HF 2952

1st Committee Engrossment - 86th Legislature (2009 - 2010)

Posted on 03/19/2013 07:29 p.m.

1.1A bill for an act 1.2relating to retirement; Minnesota State Retirement System; Public Employees 1.3Retirement Association; Teachers Retirement Association; first class city 1.4teacher retirement fund associations; increasing certain contribution rates; 1.5authorizing certain postretirement adjustments; suspending certain postretirement 1.6adjustments; reducing certain postretirement adjustment increase rates; 1.7reducing interest rates on refunds; reducing deferred annuity augmentation 1.8rates; eliminating interest on reemployed annuitant earnings limitation deferred 1.9accounts; increasing certain vesting requirements; increasing certain early 1.10retirement reduction rates; reducing certain benefit accrual rates; extending 1.11certain amortization periods; requiring a retirement fund investment authority 1.12study; authorizing certain bylaw amendments;amending Minnesota Statutes 1.132008, sections 3A.02, subdivision 4; 352.113, subdivision 1; 352.115, subdivision 1.141; 352.12, subdivision 2; 352.22, subdivisions 2, 3; 352.72, subdivisions 1, 2; 1.15352.93, subdivisions 1, 2a, 3a; 352.931, subdivision 1; 352B.02, as amended; 1.16352B.08, subdivisions 1, 2a; 352B.11, subdivision 2b; 352B.30, subdivisions 1, 1.172; 352F.07; 353.01, by adding a subdivision; 353.27, subdivision 3b; 353.29, 1.18subdivision 1; 353.30, subdivision 1c; 353.32, subdivisions 1, 1a; 353.34, 1.19subdivisions 1, 2, 3; 353.651, subdivisions 1, 4; 353.657, subdivisions 1, 2a; 1.20353.71, subdivisions 1, 2; 353E.04, subdivisions 1, 4; 353E.07, subdivisions 1, 2; 1.21353F.03; 354.42, subdivision 3, by adding subdivisions; 354A.12, subdivisions 1.221, 3c; 354A.27, subdivisions 5, 6, by adding a subdivision; 354A.31, subdivision 1.231; 354A.35, subdivision 1; 354A.37, subdivisions 2, 3, 4; 356.215, subdivision 1.248; 356.30, subdivision 1; 356.302, subdivisions 3, 4, 5; 356.303, subdivision 1.252; 356.315, subdivision 5; 356.47, subdivision 3; Minnesota Statutes 2009 1.26Supplement, sections 352.75, subdivision 4; 352.95, subdivision 2; 353.27, 1.27subdivisions 2, 3; 353.33, subdivision 1; 353.65, subdivisions 2, 3; 354.42, 1.28subdivision 2; 354.47, subdivision 1; 354.49, subdivision 2; 354.55, subdivision 1.2911; 354A.12, subdivision 2a; 356.215, subdivision 11; 356.415, subdivision 1, 1.30by adding subdivisions; 423A.02, subdivision 3; repealing Minnesota Statutes 1.312008, section 354A.27, subdivision 1. 1.32BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 1.33    Section 1. Minnesota Statutes 2008, section 3A.02, subdivision 4, is amended to read: 1.34    Subd. 4. Deferred annuities augmentation. (a) The deferred retirement allowance 1.35of any former legislator must be augmented as provided herein. 2.1    (b) The required reserves applicable to the deferred retirement allowance, 2.2determined as of the date the benefit begins to accrue using an appropriate mortality table 2.3and an interest assumption of six percent, must be augmented from the first of the month 2.4following the termination of active service, or July 1, 1973, whichever is later, to the first 2.5day of the month in which the allowance begins to accrue, at the following annually 2.6compounded rate or rates: 2.7(1) five percent until January 1, 1981; 2.8(2) three percent from January 1, 1981, or from the first day of the month following 2.9the termination of active service, whichever is later, until January 1 of the year in which 2.10the former legislator attains age 55 new text begin or until January 1, 2012, whichever is earlier new text end ; and 2.11(3) five percent from the period end date under clause (2) to new text begin until new text end the effective date 2.12of retirement new text begin or until January 1, 2012, whichever is earlier; and new text end 2.13 new text begin (4) two percent after December 31, 2011 new text end . 2.14 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 2.15    Sec. 2. Minnesota Statutes 2008, section 352.113, subdivision 1, is amended to read: 2.16    Subdivision 1. Age and service requirements. new text begin (a) new text end An employee covered by the 2.17system, who is less than normal retirement age and who becomes totally and permanently 2.18disabled after three or more years of allowable service new text begin if employed before July 1, 2010, or new text end 2.19 new text begin after five or more years of allowable service if employed after June 30, 2010 new text end , is entitled to 2.20a disability benefit in an amount provided in subdivision 3. 2.21 new text begin (b) new text end If the disabled employee's state service has terminated at any time, the employee 2.22must have at least two years of allowable service after last becoming a state employee 2.23covered by the system. 2.24 new text begin (c) new text end Refunds may be repaid under section 352.23 before the effective accrual date of 2.25the disability benefit under subdivision 2. 2.26 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 2.27    Sec. 3. Minnesota Statutes 2008, section 352.115, subdivision 1, is amended to read: 2.28    Subdivision 1. Age and service requirements. After separation from state service, 2.29any employee (1) who has attained the age of at least 55 years and who is entitled to 2.30credit for at least three years allowable service new text begin if employed before July 1, 2010, or after new text end 2.31 new text begin five or more years of allowable service if employed after June 30, 2010 new text end , or (2) who has 2.32received credit for at least 30 years allowable service regardless of age, is entitled upon 2.33application to a retirement annuity. 3.1 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 3.2    Sec. 4. Minnesota Statutes 2008, section 352.12, subdivision 2, is amended to read: 3.3    Subd. 2. Surviving spouse benefit. (a) If an employee or former employee has 3.4credit for at least three years allowable service new text begin if the employee was employed before July new text end 3.5 new text begin 1, 2010, or for at least five years of allowable service if the employee was employed new text end 3.6 new text begin after June 30, 2010, new text end and dies before an annuity or disability benefit has become payable, 3.7notwithstanding any designation of beneficiary to the contrary, the surviving spouse of the 3.8employee may elect to receive, in lieu of the refund with interest under subdivision 1, an 3.9annuity equal to the joint and 100 percent survivor annuity which the employee or former 3.10employee could have qualified for on the date of death. 3.11    (b) If the employee was under age 55 and has credit for at least 30 years of allowable 3.12service on the date of death, the surviving spouse may elect to receive a 100 percent joint 3.13and survivor annuity based on the age of the employee and surviving spouse on the date 3.14of death. The annuity is payable using the full early retirement reduction under section 3.15352.116, subdivision 1 , paragraph (a), to age 55 and one-half of the early retirement 3.16reduction from age 55 to the age payment begins. 3.17    (c) If the employee was under age 55 and has credit for at least three years of 3.18allowable service credit on the date of death new text begin if the employee was employed before July 1, new text end 3.19 new text begin 2010, or for at least five years of allowable service if the employee was employed after new text end 3.20 new text begin June 30, 2010, new text end but did not yet qualify for retirement, the surviving spouse may elect 3.21to receive a 100 percent joint and survivor annuity based on the age of the employee 3.22and surviving spouse at the time of death. The annuity is payable using the full early 3.23retirement reduction under section 352.116, subdivision 1 or 1a, to age 55 and one-half of 3.24the early retirement reduction from age 55 to the age payment begins. 3.25    (d) The surviving spouse eligible for benefits under paragraph (a) may apply for the 3.26annuity at any time after the date on which the employee or former employee would 3.27have attained the required age for retirement based on the allowable service earned. 3.28The surviving spouse eligible for surviving spouse benefits under paragraph (b) or (c) 3.29may apply for the annuity at any time after the employee's death. The annuity must be 3.30computed under sections 352.115, subdivisions 1, 2, and 3, and 352.116, subdivisions 1, 3.311a, and 3 . Sections 352.22, subdivision 3, and 352.72, subdivision 2, apply to a deferred 3.32annuity or surviving spouse benefit payable under this subdivision. The annuity must cease 3.33with the last payment received by the surviving spouse in the lifetime of the surviving 3.34spouse, or upon expiration of a term certain benefit payment to a surviving spouse under 3.35subdivision 2a. An amount equal to the excess, if any, of the accumulated contributions 4.1credited to the account of the deceased employee in excess of the total of the benefits paid 4.2and payable to the surviving spouse must be paid to the deceased employee's or former 4.3employee's last designated beneficiary or, if none, as specified under subdivision 1. 4.4    (e) Any employee or former employee may request in writing, with the signed 4.5consent of the spouse, that this subdivision not apply and that payment be made only to a 4.6designated beneficiary as otherwise provided by this chapter. 4.7 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 4.8    Sec. 5. Minnesota Statutes 2008, section 352.22, subdivision 2, is amended to read: 4.9    Subd. 2. Amount of refund. Except as provided in subdivision 3, the refund 4.10payable to a person who ceased to be a state employee by reason of a termination of state 4.11service is an amount equal to employee accumulated contributions plus interest at the rate 4.12of six percent per year compounded daily from the date that the contribution was made 4.13until new text begin June 30, 2011, or until new text end the date on which the refund is paid new text begin , whichever is earlier, and new text end 4.14 new text begin at the rate of four percent per year compounded daily from the date that the contribution new text end 4.15 new text begin was made or from July 1, 2011, whichever is later, until the date on which the refund is new text end 4.16 new text begin paid new text end . Included with the refund is any interest paid as part of repayment of a past refund, 4.17plus interest thereon from the date of repayment. 4.18 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 4.19    Sec. 6. Minnesota Statutes 2008, section 352.22, subdivision 3, is amended to read: 4.20    Subd. 3. Deferred annuity. (a) An employee who has at least three years of 4.21allowable service new text begin if employed before July 1, 2010, or who has at least five years of new text end 4.22 new text begin allowable service if employed after June 30, 2010, new text end when termination occurs may elect 4.23to leave the accumulated contributions in the fund and thereby be entitled to a deferred 4.24retirement annuity. The annuity must be computed under the law in effect when state 4.25service terminated, on the basis of the allowable service credited to the person before 4.26the termination of service. 4.27(b) An employee on layoff or on leave of absence without pay, except a leave of 4.28absence for health reasons, and who does not return to state service must have an annuity, 4.29deferred annuity, or other benefit to which the employee may become entitled computed 4.30under the law in effect on the employee's last working day. 4.31(c) No application for a deferred annuity may be made more than 60 days before 4.32the time the former employee reaches the required age for entitlement to the payment of 4.33the annuity. The deferred annuity begins to accrue no earlier than 60 days before the date 5.1the application is filed in the office of the system, but not (1) before the date on which 5.2the employee reaches the required age for entitlement to the annuity nor (2) before the 5.3day following the termination of state service in a position which is not covered by the 5.4retirement system. 5.5(d) Application for the accumulated contributions left on deposit with the fund may 5.6be made at any time following the date of the termination of service. 5.7 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 5.8    Sec. 7. Minnesota Statutes 2008, section 352.72, subdivision 1, is amended to read: 5.9    Subdivision 1. Entitlement to annuity. (a) Any person who has been an employee 5.10covered by a retirement system listed in paragraph (b) is entitled when qualified to an 5.11annuity from each fund if total allowable service in all funds or in any two of these funds 5.12totals three or more years new text begin if employed before July 1, 2010, or totals five or more years new text end 5.13 new text begin if employed after June 30, 2010 new text end . 5.14(b) This section applies to the Minnesota State Retirement System, the Public 5.15Employees Retirement Association including the Public Employees Retirement 5.16Association police and fire fund, the Teachers Retirement Association, the State Patrol 5.17Retirement Association, or any other public employee retirement system in the state with 5.18a similar provision, except as noted in paragraph (c). 5.19(c) This section does not apply to other funds providing benefits for police officers 5.20or firefighters. 5.21(d) No portion of the allowable service upon which the retirement annuity from 5.22one fund is based shall be again used in the computation for benefits from another fund. 5.23No refund may have been taken from any one of these funds since service entitling the 5.24employee to coverage under the system or the employee's membership in any of the 5.25associations last terminated. The annuity from each fund must be determined by the 5.26appropriate provisions of the law except that the requirement that a person must have at 5.27least three new text begin a specific number of new text end years new text begin of new text end allowable service in the respective system or 5.28association does not apply for the purposes of this section if the combined service in two 5.29or more of these funds equals three or more years new text begin at least the longest period of allowable new text end 5.30 new text begin service of any of the applicable retirement plans new text end . 5.31 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 5.32    Sec. 8. Minnesota Statutes 2008, section 352.72, subdivision 2, is amended to read: 6.1    Subd. 2. Computation of deferred annuity. (a) The deferred annuity, if any, 6.2accruing under subdivision 1, or section 352.22, subdivision 3, must be computed as 6.3provided in section 352.22, subdivision 3, on the basis of allowable service before 6.4termination of state service and augmented as provided herein. The required reserves 6.5applicable to a deferred annuity or to an annuity for which a former employee was eligible 6.6but had not applied or to any deferred segment of an annuity must be determined as of 6.7the date the benefit begins to accrue and augmented by interest compounded annually 6.8from the first day of the month following the month in which the employee ceased to be 6.9a state employee, or July 1, 1971, whichever is later, to the first day of the month in 6.10which the annuity begins to accrue. The rates of interest used for this purpose must be 6.11five percent compounded annually until January 1, 1981, and three percent compounded 6.12annually thereafter until January 1 of the year following the year in which the former 6.13employee attains age 55 new text begin or until January 1, 2012, whichever is earlier new text end , and from that date 6.14 new text begin the January 1 next following the attainment of age 55 new text end to the effective date of retirement new text begin or new text end 6.15 new text begin until January 1, 2012, whichever is earlier new text end , the rate is five percent compounded annually if 6.16the employee became an employee before July 1, 2006, and at 2.5 percent compounded 6.17annually new text begin until January 1, 2012, new text end if the employee becomes an employee after June 30, 2006 new text begin , new text end 6.18 new text begin and two percent compounded annually after December 31, 2011, irrespective of when the new text end 6.19 new text begin employee became a state employee new text end . If a person has more than one period of uninterrupted 6.20service, the required reserves related to each period must be augmented by interest under 6.21this subdivision. The sum of the augmented required reserves so determined is the present 6.22value of the annuity. "Uninterrupted service" for the purpose of this subdivision means 6.23periods of covered employment during which the employee has not been separated from 6.24state service for more than two years. If a person repays a refund, the service restored by 6.25the repayment must be considered continuous with the next period of service for which the 6.26employee has credit with this system. The formula percentages used for each period of 6.27uninterrupted service must be those applicable to a new employee. The mortality table 6.28and interest assumption used to compute the annuity must be those in effect when the 6.29employee files application for annuity. This section does not reduce the annuity otherwise 6.30payable under this chapter. 6.31(b) The retirement annuity or disability benefit of, or the survivor benefit payable on 6.32behalf of, a former state employee who terminated service before July 1, 1997, which is 6.33not first payable until after June 30, 1997, must be increased on an actuarial equivalent 6.34basis to reflect the change in the postretirement interest rate actuarial assumption under 6.35section 356.215, subdivision 8, from five percent to six percent under a calculation 7.1procedure and the tables adopted by the board and approved by the actuary retained under 7.2section 356.214. 7.3 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 7.4    Sec. 9. Minnesota Statutes 2009 Supplement, section 352.75, subdivision 4, is 7.5amended to read: 7.6    Subd. 4. Existing deferred retirees. Any former member of the former 7.7Metropolitan Transit Commission-Transit Operating Division employees retirement 7.8fund is entitled to a retirement annuity from the Minnesota State Retirement System if 7.9the employee: 7.10(1) is not an active employee of the Transit Operating Division of the former 7.11Metropolitan Transit Commission on July 1, 1978; (2) has at least ten years of active 7.12continuous service with the Transit Operating Division of the former Metropolitan 7.13Transit Commission as defined by the former Metropolitan Transit Commission-Transit 7.14Operating Division employees retirement plan document in effect on December 31, 1977; 7.15(3) has not received a refund of contributions; (4) has not retired or begun receiving an 7.16annuity or benefit from the former Metropolitan Transit Commission-Transit Operating 7.17Division employees retirement fund; (5) is at least 55 years old; and (6) submits a valid 7.18application for a retirement annuity to the executive director of the Minnesota State 7.19Retirement System. 7.20The person is entitled to a retirement annuity in an amount equal to the normal 7.21old age retirement allowance calculated under the former Metropolitan Transit 7.22Commission-Transit Operating Division employees retirement fund plan document in 7.23effect on December 31, 1977, subject to an early retirement reduction or adjustment in 7.24amount on account of retirement before the normal retirement age specified in that former 7.25Metropolitan Transit Commission-Transit Operating Division employees retirement fund 7.26plan document. 7.27The deferred retirement annuity of any person to whom this subdivision applies 7.28must be augmented. The required reserves applicable to the deferred retirement annuity, 7.29determined as of the date the allowance begins to accrue using an appropriate mortality 7.30table and an interest assumption of five percent, must be augmented by interest at the 7.31rate of five percent per year compounded annually from January 1, 1978, to January 1, 7.321981, and three percent per year compounded annually from January 1, 1981, new text begin until the new text end 7.33 new text begin date that the annuity begins to accrue or June 30, 2011, whichever is earlier, and two new text end 7.34 new text begin percent after June 30, 2011, new text end to the first day of the month in which the annuity begins to 7.35accrue. After the commencement of the retirement annuity, the annuity is eligible for 8.1postretirement adjustments under section 356.415. On applying for a retirement annuity 8.2under this subdivision, the person is entitled to elect a joint and survivor optional annuity 8.3under section 352.116, subdivision 3. 8.4 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 8.5    Sec. 10. Minnesota Statutes 2008, section 352.93, subdivision 1, is amended to read: 8.6    Subdivision 1. Basis of annuity; when to apply. After separation from state 8.7service, an employee covered under section 352.91 who has reached age 55 years and has 8.8credit for at least three years of covered correctional service or a combination of covered 8.9correctional service and general new text begin state new text end employees state retirement plan new text begin allowable new text end service 8.10 new text begin if first employed as a state employee before July 1, 2010, or has credit for at least ten new text end 8.11 new text begin years of covered correctional service or a combination of covered correctional service new text end 8.12 new text begin and general state employees retirement plan allowable service if first employed as a state new text end 8.13 new text begin employee after June 30, 2010, new text end is entitled upon application to a retirement annuity under 8.14this section, based only on covered correctional employees' service. Application may be 8.15made no earlier than 60 days before the date the employee is eligible to retire by reason of 8.16both age and service requirements. 8.17 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 8.18    Sec. 11. Minnesota Statutes 2008, section 352.93, subdivision 2a, is amended to read: 8.19    Subd. 2a. Early retirement. Any covered correctional employee who becomes at 8.20least 50 years old and who has at least three years of allowable service new text begin if first employed new text end 8.21 new text begin as a correctional state employee before July 1, 2010, or has credit for at least ten years new text end 8.22 new text begin of allowable service if first employed as a correctional state employee after June 30, new text end 8.23 new text begin 2010, new text end is entitled upon application to a reduced retirement annuity equal to the annuity 8.24calculated under subdivision 2, reduced by two-tenths of one percent for each month that 8.25the correctional employee is under age 55 at the time of retirement new text begin if first employed as new text end 8.26 new text begin a correctional state employee before July 1, 2010, and if retired before July 1, 2015, or new text end 8.27 new text begin reduced by 0.417 percent for each month that the correctional employee is under age 55 new text end 8.28 new text begin at the time of retirement if first employed as a correctional state employee after June 30, new text end 8.29 new text begin 2010, or if first employed as a correctional state employee before July 1, 2010, and if new text end 8.30 new text begin retired after June 30, 2015 new text end . 8.31 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 8.32    Sec. 12. Minnesota Statutes 2008, section 352.93, subdivision 3a, is amended to read: 9.1    Subd. 3a. Optional annuities. The board may establish optional annuity forms to 9.2pay a higher amount from the date of retirement until an employee is first eligible to draw 9.3Social Security benefits new text begin , reaches age 65, new text end or up to new text begin reaches new text end the age the employee is eligible 9.4to receive unreduced Social Security benefits, at which time the monthly benefits must be 9.5reduced. The optional annuity forms must be actuarially equivalent to the normal single 9.6life annuity form provided in subdivision 2. The optional annuity forms must be approved 9.7 new text begin certified as actuarially equivalent new text end by the actuary retained under section 356.214. 9.8 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 9.9    Sec. 13. Minnesota Statutes 2008, section 352.931, subdivision 1, is amended to read: 9.10    Subdivision 1. Surviving spouse benefit. (a) If the correctional employee was at 9.11least age 50, has credit for at least three years of allowable service new text begin if first employed as new text end 9.12 new text begin a correctional state employee before July 1, 2010, or has credit for at least ten years of new text end 9.13 new text begin allowable service if first employed as a correctional state employee after June 30, 2010 new text end , 9.14and dies before an annuity or disability benefit has become payable, notwithstanding any 9.15designation of beneficiary to the contrary, the surviving spouse of the employee may 9.16elect to receive, in lieu of the refund under section 352.12, subdivision 1, an annuity for 9.17life equal to the joint and 100 percent survivor annuity which the employee could have 9.18qualified for had the employee terminated service on the date of death. The election 9.19may be made at any time after the date of death of the employee. The surviving spouse 9.20benefit begins to accrue as of the first of the month next following the date on which 9.21the application for the benefit was filed. 9.22    (b) If the employee was under age 50, dies, and had credit for at least three years 9.23of allowable service credit on the date of death new text begin if first employed as a correctional state new text end 9.24 new text begin employee before July 1, 2010, or had credit for at least ten years of allowable service on new text end 9.25 new text begin the date of death if first employed as a correctional state employee after June 30, 2010, new text end but 9.26did not yet qualify for retirement, the surviving spouse may elect to receive a 100 percent 9.27joint and survivor annuity based on the age of the employee and surviving spouse at the 9.28time of death. The annuity is payable using the early retirement reduction under section 9.29352.93, subdivision 2a , to age 50, and one-half of the early retirement reduction from age 9.3050 to the age payment begins. The surviving spouse eligible for surviving spouse benefits 9.31under this paragraph may apply for the annuity at any time after the employee's death. 9.32Sections 352.22, subdivision 3, and 352.72, subdivision 2, apply to a deferred annuity or 9.33surviving spouse benefit payable under this subdivision. 9.34    (c) The annuity must cease with the last payment received by the surviving spouse 9.35in the lifetime of the surviving spouse. Any employee may request in writing, with the 10.1signed consent of the spouse, that this subdivision not apply and that payment be made 10.2only to a designated beneficiary as otherwise provided by this chapter. 10.3 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 10.4    Sec. 14. Minnesota Statutes 2009 Supplement, section 352.95, subdivision 2, is 10.5amended to read: 10.6    Subd. 2. Regular disability; computation of benefit. A covered correctional 10.7employee who was hired before July 1, 2009, after rendering at least one year of covered 10.8correctional service, or a covered correctional employee who was first hired after June 10.930, 2009, after rendering at least three years of covered correctional plan service new text begin if first new text end 10.10 new text begin employed as a correctional state employee before July 1, 2010, or after rendering at least new text end 10.11 new text begin ten years of covered correctional plan service if first employed as a correctional state new text end 10.12 new text begin employee after June 30, 2010 new text end , and who is determined to have a regular disability, physical 10.13or psychological, as defined under section 352.01, subdivision 17c, is entitled to a regular 10.14disability benefit. The regular disability benefit must be based on covered correctional 10.15service only. The regular disability benefit must be computed as provided in section 10.16352.93, subdivisions 1 and 2 . The regular disability benefit of a covered correctional 10.17employee who was first hired before July 1, 2009, and who is determined to have a regular 10.18disability, physical or psychological, under this subdivision must be computed as though 10.19the employee had at least 15 years of covered correctional service. 10.20 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 10.21    Sec. 15. Minnesota Statutes 2008, section 352B.02, as amended by Laws 2009, chapter 10.22101, article 2, section 109; and Laws 2009, chapter 169, article 1, section 23; article 2, 10.23section 16; and article 4, sections 3 and 4, is amended to read: 10.24352B.02 STATE PATROL RETIREMENT FUND. 10.25    Subdivision 1. Fund created; membership. A State Patrol retirement fund 10.26is established. Its membership consists of all persons defined in section 352B.011, 10.27subdivision 10 . 10.28    Subd. 1a. Member contributions. (a) The member contribution is percent new text begin new text end 10.29 new text begin the following percentage new text end of the member's salary. new text begin : new text end 10.30 10.31 new text begin (1) before the first day of the first pay new text end new text begin period beginning after July 1, 2011 new text end new text begin 10.40 percent new text end 10.32 10.33 new text begin (2) on or after the first day of the first new text end new text begin pay period beginning after July 1, 2011 new text end new text begin 12.40 percent new text end 11.1(b) These contributions must be made by deduction from salary as provided in 11.2section 352.04, subdivision 4. 11.3    Subd. 1b. Salary deductions. Member contribution amounts must be deducted each 11.4pay period by the department head, who shall have the total amount of the deductions paid 11.5to the commissioner of management and budget for deposit in the State Patrol retirement 11.6fund, and have a detailed report of all deductions made each pay period to the executive 11.7director of the Minnesota State Retirement System. 11.8    Subd. 1c. Employer contributions. (a) In addition to member contributions, 11.9department heads shall pay a sum equal to percent new text begin the specified percentage new text end of the 11.10salary upon which deductions were made, which constitutes the employer contribution 11.11to the fund. new text begin as follows: new text end 11.12 11.13 new text begin (1) before the first day of the first pay new text end new text begin period beginning after July 1, 2011 new text end new text begin 15.60 percent new text end 11.14 11.15 new text begin (2) on or after the first day of the first new text end new text begin pay period beginning after July 1, 2011 new text end new text begin 18.60 percent new text end 11.16(b) Department contributions must be paid out of money appropriated to departments 11.17for this purpose. 11.18    Subd. 1d. Fund revenue and expenses. The amounts provided for in this section 11.19must be credited to the State Patrol retirement fund. All money received must be deposited 11.20by the commissioner of management and budget in the State Patrol retirement fund. The 11.21fund must be used to pay the administrative expenses of the retirement fund, and the 11.22benefits and annuities provided in this chapter. 11.23    Subd. 1e. Audit; new text begin regular new text end actuarial valuation new text begin ; supplemental valuations new text end . new text begin (a) new text end The 11.24legislative auditor shall audit the fund. 11.25 new text begin (b) new text end Any actuarial valuation of the fund required under section 356.215 must be 11.26prepared by the actuary retained under section 356.214. 11.27 new text begin (c) new text end Any approved actuary retained by the executive director under section 352.03, 11.28subdivision 6 , may perform actuarial valuations and experience studies to supplement 11.29those performed by the actuary retained under section 356.214. Any supplemental 11.30actuarial valuation or experience studies must be filed with the executive director of the 11.31Legislative Commission on Pensions and Retirement. 11.32 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 11.33    Sec. 16. Minnesota Statutes 2008, section 352B.08, subdivision 1, is amended to read: 11.34    Subdivision 1. Eligibility; when to apply; accrual. new text begin (a) new text end Every member who is 11.35credited with three or more years of allowable service new text begin if first employed before July 1, new text end 12.1 new text begin 2010, or with at least five years of allowable service if first employed after June 30, 2010, new text end 12.2is entitled to separate from state service and upon becoming 50 years old, is entitled to 12.3receive a life annuity, upon separation from state service. 12.4 new text begin (b) new text end Members shall new text begin must new text end apply for an annuity in a form and manner prescribed by the 12.5executive director. 12.6 new text begin (c) new text end No application may be made more than 90 days before the date the member is 12.7eligible to retire by reason of both age and service requirements. 12.8 new text begin (d) new text end An annuity begins to accrue no earlier than 180 days before the date the 12.9application is filed with the executive director. 12.10 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 12.11    Sec. 17. Minnesota Statutes 2008, section 352B.08, subdivision 2a, is amended to read: 12.12    Subd. 2a. Early retirement. Any member who has become at least 50 years old and 12.13who has at least three years of allowable service new text begin if first employed before July 1, 2010, or new text end 12.14 new text begin who has at least five years of allowable service if first employed after June 30, 2010, new text end is 12.15entitled upon application to a reduced retirement annuity equal to the annuity calculated 12.16under subdivision 2, reduced by one-tenth of one percent for each month that the member 12.17is under age 55 at the time of retirement new text begin if first employed before July 1, 2010, or reduced new text end 12.18 new text begin by two-tenths of one percent for each month that the member is under age 55 at the time of new text end 12.19 new text begin retirement if first employed after June 30, 2010 new text end . 12.20 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 12.21    Sec. 18. Minnesota Statutes 2008, section 352B.11, subdivision 2b, is amended to read: 12.22    Subd. 2b. Surviving spouse benefit eligibility. (a) If an active member with three or 12.23more years of allowable service new text begin if first employed before July 1, 2010, or with at least five new text end 12.24 new text begin years of allowable service if first employed after June 30, 2010, new text end dies before attaining age 12.2555, the surviving spouse is entitled to the benefit specified in subdivision 2c, paragraph (b). 12.26(b) If an active member with less than three years of allowable service new text begin if first new text end 12.27 new text begin employed before July 1, 2010, or with fewer than five years of allowable service if first new text end 12.28 new text begin employed after June 30, 2010, new text end dies at any age, the surviving spouse is entitled to receive 12.29the benefit specified in subdivision 2c, paragraph (c). 12.30(c) If an active member with three or more years of allowable service new text begin if first new text end 12.31 new text begin employed before July 1, 2010, or with at least five years of allowable service if first new text end 12.32 new text begin employed after June 30, 2010, new text end dies on or after attaining exact age 55, the surviving spouse 12.33is entitled to receive the benefits specified in subdivision 2c, paragraph (d). 13.1(d) If a disabilitant dies while receiving a disability benefit under section 352B.10 or 13.2before the benefit under that section commenced, and an optional annuity was not elected 13.3under section 352B.10, subdivision 5, the surviving spouse is entitled to receive the benefit 13.4specified in subdivision 2c, paragraph (b). 13.5(e) If a former member with three or more years of allowable service new text begin if first new text end 13.6 new text begin employed before July 1, 2010, or with at least five years of allowable service if first new text end 13.7 new text begin employed after June 30, 2010 new text end , who terminated from service and has not received a refund 13.8or commenced receipt of any other benefit provided by this chapter, dies, the surviving 13.9spouse is entitled to receive the benefit specified in subdivision 2c, paragraph (e). 13.10(f) If a former member with less than three years of allowable service new text begin if first new text end 13.11 new text begin employed before July 1, 2010, or with fewer than five years of allowable service if first new text end 13.12 new text begin employed after June 30, 2010 new text end , who terminated from service and has not received a refund 13.13or commenced receipt of any other benefit, if applicable, provided by this chapter, dies, the 13.14surviving spouse is entitled to receive the refund specified in subdivision 2c, paragraph (f). 13.15 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 13.16    Sec. 19. Minnesota Statutes 2008, section 352B.30, subdivision 1, is amended to read: 13.17    Subdivision 1. Entitlement to annuity. Any person who has been an employee 13.18covered by the Minnesota State Retirement System, or a member of the Public Employees 13.19Retirement Association including the Public Employees Retirement Association Police 13.20and Fire Fund, or the Teachers Retirement Association, or the State Patrol retirement fund, 13.21or any other public employee retirement system in Minnesota having a like provision but 13.22excluding all other funds providing benefits for police or firefighters is entitled when 13.23qualified to an annuity from each fund if total allowable service in all funds or in any two 13.24of these funds totals three or more new text begin the number of new text end years new text begin of allowable service required by new text end 13.25 new text begin the applicable retirement plan with the longest vesting period for the person new text end . No part of 13.26the allowable service upon which the retirement annuity from one fund is based may 13.27again be used in the computation for benefits from another fund. The member must not 13.28have taken a refund from any one of these funds since service entitling the member to 13.29coverage under the system or membership in any of the associations last terminated. 13.30The annuity from each fund must be determined by the appropriate law except that the 13.31requirement that a person must have at least three new text begin a specific number of new text end years allowable 13.32service in the respective system or association does not apply for the purposes of this 13.33section if the combined service in two or more of these funds equals three or more new text begin the new text end 13.34 new text begin number of new text end years new text begin of allowable service required by the applicable retirement plan with new text end 13.35 new text begin the longest vesting period for the person new text end . 14.1 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 14.2    Sec. 20. Minnesota Statutes 2008, section 352B.30, subdivision 2, is amended to read: 14.3    Subd. 2. Computation of deferred annuity. Deferred annuities must be computed 14.4according to this chapter on the basis of allowable service before termination of service 14.5and augmented as provided in this chapter. The required reserves applicable to a deferred 14.6annuity must be augmented by interest compounded annually from the first day of the 14.7month following the month in which the member terminated service, or July 1, 1971, 14.8whichever is later, to the first day of the month in which the annuity begins to accrue. The 14.9rates of interest used for this purpose shall new text begin must new text end be five percent per year compounded 14.10annually until January 1, 1981, and after that date three percent per year compounded 14.11annually new text begin after January 1, 1981, until January 1, 2012, new text end if the employee became an employee 14.12before July 1, 2006, and at 2.5 percent compounded annually if the employee becomes 14.13an employee after June 30, 2006 new text begin , and two percent per year compounded annually after new text end 14.14 new text begin December 31, 2011, irrespective of when the employee was first employed new text end . The mortality 14.15table and interest assumption used to compute the annuity shall new text begin must new text end be those in effect 14.16when the member files application for annuity. 14.17 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 14.18    Sec. 21. Minnesota Statutes 2008, section 352F.07, is amended to read: 14.19352F.07 EFFECT ON REFUND. 14.20Notwithstanding any provision of chapter 352 to the contrary, terminated hospital 14.21employees may receive a refund of employee accumulated contributions plus interest 14.22at the rate of six percent per year compounded annually in accordance with Minnesota 14.23Statutes 1994, section 352.22, subdivision 2, at any time after the transfer of employment 14.24to Fairview, University of Minnesota Physicians, or University Affiliated Family 14.25Physicians. If a terminated hospital employee has received a refund from a pension plan 14.26enumerated in section 356.30, subdivision 3, the person may not repay that refund unless 14.27the person again becomes a member of one of those enumerated plans and complies 14.28with section 356.30, subdivision 2. 14.29 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 14.30    Sec. 22. Minnesota Statutes 2008, section 353.01, is amended by adding a subdivision 14.31to read: 15.1     new text begin Subd. 47. new text end new text begin Vesting. new text end new text begin (a) "Vesting" means obtaining a nonforfeitable entitlement new text end 15.2 new text begin to an annuity or benefit from a retirement plan administered by the Public Employees new text end 15.3 new text begin Retirement Association by having credit for sufficient allowable service under paragraph new text end 15.4 new text begin (b) or (c), whichever applies. new text end 15.5 new text begin (b) For purposes of qualifying for an annuity or benefit as a basic or coordinated plan new text end 15.6 new text begin member of the general employees retirement plan of the Public Employees Retirement new text end 15.7 new text begin Association: new text end 15.8 new text begin (1) a member who first became a public employee before July 1, 2010, is vested new text end 15.9 new text begin when the person has accrued credit for not less than three years of allowable service as new text end 15.10 new text begin defined under subdivision 16; and new text end 15.11 new text begin (2) a member who first becomes a public employee after June 30, 2010, is vested new text end 15.12 new text begin when the person has accrued credit for not less than five years of allowable service new text end 15.13 new text begin as defined under subdivision 16. new text end 15.14 new text begin (c) For purposes of qualifying for an annuity or benefit as a member of the police new text end 15.15 new text begin and fire plan or a member of the local government correctional employees retirement plan: new text end 15.16 new text begin (1) a member who first became a public employee before July 1, 2010, is vested new text end 15.17 new text begin when the person has accrued credit for not less than three years of allowable service as new text end 15.18 new text begin defined under subdivision 16; and new text end 15.19 new text begin (2) a member who first becomes a public employee after June 30, 2010, is vested new text end 15.20 new text begin at the following percentages when the person has accrued credited allowable service as new text end 15.21 new text begin defined under subdivision 16, as follows: new text end 15.22 new text begin (i) 50 percent after five years; new text end 15.23 new text begin (ii) 60 percent after six years; new text end 15.24 new text begin (iii) 70 percent after seven years; new text end 15.25 new text begin (iv) 80 percent after eight years; new text end 15.26 new text begin (v) 90 percent after nine years; and new text end 15.27 new text begin (vi) 100 percent after ten years. new text end 15.28 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 15.29    Sec. 23. Minnesota Statutes 2009 Supplement, section 353.27, subdivision 2, is 15.30amended to read: 15.31    Subd. 2. Employee contribution. (a) For a basic member, the employee 15.32contribution is 9.10 percent of salary. For a coordinated member, the employee 15.33contribution is six percent new text begin the following percentage new text end of salary plus any contribution rate 15.34adjustment under subdivision 3b. new text begin : new text end 16.1 new text begin Effective before January 1, 2011 new text end new text begin 6.00 new text end 16.2 new text begin Effective after December 31, 2010 new text end new text begin 6.25 new text end 16.3(b) These contributions must be made by deduction from salary as defined in section 16.4353.01, subdivision 10 , in the manner provided in subdivision 4. If any portion of a 16.5member's salary is paid from other than public funds, the member's employee contribution 16.6must be based on the total salary received by the member from all sources. 16.7 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 16.8    Sec. 24. Minnesota Statutes 2009 Supplement, section 353.27, subdivision 3, is 16.9amended to read: 16.10    Subd. 3. Employer contribution. (a) For a basic member, the employer 16.11contribution is 9.10 percent of salary. For a coordinated member, the employer 16.12contribution is six percent new text begin the following percentage new text end of salary plus any contribution rate 16.13adjustment under subdivision 3b. new text begin : new text end 16.14 new text begin Effective before January 1, 2011 new text end new text begin 6.00 new text end 16.15 new text begin Effective after December 31, 2010 new text end new text begin 6.25 new text end 16.16(b) This contribution must be made from funds available to the employing 16.17subdivision by the means and in the manner provided in section 353.28. 16.18 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 16.19    Sec. 25. Minnesota Statutes 2008, section 353.27, subdivision 3b, is amended to read: 16.20    Subd. 3b. Change in employee and employer contributions in certain instances. 16.21(a) For purposes of this section, new text begin : new text end 16.22 new text begin (1) new text end a contribution sufficiency exists if the total of the employee contribution under 16.23subdivision 2, the employer contribution under subdivision 3, the additional employer 16.24contribution under subdivision 3a, and any additional contribution previously imposed 16.25under this subdivision exceeds the total of the normal cost, the administrative expenses, 16.26and the amortization contribution of the retirement plan as reported in the most recent 16.27actuarial valuation of the retirement plan prepared by the actuary retained under section 16.28356.214 and prepared under section 356.215 and the standards for actuarial work of the 16.29Legislative Commission on Pensions and Retirement. For purposes of this section, new text begin ; and new text end 16.30 new text begin (2) new text end a contribution deficiency exists if the total of the employee contributions under 16.31subdivision 2, the employer contributions under subdivision 3, the additional employer 16.32contribution under subdivision 3a, and any additional contribution previously imposed 16.33under this subdivision is less than the total of the normal cost, the administrative expenses, 17.1and the amortization contribution of the retirement plan as reported in the most recent 17.2actuarial valuation of the retirement plan prepared by the actuary retained under section 17.3356.214 and prepared under section 356.215 and the standards for actuarial work of the 17.4Legislative Commission on Pensions and Retirement. 17.5(b) Employee and employer contributions under subdivisions 2 and 3 must be 17.6adjusted: 17.7(1) if, new text begin on or new text end after July 1, 2010, the regular actuarial valuations new text begin valuation new text end of the 17.8general employees retirement plan of the Public Employees Retirement Association under 17.9section 356.215 indicate new text begin indicates new text end that there is a contribution sufficiency under paragraph 17.10(a) equal to or greater than 0.5 new text begin one new text end percent of covered payroll new text begin and that the sufficiency new text end 17.11 new text begin has existed new text end for new text begin at least new text end two consecutive years, the coordinated program employee and 17.12employer contribution rates must be decreased as determined under paragraph (c) to a 17.13level such that the sufficiency equals new text begin is new text end no more new text begin greater new text end than 0.25 new text begin one new text end percent of covered 17.14payroll based on the most recent actuarial valuation; or 17.15(2) if, new text begin on or new text end after July 1, 2010, the regular actuarial valuations new text begin valuation new text end of the 17.16general employees retirement plan of the Public Employees Retirement Association under 17.17section 356.215 indicate new text begin indicates new text end that there is a new text begin contribution new text end deficiency equal to or greater 17.18than 0.5 percent of covered payroll new text begin and that the deficiency has existed new text end for new text begin at least new text end two 17.19consecutive years, the coordinated program employee and employer contribution rates 17.20must be increased as determined under paragraph (c) new text begin (d) new text end to a level such that no deficiency 17.21exists based on the most recent actuarial valuation. 17.22(c) The contribution rate increase or decrease must be determined by the executive 17.23director of the Public Employees Retirement Association, must be reported to the chair 17.24and the executive director of the Legislative Commission on Pensions and Retirement 17.25on or before the next February 1, and, if the Legislative Commission on Pensions and 17.26Retirement does not recommend against the rate change or does not recommend a 17.27modification in the rate change, is effective on the next July 1 following the determination 17.28by the executive director that a contribution deficiency or sufficiency has existed for 17.29two consecutive fiscal years based on the most recent actuarial valuations under section 17.30. If the actuarially required contribution exceeds or is less than the total support 17.31provided by the combined employee and employer contribution rates new text begin under subdivisions new text end 17.32 new text begin 2, 3, and 3a, new text end by more than 0.5 new text begin one new text end percent of covered payroll, the coordinated program 17.33employee and employer contribution rates new text begin under subdivisions 2 and 3 new text end must be adjusted 17.34 new text begin decreased new text end incrementally over one or more years new text begin by no more than 0.25 percent of pay each new text end 17.35 new text begin for employee and employer matching contribution rates new text end to a level such that there remains 17.36a contribution sufficiency of no more than 0.25 new text begin at least one new text end percent of covered payroll. new text begin No new text end 18.1 new text begin contribution rate decrease may be made until at least two years have elapsed since any new text end 18.2 new text begin adjustment under this subdivision has been fully implemented. new text end 18.3(d) No new text begin If the actuarially required contribution exceeds the total support provided new text end 18.4 new text begin by the combined employee and employer contribution rates under subdivisions 2, 3, and new text end 18.5 new text begin 3a, the employee and matching employer contribution rates must be increased equally to new text end 18.6 new text begin eliminate that contribution deficiency. If the contribution deficiency is: new text end 18.7 new text begin (1) less than two percent, the new text end incremental adjustment new text begin increase new text end may exceed new text begin be up new text end 18.8 new text begin to new text end 0.25 percent for either the coordinated program employee and new text begin matching new text end employer 18.9contribution rates per year in which any adjustment is implemented. A contribution rate 18.10adjustment under this subdivision must not be made until at least two years have passed 18.11since fully implementing a previous adjustment under this subdivision. new text begin ; new text end 18.12 new text begin (2) greater than 1.99 percent and less than 4.01 percent, the incremental increase new text end 18.13 new text begin may be up to 0.5 percent for the employee and matching employer contribution rates; or new text end 18.14 new text begin (3) greater than four percent, the incremental increase may be up to 0.75 percent for new text end 18.15 new text begin the employee and matching employer contribution. new text end 18.16 new text begin (e) Any recommended adjustment to the contribution rates must be reported new text end 18.17 new text begin to the chair and the executive director of the Legislative Commission on Pensions new text end 18.18 new text begin and Retirement by January 15 following receipt of the most recent annual actuarial new text end 18.19 new text begin valuation prepared under section 356.215. If the Legislative Commission on Pensions new text end 18.20 new text begin and Retirement does not recommend against the rate change or does not recommend a new text end 18.21 new text begin modification in the rate change, the recommended adjustment becomes effective on the new text end 18.22 new text begin first day of the first full payroll period in the fiscal year following receipt of the most new text end 18.23 new text begin recent actuarial valuation that gave rise to the adjustment. new text end 18.24 new text begin (f) A contribution sufficiency of up to one percent of covered payroll must be held in new text end 18.25 new text begin reserve to be used to offset any future actuarially required contributions that are more than new text end 18.26 new text begin the total combined employee and employer contributions under subdivisions 2, 3, and 3a. new text end 18.27 new text begin (g) Before any reduction in contributions to eliminate a sufficiency in excess of one new text end 18.28 new text begin percent of covered pay may be recommended, the executive director must review any new text end 18.29 new text begin need for a change in actuarial assumptions, as recommended by the actuary retained under new text end 18.30 new text begin section 356.214 in the most recent experience study of the general employees retirement new text end 18.31 new text begin plan prepared under section 356.215 and the standards for actuarial work promulgated by new text end 18.32 new text begin the Legislative Commission on Pensions and Retirement that may result in an increase new text end 18.33 new text begin in the actuarially required contribution and must report to the Legislative Commission new text end 18.34 new text begin on Pensions and Retirement any recommendation by the board to use the sufficiency new text end 18.35 new text begin exceeding one percent of covered payroll to offset the impact of an actuarial assumption new text end 19.1 new text begin change recommended by the actuary retained under section 356.214, subdivision 1, and new text end 19.2 new text begin reviewed by the actuary retained by the commission under section 356.214, subdivision 4. new text end 19.3 new text begin (h) No contribution sufficiency in excess of one percent of covered pay may be new text end 19.4 new text begin proposed to be used to increase benefits, and no benefit increase may be proposed that new text end 19.5 new text begin would initiate an automatic adjustment to increase contributions under this subdivision. new text end 19.6 new text begin Any proposed benefit improvement must include a recommendation, prepared by the new text end 19.7 new text begin actuary retained under section 356.214, subdivision 1, and reviewed by the actuary new text end 19.8 new text begin retained by the Legislative Commission on Pensions and Retirement as provided under new text end 19.9 new text begin section 356.214, subdivision 4, on how the benefit modification will be funded. new text end 19.10 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 19.11    Sec. 26. Minnesota Statutes 2008, section 353.29, subdivision 1, is amended to read: 19.12    Subdivision 1. Age and allowable service requirements. Upon termination of 19.13membership, a person who has attained normal retirement age and who received credit for 19.14not less than three years of allowable service new text begin is vested under section 353.01, subdivision new text end 19.15 new text begin 47, new text end is entitled upon application to a retirement annuity. The retirement annuity is known 19.16as the "normal" retirement annuity. 19.17 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 19.18    Sec. 27. Minnesota Statutes 2008, section 353.30, subdivision 1c, is amended to read: 19.19    Subd. 1c. Pre-July 1, 1989, members: early retirement. Upon termination of 19.20public service, a person who first became a public employee or a member of a pension 19.21fund listed in section 356.30, subdivision 3, before July 1, 1989, who has become at least 19.2255 years old but not normal retirement age, and has received credit for at least three years 19.23of allowable service new text begin is vested under section 353.01, subdivision 47, new text end is entitled new text begin , new text end upon 19.24application new text begin , new text end to a retirement annuity in an amount equal to the normal annuity provided in 19.25section 353.29, subdivision 3, paragraph (a), reduced by one-quarter of one percent for 19.26each month that the member is under normal retirement age at the time of retirement. 19.27 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 19.28    Sec. 28. Minnesota Statutes 2008, section 353.32, subdivision 1, is amended to read: 19.29    Subdivision 1. Before retirement. If a member or former member who terminated 19.30public service dies before retirement or before receiving any retirement annuity and no 19.31other payment of any kind is or may become payable to any person, a refund shall be paid 19.32 new text begin is payable new text end to the designated beneficiary or, if there be none, to the surviving spouse, 20.1or, if none, to the legal representative of the decedent's estate. Such new text begin The new text end refund shall 20.2 new text begin must new text end be in an amount equal to accumulated deductions plus new text begin annual compound new text end interest 20.3thereon at the rate of six percent per annum compounded annually new text begin specified in section new text end 20.4 new text begin 353.34, subdivision 2, and new text end less the sum of any disability or survivor benefits, if any, that 20.5may have been paid by the fund; provided that a survivor who has a right to benefits 20.6pursuant to new text begin under new text end section 353.31 may waive such benefits in writing, except such benefits 20.7for a dependent child under the age of 18 years may only be waived pursuant to new text begin under new text end an 20.8order of the district court. 20.9 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 20.10    Sec. 29. Minnesota Statutes 2008, section 353.32, subdivision 1a, is amended to read: 20.11    Subd. 1a. Surviving spouse optional annuity. (a) If a member or former member 20.12who has credit for not less than three years of allowable service new text begin is vested under section new text end 20.13 new text begin 353.01, subdivision 47, new text end and new text begin who new text end dies before the annuity or disability benefit begins to 20.14accrue under section 353.29, subdivision 7, or 353.33, subdivision 2, notwithstanding any 20.15designation of beneficiary to the contrary, the surviving spouse may elect to receive, 20.16instead of a refund with interest under subdivision 1, or surviving spouse benefits otherwise 20.17payable under section 353.31, an annuity equal to a 100 percent joint and survivor annuity 20.18computed consistent with section 353.30, subdivision 1a, 1c, or 5, whichever is applicable. 20.19    (b) If a member first became a public employee or a member of a pension fund listed 20.20in section 356.30, subdivision 3, before July 1, 1989, and has credit for at least 30 years 20.21of allowable service on the date of death, the surviving spouse may elect to receive a 20.22100 percent joint and survivor annuity computed using section 353.30, subdivision 1b, 20.23except that the early retirement reduction under that provision will be applied from age 20.2462 back to age 55 and one-half of the early retirement reduction from age 55 back to 20.25the age payment begins. 20.26    (c) If a member who was under age 55 and has credit for at least three years of 20.27allowable service new text begin who is vested under section 353.01, subdivision 47, new text end dies, but did not 20.28qualify for retirement on the date of death, the surviving spouse may elect to receive a 20.29100 percent joint and survivor annuity computed using section 353.30, subdivision 1c or 20.305, as applicable, except that the early retirement reduction specified in the applicable 20.31subdivision will be applied to age 55 and one-half of the early retirement reduction from 20.32age 55 back to the age payment begins. 20.33    (d) Notwithstanding the definition of surviving spouse in section 353.01, subdivision 20.3420 , a former spouse of the member, if any, is entitled to a portion of the monthly surviving 20.35spouse optional annuity if stipulated under the terms of a marriage dissolution decree filed 21.1with the association. If there is no surviving spouse or child or children, a former spouse 21.2may be entitled to a lump-sum refund payment under subdivision 1, if provided for in a 21.3marriage dissolution decree, but not a monthly surviving spouse optional annuity, despite 21.4the terms of a marriage dissolution decree filed with the association. 21.5    (e) The surviving spouse eligible for surviving spouse benefits under paragraph (a) 21.6may apply for the annuity at any time after the date on which the deceased employee 21.7would have attained the required age for retirement based on the employee's allowable 21.8service. The surviving spouse eligible for surviving spouse benefits under paragraph (b) or 21.9(c) may apply for an annuity any time after the member's death. 21.10    (f) Sections 353.34, subdivision 3, and 353.71, subdivision 2, apply to a deferred 21.11annuity or surviving spouse benefit payable under this subdivision. 21.12    (g) An amount equal to any excess of the accumulated contributions that were 21.13credited to the account of the deceased employee over and above the total of the annuities 21.14paid and payable to the surviving spouse must be paid to the surviving spouse's estate. 21.15    (h) A member may specify in writing, with the signed consent of the spouse, that 21.16this subdivision does not apply and that payment may be made only to the designated 21.17beneficiary as otherwise provided by this chapter. The waiver of a surviving spouse 21.18annuity under this section does not make a dependent child eligible for benefits under 21.19subdivision 1c. 21.20    (i) If the deceased member or former member first became a public employee or a 21.21member of a public pension plan listed in section 356.30, subdivision 3, on or after July 21.221, 1989, a survivor annuity computed under paragraph (a) or (c) must be computed as 21.23specified in section 353.30, subdivision 5, except for the revised early retirement reduction 21.24specified in paragraph (c), if paragraph (c) is the applicable provision. 21.25    (j) For any survivor annuity determined under this subdivision, the payment is to be 21.26based on the total allowable service that the member had accrued as of the date of death 21.27and the age of the member and surviving spouse on that date. 21.28 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 21.29    Sec. 30. Minnesota Statutes 2009 Supplement, section 353.33, subdivision 1, is 21.30amended to read: 21.31    Subdivision 1. Age, service, and salary requirements. new text begin (a) new text end A coordinated or 21.32basic member who has at least three years of allowable service new text begin is vested under section new text end 21.33 new text begin 353.01, subdivision 47, new text end and new text begin who new text end becomes totally and permanently disabled before normal 21.34retirement age, upon application as defined under section 353.031, is entitled to a disability 21.35benefit in an amount determined under subdivision 3. 22.1 new text begin (b) new text end If the disabled person's public service has terminated at any time, at least two of 22.2the required three years of allowable service new text begin required to be vested under section 353.01, new text end 22.3 new text begin subdivision 47, new text end must have been rendered after last becoming an active member. 22.4 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 22.5    Sec. 31. Minnesota Statutes 2008, section 353.34, subdivision 1, is amended to read: 22.6    Subdivision 1. Refund or deferred annuity. (a) A former member is entitled to 22.7 new text begin either new text end a refund of accumulated employee deductions under subdivision 2, or to a deferred 22.8annuity under subdivision 3. Application for a refund may not be made before the date of 22.9termination of public service. Except as specified in paragraph (b), a refund must be paid 22.10within 120 days following receipt of the application unless the applicant has again become 22.11a public employee required to be covered by the association. 22.12(b) If an individual was placed on layoff under section 353.01, subdivision 12 or 12c, 22.13a refund is not payable before termination of service under section 353.01, subdivision 11a. 22.14(c) An individual who terminates public service covered by the Public Employees 22.15Retirement Association general employees retirement plan, the Public Employees 22.16Retirement Association police and fire retirement plan, or the public employees local 22.17government corrections new text begin correctional new text end service retirement plan, and who is employed by a 22.18different employer and who becomes an active member covered by one of the other two 22.19plans, may receive a refund of employee contributions plus six percent new text begin annual compound new text end 22.20interest compounded annually from the plan from which the member terminated service new text begin at new text end 22.21 new text begin the applicable rate specified in subdivision 2 new text end . 22.22 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 22.23    Sec. 32. Minnesota Statutes 2008, section 353.34, subdivision 2, is amended to read: 22.24    Subd. 2. Refund with interest. new text begin (a) new text end Except as provided in subdivision 1, any person 22.25who ceases to be a public employee shall new text begin is entitled to new text end receive a refund in an amount equal 22.26to accumulated deductions with new text begin annual compound new text end interest to the first day of the month 22.27in which the refund is processed at the rate of six percent compounded annually based 22.28on fiscal year balances. 22.29 new text begin (b) For a person who ceases to be a public employee before July 1, 2011, the refund new text end 22.30 new text begin interest is at the rate of six percent to June 30, 2011, and at the rate of four percent after new text end 22.31 new text begin June 30, 2011. For a person who ceases to be a public employee after July 1, 2011, the new text end 22.32 new text begin refund interest is at the rate of four percent. new text end 23.1 new text begin (c) new text end If a person repays a refund and subsequently applies for another refund, the 23.2repayment amount, including interest, is added to the fiscal year balance in which the 23.3repayment was made. 23.4 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 23.5    Sec. 33. Minnesota Statutes 2008, section 353.34, subdivision 3, is amended to read: 23.6    Subd. 3. Deferred annuity; eligibility; computation. new text begin (a) new text end A member with at least 23.7three years of allowable service new text begin who is vested under section 353.01, subdivision 47, new text end when 23.8termination of public service or termination of membership occurs has the option of 23.9leaving the accumulated deductions in the fund and being entitled to a deferred retirement 23.10annuity commencing at normal retirement age or to a deferred early retirement annuity 23.11under section 353.30, subdivision 1a, 1b, 1c, or 5. 23.12 new text begin (b) new text end The deferred annuity must be computed under section 353.29, subdivision 3, on 23.13the basis of the law in effect on the date of termination of public service or termination of 23.14membership, whichever is earlier, and must be augmented as provided in section 353.71, 23.15subdivision 2 . 23.16 new text begin (c) new text end A former member qualified to apply for a deferred retirement annuity may 23.17revoke this option at any time before the commencement of deferred annuity payments 23.18by making application for a refund. The person is entitled to a refund of accumulated 23.19member contributions within 30 days following date of receipt of the application by the 23.20executive director. 23.21 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 23.22    Sec. 34. Minnesota Statutes 2009 Supplement, section 353.65, subdivision 2, is 23.23amended to read: 23.24    Subd. 2. Employee contribution. The employee contribution is 9.4 percent of the 23.25salary of the member new text begin in calendar year 2010 and is 9.6 percent of the salary of the member new text end 23.26 new text begin in each calendar year after 2010 new text end . This contribution must be made by deduction from 23.27salary in the manner provided in subdivision 4. Where any portion of a member's salary 23.28is paid from other than public funds, the member's employee contribution is based on 23.29the total salary received from all sources. 23.30 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 23.31    Sec. 35. Minnesota Statutes 2009 Supplement, section 353.65, subdivision 3, is 23.32amended to read: 24.1    Subd. 3. Employer contribution. The employer contribution is 14.1 percent of the 24.2salary of the member new text begin in calendar year 2010 and is 14.4 percent of the salary of the member new text end 24.3 new text begin in each calendar year after 2010 new text end . This contribution must be made from funds available to 24.4the employing subdivision by the means and in the manner provided in section 353.28. 24.5 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 24.6    Sec. 36. Minnesota Statutes 2008, section 353.651, subdivision 1, is amended to read: 24.7    Subdivision 1. Age and allowable service requirements. Upon separation from 24.8public service, any police officer or firefighter member who has attained the age of at 24.9least 55 years and who received credit for not less than three years of allowable service 24.10 new text begin is vested under section 353.01, subdivision 47, new text end is entitled upon application to a retirement 24.11annuity. Such retirement annuity is new text begin , new text end known as the "normal" retirement annuity. 24.12 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 24.13    Sec. 37. Minnesota Statutes 2008, section 353.651, subdivision 4, is amended to read: 24.14    Subd. 4. Early retirement. (a) A person who becomes a police and fire plan 24.15member after June 30, 2007, or a former member who is reinstated as a member of the 24.16plan after that date, who is at least 50 years of age with at least three years of allowable 24.17service new text begin and who is vested under section 353.01, subdivision 47 new text end , upon the termination of 24.18public service is entitled upon application to a retirement annuity equal to the normal 24.19annuity calculated under subdivision 3, reduced by two-tenths of one percent for each 24.20month that the member is under age 55 at the time of retirement. 24.21    (b) Upon the termination of public service, any police and fire plan member not 24.22specified in paragraph (a), upon attaining at least 50 years of age with at least three years 24.23of allowable service is entitled upon application to a retirement annuity equal to the 24.24normal annuity calculated under subdivision 3, reduced by one-tenth of one percent for 24.25each month that the member is under age 55 at the time of retirement. 24.26 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 24.27    Sec. 38. Minnesota Statutes 2008, section 353.657, subdivision 1, is amended to read: 24.28    Subdivision 1. Generally. (a) In the event that a member of the police and fire 24.29fund dies from any cause before retirement or before becoming disabled and receiving 24.30disability benefits, the association shall grant survivor benefits to a surviving spouse, as 24.31defined in section 353.01, subdivision 20, and to a dependent child or children, as defined 24.32in section 353.01, subdivision 15, except that if the death is not a line of duty death, the 25.1member must have accrued at least three years of credited service new text begin be vested under section new text end 25.2 new text begin 353.01, subdivision 47 new text end . 25.3    (b) Notwithstanding the definition of surviving spouse, a former spouse of the 25.4member, if any, is entitled to a portion of the monthly surviving spouse benefit if 25.5stipulated under the terms of a marriage dissolution decree filed with the association. If 25.6there is no surviving spouse or child or children, a former spouse may be entitled to 25.7a lump-sum refund payment under section 353.32, subdivision 1, if provided for in a 25.8marriage dissolution decree but not a monthly surviving spouse benefit despite the terms 25.9of a marriage dissolution decree filed with the association. 25.10    (c) The spouse and child or children are entitled to monthly benefits as provided in 25.11subdivisions 2 to 4. 25.12 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 25.13    Sec. 39. Minnesota Statutes 2008, section 353.657, subdivision 2a, is amended to read: 25.14    Subd. 2a. Death while eligible survivor benefit. (a) If a member or former member 25.15who has attained the age of at least 50 years and has credit for not less than three years 25.16allowable service new text begin either who is vested under section 353.01, subdivision 47, new text end or who has 25.17credit for at least 30 years of allowable service, regardless of age attained, dies before 25.18the annuity or disability benefit becomes payable, notwithstanding any designation of 25.19beneficiary to the contrary, the surviving spouse may elect to receive a death while 25.20eligible survivor benefit. 25.21    (b) Notwithstanding the definition of surviving spouse in section 353.01, subdivision 25.2220 , a former spouse of the member, if any, is entitled to a portion of the death while 25.23eligible survivor benefit if stipulated under the terms of a marriage dissolution decree 25.24filed with the association. If there is no surviving spouse or child or children, a former 25.25spouse may be entitled to a lump-sum refund payment under section 353.32, subdivision 25.261 , if provided for in a marriage dissolution decree but not a death while eligible survivor 25.27benefit despite the terms of a marriage dissolution decree filed with the association. 25.28    (c) The benefit may be elected instead of a refund with interest under section 353.32, 25.29subdivision 1 , or surviving spouse benefits otherwise payable under subdivisions 1 and 25.302. The benefit must be an annuity equal to the 100 percent joint and survivor annuity 25.31which the member could have qualified for on the date of death, computed as provided in 25.32sections 353.651, subdivisions 2 and 3, and 353.30, subdivision 3. 25.33    (d) The surviving spouse may apply for the annuity at any time after the date 25.34on which the deceased employee would have attained the required age for retirement 26.1based on the employee's allowable service. Sections 353.34, subdivision 3, and 353.71, 26.2subdivision 2 , apply to a deferred annuity payable under this subdivision. 26.3    (e) No payment accrues beyond the end of the month in which entitlement to 26.4such annuity has terminated. An amount equal to the excess, if any, of the accumulated 26.5contributions which were credited to the account of the deceased employee over and 26.6above the total of the annuities paid and payable to the surviving spouse must be paid to 26.7the deceased member's last designated beneficiary or, if none, to the legal representative of 26.8the estate of such deceased member. 26.9    (f) Any member may request in writing, with the signed consent of the spouse, that 26.10this subdivision not apply and that payment be made only to the designated beneficiary, as 26.11otherwise provided by this chapter. 26.12    (g) For a member who is employed as a full-time firefighter by the Department of 26.13Military Affairs of the state of Minnesota, allowable service as a full-time state Military 26.14Affairs Department firefighter credited by the Minnesota State Retirement System may be 26.15used in meeting the minimum allowable service requirement of this subdivision. 26.16 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 26.17    Sec. 40. Minnesota Statutes 2008, section 353.71, subdivision 1, is amended to read: 26.18    Subdivision 1. Eligibility. Any person who has been a member of new text begin a defined benefit new text end 26.19 new text begin retirement plan administered by new text end the Public Employees Retirement Association, or new text begin a new text end 26.20 new text begin retirement plan administered by new text end the Minnesota State Retirement System, or the Teachers 26.21Retirement Association, or any other public retirement system in the state of Minnesota 26.22having a like provision, except a fund new text begin retirement plan new text end providing benefits for police officers 26.23or firefighters governed by sections 69.77 or 69.771 to 69.776, shall be new text begin is new text end entitled new text begin , new text end when 26.24qualified new text begin , new text end to an annuity from each fund new text begin retirement plan new text end if the total allowable service in all 26.25funds new text begin retirement plans new text end or in any two of these funds new text begin retirement plans new text end totals three or more 26.26years new text begin the number of years of allowable service required to receive a normal retirement new text end 26.27 new text begin annuity for that retirement plan new text end , provided new text begin that new text end no portion of the allowable service upon 26.28which the retirement annuity from one fund new text begin retirement plan new text end is based is again used in the 26.29computation for benefits from another fund new text begin retirement plan new text end and provided further that the 26.30person has not taken a refund from any one of these funds new text begin retirement plans new text end since the 26.31person's membership in that association or system last terminated. The annuity from 26.32each fund shall new text begin must new text end be determined by the appropriate provisions of the law except that 26.33the requirement that a person must have at least three years new text begin a specific minimum period new text end 26.34of allowable service in the respective association or system shall new text begin does new text end not apply for the 26.35purposes of this section provided new text begin if new text end the combined service in two or more of these funds 27.1 new text begin retirement plans new text end equals three or more new text begin the number of new text end years new text begin of allowable service required to new text end 27.2 new text begin receive a normal retirement annuity for that retirement plan new text end . 27.3 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 27.4    Sec. 41. Minnesota Statutes 2008, section 353.71, subdivision 2, is amended to read: 27.5    Subd. 2. Deferred annuity computation; augmentation. (a) The deferred annuity 27.6accruing under subdivision 1, or under sections 353.34, subdivision 3, and 353.68, 27.7subdivision 4 , must be computed on the basis of allowable service prior to the termination 27.8of public service and augmented as provided in this paragraph new text begin subdivision new text end . The required 27.9reserves applicable to a deferred annuity, or to any deferred segment of an annuity must 27.10be determined as of the first day of the month following the month in which the former 27.11member ceased to be a public employee, or July 1, 1971, whichever is later. These 27.12 new text begin (b) For a person who became a public employee before July 1, 2006, whose period new text end 27.13 new text begin of deferral began after June 30, 1971, and who terminated public employment before new text end 27.14 new text begin January 1, 2012, the new text end required reserves new text begin of the deferred annuity new text end must be augmented at 27.15the new text begin following applicable new text end rate of new text begin or rates: new text end 27.16 new text begin (1) new text end five percent annually compounded annually new text begin annual compound interest new text end until 27.17January 1, 1981, and at the rate of new text begin ; new text end 27.18 new text begin (2) new text end three percent thereafter new text begin annual compound interest after January 1, 1981, or until new text end 27.19 new text begin the earlier of December 31, 2011, or after the date of the termination of public service or new text end 27.20 new text begin the termination of membership, whichever is later, new text end until January 1 of the year following 27.21the year in which the former member attains age 55 and new text begin ; new text end 27.22 new text begin (3) five percent annual compound interest new text end from that date to the effective date of 27.23retirement, the rate is five percent compounded annually if the employee became an 27.24employee before July 1, 2006, and at 2.5 percent compounded annually if the employee 27.25becomes an new text begin January 1 of the year following the year in which the former member attains new text end 27.26 new text begin age 55, or until December 31, 2011, whichever is earlier; and new text end 27.27 new text begin (4) one percent annual compound interest from January 1, 2012. new text end 27.28 new text begin (c) For a person who became a public new text end employee after June 30, 2006 new text begin , and who new text end 27.29 new text begin terminated public employment before January 1, 2012, the required reserves of the new text end 27.30 new text begin deferred annuity must be augmented at 2.5 percent annual compound interest from the date new text end 27.31 new text begin of termination of public service or termination of membership, whichever is earlier, until new text end 27.32 new text begin December 31, 2011, and one percent annual compound interest after December 31, 2011 new text end . 27.33 new text begin (d) For a person who terminates public employment after December 31, 2011, the new text end 27.34 new text begin required reserves of the deferred annuity must not be augmented. new text end 28.1 new text begin (e) new text end If a person has more than one period of uninterrupted service, the required 28.2reserves related to each period must be augmented as specified in this paragraph. The sum 28.3of the augmented required reserves is the present value of the annuity. Uninterrupted 28.4service for the purpose of this subdivision means periods of covered employment during 28.5which the employee has not been separated from public service for more than two years. 28.6If a person repays a refund, the restored service must be considered as continuous with the 28.7next period of service for which the employee has credit with this association. This section 28.8must not reduce the annuity otherwise payable under this chapter. This paragraph applies 28.9to individuals who become deferred annuitants on or after July 1, 1971. For a member 28.10who became a deferred annuitant before July 1, 1971, the paragraph applies from July 1, 28.111971, if the former active member applies for an annuity after July 1, 1973. 28.12(b) new text begin (f) new text end The retirement annuity or disability benefit of, or the survivor benefit payable 28.13on behalf of, a former member who terminated service before July 1, 1997, or the 28.14survivor benefit payable on behalf of a basic or police and fire member who was receiving 28.15disability benefits before July 1, 1997, which is first payable after June 30, 1997, must 28.16be increased on an actuarial equivalent basis to reflect the change in the postretirement 28.17interest rate actuarial assumption under section 356.215, subdivision 8, from five percent 28.18to six percent under a calculation procedure and tables adopted by the board and approved 28.19by the actuary retained under section 356.214. 28.20 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 28.21    Sec. 42. Minnesota Statutes 2008, section 353E.04, subdivision 1, is amended to read: 28.22    Subdivision 1. Eligibility requirements. After termination of public employment, 28.23an employee covered under section 353E.02 who has attained the age of at least 55 years 28.24and has credit for not less than three years of coverage new text begin who is vested under section new text end 28.25 new text begin 353.01, subdivision 47, new text end in the local government correctional service plan is entitled, upon 28.26application, to a normal retirement annuity. Instead of a normal retirement annuity, a 28.27retiring employee may elect to receive the optional annuity provided in section 353.30, 28.28subdivision 3 . 28.29 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 28.30    Sec. 43. Minnesota Statutes 2008, section 353E.04, subdivision 4, is amended to read: 28.31    Subd. 4. Early retirement. An employee covered under section 353E.02 who has 28.32attained the age of at least 50 years and has credit for not less than three years of coverage 28.33 new text begin who is vested under section 353.01, subdivision 47, new text end in the local government correctional 29.1service plan is entitled, upon application, to a reduced retirement annuity equal to the 29.2annuity calculated under subdivision 3, reduced so that the reduced annuity is the actuarial 29.3equivalent of the annuity that would be payable if the employee deferred receipt of the 29.4annuity from the day the annuity begins to accrue until age 55. 29.5 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 29.6    Sec. 44. Minnesota Statutes 2008, section 353E.07, subdivision 1, is amended to read: 29.7    Subdivision 1. Member at least age 50. If a member or former member of the local 29.8government correctional service retirement plan who has attained the age of at least 50 29.9years and has credit for not less than three years of allowable service new text begin who is vested under new text end 29.10 new text begin section 353.01, subdivision 47, new text end dies before the annuity or disability benefit has become 29.11payable, notwithstanding any designation of beneficiary to the contrary, the surviving 29.12spouse may elect to receive, in lieu of a refund with interest provided in section 353.32, 29.13subdivision 1 , a surviving spouse annuity equal to the 100 percent joint and survivor 29.14annuity for which the member could have qualified had the member terminated service 29.15on the date of death. 29.16 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 29.17    Sec. 45. Minnesota Statutes 2008, section 353E.07, subdivision 2, is amended to read: 29.18    Subd. 2. Member not yet age 50. If the member was under age 50, dies, and had 29.19credit for not less than three years of allowable service new text begin was vested under section 353.01, new text end 29.20 new text begin subdivision 47, new text end on the date of death but did not yet qualify for retirement, the surviving 29.21spouse may elect to receive a 100 percent joint and survivor annuity based on the age 29.22of the employee and the surviving spouse at the time of death. The annuity is payable 29.23using the early retirement reduction under section 353E.04, subdivision 4, to age 50 and 29.24one-half the early retirement reduction from age 50 to the age payment begins. Sections 29.25353.34, subdivision 3 , and 353.71, subdivision 2, apply to a deferred annuity or surviving 29.26spouse benefit payable under this subdivision. 29.27 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 29.28    Sec. 46. Minnesota Statutes 2008, section 353F.03, is amended to read: 29.29353F.03 VESTING RULE FOR CERTAIN EMPLOYEES. 29.30Notwithstanding any provision of chapter 353 to the contrary, a terminated medical 29.31facility or other public employing unit employee is eligible to receive a retirement annuity 30.1under section 353.29 of the edition of Minnesota Statutes published in the year before the 30.2year in which the privatization occurred, without regard to the requirement for three years 30.3of allowable service new text begin specified in section 353.01, subdivision 47 new text end . 30.4 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 30.5    Sec. 47. Minnesota Statutes 2009 Supplement, section 354.42, subdivision 2, is 30.6amended to read: 30.7    Subd. 2. Employee contribution. (a) For a basic member, the employee 30.8contribution to the fund is 9.0 percent new text begin the following percentage new text end of the member's salary. new text begin : new text end 30.9 new text begin before July 1, 2011 new text end new text begin 9.0 percent new text end 30.10 new text begin from July 1, 2011, until June 30, 2012 new text end new text begin 9.5 percent new text end 30.11 new text begin from July 1, 2012, until June 30, 2013 new text end new text begin 10.0 percent new text end 30.12 new text begin from July 1, 2013, until June 30, 2014 new text end new text begin 10.5 percent new text end 30.13 new text begin after June 30, 2014 new text end new text begin 11.0 percent new text end 30.14 new text begin (b) new text end For a coordinated member, the employee contribution is 5.5 percent new text begin the following new text end 30.15 new text begin percentage new text end of the member's salary. new text begin : new text end 30.16 new text begin before July 1, 2011 new text end new text begin 5.5 percent new text end 30.17 new text begin from July 1, 2011, until June 30, 2012 new text end new text begin 6.0 percent new text end 30.18 new text begin from July 1, 2012, until June 30, 2013 new text end new text begin 6.5 percent new text end 30.19 new text begin from July 1, 2013, until June 30, 2014 new text end new text begin 7.0 percent new text end 30.20 new text begin after June 30, 2014 new text end new text begin 7.5 percent new text end 30.21 new text begin (c) When an employee contribution rate changes for a fiscal year, the new new text end 30.22 new text begin contribution rate is effective for the entire salary paid for each employer unit with the new text end 30.23 new text begin first payroll cycle reported. new text end 30.24 new text begin (d) After June 30, 2015, if a contribution rate revision is required under subdivisions new text end 30.25 new text begin 4a, 4b, and 4c, the employee contributions under paragraphs (a) and (b) must be adjusted new text end 30.26 new text begin accordingly. new text end 30.27(b) new text begin (e) new text end This contribution must be made by deduction from salary. Where any portion 30.28of a member's salary is paid from other than public funds, the member's employee 30.29contribution must be based on the entire salary received. 30.30 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 30.31    Sec. 48. Minnesota Statutes 2008, section 354.42, subdivision 3, is amended to read: 30.32    Subd. 3. Employer. (a) The regular employer contribution to the fund by Special 30.33School District No. 1, Minneapolis, after July 1, 2006, and before July 1, 2007, is an 30.34amount equal to 5.0 percent of the salary of each of its teachers who is a coordinated 31.1member and 9.0 percent of the salary of each of its teachers who is a basic member. After 31.2July 1, 2007, the regular employer contribution to the fund by Special School District No. 31.31, Minneapolis, is an amount equal to 5.5 percent new text begin the applicable following percentage new text end of 31.4salary of each coordinated member and 9.5 percent new text begin the applicable following percentage new text end 31.5of salary of each basic member. new text begin : new text end 31.6 new text begin Period new text end new text begin Coordinated Member new text end new text begin Basic Member new text end 31.7 new text begin before July 1, 2011 new text end new text begin 5.5 percent new text end new text begin 9.5 percent new text end 31.8 new text begin from July 1, 2011, until June 30, 2012 new text end new text begin 6.0 percent new text end new text begin 10.0 percent new text end 31.9 new text begin from July 1, 2012, until June 30, 2013 new text end new text begin 6.5 percent new text end new text begin 10.5 percent new text end 31.10 new text begin from July 1, 2013, until June 30, 2014 new text end new text begin 7.0 percent new text end new text begin 11.0 percent new text end 31.11 new text begin after June 30, 2014 new text end new text begin 7.5 percent new text end new text begin 11.5 percent new text end 31.12 The additional employer contribution to the fund by Special School District No. 1, 31.13Minneapolis, after July 1, 2006, is an amount equal to 3.64 percent of the salary of each 31.14teacher who is a coordinated member or is a basic member. 31.15(b) The employer contribution to the fund for every other employer is an amount 31.16equal to 5.0 percent new text begin the applicable following percentage new text end of the salary of each coordinated 31.17member and 9.0 percent new text begin the applicable following percentage new text end of the salary of each basic 31.18member before July 1, 2007, and 5.5 percent of the salary of each coordinated member 31.19and 9.5 percent of the salary of each basic member after June 30, 2007. new text begin : new text end 31.20 new text begin Period new text end new text begin Coordinated Member new text end new text begin Basic Member new text end 31.21 new text begin before July 1, 2011 new text end new text begin 5.5 percent new text end new text begin 9.5 percent new text end 31.22 new text begin from July 1, 2011, until June 30, 2012 new text end new text begin 6.0 percent new text end new text begin 10.0 percent new text end 31.23 new text begin from July 1, 2012, until June 30, 2013 new text end new text begin 6.5 percent new text end new text begin 10.5 percent new text end 31.24 new text begin from July 1, 2013, until June 30, 2014 new text end new text begin 7.0 percent new text end new text begin 11.0 percent new text end 31.25 new text begin after June 30, 2014 new text end new text begin 7.5 percent new text end new text begin 11.5 percent new text end 31.26 new text begin (c) When an employer contribution rate changes for a fiscal year, the new new text end 31.27 new text begin contribution rate is effective for the entire salary paid for each employer unit with the new text end 31.28 new text begin first payroll cycle reported. new text end 31.29 new text begin (d) After June 30, 2015, if a contribution rate revision is made under subdivisions new text end 31.30 new text begin 4a, 4b, and 4c, the employer contributions under paragraphs (a) and (b) must be adjusted new text end 31.31 new text begin accordingly. new text end 31.32 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 31.33    Sec. 49. Minnesota Statutes 2008, section 354.42, is amended by adding a subdivision 31.34to read: 31.35     new text begin Subd. 4a. new text end new text begin Determination. new text end new text begin (a) For purposes of this section, a contribution new text end 31.36 new text begin sufficiency exists if the total of the employee contributions, the employer contributions, new text end 32.1 new text begin and any additional employer contributions, if applicable, exceeds the total of the normal new text end 32.2 new text begin cost, the administrative expenses, and the amortization contribution of the retirement plan new text end 32.3 new text begin as reported in the most recent actuarial valuation of the retirement plan prepared by the new text end 32.4 new text begin approved actuary retained under section 356.214 and prepared under section 356.215 new text end 32.5 new text begin and the standards for actuarial work of the Legislative Commission on Pensions and new text end 32.6 new text begin Retirement. new text end 32.7 new text begin (b) For purposes of this section, a contribution deficiency exists if the total of new text end 32.8 new text begin the employee contributions, the employer contributions, and any additional employer new text end 32.9 new text begin contributions are less than the total of the normal cost, the administrative expenses, and new text end 32.10 new text begin the amortization contribution of the retirement plan as reported in the most recent actuarial new text end 32.11 new text begin valuation of the retirement plan prepared by the approved actuary retained under section new text end 32.12 new text begin 356.214 and prepared under section 356.215 and the standards for actuarial work of the new text end 32.13 new text begin Legislative Commission on Pensions and Retirement. new text end 32.14 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 32.15    Sec. 50. Minnesota Statutes 2008, section 354.42, is amended by adding a subdivision 32.16to read: 32.17     new text begin Subd. 4b. new text end new text begin Contribution rate revision. new text end new text begin Notwithstanding the contribution rate new text end 32.18 new text begin provisions under subdivisions 2 and 3, the employee and employer contribution rates new text end 32.19 new text begin may be adjusted as follows: new text end 32.20 new text begin (1) if, after June 30, 2015, the regular actuarial valuation of the plan under section new text end 32.21 new text begin 356.215 indicates that there is a contribution sufficiency under subdivision 4a equal to new text end 32.22 new text begin or greater than one percent of covered payroll and the sufficiency has existed for at least new text end 32.23 new text begin two consecutive years, the employee and employer contribution rates for the plan may new text end 32.24 new text begin each be decreased to a level such that the sufficiency equals no more than one percent of new text end 32.25 new text begin covered payroll based on the most recent actuarial valuation; or new text end 32.26 new text begin (2) if, after June 30, 2015, the regular valuation of the plan under section 356.215 new text end 32.27 new text begin indicates that there is a deficiency equal to or greater than 0.25 percent of covered payroll new text end 32.28 new text begin and the deficiency has existed for at least two consecutive years, the employee and new text end 32.29 new text begin employer contribution rates for the applicable plan may each be increased by: new text end 32.30 new text begin (i) 0.25 percent if the deficiency is less than 2.00 percent of covered payroll; new text end 32.31 new text begin (ii) 0.5 percent if the deficiency is equal to or greater than 2.00 percent of covered new text end 32.32 new text begin payroll and less than or equal to four percent; and new text end 32.33 new text begin (iii) 0.75 percent if the deficiency is greater than four percent. new text end 32.34 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 33.1    Sec. 51. Minnesota Statutes 2008, section 354.42, is amended by adding a subdivision 33.2to read: 33.3     new text begin Subd. 4c. new text end new text begin Contribution sufficiency measures. new text end new text begin (a) A contribution sufficiency of up new text end 33.4 new text begin to one percent of covered payroll must be held in reserve to be used to offset any future new text end 33.5 new text begin actuarially required contributions that are more than the total combined employee and new text end 33.6 new text begin employer contributions being collected. new text end 33.7 new text begin (b) Before any reduction in contributions to eliminate a sufficiency in excess of one new text end 33.8 new text begin percent of covered pay may be recommended, the executive director must review any new text end 33.9 new text begin need for a change in actuarial assumptions, as recommended by the actuary retained new text end 33.10 new text begin under section 356.214 in the most recent experience study of the retirement plan, that new text end 33.11 new text begin may result in an increase in the actuarially required contribution and must report to the new text end 33.12 new text begin Legislative Commission on Pensions and Retirement any recommendation by the board new text end 33.13 new text begin to use the sufficiency exceeding one percent of covered payroll to offset the impact of new text end 33.14 new text begin an actuarial assumption change recommended by the actuary retained under section new text end 33.15 new text begin 356.214, subdivision 1, and reviewed by the actuary retained by the commission under new text end 33.16 new text begin section 356.214, subdivision 4. new text end 33.17 new text begin (c) A contribution sufficiency in excess of one percent of covered pay must not be new text end 33.18 new text begin used to increase benefits, and a benefit increase must not be proposed that would initiate new text end 33.19 new text begin an automatic adjustment under this section to increase contributions. A proposed benefit new text end 33.20 new text begin improvement must include a recommendation, prepared by the actuary retained under new text end 33.21 new text begin section 356.214, subdivision 1, and reviewed by the actuary retained by the Legislative new text end 33.22 new text begin Commission on Pensions and Retirement, as provided under section 356.214, subdivision new text end 33.23 new text begin 4, on the manner in which the benefit modification is to be funded. new text end 33.24 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 33.25    Sec. 52. Minnesota Statutes 2008, section 354.42, is amended by adding a subdivision 33.26to read: 33.27     new text begin Subd. 4d. new text end new text begin Reporting; commission review. new text end new text begin A contribution rate increase or decrease new text end 33.28 new text begin under subdivision 4b, as determined by the executive director of the Teachers Retirement new text end 33.29 new text begin Association, must be reported to the chair and the executive director of the Legislative new text end 33.30 new text begin Commission on Pensions and Retirement on or before the next February 1 and, if the new text end 33.31 new text begin Legislative Commission on Pensions and Retirement does not recommend against the rate new text end 33.32 new text begin change or does not recommend a modification in the rate change, is effective on the next new text end 33.33 new text begin July 1 following the determination by the executive director that a contribution deficiency new text end 33.34 new text begin or sufficiency exists based on the most recent actuarial valuation under section 356.215. new text end 34.1 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 34.2    Sec. 53. Minnesota Statutes 2009 Supplement, section 354.47, subdivision 1, is 34.3amended to read: 34.4    Subdivision 1. Death before retirement. (a) If a member dies before retirement 34.5and is covered under section 354.44, subdivision 2, and neither an optional annuity, nor a 34.6reversionary annuity, nor a benefit under section 354.46, subdivision 1, is payable to the 34.7survivors if the member was a basic member, then the surviving spouse, or if there is no 34.8surviving spouse, the designated beneficiary is entitled to an amount equal to the member's 34.9accumulated deductions with interest credited to the account of the member to the date of 34.10death of the member. If the designated beneficiary is a minor, interest must be credited to 34.11the date the beneficiary reaches legal age, or the date of receipt, whichever is earlier. 34.12(b) If a member dies before retirement and is covered under section 354.44, 34.13subdivision 6 , and neither an optional annuity, nor reversionary annuity, nor the benefit 34.14described in section 354.46, subdivision 1, is payable to the survivors if the member 34.15was a basic member, then the surviving spouse, or if there is no surviving spouse, new text begin then new text end 34.16the designated beneficiary is entitled to an amount equal to the member's accumulated 34.17deductions credited to the account of the member as of June 30, 1957, and from July 1, 34.181957, to the date of death of the member, the member's accumulated deductions plus six 34.19percent interest compounded annually. new text begin a refund equal to the accumulated deductions new text end 34.20 new text begin credited to the member's account plus interest compounded annually until the member's new text end 34.21 new text begin date of death using the following interest rates: new text end 34.22 new text begin (1) before July 1, 1957, no interest accrues; new text end 34.23 new text begin (2) July 1, 1957, to June 30, 2011, six percent; and new text end 34.24 new text begin (3) after June 30, 2011, four percent. new text end 34.25(c) If the designated beneficiary under paragraph (b) is a minor, any interest credited 34.26under that paragraph must be credited to the date the beneficiary reaches legal age, or 34.27the date of receipt, whichever is earlier. 34.28(d) The amount of any refund payable under this subdivision must be reduced by 34.29any permanent disability payment under section 354.48 received by the member. 34.30 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 34.31    Sec. 54. Minnesota Statutes 2009 Supplement, section 354.49, subdivision 2, is 34.32amended to read: 34.33    Subd. 2. Calculation. (a) Except as provided in section 354.44, subdivision 1, 34.34any person who ceases to be a member by reason of termination of teaching service, is 35.1entitled to receive a refund in an amount equal to the accumulated deductions credited 35.2to the account as of June 30, 1957, and after July 1, 1957, the accumulated deductions 35.3with interest at the rate of six percent per annum compounded annually. new text begin plus interest new text end 35.4 new text begin compounded annually using the following interest rates: new text end 35.5 new text begin (1) before July 1, 1957, no interest accrues; new text end 35.6 new text begin (2) July 1, 1957, to June 30, 2011, six percent; and new text end 35.7 new text begin (3) after June 30, 2011, four percent. new text end 35.8For the purpose of this subdivision, interest must be computed on fiscal year end 35.9balances to the first day of the month in which the refund is issued. 35.10(b) If the person has received permanent disability payments under section 354.48, 35.11the refund amount must be reduced by the amount of those payments. 35.12 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 35.13    Sec. 55. Minnesota Statutes 2009 Supplement, section 354.55, subdivision 11, is 35.14amended to read: 35.15    Subd. 11. Deferred annuity; augmentation. (a) Any person covered under section 35.16354.44, subdivision 6 , who ceases to render teaching service, may leave the person's 35.17accumulated deductions in the fund for the purpose of receiving a deferred annuity 35.18at retirement. 35.19(b) The amount of the deferred retirement annuity is determined by section 354.44, 35.20subdivision 6 , and augmented as provided in this subdivision. The required reserves for 35.21the annuity which had accrued when the member ceased to render teaching service must 35.22be augmented, as further specified in this subdivision, by new text begin the applicable new text end interest new text begin rate new text end 35.23compounded annually from the first day of the month following the month during which 35.24the member ceased to render teaching service to the effective date of retirement. 35.25(c) No augmentation is not creditable if the deferral period is less than three months 35.26or if deferral commenced before July 1, 1971. 35.27(d) For persons who became covered employees before July 1, 2006, with a deferral 35.28period commencing after June 30, 1971, the annuity must be augmented using new text begin as follows: new text end 35.29 new text begin (1) new text end five percent interest compounded annually until January 1, 1981, and new text begin ; new text end 35.30 new text begin (2) new text end three percent interest compounded annually thereafter new text begin from January 1, 1981, new text end until 35.31January 1 of the year following the year in which the deferred annuitant attains age 55. new text begin ; new text end 35.32 From that date new text begin (3) five percent interest compounded annually from the date new text end 35.33 new text begin established in clause (2) new text end to the effective date of retirement, the rate is five percent 35.34compounded annually. new text begin or until June 30, 2012, whichever is earlier; and new text end 35.35 new text begin (4) two percent interest compounded annually after June 30, 2012. new text end 36.1(e) For persons who become covered employees after June 30, 2006, the interest 36.2rate used to augment the deferred annuity is 2.5 percent interest compounded annually new text begin new text end 36.3 new text begin until June 30, 2012, or until the effective date of retirement, whichever is earlier, and two new text end 36.4 new text begin percent interest compounded annually after June 30, 2012 new text end . 36.5(f) If a person has more than one period of uninterrupted service, a separate average 36.6salary determined under section 354.44, subdivision 6, must be used for each period 36.7and the required reserves related to each period must be augmented as specified in this 36.8subdivision. The sum of the augmented required reserves is the present value of the 36.9annuity. For the purposes of this subdivision, "period of uninterrupted service" means a 36.10period of covered teaching service during which the member has not been separated from 36.11active service for more than one fiscal year. 36.12(g) If a person repays a refund, the service restored by the repayment must be 36.13considered as continuous with the next period of service for which the person has 36.14allowable service credit in the Teachers Retirement Association. 36.15(h) If a person does not render teaching service in any one fiscal year or more 36.16consecutive fiscal years and then resumes teaching service, the formula percentages used 36.17from the date of the resumption of teaching service must be those applicable to new 36.18members. 36.19(i) The mortality table and interest new text begin rate actuarial new text end assumption used to compute the 36.20annuity must be the applicable mortality table established by the board under section 36.21354.07, subdivision 1 , and the interest rate new text begin actuarial new text end assumption under section 356.215 in 36.22effect when the member retires. 36.23(j) In no case may the annuity payable under this subdivision be less than the amount 36.24of annuity payable under section 354.44, subdivision 6. 36.25(k) The requirements and provisions for retirement before normal retirement age 36.26contained in section 354.44, subdivision 6, also apply to an employee fulfilling the 36.27requirements with a combination of service as provided in section 354.60. 36.28(l) The augmentation provided by this subdivision applies to the benefit provided 36.29in section 354.46, subdivision 2. 36.30(m) The augmentation provided by this subdivision does not apply to any period 36.31in which a person is on an approved leave of absence from an employer unit covered 36.32by the provisions of this chapter. 36.33(n) The retirement annuity or disability benefit of, or the survivor benefit payable on 36.34behalf of, a former teacher who terminated service before July 1, 1997, which is not first 36.35payable until after June 30, 1997, must be increased on an actuarial equivalent basis to 36.36reflect the change in the postretirement interest rate actuarial assumption under section 37.1356.215, subdivision 8 , from five percent to six percent under a calculation procedure and 37.2tables adopted by the board as recommended by an approved actuary and approved by the 37.3actuary retained under section 356.214. 37.4 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 37.5    Sec. 56. Minnesota Statutes 2008, section 354A.12, subdivision 1, is amended to read: 37.6    Subdivision 1. Employee contributions. new text begin (a) new text end The contribution required to be paid 37.7by each member of a teachers retirement fund association shall not be less than new text begin is new text end the 37.8percentage of total salary specified below for the applicable association and program: 37.9 Association and Program Percentage of Total Salary 37.10 Duluth Teachers Retirement Fund Association 37.11 old law and new law 37.12 coordinated programs 5.5 percent 37.13 new text begin before July 1, 2011 new text end new text begin 5.5 percent new text end 37.14 new text begin effective July 1, 2011 new text end new text begin 6.0 percent new text end 37.15 new text begin effective July 1, 2012 new text end new text begin 6.5 percent new text end 37.16 St. Paul Teachers Retirement Fund Association 37.17 basic program new text begin before July 1, 2010 new text end 8 percent 37.18 new text begin basic program after June 30, 2010 new text end new text begin 8.5 percent new text end 37.19 new text begin basic program after June 30, 2011 new text end new text begin 9.0 percent new text end 37.20 coordinated program new text begin before July 1, 2010 new text end 5.5 percent 37.21 new text begin coordinated program after June 30, 2010 new text end new text begin 6.0 percent new text end 37.22 new text begin coordinated program after June 30, 2011 new text end new text begin 6.5 percent new text end 37.23 new text begin (b) new text end Contributions shall be made by deduction from salary and must be remitted 37.24directly to the respective teachers retirement fund association at least once each month. 37.25 new text begin (c) When an employee contribution rate changes for a fiscal year, the new new text end 37.26 new text begin contribution rate is effective for the entire salary paid by the employer with the first new text end 37.27 new text begin payroll cycle reported. new text end 37.28 new text begin EFFECTIVE DATE. new text end new text begin This section is effective July 1, 2010. new text end 37.29    Sec. 57. Minnesota Statutes 2009 Supplement, section 354A.12, subdivision 2a, 37.30is amended to read: 37.31    Subd. 2a. Employer regular and additional contributions. (a) The employing 37.32units shall make the following employer contributions to teachers retirement fund 37.33associations: 37.34(1) for any coordinated member of one of the following teachers retirement fund 37.35associations in a city of the first class, the employing unit shall make a regular employer 38.1contribution to the respective retirement fund association in an amount equal to the 38.2designated percentage of the salary of the coordinated member as provided below: 38.3 Duluth Teachers Retirement Fund Association 4.50 percent 38.4 new text begin before July 1, 2011 new text end new text begin 5.79 percent new text end 38.5 new text begin effective July 1, 2011 new text end new text begin 6.29 percent new text end 38.6 new text begin effective July 1, 2012 new text end new text begin 6.79 percent new text end 38.7 38.8 St. Paul Teachers Retirement Fund Association new text begin new text end new text begin before July 1, 2010 new text end 4.50 percent 38.9 new text begin after June 30, 2010 new text end new text begin 5.0 percent new text end 38.10 new text begin after June 30, 2011 new text end new text begin 5.5 percent new text end 38.11 new text begin after June 30, 2013 new text end new text begin 6.5 percent new text end 38.12(2) for any basic member of the St. Paul Teachers Retirement Fund Association, the 38.13employing unit shall make a regular employer contribution to the respective retirement 38.14fund in an amount equal to 8.00 percent of the salary of the basic member; new text begin according to new text end 38.15 new text begin the schedule below: new text end 38.16 new text begin before July 1, 2010 new text end new text begin 8.0 percent of the salary of the basic member new text end 38.17 new text begin before July 1, 2011 new text end new text begin 8.5 percent of the salary of the basic member new text end 38.18 new text begin before July 1, 2012 new text end new text begin 9.0 percent of the salary of the basic member new text end 38.19 new text begin before July 1, 2013 new text end new text begin 9.5 percent of the salary of the basic member new text end 38.20 new text begin before July 1, 2014 new text end new text begin 10.0 percent of the salary of the basic member new text end 38.21(3) for a basic member of the St. Paul Teachers Retirement Fund Association, the 38.22employing unit shall make an additional employer contribution to the respective fund in 38.23an amount equal to 3.64 percent of the salary of the basic member; 38.24(4) for a coordinated member of a teachers retirement fund association in a city of 38.25the first class new text begin the St. Paul Teachers Retirement Fund Association new text end , the employing unit shall 38.26make an additional employer contribution to the respective fund in an amount equal to the 38.27applicable percentage of the coordinated member's salary, as provided below: 38.28 38.29 Duluth Teachers Retirement Fund Association 1.29 percent 38.30 38.31 St. Paul Teachers Retirement Fund Association 3.84 percent 38.32(b) The regular and additional employer contributions must be remitted directly to 38.33the respective teachers retirement fund association at least once each month. Delinquent 38.34amounts are payable with interest under the procedure in subdivision 1a. 38.35(c) Payments of regular and additional employer contributions for school district 38.36or technical college employees who are paid from normal operating funds must be made 38.37from the appropriate fund of the district or technical college. 39.1 new text begin (d) When an employer contribution rate changes for a fiscal year, the new new text end 39.2 new text begin contribution rate is effective for the entire salary paid by the employer with the first new text end 39.3 new text begin payroll cycle reported. new text end 39.4 new text begin EFFECTIVE DATE. new text end new text begin This section is effective July 1, 2010. new text end 39.5    Sec. 58. Minnesota Statutes 2008, section 354A.12, subdivision 3c, is amended to read: 39.6    Subd. 3c. Termination of supplemental contributions and direct matching 39.7and state aid. (a) The supplemental contributions payable to the Minneapolis Teachers 39.8Retirement Fund Association by Special School District No. 1 and the city of Minneapolis 39.9under section 423A.02, subdivision 3, must be paid to the Teachers Retirement 39.10Association and must continue until the current assets of the fund equal or exceed the 39.11actuarial accrued liability of the fund as determined in the most recent actuarial report 39.12for the fund by the actuary retained under section 356.214, or 2037, whichever occurs 39.13earlier. The supplemental contributions payable to the St. Paul Teachers Retirement Fund 39.14Association by Independent School District No. 625 under section 423A.02, subdivision 39.153 , or the direct state aid under subdivision 3a to the St. Paul Teachers Retirement Fund 39.16Association terminate at the end of the fiscal year in which the accrued liability funding 39.17ratio for that fund, as determined in the most recent actuarial report for that fund by the 39.18actuary retained under section , equals or exceeds the accrued liability funding 39.19ratio for the Teachers Retirement Association, as determined in the most recent actuarial 39.20report for the Teachers Retirement Association by the actuary retained under section 39.21. new text begin must continue until the current assets of the fund equal or exceed the actuarial new text end 39.22 new text begin accrued liability of the fund as determined in the most recent actuarial report for the fund new text end 39.23 new text begin by the actuary retained under section 356.214 or until 2037, whichever occurs earlier. new text end 39.24    (b) If the St. Paul Teachers Retirement Fund Association is funded at an amount 39.25equal to or greater than the funding ratio applicable to the Teachers Retirement 39.26Association, then any future state aid under subdivision 3a is payable to the Teachers 39.27Retirement Association. 39.28 new text begin EFFECTIVE DATE. new text end new text begin This section is effective July 1, 2010. new text end 39.29    Sec. 59. Minnesota Statutes 2008, section 354A.27, subdivision 5, is amended to read: 39.30    Subd. 5. Calculation new text begin Eligibility for and payment new text end of postretirement adjustments. 39.31(a) Annually, after June 30, the board of trustees new text begin of the Duluth Teachers Retirement Fund new text end 39.32 new text begin Association new text end determines the amount of any postretirement adjustment using the procedures 39.33in this subdivision and subdivision 6 new text begin or 7, whichever is applicable new text end . 40.1(b) Each person who has been receiving an annuity or benefit under the articles 40.2of incorporation, bylaws, or under this section for at least 12 months as of the date of 40.3the postretirement adjustment shall be eligible for a postretirement adjustment. The 40.4postretirement adjustment shall be payable each January 1. The postretirement adjustment 40.5shall be equal to two percent of new text begin a permanent percentage increase as specified under new text end 40.6 new text begin subdivision 6 or 7, whichever is applicable, applied to new text end the annuity or benefit to which the 40.7person is entitled one month prior to the payment of the postretirement adjustment. 40.8 new text begin EFFECTIVE DATE. new text end new text begin This section is effective July 1, 2010. new text end 40.9    Sec. 60. Minnesota Statutes 2008, section 354A.27, subdivision 6, is amended to read: 40.10    Subd. 6. Additional increase new text begin Calculation of postretirement adjustments; new text end 40.11 new text begin transitional provision new text end . (a) In addition to the postretirement increases granted under 40.12subdivision 5, an additional percentage increase must be computed and paid under this 40.13subdivision. 40.14(b) The board of trustees shall determine the number of annuitants or benefit 40.15recipients who have been receiving an annuity or benefit for at least 12 months as of the 40.16current June 30. These recipients are entitled to receive the surplus investment earnings 40.17additional postretirement increase. 40.18(c) Annually, as of each June 30, the board shall determine the five-year annualized 40.19rate of return attributable to the assets of the Duluth Teachers Retirement Fund Association 40.20under the formula or formulas specified in section , clause (11). 40.21(d) The board shall determine the amount of excess five-year annualized rate of 40.22return over the preretirement interest assumption as specified in section . 40.23(e) The additional percentage increase must be determined by multiplying the 40.24quantity one minus the rate of contribution deficiency, as specified in the most recent 40.25actuarial report of the actuary retained under section , times the rate of return 40.26excess as determined in paragraph (d). 40.27(f) The additional increase is payable to all eligible annuitants or benefit recipients 40.28on the following January 1. 40.29 new text begin (a) For purposes of computing postretirement adjustments after the effective date new text end 40.30 new text begin of this section for eligible benefit recipients of the Duluth Teachers Retirement Fund new text end 40.31 new text begin Association, the funding ratio of the plan, as determined by dividing the market value of new text end 40.32 new text begin assets by the actuarial accrued liability as reported in the most recent actuarial valuation new text end 40.33 new text begin prepared under sections 356.214 and 356.215, determines the postretirement increase new text end 40.34 new text begin as follows: new text end 41.1 new text begin Funding Ratio new text end new text begin Postretirement Increase new text end 41.2 new text begin less than 80 percent new text end new text begin 0 percent new text end 41.3 41.4 new text begin at least 80 percent but less than 90 new text end new text begin percent new text end new text begin 1 percent new text end 41.5 new text begin at least 90 percent new text end new text begin 2 percent new text end 41.6 new text begin (b) If the funding ratio of the plan based on actuarial value, rather than market value, new text end 41.7 new text begin is at least 90 percent as reported in the most recent actuarial valuation prepared under new text end 41.8 new text begin sections 356.214 and 356.215, this subdivision expires and subsequent postretirement new text end 41.9 new text begin increases must be paid as specified under subdivision 7. new text end 41.10 new text begin EFFECTIVE DATE. new text end new text begin This section is effective July 1, 2010. new text end 41.11    Sec. 61. Minnesota Statutes 2008, section 354A.27, is amended by adding a 41.12subdivision to read: 41.13     new text begin Subd. 7. new text end new text begin Calculation of postretirement adjustments. new text end new text begin (a) This subdivision applies new text end 41.14 new text begin if subdivision 6 has expired. new text end 41.15 new text begin (b) A percentage adjustment must be computed and paid under this subdivision to new text end 41.16 new text begin eligible persons under subdivision 5. This adjustment is determined by reference to the new text end 41.17 new text begin Consumer Price Index for urban wage earners and clerical workers all items index as new text end 41.18 new text begin reported by the Bureau of Labor Statistics within the United States Department of Labor new text end 41.19 new text begin each year as part of the determination of annual cost-of-living adjustments to recipients new text end 41.20 new text begin of federal old-age, survivors, and disability insurance. For calculations of cost-of-living new text end 41.21 new text begin adjustments under paragraph (c), the term "average third quarter Consumer Price Index new text end 41.22 new text begin value" means the sum of the monthly index values as initially reported by the Bureau of new text end 41.23 new text begin Labor Statistics for the months of July, August, and September, divided by 3. new text end 41.24 new text begin (c) Before January 1 of each year, the executive director must calculate the amount new text end 41.25 new text begin of the cost-of-living adjustment by dividing the most recent average third quarter index new text end 41.26 new text begin value by the same average third quarter index value from the previous year, subtract one new text end 41.27 new text begin from the resulting quotient, and express the result as a percentage amount, which must be new text end 41.28 new text begin rounded to the nearest one-tenth of one percent. new text end 41.29 new text begin (d) The amount calculated under paragraph (c) is the full cost-of-living adjustment new text end 41.30 new text begin to be applied as a permanent increase to the regular payment of each eligible member new text end 41.31 new text begin on January 1 of the next calendar year. For any eligible member whose effective date new text end 41.32 new text begin of benefit commencement occurred during the calendar year before the cost-of-living new text end 41.33 new text begin adjustment is applied, the full increase amount must be prorated on the basis of whole new text end 41.34 new text begin calendar quarters in benefit payment status in the calendar year prior to the January 1 on new text end 41.35 new text begin which the cost-of-living adjustment is applied, calculated to the third decimal place. new text end 42.1 new text begin (e) The adjustment must not be less than zero nor greater than five percent. new text end 42.2 new text begin (f) If the funding ratio of the plan as determined in the most recent actuarial new text end 42.3 new text begin valuation using the actuarial value of assets is less than 80 percent there will be no new text end 42.4 new text begin postretirement adjustment the following January 1. new text end 42.5 new text begin EFFECTIVE DATE. new text end new text begin This section is effective July 1, 2010. new text end 42.6    Sec. 62. Minnesota Statutes 2008, section 354A.31, subdivision 1, is amended to read: 42.7    Subdivision 1. Age and service requirements. Any coordinated member or former 42.8coordinated member new text begin of the St. Paul Teachers Retirement Fund Association new text end who has 42.9ceased to render teaching service for the school district in which the teachers retirement 42.10fund association exists and who has either attained the age of at least 55 years with not 42.11less than three years of allowable service credit or received credit for not less than 30 42.12years of allowable service regardless of age, shall be entitled upon written application to a 42.13retirement annuity. new text begin Any coordinated member or former coordinated member of the Duluth new text end 42.14 new text begin Teachers Retirement Fund Association who has ceased to render teaching service for the new text end 42.15 new text begin school district in which the teacher retirement fund association exists and who has either new text end 42.16 new text begin attained the age of at least 55 years with not less than three years of allowable service new text end 42.17 new text begin credit if the member became an employee before July 1, 2010, or not less than five years new text end 42.18 new text begin of allowable service credit if the member became an employee after June 30, 2010, or new text end 42.19 new text begin received service credit for not less than 30 years of allowable service regardless of age, new text end 42.20 new text begin shall be entitled upon written application to a retirement annuity. new text end 42.21 new text begin EFFECTIVE DATE. new text end new text begin This section is effective July 1, 2010. new text end 42.22    Sec. 63. Minnesota Statutes 2008, section 354A.35, subdivision 1, is amended to read: 42.23    Subdivision 1. Death before retirement; refund. If a coordinated member 42.24or former coordinated member dies prior to retirement or prior to the receipt of any 42.25retirement annuity or other benefit payment which is or may be payable and a surviving 42.26spouse optional annuity is not payable pursuant to subdivision 2, a refund shall be paid to 42.27the person's surviving spouse, or if there is none, to the person's designated beneficiary, 42.28or if there is none, to the legal representative of the person's estate. new text begin For a coordinated new text end 42.29 new text begin member or former coordinated member of the St. Paul Teachers Retirement Fund new text end 42.30 new text begin Association, new text end the refund shall be in an amount equal to the person's accumulated new text begin employee new text end 42.31contributions plus interest at the rate of six percent per annum compounded annually. new text begin For new text end 42.32 new text begin a coordinated member or former coordinated member of the Duluth Teachers Retirement new text end 42.33 new text begin Fund Association, the refund shall be in an amount equal to the person's accumulated new text end 43.1 new text begin employee contributions plus interest at the rate of six percent per annum compounded new text end 43.2 new text begin annually to July 1, 2010, and four percent per annum compounded annually thereafter. new text end 43.3 new text begin EFFECTIVE DATE. new text end new text begin This section is effective July 1, 2010. new text end 43.4    Sec. 64. Minnesota Statutes 2008, section 354A.37, subdivision 2, is amended to read: 43.5    Subd. 2. Eligibility for deferred retirement annuity. (a) Any coordinated member 43.6who ceases to render teaching services for the school district in which the teachers 43.7retirement fund association is located, with sufficient allowable service credit to meet 43.8the minimum service requirements specified in section 354A.31, subdivision 1, shall be 43.9entitled to a deferred retirement annuity in lieu of a refund pursuant to subdivision 1. The 43.10deferred retirement annuity shall be computed pursuant to section 354A.31 and shall be 43.11augmented as provided in this subdivision. The deferred annuity shall commence upon 43.12application after the person on deferred status attains at least the minimum age specified in 43.13section 354A.31, subdivision 1. 43.14(b) The monthly annuity amount that had accrued when the member ceased to 43.15render teaching service must be augmented from the first day of the month following the 43.16month during which the member ceased to render teaching service to the effective date 43.17of retirement. There is no augmentation if this period is less than three months. new text begin For a new text end 43.18 new text begin member of the St. Paul Teachers Retirement Fund Association, new text end the rate of augmentation 43.19is three percent compounded annually until January 1 of the year following the year in 43.20which the former member attains age 55, and five percent compounded annually after that 43.21date to the effective date of retirement if the employee became an employee before July 43.221, 2006, and at 2.5 percent compounded annually if the employee becomes an employee 43.23after June 30, 2006. new text begin For a member of the Duluth Teachers Retirement Fund Association, new text end 43.24 new text begin the rate of augmentation is three percent compounded annually until January 1 of the year new text end 43.25 new text begin following the year in which the former member attains age 55, five percent compounded new text end 43.26 new text begin annually after that date to July 1, 2012, and two percent compounded annually after that new text end 43.27 new text begin date to the effective date of retirement if the employee became an employee before new text end 43.28 new text begin July 1, 2006, and at 2.5 percent compounded annually to July 1, 2012, and two percent new text end 43.29 new text begin compounded annually after that date to the effective date of retirement if the employee new text end 43.30 new text begin becomes an employee after June 30, 2006. new text end If a person has more than one period of 43.31uninterrupted service, a separate average salary determined under section 354A.31 must 43.32be used for each period, and the monthly annuity amount related to each period must be 43.33augmented as provided in this subdivision. The sum of the augmented monthly annuity 43.34amounts determines the total deferred annuity payable. If a person repays a refund, the 43.35service restored by the repayment must be considered as continuous with the next period 44.1of service for which the person has credit with the fund. If a person does not render 44.2teaching services in any one fiscal year or more consecutive fiscal years and then resumes 44.3teaching service, the formula percentages used from the date of resumption of teaching 44.4service are those applicable to new members. The mortality table and interest assumption 44.5used to compute the annuity are the table established by the fund to compute other 44.6annuities, and the interest assumption under section 356.215 in effect when the member 44.7retires. A period of uninterrupted service for the purpose of this subdivision means a 44.8period of covered teaching service during which the member has not been separated from 44.9active service for more than one fiscal year. 44.10(c) The augmentation provided by this subdivision applies to the benefit provided 44.11in section 354A.35, subdivision 2. The augmentation provided by this subdivision does 44.12not apply to any period in which a person is on an approved leave of absence from an 44.13employer unit. 44.14 new text begin EFFECTIVE DATE. new text end new text begin This section is effective July 1, 2010. new text end 44.15    Sec. 65. Minnesota Statutes 2008, section 354A.37, subdivision 3, is amended to read: 44.16    Subd. 3. Computation of refund amount. A former coordinated member new text begin of the new text end 44.17 new text begin St. Paul Teachers Retirement Fund Association new text end who qualifies for a refund pursuant to 44.18 new text begin under new text end subdivision 1 shall receive a refund equal to the amount of the former coordinated 44.19member's accumulated new text begin employee new text end contributions with interest at the rate of six percent per 44.20annum compounded annually. new text begin A former coordinated member of the Duluth Teachers new text end 44.21 new text begin Retirement Fund Association who qualifies for a refund under subdivision 1 shall receive new text end 44.22 new text begin a refund equal to the amount of the former coordinated member's accumulated employee new text end 44.23 new text begin contributions with interest at the rate of six percent per annum compounded annually to new text end 44.24 new text begin July 1, 2010, and four percent per annum compounded annually thereafter. new text end 44.25 new text begin EFFECTIVE DATE. new text end new text begin This section is effective July 1, 2010. new text end 44.26    Sec. 66. Minnesota Statutes 2008, section 354A.37, subdivision 4, is amended to read: 44.27    Subd. 4. Certain refunds at normal retirement age. Any coordinated member 44.28who has attained the normal retirement age with less than ten years of allowable service 44.29credit and has terminated active teaching service shall be entitled to a refund in lieu of 44.30a proportionate annuity pursuant to section 356.32. The refund new text begin for a member of the St. new text end 44.31 new text begin Paul Teachers Retirement Fund Association new text end shall be equal to the coordinated member's 44.32accumulated employee contributions plus interest at the rate of six percent compounded 44.33annually. new text begin The refund for a member of the Duluth Teachers Retirement Fund Association new text end 45.1 new text begin shall be equal to the coordinated member's accumulated employee contributions plus new text end 45.2 new text begin interest at the rate of six percent compounded annually to July 1, 2010, and four percent new text end 45.3 new text begin per annum compounded annually thereafter. new text end 45.4 new text begin EFFECTIVE DATE. new text end new text begin This section is effective July 1, 2010. new text end 45.5    Sec. 67. Minnesota Statutes 2008, section 356.215, subdivision 8, is amended to read: 45.6    Subd. 8. Interest and salary assumptions. (a) The actuarial valuation must use 45.7the applicable following preretirement interest assumption and the applicable following 45.8postretirement interest assumption: 45.9 45.10 45.11 plan preretirement interest rate assumption postretirement interest rate assumption 45.12 general state employees retirement plan 8.5% 6.0% 45.13 correctional state employees retirement plan 8.5 6.0 45.14 State Patrol retirement plan 8.5 6.0 45.15 legislators retirement plan 8.5 6.0 45.16 elective state officers retirement plan 8.5 6.0 45.17 judges retirement plan 8.5 6.0 45.18 general public employees retirement plan 8.5 6.0 45.19 public employees police and fire retirement plan 8.5 6.0 45.20 45.21 local government correctional service retirement plan 8.5 6.0 45.22 teachers retirement plan 8.5 6.0 45.23 Minneapolis employees retirement plan 6.0 5.0 45.24 Duluth teachers retirement plan 8.5 8.5 45.25 St. Paul teachers retirement plan 8.5 8.5 45.26 Minneapolis Police Relief Association 6.0 6.0 45.27 Fairmont Police Relief Association 5.0 5.0 45.28 Minneapolis Fire Department Relief Association 6.0 6.0 45.29 Virginia Fire Department Relief Association 5.0 5.0 45.30 Bloomington Fire Department Relief Association 6.0 6.0 45.31 45.32 local monthly benefit volunteer firefighters relief associations 5.0 5.0 45.33    (b) Before July 1, 2010, the actuarial valuation must use the applicable following 45.34single rate future salary increase assumption, the applicable following modified single 45.35rate future salary increase assumption, or the applicable following graded rate future 45.36salary increase assumption: 45.37    (1) single rate future salary increase assumption 46.1 46.2 plan future salary increase assumption 46.3 legislators retirement plan 5.0% 46.4 judges retirement plan 4.0 46.5 Minneapolis Police Relief Association 4.0 46.6 Fairmont Police Relief Association 3.5 46.7 46.8 Minneapolis Fire Department Relief Association 4.0 46.9 Virginia Fire Department Relief Association 3.5 46.10 46.11 Bloomington Fire Department Relief Association 4.0 46.12    (2) modified single rate future salary increase assumption 46.13 46.14 plan future salary increase assumption 46.15 46.16 46.17 46.18 Minneapolis employees retirement plan the prior calendar year amount increased first by 1.0198 percent to prior fiscal year date and then increased by 4.0 percent annually for each future year 46.19    (3) new text begin age-related new text end select and ultimate future salary increase assumption or graded rate 46.20future salary increase assumption 46.21 46.22 plan future salary increase assumption 46.23 46.24 general state employees retirement plan select calculation and assumption A 46.25 correctional state employees retirement plan assumption H new text begin G new text end 46.26 State Patrol retirement plan assumption G new text begin F new text end 46.27 46.28 general public employees retirement plan select calculation and assumption B 46.29 public employees police and fire fund retirement plan assumption C new text begin B new text end 46.30 local government correctional service retirement plan assumption G new text begin F new text end 46.31 teachers retirement plan assumption D new text begin C new text end 46.32 Duluth teachers retirement plan assumption E new text begin D new text end 46.33 St. Paul teachers retirement plan assumption F new text begin E new text end 46.34The select calculation is: during the 46.35designated select period, a designated 46.36percentage rate is multiplied by the result of 46.37the designated integer minus T, where T is the 46.38number of completed years of service, and is 46.39added to the applicable future salary increase 46.40assumption. The designated select period is 46.41five years and the designated integer is five 46.42for the general state employees retirement 47.1plan and the general public employees 47.2retirement plan. The designated select period 47.3is ten years and the designated integer is ten 47.4for all other retirement plans covered by 47.5this clause. The designated percentage rate 47.6is: (1) 0.2 percent for the correctional state 47.7employees retirement plan, the State Patrol 47.8retirement plan, the public employees police 47.9and fire plan, and the local government 47.10correctional service plan; (2) 0.6 percent 47.11for the general state employees retirement 47.12plan and the general public employees 47.13retirement plan; and (3) 0.3 percent for the 47.14teachers retirement plan, the Duluth Teachers 47.15Retirement Fund Association, and the St. 47.16Paul Teachers Retirement Fund Association. 47.17The select calculation for the Duluth Teachers 47.18Retirement Fund Association is 8.00 percent 47.19per year for service years one through seven, 47.207.25 percent per year for service years seven 47.21and eight, and 6.50 percent per year for 47.22service years eight and nine. 47.23    The ultimate future salary increase assumption is: 47.24 age A B C new text begin B new text end D new text begin C new text end E new text begin D new text end F new text begin E new text end G new text begin F new text end H new text begin G new text end 47.25 16 5.95% 5.95% 11.00% 7.70% 8.00% 6.90% 7.7500% 7.2500% 47.26 17 5.90 5.90 11.00 7.65 8.00 6.90 7.7500 7.2500 47.27 18 5.85 5.85 11.00 7.60 8.00 6.90 7.7500 7.2500 47.28 19 5.80 5.80 11.00 7.55 8.00 6.90 7.7500 7.2500 47.29 20 5.75 5.40 11.00 5.50 6.90 6.90 7.7500 7.2500 47.30 21 5.75 5.40 11.00 5.50 6.90 6.90 7.1454 6.6454 47.31 22 5.75 5.40 10.50 5.50 6.90 6.90 7.0725 6.5725 47.32 23 5.75 5.40 10.00 5.50 6.85 6.85 7.0544 6.5544 47.33 24 5.75 5.40 9.50 5.50 6.80 6.80 7.0363 6.5363 47.34 25 5.75 5.40 9.00 5.50 6.75 6.75 7.0000 6.5000 47.35 26 5.75 5.36 8.70 5.50 6.70 6.70 7.0000 6.5000 47.36 27 5.75 5.32 8.40 5.50 6.65 6.65 7.0000 6.5000 47.37 28 5.75 5.28 8.10 5.50 6.60 6.60 7.0000 6.5000 47.38 29 5.75 5.24 7.80 5.50 6.55 6.55 7.0000 6.5000 47.39 30 5.75 5.20 7.50 5.50 6.50 6.50 7.0000 6.5000 48.1 31 5.75 5.16 7.30 5.50 6.45 6.45 7.0000 6.5000 48.2 32 5.75 5.12 7.10 5.50 6.40 6.40 7.0000 6.5000 48.3 33 5.75 5.08 6.90 5.50 6.35 6.35 7.0000 6.5000 48.4 34 5.75 5.04 6.70 5.50 6.30 6.30 7.0000 6.5000 48.5 35 5.75 5.00 6.50 5.50 6.25 6.25 7.0000 6.5000 48.6 36 5.75 4.96 6.30 5.50 6.20 6.20 6.9019 6.4019 48.7 37 5.75 4.92 6.10 5.50 6.15 6.15 6.8074 6.3074 48.8 38 5.75 4.88 5.90 5.40 6.10 6.10 6.7125 6.2125 48.9 39 5.75 4.84 5.70 5.30 6.05 6.05 6.6054 6.1054 48.10 40 5.75 4.80 5.50 5.20 6.00 6.00 6.5000 6.0000 48.11 41 5.75 4.76 5.40 5.10 5.90 5.95 6.3540 5.8540 48.12 42 5.75 4.72 5.30 5.00 5.80 5.90 6.2087 5.7087 48.13 43 5.65 4.68 5.20 4.90 5.70 5.85 6.0622 5.5622 48.14 44 5.55 4.64 5.10 4.80 5.60 5.80 5.9048 5.4078 48.15 45 5.45 4.60 5.00 4.70 5.50 5.75 5.7500 5.2500 48.16 46 5.35 4.56 4.95 4.60 5.40 5.70 5.6940 5.1940 48.17 47 5.25 4.52 4.90 4.50 5.30 5.65 5.6375 5.1375 48.18 48 5.15 4.48 4.85 4.50 5.20 5.60 5.5822 5.0822 48.19 49 5.05 4.44 4.80 4.50 5.10 5.55 5.5404 5.0404 48.20 50 4.95 4.40 4.75 4.50 5.00 5.50 5.5000 5.0000 48.21 51 4.85 4.36 4.75 4.50 4.90 5.45 5.4384 4.9384 48.22 52 4.75 4.32 4.75 4.50 4.80 5.40 5.3776 4.8776 48.23 53 4.65 4.28 4.75 4.50 4.70 5.35 5.3167 4.8167 48.24 54 4.55 4.24 4.75 4.50 4.60 5.30 5.2826 4.7826 48.25 55 4.45 4.20 4.75 4.50 4.50 5.25 5.2500 4.7500 48.26 56 4.35 4.16 4.75 4.50 4.40 5.20 5.2500 4.7500 48.27 57 4.25 4.12 4.75 4.50 4.30 5.15 5.2500 4.7500 48.28 58 4.25 4.08 4.75 4.60 4.20 5.10 5.2500 4.7500 48.29 59 4.25 4.04 4.75 4.70 4.10 5.05 5.2500 4.7500 48.30 60 4.25 4.00 4.75 4.80 4.00 5.00 5.2500 4.7500 48.31 61 4.25 4.00 4.75 4.90 3.90 5.00 5.2500 4.7500 48.32 62 4.25 4.00 4.75 5.00 3.80 5.00 5.2500 4.7500 48.33 63 4.25 4.00 4.75 5.10 3.70 5.00 5.2500 4.7500 48.34 64 4.25 4.00 4.75 5.20 3.60 5.00 5.2500 4.7500 48.35 65 4.25 4.00 4.75 5.20 3.50 5.00 5.2500 4.7500 48.36 66 4.25 4.00 4.75 5.20 3.50 5.00 5.2500 4.7500 48.37 67 4.25 4.00 4.75 5.20 3.50 5.00 5.2500 4.7500 48.38 68 4.25 4.00 4.75 5.20 3.50 5.00 5.2500 4.7500 48.39 69 4.25 4.00 4.75 5.20 3.50 5.00 5.2500 4.7500 48.40 70 4.25 4.00 4.75 5.20 3.50 5.00 5.2500 4.7500 48.41 71 4.25 4.00 5.20 48.42 new text begin (4) service-related ultimate future salary increase assumption new text end 49.1 49.2 new text begin service length new text end new text begin general employees retirement plan of the Public new text end new text begin Employees Retirement Association new text end 49.3 new text begin 1 new text end new text begin 12.03% new text end 49.4 new text begin 2 new text end new text begin 8.90 new text end 49.5 new text begin 3 new text end new text begin 7.46 new text end 49.6 new text begin 4 new text end new text begin 6.58 new text end 49.7 new text begin 5 new text end new text begin 5.97 new text end 49.8 new text begin 6 new text end new text begin 5.52 new text end 49.9 new text begin 7 new text end new text begin 5.16 new text end 49.10 new text begin 8 new text end new text begin 4.87 new text end 49.11 new text begin 9 new text end new text begin 4.63 new text end 49.12 new text begin 10 new text end new text begin 4.42 new text end 49.13 new text begin 11 new text end new text begin 4.24 new text end 49.14 new text begin 12 new text end new text begin 4.08 new text end 49.15 new text begin 13 new text end new text begin 3.94 new text end 49.16 new text begin 14 new text end new text begin 3.82 new text end 49.17 new text begin 15 new text end new text begin 3.70 new text end 49.18 new text begin 16 new text end new text begin 3.60 new text end 49.19 new text begin 17 new text end new text begin 3.51 new text end 49.20 new text begin 18 new text end new text begin 3.50 new text end 49.21 new text begin 19 new text end new text begin 3.50 new text end 49.22 new text begin 20 new text end new text begin 3.50 new text end 49.23 new text begin 21 new text end new text begin 3.50 new text end 49.24 new text begin 22 new text end new text begin 3.50 new text end 49.25 new text begin 23 new text end new text begin 3.50 new text end 49.26 new text begin 24 new text end new text begin 3.50 new text end 49.27 new text begin 25 new text end new text begin 3.50 new text end 49.28 new text begin 26 new text end new text begin 3.50 new text end 49.29 new text begin 27 new text end new text begin 3.50 new text end 49.30 new text begin 28 new text end new text begin 3.50 new text end 49.31 new text begin 29 new text end new text begin 3.50 new text end 49.32 new text begin 30 or more new text end new text begin 3.50 new text end 49.33    (c) Before July 2, 2010, the actuarial valuation must use the applicable following 49.34payroll growth assumption for calculating the amortization requirement for the unfunded 49.35actuarial accrued liability where the amortization retirement is calculated as a level 49.36percentage of an increasing payroll: 49.37 49.38 plan payroll growth assumption 49.39 general state employees retirement plan 4.50% 49.40 correctional state employees retirement plan 4.50 49.41 State Patrol retirement plan 4.50 49.42 legislators retirement plan 4.50 50.1 judges retirement plan 4.00 50.2 50.3 general public employees retirement plan new text begin of the new text end new text begin Public Employees Retirement Association new text end 4.50 new text begin 4.00 new text end 50.4 public employees police and fire retirement plan 4.50 50.5 50.6 local government correctional service retirement plan 4.50 50.7 teachers retirement plan 4.50 50.8 Duluth teachers retirement plan 4.50 50.9 St. Paul teachers retirement plan 5.00 50.10    (d) After July 1, 2010, the assumptions set forth in paragraphs (b) and (c) continue to 50.11apply, unless a different salary assumption or a different payroll increase assumption: 50.12    (1) has been proposed by the governing board of the applicable retirement plan; 50.13    (2) is accompanied by the concurring recommendation of the actuary retained under 50.14section 356.214, subdivision 1, if applicable, or by the approved actuary preparing the 50.15most recent actuarial valuation report if section 356.214 does not apply; and 50.16    (3) has been approved or deemed approved under subdivision 18. 50.17 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 50.18    Sec. 68. Minnesota Statutes 2009 Supplement, section 356.215, subdivision 11, 50.19is amended to read: 50.20    Subd. 11. Amortization contributions. (a) In addition to the exhibit indicating 50.21the level normal cost, the actuarial valuation of the retirement plan must contain an 50.22exhibit for financial reporting purposes indicating the additional annual contribution 50.23sufficient to amortize the unfunded actuarial accrued liability and must contain an exhibit 50.24for contribution determination purposes indicating the additional contribution sufficient 50.25to amortize the unfunded actuarial accrued liability. For the retirement plans listed in 50.26subdivision 8, paragraph (c), the additional contribution must be calculated on a level 50.27percentage of covered payroll basis by the established date for full funding in effect when 50.28the valuation is prepared, assuming annual payroll growth at the applicable percentage 50.29rate set forth in subdivision 8, paragraph (c). For all other retirement plans, the additional 50.30annual contribution must be calculated on a level annual dollar amount basis. 50.31    (b) For any retirement plan other than the Minneapolis Employees Retirement Fund, 50.32the general employees retirement plan of the Public Employees Retirement Association, 50.33 new text begin the general state employees retirement plan of the Minnesota State Retirement System, new text end 50.34and the St. Paul Teachers Retirement Fund Association, if there has not been a change in 50.35the actuarial assumptions used for calculating the actuarial accrued liability of the fund, a 50.36change in the benefit plan governing annuities and benefits payable from the fund, a 51.1change in the actuarial cost method used in calculating the actuarial accrued liability of all 51.2or a portion of the fund, or a combination of the three, which change or changes by itself 51.3or by themselves without inclusion of any other items of increase or decrease produce a 51.4net increase in the unfunded actuarial accrued liability of the fund, the established date for 51.5full funding is the first actuarial valuation date occurring after June 1, 2020. 51.6    (c) For any retirement plan other than the Minneapolis Employees Retirement 51.7Fund and the general employees retirement plan of the Public Employees Retirement 51.8Association, if there has been a change in any or all of the actuarial assumptions used 51.9for calculating the actuarial accrued liability of the fund, a change in the benefit plan 51.10governing annuities and benefits payable from the fund, a change in the actuarial cost 51.11method used in calculating the actuarial accrued liability of all or a portion of the fund, 51.12or a combination of the three, and the change or changes, by itself or by themselves and 51.13without inclusion of any other items of increase or decrease, produce a net increase in the 51.14unfunded actuarial accrued liability in the fund, the established date for full funding must 51.15be determined using the following procedure: 51.16    (i) the unfunded actuarial accrued liability of the fund must be determined in 51.17accordance with the plan provisions governing annuities and retirement benefits and the 51.18actuarial assumptions in effect before an applicable change; 51.19    (ii) the level annual dollar contribution or level percentage, whichever is applicable, 51.20needed to amortize the unfunded actuarial accrued liability amount determined under item 51.21(i) by the established date for full funding in effect before the change must be calculated 51.22using the interest assumption specified in subdivision 8 in effect before the change; 51.23    (iii) the unfunded actuarial accrued liability of the fund must be determined in 51.24accordance with any new plan provisions governing annuities and benefits payable from 51.25the fund and any new actuarial assumptions and the remaining plan provisions governing 51.26annuities and benefits payable from the fund and actuarial assumptions in effect before 51.27the change; 51.28    (iv) the level annual dollar contribution or level percentage, whichever is applicable, 51.29needed to amortize the difference between the unfunded actuarial accrued liability amount 51.30calculated under item (i) and the unfunded actuarial accrued liability amount calculated 51.31under item (iii) over a period of 30 years from the end of the plan year in which the 51.32applicable change is effective must be calculated using the applicable interest assumption 51.33specified in subdivision 8 in effect after any applicable change; 51.34    (v) the level annual dollar or level percentage amortization contribution under item 51.35(iv) must be added to the level annual dollar amortization contribution or level percentage 51.36calculated under item (ii); 52.1    (vi) the period in which the unfunded actuarial accrued liability amount determined 52.2in item (iii) is amortized by the total level annual dollar or level percentage amortization 52.3contribution computed under item (v) must be calculated using the interest assumption 52.4specified in subdivision 8 in effect after any applicable change, rounded to the nearest 52.5integral number of years, but not to exceed 30 years from the end of the plan year in 52.6which the determination of the established date for full funding using the procedure set 52.7forth in this clause is made and not to be less than the period of years beginning in the 52.8plan year in which the determination of the established date for full funding using the 52.9procedure set forth in this clause is made and ending by the date for full funding in effect 52.10before the change; and 52.11    (vii) the period determined under item (vi) must be added to the date as of which 52.12the actuarial valuation was prepared and the date obtained is the new established date 52.13for full funding. 52.14    (d) For the Minneapolis Employees Retirement Fund, the established date for full 52.15funding is June 30, 2020. 52.16    (e) For the general employees retirement plan of the Public Employees Retirement 52.17Association, the established date for full funding is June 30, 2031. 52.18    (f) For the Teachers Retirement Association, the established date for full funding is 52.19June 30, 2037. 52.20    (g) For the correctional state employees retirement plan of the Minnesota State 52.21Retirement System, the established date for full funding is June 30, 2038. 52.22    (h) For the judges retirement plan, the established date for full funding is June 52.2330, 2038. 52.24    (i) For the public employees police and fire retirement plan, the established date 52.25for full funding is June 30, 2038. 52.26    (j) For the St. Paul Teachers Retirement Fund Association, the established date for 52.27full funding is June 30 of the 25th year from the valuation date. In addition to other 52.28requirements of this chapter, the annual actuarial valuation shall contain an exhibit 52.29indicating the funded ratio and the deficiency or sufficiency in annual contributions when 52.30comparing liabilities to the market value of the assets of the fund as of the close of the 52.31most recent fiscal year. 52.32    (k) new text begin For the general state employees retirement plan of the Minnesota State new text end 52.33 new text begin Retirement System, the established date for full funding is June 30, 2040. new text end 52.34 new text begin (l) new text end For the retirement plans for which the annual actuarial valuation indicates an 52.35excess of valuation assets over the actuarial accrued liability, the valuation assets in 52.36excess of the actuarial accrued liability must be recognized as a reduction in the current 53.1contribution requirements by an amount equal to the amortization of the excess expressed 53.2as a level percentage of pay over a 30-year period beginning anew with each annual 53.3actuarial valuation of the plan. 53.4 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 53.5    Sec. 69. Minnesota Statutes 2008, section 356.30, subdivision 1, is amended to read: 53.6    Subdivision 1. Eligibility; computation of annuity. (a) Notwithstanding any 53.7provisions of the laws governing the retirement plans enumerated in subdivision 3, a 53.8person who has met the qualifications of paragraph (b) may elect to receive a retirement 53.9annuity from each enumerated retirement plan in which the person has at least one-half 53.10year of allowable service, based on the allowable service in each plan, subject to the 53.11provisions of paragraph (c). 53.12(b) A person may receive, upon retirement, a retirement annuity from each 53.13enumerated retirement plan in which the person has at least one-half year of allowable 53.14service, and augmentation of a deferred annuity calculated at the appropriate rate under 53.15the laws governing each public pension plan or fund named in subdivision 3, based on 53.16the date of the person's initial entry into public employment from the date the person 53.17terminated all public service if: 53.18(1) the person has allowable service totaling an amount that allows the person to 53.19receive an annuity in any two or more of the enumerated plans; 53.20 new text begin (2) the person has sufficient allowable service in total that equals or exceeds the new text end 53.21 new text begin applicable service credit vesting requirement of the retirement plan with the longest new text end 53.22 new text begin applicable service credit vesting requirement; new text end and 53.23(2) new text begin (3) new text end the person has not begun to receive an annuity from any enumerated plan or 53.24the person has made application for benefits from each applicable plan and the effective 53.25dates of the retirement annuity with each plan under which the person chooses to receive 53.26an annuity are within a one-year period. 53.27(c) The retirement annuity from each plan must be based upon the allowable service, 53.28accrual rates, and average salary in the applicable plan except as further specified or 53.29modified in the following clauses: 53.30(1) the laws governing annuities must be the law in effect on the date of termination 53.31from the last period of public service under a covered retirement plan with which the 53.32person earned a minimum of one-half year of allowable service credit during that 53.33employment; 54.1(2) the "average salary" on which the annuity from each covered plan in which 54.2the employee has credit in a formula plan must be based on the employee's highest five 54.3successive years of covered salary during the entire service in covered plans; 54.4(3) the accrual rates to be used by each plan must be those percentages prescribed by 54.5each plan's formula as continued for the respective years of allowable service from one 54.6plan to the next, recognizing all previous allowable service with the other covered plans; 54.7(4) the allowable service in all the plans must be combined in determining eligibility 54.8for and the application of each plan's provisions in respect to reduction in the annuity 54.9amount for retirement prior to normal retirement age; and 54.10(5) the annuity amount payable for any allowable service under a nonformula plan 54.11of a covered plan must not be affected, but such service and covered salary must be used 54.12in the above calculation. 54.13(d) This section does not apply to any person whose final termination from the last 54.14public service under a covered plan was before May 1, 1975. 54.15(e) For the purpose of computing annuities under this section, the accrual rates 54.16used by any covered plan, except the public employees police and fire plan, the judges 54.17retirement fund, and the State Patrol retirement plan, must not exceed the percent specified 54.18in section 356.315, subdivision 4, per year of service for any year of service or fraction 54.19thereof. The formula percentage used by the judges retirement fund must not exceed the 54.20percentage rate specified in section 356.315, subdivision 8, per year of service for any 54.21year of service or fraction thereof. The accrual rate used by the public employees police 54.22and fire plan and the State Patrol retirement plan must not exceed the percentage rate 54.23specified in section 356.315, subdivision 6, per year of service for any year of service or 54.24fraction thereof. The accrual rate or rates used by the legislators retirement plan must not 54.25exceed 2.5 percent, but this limit does not apply to the adjustment provided under section 54.263A.02, subdivision 1 , paragraph (c). 54.27(f) Any period of time for which a person has credit in more than one of the covered 54.28plans must be used only once for the purpose of determining total allowable service. 54.29(g) If the period of duplicated service credit is more than one-half year, or the person 54.30has credit for more than one-half year, with each of the plans, each plan must apply its 54.31formula to a prorated service credit for the period of duplicated service based on a fraction 54.32of the salary on which deductions were paid to that fund for the period divided by the total 54.33salary on which deductions were paid to all plans for the period. 54.34(h) If the period of duplicated service credit is less than one-half year, or when 54.35added to other service credit with that plan is less than one-half year, the service credit 55.1must be ignored and a refund of contributions made to the person in accord with that 55.2plan's refund provisions. 55.3 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 55.4    Sec. 70. Minnesota Statutes 2008, section 356.302, subdivision 3, is amended to read: 55.5    Subd. 3. General employee plan eligibility requirements. A disabled member 55.6of a covered retirement plan who has credit for allowable service in a combination of 55.7general employee retirement plans is entitled to a combined service disability benefit 55.8if the member: 55.9(1) is less than the normal retirement age on the date of the application for the 55.10disability benefit; 55.11(2) has become totally and permanently disabled; 55.12(3) has credit for allowable service in any combination of general employee 55.13retirement plans totaling at least three years new text begin the number of years required by the applicable new text end 55.14 new text begin retirement plan with the longest service credit requirement for disability benefit receipt new text end ; 55.15(4) has credit for at least one-half year of allowable service with the current general 55.16employee retirement plan before the commencement of the disability; 55.17(5) has at least three continuous years of allowable service credit by the general 55.18employee retirement plan or has at least a total of three years of allowable service credit 55.19by a combination of general employee retirement plans in a 72-month period during 55.20which no interruption of allowable service credit from a termination of employment 55.21exceeded 29 days; and 55.22(6) was not receiving a retirement annuity or disability benefit from any covered 55.23general employee retirement plan at the time of the commencement of the disability. 55.24 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 55.25    Sec. 71. Minnesota Statutes 2008, section 356.302, subdivision 4, is amended to read: 55.26    Subd. 4. Public safety plan eligibility requirements. A disabled member of a 55.27covered retirement plan who has credit for allowable service in a combination of public 55.28safety employee retirement plans is entitled to a combined service disability benefit if the 55.29member: 55.30(1) has become occupationally disabled; 55.31(2) has credit for allowable service in any combination of public safety employee 55.32retirement plans totaling at least one year new text begin the minimum period of service credit required by new text end 55.33 new text begin the applicable retirement plan with the longest service credit eligibility requirement for the new text end 56.1 new text begin receipt of a duty-related disability benefit new text end if the disability is duty-related or totaling at least 56.2three years new text begin the minimum period of service credit required by the applicable retirement new text end 56.3 new text begin plan with the longest service credit eligibility requirement for a disability benefit that is new text end 56.4 new text begin not duty-related new text end if the disability is not duty-related; 56.5(3) has credit for at least one-half year of allowable service with the current public 56.6safety employee retirement plan before the commencement of the disability; and 56.7(4) was not receiving a retirement annuity or disability benefit from any covered 56.8public safety employee retirement plan at the time of the commencement of the disability. 56.9 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 56.10    Sec. 72. Minnesota Statutes 2008, section 356.302, subdivision 5, is amended to read: 56.11    Subd. 5. General and public safety plan eligibility requirements. A disabled 56.12member of a covered retirement plan who has credit for allowable service in a combination 56.13of both a public safety employee retirement plan and general employee retirement plan 56.14must meet the qualifying requirements in subdivisions 3 and 4 to receive a combined 56.15service disability benefit from the applicable general employee and public safety 56.16employee retirement plans, except that the person need only be a member of a covered 56.17retirement plan at the time of the commencement of the disability new text begin , that the person must new text end 56.18 new text begin have allowable service credit for the applicable retirement plan with the longest service new text end 56.19 new text begin credit eligibility requirement for the receipt of a disability benefit, new text end and that the minimum 56.20allowable service requirements of subdivisions 3, clauses (3) and (5), and 4, clauses (3) 56.21and (4), may be met in any combination of covered retirement plans. 56.22 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 56.23    Sec. 73. Minnesota Statutes 2008, section 356.303, subdivision 2, is amended to read: 56.24    Subd. 2. Entitlement; eligibility. Notwithstanding any provision of law to the 56.25contrary governing a covered retirement plan, a person who is the survivor of a deceased 56.26member of a covered retirement plan may receive a combined service survivor benefit 56.27from each covered retirement plan in which the deceased member had credit for at least 56.28one-half year of allowable service if the deceased member: 56.29(1) had credit for sufficient allowable service in any combination of covered 56.30retirement plans to meet any new text begin the new text end minimum allowable service credit requirement of the 56.31 new text begin applicable new text end covered retirement fund new text begin with the longest allowable service credit requirement new text end 56.32for qualification for a survivor benefit or annuity; 57.1(2) had credit for at least one-half year of allowable service with the most recent 57.2covered retirement plan before the date of death and was an active member of that covered 57.3retirement plan on the date of death; and 57.4(3) was not receiving a retirement annuity from any covered retirement plan on the 57.5date of death. 57.6 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 57.7    Sec. 74. Minnesota Statutes 2008, section 356.315, subdivision 5, is amended to read: 57.8    Subd. 5. Correctional plan members. The applicable benefit accrual rate is 2.4 57.9percent new text begin if employed as a correctional state employee before July 1, 2010, or 2.2 percent if new text end 57.10 new text begin employed as a correctional state employee after June 30, 2010 new text end . 57.11 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 57.12    Sec. 75. Minnesota Statutes 2009 Supplement, section 356.415, subdivision 1, is 57.13amended to read: 57.14    Subdivision 1. Annual postretirement adjustments new text begin ; generally new text end . (a) new text begin Except as new text end 57.15 new text begin otherwise provided in subdivision 1a, 1b, 1c, 1d, or 1e, new text end retirement annuity, disability 57.16benefit, or survivor benefit recipients of a covered retirement plan are entitled to a 57.17postretirement adjustment annually on January 1, as follows: 57.18(1) a postretirement increase of 2.5 percent must be applied each year, effective 57.19January 1, to the monthly annuity or benefit of each annuitant or benefit recipient who has 57.20been receiving an annuity or a benefit for at least 12 full months prior to the January 1 57.21increase; and 57.22(2) for each annuitant or benefit recipient who has been receiving an annuity or a 57.23benefit new text begin amount new text end for at least one full month, an annual postretirement increase of 1/12 of 2.5 57.24percent for each month new text begin that new text end the person has been receiving an annuity or benefit must be 57.25applied, effective new text begin on new text end January 1 following the new text begin calendar new text end year in which the person has been 57.26retired for less than 12 months. 57.27(b) The increases provided by this section new text begin subdivision new text end commence on January 1, 2010. 57.28(c) An increase in annuity or benefit payments under this section must be made 57.29automatically unless written notice is filed by the annuitant or benefit recipient with the 57.30executive director of the covered retirement plan requesting that the increase not be made. 57.31(d) The retirement annuity payable to a person who retires before becoming eligible 57.32for Social Security benefits and who has elected the optional payment as provided in 57.33section 353.29, subdivision 6, or must be treated as the sum of a period certain 58.1retirement annuity and a life retirement annuity for the purposes of any postretirement 58.2adjustment. The period certain retirement annuity plus the life retirement annuity must be 58.3the annuity amount payable until age 62 for section 353.29, subdivision 6, or age 62, 65, 58.4or normal retirement age, as selected by the member at retirement, for an annuity amount 58.5payable under section . A postretirement adjustment granted on the period certain 58.6retirement annuity must terminate when the period certain retirement annuity terminates. 58.7 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 58.8    Sec. 76. Minnesota Statutes 2009 Supplement, section 356.415, is amended by adding 58.9a subdivision to read: 58.10     new text begin Subd. 1a. new text end new text begin Annual postretirement adjustments; Minnesota State Retirement new text end 58.11 new text begin System plans other than the State Patrol retirement plan. new text end new text begin (a) Retirement annuity, new text end 58.12 new text begin disability benefit, or survivor benefit recipients of the legislators retirement plan, the new text end 58.13 new text begin general state employees retirement plan, the correctional state employees retirement plan, new text end 58.14 new text begin the elected state officers retirement plan, the unclassified state employees retirement new text end 58.15 new text begin program, and the judges retirement plan are entitled to a postretirement adjustment new text end 58.16 new text begin annually on January 1, as follows: new text end 58.17 new text begin (1) a postretirement increase of two percent must be applied each year, effective on new text end 58.18 new text begin January 1, to the monthly annuity or benefit of each annuitant or benefit recipient who new text end 58.19 new text begin has been receiving an annuity or a benefit for at least 18 full months before the January 1 new text end 58.20 new text begin increase; and new text end 58.21 new text begin (2) for each annuitant or benefit recipient who has been receiving an annuity or new text end 58.22 new text begin a benefit for at least six full months, an annual postretirement increase of 1/12 of two new text end 58.23 new text begin percent for each month that the person has been receiving an annuity or benefit must be new text end 58.24 new text begin applied, effective January 1, following the calendar year in which the person has been new text end 58.25 new text begin retired for at least six months, but has been retired for less than 18 months. new text end 58.26 new text begin (b) The increases provided by this subdivision commence on January 1, 2011. new text end 58.27 new text begin Increases under this subdivision for the general state employees retirement plan, the new text end 58.28 new text begin correctional state employees retirement plan, or the judges retirement plan terminate new text end 58.29 new text begin on December 31 of the calendar year in which the actuarial valuation prepared by the new text end 58.30 new text begin approved actuary under sections 356.214 and 356.215 and the standards for actuarial work new text end 58.31 new text begin promulgated by the Legislative Commission on Pensions and Retirement indicates that the new text end 58.32 new text begin market value of assets of the retirement plan equals or exceeds 90 percent of the actuarial new text end 58.33 new text begin accrued liability of the retirement plan and increases under subdivision 1 recommence new text end 58.34 new text begin after that date. Increases under this subdivision for the legislators retirement plan or the new text end 58.35 new text begin elected state officers retirement plan terminate on December 31 of the calendar year in new text end 59.1 new text begin which the actuarial valuation prepared by the approved actuary under sections 356.214 and new text end 59.2 new text begin 356.215 and the standards for actuarial work promulgated by the Legislative Commission new text end 59.3 new text begin on Pensions and Retirement indicates that the market value of assets of the general state new text end 59.4 new text begin employees retirement plan equals or exceeds 90 percent of the actuarial accrued liability new text end 59.5 new text begin of the retirement plan and increases under subdivision 1 recommence after that date. new text end 59.6 new text begin (c) An increase in annuity or benefit payments under this subdivision must be made new text end 59.7 new text begin automatically unless written notice is filed by the annuitant or benefit recipient with the new text end 59.8 new text begin executive director of the applicable covered retirement plan requesting that the increase new text end 59.9 new text begin not be made. new text end 59.10 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 59.11    Sec. 77. Minnesota Statutes 2009 Supplement, section 356.415, is amended by adding 59.12a subdivision to read: 59.13     new text begin Subd. 1b. new text end new text begin Annual postretirement adjustments; general employees retirement new text end 59.14 new text begin plan and local government correctional retirement plan of the Public Employees new text end 59.15 new text begin Retirement Association. new text end new text begin (a) Retirement annuity, disability benefit, or survivor benefit new text end 59.16 new text begin recipients of the general employees retirement plan of the Public Employees Retirement new text end 59.17 new text begin Association and the local government correctional service retirement plan are entitled to a new text end 59.18 new text begin postretirement adjustment annually on January 1, as follows: new text end 59.19 new text begin (1) for January 1, 2011, and each successive January 1 until funding stability is new text end 59.20 new text begin restored for the applicable retirement plan, a postretirement increase of one percent must new text end 59.21 new text begin be applied each year, effective on January 1, to the monthly annuity or benefit amount of new text end 59.22 new text begin each annuitant or benefit recipient who has been receiving an annuity or benefit for at least new text end 59.23 new text begin 12 full months as of the current June 30; new text end 59.24 new text begin (2) for January 1, 2011, and each successive January 1 until funding stability is new text end 59.25 new text begin restored for the applicable retirement plan, for each annuitant or benefit recipient who has new text end 59.26 new text begin been receiving an annuity or a benefit for at least one full month, but less than 12 full new text end 59.27 new text begin months as of the current June 30, an annual postretirement increase of 1/12 of one percent new text end 59.28 new text begin for each month the person has been receiving an annuity or benefit must be applied; new text end 59.29 new text begin (3) for each January 1 following the restoration of funding stability for the applicable new text end 59.30 new text begin retirement plan, a postretirement increase of 2.5 percent must be applied each year, new text end 59.31 new text begin effective January 1, to the monthly annuity or benefit amount of each annuitant or benefit new text end 59.32 new text begin recipient who has been receiving an annuity or benefit for at least 12 full months as of new text end 59.33 new text begin the current June 30; and new text end 59.34 new text begin (4) for each January 1 following restoration of funding stability for the applicable new text end 59.35 new text begin retirement plan, for each annuity or benefit recipient who has been receiving an annuity or new text end 60.1 new text begin a benefit for at least one full month, but less than 12 full months as of the current June new text end 60.2 new text begin 30, an annual postretirement increase of 1/12 of 2.5 percent for each month the person new text end 60.3 new text begin has been receiving an annuity or benefit must be applied. new text end 60.4 new text begin (b) Funding stability is restored when the market value of assets of the applicable new text end 60.5 new text begin retirement plan equals or exceeds 90 percent of the actuarial accrued liabilities of the new text end 60.6 new text begin applicable plan in the most recent prior actuarial valuation prepared under section 356.215 new text end 60.7 new text begin and the standards for actuarial work by the approved actuary retained by the Public new text end 60.8 new text begin Employees Retirement Association under section 356.214. new text end 60.9 new text begin (c) If, after applying the increase as provided for in paragraph (a), clauses (3) new text end 60.10 new text begin and (4), the market value of the applicable retirement plan is determined in the next new text end 60.11 new text begin subsequent actuarial valuation prepared under section 356.215 to be less than 90 percent new text end 60.12 new text begin of the actuarial accrued liability of any of the applicable Public Employees Retirement new text end 60.13 new text begin Association plans, the increase provided in paragraph (a), clauses (1) and (2), are to be new text end 60.14 new text begin applied as of the next successive January until funding stability is again restored. new text end 60.15 new text begin (d) An increase in annuity or benefit payments under this section must be made new text end 60.16 new text begin automatically unless written notice is filed by the annuitant or benefit recipient with the new text end 60.17 new text begin executive director of the Public Employees Retirement Association requesting that the new text end 60.18 new text begin increase not be made. new text end 60.19 new text begin (e) The retirement annuity payable to a person who retires before becoming eligible new text end 60.20 new text begin for Social Security benefits and who has elected the optional payment, as provided in new text end 60.21 new text begin section 353.29, subdivision 6, must be treated as the sum of a period-certain retirement new text end 60.22 new text begin annuity and a life retirement annuity for the purposes of any postretirement adjustment. new text end 60.23 new text begin The period-certain retirement annuity plus the life retirement annuity must be the new text end 60.24 new text begin annuity amount payable until age 62 for section 353.29, subdivision 6. A postretirement new text end 60.25 new text begin adjustment granted on the period-certain retirement annuity must terminate when the new text end 60.26 new text begin period-certain retirement annuity terminates. new text end 60.27 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 60.28    Sec. 78. Minnesota Statutes 2009 Supplement, section 356.415, is amended by adding 60.29a subdivision to read: 60.30     new text begin Subd. 1c. new text end new text begin Annual postretirement adjustments; PERA-P&F. new text end new text begin (a) Retirement new text end 60.31 new text begin annuity, disability benefit, or survivor benefit recipients of the public employees police new text end 60.32 new text begin and fire retirement plan are entitled to a postretirement adjustment annually on January new text end 60.33 new text begin 1, as follows: new text end 61.1 new text begin (1) for January 1, 2011, and for January 1, 2012, for each annuitant or benefit new text end 61.2 new text begin recipient who has been receiving the annuity or benefit for at least 12 full months as of the new text end 61.3 new text begin immediate preceding June 30, an amount equal to one percent in each year; new text end 61.4 new text begin (2) for January 1, 2011, and for January 1, 2012, for each annuitant or benefit new text end 61.5 new text begin recipient who has been receiving the annuity or benefit for at least one full month as of the new text end 61.6 new text begin immediate preceding June 30, an amount equal to 1/12 of one percent in each year; new text end 61.7 new text begin (3) for January 1, 2013, and each successive January 1 that follows the loss of new text end 61.8 new text begin funding stability as defined under paragraph (b) until funding stability as defined under new text end 61.9 new text begin paragraph (b) is again restored, for each annuitant or benefit recipient who has been new text end 61.10 new text begin receiving the annuity or benefit for at least 12 full months as of the immediate preceding new text end 61.11 new text begin June 30, an amount equal to the percentage increase in the Consumer Price Index for new text end 61.12 new text begin urban wage earners and clerical workers all items index published by the Bureau of Labor new text end 61.13 new text begin Statistics of the United States Department of Labor between the immediate preceding June new text end 61.14 new text begin 30 and the June 30 occurring 12 months previous, but not to exceed 1.5 percent; new text end 61.15 new text begin (4) for January 1, 2013, and each successive January 1 that follows the loss of new text end 61.16 new text begin funding stability as defined under paragraph (b) until funding stability as defined under new text end 61.17 new text begin paragraph (b) is again restored, for each annuitant or benefit recipient who has been new text end 61.18 new text begin receiving the annuity or benefit for at least one full month as of the immediate preceding new text end 61.19 new text begin June 30, an amount equal to 1/12 of the percentage increase in the Consumer Price Index new text end 61.20 new text begin for urban wage earners and clerical workers-all items published by the Bureau of Labor new text end 61.21 new text begin Statistics of the United States Department of Labor between the immediate preceding new text end 61.22 new text begin June 30 and the June 30 occurring 12 months previous for each full month of annuity new text end 61.23 new text begin or benefit receipt, but not to exceed 1/12 of 1.5 percent for each full month of annuity new text end 61.24 new text begin or benefit receipt; new text end 61.25 new text begin (5) for each January 1 following the restoration of funding stability as defined new text end 61.26 new text begin under paragraph (b) and during the continuation of funding stability as defined under new text end 61.27 new text begin paragraph (b), for each annuitant or benefit recipient who has been receiving the annuity new text end 61.28 new text begin or benefit for at least 12 full months as of the immediate preceding June 30, an amount new text end 61.29 new text begin equal to the percentage increase in the Consumer Price Index for urban wage earners and new text end 61.30 new text begin clerical workers-all items published by the Bureau of Labor Statistics of the United States new text end 61.31 new text begin Department of Labor between the immediate preceding June 30 and the June 30 occurring new text end 61.32 new text begin 12 months previous, but not to exceed 2.5 percent; and new text end 61.33 new text begin (6) for each January 1 following the restoration of funding stability as defined under new text end 61.34 new text begin paragraph (b) and during the continuation of funding stability as defined under paragraph new text end 61.35 new text begin (b), for each annuitant or benefit recipient who has been receiving the annuity or benefit new text end 61.36 new text begin for at least one full month as of the immediate preceding June 30, an amount equal to new text end 62.1 new text begin 1/12 of the percentage increase in the Consumer Price Index for urban wage earners and new text end 62.2 new text begin clerical workers-all items published by the Bureau of Labor Statistics of the United States new text end 62.3 new text begin Department of Labor between the immediate preceding June 30 and the June 30 occurring new text end 62.4 new text begin 12 months previous for each full month of annuity or benefit receipt, but not to exceed new text end 62.5 new text begin 1/12 of 2.5 percent for each full month of annuity or benefit receipt. new text end 62.6 new text begin (b) Funding stability is restored when the market value of assets of the public new text end 62.7 new text begin employees police and fire retirement plan equals or exceeds 90 percent of the actuarial new text end 62.8 new text begin accrued liabilities of the applicable plan in the most recent prior actuarial valuation new text end 62.9 new text begin prepared under section 356.215 and under the standards for actuarial work of the new text end 62.10 new text begin Legislative Commission and Pensions and Retirement by the approved actuary retained by new text end 62.11 new text begin the Public Employees Retirement Association under section 356.214. new text end 62.12 new text begin (c) An increase in annuity or benefit payments under this section must be made new text end 62.13 new text begin automatically unless written notice is filed by the annuitant or benefit recipient with the new text end 62.14 new text begin executive director of the Public Employees Retirement Association requesting that the new text end 62.15 new text begin increase not be made. new text end 62.16 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 62.17    Sec. 79. Minnesota Statutes 2009 Supplement, section 356.415, is amended by adding 62.18a subdivision to read: 62.19     new text begin Subd. 1d. new text end new text begin Teachers Retirement Association annual postretirement adjustments. new text end 62.20 new text begin (a) Retirement annuity, disability benefit, or survivor benefit recipients of the Teachers new text end 62.21 new text begin Retirement Association are entitled to a postretirement adjustment annually on January new text end 62.22 new text begin 1, as follows: new text end 62.23 new text begin (1) for January 1, 2011, and January 1, 2012, no postretirement increase is payable; new text end 62.24 new text begin (2) for January 1, 2013, and each successive January 1 until funding stability is new text end 62.25 new text begin restored, a postretirement increase of two percent must be applied each year, effective on new text end 62.26 new text begin January 1, to the monthly annuity or benefit amount of each annuitant or benefit recipient new text end 62.27 new text begin who has been receiving an annuity or a benefit for at least 18 full months prior to the new text end 62.28 new text begin January 1 increase; new text end 62.29 new text begin (3) for January 1, 2013, and each successive January 1 until funding stability is new text end 62.30 new text begin restored, for each annuitant or benefit recipient who has been receiving an annuity or new text end 62.31 new text begin a benefit for at least six full months, an annual postretirement increase of 1/12 of two new text end 62.32 new text begin percent for each month the person has been receiving an annuity or benefit must be new text end 62.33 new text begin applied, effective January 1, following the year in which the person has been retired new text end 62.34 new text begin for less than 12 months; new text end 63.1 new text begin (4) for each January 1 following the restoration of funding stability, a postretirement new text end 63.2 new text begin increase of 2.5 percent must be applied each year, effective January 1, to the monthly new text end 63.3 new text begin annuity or benefit amount of each annuitant or benefit recipient who has been receiving an new text end 63.4 new text begin annuity or a benefit for at least 18 full months prior to the January 1 increase; and new text end 63.5 new text begin (5) for each January 1 following the restoration of funding stability, for each new text end 63.6 new text begin annuitant or benefit recipient who has been receiving an annuity or a benefit for at least new text end 63.7 new text begin six full months, an annual postretirement increase of 1/12 of 2.5 percent for each month new text end 63.8 new text begin the person has been receiving an annuity or benefit must be applied, effective January 1, new text end 63.9 new text begin following the year in which the person has been retired for less than 12 months. new text end 63.10 new text begin (b) Funding stability is restored when the market value of assets of the Teachers new text end 63.11 new text begin Retirement Association equals or exceeds 90 percent of the actuarial accrued liabilities of new text end 63.12 new text begin the Teachers Retirement Association in the most recent prior actuarial valuation prepared new text end 63.13 new text begin under section 356.215 and the standards for actuarial work by the approved actuary new text end 63.14 new text begin retained by the Teachers Retirement Association under section 356.214. new text end 63.15 new text begin (c) An increase in annuity or benefit payments under this section must be made new text end 63.16 new text begin automatically unless written notice is filed by the annuitant or benefit recipient with the new text end 63.17 new text begin executive director of the Teachers Retirement Association requesting that the increase new text end 63.18 new text begin not be made. new text end 63.19 new text begin (d) The retirement annuity payable to a person who retires before becoming eligible new text end 63.20 new text begin for Social Security benefits and who has elected the optional payment as provided in new text end 63.21 new text begin section 354.35 must be treated as the sum of a period-certain retirement annuity and a life new text end 63.22 new text begin retirement annuity for the purposes of any postretirement adjustment. The period-certain new text end 63.23 new text begin retirement annuity plus the life retirement annuity must be the annuity amount payable new text end 63.24 new text begin until age 62, 65, or normal retirement age, as selected by the member at retirement, for an new text end 63.25 new text begin annuity amount payable under section 354.35. A postretirement adjustment granted on new text end 63.26 new text begin the period-certain retirement annuity must terminate when the period-certain retirement new text end 63.27 new text begin annuity terminates. new text end 63.28 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 63.29    Sec. 80. Minnesota Statutes 2009 Supplement, section 356.415, is amended by adding 63.30a subdivision to read: 63.31     new text begin Subd. 1e. new text end new text begin Annual postretirement adjustments; State Patrol retirement plan. new text end 63.32 new text begin (a) Retirement annuity, disability benefit, or survivor benefit recipients of the State Patrol new text end 63.33 new text begin retirement plan are entitled to a postretirement adjustment annually on January 1, as new text end 63.34 new text begin follows: new text end 64.1 new text begin (1) a postretirement increase of 1.5 percent must be applied each year, effective on new text end 64.2 new text begin January 1, to the monthly annuity or benefit of each annuitant or benefit recipient who new text end 64.3 new text begin has been receiving an annuity or a benefit for at least 18 full months before the January 1 new text end 64.4 new text begin increase; and new text end 64.5 new text begin (2) for each annuitant or benefit recipient who has been receiving an annuity or a new text end 64.6 new text begin benefit for at least six full months, an annual postretirement increase of 1/12 of 1.5 percent new text end 64.7 new text begin for each month that the person has been receiving an annuity or benefit must be applied, new text end 64.8 new text begin effective January 1, following the calendar year in which the person has been retired for at new text end 64.9 new text begin least six months, but has been retired for less than 18 months. new text end 64.10 new text begin (b) The increases provided by this subdivision commence on January 1, 2011. new text end 64.11 new text begin Increases under this subdivision for the State Patrol retirement plan terminate on December new text end 64.12 new text begin 31 of the calendar year in which the actuarial valuation prepared by the approved actuary new text end 64.13 new text begin under sections 356.214 and 356.215 and the standards for actuarial work promulgated by new text end 64.14 new text begin the Legislative Commission on Pensions and Retirement indicates that the market value of new text end 64.15 new text begin assets of the retirement plan equals or exceeds 90 percent of the actuarial accrued liability new text end 64.16 new text begin of the retirement plan and increases under subdivision 1 recommence after that date. new text end 64.17 new text begin (c) An increase in annuity or benefit payments under this subdivision must be made new text end 64.18 new text begin automatically unless written notice is filed by the annuitant or benefit recipient with the new text end 64.19 new text begin executive director of the applicable covered retirement plan requesting that the increase new text end 64.20 new text begin not be made. new text end 64.21 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 64.22    Sec. 81. Minnesota Statutes 2008, section 356.47, subdivision 3, is amended to read: 64.23    Subd. 3. Payment. (a) Beginning one year after the reemployment withholding 64.24period ends relating to the reemployment that gave rise to the limitation, and the filing of a 64.25written application, the retired member is entitled to the payment, in a lump sum, of the 64.26value of the person's amount under subdivision 2, plus new text begin annual compound new text end interest at new text begin . For new text end 64.27 new text begin the general state employees retirement plan, the correctional state employees retirement new text end 64.28 new text begin plan, the general employees retirement plan of the Public Employees Retirement new text end 64.29 new text begin Association, the public employees police and fire retirement plan, the local government new text end 64.30 new text begin correctional employees retirement plan, and the teachers retirement plan, the annual new text end 64.31 new text begin interest rate is six percent from the date on which the amount was deducted from the new text end 64.32 new text begin retirement annuity to the date of payment or until January 1, 2011, whichever is earlier, and new text end 64.33 new text begin no interest after January 1, 2011. For the Duluth Teachers Retirement Fund Association, new text end 64.34 new text begin the annual interest is six percent from the date on which the amount was deducted from the new text end 64.35 new text begin retirement annuity to the date of payment or until June 30, 2010, whichever is earlier, and new text end 65.1 new text begin no interest after June 30, 2010. For the St. Paul Teachers Retirement Fund Association, new text end 65.2 new text begin the annual interest is new text end the compound annual rate of six percent from the date that the 65.3amount was deducted from the retirement annuity to the date of payment. 65.4    (b) The written application must be on a form prescribed by the chief administrative 65.5officer of the applicable retirement plan. 65.6    (c) If the retired member dies before the payment provided for in paragraph (a) is 65.7made, the amount is payable, upon written application, to the deceased person's surviving 65.8spouse, or if none, to the deceased person's designated beneficiary, or if none, to the 65.9deceased person's estate. 65.10    (d) In lieu of the direct payment of the person's amount under subdivision 2, on 65.11or after the payment date under paragraph (a), if the federal Internal Revenue Code so 65.12permits, the retired member may elect to have all or any portion of the payment amount 65.13under this section paid in the form of a direct rollover to an eligible retirement plan as 65.14defined in section 402(c) of the federal Internal Revenue Code that is specified by the 65.15retired member. If the retired member dies with a balance remaining payable under this 65.16section, the surviving spouse of the retired member, or if none, the deceased person's 65.17designated beneficiary, or if none, the administrator of the deceased person's estate may 65.18elect a direct rollover under this paragraph. 65.19 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 65.20    Sec. 82. Minnesota Statutes 2009 Supplement, section 423A.02, subdivision 3, is 65.21amended to read: 65.22    Subd. 3. Reallocation of amortization or supplementary amortization state 65.23aid. (a) Seventy percent of the difference between $5,720,000 and the current year 65.24amortization aid and supplemental amortization aid distributed under subdivisions 1 65.25and 1a that is not distributed for any reason to a municipality for use by a local police 65.26or salaried fire relief association must be distributed by the commissioner of revenue 65.27according to this paragraph. The commissioner shall distribute 50 percent of the amounts 65.28derived under this paragraph to the Teachers Retirement Association, ten percent to the 65.29Duluth Teachers Retirement Fund Association, and 40 percent to the St. Paul Teachers 65.30Retirement Fund Association to fund the unfunded actuarial accrued liabilities of the 65.31respective funds. These payments shall be made on or before June 30 each fiscal year. If 65.32the St. Paul Teachers Retirement Fund Association becomes fully funded, its eligibility 65.33for this aid ceases. Amounts remaining in the undistributed balance account at the end of 65.34the biennium if aid eligibility ceases cancel to the general fund. 66.1    (b) In order to receive amortization and supplementary amortization aid under 66.2paragraph (a), Independent School District No. 625, St. Paul, must make contributions 66.3to the St. Paul Teachers Retirement Fund Association in accordance with the following 66.4schedule: 66.5 Fiscal Year Amount 66.6 1996 $ 0 66.7 1997 $ 0 66.8 1998 $ 200,000 66.9 1999 $ 400,000 66.10 2000 $ 600,000 66.11 2001 and thereafter $ 800,000 66.12    (c) Special School District No. 1, Minneapolis, and the city of Minneapolis must 66.13each make contributions to the Teachers Retirement Association in accordance with the 66.14following schedule: 66.15 66.16 Fiscal Year City amount School district amount 66.17 1996 $ 0 $ 0 66.18 1997 $ 0 $ 0 66.19 1998 $ 250,000 $ 250,000 66.20 1999 $ 400,000 $ 400,000 66.21 2000 $ 550,000 $ 550,000 66.22 2001 $ 700,000 $ 700,000 66.23 2002 $ 850,000 $ 850,000 66.24 2003 and thereafter $ 1,000,000 $ 1,000,000 66.25    (d) Money contributed under paragraph (a) and either paragraph (b) or (c), as 66.26applicable, must be credited to a separate account in the applicable teachers retirement 66.27fund and may not be used in determining any benefit increases. The separate account 66.28terminates for a fund when the aid payments to the fund under paragraph (a) cease. 66.29    (e) new text begin (d) new text end Thirty percent of the difference between $5,720,000 and the current year 66.30amortization aid and supplemental amortization aid under subdivisions 1 and 1a that is not 66.31distributed for any reason to a municipality for use by a local police or salaried firefighter 66.32relief association must be distributed under section 69.021, subdivision 7, paragraph (d), 66.33as additional funding to support a minimum fire state aid amount for volunteer firefighter 66.34relief associations. 66.35 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 66.36    Sec. 83. new text begin LOCAL RETIREMENT FUND INVESTMENT AUTHORITIES new text end 66.37 new text begin STUDY. new text end 67.1 new text begin A study group consisting of representatives from pension plans subject to Minnesota new text end 67.2 new text begin Statutes, section 356A.06, subdivision 6 or 7, shall be convened by the state auditor to new text end 67.3 new text begin study investment-related provisions, authorities, and limitations under Minnesota Statutes, new text end 67.4 new text begin chapter 356A, and related sections of other chapters. Administrative support for the new text end 67.5 new text begin study group shall be provided by the state auditor. The study group shall prepare a new text end 67.6 new text begin report to include an assessment of the effectiveness of current statutory prescriptions, new text end 67.7 new text begin options for change, and recommendations for consideration by the governor and the new text end 67.8 new text begin legislature during the 2011 legislative session. The report will be provided no later than new text end 67.9 new text begin January 15, 2011, to the executive director of the Legislative Commission on Pensions and new text end 67.10 new text begin Retirement, the chair and ranking minority caucus member of the senate State and Local new text end 67.11 new text begin Government Operations and Oversight Committee, and the chair and ranking minority new text end 67.12 new text begin caucus member of the house State and Local Government Operations Reform, Technology new text end 67.13 new text begin and Elections Committee. new text end 67.14 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 67.15    Sec. 84. new text begin BYLAW AUTHORIZATION. new text end 67.16 new text begin Consistent with the requirements of Minnesota Statutes, section 354A.12, new text end 67.17 new text begin subdivision 4, the board of the Duluth Teachers Retirement Fund Association is authorized new text end 67.18 new text begin to revise the bylaws or articles of incorporation so that the requirements of this act apply new text end 67.19 new text begin to the old law coordinated program. new text end 67.20 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 67.21    Sec. 85. new text begin REPEALER. new text end 67.22 new text begin Minnesota Statutes 2008, section 354A.27, subdivision 1, new text end new text begin is repealed. new text end 67.23 new text begin EFFECTIVE DATE. new text end new text begin This section is effective July 1, 2010. new text end