annuity 60.9from each fund or association shall be determined by the appropriate provisions of the 60.10law governing each fund or association, except that the requirement that a person must 60.11have at least three years of allowable service in the respective fund or association shall not 60.12apply for the purposes of this section, provided that the aggregate service in two or more 60.13of these funds equals three or more years.60.14    Sec. 22. Minnesota Statutes 2008, section 355.095, subdivision 1, is amended to read:60.15    Subdivision 1. Agreement. (a) The director, on behalf of the state, its political 60.16subdivisions, and its other governmental employers, is authorized to enter into an 60.17agreement with the Secretary of Health and Human Services to extend the provisions of 60.18United States Code, title 42, section 426, 426-1, and 1395c, to the employees in paragraph 60.19(b) who meet the requirements of United States Code, title 42, section 418(v)(2) and who 60.20do not have coverage by the federal old age, survivors, and disability insurance program 60.21for that employment under any previous modification of the agreement or previous 60.22Medicare referendum.60.23(b) The applicable employees are:60.24(1) employees who are members of one of the retirement plans in Minnesota Statutes 60.252008, section 
         356.30, subdivision 3, except clauses (4) and (8), based on continuous 60.26employment since March 31, 1986; and60.27(2) employees of a special authority or district who have been continuously 60.28employed by the special authority or district since March 31, 1986.60.29    Sec. 23. Minnesota Statutes 2009 Supplement, section 356.20, subdivision 2, is 60.30amended to read:60.31    Subd. 2. Covered public pension plans and funds. This section applies to the 60.32following public pension plans:60.33    (1) the general state employees retirement plan of the Minnesota State Retirement 60.34System;61.1    (2) the general employees retirement plan of the Public Employees Retirement 61.2Association;61.3    (3) the Teachers Retirement Association;61.4    (4) the State Patrol retirement plan;61.5    (5) the St. Paul Teachers Retirement Fund Association;61.6    (6) the Duluth Teachers Retirement Fund Association;61.7    (7) the Minneapolis Employees Retirement Fund;61.8    (8)(7) the University of Minnesota faculty retirement plan;61.9    (9)(8) the University of Minnesota faculty supplemental retirement plan;61.10    (10)(9) the judges retirement fund;61.11    (11)(10) a police or firefighter's relief association specified or described in section 61.1269.77, subdivision 1a
         ;61.13    (12)(11) a volunteer firefighter relief association governed by section 
         69.771, 61.14subdivision 1
         ; 61.15    (13)(12) the public employees police and fire plan of the Public Employees 61.16Retirement Association;61.17    (14)(13) the correctional state employees retirement plan of the Minnesota State 61.18Retirement System; 61.19    (15)(14) the local government correctional service retirement plan of the Public 61.20Employees Retirement Association; and61.21(16)(15) the voluntary statewide lump-sum volunteer firefighter retirement plan.61.22    Sec. 24. Minnesota Statutes 2008, section 356.214, subdivision 1, is amended to read:61.23    Subdivision 1. Actuary retention. (a) The governing board or managing or 61.24administrative official of each public pension plan and retirement fund or plan enumerated 61.25in paragraph (b) shall contract with an established actuarial consulting firm to conduct 61.26annual actuarial valuations and related services. The principal from the actuarial 61.27consulting firm on the contract must be an approved actuary under section 
         356.215, 61.28subdivision 1
         , paragraph (c). 61.29    (b) Actuarial services must include the preparation of actuarial valuations and 61.30related actuarial work for the following retirement plans:61.31    (1) the teachers retirement plan, Teachers Retirement Association;61.32    (2) the general state employees retirement plan, Minnesota State Retirement System;61.33    (3) the correctional employees retirement plan, Minnesota State Retirement System;61.34    (4) the State Patrol retirement plan, Minnesota State Retirement System;61.35    (5) the judges retirement plan, Minnesota State Retirement System;62.1    (6) the Minneapolis employees retirement plan, Minneapolis Employees Retirement 62.2Fund;62.3    (7)(6) the publicgeneral employees retirement plan, Public Employees Retirement 62.4Association, including the MERF division;62.5    (8)(7) the public employees police and fire plan, Public Employees Retirement 62.6Association;62.7    (9)(8) the Duluth teachers retirement plan, Duluth Teachers Retirement Fund 62.8Association;62.9    (10)(9) the St. Paul teachers retirement plan, St. Paul Teachers Retirement Fund 62.10Association;62.11    (11)(10) the legislators retirement plan, Minnesota State Retirement System;62.12    (12)(11) the elective state officers retirement plan, Minnesota State Retirement 62.13System; and62.14    (13)(12) local government correctional service retirement plan, Public Employees 62.15Retirement Association.62.16    (c) The contracts must require completion of the annual actuarial valuation 62.17calculations on a fiscal year basis, with the contents of the actuarial valuation calculations 62.18as specified in section 
         356.215, and in conformity with the standards for actuarial work 62.19adopted by the Legislative Commission on Pensions and Retirement. 62.20    The contracts must require completion of annual experience data collection and 62.21processing and a quadrennial published experience study for the plans listed in paragraph 62.22(b), clauses (1), (2), and (7) (6), as provided for in the standards for actuarial work 62.23adopted by the commission. The experience data collection, processing, and analysis 62.24must evaluate the following:62.25    (1) individual salary progression;62.26    (2) the rate of return on investments based on the current asset value;62.27    (3) payroll growth;62.28    (4) mortality;62.29    (5) retirement age;62.30    (6) withdrawal; and62.31    (7) disablement.62.32    (d) The actuary shall annually prepare a report to the governing or managing board 62.33or administrative official and the legislature, summarizing the results of the actuarial 62.34valuation calculations. The actuary shall include with the report any recommendations 62.35concerning the appropriateness of the support rates to achieve proper funding of 62.36the retirement plans by the required funding dates. The actuary shall, as part of the 63.1quadrennial experience study, include recommendations on the appropriateness of the 63.2actuarial valuation assumptions required for evaluation in the study.63.3    (e) If the actuarial gain and loss analysis in the actuarial valuation calculations 63.4indicates a persistent pattern of sizable gains or losses, the governing or managing board 63.5or administrative official shall direct the actuary to prepare a special experience study for a 63.6plan listed in paragraph (b), clause (3), (4), (5), (6) (7), (8), (9), (10), (11), or (12), or (13),63.7in the manner provided for in the standards for actuarial work adopted by the commission.63.8    Sec. 25. Minnesota Statutes 2008, section 356.30, subdivision 3, is amended to read:63.9    Subd. 3. Covered plans. This section applies to the following retirement plans:63.10(1) the general state employees retirement plan of the Minnesota State Retirement 63.11System, established under chapter 352;63.12(2) the correctional state employees retirement plan of the Minnesota State 63.13Retirement System, established under chapter 352;63.14(3) the unclassified employees retirement program, established under chapter 352D;63.15(4) the State Patrol retirement plan, established under chapter 352B;63.16(5) the legislators retirement plan, established under chapter 3A;63.17(6) the elective state officers retirement plan, established under chapter 352C;63.18(7) the general employees retirement plan of the Public Employees Retirement 63.19Association, established under chapter 353, including the MERF division of the Public 63.20Employees Retirement Association;63.21(8) the public employees police and fire retirement plan of the Public Employees 63.22Retirement Association, established under chapter 353;63.23(9) the local government correctional service retirement plan of the Public 63.24Employees Retirement Association, established under chapter 353E;63.25(10) the Teachers Retirement Association, established under chapter 354;63.26(11) the Minneapolis Employees Retirement Fund, established under chapter 422A;63.27(12)(11) the St. Paul Teachers Retirement Fund Association, established under 63.28chapter 354A;63.29(13)(12) the Duluth Teachers Retirement Fund Association, established under 63.30chapter 354A; and63.31(14)(13) the judges retirement fund, established by chapter 490. 63.32    Sec. 26. Minnesota Statutes 2008, section 356.302, subdivision 1, is amended to read:63.33    Subdivision 1. Definitions. (a) The terms used in this section are defined in this 63.34subdivision.64.1(b) "Average salary" means the highest average of covered salary for the appropriate 64.2period of credited service that is required for the calculation of a disability benefit by 64.3the covered retirement plan and that is drawn from any period of credited service and 64.4successive years of covered salary in a covered retirement plan.64.5(c) "Covered retirement plan" or "plan" means a retirement plan listed in subdivision 64.67.64.7(d) "Duty-related" means a disabling illness or injury that occurred while the person 64.8was actively engaged in employment duties or that arose out of the person's active 64.9employment duties.64.10(e) "General employee retirement plan" means a covered retirement plan listed in 64.11subdivision 7, clauses (1) to (8)(6) and (13) (12).64.12(f) "Occupationally disabled" means the condition of having a medically 64.13determinable physical or mental impairment that makes a person unable to satisfactorily 64.14perform the minimum requirements of the person's employment position or a substantially 64.15similar employment position.64.16(g) "Public safety employee retirement plan" means a covered retirement plan listed 64.17in subdivision 7, clauses (9) (7)  to (12) (11).64.18(h) "Totally and permanently disabled" means the condition of having a medically 64.19determinable physical or mental impairment that makes a person unable to engage in any 64.20substantial gainful activity and that is expected to continue or has continued for a period 64.21of at least one year or that is expected to result directly in the person's death.64.22    Sec. 27. Minnesota Statutes 2008, section 356.302, subdivision 7, is amended to read:64.23    Subd. 7. Covered retirement plans. This section applies to the following 64.24retirement plans:64.25(1) the general state employees retirement plan of the Minnesota State Retirement 64.26System, established by chapter 352;64.27(2) the unclassified state employees retirement program of the Minnesota State 64.28Retirement System, established by chapter 352D;64.29(3) the general employees retirement plan of the Public Employees Retirement 64.30Association, established by chapter 353, including the MERF division of the Public 64.31Employees Retirement Association;64.32(4) the Teachers Retirement Association, established by chapter 354;64.33(5) the Duluth Teachers Retirement Fund Association, established by chapter 354A;64.34(6) the St. Paul Teachers Retirement Fund Association, established by chapter 354A;64.35(7) the Minneapolis Employees Retirement Fund, established by chapter 422A;65.1(8)(7) the state correctional employees retirement plan of the Minnesota State 65.2Retirement System, established by chapter 352;65.3(9)(8) the State Patrol retirement plan, established by chapter 352B;65.4(10)(9) the public employees police and fire plan of the Public Employees 65.5Retirement Association, established by chapter 353;65.6(11)(10) the local government correctional service retirement plan of the Public 65.7Employees Retirement Association, established by chapter 353E; and65.8(12)(11) the judges retirement plan, established by chapter 490. 65.9    Sec. 28. Minnesota Statutes 2008, section 356.303, subdivision 4, is amended to read:65.10    Subd. 4. Covered retirement plans. This section applies to the following 65.11retirement plans:65.12(1) the legislators retirement plan, established by chapter 3A;65.13(2) the general state employees retirement plan of the Minnesota State Retirement 65.14System, established by chapter 352;65.15(3) the correctional state employees retirement plan of the Minnesota State 65.16Retirement System, established by chapter 352;65.17(4) the State Patrol retirement plan, established by chapter 352B;65.18(5) the elective state officers retirement plan, established by chapter 352C;65.19(6) the unclassified state employees retirement program, established by chapter 65.20352D;65.21(7) the general employees retirement plan of the Public Employees Retirement 65.22Association, established by chapter 353, including the MERF division of the Public 65.23Employees Retirement Association;65.24(8) the public employees police and fire plan of the Public Employees Retirement 65.25Association, established by chapter 353;65.26(9) the local government correctional service retirement plan of the Public 65.27Employees Retirement Association, established by chapter 353E;65.28(10) the Teachers Retirement Association, established by chapter 354;65.29(11) the Duluth Teachers Retirement Fund Association, established by chapter 354A;65.30(12) the St. Paul Teachers Retirement Fund Association, established by chapter 65.31354A; and65.32(13) the Minneapolis Employees Retirement Fund, established by chapter 422A; and65.33(14)(13) the judges retirement fund, established by chapter 490. 66.1    Sec. 29. Minnesota Statutes 2009 Supplement, section 356.32, subdivision 2, is 66.2amended to read:66.3    Subd. 2. Covered retirement plans. The provisions of this section apply to the 66.4following retirement plans:66.5(1) the general state employees retirement plan of the Minnesota State Retirement 66.6System, established under chapter 352;66.7(2) the correctional state employees retirement plan of the Minnesota State 66.8Retirement System, established under chapter 352;66.9(3) the State Patrol retirement plan, established under chapter 352B;66.10(4) the general employees retirement plan of the Public Employees Retirement 66.11Association, established under chapter 353, including the MERF division of the Public 66.12Employees Retirement Association;66.13(5) the public employees police and fire plan of the Public Employees Retirement 66.14Association, established under chapter 353;66.15(6) the Teachers Retirement Association, established under chapter 354;66.16(7) the Minneapolis Employees Retirement Fund, established under chapter 422A;66.17(8)(7) the Duluth Teachers Retirement Fund Association, established under chapter 66.18354A; and66.19(9)(8) the St. Paul Teachers Retirement Fund Association, established under chapter 66.20354A.66.21    Sec. 30. Minnesota Statutes 2009 Supplement, section 356.401, subdivision 3, is 66.22amended to read:66.23    Subd. 3. Covered retirement plans. The provisions of this section apply to the 66.24following retirement plans:66.25(1) the legislators retirement plan, established by chapter 3A;66.26(2) the general state employees retirement plan of the Minnesota State Retirement 66.27System, established by chapter 352;66.28(3) the correctional state employees retirement plan of the Minnesota State 66.29Retirement System, established by chapter 352;66.30(4) the State Patrol retirement plan, established by chapter 352B;66.31(5) the elective state officers retirement plan, established by chapter 352C;66.32(6) the unclassified state employees retirement program, established by chapter 66.33352D;67.1(7) the general employees retirement plan of the Public Employees Retirement 67.2Association, established by chapter 353, including the MERF division of the Public 67.3Employees Retirement Association;67.4(8) the public employees police and fire plan of the Public Employees Retirement 67.5Association, established by chapter 353;67.6(9) the public employees defined contribution plan, established by chapter 353D;67.7(10) the local government correctional service retirement plan of the Public 67.8Employees Retirement Association, established by chapter 353E;67.9(11) the voluntary statewide lump-sum volunteer firefighter retirement plan, 67.10established by chapter 353G;67.11(12) the Teachers Retirement Association, established by chapter 354;67.12(13) the Duluth Teachers Retirement Fund Association, established by chapter 354A;67.13(14) the St. Paul Teachers Retirement Fund Association, established by chapter 67.14354A;67.15(15) the individual retirement account plan, established by chapter 354B;67.16(16) the higher education supplemental retirement plan, established by chapter 354C;67.17(17) the Minneapolis Employees Retirement Fund, established by chapter 422A;67.18(18)(17) the Minneapolis Police Relief Association, established by chapter 423B;67.19(19)(18) the Minneapolis Firefighters Relief Association, established by chapter 67.20423C; and67.21(20)(19) the judges retirement fund, established by chapter 490.67.22    Sec. 31. Minnesota Statutes 2008, section 356.407, subdivision 2, is amended to read:67.23    Subd. 2. Covered funds. The provisions of this section apply to the following 67.24retirement funds:67.25(1) the general employees retirement plan of the Public Employees Retirement 67.26Association established under chapter 353, including the MERF division of the Public 67.27Employees Retirement Association;67.28(2) the public employees police and fire plan of the Public Employees Retirement 67.29Association established under chapter 353;67.30(3) the State Patrol retirement plan established under chapter 352B;67.31(4) the legislators retirement plan established under chapter 3A;67.32(5) the elective state officers retirement plan established under chapter 352C; and67.33(6) the Teachers Retirement Association established under chapter 354; and.67.34(7) the Minneapolis Employees Retirement Fund established under chapter 422A.68.1    Sec. 32. Minnesota Statutes 2009 Supplement, section 356.415, subdivision 2, is 68.2amended to read:68.3    Subd. 2. Covered retirement plans. The provisions of this section apply to the 68.4following retirement plans:68.5(1) the legislators retirement plan established under chapter 3A;68.6(2) the correctional state employees retirement plan of the Minnesota State 68.7Retirement System established under chapter 352;68.8(3) the general state employees retirement plan of the Minnesota State Retirement 68.9System established under chapter 352;68.10(4) the State Patrol retirement plan established under chapter 352B;68.11(5) the elective state officers retirement plan established under chapter 352C;68.12(6) the general employees retirement plan of the Public Employees Retirement 68.13Association established under chapter 353, including the MERF division of the Public 68.14Employees Retirement Association;68.15(7) the public employees police and fire retirement plan of the Public Employees 68.16Retirement Association established under chapter 353;68.17(8) the local government correctional employees retirement plan of the Public 68.18Employees Retirement Association established under chapter 353E;68.19(9) the teachers retirement plan established under chapter 354; and68.20(10) the judges retirement plan established under chapter 490.68.21    Sec. 33. Minnesota Statutes 2008, section 356.431, subdivision 1, is amended to read:68.22    Subdivision 1. Lump-sum postretirement payment conversion. For benefits paid 68.23after December 31, 2001, to eligible persons under sectionssection 356.42and 356.43, 68.24the amount of the most recent lump-sum benefit payable to an eligible recipient under 68.25sectionssection 356.42and 356.43 must be divided by 12. The result must be added to 68.26the monthly annuity or benefit otherwise payable to an eligible recipient, must become a 68.27permanent part of the benefit recipient's pension, and must be included in any pension 68.28benefit subject to future increases.68.29    Sec. 34. Minnesota Statutes 2008, section 356.465, subdivision 3, is amended to read:68.30    Subd. 3. Covered retirement plans. The provisions of this section apply to the 68.31following retirement plans:68.32(1) the general state employees retirement plan of the Minnesota State Retirement 68.33System established under chapter 352;69.1(2) the correctional state employees retirement plan of the Minnesota State 69.2Retirement System established under chapter 352;69.3(3) the State Patrol retirement plan established under chapter 352B;69.4(4) the legislators retirement plan established under chapter 3A;69.5(5) the judges retirement plan established under chapter 490;69.6(6) the general employees retirement plan of the Public Employees Retirement 69.7Association established under chapter 353, including the MERF division of the Public 69.8Employees Retirement Association;69.9(7) the public employees police and fire plan of the Public Employees Retirement 69.10Association established under chapter 353;69.11(8) the teachers retirement plan established under chapter 354;69.12(9) the Duluth Teachers Retirement Fund Association established under chapter 69.13354A;69.14(10) the St. Paul Teachers Retirement Fund Association established under chapter 69.15354A;69.16(11) the Minneapolis Employees Retirement Fund established under chapter 422A;69.17(12)(11) the Minneapolis Firefighters Relief Association established under chapter 69.18423C;69.19(13)(12) the Minneapolis Police Relief Association established under chapter 69.20423B; and69.21(14)(13) the local government correctional service retirement plan of the Public 69.22Employees Retirement Association established under chapter 353E.69.23    Sec. 35. Minnesota Statutes 2008, section 356.64, is amended to read:69.24356.64 REAL ESTATE INVESTMENTS.69.25(a) Notwithstanding any law to the contrary, any public pension plan whose assets 69.26are not invested by the State Board of Investment may invest its funds in Minnesota situs 69.27nonfarm real estate ownership interests or loans secured by mortgages or deeds of trust if 69.28the investment is consistent with section 
         356A.04.  69.29(b) Except to the extent authorized in the case of the Minneapolis Employees 69.30Retirement Fund under section 422A.05, subdivision 2c, paragraph (a), An investment 69.31otherwise authorized by this section must also comply with the requirements and 69.32limitations of section 
         11A.24, subdivision 6.  69.33    Sec. 36. Minnesota Statutes 2008, section 356.65, subdivision 2, is amended to read:70.1    Subd. 2.  Disposition of abandoned amounts. Any unclaimed public pension 70.2fund amounts existing in any public pension fund are presumed to be abandoned, but are 70.3not subject to the provisions of sections 
         345.31 to 
         345.60. Unless the benefit plan of 70.4the public pension fund specifically provides for a different disposition of unclaimed or 70.5abandoned funds or amounts, any unclaimed public pension fund amounts cancel and 70.6must be credited to the public pension fund. If the unclaimed public pension fund amount 70.7exceeds $25 and the inactive or former member again becomes a member of the applicable 70.8public pension plan or applies for a retirement annuity under section 
         3A.12, 
         352.72, 70.9352B.30
         , 
         353.71, 
         354.60, 
         or 356.30, or 422A.16, subdivision 8, whichever applies, the 70.10canceled amount must be restored to the credit of the person. 70.11    Sec. 37. Minnesota Statutes 2008, section 356.91, is amended to read:70.12356.91 VOLUNTARY MEMBERSHIP DUES DEDUCTION.70.13    (a) Upon written authorization of a person receiving an annuity from a public 70.14pension fund administered by the Minnesota State Retirement System,or the Public 70.15Employees Retirement Association, or the Minneapolis Employees Retirement Fund, the 70.16executive director of the public pension fund may deduct from the retirement annuity an 70.17amount requested by the annuitant to be paid as dues to any labor organization that is an 70.18exclusive bargaining agent representing public employees or an organization representing 70.19retired public employees of which the annuitant is a member and shall pay the amount to 70.20the organization so designated by the annuitant.70.21    (b) A pension fund and the plan fiduciaries which authorize or administer deductions 70.22of dues payments under paragraph (a) are not liable for failure to properly deduct or 70.23transmit the dues amounts, provided that the fund and the fiduciaries have acted in good 70.24faith.70.25    (c) The deductions under paragraph (a) may occur no more frequently than two 70.26times per year and may not be used for political purposes.70.27    (d) Any labor organization specified in paragraph (a) shall reimburse the public 70.28pension fund for the administrative expense of withholding premium amounts.70.29    Sec. 38. Minnesota Statutes 2009 Supplement, section 356.96, subdivision 1, is 70.30amended to read:70.31    Subdivision 1. Definitions. (a) Unless the language or context clearly indicates that 70.32a different meaning is intended, for the purpose of this section, the terms in paragraphs 70.33(b) to (e) have the meanings given them.71.1    (b) "Chief administrative officer" means the executive director of a covered pension 71.2plan or the executive director's designee or representative.71.3    (c) "Covered pension plan" means a plan enumerated in section 
         356.20, subdivision 71.42, clauses (1) to (4), (10) (9), and (13)(12) to (16) (15), but does not mean the 71.5deferred compensation plan administered under sections 
         352.965 and 
         352.97 or to the 71.6postretirement health care savings plan administered under section 
         352.98.71.7    (d) "Governing board" means the Board of Trustees of the Public Employees 71.8Retirement Association, the Board of Trustees of the Teachers Retirement Association, or 71.9the Board of Directors of the Minnesota State Retirement System.71.10    (e) "Person" includes an active, retired, deferred, or nonvested inactive participant in 71.11a covered pension plan or a beneficiary of a participant, or an individual who has applied 71.12to be a participant or who is or may be a survivor of a participant, or a state agency or 71.13other governmental unit that employs active participants in a covered pension plan.71.14    Sec. 39. Minnesota Statutes 2008, section 473.511, subdivision 3, is amended to read:71.15    Subd. 3. Existing sanitary districts, joint sewer boards. Effective January 1, 71.161971, the corporate existence of the Minneapolis-St. Paul Sanitary District, the North 71.17Suburban Sanitary Sewer District, and any joint board created by agreement among local 71.18government units pursuant to section 
         471.59, to provide interceptors and treatment works 71.19for such local government units, shall terminate. All persons regularly employed by 71.20such sanitary districts and joint boards on that date or on any earlier date on which the 71.21former waste control commission pursuant to subdivisions 1 and 2 assumed ownership 71.22and control of any interceptors or treatment works owned or operated by such sanitary 71.23districts and joint boards, and who are employees of the commission on July 1, 1994, shall 71.24be employees of the council, and may at their option become members of the Minnesota 71.25State Retirement System or may continue as members of a public retirement association 71.26under chapter 422A or any other law, to which they belonged before such date, and shall 71.27retain all pension rights which they may have under such latter laws, and all other rights 71.28to which they are entitled by contract or law. Members of trades who are employed by 71.29the former Metropolitan Waste Control Commission, who have trade union pension 71.30coverage pursuant to a collective bargaining agreement, and who elected exclusion from 71.31coverage pursuant to section 
         473.512, or who are first employed after July 1, 1977, shall 71.32not be covered by the Minnesota State Retirement System. The council shall make the 71.33employer's contributions to pension funds of its employees. Such employees shall perform 71.34such duties as may be prescribed by the council. All funds of such sanitary districts and 71.35joint boards then on hand, and all subsequent collections of taxes, special assessments or 72.1service charges levied or imposed by or for such sanitary districts or joint boards shall 72.2be transferred to the council. The local government units otherwise entitled to such 72.3cash, taxes, assessments or service charges shall be credited with such amounts, and 72.4such credits shall be offset against any amounts to be paid by them to the council as 72.5provided in section 
         473.517. The former Metropolitan Waste Control Commission, and 72.6on July 1, 1994, the council shall succeed to and become vested by action of law with 72.7all right, title and interest in and to any property, real or personal, owned or operated 72.8by such sanitary districts and joint boards. Prior to that date the proper officers of such 72.9sanitary districts and joint boards, or the former Metropolitan Waste Control Commission, 72.10shall execute and deliver to the council all deeds, conveyances, bills of sale, and other 72.11documents or instruments required to vest in the council good and marketable title to all 72.12such real or personal property; provided that vesting of the title shall occur by operation 72.13of law and failure to execute and deliver the documents shall not affect the vesting of 72.14title in the former Metropolitan Waste Control Commission or the council on the dates 72.15indicated in this subdivision. The council shall become obligated to pay or assume all 72.16bonded or other debt and contract obligations incurred by the former Metropolitan Waste 72.17Control Commission, or by such sanitary districts and joint boards, or incurred by local 72.18government units for the acquisition or betterment of any interceptors or treatment works 72.19owned or operated by such sanitary districts or joint boards.  72.20    Sec. 40. Minnesota Statutes 2008, section 473.606, subdivision 5, is amended to read:72.21    Subd. 5. Employees, others, affirmative action; prevailing wage. The corporation 72.22shall have the power to appoint engineers and other consultants, attorneys, and such other 72.23officers, agents, and employees as it may see fit, who shall perform such duties and receive 72.24such compensation as the corporation may determine, and be removable at the pleasure of 72.25the corporation. The corporation shall adopt an affirmative action plan, which shall be 72.26submitted to the appropriate agency or office of the state for review and approval. The plan 72.27shall include a yearly progress report to the agency or office. Officers and employees of 72.28the corporation who cannot qualify and participate in the municipal employees retirement 72.29fund under chapter 422A, shall be separated from service at the retirement age applicable 72.30to officers or employees of the state of Minnesota in the classified service of the state civil 72.31service as provided in section 43A.34, or as the same may from time to time be amended, 72.32regardless of the provisions of the Veteran's Preference Act. Whenever the corporation 72.33performs any work within the limits of a city of the first class, or establishes a minimum 72.34wage for skilled or unskilled labor in the specifications or any contract for work within 73.1one of the cities, the rate of pay to such skilled and unskilled labor shall be the prevailing 73.2rate of wage for such labor in that city.  73.3    Sec. 41. Minnesota Statutes 2008, section 475.52, subdivision 6, is amended to read:73.4    Subd. 6.  Certain purposes. Any municipality may issue bonds for paying 73.5judgments against it; for refunding outstanding bonds; for funding floating indebtedness; 73.6for funding actuarial liabilities to pay postemployment benefits to employees or officers 73.7after their termination of service; or for funding all or part of the municipality's current 73.8and future unfunded liability for a pension or retirement fund or plan referred to in 73.9section 
         356.20, subdivision 2, as those liabilities are most recently computed pursuant 73.10to sections 
         356.215 and 
         356.216. The board of trustees or directors of a pension fund or73.11relief association referred to in section 
         69.77or chapter 422A must consent and must 73.12be a party to any contract made under this section with respect to the fund held by it 73.13for the benefit of and in trust for its members. For purposes of this section, the term 73.14"postemployment benefits" means benefits giving rise to a liability under Statement No. 73.1545 of the Governmental Accounting Standards Board. 73.16    Sec. 42. Minnesota Statutes 2009 Supplement, section 480.181, subdivision 2, is 73.17amended to read:73.18    Subd. 2. Election to retain insurance and benefits; retirement. (a) Before a 73.19person is transferred to state employment under this section, the person may elect to do 73.20either or both of the following:73.21(1) keep life insurance; hospital, medical, and dental insurance; and vacation and 73.22sick leave benefits and accumulated time provided by the county instead of receiving 73.23benefits from the state under the judicial branch personnel rules; or73.24(2) remain a member of the general employees retirement plan of the Public 73.25Employees Retirement Association or the Minneapolis employees retirement fundMERF 73.26division of the Public Employees Retirement Association instead of joining the Minnesota 73.27State Retirement System.73.28Employees who make an election under clause (1) remain on the county payroll, 73.29but the state shall reimburse the county on a quarterly basis for the salary and cost of the 73.30benefits provided by the county. The state shall make the employer contribution to the 73.31general employees retirement plan of the Public Employees Retirement Association or the 73.32employer contribution under section 
         422A.101 353.50, subdivision 1a 7, paragraphs (c) 73.33and (d), to the Minneapolis Employees Retirement FundMERF division of the Public 74.1Employees Retirement Association on behalf of employees who make an election under 74.2clause (2). 74.3(b) An employee who makes an election under paragraph (a), clause (1), may revoke 74.4the election, once, at any time, but if the employee revokes the election, the employee 74.5cannot make another election. An employee who makes an election under paragraph (a), 74.6clause (2), may revoke the election at any time within six months after the person becomes 74.7a state employee. Once an employee revokes this election, the employee cannot make 74.8another election.74.9(c) The Supreme Court, after consultation with the Judicial Council, the 74.10commissioner of management and budget, and the executive directors of the Public 74.11Employees Retirement Association and the Minnesota State Retirement Association, shall 74.12adopt procedures for making elections under this section.74.13(d) The Supreme Court shall notify all affected employees of the options available 74.14under this section. The executive directors of the Public Employees Retirement 74.15Association and the Minnesota State Retirement System shall provide counseling to 74.16affected employees on the effect of making an election to remain a member of the Public 74.17Employees Retirement Association.74.18    Sec. 43. EFFECTIVE DATE.74.19Sections 1 to 42 are effective June 30, 2010.