<a id="pl.1.3"></a><var>1.3</var>Retirement Association; Teachers Retirement Association; first class city <br/>
<a id="pl.1.4"></a><var>1.4</var>teacher retirement fund associations; increasing certain contribution rates; <br/>
<a id="pl.1.5"></a><var>1.5</var>authorizing certain postretirement adjustments; suspending certain postretirement <br/>
<a id="pl.1.6"></a><var>1.6</var>adjustments; reducing certain postretirement adjustment increase rates; <br/>
<a id="pl.1.7"></a><var>1.7</var>reducing interest rates on refunds; reducing deferred annuity augmentation <br/>
<a id="pl.1.8"></a><var>1.8</var>rates; eliminating interest on reemployed annuitant earnings limitation deferred <br/>
<a id="pl.1.9"></a><var>1.9</var>accounts; increasing certain vesting requirements; increasing certain early <br/>
<a id="pl.1.10"></a><var>1.10</var>retirement reduction rates; reducing certain benefit accrual rates; extending <br/>
<a id="pl.1.11"></a><var>1.11</var>certain amortization periods; requiring a retirement fund investment authority <br/>
<a id="pl.1.12"></a><var>1.12</var>study; authorizing certain bylaw amendments;amending Minnesota Statutes <br/>
<a id="pl.1.13"></a><var>1.13</var>2008, sections 3A.02, subdivision 4; 352.113, subdivision 1; 352.115, subdivision <br/>
<a id="pl.1.14"></a><var>1.14</var>1; 352.12, subdivision 2; 352.22, subdivisions 2, 3; 352.72, subdivisions 1, 2; <br/>
<a id="pl.1.15"></a><var>1.15</var>352.93, subdivisions 1, 2a, 3a; 352.931, subdivision 1; 352B.02, as amended; <br/>
<a id="pl.1.16"></a><var>1.16</var>352B.08, subdivisions 1, 2a; 352B.11, subdivision 2b; 352B.30, subdivisions 1, <br/>
<a id="pl.1.17"></a><var>1.17</var>2; 352F.07; 353.01, by adding a subdivision; 353.27, subdivision 3b; 353.29, <br/>
<a id="pl.1.18"></a><var>1.18</var>subdivision 1; 353.30, subdivision 1c; 353.32, subdivisions 1, 1a; 353.34, <br/>
<a id="pl.1.19"></a><var>1.19</var>subdivisions 1, 2, 3; 353.651, subdivisions 1, 4; 353.657, subdivisions 1, 2a; <br/>
<a id="pl.1.20"></a><var>1.20</var>353.71, subdivisions 1, 2; 353E.04, subdivisions 1, 4; 353E.07, subdivisions 1, 2; <br/>
<a id="pl.1.21"></a><var>1.21</var>353F.03; 354.42, subdivision 3, by adding subdivisions; 354A.12, subdivisions <br/>
<a id="pl.1.22"></a><var>1.22</var>1, 3c; 354A.27, subdivisions 5, 6, by adding a subdivision; 354A.31, subdivision <br/>
<a id="pl.1.23"></a><var>1.23</var>1; 354A.35, subdivision 1; 354A.37, subdivisions 2, 3, 4; 356.215, subdivision <br/>
<a id="pl.1.24"></a><var>1.24</var>8; 356.30, subdivision 1; 356.302, subdivisions 3, 4, 5; 356.303, subdivision <br/>
<a id="pl.1.25"></a><var>1.25</var>2; 356.315, subdivision 5; 356.47, subdivision 3; Minnesota Statutes 2009 <br/>
<a id="pl.1.26"></a><var>1.26</var>Supplement, sections 352.75, subdivision 4; 352.95, subdivision 2; 353.27, <br/>
<a id="pl.1.27"></a><var>1.27</var>subdivisions 2, 3; 353.33, subdivision 1; 353.65, subdivisions 2, 3; 354.42, <br/>
<a id="pl.1.28"></a><var>1.28</var>subdivision 2; 354.47, subdivision 1; 354.49, subdivision 2; 354.55, subdivision <br/>
<a id="pl.1.29"></a><var>1.29</var>11; 354A.12, subdivision 2a; 356.215, subdivision 11; 356.415, subdivision 1, <br/>
<a id="pl.1.30"></a><var>1.30</var>by adding subdivisions; 423A.02, subdivision 3; repealing Minnesota Statutes <br/>
<a id="pl.1.31"></a><var>1.31</var>2008, section 354A.27, subdivision 1.<br/>
<a id="pl.1.32"></a><var>1.32</var>BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:<br/>
<br/>
<a id="bill.0.1.0"></a><a id="pl.1.33"></a><var>1.33</var>    Section 1. Minnesota Statutes 2008, section 3A.02, subdivision 4, is amended to read:<br/>
<a id="pl.1.34"></a><var>1.34</var>    Subd. 4. <b>Deferred annuities augmentation.</b>  (a) The deferred retirement allowance <br/>
<a id="pl.1.35"></a><var>1.35</var>of any former legislator must be augmented as provided herein.<br/>
<a id="pl.2.1"></a><var>2.1</var>    (b) The required reserves applicable to the deferred retirement allowance, <br/>
<a id="pl.2.2"></a><var>2.2</var>determined as of the date the benefit begins to accrue using an appropriate mortality table <br/>
<a id="pl.2.3"></a><var>2.3</var>and an interest assumption of six percent, must be augmented from the first of the month <br/>
<a id="pl.2.4"></a><var>2.4</var>following the termination of active service, or July 1, 1973, whichever is later, to the first <br/>
<a id="pl.2.5"></a><var>2.5</var>day of the month in which the allowance begins to accrue, at the following annually <br/>
<a id="pl.2.6"></a><var>2.6</var>compounded rate or rates:<br/>
<a id="pl.2.7"></a><var>2.7</var>(1) five percent until January 1, 1981;<br/>
<a id="pl.2.8"></a><var>2.8</var>(2) three percent from January 1, 1981, or from the first day of the month following <br/>
<a id="pl.2.9"></a><var>2.9</var>the termination of active service, whichever is later, until January 1 of the year in which <br/>
<a id="pl.2.10"></a><var>2.10</var>the former legislator attains age 55 or until January 1, 2012, whichever is earlier; and<br/>
<a id="pl.2.11"></a><var>2.11</var>(3) five percent from the period end date under clause (2) to until the effective date <br/>
<a id="pl.2.12"></a><var>2.12</var>of retirement or until January 1, 2012, whichever is earlier; and<br/>
<a id="pl.2.13"></a><var>2.13</var>(4) two percent after December 31, 2011.<br/>
<a id="pl.2.14"></a><var>2.14</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.0.2.0"></a><a id="pl.2.15"></a><var>2.15</var>    Sec. 2. Minnesota Statutes 2008, section 352.113, subdivision 1, is amended to read:<br/>
<a id="pl.2.16"></a><var>2.16</var>    Subdivision 1. <b>Age and service requirements.</b> (a) An employee covered by the <br/>
<a id="pl.2.17"></a><var>2.17</var>system, who is less than normal retirement age and who becomes totally and permanently <br/>
<a id="pl.2.18"></a><var>2.18</var>disabled after three or more years of allowable service if employed before July 1, 2010, or <br/>
<a id="pl.2.19"></a><var>2.19</var>after five or more years of allowable service if employed after June 30, 2010, is entitled to <br/>
<a id="pl.2.20"></a><var>2.20</var>a disability benefit in an amount provided in subdivision 3.<br/>
<a id="pl.2.21"></a><var>2.21</var>(b) If the disabled employee's state service has terminated at any time, the employee <br/>
<a id="pl.2.22"></a><var>2.22</var>must have at least two years of allowable service after last becoming a state employee <br/>
<a id="pl.2.23"></a><var>2.23</var>covered by the system.<br/>
<a id="pl.2.24"></a><var>2.24</var>(c) Refunds may be repaid under section 
         <statute_ref>352.23</statute_ref> before the effective accrual date of <br/>
<a id="pl.2.25"></a><var>2.25</var>the disability benefit under subdivision 2. <br/>
<a id="pl.2.26"></a><var>2.26</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.0.3.0"></a><a id="pl.2.27"></a><var>2.27</var>    Sec. 3. Minnesota Statutes 2008, section 352.115, subdivision 1, is amended to read:<br/>
<a id="pl.2.28"></a><var>2.28</var>    Subdivision 1. <b>Age and service requirements.</b> After separation from state service, <br/>
<a id="pl.2.29"></a><var>2.29</var>any employee (1) who has attained the age of at least 55 years and who is entitled to <br/>
<a id="pl.2.30"></a><var>2.30</var>credit for at least three years allowable service if employed before July 1, 2010, or after <br/>
<a id="pl.2.31"></a><var>2.31</var>five or more years of allowable service if employed after June 30, 2010, or (2) who has <br/>
<a id="pl.2.32"></a><var>2.32</var>received credit for at least 30 years allowable service regardless of age, is entitled upon <br/>
<a id="pl.2.33"></a><var>2.33</var>application to a retirement annuity.<br/>
<a id="pl.3.1"></a><var>3.1</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.0.4.0"></a><a id="pl.3.2"></a><var>3.2</var>    Sec. 4. Minnesota Statutes 2008, section 352.12, subdivision 2, is amended to read:<br/>
<a id="pl.3.3"></a><var>3.3</var>    Subd. 2. <b>Surviving spouse benefit.</b> (a) If an employee or former employee has <br/>
<a id="pl.3.4"></a><var>3.4</var>credit for at least three years allowable service if the employee was employed before July <br/>
<a id="pl.3.5"></a><var>3.5</var>1, 2010, or for at least five years of allowable service if the employee was employed <br/>
<a id="pl.3.6"></a><var>3.6</var>after June 30, 2010, and dies before an annuity or disability benefit has become payable, <br/>
<a id="pl.3.7"></a><var>3.7</var>notwithstanding any designation of beneficiary to the contrary, the surviving spouse of the <br/>
<a id="pl.3.8"></a><var>3.8</var>employee may elect to receive, in lieu of the refund with interest under subdivision 1, an <br/>
<a id="pl.3.9"></a><var>3.9</var>annuity equal to the joint and 100 percent survivor annuity which the employee or former <br/>
<a id="pl.3.10"></a><var>3.10</var>employee could have qualified for on the date of death.<br/>
<a id="pl.3.11"></a><var>3.11</var>    (b) If the employee was under age 55 and has credit for at least 30 years of allowable <br/>
<a id="pl.3.12"></a><var>3.12</var>service on the date of death, the surviving spouse may elect to receive a 100 percent joint <br/>
<a id="pl.3.13"></a><var>3.13</var>and survivor annuity based on the age of the employee and surviving spouse on the date <br/>
<a id="pl.3.14"></a><var>3.14</var>of death. The annuity is payable using the full early retirement reduction under section <br/>
<statute_ref><a id="pl.3.15"></a><var>3.15</var>352.116, subdivision 1
         </statute_ref>, paragraph (a), to age 55 and one-half of the early retirement <br/>
<a id="pl.3.16"></a><var>3.16</var>reduction from age 55 to the age payment begins. <br/>
<a id="pl.3.17"></a><var>3.17</var>    (c) If the employee was under age 55 and has credit for at least three years of <br/>
<a id="pl.3.18"></a><var>3.18</var>allowable service credit on the date of death if the employee was employed before July 1, <br/>
<a id="pl.3.19"></a><var>3.19</var>2010, or for at least five years of allowable service if the employee was employed after <br/>
<a id="pl.3.20"></a><var>3.20</var>June 30, 2010, but did not yet qualify for retirement, the surviving spouse may elect <br/>
<a id="pl.3.21"></a><var>3.21</var>to receive a 100 percent joint and survivor annuity based on the age of the employee <br/>
<a id="pl.3.22"></a><var>3.22</var>and surviving spouse at the time of death. The annuity is payable using the full early <br/>
<a id="pl.3.23"></a><var>3.23</var>retirement reduction under section 
         <statute_ref>352.116, subdivision 1</statute_ref> or 1a, to age 55 and one-half of <br/>
<a id="pl.3.24"></a><var>3.24</var>the early retirement reduction from age 55 to the age payment begins. <br/>
<a id="pl.3.25"></a><var>3.25</var>    (d) The surviving spouse eligible for benefits under paragraph (a) may apply for the <br/>
<a id="pl.3.26"></a><var>3.26</var>annuity at any time after the date on which the employee or former employee would <br/>
<a id="pl.3.27"></a><var>3.27</var>have attained the required age for retirement based on the allowable service earned. <br/>
<a id="pl.3.28"></a><var>3.28</var>The surviving spouse eligible for surviving spouse benefits under paragraph (b) or (c) <br/>
<a id="pl.3.29"></a><var>3.29</var>may apply for the annuity at any time after the employee's death. The annuity must be <br/>
<a id="pl.3.30"></a><var>3.30</var>computed under sections 
         <statute_ref>352.115, subdivisions 1, 2, and 3</statute_ref>, and 
         <statute_ref>352.116, subdivisions 1, <br/>
<a id="pl.3.31"></a><var>3.31</var>1a, and 3
         </statute_ref>. Sections 
         <statute_ref>352.22, subdivision 3</statute_ref>, and 
         <statute_ref>352.72, subdivision 2</statute_ref>, apply to a deferred <br/>
<a id="pl.3.32"></a><var>3.32</var>annuity or surviving spouse benefit payable under this subdivision. The annuity must cease <br/>
<a id="pl.3.33"></a><var>3.33</var>with the last payment received by the surviving spouse in the lifetime of the surviving <br/>
<a id="pl.3.34"></a><var>3.34</var>spouse, or upon expiration of a term certain benefit payment to a surviving spouse under <br/>
<a id="pl.3.35"></a><var>3.35</var>subdivision 2a. An amount equal to the excess, if any, of the accumulated contributions <br/>
<a id="pl.4.1"></a><var>4.1</var>credited to the account of the deceased employee in excess of the total of the benefits paid <br/>
<a id="pl.4.2"></a><var>4.2</var>and payable to the surviving spouse must be paid to the deceased employee's or former <br/>
<a id="pl.4.3"></a><var>4.3</var>employee's last designated beneficiary or, if none, as specified under subdivision 1. <br/>
<a id="pl.4.4"></a><var>4.4</var>    (e) Any employee or former employee may request in writing, with the signed <br/>
<a id="pl.4.5"></a><var>4.5</var>consent of the spouse, that this subdivision not apply and that payment be made only to a <br/>
<a id="pl.4.6"></a><var>4.6</var>designated beneficiary as otherwise provided by this chapter.<br/>
<a id="pl.4.7"></a><var>4.7</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.0.5.0"></a><a id="pl.4.8"></a><var>4.8</var>    Sec. 5. Minnesota Statutes 2008, section 352.22, subdivision 2, is amended to read:<br/>
<a id="pl.4.9"></a><var>4.9</var>    Subd. 2. <b>Amount of refund.</b> Except as provided in subdivision 3, the refund <br/>
<a id="pl.4.10"></a><var>4.10</var>payable to a person who ceased to be a state employee by reason of a termination of state <br/>
<a id="pl.4.11"></a><var>4.11</var>service is an amount equal to employee accumulated contributions plus interest at the rate <br/>
<a id="pl.4.12"></a><var>4.12</var>of six percent per year compounded daily from the date that the contribution was made <br/>
<a id="pl.4.13"></a><var>4.13</var>until June 30, 2011, or until the date on which the refund is paid, whichever is earlier, and <br/>
<a id="pl.4.14"></a><var>4.14</var>at the rate of four percent per year compounded daily from the date that the contribution <br/>
<a id="pl.4.15"></a><var>4.15</var>was made or from July 1, 2011, whichever is later, until the date on which the refund is <br/>
<a id="pl.4.16"></a><var>4.16</var>paid. Included with the refund is any interest paid as part of repayment of a past refund, <br/>
<a id="pl.4.17"></a><var>4.17</var>plus interest thereon from the date of repayment.<br/>
<a id="pl.4.18"></a><var>4.18</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.0.6.0"></a><a id="pl.4.19"></a><var>4.19</var>    Sec. 6. Minnesota Statutes 2008, section 352.22, subdivision 3, is amended to read:<br/>
<a id="pl.4.20"></a><var>4.20</var>    Subd. 3. <b>Deferred annuity.</b> (a) An employee who has at least three years of <br/>
<a id="pl.4.21"></a><var>4.21</var>allowable service if employed before July 1, 2010, or who has at least five years of <br/>
<a id="pl.4.22"></a><var>4.22</var>allowable service if employed after June 30, 2010, when termination occurs may elect <br/>
<a id="pl.4.23"></a><var>4.23</var>to leave the accumulated contributions in the fund and thereby be entitled to a deferred <br/>
<a id="pl.4.24"></a><var>4.24</var>retirement annuity. The annuity must be computed under the law in effect when state <br/>
<a id="pl.4.25"></a><var>4.25</var>service terminated, on the basis of the allowable service credited to the person before <br/>
<a id="pl.4.26"></a><var>4.26</var>the termination of service.<br/>
<a id="pl.4.27"></a><var>4.27</var>(b) An employee on layoff or on leave of absence without pay, except a leave of <br/>
<a id="pl.4.28"></a><var>4.28</var>absence for health reasons, and who does not return to state service must have an annuity, <br/>
<a id="pl.4.29"></a><var>4.29</var>deferred annuity, or other benefit to which the employee may become entitled computed <br/>
<a id="pl.4.30"></a><var>4.30</var>under the law in effect on the employee's last working day.<br/>
<a id="pl.4.31"></a><var>4.31</var>(c) No application for a deferred annuity may be made more than 60 days before <br/>
<a id="pl.4.32"></a><var>4.32</var>the time the former employee reaches the required age for entitlement to the payment of <br/>
<a id="pl.4.33"></a><var>4.33</var>the annuity. The deferred annuity begins to accrue no earlier than 60 days before the date <br/>
<a id="pl.5.1"></a><var>5.1</var>the application is filed in the office of the system, but not (1) before the date on which <br/>
<a id="pl.5.2"></a><var>5.2</var>the employee reaches the required age for entitlement to the annuity nor (2) before the <br/>
<a id="pl.5.3"></a><var>5.3</var>day following the termination of state service in a position which is not covered by the <br/>
<a id="pl.5.4"></a><var>5.4</var>retirement system.<br/>
<a id="pl.5.5"></a><var>5.5</var>(d) Application for the accumulated contributions left on deposit with the fund may <br/>
<a id="pl.5.6"></a><var>5.6</var>be made at any time following the date of the termination of service.<br/>
<a id="pl.5.7"></a><var>5.7</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.0.7.0"></a><a id="pl.5.8"></a><var>5.8</var>    Sec. 7. Minnesota Statutes 2008, section 352.72, subdivision 1, is amended to read:<br/>
<a id="pl.5.9"></a><var>5.9</var>    Subdivision 1. <b>Entitlement to annuity.</b> (a) Any person who has been an employee <br/>
<a id="pl.5.10"></a><var>5.10</var>covered by a retirement system listed in paragraph (b) is entitled when qualified to an <br/>
<a id="pl.5.11"></a><var>5.11</var>annuity from each fund if total allowable service in all funds or in any two of these funds <br/>
<a id="pl.5.12"></a><var>5.12</var>totals three or more years if employed before July 1, 2010, or totals five or more years <br/>
<a id="pl.5.13"></a><var>5.13</var>if employed after June 30, 2010.<br/>
<a id="pl.5.14"></a><var>5.14</var>(b) This section applies to the Minnesota State Retirement System, the Public <br/>
<a id="pl.5.15"></a><var>5.15</var>Employees Retirement Association including the Public Employees Retirement <br/>
<a id="pl.5.16"></a><var>5.16</var>Association police and fire fund, the Teachers Retirement Association, the State Patrol <br/>
<a id="pl.5.17"></a><var>5.17</var>Retirement Association, or any other public employee retirement system in the state with <br/>
<a id="pl.5.18"></a><var>5.18</var>a similar provision, except as noted in paragraph (c).<br/>
<a id="pl.5.19"></a><var>5.19</var>(c) This section does not apply to other funds providing benefits for police officers <br/>
<a id="pl.5.20"></a><var>5.20</var>or firefighters.<br/>
<a id="pl.5.21"></a><var>5.21</var>(d) No portion of the allowable service upon which the retirement annuity from <br/>
<a id="pl.5.22"></a><var>5.22</var>one fund is based shall be again used in the computation for benefits from another fund. <br/>
<a id="pl.5.23"></a><var>5.23</var>No refund may have been taken from any one of these funds since service entitling the <br/>
<a id="pl.5.24"></a><var>5.24</var>employee to coverage under the system or the employee's membership in any of the <br/>
<a id="pl.5.25"></a><var>5.25</var>associations last terminated. The annuity from each fund must be determined by the <br/>
<a id="pl.5.26"></a><var>5.26</var>appropriate provisions of the law except that the requirement that a person must have at <br/>
<a id="pl.5.27"></a><var>5.27</var>least three a specific number of years of allowable service in the respective system or <br/>
<a id="pl.5.28"></a><var>5.28</var>association does not apply for the purposes of this section if the combined service in two <br/>
<a id="pl.5.29"></a><var>5.29</var>or more of these funds equals three or more years at least the longest period of allowable <br/>
<a id="pl.5.30"></a><var>5.30</var>service of any of the applicable retirement plans.<br/>
<a id="pl.5.31"></a><var>5.31</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.0.8.0"></a><a id="pl.5.32"></a><var>5.32</var>    Sec. 8. Minnesota Statutes 2008, section 352.72, subdivision 2, is amended to read:<br/>
<a id="pl.6.1"></a><var>6.1</var>    Subd. 2. <b>Computation of deferred annuity.</b> (a) The deferred annuity, if any, <br/>
<a id="pl.6.2"></a><var>6.2</var>accruing under subdivision 1, or section 
         <statute_ref>352.22, subdivision 3</statute_ref>, must be computed as <br/>
<a id="pl.6.3"></a><var>6.3</var>provided in section 
         <statute_ref>352.22, subdivision 3</statute_ref>, on the basis of allowable service before <br/>
<a id="pl.6.4"></a><var>6.4</var>termination of state service and augmented as provided herein. The required reserves <br/>
<a id="pl.6.5"></a><var>6.5</var>applicable to a deferred annuity or to an annuity for which a former employee was eligible <br/>
<a id="pl.6.6"></a><var>6.6</var>but had not applied or to any deferred segment of an annuity must be determined as of <br/>
<a id="pl.6.7"></a><var>6.7</var>the date the benefit begins to accrue and augmented by interest compounded annually <br/>
<a id="pl.6.8"></a><var>6.8</var>from the first day of the month following the month in which the employee ceased to be <br/>
<a id="pl.6.9"></a><var>6.9</var>a state employee, or July 1, 1971, whichever is later, to the first day of the month in <br/>
<a id="pl.6.10"></a><var>6.10</var>which the annuity begins to accrue. The rates of interest used for this purpose must be <br/>
<a id="pl.6.11"></a><var>6.11</var>five percent compounded annually until January 1, 1981, and three percent compounded <br/>
<a id="pl.6.12"></a><var>6.12</var>annually thereafter until January 1 of the year following the year in which the former <br/>
<a id="pl.6.13"></a><var>6.13</var>employee attains age 55 or until January 1, 2012, whichever is earlier, and from that date <br/>
<a id="pl.6.14"></a><var>6.14</var>the January 1 next following the attainment of age 55 to the effective date of retirement or <br/>
<a id="pl.6.15"></a><var>6.15</var>until January 1, 2012, whichever is earlier, the rate is five percent compounded annually if <br/>
<a id="pl.6.16"></a><var>6.16</var>the employee became an employee before July 1, 2006, and at 2.5 percent compounded <br/>
<a id="pl.6.17"></a><var>6.17</var>annually until January 1, 2012, if the employee becomes an employee after June 30, 2006, <br/>
<a id="pl.6.18"></a><var>6.18</var>and two percent compounded annually after December 31, 2011, irrespective of when the <br/>
<a id="pl.6.19"></a><var>6.19</var>employee became a state employee. If a person has more than one period of uninterrupted <br/>
<a id="pl.6.20"></a><var>6.20</var>service, the required reserves related to each period must be augmented by interest under <br/>
<a id="pl.6.21"></a><var>6.21</var>this subdivision. The sum of the augmented required reserves so determined is the present <br/>
<a id="pl.6.22"></a><var>6.22</var>value of the annuity. "Uninterrupted service" for the purpose of this subdivision means <br/>
<a id="pl.6.23"></a><var>6.23</var>periods of covered employment during which the employee has not been separated from <br/>
<a id="pl.6.24"></a><var>6.24</var>state service for more than two years. If a person repays a refund, the service restored by <br/>
<a id="pl.6.25"></a><var>6.25</var>the repayment must be considered continuous with the next period of service for which the <br/>
<a id="pl.6.26"></a><var>6.26</var>employee has credit with this system. The formula percentages used for each period of <br/>
<a id="pl.6.27"></a><var>6.27</var>uninterrupted service must be those applicable to a new employee. The mortality table <br/>
<a id="pl.6.28"></a><var>6.28</var>and interest assumption used to compute the annuity must be those in effect when the <br/>
<a id="pl.6.29"></a><var>6.29</var>employee files application for annuity. This section does not reduce the annuity otherwise <br/>
<a id="pl.6.30"></a><var>6.30</var>payable under this chapter. <br/>
<a id="pl.6.31"></a><var>6.31</var>(b) The retirement annuity or disability benefit of, or the survivor benefit payable on <br/>
<a id="pl.6.32"></a><var>6.32</var>behalf of, a former state employee who terminated service before July 1, 1997, which is <br/>
<a id="pl.6.33"></a><var>6.33</var>not first payable until after June 30, 1997, must be increased on an actuarial equivalent <br/>
<a id="pl.6.34"></a><var>6.34</var>basis to reflect the change in the postretirement interest rate actuarial assumption under <br/>
<a id="pl.6.35"></a><var>6.35</var>section 
         <statute_ref>356.215, subdivision 8</statute_ref>, from five percent to six percent under a calculation <br/>
<a id="pl.7.1"></a><var>7.1</var>procedure and the tables adopted by the board and approved by the actuary retained under <br/>
<a id="pl.7.2"></a><var>7.2</var>section 
         <statute_ref>356.214</statute_ref>. <br/>
<a id="pl.7.3"></a><var>7.3</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.0.9.0"></a><a id="pl.7.4"></a><var>7.4</var>    Sec. 9. Minnesota Statutes 2009 Supplement, section 352.75, subdivision 4, is <br/>
<a id="pl.7.5"></a><var>7.5</var>amended to read:<br/>
<a id="pl.7.6"></a><var>7.6</var>    Subd. 4. <b>Existing deferred retirees.</b> Any former member of the former <br/>
<a id="pl.7.7"></a><var>7.7</var>Metropolitan Transit Commission-Transit Operating Division employees retirement <br/>
<a id="pl.7.8"></a><var>7.8</var>fund is entitled to a retirement annuity from the Minnesota State Retirement System if <br/>
<a id="pl.7.9"></a><var>7.9</var>the employee:<br/>
<a id="pl.7.10"></a><var>7.10</var>(1) is not an active employee of the Transit Operating Division of the former <br/>
<a id="pl.7.11"></a><var>7.11</var>Metropolitan Transit Commission on July 1, 1978; (2) has at least ten years of active <br/>
<a id="pl.7.12"></a><var>7.12</var>continuous service with the Transit Operating Division of the former Metropolitan <br/>
<a id="pl.7.13"></a><var>7.13</var>Transit Commission as defined by the former Metropolitan Transit Commission-Transit <br/>
<a id="pl.7.14"></a><var>7.14</var>Operating Division employees retirement plan document in effect on December 31, 1977; <br/>
<a id="pl.7.15"></a><var>7.15</var>(3) has not received a refund of contributions; (4) has not retired or begun receiving an <br/>
<a id="pl.7.16"></a><var>7.16</var>annuity or benefit from the former Metropolitan Transit Commission-Transit Operating <br/>
<a id="pl.7.17"></a><var>7.17</var>Division employees retirement fund; (5) is at least 55 years old; and (6) submits a valid <br/>
<a id="pl.7.18"></a><var>7.18</var>application for a retirement annuity to the executive director of the Minnesota State <br/>
<a id="pl.7.19"></a><var>7.19</var>Retirement System.<br/>
<a id="pl.7.20"></a><var>7.20</var>The person is entitled to a retirement annuity in an amount equal to the normal <br/>
<a id="pl.7.21"></a><var>7.21</var>old age retirement allowance calculated under the former Metropolitan Transit <br/>
<a id="pl.7.22"></a><var>7.22</var>Commission-Transit Operating Division employees retirement fund plan document in <br/>
<a id="pl.7.23"></a><var>7.23</var>effect on December 31, 1977, subject to an early retirement reduction or adjustment in <br/>
<a id="pl.7.24"></a><var>7.24</var>amount on account of retirement before the normal retirement age specified in that former <br/>
<a id="pl.7.25"></a><var>7.25</var>Metropolitan Transit Commission-Transit Operating Division employees retirement fund <br/>
<a id="pl.7.26"></a><var>7.26</var>plan document.<br/>
<a id="pl.7.27"></a><var>7.27</var>The deferred retirement annuity of any person to whom this subdivision applies <br/>
<a id="pl.7.28"></a><var>7.28</var>must be augmented. The required reserves applicable to the deferred retirement annuity, <br/>
<a id="pl.7.29"></a><var>7.29</var>determined as of the date the allowance begins to accrue using an appropriate mortality <br/>
<a id="pl.7.30"></a><var>7.30</var>table and an interest assumption of five percent, must be augmented by interest at the <br/>
<a id="pl.7.31"></a><var>7.31</var>rate of five percent per year compounded annually from January 1, 1978, to January 1, <br/>
<a id="pl.7.32"></a><var>7.32</var>1981, and three percent per year compounded annually from January 1, 1981, until the <br/>
<a id="pl.7.33"></a><var>7.33</var>date that the annuity begins to accrue or June 30, 2011, whichever is earlier, and two <br/>
<a id="pl.7.34"></a><var>7.34</var>percent after June 30, 2011, to the first day of the month in which the annuity begins to <br/>
<a id="pl.7.35"></a><var>7.35</var>accrue. After the commencement of the retirement annuity, the annuity is eligible for <br/>
<a id="pl.8.1"></a><var>8.1</var>postretirement adjustments under section 
         <statute_ref>356.415</statute_ref>. On applying for a retirement annuity <br/>
<a id="pl.8.2"></a><var>8.2</var>under this subdivision, the person is entitled to elect a joint and survivor optional annuity <br/>
<a id="pl.8.3"></a><var>8.3</var>under section 
         <statute_ref>352.116, subdivision 3</statute_ref>. <br/>
<a id="pl.8.4"></a><var>8.4</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.0.10.0"></a><a id="pl.8.5"></a><var>8.5</var>    Sec. 10. Minnesota Statutes 2008, section 352.93, subdivision 1, is amended to read:<br/>
<a id="pl.8.6"></a><var>8.6</var>    Subdivision 1. <b>Basis of annuity; when to apply.</b> After separation from state <br/>
<a id="pl.8.7"></a><var>8.7</var>service, an employee covered under section 
         <statute_ref>352.91</statute_ref> who has reached age 55 years and has <br/>
<a id="pl.8.8"></a><var>8.8</var>credit for at least three years of covered correctional service or a combination of covered <br/>
<a id="pl.8.9"></a><var>8.9</var>correctional service and general state employees state retirement plan allowable service <br/>
<a id="pl.8.10"></a><var>8.10</var>if first employed as a state employee before July 1, 2010, or has credit for at least ten <br/>
<a id="pl.8.11"></a><var>8.11</var>years of covered correctional service or a combination of covered correctional service <br/>
<a id="pl.8.12"></a><var>8.12</var>and general state employees retirement plan allowable service if first employed as a state <br/>
<a id="pl.8.13"></a><var>8.13</var>employee after June 30, 2010, is entitled upon application to a retirement annuity under <br/>
<a id="pl.8.14"></a><var>8.14</var>this section, based only on covered correctional employees' service. Application may be <br/>
<a id="pl.8.15"></a><var>8.15</var>made no earlier than 60 days before the date the employee is eligible to retire by reason of <br/>
<a id="pl.8.16"></a><var>8.16</var>both age and service requirements.<br/>
<a id="pl.8.17"></a><var>8.17</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.0.11.0"></a><a id="pl.8.18"></a><var>8.18</var>    Sec. 11. Minnesota Statutes 2008, section 352.93, subdivision 2a, is amended to read:<br/>
<a id="pl.8.19"></a><var>8.19</var>    Subd. 2a. <b>Early retirement.</b> Any covered correctional employee who becomes at <br/>
<a id="pl.8.20"></a><var>8.20</var>least 50 years old and who has at least three years of allowable service if first employed <br/>
<a id="pl.8.21"></a><var>8.21</var>as a correctional state employee before July 1, 2010, or has credit for at least ten years <br/>
<a id="pl.8.22"></a><var>8.22</var>of allowable service if first employed as a correctional state employee after June 30, <br/>
<a id="pl.8.23"></a><var>8.23</var>2010, is entitled upon application to a reduced retirement annuity equal to the annuity <br/>
<a id="pl.8.24"></a><var>8.24</var>calculated under subdivision 2, reduced by two-tenths of one percent for each month that <br/>
<a id="pl.8.25"></a><var>8.25</var>the correctional employee is under age 55 at the time of retirement if first employed as <br/>
<a id="pl.8.26"></a><var>8.26</var>a correctional state employee before July 1, 2010, and if retired before July 1, 2015, or <br/>
<a id="pl.8.27"></a><var>8.27</var>reduced by 0.417 percent for each month that the correctional employee is under age 55 <br/>
<a id="pl.8.28"></a><var>8.28</var>at the time of retirement if first employed as a correctional state employee after June 30, <br/>
<a id="pl.8.29"></a><var>8.29</var>2010, or if first employed as a correctional state employee before July 1, 2010, and if <br/>
<a id="pl.8.30"></a><var>8.30</var>retired after June 30, 2015.<br/>
<a id="pl.8.31"></a><var>8.31</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.0.12.0"></a><a id="pl.8.32"></a><var>8.32</var>    Sec. 12. Minnesota Statutes 2008, section 352.93, subdivision 3a, is amended to read:<br/>
<a id="pl.9.1"></a><var>9.1</var>    Subd. 3a. <b>Optional annuities.</b> The board may establish optional annuity forms to <br/>
<a id="pl.9.2"></a><var>9.2</var>pay a higher amount from the date of retirement until an employee is first eligible to draw <br/>
<a id="pl.9.3"></a><var>9.3</var>Social Security benefits, reaches age 65, or up to reaches the age the employee is eligible <br/>
<a id="pl.9.4"></a><var>9.4</var>to receive unreduced Social Security benefits, at which time the monthly benefits must be <br/>
<a id="pl.9.5"></a><var>9.5</var>reduced. The optional annuity forms must be actuarially equivalent to the normal single <br/>
<a id="pl.9.6"></a><var>9.6</var>life annuity form provided in subdivision 2. The optional annuity forms must be approved <br/>
<a id="pl.9.7"></a><var>9.7</var>certified as actuarially equivalent by the actuary retained under section 
         <statute_ref>356.214</statute_ref>.<br/>
<a id="pl.9.8"></a><var>9.8</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.0.13.0"></a><a id="pl.9.9"></a><var>9.9</var>    Sec. 13. Minnesota Statutes 2008, section 352.931, subdivision 1, is amended to read:<br/>
<a id="pl.9.10"></a><var>9.10</var>    Subdivision 1. <b>Surviving spouse benefit.</b> (a) If the correctional employee was at <br/>
<a id="pl.9.11"></a><var>9.11</var>least age 50, has credit for at least three years of allowable service if first employed as <br/>
<a id="pl.9.12"></a><var>9.12</var>a correctional state employee before July 1, 2010, or has credit for at least ten years of <br/>
<a id="pl.9.13"></a><var>9.13</var>allowable service if first employed as a correctional state employee after June 30, 2010, <br/>
<a id="pl.9.14"></a><var>9.14</var>and dies before an annuity or disability benefit has become payable, notwithstanding any <br/>
<a id="pl.9.15"></a><var>9.15</var>designation of beneficiary to the contrary, the surviving spouse of the employee may <br/>
<a id="pl.9.16"></a><var>9.16</var>elect to receive, in lieu of the refund under section 
         <statute_ref>352.12, subdivision 1</statute_ref>, an annuity for <br/>
<a id="pl.9.17"></a><var>9.17</var>life equal to the joint and 100 percent survivor annuity which the employee could have <br/>
<a id="pl.9.18"></a><var>9.18</var>qualified for had the employee terminated service on the date of death. The election <br/>
<a id="pl.9.19"></a><var>9.19</var>may be made at any time after the date of death of the employee. The surviving spouse <br/>
<a id="pl.9.20"></a><var>9.20</var>benefit begins to accrue as of the first of the month next following the date on which <br/>
<a id="pl.9.21"></a><var>9.21</var>the application for the benefit was filed. <br/>
<a id="pl.9.22"></a><var>9.22</var>    (b) If the employee was under age 50, dies, and had credit for at least three years <br/>
<a id="pl.9.23"></a><var>9.23</var>of allowable service credit on the date of death if first employed as a correctional state <br/>
<a id="pl.9.24"></a><var>9.24</var>employee before July 1, 2010, or had credit for at least ten years of allowable service on <br/>
<a id="pl.9.25"></a><var>9.25</var>the date of death if first employed as a correctional state employee after June 30, 2010, but <br/>
<a id="pl.9.26"></a><var>9.26</var>did not yet qualify for retirement, the surviving spouse may elect to receive a 100 percent <br/>
<a id="pl.9.27"></a><var>9.27</var>joint and survivor annuity based on the age of the employee and surviving spouse at the <br/>
<a id="pl.9.28"></a><var>9.28</var>time of death. The annuity is payable using the early retirement reduction under section <br/>
<statute_ref><a id="pl.9.29"></a><var>9.29</var>352.93, subdivision 2a
         </statute_ref>, to age 50, and one-half of the early retirement reduction from age <br/>
<a id="pl.9.30"></a><var>9.30</var>50 to the age payment begins. The surviving spouse eligible for surviving spouse benefits <br/>
<a id="pl.9.31"></a><var>9.31</var>under this paragraph may apply for the annuity at any time after the employee's death. <br/>
<a id="pl.9.32"></a><var>9.32</var>Sections 
         <statute_ref>352.22, subdivision 3</statute_ref>, and 
         <statute_ref>352.72, subdivision 2</statute_ref>, apply to a deferred annuity or <br/>
<a id="pl.9.33"></a><var>9.33</var>surviving spouse benefit payable under this subdivision. <br/>
<a id="pl.9.34"></a><var>9.34</var>    (c) The annuity must cease with the last payment received by the surviving spouse <br/>
<a id="pl.9.35"></a><var>9.35</var>in the lifetime of the surviving spouse. Any employee may request in writing, with the <br/>
<a id="pl.10.1"></a><var>10.1</var>signed consent of the spouse, that this subdivision not apply and that payment be made <br/>
<a id="pl.10.2"></a><var>10.2</var>only to a designated beneficiary as otherwise provided by this chapter.<br/>
<a id="pl.10.3"></a><var>10.3</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.0.14.0"></a><a id="pl.10.4"></a><var>10.4</var>    Sec. 14. Minnesota Statutes 2009 Supplement, section 352.95, subdivision 2, is <br/>
<a id="pl.10.5"></a><var>10.5</var>amended to read:<br/>
<a id="pl.10.6"></a><var>10.6</var>    Subd. 2. <b>Regular disability; computation of benefit.</b> A covered correctional <br/>
<a id="pl.10.7"></a><var>10.7</var>employee who was hired before July 1, 2009, after rendering at least one year of covered <br/>
<a id="pl.10.8"></a><var>10.8</var>correctional service, or a covered correctional employee who was first hired after June <br/>
<a id="pl.10.9"></a><var>10.9</var>30, 2009, after rendering at least three years of covered correctional plan service if first <br/>
<a id="pl.10.10"></a><var>10.10</var>employed as a correctional state employee before July 1, 2010, or after rendering at least <br/>
<a id="pl.10.11"></a><var>10.11</var>ten years of covered correctional plan service if first employed as a correctional state <br/>
<a id="pl.10.12"></a><var>10.12</var>employee after June 30, 2010, and who is determined to have a regular disability, physical <br/>
<a id="pl.10.13"></a><var>10.13</var>or psychological, as defined under section 
         <statute_ref>352.01, subdivision 17c</statute_ref>, is entitled to a regular <br/>
<a id="pl.10.14"></a><var>10.14</var>disability benefit. The regular disability benefit must be based on covered correctional <br/>
<a id="pl.10.15"></a><var>10.15</var>service only. The regular disability benefit must be computed as provided in section <br/>
<statute_ref><a id="pl.10.16"></a><var>10.16</var>352.93, subdivisions 1 and 2
         </statute_ref>. The regular disability benefit of a covered correctional <br/>
<a id="pl.10.17"></a><var>10.17</var>employee who was first hired before July 1, 2009, and who is determined to have a regular <br/>
<a id="pl.10.18"></a><var>10.18</var>disability, physical or psychological, under this subdivision must be computed as though <br/>
<a id="pl.10.19"></a><var>10.19</var>the employee had at least 15 years of covered correctional service.<br/>
<a id="pl.10.20"></a><var>10.20</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.0.15.0"></a><a id="pl.10.21"></a><var>10.21</var>    Sec. 15. Minnesota Statutes 2008, section 352B.02, as amended by Laws 2009, chapter <br/>
<a id="pl.10.22"></a><var>10.22</var>101, article 2, section 109; and Laws 2009, chapter 169, article 1, section 23; article 2, <br/>
<a id="pl.10.23"></a><var>10.23</var>section 16; and article 4, sections 3 and 4, is amended to read:<br/>
<a id="pl.10.24"></a><var>10.24</var><b>352B.02 STATE PATROL RETIREMENT FUND.</b><br/>
<a id="pl.10.25"></a><var>10.25</var>    Subdivision 1. <b>Fund created; membership.</b> A State Patrol retirement fund <br/>
<a id="pl.10.26"></a><var>10.26</var>is established. Its membership consists of all persons defined in section 
         <statute_ref>352B.011, <br/>
<a id="pl.10.27"></a><var>10.27</var>subdivision 10
         </statute_ref>. <br/>
<a id="pl.10.28"></a><var>10.28</var>    Subd. 1a. <b>Member contributions.</b> (a) The member contribution is 
         <statute_ref>10.40 </statute_ref>percent <br/>
<a id="pl.10.29"></a><var>10.29</var>the following percentage of the member's salary.:<br/>
<table>
<col width="50px"/>
<col width="2.1"/>
<col width="16.1"/>
<col width="16.9"/>
<tr>
<td><a id="pl.10.30"></a><var>10.30</var><br/>
<a id="pl.10.31"></a><var>10.31</var><br/>
</td>
<td></td>
<td>(1) before the first day of the first pay <br/>
period beginning after July 1, 2011<br/>
</td>
<td>10.40 percent<br/>
</td>
</tr>
<tr>
<td><a id="pl.10.32"></a><var>10.32</var><br/>
<a id="pl.10.33"></a><var>10.33</var><br/>
</td>
<td></td>
<td>(2) on or after the first day of the first <br/>
pay period beginning after July 1, 2011<br/>
</td>
<td>12.40 percent<br/>
</td>
</tr>
</table><a id="pl.11.1"></a><var>11.1</var>(b) These contributions must be made by deduction from salary as provided in <br/>
<a id="pl.11.2"></a><var>11.2</var>section 
         <statute_ref>352.04</statute_ref>, subdivision 4.<br/>
<a id="pl.11.3"></a><var>11.3</var>    Subd. 1b. <b>Salary deductions.</b> Member contribution amounts must be deducted each <br/>
<a id="pl.11.4"></a><var>11.4</var>pay period by the department head, who shall have the total amount of the deductions paid <br/>
<a id="pl.11.5"></a><var>11.5</var>to the commissioner of management and budget for deposit in the State Patrol retirement <br/>
<a id="pl.11.6"></a><var>11.6</var>fund, and have a detailed report of all deductions made each pay period to the executive <br/>
<a id="pl.11.7"></a><var>11.7</var>director of the Minnesota State Retirement System.<br/>
<a id="pl.11.8"></a><var>11.8</var>    Subd. 1c. <b>Employer contributions.</b> (a) In addition to member contributions, <br/>
<a id="pl.11.9"></a><var>11.9</var>department heads shall pay a sum equal to 
         <statute_ref>15.60 </statute_ref>percent the specified percentage of the <br/>
<a id="pl.11.10"></a><var>11.10</var>salary upon which deductions were made, which constitutes the employer contribution <br/>
<a id="pl.11.11"></a><var>11.11</var>to the fund. as follows:<br/>
<table>
<col width="50px"/>
<col width="1.7000000000000002"/>
<col width="13.899999999999999"/>
<col width="14.6"/>
<tr>
<td><a id="pl.11.12"></a><var>11.12</var><br/>
<a id="pl.11.13"></a><var>11.13</var><br/>
</td>
<td></td>
<td>(1) before the first day of the first pay <br/>
period beginning after July 1, 2011<br/>
</td>
<td>15.60 percent<br/>
</td>
</tr>
<tr>
<td><a id="pl.11.14"></a><var>11.14</var><br/>
<a id="pl.11.15"></a><var>11.15</var><br/>
</td>
<td></td>
<td>(2) on or after the first day of the first <br/>
pay period beginning after July 1, 2011<br/>
</td>
<td>18.60 percent<br/>
</td>
</tr>
</table><a id="pl.11.16"></a><var>11.16</var>(b) Department contributions must be paid out of money appropriated to departments <br/>
<a id="pl.11.17"></a><var>11.17</var>for this purpose.<br/>
<a id="pl.11.18"></a><var>11.18</var>    Subd. 1d. <b>Fund revenue and expenses.</b> The amounts provided for in this section <br/>
<a id="pl.11.19"></a><var>11.19</var>must be credited to the State Patrol retirement fund. All money received must be deposited <br/>
<a id="pl.11.20"></a><var>11.20</var>by the commissioner of management and budget in the State Patrol retirement fund. The <br/>
<a id="pl.11.21"></a><var>11.21</var>fund must be used to pay the administrative expenses of the retirement fund, and the <br/>
<a id="pl.11.22"></a><var>11.22</var>benefits and annuities provided in this chapter. <br/>
<a id="pl.11.23"></a><var>11.23</var>    Subd. 1e. <b>Audit; </b><b>regular </b><b>actuarial valuation</b><b>; supplemental valuations</b><b>.</b> (a) The <br/>
<a id="pl.11.24"></a><var>11.24</var>legislative auditor shall audit the fund.<br/>
<a id="pl.11.25"></a><var>11.25</var>(b) Any actuarial valuation of the fund required under section 
         <statute_ref>356.215</statute_ref> must be <br/>
<a id="pl.11.26"></a><var>11.26</var>prepared by the actuary retained under section 
         <statute_ref>356.214</statute_ref>.<br/>
<a id="pl.11.27"></a><var>11.27</var>(c) Any approved actuary retained by the executive director under section 
         <statute_ref>352.03, <br/>
<a id="pl.11.28"></a><var>11.28</var>subdivision 6
         </statute_ref>, may perform actuarial valuations and experience studies to supplement <br/>
<a id="pl.11.29"></a><var>11.29</var>those performed by the actuary retained under section 
         <statute_ref>356.214</statute_ref>. Any supplemental <br/>
<a id="pl.11.30"></a><var>11.30</var>actuarial valuation or experience studies must be filed with the executive director of the <br/>
<a id="pl.11.31"></a><var>11.31</var>Legislative Commission on Pensions and Retirement.<br/>
<a id="pl.11.32"></a><var>11.32</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.0.16.0"></a><a id="pl.11.33"></a><var>11.33</var>    Sec. 16. Minnesota Statutes 2008, section 352B.08, subdivision 1, is amended to read:<br/>
<a id="pl.11.34"></a><var>11.34</var>    Subdivision 1. <b>Eligibility; when to apply; accrual.</b> (a) Every member who is <br/>
<a id="pl.11.35"></a><var>11.35</var>credited with three or more years of allowable service if first employed before July 1, <br/>
<a id="pl.12.1"></a><var>12.1</var>2010, or with at least five years of allowable service if first employed after June 30, 2010, <br/>
<a id="pl.12.2"></a><var>12.2</var>is entitled to separate from state service and upon becoming 50 years old, is entitled to <br/>
<a id="pl.12.3"></a><var>12.3</var>receive a life annuity, upon separation from state service.<br/>
<a id="pl.12.4"></a><var>12.4</var>(b) Members shall must apply for an annuity in a form and manner prescribed by the <br/>
<a id="pl.12.5"></a><var>12.5</var>executive director.<br/>
<a id="pl.12.6"></a><var>12.6</var>(c) No application may be made more than 90 days before the date the member is <br/>
<a id="pl.12.7"></a><var>12.7</var>eligible to retire by reason of both age and service requirements.<br/>
<a id="pl.12.8"></a><var>12.8</var>(d) An annuity begins to accrue no earlier than 180 days before the date the <br/>
<a id="pl.12.9"></a><var>12.9</var>application is filed with the executive director.<br/>
<a id="pl.12.10"></a><var>12.10</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.0.17.0"></a><a id="pl.12.11"></a><var>12.11</var>    Sec. 17. Minnesota Statutes 2008, section 352B.08, subdivision 2a, is amended to read:<br/>
<a id="pl.12.12"></a><var>12.12</var>    Subd. 2a. <b>Early retirement.</b> Any member who has become at least 50 years old and <br/>
<a id="pl.12.13"></a><var>12.13</var>who has at least three years of allowable service if first employed before July 1, 2010, or <br/>
<a id="pl.12.14"></a><var>12.14</var>who has at least five years of allowable service if first employed after June 30, 2010, is <br/>
<a id="pl.12.15"></a><var>12.15</var>entitled upon application to a reduced retirement annuity equal to the annuity calculated <br/>
<a id="pl.12.16"></a><var>12.16</var>under subdivision 2, reduced by one-tenth of one percent for each month that the member <br/>
<a id="pl.12.17"></a><var>12.17</var>is under age 55 at the time of retirement if first employed before July 1, 2010, or reduced <br/>
<a id="pl.12.18"></a><var>12.18</var>by two-tenths of one percent for each month that the member is under age 55 at the time of <br/>
<a id="pl.12.19"></a><var>12.19</var>retirement if first employed after June 30, 2010.<br/>
<a id="pl.12.20"></a><var>12.20</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.0.18.0"></a><a id="pl.12.21"></a><var>12.21</var>    Sec. 18. Minnesota Statutes 2008, section 352B.11, subdivision 2b, is amended to read:<br/>
<a id="pl.12.22"></a><var>12.22</var>    Subd. 2b. <b>Surviving spouse benefit eligibility.</b> (a) If an active member with three or <br/>
<a id="pl.12.23"></a><var>12.23</var>more years of allowable service if first employed before July 1, 2010, or with at least five <br/>
<a id="pl.12.24"></a><var>12.24</var>years of allowable service if first employed after June 30, 2010, dies before attaining age <br/>
<a id="pl.12.25"></a><var>12.25</var>55, the surviving spouse is entitled to the benefit specified in subdivision 2c, paragraph (b).<br/>
<a id="pl.12.26"></a><var>12.26</var>(b) If an active member with less than three years of allowable service if first <br/>
<a id="pl.12.27"></a><var>12.27</var>employed before July 1, 2010, or with fewer than five years of allowable service if first <br/>
<a id="pl.12.28"></a><var>12.28</var>employed after June 30, 2010, dies at any age, the surviving spouse is entitled to receive <br/>
<a id="pl.12.29"></a><var>12.29</var>the benefit specified in subdivision 2c, paragraph (c).<br/>
<a id="pl.12.30"></a><var>12.30</var>(c) If an active member with three or more years of allowable service if first <br/>
<a id="pl.12.31"></a><var>12.31</var>employed before July 1, 2010, or with at least five years of allowable service if first <br/>
<a id="pl.12.32"></a><var>12.32</var>employed after June 30, 2010, dies on or after attaining exact age 55, the surviving spouse <br/>
<a id="pl.12.33"></a><var>12.33</var>is entitled to receive the benefits specified in subdivision 2c, paragraph (d).<br/>
<a id="pl.13.1"></a><var>13.1</var>(d) If a disabilitant dies while receiving a disability benefit under section 
         <statute_ref>352B.10</statute_ref> or <br/>
<a id="pl.13.2"></a><var>13.2</var>before the benefit under that section commenced, and an optional annuity was not elected <br/>
<a id="pl.13.3"></a><var>13.3</var>under section 
         <statute_ref>352B.10, subdivision 5</statute_ref>, the surviving spouse is entitled to receive the benefit <br/>
<a id="pl.13.4"></a><var>13.4</var>specified in subdivision 2c, paragraph (b).  <br/>
<a id="pl.13.5"></a><var>13.5</var>(e) If a former member with three or more years of allowable service if first <br/>
<a id="pl.13.6"></a><var>13.6</var>employed before July 1, 2010, or with at least five years of allowable service if first <br/>
<a id="pl.13.7"></a><var>13.7</var>employed after June 30, 2010, who terminated from service and has not received a refund <br/>
<a id="pl.13.8"></a><var>13.8</var>or commenced receipt of any other benefit provided by this chapter, dies, the surviving <br/>
<a id="pl.13.9"></a><var>13.9</var>spouse is entitled to receive the benefit specified in subdivision 2c, paragraph (e).<br/>
<a id="pl.13.10"></a><var>13.10</var>(f) If a former member with less than three years of allowable service if first <br/>
<a id="pl.13.11"></a><var>13.11</var>employed before July 1, 2010, or with fewer than five years of allowable service if first <br/>
<a id="pl.13.12"></a><var>13.12</var>employed after June 30, 2010, who terminated from service and has not received a refund <br/>
<a id="pl.13.13"></a><var>13.13</var>or commenced receipt of any other benefit, if applicable, provided by this chapter, dies, the <br/>
<a id="pl.13.14"></a><var>13.14</var>surviving spouse is entitled to receive the refund specified in subdivision 2c, paragraph (f).<br/>
<a id="pl.13.15"></a><var>13.15</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.0.19.0"></a><a id="pl.13.16"></a><var>13.16</var>    Sec. 19. Minnesota Statutes 2008, section 352B.30, subdivision 1, is amended to read:<br/>
<a id="pl.13.17"></a><var>13.17</var>    Subdivision 1. <b>Entitlement to annuity.</b> Any person who has been an employee <br/>
<a id="pl.13.18"></a><var>13.18</var>covered by the Minnesota State Retirement System, or a member of the Public Employees <br/>
<a id="pl.13.19"></a><var>13.19</var>Retirement Association including the Public Employees Retirement Association Police <br/>
<a id="pl.13.20"></a><var>13.20</var>and Fire Fund, or the Teachers Retirement Association, or the State Patrol retirement fund, <br/>
<a id="pl.13.21"></a><var>13.21</var>or any other public employee retirement system in Minnesota having a like provision but <br/>
<a id="pl.13.22"></a><var>13.22</var>excluding all other funds providing benefits for police or firefighters is entitled when <br/>
<a id="pl.13.23"></a><var>13.23</var>qualified to an annuity from each fund if total allowable service in all funds or in any two <br/>
<a id="pl.13.24"></a><var>13.24</var>of these funds totals three or more the number of years of allowable service required by <br/>
<a id="pl.13.25"></a><var>13.25</var>the applicable retirement plan with the longest vesting period for the person. No part of <br/>
<a id="pl.13.26"></a><var>13.26</var>the allowable service upon which the retirement annuity from one fund is based may <br/>
<a id="pl.13.27"></a><var>13.27</var>again be used in the computation for benefits from another fund. The member must not <br/>
<a id="pl.13.28"></a><var>13.28</var>have taken a refund from any one of these funds since service entitling the member to <br/>
<a id="pl.13.29"></a><var>13.29</var>coverage under the system or membership in any of the associations last terminated. <br/>
<a id="pl.13.30"></a><var>13.30</var>The annuity from each fund must be determined by the appropriate law except that the <br/>
<a id="pl.13.31"></a><var>13.31</var>requirement that a person must have at least three a specific number of years allowable <br/>
<a id="pl.13.32"></a><var>13.32</var>service in the respective system or association does not apply for the purposes of this <br/>
<a id="pl.13.33"></a><var>13.33</var>section if the combined service in two or more of these funds equals three or more the <br/>
<a id="pl.13.34"></a><var>13.34</var>number of years of allowable service required by the applicable retirement plan with <br/>
<a id="pl.13.35"></a><var>13.35</var>the longest vesting period for the person.<br/>
<a id="pl.14.1"></a><var>14.1</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.0.20.0"></a><a id="pl.14.2"></a><var>14.2</var>    Sec. 20. Minnesota Statutes 2008, section 352B.30, subdivision 2, is amended to read:<br/>
<a id="pl.14.3"></a><var>14.3</var>    Subd. 2. <b>Computation of deferred annuity.</b> Deferred annuities must be computed <br/>
<a id="pl.14.4"></a><var>14.4</var>according to this chapter on the basis of allowable service before termination of service <br/>
<a id="pl.14.5"></a><var>14.5</var>and augmented as provided in this chapter. The required reserves applicable to a deferred <br/>
<a id="pl.14.6"></a><var>14.6</var>annuity must be augmented by interest compounded annually from the first day of the <br/>
<a id="pl.14.7"></a><var>14.7</var>month following the month in which the member terminated service, or July 1, 1971, <br/>
<a id="pl.14.8"></a><var>14.8</var>whichever is later, to the first day of the month in which the annuity begins to accrue. The <br/>
<a id="pl.14.9"></a><var>14.9</var>rates of interest used for this purpose shall must be five percent per year compounded <br/>
<a id="pl.14.10"></a><var>14.10</var>annually until January 1, 1981, and after that date three percent per year compounded <br/>
<a id="pl.14.11"></a><var>14.11</var>annually after January 1, 1981, until January 1, 2012, if the employee became an employee <br/>
<a id="pl.14.12"></a><var>14.12</var>before July 1, 2006, and at 2.5 percent compounded annually if the employee becomes <br/>
<a id="pl.14.13"></a><var>14.13</var>an employee after June 30, 2006, and two percent per year compounded annually after <br/>
<a id="pl.14.14"></a><var>14.14</var>December 31, 2011, irrespective of when the employee was first employed. The mortality <br/>
<a id="pl.14.15"></a><var>14.15</var>table and interest assumption used to compute the annuity shall must be those in effect <br/>
<a id="pl.14.16"></a><var>14.16</var>when the member files application for annuity.<br/>
<a id="pl.14.17"></a><var>14.17</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.0.21.0"></a><a id="pl.14.18"></a><var>14.18</var>    Sec. 21. Minnesota Statutes 2008, section 352F.07, is amended to read:<br/>
<a id="pl.14.19"></a><var>14.19</var><b>352F.07 EFFECT ON REFUND.</b><br/>
<a id="pl.14.20"></a><var>14.20</var>Notwithstanding any provision of chapter 352 to the contrary, terminated hospital <br/>
<a id="pl.14.21"></a><var>14.21</var>employees may receive a refund of employee accumulated contributions plus interest <br/>
<a id="pl.14.22"></a><var>14.22</var>at the rate of six percent per year compounded annually in accordance with Minnesota <br/>
<a id="pl.14.23"></a><var>14.23</var>Statutes 1994, section 
         <statute_ref>352.22, subdivision 2</statute_ref>, at any time after the transfer of employment <br/>
<a id="pl.14.24"></a><var>14.24</var>to Fairview, University of Minnesota Physicians, or University Affiliated Family <br/>
<a id="pl.14.25"></a><var>14.25</var>Physicians. If a terminated hospital employee has received a refund from a pension plan <br/>
<a id="pl.14.26"></a><var>14.26</var>enumerated in section 
         <statute_ref>356.30, subdivision 3</statute_ref>, the person may not repay that refund unless <br/>
<a id="pl.14.27"></a><var>14.27</var>the person again becomes a member of one of those enumerated plans and complies <br/>
<a id="pl.14.28"></a><var>14.28</var>with section 
         <statute_ref>356.30, subdivision 2</statute_ref>.  <br/>
<a id="pl.14.29"></a><var>14.29</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.0.22.0"></a><a id="pl.14.30"></a><var>14.30</var>    Sec. 22. Minnesota Statutes 2008, section 353.01, is amended by adding a subdivision <br/>
<a id="pl.14.31"></a><var>14.31</var>to read:<br/>
<a id="pl.15.1"></a><var>15.1</var>    Subd. 47. <b>Vesting.</b> (a) "Vesting" means obtaining a nonforfeitable entitlement <br/>
<a id="pl.15.2"></a><var>15.2</var>to an annuity or benefit from a retirement plan administered by the Public Employees <br/>
<a id="pl.15.3"></a><var>15.3</var>Retirement Association by having credit for sufficient allowable service under paragraph <br/>
<a id="pl.15.4"></a><var>15.4</var>(b) or (c), whichever applies.<br/>
<a id="pl.15.5"></a><var>15.5</var>(b) For purposes of qualifying for an annuity or benefit as a basic or coordinated plan <br/>
<a id="pl.15.6"></a><var>15.6</var>member of the general employees retirement plan of the Public Employees Retirement <br/>
<a id="pl.15.7"></a><var>15.7</var>Association:<br/>
<a id="pl.15.8"></a><var>15.8</var>(1) a member who first became a public employee before July 1, 2010, is vested <br/>
<a id="pl.15.9"></a><var>15.9</var>when the person has accrued credit for not less than three years of allowable service as <br/>
<a id="pl.15.10"></a><var>15.10</var>defined under subdivision 16; and<br/>
<a id="pl.15.11"></a><var>15.11</var>(2) a member who first becomes a public employee after June 30, 2010, is vested <br/>
<a id="pl.15.12"></a><var>15.12</var>when the person has accrued credit for not less than five years of allowable service <br/>
<a id="pl.15.13"></a><var>15.13</var>as defined under subdivision 16.<br/>
<a id="pl.15.14"></a><var>15.14</var>(c) For purposes of qualifying for an annuity or benefit as a member of the police <br/>
<a id="pl.15.15"></a><var>15.15</var>and fire plan or a member of the local government correctional employees retirement plan:<br/>
<a id="pl.15.16"></a><var>15.16</var>(1) a member who first became a public employee before July 1, 2010, is vested <br/>
<a id="pl.15.17"></a><var>15.17</var>when the person has accrued credit for not less than three years of allowable service as <br/>
<a id="pl.15.18"></a><var>15.18</var>defined under subdivision 16; and<br/>
<a id="pl.15.19"></a><var>15.19</var>(2) a member who first becomes a public employee after June 30, 2010, is vested <br/>
<a id="pl.15.20"></a><var>15.20</var>at the following percentages when the person has accrued credited allowable service as <br/>
<a id="pl.15.21"></a><var>15.21</var>defined under subdivision 16, as follows:<br/>
<a id="pl.15.22"></a><var>15.22</var>(i) 50 percent after five years;<br/>
<a id="pl.15.23"></a><var>15.23</var>(ii) 60 percent after six years;<br/>
<a id="pl.15.24"></a><var>15.24</var>(iii) 70 percent after seven years;<br/>
<a id="pl.15.25"></a><var>15.25</var>(iv) 80 percent after eight years;<br/>
<a id="pl.15.26"></a><var>15.26</var>(v) 90 percent after nine years; and<br/>
<a id="pl.15.27"></a><var>15.27</var>(vi) 100 percent after ten years.<br/>
<a id="pl.15.28"></a><var>15.28</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.0.23.0"></a><a id="pl.15.29"></a><var>15.29</var>    Sec. 23. Minnesota Statutes 2009 Supplement, section 353.27, subdivision 2, is <br/>
<a id="pl.15.30"></a><var>15.30</var>amended to read:<br/>
<a id="pl.15.31"></a><var>15.31</var>    Subd. 2. <b>Employee contribution.</b> (a) For a basic member, the employee <br/>
<a id="pl.15.32"></a><var>15.32</var>contribution is 9.10 percent of salary. For a coordinated member, the employee <br/>
<a id="pl.15.33"></a><var>15.33</var>contribution is six percent the following percentage of salary plus any contribution rate <br/>
<a id="pl.15.34"></a><var>15.34</var>adjustment under subdivision 3b.:<br/>
<table>
<col width="50px"/>
<col width="3.1"/>
<col width="19.3"/>
<col width="7.7"/>
<tr>
<td><a id="pl.16.1"></a><var>16.1</var><br/>
</td>
<td></td>
<td>Effective before January 1, 2011<br/>
</td>
<td>6.00<br/>
</td>
</tr>
<tr>
<td><a id="pl.16.2"></a><var>16.2</var><br/>
</td>
<td></td>
<td>Effective after December 31, 2010<br/>
</td>
<td>6.25<br/>
</td>
</tr>
</table><a id="pl.16.3"></a><var>16.3</var>(b) These contributions must be made by deduction from salary as defined in section <br/>
<statute_ref><a id="pl.16.4"></a><var>16.4</var>353.01, subdivision 10
         </statute_ref>, in the manner provided in subdivision 4. If any portion of a <br/>
<a id="pl.16.5"></a><var>16.5</var>member's salary is paid from other than public funds, the member's employee contribution <br/>
<a id="pl.16.6"></a><var>16.6</var>must be based on the total salary received by the member from all sources.<br/>
<a id="pl.16.7"></a><var>16.7</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.0.24.0"></a><a id="pl.16.8"></a><var>16.8</var>    Sec. 24. Minnesota Statutes 2009 Supplement, section 353.27, subdivision 3, is <br/>
<a id="pl.16.9"></a><var>16.9</var>amended to read:<br/>
<a id="pl.16.10"></a><var>16.10</var>    Subd. 3. <b>Employer contribution.</b> (a) For a basic member, the employer <br/>
<a id="pl.16.11"></a><var>16.11</var>contribution is 9.10 percent of salary. For a coordinated member, the employer <br/>
<a id="pl.16.12"></a><var>16.12</var>contribution is six percent the following percentage of salary plus any contribution rate <br/>
<a id="pl.16.13"></a><var>16.13</var>adjustment under subdivision 3b.:<br/>
<table>
<col width="50px"/>
<col width="3.1"/>
<col width="19.3"/>
<col width="7.7"/>
<tr>
<td><a id="pl.16.14"></a><var>16.14</var><br/>
</td>
<td></td>
<td>Effective before January 1, 2011<br/>
</td>
<td>6.00<br/>
</td>
</tr>
<tr>
<td><a id="pl.16.15"></a><var>16.15</var><br/>
</td>
<td></td>
<td>Effective after December 31, 2010<br/>
</td>
<td>6.25<br/>
</td>
</tr>
</table><a id="pl.16.16"></a><var>16.16</var>(b) This contribution must be made from funds available to the employing <br/>
<a id="pl.16.17"></a><var>16.17</var>subdivision by the means and in the manner provided in section 
         <statute_ref>353.28</statute_ref>.<br/>
<a id="pl.16.18"></a><var>16.18</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.0.25.0"></a><a id="pl.16.19"></a><var>16.19</var>    Sec. 25. Minnesota Statutes 2008, section 353.27, subdivision 3b, is amended to read:<br/>
<a id="pl.16.20"></a><var>16.20</var>    Subd. 3b. <b>Change in employee and employer contributions in certain instances.</b><br/>
<a id="pl.16.21"></a><var>16.21</var>(a) For purposes of this section,:<br/>
<a id="pl.16.22"></a><var>16.22</var>(1) a contribution sufficiency exists if the total of the employee contribution under <br/>
<a id="pl.16.23"></a><var>16.23</var>subdivision 2, the employer contribution under subdivision 3, the additional employer <br/>
<a id="pl.16.24"></a><var>16.24</var>contribution under subdivision 3a, and any additional contribution previously imposed <br/>
<a id="pl.16.25"></a><var>16.25</var>under this subdivision exceeds the total of the normal cost, the administrative expenses, <br/>
<a id="pl.16.26"></a><var>16.26</var>and the amortization contribution of the retirement plan as reported in the most recent <br/>
<a id="pl.16.27"></a><var>16.27</var>actuarial valuation of the retirement plan prepared by the actuary retained under section <br/>
<statute_ref><a id="pl.16.28"></a><var>16.28</var>356.214
         </statute_ref> and prepared under section 
         <statute_ref>356.215</statute_ref> and the standards for actuarial work of the <br/>
<a id="pl.16.29"></a><var>16.29</var>Legislative Commission on Pensions and Retirement. For purposes of this section,; and<br/>
<a id="pl.16.30"></a><var>16.30</var>(2) a contribution deficiency exists if the total of the employee contributions under <br/>
<a id="pl.16.31"></a><var>16.31</var>subdivision 2, the employer contributions under subdivision 3, the additional employer <br/>
<a id="pl.16.32"></a><var>16.32</var>contribution under subdivision 3a, and any additional contribution previously imposed <br/>
<a id="pl.16.33"></a><var>16.33</var>under this subdivision is less than the total of the normal cost, the administrative expenses, <br/>
<a id="pl.17.1"></a><var>17.1</var>and the amortization contribution of the retirement plan as reported in the most recent <br/>
<a id="pl.17.2"></a><var>17.2</var>actuarial valuation of the retirement plan prepared by the actuary retained under section <br/>
<statute_ref><a id="pl.17.3"></a><var>17.3</var>356.214
         </statute_ref> and prepared under section 
         <statute_ref>356.215</statute_ref> and the standards for actuarial work of the <br/>
<a id="pl.17.4"></a><var>17.4</var>Legislative Commission on Pensions and Retirement.<br/>
<a id="pl.17.5"></a><var>17.5</var>(b) Employee and employer contributions under subdivisions 2 and 3 must be <br/>
<a id="pl.17.6"></a><var>17.6</var>adjusted:<br/>
<a id="pl.17.7"></a><var>17.7</var>(1) if, on or after July 1, 2010, the regular actuarial valuations valuation of the <br/>
<a id="pl.17.8"></a><var>17.8</var>general employees retirement plan of the Public Employees Retirement Association under <br/>
<a id="pl.17.9"></a><var>17.9</var>section 
         <statute_ref>356.215</statute_ref> indicate indicates that there is a contribution sufficiency under paragraph <br/>
<a id="pl.17.10"></a><var>17.10</var>(a) equal to or greater than 0.5 one percent of covered payroll and that the sufficiency <br/>
<a id="pl.17.11"></a><var>17.11</var>has existed for at least two consecutive years, the coordinated program employee and <br/>
<a id="pl.17.12"></a><var>17.12</var>employer contribution rates must be decreased as determined under paragraph (c) to a <br/>
<a id="pl.17.13"></a><var>17.13</var>level such that the sufficiency equals is no more greater than 0.25 one percent of covered <br/>
<a id="pl.17.14"></a><var>17.14</var>payroll based on the most recent actuarial valuation; or<br/>
<a id="pl.17.15"></a><var>17.15</var>(2) if, on or after July 1, 2010, the regular actuarial valuations valuation of the <br/>
<a id="pl.17.16"></a><var>17.16</var>general employees retirement plan of the Public Employees Retirement Association under <br/>
<a id="pl.17.17"></a><var>17.17</var>section 
         <statute_ref>356.215</statute_ref> indicate indicates that there is a contribution deficiency equal to or greater <br/>
<a id="pl.17.18"></a><var>17.18</var>than 0.5 percent of covered payroll and that the deficiency has existed for at least two <br/>
<a id="pl.17.19"></a><var>17.19</var>consecutive years, the coordinated program employee and employer contribution rates <br/>
<a id="pl.17.20"></a><var>17.20</var>must be increased as determined under paragraph (c) (d) to a level such that no deficiency <br/>
<a id="pl.17.21"></a><var>17.21</var>exists based on the most recent actuarial valuation.<br/>
<a id="pl.17.22"></a><var>17.22</var>(c) The contribution rate increase or decrease must be determined by the executive <br/>
<a id="pl.17.23"></a><var>17.23</var>director of the Public Employees Retirement Association, must be reported to the chair <br/>
<a id="pl.17.24"></a><var>17.24</var>and the executive director of the Legislative Commission on Pensions and Retirement <br/>
<a id="pl.17.25"></a><var>17.25</var>on or before the next February 1, and, if the Legislative Commission on Pensions and <br/>
<a id="pl.17.26"></a><var>17.26</var>Retirement does not recommend against the rate change or does not recommend a <br/>
<a id="pl.17.27"></a><var>17.27</var>modification in the rate change, is effective on the next July 1 following the determination <br/>
<a id="pl.17.28"></a><var>17.28</var>by the executive director that a contribution deficiency or sufficiency has existed for <br/>
<a id="pl.17.29"></a><var>17.29</var>two consecutive fiscal years based on the most recent actuarial valuations under section <br/>
<a id="pl.17.30"></a><var>17.30</var><statute_ref>356.215</statute_ref>. If the actuarially required contribution exceeds or is less than the total support <br/>
<a id="pl.17.31"></a><var>17.31</var>provided by the combined employee and employer contribution rates under subdivisions <br/>
<a id="pl.17.32"></a><var>17.32</var>2, 3, and 3a, by more than 0.5 one percent of covered payroll, the coordinated program <br/>
<a id="pl.17.33"></a><var>17.33</var>employee and employer contribution rates under subdivisions 2 and 3 must be adjusted <br/>
<a id="pl.17.34"></a><var>17.34</var>decreased incrementally over one or more years by no more than 0.25 percent of pay each <br/>
<a id="pl.17.35"></a><var>17.35</var>for employee and employer matching contribution rates to a level such that there remains <br/>
<a id="pl.17.36"></a><var>17.36</var>a contribution sufficiency of no more than 0.25 at least one percent of covered payroll. No <br/>
<a id="pl.18.1"></a><var>18.1</var>contribution rate decrease may be made until at least two years have elapsed since any <br/>
<a id="pl.18.2"></a><var>18.2</var>adjustment under this subdivision has been fully implemented.<br/>
<a id="pl.18.3"></a><var>18.3</var>(d) No If the actuarially required contribution exceeds the total support provided <br/>
<a id="pl.18.4"></a><var>18.4</var>by the combined employee and employer contribution rates under subdivisions 2, 3, and <br/>
<a id="pl.18.5"></a><var>18.5</var>3a, the employee and matching employer contribution rates must be increased equally to <br/>
<a id="pl.18.6"></a><var>18.6</var>eliminate that contribution deficiency. If the contribution deficiency is:<br/>
<a id="pl.18.7"></a><var>18.7</var>(1) less than two percent, the incremental adjustment increase may exceed be up <br/>
<a id="pl.18.8"></a><var>18.8</var>to 0.25 percent for either the coordinated program employee and matching employer <br/>
<a id="pl.18.9"></a><var>18.9</var>contribution rates per year in which any adjustment is implemented. A contribution rate <br/>
<a id="pl.18.10"></a><var>18.10</var>adjustment under this subdivision must not be made until at least two years have passed <br/>
<a id="pl.18.11"></a><var>18.11</var>since fully implementing a previous adjustment under this subdivision.;<br/>
<a id="pl.18.12"></a><var>18.12</var>(2) greater than 1.99 percent and less than 4.01 percent, the incremental increase <br/>
<a id="pl.18.13"></a><var>18.13</var>may be up to 0.5 percent for the employee and matching employer contribution rates; or<br/>
<a id="pl.18.14"></a><var>18.14</var>(3) greater than four percent, the incremental increase may be up to 0.75 percent for <br/>
<a id="pl.18.15"></a><var>18.15</var>the employee and matching employer contribution.<br/>
<a id="pl.18.16"></a><var>18.16</var>(e) Any recommended adjustment to the contribution rates must be reported <br/>
<a id="pl.18.17"></a><var>18.17</var>to the chair and the executive director of the Legislative Commission on Pensions <br/>
<a id="pl.18.18"></a><var>18.18</var>and Retirement by January 15 following receipt of the most recent annual actuarial <br/>
<a id="pl.18.19"></a><var>18.19</var>valuation prepared under section 356.215. If the Legislative Commission on Pensions <br/>
<a id="pl.18.20"></a><var>18.20</var>and Retirement does not recommend against the rate change or does not recommend a <br/>
<a id="pl.18.21"></a><var>18.21</var>modification in the rate change, the recommended adjustment becomes effective on the <br/>
<a id="pl.18.22"></a><var>18.22</var>first day of the first full payroll period in the fiscal year following receipt of the most <br/>
<a id="pl.18.23"></a><var>18.23</var>recent actuarial valuation that gave rise to the adjustment.<br/>
<a id="pl.18.24"></a><var>18.24</var>(f) A contribution sufficiency of up to one percent of covered payroll must be held in <br/>
<a id="pl.18.25"></a><var>18.25</var>reserve to be used to offset any future actuarially required contributions that are more than <br/>
<a id="pl.18.26"></a><var>18.26</var>the total combined employee and employer contributions under subdivisions 2, 3, and 3a.<br/>
<a id="pl.18.27"></a><var>18.27</var>(g) Before any reduction in contributions to eliminate a sufficiency in excess of one <br/>
<a id="pl.18.28"></a><var>18.28</var>percent of covered pay may be recommended, the executive director must review any <br/>
<a id="pl.18.29"></a><var>18.29</var>need for a change in actuarial assumptions, as recommended by the actuary retained under <br/>
<a id="pl.18.30"></a><var>18.30</var>section 356.214 in the most recent experience study of the general employees retirement <br/>
<a id="pl.18.31"></a><var>18.31</var>plan prepared under section 356.215 and the standards for actuarial work promulgated by <br/>
<a id="pl.18.32"></a><var>18.32</var>the Legislative Commission on Pensions and Retirement that may result in an increase <br/>
<a id="pl.18.33"></a><var>18.33</var>in the actuarially required contribution and must report to the Legislative Commission <br/>
<a id="pl.18.34"></a><var>18.34</var>on Pensions and Retirement any recommendation by the board to use the sufficiency <br/>
<a id="pl.18.35"></a><var>18.35</var>exceeding one percent of covered payroll to offset the impact of an actuarial assumption <br/>
<a id="pl.19.1"></a><var>19.1</var>change recommended by the actuary retained under section 356.214, subdivision 1, and <br/>
<a id="pl.19.2"></a><var>19.2</var>reviewed by the actuary retained by the commission under section 356.214, subdivision 4.<br/>
<a id="pl.19.3"></a><var>19.3</var>(h) No contribution sufficiency in excess of one percent of covered pay may be <br/>
<a id="pl.19.4"></a><var>19.4</var>proposed to be used to increase benefits, and no benefit increase may be proposed that <br/>
<a id="pl.19.5"></a><var>19.5</var>would initiate an automatic adjustment to increase contributions under this subdivision. <br/>
<a id="pl.19.6"></a><var>19.6</var>Any proposed benefit improvement must include a recommendation, prepared by the <br/>
<a id="pl.19.7"></a><var>19.7</var>actuary retained under section 356.214, subdivision 1, and reviewed by the actuary <br/>
<a id="pl.19.8"></a><var>19.8</var>retained by the Legislative Commission on Pensions and Retirement as provided under <br/>
<a id="pl.19.9"></a><var>19.9</var>section 356.214, subdivision 4, on how the benefit modification will be funded.<br/>
<a id="pl.19.10"></a><var>19.10</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.0.26.0"></a><a id="pl.19.11"></a><var>19.11</var>    Sec. 26. Minnesota Statutes 2008, section 353.29, subdivision 1, is amended to read:<br/>
<a id="pl.19.12"></a><var>19.12</var>    Subdivision 1. <b>Age and allowable service requirements.</b> Upon termination of <br/>
<a id="pl.19.13"></a><var>19.13</var>membership, a person who has attained normal retirement age and who received credit for <br/>
<a id="pl.19.14"></a><var>19.14</var>not less than three years of allowable service is vested under section 353.01, subdivision <br/>
<a id="pl.19.15"></a><var>19.15</var>47, is entitled upon application to a retirement annuity. The retirement annuity is known <br/>
<a id="pl.19.16"></a><var>19.16</var>as the "normal" retirement annuity.<br/>
<a id="pl.19.17"></a><var>19.17</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.0.27.0"></a><a id="pl.19.18"></a><var>19.18</var>    Sec. 27. Minnesota Statutes 2008, section 353.30, subdivision 1c, is amended to read:<br/>
<a id="pl.19.19"></a><var>19.19</var>    Subd. 1c. <b>Pre-July 1, 1989, members: early retirement.</b> Upon termination of <br/>
<a id="pl.19.20"></a><var>19.20</var>public service, a person who first became a public employee or a member of a pension <br/>
<a id="pl.19.21"></a><var>19.21</var>fund listed in section 
         <statute_ref>356.30, subdivision 3</statute_ref>, before July 1, 1989, who has become at least <br/>
<a id="pl.19.22"></a><var>19.22</var>55 years old but not normal retirement age, and has received credit for at least three years <br/>
<a id="pl.19.23"></a><var>19.23</var>of allowable service is vested under section 353.01, subdivision 47, is entitled, upon <br/>
<a id="pl.19.24"></a><var>19.24</var>application, to a retirement annuity in an amount equal to the normal annuity provided in <br/>
<a id="pl.19.25"></a><var>19.25</var>section 
         <statute_ref>353.29, subdivision 3</statute_ref>, paragraph (a), reduced by one-quarter of one percent for <br/>
<a id="pl.19.26"></a><var>19.26</var>each month that the member is under normal retirement age at the time of retirement. <br/>
<a id="pl.19.27"></a><var>19.27</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.0.28.0"></a><a id="pl.19.28"></a><var>19.28</var>    Sec. 28. Minnesota Statutes 2008, section 353.32, subdivision 1, is amended to read:<br/>
<a id="pl.19.29"></a><var>19.29</var>    Subdivision 1. <b>Before retirement.</b> If a member or former member who terminated <br/>
<a id="pl.19.30"></a><var>19.30</var>public service dies before retirement or before receiving any retirement annuity and no <br/>
<a id="pl.19.31"></a><var>19.31</var>other payment of any kind is or may become payable to any person, a refund shall be paid <br/>
<a id="pl.19.32"></a><var>19.32</var>is payable to the designated beneficiary or, if there be none, to the surviving spouse, <br/>
<a id="pl.20.1"></a><var>20.1</var>or, if none, to the legal representative of the decedent's estate. Such The refund shall <br/>
<a id="pl.20.2"></a><var>20.2</var>must be in an amount equal to accumulated deductions plus annual compound interest <br/>
<a id="pl.20.3"></a><var>20.3</var>thereon at the rate of six percent per annum compounded annually specified in section <br/>
<a id="pl.20.4"></a><var>20.4</var>353.34, subdivision 2, and less the sum of any disability or survivor benefits, if any, that <br/>
<a id="pl.20.5"></a><var>20.5</var>may have been paid by the fund; provided that a survivor who has a right to benefits <br/>
<a id="pl.20.6"></a><var>20.6</var>pursuant to under section 
         <statute_ref>353.31</statute_ref> may waive such benefits in writing, except such benefits <br/>
<a id="pl.20.7"></a><var>20.7</var>for a dependent child under the age of 18 years may only be waived pursuant to under an <br/>
<a id="pl.20.8"></a><var>20.8</var>order of the district court.  <br/>
<a id="pl.20.9"></a><var>20.9</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.0.29.0"></a><a id="pl.20.10"></a><var>20.10</var>    Sec. 29. Minnesota Statutes 2008, section 353.32, subdivision 1a, is amended to read:<br/>
<a id="pl.20.11"></a><var>20.11</var>    Subd. 1a. <b>Surviving spouse optional annuity.</b> (a) If a member or former member <br/>
<a id="pl.20.12"></a><var>20.12</var>who has credit for not less than three years of allowable service is vested under section <br/>
<a id="pl.20.13"></a><var>20.13</var>353.01, subdivision 47, and who dies before the annuity or disability benefit begins to <br/>
<a id="pl.20.14"></a><var>20.14</var>accrue under section 
         <statute_ref>353.29, subdivision 7</statute_ref>, or 
         <statute_ref>353.33, subdivision 2</statute_ref>, notwithstanding any <br/>
<a id="pl.20.15"></a><var>20.15</var>designation of beneficiary to the contrary, the surviving spouse may elect to receive, <br/>
<a id="pl.20.16"></a><var>20.16</var>instead of a refund with interest under subdivision 1, or surviving spouse benefits otherwise <br/>
<a id="pl.20.17"></a><var>20.17</var>payable under section 
         <statute_ref>353.31</statute_ref>, an annuity equal to a 100 percent joint and survivor annuity <br/>
<a id="pl.20.18"></a><var>20.18</var>computed consistent with section 
         <statute_ref>353.30, subdivision 1a</statute_ref>, 1c, or 5, whichever is applicable. <br/>
<a id="pl.20.19"></a><var>20.19</var>    (b) If a member first became a public employee or a member of a pension fund listed <br/>
<a id="pl.20.20"></a><var>20.20</var>in section 
         <statute_ref>356.30, subdivision 3</statute_ref>, before July 1, 1989, and has credit for at least 30 years <br/>
<a id="pl.20.21"></a><var>20.21</var>of allowable service on the date of death, the surviving spouse may elect to receive a <br/>
<a id="pl.20.22"></a><var>20.22</var>100 percent joint and survivor annuity computed using section 
         <statute_ref>353.30, subdivision 1b</statute_ref>, <br/>
<a id="pl.20.23"></a><var>20.23</var>except that the early retirement reduction under that provision will be applied from age <br/>
<a id="pl.20.24"></a><var>20.24</var>62 back to age 55 and one-half of the early retirement reduction from age 55 back to <br/>
<a id="pl.20.25"></a><var>20.25</var>the age payment begins. <br/>
<a id="pl.20.26"></a><var>20.26</var>    (c) If a member who was under age 55 and has credit for at least three years of <br/>
<a id="pl.20.27"></a><var>20.27</var>allowable service who is vested under section 353.01, subdivision 47, dies, but did not <br/>
<a id="pl.20.28"></a><var>20.28</var>qualify for retirement on the date of death, the surviving spouse may elect to receive a <br/>
<a id="pl.20.29"></a><var>20.29</var>100 percent joint and survivor annuity computed using section 
         <statute_ref>353.30, subdivision 1c</statute_ref> or <br/>
<a id="pl.20.30"></a><var>20.30</var>5, as applicable, except that the early retirement reduction specified in the applicable <br/>
<a id="pl.20.31"></a><var>20.31</var>subdivision will be applied to age 55 and one-half of the early retirement reduction from <br/>
<a id="pl.20.32"></a><var>20.32</var>age 55 back to the age payment begins. <br/>
<a id="pl.20.33"></a><var>20.33</var>    (d) Notwithstanding the definition of surviving spouse in section 
         <statute_ref>353.01, subdivision <br/>
<a id="pl.20.34"></a><var>20.34</var>20
         </statute_ref>, a former spouse of the member, if any, is entitled to a portion of the monthly surviving <br/>
<a id="pl.20.35"></a><var>20.35</var>spouse optional annuity if stipulated under the terms of a marriage dissolution decree filed <br/>
<a id="pl.21.1"></a><var>21.1</var>with the association. If there is no surviving spouse or child or children, a former spouse <br/>
<a id="pl.21.2"></a><var>21.2</var>may be entitled to a lump-sum refund payment under subdivision 1, if provided for in a <br/>
<a id="pl.21.3"></a><var>21.3</var>marriage dissolution decree, but not a monthly surviving spouse optional annuity, despite <br/>
<a id="pl.21.4"></a><var>21.4</var>the terms of a marriage dissolution decree filed with the association. <br/>
<a id="pl.21.5"></a><var>21.5</var>    (e) The surviving spouse eligible for surviving spouse benefits under paragraph (a) <br/>
<a id="pl.21.6"></a><var>21.6</var>may apply for the annuity at any time after the date on which the deceased employee <br/>
<a id="pl.21.7"></a><var>21.7</var>would have attained the required age for retirement based on the employee's allowable <br/>
<a id="pl.21.8"></a><var>21.8</var>service. The surviving spouse eligible for surviving spouse benefits under paragraph (b) or <br/>
<a id="pl.21.9"></a><var>21.9</var>(c) may apply for an annuity any time after the member's death. <br/>
<a id="pl.21.10"></a><var>21.10</var>    (f) Sections 
         <statute_ref>353.34, subdivision 3</statute_ref>, and 
         <statute_ref>353.71, subdivision 2</statute_ref>, apply to a deferred <br/>
<a id="pl.21.11"></a><var>21.11</var>annuity or surviving spouse benefit payable under this subdivision. <br/>
<a id="pl.21.12"></a><var>21.12</var>    (g) An amount equal to any excess of the accumulated contributions that were <br/>
<a id="pl.21.13"></a><var>21.13</var>credited to the account of the deceased employee over and above the total of the annuities <br/>
<a id="pl.21.14"></a><var>21.14</var>paid and payable to the surviving spouse must be paid to the surviving spouse's estate. <br/>
<a id="pl.21.15"></a><var>21.15</var>    (h) A member may specify in writing, with the signed consent of the spouse, that <br/>
<a id="pl.21.16"></a><var>21.16</var>this subdivision does not apply and that payment may be made only to the designated <br/>
<a id="pl.21.17"></a><var>21.17</var>beneficiary as otherwise provided by this chapter. The waiver of a surviving spouse <br/>
<a id="pl.21.18"></a><var>21.18</var>annuity under this section does not make a dependent child eligible for benefits under <br/>
<a id="pl.21.19"></a><var>21.19</var>subdivision 1c. <br/>
<a id="pl.21.20"></a><var>21.20</var>    (i) If the deceased member or former member first became a public employee or a <br/>
<a id="pl.21.21"></a><var>21.21</var>member of a public pension plan listed in section 
         <statute_ref>356.30, subdivision 3</statute_ref>, on or after July <br/>
<a id="pl.21.22"></a><var>21.22</var>1, 1989, a survivor annuity computed under paragraph (a) or (c) must be computed as <br/>
<a id="pl.21.23"></a><var>21.23</var>specified in section 
         <statute_ref>353.30, subdivision 5</statute_ref>, except for the revised early retirement reduction <br/>
<a id="pl.21.24"></a><var>21.24</var>specified in paragraph (c), if paragraph (c) is the applicable provision.<br/>
<a id="pl.21.25"></a><var>21.25</var>    (j) For any survivor annuity determined under this subdivision, the payment is to be <br/>
<a id="pl.21.26"></a><var>21.26</var>based on the total allowable service that the member had accrued as of the date of death <br/>
<a id="pl.21.27"></a><var>21.27</var>and the age of the member and surviving spouse on that date.<br/>
<a id="pl.21.28"></a><var>21.28</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.0.30.0"></a><a id="pl.21.29"></a><var>21.29</var>    Sec. 30. Minnesota Statutes 2009 Supplement, section 353.33, subdivision 1, is <br/>
<a id="pl.21.30"></a><var>21.30</var>amended to read:<br/>
<a id="pl.21.31"></a><var>21.31</var>    Subdivision 1. <b>Age, service, and salary requirements.</b> (a) A coordinated or <br/>
<a id="pl.21.32"></a><var>21.32</var>basic member who has at least three years of allowable service is vested under section <br/>
<a id="pl.21.33"></a><var>21.33</var>353.01, subdivision 47, and who becomes totally and permanently disabled before normal <br/>
<a id="pl.21.34"></a><var>21.34</var>retirement age, upon application as defined under section 
         <statute_ref>353.031</statute_ref>, is entitled to a disability <br/>
<a id="pl.21.35"></a><var>21.35</var>benefit in an amount determined under subdivision 3.<br/>
<a id="pl.22.1"></a><var>22.1</var>(b) If the disabled person's public service has terminated at any time, at least two of <br/>
<a id="pl.22.2"></a><var>22.2</var>the required three years of allowable service required to be vested under section 353.01, <br/>
<a id="pl.22.3"></a><var>22.3</var>subdivision 47, must have been rendered after last becoming an active member. <br/>
<a id="pl.22.4"></a><var>22.4</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.0.31.0"></a><a id="pl.22.5"></a><var>22.5</var>    Sec. 31. Minnesota Statutes 2008, section 353.34, subdivision 1, is amended to read:<br/>
<a id="pl.22.6"></a><var>22.6</var>    Subdivision 1. <b>Refund or deferred annuity.</b> (a) A former member is entitled to <br/>
<a id="pl.22.7"></a><var>22.7</var>either a refund of accumulated employee deductions under subdivision 2, or to a deferred <br/>
<a id="pl.22.8"></a><var>22.8</var>annuity under subdivision 3. Application for a refund may not be made before the date of <br/>
<a id="pl.22.9"></a><var>22.9</var>termination of public service. Except as specified in paragraph (b), a refund must be paid <br/>
<a id="pl.22.10"></a><var>22.10</var>within 120 days following receipt of the application unless the applicant has again become <br/>
<a id="pl.22.11"></a><var>22.11</var>a public employee required to be covered by the association.<br/>
<a id="pl.22.12"></a><var>22.12</var>(b) If an individual was placed on layoff under section 
         <statute_ref>353.01</statute_ref>, subdivision 12 or 12c, <br/>
<a id="pl.22.13"></a><var>22.13</var>a refund is not payable before termination of service under section 
         <statute_ref>353.01, subdivision</statute_ref> 11a. <br/>
<a id="pl.22.14"></a><var>22.14</var>(c) An individual who terminates public service covered by the Public Employees <br/>
<a id="pl.22.15"></a><var>22.15</var>Retirement Association general employees retirement plan, the Public Employees <br/>
<a id="pl.22.16"></a><var>22.16</var>Retirement Association police and fire retirement plan, or the public employees local <br/>
<a id="pl.22.17"></a><var>22.17</var>government corrections correctional service retirement plan, and who is employed by a <br/>
<a id="pl.22.18"></a><var>22.18</var>different employer and who becomes an active member covered by one of the other two <br/>
<a id="pl.22.19"></a><var>22.19</var>plans, may receive a refund of employee contributions plus six percent annual compound <br/>
<a id="pl.22.20"></a><var>22.20</var>interest compounded annually from the plan from which the member terminated service at <br/>
<a id="pl.22.21"></a><var>22.21</var>the applicable rate specified in subdivision 2.<br/>
<a id="pl.22.22"></a><var>22.22</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.0.32.0"></a><a id="pl.22.23"></a><var>22.23</var>    Sec. 32. Minnesota Statutes 2008, section 353.34, subdivision 2, is amended to read:<br/>
<a id="pl.22.24"></a><var>22.24</var>    Subd. 2. <b>Refund with interest.</b> (a) Except as provided in subdivision 1, any person <br/>
<a id="pl.22.25"></a><var>22.25</var>who ceases to be a public employee shall is entitled to receive a refund in an amount equal <br/>
<a id="pl.22.26"></a><var>22.26</var>to accumulated deductions with annual compound interest to the first day of the month <br/>
<a id="pl.22.27"></a><var>22.27</var>in which the refund is processed at the rate of six percent compounded annually based <br/>
<a id="pl.22.28"></a><var>22.28</var>on fiscal year balances.<br/>
<a id="pl.22.29"></a><var>22.29</var>(b) For a person who ceases to be a public employee before July 1, 2011, the refund <br/>
<a id="pl.22.30"></a><var>22.30</var>interest is at the rate of six percent to June 30, 2011, and at the rate of four percent after <br/>
<a id="pl.22.31"></a><var>22.31</var>June 30, 2011. For a person who ceases to be a public employee after July 1, 2011, the <br/>
<a id="pl.22.32"></a><var>22.32</var>refund interest is at the rate of four percent.<br/>
<a id="pl.23.1"></a><var>23.1</var>(c) If a person repays a refund and subsequently applies for another refund, the <br/>
<a id="pl.23.2"></a><var>23.2</var>repayment amount, including interest, is added to the fiscal year balance in which the <br/>
<a id="pl.23.3"></a><var>23.3</var>repayment was made.<br/>
<a id="pl.23.4"></a><var>23.4</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.0.33.0"></a><a id="pl.23.5"></a><var>23.5</var>    Sec. 33. Minnesota Statutes 2008, section 353.34, subdivision 3, is amended to read:<br/>
<a id="pl.23.6"></a><var>23.6</var>    Subd. 3. <b>Deferred annuity; eligibility; computation.</b> (a) A member with at least <br/>
<a id="pl.23.7"></a><var>23.7</var>three years of allowable service who is vested under section 353.01, subdivision 47, when <br/>
<a id="pl.23.8"></a><var>23.8</var>termination of public service or termination of membership occurs has the option of <br/>
<a id="pl.23.9"></a><var>23.9</var>leaving the accumulated deductions in the fund and being entitled to a deferred retirement <br/>
<a id="pl.23.10"></a><var>23.10</var>annuity commencing at normal retirement age or to a deferred early retirement annuity <br/>
<a id="pl.23.11"></a><var>23.11</var>under section 
         <statute_ref>353.30, subdivision </statute_ref>1a, 1b, 1c, or 5.<br/>
<a id="pl.23.12"></a><var>23.12</var>(b) The deferred annuity must be computed under section 
         <statute_ref>353.29, subdivision 3</statute_ref>, on <br/>
<a id="pl.23.13"></a><var>23.13</var>the basis of the law in effect on the date of termination of public service or termination of <br/>
<a id="pl.23.14"></a><var>23.14</var>membership, whichever is earlier, and must be augmented as provided in section 
         <statute_ref>353.71, <br/>
<a id="pl.23.15"></a><var>23.15</var>subdivision 2
         </statute_ref>.<br/>
<a id="pl.23.16"></a><var>23.16</var>(c) A former member qualified to apply for a deferred retirement annuity may <br/>
<a id="pl.23.17"></a><var>23.17</var>revoke this option at any time before the commencement of deferred annuity payments <br/>
<a id="pl.23.18"></a><var>23.18</var>by making application for a refund. The person is entitled to a refund of accumulated <br/>
<a id="pl.23.19"></a><var>23.19</var>member contributions within 30 days following date of receipt of the application by the <br/>
<a id="pl.23.20"></a><var>23.20</var>executive director. <br/>
<a id="pl.23.21"></a><var>23.21</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.0.34.0"></a><a id="pl.23.22"></a><var>23.22</var>    Sec. 34. Minnesota Statutes 2009 Supplement, section 353.65, subdivision 2, is <br/>
<a id="pl.23.23"></a><var>23.23</var>amended to read:<br/>
<a id="pl.23.24"></a><var>23.24</var>    Subd. 2. <b>Employee contribution.</b>  The employee contribution is 9.4 percent of the <br/>
<a id="pl.23.25"></a><var>23.25</var>salary of the member in calendar year 2010 and is 9.6 percent of the salary of the member <br/>
<a id="pl.23.26"></a><var>23.26</var>in each calendar year after 2010. This contribution must be made by deduction from <br/>
<a id="pl.23.27"></a><var>23.27</var>salary in the manner provided in subdivision 4. Where any portion of a member's salary <br/>
<a id="pl.23.28"></a><var>23.28</var>is paid from other than public funds, the member's employee contribution is based on <br/>
<a id="pl.23.29"></a><var>23.29</var>the total salary received from all sources.<br/>
<a id="pl.23.30"></a><var>23.30</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.0.35.0"></a><a id="pl.23.31"></a><var>23.31</var>    Sec. 35. Minnesota Statutes 2009 Supplement, section 353.65, subdivision 3, is <br/>
<a id="pl.23.32"></a><var>23.32</var>amended to read:<br/>
<a id="pl.24.1"></a><var>24.1</var>    Subd. 3. <b>Employer contribution.</b>  The employer contribution is 14.1 percent of the <br/>
<a id="pl.24.2"></a><var>24.2</var>salary of the member in calendar year 2010 and is 14.4 percent of the salary of the member <br/>
<a id="pl.24.3"></a><var>24.3</var>in each calendar year after 2010. This contribution must be made from funds available to <br/>
<a id="pl.24.4"></a><var>24.4</var>the employing subdivision by the means and in the manner provided in section 
         <statute_ref>353.28</statute_ref>.<br/>
<a id="pl.24.5"></a><var>24.5</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.0.36.0"></a><a id="pl.24.6"></a><var>24.6</var>    Sec. 36. Minnesota Statutes 2008, section 353.651, subdivision 1, is amended to read:<br/>
<a id="pl.24.7"></a><var>24.7</var>    Subdivision 1. <b>Age and allowable service requirements.</b> Upon separation from <br/>
<a id="pl.24.8"></a><var>24.8</var>public service, any police officer or firefighter member who has attained the age of at <br/>
<a id="pl.24.9"></a><var>24.9</var>least 55 years and who received credit for not less than three years of allowable service <br/>
<a id="pl.24.10"></a><var>24.10</var>is vested under section 353.01, subdivision 47, is entitled upon application to a retirement <br/>
<a id="pl.24.11"></a><var>24.11</var>annuity. Such retirement annuity is, known as the "normal" retirement annuity.<br/>
<a id="pl.24.12"></a><var>24.12</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.0.37.0"></a><a id="pl.24.13"></a><var>24.13</var>    Sec. 37. Minnesota Statutes 2008, section 353.651, subdivision 4, is amended to read:<br/>
<a id="pl.24.14"></a><var>24.14</var>    Subd. 4. <b>Early retirement.</b> (a) A person who becomes a police and fire plan <br/>
<a id="pl.24.15"></a><var>24.15</var>member after June 30, 2007, or a former member who is reinstated as a member of the <br/>
<a id="pl.24.16"></a><var>24.16</var>plan after that date, who is at least 50 years of age with at least three years of allowable <br/>
<a id="pl.24.17"></a><var>24.17</var>service and who is vested under section 353.01, subdivision 47, upon the termination of <br/>
<a id="pl.24.18"></a><var>24.18</var>public service is entitled upon application to a retirement annuity equal to the normal <br/>
<a id="pl.24.19"></a><var>24.19</var>annuity calculated under subdivision 3, reduced by two-tenths of one percent for each <br/>
<a id="pl.24.20"></a><var>24.20</var>month that the member is under age 55 at the time of retirement.<br/>
<a id="pl.24.21"></a><var>24.21</var>    (b) Upon the termination of public service, any police and fire plan member not <br/>
<a id="pl.24.22"></a><var>24.22</var>specified in paragraph (a), upon attaining at least 50 years of age with at least three years <br/>
<a id="pl.24.23"></a><var>24.23</var>of allowable service is entitled upon application to a retirement annuity equal to the <br/>
<a id="pl.24.24"></a><var>24.24</var>normal annuity calculated under subdivision 3, reduced by one-tenth of one percent for <br/>
<a id="pl.24.25"></a><var>24.25</var>each month that the member is under age 55 at the time of retirement.<br/>
<a id="pl.24.26"></a><var>24.26</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.0.38.0"></a><a id="pl.24.27"></a><var>24.27</var>    Sec. 38. Minnesota Statutes 2008, section 353.657, subdivision 1, is amended to read:<br/>
<a id="pl.24.28"></a><var>24.28</var>    Subdivision 1. <b>Generally.</b> (a) In the event that a member of the police and fire <br/>
<a id="pl.24.29"></a><var>24.29</var>fund dies from any cause before retirement or before becoming disabled and receiving <br/>
<a id="pl.24.30"></a><var>24.30</var>disability benefits, the association shall grant survivor benefits to a surviving spouse, as <br/>
<a id="pl.24.31"></a><var>24.31</var>defined in section 
         <statute_ref>353.01, subdivision 20</statute_ref>, and to a dependent child or children, as defined <br/>
<a id="pl.24.32"></a><var>24.32</var>in section 
         <statute_ref>353.01, subdivision 15</statute_ref>, except that if the death is not a line of duty death, the <br/>
<a id="pl.25.1"></a><var>25.1</var>member must have accrued at least three years of credited service be vested under section <br/>
<a id="pl.25.2"></a><var>25.2</var>353.01, subdivision 47.<br/>
<a id="pl.25.3"></a><var>25.3</var>    (b) Notwithstanding the definition of surviving spouse, a former spouse of the <br/>
<a id="pl.25.4"></a><var>25.4</var>member, if any, is entitled to a portion of the monthly surviving spouse benefit if <br/>
<a id="pl.25.5"></a><var>25.5</var>stipulated under the terms of a marriage dissolution decree filed with the association. If <br/>
<a id="pl.25.6"></a><var>25.6</var>there is no surviving spouse or child or children, a former spouse may be entitled to <br/>
<a id="pl.25.7"></a><var>25.7</var>a lump-sum refund payment under section 
         <statute_ref>353.32, subdivision 1</statute_ref>, if provided for in a <br/>
<a id="pl.25.8"></a><var>25.8</var>marriage dissolution decree but not a monthly surviving spouse benefit despite the terms <br/>
<a id="pl.25.9"></a><var>25.9</var>of a marriage dissolution decree filed with the association.<br/>
<a id="pl.25.10"></a><var>25.10</var>    (c) The spouse and child or children are entitled to monthly benefits as provided in <br/>
<a id="pl.25.11"></a><var>25.11</var>subdivisions 2 to 4.<br/>
<a id="pl.25.12"></a><var>25.12</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.0.39.0"></a><a id="pl.25.13"></a><var>25.13</var>    Sec. 39. Minnesota Statutes 2008, section 353.657, subdivision 2a, is amended to read:<br/>
<a id="pl.25.14"></a><var>25.14</var>    Subd. 2a. <b>Death while eligible survivor benefit.</b> (a) If a member or former member <br/>
<a id="pl.25.15"></a><var>25.15</var>who has attained the age of at least 50 years and has credit for not less than three years <br/>
<a id="pl.25.16"></a><var>25.16</var>allowable service either who is vested under section 353.01, subdivision 47, or who has <br/>
<a id="pl.25.17"></a><var>25.17</var>credit for at least 30 years of allowable service, regardless of age attained, dies before <br/>
<a id="pl.25.18"></a><var>25.18</var>the annuity or disability benefit becomes payable, notwithstanding any designation of <br/>
<a id="pl.25.19"></a><var>25.19</var>beneficiary to the contrary, the surviving spouse may elect to receive a death while <br/>
<a id="pl.25.20"></a><var>25.20</var>eligible survivor benefit.<br/>
<a id="pl.25.21"></a><var>25.21</var>    (b) Notwithstanding the definition of surviving spouse in section 
         <statute_ref>353.01, subdivision <br/>
<a id="pl.25.22"></a><var>25.22</var>20
         </statute_ref>, a former spouse of the member, if any, is entitled to a portion of the death while <br/>
<a id="pl.25.23"></a><var>25.23</var>eligible survivor benefit if stipulated under the terms of a marriage dissolution decree <br/>
<a id="pl.25.24"></a><var>25.24</var>filed with the association. If there is no surviving spouse or child or children, a former <br/>
<a id="pl.25.25"></a><var>25.25</var>spouse may be entitled to a lump-sum refund payment under section 
         <statute_ref>353.32, subdivision <br/>
<a id="pl.25.26"></a><var>25.26</var>1
         </statute_ref>, if provided for in a marriage dissolution decree but not a death while eligible survivor <br/>
<a id="pl.25.27"></a><var>25.27</var>benefit despite the terms of a marriage dissolution decree filed with the association. <br/>
<a id="pl.25.28"></a><var>25.28</var>    (c) The benefit may be elected instead of a refund with interest under section 
         <statute_ref>353.32, <br/>
<a id="pl.25.29"></a><var>25.29</var>subdivision 1
         </statute_ref>, or surviving spouse benefits otherwise payable under subdivisions 1 and <br/>
<a id="pl.25.30"></a><var>25.30</var>2. The benefit must be an annuity equal to the 100 percent joint and survivor annuity <br/>
<a id="pl.25.31"></a><var>25.31</var>which the member could have qualified for on the date of death, computed as provided in <br/>
<a id="pl.25.32"></a><var>25.32</var>sections 
         <statute_ref>353.651, subdivisions 2 and 3</statute_ref>, and 
         <statute_ref>353.30, subdivision 3</statute_ref>. <br/>
<a id="pl.25.33"></a><var>25.33</var>    (d) The surviving spouse may apply for the annuity at any time after the date <br/>
<a id="pl.25.34"></a><var>25.34</var>on which the deceased employee would have attained the required age for retirement <br/>
<a id="pl.26.1"></a><var>26.1</var>based on the employee's allowable service. Sections 
         <statute_ref>353.34, subdivision 3</statute_ref>, and 
         <statute_ref>353.71, <br/>
<a id="pl.26.2"></a><var>26.2</var>subdivision 2
         </statute_ref>, apply to a deferred annuity payable under this subdivision.<br/>
<a id="pl.26.3"></a><var>26.3</var>    (e) No payment accrues beyond the end of the month in which entitlement to <br/>
<a id="pl.26.4"></a><var>26.4</var>such annuity has terminated. An amount equal to the excess, if any, of the accumulated <br/>
<a id="pl.26.5"></a><var>26.5</var>contributions which were credited to the account of the deceased employee over and <br/>
<a id="pl.26.6"></a><var>26.6</var>above the total of the annuities paid and payable to the surviving spouse must be paid to <br/>
<a id="pl.26.7"></a><var>26.7</var>the deceased member's last designated beneficiary or, if none, to the legal representative of <br/>
<a id="pl.26.8"></a><var>26.8</var>the estate of such deceased member.<br/>
<a id="pl.26.9"></a><var>26.9</var>    (f) Any member may request in writing, with the signed consent of the spouse, that <br/>
<a id="pl.26.10"></a><var>26.10</var>this subdivision not apply and that payment be made only to the designated beneficiary, as <br/>
<a id="pl.26.11"></a><var>26.11</var>otherwise provided by this chapter.<br/>
<a id="pl.26.12"></a><var>26.12</var>    (g) For a member who is employed as a full-time firefighter by the Department of <br/>
<a id="pl.26.13"></a><var>26.13</var>Military Affairs of the state of Minnesota, allowable service as a full-time state Military <br/>
<a id="pl.26.14"></a><var>26.14</var>Affairs Department firefighter credited by the Minnesota State Retirement System may be <br/>
<a id="pl.26.15"></a><var>26.15</var>used in meeting the minimum allowable service requirement of this subdivision.<br/>
<a id="pl.26.16"></a><var>26.16</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.0.40.0"></a><a id="pl.26.17"></a><var>26.17</var>    Sec. 40. Minnesota Statutes 2008, section 353.71, subdivision 1, is amended to read:<br/>
<a id="pl.26.18"></a><var>26.18</var>    Subdivision 1. <b>Eligibility.</b> Any person who has been a member of a defined benefit <br/>
<a id="pl.26.19"></a><var>26.19</var>retirement plan administered by the Public Employees Retirement Association, or a <br/>
<a id="pl.26.20"></a><var>26.20</var>retirement plan administered by the Minnesota State Retirement System, or the Teachers <br/>
<a id="pl.26.21"></a><var>26.21</var>Retirement Association, or any other public retirement system in the state of Minnesota <br/>
<a id="pl.26.22"></a><var>26.22</var>having a like provision, except a fund retirement plan providing benefits for police officers <br/>
<a id="pl.26.23"></a><var>26.23</var>or firefighters governed by sections 
         <statute_ref>69.77</statute_ref> or 
         <statute_ref>69.771</statute_ref> to 
         <statute_ref>69.776</statute_ref>, shall be is entitled, when <br/>
<a id="pl.26.24"></a><var>26.24</var>qualified, to an annuity from each fund retirement plan if the total allowable service in all <br/>
<a id="pl.26.25"></a><var>26.25</var>funds retirement plans or in any two of these funds retirement plans totals three or more <br/>
<a id="pl.26.26"></a><var>26.26</var>years the number of years of allowable service required to receive a normal retirement <br/>
<a id="pl.26.27"></a><var>26.27</var>annuity for that retirement plan, provided that no portion of the allowable service upon <br/>
<a id="pl.26.28"></a><var>26.28</var>which the retirement annuity from one fund retirement plan is based is again used in the <br/>
<a id="pl.26.29"></a><var>26.29</var>computation for benefits from another fund retirement plan and provided further that the <br/>
<a id="pl.26.30"></a><var>26.30</var>person has not taken a refund from any one of these funds retirement plans since the <br/>
<a id="pl.26.31"></a><var>26.31</var>person's membership in that association or system last terminated. The annuity from <br/>
<a id="pl.26.32"></a><var>26.32</var>each fund shall must be determined by the appropriate provisions of the law except that <br/>
<a id="pl.26.33"></a><var>26.33</var>the requirement that a person must have at least three years a specific minimum period <br/>
<a id="pl.26.34"></a><var>26.34</var>of allowable service in the respective association or system shall does not apply for the <br/>
<a id="pl.26.35"></a><var>26.35</var>purposes of this section provided if the combined service in two or more of these funds <br/>
<a id="pl.27.1"></a><var>27.1</var>retirement plans equals three or more the number of years of allowable service required to <br/>
<a id="pl.27.2"></a><var>27.2</var>receive a normal retirement annuity for that retirement plan. <br/>
<a id="pl.27.3"></a><var>27.3</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.0.41.0"></a><a id="pl.27.4"></a><var>27.4</var>    Sec. 41. Minnesota Statutes 2008, section 353.71, subdivision 2, is amended to read:<br/>
<a id="pl.27.5"></a><var>27.5</var>    Subd. 2. <b>Deferred annuity computation; augmentation.</b> (a) The deferred annuity <br/>
<a id="pl.27.6"></a><var>27.6</var>accruing under subdivision 1, or under sections 
         <statute_ref>353.34, subdivision 3</statute_ref>, and 
         <statute_ref>353.68, <br/>
<a id="pl.27.7"></a><var>27.7</var>subdivision 4
         </statute_ref>, must be computed on the basis of allowable service prior to the termination <br/>
<a id="pl.27.8"></a><var>27.8</var>of public service and augmented as provided in this paragraph subdivision. The required <br/>
<a id="pl.27.9"></a><var>27.9</var>reserves applicable to a deferred annuity, or to any deferred segment of an annuity must <br/>
<a id="pl.27.10"></a><var>27.10</var>be determined as of the first day of the month following the month in which the former <br/>
<a id="pl.27.11"></a><var>27.11</var>member ceased to be a public employee, or July 1, 1971, whichever is later. These<br/>
<a id="pl.27.12"></a><var>27.12</var>(b) For a person who became a public employee before July 1, 2006, whose period <br/>
<a id="pl.27.13"></a><var>27.13</var>of deferral began after June 30, 1971, and who terminated public employment before <br/>
<a id="pl.27.14"></a><var>27.14</var>January 1, 2012, the required reserves of the deferred annuity must be augmented at <br/>
<a id="pl.27.15"></a><var>27.15</var>the following applicable rate of  or rates:<br/>
<a id="pl.27.16"></a><var>27.16</var>(1) five percent annually compounded annually annual compound interest until <br/>
<a id="pl.27.17"></a><var>27.17</var>January 1, 1981, and at the rate of;<br/>
<a id="pl.27.18"></a><var>27.18</var>(2)  three percent thereafter annual compound interest after January 1, 1981, or until <br/>
<a id="pl.27.19"></a><var>27.19</var>the earlier of December 31, 2011, or after the date of the termination of public service or <br/>
<a id="pl.27.20"></a><var>27.20</var>the termination of membership, whichever is later, until January 1 of the year following <br/>
<a id="pl.27.21"></a><var>27.21</var>the year in which the former member attains age 55 and;<br/>
<a id="pl.27.22"></a><var>27.22</var>(3) five percent annual compound interest from that date to the effective date of <br/>
<a id="pl.27.23"></a><var>27.23</var>retirement, the rate is five percent compounded annually if the employee became an <br/>
<a id="pl.27.24"></a><var>27.24</var>employee before July 1, 2006, and at 2.5 percent compounded annually if the employee <br/>
<a id="pl.27.25"></a><var>27.25</var>becomes an January 1 of the year following the year in which the former member attains <br/>
<a id="pl.27.26"></a><var>27.26</var>age 55, or until December 31, 2011, whichever is earlier; and<br/>
<a id="pl.27.27"></a><var>27.27</var>(4) one percent annual compound interest from January 1, 2012.<br/>
<a id="pl.27.28"></a><var>27.28</var>(c) For a person who became a public employee after June 30, 2006, and who <br/>
<a id="pl.27.29"></a><var>27.29</var>terminated public employment before January 1, 2012, the required reserves of the <br/>
<a id="pl.27.30"></a><var>27.30</var>deferred annuity must be augmented at 2.5 percent annual compound interest from the date <br/>
<a id="pl.27.31"></a><var>27.31</var>of termination of public service or termination of membership, whichever is earlier, until <br/>
<a id="pl.27.32"></a><var>27.32</var>December 31, 2011, and one percent annual compound interest after December 31, 2011.<br/>
<a id="pl.27.33"></a><var>27.33</var>(d) For a person who terminates public employment after December 31, 2011, the <br/>
<a id="pl.27.34"></a><var>27.34</var>required reserves of the deferred annuity must not be augmented.<br/>
<a id="pl.28.1"></a><var>28.1</var>(e) If a person has more than one period of uninterrupted service, the required <br/>
<a id="pl.28.2"></a><var>28.2</var>reserves related to each period must be augmented as specified in this paragraph. The sum <br/>
<a id="pl.28.3"></a><var>28.3</var>of the augmented required reserves is the present value of the annuity. Uninterrupted <br/>
<a id="pl.28.4"></a><var>28.4</var>service for the purpose of this subdivision means periods of covered employment during <br/>
<a id="pl.28.5"></a><var>28.5</var>which the employee has not been separated from public service for more than two years. <br/>
<a id="pl.28.6"></a><var>28.6</var>If a person repays a refund, the restored service must be considered as continuous with the <br/>
<a id="pl.28.7"></a><var>28.7</var>next period of service for which the employee has credit with this association. This section <br/>
<a id="pl.28.8"></a><var>28.8</var>must not reduce the annuity otherwise payable under this chapter. This paragraph applies <br/>
<a id="pl.28.9"></a><var>28.9</var>to individuals who become deferred annuitants on or after July 1, 1971. For a member <br/>
<a id="pl.28.10"></a><var>28.10</var>who became a deferred annuitant before July 1, 1971, the paragraph applies from July 1, <br/>
<a id="pl.28.11"></a><var>28.11</var>1971, if the former active member applies for an annuity after July 1, 1973. <br/>
<a id="pl.28.12"></a><var>28.12</var>(b) (f) The retirement annuity or disability benefit of, or the survivor benefit payable <br/>
<a id="pl.28.13"></a><var>28.13</var>on behalf of, a former member who terminated service before July 1, 1997, or the <br/>
<a id="pl.28.14"></a><var>28.14</var>survivor benefit payable on behalf of a basic or police and fire member who was receiving <br/>
<a id="pl.28.15"></a><var>28.15</var>disability benefits before July 1, 1997, which is first payable after June 30, 1997, must <br/>
<a id="pl.28.16"></a><var>28.16</var>be increased on an actuarial equivalent basis to reflect the change in the postretirement <br/>
<a id="pl.28.17"></a><var>28.17</var>interest rate actuarial assumption under section 
         <statute_ref>356.215, subdivision 8</statute_ref>, from five percent <br/>
<a id="pl.28.18"></a><var>28.18</var>to six percent under a calculation procedure and tables adopted by the board and approved <br/>
<a id="pl.28.19"></a><var>28.19</var>by the actuary retained under section 
         <statute_ref>356.214</statute_ref>. <br/>
<a id="pl.28.20"></a><var>28.20</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.0.42.0"></a><a id="pl.28.21"></a><var>28.21</var>    Sec. 42. Minnesota Statutes 2008, section 353E.04, subdivision 1, is amended to read:<br/>
<a id="pl.28.22"></a><var>28.22</var>    Subdivision 1. <b>Eligibility requirements.</b> After termination of public employment, <br/>
<a id="pl.28.23"></a><var>28.23</var>an employee covered under section 
         <statute_ref>353E.02</statute_ref> who has attained the age of at least 55 years <br/>
<a id="pl.28.24"></a><var>28.24</var>and has credit for not less than three years of coverage who is vested under section <br/>
<a id="pl.28.25"></a><var>28.25</var>353.01, subdivision 47, in the local government correctional service plan is entitled, upon <br/>
<a id="pl.28.26"></a><var>28.26</var>application, to a normal retirement annuity. Instead of a normal retirement annuity, a <br/>
<a id="pl.28.27"></a><var>28.27</var>retiring employee may elect to receive the optional annuity provided in section 
         <statute_ref>353.30, <br/>
<a id="pl.28.28"></a><var>28.28</var>subdivision 3
         </statute_ref>.  <br/>
<a id="pl.28.29"></a><var>28.29</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.0.43.0"></a><a id="pl.28.30"></a><var>28.30</var>    Sec. 43. Minnesota Statutes 2008, section 353E.04, subdivision 4, is amended to read:<br/>
<a id="pl.28.31"></a><var>28.31</var>    Subd. 4. <b>Early retirement.</b> An employee covered under section 
         <statute_ref>353E.02</statute_ref> who has <br/>
<a id="pl.28.32"></a><var>28.32</var>attained the age of at least 50 years and has credit for not less than three years of coverage <br/>
<a id="pl.28.33"></a><var>28.33</var>who is vested under section 353.01, subdivision 47, in the local government correctional <br/>
<a id="pl.29.1"></a><var>29.1</var>service plan is entitled, upon application, to a reduced retirement annuity equal to the <br/>
<a id="pl.29.2"></a><var>29.2</var>annuity calculated under subdivision 3, reduced so that the reduced annuity is the actuarial <br/>
<a id="pl.29.3"></a><var>29.3</var>equivalent of the annuity that would be payable if the employee deferred receipt of the <br/>
<a id="pl.29.4"></a><var>29.4</var>annuity from the day the annuity begins to accrue until age 55.  <br/>
<a id="pl.29.5"></a><var>29.5</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.0.44.0"></a><a id="pl.29.6"></a><var>29.6</var>    Sec. 44. Minnesota Statutes 2008, section 353E.07, subdivision 1, is amended to read:<br/>
<a id="pl.29.7"></a><var>29.7</var>    Subdivision 1. <b>Member at least age 50.</b> If a member or former member of the local <br/>
<a id="pl.29.8"></a><var>29.8</var>government correctional service retirement plan who has attained the age of at least 50 <br/>
<a id="pl.29.9"></a><var>29.9</var>years and has credit for not less than three years of allowable service who is vested under <br/>
<a id="pl.29.10"></a><var>29.10</var>section 353.01, subdivision 47, dies before the annuity or disability benefit has become <br/>
<a id="pl.29.11"></a><var>29.11</var>payable, notwithstanding any designation of beneficiary to the contrary, the surviving <br/>
<a id="pl.29.12"></a><var>29.12</var>spouse may elect to receive, in lieu of a refund with interest provided in section 
         <statute_ref>353.32, <br/>
<a id="pl.29.13"></a><var>29.13</var>subdivision 1
         </statute_ref>, a surviving spouse annuity equal to the 100 percent joint and survivor <br/>
<a id="pl.29.14"></a><var>29.14</var>annuity for which the member could have qualified had the member terminated service <br/>
<a id="pl.29.15"></a><var>29.15</var>on the date of death. <br/>
<a id="pl.29.16"></a><var>29.16</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.0.45.0"></a><a id="pl.29.17"></a><var>29.17</var>    Sec. 45. Minnesota Statutes 2008, section 353E.07, subdivision 2, is amended to read:<br/>
<a id="pl.29.18"></a><var>29.18</var>    Subd. 2. <b>Member not yet age 50.</b> If the member was under age 50, dies, and had <br/>
<a id="pl.29.19"></a><var>29.19</var>credit for not less than three years of allowable service was vested under section 353.01, <br/>
<a id="pl.29.20"></a><var>29.20</var>subdivision 47, on the date of death but did not yet qualify for retirement, the surviving <br/>
<a id="pl.29.21"></a><var>29.21</var>spouse may elect to receive a 100 percent joint and survivor annuity based on the age <br/>
<a id="pl.29.22"></a><var>29.22</var>of the employee and the surviving spouse at the time of death. The annuity is payable <br/>
<a id="pl.29.23"></a><var>29.23</var>using the early retirement reduction under section 
         <statute_ref>353E.04, subdivision 4</statute_ref>, to age 50 and <br/>
<a id="pl.29.24"></a><var>29.24</var>one-half the early retirement reduction from age 50 to the age payment begins. Sections <br/>
<statute_ref><a id="pl.29.25"></a><var>29.25</var>353.34, subdivision 3
         </statute_ref>, and 
         <statute_ref>353.71, subdivision 2</statute_ref>, apply to a deferred annuity or surviving <br/>
<a id="pl.29.26"></a><var>29.26</var>spouse benefit payable under this subdivision. <br/>
<a id="pl.29.27"></a><var>29.27</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.0.46.0"></a><a id="pl.29.28"></a><var>29.28</var>    Sec. 46. Minnesota Statutes 2008, section 353F.03, is amended to read:<br/>
<a id="pl.29.29"></a><var>29.29</var><b>353F.03 VESTING RULE FOR CERTAIN EMPLOYEES.</b><br/>
<a id="pl.29.30"></a><var>29.30</var>Notwithstanding any provision of chapter 353 to the contrary, a terminated medical <br/>
<a id="pl.29.31"></a><var>29.31</var>facility or other public employing unit employee is eligible to receive a retirement annuity <br/>
<a id="pl.30.1"></a><var>30.1</var>under section 
         <statute_ref>353.29</statute_ref> of the edition of Minnesota Statutes published in the year before the <br/>
<a id="pl.30.2"></a><var>30.2</var>year in which the privatization occurred, without regard to the requirement for three years <br/>
<a id="pl.30.3"></a><var>30.3</var>of allowable service specified in section 353.01, subdivision 47.  <br/>
<a id="pl.30.4"></a><var>30.4</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.0.47.0"></a><a id="pl.30.5"></a><var>30.5</var>    Sec. 47. Minnesota Statutes 2009 Supplement, section 354.42, subdivision 2, is <br/>
<a id="pl.30.6"></a><var>30.6</var>amended to read:<br/>
<a id="pl.30.7"></a><var>30.7</var>    Subd. 2. <b>Employee contribution.</b> (a) For a basic member, the employee <br/>
<a id="pl.30.8"></a><var>30.8</var>contribution to the fund is 9.0 percent the following percentage of the member's salary.:<br/>
<table>
<col width="50px"/>
<col width="2.2"/>
<col width="18.799999999999997"/>
<col width="10.8"/>
<tr>
<td><a id="pl.30.9"></a><var>30.9</var><br/>
</td>
<td></td>
<td>before July 1, 2011<br/>
</td>
<td>9.0 percent<br/>
</td>
</tr>
<tr>
<td><a id="pl.30.10"></a><var>30.10</var><br/>
</td>
<td></td>
<td>from July 1, 2011, until June 30, 2012<br/>
</td>
<td>9.5 percent<br/>
</td>
</tr>
<tr>
<td><a id="pl.30.11"></a><var>30.11</var><br/>
</td>
<td></td>
<td>from July 1, 2012, until June 30, 2013<br/>
</td>
<td>10.0 percent<br/>
</td>
</tr>
<tr>
<td><a id="pl.30.12"></a><var>30.12</var><br/>
</td>
<td></td>
<td>from July 1, 2013, until June 30, 2014<br/>
</td>
<td>10.5 percent<br/>
</td>
</tr>
<tr>
<td><a id="pl.30.13"></a><var>30.13</var><br/>
</td>
<td></td>
<td>after June 30, 2014<br/>
</td>
<td>11.0 percent<br/>
</td>
</tr>
</table><a id="pl.30.14"></a><var>30.14</var>(b) For a coordinated member, the employee contribution is 5.5 percent  the following <br/>
<a id="pl.30.15"></a><var>30.15</var>percentage of the member's salary.:<br/>
<table>
<col width="50px"/>
<col width="2.3000000000000003"/>
<col width="18.700000000000003"/>
<col width="10.8"/>
<tr>
<td><a id="pl.30.16"></a><var>30.16</var><br/>
</td>
<td></td>
<td>before July 1, 2011<br/>
</td>
<td>5.5 percent<br/>
</td>
</tr>
<tr>
<td><a id="pl.30.17"></a><var>30.17</var><br/>
</td>
<td></td>
<td>from July 1, 2011, until June 30, 2012<br/>
</td>
<td>6.0 percent<br/>
</td>
</tr>
<tr>
<td><a id="pl.30.18"></a><var>30.18</var><br/>
</td>
<td></td>
<td>from July 1, 2012, until June 30, 2013<br/>
</td>
<td>6.5 percent<br/>
</td>
</tr>
<tr>
<td><a id="pl.30.19"></a><var>30.19</var><br/>
</td>
<td></td>
<td>from July 1, 2013, until June 30, 2014<br/>
</td>
<td>7.0 percent<br/>
</td>
</tr>
<tr>
<td><a id="pl.30.20"></a><var>30.20</var><br/>
</td>
<td></td>
<td>after June 30, 2014<br/>
</td>
<td>7.5 percent<br/>
</td>
</tr>
</table><a id="pl.30.21"></a><var>30.21</var>(c) When an employee contribution rate changes for a fiscal year, the new <br/>
<a id="pl.30.22"></a><var>30.22</var>contribution rate is effective for the entire salary paid for each employer unit with the <br/>
<a id="pl.30.23"></a><var>30.23</var>first payroll cycle reported.<br/>
<a id="pl.30.24"></a><var>30.24</var>(d) After June 30, 2015, if a contribution rate revision is required under subdivisions <br/>
<a id="pl.30.25"></a><var>30.25</var>4a, 4b, and 4c, the employee contributions under paragraphs (a) and (b) must be adjusted <br/>
<a id="pl.30.26"></a><var>30.26</var>accordingly.<br/>
<a id="pl.30.27"></a><var>30.27</var>(b) (e) This contribution must be made by deduction from salary. Where any portion <br/>
<a id="pl.30.28"></a><var>30.28</var>of a member's salary is paid from other than public funds, the member's employee <br/>
<a id="pl.30.29"></a><var>30.29</var>contribution must be based on the entire salary received.<br/>
<a id="pl.30.30"></a><var>30.30</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.0.48.0"></a><a id="pl.30.31"></a><var>30.31</var>    Sec. 48. Minnesota Statutes 2008, section 354.42, subdivision 3, is amended to read:<br/>
<a id="pl.30.32"></a><var>30.32</var>    Subd. 3. <b>Employer.</b> (a) The regular employer contribution to the fund by Special <br/>
<a id="pl.30.33"></a><var>30.33</var>School District No. 1, Minneapolis, after July 1, 2006, and before July 1, 2007, is an <br/>
<a id="pl.30.34"></a><var>30.34</var>amount equal to 5.0 percent of the salary of each of its teachers who is a coordinated <br/>
<a id="pl.31.1"></a><var>31.1</var>member and 9.0 percent of the salary of each of its teachers who is a basic member. After <br/>
<a id="pl.31.2"></a><var>31.2</var>July 1, 2007, the regular employer contribution to the fund by Special School District No. <br/>
<a id="pl.31.3"></a><var>31.3</var>1, Minneapolis, is an amount equal to 5.5 percent the applicable following percentage of <br/>
<a id="pl.31.4"></a><var>31.4</var>salary of each coordinated member and 9.5 percent the applicable following percentage <br/>
<a id="pl.31.5"></a><var>31.5</var>of salary of each basic member.:<br/>
<table>
<col width="50px"/>
<col width="2.9"/>
<col width="27.599999999999998"/>
<col width="3.5999999999999996"/>
<col width="13.200000000000001"/>
<col width="1.1"/>
<col width="14.6"/>
<tr>
<td><a id="pl.31.6"></a><var>31.6</var><br/>
</td>
<td></td>
<td>Period<br/>
</td>
<td colspan="2">Coordinated Member<br/>
</td>
<td colspan="2">Basic Member<br/>
</td>
</tr>
<tr>
<td><a id="pl.31.7"></a><var>31.7</var><br/>
</td>
<td></td>
<td>before July 1, 2011<br/>
</td>
<td></td>
<td>5.5 percent<br/>
</td>
<td></td>
<td>9.5 percent<br/>
</td>
</tr>
<tr>
<td><a id="pl.31.8"></a><var>31.8</var><br/>
</td>
<td></td>
<td>from July 1, 2011, until June 30, 2012<br/>
</td>
<td></td>
<td>6.0 percent<br/>
</td>
<td></td>
<td>10.0 percent<br/>
</td>
</tr>
<tr>
<td><a id="pl.31.9"></a><var>31.9</var><br/>
</td>
<td></td>
<td>from July 1, 2012, until June 30, 2013<br/>
</td>
<td></td>
<td>6.5 percent<br/>
</td>
<td></td>
<td>10.5 percent<br/>
</td>
</tr>
<tr>
<td><a id="pl.31.10"></a><var>31.10</var><br/>
</td>
<td></td>
<td>from July 1, 2013, until June 30, 2014<br/>
</td>
<td></td>
<td>7.0 percent<br/>
</td>
<td></td>
<td>11.0 percent<br/>
</td>
</tr>
<tr>
<td><a id="pl.31.11"></a><var>31.11</var><br/>
</td>
<td></td>
<td>after June 30, 2014<br/>
</td>
<td></td>
<td>7.5 percent<br/>
</td>
<td></td>
<td>11.5 percent<br/>
</td>
</tr>
</table><a id="pl.31.12"></a><var>31.12</var> The additional employer contribution to the fund by Special School District No. 1, <br/>
<a id="pl.31.13"></a><var>31.13</var>Minneapolis, after July 1, 2006, is an amount equal to 3.64 percent of the salary of each <br/>
<a id="pl.31.14"></a><var>31.14</var>teacher who is a coordinated member or is a basic member.<br/>
<a id="pl.31.15"></a><var>31.15</var>(b) The employer contribution to the fund for every other employer is an amount <br/>
<a id="pl.31.16"></a><var>31.16</var>equal to 5.0 percent the applicable following percentage of the salary of each coordinated <br/>
<a id="pl.31.17"></a><var>31.17</var>member and 9.0 percent the applicable following percentage of the salary of each basic <br/>
<a id="pl.31.18"></a><var>31.18</var>member before July 1, 2007, and 5.5 percent of the salary of each coordinated member <br/>
<a id="pl.31.19"></a><var>31.19</var>and 9.5 percent of the salary of each basic member after June 30, 2007.:<br/>
<table>
<col width="50px"/>
<col width="2.9"/>
<col width="27.599999999999998"/>
<col width="3.5999999999999996"/>
<col width="13.200000000000001"/>
<col width="1.1"/>
<col width="14.6"/>
<tr>
<td><a id="pl.31.20"></a><var>31.20</var><br/>
</td>
<td></td>
<td>Period<br/>
</td>
<td colspan="2">Coordinated Member<br/>
</td>
<td colspan="2">Basic Member<br/>
</td>
</tr>
<tr>
<td><a id="pl.31.21"></a><var>31.21</var><br/>
</td>
<td></td>
<td>before July 1, 2011<br/>
</td>
<td></td>
<td>5.5 percent<br/>
</td>
<td></td>
<td>9.5 percent<br/>
</td>
</tr>
<tr>
<td><a id="pl.31.22"></a><var>31.22</var><br/>
</td>
<td></td>
<td>from July 1, 2011, until June 30, 2012<br/>
</td>
<td></td>
<td>6.0 percent<br/>
</td>
<td></td>
<td>10.0 percent<br/>
</td>
</tr>
<tr>
<td><a id="pl.31.23"></a><var>31.23</var><br/>
</td>
<td></td>
<td>from July 1, 2012, until June 30, 2013<br/>
</td>
<td></td>
<td>6.5 percent<br/>
</td>
<td></td>
<td>10.5 percent<br/>
</td>
</tr>
<tr>
<td><a id="pl.31.24"></a><var>31.24</var><br/>
</td>
<td></td>
<td>from July 1, 2013, until June 30, 2014<br/>
</td>
<td></td>
<td>7.0 percent<br/>
</td>
<td></td>
<td>11.0 percent<br/>
</td>
</tr>
<tr>
<td><a id="pl.31.25"></a><var>31.25</var><br/>
</td>
<td></td>
<td>after June 30, 2014<br/>
</td>
<td></td>
<td>7.5 percent<br/>
</td>
<td></td>
<td>11.5 percent<br/>
</td>
</tr>
</table><a id="pl.31.26"></a><var>31.26</var>(c) When an employer contribution rate changes for a fiscal year, the new <br/>
<a id="pl.31.27"></a><var>31.27</var>contribution rate is effective for the entire salary paid for each employer unit with the <br/>
<a id="pl.31.28"></a><var>31.28</var>first payroll cycle reported.<br/>
<a id="pl.31.29"></a><var>31.29</var>(d) After June 30, 2015, if a contribution rate revision is made under subdivisions <br/>
<a id="pl.31.30"></a><var>31.30</var>4a, 4b, and 4c, the employer contributions under paragraphs (a) and (b) must be adjusted <br/>
<a id="pl.31.31"></a><var>31.31</var>accordingly.<br/>
<a id="pl.31.32"></a><var>31.32</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.0.49.0"></a><a id="pl.31.33"></a><var>31.33</var>    Sec. 49. Minnesota Statutes 2008, section 354.42, is amended by adding a subdivision <br/>
<a id="pl.31.34"></a><var>31.34</var>to read:<br/>
<a id="pl.31.35"></a><var>31.35</var>    Subd. 4a. <b>Determination.</b> (a) For purposes of this section, a contribution <br/>
<a id="pl.31.36"></a><var>31.36</var>sufficiency exists if the total of the employee contributions, the employer contributions, <br/>
<a id="pl.32.1"></a><var>32.1</var>and any additional employer contributions, if applicable, exceeds the total of the normal <br/>
<a id="pl.32.2"></a><var>32.2</var>cost, the administrative expenses, and the amortization contribution of the retirement plan <br/>
<a id="pl.32.3"></a><var>32.3</var>as reported in the most recent actuarial valuation of the retirement plan prepared by the <br/>
<a id="pl.32.4"></a><var>32.4</var>approved actuary retained under section 356.214 and prepared under section 356.215 <br/>
<a id="pl.32.5"></a><var>32.5</var>and the standards for actuarial work of the Legislative Commission on Pensions and <br/>
<a id="pl.32.6"></a><var>32.6</var>Retirement.<br/>
<a id="pl.32.7"></a><var>32.7</var>(b) For purposes of this section, a contribution deficiency exists if the total of <br/>
<a id="pl.32.8"></a><var>32.8</var>the employee contributions, the employer contributions, and any additional employer <br/>
<a id="pl.32.9"></a><var>32.9</var>contributions are less than the total of the normal cost, the administrative expenses, and <br/>
<a id="pl.32.10"></a><var>32.10</var>the amortization contribution of the retirement plan as reported in the most recent actuarial <br/>
<a id="pl.32.11"></a><var>32.11</var>valuation of the retirement plan prepared by the approved actuary retained under section <br/>
<a id="pl.32.12"></a><var>32.12</var>356.214 and prepared under section 356.215 and the standards for actuarial work of the <br/>
<a id="pl.32.13"></a><var>32.13</var>Legislative Commission on Pensions and Retirement.<br/>
<a id="pl.32.14"></a><var>32.14</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.0.50.0"></a><a id="pl.32.15"></a><var>32.15</var>    Sec. 50. Minnesota Statutes 2008, section 354.42, is amended by adding a subdivision <br/>
<a id="pl.32.16"></a><var>32.16</var>to read:<br/>
<a id="pl.32.17"></a><var>32.17</var>    Subd. 4b. <b>Contribution rate revision.</b> Notwithstanding the contribution rate <br/>
<a id="pl.32.18"></a><var>32.18</var>provisions under subdivisions 2 and 3, the employee and employer contribution rates <br/>
<a id="pl.32.19"></a><var>32.19</var>may be adjusted as follows:<br/>
<a id="pl.32.20"></a><var>32.20</var>(1) if, after June 30, 2015, the regular actuarial valuation of the plan under section <br/>
<a id="pl.32.21"></a><var>32.21</var>356.215 indicates that there is a contribution sufficiency under subdivision 4a equal to <br/>
<a id="pl.32.22"></a><var>32.22</var>or greater than one percent of covered payroll and the sufficiency has existed for at least <br/>
<a id="pl.32.23"></a><var>32.23</var>two consecutive years, the employee and employer contribution rates for the plan may <br/>
<a id="pl.32.24"></a><var>32.24</var>each be decreased to a level such that the sufficiency equals no more than one percent of <br/>
<a id="pl.32.25"></a><var>32.25</var>covered payroll based on the most recent actuarial valuation; or<br/>
<a id="pl.32.26"></a><var>32.26</var>(2) if, after June 30, 2015, the regular valuation of the plan under section 356.215 <br/>
<a id="pl.32.27"></a><var>32.27</var>indicates that there is a deficiency equal to or greater than 0.25 percent of covered payroll <br/>
<a id="pl.32.28"></a><var>32.28</var>and the deficiency has existed for at least two consecutive years, the employee and <br/>
<a id="pl.32.29"></a><var>32.29</var>employer contribution rates for the applicable plan may each be increased by:<br/>
<a id="pl.32.30"></a><var>32.30</var>(i) 0.25 percent if the deficiency is less than 2.00 percent of covered payroll;<br/>
<a id="pl.32.31"></a><var>32.31</var>(ii) 0.5 percent if the deficiency is equal to or greater than 2.00 percent of covered <br/>
<a id="pl.32.32"></a><var>32.32</var>payroll and less than or equal to four percent; and<br/>
<a id="pl.32.33"></a><var>32.33</var>(iii) 0.75 percent if the deficiency is greater than four percent.<br/>
<a id="pl.32.34"></a><var>32.34</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.0.51.0"></a><a id="pl.33.1"></a><var>33.1</var>    Sec. 51. Minnesota Statutes 2008, section 354.42, is amended by adding a subdivision <br/>
<a id="pl.33.2"></a><var>33.2</var>to read:<br/>
<a id="pl.33.3"></a><var>33.3</var>    Subd. 4c. <b>Contribution sufficiency measures.</b> (a) A contribution sufficiency of up <br/>
<a id="pl.33.4"></a><var>33.4</var>to one percent of covered payroll must be held in reserve to be used to offset any future <br/>
<a id="pl.33.5"></a><var>33.5</var>actuarially required contributions that are more than the total combined employee and <br/>
<a id="pl.33.6"></a><var>33.6</var>employer contributions being collected.<br/>
<a id="pl.33.7"></a><var>33.7</var>(b) Before any reduction in contributions to eliminate a sufficiency in excess of one <br/>
<a id="pl.33.8"></a><var>33.8</var>percent of covered pay may be recommended, the executive director must review any <br/>
<a id="pl.33.9"></a><var>33.9</var>need for a change in actuarial assumptions, as recommended by the actuary retained <br/>
<a id="pl.33.10"></a><var>33.10</var>under section 356.214 in the most recent experience study of the retirement plan, that <br/>
<a id="pl.33.11"></a><var>33.11</var>may result in an increase in the actuarially required contribution and must report to the <br/>
<a id="pl.33.12"></a><var>33.12</var>Legislative Commission on Pensions and Retirement any recommendation by the board <br/>
<a id="pl.33.13"></a><var>33.13</var>to use the sufficiency exceeding one percent of covered payroll to offset the impact of <br/>
<a id="pl.33.14"></a><var>33.14</var>an actuarial assumption change recommended by the actuary retained under section <br/>
<a id="pl.33.15"></a><var>33.15</var>356.214, subdivision 1, and reviewed by the actuary retained by the commission under <br/>
<a id="pl.33.16"></a><var>33.16</var>section 356.214, subdivision 4.<br/>
<a id="pl.33.17"></a><var>33.17</var>(c) A contribution sufficiency in excess of one percent of covered pay must not be <br/>
<a id="pl.33.18"></a><var>33.18</var>used to increase benefits, and a benefit increase must not be proposed that would initiate <br/>
<a id="pl.33.19"></a><var>33.19</var>an automatic adjustment under this section to increase contributions. A proposed benefit <br/>
<a id="pl.33.20"></a><var>33.20</var>improvement must include a recommendation, prepared by the actuary retained under <br/>
<a id="pl.33.21"></a><var>33.21</var>section 356.214, subdivision 1, and reviewed by the actuary retained by the Legislative <br/>
<a id="pl.33.22"></a><var>33.22</var>Commission on Pensions and Retirement, as provided under section 356.214, subdivision <br/>
<a id="pl.33.23"></a><var>33.23</var>4, on the manner in which the benefit modification is to be funded.<br/>
<a id="pl.33.24"></a><var>33.24</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.0.52.0"></a><a id="pl.33.25"></a><var>33.25</var>    Sec. 52. Minnesota Statutes 2008, section 354.42, is amended by adding a subdivision <br/>
<a id="pl.33.26"></a><var>33.26</var>to read:<br/>
<a id="pl.33.27"></a><var>33.27</var>    Subd. 4d. <b>Reporting; commission review.</b> A contribution rate increase or decrease <br/>
<a id="pl.33.28"></a><var>33.28</var>under subdivision 4b, as determined by the executive director of the Teachers Retirement <br/>
<a id="pl.33.29"></a><var>33.29</var>Association, must be reported to the chair and the executive director of the Legislative <br/>
<a id="pl.33.30"></a><var>33.30</var>Commission on Pensions and Retirement on or before the next February 1 and, if the <br/>
<a id="pl.33.31"></a><var>33.31</var>Legislative Commission on Pensions and Retirement does not recommend against the rate <br/>
<a id="pl.33.32"></a><var>33.32</var>change or does not recommend a modification in the rate change, is effective on the next <br/>
<a id="pl.33.33"></a><var>33.33</var>July 1 following the determination by the executive director that a contribution deficiency <br/>
<a id="pl.33.34"></a><var>33.34</var>or sufficiency exists based on the most recent actuarial valuation under section 356.215.<br/>
<a id="pl.34.1"></a><var>34.1</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.0.53.0"></a><a id="pl.34.2"></a><var>34.2</var>    Sec. 53. Minnesota Statutes 2009 Supplement, section 354.47, subdivision 1, is <br/>
<a id="pl.34.3"></a><var>34.3</var>amended to read:<br/>
<a id="pl.34.4"></a><var>34.4</var>    Subdivision 1. <b>Death before retirement.</b> (a) If a member dies before retirement <br/>
<a id="pl.34.5"></a><var>34.5</var>and is covered under section 
         <statute_ref>354.44, subdivision 2</statute_ref>, and neither an optional annuity, nor a <br/>
<a id="pl.34.6"></a><var>34.6</var>reversionary annuity, nor a benefit under section 
         <statute_ref>354.46, subdivision 1</statute_ref>, is payable to the <br/>
<a id="pl.34.7"></a><var>34.7</var>survivors if the member was a basic member, then the surviving spouse, or if there is no <br/>
<a id="pl.34.8"></a><var>34.8</var>surviving spouse, the designated beneficiary is entitled to an amount equal to the member's <br/>
<a id="pl.34.9"></a><var>34.9</var>accumulated deductions with interest credited to the account of the member to the date of <br/>
<a id="pl.34.10"></a><var>34.10</var>death of the member. If the designated beneficiary is a minor, interest must be credited to <br/>
<a id="pl.34.11"></a><var>34.11</var>the date the beneficiary reaches legal age, or the date of receipt, whichever is earlier. <br/>
<a id="pl.34.12"></a><var>34.12</var>(b) If a member dies before retirement and is covered under section 
         <statute_ref>354.44, <br/>
<a id="pl.34.13"></a><var>34.13</var>subdivision 6
         </statute_ref>, and neither an optional annuity, nor reversionary annuity, nor the benefit <br/>
<a id="pl.34.14"></a><var>34.14</var>described in section 
         <statute_ref>354.46, subdivision 1</statute_ref>, is payable to the survivors if the member <br/>
<a id="pl.34.15"></a><var>34.15</var>was a basic member, then the surviving spouse, or if there is no surviving spouse, then <br/>
<a id="pl.34.16"></a><var>34.16</var>the designated beneficiary is entitled to an amount equal to the member's accumulated <br/>
<a id="pl.34.17"></a><var>34.17</var>deductions credited to the account of the member as of June 30, 1957, and from July 1, <br/>
<a id="pl.34.18"></a><var>34.18</var>1957, to the date of death of the member, the member's accumulated deductions plus six <br/>
<a id="pl.34.19"></a><var>34.19</var>percent interest compounded annually. a refund equal to the accumulated deductions <br/>
<a id="pl.34.20"></a><var>34.20</var>credited to the member's account plus interest compounded annually until the member's <br/>
<a id="pl.34.21"></a><var>34.21</var>date of death using the following interest rates:<br/>
<a id="pl.34.22"></a><var>34.22</var>(1) before July 1, 1957, no interest accrues;<br/>
<a id="pl.34.23"></a><var>34.23</var>(2) July 1, 1957, to June 30, 2011, six percent; and<br/>
<a id="pl.34.24"></a><var>34.24</var>(3) after June 30, 2011, four percent.<br/>
<a id="pl.34.25"></a><var>34.25</var>(c) If the designated beneficiary under paragraph (b) is a minor, any interest credited <br/>
<a id="pl.34.26"></a><var>34.26</var>under that paragraph must be credited to the date the beneficiary reaches legal age, or <br/>
<a id="pl.34.27"></a><var>34.27</var>the date of receipt, whichever is earlier.<br/>
<a id="pl.34.28"></a><var>34.28</var>(d) The amount of any refund payable under this subdivision must be reduced by <br/>
<a id="pl.34.29"></a><var>34.29</var>any permanent disability payment under section 
         <statute_ref>354.48</statute_ref> received by the member.<br/>
<a id="pl.34.30"></a><var>34.30</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.0.54.0"></a><a id="pl.34.31"></a><var>34.31</var>    Sec. 54. Minnesota Statutes 2009 Supplement, section 354.49, subdivision 2, is <br/>
<a id="pl.34.32"></a><var>34.32</var>amended to read:<br/>
<a id="pl.34.33"></a><var>34.33</var>    Subd. 2. <b>Calculation.</b> (a) Except as provided in section 
         <statute_ref>354.44, subdivision 1</statute_ref>, <br/>
<a id="pl.34.34"></a><var>34.34</var>any person who ceases to be a member by reason of termination of teaching service, is <br/>
<a id="pl.35.1"></a><var>35.1</var>entitled to receive a refund in an amount equal to the accumulated deductions credited <br/>
<a id="pl.35.2"></a><var>35.2</var>to the account as of June 30, 1957, and after July 1, 1957, the accumulated deductions <br/>
<a id="pl.35.3"></a><var>35.3</var>with interest at the rate of six percent per annum compounded annually. plus interest <br/>
<a id="pl.35.4"></a><var>35.4</var>compounded annually using the following interest rates:<br/>
<a id="pl.35.5"></a><var>35.5</var>(1) before July 1, 1957, no interest accrues;<br/>
<a id="pl.35.6"></a><var>35.6</var>(2) July 1, 1957, to June 30, 2011, six percent; and<br/>
<a id="pl.35.7"></a><var>35.7</var>(3) after June 30, 2011, four percent.<br/>
<a id="pl.35.8"></a><var>35.8</var>For the purpose of this subdivision, interest must be computed on fiscal year end <br/>
<a id="pl.35.9"></a><var>35.9</var>balances to the first day of the month in which the refund is issued. <br/>
<a id="pl.35.10"></a><var>35.10</var>(b) If the person has received permanent disability payments under section 
         <statute_ref>354.48</statute_ref>, <br/>
<a id="pl.35.11"></a><var>35.11</var>the refund amount must be reduced by the amount of those payments.<br/>
<a id="pl.35.12"></a><var>35.12</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.0.55.0"></a><a id="pl.35.13"></a><var>35.13</var>    Sec. 55. Minnesota Statutes 2009 Supplement, section 354.55, subdivision 11, is <br/>
<a id="pl.35.14"></a><var>35.14</var>amended to read:<br/>
<a id="pl.35.15"></a><var>35.15</var>    Subd. 11. <b>Deferred annuity; augmentation.</b> (a) Any person covered under section <br/>
<statute_ref><a id="pl.35.16"></a><var>35.16</var>354.44, subdivision 6
         </statute_ref>, who ceases to render teaching service, may leave the person's <br/>
<a id="pl.35.17"></a><var>35.17</var>accumulated deductions in the fund for the purpose of receiving a deferred annuity <br/>
<a id="pl.35.18"></a><var>35.18</var>at retirement. <br/>
<a id="pl.35.19"></a><var>35.19</var>(b) The amount of the deferred retirement annuity is determined by section 
         <statute_ref>354.44, <br/>
<a id="pl.35.20"></a><var>35.20</var>subdivision 6
         </statute_ref>, and augmented as provided in this subdivision. The required reserves for <br/>
<a id="pl.35.21"></a><var>35.21</var>the annuity which had accrued when the member ceased to render teaching service must <br/>
<a id="pl.35.22"></a><var>35.22</var>be augmented, as further specified in this subdivision, by the applicable interest rate <br/>
<a id="pl.35.23"></a><var>35.23</var>compounded annually from the first day of the month following the month during which <br/>
<a id="pl.35.24"></a><var>35.24</var>the member ceased to render teaching service to the effective date of retirement.<br/>
<a id="pl.35.25"></a><var>35.25</var>(c) No augmentation is not creditable if the deferral period is less than three months <br/>
<a id="pl.35.26"></a><var>35.26</var>or if deferral commenced before July 1, 1971. <br/>
<a id="pl.35.27"></a><var>35.27</var>(d) For persons who became covered employees before July 1, 2006, with a deferral <br/>
<a id="pl.35.28"></a><var>35.28</var>period commencing after June 30, 1971, the annuity must be augmented using as follows:<br/>
<a id="pl.35.29"></a><var>35.29</var>(1) five percent interest compounded annually until January 1, 1981, and;<br/>
<a id="pl.35.30"></a><var>35.30</var>(2) three percent interest compounded annually thereafter from January 1, 1981, until <br/>
<a id="pl.35.31"></a><var>35.31</var>January 1 of the year following the year in which the deferred annuitant attains age 55.;<br/>
<a id="pl.35.32"></a><var>35.32</var> From that date (3) five percent interest compounded annually from the date <br/>
<a id="pl.35.33"></a><var>35.33</var>established in clause (2) to the effective date of retirement, the rate is five percent <br/>
<a id="pl.35.34"></a><var>35.34</var>compounded annually. or until June 30, 2012, whichever is earlier; and<br/>
<a id="pl.35.35"></a><var>35.35</var>(4) two percent interest compounded annually after June 30, 2012.<br/>
<a id="pl.36.1"></a><var>36.1</var>(e) For persons who become covered employees after June 30, 2006, the interest <br/>
<a id="pl.36.2"></a><var>36.2</var>rate used to augment the deferred annuity is 2.5 percent interest compounded annually <br/>
<a id="pl.36.3"></a><var>36.3</var>until June 30, 2012, or until the effective date of retirement, whichever is earlier, and two <br/>
<a id="pl.36.4"></a><var>36.4</var>percent interest compounded annually after June 30, 2012.<br/>
<a id="pl.36.5"></a><var>36.5</var>(f) If a person has more than one period of uninterrupted service, a separate average <br/>
<a id="pl.36.6"></a><var>36.6</var>salary determined under section 
         <statute_ref>354.44, subdivision 6</statute_ref>, must be used for each period <br/>
<a id="pl.36.7"></a><var>36.7</var>and the required reserves related to each period must be augmented as specified in this <br/>
<a id="pl.36.8"></a><var>36.8</var>subdivision. The sum of the augmented required reserves is the present value of the <br/>
<a id="pl.36.9"></a><var>36.9</var>annuity. For the purposes of this subdivision, "period of uninterrupted service" means a <br/>
<a id="pl.36.10"></a><var>36.10</var>period of covered teaching service during which the member has not been separated from <br/>
<a id="pl.36.11"></a><var>36.11</var>active service for more than one fiscal year.<br/>
<a id="pl.36.12"></a><var>36.12</var>(g) If a person repays a refund, the service restored by the repayment must be <br/>
<a id="pl.36.13"></a><var>36.13</var>considered as continuous with the next period of service for which the person has <br/>
<a id="pl.36.14"></a><var>36.14</var>allowable service credit in the Teachers Retirement Association.<br/>
<a id="pl.36.15"></a><var>36.15</var>(h) If a person does not render teaching service in any one fiscal year or more <br/>
<a id="pl.36.16"></a><var>36.16</var>consecutive fiscal years and then resumes teaching service, the formula percentages used <br/>
<a id="pl.36.17"></a><var>36.17</var>from the date of the resumption of teaching service must be those applicable to new <br/>
<a id="pl.36.18"></a><var>36.18</var>members.<br/>
<a id="pl.36.19"></a><var>36.19</var>(i) The mortality table and interest rate actuarial assumption used to compute the <br/>
<a id="pl.36.20"></a><var>36.20</var>annuity must be the applicable mortality table established by the board under section <br/>
<statute_ref><a id="pl.36.21"></a><var>36.21</var>354.07, subdivision 1
         </statute_ref>, and the interest rate actuarial assumption under section 
         <statute_ref>356.215</statute_ref> in <br/>
<a id="pl.36.22"></a><var>36.22</var>effect when the member retires. <br/>
<a id="pl.36.23"></a><var>36.23</var>(j) In no case may the annuity payable under this subdivision be less than the amount <br/>
<a id="pl.36.24"></a><var>36.24</var>of annuity payable under section 
         <statute_ref>354.44, subdivision 6</statute_ref>. <br/>
<a id="pl.36.25"></a><var>36.25</var>(k) The requirements and provisions for retirement before normal retirement age <br/>
<a id="pl.36.26"></a><var>36.26</var>contained in section 
         <statute_ref>354.44, subdivision 6</statute_ref>, also apply to an employee fulfilling the <br/>
<a id="pl.36.27"></a><var>36.27</var>requirements with a combination of service as provided in section 
         <statute_ref>354.60</statute_ref>. <br/>
<a id="pl.36.28"></a><var>36.28</var>(l) The augmentation provided by this subdivision applies to the benefit provided <br/>
<a id="pl.36.29"></a><var>36.29</var>in section 
         <statute_ref>354.46, subdivision 2</statute_ref>. <br/>
<a id="pl.36.30"></a><var>36.30</var>(m) The augmentation provided by this subdivision does not apply to any period <br/>
<a id="pl.36.31"></a><var>36.31</var>in which a person is on an approved leave of absence from an employer unit covered <br/>
<a id="pl.36.32"></a><var>36.32</var>by the provisions of this chapter.<br/>
<a id="pl.36.33"></a><var>36.33</var>(n) The retirement annuity or disability benefit of, or the survivor benefit payable on <br/>
<a id="pl.36.34"></a><var>36.34</var>behalf of, a former teacher who terminated service before July 1, 1997, which is not first <br/>
<a id="pl.36.35"></a><var>36.35</var>payable until after June 30, 1997, must be increased on an actuarial equivalent basis to <br/>
<a id="pl.36.36"></a><var>36.36</var>reflect the change in the postretirement interest rate actuarial assumption under section <br/>
<statute_ref><a id="pl.37.1"></a><var>37.1</var>356.215, subdivision 8
         </statute_ref>, from five percent to six percent under a calculation procedure and <br/>
<a id="pl.37.2"></a><var>37.2</var>tables adopted by the board as recommended by an approved actuary and approved by the <br/>
<a id="pl.37.3"></a><var>37.3</var>actuary retained under section 
         <statute_ref>356.214</statute_ref>.<br/>
<a id="pl.37.4"></a><var>37.4</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.0.56.0"></a><a id="pl.37.5"></a><var>37.5</var>    Sec. 56. Minnesota Statutes 2008, section 354A.12, subdivision 1, is amended to read:<br/>
<a id="pl.37.6"></a><var>37.6</var>    Subdivision 1.  <b>Employee contributions.</b> (a) The contribution required to be paid <br/>
<a id="pl.37.7"></a><var>37.7</var>by each member of a teachers retirement fund association shall not be less than is the <br/>
<a id="pl.37.8"></a><var>37.8</var>percentage of total salary specified below for the applicable association and program: <br/>
<table>
<col width="50px"/>
<col width="8"/>
<col width="15.700000000000001"/>
<col width="42.800000000000004"/>
<col width="34.300000000000004"/>
<tr>
<td><a id="pl.37.9"></a><var>37.9</var><br/>
</td>
<td></td>
<td colspan="2">Association and Program<br/>
</td>
<td>Percentage of Total Salary<br/>
</td>
</tr>
<tr>
<td><a id="pl.37.10"></a><var>37.10</var><br/>
</td>
<td colspan="3">Duluth Teachers Retirement Fund Association<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.37.11"></a><var>37.11</var><br/>
</td>
<td></td>
<td colspan="2">old law and new law<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.37.12"></a><var>37.12</var><br/>
</td>
<td></td>
<td colspan="2">coordinated programs<br/>
</td>
<td>5.5 percent<br/>
</td>
</tr>
<tr>
<td><a id="pl.37.13"></a><var>37.13</var><br/>
</td>
<td></td>
<td colspan="2">before July 1, 2011<br/>
</td>
<td>5.5 percent<br/>
</td>
</tr>
<tr>
<td><a id="pl.37.14"></a><var>37.14</var><br/>
</td>
<td></td>
<td colspan="2">effective July 1, 2011<br/>
</td>
<td>6.0 percent<br/>
</td>
</tr>
<tr>
<td><a id="pl.37.15"></a><var>37.15</var><br/>
</td>
<td></td>
<td colspan="2">effective July 1, 2012 <br/>
</td>
<td>6.5 percent<br/>
</td>
</tr>
<tr>
<td><a id="pl.37.16"></a><var>37.16</var><br/>
</td>
<td colspan="3">St. Paul Teachers Retirement Fund Association<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.37.17"></a><var>37.17</var><br/>
</td>
<td></td>
<td colspan="2">basic program before July 1, 2010<br/>
</td>
<td>8 percent<br/>
</td>
</tr>
<tr>
<td><a id="pl.37.18"></a><var>37.18</var><br/>
</td>
<td></td>
<td colspan="2">basic program after June 30, 2010<br/>
</td>
<td>8.5 percent<br/>
</td>
</tr>
<tr>
<td><a id="pl.37.19"></a><var>37.19</var><br/>
</td>
<td></td>
<td colspan="2">basic program after June 30, 2011<br/>
</td>
<td>9.0 percent<br/>
</td>
</tr>
<tr>
<td><a id="pl.37.20"></a><var>37.20</var><br/>
</td>
<td></td>
<td colspan="2">coordinated program before July 1, 2010<br/>
</td>
<td>5.5 percent<br/>
</td>
</tr>
<tr>
<td><a id="pl.37.21"></a><var>37.21</var><br/>
</td>
<td></td>
<td colspan="2">coordinated program after June 30, 2010<br/>
</td>
<td>6.0 percent<br/>
</td>
</tr>
<tr>
<td><a id="pl.37.22"></a><var>37.22</var><br/>
</td>
<td></td>
<td colspan="2">coordinated program after June 30, 2011<br/>
</td>
<td>6.5 percent<br/>
</td>
</tr>
</table><a id="pl.37.23"></a><var>37.23</var>(b) Contributions shall be made by deduction from salary and must be remitted <br/>
<a id="pl.37.24"></a><var>37.24</var>directly to the respective teachers retirement fund association at least once each month. <br/>
<a id="pl.37.25"></a><var>37.25</var>(c) When an employee contribution rate changes for a fiscal year, the new <br/>
<a id="pl.37.26"></a><var>37.26</var>contribution rate is effective for the entire salary paid by the employer with the first <br/>
<a id="pl.37.27"></a><var>37.27</var>payroll cycle reported.<br/>
<a id="pl.37.28"></a><var>37.28</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2010.<br/>
<br/>
<a id="bill.0.57.0"></a><a id="pl.37.29"></a><var>37.29</var>    Sec. 57. Minnesota Statutes 2009 Supplement, section 354A.12, subdivision 2a, <br/>
<a id="pl.37.30"></a><var>37.30</var>is amended to read:<br/>
<a id="pl.37.31"></a><var>37.31</var>    Subd. 2a.  <b>Employer regular and additional contributions.</b> (a) The employing <br/>
<a id="pl.37.32"></a><var>37.32</var>units shall make the following employer contributions to teachers retirement fund <br/>
<a id="pl.37.33"></a><var>37.33</var>associations: <br/>
<a id="pl.37.34"></a><var>37.34</var>(1) for any coordinated member of one of the following teachers retirement fund <br/>
<a id="pl.37.35"></a><var>37.35</var>associations in a city of the first class, the employing unit shall make a regular employer <br/>
<a id="pl.38.1"></a><var>38.1</var>contribution to the respective retirement fund association in an amount equal to the <br/>
<a id="pl.38.2"></a><var>38.2</var>designated percentage of the salary of the coordinated member as provided below: <br/>
<table>
<col width="50px"/>
<col width="7.199999999999999"/>
<col width="34.2"/>
<col width="5.8"/>
<col width="17.7"/>
<tr>
<td><a id="pl.38.3"></a><var>38.3</var><br/>
</td>
<td></td>
<td>Duluth Teachers Retirement Fund Association <br/>
</td>
<td></td>
<td>4.50 percent<br/>
</td>
</tr>
<tr>
<td><a id="pl.38.4"></a><var>38.4</var><br/>
</td>
<td></td>
<td>before July 1, 2011<br/>
</td>
<td></td>
<td>5.79 percent<br/>
</td>
</tr>
<tr>
<td><a id="pl.38.5"></a><var>38.5</var><br/>
</td>
<td></td>
<td>effective July 1, 2011<br/>
</td>
<td></td>
<td>6.29 percent<br/>
</td>
</tr>
<tr>
<td><a id="pl.38.6"></a><var>38.6</var><br/>
</td>
<td></td>
<td>effective July 1, 2012<br/>
</td>
<td></td>
<td>6.79 percent<br/>
</td>
</tr>
<tr>
<td><a id="pl.38.7"></a><var>38.7</var><br/>
<a id="pl.38.8"></a><var>38.8</var><br/>
</td>
<td></td>
<td>St. Paul Teachers Retirement Fund Association <br/>
before July 1, 2010<br/>
</td>
<td></td>
<td>4.50 percent<br/>
</td>
</tr>
<tr>
<td><a id="pl.38.9"></a><var>38.9</var><br/>
</td>
<td></td>
<td>after June 30, 2010<br/>
</td>
<td></td>
<td>5.0 percent<br/>
</td>
</tr>
<tr>
<td><a id="pl.38.10"></a><var>38.10</var><br/>
</td>
<td></td>
<td>after June 30, 2011<br/>
</td>
<td></td>
<td>5.5 percent<br/>
</td>
</tr>
<tr>
<td><a id="pl.38.11"></a><var>38.11</var><br/>
</td>
<td></td>
<td>after June 30, 2013<br/>
</td>
<td></td>
<td>6.5 percent<br/>
</td>
</tr>
</table><a id="pl.38.12"></a><var>38.12</var>(2) for any basic member of the St. Paul Teachers Retirement Fund Association, the <br/>
<a id="pl.38.13"></a><var>38.13</var>employing unit shall make a regular employer contribution to the respective retirement <br/>
<a id="pl.38.14"></a><var>38.14</var>fund in an amount equal to 8.00 percent of the salary of the basic member; according to <br/>
<a id="pl.38.15"></a><var>38.15</var>the schedule below: <br/>
<table>
<col width="50px"/>
<col width="6"/>
<col width="19.6"/>
<col width="39.2"/>
<tr>
<td><a id="pl.38.16"></a><var>38.16</var><br/>
</td>
<td></td>
<td>before July 1, 2010<br/>
</td>
<td>8.0 percent of the salary of the basic member<br/>
</td>
</tr>
<tr>
<td><a id="pl.38.17"></a><var>38.17</var><br/>
</td>
<td></td>
<td>before July 1, 2011<br/>
</td>
<td>8.5 percent of the salary of the basic member<br/>
</td>
</tr>
<tr>
<td><a id="pl.38.18"></a><var>38.18</var><br/>
</td>
<td></td>
<td>before July 1, 2012<br/>
</td>
<td>9.0 percent of the salary of the basic member<br/>
</td>
</tr>
<tr>
<td><a id="pl.38.19"></a><var>38.19</var><br/>
</td>
<td></td>
<td>before July 1, 2013<br/>
</td>
<td>9.5 percent of the salary of the basic member<br/>
</td>
</tr>
<tr>
<td><a id="pl.38.20"></a><var>38.20</var><br/>
</td>
<td></td>
<td>before July 1, 2014<br/>
</td>
<td>10.0 percent of the salary of the basic member<br/>
</td>
</tr>
</table><a id="pl.38.21"></a><var>38.21</var>(3) for a basic member of the St. Paul Teachers Retirement Fund Association, the <br/>
<a id="pl.38.22"></a><var>38.22</var>employing unit shall make an additional employer contribution to the respective fund in <br/>
<a id="pl.38.23"></a><var>38.23</var>an amount equal to 3.64 percent of the salary of the basic member;<br/>
<a id="pl.38.24"></a><var>38.24</var>(4) for a coordinated member of a teachers retirement fund association in a city of <br/>
<a id="pl.38.25"></a><var>38.25</var>the first class the St. Paul Teachers Retirement Fund Association, the employing unit shall <br/>
<a id="pl.38.26"></a><var>38.26</var>make an additional employer contribution to the respective fund in an amount equal to the <br/>
<a id="pl.38.27"></a><var>38.27</var>applicable percentage of the coordinated member's salary, as provided below:<br/>
<table>
<col width="50px"/>
<col width="7.5"/>
<col width="22.5"/>
<col width="13.5"/>
<col width="21.5"/>
<tr>
<td><a id="pl.38.28"></a><var>38.28</var><br/>
<a id="pl.38.29"></a><var>38.29</var><br/>
</td>
<td></td>
<td>Duluth Teachers Retirement <br/>
Fund Association<br/>
</td>
<td></td>
<td>1.29 percent<br/>
</td>
</tr>
<tr>
<td><a id="pl.38.30"></a><var>38.30</var><br/>
<a id="pl.38.31"></a><var>38.31</var><br/>
</td>
<td></td>
<td>St. Paul Teachers Retirement <br/>
                  		Fund Association<br/>
</td>
<td></td>
<td>3.84 percent<br/>
</td>
</tr>
</table><a id="pl.38.32"></a><var>38.32</var>(b) The regular and additional employer contributions must be remitted directly to <br/>
<a id="pl.38.33"></a><var>38.33</var>the respective teachers retirement fund association at least once each month. Delinquent <br/>
<a id="pl.38.34"></a><var>38.34</var>amounts are payable with interest under the procedure in subdivision 1a.<br/>
<a id="pl.38.35"></a><var>38.35</var>(c) Payments of regular and additional employer contributions for school district <br/>
<a id="pl.38.36"></a><var>38.36</var>or technical college employees who are paid from normal operating funds must be made <br/>
<a id="pl.38.37"></a><var>38.37</var>from the appropriate fund of the district or technical college. <br/>
<a id="pl.39.1"></a><var>39.1</var>(d) When an employer contribution rate changes for a fiscal year, the new <br/>
<a id="pl.39.2"></a><var>39.2</var>contribution rate is effective for the entire salary paid by the employer with the first <br/>
<a id="pl.39.3"></a><var>39.3</var>payroll cycle reported.<br/>
<a id="pl.39.4"></a><var>39.4</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2010.<br/>
<br/>
<a id="bill.0.58.0"></a><a id="pl.39.5"></a><var>39.5</var>    Sec. 58. Minnesota Statutes 2008, section 354A.12, subdivision 3c, is amended to read:<br/>
<a id="pl.39.6"></a><var>39.6</var>    Subd. 3c. <b>Termination of supplemental contributions and direct matching </b><br/>
<a id="pl.39.7"></a><var>39.7</var><b>and state aid.</b> (a) The supplemental contributions payable to the Minneapolis Teachers <br/>
<a id="pl.39.8"></a><var>39.8</var>Retirement Fund Association by Special School District No. 1 and the city of Minneapolis <br/>
<a id="pl.39.9"></a><var>39.9</var>under section 
         <statute_ref>423A.02, subdivision 3</statute_ref>, must be paid to the Teachers Retirement <br/>
<a id="pl.39.10"></a><var>39.10</var>Association and must continue until the current assets of the fund equal or exceed the <br/>
<a id="pl.39.11"></a><var>39.11</var>actuarial accrued liability of the fund as determined in the most recent actuarial report <br/>
<a id="pl.39.12"></a><var>39.12</var>for the fund by the actuary retained under section 
         <statute_ref>356.214</statute_ref>, or 2037, whichever occurs <br/>
<a id="pl.39.13"></a><var>39.13</var>earlier. The supplemental contributions payable to the St. Paul Teachers Retirement Fund <br/>
<a id="pl.39.14"></a><var>39.14</var>Association by Independent School District No. 625 under section 
         <statute_ref>423A.02, subdivision <br/>
<a id="pl.39.15"></a><var>39.15</var>3
         </statute_ref>, or the direct state aid under subdivision 3a to the St. Paul Teachers Retirement Fund <br/>
<a id="pl.39.16"></a><var>39.16</var>Association terminate at the end of the fiscal year in which the accrued liability funding <br/>
<a id="pl.39.17"></a><var>39.17</var>ratio for that fund, as determined in the most recent actuarial report for that fund by the <br/>
<a id="pl.39.18"></a><var>39.18</var>actuary retained under section 
<statute_ref>356.214</statute_ref>, equals or exceeds the accrued liability funding <br/>
<a id="pl.39.19"></a><var>39.19</var>ratio for the Teachers Retirement Association, as determined in the most recent actuarial <br/>
<a id="pl.39.20"></a><var>39.20</var>report for the Teachers Retirement Association by the actuary retained under section <br/>
<a id="pl.39.21"></a><var>39.21</var><statute_ref>356.214</statute_ref>. must continue until the current assets of the fund equal or exceed the actuarial <br/>
<a id="pl.39.22"></a><var>39.22</var>accrued liability of the fund as determined in the most recent actuarial report for the fund <br/>
<a id="pl.39.23"></a><var>39.23</var>by the actuary retained under section 356.214 or until 2037, whichever occurs earlier. <br/>
<a id="pl.39.24"></a><var>39.24</var>    (b) If the St. Paul Teachers Retirement Fund Association is funded at an amount <br/>
<a id="pl.39.25"></a><var>39.25</var>equal to or greater than the funding ratio applicable to the Teachers Retirement <br/>
<a id="pl.39.26"></a><var>39.26</var>Association, then any future state aid under subdivision 3a is payable to the Teachers <br/>
<a id="pl.39.27"></a><var>39.27</var>Retirement Association.<br/>
<a id="pl.39.28"></a><var>39.28</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2010.<br/>
<br/>
<a id="bill.0.59.0"></a><a id="pl.39.29"></a><var>39.29</var>    Sec. 59. Minnesota Statutes 2008, section 354A.27, subdivision 5, is amended to read:<br/>
<a id="pl.39.30"></a><var>39.30</var>    Subd. 5. <b>Calculation</b><b> </b><b>Eligibility for and payment </b><b>of postretirement adjustments.</b><br/>
<a id="pl.39.31"></a><var>39.31</var>(a) Annually, after June 30, the board of trustees of the Duluth Teachers Retirement Fund <br/>
<a id="pl.39.32"></a><var>39.32</var>Association determines the amount of any postretirement adjustment using the procedures <br/>
<a id="pl.39.33"></a><var>39.33</var>in this subdivision and subdivision 6 or 7, whichever is applicable.<br/>
<a id="pl.40.1"></a><var>40.1</var>(b) Each person who has been receiving an annuity or benefit under the articles <br/>
<a id="pl.40.2"></a><var>40.2</var>of incorporation, bylaws, or under this section for at least 12 months as of the date of <br/>
<a id="pl.40.3"></a><var>40.3</var>the postretirement adjustment shall be eligible for a postretirement adjustment. The <br/>
<a id="pl.40.4"></a><var>40.4</var>postretirement adjustment shall be payable each January 1. The postretirement adjustment <br/>
<a id="pl.40.5"></a><var>40.5</var>shall be equal to two percent of a permanent percentage increase as specified under <br/>
<a id="pl.40.6"></a><var>40.6</var>subdivision 6 or 7, whichever is applicable, applied to the annuity or benefit to which the <br/>
<a id="pl.40.7"></a><var>40.7</var>person is entitled one month prior to the payment of the postretirement adjustment.<br/>
<a id="pl.40.8"></a><var>40.8</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2010.<br/>
<br/>
<a id="bill.0.60.0"></a><a id="pl.40.9"></a><var>40.9</var>    Sec. 60. Minnesota Statutes 2008, section 354A.27, subdivision 6, is amended to read:<br/>
<a id="pl.40.10"></a><var>40.10</var>    Subd. 6. <b>Additional increase</b><b> Calculation of postretirement adjustments; </b><br/>
<a id="pl.40.11"></a><var>40.11</var><b>transitional provision</b><b>.</b> (a) In addition to the postretirement increases granted under <br/>
<a id="pl.40.12"></a><var>40.12</var>subdivision 5, an additional percentage increase must be computed and paid under this <br/>
<a id="pl.40.13"></a><var>40.13</var>subdivision.<br/>
<a id="pl.40.14"></a><var>40.14</var>(b) The board of trustees shall determine the number of annuitants or benefit <br/>
<a id="pl.40.15"></a><var>40.15</var>recipients who have been receiving an annuity or benefit for at least 12 months as of the <br/>
<a id="pl.40.16"></a><var>40.16</var>current June 30. These recipients are entitled to receive the surplus investment earnings <br/>
<a id="pl.40.17"></a><var>40.17</var>additional postretirement increase.<br/>
<a id="pl.40.18"></a><var>40.18</var>(c) Annually, as of each June 30, the board shall determine the five-year annualized <br/>
<a id="pl.40.19"></a><var>40.19</var>rate of return attributable to the assets of the Duluth Teachers Retirement Fund Association <br/>
<a id="pl.40.20"></a><var>40.20</var>under the formula or formulas specified in section 
<statute_ref>11A.04</statute_ref>, clause (11). <br/>
<a id="pl.40.21"></a><var>40.21</var>(d) The board shall determine the amount of excess five-year annualized rate of <br/>
<a id="pl.40.22"></a><var>40.22</var>return over the preretirement interest assumption as specified in section 
<statute_ref>356.215</statute_ref>. <br/>
<a id="pl.40.23"></a><var>40.23</var>(e) The additional percentage increase must be determined by multiplying the <br/>
<a id="pl.40.24"></a><var>40.24</var>quantity one minus the rate of contribution deficiency, as specified in the most recent <br/>
<a id="pl.40.25"></a><var>40.25</var>actuarial report of the actuary retained under section 
<statute_ref>356.214</statute_ref>, times the rate of return <br/>
<a id="pl.40.26"></a><var>40.26</var>excess as determined in paragraph (d).<br/>
<a id="pl.40.27"></a><var>40.27</var>(f) The additional increase is payable to all eligible annuitants or benefit recipients <br/>
<a id="pl.40.28"></a><var>40.28</var>on the following January 1.<br/>
<a id="pl.40.29"></a><var>40.29</var>(a) For purposes of computing postretirement adjustments after the effective date <br/>
<a id="pl.40.30"></a><var>40.30</var>of this section for eligible benefit recipients of the Duluth Teachers Retirement Fund <br/>
<a id="pl.40.31"></a><var>40.31</var>Association, the funding ratio of the plan, as determined by dividing the market value of <br/>
<a id="pl.40.32"></a><var>40.32</var>assets by the actuarial accrued liability as reported in the most recent actuarial valuation <br/>
<a id="pl.40.33"></a><var>40.33</var>prepared under sections 356.214 and 356.215, determines the postretirement increase <br/>
<a id="pl.40.34"></a><var>40.34</var>as follows:<br/>
<table>
<col width="50px"/>
<col width="7.5"/>
<col width="22.5"/>
<col width="21.5"/>
<tr>
<td><a id="pl.41.1"></a><var>41.1</var><br/>
</td>
<td></td>
<td>Funding Ratio<br/>
</td>
<td>Postretirement Increase<br/>
</td>
</tr>
<tr>
<td><a id="pl.41.2"></a><var>41.2</var><br/>
</td>
<td></td>
<td>less than 80 percent<br/>
</td>
<td>0 percent<br/>
</td>
</tr>
<tr>
<td><a id="pl.41.3"></a><var>41.3</var><br/>
<a id="pl.41.4"></a><var>41.4</var><br/>
</td>
<td></td>
<td>at least 80 percent but less than 90 <br/>
percent<br/>
</td>
<td>1 percent<br/>
</td>
</tr>
<tr>
<td><a id="pl.41.5"></a><var>41.5</var><br/>
</td>
<td></td>
<td>at least 90 percent<br/>
</td>
<td>2 percent<br/>
</td>
</tr>
</table><a id="pl.41.6"></a><var>41.6</var>(b) If the funding ratio of the plan based on actuarial value, rather than market value, <br/>
<a id="pl.41.7"></a><var>41.7</var>is at least 90 percent as reported in the most recent actuarial valuation prepared under <br/>
<a id="pl.41.8"></a><var>41.8</var>sections 356.214 and 356.215, this subdivision expires and subsequent postretirement <br/>
<a id="pl.41.9"></a><var>41.9</var>increases must be paid as specified under subdivision 7.<br/>
<a id="pl.41.10"></a><var>41.10</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2010.<br/>
<br/>
<a id="bill.0.61.0"></a><a id="pl.41.11"></a><var>41.11</var>    Sec. 61. Minnesota Statutes 2008, section 354A.27, is amended by adding a <br/>
<a id="pl.41.12"></a><var>41.12</var>subdivision to read:<br/>
<a id="pl.41.13"></a><var>41.13</var>    Subd. 7. <b>Calculation of postretirement adjustments.</b> (a) This subdivision applies <br/>
<a id="pl.41.14"></a><var>41.14</var>if subdivision 6 has expired.<br/>
<a id="pl.41.15"></a><var>41.15</var>(b) A percentage adjustment must be computed and paid under this subdivision to <br/>
<a id="pl.41.16"></a><var>41.16</var>eligible persons under subdivision 5. This adjustment is determined by reference to the <br/>
<a id="pl.41.17"></a><var>41.17</var>Consumer Price Index for urban wage earners and clerical workers all items index as <br/>
<a id="pl.41.18"></a><var>41.18</var>reported by the Bureau of Labor Statistics within the United States Department of Labor <br/>
<a id="pl.41.19"></a><var>41.19</var>each year as part of the determination of annual cost-of-living adjustments to recipients <br/>
<a id="pl.41.20"></a><var>41.20</var>of federal old-age, survivors, and disability insurance. For calculations of cost-of-living <br/>
<a id="pl.41.21"></a><var>41.21</var>adjustments under paragraph (c), the term "average third quarter Consumer Price Index <br/>
<a id="pl.41.22"></a><var>41.22</var>value" means the sum of the monthly index values as initially reported by the Bureau of <br/>
<a id="pl.41.23"></a><var>41.23</var>Labor Statistics for the months of July, August, and September, divided by 3.<br/>
<a id="pl.41.24"></a><var>41.24</var>(c) Before January 1 of each year, the executive director must calculate the amount <br/>
<a id="pl.41.25"></a><var>41.25</var>of the cost-of-living adjustment by dividing the most recent average third quarter index <br/>
<a id="pl.41.26"></a><var>41.26</var>value by the same average third quarter index value from the previous year, subtract one <br/>
<a id="pl.41.27"></a><var>41.27</var>from the resulting quotient, and express the result as a percentage amount, which must be <br/>
<a id="pl.41.28"></a><var>41.28</var>rounded to the nearest one-tenth of one percent.<br/>
<a id="pl.41.29"></a><var>41.29</var>(d) The amount calculated under paragraph (c) is the full cost-of-living adjustment <br/>
<a id="pl.41.30"></a><var>41.30</var>to be applied as a permanent increase to the regular payment of each eligible member <br/>
<a id="pl.41.31"></a><var>41.31</var>on January 1 of the next calendar year. For any eligible member whose effective date <br/>
<a id="pl.41.32"></a><var>41.32</var>of benefit commencement occurred during the calendar year before the cost-of-living <br/>
<a id="pl.41.33"></a><var>41.33</var>adjustment is applied, the full increase amount must be prorated on the basis of whole <br/>
<a id="pl.41.34"></a><var>41.34</var>calendar quarters in benefit payment status in the calendar year prior to the January 1 on <br/>
<a id="pl.41.35"></a><var>41.35</var>which the cost-of-living adjustment is applied, calculated to the third decimal place.<br/>
<a id="pl.42.1"></a><var>42.1</var>(e) The adjustment must not be less than zero nor greater than five percent.<br/>
<a id="pl.42.2"></a><var>42.2</var>(f) If the funding ratio of the plan as determined in the most recent actuarial <br/>
<a id="pl.42.3"></a><var>42.3</var>valuation using the actuarial value of assets is less than 80 percent there will be no <br/>
<a id="pl.42.4"></a><var>42.4</var>postretirement adjustment the following January 1.<br/>
<a id="pl.42.5"></a><var>42.5</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2010.<br/>
<br/>
<a id="bill.0.62.0"></a><a id="pl.42.6"></a><var>42.6</var>    Sec. 62. Minnesota Statutes 2008, section 354A.31, subdivision 1, is amended to read:<br/>
<a id="pl.42.7"></a><var>42.7</var>    Subdivision 1. <b>Age and service requirements.</b> Any coordinated member or former <br/>
<a id="pl.42.8"></a><var>42.8</var>coordinated member of the St. Paul Teachers Retirement Fund Association who has <br/>
<a id="pl.42.9"></a><var>42.9</var>ceased to render teaching service for the school district in which the teachers retirement <br/>
<a id="pl.42.10"></a><var>42.10</var>fund association exists and who has either attained the age of at least 55 years with not <br/>
<a id="pl.42.11"></a><var>42.11</var>less than three years of allowable service credit or received credit for not less than 30 <br/>
<a id="pl.42.12"></a><var>42.12</var>years of allowable service regardless of age, shall be entitled upon written application to a <br/>
<a id="pl.42.13"></a><var>42.13</var>retirement annuity. Any coordinated member or former coordinated member of the Duluth <br/>
<a id="pl.42.14"></a><var>42.14</var>Teachers Retirement Fund Association who has ceased to render teaching service for the <br/>
<a id="pl.42.15"></a><var>42.15</var>school district in which the teacher retirement fund association exists and who has either <br/>
<a id="pl.42.16"></a><var>42.16</var>attained the age of at least 55 years with not less than three years of allowable service <br/>
<a id="pl.42.17"></a><var>42.17</var>credit if the member became an employee before July 1, 2010, or not less than five years <br/>
<a id="pl.42.18"></a><var>42.18</var>of allowable service credit if the member became an employee after June 30, 2010, or <br/>
<a id="pl.42.19"></a><var>42.19</var>received service credit for not less than 30 years of allowable service regardless of age, <br/>
<a id="pl.42.20"></a><var>42.20</var>shall be entitled upon written application to a retirement annuity.<br/>
<a id="pl.42.21"></a><var>42.21</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2010.<br/>
<br/>
<a id="bill.0.63.0"></a><a id="pl.42.22"></a><var>42.22</var>    Sec. 63. Minnesota Statutes 2008, section 354A.35, subdivision 1, is amended to read:<br/>
<a id="pl.42.23"></a><var>42.23</var>    Subdivision 1. <b>Death before retirement; refund.</b> If a coordinated member <br/>
<a id="pl.42.24"></a><var>42.24</var>or former coordinated member dies prior to retirement or prior to the receipt of any <br/>
<a id="pl.42.25"></a><var>42.25</var>retirement annuity or other benefit payment which is or may be payable and a surviving <br/>
<a id="pl.42.26"></a><var>42.26</var>spouse optional annuity is not payable pursuant to subdivision 2, a refund shall be paid to <br/>
<a id="pl.42.27"></a><var>42.27</var>the person's surviving spouse, or if there is none, to the person's designated beneficiary, <br/>
<a id="pl.42.28"></a><var>42.28</var>or if there is none, to the legal representative of the person's estate. For a coordinated <br/>
<a id="pl.42.29"></a><var>42.29</var>member or former coordinated member of the St. Paul Teachers Retirement Fund <br/>
<a id="pl.42.30"></a><var>42.30</var>Association, the refund shall be in an amount equal to the person's accumulated employee <br/>
<a id="pl.42.31"></a><var>42.31</var>contributions plus interest at the rate of six percent per annum compounded annually. For <br/>
<a id="pl.42.32"></a><var>42.32</var>a coordinated member or former coordinated member of the Duluth Teachers Retirement <br/>
<a id="pl.42.33"></a><var>42.33</var>Fund Association, the refund shall be in an amount equal to the person's accumulated <br/>
<a id="pl.43.1"></a><var>43.1</var>employee contributions plus interest at the rate of six percent per annum compounded <br/>
<a id="pl.43.2"></a><var>43.2</var>annually to July 1, 2010, and four percent per annum compounded annually thereafter.<br/>
<a id="pl.43.3"></a><var>43.3</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2010.<br/>
<br/>
<a id="bill.0.64.0"></a><a id="pl.43.4"></a><var>43.4</var>    Sec. 64. Minnesota Statutes 2008, section 354A.37, subdivision 2, is amended to read:<br/>
<a id="pl.43.5"></a><var>43.5</var>    Subd. 2. <b>Eligibility for deferred retirement annuity.</b> (a) Any coordinated member <br/>
<a id="pl.43.6"></a><var>43.6</var>who ceases to render teaching services for the school district in which the teachers <br/>
<a id="pl.43.7"></a><var>43.7</var>retirement fund association is located, with sufficient allowable service credit to meet <br/>
<a id="pl.43.8"></a><var>43.8</var>the minimum service requirements specified in section 
         <statute_ref>354A.31, subdivision 1</statute_ref>, shall be <br/>
<a id="pl.43.9"></a><var>43.9</var>entitled to a deferred retirement annuity in lieu of a refund pursuant to subdivision 1. The <br/>
<a id="pl.43.10"></a><var>43.10</var>deferred retirement annuity shall be computed pursuant to section 
         <statute_ref>354A.31</statute_ref> and shall be <br/>
<a id="pl.43.11"></a><var>43.11</var>augmented as provided in this subdivision. The deferred annuity shall commence upon <br/>
<a id="pl.43.12"></a><var>43.12</var>application after the person on deferred status attains at least the minimum age specified in <br/>
<a id="pl.43.13"></a><var>43.13</var>section 
         <statute_ref>354A.31, subdivision 1</statute_ref>. <br/>
<a id="pl.43.14"></a><var>43.14</var>(b) The monthly annuity amount that had accrued when the member ceased to <br/>
<a id="pl.43.15"></a><var>43.15</var>render teaching service must be augmented from the first day of the month following the <br/>
<a id="pl.43.16"></a><var>43.16</var>month during which the member ceased to render teaching service to the effective date <br/>
<a id="pl.43.17"></a><var>43.17</var>of retirement. There is no augmentation if this period is less than three months. For a <br/>
<a id="pl.43.18"></a><var>43.18</var>member of the St. Paul Teachers Retirement Fund Association, the rate of augmentation <br/>
<a id="pl.43.19"></a><var>43.19</var>is three percent compounded annually until January 1 of the year following the year in <br/>
<a id="pl.43.20"></a><var>43.20</var>which the former member attains age 55, and five percent compounded annually after that <br/>
<a id="pl.43.21"></a><var>43.21</var>date to the effective date of retirement if the employee became an employee before July <br/>
<a id="pl.43.22"></a><var>43.22</var>1, 2006, and at 2.5 percent compounded annually if the employee becomes an employee <br/>
<a id="pl.43.23"></a><var>43.23</var>after June 30, 2006. For a member of the Duluth Teachers Retirement Fund Association, <br/>
<a id="pl.43.24"></a><var>43.24</var>the rate of augmentation is three percent compounded annually until January 1 of the year <br/>
<a id="pl.43.25"></a><var>43.25</var>following the year in which the former member attains age 55, five percent compounded <br/>
<a id="pl.43.26"></a><var>43.26</var>annually after that date to July 1, 2012, and two percent compounded annually after that <br/>
<a id="pl.43.27"></a><var>43.27</var>date to the effective date of retirement if the employee became an employee before <br/>
<a id="pl.43.28"></a><var>43.28</var>July 1, 2006, and at 2.5 percent compounded annually to July 1, 2012, and two percent <br/>
<a id="pl.43.29"></a><var>43.29</var>compounded annually after that date to the effective date of retirement if the employee <br/>
<a id="pl.43.30"></a><var>43.30</var>becomes an employee after June 30, 2006. If a person has more than one period of <br/>
<a id="pl.43.31"></a><var>43.31</var>uninterrupted service, a separate average salary determined under section 
         <statute_ref>354A.31</statute_ref> must <br/>
<a id="pl.43.32"></a><var>43.32</var>be used for each period, and the monthly annuity amount related to each period must be <br/>
<a id="pl.43.33"></a><var>43.33</var>augmented as provided in this subdivision. The sum of the augmented monthly annuity <br/>
<a id="pl.43.34"></a><var>43.34</var>amounts determines the total deferred annuity payable. If a person repays a refund, the <br/>
<a id="pl.43.35"></a><var>43.35</var>service restored by the repayment must be considered as continuous with the next period <br/>
<a id="pl.44.1"></a><var>44.1</var>of service for which the person has credit with the fund. If a person does not render <br/>
<a id="pl.44.2"></a><var>44.2</var>teaching services in any one fiscal year or more consecutive fiscal years and then resumes <br/>
<a id="pl.44.3"></a><var>44.3</var>teaching service, the formula percentages used from the date of resumption of teaching <br/>
<a id="pl.44.4"></a><var>44.4</var>service are those applicable to new members. The mortality table and interest assumption <br/>
<a id="pl.44.5"></a><var>44.5</var>used to compute the annuity are the table established by the fund to compute other <br/>
<a id="pl.44.6"></a><var>44.6</var>annuities, and the interest assumption under section 
         <statute_ref>356.215</statute_ref> in effect when the member <br/>
<a id="pl.44.7"></a><var>44.7</var>retires. A period of uninterrupted service for the purpose of this subdivision means a <br/>
<a id="pl.44.8"></a><var>44.8</var>period of covered teaching service during which the member has not been separated from <br/>
<a id="pl.44.9"></a><var>44.9</var>active service for more than one fiscal year. <br/>
<a id="pl.44.10"></a><var>44.10</var>(c) The augmentation provided by this subdivision applies to the benefit provided <br/>
<a id="pl.44.11"></a><var>44.11</var>in section 
         <statute_ref>354A.35, subdivision 2</statute_ref>. The augmentation provided by this subdivision does <br/>
<a id="pl.44.12"></a><var>44.12</var>not apply to any period in which a person is on an approved leave of absence from an <br/>
<a id="pl.44.13"></a><var>44.13</var>employer unit. <br/>
<a id="pl.44.14"></a><var>44.14</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2010.<br/>
<br/>
<a id="bill.0.65.0"></a><a id="pl.44.15"></a><var>44.15</var>    Sec. 65. Minnesota Statutes 2008, section 354A.37, subdivision 3, is amended to read:<br/>
<a id="pl.44.16"></a><var>44.16</var>    Subd. 3. <b>Computation of refund amount.</b> A former coordinated member of the <br/>
<a id="pl.44.17"></a><var>44.17</var>St. Paul Teachers Retirement Fund Association who qualifies for a refund pursuant to <br/>
<a id="pl.44.18"></a><var>44.18</var>under subdivision 1 shall receive a refund equal to the amount of the former coordinated <br/>
<a id="pl.44.19"></a><var>44.19</var>member's accumulated employee contributions with interest at the rate of six percent per <br/>
<a id="pl.44.20"></a><var>44.20</var>annum compounded annually. A former coordinated member of the Duluth Teachers <br/>
<a id="pl.44.21"></a><var>44.21</var>Retirement Fund Association who qualifies for a refund under subdivision 1 shall receive <br/>
<a id="pl.44.22"></a><var>44.22</var>a refund equal to the amount of the former coordinated member's accumulated employee <br/>
<a id="pl.44.23"></a><var>44.23</var>contributions with interest at the rate of six percent per annum compounded annually to <br/>
<a id="pl.44.24"></a><var>44.24</var>July 1, 2010, and four percent per annum compounded annually thereafter.<br/>
<a id="pl.44.25"></a><var>44.25</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2010.<br/>
<br/>
<a id="bill.0.66.0"></a><a id="pl.44.26"></a><var>44.26</var>    Sec. 66. Minnesota Statutes 2008, section 354A.37, subdivision 4, is amended to read:<br/>
<a id="pl.44.27"></a><var>44.27</var>    Subd. 4. <b>Certain refunds at normal retirement age.</b> Any coordinated member <br/>
<a id="pl.44.28"></a><var>44.28</var>who has attained the normal retirement age with less than ten years of allowable service <br/>
<a id="pl.44.29"></a><var>44.29</var>credit and has terminated active teaching service shall be entitled to a refund in lieu of <br/>
<a id="pl.44.30"></a><var>44.30</var>a proportionate annuity pursuant to section 
         <statute_ref>356.32</statute_ref>. The refund for a member of the St. <br/>
<a id="pl.44.31"></a><var>44.31</var>Paul Teachers Retirement Fund Association shall be equal to the coordinated member's <br/>
<a id="pl.44.32"></a><var>44.32</var>accumulated employee contributions plus interest at the rate of six percent compounded <br/>
<a id="pl.44.33"></a><var>44.33</var>annually. The refund for a member of the Duluth Teachers Retirement Fund Association <br/>
<a id="pl.45.1"></a><var>45.1</var>shall be equal to the coordinated member's accumulated employee contributions plus <br/>
<a id="pl.45.2"></a><var>45.2</var>interest at the rate of six percent compounded annually to July 1, 2010, and four percent <br/>
<a id="pl.45.3"></a><var>45.3</var>per annum compounded annually thereafter.<br/>
<a id="pl.45.4"></a><var>45.4</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2010.<br/>
<br/>
<a id="bill.0.67.0"></a><a id="pl.45.5"></a><var>45.5</var>    Sec. 67. Minnesota Statutes 2008, section 356.215, subdivision 8, is amended to read:<br/>
<a id="pl.45.6"></a><var>45.6</var>    Subd. 8. <b>Interest and salary assumptions.</b> (a) The actuarial valuation must use <br/>
<a id="pl.45.7"></a><var>45.7</var>the applicable following preretirement interest assumption and the applicable following <br/>
<a id="pl.45.8"></a><var>45.8</var>postretirement interest assumption:<br/>
<table>
<col width="50px"/>
<col width="37"/>
<col width="5"/>
<col width="11.5"/>
<col width="11.5"/>
<tr>
<td><a id="pl.45.9"></a><var>45.9</var><br/>
<a id="pl.45.10"></a><var>45.10</var><br/>
<a id="pl.45.11"></a><var>45.11</var><br/>
</td>
<td align="center">plan<br/>
</td>
<td align="center" colspan="2">preretirement<br/>
                  		interest rate<br/>
                  		assumption<br/>
</td>
<td align="center">postretirement <br/>
                  		interest rate<br/>
                  		assumption<br/>
</td>
</tr>
<tr>
<td><a id="pl.45.12"></a><var>45.12</var><br/>
</td>
<td>general state employees retirement plan<br/>
</td>
<td></td>
<td>8.5%<br/>
</td>
<td>6.0%<br/>
</td>
</tr>
<tr>
<td><a id="pl.45.13"></a><var>45.13</var><br/>
</td>
<td>correctional state employees retirement plan<br/>
</td>
<td></td>
<td>8.5<br/>
</td>
<td>6.0<br/>
</td>
</tr>
<tr>
<td><a id="pl.45.14"></a><var>45.14</var><br/>
</td>
<td>State Patrol retirement plan<br/>
</td>
<td></td>
<td>8.5<br/>
</td>
<td>6.0<br/>
</td>
</tr>
<tr>
<td><a id="pl.45.15"></a><var>45.15</var><br/>
</td>
<td>legislators retirement plan<br/>
</td>
<td></td>
<td>8.5<br/>
</td>
<td>6.0<br/>
</td>
</tr>
<tr>
<td><a id="pl.45.16"></a><var>45.16</var><br/>
</td>
<td>elective state officers retirement plan<br/>
</td>
<td></td>
<td>8.5<br/>
</td>
<td>6.0<br/>
</td>
</tr>
<tr>
<td><a id="pl.45.17"></a><var>45.17</var><br/>
</td>
<td>judges retirement plan<br/>
</td>
<td></td>
<td>8.5<br/>
</td>
<td>6.0<br/>
</td>
</tr>
<tr>
<td><a id="pl.45.18"></a><var>45.18</var><br/>
</td>
<td>general public employees retirement plan<br/>
</td>
<td></td>
<td>8.5<br/>
</td>
<td>6.0<br/>
</td>
</tr>
<tr>
<td><a id="pl.45.19"></a><var>45.19</var><br/>
</td>
<td>public employees police and fire retirement plan<br/>
</td>
<td></td>
<td>8.5<br/>
</td>
<td>6.0<br/>
</td>
</tr>
<tr>
<td><a id="pl.45.20"></a><var>45.20</var><br/>
<a id="pl.45.21"></a><var>45.21</var><br/>
</td>
<td>local government correctional service retirement <br/>
                  		plan<br/>
</td>
<td></td>
<td>8.5<br/>
</td>
<td>6.0<br/>
</td>
</tr>
<tr>
<td><a id="pl.45.22"></a><var>45.22</var><br/>
</td>
<td>teachers retirement plan<br/>
</td>
<td></td>
<td>8.5<br/>
</td>
<td>6.0<br/>
</td>
</tr>
<tr>
<td><a id="pl.45.23"></a><var>45.23</var><br/>
</td>
<td>Minneapolis employees retirement plan<br/>
</td>
<td></td>
<td>6.0<br/>
</td>
<td>5.0<br/>
</td>
</tr>
<tr>
<td><a id="pl.45.24"></a><var>45.24</var><br/>
</td>
<td>Duluth teachers retirement plan<br/>
</td>
<td></td>
<td>8.5<br/>
</td>
<td>8.5<br/>
</td>
</tr>
<tr>
<td><a id="pl.45.25"></a><var>45.25</var><br/>
</td>
<td>St. Paul teachers retirement plan<br/>
</td>
<td></td>
<td>8.5<br/>
</td>
<td>8.5<br/>
</td>
</tr>
<tr>
<td><a id="pl.45.26"></a><var>45.26</var><br/>
</td>
<td>Minneapolis Police Relief Association<br/>
</td>
<td></td>
<td>6.0<br/>
</td>
<td>6.0<br/>
</td>
</tr>
<tr>
<td><a id="pl.45.27"></a><var>45.27</var><br/>
</td>
<td>Fairmont Police Relief Association<br/>
</td>
<td></td>
<td>5.0<br/>
</td>
<td>5.0<br/>
</td>
</tr>
<tr>
<td><a id="pl.45.28"></a><var>45.28</var><br/>
</td>
<td>Minneapolis Fire Department Relief Association<br/>
</td>
<td></td>
<td>6.0<br/>
</td>
<td>6.0<br/>
</td>
</tr>
<tr>
<td><a id="pl.45.29"></a><var>45.29</var><br/>
</td>
<td>Virginia Fire Department Relief Association<br/>
</td>
<td></td>
<td>5.0<br/>
</td>
<td>5.0<br/>
</td>
</tr>
<tr>
<td><a id="pl.45.30"></a><var>45.30</var><br/>
</td>
<td>Bloomington Fire Department Relief Association<br/>
</td>
<td></td>
<td>6.0<br/>
</td>
<td>6.0<br/>
</td>
</tr>
<tr>
<td><a id="pl.45.31"></a><var>45.31</var><br/>
<a id="pl.45.32"></a><var>45.32</var><br/>
</td>
<td>local monthly benefit volunteer firefighters relief <br/>
                  		associations<br/>
</td>
<td></td>
<td>5.0<br/>
</td>
<td>5.0<br/>
</td>
</tr>
</table><a id="pl.45.33"></a><var>45.33</var>    (b) Before July 1, 2010, the actuarial valuation must use the applicable following <br/>
<a id="pl.45.34"></a><var>45.34</var>single rate future salary increase assumption, the applicable following modified single <br/>
<a id="pl.45.35"></a><var>45.35</var>rate future salary increase assumption, or the applicable following graded rate future <br/>
<a id="pl.45.36"></a><var>45.36</var>salary increase assumption:<br/>
<a id="pl.45.37"></a><var>45.37</var>    (1) single rate future salary increase assumption<br/>
<table>
<col width="50px"/>
<col width="35"/>
<col width="13"/>
<col width="17"/>
<tr>
<td><a id="pl.46.1"></a><var>46.1</var><br/>
<a id="pl.46.2"></a><var>46.2</var><br/>
</td>
<td align="center">plan<br/>
</td>
<td align="center" colspan="2">future salary<br/>
                  		increase assumption<br/>
</td>
</tr>
<tr>
<td><a id="pl.46.3"></a><var>46.3</var><br/>
</td>
<td>legislators retirement plan<br/>
</td>
<td></td>
<td>5.0%<br/>
</td>
</tr>
<tr>
<td><a id="pl.46.4"></a><var>46.4</var><br/>
</td>
<td>judges retirement plan<br/>
</td>
<td></td>
<td>4.0 <br/>
</td>
</tr>
<tr>
<td><a id="pl.46.5"></a><var>46.5</var><br/>
</td>
<td>Minneapolis Police Relief Association<br/>
</td>
<td></td>
<td>4.0<br/>
</td>
</tr>
<tr>
<td><a id="pl.46.6"></a><var>46.6</var><br/>
</td>
<td>Fairmont Police Relief Association<br/>
</td>
<td></td>
<td>3.5<br/>
</td>
</tr>
<tr>
<td><a id="pl.46.7"></a><var>46.7</var><br/>
<a id="pl.46.8"></a><var>46.8</var><br/>
</td>
<td>Minneapolis Fire Department Relief <br/>
                  		Association<br/>
</td>
<td></td>
<td>4.0<br/>
</td>
</tr>
<tr>
<td><a id="pl.46.9"></a><var>46.9</var><br/>
</td>
<td>Virginia Fire Department Relief Association<br/>
</td>
<td></td>
<td>3.5<br/>
</td>
</tr>
<tr>
<td><a id="pl.46.10"></a><var>46.10</var><br/>
<a id="pl.46.11"></a><var>46.11</var><br/>
</td>
<td>Bloomington Fire Department Relief <br/>
                  		Association<br/>
</td>
<td></td>
<td>4.0<br/>
</td>
</tr>
</table><a id="pl.46.12"></a><var>46.12</var>    (2) modified single rate future salary increase assumption<br/>
<table>
<col width="50px"/>
<col width="25"/>
<col width="10"/>
<col width="30"/>
<tr>
<td><a id="pl.46.13"></a><var>46.13</var><br/>
<a id="pl.46.14"></a><var>46.14</var><br/>
</td>
<td align="center">plan<br/>
</td>
<td></td>
<td align="center">future salary<br/>
                  		increase assumption<br/>
</td>
</tr>
<tr>
<td><a id="pl.46.15"></a><var>46.15</var><br/>
<a id="pl.46.16"></a><var>46.16</var><br/>
<a id="pl.46.17"></a><var>46.17</var><br/>
<a id="pl.46.18"></a><var>46.18</var><br/>
</td>
<td valign="top">Minneapolis employees <br/>
                  		retirement plan<br/>
</td>
<td></td>
<td>the prior calendar year amount increased <br/>
                  		first by 1.0198 percent to prior fiscal year <br/>
                  		date and then increased by 4.0 percent <br/>
                  		annually for each future year<br/>
</td>
</tr>
</table><a id="pl.46.19"></a><var>46.19</var>    (3) age-related select and ultimate future salary increase assumption or graded rate <br/>
<a id="pl.46.20"></a><var>46.20</var>future salary increase assumption<br/>
<table>
<col width="50px"/>
<col width="40"/>
<col width="25"/>
<tr>
<td><a id="pl.46.21"></a><var>46.21</var><br/>
<a id="pl.46.22"></a><var>46.22</var><br/>
</td>
<td align="center">plan<br/>
</td>
<td align="center">future salary<br/>
                  		increase assumption<br/>
</td>
</tr>
<tr>
<td><a id="pl.46.23"></a><var>46.23</var><br/>
<a id="pl.46.24"></a><var>46.24</var><br/>
</td>
<td valign="top">general state employees retirement plan<br/>
</td>
<td align="center" valign="top">select calculation and <br/>
                  		assumption A<br/>
</td>
</tr>
<tr>
<td><a id="pl.46.25"></a><var>46.25</var><br/>
</td>
<td valign="top">correctional state employees retirement plan<br/>
</td>
<td align="center" valign="top">assumption H G<br/>
</td>
</tr>
<tr>
<td><a id="pl.46.26"></a><var>46.26</var><br/>
</td>
<td valign="top">State Patrol retirement plan<br/>
</td>
<td align="center" valign="top">assumption G F<br/>
</td>
</tr>
<tr>
<td><a id="pl.46.27"></a><var>46.27</var><br/>
<a id="pl.46.28"></a><var>46.28</var><br/>
</td>
<td valign="top">general public employees retirement plan<br/>
</td>
<td align="center" valign="top">select calculation and <br/>
assumption B<br/>
</td>
</tr>
<tr>
<td><a id="pl.46.29"></a><var>46.29</var><br/>
</td>
<td valign="top">public employees police and fire fund retirement plan<br/>
</td>
<td align="center" valign="top">assumption C B<br/>
</td>
</tr>
<tr>
<td><a id="pl.46.30"></a><var>46.30</var><br/>
</td>
<td valign="top">local government correctional service retirement plan<br/>
</td>
<td align="center" valign="top">assumption G F<br/>
</td>
</tr>
<tr>
<td><a id="pl.46.31"></a><var>46.31</var><br/>
</td>
<td valign="top">teachers retirement plan<br/>
</td>
<td align="center" valign="top">assumption D C<br/>
</td>
</tr>
<tr>
<td><a id="pl.46.32"></a><var>46.32</var><br/>
</td>
<td valign="top">Duluth teachers retirement plan<br/>
</td>
<td align="center" valign="top">assumption E D<br/>
</td>
</tr>
<tr>
<td><a id="pl.46.33"></a><var>46.33</var><br/>
</td>
<td valign="top">St. Paul teachers retirement plan<br/>
</td>
<td align="center" valign="top">assumption F E<br/>
</td>
</tr>
</table><a id="pl.46.34"></a><var>46.34</var>The select calculation is: during the <br/>
<a id="pl.46.35"></a><var>46.35</var>designated select period, a designated <br/>
<a id="pl.46.36"></a><var>46.36</var>percentage rate is multiplied by the result of <br/>
<a id="pl.46.37"></a><var>46.37</var>the designated integer minus T, where T is the <br/>
<a id="pl.46.38"></a><var>46.38</var>number of completed years of service, and is <br/>
<a id="pl.46.39"></a><var>46.39</var>added to the applicable future salary increase <br/>
<a id="pl.46.40"></a><var>46.40</var>assumption. The designated select period is <br/>
<a id="pl.46.41"></a><var>46.41</var>five years and the designated integer is five <br/>
<a id="pl.46.42"></a><var>46.42</var>for the general state employees retirement <br/>
<a id="pl.47.1"></a><var>47.1</var>plan and the general public employees <br/>
<a id="pl.47.2"></a><var>47.2</var>retirement plan. The designated select period <br/>
<a id="pl.47.3"></a><var>47.3</var>is ten years and the designated integer is ten <br/>
<a id="pl.47.4"></a><var>47.4</var>for all other retirement plans covered by <br/>
<a id="pl.47.5"></a><var>47.5</var>this clause. The designated percentage rate <br/>
<a id="pl.47.6"></a><var>47.6</var>is: (1) 0.2 percent for the correctional state <br/>
<a id="pl.47.7"></a><var>47.7</var>employees retirement plan, the State Patrol <br/>
<a id="pl.47.8"></a><var>47.8</var>retirement plan, the public employees police <br/>
<a id="pl.47.9"></a><var>47.9</var>and fire plan, and the local government <br/>
<a id="pl.47.10"></a><var>47.10</var>correctional service plan; (2) 0.6 percent <br/>
<a id="pl.47.11"></a><var>47.11</var>for the general state employees retirement <br/>
<a id="pl.47.12"></a><var>47.12</var>plan and the general public employees <br/>
<a id="pl.47.13"></a><var>47.13</var>retirement plan; and (3) 0.3 percent for the <br/>
<a id="pl.47.14"></a><var>47.14</var>teachers retirement plan, the Duluth Teachers <br/>
<a id="pl.47.15"></a><var>47.15</var>Retirement Fund Association, and the St. <br/>
<a id="pl.47.16"></a><var>47.16</var>Paul Teachers Retirement Fund Association. <br/>
<a id="pl.47.17"></a><var>47.17</var>The select calculation for the Duluth Teachers <br/>
<a id="pl.47.18"></a><var>47.18</var>Retirement Fund Association is 8.00 percent <br/>
<a id="pl.47.19"></a><var>47.19</var>per year for service years one through seven, <br/>
<a id="pl.47.20"></a><var>47.20</var>7.25 percent per year for service years seven <br/>
<a id="pl.47.21"></a><var>47.21</var>and eight, and 6.50 percent per year for <br/>
<a id="pl.47.22"></a><var>47.22</var>service years eight and nine.<br/>
<a id="pl.47.23"></a><var>47.23</var>    The ultimate future salary increase assumption is:<br/>
<table>
<col width="50px"/>
<col width="5"/>
<col width="7.5"/>
<col width="7.5"/>
<col width="7.5"/>
<col width="7.5"/>
<col width="7.5"/>
<col width="7.5"/>
<col width="7.5"/>
<col width="7.5"/>
<tr>
<td><a id="pl.47.24"></a><var>47.24</var><br/>
</td>
<td>age<br/>
</td>
<td>A<br/>
</td>
<td>B<br/>
</td>
<td>CB<br/>
</td>
<td>DC<br/>
</td>
<td>ED<br/>
</td>
<td>FE<br/>
</td>
<td>GF<br/>
</td>
<td>HG<br/>
</td>
</tr>
<tr>
<td><a id="pl.47.25"></a><var>47.25</var><br/>
</td>
<td>16<br/>
</td>
<td>5.95%<br/>
</td>
<td>5.95%<br/>
</td>
<td>11.00%<br/>
</td>
<td>7.70%<br/>
</td>
<td>8.00%<br/>
</td>
<td>6.90%<br/>
</td>
<td>7.7500%<br/>
</td>
<td>7.2500%<br/>
</td>
</tr>
<tr>
<td><a id="pl.47.26"></a><var>47.26</var><br/>
</td>
<td>17<br/>
</td>
<td>5.90<br/>
</td>
<td>5.90<br/>
</td>
<td>11.00<br/>
</td>
<td>7.65<br/>
</td>
<td>8.00<br/>
</td>
<td>6.90<br/>
</td>
<td>7.7500<br/>
</td>
<td>7.2500<br/>
</td>
</tr>
<tr>
<td><a id="pl.47.27"></a><var>47.27</var><br/>
</td>
<td>18<br/>
</td>
<td>5.85<br/>
</td>
<td>5.85<br/>
</td>
<td>11.00<br/>
</td>
<td>7.60<br/>
</td>
<td>8.00<br/>
</td>
<td>6.90<br/>
</td>
<td>7.7500<br/>
</td>
<td>7.2500<br/>
</td>
</tr>
<tr>
<td><a id="pl.47.28"></a><var>47.28</var><br/>
</td>
<td>19<br/>
</td>
<td>5.80<br/>
</td>
<td>5.80<br/>
</td>
<td>11.00<br/>
</td>
<td>7.55<br/>
</td>
<td>8.00<br/>
</td>
<td>6.90<br/>
</td>
<td>7.7500<br/>
</td>
<td>7.2500<br/>
</td>
</tr>
<tr>
<td><a id="pl.47.29"></a><var>47.29</var><br/>
</td>
<td>20<br/>
</td>
<td>5.75<br/>
</td>
<td>5.40<br/>
</td>
<td>11.00<br/>
</td>
<td>5.50<br/>
</td>
<td>6.90<br/>
</td>
<td>6.90<br/>
</td>
<td>7.7500<br/>
</td>
<td>7.2500<br/>
</td>
</tr>
<tr>
<td><a id="pl.47.30"></a><var>47.30</var><br/>
</td>
<td>21<br/>
</td>
<td>5.75<br/>
</td>
<td>5.40<br/>
</td>
<td>11.00<br/>
</td>
<td>5.50<br/>
</td>
<td>6.90<br/>
</td>
<td>6.90<br/>
</td>
<td>7.1454<br/>
</td>
<td>6.6454<br/>
</td>
</tr>
<tr>
<td><a id="pl.47.31"></a><var>47.31</var><br/>
</td>
<td>22<br/>
</td>
<td>5.75<br/>
</td>
<td>5.40<br/>
</td>
<td>10.50<br/>
</td>
<td>5.50<br/>
</td>
<td>6.90<br/>
</td>
<td>6.90<br/>
</td>
<td>7.0725<br/>
</td>
<td>6.5725<br/>
</td>
</tr>
<tr>
<td><a id="pl.47.32"></a><var>47.32</var><br/>
</td>
<td>23<br/>
</td>
<td>5.75<br/>
</td>
<td>5.40<br/>
</td>
<td>10.00<br/>
</td>
<td>5.50<br/>
</td>
<td>6.85<br/>
</td>
<td>6.85<br/>
</td>
<td>7.0544<br/>
</td>
<td>6.5544<br/>
</td>
</tr>
<tr>
<td><a id="pl.47.33"></a><var>47.33</var><br/>
</td>
<td>24<br/>
</td>
<td>5.75<br/>
</td>
<td>5.40<br/>
</td>
<td>9.50<br/>
</td>
<td>5.50<br/>
</td>
<td>6.80<br/>
</td>
<td>6.80<br/>
</td>
<td>7.0363<br/>
</td>
<td>6.5363<br/>
</td>
</tr>
<tr>
<td><a id="pl.47.34"></a><var>47.34</var><br/>
</td>
<td>25<br/>
</td>
<td>5.75<br/>
</td>
<td>5.40<br/>
</td>
<td>9.00<br/>
</td>
<td>5.50<br/>
</td>
<td>6.75<br/>
</td>
<td>6.75<br/>
</td>
<td>7.0000<br/>
</td>
<td>6.5000<br/>
</td>
</tr>
<tr>
<td><a id="pl.47.35"></a><var>47.35</var><br/>
</td>
<td>26<br/>
</td>
<td>5.75<br/>
</td>
<td>5.36<br/>
</td>
<td>8.70<br/>
</td>
<td>5.50<br/>
</td>
<td>6.70<br/>
</td>
<td>6.70<br/>
</td>
<td>7.0000<br/>
</td>
<td>6.5000<br/>
</td>
</tr>
<tr>
<td><a id="pl.47.36"></a><var>47.36</var><br/>
</td>
<td>27<br/>
</td>
<td>5.75<br/>
</td>
<td>5.32<br/>
</td>
<td>8.40<br/>
</td>
<td>5.50<br/>
</td>
<td>6.65<br/>
</td>
<td>6.65<br/>
</td>
<td>7.0000<br/>
</td>
<td>6.5000<br/>
</td>
</tr>
<tr>
<td><a id="pl.47.37"></a><var>47.37</var><br/>
</td>
<td>28<br/>
</td>
<td>5.75<br/>
</td>
<td>5.28<br/>
</td>
<td>8.10<br/>
</td>
<td>5.50<br/>
</td>
<td>6.60<br/>
</td>
<td>6.60<br/>
</td>
<td>7.0000<br/>
</td>
<td>6.5000<br/>
</td>
</tr>
<tr>
<td><a id="pl.47.38"></a><var>47.38</var><br/>
</td>
<td>29<br/>
</td>
<td>5.75<br/>
</td>
<td>5.24<br/>
</td>
<td>7.80<br/>
</td>
<td>5.50<br/>
</td>
<td>6.55<br/>
</td>
<td>6.55<br/>
</td>
<td>7.0000<br/>
</td>
<td>6.5000<br/>
</td>
</tr>
<tr>
<td><a id="pl.47.39"></a><var>47.39</var><br/>
</td>
<td>30<br/>
</td>
<td>5.75<br/>
</td>
<td>5.20<br/>
</td>
<td>7.50<br/>
</td>
<td>5.50<br/>
</td>
<td>6.50<br/>
</td>
<td>6.50<br/>
</td>
<td>7.0000<br/>
</td>
<td>6.5000<br/>
</td>
</tr>
<tr>
<td><a id="pl.48.1"></a><var>48.1</var><br/>
</td>
<td>31<br/>
</td>
<td>5.75<br/>
</td>
<td>5.16<br/>
</td>
<td>7.30<br/>
</td>
<td>5.50<br/>
</td>
<td>6.45<br/>
</td>
<td>6.45<br/>
</td>
<td>7.0000<br/>
</td>
<td>6.5000<br/>
</td>
</tr>
<tr>
<td><a id="pl.48.2"></a><var>48.2</var><br/>
</td>
<td>32<br/>
</td>
<td>5.75<br/>
</td>
<td>5.12<br/>
</td>
<td>7.10<br/>
</td>
<td>5.50<br/>
</td>
<td>6.40<br/>
</td>
<td>6.40<br/>
</td>
<td>7.0000<br/>
</td>
<td>6.5000<br/>
</td>
</tr>
<tr>
<td><a id="pl.48.3"></a><var>48.3</var><br/>
</td>
<td>33<br/>
</td>
<td>5.75<br/>
</td>
<td>5.08<br/>
</td>
<td>6.90<br/>
</td>
<td>5.50<br/>
</td>
<td>6.35<br/>
</td>
<td>6.35<br/>
</td>
<td>7.0000<br/>
</td>
<td>6.5000<br/>
</td>
</tr>
<tr>
<td><a id="pl.48.4"></a><var>48.4</var><br/>
</td>
<td>34<br/>
</td>
<td>5.75<br/>
</td>
<td>5.04<br/>
</td>
<td>6.70<br/>
</td>
<td>5.50<br/>
</td>
<td>6.30<br/>
</td>
<td>6.30<br/>
</td>
<td>7.0000<br/>
</td>
<td>6.5000<br/>
</td>
</tr>
<tr>
<td><a id="pl.48.5"></a><var>48.5</var><br/>
</td>
<td>35<br/>
</td>
<td>5.75<br/>
</td>
<td>5.00<br/>
</td>
<td>6.50<br/>
</td>
<td>5.50<br/>
</td>
<td>6.25<br/>
</td>
<td>6.25<br/>
</td>
<td>7.0000<br/>
</td>
<td>6.5000<br/>
</td>
</tr>
<tr>
<td><a id="pl.48.6"></a><var>48.6</var><br/>
</td>
<td>36<br/>
</td>
<td>5.75<br/>
</td>
<td>4.96<br/>
</td>
<td>6.30<br/>
</td>
<td>5.50<br/>
</td>
<td>6.20<br/>
</td>
<td>6.20<br/>
</td>
<td>6.9019<br/>
</td>
<td>6.4019<br/>
</td>
</tr>
<tr>
<td><a id="pl.48.7"></a><var>48.7</var><br/>
</td>
<td>37<br/>
</td>
<td>5.75<br/>
</td>
<td>4.92<br/>
</td>
<td>6.10<br/>
</td>
<td>5.50<br/>
</td>
<td>6.15<br/>
</td>
<td>6.15<br/>
</td>
<td>6.8074<br/>
</td>
<td>6.3074<br/>
</td>
</tr>
<tr>
<td><a id="pl.48.8"></a><var>48.8</var><br/>
</td>
<td>38<br/>
</td>
<td>5.75<br/>
</td>
<td>4.88<br/>
</td>
<td>5.90<br/>
</td>
<td>5.40<br/>
</td>
<td>6.10<br/>
</td>
<td>6.10<br/>
</td>
<td>6.7125<br/>
</td>
<td>6.2125<br/>
</td>
</tr>
<tr>
<td><a id="pl.48.9"></a><var>48.9</var><br/>
</td>
<td>39<br/>
</td>
<td>5.75<br/>
</td>
<td>4.84<br/>
</td>
<td>5.70<br/>
</td>
<td>5.30<br/>
</td>
<td>6.05<br/>
</td>
<td>6.05<br/>
</td>
<td>6.6054<br/>
</td>
<td>6.1054<br/>
</td>
</tr>
<tr>
<td><a id="pl.48.10"></a><var>48.10</var><br/>
</td>
<td>40<br/>
</td>
<td>5.75<br/>
</td>
<td>4.80<br/>
</td>
<td>5.50<br/>
</td>
<td>5.20<br/>
</td>
<td>6.00<br/>
</td>
<td>6.00<br/>
</td>
<td>6.5000<br/>
</td>
<td>6.0000<br/>
</td>
</tr>
<tr>
<td><a id="pl.48.11"></a><var>48.11</var><br/>
</td>
<td>41<br/>
</td>
<td>5.75<br/>
</td>
<td>4.76<br/>
</td>
<td>5.40<br/>
</td>
<td>5.10<br/>
</td>
<td>5.90<br/>
</td>
<td>5.95<br/>
</td>
<td>6.3540<br/>
</td>
<td>5.8540<br/>
</td>
</tr>
<tr>
<td><a id="pl.48.12"></a><var>48.12</var><br/>
</td>
<td>42<br/>
</td>
<td>5.75<br/>
</td>
<td>4.72<br/>
</td>
<td>5.30<br/>
</td>
<td>5.00<br/>
</td>
<td>5.80<br/>
</td>
<td>5.90<br/>
</td>
<td>6.2087<br/>
</td>
<td>5.7087<br/>
</td>
</tr>
<tr>
<td><a id="pl.48.13"></a><var>48.13</var><br/>
</td>
<td>43<br/>
</td>
<td>5.65<br/>
</td>
<td>4.68<br/>
</td>
<td>5.20<br/>
</td>
<td>4.90<br/>
</td>
<td>5.70<br/>
</td>
<td>5.85<br/>
</td>
<td>6.0622<br/>
</td>
<td>5.5622<br/>
</td>
</tr>
<tr>
<td><a id="pl.48.14"></a><var>48.14</var><br/>
</td>
<td>44<br/>
</td>
<td>5.55<br/>
</td>
<td>4.64<br/>
</td>
<td>5.10<br/>
</td>
<td>4.80<br/>
</td>
<td>5.60<br/>
</td>
<td>5.80<br/>
</td>
<td>5.9048<br/>
</td>
<td>5.4078<br/>
</td>
</tr>
<tr>
<td><a id="pl.48.15"></a><var>48.15</var><br/>
</td>
<td>45<br/>
</td>
<td>5.45<br/>
</td>
<td>4.60<br/>
</td>
<td>5.00<br/>
</td>
<td>4.70<br/>
</td>
<td>5.50<br/>
</td>
<td>5.75<br/>
</td>
<td>5.7500<br/>
</td>
<td>5.2500<br/>
</td>
</tr>
<tr>
<td><a id="pl.48.16"></a><var>48.16</var><br/>
</td>
<td>46<br/>
</td>
<td>5.35<br/>
</td>
<td>4.56<br/>
</td>
<td>4.95<br/>
</td>
<td>4.60<br/>
</td>
<td>5.40<br/>
</td>
<td>5.70<br/>
</td>
<td>5.6940<br/>
</td>
<td>5.1940<br/>
</td>
</tr>
<tr>
<td><a id="pl.48.17"></a><var>48.17</var><br/>
</td>
<td>47<br/>
</td>
<td>5.25<br/>
</td>
<td>4.52<br/>
</td>
<td>4.90<br/>
</td>
<td>4.50<br/>
</td>
<td>5.30<br/>
</td>
<td>5.65<br/>
</td>
<td>5.6375<br/>
</td>
<td>5.1375<br/>
</td>
</tr>
<tr>
<td><a id="pl.48.18"></a><var>48.18</var><br/>
</td>
<td>48<br/>
</td>
<td>5.15<br/>
</td>
<td>4.48<br/>
</td>
<td>4.85<br/>
</td>
<td>4.50<br/>
</td>
<td>5.20<br/>
</td>
<td>5.60<br/>
</td>
<td>5.5822<br/>
</td>
<td>5.0822<br/>
</td>
</tr>
<tr>
<td><a id="pl.48.19"></a><var>48.19</var><br/>
</td>
<td>49<br/>
</td>
<td>5.05<br/>
</td>
<td>4.44<br/>
</td>
<td>4.80<br/>
</td>
<td>4.50<br/>
</td>
<td>5.10<br/>
</td>
<td>5.55<br/>
</td>
<td>5.5404<br/>
</td>
<td>5.0404<br/>
</td>
</tr>
<tr>
<td><a id="pl.48.20"></a><var>48.20</var><br/>
</td>
<td>50<br/>
</td>
<td>4.95<br/>
</td>
<td>4.40<br/>
</td>
<td>4.75<br/>
</td>
<td>4.50<br/>
</td>
<td>5.00<br/>
</td>
<td>5.50<br/>
</td>
<td>5.5000<br/>
</td>
<td>5.0000<br/>
</td>
</tr>
<tr>
<td><a id="pl.48.21"></a><var>48.21</var><br/>
</td>
<td>51<br/>
</td>
<td>4.85<br/>
</td>
<td>4.36<br/>
</td>
<td>4.75<br/>
</td>
<td>4.50<br/>
</td>
<td>4.90<br/>
</td>
<td>5.45<br/>
</td>
<td>5.4384<br/>
</td>
<td>4.9384<br/>
</td>
</tr>
<tr>
<td><a id="pl.48.22"></a><var>48.22</var><br/>
</td>
<td>52<br/>
</td>
<td>4.75<br/>
</td>
<td>4.32<br/>
</td>
<td>4.75<br/>
</td>
<td>4.50<br/>
</td>
<td>4.80<br/>
</td>
<td>5.40<br/>
</td>
<td>5.3776<br/>
</td>
<td>4.8776<br/>
</td>
</tr>
<tr>
<td><a id="pl.48.23"></a><var>48.23</var><br/>
</td>
<td>53<br/>
</td>
<td>4.65<br/>
</td>
<td>4.28<br/>
</td>
<td>4.75<br/>
</td>
<td>4.50<br/>
</td>
<td>4.70<br/>
</td>
<td>5.35<br/>
</td>
<td>5.3167<br/>
</td>
<td>4.8167<br/>
</td>
</tr>
<tr>
<td><a id="pl.48.24"></a><var>48.24</var><br/>
</td>
<td>54<br/>
</td>
<td>4.55<br/>
</td>
<td>4.24<br/>
</td>
<td>4.75<br/>
</td>
<td>4.50<br/>
</td>
<td>4.60<br/>
</td>
<td>5.30<br/>
</td>
<td>5.2826<br/>
</td>
<td>4.7826<br/>
</td>
</tr>
<tr>
<td><a id="pl.48.25"></a><var>48.25</var><br/>
</td>
<td>55<br/>
</td>
<td>4.45<br/>
</td>
<td>4.20<br/>
</td>
<td>4.75<br/>
</td>
<td>4.50<br/>
</td>
<td>4.50<br/>
</td>
<td>5.25<br/>
</td>
<td>5.2500<br/>
</td>
<td>4.7500<br/>
</td>
</tr>
<tr>
<td><a id="pl.48.26"></a><var>48.26</var><br/>
</td>
<td>56<br/>
</td>
<td>4.35<br/>
</td>
<td>4.16<br/>
</td>
<td>4.75<br/>
</td>
<td>4.50<br/>
</td>
<td>4.40<br/>
</td>
<td>5.20<br/>
</td>
<td>5.2500<br/>
</td>
<td>4.7500<br/>
</td>
</tr>
<tr>
<td><a id="pl.48.27"></a><var>48.27</var><br/>
</td>
<td>57<br/>
</td>
<td>4.25<br/>
</td>
<td>4.12<br/>
</td>
<td>4.75<br/>
</td>
<td>4.50<br/>
</td>
<td>4.30<br/>
</td>
<td>5.15<br/>
</td>
<td>5.2500<br/>
</td>
<td>4.7500<br/>
</td>
</tr>
<tr>
<td><a id="pl.48.28"></a><var>48.28</var><br/>
</td>
<td>58<br/>
</td>
<td>4.25<br/>
</td>
<td>4.08<br/>
</td>
<td>4.75<br/>
</td>
<td>4.60<br/>
</td>
<td>4.20<br/>
</td>
<td>5.10<br/>
</td>
<td>5.2500<br/>
</td>
<td>4.7500<br/>
</td>
</tr>
<tr>
<td><a id="pl.48.29"></a><var>48.29</var><br/>
</td>
<td>59<br/>
</td>
<td>4.25<br/>
</td>
<td>4.04<br/>
</td>
<td>4.75<br/>
</td>
<td>4.70<br/>
</td>
<td>4.10<br/>
</td>
<td>5.05<br/>
</td>
<td>5.2500<br/>
</td>
<td>4.7500<br/>
</td>
</tr>
<tr>
<td><a id="pl.48.30"></a><var>48.30</var><br/>
</td>
<td>60<br/>
</td>
<td>4.25<br/>
</td>
<td>4.00<br/>
</td>
<td>4.75<br/>
</td>
<td>4.80<br/>
</td>
<td>4.00<br/>
</td>
<td>5.00<br/>
</td>
<td>5.2500<br/>
</td>
<td>4.7500<br/>
</td>
</tr>
<tr>
<td><a id="pl.48.31"></a><var>48.31</var><br/>
</td>
<td>61<br/>
</td>
<td>4.25<br/>
</td>
<td>4.00<br/>
</td>
<td>4.75<br/>
</td>
<td>4.90<br/>
</td>
<td>3.90<br/>
</td>
<td>5.00<br/>
</td>
<td>5.2500<br/>
</td>
<td>4.7500<br/>
</td>
</tr>
<tr>
<td><a id="pl.48.32"></a><var>48.32</var><br/>
</td>
<td>62<br/>
</td>
<td>4.25<br/>
</td>
<td>4.00<br/>
</td>
<td>4.75<br/>
</td>
<td>5.00<br/>
</td>
<td>3.80<br/>
</td>
<td>5.00<br/>
</td>
<td>5.2500<br/>
</td>
<td>4.7500<br/>
</td>
</tr>
<tr>
<td><a id="pl.48.33"></a><var>48.33</var><br/>
</td>
<td>63<br/>
</td>
<td>4.25<br/>
</td>
<td>4.00<br/>
</td>
<td>4.75<br/>
</td>
<td>5.10<br/>
</td>
<td>3.70<br/>
</td>
<td>5.00<br/>
</td>
<td>5.2500<br/>
</td>
<td>4.7500<br/>
</td>
</tr>
<tr>
<td><a id="pl.48.34"></a><var>48.34</var><br/>
</td>
<td>64<br/>
</td>
<td>4.25<br/>
</td>
<td>4.00<br/>
</td>
<td>4.75<br/>
</td>
<td>5.20<br/>
</td>
<td>3.60<br/>
</td>
<td>5.00<br/>
</td>
<td>5.2500<br/>
</td>
<td>4.7500<br/>
</td>
</tr>
<tr>
<td><a id="pl.48.35"></a><var>48.35</var><br/>
</td>
<td>65<br/>
</td>
<td>4.25<br/>
</td>
<td>4.00<br/>
</td>
<td>4.75<br/>
</td>
<td>5.20<br/>
</td>
<td>3.50<br/>
</td>
<td>5.00<br/>
</td>
<td>5.2500<br/>
</td>
<td>4.7500<br/>
</td>
</tr>
<tr>
<td><a id="pl.48.36"></a><var>48.36</var><br/>
</td>
<td>66<br/>
</td>
<td>4.25<br/>
</td>
<td>4.00<br/>
</td>
<td>4.75<br/>
</td>
<td>5.20<br/>
</td>
<td>3.50<br/>
</td>
<td>5.00<br/>
</td>
<td>5.2500<br/>
</td>
<td>4.7500<br/>
</td>
</tr>
<tr>
<td><a id="pl.48.37"></a><var>48.37</var><br/>
</td>
<td>67<br/>
</td>
<td>4.25<br/>
</td>
<td>4.00<br/>
</td>
<td>4.75<br/>
</td>
<td>5.20<br/>
</td>
<td>3.50<br/>
</td>
<td>5.00<br/>
</td>
<td>5.2500<br/>
</td>
<td>4.7500<br/>
</td>
</tr>
<tr>
<td><a id="pl.48.38"></a><var>48.38</var><br/>
</td>
<td>68<br/>
</td>
<td>4.25<br/>
</td>
<td>4.00<br/>
</td>
<td>4.75<br/>
</td>
<td>5.20<br/>
</td>
<td>3.50<br/>
</td>
<td>5.00<br/>
</td>
<td>5.2500<br/>
</td>
<td>4.7500<br/>
</td>
</tr>
<tr>
<td><a id="pl.48.39"></a><var>48.39</var><br/>
</td>
<td>69<br/>
</td>
<td>4.25<br/>
</td>
<td>4.00<br/>
</td>
<td>4.75<br/>
</td>
<td>5.20<br/>
</td>
<td>3.50<br/>
</td>
<td>5.00<br/>
</td>
<td>5.2500<br/>
</td>
<td>4.7500<br/>
</td>
</tr>
<tr>
<td><a id="pl.48.40"></a><var>48.40</var><br/>
</td>
<td>70<br/>
</td>
<td>4.25<br/>
</td>
<td>4.00<br/>
</td>
<td>4.75<br/>
</td>
<td>5.20<br/>
</td>
<td>3.50<br/>
</td>
<td>5.00<br/>
</td>
<td>5.2500<br/>
</td>
<td>4.7500<br/>
</td>
</tr>
<tr>
<td><a id="pl.48.41"></a><var>48.41</var><br/>
</td>
<td>71<br/>
</td>
<td>4.25<br/>
</td>
<td>4.00<br/>
</td>
<td></td>
<td>5.20<br/>
</td>
<td></td>
<td></td>
<td></td>
<td></td>
</tr>
</table><a id="pl.48.42"></a><var>48.42</var>(4) service-related ultimate future salary increase assumption<br/>
<table>
<col width="50px"/>
<col width="20"/>
<col width="45"/>
<tr>
<td><a id="pl.49.1"></a><var>49.1</var><br/>
<a id="pl.49.2"></a><var>49.2</var><br/>
</td>
<td align="center">service length<br/>
</td>
<td align="center">general employees retirement plan of the Public <br/>
Employees Retirement Association<br/>
</td>
</tr>
<tr>
<td><a id="pl.49.3"></a><var>49.3</var><br/>
</td>
<td align="center">1<br/>
</td>
<td align="center">12.03%<br/>
</td>
</tr>
<tr>
<td><a id="pl.49.4"></a><var>49.4</var><br/>
</td>
<td align="center">2<br/>
</td>
<td align="center">8.90<br/>
</td>
</tr>
<tr>
<td><a id="pl.49.5"></a><var>49.5</var><br/>
</td>
<td align="center">3<br/>
</td>
<td align="center">7.46<br/>
</td>
</tr>
<tr>
<td><a id="pl.49.6"></a><var>49.6</var><br/>
</td>
<td align="center">4<br/>
</td>
<td align="center">6.58<br/>
</td>
</tr>
<tr>
<td><a id="pl.49.7"></a><var>49.7</var><br/>
</td>
<td align="center">5<br/>
</td>
<td align="center">5.97<br/>
</td>
</tr>
<tr>
<td><a id="pl.49.8"></a><var>49.8</var><br/>
</td>
<td align="center">6<br/>
</td>
<td align="center">5.52<br/>
</td>
</tr>
<tr>
<td><a id="pl.49.9"></a><var>49.9</var><br/>
</td>
<td align="center">7<br/>
</td>
<td align="center">5.16<br/>
</td>
</tr>
<tr>
<td><a id="pl.49.10"></a><var>49.10</var><br/>
</td>
<td align="center">8<br/>
</td>
<td align="center">4.87<br/>
</td>
</tr>
<tr>
<td><a id="pl.49.11"></a><var>49.11</var><br/>
</td>
<td align="center">9<br/>
</td>
<td align="center">4.63<br/>
</td>
</tr>
<tr>
<td><a id="pl.49.12"></a><var>49.12</var><br/>
</td>
<td align="center">10<br/>
</td>
<td align="center">4.42<br/>
</td>
</tr>
<tr>
<td><a id="pl.49.13"></a><var>49.13</var><br/>
</td>
<td align="center">11<br/>
</td>
<td align="center">4.24<br/>
</td>
</tr>
<tr>
<td><a id="pl.49.14"></a><var>49.14</var><br/>
</td>
<td align="center">12<br/>
</td>
<td align="center">4.08<br/>
</td>
</tr>
<tr>
<td><a id="pl.49.15"></a><var>49.15</var><br/>
</td>
<td align="center">13<br/>
</td>
<td align="center">3.94<br/>
</td>
</tr>
<tr>
<td><a id="pl.49.16"></a><var>49.16</var><br/>
</td>
<td align="center">14<br/>
</td>
<td align="center">3.82<br/>
</td>
</tr>
<tr>
<td><a id="pl.49.17"></a><var>49.17</var><br/>
</td>
<td align="center">15<br/>
</td>
<td align="center">3.70<br/>
</td>
</tr>
<tr>
<td><a id="pl.49.18"></a><var>49.18</var><br/>
</td>
<td align="center">16<br/>
</td>
<td align="center">3.60<br/>
</td>
</tr>
<tr>
<td><a id="pl.49.19"></a><var>49.19</var><br/>
</td>
<td align="center">17<br/>
</td>
<td align="center">3.51<br/>
</td>
</tr>
<tr>
<td><a id="pl.49.20"></a><var>49.20</var><br/>
</td>
<td align="center">18<br/>
</td>
<td align="center">3.50<br/>
</td>
</tr>
<tr>
<td><a id="pl.49.21"></a><var>49.21</var><br/>
</td>
<td align="center">19<br/>
</td>
<td align="center">3.50<br/>
</td>
</tr>
<tr>
<td><a id="pl.49.22"></a><var>49.22</var><br/>
</td>
<td align="center">20<br/>
</td>
<td align="center">3.50<br/>
</td>
</tr>
<tr>
<td><a id="pl.49.23"></a><var>49.23</var><br/>
</td>
<td align="center">21<br/>
</td>
<td align="center">3.50<br/>
</td>
</tr>
<tr>
<td><a id="pl.49.24"></a><var>49.24</var><br/>
</td>
<td align="center">22<br/>
</td>
<td align="center">3.50<br/>
</td>
</tr>
<tr>
<td><a id="pl.49.25"></a><var>49.25</var><br/>
</td>
<td align="center">23<br/>
</td>
<td align="center">3.50<br/>
</td>
</tr>
<tr>
<td><a id="pl.49.26"></a><var>49.26</var><br/>
</td>
<td align="center">24<br/>
</td>
<td align="center">3.50<br/>
</td>
</tr>
<tr>
<td><a id="pl.49.27"></a><var>49.27</var><br/>
</td>
<td align="center">25<br/>
</td>
<td align="center">3.50<br/>
</td>
</tr>
<tr>
<td><a id="pl.49.28"></a><var>49.28</var><br/>
</td>
<td align="center">26<br/>
</td>
<td align="center">3.50<br/>
</td>
</tr>
<tr>
<td><a id="pl.49.29"></a><var>49.29</var><br/>
</td>
<td align="center">27<br/>
</td>
<td align="center">3.50<br/>
</td>
</tr>
<tr>
<td><a id="pl.49.30"></a><var>49.30</var><br/>
</td>
<td align="center">28<br/>
</td>
<td align="center">3.50<br/>
</td>
</tr>
<tr>
<td><a id="pl.49.31"></a><var>49.31</var><br/>
</td>
<td align="center">29<br/>
</td>
<td align="center">3.50<br/>
</td>
</tr>
<tr>
<td><a id="pl.49.32"></a><var>49.32</var><br/>
</td>
<td align="center">30 or more<br/>
</td>
<td align="center">3.50<br/>
</td>
</tr>
</table><a id="pl.49.33"></a><var>49.33</var>    (c) Before July 2, 2010, the actuarial valuation must use the applicable following <br/>
<a id="pl.49.34"></a><var>49.34</var>payroll growth assumption for calculating the amortization requirement for the unfunded <br/>
<a id="pl.49.35"></a><var>49.35</var>actuarial accrued liability where the amortization retirement is calculated as a level <br/>
<a id="pl.49.36"></a><var>49.36</var>percentage of an increasing payroll:<br/>
<table>
<col width="50px"/>
<col width="37"/>
<col width="11"/>
<col width="17"/>
<tr>
<td><a id="pl.49.37"></a><var>49.37</var><br/>
<a id="pl.49.38"></a><var>49.38</var><br/>
</td>
<td align="center">plan<br/>
</td>
<td align="center" colspan="2">payroll growth<br/>
                  		assumption<br/>
</td>
</tr>
<tr>
<td><a id="pl.49.39"></a><var>49.39</var><br/>
</td>
<td>general state employees retirement plan<br/>
</td>
<td></td>
<td>4.50%<br/>
</td>
</tr>
<tr>
<td><a id="pl.49.40"></a><var>49.40</var><br/>
</td>
<td>correctional state employees retirement plan<br/>
</td>
<td></td>
<td>4.50<br/>
</td>
</tr>
<tr>
<td><a id="pl.49.41"></a><var>49.41</var><br/>
</td>
<td>State Patrol retirement plan<br/>
</td>
<td></td>
<td>4.50<br/>
</td>
</tr>
<tr>
<td><a id="pl.49.42"></a><var>49.42</var><br/>
</td>
<td>legislators retirement plan<br/>
</td>
<td></td>
<td>4.50<br/>
</td>
</tr>
<tr>
<td><a id="pl.50.1"></a><var>50.1</var><br/>
</td>
<td>judges retirement plan<br/>
</td>
<td></td>
<td>4.00<br/>
</td>
</tr>
<tr>
<td><a id="pl.50.2"></a><var>50.2</var><br/>
<a id="pl.50.3"></a><var>50.3</var><br/>
</td>
<td>general public employees retirement plan of the <br/>
Public Employees Retirement Association<br/>
</td>
<td></td>
<td>4.504.00<br/>
</td>
</tr>
<tr>
<td><a id="pl.50.4"></a><var>50.4</var><br/>
</td>
<td>public employees police and fire retirement plan<br/>
</td>
<td></td>
<td>4.50<br/>
</td>
</tr>
<tr>
<td><a id="pl.50.5"></a><var>50.5</var><br/>
<a id="pl.50.6"></a><var>50.6</var><br/>
</td>
<td>local government correctional service retirement <br/>
                  		plan<br/>
</td>
<td></td>
<td>4.50<br/>
</td>
</tr>
<tr>
<td><a id="pl.50.7"></a><var>50.7</var><br/>
</td>
<td>teachers retirement plan<br/>
</td>
<td></td>
<td>4.50<br/>
</td>
</tr>
<tr>
<td><a id="pl.50.8"></a><var>50.8</var><br/>
</td>
<td>Duluth teachers retirement plan<br/>
</td>
<td></td>
<td>4.50<br/>
</td>
</tr>
<tr>
<td><a id="pl.50.9"></a><var>50.9</var><br/>
</td>
<td>St. Paul teachers retirement plan<br/>
</td>
<td></td>
<td>5.00<br/>
</td>
</tr>
</table><a id="pl.50.10"></a><var>50.10</var>    (d) After July 1, 2010, the assumptions set forth in paragraphs (b) and (c) continue to <br/>
<a id="pl.50.11"></a><var>50.11</var>apply, unless a different salary assumption or a different payroll increase assumption:<br/>
<a id="pl.50.12"></a><var>50.12</var>    (1) has been proposed by the governing board of the applicable retirement plan;<br/>
<a id="pl.50.13"></a><var>50.13</var>    (2) is accompanied by the concurring recommendation of the actuary retained under <br/>
<a id="pl.50.14"></a><var>50.14</var>section 
         <statute_ref>356.214, subdivision 1</statute_ref>, if applicable, or by the approved actuary preparing the <br/>
<a id="pl.50.15"></a><var>50.15</var>most recent actuarial valuation report if section 
         <statute_ref>356.214</statute_ref> does not apply; and<br/>
<a id="pl.50.16"></a><var>50.16</var>    (3) has been approved or deemed approved under subdivision 18.<br/>
<a id="pl.50.17"></a><var>50.17</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.0.68.0"></a><a id="pl.50.18"></a><var>50.18</var>    Sec. 68. Minnesota Statutes 2009 Supplement, section 356.215, subdivision 11, <br/>
<a id="pl.50.19"></a><var>50.19</var>is amended to read:<br/>
<a id="pl.50.20"></a><var>50.20</var>    Subd. 11. <b>Amortization contributions.</b> (a) In addition to the exhibit indicating <br/>
<a id="pl.50.21"></a><var>50.21</var>the level normal cost, the actuarial valuation of the retirement plan must contain an <br/>
<a id="pl.50.22"></a><var>50.22</var>exhibit for financial reporting purposes indicating the additional annual contribution <br/>
<a id="pl.50.23"></a><var>50.23</var>sufficient to amortize the unfunded actuarial accrued liability and must contain an exhibit <br/>
<a id="pl.50.24"></a><var>50.24</var>for contribution determination purposes indicating the additional contribution sufficient <br/>
<a id="pl.50.25"></a><var>50.25</var>to amortize the unfunded actuarial accrued liability. For the retirement plans listed in <br/>
<a id="pl.50.26"></a><var>50.26</var>subdivision 8, paragraph (c), the additional contribution must be calculated on a level <br/>
<a id="pl.50.27"></a><var>50.27</var>percentage of covered payroll basis by the established date for full funding in effect when <br/>
<a id="pl.50.28"></a><var>50.28</var>the valuation is prepared, assuming annual payroll growth at the applicable percentage <br/>
<a id="pl.50.29"></a><var>50.29</var>rate set forth in subdivision 8, paragraph (c). For all other retirement plans, the additional <br/>
<a id="pl.50.30"></a><var>50.30</var>annual contribution must be calculated on a level annual dollar amount basis. <br/>
<a id="pl.50.31"></a><var>50.31</var>    (b) For any retirement plan other than the Minneapolis Employees Retirement Fund, <br/>
<a id="pl.50.32"></a><var>50.32</var>the general employees retirement plan of the Public Employees Retirement Association, <br/>
<a id="pl.50.33"></a><var>50.33</var>the general state employees retirement plan of the Minnesota State Retirement System, <br/>
<a id="pl.50.34"></a><var>50.34</var>and the St. Paul Teachers Retirement Fund Association, if there has not been a change in <br/>
<a id="pl.50.35"></a><var>50.35</var>the actuarial assumptions used for calculating the actuarial accrued liability of the fund, a <br/>
<a id="pl.50.36"></a><var>50.36</var>change in the benefit plan governing annuities and benefits payable from the fund, a <br/>
<a id="pl.51.1"></a><var>51.1</var>change in the actuarial cost method used in calculating the actuarial accrued liability of all <br/>
<a id="pl.51.2"></a><var>51.2</var>or a portion of the fund, or a combination of the three, which change or changes by itself <br/>
<a id="pl.51.3"></a><var>51.3</var>or by themselves without inclusion of any other items of increase or decrease produce a <br/>
<a id="pl.51.4"></a><var>51.4</var>net increase in the unfunded actuarial accrued liability of the fund, the established date for <br/>
<a id="pl.51.5"></a><var>51.5</var>full funding is the first actuarial valuation date occurring after June 1, 2020.<br/>
<a id="pl.51.6"></a><var>51.6</var>    (c) For any retirement plan other than the Minneapolis Employees Retirement <br/>
<a id="pl.51.7"></a><var>51.7</var>Fund and the general employees retirement plan of the Public Employees Retirement <br/>
<a id="pl.51.8"></a><var>51.8</var>Association, if there has been a change in any or all of the actuarial assumptions used <br/>
<a id="pl.51.9"></a><var>51.9</var>for calculating the actuarial accrued liability of the fund, a change in the benefit plan <br/>
<a id="pl.51.10"></a><var>51.10</var>governing annuities and benefits payable from the fund, a change in the actuarial cost <br/>
<a id="pl.51.11"></a><var>51.11</var>method used in calculating the actuarial accrued liability of all or a portion of the fund, <br/>
<a id="pl.51.12"></a><var>51.12</var>or a combination of the three, and the change or changes, by itself or by themselves and <br/>
<a id="pl.51.13"></a><var>51.13</var>without inclusion of any other items of increase or decrease, produce a net increase in the <br/>
<a id="pl.51.14"></a><var>51.14</var>unfunded actuarial accrued liability in the fund, the established date for full funding must <br/>
<a id="pl.51.15"></a><var>51.15</var>be determined using the following procedure:<br/>
<a id="pl.51.16"></a><var>51.16</var>    (i) the unfunded actuarial accrued liability of the fund must be determined in <br/>
<a id="pl.51.17"></a><var>51.17</var>accordance with the plan provisions governing annuities and retirement benefits and the <br/>
<a id="pl.51.18"></a><var>51.18</var>actuarial assumptions in effect before an applicable change;<br/>
<a id="pl.51.19"></a><var>51.19</var>    (ii) the level annual dollar contribution or level percentage, whichever is applicable, <br/>
<a id="pl.51.20"></a><var>51.20</var>needed to amortize the unfunded actuarial accrued liability amount determined under item <br/>
<a id="pl.51.21"></a><var>51.21</var>(i) by the established date for full funding in effect before the change must be calculated <br/>
<a id="pl.51.22"></a><var>51.22</var>using the interest assumption specified in subdivision 8 in effect before the change;<br/>
<a id="pl.51.23"></a><var>51.23</var>    (iii) the unfunded actuarial accrued liability of the fund must be determined in <br/>
<a id="pl.51.24"></a><var>51.24</var>accordance with any new plan provisions governing annuities and benefits payable from <br/>
<a id="pl.51.25"></a><var>51.25</var>the fund and any new actuarial assumptions and the remaining plan provisions governing <br/>
<a id="pl.51.26"></a><var>51.26</var>annuities and benefits payable from the fund and actuarial assumptions in effect before <br/>
<a id="pl.51.27"></a><var>51.27</var>the change;<br/>
<a id="pl.51.28"></a><var>51.28</var>    (iv) the level annual dollar contribution or level percentage, whichever is applicable, <br/>
<a id="pl.51.29"></a><var>51.29</var>needed to amortize the difference between the unfunded actuarial accrued liability amount <br/>
<a id="pl.51.30"></a><var>51.30</var>calculated under item (i) and the unfunded actuarial accrued liability amount calculated <br/>
<a id="pl.51.31"></a><var>51.31</var>under item (iii) over a period of 30 years from the end of the plan year in which the <br/>
<a id="pl.51.32"></a><var>51.32</var>applicable change is effective must be calculated using the applicable interest assumption <br/>
<a id="pl.51.33"></a><var>51.33</var>specified in subdivision 8 in effect after any applicable change;<br/>
<a id="pl.51.34"></a><var>51.34</var>    (v) the level annual dollar or level percentage amortization contribution under item <br/>
<a id="pl.51.35"></a><var>51.35</var>(iv) must be added to the level annual dollar amortization contribution or level percentage <br/>
<a id="pl.51.36"></a><var>51.36</var>calculated under item (ii);<br/>
<a id="pl.52.1"></a><var>52.1</var>    (vi) the period in which the unfunded actuarial accrued liability amount determined <br/>
<a id="pl.52.2"></a><var>52.2</var>in item (iii) is amortized by the total level annual dollar or level percentage amortization <br/>
<a id="pl.52.3"></a><var>52.3</var>contribution computed under item (v) must be calculated using the interest assumption <br/>
<a id="pl.52.4"></a><var>52.4</var>specified in subdivision 8 in effect after any applicable change, rounded to the nearest <br/>
<a id="pl.52.5"></a><var>52.5</var>integral number of years, but not to exceed 30 years from the end of the plan year in <br/>
<a id="pl.52.6"></a><var>52.6</var>which the determination of the established date for full funding using the procedure set <br/>
<a id="pl.52.7"></a><var>52.7</var>forth in this clause is made and not to be less than the period of years beginning in the <br/>
<a id="pl.52.8"></a><var>52.8</var>plan year in which the determination of the established date for full funding using the <br/>
<a id="pl.52.9"></a><var>52.9</var>procedure set forth in this clause is made and ending by the date for full funding in effect <br/>
<a id="pl.52.10"></a><var>52.10</var>before the change; and<br/>
<a id="pl.52.11"></a><var>52.11</var>    (vii) the period determined under item (vi) must be added to the date as of which <br/>
<a id="pl.52.12"></a><var>52.12</var>the actuarial valuation was prepared and the date obtained is the new established date <br/>
<a id="pl.52.13"></a><var>52.13</var>for full funding.<br/>
<a id="pl.52.14"></a><var>52.14</var>    (d) For the Minneapolis Employees Retirement Fund, the established date for full <br/>
<a id="pl.52.15"></a><var>52.15</var>funding is June 30, 2020.<br/>
<a id="pl.52.16"></a><var>52.16</var>    (e) For the general employees retirement plan of the Public Employees Retirement <br/>
<a id="pl.52.17"></a><var>52.17</var>Association, the established date for full funding is June 30, 2031.<br/>
<a id="pl.52.18"></a><var>52.18</var>    (f) For the Teachers Retirement Association, the established date for full funding is <br/>
<a id="pl.52.19"></a><var>52.19</var>June 30, 2037.<br/>
<a id="pl.52.20"></a><var>52.20</var>    (g) For the correctional state employees retirement plan of the Minnesota State <br/>
<a id="pl.52.21"></a><var>52.21</var>Retirement System, the established date for full funding is June 30, 2038.<br/>
<a id="pl.52.22"></a><var>52.22</var>    (h) For the judges retirement plan, the established date for full funding is June <br/>
<a id="pl.52.23"></a><var>52.23</var>30, 2038.<br/>
<a id="pl.52.24"></a><var>52.24</var>    (i) For the public employees police and fire retirement plan, the established date <br/>
<a id="pl.52.25"></a><var>52.25</var>for full funding is June 30, 2038.<br/>
<a id="pl.52.26"></a><var>52.26</var>    (j) For the St. Paul Teachers Retirement Fund Association, the established date for <br/>
<a id="pl.52.27"></a><var>52.27</var>full funding is June 30 of the 25th year from the valuation date. In addition to other <br/>
<a id="pl.52.28"></a><var>52.28</var>requirements of this chapter, the annual actuarial valuation shall contain an exhibit <br/>
<a id="pl.52.29"></a><var>52.29</var>indicating the funded ratio and the deficiency or sufficiency in annual contributions when <br/>
<a id="pl.52.30"></a><var>52.30</var>comparing liabilities to the market value of the assets of the fund as of the close of the <br/>
<a id="pl.52.31"></a><var>52.31</var>most recent fiscal year.<br/>
<a id="pl.52.32"></a><var>52.32</var>    (k) For the general state employees retirement plan of the Minnesota State <br/>
<a id="pl.52.33"></a><var>52.33</var>Retirement System, the established date for full funding is June 30, 2040.<br/>
<a id="pl.52.34"></a><var>52.34</var>(l) For the retirement plans for which the annual actuarial valuation indicates an <br/>
<a id="pl.52.35"></a><var>52.35</var>excess of valuation assets over the actuarial accrued liability, the valuation assets in <br/>
<a id="pl.52.36"></a><var>52.36</var>excess of the actuarial accrued liability must be recognized as a reduction in the current <br/>
<a id="pl.53.1"></a><var>53.1</var>contribution requirements by an amount equal to the amortization of the excess expressed <br/>
<a id="pl.53.2"></a><var>53.2</var>as a level percentage of pay over a 30-year period beginning anew with each annual <br/>
<a id="pl.53.3"></a><var>53.3</var>actuarial valuation of the plan.<br/>
<a id="pl.53.4"></a><var>53.4</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.0.69.0"></a><a id="pl.53.5"></a><var>53.5</var>    Sec. 69. Minnesota Statutes 2008, section 356.30, subdivision 1, is amended to read:<br/>
<a id="pl.53.6"></a><var>53.6</var>    Subdivision 1.  <b>Eligibility; computation of annuity.</b> (a) Notwithstanding any <br/>
<a id="pl.53.7"></a><var>53.7</var>provisions of the laws governing the retirement plans enumerated in subdivision 3, a <br/>
<a id="pl.53.8"></a><var>53.8</var>person who has met the qualifications of paragraph (b) may elect to receive a retirement <br/>
<a id="pl.53.9"></a><var>53.9</var>annuity from each enumerated retirement plan in which the person has at least one-half <br/>
<a id="pl.53.10"></a><var>53.10</var>year of allowable service, based on the allowable service in each plan, subject to the <br/>
<a id="pl.53.11"></a><var>53.11</var>provisions of paragraph (c). <br/>
<a id="pl.53.12"></a><var>53.12</var>(b) A person may receive, upon retirement, a retirement annuity from each <br/>
<a id="pl.53.13"></a><var>53.13</var>enumerated retirement plan in which the person has at least one-half year of allowable <br/>
<a id="pl.53.14"></a><var>53.14</var>service, and augmentation of a deferred annuity calculated at the appropriate rate under <br/>
<a id="pl.53.15"></a><var>53.15</var>the laws governing each public pension plan or fund named in subdivision 3, based on <br/>
<a id="pl.53.16"></a><var>53.16</var>the date of the person's initial entry into public employment from the date the person <br/>
<a id="pl.53.17"></a><var>53.17</var>terminated all public service if: <br/>
<a id="pl.53.18"></a><var>53.18</var>(1) the person has allowable service totaling an amount that allows the person to <br/>
<a id="pl.53.19"></a><var>53.19</var>receive an annuity in any two or more of the enumerated plans; <br/>
<a id="pl.53.20"></a><var>53.20</var>(2) the person has sufficient allowable service in total that equals or exceeds the <br/>
<a id="pl.53.21"></a><var>53.21</var>applicable service credit vesting requirement of the retirement plan with the longest <br/>
<a id="pl.53.22"></a><var>53.22</var>applicable service credit vesting requirement; and <br/>
<a id="pl.53.23"></a><var>53.23</var>(2) (3) the person has not begun to receive an annuity from any enumerated plan or <br/>
<a id="pl.53.24"></a><var>53.24</var>the person has made application for benefits from each applicable plan and the effective <br/>
<a id="pl.53.25"></a><var>53.25</var>dates of the retirement annuity with each plan under which the person chooses to receive <br/>
<a id="pl.53.26"></a><var>53.26</var>an annuity are within a one-year period. <br/>
<a id="pl.53.27"></a><var>53.27</var>(c) The retirement annuity from each plan must be based upon the allowable service, <br/>
<a id="pl.53.28"></a><var>53.28</var>accrual rates, and average salary in the applicable plan except as further specified or <br/>
<a id="pl.53.29"></a><var>53.29</var>modified in the following clauses: <br/>
<a id="pl.53.30"></a><var>53.30</var>(1) the laws governing annuities must be the law in effect on the date of termination <br/>
<a id="pl.53.31"></a><var>53.31</var>from the last period of public service under a covered retirement plan with which the <br/>
<a id="pl.53.32"></a><var>53.32</var>person earned a minimum of one-half year of allowable service credit during that <br/>
<a id="pl.53.33"></a><var>53.33</var>employment; <br/>
<a id="pl.54.1"></a><var>54.1</var>(2) the "average salary" on which the annuity from each covered plan in which <br/>
<a id="pl.54.2"></a><var>54.2</var>the employee has credit in a formula plan must be based on the employee's highest five <br/>
<a id="pl.54.3"></a><var>54.3</var>successive years of covered salary during the entire service in covered plans; <br/>
<a id="pl.54.4"></a><var>54.4</var>(3) the accrual rates to be used by each plan must be those percentages prescribed by <br/>
<a id="pl.54.5"></a><var>54.5</var>each plan's formula as continued for the respective years of allowable service from one <br/>
<a id="pl.54.6"></a><var>54.6</var>plan to the next, recognizing all previous allowable service with the other covered plans; <br/>
<a id="pl.54.7"></a><var>54.7</var>(4) the allowable service in all the plans must be combined in determining eligibility <br/>
<a id="pl.54.8"></a><var>54.8</var>for and the application of each plan's provisions in respect to reduction in the annuity <br/>
<a id="pl.54.9"></a><var>54.9</var>amount for retirement prior to normal retirement age; and <br/>
<a id="pl.54.10"></a><var>54.10</var>(5) the annuity amount payable for any allowable service under a nonformula plan <br/>
<a id="pl.54.11"></a><var>54.11</var>of a covered plan must not be affected, but such service and covered salary must be used <br/>
<a id="pl.54.12"></a><var>54.12</var>in the above calculation. <br/>
<a id="pl.54.13"></a><var>54.13</var>(d) This section does not apply to any person whose final termination from the last <br/>
<a id="pl.54.14"></a><var>54.14</var>public service under a covered plan was before May 1, 1975. <br/>
<a id="pl.54.15"></a><var>54.15</var>(e) For the purpose of computing annuities under this section, the accrual rates <br/>
<a id="pl.54.16"></a><var>54.16</var>used by any covered plan, except the public employees police and fire plan, the judges <br/>
<a id="pl.54.17"></a><var>54.17</var>retirement fund, and the State Patrol retirement plan, must not exceed the percent specified <br/>
<a id="pl.54.18"></a><var>54.18</var>in section 
         <statute_ref>356.315, subdivision 4</statute_ref>, per year of service for any year of service or fraction <br/>
<a id="pl.54.19"></a><var>54.19</var>thereof. The formula percentage used by the judges retirement fund must not exceed the <br/>
<a id="pl.54.20"></a><var>54.20</var>percentage rate specified in section 
         <statute_ref>356.315, subdivision 8</statute_ref>, per year of service for any <br/>
<a id="pl.54.21"></a><var>54.21</var>year of service or fraction thereof. The accrual rate used by the public employees police <br/>
<a id="pl.54.22"></a><var>54.22</var>and fire plan and the State Patrol retirement plan must not exceed the percentage rate <br/>
<a id="pl.54.23"></a><var>54.23</var>specified in section 
         <statute_ref>356.315, subdivision 6</statute_ref>, per year of service for any year of service or <br/>
<a id="pl.54.24"></a><var>54.24</var>fraction thereof. The accrual rate or rates used by the legislators retirement plan must not <br/>
<a id="pl.54.25"></a><var>54.25</var>exceed 2.5 percent, but this limit does not apply to the adjustment provided under section <br/>
<statute_ref><a id="pl.54.26"></a><var>54.26</var>3A.02, subdivision 1
         </statute_ref>, paragraph (c). <br/>
<a id="pl.54.27"></a><var>54.27</var>(f) Any period of time for which a person has credit in more than one of the covered <br/>
<a id="pl.54.28"></a><var>54.28</var>plans must be used only once for the purpose of determining total allowable service. <br/>
<a id="pl.54.29"></a><var>54.29</var>(g) If the period of duplicated service credit is more than one-half year, or the person <br/>
<a id="pl.54.30"></a><var>54.30</var>has credit for more than one-half year, with each of the plans, each plan must apply its <br/>
<a id="pl.54.31"></a><var>54.31</var>formula to a prorated service credit for the period of duplicated service based on a fraction <br/>
<a id="pl.54.32"></a><var>54.32</var>of the salary on which deductions were paid to that fund for the period divided by the total <br/>
<a id="pl.54.33"></a><var>54.33</var>salary on which deductions were paid to all plans for the period. <br/>
<a id="pl.54.34"></a><var>54.34</var>(h) If the period of duplicated service credit is less than one-half year, or when <br/>
<a id="pl.54.35"></a><var>54.35</var>added to other service credit with that plan is less than one-half year, the service credit <br/>
<a id="pl.55.1"></a><var>55.1</var>must be ignored and a refund of contributions made to the person in accord with that <br/>
<a id="pl.55.2"></a><var>55.2</var>plan's refund provisions. <br/>
<a id="pl.55.3"></a><var>55.3</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.0.70.0"></a><a id="pl.55.4"></a><var>55.4</var>    Sec. 70. Minnesota Statutes 2008, section 356.302, subdivision 3, is amended to read:<br/>
<a id="pl.55.5"></a><var>55.5</var>    Subd. 3. <b>General employee plan eligibility requirements.</b> A disabled member <br/>
<a id="pl.55.6"></a><var>55.6</var>of a covered retirement plan who has credit for allowable service in a combination of <br/>
<a id="pl.55.7"></a><var>55.7</var>general employee retirement plans is entitled to a combined service disability benefit <br/>
<a id="pl.55.8"></a><var>55.8</var>if the member:<br/>
<a id="pl.55.9"></a><var>55.9</var>(1) is less than the normal retirement age on the date of the application for the <br/>
<a id="pl.55.10"></a><var>55.10</var>disability benefit;<br/>
<a id="pl.55.11"></a><var>55.11</var>(2) has become totally and permanently disabled;<br/>
<a id="pl.55.12"></a><var>55.12</var>(3) has credit for allowable service in any combination of general employee <br/>
<a id="pl.55.13"></a><var>55.13</var>retirement plans totaling at least three years the number of years required by the applicable <br/>
<a id="pl.55.14"></a><var>55.14</var>retirement plan with the longest service credit requirement for disability benefit receipt;<br/>
<a id="pl.55.15"></a><var>55.15</var>(4) has credit for at least one-half year of allowable service with the current general <br/>
<a id="pl.55.16"></a><var>55.16</var>employee retirement plan before the commencement of the disability;<br/>
<a id="pl.55.17"></a><var>55.17</var>(5) has at least three continuous years of allowable service credit by the general <br/>
<a id="pl.55.18"></a><var>55.18</var>employee retirement plan or has at least a total of three years of allowable service credit <br/>
<a id="pl.55.19"></a><var>55.19</var>by a combination of general employee retirement plans in a 72-month period during <br/>
<a id="pl.55.20"></a><var>55.20</var>which no interruption of allowable service credit from a termination of employment <br/>
<a id="pl.55.21"></a><var>55.21</var>exceeded 29 days; and<br/>
<a id="pl.55.22"></a><var>55.22</var>(6) was not receiving a retirement annuity or disability benefit from any covered <br/>
<a id="pl.55.23"></a><var>55.23</var>general employee retirement plan at the time of the commencement of the disability.<br/>
<a id="pl.55.24"></a><var>55.24</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.0.71.0"></a><a id="pl.55.25"></a><var>55.25</var>    Sec. 71. Minnesota Statutes 2008, section 356.302, subdivision 4, is amended to read:<br/>
<a id="pl.55.26"></a><var>55.26</var>    Subd. 4. <b>Public safety plan eligibility requirements.</b> A disabled member of a <br/>
<a id="pl.55.27"></a><var>55.27</var>covered retirement plan who has credit for allowable service in a combination of public <br/>
<a id="pl.55.28"></a><var>55.28</var>safety employee retirement plans is entitled to a combined service disability benefit if the <br/>
<a id="pl.55.29"></a><var>55.29</var>member:<br/>
<a id="pl.55.30"></a><var>55.30</var>(1) has become occupationally disabled;<br/>
<a id="pl.55.31"></a><var>55.31</var>(2) has credit for allowable service in any combination of public safety employee <br/>
<a id="pl.55.32"></a><var>55.32</var>retirement plans totaling at least one year the minimum period of service credit required by <br/>
<a id="pl.55.33"></a><var>55.33</var>the applicable retirement plan with the longest service credit eligibility requirement for the <br/>
<a id="pl.56.1"></a><var>56.1</var>receipt of a duty-related disability benefit if the disability is duty-related or totaling at least <br/>
<a id="pl.56.2"></a><var>56.2</var>three years the minimum period of service credit required by the applicable retirement <br/>
<a id="pl.56.3"></a><var>56.3</var>plan with the longest service credit eligibility requirement for a disability benefit that is <br/>
<a id="pl.56.4"></a><var>56.4</var>not duty-related if the disability is not duty-related;<br/>
<a id="pl.56.5"></a><var>56.5</var>(3) has credit for at least one-half year of allowable service with the current public <br/>
<a id="pl.56.6"></a><var>56.6</var>safety employee retirement plan before the commencement of the disability; and<br/>
<a id="pl.56.7"></a><var>56.7</var>(4) was not receiving a retirement annuity or disability benefit from any covered <br/>
<a id="pl.56.8"></a><var>56.8</var>public safety employee retirement plan at the time of the commencement of the disability.<br/>
<a id="pl.56.9"></a><var>56.9</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.0.72.0"></a><a id="pl.56.10"></a><var>56.10</var>    Sec. 72. Minnesota Statutes 2008, section 356.302, subdivision 5, is amended to read:<br/>
<a id="pl.56.11"></a><var>56.11</var>    Subd. 5. <b>General and public safety plan eligibility requirements.</b> A disabled <br/>
<a id="pl.56.12"></a><var>56.12</var>member of a covered retirement plan who has credit for allowable service in a combination <br/>
<a id="pl.56.13"></a><var>56.13</var>of both a public safety employee retirement plan and general employee retirement plan <br/>
<a id="pl.56.14"></a><var>56.14</var>must meet the qualifying requirements in subdivisions 3 and 4 to receive a combined <br/>
<a id="pl.56.15"></a><var>56.15</var>service disability benefit from the applicable general employee and public safety <br/>
<a id="pl.56.16"></a><var>56.16</var>employee retirement plans, except that the person need only be a member of a covered <br/>
<a id="pl.56.17"></a><var>56.17</var>retirement plan at the time of the commencement of the disability, that the person must <br/>
<a id="pl.56.18"></a><var>56.18</var>have allowable service credit for the applicable retirement plan with the longest service <br/>
<a id="pl.56.19"></a><var>56.19</var>credit eligibility requirement for the receipt of a disability benefit, and that the minimum <br/>
<a id="pl.56.20"></a><var>56.20</var>allowable service requirements of subdivisions 3, clauses (3) and (5), and 4, clauses (3) <br/>
<a id="pl.56.21"></a><var>56.21</var>and (4), may be met in any combination of covered retirement plans.<br/>
<a id="pl.56.22"></a><var>56.22</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.0.73.0"></a><a id="pl.56.23"></a><var>56.23</var>    Sec. 73. Minnesota Statutes 2008, section 356.303, subdivision 2, is amended to read:<br/>
<a id="pl.56.24"></a><var>56.24</var>    Subd. 2. <b>Entitlement; eligibility.</b> Notwithstanding any provision of law to the <br/>
<a id="pl.56.25"></a><var>56.25</var>contrary governing a covered retirement plan, a person who is the survivor of a deceased <br/>
<a id="pl.56.26"></a><var>56.26</var>member of a covered retirement plan may receive a combined service survivor benefit <br/>
<a id="pl.56.27"></a><var>56.27</var>from each covered retirement plan in which the deceased member had credit for at least <br/>
<a id="pl.56.28"></a><var>56.28</var>one-half year of allowable service if the deceased member:<br/>
<a id="pl.56.29"></a><var>56.29</var>(1) had credit for sufficient allowable service in any combination of covered <br/>
<a id="pl.56.30"></a><var>56.30</var>retirement plans to meet any the minimum allowable service credit requirement of the <br/>
<a id="pl.56.31"></a><var>56.31</var>applicable covered retirement fund with the longest allowable service credit requirement <br/>
<a id="pl.56.32"></a><var>56.32</var>for qualification for a survivor benefit or annuity;<br/>
<a id="pl.57.1"></a><var>57.1</var>(2) had credit for at least one-half year of allowable service with the most recent <br/>
<a id="pl.57.2"></a><var>57.2</var>covered retirement plan before the date of death and was an active member of that covered <br/>
<a id="pl.57.3"></a><var>57.3</var>retirement plan on the date of death; and<br/>
<a id="pl.57.4"></a><var>57.4</var>(3) was not receiving a retirement annuity from any covered retirement plan on the <br/>
<a id="pl.57.5"></a><var>57.5</var>date of death.<br/>
<a id="pl.57.6"></a><var>57.6</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.0.74.0"></a><a id="pl.57.7"></a><var>57.7</var>    Sec. 74. Minnesota Statutes 2008, section 356.315, subdivision 5, is amended to read:<br/>
<a id="pl.57.8"></a><var>57.8</var>    Subd. 5. <b>Correctional plan members.</b> The applicable benefit accrual rate is 2.4 <br/>
<a id="pl.57.9"></a><var>57.9</var>percent if employed as a correctional state employee before July 1, 2010, or 2.2 percent if <br/>
<a id="pl.57.10"></a><var>57.10</var>employed as a correctional state employee after June 30, 2010.<br/>
<a id="pl.57.11"></a><var>57.11</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.0.75.0"></a><a id="pl.57.12"></a><var>57.12</var>    Sec. 75. Minnesota Statutes 2009 Supplement, section 356.415, subdivision 1, is <br/>
<a id="pl.57.13"></a><var>57.13</var>amended to read:<br/>
<a id="pl.57.14"></a><var>57.14</var>    Subdivision 1. <b>Annual postretirement adjustments</b><b>; generally</b><b>.</b> (a) Except as <br/>
<a id="pl.57.15"></a><var>57.15</var>otherwise provided in subdivision 1a, 1b, 1c, 1d, or 1e, retirement annuity, disability <br/>
<a id="pl.57.16"></a><var>57.16</var>benefit, or survivor benefit recipients of a covered retirement plan are entitled to a <br/>
<a id="pl.57.17"></a><var>57.17</var>postretirement adjustment annually on January 1, as follows:<br/>
<a id="pl.57.18"></a><var>57.18</var>(1) a postretirement increase of 2.5 percent must be applied each year, effective <br/>
<a id="pl.57.19"></a><var>57.19</var>January 1, to the monthly annuity or benefit of each annuitant or benefit recipient who has <br/>
<a id="pl.57.20"></a><var>57.20</var>been receiving an annuity or a benefit for at least 12 full months prior to the January 1 <br/>
<a id="pl.57.21"></a><var>57.21</var>increase; and<br/>
<a id="pl.57.22"></a><var>57.22</var>(2) for each annuitant or benefit recipient who has been receiving an annuity or a <br/>
<a id="pl.57.23"></a><var>57.23</var>benefit amount for at least one full month, an annual postretirement increase of 1/12 of 2.5 <br/>
<a id="pl.57.24"></a><var>57.24</var>percent for each month that the person has been receiving an annuity or benefit must be <br/>
<a id="pl.57.25"></a><var>57.25</var>applied, effective on January 1 following the calendar year in which the person has been <br/>
<a id="pl.57.26"></a><var>57.26</var>retired for less than 12 months.<br/>
<a id="pl.57.27"></a><var>57.27</var>(b) The increases provided by this section subdivision commence on January 1, 2010.<br/>
<a id="pl.57.28"></a><var>57.28</var>(c) An increase in annuity or benefit payments under this section must be made <br/>
<a id="pl.57.29"></a><var>57.29</var>automatically unless written notice is filed by the annuitant or benefit recipient with the <br/>
<a id="pl.57.30"></a><var>57.30</var>executive director of the covered retirement plan requesting that the increase not be made.<br/>
<a id="pl.57.31"></a><var>57.31</var>(d) The retirement annuity payable to a person who retires before becoming eligible <br/>
<a id="pl.57.32"></a><var>57.32</var>for Social Security benefits and who has elected the optional payment as provided in <br/>
<a id="pl.57.33"></a><var>57.33</var>section 
         <statute_ref>353.29, subdivision 6</statute_ref>, or 
<statute_ref>354.35</statute_ref> must be treated as the sum of a period certain <br/>
<a id="pl.58.1"></a><var>58.1</var>retirement annuity and a life retirement annuity for the purposes of any postretirement <br/>
<a id="pl.58.2"></a><var>58.2</var>adjustment. The period certain retirement annuity plus the life retirement annuity must be <br/>
<a id="pl.58.3"></a><var>58.3</var>the annuity amount payable until age 62 for section 
         <statute_ref>353.29, subdivision 6</statute_ref>, or age 62, 65, <br/>
<a id="pl.58.4"></a><var>58.4</var>or normal retirement age, as selected by the member at retirement, for an annuity amount <br/>
<a id="pl.58.5"></a><var>58.5</var>payable under section 
<statute_ref>354.35</statute_ref>. A postretirement adjustment granted on the period certain <br/>
<a id="pl.58.6"></a><var>58.6</var>retirement annuity must terminate when the period certain retirement annuity terminates.<br/>
<a id="pl.58.7"></a><var>58.7</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.0.76.0"></a><a id="pl.58.8"></a><var>58.8</var>    Sec. 76. Minnesota Statutes 2009 Supplement, section 356.415, is amended by adding <br/>
<a id="pl.58.9"></a><var>58.9</var>a subdivision to read:<br/>
<a id="pl.58.10"></a><var>58.10</var>    Subd. 1a. <b>Annual postretirement adjustments; Minnesota State Retirement </b><br/>
<a id="pl.58.11"></a><var>58.11</var><b>System plans other than the State Patrol retirement plan.</b> (a) Retirement annuity, <br/>
<a id="pl.58.12"></a><var>58.12</var>disability benefit, or survivor benefit recipients of the legislators retirement plan, the <br/>
<a id="pl.58.13"></a><var>58.13</var>general state employees retirement plan, the correctional state employees retirement plan, <br/>
<a id="pl.58.14"></a><var>58.14</var>the elected state officers retirement plan, the unclassified state employees retirement <br/>
<a id="pl.58.15"></a><var>58.15</var>program, and the judges retirement plan are entitled to a postretirement adjustment <br/>
<a id="pl.58.16"></a><var>58.16</var>annually on January 1, as follows:<br/>
<a id="pl.58.17"></a><var>58.17</var>(1) a postretirement increase of two percent must be applied each year, effective on <br/>
<a id="pl.58.18"></a><var>58.18</var>January 1, to the monthly annuity or benefit of each annuitant or benefit recipient who <br/>
<a id="pl.58.19"></a><var>58.19</var>has been receiving an annuity or a benefit for at least 18 full months before the January 1 <br/>
<a id="pl.58.20"></a><var>58.20</var>increase; and<br/>
<a id="pl.58.21"></a><var>58.21</var>(2) for each annuitant or benefit recipient who has been receiving an annuity or <br/>
<a id="pl.58.22"></a><var>58.22</var>a benefit for at least six full months, an annual postretirement increase of 1/12 of two <br/>
<a id="pl.58.23"></a><var>58.23</var>percent for each month that the person has been receiving an annuity or benefit must be <br/>
<a id="pl.58.24"></a><var>58.24</var>applied, effective January 1, following the calendar year in which the person has been <br/>
<a id="pl.58.25"></a><var>58.25</var>retired for at least six months, but has been retired for less than 18 months.<br/>
<a id="pl.58.26"></a><var>58.26</var>(b) The increases provided by this subdivision commence on January 1, 2011. <br/>
<a id="pl.58.27"></a><var>58.27</var>Increases under this subdivision for the general state employees retirement plan, the <br/>
<a id="pl.58.28"></a><var>58.28</var>correctional state employees retirement plan, or the judges retirement plan terminate <br/>
<a id="pl.58.29"></a><var>58.29</var>on December 31 of the calendar year in which the actuarial valuation prepared by the <br/>
<a id="pl.58.30"></a><var>58.30</var>approved actuary under sections 356.214 and 356.215 and the standards for actuarial work <br/>
<a id="pl.58.31"></a><var>58.31</var>promulgated by the Legislative Commission on Pensions and Retirement indicates that the <br/>
<a id="pl.58.32"></a><var>58.32</var>market value of assets of the retirement plan equals or exceeds 90 percent of the actuarial <br/>
<a id="pl.58.33"></a><var>58.33</var>accrued liability of the retirement plan and increases under subdivision 1 recommence <br/>
<a id="pl.58.34"></a><var>58.34</var>after that date. Increases under this subdivision for the legislators retirement plan or the <br/>
<a id="pl.58.35"></a><var>58.35</var>elected state officers retirement plan terminate on December 31 of the calendar year in <br/>
<a id="pl.59.1"></a><var>59.1</var>which the actuarial valuation prepared by the approved actuary under sections 356.214 and <br/>
<a id="pl.59.2"></a><var>59.2</var>356.215 and the standards for actuarial work promulgated by the Legislative Commission <br/>
<a id="pl.59.3"></a><var>59.3</var>on Pensions and Retirement indicates that the market value of assets of the general state <br/>
<a id="pl.59.4"></a><var>59.4</var>employees retirement plan equals or exceeds 90 percent of the actuarial accrued liability <br/>
<a id="pl.59.5"></a><var>59.5</var>of the retirement plan and increases under subdivision 1 recommence after that date.<br/>
<a id="pl.59.6"></a><var>59.6</var>(c) An increase in annuity or benefit payments under this subdivision must be made <br/>
<a id="pl.59.7"></a><var>59.7</var>automatically unless written notice is filed by the annuitant or benefit recipient with the <br/>
<a id="pl.59.8"></a><var>59.8</var>executive director of the applicable covered retirement plan requesting that the increase <br/>
<a id="pl.59.9"></a><var>59.9</var>not be made.<br/>
<a id="pl.59.10"></a><var>59.10</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.0.77.0"></a><a id="pl.59.11"></a><var>59.11</var>    Sec. 77. Minnesota Statutes 2009 Supplement, section 356.415, is amended by adding <br/>
<a id="pl.59.12"></a><var>59.12</var>a subdivision to read:<br/>
<a id="pl.59.13"></a><var>59.13</var>    Subd. 1b. <b>Annual postretirement adjustments; general employees retirement </b><br/>
<a id="pl.59.14"></a><var>59.14</var><b>plan and local government correctional retirement plan of the Public Employees </b><br/>
<a id="pl.59.15"></a><var>59.15</var><b>Retirement Association.</b> (a) Retirement annuity, disability benefit, or survivor benefit <br/>
<a id="pl.59.16"></a><var>59.16</var>recipients of the general employees retirement plan of the Public Employees Retirement <br/>
<a id="pl.59.17"></a><var>59.17</var>Association and the local government correctional service retirement plan are entitled to a <br/>
<a id="pl.59.18"></a><var>59.18</var>postretirement adjustment annually on January 1, as follows:<br/>
<a id="pl.59.19"></a><var>59.19</var>(1) for January 1, 2011, and each successive January 1 until funding stability is <br/>
<a id="pl.59.20"></a><var>59.20</var>restored for the applicable retirement plan, a postretirement increase of one percent must <br/>
<a id="pl.59.21"></a><var>59.21</var>be applied each year, effective on January 1, to the monthly annuity or benefit amount of <br/>
<a id="pl.59.22"></a><var>59.22</var>each annuitant or benefit recipient who has been receiving an annuity or benefit for at least <br/>
<a id="pl.59.23"></a><var>59.23</var>12 full months as of the current June 30; <br/>
<a id="pl.59.24"></a><var>59.24</var>(2) for January 1, 2011, and each successive January 1 until funding stability is <br/>
<a id="pl.59.25"></a><var>59.25</var>restored for the applicable retirement plan, for each annuitant or benefit recipient who has <br/>
<a id="pl.59.26"></a><var>59.26</var>been receiving an annuity or a benefit for at least one full month, but less than 12 full <br/>
<a id="pl.59.27"></a><var>59.27</var>months as of the current June 30, an annual postretirement increase of 1/12 of one percent <br/>
<a id="pl.59.28"></a><var>59.28</var>for each month the person has been receiving an annuity or benefit must be applied;<br/>
<a id="pl.59.29"></a><var>59.29</var>(3) for each January 1 following the restoration of funding stability for the applicable <br/>
<a id="pl.59.30"></a><var>59.30</var>retirement plan, a postretirement increase of 2.5 percent must be applied each year, <br/>
<a id="pl.59.31"></a><var>59.31</var>effective January 1, to the monthly annuity or benefit amount of each annuitant or benefit <br/>
<a id="pl.59.32"></a><var>59.32</var>recipient who has been receiving an annuity or benefit for at least 12 full months as of <br/>
<a id="pl.59.33"></a><var>59.33</var>the current June 30; and<br/>
<a id="pl.59.34"></a><var>59.34</var>(4) for each January 1 following restoration of funding stability for the applicable <br/>
<a id="pl.59.35"></a><var>59.35</var>retirement plan, for each annuity or benefit recipient who has been receiving an annuity or <br/>
<a id="pl.60.1"></a><var>60.1</var>a benefit for at least one full month, but less than 12 full months as of the current June <br/>
<a id="pl.60.2"></a><var>60.2</var>30, an annual postretirement increase of 1/12 of 2.5 percent for each month the person <br/>
<a id="pl.60.3"></a><var>60.3</var>has been receiving an annuity or benefit must be applied.<br/>
<a id="pl.60.4"></a><var>60.4</var>(b) Funding stability is restored when the market value of assets of the applicable <br/>
<a id="pl.60.5"></a><var>60.5</var>retirement plan equals or exceeds 90 percent of the actuarial accrued liabilities of the <br/>
<a id="pl.60.6"></a><var>60.6</var>applicable plan in the most recent prior actuarial valuation prepared under section 356.215 <br/>
<a id="pl.60.7"></a><var>60.7</var>and the standards for actuarial work by the approved actuary retained by the Public <br/>
<a id="pl.60.8"></a><var>60.8</var>Employees Retirement Association under section 356.214.<br/>
<a id="pl.60.9"></a><var>60.9</var>(c) If, after applying the increase as provided for in paragraph (a), clauses (3) <br/>
<a id="pl.60.10"></a><var>60.10</var>and (4), the market value of the applicable retirement plan is determined in the next <br/>
<a id="pl.60.11"></a><var>60.11</var>subsequent actuarial valuation prepared under section 356.215 to be less than 90 percent <br/>
<a id="pl.60.12"></a><var>60.12</var>of the actuarial accrued liability of any of the applicable Public Employees Retirement <br/>
<a id="pl.60.13"></a><var>60.13</var>Association plans, the increase provided in paragraph (a), clauses (1) and (2), are to be <br/>
<a id="pl.60.14"></a><var>60.14</var>applied as of the next successive January until funding stability is again restored.<br/>
<a id="pl.60.15"></a><var>60.15</var>(d) An increase in annuity or benefit payments under this section must be made <br/>
<a id="pl.60.16"></a><var>60.16</var>automatically unless written notice is filed by the annuitant or benefit recipient with the <br/>
<a id="pl.60.17"></a><var>60.17</var>executive director of the Public Employees Retirement Association requesting that the <br/>
<a id="pl.60.18"></a><var>60.18</var>increase not be made.<br/>
<a id="pl.60.19"></a><var>60.19</var>(e) The retirement annuity payable to a person who retires before becoming eligible <br/>
<a id="pl.60.20"></a><var>60.20</var>for Social Security benefits and who has elected the optional payment, as provided in <br/>
<a id="pl.60.21"></a><var>60.21</var>section 353.29, subdivision 6, must be treated as the sum of a period-certain retirement <br/>
<a id="pl.60.22"></a><var>60.22</var>annuity and a life retirement annuity for the purposes of any postretirement adjustment. <br/>
<a id="pl.60.23"></a><var>60.23</var>The period-certain retirement annuity plus the life retirement annuity must be the <br/>
<a id="pl.60.24"></a><var>60.24</var>annuity amount payable until age 62 for section 353.29, subdivision 6. A postretirement <br/>
<a id="pl.60.25"></a><var>60.25</var>adjustment granted on the period-certain retirement annuity must terminate when the <br/>
<a id="pl.60.26"></a><var>60.26</var>period-certain retirement annuity terminates.<br/>
<a id="pl.60.27"></a><var>60.27</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.0.78.0"></a><a id="pl.60.28"></a><var>60.28</var>    Sec. 78. Minnesota Statutes 2009 Supplement, section 356.415, is amended by adding <br/>
<a id="pl.60.29"></a><var>60.29</var>a subdivision to read:<br/>
<a id="pl.60.30"></a><var>60.30</var>    Subd. 1c. <b>Annual postretirement adjustments; PERA-P&amp;F.</b> (a) Retirement <br/>
<a id="pl.60.31"></a><var>60.31</var>annuity, disability benefit, or survivor benefit recipients of the public employees police <br/>
<a id="pl.60.32"></a><var>60.32</var>and fire retirement plan are entitled to a postretirement adjustment annually on January <br/>
<a id="pl.60.33"></a><var>60.33</var>1, as follows:<br/>
<a id="pl.61.1"></a><var>61.1</var>(1) for January 1, 2011, and for January 1, 2012, for each annuitant or benefit <br/>
<a id="pl.61.2"></a><var>61.2</var>recipient who has been receiving the annuity or benefit for at least 12 full months as of the <br/>
<a id="pl.61.3"></a><var>61.3</var>immediate preceding June 30, an amount equal to one percent in each year;<br/>
<a id="pl.61.4"></a><var>61.4</var>(2) for January 1, 2011, and for January 1, 2012, for each annuitant or benefit <br/>
<a id="pl.61.5"></a><var>61.5</var>recipient who has been receiving the annuity or benefit for at least one full month as of the <br/>
<a id="pl.61.6"></a><var>61.6</var>immediate preceding June 30, an amount equal to 1/12 of one percent in each year;<br/>
<a id="pl.61.7"></a><var>61.7</var>(3) for January 1, 2013, and each successive January 1 that follows the loss of <br/>
<a id="pl.61.8"></a><var>61.8</var>funding stability as defined under paragraph (b) until funding stability as defined under <br/>
<a id="pl.61.9"></a><var>61.9</var>paragraph (b) is again restored, for each annuitant or benefit recipient who has been <br/>
<a id="pl.61.10"></a><var>61.10</var>receiving the annuity or benefit for at least 12 full months as of the immediate preceding <br/>
<a id="pl.61.11"></a><var>61.11</var>June 30, an amount equal to the percentage increase in the Consumer Price Index for <br/>
<a id="pl.61.12"></a><var>61.12</var>urban wage earners and clerical workers all items index published by the Bureau of Labor <br/>
<a id="pl.61.13"></a><var>61.13</var>Statistics of the United States Department of Labor between the immediate preceding June <br/>
<a id="pl.61.14"></a><var>61.14</var>30 and the June 30 occurring 12 months previous, but not to exceed 1.5 percent;<br/>
<a id="pl.61.15"></a><var>61.15</var>(4) for January 1, 2013, and each successive January 1 that follows the loss of <br/>
<a id="pl.61.16"></a><var>61.16</var>funding stability as defined under paragraph (b) until funding stability as defined under <br/>
<a id="pl.61.17"></a><var>61.17</var>paragraph (b) is again restored, for each annuitant or benefit recipient who has been <br/>
<a id="pl.61.18"></a><var>61.18</var>receiving the annuity or benefit for at least one full month as of the immediate preceding <br/>
<a id="pl.61.19"></a><var>61.19</var>June 30, an amount equal to 1/12 of the percentage increase in the Consumer Price Index <br/>
<a id="pl.61.20"></a><var>61.20</var>for urban wage earners and clerical workers-all items published by the Bureau of Labor <br/>
<a id="pl.61.21"></a><var>61.21</var>Statistics of the United States Department of Labor between the immediate preceding <br/>
<a id="pl.61.22"></a><var>61.22</var>June 30 and the June 30 occurring 12 months previous for each full month of annuity <br/>
<a id="pl.61.23"></a><var>61.23</var>or benefit receipt, but not to exceed 1/12 of 1.5 percent for each full month of annuity <br/>
<a id="pl.61.24"></a><var>61.24</var>or benefit receipt;<br/>
<a id="pl.61.25"></a><var>61.25</var>(5) for each January 1 following the restoration of funding stability as defined <br/>
<a id="pl.61.26"></a><var>61.26</var>under paragraph (b) and during the continuation of funding stability as defined under <br/>
<a id="pl.61.27"></a><var>61.27</var>paragraph (b), for each annuitant or benefit recipient who has been receiving the annuity <br/>
<a id="pl.61.28"></a><var>61.28</var>or benefit for at least 12 full months as of the immediate preceding June 30, an amount <br/>
<a id="pl.61.29"></a><var>61.29</var>equal to the percentage increase in the Consumer Price Index for urban wage earners and <br/>
<a id="pl.61.30"></a><var>61.30</var>clerical workers-all items published by the Bureau of Labor Statistics of the United States <br/>
<a id="pl.61.31"></a><var>61.31</var>Department of Labor between the immediate preceding June 30 and the June 30 occurring <br/>
<a id="pl.61.32"></a><var>61.32</var>12 months previous, but not to exceed 2.5 percent; and<br/>
<a id="pl.61.33"></a><var>61.33</var>(6) for each January 1 following the restoration of funding stability as defined under <br/>
<a id="pl.61.34"></a><var>61.34</var>paragraph (b) and during the continuation of funding stability as defined under paragraph <br/>
<a id="pl.61.35"></a><var>61.35</var>(b), for each annuitant or benefit recipient who has been receiving the annuity or benefit <br/>
<a id="pl.61.36"></a><var>61.36</var>for at least one full month as of the immediate preceding June 30, an amount equal to <br/>
<a id="pl.62.1"></a><var>62.1</var>1/12 of the percentage increase in the Consumer Price Index for urban wage earners and <br/>
<a id="pl.62.2"></a><var>62.2</var>clerical workers-all items published by the Bureau of Labor Statistics of the United States <br/>
<a id="pl.62.3"></a><var>62.3</var>Department of Labor between the immediate preceding June 30 and the June 30 occurring <br/>
<a id="pl.62.4"></a><var>62.4</var>12 months previous for each full month of annuity or benefit receipt, but not to exceed <br/>
<a id="pl.62.5"></a><var>62.5</var>1/12 of 2.5 percent for each full month of annuity or benefit receipt.<br/>
<a id="pl.62.6"></a><var>62.6</var>(b) Funding stability is restored when the market value of assets of the public <br/>
<a id="pl.62.7"></a><var>62.7</var>employees police and fire retirement plan equals or exceeds 90 percent of the actuarial <br/>
<a id="pl.62.8"></a><var>62.8</var>accrued liabilities of the applicable plan in the most recent prior actuarial valuation <br/>
<a id="pl.62.9"></a><var>62.9</var>prepared under section 356.215 and under the standards for actuarial work of the <br/>
<a id="pl.62.10"></a><var>62.10</var>Legislative Commission and Pensions and Retirement by the approved actuary retained by <br/>
<a id="pl.62.11"></a><var>62.11</var>the Public Employees Retirement Association under section 356.214.<br/>
<a id="pl.62.12"></a><var>62.12</var>(c) An increase in annuity or benefit payments under this section must be made <br/>
<a id="pl.62.13"></a><var>62.13</var>automatically unless written notice is filed by the annuitant or benefit recipient with the <br/>
<a id="pl.62.14"></a><var>62.14</var>executive director of the Public Employees Retirement Association requesting that the <br/>
<a id="pl.62.15"></a><var>62.15</var>increase not be made.<br/>
<a id="pl.62.16"></a><var>62.16</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.0.79.0"></a><a id="pl.62.17"></a><var>62.17</var>    Sec. 79. Minnesota Statutes 2009 Supplement, section 356.415, is amended by adding <br/>
<a id="pl.62.18"></a><var>62.18</var>a subdivision to read:<br/>
<a id="pl.62.19"></a><var>62.19</var>    Subd. 1d. <b>Teachers Retirement Association annual postretirement adjustments.</b><br/>
<a id="pl.62.20"></a><var>62.20</var>(a) Retirement annuity, disability benefit, or survivor benefit recipients of the Teachers <br/>
<a id="pl.62.21"></a><var>62.21</var>Retirement Association are entitled to a postretirement adjustment annually on January <br/>
<a id="pl.62.22"></a><var>62.22</var>1, as follows:<br/>
<a id="pl.62.23"></a><var>62.23</var>(1) for January 1, 2011, and January 1, 2012, no postretirement increase is payable;<br/>
<a id="pl.62.24"></a><var>62.24</var>(2) for January 1, 2013, and each successive January 1 until funding stability is <br/>
<a id="pl.62.25"></a><var>62.25</var>restored, a postretirement increase of two percent must be applied each year, effective on <br/>
<a id="pl.62.26"></a><var>62.26</var>January 1, to the monthly annuity or benefit amount of each annuitant or benefit recipient <br/>
<a id="pl.62.27"></a><var>62.27</var>who has been receiving an annuity or a benefit for at least 18 full months prior to the <br/>
<a id="pl.62.28"></a><var>62.28</var>January 1 increase;<br/>
<a id="pl.62.29"></a><var>62.29</var>(3) for January 1, 2013, and each successive January 1 until funding stability is <br/>
<a id="pl.62.30"></a><var>62.30</var>restored, for each annuitant or benefit recipient who has been receiving an annuity or <br/>
<a id="pl.62.31"></a><var>62.31</var>a benefit for at least six full months, an annual postretirement increase of 1/12 of two <br/>
<a id="pl.62.32"></a><var>62.32</var>percent for each month the person has been receiving an annuity or benefit must be <br/>
<a id="pl.62.33"></a><var>62.33</var>applied, effective January 1, following the year in which the person has been retired <br/>
<a id="pl.62.34"></a><var>62.34</var>for less than 12 months;<br/>
<a id="pl.63.1"></a><var>63.1</var>(4) for each January 1 following the restoration of funding stability, a postretirement <br/>
<a id="pl.63.2"></a><var>63.2</var>increase of 2.5 percent must be applied each year, effective January 1, to the monthly <br/>
<a id="pl.63.3"></a><var>63.3</var>annuity or benefit amount of each annuitant or benefit recipient who has been receiving an <br/>
<a id="pl.63.4"></a><var>63.4</var>annuity or a benefit for at least 18 full months prior to the January 1 increase; and<br/>
<a id="pl.63.5"></a><var>63.5</var>(5) for each January 1 following the restoration of funding stability, for each <br/>
<a id="pl.63.6"></a><var>63.6</var>annuitant or benefit recipient who has been receiving an annuity or a benefit for at least <br/>
<a id="pl.63.7"></a><var>63.7</var>six full months, an annual postretirement increase of 1/12 of 2.5 percent for each month <br/>
<a id="pl.63.8"></a><var>63.8</var>the person has been receiving an annuity or benefit must be applied, effective January 1, <br/>
<a id="pl.63.9"></a><var>63.9</var>following the year in which the person has been retired for less than 12 months.<br/>
<a id="pl.63.10"></a><var>63.10</var>(b) Funding stability is restored when the market value of assets of the Teachers <br/>
<a id="pl.63.11"></a><var>63.11</var>Retirement Association equals or exceeds 90 percent of the actuarial accrued liabilities of <br/>
<a id="pl.63.12"></a><var>63.12</var>the Teachers Retirement Association in the most recent prior actuarial valuation prepared <br/>
<a id="pl.63.13"></a><var>63.13</var>under section 356.215 and the standards for actuarial work by the approved actuary <br/>
<a id="pl.63.14"></a><var>63.14</var>retained by the Teachers Retirement Association under section 356.214.<br/>
<a id="pl.63.15"></a><var>63.15</var>(c) An increase in annuity or benefit payments under this section must be made <br/>
<a id="pl.63.16"></a><var>63.16</var>automatically unless written notice is filed by the annuitant or benefit recipient with the <br/>
<a id="pl.63.17"></a><var>63.17</var>executive director of the Teachers Retirement Association requesting that the increase <br/>
<a id="pl.63.18"></a><var>63.18</var>not be made.<br/>
<a id="pl.63.19"></a><var>63.19</var>(d) The retirement annuity payable to a person who retires before becoming eligible <br/>
<a id="pl.63.20"></a><var>63.20</var>for Social Security benefits and who has elected the optional payment as provided in <br/>
<a id="pl.63.21"></a><var>63.21</var>section 354.35 must be treated as the sum of a period-certain retirement annuity and a life <br/>
<a id="pl.63.22"></a><var>63.22</var>retirement annuity for the purposes of any postretirement adjustment. The period-certain <br/>
<a id="pl.63.23"></a><var>63.23</var>retirement annuity plus the life retirement annuity must be the annuity amount payable <br/>
<a id="pl.63.24"></a><var>63.24</var>until age 62, 65, or normal retirement age, as selected by the member at retirement, for an <br/>
<a id="pl.63.25"></a><var>63.25</var>annuity amount payable under section 354.35. A postretirement adjustment granted on <br/>
<a id="pl.63.26"></a><var>63.26</var>the period-certain retirement annuity must terminate when the period-certain retirement <br/>
<a id="pl.63.27"></a><var>63.27</var>annuity terminates.<br/>
<a id="pl.63.28"></a><var>63.28</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.0.80.0"></a><a id="pl.63.29"></a><var>63.29</var>    Sec. 80. Minnesota Statutes 2009 Supplement, section 356.415, is amended by adding <br/>
<a id="pl.63.30"></a><var>63.30</var>a subdivision to read:<br/>
<a id="pl.63.31"></a><var>63.31</var>    Subd. 1e. <b>Annual postretirement adjustments; State Patrol retirement plan.</b><br/>
<a id="pl.63.32"></a><var>63.32</var>(a) Retirement annuity, disability benefit, or survivor benefit recipients of the State Patrol <br/>
<a id="pl.63.33"></a><var>63.33</var>retirement plan are entitled to a postretirement adjustment annually on January 1, as <br/>
<a id="pl.63.34"></a><var>63.34</var>follows:<br/>
<a id="pl.64.1"></a><var>64.1</var>(1) a postretirement increase of 1.5 percent must be applied each year, effective on <br/>
<a id="pl.64.2"></a><var>64.2</var>January 1, to the monthly annuity or benefit of each annuitant or benefit recipient who <br/>
<a id="pl.64.3"></a><var>64.3</var>has been receiving an annuity or a benefit for at least 18 full months before the January 1 <br/>
<a id="pl.64.4"></a><var>64.4</var>increase; and<br/>
<a id="pl.64.5"></a><var>64.5</var>(2) for each annuitant or benefit recipient who has been receiving an annuity or a <br/>
<a id="pl.64.6"></a><var>64.6</var>benefit for at least six full months, an annual postretirement increase of 1/12 of 1.5 percent <br/>
<a id="pl.64.7"></a><var>64.7</var>for each month that the person has been receiving an annuity or benefit must be applied, <br/>
<a id="pl.64.8"></a><var>64.8</var>effective January 1, following the calendar year in which the person has been retired for at <br/>
<a id="pl.64.9"></a><var>64.9</var>least six months, but has been retired for less than 18 months.<br/>
<a id="pl.64.10"></a><var>64.10</var>(b) The increases provided by this subdivision commence on January 1, 2011. <br/>
<a id="pl.64.11"></a><var>64.11</var>Increases under this subdivision for the State Patrol retirement plan terminate on December <br/>
<a id="pl.64.12"></a><var>64.12</var>31 of the calendar year in which the actuarial valuation prepared by the approved actuary <br/>
<a id="pl.64.13"></a><var>64.13</var>under sections 356.214 and 356.215 and the standards for actuarial work promulgated by <br/>
<a id="pl.64.14"></a><var>64.14</var>the Legislative Commission on Pensions and Retirement indicates that the market value of <br/>
<a id="pl.64.15"></a><var>64.15</var>assets of the retirement plan equals or exceeds 90 percent of the actuarial accrued liability <br/>
<a id="pl.64.16"></a><var>64.16</var>of the retirement plan and increases under subdivision 1 recommence after that date.<br/>
<a id="pl.64.17"></a><var>64.17</var>(c) An increase in annuity or benefit payments under this subdivision must be made <br/>
<a id="pl.64.18"></a><var>64.18</var>automatically unless written notice is filed by the annuitant or benefit recipient with the <br/>
<a id="pl.64.19"></a><var>64.19</var>executive director of the applicable covered retirement plan requesting that the increase <br/>
<a id="pl.64.20"></a><var>64.20</var>not be made.<br/>
<a id="pl.64.21"></a><var>64.21</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.0.81.0"></a><a id="pl.64.22"></a><var>64.22</var>    Sec. 81. Minnesota Statutes 2008, section 356.47, subdivision 3, is amended to read:<br/>
<a id="pl.64.23"></a><var>64.23</var>    Subd. 3. <b>Payment.</b> (a) Beginning one year after the reemployment withholding <br/>
<a id="pl.64.24"></a><var>64.24</var>period ends relating to the reemployment that gave rise to the limitation, and the filing of a <br/>
<a id="pl.64.25"></a><var>64.25</var>written application, the retired member is entitled to the payment, in a lump sum, of the <br/>
<a id="pl.64.26"></a><var>64.26</var>value of the person's amount under subdivision 2, plus annual compound interest at. For <br/>
<a id="pl.64.27"></a><var>64.27</var>the general state employees retirement plan, the correctional state employees retirement <br/>
<a id="pl.64.28"></a><var>64.28</var>plan, the general employees retirement plan of the Public Employees Retirement <br/>
<a id="pl.64.29"></a><var>64.29</var>Association, the public employees police and fire retirement plan, the local government <br/>
<a id="pl.64.30"></a><var>64.30</var>correctional employees retirement plan, and the teachers retirement plan, the annual <br/>
<a id="pl.64.31"></a><var>64.31</var>interest rate is six percent from the date on which the amount was deducted from the <br/>
<a id="pl.64.32"></a><var>64.32</var>retirement annuity to the date of payment or until January 1, 2011, whichever is earlier, and <br/>
<a id="pl.64.33"></a><var>64.33</var>no interest after January 1, 2011. For the Duluth Teachers Retirement Fund Association, <br/>
<a id="pl.64.34"></a><var>64.34</var>the annual interest is six percent from the date on which the amount was deducted from the <br/>
<a id="pl.64.35"></a><var>64.35</var>retirement annuity to the date of payment or until June 30, 2010, whichever is earlier, and <br/>
<a id="pl.65.1"></a><var>65.1</var>no interest after June 30, 2010. For the St. Paul Teachers Retirement Fund Association, <br/>
<a id="pl.65.2"></a><var>65.2</var>the annual interest is the compound annual rate of six percent from the date that the <br/>
<a id="pl.65.3"></a><var>65.3</var>amount was deducted from the retirement annuity to the date of payment.<br/>
<a id="pl.65.4"></a><var>65.4</var>    (b) The written application must be on a form prescribed by the chief administrative <br/>
<a id="pl.65.5"></a><var>65.5</var>officer of the applicable retirement plan.<br/>
<a id="pl.65.6"></a><var>65.6</var>    (c) If the retired member dies before the payment provided for in paragraph (a) is <br/>
<a id="pl.65.7"></a><var>65.7</var>made, the amount is payable, upon written application, to the deceased person's surviving <br/>
<a id="pl.65.8"></a><var>65.8</var>spouse, or if none, to the deceased person's designated beneficiary, or if none, to the <br/>
<a id="pl.65.9"></a><var>65.9</var>deceased person's estate.<br/>
<a id="pl.65.10"></a><var>65.10</var>    (d) In lieu of the direct payment of the person's amount under subdivision 2, on <br/>
<a id="pl.65.11"></a><var>65.11</var>or after the payment date under paragraph (a), if the federal Internal Revenue Code so <br/>
<a id="pl.65.12"></a><var>65.12</var>permits, the retired member may elect to have all or any portion of the payment amount <br/>
<a id="pl.65.13"></a><var>65.13</var>under this section paid in the form of a direct rollover to an eligible retirement plan as <br/>
<a id="pl.65.14"></a><var>65.14</var>defined in section 402(c) of the federal Internal Revenue Code that is specified by the <br/>
<a id="pl.65.15"></a><var>65.15</var>retired member. If the retired member dies with a balance remaining payable under this <br/>
<a id="pl.65.16"></a><var>65.16</var>section, the surviving spouse of the retired member, or if none, the deceased person's <br/>
<a id="pl.65.17"></a><var>65.17</var>designated beneficiary, or if none, the administrator of the deceased person's estate may <br/>
<a id="pl.65.18"></a><var>65.18</var>elect a direct rollover under this paragraph.<br/>
<a id="pl.65.19"></a><var>65.19</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.0.82.0"></a><a id="pl.65.20"></a><var>65.20</var>    Sec. 82. Minnesota Statutes 2009 Supplement, section 423A.02, subdivision 3, is <br/>
<a id="pl.65.21"></a><var>65.21</var>amended to read:<br/>
<a id="pl.65.22"></a><var>65.22</var>    Subd. 3. <b>Reallocation of amortization or supplementary amortization state </b><br/>
<a id="pl.65.23"></a><var>65.23</var><b>aid.</b> (a) Seventy percent of the difference between $5,720,000 and the current year <br/>
<a id="pl.65.24"></a><var>65.24</var>amortization aid and supplemental amortization aid distributed under subdivisions 1 <br/>
<a id="pl.65.25"></a><var>65.25</var>and 1a that is not distributed for any reason to a municipality for use by a local police <br/>
<a id="pl.65.26"></a><var>65.26</var>or salaried fire relief association must be distributed by the commissioner of revenue <br/>
<a id="pl.65.27"></a><var>65.27</var>according to this paragraph. The commissioner shall distribute 50 percent of the amounts <br/>
<a id="pl.65.28"></a><var>65.28</var>derived under this paragraph to the Teachers Retirement Association, ten percent to the <br/>
<a id="pl.65.29"></a><var>65.29</var>Duluth Teachers Retirement Fund Association, and 40 percent to the St. Paul Teachers <br/>
<a id="pl.65.30"></a><var>65.30</var>Retirement Fund Association to fund the unfunded actuarial accrued liabilities of the <br/>
<a id="pl.65.31"></a><var>65.31</var>respective funds. These payments shall be made on or before June 30 each fiscal year. If <br/>
<a id="pl.65.32"></a><var>65.32</var>the St. Paul Teachers Retirement Fund Association becomes fully funded, its eligibility <br/>
<a id="pl.65.33"></a><var>65.33</var>for this aid ceases. Amounts remaining in the undistributed balance account at the end of <br/>
<a id="pl.65.34"></a><var>65.34</var>the biennium if aid eligibility ceases cancel to the general fund.<br/>
<a id="pl.66.1"></a><var>66.1</var>    (b) In order to receive amortization and supplementary amortization aid under <br/>
<a id="pl.66.2"></a><var>66.2</var>paragraph (a), Independent School District No. 625, St. Paul, must make contributions <br/>
<a id="pl.66.3"></a><var>66.3</var>to the St. Paul Teachers Retirement Fund Association in accordance with the following <br/>
<a id="pl.66.4"></a><var>66.4</var>schedule:<br/>
<table>
<col width="50px"/>
<col width="15"/>
<col width="26"/>
<col width="3"/>
<col width="9"/>
<col width="12"/>
<tr>
<td><a id="pl.66.5"></a><var>66.5</var><br/>
</td>
<td></td>
<td>Fiscal Year<br/>
</td>
<td></td>
<td align="center">Amount<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.66.6"></a><var>66.6</var><br/>
</td>
<td></td>
<td>1996<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">0<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.66.7"></a><var>66.7</var><br/>
</td>
<td></td>
<td>1997<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">0<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.66.8"></a><var>66.8</var><br/>
</td>
<td></td>
<td>1998<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">200,000<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.66.9"></a><var>66.9</var><br/>
</td>
<td></td>
<td>1999<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">400,000<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.66.10"></a><var>66.10</var><br/>
</td>
<td></td>
<td>2000<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">600,000<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.66.11"></a><var>66.11</var><br/>
</td>
<td></td>
<td>2001 and thereafter<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">800,000<br/>
</td>
<td></td>
</tr>
</table><a id="pl.66.12"></a><var>66.12</var>    (c) Special School District No. 1, Minneapolis, and the city of Minneapolis must <br/>
<a id="pl.66.13"></a><var>66.13</var>each make contributions to the Teachers Retirement Association in accordance with the <br/>
<a id="pl.66.14"></a><var>66.14</var>following schedule:<br/>
<table>
<col width="50px"/>
<col width="5"/>
<col width="20"/>
<col width="2.5"/>
<col width="9"/>
<col width="10"/>
<col width="2.5"/>
<col width="9"/>
<col width="7"/>
<tr>
<td><a id="pl.66.15"></a><var>66.15</var><br/>
<a id="pl.66.16"></a><var>66.16</var><br/>
</td>
<td></td>
<td valign="top">Fiscal Year<br/>
</td>
<td align="center" colspan="2" valign="top">City amount<br/>
</td>
<td></td>
<td align="center" colspan="2" valign="top">School district <br/>
                  		amount<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.66.17"></a><var>66.17</var><br/>
</td>
<td></td>
<td>1996<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">0<br/>
</td>
<td></td>
<td align="right">$<br/>
</td>
<td align="right">0<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.66.18"></a><var>66.18</var><br/>
</td>
<td></td>
<td>1997<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">0<br/>
</td>
<td></td>
<td align="right">$<br/>
</td>
<td align="right" valign="bottom">0<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.66.19"></a><var>66.19</var><br/>
</td>
<td></td>
<td>1998<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">250,000<br/>
</td>
<td></td>
<td align="right">$<br/>
</td>
<td align="right">250,000<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.66.20"></a><var>66.20</var><br/>
</td>
<td></td>
<td>1999<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">400,000<br/>
</td>
<td></td>
<td align="right">$<br/>
</td>
<td align="right">400,000<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.66.21"></a><var>66.21</var><br/>
</td>
<td></td>
<td>2000<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">550,000<br/>
</td>
<td></td>
<td align="right">$<br/>
</td>
<td align="right">550,000<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.66.22"></a><var>66.22</var><br/>
</td>
<td></td>
<td>2001<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">700,000<br/>
</td>
<td></td>
<td align="right">$<br/>
</td>
<td align="right">700,000<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.66.23"></a><var>66.23</var><br/>
</td>
<td></td>
<td>2002<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">850,000<br/>
</td>
<td></td>
<td align="right">$<br/>
</td>
<td align="right">850,000<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.66.24"></a><var>66.24</var><br/>
</td>
<td></td>
<td>2003 and thereafter<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">1,000,000<br/>
</td>
<td></td>
<td align="right">$<br/>
</td>
<td align="right">1,000,000<br/>
</td>
<td></td>
</tr>
</table><a id="pl.66.25"></a><var>66.25</var>    (d) Money contributed under paragraph (a) and either paragraph (b) or (c), as <br/>
<a id="pl.66.26"></a><var>66.26</var>applicable, must be credited to a separate account in the applicable teachers retirement <br/>
<a id="pl.66.27"></a><var>66.27</var>fund and may not be used in determining any benefit increases. The separate account <br/>
<a id="pl.66.28"></a><var>66.28</var>terminates for a fund when the aid payments to the fund under paragraph (a) cease.<br/>
<a id="pl.66.29"></a><var>66.29</var>    (e) (d) Thirty percent of the difference between $5,720,000 and the current year <br/>
<a id="pl.66.30"></a><var>66.30</var>amortization aid and supplemental amortization aid under subdivisions 1 and 1a that is not <br/>
<a id="pl.66.31"></a><var>66.31</var>distributed for any reason to a municipality for use by a local police or salaried firefighter <br/>
<a id="pl.66.32"></a><var>66.32</var>relief association must be distributed under section 
         <statute_ref>69.021, subdivision 7</statute_ref>, paragraph (d), <br/>
<a id="pl.66.33"></a><var>66.33</var>as additional funding to support a minimum fire state aid amount for volunteer firefighter <br/>
<a id="pl.66.34"></a><var>66.34</var>relief associations.<br/>
<a id="pl.66.35"></a><var>66.35</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.0.83.0"></a><a id="pl.66.36"></a><var>66.36</var>    Sec. 83. <b>LOCAL RETIREMENT FUND INVESTMENT AUTHORITIES </b><br/>
<a id="pl.66.37"></a><var>66.37</var><b>STUDY.</b><br/>
<a id="pl.67.1"></a><var>67.1</var>A study group consisting of representatives from pension plans subject to Minnesota <br/>
<a id="pl.67.2"></a><var>67.2</var>Statutes, section 356A.06, subdivision 6 or 7, shall be convened by the state auditor to <br/>
<a id="pl.67.3"></a><var>67.3</var>study investment-related provisions, authorities, and limitations under Minnesota Statutes, <br/>
<a id="pl.67.4"></a><var>67.4</var>chapter 356A, and related sections of other chapters. Administrative support for the <br/>
<a id="pl.67.5"></a><var>67.5</var>study group shall be provided by the state auditor. The study group shall prepare a <br/>
<a id="pl.67.6"></a><var>67.6</var>report to include an assessment of the effectiveness of current statutory prescriptions, <br/>
<a id="pl.67.7"></a><var>67.7</var>options for change, and recommendations for consideration by the governor and the <br/>
<a id="pl.67.8"></a><var>67.8</var>legislature during the 2011 legislative session. The report will be provided no later than <br/>
<a id="pl.67.9"></a><var>67.9</var>January 15, 2011, to the executive director of the Legislative Commission on Pensions and <br/>
<a id="pl.67.10"></a><var>67.10</var>Retirement, the chair and ranking minority caucus member of the senate State and Local <br/>
<a id="pl.67.11"></a><var>67.11</var>Government Operations and Oversight Committee, and the chair and ranking minority <br/>
<a id="pl.67.12"></a><var>67.12</var>caucus member of the house State and Local Government Operations Reform, Technology <br/>
<a id="pl.67.13"></a><var>67.13</var>and Elections Committee.<br/>
<a id="pl.67.14"></a><var>67.14</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.0.84.0"></a><a id="pl.67.15"></a><var>67.15</var>    Sec. 84. <b>BYLAW AUTHORIZATION.</b><br/>
<a id="pl.67.16"></a><var>67.16</var>Consistent with the requirements of Minnesota Statutes, section 354A.12, <br/>
<a id="pl.67.17"></a><var>67.17</var>subdivision 4, the board of the Duluth Teachers Retirement Fund Association is authorized <br/>
<a id="pl.67.18"></a><var>67.18</var>to revise the bylaws or articles of incorporation so that the requirements of this act apply <br/>
<a id="pl.67.19"></a><var>67.19</var>to the old law coordinated program.<br/>
<a id="pl.67.20"></a><var>67.20</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.0.85.0"></a><a id="pl.67.21"></a><var>67.21</var>    Sec. 85. <b> REPEALER.</b><br/>
<a id="pl.67.22"></a><var>67.22</var>Minnesota Statutes 2008, section 354A.27, subdivision 1, is repealed.<br/>
<a id="pl.67.23"></a><var>67.23</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2010.<br/>