<a id="pl.1.3"></a><var>1.3</var>rates; suspending certain post-retirement adjustments; reducing certain <br/>
<a id="pl.1.4"></a><var>1.4</var>postretirement adjustment increase rates; reducing interest rates on refunds; <br/>
<a id="pl.1.5"></a><var>1.5</var>reducing deferred annuity augmentation rates; eliminating interest on reemployed <br/>
<a id="pl.1.6"></a><var>1.6</var>annuitant earnings limitation deferred accounts; increasing certain vesting <br/>
<a id="pl.1.7"></a><var>1.7</var>requirements; increasing certain early retirement reduction rates; reducing <br/>
<a id="pl.1.8"></a><var>1.8</var>certain benefit accrual rates; extending certain amortization periods; making <br/>
<a id="pl.1.9"></a><var>1.9</var>changes of an administrative nature for retirement plans administered by the <br/>
<a id="pl.1.10"></a><var>1.10</var>Minnesota State Retirement Association; revising insurance withholding for <br/>
<a id="pl.1.11"></a><var>1.11</var>certain retired public employees; authorizing state patrol plan service credit for <br/>
<a id="pl.1.12"></a><var>1.12</var>leave procedures; addressing plan coverage errors and omitted contributions; <br/>
<a id="pl.1.13"></a><var>1.13</var>revising unlawful discharge annuity repayment requirements; requiring <br/>
<a id="pl.1.14"></a><var>1.14</var>employment unit accommodation of daily valuation of investment accounts; <br/>
<a id="pl.1.15"></a><var>1.15</var>eliminating administrative fee maximum for the unclassified state employees <br/>
<a id="pl.1.16"></a><var>1.16</var>retirement program; making changes of an administrative nature in the general <br/>
<a id="pl.1.17"></a><var>1.17</var>employees retirement plan of the Public Employees Retirement Association, the <br/>
<a id="pl.1.18"></a><var>1.18</var>public employees police and fire retirement plan, and the defined contribution <br/>
<a id="pl.1.19"></a><var>1.19</var>retirement plan; making various administrative modifications in the voluntary <br/>
<a id="pl.1.20"></a><var>1.20</var>statewide lump-sum volunteer firefighter retirement plan of the Public Employees <br/>
<a id="pl.1.21"></a><var>1.21</var>Retirement Association; revising purchase of salary credit procedures in certain <br/>
<a id="pl.1.22"></a><var>1.22</var>partial salary situations; adding new partial salary credit purchase authority for <br/>
<a id="pl.1.23"></a><var>1.23</var>partial paid medical leaves and budgetary leaves; redefining TRA allowable <br/>
<a id="pl.1.24"></a><var>1.24</var>service credit; defining annual base salary; requiring base salary reporting by <br/>
<a id="pl.1.25"></a><var>1.25</var>TRA-covered employing units; making changes of an administrative nature in the <br/>
<a id="pl.1.26"></a><var>1.26</var>Minnesota State Colleges and Universities System individual retirement account <br/>
<a id="pl.1.27"></a><var>1.27</var>plan; setting deadline dates for actuarial reporting; extending and revising an <br/>
<a id="pl.1.28"></a><var>1.28</var>early retirement incentive program; permitting the court-ordered revocation of <br/>
<a id="pl.1.29"></a><var>1.29</var>an optional annuity election in certain marriage dissolutions; transfer of the <br/>
<a id="pl.1.30"></a><var>1.30</var>administrative functions of the Minneapolis Employees Retirement Fund to the <br/>
<a id="pl.1.31"></a><var>1.31</var>Public Employees Retirement Association; creation of MERF consolidation <br/>
<a id="pl.1.32"></a><var>1.32</var>account within the Public Employees Retirement Association; making various <br/>
<a id="pl.1.33"></a><var>1.33</var>technical corrections relating to volunteer fire relief associations; revising <br/>
<a id="pl.1.34"></a><var>1.34</var>break-in-service return to firefighting authorizations; authorizing Minnesota <br/>
<a id="pl.1.35"></a><var>1.35</var>deferred compensation plan service pension transfers; revising payout defaults <br/>
<a id="pl.1.36"></a><var>1.36</var>in survivor benefits; authorizing corrections of certain special fund deposits; <br/>
<a id="pl.1.37"></a><var>1.37</var>requiring a retirement fund investment authority study; authorizing certain <br/>
<a id="pl.1.38"></a><var>1.38</var>bylaw amendments; making technical changes; appropriating money;amending <br/>
<a id="pl.1.39"></a><var>1.39</var>Minnesota Statutes 2008, sections 3A.02, subdivision 4; 3A.07; 11A.04; <br/>
<a id="pl.2.1"></a><var>2.1</var>11A.23, subdivision 4; 13D.01, subdivision 1; 43A.17, subdivision 9; 43A.316, <br/>
<a id="pl.2.2"></a><var>2.2</var>subdivision 8; 69.021, subdivision 10; 69.051, subdivision 3; 126C.41, <br/>
<a id="pl.2.3"></a><var>2.3</var>subdivision 3; 256D.21; 352.01, subdivision 2a; 352.03, subdivision 4; 352.04, <br/>
<a id="pl.2.4"></a><var>2.4</var>subdivision 9; 352.113, subdivision 1; 352.115, subdivisions 1, 10; 352.12, <br/>
<a id="pl.2.5"></a><var>2.5</var>subdivision 2; 352.22, subdivisions 2, 3; 352.72, subdivisions 1, 2; 352.91, by <br/>
<a id="pl.2.6"></a><var>2.6</var>adding a subdivision; 352.93, subdivisions 1, 2a, 3a; 352.931, subdivision 1; <br/>
<a id="pl.2.7"></a><var>2.7</var>352.965, subdivisions 1, 2, 6; 352B.02, as amended; 352B.08, subdivisions 1, 2a; <br/>
<a id="pl.2.8"></a><var>2.8</var>352B.11, subdivision 2b; 352B.30, subdivisions 1, 2; 352D.015, subdivisions 4, <br/>
<a id="pl.2.9"></a><var>2.9</var>9, by adding a subdivision; 352D.02, subdivisions 1, 1c, 2, 3; 352D.03; 352D.04, <br/>
<a id="pl.2.10"></a><var>2.10</var>subdivisions 1, 2; 352D.05, subdivisions 3, 4; 352D.06, subdivision 3; 352D.065, <br/>
<a id="pl.2.11"></a><var>2.11</var>subdivision 3; 352D.09, subdivisions 3, 7; 352F.07; 353.01, subdivisions 2b, 2d, <br/>
<a id="pl.2.12"></a><var>2.12</var>by adding subdivisions; 353.0161, subdivision 2; 353.03, subdivision 1; 353.05; <br/>
<a id="pl.2.13"></a><var>2.13</var>353.27, as amended; 353.29, subdivision 1; 353.30, subdivision 1c; 353.32, <br/>
<a id="pl.2.14"></a><var>2.14</var>subdivisions 1, 1a; 353.34, subdivisions 1, 2, 3, 6; 353.37, subdivisions 1, 2, 3, <br/>
<a id="pl.2.15"></a><var>2.15</var>3a, 4, 5; 353.46, subdivisions 2, 6; 353.64, subdivision 7; 353.651, subdivisions <br/>
<a id="pl.2.16"></a><var>2.16</var>1, 4; 353.657, subdivisions 1, 2a; 353.71, subdivisions 1, 2, 4; 353.86, <br/>
<a id="pl.2.17"></a><var>2.17</var>subdivisions 1, 2; 353.87, subdivisions 1, 2; 353.88; 353D.01, subdivision 2; <br/>
<a id="pl.2.18"></a><var>2.18</var>353D.03, subdivision 1; 353D.04, subdivisions 1, 2; 353E.04, subdivisions 1, <br/>
<a id="pl.2.19"></a><var>2.19</var>4; 353E.07, subdivisions 1, 2; 353F.025, subdivisions 1, 2; 353F.03; 354.05, by <br/>
<a id="pl.2.20"></a><var>2.20</var>adding a subdivision; 354.07, subdivision 5; 354.091; 354.42, subdivisions 3, 7, <br/>
<a id="pl.2.21"></a><var>2.21</var>by adding subdivisions; 354.52, subdivision 6, by adding a subdivision; 354.66, <br/>
<a id="pl.2.22"></a><var>2.22</var>subdivision 3; 354.71; 354A.011, subdivision 27; 354A.12, subdivisions 1, 3c, <br/>
<a id="pl.2.23"></a><var>2.23</var>by adding a subdivision; 354A.27, subdivisions 5, 6, by adding a subdivision; <br/>
<a id="pl.2.24"></a><var>2.24</var>354A.31, subdivision 1; 354A.35, subdivision 1; 354A.37, subdivisions 2, 3, 4; <br/>
<a id="pl.2.25"></a><var>2.25</var>354A.39; 354B.25, subdivisions 1, 3; 354C.14; 355.095, subdivision 1; 356.214, <br/>
<a id="pl.2.26"></a><var>2.26</var>subdivision 1; 356.215, subdivisions 3, 8; 356.24, subdivision 1; 356.30, <br/>
<a id="pl.2.27"></a><var>2.27</var>subdivisions 1, 3; 356.302, subdivisions 1, 3, 4, 5, 7; 356.303, subdivisions <br/>
<a id="pl.2.28"></a><var>2.28</var>2, 4; 356.315, subdivision 5; 356.351, subdivision 1; 356.407, subdivision 2; <br/>
<a id="pl.2.29"></a><var>2.29</var>356.431, subdivision 1; 356.465, subdivision 3; 356.47, subdivision 3; 356.50, <br/>
<a id="pl.2.30"></a><var>2.30</var>subdivision 4; 356.64; 356.65, subdivision 2; 356.91; 356.96, subdivisions 2, <br/>
<a id="pl.2.31"></a><var>2.31</var>3, 7, 8; 356A.06, subdivision 8; 422A.101, subdivision 3; 422A.26; 473.511, <br/>
<a id="pl.2.32"></a><var>2.32</var>subdivision 3; 473.606, subdivision 5; 475.52, subdivision 6; 490.123, by <br/>
<a id="pl.2.33"></a><var>2.33</var>adding a subdivision; 518.58, subdivisions 3, 4; Minnesota Statutes 2009 <br/>
<a id="pl.2.34"></a><var>2.34</var>Supplement, sections 6.67; 69.011, subdivision 1; 69.031, subdivision 5; 69.772, <br/>
<a id="pl.2.35"></a><var>2.35</var>subdivision 6; 69.773, subdivision 6; 352.01, subdivision 2b; 352.75, subdivision <br/>
<a id="pl.2.36"></a><var>2.36</var>4; 352.95, subdivision 2; 352B.011, subdivision 3; 353.01, subdivisions 2, <br/>
<a id="pl.2.37"></a><var>2.37</var>2a, 16; 353.06; 353.27, subdivisions 2, 3, 7; 353.33, subdivision 1; 353.371, <br/>
<a id="pl.2.38"></a><var>2.38</var>subdivision 4; 353.65, subdivisions 2, 3; 353F.02, subdivision 4; 353G.05, <br/>
<a id="pl.2.39"></a><var>2.39</var>subdivision 2; 353G.06, subdivision 1; 353G.08; 353G.09, subdivision 3; <br/>
<a id="pl.2.40"></a><var>2.40</var>353G.11, subdivision 1, by adding a subdivision; 354.42, subdivision 2; 354.47, <br/>
<a id="pl.2.41"></a><var>2.41</var>subdivision 1; 354.49, subdivision 2; 354.52, subdivision 4b; 354.55, subdivision <br/>
<a id="pl.2.42"></a><var>2.42</var>11; 354A.12, subdivision 2a; 356.20, subdivision 2; 356.215, subdivision 11; <br/>
<a id="pl.2.43"></a><var>2.43</var>356.32, subdivision 2; 356.351, subdivision 2; 356.401, subdivision 3; 356.415, <br/>
<a id="pl.2.44"></a><var>2.44</var>subdivisions 1, 2, by adding subdivisions; 356.96, subdivisions 1, 5; 423A.02, <br/>
<a id="pl.2.45"></a><var>2.45</var>subdivision 3; 424A.01, subdivisions 1, 6; 424A.015, by adding a subdivision; <br/>
<a id="pl.2.46"></a><var>2.46</var>424A.016, subdivisions 4, 7; 424A.02, subdivisions 9, 10; 424A.05, subdivision <br/>
<a id="pl.2.47"></a><var>2.47</var>3, by adding a subdivision; 424A.08; 480.181, subdivision 2; Laws 2009, chapter <br/>
<a id="pl.2.48"></a><var>2.48</var>169, article 4, section 49; article 5, section 2; proposing coding for new law in <br/>
<a id="pl.2.49"></a><var>2.49</var>Minnesota Statutes, chapters 352B; 353; 353G; 356; repealing Minnesota Statutes <br/>
<a id="pl.2.50"></a><var>2.50</var>2008, sections 13.63, subdivision 1; 69.011, subdivision 2a; 352.91, subdivision <br/>
<a id="pl.2.51"></a><var>2.51</var>5; 353.01, subdivision 40; 353.46, subdivision 1a; 353.88; 353D.03, subdivision <br/>
<a id="pl.2.52"></a><var>2.52</var>2; 353D.12; 354A.27, subdivision 1; 354C.15; 356.43; 422A.01, subdivisions 1, <br/>
<a id="pl.2.53"></a><var>2.53</var>2, 3, 4, 4a, 5, 6, 7, 8, 9, 10, 11, 12, 13a, 17, 18; 422A.02; 422A.03; 422A.04; <br/>
<a id="pl.2.54"></a><var>2.54</var>422A.05, subdivisions 1, 2a, 2b, 2c, 2d, 2e, 2f, 5, 6, 8; 422A.06, subdivisions 1, <br/>
<a id="pl.2.55"></a><var>2.55</var>2, 3, 5, 6, 7; 422A.08, subdivision 1; 422A.09; 422A.10; 422A.101, subdivisions <br/>
<a id="pl.2.56"></a><var>2.56</var>1, 1a, 2, 2a; 422A.11; 422A.12; 422A.13; 422A.14, subdivision 1; 422A.15; <br/>
<a id="pl.2.57"></a><var>2.57</var>422A.151; 422A.155; 422A.156; 422A.16, subdivisions 1, 2, 3, 4, 5, 6, 7, 8, 9, <br/>
<a id="pl.2.58"></a><var>2.58</var>10; 422A.17; 422A.18, subdivisions 1, 2, 3, 4, 5, 7; 422A.19; 422A.20; 422A.21; <br/>
<a id="pl.3.1"></a><var>3.1</var>422A.22, subdivisions 1, 3, 4, 6; 422A.23, subdivisions 1, 2, 5, 6, 7, 8, 9, 10, <br/>
<a id="pl.3.2"></a><var>3.2</var>11, 12; 422A.231; 422A.24; 422A.25; Minnesota Statutes 2009 Supplement, <br/>
<a id="pl.3.3"></a><var>3.3</var>sections 422A.06, subdivision 8; 422A.08, subdivision 5; 424A.001, subdivision <br/>
<a id="pl.3.4"></a><var>3.4</var>6; Laws 2009, chapter 169, article 10, section 32.<br/>
<a id="pl.3.5"></a><var>3.5</var>BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:<br/>
<br/>
<a id="bill.1.0.0"></a>

<a id="bill.1.1.0"></a><a id="pl.3.8"></a><var>3.8</var>    Section 1. Minnesota Statutes 2008, section 3A.02, subdivision 4, is amended to read:<br/>
<a id="pl.3.9"></a><var>3.9</var>    Subd. 4. <b>Deferred annuities augmentation.</b>  (a) The deferred retirement allowance <br/>
<a id="pl.3.10"></a><var>3.10</var>of any former legislator must be augmented as provided herein.<br/>
<a id="pl.3.11"></a><var>3.11</var>    (b) The required reserves applicable to the deferred retirement allowance, <br/>
<a id="pl.3.12"></a><var>3.12</var>determined as of the date the benefit begins to accrue using an appropriate mortality table <br/>
<a id="pl.3.13"></a><var>3.13</var>and an interest assumption of six percent, must be augmented from the first of the month <br/>
<a id="pl.3.14"></a><var>3.14</var>following the termination of active service, or July 1, 1973, whichever is later, to the first <br/>
<a id="pl.3.15"></a><var>3.15</var>day of the month in which the allowance begins to accrue, at the following annually <br/>
<a id="pl.3.16"></a><var>3.16</var>compounded rate or rates:<br/>
<a id="pl.3.17"></a><var>3.17</var>(1) five percent until January 1, 1981;<br/>
<a id="pl.3.18"></a><var>3.18</var>(2) three percent from January 1, 1981, or from the first day of the month following <br/>
<a id="pl.3.19"></a><var>3.19</var>the termination of active service, whichever is later, until January 1 of the year in which <br/>
<a id="pl.3.20"></a><var>3.20</var>the former legislator attains age 55 or until January 1, 2012, whichever is earlier; and<br/>
<a id="pl.3.21"></a><var>3.21</var>(3) five percent from the period end date under clause (2) to until the effective date <br/>
<a id="pl.3.22"></a><var>3.22</var>of retirement or until January 1, 2012, whichever is earlier; and<br/>
<a id="pl.3.23"></a><var>3.23</var>(4) two percent after December 31, 2011.<br/>
<a id="pl.3.24"></a><var>3.24</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.1.2.0"></a><a id="pl.3.25"></a><var>3.25</var>    Sec. 2. Minnesota Statutes 2008, section 352.113, subdivision 1, is amended to read:<br/>
<a id="pl.3.26"></a><var>3.26</var>    Subdivision 1. <b>Age and service requirements.</b> (a) An employee covered by the <br/>
<a id="pl.3.27"></a><var>3.27</var>system, who is less than normal retirement age and who becomes totally and permanently <br/>
<a id="pl.3.28"></a><var>3.28</var>disabled after three or more years of allowable service if employed before July 1, 2010, or <br/>
<a id="pl.3.29"></a><var>3.29</var>after five or more years of allowable service if employed after June 30, 2010, is entitled to <br/>
<a id="pl.3.30"></a><var>3.30</var>a disability benefit in an amount provided in subdivision 3.<br/>
<a id="pl.3.31"></a><var>3.31</var>(b) If the disabled employee's state service has terminated at any time, the employee <br/>
<a id="pl.3.32"></a><var>3.32</var>must have at least two years of allowable service after last becoming a state employee <br/>
<a id="pl.3.33"></a><var>3.33</var>covered by the system.<br/>
<a id="pl.4.1"></a><var>4.1</var>(c) Refunds may be repaid under section 
         <statute_ref>352.23</statute_ref> before the effective accrual date of <br/>
<a id="pl.4.2"></a><var>4.2</var>the disability benefit under subdivision 2. <br/>
<a id="pl.4.3"></a><var>4.3</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.1.3.0"></a><a id="pl.4.4"></a><var>4.4</var>    Sec. 3. Minnesota Statutes 2008, section 352.115, subdivision 1, is amended to read:<br/>
<a id="pl.4.5"></a><var>4.5</var>    Subdivision 1. <b>Age and service requirements.</b> After separation from state service, <br/>
<a id="pl.4.6"></a><var>4.6</var>any employee (1) who has attained the age of at least 55 years and who is entitled to <br/>
<a id="pl.4.7"></a><var>4.7</var>credit for at least three years allowable service if employed before July 1, 2010, or after <br/>
<a id="pl.4.8"></a><var>4.8</var>five or more years of allowable service if employed after June 30, 2010, or (2) who has <br/>
<a id="pl.4.9"></a><var>4.9</var>received credit for at least 30 years allowable service regardless of age, is entitled upon <br/>
<a id="pl.4.10"></a><var>4.10</var>application to a retirement annuity.<br/>
<a id="pl.4.11"></a><var>4.11</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.1.4.0"></a><a id="pl.4.12"></a><var>4.12</var>    Sec. 4. Minnesota Statutes 2008, section 352.12, subdivision 2, is amended to read:<br/>
<a id="pl.4.13"></a><var>4.13</var>    Subd. 2. <b>Surviving spouse benefit.</b> (a) If an employee or former employee has <br/>
<a id="pl.4.14"></a><var>4.14</var>credit for at least three years allowable service if the employee was employed before July <br/>
<a id="pl.4.15"></a><var>4.15</var>1, 2010, or for at least five years of allowable service if the employee was employed <br/>
<a id="pl.4.16"></a><var>4.16</var>after June 30, 2010, and dies before an annuity or disability benefit has become payable, <br/>
<a id="pl.4.17"></a><var>4.17</var>notwithstanding any designation of beneficiary to the contrary, the surviving spouse of the <br/>
<a id="pl.4.18"></a><var>4.18</var>employee may elect to receive, in lieu of the refund with interest under subdivision 1, an <br/>
<a id="pl.4.19"></a><var>4.19</var>annuity equal to the joint and 100 percent survivor annuity which the employee or former <br/>
<a id="pl.4.20"></a><var>4.20</var>employee could have qualified for on the date of death.<br/>
<a id="pl.4.21"></a><var>4.21</var>    (b) If the employee was under age 55 and has credit for at least 30 years of allowable <br/>
<a id="pl.4.22"></a><var>4.22</var>service on the date of death, the surviving spouse may elect to receive a 100 percent joint <br/>
<a id="pl.4.23"></a><var>4.23</var>and survivor annuity based on the age of the employee and surviving spouse on the date <br/>
<a id="pl.4.24"></a><var>4.24</var>of death. The annuity is payable using the full early retirement reduction under section <br/>
<statute_ref><a id="pl.4.25"></a><var>4.25</var>352.116, subdivision 1
         </statute_ref>, paragraph (a), to age 55 and one-half of the early retirement <br/>
<a id="pl.4.26"></a><var>4.26</var>reduction from age 55 to the age payment begins. <br/>
<a id="pl.4.27"></a><var>4.27</var>    (c) If the employee was under age 55 and has credit for at least three years of <br/>
<a id="pl.4.28"></a><var>4.28</var>allowable service credit on the date of death if the employee was employed before July 1, <br/>
<a id="pl.4.29"></a><var>4.29</var>2010, or for at least five years of allowable service if the employee was employed after <br/>
<a id="pl.4.30"></a><var>4.30</var>June 30, 2010, but did not yet qualify for retirement, the surviving spouse may elect <br/>
<a id="pl.4.31"></a><var>4.31</var>to receive a 100 percent joint and survivor annuity based on the age of the employee <br/>
<a id="pl.4.32"></a><var>4.32</var>and surviving spouse at the time of death. The annuity is payable using the full early <br/>
<a id="pl.5.1"></a><var>5.1</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.5.2"></a><var>5.2</var>the early retirement reduction from age 55 to the age payment begins. <br/>
<a id="pl.5.3"></a><var>5.3</var>    (d) The surviving spouse eligible for benefits under paragraph (a) may apply for the <br/>
<a id="pl.5.4"></a><var>5.4</var>annuity at any time after the date on which the employee or former employee would <br/>
<a id="pl.5.5"></a><var>5.5</var>have attained the required age for retirement based on the allowable service earned. <br/>
<a id="pl.5.6"></a><var>5.6</var>The surviving spouse eligible for surviving spouse benefits under paragraph (b) or (c) <br/>
<a id="pl.5.7"></a><var>5.7</var>may apply for the annuity at any time after the employee's death. The annuity must be <br/>
<a id="pl.5.8"></a><var>5.8</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.5.9"></a><var>5.9</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.5.10"></a><var>5.10</var>annuity or surviving spouse benefit payable under this subdivision. The annuity must cease <br/>
<a id="pl.5.11"></a><var>5.11</var>with the last payment received by the surviving spouse in the lifetime of the surviving <br/>
<a id="pl.5.12"></a><var>5.12</var>spouse, or upon expiration of a term certain benefit payment to a surviving spouse under <br/>
<a id="pl.5.13"></a><var>5.13</var>subdivision 2a. An amount equal to the excess, if any, of the accumulated contributions <br/>
<a id="pl.5.14"></a><var>5.14</var>credited to the account of the deceased employee in excess of the total of the benefits paid <br/>
<a id="pl.5.15"></a><var>5.15</var>and payable to the surviving spouse must be paid to the deceased employee's or former <br/>
<a id="pl.5.16"></a><var>5.16</var>employee's last designated beneficiary or, if none, as specified under subdivision 1. <br/>
<a id="pl.5.17"></a><var>5.17</var>    (e) Any employee or former employee may request in writing, with the signed <br/>
<a id="pl.5.18"></a><var>5.18</var>consent of the spouse, that this subdivision not apply and that payment be made only to a <br/>
<a id="pl.5.19"></a><var>5.19</var>designated beneficiary as otherwise provided by this chapter.<br/>
<a id="pl.5.20"></a><var>5.20</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.1.5.0"></a><a id="pl.5.21"></a><var>5.21</var>    Sec. 5. Minnesota Statutes 2008, section 352.22, subdivision 2, is amended to read:<br/>
<a id="pl.5.22"></a><var>5.22</var>    Subd. 2. <b>Amount of refund.</b> Except as provided in subdivision 3, the refund <br/>
<a id="pl.5.23"></a><var>5.23</var>payable to a person who ceased to be a state employee by reason of a termination of state <br/>
<a id="pl.5.24"></a><var>5.24</var>service is an amount equal to employee accumulated contributions plus interest at the rate <br/>
<a id="pl.5.25"></a><var>5.25</var>of six percent per year compounded daily from the date that the contribution was made <br/>
<a id="pl.5.26"></a><var>5.26</var>until June 30, 2011, or until the date on which the refund is paid, whichever is earlier, and <br/>
<a id="pl.5.27"></a><var>5.27</var>at the rate of four percent per year compounded daily from the date that the contribution <br/>
<a id="pl.5.28"></a><var>5.28</var>was made or from July 1, 2011, whichever is later, until the date on which the refund is <br/>
<a id="pl.5.29"></a><var>5.29</var>paid. Included with the refund is any interest paid as part of repayment of a past refund, <br/>
<a id="pl.5.30"></a><var>5.30</var>plus interest thereon from the date of repayment.<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.1.6.0"></a><a id="pl.5.32"></a><var>5.32</var>    Sec. 6. Minnesota Statutes 2008, section 352.22, subdivision 3, is amended to read:<br/>
<a id="pl.6.1"></a><var>6.1</var>    Subd. 3. <b>Deferred annuity.</b> (a) An employee who has at least three years of <br/>
<a id="pl.6.2"></a><var>6.2</var>allowable service if employed before July 1, 2010, or who has at least five years of <br/>
<a id="pl.6.3"></a><var>6.3</var>allowable service if employed after June 30, 2010, when termination occurs may elect <br/>
<a id="pl.6.4"></a><var>6.4</var>to leave the accumulated contributions in the fund and thereby be entitled to a deferred <br/>
<a id="pl.6.5"></a><var>6.5</var>retirement annuity. The annuity must be computed under the law in effect when state <br/>
<a id="pl.6.6"></a><var>6.6</var>service terminated, on the basis of the allowable service credited to the person before <br/>
<a id="pl.6.7"></a><var>6.7</var>the termination of service.<br/>
<a id="pl.6.8"></a><var>6.8</var>(b) An employee on layoff or on leave of absence without pay, except a leave of <br/>
<a id="pl.6.9"></a><var>6.9</var>absence for health reasons, and who does not return to state service must have an annuity, <br/>
<a id="pl.6.10"></a><var>6.10</var>deferred annuity, or other benefit to which the employee may become entitled computed <br/>
<a id="pl.6.11"></a><var>6.11</var>under the law in effect on the employee's last working day.<br/>
<a id="pl.6.12"></a><var>6.12</var>(c) No application for a deferred annuity may be made more than 60 days before <br/>
<a id="pl.6.13"></a><var>6.13</var>the time the former employee reaches the required age for entitlement to the payment of <br/>
<a id="pl.6.14"></a><var>6.14</var>the annuity. The deferred annuity begins to accrue no earlier than 60 days before the date <br/>
<a id="pl.6.15"></a><var>6.15</var>the application is filed in the office of the system, but not (1) before the date on which <br/>
<a id="pl.6.16"></a><var>6.16</var>the employee reaches the required age for entitlement to the annuity nor (2) before the <br/>
<a id="pl.6.17"></a><var>6.17</var>day following the termination of state service in a position which is not covered by the <br/>
<a id="pl.6.18"></a><var>6.18</var>retirement system.<br/>
<a id="pl.6.19"></a><var>6.19</var>(d) Application for the accumulated contributions left on deposit with the fund may <br/>
<a id="pl.6.20"></a><var>6.20</var>be made at any time following the date of the termination of service.<br/>
<a id="pl.6.21"></a><var>6.21</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.1.7.0"></a><a id="pl.6.22"></a><var>6.22</var>    Sec. 7. Minnesota Statutes 2008, section 352.72, subdivision 1, is amended to read:<br/>
<a id="pl.6.23"></a><var>6.23</var>    Subdivision 1. <b>Entitlement to annuity.</b> (a) Any person who has been an employee <br/>
<a id="pl.6.24"></a><var>6.24</var>covered by a retirement system listed in paragraph (b) is entitled when qualified to an <br/>
<a id="pl.6.25"></a><var>6.25</var>annuity from each fund if total allowable service in all funds or in any two of these funds <br/>
<a id="pl.6.26"></a><var>6.26</var>totals three or more years if employed before July 1, 2010, or totals five or more years <br/>
<a id="pl.6.27"></a><var>6.27</var>if employed after June 30, 2010.<br/>
<a id="pl.6.28"></a><var>6.28</var>(b) This section applies to the Minnesota State Retirement System, the Public <br/>
<a id="pl.6.29"></a><var>6.29</var>Employees Retirement Association including the Public Employees Retirement <br/>
<a id="pl.6.30"></a><var>6.30</var>Association police and fire fund, the Teachers Retirement Association, the State Patrol <br/>
<a id="pl.6.31"></a><var>6.31</var>Retirement Association, or any other public employee retirement system in the state with <br/>
<a id="pl.6.32"></a><var>6.32</var>a similar provision, except as noted in paragraph (c).<br/>
<a id="pl.6.33"></a><var>6.33</var>(c) This section does not apply to other funds providing benefits for police officers <br/>
<a id="pl.6.34"></a><var>6.34</var>or firefighters.<br/>
<a id="pl.7.1"></a><var>7.1</var>(d) No portion of the allowable service upon which the retirement annuity from <br/>
<a id="pl.7.2"></a><var>7.2</var>one fund is based shall be again used in the computation for benefits from another fund. <br/>
<a id="pl.7.3"></a><var>7.3</var>No refund may have been taken from any one of these funds since service entitling the <br/>
<a id="pl.7.4"></a><var>7.4</var>employee to coverage under the system or the employee's membership in any of the <br/>
<a id="pl.7.5"></a><var>7.5</var>associations last terminated. The annuity from each fund must be determined by the <br/>
<a id="pl.7.6"></a><var>7.6</var>appropriate provisions of the law except that the requirement that a person must have at <br/>
<a id="pl.7.7"></a><var>7.7</var>least three a specific number of years of allowable service in the respective system or <br/>
<a id="pl.7.8"></a><var>7.8</var>association does not apply for the purposes of this section if the combined service in two <br/>
<a id="pl.7.9"></a><var>7.9</var>or more of these funds equals three or more years at least the longest period of allowable <br/>
<a id="pl.7.10"></a><var>7.10</var>service of any of the applicable retirement plans.<br/>
<a id="pl.7.11"></a><var>7.11</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.1.8.0"></a><a id="pl.7.12"></a><var>7.12</var>    Sec. 8. Minnesota Statutes 2008, section 352.72, subdivision 2, is amended to read:<br/>
<a id="pl.7.13"></a><var>7.13</var>    Subd. 2. <b>Computation of deferred annuity.</b> (a) The deferred annuity, if any, <br/>
<a id="pl.7.14"></a><var>7.14</var>accruing under subdivision 1, or section 
         <statute_ref>352.22, subdivision 3</statute_ref>, must be computed as <br/>
<a id="pl.7.15"></a><var>7.15</var>provided in section 
         <statute_ref>352.22, subdivision 3</statute_ref>, on the basis of allowable service before <br/>
<a id="pl.7.16"></a><var>7.16</var>termination of state service and augmented as provided herein. The required reserves <br/>
<a id="pl.7.17"></a><var>7.17</var>applicable to a deferred annuity or to an annuity for which a former employee was eligible <br/>
<a id="pl.7.18"></a><var>7.18</var>but had not applied or to any deferred segment of an annuity must be determined as of <br/>
<a id="pl.7.19"></a><var>7.19</var>the date the benefit begins to accrue and augmented by interest compounded annually <br/>
<a id="pl.7.20"></a><var>7.20</var>from the first day of the month following the month in which the employee ceased to be <br/>
<a id="pl.7.21"></a><var>7.21</var>a state employee, or July 1, 1971, whichever is later, to the first day of the month in <br/>
<a id="pl.7.22"></a><var>7.22</var>which the annuity begins to accrue. The rates of interest used for this purpose must be <br/>
<a id="pl.7.23"></a><var>7.23</var>five percent compounded annually until January 1, 1981, and three percent compounded <br/>
<a id="pl.7.24"></a><var>7.24</var>annually thereafter until January 1 of the year following the year in which the former <br/>
<a id="pl.7.25"></a><var>7.25</var>employee attains age 55 or until January 1, 2012, whichever is earlier, and from that date <br/>
<a id="pl.7.26"></a><var>7.26</var>the January 1 next following the attainment of age 55 to the effective date of retirement or <br/>
<a id="pl.7.27"></a><var>7.27</var>until January 1, 2012, whichever is earlier, the rate is five percent compounded annually if <br/>
<a id="pl.7.28"></a><var>7.28</var>the employee became an employee before July 1, 2006, and at 2.5 percent compounded <br/>
<a id="pl.7.29"></a><var>7.29</var>annually until January 1, 2012, if the employee becomes an employee after June 30, 2006, <br/>
<a id="pl.7.30"></a><var>7.30</var>and two percent compounded annually after December 31, 2011, irrespective of when the <br/>
<a id="pl.7.31"></a><var>7.31</var>employee became a state employee. If a person has more than one period of uninterrupted <br/>
<a id="pl.7.32"></a><var>7.32</var>service, the required reserves related to each period must be augmented by interest under <br/>
<a id="pl.7.33"></a><var>7.33</var>this subdivision. The sum of the augmented required reserves so determined is the present <br/>
<a id="pl.7.34"></a><var>7.34</var>value of the annuity. "Uninterrupted service" for the purpose of this subdivision means <br/>
<a id="pl.7.35"></a><var>7.35</var>periods of covered employment during which the employee has not been separated from <br/>
<a id="pl.8.1"></a><var>8.1</var>state service for more than two years. If a person repays a refund, the service restored by <br/>
<a id="pl.8.2"></a><var>8.2</var>the repayment must be considered continuous with the next period of service for which the <br/>
<a id="pl.8.3"></a><var>8.3</var>employee has credit with this system. The formula percentages used for each period of <br/>
<a id="pl.8.4"></a><var>8.4</var>uninterrupted service must be those applicable to a new employee. The mortality table <br/>
<a id="pl.8.5"></a><var>8.5</var>and interest assumption used to compute the annuity must be those in effect when the <br/>
<a id="pl.8.6"></a><var>8.6</var>employee files application for annuity. This section does not reduce the annuity otherwise <br/>
<a id="pl.8.7"></a><var>8.7</var>payable under this chapter. <br/>
<a id="pl.8.8"></a><var>8.8</var>(b) The retirement annuity or disability benefit of, or the survivor benefit payable on <br/>
<a id="pl.8.9"></a><var>8.9</var>behalf of, a former state employee who terminated service before July 1, 1997, which is <br/>
<a id="pl.8.10"></a><var>8.10</var>not first payable until after June 30, 1997, must be increased on an actuarial equivalent <br/>
<a id="pl.8.11"></a><var>8.11</var>basis to reflect the change in the postretirement interest rate actuarial assumption under <br/>
<a id="pl.8.12"></a><var>8.12</var>section 
         <statute_ref>356.215, subdivision 8</statute_ref>, from five percent to six percent under a calculation <br/>
<a id="pl.8.13"></a><var>8.13</var>procedure and the tables adopted by the board and approved by the actuary retained under <br/>
<a id="pl.8.14"></a><var>8.14</var>section 
         <statute_ref>356.214</statute_ref>. <br/>
<a id="pl.8.15"></a><var>8.15</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.1.9.0"></a><a id="pl.8.16"></a><var>8.16</var>    Sec. 9. Minnesota Statutes 2009 Supplement, section 352.75, subdivision 4, is <br/>
<a id="pl.8.17"></a><var>8.17</var>amended to read:<br/>
<a id="pl.8.18"></a><var>8.18</var>    Subd. 4. <b>Existing deferred retirees.</b> Any former member of the former <br/>
<a id="pl.8.19"></a><var>8.19</var>Metropolitan Transit Commission-Transit Operating Division employees retirement <br/>
<a id="pl.8.20"></a><var>8.20</var>fund is entitled to a retirement annuity from the Minnesota State Retirement System if <br/>
<a id="pl.8.21"></a><var>8.21</var>the employee:<br/>
<a id="pl.8.22"></a><var>8.22</var>(1) is not an active employee of the Transit Operating Division of the former <br/>
<a id="pl.8.23"></a><var>8.23</var>Metropolitan Transit Commission on July 1, 1978; (2) has at least ten years of active <br/>
<a id="pl.8.24"></a><var>8.24</var>continuous service with the Transit Operating Division of the former Metropolitan <br/>
<a id="pl.8.25"></a><var>8.25</var>Transit Commission as defined by the former Metropolitan Transit Commission-Transit <br/>
<a id="pl.8.26"></a><var>8.26</var>Operating Division employees retirement plan document in effect on December 31, 1977; <br/>
<a id="pl.8.27"></a><var>8.27</var>(3) has not received a refund of contributions; (4) has not retired or begun receiving an <br/>
<a id="pl.8.28"></a><var>8.28</var>annuity or benefit from the former Metropolitan Transit Commission-Transit Operating <br/>
<a id="pl.8.29"></a><var>8.29</var>Division employees retirement fund; (5) is at least 55 years old; and (6) submits a valid <br/>
<a id="pl.8.30"></a><var>8.30</var>application for a retirement annuity to the executive director of the Minnesota State <br/>
<a id="pl.8.31"></a><var>8.31</var>Retirement System.<br/>
<a id="pl.8.32"></a><var>8.32</var>The person is entitled to a retirement annuity in an amount equal to the normal <br/>
<a id="pl.8.33"></a><var>8.33</var>old age retirement allowance calculated under the former Metropolitan Transit <br/>
<a id="pl.8.34"></a><var>8.34</var>Commission-Transit Operating Division employees retirement fund plan document in <br/>
<a id="pl.8.35"></a><var>8.35</var>effect on December 31, 1977, subject to an early retirement reduction or adjustment in <br/>
<a id="pl.9.1"></a><var>9.1</var>amount on account of retirement before the normal retirement age specified in that former <br/>
<a id="pl.9.2"></a><var>9.2</var>Metropolitan Transit Commission-Transit Operating Division employees retirement fund <br/>
<a id="pl.9.3"></a><var>9.3</var>plan document.<br/>
<a id="pl.9.4"></a><var>9.4</var>The deferred retirement annuity of any person to whom this subdivision applies <br/>
<a id="pl.9.5"></a><var>9.5</var>must be augmented. The required reserves applicable to the deferred retirement annuity, <br/>
<a id="pl.9.6"></a><var>9.6</var>determined as of the date the allowance begins to accrue using an appropriate mortality <br/>
<a id="pl.9.7"></a><var>9.7</var>table and an interest assumption of five percent, must be augmented by interest at the <br/>
<a id="pl.9.8"></a><var>9.8</var>rate of five percent per year compounded annually from January 1, 1978, to January 1, <br/>
<a id="pl.9.9"></a><var>9.9</var>1981, and three percent per year compounded annually from January 1, 1981, until the <br/>
<a id="pl.9.10"></a><var>9.10</var>date that the annuity begins to accrue or June 30, 2011, whichever is earlier, and two <br/>
<a id="pl.9.11"></a><var>9.11</var>percent after June 30, 2011, to the first day of the month in which the annuity begins to <br/>
<a id="pl.9.12"></a><var>9.12</var>accrue. After the commencement of the retirement annuity, the annuity is eligible for <br/>
<a id="pl.9.13"></a><var>9.13</var>postretirement adjustments under section 
         <statute_ref>356.415</statute_ref>. On applying for a retirement annuity <br/>
<a id="pl.9.14"></a><var>9.14</var>under this subdivision, the person is entitled to elect a joint and survivor optional annuity <br/>
<a id="pl.9.15"></a><var>9.15</var>under section 
         <statute_ref>352.116, subdivision 3</statute_ref>. <br/>
<a id="pl.9.16"></a><var>9.16</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.1.10.0"></a><a id="pl.9.17"></a><var>9.17</var>    Sec. 10. Minnesota Statutes 2008, section 352.93, subdivision 1, is amended to read:<br/>
<a id="pl.9.18"></a><var>9.18</var>    Subdivision 1. <b>Basis of annuity; when to apply.</b> After separation from state <br/>
<a id="pl.9.19"></a><var>9.19</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.9.20"></a><var>9.20</var>credit for at least three years of covered correctional service or a combination of covered <br/>
<a id="pl.9.21"></a><var>9.21</var>correctional service and general state employees state retirement plan allowable service <br/>
<a id="pl.9.22"></a><var>9.22</var>if first employed as a state employee before July 1, 2010, or has credit for at least ten <br/>
<a id="pl.9.23"></a><var>9.23</var>years of covered correctional service or a combination of covered correctional service <br/>
<a id="pl.9.24"></a><var>9.24</var>and general state employees retirement plan allowable service if first employed as a state <br/>
<a id="pl.9.25"></a><var>9.25</var>employee after June 30, 2010, is entitled upon application to a retirement annuity under <br/>
<a id="pl.9.26"></a><var>9.26</var>this section, based only on covered correctional employees' service. Application may be <br/>
<a id="pl.9.27"></a><var>9.27</var>made no earlier than 60 days before the date the employee is eligible to retire by reason of <br/>
<a id="pl.9.28"></a><var>9.28</var>both age and service requirements.<br/>
<a id="pl.9.29"></a><var>9.29</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.1.11.0"></a><a id="pl.9.30"></a><var>9.30</var>    Sec. 11. Minnesota Statutes 2008, section 352.93, subdivision 2a, is amended to read:<br/>
<a id="pl.9.31"></a><var>9.31</var>    Subd. 2a. <b>Early retirement.</b> Any covered correctional employee who becomes at <br/>
<a id="pl.9.32"></a><var>9.32</var>least 50 years old and who has at least three years of allowable service if first employed <br/>
<a id="pl.9.33"></a><var>9.33</var>as a correctional state employee before July 1, 2010, or has credit for at least ten years <br/>
<a id="pl.10.1"></a><var>10.1</var>of allowable service if first employed as a correctional state employee after June 30, <br/>
<a id="pl.10.2"></a><var>10.2</var>2010, is entitled upon application to a reduced retirement annuity equal to the annuity <br/>
<a id="pl.10.3"></a><var>10.3</var>calculated under subdivision 2, reduced by two-tenths of one percent for each month that <br/>
<a id="pl.10.4"></a><var>10.4</var>the correctional employee is under age 55 at the time of retirement if first employed as <br/>
<a id="pl.10.5"></a><var>10.5</var>a correctional state employee before July 1, 2010, and if retired before July 1, 2015, or <br/>
<a id="pl.10.6"></a><var>10.6</var>reduced by 0.417 percent for each month that the correctional employee is under age 55 <br/>
<a id="pl.10.7"></a><var>10.7</var>at the time of retirement if first employed as a correctional state employee after June 30, <br/>
<a id="pl.10.8"></a><var>10.8</var>2010, or if first employed as a correctional state employee before July 1, 2010, and if <br/>
<a id="pl.10.9"></a><var>10.9</var>retired after June 30, 2015.<br/>
<a id="pl.10.10"></a><var>10.10</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.1.12.0"></a><a id="pl.10.11"></a><var>10.11</var>    Sec. 12. Minnesota Statutes 2008, section 352.93, subdivision 3a, is amended to read:<br/>
<a id="pl.10.12"></a><var>10.12</var>    Subd. 3a. <b>Optional annuities.</b> The board may establish optional annuity forms to <br/>
<a id="pl.10.13"></a><var>10.13</var>pay a higher amount from the date of retirement until an employee is first eligible to draw <br/>
<a id="pl.10.14"></a><var>10.14</var>Social Security benefits, reaches age 65, or up to reaches the age the employee is eligible <br/>
<a id="pl.10.15"></a><var>10.15</var>to receive unreduced Social Security benefits, at which time the monthly benefits must be <br/>
<a id="pl.10.16"></a><var>10.16</var>reduced. The optional annuity forms must be actuarially equivalent to the normal single <br/>
<a id="pl.10.17"></a><var>10.17</var>life annuity form provided in subdivision 2. The optional annuity forms must be approved <br/>
<a id="pl.10.18"></a><var>10.18</var>certified as actuarially equivalent by the actuary retained under section 
         <statute_ref>356.214</statute_ref>.<br/>
<a id="pl.10.19"></a><var>10.19</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.1.13.0"></a><a id="pl.10.20"></a><var>10.20</var>    Sec. 13. Minnesota Statutes 2008, section 352.931, subdivision 1, is amended to read:<br/>
<a id="pl.10.21"></a><var>10.21</var>    Subdivision 1. <b>Surviving spouse benefit.</b> (a) If the correctional employee was at <br/>
<a id="pl.10.22"></a><var>10.22</var>least age 50, has credit for at least three years of allowable service if first employed as <br/>
<a id="pl.10.23"></a><var>10.23</var>a correctional state employee before July 1, 2010, or has credit for at least ten years of <br/>
<a id="pl.10.24"></a><var>10.24</var>allowable service if first employed as a correctional state employee after June 30, 2010, <br/>
<a id="pl.10.25"></a><var>10.25</var>and dies before an annuity or disability benefit has become payable, notwithstanding any <br/>
<a id="pl.10.26"></a><var>10.26</var>designation of beneficiary to the contrary, the surviving spouse of the employee may <br/>
<a id="pl.10.27"></a><var>10.27</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.10.28"></a><var>10.28</var>life equal to the joint and 100 percent survivor annuity which the employee could have <br/>
<a id="pl.10.29"></a><var>10.29</var>qualified for had the employee terminated service on the date of death. The election <br/>
<a id="pl.10.30"></a><var>10.30</var>may be made at any time after the date of death of the employee. The surviving spouse <br/>
<a id="pl.10.31"></a><var>10.31</var>benefit begins to accrue as of the first of the month next following the date on which <br/>
<a id="pl.10.32"></a><var>10.32</var>the application for the benefit was filed. <br/>
<a id="pl.11.1"></a><var>11.1</var>    (b) If the employee was under age 50, dies, and had credit for at least three years <br/>
<a id="pl.11.2"></a><var>11.2</var>of allowable service credit on the date of death if first employed as a correctional state <br/>
<a id="pl.11.3"></a><var>11.3</var>employee before July 1, 2010, or had credit for at least ten years of allowable service on <br/>
<a id="pl.11.4"></a><var>11.4</var>the date of death if first employed as a correctional state employee after June 30, 2010, but <br/>
<a id="pl.11.5"></a><var>11.5</var>did not yet qualify for retirement, the surviving spouse may elect to receive a 100 percent <br/>
<a id="pl.11.6"></a><var>11.6</var>joint and survivor annuity based on the age of the employee and surviving spouse at the <br/>
<a id="pl.11.7"></a><var>11.7</var>time of death. The annuity is payable using the early retirement reduction under section <br/>
<statute_ref><a id="pl.11.8"></a><var>11.8</var>352.93, subdivision 2a
         </statute_ref>, to age 50, and one-half of the early retirement reduction from age <br/>
<a id="pl.11.9"></a><var>11.9</var>50 to the age payment begins. The surviving spouse eligible for surviving spouse benefits <br/>
<a id="pl.11.10"></a><var>11.10</var>under this paragraph may apply for the annuity at any time after the employee's death. <br/>
<a id="pl.11.11"></a><var>11.11</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.11.12"></a><var>11.12</var>surviving spouse benefit payable under this subdivision. <br/>
<a id="pl.11.13"></a><var>11.13</var>    (c) The annuity must cease with the last payment received by the surviving spouse <br/>
<a id="pl.11.14"></a><var>11.14</var>in the lifetime of the surviving spouse. Any employee may request in writing, with the <br/>
<a id="pl.11.15"></a><var>11.15</var>signed consent of the spouse, that this subdivision not apply and that payment be made <br/>
<a id="pl.11.16"></a><var>11.16</var>only to a designated beneficiary as otherwise provided by this chapter.<br/>
<a id="pl.11.17"></a><var>11.17</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.1.14.0"></a><a id="pl.11.18"></a><var>11.18</var>    Sec. 14. Minnesota Statutes 2009 Supplement, section 352.95, subdivision 2, is <br/>
<a id="pl.11.19"></a><var>11.19</var>amended to read:<br/>
<a id="pl.11.20"></a><var>11.20</var>    Subd. 2. <b>Regular disability; computation of benefit.</b> A covered correctional <br/>
<a id="pl.11.21"></a><var>11.21</var>employee who was hired before July 1, 2009, after rendering at least one year of covered <br/>
<a id="pl.11.22"></a><var>11.22</var>correctional service, or a covered correctional employee who was first hired after June <br/>
<a id="pl.11.23"></a><var>11.23</var>30, 2009, after rendering at least three years of covered correctional plan service if first <br/>
<a id="pl.11.24"></a><var>11.24</var>employed as a correctional state employee before July 1, 2010, or after rendering at least <br/>
<a id="pl.11.25"></a><var>11.25</var>ten years of covered correctional plan service if first employed as a correctional state <br/>
<a id="pl.11.26"></a><var>11.26</var>employee after June 30, 2010, and who is determined to have a regular disability, physical <br/>
<a id="pl.11.27"></a><var>11.27</var>or psychological, as defined under section 
         <statute_ref>352.01, subdivision 17c</statute_ref>, is entitled to a regular <br/>
<a id="pl.11.28"></a><var>11.28</var>disability benefit. The regular disability benefit must be based on covered correctional <br/>
<a id="pl.11.29"></a><var>11.29</var>service only. The regular disability benefit must be computed as provided in section <br/>
<statute_ref><a id="pl.11.30"></a><var>11.30</var>352.93, subdivisions 1 and 2
         </statute_ref>. The regular disability benefit of a covered correctional <br/>
<a id="pl.11.31"></a><var>11.31</var>employee who was first hired before July 1, 2009, and who is determined to have a regular <br/>
<a id="pl.11.32"></a><var>11.32</var>disability, physical or psychological, under this subdivision must be computed as though <br/>
<a id="pl.11.33"></a><var>11.33</var>the employee had at least 15 years of covered correctional service.<br/>
<a id="pl.11.34"></a><var>11.34</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.1.15.0"></a><a id="pl.12.1"></a><var>12.1</var>    Sec. 15. Minnesota Statutes 2008, section 352B.02, as amended by Laws 2009, chapter <br/>
<a id="pl.12.2"></a><var>12.2</var>101, article 2, section 109; and Laws 2009, chapter 169, article 1, section 23; article 2, <br/>
<a id="pl.12.3"></a><var>12.3</var>section 16; and article 4, sections 3 and 4, is amended to read:<br/>
<a id="pl.12.4"></a><var>12.4</var><b>352B.02 STATE PATROL RETIREMENT FUND.</b><br/>
<a id="pl.12.5"></a><var>12.5</var>    Subdivision 1. <b>Fund created; membership.</b> A State Patrol retirement fund <br/>
<a id="pl.12.6"></a><var>12.6</var>is established. Its membership consists of all persons defined in section 
         <statute_ref>352B.011, <br/>
<a id="pl.12.7"></a><var>12.7</var>subdivision 10
         </statute_ref>. <br/>
<a id="pl.12.8"></a><var>12.8</var>    Subd. 1a. <b>Member contributions.</b> (a) The member contribution is 
         <statute_ref>10.40 </statute_ref>percent <br/>
<a id="pl.12.9"></a><var>12.9</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.12.10"></a><var>12.10</var><br/>
<a id="pl.12.11"></a><var>12.11</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.12.12"></a><var>12.12</var><br/>
<a id="pl.12.13"></a><var>12.13</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>11.20 percent<br/>
</td>
</tr>
</table><a id="pl.12.14"></a><var>12.14</var>(b) These contributions must be made by deduction from salary as provided in <br/>
<a id="pl.12.15"></a><var>12.15</var>section 
         <statute_ref>352.04</statute_ref>, subdivision 4.<br/>
<a id="pl.12.16"></a><var>12.16</var>    Subd. 1b. <b>Salary deductions.</b> Member contribution amounts must be deducted each <br/>
<a id="pl.12.17"></a><var>12.17</var>pay period by the department head, who shall have the total amount of the deductions paid <br/>
<a id="pl.12.18"></a><var>12.18</var>to the commissioner of management and budget for deposit in the State Patrol retirement <br/>
<a id="pl.12.19"></a><var>12.19</var>fund, and have a detailed report of all deductions made each pay period to the executive <br/>
<a id="pl.12.20"></a><var>12.20</var>director of the Minnesota State Retirement System.<br/>
<a id="pl.12.21"></a><var>12.21</var>    Subd. 1c. <b>Employer contributions.</b> (a) In addition to member contributions, <br/>
<a id="pl.12.22"></a><var>12.22</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.12.23"></a><var>12.23</var>salary upon which deductions were made, which constitutes the employer contribution <br/>
<a id="pl.12.24"></a><var>12.24</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.12.25"></a><var>12.25</var><br/>
<a id="pl.12.26"></a><var>12.26</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.12.27"></a><var>12.27</var><br/>
<a id="pl.12.28"></a><var>12.28</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>16.80 percent<br/>
</td>
</tr>
</table><a id="pl.12.29"></a><var>12.29</var>(b) Department contributions must be paid out of money appropriated to departments <br/>
<a id="pl.12.30"></a><var>12.30</var>for this purpose.<br/>
<a id="pl.12.31"></a><var>12.31</var>    Subd. 1d. <b>Additional employer contributions.</b> (a) In addition to the regular <br/>
<a id="pl.12.32"></a><var>12.32</var>employer contribution under subdivision 1c, department heads shall pay a sum equal to <br/>
<a id="pl.12.33"></a><var>12.33</var>ten percent of the salary upon which member contribution deductions were made, which is <br/>
<a id="pl.12.34"></a><var>12.34</var>the additional employer contribution to the fund.<br/>
<a id="pl.12.35"></a><var>12.35</var>(b) Department additional employer contributions must be paid from departmental <br/>
<a id="pl.12.36"></a><var>12.36</var>appropriations or revenue.<br/>
<a id="pl.13.1"></a><var>13.1</var>    Subd. 1d 1e. <b>Fund revenue and expenses.</b> The amounts provided for in this section <br/>
<a id="pl.13.2"></a><var>13.2</var>must be credited to the State Patrol retirement fund. All money received must be deposited <br/>
<a id="pl.13.3"></a><var>13.3</var>by the commissioner of management and budget in the State Patrol retirement fund. The <br/>
<a id="pl.13.4"></a><var>13.4</var>fund must be used to pay the administrative expenses of the retirement fund, and the <br/>
<a id="pl.13.5"></a><var>13.5</var>benefits and annuities provided in this chapter. <br/>
<a id="pl.13.6"></a><var>13.6</var>    Subd. 1e 1f. <b>Audit; </b><b>regular </b><b>actuarial valuation</b><b>; supplemental valuations</b><b>.</b> (a) <br/>
<a id="pl.13.7"></a><var>13.7</var>The legislative auditor shall audit the fund.<br/>
<a id="pl.13.8"></a><var>13.8</var>(b) Any actuarial valuation of the fund required under section 
         <statute_ref>356.215</statute_ref> must be <br/>
<a id="pl.13.9"></a><var>13.9</var>prepared by the actuary retained under section 
         <statute_ref>356.214</statute_ref>.<br/>
<a id="pl.13.10"></a><var>13.10</var>(c) Any approved actuary retained by the executive director under section 
         <statute_ref>352.03, <br/>
<a id="pl.13.11"></a><var>13.11</var>subdivision 6
         </statute_ref>, may perform actuarial valuations and experience studies to supplement <br/>
<a id="pl.13.12"></a><var>13.12</var>those performed by the actuary retained under section 
         <statute_ref>356.214</statute_ref>. Any supplemental <br/>
<a id="pl.13.13"></a><var>13.13</var>actuarial valuation or experience studies must be filed with the executive director of the <br/>
<a id="pl.13.14"></a><var>13.14</var>Legislative Commission on Pensions and Retirement.<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.1.16.0"></a><a id="pl.13.16"></a><var>13.16</var>    Sec. 16. Minnesota Statutes 2008, section 352B.08, subdivision 1, is amended to read:<br/>
<a id="pl.13.17"></a><var>13.17</var>    Subdivision 1. <b>Eligibility; when to apply; accrual.</b> (a) Every member who is <br/>
<a id="pl.13.18"></a><var>13.18</var>credited with three or more years of allowable service if first employed before July 1, <br/>
<a id="pl.13.19"></a><var>13.19</var>2010, or with at least five years of allowable service if first employed after June 30, 2010, <br/>
<a id="pl.13.20"></a><var>13.20</var>is entitled to separate from state service and upon becoming 50 years old, is entitled to <br/>
<a id="pl.13.21"></a><var>13.21</var>receive a life annuity, upon separation from state service.<br/>
<a id="pl.13.22"></a><var>13.22</var>(b) Members shall must apply for an annuity in a form and manner prescribed by the <br/>
<a id="pl.13.23"></a><var>13.23</var>executive director.<br/>
<a id="pl.13.24"></a><var>13.24</var>(c) No application may be made more than 90 days before the date the member is <br/>
<a id="pl.13.25"></a><var>13.25</var>eligible to retire by reason of both age and service requirements.<br/>
<a id="pl.13.26"></a><var>13.26</var>(d) An annuity begins to accrue no earlier than 180 days before the date the <br/>
<a id="pl.13.27"></a><var>13.27</var>application is filed with the executive director.<br/>
<a id="pl.13.28"></a><var>13.28</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.1.17.0"></a><a id="pl.13.29"></a><var>13.29</var>    Sec. 17. Minnesota Statutes 2008, section 352B.08, subdivision 2a, is amended to read:<br/>
<a id="pl.13.30"></a><var>13.30</var>    Subd. 2a. <b>Early retirement.</b> Any member who has become at least 50 years old and <br/>
<a id="pl.13.31"></a><var>13.31</var>who has at least three years of allowable service if first employed before July 1, 2010, or <br/>
<a id="pl.13.32"></a><var>13.32</var>who has at least five years of allowable service if first employed after June 30, 2010, is <br/>
<a id="pl.13.33"></a><var>13.33</var>entitled upon application to a reduced retirement annuity equal to the annuity calculated <br/>
<a id="pl.14.1"></a><var>14.1</var>under subdivision 2, reduced by one-tenth of one percent for each month that the member <br/>
<a id="pl.14.2"></a><var>14.2</var>is under age 55 at the time of retirement if first employed before July 1, 2010, or reduced <br/>
<a id="pl.14.3"></a><var>14.3</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.14.4"></a><var>14.4</var>retirement if first employed after June 30, 2010.<br/>
<a id="pl.14.5"></a><var>14.5</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.1.18.0"></a><a id="pl.14.6"></a><var>14.6</var>    Sec. 18. Minnesota Statutes 2008, section 352B.11, subdivision 2b, is amended to read:<br/>
<a id="pl.14.7"></a><var>14.7</var>    Subd. 2b. <b>Surviving spouse benefit eligibility.</b> (a) If an active member with three or <br/>
<a id="pl.14.8"></a><var>14.8</var>more years of allowable service if first employed before July 1, 2010, or with at least five <br/>
<a id="pl.14.9"></a><var>14.9</var>years of allowable service if first employed after June 30, 2010, dies before attaining age <br/>
<a id="pl.14.10"></a><var>14.10</var>55, the surviving spouse is entitled to the benefit specified in subdivision 2c, paragraph (b).<br/>
<a id="pl.14.11"></a><var>14.11</var>(b) If an active member with less than three years of allowable service if first <br/>
<a id="pl.14.12"></a><var>14.12</var>employed before July 1, 2010, or with fewer than five years of allowable service if first <br/>
<a id="pl.14.13"></a><var>14.13</var>employed after June 30, 2010, dies at any age, the surviving spouse is entitled to receive <br/>
<a id="pl.14.14"></a><var>14.14</var>the benefit specified in subdivision 2c, paragraph (c).<br/>
<a id="pl.14.15"></a><var>14.15</var>(c) If an active member with three or more years of allowable service if first <br/>
<a id="pl.14.16"></a><var>14.16</var>employed before July 1, 2010, or with at least five years of allowable service if first <br/>
<a id="pl.14.17"></a><var>14.17</var>employed after June 30, 2010, dies on or after attaining exact age 55, the surviving spouse <br/>
<a id="pl.14.18"></a><var>14.18</var>is entitled to receive the benefits specified in subdivision 2c, paragraph (d).<br/>
<a id="pl.14.19"></a><var>14.19</var>(d) If a disabilitant dies while receiving a disability benefit under section 
         <statute_ref>352B.10</statute_ref> or <br/>
<a id="pl.14.20"></a><var>14.20</var>before the benefit under that section commenced, and an optional annuity was not elected <br/>
<a id="pl.14.21"></a><var>14.21</var>under section 
         <statute_ref>352B.10, subdivision 5</statute_ref>, the surviving spouse is entitled to receive the benefit <br/>
<a id="pl.14.22"></a><var>14.22</var>specified in subdivision 2c, paragraph (b).  <br/>
<a id="pl.14.23"></a><var>14.23</var>(e) If a former member with three or more years of allowable service if first <br/>
<a id="pl.14.24"></a><var>14.24</var>employed before July 1, 2010, or with at least five years of allowable service if first <br/>
<a id="pl.14.25"></a><var>14.25</var>employed after June 30, 2010, who terminated from service and has not received a refund <br/>
<a id="pl.14.26"></a><var>14.26</var>or commenced receipt of any other benefit provided by this chapter, dies, the surviving <br/>
<a id="pl.14.27"></a><var>14.27</var>spouse is entitled to receive the benefit specified in subdivision 2c, paragraph (e).<br/>
<a id="pl.14.28"></a><var>14.28</var>(f) If a former member with less than three years of allowable service if first <br/>
<a id="pl.14.29"></a><var>14.29</var>employed before July 1, 2010, or with fewer than five years of allowable service if first <br/>
<a id="pl.14.30"></a><var>14.30</var>employed after June 30, 2010, who terminated from service and has not received a refund <br/>
<a id="pl.14.31"></a><var>14.31</var>or commenced receipt of any other benefit, if applicable, provided by this chapter, dies, the <br/>
<a id="pl.14.32"></a><var>14.32</var>surviving spouse is entitled to receive the refund specified in subdivision 2c, paragraph (f).<br/>
<a id="pl.14.33"></a><var>14.33</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.1.19.0"></a><a id="pl.15.1"></a><var>15.1</var>    Sec. 19. Minnesota Statutes 2008, section 352B.30, subdivision 1, is amended to read:<br/>
<a id="pl.15.2"></a><var>15.2</var>    Subdivision 1. <b>Entitlement to annuity.</b> Any person who has been an employee <br/>
<a id="pl.15.3"></a><var>15.3</var>covered by the Minnesota State Retirement System, or a member of the Public Employees <br/>
<a id="pl.15.4"></a><var>15.4</var>Retirement Association including the Public Employees Retirement Association Police <br/>
<a id="pl.15.5"></a><var>15.5</var>and Fire Fund, or the Teachers Retirement Association, or the State Patrol retirement fund, <br/>
<a id="pl.15.6"></a><var>15.6</var>or any other public employee retirement system in Minnesota having a like provision but <br/>
<a id="pl.15.7"></a><var>15.7</var>excluding all other funds providing benefits for police or firefighters is entitled when <br/>
<a id="pl.15.8"></a><var>15.8</var>qualified to an annuity from each fund if total allowable service in all funds or in any two <br/>
<a id="pl.15.9"></a><var>15.9</var>of these funds totals three or more the number of years of allowable service required by <br/>
<a id="pl.15.10"></a><var>15.10</var>the applicable retirement plan with the longest vesting period for the person. No part of <br/>
<a id="pl.15.11"></a><var>15.11</var>the allowable service upon which the retirement annuity from one fund is based may <br/>
<a id="pl.15.12"></a><var>15.12</var>again be used in the computation for benefits from another fund. The member must not <br/>
<a id="pl.15.13"></a><var>15.13</var>have taken a refund from any one of these funds since service entitling the member to <br/>
<a id="pl.15.14"></a><var>15.14</var>coverage under the system or membership in any of the associations last terminated. <br/>
<a id="pl.15.15"></a><var>15.15</var>The annuity from each fund must be determined by the appropriate law except that the <br/>
<a id="pl.15.16"></a><var>15.16</var>requirement that a person must have at least three a specific number of years allowable <br/>
<a id="pl.15.17"></a><var>15.17</var>service in the respective system or association does not apply for the purposes of this <br/>
<a id="pl.15.18"></a><var>15.18</var>section if the combined service in two or more of these funds equals three or more the <br/>
<a id="pl.15.19"></a><var>15.19</var>number of years of allowable service required by the applicable retirement plan with <br/>
<a id="pl.15.20"></a><var>15.20</var>the longest vesting period for the person.<br/>
<a id="pl.15.21"></a><var>15.21</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.1.20.0"></a><a id="pl.15.22"></a><var>15.22</var>    Sec. 20. Minnesota Statutes 2008, section 352B.30, subdivision 2, is amended to read:<br/>
<a id="pl.15.23"></a><var>15.23</var>    Subd. 2. <b>Computation of deferred annuity.</b> Deferred annuities must be computed <br/>
<a id="pl.15.24"></a><var>15.24</var>according to this chapter on the basis of allowable service before termination of service <br/>
<a id="pl.15.25"></a><var>15.25</var>and augmented as provided in this chapter. The required reserves applicable to a deferred <br/>
<a id="pl.15.26"></a><var>15.26</var>annuity must be augmented by interest compounded annually from the first day of the <br/>
<a id="pl.15.27"></a><var>15.27</var>month following the month in which the member terminated service, or July 1, 1971, <br/>
<a id="pl.15.28"></a><var>15.28</var>whichever is later, to the first day of the month in which the annuity begins to accrue. The <br/>
<a id="pl.15.29"></a><var>15.29</var>rates of interest used for this purpose shall must be five percent per year compounded <br/>
<a id="pl.15.30"></a><var>15.30</var>annually until January 1, 1981, and after that date three percent per year compounded <br/>
<a id="pl.15.31"></a><var>15.31</var>annually after January 1, 1981, until January 1, 2012, if the employee became an employee <br/>
<a id="pl.15.32"></a><var>15.32</var>before July 1, 2006, and at 2.5 percent compounded annually if the employee becomes <br/>
<a id="pl.15.33"></a><var>15.33</var>an employee after June 30, 2006, and two percent per year compounded annually after <br/>
<a id="pl.15.34"></a><var>15.34</var>December 31, 2011, irrespective of when the employee was first employed. The mortality <br/>
<a id="pl.16.1"></a><var>16.1</var>table and interest assumption used to compute the annuity shall must be those in effect <br/>
<a id="pl.16.2"></a><var>16.2</var>when the member files application for annuity.<br/>
<a id="pl.16.3"></a><var>16.3</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.1.21.0"></a><a id="pl.16.4"></a><var>16.4</var>    Sec. 21. Minnesota Statutes 2008, section 352F.07, is amended to read:<br/>
<a id="pl.16.5"></a><var>16.5</var><b>352F.07 EFFECT ON REFUND.</b><br/>
<a id="pl.16.6"></a><var>16.6</var>Notwithstanding any provision of chapter 352 to the contrary, terminated hospital <br/>
<a id="pl.16.7"></a><var>16.7</var>employees may receive a refund of employee accumulated contributions plus interest <br/>
<a id="pl.16.8"></a><var>16.8</var>at the rate of six percent per year compounded annually in accordance with Minnesota <br/>
<a id="pl.16.9"></a><var>16.9</var>Statutes 1994, section 
         <statute_ref>352.22, subdivision 2</statute_ref>, at any time after the transfer of employment <br/>
<a id="pl.16.10"></a><var>16.10</var>to Fairview, University of Minnesota Physicians, or University Affiliated Family <br/>
<a id="pl.16.11"></a><var>16.11</var>Physicians. If a terminated hospital employee has received a refund from a pension plan <br/>
<a id="pl.16.12"></a><var>16.12</var>enumerated in section 
         <statute_ref>356.30, subdivision 3</statute_ref>, the person may not repay that refund unless <br/>
<a id="pl.16.13"></a><var>16.13</var>the person again becomes a member of one of those enumerated plans and complies <br/>
<a id="pl.16.14"></a><var>16.14</var>with section 
         <statute_ref>356.30, subdivision 2</statute_ref>.  <br/>
<a id="pl.16.15"></a><var>16.15</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.1.22.0"></a><a id="pl.16.16"></a><var>16.16</var>    Sec. 22. Minnesota Statutes 2008, section 353.01, is amended by adding a subdivision <br/>
<a id="pl.16.17"></a><var>16.17</var>to read:<br/>
<a id="pl.16.18"></a><var>16.18</var>    Subd. 47. <b>Vesting.</b> (a) "Vesting" means obtaining a nonforfeitable entitlement <br/>
<a id="pl.16.19"></a><var>16.19</var>to an annuity or benefit from a retirement plan administered by the Public Employees <br/>
<a id="pl.16.20"></a><var>16.20</var>Retirement Association by having credit for sufficient allowable service under paragraph <br/>
<a id="pl.16.21"></a><var>16.21</var>(b) or (c), whichever applies.<br/>
<a id="pl.16.22"></a><var>16.22</var>(b) For purposes of qualifying for an annuity or benefit as a basic or coordinated plan <br/>
<a id="pl.16.23"></a><var>16.23</var>member of the general employees retirement plan of the Public Employees Retirement <br/>
<a id="pl.16.24"></a><var>16.24</var>Association:<br/>
<a id="pl.16.25"></a><var>16.25</var>(1) a member who first became a public employee before July 1, 2010, is vested <br/>
<a id="pl.16.26"></a><var>16.26</var>when the person has accrued credit for not less than three years of allowable service as <br/>
<a id="pl.16.27"></a><var>16.27</var>defined under subdivision 16; and<br/>
<a id="pl.16.28"></a><var>16.28</var>(2) a member who first becomes a public employee after June 30, 2010, is vested <br/>
<a id="pl.16.29"></a><var>16.29</var>when the person has accrued credit for not less than five years of allowable service <br/>
<a id="pl.16.30"></a><var>16.30</var>as defined under subdivision 16.<br/>
<a id="pl.16.31"></a><var>16.31</var>(c) For purposes of qualifying for an annuity or benefit as a member of the police <br/>
<a id="pl.16.32"></a><var>16.32</var>and fire plan or a member of the local government correctional employees retirement plan:<br/>
<a id="pl.17.1"></a><var>17.1</var>(1) a member who first became a public employee before July 1, 2010, is vested <br/>
<a id="pl.17.2"></a><var>17.2</var>when the person has accrued credit for not less than three years of allowable service as <br/>
<a id="pl.17.3"></a><var>17.3</var>defined under subdivision 16; and<br/>
<a id="pl.17.4"></a><var>17.4</var>(2) a member who first becomes a public employee after June 30, 2010, is vested <br/>
<a id="pl.17.5"></a><var>17.5</var>at the following percentages when the person has accrued credited allowable service as <br/>
<a id="pl.17.6"></a><var>17.6</var>defined under subdivision 16, as follows:<br/>
<a id="pl.17.7"></a><var>17.7</var>(i) 50 percent after five years;<br/>
<a id="pl.17.8"></a><var>17.8</var>(ii) 60 percent after six years;<br/>
<a id="pl.17.9"></a><var>17.9</var>(iii) 70 percent after seven years;<br/>
<a id="pl.17.10"></a><var>17.10</var>(iv) 80 percent after eight years;<br/>
<a id="pl.17.11"></a><var>17.11</var>(v) 90 percent after nine years; and<br/>
<a id="pl.17.12"></a><var>17.12</var>(vi) 100 percent after ten years.<br/>
<a id="pl.17.13"></a><var>17.13</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.1.23.0"></a><a id="pl.17.14"></a><var>17.14</var>    Sec. 23. Minnesota Statutes 2009 Supplement, section 353.27, subdivision 2, is <br/>
<a id="pl.17.15"></a><var>17.15</var>amended to read:<br/>
<a id="pl.17.16"></a><var>17.16</var>    Subd. 2. <b>Employee contribution.</b> (a) For a basic member, the employee <br/>
<a id="pl.17.17"></a><var>17.17</var>contribution is 9.10 percent of salary. For a coordinated member, the employee <br/>
<a id="pl.17.18"></a><var>17.18</var>contribution is six percent the following percentage of salary plus any contribution rate <br/>
<a id="pl.17.19"></a><var>17.19</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.17.20"></a><var>17.20</var><br/>
</td>
<td></td>
<td>Effective before January 1, 2011<br/>
</td>
<td>6.00<br/>
</td>
</tr>
<tr>
<td><a id="pl.17.21"></a><var>17.21</var><br/>
</td>
<td></td>
<td>Effective after December 31, 2010<br/>
</td>
<td>6.25<br/>
</td>
</tr>
</table><a id="pl.17.22"></a><var>17.22</var>(b) These contributions must be made by deduction from salary as defined in section <br/>
<statute_ref><a id="pl.17.23"></a><var>17.23</var>353.01, subdivision 10
         </statute_ref>, in the manner provided in subdivision 4. If any portion of a <br/>
<a id="pl.17.24"></a><var>17.24</var>member's salary is paid from other than public funds, the member's employee contribution <br/>
<a id="pl.17.25"></a><var>17.25</var>must be based on the total salary received by the member from all sources.<br/>
<a id="pl.17.26"></a><var>17.26</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.1.24.0"></a><a id="pl.17.27"></a><var>17.27</var>    Sec. 24. Minnesota Statutes 2009 Supplement, section 353.27, subdivision 3, is <br/>
<a id="pl.17.28"></a><var>17.28</var>amended to read:<br/>
<a id="pl.17.29"></a><var>17.29</var>    Subd. 3. <b>Employer contribution.</b> (a) For a basic member, the employer <br/>
<a id="pl.17.30"></a><var>17.30</var>contribution is 9.10 percent of salary. For a coordinated member, the employer <br/>
<a id="pl.17.31"></a><var>17.31</var>contribution is six percent the following percentage of salary plus any contribution rate <br/>
<a id="pl.17.32"></a><var>17.32</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.18.1"></a><var>18.1</var><br/>
</td>
<td></td>
<td>Effective before January 1, 2011<br/>
</td>
<td>6.00<br/>
</td>
</tr>
<tr>
<td><a id="pl.18.2"></a><var>18.2</var><br/>
</td>
<td></td>
<td>Effective after December 31, 2010<br/>
</td>
<td>6.25<br/>
</td>
</tr>
</table><a id="pl.18.3"></a><var>18.3</var>(b) This contribution must be made from funds available to the employing <br/>
<a id="pl.18.4"></a><var>18.4</var>subdivision by the means and in the manner provided in section 
         <statute_ref>353.28</statute_ref>.<br/>
<a id="pl.18.5"></a><var>18.5</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.1.25.0"></a><a id="pl.18.6"></a><var>18.6</var>    Sec. 25. Minnesota Statutes 2008, section 353.27, subdivision 3b, is amended to read:<br/>
<a id="pl.18.7"></a><var>18.7</var>    Subd. 3b. <b>Change in employee and employer contributions in certain instances.</b><br/>
<a id="pl.18.8"></a><var>18.8</var>(a) For purposes of this section,:<br/>
<a id="pl.18.9"></a><var>18.9</var>(1) a contribution sufficiency exists if the total of the employee contribution under <br/>
<a id="pl.18.10"></a><var>18.10</var>subdivision 2, the employer contribution under subdivision 3, the additional employer <br/>
<a id="pl.18.11"></a><var>18.11</var>contribution under subdivision 3a, and any additional contribution previously imposed <br/>
<a id="pl.18.12"></a><var>18.12</var>under this subdivision exceeds the total of the normal cost, the administrative expenses, <br/>
<a id="pl.18.13"></a><var>18.13</var>and the amortization contribution of the retirement plan as reported in the most recent <br/>
<a id="pl.18.14"></a><var>18.14</var>actuarial valuation of the retirement plan prepared by the actuary retained under section <br/>
<statute_ref><a id="pl.18.15"></a><var>18.15</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.18.16"></a><var>18.16</var>Legislative Commission on Pensions and Retirement. For purposes of this section,; and<br/>
<a id="pl.18.17"></a><var>18.17</var>(2) a contribution deficiency exists if the total of the employee contributions under <br/>
<a id="pl.18.18"></a><var>18.18</var>subdivision 2, the employer contributions under subdivision 3, the additional employer <br/>
<a id="pl.18.19"></a><var>18.19</var>contribution under subdivision 3a, and any additional contribution previously imposed <br/>
<a id="pl.18.20"></a><var>18.20</var>under this subdivision is less than the total of the normal cost, the administrative expenses, <br/>
<a id="pl.18.21"></a><var>18.21</var>and the amortization contribution of the retirement plan as reported in the most recent <br/>
<a id="pl.18.22"></a><var>18.22</var>actuarial valuation of the retirement plan prepared by the actuary retained under section <br/>
<statute_ref><a id="pl.18.23"></a><var>18.23</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.18.24"></a><var>18.24</var>Legislative Commission on Pensions and Retirement.<br/>
<a id="pl.18.25"></a><var>18.25</var>(b) Employee and employer contributions under subdivisions 2 and 3 must be <br/>
<a id="pl.18.26"></a><var>18.26</var>adjusted:<br/>
<a id="pl.18.27"></a><var>18.27</var>(1) if, on or after July 1, 2010, the regular actuarial valuations valuation of the <br/>
<a id="pl.18.28"></a><var>18.28</var>general employees retirement plan of the Public Employees Retirement Association under <br/>
<a id="pl.18.29"></a><var>18.29</var>section 
         <statute_ref>356.215</statute_ref> indicate indicates that there is a contribution sufficiency under paragraph <br/>
<a id="pl.18.30"></a><var>18.30</var>(a) equal to or greater than 0.5 one percent of covered payroll and that the sufficiency <br/>
<a id="pl.18.31"></a><var>18.31</var>has existed for at least two consecutive years, the coordinated program employee and <br/>
<a id="pl.18.32"></a><var>18.32</var>employer contribution rates must be decreased as determined under paragraph (c) to a <br/>
<a id="pl.18.33"></a><var>18.33</var>level such that the sufficiency equals is no more greater than 0.25 one percent of covered <br/>
<a id="pl.18.34"></a><var>18.34</var>payroll based on the most recent actuarial valuation; or<br/>
<a id="pl.19.1"></a><var>19.1</var>(2) if, on or after July 1, 2010, the regular actuarial valuations valuation of the <br/>
<a id="pl.19.2"></a><var>19.2</var>general employees retirement plan of the Public Employees Retirement Association under <br/>
<a id="pl.19.3"></a><var>19.3</var>section 
         <statute_ref>356.215</statute_ref> indicate indicates that there is a contribution deficiency equal to or greater <br/>
<a id="pl.19.4"></a><var>19.4</var>than 0.5 percent of covered payroll and that the deficiency has existed for at least two <br/>
<a id="pl.19.5"></a><var>19.5</var>consecutive years, the coordinated program employee and employer contribution rates <br/>
<a id="pl.19.6"></a><var>19.6</var>must be increased as determined under paragraph (c) (d) to a level such that no deficiency <br/>
<a id="pl.19.7"></a><var>19.7</var>exists based on the most recent actuarial valuation.<br/>
<a id="pl.19.8"></a><var>19.8</var>(c) The contribution rate increase or decrease must be determined by the executive <br/>
<a id="pl.19.9"></a><var>19.9</var>director of the Public Employees Retirement Association, must be reported to the chair <br/>
<a id="pl.19.10"></a><var>19.10</var>and the executive director of the Legislative Commission on Pensions and Retirement <br/>
<a id="pl.19.11"></a><var>19.11</var>on or before the next February 1, and, if the Legislative Commission on Pensions and <br/>
<a id="pl.19.12"></a><var>19.12</var>Retirement does not recommend against the rate change or does not recommend a <br/>
<a id="pl.19.13"></a><var>19.13</var>modification in the rate change, is effective on the next July 1 following the determination <br/>
<a id="pl.19.14"></a><var>19.14</var>by the executive director that a contribution deficiency or sufficiency has existed for <br/>
<a id="pl.19.15"></a><var>19.15</var>two consecutive fiscal years based on the most recent actuarial valuations under section <br/>
<a id="pl.19.16"></a><var>19.16</var><statute_ref>356.215</statute_ref>. If the actuarially required contribution exceeds or is less than the total support <br/>
<a id="pl.19.17"></a><var>19.17</var>provided by the combined employee and employer contribution rates under subdivisions <br/>
<a id="pl.19.18"></a><var>19.18</var>2, 3, and 3a, by more than 0.5 one percent of covered payroll, the coordinated program <br/>
<a id="pl.19.19"></a><var>19.19</var>employee and employer contribution rates under subdivisions 2 and 3 must be adjusted <br/>
<a id="pl.19.20"></a><var>19.20</var>decreased incrementally over one or more years by no more than 0.25 percent of pay each <br/>
<a id="pl.19.21"></a><var>19.21</var>for employee and employer matching contribution rates to a level such that there remains <br/>
<a id="pl.19.22"></a><var>19.22</var>a contribution sufficiency of no more than 0.25 at least one percent of covered payroll. No <br/>
<a id="pl.19.23"></a><var>19.23</var>contribution rate decrease may be made until at least two years have elapsed since any <br/>
<a id="pl.19.24"></a><var>19.24</var>adjustment under this subdivision has been fully implemented.<br/>
<a id="pl.19.25"></a><var>19.25</var>(d) No If the actuarially required contribution exceeds the total support provided <br/>
<a id="pl.19.26"></a><var>19.26</var>by the combined employee and employer contribution rates under subdivisions 2, 3, and <br/>
<a id="pl.19.27"></a><var>19.27</var>3a, the employee and matching employer contribution rates must be increased equally to <br/>
<a id="pl.19.28"></a><var>19.28</var>eliminate that contribution deficiency. If the contribution deficiency is:<br/>
<a id="pl.19.29"></a><var>19.29</var>(1) less than two percent, the incremental adjustment increase may exceed be up <br/>
<a id="pl.19.30"></a><var>19.30</var>to 0.25 percent for either the coordinated program employee and matching employer <br/>
<a id="pl.19.31"></a><var>19.31</var>contribution rates per year in which any adjustment is implemented. A contribution rate <br/>
<a id="pl.19.32"></a><var>19.32</var>adjustment under this subdivision must not be made until at least two years have passed <br/>
<a id="pl.19.33"></a><var>19.33</var>since fully implementing a previous adjustment under this subdivision.;<br/>
<a id="pl.19.34"></a><var>19.34</var>(2) greater than 1.99 percent and less than 4.01 percent, the incremental increase <br/>
<a id="pl.19.35"></a><var>19.35</var>may be up to 0.5 percent for the employee and matching employer contribution rates; or<br/>
<a id="pl.20.1"></a><var>20.1</var>(3) greater than four percent, the incremental increase may be up to 0.75 percent for <br/>
<a id="pl.20.2"></a><var>20.2</var>the employee and matching employer contribution.<br/>
<a id="pl.20.3"></a><var>20.3</var>(e) Any recommended adjustment to the contribution rates must be reported <br/>
<a id="pl.20.4"></a><var>20.4</var>to the chair and the executive director of the Legislative Commission on Pensions <br/>
<a id="pl.20.5"></a><var>20.5</var>and Retirement by January 15 following receipt of the most recent annual actuarial <br/>
<a id="pl.20.6"></a><var>20.6</var>valuation prepared under section 356.215. If the Legislative Commission on Pensions <br/>
<a id="pl.20.7"></a><var>20.7</var>and Retirement does not recommend against the rate change or does not recommend a <br/>
<a id="pl.20.8"></a><var>20.8</var>modification in the rate change, the recommended adjustment becomes effective on the <br/>
<a id="pl.20.9"></a><var>20.9</var>first day of the first full payroll period in the fiscal year following receipt of the most <br/>
<a id="pl.20.10"></a><var>20.10</var>recent actuarial valuation that gave rise to the adjustment.<br/>
<a id="pl.20.11"></a><var>20.11</var>(f) A contribution sufficiency of up to one percent of covered payroll must be held in <br/>
<a id="pl.20.12"></a><var>20.12</var>reserve to be used to offset any future actuarially required contributions that are more than <br/>
<a id="pl.20.13"></a><var>20.13</var>the total combined employee and employer contributions under subdivisions 2, 3, and 3a.<br/>
<a id="pl.20.14"></a><var>20.14</var>(g) Before any reduction in contributions to eliminate a sufficiency in excess of one <br/>
<a id="pl.20.15"></a><var>20.15</var>percent of covered pay may be recommended, the executive director must review any <br/>
<a id="pl.20.16"></a><var>20.16</var>need for a change in actuarial assumptions, as recommended by the actuary retained under <br/>
<a id="pl.20.17"></a><var>20.17</var>section 356.214 in the most recent experience study of the general employees retirement <br/>
<a id="pl.20.18"></a><var>20.18</var>plan prepared under section 356.215 and the standards for actuarial work promulgated by <br/>
<a id="pl.20.19"></a><var>20.19</var>the Legislative Commission on Pensions and Retirement that may result in an increase <br/>
<a id="pl.20.20"></a><var>20.20</var>in the actuarially required contribution and must report to the Legislative Commission <br/>
<a id="pl.20.21"></a><var>20.21</var>on Pensions and Retirement any recommendation by the board to use the sufficiency <br/>
<a id="pl.20.22"></a><var>20.22</var>exceeding one percent of covered payroll to offset the impact of an actuarial assumption <br/>
<a id="pl.20.23"></a><var>20.23</var>change recommended by the actuary retained under section 356.214, subdivision 1, and <br/>
<a id="pl.20.24"></a><var>20.24</var>reviewed by the actuary retained by the commission under section 356.214, subdivision 4.<br/>
<a id="pl.20.25"></a><var>20.25</var>(h) No contribution sufficiency in excess of one percent of covered pay may be <br/>
<a id="pl.20.26"></a><var>20.26</var>proposed to be used to increase benefits, and no benefit increase may be proposed that <br/>
<a id="pl.20.27"></a><var>20.27</var>would initiate an automatic adjustment to increase contributions under this subdivision. <br/>
<a id="pl.20.28"></a><var>20.28</var>Any proposed benefit improvement must include a recommendation, prepared by the <br/>
<a id="pl.20.29"></a><var>20.29</var>actuary retained under section 356.214, subdivision 1, and reviewed by the actuary <br/>
<a id="pl.20.30"></a><var>20.30</var>retained by the Legislative Commission on Pensions and Retirement as provided under <br/>
<a id="pl.20.31"></a><var>20.31</var>section 356.214, subdivision 4, on how the benefit modification will be funded.<br/>
<a id="pl.20.32"></a><var>20.32</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.1.26.0"></a><a id="pl.20.33"></a><var>20.33</var>    Sec. 26. Minnesota Statutes 2008, section 353.29, subdivision 1, is amended to read:<br/>
<a id="pl.20.34"></a><var>20.34</var>    Subdivision 1. <b>Age and allowable service requirements.</b> Upon termination of <br/>
<a id="pl.20.35"></a><var>20.35</var>membership, a person who has attained normal retirement age and who received credit for <br/>
<a id="pl.21.1"></a><var>21.1</var>not less than three years of allowable service is vested under section 353.01, subdivision <br/>
<a id="pl.21.2"></a><var>21.2</var>47, is entitled upon application to a retirement annuity. The retirement annuity is known <br/>
<a id="pl.21.3"></a><var>21.3</var>as the "normal" retirement annuity.<br/>
<a id="pl.21.4"></a><var>21.4</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.1.27.0"></a><a id="pl.21.5"></a><var>21.5</var>    Sec. 27. Minnesota Statutes 2008, section 353.30, subdivision 1c, is amended to read:<br/>
<a id="pl.21.6"></a><var>21.6</var>    Subd. 1c. <b>Pre-July 1, 1989, members: early retirement.</b> Upon termination of <br/>
<a id="pl.21.7"></a><var>21.7</var>public service, a person who first became a public employee or a member of a pension <br/>
<a id="pl.21.8"></a><var>21.8</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.21.9"></a><var>21.9</var>55 years old but not normal retirement age, and has received credit for at least three years <br/>
<a id="pl.21.10"></a><var>21.10</var>of allowable service is vested under section 353.01, subdivision 47, is entitled, upon <br/>
<a id="pl.21.11"></a><var>21.11</var>application, to a retirement annuity in an amount equal to the normal annuity provided in <br/>
<a id="pl.21.12"></a><var>21.12</var>section 
         <statute_ref>353.29, subdivision 3</statute_ref>, paragraph (a), reduced by one-quarter of one percent for <br/>
<a id="pl.21.13"></a><var>21.13</var>each month that the member is under normal retirement age at the time of retirement. <br/>
<a id="pl.21.14"></a><var>21.14</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.1.28.0"></a><a id="pl.21.15"></a><var>21.15</var>    Sec. 28. Minnesota Statutes 2008, section 353.32, subdivision 1, is amended to read:<br/>
<a id="pl.21.16"></a><var>21.16</var>    Subdivision 1. <b>Before retirement.</b> If a member or former member who terminated <br/>
<a id="pl.21.17"></a><var>21.17</var>public service dies before retirement or before receiving any retirement annuity and no <br/>
<a id="pl.21.18"></a><var>21.18</var>other payment of any kind is or may become payable to any person, a refund shall be paid <br/>
<a id="pl.21.19"></a><var>21.19</var>is payable to the designated beneficiary or, if there be none, to the surviving spouse, <br/>
<a id="pl.21.20"></a><var>21.20</var>or, if none, to the legal representative of the decedent's estate. Such The refund shall <br/>
<a id="pl.21.21"></a><var>21.21</var>must be in an amount equal to accumulated deductions plus annual compound interest <br/>
<a id="pl.21.22"></a><var>21.22</var>thereon at the rate of six percent per annum compounded annually specified in section <br/>
<a id="pl.21.23"></a><var>21.23</var>353.34, subdivision 2, and less the sum of any disability or survivor benefits, if any, that <br/>
<a id="pl.21.24"></a><var>21.24</var>may have been paid by the fund; provided that a survivor who has a right to benefits <br/>
<a id="pl.21.25"></a><var>21.25</var>pursuant to under section 
         <statute_ref>353.31</statute_ref> may waive such benefits in writing, except such benefits <br/>
<a id="pl.21.26"></a><var>21.26</var>for a dependent child under the age of 18 years may only be waived pursuant to under an <br/>
<a id="pl.21.27"></a><var>21.27</var>order of the district court.  <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.1.29.0"></a><a id="pl.21.29"></a><var>21.29</var>    Sec. 29. Minnesota Statutes 2008, section 353.32, subdivision 1a, is amended to read:<br/>
<a id="pl.21.30"></a><var>21.30</var>    Subd. 1a. <b>Surviving spouse optional annuity.</b> (a) If a member or former member <br/>
<a id="pl.21.31"></a><var>21.31</var>who has credit for not less than three years of allowable service is vested under section <br/>
<a id="pl.21.32"></a><var>21.32</var>353.01, subdivision 47, and who dies before the annuity or disability benefit begins to <br/>
<a id="pl.22.1"></a><var>22.1</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.22.2"></a><var>22.2</var>designation of beneficiary to the contrary, the surviving spouse may elect to receive, <br/>
<a id="pl.22.3"></a><var>22.3</var>instead of a refund with interest under subdivision 1, or surviving spouse benefits otherwise <br/>
<a id="pl.22.4"></a><var>22.4</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.22.5"></a><var>22.5</var>computed consistent with section 
         <statute_ref>353.30, subdivision 1a</statute_ref>, 1c, or 5, whichever is applicable. <br/>
<a id="pl.22.6"></a><var>22.6</var>    (b) If a member first became a public employee or a member of a pension fund listed <br/>
<a id="pl.22.7"></a><var>22.7</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.22.8"></a><var>22.8</var>of allowable service on the date of death, the surviving spouse may elect to receive a <br/>
<a id="pl.22.9"></a><var>22.9</var>100 percent joint and survivor annuity computed using section 
         <statute_ref>353.30, subdivision 1b</statute_ref>, <br/>
<a id="pl.22.10"></a><var>22.10</var>except that the early retirement reduction under that provision will be applied from age <br/>
<a id="pl.22.11"></a><var>22.11</var>62 back to age 55 and one-half of the early retirement reduction from age 55 back to <br/>
<a id="pl.22.12"></a><var>22.12</var>the age payment begins. <br/>
<a id="pl.22.13"></a><var>22.13</var>    (c) If a member who was under age 55 and has credit for at least three years of <br/>
<a id="pl.22.14"></a><var>22.14</var>allowable service who is vested under section 353.01, subdivision 47, dies, but did not <br/>
<a id="pl.22.15"></a><var>22.15</var>qualify for retirement on the date of death, the surviving spouse may elect to receive a <br/>
<a id="pl.22.16"></a><var>22.16</var>100 percent joint and survivor annuity computed using section 
         <statute_ref>353.30, subdivision 1c</statute_ref> or <br/>
<a id="pl.22.17"></a><var>22.17</var>5, as applicable, except that the early retirement reduction specified in the applicable <br/>
<a id="pl.22.18"></a><var>22.18</var>subdivision will be applied to age 55 and one-half of the early retirement reduction from <br/>
<a id="pl.22.19"></a><var>22.19</var>age 55 back to the age payment begins. <br/>
<a id="pl.22.20"></a><var>22.20</var>    (d) Notwithstanding the definition of surviving spouse in section 
         <statute_ref>353.01, subdivision <br/>
<a id="pl.22.21"></a><var>22.21</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.22.22"></a><var>22.22</var>spouse optional annuity if stipulated under the terms of a marriage dissolution decree filed <br/>
<a id="pl.22.23"></a><var>22.23</var>with the association. If there is no surviving spouse or child or children, a former spouse <br/>
<a id="pl.22.24"></a><var>22.24</var>may be entitled to a lump-sum refund payment under subdivision 1, if provided for in a <br/>
<a id="pl.22.25"></a><var>22.25</var>marriage dissolution decree, but not a monthly surviving spouse optional annuity, despite <br/>
<a id="pl.22.26"></a><var>22.26</var>the terms of a marriage dissolution decree filed with the association. <br/>
<a id="pl.22.27"></a><var>22.27</var>    (e) The surviving spouse eligible for surviving spouse benefits under paragraph (a) <br/>
<a id="pl.22.28"></a><var>22.28</var>may apply for the annuity at any time after the date on which the deceased employee <br/>
<a id="pl.22.29"></a><var>22.29</var>would have attained the required age for retirement based on the employee's allowable <br/>
<a id="pl.22.30"></a><var>22.30</var>service. The surviving spouse eligible for surviving spouse benefits under paragraph (b) or <br/>
<a id="pl.22.31"></a><var>22.31</var>(c) may apply for an annuity any time after the member's death. <br/>
<a id="pl.22.32"></a><var>22.32</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.22.33"></a><var>22.33</var>annuity or surviving spouse benefit payable under this subdivision. <br/>
<a id="pl.22.34"></a><var>22.34</var>    (g) An amount equal to any excess of the accumulated contributions that were <br/>
<a id="pl.22.35"></a><var>22.35</var>credited to the account of the deceased employee over and above the total of the annuities <br/>
<a id="pl.22.36"></a><var>22.36</var>paid and payable to the surviving spouse must be paid to the surviving spouse's estate. <br/>
<a id="pl.23.1"></a><var>23.1</var>    (h) A member may specify in writing, with the signed consent of the spouse, that <br/>
<a id="pl.23.2"></a><var>23.2</var>this subdivision does not apply and that payment may be made only to the designated <br/>
<a id="pl.23.3"></a><var>23.3</var>beneficiary as otherwise provided by this chapter. The waiver of a surviving spouse <br/>
<a id="pl.23.4"></a><var>23.4</var>annuity under this section does not make a dependent child eligible for benefits under <br/>
<a id="pl.23.5"></a><var>23.5</var>subdivision 1c. <br/>
<a id="pl.23.6"></a><var>23.6</var>    (i) If the deceased member or former member first became a public employee or a <br/>
<a id="pl.23.7"></a><var>23.7</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.23.8"></a><var>23.8</var>1, 1989, a survivor annuity computed under paragraph (a) or (c) must be computed as <br/>
<a id="pl.23.9"></a><var>23.9</var>specified in section 
         <statute_ref>353.30, subdivision 5</statute_ref>, except for the revised early retirement reduction <br/>
<a id="pl.23.10"></a><var>23.10</var>specified in paragraph (c), if paragraph (c) is the applicable provision.<br/>
<a id="pl.23.11"></a><var>23.11</var>    (j) For any survivor annuity determined under this subdivision, the payment is to be <br/>
<a id="pl.23.12"></a><var>23.12</var>based on the total allowable service that the member had accrued as of the date of death <br/>
<a id="pl.23.13"></a><var>23.13</var>and the age of the member and surviving spouse on that date.<br/>
<a id="pl.23.14"></a><var>23.14</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.1.30.0"></a><a id="pl.23.15"></a><var>23.15</var>    Sec. 30. Minnesota Statutes 2009 Supplement, section 353.33, subdivision 1, is <br/>
<a id="pl.23.16"></a><var>23.16</var>amended to read:<br/>
<a id="pl.23.17"></a><var>23.17</var>    Subdivision 1. <b>Age, service, and salary requirements.</b> (a) A coordinated or <br/>
<a id="pl.23.18"></a><var>23.18</var>basic member who has at least three years of allowable service is vested under section <br/>
<a id="pl.23.19"></a><var>23.19</var>353.01, subdivision 47, and who becomes totally and permanently disabled before normal <br/>
<a id="pl.23.20"></a><var>23.20</var>retirement age, upon application as defined under section 
         <statute_ref>353.031</statute_ref>, is entitled to a disability <br/>
<a id="pl.23.21"></a><var>23.21</var>benefit in an amount determined under subdivision 3.<br/>
<a id="pl.23.22"></a><var>23.22</var>(b) If the disabled person's public service has terminated at any time, at least two of <br/>
<a id="pl.23.23"></a><var>23.23</var>the required three years of allowable service required to be vested under section 353.01, <br/>
<a id="pl.23.24"></a><var>23.24</var>subdivision 47, must have been rendered after last becoming an active member. <br/>
<a id="pl.23.25"></a><var>23.25</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.1.31.0"></a><a id="pl.23.26"></a><var>23.26</var>    Sec. 31. Minnesota Statutes 2008, section 353.34, subdivision 1, is amended to read:<br/>
<a id="pl.23.27"></a><var>23.27</var>    Subdivision 1. <b>Refund or deferred annuity.</b> (a) A former member is entitled to <br/>
<a id="pl.23.28"></a><var>23.28</var>either a refund of accumulated employee deductions under subdivision 2, or to a deferred <br/>
<a id="pl.23.29"></a><var>23.29</var>annuity under subdivision 3. Application for a refund may not be made before the date of <br/>
<a id="pl.23.30"></a><var>23.30</var>termination of public service. Except as specified in paragraph (b), a refund must be paid <br/>
<a id="pl.23.31"></a><var>23.31</var>within 120 days following receipt of the application unless the applicant has again become <br/>
<a id="pl.23.32"></a><var>23.32</var>a public employee required to be covered by the association.<br/>
<a id="pl.24.1"></a><var>24.1</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.24.2"></a><var>24.2</var>a refund is not payable before termination of service under section 
         <statute_ref>353.01, subdivision</statute_ref> 11a. <br/>
<a id="pl.24.3"></a><var>24.3</var>(c) An individual who terminates public service covered by the Public Employees <br/>
<a id="pl.24.4"></a><var>24.4</var>Retirement Association general employees retirement plan, the Public Employees <br/>
<a id="pl.24.5"></a><var>24.5</var>Retirement Association police and fire retirement plan, or the public employees local <br/>
<a id="pl.24.6"></a><var>24.6</var>government corrections correctional service retirement plan, and who is employed by a <br/>
<a id="pl.24.7"></a><var>24.7</var>different employer and who becomes an active member covered by one of the other two <br/>
<a id="pl.24.8"></a><var>24.8</var>plans, may receive a refund of employee contributions plus six percent annual compound <br/>
<a id="pl.24.9"></a><var>24.9</var>interest compounded annually from the plan from which the member terminated service at <br/>
<a id="pl.24.10"></a><var>24.10</var>the applicable rate specified in subdivision 2.<br/>
<a id="pl.24.11"></a><var>24.11</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.1.32.0"></a><a id="pl.24.12"></a><var>24.12</var>    Sec. 32. Minnesota Statutes 2008, section 353.34, subdivision 2, is amended to read:<br/>
<a id="pl.24.13"></a><var>24.13</var>    Subd. 2. <b>Refund with interest.</b> (a) Except as provided in subdivision 1, any person <br/>
<a id="pl.24.14"></a><var>24.14</var>who ceases to be a public employee shall is entitled to receive a refund in an amount equal <br/>
<a id="pl.24.15"></a><var>24.15</var>to accumulated deductions with annual compound interest to the first day of the month <br/>
<a id="pl.24.16"></a><var>24.16</var>in which the refund is processed at the rate of six percent compounded annually based <br/>
<a id="pl.24.17"></a><var>24.17</var>on fiscal year balances.<br/>
<a id="pl.24.18"></a><var>24.18</var>(b) For a person who ceases to be a public employee before July 1, 2011, the refund <br/>
<a id="pl.24.19"></a><var>24.19</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.24.20"></a><var>24.20</var>June 30, 2011. For a person who ceases to be a public employee after July 1, 2011, the <br/>
<a id="pl.24.21"></a><var>24.21</var>refund interest is at the rate of four percent.<br/>
<a id="pl.24.22"></a><var>24.22</var>(c) If a person repays a refund and subsequently applies for another refund, the <br/>
<a id="pl.24.23"></a><var>24.23</var>repayment amount, including interest, is added to the fiscal year balance in which the <br/>
<a id="pl.24.24"></a><var>24.24</var>repayment was made.<br/>
<a id="pl.24.25"></a><var>24.25</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.1.33.0"></a><a id="pl.24.26"></a><var>24.26</var>    Sec. 33. Minnesota Statutes 2008, section 353.34, subdivision 3, is amended to read:<br/>
<a id="pl.24.27"></a><var>24.27</var>    Subd. 3. <b>Deferred annuity; eligibility; computation.</b> (a) A member with at least <br/>
<a id="pl.24.28"></a><var>24.28</var>three years of allowable service who is vested under section 353.01, subdivision 47, when <br/>
<a id="pl.24.29"></a><var>24.29</var>termination of public service or termination of membership occurs has the option of <br/>
<a id="pl.24.30"></a><var>24.30</var>leaving the accumulated deductions in the fund and being entitled to a deferred retirement <br/>
<a id="pl.24.31"></a><var>24.31</var>annuity commencing at normal retirement age or to a deferred early retirement annuity <br/>
<a id="pl.24.32"></a><var>24.32</var>under section 
         <statute_ref>353.30, subdivision </statute_ref>1a, 1b, 1c, or 5.<br/>
<a id="pl.25.1"></a><var>25.1</var>(b) The deferred annuity must be computed under section 
         <statute_ref>353.29, subdivision 3</statute_ref>, on <br/>
<a id="pl.25.2"></a><var>25.2</var>the basis of the law in effect on the date of termination of public service or termination of <br/>
<a id="pl.25.3"></a><var>25.3</var>membership, whichever is earlier, and must be augmented as provided in section 
         <statute_ref>353.71, <br/>
<a id="pl.25.4"></a><var>25.4</var>subdivision 2
         </statute_ref>.<br/>
<a id="pl.25.5"></a><var>25.5</var>(c) A former member qualified to apply for a deferred retirement annuity may <br/>
<a id="pl.25.6"></a><var>25.6</var>revoke this option at any time before the commencement of deferred annuity payments <br/>
<a id="pl.25.7"></a><var>25.7</var>by making application for a refund. The person is entitled to a refund of accumulated <br/>
<a id="pl.25.8"></a><var>25.8</var>member contributions within 30 days following date of receipt of the application by the <br/>
<a id="pl.25.9"></a><var>25.9</var>executive director. <br/>
<a id="pl.25.10"></a><var>25.10</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.1.34.0"></a><a id="pl.25.11"></a><var>25.11</var>    Sec. 34. Minnesota Statutes 2009 Supplement, section 353.65, subdivision 2, is <br/>
<a id="pl.25.12"></a><var>25.12</var>amended to read:<br/>
<a id="pl.25.13"></a><var>25.13</var>    Subd. 2. <b>Employee contribution.</b>  The employee contribution is 9.4 percent of the <br/>
<a id="pl.25.14"></a><var>25.14</var>salary of the member in calendar year 2010 and is 9.6 percent of the salary of the member <br/>
<a id="pl.25.15"></a><var>25.15</var>in each calendar year after 2010. This contribution must be made by deduction from <br/>
<a id="pl.25.16"></a><var>25.16</var>salary in the manner provided in subdivision 4. Where any portion of a member's salary <br/>
<a id="pl.25.17"></a><var>25.17</var>is paid from other than public funds, the member's employee contribution is based on <br/>
<a id="pl.25.18"></a><var>25.18</var>the total salary received from all sources.<br/>
<a id="pl.25.19"></a><var>25.19</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.1.35.0"></a><a id="pl.25.20"></a><var>25.20</var>    Sec. 35. Minnesota Statutes 2009 Supplement, section 353.65, subdivision 3, is <br/>
<a id="pl.25.21"></a><var>25.21</var>amended to read:<br/>
<a id="pl.25.22"></a><var>25.22</var>    Subd. 3. <b>Employer contribution.</b>  The employer contribution is 14.1 percent of the <br/>
<a id="pl.25.23"></a><var>25.23</var>salary of the member in calendar year 2010 and is 14.4 percent of the salary of the member <br/>
<a id="pl.25.24"></a><var>25.24</var>in each calendar year after 2010. This contribution must be made from funds available to <br/>
<a id="pl.25.25"></a><var>25.25</var>the employing subdivision by the means and in the manner provided in section 
         <statute_ref>353.28</statute_ref>.<br/>
<a id="pl.25.26"></a><var>25.26</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.1.36.0"></a><a id="pl.25.27"></a><var>25.27</var>    Sec. 36. Minnesota Statutes 2008, section 353.651, subdivision 1, is amended to read:<br/>
<a id="pl.25.28"></a><var>25.28</var>    Subdivision 1. <b>Age and allowable service requirements.</b> Upon separation from <br/>
<a id="pl.25.29"></a><var>25.29</var>public service, any police officer or firefighter member who has attained the age of at <br/>
<a id="pl.25.30"></a><var>25.30</var>least 55 years and who received credit for not less than three years of allowable service <br/>
<a id="pl.25.31"></a><var>25.31</var>is vested under section 353.01, subdivision 47, is entitled upon application to a retirement <br/>
<a id="pl.25.32"></a><var>25.32</var>annuity. Such retirement annuity is, known as the "normal" retirement annuity.<br/>
<a id="pl.26.1"></a><var>26.1</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.1.37.0"></a><a id="pl.26.2"></a><var>26.2</var>    Sec. 37. Minnesota Statutes 2008, section 353.651, subdivision 4, is amended to read:<br/>
<a id="pl.26.3"></a><var>26.3</var>    Subd. 4. <b>Early retirement.</b> (a) A person who becomes a police and fire plan <br/>
<a id="pl.26.4"></a><var>26.4</var>member after June 30, 2007, or a former member who is reinstated as a member of the <br/>
<a id="pl.26.5"></a><var>26.5</var>plan after that date, who is at least 50 years of age with at least three years of allowable <br/>
<a id="pl.26.6"></a><var>26.6</var>service and who is vested under section 353.01, subdivision 47, upon the termination of <br/>
<a id="pl.26.7"></a><var>26.7</var>public service is entitled upon application to a retirement annuity equal to the normal <br/>
<a id="pl.26.8"></a><var>26.8</var>annuity calculated under subdivision 3, reduced by two-tenths of one percent for each <br/>
<a id="pl.26.9"></a><var>26.9</var>month that the member is under age 55 at the time of retirement.<br/>
<a id="pl.26.10"></a><var>26.10</var>    (b) Upon the termination of public service, any police and fire plan member not <br/>
<a id="pl.26.11"></a><var>26.11</var>specified in paragraph (a), upon attaining at least 50 years of age with at least three years <br/>
<a id="pl.26.12"></a><var>26.12</var>of allowable service is entitled upon application to a retirement annuity equal to the <br/>
<a id="pl.26.13"></a><var>26.13</var>normal annuity calculated under subdivision 3, reduced by one-tenth of one percent for <br/>
<a id="pl.26.14"></a><var>26.14</var>each month that the member is under age 55 at the time of retirement.<br/>
<a id="pl.26.15"></a><var>26.15</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.1.38.0"></a><a id="pl.26.16"></a><var>26.16</var>    Sec. 38. Minnesota Statutes 2008, section 353.657, subdivision 1, is amended to read:<br/>
<a id="pl.26.17"></a><var>26.17</var>    Subdivision 1. <b>Generally.</b> (a) In the event that a member of the police and fire <br/>
<a id="pl.26.18"></a><var>26.18</var>fund dies from any cause before retirement or before becoming disabled and receiving <br/>
<a id="pl.26.19"></a><var>26.19</var>disability benefits, the association shall grant survivor benefits to a surviving spouse, as <br/>
<a id="pl.26.20"></a><var>26.20</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.26.21"></a><var>26.21</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.26.22"></a><var>26.22</var>member must have accrued at least three years of credited service be vested under section <br/>
<a id="pl.26.23"></a><var>26.23</var>353.01, subdivision 47.<br/>
<a id="pl.26.24"></a><var>26.24</var>    (b) Notwithstanding the definition of surviving spouse, a former spouse of the <br/>
<a id="pl.26.25"></a><var>26.25</var>member, if any, is entitled to a portion of the monthly surviving spouse benefit if <br/>
<a id="pl.26.26"></a><var>26.26</var>stipulated under the terms of a marriage dissolution decree filed with the association. If <br/>
<a id="pl.26.27"></a><var>26.27</var>there is no surviving spouse or child or children, a former spouse may be entitled to <br/>
<a id="pl.26.28"></a><var>26.28</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.26.29"></a><var>26.29</var>marriage dissolution decree but not a monthly surviving spouse benefit despite the terms <br/>
<a id="pl.26.30"></a><var>26.30</var>of a marriage dissolution decree filed with the association.<br/>
<a id="pl.26.31"></a><var>26.31</var>    (c) The spouse and child or children are entitled to monthly benefits as provided in <br/>
<a id="pl.26.32"></a><var>26.32</var>subdivisions 2 to 4.<br/>
<a id="pl.26.33"></a><var>26.33</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.1.39.0"></a><a id="pl.27.1"></a><var>27.1</var>    Sec. 39. Minnesota Statutes 2008, section 353.657, subdivision 2a, is amended to read:<br/>
<a id="pl.27.2"></a><var>27.2</var>    Subd. 2a. <b>Death while eligible survivor benefit.</b> (a) If a member or former member <br/>
<a id="pl.27.3"></a><var>27.3</var>who has attained the age of at least 50 years and has credit for not less than three years <br/>
<a id="pl.27.4"></a><var>27.4</var>allowable service either who is vested under section 353.01, subdivision 47, or who has <br/>
<a id="pl.27.5"></a><var>27.5</var>credit for at least 30 years of allowable service, regardless of age attained, dies before <br/>
<a id="pl.27.6"></a><var>27.6</var>the annuity or disability benefit becomes payable, notwithstanding any designation of <br/>
<a id="pl.27.7"></a><var>27.7</var>beneficiary to the contrary, the surviving spouse may elect to receive a death while <br/>
<a id="pl.27.8"></a><var>27.8</var>eligible survivor benefit.<br/>
<a id="pl.27.9"></a><var>27.9</var>    (b) Notwithstanding the definition of surviving spouse in section 
         <statute_ref>353.01, subdivision <br/>
<a id="pl.27.10"></a><var>27.10</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.27.11"></a><var>27.11</var>eligible survivor benefit if stipulated under the terms of a marriage dissolution decree <br/>
<a id="pl.27.12"></a><var>27.12</var>filed with the association. If there is no surviving spouse or child or children, a former <br/>
<a id="pl.27.13"></a><var>27.13</var>spouse may be entitled to a lump-sum refund payment under section 
         <statute_ref>353.32, subdivision <br/>
<a id="pl.27.14"></a><var>27.14</var>1
         </statute_ref>, if provided for in a marriage dissolution decree but not a death while eligible survivor <br/>
<a id="pl.27.15"></a><var>27.15</var>benefit despite the terms of a marriage dissolution decree filed with the association. <br/>
<a id="pl.27.16"></a><var>27.16</var>    (c) The benefit may be elected instead of a refund with interest under section 
         <statute_ref>353.32, <br/>
<a id="pl.27.17"></a><var>27.17</var>subdivision 1
         </statute_ref>, or surviving spouse benefits otherwise payable under subdivisions 1 and <br/>
<a id="pl.27.18"></a><var>27.18</var>2. The benefit must be an annuity equal to the 100 percent joint and survivor annuity <br/>
<a id="pl.27.19"></a><var>27.19</var>which the member could have qualified for on the date of death, computed as provided in <br/>
<a id="pl.27.20"></a><var>27.20</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.27.21"></a><var>27.21</var>    (d) The surviving spouse may apply for the annuity at any time after the date <br/>
<a id="pl.27.22"></a><var>27.22</var>on which the deceased employee would have attained the required age for retirement <br/>
<a id="pl.27.23"></a><var>27.23</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.27.24"></a><var>27.24</var>subdivision 2
         </statute_ref>, apply to a deferred annuity payable under this subdivision.<br/>
<a id="pl.27.25"></a><var>27.25</var>    (e) No payment accrues beyond the end of the month in which entitlement to <br/>
<a id="pl.27.26"></a><var>27.26</var>such annuity has terminated. An amount equal to the excess, if any, of the accumulated <br/>
<a id="pl.27.27"></a><var>27.27</var>contributions which were credited to the account of the deceased employee over and <br/>
<a id="pl.27.28"></a><var>27.28</var>above the total of the annuities paid and payable to the surviving spouse must be paid to <br/>
<a id="pl.27.29"></a><var>27.29</var>the deceased member's last designated beneficiary or, if none, to the legal representative of <br/>
<a id="pl.27.30"></a><var>27.30</var>the estate of such deceased member.<br/>
<a id="pl.27.31"></a><var>27.31</var>    (f) Any member may request in writing, with the signed consent of the spouse, that <br/>
<a id="pl.27.32"></a><var>27.32</var>this subdivision not apply and that payment be made only to the designated beneficiary, as <br/>
<a id="pl.27.33"></a><var>27.33</var>otherwise provided by this chapter.<br/>
<a id="pl.27.34"></a><var>27.34</var>    (g) For a member who is employed as a full-time firefighter by the Department of <br/>
<a id="pl.27.35"></a><var>27.35</var>Military Affairs of the state of Minnesota, allowable service as a full-time state Military <br/>
<a id="pl.28.1"></a><var>28.1</var>Affairs Department firefighter credited by the Minnesota State Retirement System may be <br/>
<a id="pl.28.2"></a><var>28.2</var>used in meeting the minimum allowable service requirement of this subdivision.<br/>
<a id="pl.28.3"></a><var>28.3</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.1.40.0"></a><a id="pl.28.4"></a><var>28.4</var>    Sec. 40. Minnesota Statutes 2008, section 353.71, subdivision 1, is amended to read:<br/>
<a id="pl.28.5"></a><var>28.5</var>    Subdivision 1. <b>Eligibility.</b> Any person who has been a member of a defined benefit <br/>
<a id="pl.28.6"></a><var>28.6</var>retirement plan administered by the Public Employees Retirement Association, or a <br/>
<a id="pl.28.7"></a><var>28.7</var>retirement plan administered by the Minnesota State Retirement System, or the Teachers <br/>
<a id="pl.28.8"></a><var>28.8</var>Retirement Association, or any other public retirement system in the state of Minnesota <br/>
<a id="pl.28.9"></a><var>28.9</var>having a like provision, except a fund retirement plan providing benefits for police officers <br/>
<a id="pl.28.10"></a><var>28.10</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.28.11"></a><var>28.11</var>qualified, to an annuity from each fund retirement plan if the total allowable service in all <br/>
<a id="pl.28.12"></a><var>28.12</var>funds retirement plans or in any two of these funds retirement plans totals three or more <br/>
<a id="pl.28.13"></a><var>28.13</var>years the number of years of allowable service required to receive a normal retirement <br/>
<a id="pl.28.14"></a><var>28.14</var>annuity for that retirement plan, provided that no portion of the allowable service upon <br/>
<a id="pl.28.15"></a><var>28.15</var>which the retirement annuity from one fund retirement plan is based is again used in the <br/>
<a id="pl.28.16"></a><var>28.16</var>computation for benefits from another fund retirement plan and provided further that the <br/>
<a id="pl.28.17"></a><var>28.17</var>person has not taken a refund from any one of these funds retirement plans since the <br/>
<a id="pl.28.18"></a><var>28.18</var>person's membership in that association or system last terminated. The annuity from <br/>
<a id="pl.28.19"></a><var>28.19</var>each fund shall must be determined by the appropriate provisions of the law except that <br/>
<a id="pl.28.20"></a><var>28.20</var>the requirement that a person must have at least three years a specific minimum period <br/>
<a id="pl.28.21"></a><var>28.21</var>of allowable service in the respective association or system shall does not apply for the <br/>
<a id="pl.28.22"></a><var>28.22</var>purposes of this section provided if the combined service in two or more of these funds <br/>
<a id="pl.28.23"></a><var>28.23</var>retirement plans equals three or more the number of years of allowable service required to <br/>
<a id="pl.28.24"></a><var>28.24</var>receive a normal retirement annuity for that retirement plan. <br/>
<a id="pl.28.25"></a><var>28.25</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.1.41.0"></a><a id="pl.28.26"></a><var>28.26</var>    Sec. 41. Minnesota Statutes 2008, section 353.71, subdivision 2, is amended to read:<br/>
<a id="pl.28.27"></a><var>28.27</var>    Subd. 2. <b>Deferred annuity computation; augmentation.</b> (a) The deferred annuity <br/>
<a id="pl.28.28"></a><var>28.28</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.28.29"></a><var>28.29</var>subdivision 4
         </statute_ref>, must be computed on the basis of allowable service prior to the termination <br/>
<a id="pl.28.30"></a><var>28.30</var>of public service and augmented as provided in this paragraph subdivision. The required <br/>
<a id="pl.28.31"></a><var>28.31</var>reserves applicable to a deferred annuity, or to any deferred segment of an annuity must <br/>
<a id="pl.28.32"></a><var>28.32</var>be determined as of the first day of the month following the month in which the former <br/>
<a id="pl.28.33"></a><var>28.33</var>member ceased to be a public employee, or July 1, 1971, whichever is later. These<br/>
<a id="pl.29.1"></a><var>29.1</var>(b) For a person who became a public employee before July 1, 2006, whose period <br/>
<a id="pl.29.2"></a><var>29.2</var>of deferral began after June 30, 1971, and who terminated public employment before <br/>
<a id="pl.29.3"></a><var>29.3</var>January 1, 2012, the required reserves of the deferred annuity must be augmented at <br/>
<a id="pl.29.4"></a><var>29.4</var>the following applicable rate of  or rates:<br/>
<a id="pl.29.5"></a><var>29.5</var>(1) five percent annually compounded annually annual compound interest until <br/>
<a id="pl.29.6"></a><var>29.6</var>January 1, 1981, and at the rate of;<br/>
<a id="pl.29.7"></a><var>29.7</var>(2)  three percent thereafter annual compound interest after January 1, 1981, or until <br/>
<a id="pl.29.8"></a><var>29.8</var>the earlier of December 31, 2011, or after the date of the termination of public service or <br/>
<a id="pl.29.9"></a><var>29.9</var>the termination of membership, whichever is later, until January 1 of the year following <br/>
<a id="pl.29.10"></a><var>29.10</var>the year in which the former member attains age 55 and;<br/>
<a id="pl.29.11"></a><var>29.11</var>(3) five percent annual compound interest from that date to the effective date of <br/>
<a id="pl.29.12"></a><var>29.12</var>retirement, the rate is five percent compounded annually if the employee became an <br/>
<a id="pl.29.13"></a><var>29.13</var>employee before July 1, 2006, and at 2.5 percent compounded annually if the employee <br/>
<a id="pl.29.14"></a><var>29.14</var>becomes an January 1 of the year following the year in which the former member attains <br/>
<a id="pl.29.15"></a><var>29.15</var>age 55, or until December 31, 2011, whichever is earlier; and<br/>
<a id="pl.29.16"></a><var>29.16</var>(4) one percent annual compound interest from January 1, 2012.<br/>
<a id="pl.29.17"></a><var>29.17</var>(c) For a person who became a public employee after June 30, 2006, and who <br/>
<a id="pl.29.18"></a><var>29.18</var>terminated public employment before January 1, 2012, the required reserves of the <br/>
<a id="pl.29.19"></a><var>29.19</var>deferred annuity must be augmented at 2.5 percent annual compound interest from the date <br/>
<a id="pl.29.20"></a><var>29.20</var>of termination of public service or termination of membership, whichever is earlier, until <br/>
<a id="pl.29.21"></a><var>29.21</var>December 31, 2011, and one percent annual compound interest after December 31, 2011.<br/>
<a id="pl.29.22"></a><var>29.22</var>(d) For a person who terminates public employment after December 31, 2011, the <br/>
<a id="pl.29.23"></a><var>29.23</var>required reserves of the deferred annuity must not be augmented.<br/>
<a id="pl.29.24"></a><var>29.24</var>(e) If a person has more than one period of uninterrupted service, the required <br/>
<a id="pl.29.25"></a><var>29.25</var>reserves related to each period must be augmented as specified in this paragraph. The sum <br/>
<a id="pl.29.26"></a><var>29.26</var>of the augmented required reserves is the present value of the annuity. Uninterrupted <br/>
<a id="pl.29.27"></a><var>29.27</var>service for the purpose of this subdivision means periods of covered employment during <br/>
<a id="pl.29.28"></a><var>29.28</var>which the employee has not been separated from public service for more than two years. <br/>
<a id="pl.29.29"></a><var>29.29</var>If a person repays a refund, the restored service must be considered as continuous with the <br/>
<a id="pl.29.30"></a><var>29.30</var>next period of service for which the employee has credit with this association. This section <br/>
<a id="pl.29.31"></a><var>29.31</var>must not reduce the annuity otherwise payable under this chapter. This paragraph applies <br/>
<a id="pl.29.32"></a><var>29.32</var>to individuals who become deferred annuitants on or after July 1, 1971. For a member <br/>
<a id="pl.29.33"></a><var>29.33</var>who became a deferred annuitant before July 1, 1971, the paragraph applies from July 1, <br/>
<a id="pl.29.34"></a><var>29.34</var>1971, if the former active member applies for an annuity after July 1, 1973. <br/>
<a id="pl.29.35"></a><var>29.35</var>(b) (f) The retirement annuity or disability benefit of, or the survivor benefit payable <br/>
<a id="pl.29.36"></a><var>29.36</var>on behalf of, a former member who terminated service before July 1, 1997, or the <br/>
<a id="pl.30.1"></a><var>30.1</var>survivor benefit payable on behalf of a basic or police and fire member who was receiving <br/>
<a id="pl.30.2"></a><var>30.2</var>disability benefits before July 1, 1997, which is first payable after June 30, 1997, must <br/>
<a id="pl.30.3"></a><var>30.3</var>be increased on an actuarial equivalent basis to reflect the change in the postretirement <br/>
<a id="pl.30.4"></a><var>30.4</var>interest rate actuarial assumption under section 
         <statute_ref>356.215, subdivision 8</statute_ref>, from five percent <br/>
<a id="pl.30.5"></a><var>30.5</var>to six percent under a calculation procedure and tables adopted by the board and approved <br/>
<a id="pl.30.6"></a><var>30.6</var>by the actuary retained under section 
         <statute_ref>356.214</statute_ref>. <br/>
<a id="pl.30.7"></a><var>30.7</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.1.42.0"></a><a id="pl.30.8"></a><var>30.8</var>    Sec. 42. Minnesota Statutes 2008, section 353E.04, subdivision 1, is amended to read:<br/>
<a id="pl.30.9"></a><var>30.9</var>    Subdivision 1. <b>Eligibility requirements.</b> After termination of public employment, <br/>
<a id="pl.30.10"></a><var>30.10</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.30.11"></a><var>30.11</var>and has credit for not less than three years of coverage who is vested under section <br/>
<a id="pl.30.12"></a><var>30.12</var>353.01, subdivision 47, in the local government correctional service plan is entitled, upon <br/>
<a id="pl.30.13"></a><var>30.13</var>application, to a normal retirement annuity. Instead of a normal retirement annuity, a <br/>
<a id="pl.30.14"></a><var>30.14</var>retiring employee may elect to receive the optional annuity provided in section 
         <statute_ref>353.30, <br/>
<a id="pl.30.15"></a><var>30.15</var>subdivision 3
         </statute_ref>.  <br/>
<a id="pl.30.16"></a><var>30.16</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.1.43.0"></a><a id="pl.30.17"></a><var>30.17</var>    Sec. 43. Minnesota Statutes 2008, section 353E.04, subdivision 4, is amended to read:<br/>
<a id="pl.30.18"></a><var>30.18</var>    Subd. 4. <b>Early retirement.</b> An employee covered under section 
         <statute_ref>353E.02</statute_ref> who has <br/>
<a id="pl.30.19"></a><var>30.19</var>attained the age of at least 50 years and has credit for not less than three years of coverage <br/>
<a id="pl.30.20"></a><var>30.20</var>who is vested under section 353.01, subdivision 47, in the local government correctional <br/>
<a id="pl.30.21"></a><var>30.21</var>service plan is entitled, upon application, to a reduced retirement annuity equal to the <br/>
<a id="pl.30.22"></a><var>30.22</var>annuity calculated under subdivision 3, reduced so that the reduced annuity is the actuarial <br/>
<a id="pl.30.23"></a><var>30.23</var>equivalent of the annuity that would be payable if the employee deferred receipt of the <br/>
<a id="pl.30.24"></a><var>30.24</var>annuity from the day the annuity begins to accrue until age 55.  <br/>
<a id="pl.30.25"></a><var>30.25</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.1.44.0"></a><a id="pl.30.26"></a><var>30.26</var>    Sec. 44. Minnesota Statutes 2008, section 353E.07, subdivision 1, is amended to read:<br/>
<a id="pl.30.27"></a><var>30.27</var>    Subdivision 1. <b>Member at least age 50.</b> If a member or former member of the local <br/>
<a id="pl.30.28"></a><var>30.28</var>government correctional service retirement plan who has attained the age of at least 50 <br/>
<a id="pl.30.29"></a><var>30.29</var>years and has credit for not less than three years of allowable service who is vested under <br/>
<a id="pl.30.30"></a><var>30.30</var>section 353.01, subdivision 47, dies before the annuity or disability benefit has become <br/>
<a id="pl.30.31"></a><var>30.31</var>payable, notwithstanding any designation of beneficiary to the contrary, the surviving <br/>
<a id="pl.30.32"></a><var>30.32</var>spouse may elect to receive, in lieu of a refund with interest provided in section 
         <statute_ref>353.32, <br/>
<a id="pl.31.1"></a><var>31.1</var>subdivision 1
         </statute_ref>, a surviving spouse annuity equal to the 100 percent joint and survivor <br/>
<a id="pl.31.2"></a><var>31.2</var>annuity for which the member could have qualified had the member terminated service <br/>
<a id="pl.31.3"></a><var>31.3</var>on the date of death. <br/>
<a id="pl.31.4"></a><var>31.4</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.1.45.0"></a><a id="pl.31.5"></a><var>31.5</var>    Sec. 45. Minnesota Statutes 2008, section 353E.07, subdivision 2, is amended to read:<br/>
<a id="pl.31.6"></a><var>31.6</var>    Subd. 2. <b>Member not yet age 50.</b> If the member was under age 50, dies, and had <br/>
<a id="pl.31.7"></a><var>31.7</var>credit for not less than three years of allowable service was vested under section 353.01, <br/>
<a id="pl.31.8"></a><var>31.8</var>subdivision 47, on the date of death but did not yet qualify for retirement, the surviving <br/>
<a id="pl.31.9"></a><var>31.9</var>spouse may elect to receive a 100 percent joint and survivor annuity based on the age <br/>
<a id="pl.31.10"></a><var>31.10</var>of the employee and the surviving spouse at the time of death. The annuity is payable <br/>
<a id="pl.31.11"></a><var>31.11</var>using the early retirement reduction under section 
         <statute_ref>353E.04, subdivision 4</statute_ref>, to age 50 and <br/>
<a id="pl.31.12"></a><var>31.12</var>one-half the early retirement reduction from age 50 to the age payment begins. Sections <br/>
<statute_ref><a id="pl.31.13"></a><var>31.13</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.31.14"></a><var>31.14</var>spouse benefit payable under this subdivision. <br/>
<a id="pl.31.15"></a><var>31.15</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.1.46.0"></a><a id="pl.31.16"></a><var>31.16</var>    Sec. 46. Minnesota Statutes 2008, section 353F.03, is amended to read:<br/>
<a id="pl.31.17"></a><var>31.17</var><b>353F.03 VESTING RULE FOR CERTAIN EMPLOYEES.</b><br/>
<a id="pl.31.18"></a><var>31.18</var>Notwithstanding any provision of chapter 353 to the contrary, a terminated medical <br/>
<a id="pl.31.19"></a><var>31.19</var>facility or other public employing unit employee is eligible to receive a retirement annuity <br/>
<a id="pl.31.20"></a><var>31.20</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.31.21"></a><var>31.21</var>year in which the privatization occurred, without regard to the requirement for three years <br/>
<a id="pl.31.22"></a><var>31.22</var>of allowable service specified in section 353.01, subdivision 47.  <br/>
<a id="pl.31.23"></a><var>31.23</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.1.47.0"></a><a id="pl.31.24"></a><var>31.24</var>    Sec. 47. Minnesota Statutes 2009 Supplement, section 354.42, subdivision 2, is <br/>
<a id="pl.31.25"></a><var>31.25</var>amended to read:<br/>
<a id="pl.31.26"></a><var>31.26</var>    Subd. 2. <b>Employee contribution.</b> (a) For a basic member, the employee <br/>
<a id="pl.31.27"></a><var>31.27</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.31.28"></a><var>31.28</var><br/>
</td>
<td></td>
<td>before July 1, 2011<br/>
</td>
<td>9.0 percent<br/>
</td>
</tr>
<tr>
<td><a id="pl.31.29"></a><var>31.29</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.31.30"></a><var>31.30</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.31.31"></a><var>31.31</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.31.32"></a><var>31.32</var><br/>
</td>
<td></td>
<td>after June 30, 2014<br/>
</td>
<td>11.0 percent<br/>
</td>
</tr>
</table><a id="pl.32.1"></a><var>32.1</var>(b) For a coordinated member, the employee contribution is 5.5 percent  the following <br/>
<a id="pl.32.2"></a><var>32.2</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.32.3"></a><var>32.3</var><br/>
</td>
<td></td>
<td>before July 1, 2011<br/>
</td>
<td>5.5 percent<br/>
</td>
</tr>
<tr>
<td><a id="pl.32.4"></a><var>32.4</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.32.5"></a><var>32.5</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.32.6"></a><var>32.6</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.32.7"></a><var>32.7</var><br/>
</td>
<td></td>
<td>after June 30, 2014<br/>
</td>
<td>7.5 percent<br/>
</td>
</tr>
</table><a id="pl.32.8"></a><var>32.8</var>(c) When an employee contribution rate changes for a fiscal year, the new <br/>
<a id="pl.32.9"></a><var>32.9</var>contribution rate is effective for the entire salary paid for each employer unit with the <br/>
<a id="pl.32.10"></a><var>32.10</var>first payroll cycle reported.<br/>
<a id="pl.32.11"></a><var>32.11</var>(d) After June 30, 2015, if a contribution rate revision is required under subdivisions <br/>
<a id="pl.32.12"></a><var>32.12</var>4a, 4b, and 4c, the employee contributions under paragraphs (a) and (b) must be adjusted <br/>
<a id="pl.32.13"></a><var>32.13</var>accordingly.<br/>
<a id="pl.32.14"></a><var>32.14</var>(b) (e) This contribution must be made by deduction from salary. Where any portion <br/>
<a id="pl.32.15"></a><var>32.15</var>of a member's salary is paid from other than public funds, the member's employee <br/>
<a id="pl.32.16"></a><var>32.16</var>contribution must be based on the entire salary received.<br/>
<a id="pl.32.17"></a><var>32.17</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.1.48.0"></a><a id="pl.32.18"></a><var>32.18</var>    Sec. 48. Minnesota Statutes 2008, section 354.42, subdivision 3, is amended to read:<br/>
<a id="pl.32.19"></a><var>32.19</var>    Subd. 3. <b>Employer.</b> (a) The regular employer contribution to the fund by Special <br/>
<a id="pl.32.20"></a><var>32.20</var>School District No. 1, Minneapolis, after July 1, 2006, and before July 1, 2007, is an <br/>
<a id="pl.32.21"></a><var>32.21</var>amount equal to 5.0 percent of the salary of each of its teachers who is a coordinated <br/>
<a id="pl.32.22"></a><var>32.22</var>member and 9.0 percent of the salary of each of its teachers who is a basic member. After <br/>
<a id="pl.32.23"></a><var>32.23</var>July 1, 2007, the regular employer contribution to the fund by Special School District No. <br/>
<a id="pl.32.24"></a><var>32.24</var>1, Minneapolis, is an amount equal to 5.5 percent the applicable following percentage of <br/>
<a id="pl.32.25"></a><var>32.25</var>salary of each coordinated member and 9.5 percent the applicable following percentage <br/>
<a id="pl.32.26"></a><var>32.26</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.32.27"></a><var>32.27</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.32.28"></a><var>32.28</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.32.29"></a><var>32.29</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.32.30"></a><var>32.30</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.32.31"></a><var>32.31</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.32.32"></a><var>32.32</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.32.33"></a><var>32.33</var> The additional employer contribution to the fund by Special School District No. 1, <br/>
<a id="pl.32.34"></a><var>32.34</var>Minneapolis, after July 1, 2006, is an amount equal to 3.64 percent of the salary of each <br/>
<a id="pl.32.35"></a><var>32.35</var>teacher who is a coordinated member or is a basic member.<br/>
<a id="pl.33.1"></a><var>33.1</var>(b) The employer contribution to the fund for every other employer is an amount <br/>
<a id="pl.33.2"></a><var>33.2</var>equal to 5.0 percent the applicable following percentage of the salary of each coordinated <br/>
<a id="pl.33.3"></a><var>33.3</var>member and 9.0 percent the applicable following percentage of the salary of each basic <br/>
<a id="pl.33.4"></a><var>33.4</var>member before July 1, 2007, and 5.5 percent of the salary of each coordinated member <br/>
<a id="pl.33.5"></a><var>33.5</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.33.6"></a><var>33.6</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.33.7"></a><var>33.7</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.33.8"></a><var>33.8</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.33.9"></a><var>33.9</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.33.10"></a><var>33.10</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.33.11"></a><var>33.11</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.33.12"></a><var>33.12</var>(c) When an employer contribution rate changes for a fiscal year, the new <br/>
<a id="pl.33.13"></a><var>33.13</var>contribution rate is effective for the entire salary paid for each employer unit with the <br/>
<a id="pl.33.14"></a><var>33.14</var>first payroll cycle reported.<br/>
<a id="pl.33.15"></a><var>33.15</var>(d) After June 30, 2015, if a contribution rate revision is made under subdivisions <br/>
<a id="pl.33.16"></a><var>33.16</var>4a, 4b, and 4c, the employer contributions under paragraphs (a) and (b) must be adjusted <br/>
<a id="pl.33.17"></a><var>33.17</var>accordingly.<br/>
<a id="pl.33.18"></a><var>33.18</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.1.49.0"></a><a id="pl.33.19"></a><var>33.19</var>    Sec. 49. Minnesota Statutes 2008, section 354.42, is amended by adding a subdivision <br/>
<a id="pl.33.20"></a><var>33.20</var>to read:<br/>
<a id="pl.33.21"></a><var>33.21</var>    Subd. 4a. <b>Determination.</b> (a) For purposes of this section, a contribution <br/>
<a id="pl.33.22"></a><var>33.22</var>sufficiency exists if the total of the employee contributions, the employer contributions, <br/>
<a id="pl.33.23"></a><var>33.23</var>and any additional employer contributions, if applicable, exceeds the total of the normal <br/>
<a id="pl.33.24"></a><var>33.24</var>cost, the administrative expenses, and the amortization contribution of the retirement plan <br/>
<a id="pl.33.25"></a><var>33.25</var>as reported in the most recent actuarial valuation of the retirement plan prepared by the <br/>
<a id="pl.33.26"></a><var>33.26</var>approved actuary retained under section 356.214 and prepared under section 356.215 <br/>
<a id="pl.33.27"></a><var>33.27</var>and the standards for actuarial work of the Legislative Commission on Pensions and <br/>
<a id="pl.33.28"></a><var>33.28</var>Retirement.<br/>
<a id="pl.33.29"></a><var>33.29</var>(b) For purposes of this section, a contribution deficiency exists if the total of <br/>
<a id="pl.33.30"></a><var>33.30</var>the employee contributions, the employer contributions, and any additional employer <br/>
<a id="pl.33.31"></a><var>33.31</var>contributions are less than the total of the normal cost, the administrative expenses, and <br/>
<a id="pl.33.32"></a><var>33.32</var>the amortization contribution of the retirement plan as reported in the most recent actuarial <br/>
<a id="pl.33.33"></a><var>33.33</var>valuation of the retirement plan prepared by the approved actuary retained under section <br/>
<a id="pl.33.34"></a><var>33.34</var>356.214 and prepared under section 356.215 and the standards for actuarial work of the <br/>
<a id="pl.33.35"></a><var>33.35</var>Legislative Commission on Pensions and Retirement.<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.1.50.0"></a><a id="pl.34.2"></a><var>34.2</var>    Sec. 50. Minnesota Statutes 2008, section 354.42, is amended by adding a subdivision <br/>
<a id="pl.34.3"></a><var>34.3</var>to read:<br/>
<a id="pl.34.4"></a><var>34.4</var>    Subd. 4b. <b>Contribution rate revision.</b> Notwithstanding the contribution rate <br/>
<a id="pl.34.5"></a><var>34.5</var>provisions under subdivisions 2 and 3, the employee and employer contribution rates <br/>
<a id="pl.34.6"></a><var>34.6</var>may be adjusted as follows:<br/>
<a id="pl.34.7"></a><var>34.7</var>(1) if, after June 30, 2015, the regular actuarial valuation of the plan under section <br/>
<a id="pl.34.8"></a><var>34.8</var>356.215 indicates that there is a contribution sufficiency under subdivision 4a equal to <br/>
<a id="pl.34.9"></a><var>34.9</var>or greater than one percent of covered payroll and the sufficiency has existed for at least <br/>
<a id="pl.34.10"></a><var>34.10</var>two consecutive years, the employee and employer contribution rates for the plan may <br/>
<a id="pl.34.11"></a><var>34.11</var>each be decreased to a level such that the sufficiency equals no more than one percent of <br/>
<a id="pl.34.12"></a><var>34.12</var>covered payroll based on the most recent actuarial valuation; or<br/>
<a id="pl.34.13"></a><var>34.13</var>(2) if, after June 30, 2015, the regular valuation of the plan under section 356.215 <br/>
<a id="pl.34.14"></a><var>34.14</var>indicates that there is a deficiency equal to or greater than 0.25 percent of covered payroll <br/>
<a id="pl.34.15"></a><var>34.15</var>and the deficiency has existed for at least two consecutive years, the employee and <br/>
<a id="pl.34.16"></a><var>34.16</var>employer contribution rates for the applicable plan may each be increased by:<br/>
<a id="pl.34.17"></a><var>34.17</var>(i) 0.25 percent if the deficiency is less than 2.00 percent of covered payroll;<br/>
<a id="pl.34.18"></a><var>34.18</var>(ii) 0.5 percent if the deficiency is equal to or greater than 2.00 percent of covered <br/>
<a id="pl.34.19"></a><var>34.19</var>payroll and less than or equal to four percent; and<br/>
<a id="pl.34.20"></a><var>34.20</var>(iii) 0.75 percent if the deficiency is greater than four percent.<br/>
<a id="pl.34.21"></a><var>34.21</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.1.51.0"></a><a id="pl.34.22"></a><var>34.22</var>    Sec. 51. Minnesota Statutes 2008, section 354.42, is amended by adding a subdivision <br/>
<a id="pl.34.23"></a><var>34.23</var>to read:<br/>
<a id="pl.34.24"></a><var>34.24</var>    Subd. 4c. <b>Contribution sufficiency measures.</b> (a) A contribution sufficiency of up <br/>
<a id="pl.34.25"></a><var>34.25</var>to one percent of covered payroll must be held in reserve to be used to offset any future <br/>
<a id="pl.34.26"></a><var>34.26</var>actuarially required contributions that are more than the total combined employee and <br/>
<a id="pl.34.27"></a><var>34.27</var>employer contributions being collected.<br/>
<a id="pl.34.28"></a><var>34.28</var>(b) Before any reduction in contributions to eliminate a sufficiency in excess of one <br/>
<a id="pl.34.29"></a><var>34.29</var>percent of covered pay may be recommended, the executive director must review any <br/>
<a id="pl.34.30"></a><var>34.30</var>need for a change in actuarial assumptions, as recommended by the actuary retained <br/>
<a id="pl.34.31"></a><var>34.31</var>under section 356.214 in the most recent experience study of the retirement plan, that <br/>
<a id="pl.34.32"></a><var>34.32</var>may result in an increase in the actuarially required contribution and must report to the <br/>
<a id="pl.34.33"></a><var>34.33</var>Legislative Commission on Pensions and Retirement any recommendation by the board <br/>
<a id="pl.34.34"></a><var>34.34</var>to use the sufficiency exceeding one percent of covered payroll to offset the impact of <br/>
<a id="pl.35.1"></a><var>35.1</var>an actuarial assumption change recommended by the actuary retained under section <br/>
<a id="pl.35.2"></a><var>35.2</var>356.214, subdivision 1, and reviewed by the actuary retained by the commission under <br/>
<a id="pl.35.3"></a><var>35.3</var>section 356.214, subdivision 4.<br/>
<a id="pl.35.4"></a><var>35.4</var>(c) A contribution sufficiency in excess of one percent of covered pay must not be <br/>
<a id="pl.35.5"></a><var>35.5</var>used to increase benefits, and a benefit increase must not be proposed that would initiate <br/>
<a id="pl.35.6"></a><var>35.6</var>an automatic adjustment under this section to increase contributions. A proposed benefit <br/>
<a id="pl.35.7"></a><var>35.7</var>improvement must include a recommendation, prepared by the actuary retained under <br/>
<a id="pl.35.8"></a><var>35.8</var>section 356.214, subdivision 1, and reviewed by the actuary retained by the Legislative <br/>
<a id="pl.35.9"></a><var>35.9</var>Commission on Pensions and Retirement, as provided under section 356.214, subdivision <br/>
<a id="pl.35.10"></a><var>35.10</var>4, on the manner in which the benefit modification is to be funded.<br/>
<a id="pl.35.11"></a><var>35.11</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.1.52.0"></a><a id="pl.35.12"></a><var>35.12</var>    Sec. 52. Minnesota Statutes 2008, section 354.42, is amended by adding a subdivision <br/>
<a id="pl.35.13"></a><var>35.13</var>to read:<br/>
<a id="pl.35.14"></a><var>35.14</var>    Subd. 4d. <b>Reporting; commission review.</b> A contribution rate increase or decrease <br/>
<a id="pl.35.15"></a><var>35.15</var>under subdivision 4b, as determined by the executive director of the Teachers Retirement <br/>
<a id="pl.35.16"></a><var>35.16</var>Association, must be reported to the chair and the executive director of the Legislative <br/>
<a id="pl.35.17"></a><var>35.17</var>Commission on Pensions and Retirement on or before the next February 1 and, if the <br/>
<a id="pl.35.18"></a><var>35.18</var>Legislative Commission on Pensions and Retirement does not recommend against the rate <br/>
<a id="pl.35.19"></a><var>35.19</var>change or does not recommend a modification in the rate change, is effective on the next <br/>
<a id="pl.35.20"></a><var>35.20</var>July 1 following the determination by the executive director that a contribution deficiency <br/>
<a id="pl.35.21"></a><var>35.21</var>or sufficiency exists based on the most recent actuarial valuation under section 356.215.<br/>
<a id="pl.35.22"></a><var>35.22</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.1.53.0"></a><a id="pl.35.23"></a><var>35.23</var>    Sec. 53. Minnesota Statutes 2009 Supplement, section 354.47, subdivision 1, is <br/>
<a id="pl.35.24"></a><var>35.24</var>amended to read:<br/>
<a id="pl.35.25"></a><var>35.25</var>    Subdivision 1. <b>Death before retirement.</b> (a) If a member dies before retirement <br/>
<a id="pl.35.26"></a><var>35.26</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.35.27"></a><var>35.27</var>reversionary annuity, nor a benefit under section 
         <statute_ref>354.46, subdivision 1</statute_ref>, is payable to the <br/>
<a id="pl.35.28"></a><var>35.28</var>survivors if the member was a basic member, then the surviving spouse, or if there is no <br/>
<a id="pl.35.29"></a><var>35.29</var>surviving spouse, the designated beneficiary is entitled to an amount equal to the member's <br/>
<a id="pl.35.30"></a><var>35.30</var>accumulated deductions with interest credited to the account of the member to the date of <br/>
<a id="pl.35.31"></a><var>35.31</var>death of the member. If the designated beneficiary is a minor, interest must be credited to <br/>
<a id="pl.35.32"></a><var>35.32</var>the date the beneficiary reaches legal age, or the date of receipt, whichever is earlier. <br/>
<a id="pl.36.1"></a><var>36.1</var>(b) If a member dies before retirement and is covered under section 
         <statute_ref>354.44, <br/>
<a id="pl.36.2"></a><var>36.2</var>subdivision 6
         </statute_ref>, and neither an optional annuity, nor reversionary annuity, nor the benefit <br/>
<a id="pl.36.3"></a><var>36.3</var>described in section 
         <statute_ref>354.46, subdivision 1</statute_ref>, is payable to the survivors if the member <br/>
<a id="pl.36.4"></a><var>36.4</var>was a basic member, then the surviving spouse, or if there is no surviving spouse, then <br/>
<a id="pl.36.5"></a><var>36.5</var>the designated beneficiary is entitled to an amount equal to the member's accumulated <br/>
<a id="pl.36.6"></a><var>36.6</var>deductions credited to the account of the member as of June 30, 1957, and from July 1, <br/>
<a id="pl.36.7"></a><var>36.7</var>1957, to the date of death of the member, the member's accumulated deductions plus six <br/>
<a id="pl.36.8"></a><var>36.8</var>percent interest compounded annually. a refund equal to the accumulated deductions <br/>
<a id="pl.36.9"></a><var>36.9</var>credited to the member's account plus interest compounded annually until the member's <br/>
<a id="pl.36.10"></a><var>36.10</var>date of death using the following interest rates:<br/>
<a id="pl.36.11"></a><var>36.11</var>(1) before July 1, 1957, no interest accrues;<br/>
<a id="pl.36.12"></a><var>36.12</var>(2) July 1, 1957, to June 30, 2011, six percent; and<br/>
<a id="pl.36.13"></a><var>36.13</var>(3) after June 30, 2011, four percent.<br/>
<a id="pl.36.14"></a><var>36.14</var>(c) If the designated beneficiary under paragraph (b) is a minor, any interest credited <br/>
<a id="pl.36.15"></a><var>36.15</var>under that paragraph must be credited to the date the beneficiary reaches legal age, or <br/>
<a id="pl.36.16"></a><var>36.16</var>the date of receipt, whichever is earlier.<br/>
<a id="pl.36.17"></a><var>36.17</var>(d) The amount of any refund payable under this subdivision must be reduced by <br/>
<a id="pl.36.18"></a><var>36.18</var>any permanent disability payment under section 
         <statute_ref>354.48</statute_ref> received by the member.<br/>
<a id="pl.36.19"></a><var>36.19</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.1.54.0"></a><a id="pl.36.20"></a><var>36.20</var>    Sec. 54. Minnesota Statutes 2009 Supplement, section 354.49, subdivision 2, is <br/>
<a id="pl.36.21"></a><var>36.21</var>amended to read:<br/>
<a id="pl.36.22"></a><var>36.22</var>    Subd. 2. <b>Calculation.</b> (a) Except as provided in section 
         <statute_ref>354.44, subdivision 1</statute_ref>, <br/>
<a id="pl.36.23"></a><var>36.23</var>any person who ceases to be a member by reason of termination of teaching service, is <br/>
<a id="pl.36.24"></a><var>36.24</var>entitled to receive a refund in an amount equal to the accumulated deductions credited <br/>
<a id="pl.36.25"></a><var>36.25</var>to the account as of June 30, 1957, and after July 1, 1957, the accumulated deductions <br/>
<a id="pl.36.26"></a><var>36.26</var>with interest at the rate of six percent per annum compounded annually. plus interest <br/>
<a id="pl.36.27"></a><var>36.27</var>compounded annually using the following interest rates:<br/>
<a id="pl.36.28"></a><var>36.28</var>(1) before July 1, 1957, no interest accrues;<br/>
<a id="pl.36.29"></a><var>36.29</var>(2) July 1, 1957, to June 30, 2011, six percent; and<br/>
<a id="pl.36.30"></a><var>36.30</var>(3) after June 30, 2011, four percent.<br/>
<a id="pl.36.31"></a><var>36.31</var>For the purpose of this subdivision, interest must be computed on fiscal year end <br/>
<a id="pl.36.32"></a><var>36.32</var>balances to the first day of the month in which the refund is issued. <br/>
<a id="pl.36.33"></a><var>36.33</var>(b) If the person has received permanent disability payments under section 
         <statute_ref>354.48</statute_ref>, <br/>
<a id="pl.36.34"></a><var>36.34</var>the refund amount must be reduced by the amount of those payments.<br/>
<a id="pl.37.1"></a><var>37.1</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.1.55.0"></a><a id="pl.37.2"></a><var>37.2</var>    Sec. 55. Minnesota Statutes 2009 Supplement, section 354.55, subdivision 11, is <br/>
<a id="pl.37.3"></a><var>37.3</var>amended to read:<br/>
<a id="pl.37.4"></a><var>37.4</var>    Subd. 11. <b>Deferred annuity; augmentation.</b> (a) Any person covered under section <br/>
<statute_ref><a id="pl.37.5"></a><var>37.5</var>354.44, subdivision 6
         </statute_ref>, who ceases to render teaching service, may leave the person's <br/>
<a id="pl.37.6"></a><var>37.6</var>accumulated deductions in the fund for the purpose of receiving a deferred annuity <br/>
<a id="pl.37.7"></a><var>37.7</var>at retirement. <br/>
<a id="pl.37.8"></a><var>37.8</var>(b) The amount of the deferred retirement annuity is determined by section 
         <statute_ref>354.44, <br/>
<a id="pl.37.9"></a><var>37.9</var>subdivision 6
         </statute_ref>, and augmented as provided in this subdivision. The required reserves for <br/>
<a id="pl.37.10"></a><var>37.10</var>the annuity which had accrued when the member ceased to render teaching service must <br/>
<a id="pl.37.11"></a><var>37.11</var>be augmented, as further specified in this subdivision, by the applicable interest rate <br/>
<a id="pl.37.12"></a><var>37.12</var>compounded annually from the first day of the month following the month during which <br/>
<a id="pl.37.13"></a><var>37.13</var>the member ceased to render teaching service to the effective date of retirement.<br/>
<a id="pl.37.14"></a><var>37.14</var>(c) No augmentation is not creditable if the deferral period is less than three months <br/>
<a id="pl.37.15"></a><var>37.15</var>or if deferral commenced before July 1, 1971. <br/>
<a id="pl.37.16"></a><var>37.16</var>(d) For persons who became covered employees before July 1, 2006, with a deferral <br/>
<a id="pl.37.17"></a><var>37.17</var>period commencing after June 30, 1971, the annuity must be augmented using as follows:<br/>
<a id="pl.37.18"></a><var>37.18</var>(1) five percent interest compounded annually until January 1, 1981, and;<br/>
<a id="pl.37.19"></a><var>37.19</var>(2) three percent interest compounded annually thereafter from January 1, 1981, until <br/>
<a id="pl.37.20"></a><var>37.20</var>January 1 of the year following the year in which the deferred annuitant attains age 55.;<br/>
<a id="pl.37.21"></a><var>37.21</var> From that date (3) five percent interest compounded annually from the date <br/>
<a id="pl.37.22"></a><var>37.22</var>established in clause (2) to the effective date of retirement, the rate is five percent <br/>
<a id="pl.37.23"></a><var>37.23</var>compounded annually. or until June 30, 2012, whichever is earlier; and<br/>
<a id="pl.37.24"></a><var>37.24</var>(4) two percent interest compounded annually after June 30, 2012.<br/>
<a id="pl.37.25"></a><var>37.25</var>(e) For persons who become covered employees after June 30, 2006, the interest <br/>
<a id="pl.37.26"></a><var>37.26</var>rate used to augment the deferred annuity is 2.5 percent interest compounded annually <br/>
<a id="pl.37.27"></a><var>37.27</var>until June 30, 2012, or until the effective date of retirement, whichever is earlier, and two <br/>
<a id="pl.37.28"></a><var>37.28</var>percent interest compounded annually after June 30, 2012.<br/>
<a id="pl.37.29"></a><var>37.29</var>(f) If a person has more than one period of uninterrupted service, a separate average <br/>
<a id="pl.37.30"></a><var>37.30</var>salary determined under section 
         <statute_ref>354.44, subdivision 6</statute_ref>, must be used for each period <br/>
<a id="pl.37.31"></a><var>37.31</var>and the required reserves related to each period must be augmented as specified in this <br/>
<a id="pl.37.32"></a><var>37.32</var>subdivision. The sum of the augmented required reserves is the present value of the <br/>
<a id="pl.37.33"></a><var>37.33</var>annuity. For the purposes of this subdivision, "period of uninterrupted service" means a <br/>
<a id="pl.37.34"></a><var>37.34</var>period of covered teaching service during which the member has not been separated from <br/>
<a id="pl.37.35"></a><var>37.35</var>active service for more than one fiscal year.<br/>
<a id="pl.38.1"></a><var>38.1</var>(g) If a person repays a refund, the service restored by the repayment must be <br/>
<a id="pl.38.2"></a><var>38.2</var>considered as continuous with the next period of service for which the person has <br/>
<a id="pl.38.3"></a><var>38.3</var>allowable service credit in the Teachers Retirement Association.<br/>
<a id="pl.38.4"></a><var>38.4</var>(h) If a person does not render teaching service in any one fiscal year or more <br/>
<a id="pl.38.5"></a><var>38.5</var>consecutive fiscal years and then resumes teaching service, the formula percentages used <br/>
<a id="pl.38.6"></a><var>38.6</var>from the date of the resumption of teaching service must be those applicable to new <br/>
<a id="pl.38.7"></a><var>38.7</var>members.<br/>
<a id="pl.38.8"></a><var>38.8</var>(i) The mortality table and interest rate actuarial assumption used to compute the <br/>
<a id="pl.38.9"></a><var>38.9</var>annuity must be the applicable mortality table established by the board under section <br/>
<statute_ref><a id="pl.38.10"></a><var>38.10</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.38.11"></a><var>38.11</var>effect when the member retires. <br/>
<a id="pl.38.12"></a><var>38.12</var>(j) In no case may the annuity payable under this subdivision be less than the amount <br/>
<a id="pl.38.13"></a><var>38.13</var>of annuity payable under section 
         <statute_ref>354.44, subdivision 6</statute_ref>. <br/>
<a id="pl.38.14"></a><var>38.14</var>(k) The requirements and provisions for retirement before normal retirement age <br/>
<a id="pl.38.15"></a><var>38.15</var>contained in section 
         <statute_ref>354.44, subdivision 6</statute_ref>, also apply to an employee fulfilling the <br/>
<a id="pl.38.16"></a><var>38.16</var>requirements with a combination of service as provided in section 
         <statute_ref>354.60</statute_ref>. <br/>
<a id="pl.38.17"></a><var>38.17</var>(l) The augmentation provided by this subdivision applies to the benefit provided <br/>
<a id="pl.38.18"></a><var>38.18</var>in section 
         <statute_ref>354.46, subdivision 2</statute_ref>. <br/>
<a id="pl.38.19"></a><var>38.19</var>(m) The augmentation provided by this subdivision does not apply to any period <br/>
<a id="pl.38.20"></a><var>38.20</var>in which a person is on an approved leave of absence from an employer unit covered <br/>
<a id="pl.38.21"></a><var>38.21</var>by the provisions of this chapter.<br/>
<a id="pl.38.22"></a><var>38.22</var>(n) The retirement annuity or disability benefit of, or the survivor benefit payable on <br/>
<a id="pl.38.23"></a><var>38.23</var>behalf of, a former teacher who terminated service before July 1, 1997, which is not first <br/>
<a id="pl.38.24"></a><var>38.24</var>payable until after June 30, 1997, must be increased on an actuarial equivalent basis to <br/>
<a id="pl.38.25"></a><var>38.25</var>reflect the change in the postretirement interest rate actuarial assumption under section <br/>
<statute_ref><a id="pl.38.26"></a><var>38.26</var>356.215, subdivision 8
         </statute_ref>, from five percent to six percent under a calculation procedure and <br/>
<a id="pl.38.27"></a><var>38.27</var>tables adopted by the board as recommended by an approved actuary and approved by the <br/>
<a id="pl.38.28"></a><var>38.28</var>actuary retained under section 
         <statute_ref>356.214</statute_ref>.<br/>
<a id="pl.38.29"></a><var>38.29</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.1.56.0"></a><a id="pl.38.30"></a><var>38.30</var>    Sec. 56. Minnesota Statutes 2008, section 354A.12, subdivision 1, is amended to read:<br/>
<a id="pl.38.31"></a><var>38.31</var>    Subdivision 1.  <b>Employee contributions.</b> (a) The contribution required to be paid <br/>
<a id="pl.38.32"></a><var>38.32</var>by each member of a teachers retirement fund association shall not be less than is the <br/>
<a id="pl.38.33"></a><var>38.33</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.38.34"></a><var>38.34</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.38.35"></a><var>38.35</var><br/>
</td>
<td colspan="3">Duluth Teachers Retirement Fund Association<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.39.1"></a><var>39.1</var><br/>
</td>
<td></td>
<td colspan="2">old law and new law<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.39.2"></a><var>39.2</var><br/>
</td>
<td></td>
<td colspan="2">coordinated programs<br/>
</td>
<td>5.5 percent<br/>
</td>
</tr>
<tr>
<td><a id="pl.39.3"></a><var>39.3</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.39.4"></a><var>39.4</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.39.5"></a><var>39.5</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.39.6"></a><var>39.6</var><br/>
</td>
<td colspan="3">St. Paul Teachers Retirement Fund Association<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.39.7"></a><var>39.7</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.39.8"></a><var>39.8</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.39.9"></a><var>39.9</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.39.10"></a><var>39.10</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.39.11"></a><var>39.11</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.39.12"></a><var>39.12</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.39.13"></a><var>39.13</var>(b) Contributions shall be made by deduction from salary and must be remitted <br/>
<a id="pl.39.14"></a><var>39.14</var>directly to the respective teachers retirement fund association at least once each month. <br/>
<a id="pl.39.15"></a><var>39.15</var>(c) When an employee contribution rate changes for a fiscal year, the new <br/>
<a id="pl.39.16"></a><var>39.16</var>contribution rate is effective for the entire salary paid by the employer with the first <br/>
<a id="pl.39.17"></a><var>39.17</var>payroll cycle reported.<br/>
<a id="pl.39.18"></a><var>39.18</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2010.<br/>
<br/>
<a id="bill.1.57.0"></a><a id="pl.39.19"></a><var>39.19</var>    Sec. 57. Minnesota Statutes 2009 Supplement, section 354A.12, subdivision 2a, <br/>
<a id="pl.39.20"></a><var>39.20</var>is amended to read:<br/>
<a id="pl.39.21"></a><var>39.21</var>    Subd. 2a.  <b>Employer regular and additional contributions.</b> (a) The employing <br/>
<a id="pl.39.22"></a><var>39.22</var>units shall make the following employer contributions to teachers retirement fund <br/>
<a id="pl.39.23"></a><var>39.23</var>associations: <br/>
<a id="pl.39.24"></a><var>39.24</var>(1) for any coordinated member of one of the following teachers retirement fund <br/>
<a id="pl.39.25"></a><var>39.25</var>associations in a city of the first class, the employing unit shall make a regular employer <br/>
<a id="pl.39.26"></a><var>39.26</var>contribution to the respective retirement fund association in an amount equal to the <br/>
<a id="pl.39.27"></a><var>39.27</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.39.28"></a><var>39.28</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.39.29"></a><var>39.29</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.39.30"></a><var>39.30</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.39.31"></a><var>39.31</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.39.32"></a><var>39.32</var><br/>
<a id="pl.39.33"></a><var>39.33</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.39.34"></a><var>39.34</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.39.35"></a><var>39.35</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.39.36"></a><var>39.36</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.39.37"></a><var>39.37</var>(2) for any basic member of the St. Paul Teachers Retirement Fund Association, the <br/>
<a id="pl.39.38"></a><var>39.38</var>employing unit shall make a regular employer contribution to the respective retirement <br/>
<a id="pl.40.1"></a><var>40.1</var>fund in an amount equal to 8.00 percent of the salary of the basic member; according to <br/>
<a id="pl.40.2"></a><var>40.2</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.40.3"></a><var>40.3</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.40.4"></a><var>40.4</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.40.5"></a><var>40.5</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.40.6"></a><var>40.6</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.40.7"></a><var>40.7</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.40.8"></a><var>40.8</var>(3) for a basic member of the St. Paul Teachers Retirement Fund Association, the <br/>
<a id="pl.40.9"></a><var>40.9</var>employing unit shall make an additional employer contribution to the respective fund in <br/>
<a id="pl.40.10"></a><var>40.10</var>an amount equal to 3.64 percent of the salary of the basic member;<br/>
<a id="pl.40.11"></a><var>40.11</var>(4) for a coordinated member of a teachers retirement fund association in a city of <br/>
<a id="pl.40.12"></a><var>40.12</var>the first class the St. Paul Teachers Retirement Fund Association, the employing unit shall <br/>
<a id="pl.40.13"></a><var>40.13</var>make an additional employer contribution to the respective fund in an amount equal to the <br/>
<a id="pl.40.14"></a><var>40.14</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.40.15"></a><var>40.15</var><br/>
<a id="pl.40.16"></a><var>40.16</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.40.17"></a><var>40.17</var><br/>
<a id="pl.40.18"></a><var>40.18</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.40.19"></a><var>40.19</var>(b) The regular and additional employer contributions must be remitted directly to <br/>
<a id="pl.40.20"></a><var>40.20</var>the respective teachers retirement fund association at least once each month. Delinquent <br/>
<a id="pl.40.21"></a><var>40.21</var>amounts are payable with interest under the procedure in subdivision 1a.<br/>
<a id="pl.40.22"></a><var>40.22</var>(c) Payments of regular and additional employer contributions for school district <br/>
<a id="pl.40.23"></a><var>40.23</var>or technical college employees who are paid from normal operating funds must be made <br/>
<a id="pl.40.24"></a><var>40.24</var>from the appropriate fund of the district or technical college. <br/>
<a id="pl.40.25"></a><var>40.25</var>(d) When an employer contribution rate changes for a fiscal year, the new <br/>
<a id="pl.40.26"></a><var>40.26</var>contribution rate is effective for the entire salary paid by the employer with the first <br/>
<a id="pl.40.27"></a><var>40.27</var>payroll cycle reported.<br/>
<a id="pl.40.28"></a><var>40.28</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2010.<br/>
<br/>
<a id="bill.1.58.0"></a><a id="pl.40.29"></a><var>40.29</var>    Sec. 58. Minnesota Statutes 2008, section 354A.12, subdivision 3c, is amended to read:<br/>
<a id="pl.40.30"></a><var>40.30</var>    Subd. 3c. <b>Termination of supplemental contributions and direct matching </b><br/>
<a id="pl.40.31"></a><var>40.31</var><b>and state aid.</b> (a) The supplemental contributions payable to the Minneapolis Teachers <br/>
<a id="pl.40.32"></a><var>40.32</var>Retirement Fund Association by Special School District No. 1 and the city of Minneapolis <br/>
<a id="pl.40.33"></a><var>40.33</var>under section 
         <statute_ref>423A.02, subdivision 3</statute_ref>, must be paid to the Teachers Retirement <br/>
<a id="pl.40.34"></a><var>40.34</var>Association and must continue until the current assets of the fund equal or exceed the <br/>
<a id="pl.40.35"></a><var>40.35</var>actuarial accrued liability of the fund as determined in the most recent actuarial report <br/>
<a id="pl.40.36"></a><var>40.36</var>for the fund by the actuary retained under section 
         <statute_ref>356.214</statute_ref>, or 2037, whichever occurs <br/>
<a id="pl.41.1"></a><var>41.1</var>earlier. The supplemental contributions payable to the St. Paul Teachers Retirement Fund <br/>
<a id="pl.41.2"></a><var>41.2</var>Association by Independent School District No. 625 under section 
         <statute_ref>423A.02, subdivision <br/>
<a id="pl.41.3"></a><var>41.3</var>3
         </statute_ref>, or the direct state aid under subdivision 3a to the St. Paul Teachers Retirement Fund <br/>
<a id="pl.41.4"></a><var>41.4</var>Association terminate at the end of the fiscal year in which the accrued liability funding <br/>
<a id="pl.41.5"></a><var>41.5</var>ratio for that fund, as determined in the most recent actuarial report for that fund by the <br/>
<a id="pl.41.6"></a><var>41.6</var>actuary retained under section 
<statute_ref>356.214</statute_ref>, equals or exceeds the accrued liability funding <br/>
<a id="pl.41.7"></a><var>41.7</var>ratio for the Teachers Retirement Association, as determined in the most recent actuarial <br/>
<a id="pl.41.8"></a><var>41.8</var>report for the Teachers Retirement Association by the actuary retained under section <br/>
<a id="pl.41.9"></a><var>41.9</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.41.10"></a><var>41.10</var>accrued liability of the fund as determined in the most recent actuarial report for the fund <br/>
<a id="pl.41.11"></a><var>41.11</var>by the actuary retained under section 356.214 or until 2037, whichever occurs earlier. <br/>
<a id="pl.41.12"></a><var>41.12</var>    (b) If the St. Paul Teachers Retirement Fund Association is funded at an amount <br/>
<a id="pl.41.13"></a><var>41.13</var>equal to or greater than the funding ratio applicable to the Teachers Retirement <br/>
<a id="pl.41.14"></a><var>41.14</var>Association, then any future state aid under subdivision 3a is payable to the Teachers <br/>
<a id="pl.41.15"></a><var>41.15</var>Retirement Association.<br/>
<a id="pl.41.16"></a><var>41.16</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2010.<br/>
<br/>
<a id="bill.1.59.0"></a><a id="pl.41.17"></a><var>41.17</var>    Sec. 59. Minnesota Statutes 2008, section 354A.27, subdivision 5, is amended to read:<br/>
<a id="pl.41.18"></a><var>41.18</var>    Subd. 5. <b>Calculation</b><b> </b><b>Eligibility for and payment </b><b>of postretirement adjustments.</b><br/>
<a id="pl.41.19"></a><var>41.19</var>(a) Annually, after June 30, the board of trustees of the Duluth Teachers Retirement Fund <br/>
<a id="pl.41.20"></a><var>41.20</var>Association determines the amount of any postretirement adjustment using the procedures <br/>
<a id="pl.41.21"></a><var>41.21</var>in this subdivision and subdivision 6 or 7, whichever is applicable.<br/>
<a id="pl.41.22"></a><var>41.22</var>(b) Each person who has been receiving an annuity or benefit under the articles <br/>
<a id="pl.41.23"></a><var>41.23</var>of incorporation, bylaws, or under this section for at least 12 months as of the date of <br/>
<a id="pl.41.24"></a><var>41.24</var>the postretirement adjustment shall be eligible for a postretirement adjustment. The <br/>
<a id="pl.41.25"></a><var>41.25</var>postretirement adjustment shall be payable each January 1. The postretirement adjustment <br/>
<a id="pl.41.26"></a><var>41.26</var>shall be equal to two percent of a permanent percentage increase as specified under <br/>
<a id="pl.41.27"></a><var>41.27</var>subdivision 6 or 7, whichever is applicable, applied to the annuity or benefit to which the <br/>
<a id="pl.41.28"></a><var>41.28</var>person is entitled one month prior to the payment of the postretirement adjustment.<br/>
<a id="pl.41.29"></a><var>41.29</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2010.<br/>
<br/>
<a id="bill.1.60.0"></a><a id="pl.41.30"></a><var>41.30</var>    Sec. 60. Minnesota Statutes 2008, section 354A.27, subdivision 6, is amended to read:<br/>
<a id="pl.41.31"></a><var>41.31</var>    Subd. 6. <b>Additional increase</b><b> Calculation of postretirement adjustments; </b><br/>
<a id="pl.41.32"></a><var>41.32</var><b>transitional provision</b><b>.</b> (a) In addition to the postretirement increases granted under <br/>
<a id="pl.42.1"></a><var>42.1</var>subdivision 5, an additional percentage increase must be computed and paid under this <br/>
<a id="pl.42.2"></a><var>42.2</var>subdivision.<br/>
<a id="pl.42.3"></a><var>42.3</var>(b) The board of trustees shall determine the number of annuitants or benefit <br/>
<a id="pl.42.4"></a><var>42.4</var>recipients who have been receiving an annuity or benefit for at least 12 months as of the <br/>
<a id="pl.42.5"></a><var>42.5</var>current June 30. These recipients are entitled to receive the surplus investment earnings <br/>
<a id="pl.42.6"></a><var>42.6</var>additional postretirement increase.<br/>
<a id="pl.42.7"></a><var>42.7</var>(c) Annually, as of each June 30, the board shall determine the five-year annualized <br/>
<a id="pl.42.8"></a><var>42.8</var>rate of return attributable to the assets of the Duluth Teachers Retirement Fund Association <br/>
<a id="pl.42.9"></a><var>42.9</var>under the formula or formulas specified in section 
<statute_ref>11A.04</statute_ref>, clause (11). <br/>
<a id="pl.42.10"></a><var>42.10</var>(d) The board shall determine the amount of excess five-year annualized rate of <br/>
<a id="pl.42.11"></a><var>42.11</var>return over the preretirement interest assumption as specified in section 
<statute_ref>356.215</statute_ref>. <br/>
<a id="pl.42.12"></a><var>42.12</var>(e) The additional percentage increase must be determined by multiplying the <br/>
<a id="pl.42.13"></a><var>42.13</var>quantity one minus the rate of contribution deficiency, as specified in the most recent <br/>
<a id="pl.42.14"></a><var>42.14</var>actuarial report of the actuary retained under section 
<statute_ref>356.214</statute_ref>, times the rate of return <br/>
<a id="pl.42.15"></a><var>42.15</var>excess as determined in paragraph (d).<br/>
<a id="pl.42.16"></a><var>42.16</var>(f) The additional increase is payable to all eligible annuitants or benefit recipients <br/>
<a id="pl.42.17"></a><var>42.17</var>on the following January 1.<br/>
<a id="pl.42.18"></a><var>42.18</var>(a) For purposes of computing postretirement adjustments after the effective date <br/>
<a id="pl.42.19"></a><var>42.19</var>of this section for eligible benefit recipients of the Duluth Teachers Retirement Fund <br/>
<a id="pl.42.20"></a><var>42.20</var>Association, the funding ratio of the plan, as determined by dividing the market value of <br/>
<a id="pl.42.21"></a><var>42.21</var>assets by the actuarial accrued liability as reported in the most recent actuarial valuation <br/>
<a id="pl.42.22"></a><var>42.22</var>prepared under sections 356.214 and 356.215, determines the postretirement increase <br/>
<a id="pl.42.23"></a><var>42.23</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.42.24"></a><var>42.24</var><br/>
</td>
<td></td>
<td>Funding Ratio<br/>
</td>
<td>Postretirement Increase<br/>
</td>
</tr>
<tr>
<td><a id="pl.42.25"></a><var>42.25</var><br/>
</td>
<td></td>
<td>less than 80 percent<br/>
</td>
<td>0 percent<br/>
</td>
</tr>
<tr>
<td><a id="pl.42.26"></a><var>42.26</var><br/>
<a id="pl.42.27"></a><var>42.27</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.42.28"></a><var>42.28</var><br/>
</td>
<td></td>
<td>at least 90 percent<br/>
</td>
<td>2 percent<br/>
</td>
</tr>
</table><a id="pl.42.29"></a><var>42.29</var>(b) If the funding ratio of the plan based on actuarial value, rather than market value, <br/>
<a id="pl.42.30"></a><var>42.30</var>is at least 90 percent as reported in the most recent actuarial valuation prepared under <br/>
<a id="pl.42.31"></a><var>42.31</var>sections 356.214 and 356.215, this subdivision expires and subsequent postretirement <br/>
<a id="pl.42.32"></a><var>42.32</var>increases must be paid as specified under subdivision 7.<br/>
<a id="pl.42.33"></a><var>42.33</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2010.<br/>
<br/>
<a id="bill.1.61.0"></a><a id="pl.42.34"></a><var>42.34</var>    Sec. 61. Minnesota Statutes 2008, section 354A.27, is amended by adding a <br/>
<a id="pl.42.35"></a><var>42.35</var>subdivision to read:<br/>
<a id="pl.43.1"></a><var>43.1</var>    Subd. 7. <b>Calculation of postretirement adjustments.</b> (a) This subdivision applies <br/>
<a id="pl.43.2"></a><var>43.2</var>if subdivision 6 has expired.<br/>
<a id="pl.43.3"></a><var>43.3</var>(b) A percentage adjustment must be computed and paid under this subdivision to <br/>
<a id="pl.43.4"></a><var>43.4</var>eligible persons under subdivision 5. This adjustment is determined by reference to the <br/>
<a id="pl.43.5"></a><var>43.5</var>Consumer Price Index for urban wage earners and clerical workers all items index as <br/>
<a id="pl.43.6"></a><var>43.6</var>reported by the Bureau of Labor Statistics within the United States Department of Labor <br/>
<a id="pl.43.7"></a><var>43.7</var>each year as part of the determination of annual cost-of-living adjustments to recipients <br/>
<a id="pl.43.8"></a><var>43.8</var>of federal old-age, survivors, and disability insurance. For calculations of cost-of-living <br/>
<a id="pl.43.9"></a><var>43.9</var>adjustments under paragraph (c), the term "average third quarter Consumer Price Index <br/>
<a id="pl.43.10"></a><var>43.10</var>value" means the sum of the monthly index values as initially reported by the Bureau of <br/>
<a id="pl.43.11"></a><var>43.11</var>Labor Statistics for the months of July, August, and September, divided by 3.<br/>
<a id="pl.43.12"></a><var>43.12</var>(c) Before January 1 of each year, the executive director must calculate the amount <br/>
<a id="pl.43.13"></a><var>43.13</var>of the cost-of-living adjustment by dividing the most recent average third quarter index <br/>
<a id="pl.43.14"></a><var>43.14</var>value by the same average third quarter index value from the previous year, subtract one <br/>
<a id="pl.43.15"></a><var>43.15</var>from the resulting quotient, and express the result as a percentage amount, which must be <br/>
<a id="pl.43.16"></a><var>43.16</var>rounded to the nearest one-tenth of one percent.<br/>
<a id="pl.43.17"></a><var>43.17</var>(d) The amount calculated under paragraph (c) is the full cost-of-living adjustment <br/>
<a id="pl.43.18"></a><var>43.18</var>to be applied as a permanent increase to the regular payment of each eligible member <br/>
<a id="pl.43.19"></a><var>43.19</var>on January 1 of the next calendar year. For any eligible member whose effective date <br/>
<a id="pl.43.20"></a><var>43.20</var>of benefit commencement occurred during the calendar year before the cost-of-living <br/>
<a id="pl.43.21"></a><var>43.21</var>adjustment is applied, the full increase amount must be prorated on the basis of whole <br/>
<a id="pl.43.22"></a><var>43.22</var>calendar quarters in benefit payment status in the calendar year prior to the January 1 on <br/>
<a id="pl.43.23"></a><var>43.23</var>which the cost-of-living adjustment is applied, calculated to the third decimal place.<br/>
<a id="pl.43.24"></a><var>43.24</var>(e) The adjustment must not be less than zero nor greater than five percent.<br/>
<a id="pl.43.25"></a><var>43.25</var>(f) If the funding ratio of the plan as determined in the most recent actuarial <br/>
<a id="pl.43.26"></a><var>43.26</var>valuation using the actuarial value of assets is less than 80 percent there will be no <br/>
<a id="pl.43.27"></a><var>43.27</var>postretirement adjustment the following January 1.<br/>
<a id="pl.43.28"></a><var>43.28</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2010.<br/>
<br/>
<a id="bill.1.62.0"></a><a id="pl.43.29"></a><var>43.29</var>    Sec. 62. Minnesota Statutes 2008, section 354A.31, subdivision 1, is amended to read:<br/>
<a id="pl.43.30"></a><var>43.30</var>    Subdivision 1. <b>Age and service requirements.</b> Any coordinated member or former <br/>
<a id="pl.43.31"></a><var>43.31</var>coordinated member of the St. Paul Teachers Retirement Fund Association who has <br/>
<a id="pl.43.32"></a><var>43.32</var>ceased to render teaching service for the school district in which the teachers retirement <br/>
<a id="pl.43.33"></a><var>43.33</var>fund association exists and who has either attained the age of at least 55 years with not <br/>
<a id="pl.43.34"></a><var>43.34</var>less than three years of allowable service credit or received credit for not less than 30 <br/>
<a id="pl.43.35"></a><var>43.35</var>years of allowable service regardless of age, shall be entitled upon written application to a <br/>
<a id="pl.44.1"></a><var>44.1</var>retirement annuity. Any coordinated member or former coordinated member of the Duluth <br/>
<a id="pl.44.2"></a><var>44.2</var>Teachers Retirement Fund Association who has ceased to render teaching service for the <br/>
<a id="pl.44.3"></a><var>44.3</var>school district in which the teacher retirement fund association exists and who has either <br/>
<a id="pl.44.4"></a><var>44.4</var>attained the age of at least 55 years with not less than three years of allowable service <br/>
<a id="pl.44.5"></a><var>44.5</var>credit if the member became an employee before July 1, 2010, or not less than five years <br/>
<a id="pl.44.6"></a><var>44.6</var>of allowable service credit if the member became an employee after June 30, 2010, or <br/>
<a id="pl.44.7"></a><var>44.7</var>received service credit for not less than 30 years of allowable service regardless of age, <br/>
<a id="pl.44.8"></a><var>44.8</var>shall be entitled upon written application to a retirement annuity.<br/>
<a id="pl.44.9"></a><var>44.9</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2010.<br/>
<br/>
<a id="bill.1.63.0"></a><a id="pl.44.10"></a><var>44.10</var>    Sec. 63. Minnesota Statutes 2008, section 354A.35, subdivision 1, is amended to read:<br/>
<a id="pl.44.11"></a><var>44.11</var>    Subdivision 1. <b>Death before retirement; refund.</b> If a coordinated member <br/>
<a id="pl.44.12"></a><var>44.12</var>or former coordinated member dies prior to retirement or prior to the receipt of any <br/>
<a id="pl.44.13"></a><var>44.13</var>retirement annuity or other benefit payment which is or may be payable and a surviving <br/>
<a id="pl.44.14"></a><var>44.14</var>spouse optional annuity is not payable pursuant to subdivision 2, a refund shall be paid to <br/>
<a id="pl.44.15"></a><var>44.15</var>the person's surviving spouse, or if there is none, to the person's designated beneficiary, <br/>
<a id="pl.44.16"></a><var>44.16</var>or if there is none, to the legal representative of the person's estate. For a coordinated <br/>
<a id="pl.44.17"></a><var>44.17</var>member or former coordinated member of the St. Paul Teachers Retirement Fund <br/>
<a id="pl.44.18"></a><var>44.18</var>Association, the refund shall be in an amount equal to the person's accumulated employee <br/>
<a id="pl.44.19"></a><var>44.19</var>contributions plus interest at the rate of six percent per annum compounded annually. For <br/>
<a id="pl.44.20"></a><var>44.20</var>a coordinated member or former coordinated member of the Duluth Teachers Retirement <br/>
<a id="pl.44.21"></a><var>44.21</var>Fund Association, the refund shall be in an amount equal to the person's accumulated <br/>
<a id="pl.44.22"></a><var>44.22</var>employee contributions plus interest at the rate of six percent per annum compounded <br/>
<a id="pl.44.23"></a><var>44.23</var>annually to July 1, 2010, and four percent per annum compounded annually thereafter.<br/>
<a id="pl.44.24"></a><var>44.24</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2010.<br/>
<br/>
<a id="bill.1.64.0"></a><a id="pl.44.25"></a><var>44.25</var>    Sec. 64. Minnesota Statutes 2008, section 354A.37, subdivision 2, is amended to read:<br/>
<a id="pl.44.26"></a><var>44.26</var>    Subd. 2. <b>Eligibility for deferred retirement annuity.</b> (a) Any coordinated member <br/>
<a id="pl.44.27"></a><var>44.27</var>who ceases to render teaching services for the school district in which the teachers <br/>
<a id="pl.44.28"></a><var>44.28</var>retirement fund association is located, with sufficient allowable service credit to meet <br/>
<a id="pl.44.29"></a><var>44.29</var>the minimum service requirements specified in section 
         <statute_ref>354A.31, subdivision 1</statute_ref>, shall be <br/>
<a id="pl.44.30"></a><var>44.30</var>entitled to a deferred retirement annuity in lieu of a refund pursuant to subdivision 1. The <br/>
<a id="pl.44.31"></a><var>44.31</var>deferred retirement annuity shall be computed pursuant to section 
         <statute_ref>354A.31</statute_ref> and shall be <br/>
<a id="pl.44.32"></a><var>44.32</var>augmented as provided in this subdivision. The deferred annuity shall commence upon <br/>
<a id="pl.45.1"></a><var>45.1</var>application after the person on deferred status attains at least the minimum age specified in <br/>
<a id="pl.45.2"></a><var>45.2</var>section 
         <statute_ref>354A.31, subdivision 1</statute_ref>. <br/>
<a id="pl.45.3"></a><var>45.3</var>(b) The monthly annuity amount that had accrued when the member ceased to <br/>
<a id="pl.45.4"></a><var>45.4</var>render teaching service must be augmented from the first day of the month following the <br/>
<a id="pl.45.5"></a><var>45.5</var>month during which the member ceased to render teaching service to the effective date <br/>
<a id="pl.45.6"></a><var>45.6</var>of retirement. There is no augmentation if this period is less than three months. For a <br/>
<a id="pl.45.7"></a><var>45.7</var>member of the St. Paul Teachers Retirement Fund Association, the rate of augmentation <br/>
<a id="pl.45.8"></a><var>45.8</var>is three percent compounded annually until January 1 of the year following the year in <br/>
<a id="pl.45.9"></a><var>45.9</var>which the former member attains age 55, and five percent compounded annually after that <br/>
<a id="pl.45.10"></a><var>45.10</var>date to the effective date of retirement if the employee became an employee before July <br/>
<a id="pl.45.11"></a><var>45.11</var>1, 2006, and at 2.5 percent compounded annually if the employee becomes an employee <br/>
<a id="pl.45.12"></a><var>45.12</var>after June 30, 2006. For a member of the Duluth Teachers Retirement Fund Association, <br/>
<a id="pl.45.13"></a><var>45.13</var>the rate of augmentation is three percent compounded annually until January 1 of the year <br/>
<a id="pl.45.14"></a><var>45.14</var>following the year in which the former member attains age 55, five percent compounded <br/>
<a id="pl.45.15"></a><var>45.15</var>annually after that date to July 1, 2012, and two percent compounded annually after that <br/>
<a id="pl.45.16"></a><var>45.16</var>date to the effective date of retirement if the employee became an employee before <br/>
<a id="pl.45.17"></a><var>45.17</var>July 1, 2006, and at 2.5 percent compounded annually to July 1, 2012, and two percent <br/>
<a id="pl.45.18"></a><var>45.18</var>compounded annually after that date to the effective date of retirement if the employee <br/>
<a id="pl.45.19"></a><var>45.19</var>becomes an employee after June 30, 2006. If a person has more than one period of <br/>
<a id="pl.45.20"></a><var>45.20</var>uninterrupted service, a separate average salary determined under section 
         <statute_ref>354A.31</statute_ref> must <br/>
<a id="pl.45.21"></a><var>45.21</var>be used for each period, and the monthly annuity amount related to each period must be <br/>
<a id="pl.45.22"></a><var>45.22</var>augmented as provided in this subdivision. The sum of the augmented monthly annuity <br/>
<a id="pl.45.23"></a><var>45.23</var>amounts determines the total deferred annuity payable. If a person repays a refund, the <br/>
<a id="pl.45.24"></a><var>45.24</var>service restored by the repayment must be considered as continuous with the next period <br/>
<a id="pl.45.25"></a><var>45.25</var>of service for which the person has credit with the fund. If a person does not render <br/>
<a id="pl.45.26"></a><var>45.26</var>teaching services in any one fiscal year or more consecutive fiscal years and then resumes <br/>
<a id="pl.45.27"></a><var>45.27</var>teaching service, the formula percentages used from the date of resumption of teaching <br/>
<a id="pl.45.28"></a><var>45.28</var>service are those applicable to new members. The mortality table and interest assumption <br/>
<a id="pl.45.29"></a><var>45.29</var>used to compute the annuity are the table established by the fund to compute other <br/>
<a id="pl.45.30"></a><var>45.30</var>annuities, and the interest assumption under section 
         <statute_ref>356.215</statute_ref> in effect when the member <br/>
<a id="pl.45.31"></a><var>45.31</var>retires. A period of uninterrupted service for the purpose of this subdivision means a <br/>
<a id="pl.45.32"></a><var>45.32</var>period of covered teaching service during which the member has not been separated from <br/>
<a id="pl.45.33"></a><var>45.33</var>active service for more than one fiscal year. <br/>
<a id="pl.45.34"></a><var>45.34</var>(c) The augmentation provided by this subdivision applies to the benefit provided <br/>
<a id="pl.45.35"></a><var>45.35</var>in section 
         <statute_ref>354A.35, subdivision 2</statute_ref>. The augmentation provided by this subdivision does <br/>
<a id="pl.46.1"></a><var>46.1</var>not apply to any period in which a person is on an approved leave of absence from an <br/>
<a id="pl.46.2"></a><var>46.2</var>employer unit. <br/>
<a id="pl.46.3"></a><var>46.3</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2010.<br/>
<br/>
<a id="bill.1.65.0"></a><a id="pl.46.4"></a><var>46.4</var>    Sec. 65. Minnesota Statutes 2008, section 354A.37, subdivision 3, is amended to read:<br/>
<a id="pl.46.5"></a><var>46.5</var>    Subd. 3. <b>Computation of refund amount.</b> A former coordinated member of the <br/>
<a id="pl.46.6"></a><var>46.6</var>St. Paul Teachers Retirement Fund Association who qualifies for a refund pursuant to <br/>
<a id="pl.46.7"></a><var>46.7</var>under subdivision 1 shall receive a refund equal to the amount of the former coordinated <br/>
<a id="pl.46.8"></a><var>46.8</var>member's accumulated employee contributions with interest at the rate of six percent per <br/>
<a id="pl.46.9"></a><var>46.9</var>annum compounded annually. A former coordinated member of the Duluth Teachers <br/>
<a id="pl.46.10"></a><var>46.10</var>Retirement Fund Association who qualifies for a refund under subdivision 1 shall receive <br/>
<a id="pl.46.11"></a><var>46.11</var>a refund equal to the amount of the former coordinated member's accumulated employee <br/>
<a id="pl.46.12"></a><var>46.12</var>contributions with interest at the rate of six percent per annum compounded annually to <br/>
<a id="pl.46.13"></a><var>46.13</var>July 1, 2010, and four percent per annum compounded annually thereafter.<br/>
<a id="pl.46.14"></a><var>46.14</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2010.<br/>
<br/>
<a id="bill.1.66.0"></a><a id="pl.46.15"></a><var>46.15</var>    Sec. 66. Minnesota Statutes 2008, section 354A.37, subdivision 4, is amended to read:<br/>
<a id="pl.46.16"></a><var>46.16</var>    Subd. 4. <b>Certain refunds at normal retirement age.</b> Any coordinated member <br/>
<a id="pl.46.17"></a><var>46.17</var>who has attained the normal retirement age with less than ten years of allowable service <br/>
<a id="pl.46.18"></a><var>46.18</var>credit and has terminated active teaching service shall be entitled to a refund in lieu of <br/>
<a id="pl.46.19"></a><var>46.19</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.46.20"></a><var>46.20</var>Paul Teachers Retirement Fund Association shall be equal to the coordinated member's <br/>
<a id="pl.46.21"></a><var>46.21</var>accumulated employee contributions plus interest at the rate of six percent compounded <br/>
<a id="pl.46.22"></a><var>46.22</var>annually. The refund for a member of the Duluth Teachers Retirement Fund Association <br/>
<a id="pl.46.23"></a><var>46.23</var>shall be equal to the coordinated member's accumulated employee contributions plus <br/>
<a id="pl.46.24"></a><var>46.24</var>interest at the rate of six percent compounded annually to July 1, 2010, and four percent <br/>
<a id="pl.46.25"></a><var>46.25</var>per annum compounded annually thereafter.<br/>
<a id="pl.46.26"></a><var>46.26</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2010.<br/>
<br/>
<a id="bill.1.67.0"></a><a id="pl.46.27"></a><var>46.27</var>    Sec. 67. Minnesota Statutes 2008, section 356.215, subdivision 8, is amended to read:<br/>
<a id="pl.46.28"></a><var>46.28</var>    Subd. 8. <b>Interest and salary assumptions.</b> (a) The actuarial valuation must use <br/>
<a id="pl.46.29"></a><var>46.29</var>the applicable following preretirement interest assumption and the applicable following <br/>
<a id="pl.46.30"></a><var>46.30</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.47.1"></a><var>47.1</var><br/>
<a id="pl.47.2"></a><var>47.2</var><br/>
<a id="pl.47.3"></a><var>47.3</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.47.4"></a><var>47.4</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.47.5"></a><var>47.5</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.47.6"></a><var>47.6</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.47.7"></a><var>47.7</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.47.8"></a><var>47.8</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.47.9"></a><var>47.9</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.47.10"></a><var>47.10</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.47.11"></a><var>47.11</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.47.12"></a><var>47.12</var><br/>
<a id="pl.47.13"></a><var>47.13</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.47.14"></a><var>47.14</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.47.15"></a><var>47.15</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.47.16"></a><var>47.16</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.47.17"></a><var>47.17</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.47.18"></a><var>47.18</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.47.19"></a><var>47.19</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.47.20"></a><var>47.20</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.47.21"></a><var>47.21</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.47.22"></a><var>47.22</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.47.23"></a><var>47.23</var><br/>
<a id="pl.47.24"></a><var>47.24</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.47.25"></a><var>47.25</var>    (b) Before July 1, 2010, the actuarial valuation must use the applicable following <br/>
<a id="pl.47.26"></a><var>47.26</var>single rate future salary increase assumption, the applicable following modified single <br/>
<a id="pl.47.27"></a><var>47.27</var>rate future salary increase assumption, or the applicable following graded rate future <br/>
<a id="pl.47.28"></a><var>47.28</var>salary increase assumption:<br/>
<a id="pl.47.29"></a><var>47.29</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.47.30"></a><var>47.30</var><br/>
<a id="pl.47.31"></a><var>47.31</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.47.32"></a><var>47.32</var><br/>
</td>
<td>legislators retirement plan<br/>
</td>
<td></td>
<td>5.0%<br/>
</td>
</tr>
<tr>
<td><a id="pl.47.33"></a><var>47.33</var><br/>
</td>
<td>judges retirement plan<br/>
</td>
<td></td>
<td>4.0 <br/>
</td>
</tr>
<tr>
<td><a id="pl.47.34"></a><var>47.34</var><br/>
</td>
<td>Minneapolis Police Relief Association<br/>
</td>
<td></td>
<td>4.0<br/>
</td>
</tr>
<tr>
<td><a id="pl.47.35"></a><var>47.35</var><br/>
</td>
<td>Fairmont Police Relief Association<br/>
</td>
<td></td>
<td>3.5<br/>
</td>
</tr>
<tr>
<td><a id="pl.47.36"></a><var>47.36</var><br/>
<a id="pl.47.37"></a><var>47.37</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.47.38"></a><var>47.38</var><br/>
</td>
<td>Virginia Fire Department Relief Association<br/>
</td>
<td></td>
<td>3.5<br/>
</td>
</tr>
<tr>
<td><a id="pl.47.39"></a><var>47.39</var><br/>
<a id="pl.47.40"></a><var>47.40</var><br/>
</td>
<td>Bloomington Fire Department Relief <br/>
                  		Association<br/>
</td>
<td></td>
<td>4.0<br/>
</td>
</tr>
</table><a id="pl.47.41"></a><var>47.41</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.48.1"></a><var>48.1</var><br/>
<a id="pl.48.2"></a><var>48.2</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.48.3"></a><var>48.3</var><br/>
<a id="pl.48.4"></a><var>48.4</var><br/>
<a id="pl.48.5"></a><var>48.5</var><br/>
<a id="pl.48.6"></a><var>48.6</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.48.7"></a><var>48.7</var>    (3) age-related select and ultimate future salary increase assumption or graded rate <br/>
<a id="pl.48.8"></a><var>48.8</var>future salary increase assumption<br/>
<table>
<col width="50px"/>
<col width="40"/>
<col width="25"/>
<tr>
<td><a id="pl.48.9"></a><var>48.9</var><br/>
<a id="pl.48.10"></a><var>48.10</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.48.11"></a><var>48.11</var><br/>
<a id="pl.48.12"></a><var>48.12</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.48.13"></a><var>48.13</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.48.14"></a><var>48.14</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.48.15"></a><var>48.15</var><br/>
<a id="pl.48.16"></a><var>48.16</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.48.17"></a><var>48.17</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.48.18"></a><var>48.18</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.48.19"></a><var>48.19</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.48.20"></a><var>48.20</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.48.21"></a><var>48.21</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.48.22"></a><var>48.22</var>The select calculation is: during the <br/>
<a id="pl.48.23"></a><var>48.23</var>designated select period, a designated <br/>
<a id="pl.48.24"></a><var>48.24</var>percentage rate is multiplied by the result of <br/>
<a id="pl.48.25"></a><var>48.25</var>the designated integer minus T, where T is the <br/>
<a id="pl.48.26"></a><var>48.26</var>number of completed years of service, and is <br/>
<a id="pl.48.27"></a><var>48.27</var>added to the applicable future salary increase <br/>
<a id="pl.48.28"></a><var>48.28</var>assumption. The designated select period is <br/>
<a id="pl.48.29"></a><var>48.29</var>five years and the designated integer is five <br/>
<a id="pl.48.30"></a><var>48.30</var>for the general state employees retirement <br/>
<a id="pl.48.31"></a><var>48.31</var>plan and the general public employees <br/>
<a id="pl.48.32"></a><var>48.32</var>retirement plan. The designated select period <br/>
<a id="pl.48.33"></a><var>48.33</var>is ten years and the designated integer is ten <br/>
<a id="pl.48.34"></a><var>48.34</var>for all other retirement plans covered by <br/>
<a id="pl.48.35"></a><var>48.35</var>this clause. The designated percentage rate <br/>
<a id="pl.48.36"></a><var>48.36</var>is: (1) 0.2 percent for the correctional state <br/>
<a id="pl.48.37"></a><var>48.37</var>employees retirement plan, the State Patrol <br/>
<a id="pl.48.38"></a><var>48.38</var>retirement plan, the public employees police <br/>
<a id="pl.48.39"></a><var>48.39</var>and fire plan, and the local government <br/>
<a id="pl.48.40"></a><var>48.40</var>correctional service plan; (2) 0.6 percent <br/>
<a id="pl.49.1"></a><var>49.1</var>for the general state employees retirement <br/>
<a id="pl.49.2"></a><var>49.2</var>plan and the general public employees <br/>
<a id="pl.49.3"></a><var>49.3</var>retirement plan; and (3) 0.3 percent for the <br/>
<a id="pl.49.4"></a><var>49.4</var>teachers retirement plan, the Duluth Teachers <br/>
<a id="pl.49.5"></a><var>49.5</var>Retirement Fund Association, and the St. <br/>
<a id="pl.49.6"></a><var>49.6</var>Paul Teachers Retirement Fund Association. <br/>
<a id="pl.49.7"></a><var>49.7</var>The select calculation for the Duluth Teachers <br/>
<a id="pl.49.8"></a><var>49.8</var>Retirement Fund Association is 8.00 percent <br/>
<a id="pl.49.9"></a><var>49.9</var>per year for service years one through seven, <br/>
<a id="pl.49.10"></a><var>49.10</var>7.25 percent per year for service years seven <br/>
<a id="pl.49.11"></a><var>49.11</var>and eight, and 6.50 percent per year for <br/>
<a id="pl.49.12"></a><var>49.12</var>service years eight and nine.<br/>
<a id="pl.49.13"></a><var>49.13</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.49.14"></a><var>49.14</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.49.15"></a><var>49.15</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.49.16"></a><var>49.16</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.49.17"></a><var>49.17</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.49.18"></a><var>49.18</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.49.19"></a><var>49.19</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.49.20"></a><var>49.20</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.49.21"></a><var>49.21</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.49.22"></a><var>49.22</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.49.23"></a><var>49.23</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.49.24"></a><var>49.24</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.49.25"></a><var>49.25</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.49.26"></a><var>49.26</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.49.27"></a><var>49.27</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.49.28"></a><var>49.28</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.49.29"></a><var>49.29</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.49.30"></a><var>49.30</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.49.31"></a><var>49.31</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.49.32"></a><var>49.32</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.49.33"></a><var>49.33</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.49.34"></a><var>49.34</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.49.35"></a><var>49.35</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.49.36"></a><var>49.36</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.49.37"></a><var>49.37</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.49.38"></a><var>49.38</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.49.39"></a><var>49.39</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.49.40"></a><var>49.40</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.49.41"></a><var>49.41</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.50.1"></a><var>50.1</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.50.2"></a><var>50.2</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.50.3"></a><var>50.3</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.50.4"></a><var>50.4</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.50.5"></a><var>50.5</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.50.6"></a><var>50.6</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.50.7"></a><var>50.7</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.50.8"></a><var>50.8</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.50.9"></a><var>50.9</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.50.10"></a><var>50.10</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.50.11"></a><var>50.11</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.50.12"></a><var>50.12</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.50.13"></a><var>50.13</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.50.14"></a><var>50.14</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.50.15"></a><var>50.15</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.50.16"></a><var>50.16</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.50.17"></a><var>50.17</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.50.18"></a><var>50.18</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.50.19"></a><var>50.19</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.50.20"></a><var>50.20</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.50.21"></a><var>50.21</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.50.22"></a><var>50.22</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.50.23"></a><var>50.23</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.50.24"></a><var>50.24</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.50.25"></a><var>50.25</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.50.26"></a><var>50.26</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.50.27"></a><var>50.27</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.50.28"></a><var>50.28</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.50.29"></a><var>50.29</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.50.30"></a><var>50.30</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.50.31"></a><var>50.31</var><br/>
<a id="pl.50.32"></a><var>50.32</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.50.33"></a><var>50.33</var><br/>
</td>
<td align="center">1<br/>
</td>
<td align="center">12.03%<br/>
</td>
</tr>
<tr>
<td><a id="pl.50.34"></a><var>50.34</var><br/>
</td>
<td align="center">2<br/>
</td>
<td align="center">8.90<br/>
</td>
</tr>
<tr>
<td><a id="pl.50.35"></a><var>50.35</var><br/>
</td>
<td align="center">3<br/>
</td>
<td align="center">7.46<br/>
</td>
</tr>
<tr>
<td><a id="pl.50.36"></a><var>50.36</var><br/>
</td>
<td align="center">4<br/>
</td>
<td align="center">6.58<br/>
</td>
</tr>
<tr>
<td><a id="pl.50.37"></a><var>50.37</var><br/>
</td>
<td align="center">5<br/>
</td>
<td align="center">5.97<br/>
</td>
</tr>
<tr>
<td><a id="pl.50.38"></a><var>50.38</var><br/>
</td>
<td align="center">6<br/>
</td>
<td align="center">5.52<br/>
</td>
</tr>
<tr>
<td><a id="pl.50.39"></a><var>50.39</var><br/>
</td>
<td align="center">7<br/>
</td>
<td align="center">5.16<br/>
</td>
</tr>
<tr>
<td><a id="pl.50.40"></a><var>50.40</var><br/>
</td>
<td align="center">8<br/>
</td>
<td align="center">4.87<br/>
</td>
</tr>
<tr>
<td><a id="pl.50.41"></a><var>50.41</var><br/>
</td>
<td align="center">9<br/>
</td>
<td align="center">4.63<br/>
</td>
</tr>
<tr>
<td><a id="pl.50.42"></a><var>50.42</var><br/>
</td>
<td align="center">10<br/>
</td>
<td align="center">4.42<br/>
</td>
</tr>
<tr>
<td><a id="pl.50.43"></a><var>50.43</var><br/>
</td>
<td align="center">11<br/>
</td>
<td align="center">4.24<br/>
</td>
</tr>
<tr>
<td><a id="pl.51.1"></a><var>51.1</var><br/>
</td>
<td align="center">12<br/>
</td>
<td align="center">4.08<br/>
</td>
</tr>
<tr>
<td><a id="pl.51.2"></a><var>51.2</var><br/>
</td>
<td align="center">13<br/>
</td>
<td align="center">3.94<br/>
</td>
</tr>
<tr>
<td><a id="pl.51.3"></a><var>51.3</var><br/>
</td>
<td align="center">14<br/>
</td>
<td align="center">3.82<br/>
</td>
</tr>
<tr>
<td><a id="pl.51.4"></a><var>51.4</var><br/>
</td>
<td align="center">15<br/>
</td>
<td align="center">3.70<br/>
</td>
</tr>
<tr>
<td><a id="pl.51.5"></a><var>51.5</var><br/>
</td>
<td align="center">16<br/>
</td>
<td align="center">3.60<br/>
</td>
</tr>
<tr>
<td><a id="pl.51.6"></a><var>51.6</var><br/>
</td>
<td align="center">17<br/>
</td>
<td align="center">3.51<br/>
</td>
</tr>
<tr>
<td><a id="pl.51.7"></a><var>51.7</var><br/>
</td>
<td align="center">18<br/>
</td>
<td align="center">3.50<br/>
</td>
</tr>
<tr>
<td><a id="pl.51.8"></a><var>51.8</var><br/>
</td>
<td align="center">19<br/>
</td>
<td align="center">3.50<br/>
</td>
</tr>
<tr>
<td><a id="pl.51.9"></a><var>51.9</var><br/>
</td>
<td align="center">20<br/>
</td>
<td align="center">3.50<br/>
</td>
</tr>
<tr>
<td><a id="pl.51.10"></a><var>51.10</var><br/>
</td>
<td align="center">21<br/>
</td>
<td align="center">3.50<br/>
</td>
</tr>
<tr>
<td><a id="pl.51.11"></a><var>51.11</var><br/>
</td>
<td align="center">22<br/>
</td>
<td align="center">3.50<br/>
</td>
</tr>
<tr>
<td><a id="pl.51.12"></a><var>51.12</var><br/>
</td>
<td align="center">23<br/>
</td>
<td align="center">3.50<br/>
</td>
</tr>
<tr>
<td><a id="pl.51.13"></a><var>51.13</var><br/>
</td>
<td align="center">24<br/>
</td>
<td align="center">3.50<br/>
</td>
</tr>
<tr>
<td><a id="pl.51.14"></a><var>51.14</var><br/>
</td>
<td align="center">25<br/>
</td>
<td align="center">3.50<br/>
</td>
</tr>
<tr>
<td><a id="pl.51.15"></a><var>51.15</var><br/>
</td>
<td align="center">26<br/>
</td>
<td align="center">3.50<br/>
</td>
</tr>
<tr>
<td><a id="pl.51.16"></a><var>51.16</var><br/>
</td>
<td align="center">27<br/>
</td>
<td align="center">3.50<br/>
</td>
</tr>
<tr>
<td><a id="pl.51.17"></a><var>51.17</var><br/>
</td>
<td align="center">28<br/>
</td>
<td align="center">3.50<br/>
</td>
</tr>
<tr>
<td><a id="pl.51.18"></a><var>51.18</var><br/>
</td>
<td align="center">29<br/>
</td>
<td align="center">3.50<br/>
</td>
</tr>
<tr>
<td><a id="pl.51.19"></a><var>51.19</var><br/>
</td>
<td align="center">30 or more<br/>
</td>
<td align="center">3.50<br/>
</td>
</tr>
</table><a id="pl.51.20"></a><var>51.20</var>    (c) Before July 2, 2010, the actuarial valuation must use the applicable following <br/>
<a id="pl.51.21"></a><var>51.21</var>payroll growth assumption for calculating the amortization requirement for the unfunded <br/>
<a id="pl.51.22"></a><var>51.22</var>actuarial accrued liability where the amortization retirement is calculated as a level <br/>
<a id="pl.51.23"></a><var>51.23</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.51.24"></a><var>51.24</var><br/>
<a id="pl.51.25"></a><var>51.25</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.51.26"></a><var>51.26</var><br/>
</td>
<td>general state employees retirement plan<br/>
</td>
<td></td>
<td>4.50%<br/>
</td>
</tr>
<tr>
<td><a id="pl.51.27"></a><var>51.27</var><br/>
</td>
<td>correctional state employees retirement plan<br/>
</td>
<td></td>
<td>4.50<br/>
</td>
</tr>
<tr>
<td><a id="pl.51.28"></a><var>51.28</var><br/>
</td>
<td>State Patrol retirement plan<br/>
</td>
<td></td>
<td>4.50<br/>
</td>
</tr>
<tr>
<td><a id="pl.51.29"></a><var>51.29</var><br/>
</td>
<td>legislators retirement plan<br/>
</td>
<td></td>
<td>4.50<br/>
</td>
</tr>
<tr>
<td><a id="pl.51.30"></a><var>51.30</var><br/>
</td>
<td>judges retirement plan<br/>
</td>
<td></td>
<td>4.00<br/>
</td>
</tr>
<tr>
<td><a id="pl.51.31"></a><var>51.31</var><br/>
<a id="pl.51.32"></a><var>51.32</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.51.33"></a><var>51.33</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.51.34"></a><var>51.34</var><br/>
<a id="pl.51.35"></a><var>51.35</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.51.36"></a><var>51.36</var><br/>
</td>
<td>teachers retirement plan<br/>
</td>
<td></td>
<td>4.50<br/>
</td>
</tr>
<tr>
<td><a id="pl.51.37"></a><var>51.37</var><br/>
</td>
<td>Duluth teachers retirement plan<br/>
</td>
<td></td>
<td>4.50<br/>
</td>
</tr>
<tr>
<td><a id="pl.51.38"></a><var>51.38</var><br/>
</td>
<td>St. Paul teachers retirement plan<br/>
</td>
<td></td>
<td>5.00<br/>
</td>
</tr>
</table><a id="pl.51.39"></a><var>51.39</var>    (d) After July 1, 2010, the assumptions set forth in paragraphs (b) and (c) continue to <br/>
<a id="pl.51.40"></a><var>51.40</var>apply, unless a different salary assumption or a different payroll increase assumption:<br/>
<a id="pl.51.41"></a><var>51.41</var>    (1) has been proposed by the governing board of the applicable retirement plan;<br/>
<a id="pl.52.1"></a><var>52.1</var>    (2) is accompanied by the concurring recommendation of the actuary retained under <br/>
<a id="pl.52.2"></a><var>52.2</var>section 
         <statute_ref>356.214, subdivision 1</statute_ref>, if applicable, or by the approved actuary preparing the <br/>
<a id="pl.52.3"></a><var>52.3</var>most recent actuarial valuation report if section 
         <statute_ref>356.214</statute_ref> does not apply; and<br/>
<a id="pl.52.4"></a><var>52.4</var>    (3) has been approved or deemed approved under subdivision 18.<br/>
<a id="pl.52.5"></a><var>52.5</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.1.68.0"></a><a id="pl.52.6"></a><var>52.6</var>    Sec. 68. Minnesota Statutes 2009 Supplement, section 356.215, subdivision 11, <br/>
<a id="pl.52.7"></a><var>52.7</var>is amended to read:<br/>
<a id="pl.52.8"></a><var>52.8</var>    Subd. 11. <b>Amortization contributions.</b> (a) In addition to the exhibit indicating <br/>
<a id="pl.52.9"></a><var>52.9</var>the level normal cost, the actuarial valuation of the retirement plan must contain an <br/>
<a id="pl.52.10"></a><var>52.10</var>exhibit for financial reporting purposes indicating the additional annual contribution <br/>
<a id="pl.52.11"></a><var>52.11</var>sufficient to amortize the unfunded actuarial accrued liability and must contain an exhibit <br/>
<a id="pl.52.12"></a><var>52.12</var>for contribution determination purposes indicating the additional contribution sufficient <br/>
<a id="pl.52.13"></a><var>52.13</var>to amortize the unfunded actuarial accrued liability. For the retirement plans listed in <br/>
<a id="pl.52.14"></a><var>52.14</var>subdivision 8, paragraph (c), the additional contribution must be calculated on a level <br/>
<a id="pl.52.15"></a><var>52.15</var>percentage of covered payroll basis by the established date for full funding in effect when <br/>
<a id="pl.52.16"></a><var>52.16</var>the valuation is prepared, assuming annual payroll growth at the applicable percentage <br/>
<a id="pl.52.17"></a><var>52.17</var>rate set forth in subdivision 8, paragraph (c). For all other retirement plans, the additional <br/>
<a id="pl.52.18"></a><var>52.18</var>annual contribution must be calculated on a level annual dollar amount basis. <br/>
<a id="pl.52.19"></a><var>52.19</var>    (b) For any retirement plan other than the Minneapolis Employees Retirement Fund, <br/>
<a id="pl.52.20"></a><var>52.20</var>the general employees retirement plan of the Public Employees Retirement Association, <br/>
<a id="pl.52.21"></a><var>52.21</var>the general state employees retirement plan of the Minnesota State Retirement System, <br/>
<a id="pl.52.22"></a><var>52.22</var>and the St. Paul Teachers Retirement Fund Association, if there has not been a change in <br/>
<a id="pl.52.23"></a><var>52.23</var>the actuarial assumptions used for calculating the actuarial accrued liability of the fund, a <br/>
<a id="pl.52.24"></a><var>52.24</var>change in the benefit plan governing annuities and benefits payable from the fund, a <br/>
<a id="pl.52.25"></a><var>52.25</var>change in the actuarial cost method used in calculating the actuarial accrued liability of all <br/>
<a id="pl.52.26"></a><var>52.26</var>or a portion of the fund, or a combination of the three, which change or changes by itself <br/>
<a id="pl.52.27"></a><var>52.27</var>or by themselves without inclusion of any other items of increase or decrease produce a <br/>
<a id="pl.52.28"></a><var>52.28</var>net increase in the unfunded actuarial accrued liability of the fund, the established date for <br/>
<a id="pl.52.29"></a><var>52.29</var>full funding is the first actuarial valuation date occurring after June 1, 2020.<br/>
<a id="pl.52.30"></a><var>52.30</var>    (c) For any retirement plan other than the Minneapolis Employees Retirement <br/>
<a id="pl.52.31"></a><var>52.31</var>Fund and the general employees retirement plan of the Public Employees Retirement <br/>
<a id="pl.52.32"></a><var>52.32</var>Association, if there has been a change in any or all of the actuarial assumptions used <br/>
<a id="pl.52.33"></a><var>52.33</var>for calculating the actuarial accrued liability of the fund, a change in the benefit plan <br/>
<a id="pl.52.34"></a><var>52.34</var>governing annuities and benefits payable from the fund, a change in the actuarial cost <br/>
<a id="pl.52.35"></a><var>52.35</var>method used in calculating the actuarial accrued liability of all or a portion of the fund, <br/>
<a id="pl.53.1"></a><var>53.1</var>or a combination of the three, and the change or changes, by itself or by themselves and <br/>
<a id="pl.53.2"></a><var>53.2</var>without inclusion of any other items of increase or decrease, produce a net increase in the <br/>
<a id="pl.53.3"></a><var>53.3</var>unfunded actuarial accrued liability in the fund, the established date for full funding must <br/>
<a id="pl.53.4"></a><var>53.4</var>be determined using the following procedure:<br/>
<a id="pl.53.5"></a><var>53.5</var>    (i) the unfunded actuarial accrued liability of the fund must be determined in <br/>
<a id="pl.53.6"></a><var>53.6</var>accordance with the plan provisions governing annuities and retirement benefits and the <br/>
<a id="pl.53.7"></a><var>53.7</var>actuarial assumptions in effect before an applicable change;<br/>
<a id="pl.53.8"></a><var>53.8</var>    (ii) the level annual dollar contribution or level percentage, whichever is applicable, <br/>
<a id="pl.53.9"></a><var>53.9</var>needed to amortize the unfunded actuarial accrued liability amount determined under item <br/>
<a id="pl.53.10"></a><var>53.10</var>(i) by the established date for full funding in effect before the change must be calculated <br/>
<a id="pl.53.11"></a><var>53.11</var>using the interest assumption specified in subdivision 8 in effect before the change;<br/>
<a id="pl.53.12"></a><var>53.12</var>    (iii) the unfunded actuarial accrued liability of the fund must be determined in <br/>
<a id="pl.53.13"></a><var>53.13</var>accordance with any new plan provisions governing annuities and benefits payable from <br/>
<a id="pl.53.14"></a><var>53.14</var>the fund and any new actuarial assumptions and the remaining plan provisions governing <br/>
<a id="pl.53.15"></a><var>53.15</var>annuities and benefits payable from the fund and actuarial assumptions in effect before <br/>
<a id="pl.53.16"></a><var>53.16</var>the change;<br/>
<a id="pl.53.17"></a><var>53.17</var>    (iv) the level annual dollar contribution or level percentage, whichever is applicable, <br/>
<a id="pl.53.18"></a><var>53.18</var>needed to amortize the difference between the unfunded actuarial accrued liability amount <br/>
<a id="pl.53.19"></a><var>53.19</var>calculated under item (i) and the unfunded actuarial accrued liability amount calculated <br/>
<a id="pl.53.20"></a><var>53.20</var>under item (iii) over a period of 30 years from the end of the plan year in which the <br/>
<a id="pl.53.21"></a><var>53.21</var>applicable change is effective must be calculated using the applicable interest assumption <br/>
<a id="pl.53.22"></a><var>53.22</var>specified in subdivision 8 in effect after any applicable change;<br/>
<a id="pl.53.23"></a><var>53.23</var>    (v) the level annual dollar or level percentage amortization contribution under item <br/>
<a id="pl.53.24"></a><var>53.24</var>(iv) must be added to the level annual dollar amortization contribution or level percentage <br/>
<a id="pl.53.25"></a><var>53.25</var>calculated under item (ii);<br/>
<a id="pl.53.26"></a><var>53.26</var>    (vi) the period in which the unfunded actuarial accrued liability amount determined <br/>
<a id="pl.53.27"></a><var>53.27</var>in item (iii) is amortized by the total level annual dollar or level percentage amortization <br/>
<a id="pl.53.28"></a><var>53.28</var>contribution computed under item (v) must be calculated using the interest assumption <br/>
<a id="pl.53.29"></a><var>53.29</var>specified in subdivision 8 in effect after any applicable change, rounded to the nearest <br/>
<a id="pl.53.30"></a><var>53.30</var>integral number of years, but not to exceed 30 years from the end of the plan year in <br/>
<a id="pl.53.31"></a><var>53.31</var>which the determination of the established date for full funding using the procedure set <br/>
<a id="pl.53.32"></a><var>53.32</var>forth in this clause is made and not to be less than the period of years beginning in the <br/>
<a id="pl.53.33"></a><var>53.33</var>plan year in which the determination of the established date for full funding using the <br/>
<a id="pl.53.34"></a><var>53.34</var>procedure set forth in this clause is made and ending by the date for full funding in effect <br/>
<a id="pl.53.35"></a><var>53.35</var>before the change; and<br/>
<a id="pl.54.1"></a><var>54.1</var>    (vii) the period determined under item (vi) must be added to the date as of which <br/>
<a id="pl.54.2"></a><var>54.2</var>the actuarial valuation was prepared and the date obtained is the new established date <br/>
<a id="pl.54.3"></a><var>54.3</var>for full funding.<br/>
<a id="pl.54.4"></a><var>54.4</var>    (d) For the Minneapolis Employees Retirement Fund, the established date for full <br/>
<a id="pl.54.5"></a><var>54.5</var>funding is June 30, 2020.<br/>
<a id="pl.54.6"></a><var>54.6</var>    (e) For the general employees retirement plan of the Public Employees Retirement <br/>
<a id="pl.54.7"></a><var>54.7</var>Association, the established date for full funding is June 30, 2031.<br/>
<a id="pl.54.8"></a><var>54.8</var>    (f) For the Teachers Retirement Association, the established date for full funding is <br/>
<a id="pl.54.9"></a><var>54.9</var>June 30, 2037.<br/>
<a id="pl.54.10"></a><var>54.10</var>    (g) For the correctional state employees retirement plan of the Minnesota State <br/>
<a id="pl.54.11"></a><var>54.11</var>Retirement System, the established date for full funding is June 30, 2038.<br/>
<a id="pl.54.12"></a><var>54.12</var>    (h) For the judges retirement plan, the established date for full funding is June <br/>
<a id="pl.54.13"></a><var>54.13</var>30, 2038.<br/>
<a id="pl.54.14"></a><var>54.14</var>    (i) For the public employees police and fire retirement plan, the established date <br/>
<a id="pl.54.15"></a><var>54.15</var>for full funding is June 30, 2038.<br/>
<a id="pl.54.16"></a><var>54.16</var>    (j) For the St. Paul Teachers Retirement Fund Association, the established date for <br/>
<a id="pl.54.17"></a><var>54.17</var>full funding is June 30 of the 25th year from the valuation date. In addition to other <br/>
<a id="pl.54.18"></a><var>54.18</var>requirements of this chapter, the annual actuarial valuation shall contain an exhibit <br/>
<a id="pl.54.19"></a><var>54.19</var>indicating the funded ratio and the deficiency or sufficiency in annual contributions when <br/>
<a id="pl.54.20"></a><var>54.20</var>comparing liabilities to the market value of the assets of the fund as of the close of the <br/>
<a id="pl.54.21"></a><var>54.21</var>most recent fiscal year.<br/>
<a id="pl.54.22"></a><var>54.22</var>    (k) For the general state employees retirement plan of the Minnesota State <br/>
<a id="pl.54.23"></a><var>54.23</var>Retirement System, the established date for full funding is June 30, 2040.<br/>
<a id="pl.54.24"></a><var>54.24</var>(l) For the retirement plans for which the annual actuarial valuation indicates an <br/>
<a id="pl.54.25"></a><var>54.25</var>excess of valuation assets over the actuarial accrued liability, the valuation assets in <br/>
<a id="pl.54.26"></a><var>54.26</var>excess of the actuarial accrued liability must be recognized as a reduction in the current <br/>
<a id="pl.54.27"></a><var>54.27</var>contribution requirements by an amount equal to the amortization of the excess expressed <br/>
<a id="pl.54.28"></a><var>54.28</var>as a level percentage of pay over a 30-year period beginning anew with each annual <br/>
<a id="pl.54.29"></a><var>54.29</var>actuarial valuation of the plan.<br/>
<a id="pl.54.30"></a><var>54.30</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.1.69.0"></a><a id="pl.54.31"></a><var>54.31</var>    Sec. 69. Minnesota Statutes 2008, section 356.30, subdivision 1, is amended to read:<br/>
<a id="pl.54.32"></a><var>54.32</var>    Subdivision 1.  <b>Eligibility; computation of annuity.</b> (a) Notwithstanding any <br/>
<a id="pl.54.33"></a><var>54.33</var>provisions of the laws governing the retirement plans enumerated in subdivision 3, a <br/>
<a id="pl.54.34"></a><var>54.34</var>person who has met the qualifications of paragraph (b) may elect to receive a retirement <br/>
<a id="pl.54.35"></a><var>54.35</var>annuity from each enumerated retirement plan in which the person has at least one-half <br/>
<a id="pl.55.1"></a><var>55.1</var>year of allowable service, based on the allowable service in each plan, subject to the <br/>
<a id="pl.55.2"></a><var>55.2</var>provisions of paragraph (c). <br/>
<a id="pl.55.3"></a><var>55.3</var>(b) A person may receive, upon retirement, a retirement annuity from each <br/>
<a id="pl.55.4"></a><var>55.4</var>enumerated retirement plan in which the person has at least one-half year of allowable <br/>
<a id="pl.55.5"></a><var>55.5</var>service, and augmentation of a deferred annuity calculated at the appropriate rate under <br/>
<a id="pl.55.6"></a><var>55.6</var>the laws governing each public pension plan or fund named in subdivision 3, based on <br/>
<a id="pl.55.7"></a><var>55.7</var>the date of the person's initial entry into public employment from the date the person <br/>
<a id="pl.55.8"></a><var>55.8</var>terminated all public service if: <br/>
<a id="pl.55.9"></a><var>55.9</var>(1) the person has allowable service totaling an amount that allows the person to <br/>
<a id="pl.55.10"></a><var>55.10</var>receive an annuity in any two or more of the enumerated plans; <br/>
<a id="pl.55.11"></a><var>55.11</var>(2) the person has sufficient allowable service in total that equals or exceeds the <br/>
<a id="pl.55.12"></a><var>55.12</var>applicable service credit vesting requirement of the retirement plan with the longest <br/>
<a id="pl.55.13"></a><var>55.13</var>applicable service credit vesting requirement; and <br/>
<a id="pl.55.14"></a><var>55.14</var>(2) (3) the person has not begun to receive an annuity from any enumerated plan or <br/>
<a id="pl.55.15"></a><var>55.15</var>the person has made application for benefits from each applicable plan and the effective <br/>
<a id="pl.55.16"></a><var>55.16</var>dates of the retirement annuity with each plan under which the person chooses to receive <br/>
<a id="pl.55.17"></a><var>55.17</var>an annuity are within a one-year period. <br/>
<a id="pl.55.18"></a><var>55.18</var>(c) The retirement annuity from each plan must be based upon the allowable service, <br/>
<a id="pl.55.19"></a><var>55.19</var>accrual rates, and average salary in the applicable plan except as further specified or <br/>
<a id="pl.55.20"></a><var>55.20</var>modified in the following clauses: <br/>
<a id="pl.55.21"></a><var>55.21</var>(1) the laws governing annuities must be the law in effect on the date of termination <br/>
<a id="pl.55.22"></a><var>55.22</var>from the last period of public service under a covered retirement plan with which the <br/>
<a id="pl.55.23"></a><var>55.23</var>person earned a minimum of one-half year of allowable service credit during that <br/>
<a id="pl.55.24"></a><var>55.24</var>employment; <br/>
<a id="pl.55.25"></a><var>55.25</var>(2) the "average salary" on which the annuity from each covered plan in which <br/>
<a id="pl.55.26"></a><var>55.26</var>the employee has credit in a formula plan must be based on the employee's highest five <br/>
<a id="pl.55.27"></a><var>55.27</var>successive years of covered salary during the entire service in covered plans; <br/>
<a id="pl.55.28"></a><var>55.28</var>(3) the accrual rates to be used by each plan must be those percentages prescribed by <br/>
<a id="pl.55.29"></a><var>55.29</var>each plan's formula as continued for the respective years of allowable service from one <br/>
<a id="pl.55.30"></a><var>55.30</var>plan to the next, recognizing all previous allowable service with the other covered plans; <br/>
<a id="pl.55.31"></a><var>55.31</var>(4) the allowable service in all the plans must be combined in determining eligibility <br/>
<a id="pl.55.32"></a><var>55.32</var>for and the application of each plan's provisions in respect to reduction in the annuity <br/>
<a id="pl.55.33"></a><var>55.33</var>amount for retirement prior to normal retirement age; and <br/>
<a id="pl.55.34"></a><var>55.34</var>(5) the annuity amount payable for any allowable service under a nonformula plan <br/>
<a id="pl.55.35"></a><var>55.35</var>of a covered plan must not be affected, but such service and covered salary must be used <br/>
<a id="pl.55.36"></a><var>55.36</var>in the above calculation. <br/>
<a id="pl.56.1"></a><var>56.1</var>(d) This section does not apply to any person whose final termination from the last <br/>
<a id="pl.56.2"></a><var>56.2</var>public service under a covered plan was before May 1, 1975. <br/>
<a id="pl.56.3"></a><var>56.3</var>(e) For the purpose of computing annuities under this section, the accrual rates <br/>
<a id="pl.56.4"></a><var>56.4</var>used by any covered plan, except the public employees police and fire plan, the judges <br/>
<a id="pl.56.5"></a><var>56.5</var>retirement fund, and the State Patrol retirement plan, must not exceed the percent specified <br/>
<a id="pl.56.6"></a><var>56.6</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.56.7"></a><var>56.7</var>thereof. The formula percentage used by the judges retirement fund must not exceed the <br/>
<a id="pl.56.8"></a><var>56.8</var>percentage rate specified in section 
         <statute_ref>356.315, subdivision 8</statute_ref>, per year of service for any <br/>
<a id="pl.56.9"></a><var>56.9</var>year of service or fraction thereof. The accrual rate used by the public employees police <br/>
<a id="pl.56.10"></a><var>56.10</var>and fire plan and the State Patrol retirement plan must not exceed the percentage rate <br/>
<a id="pl.56.11"></a><var>56.11</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.56.12"></a><var>56.12</var>fraction thereof. The accrual rate or rates used by the legislators retirement plan must not <br/>
<a id="pl.56.13"></a><var>56.13</var>exceed 2.5 percent, but this limit does not apply to the adjustment provided under section <br/>
<statute_ref><a id="pl.56.14"></a><var>56.14</var>3A.02, subdivision 1
         </statute_ref>, paragraph (c). <br/>
<a id="pl.56.15"></a><var>56.15</var>(f) Any period of time for which a person has credit in more than one of the covered <br/>
<a id="pl.56.16"></a><var>56.16</var>plans must be used only once for the purpose of determining total allowable service. <br/>
<a id="pl.56.17"></a><var>56.17</var>(g) If the period of duplicated service credit is more than one-half year, or the person <br/>
<a id="pl.56.18"></a><var>56.18</var>has credit for more than one-half year, with each of the plans, each plan must apply its <br/>
<a id="pl.56.19"></a><var>56.19</var>formula to a prorated service credit for the period of duplicated service based on a fraction <br/>
<a id="pl.56.20"></a><var>56.20</var>of the salary on which deductions were paid to that fund for the period divided by the total <br/>
<a id="pl.56.21"></a><var>56.21</var>salary on which deductions were paid to all plans for the period. <br/>
<a id="pl.56.22"></a><var>56.22</var>(h) If the period of duplicated service credit is less than one-half year, or when <br/>
<a id="pl.56.23"></a><var>56.23</var>added to other service credit with that plan is less than one-half year, the service credit <br/>
<a id="pl.56.24"></a><var>56.24</var>must be ignored and a refund of contributions made to the person in accord with that <br/>
<a id="pl.56.25"></a><var>56.25</var>plan's refund provisions. <br/>
<a id="pl.56.26"></a><var>56.26</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.1.70.0"></a><a id="pl.56.27"></a><var>56.27</var>    Sec. 70. Minnesota Statutes 2008, section 356.302, subdivision 3, is amended to read:<br/>
<a id="pl.56.28"></a><var>56.28</var>    Subd. 3. <b>General employee plan eligibility requirements.</b> A disabled member <br/>
<a id="pl.56.29"></a><var>56.29</var>of a covered retirement plan who has credit for allowable service in a combination of <br/>
<a id="pl.56.30"></a><var>56.30</var>general employee retirement plans is entitled to a combined service disability benefit <br/>
<a id="pl.56.31"></a><var>56.31</var>if the member:<br/>
<a id="pl.56.32"></a><var>56.32</var>(1) is less than the normal retirement age on the date of the application for the <br/>
<a id="pl.56.33"></a><var>56.33</var>disability benefit;<br/>
<a id="pl.56.34"></a><var>56.34</var>(2) has become totally and permanently disabled;<br/>
<a id="pl.57.1"></a><var>57.1</var>(3) has credit for allowable service in any combination of general employee <br/>
<a id="pl.57.2"></a><var>57.2</var>retirement plans totaling at least three years the number of years required by the applicable <br/>
<a id="pl.57.3"></a><var>57.3</var>retirement plan with the longest service credit requirement for disability benefit receipt;<br/>
<a id="pl.57.4"></a><var>57.4</var>(4) has credit for at least one-half year of allowable service with the current general <br/>
<a id="pl.57.5"></a><var>57.5</var>employee retirement plan before the commencement of the disability;<br/>
<a id="pl.57.6"></a><var>57.6</var>(5) has at least three continuous years of allowable service credit by the general <br/>
<a id="pl.57.7"></a><var>57.7</var>employee retirement plan or has at least a total of three years of allowable service credit <br/>
<a id="pl.57.8"></a><var>57.8</var>by a combination of general employee retirement plans in a 72-month period during <br/>
<a id="pl.57.9"></a><var>57.9</var>which no interruption of allowable service credit from a termination of employment <br/>
<a id="pl.57.10"></a><var>57.10</var>exceeded 29 days; and<br/>
<a id="pl.57.11"></a><var>57.11</var>(6) was not receiving a retirement annuity or disability benefit from any covered <br/>
<a id="pl.57.12"></a><var>57.12</var>general employee retirement plan at the time of the commencement of the disability.<br/>
<a id="pl.57.13"></a><var>57.13</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.1.71.0"></a><a id="pl.57.14"></a><var>57.14</var>    Sec. 71. Minnesota Statutes 2008, section 356.302, subdivision 4, is amended to read:<br/>
<a id="pl.57.15"></a><var>57.15</var>    Subd. 4. <b>Public safety plan eligibility requirements.</b> A disabled member of a <br/>
<a id="pl.57.16"></a><var>57.16</var>covered retirement plan who has credit for allowable service in a combination of public <br/>
<a id="pl.57.17"></a><var>57.17</var>safety employee retirement plans is entitled to a combined service disability benefit if the <br/>
<a id="pl.57.18"></a><var>57.18</var>member:<br/>
<a id="pl.57.19"></a><var>57.19</var>(1) has become occupationally disabled;<br/>
<a id="pl.57.20"></a><var>57.20</var>(2) has credit for allowable service in any combination of public safety employee <br/>
<a id="pl.57.21"></a><var>57.21</var>retirement plans totaling at least one year the minimum period of service credit required by <br/>
<a id="pl.57.22"></a><var>57.22</var>the applicable retirement plan with the longest service credit eligibility requirement for the <br/>
<a id="pl.57.23"></a><var>57.23</var>receipt of a duty-related disability benefit if the disability is duty-related or totaling at least <br/>
<a id="pl.57.24"></a><var>57.24</var>three years the minimum period of service credit required by the applicable retirement <br/>
<a id="pl.57.25"></a><var>57.25</var>plan with the longest service credit eligibility requirement for a disability benefit that is <br/>
<a id="pl.57.26"></a><var>57.26</var>not duty-related if the disability is not duty-related;<br/>
<a id="pl.57.27"></a><var>57.27</var>(3) has credit for at least one-half year of allowable service with the current public <br/>
<a id="pl.57.28"></a><var>57.28</var>safety employee retirement plan before the commencement of the disability; and<br/>
<a id="pl.57.29"></a><var>57.29</var>(4) was not receiving a retirement annuity or disability benefit from any covered <br/>
<a id="pl.57.30"></a><var>57.30</var>public safety employee retirement plan at the time of the commencement of the disability.<br/>
<a id="pl.57.31"></a><var>57.31</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.1.72.0"></a><a id="pl.57.32"></a><var>57.32</var>    Sec. 72. Minnesota Statutes 2008, section 356.302, subdivision 5, is amended to read:<br/>
<a id="pl.58.1"></a><var>58.1</var>    Subd. 5. <b>General and public safety plan eligibility requirements.</b> A disabled <br/>
<a id="pl.58.2"></a><var>58.2</var>member of a covered retirement plan who has credit for allowable service in a combination <br/>
<a id="pl.58.3"></a><var>58.3</var>of both a public safety employee retirement plan and general employee retirement plan <br/>
<a id="pl.58.4"></a><var>58.4</var>must meet the qualifying requirements in subdivisions 3 and 4 to receive a combined <br/>
<a id="pl.58.5"></a><var>58.5</var>service disability benefit from the applicable general employee and public safety <br/>
<a id="pl.58.6"></a><var>58.6</var>employee retirement plans, except that the person need only be a member of a covered <br/>
<a id="pl.58.7"></a><var>58.7</var>retirement plan at the time of the commencement of the disability, that the person must <br/>
<a id="pl.58.8"></a><var>58.8</var>have allowable service credit for the applicable retirement plan with the longest service <br/>
<a id="pl.58.9"></a><var>58.9</var>credit eligibility requirement for the receipt of a disability benefit, and that the minimum <br/>
<a id="pl.58.10"></a><var>58.10</var>allowable service requirements of subdivisions 3, clauses (3) and (5), and 4, clauses (3) <br/>
<a id="pl.58.11"></a><var>58.11</var>and (4), may be met in any combination of covered retirement plans.<br/>
<a id="pl.58.12"></a><var>58.12</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.1.73.0"></a><a id="pl.58.13"></a><var>58.13</var>    Sec. 73. Minnesota Statutes 2008, section 356.303, subdivision 2, is amended to read:<br/>
<a id="pl.58.14"></a><var>58.14</var>    Subd. 2. <b>Entitlement; eligibility.</b> Notwithstanding any provision of law to the <br/>
<a id="pl.58.15"></a><var>58.15</var>contrary governing a covered retirement plan, a person who is the survivor of a deceased <br/>
<a id="pl.58.16"></a><var>58.16</var>member of a covered retirement plan may receive a combined service survivor benefit <br/>
<a id="pl.58.17"></a><var>58.17</var>from each covered retirement plan in which the deceased member had credit for at least <br/>
<a id="pl.58.18"></a><var>58.18</var>one-half year of allowable service if the deceased member:<br/>
<a id="pl.58.19"></a><var>58.19</var>(1) had credit for sufficient allowable service in any combination of covered <br/>
<a id="pl.58.20"></a><var>58.20</var>retirement plans to meet any the minimum allowable service credit requirement of the <br/>
<a id="pl.58.21"></a><var>58.21</var>applicable covered retirement fund with the longest allowable service credit requirement <br/>
<a id="pl.58.22"></a><var>58.22</var>for qualification for a survivor benefit or annuity;<br/>
<a id="pl.58.23"></a><var>58.23</var>(2) had credit for at least one-half year of allowable service with the most recent <br/>
<a id="pl.58.24"></a><var>58.24</var>covered retirement plan before the date of death and was an active member of that covered <br/>
<a id="pl.58.25"></a><var>58.25</var>retirement plan on the date of death; and<br/>
<a id="pl.58.26"></a><var>58.26</var>(3) was not receiving a retirement annuity from any covered retirement plan on the <br/>
<a id="pl.58.27"></a><var>58.27</var>date of death.<br/>
<a id="pl.58.28"></a><var>58.28</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.1.74.0"></a><a id="pl.58.29"></a><var>58.29</var>    Sec. 74. Minnesota Statutes 2008, section 356.315, subdivision 5, is amended to read:<br/>
<a id="pl.58.30"></a><var>58.30</var>    Subd. 5. <b>Correctional plan members.</b> The applicable benefit accrual rate is 2.4 <br/>
<a id="pl.58.31"></a><var>58.31</var>percent if employed as a correctional state employee before July 1, 2010, or 2.2 percent if <br/>
<a id="pl.58.32"></a><var>58.32</var>employed as a correctional state employee after June 30, 2010.<br/>
<a id="pl.58.33"></a><var>58.33</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.1.75.0"></a><a id="pl.59.1"></a><var>59.1</var>    Sec. 75. Minnesota Statutes 2009 Supplement, section 356.415, subdivision 1, is <br/>
<a id="pl.59.2"></a><var>59.2</var>amended to read:<br/>
<a id="pl.59.3"></a><var>59.3</var>    Subdivision 1. <b>Annual postretirement adjustments</b><b>; generally</b><b>.</b> (a) Except as <br/>
<a id="pl.59.4"></a><var>59.4</var>otherwise provided in subdivision 1a, 1b, 1c, or 1d, retirement annuity, disability benefit, <br/>
<a id="pl.59.5"></a><var>59.5</var>or survivor benefit recipients of a covered retirement plan are entitled to a postretirement <br/>
<a id="pl.59.6"></a><var>59.6</var>adjustment annually on January 1, as follows:<br/>
<a id="pl.59.7"></a><var>59.7</var>(1) a postretirement increase of 2.5 percent must be applied each year, effective <br/>
<a id="pl.59.8"></a><var>59.8</var>January 1, to the monthly annuity or benefit of each annuitant or benefit recipient who has <br/>
<a id="pl.59.9"></a><var>59.9</var>been receiving an annuity or a benefit for at least 12 full months prior to the January 1 <br/>
<a id="pl.59.10"></a><var>59.10</var>increase; and<br/>
<a id="pl.59.11"></a><var>59.11</var>(2) for each annuitant or benefit recipient who has been receiving an annuity or a <br/>
<a id="pl.59.12"></a><var>59.12</var>benefit amount for at least one full month, an annual postretirement increase of 1/12 of 2.5 <br/>
<a id="pl.59.13"></a><var>59.13</var>percent for each month that the person has been receiving an annuity or benefit must be <br/>
<a id="pl.59.14"></a><var>59.14</var>applied, effective on January 1 following the calendar year in which the person has been <br/>
<a id="pl.59.15"></a><var>59.15</var>retired for less than 12 months.<br/>
<a id="pl.59.16"></a><var>59.16</var>(b) The increases provided by this section subdivision commence on January 1, 2010.<br/>
<a id="pl.59.17"></a><var>59.17</var>(c) An increase in annuity or benefit payments under this section must be made <br/>
<a id="pl.59.18"></a><var>59.18</var>automatically unless written notice is filed by the annuitant or benefit recipient with the <br/>
<a id="pl.59.19"></a><var>59.19</var>executive director of the covered retirement plan requesting that the increase not be made.<br/>
<a id="pl.59.20"></a><var>59.20</var>(d) The retirement annuity payable to a person who retires before becoming eligible <br/>
<a id="pl.59.21"></a><var>59.21</var>for Social Security benefits and who has elected the optional payment as provided in <br/>
<a id="pl.59.22"></a><var>59.22</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.59.23"></a><var>59.23</var>retirement annuity and a life retirement annuity for the purposes of any postretirement <br/>
<a id="pl.59.24"></a><var>59.24</var>adjustment. The period certain retirement annuity plus the life retirement annuity must be <br/>
<a id="pl.59.25"></a><var>59.25</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.59.26"></a><var>59.26</var>or normal retirement age, as selected by the member at retirement, for an annuity amount <br/>
<a id="pl.59.27"></a><var>59.27</var>payable under section 
<statute_ref>354.35</statute_ref>. A postretirement adjustment granted on the period certain <br/>
<a id="pl.59.28"></a><var>59.28</var>retirement annuity must terminate when the period certain retirement annuity terminates.<br/>
<a id="pl.59.29"></a><var>59.29</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.1.76.0"></a><a id="pl.59.30"></a><var>59.30</var>    Sec. 76. Minnesota Statutes 2009 Supplement, section 356.415, is amended by adding <br/>
<a id="pl.59.31"></a><var>59.31</var>a subdivision to read:<br/>
<a id="pl.59.32"></a><var>59.32</var>    Subd. 1a. <b>Annual postretirement adjustments; Minnesota State Retirement </b><br/>
<a id="pl.59.33"></a><var>59.33</var><b>System plans.</b> (a) Retirement annuity, disability benefit, or survivor benefit recipients <br/>
<a id="pl.59.34"></a><var>59.34</var>of the legislators retirement plan, the general state employees retirement plan, the <br/>
<a id="pl.59.35"></a><var>59.35</var>correctional state employees retirement plan, the State Patrol retirement plan, the elected <br/>
<a id="pl.60.1"></a><var>60.1</var>state officers retirement plan, the unclassified state employees retirement program, and the <br/>
<a id="pl.60.2"></a><var>60.2</var>judges retirement plan are entitled to a postretirement adjustment annually on January <br/>
<a id="pl.60.3"></a><var>60.3</var>1, as follows:<br/>
<a id="pl.60.4"></a><var>60.4</var>(1) a postretirement increase of two percent must be applied each year, effective on <br/>
<a id="pl.60.5"></a><var>60.5</var>January 1, to the monthly annuity or benefit of each annuitant or benefit recipient who <br/>
<a id="pl.60.6"></a><var>60.6</var>has been receiving an annuity or a benefit for at least 18 full months before the January 1 <br/>
<a id="pl.60.7"></a><var>60.7</var>increase; and<br/>
<a id="pl.60.8"></a><var>60.8</var>(2) for each annuitant or benefit recipient who has been receiving an annuity or <br/>
<a id="pl.60.9"></a><var>60.9</var>a benefit for at least six full months, an annual postretirement increase of 1/12 of two <br/>
<a id="pl.60.10"></a><var>60.10</var>percent for each month that the person has been receiving an annuity or benefit must be <br/>
<a id="pl.60.11"></a><var>60.11</var>applied, effective January 1, following the calendar year in which the person has been <br/>
<a id="pl.60.12"></a><var>60.12</var>retired for at least six months, but has been retired for less than 18 months.<br/>
<a id="pl.60.13"></a><var>60.13</var>(b) The increases provided by this subdivision commence on January 1, 2011. <br/>
<a id="pl.60.14"></a><var>60.14</var>Increases under this subdivision for the general state employees retirement plan, the <br/>
<a id="pl.60.15"></a><var>60.15</var>correctional state employees retirement plan, the State Patrol retirement plan, or the judges <br/>
<a id="pl.60.16"></a><var>60.16</var>retirement plan terminate on December 31 of the calendar year in which the actuarial <br/>
<a id="pl.60.17"></a><var>60.17</var>valuation prepared by the approved actuary under sections 356.214 and 356.215 and the <br/>
<a id="pl.60.18"></a><var>60.18</var>standards for actuarial work promulgated by the Legislative Commission on Pensions <br/>
<a id="pl.60.19"></a><var>60.19</var>and Retirement indicates that the market value of assets of the retirement plan equals or <br/>
<a id="pl.60.20"></a><var>60.20</var>exceeds 90 percent of the actuarial accrued liability of the retirement plan and increases <br/>
<a id="pl.60.21"></a><var>60.21</var>under subdivision 1 recommence after that date. Increases under this subdivision for <br/>
<a id="pl.60.22"></a><var>60.22</var>the legislators retirement plan or the elected state officers retirement plan terminate <br/>
<a id="pl.60.23"></a><var>60.23</var>on December 31 of the calendar year in which the actuarial valuation prepared by the <br/>
<a id="pl.60.24"></a><var>60.24</var>approved actuary under sections 356.214 and 356.215 and the standards for actuarial work <br/>
<a id="pl.60.25"></a><var>60.25</var>promulgated by the Legislative Commission on Pensions and Retirement indicates that the <br/>
<a id="pl.60.26"></a><var>60.26</var>market value of assets of the general state employees retirement plan equals or exceeds <br/>
<a id="pl.60.27"></a><var>60.27</var>90 percent of the actuarial accrued liability of the retirement plan and increases under <br/>
<a id="pl.60.28"></a><var>60.28</var>subdivision 1 recommence after that date.<br/>
<a id="pl.60.29"></a><var>60.29</var>(c) An increase in annuity or benefit payments under this subdivision must be made <br/>
<a id="pl.60.30"></a><var>60.30</var>automatically unless written notice is filed by the annuitant or benefit recipient with the <br/>
<a id="pl.60.31"></a><var>60.31</var>executive director of the applicable covered retirement plan requesting that the increase <br/>
<a id="pl.60.32"></a><var>60.32</var>not be made.<br/>
<a id="pl.60.33"></a><var>60.33</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.1.77.0"></a><a id="pl.60.34"></a><var>60.34</var>    Sec. 77. Minnesota Statutes 2009 Supplement, section 356.415, is amended by adding <br/>
<a id="pl.60.35"></a><var>60.35</var>a subdivision to read:<br/>
<a id="pl.61.1"></a><var>61.1</var>    Subd. 1b. <b>Annual postretirement adjustments; PERA; general employees </b><br/>
<a id="pl.61.2"></a><var>61.2</var><b>retirement plan and local government correctional retirement plan.</b> (a) Retirement <br/>
<a id="pl.61.3"></a><var>61.3</var>annuity, disability benefit, or survivor benefit recipients of the general employees <br/>
<a id="pl.61.4"></a><var>61.4</var>retirement plan of the Public Employees Retirement Association and the local government <br/>
<a id="pl.61.5"></a><var>61.5</var>correctional service retirement plan are entitled to a postretirement adjustment annually <br/>
<a id="pl.61.6"></a><var>61.6</var>on January 1, as follows:<br/>
<a id="pl.61.7"></a><var>61.7</var>(1) for January 1, 2011, and each successive January 1 until funding stability is <br/>
<a id="pl.61.8"></a><var>61.8</var>restored for the applicable retirement plan, a postretirement increase of one percent must <br/>
<a id="pl.61.9"></a><var>61.9</var>be applied each year, effective on January 1, to the monthly annuity or benefit amount of <br/>
<a id="pl.61.10"></a><var>61.10</var>each annuitant or benefit recipient who has been receiving an annuity or benefit for at least <br/>
<a id="pl.61.11"></a><var>61.11</var>12 full months as of the current June 30; <br/>
<a id="pl.61.12"></a><var>61.12</var>(2) for January 1, 2011, and each successive January 1 until funding stability is <br/>
<a id="pl.61.13"></a><var>61.13</var>restored for the applicable retirement plan, for each annuitant or benefit recipient who has <br/>
<a id="pl.61.14"></a><var>61.14</var>been receiving an annuity or a benefit for at least one full month, but less than 12 full <br/>
<a id="pl.61.15"></a><var>61.15</var>months as of the current June 30, an annual postretirement increase of 1/12 of one percent <br/>
<a id="pl.61.16"></a><var>61.16</var>for each month the person has been receiving an annuity or benefit must be applied;<br/>
<a id="pl.61.17"></a><var>61.17</var>(3) for each January 1 following the restoration of funding stability for the applicable <br/>
<a id="pl.61.18"></a><var>61.18</var>retirement plan, a postretirement increase of 2.5 percent must be applied each year, <br/>
<a id="pl.61.19"></a><var>61.19</var>effective January 1, to the monthly annuity or benefit amount of each annuitant or benefit <br/>
<a id="pl.61.20"></a><var>61.20</var>recipient who has been receiving an annuity or benefit for at least 12 full months as of <br/>
<a id="pl.61.21"></a><var>61.21</var>the current June 30; and<br/>
<a id="pl.61.22"></a><var>61.22</var>(4) for each January 1 following restoration of funding stability for the applicable <br/>
<a id="pl.61.23"></a><var>61.23</var>retirement plan, for each annuity or benefit recipient who has been receiving an annuity or <br/>
<a id="pl.61.24"></a><var>61.24</var>a benefit for at least one full month, but less than 12 full months as of the current June <br/>
<a id="pl.61.25"></a><var>61.25</var>30, an annual postretirement increase of 1/12 of 2.5 percent for each month the person <br/>
<a id="pl.61.26"></a><var>61.26</var>has been receiving an annuity or benefit must be applied.<br/>
<a id="pl.61.27"></a><var>61.27</var>(b) Funding stability is restored when the market value of assets of the applicable <br/>
<a id="pl.61.28"></a><var>61.28</var>retirement plan equals or exceeds 90 percent of the actuarial accrued liabilities of the <br/>
<a id="pl.61.29"></a><var>61.29</var>applicable plan in the most recent prior actuarial valuation prepared under section 356.215 <br/>
<a id="pl.61.30"></a><var>61.30</var>and the standards for actuarial work by the approved actuary retained by the Public <br/>
<a id="pl.61.31"></a><var>61.31</var>Employees Retirement Association under section 356.214.<br/>
<a id="pl.61.32"></a><var>61.32</var>(c) If, after applying the increase as provided for in paragraph (a), clauses (3) <br/>
<a id="pl.61.33"></a><var>61.33</var>and (4), the market value of the applicable retirement plan is determined in the next <br/>
<a id="pl.61.34"></a><var>61.34</var>subsequent actuarial valuation prepared under section 356.215 to be less than 90 percent <br/>
<a id="pl.61.35"></a><var>61.35</var>of the actuarial accrued liability of any of the applicable Public Employees Retirement <br/>
<a id="pl.62.1"></a><var>62.1</var>Association plans, the increase provided in paragraph (a), clauses (1) and (2), are to be <br/>
<a id="pl.62.2"></a><var>62.2</var>applied as of the next successive January until funding stability is again restored.<br/>
<a id="pl.62.3"></a><var>62.3</var>(d) An increase in annuity or benefit payments under this section must be made <br/>
<a id="pl.62.4"></a><var>62.4</var>automatically unless written notice is filed by the annuitant or benefit recipient with the <br/>
<a id="pl.62.5"></a><var>62.5</var>executive director of the Public Employees Retirement Association requesting that the <br/>
<a id="pl.62.6"></a><var>62.6</var>increase not be made.<br/>
<a id="pl.62.7"></a><var>62.7</var>(e) The retirement annuity payable to a person who retires before becoming eligible <br/>
<a id="pl.62.8"></a><var>62.8</var>for Social Security benefits and who has elected the optional payment, as provided in <br/>
<a id="pl.62.9"></a><var>62.9</var>section 353.29, subdivision 6, must be treated as the sum of a period-certain retirement <br/>
<a id="pl.62.10"></a><var>62.10</var>annuity and a life retirement annuity for the purposes of any postretirement adjustment. <br/>
<a id="pl.62.11"></a><var>62.11</var>The period-certain retirement annuity plus the life retirement annuity must be the <br/>
<a id="pl.62.12"></a><var>62.12</var>annuity amount payable until age 62 for section 353.29, subdivision 6. A postretirement <br/>
<a id="pl.62.13"></a><var>62.13</var>adjustment granted on the period-certain retirement annuity must terminate when the <br/>
<a id="pl.62.14"></a><var>62.14</var>period-certain retirement annuity terminates.<br/>
<a id="pl.62.15"></a><var>62.15</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.1.78.0"></a><a id="pl.62.16"></a><var>62.16</var>    Sec. 78. Minnesota Statutes 2009 Supplement, section 356.415, is amended by adding <br/>
<a id="pl.62.17"></a><var>62.17</var>a subdivision to read:<br/>
<a id="pl.62.18"></a><var>62.18</var>    Subd. 1c. <b>Annual postretirement adjustments; PERA-P&amp;F.</b> (a) Retirement <br/>
<a id="pl.62.19"></a><var>62.19</var>annuity, disability benefit, or survivor benefit recipients of the public employees police <br/>
<a id="pl.62.20"></a><var>62.20</var>and fire retirement plan are entitled to a postretirement adjustment annually on January <br/>
<a id="pl.62.21"></a><var>62.21</var>1, as follows:<br/>
<a id="pl.62.22"></a><var>62.22</var>(1) for January 1, 2011, and for January 1, 2012, for each annuitant or benefit <br/>
<a id="pl.62.23"></a><var>62.23</var>recipient who has been receiving the annuity or benefit for at least 12 full months as of the <br/>
<a id="pl.62.24"></a><var>62.24</var>immediate preceding June 30, an amount equal to one percent in each year;<br/>
<a id="pl.62.25"></a><var>62.25</var>(2) for January 1, 2011, and for January 1, 2012, for each annuitant or benefit <br/>
<a id="pl.62.26"></a><var>62.26</var>recipient who has been receiving the annuity or benefit for at least one full month as of the <br/>
<a id="pl.62.27"></a><var>62.27</var>immediate preceding June 30, an amount equal to 1/12 of one percent in each year;<br/>
<a id="pl.62.28"></a><var>62.28</var>(3) for January 1, 2013, and each successive January 1 that follows the loss of <br/>
<a id="pl.62.29"></a><var>62.29</var>funding stability as defined under paragraph (b) until funding stability as defined under <br/>
<a id="pl.62.30"></a><var>62.30</var>paragraph (b) is again restored, for each annuitant or benefit recipient who has been <br/>
<a id="pl.62.31"></a><var>62.31</var>receiving the annuity or benefit for at least 12 full months as of the immediate preceding <br/>
<a id="pl.62.32"></a><var>62.32</var>June 30, an amount equal to the percentage increase in the Consumer Price Index for <br/>
<a id="pl.62.33"></a><var>62.33</var>urban wage earners and clerical workers all items index published by the Bureau of Labor <br/>
<a id="pl.62.34"></a><var>62.34</var>Statistics of the United States Department of Labor between the immediate preceding June <br/>
<a id="pl.62.35"></a><var>62.35</var>30 and the June 30 occurring 12 months previous, but not to exceed 1.5 percent;<br/>
<a id="pl.63.1"></a><var>63.1</var>(4) for January 1, 2013, and each successive January 1 that follows the loss of <br/>
<a id="pl.63.2"></a><var>63.2</var>funding stability as defined under paragraph (b) until funding stability as defined under <br/>
<a id="pl.63.3"></a><var>63.3</var>paragraph (b) is again restored, for each annuitant or benefit recipient who has been <br/>
<a id="pl.63.4"></a><var>63.4</var>receiving the annuity or benefit for at least one full month as of the immediate preceding <br/>
<a id="pl.63.5"></a><var>63.5</var>June 30, an amount equal to 1/12 of the percentage increase in the Consumer Price Index <br/>
<a id="pl.63.6"></a><var>63.6</var>for urban wage earners and clerical workers all items index published by the Bureau <br/>
<a id="pl.63.7"></a><var>63.7</var>of Labor Statistics of the United States Department of Labor between the immediate <br/>
<a id="pl.63.8"></a><var>63.8</var>preceding June 30 and the June 30 occurring 12 months previous for each full month of <br/>
<a id="pl.63.9"></a><var>63.9</var>annuity or benefit receipt, but not to exceed 1/12 of 1.5 percent for each full month of <br/>
<a id="pl.63.10"></a><var>63.10</var>annuity or benefit receipt;<br/>
<a id="pl.63.11"></a><var>63.11</var>(5) for each January 1 following the restoration of funding stability as defined under <br/>
<a id="pl.63.12"></a><var>63.12</var>paragraph (b) and during the continuation of funding stability as defined under paragraph <br/>
<a id="pl.63.13"></a><var>63.13</var>(b), for each annuitant or benefit recipient who has been receiving the annuity or benefit <br/>
<a id="pl.63.14"></a><var>63.14</var>for at least 12 full months as of the immediate preceding June 30, an amount equal to the <br/>
<a id="pl.63.15"></a><var>63.15</var>percentage increase in the Consumer Price Index for urban wage earners and clerical <br/>
<a id="pl.63.16"></a><var>63.16</var>workers all items index published by the Bureau of Labor Statistics of the United States <br/>
<a id="pl.63.17"></a><var>63.17</var>Department of Labor between the immediate preceding June 30 and the June 30 occurring <br/>
<a id="pl.63.18"></a><var>63.18</var>12 months previous, but not to exceed 2.5 percent; and<br/>
<a id="pl.63.19"></a><var>63.19</var>(6) for each January 1 following the restoration of funding stability as defined under <br/>
<a id="pl.63.20"></a><var>63.20</var>paragraph (b) and during the continuation of funding stability as defined under paragraph <br/>
<a id="pl.63.21"></a><var>63.21</var>(b), for each annuitant or benefit recipient who has been receiving the annuity or benefit <br/>
<a id="pl.63.22"></a><var>63.22</var>for at least one full month as of the immediate preceding June 30, an amount equal to <br/>
<a id="pl.63.23"></a><var>63.23</var>1/12 of the percentage increase in the Consumer Price Index for urban wage earners and <br/>
<a id="pl.63.24"></a><var>63.24</var>clerical workers all items index published by the Bureau of Labor Statistics of the United <br/>
<a id="pl.63.25"></a><var>63.25</var>States Department of Labor between the immediate preceding June 30 and the June 30 <br/>
<a id="pl.63.26"></a><var>63.26</var>occurring 12 months previous for each full month of annuity or benefit receipt, but not to <br/>
<a id="pl.63.27"></a><var>63.27</var>exceed 1/12 of 2.5 percent for each full month of annuity or benefit receipt.<br/>
<a id="pl.63.28"></a><var>63.28</var>(b) Funding stability is restored when the market value of assets of the public <br/>
<a id="pl.63.29"></a><var>63.29</var>employees police and fire retirement plan equals or exceeds 90 percent of the actuarial <br/>
<a id="pl.63.30"></a><var>63.30</var>accrued liabilities of the applicable plan in the most recent prior actuarial valuation <br/>
<a id="pl.63.31"></a><var>63.31</var>prepared under section 356.215 and under the standards for actuarial work of the <br/>
<a id="pl.63.32"></a><var>63.32</var>Legislative Commission on Pensions and Retirement by the approved actuary retained by <br/>
<a id="pl.63.33"></a><var>63.33</var>the Public Employees Retirement Association under section 356.214.<br/>
<a id="pl.63.34"></a><var>63.34</var>(c) An increase in annuity or benefit payments under this section must be made <br/>
<a id="pl.63.35"></a><var>63.35</var>automatically unless written notice is filed by the annuitant or benefit recipient with the <br/>
<a id="pl.64.1"></a><var>64.1</var>executive director of the Public Employees Retirement Association requesting that the <br/>
<a id="pl.64.2"></a><var>64.2</var>increase not be made.<br/>
<a id="pl.64.3"></a><var>64.3</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.1.79.0"></a><a id="pl.64.4"></a><var>64.4</var>    Sec. 79. Minnesota Statutes 2009 Supplement, section 356.415, is amended by adding <br/>
<a id="pl.64.5"></a><var>64.5</var>a subdivision to read:<br/>
<a id="pl.64.6"></a><var>64.6</var>    Subd. 1d. <b>Teachers Retirement Association annual postretirement adjustments.</b><br/>
<a id="pl.64.7"></a><var>64.7</var>(a) Retirement annuity, disability benefit, or survivor benefit recipients of the Teachers <br/>
<a id="pl.64.8"></a><var>64.8</var>Retirement Association are entitled to a postretirement adjustment annually on January <br/>
<a id="pl.64.9"></a><var>64.9</var>1, as follows:<br/>
<a id="pl.64.10"></a><var>64.10</var>(1) for January 1, 2011, and January 1, 2012, no postretirement increase is payable;<br/>
<a id="pl.64.11"></a><var>64.11</var>(2) for January 1, 2013, and each successive January 1 until funding stability is <br/>
<a id="pl.64.12"></a><var>64.12</var>restored, a postretirement increase of two percent must be applied each year, effective on <br/>
<a id="pl.64.13"></a><var>64.13</var>January 1, to the monthly annuity or benefit amount of each annuitant or benefit recipient <br/>
<a id="pl.64.14"></a><var>64.14</var>who has been receiving an annuity or a benefit for at least 18 full months prior to the <br/>
<a id="pl.64.15"></a><var>64.15</var>January 1 increase;<br/>
<a id="pl.64.16"></a><var>64.16</var>(3) for January 1, 2013, and each successive January 1 until funding stability is <br/>
<a id="pl.64.17"></a><var>64.17</var>restored, for each annuitant or benefit recipient who has been receiving an annuity or <br/>
<a id="pl.64.18"></a><var>64.18</var>a benefit for at least six full months, an annual postretirement increase of 1/12 of two <br/>
<a id="pl.64.19"></a><var>64.19</var>percent for each month the person has been receiving an annuity or benefit must be <br/>
<a id="pl.64.20"></a><var>64.20</var>applied, effective January 1, following the year in which the person has been retired <br/>
<a id="pl.64.21"></a><var>64.21</var>for less than 12 months;<br/>
<a id="pl.64.22"></a><var>64.22</var>(4) for each January 1 following the restoration of funding stability, a postretirement <br/>
<a id="pl.64.23"></a><var>64.23</var>increase of 2.5 percent must be applied each year, effective January 1, to the monthly <br/>
<a id="pl.64.24"></a><var>64.24</var>annuity or benefit amount of each annuitant or benefit recipient who has been receiving an <br/>
<a id="pl.64.25"></a><var>64.25</var>annuity or a benefit for at least 18 full months prior to the January 1 increase; and<br/>
<a id="pl.64.26"></a><var>64.26</var>(5) for each January 1 following the restoration of funding stability, for each <br/>
<a id="pl.64.27"></a><var>64.27</var>annuitant or benefit recipient who has been receiving an annuity or a benefit for at least <br/>
<a id="pl.64.28"></a><var>64.28</var>six full months, an annual postretirement increase of 1/12 of 2.5 percent for each month <br/>
<a id="pl.64.29"></a><var>64.29</var>the person has been receiving an annuity or benefit must be applied, effective January 1, <br/>
<a id="pl.64.30"></a><var>64.30</var>following the year in which the person has been retired for less than 12 months.<br/>
<a id="pl.64.31"></a><var>64.31</var>(b) Funding stability is restored when the market value of assets of the Teachers <br/>
<a id="pl.64.32"></a><var>64.32</var>Retirement Association equals or exceeds 90 percent of the actuarial accrued liabilities of <br/>
<a id="pl.64.33"></a><var>64.33</var>the Teachers Retirement Association in the most recent prior actuarial valuation prepared <br/>
<a id="pl.64.34"></a><var>64.34</var>under section 356.215 and the standards for actuarial work by the approved actuary <br/>
<a id="pl.64.35"></a><var>64.35</var>retained by the Teachers Retirement Association under section 356.214.<br/>
<a id="pl.65.1"></a><var>65.1</var>(c) An increase in annuity or benefit payments under this section must be made <br/>
<a id="pl.65.2"></a><var>65.2</var>automatically unless written notice is filed by the annuitant or benefit recipient with the <br/>
<a id="pl.65.3"></a><var>65.3</var>executive director of the Teachers Retirement Association requesting that the increase <br/>
<a id="pl.65.4"></a><var>65.4</var>not be made.<br/>
<a id="pl.65.5"></a><var>65.5</var>(d) The retirement annuity payable to a person who retires before becoming eligible <br/>
<a id="pl.65.6"></a><var>65.6</var>for Social Security benefits and who has elected the optional payment as provided in <br/>
<a id="pl.65.7"></a><var>65.7</var>section 354.35 must be treated as the sum of a period-certain retirement annuity and a life <br/>
<a id="pl.65.8"></a><var>65.8</var>retirement annuity for the purposes of any postretirement adjustment. The period-certain <br/>
<a id="pl.65.9"></a><var>65.9</var>retirement annuity plus the life retirement annuity must be the annuity amount payable <br/>
<a id="pl.65.10"></a><var>65.10</var>until age 62, 65, or normal retirement age, as selected by the member at retirement, for an <br/>
<a id="pl.65.11"></a><var>65.11</var>annuity amount payable under section 354.35. A postretirement adjustment granted on <br/>
<a id="pl.65.12"></a><var>65.12</var>the period-certain retirement annuity must terminate when the period-certain retirement <br/>
<a id="pl.65.13"></a><var>65.13</var>annuity terminates.<br/>
<a id="pl.65.14"></a><var>65.14</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.1.80.0"></a><a id="pl.65.15"></a><var>65.15</var>    Sec. 80. Minnesota Statutes 2008, section 356.47, subdivision 3, is amended to read:<br/>
<a id="pl.65.16"></a><var>65.16</var>    Subd. 3. <b>Payment.</b> (a) Beginning one year after the reemployment withholding <br/>
<a id="pl.65.17"></a><var>65.17</var>period ends relating to the reemployment that gave rise to the limitation, and the filing of a <br/>
<a id="pl.65.18"></a><var>65.18</var>written application, the retired member is entitled to the payment, in a lump sum, of the <br/>
<a id="pl.65.19"></a><var>65.19</var>value of the person's amount under subdivision 2, plus annual compound interest at. For <br/>
<a id="pl.65.20"></a><var>65.20</var>the general state employees retirement plan, the correctional state employees retirement <br/>
<a id="pl.65.21"></a><var>65.21</var>plan, the general employees retirement plan of the Public Employees Retirement <br/>
<a id="pl.65.22"></a><var>65.22</var>Association, the public employees police and fire retirement plan, the local government <br/>
<a id="pl.65.23"></a><var>65.23</var>correctional employees retirement plan, and the teachers retirement plan, the annual <br/>
<a id="pl.65.24"></a><var>65.24</var>interest rate is six percent from the date on which the amount was deducted from the <br/>
<a id="pl.65.25"></a><var>65.25</var>retirement annuity to the date of payment or until January 1, 2011, whichever is earlier, and <br/>
<a id="pl.65.26"></a><var>65.26</var>no interest after January 1, 2011. For the Duluth Teachers Retirement Fund Association, <br/>
<a id="pl.65.27"></a><var>65.27</var>the annual interest is six percent from the date on which the amount was deducted from the <br/>
<a id="pl.65.28"></a><var>65.28</var>retirement annuity to the date of payment or until June 30, 2010, whichever is earlier, and <br/>
<a id="pl.65.29"></a><var>65.29</var>no interest after June 30, 2010. For the St. Paul Teachers Retirement Fund Association, <br/>
<a id="pl.65.30"></a><var>65.30</var>the annual interest is the compound annual rate of six percent from the date that the <br/>
<a id="pl.65.31"></a><var>65.31</var>amount was deducted from the retirement annuity to the date of payment.<br/>
<a id="pl.65.32"></a><var>65.32</var>    (b) The written application must be on a form prescribed by the chief administrative <br/>
<a id="pl.65.33"></a><var>65.33</var>officer of the applicable retirement plan.<br/>
<a id="pl.65.34"></a><var>65.34</var>    (c) If the retired member dies before the payment provided for in paragraph (a) is <br/>
<a id="pl.65.35"></a><var>65.35</var>made, the amount is payable, upon written application, to the deceased person's surviving <br/>
<a id="pl.66.1"></a><var>66.1</var>spouse, or if none, to the deceased person's designated beneficiary, or if none, to the <br/>
<a id="pl.66.2"></a><var>66.2</var>deceased person's estate.<br/>
<a id="pl.66.3"></a><var>66.3</var>    (d) In lieu of the direct payment of the person's amount under subdivision 2, on <br/>
<a id="pl.66.4"></a><var>66.4</var>or after the payment date under paragraph (a), if the federal Internal Revenue Code so <br/>
<a id="pl.66.5"></a><var>66.5</var>permits, the retired member may elect to have all or any portion of the payment amount <br/>
<a id="pl.66.6"></a><var>66.6</var>under this section paid in the form of a direct rollover to an eligible retirement plan as <br/>
<a id="pl.66.7"></a><var>66.7</var>defined in section 402(c) of the federal Internal Revenue Code that is specified by the <br/>
<a id="pl.66.8"></a><var>66.8</var>retired member. If the retired member dies with a balance remaining payable under this <br/>
<a id="pl.66.9"></a><var>66.9</var>section, the surviving spouse of the retired member, or if none, the deceased person's <br/>
<a id="pl.66.10"></a><var>66.10</var>designated beneficiary, or if none, the administrator of the deceased person's estate may <br/>
<a id="pl.66.11"></a><var>66.11</var>elect a direct rollover under this paragraph.<br/>
<a id="pl.66.12"></a><var>66.12</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.1.81.0"></a><a id="pl.66.13"></a><var>66.13</var>    Sec. 81. Minnesota Statutes 2009 Supplement, section 423A.02, subdivision 3, is <br/>
<a id="pl.66.14"></a><var>66.14</var>amended to read:<br/>
<a id="pl.66.15"></a><var>66.15</var>    Subd. 3. <b>Reallocation of amortization or supplementary amortization state </b><br/>
<a id="pl.66.16"></a><var>66.16</var><b>aid.</b> (a) Seventy percent of the difference between $5,720,000 and the current year <br/>
<a id="pl.66.17"></a><var>66.17</var>amortization aid and supplemental amortization aid distributed under subdivisions 1 <br/>
<a id="pl.66.18"></a><var>66.18</var>and 1a that is not distributed for any reason to a municipality for use by a local police <br/>
<a id="pl.66.19"></a><var>66.19</var>or salaried fire relief association must be distributed by the commissioner of revenue <br/>
<a id="pl.66.20"></a><var>66.20</var>according to this paragraph. The commissioner shall distribute 50 percent of the amounts <br/>
<a id="pl.66.21"></a><var>66.21</var>derived under this paragraph to the Teachers Retirement Association, ten percent to the <br/>
<a id="pl.66.22"></a><var>66.22</var>Duluth Teachers Retirement Fund Association, and 40 percent to the St. Paul Teachers <br/>
<a id="pl.66.23"></a><var>66.23</var>Retirement Fund Association to fund the unfunded actuarial accrued liabilities of the <br/>
<a id="pl.66.24"></a><var>66.24</var>respective funds. These payments shall be made on or before June 30 each fiscal year. If <br/>
<a id="pl.66.25"></a><var>66.25</var>the St. Paul Teachers Retirement Fund Association becomes fully funded, its eligibility <br/>
<a id="pl.66.26"></a><var>66.26</var>for this aid ceases. Amounts remaining in the undistributed balance account at the end of <br/>
<a id="pl.66.27"></a><var>66.27</var>the biennium if aid eligibility ceases cancel to the general fund.<br/>
<a id="pl.66.28"></a><var>66.28</var>    (b) In order to receive amortization and supplementary amortization aid under <br/>
<a id="pl.66.29"></a><var>66.29</var>paragraph (a), Independent School District No. 625, St. Paul, must make contributions <br/>
<a id="pl.66.30"></a><var>66.30</var>to the St. Paul Teachers Retirement Fund Association in accordance with the following <br/>
<a id="pl.66.31"></a><var>66.31</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.66.32"></a><var>66.32</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.66.33"></a><var>66.33</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.66.34"></a><var>66.34</var><br/>
</td>
<td></td>
<td>1997<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">0<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.66.35"></a><var>66.35</var><br/>
</td>
<td></td>
<td>1998<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">200,000<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.67.1"></a><var>67.1</var><br/>
</td>
<td></td>
<td>1999<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">400,000<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.67.2"></a><var>67.2</var><br/>
</td>
<td></td>
<td>2000<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">600,000<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.67.3"></a><var>67.3</var><br/>
</td>
<td></td>
<td>2001 and thereafter<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">800,000<br/>
</td>
<td></td>
</tr>
</table><a id="pl.67.4"></a><var>67.4</var>    (c) Special School District No. 1, Minneapolis, and the city of Minneapolis must <br/>
<a id="pl.67.5"></a><var>67.5</var>each make contributions to the Teachers Retirement Association in accordance with the <br/>
<a id="pl.67.6"></a><var>67.6</var>following schedule:<br/>
<table>
<col width="50px"/>
<col width="5"/>
<col width="20"/>
<col width="2.5"/>
<col width="9"/>
<col width="10"/>
<col width="2.5"/>
<col width="9"/>
<col width="7"/>
<tr>
<td><a id="pl.67.7"></a><var>67.7</var><br/>
<a id="pl.67.8"></a><var>67.8</var><br/>
</td>
<td></td>
<td valign="top">Fiscal Year<br/>
</td>
<td align="center" colspan="2" valign="top">City amount<br/>
</td>
<td></td>
<td align="center" colspan="2" valign="top">School district <br/>
                  		amount<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.67.9"></a><var>67.9</var><br/>
</td>
<td></td>
<td>1996<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">0<br/>
</td>
<td></td>
<td align="right">$<br/>
</td>
<td align="right">0<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.67.10"></a><var>67.10</var><br/>
</td>
<td></td>
<td>1997<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">0<br/>
</td>
<td></td>
<td align="right">$<br/>
</td>
<td align="right" valign="bottom">0<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.67.11"></a><var>67.11</var><br/>
</td>
<td></td>
<td>1998<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">250,000<br/>
</td>
<td></td>
<td align="right">$<br/>
</td>
<td align="right">250,000<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.67.12"></a><var>67.12</var><br/>
</td>
<td></td>
<td>1999<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">400,000<br/>
</td>
<td></td>
<td align="right">$<br/>
</td>
<td align="right">400,000<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.67.13"></a><var>67.13</var><br/>
</td>
<td></td>
<td>2000<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">550,000<br/>
</td>
<td></td>
<td align="right">$<br/>
</td>
<td align="right">550,000<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.67.14"></a><var>67.14</var><br/>
</td>
<td></td>
<td>2001<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">700,000<br/>
</td>
<td></td>
<td align="right">$<br/>
</td>
<td align="right">700,000<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.67.15"></a><var>67.15</var><br/>
</td>
<td></td>
<td>2002<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">850,000<br/>
</td>
<td></td>
<td align="right">$<br/>
</td>
<td align="right">850,000<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.67.16"></a><var>67.16</var><br/>
</td>
<td></td>
<td>2003 and thereafter<br/>
</td>
<td align="right">$<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.67.17"></a><var>67.17</var>    (d) Money contributed under paragraph (a) and either paragraph (b) or (c), as <br/>
<a id="pl.67.18"></a><var>67.18</var>applicable, must be credited to a separate account in the applicable teachers retirement <br/>
<a id="pl.67.19"></a><var>67.19</var>fund and may not be used in determining any benefit increases. The separate account <br/>
<a id="pl.67.20"></a><var>67.20</var>terminates for a fund when the aid payments to the fund under paragraph (a) cease.<br/>
<a id="pl.67.21"></a><var>67.21</var>    (e) (d) Thirty percent of the difference between $5,720,000 and the current year <br/>
<a id="pl.67.22"></a><var>67.22</var>amortization aid and supplemental amortization aid under subdivisions 1 and 1a that is not <br/>
<a id="pl.67.23"></a><var>67.23</var>distributed for any reason to a municipality for use by a local police or salaried firefighter <br/>
<a id="pl.67.24"></a><var>67.24</var>relief association must be distributed under section 
         <statute_ref>69.021, subdivision 7</statute_ref>, paragraph (d), <br/>
<a id="pl.67.25"></a><var>67.25</var>as additional funding to support a minimum fire state aid amount for volunteer firefighter <br/>
<a id="pl.67.26"></a><var>67.26</var>relief associations.<br/>
<a id="pl.67.27"></a><var>67.27</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.1.82.0"></a><a id="pl.67.28"></a><var>67.28</var>    Sec. 82. <b>LOCAL RETIREMENT FUND INVESTMENT AUTHORITIES </b><br/>
<a id="pl.67.29"></a><var>67.29</var><b>STUDY.</b><br/>
<a id="pl.67.30"></a><var>67.30</var>A study group consisting of representatives from pension plans subject to Minnesota <br/>
<a id="pl.67.31"></a><var>67.31</var>Statutes, section 356A.06, subdivision 6 or 7, shall be convened by the state auditor to <br/>
<a id="pl.67.32"></a><var>67.32</var>study investment-related provisions, authorities, and limitations under Minnesota Statutes, <br/>
<a id="pl.67.33"></a><var>67.33</var>chapter 356A, and related sections of other chapters. Administrative support for the <br/>
<a id="pl.67.34"></a><var>67.34</var>study group shall be provided by the state auditor. The study group shall prepare a <br/>
<a id="pl.67.35"></a><var>67.35</var>report to include an assessment of the effectiveness of current statutory prescriptions, <br/>
<a id="pl.67.36"></a><var>67.36</var>options for change, and recommendations for consideration by the governor and the <br/>
<a id="pl.68.1"></a><var>68.1</var>legislature during the 2011 legislative session. The report will be provided no later than <br/>
<a id="pl.68.2"></a><var>68.2</var>January 15, 2011, to the executive director of the Legislative Commission on Pensions and <br/>
<a id="pl.68.3"></a><var>68.3</var>Retirement, the chair and ranking minority caucus member of the senate State and Local <br/>
<a id="pl.68.4"></a><var>68.4</var>Government Operations and Oversight Committee, and the chair and ranking minority <br/>
<a id="pl.68.5"></a><var>68.5</var>caucus member of the house State and Local Government Operations Reform, Technology <br/>
<a id="pl.68.6"></a><var>68.6</var>and Elections Committee.<br/>
<a id="pl.68.7"></a><var>68.7</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.1.83.0"></a><a id="pl.68.8"></a><var>68.8</var>    Sec. 83. <b>BYLAW AUTHORIZATION.</b><br/>
<a id="pl.68.9"></a><var>68.9</var>Consistent with the requirements of Minnesota Statutes, section 354A.12, <br/>
<a id="pl.68.10"></a><var>68.10</var>subdivision 4, the board of the Duluth Teachers Retirement Fund Association is authorized <br/>
<a id="pl.68.11"></a><var>68.11</var>to revise the bylaws or articles of incorporation so that the requirements of this act apply <br/>
<a id="pl.68.12"></a><var>68.12</var>to the old law coordinated program.<br/>
<a id="pl.68.13"></a><var>68.13</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.1.84.0"></a><a id="pl.68.14"></a><var>68.14</var>    Sec. 84. <b> REPEALER.</b><br/>
<a id="pl.68.15"></a><var>68.15</var>Minnesota Statutes 2008, section 354A.27, subdivision 1, is repealed.<br/>
<a id="pl.68.16"></a><var>68.16</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2010.<br/>
<br/>
<a id="bill.2.0.0"></a>

<a id="bill.2.1.0"></a><a id="pl.68.19"></a><var>68.19</var>    Section 1. Minnesota Statutes 2008, section 352.01, subdivision 2a, is amended to read:<br/>
<a id="pl.68.20"></a><var>68.20</var>    Subd. 2a. <b>Included employees.</b> (a) "State employee" includes:<br/>
<a id="pl.68.21"></a><var>68.21</var>    (1) employees of the Minnesota Historical Society;<br/>
<a id="pl.68.22"></a><var>68.22</var>    (2) employees of the State Horticultural Society;<br/>
<a id="pl.68.23"></a><var>68.23</var>    (3) employees of the Minnesota Crop Improvement Association;<br/>
<a id="pl.68.24"></a><var>68.24</var>    (4) employees of the adjutant general who whose salaries are paid from federal funds <br/>
<a id="pl.68.25"></a><var>68.25</var>and who are not covered by any federal civilian employees retirement system;<br/>
<a id="pl.68.26"></a><var>68.26</var>    (5) employees of the Minnesota State Colleges and Universities who are employed <br/>
<a id="pl.68.27"></a><var>68.27</var>under the university or college activities program;<br/>
<a id="pl.68.28"></a><var>68.28</var>    (6) currently contributing employees covered by the system who are temporarily <br/>
<a id="pl.68.29"></a><var>68.29</var>employed by the legislature during a legislative session or any currently contributing <br/>
<a id="pl.68.30"></a><var>68.30</var>employee employed for any special service as defined in subdivision 2b, clause (8);<br/>
<a id="pl.69.1"></a><var>69.1</var>    (7) employees of the legislature who are appointed without a limit on the duration <br/>
<a id="pl.69.2"></a><var>69.2</var>of their employment and persons employed or designated by the legislature or by a <br/>
<a id="pl.69.3"></a><var>69.3</var>legislative committee or commission or other competent authority to conduct a special <br/>
<a id="pl.69.4"></a><var>69.4</var>inquiry, investigation, examination, or installation;<br/>
<a id="pl.69.5"></a><var>69.5</var>    (8) trainees who are employed on a full-time established training program <br/>
<a id="pl.69.6"></a><var>69.6</var>performing the duties of the classified position for which they will be eligible to receive <br/>
<a id="pl.69.7"></a><var>69.7</var>immediate appointment at the completion of the training period;<br/>
<a id="pl.69.8"></a><var>69.8</var>    (9) employees of the Minnesota Safety Council;<br/>
<a id="pl.69.9"></a><var>69.9</var>    (10) any employees who are on authorized leave of absence from the Transit <br/>
<a id="pl.69.10"></a><var>69.10</var>Operating Division of the former Metropolitan Transit Commission and who are employed <br/>
<a id="pl.69.11"></a><var>69.11</var>by the labor organization which is the exclusive bargaining agent representing employees <br/>
<a id="pl.69.12"></a><var>69.12</var>of the Transit Operating Division;<br/>
<a id="pl.69.13"></a><var>69.13</var>    (11) employees of the Metropolitan Council, Metropolitan Parks and Open Space <br/>
<a id="pl.69.14"></a><var>69.14</var>Commission, Metropolitan Sports Facilities Commission, or Metropolitan Mosquito <br/>
<a id="pl.69.15"></a><var>69.15</var>Control Commission, or Metropolitan Radio Board unless excluded under subdivision 2b <br/>
<a id="pl.69.16"></a><var>69.16</var>or are covered by another public pension fund or plan under section 
         <statute_ref>473.415, subdivision 3</statute_ref>;<br/>
<a id="pl.69.17"></a><var>69.17</var>    (12) judges of the Tax Court;<br/>
<a id="pl.69.18"></a><var>69.18</var>    (13) personnel who were employed on June 30, 1992, by the University of <br/>
<a id="pl.69.19"></a><var>69.19</var>Minnesota in the management, operation, or maintenance of its heating plant facilities, <br/>
<a id="pl.69.20"></a><var>69.20</var>whose employment transfers to an employer assuming operation of the heating plant <br/>
<a id="pl.69.21"></a><var>69.21</var>facilities, so long as the person is employed at the University of Minnesota heating plant <br/>
<a id="pl.69.22"></a><var>69.22</var>by that employer or by its successor organization;<br/>
<a id="pl.69.23"></a><var>69.23</var>    (14) personnel who are employed as seasonal help employees in the classified or <br/>
<a id="pl.69.24"></a><var>69.24</var>unclassified service employed by the Department of Revenue; <br/>
<a id="pl.69.25"></a><var>69.25</var>    (15) persons who are employed by the Department of Commerce as a peace officer <br/>
<a id="pl.69.26"></a><var>69.26</var>in the Insurance Fraud Prevention Division under section 
         <statute_ref>45.0135</statute_ref> who have attained the <br/>
<a id="pl.69.27"></a><var>69.27</var>mandatory retirement age specified in section 
         <statute_ref>43A.34, subdivision 4</statute_ref>;<br/>
<a id="pl.69.28"></a><var>69.28</var>    (16) employees of the University of Minnesota unless excluded under subdivision <br/>
<a id="pl.69.29"></a><var>69.29</var>2b, clause (3); <br/>
<a id="pl.69.30"></a><var>69.30</var>    (17) employees of the Middle Management Association whose employment began <br/>
<a id="pl.69.31"></a><var>69.31</var>after July 1, 2007, and to whom section 
         <statute_ref>352.029</statute_ref> does not apply; and<br/>
<a id="pl.69.32"></a><var>69.32</var>    (18) employees of the Minnesota Government Engineers Council to whom section <br/>
<statute_ref><a id="pl.69.33"></a><var>69.33</var>352.029
         </statute_ref> does not apply.<br/>
<a id="pl.69.34"></a><var>69.34</var>    (b) Employees specified in paragraph (a), clause (13), are included employees under <br/>
<a id="pl.69.35"></a><var>69.35</var>paragraph (a) if employer and employee contributions are made in a timely manner in the <br/>
<a id="pl.69.36"></a><var>69.36</var>amounts required by section 
         <statute_ref>352.04</statute_ref>. Employee contributions must be deducted from <br/>
<a id="pl.70.1"></a><var>70.1</var>salary. Employer contributions are the sole obligation of the employer assuming operation <br/>
<a id="pl.70.2"></a><var>70.2</var>of the University of Minnesota heating plant facilities or any successor organizations to <br/>
<a id="pl.70.3"></a><var>70.3</var>that employer.<br/>
<a id="pl.70.4"></a><var>70.4</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.2.2.0"></a><a id="pl.70.5"></a><var>70.5</var>    Sec. 2. Minnesota Statutes 2008, section 352.03, subdivision 4, is amended to read:<br/>
<a id="pl.70.6"></a><var>70.6</var>    Subd. 4. <b>Duties and powers of board of directors.</b> (a) The board shall:<br/>
<a id="pl.70.7"></a><var>70.7</var>    (1) elect a chair;<br/>
<a id="pl.70.8"></a><var>70.8</var>    (2) appoint an executive director;<br/>
<a id="pl.70.9"></a><var>70.9</var>    (3) establish rules to administer this chapter and chapters 3A, 352B, 352C, 352D, <br/>
<a id="pl.70.10"></a><var>70.10</var>and 490 and transact the business of the system, subject to the limitations of law;<br/>
<a id="pl.70.11"></a><var>70.11</var>    (4) consider and dispose of, or take any other action the board of directors deems <br/>
<a id="pl.70.12"></a><var>70.12</var>appropriate concerning, denials of applications for annuities or disability benefits under <br/>
<a id="pl.70.13"></a><var>70.13</var>this chapter, chapter 3A, 352B, 352C, 352D, or 490, and complaints of employees and <br/>
<a id="pl.70.14"></a><var>70.14</var>others pertaining to the retirement of employees and the operation of the system;<br/>
<a id="pl.70.15"></a><var>70.15</var>    (5) oversee the administration of the state deferred compensation plan established <br/>
<a id="pl.70.16"></a><var>70.16</var>in section 
         <statute_ref>352.965</statute_ref>; and<br/>
<a id="pl.70.17"></a><var>70.17</var>    (6) oversee the administration of the health care savings plan established in section <br/>
<statute_ref><a id="pl.70.18"></a><var>70.18</var>352.98
         </statute_ref>. <br/>
<a id="pl.70.19"></a><var>70.19</var>    (b) The board shall advise the director on any matters relating to the system and <br/>
<a id="pl.70.20"></a><var>70.20</var>carrying out functions and purposes of this chapter. The board's advice shall control.<br/>
<a id="pl.70.21"></a><var>70.21</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.2.3.0"></a><a id="pl.70.22"></a><var>70.22</var>    Sec. 3. Minnesota Statutes 2008, section 352.04, subdivision 9, is amended to read:<br/>
<a id="pl.70.23"></a><var>70.23</var>    Subd. 9. <b>Erroneous deductions, canceled warrants.</b> (a) Deductions taken from the <br/>
<a id="pl.70.24"></a><var>70.24</var>salary of an employee for the retirement fund in error excess of required amounts must, <br/>
<a id="pl.70.25"></a><var>70.25</var>upon discovery and verification by the department making the deduction, be refunded to <br/>
<a id="pl.70.26"></a><var>70.26</var>the employee.<br/>
<a id="pl.70.27"></a><var>70.27</var>(b) If a deduction for the retirement fund is taken from a salary warrant or check, <br/>
<a id="pl.70.28"></a><var>70.28</var>and the check is canceled or the amount of the warrant or check returned to the funds of <br/>
<a id="pl.70.29"></a><var>70.29</var>the department making the payment, the sum deducted, or the part of it required to adjust <br/>
<a id="pl.70.30"></a><var>70.30</var>the deductions, must be refunded to the department or institution if the department applies <br/>
<a id="pl.70.31"></a><var>70.31</var>for the refund on a form furnished by the director. The department's payments must <br/>
<a id="pl.70.32"></a><var>70.32</var>likewise be refunded to the department.<br/>
<a id="pl.71.1"></a><var>71.1</var>(c) Employee deductions and employer contributions taken in error may be directly <br/>
<a id="pl.71.2"></a><var>71.2</var>transferred, without interest, to another Minnesota public employee retirement plan by <br/>
<a id="pl.71.3"></a><var>71.3</var>which the employee is actually covered.<br/>
<a id="pl.71.4"></a><var>71.4</var>For purposes of this subdivision, a Minnesota public pension plan means a plan <br/>
<a id="pl.71.5"></a><var>71.5</var>specified in section 
<statute_ref>356.30, subdivision 3</statute_ref>, or the plan governed by chapter 354B. <br/>
<a id="pl.71.6"></a><var>71.6</var>(c) If erroneous employee deductions and employer contributions are caused by an <br/>
<a id="pl.71.7"></a><var>71.7</var>error in plan coverage involving the plan and any other plans specified in section 356.99, <br/>
<a id="pl.71.8"></a><var>71.8</var>that section applies. If the employee should have been covered by the plan governed by <br/>
<a id="pl.71.9"></a><var>71.9</var>chapter 352D, 353D, 354B, or 354D, the employee deductions and employer contributions <br/>
<a id="pl.71.10"></a><var>71.10</var>taken in error must be directly transferred to the applicable employee's account in the <br/>
<a id="pl.71.11"></a><var>71.11</var>correct retirement plan, with interest at the rate of 0.71 percent per month, compounded <br/>
<a id="pl.71.12"></a><var>71.12</var>annually, from the first day of the month following the month in which coverage should <br/>
<a id="pl.71.13"></a><var>71.13</var>have commenced in the correct defined contribution plan until the end of the month in <br/>
<a id="pl.71.14"></a><var>71.14</var>which the transfer occurs.<br/>
<a id="pl.71.15"></a><var>71.15</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2010.<br/>
<br/>
<a id="bill.2.4.0"></a><a id="pl.71.16"></a><var>71.16</var>    Sec. 4. Minnesota Statutes 2008, section 352.115, subdivision 10, is amended to read:<br/>
<a id="pl.71.17"></a><var>71.17</var>    Subd. 10. <b>Reemployment of annuitant.</b> (a) Except for salary or wages received <br/>
<a id="pl.71.18"></a><var>71.18</var>as a temporary employee of the legislature during a legislative session, if any retired <br/>
<a id="pl.71.19"></a><var>71.19</var>employee again becomes entitled to receive salary or wages from the state, or any <br/>
<a id="pl.71.20"></a><var>71.20</var>employer who employs state employees as that term is defined in section 
         <statute_ref>352.01, <br/>
<a id="pl.71.21"></a><var>71.21</var>subdivision 2
         </statute_ref>, other than salary or wages received as a temporary employee of the <br/>
<a id="pl.71.22"></a><var>71.22</var>legislature during a legislative session in a position covered by this chapter, the annuity or <br/>
<a id="pl.71.23"></a><var>71.23</var>retirement allowance shall must cease when the retired employee has earned an amount <br/>
<a id="pl.71.24"></a><var>71.24</var>equal to the annual maximum earnings allowable for that age for the continued receipt of <br/>
<a id="pl.71.25"></a><var>71.25</var>full benefit amounts monthly under the federal old age, survivors, and disability insurance <br/>
<a id="pl.71.26"></a><var>71.26</var>program as set by the secretary of health and human services under United States Code, <br/>
<a id="pl.71.27"></a><var>71.27</var>title 42, section 403, in any calendar year. If the retired employee has not yet reached the <br/>
<a id="pl.71.28"></a><var>71.28</var>minimum age for the receipt of Social Security benefits, the maximum earnings for the <br/>
<a id="pl.71.29"></a><var>71.29</var>retired employee shall be are equal to the annual maximum earnings allowable for the <br/>
<a id="pl.71.30"></a><var>71.30</var>minimum age for the receipt of Social Security benefits. <br/>
<a id="pl.71.31"></a><var>71.31</var>(b) The balance of the annual retirement annuity after cessation must be handled or <br/>
<a id="pl.71.32"></a><var>71.32</var>disposed of as provided in section 
         <statute_ref>356.47</statute_ref>. <br/>
<a id="pl.71.33"></a><var>71.33</var>(c) The annuity must be resumed when state service ends, or, if the retired employee <br/>
<a id="pl.71.34"></a><var>71.34</var>is still employed at the beginning of the next calendar year, at the beginning of that <br/>
<a id="pl.71.35"></a><var>71.35</var>calendar year, and payment must again end when the retired employee has earned the <br/>
<a id="pl.72.1"></a><var>72.1</var>applicable reemployment earnings maximum specified in this subdivision. If the retired <br/>
<a id="pl.72.2"></a><var>72.2</var>employee is granted a sick leave without pay, but not otherwise, the annuity or retirement <br/>
<a id="pl.72.3"></a><var>72.3</var>allowance must be resumed during the period of sick leave.<br/>
<a id="pl.72.4"></a><var>72.4</var>(d) No payroll deductions for the retirement fund may be made from the earnings of <br/>
<a id="pl.72.5"></a><var>72.5</var>a reemployed retired employee.<br/>
<a id="pl.72.6"></a><var>72.6</var>(e) No change shall may be made in the monthly amount of an annuity or retirement <br/>
<a id="pl.72.7"></a><var>72.7</var>allowance because of the reemployment of an annuitant.<br/>
<a id="pl.72.8"></a><var>72.8</var>(f) If a reemployed annuitant whose annuity is suspended under paragraph (a) <br/>
<a id="pl.72.9"></a><var>72.9</var>is having insurance premium amounts withheld under section 356.87, subdivision 2, <br/>
<a id="pl.72.10"></a><var>72.10</var>insurance premium amounts must continue to be withheld and transferred from the <br/>
<a id="pl.72.11"></a><var>72.11</var>suspended portion of the annuity. The balance of the annual retirement annuity after <br/>
<a id="pl.72.12"></a><var>72.12</var>cessation, after deduction of the insurance premium amounts, must be treated as specified <br/>
<a id="pl.72.13"></a><var>72.13</var>in paragraph (b).<br/>
<a id="pl.72.14"></a><var>72.14</var><b>EFFECTIVE DATE.</b>This section is effective January 1, 2010.<br/>
<br/>
<a id="bill.2.5.0"></a><a id="pl.72.15"></a><var>72.15</var>    Sec. 5. Minnesota Statutes 2008, section 352.91, is amended by adding a subdivision <br/>
<a id="pl.72.16"></a><var>72.16</var>to read:<br/>
<a id="pl.72.17"></a><var>72.17</var>    Subd. 6. <b>Correction of plan coverage errors.</b> If erroneous employee deductions <br/>
<a id="pl.72.18"></a><var>72.18</var>and employer contributions are caused by an error in plan coverage involving the <br/>
<a id="pl.72.19"></a><var>72.19</var>correctional state employees retirement plan and any other plan specified in section <br/>
<a id="pl.72.20"></a><var>72.20</var>356.99, that section applies.<br/>
<a id="pl.72.21"></a><var>72.21</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2010.<br/>
<br/>
<a id="bill.2.6.0"></a><a id="pl.72.22"></a><var>72.22</var>    Sec. 6. Minnesota Statutes 2008, section 352.965, subdivision 1, is amended to read:<br/>
<a id="pl.72.23"></a><var>72.23</var>    Subdivision 1. <b>Establishment.</b> (a) The Minnesota state deferred compensation plan <br/>
<a id="pl.72.24"></a><var>72.24</var>is established. For purposes of this section, "plan" means the Minnesota state deferred <br/>
<a id="pl.72.25"></a><var>72.25</var>compensation plan, unless the context clearly indicates otherwise. The Minnesota State <br/>
<a id="pl.72.26"></a><var>72.26</var>Retirement System shall administer the plan.<br/>
<a id="pl.72.27"></a><var>72.27</var>    (b) The purpose of the plan is to provide a means for a public employee to contribute <br/>
<a id="pl.72.28"></a><var>72.28</var>a portion of the employee's compensation to a tax-deferred investment account. The plan <br/>
<a id="pl.72.29"></a><var>72.29</var>is an eligible tax-deferred compensation plan under section 457(b) of the Internal Revenue <br/>
<a id="pl.72.30"></a><var>72.30</var>Code, United States Code, title 26, section 457(b), and the applicable regulations under <br/>
<a id="pl.72.31"></a><var>72.31</var>Code of Federal Regulations, title 26, parts 1.457-3 to 1.457-10.<br/>
<a id="pl.73.1"></a><var>73.1</var>    (c) The board of directors of the Minnesota State Retirement System is the plan <br/>
<a id="pl.73.2"></a><var>73.2</var>trustee and plan sponsor. The board's executive director is the plan administrator. Fiduciary <br/>
<a id="pl.73.3"></a><var>73.3</var>activities of the plan must be undertaken in a manner consistent with chapter 356A.<br/>
<a id="pl.73.4"></a><var>73.4</var>    (d) The executive director, with the approval of the board of directors, shall <br/>
<a id="pl.73.5"></a><var>73.5</var>adopt and amend, as required to maintain tax-qualified status, a written plan document <br/>
<a id="pl.73.6"></a><var>73.6</var>specifying the material terms and conditions for eligibility, benefits, applicable limitations, <br/>
<a id="pl.73.7"></a><var>73.7</var>and the time and form under which benefit distributions can be made. With the approval <br/>
<a id="pl.73.8"></a><var>73.8</var>of the board of directors, the executive director may also establish policies and procedures <br/>
<a id="pl.73.9"></a><var>73.9</var>necessary for the administration of the deferred compensation plan.<br/>
<a id="pl.73.10"></a><var>73.10</var>    (e) The plan document shall must include provisions that are necessary to cause the <br/>
<a id="pl.73.11"></a><var>73.11</var>plan to be an eligible deferred compensation plan within the meaning of section 457(b) of <br/>
<a id="pl.73.12"></a><var>73.12</var>the Internal Revenue Code. The plan document may provide additional administrative and <br/>
<a id="pl.73.13"></a><var>73.13</var>substantive provisions consistent with state law, provided that those provisions will do <br/>
<a id="pl.73.14"></a><var>73.14</var>not cause the plan to fail to be an eligible deferred compensation plan within the meaning <br/>
<a id="pl.73.15"></a><var>73.15</var>of section 457(b) of the Internal Revenue Code and may include provisions for certain <br/>
<a id="pl.73.16"></a><var>73.16</var>optional features and services.<br/>
<a id="pl.73.17"></a><var>73.17</var>    (f) The board of directors may authorize the executive director to establish and <br/>
<a id="pl.73.18"></a><var>73.18</var>administer a Roth 457 plan if authorized by the Internal Revenue Code or a Roth <br/>
<a id="pl.73.19"></a><var>73.19</var>individual retirement account as defined under section 408A of the Internal Revenue Code.<br/>
<a id="pl.73.20"></a><var>73.20</var>    (g) All amounts contributed to the deferred compensation plan and all earnings <br/>
<a id="pl.73.21"></a><var>73.21</var>on those amounts must be held in trust, in custodial accounts, or in qualifying annuity <br/>
<a id="pl.73.22"></a><var>73.22</var>contracts for the exclusive benefit of the plan participants and beneficiaries, as required by <br/>
<a id="pl.73.23"></a><var>73.23</var>section 457(g) of the Internal Revenue Code and in accordance with sections 
         <statute_ref>356.001</statute_ref> and <br/>
<statute_ref><a id="pl.73.24"></a><var>73.24</var>356A.06, subdivision 1
         </statute_ref>.<br/>
<a id="pl.73.25"></a><var>73.25</var>    (h) The information and data maintained in the accounts of the participants and <br/>
<a id="pl.73.26"></a><var>73.26</var>beneficiaries are private data and shall must not be disclosed to anyone other than the <br/>
<a id="pl.73.27"></a><var>73.27</var>participant or beneficiary pursuant to a court order or pursuant to under section 
         <statute_ref>356.49</statute_ref>.<br/>
<a id="pl.73.28"></a><var>73.28</var>    (i) The plan document is not subject to the rule adoption process under the <br/>
<a id="pl.73.29"></a><var>73.29</var>Administrative Procedures Act, including section 
         <statute_ref>14.386</statute_ref>, but must conform with <br/>
<a id="pl.73.30"></a><var>73.30</var>applicable federal and state laws.<br/>
<a id="pl.73.31"></a><var>73.31</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.2.7.0"></a><a id="pl.73.32"></a><var>73.32</var>    Sec. 7. Minnesota Statutes 2008, section 352.965, subdivision 2, is amended to read:<br/>
<a id="pl.73.33"></a><var>73.33</var>    Subd. 2. <b>Right to participate in deferred compensation plan.</b> (a) At the request <br/>
<a id="pl.73.34"></a><var>73.34</var>of an officer or employee of the state, an officer or employee of a political subdivision, or <br/>
<a id="pl.73.35"></a><var>73.35</var>an employee covered by a retirement fund in section 
         <statute_ref>356.20, subdivision 2</statute_ref>, the appointing <br/>
<a id="pl.74.1"></a><var>74.1</var>authority shall defer the payment of part of the compensation of the public officer or <br/>
<a id="pl.74.2"></a><var>74.2</var>employee through payroll deduction.<br/>
<a id="pl.74.3"></a><var>74.3</var>(b) The amount to be deferred must be as provided in a written an agreement <br/>
<a id="pl.74.4"></a><var>74.4</var>between the officer or employee and the public employer plan sponsor. The agreement <br/>
<a id="pl.74.5"></a><var>74.5</var>must be in a form specified by the executive director of the Minnesota State Retirement <br/>
<a id="pl.74.6"></a><var>74.6</var>System and must be consistent with the requirements for an eligible plan under federal <br/>
<a id="pl.74.7"></a><var>74.7</var>and state tax laws, regulations, and rulings.<br/>
<a id="pl.74.8"></a><var>74.8</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.2.8.0"></a><a id="pl.74.9"></a><var>74.9</var>    Sec. 8. Minnesota Statutes 2009 Supplement, section 352B.011, subdivision 3, is <br/>
<a id="pl.74.10"></a><var>74.10</var>amended to read:<br/>
<a id="pl.74.11"></a><var>74.11</var>    Subd. 3. <b>Allowable service.</b> (a) "Allowable service" means:<br/>
<a id="pl.74.12"></a><var>74.12</var>(1) service in a month during which a member is paid a salary from which a member <br/>
<a id="pl.74.13"></a><var>74.13</var>contribution is deducted, deposited, and credited in the State Patrol retirement fund;<br/>
<a id="pl.74.14"></a><var>74.14</var>(2) for members defined in subdivision 10, clause (1), service in any month for <br/>
<a id="pl.74.15"></a><var>74.15</var>which payments have been made to the State Patrol retirement fund under law; and<br/>
<a id="pl.74.16"></a><var>74.16</var>(3) for members defined in subdivision 10, clauses (2) and (3), service for which <br/>
<a id="pl.74.17"></a><var>74.17</var>payments have been made to the State Patrol retirement fund under law, service for which <br/>
<a id="pl.74.18"></a><var>74.18</var>payments were made to the State Police officers retirement fund under law after June <br/>
<a id="pl.74.19"></a><var>74.19</var>30, 1961, and all prior service which was credited to a member for service on or before <br/>
<a id="pl.74.20"></a><var>74.20</var>June 30, 1961.;<br/>
<a id="pl.74.21"></a><var>74.21</var>(4) any period of authorized leave of absence without pay that does not exceed one <br/>
<a id="pl.74.22"></a><var>74.22</var>year and for which the employee obtains credit by payment to the fund under section <br/>
<a id="pl.74.23"></a><var>74.23</var>352B.013; and<br/>
<a id="pl.74.24"></a><var>74.24</var>(5) eligible periods of uniformed service for which the member obtained service <br/>
<a id="pl.74.25"></a><var>74.25</var>credit by payment under section 352B.086 to the fund.<br/>
<a id="pl.74.26"></a><var>74.26</var>(b) Allowable service also includes any period of absence from duty by a member <br/>
<a id="pl.74.27"></a><var>74.27</var>who, by reason of injury incurred in the performance of duty, is temporarily disabled and <br/>
<a id="pl.74.28"></a><var>74.28</var>for which disability the state is liable under the workers' compensation law, until the date <br/>
<a id="pl.74.29"></a><var>74.29</var>authorized by the executive director for commencement of payment of a disability benefit <br/>
<a id="pl.74.30"></a><var>74.30</var>or until the date of a return to employment.<br/>
<a id="pl.74.31"></a><var>74.31</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.2.9.0"></a><a id="pl.74.32"></a><var>74.32</var>    Sec. 9. <b>[352B.013] AUTHORIZED LEAVE OF ABSENCE SERVICE CREDIT </b><br/>
<a id="pl.74.33"></a><var>74.33</var><b>PURCHASE PROCEDURE.</b><br/>
<a id="pl.75.1"></a><var>75.1</var>    Subdivision 1. <b>Application.</b> This section specifies the procedure for purchasing <br/>
<a id="pl.75.2"></a><var>75.2</var>service credit in the State Patrol retirement plan for authorized leaves of absence under <br/>
<a id="pl.75.3"></a><var>75.3</var>section 352B.011, subdivision 3, unless an alternative payment procedure is specified in <br/>
<a id="pl.75.4"></a><var>75.4</var>law for a particular form of leave or break in service.<br/>
<a id="pl.75.5"></a><var>75.5</var>    Subd. 2. <b>Purchase procedure.</b> (a) An employee covered by the plan specified in <br/>
<a id="pl.75.6"></a><var>75.6</var>this chapter may purchase credit for allowable service in the plan for a period specified <br/>
<a id="pl.75.7"></a><var>75.7</var>in subdivision 1 if the employee makes a payment as specified in paragraph (b) or (c), <br/>
<a id="pl.75.8"></a><var>75.8</var>whichever applies. The employing unit, at its option, may pay the employer portion of the <br/>
<a id="pl.75.9"></a><var>75.9</var>amount specified in paragraph (b) on behalf of its employees.<br/>
<a id="pl.75.10"></a><var>75.10</var>(b) If payment is received by the executive director within one year from the date <br/>
<a id="pl.75.11"></a><var>75.11</var>the employee returned to work following the authorized leave, the payment amount is <br/>
<a id="pl.75.12"></a><var>75.12</var>equal to the employee and employer contribution rates specified in section 352B.02 at the <br/>
<a id="pl.75.13"></a><var>75.13</var>end of the leave period multiplied by the employee's hourly rate of salary on the date of <br/>
<a id="pl.75.14"></a><var>75.14</var>return from the leave of absence and by the days and months of the leave of absence for <br/>
<a id="pl.75.15"></a><var>75.15</var>which the employee is eligible for allowable service credit. The payment must include <br/>
<a id="pl.75.16"></a><var>75.16</var>compound interest at a monthly rate of 0.71 percent from the last day of the leave period <br/>
<a id="pl.75.17"></a><var>75.17</var>until the last day of the month in which payment is received. If payment is received by the <br/>
<a id="pl.75.18"></a><var>75.18</var>executive director after one year from the date the employee returned to work following <br/>
<a id="pl.75.19"></a><var>75.19</var>the authorized leave, the payment amount is the amount determined under section <br/>
<a id="pl.75.20"></a><var>75.20</var><statute_ref>356.551</statute_ref>. Payment under this paragraph must be made before the date of termination from <br/>
<a id="pl.75.21"></a><var>75.21</var>public employment covered under this chapter.<br/>
<a id="pl.75.22"></a><var>75.22</var>(c) If the employee terminates employment covered by this chapter during the leave <br/>
<a id="pl.75.23"></a><var>75.23</var>or following the leave rather than returning to covered employment, payment must <br/>
<a id="pl.75.24"></a><var>75.24</var>be received by the executive director within 30 days after the termination date. The <br/>
<a id="pl.75.25"></a><var>75.25</var>payment amount is equal to the employee and employer contribution rates specified in <br/>
<a id="pl.75.26"></a><var>75.26</var>section 352B.02 on the day prior to the termination date, multiplied by the employee's <br/>
<a id="pl.75.27"></a><var>75.27</var>hourly rate of salary on that date and by the days and months of the leave of absence <br/>
<a id="pl.75.28"></a><var>75.28</var>prior to termination.<br/>
<a id="pl.75.29"></a><var>75.29</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.2.10.0"></a><a id="pl.75.30"></a><var>75.30</var>    Sec. 10. Minnesota Statutes 2008, section 352B.02, is amended by adding a <br/>
<a id="pl.75.31"></a><var>75.31</var>subdivision to read:<br/>
<a id="pl.75.32"></a><var>75.32</var>    Subd. 3. <b>Correction of plan coverage errors.</b> If erroneous employee deductions <br/>
<a id="pl.75.33"></a><var>75.33</var>and employer contributions are caused by an error in plan coverage involving the State <br/>
<a id="pl.75.34"></a><var>75.34</var>Patrol retirement plan and any other plan specified in section 356.99, that section applies.<br/>
<a id="pl.76.1"></a><var>76.1</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2010.<br/>
<br/>
<a id="bill.2.11.0"></a><a id="pl.76.2"></a><var>76.2</var>    Sec. 11. Minnesota Statutes 2008, section 353.27, subdivision 7a, is amended to read:<br/>
<a id="pl.76.3"></a><var>76.3</var>    Subd. 7a. <b>Deductions or contributions transmitted by error.</b> (a) If employee <br/>
<a id="pl.76.4"></a><var>76.4</var>deductions and employer contributions were erroneously transmitted to the association, <br/>
<a id="pl.76.5"></a><var>76.5</var>but should have been transmitted to another Minnesota public pension a plan covered by <br/>
<a id="pl.76.6"></a><var>76.6</var>chapter 352D, 353D, 354B, or 354D, the executive director shall transfer the erroneous <br/>
<a id="pl.76.7"></a><var>76.7</var>employee deductions and employer contributions to the appropriate retirement fund or <br/>
<a id="pl.76.8"></a><var>76.8</var>individual account, as applicable, without interest. The time limitations specified in <br/>
<a id="pl.76.9"></a><var>76.9</var>subdivisions 7 and 12 do not apply. The transfer to the applicable defined contribution <br/>
<a id="pl.76.10"></a><var>76.10</var>plan account must include interest at the rate of 0.71 percent per month, compounded <br/>
<a id="pl.76.11"></a><var>76.11</var>annually, from the first day of the month following the month in which coverage should <br/>
<a id="pl.76.12"></a><var>76.12</var>have commenced in the defined contribution plan until the end of the month in which <br/>
<a id="pl.76.13"></a><var>76.13</var>the transfer occurs.<br/>
<a id="pl.76.14"></a><var>76.14</var>(b) For purposes of this subdivision, a Minnesota public pension plan means a <br/>
<a id="pl.76.15"></a><var>76.15</var>plan specified in section 
<statute_ref>356.30, subdivision 3</statute_ref>, or the plans governed by chapters 353D <br/>
<a id="pl.76.16"></a><var>76.16</var>and 354B. <br/>
<a id="pl.76.17"></a><var>76.17</var>(c) (b) A potential transfer under paragraph (a) that is reasonably determined to <br/>
<a id="pl.76.18"></a><var>76.18</var>cause the plan to fail to be a qualified plan under section 401(a) of the federal Internal <br/>
<a id="pl.76.19"></a><var>76.19</var>Revenue Code, as amended, must not be made by the executive director of the association. <br/>
<a id="pl.76.20"></a><var>76.20</var>Within 30 days after being notified by the Public Employees Retirement Association of <br/>
<a id="pl.76.21"></a><var>76.21</var>an unmade potential transfer under this paragraph, the employer of the affected person <br/>
<a id="pl.76.22"></a><var>76.22</var>must transmit an amount representing the applicable salary deductions and employer <br/>
<a id="pl.76.23"></a><var>76.23</var>contributions, without interest, to the retirement fund of the appropriate Minnesota public <br/>
<a id="pl.76.24"></a><var>76.24</var>pension plan, or to the applicable individual account if the proper coverage is by a defined <br/>
<a id="pl.76.25"></a><var>76.25</var>contribution plan. The association must provide the employing unit a credit for the amount <br/>
<a id="pl.76.26"></a><var>76.26</var>of the erroneous salary deductions and employer contributions against future contributions <br/>
<a id="pl.76.27"></a><var>76.27</var>from the employer. If the employing unit receives a credit under this paragraph, the <br/>
<a id="pl.76.28"></a><var>76.28</var>employing unit is responsible for refunding to the applicable employee any amount that <br/>
<a id="pl.76.29"></a><var>76.29</var>had been erroneously deducted from the person's salary.<br/>
<a id="pl.76.30"></a><var>76.30</var>(c) If erroneous employee deductions and employer contributions reflect a plan <br/>
<a id="pl.76.31"></a><var>76.31</var>coverage error involving any Public Employees Retirement Association plan specified in <br/>
<a id="pl.76.32"></a><var>76.32</var>section 356.99 and any other plan specified in that section, section 356.99 applies.<br/>
<a id="pl.76.33"></a><var>76.33</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2010.<br/>
<br/>
<a id="bill.2.12.0"></a><a id="pl.76.34"></a><var>76.34</var>    Sec. 12. Minnesota Statutes 2008, section 353.37, subdivision 3a, is amended to read:<br/>
<a id="pl.77.1"></a><var>77.1</var>    Subd. 3a. <b>Disposition of suspension or reduction amount.</b> (a) The balance of <br/>
<a id="pl.77.2"></a><var>77.2</var>the annual retirement annuity after suspension or the amount of the retirement annuity <br/>
<a id="pl.77.3"></a><var>77.3</var>reduction must be handled or disposed of as provided in section 
         <statute_ref>356.47</statute_ref>.  <br/>
<a id="pl.77.4"></a><var>77.4</var>(b) If a reemployed annuitant whose annuity is suspended is having insurance <br/>
<a id="pl.77.5"></a><var>77.5</var>premium amounts withheld under section 356.87, subdivision 2, insurance premium <br/>
<a id="pl.77.6"></a><var>77.6</var>amounts must continue to be withheld and transferred from the suspended portion of the <br/>
<a id="pl.77.7"></a><var>77.7</var>annuity. The balance of the annual retirement annuity after cessation, after deduction of <br/>
<a id="pl.77.8"></a><var>77.8</var>the insurance premium amounts, must be treated as specified in paragraph (a).<br/>
<a id="pl.77.9"></a><var>77.9</var><b>EFFECTIVE DATE.</b>This section is effective January 1, 2010.<br/>
<br/>
<a id="bill.2.13.0"></a><a id="pl.77.10"></a><var>77.10</var>    Sec. 13. Minnesota Statutes 2008, section 354.42, subdivision 7, is amended to read:<br/>
<a id="pl.77.11"></a><var>77.11</var>    Subd. 7. <b>Erroneous salary deductions or direct payments.</b> (a) Any deductions <br/>
<a id="pl.77.12"></a><var>77.12</var>taken from the salary of an employee for the retirement fund in error excess of amounts <br/>
<a id="pl.77.13"></a><var>77.13</var>required must be refunded to the employee upon the discovery of the error and after the <br/>
<a id="pl.77.14"></a><var>77.14</var>verification of the error by the employing unit making the deduction. The corresponding <br/>
<a id="pl.77.15"></a><var>77.15</var>excess employer contribution and excess additional employer contribution amounts <br/>
<a id="pl.77.16"></a><var>77.16</var>attributable to the erroneous salary deduction must be refunded to the employing unit.<br/>
<a id="pl.77.17"></a><var>77.17</var>(b) If salary deductions and employer contributions were erroneously transmitted <br/>
<a id="pl.77.18"></a><var>77.18</var>to the retirement fund and should have been transmitted to another Minnesota public <br/>
<a id="pl.77.19"></a><var>77.19</var>pension the plan covered by chapter 352D, 353D, 354B, or 354D, the executive director <br/>
<a id="pl.77.20"></a><var>77.20</var>must transfer these salary deductions and employer contributions to the account of the <br/>
<a id="pl.77.21"></a><var>77.21</var>appropriate public pension fund without interest. For purposes of this paragraph, a <br/>
<a id="pl.77.22"></a><var>77.22</var>Minnesota public pension plan means a plan specified in section 
<statute_ref>356.30, subdivision 3</statute_ref>, <br/>
<a id="pl.77.23"></a><var>77.23</var>or the plan governed by chapter 354B. person under the applicable plan. The transfer to <br/>
<a id="pl.77.24"></a><var>77.24</var>the applicable defined contribution plan account must include interest at the rate of 0.71 <br/>
<a id="pl.77.25"></a><var>77.25</var>percent per month, compounded annually, from the first day of the month following the <br/>
<a id="pl.77.26"></a><var>77.26</var>month in which coverage should have commenced in the defined contribution plan until <br/>
<a id="pl.77.27"></a><var>77.27</var>the end of the month in which the transfer occurs. <br/>
<a id="pl.77.28"></a><var>77.28</var>(c) A potential transfer under paragraph (b) that would cause the plan to fail to <br/>
<a id="pl.77.29"></a><var>77.29</var>be a qualified plan under section 401(a) of the Internal Revenue Code, as amended, <br/>
<a id="pl.77.30"></a><var>77.30</var>must not be made by the executive director. Within 30 days after being notified by the <br/>
<a id="pl.77.31"></a><var>77.31</var>Teachers Retirement Association of an unmade potential transfer under this paragraph, <br/>
<a id="pl.77.32"></a><var>77.32</var>the employer of the affected person must transmit an amount representing the applicable <br/>
<a id="pl.77.33"></a><var>77.33</var>salary deductions and employer contributions, without interest, to the retirement fund of <br/>
<a id="pl.77.34"></a><var>77.34</var>the appropriate Minnesota public pension plan fund account of the applicable person under <br/>
<a id="pl.77.35"></a><var>77.35</var>the appropriate plan. The retirement association must provide a credit for the amount of <br/>
<a id="pl.78.1"></a><var>78.1</var>the erroneous salary deductions and employer contributions against future contributions <br/>
<a id="pl.78.2"></a><var>78.2</var>from the employer.<br/>
<a id="pl.78.3"></a><var>78.3</var>(d) If a salary warrant or check from which a deduction for the retirement fund was <br/>
<a id="pl.78.4"></a><var>78.4</var>taken has been canceled or the amount of the warrant or if a check has been returned to <br/>
<a id="pl.78.5"></a><var>78.5</var>the funds of the employing unit making the payment, a refund of the amount deducted, <br/>
<a id="pl.78.6"></a><var>78.6</var>or any portion of it that is required to adjust the salary deductions, must be made to the <br/>
<a id="pl.78.7"></a><var>78.7</var>employing unit.<br/>
<a id="pl.78.8"></a><var>78.8</var>(e) Erroneous direct payments of member-paid contributions or erroneous salary <br/>
<a id="pl.78.9"></a><var>78.9</var>deductions that were not refunded during the regular payroll cycle processing must be <br/>
<a id="pl.78.10"></a><var>78.10</var>refunded to the member, plus interest computed using the rate and method specified in <br/>
<a id="pl.78.11"></a><var>78.11</var>section 
         <statute_ref>354.49, subdivision 2</statute_ref>.  <br/>
<a id="pl.78.12"></a><var>78.12</var>(f) Any refund under this subdivision that would cause the plan to fail to be a <br/>
<a id="pl.78.13"></a><var>78.13</var>qualified plan under section 401(a) of the Internal Revenue Code, as amended, may not <br/>
<a id="pl.78.14"></a><var>78.14</var>be refunded and instead must be credited against future contributions payable by the <br/>
<a id="pl.78.15"></a><var>78.15</var>employer. The employer is responsible for refunding to the applicable employee any <br/>
<a id="pl.78.16"></a><var>78.16</var>amount that was erroneously deducted from the salary of the employee, with interest as <br/>
<a id="pl.78.17"></a><var>78.17</var>specified in paragraph (e).<br/>
<a id="pl.78.18"></a><var>78.18</var>(g) If erroneous employee deductions and employer contributions are caused by an <br/>
<a id="pl.78.19"></a><var>78.19</var>error in plan coverage involving the plan and any other plan specified in section 356.99, <br/>
<a id="pl.78.20"></a><var>78.20</var>that section applies.<br/>
<a id="pl.78.21"></a><var>78.21</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2010.<br/>
<br/>
<a id="bill.2.14.0"></a><a id="pl.78.22"></a><var>78.22</var>    Sec. 14. Minnesota Statutes 2008, section 354A.12, is amended by adding a <br/>
<a id="pl.78.23"></a><var>78.23</var>subdivision to read:<br/>
<a id="pl.78.24"></a><var>78.24</var>    Subd. 6a. <b>Erroneous salary deductions or direct payments.</b> If erroneous <br/>
<a id="pl.78.25"></a><var>78.25</var>employee deductions and employer contributions reflect a plan coverage error involving <br/>
<a id="pl.78.26"></a><var>78.26</var>any plan covered by this chapter and any plan specified in section 356.99, that section <br/>
<a id="pl.78.27"></a><var>78.27</var>applies.<br/>
<a id="pl.78.28"></a><var>78.28</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2010.<br/>
<br/>
<a id="bill.2.15.0"></a><a id="pl.78.29"></a><var>78.29</var>    Sec. 15. Minnesota Statutes 2008, section 356.24, subdivision 1, is amended to read:<br/>
<a id="pl.78.30"></a><var>78.30</var>    Subdivision 1. <b>Restriction; exceptions.</b> (a) It is unlawful for a school district <br/>
<a id="pl.78.31"></a><var>78.31</var>or other governmental subdivision or state agency to levy taxes for, or to contribute <br/>
<a id="pl.78.32"></a><var>78.32</var>public funds to a supplemental pension or deferred compensation plan that is established, <br/>
<a id="pl.79.1"></a><var>79.1</var>maintained, and operated in addition to a primary pension program for the benefit of the <br/>
<a id="pl.79.2"></a><var>79.2</var>governmental subdivision employees other than:<br/>
<a id="pl.79.3"></a><var>79.3</var>    (1) to a supplemental pension plan that was established, maintained, and operated <br/>
<a id="pl.79.4"></a><var>79.4</var>before May 6, 1971;<br/>
<a id="pl.79.5"></a><var>79.5</var>    (2) to a plan that provides solely for group health, hospital, disability, or death <br/>
<a id="pl.79.6"></a><var>79.6</var>benefits;<br/>
<a id="pl.79.7"></a><var>79.7</var>    (3) to the individual retirement account plan established by chapter 354B;<br/>
<a id="pl.79.8"></a><var>79.8</var>    (4) to a plan that provides solely for severance pay under section 
         <statute_ref>465.72</statute_ref> to a retiring <br/>
<a id="pl.79.9"></a><var>79.9</var>or terminating employee; <br/>
<a id="pl.79.10"></a><var>79.10</var>    (5) for employees other than personnel employed by the Board of Trustees of the <br/>
<a id="pl.79.11"></a><var>79.11</var>Minnesota State Colleges and Universities and covered under the Higher Education <br/>
<a id="pl.79.12"></a><var>79.12</var>Supplemental Retirement Plan under chapter 354C, but including city managers covered <br/>
<a id="pl.79.13"></a><var>79.13</var>by an alternative retirement arrangement under section 
         <statute_ref>353.028</statute_ref>, subdivision 3, paragraph <br/>
<a id="pl.79.14"></a><var>79.14</var>(a), or by the defined contribution plan of the Public Employees Retirement Association <br/>
<a id="pl.79.15"></a><var>79.15</var>under section 
         <statute_ref>353.028</statute_ref>, subdivision 3, paragraph (b), if the supplemental plan coverage is <br/>
<a id="pl.79.16"></a><var>79.16</var>provided for in a personnel policy of the public employer or in the collective bargaining <br/>
<a id="pl.79.17"></a><var>79.17</var>agreement between the public employer and the exclusive representative of public <br/>
<a id="pl.79.18"></a><var>79.18</var>employees in an appropriate unit or in the individual employment contract between a city <br/>
<a id="pl.79.19"></a><var>79.19</var>and a city manager, and if for each available investment all fees and historic rates of return <br/>
<a id="pl.79.20"></a><var>79.20</var>for the prior one-, three-, five-, and ten-year periods, or since inception, are disclosed in an <br/>
<a id="pl.79.21"></a><var>79.21</var>easily comprehended document not to exceed two pages, in an amount matching employee <br/>
<a id="pl.79.22"></a><var>79.22</var>contributions on a dollar for dollar basis, but not to exceed an employer contribution of <br/>
<a id="pl.79.23"></a><var>79.23</var>one-half of the available elective deferral permitted per year per employee, under the <br/>
<a id="pl.79.24"></a><var>79.24</var>Internal Revenue Code:<br/>
<a id="pl.79.25"></a><var>79.25</var>    (i) to the state of Minnesota deferred compensation plan under section 
         <statute_ref>352.965</statute_ref>; <br/>
<a id="pl.79.26"></a><var>79.26</var>    (ii) in payment of the applicable portion of the contribution made to any investment <br/>
<a id="pl.79.27"></a><var>79.27</var>eligible under section 403(b) of the Internal Revenue Code, if the employing unit has <br/>
<a id="pl.79.28"></a><var>79.28</var>complied with any applicable pension plan provisions of the Internal Revenue Code with <br/>
<a id="pl.79.29"></a><var>79.29</var>respect to the tax-sheltered annuity program during the preceding calendar year; or<br/>
<a id="pl.79.30"></a><var>79.30</var>    (iii) any other deferred compensation plan offered by the employer under section <br/>
<a id="pl.79.31"></a><var>79.31</var>457 of the Internal Revenue Code;<br/>
<a id="pl.79.32"></a><var>79.32</var>    (6) for personnel employed by the Board of Trustees of the Minnesota State Colleges <br/>
<a id="pl.79.33"></a><var>79.33</var>and Universities and not covered by clause (5), to the supplemental retirement plan under <br/>
<a id="pl.79.34"></a><var>79.34</var>chapter 354C, if the supplemental plan coverage is provided for in a personnel policy <br/>
<a id="pl.79.35"></a><var>79.35</var>or in the collective bargaining agreement of the public employer with the exclusive <br/>
<a id="pl.79.36"></a><var>79.36</var>representative of the covered employees in an appropriate unit, in an amount matching <br/>
<a id="pl.80.1"></a><var>80.1</var>employee contributions on a dollar for dollar basis, but not to exceed an employer <br/>
<a id="pl.80.2"></a><var>80.2</var>contribution of $2,700 a year for each employee;<br/>
<a id="pl.80.3"></a><var>80.3</var>    (7) to a supplemental plan or to a governmental trust to save for postretirement <br/>
<a id="pl.80.4"></a><var>80.4</var>health care expenses qualified for tax-preferred treatment under the Internal Revenue <br/>
<a id="pl.80.5"></a><var>80.5</var>Code, if the supplemental plan coverage is provided for in a personnel policy or in the <br/>
<a id="pl.80.6"></a><var>80.6</var>collective bargaining agreement of a public employer with the exclusive representative of <br/>
<a id="pl.80.7"></a><var>80.7</var>the covered employees in an appropriate unit;<br/>
<a id="pl.80.8"></a><var>80.8</var>    (8) to the laborers national industrial pension fund or to a laborers local pension <br/>
<a id="pl.80.9"></a><var>80.9</var>fund for the employees of a governmental subdivision who are covered by a collective <br/>
<a id="pl.80.10"></a><var>80.10</var>bargaining agreement that provides for coverage by that fund and that sets forth a fund <br/>
<a id="pl.80.11"></a><var>80.11</var>contribution rate, but not to exceed an employer contribution of $5,000 per year per <br/>
<a id="pl.80.12"></a><var>80.12</var>employee;<br/>
<a id="pl.80.13"></a><var>80.13</var>    (9) to the plumbers and pipefitters national pension fund or to a plumbers and <br/>
<a id="pl.80.14"></a><var>80.14</var>pipefitters local pension fund for the employees of a governmental subdivision who are <br/>
<a id="pl.80.15"></a><var>80.15</var>covered by a collective bargaining agreement that provides for coverage by that fund and <br/>
<a id="pl.80.16"></a><var>80.16</var>that sets forth a fund contribution rate, but not to exceed an employer contribution of <br/>
<a id="pl.80.17"></a><var>80.17</var>$5,000 per year per employee;<br/>
<a id="pl.80.18"></a><var>80.18</var>    (10) to the international union of operating engineers pension fund for the employees <br/>
<a id="pl.80.19"></a><var>80.19</var>of a governmental subdivision who are covered by a collective bargaining agreement that <br/>
<a id="pl.80.20"></a><var>80.20</var>provides for coverage by that fund and that sets forth a fund contribution rate, but not to <br/>
<a id="pl.80.21"></a><var>80.21</var>exceed an employer contribution of $5,000 per year per employee; <br/>
<a id="pl.80.22"></a><var>80.22</var>    (11) to a supplemental plan organized and operated under the federal Internal <br/>
<a id="pl.80.23"></a><var>80.23</var>Revenue Code, as amended, that is wholly and solely funded by the employee's <br/>
<a id="pl.80.24"></a><var>80.24</var>accumulated sick leave, accumulated vacation leave, and accumulated severance pay; <br/>
<a id="pl.80.25"></a><var>80.25</var>    (12) to the International Association of Machinists national pension fund for the <br/>
<a id="pl.80.26"></a><var>80.26</var>employees of a governmental subdivision who are covered by a collective bargaining <br/>
<a id="pl.80.27"></a><var>80.27</var>agreement that provides for coverage by that fund and that sets forth a fund contribution <br/>
<a id="pl.80.28"></a><var>80.28</var>rate, but not to exceed an employer contribution of $5,000 per year per employee; or<br/>
<a id="pl.80.29"></a><var>80.29</var>    (13) for employees of United Hospital District, Blue Earth, to the state of Minnesota <br/>
<a id="pl.80.30"></a><var>80.30</var>deferred compensation program, if the employee makes a contribution, in an amount that <br/>
<a id="pl.80.31"></a><var>80.31</var>does not exceed the total percentage of covered salary under section 
         <statute_ref>353.27</statute_ref>, subdivisions <br/>
<a id="pl.80.32"></a><var>80.32</var>3 and 3a.<br/>
<a id="pl.80.33"></a><var>80.33</var>    (b) No governmental subdivision may make a contribution to a deferred <br/>
<a id="pl.80.34"></a><var>80.34</var>compensation plan operating under section 457 of the Internal Revenue Code for volunteer <br/>
<a id="pl.80.35"></a><var>80.35</var>or emergency on-call firefighters in lieu of providing retirement coverage under the federal <br/>
<a id="pl.80.36"></a><var>80.36</var>Old Age, Survivors, and Disability Insurance Program.<br/>
<a id="pl.81.1"></a><var>81.1</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.2.16.0"></a><a id="pl.81.2"></a><var>81.2</var>    Sec. 16. Minnesota Statutes 2008, section 356.50, subdivision 4, is amended to read:<br/>
<a id="pl.81.3"></a><var>81.3</var>    Subd. 4. <b>Annuity repayment.</b> Notwithstanding subdivisions 1 and 2, if after being <br/>
<a id="pl.81.4"></a><var>81.4</var>discharged, the person commences receipt of an annuity from the applicable plan, and it is <br/>
<a id="pl.81.5"></a><var>81.5</var>later determined that the person was wrongfully discharged, the person shall repay the <br/>
<a id="pl.81.6"></a><var>81.6</var>annuity received in a lump sum within 60 days of receipt of the back pay award. If the <br/>
<a id="pl.81.7"></a><var>81.7</var>annuity is not repaid, the person is not entitled to reinstatement in the applicable plan as <br/>
<a id="pl.81.8"></a><var>81.8</var>an active member, the person is not authorized to make payments under subdivision 2, <br/>
<a id="pl.81.9"></a><var>81.9</var>paragraph (a), and, for subsequent employment with the employer, the person shall be <br/>
<a id="pl.81.10"></a><var>81.10</var>treated as a reemployed annuitant.<br/>
<a id="pl.81.11"></a><var>81.11</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>

<a id="bill.2.17.0"></a><a id="pl.81.13"></a><var>81.13</var>    Sec. 17. <b>[356.99] CORRECTION OF ERRONEOUS DEFINED BENEFIT PLAN </b><br/>
<a id="pl.81.14"></a><var>81.14</var><b>COVERAGE.</b><br/>
<a id="pl.81.15"></a><var>81.15</var>    Subdivision 1. <b>Definitions.</b> (a) For purposes of this section, the terms in paragraphs <br/>
<a id="pl.81.16"></a><var>81.16</var>(b) to (e) have the meanings given them.<br/>
<a id="pl.81.17"></a><var>81.17</var>(b) "Chief administrative officer" means the person selected or elected by the <br/>
<a id="pl.81.18"></a><var>81.18</var>governing board of a covered pension plan with primary responsibility to administer the <br/>
<a id="pl.81.19"></a><var>81.19</var>covered pension plan, or that person's designee or representative.<br/>
<a id="pl.81.20"></a><var>81.20</var>(c) "Covered pension plan" means a plan enumerated in section 356.30, subdivision <br/>
<a id="pl.81.21"></a><var>81.21</var>3, except clauses (3), (5), (6), and (11).<br/>
<a id="pl.81.22"></a><var>81.22</var>(d) "Governing board" means the governing board of the Minnesota State Retirement <br/>
<a id="pl.81.23"></a><var>81.23</var>System, the Public Employees Retirement Association, the Teachers Retirement <br/>
<a id="pl.81.24"></a><var>81.24</var>Association, the Duluth Teachers Retirement Fund Association, or the St. Paul Teachers <br/>
<a id="pl.81.25"></a><var>81.25</var>Retirement Fund Association.<br/>
<a id="pl.81.26"></a><var>81.26</var>(e) "Member" means an active plan member in a covered pension plan.<br/>
<a id="pl.81.27"></a><var>81.27</var>    Subd. 2. <b>Treatment of terminated employee coverage error.</b> Any person <br/>
<a id="pl.81.28"></a><var>81.28</var>who terminated the erroneously covered service before a chief administrative officer <br/>
<a id="pl.81.29"></a><var>81.29</var>determined the covered pension plan coverage was in error retains the coverage with the <br/>
<a id="pl.81.30"></a><var>81.30</var>plan that originally credited the service.<br/>
<a id="pl.81.31"></a><var>81.31</var>    Subd. 3. <b>Active employee correction of prospective service coverage.</b> Upon <br/>
<a id="pl.81.32"></a><var>81.32</var>determination by a chief administrative officer that a member is covered by the wrong <br/>
<a id="pl.81.33"></a><var>81.33</var>pension plan, the employer must stop remitting the erroneous employee deductions and <br/>
<a id="pl.82.1"></a><var>82.1</var>employer contributions and report the employee to the correct covered pension plan for all <br/>
<a id="pl.82.2"></a><var>82.2</var>subsequent service.<br/>
<a id="pl.82.3"></a><var>82.3</var>    Subd. 4. <b>Active employee treatment of past service.</b> Any plan member, with past <br/>
<a id="pl.82.4"></a><var>82.4</var>service credited in an erroneous plan, retains the coverage for that past service with the <br/>
<a id="pl.82.5"></a><var>82.5</var>plan that originally credited that service if the reporting error began earlier than two <br/>
<a id="pl.82.6"></a><var>82.6</var>fiscal years prior to the current fiscal year in which the error was determined by the chief <br/>
<a id="pl.82.7"></a><var>82.7</var>administrative officer. If the reporting error began within two fiscal years prior to the <br/>
<a id="pl.82.8"></a><var>82.8</var>current fiscal year, the pension plan coverage for that past service must be corrected as <br/>
<a id="pl.82.9"></a><var>82.9</var>provided in subdivision 5.<br/>
<a id="pl.82.10"></a><var>82.10</var>    Subd. 5. <b>Past service transfer procedure.</b> (a) For cases under subdivision 4 <br/>
<a id="pl.82.11"></a><var>82.11</var>requiring correction of prior service coverage, on behalf of the applicable member the <br/>
<a id="pl.82.12"></a><var>82.12</var>chief administrative officer of the covered pension plan fund that has received erroneous <br/>
<a id="pl.82.13"></a><var>82.13</var>employee deductions and employer contributions must transfer to the appropriate covered <br/>
<a id="pl.82.14"></a><var>82.14</var>retirement plan fund an amount which is the lesser of all contributions made by or on <br/>
<a id="pl.82.15"></a><var>82.15</var>behalf of the member for the period of erroneous membership, or the specific amount <br/>
<a id="pl.82.16"></a><var>82.16</var>requested by the chief administrative officer of the other covered pension plan which <br/>
<a id="pl.82.17"></a><var>82.17</var>represents the employee deductions and employer contributions that would have been <br/>
<a id="pl.82.18"></a><var>82.18</var>made had the member been properly reported.<br/>
<a id="pl.82.19"></a><var>82.19</var>(b) If excess employee deductions remain in the member's account after the transfer <br/>
<a id="pl.82.20"></a><var>82.20</var>of funds, the remaining erroneous amount must be refunded to the person with interest <br/>
<a id="pl.82.21"></a><var>82.21</var>at the rate provided under the general refund law of the applicable covered pension <br/>
<a id="pl.82.22"></a><var>82.22</var>plan. The chief administrative officer must also return any remaining excess employer <br/>
<a id="pl.82.23"></a><var>82.23</var>contributions by providing to the employer a credit against future contributions payable by <br/>
<a id="pl.82.24"></a><var>82.24</var>that employer.<br/>
<a id="pl.82.25"></a><var>82.25</var>(c) If the contributions transferred to the correct covered pension plan fund are less <br/>
<a id="pl.82.26"></a><var>82.26</var>than the amounts required for the period being corrected, the chief administrative officer <br/>
<a id="pl.82.27"></a><var>82.27</var>of the correct covered pension plan fund must collect the remaining employee deductions <br/>
<a id="pl.82.28"></a><var>82.28</var>and employer contributions from the employer under laws for recovering deficient <br/>
<a id="pl.82.29"></a><var>82.29</var>contributions applicable to the correct covered pension plan, except that no interest is <br/>
<a id="pl.82.30"></a><var>82.30</var>chargeable if the additional amounts due under this paragraph are received by the chief <br/>
<a id="pl.82.31"></a><var>82.31</var>administrative officer within 30 days of notifying the employer of the amount due.<br/>
<a id="pl.82.32"></a><var>82.32</var>(d) A potential transfer under this section that would cause a plan to fail to be a <br/>
<a id="pl.82.33"></a><var>82.33</var>qualified plan under section 401(a) of the Internal Revenue Code, as amended, must not be <br/>
<a id="pl.82.34"></a><var>82.34</var>made. Within 30 days after being notified by a chief administrative officer of an unmade <br/>
<a id="pl.82.35"></a><var>82.35</var>potential transfer under this section, the employer of the member must transmit an amount <br/>
<a id="pl.82.36"></a><var>82.36</var>representing the applicable salary deductions and employer contributions, without interest, <br/>
<a id="pl.83.1"></a><var>83.1</var>to the fund of the appropriate covered pension plan. The chief administrative officer of the <br/>
<a id="pl.83.2"></a><var>83.2</var>covered pension plan which erroneously provided coverage must provide to the employer <br/>
<a id="pl.83.3"></a><var>83.3</var>a credit for the amount of the erroneous salary deductions and employer contributions <br/>
<a id="pl.83.4"></a><var>83.4</var>against future contributions from that employer.<br/>
<a id="pl.83.5"></a><var>83.5</var>(e) Upon transfer of the required assets, or payment from the employer under <br/>
<a id="pl.83.6"></a><var>83.6</var>paragraph (d), whichever is applicable, allowable service and salary credit for the period <br/>
<a id="pl.83.7"></a><var>83.7</var>being transferred is forfeited in the erroneous plan and is granted in the correct plan.<br/>
<a id="pl.83.8"></a><var>83.8</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2010.<br/>
<br/>
<a id="bill.2.18.0"></a><a id="pl.83.9"></a><var>83.9</var>    Sec. 18. Minnesota Statutes 2008, section 490.123, is amended by adding a subdivision <br/>
<a id="pl.83.10"></a><var>83.10</var>to read:<br/>
<a id="pl.83.11"></a><var>83.11</var>    Subd. 4. <b>Correction of contribution errors.</b> (a) If erroneous employee deductions <br/>
<a id="pl.83.12"></a><var>83.12</var>and employer contributions are caused by an error in plan coverage involving the judges <br/>
<a id="pl.83.13"></a><var>83.13</var>retirement plan and any other plan specified in section 356.99, that section applies.<br/>
<a id="pl.83.14"></a><var>83.14</var>(b) The provisions of section 352.04, subdivisions 8 and 9, apply to the judges' <br/>
<a id="pl.83.15"></a><var>83.15</var>retirement plan, except that if employee deductions or contributions are erroneously <br/>
<a id="pl.83.16"></a><var>83.16</var>transmitted to the judges' retirement fund for service rendered after the service credit limit <br/>
<a id="pl.83.17"></a><var>83.17</var>under section 490.121, subdivision 22, has been attained, consistent with section 352D.04, <br/>
<a id="pl.83.18"></a><var>83.18</var>subdivision 2, no employer contributions may be transferred.<br/>
<a id="pl.83.19"></a><var>83.19</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2010.<br/>
<br/>
<a id="bill.2.19.0"></a><a id="pl.83.20"></a><var>83.20</var>    Sec. 19. <b> REPEALER.</b><br/>
<a id="pl.83.21"></a><var>83.21</var>Minnesota Statutes 2008, sections 352.91, subdivision 5; and 353.88, are repealed.<br/>
<a id="pl.83.22"></a><var>83.22</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2010.<br/>
<br/>
<a id="bill.3.0.0"></a>

<a id="bill.3.1.0"></a><a id="pl.83.25"></a><var>83.25</var>    Section 1. Minnesota Statutes 2008, section 352.965, subdivision 6, is amended to read:<br/>
<a id="pl.83.26"></a><var>83.26</var>    Subd. 6. <b>Plan administrative expenses.</b> (a) The reasonable and necessary <br/>
<a id="pl.83.27"></a><var>83.27</var>administrative expenses of the deferred compensation plan may be charged to plan <br/>
<a id="pl.83.28"></a><var>83.28</var>participants in the form of an annual fee, an asset-based fee, a percentage of the <br/>
<a id="pl.83.29"></a><var>83.29</var>contributions to the plan, or a combination thereof, as set forth in the plan document. The <br/>
<a id="pl.83.30"></a><var>83.30</var>executive director of the system at the direction of the board of directors shall establish <br/>
<a id="pl.83.31"></a><var>83.31</var>procedures to carry out this section including allocation of administrative costs of the plan <br/>
<a id="pl.84.1"></a><var>84.1</var>to participants. Processes and procedures shall be set forth in the plan document. Fees <br/>
<a id="pl.84.2"></a><var>84.2</var>cannot be charged on contributions and investment returns attributable to contributions <br/>
<a id="pl.84.3"></a><var>84.3</var>made to the Minnesota supplemental investment funds before July 1, 1992. <br/>
<a id="pl.84.4"></a><var>84.4</var>    (b) The plan document must conform to federal and state tax laws, regulations, and <br/>
<a id="pl.84.5"></a><var>84.5</var>rulings, and is not subject to the Administrative Procedure Act.<br/>
<a id="pl.84.6"></a><var>84.6</var>    (c) The executive director may contract with a third party to perform administrative <br/>
<a id="pl.84.7"></a><var>84.7</var>and record keeping functions. The executive director may solicit bids and negotiate such <br/>
<a id="pl.84.8"></a><var>84.8</var>contracts. Participating employers must provide the necessary data to the third-party <br/>
<a id="pl.84.9"></a><var>84.9</var>record keeper as determined by the executive director. The third-party record keeper and <br/>
<a id="pl.84.10"></a><var>84.10</var>the Minnesota State Retirement System shall follow the data privacy provisions under <br/>
<a id="pl.84.11"></a><var>84.11</var>chapter 13. The third-party record keeper may not solicit participants for any product or <br/>
<a id="pl.84.12"></a><var>84.12</var>services not related to the deferred compensation plan.<br/>
<a id="pl.84.13"></a><var>84.13</var>    (d) The board of directors may authorize a third-party investment consultant <br/>
<a id="pl.84.14"></a><var>84.14</var>to provide investment information and advice, provided that if the offering of such <br/>
<a id="pl.84.15"></a><var>84.15</var>information and advice is consistent with the investment advice requirements applicable <br/>
<a id="pl.84.16"></a><var>84.16</var>to private plans under Title VI, subtitle A, of the Pension Protection Act of 2006, Public <br/>
<a id="pl.84.17"></a><var>84.17</var>Law 109-280, section 601.<br/>
<a id="pl.84.18"></a><var>84.18</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2010.<br/>
<br/>
<a id="bill.4.0.0"></a>

<a id="pl.84.21"></a><var>84.21</var><b>PROGRAM AMENDMENTS</b><br/>

<a id="bill.4.1.0"></a><a id="pl.84.22"></a><var>84.22</var>    Section 1. Minnesota Statutes 2008, section 3A.07, is amended to read:<br/>
<a id="pl.84.23"></a><var>84.23</var><b>3A.07 APPLICATION.</b><br/>
<a id="pl.84.24"></a><var>84.24</var>    (a) Except as provided in paragraph (b) or (d), this chapter applies to members <br/>
<a id="pl.84.25"></a><var>84.25</var>of the legislature in service after July 1, 1965, who otherwise meet the requirements <br/>
<a id="pl.84.26"></a><var>84.26</var>of this chapter.<br/>
<a id="pl.84.27"></a><var>84.27</var>    (b) Members of the legislature who were elected for the first time after June 30, <br/>
<a id="pl.84.28"></a><var>84.28</var>1997, or members of the legislature who were elected before July 1, 1997, and who, after <br/>
<a id="pl.84.29"></a><var>84.29</var>July 1, 1998, elect not to be members of the plan established by this chapter are covered <br/>
<a id="pl.84.30"></a><var>84.30</var>by the unclassified employees retirement program governed by chapter 352D.<br/>
<a id="pl.84.31"></a><var>84.31</var>    (c) The post-July 1, 1998, coverage election under paragraph (b) is irrevocable <br/>
<a id="pl.84.32"></a><var>84.32</var>and must be made on a form prescribed by the director. The second chance referendum <br/>
<a id="pl.84.33"></a><var>84.33</var>election under Laws 2002, chapter 392, article 15, also is irrevocable.<br/>
<a id="pl.85.1"></a><var>85.1</var>(d) Members of the legislature who are covered by the retirement plan governed by <br/>
<a id="pl.85.2"></a><var>85.2</var>this chapter on July 1, 2010, may, on or before the end of the member's seventh year of <br/>
<a id="pl.85.3"></a><var>85.3</var>legislative service or January 1, 2011, whichever is later, elect to have future retirement <br/>
<a id="pl.85.4"></a><var>85.4</var>coverage by either the general state employees retirement plan governed by chapter 352 <br/>
<a id="pl.85.5"></a><var>85.5</var>or the unclassified state employees retirement program governed by chapter 352D. The <br/>
<a id="pl.85.6"></a><var>85.6</var>election must be made on a form prescribed by the director and is irrevocable.<br/>
<br/>
<a id="bill.4.2.0"></a><a id="pl.85.7"></a><var>85.7</var>    Sec. 2. Minnesota Statutes 2008, section 352.01, subdivision 2a, is amended to read:<br/>
<a id="pl.85.8"></a><var>85.8</var>    Subd. 2a. <b>Included employees.</b> (a) "State employee" includes:<br/>
<a id="pl.85.9"></a><var>85.9</var>    (1) employees of the Minnesota Historical Society;<br/>
<a id="pl.85.10"></a><var>85.10</var>    (2) employees of the State Horticultural Society;<br/>
<a id="pl.85.11"></a><var>85.11</var>    (3) employees of the Minnesota Crop Improvement Association;<br/>
<a id="pl.85.12"></a><var>85.12</var>    (4) employees of the adjutant general who are paid from federal funds and who are <br/>
<a id="pl.85.13"></a><var>85.13</var>not covered by any federal civilian employees retirement system;<br/>
<a id="pl.85.14"></a><var>85.14</var>    (5) employees of the Minnesota State Colleges and Universities employed under the <br/>
<a id="pl.85.15"></a><var>85.15</var>university or college activities program;<br/>
<a id="pl.85.16"></a><var>85.16</var>    (6) currently contributing employees covered by the system who are temporarily <br/>
<a id="pl.85.17"></a><var>85.17</var>employed by the legislature during a legislative session or any currently contributing <br/>
<a id="pl.85.18"></a><var>85.18</var>employee employed for any special service as defined in subdivision 2b, clause (8);<br/>
<a id="pl.85.19"></a><var>85.19</var>    (7) employees of the legislature appointed without a limit on the duration of their <br/>
<a id="pl.85.20"></a><var>85.20</var>employment and persons employed or designated by the legislature or by a legislative <br/>
<a id="pl.85.21"></a><var>85.21</var>committee or commission or other competent authority to conduct a special inquiry, <br/>
<a id="pl.85.22"></a><var>85.22</var>investigation, examination, or installation;<br/>
<a id="pl.85.23"></a><var>85.23</var>    (8) trainees who are employed on a full-time established training program <br/>
<a id="pl.85.24"></a><var>85.24</var>performing the duties of the classified position for which they will be eligible to receive <br/>
<a id="pl.85.25"></a><var>85.25</var>immediate appointment at the completion of the training period;<br/>
<a id="pl.85.26"></a><var>85.26</var>    (9) employees of the Minnesota Safety Council;<br/>
<a id="pl.85.27"></a><var>85.27</var>    (10) any employees on authorized leave of absence from the Transit Operating <br/>
<a id="pl.85.28"></a><var>85.28</var>Division of the former Metropolitan Transit Commission who are employed by the <br/>
<a id="pl.85.29"></a><var>85.29</var>labor organization which is the exclusive bargaining agent representing employees of <br/>
<a id="pl.85.30"></a><var>85.30</var>the Transit Operating Division;<br/>
<a id="pl.85.31"></a><var>85.31</var>    (11) employees of the Metropolitan Council, Metropolitan Parks and Open Space <br/>
<a id="pl.85.32"></a><var>85.32</var>Commission, Metropolitan Sports Facilities Commission, Metropolitan Mosquito Control <br/>
<a id="pl.85.33"></a><var>85.33</var>Commission, or Metropolitan Radio Board unless excluded or covered by another public <br/>
<a id="pl.85.34"></a><var>85.34</var>pension fund or plan under section 
         <statute_ref>473.415, subdivision 3</statute_ref>;<br/>
<a id="pl.85.35"></a><var>85.35</var>    (12) judges of the Tax Court;<br/>
<a id="pl.86.1"></a><var>86.1</var>    (13) personnel employed on June 30, 1992, by the University of Minnesota in the <br/>
<a id="pl.86.2"></a><var>86.2</var>management, operation, or maintenance of its heating plant facilities, whose employment <br/>
<a id="pl.86.3"></a><var>86.3</var>transfers to an employer assuming operation of the heating plant facilities, so long as the <br/>
<a id="pl.86.4"></a><var>86.4</var>person is employed at the University of Minnesota heating plant by that employer or by its <br/>
<a id="pl.86.5"></a><var>86.5</var>successor organization;<br/>
<a id="pl.86.6"></a><var>86.6</var>    (14) seasonal help in the classified service employed by the Department of Revenue; <br/>
<a id="pl.86.7"></a><var>86.7</var>    (15) persons employed by the Department of Commerce as a peace officer in <br/>
<a id="pl.86.8"></a><var>86.8</var>the Insurance Fraud Prevention Division under section 
         <statute_ref>45.0135</statute_ref> who have attained the <br/>
<a id="pl.86.9"></a><var>86.9</var>mandatory retirement age specified in section 
         <statute_ref>43A.34, subdivision 4</statute_ref>;<br/>
<a id="pl.86.10"></a><var>86.10</var>    (16) employees of the University of Minnesota unless excluded under subdivision <br/>
<a id="pl.86.11"></a><var>86.11</var>2b, clause (3); <br/>
<a id="pl.86.12"></a><var>86.12</var>    (17) employees of the Middle Management Association whose employment began <br/>
<a id="pl.86.13"></a><var>86.13</var>after July 1, 2007, and to whom section 
         <statute_ref>352.029</statute_ref> does not apply; and<br/>
<a id="pl.86.14"></a><var>86.14</var>    (18) employees of the Minnesota Government Engineers Council to whom section <br/>
<statute_ref><a id="pl.86.15"></a><var>86.15</var>352.029
         </statute_ref> does not apply.; and<br/>
<a id="pl.86.16"></a><var>86.16</var>(19) employees who have elected to transfer past service to the general employees <br/>
<a id="pl.86.17"></a><var>86.17</var>retirement plan under section 352D.02, subdivision 1d, paragraph (a), or who have not <br/>
<a id="pl.86.18"></a><var>86.18</var>elected to transfer to the unclassified program under section 352D.02, subdivision 1d, <br/>
<a id="pl.86.19"></a><var>86.19</var>paragraph (b).<br/>
<a id="pl.86.20"></a><var>86.20</var>    (b) Employees specified in paragraph (a), clause (13), are included employees under <br/>
<a id="pl.86.21"></a><var>86.21</var>paragraph (a) if employer and employee contributions are made in a timely manner in the <br/>
<a id="pl.86.22"></a><var>86.22</var>amounts required by section 
         <statute_ref>352.04</statute_ref>. Employee contributions must be deducted from <br/>
<a id="pl.86.23"></a><var>86.23</var>salary. Employer contributions are the sole obligation of the employer assuming operation <br/>
<a id="pl.86.24"></a><var>86.24</var>of the University of Minnesota heating plant facilities or any successor organizations to <br/>
<a id="pl.86.25"></a><var>86.25</var>that employer.<br/>
<a id="pl.86.26"></a><var>86.26</var><b>EFFECTIVE DATE.</b>This section is effective June 30, 2010.<br/>
<br/>
<a id="bill.4.3.0"></a><a id="pl.86.27"></a><var>86.27</var>    Sec. 3. Minnesota Statutes 2009 Supplement, section 352.01, subdivision 2b, is <br/>
<a id="pl.86.28"></a><var>86.28</var>amended to read:<br/>
<a id="pl.86.29"></a><var>86.29</var>    Subd. 2b.  <b>Excluded employees.</b> "State employee" does not include: <br/>
<a id="pl.86.30"></a><var>86.30</var>    (1) students who are employed by the University of Minnesota, or the state colleges <br/>
<a id="pl.86.31"></a><var>86.31</var>and universities, unless approved for coverage by the Board of Regents of the University <br/>
<a id="pl.86.32"></a><var>86.32</var>of Minnesota or the Board of Trustees of the Minnesota State Colleges and Universities, <br/>
<a id="pl.86.33"></a><var>86.33</var>whichever is applicable; <br/>
<a id="pl.86.34"></a><var>86.34</var>    (2) employees who are eligible for membership in the state Teachers Retirement <br/>
<a id="pl.86.35"></a><var>86.35</var>Association, except employees of the Department of Education who have chosen or may <br/>
<a id="pl.87.1"></a><var>87.1</var>choose to be covered by the general state employees retirement plan of the Minnesota <br/>
<a id="pl.87.2"></a><var>87.2</var>State Retirement System instead of the Teachers Retirement Association; <br/>
<a id="pl.87.3"></a><var>87.3</var>    (3) employees of the University of Minnesota who are excluded from coverage by <br/>
<a id="pl.87.4"></a><var>87.4</var>action of the Board of Regents; <br/>
<a id="pl.87.5"></a><var>87.5</var>    (4) officers and enlisted personnel in the National Guard and the naval militia who <br/>
<a id="pl.87.6"></a><var>87.6</var>are assigned to permanent peacetime duty and who under federal law are or are required to <br/>
<a id="pl.87.7"></a><var>87.7</var>be members of a federal retirement system; <br/>
<a id="pl.87.8"></a><var>87.8</var>    (5) election officers; <br/>
<a id="pl.87.9"></a><var>87.9</var>    (6) persons who are engaged in public work for the state but who are employed <br/>
<a id="pl.87.10"></a><var>87.10</var>by contractors when the performance of the contract is authorized by the legislature or <br/>
<a id="pl.87.11"></a><var>87.11</var>other competent authority; <br/>
<a id="pl.87.12"></a><var>87.12</var>    (7) officers and employees of the senate, or of the house of representatives, or of a <br/>
<a id="pl.87.13"></a><var>87.13</var>legislative committee or commission who are temporarily employed; <br/>
<a id="pl.87.14"></a><var>87.14</var>    (8) receivers, jurors, notaries public, and court employees who are not in the judicial <br/>
<a id="pl.87.15"></a><var>87.15</var>branch as defined in section 
         <statute_ref>43A.02, subdivision 25</statute_ref>, except referees and adjusters <br/>
<a id="pl.87.16"></a><var>87.16</var>employed by the Department of Labor and Industry; <br/>
<a id="pl.87.17"></a><var>87.17</var>    (9) patient and inmate help who perform services in state charitable, penal, and <br/>
<a id="pl.87.18"></a><var>87.18</var>correctional institutions including the Minnesota Veterans Home; <br/>
<a id="pl.87.19"></a><var>87.19</var>    (10) persons who are employed for professional services where the service is <br/>
<a id="pl.87.20"></a><var>87.20</var>incidental to their regular professional duties and whose compensation is paid on a per <br/>
<a id="pl.87.21"></a><var>87.21</var>diem basis; <br/>
<a id="pl.87.22"></a><var>87.22</var>    (11) employees of the Sibley House Association; <br/>
<a id="pl.87.23"></a><var>87.23</var>    (12) the members of any state board or commission who serve the state intermittently <br/>
<a id="pl.87.24"></a><var>87.24</var>and are paid on a per diem basis; the secretary, secretary-treasurer, and treasurer of those <br/>
<a id="pl.87.25"></a><var>87.25</var>boards if their compensation is $5,000 or less per year, or, if they are legally prohibited <br/>
<a id="pl.87.26"></a><var>87.26</var>from serving more than three years; and the board of managers of the State Agricultural <br/>
<a id="pl.87.27"></a><var>87.27</var>Society and its treasurer unless the treasurer is also its full-time secretary; <br/>
<a id="pl.87.28"></a><var>87.28</var>    (13) state troopers and persons who are described in section 
         <statute_ref>352B.011, subdivision <br/>
<a id="pl.87.29"></a><var>87.29</var>10
         </statute_ref>, clauses (2) to (8); <br/>
<a id="pl.87.30"></a><var>87.30</var>    (14) temporary employees of the Minnesota State Fair who are employed on or <br/>
<a id="pl.87.31"></a><var>87.31</var>after July 1 for a period not to extend beyond October 15 of that year; and persons who <br/>
<a id="pl.87.32"></a><var>87.32</var>are employed at any time by the state fair administration for special events held on the <br/>
<a id="pl.87.33"></a><var>87.33</var>fairgrounds; <br/>
<a id="pl.87.34"></a><var>87.34</var>    (15) emergency employees who are in the classified service; except that if an <br/>
<a id="pl.87.35"></a><var>87.35</var>emergency employee, within the same pay period, becomes a provisional or probationary <br/>
<a id="pl.88.1"></a><var>88.1</var>employee on other than a temporary basis, the employee must be considered a "state <br/>
<a id="pl.88.2"></a><var>88.2</var>employee" retroactively to the beginning of the pay period; <br/>
<a id="pl.88.3"></a><var>88.3</var>    (16) temporary employees in the classified service, and temporary employees in the <br/>
<a id="pl.88.4"></a><var>88.4</var>unclassified service who are appointed for a definite period of not more than six months <br/>
<a id="pl.88.5"></a><var>88.5</var>and who are employed less than six months in any one-year period; <br/>
<a id="pl.88.6"></a><var>88.6</var>    (17) interns who are hired for six months or less and trainee employees, except <br/>
<a id="pl.88.7"></a><var>88.7</var>those listed in subdivision 2a, clause (8); <br/>
<a id="pl.88.8"></a><var>88.8</var>    (18) persons whose compensation is paid on a fee basis or as an independent <br/>
<a id="pl.88.9"></a><var>88.9</var>contractor; <br/>
<a id="pl.88.10"></a><var>88.10</var>    (19) state employees who are employed by the Board of Trustees of the Minnesota <br/>
<a id="pl.88.11"></a><var>88.11</var>State Colleges and Universities in unclassified positions enumerated in section 
         <statute_ref>43A.08, <br/>
<a id="pl.88.12"></a><var>88.12</var>subdivision 1
         </statute_ref>, clause (9); <br/>
<a id="pl.88.13"></a><var>88.13</var>    (20) state employees who in any year have credit for 12 months service as teachers <br/>
<a id="pl.88.14"></a><var>88.14</var>in the public schools of the state and as teachers are members of the Teachers Retirement <br/>
<a id="pl.88.15"></a><var>88.15</var>Association or a retirement system in St. Paul, Minneapolis, or Duluth, except for <br/>
<a id="pl.88.16"></a><var>88.16</var>incidental employment as a state employee that is not covered by one of the teacher <br/>
<a id="pl.88.17"></a><var>88.17</var>retirement associations or systems; <br/>
<a id="pl.88.18"></a><var>88.18</var>    (21) employees of the adjutant general who are employed on an unlimited <br/>
<a id="pl.88.19"></a><var>88.19</var>intermittent or temporary basis in the classified or unclassified service for the support of <br/>
<a id="pl.88.20"></a><var>88.20</var>Army and Air National Guard training facilities; <br/>
<a id="pl.88.21"></a><var>88.21</var>    (22) chaplains and nuns who are excluded from coverage under the federal Old <br/>
<a id="pl.88.22"></a><var>88.22</var>Age, Survivors, Disability, and Health Insurance Program for the performance of service <br/>
<a id="pl.88.23"></a><var>88.23</var>as specified in United States Code, title 42, section 410(a)(8)(A), as amended, if no <br/>
<a id="pl.88.24"></a><var>88.24</var>irrevocable election of coverage has been made under section 3121(r) of the Internal <br/>
<a id="pl.88.25"></a><var>88.25</var>Revenue Code of 1986, as amended through December 31, 1992; <br/>
<a id="pl.88.26"></a><var>88.26</var>    (23) examination monitors who are employed by departments, agencies, <br/>
<a id="pl.88.27"></a><var>88.27</var>commissions, and boards to conduct examinations required by law; <br/>
<a id="pl.88.28"></a><var>88.28</var>    (24) persons who are appointed to serve as members of fact-finding commissions or <br/>
<a id="pl.88.29"></a><var>88.29</var>adjustment panels, arbitrators, or labor referees under chapter 179; <br/>
<a id="pl.88.30"></a><var>88.30</var>    (25) temporary employees who are employed for limited periods under any state or <br/>
<a id="pl.88.31"></a><var>88.31</var>federal program for training or rehabilitation, including persons who are employed for <br/>
<a id="pl.88.32"></a><var>88.32</var>limited periods from areas of economic distress, but not including skilled and supervisory <br/>
<a id="pl.88.33"></a><var>88.33</var>personnel and persons having civil service status covered by the system; <br/>
<a id="pl.88.34"></a><var>88.34</var>    (26) full-time students who are employed by the Minnesota Historical Society <br/>
<a id="pl.88.35"></a><var>88.35</var>intermittently during part of the year and full-time during the summer months; <br/>
<a id="pl.89.1"></a><var>89.1</var>    (27) temporary employees who are appointed for not more than six months, of <br/>
<a id="pl.89.2"></a><var>89.2</var>the Metropolitan Council and of any of its statutory boards, if the board members are <br/>
<a id="pl.89.3"></a><var>89.3</var>appointed by the Metropolitan Council; <br/>
<a id="pl.89.4"></a><var>89.4</var>    (28) persons who are employed in positions designated by the Department of <br/>
<a id="pl.89.5"></a><var>89.5</var>Management and Budget as student workers; <br/>
<a id="pl.89.6"></a><var>89.6</var>    (29) members of trades who are employed by the successor to the Metropolitan <br/>
<a id="pl.89.7"></a><var>89.7</var>Waste Control Commission, who have trade union pension plan coverage under a <br/>
<a id="pl.89.8"></a><var>89.8</var>collective bargaining agreement, and who are first employed after June 1, 1977; <br/>
<a id="pl.89.9"></a><var>89.9</var>    (30) off-duty peace officers while employed by the Metropolitan Council; <br/>
<a id="pl.89.10"></a><var>89.10</var>    (31) persons who are employed as full-time police officers by the Metropolitan <br/>
<a id="pl.89.11"></a><var>89.11</var>Council and as police officers are members of the public employees police and fire fund; <br/>
<a id="pl.89.12"></a><var>89.12</var>    (32) persons who are employed as full-time firefighters by the Department of Military <br/>
<a id="pl.89.13"></a><var>89.13</var>Affairs and as firefighters are members of the public employees police and fire fund; <br/>
<a id="pl.89.14"></a><var>89.14</var>    (33) foreign citizens with who are employed under a work permit of less than three <br/>
<a id="pl.89.15"></a><var>89.15</var>years, or an H-1b/JV visa valid for less than three years of employment, unless notice of <br/>
<a id="pl.89.16"></a><var>89.16</var>extension is supplied which allows them to work for three or more years as of the date <br/>
<a id="pl.89.17"></a><var>89.17</var>that the extension is granted, in which case they are eligible for coverage from the date <br/>
<a id="pl.89.18"></a><var>89.18</var>extended; and <br/>
<a id="pl.89.19"></a><var>89.19</var>    (34) persons who are employed by the Board of Trustees of the Minnesota State <br/>
<a id="pl.89.20"></a><var>89.20</var>Colleges and Universities and who elected to remain members of the Public Employees <br/>
<a id="pl.89.21"></a><var>89.21</var>Retirement Association or the Minneapolis Employees Retirement Fund, whichever <br/>
<a id="pl.89.22"></a><var>89.22</var>applies, under Minnesota Statutes 1994, section 
         <statute_ref>136C.75</statute_ref>.; and <br/>
<a id="pl.89.23"></a><var>89.23</var>(35) employees who have elected to transfer service to the unclassified program <br/>
<a id="pl.89.24"></a><var>89.24</var>under section 352D.02, subdivision 1d, paragraph (b).<br/>
<a id="pl.89.25"></a><var>89.25</var><b>EFFECTIVE DATE.</b>This section is effective June 30, 2010.<br/>
<br/>
<a id="bill.4.4.0"></a><a id="pl.89.26"></a><var>89.26</var>    Sec. 4. Minnesota Statutes 2008, section 352D.015, subdivision 4, is amended to read:<br/>
<a id="pl.89.27"></a><var>89.27</var>    Subd. 4. <b>General fund.</b> "General fund" means the general state employees <br/>
<a id="pl.89.28"></a><var>89.28</var>retirement fund except the moneys for the unclassified program under chapter 352.<br/>
<a id="pl.89.29"></a><var>89.29</var><b>EFFECTIVE DATE.</b>This section is effective June 30, 2010.<br/>
<br/>
<a id="bill.4.5.0"></a><a id="pl.89.30"></a><var>89.30</var>    Sec. 5. Minnesota Statutes 2008, section 352D.015, is amended by adding a <br/>
<a id="pl.89.31"></a><var>89.31</var>subdivision to read:<br/>
<a id="pl.89.32"></a><var>89.32</var>    Subd. 4a. <b>General employees retirement plan.</b> "General employees retirement <br/>
<a id="pl.89.33"></a><var>89.33</var>plan" means the general state employees retirement plan under chapter 352.<br/>
<a id="pl.90.1"></a><var>90.1</var><b>EFFECTIVE DATE.</b>This section is effective June 30, 2010.<br/>
<br/>
<a id="bill.4.6.0"></a><a id="pl.90.2"></a><var>90.2</var>    Sec. 6. Minnesota Statutes 2008, section 352D.015, subdivision 9, is amended to read:<br/>
<a id="pl.90.3"></a><var>90.3</var>    Subd. 9. <b>Value.</b> "Value" means cash value at the end of the month following receipt <br/>
<a id="pl.90.4"></a><var>90.4</var>of an application. If no application is required, "value" means the cash value at the end <br/>
<a id="pl.90.5"></a><var>90.5</var>of the month in which the event necessitating the transfer occurs the market value of the <br/>
<a id="pl.90.6"></a><var>90.6</var>account at the end of the United States investment market day.<br/>
<a id="pl.90.7"></a><var>90.7</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2010.<br/>
<br/>
<a id="bill.4.7.0"></a><a id="pl.90.8"></a><var>90.8</var>    Sec. 7. Minnesota Statutes 2008, section 352D.02, subdivision 1, is amended to read:<br/>
<a id="pl.90.9"></a><var>90.9</var>    Subdivision 1. <b>Coverage.</b>  (a) Employees enumerated in paragraph (b), clause <br/>
<a id="pl.90.10"></a><var>90.10</var>(1), are participants in the unclassified program under this chapter. Persons referenced <br/>
<a id="pl.90.11"></a><var>90.11</var>in paragraph (b), clause (15), are participants in the unclassified program under this <br/>
<a id="pl.90.12"></a><var>90.12</var>chapter for judicial employment in excess of the service credit limit in section 490.121, <br/>
<a id="pl.90.13"></a><var>90.13</var>subdivision 22. Employees enumerated in paragraph (c) (b), clauses (2), (3), (4), (6) to <br/>
<a id="pl.90.14"></a><var>90.14</var>(14), and (16) to (18), clauses (2) to (14) and (16) to (18), if they are in the unclassified <br/>
<a id="pl.90.15"></a><var>90.15</var>service of the state or Metropolitan Council and are eligible for coverage under the general <br/>
<a id="pl.90.16"></a><var>90.16</var>state employees retirement plan under chapter 352, are participants in the unclassified <br/>
<a id="pl.90.17"></a><var>90.17</var>program under this chapter unless the employee gives notice to the executive director of <br/>
<a id="pl.90.18"></a><var>90.18</var>the Minnesota State Retirement System within one year following the commencement <br/>
<a id="pl.90.19"></a><var>90.19</var>of employment in the unclassified service that the employee desires coverage under the <br/>
<a id="pl.90.20"></a><var>90.20</var>general state employees retirement plan. For the purposes of this chapter, an employee <br/>
<a id="pl.90.21"></a><var>90.21</var>who does not file notice with the executive director is deemed to have exercised the option <br/>
<a id="pl.90.22"></a><var>90.22</var>to participate in the unclassified program.<br/>
<a id="pl.90.23"></a><var>90.23</var>    (b) Persons referenced in paragraph (c), clause (5), are participants in the unclassified <br/>
<a id="pl.90.24"></a><var>90.24</var>program under this chapter unless the person was eligible to elect different coverage under <br/>
<a id="pl.90.25"></a><var>90.25</var>section 
<statute_ref>3A.07</statute_ref> and elected retirement coverage by the applicable alternative retirement <br/>
<a id="pl.90.26"></a><var>90.26</var>plan. Persons referenced in paragraph (c), clause (15), are participants in the unclassified <br/>
<a id="pl.90.27"></a><var>90.27</var>program under this chapter for judicial employment in excess of the service credit limit in <br/>
<a id="pl.90.28"></a><var>90.28</var>section 
<statute_ref>490.121, subdivision 22</statute_ref>.<br/>
<a id="pl.90.29"></a><var>90.29</var>    (c) (b) Enumerated employees and referenced persons are:<br/>
<a id="pl.90.30"></a><var>90.30</var>    (1) the governor, the lieutenant governor, the secretary of state, the state auditor, <br/>
<a id="pl.90.31"></a><var>90.31</var>and the attorney general;<br/>
<a id="pl.90.32"></a><var>90.32</var>    (2) an employee in the Office of the Governor, Lieutenant Governor, Secretary <br/>
<a id="pl.90.33"></a><var>90.33</var>of State, State Auditor, Attorney General;<br/>
<a id="pl.90.34"></a><var>90.34</var>    (3) an employee of the State Board of Investment;<br/>
<a id="pl.91.1"></a><var>91.1</var>    (4) the head of a department, division, or agency created by statute in the unclassified <br/>
<a id="pl.91.2"></a><var>91.2</var>service, an acting department head subsequently appointed to the position, or an employee <br/>
<a id="pl.91.3"></a><var>91.3</var>enumerated in section 
         <statute_ref>15A.0815</statute_ref> or 
         <statute_ref>15A.083, subdivision 4</statute_ref>;<br/>
<a id="pl.91.4"></a><var>91.4</var>    (5) a member of the legislature;<br/>
<a id="pl.91.5"></a><var>91.5</var>    (6) a full-time unclassified employee of the legislature or a commission or agency of <br/>
<a id="pl.91.6"></a><var>91.6</var>the legislature who is appointed without a limit on the duration of the employment or a <br/>
<a id="pl.91.7"></a><var>91.7</var>temporary legislative employee having shares in the supplemental retirement fund as a <br/>
<a id="pl.91.8"></a><var>91.8</var>result of former employment covered by this chapter, whether or not eligible for coverage <br/>
<a id="pl.91.9"></a><var>91.9</var>under the Minnesota State Retirement System;<br/>
<a id="pl.91.10"></a><var>91.10</var>    (7) a person who is employed in a position established under section 
         <statute_ref>43A.08, <br/>
<a id="pl.91.11"></a><var>91.11</var>subdivision 1
         </statute_ref>, clause (3), or in a position authorized under a statute creating or establishing <br/>
<a id="pl.91.12"></a><var>91.12</var>a department or agency of the state, which is at the deputy or assistant head of department <br/>
<a id="pl.91.13"></a><var>91.13</var>or agency or director level;<br/>
<a id="pl.91.14"></a><var>91.14</var>    (8) the regional administrator, or executive director of the Metropolitan Council, <br/>
<a id="pl.91.15"></a><var>91.15</var>general counsel, division directors, operations managers, and other positions as designated <br/>
<a id="pl.91.16"></a><var>91.16</var>by the council, all of which may not exceed 27 positions at the council and the chair;<br/>
<a id="pl.91.17"></a><var>91.17</var>    (9) the executive director, associate executive director, and not to exceed nine <br/>
<a id="pl.91.18"></a><var>91.18</var>positions of the Minnesota Office of Higher Education in the unclassified service, as <br/>
<a id="pl.91.19"></a><var>91.19</var>designated by the Minnesota Office of Higher Education before January 1, 1992, or <br/>
<a id="pl.91.20"></a><var>91.20</var>subsequently redesignated with the approval of the board of directors of the Minnesota <br/>
<a id="pl.91.21"></a><var>91.21</var>State Retirement System, unless the person has elected coverage by the individual <br/>
<a id="pl.91.22"></a><var>91.22</var>retirement account plan under chapter 354B;<br/>
<a id="pl.91.23"></a><var>91.23</var>    (10) the clerk of the appellate courts appointed under article VI, section 2, of the <br/>
<a id="pl.91.24"></a><var>91.24</var>Constitution of the state of Minnesota, the state court administrator and judicial district <br/>
<a id="pl.91.25"></a><var>91.25</var>administrators;<br/>
<a id="pl.91.26"></a><var>91.26</var>    (11) the chief executive officers of correctional facilities operated by the Department <br/>
<a id="pl.91.27"></a><var>91.27</var>of Corrections and of hospitals and nursing homes operated by the Department of Human <br/>
<a id="pl.91.28"></a><var>91.28</var>Services;<br/>
<a id="pl.91.29"></a><var>91.29</var>    (12) an employee whose principal employment is at the state ceremonial house;<br/>
<a id="pl.91.30"></a><var>91.30</var>    (13) an employee of the Agricultural Utilization Research Institute;<br/>
<a id="pl.91.31"></a><var>91.31</var>    (14) an employee of the State Lottery who is covered by the managerial plan <br/>
<a id="pl.91.32"></a><var>91.32</var>established under section 
         <statute_ref>43A.18, subdivision 3</statute_ref>; <br/>
<a id="pl.91.33"></a><var>91.33</var>    (15) a judge who has exceeded the service credit limit in section 
         <statute_ref>490.121, <br/>
<a id="pl.91.34"></a><var>91.34</var>subdivision 22
         </statute_ref>;<br/>
<a id="pl.91.35"></a><var>91.35</var>    (16) an employee of Enterprise Minnesota, Inc.;<br/>
<a id="pl.92.1"></a><var>92.1</var>    (17) a person employed by the Minnesota State Colleges and Universities as faculty <br/>
<a id="pl.92.2"></a><var>92.2</var>or in an eligible unclassified administrative position as defined in section 
         <statute_ref>354B.20</statute_ref>, <br/>
<a id="pl.92.3"></a><var>92.3</var>subdivision 6, who was employed by the former state university or the former community <br/>
<a id="pl.92.4"></a><var>92.4</var>college system before May 1, 1995, and elected unclassified program coverage prior to <br/>
<a id="pl.92.5"></a><var>92.5</var>May 1, 1995; and<br/>
<a id="pl.92.6"></a><var>92.6</var>    (18) a person employed by the Minnesota State Colleges and Universities who <br/>
<a id="pl.92.7"></a><var>92.7</var>was employed in state service before July 1, 1995, who subsequently is employed in an <br/>
<a id="pl.92.8"></a><var>92.8</var>eligible unclassified administrative position as defined in section 354B.20, subdivision <br/>
<a id="pl.92.9"></a><var>92.9</var>6, and who elects coverage by the unclassified program.<br/>
<br/>
<a id="bill.4.8.0"></a><a id="pl.92.10"></a><var>92.10</var>    Sec. 8. Minnesota Statutes 2008, section 352D.02, subdivision 1c, is amended to read:<br/>
<a id="pl.92.11"></a><var>92.11</var>    Subd. 1c. <b>Transfer of contributions.</b> An employee covered by the regular general <br/>
<a id="pl.92.12"></a><var>92.12</var>employees retirement plan who is subsequently employed as a full-time unclassified <br/>
<a id="pl.92.13"></a><var>92.13</var>employee of the legislature or any commission or agency of the legislature without a <br/>
<a id="pl.92.14"></a><var>92.14</var>limit on the duration of the employment may elect to transfer accumulated employee and <br/>
<a id="pl.92.15"></a><var>92.15</var>matching employer contributions, as provided in section 
         <statute_ref>352D.03</statute_ref>. <br/>
<a id="pl.92.16"></a><var>92.16</var><b>EFFECTIVE DATE.</b>This section is effective June 30, 2010.<br/>
<br/>
<a id="bill.4.9.0"></a><a id="pl.92.17"></a><var>92.17</var>    Sec. 9. Minnesota Statutes 2008, section 352D.02, subdivision 2, is amended to read:<br/>
<a id="pl.92.18"></a><var>92.18</var>    Subd. 2. <b>Coverage upon employment change.</b> A person becoming a participant <br/>
<a id="pl.92.19"></a><var>92.19</var>in the unclassified program prior to July 1, 2010, by virtue of employment in a position <br/>
<a id="pl.92.20"></a><var>92.20</var>specified in subdivision 1, clause (4), and remaining in the unclassified service shall <br/>
<a id="pl.92.21"></a><var>92.21</var>remain a participant in the program even though the position the person occupies is <br/>
<a id="pl.92.22"></a><var>92.22</var>deleted from any of the sections referenced in subdivision 1, clause (4), by subsequent <br/>
<a id="pl.92.23"></a><var>92.23</var>amendment, except that a person shall is not be eligible to elect the unclassified program <br/>
<a id="pl.92.24"></a><var>92.24</var>after separation from unclassified service if on the return of the person to service, that <br/>
<a id="pl.92.25"></a><var>92.25</var>position is not specified in subdivision 1, clause (4). Any person employed in a position <br/>
<a id="pl.92.26"></a><var>92.26</var>specified in subdivision 1 shall cease to participate in the unclassified program in the event <br/>
<a id="pl.92.27"></a><var>92.27</var>that the position is placed in the classified service.<br/>
<a id="pl.92.28"></a><var>92.28</var><b>EFFECTIVE DATE.</b>This section is effective June 30, 2010.<br/>
<br/>
<a id="bill.4.10.0"></a><a id="pl.92.29"></a><var>92.29</var>    Sec. 10. Minnesota Statutes 2008, section 352D.02, subdivision 3, is amended to read:<br/>
<a id="pl.92.30"></a><var>92.30</var>    Subd. 3. <b>Transfer to general </b><b>employees retirement </b><b>plan.</b> (a) An employee <br/>
<a id="pl.92.31"></a><var>92.31</var>referred to in subdivision 1, paragraph (b), clauses (2) to (4), (6) to (14), and (16) to <br/>
<a id="pl.92.32"></a><var>92.32</var>(18), who is credited with employee shares in the unclassified program, after acquiring <br/>
<a id="pl.93.1"></a><var>93.1</var>and who has credit for ten years of allowable service and, not later than one month <br/>
<a id="pl.93.2"></a><var>93.2</var>following the termination of covered employment, may elect to terminate participation <br/>
<a id="pl.93.3"></a><var>93.3</var>in the unclassified program and be covered by the general employees retirement plan by <br/>
<a id="pl.93.4"></a><var>93.4</var>filing a written election with the executive director. if the employee was employed before <br/>
<a id="pl.93.5"></a><var>93.5</var>July 1, 2010, and has at least ten years of allowable service as of the date of the election or <br/>
<a id="pl.93.6"></a><var>93.6</var>if the employee was employed after June 30, 2010, and has no more than seven years of <br/>
<a id="pl.93.7"></a><var>93.7</var>allowable service as of the date of the election.<br/>
<a id="pl.93.8"></a><var>93.8</var>(b) A person referred to in subdivision 1, paragraph (b), clause (5), who is credited <br/>
<a id="pl.93.9"></a><var>93.9</var>with employee shares in the unclassified program, and who has credit for allowable <br/>
<a id="pl.93.10"></a><var>93.10</var>service, prior to the termination of service, may elect to terminate participation in the <br/>
<a id="pl.93.11"></a><var>93.11</var>unclassified program and be covered by the general employees retirement plan by filing <br/>
<a id="pl.93.12"></a><var>93.12</var>a written election with the executive director if the person first became covered by the <br/>
<a id="pl.93.13"></a><var>93.13</var>unclassified program after June 30, 2010, and has no more than seven years of allowable <br/>
<a id="pl.93.14"></a><var>93.14</var>service or if the person first became covered by the unclassified program before July 1, <br/>
<a id="pl.93.15"></a><var>93.15</var>2010, and makes the election to transfer on or before January 1, 2011.<br/>
<a id="pl.93.16"></a><var>93.16</var>(c) If the transfer election is made, the executive director shall then redeem the <br/>
<a id="pl.93.17"></a><var>93.17</var>employee's total shares and shall credit to the employee's account in the general employees <br/>
<a id="pl.93.18"></a><var>93.18</var>retirement plan the amount of contributions that would have been so credited had the <br/>
<a id="pl.93.19"></a><var>93.19</var>employee been covered by the general employees retirement plan during the employee's <br/>
<a id="pl.93.20"></a><var>93.20</var>entire covered employment or elective state service. The balance of money so redeemed <br/>
<a id="pl.93.21"></a><var>93.21</var>and not credited to the employee's account shall must be transferred to the general <br/>
<a id="pl.93.22"></a><var>93.22</var>employees retirement plan retirement fund, except that (1) the employee contribution paid <br/>
<a id="pl.93.23"></a><var>93.23</var>to the unclassified program must be compared to (2) the employee contributions that <br/>
<a id="pl.93.24"></a><var>93.24</var>would have been paid to the general employees retirement plan for the comparable period, <br/>
<a id="pl.93.25"></a><var>93.25</var>if the individual had been covered by that plan. If clause (1) is greater than clause (2), <br/>
<a id="pl.93.26"></a><var>93.26</var>the difference must be refunded to the employee as provided in section 
         <statute_ref>352.22</statute_ref>. If clause <br/>
<a id="pl.93.27"></a><var>93.27</var>(2) is greater than clause (1), the difference must be paid by the employee within six <br/>
<a id="pl.93.28"></a><var>93.28</var>months of electing general employees retirement plan coverage or before the effective <br/>
<a id="pl.93.29"></a><var>93.29</var>date of the annuity, whichever is sooner. <br/>
<a id="pl.93.30"></a><var>93.30</var>    (b) (d) An election under paragraph (a) or (b) to transfer coverage to the general <br/>
<a id="pl.93.31"></a><var>93.31</var>employees retirement plan is irrevocable during any period of covered employment.<br/>
<a id="pl.93.32"></a><var>93.32</var>(e) A person referenced in subdivision 1, paragraph (b), clause (1) or (15), who is <br/>
<a id="pl.93.33"></a><var>93.33</var>credited with employee shares in the unclassified program is not permitted to terminate <br/>
<a id="pl.93.34"></a><var>93.34</var>participation in the unclassified program and be covered by the general employees <br/>
<a id="pl.93.35"></a><var>93.35</var>retirement plan.<br/>
<a id="pl.93.36"></a><var>93.36</var><b>EFFECTIVE DATE.</b>This section is effective June 30, 2010.<br/>
<br/>
<a id="bill.4.11.0"></a><a id="pl.94.1"></a><var>94.1</var>    Sec. 11. Minnesota Statutes 2008, section 352D.03, is amended to read:<br/>
<a id="pl.94.2"></a><var>94.2</var><b>352D.03 TRANSFER OF ASSETS.</b><br/>
<a id="pl.94.3"></a><var>94.3</var>Unless an eligible employee enumerated in section 
         <statute_ref>352D.02, subdivision 1</statute_ref>, has <br/>
<a id="pl.94.4"></a><var>94.4</var>elected coverage under the individual retirement account plan under chapter 354B, a <br/>
<a id="pl.94.5"></a><var>94.5</var>sum of money representing the assets credited to each employee exercising the option <br/>
<a id="pl.94.6"></a><var>94.6</var>contained in section 
<statute_ref>352D.02</statute_ref>, plus an equal employer contribution together with interest <br/>
<a id="pl.94.7"></a><var>94.7</var>for an employee exercising an option under section 352D.02, an amount equal to the <br/>
<a id="pl.94.8"></a><var>94.8</var>employee and employer contributions for the employment period at the applicable <br/>
<a id="pl.94.9"></a><var>94.9</var>preretirement interest actuarial assumption rate during this period plus six percent interest, <br/>
<a id="pl.94.10"></a><var>94.10</var>compounded annually, must be used for the purchase of shares on behalf of each employee <br/>
<a id="pl.94.11"></a><var>94.11</var>in the accounts of the supplemental retirement fund established by section 
         <statute_ref>11A.17</statute_ref>.<br/>
<a id="pl.94.12"></a><var>94.12</var><b>EFFECTIVE DATE.</b>This section is effective June 30, 2010.<br/>
<br/>
<a id="bill.4.12.0"></a><a id="pl.94.13"></a><var>94.13</var>    Sec. 12. Minnesota Statutes 2008, section 352D.04, subdivision 1, is amended to read:<br/>
<a id="pl.94.14"></a><var>94.14</var>    Subdivision 1. <b>Investment options.</b> (a) A person exercising an option to participate <br/>
<a id="pl.94.15"></a><var>94.15</var>in the retirement program provided by this chapter may elect to purchase shares in one or <br/>
<a id="pl.94.16"></a><var>94.16</var>a combination of the income share account, the growth share account, the international <br/>
<a id="pl.94.17"></a><var>94.17</var>share account, the money market account, the bond market account, the fixed interest <br/>
<a id="pl.94.18"></a><var>94.18</var>account, or the common stock index account established in section 
         <statute_ref>11A.17</statute_ref>. The person <br/>
<a id="pl.94.19"></a><var>94.19</var>may elect to participate in one or more of the investment accounts in the fund by <br/>
<a id="pl.94.20"></a><var>94.20</var>specifying, on a form provided in a manner prescribed by the executive director, the <br/>
<a id="pl.94.21"></a><var>94.21</var>percentage of the person's contributions provided in subdivision 2 to be used to purchase <br/>
<a id="pl.94.22"></a><var>94.22</var>shares in each of the accounts. <br/>
<a id="pl.94.23"></a><var>94.23</var>(b) A participant may indicate in writing on forms provided, in a manner prescribed <br/>
<a id="pl.94.24"></a><var>94.24</var>by the Minnesota State Retirement System a choice of options executive director, choose <br/>
<a id="pl.94.25"></a><var>94.25</var>their investment allocation for subsequent purchases of shares. Until a different written <br/>
<a id="pl.94.26"></a><var>94.26</var>indication is made by the participant, the executive director shall purchase shares in the <br/>
<a id="pl.94.27"></a><var>94.27</var>supplemental fund as selected by the participant. If no initial option is chosen, 100 percent <br/>
<a id="pl.94.28"></a><var>94.28</var>income shares must be purchased for a participant. A change in choice of investment <br/>
<a id="pl.94.29"></a><var>94.29</var>option is effective no later than the first pay date first occurring after 30 days following the <br/>
<a id="pl.94.30"></a><var>94.30</var>receipt of the request for a change at the end of the most recent United States investment <br/>
<a id="pl.94.31"></a><var>94.31</var>market day.<br/>
<a id="pl.94.32"></a><var>94.32</var>(c) Shares in the fixed interest account attributable to any guaranteed investment <br/>
<a id="pl.94.33"></a><var>94.33</var>contract as of July 1, 1994, may not be withdrawn from the fund or transferred to another <br/>
<a id="pl.94.34"></a><var>94.34</var>account until the guaranteed investment contract has expired, unless the participant <br/>
<a id="pl.95.1"></a><var>95.1</var>qualifies for withdrawal under section 
<statute_ref>352D.05</statute_ref> or for benefit payments under sections <br/>
<a id="pl.95.2"></a><var>95.2</var><statute_ref>352D.06</statute_ref> to 
<statute_ref>352D.075</statute_ref>. <br/>
<a id="pl.95.3"></a><var>95.3</var>(d) (c) A participant or former participant may also change the investment options <br/>
<a id="pl.95.4"></a><var>95.4</var>selected for all or a portion of the participant's shares previously purchased in accounts, <br/>
<a id="pl.95.5"></a><var>95.5</var>subject to the provisions of paragraph (c) concerning the fixed interest account. Changes <br/>
<a id="pl.95.6"></a><var>95.6</var>in investment options for the participant's shares must be effected as soon as cash flow to <br/>
<a id="pl.95.7"></a><var>95.7</var>an account practically permits, but not later than six months after the requested change <br/>
<a id="pl.95.8"></a><var>95.8</var>trading restrictions imposed on the investment option.<br/>
<a id="pl.95.9"></a><var>95.9</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2010.<br/>
<br/>
<a id="bill.4.13.0"></a><a id="pl.95.10"></a><var>95.10</var>    Sec. 13. Minnesota Statutes 2008, section 352D.04, subdivision 2, is amended to read:<br/>
<a id="pl.95.11"></a><var>95.11</var>     Subd. 2. <b>Contribution rates.</b>  (a) The money used to purchase shares under this <br/>
<a id="pl.95.12"></a><var>95.12</var>section is the employee and employer contributions provided in this subdivision.<br/>
<a id="pl.95.13"></a><var>95.13</var>     (b) The employee contribution is an amount equal to four the percent of salary <br/>
<a id="pl.95.14"></a><var>95.14</var>specified in section 352.04, subdivision 2, or 352.045, subdivision 3.<br/>
<a id="pl.95.15"></a><var>95.15</var>     (c) The employer contribution is an amount equal to six percent of salary.<br/>
<a id="pl.95.16"></a><var>95.16</var>     (d) For members of the legislature, the contributions under this subdivision also must <br/>
<a id="pl.95.17"></a><var>95.17</var>be made on per diem payments received during a regular or special legislative session, but <br/>
<a id="pl.95.18"></a><var>95.18</var>may not be made on per diem payments received outside of a regular or special legislative <br/>
<a id="pl.95.19"></a><var>95.19</var>session, on the additional compensation attributable to a leadership position under section <br/>
<statute_ref><a id="pl.95.20"></a><var>95.20</var>3.099
         </statute_ref>, subdivision 3, living expense payments under section 
         <statute_ref>3.101</statute_ref>, or special session <br/>
<a id="pl.95.21"></a><var>95.21</var>living expense payments under section 
         <statute_ref>3.103</statute_ref>.<br/>
<a id="pl.95.22"></a><var>95.22</var>    (e) For a judge who is a member of the unclassified plan under section 
         <statute_ref>352D.02</statute_ref>, <br/>
<a id="pl.95.23"></a><var>95.23</var>subdivision 1, paragraph (c), clause (16), the employee contribution rate is eight percent <br/>
<a id="pl.95.24"></a><var>95.24</var>of salary, and there is no employer contribution.<br/>
<a id="pl.95.25"></a><var>95.25</var>(f) These contributions must be made in the manner provided in section 
         <statute_ref>352.04</statute_ref>, <br/>
<a id="pl.95.26"></a><var>95.26</var>subdivisions 4, 5, and 6.<br/>
<a id="pl.95.27"></a><var>95.27</var><b>EFFECTIVE DATE.</b>This section is effective the first day of the first full pay <br/>
<a id="pl.95.28"></a><var>95.28</var>period beginning after July 1, 2010.<br/>
<br/>
<a id="bill.4.14.0"></a><a id="pl.95.29"></a><var>95.29</var>    Sec. 14. Minnesota Statutes 2008, section 352D.05, subdivision 3, is amended to read:<br/>
<a id="pl.95.30"></a><var>95.30</var>    Subd. 3. <b>Full or partial withdrawal.</b> After termination of covered employment <br/>
<a id="pl.95.31"></a><var>95.31</var>or at any time thereafter, a participant is entitled, upon application, to withdraw the cash <br/>
<a id="pl.95.32"></a><var>95.32</var>value of the participant's total shares or leave such shares on deposit with the supplemental <br/>
<a id="pl.95.33"></a><var>95.33</var>retirement fund. The account is valued at the end of the month in which most recent <br/>
<a id="pl.96.1"></a><var>96.1</var>United States investment market day following receipt of the application for withdrawal is <br/>
<a id="pl.96.2"></a><var>96.2</var>made. Shares not withdrawn remain on deposit with the supplemental retirement fund <br/>
<a id="pl.96.3"></a><var>96.3</var>until the former participant becomes at least 55 years old, and applies for an annuity under <br/>
<a id="pl.96.4"></a><var>96.4</var>section 
         <statute_ref>352D.06, subdivision 1</statute_ref>.  <br/>
<a id="pl.96.5"></a><var>96.5</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2010.<br/>
<br/>
<a id="bill.4.15.0"></a><a id="pl.96.6"></a><var>96.6</var>    Sec. 15. Minnesota Statutes 2008, section 352D.05, subdivision 4, is amended to read:<br/>
<a id="pl.96.7"></a><var>96.7</var>    Subd. 4. <b>Repayment of refund.</b> (a) A participant in the unclassified program may <br/>
<a id="pl.96.8"></a><var>96.8</var>repay regular refunds taken under section 
         <statute_ref>352.22</statute_ref>, as provided in section 
         <statute_ref>352.23</statute_ref>.<br/>
<a id="pl.96.9"></a><var>96.9</var>(b) A participant in the unclassified program or an employee covered by the general <br/>
<a id="pl.96.10"></a><var>96.10</var>employees retirement plan who has withdrawn the value of the total shares may repay <br/>
<a id="pl.96.11"></a><var>96.11</var>the refund taken and thereupon restore the service credit, rights and benefits forfeited by <br/>
<a id="pl.96.12"></a><var>96.12</var>paying into the fund the amount refunded plus interest at an annual rate of 8.5 percent <br/>
<a id="pl.96.13"></a><var>96.13</var>compounded annually from the date that the refund was taken until the date that the refund <br/>
<a id="pl.96.14"></a><var>96.14</var>is repaid. If the participant had withdrawn only the employee shares as permitted under <br/>
<a id="pl.96.15"></a><var>96.15</var>prior laws, repayment must be pro rata.<br/>
<a id="pl.96.16"></a><var>96.16</var>(c) Except as provided in section 
         <statute_ref>356.441</statute_ref>, the repayment of a refund under this <br/>
<a id="pl.96.17"></a><var>96.17</var>section must be made in a lump sum.<br/>
<a id="pl.96.18"></a><var>96.18</var><b>EFFECTIVE DATE.</b>This section is effective June 30, 2010.<br/>
<br/>
<a id="bill.4.16.0"></a><a id="pl.96.19"></a><var>96.19</var>    Sec. 16. Minnesota Statutes 2008, section 352D.06, subdivision 3, is amended to read:<br/>
<a id="pl.96.20"></a><var>96.20</var>    Subd. 3. <b>Accrual date.</b> An annuity under this section accrues the first day of the <br/>
<a id="pl.96.21"></a><var>96.21</var>first full month after an application is received or the day following termination of state <br/>
<a id="pl.96.22"></a><var>96.22</var>service, whichever is later. The account must be valued and redeemed on the later of the <br/>
<a id="pl.96.23"></a><var>96.23</var>end of the month of termination of covered employment, or the end of the month of receipt <br/>
<a id="pl.96.24"></a><var>96.24</var>of the annuity application for the purpose of computing the annuity day following receipt <br/>
<a id="pl.96.25"></a><var>96.25</var>of the application or the day following termination, whichever is later. The benefit must be <br/>
<a id="pl.96.26"></a><var>96.26</var>based on the value of the account the day following receipt of the application or the date of <br/>
<a id="pl.96.27"></a><var>96.27</var>termination, whichever is later, plus any contributions and interest received after that date.<br/>
<a id="pl.96.28"></a><var>96.28</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2010.<br/>
<br/>
<a id="bill.4.17.0"></a><a id="pl.96.29"></a><var>96.29</var>    Sec. 17. Minnesota Statutes 2008, section 352D.065, subdivision 3, is amended to read:<br/>
<a id="pl.96.30"></a><var>96.30</var>    Subd. 3. <b>Annuity payment.</b> The annuity payable under this section shall begin <br/>
<a id="pl.96.31"></a><var>96.31</var>begins to accrue the first day of the month following the date of disability  receipt of the <br/>
<a id="pl.96.32"></a><var>96.32</var>application or the day after termination, whichever is later, plus any contributions and <br/>
<a id="pl.97.1"></a><var>97.1</var>interest received after that date, and shall must be based on the participant's age when the <br/>
<a id="pl.97.2"></a><var>97.2</var>annuity begins to accrue. The shares shall must be valued as of the end of the month <br/>
<a id="pl.97.3"></a><var>97.3</var>following authorization of payments day on which the benefit accrues.<br/>
<a id="pl.97.4"></a><var>97.4</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2010.<br/>
<br/>
<a id="bill.4.18.0"></a><a id="pl.97.5"></a><var>97.5</var>    Sec. 18. Minnesota Statutes 2008, section 352D.09, subdivision 3, is amended to read:<br/>
<a id="pl.97.6"></a><var>97.6</var>    Subd. 3. <b>Prospectus.</b> (a) The executive director shall annually distribute make <br/>
<a id="pl.97.7"></a><var>97.7</var>available by electronic means to each participant the prospectus prepared by the <br/>
<a id="pl.97.8"></a><var>97.8</var>supplemental fund, by July 1 or when received from such fund, whichever is later, to <br/>
<a id="pl.97.9"></a><var>97.9</var>each participant in covered employment.<br/>
<a id="pl.97.10"></a><var>97.10</var>(b) Any participant may contact the Minnesota State Retirement System and request <br/>
<a id="pl.97.11"></a><var>97.11</var>a copy of the prospectus.<br/>
<a id="pl.97.12"></a><var>97.12</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2010.<br/>
<br/>
<a id="bill.4.19.0"></a><a id="pl.97.13"></a><var>97.13</var>    Sec. 19. Minnesota Statutes 2008, section 352D.09, subdivision 7, is amended to read:<br/>
<a id="pl.97.14"></a><var>97.14</var>    Subd. 7. <b>Administrative fees.</b> The board of directors shall establish a budget and <br/>
<a id="pl.97.15"></a><var>97.15</var>charge participants a reasonable fee to pay the administrative expenses of the unclassified <br/>
<a id="pl.97.16"></a><var>97.16</var>program. Fees cannot may not be charged on contributions and investment returns <br/>
<a id="pl.97.17"></a><var>97.17</var>attributable to contributions made before July 1, 1992. Annual total fees charged for plan <br/>
<a id="pl.97.18"></a><var>97.18</var>administration cannot exceed 10/100 of one percent of the contributions and investment <br/>
<a id="pl.97.19"></a><var>97.19</var>returns attributable to contributions made on or after July 1, 1992.<br/>
<a id="pl.97.20"></a><var>97.20</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2010.<br/>
<br/>
<a id="bill.5.0.0"></a>

<a id="pl.97.23"></a><var>97.23</var><b>ADMINISTRATIVE PROVISIONS</b><br/>

<a id="bill.5.1.0"></a><a id="pl.97.24"></a><var>97.24</var>    Section 1. Minnesota Statutes 2009 Supplement, section 353.01, subdivision 2, is <br/>
<a id="pl.97.25"></a><var>97.25</var>amended to read:<br/>
<a id="pl.97.26"></a><var>97.26</var>    Subd. 2. <b>Public employee.</b> "Public employee" means a governmental employee <br/>
<a id="pl.97.27"></a><var>97.27</var>or a public officer performing personal services for a governmental subdivision defined <br/>
<a id="pl.97.28"></a><var>97.28</var>in subdivision 6, whose salary is paid, in whole or in part, from revenue derived from <br/>
<a id="pl.97.29"></a><var>97.29</var>taxation, fees, assessments, or from other sources. For purposes of membership in the <br/>
<a id="pl.97.30"></a><var>97.30</var>association, the term includes the classes of persons described or listed in subdivision <br/>
<a id="pl.97.31"></a><var>97.31</var>2a and excludes the classes of persons listed in subdivision 2b. The term also includes <br/>
<a id="pl.98.1"></a><var>98.1</var>persons who elect association membership under subdivision 2d, paragraph (a), and <br/>
<a id="pl.98.2"></a><var>98.2</var>persons for whom the applicable governmental subdivision had elected association <br/>
<a id="pl.98.3"></a><var>98.3</var>membership under subdivision 2d, paragraph (b). The term excludes the classes of persons <br/>
<a id="pl.98.4"></a><var>98.4</var>listed in subdivision 2b for purposes of membership in the association.<br/>
<a id="pl.98.5"></a><var>98.5</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2010.<br/>
<br/>
<a id="bill.5.2.0"></a><a id="pl.98.6"></a><var>98.6</var>    Sec. 2. Minnesota Statutes 2009 Supplement, section 353.01, subdivision 2a, is <br/>
<a id="pl.98.7"></a><var>98.7</var>amended to read:<br/>
<a id="pl.98.8"></a><var>98.8</var>    Subd. 2a. <b>Included employees</b><b>; mandatory membership</b><b>.</b> (a) Public employees <br/>
<a id="pl.98.9"></a><var>98.9</var>whose salary from employment in one or more positions within one governmental <br/>
<a id="pl.98.10"></a><var>98.10</var>subdivision exceeds $425 in any month shall participate as members of the association. <br/>
<a id="pl.98.11"></a><var>98.11</var>If the salary is less than $425 in a subsequent month, the employee retains membership <br/>
<a id="pl.98.12"></a><var>98.12</var>eligibility. Eligible Public employees shall whose salary exceeds $425 in any month and <br/>
<a id="pl.98.13"></a><var>98.13</var>who are not specifically excluded under subdivision 2b or who have not been provided <br/>
<a id="pl.98.14"></a><var>98.14</var>an option to participate under subdivision 2d, whether individually or by action of the <br/>
<a id="pl.98.15"></a><var>98.15</var>governmental subdivision, must participate as members of the association with retirement <br/>
<a id="pl.98.16"></a><var>98.16</var>coverage by the public employees retirement plan or the public employees police and <br/>
<a id="pl.98.17"></a><var>98.17</var>fire retirement plan under this chapter, or the local government correctional employees <br/>
<a id="pl.98.18"></a><var>98.18</var>retirement plan under chapter 353E, whichever applies,. Membership commences as a <br/>
<a id="pl.98.19"></a><var>98.19</var>condition of their employment on the first day of their employment unless they or on the <br/>
<a id="pl.98.20"></a><var>98.20</var>first day that the eligibility criteria are met, whichever is later. Public employees include <br/>
<a id="pl.98.21"></a><var>98.21</var>but are not limited to:<br/>
<a id="pl.98.22"></a><var>98.22</var>    (1) are specifically excluded under subdivision 2b;<br/>
<a id="pl.98.23"></a><var>98.23</var>    (2) do not exercise their option to elect retirement coverage in the association as <br/>
<a id="pl.98.24"></a><var>98.24</var>provided in subdivision 2d, paragraph (a); or<br/>
<a id="pl.98.25"></a><var>98.25</var>    (3) are employees of the governmental subdivisions listed in subdivision 2d, <br/>
<a id="pl.98.26"></a><var>98.26</var>paragraph (b), where the governmental subdivision has not elected to participate as a <br/>
<a id="pl.98.27"></a><var>98.27</var>governmental subdivision covered by the association.<br/>
<a id="pl.98.28"></a><var>98.28</var>(1) persons whose salary meets the threshold in this paragraph from employment in <br/>
<a id="pl.98.29"></a><var>98.29</var>one or more positions within one governmental subdivision;<br/>
<a id="pl.98.30"></a><var>98.30</var>(2) elected county sheriffs;<br/>
<a id="pl.98.31"></a><var>98.31</var>(3) persons who are appointed, employed, or contracted to perform governmental <br/>
<a id="pl.98.32"></a><var>98.32</var>functions that by law or local ordinance are required of a public officer, including, but <br/>
<a id="pl.98.33"></a><var>98.33</var>not limited to:<br/>
<a id="pl.98.34"></a><var>98.34</var>(i) town and city clerk or treasurer;<br/>
<a id="pl.98.35"></a><var>98.35</var>(ii) county auditor, treasurer, or recorder;<br/>
<a id="pl.99.1"></a><var>99.1</var>(iii) city manager as defined in section 353.028 who does not exercise the option <br/>
<a id="pl.99.2"></a><var>99.2</var>provided under subdivision 2d; or<br/>
<a id="pl.99.3"></a><var>99.3</var>(iv) emergency management director, as provided under section 12.25;<br/>
<a id="pl.99.4"></a><var>99.4</var>(4) physicians under section 353D.01, subdivision 2, who do not elect public <br/>
<a id="pl.99.5"></a><var>99.5</var>employees defined contribution plan coverage under section 353D.02, subdivision 2;<br/>
<a id="pl.99.6"></a><var>99.6</var>(5) full-time employees of the Dakota County Agricultural Society; and<br/>
<a id="pl.99.7"></a><var>99.7</var>(6) employees of the Minneapolis Firefighters Relief Association or Minneapolis <br/>
<a id="pl.99.8"></a><var>99.8</var>Police Relief Association who are not excluded employees under subdivision 2b due <br/>
<a id="pl.99.9"></a><var>99.9</var>to coverage by the relief association pension plan and who elected general employee <br/>
<a id="pl.99.10"></a><var>99.10</var>retirement plan coverage before August 20, 2009.<br/>
<a id="pl.99.11"></a><var>99.11</var>    (b) A public employee or elected official who was a member of the association on <br/>
<a id="pl.99.12"></a><var>99.12</var>June 30, 2002, based on employment that qualified for membership coverage by the public <br/>
<a id="pl.99.13"></a><var>99.13</var>employees retirement plan or the public employees police and fire plan under this chapter, <br/>
<a id="pl.99.14"></a><var>99.14</var>or the local government correctional employees retirement plan under chapter 353E as of <br/>
<a id="pl.99.15"></a><var>99.15</var>June 30, 2002, retains that membership for the duration of the person's employment in that <br/>
<a id="pl.99.16"></a><var>99.16</var>position or incumbency in elected office. Except as provided in subdivision 28, the person <br/>
<a id="pl.99.17"></a><var>99.17</var>shall participate as a member until the employee or elected official terminates public <br/>
<a id="pl.99.18"></a><var>99.18</var>employment under subdivision 11a or terminates membership under subdivision 11b.<br/>
<a id="pl.99.19"></a><var>99.19</var>    (c) Public employees under paragraph (a) include:<br/>
<a id="pl.99.20"></a><var>99.20</var>(1) physicians under section 
<statute_ref>353D.01</statute_ref>, subdivision 2, who do not elect public <br/>
<a id="pl.99.21"></a><var>99.21</var>employees defined contribution plan coverage under section 
<statute_ref>353D.02</statute_ref>, subdivision 2;<br/>
<a id="pl.99.22"></a><var>99.22</var>(2) full-time employees of the Dakota County Agricultural Society; and<br/>
<a id="pl.99.23"></a><var>99.23</var>(3) employees of the Minneapolis Firefighters Relief Association or Minneapolis <br/>
<a id="pl.99.24"></a><var>99.24</var>Police Relief Association who are not excluded employees under subdivision 2b due to <br/>
<a id="pl.99.25"></a><var>99.25</var>coverage by the relief association pension plan and who elect Public Employee Retirement <br/>
<a id="pl.99.26"></a><var>99.26</var>Association general plan coverage under Laws 2009, chapter 169, article 12, section 10.<br/>
<a id="pl.99.27"></a><var>99.27</var>(c) If the salary of an included public employee is less than $425 in any subsequent <br/>
<a id="pl.99.28"></a><var>99.28</var>month, the member retains membership eligibility.<br/>
<a id="pl.99.29"></a><var>99.29</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2010, except that the <br/>
<a id="pl.99.30"></a><var>99.30</var>amendment to paragraph (a), clause (3), applies to any person first appointed, elected, or <br/>
<a id="pl.99.31"></a><var>99.31</var>contracted after June 30, 2010.<br/>
<br/>
<a id="bill.5.3.0"></a><a id="pl.99.32"></a><var>99.32</var>    Sec. 3. Minnesota Statutes 2008, section 353.01, subdivision 2b, is amended to read:<br/>
<a id="pl.99.33"></a><var>99.33</var>    Subd. 2b. <b>Excluded employees.</b> (a) The following public employees are not eligible <br/>
<a id="pl.99.34"></a><var>99.34</var>to participate as members of the association with retirement coverage by the public general <br/>
<a id="pl.100.1"></a><var>100.1</var>employees retirement plan, the local government correctional employees retirement plan <br/>
<a id="pl.100.2"></a><var>100.2</var>under chapter 353E, or the public employees police and fire retirement plan:<br/>
<a id="pl.100.3"></a><var>100.3</var>    (1) persons whose salary from one governmental subdivision never exceeds $425 in <br/>
<a id="pl.100.4"></a><var>100.4</var>a month;<br/>
<a id="pl.100.5"></a><var>100.5</var>(2) public officers, other than county sheriffs, who are elected to a governing body, <br/>
<a id="pl.100.6"></a><var>100.6</var>city mayors, or persons who are appointed to fill a vacancy in an elective office of a <br/>
<a id="pl.100.7"></a><var>100.7</var>governing body, whose term of office commences on or after July 1, 2002, for the service <br/>
<a id="pl.100.8"></a><var>100.8</var>to be rendered in that elective position;<br/>
<a id="pl.100.9"></a><var>100.9</var>    (2) (3) election officers or election judges;<br/>
<a id="pl.100.10"></a><var>100.10</var>    (3) (4) patient and inmate personnel who perform services for a governmental <br/>
<a id="pl.100.11"></a><var>100.11</var>subdivision;<br/>
<a id="pl.100.12"></a><var>100.12</var>    (4) (5) except as otherwise specified in subdivision 12a, employees who are hired <br/>
<a id="pl.100.13"></a><var>100.13</var>for a temporary position as defined under subdivision 12a, and employees who resign <br/>
<a id="pl.100.14"></a><var>100.14</var>from a nontemporary position and accept a temporary position within 30 days in the <br/>
<a id="pl.100.15"></a><var>100.15</var>same governmental subdivision;<br/>
<a id="pl.100.16"></a><var>100.16</var>    (5) (6) employees who are employed by reason of work emergency caused by fire, <br/>
<a id="pl.100.17"></a><var>100.17</var>flood, storm, or similar disaster;<br/>
<a id="pl.100.18"></a><var>100.18</var>    (6) (7) employees who by virtue of their employment in one governmental <br/>
<a id="pl.100.19"></a><var>100.19</var>subdivision are required by law to be a member of and to contribute to any of the plans or <br/>
<a id="pl.100.20"></a><var>100.20</var>funds administered by the Minnesota State Retirement System, the Teachers Retirement <br/>
<a id="pl.100.21"></a><var>100.21</var>Association, the Duluth Teachers Retirement Fund Association, the St. Paul Teachers <br/>
<a id="pl.100.22"></a><var>100.22</var>Retirement Fund Association, the Minneapolis Employees Retirement Fund, or any police <br/>
<a id="pl.100.23"></a><var>100.23</var>or firefighters relief association governed by section 
         <statute_ref>69.77</statute_ref> that has not consolidated <br/>
<a id="pl.100.24"></a><var>100.24</var>with the Public Employees Retirement Association, or any local police or firefighters <br/>
<a id="pl.100.25"></a><var>100.25</var>consolidation account who have not elected the type of benefit coverage provided by the <br/>
<a id="pl.100.26"></a><var>100.26</var>public employees police and fire fund under sections 
         <statute_ref>353A.01</statute_ref> to 
         <statute_ref>353A.10</statute_ref>, or any persons <br/>
<a id="pl.100.27"></a><var>100.27</var>covered by section 
         <statute_ref>353.665, subdivision 4</statute_ref>, 5, or 6, who have not elected public employees <br/>
<a id="pl.100.28"></a><var>100.28</var>police and fire plan benefit coverage. This clause must not be construed to prevent a person <br/>
<a id="pl.100.29"></a><var>100.29</var>from being a member of and contributing to the Public Employees Retirement Association <br/>
<a id="pl.100.30"></a><var>100.30</var>and also belonging to and contributing to another public pension plan or fund for other <br/>
<a id="pl.100.31"></a><var>100.31</var>service occurring during the same period of time. A person who meets the definition of <br/>
<a id="pl.100.32"></a><var>100.32</var>"public employee" in subdivision 2 by virtue of other service occurring during the same <br/>
<a id="pl.100.33"></a><var>100.33</var>period of time becomes a member of the association unless contributions are made to <br/>
<a id="pl.100.34"></a><var>100.34</var>another public retirement fund on the salary based on the other service or to the Teachers <br/>
<a id="pl.100.35"></a><var>100.35</var>Retirement Association by a teacher as defined in section 
         <statute_ref>354.05, subdivision 2</statute_ref>;<br/>
<a id="pl.101.1"></a><var>101.1</var>    (7) (8) persons who are members of a religious order and are excluded from coverage <br/>
<a id="pl.101.2"></a><var>101.2</var>under the federal Old Age, Survivors, Disability, and Health Insurance Program for the <br/>
<a id="pl.101.3"></a><var>101.3</var>performance of service as specified in United States Code, title 42, section 410(a)(8)(A), <br/>
<a id="pl.101.4"></a><var>101.4</var>as amended through January 1, 1987, if no irrevocable election of coverage has been made <br/>
<a id="pl.101.5"></a><var>101.5</var>under section 3121(r) of the Internal Revenue Code of 1954, as amended;<br/>
<a id="pl.101.6"></a><var>101.6</var>    (8) (9) employees of a governmental subdivision who have not reached the age of <br/>
<a id="pl.101.7"></a><var>101.7</var>23 and are enrolled on a full-time basis to attend or are attending classes on a full-time <br/>
<a id="pl.101.8"></a><var>101.8</var>basis at an accredited school, college, or university in an undergraduate, graduate, or <br/>
<a id="pl.101.9"></a><var>101.9</var>professional-technical program, or a public or charter high school;<br/>
<a id="pl.101.10"></a><var>101.10</var>    (9) (10) resident physicians, medical interns, and pharmacist residents and <br/>
<a id="pl.101.11"></a><var>101.11</var>pharmacist interns who are serving in a degree or residency program in public hospitals <br/>
<a id="pl.101.12"></a><var>101.12</var>or clinics;<br/>
<a id="pl.101.13"></a><var>101.13</var>    (10) (11) students who are serving in an internship or residency program sponsored <br/>
<a id="pl.101.14"></a><var>101.14</var>by an accredited educational institution;<br/>
<a id="pl.101.15"></a><var>101.15</var>    (11) (12) persons who hold a part-time adult supplementary technical college license <br/>
<a id="pl.101.16"></a><var>101.16</var>who render part-time teaching service in a technical college;<br/>
<a id="pl.101.17"></a><var>101.17</var>    (12) (13) except for employees of Hennepin County or Hennepin Healthcare System, <br/>
<a id="pl.101.18"></a><var>101.18</var>Inc., foreign citizens working for who are employed by a governmental subdivision with <br/>
<a id="pl.101.19"></a><var>101.19</var>under a work permit of less than three years, or an H-1b visa valid initially issued or <br/>
<a id="pl.101.20"></a><var>101.20</var>extended for a combined period less than three years of employment. Upon notice to the <br/>
<a id="pl.101.21"></a><var>101.21</var>association that the work permit or visa extends extension of the employment beyond the <br/>
<a id="pl.101.22"></a><var>101.22</var>three-year period, the foreign citizens must be reported for membership from the date of <br/>
<a id="pl.101.23"></a><var>101.23</var>the extension beginning the first of the month thereafter provided the monthly earnings <br/>
<a id="pl.101.24"></a><var>101.24</var>threshold as provided under subdivision 2a is met;<br/>
<a id="pl.101.25"></a><var>101.25</var>    (13) (14) public hospital employees who elected not to participate as members <br/>
<a id="pl.101.26"></a><var>101.26</var>of the association before 1972 and who did not elect to participate from July 1, 1988, <br/>
<a id="pl.101.27"></a><var>101.27</var>to October 1, 1988;<br/>
<a id="pl.101.28"></a><var>101.28</var>    (14) (15) except as provided in section 
         <statute_ref>353.86</statute_ref>, volunteer ambulance service <br/>
<a id="pl.101.29"></a><var>101.29</var>personnel, as defined in subdivision 35, but persons who serve as volunteer ambulance <br/>
<a id="pl.101.30"></a><var>101.30</var>service personnel may still qualify as public employees under subdivision 2 and may be <br/>
<a id="pl.101.31"></a><var>101.31</var>members of the Public Employees Retirement Association and participants in the public <br/>
<a id="pl.101.32"></a><var>101.32</var>general employees retirement fund plan or the public employees police and fire fund plan, <br/>
<a id="pl.101.33"></a><var>101.33</var>whichever applies, on the basis of compensation received from public employment service <br/>
<a id="pl.101.34"></a><var>101.34</var>other than service as volunteer ambulance service personnel;<br/>
<a id="pl.101.35"></a><var>101.35</var>    (15) (16) except as provided in section 
         <statute_ref>353.87</statute_ref>, volunteer firefighters, as defined <br/>
<a id="pl.101.36"></a><var>101.36</var>in subdivision 36, engaging in activities undertaken as part of volunteer firefighter <br/>
<a id="pl.102.1"></a><var>102.1</var>duties; provided that, but a person who is a volunteer firefighter may still qualify as a <br/>
<a id="pl.102.2"></a><var>102.2</var>public employee under subdivision 2 and may be a member of the Public Employees <br/>
<a id="pl.102.3"></a><var>102.3</var>Retirement Association and a participant in the public general employees retirement <br/>
<a id="pl.102.4"></a><var>102.4</var>fund plan or the public employees police and fire fund plan, whichever applies, on the <br/>
<a id="pl.102.5"></a><var>102.5</var>basis of compensation received from public employment activities other than those as a <br/>
<a id="pl.102.6"></a><var>102.6</var>volunteer firefighter;<br/>
<a id="pl.102.7"></a><var>102.7</var>    (16) (17) pipefitters and associated trades personnel employed by Independent <br/>
<a id="pl.102.8"></a><var>102.8</var>School District No. 625, St. Paul, with coverage under a collective bargaining agreement <br/>
<a id="pl.102.9"></a><var>102.9</var>by the pipefitters local 455 pension plan who were either first employed after May 1, <br/>
<a id="pl.102.10"></a><var>102.10</var>1997, or, if first employed before May 2, 1997, elected to be excluded under Laws 1997, <br/>
<a id="pl.102.11"></a><var>102.11</var>chapter 241, article 2, section 12;<br/>
<a id="pl.102.12"></a><var>102.12</var>    (17) (18) electrical workers, plumbers, carpenters, and associated trades personnel <br/>
<a id="pl.102.13"></a><var>102.13</var>who are employed by Independent School District No. 625, St. Paul, or the city of St. <br/>
<a id="pl.102.14"></a><var>102.14</var>Paul, who have retirement coverage under a collective bargaining agreement by the <br/>
<a id="pl.102.15"></a><var>102.15</var>Electrical Workers Local 110 pension plan, the United Association Plumbers Local 34 <br/>
<a id="pl.102.16"></a><var>102.16</var>pension plan, or the pension plan applicable to Carpenters Local 87 pension plan who <br/>
<a id="pl.102.17"></a><var>102.17</var>were either first employed after May 1, 2000, or, if first employed before May 2, 2000, <br/>
<a id="pl.102.18"></a><var>102.18</var>elected to be excluded under Laws 2000, chapter 461, article 7, section 5;<br/>
<a id="pl.102.19"></a><var>102.19</var>    (18) (19) bricklayers, allied craftworkers, cement masons, glaziers, glassworkers, <br/>
<a id="pl.102.20"></a><var>102.20</var>painters, allied tradesworkers, and plasterers who are employed by the city of St. Paul <br/>
<a id="pl.102.21"></a><var>102.21</var>or Independent School District No. 625, St. Paul, with coverage under a collective <br/>
<a id="pl.102.22"></a><var>102.22</var>bargaining agreement by the Bricklayers and Allied Craftworkers Local 1 pension plan, <br/>
<a id="pl.102.23"></a><var>102.23</var>the Cement Masons Local 633 pension plan, the Glaziers and Glassworkers Local L-1324 <br/>
<a id="pl.102.24"></a><var>102.24</var>pension plan, the Painters and Allied Trades Local 61 pension plan, or the Twin Cities <br/>
<a id="pl.102.25"></a><var>102.25</var>Plasterers Local 265 pension plan who were either first employed after May 1, 2001, or if <br/>
<a id="pl.102.26"></a><var>102.26</var>first employed before May 2, 2001, elected to be excluded under Laws 2001, First Special <br/>
<a id="pl.102.27"></a><var>102.27</var>Session chapter 10, article 10, section 6;<br/>
<a id="pl.102.28"></a><var>102.28</var>    (19) (20) plumbers who are employed by the Metropolitan Airports Commission, <br/>
<a id="pl.102.29"></a><var>102.29</var>with coverage under a collective bargaining agreement by the Plumbers Local 34 pension <br/>
<a id="pl.102.30"></a><var>102.30</var>plan, who either were first employed after May 1, 2001, or if first employed before May 2, <br/>
<a id="pl.102.31"></a><var>102.31</var>2001, elected to be excluded under Laws 2001, First Special Session chapter 10, article <br/>
<a id="pl.102.32"></a><var>102.32</var>10, section 6;<br/>
<a id="pl.102.33"></a><var>102.33</var>    (20) (21) employees who are hired after June 30, 2002, to fill seasonal positions <br/>
<a id="pl.102.34"></a><var>102.34</var>under subdivision 12b which are limited in duration by the employer to 185 consecutive <br/>
<a id="pl.102.35"></a><var>102.35</var>calendar days or less in each year of employment with the governmental subdivision;<br/>
<a id="pl.103.1"></a><var>103.1</var>    (21) (22) persons who are provided supported employment or work-study positions <br/>
<a id="pl.103.2"></a><var>103.2</var>by a governmental subdivision and who participate in an employment or industries <br/>
<a id="pl.103.3"></a><var>103.3</var>program maintained for the benefit of these persons where the governmental subdivision <br/>
<a id="pl.103.4"></a><var>103.4</var>limits the position's duration to three years or less, including persons participating in a <br/>
<a id="pl.103.5"></a><var>103.5</var>federal or state subsidized on-the-job training, work experience, senior citizen, youth, or <br/>
<a id="pl.103.6"></a><var>103.6</var>unemployment relief program where the training or work experience is not provided as a <br/>
<a id="pl.103.7"></a><var>103.7</var>part of, or for, future permanent public employment;<br/>
<a id="pl.103.8"></a><var>103.8</var>    (22) (23) independent contractors and the employees of independent contractors; and<br/>
<a id="pl.103.9"></a><var>103.9</var>    (23) (24) reemployed annuitants of the association during the course of that <br/>
<a id="pl.103.10"></a><var>103.10</var>reemployment.; and<br/>
<a id="pl.103.11"></a><var>103.11</var>(25) persons appointed to serve on a board or commission of a governmental <br/>
<a id="pl.103.12"></a><var>103.12</var>subdivision or an instrumentality thereof.<br/>
<a id="pl.103.13"></a><var>103.13</var>(b) Any person performing the duties of a public officer in a position defined in <br/>
<a id="pl.103.14"></a><var>103.14</var>subdivision 2a, paragraph (a), clause (3), is not an independent contractor and is not an <br/>
<a id="pl.103.15"></a><var>103.15</var>employee of an independent contractor.<br/>
<a id="pl.103.16"></a><var>103.16</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2010, except that clause (25) <br/>
<a id="pl.103.17"></a><var>103.17</var>is effective for persons first appointed after June 30, 2010.<br/>
<br/>
<a id="bill.5.4.0"></a><a id="pl.103.18"></a><var>103.18</var>    Sec. 4. Minnesota Statutes 2008, section 353.01, subdivision 2d, is amended to read:<br/>
<a id="pl.103.19"></a><var>103.19</var>    Subd. 2d. <b>Optional membership.</b> (a) Membership in the association is optional <br/>
<a id="pl.103.20"></a><var>103.20</var>by action of the individual employee for the following public employees who meet the <br/>
<a id="pl.103.21"></a><var>103.21</var>conditions set forth in subdivision 2a:<br/>
<a id="pl.103.22"></a><var>103.22</var>(1) members of the coordinated plan who are also employees of labor organizations <br/>
<a id="pl.103.23"></a><var>103.23</var>as defined in section 
         <statute_ref>353.017, subdivision 1</statute_ref>, for their employment by the labor <br/>
<a id="pl.103.24"></a><var>103.24</var>organization only, if they elect to have membership under section 
         <statute_ref>353.017, subdivision 2</statute_ref>;<br/>
<a id="pl.103.25"></a><var>103.25</var>(2) persons who are elected or persons who are appointed to elected positions other <br/>
<a id="pl.103.26"></a><var>103.26</var>than local governing body elected positions who elect to participate by filing a written <br/>
<a id="pl.103.27"></a><var>103.27</var>election for membership;<br/>
<a id="pl.103.28"></a><var>103.28</var>(3) members of the association who are appointed by the governor to be a state <br/>
<a id="pl.103.29"></a><var>103.29</var>department head and who elect not to be covered by the general state employees retirement <br/>
<a id="pl.103.30"></a><var>103.30</var>plan of the Minnesota State Retirement System under section 
         <statute_ref>352.021</statute_ref>;<br/>
<a id="pl.103.31"></a><var>103.31</var>(4) city managers as defined in section 
         <statute_ref>353.028, subdivision 1</statute_ref>, who do not elect to be <br/>
<a id="pl.103.32"></a><var>103.32</var>excluded from membership in the association under section 
         <statute_ref>353.028, subdivision 2</statute_ref>; and<br/>
<a id="pl.103.33"></a><var>103.33</var>(5) employees of the Port Authority of the city of St. Paul on January 1, 2003, <br/>
<a id="pl.103.34"></a><var>103.34</var>who were at least age 45 on that date, and who elected to participate by filing a written <br/>
<a id="pl.103.35"></a><var>103.35</var>election for membership.<br/>
<a id="pl.104.1"></a><var>104.1</var>(b) Membership in the association is optional by action of the governmental <br/>
<a id="pl.104.2"></a><var>104.2</var>subdivision for the employees of the following governmental subdivisions under the <br/>
<a id="pl.104.3"></a><var>104.3</var>conditions specified:<br/>
<a id="pl.104.4"></a><var>104.4</var>(1) the Minnesota Association of Townships if the board of that association, at its <br/>
<a id="pl.104.5"></a><var>104.5</var>option, certifies to the executive director that its employees who meet the conditions set <br/>
<a id="pl.104.6"></a><var>104.6</var>forth in subdivision 2a are to be included for purposes of retirement coverage, in which <br/>
<a id="pl.104.7"></a><var>104.7</var>case the status of the association as a participating employer is permanent;<br/>
<a id="pl.104.8"></a><var>104.8</var>(2) a county historical society if the county in which the historical society is located, <br/>
<a id="pl.104.9"></a><var>104.9</var>at its option, certifies to the executive director that the employees of the historical society <br/>
<a id="pl.104.10"></a><var>104.10</var>who meet the conditions set forth in subdivision 2a are to be considered county employees <br/>
<a id="pl.104.11"></a><var>104.11</var>for purposes of retirement coverage under this chapter. The status as a county employee <br/>
<a id="pl.104.12"></a><var>104.12</var>must be accorded to all similarly situated county historical society employees and, once <br/>
<a id="pl.104.13"></a><var>104.13</var>established, must continue as long as a person is an employee of the county historical <br/>
<a id="pl.104.14"></a><var>104.14</var>society; and<br/>
<a id="pl.104.15"></a><var>104.15</var>(3) Hennepin Healthcare System, Inc., a public corporation, with respect to <br/>
<a id="pl.104.16"></a><var>104.16</var>employees other than paramedics, emergency medical technicians, and protection officers, <br/>
<a id="pl.104.17"></a><var>104.17</var>if the corporate board establishes alternative retirement plans for certain classes of <br/>
<a id="pl.104.18"></a><var>104.18</var>employees of the corporation and certifies to the association the applicable employees to <br/>
<a id="pl.104.19"></a><var>104.19</var>be excluded from future retirement coverage.<br/>
<a id="pl.104.20"></a><var>104.20</var>(c) For employees who are covered by paragraph (a), clause (1), (2), or (3), or <br/>
<a id="pl.104.21"></a><var>104.21</var>covered by paragraph (b), clause (1) or (2), if the necessary membership election is <br/>
<a id="pl.104.22"></a><var>104.22</var>not made, the employee is excluded from retirement coverage under this chapter. For <br/>
<a id="pl.104.23"></a><var>104.23</var>employees who are covered by paragraph (a), clause (4), if the necessary election is not <br/>
<a id="pl.104.24"></a><var>104.24</var>made, the employee must become a member and have retirement coverage under the <br/>
<a id="pl.104.25"></a><var>104.25</var>applicable provisions of this chapter. For employees specified in paragraph (b), clause <br/>
<a id="pl.104.26"></a><var>104.26</var>(3), membership continues until the exclusion option is exercised for the designated class <br/>
<a id="pl.104.27"></a><var>104.27</var>of employee.<br/>
<a id="pl.104.28"></a><var>104.28</var>(d) The option to become a member, once exercised under this subdivision, may not <br/>
<a id="pl.104.29"></a><var>104.29</var>be withdrawn until the termination of public service as defined under subdivision 11a.<br/>
<a id="pl.104.30"></a><var>104.30</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2010.<br/>
<br/>
<a id="bill.5.5.0"></a><a id="pl.104.31"></a><var>104.31</var>    Sec. 5. Minnesota Statutes 2009 Supplement, section 353.01, subdivision 16, is <br/>
<a id="pl.104.32"></a><var>104.32</var>amended to read:<br/>
<a id="pl.104.33"></a><var>104.33</var>    Subd. 16. <b>Allowable service; limits and computation.</b> (a) "Allowable service" <br/>
<a id="pl.104.34"></a><var>104.34</var>means:<br/>
<a id="pl.105.1"></a><var>105.1</var>    (1) service during years of actual membership in the course of which employee <br/>
<a id="pl.105.2"></a><var>105.2</var>deductions were withheld from salary and contributions were made at the applicable rates <br/>
<a id="pl.105.3"></a><var>105.3</var>under section 
         <statute_ref>353.27</statute_ref>, 
         <statute_ref>353.65</statute_ref>, or 
         <statute_ref>353E.03</statute_ref>;<br/>
<a id="pl.105.4"></a><var>105.4</var>(2) periods of service covered by payments in lieu of salary deductions under <br/>
<a id="pl.105.5"></a><var>105.5</var>sections 
         <statute_ref>353.27, subdivision 12</statute_ref>, and 
         <statute_ref>353.35</statute_ref>; <br/>
<a id="pl.105.6"></a><var>105.6</var>    (3) service in years during which the public employee was not a member but for <br/>
<a id="pl.105.7"></a><var>105.7</var>which the member later elected, while a member, to obtain credit by making payments to <br/>
<a id="pl.105.8"></a><var>105.8</var>the fund as permitted by any law then in effect;<br/>
<a id="pl.105.9"></a><var>105.9</var>    (4) a period of authorized leave of absence with pay from which deductions for <br/>
<a id="pl.105.10"></a><var>105.10</var>employee contributions are made, deposited, and credited to the fund;<br/>
<a id="pl.105.11"></a><var>105.11</var>    (5) a period of authorized personal, parental, or medical leave of absence without <br/>
<a id="pl.105.12"></a><var>105.12</var>pay, including a leave of absence covered under the federal Family Medical Leave Act, <br/>
<a id="pl.105.13"></a><var>105.13</var>that does not exceed one year, and for which a member obtained service credit for each <br/>
<a id="pl.105.14"></a><var>105.14</var>month in the leave period by payment under section 
         <statute_ref>353.0161</statute_ref> to the fund made in place of <br/>
<a id="pl.105.15"></a><var>105.15</var>salary deductions. An employee must return to public service and render a minimum of <br/>
<a id="pl.105.16"></a><var>105.16</var>three months of allowable service in order to be eligible to make payment under section <br/>
<statute_ref><a id="pl.105.17"></a><var>105.17</var>353.0161
         </statute_ref> for a subsequent authorized leave of absence without pay. Upon payment, the <br/>
<a id="pl.105.18"></a><var>105.18</var>employee must be granted allowable service credit for the purchased period; <br/>
<a id="pl.105.19"></a><var>105.19</var>    (6) a periodic, repetitive leave that is offered to all employees of a governmental <br/>
<a id="pl.105.20"></a><var>105.20</var>subdivision. The leave program may not exceed 208 hours per annual normal work cycle <br/>
<a id="pl.105.21"></a><var>105.21</var>as certified to the association by the employer. A participating member obtains service <br/>
<a id="pl.105.22"></a><var>105.22</var>credit by making employee contributions in an amount or amounts based on the member's <br/>
<a id="pl.105.23"></a><var>105.23</var>average salary, excluding overtime pay, that would have been paid if the leave had not <br/>
<a id="pl.105.24"></a><var>105.24</var>been taken. The employer shall pay the employer and additional employer contributions <br/>
<a id="pl.105.25"></a><var>105.25</var>on behalf of the participating member. The employee and the employer are responsible <br/>
<a id="pl.105.26"></a><var>105.26</var>to pay interest on their respective shares at the rate of 8.5 percent a year, compounded <br/>
<a id="pl.105.27"></a><var>105.27</var>annually, from the end of the normal cycle until full payment is made. An employer shall <br/>
<a id="pl.105.28"></a><var>105.28</var>also make the employer and additional employer contributions, plus 8.5 percent interest, <br/>
<a id="pl.105.29"></a><var>105.29</var>compounded annually, on behalf of an employee who makes employee contributions but <br/>
<a id="pl.105.30"></a><var>105.30</var>terminates public service. The employee contributions must be made within one year <br/>
<a id="pl.105.31"></a><var>105.31</var>after the end of the annual normal working cycle or within 30 days after termination of <br/>
<a id="pl.105.32"></a><var>105.32</var>public service, whichever is sooner. The executive director shall prescribe the manner and <br/>
<a id="pl.105.33"></a><var>105.33</var>forms to be used by a governmental subdivision in administering a periodic, repetitive <br/>
<a id="pl.105.34"></a><var>105.34</var>leave. Upon payment, the member must be granted allowable service credit for the <br/>
<a id="pl.105.35"></a><var>105.35</var>purchased period;<br/>
<a id="pl.106.1"></a><var>106.1</var>    (7) an authorized temporary or seasonal layoff under subdivision 12, limited to three <br/>
<a id="pl.106.2"></a><var>106.2</var>months allowable service per authorized temporary or seasonal layoff in one calendar year. <br/>
<a id="pl.106.3"></a><var>106.3</var>An employee who has received the maximum service credit allowed for an authorized <br/>
<a id="pl.106.4"></a><var>106.4</var>temporary or seasonal layoff must return to public service and must obtain a minimum of <br/>
<a id="pl.106.5"></a><var>106.5</var>three months of allowable service subsequent to the layoff in order to receive allowable <br/>
<a id="pl.106.6"></a><var>106.6</var>service for a subsequent authorized temporary or seasonal layoff; <br/>
<a id="pl.106.7"></a><var>106.7</var>    (8) a period during which a member is absent from employment by a governmental <br/>
<a id="pl.106.8"></a><var>106.8</var>subdivision by reason of service in the uniformed services, as defined in United States <br/>
<a id="pl.106.9"></a><var>106.9</var>Code, title 38, section 4303(13), if the member returns to public service with the same <br/>
<a id="pl.106.10"></a><var>106.10</var>governmental subdivision upon discharge from service in the uniformed service within the <br/>
<a id="pl.106.11"></a><var>106.11</var>time frames required under United States Code, title 38, section 4312(e), provided that <br/>
<a id="pl.106.12"></a><var>106.12</var>the member did not separate from uniformed service with a dishonorable or bad conduct <br/>
<a id="pl.106.13"></a><var>106.13</var>discharge or under other than honorable conditions. The service is must be credited if the <br/>
<a id="pl.106.14"></a><var>106.14</var>member pays into the fund equivalent employee contributions based upon the contribution <br/>
<a id="pl.106.15"></a><var>106.15</var>rate or rates in effect at the time that the uniformed service was performed multiplied <br/>
<a id="pl.106.16"></a><var>106.16</var>by the full and fractional years being purchased and applied to the annual salary rate. <br/>
<a id="pl.106.17"></a><var>106.17</var>The annual salary rate is the average annual salary, excluding overtime pay, during the <br/>
<a id="pl.106.18"></a><var>106.18</var>purchase period that the member would have received if the member had continued to <br/>
<a id="pl.106.19"></a><var>106.19</var>be employed in covered employment rather than to provide uniformed service, or, if <br/>
<a id="pl.106.20"></a><var>106.20</var>the determination of that rate is not reasonably certain, the annual salary rate is the <br/>
<a id="pl.106.21"></a><var>106.21</var>member's average salary rate, excluding overtime pay, during the 12-month period of <br/>
<a id="pl.106.22"></a><var>106.22</var>covered employment rendered immediately preceding the period of the uniformed service. <br/>
<a id="pl.106.23"></a><var>106.23</var>Payment of the member equivalent contributions must be made during a period that begins <br/>
<a id="pl.106.24"></a><var>106.24</var>with the date on which the individual returns to public employment and that is three times <br/>
<a id="pl.106.25"></a><var>106.25</var>the length of the military leave period, or within five years of the date of discharge from <br/>
<a id="pl.106.26"></a><var>106.26</var>the military service, whichever is less. If the determined payment period is less than <br/>
<a id="pl.106.27"></a><var>106.27</var>one year, the contributions required under this clause to receive service credit may be <br/>
<a id="pl.106.28"></a><var>106.28</var>made within one year of the discharge date. Payment may not be accepted following 30 <br/>
<a id="pl.106.29"></a><var>106.29</var>days after termination of public service under subdivision 11a. If the member equivalent <br/>
<a id="pl.106.30"></a><var>106.30</var>contributions provided for in this clause are not paid in full, the member's allowable <br/>
<a id="pl.106.31"></a><var>106.31</var>service credit must be prorated by multiplying the full and fractional number of years of <br/>
<a id="pl.106.32"></a><var>106.32</var>uniformed service eligible for purchase by the ratio obtained by dividing the total member <br/>
<a id="pl.106.33"></a><var>106.33</var>contributions received by the total member contributions otherwise required under this <br/>
<a id="pl.106.34"></a><var>106.34</var>clause. The equivalent employer contribution, and, if applicable, the equivalent additional <br/>
<a id="pl.106.35"></a><var>106.35</var>employer contribution must be paid by the governmental subdivision employing the <br/>
<a id="pl.106.36"></a><var>106.36</var>member if the member makes the equivalent employee contributions. The employer <br/>
<a id="pl.107.1"></a><var>107.1</var>payments must be made from funds available to the employing unit, using the employer <br/>
<a id="pl.107.2"></a><var>107.2</var>and additional employer contribution rate or rates in effect at the time that the uniformed <br/>
<a id="pl.107.3"></a><var>107.3</var>service was performed, applied to the same annual salary rate or rates used to compute the <br/>
<a id="pl.107.4"></a><var>107.4</var>equivalent member contribution. The governmental subdivision involved may appropriate <br/>
<a id="pl.107.5"></a><var>107.5</var>money for those payments. The amount of service credit obtainable under this section may <br/>
<a id="pl.107.6"></a><var>107.6</var>not exceed five years unless a longer purchase period is required under United States Code, <br/>
<a id="pl.107.7"></a><var>107.7</var>title 38, section 4312. The employing unit shall pay interest on all equivalent member and <br/>
<a id="pl.107.8"></a><var>107.8</var>employer contribution amounts payable under this clause. Interest must be computed at a <br/>
<a id="pl.107.9"></a><var>107.9</var>rate of 8.5 percent compounded annually from the end of each fiscal year of the leave or the <br/>
<a id="pl.107.10"></a><var>107.10</var>break in service to the end of the month in which the payment is received. Upon payment, <br/>
<a id="pl.107.11"></a><var>107.11</var>the employee must be granted allowable service credit for the purchased period; or<br/>
<a id="pl.107.12"></a><var>107.12</var>(9) a period specified under subdivision 40.<br/>
<a id="pl.107.13"></a><var>107.13</var>    (b) For calculating benefits under sections 
         <statute_ref>353.30</statute_ref>, 
         <statute_ref>353.31</statute_ref>, 
         <statute_ref>353.32</statute_ref>, and 
         <statute_ref>353.33</statute_ref> for <br/>
<a id="pl.107.14"></a><var>107.14</var>state officers and employees displaced by the Community Corrections Act, chapter 401, <br/>
<a id="pl.107.15"></a><var>107.15</var>and transferred into county service under section 
         <statute_ref>401.04</statute_ref>, "allowable service" means the <br/>
<a id="pl.107.16"></a><var>107.16</var>combined years of allowable service as defined in paragraph (a), clauses (1) to (6), and <br/>
<a id="pl.107.17"></a><var>107.17</var>section 
         <statute_ref>352.01, subdivision 11</statute_ref>. <br/>
<a id="pl.107.18"></a><var>107.18</var>    (c) For a public employee who has prior service covered by a local police or <br/>
<a id="pl.107.19"></a><var>107.19</var>firefighters relief association that has consolidated with the Public Employees Retirement <br/>
<a id="pl.107.20"></a><var>107.20</var>Association or to which section 
         <statute_ref>353.665</statute_ref> applies, and who has elected the type of benefit <br/>
<a id="pl.107.21"></a><var>107.21</var>coverage provided by the public employees police and fire fund either under section <br/>
<statute_ref><a id="pl.107.22"></a><var>107.22</var>353A.08
         </statute_ref> following the consolidation or under section 
         <statute_ref>353.665, subdivision 4</statute_ref>, "applicable <br/>
<a id="pl.107.23"></a><var>107.23</var>service" is a period of service credited by the local police or firefighters relief association <br/>
<a id="pl.107.24"></a><var>107.24</var>as of the effective date of the consolidation based on law and on bylaw provisions <br/>
<a id="pl.107.25"></a><var>107.25</var>governing the relief association on the date of the initiation of the consolidation procedure. <br/>
<a id="pl.107.26"></a><var>107.26</var>    (d) No member may receive more than 12 months of allowable service credit in a <br/>
<a id="pl.107.27"></a><var>107.27</var>year either for vesting purposes or for benefit calculation purposes.<br/>
<a id="pl.107.28"></a><var>107.28</var>    (e) MS 2002 [Expired]<br/>
<a id="pl.107.29"></a><var>107.29</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.5.6.0"></a><a id="pl.107.30"></a><var>107.30</var>    Sec. 6. Minnesota Statutes 2008, section 353.0161, subdivision 2, is amended to read:<br/>
<a id="pl.107.31"></a><var>107.31</var>    Subd. 2. <b>Purchase procedure.</b> (a) An employee covered by a plan specified in <br/>
<a id="pl.107.32"></a><var>107.32</var>subdivision 1 may purchase credit for allowable service in that plan for a period specified <br/>
<a id="pl.107.33"></a><var>107.33</var>in subdivision 1 if the employee makes a payment as specified in paragraph (b) or (c), <br/>
<a id="pl.107.34"></a><var>107.34</var>whichever applies. The employing unit, at its option, may pay the employer portion of the <br/>
<a id="pl.107.35"></a><var>107.35</var>amount specified in paragraph (b) on behalf of its employees.<br/>
<a id="pl.108.1"></a><var>108.1</var>    (b) If payment is received by the executive director within one year from the date the <br/>
<a id="pl.108.2"></a><var>108.2</var>member returned to work following the authorized leave, or within 30 days after the date <br/>
<a id="pl.108.3"></a><var>108.3</var>of termination of public service if the member did not return to work, the payment amount <br/>
<a id="pl.108.4"></a><var>108.4</var>is equal to the employee and employer contribution rates specified in law for the applicable <br/>
<a id="pl.108.5"></a><var>108.5</var>plan at the end of the leave period, or at termination of public service, whichever is earlier, <br/>
<a id="pl.108.6"></a><var>108.6</var>multiplied by the employee's average monthly salary, excluding overtime, upon which <br/>
<a id="pl.108.7"></a><var>108.7</var>deductions were paid during the six months, or portion thereof, before the commencement <br/>
<a id="pl.108.8"></a><var>108.8</var>of the leave of absence and by the number of months of the leave of absence for which <br/>
<a id="pl.108.9"></a><var>108.9</var>the employee wants allowable service credit. Payments made under this paragraph must <br/>
<a id="pl.108.10"></a><var>108.10</var>include compound interest at a monthly rate of 0.71 percent from the last day of the leave <br/>
<a id="pl.108.11"></a><var>108.11</var>period until the last day of the month in which payment is received.<br/>
<a id="pl.108.12"></a><var>108.12</var>    (c) If payment is received by the executive director after one year, the payment <br/>
<a id="pl.108.13"></a><var>108.13</var>amount is the amount determined under section 
         <statute_ref>356.551</statute_ref>. Payment under this paragraph <br/>
<a id="pl.108.14"></a><var>108.14</var>must be made before the date the person terminates public service under section 
         <statute_ref>353.01</statute_ref>, <br/>
<a id="pl.108.15"></a><var>108.15</var>subdivision 11a.<br/>
<a id="pl.108.16"></a><var>108.16</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.5.7.0"></a><a id="pl.108.17"></a><var>108.17</var>    Sec. 7. <b>[353.0162] REDUCED SALARY PERIODS SALARY CREDIT </b><br/>
<a id="pl.108.18"></a><var>108.18</var><b>PURCHASE.</b><br/>
<a id="pl.108.19"></a><var>108.19</var>(a) A member may purchase additional salary credit for a period specified in this <br/>
<a id="pl.108.20"></a><var>108.20</var>section.<br/>
<a id="pl.108.21"></a><var>108.21</var>(b) The applicable period is a period during which the member is receiving a reduced <br/>
<a id="pl.108.22"></a><var>108.22</var>salary from the employer while the member is:<br/>
<a id="pl.108.23"></a><var>108.23</var>(1) receiving temporary workers' compensation payments related to the member's <br/>
<a id="pl.108.24"></a><var>108.24</var>service to the public employer;<br/>
<a id="pl.108.25"></a><var>108.25</var>(2) on an authorized medical leave of absence; or<br/>
<a id="pl.108.26"></a><var>108.26</var>(3) on an authorized partial paid leave of absence as a result of a budgetary or salary <br/>
<a id="pl.108.27"></a><var>108.27</var>savings program offered or mandated by a governmental subdivision.<br/>
<a id="pl.108.28"></a><var>108.28</var>(c) The differential salary amount is the difference between the average monthly <br/>
<a id="pl.108.29"></a><var>108.29</var>salary received by the member during the period of reduced salary under this section and <br/>
<a id="pl.108.30"></a><var>108.30</var>the average monthly salary of the member, excluding overtime, on which contributions <br/>
<a id="pl.108.31"></a><var>108.31</var>to the applicable plan were made during the period of the last six months of covered <br/>
<a id="pl.108.32"></a><var>108.32</var>employment occurring immediately before the period of reduced salary, applied to the <br/>
<a id="pl.108.33"></a><var>108.33</var>member's normal employment period, measured in hours or otherwise, as applicable.<br/>
<a id="pl.108.34"></a><var>108.34</var>(d) To receive eligible salary credit, the member shall pay an amount equal to:<br/>
<a id="pl.109.1"></a><var>109.1</var>(1) the applicable employee contribution rate under section 
<statute_ref>353.27, subdivision <br/>
<a id="pl.109.2"></a><var>109.2</var>2
</statute_ref>; 
<statute_ref>353.65, subdivision 2</statute_ref>; or 
<statute_ref>353E.03, subdivision 1</statute_ref>, as applicable, multiplied by the <br/>
<a id="pl.109.3"></a><var>109.3</var>differential salary amount;<br/>
<a id="pl.109.4"></a><var>109.4</var>(2) plus an employer equivalent payment equal to the applicable employer <br/>
<a id="pl.109.5"></a><var>109.5</var>contribution rate in section 
<statute_ref>353.27, subdivision 3</statute_ref>; 
<statute_ref>353.65, subdivision 3</statute_ref>; or 
<statute_ref>353E.03, <br/>
<a id="pl.109.6"></a><var>109.6</var>subdivision 2
</statute_ref>, as applicable, multiplied by the differential salary amount;<br/>
<a id="pl.109.7"></a><var>109.7</var>(3) plus, if applicable, an equivalent employer additional amount equal to the <br/>
<a id="pl.109.8"></a><var>109.8</var>additional employer contribution rate in section 
<statute_ref>353.27, subdivision 3a</statute_ref>, multiplied by the <br/>
<a id="pl.109.9"></a><var>109.9</var>differential salary amount. <br/>
<a id="pl.109.10"></a><var>109.10</var>(e) The employer, by appropriate action of its governing body and documented in its <br/>
<a id="pl.109.11"></a><var>109.11</var>official records, may pay the employer equivalent contributions and, as applicable, the <br/>
<a id="pl.109.12"></a><var>109.12</var>equivalent employer additional contributions on behalf of the member.<br/>
<a id="pl.109.13"></a><var>109.13</var>(f) Payment under this section must include interest on the contribution amount <br/>
<a id="pl.109.14"></a><var>109.14</var>or amounts, whichever applies, at an 8.5 percent annual rate, prorated for applicable <br/>
<a id="pl.109.15"></a><var>109.15</var>months from the date on which the period of reduced salary specified under this section <br/>
<a id="pl.109.16"></a><var>109.16</var>terminates to the date on which the payment or payments are received by the executive <br/>
<a id="pl.109.17"></a><var>109.17</var>director. Payment under this section must be completed within the earlier of 30 days from <br/>
<a id="pl.109.18"></a><var>109.18</var>termination of public service by the employee under section 353.01, subdivision 11a, or <br/>
<a id="pl.109.19"></a><var>109.19</var>one year after the termination of the period specified in paragraph (b), as further restricted <br/>
<a id="pl.109.20"></a><var>109.20</var>under this section.<br/>
<a id="pl.109.21"></a><var>109.21</var>(g) The period for which additional allowable salary credit may be purchased is <br/>
<a id="pl.109.22"></a><var>109.22</var>limited to the period during which the person receives temporary workers' compensation <br/>
<a id="pl.109.23"></a><var>109.23</var>payments or for those business years in which the governmental subdivision offers or <br/>
<a id="pl.109.24"></a><var>109.24</var>mandates a budget or salary savings program, as certified to the executive director by a <br/>
<a id="pl.109.25"></a><var>109.25</var>resolution of the governing body of the governmental subdivision. For an authorized <br/>
<a id="pl.109.26"></a><var>109.26</var>medical leave of absence, the period for which allowable salary credit may be purchased <br/>
<a id="pl.109.27"></a><var>109.27</var>may not exceed 12 consecutive months of authorized medical leave.<br/>
<a id="pl.109.28"></a><var>109.28</var>(h) To purchase salary credit for a subsequent period of temporary workers' <br/>
<a id="pl.109.29"></a><var>109.29</var>compensation benefits or subsequent authorized medical leave of absence, the member <br/>
<a id="pl.109.30"></a><var>109.30</var>must return to public service and render a minimum of three months of allowable service.<br/>
<a id="pl.109.31"></a><var>109.31</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2010. Purchase of reduced <br/>
<a id="pl.109.32"></a><var>109.32</var>salary credit may be made for a period mandated or offered by a governmental subdivision <br/>
<a id="pl.109.33"></a><var>109.33</var>for purposes of budget or salary savings on or after July 1, 2009.<br/>
<br/>
<a id="bill.5.8.0"></a><a id="pl.109.34"></a><var>109.34</var>    Sec. 8. Minnesota Statutes 2008, section 353.03, subdivision 1, is amended to read:<br/>
<a id="pl.110.1"></a><var>110.1</var>    Subdivision 1. <b>Management; composition; election.</b> (a) The management of the <br/>
<a id="pl.110.2"></a><var>110.2</var>public employees retirement fund is vested in an 11-member board of trustees consisting <br/>
<a id="pl.110.3"></a><var>110.3</var>of ten members and the state auditor. The state auditor may designate a deputy auditor <br/>
<a id="pl.110.4"></a><var>110.4</var>with expertise in pension matters as the auditor's representative on the board. The <br/>
<a id="pl.110.5"></a><var>110.5</var>governor shall appoint five trustees to four-year terms, one of whom shall be designated to <br/>
<a id="pl.110.6"></a><var>110.6</var>represent school boards, one to represent cities, one to represent counties, one who is a <br/>
<a id="pl.110.7"></a><var>110.7</var>retired annuitant, and one who is a public member knowledgeable in pension matters. The <br/>
<a id="pl.110.8"></a><var>110.8</var>membership of the association, including recipients of retirement annuities and disability <br/>
<a id="pl.110.9"></a><var>110.9</var>and survivor benefits, shall elect five trustees for terms of four years, one of whom must <br/>
<a id="pl.110.10"></a><var>110.10</var>be a member of the police and fire fund and one of whom must be a former member who <br/>
<a id="pl.110.11"></a><var>110.11</var>met the definition of public employee under section 353.01, subdivisions 2 and 2a, for at <br/>
<a id="pl.110.12"></a><var>110.12</var>least five years prior to terminating membership and who is receiving a retirement annuity <br/>
<a id="pl.110.13"></a><var>110.13</var>or a member who receives a disability benefit. Terms expire on January 31 of the fourth <br/>
<a id="pl.110.14"></a><var>110.14</var>year, and positions are vacant until newly elected members are seated. Except as provided <br/>
<a id="pl.110.15"></a><var>110.15</var>in this subdivision, trustees elected by the membership of the association must be public <br/>
<a id="pl.110.16"></a><var>110.16</var>employees and members of the association. <br/>
<a id="pl.110.17"></a><var>110.17</var>(b) For seven days beginning October 1 of each year preceding a year in which <br/>
<a id="pl.110.18"></a><var>110.18</var>an election is held, the association shall accept at its office filings in person or by mail <br/>
<a id="pl.110.19"></a><var>110.19</var>of candidates for the board of trustees. A candidate shall submit at the time of filing a <br/>
<a id="pl.110.20"></a><var>110.20</var>nominating petition signed by 25 or more members of the association. No name may <br/>
<a id="pl.110.21"></a><var>110.21</var>be withdrawn from nomination by the nominee after October 15. At the request of a <br/>
<a id="pl.110.22"></a><var>110.22</var>candidate for an elected position on the board of trustees, the board shall mail provide <br/>
<a id="pl.110.23"></a><var>110.23</var>a statement of up to 300 words prepared by the candidate to all persons eligible to vote <br/>
<a id="pl.110.24"></a><var>110.24</var>in the election of the candidate. The board may adopt policies, subject to review and <br/>
<a id="pl.110.25"></a><var>110.25</var>approval by the secretary of state under paragraph (e), and procedures to govern the form <br/>
<a id="pl.110.26"></a><var>110.26</var>and length of these statements, and the timing of mailings, and deadlines for submitting <br/>
<a id="pl.110.27"></a><var>110.27</var>materials to be mailed. The secretary of state shall resolve disputes between the board and <br/>
<a id="pl.110.28"></a><var>110.28</var>a candidate concerning application of these policies to a particular statement distributed to <br/>
<a id="pl.110.29"></a><var>110.29</var>the eligible voters. <br/>
<a id="pl.110.30"></a><var>110.30</var>(c) By January 10 of each year in which elections are to be held, the board shall <br/>
<a id="pl.110.31"></a><var>110.31</var>distribute by mail to the members ballots listing eligible voters the instructions and <br/>
<a id="pl.110.32"></a><var>110.32</var>materials necessary to vote for the candidates seeking terms on the board of trustees. <br/>
<a id="pl.110.33"></a><var>110.33</var>Eligible voters are the members, retirees, and other benefit recipients. No member voter <br/>
<a id="pl.110.34"></a><var>110.34</var>may vote for more than one candidate for each board position to be filled. A ballot <br/>
<a id="pl.110.35"></a><var>110.35</var>indicating a vote for more than one person for any position is void. No special marking <br/>
<a id="pl.110.36"></a><var>110.36</var>may be used on the ballot to indicate incumbents. Ballots Votes cast by using paper ballots <br/>
<a id="pl.111.1"></a><var>111.1</var>mailed to the association must be postmarked no later than January 31. Votes cast by using <br/>
<a id="pl.111.2"></a><var>111.2</var>telephone or other electronic means authorized under the board's procedures must be <br/>
<a id="pl.111.3"></a><var>111.3</var>entered by the end of the day on January 31. The ballot envelopes must be so designated <br/>
<a id="pl.111.4"></a><var>111.4</var>and the ballots must be counted in a manner that ensures design of the voting response <br/>
<a id="pl.111.5"></a><var>111.5</var>media must ensure that each voter's vote is secret.<br/>
<a id="pl.111.6"></a><var>111.6</var>(d) A candidate who receives contributions or, who makes expenditures in excess <br/>
<a id="pl.111.7"></a><var>111.7</var>of $100, or who has given implicit or explicit consent for any other person to receive <br/>
<a id="pl.111.8"></a><var>111.8</var>contributions or make expenditures in excess of $100 for the purpose of bringing about the <br/>
<a id="pl.111.9"></a><var>111.9</var>candidate's election, shall file a report with the campaign finance and public disclosure <br/>
<a id="pl.111.10"></a><var>111.10</var>board disclosing the source and amount of all contributions to the candidate's campaign. <br/>
<a id="pl.111.11"></a><var>111.11</var>The campaign finance and public disclosure board shall prescribe forms governing these <br/>
<a id="pl.111.12"></a><var>111.12</var>disclosures. Expenditures and contributions have the meaning defined in section 
         <statute_ref>10A.01</statute_ref>. <br/>
<a id="pl.111.13"></a><var>111.13</var>These terms do not include the mailing any distribution made by the association board on <br/>
<a id="pl.111.14"></a><var>111.14</var>behalf of the candidate. A candidate shall file a report within 30 days from the day that the <br/>
<a id="pl.111.15"></a><var>111.15</var>results of the election are announced. The Campaign Finance and Public Disclosure Board <br/>
<a id="pl.111.16"></a><var>111.16</var>shall maintain these reports and make them available for public inspection in the same <br/>
<a id="pl.111.17"></a><var>111.17</var>manner as the board maintains and makes available other reports filed with it. <br/>
<a id="pl.111.18"></a><var>111.18</var>(e) The secretary of state shall review and approve comment on the procedures <br/>
<a id="pl.111.19"></a><var>111.19</var>defined by the board of trustees for conducting the elections specified in this subdivision, <br/>
<a id="pl.111.20"></a><var>111.20</var>including board policies adopted under paragraph (b). <br/>
<a id="pl.111.21"></a><var>111.21</var>(f) The board of trustees and the executive director shall undertake their activities <br/>
<a id="pl.111.22"></a><var>111.22</var>consistent with chapter 356A.<br/>
<a id="pl.111.23"></a><var>111.23</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.5.9.0"></a><a id="pl.111.24"></a><var>111.24</var>    Sec. 9. Minnesota Statutes 2008, section 353.27, subdivision 4, is amended to read:<br/>
<a id="pl.111.25"></a><var>111.25</var>    Subd. 4. <b>Employer reporting requirements; contributions; member status.</b><br/>
<a id="pl.111.26"></a><var>111.26</var>(a) A representative authorized by the head of each department shall deduct employee <br/>
<a id="pl.111.27"></a><var>111.27</var>contributions from the salary of each public employee who qualifies for membership <br/>
<a id="pl.111.28"></a><var>111.28</var>under this chapter and or chapter 353D or 353E at the rate under section 353.27, 353.65, <br/>
<a id="pl.111.29"></a><var>111.29</var>353D.03, or 353E.03, whichever is applicable, that is in effect on the date the salary is <br/>
<a id="pl.111.30"></a><var>111.30</var>paid. The employer representative must also remit payment in a manner prescribed by <br/>
<a id="pl.111.31"></a><var>111.31</var>the executive director for the aggregate amount of the employee contributions, and the <br/>
<a id="pl.111.32"></a><var>111.32</var>required employer contributions and the additional employer contributions to be received <br/>
<a id="pl.111.33"></a><var>111.33</var>by the association within 14 calendar days after each pay date. If the payment is less than <br/>
<a id="pl.111.34"></a><var>111.34</var>the amount required, the employer must pay the shortage amount to the association and <br/>
<a id="pl.111.35"></a><var>111.35</var>collect reimbursement of any employee contribution shortage paid on behalf of a member <br/>
<a id="pl.112.1"></a><var>112.1</var>through subsequent payroll withholdings from the wages of the employee. Payment of <br/>
<a id="pl.112.2"></a><var>112.2</var>shortages in employee contributions and associated employer contributions, if applicable, <br/>
<a id="pl.112.3"></a><var>112.3</var>must include interest at the rate specified in section 353.28, subdivision 5, if not received <br/>
<a id="pl.112.4"></a><var>112.4</var>within 30 days following the date the amount was initially due under this section.<br/>
<a id="pl.112.5"></a><var>112.5</var>(b) The head of each department or the person's designee shall submit for each pay <br/>
<a id="pl.112.6"></a><var>112.6</var>period submit to the association a salary deduction report in the format prescribed by the <br/>
<a id="pl.112.7"></a><var>112.7</var>executive director. The report must be received by the association within 14 calendar days <br/>
<a id="pl.112.8"></a><var>112.8</var>after each pay date or the employer may be assessed a fine of $5 per calendar day until <br/>
<a id="pl.112.9"></a><var>112.9</var>the association receives the required data. Data required to be submitted as part of salary <br/>
<a id="pl.112.10"></a><var>112.10</var>deduction reporting must include, but are not limited to:<br/>
<a id="pl.112.11"></a><var>112.11</var>(1)  the legal names and Social Security numbers of employees who are members;<br/>
<a id="pl.112.12"></a><var>112.12</var>(2) the amount of each employee's salary deduction;<br/>
<a id="pl.112.13"></a><var>112.13</var>(3) the amount of salary defined in section 353.01, subdivision 10, earned in the <br/>
<a id="pl.112.14"></a><var>112.14</var>pay period from which each deduction was made and the salary amount earned by a <br/>
<a id="pl.112.15"></a><var>112.15</var>reemployed annuitant under section 353.37, subdivision 1, or 353.371, subdivision 1, or <br/>
<a id="pl.112.16"></a><var>112.16</var>by a disabled member under section 353.33, subdivision 7 or 7a;<br/>
<a id="pl.112.17"></a><var>112.17</var>(4) the beginning and ending dates of the payroll period covered and the date of <br/>
<a id="pl.112.18"></a><var>112.18</var>actual payment; and<br/>
<a id="pl.112.19"></a><var>112.19</var>(5) adjustments or corrections covering past pay periods as authorized by the <br/>
<a id="pl.112.20"></a><var>112.20</var>executive director.<br/>
<a id="pl.112.21"></a><var>112.21</var>(b) (c) Employers must furnish the data required for enrollment for each new <br/>
<a id="pl.112.22"></a><var>112.22</var>or reinstated employee who qualifies for membership in the format prescribed by the <br/>
<a id="pl.112.23"></a><var>112.23</var>executive director. The required enrollment data on new employees members must be <br/>
<a id="pl.112.24"></a><var>112.24</var>submitted to the association prior to or concurrent with the submission of the initial <br/>
<a id="pl.112.25"></a><var>112.25</var>employee salary deduction. Also, the employer shall also report to the association all <br/>
<a id="pl.112.26"></a><var>112.26</var>member employment status changes, such as leaves of absence, terminations, and death, <br/>
<a id="pl.112.27"></a><var>112.27</var>and shall report the effective dates of those changes, on an ongoing basis for the payroll <br/>
<a id="pl.112.28"></a><var>112.28</var>cycle in which they occur. If an employer fails to comply with the reporting requirements <br/>
<a id="pl.112.29"></a><var>112.29</var>under this paragraph, the executive director may assess a fine of $25 for each failure if the <br/>
<a id="pl.112.30"></a><var>112.30</var>association staff has notified the employer of the noncompliance and attempted to obtain <br/>
<a id="pl.112.31"></a><var>112.31</var>the missing data or form from the employer for a period of more than three months.<br/>
<a id="pl.112.32"></a><var>112.32</var>(d) The employer shall furnish data, forms, and reports as may be required by <br/>
<a id="pl.112.33"></a><var>112.33</var>the executive director for proper administration of the retirement system. Before <br/>
<a id="pl.112.34"></a><var>112.34</var>implementing new or different computerized reporting requirements, the executive <br/>
<a id="pl.112.35"></a><var>112.35</var>director shall give appropriate advance notice to governmental subdivisions to allow time <br/>
<a id="pl.112.36"></a><var>112.36</var>for system modifications.<br/>
<a id="pl.113.1"></a><var>113.1</var>(c) (e) Notwithstanding paragraph (a), the association may provide for less frequent <br/>
<a id="pl.113.2"></a><var>113.2</var>reporting and payments for small employers.<br/>
<a id="pl.113.3"></a><var>113.3</var>(f) The executive director may establish reporting procedures and methods as <br/>
<a id="pl.113.4"></a><var>113.4</var>required to review compliance by employers with the salary and contribution reporting <br/>
<a id="pl.113.5"></a><var>113.5</var>requirements in this chapter. A review of the payroll records of a participating employer <br/>
<a id="pl.113.6"></a><var>113.6</var>may be conducted by the association on a periodic basis or as a result of concerns known <br/>
<a id="pl.113.7"></a><var>113.7</var>to exist within a governmental subdivision.  An employer under review must extract <br/>
<a id="pl.113.8"></a><var>113.8</var>requested data and provide records to the association after receiving reasonable advanced <br/>
<a id="pl.113.9"></a><var>113.9</var>notice.  Failure to provide requested information or materials will result in the employer <br/>
<a id="pl.113.10"></a><var>113.10</var>being liable to the association for any expenses associated with a field audit, which may <br/>
<a id="pl.113.11"></a><var>113.11</var>include staff salaries, administrative expenses, and travel expenses.<br/>
<a id="pl.113.12"></a><var>113.12</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.5.10.0"></a><a id="pl.113.13"></a><var>113.13</var>    Sec. 10. Minnesota Statutes 2009 Supplement, section 353.27, subdivision 7, is <br/>
<a id="pl.113.14"></a><var>113.14</var>amended to read:<br/>
<a id="pl.113.15"></a><var>113.15</var>    Subd. 7. <b>Adjustment for erroneous receipts or disbursements.</b> (a) Except <br/>
<a id="pl.113.16"></a><var>113.16</var>as provided in paragraph (b), erroneous employee deductions and erroneous employer <br/>
<a id="pl.113.17"></a><var>113.17</var>contributions and additional employer contributions for a person, who otherwise does not <br/>
<a id="pl.113.18"></a><var>113.18</var>qualify for membership under this chapter, are considered:<br/>
<a id="pl.113.19"></a><var>113.19</var>(1) valid if the initial erroneous deduction began before January 1, 1990. Upon <br/>
<a id="pl.113.20"></a><var>113.20</var>determination of the error by the association, the person may continue membership in the <br/>
<a id="pl.113.21"></a><var>113.21</var>association while employed in the same position for which erroneous deductions were <br/>
<a id="pl.113.22"></a><var>113.22</var>taken, or file a written election to terminate membership and apply for a refund upon <br/>
<a id="pl.113.23"></a><var>113.23</var>termination of public service or defer an annuity under section 
         <statute_ref>353.34</statute_ref>; or <br/>
<a id="pl.113.24"></a><var>113.24</var>(2) invalid, if the initial erroneous employee deduction began on or after January 1, <br/>
<a id="pl.113.25"></a><var>113.25</var>1990. Upon determination of the error, the association shall refund all erroneous employee <br/>
<a id="pl.113.26"></a><var>113.26</var>deductions and all erroneous employer contributions as specified in paragraph (e). No <br/>
<a id="pl.113.27"></a><var>113.27</var>person may claim a right to continued or past membership in the association based on <br/>
<a id="pl.113.28"></a><var>113.28</var>erroneous deductions which began on or after January 1, 1990. <br/>
<a id="pl.113.29"></a><var>113.29</var>(b) Erroneous deductions taken from the salary of a person who did not qualify for <br/>
<a id="pl.113.30"></a><var>113.30</var>membership in the association by virtue of concurrent employment before July 1, 1978, <br/>
<a id="pl.113.31"></a><var>113.31</var>which required contributions to another retirement fund or relief association established <br/>
<a id="pl.113.32"></a><var>113.32</var>for the benefit of officers and employees of a governmental subdivision, are invalid. Upon <br/>
<a id="pl.113.33"></a><var>113.33</var>discovery of the error, the association shall remove allowable service credit for all invalid <br/>
<a id="pl.113.34"></a><var>113.34</var>service if forfeited and, upon termination of public service, the association shall refund all <br/>
<a id="pl.113.35"></a><var>113.35</var>erroneous employee deductions to the person, with interest as determined under section <br/>
<statute_ref><a id="pl.114.1"></a><var>114.1</var>353.34, subdivision 2
         </statute_ref>, and all erroneous employer contributions without interest to the <br/>
<a id="pl.114.2"></a><var>114.2</var>employer. This paragraph has both retroactive and prospective application. <br/>
<a id="pl.114.3"></a><var>114.3</var>(c) Adjustments to correct employer contributions and employee deductions taken <br/>
<a id="pl.114.4"></a><var>114.4</var>in error from amounts which are not salary under section 
         <statute_ref>353.01, subdivision 10</statute_ref>, must <br/>
<a id="pl.114.5"></a><var>114.5</var>be made as specified in paragraph (e). The period of adjustment must be limited to the <br/>
<a id="pl.114.6"></a><var>114.6</var>fiscal year in which the error is discovered by the association and the immediate two <br/>
<a id="pl.114.7"></a><var>114.7</var>preceding fiscal years. <br/>
<a id="pl.114.8"></a><var>114.8</var>(d) If there is evidence of fraud or other misconduct on the part of the employee or <br/>
<a id="pl.114.9"></a><var>114.9</var>the employer, the board of trustees may authorize adjustments to the account of a member <br/>
<a id="pl.114.10"></a><var>114.10</var>or former member to correct erroneous employee deductions and employer contributions <br/>
<a id="pl.114.11"></a><var>114.11</var>on invalid salary and the recovery of any overpayments for a period longer than provided <br/>
<a id="pl.114.12"></a><var>114.12</var>for under paragraph (c).<br/>
<a id="pl.114.13"></a><var>114.13</var>(e) Upon discovery of the receipt of erroneous employee deductions and employer <br/>
<a id="pl.114.14"></a><var>114.14</var>contributions under paragraph (a), clause (2), or paragraph (c), the association must require <br/>
<a id="pl.114.15"></a><var>114.15</var>the employer to discontinue the erroneous employee deductions and erroneous employer <br/>
<a id="pl.114.16"></a><var>114.16</var>contributions reported on behalf of a member. Upon discontinuation, the association must:<br/>
<a id="pl.114.17"></a><var>114.17</var>(1) for a member, provide a refund or credit to the employer in the amount of the <br/>
<a id="pl.114.18"></a><var>114.18</var>invalid employee deductions with interest on the invalid employee deductions at the rate <br/>
<a id="pl.114.19"></a><var>114.19</var>specified under section 
         <statute_ref>353.34, subdivision 2</statute_ref>, from the received date of each invalid salary <br/>
<a id="pl.114.20"></a><var>114.20</var>transaction through the date the credit or refund is made; and the employer must pay the <br/>
<a id="pl.114.21"></a><var>114.21</var>refunded employee deductions plus interest to the member;<br/>
<a id="pl.114.22"></a><var>114.22</var>(2) for a former member who:<br/>
<a id="pl.114.23"></a><var>114.23</var>(i) is not receiving a retirement annuity or benefit, return the erroneous employee <br/>
<a id="pl.114.24"></a><var>114.24</var>deductions to the former member through a refund with interest at the rate specified under <br/>
<a id="pl.114.25"></a><var>114.25</var>section 
         <statute_ref>353.34, subdivision 2</statute_ref>, from the received date of each invalid salary transaction <br/>
<a id="pl.114.26"></a><var>114.26</var>through the date the credit or refund is made; or<br/>
<a id="pl.114.27"></a><var>114.27</var>(ii) is receiving a retirement annuity or disability benefit, or a person who is <br/>
<a id="pl.114.28"></a><var>114.28</var>receiving an optional annuity or survivor benefit, for whom it has been determined an <br/>
<a id="pl.114.29"></a><var>114.29</var>overpayment must be recovered, adjust the payment amount and recover the overpayments <br/>
<a id="pl.114.30"></a><var>114.30</var>as provided under this section; and<br/>
<a id="pl.114.31"></a><var>114.31</var>(3) return the invalid employer contributions reported on behalf of a member or <br/>
<a id="pl.114.32"></a><var>114.32</var>former member to the employer by providing a credit against future contributions payable <br/>
<a id="pl.114.33"></a><var>114.33</var>by the employer.<br/>
<a id="pl.114.34"></a><var>114.34</var>(f) In the event that a salary warrant or check from which a deduction for the <br/>
<a id="pl.114.35"></a><var>114.35</var>retirement fund was taken has been canceled or the amount of the warrant or check <br/>
<a id="pl.114.36"></a><var>114.36</var>returned to the funds of the department making the payment, a refund of the sum <br/>
<a id="pl.115.1"></a><var>115.1</var>deducted, or any portion of it that is required to adjust the deductions, must be made <br/>
<a id="pl.115.2"></a><var>115.2</var>to the department or institution.<br/>
<a id="pl.115.3"></a><var>115.3</var>(g) If the accrual date of any retirement annuity, survivor benefit, or disability benefit <br/>
<a id="pl.115.4"></a><var>115.4</var>is within the limitation period specified in paragraph (c), and an overpayment has resulted <br/>
<a id="pl.115.5"></a><var>115.5</var>by using invalid service or salary, or due to any erroneous calculation procedure, the <br/>
<a id="pl.115.6"></a><var>115.6</var>association must recalculate the annuity or benefit payable and recover any overpayment <br/>
<a id="pl.115.7"></a><var>115.7</var>as provided under subdivision 7b.<br/>
<a id="pl.115.8"></a><var>115.8</var>(h) Notwithstanding the provisions of this subdivision, the association may apply <br/>
<a id="pl.115.9"></a><var>115.9</var>the Revenue Procedures defined in the federal Internal Revenue Service Employee Plans <br/>
<a id="pl.115.10"></a><var>115.10</var>Compliance Resolution System and not issue a refund of erroneous employee deductions <br/>
<a id="pl.115.11"></a><var>115.11</var>and employer contributions or not recover a small overpayment of benefits if the cost to <br/>
<a id="pl.115.12"></a><var>115.12</var>correct the error would exceed the amount of the member refund or overpayment.<br/>
<a id="pl.115.13"></a><var>115.13</var>(i) Any fees or penalties assessed by the federal Internal Revenue Service for any <br/>
<a id="pl.115.14"></a><var>115.14</var>failure by an employer to follow the statutory requirements for reporting eligible members <br/>
<a id="pl.115.15"></a><var>115.15</var>and salary must be paid by the employer.<br/>
<a id="pl.115.16"></a><var>115.16</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.5.11.0"></a><a id="pl.115.17"></a><var>115.17</var>    Sec. 11. Minnesota Statutes 2008, section 353.27, subdivision 10, is amended to read:<br/>
<a id="pl.115.18"></a><var>115.18</var>    Subd. 10. <b>Employer exclusion reports.</b> (a) The head of a department shall annually <br/>
<a id="pl.115.19"></a><var>115.19</var>furnish the executive director with an exclusion report listing only those employees in <br/>
<a id="pl.115.20"></a><var>115.20</var>potentially PERA-eligible positions who were not reported as members of the association <br/>
<a id="pl.115.21"></a><var>115.21</var>and who worked during the school year for school employees and calendar year for <br/>
<a id="pl.115.22"></a><var>115.22</var>nonschool employees. The department head must certify the accuracy and completeness <br/>
<a id="pl.115.23"></a><var>115.23</var>of the exclusion report to the association. The executive director shall prescribe the <br/>
<a id="pl.115.24"></a><var>115.24</var>manner and forms, including standardized exclusion codes, to be used by a governmental <br/>
<a id="pl.115.25"></a><var>115.25</var>subdivision in preparing and filing exclusion reports. Also, the executive director shall <br/>
<a id="pl.115.26"></a><var>115.26</var>also check the exclusion report to ascertain whether any omissions have been made by a <br/>
<a id="pl.115.27"></a><var>115.27</var>department head in the reporting of new public employees for membership. The executive <br/>
<a id="pl.115.28"></a><var>115.28</var>director may delegate an association employee under section 
         <statute_ref>353.03, subdivision 3a</statute_ref>, <br/>
<a id="pl.115.29"></a><var>115.29</var>paragraph (b), clause (5), to conduct a field audit to review the payroll records of a <br/>
<a id="pl.115.30"></a><var>115.30</var>governmental subdivision. <br/>
<a id="pl.115.31"></a><var>115.31</var>(b) If an employer fails to comply with the reporting requirements under this <br/>
<a id="pl.115.32"></a><var>115.32</var>subdivision, the executive director may assess a fine of $25 for each failure if the <br/>
<a id="pl.115.33"></a><var>115.33</var>association staff has notified the employer of the noncompliance and attempted to obtain <br/>
<a id="pl.115.34"></a><var>115.34</var>the missing data or form from the employer for a period of more than three months.<br/>
<a id="pl.116.1"></a><var>116.1</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.5.12.0"></a><a id="pl.116.2"></a><var>116.2</var>    Sec. 12. Minnesota Statutes 2009 Supplement, section 353.371, subdivision 4, is <br/>
<a id="pl.116.3"></a><var>116.3</var>amended to read:<br/>
<a id="pl.116.4"></a><var>116.4</var>    Subd. 4. <b>Duration.</b> Postretirement option employment shall may be for an initial <br/>
<a id="pl.116.5"></a><var>116.5</var>period not to exceed one year. At the end of the initial period, the governing body has sole <br/>
<a id="pl.116.6"></a><var>116.6</var>discretion to determine if the offer of a postretirement option position will be renewed, <br/>
<a id="pl.116.7"></a><var>116.7</var>renewed with modifications, or terminated. Postretirement option employment may be <br/>
<a id="pl.116.8"></a><var>116.8</var>renewed annually, but may not be renewed after the individual attains retirement age as <br/>
<a id="pl.116.9"></a><var>116.9</var>defined in United States Code, title 42, section 416(l) no more than four renewals may <br/>
<a id="pl.116.10"></a><var>116.10</var>occur. <br/>
<a id="pl.116.11"></a><var>116.11</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.5.13.0"></a><a id="pl.116.12"></a><var>116.12</var>    Sec. 13. Minnesota Statutes 2008, section 353D.01, subdivision 2, is amended to read:<br/>
<a id="pl.116.13"></a><var>116.13</var>    Subd. 2. <b>Eligibility.</b> (a) Eligibility to participate in the defined contribution plan <br/>
<a id="pl.116.14"></a><var>116.14</var>is available to:<br/>
<a id="pl.116.15"></a><var>116.15</var>(1) elected local government officials of a governmental subdivision who elect to <br/>
<a id="pl.116.16"></a><var>116.16</var>participate in the plan under section 
         <statute_ref>353D.02, subdivision 1</statute_ref>, and who, for the elected <br/>
<a id="pl.116.17"></a><var>116.17</var>service rendered to a governmental subdivision, are not members of the Public Employees <br/>
<a id="pl.116.18"></a><var>116.18</var>Retirement Association within the meaning of section 
         <statute_ref>353.01, subdivision 7</statute_ref>; <br/>
<a id="pl.116.19"></a><var>116.19</var>(2) physicians who, if they did not elect to participate in the plan under section <br/>
<statute_ref><a id="pl.116.20"></a><var>116.20</var>353D.02, subdivision 2
         </statute_ref>, would meet the definition of member under section 
         <statute_ref>353.01, <br/>
<a id="pl.116.21"></a><var>116.21</var>subdivision 7
         </statute_ref>; <br/>
<a id="pl.116.22"></a><var>116.22</var>(3) basic and advanced life-support emergency medical service personnel who <br/>
<a id="pl.116.23"></a><var>116.23</var>are employed by any public ambulance service that elects to participate under section <br/>
<statute_ref><a id="pl.116.24"></a><var>116.24</var>353D.02, subdivision 3
         </statute_ref>; <br/>
<a id="pl.116.25"></a><var>116.25</var>(4) members of a municipal rescue squad associated with the city of Litchfield <br/>
<a id="pl.116.26"></a><var>116.26</var>in Meeker County, or of a county rescue squad associated with Kandiyohi County, if <br/>
<a id="pl.116.27"></a><var>116.27</var>an independent nonprofit rescue squad corporation, incorporated under chapter 317A, <br/>
<a id="pl.116.28"></a><var>116.28</var>performing emergency management services, and if not affiliated with a fire department <br/>
<a id="pl.116.29"></a><var>116.29</var>or ambulance service and if its members are not eligible for membership in that fire <br/>
<a id="pl.116.30"></a><var>116.30</var>department's or ambulance service's relief association or comparable pension plan; <br/>
<a id="pl.116.31"></a><var>116.31</var>(5) employees of the Port Authority of the city of St. Paul who elect to participate in <br/>
<a id="pl.116.32"></a><var>116.32</var>the plan under section 
         <statute_ref>353D.02, subdivision 5</statute_ref>, and who are not members of the Public <br/>
<a id="pl.116.33"></a><var>116.33</var>Employees Retirement Association under section 
         <statute_ref>353.01, subdivision 7</statute_ref>; <br/>
<a id="pl.117.1"></a><var>117.1</var>(6) city managers who elected to be excluded from the general employees retirement <br/>
<a id="pl.117.2"></a><var>117.2</var>plan of the Public Employees Retirement Association under section 
         <statute_ref>353.028</statute_ref> and who <br/>
<a id="pl.117.3"></a><var>117.3</var>elected to participate in the public employees defined contribution plan under section <br/>
<statute_ref><a id="pl.117.4"></a><var>117.4</var>353.028
         </statute_ref>, subdivision 3, paragraph (b); and<br/>
<a id="pl.117.5"></a><var>117.5</var>(7) volunteer or emergency on-call firefighters serving in a municipal fire department <br/>
<a id="pl.117.6"></a><var>117.6</var>or an independent nonprofit firefighting corporation who are not covered by the public <br/>
<a id="pl.117.7"></a><var>117.7</var>employees police and fire retirement plan and who are not covered by a volunteer <br/>
<a id="pl.117.8"></a><var>117.8</var>firefighters relief association and who elect to participate in the public employees defined <br/>
<a id="pl.117.9"></a><var>117.9</var>contribution plan.;<br/>
<a id="pl.117.10"></a><var>117.10</var>(8) elected county sheriffs who are former members of the police and fire plan and <br/>
<a id="pl.117.11"></a><var>117.11</var>who are receiving a retirement annuity as provided under section 353.651; and<br/>
<a id="pl.117.12"></a><var>117.12</var>(9) persons who are excluded from membership under section 353.01, subdivision <br/>
<a id="pl.117.13"></a><var>117.13</var>2b, paragraph (a), clause (25).<br/>
<a id="pl.117.14"></a><var>117.14</var>(b) For purposes of this chapter, an elected local government official includes <br/>
<a id="pl.117.15"></a><var>117.15</var>a person appointed to fill a vacancy in an elective office. Service as an elected local <br/>
<a id="pl.117.16"></a><var>117.16</var>government official only includes service for the governmental subdivision for which the <br/>
<a id="pl.117.17"></a><var>117.17</var>official was elected by the public at large. Service as an elected local government official <br/>
<a id="pl.117.18"></a><var>117.18</var>ceases and eligibility to participate terminates when the person ceases to be an elected <br/>
<a id="pl.117.19"></a><var>117.19</var>official. An elected local government official does not include an elected county sheriff <br/>
<a id="pl.117.20"></a><var>117.20</var>who must be a member of the police and fire plan as provided under chapter 353.<br/>
<a id="pl.117.21"></a><var>117.21</var>(c) Individuals otherwise eligible to participate in the plan under this subdivision <br/>
<a id="pl.117.22"></a><var>117.22</var>who are currently covered by a public or private pension plan because of their employment <br/>
<a id="pl.117.23"></a><var>117.23</var>or provision of services are not eligible to participate in the public employees defined <br/>
<a id="pl.117.24"></a><var>117.24</var>contribution plan.<br/>
<a id="pl.117.25"></a><var>117.25</var>(d) A former participant is a person who has terminated eligible employment or <br/>
<a id="pl.117.26"></a><var>117.26</var>service and has not withdrawn the value of the person's individual account.<br/>
<a id="pl.117.27"></a><var>117.27</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2010.<br/>
<br/>
<a id="bill.5.14.0"></a><a id="pl.117.28"></a><var>117.28</var>    Sec. 14. Minnesota Statutes 2008, section 353D.03, subdivision 1, is amended to read:<br/>
<a id="pl.117.29"></a><var>117.29</var>    Subdivision 1. <b>Local government official contribution</b><b> Contributions for eligible </b><br/>
<a id="pl.117.30"></a><var>117.30</var><b>participants</b><b>.</b> An (a) The following classes of eligible elected local government official <br/>
<a id="pl.117.31"></a><var>117.31</var>participants who elects elect to participate in the public employees defined contribution <br/>
<a id="pl.117.32"></a><var>117.32</var>plan under section 353D.02 shall contribute an amount equal to five percent of salary as <br/>
<a id="pl.117.33"></a><var>117.33</var>defined in section 
         <statute_ref>353.01, subdivision 10</statute_ref>. A participating:<br/>
<a id="pl.117.34"></a><var>117.34</var>(1) elected local government official's officials;<br/>
<a id="pl.117.35"></a><var>117.35</var>(2) physicians; and<br/>
<a id="pl.118.1"></a><var>118.1</var>(3) persons who are excluded from membership under section 353.01, subdivision <br/>
<a id="pl.118.2"></a><var>118.2</var>2b, clause (25).<br/>
<a id="pl.118.3"></a><var>118.3</var>(b) A participant's governmental subdivision shall contribute a matching amount.  <br/>
<a id="pl.118.4"></a><var>118.4</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2010.<br/>
<br/>
<a id="bill.5.15.0"></a><a id="pl.118.5"></a><var>118.5</var>    Sec. 15. Minnesota Statutes 2008, section 353D.04, subdivision 1, is amended to read:<br/>
<a id="pl.118.6"></a><var>118.6</var>    Subdivision 1. <b>Crediting of </b><b>account</b><b> contributions to participant accounts</b><b>.</b> (a) <br/>
<a id="pl.118.7"></a><var>118.7</var>Contributions made by or on behalf of a participating elected local government official or <br/>
<a id="pl.118.8"></a><var>118.8</var>physician participant under section 353D.03, subdivisions 1, 5, and 6, paragraph (a), must <br/>
<a id="pl.118.9"></a><var>118.9</var>be remitted to the Public Employees Retirement Association and credited to the individual <br/>
<a id="pl.118.10"></a><var>118.10</var>account established for the participant. Ambulance service<br/>
<a id="pl.118.11"></a><var>118.11</var>(b) Contributions as provided under section 353D.03, subdivisions 3, and 6, <br/>
<a id="pl.118.12"></a><var>118.12</var>paragraph (b), must be remitted on a regular basis to the association together with any <br/>
<a id="pl.118.13"></a><var>118.13</var>member contributions paid or withheld. Those contributions must be credited to the <br/>
<a id="pl.118.14"></a><var>118.14</var>individual account of each participating member.<br/>
<a id="pl.118.15"></a><var>118.15</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2010.<br/>
<br/>
<a id="bill.5.16.0"></a><a id="pl.118.16"></a><var>118.16</var>    Sec. 16. Minnesota Statutes 2008, section 353D.04, subdivision 2, is amended to read:<br/>
<a id="pl.118.17"></a><var>118.17</var>    Subd. 2. <b>Authority to adopt policies</b><b> correcting erroneous contributions</b><b>.</b> The <br/>
<a id="pl.118.18"></a><var>118.18</var>executive director may adopt policies and procedures regarding deductions taken totally <br/>
<a id="pl.118.19"></a><var>118.19</var>or partially in error by the employer from the salary of an elected official.<br/>
<a id="pl.118.20"></a><var>118.20</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2010.<br/>
<br/>
<a id="bill.5.17.0"></a><a id="pl.118.21"></a><var>118.21</var>    Sec. 17. Minnesota Statutes 2009 Supplement, section 353F.02, subdivision 4, is <br/>
<a id="pl.118.22"></a><var>118.22</var>amended to read:<br/>
<a id="pl.118.23"></a><var>118.23</var>    Subd. 4. <b>Medical facility.</b> "Medical facility" means:<br/>
<a id="pl.118.24"></a><var>118.24</var>    (1) Bridges Medical Services;<br/>
<a id="pl.118.25"></a><var>118.25</var>    (2) the City of Cannon Falls Hospital;<br/>
<a id="pl.118.26"></a><var>118.26</var>    (3) the Chris Jenson Health and Rehabilitation Center in St. Louis County;<br/>
<a id="pl.118.27"></a><var>118.27</var>(4) Clearwater County Memorial Hospital doing business as Clearwater Health <br/>
<a id="pl.118.28"></a><var>118.28</var>Services in Bagley;<br/>
<a id="pl.118.29"></a><var>118.29</var>    (4) (5) the Dassel Lakeside Community Home;<br/>
<a id="pl.118.30"></a><var>118.30</var>(6) the Douglas County Hospital, with respect to the Mental Health Unit;<br/>
<a id="pl.118.31"></a><var>118.31</var>    (5) (7) the Fair Oaks Lodge, Wadena;<br/>
<a id="pl.118.32"></a><var>118.32</var>    (6) (8) the Glencoe Area Health Center;<br/>
<a id="pl.119.1"></a><var>119.1</var>    (7) (9) Hutchinson Area Health Care;<br/>
<a id="pl.119.2"></a><var>119.2</var>    (8) (10) the Lakefield Nursing Home;<br/>
<a id="pl.119.3"></a><var>119.3</var>    (9) (11) the Lakeview Nursing Home in Gaylord;<br/>
<a id="pl.119.4"></a><var>119.4</var>    (10) (12) the Luverne Public Hospital;<br/>
<a id="pl.119.5"></a><var>119.5</var>    (11) (13) the Oakland Park Nursing Home;<br/>
<a id="pl.119.6"></a><var>119.6</var>    (12) (14) the RenVilla Nursing Home;<br/>
<a id="pl.119.7"></a><var>119.7</var>    (13) (15) the Rice Memorial Hospital in Willmar, with respect to the Department <br/>
<a id="pl.119.8"></a><var>119.8</var>of Radiology and the Department of Radiation/Oncology;<br/>
<a id="pl.119.9"></a><var>119.9</var>(14) (16) the St. Peter Community Health Care Center;<br/>
<a id="pl.119.10"></a><var>119.10</var>    (15) (17) the Waconia-Ridgeview Medical Center; <br/>
<a id="pl.119.11"></a><var>119.11</var>(16) (18) the Weiner Memorial Medical Center, Inc.; and<br/>
<a id="pl.119.12"></a><var>119.12</var>(19) the Wheaton Community Hospital; and<br/>
<a id="pl.119.13"></a><var>119.13</var>(17) (20) the Worthington Regional Hospital.<br/>
<a id="pl.119.14"></a><var>119.14</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.5.18.0"></a><a id="pl.119.15"></a><var>119.15</var>    Sec. 18. Minnesota Statutes 2008, section 353F.025, subdivision 1, is amended to read:<br/>
<a id="pl.119.16"></a><var>119.16</var>    Subdivision 1. <b>Eligibility determination.</b> (a) The chief clerical officer of a <br/>
<a id="pl.119.17"></a><var>119.17</var>governmental subdivision may submit a resolution from the governing body to the <br/>
<a id="pl.119.18"></a><var>119.18</var>executive director of the Public Employees Retirement Association which supports <br/>
<a id="pl.119.19"></a><var>119.19</var>providing coverage under this chapter for employees of that governmental subdivision <br/>
<a id="pl.119.20"></a><var>119.20</var>who are privatized, and which states that the governing body will pay for actuarial <br/>
<a id="pl.119.21"></a><var>119.21</var>calculations, as further specified in paragraph (c). <br/>
<a id="pl.119.22"></a><var>119.22</var>    (b) The governing body must also provide a copy of any applicable purchase or <br/>
<a id="pl.119.23"></a><var>119.23</var>lease agreement and any other information requested by the executive director to allow the <br/>
<a id="pl.119.24"></a><var>119.24</var>executive director to verify that under the proposed employer change, the new employer <br/>
<a id="pl.119.25"></a><var>119.25</var>does not qualify as a governmental subdivision under section 
         <statute_ref>353.01, subdivision 6</statute_ref>, <br/>
<a id="pl.119.26"></a><var>119.26</var>making the employees ineligible for continued coverage as active members of the general <br/>
<a id="pl.119.27"></a><var>119.27</var>employees retirement plan of the Public Employees Retirement Association.<br/>
<a id="pl.119.28"></a><var>119.28</var>    (c) Following receipt of a resolution and a determination by the executive director <br/>
<a id="pl.119.29"></a><var>119.29</var>that the new employer is not a governmental subdivision, the executive director shall <br/>
<a id="pl.119.30"></a><var>119.30</var>direct the consulting actuary retained under section 
         <statute_ref>356.214</statute_ref> to determine whether the <br/>
<a id="pl.119.31"></a><var>119.31</var>general employees retirement plan of the Public Employees Retirement Association, if <br/>
<a id="pl.119.32"></a><var>119.32</var>coverage under this chapter is provided, is expected to receive a net gain or a net loss if <br/>
<a id="pl.119.33"></a><var>119.33</var>privatization occurs, by determining whether. A net gain is expected if the actuarial <br/>
<a id="pl.119.34"></a><var>119.34</var>liability of the special benefit coverage provided under this chapter, if extended to the <br/>
<a id="pl.119.35"></a><var>119.35</var>applicable employees under the privatization, is less than the actuarial gain otherwise to <br/>
<a id="pl.120.1"></a><var>120.1</var>accrue to the plan. A net loss is expected if the actuarial accrued liability of the special <br/>
<a id="pl.120.2"></a><var>120.2</var>benefit coverage provided under this chapter, if extended to the applicable employees <br/>
<a id="pl.120.3"></a><var>120.3</var>under the privatization, is more than the actuarial gain otherwise to accrue to the plan. The <br/>
<a id="pl.120.4"></a><var>120.4</var>date of the actuarial calculations used to make this determination must be within one year <br/>
<a id="pl.120.5"></a><var>120.5</var>of the effective date, as defined in section 
         <statute_ref>353F.02, subdivision 3</statute_ref>.<br/>
<a id="pl.120.6"></a><var>120.6</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.5.19.0"></a><a id="pl.120.7"></a><var>120.7</var>    Sec. 19. Minnesota Statutes 2008, section 353F.025, subdivision 2, is amended to read:<br/>
<a id="pl.120.8"></a><var>120.8</var>    Subd. 2. <b>Recommendation to legislature.</b> (a) If the actuarial calculations under <br/>
<a id="pl.120.9"></a><var>120.9</var>subdivision 1, paragraph (c), indicate that a net gain to the general employees retirement <br/>
<a id="pl.120.10"></a><var>120.10</var>plan of the Public Employees Retirement Association is expected due to the privatization, <br/>
<a id="pl.120.11"></a><var>120.11</var>or if paragraph (c) applies, the executive director shall forward a recommendation and <br/>
<a id="pl.120.12"></a><var>120.12</var>supporting documentation to the chair of the Legislative Commission on Pensions and <br/>
<a id="pl.120.13"></a><var>120.13</var>Retirement, the chair of the Governmental Operations, Reform, Technology and Elections <br/>
<a id="pl.120.14"></a><var>120.14</var>Committee of the house of representatives, the chair of the State and Local Government <br/>
<a id="pl.120.15"></a><var>120.15</var>Operations and Oversight Committee of the senate, and the executive director of the <br/>
<a id="pl.120.16"></a><var>120.16</var>Legislative Commission on Pensions and Retirement. The recommendation must be in <br/>
<a id="pl.120.17"></a><var>120.17</var>the form of an addition to the definition of "medical facility" under section 
         <statute_ref>353F.02, <br/>
<a id="pl.120.18"></a><var>120.18</var>subdivision 4
         </statute_ref>, or to "other public employing unit" under section 
         <statute_ref>353F.02, subdivision 5</statute_ref>, <br/>
<a id="pl.120.19"></a><var>120.19</var>whichever is applicable. The recommendation must be forwarded to the legislature before <br/>
<a id="pl.120.20"></a><var>120.20</var>January 15 for the recommendation to be considered in that year's legislative session. The <br/>
<a id="pl.120.21"></a><var>120.21</var>recommendation may be included as part of public pension administrative legislation <br/>
<a id="pl.120.22"></a><var>120.22</var>under section 356B.05.<br/>
<a id="pl.120.23"></a><var>120.23</var>    (b) If a medical facility or other public employing unit listed under section 
         <statute_ref>353F.02</statute_ref>, <br/>
<a id="pl.120.24"></a><var>120.24</var>subdivision 4 or 5, fails to privatize within one year of the final enactment date of the <br/>
<a id="pl.120.25"></a><var>120.25</var>legislation adding the entity to the applicable definition, its inclusion under this chapter is <br/>
<a id="pl.120.26"></a><var>120.26</var>voided, and the executive director shall include in the subsequent proposed legislation <br/>
<a id="pl.120.27"></a><var>120.27</var>under paragraph (a) a recommendation that the applicable entity be stricken from the <br/>
<a id="pl.120.28"></a><var>120.28</var>definition.<br/>
<a id="pl.120.29"></a><var>120.29</var>(c) If the calculations under subdivision 1, paragraph (c), indicate a net loss, the <br/>
<a id="pl.120.30"></a><var>120.30</var>executive director shall forward a recommendation that the privatization be included as an <br/>
<a id="pl.120.31"></a><var>120.31</var>addition under paragraph (a) if the chief clerical officer of the applicable governmental <br/>
<a id="pl.120.32"></a><var>120.32</var>subdivision submits a resolution from the governing body specifying that a lump sum <br/>
<a id="pl.120.33"></a><var>120.33</var>payment will be made to the executive director equal to the net loss, plus interest. The <br/>
<a id="pl.120.34"></a><var>120.34</var>interest must be computed using the applicable preretirement interest rate assumption <br/>
<a id="pl.120.35"></a><var>120.35</var>under section 356.215, subdivision 8, expressed as a monthly rate, from the date of the <br/>
<a id="pl.121.1"></a><var>121.1</var>actuarial valuation from which the actuarial accrued liability data was used to determine <br/>
<a id="pl.121.2"></a><var>121.2</var>the net loss in the actuarial study under subdivision 1, to the date of payment, with annual <br/>
<a id="pl.121.3"></a><var>121.3</var>compounding. Payment must be made on or after the effective date defined under section <br/>
<a id="pl.121.4"></a><var>121.4</var>353F.02.<br/>
<a id="pl.121.5"></a><var>121.5</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.5.20.0"></a><a id="pl.121.6"></a><var>121.6</var>    Sec. 20. Minnesota Statutes 2008, section 356.96, subdivision 2, is amended to read:<br/>
<a id="pl.121.7"></a><var>121.7</var>    Subd. 2. <b>Right to review.</b> A determination made by the administration chief <br/>
<a id="pl.121.8"></a><var>121.8</var>administrative officer of a covered pension plan regarding a person's eligibility, benefits, <br/>
<a id="pl.121.9"></a><var>121.9</var>or other rights under the plan with which the person does not agree is subject to review <br/>
<a id="pl.121.10"></a><var>121.10</var>under this section.<br/>
<a id="pl.121.11"></a><var>121.11</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.5.21.0"></a><a id="pl.121.12"></a><var>121.12</var>    Sec. 21. Minnesota Statutes 2008, section 356.96, subdivision 3, is amended to read:<br/>
<a id="pl.121.13"></a><var>121.13</var>    Subd. 3. <b>Notice of determination.</b> If the applicable chief administrative officer <br/>
<a id="pl.121.14"></a><var>121.14</var>denies an application or a written request, modifies a benefit, or terminates a benefit <br/>
<a id="pl.121.15"></a><var>121.15</var>of a person claiming a right or potential rights under a covered pension plan, the chief <br/>
<a id="pl.121.16"></a><var>121.16</var>administrative officer shall notify that person through a written notice containing:<br/>
<a id="pl.121.17"></a><var>121.17</var>    (1) a statement of the reasons for the determination;<br/>
<a id="pl.121.18"></a><var>121.18</var>    (2) a notice that the person may petition the governing board of the covered pension <br/>
<a id="pl.121.19"></a><var>121.19</var>plan for a review of the determination and that a person's petition for review must be filed <br/>
<a id="pl.121.20"></a><var>121.20</var>in the administrative office of the covered pension plan within 60 days of the receipt <br/>
<a id="pl.121.21"></a><var>121.21</var>of the written notice of the determination;<br/>
<a id="pl.121.22"></a><var>121.22</var>    (3) a statement indicating that a failure to petition for review within 60 days <br/>
<a id="pl.121.23"></a><var>121.23</var>precludes the person from contesting in any other administrative review or court procedure <br/>
<a id="pl.121.24"></a><var>121.24</var>the issues determined by the chief administrative officer;<br/>
<a id="pl.121.25"></a><var>121.25</var>    (4) a statement indicating that all relevant materials, documents, affidavits, and other <br/>
<a id="pl.121.26"></a><var>121.26</var>records that the person wishes to be reviewed in support of the petition must be filed with <br/>
<a id="pl.121.27"></a><var>121.27</var>and received in the administrative office of the covered pension plan at least 30 15 days <br/>
<a id="pl.121.28"></a><var>121.28</var>before the date of the hearing under subdivision 10; and<br/>
<a id="pl.121.29"></a><var>121.29</var>    (5) a copy summary of this section, including all filing requirements and deadlines.<br/>
<a id="pl.121.30"></a><var>121.30</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.5.22.0"></a><a id="pl.121.31"></a><var>121.31</var>    Sec. 22. Minnesota Statutes 2009 Supplement, section 356.96, subdivision 5, is <br/>
<a id="pl.121.32"></a><var>121.32</var>amended to read:<br/>
<a id="pl.122.1"></a><var>122.1</var>    Subd. 5. <b>Petition for review.</b> (a) A person who claims a right under subdivision 2 <br/>
<a id="pl.122.2"></a><var>122.2</var>may petition for a review of that decision by the governing board of the covered pension <br/>
<a id="pl.122.3"></a><var>122.3</var>plan.<br/>
<a id="pl.122.4"></a><var>122.4</var>    (b) A petition under this section must be sent to the chief administrative officer by <br/>
<a id="pl.122.5"></a><var>122.5</var>mail and must be postmarked no later than 60 days after the person received the notice <br/>
<a id="pl.122.6"></a><var>122.6</var>required by subdivision 3. The petition must include the person's statement of the reason <br/>
<a id="pl.122.7"></a><var>122.7</var>or reasons that the person believes the decision of the chief administrative officer should <br/>
<a id="pl.122.8"></a><var>122.8</var>be reversed or modified. The petition may include all documentation and written materials <br/>
<a id="pl.122.9"></a><var>122.9</var>that the petitioner deems to be relevant. In developing a record for review by the board <br/>
<a id="pl.122.10"></a><var>122.10</var>when a decision is appealed, the executive director chief administrative officer may direct <br/>
<a id="pl.122.11"></a><var>122.11</var>that the applicant participate in a fact-finding session conducted by an administrative law <br/>
<a id="pl.122.12"></a><var>122.12</var>judge assigned by the Office of Administrative Hearings and, as applicable, participate in <br/>
<a id="pl.122.13"></a><var>122.13</var>a vocational assessment conducted by a qualified rehabilitation counselor on contract with <br/>
<a id="pl.122.14"></a><var>122.14</var>the applicable retirement system.<br/>
<a id="pl.122.15"></a><var>122.15</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.5.23.0"></a><a id="pl.122.16"></a><var>122.16</var>    Sec. 23. Minnesota Statutes 2008, section 356.96, subdivision 7, is amended to read:<br/>
<a id="pl.122.17"></a><var>122.17</var>    Subd. 7. <b>Notice of hearing.</b> (a) After receiving a petition, and not less than 30 <br/>
<a id="pl.122.18"></a><var>122.18</var>calendar days from the date of the next regular board meeting, the chief administrative <br/>
<a id="pl.122.19"></a><var>122.19</var>officer must schedule a timely review of the petition before the governing board of the <br/>
<a id="pl.122.20"></a><var>122.20</var>covered pension plan. The review must be scheduled to take into consideration any <br/>
<a id="pl.122.21"></a><var>122.21</var>necessary accommodations to allow the petitioner to participate in the governing board's <br/>
<a id="pl.122.22"></a><var>122.22</var>review.<br/>
<a id="pl.122.23"></a><var>122.23</var>    (b) Not less than 15 30 calendar days before the scheduled hearing date, the chief <br/>
<a id="pl.122.24"></a><var>122.24</var>administrative officer must provide by mail to the petitioner an acknowledgment of the <br/>
<a id="pl.122.25"></a><var>122.25</var>receipt of the person's petition and a follow-up notice of the time and place of the meeting <br/>
<a id="pl.122.26"></a><var>122.26</var>at which the governing board is scheduled to consider the petition and must provide a copy <br/>
<a id="pl.122.27"></a><var>122.27</var>of all relevant documents, evidence, summaries, and recommendations assembled by or <br/>
<a id="pl.122.28"></a><var>122.28</var>on behalf of the plan administration to be considered by the governing board.<br/>
<a id="pl.122.29"></a><var>122.29</var>    (c) Except as provided in subdivision 8, paragraph (c), All documents and materials <br/>
<a id="pl.122.30"></a><var>122.30</var>that the petitioner wishes to be part of the record for review must be filed with the chief <br/>
<a id="pl.122.31"></a><var>122.31</var>administrative officer and must be received in the offices of the covered pension plan <br/>
<a id="pl.122.32"></a><var>122.32</var>at least 30 15 days before the date of the meeting at which the petition is scheduled to <br/>
<a id="pl.122.33"></a><var>122.33</var>be heard.<br/>
<a id="pl.122.34"></a><var>122.34</var>    (d) A petitioner, may request a continuance of a scheduled hearing if the request <br/>
<a id="pl.122.35"></a><var>122.35</var>is received by the chief administrative officer within ten calendar days of the scheduled <br/>
<a id="pl.123.1"></a><var>123.1</var>date of the applicable board meeting, may request a continuance on a scheduled petition. <br/>
<a id="pl.123.2"></a><var>123.2</var>The chief administrative officer must reschedule the review within 60 days of the date <br/>
<a id="pl.123.3"></a><var>123.3</var>of the continuance request a reasonable time. Only one continuance may be granted to <br/>
<a id="pl.123.4"></a><var>123.4</var>any petitioner.<br/>
<a id="pl.123.5"></a><var>123.5</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.5.24.0"></a><a id="pl.123.6"></a><var>123.6</var>    Sec. 24. Minnesota Statutes 2008, section 356.96, subdivision 8, is amended to read:<br/>
<a id="pl.123.7"></a><var>123.7</var>    Subd. 8. <b>Record for review.</b> (a) All evidence, including all records, documents, and <br/>
<a id="pl.123.8"></a><var>123.8</var>affidavits in the possession of the covered pension plan of which the covered pension plan <br/>
<a id="pl.123.9"></a><var>123.9</var>desires to avail itself and be considered by the governing board, and all evidence which the <br/>
<a id="pl.123.10"></a><var>123.10</var>petitioner wishes to present to the governing board, including any evidence which would <br/>
<a id="pl.123.11"></a><var>123.11</var>otherwise be classified by law as "private," must be made part of the hearing record.<br/>
<a id="pl.123.12"></a><var>123.12</var>    (b) Not later than The chief administrative officer must provide a copy of the record <br/>
<a id="pl.123.13"></a><var>123.13</var>to each member of the governing board at least seven days before the scheduled hearing <br/>
<a id="pl.123.14"></a><var>123.14</var>date, the chief administrative officer must provide a copy of the record to each member <br/>
<a id="pl.123.15"></a><var>123.15</var>of the governing board.<br/>
<a id="pl.123.16"></a><var>123.16</var>    (c) At least five days before the hearing, the petitioner may submit to the chief <br/>
<a id="pl.123.17"></a><var>123.17</var>administrative officer, for submission to the governing board, Any additional document, <br/>
<a id="pl.123.18"></a><var>123.18</var>affidavit, or other relevant information that was not initially submitted with the petition <br/>
<a id="pl.123.19"></a><var>123.19</var>the petitioner requests be part of the record may be admitted with the consent of the <br/>
<a id="pl.123.20"></a><var>123.20</var>governing board.<br/>
<a id="pl.123.21"></a><var>123.21</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.5.25.0"></a><a id="pl.123.22"></a><var>123.22</var>    Sec. 25. Laws 2009, chapter 169, article 4, section 49, is amended to read:<br/>
<a id="pl.123.23"></a><var>123.23</var>    Sec. 49. <b>CITY OF DULUTH AND DULUTH AIRPORT AUTHORITY</b><b> AND </b><br/>
<a id="pl.123.24"></a><var>123.24</var><b>CITY OF VIRGINIA</b><b>; CORRECTING ERRONEOUS EMPLOYEE DEDUCTIONS, </b><br/>
<a id="pl.123.25"></a><var>123.25</var><b>EMPLOYER CONTRIBUTIONS AND ADJUSTING OVERPAID BENEFITS.</b><br/>
<a id="pl.123.26"></a><var>123.26</var>    Subdivision 1. <b>Application.</b> Notwithstanding any provisions of Minnesota Statutes, <br/>
<a id="pl.123.27"></a><var>123.27</var>section 
         <statute_ref>353.27, subdivisions 7</statute_ref> and 7b, or Minnesota Statutes 2008, chapters 353 and <br/>
<a id="pl.123.28"></a><var>123.28</var>356, to the contrary, this section establishes the procedures by which the executive <br/>
<a id="pl.123.29"></a><var>123.29</var>director of the Public Employees Retirement Association shall adjust erroneous employee <br/>
<a id="pl.123.30"></a><var>123.30</var>deductions and employer contributions paid on behalf of active employees and former <br/>
<a id="pl.123.31"></a><var>123.31</var>members by the city of Duluth and, by the Duluth Airport Authority, and by the city <br/>
<a id="pl.123.32"></a><var>123.32</var>of Virginia on amounts determined by the executive director to be invalid salary under <br/>
<a id="pl.123.33"></a><var>123.33</var>Minnesota Statutes, section 
         <statute_ref>353.01, subdivision 10</statute_ref>, reported between January 1, 1997, <br/>
<a id="pl.124.1"></a><var>124.1</var>and October 23, 2008, and for adjusting benefits that were paid to former members and <br/>
<a id="pl.124.2"></a><var>124.2</var>their beneficiaries based upon invalid salary amounts.<br/>
<a id="pl.124.3"></a><var>124.3</var>    Subd. 2. <b>Refunds of employee deductions.</b> (a) The executive director shall refund <br/>
<a id="pl.124.4"></a><var>124.4</var>to active employees or former members who are not receiving retirement annuities or <br/>
<a id="pl.124.5"></a><var>124.5</var>benefits all erroneous employee deductions identified by the city of Duluth or, by the <br/>
<a id="pl.124.6"></a><var>124.6</var>Duluth Airport Authority, or by the city of Virginia as deductions taken from amounts <br/>
<a id="pl.124.7"></a><var>124.7</var>determined to be invalid salary. The refunds must include interest at the rate specified in <br/>
<a id="pl.124.8"></a><var>124.8</var>Minnesota Statutes, section 
         <statute_ref>353.34, subdivision 2</statute_ref>, from the date each invalid employee <br/>
<a id="pl.124.9"></a><var>124.9</var>deduction was received through the date each refund is paid.<br/>
<a id="pl.124.10"></a><var>124.10</var>(b) The refund payment for active employees must be sent to the applicable <br/>
<a id="pl.124.11"></a><var>124.11</var>governmental subdivision which must pay the refunded employee deductions plus interest <br/>
<a id="pl.124.12"></a><var>124.12</var>to the active home addresses of the members who are employees of the city of Duluth <br/>
<a id="pl.124.13"></a><var>124.13</var>or, who are employees of the Duluth Airport Authority, or who are employees of the city <br/>
<a id="pl.124.14"></a><var>124.14</var>of Virginia, as applicable.<br/>
<a id="pl.124.15"></a><var>124.15</var>(c) Refunds to former members must be mailed by the executive director of the <br/>
<a id="pl.124.16"></a><var>124.16</var>Public Employees Retirement Association to the former member's last known address.<br/>
<a id="pl.124.17"></a><var>124.17</var>    Subd. 3. <b>Benefit adjustments.</b> (a) For a former member who is receiving a <br/>
<a id="pl.124.18"></a><var>124.18</var>retirement annuity or disability benefit, or for a person receiving an optional annuity or <br/>
<a id="pl.124.19"></a><var>124.19</var>survivor benefit, the executive director must:<br/>
<a id="pl.124.20"></a><var>124.20</var>(1) adjust the annuity or benefit payment to the correct monthly benefit amount <br/>
<a id="pl.124.21"></a><var>124.21</var>payable by reducing the average salary under Minnesota Statutes, section 
         <statute_ref>353.01, <br/>
<a id="pl.124.22"></a><var>124.22</var>subdivision 17a
         </statute_ref>, by the invalid salary amounts;<br/>
<a id="pl.124.23"></a><var>124.23</var>(2) determine the amount of the overpaid benefits paid from the effective date of <br/>
<a id="pl.124.24"></a><var>124.24</var>the annuity or benefit payment to the first of the month in which the monthly benefit <br/>
<a id="pl.124.25"></a><var>124.25</var>amount is corrected;<br/>
<a id="pl.124.26"></a><var>124.26</var>(3) calculate the amount of employee deductions taken in error on invalid salary, <br/>
<a id="pl.124.27"></a><var>124.27</var>including interest at the rate specified in Minnesota Statutes, section 
         <statute_ref>353.34, subdivision 2</statute_ref>, <br/>
<a id="pl.124.28"></a><var>124.28</var>from the date each invalid employee deduction was received through the date the annuity <br/>
<a id="pl.124.29"></a><var>124.29</var>or benefit is adjusted as provided under clause (1); and<br/>
<a id="pl.124.30"></a><var>124.30</var>(4) determine the net amount of overpaid benefits by reducing the amount of the <br/>
<a id="pl.124.31"></a><var>124.31</var>overpaid annuity or benefit as determined in clause (2) by the amount of the erroneous <br/>
<a id="pl.124.32"></a><var>124.32</var>employee deductions with interest as determined in clause (3).<br/>
<a id="pl.124.33"></a><var>124.33</var>(b) If a former member's erroneous employee deductions plus interest determined <br/>
<a id="pl.124.34"></a><var>124.34</var>under this section exceeds the amount of the person's overpaid benefits, the balance must <br/>
<a id="pl.124.35"></a><var>124.35</var>be refunded to the person to whom the annuity or benefit is being paid.<br/>
<a id="pl.125.1"></a><var>125.1</var>(c) The executive director shall recover the net amount of all overpaid annuities or <br/>
<a id="pl.125.2"></a><var>125.2</var>benefits as provided under subdivision 4.<br/>
<a id="pl.125.3"></a><var>125.3</var>    Subd. 4. <b>Employer credits and obligations.</b> (a) The executive director shall <br/>
<a id="pl.125.4"></a><var>125.4</var>provide a credit without interest to the city of Duluth and, to the Duluth Airport Authority, <br/>
<a id="pl.125.5"></a><var>125.5</var>and to the city of Virginia, as applicable, for the amount of that governmental subdivision's <br/>
<a id="pl.125.6"></a><var>125.6</var>erroneous employer contributions. The credit must first be used to offset the net amount of <br/>
<a id="pl.125.7"></a><var>125.7</var>the overpaid retirement annuities and the disability and survivor benefits that remains after <br/>
<a id="pl.125.8"></a><var>125.8</var>applying the amount of erroneous employee deductions with interest as provided under <br/>
<a id="pl.125.9"></a><var>125.9</var>subdivision 3, paragraph (a), clause (4). The remaining erroneous employer contributions, <br/>
<a id="pl.125.10"></a><var>125.10</var>if any, must be credited against future employer contributions required to be paid by <br/>
<a id="pl.125.11"></a><var>125.11</var>the applicable governmental subdivision. If the overpaid benefits exceed the employer <br/>
<a id="pl.125.12"></a><var>125.12</var>contribution credit, the balance of the overpaid benefits is the obligation of the city of <br/>
<a id="pl.125.13"></a><var>125.13</var>Duluth or, the Duluth Airport Authority, or the city of Virginia, whichever is applicable.<br/>
<a id="pl.125.14"></a><var>125.14</var>(b) The Public Employees Retirement Association board of trustees shall determine <br/>
<a id="pl.125.15"></a><var>125.15</var>the period of time and manner for the collection of overpaid retirement annuities and <br/>
<a id="pl.125.16"></a><var>125.16</var>benefits, if any, from the city of Duluth and, the Duluth Airport Authority, and the city of <br/>
<a id="pl.125.17"></a><var>125.17</var>Virginia.<br/>
<a id="pl.125.18"></a><var>125.18</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.5.26.0"></a><a id="pl.125.19"></a><var>125.19</var>    Sec. 26. Laws 2009, chapter 169, article 4, section 49, the effective date, is amended to <br/>
<a id="pl.125.20"></a><var>125.20</var>read:<br/>
<a id="pl.125.21"></a><var>125.21</var><b>EFFECTIVE DATE.</b>(a) This section is effective for the city of Duluth the day after <br/>
<a id="pl.125.22"></a><var>125.22</var>the Duluth city council and the chief clerical officer of the city of Duluth timely complete <br/>
<a id="pl.125.23"></a><var>125.23</var>their compliance with Minnesota Statutes, section 
         <statute_ref>645.021, subdivisions 2</statute_ref> and 3, for <br/>
<a id="pl.125.24"></a><var>125.24</var>members who are, and former members who were, employees of the city of Duluth.<br/>
<a id="pl.125.25"></a><var>125.25</var>(b) This section is effective for the Duluth Airport Authority the day after the Duluth <br/>
<a id="pl.125.26"></a><var>125.26</var>Airport Authority and the chief clerical officer of the Duluth Airport Authority timely <br/>
<a id="pl.125.27"></a><var>125.27</var>complete their compliance with Minnesota Statutes, section 
         <statute_ref>645.021, subdivisions 2</statute_ref> <br/>
<a id="pl.125.28"></a><var>125.28</var>and 3, for members who are, and former members who were, employees of the Duluth <br/>
<a id="pl.125.29"></a><var>125.29</var>Airport Authority.<br/>
<a id="pl.125.30"></a><var>125.30</var>(c) This section is effective for the city of Virginia the day after the Virginia <br/>
<a id="pl.125.31"></a><var>125.31</var>city council and the chief clerical officer of the city of Virginia timely complete their <br/>
<a id="pl.125.32"></a><var>125.32</var>compliance with Minnesota Statutes, section 645.021, subdivisions 2 and 3, for members <br/>
<a id="pl.125.33"></a><var>125.33</var>who are, and former members who were, employees of the city of Virginia. If this section <br/>
<a id="pl.125.34"></a><var>125.34</var>becomes effective for the city of Virginia, it applies retroactively from June 23, 2009.<br/>
<a id="pl.126.1"></a><var>126.1</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.5.27.0"></a><a id="pl.126.2"></a><var>126.2</var>    Sec. 27. Laws 2009, chapter 169, article 5, section 2, the effective date, is amended to <br/>
<a id="pl.126.3"></a><var>126.3</var>read:<br/>
<a id="pl.126.4"></a><var>126.4</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment <br/>
<a id="pl.126.5"></a><var>126.5</var>and expires on June 30, 2011 2014. Individuals must not be appointed to a postretirement <br/>
<a id="pl.126.6"></a><var>126.6</var>option position after that date.<br/>
<a id="pl.126.7"></a><var>126.7</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.5.28.0"></a><a id="pl.126.8"></a><var>126.8</var>    Sec. 28. <b> REPEALER.</b><br/>
<a id="pl.126.9"></a><var>126.9</var>(a) Minnesota Statutes 2008, section 353.01, subdivision 40, is repealed effective <br/>
<a id="pl.126.10"></a><var>126.10</var>July 1, 2010.<br/>
<a id="pl.126.11"></a><var>126.11</var>(b) Minnesota Statutes 2008, sections 353.46, subdivision 1a; and 353D.03, <br/>
<a id="pl.126.12"></a><var>126.12</var>subdivision 2, are repealed the day following final enactment.<br/>
<a id="pl.126.13"></a><var>126.13</var>(c) Minnesota Statutes 2008, section 353D.12, is repealed effective July 1, 2011.<br/>
<br/>
<a id="bill.6.0.0"></a>

<a id="pl.126.16"></a><var>126.16</var><b>RETIREMENT PLAN</b><br/>

<a id="bill.6.1.0"></a><a id="pl.126.17"></a><var>126.17</var>    Section 1. Minnesota Statutes 2008, section 69.051, subdivision 3, is amended to read:<br/>
<a id="pl.126.18"></a><var>126.18</var>    Subd. 3. <b>Report by certain municipalities.</b> (a) Each municipality which has <br/>
<a id="pl.126.19"></a><var>126.19</var>an organized fire department but which does not have a firefighters' relief association <br/>
<a id="pl.126.20"></a><var>126.20</var>governed by section 69.77 or sections 69.771 to 69.775 and which is not exempted <br/>
<a id="pl.126.21"></a><var>126.21</var>under paragraph (b) shall annually prepare a detailed financial report of the receipts and <br/>
<a id="pl.126.22"></a><var>126.22</var>disbursements by the municipality for fire protection service during the preceding calendar <br/>
<a id="pl.126.23"></a><var>126.23</var>year, on a form prescribed by the state auditor. The financial report shall must contain any <br/>
<a id="pl.126.24"></a><var>126.24</var>information which the state auditor deems necessary to disclose the sources of receipts <br/>
<a id="pl.126.25"></a><var>126.25</var>and the purpose of disbursements for fire protection service. The financial report shall <br/>
<a id="pl.126.26"></a><var>126.26</var>must be signed by the municipal clerk or clerk-treasurer of the municipality. The financial <br/>
<a id="pl.126.27"></a><var>126.27</var>report shall must be filed by the municipal clerk or clerk-treasurer with the state auditor on <br/>
<a id="pl.126.28"></a><var>126.28</var>or before July 1 annually. The state auditor shall forward one copy to the county auditor of <br/>
<a id="pl.126.29"></a><var>126.29</var>the county wherein the municipality is located. The municipality shall not qualify initially <br/>
<a id="pl.126.30"></a><var>126.30</var>to receive, or be entitled subsequently to retain, state aid pursuant to under this chapter if <br/>
<a id="pl.126.31"></a><var>126.31</var>the financial reporting requirement or the applicable requirements of this chapter or any <br/>
<a id="pl.126.32"></a><var>126.32</var>other statute or special law have not been complied with or are not fulfilled.<br/>
<a id="pl.127.1"></a><var>127.1</var>(b) Each municipality that has an organized fire department and provides retirement <br/>
<a id="pl.127.2"></a><var>127.2</var>coverage to its firefighters through the voluntary statewide lump-sum volunteer firefighter <br/>
<a id="pl.127.3"></a><var>127.3</var>retirement plan under chapter 353G qualifies to have fire state aid transmitted to and <br/>
<a id="pl.127.4"></a><var>127.4</var>retained in the statewide lump-sum volunteer firefighter retirement fund without filing <br/>
<a id="pl.127.5"></a><var>127.5</var>a detailed financial report if the executive director of the Public Employees Retirement <br/>
<a id="pl.127.6"></a><var>127.6</var>Association certifies compliance by the municipality with the requirements of sections <br/>
<a id="pl.127.7"></a><var>127.7</var>353G.04 and 353G.08, paragraph (e), and by the applicable fire chief with the requirements <br/>
<a id="pl.127.8"></a><var>127.8</var>of section 353G.07.<br/>
<a id="pl.127.9"></a><var>127.9</var><b>EFFECTIVE DATE.</b>This section is effective retroactively from January 1, 2010.<br/>
<br/>
<a id="bill.6.2.0"></a><a id="pl.127.10"></a><var>127.10</var>    Sec. 2. Minnesota Statutes 2009 Supplement, section 353G.05, subdivision 2, is <br/>
<a id="pl.127.11"></a><var>127.11</var>amended to read:<br/>
<a id="pl.127.12"></a><var>127.12</var>    Subd. 2. <b>Election of coverage.</b> (a) The process for electing coverage of volunteer <br/>
<a id="pl.127.13"></a><var>127.13</var>firefighters by the retirement plan is initiated by a request to the executive director for a <br/>
<a id="pl.127.14"></a><var>127.14</var>cost analysis of the prospective retirement coverage.<br/>
<a id="pl.127.15"></a><var>127.15</var>(b) If the volunteer firefighters are currently covered by a volunteer firefighters' relief <br/>
<a id="pl.127.16"></a><var>127.16</var>association governed by chapter 424A, the cost analysis of the prospective retirement <br/>
<a id="pl.127.17"></a><var>127.17</var>coverage must be requested jointly by the secretary of the volunteer firefighters' relief <br/>
<a id="pl.127.18"></a><var>127.18</var>association, following approval of the request by the board of the volunteer firefighters' <br/>
<a id="pl.127.19"></a><var>127.19</var>relief association, and the chief administrative officer of the entity associated with the <br/>
<a id="pl.127.20"></a><var>127.20</var>relief association, following approval of the request by the governing body of the entity <br/>
<a id="pl.127.21"></a><var>127.21</var>associated with the relief association. If the relief association is associated with more than <br/>
<a id="pl.127.22"></a><var>127.22</var>one entity, the chief administrative officer of each associated entity must execute the <br/>
<a id="pl.127.23"></a><var>127.23</var>request. If the volunteer firefighters are not currently covered by a volunteer firefighters' <br/>
<a id="pl.127.24"></a><var>127.24</var>relief association, the cost analysis of the prospective retirement coverage must be <br/>
<a id="pl.127.25"></a><var>127.25</var>requested by the chief administrative officer of the entity operating the fire department. <br/>
<a id="pl.127.26"></a><var>127.26</var>The request must be made in writing and must be made on a form prescribed by the <br/>
<a id="pl.127.27"></a><var>127.27</var>executive director.<br/>
<a id="pl.127.28"></a><var>127.28</var>(c) The cost analysis of the prospective retirement coverage by the statewide <br/>
<a id="pl.127.29"></a><var>127.29</var>retirement plan must be based on the service pension amount under section 
         <statute_ref>353G.11 <br/>
</statute_ref><a id="pl.127.30"></a><var>127.30</var>closest to the service pension amount provided by the volunteer firefighters' relief <br/>
<a id="pl.127.31"></a><var>127.31</var>association, if there is one the relief association is a lump-sum defined benefit plan, or <br/>
<a id="pl.127.32"></a><var>127.32</var>the amount equal to 95 percent of the most current average account balance per relief <br/>
<a id="pl.127.33"></a><var>127.33</var>association member if the relief association is a defined contribution plan, or to the <br/>
<a id="pl.127.34"></a><var>127.34</var>lowest service pension amount under section 
         <statute_ref>353G.11 </statute_ref>if there is no volunteer firefighters' <br/>
<a id="pl.127.35"></a><var>127.35</var>relief association, rounded up, and any other service pension amount designated by <br/>
<a id="pl.128.1"></a><var>128.1</var>the requester or requesters. The cost analysis must be prepared using a mathematical <br/>
<a id="pl.128.2"></a><var>128.2</var>procedure certified as accurate by an approved actuary retained by the Public Employees <br/>
<a id="pl.128.3"></a><var>128.3</var>Retirement Association.<br/>
<a id="pl.128.4"></a><var>128.4</var>(d) If a cost analysis is requested and a volunteer firefighters' relief association exists <br/>
<a id="pl.128.5"></a><var>128.5</var>that has filed the information required under section 
         <statute_ref>69.051</statute_ref> in a timely fashion, upon <br/>
<a id="pl.128.6"></a><var>128.6</var>request by the executive director, the state auditor shall provide the most recent data <br/>
<a id="pl.128.7"></a><var>128.7</var>available on the financial condition of the volunteer firefighters' relief association, the most <br/>
<a id="pl.128.8"></a><var>128.8</var>recent firefighter demographic data available, and a copy of the current relief association <br/>
<a id="pl.128.9"></a><var>128.9</var>bylaws. If a cost analysis is requested, but no volunteer firefighters' relief association <br/>
<a id="pl.128.10"></a><var>128.10</var>exists, the chief administrative officer of the entity operating the fire department shall <br/>
<a id="pl.128.11"></a><var>128.11</var>provide the demographic information on the volunteer firefighters serving as members <br/>
<a id="pl.128.12"></a><var>128.12</var>of the fire department requested by the executive director.<br/>
<a id="pl.128.13"></a><var>128.13</var>(e) If a cost analysis is requested, the executive director of the State Board of <br/>
<a id="pl.128.14"></a><var>128.14</var>Investment shall review the investment portfolio of the relief association, if applicable, <br/>
<a id="pl.128.15"></a><var>128.15</var>for compliance with the applicable provisions of chapter 11A and for appropriateness <br/>
<a id="pl.128.16"></a><var>128.16</var>for retention under the established investment objectives and investment policies of the <br/>
<a id="pl.128.17"></a><var>128.17</var>State Board of Investment. If the prospective retirement coverage change is approved <br/>
<a id="pl.128.18"></a><var>128.18</var>under paragraph (f), the State Board of Investment may require that the relief association <br/>
<a id="pl.128.19"></a><var>128.19</var>liquidate any investment security or other asset which the executive director of the State <br/>
<a id="pl.128.20"></a><var>128.20</var>Board of Investment has determined to be an ineligible or inappropriate investment for <br/>
<a id="pl.128.21"></a><var>128.21</var>retention by the State Board of Investment. The security or asset liquidation must occur <br/>
<a id="pl.128.22"></a><var>128.22</var>before the effective date of the transfer of retirement plan coverage. If requested to do <br/>
<a id="pl.128.23"></a><var>128.23</var>so by the chief administrative officer of the relief association, the executive director of <br/>
<a id="pl.128.24"></a><var>128.24</var>the State Board of Investment shall provide advice about the best means to conduct the <br/>
<a id="pl.128.25"></a><var>128.25</var>liquidation.<br/>
<a id="pl.128.26"></a><var>128.26</var>(f) Upon receipt of the cost analysis, the governing body of the municipality <br/>
<a id="pl.128.27"></a><var>128.27</var>or independent nonprofit firefighting corporation associated with the fire department <br/>
<a id="pl.128.28"></a><var>128.28</var>shall either approve or disapprove the retirement coverage change within 90 days. If <br/>
<a id="pl.128.29"></a><var>128.29</var>the retirement coverage change is not acted upon within 90 days, it is deemed to be <br/>
<a id="pl.128.30"></a><var>128.30</var>disapproved. If the retirement coverage change is approved by the applicable governing <br/>
<a id="pl.128.31"></a><var>128.31</var>body, coverage by the voluntary statewide lump-sum volunteer firefighter retirement plan <br/>
<a id="pl.128.32"></a><var>128.32</var>is effective on the next following January 1.<br/>
<a id="pl.128.33"></a><var>128.33</var><b>EFFECTIVE DATE.</b>This section is effective retroactively from January 1, 2010.<br/>
<br/>
<a id="bill.6.3.0"></a><a id="pl.128.34"></a><var>128.34</var>    Sec. 3. Minnesota Statutes 2009 Supplement, section 353G.06, subdivision 1, is <br/>
<a id="pl.128.35"></a><var>128.35</var>amended to read:<br/>
<a id="pl.129.1"></a><var>129.1</var>    Subdivision 1. <b>Special fund disestablishment.</b> (a) On the date immediately prior <br/>
<a id="pl.129.2"></a><var>129.2</var>to the effective date of the coverage change, the special fund of the applicable volunteer <br/>
<a id="pl.129.3"></a><var>129.3</var>firefighters' relief association, if one exists, ceases to exist as a pension fund of the <br/>
<a id="pl.129.4"></a><var>129.4</var>association and legal title to the assets of the special fund transfers to the State Board of <br/>
<a id="pl.129.5"></a><var>129.5</var>Investment, with the beneficial title to the assets of the special fund remaining in the <br/>
<a id="pl.129.6"></a><var>129.6</var>applicable volunteer firefighters.<br/>
<a id="pl.129.7"></a><var>129.7</var>(b) If the market value of the special fund of the volunteer firefighters' relief <br/>
<a id="pl.129.8"></a><var>129.8</var>association for which retirement coverage changed under this chapter declines in the <br/>
<a id="pl.129.9"></a><var>129.9</var>interval between the date of the most recent financial report or statement, and the special <br/>
<a id="pl.129.10"></a><var>129.10</var>fund disestablishment date, the applicable municipality shall transfer an additional amount <br/>
<a id="pl.129.11"></a><var>129.11</var>to the State Board of Investment equal to that decline. If more than one municipality is <br/>
<a id="pl.129.12"></a><var>129.12</var>responsible for the direct management of the fire department, the municipalities shall <br/>
<a id="pl.129.13"></a><var>129.13</var>allocate the additional transfer amount among the various applicable municipalities <br/>
<a id="pl.129.14"></a><var>129.14</var>one-half in proportion to the population of each municipality and one-half in proportion <br/>
<a id="pl.129.15"></a><var>129.15</var>to the market value of each municipality.<br/>
<a id="pl.129.16"></a><var>129.16</var><b>EFFECTIVE DATE.</b>This section is effective retroactively from January 1, 2010.<br/>
<br/>
<a id="bill.6.4.0"></a><a id="pl.129.17"></a><var>129.17</var>    Sec. 4. Minnesota Statutes 2009 Supplement, section 353G.08, is amended to read:<br/>
<a id="pl.129.18"></a><var>129.18</var><b>353G.08 RETIREMENT PLAN FUNDING; DISBURSEMENTS.</b><br/>
<a id="pl.129.19"></a><var>129.19</var>    Subdivision 1. <b>Annual funding requirements.</b> (a) Annually, the executive director <br/>
<a id="pl.129.20"></a><var>129.20</var>shall determine the funding requirements of each account in the voluntary statewide <br/>
<a id="pl.129.21"></a><var>129.21</var>lump-sum volunteer firefighter retirement plan on or before August 1. The funding <br/>
<a id="pl.129.22"></a><var>129.22</var>requirements as directed under this section, must be determined using a mathematical <br/>
<a id="pl.129.23"></a><var>129.23</var>procedure developed and certified as accurate by an approved actuary retained by the <br/>
<a id="pl.129.24"></a><var>129.24</var>Public Employees Retirement Association and based on present value factors using a six <br/>
<a id="pl.129.25"></a><var>129.25</var>percent interest rate, without any decrement assumptions. The funding requirements <br/>
<a id="pl.129.26"></a><var>129.26</var>must be certified to the entity or entities associated with the fire department whose active <br/>
<a id="pl.129.27"></a><var>129.27</var>firefighters are covered by the retirement plan.<br/>
<a id="pl.129.28"></a><var>129.28</var>(b) The overall funding balance of each account for the current calendar year must <br/>
<a id="pl.129.29"></a><var>129.29</var>be determined in the following manner:<br/>
<a id="pl.129.30"></a><var>129.30</var>(1) The total accrued liability for all active and deferred members of the account as <br/>
<a id="pl.129.31"></a><var>129.31</var>of December 31 of the current year must be calculated based on the good time service <br/>
<a id="pl.129.32"></a><var>129.32</var>credit of active and deferred members as of that date.<br/>
<a id="pl.129.33"></a><var>129.33</var>(2) The total present assets of the account projected to December 31 of the current <br/>
<a id="pl.129.34"></a><var>129.34</var>year, including receipts by and disbursements from the account anticipated to occur on or <br/>
<a id="pl.130.1"></a><var>130.1</var>before December 31, must be calculated. To the extent possible, the market value of assets <br/>
<a id="pl.130.2"></a><var>130.2</var>must be utilized in making this calculation.<br/>
<a id="pl.130.3"></a><var>130.3</var>(3) The amount of the total present assets calculated under clause (2) must be <br/>
<a id="pl.130.4"></a><var>130.4</var>subtracted from the amount of the total accrued liability calculated under clause (1). If the <br/>
<a id="pl.130.5"></a><var>130.5</var>amount of total present assets exceeds the amount of the total accrued liability, then the <br/>
<a id="pl.130.6"></a><var>130.6</var>account is considered to have a surplus over full funding. If the amount of the total present <br/>
<a id="pl.130.7"></a><var>130.7</var>assets is less than the amount of the total accrued liability, then the account is considered <br/>
<a id="pl.130.8"></a><var>130.8</var>to have a deficit from full funding. If the amount of total present assets is equal to the <br/>
<a id="pl.130.9"></a><var>130.9</var>amount of the total accrued liability, then the special fund is considered to be fully funded.<br/>
<a id="pl.130.10"></a><var>130.10</var>(c) The financial requirements of each account for the following calendar year must <br/>
<a id="pl.130.11"></a><var>130.11</var>be determined in the following manner:<br/>
<a id="pl.130.12"></a><var>130.12</var>(1) The total accrued liability for all active and deferred members of the account <br/>
<a id="pl.130.13"></a><var>130.13</var>as of December 31 of the calendar year next following the current calendar year must be <br/>
<a id="pl.130.14"></a><var>130.14</var>calculated based on the good time service used in the calculation under paragraph (b), <br/>
<a id="pl.130.15"></a><var>130.15</var>clause (1), increased by one year.<br/>
<a id="pl.130.16"></a><var>130.16</var>(2) The increase in the total accrued liability of the account for the following calendar <br/>
<a id="pl.130.17"></a><var>130.17</var>year over the total accrued liability of the account for the current year must be calculated.<br/>
<a id="pl.130.18"></a><var>130.18</var>(3) The amount of anticipated future administrative expenses of the account must be <br/>
<a id="pl.130.19"></a><var>130.19</var>calculated by multiplying the dollar amount of the administrative expenses for the most <br/>
<a id="pl.130.20"></a><var>130.20</var>recent prior calendar year by the factor of 1.035.<br/>
<a id="pl.130.21"></a><var>130.21</var>(4) If the account is fully funded, the financial requirement of the account for the <br/>
<a id="pl.130.22"></a><var>130.22</var>following calendar year is the total of the amounts calculated under clauses (2) and (3).<br/>
<a id="pl.130.23"></a><var>130.23</var>(5) If the account has a deficit from full funding, the financial requirement of the <br/>
<a id="pl.130.24"></a><var>130.24</var>account for the following calendar year is the total of the amounts calculated under clauses <br/>
<a id="pl.130.25"></a><var>130.25</var>(2) and (3) plus an amount equal to one-tenth of the amount of the deficit from full <br/>
<a id="pl.130.26"></a><var>130.26</var>funding of the account.<br/>
<a id="pl.130.27"></a><var>130.27</var>(6) If the account has a surplus over full funding, the financial requirement of <br/>
<a id="pl.130.28"></a><var>130.28</var>the account for the following calendar year is the financial requirement of the account <br/>
<a id="pl.130.29"></a><var>130.29</var>calculated as though the account was fully funded under clause (4) and, if the account has <br/>
<a id="pl.130.30"></a><var>130.30</var>also had a surplus over full funding during the prior two years, additionally reduced by an <br/>
<a id="pl.130.31"></a><var>130.31</var>amount equal to one-tenth of the amount of the surplus over full funding of the account.<br/>
<a id="pl.130.32"></a><var>130.32</var>(d) The required contribution of the entity or entities associated with the fire <br/>
<a id="pl.130.33"></a><var>130.33</var>department whose active firefighters are covered by the retirement plan is the annual <br/>
<a id="pl.130.34"></a><var>130.34</var>financial requirements of the account of the retirement plan under paragraph (c) reduced <br/>
<a id="pl.130.35"></a><var>130.35</var>by the amount of any fire state aid payable under sections 69.011 to 69.051 reasonably <br/>
<a id="pl.130.36"></a><var>130.36</var>anticipated to be received by the retirement plan attributable to the entity or entities during <br/>
<a id="pl.131.1"></a><var>131.1</var>the following calendar year, and an amount of interest on the assets projected to be <br/>
<a id="pl.131.2"></a><var>131.2</var>received during the following calendar year calculated at the rate of six percent per annum. <br/>
<a id="pl.131.3"></a><var>131.3</var>The required contribution must be allocated between the entities if more than one entity <br/>
<a id="pl.131.4"></a><var>131.4</var>is involved. A reasonable amount of anticipated fire state aid is an amount that does not <br/>
<a id="pl.131.5"></a><var>131.5</var>exceed the fire state aid actually received in the prior year multiplied by the factor 
         <statute_ref>1.035</statute_ref>.<br/>
<a id="pl.131.6"></a><var>131.6</var>(e) The required contribution calculated in paragraph (d) must be paid to the <br/>
<a id="pl.131.7"></a><var>131.7</var>retirement plan on or before December 31 of the year for which it was calculated. If <br/>
<a id="pl.131.8"></a><var>131.8</var>the contribution is not received by the retirement plan by December 31, it is payable <br/>
<a id="pl.131.9"></a><var>131.9</var>with interest at an annual compound rate of six percent from the date due until the date <br/>
<a id="pl.131.10"></a><var>131.10</var>payment is received by the retirement plan. If the entity does not pay the full amount of <br/>
<a id="pl.131.11"></a><var>131.11</var>the required contribution, the executive director shall collect the unpaid amount under <br/>
<a id="pl.131.12"></a><var>131.12</var>section 
         <statute_ref>353.28, subdivision 6</statute_ref>.<br/>
<a id="pl.131.13"></a><var>131.13</var>    Subd. 2. <b>Cash flow funding requirement.</b> If the executive director determines that <br/>
<a id="pl.131.14"></a><var>131.14</var>an account in the voluntary statewide lump-sum volunteer firefighter retirement plan has <br/>
<a id="pl.131.15"></a><var>131.15</var>insufficient assets to meet the service pensions determined payable from the account, <br/>
<a id="pl.131.16"></a><var>131.16</var>the executive director shall certify the amount of the potential service pension shortfall <br/>
<a id="pl.131.17"></a><var>131.17</var>to the municipality or municipalities and the municipality or municipalities shall make <br/>
<a id="pl.131.18"></a><var>131.18</var>an additional employer contribution to the account within ten days of the certification. <br/>
<a id="pl.131.19"></a><var>131.19</var>If more than one municipality is associated with the account, unless the municipalities <br/>
<a id="pl.131.20"></a><var>131.20</var>agree to a different allocation, the municipalities shall allocate the additional employer <br/>
<a id="pl.131.21"></a><var>131.21</var>contribution one-half in proportion to the population of each municipality and one-half in <br/>
<a id="pl.131.22"></a><var>131.22</var>proportion to the market value of the property of each municipality.<br/>
<a id="pl.131.23"></a><var>131.23</var>    Subd. 3. <b>Authorized account disbursements.</b> (f) The assets of the retirement <br/>
<a id="pl.131.24"></a><var>131.24</var>fund may only be disbursed for:<br/>
<a id="pl.131.25"></a><var>131.25</var>(1) the administrative expenses of the retirement plan;<br/>
<a id="pl.131.26"></a><var>131.26</var>(2) the investment expenses of the retirement fund; <br/>
<a id="pl.131.27"></a><var>131.27</var>(3) the service pensions payable under section 
         <statute_ref>353G.10</statute_ref>, 
         <statute_ref>353G.11</statute_ref>, 
         <statute_ref>353G.14</statute_ref>, or <br/>
<statute_ref><a id="pl.131.28"></a><var>131.28</var>353G.15
         </statute_ref>; and <br/>
<a id="pl.131.29"></a><var>131.29</var>(4) the survivor benefits payable under section 
         <statute_ref>353G.12</statute_ref>; and<br/>
<a id="pl.131.30"></a><var>131.30</var>(5) the disability benefit coverage insurance premiums under section 353G.115.<br/>
<a id="pl.131.31"></a><var>131.31</var><b>EFFECTIVE DATE.</b>This section is effective retroactively from January 1, 2010.<br/>
<br/>
<a id="bill.6.5.0"></a><a id="pl.131.32"></a><var>131.32</var>    Sec. 5. Minnesota Statutes 2009 Supplement, section 353G.09, subdivision 3, is <br/>
<a id="pl.131.33"></a><var>131.33</var>amended to read:<br/>
<a id="pl.132.1"></a><var>132.1</var>    Subd. 3. <b>Alternative pension eligibility and computation.</b> (a) An active member <br/>
<a id="pl.132.2"></a><var>132.2</var>of the retirement plan is entitled to an alternative lump-sum service pension from the <br/>
<a id="pl.132.3"></a><var>132.3</var>retirement plan if the person:<br/>
<a id="pl.132.4"></a><var>132.4</var>(1) has separated from active service with the fire department for at least 30 days;<br/>
<a id="pl.132.5"></a><var>132.5</var>(2) has attained the age of at least 50 years or the age for receipt of a service pension <br/>
<a id="pl.132.6"></a><var>132.6</var>under the benefit plan of the applicable former volunteer firefighters' relief association <br/>
<a id="pl.132.7"></a><var>132.7</var>as of the date immediately prior to the election of the retirement coverage change, <br/>
<a id="pl.132.8"></a><var>132.8</var>whichever is later;<br/>
<a id="pl.132.9"></a><var>132.9</var>(3) has completed at least five years of active service with the fire department and at <br/>
<a id="pl.132.10"></a><var>132.10</var>least five years in total as a member of the applicable former volunteer firefighters' relief <br/>
<a id="pl.132.11"></a><var>132.11</var>association or of the retirement plan, but has not rendered at least five years of good time <br/>
<a id="pl.132.12"></a><var>132.12</var>service credit as a member of the retirement plan; and<br/>
<a id="pl.132.13"></a><var>132.13</var>(4) applies in a manner prescribed by the executive director for the service pension.<br/>
<a id="pl.132.14"></a><var>132.14</var>(b) If retirement coverage prior to statewide retirement plan coverage was provided <br/>
<a id="pl.132.15"></a><var>132.15</var>by a defined benefit plan volunteer firefighters relief association, the alternative lump-sum <br/>
<a id="pl.132.16"></a><var>132.16</var>service pension is the service pension amount specified in the bylaws of the applicable <br/>
<a id="pl.132.17"></a><var>132.17</var>former volunteer firefighters' relief association either as of the date immediately prior to <br/>
<a id="pl.132.18"></a><var>132.18</var>the election of the retirement coverage change or as of the date immediately before the <br/>
<a id="pl.132.19"></a><var>132.19</var>termination of firefighting services, whichever is earlier, multiplied by the total number <br/>
<a id="pl.132.20"></a><var>132.20</var>of years of service as a member of that volunteer firefighters' relief association and as <br/>
<a id="pl.132.21"></a><var>132.21</var>a member of the retirement plan. If retirement coverage prior to statewide retirement <br/>
<a id="pl.132.22"></a><var>132.22</var>plan coverage was provided by a defined contribution plan volunteer firefighters relief <br/>
<a id="pl.132.23"></a><var>132.23</var>association, the alternative lump-sum service pension is an amount equal to the person's <br/>
<a id="pl.132.24"></a><var>132.24</var>account balance as of the date immediately prior to the date on which statewide retirement <br/>
<a id="pl.132.25"></a><var>132.25</var>plan coverage was first provided to the person plus six percent annual compound interest <br/>
<a id="pl.132.26"></a><var>132.26</var>from that date until the date immediately prior to the date of retirement.<br/>
<a id="pl.132.27"></a><var>132.27</var><b>EFFECTIVE DATE.</b>This section is effective retroactively from January 1, 2010.<br/>
<br/>
<a id="bill.6.6.0"></a><a id="pl.132.28"></a><var>132.28</var>    Sec. 6. Minnesota Statutes 2009 Supplement, section 353G.11, subdivision 1, is <br/>
<a id="pl.132.29"></a><var>132.29</var>amended to read:<br/>
<a id="pl.132.30"></a><var>132.30</var>    Subdivision 1. <b>Levels.</b> The retirement plan provides the following levels of service <br/>
<a id="pl.132.31"></a><var>132.31</var>pension amounts to be selected at the election of coverage, or, if fully funded, thereafter:<br/>
<table>
<col width="50px"/>
<col width="2.4"/>
<col width="6.3"/>
<col width="21.200000000000003"/>
<tr>
<td><a id="pl.132.32"></a><var>132.32</var><br/>
</td>
<td></td>
<td>Level A<br/>
</td>
<td>$500 per year of good time service credit<br/>
</td>
</tr>
<tr>
<td><a id="pl.132.33"></a><var>132.33</var><br/>
</td>
<td></td>
<td>Level B<br/>
</td>
<td>$750 $600 per year of good time service credit<br/>
</td>
</tr>
<tr>
<td><a id="pl.132.34"></a><var>132.34</var><br/>
</td>
<td></td>
<td>Level C<br/>
</td>
<td>$700 per year of good time service credit<br/>
</td>
</tr>
<tr>
<td><a id="pl.132.35"></a><var>132.35</var><br/>
</td>
<td></td>
<td>Level D<br/>
</td>
<td>$800 per year of good time service credit<br/>
</td>
</tr>
<tr>
<td><a id="pl.133.1"></a><var>133.1</var><br/>
</td>
<td></td>
<td>Level E<br/>
</td>
<td>$900 per year of good time service credit<br/>
</td>
</tr>
<tr>
<td><a id="pl.133.2"></a><var>133.2</var><br/>
</td>
<td></td>
<td>Level CF<br/>
</td>
<td>$1,000 per year of good time service credit<br/>
</td>
</tr>
<tr>
<td><a id="pl.133.3"></a><var>133.3</var><br/>
</td>
<td></td>
<td>Level G<br/>
</td>
<td>$1,250 per year of good time service credit<br/>
</td>
</tr>
<tr>
<td><a id="pl.133.4"></a><var>133.4</var><br/>
</td>
<td></td>
<td>Level DH<br/>
</td>
<td>$1,500 per year of good time service credit<br/>
</td>
</tr>
<tr>
<td><a id="pl.133.5"></a><var>133.5</var><br/>
</td>
<td></td>
<td>Level EI<br/>
</td>
<td>$2,000 per year of good time service credit<br/>
</td>
</tr>
<tr>
<td><a id="pl.133.6"></a><var>133.6</var><br/>
</td>
<td></td>
<td>Level FJ<br/>
</td>
<td>$2,500 per year of good time service credit<br/>
</td>
</tr>
<tr>
<td><a id="pl.133.7"></a><var>133.7</var><br/>
</td>
<td></td>
<td>Level GK<br/>
</td>
<td>$3,000 per year of good time service credit<br/>
</td>
</tr>
<tr>
<td><a id="pl.133.8"></a><var>133.8</var><br/>
</td>
<td></td>
<td>Level HL<br/>
</td>
<td>$3,500 per year of good time service credit<br/>
</td>
</tr>
<tr>
<td><a id="pl.133.9"></a><var>133.9</var><br/>
</td>
<td></td>
<td>Level IM<br/>
</td>
<td>$4,000 per year of good time service credit<br/>
</td>
</tr>
<tr>
<td><a id="pl.133.10"></a><var>133.10</var><br/>
</td>
<td></td>
<td>Level JN<br/>
</td>
<td>$4,500 per year of good time service credit<br/>
</td>
</tr>
<tr>
<td><a id="pl.133.11"></a><var>133.11</var><br/>
</td>
<td></td>
<td>Level KO<br/>
</td>
<td>$5,000 per year of good time service credit<br/>
</td>
</tr>
<tr>
<td><a id="pl.133.12"></a><var>133.12</var><br/>
</td>
<td></td>
<td>Level LP<br/>
</td>
<td>$5,500 per year of good time service credit<br/>
</td>
</tr>
<tr>
<td><a id="pl.133.13"></a><var>133.13</var><br/>
</td>
<td></td>
<td>Level MQ<br/>
</td>
<td>$6,000 per year of good time service credit<br/>
</td>
</tr>
<tr>
<td><a id="pl.133.14"></a><var>133.14</var><br/>
</td>
<td></td>
<td>Level NR<br/>
</td>
<td>$6,500 per year of good time service credit<br/>
</td>
</tr>
<tr>
<td><a id="pl.133.15"></a><var>133.15</var><br/>
</td>
<td></td>
<td>Level OS<br/>
</td>
<td>$7,000 per year of good time service credit<br/>
</td>
</tr>
<tr>
<td><a id="pl.133.16"></a><var>133.16</var><br/>
</td>
<td></td>
<td>Level PT<br/>
</td>
<td>$7,500 per year of good time service credit<br/>
</td>
</tr>
</table><a id="pl.133.17"></a><var>133.17</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2010.<br/>
<br/>
<a id="bill.6.7.0"></a><a id="pl.133.18"></a><var>133.18</var>    Sec. 7. Minnesota Statutes 2009 Supplement, section 353G.11, is amended by adding a <br/>
<a id="pl.133.19"></a><var>133.19</var>subdivision to read:<br/>
<a id="pl.133.20"></a><var>133.20</var>    Subd. 1a. <b>Continuation of prior service pension levels.</b> If a municipality or <br/>
<a id="pl.133.21"></a><var>133.21</var>independent nonprofit firefighting corporation elects to be covered by the retirement <br/>
<a id="pl.133.22"></a><var>133.22</var>plan prior to January 1, 2010, and selects the $750 per year of good time service credit <br/>
<a id="pl.133.23"></a><var>133.23</var>service pension amount effective for January 1, 2010, that level continues for the volunteer <br/>
<a id="pl.133.24"></a><var>133.24</var>firefighters of that municipality or independent nonprofit firefighting corporation until a <br/>
<a id="pl.133.25"></a><var>133.25</var>different service pension amount is selected under subdivision 2 after January 1, 2010.<br/>
<a id="pl.133.26"></a><var>133.26</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2010.<br/>
<br/>
<a id="bill.6.8.0"></a><a id="pl.133.27"></a><var>133.27</var>    Sec. 8. <b>[353G.115] DISABILITY BENEFIT COVERAGE; AUTHORITY FOR </b><br/>
<a id="pl.133.28"></a><var>133.28</var><b>CASUALTY INSURANCE.</b><br/>
<a id="pl.133.29"></a><var>133.29</var>(a) Except as provided in paragraph (b), no disability benefit is payable from the <br/>
<a id="pl.133.30"></a><var>133.30</var>statewide retirement plan.<br/>
<a id="pl.133.31"></a><var>133.31</var>(b) If the board approves the arrangement, disability coverage for statewide <br/>
<a id="pl.133.32"></a><var>133.32</var>retirement plan members may be provided through a group disability insurance policy <br/>
<a id="pl.133.33"></a><var>133.33</var>obtained from an insurance company licensed to do business in this state. The voluntary <br/>
<a id="pl.133.34"></a><var>133.34</var>statewide lump-sum volunteer retirement plan is authorized to pay the premium for the <br/>
<a id="pl.133.35"></a><var>133.35</var>disability insurance authorized by this paragraph. The proportional amount of the total <br/>
<a id="pl.134.1"></a><var>134.1</var>annual disability insurance premium must be added to the required contribution amount <br/>
<a id="pl.134.2"></a><var>134.2</var>determined under section 353G.08.<br/>
<a id="pl.134.3"></a><var>134.3</var><b>EFFECTIVE DATE.</b>This section is effective retroactively from January 1, 2010.<br/>
<br/>
<a id="bill.6.9.0"></a><a id="pl.134.4"></a><var>134.4</var>    Sec. 9. Minnesota Statutes 2009 Supplement, section 424A.08, is amended to read:<br/>
<a id="pl.134.5"></a><var>134.5</var><b>424A.08 MUNICIPALITY WITHOUT RELIEF ASSOCIATION; </b><br/>
<a id="pl.134.6"></a><var>134.6</var><b>AUTHORIZED DISBURSEMENTS.</b><br/>
<a id="pl.134.7"></a><var>134.7</var>(a) Any qualified municipality which is entitled to receive fire state aid but which <br/>
<a id="pl.134.8"></a><var>134.8</var>has no volunteer firefighters' relief association directly associated with its fire department <br/>
<a id="pl.134.9"></a><var>134.9</var>and which has no full-time firefighters with retirement coverage by the public employees <br/>
<a id="pl.134.10"></a><var>134.10</var>police and fire retirement plan shall deposit the fire state aid in a special account <br/>
<a id="pl.134.11"></a><var>134.11</var>established for that purpose in the municipal treasury. Disbursement from the special <br/>
<a id="pl.134.12"></a><var>134.12</var>account may not be made for any purpose except:<br/>
<a id="pl.134.13"></a><var>134.13</var>(1) payment of the fees, dues and assessments to the Minnesota State Fire <br/>
<a id="pl.134.14"></a><var>134.14</var>Department Association and to the state Volunteer Firefighters' Benefit Association in <br/>
<a id="pl.134.15"></a><var>134.15</var>order to entitle its firefighters to membership in and the benefits of these state associations;<br/>
<a id="pl.134.16"></a><var>134.16</var>(2) payment of the cost of purchasing and maintaining needed equipment for the <br/>
<a id="pl.134.17"></a><var>134.17</var>fire department; and<br/>
<a id="pl.134.18"></a><var>134.18</var>(3) payment of the cost of construction, acquisition, repair, or maintenance of <br/>
<a id="pl.134.19"></a><var>134.19</var>buildings or other premises to house the equipment of the fire department.<br/>
<a id="pl.134.20"></a><var>134.20</var>(b) A qualified municipality which is entitled to receive fire state aid, which has no <br/>
<a id="pl.134.21"></a><var>134.21</var>volunteer firefighters' relief association directly associated with its fire department, which <br/>
<a id="pl.134.22"></a><var>134.22</var>does not participate in the voluntary statewide lump-sum volunteer firefighter retirement <br/>
<a id="pl.134.23"></a><var>134.23</var>plan under chapter 353G, and which has full-time firefighters with retirement coverage <br/>
<a id="pl.134.24"></a><var>134.24</var>by the public employees police and fire retirement plan may disburse the fire state aid as <br/>
<a id="pl.134.25"></a><var>134.25</var>provided in paragraph (a), for the payment of the employer contribution requirement with <br/>
<a id="pl.134.26"></a><var>134.26</var>respect to firefighters covered by the public employees police and fire retirement plan under <br/>
<a id="pl.134.27"></a><var>134.27</var>section 
         <statute_ref>353.65, subdivision 3</statute_ref>, or for a combination of the two types of disbursements.<br/>
<a id="pl.134.28"></a><var>134.28</var>(c) A municipality that has no volunteer firefighters' relief association directly <br/>
<a id="pl.134.29"></a><var>134.29</var>associated with it and that participates in the voluntary statewide lump-sum volunteer <br/>
<a id="pl.134.30"></a><var>134.30</var>firefighter retirement plan under chapter 353G shall transmit any fire state aid that it <br/>
<a id="pl.134.31"></a><var>134.31</var>receives to the voluntary statewide lump-sum volunteer firefighter retirement fund.<br/>
<a id="pl.134.32"></a><var>134.32</var><b>EFFECTIVE DATE.</b>This section is effective retroactively from January 1, 2010.<br/>
<br/>
<a id="bill.7.0.0"></a>

<a id="pl.135.3"></a><var>135.3</var><b>PROCEDURE REVISIONS</b><br/>

<a id="bill.7.1.0"></a><a id="pl.135.4"></a><var>135.4</var>    Section 1. Minnesota Statutes 2008, section 354.05, is amended by adding a <br/>
<a id="pl.135.5"></a><var>135.5</var>subdivision to read:<br/>
<a id="pl.135.6"></a><var>135.6</var>    Subd. 41. <b>Annual base salary.</b> (a) "Annual base salary" means:<br/>
<a id="pl.135.7"></a><var>135.7</var>(1) for an independent school district or educational cooperative, the lowest full-time <br/>
<a id="pl.135.8"></a><var>135.8</var>Bachelor of Arts (BA) base contract salary for the previous fiscal year for that employing <br/>
<a id="pl.135.9"></a><var>135.9</var>unit;<br/>
<a id="pl.135.10"></a><var>135.10</var>(2) for a charter school, the lowest starting annual salary for a full-time licensed <br/>
<a id="pl.135.11"></a><var>135.11</var>teacher employed during the previous fiscal year for that employing unit; and<br/>
<a id="pl.135.12"></a><var>135.12</var>(3) for a state agency or professional organization, the lowest starting annual salary <br/>
<a id="pl.135.13"></a><var>135.13</var>for a full-time Teachers Retirement Association covered position for the previous fiscal <br/>
<a id="pl.135.14"></a><var>135.14</var>year for that employing unit.<br/>
<a id="pl.135.15"></a><var>135.15</var>(b) If there is no previous fiscal year data because an employer unit is new and <br/>
<a id="pl.135.16"></a><var>135.16</var>paragraph (c) does not apply, the annual base salary for the first year of operation will be <br/>
<a id="pl.135.17"></a><var>135.17</var>as provided in paragraph (a), except that the base contract salary for the current fiscal year, <br/>
<a id="pl.135.18"></a><var>135.18</var>rather than the previous fiscal year, must be used.<br/>
<a id="pl.135.19"></a><var>135.19</var>(c) For a new employer unit created as a result of a merger or consolidation, the <br/>
<a id="pl.135.20"></a><var>135.20</var>annual base salary must be the lowest annual base salary as specified in paragraph (a) for <br/>
<a id="pl.135.21"></a><var>135.21</var>any of the employer units involved in the merger or consolidation.<br/>
<a id="pl.135.22"></a><var>135.22</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2012.<br/>
<br/>
<a id="bill.7.2.0"></a><a id="pl.135.23"></a><var>135.23</var>    Sec. 2. Minnesota Statutes 2008, section 354.07, subdivision 5, is amended to read:<br/>
<a id="pl.135.24"></a><var>135.24</var>    Subd. 5. <b>Records; accounts; interest.</b> The board shall keep a record of the <br/>
<a id="pl.135.25"></a><var>135.25</var>receipts and disbursements of the fund and a separate account with each member of <br/>
<a id="pl.135.26"></a><var>135.26</var>the association. The board shall also keep separate accounts for annuity payments, for <br/>
<a id="pl.135.27"></a><var>135.27</var>employer contributions and all other necessary accounts and reserves. It shall determine <br/>
<a id="pl.135.28"></a><var>135.28</var>annually the annual interest earnings of the fund which shall include realized capital gains <br/>
<a id="pl.135.29"></a><var>135.29</var>and losses. Any amount in the capital reserve account on July 1, 1973, shall be transferred <br/>
<a id="pl.135.30"></a><var>135.30</var>to the employer contribution's account. The annual interest earnings shall be apportioned <br/>
<a id="pl.135.31"></a><var>135.31</var>and credited to the separate members' accounts except those covered under the provisions <br/>
<a id="pl.135.32"></a><var>135.32</var>of section 
         <statute_ref>354.44, subdivision 6</statute_ref> or 7. The rate to be used in this distribution computed to <br/>
<a id="pl.135.33"></a><var>135.33</var>the last full quarter percent shall be determined by dividing the interest earnings by the <br/>
<a id="pl.135.34"></a><var>135.34</var>total invested assets of the fund. The excess of the annual interest earnings in the excess <br/>
<a id="pl.136.1"></a><var>136.1</var>earnings reserve which was not credited to the various accounts shall be credited to the <br/>
<a id="pl.136.2"></a><var>136.2</var>gross interest earnings for the next succeeding year. <br/>
<br/>
<a id="bill.7.3.0"></a><a id="pl.136.3"></a><var>136.3</var>    Sec. 3. Minnesota Statutes 2008, section 354.091, is amended to read:<br/>
<a id="pl.136.4"></a><var>136.4</var><b>354.091 SERVICE CREDIT.</b><br/>
<a id="pl.136.5"></a><var>136.5</var>    Subdivision 1. <b>Definition; monthly base salary.</b> For purposes of this section, <br/>
<a id="pl.136.6"></a><var>136.6</var>"monthly base salary" means the annual base salary, as defined in section 354.05, <br/>
<a id="pl.136.7"></a><var>136.7</var>subdivision 41, divided by 12.<br/>
<a id="pl.136.8"></a><var>136.8</var>    Subd. 2. <b>Service credit annual limit.</b> (a) In computing service credit, No teacher <br/>
<a id="pl.136.9"></a><var>136.9</var>may receive credit for more than one year of teaching service for any fiscal year. <br/>
<a id="pl.136.10"></a><var>136.10</var>Additionally, in crediting allowable service:<br/>
<a id="pl.136.11"></a><var>136.11</var>(1) if a teacher teaches less than five hours in a day, service credit must be given for <br/>
<a id="pl.136.12"></a><var>136.12</var>the fractional part of the day as the term of service performed bears to five hours;<br/>
<a id="pl.136.13"></a><var>136.13</var>(2) if a teacher teaches five or more hours in a day, service credit must be given for <br/>
<a id="pl.136.14"></a><var>136.14</var>only one day;<br/>
<a id="pl.136.15"></a><var>136.15</var>(3) if a teacher teaches at least 170 full days in any fiscal year, service credit must be <br/>
<a id="pl.136.16"></a><var>136.16</var>given for a full year of teaching service; and<br/>
<a id="pl.136.17"></a><var>136.17</var>(4) if a teacher teaches for only a fractional part of the year, service credit must be <br/>
<a id="pl.136.18"></a><var>136.18</var>given for such fractional part of the year in the same relationship as the period of service <br/>
<a id="pl.136.19"></a><var>136.19</var>performed bears to 170 days.<br/>
<a id="pl.136.20"></a><var>136.20</var>(b) A teacher must receive a full year of service credit based on the number of days <br/>
<a id="pl.136.21"></a><var>136.21</var>in the employer's full school year if that school year is less than 170 days. Teaching <br/>
<a id="pl.136.22"></a><var>136.22</var>service performed before July 1, 1961, must be computed under the law in effect at the <br/>
<a id="pl.136.23"></a><var>136.23</var>time it was performed.<br/>
<a id="pl.136.24"></a><var>136.24</var>(c) A teacher must not lose or gain retirement service credit as a result of the <br/>
<a id="pl.136.25"></a><var>136.25</var>employer converting to a flexible or alternate work schedule. If the employer converts <br/>
<a id="pl.136.26"></a><var>136.26</var>to a flexible or alternate work schedule, the forms for reporting teaching service and the <br/>
<a id="pl.136.27"></a><var>136.27</var>procedures for determining service credit must be determined by the executive director <br/>
<a id="pl.136.28"></a><var>136.28</var>with the approval of the board of trustees.<br/>
<a id="pl.136.29"></a><var>136.29</var>    Subd. 3. <b>Service credit calculation.</b> (a) Except as specified in subdivisions 4 and <br/>
<a id="pl.136.30"></a><var>136.30</var>5, service credit must be calculated monthly by dividing the teacher's monthly salary by <br/>
<a id="pl.136.31"></a><var>136.31</var>the monthly base salary for the teacher's employing unit and multiplying the result by <br/>
<a id="pl.136.32"></a><var>136.32</var>11.1 percent.<br/>
<a id="pl.136.33"></a><var>136.33</var>(b) For purposes of computing service credit, salary must be allocated to each <br/>
<a id="pl.136.34"></a><var>136.34</var>calendar month based on the pay period begin and end dates. If the pay period covers <br/>
<a id="pl.137.1"></a><var>137.1</var>more than one calendar month, the salary must be allocated based on the number of days <br/>
<a id="pl.137.2"></a><var>137.2</var>in each calendar month.<br/>
<a id="pl.137.3"></a><var>137.3</var>(c) A teacher may not receive more than 11.1 percent of a year's service credit in <br/>
<a id="pl.137.4"></a><var>137.4</var>a calendar month.<br/>
<a id="pl.137.5"></a><var>137.5</var>(d) Annual service credit must be calculated by adding the allowable monthly <br/>
<a id="pl.137.6"></a><var>137.6</var>service credit for all 12 months of the fiscal year, with the result rounded to two decimal <br/>
<a id="pl.137.7"></a><var>137.7</var>places, subject to the annual limit specified in subdivision 2.<br/>
<a id="pl.137.8"></a><var>137.8</var>    Subd. 4. <b>Service credit determination for Minnesota State Colleges and </b><br/>
<a id="pl.137.9"></a><var>137.9</var><b>Universities system teachers.</b> (d) For all services rendered on or after July 1, 2003, <br/>
<a id="pl.137.10"></a><var>137.10</var>service credit for all members employed by the Minnesota State Colleges and Universities <br/>
<a id="pl.137.11"></a><var>137.11</var>system must be determined:<br/>
<a id="pl.137.12"></a><var>137.12</var>(1) for full-time employees, by the definition of full-time employment contained in <br/>
<a id="pl.137.13"></a><var>137.13</var>the collective bargaining agreement for those units listed in section 
         <statute_ref>179A.10, subdivision <br/>
<a id="pl.137.14"></a><var>137.14</var>2
         </statute_ref>, or contained in the applicable personnel or salary plan for those positions designated in <br/>
<a id="pl.137.15"></a><var>137.15</var>section 
         <statute_ref>179A.10, subdivision 1</statute_ref>; and<br/>
<a id="pl.137.16"></a><var>137.16</var>(2) for part-time employees, by the appropriate proration of full-time equivalency <br/>
<a id="pl.137.17"></a><var>137.17</var>based on the provisions contained in the collective bargaining agreement for those units <br/>
<a id="pl.137.18"></a><var>137.18</var>listed in section 
         <statute_ref>179A.10, subdivision 2</statute_ref>, or contained in the applicable personnel or salary <br/>
<a id="pl.137.19"></a><var>137.19</var>plan for those positions designated in section 
         <statute_ref>179A.10, subdivision 1</statute_ref>, and the applicable <br/>
<a id="pl.137.20"></a><var>137.20</var>procedures of the Minnesota State Colleges and Universities system; and.<br/>
<a id="pl.137.21"></a><var>137.21</var>(3) in no case may a member receive more than one year of service credit for any <br/>
<a id="pl.137.22"></a><var>137.22</var>fiscal year.<br/>
<a id="pl.137.23"></a><var>137.23</var>    Subd. 5. <b>Service credit procedure, nontraditional schedules.</b> For employer units <br/>
<a id="pl.137.24"></a><var>137.24</var>that have nontraditional work schedules or pay schedules, the procedure for determining <br/>
<a id="pl.137.25"></a><var>137.25</var>service credit must be specified by the executive director with the approval of the board of <br/>
<a id="pl.137.26"></a><var>137.26</var>trustees.<br/>
<a id="pl.137.27"></a><var>137.27</var><b>EFFECTIVE DATE.</b>This section is effective for teaching service performed after <br/>
<a id="pl.137.28"></a><var>137.28</var>June 30, 2012.<br/>
<br/>
<a id="bill.7.4.0"></a><a id="pl.137.29"></a><var>137.29</var>    Sec. 4. Minnesota Statutes 2009 Supplement, section 354.52, subdivision 4b, is <br/>
<a id="pl.137.30"></a><var>137.30</var>amended to read:<br/>
<a id="pl.137.31"></a><var>137.31</var>    Subd. 4b. <b>Payroll cycle reporting requirements.</b> An employing unit shall provide <br/>
<a id="pl.137.32"></a><var>137.32</var>the following data to the association for payroll warrants on an ongoing basis within 14 <br/>
<a id="pl.137.33"></a><var>137.33</var>calendar days after the date of the payroll warrant in a format prescribed by the executive <br/>
<a id="pl.137.34"></a><var>137.34</var>director:<br/>
<a id="pl.137.35"></a><var>137.35</var>(1) association member number;<br/>
<a id="pl.138.1"></a><var>138.1</var>(2) employer-assigned employee number;<br/>
<a id="pl.138.2"></a><var>138.2</var>(3) Social Security number;<br/>
<a id="pl.138.3"></a><var>138.3</var>(4) amount of each salary deduction;<br/>
<a id="pl.138.4"></a><var>138.4</var>(5) amount of salary as defined in section 
         <statute_ref>354.05, subdivision 35</statute_ref>, from which each <br/>
<a id="pl.138.5"></a><var>138.5</var>deduction was made; <br/>
<a id="pl.138.6"></a><var>138.6</var>(6) reason for payment;<br/>
<a id="pl.138.7"></a><var>138.7</var>(7) service credit;<br/>
<a id="pl.138.8"></a><var>138.8</var>(8) (7) the beginning and ending dates of the payroll period covered and the date <br/>
<a id="pl.138.9"></a><var>138.9</var>of actual payment;<br/>
<a id="pl.138.10"></a><var>138.10</var>(9) (8) fiscal year of salary earnings;<br/>
<a id="pl.138.11"></a><var>138.11</var>(10) (9) total remittance amount including employee, employer, and additional <br/>
<a id="pl.138.12"></a><var>138.12</var>employer contributions; <br/>
<a id="pl.138.13"></a><var>138.13</var>(11) (10) reemployed annuitant salary under section 
         <statute_ref>354.44, subdivision 5</statute_ref>; and<br/>
<a id="pl.138.14"></a><var>138.14</var>(12) (11) other information as may be required by the executive director.<br/>
<a id="pl.138.15"></a><var>138.15</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2012.<br/>
<br/>
<a id="bill.7.5.0"></a><a id="pl.138.16"></a><var>138.16</var>    Sec. 5. Minnesota Statutes 2008, section 354.52, is amended by adding a subdivision <br/>
<a id="pl.138.17"></a><var>138.17</var>to read:<br/>
<a id="pl.138.18"></a><var>138.18</var>    Subd. 4d. <b>Annual base salary reporting.</b> An employing unit must provide the <br/>
<a id="pl.138.19"></a><var>138.19</var>following data to the association on or before June 30 of each fiscal year:<br/>
<a id="pl.138.20"></a><var>138.20</var>(1) annual base salary, as defined in section 354.05, subdivision 41; and<br/>
<a id="pl.138.21"></a><var>138.21</var>(2) beginning and ending dates for the regular school work year.<br/>
<a id="pl.138.22"></a><var>138.22</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2011.<br/>
<br/>
<a id="bill.7.6.0"></a><a id="pl.138.23"></a><var>138.23</var>    Sec. 6. Minnesota Statutes 2008, section 354.52, subdivision 6, is amended to read:<br/>
<a id="pl.138.24"></a><var>138.24</var>    Subd. 6. <b>Noncompliance consequences.</b> (a) An employing unit that does not <br/>
<a id="pl.138.25"></a><var>138.25</var>comply with the reporting requirements under subdivision 2a, 4a, or 4b, or 4d, must pay a <br/>
<a id="pl.138.26"></a><var>138.26</var>fine of $5 per calendar day until the association receives the required data.<br/>
<a id="pl.138.27"></a><var>138.27</var>(b) If the annual base salary required to be reported under subdivision 4d has not <br/>
<a id="pl.138.28"></a><var>138.28</var>been settled or determined as of June 16, the fine commences if the annual base salary has <br/>
<a id="pl.138.29"></a><var>138.29</var>not been reported to the association within 14 days following the settlement date.<br/>
<a id="pl.138.30"></a><var>138.30</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2011.<br/>
<br/>
<a id="bill.7.7.0"></a><a id="pl.138.31"></a><var>138.31</var>    Sec. 7. Minnesota Statutes 2008, section 354.66, subdivision 3, is amended to read:<br/>
<a id="pl.139.1"></a><var>139.1</var>    Subd. 3. <b>Part-time teaching position, defined.</b> (a) For purposes of this section, <br/>
<a id="pl.139.2"></a><var>139.2</var>the term "part-time teaching position" means a teaching position within the district in <br/>
<a id="pl.139.3"></a><var>139.3</var>which the teacher is employed for at least 50 full days or a fractional equivalent thereof as <br/>
<a id="pl.139.4"></a><var>139.4</var>prescribed in section 
<statute_ref>354.091</statute_ref>, and for which the teacher is compensated in for an amount <br/>
<a id="pl.139.5"></a><var>139.5</var>of at least 30 percent, but not exceeding 80 percent of the compensation established by the <br/>
<a id="pl.139.6"></a><var>139.6</var>board for a full-time teacher with identical education and experience with the employing <br/>
<a id="pl.139.7"></a><var>139.7</var>unit.  <br/>
<a id="pl.139.8"></a><var>139.8</var>(b) For a teacher to which subdivision 1c, paragraph (b), applies, the term "part-time <br/>
<a id="pl.139.9"></a><var>139.9</var>teaching position" means a teaching position within the district in which the teacher is <br/>
<a id="pl.139.10"></a><var>139.10</var>employed for at least 25 full days or a fractional equivalent thereof as prescribed in section <br/>
<a id="pl.139.11"></a><var>139.11</var><statute_ref>354.091</statute_ref>, and for which the teacher is compensated in for an amount of at least 15 percent, <br/>
<a id="pl.139.12"></a><var>139.12</var>but not exceeding 40 percent of the compensation established by the board for a full-time <br/>
<a id="pl.139.13"></a><var>139.13</var>teacher, with identical education and experience with the employing unit.  <br/>
<a id="pl.139.14"></a><var>139.14</var><b>EFFECTIVE DATE.</b>This section is effective for service provided after June 30, <br/>
<a id="pl.139.15"></a><var>139.15</var>2012.<br/>
<br/>
<a id="bill.8.0.0"></a>

<a id="bill.8.1.0"></a><a id="pl.139.18"></a><var>139.18</var>    Section 1. Minnesota Statutes 2008, section 11A.04, is amended to read:<br/>
<a id="pl.139.19"></a><var>139.19</var><b>11A.04 DUTIES AND POWERS.</b><br/>
<a id="pl.139.20"></a><var>139.20</var>The state board shall:<br/>
<a id="pl.139.21"></a><var>139.21</var>(1) Act as trustees for each fund for which it invests or manages money in <br/>
<a id="pl.139.22"></a><var>139.22</var>accordance with the standard of care set forth in section 
         <statute_ref>11A.09</statute_ref> if state assets are involved <br/>
<a id="pl.139.23"></a><var>139.23</var>and in accordance with chapter 356A if pension assets are involved.<br/>
<a id="pl.139.24"></a><var>139.24</var>(2) Formulate policies and procedures deemed necessary and appropriate to carry <br/>
<a id="pl.139.25"></a><var>139.25</var>out its functions. Procedures adopted by the board must allow fund beneficiaries and <br/>
<a id="pl.139.26"></a><var>139.26</var>members of the public to become informed of proposed board actions. Procedures and <br/>
<a id="pl.139.27"></a><var>139.27</var>policies of the board are not subject to the Administrative Procedure Act.<br/>
<a id="pl.139.28"></a><var>139.28</var>(3) Employ an executive director as provided in section 
         <statute_ref>11A.07</statute_ref>.<br/>
<a id="pl.139.29"></a><var>139.29</var>(4) Employ investment advisors and consultants as it deems necessary.<br/>
<a id="pl.139.30"></a><var>139.30</var>(5) Prescribe policies concerning personal investments of all employees of the board <br/>
<a id="pl.139.31"></a><var>139.31</var>to prevent conflicts of interest.<br/>
<a id="pl.139.32"></a><var>139.32</var>(6) Maintain a record of its proceedings.<br/>
<a id="pl.139.33"></a><var>139.33</var>(7) As it deems necessary, establish advisory committees subject to section 
         <statute_ref>15.059</statute_ref> to <br/>
<a id="pl.139.34"></a><var>139.34</var>assist the board in carrying out its duties.<br/>
<a id="pl.140.1"></a><var>140.1</var>(8) Not permit state funds to be used for the underwriting or direct purchase of <br/>
<a id="pl.140.2"></a><var>140.2</var>municipal securities from the issuer or the issuer's agent.<br/>
<a id="pl.140.3"></a><var>140.3</var>(9) Direct the commissioner of management and budget to sell property other than <br/>
<a id="pl.140.4"></a><var>140.4</var>money that has escheated to the state when the board determines that sale of the property <br/>
<a id="pl.140.5"></a><var>140.5</var>is in the best interest of the state. Escheated property must be sold to the highest bidder in <br/>
<a id="pl.140.6"></a><var>140.6</var>the manner and upon terms and conditions prescribed by the board.<br/>
<a id="pl.140.7"></a><var>140.7</var>(10) Undertake any other activities necessary to implement the duties and powers <br/>
<a id="pl.140.8"></a><var>140.8</var>set forth in this section.<br/>
<a id="pl.140.9"></a><var>140.9</var>(11) Establish a formula or formulas to measure management performance and <br/>
<a id="pl.140.10"></a><var>140.10</var>return on investment. Public pension funds in the state shall utilize the formula or <br/>
<a id="pl.140.11"></a><var>140.11</var>formulas developed by the state board.<br/>
<a id="pl.140.12"></a><var>140.12</var>(12) Except as otherwise provided in article XI, section 8, of the Constitution of the <br/>
<a id="pl.140.13"></a><var>140.13</var>state of Minnesota, employ, at its discretion, qualified private firms to invest and manage <br/>
<a id="pl.140.14"></a><var>140.14</var>the assets of funds over which the state board has investment management responsibility. <br/>
<a id="pl.140.15"></a><var>140.15</var>There is annually appropriated to the state board, from the assets of the funds for which <br/>
<a id="pl.140.16"></a><var>140.16</var>the state board utilizes a private investment manager, sums sufficient to pay the costs of <br/>
<a id="pl.140.17"></a><var>140.17</var>employing private firms. Each year, by January 15, the board shall report to the governor <br/>
<a id="pl.140.18"></a><var>140.18</var>and legislature on the cost and the investment performance of each investment manager <br/>
<a id="pl.140.19"></a><var>140.19</var>employed by the board.<br/>
<a id="pl.140.20"></a><var>140.20</var>(13) Adopt an investment policy statement that includes investment objectives, asset <br/>
<a id="pl.140.21"></a><var>140.21</var>allocation, and the investment management structure for the retirement fund assets under <br/>
<a id="pl.140.22"></a><var>140.22</var>its control. The statement may be revised at the discretion of the state board. The state <br/>
<a id="pl.140.23"></a><var>140.23</var>board shall seek the advice of the council regarding its investment policy statement. <br/>
<a id="pl.140.24"></a><var>140.24</var>Adoption of the statement is not subject to chapter 14.<br/>
<a id="pl.140.25"></a><var>140.25</var>(14) Adopt a compensation plan setting the terms and conditions of employment for <br/>
<a id="pl.140.26"></a><var>140.26</var>unclassified board employees who are not covered by a collective bargaining agreement.<br/>
<a id="pl.140.27"></a><var>140.27</var>(15) Contract, as necessary, with the board of trustees of the Minnesota State <br/>
<a id="pl.140.28"></a><var>140.28</var>Universities and Colleges System for the provision of investment review and selection <br/>
<a id="pl.140.29"></a><var>140.29</var>services under section 354B.25, subdivision 3, and arrange for the receipt of payment <br/>
<a id="pl.140.30"></a><var>140.30</var>for those services.<br/>
<a id="pl.140.31"></a><var>140.31</var>There is annually appropriated to the state board, from the assets of the funds for <br/>
<a id="pl.140.32"></a><var>140.32</var>which the state board provides investment services, sums sufficient to pay the costs of <br/>
<a id="pl.140.33"></a><var>140.33</var>all necessary expenses for the administration of the board. These sums will be deposited <br/>
<a id="pl.140.34"></a><var>140.34</var>in the State Board of Investment operating account, which must be established by the <br/>
<a id="pl.140.35"></a><var>140.35</var>commissioner of management and budget.<br/>
<br/>
<a id="bill.8.2.0"></a><a id="pl.141.1"></a><var>141.1</var>    Sec. 2. Minnesota Statutes 2008, section 354B.25, subdivision 1, is amended to read:<br/>
<a id="pl.141.2"></a><var>141.2</var>    Subdivision 1. <b>General governance.</b> The individual retirement account plan is the <br/>
<a id="pl.141.3"></a><var>141.3</var>administrative responsibility of the Board of Trustees of the Minnesota State Colleges <br/>
<a id="pl.141.4"></a><var>141.4</var>and Universities. The Board of Trustees of the Minnesota State Colleges and Universities <br/>
<a id="pl.141.5"></a><var>141.5</var>may administer the plan directly or may contract out for administrative services with a <br/>
<a id="pl.141.6"></a><var>141.6</var>qualified third-party plan administrative entity and may contract out for investment review <br/>
<a id="pl.141.7"></a><var>141.7</var>and selection service.<br/>
<a id="pl.141.8"></a><var>141.8</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.8.3.0"></a><a id="pl.141.9"></a><var>141.9</var>    Sec. 3. Minnesota Statutes 2008, section 354B.25, subdivision 3, is amended to read:<br/>
<a id="pl.141.10"></a><var>141.10</var>    Subd. 3. <b>Selection of financial institutions.</b> (a) The investment options provided <br/>
<a id="pl.141.11"></a><var>141.11</var>under subdivision 2 must be selected by the board. The board may contract with the State <br/>
<a id="pl.141.12"></a><var>141.12</var>Board of Investment or with a third party to provide the investment review and selection <br/>
<a id="pl.141.13"></a><var>141.13</var>services. The board must not contract with a third party to provide the investment option <br/>
<a id="pl.141.14"></a><var>141.14</var>review and selection services if the third party markets, offers, or has other material <br/>
<a id="pl.141.15"></a><var>141.15</var>interest in investment products. The board must require any third party contracted to <br/>
<a id="pl.141.16"></a><var>141.16</var>provide investment review and selection services to disclose to the board any contracts <br/>
<a id="pl.141.17"></a><var>141.17</var>for services and any financial relationships it has with vendors under consideration to <br/>
<a id="pl.141.18"></a><var>141.18</var>provide investment products under the plan.<br/>
<a id="pl.141.19"></a><var>141.19</var>In making its selection, at a minimum, the State board of Investment shall consider <br/>
<a id="pl.141.20"></a><var>141.20</var>the following:<br/>
<a id="pl.141.21"></a><var>141.21</var>(1) the experience and ability of the financial institution to provide benefits and <br/>
<a id="pl.141.22"></a><var>141.22</var>products that are suited to meet the needs of plan participants;<br/>
<a id="pl.141.23"></a><var>141.23</var>(2) the relationship of those benefits and products provided by the financial <br/>
<a id="pl.141.24"></a><var>141.24</var>institution to their cost;<br/>
<a id="pl.141.25"></a><var>141.25</var>(3) the financial strength and stability of the financial institution; and<br/>
<a id="pl.141.26"></a><var>141.26</var>(4) the fees and expenses associated with the investment products in comparison to <br/>
<a id="pl.141.27"></a><var>141.27</var>other products of similar risk and rates of return.<br/>
<a id="pl.141.28"></a><var>141.28</var>(b) After selecting a financial institution, the State board of Investment must <br/>
<a id="pl.141.29"></a><var>141.29</var>periodically review each financial institution and the offered products. The periodic <br/>
<a id="pl.141.30"></a><var>141.30</var>review must occur at least every three years. In making its review, the State board of <br/>
<a id="pl.141.31"></a><var>141.31</var>Investment may retain appropriate consulting services to assist it in its periodic review, <br/>
<a id="pl.141.32"></a><var>141.32</var>establish a budget for the cost of the periodic review process, and charge a proportional <br/>
<a id="pl.141.33"></a><var>141.33</var>share of these costs to the reviewed financial institution.<br/>
<a id="pl.141.34"></a><var>141.34</var>(c) Contracts with financial institutions under this section must be executed by the <br/>
<a id="pl.141.35"></a><var>141.35</var>board and must be approved by the State Board of Investment before execution.<br/>
<a id="pl.142.1"></a><var>142.1</var>(d) The State Board of Investment shall also establish policies and procedures under <br/>
<a id="pl.142.2"></a><var>142.2</var>section 
<statute_ref>11A.04</statute_ref>, clause (2), to carry out the provisions of this subdivision.  <br/>
<a id="pl.142.3"></a><var>142.3</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.8.4.0"></a><a id="pl.142.4"></a><var>142.4</var>    Sec. 4. Minnesota Statutes 2008, section 354C.14, is amended to read:<br/>
<a id="pl.142.5"></a><var>142.5</var><b>354C.14 INVESTMENT OF DEDUCTIONS AND CONTRIBUTIONS.</b><br/>
<a id="pl.142.6"></a><var>142.6</var>(a) The Board of Trustees of the Minnesota State Colleges and Universities shall <br/>
<a id="pl.142.7"></a><var>142.7</var>invest the deductions and contributions under section 
         <statute_ref>354C.12</statute_ref>, after deduction of <br/>
<a id="pl.142.8"></a><var>142.8</var>administrative expenses under section 
         <statute_ref>354C.12, subdivision 4</statute_ref>, in annuity contracts or <br/>
<a id="pl.142.9"></a><var>142.9</var>custodial accounts from financial institutions selected by the State Board of Investment <br/>
<a id="pl.142.10"></a><var>142.10</var>under section 
         <statute_ref>354B.25, subdivision 3</statute_ref>.  <br/>
<a id="pl.142.11"></a><var>142.11</var>(b) The retirement contributions and death benefits provided by annuity contracts or <br/>
<a id="pl.142.12"></a><var>142.12</var>custodial accounts purchased by the Board of Trustees of the Minnesota State Colleges <br/>
<a id="pl.142.13"></a><var>142.13</var>and Universities are owned by the supplemental retirement plan and must be paid in <br/>
<a id="pl.142.14"></a><var>142.14</var>accordance with those annuity contracts or custodial account agreements.<br/>
<a id="pl.142.15"></a><var>142.15</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.8.5.0"></a><a id="pl.142.16"></a><var>142.16</var>    Sec. 5. <b> REPEALER.</b><br/>
<a id="pl.142.17"></a><var>142.17</var>Minnesota Statutes 2008, section 354C.15, is repealed.<br/>
<a id="pl.142.18"></a><var>142.18</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.9.0.0"></a>

<a id="bill.9.1.0"></a><a id="pl.142.21"></a><var>142.21</var>    Section 1. Minnesota Statutes 2008, section 356.215, subdivision 3, is amended to read:<br/>
<a id="pl.142.22"></a><var>142.22</var>    Subd. 3. <b>Reports.</b> (a) The actuarial valuations required annually must be made as of <br/>
<a id="pl.142.23"></a><var>142.23</var>the beginning of each fiscal year.<br/>
<a id="pl.142.24"></a><var>142.24</var>    (b) Two copies of the completed valuation must be delivered to the executive <br/>
<a id="pl.142.25"></a><var>142.25</var>director of the Legislative Commission on Pensions and Retirement, to the commissioner <br/>
<a id="pl.142.26"></a><var>142.26</var>of management and budget, and to the Legislative Reference Library. The copies of the <br/>
<a id="pl.142.27"></a><var>142.27</var>actuarial valuation must be filed with the executive director of the Legislative Commission <br/>
<a id="pl.142.28"></a><var>142.28</var>on Pensions and Retirement, the commissioner of management and budget, and the <br/>
<a id="pl.142.29"></a><var>142.29</var>Legislative Reference Library no later than the last day of the sixth month occurring <br/>
<a id="pl.142.30"></a><var>142.30</var>after the end of the previous fiscal year.<br/>
<a id="pl.143.1"></a><var>143.1</var>    (c) Two copies of a quadrennial experience study must be filed with the <br/>
<a id="pl.143.2"></a><var>143.2</var>executive director of the Legislative Commission on Pensions and Retirement, with the <br/>
<a id="pl.143.3"></a><var>143.3</var>commissioner of management and budget, and with the Legislative Reference Library, not <br/>
<a id="pl.143.4"></a><var>143.4</var>later than the first last day of the 11th 12th month occurring after the end of the last fiscal <br/>
<a id="pl.143.5"></a><var>143.5</var>year of the four-year period which the experience study covers.<br/>
<a id="pl.143.6"></a><var>143.6</var>    (d) For actuarial valuations and experience studies prepared at the direction of <br/>
<a id="pl.143.7"></a><var>143.7</var>the Legislative Commission on Pensions and Retirement, two copies one copy of the <br/>
<a id="pl.143.8"></a><var>143.8</var>document must be delivered to the governing or managing board or administrative officials <br/>
<a id="pl.143.9"></a><var>143.9</var>of the applicable public pension and retirement fund or plan.<br/>
<a id="pl.143.10"></a><var>143.10</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2010.<br/>
<br/>
<a id="bill.10.0.0"></a>

<a id="bill.10.1.0"></a><a id="pl.143.13"></a><var>143.13</var>    Section 1. Minnesota Statutes 2008, section 356.351, subdivision 1, is amended to read:<br/>
<a id="pl.143.14"></a><var>143.14</var>    Subdivision 1. <b>Eligibility.</b> (a) An eligible appointing authority may offer the early <br/>
<a id="pl.143.15"></a><var>143.15</var>retirement incentive in this section to an employee who: <br/>
<a id="pl.143.16"></a><var>143.16</var>    (1) has at least 15 years of allowable service in one or more of the funds listed <br/>
<a id="pl.143.17"></a><var>143.17</var>in section 
<statute_ref>356.30, subdivision 3</statute_ref>, or has at least 15 years of coverage by the individual <br/>
<a id="pl.143.18"></a><var>143.18</var>retirement account plan governed by chapter 354B employment as indicated in the <br/>
<a id="pl.143.19"></a><var>143.19</var>personnel records of the applicable employing unit and upon retirement is immediately <br/>
<a id="pl.143.20"></a><var>143.20</var>eligible for a retirement annuity or benefit from one or more of these funds retirement plan <br/>
<a id="pl.143.21"></a><var>143.21</var>governed by chapter 354B, or section 356.30; <br/>
<a id="pl.143.22"></a><var>143.22</var>    (2) terminates service after the effective date of this section, and before July 15, <br/>
<a id="pl.143.23"></a><var>143.23</var>2009 October 1, 2012; and<br/>
<a id="pl.143.24"></a><var>143.24</var>    (3) is not in receipt of a public retirement plan retirement annuity, retirement <br/>
<a id="pl.143.25"></a><var>143.25</var>allowance, or service pension during the month preceding the termination of qualified <br/>
<a id="pl.143.26"></a><var>143.26</var>employment.; and <br/>
<a id="pl.143.27"></a><var>143.27</var>(4) has not been eligible to receive a retirement annuity for a period longer than <br/>
<a id="pl.143.28"></a><var>143.28</var>ten years.<br/>
<a id="pl.143.29"></a><var>143.29</var>    (b) An eligible appointing authority is any Minnesota governmental employing unit <br/>
<a id="pl.143.30"></a><var>143.30</var>which employs one or more employees with retirement coverage by a retirement plan <br/>
<a id="pl.143.31"></a><var>143.31</var>listed in section 
         <statute_ref>356.30</statute_ref> by virtue of that employment.<br/>
<a id="pl.143.32"></a><var>143.32</var>    (c) An elected official is not eligible to receive an incentive under this section.<br/>
<a id="pl.144.1"></a><var>144.1</var>(d) Employees of the Minnesota State Colleges and Universities System who <br/>
<a id="pl.144.2"></a><var>144.2</var>participate in the incentive program under section 136F.481 are not eligible for the <br/>
<a id="pl.144.3"></a><var>144.3</var>incentive under this section.<br/>
<a id="pl.144.4"></a><var>144.4</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.10.2.0"></a><a id="pl.144.5"></a><var>144.5</var>    Sec. 2. Minnesota Statutes 2009 Supplement, section 356.351, subdivision 2, is <br/>
<a id="pl.144.6"></a><var>144.6</var>amended to read:<br/>
<a id="pl.144.7"></a><var>144.7</var>    Subd. 2. <b>Incentive.</b> (a) For an employee who is eligible under subdivision 1, if for <br/>
<a id="pl.144.8"></a><var>144.8</var>whom an early retirement incentive is approved under paragraph (b), and who terminates <br/>
<a id="pl.144.9"></a><var>144.9</var>employment as provided for in the agreement, the employer may provide an amount up to <br/>
<a id="pl.144.10"></a><var>144.10</var>$17,000, to an employee who terminates service, to:<br/>
<a id="pl.144.11"></a><var>144.11</var>(1) a severance amount in lieu of and not to exceed the maximum amount of regular <br/>
<a id="pl.144.12"></a><var>144.12</var>state-provided unemployment compensation for that particular person if the person had <br/>
<a id="pl.144.13"></a><var>144.13</var>been laid off; and<br/>
<a id="pl.144.14"></a><var>144.14</var>(2) an additional severance amount not to exceed the amount of the employer's <br/>
<a id="pl.144.15"></a><var>144.15</var>contribution for health insurance, dental insurance, and basic life insurance that would <br/>
<a id="pl.144.16"></a><var>144.16</var>have been payable to the particular person under the applicable collective bargaining <br/>
<a id="pl.144.17"></a><var>144.17</var>agreement or personnel policy at the time of termination.<br/>
<a id="pl.144.18"></a><var>144.18</var>(b) The severance amounts under paragraph (a) must be used: <br/>
<a id="pl.144.19"></a><var>144.19</var>    (1) unless the appointing authority has designated the use under clause (2) or the use <br/>
<a id="pl.144.20"></a><var>144.20</var>under clause (3) for the initial retirement incentive applicable to that employing entity <br/>
<a id="pl.144.21"></a><var>144.21</var>under Laws 2007, chapter 134, after May 26, 2007, for deposit in the employee's account <br/>
<a id="pl.144.22"></a><var>144.22</var>in the health care savings plan established by section 
         <statute_ref>352.98</statute_ref>; <br/>
<a id="pl.144.23"></a><var>144.23</var>    (2) notwithstanding section 
         <statute_ref>352.01, subdivision 11</statute_ref>, or 
         <statute_ref>354.05, subdivision 13</statute_ref>, <br/>
<a id="pl.144.24"></a><var>144.24</var>whichever applies, if the appointing authority has designated the use under this clause <br/>
<a id="pl.144.25"></a><var>144.25</var>for the initial retirement incentive applicable to that employing entity under Laws 2007, <br/>
<a id="pl.144.26"></a><var>144.26</var>chapter 134, after May 26, 2007, for purchase of service credit for unperformed service <br/>
<a id="pl.144.27"></a><var>144.27</var>sufficient to enable the employee to retire under section 
         <statute_ref>352.116, subdivision 1</statute_ref>, paragraph <br/>
<a id="pl.144.28"></a><var>144.28</var>(b); 
         <statute_ref>353.30</statute_ref>; 
         <statute_ref>354.44, subdivision 6</statute_ref>, paragraph (b), or 
         <statute_ref>354A.31, subdivision 6</statute_ref>, paragraph <br/>
<a id="pl.144.29"></a><var>144.29</var>(b), whichever applies; or <br/>
<a id="pl.144.30"></a><var>144.30</var>    (3) if the appointing authority has designated the use under this clause for the initial <br/>
<a id="pl.144.31"></a><var>144.31</var>retirement incentive applicable to the employing entity under Laws 2007, chapter 134, <br/>
<a id="pl.144.32"></a><var>144.32</var>after May 26, 2007, for purchase of a lifetime annuity or an annuity for a specific number <br/>
<a id="pl.144.33"></a><var>144.33</var>of years from the applicable retirement plan to provide additional benefits, as provided in <br/>
<a id="pl.144.34"></a><var>144.34</var>paragraph (d). <br/>
<a id="pl.145.1"></a><var>145.1</var>    (b) (c) Approval to provide the incentive must be obtained from the commissioner <br/>
<a id="pl.145.2"></a><var>145.2</var>of finance if the eligible employee is a state employee and must be obtained from the <br/>
<a id="pl.145.3"></a><var>145.3</var>applicable governing board with respect to any other employing entity. An employee is <br/>
<a id="pl.145.4"></a><var>145.4</var>eligible for the payment under paragraph (a) (b), clause (2), if the employee uses money <br/>
<a id="pl.145.5"></a><var>145.5</var>from a deferred compensation account that, combined with the payment under paragraph <br/>
<a id="pl.145.6"></a><var>145.6</var>(a) (b), clause (2), would be sufficient to purchase enough service credit to qualify for <br/>
<a id="pl.145.7"></a><var>145.7</var>retirement under section 
         <statute_ref>352.116, subdivision 1</statute_ref>, paragraph (b); 
         <statute_ref>353.30, subdivision 1a</statute_ref>; <br/>
<statute_ref><a id="pl.145.8"></a><var>145.8</var>354.44, subdivision 6
         </statute_ref>, paragraph (b), or 
         <statute_ref>354A.31, subdivision 6</statute_ref>, paragraph (b), whichever <br/>
<a id="pl.145.9"></a><var>145.9</var>applies. <br/>
<a id="pl.145.10"></a><var>145.10</var>    (c) (d) The cost to purchase service credit under paragraph (a) (b), clause (2), must <br/>
<a id="pl.145.11"></a><var>145.11</var>be made in accordance with section 
         <statute_ref>356.551</statute_ref>.<br/>
<a id="pl.145.12"></a><var>145.12</var>    (d) The (e) An annuity purchase under paragraph (a) (b), clause (3), must be made <br/>
<a id="pl.145.13"></a><var>145.13</var>using annuity factors, as determined by the actuary retained under section 
         <statute_ref>356.214</statute_ref>, <br/>
<a id="pl.145.14"></a><var>145.14</var>derived from the applicable factors used by the applicable retirement plan to calculate <br/>
<a id="pl.145.15"></a><var>145.15</var>optional annuity forms. The purchased annuity must be the actuarial equivalent of the <br/>
<a id="pl.145.16"></a><var>145.16</var>incentive amount.<br/>
<a id="pl.145.17"></a><var>145.17</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.11.0.0"></a>

<a id="pl.145.20"></a><var>145.20</var><b>MARRIAGE DISSOLUTIONS</b><br/>

<a id="bill.11.1.0"></a><a id="pl.145.21"></a><var>145.21</var>    Section 1. <b>[356.48] REVOCATION OF OPTIONAL ANNUITY DUE TO </b><br/>
<a id="pl.145.22"></a><var>145.22</var><b>MARRIAGE DISSOLUTION OR ANNULMENT.</b><br/>
<a id="pl.145.23"></a><var>145.23</var>    Subdivision 1. <b>Covered plans.</b> This section applies to the following retirement <br/>
<a id="pl.145.24"></a><var>145.24</var>plans:<br/>
<a id="pl.145.25"></a><var>145.25</var>(1) the general state employees retirement plan of the Minnesota State Retirement <br/>
<a id="pl.145.26"></a><var>145.26</var>System established under chapter 352;<br/>
<a id="pl.145.27"></a><var>145.27</var>(2) the correctional state employees retirement plan of the Minnesota State <br/>
<a id="pl.145.28"></a><var>145.28</var>Retirement System established under chapter 352;<br/>
<a id="pl.145.29"></a><var>145.29</var>(3) the State Patrol retirement plan established under chapter 352B;<br/>
<a id="pl.145.30"></a><var>145.30</var>(4) the unclassified state employees retirement program of the Minnesota State <br/>
<a id="pl.145.31"></a><var>145.31</var>Retirement System established under chapter 352D;<br/>
<a id="pl.145.32"></a><var>145.32</var>(5) the general employee retirement plan of the Public Employees Retirement <br/>
<a id="pl.145.33"></a><var>145.33</var>Association established under chapter 353;<br/>
<a id="pl.146.1"></a><var>146.1</var>(6) the public employees police and fire retirement plan established under chapter <br/>
<a id="pl.146.2"></a><var>146.2</var>353;<br/>
<a id="pl.146.3"></a><var>146.3</var>(7) the local government correctional employees retirement plan of the Public <br/>
<a id="pl.146.4"></a><var>146.4</var>Employees Retirement Association established under chapter 353E; <br/>
<a id="pl.146.5"></a><var>146.5</var>(8) the Teachers Retirement Association established under chapter 354; and<br/>
<a id="pl.146.6"></a><var>146.6</var>(9) the uniform judicial retirement plan established under chapter 490.<br/>
<a id="pl.146.7"></a><var>146.7</var>    Subd. 2. <b>Treatment.</b> (a) The treatment specified in this section applies if, after <br/>
<a id="pl.146.8"></a><var>146.8</var>the accrual date of an annuity or benefit from an applicable plan or plans, a marriage <br/>
<a id="pl.146.9"></a><var>146.9</var>dissolution decree or annulment decree is rendered that specifies that the designation <br/>
<a id="pl.146.10"></a><var>146.10</var>of an optional annuity must be revoked and if the other requirements specified in this <br/>
<a id="pl.146.11"></a><var>146.11</var>section are satisfied.<br/>
<a id="pl.146.12"></a><var>146.12</var>(b) Notwithstanding any law to the contrary, if the applicable pension plan or plans <br/>
<a id="pl.146.13"></a><var>146.13</var>have provisions of law that revise the monthly benefit amount payable to the primary <br/>
<a id="pl.146.14"></a><var>146.14</var>annuitant upon the death of the individual named as the optional joint annuitant, the <br/>
<a id="pl.146.15"></a><var>146.15</var>monthly benefit amount must be recomputed as though the individual that had been named <br/>
<a id="pl.146.16"></a><var>146.16</var>as the optional joint annuitant died on the date a certified copy of the marriage dissolution <br/>
<a id="pl.146.17"></a><var>146.17</var>or annulment decree is received by the chief administrative officer. Payment of any benefit <br/>
<a id="pl.146.18"></a><var>146.18</var>adjustment under this section is prospective only.<br/>
<a id="pl.146.19"></a><var>146.19</var>    Subd. 3. <b>Restrictions.</b> (a) This section does not apply if the marriage dissolution <br/>
<a id="pl.146.20"></a><var>146.20</var>decree or annulment decree is not consistent with the requirements under section 518.58.<br/>
<a id="pl.146.21"></a><var>146.21</var>(b) The pension plan benefit recipient must not designate, and the court may not <br/>
<a id="pl.146.22"></a><var>146.22</var>require that the member designate, a subsequent optional annuity beneficiary.<br/>
<a id="pl.146.23"></a><var>146.23</var>(c) This section does not apply if more than one surviving individual was named as <br/>
<a id="pl.146.24"></a><var>146.24</var>an optional joint annuitant.<br/>
<a id="pl.146.25"></a><var>146.25</var>    Subd. 4. <b>Submission of documentation.</b> To receive the treatment provided in <br/>
<a id="pl.146.26"></a><var>146.26</var>this section, an eligible retiree or disabilitant must provide, to the chief administrative <br/>
<a id="pl.146.27"></a><var>146.27</var>officer of the applicable pension plan, a certified copy of the marriage dissolution or <br/>
<a id="pl.146.28"></a><var>146.28</var>annulment decree. The retiree or disabilitant and the joint annuitant must also submit a <br/>
<a id="pl.146.29"></a><var>146.29</var>form, prescribed by the chief administrative officer of the applicable pension plan and <br/>
<a id="pl.146.30"></a><var>146.30</var>signed by both individuals, requesting the annuity bounce back as provided in subdivision <br/>
<a id="pl.146.31"></a><var>146.31</var>2. The individuals must also provide any other documentation the chief administrative <br/>
<a id="pl.146.32"></a><var>146.32</var>officer may request.<br/>
<a id="pl.146.33"></a><var>146.33</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment and <br/>
<a id="pl.146.34"></a><var>146.34</var>applies retroactively to any marriage dissolution decree or annulment decree requiring the <br/>
<a id="pl.146.35"></a><var>146.35</var>revocation of an optional annuity form granted at any time prior to the date of enactment.<br/>
<br/>
<a id="bill.11.2.0"></a><a id="pl.147.1"></a><var>147.1</var>    Sec. 2. Minnesota Statutes 2008, section 518.58, subdivision 3, is amended to read:<br/>
<a id="pl.147.2"></a><var>147.2</var>    Subd. 3. <b>Sale or distribution while proceeding pending.</b> (a) If the court finds <br/>
<a id="pl.147.3"></a><var>147.3</var>that it is necessary to preserve the marital assets of the parties, the court may order the <br/>
<a id="pl.147.4"></a><var>147.4</var>sale of the homestead of the parties or the sale of other marital assets, as the individual <br/>
<a id="pl.147.5"></a><var>147.5</var>circumstances may require, during the pendency of a proceeding for a dissolution of <br/>
<a id="pl.147.6"></a><var>147.6</var>marriage or an annulment. If the court orders a sale, it may further provide for the <br/>
<a id="pl.147.7"></a><var>147.7</var>disposition of the funds received from the sale during the pendency of the proceeding. <br/>
<a id="pl.147.8"></a><var>147.8</var>If liquid or readily liquidated marital property other than property representing vested <br/>
<a id="pl.147.9"></a><var>147.9</var>pension benefits or rights is available, the court, so far as possible, shall divide the property <br/>
<a id="pl.147.10"></a><var>147.10</var>representing vested pension benefits or rights by the disposition of an equivalent amount <br/>
<a id="pl.147.11"></a><var>147.11</var>of the liquid or readily liquidated property.<br/>
<a id="pl.147.12"></a><var>147.12</var>(b) The court may order a partial distribution of marital assets during the pendency <br/>
<a id="pl.147.13"></a><var>147.13</var>of a proceeding for a dissolution of marriage or an annulment for good cause shown or <br/>
<a id="pl.147.14"></a><var>147.14</var>upon the request of both parties, provided that the court shall fully protect the interests <br/>
<a id="pl.147.15"></a><var>147.15</var>of the other party.<br/>
<a id="pl.147.16"></a><var>147.16</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.11.3.0"></a><a id="pl.147.17"></a><var>147.17</var>    Sec. 3. Minnesota Statutes 2008, section 518.58, subdivision 4, is amended to read:<br/>
<a id="pl.147.18"></a><var>147.18</var>    Subd. 4. <b>Pension plans.</b>  (a) The division of marital property that represents pension <br/>
<a id="pl.147.19"></a><var>147.19</var>plan benefits or rights in the form of future pension plan payments:<br/>
<a id="pl.147.20"></a><var>147.20</var>    (1) is payable only to the extent of the amount of the pension plan benefit payable <br/>
<a id="pl.147.21"></a><var>147.21</var>under the terms of the plan;<br/>
<a id="pl.147.22"></a><var>147.22</var>    (2) is not payable for a period that exceeds the time that pension plan benefits are <br/>
<a id="pl.147.23"></a><var>147.23</var>payable to the pension plan benefit recipient;<br/>
<a id="pl.147.24"></a><var>147.24</var>    (3) is not payable in a lump-sum amount from defined benefit pension plan assets <br/>
<a id="pl.147.25"></a><var>147.25</var>attributable in any fashion to a spouse with the status of an active member, deferred <br/>
<a id="pl.147.26"></a><var>147.26</var>retiree, or benefit recipient of a pension plan;<br/>
<a id="pl.147.27"></a><var>147.27</var>    (4) if the former spouse to whom the payments are to be made dies prior to the end <br/>
<a id="pl.147.28"></a><var>147.28</var>of the specified payment period with the right to any remaining payments accruing to an <br/>
<a id="pl.147.29"></a><var>147.29</var>estate or to more than one survivor, is payable only to a trustee on behalf of the estate or <br/>
<a id="pl.147.30"></a><var>147.30</var>the group of survivors for subsequent apportionment by the trustee; and<br/>
<a id="pl.147.31"></a><var>147.31</var>    (5) in the case of defined benefit public pension plan benefits or rights, may not <br/>
<a id="pl.147.32"></a><var>147.32</var>commence until the public plan member submits a valid application for a public pension <br/>
<a id="pl.147.33"></a><var>147.33</var>plan benefit and the benefit becomes payable.<br/>
<a id="pl.147.34"></a><var>147.34</var>    (b) The individual retirement account plans established under chapter 354B may <br/>
<a id="pl.147.35"></a><var>147.35</var>provide in its plan document, if published and made generally available, for an alternative <br/>
<a id="pl.148.1"></a><var>148.1</var>marital property division or distribution of individual retirement account plan assets. If an <br/>
<a id="pl.148.2"></a><var>148.2</var>alternative division or distribution procedure is provided, it applies in place of paragraph <br/>
<a id="pl.148.3"></a><var>148.3</var>(a), clause (5).<br/>
<a id="pl.148.4"></a><var>148.4</var>(c) If liquid or readily liquidated marital property other than property representing <br/>
<a id="pl.148.5"></a><var>148.5</var>vested pension benefits or rights is available, the court, so far as possible, shall divide the <br/>
<a id="pl.148.6"></a><var>148.6</var>property representing vested pension benefits or rights by the disposition of an equivalent <br/>
<a id="pl.148.7"></a><var>148.7</var>amount of the liquid or readily liquidated property.<br/>
<a id="pl.148.8"></a><var>148.8</var>(d) If sufficient liquid or readily liquidated marital property other than property <br/>
<a id="pl.148.9"></a><var>148.9</var>representing vested pension benefits or rights is not available, the court may order the <br/>
<a id="pl.148.10"></a><var>148.10</var>revocation of the designation of an optional annuity beneficiary in pension plans specified <br/>
<a id="pl.148.11"></a><var>148.11</var>in section 356.48 or in any other pension plan in which plan-governing law or governing <br/>
<a id="pl.148.12"></a><var>148.12</var>documents allow revocation of an optional annuity in marital dissolution or annulment <br/>
<a id="pl.148.13"></a><var>148.13</var>situations.<br/>
<a id="pl.148.14"></a><var>148.14</var><b>EFFECTIVE DATE.</b>(a) This section is effective the day following final enactment. <br/>
<a id="pl.148.15"></a><var>148.15</var>(b) This section applies retroactively, for plans specified in section 365.48, to any <br/>
<a id="pl.148.16"></a><var>148.16</var>marriage dissolution decree or annulment decree requiring the revocation of an optional <br/>
<a id="pl.148.17"></a><var>148.17</var>annuity form granted at any time prior to the date of enactment.<br/>
<br/>
<a id="bill.12.0.0"></a>

<a id="pl.148.20"></a><var>148.20</var><b>EMPLOYEES RETIREMENT FUND INTO THE PUBLIC EMPLOYEES </b><br/>
<a id="pl.148.21"></a><var>148.21</var><b>RETIREMENT ASSOCIATION</b><br/>

<a id="bill.12.1.0"></a><a id="pl.148.22"></a><var>148.22</var>    Section 1. Minnesota Statutes 2009 Supplement, section 353.01, subdivision 2a, <br/>
<a id="pl.148.23"></a><var>148.23</var>is amended to read:<br/>
<a id="pl.148.24"></a><var>148.24</var>    Subd. 2a. <b>Included employees.</b> (a) Public employees whose salary from <br/>
<a id="pl.148.25"></a><var>148.25</var>employment in one or more positions within one governmental subdivision exceeds $425 <br/>
<a id="pl.148.26"></a><var>148.26</var>in any month shall participate as members of the association. If the salary is less than <br/>
<a id="pl.148.27"></a><var>148.27</var>$425 in a subsequent month, the employee retains membership eligibility. Eligible public <br/>
<a id="pl.148.28"></a><var>148.28</var>employees shall participate as members of the association with retirement coverage by <br/>
<a id="pl.148.29"></a><var>148.29</var>the public general employees retirement plan or under this chapter, the public employees <br/>
<a id="pl.148.30"></a><var>148.30</var>police and fire retirement plan under this chapter, or the local government correctional <br/>
<a id="pl.148.31"></a><var>148.31</var>employees retirement plan under chapter 353E, whichever applies, as a condition of their <br/>
<a id="pl.148.32"></a><var>148.32</var>employment on the first day of employment unless they:<br/>
<a id="pl.148.33"></a><var>148.33</var>    (1) are specifically excluded under subdivision 2b;<br/>
<a id="pl.148.34"></a><var>148.34</var>    (2) do not exercise their option to elect retirement coverage in the association as <br/>
<a id="pl.148.35"></a><var>148.35</var>provided in subdivision 2d, paragraph (a); or<br/>
<a id="pl.149.1"></a><var>149.1</var>    (3) are employees of the governmental subdivisions listed in subdivision 2d, <br/>
<a id="pl.149.2"></a><var>149.2</var>paragraph (b), where the governmental subdivision has not elected to participate as a <br/>
<a id="pl.149.3"></a><var>149.3</var>governmental subdivision covered by the association.<br/>
<a id="pl.149.4"></a><var>149.4</var>    (b) A public employee who was a member of the association on June 30, 2002, <br/>
<a id="pl.149.5"></a><var>149.5</var>based on employment that qualified for membership coverage by the public employees <br/>
<a id="pl.149.6"></a><var>149.6</var>retirement plan or the public employees police and fire plan under this chapter, or the <br/>
<a id="pl.149.7"></a><var>149.7</var>local government correctional employees retirement plan under chapter 353E as of June <br/>
<a id="pl.149.8"></a><var>149.8</var>30, 2002, retains that membership for the duration of the person's employment in that <br/>
<a id="pl.149.9"></a><var>149.9</var>position or incumbency in elected office. Except as provided in subdivision 28, the person <br/>
<a id="pl.149.10"></a><var>149.10</var>shall participate as a member until the employee or elected official terminates public <br/>
<a id="pl.149.11"></a><var>149.11</var>employment under subdivision 11a or terminates membership under subdivision 11b.<br/>
<a id="pl.149.12"></a><var>149.12</var>    (c) Public employees under paragraph (a) include:<br/>
<a id="pl.149.13"></a><var>149.13</var>(1) physicians under section 
         <statute_ref>353D.01</statute_ref>, subdivision 2, who do not elect public <br/>
<a id="pl.149.14"></a><var>149.14</var>employees defined contribution plan coverage under section 
         <statute_ref>353D.02</statute_ref>, subdivision 2;<br/>
<a id="pl.149.15"></a><var>149.15</var>(2) full-time employees of the Dakota County Agricultural Society; and<br/>
<a id="pl.149.16"></a><var>149.16</var>(3) employees of the Minneapolis Firefighters Relief Association or Minneapolis <br/>
<a id="pl.149.17"></a><var>149.17</var>Police Relief Association who are not excluded employees under subdivision 2b due to <br/>
<a id="pl.149.18"></a><var>149.18</var>coverage by the relief association pension plan and who elect Public Employee Retirement <br/>
<a id="pl.149.19"></a><var>149.19</var>Association general plan coverage under Laws 2009, chapter 169, article 12, section 10.<br/>
<a id="pl.149.20"></a><var>149.20</var>(d) For the purpose of participation in the MERF division of the general employees <br/>
<a id="pl.149.21"></a><var>149.21</var>retirement plan, public employees include employees who were members of the former <br/>
<a id="pl.149.22"></a><var>149.22</var>Minneapolis Employees Retirement Fund on June 29, 2010, and who participate as <br/>
<a id="pl.149.23"></a><var>149.23</var>members of the MERF division of the association.<br/>
<br/>
<a id="bill.12.2.0"></a><a id="pl.149.24"></a><var>149.24</var>    Sec. 2. Minnesota Statutes 2008, section 353.01, subdivision 2b, is amended to read:<br/>
<a id="pl.149.25"></a><var>149.25</var>    Subd. 2b. <b>Excluded employees.</b> The following public employees are not eligible to <br/>
<a id="pl.149.26"></a><var>149.26</var>participate as members of the association with retirement coverage by the public general <br/>
<a id="pl.149.27"></a><var>149.27</var>employees retirement plan, the local government correctional employees retirement plan <br/>
<a id="pl.149.28"></a><var>149.28</var>under chapter 353E, or the public employees police and fire retirement plan:<br/>
<a id="pl.149.29"></a><var>149.29</var>    (1) public officers, other than county sheriffs, who are elected to a governing body, <br/>
<a id="pl.149.30"></a><var>149.30</var>or persons who are appointed to fill a vacancy in an elective office of a governing body, <br/>
<a id="pl.149.31"></a><var>149.31</var>whose term of office commences on or after July 1, 2002, for the service to be rendered <br/>
<a id="pl.149.32"></a><var>149.32</var>in that elective position;<br/>
<a id="pl.149.33"></a><var>149.33</var>    (2) election officers or election judges;<br/>
<a id="pl.149.34"></a><var>149.34</var>    (3) patient and inmate personnel who perform services for a governmental <br/>
<a id="pl.149.35"></a><var>149.35</var>subdivision;<br/>
<a id="pl.150.1"></a><var>150.1</var>    (4) except as otherwise specified in subdivision 12a, employees who are hired for <br/>
<a id="pl.150.2"></a><var>150.2</var>a temporary position as defined under subdivision 12a, and employees who resign from <br/>
<a id="pl.150.3"></a><var>150.3</var>a nontemporary position and accept a temporary position within 30 days in the same <br/>
<a id="pl.150.4"></a><var>150.4</var>governmental subdivision;<br/>
<a id="pl.150.5"></a><var>150.5</var>    (5) employees who are employed by reason of work emergency caused by fire, <br/>
<a id="pl.150.6"></a><var>150.6</var>flood, storm, or similar disaster;<br/>
<a id="pl.150.7"></a><var>150.7</var>    (6) employees who by virtue of their employment in one governmental subdivision <br/>
<a id="pl.150.8"></a><var>150.8</var>are required by law to be a member of and to contribute to any of the plans or funds <br/>
<a id="pl.150.9"></a><var>150.9</var>administered by the Minnesota State Retirement System, the Teachers Retirement <br/>
<a id="pl.150.10"></a><var>150.10</var>Association, the Duluth Teachers Retirement Fund Association, the St. Paul Teachers <br/>
<a id="pl.150.11"></a><var>150.11</var>Retirement Fund Association, the Minneapolis Employees Retirement Fund, or any police <br/>
<a id="pl.150.12"></a><var>150.12</var>or firefighters relief association governed by section 
         <statute_ref>69.77</statute_ref> that has not consolidated <br/>
<a id="pl.150.13"></a><var>150.13</var>with the Public Employees Retirement Association, or any local police or firefighters <br/>
<a id="pl.150.14"></a><var>150.14</var>consolidation account who have not elected the type of benefit coverage provided by the <br/>
<a id="pl.150.15"></a><var>150.15</var>public employees police and fire fund under sections 
         <statute_ref>353A.01</statute_ref> to 
         <statute_ref>353A.10</statute_ref>, or any persons <br/>
<a id="pl.150.16"></a><var>150.16</var>covered by section 
         <statute_ref>353.665, subdivision 4</statute_ref>, 5, or 6, who have not elected public employees <br/>
<a id="pl.150.17"></a><var>150.17</var>police and fire plan benefit coverage. This clause must not be construed to prevent a person <br/>
<a id="pl.150.18"></a><var>150.18</var>from being a member of and contributing to the Public Employees Retirement Association <br/>
<a id="pl.150.19"></a><var>150.19</var>and also belonging to and contributing to another public pension plan or fund for other <br/>
<a id="pl.150.20"></a><var>150.20</var>service occurring during the same period of time. A person who meets the definition of <br/>
<a id="pl.150.21"></a><var>150.21</var>"public employee" in subdivision 2 by virtue of other service occurring during the same <br/>
<a id="pl.150.22"></a><var>150.22</var>period of time becomes a member of the association unless contributions are made to <br/>
<a id="pl.150.23"></a><var>150.23</var>another public retirement fund on the salary based on the other service or to the Teachers <br/>
<a id="pl.150.24"></a><var>150.24</var>Retirement Association by a teacher as defined in section 
         <statute_ref>354.05, subdivision 2</statute_ref>;<br/>
<a id="pl.150.25"></a><var>150.25</var>    (7) persons who are members of a religious order and are excluded from coverage <br/>
<a id="pl.150.26"></a><var>150.26</var>under the federal Old Age, Survivors, Disability, and Health Insurance Program for the <br/>
<a id="pl.150.27"></a><var>150.27</var>performance of service as specified in United States Code, title 42, section 410(a)(8)(A), <br/>
<a id="pl.150.28"></a><var>150.28</var>as amended through January 1, 1987, if no irrevocable election of coverage has been made <br/>
<a id="pl.150.29"></a><var>150.29</var>under section 3121(r) of the Internal Revenue Code of 1954, as amended;<br/>
<a id="pl.150.30"></a><var>150.30</var>    (8) employees of a governmental subdivision who have not reached the age of <br/>
<a id="pl.150.31"></a><var>150.31</var>23 and are enrolled on a full-time basis to attend or are attending classes on a full-time <br/>
<a id="pl.150.32"></a><var>150.32</var>basis at an accredited school, college, or university in an undergraduate, graduate, or <br/>
<a id="pl.150.33"></a><var>150.33</var>professional-technical program, or a public or charter high school;<br/>
<a id="pl.150.34"></a><var>150.34</var>    (9) resident physicians, medical interns, and pharmacist residents and pharmacist <br/>
<a id="pl.150.35"></a><var>150.35</var>interns who are serving in a degree or residency program in public hospitals or clinics;<br/>
<a id="pl.151.1"></a><var>151.1</var>    (10) students who are serving in an internship or residency program sponsored <br/>
<a id="pl.151.2"></a><var>151.2</var>by an accredited educational institution;<br/>
<a id="pl.151.3"></a><var>151.3</var>    (11) persons who hold a part-time adult supplementary technical college license who <br/>
<a id="pl.151.4"></a><var>151.4</var>render part-time teaching service in a technical college;<br/>
<a id="pl.151.5"></a><var>151.5</var>    (12) except for employees of Hennepin County or Hennepin Healthcare System, <br/>
<a id="pl.151.6"></a><var>151.6</var>Inc., foreign citizens working for a governmental subdivision with a work permit of less <br/>
<a id="pl.151.7"></a><var>151.7</var>than three years, or an H-1b visa valid for less than three years of employment. Upon <br/>
<a id="pl.151.8"></a><var>151.8</var>notice to the association that the work permit or visa extends beyond the three-year period, <br/>
<a id="pl.151.9"></a><var>151.9</var>the foreign citizens must be reported for membership from the date of the extension;<br/>
<a id="pl.151.10"></a><var>151.10</var>    (13) public hospital employees who elected not to participate as members of the <br/>
<a id="pl.151.11"></a><var>151.11</var>association before 1972 and who did not elect to participate from July 1, 1988, to October <br/>
<a id="pl.151.12"></a><var>151.12</var>1, 1988;<br/>
<a id="pl.151.13"></a><var>151.13</var>    (14) except as provided in section 
         <statute_ref>353.86</statute_ref>, volunteer ambulance service personnel, <br/>
<a id="pl.151.14"></a><var>151.14</var>as defined in subdivision 35, but persons who serve as volunteer ambulance service <br/>
<a id="pl.151.15"></a><var>151.15</var>personnel may still qualify as public employees under subdivision 2 and may be members <br/>
<a id="pl.151.16"></a><var>151.16</var>of the Public Employees Retirement Association and participants in the public general <br/>
<a id="pl.151.17"></a><var>151.17</var>employees retirement fund or the public employees police and fire fund, whichever <br/>
<a id="pl.151.18"></a><var>151.18</var>applies, on the basis of compensation received from public employment service other than <br/>
<a id="pl.151.19"></a><var>151.19</var>service as volunteer ambulance service personnel;<br/>
<a id="pl.151.20"></a><var>151.20</var>    (15) except as provided in section 
         <statute_ref>353.87</statute_ref>, volunteer firefighters, as defined in <br/>
<a id="pl.151.21"></a><var>151.21</var>subdivision 36, engaging in activities undertaken as part of volunteer firefighter duties; <br/>
<a id="pl.151.22"></a><var>151.22</var>provided that a person who is a volunteer firefighter may still qualify as a public <br/>
<a id="pl.151.23"></a><var>151.23</var>employee under subdivision 2 and may be a member of the Public Employees Retirement <br/>
<a id="pl.151.24"></a><var>151.24</var>Association and a participant in the public general employees retirement fund or the public <br/>
<a id="pl.151.25"></a><var>151.25</var>employees police and fire fund, whichever applies, on the basis of compensation received <br/>
<a id="pl.151.26"></a><var>151.26</var>from public employment activities other than those as a volunteer firefighter;<br/>
<a id="pl.151.27"></a><var>151.27</var>    (16) pipefitters and associated trades personnel employed by Independent School <br/>
<a id="pl.151.28"></a><var>151.28</var>District No. 625, St. Paul, with coverage under a collective bargaining agreement by the <br/>
<a id="pl.151.29"></a><var>151.29</var>pipefitters local 455 pension plan who were either first employed after May 1, 1997, or, <br/>
<a id="pl.151.30"></a><var>151.30</var>if first employed before May 2, 1997, elected to be excluded under Laws 1997, chapter <br/>
<a id="pl.151.31"></a><var>151.31</var>241, article 2, section 12;<br/>
<a id="pl.151.32"></a><var>151.32</var>    (17) electrical workers, plumbers, carpenters, and associated trades personnel <br/>
<a id="pl.151.33"></a><var>151.33</var>employed by Independent School District No. 625, St. Paul, or the city of St. Paul, <br/>
<a id="pl.151.34"></a><var>151.34</var>who have retirement coverage under a collective bargaining agreement by the Electrical <br/>
<a id="pl.151.35"></a><var>151.35</var>Workers Local 110 pension plan, the United Association Plumbers Local 34 pension plan, <br/>
<a id="pl.151.36"></a><var>151.36</var>or the Carpenters Local 87 pension plan who were either first employed after May 1, <br/>
<a id="pl.152.1"></a><var>152.1</var>2000, or, if first employed before May 2, 2000, elected to be excluded under Laws 2000, <br/>
<a id="pl.152.2"></a><var>152.2</var>chapter 461, article 7, section 5;<br/>
<a id="pl.152.3"></a><var>152.3</var>    (18) bricklayers, allied craftworkers, cement masons, glaziers, glassworkers, <br/>
<a id="pl.152.4"></a><var>152.4</var>painters, allied tradesworkers, and plasterers employed by the city of St. Paul or <br/>
<a id="pl.152.5"></a><var>152.5</var>Independent School District No. 625, St. Paul, with coverage under a collective <br/>
<a id="pl.152.6"></a><var>152.6</var>bargaining agreement by the Bricklayers and Allied Craftworkers Local 1 pension plan, <br/>
<a id="pl.152.7"></a><var>152.7</var>the Cement Masons Local 633 pension plan, the Glaziers and Glassworkers Local L-1324 <br/>
<a id="pl.152.8"></a><var>152.8</var>pension plan, the Painters and Allied Trades Local 61 pension plan, or the Twin Cities <br/>
<a id="pl.152.9"></a><var>152.9</var>Plasterers Local 265 pension plan who were either first employed after May 1, 2001, or if <br/>
<a id="pl.152.10"></a><var>152.10</var>first employed before May 2, 2001, elected to be excluded under Laws 2001, First Special <br/>
<a id="pl.152.11"></a><var>152.11</var>Session chapter 10, article 10, section 6;<br/>
<a id="pl.152.12"></a><var>152.12</var>    (19) plumbers employed by the Metropolitan Airports Commission, with coverage <br/>
<a id="pl.152.13"></a><var>152.13</var>under a collective bargaining agreement by the Plumbers Local 34 pension plan, who either <br/>
<a id="pl.152.14"></a><var>152.14</var>were first employed after May 1, 2001, or if first employed before May 2, 2001, elected to <br/>
<a id="pl.152.15"></a><var>152.15</var>be excluded under Laws 2001, First Special Session chapter 10, article 10, section 6;<br/>
<a id="pl.152.16"></a><var>152.16</var>    (20) employees who are hired after June 30, 2002, to fill seasonal positions under <br/>
<a id="pl.152.17"></a><var>152.17</var>subdivision 12b which are limited in duration by the employer to 185 consecutive calendar <br/>
<a id="pl.152.18"></a><var>152.18</var>days or less in each year of employment with the governmental subdivision;<br/>
<a id="pl.152.19"></a><var>152.19</var>    (21) persons who are provided supported employment or work-study positions <br/>
<a id="pl.152.20"></a><var>152.20</var>by a governmental subdivision and who participate in an employment or industries <br/>
<a id="pl.152.21"></a><var>152.21</var>program maintained for the benefit of these persons where the governmental subdivision <br/>
<a id="pl.152.22"></a><var>152.22</var>limits the position's duration to three years or less, including persons participating in a <br/>
<a id="pl.152.23"></a><var>152.23</var>federal or state subsidized on-the-job training, work experience, senior citizen, youth, or <br/>
<a id="pl.152.24"></a><var>152.24</var>unemployment relief program where the training or work experience is not provided as a <br/>
<a id="pl.152.25"></a><var>152.25</var>part of, or for, future permanent public employment;<br/>
<a id="pl.152.26"></a><var>152.26</var>    (22) independent contractors and the employees of independent contractors; and<br/>
<a id="pl.152.27"></a><var>152.27</var>    (23) reemployed annuitants of the association during the course of that <br/>
<a id="pl.152.28"></a><var>152.28</var>reemployment.<br/>
<br/>
<a id="bill.12.3.0"></a><a id="pl.152.29"></a><var>152.29</var>    Sec. 3. Minnesota Statutes 2008, section 353.01, is amended by adding a subdivision <br/>
<a id="pl.152.30"></a><var>152.30</var>to read:<br/>
<a id="pl.152.31"></a><var>152.31</var>    Subd. 47. <b>MERF division.</b> "MERF division" means the separate retirement plan <br/>
<a id="pl.152.32"></a><var>152.32</var>within the general employees retirement plan of the Public Employees Retirement <br/>
<a id="pl.152.33"></a><var>152.33</var>Association containing the applicable provisions of Minnesota Statutes 2008, chapter <br/>
<a id="pl.152.34"></a><var>152.34</var>422A.<br/>
<br/>
<a id="bill.12.4.0"></a><a id="pl.153.1"></a><var>153.1</var>    Sec. 4. Minnesota Statutes 2008, section 353.01, is amended by adding a subdivision <br/>
<a id="pl.153.2"></a><var>153.2</var>to read:<br/>
<a id="pl.153.3"></a><var>153.3</var>    Subd. 48. <b>MERF division account.</b> "MERF division account" means the separate <br/>
<a id="pl.153.4"></a><var>153.4</var>account within the retirement fund of the general employees retirement fund of the <br/>
<a id="pl.153.5"></a><var>153.5</var>Public Employees Retirement Association in which the actuarial liabilities of the former <br/>
<a id="pl.153.6"></a><var>153.6</var>Minneapolis Employees Retirement Fund are held, and in which the assets of the former <br/>
<a id="pl.153.7"></a><var>153.7</var>Minneapolis Employees Retirement Fund are credited.<br/>
<br/>
<a id="bill.12.5.0"></a><a id="pl.153.8"></a><var>153.8</var>    Sec. 5. Minnesota Statutes 2008, section 353.05, is amended to read:<br/>
<a id="pl.153.9"></a><var>153.9</var><b>353.05 CUSTODIAN OF FUNDS.</b><br/>
<a id="pl.153.10"></a><var>153.10</var>The commissioner of management and budget shall be ex officio treasurer of the <br/>
<a id="pl.153.11"></a><var>153.11</var>retirement funds of the association, including the MERF division,  and the general bond of <br/>
<a id="pl.153.12"></a><var>153.12</var>the commissioner of management and budget to the state shall must be so conditioned <br/>
<a id="pl.153.13"></a><var>153.13</var>as to cover all liability for acts as treasurer of these funds. All moneys money of the <br/>
<a id="pl.153.14"></a><var>153.14</var>association received by the commissioner of management and budget shall must be set <br/>
<a id="pl.153.15"></a><var>153.15</var>aside in the state treasury to the credit of the proper fund or account. The commissioner <br/>
<a id="pl.153.16"></a><var>153.16</var>of management and budget shall transmit monthly to the executive director a detailed <br/>
<a id="pl.153.17"></a><var>153.17</var>statement of all amounts so received and credited to the fund funds, including the MERF <br/>
<a id="pl.153.18"></a><var>153.18</var>division. Payments out of the fund shall funds, including the MERF division, may only <br/>
<a id="pl.153.19"></a><var>153.19</var>be made only on warrants issued by the commissioner of management and budget, upon <br/>
<a id="pl.153.20"></a><var>153.20</var>abstracts signed by the executive director; provided that abstracts for investment may be <br/>
<a id="pl.153.21"></a><var>153.21</var>signed by the secretary executive director of the State Board of Investment.<br/>
<br/>
<a id="bill.12.6.0"></a><a id="pl.153.22"></a><var>153.22</var>    Sec. 6. Minnesota Statutes 2009 Supplement, section 353.06, is amended to read:<br/>
<a id="pl.153.23"></a><var>153.23</var><b>353.06 STATE BOARD OF INVESTMENT TO INVEST FUNDS.</b><br/>
<a id="pl.153.24"></a><var>153.24</var>The executive director shall from time to time certify to the State Board of <br/>
<a id="pl.153.25"></a><var>153.25</var>Investment for investment such portions of the retirement fund funds of the association, <br/>
<a id="pl.153.26"></a><var>153.26</var>including the MERF division, as in its the director's judgment may not be required for <br/>
<a id="pl.153.27"></a><var>153.27</var>immediate use. The State Board of Investment shall thereupon invest and reinvest the sum <br/>
<a id="pl.153.28"></a><var>153.28</var>so certified, or transferred, in such securities as are duly authorized as legal investments <br/>
<a id="pl.153.29"></a><var>153.29</var>for state employees retirement fund under section 11A.24 and shall have has authority to <br/>
<a id="pl.153.30"></a><var>153.30</var>sell, convey, and exchange such securities and invest and reinvest the securities when it <br/>
<a id="pl.153.31"></a><var>153.31</var>deems it desirable to do so and shall sell securities upon request of the board of trustees <br/>
<a id="pl.153.32"></a><var>153.32</var>executive director when such funds are needed for its purposes. All of the provisions <br/>
<a id="pl.153.33"></a><var>153.33</var>regarding accounting procedures and restrictions and conditions for the purchase and <br/>
<a id="pl.153.34"></a><var>153.34</var>sale of securities under chapter 11A must apply to the accounting, purchase and sale of <br/>
<a id="pl.154.1"></a><var>154.1</var>securities for the funds of the Public Employees Retirement fund Association, including <br/>
<a id="pl.154.2"></a><var>154.2</var>the MERF division. <br/>
<br/>
<a id="bill.12.7.0"></a><a id="pl.154.3"></a><var>154.3</var>    Sec. 7. Minnesota Statutes 2008, section 353.27, as amended by Laws 2009, chapter <br/>
<a id="pl.154.4"></a><var>154.4</var>169, article 1, section 32, and article 4, sections 9, 10, 11, and 12, is amended to read:<br/>
<a id="pl.154.5"></a><var>154.5</var><b>353.27 </b><b>PUBLIC</b><b> </b><b>GENERAL </b><b>EMPLOYEES RETIREMENT FUND.</b><br/>
<a id="pl.154.6"></a><var>154.6</var>    Subdivision 1. <b>Income; disbursements.</b> There is a special fund known as the <br/>
<a id="pl.154.7"></a><var>154.7</var>"public general employees retirement fund," the "retirement fund," or the "fund," which <br/>
<a id="pl.154.8"></a><var>154.8</var>must include all the assets of the general employees retirement plan of the association. <br/>
<a id="pl.154.9"></a><var>154.9</var>This fund must be credited with all contributions, all interest and all other income of the <br/>
<a id="pl.154.10"></a><var>154.10</var>general employees retirement plan of the Public Employees Retirement Association that <br/>
<a id="pl.154.11"></a><var>154.11</var>are authorized by law. From this fund there is appropriated the payments authorized by <br/>
<a id="pl.154.12"></a><var>154.12</var>this chapter sections 353.01 to 353.46 in the amounts and at such time provided herein, <br/>
<a id="pl.154.13"></a><var>154.13</var>including the expenses of administering the general employees retirement plan and fund.<br/>
<a id="pl.154.14"></a><var>154.14</var>    Subd. 1a. <b>MERF division account established; revenue and disbursements.</b> The <br/>
<a id="pl.154.15"></a><var>154.15</var>MERF division account is established as a special account. The MERF division account <br/>
<a id="pl.154.16"></a><var>154.16</var>includes all of the assets of the former Minneapolis Employees Retirement Fund that <br/>
<a id="pl.154.17"></a><var>154.17</var>were transferred to the administration of the Public Employees Retirement Association <br/>
<a id="pl.154.18"></a><var>154.18</var>under section 353.50. The special account is credited with the contributions under <br/>
<a id="pl.154.19"></a><var>154.19</var>section 353.50, subdivision 7, state aid under sections 356.43 and 422A.101, subdivision <br/>
<a id="pl.154.20"></a><var>154.20</var>3, investment performance on the special account assets, and all other income of the <br/>
<a id="pl.154.21"></a><var>154.21</var>MERF division authorized by law. The payments of annuities and benefits authorized by <br/>
<a id="pl.154.22"></a><var>154.22</var>Minnesota Statutes 2008, chapter 422A, in the amounts and at the times provided in <br/>
<a id="pl.154.23"></a><var>154.23</var>that chapter, and the administrative expenses of the MERF division are appropriated <br/>
<a id="pl.154.24"></a><var>154.24</var>from the special account.<br/>
<a id="pl.154.25"></a><var>154.25</var>    Subd. 2. <b>General employees retirement plan; </b><b>employee contribution.</b> (a) For <br/>
<a id="pl.154.26"></a><var>154.26</var>a basic member of the general employees retirement plan of the Public Employees <br/>
<a id="pl.154.27"></a><var>154.27</var>Retirement Association, the employee contribution is 9.10 percent of salary. For a <br/>
<a id="pl.154.28"></a><var>154.28</var>coordinated member of the general employees retirement plan of the Public Employees <br/>
<a id="pl.154.29"></a><var>154.29</var>Retirement Association, the employee contribution is six percent of salary plus any <br/>
<a id="pl.154.30"></a><var>154.30</var>contribution rate adjustment under subdivision 3b.<br/>
<a id="pl.154.31"></a><var>154.31</var>(b) These contributions must be made by deduction from salary as defined in section <br/>
<statute_ref><a id="pl.154.32"></a><var>154.32</var>353.01, subdivision 10
         </statute_ref>, in the manner provided in subdivision 4. If any portion of a <br/>
<a id="pl.154.33"></a><var>154.33</var>member's salary is paid from other than public funds, the member's employee contribution <br/>
<a id="pl.154.34"></a><var>154.34</var>must be based on the total salary received by the member from all sources.<br/>
<a id="pl.155.1"></a><var>155.1</var>    Subd. 3. <b>General employees retirement plan; </b><b>employer contribution.</b> (a) For <br/>
<a id="pl.155.2"></a><var>155.2</var>a basic member of the general employees retirement plan of the Public Employees <br/>
<a id="pl.155.3"></a><var>155.3</var>Retirement Association, the employer contribution is 9.10 percent of salary. For a <br/>
<a id="pl.155.4"></a><var>155.4</var>coordinated member of the general employees retirement plan of the Public Employees <br/>
<a id="pl.155.5"></a><var>155.5</var>Retirement Association, the employer contribution is six percent of salary plus any <br/>
<a id="pl.155.6"></a><var>155.6</var>contribution rate adjustment under subdivision 3b.<br/>
<a id="pl.155.7"></a><var>155.7</var>(b) This contribution must be made from funds available to the employing <br/>
<a id="pl.155.8"></a><var>155.8</var>subdivision by the means and in the manner provided in section 
         <statute_ref>353.28</statute_ref>.<br/>
<a id="pl.155.9"></a><var>155.9</var>    Subd. 3a. <b>Additional employer contribution.</b> (a) An additional employer <br/>
<a id="pl.155.10"></a><var>155.10</var>contribution to the general employees retirement fund of the Public Employees Retirement <br/>
<a id="pl.155.11"></a><var>155.11</var>Association must be made equal to the following applicable percentage of the total salary <br/>
<a id="pl.155.12"></a><var>155.12</var>amount for "basic members" and for "coordinated members":<br/>
<table>
<col width="50px"/>
<col width="25"/>
<col width="2.5"/>
<col width="15"/>
<col width="2.5"/>
<col width="20"/>
<tr>
<td><a id="pl.155.13"></a><var>155.13</var><br/>
</td>
<td></td>
<td></td>
<td align="center">Basic Program<br/>
</td>
<td></td>
<td align="center">Coordinated Program<br/>
</td>
</tr>
<tr>
<td><a id="pl.155.14"></a><var>155.14</var><br/>
</td>
<td>Effective before January 1, 2006<br/>
</td>
<td></td>
<td align="center">2.68<br/>
</td>
<td></td>
<td align="center">.43<br/>
</td>
</tr>
<tr>
<td><a id="pl.155.15"></a><var>155.15</var><br/>
</td>
<td>Effective January 1, 2006<br/>
</td>
<td></td>
<td align="center">2.68<br/>
</td>
<td></td>
<td align="center">.50<br/>
</td>
</tr>
<tr>
<td><a id="pl.155.16"></a><var>155.16</var><br/>
</td>
<td>Effective January 1, 2009<br/>
</td>
<td></td>
<td align="center">2.68<br/>
</td>
<td></td>
<td align="center">.75<br/>
</td>
</tr>
<tr>
<td><a id="pl.155.17"></a><var>155.17</var><br/>
</td>
<td valign="top">Effective January 1, 2010<br/>
</td>
<td></td>
<td align="center" valign="top">2.68<br/>
</td>
<td></td>
<td align="center" valign="top">1.00<br/>
</td>
</tr>
</table><a id="pl.155.18"></a><var>155.18</var>These contributions must be made from funds available to the employing subdivision <br/>
<a id="pl.155.19"></a><var>155.19</var>by the means and in the manner provided in section 
         <statute_ref>353.28</statute_ref>.<br/>
<a id="pl.155.20"></a><var>155.20</var>(b) The coordinated program contribution rates set forth in paragraph (a) effective <br/>
<a id="pl.155.21"></a><var>155.21</var>for January 1, 2009, or January 1, 2010, must not be implemented if, following receipt of <br/>
<a id="pl.155.22"></a><var>155.22</var>the July 1, 2008, or July 1, 2009, annual actuarial valuation reports report under section <br/>
<statute_ref><a id="pl.155.23"></a><var>155.23</var>356.215
         </statute_ref>, respectively, the actuarially required contributions are equal to or less than the <br/>
<a id="pl.155.24"></a><var>155.24</var>total rates under this section in effect as of January 1, 2008.<br/>
<a id="pl.155.25"></a><var>155.25</var>(c) This subdivision is repealed once the actuarial value of the assets of the general <br/>
<a id="pl.155.26"></a><var>155.26</var>employees retirement plan of the Public Employees Retirement Association equal or <br/>
<a id="pl.155.27"></a><var>155.27</var>exceed the actuarial accrued liability of the plan as determined by the actuary retained <br/>
<a id="pl.155.28"></a><var>155.28</var>under sections 
         <statute_ref>356.214</statute_ref> and 
         <statute_ref>356.215</statute_ref>. The repeal is effective on the first day of the first full <br/>
<a id="pl.155.29"></a><var>155.29</var>pay period occurring after March 31 of the calendar year following the issuance of the <br/>
<a id="pl.155.30"></a><var>155.30</var>actuarial valuation upon which the repeal is based.<br/>
<a id="pl.155.31"></a><var>155.31</var>    Subd. 3b. <b>Change in employee and employer contributions in certain instances.</b><br/>
<a id="pl.155.32"></a><var>155.32</var>(a) For purposes of this section, a contribution sufficiency exists if the total of the <br/>
<a id="pl.155.33"></a><var>155.33</var>employee contribution under subdivision 2, the employer contribution under subdivision <br/>
<a id="pl.155.34"></a><var>155.34</var>3, the additional employer contribution under subdivision 3a, and any additional <br/>
<a id="pl.155.35"></a><var>155.35</var>contribution previously imposed under this subdivision exceeds the total of the normal <br/>
<a id="pl.155.36"></a><var>155.36</var>cost, the administrative expenses, and the amortization contribution of the general <br/>
<a id="pl.155.37"></a><var>155.37</var>employees retirement plan as reported in the most recent actuarial valuation of the <br/>
<a id="pl.156.1"></a><var>156.1</var>retirement plan prepared by the actuary retained under section 
         <statute_ref>356.214</statute_ref> and prepared under <br/>
<a id="pl.156.2"></a><var>156.2</var>section 
         <statute_ref>356.215</statute_ref> and the standards for actuarial work of the Legislative Commission on <br/>
<a id="pl.156.3"></a><var>156.3</var>Pensions and Retirement. For purposes of this section, a contribution deficiency exists if <br/>
<a id="pl.156.4"></a><var>156.4</var>the total of the employee contributions under subdivision 2, the employer contributions <br/>
<a id="pl.156.5"></a><var>156.5</var>under subdivision 3, the additional employer contribution under subdivision 3a, and any <br/>
<a id="pl.156.6"></a><var>156.6</var>additional contribution previously imposed under this subdivision is less than the total <br/>
<a id="pl.156.7"></a><var>156.7</var>of the normal cost, the administrative expenses, and the amortization contribution of the <br/>
<a id="pl.156.8"></a><var>156.8</var>general employees retirement plan as reported in the most recent actuarial valuation of the <br/>
<a id="pl.156.9"></a><var>156.9</var>retirement plan prepared by the actuary retained under section 
         <statute_ref>356.214</statute_ref> and prepared under <br/>
<a id="pl.156.10"></a><var>156.10</var>section 
         <statute_ref>356.215</statute_ref> and the standards for actuarial work of the Legislative Commission on <br/>
<a id="pl.156.11"></a><var>156.11</var>Pensions and Retirement.<br/>
<a id="pl.156.12"></a><var>156.12</var>(b) Employee and employer contributions to the general employees retirement plan <br/>
<a id="pl.156.13"></a><var>156.13</var>under subdivisions 2 and 3 must be adjusted:<br/>
<a id="pl.156.14"></a><var>156.14</var>(1) if, after July 1, 2010, the regular actuarial valuations of the general employees <br/>
<a id="pl.156.15"></a><var>156.15</var>retirement plan of the Public Employees Retirement Association under section 
         <statute_ref>356.215</statute_ref> <br/>
<a id="pl.156.16"></a><var>156.16</var>indicate that there is a contribution sufficiency under paragraph (a) equal to or greater <br/>
<a id="pl.156.17"></a><var>156.17</var>than 0.5 percent of covered payroll for two consecutive years, the coordinated program <br/>
<a id="pl.156.18"></a><var>156.18</var>employee and employer contribution rates must be decreased as determined under <br/>
<a id="pl.156.19"></a><var>156.19</var>paragraph (c) to a level such that the sufficiency equals no more than 0.25 percent of <br/>
<a id="pl.156.20"></a><var>156.20</var>covered payroll based on the most recent actuarial valuation; or<br/>
<a id="pl.156.21"></a><var>156.21</var>(2) if, after July 1, 2010, the regular actuarial valuations of the general employees <br/>
<a id="pl.156.22"></a><var>156.22</var>retirement plan of the Public Employees Retirement Association under section 
         <statute_ref>356.215</statute_ref> <br/>
<a id="pl.156.23"></a><var>156.23</var>indicate that there is a deficiency equal to or greater than 0.5 percent of covered payroll for <br/>
<a id="pl.156.24"></a><var>156.24</var>two consecutive years, the coordinated program employee and employer contribution rates <br/>
<a id="pl.156.25"></a><var>156.25</var>must be increased as determined under paragraph (c) to a level such that no deficiency <br/>
<a id="pl.156.26"></a><var>156.26</var>exists based on the most recent actuarial valuation.<br/>
<a id="pl.156.27"></a><var>156.27</var>(c) The general employees retirement plan contribution rate increase or decrease <br/>
<a id="pl.156.28"></a><var>156.28</var>must be determined by the executive director of the Public Employees Retirement <br/>
<a id="pl.156.29"></a><var>156.29</var>Association, must be reported to the chair and the executive director of the Legislative <br/>
<a id="pl.156.30"></a><var>156.30</var>Commission on Pensions and Retirement on or before the next February 1, and, if the <br/>
<a id="pl.156.31"></a><var>156.31</var>Legislative Commission on Pensions and Retirement does not recommend against the rate <br/>
<a id="pl.156.32"></a><var>156.32</var>change or does not recommend a modification in the rate change, is effective on the <br/>
<a id="pl.156.33"></a><var>156.33</var>next July 1 following the determination by the executive director that a contribution <br/>
<a id="pl.156.34"></a><var>156.34</var>deficiency or sufficiency has existed for two consecutive fiscal years based on the most <br/>
<a id="pl.156.35"></a><var>156.35</var>recent actuarial valuations under section 
         <statute_ref>356.215</statute_ref>. If the actuarially required contribution <br/>
<a id="pl.156.36"></a><var>156.36</var>of the general employees retirement plan exceeds or is less than the total support provided <br/>
<a id="pl.157.1"></a><var>157.1</var>by the combined employee and employer contribution rates by more than 0.5 percent of <br/>
<a id="pl.157.2"></a><var>157.2</var>covered payroll, the general employees retirement plan coordinated program employee <br/>
<a id="pl.157.3"></a><var>157.3</var>and employer contribution rates must be adjusted incrementally over one or more years to <br/>
<a id="pl.157.4"></a><var>157.4</var>a level such that there remains a contribution sufficiency of no more than 0.25 percent <br/>
<a id="pl.157.5"></a><var>157.5</var>of covered payroll.<br/>
<a id="pl.157.6"></a><var>157.6</var>(d) No incremental adjustment may exceed 0.25 percent for either the general <br/>
<a id="pl.157.7"></a><var>157.7</var>employees retirement plan coordinated program employee and employer contribution rates <br/>
<a id="pl.157.8"></a><var>157.8</var>per year in which any adjustment is implemented. A general employees retirement plan <br/>
<a id="pl.157.9"></a><var>157.9</var>contribution rate adjustment under this subdivision must not be made until at least two <br/>
<a id="pl.157.10"></a><var>157.10</var>years have passed since fully implementing a previous adjustment under this subdivision.<br/>
<a id="pl.157.11"></a><var>157.11</var>(e) The general employees retirement plan contribution sufficiency or deficiency <br/>
<a id="pl.157.12"></a><var>157.12</var>determination under paragraphs (a) to (d) must be made without the inclusion of the <br/>
<a id="pl.157.13"></a><var>157.13</var>contributions to, the funded condition of, or the actuarial funding requirements of the <br/>
<a id="pl.157.14"></a><var>157.14</var>MERF division.<br/>
<a id="pl.157.15"></a><var>157.15</var>    Subd. 4. <b>Employer reporting requirements; contributions; member status.</b><br/>
<a id="pl.157.16"></a><var>157.16</var>(a) A representative authorized by the head of each department shall deduct employee <br/>
<a id="pl.157.17"></a><var>157.17</var>contributions from the salary of each employee who qualifies for membership in the <br/>
<a id="pl.157.18"></a><var>157.18</var>general employees retirement plan of the Public Employees Retirement Association or in <br/>
<a id="pl.157.19"></a><var>157.19</var>the public employees police and fire retirement plan under this chapter and remit payment <br/>
<a id="pl.157.20"></a><var>157.20</var>in a manner prescribed by the executive director for the aggregate amount of the employee <br/>
<a id="pl.157.21"></a><var>157.21</var>contributions, the employer contributions and the additional employer contributions to be <br/>
<a id="pl.157.22"></a><var>157.22</var>received within 14 calendar days. The head of each department or the person's designee <br/>
<a id="pl.157.23"></a><var>157.23</var>shall for each pay period submit to the association a salary deduction report in the format <br/>
<a id="pl.157.24"></a><var>157.24</var>prescribed by the executive director. Data required to be submitted as part of salary <br/>
<a id="pl.157.25"></a><var>157.25</var>deduction reporting must include, but are not limited to:<br/>
<a id="pl.157.26"></a><var>157.26</var>(1)  the legal names and Social Security numbers of employees who are members;<br/>
<a id="pl.157.27"></a><var>157.27</var>(2) the amount of each employee's salary deduction;<br/>
<a id="pl.157.28"></a><var>157.28</var>(3) the amount of salary from which each deduction was made;<br/>
<a id="pl.157.29"></a><var>157.29</var>(4) the beginning and ending dates of the payroll period covered and the date of <br/>
<a id="pl.157.30"></a><var>157.30</var>actual payment; and<br/>
<a id="pl.157.31"></a><var>157.31</var>(5) adjustments or corrections covering past pay periods.<br/>
<a id="pl.157.32"></a><var>157.32</var>(b) Employers must furnish the data required for enrollment for each new employee <br/>
<a id="pl.157.33"></a><var>157.33</var>who qualifies for membership in the general employees retirement plan of the Public <br/>
<a id="pl.157.34"></a><var>157.34</var>Employees Retirement Association or in the public employees police and fire retirement <br/>
<a id="pl.157.35"></a><var>157.35</var>plan in the format prescribed by the executive director. The required enrollment data <br/>
<a id="pl.157.36"></a><var>157.36</var>on new employees must be submitted to the association prior to or concurrent with the <br/>
<a id="pl.158.1"></a><var>158.1</var>submission of the initial employee salary deduction. The employer shall also report <br/>
<a id="pl.158.2"></a><var>158.2</var>to the association all member employment status changes, such as leaves of absence, <br/>
<a id="pl.158.3"></a><var>158.3</var>terminations, and death, and shall report the effective dates of those changes, on an <br/>
<a id="pl.158.4"></a><var>158.4</var>ongoing basis for the payroll cycle in which they occur. The employer shall furnish data, <br/>
<a id="pl.158.5"></a><var>158.5</var>forms, and reports as may be required by the executive director for proper administration <br/>
<a id="pl.158.6"></a><var>158.6</var>of the retirement system. Before implementing new or different computerized reporting <br/>
<a id="pl.158.7"></a><var>158.7</var>requirements, the executive director shall give appropriate advance notice to governmental <br/>
<a id="pl.158.8"></a><var>158.8</var>subdivisions to allow time for system modifications.<br/>
<a id="pl.158.9"></a><var>158.9</var>(c) Notwithstanding paragraph (a), the association executive director may provide <br/>
<a id="pl.158.10"></a><var>158.10</var>for less frequent reporting and payments for small employers.<br/>
<a id="pl.158.11"></a><var>158.11</var>    Subd. 7. <b>Adjustment for erroneous receipts or disbursements.</b> (a) Except <br/>
<a id="pl.158.12"></a><var>158.12</var>as provided in paragraph (b), erroneous employee deductions and erroneous employer <br/>
<a id="pl.158.13"></a><var>158.13</var>contributions and additional employer contributions to the general employees retirement <br/>
<a id="pl.158.14"></a><var>158.14</var>plan of the Public Employees Retirement Association or to the public employees police <br/>
<a id="pl.158.15"></a><var>158.15</var>and fire retirement plan for a person, who otherwise does not qualify for membership <br/>
<a id="pl.158.16"></a><var>158.16</var>under this chapter, are considered:<br/>
<a id="pl.158.17"></a><var>158.17</var>(1) valid if the initial erroneous deduction began before January 1, 1990. Upon <br/>
<a id="pl.158.18"></a><var>158.18</var>determination of the error by the association, the person may continue membership in the <br/>
<a id="pl.158.19"></a><var>158.19</var>association while employed in the same position for which erroneous deductions were <br/>
<a id="pl.158.20"></a><var>158.20</var>taken, or file a written election to terminate membership and apply for a refund upon <br/>
<a id="pl.158.21"></a><var>158.21</var>termination of public service or defer an annuity under section 
         <statute_ref>353.34</statute_ref>; or <br/>
<a id="pl.158.22"></a><var>158.22</var>(2) invalid, if the initial erroneous employee deduction began on or after January 1, <br/>
<a id="pl.158.23"></a><var>158.23</var>1990. Upon determination of the error, the association shall refund all erroneous employee <br/>
<a id="pl.158.24"></a><var>158.24</var>deductions and all erroneous employer contributions as specified in paragraph (e). No <br/>
<a id="pl.158.25"></a><var>158.25</var>person may claim a right to continued or past membership in the association based on <br/>
<a id="pl.158.26"></a><var>158.26</var>erroneous deductions which began on or after January 1, 1990. <br/>
<a id="pl.158.27"></a><var>158.27</var>(b) Erroneous deductions taken from the salary of a person who did not qualify for <br/>
<a id="pl.158.28"></a><var>158.28</var>membership in the general employees retirement plan of the Public Employees Retirement <br/>
<a id="pl.158.29"></a><var>158.29</var>Association or in the public employees police and fire retirement plan by virtue of <br/>
<a id="pl.158.30"></a><var>158.30</var>concurrent employment before July 1, 1978, which required contributions to another <br/>
<a id="pl.158.31"></a><var>158.31</var>retirement fund or relief association established for the benefit of officers and employees <br/>
<a id="pl.158.32"></a><var>158.32</var>of a governmental subdivision, are invalid. Upon discovery of the error, the association <br/>
<a id="pl.158.33"></a><var>158.33</var>shall remove all invalid service and, upon termination of public service, the association <br/>
<a id="pl.158.34"></a><var>158.34</var>shall refund all erroneous employee deductions to the person, with interest as determined <br/>
<a id="pl.158.35"></a><var>158.35</var>under section 
         <statute_ref>353.34, subdivision 2</statute_ref>, and all erroneous employer contributions without <br/>
<a id="pl.158.36"></a><var>158.36</var>interest to the employer. This paragraph has both retroactive and prospective application. <br/>
<a id="pl.159.1"></a><var>159.1</var>(c) Adjustments to correct employer contributions and employee deductions taken <br/>
<a id="pl.159.2"></a><var>159.2</var>in error from amounts which are not salary under section 
         <statute_ref>353.01, subdivision 10</statute_ref>, must <br/>
<a id="pl.159.3"></a><var>159.3</var>be made as specified in paragraph (e). The period of adjustment must be limited to the <br/>
<a id="pl.159.4"></a><var>159.4</var>fiscal year in which the error is discovered by the association and the immediate two <br/>
<a id="pl.159.5"></a><var>159.5</var>preceding fiscal years. <br/>
<a id="pl.159.6"></a><var>159.6</var>(d) If there is evidence of fraud or other misconduct on the part of the employee or <br/>
<a id="pl.159.7"></a><var>159.7</var>the employer, the board of trustees may authorize adjustments to the account of a member <br/>
<a id="pl.159.8"></a><var>159.8</var>or former member to correct erroneous employee deductions and employer contributions <br/>
<a id="pl.159.9"></a><var>159.9</var>on invalid salary and the recovery of any overpayments for a period longer than provided <br/>
<a id="pl.159.10"></a><var>159.10</var>for under paragraph (c).<br/>
<a id="pl.159.11"></a><var>159.11</var>(e) Upon discovery of the receipt of erroneous employee deductions and employer <br/>
<a id="pl.159.12"></a><var>159.12</var>contributions under paragraph (a), clause (2), or paragraph (c), the association must require <br/>
<a id="pl.159.13"></a><var>159.13</var>the employer to discontinue the erroneous employee deductions and erroneous employer <br/>
<a id="pl.159.14"></a><var>159.14</var>contributions reported on behalf of a member. Upon discontinuation, the association must:<br/>
<a id="pl.159.15"></a><var>159.15</var>(1) for a member, provide a refund or credit to the employer in the amount of the <br/>
<a id="pl.159.16"></a><var>159.16</var>invalid employee deductions with interest on the invalid employee deductions at the rate <br/>
<a id="pl.159.17"></a><var>159.17</var>specified under section 
         <statute_ref>353.34, subdivision 2</statute_ref>, from the received date of each invalid salary <br/>
<a id="pl.159.18"></a><var>159.18</var>transaction through the date the credit or refund is made; and the employer must pay the <br/>
<a id="pl.159.19"></a><var>159.19</var>refunded employee deductions plus interest to the member;<br/>
<a id="pl.159.20"></a><var>159.20</var>(2) for a former member who:<br/>
<a id="pl.159.21"></a><var>159.21</var>(i) is not receiving a retirement annuity or benefit, return the erroneous employee <br/>
<a id="pl.159.22"></a><var>159.22</var>deductions to the former member through a refund with interest at the rate specified under <br/>
<a id="pl.159.23"></a><var>159.23</var>section 
         <statute_ref>353.34, subdivision 2</statute_ref>, from the received date of each invalid salary transaction <br/>
<a id="pl.159.24"></a><var>159.24</var>through the date the credit or refund is made; or<br/>
<a id="pl.159.25"></a><var>159.25</var>(ii) is receiving a retirement annuity or disability benefit, or a person who is <br/>
<a id="pl.159.26"></a><var>159.26</var>receiving an optional annuity or survivor benefit, for whom it has been determined an <br/>
<a id="pl.159.27"></a><var>159.27</var>overpayment must be recovered, adjust the payment amount and recover the overpayments <br/>
<a id="pl.159.28"></a><var>159.28</var>as provided under this section; and<br/>
<a id="pl.159.29"></a><var>159.29</var>(3) return the invalid employer contributions reported on behalf of a member or <br/>
<a id="pl.159.30"></a><var>159.30</var>former member to the employer by providing a credit against future contributions payable <br/>
<a id="pl.159.31"></a><var>159.31</var>by the employer.<br/>
<a id="pl.159.32"></a><var>159.32</var>(f) In the event that a salary warrant or check from which a deduction for the <br/>
<a id="pl.159.33"></a><var>159.33</var>retirement fund was taken has been canceled or the amount of the warrant or check <br/>
<a id="pl.159.34"></a><var>159.34</var>returned to the funds of the department making the payment, a refund of the sum <br/>
<a id="pl.159.35"></a><var>159.35</var>deducted, or any portion of it that is required to adjust the deductions, must be made <br/>
<a id="pl.159.36"></a><var>159.36</var>to the department or institution.<br/>
<a id="pl.160.1"></a><var>160.1</var>(g) If the accrual date of any retirement annuity, survivor benefit, or disability benefit <br/>
<a id="pl.160.2"></a><var>160.2</var>is within the limitation period specified in paragraph (c), and an overpayment has resulted <br/>
<a id="pl.160.3"></a><var>160.3</var>by using invalid service or salary, or due to any erroneous calculation procedure, the <br/>
<a id="pl.160.4"></a><var>160.4</var>association must recalculate the annuity or benefit payable and recover any overpayment <br/>
<a id="pl.160.5"></a><var>160.5</var>as provided under subdivision 7b.<br/>
<a id="pl.160.6"></a><var>160.6</var>(h) Notwithstanding the provisions of this subdivision, the association may apply <br/>
<a id="pl.160.7"></a><var>160.7</var>the Revenue Procedures defined in the federal Internal Revenue Service Employee Plans <br/>
<a id="pl.160.8"></a><var>160.8</var>Compliance Resolution System and not issue a refund of erroneous employee deductions <br/>
<a id="pl.160.9"></a><var>160.9</var>and employer contributions or not recover a small overpayment of benefits if the cost to <br/>
<a id="pl.160.10"></a><var>160.10</var>correct the error would exceed the amount of the member refund or overpayment.<br/>
<a id="pl.160.11"></a><var>160.11</var>(i) Any fees or penalties assessed by the federal Internal Revenue Service for any <br/>
<a id="pl.160.12"></a><var>160.12</var>failure by an employer to follow the statutory requirements for reporting eligible members <br/>
<a id="pl.160.13"></a><var>160.13</var>and salary must be paid by the employer.<br/>
<a id="pl.160.14"></a><var>160.14</var>    Subd. 7a. <b>Deductions or contributions transmitted by error.</b> (a) If employee <br/>
<a id="pl.160.15"></a><var>160.15</var>deductions and employer contributions under this section, section 353.50, 353.65, or <br/>
<a id="pl.160.16"></a><var>160.16</var>353E.03 were erroneously transmitted to the association, but should have been transmitted <br/>
<a id="pl.160.17"></a><var>160.17</var>to another Minnesota public pension plan, the executive director shall transfer the <br/>
<a id="pl.160.18"></a><var>160.18</var>erroneous employee deductions and employer contributions to the appropriate retirement <br/>
<a id="pl.160.19"></a><var>160.19</var>fund or individual account, as applicable, without interest. The time limitations specified <br/>
<a id="pl.160.20"></a><var>160.20</var>in subdivisions 7 and 12 do not apply.<br/>
<a id="pl.160.21"></a><var>160.21</var>(b) For purposes of this subdivision, a Minnesota public pension plan means a <br/>
<a id="pl.160.22"></a><var>160.22</var>plan specified in section 
         <statute_ref>356.30, subdivision 3</statute_ref>, or the plans governed by chapters 353D <br/>
<a id="pl.160.23"></a><var>160.23</var>and 354B. <br/>
<a id="pl.160.24"></a><var>160.24</var>(c) A potential transfer under paragraph (a) that is reasonably determined to cause <br/>
<a id="pl.160.25"></a><var>160.25</var>the plan to fail to be a qualified plan under section 401(a) of the federal Internal Revenue <br/>
<a id="pl.160.26"></a><var>160.26</var>Code, as amended, must not be made by the executive director of the association. Within <br/>
<a id="pl.160.27"></a><var>160.27</var>30 days after being notified by the Public Employees Retirement Association of an <br/>
<a id="pl.160.28"></a><var>160.28</var>unmade potential transfer under this paragraph, the employer of the affected person <br/>
<a id="pl.160.29"></a><var>160.29</var>must transmit an amount representing the applicable salary deductions and employer <br/>
<a id="pl.160.30"></a><var>160.30</var>contributions, without interest, to the retirement fund of the appropriate Minnesota public <br/>
<a id="pl.160.31"></a><var>160.31</var>pension plan, or to the applicable individual account if the proper coverage is by a defined <br/>
<a id="pl.160.32"></a><var>160.32</var>contribution plan. The association must provide the employing unit a credit for the amount <br/>
<a id="pl.160.33"></a><var>160.33</var>of the erroneous salary deductions and employer contributions against future contributions <br/>
<a id="pl.160.34"></a><var>160.34</var>from the employer. If the employing unit receives a credit under this paragraph, the <br/>
<a id="pl.160.35"></a><var>160.35</var>employing unit is responsible for refunding to the applicable employee any amount that <br/>
<a id="pl.160.36"></a><var>160.36</var>had been erroneously deducted from the person's salary.<br/>
<a id="pl.161.1"></a><var>161.1</var>    Subd. 7b. <b>Recovery of overpayments.</b> (a) In the event the executive director <br/>
<a id="pl.161.2"></a><var>161.2</var>determines that an overpaid annuity or benefit that from the general employees retirement <br/>
<a id="pl.161.3"></a><var>161.3</var>plan of the Public Employees Retirement Association, the public employees police and <br/>
<a id="pl.161.4"></a><var>161.4</var>fire retirement plan, or the local government correctional employees retirement plan is <br/>
<a id="pl.161.5"></a><var>161.5</var>the result of invalid salary included in the average salary used to calculate the payment <br/>
<a id="pl.161.6"></a><var>161.6</var>amount must be recovered, the association must determine the amount of the employee <br/>
<a id="pl.161.7"></a><var>161.7</var>deductions taken in error on the invalid salary, with interest determined in the manner <br/>
<a id="pl.161.8"></a><var>161.8</var>provided for a former member under subdivision 7, paragraph (e), clause (2), item (i), <br/>
<a id="pl.161.9"></a><var>161.9</var>and must subtract that amount from the total annuity or benefit overpayment, and the <br/>
<a id="pl.161.10"></a><var>161.10</var>remaining balance of the overpaid annuity or benefit, if any, must be recovered.<br/>
<a id="pl.161.11"></a><var>161.11</var>(b) If the invalid employee deductions plus interest exceed the amount of the <br/>
<a id="pl.161.12"></a><var>161.12</var>overpaid benefits, the balance must be refunded to the person to whom the benefit or <br/>
<a id="pl.161.13"></a><var>161.13</var>annuity is being paid.<br/>
<a id="pl.161.14"></a><var>161.14</var>(c) Any invalid employer contributions reported on the invalid salary must be <br/>
<a id="pl.161.15"></a><var>161.15</var>credited to the employer as provided in subdivision 7, paragraph (e).<br/>
<a id="pl.161.16"></a><var>161.16</var>(d) If a member or former member, who is receiving a retirement annuity or <br/>
<a id="pl.161.17"></a><var>161.17</var>disability benefit for which an overpayment is being recovered, dies before recovery of <br/>
<a id="pl.161.18"></a><var>161.18</var>the overpayment is completed and a joint and survivor optional annuity is payable, the <br/>
<a id="pl.161.19"></a><var>161.19</var>remaining balance of the overpaid annuity or benefit must continue to be recovered from <br/>
<a id="pl.161.20"></a><var>161.20</var>the payment to the optional annuity beneficiary.<br/>
<a id="pl.161.21"></a><var>161.21</var>(e) If the association finds that a refund has been overpaid to a former member, <br/>
<a id="pl.161.22"></a><var>161.22</var>beneficiary or other person, the amount of the overpayment must be recovered for the <br/>
<a id="pl.161.23"></a><var>161.23</var>benefit of the respective retirement fund or account.<br/>
<a id="pl.161.24"></a><var>161.24</var>(f) The board of trustees shall adopt policies directing the period of time and manner <br/>
<a id="pl.161.25"></a><var>161.25</var>for the collection of any overpaid retirement or optional annuity, and survivor or disability <br/>
<a id="pl.161.26"></a><var>161.26</var>benefit, or a refund that the executive director determines must be recovered as provided <br/>
<a id="pl.161.27"></a><var>161.27</var>under this section.<br/>
<a id="pl.161.28"></a><var>161.28</var>    Subd. 7c. <b>Limitation on additional plan coverage.</b> No deductions for any plan <br/>
<a id="pl.161.29"></a><var>161.29</var>under this chapter or chapter 353E may be taken from the salary of a person who is <br/>
<a id="pl.161.30"></a><var>161.30</var>employed by a governmental subdivision under section 
         <statute_ref>353.01, subdivision 6</statute_ref>, and who is <br/>
<a id="pl.161.31"></a><var>161.31</var>receiving disability benefit payments from any plan under this chapter or chapter 353E <br/>
<a id="pl.161.32"></a><var>161.32</var>unless the person waives the right to further disability benefit payments.<br/>
<a id="pl.161.33"></a><var>161.33</var>    Subd. 8. <b>District court reporters; salary deductions.</b> Deductions from the salary <br/>
<a id="pl.161.34"></a><var>161.34</var>of a district court reporter in a judicial district consisting of two or more counties shall <br/>
<a id="pl.161.35"></a><var>161.35</var>must be made by the auditor of the county in which the bond and official oath of such <br/>
<a id="pl.161.36"></a><var>161.36</var>district court reporter are filed, from the portion of salary paid by such county.<br/>
<a id="pl.162.1"></a><var>162.1</var>    Subd. 9. <b>Fee officers; contributions; obligations of employers.</b> Any appointed or <br/>
<a id="pl.162.2"></a><var>162.2</var>elected officer of a governmental subdivision who was or is a "public employee" within <br/>
<a id="pl.162.3"></a><var>162.3</var>the meaning of section 
         <statute_ref>353.01</statute_ref> and was or is a member of the fund general employees <br/>
<a id="pl.162.4"></a><var>162.4</var>retirement plan of the Public Employees Retirement Association and whose salary <br/>
<a id="pl.162.5"></a><var>162.5</var>was or is paid in whole or in part from revenue derived by fees and assessments, shall <br/>
<a id="pl.162.6"></a><var>162.6</var>pay employee contribution in the amount, at the time, and in the manner provided in <br/>
<a id="pl.162.7"></a><var>162.7</var>subdivisions 2 and 4. This subdivision shall does not apply to district court reporters. <br/>
<a id="pl.162.8"></a><var>162.8</var>The employer contribution as provided in subdivision 3, and the additional employer <br/>
<a id="pl.162.9"></a><var>162.9</var>contribution as provided in subdivision 3a,  with respect to such service shall must be <br/>
<a id="pl.162.10"></a><var>162.10</var>paid by the governmental subdivision. This subdivision shall have has both retroactive <br/>
<a id="pl.162.11"></a><var>162.11</var>and prospective application as to all such members; and every employing governmental <br/>
<a id="pl.162.12"></a><var>162.12</var>subdivision is deemed liable, retroactively and prospectively, for all employer and <br/>
<a id="pl.162.13"></a><var>162.13</var>additional employer contributions for every such member of the general employees <br/>
<a id="pl.162.14"></a><var>162.14</var>retirement plan in its employ. Delinquencies under this section shall be are governed <br/>
<a id="pl.162.15"></a><var>162.15</var>in all respects by section 
         <statute_ref>353.28</statute_ref>. <br/>
<a id="pl.162.16"></a><var>162.16</var>    Subd. 10. <b>Employer exclusion reports.</b> The head of a department shall annually <br/>
<a id="pl.162.17"></a><var>162.17</var>furnish the executive director with an exclusion report listing only those employees in <br/>
<a id="pl.162.18"></a><var>162.18</var>potentially PERA-eligible  PERA general employees retirement plan-eligible positions <br/>
<a id="pl.162.19"></a><var>162.19</var>who were not reported as members of the association general employees retirement plan <br/>
<a id="pl.162.20"></a><var>162.20</var>and who worked during the school year for school employees and calendar year for <br/>
<a id="pl.162.21"></a><var>162.21</var>nonschool employees. The department head must certify the accuracy and completeness <br/>
<a id="pl.162.22"></a><var>162.22</var>of the exclusion report to the association. The executive director shall prescribe the <br/>
<a id="pl.162.23"></a><var>162.23</var>manner and forms, including standardized exclusion codes, to be used by a governmental <br/>
<a id="pl.162.24"></a><var>162.24</var>subdivision in preparing and filing exclusion reports. The executive director shall also <br/>
<a id="pl.162.25"></a><var>162.25</var>check the exclusion report to ascertain whether any omissions have been made by a <br/>
<a id="pl.162.26"></a><var>162.26</var>department head in the reporting of new public employees for membership. The executive <br/>
<a id="pl.162.27"></a><var>162.27</var>director may delegate an association employee under section 
         <statute_ref>353.03, subdivision 3a</statute_ref>, <br/>
<a id="pl.162.28"></a><var>162.28</var>paragraph (b), clause (5), to conduct a field audit to review the payroll records of a <br/>
<a id="pl.162.29"></a><var>162.29</var>governmental subdivision. <br/>
<a id="pl.162.30"></a><var>162.30</var>    Subd. 11. <b>Employers; required to furnish requested information.</b> (a) All <br/>
<a id="pl.162.31"></a><var>162.31</var>governmental subdivisions shall furnish promptly such other information relative to the <br/>
<a id="pl.162.32"></a><var>162.32</var>employment status of all employees or former employees, including, but not limited to, <br/>
<a id="pl.162.33"></a><var>162.33</var>payroll abstracts pertaining to all past and present employees, as may be requested by the <br/>
<a id="pl.162.34"></a><var>162.34</var>executive director, including schedules of salaries applicable to various categories of <br/>
<a id="pl.162.35"></a><var>162.35</var>employment.<br/>
<a id="pl.163.1"></a><var>163.1</var>(b) In the event payroll abstract records have been lost or destroyed, for whatever <br/>
<a id="pl.163.2"></a><var>163.2</var>reason or in whatever manner, so that such schedules of salaries cannot be furnished <br/>
<a id="pl.163.3"></a><var>163.3</var>therefrom, the employing governmental subdivision, in lieu thereof, shall furnish to the <br/>
<a id="pl.163.4"></a><var>163.4</var>association an estimate of the earnings of any employee or former employee for any <br/>
<a id="pl.163.5"></a><var>163.5</var>period as may be requested by the executive director. If the association is provided a <br/>
<a id="pl.163.6"></a><var>163.6</var>schedule of estimated earnings, the executive director is authorized to use the same as a <br/>
<a id="pl.163.7"></a><var>163.7</var>basis for making whatever computations might be necessary for determining obligations <br/>
<a id="pl.163.8"></a><var>163.8</var>of the employee and employer to the general employees retirement fund plan, the public <br/>
<a id="pl.163.9"></a><var>163.9</var>employees police and fire retirement plan, or the local government correctional employees <br/>
<a id="pl.163.10"></a><var>163.10</var>retirement plan. If estimates are not furnished by the employer at the request of the <br/>
<a id="pl.163.11"></a><var>163.11</var>executive director, the executive director may estimate the obligations of the employee <br/>
<a id="pl.163.12"></a><var>163.12</var>and employer to the general employees retirement fund, the public employees police and <br/>
<a id="pl.163.13"></a><var>163.13</var>fire retirement plan, or the local government correctional employees retirement plan based <br/>
<a id="pl.163.14"></a><var>163.14</var>upon those records that are in its possession.<br/>
<a id="pl.163.15"></a><var>163.15</var>    Subd. 12. <b>Omitted salary deductions; obligations.</b> (a) In the case of omission <br/>
<a id="pl.163.16"></a><var>163.16</var>of required deductions for the general employees retirement plan, the public employees <br/>
<a id="pl.163.17"></a><var>163.17</var>police and fire retirement plan, or the local government correctional employees retirement <br/>
<a id="pl.163.18"></a><var>163.18</var>plan from the salary of an employee, the department head or designee shall immediately, <br/>
<a id="pl.163.19"></a><var>163.19</var>upon discovery, report the employee for membership and deduct the employee deductions <br/>
<a id="pl.163.20"></a><var>163.20</var>under subdivision 4 during the current pay period or during the pay period immediately <br/>
<a id="pl.163.21"></a><var>163.21</var>following the discovery of the omission. Payment for the omitted obligations may only be <br/>
<a id="pl.163.22"></a><var>163.22</var>made in accordance with reporting procedures and methods established by the executive <br/>
<a id="pl.163.23"></a><var>163.23</var>director.<br/>
<a id="pl.163.24"></a><var>163.24</var>(b) When the entire omission period of an employee does not exceed 60 days, the <br/>
<a id="pl.163.25"></a><var>163.25</var>governmental subdivision may report and submit payment of the omitted employee <br/>
<a id="pl.163.26"></a><var>163.26</var>deductions and the omitted employer contributions through the reporting processes under <br/>
<a id="pl.163.27"></a><var>163.27</var>subdivision 4.<br/>
<a id="pl.163.28"></a><var>163.28</var>(c) When the omission period of an employee exceeds 60 days, the governmental <br/>
<a id="pl.163.29"></a><var>163.29</var>subdivision shall furnish to the association sufficient data and documentation upon which <br/>
<a id="pl.163.30"></a><var>163.30</var>the obligation for omitted employee and employer contributions can be calculated. <br/>
<a id="pl.163.31"></a><var>163.31</var>The omitted employee deductions must be deducted from the employee's subsequent <br/>
<a id="pl.163.32"></a><var>163.32</var>salary payment or payments and remitted to the association for deposit in the applicable <br/>
<a id="pl.163.33"></a><var>163.33</var>retirement fund. The employee shall pay omitted employee deductions due for the 60 <br/>
<a id="pl.163.34"></a><var>163.34</var>days prior to the end of the last pay period in the omission period during which salary <br/>
<a id="pl.163.35"></a><var>163.35</var>was earned. The employer shall pay any remaining omitted employee deductions and any <br/>
<a id="pl.163.36"></a><var>163.36</var>omitted employer contributions, plus cumulative interest at an annual rate of 8.5 percent <br/>
<a id="pl.164.1"></a><var>164.1</var>compounded annually, from the date or dates each omitted employee contribution was <br/>
<a id="pl.164.2"></a><var>164.2</var>first payable.<br/>
<a id="pl.164.3"></a><var>164.3</var>(d) An employer shall not hold an employee liable for omitted employee deductions <br/>
<a id="pl.164.4"></a><var>164.4</var>beyond the pay period dates under paragraph (c), nor attempt to recover from the employee <br/>
<a id="pl.164.5"></a><var>164.5</var>those employee deductions paid by the employer on behalf of the employee. Omitted <br/>
<a id="pl.164.6"></a><var>164.6</var>deductions due under paragraph (c) which are not paid by the employee constitute a <br/>
<a id="pl.164.7"></a><var>164.7</var>liability of the employer that failed to deduct the omitted deductions from the employee's <br/>
<a id="pl.164.8"></a><var>164.8</var>salary. The employer shall make payment with interest at an annual rate of 8.5 percent <br/>
<a id="pl.164.9"></a><var>164.9</var>compounded annually. Omitted employee deductions are no longer due if an employee <br/>
<a id="pl.164.10"></a><var>164.10</var>terminates public service before making payment of omitted employee deductions to <br/>
<a id="pl.164.11"></a><var>164.11</var>the association, but the employer remains liable to pay omitted employer contributions <br/>
<a id="pl.164.12"></a><var>164.12</var>plus interest at an annual rate of 8.5 percent compounded annually from the date the <br/>
<a id="pl.164.13"></a><var>164.13</var>contributions were first payable.<br/>
<a id="pl.164.14"></a><var>164.14</var>(e) The association may not commence action for the recovery of omitted employee <br/>
<a id="pl.164.15"></a><var>164.15</var>deductions and employer contributions after the expiration of three calendar years after <br/>
<a id="pl.164.16"></a><var>164.16</var>the calendar year in which the contributions and deductions were omitted. Except as <br/>
<a id="pl.164.17"></a><var>164.17</var>provided under paragraph (b), no payment may be made or accepted unless the association <br/>
<a id="pl.164.18"></a><var>164.18</var>has already commenced action for recovery of omitted deductions. An action for recovery <br/>
<a id="pl.164.19"></a><var>164.19</var>commences on the date of the mailing of any written correspondence from the association <br/>
<a id="pl.164.20"></a><var>164.20</var>requesting information from the governmental subdivision upon which to determine <br/>
<a id="pl.164.21"></a><var>164.21</var>whether or not omitted deductions occurred.<br/>
<a id="pl.164.22"></a><var>164.22</var>    Subd. 12a. <b>Terminated employees: omitted deductions.</b> A terminated employee <br/>
<a id="pl.164.23"></a><var>164.23</var>who was a member of the general employees retirement plan of the Public Employees <br/>
<a id="pl.164.24"></a><var>164.24</var>Retirement Association, the public employees police and fire retirement plan, or the local <br/>
<a id="pl.164.25"></a><var>164.25</var>government correctional employees retirement plan and who has a period of employment <br/>
<a id="pl.164.26"></a><var>164.26</var>in which previously omitted employer contributions were made under subdivision 12 <br/>
<a id="pl.164.27"></a><var>164.27</var>but for whom no, or only partial, omitted employee contributions have been made, or <br/>
<a id="pl.164.28"></a><var>164.28</var>a member who had prior coverage in the association for which previously omitted <br/>
<a id="pl.164.29"></a><var>164.29</var>employer contributions were made under subdivision 12 but who terminated service <br/>
<a id="pl.164.30"></a><var>164.30</var>before required omitted employee deductions could be withheld from salary, may pay the <br/>
<a id="pl.164.31"></a><var>164.31</var>omitted employee deductions for the period on which omitted employer contributions <br/>
<a id="pl.164.32"></a><var>164.32</var>were previously paid plus interest at an annual rate of 8.5 percent compounded annually. <br/>
<a id="pl.164.33"></a><var>164.33</var>A terminated employee may pay the omitted employee deductions plus interest within six <br/>
<a id="pl.164.34"></a><var>164.34</var>months of an initial notification from the association of eligibility to pay those omitted <br/>
<a id="pl.164.35"></a><var>164.35</var>deductions. If a terminated employee is reemployed in a position covered under a public <br/>
<a id="pl.164.36"></a><var>164.36</var>pension fund under section 
         <statute_ref>356.30, subdivision 3</statute_ref>, and elects to pay omitted employee <br/>
<a id="pl.165.1"></a><var>165.1</var>deductions, payment must be made no later than six months after a subsequent termination <br/>
<a id="pl.165.2"></a><var>165.2</var>of public service. <br/>
<a id="pl.165.3"></a><var>165.3</var>    Subd. 12b. <b>Terminated employees: immediate eligibility.</b> If deductions were <br/>
<a id="pl.165.4"></a><var>165.4</var>omitted from salary adjustments or final salary of a terminated employee who was a <br/>
<a id="pl.165.5"></a><var>165.5</var>member of the general employees retirement plan, the public employees police and fire <br/>
<a id="pl.165.6"></a><var>165.6</var>retirement plan, or the local government correctional employees retirement plan and who <br/>
<a id="pl.165.7"></a><var>165.7</var>is immediately eligible to draw a monthly benefit, the employer shall pay the omitted <br/>
<a id="pl.165.8"></a><var>165.8</var>employer and employer additional contributions plus interest on both the employer and <br/>
<a id="pl.165.9"></a><var>165.9</var>employee amounts due at an annual rate of 8.5 percent compounded annually. The <br/>
<a id="pl.165.10"></a><var>165.10</var>employee shall pay the employee deductions within six months of an initial notification <br/>
<a id="pl.165.11"></a><var>165.11</var>from the association of eligibility to pay omitted deductions or the employee forfeits <br/>
<a id="pl.165.12"></a><var>165.12</var>the right to make the payment.<br/>
<a id="pl.165.13"></a><var>165.13</var>    Subd. 13. <b>Certain warrants canceled.</b> A warrant payable from the general <br/>
<a id="pl.165.14"></a><var>165.14</var>employees retirement fund, the public employees police and fire retirement fund, or the <br/>
<a id="pl.165.15"></a><var>165.15</var>local government correctional retirement fund remaining unpaid for a period of six <br/>
<a id="pl.165.16"></a><var>165.16</var>months must be canceled into the applicable retirement fund and not canceled into the <br/>
<a id="pl.165.17"></a><var>165.17</var>state's general fund.<br/>
<a id="pl.165.18"></a><var>165.18</var>    Subd. 14. <b>Periods before initial coverage date.</b> (a) If an entity is determined to <br/>
<a id="pl.165.19"></a><var>165.19</var>be a governmental subdivision due to receipt of a written notice of eligibility from the <br/>
<a id="pl.165.20"></a><var>165.20</var>association with respect to the general employees retirement plan, the public employees <br/>
<a id="pl.165.21"></a><var>165.21</var>police and fire retirement plan, or the local government correctional retirement plan, that <br/>
<a id="pl.165.22"></a><var>165.22</var>employer and its employees are subject to the requirements of subdivision 12, effective <br/>
<a id="pl.165.23"></a><var>165.23</var>retroactively to the date that the executive director of the association determines that <br/>
<a id="pl.165.24"></a><var>165.24</var>the entity first met the definition of a governmental subdivision, if that date predates <br/>
<a id="pl.165.25"></a><var>165.25</var>the notice of eligibility.<br/>
<a id="pl.165.26"></a><var>165.26</var>    (b) If the retroactive time period under paragraph (a) exceeds three years, an <br/>
<a id="pl.165.27"></a><var>165.27</var>employee is authorized to purchase service credit in the applicable Public Employees <br/>
<a id="pl.165.28"></a><var>165.28</var>Retirement Association plan for the portion of the period in excess of three years, by <br/>
<a id="pl.165.29"></a><var>165.29</var>making payment under section 
         <statute_ref>356.551</statute_ref>. Notwithstanding any provision of section <br/>
<statute_ref><a id="pl.165.30"></a><var>165.30</var>356.551, subdivision 2
         </statute_ref>, to the contrary, regarding time limits on purchases, payment of a <br/>
<a id="pl.165.31"></a><var>165.31</var>service credit purchase amount may be made anytime before the termination of public <br/>
<a id="pl.165.32"></a><var>165.32</var>service.<br/>
<a id="pl.165.33"></a><var>165.33</var>    (c) This subdivision does not apply if the applicable employment under paragraph <br/>
<a id="pl.165.34"></a><var>165.34</var>(a) included coverage by any public or private defined benefit or defined contribution <br/>
<a id="pl.165.35"></a><var>165.35</var>retirement plan, other than a volunteer firefighters relief association. If this paragraph <br/>
<a id="pl.166.1"></a><var>166.1</var>applies, an individual is prohibited from purchasing service credit from a Public Employees <br/>
<a id="pl.166.2"></a><var>166.2</var>Retirement Association plan for any period or periods specified in paragraph (a).<br/>
<br/>
<a id="bill.12.8.0"></a><a id="pl.166.3"></a><var>166.3</var>    Sec. 8. Minnesota Statutes 2008, section 353.34, subdivision 1, is amended to read:<br/>
<a id="pl.166.4"></a><var>166.4</var>    Subdivision 1. <b>Refund or deferred annuity.</b> (a) A former member is entitled <br/>
<a id="pl.166.5"></a><var>166.5</var>to a refund of accumulated employee deductions under subdivision 2, or to a deferred <br/>
<a id="pl.166.6"></a><var>166.6</var>annuity under subdivision 3. Application for a refund may not be made before the date of <br/>
<a id="pl.166.7"></a><var>166.7</var>termination of public service. Except as specified in paragraph (b), a refund must be paid <br/>
<a id="pl.166.8"></a><var>166.8</var>within 120 days following receipt of the application unless the applicant has again become <br/>
<a id="pl.166.9"></a><var>166.9</var>a public employee required to be covered by the association.<br/>
<a id="pl.166.10"></a><var>166.10</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.166.11"></a><var>166.11</var>a refund is not payable before termination of service under 
         <statute_ref>section 353.01, subdivision 11a</statute_ref>. <br/>
<a id="pl.166.12"></a><var>166.12</var>(c) An individual who terminates public service covered by the Public Employees <br/>
<a id="pl.166.13"></a><var>166.13</var>Retirement Association general employees retirement plan, the MERF division, the <br/>
<a id="pl.166.14"></a><var>166.14</var>Public Employees Retirement Association police and fire retirement plan, or the public <br/>
<a id="pl.166.15"></a><var>166.15</var>employees local government corrections service retirement plan, and who is employed <br/>
<a id="pl.166.16"></a><var>166.16</var>by a different employer and who becomes an active member covered by one of the other <br/>
<a id="pl.166.17"></a><var>166.17</var>two plans, may receive a refund of employee contributions plus six percent interest <br/>
<a id="pl.166.18"></a><var>166.18</var>compounded annually from the plan from which the member terminated service.<br/>
<br/>
<a id="bill.12.9.0"></a><a id="pl.166.19"></a><var>166.19</var>    Sec. 9. Minnesota Statutes 2008, section 353.34, subdivision 6, is amended to read:<br/>
<a id="pl.166.20"></a><var>166.20</var>    Subd. 6. <b>Additions to fund.</b> The board of trustees may credit to the general <br/>
<a id="pl.166.21"></a><var>166.21</var>employees retirement fund any moneys money received in the form of contributions, <br/>
<a id="pl.166.22"></a><var>166.22</var>donations, gifts, appropriations, bequests, or otherwise.<br/>
<br/>
<a id="bill.12.10.0"></a><a id="pl.166.23"></a><var>166.23</var>    Sec. 10. Minnesota Statutes 2008, section 353.37, subdivision 1, is amended to read:<br/>
<a id="pl.166.24"></a><var>166.24</var>    Subdivision 1. <b>Salary maximums.</b> (a) The annuity of a person otherwise eligible <br/>
<a id="pl.166.25"></a><var>166.25</var>for an annuity under this chapter from the general employees retirement plan of the Public <br/>
<a id="pl.166.26"></a><var>166.26</var>Employees Retirement Association, the public employees police and fire retirement plan, <br/>
<a id="pl.166.27"></a><var>166.27</var>or the local government correctional employees retirement plan must be suspended under <br/>
<a id="pl.166.28"></a><var>166.28</var>subdivision 2 or reduced under subdivision 3, whichever results in the higher annual <br/>
<a id="pl.166.29"></a><var>166.29</var>annuity amount, if the person reenters public service as a nonelective employee of a <br/>
<a id="pl.166.30"></a><var>166.30</var>governmental subdivision in a position covered by this chapter or returns to work as an <br/>
<a id="pl.166.31"></a><var>166.31</var>employee of a labor organization that represents public employees who are association <br/>
<a id="pl.166.32"></a><var>166.32</var>members under this chapter and salary for the reemployment service exceeds the annual <br/>
<a id="pl.166.33"></a><var>166.33</var>maximum earnings allowable for that age for the continued receipt of full benefit amounts <br/>
<a id="pl.167.1"></a><var>167.1</var>monthly under the federal Old Age, Survivors and Disability Insurance Program as set by <br/>
<a id="pl.167.2"></a><var>167.2</var>the secretary of health and human services under United States Code, title 42, section 403, <br/>
<a id="pl.167.3"></a><var>167.3</var>in any calendar year. If the person has not yet reached the minimum age for the receipt <br/>
<a id="pl.167.4"></a><var>167.4</var>of Social Security benefits, the maximum salary for the person is equal to the annual <br/>
<a id="pl.167.5"></a><var>167.5</var>maximum earnings allowable for the minimum age for the receipt of Social Security <br/>
<a id="pl.167.6"></a><var>167.6</var>benefits.<br/>
<a id="pl.167.7"></a><var>167.7</var>(b) The provisions of paragraph (a) do not apply to the members of the MERF <br/>
<a id="pl.167.8"></a><var>167.8</var>division.<br/>
<br/>
<a id="bill.12.11.0"></a><a id="pl.167.9"></a><var>167.9</var>    Sec. 11. Minnesota Statutes 2008, section 353.37, subdivision 2, is amended to read:<br/>
<a id="pl.167.10"></a><var>167.10</var>    Subd. 2. <b>Suspension of annuity.</b> (a) The association shall suspend the annuity on <br/>
<a id="pl.167.11"></a><var>167.11</var>the first of the month after the month in which the salary of the reemployed annuitant <br/>
<a id="pl.167.12"></a><var>167.12</var>described in subdivision 1, paragraph (a), exceeds the maximums set in subdivision 1, <br/>
<a id="pl.167.13"></a><var>167.13</var>paragraph (a), based only on those months in which the annuitant is actually employed <br/>
<a id="pl.167.14"></a><var>167.14</var>in nonelective public service in a position covered under this chapter or employment <br/>
<a id="pl.167.15"></a><var>167.15</var>with a labor organization that represents public employees who are association members <br/>
<a id="pl.167.16"></a><var>167.16</var>of a retirement plan under this chapter or chapter 353E. <br/>
<a id="pl.167.17"></a><var>167.17</var>(b) An annuitant who is elected to public office after retirement may hold that office <br/>
<a id="pl.167.18"></a><var>167.18</var>and receive an annuity otherwise payable from a retirement plan administered by the <br/>
<a id="pl.167.19"></a><var>167.19</var>association.<br/>
<br/>
<a id="bill.12.12.0"></a><a id="pl.167.20"></a><var>167.20</var>    Sec. 12. Minnesota Statutes 2008, section 353.37, subdivision 3, is amended to read:<br/>
<a id="pl.167.21"></a><var>167.21</var>    Subd. 3. <b>Reduction of annuity.</b> (a) The association shall reduce the amount <br/>
<a id="pl.167.22"></a><var>167.22</var>of the annuity of a person who has not reached the retirement age by one-half of the <br/>
<a id="pl.167.23"></a><var>167.23</var>amount in excess of the applicable reemployment income maximum under subdivision <br/>
<a id="pl.167.24"></a><var>167.24</var>1, paragraph (a).<br/>
<a id="pl.167.25"></a><var>167.25</var>(b) There is no reduction upon reemployment, regardless of income, for a person <br/>
<a id="pl.167.26"></a><var>167.26</var>who has reached the retirement age.<br/>
<br/>
<a id="bill.12.13.0"></a><a id="pl.167.27"></a><var>167.27</var>    Sec. 13. Minnesota Statutes 2008, section 353.37, subdivision 4, is amended to read:<br/>
<a id="pl.167.28"></a><var>167.28</var>    Subd. 4. <b>Resumption of annuity.</b> The association shall resume paying a full <br/>
<a id="pl.167.29"></a><var>167.29</var>annuity to the reemployed annuitant described in subdivision 1, paragraph (a), at the <br/>
<a id="pl.167.30"></a><var>167.30</var>start of each calendar year until the salary exceeds the maximums under subdivision 1, <br/>
<a id="pl.167.31"></a><var>167.31</var>paragraph (a), or on the first of the month following the termination of the employment <br/>
<a id="pl.167.32"></a><var>167.32</var>which resulted in the suspension of the annuity. The executive director may adopt policies <br/>
<a id="pl.167.33"></a><var>167.33</var>regarding the suspension and reduction of annuities under this section.<br/>
<br/>
<a id="bill.12.14.0"></a><a id="pl.168.1"></a><var>168.1</var>    Sec. 14. Minnesota Statutes 2008, section 353.37, subdivision 5, is amended to read:<br/>
<a id="pl.168.2"></a><var>168.2</var>    Subd. 5. <b>Effect on annuity.</b> Except as provided under this section, public service <br/>
<a id="pl.168.3"></a><var>168.3</var>performed by an annuitant described in subdivision 1, paragraph (a), subsequent to <br/>
<a id="pl.168.4"></a><var>168.4</var>retirement under this chapter from the general employees retirement plan, the public <br/>
<a id="pl.168.5"></a><var>168.5</var>employees police and fire retirement plan, or the local government correctional employees <br/>
<a id="pl.168.6"></a><var>168.6</var>retirement plan does not increase or decrease the amount of an annuity. The annuitant shall <br/>
<a id="pl.168.7"></a><var>168.7</var>not make any further contributions to the association's a defined benefit plan administered <br/>
<a id="pl.168.8"></a><var>168.8</var>by the association by reason of this subsequent public service.<br/>
<br/>
<a id="bill.12.15.0"></a><a id="pl.168.9"></a><var>168.9</var>    Sec. 15. Minnesota Statutes 2008, section 353.46, subdivision 2, is amended to read:<br/>
<a id="pl.168.10"></a><var>168.10</var>    Subd. 2. <b>Rights of deferred annuitant.</b> The right entitlement of a deferred <br/>
<a id="pl.168.11"></a><var>168.11</var>annuitant or other former member of the general employees retirement plan of the <br/>
<a id="pl.168.12"></a><var>168.12</var>Public Employees Retirement Association, the Minneapolis Employees Retirement Fund <br/>
<a id="pl.168.13"></a><var>168.13</var>division, the public employees police and fire retirement plan, or the local government <br/>
<a id="pl.168.14"></a><var>168.14</var>correctional employees retirement plan to receive an annuity under the law in effect at the <br/>
<a id="pl.168.15"></a><var>168.15</var>time such the person terminated public service is herein preserved; provided, however,. <br/>
<a id="pl.168.16"></a><var>168.16</var>The provisions of section 
         <statute_ref>353.71, subdivision 2</statute_ref>, as amended by Laws 1973, chapter 753 <br/>
<a id="pl.168.17"></a><var>168.17</var>shall, apply to a deferred annuitant or other former member who first begins receiving an <br/>
<a id="pl.168.18"></a><var>168.18</var>annuity after July 1, 1973.  <br/>
<br/>
<a id="bill.12.16.0"></a><a id="pl.168.19"></a><var>168.19</var>    Sec. 16. Minnesota Statutes 2008, section 353.46, subdivision 6, is amended to read:<br/>
<a id="pl.168.20"></a><var>168.20</var>    Subd. 6. <b>Computation of benefits for certain coordinated members.</b> Any <br/>
<a id="pl.168.21"></a><var>168.21</var>coordinated member of the general employees retirement plan of the Public Employees <br/>
<a id="pl.168.22"></a><var>168.22</var>Retirement Association who prior to, before July 1, 1979, was a member of the former <br/>
<a id="pl.168.23"></a><var>168.23</var>coordinated program of the former Minneapolis Municipal Employees Retirement <br/>
<a id="pl.168.24"></a><var>168.24</var>Fund and who prior to, before July 1, 1978, was a member of the basic program of the <br/>
<a id="pl.168.25"></a><var>168.25</var>Minneapolis Municipal Employees Retirement Fund shall:<br/>
<a id="pl.168.26"></a><var>168.26</var>(1) be is entitled to receive a retirement annuity when otherwise qualified, the <br/>
<a id="pl.168.27"></a><var>168.27</var>calculation of which shall must utilize the formula accrual rates specified in section <br/>
<statute_ref><a id="pl.168.28"></a><var>168.28</var>422A.15, subdivision 1
         </statute_ref>, for that portion of credited service which was rendered prior to <br/>
<a id="pl.168.29"></a><var>168.29</var>before July 1, 1978, and the formula accrual rates specified in section 
         <statute_ref>353.29, subdivision <br/>
<a id="pl.168.30"></a><var>168.30</var>3
         </statute_ref>, for the remainder of credited service, both applied to the average salary as specified <br/>
<a id="pl.168.31"></a><var>168.31</var>in section 
         <statute_ref>353.29, subdivision 2</statute_ref> 353.01, subdivision 17a. The formula accrual rates to <br/>
<a id="pl.168.32"></a><var>168.32</var>be used in calculating the retirement annuity shall must recognize the service after July <br/>
<a id="pl.168.33"></a><var>168.33</var>1, 1978, as a member of the former coordinated program of the former Minneapolis <br/>
<a id="pl.168.34"></a><var>168.34</var>Municipal Employees Retirement Fund and after July 1, 1979, as a member of the <br/>
<a id="pl.169.1"></a><var>169.1</var>general employees retirement plan of the Public Employees Retirement Association as <br/>
<a id="pl.169.2"></a><var>169.2</var>a continuation of service rendered prior to before July 1, 1978. The annuity amount <br/>
<a id="pl.169.3"></a><var>169.3</var>attributable to service as a member of the basic program of the former Minneapolis <br/>
<a id="pl.169.4"></a><var>169.4</var>Municipal Employees Retirement Fund shall be is payable by from the Minneapolis <br/>
<a id="pl.169.5"></a><var>169.5</var>Employees Retirement Fund MERF division and the annuity amount attributable to all <br/>
<a id="pl.169.6"></a><var>169.6</var>other service shall be is payable by from the general employees retirement fund of the <br/>
<a id="pl.169.7"></a><var>169.7</var>Public Employees Retirement Association;  .<br/>
<a id="pl.169.8"></a><var>169.8</var>(2) retain eligibility when otherwise qualified for a disability benefit from the <br/>
<a id="pl.169.9"></a><var>169.9</var>Minneapolis Employees Retirement Fund until July 1, 1982, notwithstanding coverage <br/>
<a id="pl.169.10"></a><var>169.10</var>by the Public Employees Retirement Association, if the member has or would, without <br/>
<a id="pl.169.11"></a><var>169.11</var>the transfer of retirement coverage from the basic program of the Minneapolis Municipal <br/>
<a id="pl.169.12"></a><var>169.12</var>Employees Retirement Fund to the coordinated program of the Minneapolis Municipal <br/>
<a id="pl.169.13"></a><var>169.13</var>Employees Retirement Fund or from the coordinated program of the Minneapolis <br/>
<a id="pl.169.14"></a><var>169.14</var>Municipal Employees Retirement Fund to the public employees retirement fund, have <br/>
<a id="pl.169.15"></a><var>169.15</var>sufficient credited service prior to January 1, 1983, to meet the minimum service <br/>
<a id="pl.169.16"></a><var>169.16</var>requirements for a disability benefit pursuant to section 
<statute_ref>422A.18</statute_ref>. The disability benefit <br/>
<a id="pl.169.17"></a><var>169.17</var>amount attributable to service as a member of the basic program of the Minneapolis <br/>
<a id="pl.169.18"></a><var>169.18</var>Municipal Employees Retirement Fund shall be payable by the Minneapolis Employees <br/>
<a id="pl.169.19"></a><var>169.19</var>Retirement Fund and the disability benefit amount attributable to all other service shall be <br/>
<a id="pl.169.20"></a><var>169.20</var>payable by the Public Employees Retirement Association.  <br/>
<br/>
<a id="bill.12.17.0"></a><a id="pl.169.21"></a><var>169.21</var>    Sec. 17. <b>[353.50] MERF CONSOLIDATION ACCOUNT; ESTABLISHMENT </b><br/>
<a id="pl.169.22"></a><var>169.22</var><b>AND OPERATION.</b><br/>
<a id="pl.169.23"></a><var>169.23</var>    Subdivision 1. <b>Administrative consolidation.</b> (a) Notwithstanding any provision <br/>
<a id="pl.169.24"></a><var>169.24</var>of this chapter or chapter 422A to the contrary, the administration of the Minneapolis <br/>
<a id="pl.169.25"></a><var>169.25</var>Employees Retirement Fund as the MERF division is transferred to the Public Employees <br/>
<a id="pl.169.26"></a><var>169.26</var>Retirement Association board of trustees. The assets, service credit, and benefit liabilities <br/>
<a id="pl.169.27"></a><var>169.27</var>of the Minneapolis Employees Retirement Fund transfer to the MERF division account <br/>
<a id="pl.169.28"></a><var>169.28</var>within the general employees retirement plan of the Public Employees Retirement <br/>
<a id="pl.169.29"></a><var>169.29</var>Association established by section 353.27, subdivision 1a, on July 1, 2010.<br/>
<a id="pl.169.30"></a><var>169.30</var>(b) The creation of the MERF division must not be construed to alter the Social <br/>
<a id="pl.169.31"></a><var>169.31</var>Security or Medicare coverage of any member of the former Minneapolis Employees <br/>
<a id="pl.169.32"></a><var>169.32</var>Retirement Fund on June 29, 2010, while the person is employed in a position covered <br/>
<a id="pl.169.33"></a><var>169.33</var>under the MERF division of the Public Employees Retirement Association.<br/>
<a id="pl.169.34"></a><var>169.34</var>    Subd. 2. <b>Membership transfer.</b> Effective June 30, 2010, the active, inactive, and <br/>
<a id="pl.169.35"></a><var>169.35</var>retired members of the Minneapolis Employees Retirement Fund are transferred to the <br/>
<a id="pl.170.1"></a><var>170.1</var>MERF division administered by the Public Employees Retirement Association and are no <br/>
<a id="pl.170.2"></a><var>170.2</var>longer members of the Minneapolis Employees Retirement Fund.<br/>
<a id="pl.170.3"></a><var>170.3</var>    Subd. 3. <b>Service credit and benefit liability transfer.</b> (a) All allowable service <br/>
<a id="pl.170.4"></a><var>170.4</var>credit and salary credit of the members of the  Minneapolis Employees Retirement Fund <br/>
<a id="pl.170.5"></a><var>170.5</var>as specified in the records of the Minneapolis Employees Retirement Fund through June <br/>
<a id="pl.170.6"></a><var>170.6</var>30, 2010, are transferred to the MERF division of the Public Employees Retirement <br/>
<a id="pl.170.7"></a><var>170.7</var>Association and are credited by the MERF division. Annuities or benefits of persons <br/>
<a id="pl.170.8"></a><var>170.8</var>who are active members of the former Minneapolis Employees Retirement Fund on <br/>
<a id="pl.170.9"></a><var>170.9</var>June 30, 2010, must be calculated under Minnesota Statutes 2008, sections 422A.11; <br/>
<a id="pl.170.10"></a><var>170.10</var>422A.12; 422A.13; 422A.14; 422A.15; 422A.151; 422A.155; 422A.156; 422A.16; <br/>
<a id="pl.170.11"></a><var>170.11</var>422A.17; 422A.18; 422A.19; 422A.20; and 422A.23, but are only eligible for automatic <br/>
<a id="pl.170.12"></a><var>170.12</var>postretirement adjustments after December 31, 2010, under section 356.415.<br/>
<a id="pl.170.13"></a><var>170.13</var>(b) The liability for the payment of annuities and benefits of the Minneapolis <br/>
<a id="pl.170.14"></a><var>170.14</var>Employees Retirement Fund retirees and benefit recipients as specified in the records <br/>
<a id="pl.170.15"></a><var>170.15</var>of the Minneapolis Employees Retirement Fund on June 29, 2010, is transferred to the <br/>
<a id="pl.170.16"></a><var>170.16</var>MERF division of the Public Employees Retirement Association on June 30, 2010.<br/>
<a id="pl.170.17"></a><var>170.17</var>    Subd. 4. <b>Records transfer.</b> On June 30, 2010, the executive director of the <br/>
<a id="pl.170.18"></a><var>170.18</var>Minneapolis Employees Retirement Fund shall transfer all records and documents relating <br/>
<a id="pl.170.19"></a><var>170.19</var>to the Minneapolis Employees Retirement Fund and its benefit plan to the executive <br/>
<a id="pl.170.20"></a><var>170.20</var>director of the Public Employees Retirement Association. To the extent possible, original <br/>
<a id="pl.170.21"></a><var>170.21</var>copies of all records and documents must be transferred.<br/>
<a id="pl.170.22"></a><var>170.22</var>    Subd. 5. <b>Transfer of title to assets.</b> On June 30, 2010, legal title to the assets of <br/>
<a id="pl.170.23"></a><var>170.23</var>the Minneapolis Employees Retirement Fund transfers to the State Board of Investment <br/>
<a id="pl.170.24"></a><var>170.24</var>and the assets must be invested under section 11A.14, as assets of the MERF division of <br/>
<a id="pl.170.25"></a><var>170.25</var>the Public Employees Retirement Association.  The MERF division is the successor in <br/>
<a id="pl.170.26"></a><var>170.26</var>interest to all claims that the former Minneapolis Employees Retirement Fund may have <br/>
<a id="pl.170.27"></a><var>170.27</var>or may assert against any person and is the successor in interest to all claims which could <br/>
<a id="pl.170.28"></a><var>170.28</var>have been asserted against the former Minneapolis Employees Retirement Fund, but the <br/>
<a id="pl.170.29"></a><var>170.29</var>MERF division is not liable for any claim against the former Minneapolis Employees <br/>
<a id="pl.170.30"></a><var>170.30</var>Retirement Fund, its former governing board, or its former administrative staff acting in a <br/>
<a id="pl.170.31"></a><var>170.31</var>fiduciary capacity under chapter 356A or under common law, which is founded upon a <br/>
<a id="pl.170.32"></a><var>170.32</var>claim of breach of fiduciary duty, but where the act or acts constituting the claimed breach <br/>
<a id="pl.170.33"></a><var>170.33</var>were not undertaken in good faith, the Public Employees Retirement Association may <br/>
<a id="pl.170.34"></a><var>170.34</var>assert any applicable defense to any claim in any judicial or administrative proceeding <br/>
<a id="pl.170.35"></a><var>170.35</var>that the former Minneapolis Employees Retirement Fund, its former board, or its <br/>
<a id="pl.170.36"></a><var>170.36</var>former administrative staff would otherwise have been entitled to assert, and the Public <br/>
<a id="pl.171.1"></a><var>171.1</var>Employees Retirement Association may assert any applicable defense that it has in its <br/>
<a id="pl.171.2"></a><var>171.2</var>capacity as a statewide agency.<br/>
<a id="pl.171.3"></a><var>171.3</var>    Subd. 6. <b>Benefits.</b> (a) The annuities and benefits of, or attributable to, retired, <br/>
<a id="pl.171.4"></a><var>171.4</var>disabled, deferred, or inactive Minneapolis Employees Retirement Fund members <br/>
<a id="pl.171.5"></a><var>171.5</var>with that status as of June 30, 2010, with the exception of post-December 31, 2010, <br/>
<a id="pl.171.6"></a><var>171.6</var>postretirement adjustments, which are governed by paragraph (b), as calculated under <br/>
<a id="pl.171.7"></a><var>171.7</var>Minnesota Statutes 2008, sections 422A.11; 422A.12; 422A.13; 422A.14; 422A.15; <br/>
<a id="pl.171.8"></a><var>171.8</var>422A.151; 422A.155; 422A.156; 422A.16; 422A.17; 422A.18; 422A.19; 422A.20; and <br/>
<a id="pl.171.9"></a><var>171.9</var>422A.23, continue in force after the administrative consolidation under this article.<br/>
<a id="pl.171.10"></a><var>171.10</var>(b) After December 31, 2010, annuities and benefits from the MERF division are <br/>
<a id="pl.171.11"></a><var>171.11</var>eligible for annual automatic postretirement adjustments solely under section 356.415.<br/>
<a id="pl.171.12"></a><var>171.12</var>    Subd. 7. <b>MERF division account contributions.</b> (a) After June 30, 2010, the <br/>
<a id="pl.171.13"></a><var>171.13</var>member and employer contributions to the MERF division account are governed by this <br/>
<a id="pl.171.14"></a><var>171.14</var>subdivision.<br/>
<a id="pl.171.15"></a><var>171.15</var>(b) An active member covered by the MERF division must make an employee <br/>
<a id="pl.171.16"></a><var>171.16</var>contribution of 9.75 percent of the total salary of the member as defined in section 353.01, <br/>
<a id="pl.171.17"></a><var>171.17</var>subdivision 10. The employee contribution must be made by payroll deduction by the <br/>
<a id="pl.171.18"></a><var>171.18</var>member's employing unit under section 353.27, subdivision 4, and is subject to the <br/>
<a id="pl.171.19"></a><var>171.19</var>provisions of section 353.27, subdivisions 7, 7a, 7b, 12, 12a, and 12b.<br/>
<a id="pl.171.20"></a><var>171.20</var>(c) The employer regular contribution to the MERF division account with respect <br/>
<a id="pl.171.21"></a><var>171.21</var>to an active MERF division member is 9.75 percent of the total salary of the member as <br/>
<a id="pl.171.22"></a><var>171.22</var>defined in section 353.01, subdivision 10.<br/>
<a id="pl.171.23"></a><var>171.23</var>(d) The employer additional contribution to the MERF division account with respect <br/>
<a id="pl.171.24"></a><var>171.24</var>to an active member of the MERF division is 2.68 percent of the total salary of the member <br/>
<a id="pl.171.25"></a><var>171.25</var>as defined in section 353.01, subdivision 10, plus the employing unit's share of $3,900,000 <br/>
<a id="pl.171.26"></a><var>171.26</var>that the employing unit paid or is payable to the former Minneapolis Employees <br/>
<a id="pl.171.27"></a><var>171.27</var>Retirement Fund under Minnesota Statutes 2008, section 422A.101, subdivision 1a, 2, <br/>
<a id="pl.171.28"></a><var>171.28</var>or 2a, during calendar year 2009, as was certified by the former executive director of the <br/>
<a id="pl.171.29"></a><var>171.29</var>former Minneapolis Employees Retirement Fund.<br/>
<a id="pl.171.30"></a><var>171.30</var>(e) Annually after June 30, 2012, The employer supplemental contribution to <br/>
<a id="pl.171.31"></a><var>171.31</var>the MERF division account by the city of Minneapolis, Special School District No. 1, <br/>
<a id="pl.171.32"></a><var>171.32</var>Minneapolis, a Minneapolis-owned public utility, improvement, or municipal activity, <br/>
<a id="pl.171.33"></a><var>171.33</var>Hennepin county, the Metropolitan Council, the Metropolitan Airports Commission, <br/>
<a id="pl.171.34"></a><var>171.34</var>and the Minnesota State Colleges and Universities system is the amount by which the <br/>
<a id="pl.171.35"></a><var>171.35</var>total actuarial required contribution determined under section 356.215 by the approved <br/>
<a id="pl.171.36"></a><var>171.36</var>actuary retained by the Public Employees Retirement Association in the most recent <br/>
<a id="pl.172.1"></a><var>172.1</var>actuarial valuation of the MERF division and based on a June 30, 2031, amortization <br/>
<a id="pl.172.2"></a><var>172.2</var>date, after subtracting the contributions under paragraphs (b), (c), and (d), exceeds <br/>
<a id="pl.172.3"></a><var>172.3</var>$........ Unless the various employing units agree to a different allocation and file that <br/>
<a id="pl.172.4"></a><var>172.4</var>agreement with the executive director by August 15 for the following calendar year, <br/>
<a id="pl.172.5"></a><var>172.5</var>each employing unit's share of the total employer supplemental contribution amount <br/>
<a id="pl.172.6"></a><var>172.6</var>is equal to its percentage share of the total amount allocated under Minnesota Statutes <br/>
<a id="pl.172.7"></a><var>172.7</var>2008, section 422A.101, subdivision 3, payable for calendar year 2009. The initial total <br/>
<a id="pl.172.8"></a><var>172.8</var>actuarial required contribution after June 30, 2012, must be calculated using the mortality <br/>
<a id="pl.172.9"></a><var>172.9</var>assumption change recommended on September 30, 2009, for the Minneapolis Employees <br/>
<a id="pl.172.10"></a><var>172.10</var>Retirement Fund by the approved consulting actuary retained by the Minneapolis <br/>
<a id="pl.172.11"></a><var>172.11</var>Employees Retirement Fund board.<br/>
<a id="pl.172.12"></a><var>172.12</var>(f) Notwithstanding any provision of paragraph (c), (d), or (e) to the contrary, as of <br/>
<a id="pl.172.13"></a><var>172.13</var>August 1 annually, if the amount of the retirement annuities and benefits paid from the <br/>
<a id="pl.172.14"></a><var>172.14</var>MERF division account during the preceding fiscal year, multiplied by the factor of 1.035, <br/>
<a id="pl.172.15"></a><var>172.15</var>exceeds the market value of the assets of the MERF division account on the preceding <br/>
<a id="pl.172.16"></a><var>172.16</var>June 30, plus state aid of $9,000,000 or $......., whichever applies, plus the amounts <br/>
<a id="pl.172.17"></a><var>172.17</var>payable under paragraphs (b), (c), (d), and (e) during the preceding fiscal year, multiplied <br/>
<a id="pl.172.18"></a><var>172.18</var>by the factor of 1.035, the balance calculated is a special additional employer contribution. <br/>
<a id="pl.172.19"></a><var>172.19</var>The special additional employer contribution under this paragraph is payable in addition <br/>
<a id="pl.172.20"></a><var>172.20</var>to any employer contribution required under paragraphs (c), (d), and (e), and is payable <br/>
<a id="pl.172.21"></a><var>172.21</var>on or before the following June 30. The special additional employer contribution under <br/>
<a id="pl.172.22"></a><var>172.22</var>this paragraph must be allocated between the city of Minneapolis, Special School District <br/>
<a id="pl.172.23"></a><var>172.23</var>No. 1, Minneapolis, any Minneapolis-owned public utility, improvement, or municipal <br/>
<a id="pl.172.24"></a><var>172.24</var>activity, the Minnesota State Colleges and Universities system, Hennepin County, the <br/>
<a id="pl.172.25"></a><var>172.25</var>Metropolitan Council, and the Metropolitan Airports Commission in proportion to their <br/>
<a id="pl.172.26"></a><var>172.26</var>share of the actuarial accrued liability of the former Minneapolis Employees Retirement <br/>
<a id="pl.172.27"></a><var>172.27</var>Fund as of July 1, 2009, as calculated by the approved actuary retained under section <br/>
<a id="pl.172.28"></a><var>172.28</var>356.214 as part of the actuarial valuation prepared as of July 1, 2009, under section <br/>
<a id="pl.172.29"></a><var>172.29</var>356.215 and the Standards for Actuarial Work adopted by the Legislative Commission on <br/>
<a id="pl.172.30"></a><var>172.30</var>Pensions and Retirement.<br/>
<a id="pl.172.31"></a><var>172.31</var>(g) The employer contributions under paragraphs (c), (d), and (e) must be paid as <br/>
<a id="pl.172.32"></a><var>172.32</var>provided in section 353.28.<br/>
<a id="pl.172.33"></a><var>172.33</var>(h) Contributions under this subdivision are subject to the provisions of section <br/>
<a id="pl.172.34"></a><var>172.34</var>353.27, subdivisions 4, 7, 7a, 7b, 11, 12, 12a, 12b, 13, and 14.<br/>
<a id="pl.172.35"></a><var>172.35</var>    Subd. 7a. <b>Minneapolis Municipal Retirement Association dues.</b> If authorized <br/>
<a id="pl.172.36"></a><var>172.36</var>by an annuitant or retirement benefit recipient in writing on a form prescribed by the <br/>
<a id="pl.173.1"></a><var>173.1</var>executive director of the Public Employees Retirement Association, the executive director <br/>
<a id="pl.173.2"></a><var>173.2</var>shall deduct the dues for the Minneapolis Municipal Retirement Association from the <br/>
<a id="pl.173.3"></a><var>173.3</var>person's annuity or retirement benefit. This dues deduction authority expires upon the <br/>
<a id="pl.173.4"></a><var>173.4</var>eventual full consolidation of the MERF account under subdivision 8.<br/>
<a id="pl.173.5"></a><var>173.5</var>    Subd. 8. <b>Eventual full consolidation.</b> (a) Once the fiscal year end market value <br/>
<a id="pl.173.6"></a><var>173.6</var>of assets of the MERF division account equals or exceeds 80 percent of the actuarial <br/>
<a id="pl.173.7"></a><var>173.7</var>accrued liability of the MERF division as calculated by the approved actuary retained by <br/>
<a id="pl.173.8"></a><var>173.8</var>the Public Employees Retirement Association under section 356.215 and the Standards <br/>
<a id="pl.173.9"></a><var>173.9</var>for Actuarial Work adopted by the Legislative Commission on Pensions and Retirement, <br/>
<a id="pl.173.10"></a><var>173.10</var>the MERF division must be merged with the general employees retirement plan of the <br/>
<a id="pl.173.11"></a><var>173.11</var>Public Employees Retirement Association and the MERF division account ceases as a <br/>
<a id="pl.173.12"></a><var>173.12</var>separate account within the general employees retirement fund of the Public Employees <br/>
<a id="pl.173.13"></a><var>173.13</var>Retirement Association.<br/>
<a id="pl.173.14"></a><var>173.14</var>(b) If the market value of the MERF division account is less than 100 percent of the <br/>
<a id="pl.173.15"></a><var>173.15</var>actuarial accrued liability of the MERF division under paragraph (a), the total employer <br/>
<a id="pl.173.16"></a><var>173.16</var>contribution of employing units referenced in subdivision 7, paragraph (e), for the period <br/>
<a id="pl.173.17"></a><var>173.17</var>after the full consolidation and June 30, 2031, to amortize on a level annual dollar payment <br/>
<a id="pl.173.18"></a><var>173.18</var>the remaining unfunded actuarial accrued liability of the former MERF division account <br/>
<a id="pl.173.19"></a><var>173.19</var>on the full consolidation date by June 30, 2031, shall be calculated by the consulting <br/>
<a id="pl.173.20"></a><var>173.20</var>actuary retained under section 356.214 using the applicable postretirement interest rate <br/>
<a id="pl.173.21"></a><var>173.21</var>actuarial assumption for the general employees retirement plan under section 356.215. <br/>
<a id="pl.173.22"></a><var>173.22</var>The actuarial accrued liability of the MERF division must be calculated using the healthy <br/>
<a id="pl.173.23"></a><var>173.23</var>retired life mortality assumption applicable to the general employees retirement plan.<br/>
<a id="pl.173.24"></a><var>173.24</var>(c) The merger shall occur as of the first day of the first month after the date on <br/>
<a id="pl.173.25"></a><var>173.25</var>which the triggering actuarial valuation report is filed with the executive director of the <br/>
<a id="pl.173.26"></a><var>173.26</var>Legislative Commission on Pensions and Retirement.<br/>
<a id="pl.173.27"></a><var>173.27</var>(d) The executive director of the Public Employees Retirement Association shall <br/>
<a id="pl.173.28"></a><var>173.28</var>prepare proposed legislation fully implementing the merger and updating the applicable <br/>
<a id="pl.173.29"></a><var>173.29</var>provisions of chapters 353 and 356 and transmit the proposed legislation to the executive <br/>
<a id="pl.173.30"></a><var>173.30</var>director of the Legislative Commission on Pensions and Retirement by the following <br/>
<a id="pl.173.31"></a><var>173.31</var>February 15.<br/>
<a id="pl.173.32"></a><var>173.32</var>    Subd. 9. <b>Merger of former MERF membership groups into PERA-general.</b><br/>
<a id="pl.173.33"></a><var>173.33</var>If provided for in an agreement between the board of trustees of the Public Employees <br/>
<a id="pl.173.34"></a><var>173.34</var>Retirement Association and the governing board of an employing unit formerly with <br/>
<a id="pl.173.35"></a><var>173.35</var>retirement coverage provided for its employees by the former Minneapolis Employees <br/>
<a id="pl.173.36"></a><var>173.36</var>Retirement Fund, an employing unit may transfer sufficient assets to the general <br/>
<a id="pl.174.1"></a><var>174.1</var>employees retirement fund to cover the anticipated actuarial accrued liability for its <br/>
<a id="pl.174.2"></a><var>174.2</var>current or former employees that is in excess of MERF division account assets attributable <br/>
<a id="pl.174.3"></a><var>174.3</var>to those employees, have those employees be considered full members of the general <br/>
<a id="pl.174.4"></a><var>174.4</var>employees retirement plan, and be relieved of any further contribution obligation to the <br/>
<a id="pl.174.5"></a><var>174.5</var>general employees retirement plan for those employees under this section. Any agreement <br/>
<a id="pl.174.6"></a><var>174.6</var>under this subdivision and any actuarial valuation report related to a merger under this <br/>
<a id="pl.174.7"></a><var>174.7</var>subdivision must be submitted to the executive director of the Legislative Commission on <br/>
<a id="pl.174.8"></a><var>174.8</var>Pensions and Retirement for comment prior to the final execution.<br/>
<br/>
<a id="bill.12.18.0"></a><a id="pl.174.9"></a><var>174.9</var>    Sec. 18. Minnesota Statutes 2008, section 353.64, subdivision 7, is amended to read:<br/>
<a id="pl.174.10"></a><var>174.10</var>    Subd. 7. <b>Pension coverage for </b><b>certain</b><b> public safety employees of </b><b>the</b><b> </b><br/>
<a id="pl.174.11"></a><var>174.11</var><b>Metropolitan Airports Commission.</b> Any person first employed as either a full-time <br/>
<a id="pl.174.12"></a><var>174.12</var>firefighter or a full-time police officer by the Metropolitan Airports Commission after June <br/>
<a id="pl.174.13"></a><var>174.13</var>30, 1978, who is not eligible for coverage under the agreement signed between the state <br/>
<a id="pl.174.14"></a><var>174.14</var>and the secretary of the federal Department of Health and Human Services making the <br/>
<a id="pl.174.15"></a><var>174.15</var>provisions of the federal Old Age, Survivors, and Disability Insurance Act applicable to <br/>
<a id="pl.174.16"></a><var>174.16</var>municipal employees because that position is excluded from application pursuant to under <br/>
<a id="pl.174.17"></a><var>174.17</var>Title 42, United States Code, Sections 418 (d) (5) (A) and 418 (d) (8) (D) and section <br/>
<statute_ref><a id="pl.174.18"></a><var>174.18</var>355.07
         </statute_ref>, shall not be a member of the Minneapolis Employees Retirement Fund but shall <br/>
<a id="pl.174.19"></a><var>174.19</var>be is a member of the public employees police and fire fund and shall be is deemed to be a <br/>
<a id="pl.174.20"></a><var>174.20</var>firefighter or a police officer within the meaning of this section. The Metropolitan Airports <br/>
<a id="pl.174.21"></a><var>174.21</var>Commission shall make the employer contribution required pursuant to under section <br/>
<statute_ref><a id="pl.174.22"></a><var>174.22</var>353.65, subdivision 3
         </statute_ref>, with respect to each of its firefighters or police officers covered <br/>
<a id="pl.174.23"></a><var>174.23</var>by the public employees police and fire fund and shall meet the employers recording and <br/>
<a id="pl.174.24"></a><var>174.24</var>reporting requirements set forth in section 
         <statute_ref>353.65, subdivision 4</statute_ref>. <br/>
<br/>
<a id="bill.12.19.0"></a><a id="pl.174.25"></a><var>174.25</var>    Sec. 19. Minnesota Statutes 2008, section 356.215, subdivision 8, is amended to read:<br/>
<a id="pl.174.26"></a><var>174.26</var>    Subd. 8. <b>Interest and salary assumptions.</b> (a) The actuarial valuation must use <br/>
<a id="pl.174.27"></a><var>174.27</var>the applicable following preretirement interest assumption and the applicable following <br/>
<a id="pl.174.28"></a><var>174.28</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.174.29"></a><var>174.29</var><br/>
<a id="pl.174.30"></a><var>174.30</var><br/>
<a id="pl.174.31"></a><var>174.31</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.174.32"></a><var>174.32</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.174.33"></a><var>174.33</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.174.34"></a><var>174.34</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.174.35"></a><var>174.35</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.174.36"></a><var>174.36</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.175.1"></a><var>175.1</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.175.2"></a><var>175.2</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.175.3"></a><var>175.3</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.175.4"></a><var>175.4</var><br/>
<a id="pl.175.5"></a><var>175.5</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.175.6"></a><var>175.6</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.175.7"></a><var>175.7</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.175.8"></a><var>175.8</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.175.9"></a><var>175.9</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.175.10"></a><var>175.10</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.175.11"></a><var>175.11</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.175.12"></a><var>175.12</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.175.13"></a><var>175.13</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.175.14"></a><var>175.14</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.175.15"></a><var>175.15</var><br/>
<a id="pl.175.16"></a><var>175.16</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.175.17"></a><var>175.17</var>    (b) Before July 1, 2010, the actuarial valuation must use the applicable following <br/>
<a id="pl.175.18"></a><var>175.18</var>single rate future salary increase assumption, the applicable following modified single <br/>
<a id="pl.175.19"></a><var>175.19</var>rate future salary increase assumption, or the applicable following graded rate future <br/>
<a id="pl.175.20"></a><var>175.20</var>salary increase assumption:<br/>
<a id="pl.175.21"></a><var>175.21</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.175.22"></a><var>175.22</var><br/>
<a id="pl.175.23"></a><var>175.23</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.175.24"></a><var>175.24</var><br/>
</td>
<td>legislators retirement plan<br/>
</td>
<td></td>
<td>5.0%<br/>
</td>
</tr>
<tr>
<td><a id="pl.175.25"></a><var>175.25</var><br/>
</td>
<td>judges retirement plan<br/>
</td>
<td></td>
<td>4.0 <br/>
</td>
</tr>
<tr>
<td><a id="pl.175.26"></a><var>175.26</var><br/>
</td>
<td>Minneapolis Police Relief Association<br/>
</td>
<td></td>
<td>4.0<br/>
</td>
</tr>
<tr>
<td><a id="pl.175.27"></a><var>175.27</var><br/>
</td>
<td>Fairmont Police Relief Association<br/>
</td>
<td></td>
<td>3.5<br/>
</td>
</tr>
<tr>
<td><a id="pl.175.28"></a><var>175.28</var><br/>
<a id="pl.175.29"></a><var>175.29</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.175.30"></a><var>175.30</var><br/>
</td>
<td>Virginia Fire Department Relief Association<br/>
</td>
<td></td>
<td>3.5<br/>
</td>
</tr>
<tr>
<td><a id="pl.175.31"></a><var>175.31</var><br/>
<a id="pl.175.32"></a><var>175.32</var><br/>
</td>
<td>Bloomington Fire Department Relief <br/>
                  		Association<br/>
</td>
<td></td>
<td>4.0<br/>
</td>
</tr>
</table><a id="pl.175.33"></a><var>175.33</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.175.34"></a><var>175.34</var><br/>
<a id="pl.175.35"></a><var>175.35</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.175.36"></a><var>175.36</var><br/>
<a id="pl.175.37"></a><var>175.37</var><br/>
<a id="pl.175.38"></a><var>175.38</var><br/>
<a id="pl.175.39"></a><var>175.39</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.175.40"></a><var>175.40</var>    (3) (2) select and ultimate future salary increase assumption or graded rate future <br/>
<a id="pl.175.41"></a><var>175.41</var>salary increase assumption<br/>
<table>
<col width="50px"/>
<col width="40"/>
<col width="25"/>
<tr>
<td><a id="pl.176.1"></a><var>176.1</var><br/>
<a id="pl.176.2"></a><var>176.2</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.176.3"></a><var>176.3</var><br/>
<a id="pl.176.4"></a><var>176.4</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.176.5"></a><var>176.5</var><br/>
</td>
<td valign="top">correctional state employees retirement plan<br/>
</td>
<td align="center" valign="top">assumption H<br/>
</td>
</tr>
<tr>
<td><a id="pl.176.6"></a><var>176.6</var><br/>
</td>
<td valign="top">State Patrol retirement plan<br/>
</td>
<td align="center" valign="top">assumption G<br/>
</td>
</tr>
<tr>
<td><a id="pl.176.7"></a><var>176.7</var><br/>
<a id="pl.176.8"></a><var>176.8</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.176.9"></a><var>176.9</var><br/>
</td>
<td valign="top">public employees police and fire fund retirement plan<br/>
</td>
<td align="center" valign="top">assumption C<br/>
</td>
</tr>
<tr>
<td><a id="pl.176.10"></a><var>176.10</var><br/>
</td>
<td valign="top">local government correctional service retirement plan<br/>
</td>
<td align="center" valign="top">assumption G<br/>
</td>
</tr>
<tr>
<td><a id="pl.176.11"></a><var>176.11</var><br/>
</td>
<td valign="top">teachers retirement plan<br/>
</td>
<td align="center" valign="top">assumption D<br/>
</td>
</tr>
<tr>
<td><a id="pl.176.12"></a><var>176.12</var><br/>
</td>
<td valign="top">Duluth teachers retirement plan<br/>
</td>
<td align="center" valign="top">assumption E<br/>
</td>
</tr>
<tr>
<td><a id="pl.176.13"></a><var>176.13</var><br/>
</td>
<td valign="top">St. Paul teachers retirement plan<br/>
</td>
<td align="center" valign="top">assumption F<br/>
</td>
</tr>
</table><a id="pl.176.14"></a><var>176.14</var>The select calculation is: during the <br/>
<a id="pl.176.15"></a><var>176.15</var>designated select period, a designated <br/>
<a id="pl.176.16"></a><var>176.16</var>percentage rate is multiplied by the result of <br/>
<a id="pl.176.17"></a><var>176.17</var>the designated integer minus T, where T is the <br/>
<a id="pl.176.18"></a><var>176.18</var>number of completed years of service, and is <br/>
<a id="pl.176.19"></a><var>176.19</var>added to the applicable future salary increase <br/>
<a id="pl.176.20"></a><var>176.20</var>assumption. The designated select period is <br/>
<a id="pl.176.21"></a><var>176.21</var>five years and the designated integer is five <br/>
<a id="pl.176.22"></a><var>176.22</var>for the general state employees retirement <br/>
<a id="pl.176.23"></a><var>176.23</var>plan and the general public employees <br/>
<a id="pl.176.24"></a><var>176.24</var>retirement plan. The designated select period <br/>
<a id="pl.176.25"></a><var>176.25</var>is ten years and the designated integer is ten <br/>
<a id="pl.176.26"></a><var>176.26</var>for all other retirement plans covered by <br/>
<a id="pl.176.27"></a><var>176.27</var>this clause. The designated percentage rate <br/>
<a id="pl.176.28"></a><var>176.28</var>is: (1) 0.2 percent for the correctional state <br/>
<a id="pl.176.29"></a><var>176.29</var>employees retirement plan, the State Patrol <br/>
<a id="pl.176.30"></a><var>176.30</var>retirement plan, the public employees police <br/>
<a id="pl.176.31"></a><var>176.31</var>and fire plan, and the local government <br/>
<a id="pl.176.32"></a><var>176.32</var>correctional service plan; (2) 0.6 percent <br/>
<a id="pl.176.33"></a><var>176.33</var>for the general state employees retirement <br/>
<a id="pl.176.34"></a><var>176.34</var>plan and the general public employees <br/>
<a id="pl.176.35"></a><var>176.35</var>retirement plan; and (3) 0.3 percent for the <br/>
<a id="pl.176.36"></a><var>176.36</var>teachers retirement plan, the Duluth Teachers <br/>
<a id="pl.176.37"></a><var>176.37</var>Retirement Fund Association, and the St. <br/>
<a id="pl.176.38"></a><var>176.38</var>Paul Teachers Retirement Fund Association. <br/>
<a id="pl.177.1"></a><var>177.1</var>The select calculation for the Duluth Teachers <br/>
<a id="pl.177.2"></a><var>177.2</var>Retirement Fund Association is 8.00 percent <br/>
<a id="pl.177.3"></a><var>177.3</var>per year for service years one through seven, <br/>
<a id="pl.177.4"></a><var>177.4</var>7.25 percent per year for service years seven <br/>
<a id="pl.177.5"></a><var>177.5</var>and eight, and 6.50 percent per year for <br/>
<a id="pl.177.6"></a><var>177.6</var>service years eight and nine.<br/>
<a id="pl.177.7"></a><var>177.7</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.177.8"></a><var>177.8</var><br/>
</td>
<td>age<br/>
</td>
<td>A<br/>
</td>
<td>B<br/>
</td>
<td>C<br/>
</td>
<td>D<br/>
</td>
<td>E<br/>
</td>
<td>F<br/>
</td>
<td>G<br/>
</td>
<td>H<br/>
</td>
</tr>
<tr>
<td><a id="pl.177.9"></a><var>177.9</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.177.10"></a><var>177.10</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.177.11"></a><var>177.11</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.177.12"></a><var>177.12</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.177.13"></a><var>177.13</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.177.14"></a><var>177.14</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.177.15"></a><var>177.15</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.177.16"></a><var>177.16</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.177.17"></a><var>177.17</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.177.18"></a><var>177.18</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.177.19"></a><var>177.19</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.177.20"></a><var>177.20</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.177.21"></a><var>177.21</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.177.22"></a><var>177.22</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.177.23"></a><var>177.23</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.177.24"></a><var>177.24</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.177.25"></a><var>177.25</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.177.26"></a><var>177.26</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.177.27"></a><var>177.27</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.177.28"></a><var>177.28</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.177.29"></a><var>177.29</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.177.30"></a><var>177.30</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.177.31"></a><var>177.31</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.177.32"></a><var>177.32</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.177.33"></a><var>177.33</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.177.34"></a><var>177.34</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.177.35"></a><var>177.35</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.177.36"></a><var>177.36</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.177.37"></a><var>177.37</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.177.38"></a><var>177.38</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.177.39"></a><var>177.39</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.177.40"></a><var>177.40</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.177.41"></a><var>177.41</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.177.42"></a><var>177.42</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.178.1"></a><var>178.1</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.178.2"></a><var>178.2</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.178.3"></a><var>178.3</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.178.4"></a><var>178.4</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.178.5"></a><var>178.5</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.178.6"></a><var>178.6</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.178.7"></a><var>178.7</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.178.8"></a><var>178.8</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.178.9"></a><var>178.9</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.178.10"></a><var>178.10</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.178.11"></a><var>178.11</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.178.12"></a><var>178.12</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.178.13"></a><var>178.13</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.178.14"></a><var>178.14</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.178.15"></a><var>178.15</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.178.16"></a><var>178.16</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.178.17"></a><var>178.17</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.178.18"></a><var>178.18</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.178.19"></a><var>178.19</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.178.20"></a><var>178.20</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.178.21"></a><var>178.21</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.178.22"></a><var>178.22</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.178.23"></a><var>178.23</var>    (c) Before July 2, 2010, the actuarial valuation must use the applicable following <br/>
<a id="pl.178.24"></a><var>178.24</var>payroll growth assumption for calculating the amortization requirement for the unfunded <br/>
<a id="pl.178.25"></a><var>178.25</var>actuarial accrued liability where the amortization retirement is calculated as a level <br/>
<a id="pl.178.26"></a><var>178.26</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.178.27"></a><var>178.27</var><br/>
<a id="pl.178.28"></a><var>178.28</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.178.29"></a><var>178.29</var><br/>
</td>
<td>general state employees retirement plan<br/>
</td>
<td></td>
<td>4.50%<br/>
</td>
</tr>
<tr>
<td><a id="pl.178.30"></a><var>178.30</var><br/>
</td>
<td>correctional state employees retirement plan<br/>
</td>
<td></td>
<td>4.50<br/>
</td>
</tr>
<tr>
<td><a id="pl.178.31"></a><var>178.31</var><br/>
</td>
<td>State Patrol retirement plan<br/>
</td>
<td></td>
<td>4.50<br/>
</td>
</tr>
<tr>
<td><a id="pl.178.32"></a><var>178.32</var><br/>
</td>
<td>legislators retirement plan<br/>
</td>
<td></td>
<td>4.50<br/>
</td>
</tr>
<tr>
<td><a id="pl.178.33"></a><var>178.33</var><br/>
</td>
<td>judges retirement plan<br/>
</td>
<td></td>
<td>4.00<br/>
</td>
</tr>
<tr>
<td><a id="pl.178.34"></a><var>178.34</var><br/>
</td>
<td>general public employees retirement plan<br/>
</td>
<td></td>
<td>4.50<br/>
</td>
</tr>
<tr>
<td><a id="pl.178.35"></a><var>178.35</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.178.36"></a><var>178.36</var><br/>
<a id="pl.178.37"></a><var>178.37</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.178.38"></a><var>178.38</var><br/>
</td>
<td>teachers retirement plan<br/>
</td>
<td></td>
<td>4.50<br/>
</td>
</tr>
<tr>
<td><a id="pl.178.39"></a><var>178.39</var><br/>
</td>
<td>Duluth teachers retirement plan<br/>
</td>
<td></td>
<td>4.50<br/>
</td>
</tr>
<tr>
<td><a id="pl.178.40"></a><var>178.40</var><br/>
</td>
<td>St. Paul teachers retirement plan<br/>
</td>
<td></td>
<td>5.00<br/>
</td>
</tr>
</table><a id="pl.178.41"></a><var>178.41</var>    (d) After July 1, 2010, the assumptions set forth in paragraphs (b) and (c) continue to <br/>
<a id="pl.178.42"></a><var>178.42</var>apply, unless a different salary assumption or a different payroll increase assumption:<br/>
<a id="pl.179.1"></a><var>179.1</var>    (1) has been proposed by the governing board of the applicable retirement plan;<br/>
<a id="pl.179.2"></a><var>179.2</var>    (2) is accompanied by the concurring recommendation of the actuary retained under <br/>
<a id="pl.179.3"></a><var>179.3</var>section 
         <statute_ref>356.214, subdivision 1</statute_ref>, if applicable, or by the approved actuary preparing the <br/>
<a id="pl.179.4"></a><var>179.4</var>most recent actuarial valuation report if section 
         <statute_ref>356.214</statute_ref> does not apply; and<br/>
<a id="pl.179.5"></a><var>179.5</var>    (3) has been approved or deemed approved under subdivision 18.<br/>
<br/>
<a id="bill.12.20.0"></a><a id="pl.179.6"></a><var>179.6</var>    Sec. 20. Minnesota Statutes 2009 Supplement, section 356.215, subdivision 11, <br/>
<a id="pl.179.7"></a><var>179.7</var>is amended to read:<br/>
<a id="pl.179.8"></a><var>179.8</var>    Subd. 11. <b>Amortization contributions.</b> (a) In addition to the exhibit indicating <br/>
<a id="pl.179.9"></a><var>179.9</var>the level normal cost, the actuarial valuation of the retirement plan must contain an <br/>
<a id="pl.179.10"></a><var>179.10</var>exhibit for financial reporting purposes indicating the additional annual contribution <br/>
<a id="pl.179.11"></a><var>179.11</var>sufficient to amortize the unfunded actuarial accrued liability and must contain an exhibit <br/>
<a id="pl.179.12"></a><var>179.12</var>for contribution determination purposes indicating the additional contribution sufficient <br/>
<a id="pl.179.13"></a><var>179.13</var>to amortize the unfunded actuarial accrued liability. For the retirement plans listed in <br/>
<a id="pl.179.14"></a><var>179.14</var>subdivision 8, paragraph (c), but excluding the MERF division of the Public Employees <br/>
<a id="pl.179.15"></a><var>179.15</var>Retirement Association, the additional contribution must be calculated on a level <br/>
<a id="pl.179.16"></a><var>179.16</var>percentage of covered payroll basis by the established date for full funding in effect when <br/>
<a id="pl.179.17"></a><var>179.17</var>the valuation is prepared, assuming annual payroll growth at the applicable percentage <br/>
<a id="pl.179.18"></a><var>179.18</var>rate set forth in subdivision 8, paragraph (c). For all other retirement plans and for the <br/>
<a id="pl.179.19"></a><var>179.19</var>MERF division of the Public Employees Retirement Association, the additional annual <br/>
<a id="pl.179.20"></a><var>179.20</var>contribution must be calculated on a level annual dollar amount basis. <br/>
<a id="pl.179.21"></a><var>179.21</var>    (b) For any retirement plan other than the Minneapolis Employees Retirement Fund, <br/>
<a id="pl.179.22"></a><var>179.22</var>the general employees a retirement plan of the Public Employees Retirement Association, <br/>
<a id="pl.179.23"></a><var>179.23</var>and the St. Paul Teachers Retirement Fund Association governed by paragraph (d), (e), <br/>
<a id="pl.179.24"></a><var>179.24</var>(f), (g), (h), (i), or (j), if there has not been a change in the actuarial assumptions used <br/>
<a id="pl.179.25"></a><var>179.25</var>for calculating the actuarial accrued liability of the fund, a change in the benefit plan <br/>
<a id="pl.179.26"></a><var>179.26</var>governing annuities and benefits payable from the fund, a change in the actuarial cost <br/>
<a id="pl.179.27"></a><var>179.27</var>method used in calculating the actuarial accrued liability of all or a portion of the fund, or <br/>
<a id="pl.179.28"></a><var>179.28</var>a combination of the three, which change or changes by itself or by themselves without <br/>
<a id="pl.179.29"></a><var>179.29</var>inclusion of any other items of increase or decrease produce a net increase in the unfunded <br/>
<a id="pl.179.30"></a><var>179.30</var>actuarial accrued liability of the fund, the established date for full funding is the first <br/>
<a id="pl.179.31"></a><var>179.31</var>actuarial valuation date occurring after June 1, 2020.<br/>
<a id="pl.179.32"></a><var>179.32</var>    (c) For any retirement plan other than the Minneapolis Employees Retirement <br/>
<a id="pl.179.33"></a><var>179.33</var>Fund and the general employees retirement plan of the Public Employees Retirement <br/>
<a id="pl.179.34"></a><var>179.34</var>Association, if there has been a change in any or all of the actuarial assumptions used <br/>
<a id="pl.179.35"></a><var>179.35</var>for calculating the actuarial accrued liability of the fund, a change in the benefit plan <br/>
<a id="pl.180.1"></a><var>180.1</var>governing annuities and benefits payable from the fund, a change in the actuarial cost <br/>
<a id="pl.180.2"></a><var>180.2</var>method used in calculating the actuarial accrued liability of all or a portion of the fund, <br/>
<a id="pl.180.3"></a><var>180.3</var>or a combination of the three, and the change or changes, by itself or by themselves and <br/>
<a id="pl.180.4"></a><var>180.4</var>without inclusion of any other items of increase or decrease, produce a net increase in the <br/>
<a id="pl.180.5"></a><var>180.5</var>unfunded actuarial accrued liability in the fund, the established date for full funding must <br/>
<a id="pl.180.6"></a><var>180.6</var>be determined using the following procedure:<br/>
<a id="pl.180.7"></a><var>180.7</var>    (i) the unfunded actuarial accrued liability of the fund must be determined in <br/>
<a id="pl.180.8"></a><var>180.8</var>accordance with the plan provisions governing annuities and retirement benefits and the <br/>
<a id="pl.180.9"></a><var>180.9</var>actuarial assumptions in effect before an applicable change;<br/>
<a id="pl.180.10"></a><var>180.10</var>    (ii) the level annual dollar contribution or level percentage, whichever is applicable, <br/>
<a id="pl.180.11"></a><var>180.11</var>needed to amortize the unfunded actuarial accrued liability amount determined under item <br/>
<a id="pl.180.12"></a><var>180.12</var>(i) by the established date for full funding in effect before the change must be calculated <br/>
<a id="pl.180.13"></a><var>180.13</var>using the interest assumption specified in subdivision 8 in effect before the change;<br/>
<a id="pl.180.14"></a><var>180.14</var>    (iii) the unfunded actuarial accrued liability of the fund must be determined in <br/>
<a id="pl.180.15"></a><var>180.15</var>accordance with any new plan provisions governing annuities and benefits payable from <br/>
<a id="pl.180.16"></a><var>180.16</var>the fund and any new actuarial assumptions and the remaining plan provisions governing <br/>
<a id="pl.180.17"></a><var>180.17</var>annuities and benefits payable from the fund and actuarial assumptions in effect before <br/>
<a id="pl.180.18"></a><var>180.18</var>the change;<br/>
<a id="pl.180.19"></a><var>180.19</var>    (iv) the level annual dollar contribution or level percentage, whichever is applicable, <br/>
<a id="pl.180.20"></a><var>180.20</var>needed to amortize the difference between the unfunded actuarial accrued liability amount <br/>
<a id="pl.180.21"></a><var>180.21</var>calculated under item (i) and the unfunded actuarial accrued liability amount calculated <br/>
<a id="pl.180.22"></a><var>180.22</var>under item (iii) over a period of 30 years from the end of the plan year in which the <br/>
<a id="pl.180.23"></a><var>180.23</var>applicable change is effective must be calculated using the applicable interest assumption <br/>
<a id="pl.180.24"></a><var>180.24</var>specified in subdivision 8 in effect after any applicable change;<br/>
<a id="pl.180.25"></a><var>180.25</var>    (v) the level annual dollar or level percentage amortization contribution under item <br/>
<a id="pl.180.26"></a><var>180.26</var>(iv) must be added to the level annual dollar amortization contribution or level percentage <br/>
<a id="pl.180.27"></a><var>180.27</var>calculated under item (ii);<br/>
<a id="pl.180.28"></a><var>180.28</var>    (vi) the period in which the unfunded actuarial accrued liability amount determined <br/>
<a id="pl.180.29"></a><var>180.29</var>in item (iii) is amortized by the total level annual dollar or level percentage amortization <br/>
<a id="pl.180.30"></a><var>180.30</var>contribution computed under item (v) must be calculated using the interest assumption <br/>
<a id="pl.180.31"></a><var>180.31</var>specified in subdivision 8 in effect after any applicable change, rounded to the nearest <br/>
<a id="pl.180.32"></a><var>180.32</var>integral number of years, but not to exceed 30 years from the end of the plan year in <br/>
<a id="pl.180.33"></a><var>180.33</var>which the determination of the established date for full funding using the procedure set <br/>
<a id="pl.180.34"></a><var>180.34</var>forth in this clause is made and not to be less than the period of years beginning in the <br/>
<a id="pl.180.35"></a><var>180.35</var>plan year in which the determination of the established date for full funding using the <br/>
<a id="pl.181.1"></a><var>181.1</var>procedure set forth in this clause is made and ending by the date for full funding in effect <br/>
<a id="pl.181.2"></a><var>181.2</var>before the change; and<br/>
<a id="pl.181.3"></a><var>181.3</var>    (vii) the period determined under item (vi) must be added to the date as of which <br/>
<a id="pl.181.4"></a><var>181.4</var>the actuarial valuation was prepared and the date obtained is the new established date <br/>
<a id="pl.181.5"></a><var>181.5</var>for full funding.<br/>
<a id="pl.181.6"></a><var>181.6</var>    (d) For the Minneapolis Employees Retirement Fund MERF division of the Public <br/>
<a id="pl.181.7"></a><var>181.7</var>Employees Retirement Association, the established date for full funding is June 30, 2020 <br/>
<a id="pl.181.8"></a><var>181.8</var>2031.<br/>
<a id="pl.181.9"></a><var>181.9</var>    (e) For the general employees retirement plan of the Public Employees Retirement <br/>
<a id="pl.181.10"></a><var>181.10</var>Association, the established date for full funding is June 30, 2031.<br/>
<a id="pl.181.11"></a><var>181.11</var>    (f) For the Teachers Retirement Association, the established date for full funding is <br/>
<a id="pl.181.12"></a><var>181.12</var>June 30, 2037.<br/>
<a id="pl.181.13"></a><var>181.13</var>    (g) For the correctional state employees retirement plan of the Minnesota State <br/>
<a id="pl.181.14"></a><var>181.14</var>Retirement System, the established date for full funding is June 30, 2038.<br/>
<a id="pl.181.15"></a><var>181.15</var>    (h) For the judges retirement plan, the established date for full funding is June <br/>
<a id="pl.181.16"></a><var>181.16</var>30, 2038.<br/>
<a id="pl.181.17"></a><var>181.17</var>    (i) For the public employees police and fire retirement plan, the established date <br/>
<a id="pl.181.18"></a><var>181.18</var>for full funding is June 30, 2038.<br/>
<a id="pl.181.19"></a><var>181.19</var>    (j) For the St. Paul Teachers Retirement Fund Association, the established date for <br/>
<a id="pl.181.20"></a><var>181.20</var>full funding is June 30 of the 25th year from the valuation date. In addition to other <br/>
<a id="pl.181.21"></a><var>181.21</var>requirements of this chapter, the annual actuarial valuation shall must contain an exhibit <br/>
<a id="pl.181.22"></a><var>181.22</var>indicating the funded ratio and the deficiency or sufficiency in annual contributions when <br/>
<a id="pl.181.23"></a><var>181.23</var>comparing liabilities to the market value of the assets of the fund as of the close of the <br/>
<a id="pl.181.24"></a><var>181.24</var>most recent fiscal year.<br/>
<a id="pl.181.25"></a><var>181.25</var>    (k) For the retirement plans for which the annual actuarial valuation indicates an <br/>
<a id="pl.181.26"></a><var>181.26</var>excess of valuation assets over the actuarial accrued liability, the valuation assets in <br/>
<a id="pl.181.27"></a><var>181.27</var>excess of the actuarial accrued liability must be recognized as a reduction in the current <br/>
<a id="pl.181.28"></a><var>181.28</var>contribution requirements by an amount equal to the amortization of the excess expressed <br/>
<a id="pl.181.29"></a><var>181.29</var>as a level percentage of pay over a 30-year period beginning anew with each annual <br/>
<a id="pl.181.30"></a><var>181.30</var>actuarial valuation of the plan.<br/>
<br/>
<a id="bill.12.21.0"></a><a id="pl.181.31"></a><var>181.31</var>    Sec. 21. Minnesota Statutes 2008, section 422A.101, subdivision 3, is amended to read:<br/>
<a id="pl.181.32"></a><var>181.32</var>    Subd. 3. <b>State contributions.</b> (a) Subject to the limitation set forth in paragraph <br/>
<a id="pl.181.33"></a><var>181.33</var>(c), the state shall pay to the MERF division account of the Public Employees Retirement <br/>
<a id="pl.181.34"></a><var>181.34</var>Association with respect to the former Minneapolis Employees Retirement Fund annually <br/>
<a id="pl.181.35"></a><var>181.35</var>an amount equal to the amount calculated under paragraph (b).<br/>
<a id="pl.182.1"></a><var>182.1</var>    (b) The payment amount is an amount equal to the financial requirements of the <br/>
<a id="pl.182.2"></a><var>182.2</var>Minneapolis Employees Retirement Fund MERF division of the Public Employees <br/>
<a id="pl.182.3"></a><var>182.3</var>Retirement Association reported in the actuarial valuation of the fund general employees <br/>
<a id="pl.182.4"></a><var>182.4</var>retirement plan of the Public Employees Retirement Association prepared by the actuary <br/>
<a id="pl.182.5"></a><var>182.5</var>retained under section 
         <statute_ref>356.214</statute_ref> consistent with section 
         <statute_ref>356.215</statute_ref> for the most recent year <br/>
<a id="pl.182.6"></a><var>182.6</var>but based on a target date for full amortization of the unfunded actuarial accrued liabilities <br/>
<a id="pl.182.7"></a><var>182.7</var>by June 30, 2020 2031, less the amount of employee contributions required under section <br/>
<statute_ref><a id="pl.182.8"></a><var>182.8</var>422A.10
</statute_ref> 353.50, subdivision 7, paragraph (b), and the amount of employer contributions <br/>
<a id="pl.182.9"></a><var>182.9</var>required under subdivisions 1a, 2, and 2a section 353.50, subdivision 7, paragraphs (c) <br/>
<a id="pl.182.10"></a><var>182.10</var>and (d). Payments shall must be made September 15 annually. <br/>
<a id="pl.182.11"></a><var>182.11</var>    (c) The annual state contribution under this subdivision may not exceed $9,000,000, <br/>
<a id="pl.182.12"></a><var>182.12</var>plus the cost of the annual supplemental benefit determined under Minnesota Statutes <br/>
<a id="pl.182.13"></a><var>182.13</var>2008, section 
         <statute_ref>356.43</statute_ref>, through June 30, 2012, and may not exceed $9,000,000, plus the <br/>
<a id="pl.182.14"></a><var>182.14</var>cost of the annual supplemental benefit determined under Minnesota Statutes 2008, section <br/>
<a id="pl.182.15"></a><var>182.15</var>356.43, plus $....... annually after June 30, 2012, and until June 30, 2031. <br/>
<a id="pl.182.16"></a><var>182.16</var>    (d) Annually and after June 30, 2012, if the amount determined under paragraph <br/>
<a id="pl.182.17"></a><var>182.17</var>(b) exceeds $9,000,000 the applicable maximum amount specified in paragraph (c), <br/>
<a id="pl.182.18"></a><var>182.18</var>the excess must be allocated to and paid to the fund by the employers identified in <br/>
<a id="pl.182.19"></a><var>182.19</var>Minnesota Statutes 2008, section 422A.101, subdivisions 1a and, 2, other than units of <br/>
<a id="pl.182.20"></a><var>182.20</var>metropolitan government and 2a. Each employer's share of the excess is proportionate <br/>
<a id="pl.182.21"></a><var>182.21</var>to the employer's share of the fund's unfunded actuarial accrued liability as disclosed in <br/>
<a id="pl.182.22"></a><var>182.22</var>the annual actuarial valuation prepared by the actuary retained under section 
         <statute_ref>356.214</statute_ref> <br/>
<a id="pl.182.23"></a><var>182.23</var>compared to the total unfunded actuarial accrued liability as of July 1, 2009, attributed <br/>
<a id="pl.182.24"></a><var>182.24</var>to all employers identified in Minnesota Statutes 2008, section 422A.101, subdivisions <br/>
<a id="pl.182.25"></a><var>182.25</var>1a and 2, other than units of metropolitan government. Payments must be made in equal <br/>
<a id="pl.182.26"></a><var>182.26</var>installments as set forth in paragraph (b).<br/>
<a id="pl.182.27"></a><var>182.27</var>(e) State contributions under this section end on September 15, 2031, or on <br/>
<a id="pl.182.28"></a><var>182.28</var>September 1 following the first date on which the current assets of the MERF division <br/>
<a id="pl.182.29"></a><var>182.29</var>of the Public Employees Retirement Association equal or exceed the actuarial accrued <br/>
<a id="pl.182.30"></a><var>182.30</var>liability of the MERF division of the Public Employees Retirement Association, <br/>
<a id="pl.182.31"></a><var>182.31</var>whichever occurs earlier.<br/>
<br/>
<a id="bill.12.22.0"></a><a id="pl.182.32"></a><var>182.32</var>    Sec. 22. Minnesota Statutes 2008, section 422A.26, is amended to read:<br/>
<a id="pl.182.33"></a><var>182.33</var><b>422A.26 COVERAGE BY THE PUBLIC EMPLOYEES RETIREMENT </b><br/>
<a id="pl.182.34"></a><var>182.34</var><b>ASSOCIATION.</b><br/>
<a id="pl.183.1"></a><var>183.1</var>Notwithstanding section 
<statute_ref>422A.09</statute_ref>, or any other law to the contrary, any person <br/>
<a id="pl.183.2"></a><var>183.2</var>whose employment by, or assumption of a position as an appointed or elected officer <br/>
<a id="pl.183.3"></a><var>183.3</var>of, the city of Minneapolis, any of the boards, departments, or commissions operated <br/>
<a id="pl.183.4"></a><var>183.4</var>as a department of the city of Minneapolis or independently if financed in whole or in <br/>
<a id="pl.183.5"></a><var>183.5</var>part by funds of the city of Minneapolis, the Metropolitan Airports Commission, the <br/>
<a id="pl.183.6"></a><var>183.6</var>former Minneapolis Employees Retirement Fund, or Special School District Number 1 if <br/>
<a id="pl.183.7"></a><var>183.7</var>the person is not a member of the Minneapolis Teachers Retirement Fund Association <br/>
<a id="pl.183.8"></a><var>183.8</var>by virtue of that employment or position, initially commences on or after July 1, 1979 <br/>
<a id="pl.183.9"></a><var>183.9</var>shall be, is a member of the general employees retirement plan of the Public Employees <br/>
<a id="pl.183.10"></a><var>183.10</var>Retirement Association unless excluded from membership pursuant to under section <br/>
<statute_ref><a id="pl.183.11"></a><var>183.11</var>353.01, subdivision 2b
         </statute_ref>. In no event shall there be any new members of the contributing <br/>
<a id="pl.183.12"></a><var>183.12</var>class of the Minneapolis employees fund on or after July 1, 1979.  <br/>
<br/>
<a id="bill.12.23.0"></a><a id="pl.183.13"></a><var>183.13</var>    Sec. 23. <b>JULY 1, 2010, MERF DIVISION ACTUARIAL VALUATION </b><br/>
<a id="pl.183.14"></a><var>183.14</var><b>ASSUMPTIONS.</b><br/>
<a id="pl.183.15"></a><var>183.15</var>The approved actuary retained by the Minneapolis Employees Retirement Fund shall <br/>
<a id="pl.183.16"></a><var>183.16</var>compare the actuarial assumptions to be used for the July 1, 2010, actuarial valuation of <br/>
<a id="pl.183.17"></a><var>183.17</var>the general employees retirement plan of the Public Employees Retirement Association <br/>
<a id="pl.183.18"></a><var>183.18</var>with the actuarial assumptions used to prepare the July 1, 2009, actuarial valuation of the <br/>
<a id="pl.183.19"></a><var>183.19</var>Minneapolis Employees Retirement Fund and, on or before July 1, 2010, shall recommend <br/>
<a id="pl.183.20"></a><var>183.20</var>to the approved actuary retained by the Public Employees Retirement Association and to <br/>
<a id="pl.183.21"></a><var>183.21</var>the Legislative Commission on Pensions and Retirement the actuarial assumptions that <br/>
<a id="pl.183.22"></a><var>183.22</var>the actuary believes would be appropriate for the MERF division portion of the actuarial <br/>
<a id="pl.183.23"></a><var>183.23</var>valuation of the general employees retirement plan of the Public Employees Retirement <br/>
<a id="pl.183.24"></a><var>183.24</var>Association. Any actuarial assumption changes related to the MERF division must be <br/>
<a id="pl.183.25"></a><var>183.25</var>approved under Minnesota Statutes, section 356.215, subdivision 18.<br/>
<br/>
<a id="bill.12.24.0"></a><a id="pl.183.26"></a><var>183.26</var>    Sec. 24. <b>MINNEAPOLIS MUNICIPAL RETIREMENT ASSOCIATION.</b><br/>
<a id="pl.183.27"></a><var>183.27</var>(a) The administrative consolidation of the former Minneapolis Employees <br/>
<a id="pl.183.28"></a><var>183.28</var>Retirement Fund into the general employees retirement plan of the Public Employees <br/>
<a id="pl.183.29"></a><var>183.29</var>Retirement Association and the merger of the MERF division of the Public Employees <br/>
<a id="pl.183.30"></a><var>183.30</var>Retirement Association into the general employees retirement plan of the Public <br/>
<a id="pl.183.31"></a><var>183.31</var>Employees Retirement Association does not affect the function of the Minneapolis <br/>
<a id="pl.183.32"></a><var>183.32</var>Municipal Retirement Association, a nonprofit corporation, to monitor the administration <br/>
<a id="pl.183.33"></a><var>183.33</var>of the retirement coverage for former members of the former Minneapolis Employees <br/>
<a id="pl.183.34"></a><var>183.34</var>Retirement Fund.<br/>
<a id="pl.184.1"></a><var>184.1</var>(b) Nothing in this article entitles the Minneapolis Municipal Retirement Association <br/>
<a id="pl.184.2"></a><var>184.2</var>to receive any revenue derived from taxes or obligates the Public Employees Retirement <br/>
<a id="pl.184.3"></a><var>184.3</var>Association to undertake any special duties with respect to the corporation.<br/>
<br/>
<a id="bill.12.25.0"></a><a id="pl.184.4"></a><var>184.4</var>    Sec. 25. <b>TRANSFER OF MERF EMPLOYEES.</b><br/>
<a id="pl.184.5"></a><var>184.5</var>(a) Unless the employee elects the severance pay option under paragraph (c), <br/>
<a id="pl.184.6"></a><var>184.6</var>full-time employees of the Minneapolis Employees Retirement Fund first employed <br/>
<a id="pl.184.7"></a><var>184.7</var>before June 30, 2008, and employed full time by the Minneapolis Employees Retirement <br/>
<a id="pl.184.8"></a><var>184.8</var>Fund on June 29, 2010, with the employment title of benefits coordinator, are transferred <br/>
<a id="pl.184.9"></a><var>184.9</var>to employment by the city of Minneapolis on July 1, 2010. The chief human relations <br/>
<a id="pl.184.10"></a><var>184.10</var>official of the city of Minneapolis shall place the transferred employee in an appropriate <br/>
<a id="pl.184.11"></a><var>184.11</var>employment position based on the employee's education and employment experience. <br/>
<a id="pl.184.12"></a><var>184.12</var>Transferred employees must have their accumulated, but unused, vacation and sick leave <br/>
<a id="pl.184.13"></a><var>184.13</var>balances as of June 30, 2010, posted to the individual accounts with the new employer. <br/>
<a id="pl.184.14"></a><var>184.14</var>The transferred employees must receive length of service credit for time served with the <br/>
<a id="pl.184.15"></a><var>184.15</var>Minneapolis Employees Retirement Fund. The transferred employee must be given the <br/>
<a id="pl.184.16"></a><var>184.16</var>opportunity as of the date of transfer to be covered for all health and other insurance <br/>
<a id="pl.184.17"></a><var>184.17</var>benefits offered by the new employer. Upon the transfer of the employee, the Minneapolis <br/>
<a id="pl.184.18"></a><var>184.18</var>Employees Retirement Fund shall transfer assets to the city of Minneapolis equal to the <br/>
<a id="pl.184.19"></a><var>184.19</var>present value of any accumulated unused vacation or sick leave balances as of the date <br/>
<a id="pl.184.20"></a><var>184.20</var>of transfer.<br/>
<a id="pl.184.21"></a><var>184.21</var>(b) Unless the employee elects the severance pay option under paragraph (c), <br/>
<a id="pl.184.22"></a><var>184.22</var>full-time employees of the Minneapolis Employees Retirement Fund first employed before <br/>
<a id="pl.184.23"></a><var>184.23</var>June 30, 2008, and employed full time by the Minneapolis Employees Retirement Fund <br/>
<a id="pl.184.24"></a><var>184.24</var>on June 29, 2010, with the employment title of accounting manager or accountant II are <br/>
<a id="pl.184.25"></a><var>184.25</var>transferred to employment by the Public Employees Retirement Association on July 1, <br/>
<a id="pl.184.26"></a><var>184.26</var>2010. The chief human relations official of the Public Employees Retirement Association <br/>
<a id="pl.184.27"></a><var>184.27</var>shall place the transferred employee in an appropriate employment position based on the <br/>
<a id="pl.184.28"></a><var>184.28</var>employee's education and employment experience. Transferred employees must have <br/>
<a id="pl.184.29"></a><var>184.29</var>their accumulated, but unused, vacation and sick leave balances as of June 30, 2010, <br/>
<a id="pl.184.30"></a><var>184.30</var>posted to the individual accounts with the new employer. The transferred employees <br/>
<a id="pl.184.31"></a><var>184.31</var>must receive length of service credit for time served with the Minneapolis Employees <br/>
<a id="pl.184.32"></a><var>184.32</var>Retirement Fund. The transferred employee must be given the opportunity as of the <br/>
<a id="pl.184.33"></a><var>184.33</var>date of transfer to be covered for all health and other insurance benefits offered by the <br/>
<a id="pl.184.34"></a><var>184.34</var>new employer. Upon the transfer of the employee, the executive director of the Public <br/>
<a id="pl.184.35"></a><var>184.35</var>Employees Retirement Association shall deduct from any assets transferred under section <br/>
<a id="pl.185.1"></a><var>185.1</var>353.50 an amount equal to the present value of any accumulated unused vacation or sick <br/>
<a id="pl.185.2"></a><var>185.2</var>leave balances as of the date of transfer.<br/>
<a id="pl.185.3"></a><var>185.3</var>(c) An employee covered by paragraph (a) or (b) who elects not to transfer to the <br/>
<a id="pl.185.4"></a><var>185.4</var>new employer unit is granted severance pay in an amount equivalent to one year of salary <br/>
<a id="pl.185.5"></a><var>185.5</var>based on the last annual salary rate received by the employee. The election must be <br/>
<a id="pl.185.6"></a><var>185.6</var>made prior to June 30, 2010, and is irrevocable. The severance pay is payable from the <br/>
<a id="pl.185.7"></a><var>185.7</var>Minneapolis Employees Retirement Fund on June 30, 2010.<br/>
<br/>
<a id="bill.12.26.0"></a><a id="pl.185.8"></a><var>185.8</var>    Sec. 26. <b>REVISOR'S INSTRUCTION.</b><br/>
<a id="pl.185.9"></a><var>185.9</var>In the next and future editions of Minnesota Statutes, the revisor of statutes shall <br/>
<a id="pl.185.10"></a><var>185.10</var>renumber Minnesota Statutes, section 422A.101, subdivision 3, as Minnesota Statutes, <br/>
<a id="pl.185.11"></a><var>185.11</var>section 353.505, and shall renumber Minnesota Statutes, section 422A.26, as Minnesota <br/>
<a id="pl.185.12"></a><var>185.12</var>Statutes, section 353.855. The revisor of statutes shall make conforming changes in <br/>
<a id="pl.185.13"></a><var>185.13</var>Minnesota Statutes and Minnesota Rules consistent with the renumbering.<br/>
<br/>
<a id="bill.12.27.0"></a><a id="pl.185.14"></a><var>185.14</var>    Sec. 27. <b> REPEALER.</b><br/>
<a id="pl.185.15"></a><var>185.15</var>Minnesota Statutes 2008, sections 13.63, subdivision 1; 69.011, subdivision 2a; <br/>
<a id="pl.185.16"></a><var>185.16</var>356.43; 422A.01, subdivisions 1, 2, 3, 4, 4a, 5, 6, 7, 8, 9, 10, 11, 12, 13a, 17, and 18; <br/>
<a id="pl.185.17"></a><var>185.17</var>422A.02; 422A.03; 422A.04; 422A.05, subdivisions 1, 2a, 2b, 2c, 2d, 2e, 2f, 5, 6, <br/>
<a id="pl.185.18"></a><var>185.18</var>and 8; 422A.06, subdivisions 1, 2, 3, 5, 6, and 7; 422A.08, subdivision 1; 422A.09; <br/>
<a id="pl.185.19"></a><var>185.19</var>422A.10; 422A.101, subdivisions 1, 1a, 2, and 2a; 422A.11; 422A.12; 422A.13; 422A.14, <br/>
<a id="pl.185.20"></a><var>185.20</var>subdivision 1; 422A.15; 422A.151; 422A.155; 422A.156; 422A.16, subdivisions 1, 2, 3, <br/>
<a id="pl.185.21"></a><var>185.21</var>4, 5, 6, 7, 8, 9, and 10; 422A.17; 422A.18, subdivisions 1, 2, 3, 4, 5, and 7; 422A.19; <br/>
<a id="pl.185.22"></a><var>185.22</var>422A.20; 422A.21; 422A.22, subdivisions 1, 3, 4, and 6; 422A.23, subdivisions 1, 2, 5, 6, <br/>
<a id="pl.185.23"></a><var>185.23</var>7, 8, 9, 10, 11, and 12; 422A.231; 422A.24; and 422A.25, are repealed.<br/>
<a id="pl.185.24"></a><var>185.24</var>Minnesota Statutes 2009 Supplement, sections 422A.06, subdivision 8; and <br/>
<a id="pl.185.25"></a><var>185.25</var>422A.08, subdivision 5, are repealed.<br/>
<br/>
<a id="bill.12.28.0"></a><a id="pl.185.26"></a><var>185.26</var>    Sec. 28. <b>EFFECTIVE DATE.</b><br/>
<a id="pl.185.27"></a><var>185.27</var>Sections 1 to 27 are effective June 30, 2010.<br/>
<br/>
<a id="bill.13.0.0"></a>

<a id="pl.185.30"></a><var>185.30</var><b>ADMINISTRATIVE CONSOLIDATION</b><br/>

<a id="bill.13.1.0"></a><a id="pl.185.31"></a><var>185.31</var>    Section 1. Minnesota Statutes 2009 Supplement, section 6.67, is amended to read:<br/>
<a id="pl.185.32"></a><var>185.32</var><b>6.67 PUBLIC ACCOUNTANTS; REPORT OF POSSIBLE MISCONDUCT.</b><br/>
<a id="pl.186.1"></a><var>186.1</var>    Whenever a public accountant in the course of auditing the books and affairs of a <br/>
<a id="pl.186.2"></a><var>186.2</var>political subdivision or a local public pension plan governed by section 
         <statute_ref>69.77</statute_ref>, sections <br/>
<statute_ref><a id="pl.186.3"></a><var>186.3</var>69.771
         </statute_ref> to 
         <statute_ref>69.775</statute_ref>, or chapter 354A, 422A, 423B, 423C, or 424A, discovers evidence <br/>
<a id="pl.186.4"></a><var>186.4</var>pointing to nonfeasance, misfeasance, or malfeasance, on the part of an officer or <br/>
<a id="pl.186.5"></a><var>186.5</var>employee in the conduct of duties and affairs, the public accountant shall promptly make <br/>
<a id="pl.186.6"></a><var>186.6</var>a report of such discovery to the state auditor and the county attorney of the county in <br/>
<a id="pl.186.7"></a><var>186.7</var>which the governmental unit is situated and the public accountant shall also furnish a <br/>
<a id="pl.186.8"></a><var>186.8</var>copy of the report of audit upon completion to said officers. The county attorney shall <br/>
<a id="pl.186.9"></a><var>186.9</var>act on such report in the same manner as required by law for reports made to the county <br/>
<a id="pl.186.10"></a><var>186.10</var>attorney by the state auditor.<br/>
<br/>
<a id="bill.13.2.0"></a><a id="pl.186.11"></a><var>186.11</var>    Sec. 2. Minnesota Statutes 2008, section 11A.23, subdivision 4, is amended to read:<br/>
<a id="pl.186.12"></a><var>186.12</var>    Subd. 4. <b>Covered retirement funds and plans.</b> The provisions of this section shall <br/>
<a id="pl.186.13"></a><var>186.13</var>apply to the following retirement funds and plans:<br/>
<a id="pl.186.14"></a><var>186.14</var>(1) Board of Trustees of the Minnesota State Colleges and Universities supplemental <br/>
<a id="pl.186.15"></a><var>186.15</var>retirement plan established under chapter 354C;<br/>
<a id="pl.186.16"></a><var>186.16</var>(2) state employees retirement fund established pursuant to chapter 352;<br/>
<a id="pl.186.17"></a><var>186.17</var>(3) correctional employees retirement plan established pursuant to chapter 352;<br/>
<a id="pl.186.18"></a><var>186.18</var>(4) State Patrol retirement fund established pursuant to chapter 352B;<br/>
<a id="pl.186.19"></a><var>186.19</var>(5) unclassified employees retirement plan established pursuant to chapter 352D;<br/>
<a id="pl.186.20"></a><var>186.20</var>(6) public general employees retirement fund established pursuant to chapter 353;<br/>
<a id="pl.186.21"></a><var>186.21</var>(7) public employees police and fire fund established pursuant to chapter 353;<br/>
<a id="pl.186.22"></a><var>186.22</var>(8) teachers' retirement fund established pursuant to chapter 354;<br/>
<a id="pl.186.23"></a><var>186.23</var>(9) judges' retirement fund established pursuant to chapter 490; and<br/>
<a id="pl.186.24"></a><var>186.24</var>(10) any other funds required by law to be invested by the board.<br/>
<br/>
<a id="bill.13.3.0"></a><a id="pl.186.25"></a><var>186.25</var>    Sec. 3. Minnesota Statutes 2008, section 13D.01, subdivision 1, is amended to read:<br/>
<a id="pl.186.26"></a><var>186.26</var>    Subdivision 1. <b>In executive branch, local government.</b> All meetings, including <br/>
<a id="pl.186.27"></a><var>186.27</var>executive sessions, must be open to the public<br/>
<a id="pl.186.28"></a><var>186.28</var>(a) of a state<br/>
<a id="pl.186.29"></a><var>186.29</var>(1) agency,<br/>
<a id="pl.186.30"></a><var>186.30</var>(2) board,<br/>
<a id="pl.186.31"></a><var>186.31</var>(3) commission, or<br/>
<a id="pl.186.32"></a><var>186.32</var>(4) department,<br/>
<a id="pl.186.33"></a><var>186.33</var>when required or permitted by law to transact public business in a meeting;<br/>
<a id="pl.186.34"></a><var>186.34</var>(b) of the governing body of a<br/>
<a id="pl.187.1"></a><var>187.1</var>(1) school district however organized,<br/>
<a id="pl.187.2"></a><var>187.2</var>(2) unorganized territory,<br/>
<a id="pl.187.3"></a><var>187.3</var>(3) county,<br/>
<a id="pl.187.4"></a><var>187.4</var>(4) statutory or home rule charter city,<br/>
<a id="pl.187.5"></a><var>187.5</var>(5) town, or<br/>
<a id="pl.187.6"></a><var>187.6</var>(6) other public body;<br/>
<a id="pl.187.7"></a><var>187.7</var>(c) of any<br/>
<a id="pl.187.8"></a><var>187.8</var>(1) committee,<br/>
<a id="pl.187.9"></a><var>187.9</var>(2) subcommittee,<br/>
<a id="pl.187.10"></a><var>187.10</var>(3) board,<br/>
<a id="pl.187.11"></a><var>187.11</var>(4) department, or<br/>
<a id="pl.187.12"></a><var>187.12</var>(5) commission,<br/>
<a id="pl.187.13"></a><var>187.13</var>of a public body; and<br/>
<a id="pl.187.14"></a><var>187.14</var>(d) of the governing body or a committee of:<br/>
<a id="pl.187.15"></a><var>187.15</var>(1) a statewide public pension plan defined in section 
         <statute_ref>356A.01, subdivision 24</statute_ref>; or  <br/>
<a id="pl.187.16"></a><var>187.16</var>(2) a local public pension plan governed by section 
         <statute_ref>69.77</statute_ref>, sections 
         <statute_ref>69.771</statute_ref> to 
         <statute_ref>69.775</statute_ref>, <br/>
<a id="pl.187.17"></a><var>187.17</var>or chapter 354A, 422A, or 423B.  <br/>
<br/>
<a id="bill.13.4.0"></a><a id="pl.187.18"></a><var>187.18</var>    Sec. 4. Minnesota Statutes 2008, section 43A.17, subdivision 9, is amended to read:<br/>
<a id="pl.187.19"></a><var>187.19</var>    Subd. 9. <b>Political subdivision compensation limit.</b> (a) The salary and the value of <br/>
<a id="pl.187.20"></a><var>187.20</var>all other forms of compensation of a person employed by a political subdivision of this <br/>
<a id="pl.187.21"></a><var>187.21</var>state, excluding a school district, or employed under section 
<statute_ref>422A.03</statute_ref> may not exceed 110 <br/>
<a id="pl.187.22"></a><var>187.22</var>percent of the salary of the governor as set under section 
         <statute_ref>15A.082</statute_ref>, except as provided <br/>
<a id="pl.187.23"></a><var>187.23</var>in this subdivision. For purposes of this subdivision, "political subdivision of this state" <br/>
<a id="pl.187.24"></a><var>187.24</var>includes a statutory or home rule charter city, county, town, metropolitan or regional <br/>
<a id="pl.187.25"></a><var>187.25</var>agency, or other political subdivision, but does not include a hospital, clinic, or health <br/>
<a id="pl.187.26"></a><var>187.26</var>maintenance organization owned by such a governmental unit.<br/>
<a id="pl.187.27"></a><var>187.27</var>(b) Beginning in 2006, the limit in paragraph (a) shall must be adjusted annually in <br/>
<a id="pl.187.28"></a><var>187.28</var>January. The limit shall must equal the limit for the prior year increased by the percentage <br/>
<a id="pl.187.29"></a><var>187.29</var>increase, if any, in the Consumer Price Index for all-urban consumers from October of the <br/>
<a id="pl.187.30"></a><var>187.30</var>second prior year to October of the immediately prior year.<br/>
<a id="pl.187.31"></a><var>187.31</var>(c) Deferred compensation and payroll allocations to purchase an individual annuity <br/>
<a id="pl.187.32"></a><var>187.32</var>contract for an employee are included in determining the employee's salary. Other forms of <br/>
<a id="pl.187.33"></a><var>187.33</var>compensation which shall must be included to determine an employee's total compensation <br/>
<a id="pl.187.34"></a><var>187.34</var>are all other direct and indirect items of compensation which are not specifically excluded <br/>
<a id="pl.188.1"></a><var>188.1</var>by this subdivision. Other forms of compensation which shall must not be included in a <br/>
<a id="pl.188.2"></a><var>188.2</var>determination of an employee's total compensation for the purposes of this subdivision are:<br/>
<a id="pl.188.3"></a><var>188.3</var>(1) employee benefits that are also provided for the majority of all other full-time <br/>
<a id="pl.188.4"></a><var>188.4</var>employees of the political subdivision, vacation and sick leave allowances, health and <br/>
<a id="pl.188.5"></a><var>188.5</var>dental insurance, disability insurance, term life insurance, and pension benefits or like <br/>
<a id="pl.188.6"></a><var>188.6</var>benefits the cost of which is borne by the employee or which is not subject to tax as <br/>
<a id="pl.188.7"></a><var>188.7</var>income under the Internal Revenue Code of 1986;<br/>
<a id="pl.188.8"></a><var>188.8</var>(2) dues paid to organizations that are of a civic, professional, educational, or <br/>
<a id="pl.188.9"></a><var>188.9</var>governmental nature; and<br/>
<a id="pl.188.10"></a><var>188.10</var>(3) reimbursement for actual expenses incurred by the employee which the <br/>
<a id="pl.188.11"></a><var>188.11</var>governing body determines to be directly related to the performance of job responsibilities, <br/>
<a id="pl.188.12"></a><var>188.12</var>including any relocation expenses paid during the initial year of employment.<br/>
<a id="pl.188.13"></a><var>188.13</var>The value of other forms of compensation shall be is the annual cost to the political <br/>
<a id="pl.188.14"></a><var>188.14</var>subdivision for the provision of the compensation.<br/>
<a id="pl.188.15"></a><var>188.15</var>(d) The salary of a medical doctor or doctor of osteopathy occupying a position that <br/>
<a id="pl.188.16"></a><var>188.16</var>the governing body of the political subdivision has determined requires an M.D. or D.O. <br/>
<a id="pl.188.17"></a><var>188.17</var>degree is excluded from the limitation in this subdivision.<br/>
<a id="pl.188.18"></a><var>188.18</var>(e) The commissioner may increase the limitation in this subdivision for a position <br/>
<a id="pl.188.19"></a><var>188.19</var>that the commissioner has determined requires special expertise necessitating a higher <br/>
<a id="pl.188.20"></a><var>188.20</var>salary to attract or retain a qualified person. The commissioner shall review each proposed <br/>
<a id="pl.188.21"></a><var>188.21</var>increase giving due consideration to salary rates paid to other persons with similar <br/>
<a id="pl.188.22"></a><var>188.22</var>responsibilities in the state and nation. The commissioner may not increase the limitation <br/>
<a id="pl.188.23"></a><var>188.23</var>until the commissioner has presented the proposed increase to the Legislative Coordinating <br/>
<a id="pl.188.24"></a><var>188.24</var>Commission and received the commission's recommendation on it. The recommendation <br/>
<a id="pl.188.25"></a><var>188.25</var>is advisory only. If the commission does not give its recommendation on a proposed <br/>
<a id="pl.188.26"></a><var>188.26</var>increase within 30 days from its receipt of the proposal, the commission is deemed to have <br/>
<a id="pl.188.27"></a><var>188.27</var>made no recommendation. If the commissioner grants or granted an increase under this <br/>
<a id="pl.188.28"></a><var>188.28</var>paragraph, the new limitation shall must be adjusted beginning in August 2005 and in each <br/>
<a id="pl.188.29"></a><var>188.29</var>subsequent calendar year in January by the percentage increase equal to the percentage <br/>
<a id="pl.188.30"></a><var>188.30</var>increase, if any, in the Consumer Price Index for all-urban consumers from October of the <br/>
<a id="pl.188.31"></a><var>188.31</var>second prior year to October of the immediately prior year.<br/>
<br/>
<a id="bill.13.5.0"></a><a id="pl.188.32"></a><var>188.32</var>    Sec. 5. Minnesota Statutes 2008, section 43A.316, subdivision 8, is amended to read:<br/>
<a id="pl.188.33"></a><var>188.33</var>    Subd. 8. <b>Continuation of coverage.</b> (a) A former employee of an employer <br/>
<a id="pl.188.34"></a><var>188.34</var>participating in the program who is receiving a public pension disability benefit or an <br/>
<a id="pl.188.35"></a><var>188.35</var>annuity or has met the age and service requirements necessary to receive an annuity under <br/>
<a id="pl.189.1"></a><var>189.1</var>chapter 353, 353C, 354, 354A, 356, 422A, 423, 423A, or 424, or Minnesota Statutes <br/>
<a id="pl.189.2"></a><var>189.2</var>2008, chapter 422A, and the former employee's dependents, are eligible to participate in <br/>
<a id="pl.189.3"></a><var>189.3</var>the program. This participation is at the person's expense unless a collective bargaining <br/>
<a id="pl.189.4"></a><var>189.4</var>agreement or personnel policy provides otherwise. Premiums for these participants must <br/>
<a id="pl.189.5"></a><var>189.5</var>be established by the commissioner.<br/>
<a id="pl.189.6"></a><var>189.6</var>The commissioner may provide policy exclusions for preexisting conditions <br/>
<a id="pl.189.7"></a><var>189.7</var>only when there is a break in coverage between a participant's coverage under the <br/>
<a id="pl.189.8"></a><var>189.8</var>employment-based group insurance program and the participant's coverage under this <br/>
<a id="pl.189.9"></a><var>189.9</var>section. An employer shall notify an employee of the option to participate under this <br/>
<a id="pl.189.10"></a><var>189.10</var>paragraph no later than the effective date of retirement. The retired employee or the <br/>
<a id="pl.189.11"></a><var>189.11</var>employer of a participating group on behalf of a current or retired employee shall notify <br/>
<a id="pl.189.12"></a><var>189.12</var>the commissioner within 30 days of the effective date of retirement of intent to participate <br/>
<a id="pl.189.13"></a><var>189.13</var>in the program according to the rules established by the commissioner.<br/>
<a id="pl.189.14"></a><var>189.14</var>(b) The spouse of a deceased employee or former employee may purchase the <br/>
<a id="pl.189.15"></a><var>189.15</var>benefits provided at premiums established by the commissioner if the spouse was a <br/>
<a id="pl.189.16"></a><var>189.16</var>dependent under the employee's or former employee's coverage under this section at the <br/>
<a id="pl.189.17"></a><var>189.17</var>time of the death. The spouse remains eligible to participate in the program as long as <br/>
<a id="pl.189.18"></a><var>189.18</var>the group that included the deceased employee or former employee participates in the <br/>
<a id="pl.189.19"></a><var>189.19</var>program. Coverage under this clause must be coordinated with relevant insurance benefits <br/>
<a id="pl.189.20"></a><var>189.20</var>provided through the federally sponsored Medicare program.<br/>
<a id="pl.189.21"></a><var>189.21</var>(c) The program benefits must continue in the event of strike permitted by section <br/>
<statute_ref><a id="pl.189.22"></a><var>189.22</var>179A.18
         </statute_ref>, if the exclusive representative chooses to have coverage continue and the <br/>
<a id="pl.189.23"></a><var>189.23</var>employee pays the total monthly premiums when due. <br/>
<a id="pl.189.24"></a><var>189.24</var>(d) A participant who discontinues coverage may not reenroll.<br/>
<a id="pl.189.25"></a><var>189.25</var>Persons participating under these paragraphs shall make appropriate premium <br/>
<a id="pl.189.26"></a><var>189.26</var>payments in the time and manner established by the commissioner.<br/>
<br/>
<a id="bill.13.6.0"></a><a id="pl.189.27"></a><var>189.27</var>    Sec. 6. Minnesota Statutes 2009 Supplement, section 69.011, subdivision 1, is <br/>
<a id="pl.189.28"></a><var>189.28</var>amended to read:<br/>
<a id="pl.189.29"></a><var>189.29</var>    Subdivision 1. <b>Definitions.</b> Unless the language or context clearly indicates that <br/>
<a id="pl.189.30"></a><var>189.30</var>a different meaning is intended, the following words and terms, for the purposes of this <br/>
<a id="pl.189.31"></a><var>189.31</var>chapter and chapters 423, 423A, 424 and 424A, have the meanings ascribed to them:<br/>
<a id="pl.189.32"></a><var>189.32</var>    (a) "Commissioner" means the commissioner of revenue.<br/>
<a id="pl.189.33"></a><var>189.33</var>    (b) "Municipality" means:<br/>
<a id="pl.189.34"></a><var>189.34</var>    (1) a home rule charter or statutory city;<br/>
<a id="pl.189.35"></a><var>189.35</var>    (2) an organized town;<br/>
<a id="pl.190.1"></a><var>190.1</var>    (3) a park district subject to chapter 398;<br/>
<a id="pl.190.2"></a><var>190.2</var>    (4) the University of Minnesota;<br/>
<a id="pl.190.3"></a><var>190.3</var>    (5) for purposes of the fire state aid program only, an American Indian tribal <br/>
<a id="pl.190.4"></a><var>190.4</var>government entity located within a federally recognized American Indian reservation;<br/>
<a id="pl.190.5"></a><var>190.5</var>    (6) for purposes of the police state aid program only, an American Indian tribal <br/>
<a id="pl.190.6"></a><var>190.6</var>government with a tribal police department which exercises state arrest powers under <br/>
<a id="pl.190.7"></a><var>190.7</var>section 
         <statute_ref>626.90</statute_ref>, 
         <statute_ref>626.91</statute_ref>, 
         <statute_ref>626.92</statute_ref>, or 
         <statute_ref>626.93</statute_ref>; <br/>
<a id="pl.190.8"></a><var>190.8</var>    (7) for purposes of the police state aid program only, the Metropolitan Airports <br/>
<a id="pl.190.9"></a><var>190.9</var>Commission with respect to peace officers covered under chapter 422A; and<br/>
<a id="pl.190.10"></a><var>190.10</var>    (8) for purposes of the police state aid program only, the Department of Natural <br/>
<a id="pl.190.11"></a><var>190.11</var>Resources and the Department of Public Safety with respect to peace officers covered <br/>
<a id="pl.190.12"></a><var>190.12</var>under chapter 352B.<br/>
<a id="pl.190.13"></a><var>190.13</var>    (c) "Minnesota Firetown Premium Report" means a form prescribed by the <br/>
<a id="pl.190.14"></a><var>190.14</var>commissioner containing space for reporting by insurers of fire, lightning, sprinkler <br/>
<a id="pl.190.15"></a><var>190.15</var>leakage and extended coverage premiums received upon risks located or to be performed <br/>
<a id="pl.190.16"></a><var>190.16</var>in this state less return premiums and dividends.<br/>
<a id="pl.190.17"></a><var>190.17</var>    (d) "Firetown" means the area serviced by any municipality having a qualified fire <br/>
<a id="pl.190.18"></a><var>190.18</var>department or a qualified incorporated fire department having a subsidiary volunteer <br/>
<a id="pl.190.19"></a><var>190.19</var>firefighters' relief association.<br/>
<a id="pl.190.20"></a><var>190.20</var>    (e) "Market value" means latest available market value of all property in a taxing <br/>
<a id="pl.190.21"></a><var>190.21</var>jurisdiction, whether the property is subject to taxation, or exempt from ad valorem <br/>
<a id="pl.190.22"></a><var>190.22</var>taxation obtained from information which appears on abstracts filed with the commissioner <br/>
<a id="pl.190.23"></a><var>190.23</var>of revenue or equalized by the State Board of Equalization.<br/>
<a id="pl.190.24"></a><var>190.24</var>    (f) "Minnesota Aid to Police Premium Report" means a form prescribed by the <br/>
<a id="pl.190.25"></a><var>190.25</var>commissioner for reporting by each fire and casualty insurer of all premiums received <br/>
<a id="pl.190.26"></a><var>190.26</var>upon direct business received by it in this state, or by its agents for it, in cash or otherwise, <br/>
<a id="pl.190.27"></a><var>190.27</var>during the preceding calendar year, with reference to insurance written for insuring against <br/>
<a id="pl.190.28"></a><var>190.28</var>the perils contained in auto insurance coverages as reported in the Minnesota business <br/>
<a id="pl.190.29"></a><var>190.29</var>schedule of the annual financial statement which each insurer is required to file with <br/>
<a id="pl.190.30"></a><var>190.30</var>the commissioner in accordance with the governing laws or rules less return premiums <br/>
<a id="pl.190.31"></a><var>190.31</var>and dividends.<br/>
<a id="pl.190.32"></a><var>190.32</var>    (g) "Peace officer" means any person:<br/>
<a id="pl.190.33"></a><var>190.33</var>    (1) whose primary source of income derived from wages is from direct employment <br/>
<a id="pl.190.34"></a><var>190.34</var>by a municipality or county as a law enforcement officer on a full-time basis of not less <br/>
<a id="pl.190.35"></a><var>190.35</var>than 30 hours per week;<br/>
<a id="pl.191.1"></a><var>191.1</var>    (2) who has been employed for a minimum of six months prior to December 31 <br/>
<a id="pl.191.2"></a><var>191.2</var>preceding the date of the current year's certification under subdivision 2, clause (b);<br/>
<a id="pl.191.3"></a><var>191.3</var>    (3) who is sworn to enforce the general criminal laws of the state and local <br/>
<a id="pl.191.4"></a><var>191.4</var>ordinances;<br/>
<a id="pl.191.5"></a><var>191.5</var>    (4) who is licensed by the Peace Officers Standards and Training Board and is <br/>
<a id="pl.191.6"></a><var>191.6</var>authorized to arrest with a warrant; and<br/>
<a id="pl.191.7"></a><var>191.7</var>    (5) who is a member of a local police relief association to which section 
<statute_ref>69.77 <br/>
<a id="pl.191.8"></a><var>191.8</var></statute_ref>applies the Minneapolis Police Relief Association, the State Patrol retirement plan, or the <br/>
<a id="pl.191.9"></a><var>191.9</var>public employees police and fire fund, or the Minneapolis Employees Retirement Fund. <br/>
<a id="pl.191.10"></a><var>191.10</var>    (h) "Full-time equivalent number of peace officers providing contract service" means <br/>
<a id="pl.191.11"></a><var>191.11</var>the integral or fractional number of peace officers which would be necessary to provide <br/>
<a id="pl.191.12"></a><var>191.12</var>the contract service if all peace officers providing service were employed on a full-time <br/>
<a id="pl.191.13"></a><var>191.13</var>basis as defined by the employing unit and the municipality receiving the contract service.<br/>
<a id="pl.191.14"></a><var>191.14</var>    (i) "Retirement benefits other than a service pension" means any disbursement <br/>
<a id="pl.191.15"></a><var>191.15</var>authorized under section 
         <statute_ref>424A.05, subdivision 3</statute_ref>, clauses (2) and (3). <br/>
<a id="pl.191.16"></a><var>191.16</var>    (j) "Municipal clerk, municipal clerk-treasurer, or county auditor" means the person <br/>
<a id="pl.191.17"></a><var>191.17</var>who was elected or appointed to the specified position or, in the absence of the person, <br/>
<a id="pl.191.18"></a><var>191.18</var>another person who is designated by the applicable governing body. In a park district, <br/>
<a id="pl.191.19"></a><var>191.19</var>the clerk is the secretary of the board of park district commissioners. In the case of the <br/>
<a id="pl.191.20"></a><var>191.20</var>University of Minnesota, the clerk is that official designated by the Board of Regents. <br/>
<a id="pl.191.21"></a><var>191.21</var>For the Metropolitan Airports Commission, the clerk is the person designated by the <br/>
<a id="pl.191.22"></a><var>191.22</var>commission. For the Department of Natural Resources or the Department of Public Safety, <br/>
<a id="pl.191.23"></a><var>191.23</var>the clerk is the respective commissioner. For a tribal police department which exercises <br/>
<a id="pl.191.24"></a><var>191.24</var>state arrest powers under section 
         <statute_ref>626.90</statute_ref>, 
         <statute_ref>626.91</statute_ref>, 
         <statute_ref>626.92</statute_ref>, or 
         <statute_ref>626.93</statute_ref>, the clerk is the person <br/>
<a id="pl.191.25"></a><var>191.25</var>designated by the applicable American Indian tribal government. <br/>
<a id="pl.191.26"></a><var>191.26</var>(k) "Voluntary statewide lump-sum volunteer firefighter retirement plan" means the <br/>
<a id="pl.191.27"></a><var>191.27</var>retirement plan established by chapter 353G.<br/>
<br/>
<a id="bill.13.7.0"></a><a id="pl.191.28"></a><var>191.28</var>    Sec. 7. Minnesota Statutes 2008, section 69.021, subdivision 10, is amended to read:<br/>
<a id="pl.191.29"></a><var>191.29</var>    Subd. 10. <b>Reduction in police state aid apportionment.</b> (a) The commissioner of <br/>
<a id="pl.191.30"></a><var>191.30</var>revenue shall reduce the apportionment of police state aid under subdivisions 5, paragraph <br/>
<a id="pl.191.31"></a><var>191.31</var>(b), 6, and 7a, for eligible employer units by any excess police state aid.<br/>
<a id="pl.191.32"></a><var>191.32</var>(b)  "Excess police state aid" is:<br/>
<a id="pl.191.33"></a><var>191.33</var>(1) for counties and for municipalities in which police retirement coverage is <br/>
<a id="pl.191.34"></a><var>191.34</var>provided wholly by the public employees police and fire fund and all police officers are <br/>
<a id="pl.191.35"></a><var>191.35</var>members of the plan governed by sections 
         <statute_ref>353.63</statute_ref> to 
         <statute_ref>353.657</statute_ref>, the amount in excess of the <br/>
<a id="pl.192.1"></a><var>192.1</var>employer's total prior calendar year obligation as defined in paragraph (c), as certified by <br/>
<a id="pl.192.2"></a><var>192.2</var>the executive director of the Public Employees Retirement Association; <br/>
<a id="pl.192.3"></a><var>192.3</var>(2) for municipalities in which police retirement coverage is provided in part by the <br/>
<a id="pl.192.4"></a><var>192.4</var>public employees police and fire fund governed by sections 
         <statute_ref>353.63</statute_ref> to 
         <statute_ref>353.657</statute_ref> and in <br/>
<a id="pl.192.5"></a><var>192.5</var>part by a local police consolidation account governed by chapter 353A, and established <br/>
<a id="pl.192.6"></a><var>192.6</var>before March 2, 1999, for which the municipality declined merger under section 
         <statute_ref>353.665, <br/>
<a id="pl.192.7"></a><var>192.7</var>subdivision 1
         </statute_ref>, or established after March 1, 1999, the amount in excess of the employer's <br/>
<a id="pl.192.8"></a><var>192.8</var>total prior calendar year obligation as defined in paragraph (c), plus the amount of the <br/>
<a id="pl.192.9"></a><var>192.9</var>employer's total prior calendar year obligation under section 
         <statute_ref>353A.09, subdivision 5</statute_ref>, <br/>
<a id="pl.192.10"></a><var>192.10</var>paragraphs (a) and (b), as certified by the executive director of the Public Employees <br/>
<a id="pl.192.11"></a><var>192.11</var>Retirement Association; <br/>
<a id="pl.192.12"></a><var>192.12</var>(3)  for municipalities in which police retirement coverage is provided by the public <br/>
<a id="pl.192.13"></a><var>192.13</var>employees police and fire plan governed by sections 
         <statute_ref>353.63</statute_ref> to 
         <statute_ref>353.657</statute_ref>, in which police <br/>
<a id="pl.192.14"></a><var>192.14</var>retirement coverage was provided by a police consolidation account under chapter <br/>
<a id="pl.192.15"></a><var>192.15</var>353A before July 1, 1999, and for which the municipality has an additional municipal <br/>
<a id="pl.192.16"></a><var>192.16</var>contribution under section 
         <statute_ref>353.665, subdivision 8</statute_ref>, paragraph (b), the amount in excess of <br/>
<a id="pl.192.17"></a><var>192.17</var>the employer's total prior calendar year obligation as defined in paragraph (c), plus the <br/>
<a id="pl.192.18"></a><var>192.18</var>amount of any additional municipal contribution under section 
         <statute_ref>353.665, subdivision 8</statute_ref>, <br/>
<a id="pl.192.19"></a><var>192.19</var>paragraph (b), until the year 2010, as certified by the executive director of the Public <br/>
<a id="pl.192.20"></a><var>192.20</var>Employees Retirement Association; <br/>
<a id="pl.192.21"></a><var>192.21</var>(4) for municipalities in which police retirement coverage is provided in part by the <br/>
<a id="pl.192.22"></a><var>192.22</var>public employees police and fire fund governed by sections 
         <statute_ref>353.63</statute_ref> to 
         <statute_ref>353.657</statute_ref> and in part <br/>
<a id="pl.192.23"></a><var>192.23</var>by a local police relief association governed by sections 
         <statute_ref>69.77</statute_ref> and 
         <statute_ref>423A.01</statute_ref>, the amount <br/>
<a id="pl.192.24"></a><var>192.24</var>in excess of the employer's total prior calendar year obligation as defined in paragraph <br/>
<a id="pl.192.25"></a><var>192.25</var>(c), as certified by the executive director of the public employees retirement association, <br/>
<a id="pl.192.26"></a><var>192.26</var>plus the amount of the financial requirements of the relief association certified to the <br/>
<a id="pl.192.27"></a><var>192.27</var>applicable municipality during the prior calendar year under section 69.77, subdivisions 4 <br/>
<a id="pl.192.28"></a><var>192.28</var>and 5, reduced by the amount of member contributions deducted from the covered salary <br/>
<a id="pl.192.29"></a><var>192.29</var>of the relief association during the prior calendar year under section 
         <statute_ref>69.77, subdivision 3</statute_ref>, <br/>
<a id="pl.192.30"></a><var>192.30</var>as certified by the chief administrative officer of the applicable municipality; <br/>
<a id="pl.192.31"></a><var>192.31</var>(5) for the Metropolitan Airports Commission, if there are police officers hired <br/>
<a id="pl.192.32"></a><var>192.32</var>before July 1, 1978, with retirement coverage by the Minneapolis Employees Retirement <br/>
<a id="pl.192.33"></a><var>192.33</var>Fund remaining, the amount in excess of the commission's total prior calendar year <br/>
<a id="pl.192.34"></a><var>192.34</var>obligation as defined in paragraph (c), as certified by the executive director of the Public <br/>
<a id="pl.192.35"></a><var>192.35</var>Employees Retirement Association, plus the amount determined by expressing the <br/>
<a id="pl.192.36"></a><var>192.36</var>commission's total prior calendar year contribution to the Minneapolis Employees <br/>
<a id="pl.193.1"></a><var>193.1</var>Retirement Fund under section 422A.101, subdivisions 2 and 2a, as a percentage of <br/>
<a id="pl.193.2"></a><var>193.2</var>the commission's total prior calendar year covered payroll for commission employees <br/>
<a id="pl.193.3"></a><var>193.3</var>covered by the Minneapolis Employees Retirement Fund and applying that percentage <br/>
<a id="pl.193.4"></a><var>193.4</var>to the commission's total prior calendar year covered payroll for commission police <br/>
<a id="pl.193.5"></a><var>193.5</var>officers covered by the Minneapolis Employees Retirement Fund, as certified by the chief <br/>
<a id="pl.193.6"></a><var>193.6</var>administrative officer of the Metropolitan Airports Commission; and <br/>
<a id="pl.193.7"></a><var>193.7</var>(6) for the Department of Natural Resources and for the Department of Public <br/>
<a id="pl.193.8"></a><var>193.8</var>Safety, the amount in excess of the employer's total prior calendar year obligation under <br/>
<a id="pl.193.9"></a><var>193.9</var>section 
         <statute_ref>352B.02, subdivision 1c</statute_ref>, for plan members who are peace officers under section <br/>
<statute_ref><a id="pl.193.10"></a><var>193.10</var>69.011, subdivision 1
         </statute_ref>, clause (g), as certified by the executive director of the Minnesota <br/>
<a id="pl.193.11"></a><var>193.11</var>State Retirement System. <br/>
<a id="pl.193.12"></a><var>193.12</var>(c) The employer's total prior calendar year obligation with respect to the public <br/>
<a id="pl.193.13"></a><var>193.13</var>employees police and fire plan is the total prior calendar year obligation under section <br/>
<statute_ref><a id="pl.193.14"></a><var>193.14</var>353.65, subdivision 3
         </statute_ref>, for police officers as defined in section 
         <statute_ref>353.64, subdivision 2</statute_ref>, <br/>
<a id="pl.193.15"></a><var>193.15</var>and the actual total prior calendar year obligation under section 
         <statute_ref>353.65, subdivision 3</statute_ref>, <br/>
<a id="pl.193.16"></a><var>193.16</var>for firefighters, as defined in section 
         <statute_ref>353.64, subdivision 3</statute_ref>, but not to exceed for those <br/>
<a id="pl.193.17"></a><var>193.17</var>firefighters the applicable following amounts: <br/>
<table>
<col width="50px"/>
<col width="5"/>
<col width="35"/>
<col width="15"/>
<col width="10"/>
<tr>
<td><a id="pl.193.18"></a><var>193.18</var><br/>
</td>
<td></td>
<td>Municipality<br/>
</td>
<td align="right">Maximum Amount<br/>
</td>
<td></td>
</tr>
<tr>
<td></td>
<td></td>
<td></td>
<td align="right"></td>
<td align="right"></td>
</tr>
<tr>
<td><a id="pl.193.19"></a><var>193.19</var><br/>
</td>
<td></td>
<td>Albert Lea<br/>
</td>
<td align="right">$54,157.01<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.193.20"></a><var>193.20</var><br/>
</td>
<td></td>
<td>Anoka<br/>
</td>
<td align="right">10,399.31<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.193.21"></a><var>193.21</var><br/>
</td>
<td></td>
<td>Apple Valley<br/>
</td>
<td align="right">5,442.44<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.193.22"></a><var>193.22</var><br/>
</td>
<td></td>
<td>Austin<br/>
</td>
<td align="right">49,864.73<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.193.23"></a><var>193.23</var><br/>
</td>
<td></td>
<td>Bemidji<br/>
</td>
<td align="right">27,671.38<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.193.24"></a><var>193.24</var><br/>
</td>
<td></td>
<td>Brooklyn Center<br/>
</td>
<td align="right">6,605.92<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.193.25"></a><var>193.25</var><br/>
</td>
<td></td>
<td>Brooklyn Park<br/>
</td>
<td align="right">24,002.26<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.193.26"></a><var>193.26</var><br/>
</td>
<td></td>
<td>Burnsville<br/>
</td>
<td align="right">15,956.00<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.193.27"></a><var>193.27</var><br/>
</td>
<td></td>
<td>Cloquet<br/>
</td>
<td align="right">4,260.49<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.193.28"></a><var>193.28</var><br/>
</td>
<td></td>
<td>Coon Rapids<br/>
</td>
<td align="right">39,920.00<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.193.29"></a><var>193.29</var><br/>
</td>
<td></td>
<td>Cottage Grove<br/>
</td>
<td align="right">8,588.48<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.193.30"></a><var>193.30</var><br/>
</td>
<td></td>
<td>Crystal<br/>
</td>
<td align="right">5,855.00<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.193.31"></a><var>193.31</var><br/>
</td>
<td></td>
<td>East Grand Forks<br/>
</td>
<td align="right">51,009.88<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.193.32"></a><var>193.32</var><br/>
</td>
<td></td>
<td>Edina<br/>
</td>
<td align="right">32,251.00<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.193.33"></a><var>193.33</var><br/>
</td>
<td></td>
<td>Elk River<br/>
</td>
<td align="right">5,216.55<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.193.34"></a><var>193.34</var><br/>
</td>
<td></td>
<td>Ely<br/>
</td>
<td align="right">13,584.16<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.193.35"></a><var>193.35</var><br/>
</td>
<td></td>
<td>Eveleth<br/>
</td>
<td align="right">16,288.27<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.193.36"></a><var>193.36</var><br/>
</td>
<td></td>
<td>Fergus Falls<br/>
</td>
<td align="right">6,742.00<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.193.37"></a><var>193.37</var><br/>
</td>
<td></td>
<td>Fridley<br/>
</td>
<td align="right">33,420.64<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.193.38"></a><var>193.38</var><br/>
</td>
<td></td>
<td>Golden Valley<br/>
</td>
<td align="right">11,744.61<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.193.39"></a><var>193.39</var><br/>
</td>
<td></td>
<td>Hastings<br/>
</td>
<td align="right">16,561.00<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.194.1"></a><var>194.1</var><br/>
</td>
<td></td>
<td>Hopkins<br/>
</td>
<td align="right">4,324.23<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.194.2"></a><var>194.2</var><br/>
</td>
<td></td>
<td>International Falls<br/>
</td>
<td align="right">14,400.69<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.194.3"></a><var>194.3</var><br/>
</td>
<td></td>
<td>Lakeville<br/>
</td>
<td align="right">782.35<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.194.4"></a><var>194.4</var><br/>
</td>
<td></td>
<td>Lino Lakes<br/>
</td>
<td align="right">5,324.00<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.194.5"></a><var>194.5</var><br/>
</td>
<td></td>
<td>Little Falls<br/>
</td>
<td align="right">7,889.41<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.194.6"></a><var>194.6</var><br/>
</td>
<td></td>
<td>Maple Grove<br/>
</td>
<td align="right">6,707.54<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.194.7"></a><var>194.7</var><br/>
</td>
<td></td>
<td>Maplewood<br/>
</td>
<td align="right">8,476.69<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.194.8"></a><var>194.8</var><br/>
</td>
<td></td>
<td>Minnetonka<br/>
</td>
<td align="right">10,403.00<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.194.9"></a><var>194.9</var><br/>
</td>
<td></td>
<td>Montevideo<br/>
</td>
<td align="right">1,307.66<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.194.10"></a><var>194.10</var><br/>
</td>
<td></td>
<td>Moorhead<br/>
</td>
<td align="right">68,069.26<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.194.11"></a><var>194.11</var><br/>
</td>
<td></td>
<td>New Hope<br/>
</td>
<td align="right">6,739.72<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.194.12"></a><var>194.12</var><br/>
</td>
<td></td>
<td>North St. Paul<br/>
</td>
<td align="right">4,241.14<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.194.13"></a><var>194.13</var><br/>
</td>
<td></td>
<td>Northfield<br/>
</td>
<td align="right">770.63<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.194.14"></a><var>194.14</var><br/>
</td>
<td></td>
<td>Owatonna<br/>
</td>
<td align="right">37,292.67<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.194.15"></a><var>194.15</var><br/>
</td>
<td></td>
<td>Plymouth<br/>
</td>
<td align="right">6,754.71<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.194.16"></a><var>194.16</var><br/>
</td>
<td></td>
<td>Red Wing<br/>
</td>
<td align="right">3,504.01<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.194.17"></a><var>194.17</var><br/>
</td>
<td></td>
<td>Richfield<br/>
</td>
<td align="right">53,757.96<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.194.18"></a><var>194.18</var><br/>
</td>
<td></td>
<td>RosemontRosemount<br/>
</td>
<td align="right">1,712.55<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.194.19"></a><var>194.19</var><br/>
</td>
<td></td>
<td>Roseville<br/>
</td>
<td align="right">9,854.51<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.194.20"></a><var>194.20</var><br/>
</td>
<td></td>
<td>St. Anthony<br/>
</td>
<td align="right">33,055.00<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.194.21"></a><var>194.21</var><br/>
</td>
<td></td>
<td>St. Louis Park<br/>
</td>
<td align="right">53,643.11<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.194.22"></a><var>194.22</var><br/>
</td>
<td></td>
<td>Thief River Falls<br/>
</td>
<td align="right">28,365.04<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.194.23"></a><var>194.23</var><br/>
</td>
<td></td>
<td>Virginia<br/>
</td>
<td align="right">31,164.46<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.194.24"></a><var>194.24</var><br/>
</td>
<td></td>
<td>Waseca<br/>
</td>
<td align="right">11,135.17<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.194.25"></a><var>194.25</var><br/>
</td>
<td></td>
<td>West St. Paul<br/>
</td>
<td align="right">15,707.20<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.194.26"></a><var>194.26</var><br/>
</td>
<td></td>
<td>White Bear Lake<br/>
</td>
<td align="right">6,521.04<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.194.27"></a><var>194.27</var><br/>
</td>
<td></td>
<td>Woodbury<br/>
</td>
<td align="right">3,613.00<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.194.28"></a><var>194.28</var><br/>
</td>
<td></td>
<td>any other municipality<br/>
</td>
<td align="right">0.00<br/>
</td>
<td></td>
</tr>
</table><a id="pl.194.29"></a><var>194.29</var>(d) The total amount of excess police state aid must be deposited in the excess <br/>
<a id="pl.194.30"></a><var>194.30</var>police state-aid account in the general fund, administered and distributed as provided <br/>
<a id="pl.194.31"></a><var>194.31</var>in subdivision 11.<br/>
<br/>
<a id="bill.13.8.0"></a><a id="pl.194.32"></a><var>194.32</var>    Sec. 8. Minnesota Statutes 2009 Supplement, section 69.031, subdivision 5, is <br/>
<a id="pl.194.33"></a><var>194.33</var>amended to read:<br/>
<a id="pl.194.34"></a><var>194.34</var>    Subd. 5. <b>Deposit of state aid.</b> (a) If the municipality or the independent nonprofit <br/>
<a id="pl.194.35"></a><var>194.35</var>firefighting corporation is covered by the voluntary statewide lump-sum volunteer <br/>
<a id="pl.194.36"></a><var>194.36</var>firefighter retirement plan under chapter 353G, the executive director shall credit the fire <br/>
<a id="pl.194.37"></a><var>194.37</var>state aid against future municipal contribution requirements under section 
         <statute_ref>353G.08 </statute_ref>and <br/>
<a id="pl.194.38"></a><var>194.38</var>shall notify the municipality or independent nonprofit firefighting corporation of the fire <br/>
<a id="pl.194.39"></a><var>194.39</var>state aid so credited at least annually. If the municipality or the independent nonprofit <br/>
<a id="pl.194.40"></a><var>194.40</var>firefighting corporation is not covered by the voluntary statewide lump-sum volunteer <br/>
<a id="pl.195.1"></a><var>195.1</var>firefighter retirement plan, the municipal treasurer shall, within 30 days after receipt, <br/>
<a id="pl.195.2"></a><var>195.2</var>transmit the fire state aid to the treasurer of the duly incorporated firefighters' relief <br/>
<a id="pl.195.3"></a><var>195.3</var>association if there is one organized and the association has filed a financial report with the <br/>
<a id="pl.195.4"></a><var>195.4</var>municipality. If the relief association has not filed a financial report with the municipality, <br/>
<a id="pl.195.5"></a><var>195.5</var>the municipal treasurer shall delay transmission of the fire state aid to the relief association <br/>
<a id="pl.195.6"></a><var>195.6</var>until the complete financial report is filed. If the municipality or independent nonprofit <br/>
<a id="pl.195.7"></a><var>195.7</var>firefighting corporation is not covered by the voluntary statewide lump-sum volunteer <br/>
<a id="pl.195.8"></a><var>195.8</var>firefighter retirement plan, if there is no relief association organized, or if the association <br/>
<a id="pl.195.9"></a><var>195.9</var>has dissolved or has been removed as trustees of state aid, then the treasurer of the <br/>
<a id="pl.195.10"></a><var>195.10</var>municipality shall deposit the money in the municipal treasury and the money may be <br/>
<a id="pl.195.11"></a><var>195.11</var>disbursed only for the purposes and in the manner set forth in section 
         <statute_ref>424A.08</statute_ref> or for the <br/>
<a id="pl.195.12"></a><var>195.12</var>payment of the employer contribution requirement with respect to firefighters covered by <br/>
<a id="pl.195.13"></a><var>195.13</var>the public employees police and fire retirement plan under section 
         <statute_ref>353.65, subdivision 3</statute_ref>.<br/>
<a id="pl.195.14"></a><var>195.14</var>(b) The municipal treasurer, upon receipt of the police state aid, shall disburse the <br/>
<a id="pl.195.15"></a><var>195.15</var>police state aid in the following manner:<br/>
<a id="pl.195.16"></a><var>195.16</var>(1) For a municipality in which a local police relief association exists and all peace <br/>
<a id="pl.195.17"></a><var>195.17</var>officers are members of the association, the total state aid must be transmitted to the <br/>
<a id="pl.195.18"></a><var>195.18</var>treasurer of the relief association within 30 days of the date of receipt, and the treasurer <br/>
<a id="pl.195.19"></a><var>195.19</var>of the relief association shall immediately deposit the total state aid in the special fund <br/>
<a id="pl.195.20"></a><var>195.20</var>of the relief association;<br/>
<a id="pl.195.21"></a><var>195.21</var>(2) For a municipality in which police retirement coverage is provided by the public <br/>
<a id="pl.195.22"></a><var>195.22</var>employees police and fire fund and all peace officers are members of the fund, including <br/>
<a id="pl.195.23"></a><var>195.23</var>municipalities covered by section 
         <statute_ref>353.665</statute_ref>, the total state aid must be applied toward the <br/>
<a id="pl.195.24"></a><var>195.24</var>municipality's employer contribution to the public employees police and fire fund under <br/>
<a id="pl.195.25"></a><var>195.25</var>sections 
         <statute_ref>353.65, subdivision 3</statute_ref>, and 
         <statute_ref>353.665, subdivision 8</statute_ref>, paragraph (b), if applicable; or <br/>
<a id="pl.195.26"></a><var>195.26</var>(3) For a municipality other than a city of the first class with a population of more <br/>
<a id="pl.195.27"></a><var>195.27</var>than 300,000 in which both a police relief association exists and police retirement <br/>
<a id="pl.195.28"></a><var>195.28</var>coverage is provided in part by the public employees police and fire fund, the municipality <br/>
<a id="pl.195.29"></a><var>195.29</var>may elect at its option to transmit the total state aid to the treasurer of the relief association <br/>
<a id="pl.195.30"></a><var>195.30</var>as provided in clause (1), to use the total state aid to apply toward the municipality's <br/>
<a id="pl.195.31"></a><var>195.31</var>employer contribution to the public employees police and fire fund subject to all the <br/>
<a id="pl.195.32"></a><var>195.32</var>provisions set forth in clause (2), or to allot the total state aid proportionately to be <br/>
<a id="pl.195.33"></a><var>195.33</var>transmitted to the police relief association as provided in this subdivision and to apply <br/>
<a id="pl.195.34"></a><var>195.34</var>toward the municipality's employer contribution to the public employees police and fire <br/>
<a id="pl.195.35"></a><var>195.35</var>fund subject to the provisions of clause (2) on the basis of the respective number of active <br/>
<a id="pl.195.36"></a><var>195.36</var>full-time peace officers, as defined in section 
         <statute_ref>69.011, subdivision 1</statute_ref>, clause (g). <br/>
<a id="pl.196.1"></a><var>196.1</var>For a city of the first class with a population of more than 300,000, in addition, the <br/>
<a id="pl.196.2"></a><var>196.2</var>city may elect to allot the appropriate portion of the total police state aid to apply toward <br/>
<a id="pl.196.3"></a><var>196.3</var>the employer contribution of the city to the public employees police and fire fund based <br/>
<a id="pl.196.4"></a><var>196.4</var>on the covered salary of police officers covered by the fund each payroll period and to <br/>
<a id="pl.196.5"></a><var>196.5</var>transmit the balance to the police relief association; or<br/>
<a id="pl.196.6"></a><var>196.6</var>(4) For a municipality in which police retirement coverage is provided in part by <br/>
<a id="pl.196.7"></a><var>196.7</var>the public employees police and fire fund and in part by a local police consolidation <br/>
<a id="pl.196.8"></a><var>196.8</var>account governed by chapter 353A and established before March 2, 1999, for which the <br/>
<a id="pl.196.9"></a><var>196.9</var>municipality declined merger under section 
         <statute_ref>353.665, subdivision 1</statute_ref>, or established after <br/>
<a id="pl.196.10"></a><var>196.10</var>March 1, 1999, the total police state aid must be applied towards the municipality's total <br/>
<a id="pl.196.11"></a><var>196.11</var>employer contribution to the public employees police and fire fund and to the local police <br/>
<a id="pl.196.12"></a><var>196.12</var>consolidation account under sections 
         <statute_ref>353.65, subdivision 3</statute_ref>, and 
         <statute_ref>353A.09, subdivision 5</statute_ref>. <br/>
<a id="pl.196.13"></a><var>196.13</var>(c) The county treasurer, upon receipt of the police state aid for the county, shall <br/>
<a id="pl.196.14"></a><var>196.14</var>apply the total state aid toward the county's employer contribution to the public employees <br/>
<a id="pl.196.15"></a><var>196.15</var>police and fire fund under section 
         <statute_ref>353.65, subdivision 3</statute_ref>. <br/>
<a id="pl.196.16"></a><var>196.16</var>(d) The designated Metropolitan Airports Commission official, upon receipt of the <br/>
<a id="pl.196.17"></a><var>196.17</var>police state aid for the Metropolitan Airports Commission, shall apply the total police <br/>
<a id="pl.196.18"></a><var>196.18</var>state aid first toward the commission's employer contribution for police officers to the <br/>
<a id="pl.196.19"></a><var>196.19</var>Minneapolis Employees Retirement Fund under section 
<statute_ref>422A.101, subdivision 2a</statute_ref>, and, if <br/>
<a id="pl.196.20"></a><var>196.20</var>there is any amount of police state aid remaining, shall apply that remainder toward the <br/>
<a id="pl.196.21"></a><var>196.21</var>commission's employer contribution for police officers to the public employees police and <br/>
<a id="pl.196.22"></a><var>196.22</var>fire plan under section 
         <statute_ref>353.65, subdivision 3</statute_ref>. <br/>
<a id="pl.196.23"></a><var>196.23</var>(e) The police state aid apportioned to the Departments of Public Safety and Natural <br/>
<a id="pl.196.24"></a><var>196.24</var>Resources under section 
         <statute_ref>69.021, subdivision 7a</statute_ref>, is appropriated to the commissioner <br/>
<a id="pl.196.25"></a><var>196.25</var>of management and budget for transfer to the funds and accounts from which the <br/>
<a id="pl.196.26"></a><var>196.26</var>salaries of peace officers certified under section 69.011, subdivision 2a 2b, are paid. <br/>
<a id="pl.196.27"></a><var>196.27</var>The commissioner of revenue shall certify to the commissioners of public safety, <br/>
<a id="pl.196.28"></a><var>196.28</var>natural resources, and management and budget the amounts to be transferred from the <br/>
<a id="pl.196.29"></a><var>196.29</var>appropriation for police state aid. The commissioners of public safety and natural <br/>
<a id="pl.196.30"></a><var>196.30</var>resources shall certify to the commissioner of management and budget the amounts to be <br/>
<a id="pl.196.31"></a><var>196.31</var>credited to each of the funds and accounts from which the peace officers employed by their <br/>
<a id="pl.196.32"></a><var>196.32</var>respective departments are paid. Each commissioner shall allocate the police state aid first <br/>
<a id="pl.196.33"></a><var>196.33</var>for employer contributions for employees funded from the general fund and then for <br/>
<a id="pl.196.34"></a><var>196.34</var>employer contributions for employees funded from other funds. For peace officers whose <br/>
<a id="pl.196.35"></a><var>196.35</var>salaries are paid from the general fund, the amounts transferred from the appropriation <br/>
<a id="pl.196.36"></a><var>196.36</var>for police state aid must be canceled to the general fund. <br/>
<br/>
<a id="bill.13.9.0"></a><a id="pl.197.1"></a><var>197.1</var>    Sec. 9. Minnesota Statutes 2008, section 126C.41, subdivision 3, is amended to read:<br/>
<a id="pl.197.2"></a><var>197.2</var>    Subd. 3. <b>Retirement levies.</b> (a) In 1991 and each year thereafter, a district to which <br/>
<a id="pl.197.3"></a><var>197.3</var>this subdivision applies may levy an additional amount required for contributions to the <br/>
<a id="pl.197.4"></a><var>197.4</var>general employees retirement plan of the Public Employees Retirement Association as the <br/>
<a id="pl.197.5"></a><var>197.5</var>successor of the Minneapolis Employees Retirement Fund as a result of the maximum <br/>
<a id="pl.197.6"></a><var>197.6</var>dollar amount limitation on state contributions to the fund that plan imposed under <br/>
<a id="pl.197.7"></a><var>197.7</var>section 
         <statute_ref>422A.101, subdivision 3</statute_ref>. The additional levy must not exceed the most recent <br/>
<a id="pl.197.8"></a><var>197.8</var>amount certified by the board of the Minneapolis Employees Retirement Fund executive <br/>
<a id="pl.197.9"></a><var>197.9</var>director of the Public Employees Retirement Association as the district's share of the <br/>
<a id="pl.197.10"></a><var>197.10</var>contribution requirement in excess of the maximum state contribution under section <br/>
<statute_ref><a id="pl.197.11"></a><var>197.11</var>422A.101, subdivision 3
         </statute_ref>.  <br/>
<a id="pl.197.12"></a><var>197.12</var>(b) For taxes payable in 1994 and thereafter, Special School District No. 1, <br/>
<a id="pl.197.13"></a><var>197.13</var>Minneapolis, and Independent School District No. 625, St. Paul, may levy for the increase <br/>
<a id="pl.197.14"></a><var>197.14</var>in the employer retirement fund contributions, under Laws 1992, chapter 598, article 5, <br/>
<a id="pl.197.15"></a><var>197.15</var>section 1.<br/>
<a id="pl.197.16"></a><var>197.16</var>(c) If the employer retirement fund contributions under section 
         <statute_ref>354A.12, subdivision <br/>
<a id="pl.197.17"></a><var>197.17</var>2a
         </statute_ref>, are increased for fiscal year 1994 or later fiscal years, Special School District No. 1, <br/>
<a id="pl.197.18"></a><var>197.18</var>Minneapolis, and Independent School District No. 625, St. Paul, may levy in payable <br/>
<a id="pl.197.19"></a><var>197.19</var>1994 or later an amount equal to the amount derived by applying the net increase in <br/>
<a id="pl.197.20"></a><var>197.20</var>the employer retirement fund contribution rate of the respective teacher retirement fund <br/>
<a id="pl.197.21"></a><var>197.21</var>association between fiscal year 1993 and the fiscal year beginning in the year after the <br/>
<a id="pl.197.22"></a><var>197.22</var>levy is certified to the total covered payroll of the applicable teacher retirement fund <br/>
<a id="pl.197.23"></a><var>197.23</var>association. If an applicable school district levies under this paragraph, they may not <br/>
<a id="pl.197.24"></a><var>197.24</var>levy under paragraph (b).  <br/>
<a id="pl.197.25"></a><var>197.25</var>(d) In addition to the levy authorized under paragraph (c), Special School District <br/>
<a id="pl.197.26"></a><var>197.26</var>No. 1, Minneapolis, may also levy payable in 1997 or later an amount equal to the <br/>
<a id="pl.197.27"></a><var>197.27</var>contributions under section 
         <statute_ref>423A.02, subdivision 3</statute_ref>, and may also levy in payable 1994 <br/>
<a id="pl.197.28"></a><var>197.28</var>or later an amount equal to the state aid contribution under section 
         <statute_ref>354A.12, subdivision <br/>
<a id="pl.197.29"></a><var>197.29</var>3b
         </statute_ref>. Independent School District No. 625, St. Paul, may levy payable in 1997 or later an <br/>
<a id="pl.197.30"></a><var>197.30</var>amount equal to the supplemental contributions under section 
         <statute_ref>423A.02, subdivision 3</statute_ref>.  <br/>
<br/>
<a id="bill.13.10.0"></a><a id="pl.197.31"></a><var>197.31</var>    Sec. 10. Minnesota Statutes 2008, section 256D.21, is amended to read:<br/>
<a id="pl.197.32"></a><var>197.32</var><b>256D.21 CONTINUATION OF BENEFITS; FORMER MINNEAPOLIS </b><br/>
<a id="pl.197.33"></a><var>197.33</var><b>EMPLOYEES.</b><br/>
<a id="pl.197.34"></a><var>197.34</var>    Subdivision 1. <b>Continuation of benefits.</b> Each employee of the city of Minneapolis <br/>
<a id="pl.197.35"></a><var>197.35</var>who is transferred to and employed by the county under the provisions of section 
         <statute_ref>256D.20</statute_ref> <br/>
<a id="pl.198.1"></a><var>198.1</var>and who is a contributing member of a retirement system organized under the provisions <br/>
<a id="pl.198.2"></a><var>198.2</var>of Minnesota Statutes 2008, chapter 422A, shall continue to be is a member of that system <br/>
<a id="pl.198.3"></a><var>198.3</var>the MERF division of the Public Employees Retirement Association and is entitled to all <br/>
<a id="pl.198.4"></a><var>198.4</var>of the applicable benefits conferred thereby by and subject to all the restrictions of chapter <br/>
<a id="pl.198.5"></a><var>198.5</var>422A, unless the member applies to cancel membership within six months after January <br/>
<a id="pl.198.6"></a><var>198.6</var>1, 1974 section 353.50. <br/>
<a id="pl.198.7"></a><var>198.7</var>    Subd. 2. <b>City obligation.</b> The cost to the public of that portion of the retirement <br/>
<a id="pl.198.8"></a><var>198.8</var>allowances or other benefits accrued while any such employee was in the service of the <br/>
<a id="pl.198.9"></a><var>198.9</var>city of Minneapolis shall must remain an obligation of the city and a tax shall must be <br/>
<a id="pl.198.10"></a><var>198.10</var>levied and collected by it to discharge its obligation as provided by chapter 422A in <br/>
<a id="pl.198.11"></a><var>198.11</var>section 353.50, subdivision 7.<br/>
<a id="pl.198.12"></a><var>198.12</var>    Subd. 3. <b>County obligation.</b> The cost to the public of the retirement allowances <br/>
<a id="pl.198.13"></a><var>198.13</var>or other benefits accruing to employees so transferred to and employed by the county <br/>
<a id="pl.198.14"></a><var>198.14</var>shall be is the obligation of and paid by the county at such time as the retirement board <br/>
<a id="pl.198.15"></a><var>198.15</var>shall fix and determine in accordance with chapter 422A in section 353.50, subdivision <br/>
<a id="pl.198.16"></a><var>198.16</var>7. The county shall pay to the municipal general employees retirement fund an amount <br/>
<a id="pl.198.17"></a><var>198.17</var>certified to the county auditor of the county by the retirement board as the cost of the <br/>
<a id="pl.198.18"></a><var>198.18</var>retirement allowances and other benefits accruing and owing to such county employees of <br/>
<a id="pl.198.19"></a><var>198.19</var>the Public Employees Retirement Association those amounts. The cost to the public of <br/>
<a id="pl.198.20"></a><var>198.20</var>the retirement allowances as herein provided shall coverage under this section must be <br/>
<a id="pl.198.21"></a><var>198.21</var>paid from the county revenue fund by the county auditor upon receipt of certification from <br/>
<a id="pl.198.22"></a><var>198.22</var>the retirement board as herein provided, and the county board is authorized to levy and <br/>
<a id="pl.198.23"></a><var>198.23</var>collect such taxes as may be necessary to pay such costs.<br/>
<br/>
<a id="bill.13.11.0"></a><a id="pl.198.24"></a><var>198.24</var>    Sec. 11. Minnesota Statutes 2009 Supplement, section 352.01, subdivision 2b, is <br/>
<a id="pl.198.25"></a><var>198.25</var>amended to read:<br/>
<a id="pl.198.26"></a><var>198.26</var>    Subd. 2b.  <b>Excluded employees.</b> "State employee" does not include: <br/>
<a id="pl.198.27"></a><var>198.27</var>    (1) students employed by the University of Minnesota, or the state colleges and <br/>
<a id="pl.198.28"></a><var>198.28</var>universities, unless approved for coverage by the Board of Regents of the University of <br/>
<a id="pl.198.29"></a><var>198.29</var>Minnesota or the Board of Trustees of the Minnesota State Colleges and Universities, <br/>
<a id="pl.198.30"></a><var>198.30</var>whichever is applicable; <br/>
<a id="pl.198.31"></a><var>198.31</var>    (2) employees who are eligible for membership in the state Teachers Retirement <br/>
<a id="pl.198.32"></a><var>198.32</var>Association, except employees of the Department of Education who have chosen or may <br/>
<a id="pl.198.33"></a><var>198.33</var>choose to be covered by the general state employees retirement plan of the Minnesota <br/>
<a id="pl.198.34"></a><var>198.34</var>State Retirement System instead of the Teachers Retirement Association; <br/>
<a id="pl.199.1"></a><var>199.1</var>    (3) employees of the University of Minnesota who are excluded from coverage by <br/>
<a id="pl.199.2"></a><var>199.2</var>action of the Board of Regents; <br/>
<a id="pl.199.3"></a><var>199.3</var>    (4) officers and enlisted personnel in the National Guard and the naval militia who <br/>
<a id="pl.199.4"></a><var>199.4</var>are assigned to permanent peacetime duty and who under federal law are or are required to <br/>
<a id="pl.199.5"></a><var>199.5</var>be members of a federal retirement system; <br/>
<a id="pl.199.6"></a><var>199.6</var>    (5) election officers; <br/>
<a id="pl.199.7"></a><var>199.7</var>    (6) persons who are engaged in public work for the state but who are employed <br/>
<a id="pl.199.8"></a><var>199.8</var>by contractors when the performance of the contract is authorized by the legislature or <br/>
<a id="pl.199.9"></a><var>199.9</var>other competent authority; <br/>
<a id="pl.199.10"></a><var>199.10</var>    (7) officers and employees of the senate, or of the house of representatives, or of a <br/>
<a id="pl.199.11"></a><var>199.11</var>legislative committee or commission who are temporarily employed; <br/>
<a id="pl.199.12"></a><var>199.12</var>    (8) receivers, jurors, notaries public, and court employees who are not in the judicial <br/>
<a id="pl.199.13"></a><var>199.13</var>branch as defined in section 
         <statute_ref>43A.02, subdivision 25</statute_ref>, except referees and adjusters <br/>
<a id="pl.199.14"></a><var>199.14</var>employed by the Department of Labor and Industry; <br/>
<a id="pl.199.15"></a><var>199.15</var>    (9) patient and inmate help in state charitable, penal, and correctional institutions <br/>
<a id="pl.199.16"></a><var>199.16</var>including the Minnesota Veterans Home; <br/>
<a id="pl.199.17"></a><var>199.17</var>    (10) persons who are employed for professional services where the service is <br/>
<a id="pl.199.18"></a><var>199.18</var>incidental to their regular professional duties and whose compensation is paid on a per <br/>
<a id="pl.199.19"></a><var>199.19</var>diem basis; <br/>
<a id="pl.199.20"></a><var>199.20</var>    (11) employees of the Sibley House Association; <br/>
<a id="pl.199.21"></a><var>199.21</var>    (12) the members of any state board or commission who serve the state intermittently <br/>
<a id="pl.199.22"></a><var>199.22</var>and are paid on a per diem basis; the secretary, secretary-treasurer, and treasurer of those <br/>
<a id="pl.199.23"></a><var>199.23</var>boards if their compensation is $5,000 or less per year, or, if they are legally prohibited <br/>
<a id="pl.199.24"></a><var>199.24</var>from serving more than three years; and the board of managers of the State Agricultural <br/>
<a id="pl.199.25"></a><var>199.25</var>Society and its treasurer unless the treasurer is also its full-time secretary; <br/>
<a id="pl.199.26"></a><var>199.26</var>    (13) state troopers and persons who are described in section 
         <statute_ref>352B.011, subdivision <br/>
<a id="pl.199.27"></a><var>199.27</var>10
         </statute_ref>, clauses (2) to (8); <br/>
<a id="pl.199.28"></a><var>199.28</var>    (14) temporary employees of the Minnesota State Fair who are employed on or <br/>
<a id="pl.199.29"></a><var>199.29</var>after July 1 for a period not to extend beyond October 15 of that year; and persons who <br/>
<a id="pl.199.30"></a><var>199.30</var>are employed at any time by the state fair administration for special events held on the <br/>
<a id="pl.199.31"></a><var>199.31</var>fairgrounds; <br/>
<a id="pl.199.32"></a><var>199.32</var>    (15) emergency employees who are in the classified service; except that if an <br/>
<a id="pl.199.33"></a><var>199.33</var>emergency employee, within the same pay period, becomes a provisional or probationary <br/>
<a id="pl.199.34"></a><var>199.34</var>employee on other than a temporary basis, the employee must be considered a "state <br/>
<a id="pl.199.35"></a><var>199.35</var>employee" retroactively to the beginning of the pay period; <br/>
<a id="pl.200.1"></a><var>200.1</var>    (16) temporary employees in the classified service, and temporary employees in the <br/>
<a id="pl.200.2"></a><var>200.2</var>unclassified service who are appointed for a definite period of not more than six months <br/>
<a id="pl.200.3"></a><var>200.3</var>and who are employed less than six months in any one-year period; <br/>
<a id="pl.200.4"></a><var>200.4</var>    (17) interns hired for six months or less and trainee employees, except those listed in <br/>
<a id="pl.200.5"></a><var>200.5</var>subdivision 2a, clause (8); <br/>
<a id="pl.200.6"></a><var>200.6</var>    (18) persons whose compensation is paid on a fee basis or as an independent <br/>
<a id="pl.200.7"></a><var>200.7</var>contractor; <br/>
<a id="pl.200.8"></a><var>200.8</var>    (19) state employees who are employed by the Board of Trustees of the Minnesota <br/>
<a id="pl.200.9"></a><var>200.9</var>State Colleges and Universities in unclassified positions enumerated in section 
         <statute_ref>43A.08, <br/>
<a id="pl.200.10"></a><var>200.10</var>subdivision 1
         </statute_ref>, clause (9); <br/>
<a id="pl.200.11"></a><var>200.11</var>    (20) state employees who in any year have credit for 12 months service as teachers <br/>
<a id="pl.200.12"></a><var>200.12</var>in the public schools of the state and as teachers are members of the Teachers Retirement <br/>
<a id="pl.200.13"></a><var>200.13</var>Association or a retirement system in St. Paul, Minneapolis, or Duluth, except for <br/>
<a id="pl.200.14"></a><var>200.14</var>incidental employment as a state employee that is not covered by one of the teacher <br/>
<a id="pl.200.15"></a><var>200.15</var>retirement associations or systems; <br/>
<a id="pl.200.16"></a><var>200.16</var>    (21) employees of the adjutant general who are employed on an unlimited <br/>
<a id="pl.200.17"></a><var>200.17</var>intermittent or temporary basis in the classified or unclassified service for the support of <br/>
<a id="pl.200.18"></a><var>200.18</var>Army and Air National Guard training facilities; <br/>
<a id="pl.200.19"></a><var>200.19</var>    (22) chaplains and nuns who are excluded from coverage under the federal Old <br/>
<a id="pl.200.20"></a><var>200.20</var>Age, Survivors, Disability, and Health Insurance Program for the performance of service <br/>
<a id="pl.200.21"></a><var>200.21</var>as specified in United States Code, title 42, section 410(a)(8)(A), as amended, if no <br/>
<a id="pl.200.22"></a><var>200.22</var>irrevocable election of coverage has been made under section 3121(r) of the Internal <br/>
<a id="pl.200.23"></a><var>200.23</var>Revenue Code of 1986, as amended through December 31, 1992; <br/>
<a id="pl.200.24"></a><var>200.24</var>    (23) examination monitors who are employed by departments, agencies, <br/>
<a id="pl.200.25"></a><var>200.25</var>commissions, and boards to conduct examinations required by law; <br/>
<a id="pl.200.26"></a><var>200.26</var>    (24) persons who are appointed to serve as members of fact-finding commissions or <br/>
<a id="pl.200.27"></a><var>200.27</var>adjustment panels, arbitrators, or labor referees under chapter 179; <br/>
<a id="pl.200.28"></a><var>200.28</var>    (25) temporary employees who are employed for limited periods under any state or <br/>
<a id="pl.200.29"></a><var>200.29</var>federal program for training or rehabilitation, including persons who are employed for <br/>
<a id="pl.200.30"></a><var>200.30</var>limited periods from areas of economic distress, but not including skilled and supervisory <br/>
<a id="pl.200.31"></a><var>200.31</var>personnel and persons having civil service status covered by the system; <br/>
<a id="pl.200.32"></a><var>200.32</var>    (26) full-time students who are employed by the Minnesota Historical Society <br/>
<a id="pl.200.33"></a><var>200.33</var>intermittently during part of the year and full-time during the summer months; <br/>
<a id="pl.200.34"></a><var>200.34</var>    (27) temporary employees who are appointed for not more than six months, of <br/>
<a id="pl.200.35"></a><var>200.35</var>the Metropolitan Council and of any of its statutory boards, if the board members are <br/>
<a id="pl.200.36"></a><var>200.36</var>appointed by the Metropolitan Council; <br/>
<a id="pl.201.1"></a><var>201.1</var>    (28) persons who are employed in positions designated by the Department of <br/>
<a id="pl.201.2"></a><var>201.2</var>Management and Budget as student workers; <br/>
<a id="pl.201.3"></a><var>201.3</var>    (29) members of trades who are employed by the successor to the Metropolitan <br/>
<a id="pl.201.4"></a><var>201.4</var>Waste Control Commission, who have trade union pension plan coverage under a <br/>
<a id="pl.201.5"></a><var>201.5</var>collective bargaining agreement, and who are first employed after June 1, 1977; <br/>
<a id="pl.201.6"></a><var>201.6</var>    (30) off-duty peace officers while employed by the Metropolitan Council; <br/>
<a id="pl.201.7"></a><var>201.7</var>    (31) persons who are employed as full-time police officers by the Metropolitan <br/>
<a id="pl.201.8"></a><var>201.8</var>Council and as police officers are members of the public employees police and fire fund; <br/>
<a id="pl.201.9"></a><var>201.9</var>    (32) persons who are employed as full-time firefighters by the Department of Military <br/>
<a id="pl.201.10"></a><var>201.10</var>Affairs and as firefighters are members of the public employees police and fire fund; <br/>
<a id="pl.201.11"></a><var>201.11</var>    (33) foreign citizens with a work permit of less than three years, or an H-1b/JV visa <br/>
<a id="pl.201.12"></a><var>201.12</var>valid for less than three years of employment, unless notice of extension is supplied which <br/>
<a id="pl.201.13"></a><var>201.13</var>allows them to work for three or more years as of the date the extension is granted, in <br/>
<a id="pl.201.14"></a><var>201.14</var>which case they are eligible for coverage from the date extended; and <br/>
<a id="pl.201.15"></a><var>201.15</var>    (34) persons who are employed by the Board of Trustees of the Minnesota State <br/>
<a id="pl.201.16"></a><var>201.16</var>Colleges and Universities and who elected to remain members of the Public Employees <br/>
<a id="pl.201.17"></a><var>201.17</var>Retirement Association or of the MERF division of the Public Employees Retirement <br/>
<a id="pl.201.18"></a><var>201.18</var>Association as the successor of the Minneapolis Employees Retirement Fund, whichever <br/>
<a id="pl.201.19"></a><var>201.19</var>applies, under Minnesota Statutes 1994, section 
         <statute_ref>136C.75</statute_ref>. <br/>
<br/>
<a id="bill.13.12.0"></a><a id="pl.201.20"></a><var>201.20</var>    Sec. 12. Minnesota Statutes 2008, section 353.03, subdivision 1, is amended to read:<br/>
<a id="pl.201.21"></a><var>201.21</var>    Subdivision 1. <b>Management; composition; election.</b> (a) The management of <br/>
<a id="pl.201.22"></a><var>201.22</var>the Public Employees Retirement fund Association is vested in an 11-member board of <br/>
<a id="pl.201.23"></a><var>201.23</var>trustees consisting of ten members and the state auditor. The state auditor may designate <br/>
<a id="pl.201.24"></a><var>201.24</var>a deputy auditor with expertise in pension matters as the auditor's representative on the <br/>
<a id="pl.201.25"></a><var>201.25</var>board. The governor shall appoint five trustees to four-year terms, one of whom shall be <br/>
<a id="pl.201.26"></a><var>201.26</var>designated to represent school boards, one to represent cities, one to represent counties, <br/>
<a id="pl.201.27"></a><var>201.27</var>one who is a retired annuitant, and one who is a public member knowledgeable in pension <br/>
<a id="pl.201.28"></a><var>201.28</var>matters. The membership of the association, including recipients of retirement annuities <br/>
<a id="pl.201.29"></a><var>201.29</var>and disability and survivor benefits, shall elect five trustees for terms of four years, one of <br/>
<a id="pl.201.30"></a><var>201.30</var>whom must be a member of the police and fire fund and one of whom must be a former <br/>
<a id="pl.201.31"></a><var>201.31</var>member who met the definition of public employee under section 353.01, subdivisions 2 <br/>
<a id="pl.201.32"></a><var>201.32</var>and 2a, for at least five years prior to terminating membership or a member who receives <br/>
<a id="pl.201.33"></a><var>201.33</var>a disability benefit. Terms expire on January 31 of the fourth year, and positions are <br/>
<a id="pl.201.34"></a><var>201.34</var>vacant until newly elected members are seated. Except as provided in this subdivision, <br/>
<a id="pl.202.1"></a><var>202.1</var>trustees elected by the membership of the association must be public employees and <br/>
<a id="pl.202.2"></a><var>202.2</var>members of the association. <br/>
<a id="pl.202.3"></a><var>202.3</var>(b) For seven days beginning October 1 of each year preceding a year in which <br/>
<a id="pl.202.4"></a><var>202.4</var>an election is held, the association shall accept at its office filings in person or by mail <br/>
<a id="pl.202.5"></a><var>202.5</var>of candidates for the board of trustees. A candidate shall submit at the time of filing a <br/>
<a id="pl.202.6"></a><var>202.6</var>nominating petition signed by 25 or more members of the association. No name may <br/>
<a id="pl.202.7"></a><var>202.7</var>be withdrawn from nomination by the nominee after October 15. At the request of a <br/>
<a id="pl.202.8"></a><var>202.8</var>candidate for an elected position on the board of trustees, the board shall mail a statement <br/>
<a id="pl.202.9"></a><var>202.9</var>of up to 300 words prepared by the candidate to all persons eligible to vote in the election <br/>
<a id="pl.202.10"></a><var>202.10</var>of the candidate. The board may adopt policies, subject to review and approval by the <br/>
<a id="pl.202.11"></a><var>202.11</var>secretary of state under paragraph (e), to govern the form and length of these statements, <br/>
<a id="pl.202.12"></a><var>202.12</var>timing of mailings, and deadlines for submitting materials to be mailed. The secretary <br/>
<a id="pl.202.13"></a><var>202.13</var>of state shall resolve disputes between the board and a candidate concerning application <br/>
<a id="pl.202.14"></a><var>202.14</var>of these policies to a particular statement. <br/>
<a id="pl.202.15"></a><var>202.15</var>(c) By January 10 of each year in which elections are to be held, the board shall <br/>
<a id="pl.202.16"></a><var>202.16</var>distribute by mail to the members ballots listing the candidates. No member may vote for <br/>
<a id="pl.202.17"></a><var>202.17</var>more than one candidate for each board position to be filled. A ballot indicating a vote for <br/>
<a id="pl.202.18"></a><var>202.18</var>more than one person for any position is void. No special marking may be used on the <br/>
<a id="pl.202.19"></a><var>202.19</var>ballot to indicate incumbents. Ballots mailed to the association must be postmarked no <br/>
<a id="pl.202.20"></a><var>202.20</var>later than January 31. The ballot envelopes must be so designated and the ballots must be <br/>
<a id="pl.202.21"></a><var>202.21</var>counted in a manner that ensures that each vote is secret.<br/>
<a id="pl.202.22"></a><var>202.22</var>(d) A candidate who receives contributions or makes expenditures in excess of $100, <br/>
<a id="pl.202.23"></a><var>202.23</var>or has given implicit or explicit consent for any other person to receive contributions or <br/>
<a id="pl.202.24"></a><var>202.24</var>make expenditures in excess of $100 for the purpose of bringing about the candidate's <br/>
<a id="pl.202.25"></a><var>202.25</var>election, shall file a report with the campaign finance and public disclosure board <br/>
<a id="pl.202.26"></a><var>202.26</var>disclosing the source and amount of all contributions to the candidate's campaign. The <br/>
<a id="pl.202.27"></a><var>202.27</var>campaign finance and public disclosure board shall prescribe forms governing these <br/>
<a id="pl.202.28"></a><var>202.28</var>disclosures. Expenditures and contributions have the meaning defined in section 
         <statute_ref>10A.01</statute_ref>. <br/>
<a id="pl.202.29"></a><var>202.29</var>These terms do not include the mailing made by the association board on behalf of the <br/>
<a id="pl.202.30"></a><var>202.30</var>candidate. A candidate shall file a report within 30 days from the day that the results of <br/>
<a id="pl.202.31"></a><var>202.31</var>the election are announced. The Campaign Finance and Public Disclosure Board shall <br/>
<a id="pl.202.32"></a><var>202.32</var>maintain these reports and make them available for public inspection in the same manner <br/>
<a id="pl.202.33"></a><var>202.33</var>as the board maintains and makes available other reports filed with it. <br/>
<a id="pl.202.34"></a><var>202.34</var>(e) The secretary of state shall review and approve the procedures defined by the <br/>
<a id="pl.202.35"></a><var>202.35</var>board of trustees for conducting the elections specified in this subdivision, including <br/>
<a id="pl.202.36"></a><var>202.36</var>board policies adopted under paragraph (b). <br/>
<a id="pl.203.1"></a><var>203.1</var>(f) The board of trustees and the executive director shall undertake their activities <br/>
<a id="pl.203.2"></a><var>203.2</var>consistent with chapter 356A.<br/>
<br/>
<a id="bill.13.13.0"></a><a id="pl.203.3"></a><var>203.3</var>    Sec. 13. Minnesota Statutes 2008, section 353.71, subdivision 4, is amended to read:<br/>
<a id="pl.203.4"></a><var>203.4</var>    Subd. 4. <b>Repayment of refund.</b> Any person who has received a refund from the <br/>
<a id="pl.203.5"></a><var>203.5</var>Public Employees Retirement fund Association and who is a member of any public <br/>
<a id="pl.203.6"></a><var>203.6</var>retirement system referred to in subdivision 1, may repay such refund to the Public <br/>
<a id="pl.203.7"></a><var>203.7</var>Employees Retirement fund Association as provided in section 
         <statute_ref>353.35</statute_ref>. <br/>
<br/>
<a id="bill.13.14.0"></a><a id="pl.203.8"></a><var>203.8</var>    Sec. 14. Minnesota Statutes 2008, section 353.86, subdivision 1, is amended to read:<br/>
<a id="pl.203.9"></a><var>203.9</var>    Subdivision 1. <b>Participation.</b> Volunteer ambulance service personnel, as defined <br/>
<a id="pl.203.10"></a><var>203.10</var>in section 
         <statute_ref>353.01, subdivision 35</statute_ref>, who are or become members of and participants in <br/>
<a id="pl.203.11"></a><var>203.11</var>the public general employees retirement fund or the public employees police and fire <br/>
<a id="pl.203.12"></a><var>203.12</var>fund before July 1, 2002, and make contributions to either of those funds based on <br/>
<a id="pl.203.13"></a><var>203.13</var>compensation for service other than volunteer ambulance service may elect to participate <br/>
<a id="pl.203.14"></a><var>203.14</var>in that same fund with respect to compensation received for volunteer ambulance service, <br/>
<a id="pl.203.15"></a><var>203.15</var>provided that the volunteer ambulance service is not credited to another public or private <br/>
<a id="pl.203.16"></a><var>203.16</var>pension plan including the public employees retirement plan established by chapter <br/>
<a id="pl.203.17"></a><var>203.17</var>353D and provided further that the volunteer ambulance service is rendered for the same <br/>
<a id="pl.203.18"></a><var>203.18</var>governmental unit for which the nonvolunteer ambulance service is rendered.  <br/>
<br/>
<a id="bill.13.15.0"></a><a id="pl.203.19"></a><var>203.19</var>    Sec. 15. Minnesota Statutes 2008, section 353.86, subdivision 2, is amended to read:<br/>
<a id="pl.203.20"></a><var>203.20</var>    Subd. 2. <b>Election.</b> Volunteer ambulance service personnel to whom subdivision <br/>
<a id="pl.203.21"></a><var>203.21</var>1 applies may exercise the election authorized under subdivision 1 within the earlier of <br/>
<a id="pl.203.22"></a><var>203.22</var>the one-year period beginning on July 1, 1989, and extending through June 30, 1990, or <br/>
<a id="pl.203.23"></a><var>203.23</var>the one-year period commencing on the first day of the first month following the start of <br/>
<a id="pl.203.24"></a><var>203.24</var>employment in a position covered by the public general employees retirement fund or the <br/>
<a id="pl.203.25"></a><var>203.25</var>public employees police and fire fund. The election must be exercised by filing a written <br/>
<a id="pl.203.26"></a><var>203.26</var>notice on a form prescribed by the executive director of the association.<br/>
<br/>
<a id="bill.13.16.0"></a><a id="pl.203.27"></a><var>203.27</var>    Sec. 16. Minnesota Statutes 2008, section 353.87, subdivision 1, is amended to read:<br/>
<a id="pl.203.28"></a><var>203.28</var>    Subdivision 1. <b>Participation.</b> Except as provided in subdivision 2, a volunteer <br/>
<a id="pl.203.29"></a><var>203.29</var>firefighter, as defined in section 
         <statute_ref>353.01, subdivision 36</statute_ref>, who, on June 30, 1989, was <br/>
<a id="pl.203.30"></a><var>203.30</var>a member of, and a participant in, the public general employees retirement fund or the <br/>
<a id="pl.203.31"></a><var>203.31</var>public employees police and fire fund and was making contributions to either of those <br/>
<a id="pl.203.32"></a><var>203.32</var>funds based, at least in part, on compensation for services performed as a volunteer <br/>
<a id="pl.204.1"></a><var>204.1</var>firefighter shall continue as a member of, and a participant in, the public general <br/>
<a id="pl.204.2"></a><var>204.2</var>employees retirement fund or the public employees police and fire fund and compensation <br/>
<a id="pl.204.3"></a><var>204.3</var>for services performed as a volunteer firefighter shall must be considered salary. <br/>
<br/>
<a id="bill.13.17.0"></a><a id="pl.204.4"></a><var>204.4</var>    Sec. 17. Minnesota Statutes 2008, section 353.87, subdivision 2, is amended to read:<br/>
<a id="pl.204.5"></a><var>204.5</var>    Subd. 2. <b>Option.</b> A volunteer firefighter to whom subdivision 1 applies has the <br/>
<a id="pl.204.6"></a><var>204.6</var>option to terminate membership and future participation in the public general employees <br/>
<a id="pl.204.7"></a><var>204.7</var>retirement fund or the public employees police and fire fund upon filing of a written notice <br/>
<a id="pl.204.8"></a><var>204.8</var>of intention to terminate participation. Notice must be given on a form prescribed by the <br/>
<a id="pl.204.9"></a><var>204.9</var>executive director of the association and must be filed in the offices of the association not <br/>
<a id="pl.204.10"></a><var>204.10</var>later than June 30, 1990.<br/>
<br/>
<a id="bill.13.18.0"></a><a id="pl.204.11"></a><var>204.11</var>    Sec. 18. Minnesota Statutes 2008, section 353.88, is amended to read:<br/>
<a id="pl.204.12"></a><var>204.12</var><b>353.88 PENALTY FOR MEMBERSHIP MISCERTIFICATIONS AND </b><br/>
<a id="pl.204.13"></a><var>204.13</var><b>CERTIFICATION FAILURES.</b><br/>
<a id="pl.204.14"></a><var>204.14</var>(a) If the board of trustees of the Public Employees Retirement Association, <br/>
<a id="pl.204.15"></a><var>204.15</var>upon the recommendation of the executive director, determines that a governmental <br/>
<a id="pl.204.16"></a><var>204.16</var>subdivision has certified a public employee for membership in the public employees <br/>
<a id="pl.204.17"></a><var>204.17</var>police and fire retirement plan when the public employee was not eligible for that <br/>
<a id="pl.204.18"></a><var>204.18</var>retirement plan coverage, the public employee must be covered by the correct retirement <br/>
<a id="pl.204.19"></a><var>204.19</var>plan for subsequent service, the public employee retains the coverage for the period of <br/>
<a id="pl.204.20"></a><var>204.20</var>the misclassification, and the governmental subdivision shall pay in a lump sum the <br/>
<a id="pl.204.21"></a><var>204.21</var>difference in the actuarial present value of the retirement annuities to which the public <br/>
<a id="pl.204.22"></a><var>204.22</var>employee would have been entitled if the public employee was properly classified. The <br/>
<a id="pl.204.23"></a><var>204.23</var>governmental subdivision payment is payable within 30 days of the board's determination. <br/>
<a id="pl.204.24"></a><var>204.24</var>If unpaid, it must be collected under section 
         <statute_ref>353.28</statute_ref>. The lump-sum payment must be <br/>
<a id="pl.204.25"></a><var>204.25</var>deposited in the public general employees retirement fund. <br/>
<a id="pl.204.26"></a><var>204.26</var>(b) If the executive director of the Public Employees Retirement Association <br/>
<a id="pl.204.27"></a><var>204.27</var>determines that a governmental subdivision has failed to certify a person for retirement <br/>
<a id="pl.204.28"></a><var>204.28</var>plan membership and coverage under this chapter, in addition to the procedures under <br/>
<a id="pl.204.29"></a><var>204.29</var>section 
         <statute_ref>353.27, subdivision 4</statute_ref>, 9, 10, 11, 12, 12a, or 12b, the director shall charge a fine of <br/>
<a id="pl.204.30"></a><var>204.30</var>$25 for each membership certification failure. <br/>
<br/>
<a id="bill.13.19.0"></a><a id="pl.204.31"></a><var>204.31</var>    Sec. 19. Minnesota Statutes 2008, section 354.71, is amended to read:<br/>
<a id="pl.204.32"></a><var>204.32</var><b>354.71 MINNEAPOLIS EMPLOYEES RETIREMENT FUND STATE AID </b><br/>
<a id="pl.204.33"></a><var>204.33</var><b>REDEDICATED.</b><br/>
<a id="pl.205.1"></a><var>205.1</var>    Subdivision 1. <b>Appropriation.</b> The positive difference, if any, between the <br/>
<a id="pl.205.2"></a><var>205.2</var>actual state aid paid payable to the MERF division account of the Public Employees <br/>
<a id="pl.205.3"></a><var>205.3</var>Retirement Association with respect to the former Minneapolis Employees Retirement <br/>
<a id="pl.205.4"></a><var>205.4</var>Fund under section 
         <statute_ref>422A.101</statute_ref>, subdivision 3, and $8,065,000 annually is appropriated <br/>
<a id="pl.205.5"></a><var>205.5</var>from the general fund to the commissioner of management and budget for deposit in <br/>
<a id="pl.205.6"></a><var>205.6</var>the Teachers Retirement Association to offset all or a portion of the current and future <br/>
<a id="pl.205.7"></a><var>205.7</var>unfunded actuarial accrued liability of the former Minneapolis Teachers Retirement <br/>
<a id="pl.205.8"></a><var>205.8</var>Fund Association.<br/>
<a id="pl.205.9"></a><var>205.9</var>    Subd. 2. <b>Financial requirements.</b> The appropriation in subdivision 1 is available to <br/>
<a id="pl.205.10"></a><var>205.10</var>the extent that financial requirements of with respect to the MERF division of the Public <br/>
<a id="pl.205.11"></a><var>205.11</var>Employees Retirement Association as the successor of the former Minneapolis Employees <br/>
<a id="pl.205.12"></a><var>205.12</var>Retirement Fund under section 
         <statute_ref>422A.101</statute_ref>, subdivision 3, 353.50 have been satisfied.<br/>
<br/>
<a id="bill.13.20.0"></a><a id="pl.205.13"></a><var>205.13</var>    Sec. 20. Minnesota Statutes 2008, section 354A.011, subdivision 27, is amended to <br/>
<a id="pl.205.14"></a><var>205.14</var>read:<br/>
<a id="pl.205.15"></a><var>205.15</var>    Subd. 27. <b>Teacher.</b> (a) "Teacher" means any person who renders service for a public <br/>
<a id="pl.205.16"></a><var>205.16</var>school district, other than a charter school, located in the corporate limits of Duluth or <br/>
<a id="pl.205.17"></a><var>205.17</var>St. Paul, as any of the following:<br/>
<a id="pl.205.18"></a><var>205.18</var>(1) a full-time employee in a position for which a valid license from the state <br/>
<a id="pl.205.19"></a><var>205.19</var>Department of Education is required;<br/>
<a id="pl.205.20"></a><var>205.20</var>(2) an employee of the teachers retirement fund association located in the city of <br/>
<a id="pl.205.21"></a><var>205.21</var>the first class unless the employee has exercised the option pursuant to Laws 1955, <br/>
<a id="pl.205.22"></a><var>205.22</var>chapter 10, section 1, to retain membership in the Minneapolis Employees Retirement <br/>
<a id="pl.205.23"></a><var>205.23</var>Fund established pursuant to chapter 422A;<br/>
<a id="pl.205.24"></a><var>205.24</var>(3) a part-time employee in a position for which a valid license from the state <br/>
<a id="pl.205.25"></a><var>205.25</var>Department of Education is required; or<br/>
<a id="pl.205.26"></a><var>205.26</var>(4) a part-time employee in a position for which a valid license from the state <br/>
<a id="pl.205.27"></a><var>205.27</var>Department of Education is required who also renders other nonteaching services for the <br/>
<a id="pl.205.28"></a><var>205.28</var>school district, unless the board of trustees of the teachers retirement fund association <br/>
<a id="pl.205.29"></a><var>205.29</var>determines that the combined employment is on the whole so substantially dissimilar to <br/>
<a id="pl.205.30"></a><var>205.30</var>teaching service that the service may not be covered by the association.<br/>
<a id="pl.205.31"></a><var>205.31</var>(b) The term does not mean any person who renders service in the school district <br/>
<a id="pl.205.32"></a><var>205.32</var>as any of the following:<br/>
<a id="pl.205.33"></a><var>205.33</var>(1) an independent contractor or the employee of an independent contractor;<br/>
<a id="pl.206.1"></a><var>206.1</var>(2) an employee who is a full-time teacher covered by the Teachers Retirement <br/>
<a id="pl.206.2"></a><var>206.2</var>Association or by another teachers retirement fund association established pursuant to this <br/>
<a id="pl.206.3"></a><var>206.3</var>chapter or chapter 354;<br/>
<a id="pl.206.4"></a><var>206.4</var>(3) an employee who is exempt from licensure pursuant to section 
         <statute_ref>122A.30</statute_ref>; <br/>
<a id="pl.206.5"></a><var>206.5</var>(4) an employee who is a teacher in a technical college located in a city of the first <br/>
<a id="pl.206.6"></a><var>206.6</var>class unless the person elects coverage by the applicable first class city teacher retirement <br/>
<a id="pl.206.7"></a><var>206.7</var>fund association under section 
         <statute_ref>354B.21, subdivision 2</statute_ref>; <br/>
<a id="pl.206.8"></a><var>206.8</var>(5) a teacher employed by a charter school, irrespective of the location of the <br/>
<a id="pl.206.9"></a><var>206.9</var>school; or<br/>
<a id="pl.206.10"></a><var>206.10</var>(6) an employee who is a part-time teacher in a technical college in a city of the first <br/>
<a id="pl.206.11"></a><var>206.11</var>class and who has elected coverage by the applicable first class city teacher retirement <br/>
<a id="pl.206.12"></a><var>206.12</var>fund association under section 
         <statute_ref>354B.21, subdivision 2</statute_ref>, but (i) the teaching service is <br/>
<a id="pl.206.13"></a><var>206.13</var>incidental to the regular nonteaching occupation of the person; (ii) the applicable technical <br/>
<a id="pl.206.14"></a><var>206.14</var>college stipulates annually in advance that the part-time teaching service will not exceed <br/>
<a id="pl.206.15"></a><var>206.15</var>300 hours in a fiscal year; and (iii) the part-time teaching actually does not exceed 300 <br/>
<a id="pl.206.16"></a><var>206.16</var>hours in the fiscal year to which the certification applies. <br/>
<br/>
<a id="bill.13.21.0"></a><a id="pl.206.17"></a><var>206.17</var>    Sec. 21. Minnesota Statutes 2008, section 354A.39, is amended to read:<br/>
<a id="pl.206.18"></a><var>206.18</var><b>354A.39 SERVICE IN OTHER PUBLIC RETIREMENT FUNDS; ANNUITY.</b><br/>
<a id="pl.206.19"></a><var>206.19</var>Any person who has been a member of the Minnesota State Retirement System, the <br/>
<a id="pl.206.20"></a><var>206.20</var>Public Employees Retirement Association including the Public Employees Retirement <br/>
<a id="pl.206.21"></a><var>206.21</var>Association Police and Fire Fund, the Teachers Retirement Association, the Minnesota <br/>
<a id="pl.206.22"></a><var>206.22</var>State Patrol Retirement Association, the legislators retirement plan, the constitutional <br/>
<a id="pl.206.23"></a><var>206.23</var>officers retirement plan, the Minneapolis Employees Retirement Fund, the Duluth <br/>
<a id="pl.206.24"></a><var>206.24</var>Teachers Retirement Fund Association new law coordinated program, the St. Paul <br/>
<a id="pl.206.25"></a><var>206.25</var>Teachers Retirement Fund Association coordinated program, or any other public employee <br/>
<a id="pl.206.26"></a><var>206.26</var>retirement system in the state of Minnesota having a like provision, but excluding all other <br/>
<a id="pl.206.27"></a><var>206.27</var>funds providing retirement benefits for police officers or firefighters shall be, is entitled, <br/>
<a id="pl.206.28"></a><var>206.28</var>when qualified, to an annuity from each fund if the person's total allowable service in all <br/>
<a id="pl.206.29"></a><var>206.29</var>of the funds or in any two or more of the funds totals three or more years, provided that <br/>
<a id="pl.206.30"></a><var>206.30</var>no portion of the allowable service upon which the retirement annuity from one fund is <br/>
<a id="pl.206.31"></a><var>206.31</var>based is used again in the computation for a retirement annuity from another fund and <br/>
<a id="pl.206.32"></a><var>206.32</var>provided further that the person has not taken a refund from any of funds or associations <br/>
<a id="pl.206.33"></a><var>206.33</var>since the person's membership in the fund or association has terminated. The annuity from <br/>
<a id="pl.206.34"></a><var>206.34</var>each fund or association shall must be determined by the appropriate provisions of the law <br/>
<a id="pl.206.35"></a><var>206.35</var>governing each fund or association, except that the requirement that a person must have at <br/>
<a id="pl.207.1"></a><var>207.1</var>least three years of allowable service in the respective fund or association shall does not <br/>
<a id="pl.207.2"></a><var>207.2</var>apply for the purposes of this section, provided that the aggregate service in two or more <br/>
<a id="pl.207.3"></a><var>207.3</var>of these funds equals three or more years.<br/>
<br/>
<a id="bill.13.22.0"></a><a id="pl.207.4"></a><var>207.4</var>    Sec. 22. Minnesota Statutes 2008, section 355.095, subdivision 1, is amended to read:<br/>
<a id="pl.207.5"></a><var>207.5</var>    Subdivision 1. <b>Agreement.</b> (a) The director, on behalf of the state, its political <br/>
<a id="pl.207.6"></a><var>207.6</var>subdivisions, and its other governmental employers, is authorized to enter into an <br/>
<a id="pl.207.7"></a><var>207.7</var>agreement with the Secretary of Health and Human Services to extend the provisions of <br/>
<a id="pl.207.8"></a><var>207.8</var>United States Code, title 42, section 426, 426-1, and 1395c, to the employees in paragraph <br/>
<a id="pl.207.9"></a><var>207.9</var>(b) who meet the requirements of United States Code, title 42, section 418(v)(2) and who <br/>
<a id="pl.207.10"></a><var>207.10</var>do not have coverage by the federal old age, survivors, and disability insurance program <br/>
<a id="pl.207.11"></a><var>207.11</var>for that employment under any previous modification of the agreement or previous <br/>
<a id="pl.207.12"></a><var>207.12</var>Medicare referendum.<br/>
<a id="pl.207.13"></a><var>207.13</var>(b) The applicable employees are:<br/>
<a id="pl.207.14"></a><var>207.14</var>(1) employees who are members of one of the retirement plans in Minnesota Statutes <br/>
<a id="pl.207.15"></a><var>207.15</var>2008, section 
         <statute_ref>356.30</statute_ref>, subdivision 3, except clauses (4) and (8), based on continuous <br/>
<a id="pl.207.16"></a><var>207.16</var>employment since March 31, 1986; and<br/>
<a id="pl.207.17"></a><var>207.17</var>(2) employees of a special authority or district who have been continuously <br/>
<a id="pl.207.18"></a><var>207.18</var>employed by the special authority or district since March 31, 1986.<br/>
<br/>
<a id="bill.13.23.0"></a><a id="pl.207.19"></a><var>207.19</var>    Sec. 23. Minnesota Statutes 2009 Supplement, section 356.20, subdivision 2, is <br/>
<a id="pl.207.20"></a><var>207.20</var>amended to read:<br/>
<a id="pl.207.21"></a><var>207.21</var>    Subd. 2. <b>Covered public pension plans and funds.</b> This section applies to the <br/>
<a id="pl.207.22"></a><var>207.22</var>following public pension plans:<br/>
<a id="pl.207.23"></a><var>207.23</var>    (1) the general state employees retirement plan of the Minnesota State Retirement <br/>
<a id="pl.207.24"></a><var>207.24</var>System;<br/>
<a id="pl.207.25"></a><var>207.25</var>    (2) the general employees retirement plan of the Public Employees Retirement <br/>
<a id="pl.207.26"></a><var>207.26</var>Association;<br/>
<a id="pl.207.27"></a><var>207.27</var>    (3) the Teachers Retirement Association;<br/>
<a id="pl.207.28"></a><var>207.28</var>    (4) the State Patrol retirement plan;<br/>
<a id="pl.207.29"></a><var>207.29</var>    (5) the St. Paul Teachers Retirement Fund Association;<br/>
<a id="pl.207.30"></a><var>207.30</var>    (6) the Duluth Teachers Retirement Fund Association;<br/>
<a id="pl.207.31"></a><var>207.31</var>    (7) the Minneapolis Employees Retirement Fund;<br/>
<a id="pl.207.32"></a><var>207.32</var>    (8) (7) the University of Minnesota faculty retirement plan;<br/>
<a id="pl.207.33"></a><var>207.33</var>    (9) (8) the University of Minnesota faculty supplemental retirement plan;<br/>
<a id="pl.207.34"></a><var>207.34</var>    (10) (9) the judges retirement fund;<br/>
<a id="pl.208.1"></a><var>208.1</var>    (11) (10) a police or firefighter's relief association specified or described in section <br/>
<statute_ref><a id="pl.208.2"></a><var>208.2</var>69.77, subdivision 1a
         </statute_ref>;<br/>
<a id="pl.208.3"></a><var>208.3</var>    (12) (11) a volunteer firefighter relief association governed by section 
         <statute_ref>69.771, <br/>
<a id="pl.208.4"></a><var>208.4</var>subdivision 1
         </statute_ref>; <br/>
<a id="pl.208.5"></a><var>208.5</var>    (13) (12) the public employees police and fire plan of the Public Employees <br/>
<a id="pl.208.6"></a><var>208.6</var>Retirement Association;<br/>
<a id="pl.208.7"></a><var>208.7</var>    (14) (13) the correctional state employees retirement plan of the Minnesota State <br/>
<a id="pl.208.8"></a><var>208.8</var>Retirement System; <br/>
<a id="pl.208.9"></a><var>208.9</var>    (15) (14) the local government correctional service retirement plan of the Public <br/>
<a id="pl.208.10"></a><var>208.10</var>Employees Retirement Association; and<br/>
<a id="pl.208.11"></a><var>208.11</var>(16) (15) the voluntary statewide lump-sum volunteer firefighter retirement plan.<br/>
<br/>
<a id="bill.13.24.0"></a><a id="pl.208.12"></a><var>208.12</var>    Sec. 24. Minnesota Statutes 2008, section 356.214, subdivision 1, is amended to read:<br/>
<a id="pl.208.13"></a><var>208.13</var>    Subdivision 1. <b>Actuary retention.</b> (a) The governing board or managing or <br/>
<a id="pl.208.14"></a><var>208.14</var>administrative official of each public pension plan and retirement fund or plan enumerated <br/>
<a id="pl.208.15"></a><var>208.15</var>in paragraph (b) shall contract with an established actuarial consulting firm to conduct <br/>
<a id="pl.208.16"></a><var>208.16</var>annual actuarial valuations and related services. The principal from the actuarial <br/>
<a id="pl.208.17"></a><var>208.17</var>consulting firm on the contract must be an approved actuary under section 
         <statute_ref>356.215, <br/>
<a id="pl.208.18"></a><var>208.18</var>subdivision 1
         </statute_ref>, paragraph (c). <br/>
<a id="pl.208.19"></a><var>208.19</var>    (b) Actuarial services must include the preparation of actuarial valuations and <br/>
<a id="pl.208.20"></a><var>208.20</var>related actuarial work for the following retirement plans:<br/>
<a id="pl.208.21"></a><var>208.21</var>    (1) the teachers retirement plan, Teachers Retirement Association;<br/>
<a id="pl.208.22"></a><var>208.22</var>    (2) the general state employees retirement plan, Minnesota State Retirement System;<br/>
<a id="pl.208.23"></a><var>208.23</var>    (3) the correctional employees retirement plan, Minnesota State Retirement System;<br/>
<a id="pl.208.24"></a><var>208.24</var>    (4) the State Patrol retirement plan, Minnesota State Retirement System;<br/>
<a id="pl.208.25"></a><var>208.25</var>    (5) the judges retirement plan, Minnesota State Retirement System;<br/>
<a id="pl.208.26"></a><var>208.26</var>    (6) the Minneapolis employees retirement plan, Minneapolis Employees Retirement <br/>
<a id="pl.208.27"></a><var>208.27</var>Fund;<br/>
<a id="pl.208.28"></a><var>208.28</var>    (7) (6) the public general employees retirement plan, Public Employees Retirement <br/>
<a id="pl.208.29"></a><var>208.29</var>Association, including the MERF division;<br/>
<a id="pl.208.30"></a><var>208.30</var>    (8) (7) the public employees police and fire plan, Public Employees Retirement <br/>
<a id="pl.208.31"></a><var>208.31</var>Association;<br/>
<a id="pl.208.32"></a><var>208.32</var>    (9) (8) the Duluth teachers retirement plan, Duluth Teachers Retirement Fund <br/>
<a id="pl.208.33"></a><var>208.33</var>Association;<br/>
<a id="pl.208.34"></a><var>208.34</var>    (10) (9) the St. Paul teachers retirement plan, St. Paul Teachers Retirement Fund <br/>
<a id="pl.208.35"></a><var>208.35</var>Association;<br/>
<a id="pl.209.1"></a><var>209.1</var>    (11) (10) the legislators retirement plan, Minnesota State Retirement System;<br/>
<a id="pl.209.2"></a><var>209.2</var>    (12) (11) the elective state officers retirement plan, Minnesota State Retirement <br/>
<a id="pl.209.3"></a><var>209.3</var>System; and<br/>
<a id="pl.209.4"></a><var>209.4</var>    (13) (12) local government correctional service retirement plan, Public Employees <br/>
<a id="pl.209.5"></a><var>209.5</var>Retirement Association.<br/>
<a id="pl.209.6"></a><var>209.6</var>    (c) The contracts must require completion of the annual actuarial valuation <br/>
<a id="pl.209.7"></a><var>209.7</var>calculations on a fiscal year basis, with the contents of the actuarial valuation calculations <br/>
<a id="pl.209.8"></a><var>209.8</var>as specified in section 
         <statute_ref>356.215</statute_ref>, and in conformity with the standards for actuarial work <br/>
<a id="pl.209.9"></a><var>209.9</var>adopted by the Legislative Commission on Pensions and Retirement. <br/>
<a id="pl.209.10"></a><var>209.10</var>    The contracts must require completion of annual experience data collection and <br/>
<a id="pl.209.11"></a><var>209.11</var>processing and a quadrennial published experience study for the plans listed in paragraph <br/>
<a id="pl.209.12"></a><var>209.12</var>(b), clauses (1), (2), and (7) (6), as provided for in the standards for actuarial work <br/>
<a id="pl.209.13"></a><var>209.13</var>adopted by the commission. The experience data collection, processing, and analysis <br/>
<a id="pl.209.14"></a><var>209.14</var>must evaluate the following:<br/>
<a id="pl.209.15"></a><var>209.15</var>    (1) individual salary progression;<br/>
<a id="pl.209.16"></a><var>209.16</var>    (2) the rate of return on investments based on the current asset value;<br/>
<a id="pl.209.17"></a><var>209.17</var>    (3) payroll growth;<br/>
<a id="pl.209.18"></a><var>209.18</var>    (4) mortality;<br/>
<a id="pl.209.19"></a><var>209.19</var>    (5) retirement age;<br/>
<a id="pl.209.20"></a><var>209.20</var>    (6) withdrawal; and<br/>
<a id="pl.209.21"></a><var>209.21</var>    (7) disablement.<br/>
<a id="pl.209.22"></a><var>209.22</var>    (d) The actuary shall annually prepare a report to the governing or managing board <br/>
<a id="pl.209.23"></a><var>209.23</var>or administrative official and the legislature, summarizing the results of the actuarial <br/>
<a id="pl.209.24"></a><var>209.24</var>valuation calculations. The actuary shall include with the report any recommendations <br/>
<a id="pl.209.25"></a><var>209.25</var>concerning the appropriateness of the support rates to achieve proper funding of <br/>
<a id="pl.209.26"></a><var>209.26</var>the retirement plans by the required funding dates. The actuary shall, as part of the <br/>
<a id="pl.209.27"></a><var>209.27</var>quadrennial experience study, include recommendations on the appropriateness of the <br/>
<a id="pl.209.28"></a><var>209.28</var>actuarial valuation assumptions required for evaluation in the study.<br/>
<a id="pl.209.29"></a><var>209.29</var>    (e) If the actuarial gain and loss analysis in the actuarial valuation calculations <br/>
<a id="pl.209.30"></a><var>209.30</var>indicates a persistent pattern of sizable gains or losses, the governing or managing board <br/>
<a id="pl.209.31"></a><var>209.31</var>or administrative official shall direct the actuary to prepare a special experience study for a <br/>
<a id="pl.209.32"></a><var>209.32</var>plan listed in paragraph (b), clause (3), (4), (5), (6) (7), (8), (9), (10), (11), or (12), or (13), <br/>
<a id="pl.209.33"></a><var>209.33</var>in the manner provided for in the standards for actuarial work adopted by the commission.<br/>
<br/>
<a id="bill.13.25.0"></a><a id="pl.209.34"></a><var>209.34</var>    Sec. 25. Minnesota Statutes 2008, section 356.30, subdivision 3, is amended to read:<br/>
<a id="pl.209.35"></a><var>209.35</var>    Subd. 3. <b>Covered plans.</b> This section applies to the following retirement plans:<br/>
<a id="pl.210.1"></a><var>210.1</var>(1) the general state employees retirement plan of the Minnesota State Retirement <br/>
<a id="pl.210.2"></a><var>210.2</var>System, established under chapter 352;<br/>
<a id="pl.210.3"></a><var>210.3</var>(2) the correctional state employees retirement plan of the Minnesota State <br/>
<a id="pl.210.4"></a><var>210.4</var>Retirement System, established under chapter 352;<br/>
<a id="pl.210.5"></a><var>210.5</var>(3) the unclassified employees retirement program, established under chapter 352D;<br/>
<a id="pl.210.6"></a><var>210.6</var>(4) the State Patrol retirement plan, established under chapter 352B;<br/>
<a id="pl.210.7"></a><var>210.7</var>(5) the legislators retirement plan, established under chapter 3A;<br/>
<a id="pl.210.8"></a><var>210.8</var>(6) the elective state officers retirement plan, established under chapter 352C;<br/>
<a id="pl.210.9"></a><var>210.9</var>(7) the general employees retirement plan of the Public Employees Retirement <br/>
<a id="pl.210.10"></a><var>210.10</var>Association, established under chapter 353, including the MERF division of the Public <br/>
<a id="pl.210.11"></a><var>210.11</var>Employees Retirement Association;<br/>
<a id="pl.210.12"></a><var>210.12</var>(8) the public employees police and fire retirement plan of the Public Employees <br/>
<a id="pl.210.13"></a><var>210.13</var>Retirement Association, established under chapter 353;<br/>
<a id="pl.210.14"></a><var>210.14</var>(9) the local government correctional service retirement plan of the Public <br/>
<a id="pl.210.15"></a><var>210.15</var>Employees Retirement Association, established under chapter 353E;<br/>
<a id="pl.210.16"></a><var>210.16</var>(10) the Teachers Retirement Association, established under chapter 354;<br/>
<a id="pl.210.17"></a><var>210.17</var>(11) the Minneapolis Employees Retirement Fund, established under chapter 422A;<br/>
<a id="pl.210.18"></a><var>210.18</var>(12) (11) the St. Paul Teachers Retirement Fund Association, established under <br/>
<a id="pl.210.19"></a><var>210.19</var>chapter 354A;<br/>
<a id="pl.210.20"></a><var>210.20</var>(13) (12) the Duluth Teachers Retirement Fund Association, established under <br/>
<a id="pl.210.21"></a><var>210.21</var>chapter 354A; and<br/>
<a id="pl.210.22"></a><var>210.22</var>(14) (13) the judges retirement fund, established by chapter 490. <br/>
<br/>
<a id="bill.13.26.0"></a><a id="pl.210.23"></a><var>210.23</var>    Sec. 26. Minnesota Statutes 2008, section 356.302, subdivision 1, is amended to read:<br/>
<a id="pl.210.24"></a><var>210.24</var>    Subdivision 1. <b>Definitions.</b> (a) The terms used in this section are defined in this <br/>
<a id="pl.210.25"></a><var>210.25</var>subdivision.<br/>
<a id="pl.210.26"></a><var>210.26</var>(b) "Average salary" means the highest average of covered salary for the appropriate <br/>
<a id="pl.210.27"></a><var>210.27</var>period of credited service that is required for the calculation of a disability benefit by <br/>
<a id="pl.210.28"></a><var>210.28</var>the covered retirement plan and that is drawn from any period of credited service and <br/>
<a id="pl.210.29"></a><var>210.29</var>successive years of covered salary in a covered retirement plan.<br/>
<a id="pl.210.30"></a><var>210.30</var>(c) "Covered retirement plan" or "plan" means a retirement plan listed in subdivision <br/>
<a id="pl.210.31"></a><var>210.31</var>7.<br/>
<a id="pl.210.32"></a><var>210.32</var>(d) "Duty-related" means a disabling illness or injury that occurred while the person <br/>
<a id="pl.210.33"></a><var>210.33</var>was actively engaged in employment duties or that arose out of the person's active <br/>
<a id="pl.210.34"></a><var>210.34</var>employment duties.<br/>
<a id="pl.211.1"></a><var>211.1</var>(e) "General employee retirement plan" means a covered retirement plan listed in <br/>
<a id="pl.211.2"></a><var>211.2</var>subdivision 7, clauses (1) to (8) (6) and (13) (12).<br/>
<a id="pl.211.3"></a><var>211.3</var>(f) "Occupationally disabled" means the condition of having a medically <br/>
<a id="pl.211.4"></a><var>211.4</var>determinable physical or mental impairment that makes a person unable to satisfactorily <br/>
<a id="pl.211.5"></a><var>211.5</var>perform the minimum requirements of the person's employment position or a substantially <br/>
<a id="pl.211.6"></a><var>211.6</var>similar employment position.<br/>
<a id="pl.211.7"></a><var>211.7</var>(g) "Public safety employee retirement plan" means a covered retirement plan listed <br/>
<a id="pl.211.8"></a><var>211.8</var>in subdivision 7, clauses (9) (7) to (12) (11).<br/>
<a id="pl.211.9"></a><var>211.9</var>(h) "Totally and permanently disabled" means the condition of having a medically <br/>
<a id="pl.211.10"></a><var>211.10</var>determinable physical or mental impairment that makes a person unable to engage in any <br/>
<a id="pl.211.11"></a><var>211.11</var>substantial gainful activity and that is expected to continue or has continued for a period <br/>
<a id="pl.211.12"></a><var>211.12</var>of at least one year or that is expected to result directly in the person's death.<br/>
<br/>
<a id="bill.13.27.0"></a><a id="pl.211.13"></a><var>211.13</var>    Sec. 27. Minnesota Statutes 2008, section 356.302, subdivision 7, is amended to read:<br/>
<a id="pl.211.14"></a><var>211.14</var>    Subd. 7. <b>Covered retirement plans.</b> This section applies to the following <br/>
<a id="pl.211.15"></a><var>211.15</var>retirement plans:<br/>
<a id="pl.211.16"></a><var>211.16</var>(1) the general state employees retirement plan of the Minnesota State Retirement <br/>
<a id="pl.211.17"></a><var>211.17</var>System, established by chapter 352;<br/>
<a id="pl.211.18"></a><var>211.18</var>(2) the unclassified state employees retirement program of the Minnesota State <br/>
<a id="pl.211.19"></a><var>211.19</var>Retirement System, established by chapter 352D;<br/>
<a id="pl.211.20"></a><var>211.20</var>(3) the general employees retirement plan of the Public Employees Retirement <br/>
<a id="pl.211.21"></a><var>211.21</var>Association, established by chapter 353, including the MERF division of the Public <br/>
<a id="pl.211.22"></a><var>211.22</var>Employees Retirement Association;<br/>
<a id="pl.211.23"></a><var>211.23</var>(4) the Teachers Retirement Association, established by chapter 354;<br/>
<a id="pl.211.24"></a><var>211.24</var>(5) the Duluth Teachers Retirement Fund Association, established by chapter 354A;<br/>
<a id="pl.211.25"></a><var>211.25</var>(6) the St. Paul Teachers Retirement Fund Association, established by chapter 354A;<br/>
<a id="pl.211.26"></a><var>211.26</var>(7) the Minneapolis Employees Retirement Fund, established by chapter 422A;<br/>
<a id="pl.211.27"></a><var>211.27</var>(8) (7) the state correctional employees retirement plan of the Minnesota State <br/>
<a id="pl.211.28"></a><var>211.28</var>Retirement System, established by chapter 352;<br/>
<a id="pl.211.29"></a><var>211.29</var>(9) (8) the State Patrol retirement plan, established by chapter 352B;<br/>
<a id="pl.211.30"></a><var>211.30</var>(10) (9) the public employees police and fire plan of the Public Employees <br/>
<a id="pl.211.31"></a><var>211.31</var>Retirement Association, established by chapter 353;<br/>
<a id="pl.211.32"></a><var>211.32</var>(11) (10) the local government correctional service retirement plan of the Public <br/>
<a id="pl.211.33"></a><var>211.33</var>Employees Retirement Association, established by chapter 353E; and<br/>
<a id="pl.211.34"></a><var>211.34</var>(12) (11) the judges retirement plan, established by chapter 490. <br/>
<br/>
<a id="bill.13.28.0"></a><a id="pl.212.1"></a><var>212.1</var>    Sec. 28. Minnesota Statutes 2008, section 356.303, subdivision 4, is amended to read:<br/>
<a id="pl.212.2"></a><var>212.2</var>    Subd. 4. <b>Covered retirement plans.</b> This section applies to the following <br/>
<a id="pl.212.3"></a><var>212.3</var>retirement plans:<br/>
<a id="pl.212.4"></a><var>212.4</var>(1) the legislators retirement plan, established by chapter 3A;<br/>
<a id="pl.212.5"></a><var>212.5</var>(2) the general state employees retirement plan of the Minnesota State Retirement <br/>
<a id="pl.212.6"></a><var>212.6</var>System, established by chapter 352;<br/>
<a id="pl.212.7"></a><var>212.7</var>(3) the correctional state employees retirement plan of the Minnesota State <br/>
<a id="pl.212.8"></a><var>212.8</var>Retirement System, established by chapter 352;<br/>
<a id="pl.212.9"></a><var>212.9</var>(4) the State Patrol retirement plan, established by chapter 352B;<br/>
<a id="pl.212.10"></a><var>212.10</var>(5) the elective state officers retirement plan, established by chapter 352C;<br/>
<a id="pl.212.11"></a><var>212.11</var>(6) the unclassified state employees retirement program, established by chapter <br/>
<a id="pl.212.12"></a><var>212.12</var>352D;<br/>
<a id="pl.212.13"></a><var>212.13</var>(7) the general employees retirement plan of the Public Employees Retirement <br/>
<a id="pl.212.14"></a><var>212.14</var>Association, established by chapter 353, including the MERF division of the Public <br/>
<a id="pl.212.15"></a><var>212.15</var>Employees Retirement Association;<br/>
<a id="pl.212.16"></a><var>212.16</var>(8) the public employees police and fire plan of the Public Employees Retirement <br/>
<a id="pl.212.17"></a><var>212.17</var>Association, established by chapter 353;<br/>
<a id="pl.212.18"></a><var>212.18</var>(9) the local government correctional service retirement plan of the Public <br/>
<a id="pl.212.19"></a><var>212.19</var>Employees Retirement Association, established by chapter 353E;<br/>
<a id="pl.212.20"></a><var>212.20</var>(10) the Teachers Retirement Association, established by chapter 354;<br/>
<a id="pl.212.21"></a><var>212.21</var>(11) the Duluth Teachers Retirement Fund Association, established by chapter 354A;<br/>
<a id="pl.212.22"></a><var>212.22</var>(12) the St. Paul Teachers Retirement Fund Association, established by chapter <br/>
<a id="pl.212.23"></a><var>212.23</var>354A; and<br/>
<a id="pl.212.24"></a><var>212.24</var>(13) the Minneapolis Employees Retirement Fund, established by chapter 422A; and<br/>
<a id="pl.212.25"></a><var>212.25</var>(14) (13) the judges retirement fund, established by chapter 490. <br/>
<br/>
<a id="bill.13.29.0"></a><a id="pl.212.26"></a><var>212.26</var>    Sec. 29. Minnesota Statutes 2009 Supplement, section 356.32, subdivision 2, is <br/>
<a id="pl.212.27"></a><var>212.27</var>amended to read:<br/>
<a id="pl.212.28"></a><var>212.28</var>    Subd. 2. <b>Covered retirement plans.</b> The provisions of this section apply to the <br/>
<a id="pl.212.29"></a><var>212.29</var>following retirement plans:<br/>
<a id="pl.212.30"></a><var>212.30</var>(1) the general state employees retirement plan of the Minnesota State Retirement <br/>
<a id="pl.212.31"></a><var>212.31</var>System, established under chapter 352;<br/>
<a id="pl.212.32"></a><var>212.32</var>(2) the correctional state employees retirement plan of the Minnesota State <br/>
<a id="pl.212.33"></a><var>212.33</var>Retirement System, established under chapter 352;<br/>
<a id="pl.212.34"></a><var>212.34</var>(3) the State Patrol retirement plan, established under chapter 352B;<br/>
<a id="pl.213.1"></a><var>213.1</var>(4) the general employees retirement plan of the Public Employees Retirement <br/>
<a id="pl.213.2"></a><var>213.2</var>Association, established under chapter 353, including the MERF division of the Public <br/>
<a id="pl.213.3"></a><var>213.3</var>Employees Retirement Association;<br/>
<a id="pl.213.4"></a><var>213.4</var>(5) the public employees police and fire plan of the Public Employees Retirement <br/>
<a id="pl.213.5"></a><var>213.5</var>Association, established under chapter 353;<br/>
<a id="pl.213.6"></a><var>213.6</var>(6) the Teachers Retirement Association, established under chapter 354;<br/>
<a id="pl.213.7"></a><var>213.7</var>(7) the Minneapolis Employees Retirement Fund, established under chapter 422A;<br/>
<a id="pl.213.8"></a><var>213.8</var>(8) (7) the Duluth Teachers Retirement Fund Association, established under chapter <br/>
<a id="pl.213.9"></a><var>213.9</var>354A; and<br/>
<a id="pl.213.10"></a><var>213.10</var>(9) (8) the St. Paul Teachers Retirement Fund Association, established under chapter <br/>
<a id="pl.213.11"></a><var>213.11</var>354A.<br/>
<br/>
<a id="bill.13.30.0"></a><a id="pl.213.12"></a><var>213.12</var>    Sec. 30. Minnesota Statutes 2009 Supplement, section 356.401, subdivision 3, is <br/>
<a id="pl.213.13"></a><var>213.13</var>amended to read:<br/>
<a id="pl.213.14"></a><var>213.14</var>    Subd. 3. <b>Covered retirement plans.</b> The provisions of this section apply to the <br/>
<a id="pl.213.15"></a><var>213.15</var>following retirement plans:<br/>
<a id="pl.213.16"></a><var>213.16</var>(1) the legislators retirement plan, established by chapter 3A;<br/>
<a id="pl.213.17"></a><var>213.17</var>(2) the general state employees retirement plan of the Minnesota State Retirement <br/>
<a id="pl.213.18"></a><var>213.18</var>System, established by chapter 352;<br/>
<a id="pl.213.19"></a><var>213.19</var>(3) the correctional state employees retirement plan of the Minnesota State <br/>
<a id="pl.213.20"></a><var>213.20</var>Retirement System, established by chapter 352;<br/>
<a id="pl.213.21"></a><var>213.21</var>(4) the State Patrol retirement plan, established by chapter 352B;<br/>
<a id="pl.213.22"></a><var>213.22</var>(5) the elective state officers retirement plan, established by chapter 352C;<br/>
<a id="pl.213.23"></a><var>213.23</var>(6) the unclassified state employees retirement program, established by chapter <br/>
<a id="pl.213.24"></a><var>213.24</var>352D;<br/>
<a id="pl.213.25"></a><var>213.25</var>(7) the general employees retirement plan of the Public Employees Retirement <br/>
<a id="pl.213.26"></a><var>213.26</var>Association, established by chapter 353, including the MERF division of the Public <br/>
<a id="pl.213.27"></a><var>213.27</var>Employees Retirement Association;<br/>
<a id="pl.213.28"></a><var>213.28</var>(8) the public employees police and fire plan of the Public Employees Retirement <br/>
<a id="pl.213.29"></a><var>213.29</var>Association, established by chapter 353;<br/>
<a id="pl.213.30"></a><var>213.30</var>(9) the public employees defined contribution plan, established by chapter 353D;<br/>
<a id="pl.213.31"></a><var>213.31</var>(10) the local government correctional service retirement plan of the Public <br/>
<a id="pl.213.32"></a><var>213.32</var>Employees Retirement Association, established by chapter 353E;<br/>
<a id="pl.213.33"></a><var>213.33</var>(11) the voluntary statewide lump-sum volunteer firefighter retirement plan, <br/>
<a id="pl.213.34"></a><var>213.34</var>established by chapter 353G;<br/>
<a id="pl.213.35"></a><var>213.35</var>(12) the Teachers Retirement Association, established by chapter 354;<br/>
<a id="pl.214.1"></a><var>214.1</var>(13) the Duluth Teachers Retirement Fund Association, established by chapter 354A;<br/>
<a id="pl.214.2"></a><var>214.2</var>(14) the St. Paul Teachers Retirement Fund Association, established by chapter <br/>
<a id="pl.214.3"></a><var>214.3</var>354A;<br/>
<a id="pl.214.4"></a><var>214.4</var>(15) the individual retirement account plan, established by chapter 354B;<br/>
<a id="pl.214.5"></a><var>214.5</var>(16) the higher education supplemental retirement plan, established by chapter 354C;<br/>
<a id="pl.214.6"></a><var>214.6</var>(17) the Minneapolis Employees Retirement Fund, established by chapter 422A;<br/>
<a id="pl.214.7"></a><var>214.7</var>(18) (17) the Minneapolis Police Relief Association, established by chapter 423B;<br/>
<a id="pl.214.8"></a><var>214.8</var>(19) (18) the Minneapolis Firefighters Relief Association, established by chapter <br/>
<a id="pl.214.9"></a><var>214.9</var>423C; and<br/>
<a id="pl.214.10"></a><var>214.10</var>(20) (19) the judges retirement fund, established by chapter 490.<br/>
<br/>
<a id="bill.13.31.0"></a><a id="pl.214.11"></a><var>214.11</var>    Sec. 31. Minnesota Statutes 2008, section 356.407, subdivision 2, is amended to read:<br/>
<a id="pl.214.12"></a><var>214.12</var>    Subd. 2. <b>Covered funds.</b> The provisions of this section apply to the following <br/>
<a id="pl.214.13"></a><var>214.13</var>retirement funds:<br/>
<a id="pl.214.14"></a><var>214.14</var>(1) the general employees retirement plan of the Public Employees Retirement <br/>
<a id="pl.214.15"></a><var>214.15</var>Association established under chapter 353, including the MERF division of the Public <br/>
<a id="pl.214.16"></a><var>214.16</var>Employees Retirement Association;<br/>
<a id="pl.214.17"></a><var>214.17</var>(2) the public employees police and fire plan of the Public Employees Retirement <br/>
<a id="pl.214.18"></a><var>214.18</var>Association established under chapter 353;<br/>
<a id="pl.214.19"></a><var>214.19</var>(3) the State Patrol retirement plan established under chapter 352B;<br/>
<a id="pl.214.20"></a><var>214.20</var>(4) the legislators retirement plan established under chapter 3A;<br/>
<a id="pl.214.21"></a><var>214.21</var>(5) the elective state officers retirement plan established under chapter 352C; and<br/>
<a id="pl.214.22"></a><var>214.22</var>(6) the Teachers Retirement Association established under chapter 354; and.<br/>
<a id="pl.214.23"></a><var>214.23</var>(7) the Minneapolis Employees Retirement Fund established under chapter 422A.<br/>
<br/>
<a id="bill.13.32.0"></a><a id="pl.214.24"></a><var>214.24</var>    Sec. 32. Minnesota Statutes 2009 Supplement, section 356.415, subdivision 2, is <br/>
<a id="pl.214.25"></a><var>214.25</var>amended to read:<br/>
<a id="pl.214.26"></a><var>214.26</var>    Subd. 2. <b>Covered retirement plans.</b> The provisions of this section apply to the <br/>
<a id="pl.214.27"></a><var>214.27</var>following retirement plans:<br/>
<a id="pl.214.28"></a><var>214.28</var>(1) the legislators retirement plan established under chapter 3A;<br/>
<a id="pl.214.29"></a><var>214.29</var>(2) the correctional state employees retirement plan of the Minnesota State <br/>
<a id="pl.214.30"></a><var>214.30</var>Retirement System established under chapter 352;<br/>
<a id="pl.214.31"></a><var>214.31</var>(3) the general state employees retirement plan of the Minnesota State Retirement <br/>
<a id="pl.214.32"></a><var>214.32</var>System established under chapter 352;<br/>
<a id="pl.214.33"></a><var>214.33</var>(4) the State Patrol retirement plan established under chapter 352B;<br/>
<a id="pl.214.34"></a><var>214.34</var>(5) the elective state officers retirement plan established under chapter 352C;<br/>
<a id="pl.215.1"></a><var>215.1</var>(6) the general employees retirement plan of the Public Employees Retirement <br/>
<a id="pl.215.2"></a><var>215.2</var>Association established under chapter 353, including the MERF division of the Public <br/>
<a id="pl.215.3"></a><var>215.3</var>Employees Retirement Association;<br/>
<a id="pl.215.4"></a><var>215.4</var>(7) the public employees police and fire retirement plan of the Public Employees <br/>
<a id="pl.215.5"></a><var>215.5</var>Retirement Association established under chapter 353;<br/>
<a id="pl.215.6"></a><var>215.6</var>(8) the local government correctional employees retirement plan of the Public <br/>
<a id="pl.215.7"></a><var>215.7</var>Employees Retirement Association established under chapter 353E;<br/>
<a id="pl.215.8"></a><var>215.8</var>(9) the teachers retirement plan established under chapter 354; and<br/>
<a id="pl.215.9"></a><var>215.9</var>(10) the judges retirement plan established under chapter 490.<br/>
<br/>
<a id="bill.13.33.0"></a><a id="pl.215.10"></a><var>215.10</var>    Sec. 33. Minnesota Statutes 2008, section 356.431, subdivision 1, is amended to read:<br/>
<a id="pl.215.11"></a><var>215.11</var>    Subdivision 1. <b>Lump-sum postretirement payment conversion.</b> For benefits paid <br/>
<a id="pl.215.12"></a><var>215.12</var>after December 31, 2001, to eligible persons under sections section 356.42 and 356.43, <br/>
<a id="pl.215.13"></a><var>215.13</var>the amount of the most recent lump-sum benefit payable to an eligible recipient under <br/>
<a id="pl.215.14"></a><var>215.14</var>sections section 
<statute_ref>356.42</statute_ref> and 
<statute_ref>356.43</statute_ref> must be divided by 12. The result must be added to <br/>
<a id="pl.215.15"></a><var>215.15</var>the monthly annuity or benefit otherwise payable to an eligible recipient, must become a <br/>
<a id="pl.215.16"></a><var>215.16</var>permanent part of the benefit recipient's pension, and must be included in any pension <br/>
<a id="pl.215.17"></a><var>215.17</var>benefit subject to future increases.<br/>
<br/>
<a id="bill.13.34.0"></a><a id="pl.215.18"></a><var>215.18</var>    Sec. 34. Minnesota Statutes 2008, section 356.465, subdivision 3, is amended to read:<br/>
<a id="pl.215.19"></a><var>215.19</var>    Subd. 3. <b>Covered retirement plans.</b> The provisions of this section apply to the <br/>
<a id="pl.215.20"></a><var>215.20</var>following retirement plans:<br/>
<a id="pl.215.21"></a><var>215.21</var>(1) the general state employees retirement plan of the Minnesota State Retirement <br/>
<a id="pl.215.22"></a><var>215.22</var>System established under chapter 352;<br/>
<a id="pl.215.23"></a><var>215.23</var>(2) the correctional state employees retirement plan of the Minnesota State <br/>
<a id="pl.215.24"></a><var>215.24</var>Retirement System established under chapter 352;<br/>
<a id="pl.215.25"></a><var>215.25</var>(3) the State Patrol retirement plan established under chapter 352B;<br/>
<a id="pl.215.26"></a><var>215.26</var>(4) the legislators retirement plan established under chapter 3A;<br/>
<a id="pl.215.27"></a><var>215.27</var>(5) the judges retirement plan established under chapter 490;<br/>
<a id="pl.215.28"></a><var>215.28</var>(6) the general employees retirement plan of the Public Employees Retirement <br/>
<a id="pl.215.29"></a><var>215.29</var>Association established under chapter 353, including the MERF division of the Public <br/>
<a id="pl.215.30"></a><var>215.30</var>Employees Retirement Association;<br/>
<a id="pl.215.31"></a><var>215.31</var>(7) the public employees police and fire plan of the Public Employees Retirement <br/>
<a id="pl.215.32"></a><var>215.32</var>Association established under chapter 353;<br/>
<a id="pl.215.33"></a><var>215.33</var>(8) the teachers retirement plan established under chapter 354;<br/>
<a id="pl.216.1"></a><var>216.1</var>(9) the Duluth Teachers Retirement Fund Association established under chapter <br/>
<a id="pl.216.2"></a><var>216.2</var>354A;<br/>
<a id="pl.216.3"></a><var>216.3</var>(10) the St. Paul Teachers Retirement Fund Association established under chapter <br/>
<a id="pl.216.4"></a><var>216.4</var>354A;<br/>
<a id="pl.216.5"></a><var>216.5</var>(11) the Minneapolis Employees Retirement Fund established under chapter 422A;<br/>
<a id="pl.216.6"></a><var>216.6</var>(12) (11) the Minneapolis Firefighters Relief Association established under chapter <br/>
<a id="pl.216.7"></a><var>216.7</var>423C;<br/>
<a id="pl.216.8"></a><var>216.8</var>(13) (12) the Minneapolis Police Relief Association established under chapter <br/>
<a id="pl.216.9"></a><var>216.9</var>423B; and<br/>
<a id="pl.216.10"></a><var>216.10</var>(14) (13) the local government correctional service retirement plan of the Public <br/>
<a id="pl.216.11"></a><var>216.11</var>Employees Retirement Association established under chapter 353E.<br/>
<br/>
<a id="bill.13.35.0"></a><a id="pl.216.12"></a><var>216.12</var>    Sec. 35. Minnesota Statutes 2008, section 356.64, is amended to read:<br/>
<a id="pl.216.13"></a><var>216.13</var><b>356.64 REAL ESTATE INVESTMENTS.</b><br/>
<a id="pl.216.14"></a><var>216.14</var>(a) Notwithstanding any law to the contrary, any public pension plan whose assets <br/>
<a id="pl.216.15"></a><var>216.15</var>are not invested by the State Board of Investment may invest its funds in Minnesota situs <br/>
<a id="pl.216.16"></a><var>216.16</var>nonfarm real estate ownership interests or loans secured by mortgages or deeds of trust if <br/>
<a id="pl.216.17"></a><var>216.17</var>the investment is consistent with section 
         <statute_ref>356A.04</statute_ref>.  <br/>
<a id="pl.216.18"></a><var>216.18</var>(b) Except to the extent authorized in the case of the Minneapolis Employees <br/>
<a id="pl.216.19"></a><var>216.19</var>Retirement Fund under section 
<statute_ref>422A.05, subdivision 2c</statute_ref>, paragraph (a), An investment <br/>
<a id="pl.216.20"></a><var>216.20</var>otherwise authorized by this section must also comply with the requirements and <br/>
<a id="pl.216.21"></a><var>216.21</var>limitations of section 
         <statute_ref>11A.24, subdivision 6</statute_ref>.  <br/>
<br/>
<a id="bill.13.36.0"></a><a id="pl.216.22"></a><var>216.22</var>    Sec. 36. Minnesota Statutes 2008, section 356.65, subdivision 2, is amended to read:<br/>
<a id="pl.216.23"></a><var>216.23</var>    Subd. 2.  <b>Disposition of abandoned amounts.</b> Any unclaimed public pension <br/>
<a id="pl.216.24"></a><var>216.24</var>fund amounts existing in any public pension fund are presumed to be abandoned, but are <br/>
<a id="pl.216.25"></a><var>216.25</var>not subject to the provisions of sections 
         <statute_ref>345.31</statute_ref> to 
         <statute_ref>345.60</statute_ref>. Unless the benefit plan of <br/>
<a id="pl.216.26"></a><var>216.26</var>the public pension fund specifically provides for a different disposition of unclaimed or <br/>
<a id="pl.216.27"></a><var>216.27</var>abandoned funds or amounts, any unclaimed public pension fund amounts cancel and <br/>
<a id="pl.216.28"></a><var>216.28</var>must be credited to the public pension fund. If the unclaimed public pension fund amount <br/>
<a id="pl.216.29"></a><var>216.29</var>exceeds $25 and the inactive or former member again becomes a member of the applicable <br/>
<a id="pl.216.30"></a><var>216.30</var>public pension plan or applies for a retirement annuity under section 
         <statute_ref>3A.12</statute_ref>, 
         <statute_ref>352.72</statute_ref>, <br/>
<statute_ref><a id="pl.216.31"></a><var>216.31</var>352B.30
         </statute_ref>, 
         <statute_ref>353.71</statute_ref>, 
         <statute_ref>354.60</statute_ref>, or 356.30, or 
<statute_ref>422A.16, subdivision 8</statute_ref>, whichever applies, the <br/>
<a id="pl.216.32"></a><var>216.32</var>canceled amount must be restored to the credit of the person. <br/>
<br/>
<a id="bill.13.37.0"></a><a id="pl.217.1"></a><var>217.1</var>    Sec. 37. Minnesota Statutes 2008, section 356.91, is amended to read:<br/>
<a id="pl.217.2"></a><var>217.2</var><b>356.91 VOLUNTARY MEMBERSHIP DUES DEDUCTION.</b><br/>
<a id="pl.217.3"></a><var>217.3</var>    (a) Upon written authorization of a person receiving an annuity from a public <br/>
<a id="pl.217.4"></a><var>217.4</var>pension fund administered by the Minnesota State Retirement System, or the Public <br/>
<a id="pl.217.5"></a><var>217.5</var>Employees Retirement Association, or the Minneapolis Employees Retirement Fund, the <br/>
<a id="pl.217.6"></a><var>217.6</var>executive director of the public pension fund may deduct from the retirement annuity an <br/>
<a id="pl.217.7"></a><var>217.7</var>amount requested by the annuitant to be paid as dues to any labor organization that is an <br/>
<a id="pl.217.8"></a><var>217.8</var>exclusive bargaining agent representing public employees or an organization representing <br/>
<a id="pl.217.9"></a><var>217.9</var>retired public employees of which the annuitant is a member and shall pay the amount to <br/>
<a id="pl.217.10"></a><var>217.10</var>the organization so designated by the annuitant.<br/>
<a id="pl.217.11"></a><var>217.11</var>    (b) A pension fund and the plan fiduciaries which authorize or administer deductions <br/>
<a id="pl.217.12"></a><var>217.12</var>of dues payments under paragraph (a) are not liable for failure to properly deduct or <br/>
<a id="pl.217.13"></a><var>217.13</var>transmit the dues amounts, provided that the fund and the fiduciaries have acted in good <br/>
<a id="pl.217.14"></a><var>217.14</var>faith.<br/>
<a id="pl.217.15"></a><var>217.15</var>    (c) The deductions under paragraph (a) may occur no more frequently than two <br/>
<a id="pl.217.16"></a><var>217.16</var>times per year and may not be used for political purposes.<br/>
<a id="pl.217.17"></a><var>217.17</var>    (d) Any labor organization specified in paragraph (a) shall reimburse the public <br/>
<a id="pl.217.18"></a><var>217.18</var>pension fund for the administrative expense of withholding premium amounts.<br/>
<br/>
<a id="bill.13.38.0"></a><a id="pl.217.19"></a><var>217.19</var>    Sec. 38. Minnesota Statutes 2009 Supplement, section 356.96, subdivision 1, is <br/>
<a id="pl.217.20"></a><var>217.20</var>amended to read:<br/>
<a id="pl.217.21"></a><var>217.21</var>    Subdivision 1. <b>Definitions.</b> (a) Unless the language or context clearly indicates that <br/>
<a id="pl.217.22"></a><var>217.22</var>a different meaning is intended, for the purpose of this section, the terms in paragraphs <br/>
<a id="pl.217.23"></a><var>217.23</var>(b) to (e) have the meanings given them.<br/>
<a id="pl.217.24"></a><var>217.24</var>    (b) "Chief administrative officer" means the executive director of a covered pension <br/>
<a id="pl.217.25"></a><var>217.25</var>plan or the executive director's designee or representative.<br/>
<a id="pl.217.26"></a><var>217.26</var>    (c) "Covered pension plan" means a plan enumerated in section 
         <statute_ref>356.20, subdivision <br/>
<a id="pl.217.27"></a><var>217.27</var>2
         </statute_ref>, clauses (1) to (4), (10) (9), and (13) (12) to (16) (15), but does not mean the <br/>
<a id="pl.217.28"></a><var>217.28</var>deferred compensation plan administered under sections 
         <statute_ref>352.965</statute_ref> and 
         <statute_ref>352.97</statute_ref> or to the <br/>
<a id="pl.217.29"></a><var>217.29</var>postretirement health care savings plan administered under section 
         <statute_ref>352.98</statute_ref>.<br/>
<a id="pl.217.30"></a><var>217.30</var>    (d) "Governing board" means the Board of Trustees of the Public Employees <br/>
<a id="pl.217.31"></a><var>217.31</var>Retirement Association, the Board of Trustees of the Teachers Retirement Association, or <br/>
<a id="pl.217.32"></a><var>217.32</var>the Board of Directors of the Minnesota State Retirement System.<br/>
<a id="pl.217.33"></a><var>217.33</var>    (e) "Person" includes an active, retired, deferred, or nonvested inactive participant in <br/>
<a id="pl.217.34"></a><var>217.34</var>a covered pension plan or a beneficiary of a participant, or an individual who has applied <br/>
<a id="pl.218.1"></a><var>218.1</var>to be a participant or who is or may be a survivor of a participant, or a state agency or <br/>
<a id="pl.218.2"></a><var>218.2</var>other governmental unit that employs active participants in a covered pension plan.<br/>
<br/>
<a id="bill.13.39.0"></a><a id="pl.218.3"></a><var>218.3</var>    Sec. 39. Minnesota Statutes 2008, section 473.511, subdivision 3, is amended to read:<br/>
<a id="pl.218.4"></a><var>218.4</var>    Subd. 3. <b>Existing sanitary districts, joint sewer boards.</b> Effective January 1, <br/>
<a id="pl.218.5"></a><var>218.5</var>1971, the corporate existence of the Minneapolis-St. Paul Sanitary District, the North <br/>
<a id="pl.218.6"></a><var>218.6</var>Suburban Sanitary Sewer District, and any joint board created by agreement among local <br/>
<a id="pl.218.7"></a><var>218.7</var>government units pursuant to under section 
         <statute_ref>471.59</statute_ref>, to provide interceptors and treatment <br/>
<a id="pl.218.8"></a><var>218.8</var>works for such local government units, shall terminate. All persons regularly employed by <br/>
<a id="pl.218.9"></a><var>218.9</var>such sanitary districts and joint boards on that date or on any earlier date on which the <br/>
<a id="pl.218.10"></a><var>218.10</var>former waste control commission pursuant to subdivisions 1 and 2 assumed ownership and <br/>
<a id="pl.218.11"></a><var>218.11</var>control of any interceptors or treatment works owned or operated by such sanitary districts <br/>
<a id="pl.218.12"></a><var>218.12</var>and joint boards, and who are employees of the commission on July 1, 1994, shall be are <br/>
<a id="pl.218.13"></a><var>218.13</var>employees of the council, and may at their option become members of the Minnesota <br/>
<a id="pl.218.14"></a><var>218.14</var>State Retirement System or may continue as members of a public retirement association <br/>
<a id="pl.218.15"></a><var>218.15</var>under chapter 422A or any other law, to which they belonged before such date, and shall <br/>
<a id="pl.218.16"></a><var>218.16</var>retain all pension rights which they may have under such latter laws, and all other rights to <br/>
<a id="pl.218.17"></a><var>218.17</var>which they are entitled by contract or law. Members of trades who are employed by the <br/>
<a id="pl.218.18"></a><var>218.18</var>former Metropolitan Waste Control Commission, who have trade union pension coverage <br/>
<a id="pl.218.19"></a><var>218.19</var>pursuant to under a collective bargaining agreement, and who elected exclusion from <br/>
<a id="pl.218.20"></a><var>218.20</var>coverage pursuant to under section 
         <statute_ref>473.512</statute_ref>, or who are first employed after July 1, 1977, <br/>
<a id="pl.218.21"></a><var>218.21</var>shall may not be covered by the Minnesota State Retirement System. The council shall <br/>
<a id="pl.218.22"></a><var>218.22</var>make the employer's contributions to pension funds of its employees. Such employees <br/>
<a id="pl.218.23"></a><var>218.23</var>shall perform such duties as may be prescribed by the council. All funds of such sanitary <br/>
<a id="pl.218.24"></a><var>218.24</var>districts and joint boards then on hand, and all subsequent collections of taxes, special <br/>
<a id="pl.218.25"></a><var>218.25</var>assessments or service charges levied or imposed by or for such sanitary districts or joint <br/>
<a id="pl.218.26"></a><var>218.26</var>boards shall must be transferred to the council. The local government units otherwise <br/>
<a id="pl.218.27"></a><var>218.27</var>entitled to such cash, taxes, assessments or service charges shall must be credited with <br/>
<a id="pl.218.28"></a><var>218.28</var>such amounts, and such credits shall must be offset against any amounts to be paid by <br/>
<a id="pl.218.29"></a><var>218.29</var>them to the council as provided in section 
         <statute_ref>473.517</statute_ref>. The former Metropolitan Waste <br/>
<a id="pl.218.30"></a><var>218.30</var>Control Commission, and on July 1, 1994, the council shall succeed to and become vested <br/>
<a id="pl.218.31"></a><var>218.31</var>by action of law with all right, title and interest in and to any property, real or personal, <br/>
<a id="pl.218.32"></a><var>218.32</var>owned or operated by such sanitary districts and joint boards. Prior to that date the proper <br/>
<a id="pl.218.33"></a><var>218.33</var>officers of such sanitary districts and joint boards, or the former Metropolitan Waste <br/>
<a id="pl.218.34"></a><var>218.34</var>Control Commission, shall execute and deliver to the council all deeds, conveyances, bills <br/>
<a id="pl.218.35"></a><var>218.35</var>of sale, and other documents or instruments required to vest in the council good and <br/>
<a id="pl.219.1"></a><var>219.1</var>marketable title to all such real or personal property; provided that vesting of the title shall <br/>
<a id="pl.219.2"></a><var>219.2</var>must occur by operation of law and failure to execute and deliver the documents shall does <br/>
<a id="pl.219.3"></a><var>219.3</var>not affect the vesting of title in the former Metropolitan Waste Control Commission or the <br/>
<a id="pl.219.4"></a><var>219.4</var>council on the dates indicated in this subdivision. The council shall become obligated to <br/>
<a id="pl.219.5"></a><var>219.5</var>pay or assume all bonded or other debt and contract obligations incurred by the former <br/>
<a id="pl.219.6"></a><var>219.6</var>Metropolitan Waste Control Commission, or by such sanitary districts and joint boards, or <br/>
<a id="pl.219.7"></a><var>219.7</var>incurred by local government units for the acquisition or betterment of any interceptors or <br/>
<a id="pl.219.8"></a><var>219.8</var>treatment works owned or operated by such sanitary districts or joint boards.  <br/>
<br/>
<a id="bill.13.40.0"></a><a id="pl.219.9"></a><var>219.9</var>    Sec. 40. Minnesota Statutes 2008, section 473.606, subdivision 5, is amended to read:<br/>
<a id="pl.219.10"></a><var>219.10</var>    Subd. 5. <b>Employees, others, affirmative action; prevailing wage.</b> The corporation <br/>
<a id="pl.219.11"></a><var>219.11</var>shall have the power to appoint engineers and other consultants, attorneys, and such <br/>
<a id="pl.219.12"></a><var>219.12</var>other officers, agents, and employees as it may see fit, who shall perform such duties and <br/>
<a id="pl.219.13"></a><var>219.13</var>receive such compensation as the corporation may determine, and be removable at the <br/>
<a id="pl.219.14"></a><var>219.14</var>pleasure of the corporation. The corporation shall must adopt an affirmative action plan, <br/>
<a id="pl.219.15"></a><var>219.15</var>which shall be submitted to the appropriate agency or office of the state for review and <br/>
<a id="pl.219.16"></a><var>219.16</var>approval. The plan shall must include a yearly progress report to the agency or office. <br/>
<a id="pl.219.17"></a><var>219.17</var>Officers and employees of the corporation who cannot qualify and participate in the <br/>
<a id="pl.219.18"></a><var>219.18</var>municipal employees retirement fund under chapter 422A, shall be separated from service <br/>
<a id="pl.219.19"></a><var>219.19</var>at the retirement age applicable to officers or employees of the state of Minnesota in the <br/>
<a id="pl.219.20"></a><var>219.20</var>classified service of the state civil service as provided in section 
<statute_ref>43A.34</statute_ref>, or as the same <br/>
<a id="pl.219.21"></a><var>219.21</var>may from time to time be amended, regardless of the provisions of the Veteran's Preference <br/>
<a id="pl.219.22"></a><var>219.22</var>Act. Whenever the corporation performs any work within the limits of a city of the first <br/>
<a id="pl.219.23"></a><var>219.23</var>class, or establishes a minimum wage for skilled or unskilled labor in the specifications or <br/>
<a id="pl.219.24"></a><var>219.24</var>any contract for work within one of the cities, the rate of pay to such skilled and unskilled <br/>
<a id="pl.219.25"></a><var>219.25</var>labor shall must be the prevailing rate of wage for such labor in that city.  <br/>
<br/>
<a id="bill.13.41.0"></a><a id="pl.219.26"></a><var>219.26</var>    Sec. 41. Minnesota Statutes 2008, section 475.52, subdivision 6, is amended to read:<br/>
<a id="pl.219.27"></a><var>219.27</var>    Subd. 6.  <b>Certain purposes.</b> Any municipality may issue bonds for paying <br/>
<a id="pl.219.28"></a><var>219.28</var>judgments against it; for refunding outstanding bonds; for funding floating indebtedness; <br/>
<a id="pl.219.29"></a><var>219.29</var>for funding actuarial liabilities to pay postemployment benefits to employees or officers <br/>
<a id="pl.219.30"></a><var>219.30</var>after their termination of service; or for funding all or part of the municipality's current <br/>
<a id="pl.219.31"></a><var>219.31</var>and future unfunded liability for a pension or retirement fund or plan referred to in <br/>
<a id="pl.219.32"></a><var>219.32</var>section 
         <statute_ref>356.20, subdivision 2</statute_ref>, as those liabilities are most recently computed pursuant <br/>
<a id="pl.219.33"></a><var>219.33</var>to under sections 
         <statute_ref>356.215</statute_ref> and 
         <statute_ref>356.216</statute_ref>. The board of trustees or directors of a pension <br/>
<a id="pl.219.34"></a><var>219.34</var>fund or relief association referred to in section 
         <statute_ref>69.77</statute_ref> or chapter 422A must consent and <br/>
<a id="pl.220.1"></a><var>220.1</var>must be a party to any contract made under this section with respect to the fund held by <br/>
<a id="pl.220.2"></a><var>220.2</var>it for the benefit of and in trust for its members. For purposes of this section, the term <br/>
<a id="pl.220.3"></a><var>220.3</var>"postemployment benefits" means benefits giving rise to a liability under Statement No. <br/>
<a id="pl.220.4"></a><var>220.4</var>45 of the Governmental Accounting Standards Board. <br/>
<br/>
<a id="bill.13.42.0"></a><a id="pl.220.5"></a><var>220.5</var>    Sec. 42. Minnesota Statutes 2009 Supplement, section 480.181, subdivision 2, is <br/>
<a id="pl.220.6"></a><var>220.6</var>amended to read:<br/>
<a id="pl.220.7"></a><var>220.7</var>    Subd. 2. <b>Election to retain insurance and benefits; retirement.</b> (a) Before a <br/>
<a id="pl.220.8"></a><var>220.8</var>person is transferred to state employment under this section, the person may elect to do <br/>
<a id="pl.220.9"></a><var>220.9</var>either or both of the following:<br/>
<a id="pl.220.10"></a><var>220.10</var>(1) keep life insurance; hospital, medical, and dental insurance; and vacation and <br/>
<a id="pl.220.11"></a><var>220.11</var>sick leave benefits and accumulated time provided by the county instead of receiving <br/>
<a id="pl.220.12"></a><var>220.12</var>benefits from the state under the judicial branch personnel rules; or<br/>
<a id="pl.220.13"></a><var>220.13</var>(2) remain a member of the general employees retirement plan of the Public <br/>
<a id="pl.220.14"></a><var>220.14</var>Employees Retirement Association or the Minneapolis employees retirement fund MERF <br/>
<a id="pl.220.15"></a><var>220.15</var>division of the Public Employees Retirement Association instead of joining the Minnesota <br/>
<a id="pl.220.16"></a><var>220.16</var>State Retirement System.<br/>
<a id="pl.220.17"></a><var>220.17</var>Employees who make an election under clause (1) remain on the county payroll, <br/>
<a id="pl.220.18"></a><var>220.18</var>but the state shall reimburse the county on a quarterly basis for the salary and cost of the <br/>
<a id="pl.220.19"></a><var>220.19</var>benefits provided by the county. The state shall make the employer contribution to the <br/>
<a id="pl.220.20"></a><var>220.20</var>general employees retirement plan of the Public Employees Retirement Association or the <br/>
<a id="pl.220.21"></a><var>220.21</var>employer contribution under section 422A.101 353.50, subdivision 1a 7, paragraphs (c) <br/>
<a id="pl.220.22"></a><var>220.22</var>and (d), to the Minneapolis Employees Retirement Fund MERF division of the Public <br/>
<a id="pl.220.23"></a><var>220.23</var>Employees Retirement Association on behalf of employees who make an election under <br/>
<a id="pl.220.24"></a><var>220.24</var>clause (2). <br/>
<a id="pl.220.25"></a><var>220.25</var>(b) An employee who makes an election under paragraph (a), clause (1), may revoke <br/>
<a id="pl.220.26"></a><var>220.26</var>the election, once, at any time, but if the employee revokes the election, the employee <br/>
<a id="pl.220.27"></a><var>220.27</var>cannot make another election. An employee who makes an election under paragraph (a), <br/>
<a id="pl.220.28"></a><var>220.28</var>clause (2), may revoke the election at any time within six months after the person becomes <br/>
<a id="pl.220.29"></a><var>220.29</var>a state employee. Once an employee revokes this election, the employee cannot make <br/>
<a id="pl.220.30"></a><var>220.30</var>another election.<br/>
<a id="pl.220.31"></a><var>220.31</var>(c) The Supreme Court, after consultation with the Judicial Council, the <br/>
<a id="pl.220.32"></a><var>220.32</var>commissioner of management and budget, and the executive directors of the Public <br/>
<a id="pl.220.33"></a><var>220.33</var>Employees Retirement Association and the Minnesota State Retirement Association, shall <br/>
<a id="pl.220.34"></a><var>220.34</var>adopt procedures for making elections under this section.<br/>
<a id="pl.221.1"></a><var>221.1</var>(d) The Supreme Court shall notify all affected employees of the options available <br/>
<a id="pl.221.2"></a><var>221.2</var>under this section. The executive directors of the Public Employees Retirement <br/>
<a id="pl.221.3"></a><var>221.3</var>Association and the Minnesota State Retirement System shall provide counseling to <br/>
<a id="pl.221.4"></a><var>221.4</var>affected employees on the effect of making an election to remain a member of the Public <br/>
<a id="pl.221.5"></a><var>221.5</var>Employees Retirement Association.<br/>
<br/>
<a id="bill.13.43.0"></a><a id="pl.221.6"></a><var>221.6</var>    Sec. 43. <b>EFFECTIVE DATE.</b><br/>
<a id="pl.221.7"></a><var>221.7</var>Sections 1 to 42 are effective June 30, 2010.<br/>
<br/>
<a id="bill.14.0.0"></a>

<a id="bill.14.1.0"></a><a id="pl.221.10"></a><var>221.10</var>    Section 1. Minnesota Statutes 2009 Supplement, section 69.772, subdivision 6, is <br/>
<a id="pl.221.11"></a><var>221.11</var>amended to read:<br/>
<a id="pl.221.12"></a><var>221.12</var>    Subd. 6. <b>Municipal ratification for plan amendments.</b> If the special fund of the <br/>
<a id="pl.221.13"></a><var>221.13</var>relief association does not have a surplus over full funding pursuant to under subdivision 3, <br/>
<a id="pl.221.14"></a><var>221.14</var>clause (2), subclause (e), or and if the municipality is required to provide financial support <br/>
<a id="pl.221.15"></a><var>221.15</var>to the special fund of the relief association pursuant to under this section, the adoption of <br/>
<a id="pl.221.16"></a><var>221.16</var>or any amendment to the articles of incorporation or bylaws of a relief association which <br/>
<a id="pl.221.17"></a><var>221.17</var>increases or otherwise affects the retirement coverage provided by or the service pensions <br/>
<a id="pl.221.18"></a><var>221.18</var>or retirement benefits payable from the special fund of any relief association to which this <br/>
<a id="pl.221.19"></a><var>221.19</var>section applies is not effective until it is ratified by the governing body of the municipality <br/>
<a id="pl.221.20"></a><var>221.20</var>in which the relief association is located and the officers of a relief association shall not <br/>
<a id="pl.221.21"></a><var>221.21</var>seek municipal ratification prior to preparing and certifying an estimate of the expected <br/>
<a id="pl.221.22"></a><var>221.22</var>increase in the accrued liability and annual accruing liability of the relief association <br/>
<a id="pl.221.23"></a><var>221.23</var>attributable to the amendment. If the special fund of the relief association has a surplus <br/>
<a id="pl.221.24"></a><var>221.24</var>over full funding pursuant to under subdivision 3, clause (2), subclause (e), and if the <br/>
<a id="pl.221.25"></a><var>221.25</var>municipality is not required to provide financial support to the special fund of the relief <br/>
<a id="pl.221.26"></a><var>221.26</var>association pursuant to under this section, the relief association may adopt or amend its <br/>
<a id="pl.221.27"></a><var>221.27</var>articles of incorporation or bylaws which increase or otherwise affect the retirement <br/>
<a id="pl.221.28"></a><var>221.28</var>coverage provided by or the service pensions or retirement benefits payable from the <br/>
<a id="pl.221.29"></a><var>221.29</var>special fund of the relief association which are effective without municipal ratification so <br/>
<a id="pl.221.30"></a><var>221.30</var>long as this does not cause the amount of the resulting increase in the accrued liability <br/>
<a id="pl.221.31"></a><var>221.31</var>of the special fund of the relief association to exceed 90 percent of the amount of the <br/>
<a id="pl.221.32"></a><var>221.32</var>surplus over full funding reported in the prior year and this does not result in the financial <br/>
<a id="pl.221.33"></a><var>221.33</var>requirements of the special fund of the relief association exceeding the expected amount <br/>
<a id="pl.221.34"></a><var>221.34</var>of the future fire state aid to be received by the relief association as determined by the <br/>
<a id="pl.222.1"></a><var>222.1</var>board of trustees following the preparation of an estimate of the expected increase in the <br/>
<a id="pl.222.2"></a><var>222.2</var>accrued liability and annual accruing liability of the relief association attributable to the <br/>
<a id="pl.222.3"></a><var>222.3</var>change. If a relief association adopts or amends its articles of incorporation or bylaws <br/>
<a id="pl.222.4"></a><var>222.4</var>without municipal ratification pursuant to under this subdivision, and, subsequent to <br/>
<a id="pl.222.5"></a><var>222.5</var>the amendment or adoption, the financial requirements of the special fund of the relief <br/>
<a id="pl.222.6"></a><var>222.6</var>association pursuant to under this section are such so as to require financial support from <br/>
<a id="pl.222.7"></a><var>222.7</var>the municipality, the provision which was implemented without municipal ratification is <br/>
<a id="pl.222.8"></a><var>222.8</var>no longer effective without municipal ratification and any service pensions or retirement <br/>
<a id="pl.222.9"></a><var>222.9</var>benefits payable after that date may be paid only in accordance with the articles of <br/>
<a id="pl.222.10"></a><var>222.10</var>incorporation or bylaws as amended or adopted with municipal ratification.<br/>
<a id="pl.222.11"></a><var>222.11</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.14.2.0"></a><a id="pl.222.12"></a><var>222.12</var>    Sec. 2. Minnesota Statutes 2009 Supplement, section 69.773, subdivision 6, is <br/>
<a id="pl.222.13"></a><var>222.13</var>amended to read:<br/>
<a id="pl.222.14"></a><var>222.14</var>    Subd. 6. <b>Municipal ratification for plan amendments.</b> If the special fund of the <br/>
<a id="pl.222.15"></a><var>222.15</var>relief association does not have a surplus over full funding pursuant to under subdivision <br/>
<a id="pl.222.16"></a><var>222.16</var>4, or and if the municipality is required to provide financial support to the special fund of <br/>
<a id="pl.222.17"></a><var>222.17</var>the relief association pursuant to under this section, the adoption of or any amendment to <br/>
<a id="pl.222.18"></a><var>222.18</var>the articles of incorporation or bylaws of a relief association which increases or otherwise <br/>
<a id="pl.222.19"></a><var>222.19</var>affects the retirement coverage provided by or the service pensions or retirement benefits <br/>
<a id="pl.222.20"></a><var>222.20</var>payable from the special fund of any relief association to which this section applies is not <br/>
<a id="pl.222.21"></a><var>222.21</var>effective until it is ratified by the governing body of the municipality in which the relief <br/>
<a id="pl.222.22"></a><var>222.22</var>association is located. If the special fund of the relief association has a surplus over full <br/>
<a id="pl.222.23"></a><var>222.23</var>funding pursuant to under subdivision 4, and if the municipality is not required to provide <br/>
<a id="pl.222.24"></a><var>222.24</var>financial support to the special fund of the relief association pursuant to under this section, <br/>
<a id="pl.222.25"></a><var>222.25</var>the relief association may adopt or amend its articles of incorporation or bylaws which <br/>
<a id="pl.222.26"></a><var>222.26</var>increase or otherwise affect the retirement coverage provided by or the service pensions <br/>
<a id="pl.222.27"></a><var>222.27</var>or retirement benefits payable from the special fund of the relief association which are <br/>
<a id="pl.222.28"></a><var>222.28</var>effective without municipal ratification so long as this does not cause the amount of the <br/>
<a id="pl.222.29"></a><var>222.29</var>resulting increase in the accrued liability of the special fund of the relief association to <br/>
<a id="pl.222.30"></a><var>222.30</var>exceed 90 percent of the amount of the surplus over full funding reported in the prior year <br/>
<a id="pl.222.31"></a><var>222.31</var>and this does not result in the financial requirements of the special fund of the relief <br/>
<a id="pl.222.32"></a><var>222.32</var>association exceeding the expected amount of the future fire state aid to be received by the <br/>
<a id="pl.222.33"></a><var>222.33</var>relief association as determined by the board of trustees following the preparation of an <br/>
<a id="pl.222.34"></a><var>222.34</var>updated actuarial valuation including the proposed change or an estimate of the expected <br/>
<a id="pl.222.35"></a><var>222.35</var>actuarial impact of the proposed change prepared by the actuary of the relief association. <br/>
<a id="pl.223.1"></a><var>223.1</var>If a relief association adopts or amends its articles of incorporation or bylaws without <br/>
<a id="pl.223.2"></a><var>223.2</var>municipal ratification pursuant to this subdivision, and, subsequent to the amendment or <br/>
<a id="pl.223.3"></a><var>223.3</var>adoption, the financial requirements of the special fund of the relief association pursuant <br/>
<a id="pl.223.4"></a><var>223.4</var>to under this section are such so as to require financial support from the municipality, the <br/>
<a id="pl.223.5"></a><var>223.5</var>provision which was implemented without municipal ratification is no longer effective <br/>
<a id="pl.223.6"></a><var>223.6</var>without municipal ratification and any service pensions or retirement benefits payable after <br/>
<a id="pl.223.7"></a><var>223.7</var>that date may be paid only in accordance with the articles of incorporation or bylaws as <br/>
<a id="pl.223.8"></a><var>223.8</var>amended or adopted with municipal ratification.<br/>
<a id="pl.223.9"></a><var>223.9</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.14.3.0"></a><a id="pl.223.10"></a><var>223.10</var>    Sec. 3. Minnesota Statutes 2008, section 356A.06, subdivision 8, is amended to read:<br/>
<a id="pl.223.11"></a><var>223.11</var>    Subd. 8. <b>Minimum liquidity requirements.</b> A covered pension plan described by <br/>
<a id="pl.223.12"></a><var>223.12</var>subdivision 6, paragraph (a) or 7, in order to pay benefits as they come due, shall invest <br/>
<a id="pl.223.13"></a><var>223.13</var>a portion of its assets in authorized short-term debt obligations that can be immediately <br/>
<a id="pl.223.14"></a><var>223.14</var>liquidated without accrual of a substantial determinable penalty or loss and that have an <br/>
<a id="pl.223.15"></a><var>223.15</var>average maturity of no more than 90 days. The chief administrative officer of the plan <br/>
<a id="pl.223.16"></a><var>223.16</var>shall determine the minimum liquidity requirement of the plan and shall retain appropriate <br/>
<a id="pl.223.17"></a><var>223.17</var>documentation of that determination for three years from the date of determination.<br/>
<a id="pl.223.18"></a><var>223.18</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.14.4.0"></a><a id="pl.223.19"></a><var>223.19</var>    Sec. 4. Minnesota Statutes 2009 Supplement, section 424A.01, subdivision 1, is <br/>
<a id="pl.223.20"></a><var>223.20</var>amended to read:<br/>
<a id="pl.223.21"></a><var>223.21</var>    Subdivision 1. <b>Minors.</b> (a) No volunteer firefighters' relief association associated <br/>
<a id="pl.223.22"></a><var>223.22</var>with a municipality or an independent nonprofit firefighting corporation may include as a <br/>
<a id="pl.223.23"></a><var>223.23</var>relief association member a minor serving as a firefighter, except for members of a youth, <br/>
<a id="pl.223.24"></a><var>223.24</var>civic, or educational organization or program who participate with uninterrupted adult <br/>
<a id="pl.223.25"></a><var>223.25</var>supervision, as allowed by federal law and by section 
<statute_ref>181A.04</statute_ref>. Such organizations or <br/>
<a id="pl.223.26"></a><var>223.26</var>programs include, but are not limited to, Boy Scout Explorer programs or firefighting <br/>
<a id="pl.223.27"></a><var>223.27</var>degree programs.<br/>
<a id="pl.223.28"></a><var>223.28</var>(b) No volunteer firefighters' relief association associated with a municipality or an <br/>
<a id="pl.223.29"></a><var>223.29</var>independent nonprofit firefighting corporation may include as a relief association member <br/>
<a id="pl.223.30"></a><var>223.30</var>a minor serving as a volunteer firefighter.<br/>
<a id="pl.223.31"></a><var>223.31</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.14.5.0"></a><a id="pl.224.1"></a><var>224.1</var>    Sec. 5. Minnesota Statutes 2009 Supplement, section 424A.01, subdivision 6, is <br/>
<a id="pl.224.2"></a><var>224.2</var>amended to read:<br/>
<a id="pl.224.3"></a><var>224.3</var>    Subd. 6. <b>Return to active firefighting after break in service.</b> (a) The requirements <br/>
<a id="pl.224.4"></a><var>224.4</var>of this section apply to all breaks in service, except breaks in service mandated by federal <br/>
<a id="pl.224.5"></a><var>224.5</var>or state law.<br/>
<a id="pl.224.6"></a><var>224.6</var>(b)(1) If a former active firefighter who has ceased to perform or supervise fire <br/>
<a id="pl.224.7"></a><var>224.7</var>suppression and fire prevention duties for at least 60 days resumes performing active <br/>
<a id="pl.224.8"></a><var>224.8</var>firefighting with the fire department associated with the relief association, if the bylaws of <br/>
<a id="pl.224.9"></a><var>224.9</var>the relief association so permit, the person firefighter may again become an active member <br/>
<a id="pl.224.10"></a><var>224.10</var>of the relief association. A firefighter who returns to active service and membership is <br/>
<a id="pl.224.11"></a><var>224.11</var>subject to the service pension calculation requirements under this section.<br/>
<a id="pl.224.12"></a><var>224.12</var>(2) A firefighter who has been granted an approved leave of absence not exceeding <br/>
<a id="pl.224.13"></a><var>224.13</var>one year by the fire department or by the relief association is exempt from the minimum <br/>
<a id="pl.224.14"></a><var>224.14</var>period of resumption service requirement of this section.<br/>
<a id="pl.224.15"></a><var>224.15</var>(3) A person who has a break in service not exceeding one year but has not been <br/>
<a id="pl.224.16"></a><var>224.16</var>granted an approved leave of absence and who has not received a service pension or <br/>
<a id="pl.224.17"></a><var>224.17</var>disability benefit may be made exempt from the minimum period of resumption service <br/>
<a id="pl.224.18"></a><var>224.18</var>requirement of this section by the relief association bylaws.<br/>
<a id="pl.224.19"></a><var>224.19</var>(4) If the bylaws so provide, a firefighter who returns to active relief association <br/>
<a id="pl.224.20"></a><var>224.20</var>membership under this paragraph may continue to collect a monthly service pension, <br/>
<a id="pl.224.21"></a><var>224.21</var>notwithstanding the service pension eligibility requirements under chapter 424A.<br/>
<a id="pl.224.22"></a><var>224.22</var>(b) (c) If a former firefighter who has received a service pension or disability benefit <br/>
<a id="pl.224.23"></a><var>224.23</var>returns to active relief association membership under paragraph (a) (b), the firefighter may <br/>
<a id="pl.224.24"></a><var>224.24</var>qualify for the receipt of a service pension from the relief association for the resumption <br/>
<a id="pl.224.25"></a><var>224.25</var>service period if the firefighter meets a minimum period of resumption service specified in <br/>
<a id="pl.224.26"></a><var>224.26</var>the relief association bylaws the service requirements of section 424A.016, subdivision 3, <br/>
<a id="pl.224.27"></a><var>224.27</var>or 424A.02, subdivision 2.<br/>
<a id="pl.224.28"></a><var>224.28</var>(d) If a former firefighter who has not received a service pension or disability benefit <br/>
<a id="pl.224.29"></a><var>224.29</var>returns to active relief association membership under paragraph (b), the firefighter may <br/>
<a id="pl.224.30"></a><var>224.30</var>qualify for the receipt of a service pension from the relief association for the resumption <br/>
<a id="pl.224.31"></a><var>224.31</var>service period if the firefighter meets the minimum period of resumption service specified <br/>
<a id="pl.224.32"></a><var>224.32</var>in the relief association bylaws and the service requirements of section 424A.016, <br/>
<a id="pl.224.33"></a><var>224.33</var>subdivision 3, or 424A.02, subdivision 2.<br/>
<a id="pl.224.34"></a><var>224.34</var>(c) (e) A firefighter who returns to active lump-sum relief association membership <br/>
<a id="pl.224.35"></a><var>224.35</var>and who qualifies for a service pension under paragraph (b) (c) or (d) must have, upon <br/>
<a id="pl.224.36"></a><var>224.36</var>a subsequent cessation of duties, any service pension for the resumption service period <br/>
<a id="pl.225.1"></a><var>225.1</var>calculated as a separate benefit. If a lump-sum service pension had been paid to the <br/>
<a id="pl.225.2"></a><var>225.2</var>firefighter upon the firefighter's previous cessation of duties, a second lump-sum service <br/>
<a id="pl.225.3"></a><var>225.3</var>pension for the resumption service period must be calculated to apply the service pension <br/>
<a id="pl.225.4"></a><var>225.4</var>amount in effect on the date of the firefighter's termination of the resumption service for all <br/>
<a id="pl.225.5"></a><var>225.5</var>years of the resumption service. No firefighter may be paid a service pension twice for the <br/>
<a id="pl.225.6"></a><var>225.6</var>same period of service. If a lump-sum service pension had not been paid to the firefighter <br/>
<a id="pl.225.7"></a><var>225.7</var>upon the firefighter's previous cessation of duties and the firefighter meets the minimum <br/>
<a id="pl.225.8"></a><var>225.8</var>service requirement of section 424A.016, subdivision 3, or 
<statute_ref>424A.02, subdivision 2</statute_ref>, a <br/>
<a id="pl.225.9"></a><var>225.9</var>service pension must be calculated to apply the service pension amount in effect on the <br/>
<a id="pl.225.10"></a><var>225.10</var>date of the firefighter's termination of the resumption service for all years of service credit.<br/>
<a id="pl.225.11"></a><var>225.11</var>(d) (f) A firefighter who had not been paid a lump-sum service pension returns <br/>
<a id="pl.225.12"></a><var>225.12</var>to active relief association membership under paragraph (a) (b), who does not qualify <br/>
<a id="pl.225.13"></a><var>225.13</var>for a service pension under paragraph (b) (d), but who does meet the minimum service <br/>
<a id="pl.225.14"></a><var>225.14</var>requirement of section 424A.016, subdivision 3, or 
<statute_ref>424A.02, subdivision 2</statute_ref>, based on the <br/>
<a id="pl.225.15"></a><var>225.15</var>firefighter's previous years of active service, must have, upon a subsequent cessation of <br/>
<a id="pl.225.16"></a><var>225.16</var>duties, a service pension calculated for the previous years of service based on the service <br/>
<a id="pl.225.17"></a><var>225.17</var>pension amount in effect on the date of the firefighter's termination of the resumption <br/>
<a id="pl.225.18"></a><var>225.18</var>service, or, if the bylaws so provide, based on the service pension amount in effect on the <br/>
<a id="pl.225.19"></a><var>225.19</var>date of the firefighter's previous cessation of duties.<br/>
<a id="pl.225.20"></a><var>225.20</var>(e) (g) If a firefighter receiving a monthly benefit service pension returns to active <br/>
<a id="pl.225.21"></a><var>225.21</var>monthly benefit relief association membership under paragraph (a) (b), and if the relief <br/>
<a id="pl.225.22"></a><var>225.22</var>association bylaws do not allow for the firefighter to continue collecting a monthly service <br/>
<a id="pl.225.23"></a><var>225.23</var>pension, any monthly benefit service pension payable to the firefighter is suspended as <br/>
<a id="pl.225.24"></a><var>225.24</var>of the first day of the month next following the date on which the firefighter returns to <br/>
<a id="pl.225.25"></a><var>225.25</var>active membership. If the firefighter was receiving a monthly benefit service pension, <br/>
<a id="pl.225.26"></a><var>225.26</var>and qualifies for a service pension under paragraph (b) (c), the firefighter is entitled to <br/>
<a id="pl.225.27"></a><var>225.27</var>an additional monthly benefit service pension upon a subsequent cessation of duties <br/>
<a id="pl.225.28"></a><var>225.28</var>calculated based on the resumption service credit and the service pension accrual amount <br/>
<a id="pl.225.29"></a><var>225.29</var>in effect on the date of the termination of the resumption service. The A suspended initial <br/>
<a id="pl.225.30"></a><var>225.30</var>service pension resumes as of the first of the month next following the termination of the <br/>
<a id="pl.225.31"></a><var>225.31</var>resumption service. If the firefighter was not receiving a monthly benefit service pension <br/>
<a id="pl.225.32"></a><var>225.32</var>and meets the minimum service requirement of section 
         <statute_ref>424A.02, subdivision 2</statute_ref>, a service <br/>
<a id="pl.225.33"></a><var>225.33</var>pension must be calculated to apply the service pension amount in effect on the date of the <br/>
<a id="pl.225.34"></a><var>225.34</var>firefighter's termination of the resumption service for all years of service credit.<br/>
<a id="pl.225.35"></a><var>225.35</var>(f) (h) A firefighter who was not receiving a monthly benefit service pension returns <br/>
<a id="pl.225.36"></a><var>225.36</var>to active relief association membership under paragraph (a) (b), who does not qualify <br/>
<a id="pl.226.1"></a><var>226.1</var>for a service pension under paragraph (b) (d), but who does meet the minimum service <br/>
<a id="pl.226.2"></a><var>226.2</var>requirement of section 
         <statute_ref>424A.02, subdivision 2</statute_ref>, based on the firefighter's previous years <br/>
<a id="pl.226.3"></a><var>226.3</var>of active service, must have, upon a subsequent cessation of duties, a service pension <br/>
<a id="pl.226.4"></a><var>226.4</var>calculated for the previous years of service based on the service pension amount in effect <br/>
<a id="pl.226.5"></a><var>226.5</var>on the date of the firefighter's termination of the resumption service, or, if the bylaws so <br/>
<a id="pl.226.6"></a><var>226.6</var>provide, based on the service pension amount in effect on the date of the firefighter's <br/>
<a id="pl.226.7"></a><var>226.7</var>previous cessation of duties.<br/>
<a id="pl.226.8"></a><var>226.8</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.14.6.0"></a><a id="pl.226.9"></a><var>226.9</var>    Sec. 6. Minnesota Statutes 2009 Supplement, section 424A.015, is amended by adding <br/>
<a id="pl.226.10"></a><var>226.10</var>a subdivision to read:<br/>
<a id="pl.226.11"></a><var>226.11</var>    Subd. 5. <b>Minnesota deferred compensation plan transfers.</b> A relief association <br/>
<a id="pl.226.12"></a><var>226.12</var>may directly transfer on an institution-to-institution basis the eligible member's <br/>
<a id="pl.226.13"></a><var>226.13</var>lump-sum pension amount to the requesting member's account in the Minnesota deferred <br/>
<a id="pl.226.14"></a><var>226.14</var>compensation plan, if:<br/>
<a id="pl.226.15"></a><var>226.15</var>(1) the governing articles of incorporation or bylaws so provide;<br/>
<a id="pl.226.16"></a><var>226.16</var>(2) the volunteer firefighter participates in the Minnesota deferred compensation <br/>
<a id="pl.226.17"></a><var>226.17</var>plan at the time of retirement; and<br/>
<a id="pl.226.18"></a><var>226.18</var>(3) the applicable retiring firefighter requests in writing that the relief association <br/>
<a id="pl.226.19"></a><var>226.19</var>do so.<br/>
<a id="pl.226.20"></a><var>226.20</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.14.7.0"></a><a id="pl.226.21"></a><var>226.21</var>    Sec. 7. Minnesota Statutes 2009 Supplement, section 424A.016, subdivision 4, is <br/>
<a id="pl.226.22"></a><var>226.22</var>amended to read:<br/>
<a id="pl.226.23"></a><var>226.23</var>    Subd. 4. <b>Individual accounts.</b> (a) An individual account must be established for <br/>
<a id="pl.226.24"></a><var>226.24</var>each firefighter who is a member of the relief association.<br/>
<a id="pl.226.25"></a><var>226.25</var>(b) To each individual active member account must be credited an equal share of:<br/>
<a id="pl.226.26"></a><var>226.26</var>(1) any amounts of fire state aid received by the relief association;<br/>
<a id="pl.226.27"></a><var>226.27</var>(2) any amounts of municipal contributions to the relief association raised from <br/>
<a id="pl.226.28"></a><var>226.28</var>levies on real estate or from other available municipal revenue sources exclusive of fire <br/>
<a id="pl.226.29"></a><var>226.29</var>state aid; and<br/>
<a id="pl.226.30"></a><var>226.30</var>(3) any amounts equal to the share of the assets of the special fund to the credit of:<br/>
<a id="pl.226.31"></a><var>226.31</var>(i) any former member who terminated active service with the fire department to <br/>
<a id="pl.226.32"></a><var>226.32</var>which the relief association is associated before meeting the minimum service requirement <br/>
<a id="pl.227.1"></a><var>227.1</var>provided for in subdivision 2, paragraph (b), and has not returned to active service with <br/>
<a id="pl.227.2"></a><var>227.2</var>the fire department for a period no shorter than five years; or<br/>
<a id="pl.227.3"></a><var>227.3</var>(ii) any retired member who retired before obtaining a full nonforfeitable interest in <br/>
<a id="pl.227.4"></a><var>227.4</var>the amounts credited to the individual member account under subdivision 2, paragraph <br/>
<a id="pl.227.5"></a><var>227.5</var>(b), and any applicable provision of the bylaws of the relief association. In addition, any <br/>
<a id="pl.227.6"></a><var>227.6</var>investment return on the assets of the special fund must be credited in proportion to the <br/>
<a id="pl.227.7"></a><var>227.7</var>share of the assets of the special fund to the credit of each individual active member <br/>
<a id="pl.227.8"></a><var>227.8</var>account. Administrative expenses of the relief association payable from the special <br/>
<a id="pl.227.9"></a><var>227.9</var>fund may be deducted from individual accounts in a manner specified in the bylaws of <br/>
<a id="pl.227.10"></a><var>227.10</var>the relief association. <br/>
<a id="pl.227.11"></a><var>227.11</var>(c) If the bylaws so permit and as the bylaws define, the relief association may credit <br/>
<a id="pl.227.12"></a><var>227.12</var>any investment return on the assets of the special fund to the accounts of inactive members.<br/>
<a id="pl.227.13"></a><var>227.13</var>(d) Amounts to be credited to individual accounts must be allocated uniformly for <br/>
<a id="pl.227.14"></a><var>227.14</var>all years of active service and allocations must be made for all years of service, except for <br/>
<a id="pl.227.15"></a><var>227.15</var>caps on service credit if so provided in the bylaws of the relief association. The allocation <br/>
<a id="pl.227.16"></a><var>227.16</var>method may utilize monthly proration for fractional years of service, as the bylaws or <br/>
<a id="pl.227.17"></a><var>227.17</var>articles of incorporation of the relief association so provide. The bylaws or articles of <br/>
<a id="pl.227.18"></a><var>227.18</var>incorporation may define a "month," but the definition must require a calendar month to <br/>
<a id="pl.227.19"></a><var>227.19</var>have at least 16 days of active service. If the bylaws or articles of incorporation do not <br/>
<a id="pl.227.20"></a><var>227.20</var>define a "month," a "month" is a completed calendar month of active service measured <br/>
<a id="pl.227.21"></a><var>227.21</var>from the member's date of entry to the same date in the subsequent month. <br/>
<a id="pl.227.22"></a><var>227.22</var>(d) (e) At the time of retirement under subdivision 2 and any applicable provision <br/>
<a id="pl.227.23"></a><var>227.23</var>of the bylaws of the relief association, a retiring member is entitled to that portion of the <br/>
<a id="pl.227.24"></a><var>227.24</var>assets of the special fund to the credit of the member in the individual member account <br/>
<a id="pl.227.25"></a><var>227.25</var>which is nonforfeitable under subdivision 3 and any applicable provision of the bylaws of <br/>
<a id="pl.227.26"></a><var>227.26</var>the relief association based on the number of years of service to the credit of the retiring <br/>
<a id="pl.227.27"></a><var>227.27</var>member.<br/>
<a id="pl.227.28"></a><var>227.28</var>(e) (f) Annually, the secretary of the relief association shall certify the individual <br/>
<a id="pl.227.29"></a><var>227.29</var>account allocations to the state auditor at the same time that the annual financial statement <br/>
<a id="pl.227.30"></a><var>227.30</var>or financial report and audit of the relief association, whichever applies, is due under <br/>
<a id="pl.227.31"></a><var>227.31</var>section 
         <statute_ref>69.051</statute_ref>.<br/>
<a id="pl.227.32"></a><var>227.32</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.14.8.0"></a><a id="pl.227.33"></a><var>227.33</var>    Sec. 8. Minnesota Statutes 2009 Supplement, section 424A.016, subdivision 7, is <br/>
<a id="pl.227.34"></a><var>227.34</var>amended to read:<br/>
<a id="pl.228.1"></a><var>228.1</var>    Subd. 7. <b>Limitation on ancillary benefits.</b> (a) A defined contribution relief <br/>
<a id="pl.228.2"></a><var>228.2</var>association may only pay an ancillary benefit which would constitute an authorized <br/>
<a id="pl.228.3"></a><var>228.3</var>disbursement as specified in section 
         <statute_ref>424A.05</statute_ref>. The ancillary benefit for active members <br/>
<a id="pl.228.4"></a><var>228.4</var>must equal the vested or and nonvested amount of the individual account of the member.<br/>
<a id="pl.228.5"></a><var>228.5</var>(b) For deferred members, the ancillary benefit must equal the vested amount of <br/>
<a id="pl.228.6"></a><var>228.6</var>the individual account of the member. For the recipient of installment payments of a <br/>
<a id="pl.228.7"></a><var>228.7</var>service pension, the ancillary benefit must equal the remaining balance in the individual <br/>
<a id="pl.228.8"></a><var>228.8</var>account of the recipient.<br/>
<a id="pl.228.9"></a><var>228.9</var>(c)(1) If a survivor or death benefit is payable under the articles of incorporation or <br/>
<a id="pl.228.10"></a><var>228.10</var>bylaws, the benefit must be paid:<br/>
<a id="pl.228.11"></a><var>228.11</var>(i) as a survivor benefit to the surviving spouse of the deceased firefighter;<br/>
<a id="pl.228.12"></a><var>228.12</var>(ii) as a survivor benefit to the surviving children of the deceased firefighter if no <br/>
<a id="pl.228.13"></a><var>228.13</var>surviving spouse;<br/>
<a id="pl.228.14"></a><var>228.14</var>(iii) as a survivor benefit to a designated beneficiary of the deceased firefighter if no <br/>
<a id="pl.228.15"></a><var>228.15</var>surviving spouse or surviving children; or<br/>
<a id="pl.228.16"></a><var>228.16</var>(iv) as a death benefit to the estate of the deceased active or deferred firefighter if no <br/>
<a id="pl.228.17"></a><var>228.17</var>surviving spouse, no surviving children, and no beneficiary designated.<br/>
<a id="pl.228.18"></a><var>228.18</var>(2) If there are no surviving children, the surviving spouse may waive, in writing, <br/>
<a id="pl.228.19"></a><var>228.19</var>wholly or partially, the spouse's entitlement to a survivor benefit.<br/>
<a id="pl.228.20"></a><var>228.20</var>(d) For purposes of this section, for a defined contribution volunteer fire relief <br/>
<a id="pl.228.21"></a><var>228.21</var>association, a trust created under chapter 501B may be a designated beneficiary. If a trust <br/>
<a id="pl.228.22"></a><var>228.22</var>payable to the surviving children organized under chapter 501B has been established as <br/>
<a id="pl.228.23"></a><var>228.23</var>authorized by this section and there is no surviving spouse, the survivor benefit may be <br/>
<a id="pl.228.24"></a><var>228.24</var>paid to the trust, notwithstanding the requirements of this section.<br/>
<a id="pl.228.25"></a><var>228.25</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.14.9.0"></a><a id="pl.228.26"></a><var>228.26</var>    Sec. 9. Minnesota Statutes 2009 Supplement, section 424A.02, subdivision 9, is <br/>
<a id="pl.228.27"></a><var>228.27</var>amended to read:<br/>
<a id="pl.228.28"></a><var>228.28</var>    Subd. 9. <b>Limitation on ancillary benefits.</b> A defined benefit relief association, <br/>
<a id="pl.228.29"></a><var>228.29</var>including any volunteer firefighters relief association governed by section 
         <statute_ref>69.77</statute_ref> or any <br/>
<a id="pl.228.30"></a><var>228.30</var>volunteer firefighters division of a relief association governed by chapter 424, may only <br/>
<a id="pl.228.31"></a><var>228.31</var>pay ancillary benefits which would constitute an authorized disbursement as specified in <br/>
<a id="pl.228.32"></a><var>228.32</var>section 
         <statute_ref>424A.05</statute_ref> subject to the following requirements or limitations:<br/>
<a id="pl.228.33"></a><var>228.33</var>    (1) with respect to a defined benefit relief association in which governing bylaws <br/>
<a id="pl.228.34"></a><var>228.34</var>provide for a lump-sum service pension to a retiring member, no ancillary benefit may <br/>
<a id="pl.228.35"></a><var>228.35</var>be paid to any former member or paid to any person on behalf of any former member <br/>
<a id="pl.229.1"></a><var>229.1</var>after the former member (i) terminates active service with the fire department and active <br/>
<a id="pl.229.2"></a><var>229.2</var>membership in the relief association; and (ii) commences receipt of a service pension as <br/>
<a id="pl.229.3"></a><var>229.3</var>authorized under this section; and<br/>
<a id="pl.229.4"></a><var>229.4</var>    (2) with respect to any defined benefit relief association, no ancillary benefit paid or <br/>
<a id="pl.229.5"></a><var>229.5</var>payable to any member, to any former member, or to any person on behalf of any member <br/>
<a id="pl.229.6"></a><var>229.6</var>or former member, may exceed in amount the total earned service pension of the member <br/>
<a id="pl.229.7"></a><var>229.7</var>or former member. The total earned service pension must be calculated by multiplying <br/>
<a id="pl.229.8"></a><var>229.8</var>the service pension amount specified in the bylaws of the relief association at the time of <br/>
<a id="pl.229.9"></a><var>229.9</var>death or disability, whichever applies, by the years of service credited to the member or <br/>
<a id="pl.229.10"></a><var>229.10</var>former member. The years of service must be determined as of (i) the date the member or <br/>
<a id="pl.229.11"></a><var>229.11</var>former member became entitled to the ancillary benefit; or (ii) the date the member or <br/>
<a id="pl.229.12"></a><var>229.12</var>former member died entitling a survivor or the estate of the member or former member to <br/>
<a id="pl.229.13"></a><var>229.13</var>an ancillary benefit. The ancillary benefit must be calculated without regard to whether the <br/>
<a id="pl.229.14"></a><var>229.14</var>member had attained the minimum amount of service and membership credit specified in <br/>
<a id="pl.229.15"></a><var>229.15</var>the governing bylaws. For active members, the amount of a permanent disability benefit <br/>
<a id="pl.229.16"></a><var>229.16</var>or a survivor benefit must be equal to the member's total earned service pension except <br/>
<a id="pl.229.17"></a><var>229.17</var>that the bylaws of a defined benefit relief association may provide for the payment of a <br/>
<a id="pl.229.18"></a><var>229.18</var>survivor benefit in an amount not to exceed five times the yearly service pension amount <br/>
<a id="pl.229.19"></a><var>229.19</var>specified in the bylaws on behalf of any member who dies before having performed five <br/>
<a id="pl.229.20"></a><var>229.20</var>years of active service in the fire department with which the relief association is affiliated.<br/>
<a id="pl.229.21"></a><var>229.21</var>(3)(i) If a lump sum survivor or death benefit is payable under the articles of <br/>
<a id="pl.229.22"></a><var>229.22</var>incorporation or bylaws, the benefit must be paid:<br/>
<a id="pl.229.23"></a><var>229.23</var>(A) as a survivor benefit to the surviving spouse of the deceased firefighter;<br/>
<a id="pl.229.24"></a><var>229.24</var>(B) as a survivor benefit to the surviving children of the deceased firefighter if <br/>
<a id="pl.229.25"></a><var>229.25</var>no surviving spouse;<br/>
<a id="pl.229.26"></a><var>229.26</var>(C) as a survivor benefit to a designated beneficiary of the deceased firefighter if no <br/>
<a id="pl.229.27"></a><var>229.27</var>surviving spouse or surviving children; or<br/>
<a id="pl.229.28"></a><var>229.28</var>(D) as a death benefit to the estate of the deceased active or deferred firefighter if no <br/>
<a id="pl.229.29"></a><var>229.29</var>surviving children and no beneficiary designated.<br/>
<a id="pl.229.30"></a><var>229.30</var>(ii) If there are no surviving children, the surviving spouse may waive, in writing, <br/>
<a id="pl.229.31"></a><var>229.31</var>wholly or partially, the spouse's entitlement to a survivor benefit.<br/>
<a id="pl.229.32"></a><var>229.32</var>(4)(i) If a monthly benefit survivor or death benefit is payable under the articles of <br/>
<a id="pl.229.33"></a><var>229.33</var>incorporation or bylaws, the benefit must be paid:<br/>
<a id="pl.229.34"></a><var>229.34</var>(A) as a survivor benefit to the surviving spouse of the deceased firefighter;<br/>
<a id="pl.229.35"></a><var>229.35</var>(B) as a survivor benefit to the surviving children of the deceased firefighter if <br/>
<a id="pl.229.36"></a><var>229.36</var>no surviving spouse;<br/>
<a id="pl.230.1"></a><var>230.1</var>(C) as a survivor benefit to a designated beneficiary of the deceased firefighter if no <br/>
<a id="pl.230.2"></a><var>230.2</var>surviving spouse or surviving children; or<br/>
<a id="pl.230.3"></a><var>230.3</var>(D) as a death benefit to the estate of the deceased active or deferred firefighter if no <br/>
<a id="pl.230.4"></a><var>230.4</var>surviving spouse, no surviving children, and no beneficiary designated.<br/>
<a id="pl.230.5"></a><var>230.5</var>(ii) If there are no surviving children, the surviving spouse may waive, in writing, <br/>
<a id="pl.230.6"></a><var>230.6</var>wholly or partially, the spouse's entitlement to a survivor benefit.<br/>
<a id="pl.230.7"></a><var>230.7</var>(iii) For purposes of this clause, if the relief association bylaws authorize a monthly <br/>
<a id="pl.230.8"></a><var>230.8</var>survivor benefit payable to a designated beneficiary, the relief association bylaws may <br/>
<a id="pl.230.9"></a><var>230.9</var>limit the total survivor benefit amount payable.<br/>
<a id="pl.230.10"></a><var>230.10</var>(5) For purposes of this section, for a monthly benefit volunteer fire relief association <br/>
<a id="pl.230.11"></a><var>230.11</var>or for a combination lump-sum and monthly benefit volunteer fire relief association where <br/>
<a id="pl.230.12"></a><var>230.12</var>a monthly benefit service pension has been elected by or a monthly benefit is payable with <br/>
<a id="pl.230.13"></a><var>230.13</var>respect to a firefighter, a designated beneficiary must be a natural person. For purposes <br/>
<a id="pl.230.14"></a><var>230.14</var>of this section, for a lump-sum volunteer fire relief association or for a combination <br/>
<a id="pl.230.15"></a><var>230.15</var>lump-sum and monthly benefit volunteer fire relief association where a lump-sum service <br/>
<a id="pl.230.16"></a><var>230.16</var>pension has been elected by or a lump-sum benefit is payable with respect to a firefighter, <br/>
<a id="pl.230.17"></a><var>230.17</var>a trust created under chapter 501B may be a designated beneficiary. If a trust is payable to <br/>
<a id="pl.230.18"></a><var>230.18</var>the surviving children organized under chapter 501B as authorized by this section and <br/>
<a id="pl.230.19"></a><var>230.19</var>there is no surviving spouse, the survivor benefit may be paid to the trust, notwithstanding <br/>
<a id="pl.230.20"></a><var>230.20</var>a requirement of this section to the contrary.<br/>
<a id="pl.230.21"></a><var>230.21</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.14.10.0"></a><a id="pl.230.22"></a><var>230.22</var>    Sec. 10. Minnesota Statutes 2009 Supplement, section 424A.02, subdivision 10, <br/>
<a id="pl.230.23"></a><var>230.23</var>is amended to read:<br/>
<a id="pl.230.24"></a><var>230.24</var>    Subd. 10. <b>Local approval of bylaw amendments; filing requirements.</b> (a) Each <br/>
<a id="pl.230.25"></a><var>230.25</var>defined benefit relief association to which this section applies must file a revised copy <br/>
<a id="pl.230.26"></a><var>230.26</var>of its governing bylaws with the state auditor upon the adoption of any amendment to <br/>
<a id="pl.230.27"></a><var>230.27</var>its governing bylaws by the relief association or upon the approval of any amendment <br/>
<a id="pl.230.28"></a><var>230.28</var>to its governing bylaws granted by the governing body of each municipality served by <br/>
<a id="pl.230.29"></a><var>230.29</var>the fire department to which the relief association is directly associated. Failure of the <br/>
<a id="pl.230.30"></a><var>230.30</var>relief association to file a copy of the bylaws or any bylaw amendments with the state <br/>
<a id="pl.230.31"></a><var>230.31</var>auditor disqualifies the municipality from the distribution of any future fire state aid until <br/>
<a id="pl.230.32"></a><var>230.32</var>this filing requirement has been completed.<br/>
<a id="pl.230.33"></a><var>230.33</var>(b) If the special fund of the relief association does not have a surplus over full <br/>
<a id="pl.230.34"></a><var>230.34</var>funding under section 
         <statute_ref>69.772, subdivision 3</statute_ref>, clause (2), subclause (e), or 
         <statute_ref>69.773, <br/>
<a id="pl.230.35"></a><var>230.35</var>subdivision 4
         </statute_ref>, and if the municipality is required to provide financial support to the special <br/>
<a id="pl.231.1"></a><var>231.1</var>fund of the relief association under section 
         <statute_ref>69.772</statute_ref> or 
         <statute_ref>69.773</statute_ref>, no bylaw amendment which <br/>
<a id="pl.231.2"></a><var>231.2</var>would affect the amount of, the manner of payment of, or the conditions for qualification <br/>
<a id="pl.231.3"></a><var>231.3</var>for service pensions or ancillary benefits or disbursements other than administrative <br/>
<a id="pl.231.4"></a><var>231.4</var>expenses authorized under section 
         <statute_ref>69.80</statute_ref> payable from the special fund of the relief <br/>
<a id="pl.231.5"></a><var>231.5</var>association is effective until it has been ratified by the governing body or bodies of the <br/>
<a id="pl.231.6"></a><var>231.6</var>appropriate municipalities as required under section 69.772, subdivision 6, or 69.773, <br/>
<a id="pl.231.7"></a><var>231.7</var>subdivision 6. If the special fund of the relief association has a surplus over full funding <br/>
<a id="pl.231.8"></a><var>231.8</var>under section 69.772, subdivision 3, or 69.773, subdivision 4, and if the municipality is <br/>
<a id="pl.231.9"></a><var>231.9</var>not required to provide financial support to the special fund under this section, the relief <br/>
<a id="pl.231.10"></a><var>231.10</var>association may adopt or amend without municipal ratification its articles of incorporation <br/>
<a id="pl.231.11"></a><var>231.11</var>or bylaws which increase or otherwise affect the service pensions or ancillary benefits <br/>
<a id="pl.231.12"></a><var>231.12</var>payable from the special fund so long as the changes do not cause the amount of the <br/>
<a id="pl.231.13"></a><var>231.13</var>resulting increase in the accrued liability of the special fund to exceed 90 percent of the <br/>
<a id="pl.231.14"></a><var>231.14</var>amount of the surplus over full funding reported in the prior year and the changes do not <br/>
<a id="pl.231.15"></a><var>231.15</var>result in the financial requirements of the special fund exceeding the expected amount <br/>
<a id="pl.231.16"></a><var>231.16</var>of the subsequent calendar year's fire state aid to be received by the relief association if <br/>
<a id="pl.231.17"></a><var>231.17</var>authorized under section 69.772, subdivision 6, or 69.773, subdivision 6.<br/>
<a id="pl.231.18"></a><var>231.18</var>(c) If the relief association pays only a lump-sum pension, the financial requirements <br/>
<a id="pl.231.19"></a><var>231.19</var>are to be determined by the board of trustees following the preparation of an estimate <br/>
<a id="pl.231.20"></a><var>231.20</var>of the expected increase in the accrued liability and annual accruing liability of the <br/>
<a id="pl.231.21"></a><var>231.21</var>relief association attributable to the change. If the relief association pays a monthly <br/>
<a id="pl.231.22"></a><var>231.22</var>benefit service pension, the financial requirements are to be determined by the board of <br/>
<a id="pl.231.23"></a><var>231.23</var>trustees following either an updated actuarial valuation including the proposed change <br/>
<a id="pl.231.24"></a><var>231.24</var>or an estimate of the expected actuarial impact of the proposed change prepared by the <br/>
<a id="pl.231.25"></a><var>231.25</var>actuary of the relief association. If a relief association adopts or amends its articles <br/>
<a id="pl.231.26"></a><var>231.26</var>of incorporation or bylaws without municipal ratification under this subdivision, and, <br/>
<a id="pl.231.27"></a><var>231.27</var>subsequent to the amendment or adoption, the financial requirements of the special fund <br/>
<a id="pl.231.28"></a><var>231.28</var>under this section are such so as to require financial support from the municipality, the <br/>
<a id="pl.231.29"></a><var>231.29</var>provision which was implemented without municipal ratification is no longer effective <br/>
<a id="pl.231.30"></a><var>231.30</var>without municipal ratification, and any service pensions or ancillary benefits payable after <br/>
<a id="pl.231.31"></a><var>231.31</var>that date must be paid only in accordance with the articles of incorporation or bylaws as <br/>
<a id="pl.231.32"></a><var>231.32</var>amended or adopted with municipal ratification.<br/>
<a id="pl.231.33"></a><var>231.33</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.14.11.0"></a><a id="pl.231.34"></a><var>231.34</var>    Sec. 11. Minnesota Statutes 2009 Supplement, section 424A.05, subdivision 3, is <br/>
<a id="pl.231.35"></a><var>231.35</var>amended to read:<br/>
<a id="pl.232.1"></a><var>232.1</var>    Subd. 3. <b>Authorized disbursements from the special fund.</b> (a) Disbursements <br/>
<a id="pl.232.2"></a><var>232.2</var>from the special fund may not be made for any purpose other than one of the following:<br/>
<a id="pl.232.3"></a><var>232.3</var>    (1) for the payment of service pensions to retired members of the relief association if <br/>
<a id="pl.232.4"></a><var>232.4</var>authorized and paid under law and the bylaws governing the relief association;<br/>
<a id="pl.232.5"></a><var>232.5</var>(2) for the purchase of an annuity for the applicable person under section 424A.015, <br/>
<a id="pl.232.6"></a><var>232.6</var>subdivision 3, for the transfer of service pension or benefit amounts to the applicable <br/>
<a id="pl.232.7"></a><var>232.7</var>person's individual retirement account under section 424A.015, subdivision 4, or to the <br/>
<a id="pl.232.8"></a><var>232.8</var>applicable person's account in the Minnesota deferred compensation plan under section <br/>
<a id="pl.232.9"></a><var>232.9</var>424A.015, subdivision 5;<br/>
<a id="pl.232.10"></a><var>232.10</var>    (2) (3) for the payment of temporary or permanent disability benefits to disabled <br/>
<a id="pl.232.11"></a><var>232.11</var>members of the relief association if authorized and paid under law and specified in amount <br/>
<a id="pl.232.12"></a><var>232.12</var>in the bylaws governing the relief association;<br/>
<a id="pl.232.13"></a><var>232.13</var>    (3) (4) for the payment of survivor benefits to surviving spouses and surviving <br/>
<a id="pl.232.14"></a><var>232.14</var>children, or if none, to designated beneficiaries, of deceased members of the relief <br/>
<a id="pl.232.15"></a><var>232.15</var>association, and if no survivors and if no designated beneficiary, or for the payment of a <br/>
<a id="pl.232.16"></a><var>232.16</var>death benefit to the estate of the deceased active or deferred firefighter, if authorized by <br/>
<a id="pl.232.17"></a><var>232.17</var>and paid under law and specified in amount in the bylaws governing the relief association;<br/>
<a id="pl.232.18"></a><var>232.18</var>    (4) (5) for the payment of the fees, dues and assessments to the Minnesota State <br/>
<a id="pl.232.19"></a><var>232.19</var>Fire Department Association and to the Minnesota Area Relief Association Coalition in <br/>
<a id="pl.232.20"></a><var>232.20</var>order to entitle relief association members to membership in and the benefits of these <br/>
<a id="pl.232.21"></a><var>232.21</var>associations or organizations; <br/>
<a id="pl.232.22"></a><var>232.22</var>(5) (6) for the payment of insurance premiums to the state Volunteer Firefighters <br/>
<a id="pl.232.23"></a><var>232.23</var>Benefit Association, or an insurance company licensed by the state of Minnesota offering <br/>
<a id="pl.232.24"></a><var>232.24</var>casualty insurance, in order to entitle relief association members to membership in and the <br/>
<a id="pl.232.25"></a><var>232.25</var>benefits of the association or organization; and<br/>
<a id="pl.232.26"></a><var>232.26</var>    (6) (7) for the payment of administrative expenses of the relief association as <br/>
<a id="pl.232.27"></a><var>232.27</var>authorized under section 
         <statute_ref>69.80</statute_ref>. <br/>
<a id="pl.232.28"></a><var>232.28</var>    (b) For purposes of this chapter, for a monthly benefit volunteer fire relief association <br/>
<a id="pl.232.29"></a><var>232.29</var>or for a combination lump-sum and monthly benefit volunteer fire relief association where <br/>
<a id="pl.232.30"></a><var>232.30</var>a monthly benefit service pension has been elected by or a monthly benefit is payable with <br/>
<a id="pl.232.31"></a><var>232.31</var>respect to a firefighter, a designated beneficiary must be a natural person. For purposes of <br/>
<a id="pl.232.32"></a><var>232.32</var>this chapter, for a defined contribution volunteer fire relief association, for a lump-sum <br/>
<a id="pl.232.33"></a><var>232.33</var>volunteer fire relief association, or for a combination lump-sum and monthly benefit <br/>
<a id="pl.232.34"></a><var>232.34</var>volunteer fire relief association where a lump-sum service pension has been elected by <br/>
<a id="pl.232.35"></a><var>232.35</var>or a lump-sum benefit is payable with respect to a firefighter, a designated beneficiary <br/>
<a id="pl.232.36"></a><var>232.36</var>may be a trust created under chapter 501B.<br/>
<a id="pl.233.1"></a><var>233.1</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.14.12.0"></a><a id="pl.233.2"></a><var>233.2</var>    Sec. 12. Minnesota Statutes 2009 Supplement, section 424A.05, is amended by adding <br/>
<a id="pl.233.3"></a><var>233.3</var>a subdivision to read:<br/>
<a id="pl.233.4"></a><var>233.4</var>    Subd. 3a. <b>Corrections of erroneous special fund deposits.</b> Upon notification <br/>
<a id="pl.233.5"></a><var>233.5</var>of funds deposited in error in the special fund and after presentation of evidence that <br/>
<a id="pl.233.6"></a><var>233.6</var>the error occurred in good faith, the state auditor may require the relief association to <br/>
<a id="pl.233.7"></a><var>233.7</var>provide a written legal opinion concluding that the transfer of funds from the special <br/>
<a id="pl.233.8"></a><var>233.8</var>fund is consistent with federal and state law. Taking into consideration the evidence of <br/>
<a id="pl.233.9"></a><var>233.9</var>good faith presented and the legal opinion, if any, provided, the state auditor may order <br/>
<a id="pl.233.10"></a><var>233.10</var>the transfer from the special fund to the appropriate fund or account an amount equal <br/>
<a id="pl.233.11"></a><var>233.11</var>to the funds deposited in error.<br/>
<a id="pl.233.12"></a><var>233.12</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.14.13.0"></a><a id="pl.233.13"></a><var>233.13</var>    Sec. 13. <b> REPEALER.</b><br/>
<a id="pl.233.14"></a><var>233.14</var>(a) Minnesota Statutes 2009 Supplement, section 424A.001, subdivision 6, is <br/>
<a id="pl.233.15"></a><var>233.15</var>repealed.<br/>
<a id="pl.233.16"></a><var>233.16</var>(b) Laws 2009, chapter 169, article 10, section 32, is repealed.<br/>
<a id="pl.233.17"></a><var>233.17</var><b>EFFECTIVE DATE.</b>Paragraph (a) is effective the day following final enactment. <br/>
<a id="pl.233.18"></a><var>233.18</var>Paragraph (b) is effective retroactively from July 1, 2009.<br/>
<br/>
<a id="bill.15.0.0"></a>

<a id="bill.15.1.0"></a><a id="pl.233.21"></a><var>233.21</var>    Section 1. <b>PERA-GENERAL; PURCHASE OF OMITTED INVER GROVE </b><br/>
<a id="pl.233.22"></a><var>233.22</var><b>HEIGHTS SCHOOL DISTRICT OMITTED MEMBER CONTRIBUTIONS.</b><br/>
<a id="pl.233.23"></a><var>233.23</var>(a) Notwithstanding any provision of law to the contrary, an eligible person <br/>
<a id="pl.233.24"></a><var>233.24</var>described in paragraph (b) is entitled to purchase from the general employees retirement <br/>
<a id="pl.233.25"></a><var>233.25</var>plan of the Public Employees Retirement Association allowable service credit under <br/>
<a id="pl.233.26"></a><var>233.26</var>Minnesota Statutes, section 353.01, subdivision 16, for the period of omitted member <br/>
<a id="pl.233.27"></a><var>233.27</var>deductions described in paragraph (c).<br/>
<a id="pl.233.28"></a><var>233.28</var>(b) An eligible person is a person who:<br/>
<a id="pl.233.29"></a><var>233.29</var>(1) was born on April 17, 1948;<br/>
<a id="pl.233.30"></a><var>233.30</var>(2) is a current employee of Independent School District No. 199, Inver Grove <br/>
<a id="pl.233.31"></a><var>233.31</var>Heights;<br/>
<a id="pl.234.1"></a><var>234.1</var>(3) is a current member of the general employees retirement plan of the Public <br/>
<a id="pl.234.2"></a><var>234.2</var>Employees Retirement Association;<br/>
<a id="pl.234.3"></a><var>234.3</var>(4) was employed by Independent School District No. 199, Inver Grove Heights, <br/>
<a id="pl.234.4"></a><var>234.4</var>on August 26, 1985; and<br/>
<a id="pl.234.5"></a><var>234.5</var>(5) was not reported by Independent School District No. 199, Inver Grove Heights, <br/>
<a id="pl.234.6"></a><var>234.6</var>for retirement coverage by and membership in the general employees retirement plan of <br/>
<a id="pl.234.7"></a><var>234.7</var>the Public Employees Retirement Association until September 1, 1986.<br/>
<a id="pl.234.8"></a><var>234.8</var>(c) The period of uncredited service authorized for purchase is the period of August <br/>
<a id="pl.234.9"></a><var>234.9</var>26, 1985, until August 31, 1986, during which no member contributions for the general <br/>
<a id="pl.234.10"></a><var>234.10</var>employees retirement plan of the Public Employees Retirement Association were <br/>
<a id="pl.234.11"></a><var>234.11</var>deducted from the eligible person's salary by Independent School District No. 199, Inver <br/>
<a id="pl.234.12"></a><var>234.12</var>Grove Heights.<br/>
<a id="pl.234.13"></a><var>234.13</var>(d) The purchase payment amount payable by the eligible person is four percent of <br/>
<a id="pl.234.14"></a><var>234.14</var>the eligible person's salary under Minnesota Statutes 1984, section 353.01, subdivision <br/>
<a id="pl.234.15"></a><var>234.15</var>10, from Independent School District No. 199, Inver Grove Heights, during the period of <br/>
<a id="pl.234.16"></a><var>234.16</var>August 26, 1985, until August 31, 1986, plus annual compound interest on that amount at <br/>
<a id="pl.234.17"></a><var>234.17</var>the rate of 8.5 percent from March 1, 1986, until the date on which payment is made to <br/>
<a id="pl.234.18"></a><var>234.18</var>the Public Employees Retirement Association. The purchase payment amount payable <br/>
<a id="pl.234.19"></a><var>234.19</var>by Independent School District No. 199, Inver Grove Heights, is the balance of the full <br/>
<a id="pl.234.20"></a><var>234.20</var>actuarial value prior service credit purchase payment amount determined under Minnesota <br/>
<a id="pl.234.21"></a><var>234.21</var>Statutes, section 356.551, as of the first day of the month next following the receipt of the <br/>
<a id="pl.234.22"></a><var>234.22</var>eligible person's payment that is remaining after deducting the purchase payment amount <br/>
<a id="pl.234.23"></a><var>234.23</var>payable by the eligible person.<br/>
<a id="pl.234.24"></a><var>234.24</var>(e) The school district purchase payment amount payable under paragraph (d) must <br/>
<a id="pl.234.25"></a><var>234.25</var>be made on or before the 15th of the month next following the receipt of the eligible <br/>
<a id="pl.234.26"></a><var>234.26</var>person's payment under paragraph (d). If the school district purchase payment amount is <br/>
<a id="pl.234.27"></a><var>234.27</var>not paid in a timely fashion, the amount due accrues compound monthly interest at the <br/>
<a id="pl.234.28"></a><var>234.28</var>rate of 0.71 percent per month from the first day of the month next following the receipt <br/>
<a id="pl.234.29"></a><var>234.29</var>of the eligible person's payment until the school district purchase payment amount is <br/>
<a id="pl.234.30"></a><var>234.30</var>received by the Public Employees Retirement Association. If the school district purchase <br/>
<a id="pl.234.31"></a><var>234.31</var>payment amount is not paid to the Public Employees Retirement Association 90 days <br/>
<a id="pl.234.32"></a><var>234.32</var>after the receipt of the eligible person's payment, the executive director shall notify <br/>
<a id="pl.234.33"></a><var>234.33</var>the commissioner of management and budget, the commissioner of education, and the <br/>
<a id="pl.234.34"></a><var>234.34</var>commissioner of revenue of that unpaid obligation and the unpaid obligation must be <br/>
<a id="pl.234.35"></a><var>234.35</var>deducted from any state aid otherwise payable to the school district, plus interest.<br/>
<a id="pl.235.1"></a><var>235.1</var>(f) The eligible person must provide the executive director of the Public Employees <br/>
<a id="pl.235.2"></a><var>235.2</var>Retirement Association with any relevant requested information pertaining to this service <br/>
<a id="pl.235.3"></a><var>235.3</var>credit purchase.<br/>
<a id="pl.235.4"></a><var>235.4</var>(g) Authority to make a service credit purchase under this section expires on June <br/>
<a id="pl.235.5"></a><var>235.5</var>30, 2011, or upon the termination from public employment under Minnesota Statutes, <br/>
<a id="pl.235.6"></a><var>235.6</var>section 353.01, subdivision 11a, whichever occurs earlier.<br/>
<a id="pl.235.7"></a><var>235.7</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.15.2.0"></a><a id="pl.235.8"></a><var>235.8</var>    Sec. 2. <b>TEACHERS RETIREMENT ASSOCIATION; SECOND CHANCE </b><br/>
<a id="pl.235.9"></a><var>235.9</var><b>RETIREMENT COVERAGE AUTHORITY FOR IRAP MEMBER.</b><br/>
<a id="pl.235.10"></a><var>235.10</var>(a) Notwithstanding any provision of Minnesota Statutes, chapter 352, 353, or <br/>
<a id="pl.235.11"></a><var>235.11</var>354B or section 356.551 to the contrary, an eligible person described in paragraph (b) is <br/>
<a id="pl.235.12"></a><var>235.12</var>entitled to elect retirement coverage for Minnesota State Colleges and Universities System <br/>
<a id="pl.235.13"></a><var>235.13</var>employment by the Teachers Retirement Association under Minnesota Statutes, section <br/>
<a id="pl.235.14"></a><var>235.14</var>354B.21, subdivisions 2 and 3, despite the time limitation on the election.<br/>
<a id="pl.235.15"></a><var>235.15</var>(b) An eligible person is a person who:<br/>
<a id="pl.235.16"></a><var>235.16</var>(1) was born on July 19, 1948;<br/>
<a id="pl.235.17"></a><var>235.17</var>(2) was employed by Mankato State University in 1969, with retirement coverage in <br/>
<a id="pl.235.18"></a><var>235.18</var>the general state employees retirement plan of the Minnesota State Retirement System, for <br/>
<a id="pl.235.19"></a><var>235.19</var>which a refund of member contributions and interest was taken before 2007;<br/>
<a id="pl.235.20"></a><var>235.20</var>(3) was employed by the city of Austin in the early 1980s, with retirement coverage <br/>
<a id="pl.235.21"></a><var>235.21</var>in the general employees retirement plan of the Public Employees Retirement Association, <br/>
<a id="pl.235.22"></a><var>235.22</var>for which a refund of member contributions and interest was taken before 2007;<br/>
<a id="pl.235.23"></a><var>235.23</var>(4) is employed by the Minnesota State Colleges and Universities System at <br/>
<a id="pl.235.24"></a><var>235.24</var>Riverland Community College; and<br/>
<a id="pl.235.25"></a><var>235.25</var>(5) had the person's employment position upgraded by the Minnesota State Colleges <br/>
<a id="pl.235.26"></a><var>235.26</var>and Universities System on September 9, 2007, and had retirement coverage transferred <br/>
<a id="pl.235.27"></a><var>235.27</var>by operation of law to the higher education individual retirement account plan.<br/>
<a id="pl.235.28"></a><var>235.28</var>(c) An election to change retirement coverage from the Minnesota State Colleges <br/>
<a id="pl.235.29"></a><var>235.29</var>and Universities System individual retirement account plan to the Teachers Retirement <br/>
<a id="pl.235.30"></a><var>235.30</var>Association must be made by July 1, 2010, and is retroactive to September 9, 2007. If <br/>
<a id="pl.235.31"></a><var>235.31</var>the election is made, Minnesota Statutes, section 356.551, applies to the purchase of <br/>
<a id="pl.235.32"></a><var>235.32</var>past service except for subdivision 1, paragraph (c), of that provision, which requires <br/>
<a id="pl.235.33"></a><var>235.33</var>all refunds to be paid before the service credit purchase. The eligible person's account <br/>
<a id="pl.235.34"></a><var>235.34</var>in the individual retirement account plan must be liquidated by transfer to the Teachers <br/>
<a id="pl.235.35"></a><var>235.35</var>Retirement Association fund by August 1, 2010, and used to cover part of the service <br/>
<a id="pl.236.1"></a><var>236.1</var>credit purchase payment amount. Any remaining payment amount must be paid in a lump <br/>
<a id="pl.236.2"></a><var>236.2</var>sum to the executive director of the Teachers Retirement Association for deposit in the <br/>
<a id="pl.236.3"></a><var>236.3</var>Teachers Retirement Association fund by September 1, 2010. Retroactive service credit <br/>
<a id="pl.236.4"></a><var>236.4</var>in the Teachers Retirement Association must be granted to the eligible person once the <br/>
<a id="pl.236.5"></a><var>236.5</var>transfers and payments required under this paragraph have been made.<br/>
<a id="pl.236.6"></a><var>236.6</var>(d) If an eligible person under paragraph (b) elects Teachers Retirement Association <br/>
<a id="pl.236.7"></a><var>236.7</var>coverage but fails to make the full payment required under paragraph (c), the election of <br/>
<a id="pl.236.8"></a><var>236.8</var>Teachers Retirement Association coverage is voided and the individual retains coverage <br/>
<a id="pl.236.9"></a><var>236.9</var>by the Minnesota State Colleges and Universities System individual retirement account <br/>
<a id="pl.236.10"></a><var>236.10</var>plan. If amounts were transferred under paragraph (c) from the individual retirement <br/>
<a id="pl.236.11"></a><var>236.11</var>account plan, those amounts must be returned to the individual's account or accounts <br/>
<a id="pl.236.12"></a><var>236.12</var>under that plan.<br/>
<a id="pl.236.13"></a><var>236.13</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.16.0.0"></a>

<a id="bill.16.1.0"></a><a id="pl.236.16"></a><var>236.16</var>    Section 1. Minnesota Statutes 2008, section 356.24, subdivision 1, is amended to read:<br/>
<a id="pl.236.17"></a><var>236.17</var>    Subdivision 1. <b>Restriction; exceptions.</b> (a) It is unlawful for a school district <br/>
<a id="pl.236.18"></a><var>236.18</var>or other governmental subdivision or state agency to levy taxes for, or to contribute <br/>
<a id="pl.236.19"></a><var>236.19</var>public funds to a supplemental pension or deferred compensation plan that is established, <br/>
<a id="pl.236.20"></a><var>236.20</var>maintained, and operated in addition to a primary pension program for the benefit of the <br/>
<a id="pl.236.21"></a><var>236.21</var>governmental subdivision employees other than:<br/>
<a id="pl.236.22"></a><var>236.22</var>    (1) to a supplemental pension plan that was established, maintained, and operated <br/>
<a id="pl.236.23"></a><var>236.23</var>before May 6, 1971;<br/>
<a id="pl.236.24"></a><var>236.24</var>    (2) to a plan that provides solely for group health, hospital, disability, or death <br/>
<a id="pl.236.25"></a><var>236.25</var>benefits;<br/>
<a id="pl.236.26"></a><var>236.26</var>    (3) to the individual retirement account plan established by chapter 354B;<br/>
<a id="pl.236.27"></a><var>236.27</var>    (4) to a plan that provides solely for severance pay under section 
         <statute_ref>465.72</statute_ref> to a retiring <br/>
<a id="pl.236.28"></a><var>236.28</var>or terminating employee; <br/>
<a id="pl.236.29"></a><var>236.29</var>    (5) for employees other than personnel employed by the Board of Trustees of the <br/>
<a id="pl.236.30"></a><var>236.30</var>Minnesota State Colleges and Universities and covered under the Higher Education <br/>
<a id="pl.236.31"></a><var>236.31</var>Supplemental Retirement Plan under chapter 354C, but including city managers covered <br/>
<a id="pl.236.32"></a><var>236.32</var>by an alternative retirement arrangement under section 
         <statute_ref>353.028</statute_ref>, subdivision 3, paragraph <br/>
<a id="pl.236.33"></a><var>236.33</var>(a), or by the defined contribution plan of the Public Employees Retirement Association <br/>
<a id="pl.236.34"></a><var>236.34</var>under section 
         <statute_ref>353.028</statute_ref>, subdivision 3, paragraph (b), if the supplemental plan coverage is <br/>
<a id="pl.237.1"></a><var>237.1</var>provided for in a personnel policy of the public employer or in the collective bargaining <br/>
<a id="pl.237.2"></a><var>237.2</var>agreement between the public employer and the exclusive representative of public <br/>
<a id="pl.237.3"></a><var>237.3</var>employees in an appropriate unit or in the individual employment contract between a city <br/>
<a id="pl.237.4"></a><var>237.4</var>and a city manager, and if for each available investment all fees and historic rates of return <br/>
<a id="pl.237.5"></a><var>237.5</var>for the prior one-, three-, five-, and ten-year periods, or since inception, are disclosed in an <br/>
<a id="pl.237.6"></a><var>237.6</var>easily comprehended document not to exceed two pages, in an amount matching employee <br/>
<a id="pl.237.7"></a><var>237.7</var>contributions on a dollar for dollar basis, but not to exceed an employer contribution of <br/>
<a id="pl.237.8"></a><var>237.8</var>one-half of the available elective deferral permitted per year per employee, under the <br/>
<a id="pl.237.9"></a><var>237.9</var>Internal Revenue Code:<br/>
<a id="pl.237.10"></a><var>237.10</var>    (i) to the state of Minnesota deferred compensation plan under section 
         <statute_ref>352.965</statute_ref>; <br/>
<a id="pl.237.11"></a><var>237.11</var>    (ii) in payment of the applicable portion of the contribution made to any investment <br/>
<a id="pl.237.12"></a><var>237.12</var>eligible under section 403(b) of the Internal Revenue Code, if the employing unit has <br/>
<a id="pl.237.13"></a><var>237.13</var>complied with any applicable pension plan provisions of the Internal Revenue Code with <br/>
<a id="pl.237.14"></a><var>237.14</var>respect to the tax-sheltered annuity program during the preceding calendar year; or<br/>
<a id="pl.237.15"></a><var>237.15</var>    (iii) any other deferred compensation plan offered by the employer under section <br/>
<a id="pl.237.16"></a><var>237.16</var>457 of the Internal Revenue Code;<br/>
<a id="pl.237.17"></a><var>237.17</var>    (6) for personnel employed by the Board of Trustees of the Minnesota State Colleges <br/>
<a id="pl.237.18"></a><var>237.18</var>and Universities and not covered by clause (5), to the supplemental retirement plan under <br/>
<a id="pl.237.19"></a><var>237.19</var>chapter 354C, if the supplemental plan coverage is provided for in a personnel policy <br/>
<a id="pl.237.20"></a><var>237.20</var>or in the collective bargaining agreement of the public employer with the exclusive <br/>
<a id="pl.237.21"></a><var>237.21</var>representative of the covered employees in an appropriate unit, in an amount matching <br/>
<a id="pl.237.22"></a><var>237.22</var>employee contributions on a dollar for dollar basis, but not to exceed an employer <br/>
<a id="pl.237.23"></a><var>237.23</var>contribution of $2,700 a year for each employee;<br/>
<a id="pl.237.24"></a><var>237.24</var>    (7) to a supplemental plan or to a governmental trust to save for postretirement <br/>
<a id="pl.237.25"></a><var>237.25</var>health care expenses qualified for tax-preferred treatment under the Internal Revenue <br/>
<a id="pl.237.26"></a><var>237.26</var>Code, if the supplemental plan coverage is provided for in a personnel policy or in the <br/>
<a id="pl.237.27"></a><var>237.27</var>collective bargaining agreement of a public employer with the exclusive representative of <br/>
<a id="pl.237.28"></a><var>237.28</var>the covered employees in an appropriate unit;<br/>
<a id="pl.237.29"></a><var>237.29</var>    (8) to the laborers national industrial pension fund or to a laborers local pension <br/>
<a id="pl.237.30"></a><var>237.30</var>fund for the employees of a governmental subdivision who are covered by a collective <br/>
<a id="pl.237.31"></a><var>237.31</var>bargaining agreement that provides for coverage by that fund and that sets forth a fund <br/>
<a id="pl.237.32"></a><var>237.32</var>contribution rate, but not to exceed an employer contribution of $5,000 per year per <br/>
<a id="pl.237.33"></a><var>237.33</var>employee;<br/>
<a id="pl.237.34"></a><var>237.34</var>    (9) to the plumbers and pipefitters national pension fund or to a plumbers and <br/>
<a id="pl.237.35"></a><var>237.35</var>pipefitters local pension fund for the employees of a governmental subdivision who are <br/>
<a id="pl.237.36"></a><var>237.36</var>covered by a collective bargaining agreement that provides for coverage by that fund and <br/>
<a id="pl.238.1"></a><var>238.1</var>that sets forth a fund contribution rate, but not to exceed an employer contribution of <br/>
<a id="pl.238.2"></a><var>238.2</var>$5,000 per year per employee;<br/>
<a id="pl.238.3"></a><var>238.3</var>    (10) to the international union of operating engineers pension fund for the employees <br/>
<a id="pl.238.4"></a><var>238.4</var>of a governmental subdivision who are covered by a collective bargaining agreement that <br/>
<a id="pl.238.5"></a><var>238.5</var>provides for coverage by that fund and that sets forth a fund contribution rate, but not to <br/>
<a id="pl.238.6"></a><var>238.6</var>exceed an employer contribution of $5,000 per year per employee; <br/>
<a id="pl.238.7"></a><var>238.7</var>    (11) to a supplemental plan organized and operated under the federal Internal <br/>
<a id="pl.238.8"></a><var>238.8</var>Revenue Code, as amended, that is wholly and solely funded by the employee's <br/>
<a id="pl.238.9"></a><var>238.9</var>accumulated sick leave, accumulated vacation leave, and accumulated severance pay; <br/>
<a id="pl.238.10"></a><var>238.10</var>    (12) to the International Association of Machinists national pension fund for the <br/>
<a id="pl.238.11"></a><var>238.11</var>employees of a governmental subdivision who are covered by a collective bargaining <br/>
<a id="pl.238.12"></a><var>238.12</var>agreement that provides for coverage by that fund and that sets forth a fund contribution <br/>
<a id="pl.238.13"></a><var>238.13</var>rate, but not to exceed an employer contribution of $5,000 per year per employee; or<br/>
<a id="pl.238.14"></a><var>238.14</var>    (13) for employees of United Hospital District, Blue Earth, to the state of Minnesota <br/>
<a id="pl.238.15"></a><var>238.15</var>deferred compensation program, if the employee makes a contribution, in an amount that <br/>
<a id="pl.238.16"></a><var>238.16</var>does not exceed the total percentage of covered salary under section 
         <statute_ref>353.27</statute_ref>, subdivisions <br/>
<a id="pl.238.17"></a><var>238.17</var>3 and 3a; or<br/>
<a id="pl.238.18"></a><var>238.18</var>(14) to the alternative retirement plans established by the Hennepin County Medical <br/>
<a id="pl.238.19"></a><var>238.19</var>Center under section 383B.914, subdivision 5.<br/>
<a id="pl.238.20"></a><var>238.20</var>    (b) No governmental subdivision may make a contribution to a deferred <br/>
<a id="pl.238.21"></a><var>238.21</var>compensation plan operating under section 457 of the Internal Revenue Code for volunteer <br/>
<a id="pl.238.22"></a><var>238.22</var>or emergency on-call firefighters in lieu of providing retirement coverage under the federal <br/>
<a id="pl.238.23"></a><var>238.23</var>Old Age, Survivors, and Disability Insurance Program.<br/>
<a id="pl.238.24"></a><var>238.24</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>