<a id="pl.1.3"></a><var>1.3</var>administrative provisions; PERA administrative provisions; benefit accrual rate <br/>
<a id="pl.1.4"></a><var>1.4</var>specification; revisions and repeals of former local police and paid firefighter <br/>
<a id="pl.1.5"></a><var>1.5</var>relief association laws; volunteer firefighter retirement changes; one person <br/>
<a id="pl.1.6"></a><var>1.6</var>and small group retirement changes; miscellaneous provisions; state patrol <br/>
<a id="pl.1.7"></a><var>1.7</var>retirement plan financial solvency measures; PERA plans salary definitions; <br/>
<a id="pl.1.8"></a><var>1.8</var>public employees police and fire retirement plan financial solvency measures; <br/>
<a id="pl.1.9"></a><var>1.9</var>Teachers Retirement Association early retirement reduction factors; first class <br/>
<a id="pl.1.10"></a><var>1.10</var>city teacher retirement increases and financial solvency measures; judges <br/>
<a id="pl.1.11"></a><var>1.11</var>retirement plan financial solvency measures; requiring reports; appropriating <br/>
<a id="pl.1.12"></a><var>1.12</var>money;amending Minnesota Statutes 2012, sections 3.85, subdivision 10; <br/>
<a id="pl.1.13"></a><var>1.13</var>3A.011; 3A.03, subdivision 3; 3A.07; 3A.115; 3A.13; 3A.15; 6.495, subdivisions <br/>
<a id="pl.1.14"></a><var>1.14</var>1, 3; 6.67; 11A.24, subdivision 1; 13D.01, subdivision 1; 69.011, subdivisions <br/>
<a id="pl.1.15"></a><var>1.15</var>1, 2, 3, 4; 69.021, subdivisions 1, 2, 3, 4, 5, 7, 7a, 8, 9, 10, 11; 69.031, <br/>
<a id="pl.1.16"></a><var>1.16</var>subdivisions 1, 3, 5; 69.041; 69.051, subdivisions 1, 1a, 1b, 2, 3, 4; 69.33; 69.77, <br/>
<a id="pl.1.17"></a><var>1.17</var>subdivisions 1, 2, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13; 69.771, subdivision 1; 69.774, <br/>
<a id="pl.1.18"></a><var>1.18</var>subdivision 1; 69.80; 275.70, subdivision 5; 297I.10, subdivision 1; 345.381; <br/>
<a id="pl.1.19"></a><var>1.19</var>352.01, subdivisions 2a, 17b; 352.029, subdivisions 1, 2a, 2b, 3, 5; 352.03, <br/>
<a id="pl.1.20"></a><var>1.20</var>subdivisions 4, 8; 352.045, by adding subdivisions; 352.113, subdivisions 4, <br/>
<a id="pl.1.21"></a><var>1.21</var>6, 8, by adding subdivisions; 352.115, subdivision 3; 352.22, subdivision 3; <br/>
<a id="pl.1.22"></a><var>1.22</var>352.87, subdivision 3; 352.93, subdivision 2; 352.95, subdivision 1; 352.955, <br/>
<a id="pl.1.23"></a><var>1.23</var>subdivisions 1, 3; 352B.011, subdivisions 4, 13; 352B.02, subdivisions 1a, <br/>
<a id="pl.1.24"></a><var>1.24</var>1c; 352B.08, subdivisions 1, 2, 2a; 352B.10, subdivisions 1, 5, by adding <br/>
<a id="pl.1.25"></a><var>1.25</var>a subdivision; 352B.11, subdivisions 1, 2b; 352D.04, subdivision 2; 353.01, <br/>
<a id="pl.1.26"></a><var>1.26</var>subdivisions 2a, 2b, 6, 10, 16, 17a, 29, 41, 47; 353.03, subdivision 3; 353.031, <br/>
<a id="pl.1.27"></a><var>1.27</var>subdivision 4; 353.27, subdivision 7; 353.29, subdivision 3; 353.34, subdivisions <br/>
<a id="pl.1.28"></a><var>1.28</var>1, 2; 353.35, subdivision 1; 353.50, subdivisions 3, 6; 353.64, subdivision 1a; <br/>
<a id="pl.1.29"></a><var>1.29</var>353.65, subdivisions 2, 3; 353.651, subdivisions 3, 4; 353.656, subdivisions 1, <br/>
<a id="pl.1.30"></a><var>1.30</var>1a, 3a; 353.657, subdivisions 2, 2a, 3, 3a; 353.659; 353.665, subdivisions 1, <br/>
<a id="pl.1.31"></a><var>1.31</var>5, 8, by adding a subdivision; 353.71, subdivision 1; 353E.001, subdivision <br/>
<a id="pl.1.32"></a><var>1.32</var>1; 353E.04, subdivision 3; 353E.06, subdivision 1; 353F.02, subdivisions 3, <br/>
<a id="pl.1.33"></a><var>1.33</var>4, 6, by adding a subdivision; 353F.025, subdivisions 1, 2; 353F.03; 353F.04; <br/>
<a id="pl.1.34"></a><var>1.34</var>353F.05; 353F.051, subdivision 1; 353F.052; 353F.06; 353F.07; 353F.08; <br/>
<a id="pl.1.35"></a><var>1.35</var>353G.05, subdivision 2; 354.07, subdivision 1; 354.44, subdivision 6; 354A.011, <br/>
<a id="pl.1.36"></a><var>1.36</var>subdivision 21; 354A.021, subdivision 2; 354A.12, subdivisions 1, 2a, 3a, 3c, <br/>
<a id="pl.1.37"></a><var>1.37</var>7, by adding subdivisions; 354A.27, subdivision 7, by adding a subdivision; <br/>
<a id="pl.1.38"></a><var>1.38</var>354A.31, subdivisions 3, 4, 4a, 7; 354A.35, subdivision 2; 356.20, subdivisions <br/>
<a id="pl.1.39"></a><var>1.39</var>2, 4; 356.214, subdivision 1; 356.215, subdivisions 1, 8, 18; 356.216; 356.219, <br/>
<a id="pl.2.1"></a><var>2.1</var>subdivisions 1, 2, 8; 356.30, subdivisions 1, 3; 356.315, subdivision 9, by <br/>
<a id="pl.2.2"></a><var>2.2</var>adding a subdivision; 356.401, subdivision 3; 356.406, subdivision 1; 356.415, <br/>
<a id="pl.2.3"></a><var>2.3</var>subdivisions 1, 1a, 1b, 1c, 1e, 2, by adding a subdivision; 356.47, subdivision <br/>
<a id="pl.2.4"></a><var>2.4</var>1; 356.48, subdivision 1; 356.635, subdivision 1; 356.91; 356A.01, subdivision <br/>
<a id="pl.2.5"></a><var>2.5</var>19; 356A.06, subdivision 4; 356A.07, subdivision 2; 423A.02, subdivisions 1, <br/>
<a id="pl.2.6"></a><var>2.6</var>1b, 2, 3, 3a, 4, 5; 424A.001, subdivision 4, by adding a subdivision; 424A.01, <br/>
<a id="pl.2.7"></a><var>2.7</var>subdivision 6; 424A.015, subdivisions 1, 4; 424A.016, subdivision 6; 424A.02, <br/>
<a id="pl.2.8"></a><var>2.8</var>subdivisions 7, 9; 424A.10, subdivisions 1, 2; 475.52, subdivision 6; 490.121, <br/>
<a id="pl.2.9"></a><var>2.9</var>subdivisions 21f, 22, by adding subdivisions; 490.123, subdivisions 1a, 1b; <br/>
<a id="pl.2.10"></a><var>2.10</var>490.124, subdivision 1; proposing coding for new law in Minnesota Statutes, <br/>
<a id="pl.2.11"></a><var>2.11</var>chapters 3A; 6; 353F; 354; 356; 490; repealing Minnesota Statutes 2012, sections <br/>
<a id="pl.2.12"></a><var>2.12</var>3A.02, subdivision 3; 69.021, subdivision 6; 69.77, subdivision 3; 352.045, <br/>
<a id="pl.2.13"></a><var>2.13</var>subdivisions 3, 4; 352.955, subdivision 2; 352B.11, subdivision 2c; 352C.001; <br/>
<a id="pl.2.14"></a><var>2.14</var>352C.091, subdivision 1; 352C.10; 353.29, subdivision 6; 353.64, subdivision 3; <br/>
<a id="pl.2.15"></a><var>2.15</var>353.665, subdivisions 2, 3, 4, 6, 7, 9, 10; 353.667; 353.668; 353.669; 353.6691; <br/>
<a id="pl.2.16"></a><var>2.16</var>353A.01; 353A.02; 353A.03; 353A.04; 353A.05; 353A.06; 353A.07; 353A.08; <br/>
<a id="pl.2.17"></a><var>2.17</var>353A.081; 353A.083; 353A.09; 353A.10; 353B.01; 353B.02; 353B.03; 353B.04; <br/>
<a id="pl.2.18"></a><var>2.18</var>353B.05; 353B.06; 353B.07; 353B.08; 353B.09; 353B.10; 353B.11; 353B.12; <br/>
<a id="pl.2.19"></a><var>2.19</var>353B.13; 353B.14; 353F.02, subdivisions 4, 5; 353F.025, subdivision 3; <br/>
<a id="pl.2.20"></a><var>2.20</var>354A.27, subdivision 6; 356.315, subdivisions 1, 1a, 2, 2a, 2b, 3, 4, 5, 5a, 6, 7, <br/>
<a id="pl.2.21"></a><var>2.21</var>8; 423A.01; 423A.02, subdivision 1a; 423A.04; 423A.05; 423A.07; 423A.10; <br/>
<a id="pl.2.22"></a><var>2.22</var>423A.11; 423A.12; 423A.13; 423A.14; 423A.15; 423A.16; 423A.17; 423A.171; <br/>
<a id="pl.2.23"></a><var>2.23</var>423A.18; 423A.19; 423A.20; 423A.21; 423A.22; 424A.10, subdivision 5.<br/>
<a id="pl.2.24"></a><var>2.24</var>BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:<br/>
<br/>
<a id="bill.1.0.0"></a>

<a id="bill.1.1.0"></a><a id="pl.2.27"></a><var>2.27</var>    Section 1. Minnesota Statutes 2012, section 11A.24, subdivision 1, is amended to read:<br/>
<a id="pl.2.28"></a><var>2.28</var>    Subdivision 1. <b>Securities generally.</b> (a) Pursuant to an investment policy adopted <br/>
<a id="pl.2.29"></a><var>2.29</var>by the state board, the state board is authorized to purchase, sell, lend, and exchange the <br/>
<a id="pl.2.30"></a><var>2.30</var>securities specified in this section, for funds or accounts specifically made subject to this <br/>
<a id="pl.2.31"></a><var>2.31</var>section,. This authority including includes puts and call options, and future contracts, <br/>
<a id="pl.2.32"></a><var>2.32</var>and swap contracts marked to market, if these options and contracts are traded on a <br/>
<a id="pl.2.33"></a><var>2.33</var>contract market regulated by a governmental agency or by a financial institution regulated <br/>
<a id="pl.2.34"></a><var>2.34</var>by a governmental agency. These securities may be owned directly or through shares <br/>
<a id="pl.2.35"></a><var>2.35</var>in exchange-traded or mutual funds, or as units in commingled trusts, subject to any <br/>
<a id="pl.2.36"></a><var>2.36</var>limitations as specified in this section.<br/>
<a id="pl.2.37"></a><var>2.37</var>(b) Any agreement to lend securities must be concurrently collateralized with cash <br/>
<a id="pl.2.38"></a><var>2.38</var>or securities with a market value of not less than 100 percent of the market value of the <br/>
<a id="pl.2.39"></a><var>2.39</var>loaned securities at the time of the agreement. Any agreement for put and call options <br/>
<a id="pl.2.40"></a><var>2.40</var>and futures contracts may only be entered into with a fully offsetting amount of cash or <br/>
<a id="pl.2.41"></a><var>2.41</var>securities. Only securities authorized by this section, excluding those under subdivision 6, <br/>
<a id="pl.2.42"></a><var>2.42</var>paragraph (a), clauses (1) to (3), may be accepted as collateral or offsetting securities.<br/>
<a id="pl.3.1"></a><var>3.1</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.2.0.0"></a>

<a id="bill.2.1.0"></a><a id="pl.3.4"></a><var>3.4</var>    Section 1. Minnesota Statutes 2012, section 3.85, subdivision 10, is amended to read:<br/>
<a id="pl.3.5"></a><var>3.5</var>    Subd. 10. <b>Standards for pension valuations and cost estimates.</b> The commission <br/>
<a id="pl.3.6"></a><var>3.6</var>shall adopt standards prescribing specific detailed methods to calculate, evaluate, and <br/>
<a id="pl.3.7"></a><var>3.7</var>display current and proposed law liabilities, costs, and actuarial equivalents of all public <br/>
<a id="pl.3.8"></a><var>3.8</var>employee pension plans in Minnesota. These standards shall be consistent with chapter <br/>
<a id="pl.3.9"></a><var>3.9</var>356 and be updated annually. At a minimum, the standards must not shall contain a <br/>
<a id="pl.3.10"></a><var>3.10</var>valuation requirement requirements that is inconsistent comply with generally accepted <br/>
<a id="pl.3.11"></a><var>3.11</var>accounting principles applicable to government pension plans. The standards may include <br/>
<a id="pl.3.12"></a><var>3.12</var>additional financial, funding, or valuation requirements that are not required under <br/>
<a id="pl.3.13"></a><var>3.13</var>generally accepted accounting principles applicable to government pension plans.<br/>
<a id="pl.3.14"></a><var>3.14</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.3.15"></a><var>3.15</var>    Sec. 2. Minnesota Statutes 2012, section 3A.011, is amended to read:<br/>
<a id="pl.3.16"></a><var>3.16</var><b>3A.011 ADMINISTRATION OF </b><b>PLAN</b><b> PLANS</b><b>.</b><br/>
<a id="pl.3.17"></a><var>3.17</var>    The executive director and the board of directors of the Minnesota State Retirement <br/>
<a id="pl.3.18"></a><var>3.18</var>System shall administer the legislators retirement plan plans specified in accordance this <br/>
<a id="pl.3.19"></a><var>3.19</var>chapter consistent with this chapter and chapter chapters 356 and 356A.<br/>
<a id="pl.3.20"></a><var>3.20</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2013.<br/>
<br/>
<a id="bill.2.3.0"></a><a id="pl.3.21"></a><var>3.21</var>    Sec. 3. Minnesota Statutes 2012, section 3A.03, subdivision 3, is amended to read:<br/>
<a id="pl.3.22"></a><var>3.22</var>    Subd. 3. <b>Legislators retirement fund.</b> (a) The legislators retirement fund, a special <br/>
<a id="pl.3.23"></a><var>3.23</var>retirement fund, is created within the state treasury and must be credited with assets equal <br/>
<a id="pl.3.24"></a><var>3.24</var>to the participation of the legislators retirement plan in the Minnesota postretirement <br/>
<a id="pl.3.25"></a><var>3.25</var>investment fund as of June 30, 2009, and any investment proceeds on those assets. The <br/>
<a id="pl.3.26"></a><var>3.26</var>legislators retirement fund must be credited with any investment proceeds on the assets of <br/>
<a id="pl.3.27"></a><var>3.27</var>the retirement fund.<br/>
<a id="pl.3.28"></a><var>3.28</var>(b) The payment of annuities under section 
         <statute_ref>3A.115</statute_ref>, paragraph (b), is appropriated <br/>
<a id="pl.3.29"></a><var>3.29</var>from the legislators retirement fund.<br/>
<a id="pl.3.30"></a><var>3.30</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2013.<br/>
<br/>
<a id="bill.2.4.0"></a><a id="pl.4.1"></a><var>4.1</var>    Sec. 4. Minnesota Statutes 2012, section 3A.07, is amended to read:<br/>
<a id="pl.4.2"></a><var>4.2</var><b>3A.07 APPLICATION.</b><br/>
<a id="pl.4.3"></a><var>4.3</var>    (a) Except as provided in paragraph (b) and section 3A.17, this chapter applies <br/>
<a id="pl.4.4"></a><var>4.4</var>to members of the legislature in service after July 1, 1965, who otherwise meet the <br/>
<a id="pl.4.5"></a><var>4.5</var>requirements of this chapter.<br/>
<a id="pl.4.6"></a><var>4.6</var>    (b) Members of the legislature who were elected for the first time after June 30, <br/>
<a id="pl.4.7"></a><var>4.7</var>1997, or members of the legislature who were elected before July 1, 1997, and who, after <br/>
<a id="pl.4.8"></a><var>4.8</var>July 1, 1998, elect not to be members of the plan established by this chapter are covered <br/>
<a id="pl.4.9"></a><var>4.9</var>by the unclassified employees retirement program governed by chapter 352D.<br/>
<a id="pl.4.10"></a><var>4.10</var>    (c) The post-July 1, 1998, coverage election under paragraph (b) is irrevocable <br/>
<a id="pl.4.11"></a><var>4.11</var>and must be made on a form prescribed by the director. The second chance referendum <br/>
<a id="pl.4.12"></a><var>4.12</var>election under Laws 2002, chapter 392, article 15, also is irrevocable.<br/>
<a id="pl.4.13"></a><var>4.13</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2013.<br/>
<br/>
<a id="bill.2.5.0"></a><a id="pl.4.14"></a><var>4.14</var>    Sec. 5. Minnesota Statutes 2012, section 3A.115, is amended to read:<br/>
<a id="pl.4.15"></a><var>4.15</var><b>3A.115 RETIREMENT ALLOWANCE APPROPRIATION; </b><br/>
<a id="pl.4.16"></a><var>4.16</var><b>POSTRETIREMENT ADJUSTMENT.</b><br/>
<a id="pl.4.17"></a><var>4.17</var>(a) The amount necessary to fund the retirement allowance granted under this <br/>
<a id="pl.4.18"></a><var>4.18</var>chapter to a former legislator retiring after June 30, 2003, or to that legislator's survivor, <br/>
<a id="pl.4.19"></a><var>4.19</var>and the retirement allowance granted under section 3A.17 to a former constitutional <br/>
<a id="pl.4.20"></a><var>4.20</var>officer or the survivor of that constitutional officer is appropriated from the general fund to <br/>
<a id="pl.4.21"></a><var>4.21</var>the director to pay pension obligations due to the retiree.<br/>
<a id="pl.4.22"></a><var>4.22</var>(b) The amount necessary to fund the retirement allowance granted under this <br/>
<a id="pl.4.23"></a><var>4.23</var>chapter to a former legislator retiring before July 1, 2003, must be paid from the legislators <br/>
<a id="pl.4.24"></a><var>4.24</var>retirement fund created under section 
         <statute_ref>3A.03, subdivision 3</statute_ref>, until the assets of the fund <br/>
<a id="pl.4.25"></a><var>4.25</var>are exhausted and at that time, the amount necessary to fund the retirement allowances <br/>
<a id="pl.4.26"></a><var>4.26</var>under this paragraph is appropriated from the general fund to the director to pay pension <br/>
<a id="pl.4.27"></a><var>4.27</var>obligations to the retiree and survivor.<br/>
<a id="pl.4.28"></a><var>4.28</var>(c) Retirement allowances payable to retired legislators and their survivors under <br/>
<a id="pl.4.29"></a><var>4.29</var>this chapter must be adjusted as provided in sections 
         <statute_ref>3A.02, subdivision 6</statute_ref>, and 
         <statute_ref>356.415</statute_ref>.<br/>
<a id="pl.4.30"></a><var>4.30</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2013.<br/>
<br/>
<a id="bill.2.6.0"></a><a id="pl.5.1"></a><var>5.1</var>    Sec. 6. Minnesota Statutes 2012, section 3A.13, is amended to read:<br/>
<a id="pl.5.2"></a><var>5.2</var><b>3A.13 EXEMPTION FROM PROCESS AND TAXATION; HEALTH </b><br/>
<a id="pl.5.3"></a><var>5.3</var><b>PREMIUM DEDUCTION.</b><br/>
<a id="pl.5.4"></a><var>5.4</var>(a) The provisions of section 
         <statute_ref>356.401</statute_ref> apply to the legislators retirement plan plans <br/>
<a id="pl.5.5"></a><var>5.5</var>specified in this chapter.<br/>
<a id="pl.5.6"></a><var>5.6</var>(b) The executive director of the Minnesota State Retirement System must, at the <br/>
<a id="pl.5.7"></a><var>5.7</var>request of a retired legislator or constitutional officer who is enrolled in a health insurance <br/>
<a id="pl.5.8"></a><var>5.8</var>plan covering state employees, deduct the person's health insurance premiums from the <br/>
<a id="pl.5.9"></a><var>5.9</var>person's annuity and transfer the amount of the premium to a health insurance carrier <br/>
<a id="pl.5.10"></a><var>5.10</var>covering state employees.<br/>
<a id="pl.5.11"></a><var>5.11</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2013.<br/>
<br/>
<a id="bill.2.7.0"></a><a id="pl.5.12"></a><var>5.12</var>    Sec. 7. Minnesota Statutes 2012, section 3A.15, is amended to read:<br/>
<a id="pl.5.13"></a><var>5.13</var><b>3A.15 </b><b>COORDINATED PROGRAM</b><b> </b><b>PROGRAMS </b><b>OF </b><b>THE </b><b>LEGISLATORS </b><br/>
<a id="pl.5.14"></a><var>5.14</var><b>RETIREMENT PLAN.</b><br/>
<a id="pl.5.15"></a><var>5.15</var>The coordinated program of the legislators retirement plan is created. The provisions <br/>
<a id="pl.5.16"></a><var>5.16</var>of sections 
         <statute_ref>3A.01</statute_ref> to 
         <statute_ref>3A.13</statute_ref> apply to the coordinated program and basic programs of the <br/>
<a id="pl.5.17"></a><var>5.17</var>legislators retirement plan.<br/>
<a id="pl.5.18"></a><var>5.18</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2013.<br/>
<br/>
<a id="bill.2.8.0"></a><a id="pl.5.19"></a><var>5.19</var>    Sec. 8. <b>[3A.17] CONSTITUTIONAL OFFICERS.</b><br/>
<a id="pl.5.20"></a><var>5.20</var>    Subdivision 1. <b>Application.</b> (a) This section specifies the retirement plan applicable <br/>
<a id="pl.5.21"></a><var>5.21</var>to a former constitutional officer who was first elected to a constitutional office after July <br/>
<a id="pl.5.22"></a><var>5.22</var>1, 1967, and before July 1, 1997. The plan includes the applicable portions of chapters <br/>
<a id="pl.5.23"></a><var>5.23</var>352C and 356 in effect on the date on which the person terminated active service as a <br/>
<a id="pl.5.24"></a><var>5.24</var>constitutional officer.<br/>
<a id="pl.5.25"></a><var>5.25</var>(b) Nothing in this section, this act, or Laws 2006, chapter 271, article 10, section <br/>
<a id="pl.5.26"></a><var>5.26</var>33, subdivision 2, is intended to increase or reduce the benefits of former constitutional <br/>
<a id="pl.5.27"></a><var>5.27</var>officers or their survivors or to adversely modify their eligibility for benefits in effect <br/>
<a id="pl.5.28"></a><var>5.28</var>as of June 30, 2012.<br/>
<a id="pl.5.29"></a><var>5.29</var>    Subd. 2. <b>Benefit adjustments.</b> Retirement allowances payable to retired <br/>
<a id="pl.5.30"></a><var>5.30</var>constitutional officers and surviving spouse benefits payable must be adjusted under <br/>
<a id="pl.5.31"></a><var>5.31</var>section 356.415.<br/>
<a id="pl.5.32"></a><var>5.32</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2013.<br/>
<br/>
<a id="bill.2.9.0"></a><a id="pl.6.1"></a><var>6.1</var>    Sec. 9. Minnesota Statutes 2012, section 352.01, subdivision 17b, is amended to read:<br/>
<a id="pl.6.2"></a><var>6.2</var>    Subd. 17b. <b>Duty disability, physical or psychological.</b> "Duty disability, physical <br/>
<a id="pl.6.3"></a><var>6.3</var>or psychological," for a correctional employee, means an occupational disability that is <br/>
<a id="pl.6.4"></a><var>6.4</var>the direct result of an injury incurred during, or a disease arising out of, the performance <br/>
<a id="pl.6.5"></a><var>6.5</var>of normal duties or the performance of less frequent duties either of which are present <br/>
<a id="pl.6.6"></a><var>6.6</var>inherent dangers specific to the correctional employee.<br/>
<a id="pl.6.7"></a><var>6.7</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.6.8"></a><var>6.8</var>    Sec. 10. Minnesota Statutes 2012, section 352.03, subdivision 8, is amended to read:<br/>
<a id="pl.6.9"></a><var>6.9</var>    Subd. 8. <b>Medical adviser.</b> The state commissioner of health or other executive <br/>
<a id="pl.6.10"></a><var>6.10</var>director may contract with an accredited independent organization specializing in <br/>
<a id="pl.6.11"></a><var>6.11</var>disability determinations, licensed physician physicians, or physicians on the staff of the <br/>
<a id="pl.6.12"></a><var>6.12</var>commissioner of health as designated by the commissioner may designate shall, to be the <br/>
<a id="pl.6.13"></a><var>6.13</var>medical adviser of to the director system.<br/>
<a id="pl.6.14"></a><var>6.14</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.2.11.0"></a><a id="pl.6.15"></a><var>6.15</var>    Sec. 11. Minnesota Statutes 2012, section 352.045, is amended by adding a subdivision <br/>
<a id="pl.6.16"></a><var>6.16</var>to read:<br/>
<a id="pl.6.17"></a><var>6.17</var>    Subd. 3a. <b>Contribution rate revision; general state employees retirement plan.</b><br/>
<a id="pl.6.18"></a><var>6.18</var>(a) Notwithstanding the contribution rates stated in plan law, the employee and employer <br/>
<a id="pl.6.19"></a><var>6.19</var>contribution rates for the general state employees retirement plan must be adjusted:<br/>
<a id="pl.6.20"></a><var>6.20</var>(1) if the regular actuarial valuation of the plan under section 356.215 indicates that <br/>
<a id="pl.6.21"></a><var>6.21</var>there is a contribution sufficiency greater than one percent of covered payroll and that the <br/>
<a id="pl.6.22"></a><var>6.22</var>sufficiency has existed for at least two consecutive years, the employee and employer <br/>
<a id="pl.6.23"></a><var>6.23</var>contribution rates must be decreased as determined under paragraph (b) to a level such <br/>
<a id="pl.6.24"></a><var>6.24</var>that the sufficiency is no greater than one percent of covered payroll based on the most <br/>
<a id="pl.6.25"></a><var>6.25</var>recent actuarial valuation; or<br/>
<a id="pl.6.26"></a><var>6.26</var>(2) if the regular actuarial valuation of the plan under section 356.215 indicates that <br/>
<a id="pl.6.27"></a><var>6.27</var>there is a contribution deficiency equal to or greater than 0.5 percent of covered payroll <br/>
<a id="pl.6.28"></a><var>6.28</var>and that the deficiency has existed for at least two consecutive years, the employee and <br/>
<a id="pl.6.29"></a><var>6.29</var>employer contribution rates must be increased as determined under paragraph (c) to a level <br/>
<a id="pl.6.30"></a><var>6.30</var>such that no deficiency exists based on the most recent actuarial valuation.<br/>
<a id="pl.6.31"></a><var>6.31</var>(b) If the actuarially required contribution of the plan is less than the total support <br/>
<a id="pl.6.32"></a><var>6.32</var>provided by the combined employee and employer contribution rates by more than one <br/>
<a id="pl.6.33"></a><var>6.33</var>percent of covered payroll, the plan employee and employer contribution rates must be <br/>
<a id="pl.7.1"></a><var>7.1</var>decreased incrementally over one or more years by no more than 0.25 percent of pay <br/>
<a id="pl.7.2"></a><var>7.2</var>each for employee and employer contribution rates to a level such that there remains a <br/>
<a id="pl.7.3"></a><var>7.3</var>contribution sufficiency of at least one percent of covered payroll. No contribution rate <br/>
<a id="pl.7.4"></a><var>7.4</var>decrease may be made until at least two years have elapsed since any adjustment under <br/>
<a id="pl.7.5"></a><var>7.5</var>this paragraph has been fully implemented.<br/>
<a id="pl.7.6"></a><var>7.6</var>(c) If the actuarially required contribution exceeds the total support provided by the <br/>
<a id="pl.7.7"></a><var>7.7</var>employee and employer contribution rates, the employee and employer contribution rates <br/>
<a id="pl.7.8"></a><var>7.8</var>must be increased equally to eliminate that contribution deficiency. If the contribution <br/>
<a id="pl.7.9"></a><var>7.9</var>deficiency is:<br/>
<a id="pl.7.10"></a><var>7.10</var>(1) less than two percent, the incremental increase may be up to 0.25 percent each <br/>
<a id="pl.7.11"></a><var>7.11</var>for the employee and employer contribution rates;<br/>
<a id="pl.7.12"></a><var>7.12</var>(2) greater than 1.99 percent and less than 4.01 percent, the incremental increase <br/>
<a id="pl.7.13"></a><var>7.13</var>may be up to 0.5 percent each for the employee and employer contribution rates; or<br/>
<a id="pl.7.14"></a><var>7.14</var>(3) greater than four percent, the incremental increase may be up to 0.75 percent <br/>
<a id="pl.7.15"></a><var>7.15</var>each for the employee and employer contribution.<br/>
<a id="pl.7.16"></a><var>7.16</var>(d) Any recommended adjustment to the contribution rates must be reported to <br/>
<a id="pl.7.17"></a><var>7.17</var>the chair and the executive director of the Legislative Commission on Pensions and <br/>
<a id="pl.7.18"></a><var>7.18</var>Retirement by January 15 following receipt of the most recent annual actuarial valuation <br/>
<a id="pl.7.19"></a><var>7.19</var>prepared under section 
<statute_ref>356.215</statute_ref>. The report must include draft legislation to revise the <br/>
<a id="pl.7.20"></a><var>7.20</var>employee and employer contributions stated in plan law. If the Legislative Commission <br/>
<a id="pl.7.21"></a><var>7.21</var>on Pensions and Retirement does not recommend against the rate change or does not <br/>
<a id="pl.7.22"></a><var>7.22</var>recommend a modification in the rate change, the recommended adjustment becomes <br/>
<a id="pl.7.23"></a><var>7.23</var>effective on the first day of the first full payroll period in the fiscal year following receipt <br/>
<a id="pl.7.24"></a><var>7.24</var>of the most recent actuarial valuation that gave rise to the adjustment.<br/>
<a id="pl.7.25"></a><var>7.25</var>(e) A contribution sufficiency of up to one percent of covered payroll must be held <br/>
<a id="pl.7.26"></a><var>7.26</var>in reserve to be used to offset any future actuarially required contributions that are more <br/>
<a id="pl.7.27"></a><var>7.27</var>than the total combined employee and employer contributions.<br/>
<a id="pl.7.28"></a><var>7.28</var>(f) Before any reduction in contributions to eliminate a sufficiency in excess of one <br/>
<a id="pl.7.29"></a><var>7.29</var>percent of covered pay may be recommended, the executive director must review any <br/>
<a id="pl.7.30"></a><var>7.30</var>need for a change in actuarial assumptions, as recommended by the actuary retained under <br/>
<a id="pl.7.31"></a><var>7.31</var>section 
<statute_ref>356.214</statute_ref> in the most recent experience study of the general employees retirement <br/>
<a id="pl.7.32"></a><var>7.32</var>plan prepared under section 
<statute_ref>356.215</statute_ref> and the standards for actuarial work promulgated by <br/>
<a id="pl.7.33"></a><var>7.33</var>the Legislative Commission on Pensions and Retirement that may result in an increase <br/>
<a id="pl.7.34"></a><var>7.34</var>in the actuarially required contribution and must report to the Legislative Commission <br/>
<a id="pl.7.35"></a><var>7.35</var>on Pensions and Retirement any recommendation by the board to use the sufficiency <br/>
<a id="pl.7.36"></a><var>7.36</var>exceeding one percent of covered payroll to offset the impact of an actuarial assumption <br/>
<a id="pl.8.1"></a><var>8.1</var>change recommended by the actuary retained under section 
<statute_ref>356.214, subdivision 1</statute_ref>, and <br/>
<a id="pl.8.2"></a><var>8.2</var>reviewed by the actuary retained by the commission under section 
<statute_ref>356.214, subdivision 4</statute_ref>.<br/>
<a id="pl.8.3"></a><var>8.3</var>(g) No contribution sufficiency in excess of one percent of covered pay may be <br/>
<a id="pl.8.4"></a><var>8.4</var>proposed to be used to increase benefits, and no benefit increase may be proposed that <br/>
<a id="pl.8.5"></a><var>8.5</var>would initiate an automatic adjustment to increase contributions under this subdivision. <br/>
<a id="pl.8.6"></a><var>8.6</var>Any proposed benefit improvement must include a recommendation, prepared by the <br/>
<a id="pl.8.7"></a><var>8.7</var>actuary retained under section 
<statute_ref>356.214, subdivision 1</statute_ref>, and reviewed by the actuary <br/>
<a id="pl.8.8"></a><var>8.8</var>retained by the Legislative Commission on Pensions and Retirement as provided under <br/>
<a id="pl.8.9"></a><var>8.9</var>section 
<statute_ref>356.214, subdivision 4</statute_ref>, on how the benefit modification will be funded.<br/>
<a id="pl.8.10"></a><var>8.10</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.2.12.0"></a><a id="pl.8.11"></a><var>8.11</var>    Sec. 12. Minnesota Statutes 2012, section 352.045, is amended by adding a subdivision <br/>
<a id="pl.8.12"></a><var>8.12</var>to read:<br/>
<a id="pl.8.13"></a><var>8.13</var>    Subd. 3b. <b>Contribution rate revision; correctional state employees retirement </b><br/>
<a id="pl.8.14"></a><var>8.14</var><b>plan and State Patrol retirement plan.</b> (a) Subdivision 3a applies to the correctional <br/>
<a id="pl.8.15"></a><var>8.15</var>state employees retirement plan under this chapter and to the State Patrol retirement plan <br/>
<a id="pl.8.16"></a><var>8.16</var>established under chapter 352B, except as stated in this subdivision.<br/>
<a id="pl.8.17"></a><var>8.17</var>(b) Any limitations on the amount of contribution rate changes stated in subdivision <br/>
<a id="pl.8.18"></a><var>8.18</var>3a apply only to the amount of the employee contribution revision. The employer <br/>
<a id="pl.8.19"></a><var>8.19</var>contribution for the correctional state employees retirement plan or the State Patrol <br/>
<a id="pl.8.20"></a><var>8.20</var>retirement plan, whichever is applicable, must be adjusted so that the employer <br/>
<a id="pl.8.21"></a><var>8.21</var>contribution is equal to 60 percent of the sum of employee plus employer contributions.<br/>
<a id="pl.8.22"></a><var>8.22</var>(c) For the State Patrol retirement plan, a contribution sufficiency of up to two <br/>
<a id="pl.8.23"></a><var>8.23</var>percent of covered payroll, rather than one percent, may be held in reserves without taking <br/>
<a id="pl.8.24"></a><var>8.24</var>action to reduce employee and employer contributions.<br/>
<a id="pl.8.25"></a><var>8.25</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.2.13.0"></a><a id="pl.8.26"></a><var>8.26</var>    Sec. 13. Minnesota Statutes 2012, section 352.113, subdivision 4, is amended to read:<br/>
<a id="pl.8.27"></a><var>8.27</var>    Subd. 4. <b>Medical or psychological examinations; authorization for payment of </b><br/>
<a id="pl.8.28"></a><var>8.28</var><b>benefit.</b> (a) Any physician, psychologist, chiropractor, or physician assistant providing <br/>
<a id="pl.8.29"></a><var>8.29</var>any service specified in this section must be licensed.<br/>
<a id="pl.8.30"></a><var>8.30</var>(b) An applicant shall provide medical, chiropractic, or psychological a detailed <br/>
<a id="pl.8.31"></a><var>8.31</var>report signed by a physician, and at least one additional report signed by a physician, <br/>
<a id="pl.8.32"></a><var>8.32</var>chiropractor, psychologist, or physician assistant with  evidence to support an application <br/>
<a id="pl.8.33"></a><var>8.33</var>for total and permanent disability.<br/>
<a id="pl.9.1"></a><var>9.1</var>(b) The director shall have the employee examined by at least one additional <br/>
<a id="pl.9.2"></a><var>9.2</var>licensed chiropractor, physician, or psychologist designated by the medical adviser. The <br/>
<a id="pl.9.3"></a><var>9.3</var>chiropractors, physicians, or psychologists shall make written reports to the director <br/>
<a id="pl.9.4"></a><var>9.4</var>concerning the employee's disability including must include an expert opinions as to<br/>
<a id="pl.9.5"></a><var>9.5</var> opinion regarding whether the employee is permanently and totally disabled within <br/>
<a id="pl.9.6"></a><var>9.6</var>the meaning of section 
         <statute_ref>352.01, subdivision 17</statute_ref>, and that the disability arose before the <br/>
<a id="pl.9.7"></a><var>9.7</var>employee was placed on any paid or unpaid leave of absence or terminated public service.<br/>
<a id="pl.9.8"></a><var>9.8</var>(c) If there is medical evidence that supports the expectation that at some point <br/>
<a id="pl.9.9"></a><var>9.9</var>the person applying for the disability benefit will no longer be disabled, the decision <br/>
<a id="pl.9.10"></a><var>9.10</var>granting the disability benefit may provide for a termination date upon which the total and <br/>
<a id="pl.9.11"></a><var>9.11</var>permanent disability can be expected to no longer exist. When a termination date is part <br/>
<a id="pl.9.12"></a><var>9.12</var>of the decision granting benefits, prior to the benefit termination the executive director <br/>
<a id="pl.9.13"></a><var>9.13</var>shall review any evidence provided by the disabled employee to show that the disabling <br/>
<a id="pl.9.14"></a><var>9.14</var>condition for which benefits were initially granted continues. If the benefits cease, the <br/>
<a id="pl.9.15"></a><var>9.15</var>disabled employee may follow the appeal procedures described in section 356.96 or may <br/>
<a id="pl.9.16"></a><var>9.16</var>reapply for disability benefits using the process described in this subdivision.<br/>
<a id="pl.9.17"></a><var>9.17</var>(d) Any claim to disability must be supported by a report from the employer <br/>
<a id="pl.9.18"></a><var>9.18</var>indicating that there is no available work that the employee can perform with the disabling <br/>
<a id="pl.9.19"></a><var>9.19</var>condition and that all reasonable accommodations have been considered. Upon request of <br/>
<a id="pl.9.20"></a><var>9.20</var>the executive director, an employer shall provide evidence of the steps the employer has <br/>
<a id="pl.9.21"></a><var>9.21</var>taken to attempt to provide reasonable accommodations and continued employment to <br/>
<a id="pl.9.22"></a><var>9.22</var>the claimant.<br/>
<a id="pl.9.23"></a><var>9.23</var>(c) (e) The director shall also obtain written certification from the employer <br/>
<a id="pl.9.24"></a><var>9.24</var>stating whether the employment has ceased or whether the employee is on sick leave of <br/>
<a id="pl.9.25"></a><var>9.25</var>absence because of a disability that will prevent further service to the employer and as a <br/>
<a id="pl.9.26"></a><var>9.26</var>consequence that the employee is not entitled to compensation from the employer.<br/>
<a id="pl.9.27"></a><var>9.27</var>(d) (f) The medical adviser shall consider the reports of the physicians, physician <br/>
<a id="pl.9.28"></a><var>9.28</var>assistants, psychologists, and chiropractors and any other evidence supplied by the <br/>
<a id="pl.9.29"></a><var>9.29</var>employee or other interested parties. If the medical adviser finds the employee totally and <br/>
<a id="pl.9.30"></a><var>9.30</var>permanently disabled, the adviser shall make appropriate recommendation to the director <br/>
<a id="pl.9.31"></a><var>9.31</var>in writing together with the date from which the employee has been totally disabled. The <br/>
<a id="pl.9.32"></a><var>9.32</var>director shall then determine if the disability occurred within 18 months of filing the <br/>
<a id="pl.9.33"></a><var>9.33</var>application, while still in the employment of the state, and the propriety of authorizing <br/>
<a id="pl.9.34"></a><var>9.34</var>payment of a disability benefit as provided in this section.<br/>
<a id="pl.9.35"></a><var>9.35</var>(e) (g) A terminated employee may apply for a disability benefit within 18 months of <br/>
<a id="pl.9.36"></a><var>9.36</var>termination as long as the disability occurred while in the employment of the state. The <br/>
<a id="pl.10.1"></a><var>10.1</var>fact that an employee is placed on leave of absence without compensation because of <br/>
<a id="pl.10.2"></a><var>10.2</var>disability does not bar that employee from receiving a disability benefit.<br/>
<a id="pl.10.3"></a><var>10.3</var>(f) (h) Unless the payment of a disability benefit has terminated because the <br/>
<a id="pl.10.4"></a><var>10.4</var>employee is no longer totally disabled, or because the employee has reached normal <br/>
<a id="pl.10.5"></a><var>10.5</var>retirement age as provided in this section, the disability benefit must cease with the last <br/>
<a id="pl.10.6"></a><var>10.6</var>payment received by the disabled employee or which had accrued during the lifetime of the <br/>
<a id="pl.10.7"></a><var>10.7</var>employee unless there is a spouse surviving. In that event, the surviving spouse is entitled <br/>
<a id="pl.10.8"></a><var>10.8</var>to the disability benefit for the calendar month in which the disabled employee died.<br/>
<a id="pl.10.9"></a><var>10.9</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.2.14.0"></a><a id="pl.10.10"></a><var>10.10</var>    Sec. 14. Minnesota Statutes 2012, section 352.113, is amended by adding a subdivision <br/>
<a id="pl.10.11"></a><var>10.11</var>to read:<br/>
<a id="pl.10.12"></a><var>10.12</var>    Subd. 4a. <b>Independent medical examination or vocational rehabilitation </b><br/>
<a id="pl.10.13"></a><var>10.13</var><b>counseling.</b> Any individual applying for or receiving disability benefits shall submit <br/>
<a id="pl.10.14"></a><var>10.14</var>to an independent medical examination or an assessment by a certified rehabilitation <br/>
<a id="pl.10.15"></a><var>10.15</var>counselor if requested by the executive director or designee. The examination must be <br/>
<a id="pl.10.16"></a><var>10.16</var>paid for by the system.<br/>
<a id="pl.10.17"></a><var>10.17</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.2.15.0"></a><a id="pl.10.18"></a><var>10.18</var>    Sec. 15. Minnesota Statutes 2012, section 352.113, subdivision 6, is amended to read:<br/>
<a id="pl.10.19"></a><var>10.19</var>    Subd. 6. <b>Regular medical or psychological examinations.</b> At least once each <br/>
<a id="pl.10.20"></a><var>10.20</var>year during the first five years following the allowance of a disability benefit to any <br/>
<a id="pl.10.21"></a><var>10.21</var>employee, and at least once in every three-year period thereafter, the director may require <br/>
<a id="pl.10.22"></a><var>10.22</var>any disabled employee to undergo a provide medical, chiropractic, or psychological <br/>
<a id="pl.10.23"></a><var>10.23</var>examination evidence to support the continuation of the total and permanent disability. <br/>
<a id="pl.10.24"></a><var>10.24</var>The examination must be made at the place of residence of the employee, or at any place <br/>
<a id="pl.10.25"></a><var>10.25</var>mutually agreed upon, evidence must be in a form and manner prescribed by the executive <br/>
<a id="pl.10.26"></a><var>10.26</var>director for review by an expert or experts designated by the medical adviser and engaged <br/>
<a id="pl.10.27"></a><var>10.27</var>by the director. If any examination indicates the medical information provided to the <br/>
<a id="pl.10.28"></a><var>10.28</var>medical adviser indicates that the employee is no longer permanently and totally disabled, <br/>
<a id="pl.10.29"></a><var>10.29</var>or is engaged in or can engage in a gainful occupation, payments of the disability benefit <br/>
<a id="pl.10.30"></a><var>10.30</var>by the fund must be discontinued. The payments must be discontinued as soon as the <br/>
<a id="pl.10.31"></a><var>10.31</var>employee is reinstated to the payroll following a sick leave of absence, but in no case may <br/>
<a id="pl.10.32"></a><var>10.32</var>payment be made for more than 60 days after the medical adviser finds that the employee <br/>
<a id="pl.10.33"></a><var>10.33</var>is no longer permanently and totally disabled.<br/>
<a id="pl.11.1"></a><var>11.1</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.11.2"></a><var>11.2</var>    Sec. 16. Minnesota Statutes 2012, section 352.113, subdivision 8, is amended to read:<br/>
<a id="pl.11.3"></a><var>11.3</var>    Subd. 8. <b>Refusal of examination.</b> If a disabled employee person applying for a <br/>
<a id="pl.11.4"></a><var>11.4</var>disability benefit refuses to submit to an expert a medical or psychological examination, <br/>
<a id="pl.11.5"></a><var>11.5</var>the disability application shall be rejected. If a disability benefit recipient refuses to submit <br/>
<a id="pl.11.6"></a><var>11.6</var>to a medical or psychological examination as required, payments by the fund must be <br/>
<a id="pl.11.7"></a><var>11.7</var>discontinued and the director shall revoke all rights of the employee in any disability benefit.<br/>
<a id="pl.11.8"></a><var>11.8</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.2.17.0"></a><a id="pl.11.9"></a><var>11.9</var>    Sec. 17. Minnesota Statutes 2012, section 352.113, is amended by adding a subdivision <br/>
<a id="pl.11.10"></a><var>11.10</var>to read:<br/>
<a id="pl.11.11"></a><var>11.11</var>    Subd. 14. <b>Disabilitant earnings reports.</b> Disability benefit recipients must report <br/>
<a id="pl.11.12"></a><var>11.12</var>all earnings from reemployment and income from workers' compensation to the system <br/>
<a id="pl.11.13"></a><var>11.13</var>annually by May 15 in a format prescribed by the executive director. If the form is not <br/>
<a id="pl.11.14"></a><var>11.14</var>submitted by June 15, benefits must be suspended effective July 1. If the form deemed <br/>
<a id="pl.11.15"></a><var>11.15</var>acceptable by the executive director is received after the June 15 deadline, benefits shall <br/>
<a id="pl.11.16"></a><var>11.16</var>be reinstated retroactive to July 1.<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.2.18.0"></a><a id="pl.11.18"></a><var>11.18</var>    Sec. 18. Minnesota Statutes 2012, section 352.22, subdivision 3, is amended to read:<br/>
<a id="pl.11.19"></a><var>11.19</var>    Subd. 3. <b>Deferred annuity.</b> (a) An employee who has at least three years of <br/>
<a id="pl.11.20"></a><var>11.20</var>allowable service if employed before July 1, 2010, or who has at least five years of <br/>
<a id="pl.11.21"></a><var>11.21</var>allowable service if employed after June 30, 2010, when termination occurs may elect <br/>
<a id="pl.11.22"></a><var>11.22</var>to leave the accumulated contributions in the fund and thereby be entitled to a deferred <br/>
<a id="pl.11.23"></a><var>11.23</var>retirement annuity. The annuity must be computed under the law in effect when state <br/>
<a id="pl.11.24"></a><var>11.24</var>service terminated, on the basis of the allowable service credited to the person before <br/>
<a id="pl.11.25"></a><var>11.25</var>the termination of service.<br/>
<a id="pl.11.26"></a><var>11.26</var>(b) An employee on layoff or on leave of absence without pay, except a leave of <br/>
<a id="pl.11.27"></a><var>11.27</var>absence for health reasons, and who does not return to state service must have an annuity, <br/>
<a id="pl.11.28"></a><var>11.28</var>deferred annuity, or other benefit to which the employee may become entitled computed <br/>
<a id="pl.11.29"></a><var>11.29</var>under the law in effect on the employee's last working day.<br/>
<a id="pl.11.30"></a><var>11.30</var>(c) No application for a deferred annuity may be made more than 60 days before <br/>
<a id="pl.11.31"></a><var>11.31</var>the time the former employee reaches the required age for entitlement to the payment of <br/>
<a id="pl.11.32"></a><var>11.32</var>the annuity. The deferred annuity begins to accrue no earlier than 60 days before the date <br/>
<a id="pl.12.1"></a><var>12.1</var>the application is filed in the office of the system, but not (1) before the date on which <br/>
<a id="pl.12.2"></a><var>12.2</var>the employee reaches the required age for entitlement to the annuity nor (2) before the <br/>
<a id="pl.12.3"></a><var>12.3</var>day following the termination of state service in a position which is not covered by the <br/>
<a id="pl.12.4"></a><var>12.4</var>retirement system.<br/>
<a id="pl.12.5"></a><var>12.5</var>(d) Application for the accumulated contributions left on deposit with the fund may <br/>
<a id="pl.12.6"></a><var>12.6</var>be made at any time following the date of the termination of service.<br/>
<a id="pl.12.7"></a><var>12.7</var>(e) Deferred annuities must be augmented as provided in section 352.72, subdivision <br/>
<a id="pl.12.8"></a><var>12.8</var>2.<br/>
<a id="pl.12.9"></a><var>12.9</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.2.19.0"></a><a id="pl.12.10"></a><var>12.10</var>    Sec. 19. Minnesota Statutes 2012, section 352.955, subdivision 1, is amended to read:<br/>
<a id="pl.12.11"></a><var>12.11</var>    Subdivision 1. <b>Election to transfer prior MSRS-general service credit.</b> (a) An <br/>
<a id="pl.12.12"></a><var>12.12</var>eligible employee described in paragraph (b) may elect to transfer service credit in the <br/>
<a id="pl.12.13"></a><var>12.13</var>general state employees retirement plan of the Minnesota State Retirement System to the <br/>
<a id="pl.12.14"></a><var>12.14</var>correctional state employees retirement plan for eligible prior correctional employment.<br/>
<a id="pl.12.15"></a><var>12.15</var>    (b) An eligible employee is a person who is covered by Laws 2007, chapter 134, <br/>
<a id="pl.12.16"></a><var>12.16</var>article 3, section 6, or who became eligible for retirement coverage by the correctional <br/>
<a id="pl.12.17"></a><var>12.17</var>state employees retirement plan of the Minnesota State Retirement System under Laws <br/>
<a id="pl.12.18"></a><var>12.18</var>2006, chapter 271, article 2, Laws 2007, chapter 134, article 3, or legislation implementing <br/>
<a id="pl.12.19"></a><var>12.19</var>the recommendations under section 
         <statute_ref>352.91, subdivision 4a</statute_ref>.<br/>
<a id="pl.12.20"></a><var>12.20</var>    (c) Eligible prior correctional employment is employment covered correctional <br/>
<a id="pl.12.21"></a><var>12.21</var>service defined in Laws 2007, chapter 134, article 3, section 6, or is employment by the <br/>
<a id="pl.12.22"></a><var>12.22</var>Department of Corrections or by the Department of Human Services that preceded the <br/>
<a id="pl.12.23"></a><var>12.23</var>effective date of the retirement coverage transfer under Laws 2006, chapter 271, article <br/>
<a id="pl.12.24"></a><var>12.24</var>2, Laws 2007, chapter 134, article 3, or legislation implementing the recommendations <br/>
<a id="pl.12.25"></a><var>12.25</var>under section 
<statute_ref>352.91, subdivision 4a</statute_ref> by the general state employees retirement plan of <br/>
<a id="pl.12.26"></a><var>12.26</var>the Minnesota State Retirement System, is continuous service, and is certified by the <br/>
<a id="pl.12.27"></a><var>12.27</var>commissioner of corrections and the commissioner of human services, whichever applies, <br/>
<a id="pl.12.28"></a><var>12.28</var>and by the commissioner of management and budget to the executive director of the <br/>
<a id="pl.12.29"></a><var>12.29</var>Minnesota State Retirement System as service that would qualify for correctional state <br/>
<a id="pl.12.30"></a><var>12.30</var>employees retirement plan coverage under section 
         <statute_ref>352.91</statute_ref>, if the service was had been <br/>
<a id="pl.12.31"></a><var>12.31</var>rendered after the date of coverage transfer.<br/>
<a id="pl.12.32"></a><var>12.32</var>    (d) The election to transfer past service credit under this section must be made in <br/>
<a id="pl.12.33"></a><var>12.33</var>writing by the applicable person on a form prescribed by the executive director of the <br/>
<a id="pl.12.34"></a><var>12.34</var>Minnesota State Retirement System and must be filed with the executive director of the <br/>
<a id="pl.12.35"></a><var>12.35</var>Minnesota State Retirement System on or before (1) January 1, 2008, or the one year <br/>
<a id="pl.13.1"></a><var>13.1</var>anniversary of the coverage transfer, whichever is later, or (2) the date of the eligible <br/>
<a id="pl.13.2"></a><var>13.2</var>employee's termination of state employment, whichever is earlier.<br/>
<a id="pl.13.3"></a><var>13.3</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.2.20.0"></a><a id="pl.13.4"></a><var>13.4</var>    Sec. 20. Minnesota Statutes 2012, section 352.955, subdivision 3, is amended to read:<br/>
<a id="pl.13.5"></a><var>13.5</var>    Subd. 3. <b>Payment of additional equivalent contributions</b><b>; post-June 30, 2007, </b><br/>
<a id="pl.13.6"></a><var>13.6</var><b>coverage transfers</b><b>.</b> (a) An eligible employee who is transferred to plan coverage after <br/>
<a id="pl.13.7"></a><var>13.7</var>June 30, 2007, and who elects to transfer past service credit under this section must pay <br/>
<a id="pl.13.8"></a><var>13.8</var>an additional member contribution for that prior service period. The additional member <br/>
<a id="pl.13.9"></a><var>13.9</var>contribution is the amount computed under paragraph (b), plus the greater of the amount <br/>
<a id="pl.13.10"></a><var>13.10</var>computed under paragraph (c), or 40 percent of the unfunded actuarial accrued liability <br/>
<a id="pl.13.11"></a><var>13.11</var>attributable to the past service credit transfer.<br/>
<a id="pl.13.12"></a><var>13.12</var>    (b) The executive director shall compute, for the most recent 12 months of service <br/>
<a id="pl.13.13"></a><var>13.13</var>credit eligible for transfer, or for the entire period eligible for transfer if less than 12 <br/>
<a id="pl.13.14"></a><var>13.14</var>months, the difference between the employee contribution rate or rates for the general state <br/>
<a id="pl.13.15"></a><var>13.15</var>employees retirement plan and the employee contribution rate or rates for the correctional <br/>
<a id="pl.13.16"></a><var>13.16</var>state employees retirement plan applied to the eligible employee's salary during that <br/>
<a id="pl.13.17"></a><var>13.17</var>transfer period, plus compound interest at a monthly rate of 0.71 percent.<br/>
<a id="pl.13.18"></a><var>13.18</var>    (c) The executive director shall compute, for any service credit being transferred <br/>
<a id="pl.13.19"></a><var>13.19</var>on behalf of the eligible employee and not included under paragraph (b), the difference <br/>
<a id="pl.13.20"></a><var>13.20</var>between the employee contribution rate or rates for the general state employees retirement <br/>
<a id="pl.13.21"></a><var>13.21</var>plan and the employee contribution rate or rates for the correctional state employees <br/>
<a id="pl.13.22"></a><var>13.22</var>retirement plan applied to the eligible employee's salary during that transfer period, plus <br/>
<a id="pl.13.23"></a><var>13.23</var>compound interest at a monthly rate of 0.71 percent.<br/>
<a id="pl.13.24"></a><var>13.24</var>    (d) The executive director shall compute an amount using the process specified in <br/>
<a id="pl.13.25"></a><var>13.25</var>paragraph (b), but based on differences in employer contribution rates between the general <br/>
<a id="pl.13.26"></a><var>13.26</var>state employees retirement plan and the correctional state employees retirement plan <br/>
<a id="pl.13.27"></a><var>13.27</var>rather than employee contribution rates.<br/>
<a id="pl.13.28"></a><var>13.28</var>    (e) The executive director shall compute an amount using the process specified in <br/>
<a id="pl.13.29"></a><var>13.29</var>paragraph (c), but based on differences in employer contribution rates between the general <br/>
<a id="pl.13.30"></a><var>13.30</var>state employees retirement plan and the correctional state employees retirement plan <br/>
<a id="pl.13.31"></a><var>13.31</var>rather than employee contribution rates.<br/>
<a id="pl.13.32"></a><var>13.32</var>    (f) The additional equivalent member contribution under this subdivision must be <br/>
<a id="pl.13.33"></a><var>13.33</var>paid in a lump sum. Payment must accompany the election to transfer the prior service <br/>
<a id="pl.13.34"></a><var>13.34</var>credit. No transfer election or additional equivalent member contribution payment may be <br/>
<a id="pl.13.35"></a><var>13.35</var>made by a person or accepted by the executive director after the one year anniversary date <br/>
<a id="pl.14.1"></a><var>14.1</var>of the effective date of the retirement coverage transfer, or the date on which the eligible <br/>
<a id="pl.14.2"></a><var>14.2</var>employee terminates state employment, whichever is earlier.<br/>
<a id="pl.14.3"></a><var>14.3</var>    (g) If an eligible employee elects to transfer past service credit under this section <br/>
<a id="pl.14.4"></a><var>14.4</var>and pays the additional equivalent member contribution amount under paragraph (a), the <br/>
<a id="pl.14.5"></a><var>14.5</var>applicable department shall pay an additional equivalent employer contribution amount. <br/>
<a id="pl.14.6"></a><var>14.6</var>The additional employer contribution is the amount computed under paragraph (d), plus <br/>
<a id="pl.14.7"></a><var>14.7</var>the greater of the amount computed under paragraph (e), or 60 percent of the unfunded <br/>
<a id="pl.14.8"></a><var>14.8</var>actuarial accrued liability attributable to the past service credit transfer.<br/>
<a id="pl.14.9"></a><var>14.9</var>    (h) The unfunded actuarial accrued liability attributable to the past service credit <br/>
<a id="pl.14.10"></a><var>14.10</var>transfer is the present value of the benefit obtained by the transfer of the service credit <br/>
<a id="pl.14.11"></a><var>14.11</var>to the correctional state employees retirement plan reduced by the amount of the asset <br/>
<a id="pl.14.12"></a><var>14.12</var>transfer under subdivision 4, by the amount of the member contribution equivalent <br/>
<a id="pl.14.13"></a><var>14.13</var>payment computed under paragraph (b), and by the amount of the employer contribution <br/>
<a id="pl.14.14"></a><var>14.14</var>equivalent payment computed under paragraph (d).<br/>
<a id="pl.14.15"></a><var>14.15</var>    (i) The additional equivalent employer contribution under this subdivision must be <br/>
<a id="pl.14.16"></a><var>14.16</var>paid in a lump sum and must be paid within 30 days of the date on which the executive <br/>
<a id="pl.14.17"></a><var>14.17</var>director of the Minnesota State Retirement System certifies to the applicable department <br/>
<a id="pl.14.18"></a><var>14.18</var>that the employee paid the additional equivalent member contribution.<br/>
<a id="pl.14.19"></a><var>14.19</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.2.21.0"></a><a id="pl.14.20"></a><var>14.20</var>    Sec. 21. Minnesota Statutes 2012, section 352B.011, subdivision 13, is amended to read:<br/>
<a id="pl.14.21"></a><var>14.21</var>    Subd. 13. <b>Surviving spouse.</b> "Surviving spouse" means a member's or former <br/>
<a id="pl.14.22"></a><var>14.22</var>member's legally married spouse who resided with the member or former member at the <br/>
<a id="pl.14.23"></a><var>14.23</var>time of death and was married to the member or former member, for a period of at least <br/>
<a id="pl.14.24"></a><var>14.24</var>one year, during or before the time of membership.<br/>
<a id="pl.14.25"></a><var>14.25</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.2.22.0"></a><a id="pl.14.26"></a><var>14.26</var>    Sec. 22. Minnesota Statutes 2012, section 352B.10, is amended by adding a <br/>
<a id="pl.14.27"></a><var>14.27</var>subdivision to read:<br/>
<a id="pl.14.28"></a><var>14.28</var>    Subd. 7. <b>Disabilitant earnings reports.</b> Disability benefit recipients must report <br/>
<a id="pl.14.29"></a><var>14.29</var>all earnings from reemployment and income from workers' compensation to the system <br/>
<a id="pl.14.30"></a><var>14.30</var>annually by May 15 in a format prescribed by the executive director. If the form is not <br/>
<a id="pl.14.31"></a><var>14.31</var>submitted by June 15, benefits must be suspended effective July 1. If the form deemed <br/>
<a id="pl.14.32"></a><var>14.32</var>acceptable by the executive director is received after the June 15 deadline, benefits shall <br/>
<a id="pl.14.33"></a><var>14.33</var>be reinstated retroactive to July 1.<br/>
<a id="pl.15.1"></a><var>15.1</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.2.23.0"></a><a id="pl.15.2"></a><var>15.2</var>    Sec. 23. Minnesota Statutes 2012, section 352D.04, subdivision 2, is amended to read:<br/>
<a id="pl.15.3"></a><var>15.3</var>    Subd. 2. <b>Contribution rates.</b> (a) The money used to purchase shares under this <br/>
<a id="pl.15.4"></a><var>15.4</var>section is the employee and employer contributions provided in this subdivision.<br/>
<a id="pl.15.5"></a><var>15.5</var>    (b) The employee contribution is an amount equal to the percent of salary specified <br/>
<a id="pl.15.6"></a><var>15.6</var>in section 
         <statute_ref>352.04, subdivision 2</statute_ref>, or 
         <statute_ref>352.045, subdivision 3</statute_ref> 3a.<br/>
<a id="pl.15.7"></a><var>15.7</var>    (c) The employer contribution is an amount equal to six percent of salary.<br/>
<a id="pl.15.8"></a><var>15.8</var>    (d) For members of the legislature, the contributions under this subdivision also must <br/>
<a id="pl.15.9"></a><var>15.9</var>be made on per diem payments received during a regular or special legislative session, but <br/>
<a id="pl.15.10"></a><var>15.10</var>may not be made on per diem payments received outside of a regular or special legislative <br/>
<a id="pl.15.11"></a><var>15.11</var>session, on the additional compensation attributable to a leadership position under section <br/>
<statute_ref><a id="pl.15.12"></a><var>15.12</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.15.13"></a><var>15.13</var>living expense payments under section 
         <statute_ref>3.103</statute_ref>.<br/>
<a id="pl.15.14"></a><var>15.14</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.15.15"></a><var>15.15</var>subdivision 1, paragraph (c), clause (16), the employee contribution rate is eight percent <br/>
<a id="pl.15.16"></a><var>15.16</var>of salary, and there is no employer contribution.<br/>
<a id="pl.15.17"></a><var>15.17</var>(f) These contributions must be made in the manner provided in section 
         <statute_ref>352.04</statute_ref>, <br/>
<a id="pl.15.18"></a><var>15.18</var>subdivisions 4, 5, and 6.<br/>
<a id="pl.15.19"></a><var>15.19</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.2.24.0"></a><a id="pl.15.20"></a><var>15.20</var>    Sec. 24. Minnesota Statutes 2012, section 356.20, subdivision 4, is amended to read:<br/>
<a id="pl.15.21"></a><var>15.21</var>    Subd. 4. <b>Contents of financial report.</b> (a) The financial report required by <br/>
<a id="pl.15.22"></a><var>15.22</var>this section must contain financial statements and disclosures that indicate the financial <br/>
<a id="pl.15.23"></a><var>15.23</var>operations and position of the retirement plan and fund. The report must conform with <br/>
<a id="pl.15.24"></a><var>15.24</var>generally accepted governmental accounting principles, applied on a consistent basis. The <br/>
<a id="pl.15.25"></a><var>15.25</var>report must be audited.<br/>
<a id="pl.15.26"></a><var>15.26</var>    (b) The report must include, as part of its exhibits or its footnotes, an actuarial <br/>
<a id="pl.15.27"></a><var>15.27</var>disclosure item based on a statement that the actuarial valuation calculations prepared <br/>
<a id="pl.15.28"></a><var>15.28</var>by the actuary retained under section 
         <statute_ref>356.214</statute_ref> or by the actuary retained by the <br/>
<a id="pl.15.29"></a><var>15.29</var>retirement fund or plan, whichever applies, according to comply with applicable actuarial <br/>
<a id="pl.15.30"></a><var>15.30</var>requirements enumerated in section 
         <statute_ref>356.215</statute_ref>, and specified in the most recent standards <br/>
<a id="pl.15.31"></a><var>15.31</var>for actuarial work adopted by the Legislative Commission on Pensions and Retirement. <br/>
<a id="pl.15.32"></a><var>15.32</var>The actuarial value of assets, the actuarial accrued liabilities, including accrued reserves,<br/>
<a id="pl.15.33"></a><var>15.33</var> and the unfunded actuarial accrued liability of the fund or plan must be disclosed. The <br/>
<a id="pl.15.34"></a><var>15.34</var>disclosure item report must contain a declaration certification by the actuary retained <br/>
<a id="pl.16.1"></a><var>16.1</var>under section 
         <statute_ref>356.214</statute_ref> or the actuary retained by the fund or plan, whichever applies, <br/>
<a id="pl.16.2"></a><var>16.2</var>specifying that the required reserves for any retirement, disability, or survivor normal <br/>
<a id="pl.16.3"></a><var>16.3</var>cost and the actuarial accrued liabilities for all benefits provided under a benefit formula<br/>
<a id="pl.16.4"></a><var>16.4</var> are computed in accordance with the entry age actuarial cost method and in accordance <br/>
<a id="pl.16.5"></a><var>16.5</var>with the most recent applicable standards for actuarial work adopted by the Legislative <br/>
<a id="pl.16.6"></a><var>16.6</var>Commission on Pensions and Retirement.<br/>
<a id="pl.16.7"></a><var>16.7</var>    (c) The report must contain an itemized exhibit describing the administrative <br/>
<a id="pl.16.8"></a><var>16.8</var>expenses of the plan, including, but not limited to, the following items, classified on a <br/>
<a id="pl.16.9"></a><var>16.9</var>consistent basis from year to year, and with any further meaningful detail:<br/>
<a id="pl.16.10"></a><var>16.10</var>    (1) personnel expenses;<br/>
<a id="pl.16.11"></a><var>16.11</var>    (2) communication-related expenses;<br/>
<a id="pl.16.12"></a><var>16.12</var>    (3) office building and maintenance expenses;<br/>
<a id="pl.16.13"></a><var>16.13</var>    (4) professional services fees; and<br/>
<a id="pl.16.14"></a><var>16.14</var>    (5) other expenses.<br/>
<a id="pl.16.15"></a><var>16.15</var>    (d) The report must contain an itemized exhibit describing the investment expenses <br/>
<a id="pl.16.16"></a><var>16.16</var>of the plan, including, but not limited to, the following items, classified on a consistent <br/>
<a id="pl.16.17"></a><var>16.17</var>basis from year to year, and with any further meaningful detail:<br/>
<a id="pl.16.18"></a><var>16.18</var>    (1) internal investment-related expenses; and<br/>
<a id="pl.16.19"></a><var>16.19</var>    (2) external investment-related expenses.<br/>
<a id="pl.16.20"></a><var>16.20</var>    (e) Any additional statements or exhibits or more detailed or subdivided itemization <br/>
<a id="pl.16.21"></a><var>16.21</var>of a disclosure item that will enable the management of the plan to portray a true <br/>
<a id="pl.16.22"></a><var>16.22</var>interpretation of the plan's financial condition must be included in the additional <br/>
<a id="pl.16.23"></a><var>16.23</var>statements or exhibits.<br/>
<a id="pl.16.24"></a><var>16.24</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.2.25.0"></a><a id="pl.16.25"></a><var>16.25</var>    Sec. 25. Minnesota Statutes 2012, section 356.214, subdivision 1, is amended to read:<br/>
<a id="pl.16.26"></a><var>16.26</var>    Subdivision 1. <b>Actuary retention.</b> (a) The governing board or managing or <br/>
<a id="pl.16.27"></a><var>16.27</var>administrative official of each public pension plan and retirement fund or plan enumerated <br/>
<a id="pl.16.28"></a><var>16.28</var>in paragraph (b) shall contract with an established actuarial consulting firm to conduct <br/>
<a id="pl.16.29"></a><var>16.29</var>annual actuarial valuations and related services. The principal from the actuarial <br/>
<a id="pl.16.30"></a><var>16.30</var>consulting firm on the contract must be an approved actuary under section 
         <statute_ref>356.215, <br/>
<a id="pl.16.31"></a><var>16.31</var>subdivision 1
         </statute_ref>, paragraph (c).<br/>
<a id="pl.16.32"></a><var>16.32</var>    (b) Actuarial services must include the preparation of actuarial valuations and <br/>
<a id="pl.16.33"></a><var>16.33</var>related actuarial work for the following retirement plans:<br/>
<a id="pl.16.34"></a><var>16.34</var>    (1) the teachers retirement plan, Teachers Retirement Association;<br/>
<a id="pl.16.35"></a><var>16.35</var>    (2) the general state employees retirement plan, Minnesota State Retirement System;<br/>
<a id="pl.17.1"></a><var>17.1</var>    (3) the correctional employees retirement plan, Minnesota State Retirement System;<br/>
<a id="pl.17.2"></a><var>17.2</var>    (4) the State Patrol retirement plan, Minnesota State Retirement System;<br/>
<a id="pl.17.3"></a><var>17.3</var>    (5) the judges retirement plan, Minnesota State Retirement System;<br/>
<a id="pl.17.4"></a><var>17.4</var>    (6) the general employees retirement plan, Public Employees Retirement <br/>
<a id="pl.17.5"></a><var>17.5</var>Association, including the MERF division;<br/>
<a id="pl.17.6"></a><var>17.6</var>    (7) the public employees police and fire plan, Public Employees Retirement <br/>
<a id="pl.17.7"></a><var>17.7</var>Association;<br/>
<a id="pl.17.8"></a><var>17.8</var>    (8) the Duluth teachers retirement plan, Duluth Teachers Retirement Fund <br/>
<a id="pl.17.9"></a><var>17.9</var>Association;<br/>
<a id="pl.17.10"></a><var>17.10</var>    (9) the St. Paul teachers retirement plan, St. Paul Teachers Retirement Fund <br/>
<a id="pl.17.11"></a><var>17.11</var>Association;<br/>
<a id="pl.17.12"></a><var>17.12</var>    (10) the legislators retirement plan, Minnesota State Retirement System; and<br/>
<a id="pl.17.13"></a><var>17.13</var>    (11) the elective state officers retirement plan, Minnesota State Retirement System; <br/>
<a id="pl.17.14"></a><var>17.14</var>and<br/>
<a id="pl.17.15"></a><var>17.15</var>    (12) (11) the local government correctional service retirement plan, Public <br/>
<a id="pl.17.16"></a><var>17.16</var>Employees Retirement Association.<br/>
<a id="pl.17.17"></a><var>17.17</var>(c) The actuarial valuation for the legislators retirement plan must include a separate <br/>
<a id="pl.17.18"></a><var>17.18</var>calculation of total plan actuarial accrued liabilities due to constitutional officer coverage <br/>
<a id="pl.17.19"></a><var>17.19</var>under section 3A.17.<br/>
<a id="pl.17.20"></a><var>17.20</var>    (c) (d) The contracts must require completion of the annual actuarial valuation <br/>
<a id="pl.17.21"></a><var>17.21</var>calculations on a fiscal year basis, with the contents of the actuarial valuation calculations <br/>
<a id="pl.17.22"></a><var>17.22</var>as specified in section 
         <statute_ref>356.215</statute_ref>, and in conformity with the standards for actuarial work <br/>
<a id="pl.17.23"></a><var>17.23</var>adopted by the Legislative Commission on Pensions and Retirement.<br/>
<a id="pl.17.24"></a><var>17.24</var>    The contracts must require completion of annual experience data collection and <br/>
<a id="pl.17.25"></a><var>17.25</var>processing and a quadrennial published experience study for the plans listed in paragraph <br/>
<a id="pl.17.26"></a><var>17.26</var>(b), clauses (1), (2), and (6), as provided for in the standards for actuarial work adopted by <br/>
<a id="pl.17.27"></a><var>17.27</var>the commission. The experience data collection, processing, and analysis must evaluate <br/>
<a id="pl.17.28"></a><var>17.28</var>the following:<br/>
<a id="pl.17.29"></a><var>17.29</var>    (1) individual salary progression;<br/>
<a id="pl.17.30"></a><var>17.30</var>    (2) the rate of return on investments based on the current asset value;<br/>
<a id="pl.17.31"></a><var>17.31</var>    (3) payroll growth;<br/>
<a id="pl.17.32"></a><var>17.32</var>    (4) mortality;<br/>
<a id="pl.17.33"></a><var>17.33</var>    (5) retirement age;<br/>
<a id="pl.17.34"></a><var>17.34</var>    (6) withdrawal; and<br/>
<a id="pl.17.35"></a><var>17.35</var>    (7) disablement.<br/>
<a id="pl.18.1"></a><var>18.1</var>    (d) (e) The actuary shall annually prepare a report to the governing or managing <br/>
<a id="pl.18.2"></a><var>18.2</var>board or administrative official and the legislature, summarizing the results of the actuarial <br/>
<a id="pl.18.3"></a><var>18.3</var>valuation calculations. The actuary shall include with the report any recommendations <br/>
<a id="pl.18.4"></a><var>18.4</var>concerning the appropriateness of the support rates to achieve proper funding of <br/>
<a id="pl.18.5"></a><var>18.5</var>the retirement plans by the required funding dates. The actuary shall, as part of the <br/>
<a id="pl.18.6"></a><var>18.6</var>quadrennial experience study, include recommendations on the appropriateness of the <br/>
<a id="pl.18.7"></a><var>18.7</var>actuarial valuation assumptions required for evaluation in the study.<br/>
<a id="pl.18.8"></a><var>18.8</var>    (e) (f) If the actuarial gain and loss analysis in the actuarial valuation calculations <br/>
<a id="pl.18.9"></a><var>18.9</var>indicates a persistent pattern of sizable gains or losses, the governing or managing board <br/>
<a id="pl.18.10"></a><var>18.10</var>or administrative official shall direct the actuary to prepare a special experience study for <br/>
<a id="pl.18.11"></a><var>18.11</var>a plan listed in paragraph (b), clause (3), (4), (5), (7), (8), (9), (10), (11), or (12), in the <br/>
<a id="pl.18.12"></a><var>18.12</var>manner provided for in the standards for actuarial work adopted by the commission.<br/>
<a id="pl.18.13"></a><var>18.13</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2013.<br/>
<br/>
<a id="bill.2.26.0"></a><a id="pl.18.14"></a><var>18.14</var>    Sec. 26. Minnesota Statutes 2012, section 356.215, subdivision 1, is amended to read:<br/>
<a id="pl.18.15"></a><var>18.15</var>    Subdivision 1. <b>Definitions.</b> (a) For the purposes of sections 
         <statute_ref>3.85</statute_ref> and 
         <statute_ref>356.20</statute_ref> to <br/>
<statute_ref><a id="pl.18.16"></a><var>18.16</var>356.23
         </statute_ref>, each of the terms in the following paragraphs has the meaning given.<br/>
<a id="pl.18.17"></a><var>18.17</var>    (b) "Actuarial valuation" means a set of calculations prepared by an actuary retained <br/>
<a id="pl.18.18"></a><var>18.18</var>under section 
         <statute_ref>356.214 </statute_ref>if so required under section 
         <statute_ref>3.85</statute_ref>, or otherwise, by an approved <br/>
<a id="pl.18.19"></a><var>18.19</var>actuary, to determine the normal cost and the accrued actuarial liabilities of a benefit <br/>
<a id="pl.18.20"></a><var>18.20</var>plan, according to the entry age actuarial cost method and based upon stated assumptions <br/>
<a id="pl.18.21"></a><var>18.21</var>including, but not limited to rates of interest, mortality, salary increase, disability, <br/>
<a id="pl.18.22"></a><var>18.22</var>withdrawal, and retirement and to determine the payment necessary to amortize over a <br/>
<a id="pl.18.23"></a><var>18.23</var>stated period any unfunded accrued actuarial liability disclosed as a result of the actuarial <br/>
<a id="pl.18.24"></a><var>18.24</var>valuation of the benefit plan.<br/>
<a id="pl.18.25"></a><var>18.25</var>    (c) "Approved actuary" means a person who is regularly engaged in the business of <br/>
<a id="pl.18.26"></a><var>18.26</var>providing actuarial services and who is a fellow in the Society of Actuaries.<br/>
<a id="pl.18.27"></a><var>18.27</var>    (d) "Entry age actuarial cost method" means an actuarial cost method under which <br/>
<a id="pl.18.28"></a><var>18.28</var>the actuarial present value of the projected benefits of each individual currently covered <br/>
<a id="pl.18.29"></a><var>18.29</var>by the benefit plan and included in the actuarial valuation is allocated on a level basis over <br/>
<a id="pl.18.30"></a><var>18.30</var>the service of the individual, if the benefit plan is governed by section 
         <statute_ref>69.773</statute_ref>, or over the <br/>
<a id="pl.18.31"></a><var>18.31</var>earnings of the individual, if the benefit plan is governed by any other law, between the <br/>
<a id="pl.18.32"></a><var>18.32</var>entry age and the assumed exit age, with the portion of the actuarial present value which is <br/>
<a id="pl.18.33"></a><var>18.33</var>allocated to the valuation year to be the normal cost and the portion of the actuarial present <br/>
<a id="pl.18.34"></a><var>18.34</var>value not provided for at the valuation date by the actuarial present value of future normal <br/>
<a id="pl.18.35"></a><var>18.35</var>costs to be the actuarial accrued liability, with aggregation in the calculation process to be <br/>
<a id="pl.19.1"></a><var>19.1</var>the sum of the calculated result for each covered individual and with recognition given to <br/>
<a id="pl.19.2"></a><var>19.2</var>any different benefit formulas which may apply to various periods of service.<br/>
<a id="pl.19.3"></a><var>19.3</var>    (e) "Experience study" means a report providing experience data and an actuarial <br/>
<a id="pl.19.4"></a><var>19.4</var>analysis of the adequacy of the actuarial assumptions on which actuarial valuations are <br/>
<a id="pl.19.5"></a><var>19.5</var>based.<br/>
<a id="pl.19.6"></a><var>19.6</var>    (f) "Actuarial value of assets" means:<br/>
<a id="pl.19.7"></a><var>19.7</var>    (1) For the July 1, 2012, actuarial valuation, the market value of all assets as of <br/>
<a id="pl.19.8"></a><var>19.8</var>June 30, 2012, reduced by:<br/>
<a id="pl.19.9"></a><var>19.9</var>    (i) 20 percent of the difference between the actual net change in the market value of <br/>
<a id="pl.19.10"></a><var>19.10</var>assets other than the Minnesota postretirement investment fund between June 30, 2009, <br/>
<a id="pl.19.11"></a><var>19.11</var>and June 30, 2008, and the computed increase in the market value of assets other than the <br/>
<a id="pl.19.12"></a><var>19.12</var>Minnesota postretirement investment fund over that fiscal year period if the assets had <br/>
<a id="pl.19.13"></a><var>19.13</var>earned a rate of return on assets equal to the annual percentage preretirement interest rate <br/>
<a id="pl.19.14"></a><var>19.14</var>assumption used in the actuarial valuation for July 1, 2008;<br/>
<a id="pl.19.15"></a><var>19.15</var>    (ii) 40 percent of the difference between the actual net change in the market value of <br/>
<a id="pl.19.16"></a><var>19.16</var>total assets between June 30, 2010, and June 30, 2009, and the computed increase in the <br/>
<a id="pl.19.17"></a><var>19.17</var>market value of total assets over that fiscal year period if the assets had earned a rate of <br/>
<a id="pl.19.18"></a><var>19.18</var>return on assets equal to the annual percentage preretirement interest rate assumption used <br/>
<a id="pl.19.19"></a><var>19.19</var>in the actuarial valuation for July 1, 2009;<br/>
<a id="pl.19.20"></a><var>19.20</var>    (iii) 60 percent of the difference between the actual net change in the market value <br/>
<a id="pl.19.21"></a><var>19.21</var>of total assets between June 30, 2011, and June 30, 2010, and the computed increase in the <br/>
<a id="pl.19.22"></a><var>19.22</var>market value of total assets over that fiscal year period if the assets had earned a rate of <br/>
<a id="pl.19.23"></a><var>19.23</var>return on assets equal to the annual percentage preretirement interest rate assumption used <br/>
<a id="pl.19.24"></a><var>19.24</var>in the actuarial valuation for July 1, 2010;<br/>
<a id="pl.19.25"></a><var>19.25</var>    (iv) 80 percent of the difference between the actual net change in the market value of <br/>
<a id="pl.19.26"></a><var>19.26</var>total assets between June 30, 2012, and June 30, 2011, and the computed increase in the <br/>
<a id="pl.19.27"></a><var>19.27</var>market value of total assets over that fiscal year period if the assets had earned a rate of <br/>
<a id="pl.19.28"></a><var>19.28</var>return on assets equal to the annual percentage preretirement interest rate assumption used <br/>
<a id="pl.19.29"></a><var>19.29</var>in the actuarial valuation for July 1, 2011; and<br/>
<a id="pl.19.30"></a><var>19.30</var>    (v) if applicable, 20 percent of the difference between the actual net change in the <br/>
<a id="pl.19.31"></a><var>19.31</var>market value of the Minnesota postretirement investment fund between June 30, 2009, <br/>
<a id="pl.19.32"></a><var>19.32</var>and June 30, 2008, and the computed increase in the market value of assets over that fiscal <br/>
<a id="pl.19.33"></a><var>19.33</var>year period if the assets had increased at 8.5 percent annually.<br/>
<a id="pl.19.34"></a><var>19.34</var>    (2) For the July 1, 2013, and following actuarial valuations, the market value of all <br/>
<a id="pl.19.35"></a><var>19.35</var>assets as of the preceding June 30, reduced by:<br/>
<a id="pl.20.1"></a><var>20.1</var>    (i) (1) 20 percent of the difference between the actual net change in the market value <br/>
<a id="pl.20.2"></a><var>20.2</var>of total assets between the June 30 that occurred three years earlier and the June 30 that <br/>
<a id="pl.20.3"></a><var>20.3</var>occurred four years earlier and the computed increase in the market value of total assets <br/>
<a id="pl.20.4"></a><var>20.4</var>over that fiscal year period if the assets had earned a rate of return on assets equal to the <br/>
<a id="pl.20.5"></a><var>20.5</var>annual percentage preretirement interest rate assumption used in the actuarial valuation <br/>
<a id="pl.20.6"></a><var>20.6</var>for the July 1 that occurred four years earlier;<br/>
<a id="pl.20.7"></a><var>20.7</var>    (ii) (2) 40 percent of the difference between the actual net change in the market value <br/>
<a id="pl.20.8"></a><var>20.8</var>of total assets between the June 30 that occurred two years earlier and the June 30 that <br/>
<a id="pl.20.9"></a><var>20.9</var>occurred three years earlier and the computed increase in the market value of total assets <br/>
<a id="pl.20.10"></a><var>20.10</var>over that fiscal year period if the assets had earned a rate of return on assets equal to the <br/>
<a id="pl.20.11"></a><var>20.11</var>annual percentage preretirement interest rate assumption used in the actuarial valuation <br/>
<a id="pl.20.12"></a><var>20.12</var>for the July 1 that occurred three years earlier;<br/>
<a id="pl.20.13"></a><var>20.13</var>    (iii) (3) 60 percent of the difference between the actual net change in the market <br/>
<a id="pl.20.14"></a><var>20.14</var>value of total assets between the June 30 that occurred one year earlier and the June 30 that <br/>
<a id="pl.20.15"></a><var>20.15</var>occurred two years earlier and the computed increase in the market value of total assets <br/>
<a id="pl.20.16"></a><var>20.16</var>over that fiscal year period if the assets had earned a rate of return on assets equal to the <br/>
<a id="pl.20.17"></a><var>20.17</var>annual percentage preretirement interest rate assumption used in the actuarial valuation <br/>
<a id="pl.20.18"></a><var>20.18</var>for the July 1 that occurred two years earlier; and<br/>
<a id="pl.20.19"></a><var>20.19</var>    (iv) (4) 80 percent of the difference between the actual net change in the market <br/>
<a id="pl.20.20"></a><var>20.20</var>value of total assets between the most recent June 30 and the June 30 that occurred <br/>
<a id="pl.20.21"></a><var>20.21</var>one year earlier and the computed increase in the market value of total assets over that <br/>
<a id="pl.20.22"></a><var>20.22</var>fiscal year period if the assets had earned a rate of return on assets equal to the annual <br/>
<a id="pl.20.23"></a><var>20.23</var>percentage preretirement interest rate assumption used in the actuarial valuation for the <br/>
<a id="pl.20.24"></a><var>20.24</var>July 1 that occurred one year earlier.<br/>
<a id="pl.20.25"></a><var>20.25</var>    (g) "Unfunded actuarial accrued liability" means the total current and expected <br/>
<a id="pl.20.26"></a><var>20.26</var>future benefit obligations, reduced by the sum of the actuarial value of assets and the <br/>
<a id="pl.20.27"></a><var>20.27</var>present value of future normal costs.<br/>
<a id="pl.20.28"></a><var>20.28</var>    (h) "Pension benefit obligation" means the actuarial present value of credited <br/>
<a id="pl.20.29"></a><var>20.29</var>projected benefits, determined as the actuarial present value of benefits estimated to be <br/>
<a id="pl.20.30"></a><var>20.30</var>payable in the future as a result of employee service attributing an equal benefit amount, <br/>
<a id="pl.20.31"></a><var>20.31</var>including the effect of projected salary increases and any step rate benefit accrual rate <br/>
<a id="pl.20.32"></a><var>20.32</var>differences, to each year of credited and expected future employee service.<br/>
<a id="pl.20.33"></a><var>20.33</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.2.27.0"></a><a id="pl.20.34"></a><var>20.34</var>    Sec. 27. Minnesota Statutes 2012, section 356.215, subdivision 8, is amended to read:<br/>
<a id="pl.21.1"></a><var>21.1</var>    Subd. 8. <b>Interest and salary assumptions.</b> (a) The actuarial valuation must use <br/>
<a id="pl.21.2"></a><var>21.2</var>the applicable following preretirement interest assumption and the applicable following <br/>
<a id="pl.21.3"></a><var>21.3</var>postretirement interest assumption:<br/>
<a id="pl.21.4"></a><var>21.4</var>(1) select and ultimate interest rate assumption<br/>
<table>
<col width="50px"/>
<col width="35"/>
<col width="15"/>
<col width="15"/>
<tr>
<td><a id="pl.21.5"></a><var>21.5</var><br/>
<a id="pl.21.6"></a><var>21.6</var><br/>
<a id="pl.21.7"></a><var>21.7</var><br/>
<a id="pl.21.8"></a><var>21.8</var><br/>
</td>
<td align="center">plan<br/>
</td>
<td align="center">ultimate <br/>
                  		preretirement <br/>
                  		interest rate <br/>
                  		assumption<br/>
</td>
<td align="center">ultimate <br/>
                  		postretirement <br/>
                  		interest rate <br/>
                  		assumption<br/>
</td>
</tr>
<tr>
<td><a id="pl.21.9"></a><var>21.9</var><br/>
</td>
<td valign="top">general state employees retirement plan<br/>
</td>
<td align="center" valign="top"> 8.5%<br/>
</td>
<td align="center" valign="top"> 6.0%<br/>
</td>
</tr>
<tr>
<td><a id="pl.21.10"></a><var>21.10</var><br/>
</td>
<td valign="top">correctional state employees retirement plan<br/>
</td>
<td align="center" valign="top">8.5<br/>
</td>
<td align="center" valign="top">6.0<br/>
</td>
</tr>
<tr>
<td><a id="pl.21.11"></a><var>21.11</var><br/>
</td>
<td valign="top">State Patrol retirement plan<br/>
</td>
<td align="center" valign="top">8.5<br/>
</td>
<td align="center" valign="top">6.0<br/>
</td>
</tr>
<tr>
<td><a id="pl.21.12"></a><var>21.12</var><br/>
<a id="pl.21.13"></a><var>21.13</var><br/>
<a id="pl.21.14"></a><var>21.14</var><br/>
</td>
<td valign="top">legislators retirement plan, and for the <br/>
constitutional officers calculation of total plan <br/>
liabilities<br/>
</td>
<td align="center" valign="top"> 0.0 <br/>
</td>
<td align="center" valign="top"> -2.0 until June 30, <br/>
2040, and -2.5 after <br/>
June 30, 2040 0.0<br/>
</td>
</tr>
<tr>
<td><a id="pl.21.15"></a><var>21.15</var><br/>
<a id="pl.21.16"></a><var>21.16</var><br/>
<a id="pl.21.17"></a><var>21.17</var><br/>
</td>
<td valign="top">elective state officers retirement plan<br/>
</td>
<td align="center" valign="top"> 0.0 <br/>
</td>
<td align="center" valign="top"> -2.0 until June 30, <br/>
2040, and -2.5 after <br/>
June 30, 2040 <br/>
</td>
</tr>
<tr>
<td><a id="pl.21.18"></a><var>21.18</var><br/>
</td>
<td valign="top">judges retirement plan<br/>
</td>
<td align="center" valign="top">8.5<br/>
</td>
<td align="center" valign="top">6.0<br/>
</td>
</tr>
<tr>
<td><a id="pl.21.19"></a><var>21.19</var><br/>
</td>
<td valign="top">general public employees retirement plan<br/>
</td>
<td align="center" valign="top">8.5<br/>
</td>
<td align="center" valign="top">6.0<br/>
</td>
</tr>
<tr>
<td><a id="pl.21.20"></a><var>21.20</var><br/>
</td>
<td valign="top">public employees police and fire retirement plan<br/>
</td>
<td align="center" valign="top">8.5<br/>
</td>
<td align="center" valign="top">6.0<br/>
</td>
</tr>
<tr>
<td><a id="pl.21.21"></a><var>21.21</var><br/>
<a id="pl.21.22"></a><var>21.22</var><br/>
</td>
<td valign="top">local government correctional service <br/>
                  		retirement plan<br/>
</td>
<td align="center" valign="top">8.5<br/>
</td>
<td align="center" valign="top">6.0<br/>
</td>
</tr>
<tr>
<td><a id="pl.21.23"></a><var>21.23</var><br/>
</td>
<td valign="top">teachers retirement plan<br/>
</td>
<td align="center" valign="top">8.5<br/>
</td>
<td align="center" valign="top">6.0<br/>
</td>
</tr>
<tr>
<td><a id="pl.21.24"></a><var>21.24</var><br/>
</td>
<td valign="top">Duluth teachers retirement plan<br/>
</td>
<td align="center" valign="top">8.5<br/>
</td>
<td align="center" valign="top">8.5<br/>
</td>
</tr>
<tr>
<td><a id="pl.21.25"></a><var>21.25</var><br/>
</td>
<td valign="top">St. Paul teachers retirement plan<br/>
</td>
<td align="center" valign="top">8.5<br/>
</td>
<td align="center" valign="top">8.5<br/>
</td>
</tr>
</table><a id="pl.21.26"></a><var>21.26</var>Except for the legislators retirement plan and the elective state constitutional officers <br/>
<a id="pl.21.27"></a><var>21.27</var>retirement plan calculation of total plan liabilities, the select preretirement interest rate <br/>
<a id="pl.21.28"></a><var>21.28</var>assumption for the period after June 30, 2012, through June 30, 2017, is 8.0 percent. <br/>
<a id="pl.21.29"></a><var>21.29</var>Except for the legislators retirement plan and the elective state constitutional officers <br/>
<a id="pl.21.30"></a><var>21.30</var>retirement plan calculation of total plan liabilities, the select postretirement interest rate <br/>
<a id="pl.21.31"></a><var>21.31</var>assumption for the period after June 30, 2012, through June 30, 2017, is 5.5 percent, <br/>
<a id="pl.21.32"></a><var>21.32</var>except for the Duluth teachers retirement plan and the St. Paul teachers retirement plan, <br/>
<a id="pl.21.33"></a><var>21.33</var>each with a select postretirement interest rate assumption for the period after June 30, <br/>
<a id="pl.21.34"></a><var>21.34</var>2012, through June 30, 2017, of 8.0 percent.<br/>
<a id="pl.21.35"></a><var>21.35</var>(2) single rate preretirement and postretirement interest rate assumption<br/>
<table>
<col width="50px"/>
<col width="16.5"/>
<col width="6.7"/>
<col width="6.5"/>
<tr>
<td><a id="pl.21.36"></a><var>21.36</var><br/>
<a id="pl.21.37"></a><var>21.37</var><br/>
</td>
<td align="center">plan<br/>
</td>
<td align="center">interest rate <br/>
                  		assumption<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.21.38"></a><var>21.38</var><br/>
</td>
<td>Bloomington Fire Department Relief Association<br/>
</td>
<td align="center">6.0<br/>
</td>
<td align="center"></td>
</tr>
<tr>
<td><a id="pl.21.39"></a><var>21.39</var><br/>
<a id="pl.21.40"></a><var>21.40</var><br/>
</td>
<td>local monthly benefit volunteer firefighters relief <br/>
                  		associations<br/>
</td>
<td align="center">5.0<br/>
</td>
<td align="center"></td>
</tr>
</table><a id="pl.22.1"></a><var>22.1</var>    (b) The actuarial valuation must use the applicable following single rate future salary <br/>
<a id="pl.22.2"></a><var>22.2</var>increase assumption, the applicable following modified single rate future salary increase <br/>
<a id="pl.22.3"></a><var>22.3</var>assumption, or the applicable following graded rate future salary increase assumption:<br/>
<a id="pl.22.4"></a><var>22.4</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.22.5"></a><var>22.5</var><br/>
</td>
<td align="center">plan<br/>
</td>
<td align="center" colspan="2">future salary increase assumption<br/>
</td>
</tr>
<tr>
<td><a id="pl.22.6"></a><var>22.6</var><br/>
</td>
<td>legislators retirement plan<br/>
</td>
<td></td>
<td>5.0%<br/>
</td>
</tr>
<tr>
<td><a id="pl.22.7"></a><var>22.7</var><br/>
</td>
<td>judges retirement plan<br/>
</td>
<td></td>
<td>3.0 <br/>
</td>
</tr>
<tr>
<td><a id="pl.22.8"></a><var>22.8</var><br/>
<a id="pl.22.9"></a><var>22.9</var><br/>
</td>
<td>Bloomington Fire Department Relief <br/>
                  		Association<br/>
</td>
<td></td>
<td>4.0<br/>
</td>
</tr>
</table><a id="pl.22.10"></a><var>22.10</var>    (2) age-related future salary increase age-related select and ultimate future salary <br/>
<a id="pl.22.11"></a><var>22.11</var>increase assumption or graded rate future salary increase assumption<br/>
<table>
<col width="50px"/>
<col width="40"/>
<col width="25"/>
<tr>
<td><a id="pl.22.12"></a><var>22.12</var><br/>
</td>
<td align="center">plan<br/>
</td>
<td align="center">future salary increase assumption<br/>
</td>
</tr>
<tr>
<td><a id="pl.22.13"></a><var>22.13</var><br/>
</td>
<td>local government correctional service retirement plan<br/>
</td>
<td align="center">assumption C<br/>
</td>
</tr>
<tr>
<td><a id="pl.22.14"></a><var>22.14</var><br/>
</td>
<td>Duluth teachers retirement plan<br/>
</td>
<td align="center">assumption A<br/>
</td>
</tr>
<tr>
<td><a id="pl.22.15"></a><var>22.15</var><br/>
</td>
<td>St. Paul teachers retirement plan<br/>
</td>
<td align="center">assumption B<br/>
</td>
</tr>
</table><a id="pl.22.16"></a><var>22.16</var>For plans other than the Duluth teachers <br/>
<a id="pl.22.17"></a><var>22.17</var>retirement plan, the select calculation <br/>
<a id="pl.22.18"></a><var>22.18</var>is: during the designated select period, a <br/>
<a id="pl.22.19"></a><var>22.19</var>designated percentage rate is multiplied by <br/>
<a id="pl.22.20"></a><var>22.20</var>the result of the designated integer minus T, <br/>
<a id="pl.22.21"></a><var>22.21</var>where T is the number of completed years <br/>
<a id="pl.22.22"></a><var>22.22</var>of service, and is added to the applicable <br/>
<a id="pl.22.23"></a><var>22.23</var>future salary increase assumption. The <br/>
<a id="pl.22.24"></a><var>22.24</var>designated select period is ten years and the <br/>
<a id="pl.22.25"></a><var>22.25</var>designated integer is ten for all retirement <br/>
<a id="pl.22.26"></a><var>22.26</var>plans covered by this clause. The designated <br/>
<a id="pl.22.27"></a><var>22.27</var>percentage rate is 0.3 percent for the St. Paul <br/>
<a id="pl.22.28"></a><var>22.28</var>Teachers Retirement Fund Association. The <br/>
<a id="pl.22.29"></a><var>22.29</var>select calculation for the Duluth Teachers <br/>
<a id="pl.22.30"></a><var>22.30</var>Retirement Fund Association is 8.00 percent <br/>
<a id="pl.22.31"></a><var>22.31</var>per year for service years one through seven, <br/>
<a id="pl.22.32"></a><var>22.32</var>7.25 percent per year for service years seven <br/>
<a id="pl.22.33"></a><var>22.33</var>and eight, and 6.50 percent per year for <br/>
<a id="pl.22.34"></a><var>22.34</var>service years eight and nine.<br/>
<a id="pl.22.35"></a><var>22.35</var>    The ultimate future salary increase assumption is:<br/>
<table>
<col width="50px"/>
<col width="10"/>
<col width="12.5"/>
<col width="12.5"/>
<col width="15"/>
<col width="15"/>
<tr>
<td><a id="pl.22.36"></a><var>22.36</var><br/>
</td>
<td>age<br/>
</td>
<td>A<br/>
</td>
<td>B<br/>
</td>
<td>C<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.22.37"></a><var>22.37</var><br/>
</td>
<td>16<br/>
</td>
<td>8.00%<br/>
</td>
<td>6.90%<br/>
</td>
<td>9.00%<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.23.1"></a><var>23.1</var><br/>
</td>
<td>17<br/>
</td>
<td>8.00<br/>
</td>
<td>6.90<br/>
</td>
<td>9.00<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.23.2"></a><var>23.2</var><br/>
</td>
<td>18<br/>
</td>
<td>8.00<br/>
</td>
<td>6.90<br/>
</td>
<td>9.00<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.23.3"></a><var>23.3</var><br/>
</td>
<td>19<br/>
</td>
<td>8.00<br/>
</td>
<td>6.90<br/>
</td>
<td>9.00<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.23.4"></a><var>23.4</var><br/>
</td>
<td>20<br/>
</td>
<td>6.90<br/>
</td>
<td>6.90<br/>
</td>
<td>9.00<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.23.5"></a><var>23.5</var><br/>
</td>
<td>21<br/>
</td>
<td>6.90<br/>
</td>
<td>6.90<br/>
</td>
<td>8.75<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.23.6"></a><var>23.6</var><br/>
</td>
<td>22<br/>
</td>
<td>6.90<br/>
</td>
<td>6.90<br/>
</td>
<td>8.50<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.23.7"></a><var>23.7</var><br/>
</td>
<td>23<br/>
</td>
<td>6.85<br/>
</td>
<td>6.85<br/>
</td>
<td>8.25<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.23.8"></a><var>23.8</var><br/>
</td>
<td>24<br/>
</td>
<td>6.80<br/>
</td>
<td>6.80<br/>
</td>
<td>8.00<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.23.9"></a><var>23.9</var><br/>
</td>
<td>25<br/>
</td>
<td>6.75<br/>
</td>
<td>6.75<br/>
</td>
<td>7.75<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.23.10"></a><var>23.10</var><br/>
</td>
<td>26<br/>
</td>
<td>6.70<br/>
</td>
<td>6.70<br/>
</td>
<td>7.50<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.23.11"></a><var>23.11</var><br/>
</td>
<td>27<br/>
</td>
<td>6.65<br/>
</td>
<td>6.65<br/>
</td>
<td>7.25<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.23.12"></a><var>23.12</var><br/>
</td>
<td>28<br/>
</td>
<td>6.60<br/>
</td>
<td>6.60<br/>
</td>
<td>7.00<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.23.13"></a><var>23.13</var><br/>
</td>
<td>29<br/>
</td>
<td>6.55<br/>
</td>
<td>6.55<br/>
</td>
<td>6.75<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.23.14"></a><var>23.14</var><br/>
</td>
<td>30<br/>
</td>
<td>6.50<br/>
</td>
<td>6.50<br/>
</td>
<td>6.75<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.23.15"></a><var>23.15</var><br/>
</td>
<td>31<br/>
</td>
<td>6.45<br/>
</td>
<td>6.45<br/>
</td>
<td>6.50<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.23.16"></a><var>23.16</var><br/>
</td>
<td>32<br/>
</td>
<td>6.40<br/>
</td>
<td>6.40<br/>
</td>
<td>6.50<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.23.17"></a><var>23.17</var><br/>
</td>
<td>33<br/>
</td>
<td>6.35<br/>
</td>
<td>6.35<br/>
</td>
<td>6.50<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.23.18"></a><var>23.18</var><br/>
</td>
<td>34<br/>
</td>
<td>6.30<br/>
</td>
<td>6.30<br/>
</td>
<td>6.25<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.23.19"></a><var>23.19</var><br/>
</td>
<td>35<br/>
</td>
<td>6.25<br/>
</td>
<td>6.25<br/>
</td>
<td>6.25<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.23.20"></a><var>23.20</var><br/>
</td>
<td>36<br/>
</td>
<td>6.20<br/>
</td>
<td>6.20<br/>
</td>
<td>6.00<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.23.21"></a><var>23.21</var><br/>
</td>
<td>37<br/>
</td>
<td>6.15<br/>
</td>
<td>6.15<br/>
</td>
<td>6.00<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.23.22"></a><var>23.22</var><br/>
</td>
<td>38<br/>
</td>
<td>6.10<br/>
</td>
<td>6.10<br/>
</td>
<td>6.00<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.23.23"></a><var>23.23</var><br/>
</td>
<td>39<br/>
</td>
<td>6.05<br/>
</td>
<td>6.05<br/>
</td>
<td>5.75<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.23.24"></a><var>23.24</var><br/>
</td>
<td>40<br/>
</td>
<td>6.00<br/>
</td>
<td>6.00<br/>
</td>
<td>5.75<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.23.25"></a><var>23.25</var><br/>
</td>
<td>41<br/>
</td>
<td>5.90<br/>
</td>
<td>5.95<br/>
</td>
<td>5.75<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.23.26"></a><var>23.26</var><br/>
</td>
<td>42<br/>
</td>
<td>5.80<br/>
</td>
<td>5.90<br/>
</td>
<td>5.50<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.23.27"></a><var>23.27</var><br/>
</td>
<td>43<br/>
</td>
<td>5.70<br/>
</td>
<td>5.85<br/>
</td>
<td>5.25<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.23.28"></a><var>23.28</var><br/>
</td>
<td>44<br/>
</td>
<td>5.60<br/>
</td>
<td>5.80<br/>
</td>
<td>5.25<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.23.29"></a><var>23.29</var><br/>
</td>
<td>45<br/>
</td>
<td>5.50<br/>
</td>
<td>5.75<br/>
</td>
<td>5.00<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.23.30"></a><var>23.30</var><br/>
</td>
<td>46<br/>
</td>
<td>5.40<br/>
</td>
<td>5.70<br/>
</td>
<td>5.00<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.23.31"></a><var>23.31</var><br/>
</td>
<td>47<br/>
</td>
<td>5.30<br/>
</td>
<td>5.65<br/>
</td>
<td>5.00<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.23.32"></a><var>23.32</var><br/>
</td>
<td>48<br/>
</td>
<td>5.20<br/>
</td>
<td>5.60<br/>
</td>
<td>5.00<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.23.33"></a><var>23.33</var><br/>
</td>
<td>49<br/>
</td>
<td>5.10<br/>
</td>
<td>5.55<br/>
</td>
<td>5.00<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.23.34"></a><var>23.34</var><br/>
</td>
<td>50<br/>
</td>
<td>5.00<br/>
</td>
<td>5.50<br/>
</td>
<td>5.00<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.23.35"></a><var>23.35</var><br/>
</td>
<td>51<br/>
</td>
<td>4.90<br/>
</td>
<td>5.45<br/>
</td>
<td>5.00<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.23.36"></a><var>23.36</var><br/>
</td>
<td>52<br/>
</td>
<td>4.80<br/>
</td>
<td>5.40<br/>
</td>
<td>5.00<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.23.37"></a><var>23.37</var><br/>
</td>
<td>53<br/>
</td>
<td>4.70<br/>
</td>
<td>5.35<br/>
</td>
<td>5.00<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.23.38"></a><var>23.38</var><br/>
</td>
<td>54<br/>
</td>
<td>4.60<br/>
</td>
<td>5.30<br/>
</td>
<td>5.00<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.23.39"></a><var>23.39</var><br/>
</td>
<td>55<br/>
</td>
<td>4.50<br/>
</td>
<td>5.25<br/>
</td>
<td>4.75<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.23.40"></a><var>23.40</var><br/>
</td>
<td>56<br/>
</td>
<td>4.40<br/>
</td>
<td>5.20<br/>
</td>
<td>4.75<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.23.41"></a><var>23.41</var><br/>
</td>
<td>57<br/>
</td>
<td>4.30<br/>
</td>
<td>5.15<br/>
</td>
<td>4.50<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.23.42"></a><var>23.42</var><br/>
</td>
<td>58<br/>
</td>
<td>4.20<br/>
</td>
<td>5.10<br/>
</td>
<td>4.25<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.23.43"></a><var>23.43</var><br/>
</td>
<td>59<br/>
</td>
<td>4.10<br/>
</td>
<td>5.05<br/>
</td>
<td>4.25<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.24.1"></a><var>24.1</var><br/>
</td>
<td>60<br/>
</td>
<td>4.00<br/>
</td>
<td>5.00<br/>
</td>
<td>4.25<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.24.2"></a><var>24.2</var><br/>
</td>
<td>61<br/>
</td>
<td>3.90<br/>
</td>
<td>5.00<br/>
</td>
<td>4.25<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.24.3"></a><var>24.3</var><br/>
</td>
<td>62<br/>
</td>
<td>3.80<br/>
</td>
<td>5.00<br/>
</td>
<td>4.25<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.24.4"></a><var>24.4</var><br/>
</td>
<td>63<br/>
</td>
<td>3.70<br/>
</td>
<td>5.00<br/>
</td>
<td>4.25<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.24.5"></a><var>24.5</var><br/>
</td>
<td>64<br/>
</td>
<td>3.60<br/>
</td>
<td>5.00<br/>
</td>
<td>4.25<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.24.6"></a><var>24.6</var><br/>
</td>
<td>65<br/>
</td>
<td>3.50<br/>
</td>
<td>5.00<br/>
</td>
<td>4.00<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.24.7"></a><var>24.7</var><br/>
</td>
<td>66<br/>
</td>
<td>3.50<br/>
</td>
<td>5.00<br/>
</td>
<td>4.00<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.24.8"></a><var>24.8</var><br/>
</td>
<td>67<br/>
</td>
<td>3.50<br/>
</td>
<td>5.00<br/>
</td>
<td>4.00<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.24.9"></a><var>24.9</var><br/>
</td>
<td>68<br/>
</td>
<td>3.50<br/>
</td>
<td>5.00<br/>
</td>
<td>4.00<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.24.10"></a><var>24.10</var><br/>
</td>
<td>69<br/>
</td>
<td>3.50<br/>
</td>
<td>5.00<br/>
</td>
<td>4.00<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.24.11"></a><var>24.11</var><br/>
</td>
<td>70<br/>
</td>
<td>3.50<br/>
</td>
<td>5.00<br/>
</td>
<td>4.00<br/>
</td>
<td></td>
</tr>
</table><a id="pl.24.12"></a><var>24.12</var>(3) service-related ultimate future salary increase assumption<br/>
<table>
<col width="50px"/>
<col width="40"/>
<col width="25"/>
<tr>
<td><a id="pl.24.13"></a><var>24.13</var><br/>
<a id="pl.24.14"></a><var>24.14</var><br/>
</td>
<td>general state employees retirement plan of the <br/>
                  		Minnesota State Retirement System<br/>
</td>
<td align="center">assumption A<br/>
</td>
</tr>
<tr>
<td><a id="pl.24.15"></a><var>24.15</var><br/>
<a id="pl.24.16"></a><var>24.16</var><br/>
</td>
<td>general employees retirement plan of the Public <br/>
                  		Employees Retirement Association<br/>
</td>
<td align="center">assumption B<br/>
</td>
</tr>
<tr>
<td><a id="pl.24.17"></a><var>24.17</var><br/>
</td>
<td>Teachers Retirement Association<br/>
</td>
<td align="center">assumption C<br/>
</td>
</tr>
<tr>
<td><a id="pl.24.18"></a><var>24.18</var><br/>
</td>
<td>public employees police and fire retirement plan<br/>
</td>
<td align="center">assumption D<br/>
</td>
</tr>
<tr>
<td><a id="pl.24.19"></a><var>24.19</var><br/>
</td>
<td>State Patrol retirement plan<br/>
</td>
<td align="center">assumption E<br/>
</td>
</tr>
<tr>
<td><a id="pl.24.20"></a><var>24.20</var><br/>
<a id="pl.24.21"></a><var>24.21</var><br/>
</td>
<td>correctional state employees retirement plan of the <br/>
                  		Minnesota State Retirement System<br/>
</td>
<td align="center">assumption F<br/>
</td>
</tr>
</table>
<table>
<col width="50px"/>
<col width="8.5"/>
<col width="8.5"/>
<col width="8.5"/>
<col width="8.5"/>
<col width="8.5"/>
<col width="8.5"/>
<col width="8.5"/>
<tr>
<td><a id="pl.24.22"></a><var>24.22</var><br/>
<a id="pl.24.23"></a><var>24.23</var><br/>
</td>
<td>service <br/>
                  		length<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>
</tr>
<tr>
<td><a id="pl.24.24"></a><var>24.24</var><br/>
</td>
<td>1<br/>
</td>
<td>10.50%<br/>
</td>
<td>12.03%<br/>
</td>
<td>12.00%<br/>
</td>
<td>13.00%<br/>
</td>
<td>8.00%<br/>
</td>
<td>6.00%<br/>
</td>
</tr>
<tr>
<td><a id="pl.24.25"></a><var>24.25</var><br/>
</td>
<td>2<br/>
</td>
<td>8.10<br/>
</td>
<td>8.90<br/>
</td>
<td>9.00<br/>
</td>
<td>11.00<br/>
</td>
<td>7.50<br/>
</td>
<td>5.85<br/>
</td>
</tr>
<tr>
<td><a id="pl.24.26"></a><var>24.26</var><br/>
</td>
<td>3<br/>
</td>
<td>6.90<br/>
</td>
<td>7.46<br/>
</td>
<td>8.00<br/>
</td>
<td>9.00<br/>
</td>
<td>7.00<br/>
</td>
<td>5.70<br/>
</td>
</tr>
<tr>
<td><a id="pl.24.27"></a><var>24.27</var><br/>
</td>
<td>4<br/>
</td>
<td>6.20<br/>
</td>
<td>6.58<br/>
</td>
<td>7.50<br/>
</td>
<td>8.00<br/>
</td>
<td>6.75<br/>
</td>
<td>5.55<br/>
</td>
</tr>
<tr>
<td><a id="pl.24.28"></a><var>24.28</var><br/>
</td>
<td>5<br/>
</td>
<td>5.70<br/>
</td>
<td>5.97<br/>
</td>
<td>7.25<br/>
</td>
<td>6.50<br/>
</td>
<td>6.50<br/>
</td>
<td>5.40<br/>
</td>
</tr>
<tr>
<td><a id="pl.24.29"></a><var>24.29</var><br/>
</td>
<td>6<br/>
</td>
<td>5.30<br/>
</td>
<td>5.52<br/>
</td>
<td>7.00<br/>
</td>
<td>6.10<br/>
</td>
<td>6.25<br/>
</td>
<td>5.25<br/>
</td>
</tr>
<tr>
<td><a id="pl.24.30"></a><var>24.30</var><br/>
</td>
<td>7<br/>
</td>
<td>5.00<br/>
</td>
<td>5.16<br/>
</td>
<td>6.85<br/>
</td>
<td>5.80<br/>
</td>
<td>6.00<br/>
</td>
<td>5.10<br/>
</td>
</tr>
<tr>
<td><a id="pl.24.31"></a><var>24.31</var><br/>
</td>
<td>8<br/>
</td>
<td>4.70<br/>
</td>
<td>4.87<br/>
</td>
<td>6.70<br/>
</td>
<td>5.60<br/>
</td>
<td>5.85<br/>
</td>
<td>4.95<br/>
</td>
</tr>
<tr>
<td><a id="pl.24.32"></a><var>24.32</var><br/>
</td>
<td>9<br/>
</td>
<td>4.50<br/>
</td>
<td>4.63<br/>
</td>
<td>6.55<br/>
</td>
<td>5.40<br/>
</td>
<td>5.70<br/>
</td>
<td>4.80<br/>
</td>
</tr>
<tr>
<td><a id="pl.24.33"></a><var>24.33</var><br/>
</td>
<td>10<br/>
</td>
<td>4.40<br/>
</td>
<td>4.42<br/>
</td>
<td>6.40<br/>
</td>
<td>5.30<br/>
</td>
<td>5.55<br/>
</td>
<td>4.65<br/>
</td>
</tr>
<tr>
<td><a id="pl.24.34"></a><var>24.34</var><br/>
</td>
<td>11<br/>
</td>
<td>4.20<br/>
</td>
<td>4.24<br/>
</td>
<td>6.25<br/>
</td>
<td>5.20<br/>
</td>
<td>5.40<br/>
</td>
<td>4.55<br/>
</td>
</tr>
<tr>
<td><a id="pl.24.35"></a><var>24.35</var><br/>
</td>
<td>12<br/>
</td>
<td>4.10<br/>
</td>
<td>4.08<br/>
</td>
<td>6.00<br/>
</td>
<td>5.10<br/>
</td>
<td>5.25<br/>
</td>
<td>4.45<br/>
</td>
</tr>
<tr>
<td><a id="pl.24.36"></a><var>24.36</var><br/>
</td>
<td>13<br/>
</td>
<td>4.00<br/>
</td>
<td>3.94<br/>
</td>
<td>5.75<br/>
</td>
<td>5.00<br/>
</td>
<td>5.10<br/>
</td>
<td>4.35<br/>
</td>
</tr>
<tr>
<td><a id="pl.24.37"></a><var>24.37</var><br/>
</td>
<td>14<br/>
</td>
<td>3.80<br/>
</td>
<td>3.82<br/>
</td>
<td>5.50<br/>
</td>
<td>4.90<br/>
</td>
<td>4.95<br/>
</td>
<td>4.25<br/>
</td>
</tr>
<tr>
<td><a id="pl.24.38"></a><var>24.38</var><br/>
</td>
<td>15<br/>
</td>
<td>3.70<br/>
</td>
<td>3.70<br/>
</td>
<td>5.25<br/>
</td>
<td>4.80<br/>
</td>
<td>4.80<br/>
</td>
<td>4.15<br/>
</td>
</tr>
<tr>
<td><a id="pl.24.39"></a><var>24.39</var><br/>
</td>
<td>16<br/>
</td>
<td>3.60<br/>
</td>
<td>3.60<br/>
</td>
<td>5.00<br/>
</td>
<td>4.80<br/>
</td>
<td>4.65<br/>
</td>
<td>4.05<br/>
</td>
</tr>
<tr>
<td><a id="pl.24.40"></a><var>24.40</var><br/>
</td>
<td>17<br/>
</td>
<td>3.50<br/>
</td>
<td>3.51<br/>
</td>
<td>4.75<br/>
</td>
<td>4.80<br/>
</td>
<td>4.50<br/>
</td>
<td>3.95<br/>
</td>
</tr>
<tr>
<td><a id="pl.24.41"></a><var>24.41</var><br/>
</td>
<td>18<br/>
</td>
<td>3.50<br/>
</td>
<td>3.50<br/>
</td>
<td>4.50<br/>
</td>
<td>4.80<br/>
</td>
<td>4.35<br/>
</td>
<td>3.85<br/>
</td>
</tr>
<tr>
<td><a id="pl.24.42"></a><var>24.42</var><br/>
</td>
<td>19<br/>
</td>
<td>3.50<br/>
</td>
<td>3.50<br/>
</td>
<td>4.25<br/>
</td>
<td>4.80<br/>
</td>
<td>4.20<br/>
</td>
<td>3.75<br/>
</td>
</tr>
<tr>
<td><a id="pl.24.43"></a><var>24.43</var><br/>
</td>
<td>20<br/>
</td>
<td>3.50<br/>
</td>
<td>3.50<br/>
</td>
<td>4.00<br/>
</td>
<td>4.80<br/>
</td>
<td>4.05<br/>
</td>
<td>3.75<br/>
</td>
</tr>
<tr>
<td><a id="pl.25.1"></a><var>25.1</var><br/>
</td>
<td>21<br/>
</td>
<td>3.50<br/>
</td>
<td>3.50<br/>
</td>
<td>3.90<br/>
</td>
<td>4.70<br/>
</td>
<td>4.00<br/>
</td>
<td>3.75<br/>
</td>
</tr>
<tr>
<td><a id="pl.25.2"></a><var>25.2</var><br/>
</td>
<td>22<br/>
</td>
<td>3.50<br/>
</td>
<td>3.50<br/>
</td>
<td>3.80<br/>
</td>
<td>4.60<br/>
</td>
<td>4.00<br/>
</td>
<td>3.75<br/>
</td>
</tr>
<tr>
<td><a id="pl.25.3"></a><var>25.3</var><br/>
</td>
<td>23<br/>
</td>
<td>3.50<br/>
</td>
<td>3.50<br/>
</td>
<td>3.70<br/>
</td>
<td>4.50<br/>
</td>
<td>4.00<br/>
</td>
<td>3.75<br/>
</td>
</tr>
<tr>
<td><a id="pl.25.4"></a><var>25.4</var><br/>
</td>
<td>24<br/>
</td>
<td>3.50<br/>
</td>
<td>3.50<br/>
</td>
<td>3.60<br/>
</td>
<td>4.50<br/>
</td>
<td>4.00<br/>
</td>
<td>3.75<br/>
</td>
</tr>
<tr>
<td><a id="pl.25.5"></a><var>25.5</var><br/>
</td>
<td>25<br/>
</td>
<td>3.50<br/>
</td>
<td>3.50<br/>
</td>
<td>3.50<br/>
</td>
<td>4.50<br/>
</td>
<td>4.00<br/>
</td>
<td>3.75<br/>
</td>
</tr>
<tr>
<td><a id="pl.25.6"></a><var>25.6</var><br/>
</td>
<td>26<br/>
</td>
<td>3.50<br/>
</td>
<td>3.50<br/>
</td>
<td>3.50<br/>
</td>
<td>4.50<br/>
</td>
<td>4.00<br/>
</td>
<td>3.75<br/>
</td>
</tr>
<tr>
<td><a id="pl.25.7"></a><var>25.7</var><br/>
</td>
<td>27<br/>
</td>
<td>3.50<br/>
</td>
<td>3.50<br/>
</td>
<td>3.50<br/>
</td>
<td>4.50<br/>
</td>
<td>4.00<br/>
</td>
<td>3.75<br/>
</td>
</tr>
<tr>
<td><a id="pl.25.8"></a><var>25.8</var><br/>
</td>
<td>28<br/>
</td>
<td>3.50<br/>
</td>
<td>3.50<br/>
</td>
<td>3.50<br/>
</td>
<td>4.50<br/>
</td>
<td>4.00<br/>
</td>
<td>3.75<br/>
</td>
</tr>
<tr>
<td><a id="pl.25.9"></a><var>25.9</var><br/>
</td>
<td>29<br/>
</td>
<td>3.50<br/>
</td>
<td>3.50<br/>
</td>
<td>3.50<br/>
</td>
<td>4.50<br/>
</td>
<td>4.00<br/>
</td>
<td>3.75<br/>
</td>
</tr>
<tr>
<td><a id="pl.25.10"></a><var>25.10</var><br/>
</td>
<td>30 or more<br/>
</td>
<td>3.50<br/>
</td>
<td>3.50<br/>
</td>
<td>3.50<br/>
</td>
<td>4.50<br/>
</td>
<td>4.00<br/>
</td>
<td>3.75<br/>
</td>
</tr>
</table><a id="pl.25.11"></a><var>25.11</var>    (c) The actuarial valuation must use the applicable following payroll growth <br/>
<a id="pl.25.12"></a><var>25.12</var>assumption for calculating the amortization requirement for the unfunded actuarial <br/>
<a id="pl.25.13"></a><var>25.13</var>accrued liability where the amortization retirement is calculated as a level percentage <br/>
<a id="pl.25.14"></a><var>25.14</var>of an increasing payroll:<br/>
<table>
<col width="50px"/>
<col width="40"/>
<col width="25"/>
<tr>
<td><a id="pl.25.15"></a><var>25.15</var><br/>
</td>
<td align="center">plan<br/>
</td>
<td align="center">payroll growth assumption<br/>
</td>
</tr>
<tr>
<td><a id="pl.25.16"></a><var>25.16</var><br/>
<a id="pl.25.17"></a><var>25.17</var><br/>
</td>
<td>general state employees retirement plan of the <br/>
                  		Minnesota State Retirement System<br/>
</td>
<td align="center">3.75%<br/>
</td>
</tr>
<tr>
<td><a id="pl.25.18"></a><var>25.18</var><br/>
</td>
<td>correctional state employees retirement plan<br/>
</td>
<td align="center">3.75<br/>
</td>
</tr>
<tr>
<td><a id="pl.25.19"></a><var>25.19</var><br/>
</td>
<td>State Patrol retirement plan<br/>
</td>
<td align="center">3.75<br/>
</td>
</tr>
<tr>
<td><a id="pl.25.20"></a><var>25.20</var><br/>
</td>
<td>judges retirement plan<br/>
</td>
<td align="center">3.00<br/>
</td>
</tr>
<tr>
<td><a id="pl.25.21"></a><var>25.21</var><br/>
<a id="pl.25.22"></a><var>25.22</var><br/>
</td>
<td>general employees retirement plan of the Public <br/>
                  		Employees Retirement Association<br/>
</td>
<td align="center">3.75<br/>
</td>
</tr>
<tr>
<td><a id="pl.25.23"></a><var>25.23</var><br/>
</td>
<td>public employees police and fire retirement plan<br/>
</td>
<td align="center">3.75<br/>
</td>
</tr>
<tr>
<td><a id="pl.25.24"></a><var>25.24</var><br/>
</td>
<td>local government correctional service retirement plan<br/>
</td>
<td align="center">3.75<br/>
</td>
</tr>
<tr>
<td><a id="pl.25.25"></a><var>25.25</var><br/>
</td>
<td>teachers retirement plan<br/>
</td>
<td align="center">3.75<br/>
</td>
</tr>
<tr>
<td><a id="pl.25.26"></a><var>25.26</var><br/>
</td>
<td>Duluth teachers retirement plan<br/>
</td>
<td align="center">4.50<br/>
</td>
</tr>
<tr>
<td><a id="pl.25.27"></a><var>25.27</var><br/>
</td>
<td>St. Paul teachers retirement plan<br/>
</td>
<td align="center">5.00<br/>
</td>
</tr>
</table><a id="pl.25.28"></a><var>25.28</var>    (d) The assumptions set forth in paragraphs (b) and (c) continue to apply, unless a <br/>
<a id="pl.25.29"></a><var>25.29</var>different salary assumption or a different payroll increase assumption:<br/>
<a id="pl.25.30"></a><var>25.30</var>    (1) has been proposed by the governing board of the applicable retirement plan;<br/>
<a id="pl.25.31"></a><var>25.31</var>    (2) is accompanied by the concurring recommendation of the actuary retained under <br/>
<a id="pl.25.32"></a><var>25.32</var>section 
         <statute_ref>356.214, subdivision 1</statute_ref>, if applicable, or by the approved actuary preparing the <br/>
<a id="pl.25.33"></a><var>25.33</var>most recent actuarial valuation report if section 
         <statute_ref>356.214</statute_ref> does not apply; and<br/>
<a id="pl.25.34"></a><var>25.34</var>    (3) has been approved or deemed approved under subdivision 18.<br/>
<a id="pl.25.35"></a><var>25.35</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2013.<br/>
<br/>
<a id="bill.2.28.0"></a><a id="pl.25.36"></a><var>25.36</var>    Sec. 28. Minnesota Statutes 2012, section 356.30, subdivision 3, is amended to read:<br/>
<a id="pl.25.37"></a><var>25.37</var>    Subd. 3. <b>Covered plans.</b> This section applies to the following retirement plans:<br/>
<a id="pl.26.1"></a><var>26.1</var>(1) the general state employees retirement plan of the Minnesota State Retirement <br/>
<a id="pl.26.2"></a><var>26.2</var>System, established under chapter 352;<br/>
<a id="pl.26.3"></a><var>26.3</var>(2) the correctional state employees retirement plan of the Minnesota State <br/>
<a id="pl.26.4"></a><var>26.4</var>Retirement System, established under chapter 352;<br/>
<a id="pl.26.5"></a><var>26.5</var>(3) the unclassified employees retirement program, established under chapter 352D;<br/>
<a id="pl.26.6"></a><var>26.6</var>(4) the State Patrol retirement plan, established under chapter 352B;<br/>
<a id="pl.26.7"></a><var>26.7</var>(5) the legislators retirement plan, established under chapter 3A, including <br/>
<a id="pl.26.8"></a><var>26.8</var>constitutional officers as specified in that chapter;<br/>
<a id="pl.26.9"></a><var>26.9</var>(6) the elective state officers retirement plan, established under chapter 352C;<br/>
<a id="pl.26.10"></a><var>26.10</var>(7) (6) the general employees retirement plan of the Public Employees Retirement <br/>
<a id="pl.26.11"></a><var>26.11</var>Association, established under chapter 353, including the MERF division of the Public <br/>
<a id="pl.26.12"></a><var>26.12</var>Employees Retirement Association;<br/>
<a id="pl.26.13"></a><var>26.13</var>(8) (7) the public employees police and fire retirement plan of the Public Employees <br/>
<a id="pl.26.14"></a><var>26.14</var>Retirement Association, established under chapter 353;<br/>
<a id="pl.26.15"></a><var>26.15</var>(9) (8) the local government correctional service retirement plan of the Public <br/>
<a id="pl.26.16"></a><var>26.16</var>Employees Retirement Association, established under chapter 353E;<br/>
<a id="pl.26.17"></a><var>26.17</var>(10) (9) the Teachers Retirement Association, established under chapter 354;<br/>
<a id="pl.26.18"></a><var>26.18</var>(11) (10) the St. Paul Teachers Retirement Fund Association, established under <br/>
<a id="pl.26.19"></a><var>26.19</var>chapter 354A;<br/>
<a id="pl.26.20"></a><var>26.20</var>(12) (11) the Duluth Teachers Retirement Fund Association, established under <br/>
<a id="pl.26.21"></a><var>26.21</var>chapter 354A; and<br/>
<a id="pl.26.22"></a><var>26.22</var>(13) (12) the judges retirement fund, established by chapter 490.<br/>
<a id="pl.26.23"></a><var>26.23</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2013.<br/>
<br/>
<a id="bill.2.29.0"></a><a id="pl.26.24"></a><var>26.24</var>    Sec. 29. Minnesota Statutes 2012, section 356.401, subdivision 3, is amended to read:<br/>
<a id="pl.26.25"></a><var>26.25</var>    Subd. 3. <b>Covered retirement plans.</b> The provisions of this section apply to the <br/>
<a id="pl.26.26"></a><var>26.26</var>following retirement plans:<br/>
<a id="pl.26.27"></a><var>26.27</var>(1) the legislators retirement plan, established by chapter 3A, including constitutional <br/>
<a id="pl.26.28"></a><var>26.28</var>officers as specified in that chapter;<br/>
<a id="pl.26.29"></a><var>26.29</var>(2) the general state employees retirement plan of the Minnesota State Retirement <br/>
<a id="pl.26.30"></a><var>26.30</var>System, established by chapter 352;<br/>
<a id="pl.26.31"></a><var>26.31</var>(3) the correctional state employees retirement plan of the Minnesota State <br/>
<a id="pl.26.32"></a><var>26.32</var>Retirement System, established by chapter 352;<br/>
<a id="pl.26.33"></a><var>26.33</var>(4) the State Patrol retirement plan, established by chapter 352B;<br/>
<a id="pl.26.34"></a><var>26.34</var>(5) the elective state officers retirement plan, established by chapter 352C;<br/>
<a id="pl.27.1"></a><var>27.1</var>(6) (5) the unclassified state employees retirement program, established by chapter <br/>
<a id="pl.27.2"></a><var>27.2</var>352D;<br/>
<a id="pl.27.3"></a><var>27.3</var>(7) (6) the general employees retirement plan of the Public Employees Retirement <br/>
<a id="pl.27.4"></a><var>27.4</var>Association, established by chapter 353, including the MERF division of the Public <br/>
<a id="pl.27.5"></a><var>27.5</var>Employees Retirement Association;<br/>
<a id="pl.27.6"></a><var>27.6</var>(8) (7) the public employees police and fire plan of the Public Employees Retirement <br/>
<a id="pl.27.7"></a><var>27.7</var>Association, established by chapter 353;<br/>
<a id="pl.27.8"></a><var>27.8</var>(9) (8) the public employees defined contribution plan, established by chapter 353D;<br/>
<a id="pl.27.9"></a><var>27.9</var>(10) (9) the local government correctional service retirement plan of the Public <br/>
<a id="pl.27.10"></a><var>27.10</var>Employees Retirement Association, established by chapter 353E;<br/>
<a id="pl.27.11"></a><var>27.11</var>(11) (10) the voluntary statewide lump-sum volunteer firefighter retirement plan, <br/>
<a id="pl.27.12"></a><var>27.12</var>established by chapter 353G;<br/>
<a id="pl.27.13"></a><var>27.13</var>(12) (11) the Teachers Retirement Association, established by chapter 354;<br/>
<a id="pl.27.14"></a><var>27.14</var>(13) (12) the Duluth Teachers Retirement Fund Association, established by chapter <br/>
<a id="pl.27.15"></a><var>27.15</var>354A;<br/>
<a id="pl.27.16"></a><var>27.16</var>(14) (13) the St. Paul Teachers Retirement Fund Association, established by chapter <br/>
<a id="pl.27.17"></a><var>27.17</var>354A;<br/>
<a id="pl.27.18"></a><var>27.18</var>(15) (14) the individual retirement account plan, established by chapter 354B;<br/>
<a id="pl.27.19"></a><var>27.19</var>(16) (15) the higher education supplemental retirement plan, established by chapter <br/>
<a id="pl.27.20"></a><var>27.20</var>354C; and<br/>
<a id="pl.27.21"></a><var>27.21</var>(17) (16) the judges retirement fund, established by chapter 490.<br/>
<a id="pl.27.22"></a><var>27.22</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2013.<br/>
<br/>
<a id="bill.2.30.0"></a><a id="pl.27.23"></a><var>27.23</var>    Sec. 30. Minnesota Statutes 2012, section 356.415, subdivision 1a, is amended to read:<br/>
<a id="pl.27.24"></a><var>27.24</var>    Subd. 1a. <b>Annual postretirement adjustments; Minnesota State Retirement </b><br/>
<a id="pl.27.25"></a><var>27.25</var><b>System plans other than State Patrol retirement plan.</b> (a) Retirement annuity, disability <br/>
<a id="pl.27.26"></a><var>27.26</var>benefit, or survivor benefit recipients of the legislators retirement plan plans, including <br/>
<a id="pl.27.27"></a><var>27.27</var>constitutional officers as specified in chapter 3A, the general state employees retirement <br/>
<a id="pl.27.28"></a><var>27.28</var>plan, the correctional state employees retirement plan, the elected state officers retirement <br/>
<a id="pl.27.29"></a><var>27.29</var>plan, the unclassified state employees retirement program, and the judges retirement plan <br/>
<a id="pl.27.30"></a><var>27.30</var>are entitled to a postretirement adjustment annually on January 1, as follows:<br/>
<a id="pl.27.31"></a><var>27.31</var>(1) a postretirement increase of two percent must be applied each year, effective <br/>
<a id="pl.27.32"></a><var>27.32</var>on January 1, to the monthly annuity or benefit of each annuitant or benefit recipient <br/>
<a id="pl.27.33"></a><var>27.33</var>who has been receiving an annuity or a benefit for at least 18 full months before the <br/>
<a id="pl.27.34"></a><var>27.34</var>January 1 increase; and<br/>
<a id="pl.28.1"></a><var>28.1</var>(2) for each annuitant or benefit recipient who has been receiving an annuity or <br/>
<a id="pl.28.2"></a><var>28.2</var>a benefit for at least six full months, an annual postretirement increase of 1/12 of two <br/>
<a id="pl.28.3"></a><var>28.3</var>percent for each month that the person has been receiving an annuity or benefit must be <br/>
<a id="pl.28.4"></a><var>28.4</var>applied, effective January 1, following the calendar year in which the person has been <br/>
<a id="pl.28.5"></a><var>28.5</var>retired for at least six months, but has been retired for less than 18 months.<br/>
<a id="pl.28.6"></a><var>28.6</var>(b) The increases provided by this subdivision commence on January 1, 2011. <br/>
<a id="pl.28.7"></a><var>28.7</var>Increases under this subdivision for the general state employees retirement plan, the <br/>
<a id="pl.28.8"></a><var>28.8</var>correctional state employees retirement plan, or the judges retirement plan terminate <br/>
<a id="pl.28.9"></a><var>28.9</var>on December 31 of the calendar year in which the actuarial valuation prepared by the <br/>
<a id="pl.28.10"></a><var>28.10</var>approved actuary under sections 
         <statute_ref>356.214</statute_ref> and 
         <statute_ref>356.215</statute_ref> and the standards for actuarial work <br/>
<a id="pl.28.11"></a><var>28.11</var>promulgated by the Legislative Commission on Pensions and Retirement indicates that the <br/>
<a id="pl.28.12"></a><var>28.12</var>market value of assets of the retirement plan equals or exceeds 90 percent of the actuarial <br/>
<a id="pl.28.13"></a><var>28.13</var>accrued liability of the retirement plan and increases under subdivision 1 recommence <br/>
<a id="pl.28.14"></a><var>28.14</var>after that date. Increases under this subdivision for the legislators retirement plan or the <br/>
<a id="pl.28.15"></a><var>28.15</var>elected state officers retirement plan terminate on December 31 of the calendar year in <br/>
<a id="pl.28.16"></a><var>28.16</var>which the actuarial valuation prepared by the approved actuary under sections 
         <statute_ref>356.214</statute_ref> and <br/>
<statute_ref><a id="pl.28.17"></a><var>28.17</var>356.215
         </statute_ref> and the standards for actuarial work promulgated by the Legislative Commission <br/>
<a id="pl.28.18"></a><var>28.18</var>on Pensions and Retirement indicates that the market value of assets of the general state <br/>
<a id="pl.28.19"></a><var>28.19</var>employees retirement plan equals or exceeds 90 percent of the actuarial accrued liability <br/>
<a id="pl.28.20"></a><var>28.20</var>of the retirement plan and increases under subdivision 1 recommence after that date.<br/>
<a id="pl.28.21"></a><var>28.21</var>(c) An increase in annuity or benefit payments under this subdivision must be made <br/>
<a id="pl.28.22"></a><var>28.22</var>automatically unless written notice is filed by the annuitant or benefit recipient with the <br/>
<a id="pl.28.23"></a><var>28.23</var>executive director of the applicable covered retirement plan requesting that the increase <br/>
<a id="pl.28.24"></a><var>28.24</var>not be made.<br/>
<a id="pl.28.25"></a><var>28.25</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2013.<br/>
<br/>
<a id="bill.2.31.0"></a><a id="pl.28.26"></a><var>28.26</var>    Sec. 31. Minnesota Statutes 2012, section 356.415, subdivision 2, is amended to read:<br/>
<a id="pl.28.27"></a><var>28.27</var>    Subd. 2. <b>Covered retirement plans.</b> The provisions of this section apply to the <br/>
<a id="pl.28.28"></a><var>28.28</var>following retirement plans:<br/>
<a id="pl.28.29"></a><var>28.29</var>(1) the legislators retirement plan established under chapter 3A, including <br/>
<a id="pl.28.30"></a><var>28.30</var>constitutional officers as specified in that chapter;<br/>
<a id="pl.28.31"></a><var>28.31</var>(2) the correctional state employees retirement plan of the Minnesota State <br/>
<a id="pl.28.32"></a><var>28.32</var>Retirement System established under chapter 352;<br/>
<a id="pl.28.33"></a><var>28.33</var>(3) the general state employees retirement plan of the Minnesota State Retirement <br/>
<a id="pl.28.34"></a><var>28.34</var>System established under chapter 352;<br/>
<a id="pl.28.35"></a><var>28.35</var>(4) the State Patrol retirement plan established under chapter 352B;<br/>
<a id="pl.29.1"></a><var>29.1</var>(5) the elective state officers retirement plan established under chapter 352C;<br/>
<a id="pl.29.2"></a><var>29.2</var>(6) (5) the general employees retirement plan of the Public Employees Retirement <br/>
<a id="pl.29.3"></a><var>29.3</var>Association established under chapter 353, including the MERF division of the Public <br/>
<a id="pl.29.4"></a><var>29.4</var>Employees Retirement Association;<br/>
<a id="pl.29.5"></a><var>29.5</var>(7) (6) the public employees police and fire retirement plan of the Public Employees <br/>
<a id="pl.29.6"></a><var>29.6</var>Retirement Association established under chapter 353;<br/>
<a id="pl.29.7"></a><var>29.7</var>(8) (7) the local government correctional employees retirement plan of the Public <br/>
<a id="pl.29.8"></a><var>29.8</var>Employees Retirement Association established under chapter 353E;<br/>
<a id="pl.29.9"></a><var>29.9</var>(9) (8) the teachers retirement plan established under chapter 354; and<br/>
<a id="pl.29.10"></a><var>29.10</var>(10) (9) the judges retirement plan established under chapter 490.<br/>
<a id="pl.29.11"></a><var>29.11</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2013.<br/>
<br/>
<a id="bill.2.32.0"></a><a id="pl.29.12"></a><var>29.12</var>    Sec. 32. <b>APPLICATION AND INTENT.</b><br/>
<a id="pl.29.13"></a><var>29.13</var>Sections 2 to 8 and 25 to 31 merge the remaining provisions of the elective <br/>
<a id="pl.29.14"></a><var>29.14</var>state officers retirement plan into the legislators retirement plan chapter to achieve <br/>
<a id="pl.29.15"></a><var>29.15</var>administrative savings, including reduced cost for actuarial calculations. Nothing in those <br/>
<a id="pl.29.16"></a><var>29.16</var>sections should be interpreted as modifying benefits or benefit eligibility compared to law <br/>
<a id="pl.29.17"></a><var>29.17</var>in effect immediately before the effective date of this section.<br/>
<a id="pl.29.18"></a><var>29.18</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2013.<br/>
<br/>
<a id="bill.2.33.0"></a><a id="pl.29.19"></a><var>29.19</var>    Sec. 33. <b> REPEALER.</b><br/>
<a id="pl.29.20"></a><var>29.20</var>(a) Minnesota Statutes 2012, sections 3A.02, subdivision 3; 352C.001; 352C.091, <br/>
<a id="pl.29.21"></a><var>29.21</var>subdivision 1; and 352C.10, are repealed.<br/>
<a id="pl.29.22"></a><var>29.22</var>(b) Minnesota Statutes 2012, sections 352.045, subdivisions 3 and 4; and 352.955, <br/>
<a id="pl.29.23"></a><var>29.23</var>subdivision 2, are repealed.<br/>
<a id="pl.29.24"></a><var>29.24</var><b>EFFECTIVE DATE.</b>Paragraph (a) is effective July 1, 2013. Paragraph (b) is <br/>
<a id="pl.29.25"></a><var>29.25</var>effective the day following final enactment.<br/>
<br/>
<a id="bill.3.0.0"></a>

<a id="bill.3.1.0"></a><a id="pl.29.28"></a><var>29.28</var>    Section 1. Minnesota Statutes 2012, section 353.01, subdivision 2b, is amended to read:<br/>
<a id="pl.29.29"></a><var>29.29</var>    Subd. 2b. <b>Excluded employees.</b> (a) The following public employees are not eligible <br/>
<a id="pl.29.30"></a><var>29.30</var>to participate as members of the association with retirement coverage by the general <br/>
<a id="pl.30.1"></a><var>30.1</var>employees retirement plan, the local government correctional employees retirement plan <br/>
<a id="pl.30.2"></a><var>30.2</var>under chapter 353E, or the public employees police and fire retirement plan:<br/>
<a id="pl.30.3"></a><var>30.3</var>    (1) persons whose salary from one governmental subdivision never exceeds $425 in <br/>
<a id="pl.30.4"></a><var>30.4</var>a month;<br/>
<a id="pl.30.5"></a><var>30.5</var>(2) public officers who are elected to a governing body, city mayors, or persons who <br/>
<a id="pl.30.6"></a><var>30.6</var>are appointed to fill a vacancy in an elective office of a governing body, whose term of office <br/>
<a id="pl.30.7"></a><var>30.7</var>commences on or after July 1, 2002, for the service to be rendered in that elective position;<br/>
<a id="pl.30.8"></a><var>30.8</var>    (3) election officers or election judges;<br/>
<a id="pl.30.9"></a><var>30.9</var>    (4) patient and inmate personnel who perform services for a governmental <br/>
<a id="pl.30.10"></a><var>30.10</var>subdivision;<br/>
<a id="pl.30.11"></a><var>30.11</var>    (5) except as otherwise specified in subdivision 12a, employees who are hired for <br/>
<a id="pl.30.12"></a><var>30.12</var>a temporary position as defined under subdivision 12a, and employees who resign from <br/>
<a id="pl.30.13"></a><var>30.13</var>a nontemporary position and accept a temporary position within 30 days in the same <br/>
<a id="pl.30.14"></a><var>30.14</var>governmental subdivision;<br/>
<a id="pl.30.15"></a><var>30.15</var>    (6) employees who are employed by reason of work emergency caused by fire, <br/>
<a id="pl.30.16"></a><var>30.16</var>flood, storm, or similar disaster;<br/>
<a id="pl.30.17"></a><var>30.17</var>    (7) employees who by virtue of their employment in one governmental subdivision <br/>
<a id="pl.30.18"></a><var>30.18</var>are required by law to be a member of and to contribute to any of the plans or funds <br/>
<a id="pl.30.19"></a><var>30.19</var>administered by the Minnesota State Retirement System, the Teachers Retirement <br/>
<a id="pl.30.20"></a><var>30.20</var>Association, the Duluth Teachers Retirement Fund Association, the St. Paul Teachers <br/>
<a id="pl.30.21"></a><var>30.21</var>Retirement Fund Association, or any police or firefighters relief association governed by <br/>
<a id="pl.30.22"></a><var>30.22</var>section 
         <statute_ref>69.77</statute_ref> that has not consolidated with the Public Employees Retirement Association, <br/>
<a id="pl.30.23"></a><var>30.23</var>or any local police or firefighters consolidation account who have not elected the type of <br/>
<a id="pl.30.24"></a><var>30.24</var>benefit coverage provided by the public employees police and fire fund under sections <br/>
<statute_ref><a id="pl.30.25"></a><var>30.25</var>353A.01
         </statute_ref> to 
         <statute_ref>353A.10</statute_ref>, or any persons covered by section 
         <statute_ref>353.665, subdivision 4</statute_ref>, 5, or 6, <br/>
<a id="pl.30.26"></a><var>30.26</var>who have not elected public employees police and fire plan benefit coverage. This clause <br/>
<a id="pl.30.27"></a><var>30.27</var>must not be construed to prevent a person from being a member of and contributing to <br/>
<a id="pl.30.28"></a><var>30.28</var>the Public Employees Retirement Association and also belonging to and contributing to <br/>
<a id="pl.30.29"></a><var>30.29</var>another public pension plan or fund for other service occurring during the same period <br/>
<a id="pl.30.30"></a><var>30.30</var>of time. A person who meets the definition of "public employee" in subdivision 2 by <br/>
<a id="pl.30.31"></a><var>30.31</var>virtue of other service occurring during the same period of time becomes a member of the <br/>
<a id="pl.30.32"></a><var>30.32</var>association unless contributions are made to another public retirement fund on the salary <br/>
<a id="pl.30.33"></a><var>30.33</var>based on the other service or to the Teachers Retirement Association by a teacher as <br/>
<a id="pl.30.34"></a><var>30.34</var>defined in section 
         <statute_ref>354.05, subdivision 2</statute_ref>;<br/>
<a id="pl.30.35"></a><var>30.35</var>    (8) persons who are members of a religious order and are excluded from coverage <br/>
<a id="pl.30.36"></a><var>30.36</var>under the federal Old Age, Survivors, Disability, and Health Insurance Program for the <br/>
<a id="pl.31.1"></a><var>31.1</var>performance of service as specified in United States Code, title 42, section 410(a)(8)(A), <br/>
<a id="pl.31.2"></a><var>31.2</var>as amended through January 1, 1987, if no irrevocable election of coverage has been made <br/>
<a id="pl.31.3"></a><var>31.3</var>under section 3121(r) of the Internal Revenue Code of 1954, as amended;<br/>
<a id="pl.31.4"></a><var>31.4</var>    (9) employees of a governmental subdivision who have not reached the age of <br/>
<a id="pl.31.5"></a><var>31.5</var>23 and are enrolled on a full-time basis to attend or are attending classes on a full-time <br/>
<a id="pl.31.6"></a><var>31.6</var>basis at an accredited school, college, or university in an undergraduate, graduate, or <br/>
<a id="pl.31.7"></a><var>31.7</var>professional-technical program, or a public or charter high school;<br/>
<a id="pl.31.8"></a><var>31.8</var>    (10) resident physicians, medical interns, and pharmacist residents and pharmacist <br/>
<a id="pl.31.9"></a><var>31.9</var>interns who are serving in a degree or residency program in public hospitals or clinics;<br/>
<a id="pl.31.10"></a><var>31.10</var>    (11) students who are serving for up to five years in an internship or residency program <br/>
<a id="pl.31.11"></a><var>31.11</var>sponsored by a governmental subdivision, including an accredited educational institution;<br/>
<a id="pl.31.12"></a><var>31.12</var>    (12) persons who hold a part-time adult supplementary technical college license who <br/>
<a id="pl.31.13"></a><var>31.13</var>render part-time teaching service in a technical college;<br/>
<a id="pl.31.14"></a><var>31.14</var>    (13) except for employees of Hennepin County or Hennepin Healthcare System, Inc., <br/>
<a id="pl.31.15"></a><var>31.15</var>foreign citizens who are employed by a governmental subdivision under a work permit, or <br/>
<a id="pl.31.16"></a><var>31.16</var>an H-1b visa initially issued or extended for a combined period less than three years of <br/>
<a id="pl.31.17"></a><var>31.17</var>employment. Upon extension of the employment beyond the three-year period, the foreign <br/>
<a id="pl.31.18"></a><var>31.18</var>citizens must be reported for membership beginning the first of the month thereafter <br/>
<a id="pl.31.19"></a><var>31.19</var>provided the monthly earnings threshold as provided under subdivision 2a is met;<br/>
<a id="pl.31.20"></a><var>31.20</var>    (14) public hospital employees who elected not to participate as members of the <br/>
<a id="pl.31.21"></a><var>31.21</var>association before 1972 and who did not elect to participate from July 1, 1988, to October <br/>
<a id="pl.31.22"></a><var>31.22</var>1, 1988;<br/>
<a id="pl.31.23"></a><var>31.23</var>    (15) except as provided in section 
         <statute_ref>353.86</statute_ref>, volunteer ambulance service personnel, as <br/>
<a id="pl.31.24"></a><var>31.24</var>defined in subdivision 35, but persons who serve as volunteer ambulance service personnel <br/>
<a id="pl.31.25"></a><var>31.25</var>may still qualify as public employees under subdivision 2 and may be members of the <br/>
<a id="pl.31.26"></a><var>31.26</var>Public Employees Retirement Association and participants in the general employees <br/>
<a id="pl.31.27"></a><var>31.27</var>retirement plan or the public employees police and fire plan, whichever applies, on the <br/>
<a id="pl.31.28"></a><var>31.28</var>basis of compensation received from public employment service other than service as <br/>
<a id="pl.31.29"></a><var>31.29</var>volunteer ambulance service personnel;<br/>
<a id="pl.31.30"></a><var>31.30</var>    (16) except as provided in section 
         <statute_ref>353.87</statute_ref>, volunteer firefighters, as defined in <br/>
<a id="pl.31.31"></a><var>31.31</var>subdivision 36, engaging in activities undertaken as part of volunteer firefighter duties, <br/>
<a id="pl.31.32"></a><var>31.32</var>but a person who is a volunteer firefighter may still qualify as a public employee under <br/>
<a id="pl.31.33"></a><var>31.33</var>subdivision 2 and may be a member of the Public Employees Retirement Association and <br/>
<a id="pl.31.34"></a><var>31.34</var>a participant in the general employees retirement plan or the public employees police <br/>
<a id="pl.31.35"></a><var>31.35</var>and fire plan, whichever applies, on the basis of compensation received from public <br/>
<a id="pl.31.36"></a><var>31.36</var>employment activities other than those as a volunteer firefighter;<br/>
<a id="pl.32.1"></a><var>32.1</var>    (17) pipefitters and associated trades personnel employed by Independent School <br/>
<a id="pl.32.2"></a><var>32.2</var>District No. 625, St. Paul, with coverage under a collective bargaining agreement by the <br/>
<a id="pl.32.3"></a><var>32.3</var>pipefitters local 455 pension plan who were either first employed after May 1, 1997, or, <br/>
<a id="pl.32.4"></a><var>32.4</var>if first employed before May 2, 1997, elected to be excluded under Laws 1997, chapter <br/>
<a id="pl.32.5"></a><var>32.5</var>241, article 2, section 12;<br/>
<a id="pl.32.6"></a><var>32.6</var>    (18) electrical workers, plumbers, carpenters, and associated trades personnel who <br/>
<a id="pl.32.7"></a><var>32.7</var>are employed by Independent School District No. 625, St. Paul, or the city of St. Paul, <br/>
<a id="pl.32.8"></a><var>32.8</var>who have retirement coverage under a collective bargaining agreement by the Electrical <br/>
<a id="pl.32.9"></a><var>32.9</var>Workers Local 110 pension plan, the United Association Plumbers Local 34 pension plan, <br/>
<a id="pl.32.10"></a><var>32.10</var>or the pension plan applicable to Carpenters Local 87 who were either first employed after <br/>
<a id="pl.32.11"></a><var>32.11</var>May 1, 2000, or, if first employed before May 2, 2000, elected to be excluded under <br/>
<a id="pl.32.12"></a><var>32.12</var>Laws 2000, chapter 461, article 7, section 5;<br/>
<a id="pl.32.13"></a><var>32.13</var>    (19) bricklayers, allied craftworkers, cement masons, glaziers, glassworkers, <br/>
<a id="pl.32.14"></a><var>32.14</var>painters, allied tradesworkers, and plasterers who are employed by the city of St. Paul <br/>
<a id="pl.32.15"></a><var>32.15</var>or Independent School District No. 625, St. Paul, with coverage under a collective <br/>
<a id="pl.32.16"></a><var>32.16</var>bargaining agreement by the Bricklayers and Allied Craftworkers Local 1 pension plan, <br/>
<a id="pl.32.17"></a><var>32.17</var>the Cement Masons Local 633 pension plan, the Glaziers and Glassworkers Local L-1324 <br/>
<a id="pl.32.18"></a><var>32.18</var>pension plan, the Painters and Allied Trades Local 61 pension plan, or the Twin Cities <br/>
<a id="pl.32.19"></a><var>32.19</var>Plasterers Local 265 pension plan who were either first employed after May 1, 2001, or if <br/>
<a id="pl.32.20"></a><var>32.20</var>first employed before May 2, 2001, elected to be excluded under Laws 2001, First Special <br/>
<a id="pl.32.21"></a><var>32.21</var>Session chapter 10, article 10, section 6;<br/>
<a id="pl.32.22"></a><var>32.22</var>    (20) plumbers who are employed by the Metropolitan Airports Commission, with <br/>
<a id="pl.32.23"></a><var>32.23</var>coverage under a collective bargaining agreement by the Plumbers Local 34 pension plan, <br/>
<a id="pl.32.24"></a><var>32.24</var>who either were first employed after May 1, 2001, or if first employed before May 2, <br/>
<a id="pl.32.25"></a><var>32.25</var>2001, elected to be excluded under Laws 2001, First Special Session chapter 10, article <br/>
<a id="pl.32.26"></a><var>32.26</var>10, section 6;<br/>
<a id="pl.32.27"></a><var>32.27</var>    (21) employees who are hired after June 30, 2002, to fill seasonal positions under <br/>
<a id="pl.32.28"></a><var>32.28</var>subdivision 12b which are limited in duration by the employer to 185 consecutive calendar <br/>
<a id="pl.32.29"></a><var>32.29</var>days or less in each year of employment with the governmental subdivision;<br/>
<a id="pl.32.30"></a><var>32.30</var>    (22) persons who are provided supported employment or work-study positions by a <br/>
<a id="pl.32.31"></a><var>32.31</var>governmental subdivision and who participate in an employment or industries program <br/>
<a id="pl.32.32"></a><var>32.32</var>maintained for the benefit of these persons where the governmental subdivision limits <br/>
<a id="pl.32.33"></a><var>32.33</var>the position's duration up to three five years or less, including persons participating in a <br/>
<a id="pl.32.34"></a><var>32.34</var>federal or state subsidized on-the-job training, work experience, senior citizen, youth, or <br/>
<a id="pl.32.35"></a><var>32.35</var>unemployment relief program where the training or work experience is not provided as a <br/>
<a id="pl.32.36"></a><var>32.36</var>part of, or for, future permanent public employment;<br/>
<a id="pl.33.1"></a><var>33.1</var>    (23) independent contractors and the employees of independent contractors;<br/>
<a id="pl.33.2"></a><var>33.2</var>    (24) reemployed annuitants of the association during the course of that <br/>
<a id="pl.33.3"></a><var>33.3</var>reemployment; and<br/>
<a id="pl.33.4"></a><var>33.4</var>(25) persons appointed to serve on a board or commission of a governmental <br/>
<a id="pl.33.5"></a><var>33.5</var>subdivision or an instrumentality thereof.<br/>
<a id="pl.33.6"></a><var>33.6</var>(b) Any person performing the duties of a public officer in a position defined in <br/>
<a id="pl.33.7"></a><var>33.7</var>subdivision 2a, paragraph (a), clause (3), is not an independent contractor and is not an <br/>
<a id="pl.33.8"></a><var>33.8</var>employee of an independent contractor.<br/>
<a id="pl.33.9"></a><var>33.9</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.3.2.0"></a><a id="pl.33.10"></a><var>33.10</var>    Sec. 2. Minnesota Statutes 2012, section 353.01, subdivision 16, is amended to read:<br/>
<a id="pl.33.11"></a><var>33.11</var>    Subd. 16. <b>Allowable service; limits and computation.</b> (a) "Allowable service" <br/>
<a id="pl.33.12"></a><var>33.12</var>means:<br/>
<a id="pl.33.13"></a><var>33.13</var>    (1) service during years of actual membership in the course of which employee <br/>
<a id="pl.33.14"></a><var>33.14</var>deductions were withheld from salary and contributions were made at the applicable rates <br/>
<a id="pl.33.15"></a><var>33.15</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.33.16"></a><var>33.16</var>(2) periods of service covered by payments in lieu of salary deductions under <br/>
<a id="pl.33.17"></a><var>33.17</var>sections 
         <statute_ref>353.27, subdivision 12</statute_ref>, and 
         <statute_ref>353.35</statute_ref>;<br/>
<a id="pl.33.18"></a><var>33.18</var>    (3) service in years during which the public employee was not a member but for <br/>
<a id="pl.33.19"></a><var>33.19</var>which the member later elected, while a member, to obtain credit by making payments to <br/>
<a id="pl.33.20"></a><var>33.20</var>the fund as permitted by any law then in effect;<br/>
<a id="pl.33.21"></a><var>33.21</var>    (4) a period of authorized leave of absence with pay from which deductions for <br/>
<a id="pl.33.22"></a><var>33.22</var>employee contributions are made, deposited, and credited to the fund;<br/>
<a id="pl.33.23"></a><var>33.23</var>    (5) a period of authorized personal, parental, or medical leave of absence without <br/>
<a id="pl.33.24"></a><var>33.24</var>pay, including a leave of absence covered under the federal Family Medical Leave Act, <br/>
<a id="pl.33.25"></a><var>33.25</var>that does not exceed one year, and for which a member obtained service credit for each <br/>
<a id="pl.33.26"></a><var>33.26</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.33.27"></a><var>33.27</var>salary deductions. An employee must return to public service and render a minimum of <br/>
<a id="pl.33.28"></a><var>33.28</var>three months of allowable service in order to be eligible to make payment under section <br/>
<statute_ref><a id="pl.33.29"></a><var>33.29</var>353.0161
         </statute_ref> for a subsequent authorized leave of absence without pay. Upon payment, the <br/>
<a id="pl.33.30"></a><var>33.30</var>employee must be granted allowable service credit for the purchased period;<br/>
<a id="pl.33.31"></a><var>33.31</var>    (6) a periodic, repetitive leave that is offered to all employees of a governmental <br/>
<a id="pl.33.32"></a><var>33.32</var>subdivision. The leave program may not exceed 208 hours per annual normal work cycle <br/>
<a id="pl.33.33"></a><var>33.33</var>as certified to the association by the employer. A participating member obtains service <br/>
<a id="pl.33.34"></a><var>33.34</var>credit by making employee contributions in an amount or amounts based on the member's <br/>
<a id="pl.33.35"></a><var>33.35</var>average salary, excluding overtime pay, that would have been paid if the leave had not been <br/>
<a id="pl.34.1"></a><var>34.1</var>taken. The employer shall pay the employer and additional employer contributions on <br/>
<a id="pl.34.2"></a><var>34.2</var>behalf of the participating member. The employee and the employer are responsible to pay <br/>
<a id="pl.34.3"></a><var>34.3</var>interest on their respective shares at the rate of 8.5 percent a year, compounded annually, <br/>
<a id="pl.34.4"></a><var>34.4</var>from the end of the normal cycle until full payment is made. An employer shall also make <br/>
<a id="pl.34.5"></a><var>34.5</var>the employer and additional employer contributions, plus 8.5 percent interest, compounded <br/>
<a id="pl.34.6"></a><var>34.6</var>annually, on behalf of an employee who makes employee contributions but terminates <br/>
<a id="pl.34.7"></a><var>34.7</var>public service. The employee contributions must be made within one year after the end of <br/>
<a id="pl.34.8"></a><var>34.8</var>the annual normal working cycle or within 30 days after termination of public service, <br/>
<a id="pl.34.9"></a><var>34.9</var>whichever is sooner. The executive director shall prescribe the manner and forms to be <br/>
<a id="pl.34.10"></a><var>34.10</var>used by a governmental subdivision in administering a periodic, repetitive leave. Upon <br/>
<a id="pl.34.11"></a><var>34.11</var>payment, the member must be granted allowable service credit for the purchased period;<br/>
<a id="pl.34.12"></a><var>34.12</var>    (7) an authorized temporary or seasonal layoff under subdivision 12, limited to three <br/>
<a id="pl.34.13"></a><var>34.13</var>months allowable service per authorized temporary or seasonal layoff in one calendar year. <br/>
<a id="pl.34.14"></a><var>34.14</var>An employee who has received the maximum service credit allowed for an authorized <br/>
<a id="pl.34.15"></a><var>34.15</var>temporary or seasonal layoff must return to public service and must obtain a minimum of <br/>
<a id="pl.34.16"></a><var>34.16</var>three months of allowable service subsequent to the layoff in order to receive allowable <br/>
<a id="pl.34.17"></a><var>34.17</var>service for a subsequent authorized temporary or seasonal layoff;<br/>
<a id="pl.34.18"></a><var>34.18</var>    (8) a period during which a member is absent from employment by a governmental <br/>
<a id="pl.34.19"></a><var>34.19</var>subdivision by reason of service in the uniformed services, as defined in United States <br/>
<a id="pl.34.20"></a><var>34.20</var>Code, title 38, section 4303(13), if the member returns to public service with the same <br/>
<a id="pl.34.21"></a><var>34.21</var>governmental subdivision upon discharge from service in the uniformed service within the <br/>
<a id="pl.34.22"></a><var>34.22</var>time frames required under United States Code, title 38, section 4312(e), provided that <br/>
<a id="pl.34.23"></a><var>34.23</var>the member did not separate from uniformed service with a dishonorable or bad conduct <br/>
<a id="pl.34.24"></a><var>34.24</var>discharge or under other than honorable conditions. The service must be credited if the <br/>
<a id="pl.34.25"></a><var>34.25</var>member pays into the fund equivalent employee contributions based upon the contribution <br/>
<a id="pl.34.26"></a><var>34.26</var>rate or rates in effect at the time that the uniformed service was performed multiplied <br/>
<a id="pl.34.27"></a><var>34.27</var>by the full and fractional years being purchased and applied to the annual salary rate. <br/>
<a id="pl.34.28"></a><var>34.28</var>The annual salary rate is the average annual salary, excluding overtime pay, during the <br/>
<a id="pl.34.29"></a><var>34.29</var>purchase period that the member would have received if the member had continued to <br/>
<a id="pl.34.30"></a><var>34.30</var>be employed in covered employment rather than to provide uniformed service, or, if <br/>
<a id="pl.34.31"></a><var>34.31</var>the determination of that rate is not reasonably certain, the annual salary rate is the <br/>
<a id="pl.34.32"></a><var>34.32</var>member's average salary rate, excluding overtime pay, during the 12-month period of <br/>
<a id="pl.34.33"></a><var>34.33</var>covered employment rendered immediately preceding the period of the uniformed service. <br/>
<a id="pl.34.34"></a><var>34.34</var>Payment of the member equivalent contributions must be made during a period that begins <br/>
<a id="pl.34.35"></a><var>34.35</var>with the date on which the individual returns to public employment and that is three times <br/>
<a id="pl.34.36"></a><var>34.36</var>the length of the military leave period, or within five years of the date of discharge from <br/>
<a id="pl.35.1"></a><var>35.1</var>the military service, whichever is less. If the determined payment period is less than <br/>
<a id="pl.35.2"></a><var>35.2</var>one year, the contributions required under this clause to receive service credit may be <br/>
<a id="pl.35.3"></a><var>35.3</var>made within one year of the discharge date. Payment may not be accepted following 30 <br/>
<a id="pl.35.4"></a><var>35.4</var>days after termination of public service under subdivision 11a. If the member equivalent <br/>
<a id="pl.35.5"></a><var>35.5</var>contributions provided for in this clause are not paid in full, the member's allowable <br/>
<a id="pl.35.6"></a><var>35.6</var>service credit must be prorated by multiplying the full and fractional number of years of <br/>
<a id="pl.35.7"></a><var>35.7</var>uniformed service eligible for purchase by the ratio obtained by dividing the total member <br/>
<a id="pl.35.8"></a><var>35.8</var>contributions received by the total member contributions otherwise required under this <br/>
<a id="pl.35.9"></a><var>35.9</var>clause. The equivalent employer contribution, and, if applicable, the equivalent additional <br/>
<a id="pl.35.10"></a><var>35.10</var>employer contribution must be paid by the governmental subdivision employing the <br/>
<a id="pl.35.11"></a><var>35.11</var>member if the member makes the equivalent employee contributions. The employer <br/>
<a id="pl.35.12"></a><var>35.12</var>payments must be made from funds available to the employing unit, using the employer <br/>
<a id="pl.35.13"></a><var>35.13</var>and additional employer contribution rate or rates in effect at the time that the uniformed <br/>
<a id="pl.35.14"></a><var>35.14</var>service was performed, applied to the same annual salary rate or rates used to compute the <br/>
<a id="pl.35.15"></a><var>35.15</var>equivalent member contribution. The governmental subdivision involved may appropriate <br/>
<a id="pl.35.16"></a><var>35.16</var>money for those payments. The amount of service credit obtainable under this section may <br/>
<a id="pl.35.17"></a><var>35.17</var>not exceed five years unless a longer purchase period is required under United States Code, <br/>
<a id="pl.35.18"></a><var>35.18</var>title 38, section 4312. The employing unit shall pay interest on all equivalent member and <br/>
<a id="pl.35.19"></a><var>35.19</var>employer contribution amounts payable under this clause. Interest must be computed at a <br/>
<a id="pl.35.20"></a><var>35.20</var>rate of 8.5 percent compounded annually from the end of each fiscal year of the leave or the <br/>
<a id="pl.35.21"></a><var>35.21</var>break in service to the end of the month in which the payment is received. Upon payment, <br/>
<a id="pl.35.22"></a><var>35.22</var>the employee must be granted allowable service credit for the purchased period; or<br/>
<a id="pl.35.23"></a><var>35.23</var>(9) a period specified under section 
         <statute_ref>353.0162</statute_ref>.<br/>
<a id="pl.35.24"></a><var>35.24</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.35.25"></a><var>35.25</var>state officers and employees displaced by the Community Corrections Act, chapter 401, <br/>
<a id="pl.35.26"></a><var>35.26</var>and transferred into county service under section 
         <statute_ref>401.04</statute_ref>, "allowable service" means the <br/>
<a id="pl.35.27"></a><var>35.27</var>combined years of allowable service as defined in paragraph (a), clauses (1) to (6), and <br/>
<a id="pl.35.28"></a><var>35.28</var>section 
         <statute_ref>352.01, subdivision 11</statute_ref>.<br/>
<a id="pl.35.29"></a><var>35.29</var>    (c) For a public employee who has prior service covered by a local police or <br/>
<a id="pl.35.30"></a><var>35.30</var>firefighters relief association that has consolidated with the Public Employees Retirement <br/>
<a id="pl.35.31"></a><var>35.31</var>Association under chapter 353A or to which section 
         <statute_ref>353.665</statute_ref> applies, and who has <br/>
<a id="pl.35.32"></a><var>35.32</var>elected the type of benefit coverage provided by the public employees police and fire <br/>
<a id="pl.35.33"></a><var>35.33</var>fund either under section 
         <statute_ref>353A.08</statute_ref> following the consolidation or under section 
         <statute_ref>353.665, <br/>
<a id="pl.35.34"></a><var>35.34</var>subdivision 4
         </statute_ref>, "allowable service" is a period of service credited by the local police or <br/>
<a id="pl.35.35"></a><var>35.35</var>firefighters relief association as of the effective date of the consolidation based on law <br/>
<a id="pl.36.1"></a><var>36.1</var>and on bylaw provisions governing the relief association on the date of the initiation <br/>
<a id="pl.36.2"></a><var>36.2</var>of the consolidation procedure.<br/>
<a id="pl.36.3"></a><var>36.3</var>    (d) No member may receive more than 12 months of allowable service credit in a <br/>
<a id="pl.36.4"></a><var>36.4</var>year either for vesting purposes or for benefit calculation purposes. For an active member <br/>
<a id="pl.36.5"></a><var>36.5</var>who was an active member of the former Minneapolis Firefighters Relief Association <br/>
<a id="pl.36.6"></a><var>36.6</var>on December 29, 2011, "allowable service" is the period of service credited by the <br/>
<a id="pl.36.7"></a><var>36.7</var>Minneapolis Firefighters Relief Association as reflected in the transferred records of the <br/>
<a id="pl.36.8"></a><var>36.8</var>association up to December 30, 2011, and the period of service credited under paragraph <br/>
<a id="pl.36.9"></a><var>36.9</var>(a), clause (1), after December 30, 2011. For an active member who was an active member <br/>
<a id="pl.36.10"></a><var>36.10</var>of the former Minneapolis Police Relief Association on December 29, 2011, "allowable <br/>
<a id="pl.36.11"></a><var>36.11</var>service" is the period of service credited by the Minneapolis Police Relief Association as <br/>
<a id="pl.36.12"></a><var>36.12</var>reflected in the transferred records of the association up to December 30, 2011, and the <br/>
<a id="pl.36.13"></a><var>36.13</var>period of service credited under paragraph (a), clause (1), after December 30, 2011.<br/>
<a id="pl.36.14"></a><var>36.14</var>    (e) MS 2002 [Expired]<br/>
<a id="pl.36.15"></a><var>36.15</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.3.3.0"></a><a id="pl.36.16"></a><var>36.16</var>    Sec. 3. Minnesota Statutes 2012, section 353.01, subdivision 17a, is amended to read:<br/>
<a id="pl.36.17"></a><var>36.17</var>    Subd. 17a. <b>Average salary.</b> (a) "Average salary," for purposes of calculating a <br/>
<a id="pl.36.18"></a><var>36.18</var>retirement annuity under section 
<statute_ref>353.29, subdivision 3</statute_ref> unless otherwise specified, means <br/>
<a id="pl.36.19"></a><var>36.19</var>an amount equivalent to the average of the highest salary of the member, police officer, <br/>
<a id="pl.36.20"></a><var>36.20</var>or firefighter, whichever applies, upon which employee contributions were paid for any <br/>
<a id="pl.36.21"></a><var>36.21</var>five successive years of allowable service, based on dates of salary periods as listed on <br/>
<a id="pl.36.22"></a><var>36.22</var>salary deduction reports. Average salary must be based upon all allowable service if <br/>
<a id="pl.36.23"></a><var>36.23</var>this service is less than five years.<br/>
<a id="pl.36.24"></a><var>36.24</var>(b) "Average salary" may not include any reduced salary paid during a period <br/>
<a id="pl.36.25"></a><var>36.25</var>in which the employee is entitled to benefit payments from workers' compensation for <br/>
<a id="pl.36.26"></a><var>36.26</var>temporary disability, unless the average salary is higher, including this period.<br/>
<a id="pl.36.27"></a><var>36.27</var>(c) "Average salary," for purposes of calculating benefits for a surviving spouse or <br/>
<a id="pl.36.28"></a><var>36.28</var>dependent children under section 353.657, subdivision 2 or 3, means the average of the <br/>
<a id="pl.36.29"></a><var>36.29</var>full-time monthly base salary rate in effect during the last six months of allowable service. <br/>
<a id="pl.36.30"></a><var>36.30</var>If the employment during the last six months of allowable service was part-time, the <br/>
<a id="pl.36.31"></a><var>36.31</var>average salary must be prorated based on the actual number of hours worked.<br/>
<a id="pl.36.32"></a><var>36.32</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.3.4.0"></a><a id="pl.36.33"></a><var>36.33</var>    Sec. 4. Minnesota Statutes 2012, section 353.01, subdivision 29, is amended to read:<br/>
<a id="pl.37.1"></a><var>37.1</var>    Subd. 29. <b>Designated beneficiary.</b> "Designated beneficiary" means the person or,<br/>
<a id="pl.37.2"></a><var>37.2</var> organization, trust, or estate designated by a member, former member, disabilitant, or <br/>
<a id="pl.37.3"></a><var>37.3</var>retired member in writing, signed and filed with the association before the death of the <br/>
<a id="pl.37.4"></a><var>37.4</var>member, former member, disabilitant, or retired member, or a person legally authorized <br/>
<a id="pl.37.5"></a><var>37.5</var>to act on behalf of the member or former member to receive a refund of the balance of <br/>
<a id="pl.37.6"></a><var>37.6</var>the member's or former member's accumulated deductions after death. A beneficiary <br/>
<a id="pl.37.7"></a><var>37.7</var>designation is valid if it is made in the form prescribed by the executive director and <br/>
<a id="pl.37.8"></a><var>37.8</var>is received by the association on or before the date of death of the member or former <br/>
<a id="pl.37.9"></a><var>37.9</var>member. If a beneficiary designation is deemed to be invalid for any reason, any remaining <br/>
<a id="pl.37.10"></a><var>37.10</var>balance of the member's or former member's accumulated deductions are subject to the <br/>
<a id="pl.37.11"></a><var>37.11</var>provisions of section 353.32, subdivisions 4 and 5.<br/>
<a id="pl.37.12"></a><var>37.12</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.3.5.0"></a><a id="pl.37.13"></a><var>37.13</var>    Sec. 5. Minnesota Statutes 2012, section 353.27, subdivision 7, is amended to read:<br/>
<a id="pl.37.14"></a><var>37.14</var>    Subd. 7. <b>Adjustment for erroneous receipts or disbursements.</b> (a) Except <br/>
<a id="pl.37.15"></a><var>37.15</var>as provided in paragraph (b), erroneous employee deductions and erroneous employer <br/>
<a id="pl.37.16"></a><var>37.16</var>contributions and additional employer contributions to the general employees retirement <br/>
<a id="pl.37.17"></a><var>37.17</var>plan of the Public Employees Retirement Association or to the public employees police <br/>
<a id="pl.37.18"></a><var>37.18</var>and fire retirement plan for a person who otherwise does not qualify for membership <br/>
<a id="pl.37.19"></a><var>37.19</var>under this chapter, are considered:<br/>
<a id="pl.37.20"></a><var>37.20</var>(1) valid if the initial erroneous deduction began before January 1, 1990. Upon <br/>
<a id="pl.37.21"></a><var>37.21</var>determination of the error by the association, the person may continue membership in the <br/>
<a id="pl.37.22"></a><var>37.22</var>association while employed in the same position for which erroneous deductions were <br/>
<a id="pl.37.23"></a><var>37.23</var>taken, or file a written election to terminate membership and apply for a refund upon <br/>
<a id="pl.37.24"></a><var>37.24</var>termination of public service or defer an annuity under section 
         <statute_ref>353.34</statute_ref>; or<br/>
<a id="pl.37.25"></a><var>37.25</var>(2) invalid, if the initial erroneous employee deduction began on or after January 1, <br/>
<a id="pl.37.26"></a><var>37.26</var>1990. Upon determination of the error, the association shall refund all erroneous employee <br/>
<a id="pl.37.27"></a><var>37.27</var>deductions and all erroneous employer contributions as specified in paragraph (e). No <br/>
<a id="pl.37.28"></a><var>37.28</var>person may claim a right to continued or past membership in the association based on <br/>
<a id="pl.37.29"></a><var>37.29</var>erroneous deductions which began on or after January 1, 1990.<br/>
<a id="pl.37.30"></a><var>37.30</var>(b) Erroneous deductions taken from the salary of a person who did not qualify <br/>
<a id="pl.37.31"></a><var>37.31</var>for membership in the general employees retirement plan of the Public Employees <br/>
<a id="pl.37.32"></a><var>37.32</var>Retirement Association or in the public employees police and fire retirement plan by <br/>
<a id="pl.37.33"></a><var>37.33</var>virtue of concurrent employment before July 1, 1978, which required contributions to <br/>
<a id="pl.37.34"></a><var>37.34</var>another retirement fund or relief association established for the benefit of officers and <br/>
<a id="pl.37.35"></a><var>37.35</var>employees of a governmental subdivision, are invalid. Upon discovery of the error, <br/>
<a id="pl.38.1"></a><var>38.1</var>allowable service credit for all invalid service if forfeited and, upon termination of public <br/>
<a id="pl.38.2"></a><var>38.2</var>service, the association shall refund all erroneous employee deductions to the person, with <br/>
<a id="pl.38.3"></a><var>38.3</var>interest as determined under section 
         <statute_ref>353.34, subdivision 2</statute_ref>, and all erroneous employer <br/>
<a id="pl.38.4"></a><var>38.4</var>contributions without interest to the employer. This paragraph has both retroactive and <br/>
<a id="pl.38.5"></a><var>38.5</var>prospective application.<br/>
<a id="pl.38.6"></a><var>38.6</var>(c) Adjustments to correct employer contributions and employee deductions taken <br/>
<a id="pl.38.7"></a><var>38.7</var>in error from amounts which are not salary under section 
         <statute_ref>353.01, subdivision 10</statute_ref>, must <br/>
<a id="pl.38.8"></a><var>38.8</var>be made as specified in paragraph (e). The period of adjustment must be limited to the <br/>
<a id="pl.38.9"></a><var>38.9</var>fiscal year in which the error is discovered by the association and the immediate two <br/>
<a id="pl.38.10"></a><var>38.10</var>preceding fiscal years.<br/>
<a id="pl.38.11"></a><var>38.11</var>(d) If there is evidence of fraud or other misconduct on the part of the employee or <br/>
<a id="pl.38.12"></a><var>38.12</var>the employer, the board of trustees may authorize adjustments to the account of a member <br/>
<a id="pl.38.13"></a><var>38.13</var>or former member to correct erroneous employee deductions and employer contributions <br/>
<a id="pl.38.14"></a><var>38.14</var>on invalid salary and the recovery of any overpayments for a period longer than provided <br/>
<a id="pl.38.15"></a><var>38.15</var>for under paragraph (c).<br/>
<a id="pl.38.16"></a><var>38.16</var>(e) Upon discovery of the receipt of erroneous employee deductions and employer <br/>
<a id="pl.38.17"></a><var>38.17</var>contributions under paragraph (a), clause (2), or paragraph (c), the association must require <br/>
<a id="pl.38.18"></a><var>38.18</var>the employer to discontinue the erroneous employee deductions and erroneous employer <br/>
<a id="pl.38.19"></a><var>38.19</var>contributions reported on behalf of a member. Upon discontinuation, the association must:<br/>
<a id="pl.38.20"></a><var>38.20</var>(1) for a member, provide a refund in the amount of the invalid employee deductions <br/>
<a id="pl.38.21"></a><var>38.21</var>with interest on the invalid employee deductions at the rate specified under section 
         <statute_ref>353.34, <br/>
<a id="pl.38.22"></a><var>38.22</var>subdivision 2
         </statute_ref>, from the received date of each invalid salary transaction through the date <br/>
<a id="pl.38.23"></a><var>38.23</var>the credit or refund is made;<br/>
<a id="pl.38.24"></a><var>38.24</var>(2) for a former member who:<br/>
<a id="pl.38.25"></a><var>38.25</var>(i) is not receiving a retirement annuity or benefit, return the erroneous employee <br/>
<a id="pl.38.26"></a><var>38.26</var>deductions to the former member through a refund with interest at the rate specified under <br/>
<a id="pl.38.27"></a><var>38.27</var>section 
         <statute_ref>353.34, subdivision 2</statute_ref>, from the received date of each invalid salary transaction <br/>
<a id="pl.38.28"></a><var>38.28</var>through the date the credit or refund is made; or<br/>
<a id="pl.38.29"></a><var>38.29</var>(ii) is receiving a retirement annuity or disability benefit, or a person who is <br/>
<a id="pl.38.30"></a><var>38.30</var>receiving an optional annuity or survivor benefit, for whom it has been determined an <br/>
<a id="pl.38.31"></a><var>38.31</var>overpayment must be recovered, adjust the payment amount and recover the overpayments <br/>
<a id="pl.38.32"></a><var>38.32</var>as provided under this section; and<br/>
<a id="pl.38.33"></a><var>38.33</var>(3) return the invalid employer contributions reported on behalf of a member or <br/>
<a id="pl.38.34"></a><var>38.34</var>former member to the employer by providing a credit against future contributions payable <br/>
<a id="pl.38.35"></a><var>38.35</var>by the employer.<br/>
<a id="pl.39.1"></a><var>39.1</var>(f) In the event that a salary warrant or check from which a deduction for the <br/>
<a id="pl.39.2"></a><var>39.2</var>retirement fund was taken has been canceled or the amount of the warrant or check <br/>
<a id="pl.39.3"></a><var>39.3</var>returned to the funds of the department making the payment, a refund of the sum <br/>
<a id="pl.39.4"></a><var>39.4</var>deducted, or any portion of it that is required to adjust the deductions, must be made <br/>
<a id="pl.39.5"></a><var>39.5</var>to the department or institution.<br/>
<a id="pl.39.6"></a><var>39.6</var>(g) If the accrual date of any association discovers that a retirement annuity, survivor <br/>
<a id="pl.39.7"></a><var>39.7</var>benefit, or disability benefit is within the limitation period specified in paragraph (c), and <br/>
<a id="pl.39.8"></a><var>39.8</var>an overpayment has resulted has been incorrectly calculated by using invalid service or <br/>
<a id="pl.39.9"></a><var>39.9</var>salary, or due to any erroneous calculation procedure, the association must recalculate <br/>
<a id="pl.39.10"></a><var>39.10</var>the annuity or benefit payable and recover any begin payment of the corrected annuity or <br/>
<a id="pl.39.11"></a><var>39.11</var>benefit effective the first of the month following discovery of the error. Any overpayment <br/>
<a id="pl.39.12"></a><var>39.12</var>resulting from the incorrect calculation must be recovered as provided under subdivision <br/>
<a id="pl.39.13"></a><var>39.13</var>7b, if the accrual date, or any adjustment in the amount of the annuity or benefit calculated <br/>
<a id="pl.39.14"></a><var>39.14</var>after the accrual date, except adjustments required under section 353.656, subdivision 4, <br/>
<a id="pl.39.15"></a><var>39.15</var>falls within the current fiscal year and the two immediate previous fiscal years.<br/>
<a id="pl.39.16"></a><var>39.16</var>(h) Notwithstanding the provisions of this subdivision, the association may apply <br/>
<a id="pl.39.17"></a><var>39.17</var>the Revenue Procedures defined in the federal Internal Revenue Service Employee Plans <br/>
<a id="pl.39.18"></a><var>39.18</var>Compliance Resolution System and not issue a refund of erroneous employee deductions <br/>
<a id="pl.39.19"></a><var>39.19</var>and employer contributions or not recover a small overpayment of benefits if the cost to <br/>
<a id="pl.39.20"></a><var>39.20</var>correct the error would exceed the amount of the member refund or overpayment.<br/>
<a id="pl.39.21"></a><var>39.21</var>(i) Any fees or penalties assessed by the federal Internal Revenue Service for any <br/>
<a id="pl.39.22"></a><var>39.22</var>failure by an employer to follow the statutory requirements for reporting eligible members <br/>
<a id="pl.39.23"></a><var>39.23</var>and salary must be paid by the employer.<br/>
<a id="pl.39.24"></a><var>39.24</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.3.6.0"></a><a id="pl.39.25"></a><var>39.25</var>    Sec. 6. Minnesota Statutes 2012, section 353.34, subdivision 1, is amended to read:<br/>
<a id="pl.39.26"></a><var>39.26</var>    Subdivision 1. <b>Refund or deferred annuity.</b> (a) A former member is entitled to <br/>
<a id="pl.39.27"></a><var>39.27</var>either a refund of accumulated employee deductions under subdivision 2, or to a deferred <br/>
<a id="pl.39.28"></a><var>39.28</var>annuity under subdivision 3. Application for a refund may not be made before the date of <br/>
<a id="pl.39.29"></a><var>39.29</var>termination of public service. Except as specified in paragraph (b), A refund must be paid <br/>
<a id="pl.39.30"></a><var>39.30</var>within 120 days following receipt of the application unless the applicant has again become <br/>
<a id="pl.39.31"></a><var>39.31</var>a public employee required to be covered by the association.<br/>
<a id="pl.39.32"></a><var>39.32</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.39.33"></a><var>39.33</var>a refund is not payable before termination of service under section 
         <statute_ref>353.01, subdivision 11a</statute_ref>.<br/>
<a id="pl.39.34"></a><var>39.34</var>(c) An individual who terminates public service covered by the Public Employees <br/>
<a id="pl.39.35"></a><var>39.35</var>Retirement Association general employees retirement plan, the MERF division, the Public <br/>
<a id="pl.40.1"></a><var>40.1</var>Employees Retirement Association police and fire retirement plan, or the public employees <br/>
<a id="pl.40.2"></a><var>40.2</var>local government correctional service retirement plan, and who is employed by a different <br/>
<a id="pl.40.3"></a><var>40.3</var>employer and who becomes an active member covered by one of the other two plans, may <br/>
<a id="pl.40.4"></a><var>40.4</var>receive a refund of employee contributions plus annual compound interest from the plan <br/>
<a id="pl.40.5"></a><var>40.5</var>from which the member terminated service at the applicable rate specified in subdivision 2.<br/>
<a id="pl.40.6"></a><var>40.6</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.3.7.0"></a><a id="pl.40.7"></a><var>40.7</var>    Sec. 7. Minnesota Statutes 2012, section 353.34, subdivision 2, is amended to read:<br/>
<a id="pl.40.8"></a><var>40.8</var>    Subd. 2. <b>Refund with interest.</b> (a) Except as provided in subdivision 1, any person <br/>
<a id="pl.40.9"></a><var>40.9</var>who ceases to be a public employee is entitled to receive a refund in an amount equal to <br/>
<a id="pl.40.10"></a><var>40.10</var>accumulated deductions with annual compound interest to the first day of the month <br/>
<a id="pl.40.11"></a><var>40.11</var>in which the refund is processed.<br/>
<a id="pl.40.12"></a><var>40.12</var>(b) For a person who ceases to be a public employee before July 1, 2011, the refund <br/>
<a id="pl.40.13"></a><var>40.13</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.40.14"></a><var>40.14</var>June 30, 2011. For a person who ceases to be a public employee after July 1, 2011, the <br/>
<a id="pl.40.15"></a><var>40.15</var>refund interest is at the rate of four percent.<br/>
<a id="pl.40.16"></a><var>40.16</var>(c) If a person repays a refund and subsequently applies for another refund, the <br/>
<a id="pl.40.17"></a><var>40.17</var>repayment amount, including interest, is added to the fiscal year balance in which the <br/>
<a id="pl.40.18"></a><var>40.18</var>repayment was made.<br/>
<a id="pl.40.19"></a><var>40.19</var>(d) If the refund payable to a member is based on employee deductions that are <br/>
<a id="pl.40.20"></a><var>40.20</var>determined to be invalid under section 353.27, subdivision 7, the interest payable on the <br/>
<a id="pl.40.21"></a><var>40.21</var>invalid employee deductions is four percent.<br/>
<a id="pl.40.22"></a><var>40.22</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.3.8.0"></a><a id="pl.40.23"></a><var>40.23</var>    Sec. 8. Minnesota Statutes 2012, section 353.50, subdivision 3, is amended to read:<br/>
<a id="pl.40.24"></a><var>40.24</var>    Subd. 3. <b>Service credit and benefit liability transfer.</b> (a) All allowable service <br/>
<a id="pl.40.25"></a><var>40.25</var>credit and salary credit of the members of the Minneapolis Employees Retirement Fund <br/>
<a id="pl.40.26"></a><var>40.26</var>as specified in the records of the Minneapolis Employees Retirement Fund through June <br/>
<a id="pl.40.27"></a><var>40.27</var>30, 2010, are transferred to the MERF division of the Public Employees Retirement <br/>
<a id="pl.40.28"></a><var>40.28</var>Association and are credited by the MERF division. Annuities or benefits of persons <br/>
<a id="pl.40.29"></a><var>40.29</var>who are active members of the former Minneapolis Employees Retirement Fund on <br/>
<a id="pl.40.30"></a><var>40.30</var>June 30, 2010, must be calculated under Minnesota Statutes 2008, sections 
<statute_ref>422A.11</statute_ref>; <br/>
<a id="pl.40.31"></a><var>40.31</var><statute_ref>422A.12</statute_ref>; 
<statute_ref>422A.13</statute_ref>; 
<statute_ref>422A.14</statute_ref>; 
<statute_ref>422A.15</statute_ref>; 
<statute_ref>422A.151</statute_ref>; 
<statute_ref>422A.155</statute_ref>; 
<statute_ref>422A.156</statute_ref>; 
<statute_ref>422A.16</statute_ref>; <br/>
<a id="pl.40.32"></a><var>40.32</var><statute_ref>422A.17</statute_ref>; 
<statute_ref>422A.18</statute_ref>; 
<statute_ref>422A.19</statute_ref>; 
<statute_ref>422A.20</statute_ref>; and 
<statute_ref>422A.23</statute_ref>, but are only eligible for automatic <br/>
<a id="pl.40.33"></a><var>40.33</var>postretirement adjustments after December 31, 2010, under section 
<statute_ref>356.415</statute_ref>.<br/>
<a id="pl.41.1"></a><var>41.1</var>(b) The liability for the payment of annuities and benefits of the Minneapolis <br/>
<a id="pl.41.2"></a><var>41.2</var>Employees Retirement Fund retirees and benefit recipients as specified in the records of <br/>
<a id="pl.41.3"></a><var>41.3</var>the Minneapolis Employees Retirement Fund on June 29, 2010, is transferred to the <br/>
<a id="pl.41.4"></a><var>41.4</var>MERF division of the Public Employees Retirement Association on June 30, 2010.<br/>
<a id="pl.41.5"></a><var>41.5</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.3.9.0"></a><a id="pl.41.6"></a><var>41.6</var>    Sec. 9. Minnesota Statutes 2012, section 353.50, subdivision 6, is amended to read:<br/>
<a id="pl.41.7"></a><var>41.7</var>    Subd. 6. <b>Benefits.</b> (a) <b>Retired, disabled, deferred, and inactive member benefits. </b><br/>
<a id="pl.41.8"></a><var>41.8</var>The annuities and benefits of, or attributable to, retired, disabled, deferred, or inactive <br/>
<a id="pl.41.9"></a><var>41.9</var>Minneapolis Employees Retirement Fund members with that status as of June 30, 2010, <br/>
<a id="pl.41.10"></a><var>41.10</var>with the exception of post-December 31, 2010, postretirement adjustments, which <br/>
<a id="pl.41.11"></a><var>41.11</var>are governed by paragraph (b), as calculated under Minnesota Statutes 2008, sections <br/>
<statute_ref><a id="pl.41.12"></a><var>41.12</var>422A.11
         </statute_ref>; 
         <statute_ref>422A.12</statute_ref>; 
         <statute_ref>422A.13</statute_ref>; 
         <statute_ref>422A.14</statute_ref>; 
         <statute_ref>422A.15</statute_ref>; 
         <statute_ref>422A.151</statute_ref>; 
         <statute_ref>422A.155</statute_ref>; 
         <statute_ref>422A.156</statute_ref>; <br/>
<statute_ref><a id="pl.41.13"></a><var>41.13</var>422A.16
         </statute_ref>; 
         <statute_ref>422A.17</statute_ref>; 
         <statute_ref>422A.18</statute_ref>; 
         <statute_ref>422A.19</statute_ref>; 
         <statute_ref>422A.20</statute_ref>; and 
         <statute_ref>422A.23</statute_ref>, continue in force after the <br/>
<a id="pl.41.14"></a><var>41.14</var>administrative consolidation under Laws 2010, chapter 359, article 11.<br/>
<a id="pl.41.15"></a><var>41.15</var>(b) <b>Benefits; benefit eligibility for June 30, 2010, active members.</b> Persons who <br/>
<a id="pl.41.16"></a><var>41.16</var>were active members of the former Minneapolis Employees Retirement Fund on June <br/>
<a id="pl.41.17"></a><var>41.17</var>30, 2010, upon satisfying eligibility requirements stated in the applicable sections of <br/>
<a id="pl.41.18"></a><var>41.18</var>Minnesota Statutes 2008 specified in paragraph (a), are entitled to annuities or benefits <br/>
<a id="pl.41.19"></a><var>41.19</var>specified in those sections. Eligibility for a formula retirement annuity includes the <br/>
<a id="pl.41.20"></a><var>41.20</var>requirement in Minnesota Statutes 2008, sections 422A.13 and 422A.16, that the <br/>
<a id="pl.41.21"></a><var>41.21</var>terminating member has attained retirement age, which is age 60 if the person has at least <br/>
<a id="pl.41.22"></a><var>41.22</var>ten years of service credit, or any age if the person has 30 or more years of service credit.<br/>
<a id="pl.41.23"></a><var>41.23</var>(b) (c) <b>Postretirement adjustments.</b> After December 31, 2010, annuities and <br/>
<a id="pl.41.24"></a><var>41.24</var>benefits from the MERF division are eligible for annual automatic postretirement <br/>
<a id="pl.41.25"></a><var>41.25</var>adjustments solely under section 
         <statute_ref>356.415</statute_ref>.<br/>
<a id="pl.41.26"></a><var>41.26</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.3.10.0"></a><a id="pl.41.27"></a><var>41.27</var>    Sec. 10. Minnesota Statutes 2012, section 353.657, subdivision 2, is amended to read:<br/>
<a id="pl.41.28"></a><var>41.28</var>    Subd. 2. <b>Benefit amount.</b> (a) The spouse of a deceased member is entitled to <br/>
<a id="pl.41.29"></a><var>41.29</var>receive a monthly benefit for life equal to the following percentage of the member's <br/>
<a id="pl.41.30"></a><var>41.30</var>average full-time monthly salary rate, as defined in section 353.01, subdivision 17a, <br/>
<a id="pl.41.31"></a><var>41.31</var>paragraph (c),  as a member of the police and fire plan in effect over the last six months of <br/>
<a id="pl.41.32"></a><var>41.32</var>allowable service preceding the month in which death occurred:<br/>
<a id="pl.42.1"></a><var>42.1</var>    (1) if the death was a line of duty death, 60 percent of the stated average salary <br/>
<a id="pl.42.2"></a><var>42.2</var>is payable; and<br/>
<a id="pl.42.3"></a><var>42.3</var>    (2) if the death was not a line of duty death or if death occurred while receiving <br/>
<a id="pl.42.4"></a><var>42.4</var>disability benefits that accrued before July 1, 2007, 50 percent of the stated average salary <br/>
<a id="pl.42.5"></a><var>42.5</var>is payable.<br/>
<a id="pl.42.6"></a><var>42.6</var>    (b) If the member was a part-time employee in the position for which the employee <br/>
<a id="pl.42.7"></a><var>42.7</var>qualified for participation in the police and fire plan, the monthly survivor benefit is based <br/>
<a id="pl.42.8"></a><var>42.8</var>on the salary rate in effect for that member's part-time service during the last six months <br/>
<a id="pl.42.9"></a><var>42.9</var>of allowable service. If the member's status changed from full time to part time for due <br/>
<a id="pl.42.10"></a><var>42.10</var>to health reasons during the last year 12 months of employment, notwithstanding the <br/>
<a id="pl.42.11"></a><var>42.11</var>definition of average salary in section 353.01, subdivision 17a, paragraph (c), the average <br/>
<a id="pl.42.12"></a><var>42.12</var>salary used to compute the monthly survivor benefit is must be based on the full-time <br/>
<a id="pl.42.13"></a><var>42.13</var>salary rate of the position held as a member of the police and fire plan in effect over the <br/>
<a id="pl.42.14"></a><var>42.14</var>last six months of allowable service preceding the month in which the death occurred.<br/>
<a id="pl.42.15"></a><var>42.15</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.3.11.0"></a><a id="pl.42.16"></a><var>42.16</var>    Sec. 11. Minnesota Statutes 2012, section 353.657, subdivision 2a, is amended to read:<br/>
<a id="pl.42.17"></a><var>42.17</var>    Subd. 2a. <b>Death while eligible survivor benefit.</b> (a) If a member or former member <br/>
<a id="pl.42.18"></a><var>42.18</var>who has attained the age of at least 50 years and either who is vested under section <br/>
<statute_ref><a id="pl.42.19"></a><var>42.19</var>353.01, subdivision 47
         </statute_ref>, or who has credit for at least 30 years of allowable service, <br/>
<a id="pl.42.20"></a><var>42.20</var>regardless of age attained, dies before the annuity or disability benefit becomes payable, <br/>
<a id="pl.42.21"></a><var>42.21</var>notwithstanding any designation of beneficiary to the contrary, the surviving spouse may <br/>
<a id="pl.42.22"></a><var>42.22</var>elect to receive a death while eligible survivor benefit.<br/>
<a id="pl.42.23"></a><var>42.23</var>    (b) Notwithstanding the definition of surviving spouse in section 
         <statute_ref>353.01, subdivision <br/>
<a id="pl.42.24"></a><var>42.24</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.42.25"></a><var>42.25</var>eligible survivor benefit if stipulated under the terms of a marriage dissolution decree <br/>
<a id="pl.42.26"></a><var>42.26</var>filed with the association. If there is no surviving spouse or child or children, a former <br/>
<a id="pl.42.27"></a><var>42.27</var>spouse may be entitled to a lump-sum refund payment under section 
         <statute_ref>353.32, subdivision <br/>
<a id="pl.42.28"></a><var>42.28</var>1
         </statute_ref>, if provided for in a marriage dissolution decree but not a death while eligible survivor <br/>
<a id="pl.42.29"></a><var>42.29</var>benefit despite the terms of a marriage dissolution decree filed with the association.<br/>
<a id="pl.42.30"></a><var>42.30</var>    (c) The benefit may be elected instead of a refund with interest under section 
         <statute_ref>353.32, <br/>
<a id="pl.42.31"></a><var>42.31</var>subdivision 1
         </statute_ref>, or surviving spouse benefits otherwise payable under subdivisions 1 and <br/>
<a id="pl.42.32"></a><var>42.32</var>2. The benefit must be an annuity equal to the 100 percent joint and survivor annuity <br/>
<a id="pl.42.33"></a><var>42.33</var>which the member could have qualified for on the date of death, computed as provided in <br/>
<a id="pl.42.34"></a><var>42.34</var>sections 353.651, subdivisions 2 and subdivision 3, and 
         <statute_ref>353.30, subdivision 3</statute_ref>.<br/>
<a id="pl.43.1"></a><var>43.1</var>    (d) The surviving spouse may apply for the annuity at any time after the date <br/>
<a id="pl.43.2"></a><var>43.2</var>on which the deceased employee would have attained the required age for retirement <br/>
<a id="pl.43.3"></a><var>43.3</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.43.4"></a><var>43.4</var>subdivision 2
         </statute_ref>, apply to a deferred annuity payable under this subdivision.<br/>
<a id="pl.43.5"></a><var>43.5</var>    (e) No payment accrues beyond the end of the month in which entitlement to <br/>
<a id="pl.43.6"></a><var>43.6</var>such annuity has terminated. An amount equal to the excess, if any, of the accumulated <br/>
<a id="pl.43.7"></a><var>43.7</var>contributions which were credited to the account of the deceased employee over and <br/>
<a id="pl.43.8"></a><var>43.8</var>above the total of the annuities paid and payable to the surviving spouse must be paid to <br/>
<a id="pl.43.9"></a><var>43.9</var>the deceased member's last designated beneficiary or, if none, to the legal representative of <br/>
<a id="pl.43.10"></a><var>43.10</var>the estate of such deceased member.<br/>
<a id="pl.43.11"></a><var>43.11</var>    (f) Any member may request in writing, with the signed consent of the spouse, that <br/>
<a id="pl.43.12"></a><var>43.12</var>this subdivision not apply and that payment be made only to the designated beneficiary, as <br/>
<a id="pl.43.13"></a><var>43.13</var>otherwise provided by this chapter.<br/>
<a id="pl.43.14"></a><var>43.14</var>    (g) For a member who is employed as a full-time firefighter by the Department of <br/>
<a id="pl.43.15"></a><var>43.15</var>Military Affairs of the state of Minnesota, allowable service as a full-time state Military <br/>
<a id="pl.43.16"></a><var>43.16</var>Affairs Department firefighter credited by the Minnesota State Retirement System may be <br/>
<a id="pl.43.17"></a><var>43.17</var>used in meeting the minimum allowable service requirement of this subdivision.<br/>
<a id="pl.43.18"></a><var>43.18</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.3.12.0"></a><a id="pl.43.19"></a><var>43.19</var>    Sec. 12. Minnesota Statutes 2012, section 353.657, subdivision 3, is amended to read:<br/>
<a id="pl.43.20"></a><var>43.20</var>    Subd. 3. <b>Dependent children.</b> (a) A dependent child, as defined in section 
         <statute_ref>353.01, <br/>
<a id="pl.43.21"></a><var>43.21</var>subdivision 15
         </statute_ref>, is entitled to receive a monthly benefit equal to ten percent of the member's <br/>
<a id="pl.43.22"></a><var>43.22</var>average full-time monthly salary rate, as defined in section 353.01, subdivision 17a, <br/>
<a id="pl.43.23"></a><var>43.23</var>paragraph (c),  as a member of the police and fire plan in effect over the last six months of <br/>
<a id="pl.43.24"></a><var>43.24</var>allowable service preceding the month in which death occurred.<br/>
<a id="pl.43.25"></a><var>43.25</var>(b) If the member's status changed from full-time to part-time due to health reasons <br/>
<a id="pl.43.26"></a><var>43.26</var>during the last 12 months of employment, notwithstanding the definition of average salary <br/>
<a id="pl.43.27"></a><var>43.27</var>in section 353.01, subdivision 17a, paragraph (c), the average salary used to compute the <br/>
<a id="pl.43.28"></a><var>43.28</var>monthly dependent child benefit must be based on the full-time salary rate of the position <br/>
<a id="pl.43.29"></a><var>43.29</var>held as a member of the police and fire plan in effect over the last six months of allowable <br/>
<a id="pl.43.30"></a><var>43.30</var>service preceding the month in which the death occurred.<br/>
<a id="pl.43.31"></a><var>43.31</var>    (c) Payments for the benefit of a dependent child must be made to the surviving <br/>
<a id="pl.43.32"></a><var>43.32</var>parent, or to the legal guardian of the child or to any adult person with whom the child <br/>
<a id="pl.43.33"></a><var>43.33</var>may at the time be living, provided only that the parent or other person to whom any <br/>
<a id="pl.43.34"></a><var>43.34</var>amount is to be paid advises the board in writing that the amount will be held or used in <br/>
<a id="pl.43.35"></a><var>43.35</var>trust for the benefit of the child.<br/>
<a id="pl.44.1"></a><var>44.1</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.3.13.0"></a><a id="pl.44.2"></a><var>44.2</var>    Sec. 13. Minnesota Statutes 2012, section 353F.02, subdivision 3, is amended to read:<br/>
<a id="pl.44.3"></a><var>44.3</var>    Subd. 3. <b>Effective date</b><b> of privatization</b><b>.</b> "Effective date of privatization" means <br/>
<a id="pl.44.4"></a><var>44.4</var>the date that the operation of the a medical facility or other public employing unit is <br/>
<a id="pl.44.5"></a><var>44.5</var>assumed by another employer or the date that the a medical facility or other public <br/>
<a id="pl.44.6"></a><var>44.6</var>employing unit is purchased by another employer and active membership in the Public <br/>
<a id="pl.44.7"></a><var>44.7</var>Employees Retirement Association consequently terminates.<br/>
<a id="pl.44.8"></a><var>44.8</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.3.14.0"></a><a id="pl.44.9"></a><var>44.9</var>    Sec. 14. Minnesota Statutes 2012, section 353F.02, subdivision 4, is amended to read:<br/>
<a id="pl.44.10"></a><var>44.10</var>    Subd. 4. <b>Medical facility.</b> "Medical facility" means:<br/>
<a id="pl.44.11"></a><var>44.11</var>    (1) Bridges Medical Services;<br/>
<a id="pl.44.12"></a><var>44.12</var>(2) Cedarview Care Center in Steele County;<br/>
<a id="pl.44.13"></a><var>44.13</var>    (3) the City of Cannon Falls Hospital;<br/>
<a id="pl.44.14"></a><var>44.14</var>    (4) the Chris Jenson Health and Rehabilitation Center in St. Louis County;<br/>
<a id="pl.44.15"></a><var>44.15</var>(5) Cornerstone Nursing and Rehabilitation Center in Clearwater County Memorial <br/>
<a id="pl.44.16"></a><var>44.16</var>Hospital doing business as Clearwater Health Services in Bagley;<br/>
<a id="pl.44.17"></a><var>44.17</var>    (6) the Dassel Lakeside Community Home;<br/>
<a id="pl.44.18"></a><var>44.18</var>(7) the Douglas County Hospital, with respect to the Mental Health Unit;<br/>
<a id="pl.44.19"></a><var>44.19</var>    (8) the Fair Oaks Lodge, Wadena;<br/>
<a id="pl.44.20"></a><var>44.20</var>    (9) the Glencoe Area Health Center;<br/>
<a id="pl.44.21"></a><var>44.21</var>    (10) Hutchinson Area Health Care;<br/>
<a id="pl.44.22"></a><var>44.22</var>(11) Lake County Sunrise Home;<br/>
<a id="pl.44.23"></a><var>44.23</var>    (11) (12) the Lakefield Nursing Home;<br/>
<a id="pl.44.24"></a><var>44.24</var>    (12) (13) the Lakeview Nursing Home in Gaylord;<br/>
<a id="pl.44.25"></a><var>44.25</var>    (13) (14) the Luverne Public Hospital;<br/>
<a id="pl.44.26"></a><var>44.26</var>    (14) (15) the Oakland Park Nursing Home;<br/>
<a id="pl.44.27"></a><var>44.27</var>    (15) (16) the RenVilla Nursing Home;<br/>
<a id="pl.44.28"></a><var>44.28</var>    (16) (17) the Rice Memorial Hospital in Willmar, with respect to the Department <br/>
<a id="pl.44.29"></a><var>44.29</var>of Radiology and the Department of Radiation/Oncology;<br/>
<a id="pl.44.30"></a><var>44.30</var>(17) (18) the St. Peter Community Health Care Center;<br/>
<a id="pl.44.31"></a><var>44.31</var>(18) (19) the Traverse Care Center in Traverse County;<br/>
<a id="pl.44.32"></a><var>44.32</var>    (19) (20) the Waconia-Ridgeview Medical Center;<br/>
<a id="pl.44.33"></a><var>44.33</var>(20) (21) the Weiner Memorial Medical Center, Inc.;<br/>
<a id="pl.44.34"></a><var>44.34</var>(21) (22) the Wheaton Community Hospital; and<br/>
<a id="pl.45.1"></a><var>45.1</var>(22) (23) the Worthington Regional Hospital.<br/>
<a id="pl.45.2"></a><var>45.2</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment if <br/>
<a id="pl.45.3"></a><var>45.3</var>Minnesota Statutes, section 353F.02, subdivision 4, is not repealed in the 2013 legislative <br/>
<a id="pl.45.4"></a><var>45.4</var>session.<br/>
<br/>
<a id="bill.3.15.0"></a><a id="pl.45.5"></a><var>45.5</var>    Sec. 15. Minnesota Statutes 2012, section 353F.02, is amended by adding a subdivision <br/>
<a id="pl.45.6"></a><var>45.6</var>to read:<br/>
<a id="pl.45.7"></a><var>45.7</var>    Subd. 4a. <b>Privatized former public employer.</b> "Privatized former public employer" <br/>
<a id="pl.45.8"></a><var>45.8</var>means a medical facility or other employing unit formerly included in the definition of <br/>
<a id="pl.45.9"></a><var>45.9</var>governmental subdivision under section 353.01, subdivision 6, that is privatized and <br/>
<a id="pl.45.10"></a><var>45.10</var>whose employees are certified for participation under this chapter.<br/>
<a id="pl.45.11"></a><var>45.11</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.3.16.0"></a><a id="pl.45.12"></a><var>45.12</var>    Sec. 16. Minnesota Statutes 2012, section 353F.02, subdivision 6, is amended to read:<br/>
<a id="pl.45.13"></a><var>45.13</var>    Subd. 6. <b>Terminated medical facility or other</b><b> </b><b>Privatized former </b><b>public </b><br/>
<a id="pl.45.14"></a><var>45.14</var><b>employing unit</b><b> employee.</b> "Terminated medical facility or other (a) "Privatized former <br/>
<a id="pl.45.15"></a><var>45.15</var>public employing unit employee" means a person who:<br/>
<a id="pl.45.16"></a><var>45.16</var>(1) was employed by the privatized former public employer on the day before the <br/>
<a id="pl.45.17"></a><var>45.17</var>effective date by the medical facility or other public employing unit of privatization; or<br/>
<a id="pl.45.18"></a><var>45.18</var>(2) terminated employment with the medical facility or other privatized former <br/>
<a id="pl.45.19"></a><var>45.19</var>public employing unit employer on the day before the effective date; and<br/>
<a id="pl.45.20"></a><var>45.20</var>(3) was a participant in the general employees retirement plan of the Public <br/>
<a id="pl.45.21"></a><var>45.21</var>Employees Retirement Association at the time of termination of employment with the <br/>
<a id="pl.45.22"></a><var>45.22</var>medical facility or other privatized former public employing unit employer.<br/>
<a id="pl.45.23"></a><var>45.23</var>(b) Privatized former public employee does not mean a person who, on the day <br/>
<a id="pl.45.24"></a><var>45.24</var>before the effective date of privatization, was simultaneously employed with the privatized <br/>
<a id="pl.45.25"></a><var>45.25</var>former public employer and by a governmental subdivision under section 353.01, <br/>
<a id="pl.45.26"></a><var>45.26</var>subdivision 6, and who, after the effective date of privatization, continues to accrue <br/>
<a id="pl.45.27"></a><var>45.27</var>service credit under section 353.01, subdivision 16, through simultaneous employment <br/>
<a id="pl.45.28"></a><var>45.28</var>with a governmental subdivision.<br/>
<a id="pl.45.29"></a><var>45.29</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.3.17.0"></a><a id="pl.45.30"></a><var>45.30</var>    Sec. 17. Minnesota Statutes 2012, section 353F.025, subdivision 1, is amended to read:<br/>
<a id="pl.45.31"></a><var>45.31</var>    Subdivision 1. <b>Eligibility determination.</b> (a) The chief clerical officer of a <br/>
<a id="pl.45.32"></a><var>45.32</var>governmental subdivision may submit a resolution from the governing body to the <br/>
<a id="pl.46.1"></a><var>46.1</var>executive director of the Public Employees Retirement Association which supports <br/>
<a id="pl.46.2"></a><var>46.2</var>providing coverage under this chapter for employees of that governmental subdivision <br/>
<a id="pl.46.3"></a><var>46.3</var>who are privatized, and which states that the governing body will pay for actuarial <br/>
<a id="pl.46.4"></a><var>46.4</var>calculations, as further specified in paragraph (c).<br/>
<a id="pl.46.5"></a><var>46.5</var>    (b) The governing body must also provide a copy of any applicable purchase or <br/>
<a id="pl.46.6"></a><var>46.6</var>lease agreement and any other information requested by the executive director to allow the <br/>
<a id="pl.46.7"></a><var>46.7</var>executive director to verify that under the proposed employer change, the new employer <br/>
<a id="pl.46.8"></a><var>46.8</var>does not qualify as a governmental subdivision under section 
         <statute_ref>353.01, subdivision 6</statute_ref>, <br/>
<a id="pl.46.9"></a><var>46.9</var>making the employees ineligible for continued coverage as active members of the general <br/>
<a id="pl.46.10"></a><var>46.10</var>employees retirement plan of the Public Employees Retirement Association.<br/>
<a id="pl.46.11"></a><var>46.11</var>    (c) Following receipt of a resolution and a determination by the executive director <br/>
<a id="pl.46.12"></a><var>46.12</var>that the new employer is not a governmental subdivision, the executive director shall <br/>
<a id="pl.46.13"></a><var>46.13</var>direct the consulting actuary retained under section 
         <statute_ref>356.214</statute_ref> to determine whether the <br/>
<a id="pl.46.14"></a><var>46.14</var>general employees retirement plan of the Public Employees Retirement Association, if <br/>
<a id="pl.46.15"></a><var>46.15</var>coverage under this chapter is provided, is expected to receive a net gain or a net loss if <br/>
<a id="pl.46.16"></a><var>46.16</var>privatization occurs. A net gain is expected if the actuarial liability of the special benefit <br/>
<a id="pl.46.17"></a><var>46.17</var>coverage provided under this chapter, if extended to the applicable employees under the <br/>
<a id="pl.46.18"></a><var>46.18</var>privatization, is less than the actuarial gain otherwise to accrue to the plan. A net loss is <br/>
<a id="pl.46.19"></a><var>46.19</var>expected if the actuarial accrued liability of the special benefit coverage provided under <br/>
<a id="pl.46.20"></a><var>46.20</var>this chapter, if extended to the applicable employees under the privatization, is more than <br/>
<a id="pl.46.21"></a><var>46.21</var>the actuarial gain otherwise to accrue to the plan. The date of the actuarial calculations <br/>
<a id="pl.46.22"></a><var>46.22</var>used to make this determination must be within one year of the effective date, as defined <br/>
<a id="pl.46.23"></a><var>46.23</var>in section 
<statute_ref>353F.02, subdivision 3 of privatization</statute_ref>.<br/>
<a id="pl.46.24"></a><var>46.24</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.3.18.0"></a><a id="pl.46.25"></a><var>46.25</var>    Sec. 18. Minnesota Statutes 2012, section 353F.025, subdivision 2, is amended to read:<br/>
<a id="pl.46.26"></a><var>46.26</var>    Subd. 2. <b>Recommendation to legislature</b><b> Reporting privatizations</b><b>.</b> (a) If the <br/>
<a id="pl.46.27"></a><var>46.27</var>actuarial calculations under subdivision 1, paragraph (c), indicate that privatization can <br/>
<a id="pl.46.28"></a><var>46.28</var>be approved because a net gain to the general employees retirement plan of the Public <br/>
<a id="pl.46.29"></a><var>46.29</var>Employees Retirement Association is expected due to the privatization, or if paragraph (c)<br/>
<a id="pl.46.30"></a><var>46.30</var> (b) applies, the executive director shall, following acceptance of the actuarial calculations <br/>
<a id="pl.46.31"></a><var>46.31</var>by the board of trustees,  forward a recommendation notice and supporting documentation, <br/>
<a id="pl.46.32"></a><var>46.32</var>including a copy of the actuary's report and findings,  to the chair of the Legislative <br/>
<a id="pl.46.33"></a><var>46.33</var>Commission on Pensions and Retirement, the chair of the Governmental Operations, <br/>
<a id="pl.46.34"></a><var>46.34</var>Reform, Technology and Elections Committee of the house of representatives, the chair <br/>
<a id="pl.46.35"></a><var>46.35</var>of the State and Local Government Operations and Oversight Committee of the senate,<br/>
<a id="pl.47.1"></a><var>47.1</var> and the executive director of the Legislative Commission on Pensions and Retirement<br/>
<a id="pl.47.2"></a><var>47.2</var> and the chairs and the ranking minority members of the committees with jurisdiction over <br/>
<a id="pl.47.3"></a><var>47.3</var>governmental operations in the house of representatives and senate. The recommendation <br/>
<a id="pl.47.4"></a><var>47.4</var>must be in the form of an addition to the definition of "medical facility" under section <br/>
<a id="pl.47.5"></a><var>47.5</var><statute_ref>353F.02, subdivision 4</statute_ref>, or to "other public employing unit" under section 
<statute_ref>353F.02, <br/>
<a id="pl.47.6"></a><var>47.6</var>subdivision 5
</statute_ref>, whichever is applicable. The recommendation must be forwarded to the <br/>
<a id="pl.47.7"></a><var>47.7</var>legislature before January 15 for the recommendation to be considered in that year's <br/>
<a id="pl.47.8"></a><var>47.8</var>legislative session. The recommendation may be included as part of public pension <br/>
<a id="pl.47.9"></a><var>47.9</var>administrative legislation under section 
<statute_ref>356B.05</statute_ref>.<br/>
<a id="pl.47.10"></a><var>47.10</var>    (b) If a medical facility or other public employing unit listed under section 
<statute_ref>353F.02</statute_ref>, <br/>
<a id="pl.47.11"></a><var>47.11</var>subdivision 4 or 5, fails to privatize within one year of the final enactment date of the <br/>
<a id="pl.47.12"></a><var>47.12</var>legislation adding the entity to the applicable definition, its inclusion under this chapter is <br/>
<a id="pl.47.13"></a><var>47.13</var>voided, and the executive director shall include in the subsequent proposed legislation under <br/>
<a id="pl.47.14"></a><var>47.14</var>paragraph (a) a recommendation that the applicable entity be stricken from the definition.<br/>
<a id="pl.47.15"></a><var>47.15</var>(c) (b) If the calculations under subdivision 1, paragraph (c), indicate a net loss, the <br/>
<a id="pl.47.16"></a><var>47.16</var>executive director shall forward a recommendation recommend to the board of trustees <br/>
<a id="pl.47.17"></a><var>47.17</var>that the privatization be included as an addition under paragraph (a) approved if the chief <br/>
<a id="pl.47.18"></a><var>47.18</var>clerical officer of the applicable governmental subdivision submits a resolution from <br/>
<a id="pl.47.19"></a><var>47.19</var>the governing body specifying that a lump sum payment will be made to the executive <br/>
<a id="pl.47.20"></a><var>47.20</var>director Public Employees Retirement Association equal to the net loss, plus interest. <br/>
<a id="pl.47.21"></a><var>47.21</var>The interest must be computed using the applicable ultimate preretirement interest rate <br/>
<a id="pl.47.22"></a><var>47.22</var>assumption under section 
         <statute_ref>356.215, subdivision 8</statute_ref>, expressed as a monthly rate, from the <br/>
<a id="pl.47.23"></a><var>47.23</var>date of the actuarial valuation from which the actuarial accrued liability data was used to <br/>
<a id="pl.47.24"></a><var>47.24</var>determine the net loss in the actuarial study under subdivision 1, to the date of payment, <br/>
<a id="pl.47.25"></a><var>47.25</var>with annual compounding. Payment must be made on or after the effective date defined <br/>
<a id="pl.47.26"></a><var>47.26</var>under section 
<statute_ref>353F.02</statute_ref> of privatization.<br/>
<a id="pl.47.27"></a><var>47.27</var>(c) The Public Employees Retirement Association must maintain a list that includes <br/>
<a id="pl.47.28"></a><var>47.28</var>the names of all privatized former public employers in the association's comprehensive <br/>
<a id="pl.47.29"></a><var>47.29</var>annual financial report and on the association's Web site. Annually by March 1, the <br/>
<a id="pl.47.30"></a><var>47.30</var>association must submit to the executive director of the Legislative Commission on <br/>
<a id="pl.47.31"></a><var>47.31</var>Pensions and Retirement the names of any privatized former public employers approved <br/>
<a id="pl.47.32"></a><var>47.32</var>since the publication of the previous fiscal year's comprehensive annual financial report.<br/>
<a id="pl.47.33"></a><var>47.33</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.3.19.0"></a><a id="pl.48.1"></a><var>48.1</var>    Sec. 19. Minnesota Statutes 2012, section 353F.03, is amended to read:<br/>
<a id="pl.48.2"></a><var>48.2</var><b>353F.03 VESTING RULE FOR CERTAIN EMPLOYEES.</b><br/>
<a id="pl.48.3"></a><var>48.3</var>Notwithstanding any provision of chapter 353 to the contrary, a terminated medical <br/>
<a id="pl.48.4"></a><var>48.4</var>facility or other privatized former public employing unit employee is eligible to receive a <br/>
<a id="pl.48.5"></a><var>48.5</var>retirement annuity under section 
         <statute_ref>353.29</statute_ref> of the edition of Minnesota Statutes published <br/>
<a id="pl.48.6"></a><var>48.6</var>in the year before the year in which the privatization occurred, without regard to the <br/>
<a id="pl.48.7"></a><var>48.7</var>requirement specified in section 
         <statute_ref>353.01, subdivision 47</statute_ref>.<br/>
<a id="pl.48.8"></a><var>48.8</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.3.20.0"></a><a id="pl.48.9"></a><var>48.9</var>    Sec. 20. Minnesota Statutes 2012, section 353F.04, is amended to read:<br/>
<a id="pl.48.10"></a><var>48.10</var><b>353F.04 AUGMENTATION INTEREST RATES FOR </b><b>TERMINATED </b><br/>
<a id="pl.48.11"></a><var>48.11</var><b>MEDICAL OR OTHER</b><b> </b><b>PRIVATIZED FORMER </b><b>PUBLIC </b><b>EMPLOYING UNIT </b><br/>
<a id="pl.48.12"></a><var>48.12</var><b>FACILITY</b><b> EMPLOYEES.</b><br/>
<a id="pl.48.13"></a><var>48.13</var>    Subdivision 1. <b>Enhanced augmentation rates.</b> (a) The deferred annuity of a <br/>
<a id="pl.48.14"></a><var>48.14</var>terminated medical facility or other privatized former public employing unit employee is <br/>
<a id="pl.48.15"></a><var>48.15</var>subject to augmentation under section 
         <statute_ref>353.71, subdivision 2</statute_ref>, of the edition of Minnesota <br/>
<a id="pl.48.16"></a><var>48.16</var>Statutes published in the year in which the privatization occurred, except that the rate of <br/>
<a id="pl.48.17"></a><var>48.17</var>augmentation is as specified in this subdivision.<br/>
<a id="pl.48.18"></a><var>48.18</var>    (b) This paragraph applies if the legislation adding the medical facility or other <br/>
<a id="pl.48.19"></a><var>48.19</var>employing unit to section 
<statute_ref>353F.02</statute_ref>, subdivision 4 or 5, as applicable, effective date of <br/>
<a id="pl.48.20"></a><var>48.20</var>privatization was enacted before July 26, 2005, and became effective before January 1, <br/>
<a id="pl.48.21"></a><var>48.21</var>2008, for the Hutchinson Area Health Care on or before January 1, 2007, for all other <br/>
<a id="pl.48.22"></a><var>48.22</var>medical facilities and all other employing units and also applies to Hutchinson Area Health <br/>
<a id="pl.48.23"></a><var>48.23</var>Care with a privatization effective date of January 1, 2008. For a terminated medical <br/>
<a id="pl.48.24"></a><var>48.24</var>facility or other privatized former public employing unit employee, the augmentation <br/>
<a id="pl.48.25"></a><var>48.25</var>rate is 5.5 percent compounded annually until January 1 following the year in which the <br/>
<a id="pl.48.26"></a><var>48.26</var>person attains age 55. From that date to the effective date of retirement, the augmentation <br/>
<a id="pl.48.27"></a><var>48.27</var>rate is 7.5 percent compounded annually.<br/>
<a id="pl.48.28"></a><var>48.28</var>    (c) If paragraph (b) is not applicable, and if the effective date of the privatization is <br/>
<a id="pl.48.29"></a><var>48.29</var>before January 1, 2011, the augmentation rate is four percent compounded annually until <br/>
<a id="pl.48.30"></a><var>48.30</var>January 1, following the year in which the person attains age 55. From that date to the <br/>
<a id="pl.48.31"></a><var>48.31</var>effective date of retirement, the augmentation rate is six percent compounded annually.<br/>
<a id="pl.48.32"></a><var>48.32</var>(d) If the effective date of the privatization is after December 31, 2010, the applicable <br/>
<a id="pl.48.33"></a><var>48.33</var>augmentation rate depends on the result of computations specified in section 
         <statute_ref>353F.025, <br/>
<a id="pl.48.34"></a><var>48.34</var>subdivision 1
         </statute_ref>. If those computations indicate no loss or a net gain to the fund of the <br/>
<a id="pl.49.1"></a><var>49.1</var>general employees retirement plan of the Public Employees Retirement Association, the <br/>
<a id="pl.49.2"></a><var>49.2</var>augmentation rate is 2.0 percent compounded annually until the effective date of retirement. <br/>
<a id="pl.49.3"></a><var>49.3</var>If the computations under that subdivision indicate a net loss to the fund if a 2.0 percent <br/>
<a id="pl.49.4"></a><var>49.4</var>augmentation rate is used, but a net gain or no loss if a 1.0 percent rate is used, then the <br/>
<a id="pl.49.5"></a><var>49.5</var>augmentation rate is 1.0 percent compounded annually until the effective date of retirement.<br/>
<a id="pl.49.6"></a><var>49.6</var>(e) The term "effective date of the privatization" as used in this subdivision means <br/>
<a id="pl.49.7"></a><var>49.7</var>the "effective date" as defined in section 
<statute_ref>353F.02, subdivision 3</statute_ref>.<br/>
<a id="pl.49.8"></a><var>49.8</var>    Subd. 2. <b>Exceptions.</b> The increased augmentation rates specified in subdivision <br/>
<a id="pl.49.9"></a><var>49.9</var>1 do not apply if the terminated medical facility or other to a privatized former public <br/>
<a id="pl.49.10"></a><var>49.10</var>employing unit employee:<br/>
<a id="pl.49.11"></a><var>49.11</var>(1) beginning the first of the month in which the privatized former public employee <br/>
<a id="pl.49.12"></a><var>49.12</var>becomes covered again by a retirement plan enumerated in section 
         <statute_ref>356.30, subdivision 3</statute_ref>, if <br/>
<a id="pl.49.13"></a><var>49.13</var>the employee continues to be covered and accrues at least six months of credited service; or<br/>
<a id="pl.49.14"></a><var>49.14</var>(2) beginning the first of the month after a privatized former public employee <br/>
<a id="pl.49.15"></a><var>49.15</var>terminates service with the successor entity; or<br/>
<a id="pl.49.16"></a><var>49.16</var>(2) (3) if the person begins receipt of a retirement annuity while employed by <br/>
<a id="pl.49.17"></a><var>49.17</var>the employer which assumed operations of or purchased the medical facility or other<br/>
<a id="pl.49.18"></a><var>49.18</var> privatized former public employing unit or purchased the medical facility or other public <br/>
<a id="pl.49.19"></a><var>49.19</var>employing unit employer.<br/>
<a id="pl.49.20"></a><var>49.20</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.3.21.0"></a><a id="pl.49.21"></a><var>49.21</var>    Sec. 21. Minnesota Statutes 2012, section 353F.05, is amended to read:<br/>
<a id="pl.49.22"></a><var>49.22</var><b>353F.05 AUTHORIZATION FOR ADDITIONAL ALLOWABLE SERVICE </b><br/>
<a id="pl.49.23"></a><var>49.23</var><b>FOR EARLY RETIREMENT PURPOSES.</b><br/>
<a id="pl.49.24"></a><var>49.24</var>(a) For the purpose of determining eligibility for early retirement benefits provided <br/>
<a id="pl.49.25"></a><var>49.25</var>under section 
         <statute_ref>353.30, subdivision 1a</statute_ref>, of the edition of Minnesota Statutes published in <br/>
<a id="pl.49.26"></a><var>49.26</var>the year before the year in which the privatization occurred, and notwithstanding any <br/>
<a id="pl.49.27"></a><var>49.27</var>provision of chapter 353, to the contrary, the years of allowable service for a terminated <br/>
<a id="pl.49.28"></a><var>49.28</var>medical facility or other privatized former public employing unit employee who transfers <br/>
<a id="pl.49.29"></a><var>49.29</var>employment on the effective date of privatization and does not apply for a refund of <br/>
<a id="pl.49.30"></a><var>49.30</var>contributions under section 
         <statute_ref>353.34, subdivision 1</statute_ref>, of the edition of Minnesota Statutes <br/>
<a id="pl.49.31"></a><var>49.31</var>published in the year before the year in which the privatization occurred, or any similar <br/>
<a id="pl.49.32"></a><var>49.32</var>provision, includes service with the successor employer to the medical facility or other<br/>
<a id="pl.49.33"></a><var>49.33</var> privatized former public employing unit employer following the effective date. The <br/>
<a id="pl.49.34"></a><var>49.34</var>successor employer shall provide any reports that the executive director of the Public <br/>
<a id="pl.50.1"></a><var>50.1</var>Employees Retirement Association may reasonably request to permit calculation of <br/>
<a id="pl.50.2"></a><var>50.2</var>benefits.<br/>
<a id="pl.50.3"></a><var>50.3</var>(b) To be eligible for early retirement benefits under this section, the individual must <br/>
<a id="pl.50.4"></a><var>50.4</var>separate from service with the successor to the privatized former public employer to the <br/>
<a id="pl.50.5"></a><var>50.5</var>medical facility. The terminated eligible individual privatized former public employee, or <br/>
<a id="pl.50.6"></a><var>50.6</var>an individual authorized to act on behalf of that individual employee, may apply for an <br/>
<a id="pl.50.7"></a><var>50.7</var>annuity following application procedures under section 
         <statute_ref>353.29, subdivision 4</statute_ref>.<br/>
<a id="pl.50.8"></a><var>50.8</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.3.22.0"></a><a id="pl.50.9"></a><var>50.9</var>    Sec. 22. Minnesota Statutes 2012, section 353F.051, subdivision 1, is amended to read:<br/>
<a id="pl.50.10"></a><var>50.10</var>    Subdivision 1. <b>Eligibility.</b> A terminated medical facility or other privatized former <br/>
<a id="pl.50.11"></a><var>50.11</var>public employing unit employee who is totally and permanently disabled under Minnesota <br/>
<a id="pl.50.12"></a><var>50.12</var>Statutes 1998, section 
         <statute_ref>353.01, subdivision 19</statute_ref>, and who had a medically documented <br/>
<a id="pl.50.13"></a><var>50.13</var>preexisting condition of the disability before the termination of coverage, may apply for <br/>
<a id="pl.50.14"></a><var>50.14</var>a disability benefit.<br/>
<a id="pl.50.15"></a><var>50.15</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.3.23.0"></a><a id="pl.50.16"></a><var>50.16</var>    Sec. 23. Minnesota Statutes 2012, section 353F.052, is amended to read:<br/>
<a id="pl.50.17"></a><var>50.17</var><b>353F.052 APPLICATION OF SURVIVING SPOUSE, DEPENDENT CHILD </b><br/>
<a id="pl.50.18"></a><var>50.18</var><b>PROVISION.</b><br/>
<a id="pl.50.19"></a><var>50.19</var>Notwithstanding any provisions of law to the contrary, subdivisions within section <br/>
<statute_ref><a id="pl.50.20"></a><var>50.20</var>353.32
         </statute_ref> of the edition of Minnesota Statutes published in the year before the year in which <br/>
<a id="pl.50.21"></a><var>50.21</var>a privatization occurred, applicable to the surviving spouse or dependent children of a <br/>
<a id="pl.50.22"></a><var>50.22</var>former member as defined in section 
         <statute_ref>353.01, subdivision 7a</statute_ref>, apply to the survivors of a <br/>
<a id="pl.50.23"></a><var>50.23</var>terminated medical facility or other privatized former public employing unit employee.<br/>
<a id="pl.50.24"></a><var>50.24</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.3.24.0"></a><a id="pl.50.25"></a><var>50.25</var>    Sec. 24. <b>[353F.057] TERMINATION FROM SERVICE REQUIREMENT.</b><br/>
<a id="pl.50.26"></a><var>50.26</var>Upon termination of service from the privatized former public employer or any <br/>
<a id="pl.50.27"></a><var>50.27</var>successor entity after the effective date of privatization, a privatized former public <br/>
<a id="pl.50.28"></a><var>50.28</var>employee must separate from any employment relationship with the privatized former <br/>
<a id="pl.50.29"></a><var>50.29</var>public employer or any successor entity for at least 30 days to qualify to receive a <br/>
<a id="pl.50.30"></a><var>50.30</var>retirement annuity under this chapter.<br/>
<a id="pl.50.31"></a><var>50.31</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.3.25.0"></a><a id="pl.51.1"></a><var>51.1</var>    Sec. 25. Minnesota Statutes 2012, section 353F.06, is amended to read:<br/>
<a id="pl.51.2"></a><var>51.2</var><b>353F.06 APPLICATION OF REEMPLOYED ANNUITANT EARNINGS </b><br/>
<a id="pl.51.3"></a><var>51.3</var><b>LIMITATIONS.</b><br/>
<a id="pl.51.4"></a><var>51.4</var>If a privatized former public employee satisfies the separation from service <br/>
<a id="pl.51.5"></a><var>51.5</var>requirement in section 353F.057 and thereafter resumes employment with the privatized <br/>
<a id="pl.51.6"></a><var>51.6</var>former public employer or any successor entity or a governmental subdivision under <br/>
<a id="pl.51.7"></a><var>51.7</var>section 353.01, subdivision 6, the reemployed annuitant earnings limitations of section <br/>
<statute_ref><a id="pl.51.8"></a><var>51.8</var>353.37
         </statute_ref> apply to any service by a terminated medical facility or other public employing <br/>
<a id="pl.51.9"></a><var>51.9</var>unit employee as an employee of the successor employer to the medical facility.<br/>
<a id="pl.51.10"></a><var>51.10</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.3.26.0"></a><a id="pl.51.11"></a><var>51.11</var>    Sec. 26. Minnesota Statutes 2012, section 353F.07, is amended to read:<br/>
<a id="pl.51.12"></a><var>51.12</var><b>353F.07 EFFECT ON REFUND.</b><br/>
<a id="pl.51.13"></a><var>51.13</var>Notwithstanding any provision of chapter 353 to the contrary, terminated medical <br/>
<a id="pl.51.14"></a><var>51.14</var>facility or other privatized former public employing unit employees may receive a refund <br/>
<a id="pl.51.15"></a><var>51.15</var>of employee accumulated contributions plus interest as provided in section 
         <statute_ref>353.34, <br/>
<a id="pl.51.16"></a><var>51.16</var>subdivision 2
         </statute_ref>, at any time after the transfer of employment to the successor employer of <br/>
<a id="pl.51.17"></a><var>51.17</var>the terminated medical facility or other privatized former public employing unit employer. <br/>
<a id="pl.51.18"></a><var>51.18</var>If a terminated medical facility or other privatized former public employing unit employee <br/>
<a id="pl.51.19"></a><var>51.19</var>has received a refund from a pension plan listed in section 
         <statute_ref>356.30, subdivision 3</statute_ref>, the <br/>
<a id="pl.51.20"></a><var>51.20</var>person may not repay that refund unless the person again becomes a member of one of <br/>
<a id="pl.51.21"></a><var>51.21</var>those listed plans and complies with section 
         <statute_ref>356.30, subdivision 2</statute_ref>.<br/>
<a id="pl.51.22"></a><var>51.22</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.3.27.0"></a><a id="pl.51.23"></a><var>51.23</var>    Sec. 27. Minnesota Statutes 2012, section 353F.08, is amended to read:<br/>
<a id="pl.51.24"></a><var>51.24</var><b>353F.08 COUNSELING SERVICES.</b><br/>
<a id="pl.51.25"></a><var>51.25</var>The medical facility or other privatized former public employing unit employer and <br/>
<a id="pl.51.26"></a><var>51.26</var>the executive director of the Public Employees Retirement Association shall provide <br/>
<a id="pl.51.27"></a><var>51.27</var>terminated medical facility or other privatized former public employing unit employees <br/>
<a id="pl.51.28"></a><var>51.28</var>with counseling on their benefits available under the general employees retirement plan <br/>
<a id="pl.51.29"></a><var>51.29</var>of the Public Employees Retirement Association during the 90 days following a period <br/>
<a id="pl.51.30"></a><var>51.30</var>mutually agreed upon before or after the effective date of privatization.<br/>
<a id="pl.51.31"></a><var>51.31</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.3.28.0"></a><a id="pl.52.1"></a><var>52.1</var>    Sec. 28. Minnesota Statutes 2012, section 356.415, subdivision 1, is amended to read:<br/>
<a id="pl.52.2"></a><var>52.2</var>    Subdivision 1. <b>Annual postretirement adjustments; generally.</b> (a) Except as <br/>
<a id="pl.52.3"></a><var>52.3</var>otherwise provided in subdivision 1a, 1b, 1c, 1d, or 1e, retirement annuity, disability <br/>
<a id="pl.52.4"></a><var>52.4</var>benefit, or survivor benefit recipients of a covered retirement plan are entitled to a <br/>
<a id="pl.52.5"></a><var>52.5</var>postretirement adjustment annually on January 1, as follows:<br/>
<a id="pl.52.6"></a><var>52.6</var>(1) a postretirement increase of 2.5 percent must be applied each year, effective <br/>
<a id="pl.52.7"></a><var>52.7</var>January 1, to the monthly annuity or benefit of each annuitant or benefit recipient who has <br/>
<a id="pl.52.8"></a><var>52.8</var>been receiving an annuity or a benefit for at least 12 full months prior to the January 1 <br/>
<a id="pl.52.9"></a><var>52.9</var>increase; and<br/>
<a id="pl.52.10"></a><var>52.10</var>(2) for each annuitant or benefit recipient who has been receiving an annuity or a <br/>
<a id="pl.52.11"></a><var>52.11</var>benefit amount for at least one full month, an annual postretirement increase of 1/12 of 2.5 <br/>
<a id="pl.52.12"></a><var>52.12</var>percent for each month that the person has been receiving an annuity or benefit must be <br/>
<a id="pl.52.13"></a><var>52.13</var>applied, effective on January 1 following the calendar year in which the person has been <br/>
<a id="pl.52.14"></a><var>52.14</var>retired for less than 12 months.<br/>
<a id="pl.52.15"></a><var>52.15</var>(b) The increases provided by this subdivision commence on January 1, 2010.<br/>
<a id="pl.52.16"></a><var>52.16</var>(c) An increase in annuity or benefit payments under this section must be made <br/>
<a id="pl.52.17"></a><var>52.17</var>automatically unless written notice is filed by the annuitant or benefit recipient with the <br/>
<a id="pl.52.18"></a><var>52.18</var>executive director of the covered retirement plan requesting that the increase not be made.<br/>
<a id="pl.52.19"></a><var>52.19</var>(d) The retirement annuity payable to a person who retires before becoming eligible <br/>
<a id="pl.52.20"></a><var>52.20</var>for Social Security benefits and who has elected the optional payment as provided in <br/>
<a id="pl.52.21"></a><var>52.21</var>section 
<statute_ref>353.29, subdivision 6</statute_ref>, must be treated as the sum of a period certain retirement <br/>
<a id="pl.52.22"></a><var>52.22</var>annuity and a life retirement annuity for the purposes of any postretirement adjustment. <br/>
<a id="pl.52.23"></a><var>52.23</var>The period certain retirement annuity plus the life retirement annuity must be the <br/>
<a id="pl.52.24"></a><var>52.24</var>annuity amount payable until age 62 for section 
<statute_ref>353.29, subdivision 6</statute_ref>. A postretirement <br/>
<a id="pl.52.25"></a><var>52.25</var>adjustment granted on the period certain retirement annuity must terminate when the <br/>
<a id="pl.52.26"></a><var>52.26</var>period certain retirement annuity terminates.<br/>
<a id="pl.52.27"></a><var>52.27</var><b>EFFECTIVE DATE.</b>This section is effective January 1, 2014.<br/>
<br/>
<a id="bill.3.29.0"></a><a id="pl.52.28"></a><var>52.28</var>    Sec. 29. Minnesota Statutes 2012, section 356.415, subdivision 1b, is amended to read:<br/>
<a id="pl.52.29"></a><var>52.29</var>    Subd. 1b. <b>Annual postretirement adjustments; PERA; general employees </b><br/>
<a id="pl.52.30"></a><var>52.30</var><b>retirement plan and local government correctional retirement plan.</b> (a) Retirement <br/>
<a id="pl.52.31"></a><var>52.31</var>annuity, disability benefit, or survivor benefit recipients of the general employees <br/>
<a id="pl.52.32"></a><var>52.32</var>retirement plan of the Public Employees Retirement Association and the local government <br/>
<a id="pl.52.33"></a><var>52.33</var>correctional service retirement plan are entitled to a postretirement adjustment annually <br/>
<a id="pl.52.34"></a><var>52.34</var>on January 1, as follows:<br/>
<a id="pl.53.1"></a><var>53.1</var>(1) for January 1, 2011, and each successive January 1 until funding stability is <br/>
<a id="pl.53.2"></a><var>53.2</var>restored for the applicable retirement plan, a postretirement increase of one percent must <br/>
<a id="pl.53.3"></a><var>53.3</var>be applied each year, effective on January 1, to the monthly annuity or benefit amount of <br/>
<a id="pl.53.4"></a><var>53.4</var>each annuitant or benefit recipient who has been receiving an annuity or benefit for at least <br/>
<a id="pl.53.5"></a><var>53.5</var>12 full months as of the current June 30;<br/>
<a id="pl.53.6"></a><var>53.6</var>(2) for January 1, 2011, and each successive January 1 until funding stability is <br/>
<a id="pl.53.7"></a><var>53.7</var>restored for the applicable retirement plan, for each annuitant or benefit recipient who has <br/>
<a id="pl.53.8"></a><var>53.8</var>been receiving an annuity or a benefit for at least one full month, but less than 12 full <br/>
<a id="pl.53.9"></a><var>53.9</var>months as of the current June 30, an annual postretirement increase of 1/12 of one percent <br/>
<a id="pl.53.10"></a><var>53.10</var>for each month the person has been receiving an annuity or benefit must be applied;<br/>
<a id="pl.53.11"></a><var>53.11</var>(3) for each January 1 following the restoration of funding stability for the applicable <br/>
<a id="pl.53.12"></a><var>53.12</var>retirement plan, a postretirement increase of 2.5 percent must be applied each year, <br/>
<a id="pl.53.13"></a><var>53.13</var>effective January 1, to the monthly annuity or benefit amount of each annuitant or benefit <br/>
<a id="pl.53.14"></a><var>53.14</var>recipient who has been receiving an annuity or benefit for at least 12 full months as of <br/>
<a id="pl.53.15"></a><var>53.15</var>the current June 30; and<br/>
<a id="pl.53.16"></a><var>53.16</var>(4) for each January 1 following restoration of funding stability for the applicable <br/>
<a id="pl.53.17"></a><var>53.17</var>retirement plan, for each annuity or benefit recipient who has been receiving an annuity or <br/>
<a id="pl.53.18"></a><var>53.18</var>a benefit for at least one full month, but less than 12 full months as of the current June <br/>
<a id="pl.53.19"></a><var>53.19</var>30, an annual postretirement increase of 1/12 of 2.5 percent for each month the person <br/>
<a id="pl.53.20"></a><var>53.20</var>has been receiving an annuity or benefit must be applied.<br/>
<a id="pl.53.21"></a><var>53.21</var>(b) Funding stability is restored when the market value of assets of the applicable <br/>
<a id="pl.53.22"></a><var>53.22</var>retirement plan equals or exceeds 90 percent of the actuarial accrued liabilities of the <br/>
<a id="pl.53.23"></a><var>53.23</var>applicable plan in the most recent prior actuarial valuation prepared under section 
         <statute_ref>356.215</statute_ref> <br/>
<a id="pl.53.24"></a><var>53.24</var>and the standards for actuarial work by the approved actuary retained by the Public <br/>
<a id="pl.53.25"></a><var>53.25</var>Employees Retirement Association under section 
         <statute_ref>356.214</statute_ref>.<br/>
<a id="pl.53.26"></a><var>53.26</var>(c) If, after applying the increase as provided for in paragraph (a), clauses (3) <br/>
<a id="pl.53.27"></a><var>53.27</var>and (4), the market value of the applicable retirement plan is determined in the next <br/>
<a id="pl.53.28"></a><var>53.28</var>subsequent actuarial valuation prepared under section 
         <statute_ref>356.215</statute_ref> to be less than 90 percent <br/>
<a id="pl.53.29"></a><var>53.29</var>of the actuarial accrued liability of any of the applicable Public Employees Retirement <br/>
<a id="pl.53.30"></a><var>53.30</var>Association plans, the increase provided in paragraph (a), clauses (1) and (2), are to be <br/>
<a id="pl.53.31"></a><var>53.31</var>applied as of the next successive January until funding stability is again restored.<br/>
<a id="pl.53.32"></a><var>53.32</var>(d) An increase in annuity or benefit payments under this section must be made <br/>
<a id="pl.53.33"></a><var>53.33</var>automatically unless written notice is filed by the annuitant or benefit recipient with the <br/>
<a id="pl.53.34"></a><var>53.34</var>executive director of the Public Employees Retirement Association requesting that the <br/>
<a id="pl.53.35"></a><var>53.35</var>increase not be made.<br/>
<a id="pl.54.1"></a><var>54.1</var>(e) The retirement annuity payable to a person who retires before becoming eligible <br/>
<a id="pl.54.2"></a><var>54.2</var>for Social Security benefits and who has elected the optional payment, as provided in <br/>
<a id="pl.54.3"></a><var>54.3</var>section 
<statute_ref>353.29, subdivision 6</statute_ref>, must be treated as the sum of a period-certain retirement <br/>
<a id="pl.54.4"></a><var>54.4</var>annuity and a life retirement annuity for the purposes of any postretirement adjustment. <br/>
<a id="pl.54.5"></a><var>54.5</var>The period-certain retirement annuity plus the life retirement annuity must be the <br/>
<a id="pl.54.6"></a><var>54.6</var>annuity amount payable until age 62 for section 
<statute_ref>353.29, subdivision 6</statute_ref>. A postretirement <br/>
<a id="pl.54.7"></a><var>54.7</var>adjustment granted on the period-certain retirement annuity must terminate when the <br/>
<a id="pl.54.8"></a><var>54.8</var>period-certain retirement annuity terminates.<br/>
<a id="pl.54.9"></a><var>54.9</var><b>EFFECTIVE DATE.</b>This section is effective January 1, 2014.<br/>
<br/>
<a id="bill.3.30.0"></a><a id="pl.54.10"></a><var>54.10</var>    Sec. 30. Minnesota Statutes 2012, section 356.635, subdivision 1, is amended to read:<br/>
<a id="pl.54.11"></a><var>54.11</var>    Subdivision 1. <b>Retirement benefit commencement.</b> (a) The retirement benefit of a <br/>
<a id="pl.54.12"></a><var>54.12</var>member who has terminated employment must begin no later than the later of April 1 of <br/>
<a id="pl.54.13"></a><var>54.13</var>the calendar year following the calendar year that the member attains the federal minimum <br/>
<a id="pl.54.14"></a><var>54.14</var>distribution age under section 401(a)(9) of the Internal Revenue Code or April 1 of the <br/>
<a id="pl.54.15"></a><var>54.15</var>calendar year following the calendar year in which the member terminated employment.<br/>
<a id="pl.54.16"></a><var>54.16</var>(b) The consent requirements of section 411(a)(11) of the Internal Revenue Code do <br/>
<a id="pl.54.17"></a><var>54.17</var>not apply to the extent that a distribution is required to satisfy the requirements of section <br/>
<a id="pl.54.18"></a><var>54.18</var>401(a)(9) of the Internal Revenue Code.<br/>
<a id="pl.54.19"></a><var>54.19</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.3.31.0"></a><a id="pl.54.20"></a><var>54.20</var>    Sec. 31. <b> REPEALER.</b><br/>
<a id="pl.54.21"></a><var>54.21</var>(a) Minnesota Statutes 2012, sections 353F.02, subdivisions 4 and 5; and 353F.025, <br/>
<a id="pl.54.22"></a><var>54.22</var>subdivision 3, are repealed.<br/>
<a id="pl.54.23"></a><var>54.23</var>(b) Minnesota Statutes 2012, section 353.29, subdivision 6, is repealed.<br/>
<a id="pl.54.24"></a><var>54.24</var><b>EFFECTIVE DATE.</b>Paragraph (a) is effective the day following final enactment. <br/>
<a id="pl.54.25"></a><var>54.25</var>Paragraph (b) is effective January 1, 2014.<br/>
<br/>
<a id="bill.4.0.0"></a>

<a id="bill.4.1.0"></a><a id="pl.54.28"></a><var>54.28</var>    Section 1. Minnesota Statutes 2012, section 352.115, subdivision 3, is amended to read:<br/>
<a id="pl.54.29"></a><var>54.29</var>    Subd. 3. <b>Retirement annuity formula.</b> (a) This paragraph, in conjunction with <br/>
<a id="pl.54.30"></a><var>54.30</var>section 
         <statute_ref>352.116, subdivision 1</statute_ref>, applies to a person who became a covered employee or a <br/>
<a id="pl.54.31"></a><var>54.31</var>member of a pension fund listed in section 
         <statute_ref>356.30, subdivision 3</statute_ref>, before July 1, 1989, <br/>
<a id="pl.55.1"></a><var>55.1</var>unless paragraph (b), in conjunction with section 
         <statute_ref>352.116, subdivision 1a</statute_ref>, produces a <br/>
<a id="pl.55.2"></a><var>55.2</var>higher annuity amount, in which case paragraph (b) will apply applies. The employee's <br/>
<a id="pl.55.3"></a><var>55.3</var>average salary, as defined in section 
         <statute_ref>352.01, subdivision 14a</statute_ref>, multiplied by the 1.2 percent <br/>
<a id="pl.55.4"></a><var>55.4</var>specified in section 
<statute_ref>356.315, subdivision 1</statute_ref>, per year of allowable service for the first ten <br/>
<a id="pl.55.5"></a><var>55.5</var>years and the 1.7 percent specified in section 
<statute_ref>356.315, subdivision 2</statute_ref>, for each later year of <br/>
<a id="pl.55.6"></a><var>55.6</var>allowable service and pro rata for completed months less than a full year shall determine<br/>
<a id="pl.55.7"></a><var>55.7</var> determines the amount of the retirement annuity to which the employee is entitled.<br/>
<a id="pl.55.8"></a><var>55.8</var>(b) This paragraph applies to a person who has become at least 55 years old and <br/>
<a id="pl.55.9"></a><var>55.9</var>first became a covered employee after June 30, 1989, and to any other covered employee <br/>
<a id="pl.55.10"></a><var>55.10</var>who has become at least 55 years old and whose annuity amount, when calculated under <br/>
<a id="pl.55.11"></a><var>55.11</var>this paragraph and in conjunction with section 
         <statute_ref>352.116, subdivision 1a</statute_ref>, is higher than it is <br/>
<a id="pl.55.12"></a><var>55.12</var>when calculated under paragraph (a), in conjunction with section 
         <statute_ref>352.116, subdivision 1</statute_ref>. <br/>
<a id="pl.55.13"></a><var>55.13</var>The employee's average salary, as defined in section 
         <statute_ref>352.01, subdivision 14a</statute_ref>, multiplied <br/>
<a id="pl.55.14"></a><var>55.14</var>by the 1.7 percent specified in section 
<statute_ref>356.315, subdivision 2</statute_ref>, for each year of allowable <br/>
<a id="pl.55.15"></a><var>55.15</var>service and pro rata for months less than a full year shall determine determines the amount <br/>
<a id="pl.55.16"></a><var>55.16</var>of the retirement annuity to which the employee is entitled.<br/>
<br/>
<a id="bill.4.2.0"></a><a id="pl.55.17"></a><var>55.17</var>    Sec. 2. Minnesota Statutes 2012, section 352.87, subdivision 3, is amended to read:<br/>
<a id="pl.55.18"></a><var>55.18</var>    Subd. 3. <b>Retirement annuity formula.</b> A person specified in subdivision 1 is <br/>
<a id="pl.55.19"></a><var>55.19</var>entitled to receive a retirement annuity applicable for allowable service credit under this <br/>
<a id="pl.55.20"></a><var>55.20</var>section calculated by multiplying the employee's average salary, as defined in section <br/>
<statute_ref><a id="pl.55.21"></a><var>55.21</var>352.01, subdivision 14a
         </statute_ref>, by the 2.0 percent specified in section 
<statute_ref>356.315, subdivision 2a</statute_ref>,<br/>
<a id="pl.55.22"></a><var>55.22</var> for each year or portions of a year of allowable service credit. No reduction for retirement <br/>
<a id="pl.55.23"></a><var>55.23</var>before the normal retirement age, as specified in section 
         <statute_ref>352.01, subdivision 25</statute_ref>, applies <br/>
<a id="pl.55.24"></a><var>55.24</var>to service to which this section applies.<br/>
<br/>
<a id="bill.4.3.0"></a><a id="pl.55.25"></a><var>55.25</var>    Sec. 3. Minnesota Statutes 2012, section 352.93, subdivision 2, is amended to read:<br/>
<a id="pl.55.26"></a><var>55.26</var>    Subd. 2. <b>Calculating monthly annuity.</b> The monthly annuity under this section <br/>
<a id="pl.55.27"></a><var>55.27</var>must be determined by multiplying the average monthly salary by the number of years, or <br/>
<a id="pl.55.28"></a><var>55.28</var>completed months, of covered correctional service by the 2.4 percent specified in section <br/>
<a id="pl.55.29"></a><var>55.29</var><statute_ref>356.315, subdivision 5</statute_ref> if employed as a correctional state employee before July 1, 2010, <br/>
<a id="pl.55.30"></a><var>55.30</var>or 2.2 percent if employed as a correctional state employee after June 30, 2010.<br/>
<br/>
<a id="bill.4.4.0"></a><a id="pl.55.31"></a><var>55.31</var>    Sec. 4. Minnesota Statutes 2012, section 352.95, subdivision 1, is amended to read:<br/>
<a id="pl.55.32"></a><var>55.32</var>    Subdivision 1. <b>Duty disability; computation of benefit.</b> A covered correctional <br/>
<a id="pl.55.33"></a><var>55.33</var>employee who is determined to have a duty disability, physical or psychological, as <br/>
<a id="pl.56.1"></a><var>56.1</var>defined under section 
         <statute_ref>352.01, subdivision 17b</statute_ref>, is entitled to a duty disability benefit. The <br/>
<a id="pl.56.2"></a><var>56.2</var>duty disability benefit must be based on covered correctional service only. The duty <br/>
<a id="pl.56.3"></a><var>56.3</var>disability benefit amount is 50 percent of the average salary defined in section 
         <statute_ref>352.93</statute_ref>, <br/>
<a id="pl.56.4"></a><var>56.4</var>plus an additional 2.4 percent equal to that specified in section 
<statute_ref>356.315, subdivision 5</statute_ref>, if <br/>
<a id="pl.56.5"></a><var>56.5</var>employed as a correctional state employee before July 1, 2010, or 2.2 percent if employed <br/>
<a id="pl.56.6"></a><var>56.6</var>as a correctional state employee after June 30, 2010, for each year of covered correctional <br/>
<a id="pl.56.7"></a><var>56.7</var>service in excess of 20 years, ten months, prorated for completed months.<br/>
<br/>
<a id="bill.4.5.0"></a><a id="pl.56.8"></a><var>56.8</var>    Sec. 5. Minnesota Statutes 2012, section 352B.08, subdivision 2, is amended to read:<br/>
<a id="pl.56.9"></a><var>56.9</var>    Subd. 2. <b>Normal retirement annuity.</b> The annuity must be paid in monthly <br/>
<a id="pl.56.10"></a><var>56.10</var>installments. The annuity shall be is equal to the amount determined by multiplying the <br/>
<a id="pl.56.11"></a><var>56.11</var>average monthly salary of the member by the 3.0 percent specified in section 
<statute_ref>356.315, <br/>
<a id="pl.56.12"></a><var>56.12</var>subdivision 6
</statute_ref>, for each year and pro rata for completed months of service.<br/>
<br/>
<a id="bill.4.6.0"></a><a id="pl.56.13"></a><var>56.13</var>    Sec. 6. Minnesota Statutes 2012, section 352B.10, subdivision 1, is amended to read:<br/>
<a id="pl.56.14"></a><var>56.14</var>    Subdivision 1. <b>Duty disability.</b> A member who is determined to qualify for duty <br/>
<a id="pl.56.15"></a><var>56.15</var>disability as defined in section 
         <statute_ref>352B.011, subdivision 7</statute_ref>, is entitled to receive a duty <br/>
<a id="pl.56.16"></a><var>56.16</var>disability benefit while disabled. The benefits must be paid monthly. The duty disability <br/>
<a id="pl.56.17"></a><var>56.17</var>benefit is an amount equal to the member's average monthly salary multiplied by 60 percent, <br/>
<a id="pl.56.18"></a><var>56.18</var>plus an additional 3.0 percent equal to that specified in section 
<statute_ref>356.315, subdivision 6</statute_ref>, for <br/>
<a id="pl.56.19"></a><var>56.19</var>each year and pro rata for completed months of service in excess of 20 years, if any.<br/>
<br/>
<a id="bill.4.7.0"></a><a id="pl.56.20"></a><var>56.20</var>    Sec. 7. Minnesota Statutes 2012, section 353.29, subdivision 3, is amended to read:<br/>
<a id="pl.56.21"></a><var>56.21</var>    Subd. 3. <b>Retirement annuity formula.</b> (a) This paragraph, in conjunction with <br/>
<a id="pl.56.22"></a><var>56.22</var>section 
         <statute_ref>353.30, subdivisions 1a, 1b, and 1c</statute_ref>, applies to any member who first became a <br/>
<a id="pl.56.23"></a><var>56.23</var>public employee or a member of a pension fund listed in section 
         <statute_ref>356.30, subdivision 3</statute_ref>, <br/>
<a id="pl.56.24"></a><var>56.24</var>before July 1, 1989, unless paragraph (b), in conjunction with section 
         <statute_ref>353.30, subdivision <br/>
<a id="pl.56.25"></a><var>56.25</var>5
         </statute_ref>, produces a higher annuity amount, in which case paragraph (b) will apply applies. The <br/>
<a id="pl.56.26"></a><var>56.26</var>average salary as defined in section 
         <statute_ref>353.01, subdivision 17a</statute_ref>, multiplied by the 2.2 percent <br/>
<a id="pl.56.27"></a><var>56.27</var>specified in section 
<statute_ref>356.315, subdivision 3</statute_ref>, for each year of allowable service for the <br/>
<a id="pl.56.28"></a><var>56.28</var>first ten years and thereafter by the 2.7 percent specified in section 
<statute_ref>356.315, subdivision <br/>
<a id="pl.56.29"></a><var>56.29</var>4
</statute_ref>, per year of allowable service and completed months less than a full year for a basic <br/>
<a id="pl.56.30"></a><var>56.30</var>member, and the 1.2 percent specified in section 
<statute_ref>356.315, subdivision 1</statute_ref>, for each year <br/>
<a id="pl.56.31"></a><var>56.31</var>of allowable service for the first ten years and thereafter by the 1.7 percent specified in <br/>
<a id="pl.56.32"></a><var>56.32</var>section 
<statute_ref>356.315, subdivision 2</statute_ref>, per year of allowable service and completed months less <br/>
<a id="pl.57.1"></a><var>57.1</var>than a full year for a coordinated member shall determine determines the amount of the <br/>
<a id="pl.57.2"></a><var>57.2</var>normal retirement annuity.<br/>
<a id="pl.57.3"></a><var>57.3</var>    (b) This paragraph applies to a member who has become at least 55 years old and first <br/>
<a id="pl.57.4"></a><var>57.4</var>became a public employee after June 30, 1989, and to any other member whose annuity <br/>
<a id="pl.57.5"></a><var>57.5</var>amount, when calculated under this paragraph and in conjunction with section 
         <statute_ref>353.30, <br/>
<a id="pl.57.6"></a><var>57.6</var>subdivision 5
         </statute_ref>, is higher than it is when calculated under paragraph (a), in conjunction with <br/>
<a id="pl.57.7"></a><var>57.7</var>section 
         <statute_ref>353.30, subdivisions 1a, 1b, and 1c</statute_ref>. The average salary, as defined in section <br/>
<statute_ref><a id="pl.57.8"></a><var>57.8</var>353.01, subdivision 17a
         </statute_ref>, multiplied by the 2.7 percent specified in section 
<statute_ref>356.315, <br/>
<a id="pl.57.9"></a><var>57.9</var>subdivision 4
</statute_ref>, for each year of allowable service and completed months less than a full <br/>
<a id="pl.57.10"></a><var>57.10</var>year for a basic member and the 1.7 percent specified in section 
<statute_ref>356.315, subdivision 2</statute_ref>,<br/>
<a id="pl.57.11"></a><var>57.11</var> per year of allowable service and completed months less than a full year for a coordinated <br/>
<a id="pl.57.12"></a><var>57.12</var>member, shall determine determines the amount of the normal retirement annuity.<br/>
<br/>
<a id="bill.4.8.0"></a><a id="pl.57.13"></a><var>57.13</var>    Sec. 8. Minnesota Statutes 2012, section 353.651, subdivision 3, is amended to read:<br/>
<a id="pl.57.14"></a><var>57.14</var>    Subd. 3. <b>Retirement annuity formula.</b> The average salary as defined in section <br/>
<statute_ref><a id="pl.57.15"></a><var>57.15</var>353.01, subdivision 17a
         </statute_ref>, multiplied by the 3.0 percent specified in section 
<statute_ref>356.315, <br/>
<a id="pl.57.16"></a><var>57.16</var>subdivision 6
</statute_ref>, per year of allowable service determines the amount of the normal <br/>
<a id="pl.57.17"></a><var>57.17</var>retirement annuity. If the member has earned allowable service for performing services <br/>
<a id="pl.57.18"></a><var>57.18</var>other than those of a police officer or firefighter, the annuity representing that service must <br/>
<a id="pl.57.19"></a><var>57.19</var>be computed under sections 
         <statute_ref>353.29</statute_ref> and 
         <statute_ref>353.30</statute_ref>.<br/>
<br/>
<a id="bill.4.9.0"></a><a id="pl.57.20"></a><var>57.20</var>    Sec. 9. Minnesota Statutes 2012, section 353.656, subdivision 1, is amended to read:<br/>
<a id="pl.57.21"></a><var>57.21</var>    Subdivision 1. <b>Duty disability; computation of benefits.</b> (a) A member of the <br/>
<a id="pl.57.22"></a><var>57.22</var>police and fire plan, other than a firefighter covered by section 
         <statute_ref>353.6511</statute_ref>, or a police <br/>
<a id="pl.57.23"></a><var>57.23</var>officer covered by section 
         <statute_ref>353.6512</statute_ref>, who is determined to qualify for duty disability as <br/>
<a id="pl.57.24"></a><var>57.24</var>defined in section 
         <statute_ref>353.01</statute_ref>, subdivision 41, shall is entitled to receive disability benefits <br/>
<a id="pl.57.25"></a><var>57.25</var>during the period of such disability in an amount equal to 60 percent of the average salary <br/>
<a id="pl.57.26"></a><var>57.26</var>as defined in section 
         <statute_ref>353.01, subdivision 17a</statute_ref>, plus an additional percentage specified <br/>
<a id="pl.57.27"></a><var>57.27</var>under section 
<statute_ref>356.315</statute_ref>, subdivision 6, 3.0 percent of that average salary for each year <br/>
<a id="pl.57.28"></a><var>57.28</var>of service in excess of 20 years.<br/>
<a id="pl.57.29"></a><var>57.29</var>    (b) To be eligible for a benefit under paragraph (a), the member must have:<br/>
<a id="pl.57.30"></a><var>57.30</var>    (1) not met the requirements for a retirement annuity under section 
         <statute_ref>353.651</statute_ref>, <br/>
<a id="pl.57.31"></a><var>57.31</var>subdivision 1; or<br/>
<a id="pl.57.32"></a><var>57.32</var>    (2) met the requirements under that subdivision, but does not have at least 20 years <br/>
<a id="pl.57.33"></a><var>57.33</var>of allowable service credit.<br/>
<a id="pl.58.1"></a><var>58.1</var>    (c) If paragraph (b), clause (2), applies, the disability benefit must be paid for a <br/>
<a id="pl.58.2"></a><var>58.2</var>period of 60 months from the disability benefit accrual date and at the end of that period <br/>
<a id="pl.58.3"></a><var>58.3</var>is subject to provisions of subdivision 5a.<br/>
<a id="pl.58.4"></a><var>58.4</var>    (d) If the disability under this subdivision occurs before the member has at least five <br/>
<a id="pl.58.5"></a><var>58.5</var>years of allowable service credit in the police and fire plan, the disability benefit must be <br/>
<a id="pl.58.6"></a><var>58.6</var>computed on the average salary from which deductions were made for contribution to <br/>
<a id="pl.58.7"></a><var>58.7</var>the police and fire fund.<br/>
<br/>
<a id="bill.4.10.0"></a><a id="pl.58.8"></a><var>58.8</var>    Sec. 10. Minnesota Statutes 2012, section 353.656, subdivision 1a, is amended to read:<br/>
<a id="pl.58.9"></a><var>58.9</var>    Subd. 1a. <b>Total and permanent duty disability; computation of benefits.</b> (a) A <br/>
<a id="pl.58.10"></a><var>58.10</var>member of the police and fire plan, other than a firefighter covered by section 
         <statute_ref>353.6511</statute_ref>, or <br/>
<a id="pl.58.11"></a><var>58.11</var>a police officer covered by section 
         <statute_ref>353.6512</statute_ref>, whose disabling condition is determined <br/>
<a id="pl.58.12"></a><var>58.12</var>to be a duty disability that is also a permanent and total disability as defined in section <br/>
<statute_ref><a id="pl.58.13"></a><var>58.13</var>353.01
         </statute_ref>, subdivision 19, is entitled to receive, for life, disability benefits in an amount <br/>
<a id="pl.58.14"></a><var>58.14</var>equal to 60 percent of the average salary as defined in section 
         <statute_ref>353.01, subdivision 17a</statute_ref>, <br/>
<a id="pl.58.15"></a><var>58.15</var>plus an additional 3.0 percent specified in section 
<statute_ref>356.315, subdivision 6</statute_ref>, of that average <br/>
<a id="pl.58.16"></a><var>58.16</var>salary for each year of service in excess of 20 years.<br/>
<a id="pl.58.17"></a><var>58.17</var>    (b) A disability benefit payable under paragraph (a) is subject to eligibility review <br/>
<a id="pl.58.18"></a><var>58.18</var>under section 
         <statute_ref>353.33, subdivision 6</statute_ref>, but the review may be waived if the executive <br/>
<a id="pl.58.19"></a><var>58.19</var>director receives a written statement from the association's medical advisor that no <br/>
<a id="pl.58.20"></a><var>58.20</var>improvement can be expected in the member's disabling condition that was the basis for <br/>
<a id="pl.58.21"></a><var>58.21</var>payment of the benefit under paragraph (a). A member receiving a disability benefit <br/>
<a id="pl.58.22"></a><var>58.22</var>under this subdivision who is found to no longer be permanently and totally disabled as <br/>
<a id="pl.58.23"></a><var>58.23</var>defined under section 
         <statute_ref>353.01, subdivision 19</statute_ref>, but continues to meet the definition for <br/>
<a id="pl.58.24"></a><var>58.24</var>receipt of a duty disability under section 
         <statute_ref>353.01, subdivision 41</statute_ref>, is subject to subdivision <br/>
<a id="pl.58.25"></a><var>58.25</var>1 upon written notice from the association's medical advisor that the person is no longer <br/>
<a id="pl.58.26"></a><var>58.26</var>considered permanently and totally disabled.<br/>
<a id="pl.58.27"></a><var>58.27</var>    (c) If a member approved for disability benefits under this subdivision dies before <br/>
<a id="pl.58.28"></a><var>58.28</var>attaining normal retirement age as defined in section 
         <statute_ref>353.01, subdivision 37</statute_ref>, paragraph <br/>
<a id="pl.58.29"></a><var>58.29</var>(b), or within 60 months of the effective date of the disability, whichever is later, <br/>
<a id="pl.58.30"></a><var>58.30</var>the surviving spouse is entitled to receive a survivor benefit under section 
         <statute_ref>353.657</statute_ref>, <br/>
<a id="pl.58.31"></a><var>58.31</var>subdivision 2, paragraph (a), clause (1), if the death is the direct result of the disabling <br/>
<a id="pl.58.32"></a><var>58.32</var>condition for which disability benefits were approved, or section 
         <statute_ref>353.657, subdivision <br/>
</statute_ref><a id="pl.58.33"></a><var>58.33</var>2, paragraph (a), clause (2), if the death is not directly related to the disabling condition <br/>
<a id="pl.58.34"></a><var>58.34</var>for which benefits were approved under this subdivision.<br/>
<a id="pl.59.1"></a><var>59.1</var>    (d) If the election of an actuarial equivalent optional annuity is not made at the time <br/>
<a id="pl.59.2"></a><var>59.2</var>the permanent and total disability benefit accrues, an election must be made within 90 <br/>
<a id="pl.59.3"></a><var>59.3</var>days before the member attains normal retirement age as defined under section 
         <statute_ref>353.01</statute_ref>, <br/>
<a id="pl.59.4"></a><var>59.4</var>subdivision 37, paragraph (b), or having collected total and permanent disability benefits <br/>
<a id="pl.59.5"></a><var>59.5</var>for 60 months, whichever is later. If a member receiving disability benefits who has <br/>
<a id="pl.59.6"></a><var>59.6</var>dependent children dies, subdivision 6a, paragraph (c), applies.<br/>
<br/>
<a id="bill.4.11.0"></a><a id="pl.59.7"></a><var>59.7</var>    Sec. 11. Minnesota Statutes 2012, section 353.656, subdivision 3a, is amended to read:<br/>
<a id="pl.59.8"></a><var>59.8</var>    Subd. 3a. <b>Total and permanent regular disability; computation of benefits.</b> (a) <br/>
<a id="pl.59.9"></a><var>59.9</var>A member of the police and fire plan, other than a firefighter covered by section 
         <statute_ref>353.6511</statute_ref>, <br/>
<a id="pl.59.10"></a><var>59.10</var>or a police officer covered by section 
         <statute_ref>353.6512</statute_ref>, whose disabling condition is determined <br/>
<a id="pl.59.11"></a><var>59.11</var>to be a regular disability under section 
         <statute_ref>353.01, subdivision 46</statute_ref>, that is also a permanent <br/>
<a id="pl.59.12"></a><var>59.12</var>and total disability as defined in section 
         <statute_ref>353.01, subdivision 19</statute_ref>, is entitled to receive, for <br/>
<a id="pl.59.13"></a><var>59.13</var>life, a disability benefit in an amount equal to 45 percent of the average salary as defined <br/>
<a id="pl.59.14"></a><var>59.14</var>in section 
         <statute_ref>353.01, subdivision 17a</statute_ref>, plus an additional 3.0 percent specified in section <br/>
<a id="pl.59.15"></a><var>59.15</var><statute_ref>356.315</statute_ref>, subdivision 6, of that average salary for each year of service in excess of 15 years.<br/>
<a id="pl.59.16"></a><var>59.16</var>    (b) A disability benefit payable under paragraph (a) is subject to eligibility review <br/>
<a id="pl.59.17"></a><var>59.17</var>under section 
         <statute_ref>353.33, subdivision 6</statute_ref>, but the review may be waived if the executive <br/>
<a id="pl.59.18"></a><var>59.18</var>director receives a written statement from the association's medical advisor that no <br/>
<a id="pl.59.19"></a><var>59.19</var>improvement can be expected in the member's disabling condition that was the basis for <br/>
<a id="pl.59.20"></a><var>59.20</var>payment of the benefit under paragraph (a). A member receiving a disability benefit under <br/>
<a id="pl.59.21"></a><var>59.21</var>this subdivision who is found to no longer be permanently and totally disabled as defined <br/>
<a id="pl.59.22"></a><var>59.22</var>under section 
         <statute_ref>353.01, subdivision 19</statute_ref>, but continues to meet the definition for receipt <br/>
<a id="pl.59.23"></a><var>59.23</var>of a regular disability under section 
         <statute_ref>353.01, subdivision 46</statute_ref>, is subject to subdivision 3 <br/>
<a id="pl.59.24"></a><var>59.24</var>upon written notice from the association's medical advisor that the person is no longer <br/>
<a id="pl.59.25"></a><var>59.25</var>considered permanently and totally disabled.<br/>
<a id="pl.59.26"></a><var>59.26</var>    (c) A member approved for disability benefits under this subdivision may elect <br/>
<a id="pl.59.27"></a><var>59.27</var>to receive a normal disability benefit or an actuarial equivalent optional annuity. If the <br/>
<a id="pl.59.28"></a><var>59.28</var>election of an actuarial equivalent optional annuity is not made at the time the total and <br/>
<a id="pl.59.29"></a><var>59.29</var>permanent disability benefit accrues, an election must be made within 90 days before <br/>
<a id="pl.59.30"></a><var>59.30</var>the member attains normal retirement age as defined in section 
         <statute_ref>353.01, subdivision 37</statute_ref>, <br/>
<a id="pl.59.31"></a><var>59.31</var>paragraph (b), or having collected disability benefits for 60 months, whichever is later. <br/>
<a id="pl.59.32"></a><var>59.32</var>No surviving spouse benefits are payable if the member dies during the period in which <br/>
<a id="pl.59.33"></a><var>59.33</var>a normal total and permanent disability benefit is being paid. If a member receiving <br/>
<a id="pl.59.34"></a><var>59.34</var>disability benefits who has dependent children dies, subdivision 6a, paragraph (c), applies.<br/>
<br/>
<a id="bill.4.12.0"></a><a id="pl.60.1"></a><var>60.1</var>    Sec. 12. Minnesota Statutes 2012, section 353E.04, subdivision 3, is amended to read:<br/>
<a id="pl.60.2"></a><var>60.2</var>    Subd. 3. <b>Annuity amount.</b> (a) The average salary as defined in subdivision 2, <br/>
<a id="pl.60.3"></a><var>60.3</var>multiplied by the 1.9 percent specified in section 
<statute_ref>356.315, subdivision 5a</statute_ref>, for each year of <br/>
<a id="pl.60.4"></a><var>60.4</var>allowable service, determines the amount of the normal retirement annuity.<br/>
<a id="pl.60.5"></a><var>60.5</var>(b) If a person has earned allowable service in the general employees retirement plan <br/>
<a id="pl.60.6"></a><var>60.6</var>of the Public Employees Retirement Association or the public employees police and fire <br/>
<a id="pl.60.7"></a><var>60.7</var>fund prior to retirement plan before participation under this chapter, the retirement annuity <br/>
<a id="pl.60.8"></a><var>60.8</var>representing such service must be computed in accordance with the formula specified in <br/>
<a id="pl.60.9"></a><var>60.9</var>sections 
         <statute_ref>353.29</statute_ref> and 
         <statute_ref>353.30</statute_ref> or 
         <statute_ref>353.651</statute_ref>, whichever applies.<br/>
<br/>
<a id="bill.4.13.0"></a><a id="pl.60.10"></a><var>60.10</var>    Sec. 13. Minnesota Statutes 2012, section 353E.06, subdivision 1, is amended to read:<br/>
<a id="pl.60.11"></a><var>60.11</var>    Subdivision 1. <b>Duty disability qualification requirements.</b> A local government <br/>
<a id="pl.60.12"></a><var>60.12</var>correctional employee who is determined to qualify for a duty disability as defined in <br/>
<a id="pl.60.13"></a><var>60.13</var>section 
         <statute_ref>353E.001, subdivision 1</statute_ref>, is entitled to a disability benefit. The disability benefit <br/>
<a id="pl.60.14"></a><var>60.14</var>must be based on covered service under this chapter only and is an amount equal to 47.5 <br/>
<a id="pl.60.15"></a><var>60.15</var>percent of the average salary defined in section 
         <statute_ref>353E.04, subdivision 2</statute_ref>, plus an additional <br/>
<a id="pl.60.16"></a><var>60.16</var>1.9 percent equal to that specified in section 
<statute_ref>356.315, subdivision 5a</statute_ref>, for each year of <br/>
<a id="pl.60.17"></a><var>60.17</var>covered service under this chapter in excess of 25 years.<br/>
<br/>
<a id="bill.4.14.0"></a><a id="pl.60.18"></a><var>60.18</var>    Sec. 14. Minnesota Statutes 2012, section 354.44, subdivision 6, is amended to read:<br/>
<a id="pl.60.19"></a><var>60.19</var>    Subd. 6. <b>Computation of formula program retirement annuity.</b> (a) The formula <br/>
<a id="pl.60.20"></a><var>60.20</var>retirement annuity must be computed in accordance with the applicable provisions of the <br/>
<a id="pl.60.21"></a><var>60.21</var>formulas stated in paragraph (b) or (d) on the basis of each member's average salary under <br/>
<a id="pl.60.22"></a><var>60.22</var>section 
         <statute_ref>354.05, subdivision 13a</statute_ref>, for the period of the member's formula service credit.<br/>
<a id="pl.60.23"></a><var>60.23</var>    (b) This paragraph, in conjunction with paragraph (c), applies to a person who first <br/>
<a id="pl.60.24"></a><var>60.24</var>became a member of the association or a member of a pension fund listed in section <br/>
<statute_ref><a id="pl.60.25"></a><var>60.25</var>356.30, subdivision 3
         </statute_ref>, before July 1, 1989, unless paragraph (d), in conjunction with <br/>
<a id="pl.60.26"></a><var>60.26</var>paragraph (e), produces a higher annuity amount, in which case paragraph (d) applies. The <br/>
<a id="pl.60.27"></a><var>60.27</var>average salary as defined in section 
         <statute_ref>354.05, subdivision 13a</statute_ref>, multiplied by the following <br/>
<a id="pl.60.28"></a><var>60.28</var>percentages per year of formula service credit shall determine the amount of the annuity to <br/>
<a id="pl.60.29"></a><var>60.29</var>which the member qualifying therefor is entitled for service rendered before July 1, 2006:<br/>
<table>
<col width="50px"/>
<col width="2"/>
<col width="17.5"/>
<col width="1.5"/>
<col width="20"/>
<col width="1.5"/>
<col width="17.5"/>
<tr>
<td><a id="pl.60.30"></a><var>60.30</var><br/>
</td>
<td align="left" valign="top"></td>
<td align="left" valign="top"></td>
<td align="center" valign="top"></td>
<td align="left" valign="top">Coordinated Member<br/>
</td>
<td align="left" valign="top"></td>
<td align="left" valign="top">Basic Member<br/>
</td>
</tr>
<tr>
<td><a id="pl.60.31"></a><var>60.31</var><br/>
<a id="pl.60.32"></a><var>60.32</var><br/>
<a id="pl.60.33"></a><var>60.33</var><br/>
</td>
<td align="left" valign="top"></td>
<td align="left" valign="top">Each year of service <br/>
                  		during first ten<br/>
</td>
<td align="left" valign="top"></td>
<td align="left" valign="top">the 1.2 percent specified in <br/>
section 
<statute_ref>356.315</statute_ref>, subdivision <br/>
1, per year<br/>
</td>
<td align="left" valign="top"></td>
<td align="left" valign="top">the 2.2 percent specified <br/>
in section 
<statute_ref>356.315</statute_ref>, <br/>
subdivision 3, per year<br/>
</td>
</tr>
<tr>
<td><a id="pl.60.34"></a><var>60.34</var><br/>
<a id="pl.60.35"></a><var>60.35</var><br/>
<a id="pl.60.36"></a><var>60.36</var><br/>
</td>
<td align="left" valign="top"></td>
<td align="left" valign="top">Each year of service <br/>
                  		thereafter<br/>
</td>
<td align="left" valign="top"></td>
<td align="left" valign="top">the 1.7 percent specified in <br/>
section 
<statute_ref>356.315</statute_ref>, subdivision <br/>
2, per year<br/>
</td>
<td align="left" valign="top"></td>
<td align="left" valign="top">the 2.7 percent specified <br/>
in section 
<statute_ref>356.315</statute_ref>, <br/>
subdivision 4, per year<br/>
</td>
</tr>
</table><a id="pl.61.1"></a><var>61.1</var>    For service rendered on or after July 1, 2006, the average salary as defined in section <br/>
<statute_ref><a id="pl.61.2"></a><var>61.2</var>354.05
         </statute_ref>, subdivision 13a, multiplied by the following percentages per year of service credit, <br/>
<a id="pl.61.3"></a><var>61.3</var>determines the amount the annuity to which the member qualifying therefor is entitled:<br/>
<table>
<col width="50px"/>
<col width="2"/>
<col width="17.5"/>
<col width="1.5"/>
<col width="20"/>
<col width="1.5"/>
<col width="17.5"/>
<tr>
<td><a id="pl.61.4"></a><var>61.4</var><br/>
</td>
<td align="left" valign="top"></td>
<td align="left" valign="top"></td>
<td align="center" valign="top"></td>
<td align="left" valign="top">Coordinated Member<br/>
</td>
<td align="left" valign="top"></td>
<td align="left" valign="top">Basic Member<br/>
</td>
</tr>
<tr>
<td><a id="pl.61.5"></a><var>61.5</var><br/>
<a id="pl.61.6"></a><var>61.6</var><br/>
<a id="pl.61.7"></a><var>61.7</var><br/>
</td>
<td align="left" valign="top"></td>
<td align="left" valign="top">Each year of service <br/>
                  		during first ten<br/>
</td>
<td align="left" valign="top"></td>
<td align="left" valign="top">the 1.4 percent specified in <br/>
section 
<statute_ref>356.315</statute_ref>, subdivision <br/>
1a, per year<br/>
</td>
<td align="left" valign="top"></td>
<td align="left" valign="top">the 2.2 percent specified <br/>
in section 
<statute_ref>356.315</statute_ref>, <br/>
subdivision 3, per year<br/>
</td>
</tr>
<tr>
<td><a id="pl.61.8"></a><var>61.8</var><br/>
<a id="pl.61.9"></a><var>61.9</var><br/>
<a id="pl.61.10"></a><var>61.10</var><br/>
</td>
<td align="left" valign="top"></td>
<td align="left" valign="top">Each year of service after <br/>
                  		ten years of service<br/>
</td>
<td align="left" valign="top"></td>
<td align="left" valign="top">the 1.9 percent specified in <br/>
section 
<statute_ref>356.315</statute_ref>, subdivision <br/>
2b, per year<br/>
</td>
<td align="left" valign="top"></td>
<td align="left" valign="top">the 2.7 percent specified <br/>
in section 
<statute_ref>356.315</statute_ref>, <br/>
subdivision 4, per year<br/>
</td>
</tr>
</table><a id="pl.61.11"></a><var>61.11</var>    (c)(i) This paragraph applies only to a person who first became a member of the <br/>
<a id="pl.61.12"></a><var>61.12</var>association or a member of a pension fund listed in section 
         <statute_ref>356.30, subdivision 3</statute_ref>, before <br/>
<a id="pl.61.13"></a><var>61.13</var>July 1, 1989, and whose annuity is higher when calculated under paragraph (b), in <br/>
<a id="pl.61.14"></a><var>61.14</var>conjunction with this paragraph than when calculated under paragraph (d), in conjunction <br/>
<a id="pl.61.15"></a><var>61.15</var>with paragraph (e).<br/>
<a id="pl.61.16"></a><var>61.16</var>    (ii) Where any member retires prior to normal retirement age under a formula <br/>
<a id="pl.61.17"></a><var>61.17</var>annuity, the member shall be paid a retirement annuity in an amount equal to the normal <br/>
<a id="pl.61.18"></a><var>61.18</var>annuity provided in paragraph (b) reduced by one-quarter of one percent for each month <br/>
<a id="pl.61.19"></a><var>61.19</var>that the member is under normal retirement age at the time of retirement except that for <br/>
<a id="pl.61.20"></a><var>61.20</var>any member who has 30 or more years of allowable service credit, the reduction shall be <br/>
<a id="pl.61.21"></a><var>61.21</var>applied only for each month that the member is under age 62.<br/>
<a id="pl.61.22"></a><var>61.22</var>    (iii) Any member whose attained age plus credited allowable service totals 90 years <br/>
<a id="pl.61.23"></a><var>61.23</var>is entitled, upon application, to a retirement annuity in an amount equal to the normal <br/>
<a id="pl.61.24"></a><var>61.24</var>annuity provided in paragraph (b), without any reduction by reason of early retirement.<br/>
<a id="pl.61.25"></a><var>61.25</var>    (d) This paragraph applies to a member who has become at least 55 years old and <br/>
<a id="pl.61.26"></a><var>61.26</var>first became a member of the association after June 30, 1989, and to any other member <br/>
<a id="pl.61.27"></a><var>61.27</var>who has become at least 55 years old and whose annuity amount when calculated <br/>
<a id="pl.61.28"></a><var>61.28</var>under this paragraph and in conjunction with paragraph (e), is higher than it is when <br/>
<a id="pl.61.29"></a><var>61.29</var>calculated under paragraph (b), in conjunction with paragraph (c). For a basic member, <br/>
<a id="pl.61.30"></a><var>61.30</var>the average salary, as defined in section 
         <statute_ref>354.05, subdivision 13a</statute_ref>, multiplied by the 2.7 <br/>
<a id="pl.61.31"></a><var>61.31</var>percent specified by section 
<statute_ref>356.315, subdivision 4</statute_ref>, for each year of service for a basic <br/>
<a id="pl.61.32"></a><var>61.32</var>member shall determine determines the amount of the retirement annuity to which the <br/>
<a id="pl.61.33"></a><var>61.33</var>basic member is entitled. The annuity of a basic member who was a member of the <br/>
<a id="pl.61.34"></a><var>61.34</var>former Minneapolis Teachers Retirement Fund Association as of June 30, 2006, must be <br/>
<a id="pl.61.35"></a><var>61.35</var>determined according to the annuity formula under the articles of incorporation of the <br/>
<a id="pl.61.36"></a><var>61.36</var>former Minneapolis Teachers Retirement Fund Association in effect as of that date. For a <br/>
<a id="pl.61.37"></a><var>61.37</var>coordinated member, the average salary, as defined in section 
         <statute_ref>354.05</statute_ref>, subdivision 13a, <br/>
<a id="pl.61.38"></a><var>61.38</var>multiplied by the 1.7 percent specified in section 
<statute_ref>356.315</statute_ref>, subdivision 2, for each year of <br/>
<a id="pl.62.1"></a><var>62.1</var>service rendered before July 1, 2006, and by the 1.9 percent specified in section 
<statute_ref>356.315</statute_ref>, <br/>
<a id="pl.62.2"></a><var>62.2</var>subdivision 2b, for each year of service rendered on or after July 1, 2006, determines the <br/>
<a id="pl.62.3"></a><var>62.3</var>amount of the retirement annuity to which the coordinated member is entitled.<br/>
<a id="pl.62.4"></a><var>62.4</var>    (e) This paragraph applies to a person who has become at least 55 years old and first <br/>
<a id="pl.62.5"></a><var>62.5</var>becomes a member of the association after June 30, 1989, and to any other member who <br/>
<a id="pl.62.6"></a><var>62.6</var>has become at least 55 years old and whose annuity is higher when calculated under <br/>
<a id="pl.62.7"></a><var>62.7</var>paragraph (d) in conjunction with this paragraph than when calculated under paragraph <br/>
<a id="pl.62.8"></a><var>62.8</var>(b), in conjunction with paragraph (c). An employee who retires under the formula annuity <br/>
<a id="pl.62.9"></a><var>62.9</var>before the normal retirement age shall be paid the normal annuity provided in paragraph <br/>
<a id="pl.62.10"></a><var>62.10</var>(d) reduced so that the reduced annuity is the actuarial equivalent of the annuity that would <br/>
<a id="pl.62.11"></a><var>62.11</var>be payable to the employee if the employee deferred receipt of the annuity and the annuity <br/>
<a id="pl.62.12"></a><var>62.12</var>amount were augmented at an annual rate of three percent compounded annually from the <br/>
<a id="pl.62.13"></a><var>62.13</var>day the annuity begins to accrue until the normal retirement age if the employee became <br/>
<a id="pl.62.14"></a><var>62.14</var>an employee before July 1, 2006, and at 2.5 percent compounded annually if the employee <br/>
<a id="pl.62.15"></a><var>62.15</var>becomes an employee after June 30, 2006.<br/>
<a id="pl.62.16"></a><var>62.16</var>    (f) No retirement annuity is payable to a former employee with a salary that exceeds <br/>
<a id="pl.62.17"></a><var>62.17</var>95 percent of the governor's salary unless and until the salary figures used in computing <br/>
<a id="pl.62.18"></a><var>62.18</var>the highest five successive years average salary under paragraph (a) have been audited by <br/>
<a id="pl.62.19"></a><var>62.19</var>the Teachers Retirement Association and determined by the executive director to comply <br/>
<a id="pl.62.20"></a><var>62.20</var>with the requirements and limitations of section 
         <statute_ref>354.05</statute_ref>, subdivisions 35 and 35a.<br/>
<br/>
<a id="bill.4.15.0"></a><a id="pl.62.21"></a><var>62.21</var>    Sec. 15. Minnesota Statutes 2012, section 354A.31, subdivision 4, is amended to read:<br/>
<a id="pl.62.22"></a><var>62.22</var>    Subd. 4. <b>Computation of normal coordinated retirement annuity; St. Paul </b><br/>
<a id="pl.62.23"></a><var>62.23</var><b>fund.</b> (a) This subdivision applies to the coordinated program of the St. Paul Teachers <br/>
<a id="pl.62.24"></a><var>62.24</var>Retirement Fund Association.<br/>
<a id="pl.62.25"></a><var>62.25</var>(b) The normal coordinated retirement annuity is an amount equal to a retiring <br/>
<a id="pl.62.26"></a><var>62.26</var>coordinated member's average salary under section 
         <statute_ref>354A.011, subdivision 7a</statute_ref>, multiplied <br/>
<a id="pl.62.27"></a><var>62.27</var>by the retirement annuity formula percentage.<br/>
<a id="pl.62.28"></a><var>62.28</var>(c) This paragraph, in conjunction with subdivision 6, applies to a person who first <br/>
<a id="pl.62.29"></a><var>62.29</var>became a member or a member in a pension fund listed in section 
         <statute_ref>356.30, subdivision 3</statute_ref>, <br/>
<a id="pl.62.30"></a><var>62.30</var>before July 1, 1989, unless paragraph (d), in conjunction with subdivision 7, produces a <br/>
<a id="pl.62.31"></a><var>62.31</var>higher annuity amount, in which case paragraph (d) will apply. The retirement annuity <br/>
<a id="pl.62.32"></a><var>62.32</var>formula percentage for purposes of this paragraph is the 1.2 percent specified in section <br/>
<a id="pl.62.33"></a><var>62.33</var><statute_ref>356.315, subdivision 1</statute_ref>, per year for each year of coordinated service for the first ten <br/>
<a id="pl.62.34"></a><var>62.34</var>years and the 1.7 percent specified in section 
<statute_ref>356.315, subdivision 2</statute_ref>, for each year of <br/>
<a id="pl.62.35"></a><var>62.35</var>coordinated service thereafter.<br/>
<a id="pl.63.1"></a><var>63.1</var>(d) This paragraph applies to a person who has become at least 55 years old and who <br/>
<a id="pl.63.2"></a><var>63.2</var>first becomes a member after June 30, 1989, and to any other member who has become <br/>
<a id="pl.63.3"></a><var>63.3</var>at least 55 years old and whose annuity amount, when calculated under this paragraph <br/>
<a id="pl.63.4"></a><var>63.4</var>and in conjunction with subdivision 7 is higher than it is when calculated under paragraph <br/>
<a id="pl.63.5"></a><var>63.5</var>(c), in conjunction with the provisions of subdivision 6. The retirement annuity formula <br/>
<a id="pl.63.6"></a><var>63.6</var>percentage for purposes of this paragraph is the 1.7 percent specified in section 
<statute_ref>356.315, <br/>
<a id="pl.63.7"></a><var>63.7</var>subdivision 2
</statute_ref>, for each year of coordinated service.<br/>
<br/>
<a id="bill.4.16.0"></a><a id="pl.63.8"></a><var>63.8</var>    Sec. 16. Minnesota Statutes 2012, section 354A.31, subdivision 4a, is amended to read:<br/>
<a id="pl.63.9"></a><var>63.9</var>    Subd. 4a. <b>Computation of normal coordinated retirement annuity; Duluth </b><br/>
<a id="pl.63.10"></a><var>63.10</var><b>fund.</b> (a) This subdivision applies to the new law coordinated program of the Duluth <br/>
<a id="pl.63.11"></a><var>63.11</var>Teachers Retirement Fund Association.<br/>
<a id="pl.63.12"></a><var>63.12</var>(b) The normal coordinated retirement annuity is an amount equal to a retiring <br/>
<a id="pl.63.13"></a><var>63.13</var>coordinated member's average salary under section 
         <statute_ref>354A.011, subdivision 7a</statute_ref>, multiplied <br/>
<a id="pl.63.14"></a><var>63.14</var>by the retirement annuity formula percentage.<br/>
<a id="pl.63.15"></a><var>63.15</var>(c) This paragraph, in conjunction with subdivision 6, applies to a person who first <br/>
<a id="pl.63.16"></a><var>63.16</var>became a member or a member in a pension fund listed in section 
         <statute_ref>356.30, subdivision 3</statute_ref>, <br/>
<a id="pl.63.17"></a><var>63.17</var>before July 1, 1989, unless paragraph (d), in conjunction with subdivision 7, produces a <br/>
<a id="pl.63.18"></a><var>63.18</var>higher annuity amount, in which case paragraph (d) applies. The retirement annuity <br/>
<a id="pl.63.19"></a><var>63.19</var>formula percentage for purposes of this paragraph is the 1.2 percent specified in section <br/>
<a id="pl.63.20"></a><var>63.20</var><statute_ref>356.315, subdivision 1</statute_ref>, per year for each year of coordinated service for the first ten <br/>
<a id="pl.63.21"></a><var>63.21</var>years and the 1.7 percent specified in section 
<statute_ref>356.315, subdivision 2</statute_ref>, for each subsequent <br/>
<a id="pl.63.22"></a><var>63.22</var>year of coordinated service.<br/>
<a id="pl.63.23"></a><var>63.23</var>(d) This paragraph applies to a person who is at least 55 years old and who first <br/>
<a id="pl.63.24"></a><var>63.24</var>becomes a member after June 30, 1989, and to any other member who is at least 55 years <br/>
<a id="pl.63.25"></a><var>63.25</var>old and whose annuity amount, when calculated under this paragraph and in conjunction <br/>
<a id="pl.63.26"></a><var>63.26</var>with subdivision 7, is higher than it is when calculated under paragraph (c) in conjunction <br/>
<a id="pl.63.27"></a><var>63.27</var>with subdivision 6. The retirement annuity formula percentage for purposes of this <br/>
<a id="pl.63.28"></a><var>63.28</var>paragraph is the 1.7 percent specified in section 
<statute_ref>356.315, subdivision 2</statute_ref>, for each year of <br/>
<a id="pl.63.29"></a><var>63.29</var>coordinated service.<br/>
<br/>
<a id="bill.4.17.0"></a><a id="pl.63.30"></a><var>63.30</var>    Sec. 17. Minnesota Statutes 2012, section 356.30, subdivision 1, is amended to read:<br/>
<a id="pl.63.31"></a><var>63.31</var>    Subdivision 1. <b>Eligibility; computation of annuity.</b> (a) Notwithstanding any <br/>
<a id="pl.63.32"></a><var>63.32</var>provisions of the laws governing the retirement plans enumerated in subdivision 3, a <br/>
<a id="pl.63.33"></a><var>63.33</var>person who has met the qualifications of paragraph (b) may elect to receive a retirement <br/>
<a id="pl.63.34"></a><var>63.34</var>annuity from each enumerated retirement plan in which the person has at least one-half <br/>
<a id="pl.64.1"></a><var>64.1</var>year of allowable service, based on the allowable service in each plan, subject to the <br/>
<a id="pl.64.2"></a><var>64.2</var>provisions of paragraph (c).<br/>
<a id="pl.64.3"></a><var>64.3</var>(b) A person may receive, upon retirement, a retirement annuity from each <br/>
<a id="pl.64.4"></a><var>64.4</var>enumerated retirement plan in which the person has at least one-half year of allowable <br/>
<a id="pl.64.5"></a><var>64.5</var>service, and augmentation of a deferred annuity calculated at the appropriate rate under <br/>
<a id="pl.64.6"></a><var>64.6</var>the laws governing each public pension plan or fund named in subdivision 3, based on <br/>
<a id="pl.64.7"></a><var>64.7</var>the date of the person's initial entry into public employment from the date the person <br/>
<a id="pl.64.8"></a><var>64.8</var>terminated all public service if:<br/>
<a id="pl.64.9"></a><var>64.9</var>(1) the person has allowable service in any two or more of the enumerated plans;<br/>
<a id="pl.64.10"></a><var>64.10</var>(2) the person has sufficient allowable service in total that equals or exceeds the <br/>
<a id="pl.64.11"></a><var>64.11</var>applicable service credit vesting requirement of the retirement plan with the longest <br/>
<a id="pl.64.12"></a><var>64.12</var>applicable service credit vesting requirement; and<br/>
<a id="pl.64.13"></a><var>64.13</var>(3) the person has not begun to receive an annuity from any enumerated plan or the <br/>
<a id="pl.64.14"></a><var>64.14</var>person has made application for benefits from each applicable plan and the effective <br/>
<a id="pl.64.15"></a><var>64.15</var>dates of the retirement annuity with each plan under which the person chooses to receive <br/>
<a id="pl.64.16"></a><var>64.16</var>an annuity are within a one-year period.<br/>
<a id="pl.64.17"></a><var>64.17</var>(c) The retirement annuity from each plan must be based upon the allowable service, <br/>
<a id="pl.64.18"></a><var>64.18</var>accrual rates, and average salary in the applicable plan except as further specified or <br/>
<a id="pl.64.19"></a><var>64.19</var>modified in the following clauses:<br/>
<a id="pl.64.20"></a><var>64.20</var>(1) the laws governing annuities must be the law in effect on the date of termination <br/>
<a id="pl.64.21"></a><var>64.21</var>from the last period of public service under a covered retirement plan with which the person <br/>
<a id="pl.64.22"></a><var>64.22</var>earned a minimum of one-half year of allowable service credit during that employment;<br/>
<a id="pl.64.23"></a><var>64.23</var>(2) the "average salary" on which the annuity from each covered plan in which <br/>
<a id="pl.64.24"></a><var>64.24</var>the employee has credit in a formula plan must be based on the employee's highest five <br/>
<a id="pl.64.25"></a><var>64.25</var>successive years of covered salary during the entire service in covered plans;<br/>
<a id="pl.64.26"></a><var>64.26</var>(3) the accrual rates to be used by each plan must be those percentages prescribed by <br/>
<a id="pl.64.27"></a><var>64.27</var>each plan's formula as continued for the respective years of allowable service from one <br/>
<a id="pl.64.28"></a><var>64.28</var>plan to the next, recognizing all previous allowable service with the other covered plans;<br/>
<a id="pl.64.29"></a><var>64.29</var>(4) the allowable service in all the plans must be combined in determining eligibility <br/>
<a id="pl.64.30"></a><var>64.30</var>for and the application of each plan's provisions in respect to reduction in the annuity <br/>
<a id="pl.64.31"></a><var>64.31</var>amount for retirement prior to normal retirement age; and<br/>
<a id="pl.64.32"></a><var>64.32</var>(5) the annuity amount payable for any allowable service under a nonformula plan <br/>
<a id="pl.64.33"></a><var>64.33</var>of a covered plan must not be affected, but such service and covered salary must be used <br/>
<a id="pl.64.34"></a><var>64.34</var>in the above calculation.<br/>
<a id="pl.64.35"></a><var>64.35</var>(d) This section does not apply to any person whose final termination from the last <br/>
<a id="pl.64.36"></a><var>64.36</var>public service under a covered plan was before May 1, 1975.<br/>
<a id="pl.65.1"></a><var>65.1</var>(e) For the purpose of computing annuities under this section, the accrual rates <br/>
<a id="pl.65.2"></a><var>65.2</var>used by any covered plan, except the public employees police and fire plan, the judges <br/>
<a id="pl.65.3"></a><var>65.3</var>retirement fund, and the State Patrol retirement plan, must not exceed the 2.7 percent <br/>
<a id="pl.65.4"></a><var>65.4</var>specified in section 
<statute_ref>356.315, subdivision 4</statute_ref>, per year of service for any year of service or <br/>
<a id="pl.65.5"></a><var>65.5</var>fraction thereof. The formula percentage used by the judges retirement fund must not <br/>
<a id="pl.65.6"></a><var>65.6</var>exceed the percentage rate specified in section 
<statute_ref>356.315, subdivision 8</statute_ref>, 3.2 percent per <br/>
<a id="pl.65.7"></a><var>65.7</var>year of service for any year of service or fraction thereof. The accrual rate used by the <br/>
<a id="pl.65.8"></a><var>65.8</var>public employees police and fire plan and the State Patrol retirement plan must not exceed <br/>
<a id="pl.65.9"></a><var>65.9</var>the percentage rate specified in section 
<statute_ref>356.315, subdivision 6</statute_ref>, 3.0 percent per year of <br/>
<a id="pl.65.10"></a><var>65.10</var>service for any year of service or fraction thereof. The accrual rate or rates used by the <br/>
<a id="pl.65.11"></a><var>65.11</var>legislators retirement plan must not exceed 2.5 percent, but this limit does not apply to the <br/>
<a id="pl.65.12"></a><var>65.12</var>adjustment provided under section 
         <statute_ref>3A.02, subdivision 1</statute_ref>, paragraph (c).<br/>
<a id="pl.65.13"></a><var>65.13</var>(f) Any period of time for which a person has credit in more than one of the covered <br/>
<a id="pl.65.14"></a><var>65.14</var>plans must be used only once for the purpose of determining total allowable service.<br/>
<a id="pl.65.15"></a><var>65.15</var>(g) If the period of duplicated service credit is more than one-half year, or the person <br/>
<a id="pl.65.16"></a><var>65.16</var>has credit for more than one-half year, with each of the plans, each plan must apply its <br/>
<a id="pl.65.17"></a><var>65.17</var>formula to a prorated service credit for the period of duplicated service based on a fraction <br/>
<a id="pl.65.18"></a><var>65.18</var>of the salary on which deductions were paid to that fund for the period divided by the total <br/>
<a id="pl.65.19"></a><var>65.19</var>salary on which deductions were paid to all plans for the period.<br/>
<a id="pl.65.20"></a><var>65.20</var>(h) If the period of duplicated service credit is less than one-half year, or when <br/>
<a id="pl.65.21"></a><var>65.21</var>added to other service credit with that plan is less than one-half year, the service credit <br/>
<a id="pl.65.22"></a><var>65.22</var>must be ignored and a refund of contributions made to the person in accord with that <br/>
<a id="pl.65.23"></a><var>65.23</var>plan's refund provisions.<br/>
<br/>
<a id="bill.4.18.0"></a><a id="pl.65.24"></a><var>65.24</var>    Sec. 18. Minnesota Statutes 2012, section 356.315, subdivision 9, is amended to read:<br/>
<a id="pl.65.25"></a><var>65.25</var>    Subd. 9. <b>Future benefit accrual rate increases.</b> After January 2, 1998, benefit <br/>
<a id="pl.65.26"></a><var>65.26</var>accrual rate increases under this section 352.115, subdivision 3; 352.87, subdivision <br/>
<a id="pl.65.27"></a><var>65.27</var>3; 352.93, subdivision 3; 352.95, subdivision 1; 352B.08, subdivision 2; 352B.10, <br/>
<a id="pl.65.28"></a><var>65.28</var>subdivision 1; 353.29, subdivision 3; 353.651, subdivision 3; 353.656, subdivision <br/>
<a id="pl.65.29"></a><var>65.29</var>1, 1a, or 3a; 353E.04, subdivision 3; 353E.06, subdivision 1; 354.44, subdivision 6; <br/>
<a id="pl.65.30"></a><var>65.30</var>354A.31, subdivision 4 or 4a; 356.30, subdivision 1; 490.121, subdivision 22; or 490.124, <br/>
<a id="pl.65.31"></a><var>65.31</var>subdivision 1, must apply only to allowable service or formula service rendered after the <br/>
<a id="pl.65.32"></a><var>65.32</var>effective date of the benefit accrual rate increase.<br/>
<br/>
<a id="bill.4.19.0"></a><a id="pl.65.33"></a><var>65.33</var>    Sec. 19. Minnesota Statutes 2012, section 490.121, subdivision 22, is amended to read:<br/>
<a id="pl.66.1"></a><var>66.1</var>    Subd. 22. <b>Service credit limit.</b> "Service credit limit" means the greater of: (1) 24 <br/>
<a id="pl.66.2"></a><var>66.2</var>years of allowable service under this chapter; or (2) for judges with allowable service <br/>
<a id="pl.66.3"></a><var>66.3</var>rendered before July 1, 1980, the number of years of allowable service under chapter 490, <br/>
<a id="pl.66.4"></a><var>66.4</var>which, when multiplied by the percentage listed in section 
<statute_ref>356.315, subdivision 7</statute_ref> 2.7 or 8<br/>
<a id="pl.66.5"></a><var>66.5</var> 3.2, whichever is applicable to each year of service, equals 76.8.<br/>
<br/>
<a id="bill.4.20.0"></a><a id="pl.66.6"></a><var>66.6</var>    Sec. 20. Minnesota Statutes 2012, section 490.124, subdivision 1, is amended to read:<br/>
<a id="pl.66.7"></a><var>66.7</var>    Subdivision 1. <b>Basic retirement annuity.</b> (a) Except as qualified hereinafter from <br/>
<a id="pl.66.8"></a><var>66.8</var>and after the mandatory retirement date, the normal retirement date, the early retirement <br/>
<a id="pl.66.9"></a><var>66.9</var>date, or one year from the disability retirement date, as the case may be, a retiring judge is <br/>
<a id="pl.66.10"></a><var>66.10</var>eligible to receive a retirement annuity from the judges' retirement fund.<br/>
<a id="pl.66.11"></a><var>66.11</var>    (b) The retirement annuity is an amount equal to: (1) the 2.7 percent specified in <br/>
<a id="pl.66.12"></a><var>66.12</var>section 
<statute_ref>356.315, subdivision 7</statute_ref>, multiplied by the judge's final average compensation with <br/>
<a id="pl.66.13"></a><var>66.13</var>that result then multiplied by the number of years and fractions of years of allowable <br/>
<a id="pl.66.14"></a><var>66.14</var>service rendered before July 1, 1980; plus (2) the 3.2 percent specified in section 
<statute_ref>356.315, <br/>
<a id="pl.66.15"></a><var>66.15</var>subdivision 8
</statute_ref>, multiplied by the judge's final average compensation with that result then <br/>
<a id="pl.66.16"></a><var>66.16</var>multiplied by the number of years and fractions of years of allowable service rendered <br/>
<a id="pl.66.17"></a><var>66.17</var>after June 30, 1980.<br/>
<a id="pl.66.18"></a><var>66.18</var>    (c) Service that exceeds the service credit limit in section 
         <statute_ref>490.121, subdivision 22</statute_ref>, <br/>
<a id="pl.66.19"></a><var>66.19</var>must be excluded in calculating the retirement annuity, but the compensation earned by <br/>
<a id="pl.66.20"></a><var>66.20</var>the judge during this period of judicial service must be used in determining a judge's final <br/>
<a id="pl.66.21"></a><var>66.21</var>average compensation and calculating the retirement annuity.<br/>
<br/>
<a id="bill.4.21.0"></a><a id="pl.66.22"></a><var>66.22</var>    Sec. 21. <b> REPEALER.</b><br/>
<a id="pl.66.23"></a><var>66.23</var>Minnesota Statutes 2012, section 356.315, subdivisions 1, 1a, 2, 2a, 2b, 3, 4, 5, 5a, <br/>
<a id="pl.66.24"></a><var>66.24</var>6, 7, and 8, are repealed.<br/>
<br/>
<a id="bill.4.22.0"></a><a id="pl.66.25"></a><var>66.25</var>    Sec. 22. <b>EFFECTIVE DATE.</b><br/>
<a id="pl.66.26"></a><var>66.26</var>Sections 1 to 21 are effective the day following final enactment.<br/>
<br/>
<a id="bill.5.0.0"></a>

<a id="pl.66.29"></a><var>66.29</var><b>FIREFIGHTER RELIEF ASSOCIATION LAWS</b><br/>

<a id="bill.5.1.0"></a><a id="pl.66.30"></a><var>66.30</var>    Section 1. Minnesota Statutes 2012, section 6.495, subdivision 1, is amended to read:<br/>
<a id="pl.66.31"></a><var>66.31</var>    Subdivision 1. <b>Audit and examinations.</b> All powers and duties conferred and <br/>
<a id="pl.66.32"></a><var>66.32</var>imposed upon the state auditor with respect to state, county, and first-class city officers, <br/>
<a id="pl.67.1"></a><var>67.1</var>institutions, and property are hereby extended to the various fire and police relief <br/>
<a id="pl.67.2"></a><var>67.2</var>associations in the state. The state auditor shall annually audit the special and general <br/>
<a id="pl.67.3"></a><var>67.3</var>funds of the relief association or, at the request of the board of trustees or the municipality, <br/>
<a id="pl.67.4"></a><var>67.4</var>the state auditor may contract for an annual audit by a certified public accountant. The <br/>
<a id="pl.67.5"></a><var>67.5</var>state auditor may determine that an annual audit is not necessary, in which case the state <br/>
<a id="pl.67.6"></a><var>67.6</var>auditor shall develop a plan for examination of unaudited relief associations, and shall <br/>
<a id="pl.67.7"></a><var>67.7</var>prescribe suitable systems of accounts and budgeting, and forms, books, and instructions <br/>
<a id="pl.67.8"></a><var>67.8</var>concerning the same.<br/>
<a id="pl.67.9"></a><var>67.9</var>Copies of the written report of the state auditor on the financial condition and <br/>
<a id="pl.67.10"></a><var>67.10</var>accounts of the relief association shall must be filed with the board of trustees of the <br/>
<a id="pl.67.11"></a><var>67.11</var>relief association and the governing body of the municipality associated with the relief <br/>
<a id="pl.67.12"></a><var>67.12</var>association. If the report discloses malfeasance, misfeasance, or nonfeasance with regard <br/>
<a id="pl.67.13"></a><var>67.13</var>to relief association funds, copies thereof shall must be filed with the city attorney or county <br/>
<a id="pl.67.14"></a><var>67.14</var>attorney in the city or county in which the relief association is located, and these officials of <br/>
<a id="pl.67.15"></a><var>67.15</var>the law shall institute proceedings, civil or criminal, as the law and public interest require.<br/>
<br/>
<a id="bill.5.2.0"></a><a id="pl.67.16"></a><var>67.16</var>    Sec. 2. Minnesota Statutes 2012, section 6.495, subdivision 3, is amended to read:<br/>
<a id="pl.67.17"></a><var>67.17</var>    Subd. 3. <b>Report to commissioner of revenue.</b> The state auditor shall file with <br/>
<a id="pl.67.18"></a><var>67.18</var>the commissioner of revenue a financial compliance report certifying for each relief <br/>
<a id="pl.67.19"></a><var>67.19</var>association:<br/>
<a id="pl.67.20"></a><var>67.20</var>(1) the completion of the annual financial report required pursuant to under section <br/>
<statute_ref><a id="pl.67.21"></a><var>67.21</var>69.051
         </statute_ref> and the auditing or certification of those financial reports pursuant to under <br/>
<a id="pl.67.22"></a><var>67.22</var>subdivision 1; and<br/>
<a id="pl.67.23"></a><var>67.23</var>(2) the receipt of any actuarial valuations required pursuant to under section 69.77 <br/>
<a id="pl.67.24"></a><var>67.24</var>or
<statute_ref>69.773</statute_ref> or sections 31 to 42.<br/>
<br/>
<a id="bill.5.3.0"></a><a id="pl.67.25"></a><var>67.25</var>    Sec. 3. Minnesota Statutes 2012, section 6.67, is amended to read:<br/>
<a id="pl.67.26"></a><var>67.26</var><b>6.67 PUBLIC ACCOUNTANTS; REPORT OF POSSIBLE MISCONDUCT.</b><br/>
<a id="pl.67.27"></a><var>67.27</var>    Whenever a public accountant in the course of auditing the books and affairs of a <br/>
<a id="pl.67.28"></a><var>67.28</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.67.29"></a><var>67.29</var>69.771
         </statute_ref> to 
         <statute_ref>69.775</statute_ref>, or chapter 354A or 424A, or sections 31 to 42, discovers evidence <br/>
<a id="pl.67.30"></a><var>67.30</var>pointing to nonfeasance, misfeasance, or malfeasance, on the part of an officer or <br/>
<a id="pl.67.31"></a><var>67.31</var>employee in the conduct of duties and affairs, the public accountant shall promptly make <br/>
<a id="pl.67.32"></a><var>67.32</var>a report of such discovery to the state auditor and the county attorney of the county in <br/>
<a id="pl.67.33"></a><var>67.33</var>which the governmental unit is situated and the public accountant shall also furnish a <br/>
<a id="pl.67.34"></a><var>67.34</var>copy of the report of audit upon completion to said officers. The county attorney shall <br/>
<a id="pl.68.1"></a><var>68.1</var>act on such report in the same manner as required by law for reports made to the county <br/>
<a id="pl.68.2"></a><var>68.2</var>attorney by the state auditor.<br/>
<br/>
<a id="bill.5.4.0"></a><a id="pl.68.3"></a><var>68.3</var>    Sec. 4. Minnesota Statutes 2012, section 13D.01, subdivision 1, is amended to read:<br/>
<a id="pl.68.4"></a><var>68.4</var>    Subdivision 1. <b>In executive branch, local government.</b> All meetings, including <br/>
<a id="pl.68.5"></a><var>68.5</var>executive sessions, must be open to the public<br/>
<a id="pl.68.6"></a><var>68.6</var>(a) of a state<br/>
<a id="pl.68.7"></a><var>68.7</var>(1) agency,<br/>
<a id="pl.68.8"></a><var>68.8</var>(2) board,<br/>
<a id="pl.68.9"></a><var>68.9</var>(3) commission, or<br/>
<a id="pl.68.10"></a><var>68.10</var>(4) department,<br/>
<a id="pl.68.11"></a><var>68.11</var>when required or permitted by law to transact public business in a meeting;<br/>
<a id="pl.68.12"></a><var>68.12</var>(b) of the governing body of a<br/>
<a id="pl.68.13"></a><var>68.13</var>(1) school district however organized,<br/>
<a id="pl.68.14"></a><var>68.14</var>(2) unorganized territory,<br/>
<a id="pl.68.15"></a><var>68.15</var>(3) county,<br/>
<a id="pl.68.16"></a><var>68.16</var>(4) statutory or home rule charter city,<br/>
<a id="pl.68.17"></a><var>68.17</var>(5) town, or<br/>
<a id="pl.68.18"></a><var>68.18</var>(6) other public body;<br/>
<a id="pl.68.19"></a><var>68.19</var>(c) of any<br/>
<a id="pl.68.20"></a><var>68.20</var>(1) committee,<br/>
<a id="pl.68.21"></a><var>68.21</var>(2) subcommittee,<br/>
<a id="pl.68.22"></a><var>68.22</var>(3) board,<br/>
<a id="pl.68.23"></a><var>68.23</var>(4) department, or<br/>
<a id="pl.68.24"></a><var>68.24</var>(5) commission,<br/>
<a id="pl.68.25"></a><var>68.25</var>of a public body; and<br/>
<a id="pl.68.26"></a><var>68.26</var>(d) of the governing body or a committee of:<br/>
<a id="pl.68.27"></a><var>68.27</var>(1) a statewide public pension plan defined in section 
         <statute_ref>356A.01, subdivision 24</statute_ref>; or<br/>
<a id="pl.68.28"></a><var>68.28</var>(2) a local public pension plan governed by section 69.77, sections 
         <statute_ref>69.771</statute_ref> to 
         <statute_ref>69.775</statute_ref>, <br/>
<a id="pl.68.29"></a><var>68.29</var>or chapter 354A, or sections 31 to 42.<br/>
<br/>
<a id="bill.5.5.0"></a><a id="pl.68.30"></a><var>68.30</var>    Sec. 5. Minnesota Statutes 2012, section 69.011, subdivision 1, is amended to read:<br/>
<a id="pl.68.31"></a><var>68.31</var>    Subdivision 1. <b>Definitions.</b> Unless the language or context clearly indicates that <br/>
<a id="pl.68.32"></a><var>68.32</var>a different meaning is intended, the following words and terms, for the purposes of this <br/>
<a id="pl.68.33"></a><var>68.33</var>chapter and chapters 423, 423A, 424 and 424A, have the meanings ascribed to them:<br/>
<a id="pl.68.34"></a><var>68.34</var>    (a) "Commissioner" means the commissioner of revenue.<br/>
<a id="pl.69.1"></a><var>69.1</var>    (b) "Municipality" means:<br/>
<a id="pl.69.2"></a><var>69.2</var>    (1) a home rule charter or statutory city;<br/>
<a id="pl.69.3"></a><var>69.3</var>    (2) an organized town;<br/>
<a id="pl.69.4"></a><var>69.4</var>    (3) a park district subject to chapter 398;<br/>
<a id="pl.69.5"></a><var>69.5</var>    (4) the University of Minnesota;<br/>
<a id="pl.69.6"></a><var>69.6</var>    (5) for purposes of the fire state aid program only, an American Indian tribal <br/>
<a id="pl.69.7"></a><var>69.7</var>government entity located within a federally recognized American Indian reservation;<br/>
<a id="pl.69.8"></a><var>69.8</var>    (6) for purposes of the police state aid program only, an American Indian tribal <br/>
<a id="pl.69.9"></a><var>69.9</var>government with a tribal police department which exercises state arrest powers under <br/>
<a id="pl.69.10"></a><var>69.10</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.69.11"></a><var>69.11</var>    (7) for purposes of the police state aid program only, the Metropolitan Airports <br/>
<a id="pl.69.12"></a><var>69.12</var>Commission; and<br/>
<a id="pl.69.13"></a><var>69.13</var>    (8) for purposes of the police state aid program only, the Department of Natural <br/>
<a id="pl.69.14"></a><var>69.14</var>Resources and the Department of Public Safety with respect to peace officers covered <br/>
<a id="pl.69.15"></a><var>69.15</var>under chapter 352B.<br/>
<a id="pl.69.16"></a><var>69.16</var>    (c) "Minnesota Firetown Premium Report" means a form prescribed by the <br/>
<a id="pl.69.17"></a><var>69.17</var>commissioner containing space for reporting by insurers of fire, lightning, sprinkler <br/>
<a id="pl.69.18"></a><var>69.18</var>leakage and extended coverage premiums received upon risks located or to be performed <br/>
<a id="pl.69.19"></a><var>69.19</var>in this state less return premiums and dividends.<br/>
<a id="pl.69.20"></a><var>69.20</var>    (d) "Firetown" means the area serviced by any municipality having a qualified fire <br/>
<a id="pl.69.21"></a><var>69.21</var>department or a qualified incorporated fire department having a subsidiary volunteer <br/>
<a id="pl.69.22"></a><var>69.22</var>firefighters' relief association.<br/>
<a id="pl.69.23"></a><var>69.23</var>    (e) "Market value" means latest available market value of all property in a taxing <br/>
<a id="pl.69.24"></a><var>69.24</var>jurisdiction, whether the property is subject to taxation, or exempt from ad valorem <br/>
<a id="pl.69.25"></a><var>69.25</var>taxation obtained from information which appears on abstracts filed with the commissioner <br/>
<a id="pl.69.26"></a><var>69.26</var>of revenue or equalized by the State Board of Equalization.<br/>
<a id="pl.69.27"></a><var>69.27</var>    (f) "Minnesota Aid to Police Premium Report" means a form prescribed by the <br/>
<a id="pl.69.28"></a><var>69.28</var>commissioner for reporting by each fire and casualty insurer of all premiums received <br/>
<a id="pl.69.29"></a><var>69.29</var>upon direct business received by it in this state, or by its agents for it, in cash or otherwise, <br/>
<a id="pl.69.30"></a><var>69.30</var>during the preceding calendar year, with reference to insurance written for insuring against <br/>
<a id="pl.69.31"></a><var>69.31</var>the perils contained in auto insurance coverages as reported in the Minnesota business <br/>
<a id="pl.69.32"></a><var>69.32</var>schedule of the annual financial statement which each insurer is required to file with <br/>
<a id="pl.69.33"></a><var>69.33</var>the commissioner in accordance with the governing laws or rules less return premiums <br/>
<a id="pl.69.34"></a><var>69.34</var>and dividends.<br/>
<a id="pl.69.35"></a><var>69.35</var>    (g) "Peace officer" means any person:<br/>
<a id="pl.70.1"></a><var>70.1</var>    (1) whose primary source of income derived from wages is from direct employment <br/>
<a id="pl.70.2"></a><var>70.2</var>by a municipality or county as a law enforcement officer on a full-time basis of not less <br/>
<a id="pl.70.3"></a><var>70.3</var>than 30 hours per week;<br/>
<a id="pl.70.4"></a><var>70.4</var>    (2) who has been employed for a minimum of six months prior to December 31 <br/>
<a id="pl.70.5"></a><var>70.5</var>preceding the date of the current year's certification under subdivision 2, clause (b);<br/>
<a id="pl.70.6"></a><var>70.6</var>    (3) who is sworn to enforce the general criminal laws of the state and local ordinances;<br/>
<a id="pl.70.7"></a><var>70.7</var>    (4) who is licensed by the Peace Officers Standards and Training Board and is <br/>
<a id="pl.70.8"></a><var>70.8</var>authorized to arrest with a warrant; and<br/>
<a id="pl.70.9"></a><var>70.9</var>    (5) who is a member of the State Patrol retirement plan or the public employees <br/>
<a id="pl.70.10"></a><var>70.10</var>police and fire fund.<br/>
<a id="pl.70.11"></a><var>70.11</var>    (h) "Full-time equivalent number of peace officers providing contract service" means <br/>
<a id="pl.70.12"></a><var>70.12</var>the integral or fractional number of peace officers which would be necessary to provide <br/>
<a id="pl.70.13"></a><var>70.13</var>the contract service if all peace officers providing service were employed on a full-time <br/>
<a id="pl.70.14"></a><var>70.14</var>basis as defined by the employing unit and the municipality receiving the contract service.<br/>
<a id="pl.70.15"></a><var>70.15</var>    (i) "Retirement benefits other than a service pension" means any disbursement <br/>
<a id="pl.70.16"></a><var>70.16</var>authorized under section 
         <statute_ref>424A.05, subdivision 3</statute_ref>, clauses (3) and (4).<br/>
<a id="pl.70.17"></a><var>70.17</var>    (j) "Municipal clerk, municipal clerk-treasurer, or county auditor" means:<br/>
<a id="pl.70.18"></a><var>70.18</var>(1) for the police state aid program and police relief association financial reports:<br/>
<a id="pl.70.19"></a><var>70.19</var>(i) the person who was elected or appointed to the specified position or, in the <br/>
<a id="pl.70.20"></a><var>70.20</var>absence of the person, another person who is designated by the applicable governing body;<br/>
<a id="pl.70.21"></a><var>70.21</var>(ii) in a park district, the secretary of the board of park district commissioners;<br/>
<a id="pl.70.22"></a><var>70.22</var>(iii) in the case of the University of Minnesota, the official designated by the Board <br/>
<a id="pl.70.23"></a><var>70.23</var>of Regents;<br/>
<a id="pl.70.24"></a><var>70.24</var>(iv) for the Metropolitan Airports Commission, the person designated by the <br/>
<a id="pl.70.25"></a><var>70.25</var>commission;<br/>
<a id="pl.70.26"></a><var>70.26</var>(v) for the Department of Natural Resources or the Department of Public Safety, the <br/>
<a id="pl.70.27"></a><var>70.27</var>respective commissioner;<br/>
<a id="pl.70.28"></a><var>70.28</var>(vi) for a tribal police department which exercises state arrest powers under section <br/>
<statute_ref><a id="pl.70.29"></a><var>70.29</var>626.90
         </statute_ref>, 
         <statute_ref>626.91</statute_ref>, 
         <statute_ref>626.92</statute_ref>, or 
         <statute_ref>626.93</statute_ref>, the person designated by the applicable American <br/>
<a id="pl.70.30"></a><var>70.30</var>Indian tribal government; and<br/>
<a id="pl.70.31"></a><var>70.31</var>(2) for the fire state aid program and fire relief association financial reports, the <br/>
<a id="pl.70.32"></a><var>70.32</var>person who was elected or appointed to the specified position, or, for governmental <br/>
<a id="pl.70.33"></a><var>70.33</var>entities other than counties, if the governing body of the governmental entity designates <br/>
<a id="pl.70.34"></a><var>70.34</var>the position to perform the function, the chief financial official of the governmental entity <br/>
<a id="pl.70.35"></a><var>70.35</var>or the chief administrative official of the governmental entity.<br/>
<a id="pl.71.1"></a><var>71.1</var>(k) "Voluntary statewide lump-sum volunteer firefighter retirement plan" means the <br/>
<a id="pl.71.2"></a><var>71.2</var>retirement plan established by chapter 353G.<br/>
<br/>
<a id="bill.5.6.0"></a><a id="pl.71.3"></a><var>71.3</var>    Sec. 6. Minnesota Statutes 2012, section 69.011, subdivision 2, is amended to read:<br/>
<a id="pl.71.4"></a><var>71.4</var>    Subd. 2. <b>Qualification for fire or police state aid.</b> (a) Unless retirement coverage <br/>
<a id="pl.71.5"></a><var>71.5</var>is provided by the voluntary statewide lump-sum volunteer firefighter retirement plan, in <br/>
<a id="pl.71.6"></a><var>71.6</var>order to qualify to receive fire state aid, on or before March 15 annually, in conjunction <br/>
<a id="pl.71.7"></a><var>71.7</var>with the financial report required pursuant to section 
         <statute_ref>69.051</statute_ref>, the clerk of each municipality <br/>
<a id="pl.71.8"></a><var>71.8</var>having a duly organized fire department as provided in subdivision 4, or the secretary of <br/>
<a id="pl.71.9"></a><var>71.9</var>each independent nonprofit firefighting corporation having a subsidiary incorporated <br/>
<a id="pl.71.10"></a><var>71.10</var>firefighters' relief association, whichever is applicable, and the fire chief, shall jointly <br/>
<a id="pl.71.11"></a><var>71.11</var>certify the existence of the municipal fire department or of the independent nonprofit <br/>
<a id="pl.71.12"></a><var>71.12</var>firefighting corporation, whichever is applicable, which meets the minimum qualification <br/>
<a id="pl.71.13"></a><var>71.13</var>requirements set forth in this subdivision, and the fire personnel and equipment of the <br/>
<a id="pl.71.14"></a><var>71.14</var>municipal fire department or the independent nonprofit firefighting corporation as of the <br/>
<a id="pl.71.15"></a><var>71.15</var>preceding December 31.<br/>
<a id="pl.71.16"></a><var>71.16</var>(b) Where retirement coverage is provided by the voluntary statewide lump-sum <br/>
<a id="pl.71.17"></a><var>71.17</var>volunteer firefighter retirement plan, in order to qualify to receive fire state aid, on or <br/>
<a id="pl.71.18"></a><var>71.18</var>before March 15, annually, the executive director of the Public Employees Retirement <br/>
<a id="pl.71.19"></a><var>71.19</var>Association shall certify the existence of that coverage for each municipality and the <br/>
<a id="pl.71.20"></a><var>71.20</var>municipal clerk or independent nonprofit firefighting corporation secretary, whichever <br/>
<a id="pl.71.21"></a><var>71.21</var>applies, and the applicable fire chief shall certify the fire personnel and fire department <br/>
<a id="pl.71.22"></a><var>71.22</var>equipment as of the preceding December 31.<br/>
<a id="pl.71.23"></a><var>71.23</var>(c) Certification must be made to the commissioner on a form prescribed by the <br/>
<a id="pl.71.24"></a><var>71.24</var>commissioner and shall include any other facts the commissioner may require. The <br/>
<a id="pl.71.25"></a><var>71.25</var>certification must be made to the commissioner in duplicate. Each copy of the certificate <br/>
<a id="pl.71.26"></a><var>71.26</var>must be duly executed and is deemed to be an original. The commissioner shall forward <br/>
<a id="pl.71.27"></a><var>71.27</var>one copy to the auditor of the county wherein the fire department is located and shall <br/>
<a id="pl.71.28"></a><var>71.28</var>retain one copy.<br/>
<a id="pl.71.29"></a><var>71.29</var>(d) On or before March 15 annually the clerk of each municipality having a duly <br/>
<a id="pl.71.30"></a><var>71.30</var>organized police department and having a duly incorporated relief association shall certify <br/>
<a id="pl.71.31"></a><var>71.31</var>that fact to the county auditor of the county where the police department is located and to <br/>
<a id="pl.71.32"></a><var>71.32</var>the commissioner on a form prescribed by the commissioner together with the other facts <br/>
<a id="pl.71.33"></a><var>71.33</var>the commissioner or auditor may require.<br/>
<a id="pl.71.34"></a><var>71.34</var>(e) (c) Except as provided in subdivision 2b, on or before March 15 annually, in <br/>
<a id="pl.71.35"></a><var>71.35</var>order to qualify to receive police state aid, the clerk of each municipality and the auditor of <br/>
<a id="pl.72.1"></a><var>72.1</var>each county employing one or more peace officers as defined in subdivision 1, clause (g), <br/>
<a id="pl.72.2"></a><var>72.2</var>shall certify the number of such peace officers to the commissioner on forms prescribed by <br/>
<a id="pl.72.3"></a><var>72.3</var>the commissioner. Credit for officers employed less than a full year must be apportioned. <br/>
<a id="pl.72.4"></a><var>72.4</var>Each full month of employment of a qualifying officer during the calendar year entitles the <br/>
<a id="pl.72.5"></a><var>72.5</var>employing municipality or county to credit for 1/12 of the payment for employment of a <br/>
<a id="pl.72.6"></a><var>72.6</var>peace officer for the entire year. For purposes of sections 
         <statute_ref>69.011</statute_ref> to 
         <statute_ref>69.051</statute_ref>, employment <br/>
<a id="pl.72.7"></a><var>72.7</var>of a peace officer commences when the peace officer is entered on the payroll of the <br/>
<a id="pl.72.8"></a><var>72.8</var>respective municipal police department or county sheriff's department. No peace officer <br/>
<a id="pl.72.9"></a><var>72.9</var>may be included in the certification of the number of peace officers by more than one <br/>
<a id="pl.72.10"></a><var>72.10</var>municipality or county employing unit for the same month.<br/>
<a id="pl.72.11"></a><var>72.11</var>(d) A certification made under this subdivision must be filed with the commissioner, <br/>
<a id="pl.72.12"></a><var>72.12</var>must be made on a form prescribed by the commissioner, and must include any other facts <br/>
<a id="pl.72.13"></a><var>72.13</var>that the commissioner requires.<br/>
<br/>
<a id="bill.5.7.0"></a><a id="pl.72.14"></a><var>72.14</var>    Sec. 7. Minnesota Statutes 2012, section 69.011, subdivision 3, is amended to read:<br/>
<a id="pl.72.15"></a><var>72.15</var>    Subd. 3. <b>Failure to file certificate deemed waiver.</b> (a) If a certification required by <br/>
<a id="pl.72.16"></a><var>72.16</var>this section is not filed with the commissioner by the due date prescribed by this section, <br/>
<a id="pl.72.17"></a><var>72.17</var>the commissioner shall notify the county, the municipality, or the nonprofit firefighting <br/>
<a id="pl.72.18"></a><var>72.18</var>corporation that a portion or all of its current year aid will be forfeited if the certification <br/>
<a id="pl.72.19"></a><var>72.19</var>is not received within ten days.<br/>
<a id="pl.72.20"></a><var>72.20</var>(b) The amount of aid forfeited is equal to the amount of state police aid or state fire <br/>
<a id="pl.72.21"></a><var>72.21</var>aid determined for the county, the municipality, or the nonprofit firefighting corporation <br/>
<a id="pl.72.22"></a><var>72.22</var>for the current year, multiplied by five percent for each week or fraction of a week that <br/>
<a id="pl.72.23"></a><var>72.23</var>this certification is late. The penalty will must be computed beginning ten days after the <br/>
<a id="pl.72.24"></a><var>72.24</var>postmark date of the commissioner's notification as required under this subdivision. All <br/>
<a id="pl.72.25"></a><var>72.25</var>forfeited aid amounts revert to the general fund in the state treasury. Failure to receive the <br/>
<a id="pl.72.26"></a><var>72.26</var>certificate form cannot may not be used as a defense for not filing a failure to file.<br/>
<br/>
<a id="bill.5.8.0"></a><a id="pl.72.27"></a><var>72.27</var>    Sec. 8. Minnesota Statutes 2012, section 69.011, subdivision 4, is amended to read:<br/>
<a id="pl.72.28"></a><var>72.28</var>    Subd. 4. <b>Qualification for </b><b>fire </b><b>state aid.</b> Any (a) A municipality in this state <br/>
<a id="pl.72.29"></a><var>72.29</var>qualifies to receive fire state aid if it meets the general requirements of paragraph (b) and <br/>
<a id="pl.72.30"></a><var>72.30</var>if it meets the specific requirements of paragraph (c).<br/>
<a id="pl.72.31"></a><var>72.31</var>(b) Minimum qualifications for fire state aid include the following:<br/>
<a id="pl.72.32"></a><var>72.32</var>(1) having for more than one year an organized fire department and officially <br/>
<a id="pl.72.33"></a><var>72.33</var>established by the governing body of the municipality or an independent nonprofit <br/>
<a id="pl.72.34"></a><var>72.34</var>firefighting corporation created under the nonprofit corporation act of this state and <br/>
<a id="pl.73.1"></a><var>73.1</var>operating exclusively for firefighting purposes and providing retirement and relief benefits <br/>
<a id="pl.73.2"></a><var>73.2</var>to its members,; and<br/>
<a id="pl.73.3"></a><var>73.3</var>(2) having a separate subsidiary incorporated firefighter's relief and pension<br/>
<a id="pl.73.4"></a><var>73.4</var> association providing retirement and relief benefits, or participating in the voluntary <br/>
<a id="pl.73.5"></a><var>73.5</var>statewide lump-sum volunteer firefighter retirement plan, may qualify to receive state aid <br/>
<a id="pl.73.6"></a><var>73.6</var>if it meets the following or, if a paid fire department, having retirement coverage by the <br/>
<a id="pl.73.7"></a><var>73.7</var>public employees police and fire retirement plan.<br/>
<a id="pl.73.8"></a><var>73.8</var>(c) Minimum requirements for fire state aid also include the following or their <br/>
<a id="pl.73.9"></a><var>73.9</var>equivalent as determined by the state fire marshal by July 1, 1972:<br/>
<a id="pl.73.10"></a><var>73.10</var>(a) (1) having ten paid or volunteer firefighters including a fire chief and assistant <br/>
<a id="pl.73.11"></a><var>73.11</var>fire chief, and;<br/>
<a id="pl.73.12"></a><var>73.12</var>(b) (2) having regular scheduled meetings and frequent drills including instructions <br/>
<a id="pl.73.13"></a><var>73.13</var>in firefighting tactics and in the use, care, and operation of all fire apparatus and <br/>
<a id="pl.73.14"></a><var>73.14</var>equipment, and;<br/>
<a id="pl.73.15"></a><var>73.15</var>(c) (3) having a motorized fire truck equipped with a motorized pump, 250 gallon or <br/>
<a id="pl.73.16"></a><var>73.16</var>larger water tank, 300 feet of one inch or larger fire hose in two lines with combination <br/>
<a id="pl.73.17"></a><var>73.17</var>spray and straight stream nozzles, five-gallon hand pumps--tank extinguisher or equivalent, <br/>
<a id="pl.73.18"></a><var>73.18</var>dry chemical extinguisher or equivalent, ladders, extension ladders, pike poles, crow bars, <br/>
<a id="pl.73.19"></a><var>73.19</var>axes, lanterns, fire coats, helmets, and boots, and;<br/>
<a id="pl.73.20"></a><var>73.20</var>(d) (4) having apparatus suitably housed in a building of good construction with <br/>
<a id="pl.73.21"></a><var>73.21</var>facilities for care of hose and equipment, and;<br/>
<a id="pl.73.22"></a><var>73.22</var>(e) (5) having a reliable and adequate method of receiving fire alarms by telephone <br/>
<a id="pl.73.23"></a><var>73.23</var>or with electric siren and suitable means of sounding an alarm, and;<br/>
<a id="pl.73.24"></a><var>73.24</var>(f) (6) if response is to be provided outside the corporate limits of the municipality <br/>
<a id="pl.73.25"></a><var>73.25</var>wherein the fire department is located, the municipality has having another piece of <br/>
<a id="pl.73.26"></a><var>73.26</var>motorized apparatus to make the response,; and<br/>
<a id="pl.73.27"></a><var>73.27</var>(g) (7) meeting other requirements that the commissioner establishes by rule.<br/>
<br/>
<a id="bill.5.9.0"></a><a id="pl.73.28"></a><var>73.28</var>    Sec. 9. Minnesota Statutes 2012, section 69.021, subdivision 1, is amended to read:<br/>
<a id="pl.73.29"></a><var>73.29</var>    Subdivision 1. <b>Minnesota Firetown Premium Report and Minnesota Aid to </b><br/>
<a id="pl.73.30"></a><var>73.30</var><b>Police Premium Report.</b> The commissioner shall, at the time of mailing tax forms, <br/>
<a id="pl.73.31"></a><var>73.31</var>send blank copies of the Minnesota Firetown Premium Report and when applicable the <br/>
<a id="pl.73.32"></a><var>73.32</var>Minnesota Aid to Police Premium Report to each insurer, including township and farmers <br/>
<a id="pl.73.33"></a><var>73.33</var>mutual insurance companies licensed to write insurance as described in section 
         <statute_ref>69.011, <br/>
<a id="pl.73.34"></a><var>73.34</var>subdivision 1
         </statute_ref>, clauses (c) and (f) in this state. These reports shall must contain space <br/>
<a id="pl.74.1"></a><var>74.1</var>for the insurers name, address, gross premiums less return premiums, dividends, net <br/>
<a id="pl.74.2"></a><var>74.2</var>premiums, certification and other facts that the commissioner may require.<br/>
<br/>
<a id="bill.5.10.0"></a><a id="pl.74.3"></a><var>74.3</var>    Sec. 10. Minnesota Statutes 2012, section 69.021, subdivision 2, is amended to read:<br/>
<a id="pl.74.4"></a><var>74.4</var>    Subd. 2. <b>Report of premiums.</b> (a) Each insurer, including township and farmers <br/>
<a id="pl.74.5"></a><var>74.5</var>mutual insurers where applicable, shall return to the commissioner the reports described in <br/>
<a id="pl.74.6"></a><var>74.6</var>subdivision 1 certified by its secretary and president or chief financial officer.<br/>
<a id="pl.74.7"></a><var>74.7</var>(b) The Minnesota Firetown Premium Report shall must contain a true and accurate <br/>
<a id="pl.74.8"></a><var>74.8</var>statement of the total premium for all gross direct fire, lightning, sprinkler leakage, and <br/>
<a id="pl.74.9"></a><var>74.9</var>extended coverage insurance of all domestic mutual insurers and the total premiums for <br/>
<a id="pl.74.10"></a><var>74.10</var>all gross direct fire, lightning, sprinkler leakage and extended coverage insurance of all <br/>
<a id="pl.74.11"></a><var>74.11</var>other insurers, less return premiums and dividends received by them on that business <br/>
<a id="pl.74.12"></a><var>74.12</var>written or done during the preceding calendar year upon property located within the state <br/>
<a id="pl.74.13"></a><var>74.13</var>or brought into the state for temporary use. The fire and extended coverage portion of <br/>
<a id="pl.74.14"></a><var>74.14</var>multiperil and multiple peril package premiums and all other combination premiums shall<br/>
<a id="pl.74.15"></a><var>74.15</var> must be determined by applying percentages determined by the commissioner or by rating <br/>
<a id="pl.74.16"></a><var>74.16</var>bureaus recognized by the commissioner.<br/>
<a id="pl.74.17"></a><var>74.17</var>(c) The Minnesota Aid to Police Premium Report shall must contain a true and <br/>
<a id="pl.74.18"></a><var>74.18</var>accurate statement of the total premiums, less return premiums and dividends, on all direct <br/>
<a id="pl.74.19"></a><var>74.19</var>business received by such insurer in this state, or by its agents for it, in cash or otherwise, <br/>
<a id="pl.74.20"></a><var>74.20</var>during the preceding calendar year, with reference to insurance written for perils described <br/>
<a id="pl.74.21"></a><var>74.21</var>in section 
         <statute_ref>69.011, subdivision 1</statute_ref>, clause (f).<br/>
<br/>
<a id="bill.5.11.0"></a><a id="pl.74.22"></a><var>74.22</var>    Sec. 11. Minnesota Statutes 2012, section 69.021, subdivision 3, is amended to read:<br/>
<a id="pl.74.23"></a><var>74.23</var>    Subd. 3. <b>Penalty for fraudulent, incorrect, incomplete returns and late filing of </b><br/>
<a id="pl.74.24"></a><var>74.24</var><b>report.</b> (a) When it appears to the commissioner that any insurer has made an incomplete or <br/>
<a id="pl.74.25"></a><var>74.25</var>inaccurate report, the commissioner shall return the report and demand that a complete and <br/>
<a id="pl.74.26"></a><var>74.26</var>accurate report be filed. If the insurer fails to file a report on or before March 1, annually, <br/>
<a id="pl.74.27"></a><var>74.27</var>the insurer shall be is liable and shall pay $25 for each seven days delinquent, or fraction <br/>
<a id="pl.74.28"></a><var>74.28</var>thereof, that the report is delinquent, but not to exceed $200. If the insurer fails to file a <br/>
<a id="pl.74.29"></a><var>74.29</var>corrected report within 30 days after demand, the insurer is liable for the penalties provided <br/>
<a id="pl.74.30"></a><var>74.30</var>in this subdivision paragraph (b) or (c) for knowingly filing an inaccurate or false report.<br/>
<a id="pl.74.31"></a><var>74.31</var>(b) Any insurer who which knowingly makes and files an inaccurate or false report <br/>
<a id="pl.74.32"></a><var>74.32</var>shall be is liable to a fine in an amount of not less than $25 nor more than $1,000, as <br/>
<a id="pl.74.33"></a><var>74.33</var>determined by the commissioner, and additionally the commissioner of commerce may <br/>
<a id="pl.74.34"></a><var>74.34</var>revoke the insurer's certificate of authority.<br/>
<a id="pl.75.1"></a><var>75.1</var>(c) Any person whose duty it is to make the report who fails or refuses to make it <br/>
<a id="pl.75.2"></a><var>75.2</var>within 30 days after notification by the commissioner shall be fined an amount of not <br/>
<a id="pl.75.3"></a><var>75.3</var>more than $1,000.<br/>
<a id="pl.75.4"></a><var>75.4</var>(d) Failure of the insurer to receive a reporting form shall does not excuse the insurer <br/>
<a id="pl.75.5"></a><var>75.5</var>from filing the report.<br/>
<br/>
<a id="bill.5.12.0"></a><a id="pl.75.6"></a><var>75.6</var>    Sec. 12. Minnesota Statutes 2012, section 69.021, subdivision 4, is amended to read:<br/>
<a id="pl.75.7"></a><var>75.7</var>    Subd. 4. <b>Determination of qualified state aid recipients; certification to </b><br/>
<a id="pl.75.8"></a><var>75.8</var><b>commissioner of management and budget.</b> (a) The commissioner shall determine <br/>
<a id="pl.75.9"></a><var>75.9</var>which municipalities and independent nonprofit firefighting corporations are qualified to <br/>
<a id="pl.75.10"></a><var>75.10</var>receive fire state aid directly or are qualified to receive the benefit of fire state aid paid <br/>
<a id="pl.75.11"></a><var>75.11</var>to the voluntary statewide lump-sum volunteer firefighter retirement plan and which <br/>
<a id="pl.75.12"></a><var>75.12</var>municipalities and counties are qualified to receive police state aid.<br/>
<a id="pl.75.13"></a><var>75.13</var>(b) The commissioner shall determine qualification for state aid upon receipt of:<br/>
<a id="pl.75.14"></a><var>75.14</var>(1) the fire department personnel and equipment certification or the police department <br/>
<a id="pl.75.15"></a><var>75.15</var>and qualified peace officers certificate, whichever applies, required under section 
         <statute_ref>69.011</statute_ref>;<br/>
<a id="pl.75.16"></a><var>75.16</var>(2) the financial compliance report required under section 
         <statute_ref>6.495, subdivision 3</statute_ref>, if <br/>
<a id="pl.75.17"></a><var>75.17</var>applicable; and<br/>
<a id="pl.75.18"></a><var>75.18</var>(3) any other relevant information which comes to the attention of the commissioner.<br/>
<a id="pl.75.19"></a><var>75.19</var>(c) Upon completion of the determination, on or before October 1, the commissioner <br/>
<a id="pl.75.20"></a><var>75.20</var>shall calculate the amount of:<br/>
<a id="pl.75.21"></a><var>75.21</var>(1) the police state aid which each county or municipality is to receive under <br/>
<a id="pl.75.22"></a><var>75.22</var>subdivisions 5, 6, 7a, and 10; and<br/>
<a id="pl.75.23"></a><var>75.23</var>(2) the fire state aid which each municipality or nonprofit firefighting corporation <br/>
<a id="pl.75.24"></a><var>75.24</var>is to receive under subdivisions 5 and 7.<br/>
<a id="pl.75.25"></a><var>75.25</var>(d) The commissioner shall certify to the commissioner of management and budget <br/>
<a id="pl.75.26"></a><var>75.26</var>the name of each county or municipality, and the amount of state aid which each county or <br/>
<a id="pl.75.27"></a><var>75.27</var>municipality is to receive, in the case of police state aid. The commissioner shall certify to <br/>
<a id="pl.75.28"></a><var>75.28</var>the commissioner of management and budget the name of each municipality or independent <br/>
<a id="pl.75.29"></a><var>75.29</var>nonprofit firefighting corporation and the amount of state aid which each municipality <br/>
<a id="pl.75.30"></a><var>75.30</var>or independent nonprofit firefighting corporation is to receive directly or the amount of <br/>
<a id="pl.75.31"></a><var>75.31</var>state aid which the voluntary statewide lump-sum volunteer firefighter retirement plan is <br/>
<a id="pl.75.32"></a><var>75.32</var>qualified to receive on behalf of the municipality or corporation, in the case of fire state aid.<br/>
<br/>
<a id="bill.5.13.0"></a><a id="pl.75.33"></a><var>75.33</var>    Sec. 13. Minnesota Statutes 2012, section 69.021, subdivision 5, is amended to read:<br/>
<a id="pl.76.1"></a><var>76.1</var>    Subd. 5. <b>Calculation of state aid.</b> (a) The amount of fire state aid available for <br/>
<a id="pl.76.2"></a><var>76.2</var>apportionment, before the addition of the minimum fire state aid allocation amount under <br/>
<a id="pl.76.3"></a><var>76.3</var>subdivision 7, is equal to 107 percent of the amount of premium taxes paid to the state <br/>
<a id="pl.76.4"></a><var>76.4</var>upon the fire, lightning, sprinkler leakage, and extended coverage premiums reported to <br/>
<a id="pl.76.5"></a><var>76.5</var>the commissioner by insurers on the Minnesota Firetown Premium Report. This amount <br/>
<a id="pl.76.6"></a><var>76.6</var>must be reduced by the amount required to pay the state auditor's costs and expenses of <br/>
<a id="pl.76.7"></a><var>76.7</var>the audits or exams of the firefighters relief associations.<br/>
<a id="pl.76.8"></a><var>76.8</var>The total amount for apportionment in respect to fire state aid must not be less than <br/>
<a id="pl.76.9"></a><var>76.9</var>two percent of the premiums reported to the commissioner by insurers on the Minnesota <br/>
<a id="pl.76.10"></a><var>76.10</var>Firetown Premium Report after subtracting the following amounts:<br/>
<a id="pl.76.11"></a><var>76.11</var>(1) the amount required to pay the state auditor's costs and expenses of the audits or <br/>
<a id="pl.76.12"></a><var>76.12</var>exams of the firefighters relief associations; and<br/>
<a id="pl.76.13"></a><var>76.13</var>(2) one percent of the premiums reported by town and farmers' mutual insurance <br/>
<a id="pl.76.14"></a><var>76.14</var>companies and mutual property and casualty companies with total assets of $5,000,000 or <br/>
<a id="pl.76.15"></a><var>76.15</var>less.<br/>
<a id="pl.76.16"></a><var>76.16</var>(b) The total amount for apportionment as police state aid is equal to 104 percent <br/>
<a id="pl.76.17"></a><var>76.17</var>of the amount of premium taxes paid to the state on the premiums reported to the <br/>
<a id="pl.76.18"></a><var>76.18</var>commissioner by insurers on the Minnesota Aid to Police Premium Report, reduced by <br/>
<a id="pl.76.19"></a><var>76.19</var>the amount required to pay the costs and expenses of the state auditor for audits or exams <br/>
<a id="pl.76.20"></a><var>76.20</var>of police relief associations. The total amount for apportionment in respect to the police <br/>
<a id="pl.76.21"></a><var>76.21</var>state aid program must not be less than two percent of the amount of premiums reported <br/>
<a id="pl.76.22"></a><var>76.22</var>to the commissioner by insurers on the Minnesota Aid to Police Premium Report after <br/>
<a id="pl.76.23"></a><var>76.23</var>subtracting the amount required to pay the state auditor's cost and expenses of the audits <br/>
<a id="pl.76.24"></a><var>76.24</var>or exams of the police relief associations.<br/>
<a id="pl.76.25"></a><var>76.25</var>(c) The commissioner shall calculate the percentage of increase or decrease reflected <br/>
<a id="pl.76.26"></a><var>76.26</var>in the apportionment over or under the previous year's available state aid using the same <br/>
<a id="pl.76.27"></a><var>76.27</var>premiums as a basis for comparison.<br/>
<a id="pl.76.28"></a><var>76.28</var>(d) In addition to the amount for apportionment of police state aid under paragraph <br/>
<a id="pl.76.29"></a><var>76.29</var>(b), each year $100,000 must be apportioned for police state aid. An amount sufficient to <br/>
<a id="pl.76.30"></a><var>76.30</var>pay this increase is annually appropriated from the general fund.<br/>
<br/>
<a id="bill.5.14.0"></a><a id="pl.76.31"></a><var>76.31</var>    Sec. 14. Minnesota Statutes 2012, section 69.021, subdivision 7, is amended to read:<br/>
<a id="pl.76.32"></a><var>76.32</var>    Subd. 7. <b>Apportionment of fire state aid to municipalities and relief associations.</b><br/>
<a id="pl.76.33"></a><var>76.33</var>(a) The commissioner shall apportion the fire state aid relative to the premiums reported <br/>
<a id="pl.76.34"></a><var>76.34</var>on the Minnesota Firetown Premium Reports filed under this chapter to each municipality <br/>
<a id="pl.76.35"></a><var>76.35</var>and/or firefighters relief association qualified under section 69.011, subdivision 4.<br/>
<a id="pl.77.1"></a><var>77.1</var>(b) The commissioner shall calculate an initial fire state aid allocation amount for each <br/>
<a id="pl.77.2"></a><var>77.2</var>municipality or fire department under paragraph (c) and, if applicable, a minimum fire state <br/>
<a id="pl.77.3"></a><var>77.3</var>aid allocation amount for each municipality or fire department under paragraph (d). The <br/>
<a id="pl.77.4"></a><var>77.4</var>municipality or fire department must receive be apportioned the larger fire state aid amount.<br/>
<a id="pl.77.5"></a><var>77.5</var>(c) The initial fire state aid allocation amount is the amount available for <br/>
<a id="pl.77.6"></a><var>77.6</var>apportionment as fire state aid under subdivision 5, without the inclusion of any additional <br/>
<a id="pl.77.7"></a><var>77.7</var>funding amount to support a minimum fire state aid amount under section 
         <statute_ref>423A.02, <br/>
<a id="pl.77.8"></a><var>77.8</var>subdivision 3
         </statute_ref>, allocated one-half in proportion to the population as shown in the last <br/>
<a id="pl.77.9"></a><var>77.9</var>official statewide federal census for each fire town and one-half in proportion to the market <br/>
<a id="pl.77.10"></a><var>77.10</var>value of each fire town, including (1) the market value of tax-exempt property and (2) the <br/>
<a id="pl.77.11"></a><var>77.11</var>market value of natural resources lands receiving in lieu payments under sections 
         <statute_ref>477A.11 <br/>
</statute_ref><a id="pl.77.12"></a><var>77.12</var>to 
         <statute_ref>477A.14</statute_ref>, but excluding the market value of minerals. In the case of incorporated or <br/>
<a id="pl.77.13"></a><var>77.13</var>municipal fire departments furnishing fire protection to other cities, towns, or townships <br/>
<a id="pl.77.14"></a><var>77.14</var>as evidenced by valid fire service contracts filed with the commissioner, the distribution <br/>
<a id="pl.77.15"></a><var>77.15</var>must be adjusted proportionately to take into consideration the crossover fire protection <br/>
<a id="pl.77.16"></a><var>77.16</var>service. Necessary adjustments must be made to subsequent apportionments. In the case <br/>
<a id="pl.77.17"></a><var>77.17</var>of municipalities or independent fire departments qualifying for the aid, the commissioner <br/>
<a id="pl.77.18"></a><var>77.18</var>shall calculate the state aid for the municipality or relief association on the basis of the <br/>
<a id="pl.77.19"></a><var>77.19</var>population and the market value of the area furnished fire protection service by the fire <br/>
<a id="pl.77.20"></a><var>77.20</var>department as evidenced by duly executed and valid fire service agreements filed with the <br/>
<a id="pl.77.21"></a><var>77.21</var>commissioner. If one or more fire departments are furnishing contracted fire service to a <br/>
<a id="pl.77.22"></a><var>77.22</var>city, town, or township, only the population and market value of the area served by each <br/>
<a id="pl.77.23"></a><var>77.23</var>fire department may be considered in calculating the state aid and the fire departments <br/>
<a id="pl.77.24"></a><var>77.24</var>furnishing service shall enter into an agreement apportioning among themselves the <br/>
<a id="pl.77.25"></a><var>77.25</var>percent of the population and the percent of the market value of each shared service area. <br/>
<a id="pl.77.26"></a><var>77.26</var>The agreement must be in writing and must be filed with the commissioner.<br/>
<a id="pl.77.27"></a><var>77.27</var>(d) The minimum fire state aid allocation amount is the amount in addition to the <br/>
<a id="pl.77.28"></a><var>77.28</var>initial fire state allocation amount that is derived from any additional funding amount <br/>
<a id="pl.77.29"></a><var>77.29</var>to support a minimum fire state aid amount under section 
         <statute_ref>423A.02, subdivision 3</statute_ref>, and <br/>
<a id="pl.77.30"></a><var>77.30</var>allocated to municipalities with volunteer firefighters relief associations or covered by the <br/>
<a id="pl.77.31"></a><var>77.31</var>voluntary statewide lump-sum volunteer firefighter retirement plan based on the number <br/>
<a id="pl.77.32"></a><var>77.32</var>of active volunteer firefighters who are members of the relief association as reported <br/>
<a id="pl.77.33"></a><var>77.33</var>in the annual financial reporting for the calendar year 1993 to the Office of the State <br/>
<a id="pl.77.34"></a><var>77.34</var>Auditor, but not to exceed 30 active volunteer firefighters, so that all municipalities or <br/>
<a id="pl.77.35"></a><var>77.35</var>fire departments with volunteer firefighters relief associations receive in total at least a <br/>
<a id="pl.77.36"></a><var>77.36</var>minimum fire state aid amount per 1993 active volunteer firefighter to a maximum of <br/>
<a id="pl.78.1"></a><var>78.1</var>30 firefighters. If a relief association is established after calendar year 1993 and before <br/>
<a id="pl.78.2"></a><var>78.2</var>calendar year 2000, the number of active volunteer firefighters who are members of the <br/>
<a id="pl.78.3"></a><var>78.3</var>relief association as reported in the annual financial reporting for calendar year 1998 <br/>
<a id="pl.78.4"></a><var>78.4</var>to the Office of the State Auditor, but not to exceed 30 active volunteer firefighters, <br/>
<a id="pl.78.5"></a><var>78.5</var>shall be used in this determination. If a relief association is established after calendar <br/>
<a id="pl.78.6"></a><var>78.6</var>year 1999, the number of active volunteer firefighters who are members of the relief <br/>
<a id="pl.78.7"></a><var>78.7</var>association as reported in the first annual financial reporting submitted to the Office of <br/>
<a id="pl.78.8"></a><var>78.8</var>the State Auditor, but not to exceed 20 active volunteer firefighters, must be used in this <br/>
<a id="pl.78.9"></a><var>78.9</var>determination. If a relief association is terminated as a result of providing retirement <br/>
<a id="pl.78.10"></a><var>78.10</var>coverage for volunteer firefighters by the voluntary statewide lump-sum volunteer <br/>
<a id="pl.78.11"></a><var>78.11</var>firefighter retirement plan under chapter 353G, the number of active volunteer firefighters <br/>
<a id="pl.78.12"></a><var>78.12</var>of the municipality covered by the statewide plan as certified by the executive director of <br/>
<a id="pl.78.13"></a><var>78.13</var>the Public Employees Retirement Association to the commissioner and the state auditor, <br/>
<a id="pl.78.14"></a><var>78.14</var>but not to exceed 30 active firefighters, must be used in this determination.<br/>
<a id="pl.78.15"></a><var>78.15</var>(e) Unless the firefighters of the applicable fire department are members of the <br/>
<a id="pl.78.16"></a><var>78.16</var>voluntary statewide lump-sum volunteer firefighter retirement plan, the fire state aid must <br/>
<a id="pl.78.17"></a><var>78.17</var>be paid to the treasurer of the municipality where the fire department is located and the <br/>
<a id="pl.78.18"></a><var>78.18</var>treasurer of the municipality shall, within 30 days of receipt of the fire state aid, transmit <br/>
<a id="pl.78.19"></a><var>78.19</var>the aid to the relief association if the relief association has filed a financial report with the <br/>
<a id="pl.78.20"></a><var>78.20</var>treasurer of the municipality and has met all other statutory provisions pertaining to the <br/>
<a id="pl.78.21"></a><var>78.21</var>aid apportionment. If the firefighters of the applicable fire department are members of <br/>
<a id="pl.78.22"></a><var>78.22</var>the voluntary statewide lump-sum volunteer firefighter retirement plan, the fire state aid <br/>
<a id="pl.78.23"></a><var>78.23</var>must be paid to the executive director of the Public Employees Retirement Association <br/>
<a id="pl.78.24"></a><var>78.24</var>and deposited in the voluntary statewide lump-sum volunteer firefighter retirement fund.<br/>
<a id="pl.78.25"></a><var>78.25</var>(f) The commissioner may make rules to permit the administration of the provisions <br/>
<a id="pl.78.26"></a><var>78.26</var>of this section.<br/>
<a id="pl.78.27"></a><var>78.27</var>(g) Any adjustments needed to correct prior misallocations must be made to <br/>
<a id="pl.78.28"></a><var>78.28</var>subsequent fire state aid apportionments.<br/>
<br/>
<a id="bill.5.15.0"></a><a id="pl.78.29"></a><var>78.29</var>    Sec. 15. Minnesota Statutes 2012, section 69.021, subdivision 7a, is amended to read:<br/>
<a id="pl.78.30"></a><var>78.30</var>    Subd. 7a. <b>Apportionment of police state aid.</b> (a) Subject to the reduction provided <br/>
<a id="pl.78.31"></a><var>78.31</var>for under subdivision 10, the commissioner shall apportion the police state aid to each <br/>
<a id="pl.78.32"></a><var>78.32</var>municipality and, to the each county, and to the Departments of Natural Resources and <br/>
<a id="pl.78.33"></a><var>78.33</var>Public Safety in the following manner:<br/>
<a id="pl.78.34"></a><var>78.34</var>(1) for all municipalities maintaining police departments, counties, the Department <br/>
<a id="pl.78.35"></a><var>78.35</var>of Natural Resources, and the Department of Public Safety, the police state aid must be <br/>
<a id="pl.79.1"></a><var>79.1</var>distributed in proportion to the relationship that the total number of peace officers, as <br/>
<a id="pl.79.2"></a><var>79.2</var>determined under section 
         <statute_ref>69.011, subdivision 1</statute_ref>, clause paragraph (g), and subdivision 2, <br/>
<a id="pl.79.3"></a><var>79.3</var>clause paragraph (b), employed by that employing unit for 12 calendar months and the <br/>
<a id="pl.79.4"></a><var>79.4</var>proportional or fractional number who were employed less than 12 months bears to the total <br/>
<a id="pl.79.5"></a><var>79.5</var>number of peace officers employed by all municipalities and, counties, the Departments of <br/>
<a id="pl.79.6"></a><var>79.6</var>Natural Resources and Public Safety, subject to any reduction under subdivision 10;<br/>
<a id="pl.79.7"></a><var>79.7</var>(2) for each municipality which contracts with the county for police service, a <br/>
<a id="pl.79.8"></a><var>79.8</var>proportionate amount of the state aid distributed to the county based on the full-time <br/>
<a id="pl.79.9"></a><var>79.9</var>equivalent number of peace officers providing contract service to that municipality must <br/>
<a id="pl.79.10"></a><var>79.10</var>be credited against the municipality's contract obligation; and<br/>
<a id="pl.79.11"></a><var>79.11</var>(3) for each municipality which contracts with another municipality for police <br/>
<a id="pl.79.12"></a><var>79.12</var>service, a proportionate amount of the state aid distributed to the municipality providing <br/>
<a id="pl.79.13"></a><var>79.13</var>contract service based on the full-time equivalent number of peace officers providing <br/>
<a id="pl.79.14"></a><var>79.14</var>contract service to that municipality on a full-time equivalent basis must be credited <br/>
<a id="pl.79.15"></a><var>79.15</var>against the contract obligation of the municipality receiving contract service.<br/>
<a id="pl.79.16"></a><var>79.16</var>(b) Any necessary additional adjustments must be made to subsequent police state <br/>
<a id="pl.79.17"></a><var>79.17</var>aid apportionments.<br/>
<br/>
<a id="bill.5.16.0"></a><a id="pl.79.18"></a><var>79.18</var>    Sec. 16. Minnesota Statutes 2012, section 69.021, subdivision 8, is amended to read:<br/>
<a id="pl.79.19"></a><var>79.19</var>    Subd. 8. <b>Population and market value.</b> (a) In computations relating to fire state aid <br/>
<a id="pl.79.20"></a><var>79.20</var>requiring the use of population figures, only official statewide federal census figures are <br/>
<a id="pl.79.21"></a><var>79.21</var>to may be used. Increases or decreases in population disclosed by reason of any special <br/>
<a id="pl.79.22"></a><var>79.22</var>census must not be taken into consideration.<br/>
<a id="pl.79.23"></a><var>79.23</var>(b) In calculations relating to fire state aid requiring the use of market value property <br/>
<a id="pl.79.24"></a><var>79.24</var>figures, only the latest available market value property figures may be used.<br/>
<br/>
<a id="bill.5.17.0"></a><a id="pl.79.25"></a><var>79.25</var>    Sec. 17. Minnesota Statutes 2012, section 69.021, subdivision 9, is amended to read:<br/>
<a id="pl.79.26"></a><var>79.26</var>    Subd. 9. <b>Appeal.</b> (a) In the event that a municipality, a county, a fire relief <br/>
<a id="pl.79.27"></a><var>79.27</var>association, a police relief association, the Department of Natural Resources, the <br/>
<a id="pl.79.28"></a><var>79.28</var>Department of Public Safety, or the voluntary statewide lump-sum volunteer firefighter <br/>
<a id="pl.79.29"></a><var>79.29</var>retirement plan, feels itself to be aggrieved, it may request the commissioner to review <br/>
<a id="pl.79.30"></a><var>79.30</var>and adjust the apportionment of funds within the county in the case of police state aid, or <br/>
<a id="pl.79.31"></a><var>79.31</var>within the state in the case of fire state aid.<br/>
<a id="pl.79.32"></a><var>79.32</var>(b) The decision of the commissioner is subject to appeal, review, and adjustment by <br/>
<a id="pl.79.33"></a><var>79.33</var>the district court in the county in which the applicable municipality, or fire department,<br/>
<a id="pl.79.34"></a><var>79.34</var> or police department is located or by the Ramsey County District Court with respect to <br/>
<a id="pl.80.1"></a><var>80.1</var>the Department of Natural Resources, the Department of Public Safety, or the voluntary <br/>
<a id="pl.80.2"></a><var>80.2</var>statewide lump-sum volunteer firefighter retirement plan.<br/>
<br/>
<a id="bill.5.18.0"></a><a id="pl.80.3"></a><var>80.3</var>    Sec. 18. Minnesota Statutes 2012, section 69.021, subdivision 10, is amended to read:<br/>
<a id="pl.80.4"></a><var>80.4</var>    Subd. 10. <b>Reduction in police state aid apportionment.</b> (a) The commissioner of <br/>
<a id="pl.80.5"></a><var>80.5</var>revenue shall reduce the apportionment of police state aid under subdivisions 5, paragraph <br/>
<a id="pl.80.6"></a><var>80.6</var>(b), 6, and 7a, for eligible employer units by the amount of any excess police state aid.<br/>
<a id="pl.80.7"></a><var>80.7</var>(b) "Excess police state aid" is:<br/>
<a id="pl.80.8"></a><var>80.8</var>(1) for counties and for municipalities in which police retirement coverage is <br/>
<a id="pl.80.9"></a><var>80.9</var>provided wholly by the public employees police and fire fund and all police officers are <br/>
<a id="pl.80.10"></a><var>80.10</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.80.11"></a><var>80.11</var>employer's total prior calendar year obligation as defined in paragraph (c), as certified by <br/>
<a id="pl.80.12"></a><var>80.12</var>the executive director of the Public Employees Retirement Association;<br/>
<a id="pl.80.13"></a><var>80.13</var>(2) for municipalities in which police retirement coverage is provided in part by the <br/>
<a id="pl.80.14"></a><var>80.14</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.80.15"></a><var>80.15</var>part by a local police consolidation account governed by chapter 353A, and established <br/>
<a id="pl.80.16"></a><var>80.16</var>before March 2, 1999, for which the municipality declined merger under section 
<statute_ref>353.665, <br/>
<a id="pl.80.17"></a><var>80.17</var>subdivision 1
</statute_ref>, or established after March 1, 1999, the amount in excess of the employer's <br/>
<a id="pl.80.18"></a><var>80.18</var>total prior calendar year obligation as defined in paragraph (c), plus the amount of the <br/>
<a id="pl.80.19"></a><var>80.19</var>employer's total prior calendar year obligation under section 
<statute_ref>353A.09, subdivision 5</statute_ref>, <br/>
<a id="pl.80.20"></a><var>80.20</var>paragraphs (a) and (b), as certified by the executive director of the Public Employees <br/>
<a id="pl.80.21"></a><var>80.21</var>Retirement Association;<br/>
<a id="pl.80.22"></a><var>80.22</var>(3) for municipalities in which police retirement coverage is provided by the public <br/>
<a id="pl.80.23"></a><var>80.23</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.80.24"></a><var>80.24</var>retirement coverage was provided by a police consolidation account under chapter <br/>
<a id="pl.80.25"></a><var>80.25</var>353A before July 1, 1999, and for which the municipality has an additional municipal <br/>
<a id="pl.80.26"></a><var>80.26</var>contribution under section 
<statute_ref>353.665, subdivision 8</statute_ref>, paragraph (b), the amount in excess of <br/>
<a id="pl.80.27"></a><var>80.27</var>the employer's total prior calendar year obligation as defined in paragraph (c), plus the <br/>
<a id="pl.80.28"></a><var>80.28</var>amount of any additional municipal contribution under section 
<statute_ref>353.665, subdivision 8</statute_ref>, <br/>
<a id="pl.80.29"></a><var>80.29</var>paragraph (b), until the year 2010, as certified by the executive director of the Public <br/>
<a id="pl.80.30"></a><var>80.30</var>Employees Retirement Association;<br/>
<a id="pl.80.31"></a><var>80.31</var>(4) (2) for municipalities in which police retirement coverage is provided in part by <br/>
<a id="pl.80.32"></a><var>80.32</var>the 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.80.33"></a><var>80.33</var>part by a local police relief association governed by sections 
<statute_ref>69.77</statute_ref> and 
<statute_ref>423A.01</statute_ref> the cities <br/>
<a id="pl.80.34"></a><var>80.34</var>of Fairmont and Minneapolis, the amount in excess of the employer's total prior calendar <br/>
<a id="pl.80.35"></a><var>80.35</var>year obligation as defined in paragraph (c), as certified by the executive director of the <br/>
<a id="pl.81.1"></a><var>81.1</var>public employees retirement association, plus the amount of the financial requirements of <br/>
<a id="pl.81.2"></a><var>81.2</var>the relief association certified to the applicable municipality during the prior calendar year <br/>
<a id="pl.81.3"></a><var>81.3</var>under section 69.77, subdivisions 4 and 5, reduced by the amount of member contributions <br/>
<a id="pl.81.4"></a><var>81.4</var>deducted from the covered salary of the relief association during the prior calendar year <br/>
<a id="pl.81.5"></a><var>81.5</var>under section 
<statute_ref>69.77, subdivision 3</statute_ref>, as certified by the chief administrative officer of the <br/>
<a id="pl.81.6"></a><var>81.6</var>applicable municipality any additional municipal contribution under section 353.668, <br/>
<a id="pl.81.7"></a><var>81.7</var>subdivision 6, or 353.669, subdivision 6;<br/>
<a id="pl.81.8"></a><var>81.8</var>(5) (3) for the Metropolitan Airports Commission, the amount in excess of the <br/>
<a id="pl.81.9"></a><var>81.9</var>commission's total prior calendar year obligation as defined in paragraph (c), as certified <br/>
<a id="pl.81.10"></a><var>81.10</var>by the executive director of the Public Employees Retirement Association; and<br/>
<a id="pl.81.11"></a><var>81.11</var>(6) (4) for the Department of Natural Resources and for the Department of Public <br/>
<a id="pl.81.12"></a><var>81.12</var>Safety, the amount in excess of the employer's total prior calendar year obligation under <br/>
<a id="pl.81.13"></a><var>81.13</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.81.14"></a><var>81.14</var>69.011, subdivision 1
         </statute_ref>, clause (g), as certified by the executive director of the Minnesota <br/>
<a id="pl.81.15"></a><var>81.15</var>State Retirement System.<br/>
<a id="pl.81.16"></a><var>81.16</var>(c) The employer's total prior calendar year obligation with respect to the public <br/>
<a id="pl.81.17"></a><var>81.17</var>employees police and fire plan under paragraph (b), clause (1), is the total prior calendar <br/>
<a id="pl.81.18"></a><var>81.18</var>year obligation under section 
         <statute_ref>353.65, subdivision 3</statute_ref>, for police officers as defined in <br/>
<a id="pl.81.19"></a><var>81.19</var>section 
         <statute_ref>353.64, subdivision 2</statute_ref>, and the actual total prior calendar year obligation under <br/>
<a id="pl.81.20"></a><var>81.20</var>section 
         <statute_ref>353.65, subdivision 3</statute_ref>, for firefighters, as defined in section 
         <statute_ref>353.64, subdivision <br/>
<a id="pl.81.21"></a><var>81.21</var>3
         </statute_ref>, but not to exceed for those firefighters the applicable following amounts employer <br/>
<a id="pl.81.22"></a><var>81.22</var>calendar year amount:<br/>
<table>
<col width="50px"/>
<col width="5"/>
<col width="35"/>
<col width="15"/>
<col width="10"/>
<tr>
<td><a id="pl.81.23"></a><var>81.23</var><br/>
</td>
<td></td>
<td>Municipality<br/>
</td>
<td align="right">Maximum Amount<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.81.24"></a><var>81.24</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.81.25"></a><var>81.25</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.81.26"></a><var>81.26</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.81.27"></a><var>81.27</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.81.28"></a><var>81.28</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.81.29"></a><var>81.29</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.81.30"></a><var>81.30</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.81.31"></a><var>81.31</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.81.32"></a><var>81.32</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.81.33"></a><var>81.33</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.81.34"></a><var>81.34</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.81.35"></a><var>81.35</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.81.36"></a><var>81.36</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.81.37"></a><var>81.37</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.81.38"></a><var>81.38</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.81.39"></a><var>81.39</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.82.1"></a><var>82.1</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.82.2"></a><var>82.2</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.82.3"></a><var>82.3</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.82.4"></a><var>82.4</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.82.5"></a><var>82.5</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.82.6"></a><var>82.6</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.82.7"></a><var>82.7</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.82.8"></a><var>82.8</var><br/>
</td>
<td></td>
<td>Lakeville<br/>
</td>
<td align="right">782.35<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.82.9"></a><var>82.9</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.82.10"></a><var>82.10</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.82.11"></a><var>82.11</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.82.12"></a><var>82.12</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.82.13"></a><var>82.13</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.82.14"></a><var>82.14</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.82.15"></a><var>82.15</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.82.16"></a><var>82.16</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.82.17"></a><var>82.17</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.82.18"></a><var>82.18</var><br/>
</td>
<td></td>
<td>Northfield<br/>
</td>
<td align="right">770.63<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.82.19"></a><var>82.19</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.82.20"></a><var>82.20</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.82.21"></a><var>82.21</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.82.22"></a><var>82.22</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.82.23"></a><var>82.23</var><br/>
</td>
<td></td>
<td>Rosemount<br/>
</td>
<td align="right">1,712.55<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.82.24"></a><var>82.24</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.82.25"></a><var>82.25</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.82.26"></a><var>82.26</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.82.27"></a><var>82.27</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.82.28"></a><var>82.28</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.82.29"></a><var>82.29</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.82.30"></a><var>82.30</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.82.31"></a><var>82.31</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.82.32"></a><var>82.32</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.82.33"></a><var>82.33</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.82.34"></a><var>82.34</var>(d) The total amount of excess police state aid must be deposited in the excess <br/>
<a id="pl.82.35"></a><var>82.35</var>police state-aid account in the general fund, administered and distributed as provided <br/>
<a id="pl.82.36"></a><var>82.36</var>in subdivision 11.<br/>
<br/>
<a id="bill.5.19.0"></a><a id="pl.82.37"></a><var>82.37</var>    Sec. 19. Minnesota Statutes 2012, section 69.021, subdivision 11, is amended to read:<br/>
<a id="pl.82.38"></a><var>82.38</var>    Subd. 11. <b>Excess police state-aid holding account.</b> (a) The excess police state-aid <br/>
<a id="pl.82.39"></a><var>82.39</var>holding account is established in the general fund. The excess police state-aid holding <br/>
<a id="pl.82.40"></a><var>82.40</var>account must be administered by the commissioner.<br/>
<a id="pl.83.1"></a><var>83.1</var>    (b) Excess police state aid determined according to subdivision 10, must be <br/>
<a id="pl.83.2"></a><var>83.2</var>deposited annually in the excess police state-aid holding account.<br/>
<a id="pl.83.3"></a><var>83.3</var>    (c) From the balance in the excess police state-aid holding account, $900,000 must <br/>
<a id="pl.83.4"></a><var>83.4</var>be canceled annually to the general fund.<br/>
<a id="pl.83.5"></a><var>83.5</var>    (d) If a police officer stress reduction program is created by law and money is <br/>
<a id="pl.83.6"></a><var>83.6</var>appropriated for that program, an amount equal to that appropriation must be transferred <br/>
<a id="pl.83.7"></a><var>83.7</var>to the administrator of that program from the balance in the excess police state-aid holding <br/>
<a id="pl.83.8"></a><var>83.8</var>account.<br/>
<a id="pl.83.9"></a><var>83.9</var>    (e) (d) On October 1 of each year, one-half of the balance of the excess police <br/>
<a id="pl.83.10"></a><var>83.10</var>state-aid holding account remaining after the deductions deduction under paragraphs<br/>
<a id="pl.83.11"></a><var>83.11</var> paragraph (c) and (d) is appropriated for additional amortization aid under section <br/>
<statute_ref><a id="pl.83.12"></a><var>83.12</var>423A.02, subdivision 1b
         </statute_ref>.<br/>
<a id="pl.83.13"></a><var>83.13</var>    (f) (e) Annually, the remaining balance in the excess police state-aid holding account, <br/>
<a id="pl.83.14"></a><var>83.14</var>after the deductions under paragraphs (c), and (d), and (e), cancels to the general fund.<br/>
<br/>
<a id="bill.5.20.0"></a><a id="pl.83.15"></a><var>83.15</var>    Sec. 20. Minnesota Statutes 2012, section 69.031, subdivision 1, is amended to read:<br/>
<a id="pl.83.16"></a><var>83.16</var>    Subdivision 1. <b>Commissioner's warrant.</b> (a) The commissioner of management <br/>
<a id="pl.83.17"></a><var>83.17</var>and budget shall issue to the Public Employees Retirement Association on behalf of <br/>
<a id="pl.83.18"></a><var>83.18</var>a municipality or independent nonprofit firefighting corporation that is a member of the <br/>
<a id="pl.83.19"></a><var>83.19</var>voluntary statewide lump-sum volunteer firefighter retirement plan under chapter 353G, <br/>
<a id="pl.83.20"></a><var>83.20</var>to the Department of Natural Resources, the Department of Public Safety, or to the <br/>
<a id="pl.83.21"></a><var>83.21</var>county, municipality, or independent nonprofit firefighting corporation certified to the <br/>
<a id="pl.83.22"></a><var>83.22</var>commissioner of management and budget by the commissioner a warrant for an amount <br/>
<a id="pl.83.23"></a><var>83.23</var>equal to the amount of fire state aid or police state aid, whichever applies, certified for the <br/>
<a id="pl.83.24"></a><var>83.24</var>applicable state aid recipient by the commissioner under section 
         <statute_ref>69.021</statute_ref>.<br/>
<a id="pl.83.25"></a><var>83.25</var>(b) Fire state aid and police state aid is payable on October 1 annually. The amount <br/>
<a id="pl.83.26"></a><var>83.26</var>of state aid due and not paid by October 1 accrues interest payable to the state aid recipient <br/>
<a id="pl.83.27"></a><var>83.27</var>at the rate of one percent for each month or part of a month that the amount remains <br/>
<a id="pl.83.28"></a><var>83.28</var>unpaid after October 1.<br/>
<br/>
<a id="bill.5.21.0"></a><a id="pl.83.29"></a><var>83.29</var>    Sec. 21. Minnesota Statutes 2012, section 69.031, subdivision 3, is amended to read:<br/>
<a id="pl.83.30"></a><var>83.30</var>    Subd. 3. <b>Appropriations.</b> There is hereby appropriated annually from the state <br/>
<a id="pl.83.31"></a><var>83.31</var>general fund to the commissioner of revenue an amount amounts sufficient to make the <br/>
<a id="pl.83.32"></a><var>83.32</var>police state aid payments and the fire state aid payments specified in this section and <br/>
<a id="pl.83.33"></a><var>83.33</var>section 
         <statute_ref>69.021</statute_ref>.<br/>
<br/>
<a id="bill.5.22.0"></a><a id="pl.84.1"></a><var>84.1</var>    Sec. 22. Minnesota Statutes 2012, section 69.031, subdivision 5, is amended to read:<br/>
<a id="pl.84.2"></a><var>84.2</var>    Subd. 5. <b>Deposit of state aid.</b> (a) If the municipality or the independent nonprofit <br/>
<a id="pl.84.3"></a><var>84.3</var>firefighting corporation is covered by the voluntary statewide lump-sum volunteer <br/>
<a id="pl.84.4"></a><var>84.4</var>firefighter retirement plan under chapter 353G, the executive director shall credit the fire <br/>
<a id="pl.84.5"></a><var>84.5</var>state aid against future municipal contribution requirements under section 
         <statute_ref>353G.08 </statute_ref>and <br/>
<a id="pl.84.6"></a><var>84.6</var>shall notify the municipality or independent nonprofit firefighting corporation of the fire <br/>
<a id="pl.84.7"></a><var>84.7</var>state aid so credited at least annually. If the municipality or the independent nonprofit <br/>
<a id="pl.84.8"></a><var>84.8</var>firefighting corporation is not covered by the voluntary statewide lump-sum volunteer <br/>
<a id="pl.84.9"></a><var>84.9</var>firefighter retirement plan, the municipal treasurer shall, within 30 days after receipt, <br/>
<a id="pl.84.10"></a><var>84.10</var>transmit the fire state aid to the treasurer of the duly incorporated firefighters' relief <br/>
<a id="pl.84.11"></a><var>84.11</var>association if there is one organized and the association has filed a financial report with the <br/>
<a id="pl.84.12"></a><var>84.12</var>municipality. If the relief association has not filed a financial report with the municipality, <br/>
<a id="pl.84.13"></a><var>84.13</var>the municipal treasurer shall delay transmission of the fire state aid to the relief association <br/>
<a id="pl.84.14"></a><var>84.14</var>until the complete financial report is filed. If the municipality or independent nonprofit <br/>
<a id="pl.84.15"></a><var>84.15</var>firefighting corporation is not covered by the voluntary statewide lump-sum volunteer <br/>
<a id="pl.84.16"></a><var>84.16</var>firefighter retirement plan, if there is no relief association organized, or if the association <br/>
<a id="pl.84.17"></a><var>84.17</var>has dissolved or has been removed as trustees of state aid, then the treasurer of the <br/>
<a id="pl.84.18"></a><var>84.18</var>municipality shall deposit the money in the municipal treasury and the money may be <br/>
<a id="pl.84.19"></a><var>84.19</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.84.20"></a><var>84.20</var>payment of the employer contribution requirement with respect to firefighters covered by <br/>
<a id="pl.84.21"></a><var>84.21</var>the public employees police and fire retirement plan under section 
         <statute_ref>353.65, subdivision 3</statute_ref>.<br/>
<a id="pl.84.22"></a><var>84.22</var>(b) The municipal treasurer, upon receipt of the police state aid, shall disburse the <br/>
<a id="pl.84.23"></a><var>84.23</var>police state aid in the following manner:<br/>
<a id="pl.84.24"></a><var>84.24</var>(1) For a municipality in which a local police relief association exists and all peace <br/>
<a id="pl.84.25"></a><var>84.25</var>officers are members of the association, the total state aid must be transmitted to the <br/>
<a id="pl.84.26"></a><var>84.26</var>treasurer of the relief association within 30 days of the date of receipt, and the treasurer <br/>
<a id="pl.84.27"></a><var>84.27</var>of the relief association shall immediately deposit the total state aid in the special fund <br/>
<a id="pl.84.28"></a><var>84.28</var>of the relief association;<br/>
<a id="pl.84.29"></a><var>84.29</var>(2) (b) For a municipality in which police retirement coverage is provided by the <br/>
<a id="pl.84.30"></a><var>84.30</var>public employees police and fire fund and all peace officers are members of the fund, <br/>
<a id="pl.84.31"></a><var>84.31</var>including municipalities covered by section 
         <statute_ref>353.665</statute_ref>, the total state aid must be applied <br/>
<a id="pl.84.32"></a><var>84.32</var>toward the municipality's employer contribution to the public employees police and <br/>
<a id="pl.84.33"></a><var>84.33</var>fire fund under sections 
         <statute_ref>353.65, subdivision 3</statute_ref>, and 353.665 353.668, subdivision 8 6, <br/>
<a id="pl.84.34"></a><var>84.34</var>paragraph (b) or 353.669, subdivision 6, if applicable; or.<br/>
<a id="pl.84.35"></a><var>84.35</var>(3) For a municipality other than a city of the first class with a population of more <br/>
<a id="pl.84.36"></a><var>84.36</var>than 300,000 in which both a police relief association exists and police retirement <br/>
<a id="pl.85.1"></a><var>85.1</var>coverage is provided in part by the public employees police and fire fund, the municipality <br/>
<a id="pl.85.2"></a><var>85.2</var>may elect at its option to transmit the total state aid to the treasurer of the relief association <br/>
<a id="pl.85.3"></a><var>85.3</var>as provided in clause (1), to use the total state aid to apply toward the municipality's <br/>
<a id="pl.85.4"></a><var>85.4</var>employer contribution to the public employees police and fire fund subject to all the <br/>
<a id="pl.85.5"></a><var>85.5</var>provisions set forth in clause (2), or to allot the total state aid proportionately to be <br/>
<a id="pl.85.6"></a><var>85.6</var>transmitted to the police relief association as provided in this subdivision and to apply <br/>
<a id="pl.85.7"></a><var>85.7</var>toward the municipality's employer contribution to the public employees police and fire <br/>
<a id="pl.85.8"></a><var>85.8</var>fund subject to the provisions of clause (2) on the basis of the respective number of active <br/>
<a id="pl.85.9"></a><var>85.9</var>full-time peace officers, as defined in section 
<statute_ref>69.011, subdivision 1</statute_ref>, clause (g).<br/>
<a id="pl.85.10"></a><var>85.10</var>For a city of the first class with a population of more than 300,000, in addition, the <br/>
<a id="pl.85.11"></a><var>85.11</var>city may elect to allot the appropriate portion of the total police state aid to apply toward <br/>
<a id="pl.85.12"></a><var>85.12</var>the employer contribution of the city to the public employees police and fire fund based <br/>
<a id="pl.85.13"></a><var>85.13</var>on the covered salary of police officers covered by the fund each payroll period and to <br/>
<a id="pl.85.14"></a><var>85.14</var>transmit the balance to the police relief association; or<br/>
<a id="pl.85.15"></a><var>85.15</var>(4) For a municipality in which police retirement coverage is provided in part by <br/>
<a id="pl.85.16"></a><var>85.16</var>the public employees police and fire fund and in part by a local police consolidation <br/>
<a id="pl.85.17"></a><var>85.17</var>account governed by chapter 353A and established before March 2, 1999, for which the <br/>
<a id="pl.85.18"></a><var>85.18</var>municipality declined merger under section 
<statute_ref>353.665, subdivision 1</statute_ref>, or established after <br/>
<a id="pl.85.19"></a><var>85.19</var>March 1, 1999, the total police state aid must be applied towards the municipality's total <br/>
<a id="pl.85.20"></a><var>85.20</var>employer contribution to the public employees police and fire fund and to the local police <br/>
<a id="pl.85.21"></a><var>85.21</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.85.22"></a><var>85.22</var>(c) The county treasurer, upon receipt of the police state aid for the county, shall <br/>
<a id="pl.85.23"></a><var>85.23</var>apply the total state aid toward the county's employer contribution to the public employees <br/>
<a id="pl.85.24"></a><var>85.24</var>police and fire fund under section 
         <statute_ref>353.65, subdivision 3</statute_ref>.<br/>
<a id="pl.85.25"></a><var>85.25</var>(d) The designated Metropolitan Airports Commission official, upon receipt of the <br/>
<a id="pl.85.26"></a><var>85.26</var>police state aid for the Metropolitan Airports Commission, shall apply the total police <br/>
<a id="pl.85.27"></a><var>85.27</var>state aid toward the commission's employer contribution for police officers to the public <br/>
<a id="pl.85.28"></a><var>85.28</var>employees police and fire plan under section 
         <statute_ref>353.65, subdivision 3</statute_ref>.<br/>
<a id="pl.85.29"></a><var>85.29</var>(e) The police state aid apportioned to the Departments of Public Safety and Natural <br/>
<a id="pl.85.30"></a><var>85.30</var>Resources under section 
         <statute_ref>69.021, subdivision 7a</statute_ref>, is appropriated to the commissioner of <br/>
<a id="pl.85.31"></a><var>85.31</var>management and budget for transfer to the funds and accounts from which the salaries of <br/>
<a id="pl.85.32"></a><var>85.32</var>peace officers certified under section 
         <statute_ref>69.011, subdivision 2b</statute_ref>, are paid. The commissioner <br/>
<a id="pl.85.33"></a><var>85.33</var>of revenue shall certify to the commissioners of public safety, natural resources, and <br/>
<a id="pl.85.34"></a><var>85.34</var>management and budget the amounts to be transferred from the appropriation for police <br/>
<a id="pl.85.35"></a><var>85.35</var>state aid. The commissioners of public safety and natural resources shall certify to the <br/>
<a id="pl.85.36"></a><var>85.36</var>commissioner of management and budget the amounts to be credited to each of the funds <br/>
<a id="pl.86.1"></a><var>86.1</var>and accounts from which the peace officers employed by their respective departments are <br/>
<a id="pl.86.2"></a><var>86.2</var>paid. Each commissioner shall allocate the police state aid first for employer contributions <br/>
<a id="pl.86.3"></a><var>86.3</var>for employees funded from the general fund and then for employer contributions for <br/>
<a id="pl.86.4"></a><var>86.4</var>employees funded from other funds. For peace officers whose salaries are paid from the <br/>
<a id="pl.86.5"></a><var>86.5</var>general fund, the amounts transferred from the appropriation for police state aid must <br/>
<a id="pl.86.6"></a><var>86.6</var>be canceled to the general fund.<br/>
<br/>
<a id="bill.5.23.0"></a><a id="pl.86.7"></a><var>86.7</var>    Sec. 23. Minnesota Statutes 2012, section 69.041, is amended to read:<br/>
<a id="pl.86.8"></a><var>86.8</var><b>69.041 SHORTFALL FROM GENERAL FUND.</b><br/>
<a id="pl.86.9"></a><var>86.9</var>(a) If the annual funding requirements of fire or police relief associations or <br/>
<a id="pl.86.10"></a><var>86.10</var>consolidation accounts under sections 69.77,
<statute_ref>69.771</statute_ref> to 
         <statute_ref>69.775</statute_ref>, or
<statute_ref>353A.09</statute_ref>, or sections <br/>
<a id="pl.86.11"></a><var>86.11</var>31 to 42, exceed all applicable revenue sources of a given year, including the insurance <br/>
<a id="pl.86.12"></a><var>86.12</var>premium taxes funding the applicable fire or police state aid as set under section 
         <statute_ref>297I.05, <br/>
<a id="pl.86.13"></a><var>86.13</var>subdivisions 2, 3, and 4
         </statute_ref>, the shortfall in the annual funding requirements must be paid <br/>
<a id="pl.86.14"></a><var>86.14</var>from the general fund to the extent appropriated by the legislature.<br/>
<a id="pl.86.15"></a><var>86.15</var>(b) Nothing in this section may be deemed to relieve any municipality from its <br/>
<a id="pl.86.16"></a><var>86.16</var>obligation to a relief association or consolidation account under law.<br/>
<br/>
<a id="bill.5.24.0"></a><a id="pl.86.17"></a><var>86.17</var>    Sec. 24. Minnesota Statutes 2012, section 69.051, subdivision 1, is amended to read:<br/>
<a id="pl.86.18"></a><var>86.18</var>    Subdivision 1. <b>Financial report and audit.</b> (a) The board of each salaried <br/>
<a id="pl.86.19"></a><var>86.19</var>firefighters the Bloomington Fire Department Relief Association, police relief association,<br/>
<a id="pl.86.20"></a><var>86.20</var> and each volunteer firefighters relief association as defined in section 
         <statute_ref>424A.001, <br/>
<a id="pl.86.21"></a><var>86.21</var>subdivision 4
         </statute_ref>, with assets of at least $200,000 or liabilities of at least $200,000 in the prior <br/>
<a id="pl.86.22"></a><var>86.22</var>year or in any previous year, according to the applicable actuarial valuation or according <br/>
<a id="pl.86.23"></a><var>86.23</var>to the financial report if no valuation is required, shall prepare a financial report covering <br/>
<a id="pl.86.24"></a><var>86.24</var>the special and general funds of the relief association for the preceding fiscal year, file the <br/>
<a id="pl.86.25"></a><var>86.25</var>financial report, and submit financial statements.<br/>
<a id="pl.86.26"></a><var>86.26</var>(b) The financial report must contain financial statements and disclosures which <br/>
<a id="pl.86.27"></a><var>86.27</var>present the true financial condition of the relief association and the results of relief <br/>
<a id="pl.86.28"></a><var>86.28</var>association operations in conformity with generally accepted accounting principles and in <br/>
<a id="pl.86.29"></a><var>86.29</var>compliance with the regulatory, financing and funding provisions of this chapter and any <br/>
<a id="pl.86.30"></a><var>86.30</var>other applicable laws. The financial report must be countersigned by:<br/>
<a id="pl.86.31"></a><var>86.31</var>(1) the municipal clerk or clerk-treasurer of the municipality in which the relief <br/>
<a id="pl.86.32"></a><var>86.32</var>association is located if the relief association is a firefighters relief association which is <br/>
<a id="pl.86.33"></a><var>86.33</var>directly associated with a municipal fire department or is a police relief association; or<br/>
<a id="pl.87.1"></a><var>87.1</var>(2) by the municipal clerk or clerk-treasurer of the largest municipality in population <br/>
<a id="pl.87.2"></a><var>87.2</var>which contracts with the independent nonprofit firefighting corporation if the volunteer <br/>
<a id="pl.87.3"></a><var>87.3</var>firefighter relief association is a subsidiary of an independent nonprofit firefighting <br/>
<a id="pl.87.4"></a><var>87.4</var>corporation and by the secretary of the independent nonprofit firefighting corporation; or<br/>
<a id="pl.87.5"></a><var>87.5</var>(3) by the chief financial official of the county in which the volunteer firefighter <br/>
<a id="pl.87.6"></a><var>87.6</var>relief association is located or primarily located if the relief association is associated with <br/>
<a id="pl.87.7"></a><var>87.7</var>a fire department that is not located in or associated with an organized municipality.<br/>
<a id="pl.87.8"></a><var>87.8</var>(c) The financial report must be retained in its office for public inspection and must <br/>
<a id="pl.87.9"></a><var>87.9</var>be filed with the governing body of the government subdivision in which the associated <br/>
<a id="pl.87.10"></a><var>87.10</var>fire department is located after the close of the fiscal year. One copy of the financial report <br/>
<a id="pl.87.11"></a><var>87.11</var>must be furnished to the state auditor after the close of the fiscal year.<br/>
<a id="pl.87.12"></a><var>87.12</var>(d) Audited financial statements must be attested to by a certified public accountant <br/>
<a id="pl.87.13"></a><var>87.13</var>or by the state auditor and must be filed with the state auditor within 180 days after the <br/>
<a id="pl.87.14"></a><var>87.14</var>close of the fiscal year. The state auditor may accept this report in lieu of the report <br/>
<a id="pl.87.15"></a><var>87.15</var>required in paragraph (c).<br/>
<br/>
<a id="bill.5.25.0"></a><a id="pl.87.16"></a><var>87.16</var>    Sec. 25. Minnesota Statutes 2012, section 69.051, subdivision 1a, is amended to read:<br/>
<a id="pl.87.17"></a><var>87.17</var>    Subd. 1a. <b>Financial statement.</b> (a) The board of each volunteer firefighters relief <br/>
<a id="pl.87.18"></a><var>87.18</var>association, as defined in section 
         <statute_ref>424A.001, subdivision 4</statute_ref>, that is not required to file a <br/>
<a id="pl.87.19"></a><var>87.19</var>financial report and audit under subdivision 1 must prepare a detailed statement of the <br/>
<a id="pl.87.20"></a><var>87.20</var>financial affairs for the preceding fiscal year of the relief association's special and general <br/>
<a id="pl.87.21"></a><var>87.21</var>funds in the style and form prescribed by the state auditor. The detailed statement must <br/>
<a id="pl.87.22"></a><var>87.22</var>show:<br/>
<a id="pl.87.23"></a><var>87.23</var>(1) the sources and amounts of all money received;<br/>
<a id="pl.87.24"></a><var>87.24</var>(2) all disbursements, accounts payable and accounts receivable;<br/>
<a id="pl.87.25"></a><var>87.25</var>(3) the amount of money remaining in the treasury;<br/>
<a id="pl.87.26"></a><var>87.26</var>(4)  total assets, including a listing of all investments;<br/>
<a id="pl.87.27"></a><var>87.27</var>(5) the accrued liabilities; and<br/>
<a id="pl.87.28"></a><var>87.28</var>(6) all other items necessary to show accurately the revenues and expenditures and <br/>
<a id="pl.87.29"></a><var>87.29</var>financial position of the relief association.<br/>
<a id="pl.87.30"></a><var>87.30</var>(b) The detailed financial statement required under paragraph (a) must be certified <br/>
<a id="pl.87.31"></a><var>87.31</var>by an independent public accountant or auditor or by the auditor or accountant who <br/>
<a id="pl.87.32"></a><var>87.32</var>regularly examines or audits the financial transactions of the municipality. In addition to <br/>
<a id="pl.87.33"></a><var>87.33</var>certifying the financial condition of the special and general funds of the relief association, <br/>
<a id="pl.87.34"></a><var>87.34</var>the accountant or auditor conducting the examination shall give an opinion as to the <br/>
<a id="pl.87.35"></a><var>87.35</var>condition of the special and general funds of the relief association, and shall comment <br/>
<a id="pl.88.1"></a><var>88.1</var>upon any exceptions to the report. The independent accountant or auditor must have at <br/>
<a id="pl.88.2"></a><var>88.2</var>least five years of public accounting, auditing, or similar experience, and must not be an <br/>
<a id="pl.88.3"></a><var>88.3</var>active, inactive, or retired member of the relief association or the fire or police department.<br/>
<a id="pl.88.4"></a><var>88.4</var>(c) The detailed statement required under paragraph (a) must be countersigned by:<br/>
<a id="pl.88.5"></a><var>88.5</var>(1) the municipal clerk or clerk-treasurer of the municipality; or<br/>
<a id="pl.88.6"></a><var>88.6</var>(2) where applicable, by the municipal clerk or clerk-treasurer of the largest <br/>
<a id="pl.88.7"></a><var>88.7</var>municipality in population which contracts with the independent nonprofit firefighting <br/>
<a id="pl.88.8"></a><var>88.8</var>corporation if the relief association is a subsidiary of an independent nonprofit firefighting <br/>
<a id="pl.88.9"></a><var>88.9</var>corporation and by the secretary of the independent nonprofit firefighting corporation; or<br/>
<a id="pl.88.10"></a><var>88.10</var>(3) by the chief financial official of the county in which the volunteer firefighter <br/>
<a id="pl.88.11"></a><var>88.11</var>relief association is located or primarily located if the relief association is associated with <br/>
<a id="pl.88.12"></a><var>88.12</var>a fire department that is not located in or associated with an organized municipality.<br/>
<a id="pl.88.13"></a><var>88.13</var>(d) The volunteer firefighters' relief association board must file the detailed statement <br/>
<a id="pl.88.14"></a><var>88.14</var>required under paragraph (a) in the relief association office for public inspection and <br/>
<a id="pl.88.15"></a><var>88.15</var>present it to the city council governing body of the municipality within 45 days after the <br/>
<a id="pl.88.16"></a><var>88.16</var>close of the fiscal year, and must submit a copy of the detailed statement to the state <br/>
<a id="pl.88.17"></a><var>88.17</var>auditor within 90 days of the close of the fiscal year.<br/>
<br/>
<a id="bill.5.26.0"></a><a id="pl.88.18"></a><var>88.18</var>    Sec. 26. Minnesota Statutes 2012, section 69.051, subdivision 1b, is amended to read:<br/>
<a id="pl.88.19"></a><var>88.19</var>    Subd. 1b. <b>Qualification.</b> The state auditor may, upon a demonstration by a relief <br/>
<a id="pl.88.20"></a><var>88.20</var>association of hardship or an inability to conform, extend the deadline for reports under <br/>
<a id="pl.88.21"></a><var>88.21</var>subdivisions 1 or 1a, but not beyond November 30th following the due date. If the <br/>
<a id="pl.88.22"></a><var>88.22</var>reports are not received by November 30th, the municipality or relief association will <br/>
<a id="pl.88.23"></a><var>88.23</var>forfeit forfeits its current year state aid, and, until the state auditor receives the required <br/>
<a id="pl.88.24"></a><var>88.24</var>information, the relief association or municipality will be is ineligible to receive any <br/>
<a id="pl.88.25"></a><var>88.25</var>future state aid. A municipality or police or firefighters' relief association shall does not <br/>
<a id="pl.88.26"></a><var>88.26</var>qualify initially to receive, or be entitled subsequently to retain, state aid pursuant to under <br/>
<a id="pl.88.27"></a><var>88.27</var>this chapter if the financial reporting requirement or the applicable requirements of this <br/>
<a id="pl.88.28"></a><var>88.28</var>chapter or any other statute or special law have not been complied with or are not fulfilled.<br/>
<br/>
<a id="bill.5.27.0"></a><a id="pl.88.29"></a><var>88.29</var>    Sec. 27. Minnesota Statutes 2012, section 69.051, subdivision 2, is amended to read:<br/>
<a id="pl.88.30"></a><var>88.30</var>    Subd. 2. <b>Treasurers bond.</b> No (a) The treasurer of a the Bloomington Fire <br/>
<a id="pl.88.31"></a><var>88.31</var>Department Relief Association governed by section 69.77 shall may not enter upon duties <br/>
<a id="pl.88.32"></a><var>88.32</var>without having given the association a bond in a reasonable amount acceptable to the <br/>
<a id="pl.88.33"></a><var>88.33</var>municipality for the faithful discharge of duties according to law.<br/>
<a id="pl.89.1"></a><var>89.1</var>(b) No treasurer of a relief association governed by sections 
         <statute_ref>69.771</statute_ref> to 
         <statute_ref>69.776</statute_ref> shall<br/>
<a id="pl.89.2"></a><var>89.2</var> may enter upon the duties of the office until the treasurer has given the association a good <br/>
<a id="pl.89.3"></a><var>89.3</var>and sufficient bond in an amount equal to at least ten percent of the assets of the relief <br/>
<a id="pl.89.4"></a><var>89.4</var>association; however, the amount of the bond need not exceed $500,000.<br/>
<br/>
<a id="bill.5.28.0"></a><a id="pl.89.5"></a><var>89.5</var>    Sec. 28. Minnesota Statutes 2012, section 69.051, subdivision 3, is amended to read:<br/>
<a id="pl.89.6"></a><var>89.6</var>    Subd. 3. <b>Report by certain municipalities.</b> (a) The chief administrative officer <br/>
<a id="pl.89.7"></a><var>89.7</var>of each municipality which has an organized fire department but which does not have a <br/>
<a id="pl.89.8"></a><var>89.8</var>firefighters' relief association governed by section 
         <statute_ref>69.77</statute_ref> or sections 
         <statute_ref>69.771</statute_ref> to 
         <statute_ref>69.775</statute_ref> and <br/>
<a id="pl.89.9"></a><var>89.9</var>which is not exempted under paragraph (b) shall annually prepare a detailed financial <br/>
<a id="pl.89.10"></a><var>89.10</var>report of the receipts and disbursements by the municipality for fire protection service <br/>
<a id="pl.89.11"></a><var>89.11</var>during the preceding calendar year, on a form prescribed by the state auditor. The financial <br/>
<a id="pl.89.12"></a><var>89.12</var>report must contain any information which the state auditor deems necessary to disclose <br/>
<a id="pl.89.13"></a><var>89.13</var>the sources of receipts and the purpose of disbursements for fire protection service. <br/>
<a id="pl.89.14"></a><var>89.14</var>The financial report must be signed by the municipal clerk or clerk-treasurer of the <br/>
<a id="pl.89.15"></a><var>89.15</var>municipality. The financial report must be filed by the municipal clerk or clerk-treasurer <br/>
<a id="pl.89.16"></a><var>89.16</var>with the state auditor on or before July 1 annually. The municipality shall does not qualify <br/>
<a id="pl.89.17"></a><var>89.17</var>initially to receive, or be and is not entitled subsequently to retain, state aid under this <br/>
<a id="pl.89.18"></a><var>89.18</var>chapter if the financial reporting requirement or the applicable requirements of this chapter <br/>
<a id="pl.89.19"></a><var>89.19</var>or any other statute or special law have not been complied with or are not fulfilled.<br/>
<a id="pl.89.20"></a><var>89.20</var>(b) Each municipality that has an organized fire department and provides retirement <br/>
<a id="pl.89.21"></a><var>89.21</var>coverage to its firefighters through the voluntary statewide lump-sum volunteer firefighter <br/>
<a id="pl.89.22"></a><var>89.22</var>retirement plan under chapter 353G qualifies to have fire state aid transmitted to and <br/>
<a id="pl.89.23"></a><var>89.23</var>retained in the statewide lump-sum volunteer firefighter retirement fund without filing <br/>
<a id="pl.89.24"></a><var>89.24</var>a detailed financial report if the executive director of the Public Employees Retirement <br/>
<a id="pl.89.25"></a><var>89.25</var>Association certifies compliance by the municipality with the requirements of sections <br/>
<statute_ref><a id="pl.89.26"></a><var>89.26</var>353G.04
         </statute_ref> and 
         <statute_ref>353G.08</statute_ref>, paragraph (e), and certifies conformity by the applicable fire chief <br/>
<a id="pl.89.27"></a><var>89.27</var>with the requirements of section 
         <statute_ref>353G.07</statute_ref>.<br/>
<br/>
<a id="bill.5.29.0"></a><a id="pl.89.28"></a><var>89.28</var>    Sec. 29. Minnesota Statutes 2012, section 69.051, subdivision 4, is amended to read:<br/>
<a id="pl.89.29"></a><var>89.29</var>    Subd. 4. <b>Notification by commissioner and state auditor.</b> (a) The state auditor,<br/>
<a id="pl.89.30"></a><var>89.30</var> in performing an audit or examination, shall notify the Legislative Commission on <br/>
<a id="pl.89.31"></a><var>89.31</var>Pensions and Retirement if the audit or examination reveals malfeasance, misfeasance, or <br/>
<a id="pl.89.32"></a><var>89.32</var>nonfeasance in office by relief association officials or municipal officials.<br/>
<a id="pl.90.1"></a><var>90.1</var>(b) The commissioner shall notify the Legislative Commission on Pensions and <br/>
<a id="pl.90.2"></a><var>90.2</var>Retirement if the state auditor has not filed the required financial compliance reports <br/>
<a id="pl.90.3"></a><var>90.3</var>by July 1.<br/>
<br/>
<a id="bill.5.30.0"></a><a id="pl.90.4"></a><var>90.4</var>    Sec. 30. Minnesota Statutes 2012, section 69.33, is amended to read:<br/>
<a id="pl.90.5"></a><var>90.5</var><b>69.33 REPORT; AMOUNT OF PREMIUMS RECEIVED BY INSURANCE </b><br/>
<a id="pl.90.6"></a><var>90.6</var><b>COMPANIES.</b><br/>
<a id="pl.90.7"></a><var>90.7</var>For purposes of the first class city fire insurance premium tax surcharge aid program <br/>
<a id="pl.90.8"></a><var>90.8</var>under section 297I.10, the commissioner shall enclose in the annual statement blank that is <br/>
<a id="pl.90.9"></a><var>90.9</var>sent to all fire insurance companies doing business in this state a blank form containing <br/>
<a id="pl.90.10"></a><var>90.10</var>the names of all cities of the first class and require these companies, at the time of making <br/>
<a id="pl.90.11"></a><var>90.11</var>their annual statements to the commissioner, to state on these blanks the amount of <br/>
<a id="pl.90.12"></a><var>90.12</var>premiums received by them upon properties insured within the corporate limits of the <br/>
<a id="pl.90.13"></a><var>90.13</var>cities named thereon during the year ending December 31st last past. Thereafter, before <br/>
<a id="pl.90.14"></a><var>90.14</var>July first each year, the commissioner shall certify to the commissioner of management <br/>
<a id="pl.90.15"></a><var>90.15</var>and budget the information thus obtained, together with the amount of the tax for the <br/>
<a id="pl.90.16"></a><var>90.16</var>benefit of the pension plans covering firefighters in cities of the first class paid in such <br/>
<a id="pl.90.17"></a><var>90.17</var>year by these companies upon these insurance premiums.<br/>
<br/>
<a id="bill.5.31.0"></a><a id="pl.90.18"></a><var>90.18</var>    Sec. 31. Minnesota Statutes 2012, section 69.77, subdivision 1, is amended to read:<br/>
<a id="pl.90.19"></a><var>90.19</var>    Subdivision 1. <b>Conditioned employer support for </b><b>a</b><b> </b><b>the Bloomington Fire </b><br/>
<a id="pl.90.20"></a><var>90.20</var><b>Department </b><b>Relief Association.</b> (a) Notwithstanding any law to the contrary, only <br/>
<a id="pl.90.21"></a><var>90.21</var>if the municipality city of Bloomington and the Bloomington Fire Department Relief <br/>
<a id="pl.90.22"></a><var>90.22</var>Association comply with the provisions of this section, a municipality the city of <br/>
<a id="pl.90.23"></a><var>90.23</var>Bloomington may contribute public funds, including any applicable police or fire state <br/>
<a id="pl.90.24"></a><var>90.24</var>aid, or levy property taxes for the support of a police or firefighters' the Bloomington <br/>
<a id="pl.90.25"></a><var>90.25</var>Fire Department Relief Association, enumerated in subdivision 1a, however organized, <br/>
<a id="pl.90.26"></a><var>90.26</var>which provides retirement coverage or pays a service pension to a retired police officer or <br/>
<a id="pl.90.27"></a><var>90.27</var>firefighter or a retirement benefit to a surviving dependent of either an active or retired <br/>
<a id="pl.90.28"></a><var>90.28</var>police officer or firefighter, and for the operation and maintenance of the relief association.<br/>
<a id="pl.90.29"></a><var>90.29</var>(b) The commissioner shall not include in the apportionment of police or fire state <br/>
<a id="pl.90.30"></a><var>90.30</var>aid to the county auditor under section 
<statute_ref>69.021, subdivision 6</statute_ref>, any municipality in which <br/>
<a id="pl.90.31"></a><var>90.31</var>there exists a local police or salaried firefighters' relief association as enumerated in <br/>
<a id="pl.90.32"></a><var>90.32</var>subdivision 1a which the city of Bloomington if the Bloomington Fire Department Relief <br/>
<a id="pl.90.33"></a><var>90.33</var>Association does not comply with the provisions of this section or the provisions of any <br/>
<a id="pl.90.34"></a><var>90.34</var>applicable special law relating to the funding or financing of the association and that <br/>
<a id="pl.91.1"></a><var>91.1</var>municipality the city of Bloomington may not qualify initially to receive, or be entitled <br/>
<a id="pl.91.2"></a><var>91.2</var>subsequently to retain, fire state aid under sections 
         <statute_ref>69.011</statute_ref> to 
         <statute_ref>69.051</statute_ref> until the reason <br/>
<a id="pl.91.3"></a><var>91.3</var>for the disqualification is remedied, whereupon the municipality city of Bloomington, <br/>
<a id="pl.91.4"></a><var>91.4</var>if otherwise qualified, is entitled to again receive fire state aid for the year occurring <br/>
<a id="pl.91.5"></a><var>91.5</var>immediately subsequent to the year in which the disqualification is remedied.<br/>
<a id="pl.91.6"></a><var>91.6</var>(c) The state auditor and the commissioner shall determine if a municipality with a <br/>
<a id="pl.91.7"></a><var>91.7</var>local police or salaried firefighters' relief association fails the city of Bloomington and the <br/>
<a id="pl.91.8"></a><var>91.8</var>Bloomington Fire Department Relief Association fail to comply with the provisions of <br/>
<a id="pl.91.9"></a><var>91.9</var>this section or the funding or financing provisions of any applicable special law.<br/>
<br/>
<a id="bill.5.32.0"></a><a id="pl.91.10"></a><var>91.10</var>    Sec. 32. Minnesota Statutes 2012, section 69.77, subdivision 2, is amended to read:<br/>
<a id="pl.91.11"></a><var>91.11</var>    Subd. 2. <b>Inapplicable penalty.</b> The penalty provided for in subdivision 1 does not <br/>
<a id="pl.91.12"></a><var>91.12</var>apply to a the Bloomington Fire Department Relief Association enumerated in subdivision <br/>
<a id="pl.91.13"></a><var>91.13</var>1a if the requirements of subdivisions 3 to 10 are met.<br/>
<br/>
<a id="bill.5.33.0"></a><a id="pl.91.14"></a><var>91.14</var>    Sec. 33. Minnesota Statutes 2012, section 69.77, subdivision 4, is amended to read:<br/>
<a id="pl.91.15"></a><var>91.15</var>    Subd. 4. <b>Relief association financial requirements; minimum municipal </b><br/>
<a id="pl.91.16"></a><var>91.16</var><b>obligation.</b> (a) The officers of the Bloomington Fire Department Relief Association <br/>
<a id="pl.91.17"></a><var>91.17</var>shall determine the financial requirements of the relief association and the minimum <br/>
<a id="pl.91.18"></a><var>91.18</var>obligation of the municipality city of Bloomington for the following calendar year in <br/>
<a id="pl.91.19"></a><var>91.19</var>accordance with the requirements of this subdivision. The financial requirements of the <br/>
<a id="pl.91.20"></a><var>91.20</var>relief association and the minimum obligation of the municipality city of Bloomington <br/>
<a id="pl.91.21"></a><var>91.21</var>must be determined on or before the submission date established by the municipality<br/>
<a id="pl.91.22"></a><var>91.22</var> city of Bloomington under subdivision 5.<br/>
<a id="pl.91.23"></a><var>91.23</var>(b) The financial requirements of the relief association for the following calendar <br/>
<a id="pl.91.24"></a><var>91.24</var>year must be based on the most recent actuarial valuation or survey of the special fund of <br/>
<a id="pl.91.25"></a><var>91.25</var>the association if more than one fund is maintained by the association, or of the association, <br/>
<a id="pl.91.26"></a><var>91.26</var>if only one fund is maintained, prepared in accordance with sections 
         <statute_ref>356.215</statute_ref>, subdivisions <br/>
<a id="pl.91.27"></a><var>91.27</var>4 to 15, and 
         <statute_ref>356.216</statute_ref>, as required under subdivision 10. If an actuarial estimate is prepared <br/>
<a id="pl.91.28"></a><var>91.28</var>by the actuary of the relief association as part of obtaining a modification of the benefit <br/>
<a id="pl.91.29"></a><var>91.29</var>plan of the relief association and the modification is implemented, the actuarial estimate <br/>
<a id="pl.91.30"></a><var>91.30</var>must be used in calculating the subsequent financial requirements of the relief association.<br/>
<a id="pl.91.31"></a><var>91.31</var>(c) If the relief association has an unfunded actuarial accrued liability as reported in <br/>
<a id="pl.91.32"></a><var>91.32</var>the most recent actuarial valuation or survey, the total of the amounts calculated under <br/>
<a id="pl.91.33"></a><var>91.33</var>clauses (1), (2), and (3), constitute the financial requirements of the relief association for <br/>
<a id="pl.91.34"></a><var>91.34</var>the following year. If the relief association does not have an unfunded actuarial accrued <br/>
<a id="pl.92.1"></a><var>92.1</var>liability as reported in the most recent actuarial valuation or survey, the amount calculated <br/>
<a id="pl.92.2"></a><var>92.2</var>under clauses (1) and (2) constitute the financial requirements of the relief association for <br/>
<a id="pl.92.3"></a><var>92.3</var>the following year. The financial requirement elements are:<br/>
<a id="pl.92.4"></a><var>92.4</var>(1) the normal level cost requirement for the following year, expressed as a dollar <br/>
<a id="pl.92.5"></a><var>92.5</var>amount, which must be determined by applying the normal level cost of the relief <br/>
<a id="pl.92.6"></a><var>92.6</var>association as reported in the actuarial valuation or survey and expressed as a percentage <br/>
<a id="pl.92.7"></a><var>92.7</var>of covered payroll to the estimated covered payroll of the active membership of the relief <br/>
<a id="pl.92.8"></a><var>92.8</var>association, including any projected change in the active membership, for the following <br/>
<a id="pl.92.9"></a><var>92.9</var>year;<br/>
<a id="pl.92.10"></a><var>92.10</var>(2) for the Bloomington Fire Department Relief Association, to the dollar amount <br/>
<a id="pl.92.11"></a><var>92.11</var>of normal cost determined under clause (1) must be added an amount equal to the dollar <br/>
<a id="pl.92.12"></a><var>92.12</var>amount of the administrative expenses of the special fund of the association if more <br/>
<a id="pl.92.13"></a><var>92.13</var>than one fund is maintained by the association, or of the association if only one fund is <br/>
<a id="pl.92.14"></a><var>92.14</var>maintained, for the most recent year, multiplied by the factor of 1.035. The administrative <br/>
<a id="pl.92.15"></a><var>92.15</var>expenses are those authorized under section 
         <statute_ref>69.80</statute_ref>; and<br/>
<a id="pl.92.16"></a><var>92.16</var>(3) to the dollar amount of normal cost and expenses determined under clauses <br/>
<a id="pl.92.17"></a><var>92.17</var>(1) and (2) must be added an amount equal to the level annual dollar amount which <br/>
<a id="pl.92.18"></a><var>92.18</var>is sufficient to amortize the unfunded actuarial accrued liability as determined from <br/>
<a id="pl.92.19"></a><var>92.19</var>the actuarial valuation or survey of the fund, using an interest assumption set at the <br/>
<a id="pl.92.20"></a><var>92.20</var>applicable rate specified in section 
         <statute_ref>356.215, subdivision 8</statute_ref>, by that fund's amortization <br/>
<a id="pl.92.21"></a><var>92.21</var>date as specified in paragraph (d).<br/>
<a id="pl.92.22"></a><var>92.22</var>(d) The Bloomington Fire Department Relief Association special fund amortization <br/>
<a id="pl.92.23"></a><var>92.23</var>date is determined under section 
         <statute_ref>356.216</statute_ref>, clause (2). The amortization date specified in <br/>
<a id="pl.92.24"></a><var>92.24</var>this paragraph supersedes any amortization date specified in any applicable special law.<br/>
<a id="pl.92.25"></a><var>92.25</var>(d) If the actuarial value of the assets of the special fund of the relief association <br/>
<a id="pl.92.26"></a><var>92.26</var>exceed the actuarial accrued liability as reported in the most recent actuarial valuation of the <br/>
<a id="pl.92.27"></a><var>92.27</var>special fund of the relief association, the financial requirements of the relief association are <br/>
<a id="pl.92.28"></a><var>92.28</var>the amounts calculated under paragraph (c), clauses (1) and (2), reduced by one-tenth of the <br/>
<a id="pl.92.29"></a><var>92.29</var>amount by which the actuarial value of the assets of the special fund of the relief association <br/>
<a id="pl.92.30"></a><var>92.30</var>exceeds the actuarial accrued liability of the special fund of the relief association.<br/>
<a id="pl.92.31"></a><var>92.31</var>(e) The minimum obligation of the municipality is an amount equal to the financial <br/>
<a id="pl.92.32"></a><var>92.32</var>requirements of the relief association reduced by the estimated amount of member <br/>
<a id="pl.92.33"></a><var>92.33</var>contributions from covered salary anticipated for the following calendar year and the <br/>
<a id="pl.92.34"></a><var>92.34</var>estimated amounts amount anticipated for the following calendar year from the applicable<br/>
<a id="pl.92.35"></a><var>92.35</var> fire state aid program established under sections 
         <statute_ref>69.011</statute_ref> to 
         <statute_ref>69.051</statute_ref> receivable by the relief <br/>
<a id="pl.92.36"></a><var>92.36</var>association after any allocation made under section 
         <statute_ref>69.031, subdivision 5</statute_ref>, paragraph (b), <br/>
<a id="pl.93.1"></a><var>93.1</var>clause (2), or 
<statute_ref>423A.01, subdivision 2</statute_ref>, paragraph (a), clause (6), from the local police <br/>
<a id="pl.93.2"></a><var>93.2</var>and salaried firefighters' relief association amortization aid program established under <br/>
<a id="pl.93.3"></a><var>93.3</var>section 
<statute_ref>423A.02, subdivision 1</statute_ref>, from the supplementary amortization state-aid program <br/>
<a id="pl.93.4"></a><var>93.4</var>established under section 
<statute_ref>423A.02, subdivision 1a</statute_ref>, and from the additional amortization <br/>
<a id="pl.93.5"></a><var>93.5</var>state aid under section 
<statute_ref>423A.02, subdivision 1b</statute_ref>.<br/>
<br/>
<a id="bill.5.34.0"></a><a id="pl.93.6"></a><var>93.6</var>    Sec. 34. Minnesota Statutes 2012, section 69.77, subdivision 5, is amended to read:<br/>
<a id="pl.93.7"></a><var>93.7</var>    Subd. 5. <b>Determination submission.</b> The officers of the relief association shall <br/>
<a id="pl.93.8"></a><var>93.8</var>submit the determination of the financial requirements of the relief association and of the <br/>
<a id="pl.93.9"></a><var>93.9</var>minimum obligation of the municipality to the governing body Bloomington City Council <br/>
<a id="pl.93.10"></a><var>93.10</var>on or before the date established by the municipality city of Bloomington, which may <br/>
<a id="pl.93.11"></a><var>93.11</var>not be earlier than August 1 and may not be later than September 1 of each year. The <br/>
<a id="pl.93.12"></a><var>93.12</var>governing body of the municipality Bloomington City Council must ascertain whether or <br/>
<a id="pl.93.13"></a><var>93.13</var>not the determinations were prepared in accordance with law.<br/>
<br/>
<a id="bill.5.35.0"></a><a id="pl.93.14"></a><var>93.14</var>    Sec. 35. Minnesota Statutes 2012, section 69.77, subdivision 6, is amended to read:<br/>
<a id="pl.93.15"></a><var>93.15</var>    Subd. 6. <b>Municipal payment.</b> (a) The municipality city of Bloomington shall <br/>
<a id="pl.93.16"></a><var>93.16</var>provide for and shall pay, each year, at least the amount of the minimum obligation of the <br/>
<a id="pl.93.17"></a><var>93.17</var>municipality city of Bloomington to the Bloomington Fire Department Relief Association.<br/>
<a id="pl.93.18"></a><var>93.18</var>(b) If there is any deficiency in the municipal payment to meet the minimum <br/>
<a id="pl.93.19"></a><var>93.19</var>obligation of the municipality city of Bloomington as of the end of any calendar year, the <br/>
<a id="pl.93.20"></a><var>93.20</var>amount of the deficiency must be added to the minimum obligation of the municipality city <br/>
<a id="pl.93.21"></a><var>93.21</var>of Bloomington for the following year calculated under subdivision 4 and must include <br/>
<a id="pl.93.22"></a><var>93.22</var>interest at the compound rate of six percent per annum from the date that the municipality<br/>
<a id="pl.93.23"></a><var>93.23</var> city of Bloomington was required to make payment under this subdivision until the date <br/>
<a id="pl.93.24"></a><var>93.24</var>that the municipality city of Bloomington actually makes the required payment.<br/>
<br/>
<a id="bill.5.36.0"></a><a id="pl.93.25"></a><var>93.25</var>    Sec. 36. Minnesota Statutes 2012, section 69.77, subdivision 7, is amended to read:<br/>
<a id="pl.93.26"></a><var>93.26</var>    Subd. 7. <b>Budget inclusion.</b> (a) The municipality city of Bloomington shall provide <br/>
<a id="pl.93.27"></a><var>93.27</var>in the annual municipal budget for at least the minimum obligation of the municipality <br/>
<a id="pl.93.28"></a><var>93.28</var>calculated under subdivision 4.<br/>
<a id="pl.93.29"></a><var>93.29</var>(b) The municipality city of Bloomington may levy taxes for the payment of the <br/>
<a id="pl.93.30"></a><var>93.30</var>minimum obligation of the municipality city of Bloomington without any limitation as to <br/>
<a id="pl.93.31"></a><var>93.31</var>rate or amount and irrespective of limitations imposed by other provisions of law upon the <br/>
<a id="pl.93.32"></a><var>93.32</var>rate or amount of taxation when the balance of the special fund or any fund of the relief <br/>
<a id="pl.93.33"></a><var>93.33</var>association has attained a specified minimum asset level. In addition, any taxes levied <br/>
<a id="pl.94.1"></a><var>94.1</var>under this section may not cause the amount or rate of other taxes levied in that year or to <br/>
<a id="pl.94.2"></a><var>94.2</var>be levied in a subsequent year by the municipality city of Bloomington which are subject <br/>
<a id="pl.94.3"></a><var>94.3</var>to a limitation as to rate or amount to be reduced.<br/>
<a id="pl.94.4"></a><var>94.4</var>(c) If the municipality city of Bloomington does not include the full amount of <br/>
<a id="pl.94.5"></a><var>94.5</var>the minimum obligation of the municipality city of Bloomington in the levy that the <br/>
<a id="pl.94.6"></a><var>94.6</var>municipality city of Bloomington certified to the Hennepin County auditor in any year, the <br/>
<a id="pl.94.7"></a><var>94.7</var>officers of the relief association shall certify the amount of any deficiency to the Hennepin <br/>
<a id="pl.94.8"></a><var>94.8</var>County auditor. Upon verifying the existence of any deficiency in the levy certified by <br/>
<a id="pl.94.9"></a><var>94.9</var>the municipality city of Bloomington, the Hennepin County auditor shall spread a levy <br/>
<a id="pl.94.10"></a><var>94.10</var>over the taxable property of the municipality city of Bloomington in the amount of the <br/>
<a id="pl.94.11"></a><var>94.11</var>deficiency certified to by the officers of the relief association.<br/>
<br/>
<a id="bill.5.37.0"></a><a id="pl.94.12"></a><var>94.12</var>    Sec. 37. Minnesota Statutes 2012, section 69.77, subdivision 8, is amended to read:<br/>
<a id="pl.94.13"></a><var>94.13</var>    Subd. 8. <b>Accelerated amortization.</b> Any sums of money paid by the municipality<br/>
<a id="pl.94.14"></a><var>94.14</var> city of Bloomington to the relief association in excess of the minimum obligation of the <br/>
<a id="pl.94.15"></a><var>94.15</var>municipality city of Bloomington in any year must be used to amortize any unfunded <br/>
<a id="pl.94.16"></a><var>94.16</var>actuarial accrued liabilities of the Bloomington Fire Department Relief Association.<br/>
<br/>
<a id="bill.5.38.0"></a><a id="pl.94.17"></a><var>94.17</var>    Sec. 38. Minnesota Statutes 2012, section 69.77, subdivision 9, is amended to read:<br/>
<a id="pl.94.18"></a><var>94.18</var>    Subd. 9. <b>Local paid fire relief association investment authority.</b> (a) The special <br/>
<a id="pl.94.19"></a><var>94.19</var>fund funds of the association must be invested in securities that are authorized investments <br/>
<a id="pl.94.20"></a><var>94.20</var>under section 
         <statute_ref>356A.06, subdivision 6</statute_ref> or 7, whichever applies.<br/>
<a id="pl.94.21"></a><var>94.21</var>(b) The governing board of the Bloomington Fire Department Relief Association <br/>
<a id="pl.94.22"></a><var>94.22</var>may select and appoint a qualified private firm to measure management performance and <br/>
<a id="pl.94.23"></a><var>94.23</var>return on investment, and the firm must use the formula or formulas developed by the <br/>
<a id="pl.94.24"></a><var>94.24</var>State Board of Investment under section 
         <statute_ref>11A.04</statute_ref>, clause (11). The governing board of the <br/>
<a id="pl.94.25"></a><var>94.25</var>Bloomington Fire Department Relief Association may certify general fund assets of the <br/>
<a id="pl.94.26"></a><var>94.26</var>relief association for investment by the State Board of Investment in fixed income pools <br/>
<a id="pl.94.27"></a><var>94.27</var>or in a separately managed account at the discretion of the State Board of Investment <br/>
<a id="pl.94.28"></a><var>94.28</var>as provided in section 
<statute_ref>11A.14</statute_ref>.<br/>
<a id="pl.94.29"></a><var>94.29</var>(c) The governing board of the association may certify general fund assets of the <br/>
<a id="pl.94.30"></a><var>94.30</var>relief association for investment by the State Board of Investment in fixed income pools <br/>
<a id="pl.94.31"></a><var>94.31</var>or in a separately managed account at the discretion of the State Board of Investment <br/>
<a id="pl.94.32"></a><var>94.32</var>as provided in section 
<statute_ref>11A.14</statute_ref>.<br/>
<br/>
<a id="bill.5.39.0"></a><a id="pl.94.33"></a><var>94.33</var>    Sec. 39. Minnesota Statutes 2012, section 69.77, subdivision 10, is amended to read:<br/>
<a id="pl.95.1"></a><var>95.1</var>    Subd. 10. <b>Actuarial valuation required.</b> The governing board of the Bloomington <br/>
<a id="pl.95.2"></a><var>95.2</var>Fire Department Relief Association shall obtain an actuarial valuation showing the <br/>
<a id="pl.95.3"></a><var>95.3</var>condition of the special fund of the relief association under sections 
         <statute_ref>356.215</statute_ref> and 
         <statute_ref>356.216</statute_ref> <br/>
<a id="pl.95.4"></a><var>95.4</var>and any the applicable standards for actuarial work established by the Legislative <br/>
<a id="pl.95.5"></a><var>95.5</var>Commission on Pensions and Retirement. The actuarial valuation must be made as of <br/>
<a id="pl.95.6"></a><var>95.6</var>December 31 of every year. A copy of the actuarial valuation must be filed with the <br/>
<a id="pl.95.7"></a><var>95.7</var>Director of the Legislative Reference Library, the governing body of the municipality in <br/>
<a id="pl.95.8"></a><var>95.8</var>which the association is organized Bloomington City Council, the executive director of <br/>
<a id="pl.95.9"></a><var>95.9</var>the Legislative Commission on Pensions and Retirement, and the state auditor, not later <br/>
<a id="pl.95.10"></a><var>95.10</var>than July 1 of the following year.<br/>
<br/>
<a id="bill.5.40.0"></a><a id="pl.95.11"></a><var>95.11</var>    Sec. 40. Minnesota Statutes 2012, section 69.77, subdivision 11, is amended to read:<br/>
<a id="pl.95.12"></a><var>95.12</var>    Subd. 11. <b>Municipal approval of benefit changes required.</b> Any amendment to <br/>
<a id="pl.95.13"></a><var>95.13</var>the bylaws or articles of incorporation of a the Bloomington Fire Department Relief <br/>
<a id="pl.95.14"></a><var>95.14</var>Association which increases or otherwise affects the retirement coverage provided by or <br/>
<a id="pl.95.15"></a><var>95.15</var>the service pensions or retirement benefits payable from any police or firefighters' the <br/>
<a id="pl.95.16"></a><var>95.16</var>relief association enumerated in subdivision 1a is not effective until it is ratified by the <br/>
<a id="pl.95.17"></a><var>95.17</var>municipality in which the relief association is located city of Bloomington. The officers <br/>
<a id="pl.95.18"></a><var>95.18</var>of the relief association shall not seek municipal ratification before obtaining either an <br/>
<a id="pl.95.19"></a><var>95.19</var>updated actuarial valuation including the proposed amendment or an estimate of the <br/>
<a id="pl.95.20"></a><var>95.20</var>expected actuarial impact of the proposed amendment prepared by the actuary of the relief <br/>
<a id="pl.95.21"></a><var>95.21</var>association and submitting that actuarial valuation or estimate to the Bloomington city <br/>
<a id="pl.95.22"></a><var>95.22</var>clerk of the municipality.<br/>
<br/>
<a id="bill.5.41.0"></a><a id="pl.95.23"></a><var>95.23</var>    Sec. 41. Minnesota Statutes 2012, section 69.77, subdivision 12, is amended to read:<br/>
<a id="pl.95.24"></a><var>95.24</var>    Subd. 12. <b>Application of other laws to contribution rate.</b> In the absence of any <br/>
<a id="pl.95.25"></a><var>95.25</var>specific provision to the contrary, no general or special law previously enacted may be <br/>
<a id="pl.95.26"></a><var>95.26</var>construed as reducing the levy amount or rate of contribution to a police or firefighters the <br/>
<a id="pl.95.27"></a><var>95.27</var>Bloomington Fire Department Relief Association to which subdivision 1a applies, by a <br/>
<a id="pl.95.28"></a><var>95.28</var>municipality or member of the association the city of Bloomington, which is required as a <br/>
<a id="pl.95.29"></a><var>95.29</var>condition for the use of public funds or the levy of taxes for the support of the association. <br/>
<a id="pl.95.30"></a><var>95.30</var>Each The Bloomington Fire Department Relief Association, the municipality in which <br/>
<a id="pl.95.31"></a><var>95.31</var>it is organized city of Bloomington, and the officers of each, are authorized to do all <br/>
<a id="pl.95.32"></a><var>95.32</var>things required by this section as a condition for the use of public funds or the levy of <br/>
<a id="pl.95.33"></a><var>95.33</var>taxes for the support of the association.<br/>
<br/>
<a id="bill.5.42.0"></a><a id="pl.96.1"></a><var>96.1</var>    Sec. 42. Minnesota Statutes 2012, section 69.77, subdivision 13, is amended to read:<br/>
<a id="pl.96.2"></a><var>96.2</var>    Subd. 13. <b>Citation.</b> This section may be cited as the "Police and Firefighters'<br/>
<a id="pl.96.3"></a><var>96.3</var> Bloomington Fire Department Relief Associations Association Guidelines Act of 1969."<br/>
<br/>
<a id="bill.5.43.0"></a><a id="pl.96.4"></a><var>96.4</var>    Sec. 43. Minnesota Statutes 2012, section 69.771, subdivision 1, is amended to read:<br/>
<a id="pl.96.5"></a><var>96.5</var>    Subdivision 1. <b>Covered relief associations.</b> The applicable provisions of sections <br/>
<statute_ref><a id="pl.96.6"></a><var>96.6</var>69.771
         </statute_ref> to 
         <statute_ref>69.776</statute_ref> apply to any firefighters' relief association other than a the Bloomington <br/>
<a id="pl.96.7"></a><var>96.7</var>Fire Department Relief Association enumerated in section 
<statute_ref>69.77, subdivision 1a</statute_ref>, which <br/>
<a id="pl.96.8"></a><var>96.8</var>is organized under any laws of this state, which is composed of volunteer firefighters or <br/>
<a id="pl.96.9"></a><var>96.9</var>is composed partially of volunteer firefighters and partially of salaried firefighters with <br/>
<a id="pl.96.10"></a><var>96.10</var>retirement coverage provided by the public employees police and fire fund and which, in <br/>
<a id="pl.96.11"></a><var>96.11</var>either case, operates subject to the service pension minimum requirements for entitlement <br/>
<a id="pl.96.12"></a><var>96.12</var>and maximums contained in section 
         <statute_ref>424A.02</statute_ref>, or subject to a special law modifying those <br/>
<a id="pl.96.13"></a><var>96.13</var>requirements or maximums.<br/>
<br/>
<a id="bill.5.44.0"></a><a id="pl.96.14"></a><var>96.14</var>    Sec. 44. Minnesota Statutes 2012, section 69.80, is amended to read:<br/>
<a id="pl.96.15"></a><var>96.15</var><b>69.80 AUTHORIZED ADMINISTRATIVE EXPENSES.</b><br/>
<a id="pl.96.16"></a><var>96.16</var>(a) Notwithstanding any provision of law to the contrary, the payment of the <br/>
<a id="pl.96.17"></a><var>96.17</var>following necessary, reasonable and direct expenses of maintaining, protecting and <br/>
<a id="pl.96.18"></a><var>96.18</var>administering the special fund, when provided for in the bylaws of the association and <br/>
<a id="pl.96.19"></a><var>96.19</var>approved by the board of trustees, constitutes authorized administrative expenses of a <br/>
<a id="pl.96.20"></a><var>96.20</var>police, salaried firefighters', or volunteer firefighters' relief association organized under <br/>
<a id="pl.96.21"></a><var>96.21</var>any law of this state or the Bloomington Fire Department Relief Association:<br/>
<a id="pl.96.22"></a><var>96.22</var>(1) office expense, including, but not limited to, rent, utilities, equipment, supplies, <br/>
<a id="pl.96.23"></a><var>96.23</var>postage, periodical subscriptions, furniture, fixtures, and salaries of administrative <br/>
<a id="pl.96.24"></a><var>96.24</var>personnel;<br/>
<a id="pl.96.25"></a><var>96.25</var>(2) salaries of the officers of the association, or their designees, and salaries of the <br/>
<a id="pl.96.26"></a><var>96.26</var>members of the board of trustees of the association if the salary amounts are approved by <br/>
<a id="pl.96.27"></a><var>96.27</var>the governing body of the entity that is responsible for meeting any minimum obligation <br/>
<a id="pl.96.28"></a><var>96.28</var>under section 
         <statute_ref>69.77</statute_ref>,
<statute_ref>69.772</statute_ref>, or 
         <statute_ref>69.773</statute_ref>, or sections 31 to 42, and the itemized expenses <br/>
<a id="pl.96.29"></a><var>96.29</var>of relief association officers and board members that are incurred as a result of fulfilling <br/>
<a id="pl.96.30"></a><var>96.30</var>their responsibilities as administrators of the special fund;<br/>
<a id="pl.96.31"></a><var>96.31</var>(3) tuition, registration fees, organizational dues, and other authorized expenses <br/>
<a id="pl.96.32"></a><var>96.32</var>of the officers or members of the board of trustees incurred in attending educational <br/>
<a id="pl.96.33"></a><var>96.33</var>conferences, seminars, or classes relating to the administration of the relief association;<br/>
<a id="pl.97.1"></a><var>97.1</var>(4) audit, actuarial, medical, legal, and investment and performance evaluation <br/>
<a id="pl.97.2"></a><var>97.2</var>expenses;<br/>
<a id="pl.97.3"></a><var>97.3</var>(5) filing and application fees payable by the relief association to federal or other <br/>
<a id="pl.97.4"></a><var>97.4</var>governmental entities;<br/>
<a id="pl.97.5"></a><var>97.5</var>(6) reimbursement to the officers and members of the board of trustees, or their <br/>
<a id="pl.97.6"></a><var>97.6</var>designees, for reasonable and necessary expenses actually paid and incurred in the <br/>
<a id="pl.97.7"></a><var>97.7</var>performance of their duties as officers or members of the board; and<br/>
<a id="pl.97.8"></a><var>97.8</var>(7) premiums on fiduciary liability insurance and official bonds for the officers, <br/>
<a id="pl.97.9"></a><var>97.9</var>members of the board of trustees, and employees of the relief association.<br/>
<a id="pl.97.10"></a><var>97.10</var>(b) Any other expenses of the relief association must be paid from the general fund <br/>
<a id="pl.97.11"></a><var>97.11</var>of the association, if one exists. If a relief association has only one fund, that fund is the <br/>
<a id="pl.97.12"></a><var>97.12</var>special fund for purposes of this section. If a relief association has a special fund and <br/>
<a id="pl.97.13"></a><var>97.13</var>a general fund, and any expense of the relief association that is directly related to the <br/>
<a id="pl.97.14"></a><var>97.14</var>purposes for which both funds were established, the payment of that expense must be <br/>
<a id="pl.97.15"></a><var>97.15</var>apportioned between the two funds on the basis of the benefits derived by each fund.<br/>
<br/>
<a id="bill.5.45.0"></a><a id="pl.97.16"></a><var>97.16</var>    Sec. 45. Minnesota Statutes 2012, section 275.70, subdivision 5, is amended to read:<br/>
<a id="pl.97.17"></a><var>97.17</var>    Subd. 5. <b>Special levies.</b> "Special levies" means those portions of ad valorem taxes <br/>
<a id="pl.97.18"></a><var>97.18</var>levied by a local governmental unit for the following purposes or in the following manner:<br/>
<a id="pl.97.19"></a><var>97.19</var>    (1) to pay the costs of the principal and interest on bonded indebtedness or to <br/>
<a id="pl.97.20"></a><var>97.20</var>reimburse for the amount of liquor store revenues used to pay the principal and interest <br/>
<a id="pl.97.21"></a><var>97.21</var>due on municipal liquor store bonds in the year preceding the year for which the levy <br/>
<a id="pl.97.22"></a><var>97.22</var>limit is calculated;<br/>
<a id="pl.97.23"></a><var>97.23</var>    (2) to pay the costs of principal and interest on certificates of indebtedness issued for <br/>
<a id="pl.97.24"></a><var>97.24</var>any corporate purpose except for the following:<br/>
<a id="pl.97.25"></a><var>97.25</var>    (i) tax anticipation or aid anticipation certificates of indebtedness;<br/>
<a id="pl.97.26"></a><var>97.26</var>    (ii) certificates of indebtedness issued under sections 
         <statute_ref>298.28</statute_ref> and 
         <statute_ref>298.282</statute_ref>;<br/>
<a id="pl.97.27"></a><var>97.27</var>    (iii) certificates of indebtedness used to fund current expenses or to pay the costs of <br/>
<a id="pl.97.28"></a><var>97.28</var>extraordinary expenditures that result from a public emergency; or<br/>
<a id="pl.97.29"></a><var>97.29</var>    (iv) certificates of indebtedness used to fund an insufficiency in tax receipts or an <br/>
<a id="pl.97.30"></a><var>97.30</var>insufficiency in other revenue sources, provided that nothing in this subdivision limits the <br/>
<a id="pl.97.31"></a><var>97.31</var>special levy authorized under section 
         <statute_ref>475.755</statute_ref>;<br/>
<a id="pl.97.32"></a><var>97.32</var>    (3) to provide for the bonded indebtedness portion of payments made to another <br/>
<a id="pl.97.33"></a><var>97.33</var>political subdivision of the state of Minnesota;<br/>
<a id="pl.98.1"></a><var>98.1</var>    (4) to fund payments made to the Minnesota State Armory Building Commission <br/>
<a id="pl.98.2"></a><var>98.2</var>under section 
         <statute_ref>193.145, subdivision 2</statute_ref>, to retire the principal and interest on armory <br/>
<a id="pl.98.3"></a><var>98.3</var>construction bonds;<br/>
<a id="pl.98.4"></a><var>98.4</var>    (5) property taxes approved by voters which are levied against the referendum <br/>
<a id="pl.98.5"></a><var>98.5</var>market value as provided under section 
         <statute_ref>275.61</statute_ref>;<br/>
<a id="pl.98.6"></a><var>98.6</var>    (6) to fund matching requirements needed to qualify for federal or state grants or <br/>
<a id="pl.98.7"></a><var>98.7</var>programs to the extent that either (i) the matching requirement exceeds the matching <br/>
<a id="pl.98.8"></a><var>98.8</var>requirement in calendar year 2001, or (ii) it is a new matching requirement that did not <br/>
<a id="pl.98.9"></a><var>98.9</var>exist prior to 2002;<br/>
<a id="pl.98.10"></a><var>98.10</var>    (7) to pay the expenses reasonably and necessarily incurred in preparing for or <br/>
<a id="pl.98.11"></a><var>98.11</var>repairing the effects of natural disaster including the occurrence or threat of widespread <br/>
<a id="pl.98.12"></a><var>98.12</var>or severe damage, injury, or loss of life or property resulting from natural causes, in <br/>
<a id="pl.98.13"></a><var>98.13</var>accordance with standards formulated by the Emergency Services Division of the state <br/>
<a id="pl.98.14"></a><var>98.14</var>Department of Public Safety, as allowed by the commissioner of revenue under section <br/>
<statute_ref><a id="pl.98.15"></a><var>98.15</var>275.74, subdivision 2
         </statute_ref>;<br/>
<a id="pl.98.16"></a><var>98.16</var>    (8) pay amounts required to correct an error in the levy certified to the county <br/>
<a id="pl.98.17"></a><var>98.17</var>auditor by a city or county in a levy year, but only to the extent that when added to the <br/>
<a id="pl.98.18"></a><var>98.18</var>preceding year's levy it is not in excess of an applicable statutory, special law or charter <br/>
<a id="pl.98.19"></a><var>98.19</var>limitation, or the limitation imposed on the governmental subdivision by sections 
         <statute_ref>275.70 <br/>
</statute_ref><a id="pl.98.20"></a><var>98.20</var>to 
         <statute_ref>275.74</statute_ref> in the preceding levy year;<br/>
<a id="pl.98.21"></a><var>98.21</var>    (9) to pay an abatement under section 
         <statute_ref>469.1815</statute_ref>;<br/>
<a id="pl.98.22"></a><var>98.22</var>    (10) to pay any costs attributable to increases in the employer contribution rates under <br/>
<a id="pl.98.23"></a><var>98.23</var>chapter 353, or locally administered pension plans, that are effective after June 30, 2001;<br/>
<a id="pl.98.24"></a><var>98.24</var>    (11) to pay the operating or maintenance costs of a county jail as authorized in section <br/>
<statute_ref><a id="pl.98.25"></a><var>98.25</var>641.01
         </statute_ref> or 
         <statute_ref>641.262</statute_ref>, or of a correctional facility as defined in section 
         <statute_ref>241.021, subdivision 1</statute_ref>, <br/>
<a id="pl.98.26"></a><var>98.26</var>paragraph (f), to the extent that the county can demonstrate to the commissioner of revenue <br/>
<a id="pl.98.27"></a><var>98.27</var>that the amount has been included in the county budget as a direct result of a rule, minimum <br/>
<a id="pl.98.28"></a><var>98.28</var>requirement, minimum standard, or directive of the Department of Corrections, or to pay <br/>
<a id="pl.98.29"></a><var>98.29</var>the operating or maintenance costs of a regional jail as authorized in section 
         <statute_ref>641.262</statute_ref>. For <br/>
<a id="pl.98.30"></a><var>98.30</var>purposes of this clause, a district court order is not a rule, minimum requirement, minimum <br/>
<a id="pl.98.31"></a><var>98.31</var>standard, or directive of the Department of Corrections. If the county utilizes this special <br/>
<a id="pl.98.32"></a><var>98.32</var>levy, except to pay operating or maintenance costs of a new regional jail facility under <br/>
<a id="pl.98.33"></a><var>98.33</var>sections 
         <statute_ref>641.262</statute_ref> to 
         <statute_ref>641.264</statute_ref> which will not replace an existing jail facility, any amount <br/>
<a id="pl.98.34"></a><var>98.34</var>levied by the county in the previous levy year for the purposes specified under this clause <br/>
<a id="pl.98.35"></a><var>98.35</var>and included in the county's previous year's levy limitation computed under section <br/>
<statute_ref><a id="pl.98.36"></a><var>98.36</var>275.71
         </statute_ref>, shall be deducted from the levy limit base under section 
         <statute_ref>275.71, subdivision 2</statute_ref>, <br/>
<a id="pl.99.1"></a><var>99.1</var>when determining the county's current year levy limitation. The county shall provide the <br/>
<a id="pl.99.2"></a><var>99.2</var>necessary information to the commissioner of revenue for making this determination;<br/>
<a id="pl.99.3"></a><var>99.3</var>    (12) to pay for operation of a lake improvement district, as authorized under section <br/>
<statute_ref><a id="pl.99.4"></a><var>99.4</var>103B.555
         </statute_ref>. If the county utilizes this special levy, any amount levied by the county in the <br/>
<a id="pl.99.5"></a><var>99.5</var>previous levy year for the purposes specified under this clause and included in the county's <br/>
<a id="pl.99.6"></a><var>99.6</var>previous year's levy limitation computed under section 
         <statute_ref>275.71</statute_ref> shall be deducted from <br/>
<a id="pl.99.7"></a><var>99.7</var>the levy limit base under section 
         <statute_ref>275.71, subdivision 2</statute_ref>, when determining the county's <br/>
<a id="pl.99.8"></a><var>99.8</var>current year levy limitation. The county shall provide the necessary information to the <br/>
<a id="pl.99.9"></a><var>99.9</var>commissioner of revenue for making this determination;<br/>
<a id="pl.99.10"></a><var>99.10</var>    (13) to repay a state or federal loan used to fund the direct or indirect required <br/>
<a id="pl.99.11"></a><var>99.11</var>spending by the local government due to a state or federal transportation project or other <br/>
<a id="pl.99.12"></a><var>99.12</var>state or federal capital project. This authority may only be used if the project is not a <br/>
<a id="pl.99.13"></a><var>99.13</var>local government initiative;<br/>
<a id="pl.99.14"></a><var>99.14</var>    (14) to pay for court administration costs as required under section 
         <statute_ref>273.1398, <br/>
<a id="pl.99.15"></a><var>99.15</var>subdivision 4b
         </statute_ref>, less the (i) county's share of transferred fines and fees collected by the <br/>
<a id="pl.99.16"></a><var>99.16</var>district courts in the county for calendar year 2001 and (ii) the aid amount certified to be <br/>
<a id="pl.99.17"></a><var>99.17</var>paid to the county in 2004 under section 
         <statute_ref>273.1398, subdivision 4c</statute_ref>; however, for taxes <br/>
<a id="pl.99.18"></a><var>99.18</var>levied to pay for these costs in the year in which the court financing is transferred to the <br/>
<a id="pl.99.19"></a><var>99.19</var>state, the amount under this clause is limited to the amount of aid the county is certified to <br/>
<a id="pl.99.20"></a><var>99.20</var>receive under section 
         <statute_ref>273.1398, subdivision 4a</statute_ref>;<br/>
<a id="pl.99.21"></a><var>99.21</var>    (15) to fund a police or firefighters relief association as required under section <br/>
<a id="pl.99.22"></a><var>99.22</var>69.77 sections 31 to 42 to the extent that the required amount exceeds the amount levied <br/>
<a id="pl.99.23"></a><var>99.23</var>for this purpose in 2001;<br/>
<a id="pl.99.24"></a><var>99.24</var>    (16) for purposes of a storm sewer improvement district under section 
         <statute_ref>444.20</statute_ref>;<br/>
<a id="pl.99.25"></a><var>99.25</var>    (17) to pay for the maintenance and support of a city or county society for the <br/>
<a id="pl.99.26"></a><var>99.26</var>prevention of cruelty to animals under section 
         <statute_ref>343.11</statute_ref>, but not to exceed in any year <br/>
<a id="pl.99.27"></a><var>99.27</var>$4,800 or the sum of $1 per capita based on the county's or city's population as of the most <br/>
<a id="pl.99.28"></a><var>99.28</var>recent federal census, whichever is greater. If the city or county uses this special levy, any <br/>
<a id="pl.99.29"></a><var>99.29</var>amount levied by the city or county in the previous levy year for the purposes specified <br/>
<a id="pl.99.30"></a><var>99.30</var>in this clause and included in the city's or county's previous year's levy limit computed <br/>
<a id="pl.99.31"></a><var>99.31</var>under section 
         <statute_ref>275.71</statute_ref>, must be deducted from the levy limit base under section 
         <statute_ref>275.71, <br/>
<a id="pl.99.32"></a><var>99.32</var>subdivision 2
         </statute_ref>, in determining the city's or county's current year levy limit;<br/>
<a id="pl.99.33"></a><var>99.33</var>    (18) for counties, to pay for the increase in their share of health and human service <br/>
<a id="pl.99.34"></a><var>99.34</var>costs caused by reductions in federal health and human services grants effective after <br/>
<a id="pl.99.35"></a><var>99.35</var>September 30, 2007;<br/>
<a id="pl.100.1"></a><var>100.1</var>    (19) for a city, for the costs reasonably and necessarily incurred for securing, <br/>
<a id="pl.100.2"></a><var>100.2</var>maintaining, or demolishing foreclosed or abandoned residential properties, as allowed by <br/>
<a id="pl.100.3"></a><var>100.3</var>the commissioner of revenue under section 
         <statute_ref>275.74, subdivision 2</statute_ref>. A city must have either <br/>
<a id="pl.100.4"></a><var>100.4</var>(i) a foreclosure rate of at least 1.4 percent in 2007, or (ii) a foreclosure rate in 2007 in <br/>
<a id="pl.100.5"></a><var>100.5</var>the city or in a zip code area of the city that is at least 50 percent higher than the average <br/>
<a id="pl.100.6"></a><var>100.6</var>foreclosure rate in the metropolitan area, as defined in section 
         <statute_ref>473.121</statute_ref>, subdivision 2, <br/>
<a id="pl.100.7"></a><var>100.7</var>to use this special levy. For purposes of this paragraph, "foreclosure rate" means the <br/>
<a id="pl.100.8"></a><var>100.8</var>number of foreclosures, as indicated by sheriff sales records, divided by the number of <br/>
<a id="pl.100.9"></a><var>100.9</var>households in the city in 2007;<br/>
<a id="pl.100.10"></a><var>100.10</var>    (20) for a city, for the unreimbursed costs of redeployed traffic-control agents and <br/>
<a id="pl.100.11"></a><var>100.11</var>lost traffic citation revenue due to the collapse of the Interstate 35W bridge, as certified <br/>
<a id="pl.100.12"></a><var>100.12</var>to the Federal Highway Administration;<br/>
<a id="pl.100.13"></a><var>100.13</var>    (21) to pay costs attributable to wages and benefits for sheriff, police, and fire <br/>
<a id="pl.100.14"></a><var>100.14</var>personnel. If a local governmental unit did not use this special levy in the previous year its <br/>
<a id="pl.100.15"></a><var>100.15</var>levy limit base under section 
         <statute_ref>275.71</statute_ref> shall be reduced by the amount equal to the amount it <br/>
<a id="pl.100.16"></a><var>100.16</var>levied for the purposes specified in this clause in the previous year;<br/>
<a id="pl.100.17"></a><var>100.17</var>    (22) an amount equal to any reductions in the certified aids or credit reimbursements <br/>
<a id="pl.100.18"></a><var>100.18</var>payable under sections 
         <statute_ref>477A.011</statute_ref> to 
         <statute_ref>477A.014</statute_ref>, and section 
         <statute_ref>273.1384</statute_ref>, due to unallotment <br/>
<a id="pl.100.19"></a><var>100.19</var>under section 
         <statute_ref>16A.152</statute_ref> or reductions under another provision of law. The amount of the <br/>
<a id="pl.100.20"></a><var>100.20</var>levy allowed under this clause for each year is limited to the amount unallotted or reduced <br/>
<a id="pl.100.21"></a><var>100.21</var>from the aids and credit reimbursements certified for payment in the year following the <br/>
<a id="pl.100.22"></a><var>100.22</var>calendar year in which the tax levy is certified unless the unallotment or reduction amount <br/>
<a id="pl.100.23"></a><var>100.23</var>is not known by September 1 of the levy certification year, and the local government has <br/>
<a id="pl.100.24"></a><var>100.24</var>not adjusted its levy under section 
         <statute_ref>275.065, subdivision 6</statute_ref>, or 
         <statute_ref>275.07, subdivision 6</statute_ref>, in <br/>
<a id="pl.100.25"></a><var>100.25</var>which case that unallotment or reduction amount may be levied in the following year;<br/>
<a id="pl.100.26"></a><var>100.26</var>(23) to pay for the difference between one-half of the costs of confining sex offenders <br/>
<a id="pl.100.27"></a><var>100.27</var>undergoing the civil commitment process and any state payments for this purpose pursuant <br/>
<a id="pl.100.28"></a><var>100.28</var>to section 
         <statute_ref>253B.185, subdivision 5</statute_ref>;<br/>
<a id="pl.100.29"></a><var>100.29</var>(24) for a county to pay the costs of the first year of maintaining and operating a new <br/>
<a id="pl.100.30"></a><var>100.30</var>facility or new expansion, either of which contains courts, corrections, dispatch, criminal <br/>
<a id="pl.100.31"></a><var>100.31</var>investigation labs, or other public safety facilities and for which all or a portion of the <br/>
<a id="pl.100.32"></a><var>100.32</var>funding for the site acquisition, building design, site preparation, construction, and related <br/>
<a id="pl.100.33"></a><var>100.33</var>equipment was issued or authorized prior to the imposition of levy limits in 2008. The <br/>
<a id="pl.100.34"></a><var>100.34</var>levy limit base shall then be increased by an amount equal to the new facility's first full <br/>
<a id="pl.100.35"></a><var>100.35</var>year's operating costs as described in this clause; and<br/>
<a id="pl.101.1"></a><var>101.1</var>(25) for the estimated amount of reduction to market value credit reimbursements <br/>
<a id="pl.101.2"></a><var>101.2</var>under section 
         <statute_ref>273.1384</statute_ref> for credits payable in the year in which the levy is payable.<br/>
<br/>
<a id="bill.5.46.0"></a><a id="pl.101.3"></a><var>101.3</var>    Sec. 46. Minnesota Statutes 2012, section 297I.10, subdivision 1, is amended to read:<br/>
<a id="pl.101.4"></a><var>101.4</var>    Subdivision 1. <b>Cities of the first class.</b> (a) The commissioner shall order and direct <br/>
<a id="pl.101.5"></a><var>101.5</var>a surcharge to be collected of two percent of the fire, lightning, and sprinkler leakage gross <br/>
<a id="pl.101.6"></a><var>101.6</var>premiums, less return premiums, on all direct business received by any licensed foreign or <br/>
<a id="pl.101.7"></a><var>101.7</var>domestic fire insurance company on property in a city of the first class, or by its agents for <br/>
<a id="pl.101.8"></a><var>101.8</var>it, in cash or otherwise.<br/>
<a id="pl.101.9"></a><var>101.9</var>(b) By July 31 and December 31 of each year, the commissioner of management <br/>
<a id="pl.101.10"></a><var>101.10</var>and budget shall pay to the relief association in each city of the first class a warrant for <br/>
<a id="pl.101.11"></a><var>101.11</var>an amount equal to the total amount of the surcharge on the premiums collected within <br/>
<a id="pl.101.12"></a><var>101.12</var>the that city since the previous payment.<br/>
<a id="pl.101.13"></a><var>101.13</var>(c) The treasurer of the relief association city shall place the money received under <br/>
<a id="pl.101.14"></a><var>101.14</var>this subdivision in the a special account or fund of the relief association to defray all or a <br/>
<a id="pl.101.15"></a><var>101.15</var>a portion of the employer contribution requirement of public employees police and fire <br/>
<a id="pl.101.16"></a><var>101.16</var>plan coverage for city firefighters.<br/>
<br/>
<a id="bill.5.47.0"></a><a id="pl.101.17"></a><var>101.17</var>    Sec. 47. Minnesota Statutes 2012, section 345.381, is amended to read:<br/>
<a id="pl.101.18"></a><var>101.18</var><b>345.381 PROPERTY HELD BY MINNESOTA PUBLIC PENSION FUND.</b><br/>
<a id="pl.101.19"></a><var>101.19</var>No amounts of money held or owing by a public pension fund enumerated in section <br/>
<statute_ref><a id="pl.101.20"></a><var>101.20</var>356.20, subdivision 2
         </statute_ref>, or 
         <statute_ref>356.30, subdivision 3</statute_ref>, or governed by sections 69.77 or
<statute_ref>69.771</statute_ref> to <br/>
<statute_ref><a id="pl.101.21"></a><var>101.21</var>69.776
         </statute_ref> shall or sections 31 to 42 may be presumed to have been abandoned for purposes of <br/>
<a id="pl.101.22"></a><var>101.22</var>sections 
         <statute_ref>345.41</statute_ref>, 
         <statute_ref>345.42</statute_ref>, 
         <statute_ref>345.43</statute_ref>, 
         <statute_ref>345.47</statute_ref> and 
         <statute_ref>345.48</statute_ref> if the plan governing the public pension <br/>
<a id="pl.101.23"></a><var>101.23</var>fund includes a provision governing the disposition of unclaimed amounts of money.<br/>
<br/>
<a id="bill.5.48.0"></a><a id="pl.101.24"></a><var>101.24</var>    Sec. 48. Minnesota Statutes 2012, section 353.01, subdivision 2a, is amended to read:<br/>
<a id="pl.101.25"></a><var>101.25</var>    Subd. 2a. <b>Included employees; mandatory membership.</b> (a) Public employees <br/>
<a id="pl.101.26"></a><var>101.26</var>whose salary exceeds $425 in any month and who are not specifically excluded under <br/>
<a id="pl.101.27"></a><var>101.27</var>subdivision 2b or who have not been provided an option to participate under subdivision <br/>
<a id="pl.101.28"></a><var>101.28</var>2d, whether individually or by action of the governmental subdivision, must participate as <br/>
<a id="pl.101.29"></a><var>101.29</var>members of the association with retirement coverage by the general employees retirement <br/>
<a id="pl.101.30"></a><var>101.30</var>plan under this chapter, the public employees police and fire retirement plan under this <br/>
<a id="pl.101.31"></a><var>101.31</var>chapter, or the local government correctional employees retirement plan under chapter <br/>
<a id="pl.101.32"></a><var>101.32</var>353E, whichever applies. Membership commences as a condition of their employment on <br/>
<a id="pl.102.1"></a><var>102.1</var>the first day of their employment or on the first day that the eligibility criteria are met, <br/>
<a id="pl.102.2"></a><var>102.2</var>whichever is later. Public employees include but are not limited to:<br/>
<a id="pl.102.3"></a><var>102.3</var>(1) persons whose salary meets the threshold in this paragraph from employment in <br/>
<a id="pl.102.4"></a><var>102.4</var>one or more positions within one governmental subdivision;<br/>
<a id="pl.102.5"></a><var>102.5</var>(2) elected county sheriffs;<br/>
<a id="pl.102.6"></a><var>102.6</var>(3) persons who are appointed, employed, or contracted to perform governmental <br/>
<a id="pl.102.7"></a><var>102.7</var>functions that by law or local ordinance are required of a public officer, including, but <br/>
<a id="pl.102.8"></a><var>102.8</var>not limited to:<br/>
<a id="pl.102.9"></a><var>102.9</var>(i) town and city clerk or treasurer;<br/>
<a id="pl.102.10"></a><var>102.10</var>(ii) county auditor, treasurer, or recorder;<br/>
<a id="pl.102.11"></a><var>102.11</var>(iii) city manager as defined in section 
         <statute_ref>353.028</statute_ref> who does not exercise the option <br/>
<a id="pl.102.12"></a><var>102.12</var>provided under subdivision 2d; or<br/>
<a id="pl.102.13"></a><var>102.13</var>(iv) emergency management director, as provided under section 
         <statute_ref>12.25</statute_ref>;<br/>
<a id="pl.102.14"></a><var>102.14</var>(4) physicians under section 
         <statute_ref>353D.01, subdivision 2</statute_ref>, who do not elect public <br/>
<a id="pl.102.15"></a><var>102.15</var>employees defined contribution plan coverage under section 
         <statute_ref>353D.02, subdivision 2</statute_ref>;<br/>
<a id="pl.102.16"></a><var>102.16</var>(5) full-time employees of the Dakota County Agricultural Society;<br/>
<a id="pl.102.17"></a><var>102.17</var>(6) employees of the Minneapolis Firefighters Relief Association or Minneapolis <br/>
<a id="pl.102.18"></a><var>102.18</var>Police Relief Association who are not excluded employees under subdivision 2b due <br/>
<a id="pl.102.19"></a><var>102.19</var>to coverage by the relief association pension plan and who elected general employee <br/>
<a id="pl.102.20"></a><var>102.20</var>retirement plan coverage before August 20, 2009;<br/>
<a id="pl.102.21"></a><var>102.21</var>(7) (6) employees of the Red Wing Port Authority who were first employed by the <br/>
<a id="pl.102.22"></a><var>102.22</var>Red Wing Port Authority before May 1, 2011, and who are not excluded employees <br/>
<a id="pl.102.23"></a><var>102.23</var>under subdivision 2b; and<br/>
<a id="pl.102.24"></a><var>102.24</var>(8) (7) employees of the Seaway Port Authority of Duluth who are not excluded <br/>
<a id="pl.102.25"></a><var>102.25</var>employees under subdivision 2b.<br/>
<a id="pl.102.26"></a><var>102.26</var>    (b) A public employee or elected official who was a member of the association on <br/>
<a id="pl.102.27"></a><var>102.27</var>June 30, 2002, based on employment that qualified for membership coverage by the public <br/>
<a id="pl.102.28"></a><var>102.28</var>employees retirement plan or the public employees police and fire plan under this chapter, <br/>
<a id="pl.102.29"></a><var>102.29</var>or the local government correctional employees retirement plan under chapter 353E as of <br/>
<a id="pl.102.30"></a><var>102.30</var>June 30, 2002, retains that membership for the duration of the person's employment in that <br/>
<a id="pl.102.31"></a><var>102.31</var>position or incumbency in elected office. Except as provided in subdivision 28, the person <br/>
<a id="pl.102.32"></a><var>102.32</var>shall participate as a member until the employee or elected official terminates public <br/>
<a id="pl.102.33"></a><var>102.33</var>employment under subdivision 11a or terminates membership under subdivision 11b.<br/>
<a id="pl.102.34"></a><var>102.34</var>(c) If the salary of an included public employee is less than $425 in any subsequent <br/>
<a id="pl.102.35"></a><var>102.35</var>month, the member retains membership eligibility.<br/>
<a id="pl.103.1"></a><var>103.1</var>(d) For the purpose of participation in the MERF division of the general employees <br/>
<a id="pl.103.2"></a><var>103.2</var>retirement plan, public employees include employees who were members of the former <br/>
<a id="pl.103.3"></a><var>103.3</var>Minneapolis Employees Retirement Fund on June 29, 2010, and who participate as <br/>
<a id="pl.103.4"></a><var>103.4</var>members of the MERF division of the association.<br/>
<br/>
<a id="bill.5.49.0"></a><a id="pl.103.5"></a><var>103.5</var>    Sec. 49. Minnesota Statutes 2012, section 353.01, subdivision 2b, is amended to read:<br/>
<a id="pl.103.6"></a><var>103.6</var>    Subd. 2b. <b>Excluded employees.</b> (a) The following public employees are not eligible <br/>
<a id="pl.103.7"></a><var>103.7</var>to participate as members of the association with retirement coverage by the general <br/>
<a id="pl.103.8"></a><var>103.8</var>employees retirement plan, the local government correctional employees retirement plan <br/>
<a id="pl.103.9"></a><var>103.9</var>under chapter 353E, or the public employees police and fire retirement plan:<br/>
<a id="pl.103.10"></a><var>103.10</var>    (1) persons whose salary from one governmental subdivision never exceeds $425 in <br/>
<a id="pl.103.11"></a><var>103.11</var>a month;<br/>
<a id="pl.103.12"></a><var>103.12</var>(2) public officers who are elected to a governing body, city mayors, or persons who <br/>
<a id="pl.103.13"></a><var>103.13</var>are appointed to fill a vacancy in an elective office of a governing body, whose term of office <br/>
<a id="pl.103.14"></a><var>103.14</var>commences on or after July 1, 2002, for the service to be rendered in that elective position;<br/>
<a id="pl.103.15"></a><var>103.15</var>    (3) election officers or election judges;<br/>
<a id="pl.103.16"></a><var>103.16</var>    (4) patient and inmate personnel who perform services for a governmental <br/>
<a id="pl.103.17"></a><var>103.17</var>subdivision;<br/>
<a id="pl.103.18"></a><var>103.18</var>    (5) except as otherwise specified in subdivision 12a, employees who are hired for <br/>
<a id="pl.103.19"></a><var>103.19</var>a temporary position as defined under subdivision 12a, and employees who resign from <br/>
<a id="pl.103.20"></a><var>103.20</var>a nontemporary position and accept a temporary position within 30 days in the same <br/>
<a id="pl.103.21"></a><var>103.21</var>governmental subdivision;<br/>
<a id="pl.103.22"></a><var>103.22</var>    (6) employees who are employed by reason of work emergency caused by fire, <br/>
<a id="pl.103.23"></a><var>103.23</var>flood, storm, or similar disaster;<br/>
<a id="pl.103.24"></a><var>103.24</var>    (7) employees who by virtue of their employment in one governmental subdivision <br/>
<a id="pl.103.25"></a><var>103.25</var>are required by law to be a member of and to contribute to any of the plans or funds <br/>
<a id="pl.103.26"></a><var>103.26</var>administered by the Minnesota State Retirement System, the Teachers Retirement <br/>
<a id="pl.103.27"></a><var>103.27</var>Association, the Duluth Teachers Retirement Fund Association, and the St. Paul Teachers <br/>
<a id="pl.103.28"></a><var>103.28</var>Retirement Fund Association, or any police or firefighters relief association governed by <br/>
<a id="pl.103.29"></a><var>103.29</var>section 
<statute_ref>69.77</statute_ref> that has not consolidated with the Public Employees Retirement Association, <br/>
<a id="pl.103.30"></a><var>103.30</var>or any local police or firefighters consolidation account who have not elected the type of <br/>
<a id="pl.103.31"></a><var>103.31</var>benefit coverage provided by the public employees police and fire fund under sections <br/>
<a id="pl.103.32"></a><var>103.32</var><statute_ref>353A.01</statute_ref> to 
<statute_ref>353A.10</statute_ref>, or any persons covered by section 
<statute_ref>353.665, subdivision 4</statute_ref>, 5, or 6, <br/>
<a id="pl.103.33"></a><var>103.33</var>who have not elected public employees police and fire plan benefit coverage. This clause <br/>
<a id="pl.103.34"></a><var>103.34</var>must not be construed to prevent a person from being a member of and contributing to <br/>
<a id="pl.103.35"></a><var>103.35</var>the Public Employees Retirement Association and also belonging to and contributing to <br/>
<a id="pl.104.1"></a><var>104.1</var>another public pension plan or fund for other service occurring during the same period <br/>
<a id="pl.104.2"></a><var>104.2</var>of time. A person who meets the definition of "public employee" in subdivision 2 by <br/>
<a id="pl.104.3"></a><var>104.3</var>virtue of other service occurring during the same period of time becomes a member of the <br/>
<a id="pl.104.4"></a><var>104.4</var>association unless contributions are made to another public retirement fund on the salary <br/>
<a id="pl.104.5"></a><var>104.5</var>based on the other service or to the Teachers Retirement Association by a teacher as <br/>
<a id="pl.104.6"></a><var>104.6</var>defined in section 
         <statute_ref>354.05, subdivision 2</statute_ref>;<br/>
<a id="pl.104.7"></a><var>104.7</var>    (8) persons who are members of a religious order and are excluded from coverage <br/>
<a id="pl.104.8"></a><var>104.8</var>under the federal Old Age, Survivors, Disability, and Health Insurance Program for the <br/>
<a id="pl.104.9"></a><var>104.9</var>performance of service as specified in United States Code, title 42, section 410(a)(8)(A), <br/>
<a id="pl.104.10"></a><var>104.10</var>as amended through January 1, 1987, if no irrevocable election of coverage has been made <br/>
<a id="pl.104.11"></a><var>104.11</var>under section 3121(r) of the Internal Revenue Code of 1954, as amended;<br/>
<a id="pl.104.12"></a><var>104.12</var>    (9) employees of a governmental subdivision who have not reached the age of <br/>
<a id="pl.104.13"></a><var>104.13</var>23 and are enrolled on a full-time basis to attend or are attending classes on a full-time <br/>
<a id="pl.104.14"></a><var>104.14</var>basis at an accredited school, college, or university in an undergraduate, graduate, or <br/>
<a id="pl.104.15"></a><var>104.15</var>professional-technical program, or a public or charter high school;<br/>
<a id="pl.104.16"></a><var>104.16</var>    (10) resident physicians, medical interns, and pharmacist residents and pharmacist <br/>
<a id="pl.104.17"></a><var>104.17</var>interns who are serving in a degree or residency program in public hospitals or clinics;<br/>
<a id="pl.104.18"></a><var>104.18</var>    (11) students who are serving in an internship or residency program sponsored <br/>
<a id="pl.104.19"></a><var>104.19</var>by an accredited educational institution;<br/>
<a id="pl.104.20"></a><var>104.20</var>    (12) persons who hold a part-time adult supplementary technical college license who <br/>
<a id="pl.104.21"></a><var>104.21</var>render part-time teaching service in a technical college;<br/>
<a id="pl.104.22"></a><var>104.22</var>    (13) except for employees of Hennepin County or Hennepin Healthcare System, Inc., <br/>
<a id="pl.104.23"></a><var>104.23</var>foreign citizens who are employed by a governmental subdivision under a work permit, or <br/>
<a id="pl.104.24"></a><var>104.24</var>an H-1b visa initially issued or extended for a combined period less than three years of <br/>
<a id="pl.104.25"></a><var>104.25</var>employment. Upon extension of the employment beyond the three-year period, the foreign <br/>
<a id="pl.104.26"></a><var>104.26</var>citizens must be reported for membership beginning the first of the month thereafter <br/>
<a id="pl.104.27"></a><var>104.27</var>provided the monthly earnings threshold as provided under subdivision 2a is met;<br/>
<a id="pl.104.28"></a><var>104.28</var>    (14) public hospital employees who elected not to participate as members of the <br/>
<a id="pl.104.29"></a><var>104.29</var>association before 1972 and who did not elect to participate from July 1, 1988, to October <br/>
<a id="pl.104.30"></a><var>104.30</var>1, 1988;<br/>
<a id="pl.104.31"></a><var>104.31</var>    (15) except as provided in section 
         <statute_ref>353.86</statute_ref>, volunteer ambulance service personnel, as <br/>
<a id="pl.104.32"></a><var>104.32</var>defined in subdivision 35, but persons who serve as volunteer ambulance service personnel <br/>
<a id="pl.104.33"></a><var>104.33</var>may still qualify as public employees under subdivision 2 and may be members of the <br/>
<a id="pl.104.34"></a><var>104.34</var>Public Employees Retirement Association and participants in the general employees <br/>
<a id="pl.104.35"></a><var>104.35</var>retirement plan or the public employees police and fire plan, whichever applies, on the <br/>
<a id="pl.105.1"></a><var>105.1</var>basis of compensation received from public employment service other than service as <br/>
<a id="pl.105.2"></a><var>105.2</var>volunteer ambulance service personnel;<br/>
<a id="pl.105.3"></a><var>105.3</var>    (16) except as provided in section 
         <statute_ref>353.87</statute_ref>, volunteer firefighters, as defined in <br/>
<a id="pl.105.4"></a><var>105.4</var>subdivision 36, engaging in activities undertaken as part of volunteer firefighter duties, <br/>
<a id="pl.105.5"></a><var>105.5</var>but a person who is a volunteer firefighter may still qualify as a public employee under <br/>
<a id="pl.105.6"></a><var>105.6</var>subdivision 2 and may be a member of the Public Employees Retirement Association and <br/>
<a id="pl.105.7"></a><var>105.7</var>a participant in the general employees retirement plan or the public employees police <br/>
<a id="pl.105.8"></a><var>105.8</var>and fire plan, whichever applies, on the basis of compensation received from public <br/>
<a id="pl.105.9"></a><var>105.9</var>employment activities other than those as a volunteer firefighter;<br/>
<a id="pl.105.10"></a><var>105.10</var>    (17) pipefitters and associated trades personnel employed by Independent School <br/>
<a id="pl.105.11"></a><var>105.11</var>District No. 625, St. Paul, with coverage under a collective bargaining agreement by the <br/>
<a id="pl.105.12"></a><var>105.12</var>pipefitters local 455 pension plan who were either first employed after May 1, 1997, or, <br/>
<a id="pl.105.13"></a><var>105.13</var>if first employed before May 2, 1997, elected to be excluded under Laws 1997, chapter <br/>
<a id="pl.105.14"></a><var>105.14</var>241, article 2, section 12;<br/>
<a id="pl.105.15"></a><var>105.15</var>    (18) electrical workers, plumbers, carpenters, and associated trades personnel who <br/>
<a id="pl.105.16"></a><var>105.16</var>are employed by Independent School District No. 625, St. Paul, or the city of St. Paul, <br/>
<a id="pl.105.17"></a><var>105.17</var>who have retirement coverage under a collective bargaining agreement by the Electrical <br/>
<a id="pl.105.18"></a><var>105.18</var>Workers Local 110 pension plan, the United Association Plumbers Local 34 pension plan, <br/>
<a id="pl.105.19"></a><var>105.19</var>or the pension plan applicable to Carpenters Local 87 who were either first employed after <br/>
<a id="pl.105.20"></a><var>105.20</var>May 1, 2000, or, if first employed before May 2, 2000, elected to be excluded under <br/>
<a id="pl.105.21"></a><var>105.21</var>Laws 2000, chapter 461, article 7, section 5;<br/>
<a id="pl.105.22"></a><var>105.22</var>    (19) bricklayers, allied craftworkers, cement masons, glaziers, glassworkers, <br/>
<a id="pl.105.23"></a><var>105.23</var>painters, allied tradesworkers, and plasterers who are employed by the city of St. Paul <br/>
<a id="pl.105.24"></a><var>105.24</var>or Independent School District No. 625, St. Paul, with coverage under a collective <br/>
<a id="pl.105.25"></a><var>105.25</var>bargaining agreement by the Bricklayers and Allied Craftworkers Local 1 pension plan, <br/>
<a id="pl.105.26"></a><var>105.26</var>the Cement Masons Local 633 pension plan, the Glaziers and Glassworkers Local L-1324 <br/>
<a id="pl.105.27"></a><var>105.27</var>pension plan, the Painters and Allied Trades Local 61 pension plan, or the Twin Cities <br/>
<a id="pl.105.28"></a><var>105.28</var>Plasterers Local 265 pension plan who were either first employed after May 1, 2001, or if <br/>
<a id="pl.105.29"></a><var>105.29</var>first employed before May 2, 2001, elected to be excluded under Laws 2001, First Special <br/>
<a id="pl.105.30"></a><var>105.30</var>Session chapter 10, article 10, section 6;<br/>
<a id="pl.105.31"></a><var>105.31</var>    (20) plumbers who are employed by the Metropolitan Airports Commission, with <br/>
<a id="pl.105.32"></a><var>105.32</var>coverage under a collective bargaining agreement by the Plumbers Local 34 pension plan, <br/>
<a id="pl.105.33"></a><var>105.33</var>who either were first employed after May 1, 2001, or if first employed before May 2, <br/>
<a id="pl.105.34"></a><var>105.34</var>2001, elected to be excluded under Laws 2001, First Special Session chapter 10, article <br/>
<a id="pl.105.35"></a><var>105.35</var>10, section 6;<br/>
<a id="pl.106.1"></a><var>106.1</var>    (21) employees who are hired after June 30, 2002, to fill seasonal positions under <br/>
<a id="pl.106.2"></a><var>106.2</var>subdivision 12b which are limited in duration by the employer to 185 consecutive calendar <br/>
<a id="pl.106.3"></a><var>106.3</var>days or less in each year of employment with the governmental subdivision;<br/>
<a id="pl.106.4"></a><var>106.4</var>    (22) persons who are provided supported employment or work-study positions <br/>
<a id="pl.106.5"></a><var>106.5</var>by a governmental subdivision and who participate in an employment or industries <br/>
<a id="pl.106.6"></a><var>106.6</var>program maintained for the benefit of these persons where the governmental subdivision <br/>
<a id="pl.106.7"></a><var>106.7</var>limits the position's duration to three years or less, including persons participating in a <br/>
<a id="pl.106.8"></a><var>106.8</var>federal or state subsidized on-the-job training, work experience, senior citizen, youth, or <br/>
<a id="pl.106.9"></a><var>106.9</var>unemployment relief program where the training or work experience is not provided as a <br/>
<a id="pl.106.10"></a><var>106.10</var>part of, or for, future permanent public employment;<br/>
<a id="pl.106.11"></a><var>106.11</var>    (23) independent contractors and the employees of independent contractors;<br/>
<a id="pl.106.12"></a><var>106.12</var>    (24) reemployed annuitants of the association during the course of that <br/>
<a id="pl.106.13"></a><var>106.13</var>reemployment; and<br/>
<a id="pl.106.14"></a><var>106.14</var>(25) persons appointed to serve on a board or commission of a governmental <br/>
<a id="pl.106.15"></a><var>106.15</var>subdivision or an instrumentality thereof.<br/>
<a id="pl.106.16"></a><var>106.16</var>(b) Any person performing the duties of a public officer in a position defined in <br/>
<a id="pl.106.17"></a><var>106.17</var>subdivision 2a, paragraph (a), clause (3), is not an independent contractor and is not an <br/>
<a id="pl.106.18"></a><var>106.18</var>employee of an independent contractor.<br/>
<br/>
<a id="bill.5.50.0"></a><a id="pl.106.19"></a><var>106.19</var>    Sec. 50. Minnesota Statutes 2012, section 353.01, subdivision 6, is amended to read:<br/>
<a id="pl.106.20"></a><var>106.20</var>    Subd. 6. <b>Governmental subdivision.</b> (a) "Governmental subdivision" means a <br/>
<a id="pl.106.21"></a><var>106.21</var>county, city, town, school district within this state, or a department, unit or instrumentality <br/>
<a id="pl.106.22"></a><var>106.22</var>of state or local government, or any public body established under state or local <br/>
<a id="pl.106.23"></a><var>106.23</var>authority that has a governmental purpose, is under public control, is responsible for the <br/>
<a id="pl.106.24"></a><var>106.24</var>employment and payment of the salaries of employees of the entity, and receives a major <br/>
<a id="pl.106.25"></a><var>106.25</var>portion of its revenues from taxation, fees, assessments or from other public sources.<br/>
<a id="pl.106.26"></a><var>106.26</var>    (b) Governmental subdivision also means the Public Employees Retirement <br/>
<a id="pl.106.27"></a><var>106.27</var>Association, the League of Minnesota Cities, the Association of Metropolitan <br/>
<a id="pl.106.28"></a><var>106.28</var>Municipalities, charter schools formed under section 
         <statute_ref>124D.10</statute_ref>, service cooperatives <br/>
<a id="pl.106.29"></a><var>106.29</var>exercising retirement plan participation under section 
         <statute_ref>123A.21, subdivision 5</statute_ref>, joint powers <br/>
<a id="pl.106.30"></a><var>106.30</var>boards organized under section 
         <statute_ref>471.59, subdivision 11</statute_ref>, paragraph (a), family service <br/>
<a id="pl.106.31"></a><var>106.31</var>collaboratives and children's mental health collaboratives organized under section 
         <statute_ref>471.59</statute_ref>, <br/>
<a id="pl.106.32"></a><var>106.32</var>subdivision 11, paragraph (b) or (c), provided that the entities creating the collaboratives <br/>
<a id="pl.106.33"></a><var>106.33</var>are governmental units that otherwise qualify for retirement plan membership, public <br/>
<a id="pl.106.34"></a><var>106.34</var>hospitals owned or operated by, or an integral part of, a governmental subdivision or <br/>
<a id="pl.106.35"></a><var>106.35</var>governmental subdivisions, the Association of Minnesota Counties, the Minnesota <br/>
<a id="pl.107.1"></a><var>107.1</var>Inter-county Association, the Minnesota Municipal Utilities Association, the Metropolitan <br/>
<a id="pl.107.2"></a><var>107.2</var>Airports Commission, the University of Minnesota with respect to police officers covered <br/>
<a id="pl.107.3"></a><var>107.3</var>by the public employees police and fire retirement plan, the Minneapolis Employees <br/>
<a id="pl.107.4"></a><var>107.4</var>Retirement Fund for employment initially commenced after June 30, 1979, the Range <br/>
<a id="pl.107.5"></a><var>107.5</var>Association of Municipalities and Schools, soil and water conservation districts, economic <br/>
<a id="pl.107.6"></a><var>107.6</var>development authorities created or operating under sections 
         <statute_ref>469.090</statute_ref> to 
         <statute_ref>469.108</statute_ref>, the Port <br/>
<a id="pl.107.7"></a><var>107.7</var>Authority of the city of St. Paul, the Seaway Port Authority of Duluth, the Red Wing <br/>
<a id="pl.107.8"></a><var>107.8</var>Port Authority, the Spring Lake Park Fire Department, incorporated, the Lake Johanna <br/>
<a id="pl.107.9"></a><var>107.9</var>Volunteer Fire Department, incorporated, the Red Wing Environmental Learning Center, <br/>
<a id="pl.107.10"></a><var>107.10</var>the Dakota County Agricultural Society, and Hennepin Healthcare System, Inc., and the <br/>
<a id="pl.107.11"></a><var>107.11</var>Minneapolis Firefighters Relief Association and Minneapolis Police Relief Association <br/>
<a id="pl.107.12"></a><var>107.12</var>with respect to staff covered by the Public Employees Retirement Association general plan.<br/>
<a id="pl.107.13"></a><var>107.13</var>    (c) Governmental subdivision does not mean any municipal housing and <br/>
<a id="pl.107.14"></a><var>107.14</var>redevelopment authority organized under the provisions of sections 
         <statute_ref>469.001</statute_ref> to 
         <statute_ref>469.047</statute_ref>; <br/>
<a id="pl.107.15"></a><var>107.15</var>or any port authority organized under sections 
         <statute_ref>469.048</statute_ref> to 
         <statute_ref>469.089</statute_ref> other than the Port <br/>
<a id="pl.107.16"></a><var>107.16</var>Authority of the city of St. Paul or the Seaway Port Authority of Duluth and other than <br/>
<a id="pl.107.17"></a><var>107.17</var>the Red Wing Port Authority; or any hospital district organized or reorganized prior to <br/>
<a id="pl.107.18"></a><var>107.18</var>July 1, 1975, under sections 
         <statute_ref>447.31</statute_ref> to 
         <statute_ref>447.37</statute_ref> or the successor of the district; or the board <br/>
<a id="pl.107.19"></a><var>107.19</var>of a family service collaborative or children's mental health collaborative organized <br/>
<a id="pl.107.20"></a><var>107.20</var>under sections 
         <statute_ref>124D.23</statute_ref>, 
         <statute_ref>245.491</statute_ref> to 
         <statute_ref>245.495</statute_ref>, or 
         <statute_ref>471.59</statute_ref>, if that board is not controlled <br/>
<a id="pl.107.21"></a><var>107.21</var>by representatives of governmental units.<br/>
<a id="pl.107.22"></a><var>107.22</var>    (d) A nonprofit corporation governed by chapter 317A or organized under Internal <br/>
<a id="pl.107.23"></a><var>107.23</var>Revenue Code, section 501(c)(3), which is not covered by paragraph (a) or (b), is not a <br/>
<a id="pl.107.24"></a><var>107.24</var>governmental subdivision unless the entity has obtained a written advisory opinion from <br/>
<a id="pl.107.25"></a><var>107.25</var>the United States Department of Labor or a ruling from the Internal Revenue Service <br/>
<a id="pl.107.26"></a><var>107.26</var>declaring the entity to be an instrumentality of the state so as to provide that any future <br/>
<a id="pl.107.27"></a><var>107.27</var>contributions by the entity on behalf of its employees are contributions to a governmental <br/>
<a id="pl.107.28"></a><var>107.28</var>plan within the meaning of Internal Revenue Code, section 414(d).<br/>
<a id="pl.107.29"></a><var>107.29</var>    (e) A public body created by state or local authority may request membership on <br/>
<a id="pl.107.30"></a><var>107.30</var>behalf of its employees by providing sufficient evidence that it meets the requirements in <br/>
<a id="pl.107.31"></a><var>107.31</var>paragraph (a).<br/>
<a id="pl.107.32"></a><var>107.32</var>    (f) An entity determined to be a governmental subdivision is subject to the reporting <br/>
<a id="pl.107.33"></a><var>107.33</var>requirements of this chapter upon receipt of a written notice of eligibility from the <br/>
<a id="pl.107.34"></a><var>107.34</var>association.<br/>
<br/>
<a id="bill.5.51.0"></a><a id="pl.107.35"></a><var>107.35</var>    Sec. 51. Minnesota Statutes 2012, section 353.01, subdivision 10, is amended to read:<br/>
<a id="pl.108.1"></a><var>108.1</var>    Subd. 10. <b>Salary.</b> (a) Subject to the limitations of section 
         <statute_ref>356.611</statute_ref>, "salary" means:<br/>
<a id="pl.108.2"></a><var>108.2</var>    (1) the periodic compensation of a public employee, before deductions for deferred <br/>
<a id="pl.108.3"></a><var>108.3</var>compensation, supplemental retirement plans, or other voluntary salary reduction <br/>
<a id="pl.108.4"></a><var>108.4</var>programs, and also means "wages" and includes net income from fees; and<br/>
<a id="pl.108.5"></a><var>108.5</var>    (2) for a public employee who is covered by a supplemental retirement plan under <br/>
<a id="pl.108.6"></a><var>108.6</var>section 
         <statute_ref>356.24, subdivision 1</statute_ref>, clause (8), (9), or (10), which require all plan contributions <br/>
<a id="pl.108.7"></a><var>108.7</var>be made by the employer, the contribution to the applicable supplemental retirement plan <br/>
<a id="pl.108.8"></a><var>108.8</var>when an agreement between the parties establishes that the contribution will either result <br/>
<a id="pl.108.9"></a><var>108.9</var>in a mandatory reduction of employees' wages through payroll withholdings, or be made <br/>
<a id="pl.108.10"></a><var>108.10</var>in lieu of an amount that would otherwise be paid as wages; and.<br/>
<a id="pl.108.11"></a><var>108.11</var>    (3) for a public employee who has prior service covered by a local police or <br/>
<a id="pl.108.12"></a><var>108.12</var>firefighters relief association that has consolidated with the Public Employees Retirement <br/>
<a id="pl.108.13"></a><var>108.13</var>Association or to which section 
<statute_ref>353.665</statute_ref> applies and who has elected coverage either <br/>
<a id="pl.108.14"></a><var>108.14</var>under the public employees police and fire fund benefit plan under section 
<statute_ref>353A.08 <br/>
<a id="pl.108.15"></a><var>108.15</var></statute_ref>following the consolidation or under section 
<statute_ref>353.665, subdivision 4</statute_ref>, the rate of salary <br/>
<a id="pl.108.16"></a><var>108.16</var>upon which member contributions to the special fund of the relief association were made <br/>
<a id="pl.108.17"></a><var>108.17</var>prior to the effective date of the consolidation as specified by law and by bylaw provisions <br/>
<a id="pl.108.18"></a><var>108.18</var>governing the relief association on the date of the initiation of the consolidation procedure <br/>
<a id="pl.108.19"></a><var>108.19</var>and the actual periodic compensation of the public employee after the effective date of <br/>
<a id="pl.108.20"></a><var>108.20</var>consolidation.<br/>
<a id="pl.108.21"></a><var>108.21</var>    (b) Salary does not mean:<br/>
<a id="pl.108.22"></a><var>108.22</var>    (1) the fees paid to district court reporters, unused annual vacation or sick leave <br/>
<a id="pl.108.23"></a><var>108.23</var>payments, in lump-sum or periodic payments, severance payments, reimbursement of <br/>
<a id="pl.108.24"></a><var>108.24</var>expenses, lump-sum settlements not attached to a specific earnings period, or workers' <br/>
<a id="pl.108.25"></a><var>108.25</var>compensation payments;<br/>
<a id="pl.108.26"></a><var>108.26</var>    (2) employer-paid amounts used by an employee toward the cost of insurance <br/>
<a id="pl.108.27"></a><var>108.27</var>coverage, employer-paid fringe benefits, flexible spending accounts, cafeteria plans, health <br/>
<a id="pl.108.28"></a><var>108.28</var>care expense accounts, day care expenses, or any payments in lieu of any employer-paid <br/>
<a id="pl.108.29"></a><var>108.29</var>group insurance coverage, including the difference between single and family rates that <br/>
<a id="pl.108.30"></a><var>108.30</var>may be paid to a member with single coverage and certain amounts determined by the <br/>
<a id="pl.108.31"></a><var>108.31</var>executive director to be ineligible;<br/>
<a id="pl.108.32"></a><var>108.32</var>    (3) the amount equal to that which the employing governmental subdivision would <br/>
<a id="pl.108.33"></a><var>108.33</var>otherwise pay toward single or family insurance coverage for a covered employee when, <br/>
<a id="pl.108.34"></a><var>108.34</var>through a contract or agreement with some but not all employees, the employer:<br/>
<a id="pl.108.35"></a><var>108.35</var>    (i) discontinues, or for new hires does not provide, payment toward the cost of the <br/>
<a id="pl.108.36"></a><var>108.36</var>employee's selected insurance coverages under a group plan offered by the employer;<br/>
<a id="pl.109.1"></a><var>109.1</var>    (ii) makes the employee solely responsible for all contributions toward the cost of <br/>
<a id="pl.109.2"></a><var>109.2</var>the employee's selected insurance coverages under a group plan offered by the employer, <br/>
<a id="pl.109.3"></a><var>109.3</var>including any amount the employer makes toward other employees' selected insurance <br/>
<a id="pl.109.4"></a><var>109.4</var>coverages under a group plan offered by the employer; and<br/>
<a id="pl.109.5"></a><var>109.5</var>    (iii) provides increased salary rates for employees who do not have any <br/>
<a id="pl.109.6"></a><var>109.6</var>employer-paid group insurance coverages;<br/>
<a id="pl.109.7"></a><var>109.7</var>    (4) except as provided in section 
         <statute_ref>353.86</statute_ref> or 
         <statute_ref>353.87</statute_ref>, compensation of any kind paid to <br/>
<a id="pl.109.8"></a><var>109.8</var>volunteer ambulance service personnel or volunteer firefighters, as defined in subdivision <br/>
<a id="pl.109.9"></a><var>109.9</var>35 or 36;<br/>
<a id="pl.109.10"></a><var>109.10</var>    (5) the amount of compensation that exceeds the limitation provided in section <br/>
<statute_ref><a id="pl.109.11"></a><var>109.11</var>356.611
         </statute_ref>; and<br/>
<a id="pl.109.12"></a><var>109.12</var>    (6) amounts paid by a federal or state grant for which the grant specifically <br/>
<a id="pl.109.13"></a><var>109.13</var>prohibits grant proceeds from being used to make pension plan contributions, unless the <br/>
<a id="pl.109.14"></a><var>109.14</var>contributions to the plan are made from sources other than the federal or state grant.<br/>
<a id="pl.109.15"></a><var>109.15</var>    (c) Amounts provided to an employee by the employer through a grievance <br/>
<a id="pl.109.16"></a><var>109.16</var>proceeding or a legal settlement are salary only if the settlement is reviewed by the <br/>
<a id="pl.109.17"></a><var>109.17</var>executive director and the amounts are determined by the executive director to be <br/>
<a id="pl.109.18"></a><var>109.18</var>consistent with paragraph (a) and prior determinations.<br/>
<br/>
<a id="bill.5.52.0"></a><a id="pl.109.19"></a><var>109.19</var>    Sec. 52. Minnesota Statutes 2012, section 353.01, subdivision 16, is amended to read:<br/>
<a id="pl.109.20"></a><var>109.20</var>    Subd. 16. <b>Allowable service; limits and computation.</b> (a) "Allowable service" <br/>
<a id="pl.109.21"></a><var>109.21</var>means:<br/>
<a id="pl.109.22"></a><var>109.22</var>    (1) service during years of actual membership in the course of which employee <br/>
<a id="pl.109.23"></a><var>109.23</var>deductions were withheld from salary and contributions were made at the applicable rates <br/>
<a id="pl.109.24"></a><var>109.24</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.109.25"></a><var>109.25</var>(2) periods of service covered by payments in lieu of salary deductions under <br/>
<a id="pl.109.26"></a><var>109.26</var>sections 
         <statute_ref>353.27, subdivision 12</statute_ref>, and 
         <statute_ref>353.35</statute_ref>;<br/>
<a id="pl.109.27"></a><var>109.27</var>    (3) service in years during which the public employee was not a member but for <br/>
<a id="pl.109.28"></a><var>109.28</var>which the member later elected, while a member, to obtain credit by making payments to <br/>
<a id="pl.109.29"></a><var>109.29</var>the fund as permitted by any law then in effect;<br/>
<a id="pl.109.30"></a><var>109.30</var>    (4) a period of authorized leave of absence with pay from which deductions for <br/>
<a id="pl.109.31"></a><var>109.31</var>employee contributions are made, deposited, and credited to the fund;<br/>
<a id="pl.109.32"></a><var>109.32</var>    (5) a period of authorized personal, parental, or medical leave of absence without <br/>
<a id="pl.109.33"></a><var>109.33</var>pay, including a leave of absence covered under the federal Family Medical Leave Act, <br/>
<a id="pl.109.34"></a><var>109.34</var>that does not exceed one year, and for which a member obtained service credit for each <br/>
<a id="pl.109.35"></a><var>109.35</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.110.1"></a><var>110.1</var>salary deductions. An employee must return to public service and render a minimum of <br/>
<a id="pl.110.2"></a><var>110.2</var>three months of allowable service in order to be eligible to make payment under section <br/>
<statute_ref><a id="pl.110.3"></a><var>110.3</var>353.0161
         </statute_ref> for a subsequent authorized leave of absence without pay. Upon payment, the <br/>
<a id="pl.110.4"></a><var>110.4</var>employee must be granted allowable service credit for the purchased period;<br/>
<a id="pl.110.5"></a><var>110.5</var>    (6) a periodic, repetitive leave that is offered to all employees of a governmental <br/>
<a id="pl.110.6"></a><var>110.6</var>subdivision. The leave program may not exceed 208 hours per annual normal work cycle <br/>
<a id="pl.110.7"></a><var>110.7</var>as certified to the association by the employer. A participating member obtains service <br/>
<a id="pl.110.8"></a><var>110.8</var>credit by making employee contributions in an amount or amounts based on the member's <br/>
<a id="pl.110.9"></a><var>110.9</var>average salary, excluding overtime pay, that would have been paid if the leave had not been <br/>
<a id="pl.110.10"></a><var>110.10</var>taken. The employer shall pay the employer and additional employer contributions on <br/>
<a id="pl.110.11"></a><var>110.11</var>behalf of the participating member. The employee and the employer are responsible to pay <br/>
<a id="pl.110.12"></a><var>110.12</var>interest on their respective shares at the rate of 8.5 percent a year, compounded annually, <br/>
<a id="pl.110.13"></a><var>110.13</var>from the end of the normal cycle until full payment is made. An employer shall also make <br/>
<a id="pl.110.14"></a><var>110.14</var>the employer and additional employer contributions, plus 8.5 percent interest, compounded <br/>
<a id="pl.110.15"></a><var>110.15</var>annually, on behalf of an employee who makes employee contributions but terminates <br/>
<a id="pl.110.16"></a><var>110.16</var>public service. The employee contributions must be made within one year after the end of <br/>
<a id="pl.110.17"></a><var>110.17</var>the annual normal working cycle or within 30 days after termination of public service, <br/>
<a id="pl.110.18"></a><var>110.18</var>whichever is sooner. The executive director shall prescribe the manner and forms to be <br/>
<a id="pl.110.19"></a><var>110.19</var>used by a governmental subdivision in administering a periodic, repetitive leave. Upon <br/>
<a id="pl.110.20"></a><var>110.20</var>payment, the member must be granted allowable service credit for the purchased period;<br/>
<a id="pl.110.21"></a><var>110.21</var>    (7) an authorized temporary or seasonal layoff under subdivision 12, limited to three <br/>
<a id="pl.110.22"></a><var>110.22</var>months allowable service per authorized temporary or seasonal layoff in one calendar year. <br/>
<a id="pl.110.23"></a><var>110.23</var>An employee who has received the maximum service credit allowed for an authorized <br/>
<a id="pl.110.24"></a><var>110.24</var>temporary or seasonal layoff must return to public service and must obtain a minimum of <br/>
<a id="pl.110.25"></a><var>110.25</var>three months of allowable service subsequent to the layoff in order to receive allowable <br/>
<a id="pl.110.26"></a><var>110.26</var>service for a subsequent authorized temporary or seasonal layoff;<br/>
<a id="pl.110.27"></a><var>110.27</var>    (8) a period during which a member is absent from employment by a governmental <br/>
<a id="pl.110.28"></a><var>110.28</var>subdivision by reason of service in the uniformed services, as defined in United States <br/>
<a id="pl.110.29"></a><var>110.29</var>Code, title 38, section 4303(13), if the member returns to public service with the same <br/>
<a id="pl.110.30"></a><var>110.30</var>governmental subdivision upon discharge from service in the uniformed service within the <br/>
<a id="pl.110.31"></a><var>110.31</var>time frames required under United States Code, title 38, section 4312(e), provided that <br/>
<a id="pl.110.32"></a><var>110.32</var>the member did not separate from uniformed service with a dishonorable or bad conduct <br/>
<a id="pl.110.33"></a><var>110.33</var>discharge or under other than honorable conditions. The service must be credited if the <br/>
<a id="pl.110.34"></a><var>110.34</var>member pays into the fund equivalent employee contributions based upon the contribution <br/>
<a id="pl.110.35"></a><var>110.35</var>rate or rates in effect at the time that the uniformed service was performed multiplied by <br/>
<a id="pl.110.36"></a><var>110.36</var>the full and fractional years being purchased and applied to the annual salary rate. The <br/>
<a id="pl.111.1"></a><var>111.1</var>annual salary rate is the average annual salary, excluding overtime pay, during the purchase <br/>
<a id="pl.111.2"></a><var>111.2</var>period that the member would have received if the member had continued to be employed <br/>
<a id="pl.111.3"></a><var>111.3</var>in covered employment rather than to provide uniformed service, or, if the determination <br/>
<a id="pl.111.4"></a><var>111.4</var>of that rate is not reasonably certain, the annual salary rate is the member's average salary <br/>
<a id="pl.111.5"></a><var>111.5</var>rate, excluding overtime pay, during the 12-month period of covered employment rendered <br/>
<a id="pl.111.6"></a><var>111.6</var>immediately preceding the period of the uniformed service. Payment of the member <br/>
<a id="pl.111.7"></a><var>111.7</var>equivalent contributions must be made during a period that begins with the date on which <br/>
<a id="pl.111.8"></a><var>111.8</var>the individual returns to public employment and that is three times the length of the <br/>
<a id="pl.111.9"></a><var>111.9</var>military leave period, or within five years of the date of discharge from the military service, <br/>
<a id="pl.111.10"></a><var>111.10</var>whichever is less. If the determined payment period is less than one year, the contributions <br/>
<a id="pl.111.11"></a><var>111.11</var>required under this clause to receive service credit may be made within one year of the <br/>
<a id="pl.111.12"></a><var>111.12</var>discharge date. Payment may not be accepted following 30 days after termination of <br/>
<a id="pl.111.13"></a><var>111.13</var>public service under subdivision 11a. If the member equivalent contributions provided for <br/>
<a id="pl.111.14"></a><var>111.14</var>in this clause are not paid in full, the member's allowable service credit must be prorated <br/>
<a id="pl.111.15"></a><var>111.15</var>by multiplying the full and fractional number of years of uniformed service eligible for <br/>
<a id="pl.111.16"></a><var>111.16</var>purchase by the ratio obtained by dividing the total member contributions received by the <br/>
<a id="pl.111.17"></a><var>111.17</var>total member contributions otherwise required under this clause. The equivalent employer <br/>
<a id="pl.111.18"></a><var>111.18</var>contribution, and, if applicable, the equivalent additional employer contribution must be <br/>
<a id="pl.111.19"></a><var>111.19</var>paid by the governmental subdivision employing the member if the member makes the <br/>
<a id="pl.111.20"></a><var>111.20</var>equivalent employee contributions. The employer payments must be made from funds <br/>
<a id="pl.111.21"></a><var>111.21</var>available to the employing unit, using the employer and additional employer contribution <br/>
<a id="pl.111.22"></a><var>111.22</var>rate or rates in effect at the time that the uniformed service was performed, applied to the <br/>
<a id="pl.111.23"></a><var>111.23</var>same annual salary rate or rates used to compute the equivalent member contribution. The <br/>
<a id="pl.111.24"></a><var>111.24</var>governmental subdivision involved may appropriate money for those payments. The <br/>
<a id="pl.111.25"></a><var>111.25</var>amount of service credit obtainable under this section may not exceed five years unless a <br/>
<a id="pl.111.26"></a><var>111.26</var>longer purchase period is required under United States Code, title 38, section 4312. The <br/>
<a id="pl.111.27"></a><var>111.27</var>employing unit shall pay interest on all equivalent member and employer contribution <br/>
<a id="pl.111.28"></a><var>111.28</var>amounts payable under this clause. Interest must be computed at a rate of 8.5 percent <br/>
<a id="pl.111.29"></a><var>111.29</var>compounded annually from the end of each fiscal year of the leave or the break in service <br/>
<a id="pl.111.30"></a><var>111.30</var>to the end of the month in which the payment is received. Upon payment, the employee <br/>
<a id="pl.111.31"></a><var>111.31</var>must be granted allowable service credit for the purchased period; or<br/>
<a id="pl.111.32"></a><var>111.32</var>(9) a period specified under section 
         <statute_ref>353.0162</statute_ref>.<br/>
<a id="pl.111.33"></a><var>111.33</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.111.34"></a><var>111.34</var>state officers and employees displaced by the Community Corrections Act, chapter 401, <br/>
<a id="pl.111.35"></a><var>111.35</var>and transferred into county service under section 
         <statute_ref>401.04</statute_ref>, "allowable service" means the <br/>
<a id="pl.112.1"></a><var>112.1</var>combined years of allowable service as defined in paragraph (a), clauses (1) to (6), and <br/>
<a id="pl.112.2"></a><var>112.2</var>section 
         <statute_ref>352.01, subdivision 11</statute_ref>.<br/>
<a id="pl.112.3"></a><var>112.3</var>    (c) For a public employee who has prior service covered by a local police or <br/>
<a id="pl.112.4"></a><var>112.4</var>firefighters relief association that has consolidated with the Public Employees Retirement <br/>
<a id="pl.112.5"></a><var>112.5</var>Association under chapter 353A or to which section 
<statute_ref>353.665</statute_ref> applies, and who has <br/>
<a id="pl.112.6"></a><var>112.6</var>elected the type of benefit coverage provided by the public employees police and fire <br/>
<a id="pl.112.7"></a><var>112.7</var>fund either under section 
<statute_ref>353A.08</statute_ref> following the consolidation or under section 
<statute_ref>353.665, <br/>
<a id="pl.112.8"></a><var>112.8</var>subdivision 4
</statute_ref>, "allowable service" is a period of service credited by the local police or <br/>
<a id="pl.112.9"></a><var>112.9</var>firefighters relief association as of the effective date of the consolidation based on law <br/>
<a id="pl.112.10"></a><var>112.10</var>and on bylaw provisions governing the relief association on the date of the initiation <br/>
<a id="pl.112.11"></a><var>112.11</var>of the consolidation procedure.<br/>
<a id="pl.112.12"></a><var>112.12</var>    (d) (c) No member may receive more than 12 months of allowable service credit in a <br/>
<a id="pl.112.13"></a><var>112.13</var>year either for vesting purposes or for benefit calculation purposes. For an active member <br/>
<a id="pl.112.14"></a><var>112.14</var>who was an active member of the former Minneapolis Firefighters Relief Association <br/>
<a id="pl.112.15"></a><var>112.15</var>on December 29, 2011, "allowable service" is the period of service credited by the <br/>
<a id="pl.112.16"></a><var>112.16</var>Minneapolis Firefighters Relief Association as reflected in the transferred records of the <br/>
<a id="pl.112.17"></a><var>112.17</var>association up to December 30, 2011, and the period of service credited under paragraph <br/>
<a id="pl.112.18"></a><var>112.18</var>(a), clause (1), after December 30, 2011. For an active member who was an active member <br/>
<a id="pl.112.19"></a><var>112.19</var>of the former Minneapolis Police Relief Association on December 29, 2011, "allowable <br/>
<a id="pl.112.20"></a><var>112.20</var>service" is the period of service credited by the Minneapolis Police Relief Association as <br/>
<a id="pl.112.21"></a><var>112.21</var>reflected in the transferred records of the association up to December 30, 2011, and the <br/>
<a id="pl.112.22"></a><var>112.22</var>period of service credited under paragraph (a), clause (1), after December 30, 2011.<br/>
<a id="pl.112.23"></a><var>112.23</var>    (e) (d) MS 2002 [Expired]<br/>
<br/>
<a id="bill.5.53.0"></a><a id="pl.112.24"></a><var>112.24</var>    Sec. 53. Minnesota Statutes 2012, section 353.64, subdivision 1a, is amended to read:<br/>
<a id="pl.112.25"></a><var>112.25</var>    Subd. 1a. <b>Police and fire plan; other members.</b> (a) A person who prior to July <br/>
<a id="pl.112.26"></a><var>112.26</var>1, 1961, was a member of the police and fire plan, by virtue of being a police officer or <br/>
<a id="pl.112.27"></a><var>112.27</var>firefighter, shall, as long as the person remains in either position, continue membership in <br/>
<a id="pl.112.28"></a><var>112.28</var>the plan.<br/>
<a id="pl.112.29"></a><var>112.29</var>(b) A person who was employed by a governmental subdivision as a police officer <br/>
<a id="pl.112.30"></a><var>112.30</var>and was a member of the police and fire plan on July 1, 1978, by virtue of being a police <br/>
<a id="pl.112.31"></a><var>112.31</var>officer as defined by this section on that date, and if employed by the same governmental <br/>
<a id="pl.112.32"></a><var>112.32</var>subdivision in a position in the same department in which the person was employed on <br/>
<a id="pl.112.33"></a><var>112.33</var>that date, continues to be a member of the plan, whether or not that person has the power <br/>
<a id="pl.112.34"></a><var>112.34</var>of arrest by warrant and is licensed by the Peace Officers Standards and Training Board <br/>
<a id="pl.112.35"></a><var>112.35</var>after that date.<br/>
<a id="pl.113.1"></a><var>113.1</var>(c) (b) A person who was employed as a correctional officer by Rice county before <br/>
<a id="pl.113.2"></a><var>113.2</var>July 1, 1998, for the duration of employment in the correctional position held on July 1, <br/>
<a id="pl.113.3"></a><var>113.3</var>1998, continues to be a member of the public employees police and fire plan, whether or <br/>
<a id="pl.113.4"></a><var>113.4</var>not the person has the power of arrest by warrant and is licensed by the Peace Officers <br/>
<a id="pl.113.5"></a><var>113.5</var>Standards and Training Board after that date.<br/>
<a id="pl.113.6"></a><var>113.6</var>(d) A person who was employed by a governmental subdivision as a police officer <br/>
<a id="pl.113.7"></a><var>113.7</var>or a firefighter, whichever applies, was an active member of the local police or salaried <br/>
<a id="pl.113.8"></a><var>113.8</var>firefighters relief association located in that governmental subdivision by virtue of that <br/>
<a id="pl.113.9"></a><var>113.9</var>employment as of the effective date of the consolidation as authorized by sections <br/>
<a id="pl.113.10"></a><var>113.10</var><statute_ref>353A.01</statute_ref> to 
<statute_ref>353A.10</statute_ref>, and has elected coverage by the public employees police and fire <br/>
<a id="pl.113.11"></a><var>113.11</var>plan, shall become a member of the police and fire plan after that date if employed by <br/>
<a id="pl.113.12"></a><var>113.12</var>the same governmental subdivision in a position in the same department in which the <br/>
<a id="pl.113.13"></a><var>113.13</var>person was employed on that date.<br/>
<a id="pl.113.14"></a><var>113.14</var>(e) Any police officer or firefighter of a relief association that has consolidated <br/>
<a id="pl.113.15"></a><var>113.15</var>with the association for which the employee has not elected coverage by the public <br/>
<a id="pl.113.16"></a><var>113.16</var>employees police and fire plan as provided in sections 
<statute_ref>353A.01</statute_ref> to 
<statute_ref>353A.10</statute_ref>, or any police <br/>
<a id="pl.113.17"></a><var>113.17</var>officer or firefighter to whom section 
<statute_ref>353.665</statute_ref> applies who has not elected coverage by <br/>
<a id="pl.113.18"></a><var>113.18</var>the public employees police and fire plan as provided in section 
<statute_ref>353.665, subdivision 4</statute_ref>, <br/>
<a id="pl.113.19"></a><var>113.19</var>must become a member of the public employees police and fire plan, but is not subject <br/>
<a id="pl.113.20"></a><var>113.20</var>to the provisions of sections 
<statute_ref>353.651</statute_ref> to 
<statute_ref>353.659</statute_ref> unless an election for such coverage is <br/>
<a id="pl.113.21"></a><var>113.21</var>made under section 
<statute_ref>353.665, subdivision 4</statute_ref>.<br/>
<br/>
<a id="bill.5.54.0"></a><a id="pl.113.22"></a><var>113.22</var>    Sec. 54. Minnesota Statutes 2012, section 353.659, is amended to read:<br/>
<a id="pl.113.23"></a><var>113.23</var><b>353.659 LOCAL RELIEF ASSOCIATION CONSOLIDATION ACCOUNT </b><br/>
<a id="pl.113.24"></a><var>113.24</var><b>BENEFITS.</b><br/>
<a id="pl.113.25"></a><var>113.25</var>(a) For any person who has had prior service covered by a local police or firefighters <br/>
<a id="pl.113.26"></a><var>113.26</var>relief association which has consolidated merged with the public employees police and <br/>
<a id="pl.113.27"></a><var>113.27</var>fire retirement association plan and who has elected the type of benefit coverage provided <br/>
<a id="pl.113.28"></a><var>113.28</var>by the public employees police and fire fund benefit plan under section 
<statute_ref>353A.08</statute_ref> following <br/>
<a id="pl.113.29"></a><var>113.29</var>the consolidation as permitted by the applicable law, any the retirement benefits payable <br/>
<a id="pl.113.30"></a><var>113.30</var>are governed by the applicable provisions of this chapter.<br/>
<a id="pl.113.31"></a><var>113.31</var>(b) For any person who has had prior service covered by a local police or firefighters <br/>
<a id="pl.113.32"></a><var>113.32</var>relief association which has consolidated merged with the public employees police and fire <br/>
<a id="pl.113.33"></a><var>113.33</var>retirement association plan and who has did not elected elect the type of benefit coverage <br/>
<a id="pl.113.34"></a><var>113.34</var>provided by the public employees police and fire fund benefit plan under section 
<statute_ref>353A.08<br/>
</statute_ref><a id="pl.113.35"></a><var>113.35</var> following the consolidation as permitted by the applicable law, any the retirement benefits <br/>
<a id="pl.114.1"></a><var>114.1</var>payable are governed by the provisions of Minnesota Statutes 2012, sections 
         <statute_ref>353B.01</statute_ref> to <br/>
<statute_ref><a id="pl.114.2"></a><var>114.2</var>353B.13
         </statute_ref> which apply applied to the applicable former relief association or by section <br/>
<a id="pl.114.3"></a><var>114.3</var>353.6511 or 353.6512, if applicable.<br/>
<br/>
<a id="bill.5.55.0"></a><a id="pl.114.4"></a><var>114.4</var>    Sec. 55. Minnesota Statutes 2012, section 353.665, subdivision 1, is amended to read:<br/>
<a id="pl.114.5"></a><var>114.5</var>    Subdivision 1. <b>Merger authorized</b><b> Application</b><b>.</b> (a) Notwithstanding any <br/>
<a id="pl.114.6"></a><var>114.6</var>provision of law to the contrary, unless the applicable municipality elects otherwise under <br/>
<a id="pl.114.7"></a><var>114.7</var>paragraph (b), every This section applies to the local police and fire relief associations or <br/>
<a id="pl.114.8"></a><var>114.8</var>consolidation account under chapter 353A in existence on March 1, 1999, becomes a part <br/>
<a id="pl.114.9"></a><var>114.9</var>of accounts that merged with the public employees police and fire plan and fund governed <br/>
<a id="pl.114.10"></a><var>114.10</var>by sections 
<statute_ref>353.63</statute_ref> to 
<statute_ref>353.659</statute_ref> on July 1, 1999 and are specified in paragraph (b).<br/>
<a id="pl.114.11"></a><var>114.11</var>(b) If a municipality desires to retain its consolidation account The former local <br/>
<a id="pl.114.12"></a><var>114.12</var>police or fire relief associations or consolidation accounts, whichever applies, the <br/>
<a id="pl.114.13"></a><var>114.13</var>governing body of the municipality must adopt a resolution to that effect and must file a <br/>
<a id="pl.114.14"></a><var>114.14</var>copy of the resolution with the secretary of state, the state auditor, the legislative auditor, <br/>
<a id="pl.114.15"></a><var>114.15</var>the management and budget commissioner, the revenue commissioner, the executive <br/>
<a id="pl.114.16"></a><var>114.16</var>director of the public employees retirement association, and the executive director of <br/>
<a id="pl.114.17"></a><var>114.17</var>the Legislative Commission on Pensions and Retirement. The retention election must <br/>
<a id="pl.114.18"></a><var>114.18</var>apply to both consolidation accounts if the municipality is associated with more than <br/>
<a id="pl.114.19"></a><var>114.19</var>one consolidation account. The retention resolution must be adopted and filed with all <br/>
<a id="pl.114.20"></a><var>114.20</var>recipients before June 15, 1999. are:<br/>
<a id="pl.114.21"></a><var>114.21</var>(1) the former local police and fire consolidation accounts that merged with the public <br/>
<a id="pl.114.22"></a><var>114.22</var>employees police and fire retirement plan and fund under Laws 1999, chapter 222, article 4;<br/>
<a id="pl.114.23"></a><var>114.23</var>(2) the former Minneapolis Firefighters Relief Association;<br/>
<a id="pl.114.24"></a><var>114.24</var>(3) the former Minneapolis Police Relief Association;<br/>
<a id="pl.114.25"></a><var>114.25</var>(4) the former Fairmont Police Relief Association; and<br/>
<a id="pl.114.26"></a><var>114.26</var>(5) the former Virginia Fire Consolidation Account.<br/>
<br/>
<a id="bill.5.56.0"></a><a id="pl.114.27"></a><var>114.27</var>    Sec. 56. Minnesota Statutes 2012, section 353.665, subdivision 5, is amended to read:<br/>
<a id="pl.114.28"></a><var>114.28</var>    Subd. 5. <b>Benefit coverage for </b><b>retirees and benefit recipients</b><b> certain former local </b><br/>
<a id="pl.114.29"></a><var>114.29</var><b>relief association or consolidation account members</b><b>.</b> (a) A person who received a<br/>
<a id="pl.114.30"></a><var>114.30</var> Except as provided in paragraph (b), (e), or (f), the annuity, service pension, a disability <br/>
<a id="pl.114.31"></a><var>114.31</var>pension or benefit, or a survivor benefit from a merging attributable to or of a former <br/>
<a id="pl.114.32"></a><var>114.32</var>member of a former merged local police or fire consolidation account for the month of June <br/>
<a id="pl.114.33"></a><var>114.33</var>1999, and who has did not previously elected participation in the Minnesota postretirement <br/>
<a id="pl.114.34"></a><var>114.34</var>investment fund for any future postretirement adjustments rather than the postretirement <br/>
<a id="pl.115.1"></a><var>115.1</var>adjustment mechanism or mechanisms of the relief association benefit plan under <br/>
<a id="pl.115.2"></a><var>115.2</var>section 
<statute_ref>353A.08, subdivision 1</statute_ref>, may elect participation in the Minnesota postretirement <br/>
<a id="pl.115.3"></a><var>115.3</var>investment fund for any future postretirement adjustments or retention of the <br/>
<a id="pl.115.4"></a><var>115.4</var>postretirement adjustment mechanism or mechanisms of the relief association benefit plan <br/>
<a id="pl.115.5"></a><var>115.5</var>as reflected in the applicable provisions of chapter 353B. This election must be in writing <br/>
<a id="pl.115.6"></a><var>115.6</var>on a form prescribed by the executive director and must be made before September 1, <br/>
<a id="pl.115.7"></a><var>115.7</var>1999. elect coverage by all or a portion of the public employees police and fire retirement <br/>
<a id="pl.115.8"></a><var>115.8</var>plan as permitted by applicable law must be calculated or computed under the benefit plan <br/>
<a id="pl.115.9"></a><var>115.9</var>provisions of the applicable former local police or paid firefighters relief association.<br/>
<a id="pl.115.10"></a><var>115.10</var>(b) If an eligible person is a minor, the election must be made by the person's <br/>
<a id="pl.115.11"></a><var>115.11</var>parent or legal guardian. If the eligible person makes no affirmative election under this <br/>
<a id="pl.115.12"></a><var>115.12</var>subdivision, the person retains the postretirement adjustment mechanism or mechanisms <br/>
<a id="pl.115.13"></a><var>115.13</var>of the relief association benefit plan as reflected in the applicable provisions of chapter <br/>
<a id="pl.115.14"></a><var>115.14</var>353B. The annuity, service pension, disability pension or benefit, or survivor benefit <br/>
<a id="pl.115.15"></a><var>115.15</var>attributable to or of a former member of the former Minneapolis Firefighters Relief <br/>
<a id="pl.115.16"></a><var>115.16</var>Association or of the former Minneapolis Police Relief Association who had that status as <br/>
<a id="pl.115.17"></a><var>115.17</var>of December 29, 2011, continue after consolidation in the same amount and under the <br/>
<a id="pl.115.18"></a><var>115.18</var>same terms as provided in chapter 423B or 423C, respectively, and the bylaws in effect as <br/>
<a id="pl.115.19"></a><var>115.19</var>of that date, except that the unit value is governed by section 353.01, subdivisions 10a and <br/>
<a id="pl.115.20"></a><var>115.20</var>10b, respectively, and the postretirement adjustments after December 31, 2015, must be <br/>
<a id="pl.115.21"></a><var>115.21</var>calculated solely under section 353.6511, subdivision 7.<br/>
<a id="pl.115.22"></a><var>115.22</var>(c) On behalf of former members of the Minneapolis Firefighters Relief Association <br/>
<a id="pl.115.23"></a><var>115.23</var>or Minneapolis Police Relief Association, the executive director shall withhold any health <br/>
<a id="pl.115.24"></a><var>115.24</var>insurance or dental insurance premiums designated by the annuitant or benefit recipient <br/>
<a id="pl.115.25"></a><var>115.25</var>and shall transfer them to the city of Minneapolis. The Public Employees Retirement <br/>
<a id="pl.115.26"></a><var>115.26</var>Association may charge a necessary and reasonable monthly administrative fee to the city <br/>
<a id="pl.115.27"></a><var>115.27</var>of Minneapolis for this function and bill it in addition to the employer contribution under <br/>
<a id="pl.115.28"></a><var>115.28</var>section 353.65, subdivision 3, paragraph (b). Notwithstanding any provision of chapter <br/>
<a id="pl.115.29"></a><var>115.29</var>13 to the contrary, the executive director shall provide the city of Minneapolis with the <br/>
<a id="pl.115.30"></a><var>115.30</var>current addresses of former members of the Minneapolis Firefighters Relief Association <br/>
<a id="pl.115.31"></a><var>115.31</var>and the Minneapolis Police Relief Association. The city of Minneapolis shall continue to <br/>
<a id="pl.115.32"></a><var>115.32</var>administer the health and dental insurance programs as constituted May 1, 2011, for the <br/>
<a id="pl.115.33"></a><var>115.33</var>former members of the former Minneapolis relief associations.<br/>
<a id="pl.115.34"></a><var>115.34</var>(d) The executive director shall cooperate with the Minneapolis firefighters <br/>
<a id="pl.115.35"></a><var>115.35</var>fraternal association and the Minneapolis police fraternal association to ensure adequate <br/>
<a id="pl.115.36"></a><var>115.36</var>communications with the former members of the former Minneapolis Firefighters <br/>
<a id="pl.116.1"></a><var>116.1</var>Relief Association or the Minneapolis Police Relief Association consistent with Public <br/>
<a id="pl.116.2"></a><var>116.2</var>Employees Retirement Association policy.<br/>
<a id="pl.116.3"></a><var>116.3</var>(c) The survivor benefit payable on behalf of any service pension or disability <br/>
<a id="pl.116.4"></a><var>116.4</var>benefit recipient who elects participation in the Minnesota postretirement investment fund <br/>
<a id="pl.116.5"></a><var>116.5</var>must be calculated under the relief association benefit plan in effect on the effective date <br/>
<a id="pl.116.6"></a><var>116.6</var>of consolidation under chapter 353A as reflected in the applicable provisions of chapter <br/>
<a id="pl.116.7"></a><var>116.7</var>353B. (e) The annuity, service pension, disability pension or benefit, or survivor benefit <br/>
<a id="pl.116.8"></a><var>116.8</var>attributable to or of a former member of the former Fairmont Police Relief Association <br/>
<a id="pl.116.9"></a><var>116.9</var>must be calculated or computed under Minnesota Statutes 2000, sections 423.41 to <br/>
<a id="pl.116.10"></a><var>116.10</var>423.46, 423.48 to 423.59, 423.61, and 423.62; Laws 1963, chapter 423; Laws 1977, <br/>
<a id="pl.116.11"></a><var>116.11</var>chapter 100; and Laws 1999, chapter 222, article 3, section 4, except that the annual <br/>
<a id="pl.116.12"></a><var>116.12</var>base salary figure for pension and benefit determinations upon consolidation and for <br/>
<a id="pl.116.13"></a><var>116.13</var>the balance of calendar year 2012 is $106,666.67 and after December 31, 2012, annual <br/>
<a id="pl.116.14"></a><var>116.14</var>postretirement adjustments of pensions and benefits in force must be calculated solely <br/>
<a id="pl.116.15"></a><var>116.15</var>under section 356.415, subdivision 1c.<br/>
<a id="pl.116.16"></a><var>116.16</var>(f) The annuity, service pension, disability pension or benefit, or survivor benefit <br/>
<a id="pl.116.17"></a><var>116.17</var>attributable to or of a former member of the former Virginia firefighters consolidation <br/>
<a id="pl.116.18"></a><var>116.18</var>account must be calculated or computed under the election made under Minnesota <br/>
<a id="pl.116.19"></a><var>116.19</var>Statutes 2012, section 353A.08, unless the person made a subsequent election under <br/>
<a id="pl.116.20"></a><var>116.20</var>Minnesota Statutes 2012, section 353.6691, subdivision 4, subject to any additional ad hoc <br/>
<a id="pl.116.21"></a><var>116.21</var>postretirement adjustment under Minnesota Statutes 2012, section 353.6691, subdivision <br/>
<a id="pl.116.22"></a><var>116.22</var>5, paragraph (d).<br/>
<br/>
<a id="bill.5.57.0"></a><a id="pl.116.23"></a><var>116.23</var>    Sec. 57. Minnesota Statutes 2012, section 353.665, is amended by adding a subdivision <br/>
<a id="pl.116.24"></a><var>116.24</var>to read:<br/>
<a id="pl.116.25"></a><var>116.25</var>    Subd. 5a. <b>Continuing provisions; prior Minneapolis relief associations.</b><br/>
<a id="pl.116.26"></a><var>116.26</var>(a) Health insurance account retention. The health insurance account of the former <br/>
<a id="pl.116.27"></a><var>116.27</var>Minneapolis Firefighters Relief Association and the health insurance account of the <br/>
<a id="pl.116.28"></a><var>116.28</var>former Minneapolis Police Relief Association shall remain with the financial institution <br/>
<a id="pl.116.29"></a><var>116.29</var>holding the applicable account on the effective date of this section, if the applicable <br/>
<a id="pl.116.30"></a><var>116.30</var>financial institution adequately performs all trustee and fiduciary duties with respect to the <br/>
<a id="pl.116.31"></a><var>116.31</var>applicable account as a condition of the retention of the account.<br/>
<a id="pl.116.32"></a><var>116.32</var>(b) Health insurance account administrative expenses. Under Laws 2011, First <br/>
<a id="pl.116.33"></a><var>116.33</var>Special Session chapter 8, article 6, section 14, and article 7, section 14, three years of <br/>
<a id="pl.116.34"></a><var>116.34</var>expected administrative expenses were prepaid from the Minneapolis Firefighters Relief <br/>
<a id="pl.116.35"></a><var>116.35</var>Association and the Minneapolis Police Relief Association health insurance accounts to <br/>
<a id="pl.117.1"></a><var>117.1</var>the financial institution holding the applicable account. After the three-year prepayment <br/>
<a id="pl.117.2"></a><var>117.2</var>period, the beneficiaries of the applicable account are responsible for the payment of <br/>
<a id="pl.117.3"></a><var>117.3</var>administrative expenses related to the operation of the account.<br/>
<a id="pl.117.4"></a><var>117.4</var>(c) Successor in interest. The public employees police and fire retirement plan <br/>
<a id="pl.117.5"></a><var>117.5</var>and fund is the successor in interest to all claims for or against the former Minneapolis <br/>
<a id="pl.117.6"></a><var>117.6</var>Firefighters Relief Association and the former Minneapolis Police Relief Association. The <br/>
<a id="pl.117.7"></a><var>117.7</var>public employees police and fire retirement plan and fund is not liable for any claim against <br/>
<a id="pl.117.8"></a><var>117.8</var>a former Minneapolis relief association, its governing board, or its administrative staff <br/>
<a id="pl.117.9"></a><var>117.9</var>acting in a fiduciary capacity, under chapter 356A or common law, which is founded upon <br/>
<a id="pl.117.10"></a><var>117.10</var>a claim of a breach of fiduciary duty if the act or acts constituting the claimed breach were <br/>
<a id="pl.117.11"></a><var>117.11</var>not undertaken in good faith. The public employees police and fire retirement plan may <br/>
<a id="pl.117.12"></a><var>117.12</var>assert any applicable defense to any claim in any judicial or administrative proceeding that <br/>
<a id="pl.117.13"></a><var>117.13</var>the applicable Minneapolis relief association, its board, or its administrative staff would <br/>
<a id="pl.117.14"></a><var>117.14</var>otherwise have been entitled to assert, and the public employees police and fire retirement <br/>
<a id="pl.117.15"></a><var>117.15</var>plan may assert any applicable defense that it has in its capacity as a statewide agency.<br/>
<a id="pl.117.16"></a><var>117.16</var>(d) Indemnification. The Public Employees Retirement Association shall indemnify <br/>
<a id="pl.117.17"></a><var>117.17</var>any former fiduciary of the Minneapolis relief associations consistent with the provisions <br/>
<a id="pl.117.18"></a><var>117.18</var>of section 356A.11. The indemnification may be effected by the purchase by the Public <br/>
<a id="pl.117.19"></a><var>117.19</var>Employees Retirement Association of reasonable fiduciary liability tail insurance for the <br/>
<a id="pl.117.20"></a><var>117.20</var>officers and directors of the former Minneapolis relief association.<br/>
<br/>
<a id="bill.5.58.0"></a><a id="pl.117.21"></a><var>117.21</var>    Sec. 58. Minnesota Statutes 2012, section 353.665, subdivision 8, is amended to read:<br/>
<a id="pl.117.22"></a><var>117.22</var>    Subd. 8. <b>Member and employer contributions.</b> (a) Effective on the first day of the <br/>
<a id="pl.117.23"></a><var>117.23</var>first full pay period following June 30, 1999, Except as provided in paragraph (b), (c), <br/>
<a id="pl.117.24"></a><var>117.24</var>or (d), the employee contribution rate for merging merged former consolidation account <br/>
<a id="pl.117.25"></a><var>117.25</var>active members is the rate specified in section 
         <statute_ref>353.65, subdivision 2</statute_ref>, and the regular <br/>
<a id="pl.117.26"></a><var>117.26</var>municipal contribution rate on behalf of merged former consolidation account active <br/>
<a id="pl.117.27"></a><var>117.27</var>members is the rate specified in section 
         <statute_ref>353.65, subdivision 3</statute_ref>.<br/>
<a id="pl.117.28"></a><var>117.28</var>(b) The municipality associated with a merging former local consolidation account <br/>
<a id="pl.117.29"></a><var>117.29</var>that had a positive value amortizable base calculation under subdivision 7, paragraph (d), <br/>
<a id="pl.117.30"></a><var>117.30</var>after the preliminary calculation or the second calculation, whichever applies, must make <br/>
<a id="pl.117.31"></a><var>117.31</var>an additional municipal contribution to the public employees police and fire plan for <br/>
<a id="pl.117.32"></a><var>117.32</var>the period from January 1, 2000, to December 31, 2009. The amount of the additional <br/>
<a id="pl.117.33"></a><var>117.33</var>municipal contribution is the amount calculated by the actuary retained under section <br/>
<a id="pl.117.34"></a><var>117.34</var><statute_ref>356.214</statute_ref> and certified by the executive director of the Public Employees Retirement <br/>
<a id="pl.117.35"></a><var>117.35</var>Association by which the amortizable base amount would be amortized on a level dollar <br/>
<a id="pl.118.1"></a><var>118.1</var>annual end-of-the-year contribution basis, using an 8.5 percent interest rate assumption. <br/>
<a id="pl.118.2"></a><var>118.2</var>The additional municipal contribution is payable during the month of January, is without <br/>
<a id="pl.118.3"></a><var>118.3</var>any interest, or if made after January 31, but before the next following December 31, <br/>
<a id="pl.118.4"></a><var>118.4</var>is payable with interest for the period since January 1 at a rate which is equal to the <br/>
<a id="pl.118.5"></a><var>118.5</var>preretirement interest rate assumption specified in section 
<statute_ref>356.215, subdivision 8</statute_ref>, <br/>
<a id="pl.118.6"></a><var>118.6</var>applicable to the public employees police and fire fund expressed as a monthly rate and <br/>
<a id="pl.118.7"></a><var>118.7</var>compounded on a monthly basis or if made after December 31 of the year in which the <br/>
<a id="pl.118.8"></a><var>118.8</var>additional municipal contribution is due is payable with interest at a rate which is four <br/>
<a id="pl.118.9"></a><var>118.9</var>percent greater than the highest interest rate assumption specified in section 
<statute_ref>356.215, <br/>
<a id="pl.118.10"></a><var>118.10</var>subdivision 8
</statute_ref>, expressed as a monthly rate and compounded monthly from January 1 of the <br/>
<a id="pl.118.11"></a><var>118.11</var>year in which the additional municipal contribution is due until the date on which payment <br/>
<a id="pl.118.12"></a><var>118.12</var>is made. With respect to active members of the merged former Minneapolis Firefighters <br/>
<a id="pl.118.13"></a><var>118.13</var>Relief Association and the merged former Minneapolis Police Relief Association, there are <br/>
<a id="pl.118.14"></a><var>118.14</var>no employee contributions payable and the employer contribution on behalf of those active <br/>
<a id="pl.118.15"></a><var>118.15</var>members is at the rate specified in section 353.65, subdivision 3, applied to the active <br/>
<a id="pl.118.16"></a><var>118.16</var>member's salary. In addition, an additional municipal contribution is payable by the city of <br/>
<a id="pl.118.17"></a><var>118.17</var>Minneapolis annually on July 15, set at the amount calculated as of December 30, 2011, as <br/>
<a id="pl.118.18"></a><var>118.18</var>sufficient to amortize, on a level annual dollar basis by December 31, 2031, the unfunded <br/>
<a id="pl.118.19"></a><var>118.19</var>present value figure calculated as required by Minnesota Statutes 2012, section 353.667, <br/>
<a id="pl.118.20"></a><var>118.20</var>subdivision 6, paragraph (a), and Minnesota Statutes 2012, section 353.668, subdivision <br/>
<a id="pl.118.21"></a><var>118.21</var>6, paragraph (a). If the postretirement or preretirement interest rate actuarial assumption <br/>
<a id="pl.118.22"></a><var>118.22</var>applicable  to the public employees police and fire retirement plan under section 356.215, <br/>
<a id="pl.118.23"></a><var>118.23</var>subdivision  8, is modified from the rates specified in Minnesota Statutes 2010, section <br/>
<a id="pl.118.24"></a><var>118.24</var>356.215, subdivision 8, the remainder present value of future benefits amount calculation <br/>
<a id="pl.118.25"></a><var>118.25</var>under Minnesota Statutes 2012, section 353.667, subdivision 6, and Minnesota Statutes <br/>
<a id="pl.118.26"></a><var>118.26</var>2012, section 353.668, subdivision 6, paragraph (a), updated for the passage of time, must <br/>
<a id="pl.118.27"></a><var>118.27</var>be revised and the amortization contribution by the city of Minneapolis for the balance <br/>
<a id="pl.118.28"></a><var>118.28</var>of the amortization period must be redetermined by the actuary retained under section <br/>
<a id="pl.118.29"></a><var>118.29</var>356.214 and certified by the executive director to the city of Minneapolis.<br/>
<a id="pl.118.30"></a><var>118.30</var>(c) If there are assets of the former Fairmont Police Relief Association in excess of <br/>
<a id="pl.118.31"></a><var>118.31</var>the present value of future benefits as of June 29, 2012, these assets must be credited to an <br/>
<a id="pl.118.32"></a><var>118.32</var>interest-bearing suspense account within the public employees police and fire retirement <br/>
<a id="pl.118.33"></a><var>118.33</var>fund, must be used to offset any amount payable under paragraph (a) until June 30, 2015, <br/>
<a id="pl.118.34"></a><var>118.34</var>and, after June 30, 2015, must be paid to the city of Fairmont. The suspense account must <br/>
<a id="pl.118.35"></a><var>118.35</var>be credited with the same rate of investment return as the public employees police and fire <br/>
<a id="pl.118.36"></a><var>118.36</var>retirement fund. If, after June 29, 2012, the postretirement or preretirement interest rate <br/>
<a id="pl.119.1"></a><var>119.1</var>actuarial assumption applicable to the public employees police and fire retirement plan <br/>
<a id="pl.119.2"></a><var>119.2</var>under section 356.215, subdivision 8, is modified from the rates specified in Minnesota <br/>
<a id="pl.119.3"></a><var>119.3</var>Statutes 2010, section 356.215, subdivision 8, the remainder present value of future <br/>
<a id="pl.119.4"></a><var>119.4</var>benefits amount calculation under paragraph (a), updated for the passage of time, must be <br/>
<a id="pl.119.5"></a><var>119.5</var>revised and the amortization contribution by the city of Fairmont for the balance of the <br/>
<a id="pl.119.6"></a><var>119.6</var>amortization period must be redetermined by the actuary retained under section 356.214 <br/>
<a id="pl.119.7"></a><var>119.7</var>and certified by the executive director to the city of Fairmont.<br/>
<a id="pl.119.8"></a><var>119.8</var>(d) If there was a remainder present value of future benefits amounts under <br/>
<a id="pl.119.9"></a><var>119.9</var>Minnesota Statutes 2012, section 353.6691, subdivision 5, paragraph (a), the city of <br/>
<a id="pl.119.10"></a><var>119.10</var>Virginia shall pay an additional municipal contribution annually on or before December <br/>
<a id="pl.119.11"></a><var>119.11</var>31 sufficient to amortize on a level annual dollar basis by December 31, 2020, that <br/>
<a id="pl.119.12"></a><var>119.12</var>remainder present value of future benefits amounts of the former Virginia fire department <br/>
<a id="pl.119.13"></a><var>119.13</var>consolidation account. If, after June 29, 2012, the postretirement or preretirement interest <br/>
<a id="pl.119.14"></a><var>119.14</var>rate actuarial assumption applicable to the public employees police and fire retirement plan <br/>
<a id="pl.119.15"></a><var>119.15</var>under section 356.215, subdivision 8, is modified from the rates specified in Minnesota <br/>
<a id="pl.119.16"></a><var>119.16</var>Statutes 2010, section 356.215, subdivision 8, the remainder present value of future <br/>
<a id="pl.119.17"></a><var>119.17</var>benefits amount calculation under paragraph (a), updated for the passage of time, must be <br/>
<a id="pl.119.18"></a><var>119.18</var>revised and any amortization contribution by the city of Virginia for the balance of the <br/>
<a id="pl.119.19"></a><var>119.19</var>amortization period must be redetermined by the actuary retained under section 356.214 <br/>
<a id="pl.119.20"></a><var>119.20</var>and certified by the executive director to the city of Virginia.<br/>
<br/>
<a id="bill.5.59.0"></a><a id="pl.119.21"></a><var>119.21</var>    Sec. 59. Minnesota Statutes 2012, section 353.71, subdivision 1, is amended to read:<br/>
<a id="pl.119.22"></a><var>119.22</var>    Subdivision 1. <b>Eligibility.</b> Any person who has been a member of a defined <br/>
<a id="pl.119.23"></a><var>119.23</var>benefit retirement plan administered by the Public Employees Retirement Association, <br/>
<a id="pl.119.24"></a><var>119.24</var>or a retirement plan administered by the Minnesota State Retirement System, or the <br/>
<a id="pl.119.25"></a><var>119.25</var>Teachers Retirement Association, or any other public retirement system in the state of <br/>
<a id="pl.119.26"></a><var>119.26</var>Minnesota having a like provision, except a retirement plan providing benefits for police <br/>
<a id="pl.119.27"></a><var>119.27</var>officers 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>, or by sections 31 <br/>
<a id="pl.119.28"></a><var>119.28</var>to 42, is entitled, when qualified, to an annuity from each retirement plan if the total <br/>
<a id="pl.119.29"></a><var>119.29</var>allowable service in all retirement plans or in any two of these retirement plans totals the <br/>
<a id="pl.119.30"></a><var>119.30</var>number of years of allowable service required to receive a normal retirement annuity for <br/>
<a id="pl.119.31"></a><var>119.31</var>that retirement plan, provided that no portion of the allowable service upon which the <br/>
<a id="pl.119.32"></a><var>119.32</var>retirement annuity from one retirement plan is based is again used in the computation for <br/>
<a id="pl.119.33"></a><var>119.33</var>benefits from another retirement plan and provided further that the person has not taken a <br/>
<a id="pl.119.34"></a><var>119.34</var>refund from any one of these retirement plans since the person's membership in that <br/>
<a id="pl.119.35"></a><var>119.35</var>association or system last terminated. The annuity from each fund must be determined by <br/>
<a id="pl.120.1"></a><var>120.1</var>the appropriate provisions of the law except that the requirement that a person must have <br/>
<a id="pl.120.2"></a><var>120.2</var>at least a specific minimum period of allowable service in the respective association or <br/>
<a id="pl.120.3"></a><var>120.3</var>system does not apply for the purposes of this section if the combined service in two or <br/>
<a id="pl.120.4"></a><var>120.4</var>more of these retirement plans equals the number of years of allowable service required to <br/>
<a id="pl.120.5"></a><var>120.5</var>receive a normal retirement annuity for that retirement plan.<br/>
<br/>
<a id="bill.5.60.0"></a><a id="pl.120.6"></a><var>120.6</var>    Sec. 60. Minnesota Statutes 2012, section 356.20, subdivision 2, is amended to read:<br/>
<a id="pl.120.7"></a><var>120.7</var>    Subd. 2. <b>Covered public pension plans and funds.</b> This section applies to the <br/>
<a id="pl.120.8"></a><var>120.8</var>following public pension plans:<br/>
<a id="pl.120.9"></a><var>120.9</var>    (1) the general state employees retirement plan of the Minnesota State Retirement <br/>
<a id="pl.120.10"></a><var>120.10</var>System;<br/>
<a id="pl.120.11"></a><var>120.11</var>    (2) the general employees retirement plan of the Public Employees Retirement <br/>
<a id="pl.120.12"></a><var>120.12</var>Association;<br/>
<a id="pl.120.13"></a><var>120.13</var>    (3) the Teachers Retirement Association;<br/>
<a id="pl.120.14"></a><var>120.14</var>    (4) the State Patrol retirement plan;<br/>
<a id="pl.120.15"></a><var>120.15</var>    (5) the St. Paul Teachers Retirement Fund Association;<br/>
<a id="pl.120.16"></a><var>120.16</var>    (6) the Duluth Teachers Retirement Fund Association;<br/>
<a id="pl.120.17"></a><var>120.17</var>    (7) the University of Minnesota faculty retirement plan;<br/>
<a id="pl.120.18"></a><var>120.18</var>    (8) the University of Minnesota faculty supplemental retirement plan;<br/>
<a id="pl.120.19"></a><var>120.19</var>    (9) the judges retirement fund;<br/>
<a id="pl.120.20"></a><var>120.20</var>    (10) a police or firefighter's relief association specified or described in section 
<statute_ref>69.77, <br/>
<a id="pl.120.21"></a><var>120.21</var>subdivision 1a
</statute_ref> the Bloomington Fire Department Relief Association;<br/>
<a id="pl.120.22"></a><var>120.22</var>    (11) a volunteer firefighter relief association governed by section 
         <statute_ref>69.771, subdivision <br/>
<a id="pl.120.23"></a><var>120.23</var>1
         </statute_ref>;<br/>
<a id="pl.120.24"></a><var>120.24</var>    (12) the public employees police and fire plan of the Public Employees Retirement <br/>
<a id="pl.120.25"></a><var>120.25</var>Association;<br/>
<a id="pl.120.26"></a><var>120.26</var>    (13) the correctional state employees retirement plan of the Minnesota State <br/>
<a id="pl.120.27"></a><var>120.27</var>Retirement System;<br/>
<a id="pl.120.28"></a><var>120.28</var>    (14) the local government correctional service retirement plan of the Public <br/>
<a id="pl.120.29"></a><var>120.29</var>Employees Retirement Association; and<br/>
<a id="pl.120.30"></a><var>120.30</var>(15) the voluntary statewide lump-sum volunteer firefighter retirement plan.<br/>
<br/>
<a id="bill.5.61.0"></a><a id="pl.120.31"></a><var>120.31</var>    Sec. 61. Minnesota Statutes 2012, section 356.215, subdivision 18, is amended to read:<br/>
<a id="pl.120.32"></a><var>120.32</var>    Subd. 18. <b>Establishment of actuarial assumptions.</b> (a) Before July 2, 2010, the <br/>
<a id="pl.120.33"></a><var>120.33</var>actuarial assumptions used for the preparation of actuarial valuations under this section <br/>
<a id="pl.120.34"></a><var>120.34</var>that are other than preretirement interest, postretirement interest, salary increase, and <br/>
<a id="pl.121.1"></a><var>121.1</var>payroll increase may be changed only with the approval of the Legislative Commission on <br/>
<a id="pl.121.2"></a><var>121.2</var>Pensions and Retirement or after a period of one year has elapsed since the date on which <br/>
<a id="pl.121.3"></a><var>121.3</var>the proposed assumption change or changes were received by the Legislative Commission <br/>
<a id="pl.121.4"></a><var>121.4</var>on Pensions and Retirement without commission action.<br/>
<a id="pl.121.5"></a><var>121.5</var>    (b) After July 1, 2010, the actuarial assumptions used for the preparation of actuarial <br/>
<a id="pl.121.6"></a><var>121.6</var>valuations under this section that are other than postretirement interest and preretirement <br/>
<a id="pl.121.7"></a><var>121.7</var>interest may be changed only with the approval of the Legislative Commission on <br/>
<a id="pl.121.8"></a><var>121.8</var>Pensions and Retirement or after a period of one year has elapsed since the date on which <br/>
<a id="pl.121.9"></a><var>121.9</var>the proposed assumption change or changes were received by the Legislative Commission <br/>
<a id="pl.121.10"></a><var>121.10</var>on Pensions and Retirement without commission action.<br/>
<a id="pl.121.11"></a><var>121.11</var>    (c) A change in the applicable actuarial assumptions may be proposed by the <br/>
<a id="pl.121.12"></a><var>121.12</var>governing board of the applicable pension fund or relief association, by the actuary <br/>
<a id="pl.121.13"></a><var>121.13</var>retained by the joint retirement systems under section 
         <statute_ref>356.214</statute_ref> or by the actuary retained <br/>
<a id="pl.121.14"></a><var>121.14</var>by a local police or firefighters relief association governed by sections 
         <statute_ref>69.77</statute_ref> or
<statute_ref>69.771</statute_ref> to <br/>
<statute_ref><a id="pl.121.15"></a><var>121.15</var>69.776
         </statute_ref> or by sections 31 to 42, if one is retained.<br/>
<br/>
<a id="bill.5.62.0"></a><a id="pl.121.16"></a><var>121.16</var>    Sec. 62. Minnesota Statutes 2012, section 356.216, is amended to read:<br/>
<a id="pl.121.17"></a><var>121.17</var><b>356.216 CONTENTS OF ACTUARIAL VALUATIONS FOR LOCAL </b><br/>
<a id="pl.121.18"></a><var>121.18</var><b>POLICE AND FIRE FUNDS</b><b> MONTHLY VOLUNTEER FIREFIGHTER RELIEF </b><br/>
<a id="pl.121.19"></a><var>121.19</var><b>ASSOCIATIONS</b><b>.</b><br/>
<a id="pl.121.20"></a><var>121.20</var>The provisions of section 
         <statute_ref>356.215</statute_ref> that govern the contents of actuarial valuations <br/>
<a id="pl.121.21"></a><var>121.21</var>must apply to the Bloomington Fire Department Relief Association and to any local police <br/>
<a id="pl.121.22"></a><var>121.22</var>or fire pension fund or monthly volunteer firefighter relief association required to make <br/>
<a id="pl.121.23"></a><var>121.23</var>an actuarial report under this section, except as follows:<br/>
<a id="pl.121.24"></a><var>121.24</var>(1) in calculating normal cost and other requirements, if required to be expressed as <br/>
<a id="pl.121.25"></a><var>121.25</var>a level percentage of covered payroll, the salaries used in computing covered payroll must <br/>
<a id="pl.121.26"></a><var>121.26</var>be the maximum rate of salary on which retirement and survivorship credits and amounts <br/>
<a id="pl.121.27"></a><var>121.27</var>of benefits are determined and from which any member contributions are calculated and <br/>
<a id="pl.121.28"></a><var>121.28</var>deducted;<br/>
<a id="pl.121.29"></a><var>121.29</var>(2) (1) in lieu of the amortization date specified in section 
         <statute_ref>356.215, subdivision <br/>
<a id="pl.121.30"></a><var>121.30</var>11
         </statute_ref>, the appropriate amortization target date specified in clause (2) or section 
         <statute_ref>69.77, <br/>
<a id="pl.121.31"></a><var>121.31</var>subdivision 4
</statute_ref>, or
<statute_ref>69.773, subdivision 4</statute_ref>, clause paragraph (c), must be used in calculating <br/>
<a id="pl.121.32"></a><var>121.32</var>any required amortization contribution, except that if the actuarial report;<br/>
<a id="pl.121.33"></a><var>121.33</var>(2) for the Bloomington Fire Department Relief Association indicates an, any<br/>
<a id="pl.121.34"></a><var>121.34</var> unfunded actuarial accrued liability, the unfunded obligation is to must be amortized on <br/>
<a id="pl.121.35"></a><var>121.35</var>a level dollar basis by December 31 of the year occurring 20 years later after the year <br/>
<a id="pl.122.1"></a><var>122.1</var>in which the unfunded actuarial accrued liability initially occurred, and, if subsequent <br/>
<a id="pl.122.2"></a><var>122.2</var>actuarial valuations for the Bloomington Fire Department Relief Association determine<br/>
<a id="pl.122.3"></a><var>122.3</var> indicate a net actuarial experience loss incurred during the year which ended as of the day <br/>
<a id="pl.122.4"></a><var>122.4</var>before the most recent actuarial valuation date, any unfunded actuarial accrued liability <br/>
<a id="pl.122.5"></a><var>122.5</var>due to that loss is to be amortized on a level dollar basis by December 31 of the year <br/>
<a id="pl.122.6"></a><var>122.6</var>occurring 20 years later after the year in which the net actuarial experience loss occurred;<br/>
<a id="pl.122.7"></a><var>122.7</var>(3) in addition to the tabulation of active members and annuitants provided for in <br/>
<a id="pl.122.8"></a><var>122.8</var>section 
         <statute_ref>356.215, subdivision 13</statute_ref>, the member contributions for active members for the <br/>
<a id="pl.122.9"></a><var>122.9</var>calendar year and the prospective annual retirement annuities service pensions under the <br/>
<a id="pl.122.10"></a><var>122.10</var>benefit plan for active members must be reported;<br/>
<a id="pl.122.11"></a><var>122.11</var>(4) actuarial valuations required under section 39 must be made annually and <br/>
<a id="pl.122.12"></a><var>122.12</var>actuarial valuations required under section 
<statute_ref>69.773, subdivision 2</statute_ref>, must be made at least<br/>
<a id="pl.122.13"></a><var>122.13</var> every four years and actuarial valuations required under section 
<statute_ref>69.77</statute_ref> shall be made <br/>
<a id="pl.122.14"></a><var>122.14</var>annually or as frequently as required by generally accepted accounting principles in the <br/>
<a id="pl.122.15"></a><var>122.15</var>government sector, whichever frequency requirement is shorter;<br/>
<a id="pl.122.16"></a><var>122.16</var>(5) the actuarial balance sheet showing accrued assets valued at market value if the <br/>
<a id="pl.122.17"></a><var>122.17</var>actuarial valuation is required to be prepared at least every four years or valued as current <br/>
<a id="pl.122.18"></a><var>122.18</var>assets under section 
<statute_ref>356.215, subdivision 1</statute_ref>, paragraph (b) or (f), whichever applies, if the <br/>
<a id="pl.122.19"></a><var>122.19</var>actuarial valuation is required to be prepared annually, actuarial accrued liabilities, and the <br/>
<a id="pl.122.20"></a><var>122.20</var>unfunded actuarial accrued liability must include the following required reserves:<br/>
<a id="pl.122.21"></a><var>122.21</var>(i) for active members:<br/>
<a id="pl.122.22"></a><var>122.22</var>1. (A) retirement benefits or service pensions;<br/>
<a id="pl.122.23"></a><var>122.23</var>2. (B) disability benefits; and<br/>
<a id="pl.122.24"></a><var>122.24</var>3. refund liability due to death or withdrawal;<br/>
<a id="pl.122.25"></a><var>122.25</var>4. (C) survivors' benefits;<br/>
<a id="pl.122.26"></a><var>122.26</var>(ii) for deferred annuitants' benefits;<br/>
<a id="pl.122.27"></a><var>122.27</var>(iii) for former members without vested rights;<br/>
<a id="pl.122.28"></a><var>122.28</var>(iv) for annuitants;:<br/>
<a id="pl.122.29"></a><var>122.29</var>1. (A) retirement annuities or service pensions;<br/>
<a id="pl.122.30"></a><var>122.30</var>2. (B) disability annuities; and<br/>
<a id="pl.122.31"></a><var>122.31</var>3. surviving spouses' annuities;<br/>
<a id="pl.122.32"></a><var>122.32</var>4. surviving children's annuities; (C) survivor benefits.<br/>
<a id="pl.122.33"></a><var>122.33</var>In addition to those required reserves, separate items must be shown for additional <br/>
<a id="pl.122.34"></a><var>122.34</var>benefits, if any, which may not be appropriately included in the reserves listed above; and<br/>
<a id="pl.122.35"></a><var>122.35</var>(6) actuarial valuations are due to be filed with the state auditor by the first day of <br/>
<a id="pl.122.36"></a><var>122.36</var>the seventh month after the end of the fiscal year which the actuarial valuation covers.<br/>
<br/>
<a id="bill.5.63.0"></a><a id="pl.123.1"></a><var>123.1</var>    Sec. 63. Minnesota Statutes 2012, section 356.219, subdivision 1, is amended to read:<br/>
<a id="pl.123.2"></a><var>123.2</var>    Subdivision 1. <b>Report required.</b> (a) The State Board of Investment, on behalf <br/>
<a id="pl.123.3"></a><var>123.3</var>of the public pension funds and programs for which it is the investment authority, and <br/>
<a id="pl.123.4"></a><var>123.4</var>any Minnesota public pension plan that is not fully invested through the State Board of <br/>
<a id="pl.123.5"></a><var>123.5</var>Investment, including the Bloomington Fire Department Relief Association and a local <br/>
<a id="pl.123.6"></a><var>123.6</var>police or volunteer firefighters relief association governed by sections 
         <statute_ref>69.77</statute_ref> or
<statute_ref>69.771</statute_ref> to <br/>
<statute_ref><a id="pl.123.7"></a><var>123.7</var>69.775
         </statute_ref>, shall report the information specified in subdivision 3 to the state auditor. The <br/>
<a id="pl.123.8"></a><var>123.8</var>state auditor may prescribe a form or forms for the purposes of the reporting requirements <br/>
<a id="pl.123.9"></a><var>123.9</var>contained in this section.<br/>
<a id="pl.123.10"></a><var>123.10</var>(b) The Bloomington Fire Department Relief Association and a local police or<br/>
<a id="pl.123.11"></a><var>123.11</var> volunteer firefighters relief association governed by section 
<statute_ref>69.77</statute_ref> or sections 
         <statute_ref>69.771</statute_ref> to <br/>
<statute_ref><a id="pl.123.12"></a><var>123.12</var>69.775
         </statute_ref> is fully invested during a given calendar year for purposes of this section if all <br/>
<a id="pl.123.13"></a><var>123.13</var>assets of the applicable pension plan beyond sufficient cash equivalent investments to <br/>
<a id="pl.123.14"></a><var>123.14</var>cover six months expected expenses are invested under section 
         <statute_ref>11A.17</statute_ref>. The board of any <br/>
<a id="pl.123.15"></a><var>123.15</var>fully invested public pension plan remains responsible for submitting investment policy <br/>
<a id="pl.123.16"></a><var>123.16</var>statements and subsequent revisions as required by subdivision 3, paragraph (a).<br/>
<a id="pl.123.17"></a><var>123.17</var>(c) For purposes of this section, the State Board of Investment is considered to be <br/>
<a id="pl.123.18"></a><var>123.18</var>the investment authority for any Minnesota public pension fund required to be invested by <br/>
<a id="pl.123.19"></a><var>123.19</var>the State Board of Investment under section 
         <statute_ref>11A.23</statute_ref>, or for any Minnesota public pension <br/>
<a id="pl.123.20"></a><var>123.20</var>fund authorized to invest in the supplemental investment fund under section 
         <statute_ref>11A.17</statute_ref> and <br/>
<a id="pl.123.21"></a><var>123.21</var>which is fully invested by the State Board of Investment.<br/>
<a id="pl.123.22"></a><var>123.22</var>(d) This section does not apply to the following plans:<br/>
<a id="pl.123.23"></a><var>123.23</var>(1) the Minnesota unclassified employees retirement program under chapter 352D;<br/>
<a id="pl.123.24"></a><var>123.24</var>(2) the public employees defined contribution plan under chapter 353D;<br/>
<a id="pl.123.25"></a><var>123.25</var>(3) the individual retirement account plans under chapters 354B and 354D;<br/>
<a id="pl.123.26"></a><var>123.26</var>(4) the higher education supplemental retirement plan under chapter 354C;<br/>
<a id="pl.123.27"></a><var>123.27</var>(5) any alternative retirement benefit plan established under section 
         <statute_ref>383B.914</statute_ref>; and<br/>
<a id="pl.123.28"></a><var>123.28</var>(6) the University of Minnesota faculty retirement plan.<br/>
<br/>
<a id="bill.5.64.0"></a><a id="pl.123.29"></a><var>123.29</var>    Sec. 64. Minnesota Statutes 2012, section 356.219, subdivision 2, is amended to read:<br/>
<a id="pl.123.30"></a><var>123.30</var>    Subd. 2. <b>Asset class definition.</b> (a) For purposes of this section, "asset class" <br/>
<a id="pl.123.31"></a><var>123.31</var>means any of the following asset groupings as authorized in applicable law, bylaws, or <br/>
<a id="pl.123.32"></a><var>123.32</var>articles of incorporation:<br/>
<a id="pl.123.33"></a><var>123.33</var>(1) cash and any cash equivalent investments with maturities of one year or less <br/>
<a id="pl.123.34"></a><var>123.34</var>when issued;<br/>
<a id="pl.124.1"></a><var>124.1</var>(2) debt securities with maturities greater than one year when issued, including <br/>
<a id="pl.124.2"></a><var>124.2</var>but not limited to mortgage participation certificates and pools, asset backed securities, <br/>
<a id="pl.124.3"></a><var>124.3</var>guaranteed investment contracts, and authorized government and corporate obligations of <br/>
<a id="pl.124.4"></a><var>124.4</var>corporations organized under laws of the United States or any state, or the Dominion of <br/>
<a id="pl.124.5"></a><var>124.5</var>Canada or its provinces;<br/>
<a id="pl.124.6"></a><var>124.6</var>(3) stocks or convertible issues of any corporation organized under laws of the <br/>
<a id="pl.124.7"></a><var>124.7</var>United States or any state, or the Dominion of Canada or its provinces, or any corporation <br/>
<a id="pl.124.8"></a><var>124.8</var>listed on the New York Stock Exchange or the American Stock Exchange;<br/>
<a id="pl.124.9"></a><var>124.9</var>(4) international stocks or convertible issues;<br/>
<a id="pl.124.10"></a><var>124.10</var>(5) international debt securities; and<br/>
<a id="pl.124.11"></a><var>124.11</var>(6) real estate and venture capital.<br/>
<a id="pl.124.12"></a><var>124.12</var>(b) If the pension plan is investing under section 
<statute_ref>69.77, subdivision 9</statute_ref>, section 
<statute_ref>69.775</statute_ref>, <br/>
<a id="pl.124.13"></a><var>124.13</var>or any other applicable law, in open-end investment companies registered under the <br/>
<a id="pl.124.14"></a><var>124.14</var>federal Investment Company Act of 1940, or in the Minnesota supplemental investment <br/>
<a id="pl.124.15"></a><var>124.15</var>fund under section 
         <statute_ref>11A.17</statute_ref>, this investment must be included under an asset class indicated <br/>
<a id="pl.124.16"></a><var>124.16</var>in paragraph (a), clauses (1) through (6), as appropriate. If the investment vehicle includes <br/>
<a id="pl.124.17"></a><var>124.17</var>underlying securities from more than one asset class as indicated by paragraph (a), clauses <br/>
<a id="pl.124.18"></a><var>124.18</var>(1) through (6), the investment may be treated as a separate asset class.<br/>
<br/>
<a id="bill.5.65.0"></a><a id="pl.124.19"></a><var>124.19</var>    Sec. 65. Minnesota Statutes 2012, section 356.219, subdivision 8, is amended to read:<br/>
<a id="pl.124.20"></a><var>124.20</var>    Subd. 8. <b>Timing of reports.</b> (a) For salaried firefighter relief associations, police<br/>
<a id="pl.124.21"></a><var>124.21</var> the Bloomington Fire Department  Relief associations, Association and the volunteer <br/>
<a id="pl.124.22"></a><var>124.22</var>firefighter relief associations, the information required under this section must be <br/>
<a id="pl.124.23"></a><var>124.23</var>submitted by the due date for reports required under section 
         <statute_ref>69.051, subdivision 1</statute_ref> or 1a, <br/>
<a id="pl.124.24"></a><var>124.24</var>as applicable. If a relief association satisfies the definition of a fully invested plan under <br/>
<a id="pl.124.25"></a><var>124.25</var>subdivision 1, paragraph (b), for the calendar year covered by the report required under <br/>
<a id="pl.124.26"></a><var>124.26</var>section 
         <statute_ref>69.051, subdivision 1</statute_ref> or 1a, as applicable, the chief administrative officer of <br/>
<a id="pl.124.27"></a><var>124.27</var>the covered pension plan shall certify that compliance on a form prescribed by the state <br/>
<a id="pl.124.28"></a><var>124.28</var>auditor. The state auditor shall transmit annually to the State Board of Investment a list or <br/>
<a id="pl.124.29"></a><var>124.29</var>lists of covered pension plans which submitted certifications in order to facilitate reporting <br/>
<a id="pl.124.30"></a><var>124.30</var>by the State Board of Investment under paragraph (c).<br/>
<a id="pl.124.31"></a><var>124.31</var>(b) For the St. Paul Teachers Retirement Fund Association, the Duluth Teachers <br/>
<a id="pl.124.32"></a><var>124.32</var>Retirement Fund Association, and the University of Minnesota faculty supplemental <br/>
<a id="pl.124.33"></a><var>124.33</var>retirement plan, the information required under this section must be submitted to the state <br/>
<a id="pl.124.34"></a><var>124.34</var>auditor by June 1 of each year.<br/>
<a id="pl.125.1"></a><var>125.1</var>(c) The State Board of Investment, on behalf of pension funds specified in <br/>
<a id="pl.125.2"></a><var>125.2</var>subdivision 1, paragraph (c), must report information required under this section by <br/>
<a id="pl.125.3"></a><var>125.3</var>September 1 of each year.<br/>
<br/>
<a id="bill.5.66.0"></a><a id="pl.125.4"></a><var>125.4</var>    Sec. 66. Minnesota Statutes 2012, section 356.406, subdivision 1, is amended to read:<br/>
<a id="pl.125.5"></a><var>125.5</var>    Subdivision 1. <b>Definitions.</b> (a) Each of the words or terms defined in this <br/>
<a id="pl.125.6"></a><var>125.6</var>subdivision has the meaning indicated.<br/>
<a id="pl.125.7"></a><var>125.7</var>(b) "Public pension plan" means any retirement plan or fund enumerated in section <br/>
<statute_ref><a id="pl.125.8"></a><var>125.8</var>356.20, subdivision 2
         </statute_ref>, or 
         <statute_ref>356.30, subdivision 3</statute_ref>, the Bloomington Fire Department Relief <br/>
<a id="pl.125.9"></a><var>125.9</var>Association, any relief association governed by section 
<statute_ref>69.77</statute_ref> or sections 
         <statute_ref>69.771</statute_ref> to <br/>
<statute_ref><a id="pl.125.10"></a><var>125.10</var>69.775
         </statute_ref>, any retirement plan governed by chapter 354B or 354C, the Hennepin County <br/>
<a id="pl.125.11"></a><var>125.11</var>supplemental retirement plan governed by sections 
         <statute_ref>383B.46</statute_ref> to 
         <statute_ref>383B.52</statute_ref>, or any housing <br/>
<a id="pl.125.12"></a><var>125.12</var>and redevelopment authority retirement plan.<br/>
<a id="pl.125.13"></a><var>125.13</var>(c) "Public pension plan member" means a person who is a participant covered by <br/>
<a id="pl.125.14"></a><var>125.14</var>a public pension plan; a former participant of a public pension plan who has sufficient <br/>
<a id="pl.125.15"></a><var>125.15</var>service to be entitled to receive a future retirement annuity or service pension; a recipient <br/>
<a id="pl.125.16"></a><var>125.16</var>of a retirement annuity, service pension, or disability benefit from a public pension plan; or <br/>
<a id="pl.125.17"></a><var>125.17</var>a former participant of a public pension plan who has member or employee contributions <br/>
<a id="pl.125.18"></a><var>125.18</var>to the person's credit in the public pension plan.<br/>
<a id="pl.125.19"></a><var>125.19</var>(d) "Survivor" means the surviving spouse, a former spouse, a surviving child, a <br/>
<a id="pl.125.20"></a><var>125.20</var>joint annuitant, a designated recipient of a second or remainder portion of an optional <br/>
<a id="pl.125.21"></a><var>125.21</var>annuity form, a beneficiary, or the estate of a deceased public pension plan member, as <br/>
<a id="pl.125.22"></a><var>125.22</var>those terms are commonly understood or defined in the benefit plan document of the <br/>
<a id="pl.125.23"></a><var>125.23</var>public pension plan.<br/>
<a id="pl.125.24"></a><var>125.24</var>(e) "Survivor benefit" means a surviving spouse benefit, surviving child benefit, <br/>
<a id="pl.125.25"></a><var>125.25</var>second or remainder portion of an optional annuity form, a death benefit, a funeral benefit, <br/>
<a id="pl.125.26"></a><var>125.26</var>or a refund of member or employee contributions payable on account of the death of a <br/>
<a id="pl.125.27"></a><var>125.27</var>public pension plan member as provided for in the benefit plan document of the public <br/>
<a id="pl.125.28"></a><var>125.28</var>pension plan.<br/>
<br/>
<a id="bill.5.67.0"></a><a id="pl.125.29"></a><var>125.29</var>    Sec. 67. Minnesota Statutes 2012, section 356A.01, subdivision 19, is amended to read:<br/>
<a id="pl.125.30"></a><var>125.30</var>    Subd. 19. <b>Pension fund.</b> "Pension fund" means the assets amassed and held in a <br/>
<a id="pl.125.31"></a><var>125.31</var>pension plan, other than the general fund, as reserves for present and future payment <br/>
<a id="pl.125.32"></a><var>125.32</var>of benefits and administrative expenses. For the Bloomington Fire Department Relief <br/>
<a id="pl.125.33"></a><var>125.33</var>Association or a retirement plan governed by section 
         <statute_ref>69.77</statute_ref> or by chapter 424A, the term <br/>
<a id="pl.125.34"></a><var>125.34</var>means the relief association special fund.<br/>
<br/>
<a id="bill.5.68.0"></a><a id="pl.126.1"></a><var>126.1</var>    Sec. 68. Minnesota Statutes 2012, section 356A.06, subdivision 4, is amended to read:<br/>
<a id="pl.126.2"></a><var>126.2</var>    Subd. 4. <b>Economic interest statement.</b> (a) Each member of the governing board <br/>
<a id="pl.126.3"></a><var>126.3</var>of a covered pension plan and the chief administrative officer of the plan shall file with <br/>
<a id="pl.126.4"></a><var>126.4</var>the plan a statement of economic interest.<br/>
<a id="pl.126.5"></a><var>126.5</var>(b) For a covered pension plan other than a plan specified in paragraph (c), the <br/>
<a id="pl.126.6"></a><var>126.6</var>statement must contain the information required by section 
         <statute_ref>10A.09, subdivision 5</statute_ref>, and <br/>
<a id="pl.126.7"></a><var>126.7</var>any other information that the fiduciary or the governing board of the plan determines is <br/>
<a id="pl.126.8"></a><var>126.8</var>necessary to disclose a reasonably foreseeable potential or actual conflict of interest.<br/>
<a id="pl.126.9"></a><var>126.9</var>(c) For a covered pension plan governed by sections 
         <statute_ref>69.771</statute_ref> to 
         <statute_ref>69.776</statute_ref> or a covered <br/>
<a id="pl.126.10"></a><var>126.10</var>pension plan governed by section 
<statute_ref>69.77</statute_ref> with the Bloomington Fire Department Relief <br/>
<a id="pl.126.11"></a><var>126.11</var>Association if its special fund assets are under $8,000,000, the statement must contain <br/>
<a id="pl.126.12"></a><var>126.12</var>the following:<br/>
<a id="pl.126.13"></a><var>126.13</var>(1) the person's principal occupation and principal place of business;<br/>
<a id="pl.126.14"></a><var>126.14</var>(2) whether or not the person has an ownership of or interest of ten percent or greater <br/>
<a id="pl.126.15"></a><var>126.15</var>in an investment security brokerage business, a real estate sales business, an insurance <br/>
<a id="pl.126.16"></a><var>126.16</var>agency, a bank, a savings and loan, or another financial institution; and<br/>
<a id="pl.126.17"></a><var>126.17</var>(3) any relationship or financial arrangement that can reasonably be expected to <br/>
<a id="pl.126.18"></a><var>126.18</var>give rise to a conflict of interest.<br/>
<a id="pl.126.19"></a><var>126.19</var>(d) The statement must be filed annually with the chief administrative officer of <br/>
<a id="pl.126.20"></a><var>126.20</var>the plan and be available for public inspection during regular office hours at the office <br/>
<a id="pl.126.21"></a><var>126.21</var>of the pension plan.<br/>
<a id="pl.126.22"></a><var>126.22</var>(e) A disclosure form meeting the requirements of the federal Investment Advisers <br/>
<a id="pl.126.23"></a><var>126.23</var>Act of 1940, United States Code, title 15, sections 80b-1 to 80b-21 as amended, and <br/>
<a id="pl.126.24"></a><var>126.24</var>filed with the State Board of Investment or the pension plan meets the requirements of <br/>
<a id="pl.126.25"></a><var>126.25</var>this subdivision.<br/>
<a id="pl.126.26"></a><var>126.26</var>(f) The chief administrative officer of each covered pension plan, by January 15, <br/>
<a id="pl.126.27"></a><var>126.27</var>annually, shall transmit a certified listing of all individuals who have filed statements of <br/>
<a id="pl.126.28"></a><var>126.28</var>economic interest with the plan under this subdivision during the preceding 12 months <br/>
<a id="pl.126.29"></a><var>126.29</var>and the address of the office referenced in paragraph (d) to the Campaign Finance and <br/>
<a id="pl.126.30"></a><var>126.30</var>Public Disclosure Board.<br/>
<br/>
<a id="bill.5.69.0"></a><a id="pl.126.31"></a><var>126.31</var>    Sec. 69. Minnesota Statutes 2012, section 356A.07, subdivision 2, is amended to read:<br/>
<a id="pl.126.32"></a><var>126.32</var>    Subd. 2. <b>Annual financial report.</b> A covered pension plan shall provide each <br/>
<a id="pl.126.33"></a><var>126.33</var>active plan participant and benefit recipient with a copy of the most recent annual financial <br/>
<a id="pl.126.34"></a><var>126.34</var>report required by section 
         <statute_ref>356.20</statute_ref> and a copy of the most recent actuarial evaluation, <br/>
<a id="pl.127.1"></a><var>127.1</var>if any, required by section 
         <statute_ref>69.77</statute_ref>,
<statute_ref>69.773</statute_ref>, 
         <statute_ref>356.215</statute_ref>, or 
         <statute_ref>356.216</statute_ref>, or by section 39, or a <br/>
<a id="pl.127.2"></a><var>127.2</var>summary of those reports.<br/>
<br/>
<a id="bill.5.70.0"></a><a id="pl.127.3"></a><var>127.3</var>    Sec. 70. Minnesota Statutes 2012, section 423A.02, subdivision 1, is amended to read:<br/>
<a id="pl.127.4"></a><var>127.4</var>    Subdivision 1. <b>Amortization state aid.</b> (a) A municipality in which is located a local <br/>
<a id="pl.127.5"></a><var>127.5</var>police or salaried firefighters relief association to which the provisions of section 
<statute_ref>69.77</statute_ref>, <br/>
<a id="pl.127.6"></a><var>127.6</var>apply, that had an unfunded actuarial accrued liability in the most recent relief association <br/>
<a id="pl.127.7"></a><var>127.7</var>actuarial valuation, is entitled, upon application as required by the commissioner of <br/>
<a id="pl.127.8"></a><var>127.8</var>revenue, to receive local police and salaried firefighters' relief association amortization <br/>
<a id="pl.127.9"></a><var>127.9</var>state aid if the municipality and the appropriate relief association both comply with the <br/>
<a id="pl.127.10"></a><var>127.10</var>applicable provisions of sections 
<statute_ref>69.031, subdivision 5</statute_ref>, 
<statute_ref>69.051, subdivisions 1 and 3</statute_ref>, and <br/>
<a id="pl.127.11"></a><var>127.11</var><statute_ref>69.77</statute_ref>. The cities of Fairmont and Minneapolis are entitled, subject to subdivisions 2, 4, <br/>
<a id="pl.127.12"></a><var>127.12</var>and 5, to receive amortization state aid under this section.<br/>
<a id="pl.127.13"></a><var>127.13</var>(b) The total amount of amortization state aid to all entitled municipalities must not <br/>
<a id="pl.127.14"></a><var>127.14</var>exceed $5,055,000 the appropriation under subdivision 3a.<br/>
<a id="pl.127.15"></a><var>127.15</var>(c) Subject to the adjustment for the city of Minneapolis provided in this paragraph, <br/>
<a id="pl.127.16"></a><var>127.16</var>the amount of amortization state aid to which a municipality is entitled annually is an <br/>
<a id="pl.127.17"></a><var>127.17</var>amount equal to the level annual dollar amount required to amortize, by December 31, <br/>
<a id="pl.127.18"></a><var>127.18</var>2010, the unfunded actuarial accrued liability of the special fund of the appropriate <br/>
<a id="pl.127.19"></a><var>127.19</var>relief association as reported in the December 31, 1978, actuarial valuation of the relief <br/>
<a id="pl.127.20"></a><var>127.20</var>association prepared under sections 
<statute_ref>356.215</statute_ref> and 
<statute_ref>356.216</statute_ref>, reduced by the dollar amount <br/>
<a id="pl.127.21"></a><var>127.21</var>required to pay the interest on the unfunded actuarial accrued liability of the special fund of <br/>
<a id="pl.127.22"></a><var>127.22</var>the relief association for calendar year 1981 set at the rate specified in Minnesota Statutes <br/>
<a id="pl.127.23"></a><var>127.23</var>1978, section 
<statute_ref>356.215, subdivision 8</statute_ref>. For the city of Minneapolis, the amortization state <br/>
<a id="pl.127.24"></a><var>127.24</var>aid amount thus determined must be reduced by $747,232 on account of the former <br/>
<a id="pl.127.25"></a><var>127.25</var>Minneapolis Police Relief Association and by $772,768 on account of the former <br/>
<a id="pl.127.26"></a><var>127.26</var>Minneapolis Fire Department Relief Association. The amortization state aid amounts are:<br/>
<table>
<col width="50px"/>
<col width="5.8999999999999995"/>
<col width="12.8"/>
<col width="11.200000000000001"/>
<col width="12.4"/>
<tr>
<td><a id="pl.127.27"></a><var>127.27</var><br/>
</td>
<td></td>
<td>City<br/>
</td>
<td align="right">Aid Amount<br/>
</td>
<td align="center"></td>
</tr>
<tr>
<td><a id="pl.127.28"></a><var>127.28</var><br/>
</td>
<td></td>
<td>Fairmont<br/>
</td>
<td align="right">$24,172<br/>
</td>
<td align="right"></td>
</tr>
<tr>
<td><a id="pl.127.29"></a><var>127.29</var><br/>
</td>
<td></td>
<td>Minneapolis<br/>
</td>
<td align="right">$2,728,547<br/>
</td>
<td align="right"></td>
</tr>
</table><a id="pl.127.30"></a><var>127.30</var>If the amortization state aid amounts determined under this paragraph exceed the <br/>
<a id="pl.127.31"></a><var>127.31</var>amount appropriated for this purpose under subdivision 3a, the amortization state aid for <br/>
<a id="pl.127.32"></a><var>127.32</var>actual allocation must be reduced pro rata.<br/>
<a id="pl.127.33"></a><var>127.33</var>(d) Each municipality is eligible for an amortization state aid payment in a fiscal <br/>
<a id="pl.127.34"></a><var>127.34</var>year if:<br/>
<a id="pl.128.1"></a><var>128.1</var>(1) for Fairmont, the executive director of the Public Employees Retirement <br/>
<a id="pl.128.2"></a><var>128.2</var>Association certifies on or before June 30 that a municipal contribution with respect to the <br/>
<a id="pl.128.3"></a><var>128.3</var>former Fairmont Police Relief Association is payable in the upcoming fiscal year under <br/>
<a id="pl.128.4"></a><var>128.4</var>section 353.665, subdivision 8, paragraph (c); and<br/>
<a id="pl.128.5"></a><var>128.5</var>(2) for Minneapolis, the executive director of the Public Employees Retirement <br/>
<a id="pl.128.6"></a><var>128.6</var>Association certifies on or before June 30 that an additional employer contribution with <br/>
<a id="pl.128.7"></a><var>128.7</var>respect to either the former Minneapolis Firefighters Relief Association or the former <br/>
<a id="pl.128.8"></a><var>128.8</var>Minneapolis Police Relief Association is payable in the upcoming fiscal year under section <br/>
<a id="pl.128.9"></a><var>128.9</var>353.665, subdivision 8, paragraph (b).<br/>
<a id="pl.128.10"></a><var>128.10</var>Payment of amortization state aid to municipalities must be made directly to <br/>
<a id="pl.128.11"></a><var>128.11</var>the municipalities involved in three equal installments on July 15, September 15, and <br/>
<a id="pl.128.12"></a><var>128.12</var>November 15 annually. Upon receipt of amortization state aid, the municipal treasurer <br/>
<a id="pl.128.13"></a><var>128.13</var>shall transmit the aid amount to the treasurer custodian of the local relief association trust <br/>
<a id="pl.128.14"></a><var>128.14</var>fund or to the executive director of the public employees police and fire retirement fund, <br/>
<a id="pl.128.15"></a><var>128.15</var>whichever applies, for immediate deposit in the special fund of the relief association.<br/>
<a id="pl.128.16"></a><var>128.16</var>(e) The commissioner of revenue shall administer the amortization state aid program. <br/>
<a id="pl.128.17"></a><var>128.17</var>The commissioner shall prescribe and periodically revise, as necessary, the form for and<br/>
<a id="pl.128.18"></a><var>128.18</var> required content of the application certifications for the amortization state aid.<br/>
<a id="pl.128.19"></a><var>128.19</var>(f) The amount required under this section, as provided in subdivision 3a, is <br/>
<a id="pl.128.20"></a><var>128.20</var>appropriated annually from the general fund to the commissioner of revenue.<br/>
<br/>
<a id="bill.5.71.0"></a><a id="pl.128.21"></a><var>128.21</var>    Sec. 71. Minnesota Statutes 2012, section 423A.02, subdivision 1b, is amended to read:<br/>
<a id="pl.128.22"></a><var>128.22</var>    Subd. 1b. <b>Additional amortization state aid.</b> (a) Annually, on October 1, the <br/>
<a id="pl.128.23"></a><var>128.23</var>commissioner of revenue shall allocate the additional amortization state aid transferred <br/>
<a id="pl.128.24"></a><var>128.24</var>under section 
<statute_ref>69.021, subdivision 11</statute_ref>, to:<br/>
<a id="pl.128.25"></a><var>128.25</var>    (1) all police or salaried firefighters relief associations governed by and in full <br/>
<a id="pl.128.26"></a><var>128.26</var>compliance with the requirements of section 
<statute_ref>69.77</statute_ref>, that had an unfunded actuarial accrued <br/>
<a id="pl.128.27"></a><var>128.27</var>liability in the actuarial valuation prepared under sections 
<statute_ref>356.215</statute_ref> and 
<statute_ref>356.216</statute_ref> as of the <br/>
<a id="pl.128.28"></a><var>128.28</var>preceding December 31;<br/>
<a id="pl.128.29"></a><var>128.29</var>    (2) all local police or salaried firefighter consolidation accounts governed by chapter <br/>
<a id="pl.128.30"></a><var>128.30</var>353A that are certified by the executive director of the public employees retirement <br/>
<a id="pl.128.31"></a><var>128.31</var>association as having for the current fiscal year an additional municipal contribution <br/>
<a id="pl.128.32"></a><var>128.32</var>amount under section 
<statute_ref>353A.09, subdivision 5</statute_ref>, paragraph (b), and that have implemented <br/>
<a id="pl.128.33"></a><var>128.33</var>section 
<statute_ref>353A.083, subdivision 1</statute_ref>, if the effective date of the consolidation preceded May <br/>
<a id="pl.128.34"></a><var>128.34</var>24, 1993, and that have implemented section 
<statute_ref>353A.083, subdivision 2</statute_ref>, if the effective date <br/>
<a id="pl.128.35"></a><var>128.35</var>of the consolidation preceded June 1, 1995; and<br/>
<a id="pl.129.1"></a><var>129.1</var>    (3) the municipalities that are required to make an additional municipal contribution <br/>
<a id="pl.129.2"></a><var>129.2</var>under section 
<statute_ref>353.665, subdivision 8</statute_ref>; 
<statute_ref>353.667, subdivision 6</statute_ref>; or 
<statute_ref>353.668, subdivision <br/>
<a id="pl.129.3"></a><var>129.3</var>6
</statute_ref>, for the duration of the required additional contribution.<br/>
<a id="pl.129.4"></a><var>129.4</var>    (b) The commissioner shall allocate the state aid on the basis of the proportional share <br/>
<a id="pl.129.5"></a><var>129.5</var>of the relief association or consolidation account of the total unfunded actuarial accrued <br/>
<a id="pl.129.6"></a><var>129.6</var>liability of all recipient relief associations and consolidation accounts as of December 31, <br/>
<a id="pl.129.7"></a><var>129.7</var>1993, for relief associations, and as of June 30, 1994, for consolidation accounts.<br/>
<a id="pl.129.8"></a><var>129.8</var>    (c) (a) Beginning October 1, 2000 2013, and annually thereafter, the commissioner <br/>
<a id="pl.129.9"></a><var>129.9</var>shall allocate the additional amortization state aid, including any state aid in excess of the <br/>
<a id="pl.129.10"></a><var>129.10</var>limitation in subdivision 4, on the following basis:<br/>
<a id="pl.129.11"></a><var>129.11</var>    (1) 64.5 percent to the municipalities to which section 
<statute_ref>353.665, subdivision <br/>
<a id="pl.129.12"></a><var>129.12</var>8
</statute_ref>, paragraph (b), or 
<statute_ref>353A.09, subdivision 5</statute_ref>, paragraph (b), apply for distribution in <br/>
<a id="pl.129.13"></a><var>129.13</var>accordance with paragraph (b) and subject to the limitation in subdivision 4;<br/>
<a id="pl.129.14"></a><var>129.14</var>    (2) 34.2 (1) 47.1 percent to the city of Minneapolis to fund any unfunded actuarial <br/>
<a id="pl.129.15"></a><var>129.15</var>accrued liability in the actuarial valuation prepared under sections 
<statute_ref>356.215</statute_ref> and 
<statute_ref>356.216<br/>
</statute_ref><a id="pl.129.16"></a><var>129.16</var> as of the preceding December 31 for the Minneapolis Police Relief Association or the <br/>
<a id="pl.129.17"></a><var>129.17</var>Minneapolis Fire Department Relief Association; and defray the employer costs associated <br/>
<a id="pl.129.18"></a><var>129.18</var>with police and firefighter retirement coverage;<br/>
<a id="pl.129.19"></a><var>129.19</var>(2) 25.8 percent as additional funding to support the minimum fire state aid for <br/>
<a id="pl.129.20"></a><var>129.20</var>volunteer firefighter relief associations under section 69.021, subdivision 7, paragraph (d);<br/>
<a id="pl.129.21"></a><var>129.21</var>(3) 12.9 percent to the city of Duluth to defray employer costs associated with <br/>
<a id="pl.129.22"></a><var>129.22</var>police and firefighter retirement coverage;<br/>
<a id="pl.129.23"></a><var>129.23</var>(4) 12.9 percent to the St. Paul Teachers Retirement Fund Association if the <br/>
<a id="pl.129.24"></a><var>129.24</var>investment performance requirement of paragraph (c) is met; and <br/>
<a id="pl.129.25"></a><var>129.25</var>    (3) (5) 1.3 percent to the city of Virginia to fund any unfunded actuarial accrued <br/>
<a id="pl.129.26"></a><var>129.26</var>liability in the actuarial valuation prepared under sections 
<statute_ref>356.215</statute_ref> and 
<statute_ref>356.216</statute_ref> as of the <br/>
<a id="pl.129.27"></a><var>129.27</var>preceding December 31 for the Virginia Fire Department Relief Association defray the <br/>
<a id="pl.129.28"></a><var>129.28</var>employer contribution under section 353.665, subdivision 8, paragraph (d).<br/>
<a id="pl.129.29"></a><var>129.29</var>    If there is no unfunded actuarial accrued liability in both additional employer <br/>
<a id="pl.129.30"></a><var>129.30</var>contribution under section 353.665, subdivision 8, paragraph (b), certified under <br/>
<a id="pl.129.31"></a><var>129.31</var>subdivision 1, paragraph (d), clause (2), with respect to the former Minneapolis Police <br/>
<a id="pl.129.32"></a><var>129.32</var>Relief Association and the former Minneapolis Fire Department Relief Association as <br/>
<a id="pl.129.33"></a><var>129.33</var>disclosed in the most recent actuarial valuations for the relief associations prepared under <br/>
<a id="pl.129.34"></a><var>129.34</var>sections 
<statute_ref>356.215</statute_ref> and 
<statute_ref>356.216</statute_ref>, the commissioner shall allocate that 34.2 47.1 percent <br/>
<a id="pl.129.35"></a><var>129.35</var>of the aid as follows: 49 percent to the Teachers Retirement Association, 21 percent <br/>
<a id="pl.129.36"></a><var>129.36</var>to the St. Paul Teachers Retirement Fund Association, and 30 percent as additional <br/>
<a id="pl.130.1"></a><var>130.1</var>funding to support minimum fire state aid for volunteer firefighters relief associations. If <br/>
<a id="pl.130.2"></a><var>130.2</var>there is no unfunded actuarial accrued liability in employer contribution by the city of <br/>
<a id="pl.130.3"></a><var>130.3</var>Virginia Fire Department Relief Association as disclosed in the most recent actuarial <br/>
<a id="pl.130.4"></a><var>130.4</var>valuation for the relief association prepared under sections 
<statute_ref>356.215</statute_ref> and 
<statute_ref>356.216</statute_ref> under <br/>
<a id="pl.130.5"></a><var>130.5</var>section 353.665, subdivision 8, paragraph (d), for the former Virginia Fire Department <br/>
<a id="pl.130.6"></a><var>130.6</var>Relief Association certified on or before June 30 by the executive director of the Public <br/>
<a id="pl.130.7"></a><var>130.7</var>Employees Retirement Association, the commissioner shall allocate that 1.3 percent <br/>
<a id="pl.130.8"></a><var>130.8</var>of the aid as follows: 49 percent to the Teachers Retirement Association, 21 percent <br/>
<a id="pl.130.9"></a><var>130.9</var>to the St. Paul Teachers Retirement Fund Association, and 30 percent as additional <br/>
<a id="pl.130.10"></a><var>130.10</var>funding to support minimum fire state aid for volunteer firefighters relief associations. <br/>
<a id="pl.130.11"></a><var>130.11</var>Upon the final payment to municipalities required by section 
<statute_ref>353.665, subdivision 8</statute_ref>, <br/>
<a id="pl.130.12"></a><var>130.12</var>paragraph (b), or 
<statute_ref>353A.09, subdivision 5</statute_ref>, paragraph (b), the commissioner shall allocate <br/>
<a id="pl.130.13"></a><var>130.13</var>that 64.5 percent of the aid as follows: 20 percent to the St. Paul Teachers Retirement <br/>
<a id="pl.130.14"></a><var>130.14</var>Fund Association, 20 percent to the city of Minneapolis to fund any unfunded actuarial <br/>
<a id="pl.130.15"></a><var>130.15</var>accrued liability in the actuarial valuation proposed under sections 
<statute_ref>356.215</statute_ref> and 
<statute_ref>356.216<br/>
</statute_ref><a id="pl.130.16"></a><var>130.16</var> as of the preceding December 31 for the Minneapolis Police Relief Association or the <br/>
<a id="pl.130.17"></a><var>130.17</var>Minneapolis Firefighters Relief Association, 20 percent for the city of Duluth to pay for <br/>
<a id="pl.130.18"></a><var>130.18</var>any costs associated with the police and firefighters pensions, and 40 percent as additional <br/>
<a id="pl.130.19"></a><var>130.19</var>funding to support minimum fire state aid for volunteer firefighters relief associations.<br/>
<a id="pl.130.20"></a><var>130.20</var>    (b) The allocation must be made by the commissioner at the same time and under the <br/>
<a id="pl.130.21"></a><var>130.21</var>same procedures as specified in subdivision 3 of revenue on October 1 annually.<br/>
<a id="pl.130.22"></a><var>130.22</var>    (c) With respect to the St. Paul Teachers Retirement Fund Association, annually, <br/>
<a id="pl.130.23"></a><var>130.23</var>beginning on July 1, 2005, if the applicable teacher's association five-year average <br/>
<a id="pl.130.24"></a><var>130.24</var>time-weighted rate of investment return does not equal or exceed the performance of a <br/>
<a id="pl.130.25"></a><var>130.25</var>composite portfolio assumed passively managed (indexed) invested ten percent in cash <br/>
<a id="pl.130.26"></a><var>130.26</var>equivalents, 60 percent in bonds and similar debt securities, and 30 percent in domestic <br/>
<a id="pl.130.27"></a><var>130.27</var>stock calculated using the formula under section 
         <statute_ref>11A.04</statute_ref>, clause (11), the aid allocation <br/>
<a id="pl.130.28"></a><var>130.28</var>to that the retirement fund under this section ceases until the five-year annual rate of <br/>
<a id="pl.130.29"></a><var>130.29</var>investment return equals or exceeds the performance of that composite portfolio.<br/>
<a id="pl.130.30"></a><var>130.30</var>    (d) The amounts required under this subdivision are the amounts annually <br/>
<a id="pl.130.31"></a><var>130.31</var>appropriated to the commissioner of revenue under section 
         <statute_ref>69.021, subdivision 11</statute_ref>, <br/>
<a id="pl.130.32"></a><var>130.32</var>paragraph (e), and the aid amounts in excess of the limitation in subdivision 4.<br/>
<br/>
<a id="bill.5.72.0"></a><a id="pl.130.33"></a><var>130.33</var>    Sec. 72. Minnesota Statutes 2012, section 423A.02, subdivision 2, is amended to read:<br/>
<a id="pl.130.34"></a><var>130.34</var>    Subd. 2. <b>Continued eligibility.</b> A municipality that has qualified for amortization <br/>
<a id="pl.130.35"></a><var>130.35</var>state aid under subdivision 1 on December 31, 1984, and has an additional municipal <br/>
<a id="pl.131.1"></a><var>131.1</var>contribution payable under section 
<statute_ref>353A.09, subdivision 5</statute_ref>, paragraph (b), as of the most <br/>
<a id="pl.131.2"></a><var>131.2</var>recent December 31, continues upon application to be entitled to receive amortization <br/>
<a id="pl.131.3"></a><var>131.3</var>state aid under subdivision 1 and supplementary amortization state aid under subdivision <br/>
<a id="pl.131.4"></a><var>131.4</var>1a, after the local police or salaried firefighters' relief association has been consolidated <br/>
<a id="pl.131.5"></a><var>131.5</var>into the public employees police and fire fund. If a municipality loses entitlement for <br/>
<a id="pl.131.6"></a><var>131.6</var>amortization state aid and supplementary amortization state aid in any year because of <br/>
<a id="pl.131.7"></a><var>131.7</var>not having an additional municipal contribution under section 
<statute_ref>353A.09, subdivision 5</statute_ref>, <br/>
<a id="pl.131.8"></a><var>131.8</var>paragraph (b), the municipality is not entitled to the aid amounts in any subsequent year. A <br/>
<a id="pl.131.9"></a><var>131.9</var>municipality that received amortization aid in 1999 and is required to make an additional <br/>
<a id="pl.131.10"></a><var>131.10</var>municipal contribution under section 
<statute_ref>353.665, subdivision 8</statute_ref>, continues to qualify for the <br/>
<a id="pl.131.11"></a><var>131.11</var>amortization state aid and the supplemental amortization aid until December 31, 2009<br/>
<a id="pl.131.12"></a><var>131.12</var> received amortization aid in 2011 and is required to make a municipal contribution under <br/>
<a id="pl.131.13"></a><var>131.13</var>section 353.665, subdivision 8, paragraph (b), (c), or (d), whichever applies, continues to <br/>
<a id="pl.131.14"></a><var>131.14</var>qualify for amortization state aid for the duration of the applicable municipal contribution.<br/>
<br/>
<a id="bill.5.73.0"></a><a id="pl.131.15"></a><var>131.15</var>    Sec. 73. Minnesota Statutes 2012, section 423A.02, subdivision 3, is amended to read:<br/>
<a id="pl.131.16"></a><var>131.16</var>    Subd. 3. <b>Reallocation of amortization </b><b>or supplementary amortization</b><b> state aid.</b><br/>
<a id="pl.131.17"></a><var>131.17</var>    (a) Seventy percent of the difference between $5,720,000 and the current year amortization <br/>
<a id="pl.131.18"></a><var>131.18</var>aid and supplemental amortization aid distributed under subdivisions subdivision 1 and 1a<br/>
<a id="pl.131.19"></a><var>131.19</var> that is not distributed for any reason to a municipality for use by a local police or salaried <br/>
<a id="pl.131.20"></a><var>131.20</var>fire relief association must be distributed by the commissioner of revenue according to this <br/>
<a id="pl.131.21"></a><var>131.21</var>paragraph. The commissioner shall distribute 50 percent of the amounts derived under <br/>
<a id="pl.131.22"></a><var>131.22</var>this paragraph to the Teachers Retirement Association, ten percent to the Duluth Teachers <br/>
<a id="pl.131.23"></a><var>131.23</var>Retirement Fund Association, and 40 percent to the St. Paul Teachers Retirement Fund <br/>
<a id="pl.131.24"></a><var>131.24</var>Association to fund the unfunded actuarial accrued liabilities of the respective funds. <br/>
<a id="pl.131.25"></a><var>131.25</var>These payments shall must be made on or before June 30 July 15 each fiscal year. If the <br/>
<a id="pl.131.26"></a><var>131.26</var>St. Paul Teachers Retirement Fund Association or the Duluth Teachers Retirement Fund <br/>
<a id="pl.131.27"></a><var>131.27</var>Association becomes fully funded, its the association's eligibility for its portion of this <br/>
<a id="pl.131.28"></a><var>131.28</var>aid ceases. Amounts remaining in the undistributed balance account at the end of the <br/>
<a id="pl.131.29"></a><var>131.29</var>biennium if aid eligibility ceases cancel to the general fund.<br/>
<a id="pl.131.30"></a><var>131.30</var>    (b) In order to receive amortization and supplementary amortization aid under <br/>
<a id="pl.131.31"></a><var>131.31</var>paragraph (a), prior to before June 30 annually Independent School District No. 625, St. <br/>
<a id="pl.131.32"></a><var>131.32</var>Paul, must make an additional contribution of $800,000 each year to the St. Paul Teachers <br/>
<a id="pl.131.33"></a><var>131.33</var>Retirement Fund Association.<br/>
<a id="pl.131.34"></a><var>131.34</var>    (c) Thirty percent of the difference between $5,720,000 and the current year <br/>
<a id="pl.131.35"></a><var>131.35</var>amortization aid and supplemental amortization aid under subdivisions 1 and subdivision<br/>
<a id="pl.132.1"></a><var>132.1</var> 1a that is not distributed for any reason to a municipality for use by a local police or <br/>
<a id="pl.132.2"></a><var>132.2</var>salaried firefighter relief association must be distributed under section 
         <statute_ref>69.021, subdivision <br/>
<a id="pl.132.3"></a><var>132.3</var>7
         </statute_ref>, paragraph (d), as additional funding to support a minimum fire state aid amount for <br/>
<a id="pl.132.4"></a><var>132.4</var>volunteer firefighter relief associations.<br/>
<br/>
<a id="bill.5.74.0"></a><a id="pl.132.5"></a><var>132.5</var>    Sec. 74. Minnesota Statutes 2012, section 423A.02, subdivision 3a, is amended to read:<br/>
<a id="pl.132.6"></a><var>132.6</var>    Subd. 3a. <b>Appropriations for amortization state aid</b><b>; supplementary </b><br/>
<a id="pl.132.7"></a><var>132.7</var><b>amortization state aid;</b><b> and amortization state aid </b><b>and supplementary state aid</b><br/>
<a id="pl.132.8"></a><var>132.8</var><b> reallocations.</b> $4,720,000 $5,720,000 is annually appropriated from the general fund to <br/>
<a id="pl.132.9"></a><var>132.9</var>the commissioner of revenue for amortization state aid under subdivision 1, and for the <br/>
<a id="pl.132.10"></a><var>132.10</var>reallocation of amortization aid under subdivision 3. $1,000,000 is annually appropriated <br/>
<a id="pl.132.11"></a><var>132.11</var>from the general fund to the commissioner of revenue for supplementary amortization <br/>
<a id="pl.132.12"></a><var>132.12</var>state aid under subdivision 1a, and for the reallocation of supplementary amortization state <br/>
<a id="pl.132.13"></a><var>132.13</var>aid under subdivision 3.<br/>
<br/>
<a id="bill.5.75.0"></a><a id="pl.132.14"></a><var>132.14</var>    Sec. 75. Minnesota Statutes 2012, section 423A.02, subdivision 4, is amended to read:<br/>
<a id="pl.132.15"></a><var>132.15</var>    Subd. 4. <b>Limit on certain total aid amounts.</b> (a) The total of amortization aid, <br/>
<a id="pl.132.16"></a><var>132.16</var>supplemental amortization aid, and additional amortization aid under this section payable <br/>
<a id="pl.132.17"></a><var>132.17</var>to a municipality to which section 
         <statute_ref>353.665, subdivision 8</statute_ref>, paragraph (b), (c), or (d), <br/>
<a id="pl.132.18"></a><var>132.18</var>applies, may not exceed the amount of the additional municipal contribution payable by <br/>
<a id="pl.132.19"></a><var>132.19</var>an individual municipality under section 
         <statute_ref>353.665, subdivision 8</statute_ref>, paragraph (b), (c), or (d).<br/>
<a id="pl.132.20"></a><var>132.20</var>(b) Any aid amount in excess of the limit under this subdivision for an individual <br/>
<a id="pl.132.21"></a><var>132.21</var>municipality must be redistributed to the other municipalities to which section 
         <statute_ref>353.665, <br/>
<a id="pl.132.22"></a><var>132.22</var>subdivision 8
         </statute_ref>, paragraph (b), (c), or (d), applies. The excess aid must be distributed in <br/>
<a id="pl.132.23"></a><var>132.23</var>proportion to each municipality's additional municipal contribution under section 
         <statute_ref>353.665, <br/>
<a id="pl.132.24"></a><var>132.24</var>subdivision 8
         </statute_ref>, paragraph (b), (c), or (d).<br/>
<a id="pl.132.25"></a><var>132.25</var>(c) When the total aid for each municipality under this section equals the limit under <br/>
<a id="pl.132.26"></a><var>132.26</var>paragraph (a), any aid in excess of the limit must be redistributed under subdivision 1b.<br/>
<br/>
<a id="bill.5.76.0"></a><a id="pl.132.27"></a><var>132.27</var>    Sec. 76. Minnesota Statutes 2012, section 423A.02, subdivision 5, is amended to read:<br/>
<a id="pl.132.28"></a><var>132.28</var>    Subd. 5. <b>Termination of state aid programs.</b> The amortization state aid, <br/>
<a id="pl.132.29"></a><var>132.29</var>supplemental amortization state aid, and additional amortization state aid programs <br/>
<a id="pl.132.30"></a><var>132.30</var>terminate as of the December 31, next following the date of the actuarial valuation when <br/>
<a id="pl.132.31"></a><var>132.31</var>the assets of the St. Paul Teachers Retirement Fund Association equal the actuarial <br/>
<a id="pl.132.32"></a><var>132.32</var>accrued liability of that plan or December 31, 2009 when the assets of the Duluth Teachers <br/>
<a id="pl.133.1"></a><var>133.1</var>Retirement Fund Association equal the actuarial accrued liability of that plan, whichever <br/>
<a id="pl.133.2"></a><var>133.2</var>is later.<br/>
<br/>
<a id="bill.5.77.0"></a><a id="pl.133.3"></a><var>133.3</var>    Sec. 77. Minnesota Statutes 2012, section 424A.001, subdivision 4, is amended to read:<br/>
<a id="pl.133.4"></a><var>133.4</var>    Subd. 4. <b>Relief association.</b> (a) "Relief association" or "volunteer firefighters' relief <br/>
<a id="pl.133.5"></a><var>133.5</var>association" means a volunteer firefighters' relief association or a volunteer firefighters' <br/>
<a id="pl.133.6"></a><var>133.6</var>division or account of a partially salaried and partially volunteer firefighters' relief <br/>
<a id="pl.133.7"></a><var>133.7</var>association that is:<br/>
<a id="pl.133.8"></a><var>133.8</var>(1) organized and incorporated as a nonprofit corporation to provide retirement <br/>
<a id="pl.133.9"></a><var>133.9</var>benefits to volunteer firefighters under chapter 317A and any laws of the state;<br/>
<a id="pl.133.10"></a><var>133.10</var>(2) governed by this chapter and sections 
         <statute_ref>69.771</statute_ref> to 
         <statute_ref>69.775</statute_ref>; and<br/>
<a id="pl.133.11"></a><var>133.11</var>(3) directly associated with:<br/>
<a id="pl.133.12"></a><var>133.12</var>(i) a fire department established by municipal ordinance;<br/>
<a id="pl.133.13"></a><var>133.13</var>(ii) an independent nonprofit firefighting corporation that is organized under the <br/>
<a id="pl.133.14"></a><var>133.14</var>provisions of chapter 317A and that operates primarily for firefighting purposes; or<br/>
<a id="pl.133.15"></a><var>133.15</var>(iii) a fire department operated as or by a joint powers entity that operates primarily <br/>
<a id="pl.133.16"></a><var>133.16</var>for firefighting purposes.<br/>
<a id="pl.133.17"></a><var>133.17</var>(b) "Relief association" or "volunteer firefighters' relief association" does not mean:<br/>
<a id="pl.133.18"></a><var>133.18</var>(1) the Bloomington Fire Department Relief Association governed by section 
<statute_ref>69.77<br/>
<a id="pl.133.19"></a><var>133.19</var></statute_ref> sections 31 to 42; Minnesota Statutes 2000, chapter 424; and Laws 1965, chapter 446, <br/>
<a id="pl.133.20"></a><var>133.20</var>as amended; or<br/>
<a id="pl.133.21"></a><var>133.21</var>(2) the voluntary statewide lump-sum volunteer firefighter retirement plan governed <br/>
<a id="pl.133.22"></a><var>133.22</var>by chapter 353G.<br/>
<a id="pl.133.23"></a><var>133.23</var>(c) A relief association or volunteer firefighters' relief association is a governmental <br/>
<a id="pl.133.24"></a><var>133.24</var>entity that receives and manages public money to provide retirement benefits for individuals <br/>
<a id="pl.133.25"></a><var>133.25</var>providing the governmental services of firefighting and emergency first response.<br/>
<br/>
<a id="bill.5.78.0"></a><a id="pl.133.26"></a><var>133.26</var>    Sec. 78. Minnesota Statutes 2012, section 424A.02, subdivision 9, is amended to read:<br/>
<a id="pl.133.27"></a><var>133.27</var>    Subd. 9. <b>Limitation on ancillary benefits.</b> A defined benefit relief association, <br/>
<a id="pl.133.28"></a><var>133.28</var>including any volunteer firefighters relief association governed by section 
<statute_ref>69.77</statute_ref> sections <br/>
<a id="pl.133.29"></a><var>133.29</var>31 to 42 or any volunteer firefighters division of a relief association governed by chapter <br/>
<a id="pl.133.30"></a><var>133.30</var>424, may only pay ancillary benefits which would constitute an authorized disbursement <br/>
<a id="pl.133.31"></a><var>133.31</var>as specified in section 
         <statute_ref>424A.05</statute_ref> subject to the following requirements or limitations:<br/>
<a id="pl.133.32"></a><var>133.32</var>    (1) with respect to a defined benefit relief association in which governing bylaws <br/>
<a id="pl.133.33"></a><var>133.33</var>provide solely for a lump-sum service pension to a retiring member, or provide a retiring <br/>
<a id="pl.133.34"></a><var>133.34</var>member the choice of either a lump-sum service pension or a monthly service pension <br/>
<a id="pl.134.1"></a><var>134.1</var>and the lump-sum service pension was chosen, no ancillary benefit may be paid to any <br/>
<a id="pl.134.2"></a><var>134.2</var>former member or paid to any person on behalf of any former member after the former <br/>
<a id="pl.134.3"></a><var>134.3</var>member (i) terminates active service with the fire department and active membership <br/>
<a id="pl.134.4"></a><var>134.4</var>in the relief association; and (ii) commences receipt of a service pension as authorized <br/>
<a id="pl.134.5"></a><var>134.5</var>under this section; and<br/>
<a id="pl.134.6"></a><var>134.6</var>    (2) with respect to any defined benefit relief association, no ancillary benefit paid or <br/>
<a id="pl.134.7"></a><var>134.7</var>payable to any member, to any former member, or to any person on behalf of any member <br/>
<a id="pl.134.8"></a><var>134.8</var>or former member, may exceed in amount the total earned service pension of the member <br/>
<a id="pl.134.9"></a><var>134.9</var>or former member. The total earned service pension must be calculated by multiplying <br/>
<a id="pl.134.10"></a><var>134.10</var>the service pension amount specified in the bylaws of the relief association at the time of <br/>
<a id="pl.134.11"></a><var>134.11</var>death or disability, whichever applies, by the years of service credited to the member or <br/>
<a id="pl.134.12"></a><var>134.12</var>former member. The years of service must be determined as of (i) the date the member or <br/>
<a id="pl.134.13"></a><var>134.13</var>former member became entitled to the ancillary benefit; or (ii) the date the member or <br/>
<a id="pl.134.14"></a><var>134.14</var>former member died entitling a survivor or the estate of the member or former member to <br/>
<a id="pl.134.15"></a><var>134.15</var>an ancillary benefit. The ancillary benefit must be calculated without regard to whether the <br/>
<a id="pl.134.16"></a><var>134.16</var>member had attained the minimum amount of service and membership credit specified in <br/>
<a id="pl.134.17"></a><var>134.17</var>the governing bylaws. For active members, the amount of a permanent disability benefit <br/>
<a id="pl.134.18"></a><var>134.18</var>or a survivor benefit must be equal to the member's total earned service pension except <br/>
<a id="pl.134.19"></a><var>134.19</var>that the bylaws of a defined benefit relief association may provide for the payment of a <br/>
<a id="pl.134.20"></a><var>134.20</var>survivor benefit in an amount not to exceed five times the yearly service pension amount <br/>
<a id="pl.134.21"></a><var>134.21</var>specified in the bylaws on behalf of any member who dies before having performed five <br/>
<a id="pl.134.22"></a><var>134.22</var>years of active service in the fire department with which the relief association is affiliated.<br/>
<a id="pl.134.23"></a><var>134.23</var>(3)(i) If a lump sum survivor or death benefit is payable under the articles of <br/>
<a id="pl.134.24"></a><var>134.24</var>incorporation or bylaws, the benefit must be paid:<br/>
<a id="pl.134.25"></a><var>134.25</var>(A) as a survivor benefit to the surviving spouse of the deceased firefighter;<br/>
<a id="pl.134.26"></a><var>134.26</var>(B) as a survivor benefit to the surviving children of the deceased firefighter if <br/>
<a id="pl.134.27"></a><var>134.27</var>no surviving spouse;<br/>
<a id="pl.134.28"></a><var>134.28</var>(C) as a survivor benefit to a designated beneficiary of the deceased firefighter if no <br/>
<a id="pl.134.29"></a><var>134.29</var>surviving spouse or surviving children; or<br/>
<a id="pl.134.30"></a><var>134.30</var>(D) as a death benefit to the estate of the deceased active or deferred firefighter if no <br/>
<a id="pl.134.31"></a><var>134.31</var>surviving children and no beneficiary designated.<br/>
<a id="pl.134.32"></a><var>134.32</var>(ii) If there are no surviving children, the surviving spouse may waive, in writing, <br/>
<a id="pl.134.33"></a><var>134.33</var>wholly or partially, the spouse's entitlement to a survivor benefit.<br/>
<a id="pl.134.34"></a><var>134.34</var>(4)(i) If a monthly benefit survivor or death benefit is payable under the articles of <br/>
<a id="pl.134.35"></a><var>134.35</var>incorporation or bylaws, the benefit must be paid:<br/>
<a id="pl.134.36"></a><var>134.36</var>(A) as a survivor benefit to the surviving spouse of the deceased firefighter;<br/>
<a id="pl.135.1"></a><var>135.1</var>(B) as a survivor benefit to the surviving children of the deceased firefighter if <br/>
<a id="pl.135.2"></a><var>135.2</var>no surviving spouse;<br/>
<a id="pl.135.3"></a><var>135.3</var>(C) as a survivor benefit to a designated beneficiary of the deceased firefighter if no <br/>
<a id="pl.135.4"></a><var>135.4</var>surviving spouse or surviving children; or<br/>
<a id="pl.135.5"></a><var>135.5</var>(D) as a death benefit to the estate of the deceased active or deferred firefighter if no <br/>
<a id="pl.135.6"></a><var>135.6</var>surviving spouse, no surviving children, and no beneficiary designated.<br/>
<a id="pl.135.7"></a><var>135.7</var>(ii) If there are no surviving children, the surviving spouse may waive, in writing, <br/>
<a id="pl.135.8"></a><var>135.8</var>wholly or partially, the spouse's entitlement to a survivor benefit.<br/>
<a id="pl.135.9"></a><var>135.9</var>(iii) For purposes of this clause, if the relief association bylaws authorize a monthly <br/>
<a id="pl.135.10"></a><var>135.10</var>survivor benefit payable to a designated beneficiary, the relief association bylaws may <br/>
<a id="pl.135.11"></a><var>135.11</var>limit the total survivor benefit amount payable.<br/>
<a id="pl.135.12"></a><var>135.12</var>(5) For purposes of this section, for a monthly benefit volunteer fire relief association <br/>
<a id="pl.135.13"></a><var>135.13</var>or for a combination lump-sum and monthly benefit volunteer fire relief association where <br/>
<a id="pl.135.14"></a><var>135.14</var>a monthly benefit service pension has been elected by or a monthly benefit is payable with <br/>
<a id="pl.135.15"></a><var>135.15</var>respect to a firefighter, a designated beneficiary must be a natural person. For purposes <br/>
<a id="pl.135.16"></a><var>135.16</var>of this section, for a lump-sum volunteer fire relief association or for a combination <br/>
<a id="pl.135.17"></a><var>135.17</var>lump-sum and monthly benefit volunteer fire relief association where a lump-sum service <br/>
<a id="pl.135.18"></a><var>135.18</var>pension has been elected by or a lump-sum benefit is payable with respect to a firefighter, <br/>
<a id="pl.135.19"></a><var>135.19</var>a trust created under chapter 501B may be a designated beneficiary. If a trust is payable to <br/>
<a id="pl.135.20"></a><var>135.20</var>the surviving children organized under chapter 501B as authorized by this section and <br/>
<a id="pl.135.21"></a><var>135.21</var>there is no surviving spouse, the survivor benefit may be paid to the trust, notwithstanding <br/>
<a id="pl.135.22"></a><var>135.22</var>a requirement of this section to the contrary.<br/>
<br/>
<a id="bill.5.79.0"></a><a id="pl.135.23"></a><var>135.23</var>    Sec. 79. Minnesota Statutes 2012, section 475.52, subdivision 6, is amended to read:<br/>
<a id="pl.135.24"></a><var>135.24</var>    Subd. 6. <b>Certain purposes.</b> Any municipality may issue bonds for paying <br/>
<a id="pl.135.25"></a><var>135.25</var>judgments against it; for refunding outstanding bonds; for funding floating indebtedness; <br/>
<a id="pl.135.26"></a><var>135.26</var>for funding actuarial liabilities to pay postemployment benefits to employees or officers <br/>
<a id="pl.135.27"></a><var>135.27</var>after their termination of service; or for funding all or part of the municipality's current <br/>
<a id="pl.135.28"></a><var>135.28</var>and future unfunded liability for a pension or retirement fund or plan referred to in <br/>
<a id="pl.135.29"></a><var>135.29</var>section 
         <statute_ref>356.20, subdivision 2</statute_ref>, as those liabilities are most recently computed under <br/>
<a id="pl.135.30"></a><var>135.30</var>sections 
         <statute_ref>356.215</statute_ref> and 
         <statute_ref>356.216</statute_ref>. The board of trustees or directors of a the Bloomington <br/>
<a id="pl.135.31"></a><var>135.31</var>Fire Department Relief Association referred to in section 
<statute_ref>69.77</statute_ref> must consent and must <br/>
<a id="pl.135.32"></a><var>135.32</var>be a party to any contract made under this section with respect to the fund held by it <br/>
<a id="pl.135.33"></a><var>135.33</var>for the benefit of and in trust for its members. For purposes of this section, the term <br/>
<a id="pl.135.34"></a><var>135.34</var>"postemployment benefits" means benefits giving rise to a liability under Statement No. <br/>
<a id="pl.135.35"></a><var>135.35</var>45 of the Governmental Accounting Standards Board.<br/>
<br/>
<a id="bill.5.80.0"></a><a id="pl.136.1"></a><var>136.1</var>    Sec. 80. <b>REVISOR'S INSTRUCTION.</b><br/>
<a id="pl.136.2"></a><var>136.2</var>(a) The revisor of statutes shall not show the text of Minnesota Statutes, section <br/>
<a id="pl.136.3"></a><var>136.3</var>69.77, and shall add the note in Minnesota Statutes, section 69.77, "CITY OF <br/>
<a id="pl.136.4"></a><var>136.4</var>BLOOMINGTON; LOCAL."<br/>
<a id="pl.136.5"></a><var>136.5</var>(b) In Minnesota Statutes 2014 and subsequent editions, Minnesota Statutes, <br/>
<a id="pl.136.6"></a><var>136.6</var>sections 69.771 to 69.776 must be recodified as Minnesota Statutes, sections 424A.091 <br/>
<a id="pl.136.7"></a><var>136.7</var>to 424A.096, and all statutory cross-references revised.<br/>
<br/>
<a id="bill.5.81.0"></a><a id="pl.136.8"></a><var>136.8</var>    Sec. 81. <b> REPEALER.</b><br/>
<a id="pl.136.9"></a><var>136.9</var>(a) Minnesota Statutes 2012, section 353.665, subdivisions 2, 3, 4, 6, 7, 9, and <br/>
<a id="pl.136.10"></a><var>136.10</var>10, are repealed.<br/>
<a id="pl.136.11"></a><var>136.11</var>(b) Minnesota Statutes 2012, sections 353.667; 353.668; 353.669; and 353.6691, are <br/>
<a id="pl.136.12"></a><var>136.12</var>repealed.<br/>
<a id="pl.136.13"></a><var>136.13</var>(c) Minnesota Statutes 2012, sections 353A.01; 353A.02; 353A.03; 353A.04; <br/>
<a id="pl.136.14"></a><var>136.14</var>353A.05; 353A.06; 353A.07; 353A.08; 353A.081; 353A.083; 353A.09; 353A.10; <br/>
<a id="pl.136.15"></a><var>136.15</var>353B.01; 353B.02; 353B.03; 353B.04; 353B.05; 353B.06; 353B.07; 353B.08; 353B.09; <br/>
<a id="pl.136.16"></a><var>136.16</var>353B.10; 353B.11; 353B.12; 353B.13; and 353B.14, are repealed.<br/>
<a id="pl.136.17"></a><var>136.17</var>(d) Minnesota Statutes 2012, sections 423A.01; 423A.04; 423A.05; 423A.07; <br/>
<a id="pl.136.18"></a><var>136.18</var>423A.10; 423A.11; 423A.12; 423A.13; 423A.14; 423A.15; 423A.16; 423A.17; 423A.171; <br/>
<a id="pl.136.19"></a><var>136.19</var>423A.18; 423A.19; 423A.20; 423A.21; and 423A.22, are repealed.<br/>
<a id="pl.136.20"></a><var>136.20</var>(e) Minnesota Statutes 2012, sections 69.021, subdivision 6; 353.64, subdivision 3; <br/>
<a id="pl.136.21"></a><var>136.21</var>and 423A.02, subdivision 1a, are repealed.<br/>
<a id="pl.136.22"></a><var>136.22</var>(f) Minnesota Statutes 2012, section 69.77, subdivision 3, is repealed.<br/>
<br/>
<a id="bill.5.82.0"></a><a id="pl.136.23"></a><var>136.23</var>    Sec. 82. <b>EFFECTIVE DATE; PRIOR AID ALLOCATIONS VALIDATED.</b><br/>
<a id="pl.136.24"></a><var>136.24</var>(a) Sections 70 to 76 are effective June 1, 2013.<br/>
<a id="pl.136.25"></a><var>136.25</var>(b) Except as provided in paragraph (c), sections 1 to 69 and 77 to 81 are effective <br/>
<a id="pl.136.26"></a><var>136.26</var>July 1, 2013.<br/>
<a id="pl.136.27"></a><var>136.27</var>(c) With respect to the city of Minneapolis, section 18 is effective retroactively from <br/>
<a id="pl.136.28"></a><var>136.28</var>July 20, 2011, and with respect to the city of Fairmont, section 18 is effective retroactively <br/>
<a id="pl.136.29"></a><var>136.29</var>from May 10, 2012.<br/>
<a id="pl.136.30"></a><var>136.30</var>(d) Allocations of amortization state aid, supplementary amortization state aid, or <br/>
<a id="pl.136.31"></a><var>136.31</var>additional amortization state aid made by the commissioner of revenue before January 1, <br/>
<a id="pl.136.32"></a><var>136.32</var>2013, are hereby validated.<br/>
<br/>
<a id="bill.6.0.0"></a>

<a id="bill.6.1.0"></a><a id="pl.137.3"></a><var>137.3</var>    Section 1. Minnesota Statutes 2012, section 69.771, subdivision 1, is amended to read:<br/>
<a id="pl.137.4"></a><var>137.4</var>    Subdivision 1. <b>Covered relief associations.</b> The applicable provisions of sections <br/>
<statute_ref><a id="pl.137.5"></a><var>137.5</var>69.771
         </statute_ref> to 
         <statute_ref>69.776</statute_ref> apply to govern any firefighters' relief association other than defined in <br/>
<a id="pl.137.6"></a><var>137.6</var>section 424A.001, subdivision 4, and do not apply to a relief association enumerated in <br/>
<a id="pl.137.7"></a><var>137.7</var>section 
         <statute_ref>69.77, subdivision 1a</statute_ref>, which is organized under any laws of this state, which is <br/>
<a id="pl.137.8"></a><var>137.8</var>composed of volunteer firefighters or is composed partially of volunteer firefighters and <br/>
<a id="pl.137.9"></a><var>137.9</var>partially of salaried firefighters with retirement coverage provided by the public employees <br/>
<a id="pl.137.10"></a><var>137.10</var>police and fire fund and which, in either case, operates subject to the service pension <br/>
<a id="pl.137.11"></a><var>137.11</var>minimum requirements for entitlement and maximums contained in section 
<statute_ref>424A.02</statute_ref>, or <br/>
<a id="pl.137.12"></a><var>137.12</var>subject to a special law modifying those requirements or maximums.<br/>
<a id="pl.137.13"></a><var>137.13</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.6.2.0"></a><a id="pl.137.14"></a><var>137.14</var>    Sec. 2. Minnesota Statutes 2012, section 69.774, subdivision 1, is amended to read:<br/>
<a id="pl.137.15"></a><var>137.15</var>    Subdivision 1. <b>Authorized inclusion in fire state aid program; covered nonprofit </b><br/>
<a id="pl.137.16"></a><var>137.16</var><b>corporations.</b> (a) This section shall apply applies to any independent nonprofit firefighting <br/>
<a id="pl.137.17"></a><var>137.17</var>corporation incorporated or organized pursuant to under chapter 317A which: (1) operates <br/>
<a id="pl.137.18"></a><var>137.18</var>exclusively for firefighting purposes,; (2) which is composed of volunteer firefighters,; <br/>
<a id="pl.137.19"></a><var>137.19</var>and (3) which has a duly established separate subsidiary incorporated firefighters' relief <br/>
<a id="pl.137.20"></a><var>137.20</var>association which provides retirement coverage for or pays a service pension to a retired <br/>
<a id="pl.137.21"></a><var>137.21</var>firefighter or a retirement benefit to a surviving dependent of either an active or a retired <br/>
<a id="pl.137.22"></a><var>137.22</var>firefighter, and which operates is subject to the service pension minimum requirements <br/>
<a id="pl.137.23"></a><var>137.23</var>for entitlement to and maximums for a service pension contained in section 
<statute_ref>424A.02</statute_ref>, <br/>
<a id="pl.137.24"></a><var>137.24</var>or a special law modifying those requirements or maximums applicable provisions of <br/>
<a id="pl.137.25"></a><var>137.25</var>chapter 424A.<br/>
<a id="pl.137.26"></a><var>137.26</var>(b) Notwithstanding any law to the contrary, a municipality contracting with an <br/>
<a id="pl.137.27"></a><var>137.27</var>independent nonprofit firefighting corporation shall must be included in the distribution of <br/>
<a id="pl.137.28"></a><var>137.28</var>fire state aid to the appropriate county auditor by the state auditor only if the independent <br/>
<a id="pl.137.29"></a><var>137.29</var>nonprofit firefighting corporation complies with the provisions of this section.<br/>
<a id="pl.137.30"></a><var>137.30</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.6.3.0"></a><a id="pl.137.31"></a><var>137.31</var>    Sec. 3. Minnesota Statutes 2012, section 353G.05, subdivision 2, is amended to read:<br/>
<a id="pl.138.1"></a><var>138.1</var>    Subd. 2. <b>Election of coverage.</b> (a) The process for electing coverage of volunteer <br/>
<a id="pl.138.2"></a><var>138.2</var>firefighters by the retirement plan is initiated by a request to the executive director for a <br/>
<a id="pl.138.3"></a><var>138.3</var>cost analysis of the prospective retirement coverage.<br/>
<a id="pl.138.4"></a><var>138.4</var>(b) If the volunteer firefighters are currently covered by a volunteer firefighters' relief <br/>
<a id="pl.138.5"></a><var>138.5</var>association governed by chapter 424A, the cost analysis of the prospective retirement <br/>
<a id="pl.138.6"></a><var>138.6</var>coverage must be requested jointly by the secretary of the volunteer firefighters' relief <br/>
<a id="pl.138.7"></a><var>138.7</var>association, following approval of the request by the board of the volunteer firefighters' <br/>
<a id="pl.138.8"></a><var>138.8</var>relief association, and the chief administrative officer of the entity associated with the relief <br/>
<a id="pl.138.9"></a><var>138.9</var>association, following approval of the request by the governing body of the entity associated <br/>
<a id="pl.138.10"></a><var>138.10</var>with the relief association. If the relief association is associated with more than one entity, <br/>
<a id="pl.138.11"></a><var>138.11</var>the chief administrative officer of each associated entity must execute the request. If <br/>
<a id="pl.138.12"></a><var>138.12</var>the volunteer firefighters are not currently covered by a volunteer firefighters' relief <br/>
<a id="pl.138.13"></a><var>138.13</var>association, the cost analysis of the prospective retirement coverage must be requested by <br/>
<a id="pl.138.14"></a><var>138.14</var>the chief administrative officer of the entity operating the fire department. The request <br/>
<a id="pl.138.15"></a><var>138.15</var>must be made in writing and must be made on a form prescribed by the executive director.<br/>
<a id="pl.138.16"></a><var>138.16</var>(c) The cost analysis of the prospective retirement coverage by the statewide <br/>
<a id="pl.138.17"></a><var>138.17</var>retirement plan must be based on the service pension amount under section 
         <statute_ref>353G.11</statute_ref> <br/>
<a id="pl.138.18"></a><var>138.18</var>closest to the service pension amount provided by the volunteer firefighters' relief <br/>
<a id="pl.138.19"></a><var>138.19</var>association if the relief association is a lump-sum defined benefit plan, or the amount equal <br/>
<a id="pl.138.20"></a><var>138.20</var>to 95 percent of the most current average account balance per relief association member if <br/>
<a id="pl.138.21"></a><var>138.21</var>the relief association is a defined contribution plan, or to the lowest service pension amount <br/>
<a id="pl.138.22"></a><var>138.22</var>under section 
         <statute_ref>353G.11</statute_ref> if there is no volunteer firefighters' relief association, rounded up, <br/>
<a id="pl.138.23"></a><var>138.23</var>and any other service pension amount designated by the requester or requesters. The cost <br/>
<a id="pl.138.24"></a><var>138.24</var>analysis must be prepared using a mathematical procedure certified as accurate by an <br/>
<a id="pl.138.25"></a><var>138.25</var>approved actuary retained by the Public Employees Retirement Association.<br/>
<a id="pl.138.26"></a><var>138.26</var>(d) If a cost analysis is requested and a volunteer firefighters' relief association exists <br/>
<a id="pl.138.27"></a><var>138.27</var>that has filed the information required under section 
         <statute_ref>69.051</statute_ref> in a timely fashion, upon <br/>
<a id="pl.138.28"></a><var>138.28</var>request by the executive director, the state auditor shall provide the most recent data <br/>
<a id="pl.138.29"></a><var>138.29</var>available on the financial condition of the volunteer firefighters' relief association, the most <br/>
<a id="pl.138.30"></a><var>138.30</var>recent firefighter demographic data available, and a copy of the current relief association <br/>
<a id="pl.138.31"></a><var>138.31</var>bylaws. If a cost analysis is requested, but no volunteer firefighters' relief association <br/>
<a id="pl.138.32"></a><var>138.32</var>exists, the chief administrative officer of the entity operating the fire department shall <br/>
<a id="pl.138.33"></a><var>138.33</var>provide the demographic information on the volunteer firefighters serving as members <br/>
<a id="pl.138.34"></a><var>138.34</var>of the fire department requested by the executive director.<br/>
<a id="pl.138.35"></a><var>138.35</var>(e) If a cost analysis is requested, the executive director of the State Board of <br/>
<a id="pl.138.36"></a><var>138.36</var>Investment shall review the investment portfolio of the relief association, if applicable, <br/>
<a id="pl.139.1"></a><var>139.1</var>for compliance with the applicable provisions of chapter 11A and for appropriateness <br/>
<a id="pl.139.2"></a><var>139.2</var>for retention under the established investment objectives and investment policies of the <br/>
<a id="pl.139.3"></a><var>139.3</var>State Board of Investment. If the prospective retirement coverage change is approved <br/>
<a id="pl.139.4"></a><var>139.4</var>under paragraph (f), the State Board of Investment may require that the relief association <br/>
<a id="pl.139.5"></a><var>139.5</var>liquidate any investment security or other asset which the executive director of the State <br/>
<a id="pl.139.6"></a><var>139.6</var>Board of Investment has determined to be an ineligible or inappropriate investment for <br/>
<a id="pl.139.7"></a><var>139.7</var>retention by the State Board of Investment. The security or asset liquidation must occur <br/>
<a id="pl.139.8"></a><var>139.8</var>before the effective date of the transfer of retirement plan coverage. If requested to do so by <br/>
<a id="pl.139.9"></a><var>139.9</var>the chief administrative officer of the relief association, the executive director of the State <br/>
<a id="pl.139.10"></a><var>139.10</var>Board of Investment shall provide advice about the best means to conduct the liquidation.<br/>
<a id="pl.139.11"></a><var>139.11</var>(f) Upon receipt of the cost analysis, the governing body of the municipality or <br/>
<a id="pl.139.12"></a><var>139.12</var>independent nonprofit firefighting corporation associated with the fire department shall <br/>
<a id="pl.139.13"></a><var>139.13</var>either approve or disapprove the retirement coverage change within 90 120 days. If the <br/>
<a id="pl.139.14"></a><var>139.14</var>retirement coverage change is not acted upon within 90 120 days, it is deemed to be <br/>
<a id="pl.139.15"></a><var>139.15</var>disapproved. If the retirement coverage change is approved by the applicable governing <br/>
<a id="pl.139.16"></a><var>139.16</var>body, coverage by the voluntary statewide lump-sum volunteer firefighter retirement plan <br/>
<a id="pl.139.17"></a><var>139.17</var>is effective on the next following January 1.<br/>
<a id="pl.139.18"></a><var>139.18</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2013.<br/>
<br/>
<a id="bill.6.4.0"></a><a id="pl.139.19"></a><var>139.19</var>    Sec. 4. Minnesota Statutes 2012, section 424A.001, is amended by adding a <br/>
<a id="pl.139.20"></a><var>139.20</var>subdivision to read:<br/>
<a id="pl.139.21"></a><var>139.21</var>    Subd. 11. <b>Fiscal year.</b> The fiscal year for a volunteer firefighter relief association <br/>
<a id="pl.139.22"></a><var>139.22</var>begins on January 1 of each calendar year and ends on December 31 of the same calendar <br/>
<a id="pl.139.23"></a><var>139.23</var>year.<br/>
<a id="pl.139.24"></a><var>139.24</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.6.5.0"></a><a id="pl.139.25"></a><var>139.25</var>    Sec. 5. Minnesota Statutes 2012, section 424A.01, subdivision 6, is amended to read:<br/>
<a id="pl.139.26"></a><var>139.26</var>    Subd. 6. <b>Return to active firefighting after break in service.</b> (a) The requirements <br/>
<a id="pl.139.27"></a><var>139.27</var>of This section apply subdivision applies to all breaks in service, except breaks in that the <br/>
<a id="pl.139.28"></a><var>139.28</var>resumption service mandated by requirements of this subdivision do not apply to leaves <br/>
<a id="pl.139.29"></a><var>139.29</var>of absence made available by federal or statute, such as the Family Medical Leave Act, <br/>
<a id="pl.139.30"></a><var>139.30</var>United States Code, title 29, section 2691, and the Uniformed Services Employment and <br/>
<a id="pl.139.31"></a><var>139.31</var>Reemployment Rights Act, United States Code, title 38, section 4301, and do not apply <br/>
<a id="pl.139.32"></a><var>139.32</var>to leaves of absence made available by state law statute, such as the Parental Leave Act, <br/>
<a id="pl.139.33"></a><var>139.33</var>section 181.941; the Leave for Organ Donations Act, section 181.9456; the Leave for <br/>
<a id="pl.140.1"></a><var>140.1</var>Civil Air Patrol Service Act, section 181.946; the Leave for Immediate Family Members <br/>
<a id="pl.140.2"></a><var>140.2</var>of Military Personnel Injured or Killed in Active Service Act, section 181.947; or the <br/>
<a id="pl.140.3"></a><var>140.3</var>Protection of Jurors' Employment Act, section 593.50.<br/>
<a id="pl.140.4"></a><var>140.4</var>(b)(1) If a firefighter who has ceased to perform or supervise fire suppression and <br/>
<a id="pl.140.5"></a><var>140.5</var>fire prevention duties for at least 60 days resumes performing active firefighting with the <br/>
<a id="pl.140.6"></a><var>140.6</var>fire department associated with the relief association, if the bylaws of the relief association <br/>
<a id="pl.140.7"></a><var>140.7</var>so permit, the firefighter may again become an active member of the relief association. A <br/>
<a id="pl.140.8"></a><var>140.8</var>firefighter who returns to active service and membership is subject to the service pension <br/>
<a id="pl.140.9"></a><var>140.9</var>calculation requirements under this section.<br/>
<a id="pl.140.10"></a><var>140.10</var>(2) A firefighter who has been granted an approved leave of absence not exceeding <br/>
<a id="pl.140.11"></a><var>140.11</var>one year by the fire department or by the relief association is exempt from the minimum <br/>
<a id="pl.140.12"></a><var>140.12</var>period of resumption service requirement of this section.<br/>
<a id="pl.140.13"></a><var>140.13</var>(3) A person who has a break in service not exceeding one year but has not been <br/>
<a id="pl.140.14"></a><var>140.14</var>granted an approved leave of absence and who has not received a service pension or <br/>
<a id="pl.140.15"></a><var>140.15</var>disability benefit may be made exempt from the minimum period of resumption service <br/>
<a id="pl.140.16"></a><var>140.16</var>requirement of this section by the relief association bylaws.<br/>
<a id="pl.140.17"></a><var>140.17</var>(4) If the bylaws so provide, a firefighter who returns to active relief association <br/>
<a id="pl.140.18"></a><var>140.18</var>membership under this paragraph may continue to collect a monthly service pension, <br/>
<a id="pl.140.19"></a><var>140.19</var>notwithstanding the service pension eligibility requirements under chapter 424A.<br/>
<a id="pl.140.20"></a><var>140.20</var>(c) If a former firefighter who has received a service pension or disability benefit <br/>
<a id="pl.140.21"></a><var>140.21</var>returns to active relief association membership under paragraph (b), the firefighter may <br/>
<a id="pl.140.22"></a><var>140.22</var>qualify for the receipt of a service pension from the relief association for the resumption <br/>
<a id="pl.140.23"></a><var>140.23</var>service period if the firefighter meets the service requirements of section 
         <statute_ref>424A.016, <br/>
<a id="pl.140.24"></a><var>140.24</var>subdivision 3
         </statute_ref>, or 
         <statute_ref>424A.02, subdivision 2</statute_ref>. No firefighter may be paid a service pension <br/>
<a id="pl.140.25"></a><var>140.25</var>more than once for the same period of service.<br/>
<a id="pl.140.26"></a><var>140.26</var>(d) If a former firefighter who has not received a service pension or disability benefit <br/>
<a id="pl.140.27"></a><var>140.27</var>returns to active relief association membership under paragraph (b), the firefighter may <br/>
<a id="pl.140.28"></a><var>140.28</var>qualify for the receipt of a service pension from the relief association for the original and <br/>
<a id="pl.140.29"></a><var>140.29</var>resumption service periods if the firefighter meets the service requirements of section <br/>
<statute_ref><a id="pl.140.30"></a><var>140.30</var>424A.016
         </statute_ref>, subdivision 3, or 
         <statute_ref>424A.02, subdivision 2</statute_ref>, based on the original and resumption <br/>
<a id="pl.140.31"></a><var>140.31</var>years of service credit.<br/>
<a id="pl.140.32"></a><var>140.32</var>(e) A firefighter who returns to active lump-sum relief association membership under <br/>
<a id="pl.140.33"></a><var>140.33</var>paragraph (b) and who qualifies for a service pension under paragraph (c) must have, <br/>
<a id="pl.140.34"></a><var>140.34</var>upon a subsequent cessation of duties, any service pension for the resumption service <br/>
<a id="pl.140.35"></a><var>140.35</var>period calculated as a separate benefit. If a lump-sum service pension had been paid to the <br/>
<a id="pl.140.36"></a><var>140.36</var>firefighter upon the firefighter's previous cessation of duties, a second lump-sum service <br/>
<a id="pl.141.1"></a><var>141.1</var>pension for the resumption service period must be calculated by applying the service <br/>
<a id="pl.141.2"></a><var>141.2</var>pension amount in effect on the date of the firefighter's termination of the resumption <br/>
<a id="pl.141.3"></a><var>141.3</var>service for all years of the resumption service.<br/>
<a id="pl.141.4"></a><var>141.4</var>(f) A firefighter who had not been paid a lump-sum service pension returns to active <br/>
<a id="pl.141.5"></a><var>141.5</var>relief association membership under paragraph (b), who did not meet the minimum period <br/>
<a id="pl.141.6"></a><var>141.6</var>of resumption service requirement specified in the relief association's bylaws, but who <br/>
<a id="pl.141.7"></a><var>141.7</var>does meet the minimum service requirement of section 
         <statute_ref>424A.02, subdivision 2</statute_ref>, based <br/>
<a id="pl.141.8"></a><var>141.8</var>on the firefighter's original and resumption years of active service, must have, upon a <br/>
<a id="pl.141.9"></a><var>141.9</var>subsequent cessation of duties, a service pension for the original and resumption service <br/>
<a id="pl.141.10"></a><var>141.10</var>periods calculated by applying the service pension amount in effect on the date of the <br/>
<a id="pl.141.11"></a><var>141.11</var>firefighter's termination of the resumption service, or, if the bylaws so provide, based on <br/>
<a id="pl.141.12"></a><var>141.12</var>the service pension amount in effect on the date of the firefighter's previous cessation <br/>
<a id="pl.141.13"></a><var>141.13</var>of duties. The service pension for a firefighter who returns to active lump-sum relief <br/>
<a id="pl.141.14"></a><var>141.14</var>association membership under this paragraph, but who had met the minimum period <br/>
<a id="pl.141.15"></a><var>141.15</var>of resumption service requirement specified in the relief association's bylaws, must be <br/>
<a id="pl.141.16"></a><var>141.16</var>calculated by applying the service pension amount in effect on the date of the firefighter's <br/>
<a id="pl.141.17"></a><var>141.17</var>termination of the resumption service.<br/>
<a id="pl.141.18"></a><var>141.18</var>(g) If a firefighter receiving a monthly benefit service pension returns to active <br/>
<a id="pl.141.19"></a><var>141.19</var>monthly benefit relief association membership under paragraph (b), and if the relief <br/>
<a id="pl.141.20"></a><var>141.20</var>association bylaws do not allow for the firefighter to continue collecting a monthly service <br/>
<a id="pl.141.21"></a><var>141.21</var>pension, any monthly benefit service pension payable to the firefighter is suspended as <br/>
<a id="pl.141.22"></a><var>141.22</var>of the first day of the month next following the date on which the firefighter returns to <br/>
<a id="pl.141.23"></a><var>141.23</var>active membership. If the firefighter was receiving a monthly benefit service pension, <br/>
<a id="pl.141.24"></a><var>141.24</var>and qualifies for a service pension under paragraph (c), the firefighter is entitled to <br/>
<a id="pl.141.25"></a><var>141.25</var>an additional monthly benefit service pension upon a subsequent cessation of duties <br/>
<a id="pl.141.26"></a><var>141.26</var>calculated based on the resumption service credit and the service pension accrual amount <br/>
<a id="pl.141.27"></a><var>141.27</var>in effect on the date of the termination of the resumption service. A suspended initial <br/>
<a id="pl.141.28"></a><var>141.28</var>service pension resumes as of the first of the month next following the termination of the <br/>
<a id="pl.141.29"></a><var>141.29</var>resumption service. If the firefighter was not receiving a monthly benefit service pension <br/>
<a id="pl.141.30"></a><var>141.30</var>and meets the minimum service requirement of section 
         <statute_ref>424A.02, subdivision 2</statute_ref>, a service <br/>
<a id="pl.141.31"></a><var>141.31</var>pension must be calculated by applying the service pension amount in effect on the date of <br/>
<a id="pl.141.32"></a><var>141.32</var>the firefighter's termination of the resumption service for all years of service credit.<br/>
<a id="pl.141.33"></a><var>141.33</var>(h) A firefighter who was not receiving a monthly benefit service pension returns to <br/>
<a id="pl.141.34"></a><var>141.34</var>active relief association membership under paragraph (b), who did not meet the minimum <br/>
<a id="pl.141.35"></a><var>141.35</var>period of resumption service requirement specified in the relief association's bylaws, but <br/>
<a id="pl.141.36"></a><var>141.36</var>who does meet the minimum service requirement of section 
         <statute_ref>424A.02, subdivision 2</statute_ref>, <br/>
<a id="pl.142.1"></a><var>142.1</var>based on the firefighter's original and resumption years of active service, must have, <br/>
<a id="pl.142.2"></a><var>142.2</var>upon a subsequent cessation of duties, a service pension for the original and resumption <br/>
<a id="pl.142.3"></a><var>142.3</var>service periods calculated by applying the service pension amount in effect on the date of <br/>
<a id="pl.142.4"></a><var>142.4</var>the firefighter's termination of the resumption service, or, if the bylaws so provide, based <br/>
<a id="pl.142.5"></a><var>142.5</var>on the service pension amount in effect on the date of the firefighter's previous cessation <br/>
<a id="pl.142.6"></a><var>142.6</var>of duties. The service pension for a firefighter who returns to active relief association <br/>
<a id="pl.142.7"></a><var>142.7</var>membership under this paragraph, but who had met the minimum period of resumption <br/>
<a id="pl.142.8"></a><var>142.8</var>service requirement specified in the relief association's bylaws, must be calculated by <br/>
<a id="pl.142.9"></a><var>142.9</var>applying the service pension amount in effect on the date of the firefighter's termination of <br/>
<a id="pl.142.10"></a><var>142.10</var>the resumption service.<br/>
<a id="pl.142.11"></a><var>142.11</var>(i) For defined contribution plans, a firefighter who returns to active relief <br/>
<a id="pl.142.12"></a><var>142.12</var>association membership under paragraph (b) and who qualifies for a service pension <br/>
<a id="pl.142.13"></a><var>142.13</var>under paragraph (c) or (d) must have, upon a subsequent cessation of duties, any service <br/>
<a id="pl.142.14"></a><var>142.14</var>pension for the resumption service period calculated as a separate benefit. If a service <br/>
<a id="pl.142.15"></a><var>142.15</var>pension had been paid to the firefighter upon the firefighter's previous cessation of duties, <br/>
<a id="pl.142.16"></a><var>142.16</var>and if the firefighter meets the minimum service requirement of section 
         <statute_ref>424A.016</statute_ref>, <br/>
<a id="pl.142.17"></a><var>142.17</var>subdivision 3, based on the resumption years of service, a second service pension for <br/>
<a id="pl.142.18"></a><var>142.18</var>the resumption service period must be calculated to include allocations credited to the <br/>
<a id="pl.142.19"></a><var>142.19</var>firefighter's individual account during the resumption period of service and deductions <br/>
<a id="pl.142.20"></a><var>142.20</var>for administrative expenses, if applicable.<br/>
<a id="pl.142.21"></a><var>142.21</var>(j) For defined contribution plans, if a firefighter who had not been paid a service <br/>
<a id="pl.142.22"></a><var>142.22</var>pension returns to active relief association membership under paragraph (b), and who <br/>
<a id="pl.142.23"></a><var>142.23</var>meets the minimum service requirement of section 
         <statute_ref>424A.016, subdivision 3</statute_ref>, based on <br/>
<a id="pl.142.24"></a><var>142.24</var>the firefighter's original and resumption years of service, must have, upon a subsequent <br/>
<a id="pl.142.25"></a><var>142.25</var>cessation of duties, a service pension for the original and resumption service periods <br/>
<a id="pl.142.26"></a><var>142.26</var>calculated to include allocations credited to the firefighter's individual account during <br/>
<a id="pl.142.27"></a><var>142.27</var>the original and resumption period periods of service and deductions for administrative <br/>
<a id="pl.142.28"></a><var>142.28</var>expenses, if applicable, less any amounts previously forfeited under section 
         <statute_ref>424A.016, <br/>
<a id="pl.142.29"></a><var>142.29</var>subdivision 4
         </statute_ref>.<br/>
<a id="pl.142.30"></a><var>142.30</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.6.6.0"></a><a id="pl.142.31"></a><var>142.31</var>    Sec. 6. Minnesota Statutes 2012, section 424A.015, subdivision 1, is amended to read:<br/>
<a id="pl.142.32"></a><var>142.32</var>    Subdivision 1. <b>Separation from active service; exception.</b> (a) No service pension <br/>
<a id="pl.142.33"></a><var>142.33</var>is payable to a person while the person remains an active member of the respective fire <br/>
<a id="pl.142.34"></a><var>142.34</var>department, and a person who is receiving a service pension is not entitled to receive any <br/>
<a id="pl.142.35"></a><var>142.35</var>other benefits from the special fund of the relief association.<br/>
<a id="pl.143.1"></a><var>143.1</var>(b) No relief association as defined in section 
         <statute_ref>424A.001, subdivision 4</statute_ref>, may pay a <br/>
<a id="pl.143.2"></a><var>143.2</var>service pension or disability benefit to a former member of the relief association if that <br/>
<a id="pl.143.3"></a><var>143.3</var>person has not separated from active service with the fire department to which the relief <br/>
<a id="pl.143.4"></a><var>143.4</var>association is directly associated, unless:<br/>
<a id="pl.143.5"></a><var>143.5</var>(1) the person is employed subsequent to retirement by discontinues volunteer <br/>
<a id="pl.143.6"></a><var>143.6</var>firefighter duties with the municipality or the independent nonprofit firefighting <br/>
<a id="pl.143.7"></a><var>143.7</var>corporation, whichever applies, to perform and performs duties within the municipal fire <br/>
<a id="pl.143.8"></a><var>143.8</var>department or corporation on a full-time basis;<br/>
<a id="pl.143.9"></a><var>143.9</var>(2) the governing body of the municipality or of the corporation has filed its <br/>
<a id="pl.143.10"></a><var>143.10</var>determination with the board of trustees of the relief association that the person's <br/>
<a id="pl.143.11"></a><var>143.11</var>experience with and service to the fire department in that person's full-time capacity <br/>
<a id="pl.143.12"></a><var>143.12</var>would be difficult to replace; and<br/>
<a id="pl.143.13"></a><var>143.13</var>(3) the bylaws of the relief association were amended to provide for the payment of <br/>
<a id="pl.143.14"></a><var>143.14</var>a service pension or disability benefit for such full-time employees.<br/>
<a id="pl.143.15"></a><var>143.15</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.6.7.0"></a><a id="pl.143.16"></a><var>143.16</var>    Sec. 7. Minnesota Statutes 2012, section 424A.015, subdivision 4, is amended to read:<br/>
<a id="pl.143.17"></a><var>143.17</var>    Subd. 4. <b>Transfer to individual retirement account.</b> A relief association that is a <br/>
<a id="pl.143.18"></a><var>143.18</var>qualified pension plan under section 401(a) of the Internal Revenue Code, as amended, <br/>
<a id="pl.143.19"></a><var>143.19</var>and that provides a single payment service pension, at the written request of the applicable <br/>
<a id="pl.143.20"></a><var>143.20</var>retiring member or, following the death of the active member, at the written request of the <br/>
<a id="pl.143.21"></a><var>143.21</var>deceased member's surviving spouse, may directly transfer on an institution-to-institution <br/>
<a id="pl.143.22"></a><var>143.22</var>basis the eligible member's lump-sum pension or the death or survivor benefit attributable <br/>
<a id="pl.143.23"></a><var>143.23</var>to the member, whichever applies, to the requesting person's individual retirement account <br/>
<a id="pl.143.24"></a><var>143.24</var>under section 408(a) of the Internal Revenue Code, as amended.<br/>
<a id="pl.143.25"></a><var>143.25</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.6.8.0"></a><a id="pl.143.26"></a><var>143.26</var>    Sec. 8. Minnesota Statutes 2012, section 424A.016, subdivision 6, is amended to read:<br/>
<a id="pl.143.27"></a><var>143.27</var>    Subd. 6. <b>Deferred service pensions.</b> (a) A member of a relief association is entitled <br/>
<a id="pl.143.28"></a><var>143.28</var>to a deferred service pension if the member:<br/>
<a id="pl.143.29"></a><var>143.29</var>    (1) has completed the lesser of the minimum period of active service with the fire <br/>
<a id="pl.143.30"></a><var>143.30</var>department specified in the bylaws or 20 years of active service with the fire department;<br/>
<a id="pl.143.31"></a><var>143.31</var>    (2) has completed at least five years of active membership in the relief association; and<br/>
<a id="pl.143.32"></a><var>143.32</var>    (3) separates from active service and membership and has completed the minimum <br/>
<a id="pl.143.33"></a><var>143.33</var>service and membership requirements in subdivision 2. The requirement that a member <br/>
<a id="pl.144.1"></a><var>144.1</var>separate from active service and membership is waived for persons who have discontinued <br/>
<a id="pl.144.2"></a><var>144.2</var>their volunteer firefighter duties and who are employed on a full-time basis under section <br/>
<statute_ref><a id="pl.144.3"></a><var>144.3</var>424A.015, subdivision 1
         </statute_ref>.<br/>
<a id="pl.144.4"></a><var>144.4</var>    (b) The deferred service pension is payable when the former member reaches at <br/>
<a id="pl.144.5"></a><var>144.5</var>least age 50, or at least the minimum age specified in the bylaws governing the relief <br/>
<a id="pl.144.6"></a><var>144.6</var>association if that age is greater than age 50, and when the former member makes a valid <br/>
<a id="pl.144.7"></a><var>144.7</var>written application.<br/>
<a id="pl.144.8"></a><var>144.8</var>    (c) A defined contribution relief association may, if its governing bylaws so provide, <br/>
<a id="pl.144.9"></a><var>144.9</var>credit interest or additional investment performance on the deferred lump-sum service <br/>
<a id="pl.144.10"></a><var>144.10</var>pension during the period of deferral. If provided for in the bylaws, the interest must be <br/>
<a id="pl.144.11"></a><var>144.11</var>paid:<br/>
<a id="pl.144.12"></a><var>144.12</var>(1) at the investment performance rate actually earned on that portion of the assets <br/>
<a id="pl.144.13"></a><var>144.13</var>if the deferred benefit amount is invested by the relief association in a separate account <br/>
<a id="pl.144.14"></a><var>144.14</var>established and maintained by the relief association;<br/>
<a id="pl.144.15"></a><var>144.15</var>(2) at the investment performance rate actually earned on that portion of the assets <br/>
<a id="pl.144.16"></a><var>144.16</var>if the deferred benefit amount is invested in a separate investment vehicle held by the <br/>
<a id="pl.144.17"></a><var>144.17</var>relief association; or<br/>
<a id="pl.144.18"></a><var>144.18</var>(3) at the investment return on the assets of the special fund of the defined contribution <br/>
<a id="pl.144.19"></a><var>144.19</var>volunteer firefighter relief association in proportion to the share of the assets of the special <br/>
<a id="pl.144.20"></a><var>144.20</var>fund to the credit of each individual deferred member account through the accounting date <br/>
<a id="pl.144.21"></a><var>144.21</var>on which the investment return is recognized by and credited to the special fund.<br/>
<a id="pl.144.22"></a><var>144.22</var>    (d) Unless the bylaws of a relief association that has elected to pay interest or <br/>
<a id="pl.144.23"></a><var>144.23</var>additional investment performance on deferred lump-sum service pensions under <br/>
<a id="pl.144.24"></a><var>144.24</var>paragraph (c) specifies a different interest or additional investment performance method, <br/>
<a id="pl.144.25"></a><var>144.25</var>including the interest or additional investment performance period starting date and ending <br/>
<a id="pl.144.26"></a><var>144.26</var>date, the interest or additional investment performance on a deferred service pension <br/>
<a id="pl.144.27"></a><var>144.27</var>is creditable as follows:<br/>
<a id="pl.144.28"></a><var>144.28</var>(1) for a relief association that has elected to pay interest or additional investment <br/>
<a id="pl.144.29"></a><var>144.29</var>performance under paragraph (c), clause (1) or (3), beginning on the date that the <br/>
<a id="pl.144.30"></a><var>144.30</var>member separates from active service and membership and ending on the accounting <br/>
<a id="pl.144.31"></a><var>144.31</var>date immediately before the deferred member commences receipt of the deferred service <br/>
<a id="pl.144.32"></a><var>144.32</var>pension; or<br/>
<a id="pl.144.33"></a><var>144.33</var>(2) for a relief association that has elected to pay interest or additional investment <br/>
<a id="pl.144.34"></a><var>144.34</var>performance under paragraph (c), clause (2), beginning on the date that the member <br/>
<a id="pl.144.35"></a><var>144.35</var>separates from active service and membership and ending on the date that the separate <br/>
<a id="pl.145.1"></a><var>145.1</var>investment vehicle is valued immediately before the date on which the deferred member <br/>
<a id="pl.145.2"></a><var>145.2</var>commences receipt of the deferred service pension.<br/>
<a id="pl.145.3"></a><var>145.3</var>(e) The deferred service pension is governed by and must be calculated under <br/>
<a id="pl.145.4"></a><var>145.4</var>the general statute, special law, relief association articles of incorporation, and relief <br/>
<a id="pl.145.5"></a><var>145.5</var>association bylaw provisions applicable on the date on which the member separated from <br/>
<a id="pl.145.6"></a><var>145.6</var>active service with the fire department and active membership in the relief association.<br/>
<a id="pl.145.7"></a><var>145.7</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.6.9.0"></a><a id="pl.145.8"></a><var>145.8</var>    Sec. 9. Minnesota Statutes 2012, section 424A.02, subdivision 7, is amended to read:<br/>
<a id="pl.145.9"></a><var>145.9</var>    Subd. 7. <b>Deferred service pensions.</b> (a) A member of a defined benefit relief <br/>
<a id="pl.145.10"></a><var>145.10</var>association is entitled to a deferred service pension if the member:<br/>
<a id="pl.145.11"></a><var>145.11</var>    (1) has completed the lesser of either the minimum period of active service with the <br/>
<a id="pl.145.12"></a><var>145.12</var>fire department specified in the bylaws or 20 years of active service with the fire department;<br/>
<a id="pl.145.13"></a><var>145.13</var>    (2) has completed at least five years of active membership in the relief association; and<br/>
<a id="pl.145.14"></a><var>145.14</var>    (3) separates from active service and membership and has completed the minimum <br/>
<a id="pl.145.15"></a><var>145.15</var>service and membership requirements in subdivision 1. The requirement that a member <br/>
<a id="pl.145.16"></a><var>145.16</var>separate from active service and membership is waived for persons who have discontinued <br/>
<a id="pl.145.17"></a><var>145.17</var>their volunteer firefighter duties and who are employed on a full-time basis under section <br/>
<statute_ref><a id="pl.145.18"></a><var>145.18</var>424A.015, subdivision 1
         </statute_ref>.<br/>
<a id="pl.145.19"></a><var>145.19</var>    (b) The deferred service pension is payable when the former member reaches at <br/>
<a id="pl.145.20"></a><var>145.20</var>least age 50, or at least the minimum age specified in the bylaws governing the relief <br/>
<a id="pl.145.21"></a><var>145.21</var>association if that age is greater than age 50, and when the former member makes a valid <br/>
<a id="pl.145.22"></a><var>145.22</var>written application.<br/>
<a id="pl.145.23"></a><var>145.23</var>    (c) A defined benefit relief association that provides a lump-sum service pension <br/>
<a id="pl.145.24"></a><var>145.24</var>governed by subdivision 3 may, when its governing bylaws so provide, pay interest on the <br/>
<a id="pl.145.25"></a><var>145.25</var>deferred lump-sum service pension during the period of deferral. If provided for in the <br/>
<a id="pl.145.26"></a><var>145.26</var>bylaws, interest must be paid in one of the following manners:<br/>
<a id="pl.145.27"></a><var>145.27</var>    (1) at the investment performance rate actually earned on that portion of the assets <br/>
<a id="pl.145.28"></a><var>145.28</var>if the deferred benefit amount is invested by the relief association in a separate account <br/>
<a id="pl.145.29"></a><var>145.29</var>established and maintained by the relief association;<br/>
<a id="pl.145.30"></a><var>145.30</var>(2) at the investment performance rate actually earned on that portion of the assets <br/>
<a id="pl.145.31"></a><var>145.31</var>if the deferred benefit amount is invested in a separate investment vehicle held by the <br/>
<a id="pl.145.32"></a><var>145.32</var>relief association; or<br/>
<a id="pl.145.33"></a><var>145.33</var>    (3) at an interest rate of up to five percent, compounded annually, as set by the board <br/>
<a id="pl.145.34"></a><var>145.34</var>of directors and approved as provided in subdivision 10 trustees.<br/>
<a id="pl.146.1"></a><var>146.1</var>(d) Any change in the interest rate set by the board of directors under paragraph (c), <br/>
<a id="pl.146.2"></a><var>146.2</var>clause (3), must be ratified by the governing body of the municipality served by the fire <br/>
<a id="pl.146.3"></a><var>146.3</var>department to which the relief association is directly associated, or by the independent <br/>
<a id="pl.146.4"></a><var>146.4</var>nonprofit firefighting corporation, as applicable.<br/>
<a id="pl.146.5"></a><var>146.5</var>    (d) (e) Interest under paragraph (c), clause (3), is payable beginning on the January <br/>
<a id="pl.146.6"></a><var>146.6</var>1 next following the date on which the municipality has approved the deferred service <br/>
<a id="pl.146.7"></a><var>146.7</var>pension interest rate established as set by the board of trustees was ratified by the governing <br/>
<a id="pl.146.8"></a><var>146.8</var>body of the municipality served by the fire department to which the relief association is <br/>
<a id="pl.146.9"></a><var>146.9</var>directly associated, or by the independent nonprofit firefighting corporation, as applicable.<br/>
<a id="pl.146.10"></a><var>146.10</var>    (e) (f) Unless the bylaws of a relief association that has elected to pay interest <br/>
<a id="pl.146.11"></a><var>146.11</var>or additional investment performance on deferred lump-sum service pensions under <br/>
<a id="pl.146.12"></a><var>146.12</var>paragraph (c) specifies a different interest or additional investment performance method, <br/>
<a id="pl.146.13"></a><var>146.13</var>including the interest or additional investment performance period starting date and ending <br/>
<a id="pl.146.14"></a><var>146.14</var>date, the interest or additional investment performance on a deferred service pension <br/>
<a id="pl.146.15"></a><var>146.15</var>is creditable as follows:<br/>
<a id="pl.146.16"></a><var>146.16</var>(1) for a relief association that has elected to pay interest or additional investment <br/>
<a id="pl.146.17"></a><var>146.17</var>performance under paragraph (c), clause (1) or (3), beginning on the first day of the <br/>
<a id="pl.146.18"></a><var>146.18</var>month next following the date that on which the member separates from active service <br/>
<a id="pl.146.19"></a><var>146.19</var>and membership and ending on the accounting date last day of the month immediately <br/>
<a id="pl.146.20"></a><var>146.20</var>before the month in which the deferred member commences receipt of the deferred <br/>
<a id="pl.146.21"></a><var>146.21</var>service pension; or<br/>
<a id="pl.146.22"></a><var>146.22</var>(2) for a relief association that has elected to pay interest or additional investment <br/>
<a id="pl.146.23"></a><var>146.23</var>performance under paragraph (c), clause (2), beginning on the date that the member <br/>
<a id="pl.146.24"></a><var>146.24</var>separates from active service and membership and ending on the date that the separate <br/>
<a id="pl.146.25"></a><var>146.25</var>investment vehicle is valued immediately before the date on which the deferred member <br/>
<a id="pl.146.26"></a><var>146.26</var>commences receipt of the deferred service pension.<br/>
<a id="pl.146.27"></a><var>146.27</var>(f) (g) For a deferred service pension that is transferred to a separate account <br/>
<a id="pl.146.28"></a><var>146.28</var>established and maintained by the relief association or separate investment vehicle held <br/>
<a id="pl.146.29"></a><var>146.29</var>by the relief association, the deferred member bears the full investment risk subsequent <br/>
<a id="pl.146.30"></a><var>146.30</var>to transfer and in calculating the accrued liability of the volunteer firefighters relief <br/>
<a id="pl.146.31"></a><var>146.31</var>association that pays a lump-sum service pension, the accrued liability for deferred service <br/>
<a id="pl.146.32"></a><var>146.32</var>pensions is equal to the separate relief association account balance or the fair market value <br/>
<a id="pl.146.33"></a><var>146.33</var>of the separate investment vehicle held by the relief association.<br/>
<a id="pl.146.34"></a><var>146.34</var>    (g) (h) The deferred service pension is governed by and must be calculated under <br/>
<a id="pl.146.35"></a><var>146.35</var>the general statute, special law, relief association articles of incorporation, and relief <br/>
<a id="pl.147.1"></a><var>147.1</var>association bylaw provisions applicable on the date on which the member separated from <br/>
<a id="pl.147.2"></a><var>147.2</var>active service with the fire department and active membership in the relief association.<br/>
<a id="pl.147.3"></a><var>147.3</var><b>EFFECTIVE DATE.</b>This section is effective January 1, 2014, with respect to the <br/>
<a id="pl.147.4"></a><var>147.4</var>amendments to paragraphs (c), (d), and (e), and is effective retroactively from January <br/>
<a id="pl.147.5"></a><var>147.5</var>1, 2013, with respect to the amendments to paragraph (f).<br/>
<br/>
<a id="bill.6.10.0"></a><a id="pl.147.6"></a><var>147.6</var>    Sec. 10. Minnesota Statutes 2012, section 424A.10, subdivision 1, is amended to read:<br/>
<a id="pl.147.7"></a><var>147.7</var>    Subdivision 1. <b> Definitions.</b> For purposes of this section:<br/>
<a id="pl.147.8"></a><var>147.8</var>    (1) "qualified recipient" means an individual who receives a lump-sum distribution <br/>
<a id="pl.147.9"></a><var>147.9</var>of pension or retirement benefits from a volunteer firefighters' relief association or from <br/>
<a id="pl.147.10"></a><var>147.10</var>the voluntary statewide lump-sum volunteer firefighter retirement plan for service that the <br/>
<a id="pl.147.11"></a><var>147.11</var>individual has performed as a volunteer firefighter;<br/>
<a id="pl.147.12"></a><var>147.12</var>    (2) "survivor of a deceased active or deferred volunteer firefighter" means the <br/>
<a id="pl.147.13"></a><var>147.13</var>surviving spouse of a deceased active or deferred volunteer firefighter under section <br/>
<a id="pl.147.14"></a><var>147.14</var><statute_ref>424A.001, subdivision 6</statute_ref>, or, if none, the surviving child or children of a deceased active <br/>
<a id="pl.147.15"></a><var>147.15</var>or deferred volunteer firefighter;<br/>
<a id="pl.147.16"></a><var>147.16</var>    (3) "active volunteer firefighter" means a person who regularly renders fire <br/>
<a id="pl.147.17"></a><var>147.17</var>suppression service for a municipal fire department or an independent nonprofit firefighting <br/>
<a id="pl.147.18"></a><var>147.18</var>corporation, who has met the statutory and other requirements for relief association <br/>
<a id="pl.147.19"></a><var>147.19</var>membership, and who is deemed by the relief association under law and its bylaws to be a <br/>
<a id="pl.147.20"></a><var>147.20</var>fully qualified member of the relief association or from the voluntary statewide lump-sum <br/>
<a id="pl.147.21"></a><var>147.21</var>volunteer firefighter retirement plan for at least one month; and<br/>
<a id="pl.147.22"></a><var>147.22</var>    (4) "deferred volunteer firefighter" means a former active volunteer firefighter who <br/>
<a id="pl.147.23"></a><var>147.23</var>terminated active firefighting service, has sufficient service credit from the applicable relief <br/>
<a id="pl.147.24"></a><var>147.24</var>association or from the voluntary statewide lump-sum volunteer firefighter retirement plan <br/>
<a id="pl.147.25"></a><var>147.25</var>to be entitled to a service pension under the bylaws of the relief association, but has not <br/>
<a id="pl.147.26"></a><var>147.26</var>applied for or has not received the service pension.<br/>
<a id="pl.147.27"></a><var>147.27</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.6.11.0"></a><a id="pl.147.28"></a><var>147.28</var>    Sec. 11. Minnesota Statutes 2012, section 424A.10, subdivision 2, is amended to read:<br/>
<a id="pl.147.29"></a><var>147.29</var>    Subd. 2. <b>Payment of supplemental benefit.</b> (a) Upon the payment by a volunteer <br/>
<a id="pl.147.30"></a><var>147.30</var>firefighters' relief association or by the voluntary statewide lump-sum volunteer firefighter <br/>
<a id="pl.147.31"></a><var>147.31</var>retirement plan of a lump-sum distribution to a qualified recipient, the association must <br/>
<a id="pl.147.32"></a><var>147.32</var>pay a supplemental benefit to the qualified recipient. Notwithstanding any law to the <br/>
<a id="pl.147.33"></a><var>147.33</var>contrary, the relief association must pay the supplemental benefit out of its special fund <br/>
<a id="pl.148.1"></a><var>148.1</var>and the voluntary statewide lump-sum volunteer firefighter retirement plan must pay <br/>
<a id="pl.148.2"></a><var>148.2</var>the supplemental benefit out of the voluntary statewide lump-sum volunteer firefighter <br/>
<a id="pl.148.3"></a><var>148.3</var>retirement plan. This benefit is an amount equal to ten percent of the regular lump-sum <br/>
<a id="pl.148.4"></a><var>148.4</var>distribution that is paid on the basis of the recipient's service as a volunteer firefighter. <br/>
<a id="pl.148.5"></a><var>148.5</var>In no case may the amount of the supplemental benefit exceed $1,000. A supplemental <br/>
<a id="pl.148.6"></a><var>148.6</var>benefit under this paragraph may not be paid to a survivor of a deceased active or deferred <br/>
<a id="pl.148.7"></a><var>148.7</var>volunteer firefighter in that capacity.<br/>
<a id="pl.148.8"></a><var>148.8</var>    (b) Upon the payment by a relief association or the retirement plan of a lump-sum <br/>
<a id="pl.148.9"></a><var>148.9</var>survivor benefit to a survivor of a deceased active volunteer firefighter or of a deceased <br/>
<a id="pl.148.10"></a><var>148.10</var>deferred volunteer firefighter, the association may must pay a supplemental survivor <br/>
<a id="pl.148.11"></a><var>148.11</var>benefit to the survivor of the deceased active or deferred volunteer firefighter from the <br/>
<a id="pl.148.12"></a><var>148.12</var>special fund of the relief association if its articles of incorporation or bylaws so provide<br/>
<a id="pl.148.13"></a><var>148.13</var> and the retirement plan may must pay a supplemental survivor benefit to the survivor of <br/>
<a id="pl.148.14"></a><var>148.14</var>the deceased active or deferred volunteer firefighter from the retirement fund if chapter <br/>
<a id="pl.148.15"></a><var>148.15</var>353G so provides. The amount of the supplemental survivor benefit is 20 percent of the <br/>
<a id="pl.148.16"></a><var>148.16</var>survivor benefit, but not to exceed $2,000.<br/>
<a id="pl.148.17"></a><var>148.17</var>    (c) An individual may receive a supplemental benefit under paragraph (a) or under <br/>
<a id="pl.148.18"></a><var>148.18</var>paragraph (b), but not under both paragraphs with respect to one lump-sum volunteer <br/>
<a id="pl.148.19"></a><var>148.19</var>firefighter benefit.<br/>
<a id="pl.148.20"></a><var>148.20</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.6.12.0"></a><a id="pl.148.21"></a><var>148.21</var>    Sec. 12. <b>WHITE BEAR LAKE VOLUNTEER FIRE DEPARTMENT RELIEF </b><br/>
<a id="pl.148.22"></a><var>148.22</var><b>ASSOCIATION; RETIREE DEATH BENEFIT.</b><br/>
<a id="pl.148.23"></a><var>148.23</var>Notwithstanding any provision of Minnesota Statutes, section 424A.05, subdivision <br/>
<a id="pl.148.24"></a><var>148.24</var>3, clause (4), to the contrary, the White Bear Lake Volunteer Fire Department Relief <br/>
<a id="pl.148.25"></a><var>148.25</var>Association may provide, if its bylaws so provide, for the payment of a $2,000 lump sum <br/>
<a id="pl.148.26"></a><var>148.26</var>death benefit from the special fund of the relief association to the estate of a person who <br/>
<a id="pl.148.27"></a><var>148.27</var>was a member of the relief association, who rendered at least 20 years of firefighting <br/>
<a id="pl.148.28"></a><var>148.28</var>service in the fire department and membership in the relief association, who retired <br/>
<a id="pl.148.29"></a><var>148.29</var>before January 1, 2009, who received a monthly benefit service pension from the relief <br/>
<a id="pl.148.30"></a><var>148.30</var>association for the month in which this section became effective, and who died after the <br/>
<a id="pl.148.31"></a><var>148.31</var>effective date of the bylaw amendment that implements the authority under this section.<br/>
<a id="pl.148.32"></a><var>148.32</var><b>EFFECTIVE DATE.</b>This section is effective the day after the governing body of <br/>
<a id="pl.148.33"></a><var>148.33</var>the city of White Bear Lake and its chief clerical officer timely complete their compliance <br/>
<a id="pl.148.34"></a><var>148.34</var>with Minnesota Statutes, section 645.021, subdivisions 2 and 3.<br/>
<br/>
<a id="bill.6.13.0"></a><a id="pl.149.1"></a><var>149.1</var>    Sec. 13. <b> REPEALER.</b><br/>
<a id="pl.149.2"></a><var>149.2</var>Minnesota Statutes 2012, section 424A.10, subdivision 5, is repealed.<br/>
<a id="pl.149.3"></a><var>149.3</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.7.0.0"></a>

<a id="bill.7.1.0"></a><a id="pl.149.6"></a><var>149.6</var>    Section 1. Minnesota Statutes 2012, section 352.01, subdivision 2a, is amended to read:<br/>
<a id="pl.149.7"></a><var>149.7</var>    Subd. 2a. <b>Included employees.</b> (a) "State employee" includes:<br/>
<a id="pl.149.8"></a><var>149.8</var>    (1) employees of the Minnesota Historical Society;<br/>
<a id="pl.149.9"></a><var>149.9</var>    (2) employees of the State Horticultural Society;<br/>
<a id="pl.149.10"></a><var>149.10</var>    (3) employees of the Minnesota Crop Improvement Association;<br/>
<a id="pl.149.11"></a><var>149.11</var>    (4) employees of the adjutant general whose salaries are paid from federal funds and <br/>
<a id="pl.149.12"></a><var>149.12</var>who are not covered by any federal civilian employees retirement system;<br/>
<a id="pl.149.13"></a><var>149.13</var>    (5) employees of the Minnesota State Colleges and Universities who are employed <br/>
<a id="pl.149.14"></a><var>149.14</var>under the university or college activities program;<br/>
<a id="pl.149.15"></a><var>149.15</var>    (6) currently contributing employees covered by the system who are temporarily <br/>
<a id="pl.149.16"></a><var>149.16</var>employed by the legislature during a legislative session or any currently contributing <br/>
<a id="pl.149.17"></a><var>149.17</var>employee employed for any special service as defined in subdivision 2b, clause (8);<br/>
<a id="pl.149.18"></a><var>149.18</var>    (7) employees of the legislature who are appointed without a limit on the duration <br/>
<a id="pl.149.19"></a><var>149.19</var>of their employment and persons employed or designated by the legislature or by a <br/>
<a id="pl.149.20"></a><var>149.20</var>legislative committee or commission or other competent authority to conduct a special <br/>
<a id="pl.149.21"></a><var>149.21</var>inquiry, investigation, examination, or installation;<br/>
<a id="pl.149.22"></a><var>149.22</var>    (8) trainees who are employed on a full-time established training program <br/>
<a id="pl.149.23"></a><var>149.23</var>performing the duties of the classified position for which they will be eligible to receive <br/>
<a id="pl.149.24"></a><var>149.24</var>immediate appointment at the completion of the training period;<br/>
<a id="pl.149.25"></a><var>149.25</var>    (9) employees of the Minnesota Safety Council;<br/>
<a id="pl.149.26"></a><var>149.26</var>    (10) any employees who are on authorized leave of absence from the Transit <br/>
<a id="pl.149.27"></a><var>149.27</var>Operating Division of the former Metropolitan Transit Commission and who are employed <br/>
<a id="pl.149.28"></a><var>149.28</var>by the labor organization which is the exclusive bargaining agent representing employees <br/>
<a id="pl.149.29"></a><var>149.29</var>of the Transit Operating Division;<br/>
<a id="pl.149.30"></a><var>149.30</var>    (11) employees of the Metropolitan Council, Metropolitan Parks and Open Space <br/>
<a id="pl.149.31"></a><var>149.31</var>Commission, Metropolitan Sports Facilities Commission, or Metropolitan Mosquito <br/>
<a id="pl.149.32"></a><var>149.32</var>Control Commission unless excluded under subdivision 2b or are covered by another <br/>
<a id="pl.149.33"></a><var>149.33</var>public pension fund or plan under section 
         <statute_ref>473.415, subdivision 3</statute_ref>;<br/>
<a id="pl.149.34"></a><var>149.34</var>    (12) judges of the Tax Court;<br/>
<a id="pl.150.1"></a><var>150.1</var>    (13) personnel who were employed on June 30, 1992, by the University of <br/>
<a id="pl.150.2"></a><var>150.2</var>Minnesota in the management, operation, or maintenance of its heating plant facilities, <br/>
<a id="pl.150.3"></a><var>150.3</var>whose employment transfers to an employer assuming operation of the heating plant <br/>
<a id="pl.150.4"></a><var>150.4</var>facilities, so long as the person is employed at the University of Minnesota heating plant <br/>
<a id="pl.150.5"></a><var>150.5</var>by that employer or by its successor organization;<br/>
<a id="pl.150.6"></a><var>150.6</var>    (14) personnel who are employed as seasonal employees in the classified or <br/>
<a id="pl.150.7"></a><var>150.7</var>unclassified service;<br/>
<a id="pl.150.8"></a><var>150.8</var>    (15) persons who are employed by the Department of Commerce as a peace officer <br/>
<a id="pl.150.9"></a><var>150.9</var>in the Insurance Fraud Prevention Division under section 
         <statute_ref>45.0135</statute_ref> who have attained the <br/>
<a id="pl.150.10"></a><var>150.10</var>mandatory retirement age specified in section 
         <statute_ref>43A.34, subdivision 4</statute_ref>;<br/>
<a id="pl.150.11"></a><var>150.11</var>    (16) employees of the University of Minnesota unless excluded under subdivision <br/>
<a id="pl.150.12"></a><var>150.12</var>2b, clause (3);<br/>
<a id="pl.150.13"></a><var>150.13</var>    (17) employees of the Middle Management Association whose employment began <br/>
<a id="pl.150.14"></a><var>150.14</var>after July 1, 2007, and to whom section 
         <statute_ref>352.029</statute_ref> does not apply;<br/>
<a id="pl.150.15"></a><var>150.15</var>    (18) employees of the Minnesota Government Engineers Council to whom section <br/>
<statute_ref><a id="pl.150.16"></a><var>150.16</var>352.029
         </statute_ref> does not apply; and<br/>
<a id="pl.150.17"></a><var>150.17</var>(19) employees of the Minnesota Sports Facilities Authority.; and<br/>
<a id="pl.150.18"></a><var>150.18</var>(20) employees of the Minnesota Association of Professional Employees.<br/>
<a id="pl.150.19"></a><var>150.19</var>    (b) Employees specified in paragraph (a), clause (13), are included employees under <br/>
<a id="pl.150.20"></a><var>150.20</var>paragraph (a) if employer and employee contributions are made in a timely manner in the <br/>
<a id="pl.150.21"></a><var>150.21</var>amounts required by section 
         <statute_ref>352.04</statute_ref>. Employee contributions must be deducted from <br/>
<a id="pl.150.22"></a><var>150.22</var>salary. Employer contributions are the sole obligation of the employer assuming operation <br/>
<a id="pl.150.23"></a><var>150.23</var>of the University of Minnesota heating plant facilities or any successor organizations to <br/>
<a id="pl.150.24"></a><var>150.24</var>that employer.<br/>
<a id="pl.150.25"></a><var>150.25</var><b>EFFECTIVE DATE.</b>(a) This section is effective July 1, 2013.<br/>
<a id="pl.150.26"></a><var>150.26</var>(b) The membership inclusion under paragraph (a), clause (20), does not apply to <br/>
<a id="pl.150.27"></a><var>150.27</var>a person who is receiving an age and service retirement annuity from the general state <br/>
<a id="pl.150.28"></a><var>150.28</var>employees retirement plan of the Minnesota State Retirement System on June 30, 2013.<br/>
<br/>
<a id="bill.7.2.0"></a><a id="pl.150.29"></a><var>150.29</var>    Sec. 2. Minnesota Statutes 2012, section 352.029, subdivision 1, is amended to read:<br/>
<a id="pl.150.30"></a><var>150.30</var>    Subdivision 1. <b>Qualifications.</b> Unless already specifically included under section <br/>
<a id="pl.150.31"></a><var>150.31</var>352.01, subdivision 2a, or unless specifically excluded under section 
         <statute_ref>352.01, subdivision <br/>
<a id="pl.150.32"></a><var>150.32</var>2b
         </statute_ref>, a state employee on leave of absence without pay to provide service as an employee <br/>
<a id="pl.150.33"></a><var>150.33</var>or officer of a labor organization that is an exclusive bargaining agent representing state <br/>
<a id="pl.150.34"></a><var>150.34</var>employees may elect under subdivision 2 to be covered by the general state employees <br/>
<a id="pl.151.1"></a><var>151.1</var>retirement plan of the Minnesota State Retirement System for service with the labor <br/>
<a id="pl.151.2"></a><var>151.2</var>organization, subject to the limitations set forth in subdivisions 2a and 2b.<br/>
<a id="pl.151.3"></a><var>151.3</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2013.<br/>
<br/>
<a id="bill.7.3.0"></a><a id="pl.151.4"></a><var>151.4</var>    Sec. 3. Minnesota Statutes 2012, section 352.029, subdivision 2a, is amended to read:<br/>
<a id="pl.151.5"></a><var>151.5</var>    Subd. 2a. <b>Limitations on salary for benefits and contributions.</b> (a) The covered <br/>
<a id="pl.151.6"></a><var>151.6</var>salary for a labor organization employee who is a member under section 352.01, <br/>
<a id="pl.151.7"></a><var>151.7</var>subdivision 2a, paragraph (a), or who qualifies for membership under this section or <br/>
<a id="pl.151.8"></a><var>151.8</var>section 
         <statute_ref>352.75</statute_ref> is limited to the lesser of:<br/>
<a id="pl.151.9"></a><var>151.9</var>(1) the employee's actual salary as defined under section 
         <statute_ref>352.01, subdivision 13</statute_ref>; or<br/>
<a id="pl.151.10"></a><var>151.10</var>(2) 75 percent of the salary of the governor as set under section 
         <statute_ref>15A.082</statute_ref>.<br/>
<a id="pl.151.11"></a><var>151.11</var>(b) The limited covered salary determined under this subdivision must be used in <br/>
<a id="pl.151.12"></a><var>151.12</var>determining employee, employer, and employer additional contributions under section <br/>
<statute_ref><a id="pl.151.13"></a><var>151.13</var>352.04
         </statute_ref>, subdivisions 2 and 3, and in determining retirement annuities and other benefits <br/>
<a id="pl.151.14"></a><var>151.14</var>under this chapter and chapter 356.<br/>
<a id="pl.151.15"></a><var>151.15</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2013.<br/>
<br/>
<a id="bill.7.4.0"></a><a id="pl.151.16"></a><var>151.16</var>    Sec. 4. Minnesota Statutes 2012, section 352.029, subdivision 2b, is amended to read:<br/>
<a id="pl.151.17"></a><var>151.17</var>    Subd. 2b. <b>Earning restrictions apply.</b> A retirement annuity is only payable, if the <br/>
<a id="pl.151.18"></a><var>151.18</var>person has met any other applicable requirements, upon the termination of employment by <br/>
<a id="pl.151.19"></a><var>151.19</var>the labor organization by the person who is a member under section 352.01, subdivision <br/>
<a id="pl.151.20"></a><var>151.20</var>2a, paragraph (a), or who elected coverage under subdivision 1 of employment by the <br/>
<a id="pl.151.21"></a><var>151.21</var>labor organization. The reemployed annuitant earnings limitation set forth in section <br/>
<statute_ref><a id="pl.151.22"></a><var>151.22</var>352.115, subdivision 10
         </statute_ref>, applies in the event that the person who is a member under <br/>
<a id="pl.151.23"></a><var>151.23</var>section 352.01, subdivision 2a, paragraph (a), or who elected coverage under subdivision <br/>
<a id="pl.151.24"></a><var>151.24</var>1 retires and is subsequently reemployed while an annuitant by the labor organization or <br/>
<a id="pl.151.25"></a><var>151.25</var>by any other entity employing persons who are covered by the Minnesota State Retirement <br/>
<a id="pl.151.26"></a><var>151.26</var>System by virtue of that employment.<br/>
<a id="pl.151.27"></a><var>151.27</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2013.<br/>
<br/>
<a id="bill.7.5.0"></a><a id="pl.151.28"></a><var>151.28</var>    Sec. 5. Minnesota Statutes 2012, section 352.029, subdivision 3, is amended to read:<br/>
<a id="pl.151.29"></a><var>151.29</var>    Subd. 3. <b>Contributions.</b> The employee and employer contributions required <br/>
<a id="pl.151.30"></a><var>151.30</var>by section 
         <statute_ref>352.04</statute_ref>, or by section 
         <statute_ref>352.92</statute_ref> for employees covered by section 
         <statute_ref>352.91</statute_ref>, are <br/>
<a id="pl.151.31"></a><var>151.31</var>the obligation of the employee who is a member under section 352.01, subdivision 2a, <br/>
<a id="pl.151.32"></a><var>151.32</var>paragraph (a), or who chooses coverage under this section. However, the employing <br/>
<a id="pl.152.1"></a><var>152.1</var>labor organization may pay the employer contributions. Contributions made by the <br/>
<a id="pl.152.2"></a><var>152.2</var>employee must be made by salary deduction. The employing labor organization shall <br/>
<a id="pl.152.3"></a><var>152.3</var>pay all contributions to the system as required by section 
         <statute_ref>352.04</statute_ref>, or by section 
         <statute_ref>352.92</statute_ref> <br/>
<a id="pl.152.4"></a><var>152.4</var>for employees covered by section 
         <statute_ref>352.91</statute_ref>.<br/>
<a id="pl.152.5"></a><var>152.5</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2013.<br/>
<br/>
<a id="bill.7.6.0"></a><a id="pl.152.6"></a><var>152.6</var>    Sec. 6. Minnesota Statutes 2012, section 352.029, subdivision 5, is amended to read:<br/>
<a id="pl.152.7"></a><var>152.7</var>    Subd. 5. <b>Board membership excluded.</b> Employees of a labor organization who <br/>
<a id="pl.152.8"></a><var>152.8</var>become members of the system under section 352.01, subdivision 2a, paragraph (a), or <br/>
<a id="pl.152.9"></a><var>152.9</var>under this section are not eligible for election to the board of directors.<br/>
<a id="pl.152.10"></a><var>152.10</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2013.<br/>
<br/>
<a id="bill.7.7.0"></a><a id="pl.152.11"></a><var>152.11</var>    Sec. 7. <b>[356.408] TERMINATION OF SURVIVOR DESIGNATION.</b><br/>
<a id="pl.152.12"></a><var>152.12</var>    Subdivision 1. <b>Authorization to terminate optional annuity form.</b> A public <br/>
<a id="pl.152.13"></a><var>152.13</var>pension plan retired member receiving a joint and survivor retirement annuity or a person <br/>
<a id="pl.152.14"></a><var>152.14</var>receiving a joint and survivor disability benefit from a plan listed in section 356.30, <br/>
<a id="pl.152.15"></a><var>152.15</var>subdivision 3, and the designated survivor of that person may mutually agree to terminate <br/>
<a id="pl.152.16"></a><var>152.16</var>the survivor designation by filing a termination statement on a form and in the manner <br/>
<a id="pl.152.17"></a><var>152.17</var>specified by the chief administrative officer of the applicable public pension plan. Upon <br/>
<a id="pl.152.18"></a><var>152.18</var>filing a valid termination statement accepted by the chief administrative officer, the rights <br/>
<a id="pl.152.19"></a><var>152.19</var>of the designated survivor to receive a benefit upon death of the plan retired or disabled <br/>
<a id="pl.152.20"></a><var>152.20</var>annuitant are terminated, and the retired or disabled annuitant must receive a normal <br/>
<a id="pl.152.21"></a><var>152.21</var>single-life annuity. <br/>
<a id="pl.152.22"></a><var>152.22</var>    Subd. 2. <b>Revised annuity form.</b> The replacement single life annuity must be <br/>
<a id="pl.152.23"></a><var>152.23</var>actuarially equivalent to the joint and survivor annuity as of the first day of the month <br/>
<a id="pl.152.24"></a><var>152.24</var>following acceptance of the valid termination statement by the chief administrative officer <br/>
<a id="pl.152.25"></a><var>152.25</var>and payment of this revised prospective annuity begins on that same date.<br/>
<a id="pl.152.26"></a><var>152.26</var>    Subd. 3. <b>Application.</b> This section does not apply if the designated survivor is the <br/>
<a id="pl.152.27"></a><var>152.27</var>spouse or former spouse of the plan member.<br/>
<a id="pl.152.28"></a><var>152.28</var>    Subd. 4. <b>Termination statement form requirements.</b> The annuity form <br/>
<a id="pl.152.29"></a><var>152.29</var>termination statements must be in written form and must be notarized. Before accepting <br/>
<a id="pl.152.30"></a><var>152.30</var>any signed form or forms, the chief administrative officer of the applicable pension plan <br/>
<a id="pl.152.31"></a><var>152.31</var>must offer counseling to the retired or disabled annuitant and the designated survivor <br/>
<a id="pl.152.32"></a><var>152.32</var>regarding the implications of the annuity form waiver. The forms must indicate that this <br/>
<a id="pl.153.1"></a><var>153.1</var>counseling has been offered and either has been completed or has been waived by the <br/>
<a id="pl.153.2"></a><var>153.2</var>retired or disabled annuitant and the designated survivor.<br/>
<a id="pl.153.3"></a><var>153.3</var>    Subd. 5. <b>Prohibition against further annuity form revisions.</b> No retired or <br/>
<a id="pl.153.4"></a><var>153.4</var>disabled annuitant who waives the annuity form under this section may further revise <br/>
<a id="pl.153.5"></a><var>153.5</var>the annuity form at any later date.<br/>
<a id="pl.153.6"></a><var>153.6</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.7.8.0"></a><a id="pl.153.7"></a><var>153.7</var>    Sec. 8. Minnesota Statutes 2012, section 356.48, subdivision 1, is amended to read:<br/>
<a id="pl.153.8"></a><var>153.8</var>    Subdivision 1. <b>Covered plans.</b> This section applies to the following retirement plans:<br/>
<a id="pl.153.9"></a><var>153.9</var>(1) the general state employees retirement plan of the Minnesota State Retirement <br/>
<a id="pl.153.10"></a><var>153.10</var>System established under chapter 352;<br/>
<a id="pl.153.11"></a><var>153.11</var>(2) the correctional state employees retirement plan of the Minnesota State <br/>
<a id="pl.153.12"></a><var>153.12</var>Retirement System established under chapter 352;<br/>
<a id="pl.153.13"></a><var>153.13</var>(3) the State Patrol retirement plan established under chapter 352B;<br/>
<a id="pl.153.14"></a><var>153.14</var>(4) the unclassified state employees retirement program of the Minnesota State <br/>
<a id="pl.153.15"></a><var>153.15</var>Retirement System established under chapter 352D;<br/>
<a id="pl.153.16"></a><var>153.16</var>(5) the general employee retirement plan of the Public Employees Retirement <br/>
<a id="pl.153.17"></a><var>153.17</var>Association established under chapter 353;<br/>
<a id="pl.153.18"></a><var>153.18</var>(6) the public employees police and fire retirement plan established under chapter 353;<br/>
<a id="pl.153.19"></a><var>153.19</var>(7) the local government correctional employees retirement plan of the Public <br/>
<a id="pl.153.20"></a><var>153.20</var>Employees Retirement Association established under chapter 353E;<br/>
<a id="pl.153.21"></a><var>153.21</var>(8) the Teachers Retirement Association established under chapter 354; and<br/>
<a id="pl.153.22"></a><var>153.22</var>(9) the St. Paul Teachers Retirement Fund Association established under chapter <br/>
<a id="pl.153.23"></a><var>153.23</var>354A; and<br/>
<a id="pl.153.24"></a><var>153.24</var>(9) (10) the uniform judicial retirement plan established under chapter 490.<br/>
<a id="pl.153.25"></a><var>153.25</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.7.9.0"></a><a id="pl.153.26"></a><var>153.26</var>    Sec. 9. <b>MSRS-GENERAL RETIREMENT ELIGIBILITY CLARIFICATION; </b><br/>
<a id="pl.153.27"></a><var>153.27</var><b>SERVICE CREDIT PURCHASE IN CERTAIN INSTANCES.</b><br/>
<a id="pl.153.28"></a><var>153.28</var>(a) An eligible person described in paragraph (b) is entitled to purchase prior <br/>
<a id="pl.153.29"></a><var>153.29</var>uncredited service credit under paragraph (c) and, if the service credit purchase is made, to <br/>
<a id="pl.153.30"></a><var>153.30</var>have the effective start date for active retirement plan membership of June 30, 1989, and <br/>
<a id="pl.153.31"></a><var>153.31</var>to retire under Minnesota Statutes, section 352.116, subdivision 1.<br/>
<a id="pl.153.32"></a><var>153.32</var>(b) An eligible person is a person who:<br/>
<a id="pl.153.33"></a><var>153.33</var>(1) was born on July 17, 1964;<br/>
<a id="pl.154.1"></a><var>154.1</var>(2) was initially employed by the state of Minnesota as a temporary status laborer <br/>
<a id="pl.154.2"></a><var>154.2</var>general on June 19, 1989;<br/>
<a id="pl.154.3"></a><var>154.3</var>(3) became a seasonal status laborer general on August 30, 1989;<br/>
<a id="pl.154.4"></a><var>154.4</var>(4) became an unlimited status laborer general on December 12, 1990;<br/>
<a id="pl.154.5"></a><var>154.5</var>(5) has received annual statements from the Minnesota State Retirement System <br/>
<a id="pl.154.6"></a><var>154.6</var>indicating eligibility for a retirement benefit under Minnesota Statutes, section 352.116, <br/>
<a id="pl.154.7"></a><var>154.7</var>subdivision 1, paragraph (b), as of September 1, 2012, including the June 30, 2012, annual <br/>
<a id="pl.154.8"></a><var>154.8</var>statement;<br/>
<a id="pl.154.9"></a><var>154.9</var>(6) attended a Minnesota State Retirement System preretirement class in March <br/>
<a id="pl.154.10"></a><var>154.10</var>2012 and was individually informed by a Minnesota State Retirement System employee of <br/>
<a id="pl.154.11"></a><var>154.11</var>the person's retirement eligibility under Minnesota Statutes, section 352.116, subdivision <br/>
<a id="pl.154.12"></a><var>154.12</var>1, paragraph (b); and<br/>
<a id="pl.154.13"></a><var>154.13</var>(7) received a letter from the Minnesota State Retirement System on August 16, <br/>
<a id="pl.154.14"></a><var>154.14</var>2012, revising the start date for general state employees retirement plan allowable <br/>
<a id="pl.154.15"></a><var>154.15</var>service credit from June 19, 1989, to September 27, 1989, and indicating consequent <br/>
<a id="pl.154.16"></a><var>154.16</var>inapplicability of Minnesota Statutes, section 352.116, subdivision 1.<br/>
<a id="pl.154.17"></a><var>154.17</var>(c) An eligible person may purchase allowable service credit in the general state <br/>
<a id="pl.154.18"></a><var>154.18</var>employees retirement plan of the Minnesota State Retirement System for the period June <br/>
<a id="pl.154.19"></a><var>154.19</var>30, 1989, by paying an amount equal to 7.63 percent of salary earned after June 18, 1989, <br/>
<a id="pl.154.20"></a><var>154.20</var>to June 30, 1989, and to 8.85 percent of salary earned after June 30, 1989, to September 27, <br/>
<a id="pl.154.21"></a><var>154.21</var>1989, plus 8.5 percent compound interest on the total equivalent employee and employer <br/>
<a id="pl.154.22"></a><var>154.22</var>contribution amounts from the date on which the contribution would have been deducted <br/>
<a id="pl.154.23"></a><var>154.23</var>or paid if the person had been a member of the general state employees retirement plan of <br/>
<a id="pl.154.24"></a><var>154.24</var>the Minnesota State Retirement System at the time to the date that this portion of the prior <br/>
<a id="pl.154.25"></a><var>154.25</var>service credit purchase payment is made. The payment must be made in a lump sum.<br/>
<a id="pl.154.26"></a><var>154.26</var>(d) An eligible person who purchased allowable service credit under paragraph <br/>
<a id="pl.154.27"></a><var>154.27</var>(c) has a June 30, 1989, start date for allowable service credited by the general state <br/>
<a id="pl.154.28"></a><var>154.28</var>employees retirement plan of the Minnesota State Retirement System and is eligible for a <br/>
<a id="pl.154.29"></a><var>154.29</var>retirement annuity under Minnesota Statutes, section 352.116, subdivision 1.<br/>
<a id="pl.154.30"></a><var>154.30</var>(e) Authority to purchase prior uncredited allowable service credit under this section <br/>
<a id="pl.154.31"></a><var>154.31</var>expires on August 1, 2013.<br/>
<a id="pl.154.32"></a><var>154.32</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2013.<br/>
<br/>
<a id="bill.7.10.0"></a><a id="pl.154.33"></a><var>154.33</var>    Sec. 10. <b>PERA-GENERAL; PURCHASE OF CERTAIN PRIOR NORTHFIELD </b><br/>
<a id="pl.154.34"></a><var>154.34</var><b>SERVICE CREDIT.</b><br/>
<a id="pl.155.1"></a><var>155.1</var>(a) Notwithstanding any provision of Minnesota Statutes, chapter 353, to the <br/>
<a id="pl.155.2"></a><var>155.2</var>contrary, an eligible person described in paragraph (b) is entitled to repay any prior refund <br/>
<a id="pl.155.3"></a><var>155.3</var>as provided in paragraph (c) and is entitled to purchase service credit as provided in <br/>
<a id="pl.155.4"></a><var>155.4</var>paragraph (d).<br/>
<a id="pl.155.5"></a><var>155.5</var>(b) An eligible person is a person who:<br/>
<a id="pl.155.6"></a><var>155.6</var>(1) was born on July 10, 1942;<br/>
<a id="pl.155.7"></a><var>155.7</var>(2) was employed by the city of Northfield on October 5, 2005;<br/>
<a id="pl.155.8"></a><var>155.8</var>(3) became a member of the general employees retirement plan of the Public <br/>
<a id="pl.155.9"></a><var>155.9</var>Employees Retirement Association on April 5, 2009;<br/>
<a id="pl.155.10"></a><var>155.10</var>(4) was employed by the transit division of the city of Northfield until June 29, <br/>
<a id="pl.155.11"></a><var>155.11</var>2012; and<br/>
<a id="pl.155.12"></a><var>155.12</var>(5) was eligible for PERA general employees retirement plan membership on <br/>
<a id="pl.155.13"></a><var>155.13</var>October 5, 2005, but was not reported to PERA for membership in a timely fashion.<br/>
<a id="pl.155.14"></a><var>155.14</var>(c) The eligible person may repay to the general employees retirement fund of <br/>
<a id="pl.155.15"></a><var>155.15</var>the Public Employees Retirement Association any refund of accumulated member <br/>
<a id="pl.155.16"></a><var>155.16</var>contributions and interest previously received, plus interest at an annual rate of 8.5 percent <br/>
<a id="pl.155.17"></a><var>155.17</var>compounded annually from the date on which the refund was paid until the date on which <br/>
<a id="pl.155.18"></a><var>155.18</var>the refund is repaid.<br/>
<a id="pl.155.19"></a><var>155.19</var>(d) If the eligible person repays all prior refunds under paragraph (c), the eligible <br/>
<a id="pl.155.20"></a><var>155.20</var>person may purchase 43 months of allowable service credit and salary credit from the <br/>
<a id="pl.155.21"></a><var>155.21</var>general employees retirement plan of the Public Employees Retirement Association by <br/>
<a id="pl.155.22"></a><var>155.22</var>making a payment equal to the unpaid member contributions during the period October 5, <br/>
<a id="pl.155.23"></a><var>155.23</var>2005, until April 5, 2009, plus 8.5 percent interest from the date that each contribution <br/>
<a id="pl.155.24"></a><var>155.24</var>would have been transmitted to the Public Employees Retirement Association until the <br/>
<a id="pl.155.25"></a><var>155.25</var>date that the payment under this paragraph is made.<br/>
<a id="pl.155.26"></a><var>155.26</var>(e) If the eligible person makes the payment required under paragraph (c) in a timely <br/>
<a id="pl.155.27"></a><var>155.27</var>fashion, within 30 days following notification of that fact by the executive director of the <br/>
<a id="pl.155.28"></a><var>155.28</var>Public Employees Retirement Association, the city of Northfield shall pay the balance <br/>
<a id="pl.155.29"></a><var>155.29</var>of the prior service credit purchase payment amount required under Minnesota Statutes, <br/>
<a id="pl.155.30"></a><var>155.30</var>section 356.551. If the payment by the city of Northfield is not paid in a timely fashion, <br/>
<a id="pl.155.31"></a><var>155.31</var>the executive director shall collect the unpaid amount as provided under Minnesota <br/>
<a id="pl.155.32"></a><var>155.32</var>Statutes, section 353.28, subdivision 6.<br/>
<a id="pl.155.33"></a><var>155.33</var>(f) Authority to repay a refund and to make a prior service credit purchase payment <br/>
<a id="pl.155.34"></a><var>155.34</var>under this section expires on December 31, 2014.<br/>
<a id="pl.155.35"></a><var>155.35</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.7.11.0"></a><a id="pl.156.1"></a><var>156.1</var>    Sec. 11. <b>PERA-GENERAL; SERVICE CREDIT PURCHASE FOR OMITTED </b><br/>
<a id="pl.156.2"></a><var>156.2</var><b>CONTRIBUTION PERIOD; WRIGHT COUNTY HIGHWAY DEPARTMENT </b><br/>
<a id="pl.156.3"></a><var>156.3</var><b>EMPLOYEE.</b><br/>
<a id="pl.156.4"></a><var>156.4</var>(a) Notwithstanding any provision of law to the contrary, an eligible person <br/>
<a id="pl.156.5"></a><var>156.5</var>described in paragraph (b) is entitled to purchase from the general employees retirement <br/>
<a id="pl.156.6"></a><var>156.6</var>plan of the Public Employees Retirement Association allowable service credit under <br/>
<a id="pl.156.7"></a><var>156.7</var>Minnesota Statutes, section 353.01, subdivision 16, for the period of omitted member <br/>
<a id="pl.156.8"></a><var>156.8</var>deductions described in paragraph (c).<br/>
<a id="pl.156.9"></a><var>156.9</var>(b) An eligible person is a person who:<br/>
<a id="pl.156.10"></a><var>156.10</var>(1) was born on March 19, 1959;<br/>
<a id="pl.156.11"></a><var>156.11</var>(2) is a current employee of the Wright County Highway Department, covered by <br/>
<a id="pl.156.12"></a><var>156.12</var>the general employees retirement plan of the Public Employees Retirement Association;<br/>
<a id="pl.156.13"></a><var>156.13</var>(3) shifted from temporary to full-time employment with the highway department <br/>
<a id="pl.156.14"></a><var>156.14</var>in April 2007; and<br/>
<a id="pl.156.15"></a><var>156.15</var>(4) was not reported by Wright County for retirement coverage by and membership <br/>
<a id="pl.156.16"></a><var>156.16</var>in the general employees retirement plan of the Public Employees Retirement Association <br/>
<a id="pl.156.17"></a><var>156.17</var>until March 2012.<br/>
<a id="pl.156.18"></a><var>156.18</var>(c) The period of uncredited service authorized for purchase is the period from <br/>
<a id="pl.156.19"></a><var>156.19</var>April 2007 through December 2008, during which no member contributions for the <br/>
<a id="pl.156.20"></a><var>156.20</var>general employees retirement plan of the Public Employees Retirement Association were <br/>
<a id="pl.156.21"></a><var>156.21</var>deducted from the eligible person's salary by Wright County, and which could not be <br/>
<a id="pl.156.22"></a><var>156.22</var>corrected through the Public Employees Retirement Association omitted contribution <br/>
<a id="pl.156.23"></a><var>156.23</var>provision due to a three-year time limit in the provision.<br/>
<a id="pl.156.24"></a><var>156.24</var>(d) Minnesota Statutes, section 356.551, applies to this purchase, except that the <br/>
<a id="pl.156.25"></a><var>156.25</var>purchase payment amount payable by the eligible person is the employee contributions <br/>
<a id="pl.156.26"></a><var>156.26</var>that should have been made, plus 8.5 percent interest compounded annually from the <br/>
<a id="pl.156.27"></a><var>156.27</var>date each deduction should have occurred, until the date paid to the Public Employees <br/>
<a id="pl.156.28"></a><var>156.28</var>Retirement Association. The purchase payment amount payable by Wright County is the <br/>
<a id="pl.156.29"></a><var>156.29</var>balance of the full actuarial value prior service credit purchase payment amount as of the <br/>
<a id="pl.156.30"></a><var>156.30</var>first day of the month next following the receipt of the eligible person's payment that is <br/>
<a id="pl.156.31"></a><var>156.31</var>remaining after deducting the purchase payment amount payable by the eligible person.<br/>
<a id="pl.156.32"></a><var>156.32</var>(e) The payment amount due from the county under paragraph (d) must be made on <br/>
<a id="pl.156.33"></a><var>156.33</var>or before the 15th of the month next following the receipt of the eligible person's payment <br/>
<a id="pl.156.34"></a><var>156.34</var>under paragraph (d). If the county purchase payment amount is not paid in a timely <br/>
<a id="pl.156.35"></a><var>156.35</var>fashion, the amount due accrues compound monthly interest at the rate of 0.71 percent per <br/>
<a id="pl.156.36"></a><var>156.36</var>month from the first day of the month next following the receipt of the eligible person's <br/>
<a id="pl.157.1"></a><var>157.1</var>payment until the county purchase payment amount is received by the Public Employees <br/>
<a id="pl.157.2"></a><var>157.2</var>Retirement Association. If the county purchase payment amount is not paid to the Public <br/>
<a id="pl.157.3"></a><var>157.3</var>Employees Retirement Association 90 days after the receipt of the eligible person's <br/>
<a id="pl.157.4"></a><var>157.4</var>payment, the executive director shall notify the commissioner of management and budget <br/>
<a id="pl.157.5"></a><var>157.5</var>and the commissioner of revenue of that unpaid obligation and the unpaid obligation must <br/>
<a id="pl.157.6"></a><var>157.6</var>be deducted from any state aid otherwise payable to the county, plus interest.<br/>
<a id="pl.157.7"></a><var>157.7</var>(f) The eligible person must provide the executive director of the Public Employees <br/>
<a id="pl.157.8"></a><var>157.8</var>Retirement Association with any relevant requested information pertaining to this service <br/>
<a id="pl.157.9"></a><var>157.9</var>credit purchase.<br/>
<a id="pl.157.10"></a><var>157.10</var>(g) Authority to make a service credit purchase under this section expires on June <br/>
<a id="pl.157.11"></a><var>157.11</var>30, 2014, or upon the termination from public employment under Minnesota Statutes, <br/>
<a id="pl.157.12"></a><var>157.12</var>section 353.01, subdivision 11a, whichever occurs earlier.<br/>
<a id="pl.157.13"></a><var>157.13</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.8.0.0"></a>

<a id="bill.8.1.0"></a><a id="pl.157.16"></a><var>157.16</var>    Section 1. <b>[6.496] VOLUNTEER FIREFIGHTER RELIEF ASSOCIATIONS; </b><br/>
<a id="pl.157.17"></a><var>157.17</var><b>STATE BOARD OF INVESTMENT OPTIONS.</b><br/>
<a id="pl.157.18"></a><var>157.18</var>(a) Annually, on or before March 1, the state auditor shall provide all volunteer <br/>
<a id="pl.157.19"></a><var>157.19</var>firefighter relief associations with recent and historic investment performance results of <br/>
<a id="pl.157.20"></a><var>157.20</var>the various accounts of the Minnesota supplemental investment fund and information <br/>
<a id="pl.157.21"></a><var>157.21</var>on the process and procedures for a volunteer firefighter relief association to utilize the <br/>
<a id="pl.157.22"></a><var>157.22</var>Minnesota supplemental investment fund as an investment option.<br/>
<a id="pl.157.23"></a><var>157.23</var>(b) Annually, on or before March 1, the state auditor shall provide all volunteer <br/>
<a id="pl.157.24"></a><var>157.24</var>firefighter relief associations with basic information on the voluntary statewide lump-sum <br/>
<a id="pl.157.25"></a><var>157.25</var>volunteer firefighter retirement plan, that a fire department has the option annually to join <br/>
<a id="pl.157.26"></a><var>157.26</var>the retirement plan, and that, if the fire department joins the retirement plan, future asset <br/>
<a id="pl.157.27"></a><var>157.27</var>investments would be the responsibility of the State Board of Investment.<br/>
<a id="pl.157.28"></a><var>157.28</var>(c) The information provision required by paragraphs (a) and (b) may be provided in <br/>
<a id="pl.157.29"></a><var>157.29</var>an electronic or other format if the state auditor determines that the format is reasonably <br/>
<a id="pl.157.30"></a><var>157.30</var>accessible by a preponderance of volunteer firefighter relief associations.<br/>
<a id="pl.157.31"></a><var>157.31</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2013.<br/>
<br/>
<a id="bill.8.2.0"></a><a id="pl.157.32"></a><var>157.32</var>    Sec. 2. Minnesota Statutes 2012, section 352.03, subdivision 4, is amended to read:<br/>
<a id="pl.157.33"></a><var>157.33</var>    Subd. 4. <b>Duties and powers of board of directors.</b> (a) The board shall:<br/>
<a id="pl.158.1"></a><var>158.1</var>    (1) elect a chair;<br/>
<a id="pl.158.2"></a><var>158.2</var>    (2) appoint an executive director;<br/>
<a id="pl.158.3"></a><var>158.3</var>    (3) establish rules to administer this chapter and chapters 3A, 352B, 352C, 352D, <br/>
<a id="pl.158.4"></a><var>158.4</var>and 490 and transact the business of the system, subject to the limitations of law;<br/>
<a id="pl.158.5"></a><var>158.5</var>    (4) consider and dispose of, or take any other action the board of directors deems <br/>
<a id="pl.158.6"></a><var>158.6</var>appropriate concerning, denials of applications for annuities or disability benefits under <br/>
<a id="pl.158.7"></a><var>158.7</var>this chapter, chapter 3A, 352B, 352C, 352D, or 490, and complaints of employees and <br/>
<a id="pl.158.8"></a><var>158.8</var>others pertaining to the retirement of employees and the operation of the system;<br/>
<a id="pl.158.9"></a><var>158.9</var>    (5) oversee the administration of the deferred compensation plan established in <br/>
<a id="pl.158.10"></a><var>158.10</var>section 
         <statute_ref>352.965</statute_ref>; and<br/>
<a id="pl.158.11"></a><var>158.11</var>    (6) oversee the administration of the health care savings plan established in section <br/>
<a id="pl.158.12"></a><var>158.12</var><statute_ref>352.98</statute_ref>.; and<br/>
<a id="pl.158.13"></a><var>158.13</var>    (7) approve early retirement and optional annuity factors, subject to review by the <br/>
<a id="pl.158.14"></a><var>158.14</var>actuary retained by the Legislative Commission on Pensions and Retirement; establish <br/>
<a id="pl.158.15"></a><var>158.15</var>the schedule for implementation of the approved factors; and notify the Legislative <br/>
<a id="pl.158.16"></a><var>158.16</var>Commission on Pensions and Retirement of the implementation schedule.<br/>
<a id="pl.158.17"></a><var>158.17</var>    (b) The board shall advise the director on any matters relating to the system and <br/>
<a id="pl.158.18"></a><var>158.18</var>carrying out functions and purposes of this chapter. The board's advice shall control.<br/>
<br/>
<a id="bill.8.3.0"></a><a id="pl.158.19"></a><var>158.19</var>    Sec. 3. Minnesota Statutes 2012, section 353.03, subdivision 3, is amended to read:<br/>
<a id="pl.158.20"></a><var>158.20</var>    Subd. 3. <b>Duties and powers.</b> (a) The board shall:<br/>
<a id="pl.158.21"></a><var>158.21</var>    (1) elect a president and vice-president;<br/>
<a id="pl.158.22"></a><var>158.22</var>    (2) approve the staffing complement, as recommended by the executive director, <br/>
<a id="pl.158.23"></a><var>158.23</var>necessary to administer the fund;<br/>
<a id="pl.158.24"></a><var>158.24</var>     (3) adopt bylaws for its own government and for the management of the fund <br/>
<a id="pl.158.25"></a><var>158.25</var>consistent with the laws of the state and may modify them at pleasure;<br/>
<a id="pl.158.26"></a><var>158.26</var>    (4) adopt, alter, and enforce reasonable rules consistent with the laws of the state and <br/>
<a id="pl.158.27"></a><var>158.27</var>the terms of the applicable benefit plans for the administration and management of the <br/>
<a id="pl.158.28"></a><var>158.28</var>fund, for the payment and collection of payments from members and for the payment of <br/>
<a id="pl.158.29"></a><var>158.29</var>withdrawals and benefits, and that are necessary in order to comply with the applicable <br/>
<a id="pl.158.30"></a><var>158.30</var>federal Internal Revenue Service and Department of Labor requirements;<br/>
<a id="pl.158.31"></a><var>158.31</var>    (5) pass upon and allow or disallow all applications for membership in the fund and <br/>
<a id="pl.158.32"></a><var>158.32</var>allow or disallow claims for withdrawals, pensions, or benefits payable from the fund;<br/>
<a id="pl.158.33"></a><var>158.33</var>    (6) adopt an appropriate mortality table based on experience of the fund as <br/>
<a id="pl.158.34"></a><var>158.34</var>recommended by the association actuary and approved under section 
         <statute_ref>356.215, subdivision <br/>
<a id="pl.158.35"></a><var>158.35</var>18
         </statute_ref>, with interest set at the rate specified in section 
         <statute_ref>356.215, subdivision 8</statute_ref>;<br/>
<a id="pl.159.1"></a><var>159.1</var>    (7) provide for the payment out of the fund of the cost of administering this <br/>
<a id="pl.159.2"></a><var>159.2</var>chapter, of all necessary expenses for the administration of the fund and of all claims for <br/>
<a id="pl.159.3"></a><var>159.3</var>withdrawals, pensions, or benefits allowed; and<br/>
<a id="pl.159.4"></a><var>159.4</var>    (8) approve or disapprove all recommendations and actions of the executive director <br/>
<a id="pl.159.5"></a><var>159.5</var>made subject to its approval or disapproval by subdivision 3a.; and<br/>
<a id="pl.159.6"></a><var>159.6</var>    (9) approve early retirement and optional annuity factors, subject to review by the <br/>
<a id="pl.159.7"></a><var>159.7</var>actuary retained by the Legislative Commission on Pensions and Retirement; establish <br/>
<a id="pl.159.8"></a><var>159.8</var>the schedule for implementation of the approved factors; and notify the Legislative <br/>
<a id="pl.159.9"></a><var>159.9</var>Commission on Pensions and Retirement of the implementation schedule.<br/>
<a id="pl.159.10"></a><var>159.10</var>    (b) In passing upon all applications and claims, the board may summon, swear, hear, <br/>
<a id="pl.159.11"></a><var>159.11</var>and examine witnesses and, in the case of claims for disability benefits, may require the <br/>
<a id="pl.159.12"></a><var>159.12</var>claimant to submit to a medical examination by a physician of the board's choice, at the <br/>
<a id="pl.159.13"></a><var>159.13</var>expense of the fund, as a condition precedent to the passing on the claim, and, in the <br/>
<a id="pl.159.14"></a><var>159.14</var>case of all applications and claims, may conduct investigations necessary to determine <br/>
<a id="pl.159.15"></a><var>159.15</var>their validity and merit.<br/>
<a id="pl.159.16"></a><var>159.16</var>    (c) The board may continue to authorize the sale of life insurance to members under <br/>
<a id="pl.159.17"></a><var>159.17</var>the insurance program in effect on January 1, 1985, but must not change that program <br/>
<a id="pl.159.18"></a><var>159.18</var>without the approval of the commissioner of management and budget. The association <br/>
<a id="pl.159.19"></a><var>159.19</var>shall not receive any financial benefit from the life insurance program beyond the amount <br/>
<a id="pl.159.20"></a><var>159.20</var>necessary to reimburse the association for costs incurred in administering the program. <br/>
<a id="pl.159.21"></a><var>159.21</var>The association shall not engage directly or indirectly in any other activity involving the <br/>
<a id="pl.159.22"></a><var>159.22</var>sale or promotion of goods or services, or both, whether to members or nonmembers.<br/>
<a id="pl.159.23"></a><var>159.23</var>    (d) The board shall establish procedures governing reimbursement of expenses <br/>
<a id="pl.159.24"></a><var>159.24</var>to board members. These procedures must define the types of activities and expenses <br/>
<a id="pl.159.25"></a><var>159.25</var>that qualify for reimbursement, must provide that all out-of-state travel be authorized <br/>
<a id="pl.159.26"></a><var>159.26</var>by the board, and must provide for the independent verification of claims for expense <br/>
<a id="pl.159.27"></a><var>159.27</var>reimbursement. The procedures must comply with the applicable rules and policies of the <br/>
<a id="pl.159.28"></a><var>159.28</var>Department of Management and Budget and the Department of Administration.<br/>
<a id="pl.159.29"></a><var>159.29</var>    (e) The board may purchase fiduciary liability insurance and official bonds for the <br/>
<a id="pl.159.30"></a><var>159.30</var>officers and members of the board of trustees and employees of the association and may <br/>
<a id="pl.159.31"></a><var>159.31</var>purchase property insurance or may establish a self-insurance risk reserve including, but <br/>
<a id="pl.159.32"></a><var>159.32</var>not limited to, data processing insurance and "extra-expense" coverage.<br/>
<br/>
<a id="bill.8.4.0"></a><a id="pl.159.33"></a><var>159.33</var>    Sec. 4. Minnesota Statutes 2012, section 354.07, subdivision 1, is amended to read:<br/>
<a id="pl.159.34"></a><var>159.34</var>    Subdivision 1. <b>General powers of board.</b> The board has the power to frame bylaws <br/>
<a id="pl.159.35"></a><var>159.35</var>for its own government and for the management of the association not inconsistent with <br/>
<a id="pl.160.1"></a><var>160.1</var>the laws of the state and to modify them at its pleasure; to adopt, alter, and enforce <br/>
<a id="pl.160.2"></a><var>160.2</var>reasonable rules not inconsistent with the laws of the state for the administration and <br/>
<a id="pl.160.3"></a><var>160.3</var>management of the association, for the payment and collection of payments from <br/>
<a id="pl.160.4"></a><var>160.4</var>members, and for the payment of withdrawals and benefits; to pass upon and allow or <br/>
<a id="pl.160.5"></a><var>160.5</var>disallow applications for membership in the association and for credit for teaching service; <br/>
<a id="pl.160.6"></a><var>160.6</var>to pass upon and allow or disallow claims for withdrawals, pensions, or benefits payable <br/>
<a id="pl.160.7"></a><var>160.7</var>by the fund; to adopt an appropriate mortality table based on experience of the association <br/>
<a id="pl.160.8"></a><var>160.8</var>as recommended by the actuary retained under section 
         <statute_ref>356.214 </statute_ref>and using the applicable <br/>
<a id="pl.160.9"></a><var>160.9</var>postretirement interest assumption specified in section 
         <statute_ref>356.215, subdivision 8</statute_ref>; to approve <br/>
<a id="pl.160.10"></a><var>160.10</var>early retirement and optional annuity factors, subject to review by the actuary retained by <br/>
<a id="pl.160.11"></a><var>160.11</var>the Legislative Commission on Pensions and Retirement; to establish the schedule for <br/>
<a id="pl.160.12"></a><var>160.12</var>implementation of the approved factors; to notify the Legislative Commission on Pensions <br/>
<a id="pl.160.13"></a><var>160.13</var>and Retirement of the implementation schedule; and to provide for the payment out of <br/>
<a id="pl.160.14"></a><var>160.14</var>the fund of necessary expenses for the administration by the association and of claims for <br/>
<a id="pl.160.15"></a><var>160.15</var>withdrawals, pensions, or benefits allowed.<br/>
<br/>
<a id="bill.8.5.0"></a><a id="pl.160.16"></a><var>160.16</var>    Sec. 5. Minnesota Statutes 2012, section 354A.021, subdivision 2, is amended to read:<br/>
<a id="pl.160.17"></a><var>160.17</var>    Subd. 2. <b>Organization</b><b>; board duties</b><b>.</b> (a) Each teachers retirement fund association <br/>
<a id="pl.160.18"></a><var>160.18</var>shall be organized and governed pursuant to this chapter and chapter 317A, except that <br/>
<a id="pl.160.19"></a><var>160.19</var>each association shall be deemed to be a nonprofit corporation without coming within <br/>
<a id="pl.160.20"></a><var>160.20</var>the definition in section 
         <statute_ref>317A.011, subdivision 6</statute_ref>. Any corporate action of any teachers <br/>
<a id="pl.160.21"></a><var>160.21</var>retirement fund association taken prior to April 9, 1976, shall be deemed to be valid if it <br/>
<a id="pl.160.22"></a><var>160.22</var>conformed with Minnesota Statutes 1976, chapter 317 or 354A, or Revised Laws 1905, <br/>
<a id="pl.160.23"></a><var>160.23</var>chapter 58, as amended through April 9, 1976.<br/>
<a id="pl.160.24"></a><var>160.24</var>(b) In addition to the other powers and duties of a board of trustees of a first class <br/>
<a id="pl.160.25"></a><var>160.25</var>city teacher retirement fund association, the board shall approve early retirement and <br/>
<a id="pl.160.26"></a><var>160.26</var>optional annuity factors, subject to review by the actuary retained by the Legislative <br/>
<a id="pl.160.27"></a><var>160.27</var>Commission on Pensions and Retirement; shall establish the schedule for implementation <br/>
<a id="pl.160.28"></a><var>160.28</var>of the approved factors; and shall notify the Legislative Commission on Pensions and <br/>
<a id="pl.160.29"></a><var>160.29</var>Retirement of the implementation schedule.<br/>
<br/>
<a id="bill.9.0.0"></a>

<a id="bill.9.1.0"></a><a id="pl.160.32"></a><var>160.32</var>    Section 1. Minnesota Statutes 2012, section 352B.011, subdivision 4, is amended to <br/>
<a id="pl.160.33"></a><var>160.33</var>read:<br/>
<a id="pl.161.1"></a><var>161.1</var>    Subd. 4. <b>Average monthly salary.</b> (a) Subject to the limitations of section 
         <statute_ref>356.611</statute_ref>, <br/>
<a id="pl.161.2"></a><var>161.2</var>"average monthly salary" means the average of the highest monthly salaries for five years <br/>
<a id="pl.161.3"></a><var>161.3</var>of service as a member upon which contributions were deducted from pay under section <br/>
<statute_ref><a id="pl.161.4"></a><var>161.4</var>352B.02
         </statute_ref>, or upon which appropriate contributions or payments were made to the fund to <br/>
<a id="pl.161.5"></a><var>161.5</var>receive allowable service and salary credit as specified under the applicable law. Average <br/>
<a id="pl.161.6"></a><var>161.6</var>monthly salary must be based upon all allowable service if this service is less than five years.<br/>
<a id="pl.161.7"></a><var>161.7</var>(b) The salary used for the calculation of "average monthly salary" means the salary <br/>
<a id="pl.161.8"></a><var>161.8</var>of the member as defined in section 
         <statute_ref>352.01, subdivision 13</statute_ref>. "Average monthly salary" <br/>
<a id="pl.161.9"></a><var>161.9</var>includes the salary of the member during the period of covered employment rendered after <br/>
<a id="pl.161.10"></a><var>161.10</var>reaching the allowable service credit limit of section 352B.08, subdivision 2, paragraph <br/>
<a id="pl.161.11"></a><var>161.11</var>(b). The salary used for the calculation of "average monthly salary" does not include any <br/>
<a id="pl.161.12"></a><var>161.12</var>lump-sum annual leave payments and overtime payments made at the time of separation <br/>
<a id="pl.161.13"></a><var>161.13</var>from state service, any amounts of severance pay, or any reduced salary paid during the <br/>
<a id="pl.161.14"></a><var>161.14</var>period the person is entitled to workers' compensation benefit payments for temporary <br/>
<a id="pl.161.15"></a><var>161.15</var>disability.<br/>
<a id="pl.161.16"></a><var>161.16</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.9.2.0"></a><a id="pl.161.17"></a><var>161.17</var>    Sec. 2. Minnesota Statutes 2012, section 352B.02, subdivision 1a, is amended to read:<br/>
<a id="pl.161.18"></a><var>161.18</var>    Subd. 1a. <b>Member contributions.</b> (a) The member contribution is the following <br/>
<a id="pl.161.19"></a><var>161.19</var>percentage of the member's salary:<br/>
<table>
<col width="50px"/>
<col width="2.5"/>
<col width="32.5"/>
<col width="17.5"/>
<tr>
<td><a id="pl.161.20"></a><var>161.20</var><br/>
<a id="pl.161.21"></a><var>161.21</var><br/>
</td>
<td></td>
<td>(1) before the first day of the first pay period beginning <br/>
                  		after July 1, 2011 2014<br/>
</td>
<td>10.40 12.4 percent<br/>
</td>
</tr>
<tr>
<td><a id="pl.161.22"></a><var>161.22</var><br/>
<a id="pl.161.23"></a><var>161.23</var><br/>
</td>
<td></td>
<td>(2) on or after the first day of the first pay period <br/>
                  		beginning after July 1, 2011 2014, to June 30, 2016<br/>
</td>
<td>12.40 13.4 percent<br/>
</td>
</tr>
<tr>
<td><a id="pl.161.24"></a><var>161.24</var><br/>
</td>
<td></td>
<td>(3) after June 30, 2016<br/>
</td>
<td>14.4 percent<br/>
</td>
</tr>
</table><a id="pl.161.25"></a><var>161.25</var>(b) These contributions must be made by deduction from salary as provided in <br/>
<a id="pl.161.26"></a><var>161.26</var>section 
         <statute_ref>352.04, subdivision 4</statute_ref>.<br/>
<a id="pl.161.27"></a><var>161.27</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2013.<br/>
<br/>
<a id="bill.9.3.0"></a><a id="pl.161.28"></a><var>161.28</var>    Sec. 3. Minnesota Statutes 2012, section 352B.02, subdivision 1c, is amended to read:<br/>
<a id="pl.161.29"></a><var>161.29</var>    Subd. 1c. <b>Employer contributions.</b> (a) In addition to member contributions, <br/>
<a id="pl.161.30"></a><var>161.30</var>department heads shall pay a sum equal to the specified percentage of the salary upon which <br/>
<a id="pl.161.31"></a><var>161.31</var>deductions were made, which constitutes the employer contribution to the fund as follows:<br/>
<table>
<col width="50px"/>
<col width="2.5"/>
<col width="32.5"/>
<col width="17.5"/>
<tr>
<td><a id="pl.162.1"></a><var>162.1</var><br/>
<a id="pl.162.2"></a><var>162.2</var><br/>
</td>
<td></td>
<td>(1) before the first day of the first pay period beginning <br/>
                  		after July 1, 2011 2014<br/>
</td>
<td>15.60 18.6 percent<br/>
</td>
</tr>
<tr>
<td><a id="pl.162.3"></a><var>162.3</var><br/>
<a id="pl.162.4"></a><var>162.4</var><br/>
</td>
<td></td>
<td>(2) on or after the first day of the first pay period <br/>
                  		beginning after July 1, 2011 2014, to June 30, 2016<br/>
</td>
<td>18.60 20.1 percent<br/>
</td>
</tr>
<tr>
<td><a id="pl.162.5"></a><var>162.5</var><br/>
</td>
<td></td>
<td>(3) after June 30, 2016<br/>
</td>
<td>21.6 percent<br/>
</td>
</tr>
</table><a id="pl.162.6"></a><var>162.6</var>(b) Department contributions must be paid out of money appropriated to departments <br/>
<a id="pl.162.7"></a><var>162.7</var>for this purpose.<br/>
<a id="pl.162.8"></a><var>162.8</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2013.<br/>
<br/>
<a id="bill.9.4.0"></a><a id="pl.162.9"></a><var>162.9</var>    Sec. 4. Minnesota Statutes 2012, section 352B.08, subdivision 1, is amended to read:<br/>
<a id="pl.162.10"></a><var>162.10</var>    Subdivision 1. <b>Eligibility; when to apply; accrual.</b> (a) Every member who is <br/>
<a id="pl.162.11"></a><var>162.11</var>credited with three or more years of allowable service if first employed before July 1, 2010<br/>
<a id="pl.162.12"></a><var>162.12</var> 2013, or with at least five ten years of allowable service if first employed after June 30, <br/>
<a id="pl.162.13"></a><var>162.13</var>2010 2013, is entitled to separate from state service and upon becoming 50 years old, is <br/>
<a id="pl.162.14"></a><var>162.14</var>entitled to receive a life annuity, upon separation from state service.<br/>
<a id="pl.162.15"></a><var>162.15</var>(b) Members must apply for an annuity in a form and manner prescribed by the <br/>
<a id="pl.162.16"></a><var>162.16</var>executive director.<br/>
<a id="pl.162.17"></a><var>162.17</var>(c) No application may be made more than 90 days before the date the member is <br/>
<a id="pl.162.18"></a><var>162.18</var>eligible to retire by reason of both age and service requirements.<br/>
<a id="pl.162.19"></a><var>162.19</var>(d) An annuity begins to accrue no earlier than 180 days before the date the <br/>
<a id="pl.162.20"></a><var>162.20</var>application is filed with the executive director.<br/>
<a id="pl.162.21"></a><var>162.21</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2013.<br/>
<br/>
<a id="bill.9.5.0"></a><a id="pl.162.22"></a><var>162.22</var>    Sec. 5. Minnesota Statutes 2012, section 352B.08, subdivision 2, is amended to read:<br/>
<a id="pl.162.23"></a><var>162.23</var>    Subd. 2. <b>Normal retirement annuity.</b> (a) The annuity must be paid in monthly <br/>
<a id="pl.162.24"></a><var>162.24</var>installments. The annuity shall be equal to the amount determined by multiplying <br/>
<a id="pl.162.25"></a><var>162.25</var>the average monthly salary of the member by the percent specified in section 
         <statute_ref>356.315, <br/>
<a id="pl.162.26"></a><var>162.26</var>subdivision 6
         </statute_ref>, for each year of allowable service and pro rata prorated for additional <br/>
<a id="pl.162.27"></a><var>162.27</var>completed months of allowable service, unless restricted under paragraph (b).<br/>
<a id="pl.162.28"></a><var>162.28</var>(b) Allowable service in excess of 33 years must not be used in computing the <br/>
<a id="pl.162.29"></a><var>162.29</var>annuity. This restriction does not apply to any member who has at least 28 years of <br/>
<a id="pl.162.30"></a><var>162.30</var>allowable service before July 1, 2013.<br/>
<a id="pl.162.31"></a><var>162.31</var>(c) When the annuity commences, any member contributions attributable to <br/>
<a id="pl.162.32"></a><var>162.32</var>allowable service not used to compute the annuity due to the restrictions in paragraph (b) <br/>
<a id="pl.162.33"></a><var>162.33</var>must be refunded using procedures specified in section 352B.11, subdivision 1.<br/>
<a id="pl.163.1"></a><var>163.1</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2013.<br/>
<br/>
<a id="bill.9.6.0"></a><a id="pl.163.2"></a><var>163.2</var>    Sec. 6. Minnesota Statutes 2012, section 352B.08, subdivision 2a, is amended to read:<br/>
<a id="pl.163.3"></a><var>163.3</var>    Subd. 2a. <b>Early retirement.</b> Any member who has become at least 50 years old <br/>
<a id="pl.163.4"></a><var>163.4</var>and who has at least three years of allowable service if first employed before July 1, <br/>
<a id="pl.163.5"></a><var>163.5</var>2010 2013, or who has at least five ten years of allowable service if first employed after <br/>
<a id="pl.163.6"></a><var>163.6</var>June 30, 2010 2013, is entitled upon application to a reduced retirement annuity equal <br/>
<a id="pl.163.7"></a><var>163.7</var>to the annuity calculated under subdivision 2, reduced by one-tenth of one percent for <br/>
<a id="pl.163.8"></a><var>163.8</var>each month that the member is under age 55 at the time of retirement, if first employed<br/>
<a id="pl.163.9"></a><var>163.9</var> the effective date of retirement is before July 1, 2010, or reduced by two-tenths of one <br/>
<a id="pl.163.10"></a><var>163.10</var>percent 2015. If the effective date of retirement is after June 30, 2015, the reduction is <br/>
<a id="pl.163.11"></a><var>163.11</var>0.34 percent for each month that the member is under age 55 at the time of retirement if <br/>
<a id="pl.163.12"></a><var>163.12</var>first employed after June 30, 2010.<br/>
<a id="pl.163.13"></a><var>163.13</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2013.<br/>
<br/>
<a id="bill.9.7.0"></a><a id="pl.163.14"></a><var>163.14</var>    Sec. 7. Minnesota Statutes 2012, section 352B.10, subdivision 5, is amended to read:<br/>
<a id="pl.163.15"></a><var>163.15</var>    Subd. 5. <b>Optional annuity.</b> A disabilitant may elect, in lieu of spousal survivorship <br/>
<a id="pl.163.16"></a><var>163.16</var>coverage under section 
         <statute_ref>352B.11</statute_ref>, subdivisions subdivision 2b and 2c, the normal disability <br/>
<a id="pl.163.17"></a><var>163.17</var>benefit or an optional annuity as provided in section 
         <statute_ref>352B.08, subdivision 3</statute_ref>. The choice <br/>
<a id="pl.163.18"></a><var>163.18</var>of an optional annuity must be made in writing, on a form prescribed by the executive <br/>
<a id="pl.163.19"></a><var>163.19</var>director, and must be made before the commencement of the payment of the disability <br/>
<a id="pl.163.20"></a><var>163.20</var>benefit, or within 90 days before reaching age 55 or before reaching the five-year <br/>
<a id="pl.163.21"></a><var>163.21</var>anniversary of the effective date of the disability benefit, whichever is later. The optional <br/>
<a id="pl.163.22"></a><var>163.22</var>annuity is effective on the date on which the disability benefit begins to accrue, or the <br/>
<a id="pl.163.23"></a><var>163.23</var>month following the attainment of age 55 or following the five-year anniversary of the <br/>
<a id="pl.163.24"></a><var>163.24</var>effective date of the disability benefit, whichever is later.<br/>
<br/>
<a id="bill.9.8.0"></a><a id="pl.163.25"></a><var>163.25</var>    Sec. 8. Minnesota Statutes 2012, section 352B.11, subdivision 1, is amended to read:<br/>
<a id="pl.163.26"></a><var>163.26</var>    Subdivision 1. <b>Refund of payments.</b> (a) A member who has not received other <br/>
<a id="pl.163.27"></a><var>163.27</var>benefits under this chapter is entitled to a refund of payments made by salary deduction, <br/>
<a id="pl.163.28"></a><var>163.28</var>plus interest, if the member is separated, either voluntarily or involuntarily, from the state <br/>
<a id="pl.163.29"></a><var>163.29</var>service that entitled the member to membership.<br/>
<a id="pl.163.30"></a><var>163.30</var>(b) A refund under section 352B.08, subdivision 2, paragraph (c), does not result in <br/>
<a id="pl.163.31"></a><var>163.31</var>a forfeiture of salary credit for the allowable service credit covered by the refund.<br/>
<a id="pl.163.32"></a><var>163.32</var>(b) (c) In the event of the member's death, if there are no survivor benefits payable <br/>
<a id="pl.163.33"></a><var>163.33</var>under this chapter, a refund plus interest is payable to the last designated beneficiary on <br/>
<a id="pl.164.1"></a><var>164.1</var>a form filed with the director before death, or if no designation is filed, is payable to <br/>
<a id="pl.164.2"></a><var>164.2</var>the member's estate. Interest under this subdivision must be calculated as provided in <br/>
<a id="pl.164.3"></a><var>164.3</var>section 
         <statute_ref>352.22, subdivision 2</statute_ref>. To receive a refund, the application must be made on a <br/>
<a id="pl.164.4"></a><var>164.4</var>form prescribed by the executive director.<br/>
<a id="pl.164.5"></a><var>164.5</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.9.9.0"></a><a id="pl.164.6"></a><var>164.6</var>    Sec. 9. Minnesota Statutes 2012, section 352B.11, subdivision 2b, is amended to read:<br/>
<a id="pl.164.7"></a><var>164.7</var>    Subd. 2b. <b>Surviving spouse benefit </b><b>eligibility</b><b>.</b> (a) If an active member with <br/>
<a id="pl.164.8"></a><var>164.8</var>three or more years of allowable service if first employed before July 1, 2010 2013, or <br/>
<a id="pl.164.9"></a><var>164.9</var>with at least five years of allowable service if first employed after June 30, 2010 2013, <br/>
<a id="pl.164.10"></a><var>164.10</var>dies before attaining age 55, the surviving spouse is entitled to the a benefit specified in <br/>
<a id="pl.164.11"></a><var>164.11</var>subdivision 2c, paragraph (b) for life equal to 50 percent of the average monthly salary <br/>
<a id="pl.164.12"></a><var>164.12</var>of the deceased member. On the first of the month next following the date on which the <br/>
<a id="pl.164.13"></a><var>164.13</var>deceased member would have attained exact age 55, in lieu of continued receipt of the <br/>
<a id="pl.164.14"></a><var>164.14</var>prior benefit, the surviving spouse is eligible to commence receipt of the second half of <br/>
<a id="pl.164.15"></a><var>164.15</var>a 100 percent joint and survivor annuity if this provides a larger benefit. The joint and <br/>
<a id="pl.164.16"></a><var>164.16</var>survivor annuity must be computed assuming the exact age 55 for the deceased member <br/>
<a id="pl.164.17"></a><var>164.17</var>and the age of the surviving spouse on the date of death.<br/>
<a id="pl.164.18"></a><var>164.18</var>(b) If an active member with less than three years of allowable service if first <br/>
<a id="pl.164.19"></a><var>164.19</var>employed before July 1, 2010 2013, or with fewer than five years of allowable service if <br/>
<a id="pl.164.20"></a><var>164.20</var>first employed after June 30, 2010 2013, dies at any age, the surviving spouse is entitled to <br/>
<a id="pl.164.21"></a><var>164.21</var>receive the a benefit specified in subdivision 2c, paragraph (c) for life equal to 50 percent <br/>
<a id="pl.164.22"></a><var>164.22</var>of the average monthly salary of the deceased member.<br/>
<a id="pl.164.23"></a><var>164.23</var>(c) If an active member with three or more years of allowable service if first <br/>
<a id="pl.164.24"></a><var>164.24</var>employed before July 1, 2010 2013, or with at least five years of allowable service if first <br/>
<a id="pl.164.25"></a><var>164.25</var>employed after June 30, 2010 2013, dies on or after attaining exact age 55, the surviving <br/>
<a id="pl.164.26"></a><var>164.26</var>spouse is entitled to receive the benefits specified in subdivision 2c, paragraph (d) a benefit <br/>
<a id="pl.164.27"></a><var>164.27</var>for life equal to 50 percent of the average monthly salary of the deceased member, or the <br/>
<a id="pl.164.28"></a><var>164.28</var>second half of a 100 percent joint and survivor annuity, whichever is larger. The joint and <br/>
<a id="pl.164.29"></a><var>164.29</var>survivor annuity must be computed using the age of the deceased member on the date of <br/>
<a id="pl.164.30"></a><var>164.30</var>death and the age of the surviving spouse on that same date.<br/>
<a id="pl.164.31"></a><var>164.31</var>(d) If a disabilitant dies while receiving a disability benefit under section 
         <statute_ref>352B.10</statute_ref> <br/>
<a id="pl.164.32"></a><var>164.32</var>or before the benefit under that section commenced, and an optional annuity was not <br/>
<a id="pl.164.33"></a><var>164.33</var>elected under section 
         <statute_ref>352B.10, subdivision 5</statute_ref>, the surviving spouse is entitled to receive <br/>
<a id="pl.164.34"></a><var>164.34</var>the a benefit specified in subdivision 2c, paragraph (b) for life equal to 50 percent of the <br/>
<a id="pl.164.35"></a><var>164.35</var>average monthly salary of the deceased member. On the first of the month next following <br/>
<a id="pl.165.1"></a><var>165.1</var>the date on which the deceased member would have attained exact age 55, in lieu of <br/>
<a id="pl.165.2"></a><var>165.2</var>continued receipt of the prior benefit, the surviving spouse is eligible to commence receipt <br/>
<a id="pl.165.3"></a><var>165.3</var>of the second half of a 100 percent joint and survivor annuity if this provides a larger <br/>
<a id="pl.165.4"></a><var>165.4</var>benefit. The joint and survivor annuity must be computed assuming the exact age 55 for <br/>
<a id="pl.165.5"></a><var>165.5</var>the deceased member and the age of the surviving spouse on the date of death.<br/>
<a id="pl.165.6"></a><var>165.6</var>(e) If a former member with three or more years of allowable service if first employed <br/>
<a id="pl.165.7"></a><var>165.7</var>before July 1, 2010 2013, or with at least five years of allowable service if first employed <br/>
<a id="pl.165.8"></a><var>165.8</var>after June 30, 2010 2013, who terminated from service and has not received a refund or <br/>
<a id="pl.165.9"></a><var>165.9</var>commenced receipt of any other benefit provided by this chapter, dies, the surviving <br/>
<a id="pl.165.10"></a><var>165.10</var>spouse is entitled to receive the as a benefit specified in subdivision 2c, paragraph (e) the <br/>
<a id="pl.165.11"></a><var>165.11</var>second half of a 100 percent joint and survivor annuity, commencing on the first of the <br/>
<a id="pl.165.12"></a><var>165.12</var>month next following the deceased member's date of death, or the first of the month next <br/>
<a id="pl.165.13"></a><var>165.13</var>following the date on which the deceased member would have attained age 55, whichever <br/>
<a id="pl.165.14"></a><var>165.14</var>is later. The joint and survivor annuity must be computed using the age of the deceased <br/>
<a id="pl.165.15"></a><var>165.15</var>member on the date of death and the age of the surviving spouse on that same date.<br/>
<a id="pl.165.16"></a><var>165.16</var>(f) If a former member with less than three years of allowable service if first <br/>
<a id="pl.165.17"></a><var>165.17</var>employed before July 1, 2010 2013, or with fewer than five years of allowable service if <br/>
<a id="pl.165.18"></a><var>165.18</var>first employed after June 30, 2010 2013, who terminated from service and has not received <br/>
<a id="pl.165.19"></a><var>165.19</var>a refund or commenced receipt of any other benefit, if applicable, provided by this chapter, <br/>
<a id="pl.165.20"></a><var>165.20</var>dies, the surviving spouse is entitled to receive the refund specified in subdivision 2c, <br/>
<a id="pl.165.21"></a><var>165.21</var>paragraph (f) or, if none, the children or, if none, the deceased member's estate is entitled to <br/>
<a id="pl.165.22"></a><var>165.22</var>a refund of the employee contributions plus interest computed as specified in subdivision 1.<br/>
<a id="pl.165.23"></a><var>165.23</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2013.<br/>
<br/>
<a id="bill.9.10.0"></a><a id="pl.165.24"></a><var>165.24</var>    Sec. 10. Minnesota Statutes 2012, section 356.415, subdivision 1e, is amended to read:<br/>
<a id="pl.165.25"></a><var>165.25</var>    Subd. 1e. <b>Annual postretirement adjustments; State Patrol retirement plan.</b><br/>
<a id="pl.165.26"></a><var>165.26</var>(a) Retirement annuity, disability benefit, or survivor benefit recipients of the State Patrol <br/>
<a id="pl.165.27"></a><var>165.27</var>retirement plan are entitled to a postretirement adjustment annually on January 1, as <br/>
<a id="pl.165.28"></a><var>165.28</var>follows:<br/>
<a id="pl.165.29"></a><var>165.29</var>(1) a postretirement increase of 1.5 one percent must be applied each year, effective <br/>
<a id="pl.165.30"></a><var>165.30</var>on January 1, to the monthly annuity or benefit of each annuitant or benefit recipient <br/>
<a id="pl.165.31"></a><var>165.31</var>who has been receiving an annuity or a benefit for at least 18 full months before the <br/>
<a id="pl.165.32"></a><var>165.32</var>January 1 increase; and<br/>
<a id="pl.165.33"></a><var>165.33</var>(2) for each annuitant or benefit recipient who has been receiving an annuity or a <br/>
<a id="pl.165.34"></a><var>165.34</var>benefit for at least six full months, an annual postretirement increase of 1/12 of 1.5 one <br/>
<a id="pl.165.35"></a><var>165.35</var>percent for each month that the person has been receiving an annuity or benefit must be <br/>
<a id="pl.166.1"></a><var>166.1</var>applied, effective January 1, following the calendar year in which the person has been <br/>
<a id="pl.166.2"></a><var>166.2</var>retired for at least six months, but has been retired for less than 18 months.<br/>
<a id="pl.166.3"></a><var>166.3</var>(b) The increases provided by this subdivision commence on January 1, 2011<br/>
<a id="pl.166.4"></a><var>166.4</var> 2014. Increases under this subdivision paragraph (a) for the State Patrol retirement plan <br/>
<a id="pl.166.5"></a><var>166.5</var>terminate on December 31 of the calendar year in which the actuarial valuation prepared <br/>
<a id="pl.166.6"></a><var>166.6</var>by the approved actuary under sections 
         <statute_ref>356.214</statute_ref> and 
         <statute_ref>356.215</statute_ref> and the standards for <br/>
<a id="pl.166.7"></a><var>166.7</var>actuarial work promulgated by the Legislative Commission on Pensions and Retirement <br/>
<a id="pl.166.8"></a><var>166.8</var>indicates that the market value of assets of the retirement plan equals or exceeds 90<br/>
<a id="pl.166.9"></a><var>166.9</var> 85 percent of the actuarial accrued liability of the retirement plan and increases under <br/>
<a id="pl.166.10"></a><var>166.10</var>subdivision 1 paragraph (c) recommence after that date.<br/>
<a id="pl.166.11"></a><var>166.11</var>(c) Retirement annuity, disability benefit, or survivor benefit recipients of the State <br/>
<a id="pl.166.12"></a><var>166.12</var>Patrol retirement plan are entitled to a postretirement adjustment annually on January <br/>
<a id="pl.166.13"></a><var>166.13</var>1, as follows:<br/>
<a id="pl.166.14"></a><var>166.14</var>(1) a postretirement increase of 1.5 percent must be applied each year, effective on <br/>
<a id="pl.166.15"></a><var>166.15</var>January 1, to the monthly annuity or benefit of each annuitant or benefit recipient who <br/>
<a id="pl.166.16"></a><var>166.16</var>has been receiving an annuity or a benefit for at least 18 full months before the January 1 <br/>
<a id="pl.166.17"></a><var>166.17</var>increase; and<br/>
<a id="pl.166.18"></a><var>166.18</var>(2) for each annuitant or benefit recipient who has been receiving an annuity or a <br/>
<a id="pl.166.19"></a><var>166.19</var>benefit for at least six full months, an annual postretirement increase of 1/12 of 1.5 percent <br/>
<a id="pl.166.20"></a><var>166.20</var>for each month that the person has been receiving an annuity or benefit must be applied, <br/>
<a id="pl.166.21"></a><var>166.21</var>effective January 1, following the calendar year in which the person has been retired for at <br/>
<a id="pl.166.22"></a><var>166.22</var>least six months, but has been retired for less than 18 months.<br/>
<a id="pl.166.23"></a><var>166.23</var>(d) Increases under paragraph (c) for the State Patrol retirement plan terminate on <br/>
<a id="pl.166.24"></a><var>166.24</var>December 31 of the calendar year in which the actuarial valuation prepared by the approved <br/>
<a id="pl.166.25"></a><var>166.25</var>actuary under sections 
<statute_ref>356.214</statute_ref> and 
<statute_ref>356.215</statute_ref> and the standards for actuarial work adopted by <br/>
<a id="pl.166.26"></a><var>166.26</var>the Legislative Commission on Pensions and Retirement indicates that the market value of <br/>
<a id="pl.166.27"></a><var>166.27</var>assets of the retirement plan equals or exceeds 90 percent of the actuarial accrued liability <br/>
<a id="pl.166.28"></a><var>166.28</var>of the retirement plan and increases under subdivision 1 recommence after that date.<br/>
<a id="pl.166.29"></a><var>166.29</var>(c) (e) An increase in annuity or benefit payments under this subdivision must be <br/>
<a id="pl.166.30"></a><var>166.30</var>made automatically unless written notice is filed by the annuitant or benefit recipient <br/>
<a id="pl.166.31"></a><var>166.31</var>with the executive director of the applicable covered retirement plan requesting that the <br/>
<a id="pl.166.32"></a><var>166.32</var>increase not be made.<br/>
<a id="pl.166.33"></a><var>166.33</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2013.<br/>
<br/>
<a id="bill.9.11.0"></a><a id="pl.166.34"></a><var>166.34</var>    Sec. 11. <b> REPEALER.</b><br/>
<a id="pl.166.35"></a><var>166.35</var>Minnesota Statutes 2012, section 352B.11, subdivision 2c, is repealed.<br/>
<a id="pl.167.1"></a><var>167.1</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2013.<br/>
<br/>
<a id="bill.10.0.0"></a>

<a id="bill.10.1.0"></a><a id="pl.167.4"></a><var>167.4</var>    Section 1. Minnesota Statutes 2012, section 353.01, subdivision 10, is amended to read:<br/>
<a id="pl.167.5"></a><var>167.5</var>    Subd. 10. <b>Salary.</b> (a) Subject to the limitations of section 
         <statute_ref>356.611</statute_ref>, "salary" means:<br/>
<a id="pl.167.6"></a><var>167.6</var>    (1) the wages or periodic compensation of payable to a public employee, by the <br/>
<a id="pl.167.7"></a><var>167.7</var>employing governmental subdivision before:<br/>
<a id="pl.167.8"></a><var>167.8</var>    (i) employee retirement deductions that are designated as picked-up contributions <br/>
<a id="pl.167.9"></a><var>167.9</var>under section 356.62;<br/>
<a id="pl.167.10"></a><var>167.10</var>    (ii) any employee-elected  deductions for deferred compensation, supplemental <br/>
<a id="pl.167.11"></a><var>167.11</var>retirement plans, or other voluntary salary reduction programs, and also means "wages" <br/>
<a id="pl.167.12"></a><var>167.12</var>and includes net income from fees that would have otherwise been available as a cash <br/>
<a id="pl.167.13"></a><var>167.13</var>payment to the employee; and<br/>
<a id="pl.167.14"></a><var>167.14</var>(iii) employee deductions for contributions to a supplemental plan or to a <br/>
<a id="pl.167.15"></a><var>167.15</var>governmental trust established under section 356.24, subdivision 1, clause (7), to save for <br/>
<a id="pl.167.16"></a><var>167.16</var>postretirement health care expenses,  unless otherwise excluded under paragraph (b);<br/>
<a id="pl.167.17"></a><var>167.17</var>    (2) for a public employee who is covered by a supplemental retirement plan under <br/>
<a id="pl.167.18"></a><var>167.18</var>section 
         <statute_ref>356.24, subdivision 1</statute_ref>, clause (8), (9), or (10), which require all plan contributions <br/>
<a id="pl.167.19"></a><var>167.19</var>be made by or (12), the employer, the contribution contributions to the applicable <br/>
<a id="pl.167.20"></a><var>167.20</var>supplemental retirement plan when an agreement between the parties establishes that the <br/>
<a id="pl.167.21"></a><var>167.21</var>contribution contributions will either result in a mandatory reduction of employees' wages <br/>
<a id="pl.167.22"></a><var>167.22</var>through payroll withholdings, or be made in lieu of an amount that would otherwise be <br/>
<a id="pl.167.23"></a><var>167.23</var>paid as wages; and<br/>
<a id="pl.167.24"></a><var>167.24</var>    (3) for a public employee who has prior service covered by a local police or <br/>
<a id="pl.167.25"></a><var>167.25</var>firefighters relief association that has consolidated with the Public Employees Retirement <br/>
<a id="pl.167.26"></a><var>167.26</var>Association or to which section 
         <statute_ref>353.665</statute_ref> applies and who has elected coverage either <br/>
<a id="pl.167.27"></a><var>167.27</var>under the public employees police and fire fund benefit plan under section 
         <statute_ref>353A.08 <br/>
</statute_ref><a id="pl.167.28"></a><var>167.28</var>following the consolidation or under section 
         <statute_ref>353.665, subdivision 4</statute_ref>, the rate of salary <br/>
<a id="pl.167.29"></a><var>167.29</var>upon which member contributions to the special fund of the relief association were made <br/>
<a id="pl.167.30"></a><var>167.30</var>prior to the effective date of the consolidation as specified by law and by bylaw provisions <br/>
<a id="pl.167.31"></a><var>167.31</var>governing the relief association on the date of the initiation of the consolidation procedure <br/>
<a id="pl.167.32"></a><var>167.32</var>and the actual periodic compensation of the public employee after the effective date of <br/>
<a id="pl.167.33"></a><var>167.33</var>consolidation.;<br/>
<a id="pl.167.34"></a><var>167.34</var>(4) a payment from a public employer through a grievance proceeding, settlement, <br/>
<a id="pl.167.35"></a><var>167.35</var>or court order that is attached to a specific earnings period in which the employee's regular <br/>
<a id="pl.168.1"></a><var>168.1</var>salary was not earned or paid to the member due to a suspension or a period of involuntary <br/>
<a id="pl.168.2"></a><var>168.2</var>termination that is not a wrongful discharge under section 356.50; provided the amount is <br/>
<a id="pl.168.3"></a><var>168.3</var>not less than the equivalent of the average of the hourly  base salary rate in effect during <br/>
<a id="pl.168.4"></a><var>168.4</var>the last six months of allowable service prior to the suspension or period of involuntary <br/>
<a id="pl.168.5"></a><var>168.5</var>termination, plus any applicable increases awarded during the period that would have been <br/>
<a id="pl.168.6"></a><var>168.6</var>paid under a collective bargaining agreement or personnel policy but for the suspension <br/>
<a id="pl.168.7"></a><var>168.7</var>or involuntary termination, multiplied by the average number of regular hours for which <br/>
<a id="pl.168.8"></a><var>168.8</var>the employee was compensated  during the six months of allowable service prior to the <br/>
<a id="pl.168.9"></a><var>168.9</var>suspension or period of involuntary termination, but not to exceed the compensation that <br/>
<a id="pl.168.10"></a><var>168.10</var>the public employee would have earned if regularly employed during the applicable period;<br/>
<a id="pl.168.11"></a><var>168.11</var>(5) the amount paid to a member who is absent from employment by reason of <br/>
<a id="pl.168.12"></a><var>168.12</var>personal, parental, or military leave of absence if equivalent to the hourly base salary <br/>
<a id="pl.168.13"></a><var>168.13</var>rate in effect during the six months of allowable service, or portions thereof, prior to the <br/>
<a id="pl.168.14"></a><var>168.14</var>leave, multiplied by the average number of regular hours for which the employee was <br/>
<a id="pl.168.15"></a><var>168.15</var>compensated during the six months of allowable service prior to the applicable leave of <br/>
<a id="pl.168.16"></a><var>168.16</var>absence;<br/>
<a id="pl.168.17"></a><var>168.17</var>(6) the amount paid to a member who is absent from employment by reason of an <br/>
<a id="pl.168.18"></a><var>168.18</var>authorized medical leave of absence if specified in advance to be at least one-half but <br/>
<a id="pl.168.19"></a><var>168.19</var>no more than equal to the earnings the member received, on which contributions were <br/>
<a id="pl.168.20"></a><var>168.20</var>reported and allowable service credited during the six months immediately preceding <br/>
<a id="pl.168.21"></a><var>168.21</var>the medical leave of absence; and<br/>
<a id="pl.168.22"></a><var>168.22</var>    (7) for a public employee who receives performance or merit bonus payment under <br/>
<a id="pl.168.23"></a><var>168.23</var>a written compensation plan, policy, or collective bargaining agreement in addition <br/>
<a id="pl.168.24"></a><var>168.24</var>to regular salary or in lieu of regular salary increases, the compensation paid to the <br/>
<a id="pl.168.25"></a><var>168.25</var>employee for attaining or exceeding performance goals, duties, or measures during a <br/>
<a id="pl.168.26"></a><var>168.26</var>specified period of employment.<br/>
<a id="pl.168.27"></a><var>168.27</var>    (b) Salary does not mean:<br/>
<a id="pl.168.28"></a><var>168.28</var>    (1) the fees paid to district court reporters,;<br/>
<a id="pl.168.29"></a><var>168.29</var>    (2) unused annual leave, vacation, or sick leave payments, in the form of lump-sum <br/>
<a id="pl.168.30"></a><var>168.30</var>or periodic payments,; <br/>
<a id="pl.168.31"></a><var>168.31</var>    (3) for the donor, payment to another person of the value of hours donated under a <br/>
<a id="pl.168.32"></a><var>168.32</var>benevolent vacation, personal, or sick leave donation program;<br/>
<a id="pl.168.33"></a><var>168.33</var>    (4) any form of severance payments, or retirement incentive payments;<br/>
<a id="pl.168.34"></a><var>168.34</var>    (5) an allowance payment or per diem payments for or reimbursement of expenses,;<br/>
<a id="pl.168.35"></a><var>168.35</var>    (6) lump-sum settlements not attached to a specific earnings period, or;<br/>
<a id="pl.169.1"></a><var>169.1</var>    (7)  workers' compensation payments or disability insurance payments, including <br/>
<a id="pl.169.2"></a><var>169.2</var>payments from employer self-insurance arrangements;<br/>
<a id="pl.169.3"></a><var>169.3</var>    (2) (8) employer-paid amounts used by an employee toward the cost of insurance <br/>
<a id="pl.169.4"></a><var>169.4</var>coverage, employer-paid fringe benefits, flexible spending accounts, cafeteria plans, health <br/>
<a id="pl.169.5"></a><var>169.5</var>care expense accounts, day care expenses, or any payments in lieu of any employer-paid <br/>
<a id="pl.169.6"></a><var>169.6</var>group insurance coverage, including the difference between single and family rates that <br/>
<a id="pl.169.7"></a><var>169.7</var>may be paid to a member with single coverage and certain amounts determined by the <br/>
<a id="pl.169.8"></a><var>169.8</var>executive director to be ineligible;<br/>
<a id="pl.169.9"></a><var>169.9</var>(9) employer-paid fringe benefits, including, but not limited to:<br/>
<a id="pl.169.10"></a><var>169.10</var>(i) employer-paid premiums or supplemental contributions for employees for all <br/>
<a id="pl.169.11"></a><var>169.11</var>types of insurance;<br/>
<a id="pl.169.12"></a><var>169.12</var>(ii) membership dues or fees for the use of fitness or recreational facilities;<br/>
<a id="pl.169.13"></a><var>169.13</var>(iii) incentive payments or cash awards relating to a wellness program;<br/>
<a id="pl.169.14"></a><var>169.14</var>(iv) the value of any nonmonetary benefits;<br/>
<a id="pl.169.15"></a><var>169.15</var>(v) any form of payment made in lieu of an employer-paid fringe benefit;<br/>
<a id="pl.169.16"></a><var>169.16</var>(vi) an employer-paid amount made to a deferred compensation or tax-sheltered <br/>
<a id="pl.169.17"></a><var>169.17</var>annuity program; and<br/>
<a id="pl.169.18"></a><var>169.18</var>(vii) any amount paid by the employer as a supplement to salary, either as a <br/>
<a id="pl.169.19"></a><var>169.19</var>lump-sum amount or a fixed or matching amount paid on a recurring basis, that is not <br/>
<a id="pl.169.20"></a><var>169.20</var>available to the employee as cash;<br/>
<a id="pl.169.21"></a><var>169.21</var>    (3) (10) the amount equal to that which the employing governmental subdivision <br/>
<a id="pl.169.22"></a><var>169.22</var>would otherwise pay toward single or family insurance coverage for a covered employee <br/>
<a id="pl.169.23"></a><var>169.23</var>when, through a contract or agreement with some but not all employees, the employer:<br/>
<a id="pl.169.24"></a><var>169.24</var>    (i) discontinues, or for new hires does not provide, payment toward the cost of the <br/>
<a id="pl.169.25"></a><var>169.25</var>employee's selected insurance coverages under a group plan offered by the employer;<br/>
<a id="pl.169.26"></a><var>169.26</var>    (ii) makes the employee solely responsible for all contributions toward the cost of <br/>
<a id="pl.169.27"></a><var>169.27</var>the employee's selected insurance coverages under a group plan offered by the employer, <br/>
<a id="pl.169.28"></a><var>169.28</var>including any amount the employer makes toward other employees' selected insurance <br/>
<a id="pl.169.29"></a><var>169.29</var>coverages under a group plan offered by the employer; and<br/>
<a id="pl.169.30"></a><var>169.30</var>    (iii) provides increased salary rates for employees who do not have any <br/>
<a id="pl.169.31"></a><var>169.31</var>employer-paid group insurance coverages;<br/>
<a id="pl.169.32"></a><var>169.32</var>    (4) (11) except as provided in section 
         <statute_ref>353.86</statute_ref> or 
         <statute_ref>353.87</statute_ref>, compensation of any <br/>
<a id="pl.169.33"></a><var>169.33</var>kind paid to volunteer ambulance service personnel or volunteer firefighters, as defined <br/>
<a id="pl.169.34"></a><var>169.34</var>in subdivision 35 or 36;<br/>
<a id="pl.169.35"></a><var>169.35</var>    (5) (12) the amount of compensation that exceeds the limitation provided in section <br/>
<statute_ref><a id="pl.169.36"></a><var>169.36</var>356.611
         </statute_ref>; and<br/>
<a id="pl.170.1"></a><var>170.1</var>    (6) (13) amounts paid by a federal or state grant for which the grant specifically <br/>
<a id="pl.170.2"></a><var>170.2</var>prohibits grant proceeds from being used to make pension plan contributions, unless the <br/>
<a id="pl.170.3"></a><var>170.3</var>contributions to the plan are made from sources other than the federal or state grant.; and<br/>
<a id="pl.170.4"></a><var>170.4</var>(14) bonus pay that is not performance or merit pay under paragraph (a), clause (6).<br/>
<a id="pl.170.5"></a><var>170.5</var>    (c) Amounts, other than those provided under paragraph (a), clause (4), provided to <br/>
<a id="pl.170.6"></a><var>170.6</var>an employee by the employer through a grievance proceeding, a court order, or a legal <br/>
<a id="pl.170.7"></a><var>170.7</var>settlement are salary only if the settlement or court order is reviewed by the executive <br/>
<a id="pl.170.8"></a><var>170.8</var>director and the amounts are determined by the executive director to be consistent with <br/>
<a id="pl.170.9"></a><var>170.9</var>paragraph (a) and prior determinations.<br/>
<a id="pl.170.10"></a><var>170.10</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.170.13"></a><var>170.13</var><b>FINANCIAL SOLVENCY MEASURES</b><br/>

<a id="bill.11.1.0"></a><a id="pl.170.14"></a><var>170.14</var>    Section 1. Minnesota Statutes 2012, section 353.01, subdivision 17a, is amended to read:<br/>
<a id="pl.170.15"></a><var>170.15</var>    Subd. 17a. <b>Average salary.</b> (a) "Average salary," for purposes of calculating a <br/>
<a id="pl.170.16"></a><var>170.16</var>retirement annuity under section 
         <statute_ref>353.29, subdivision 3</statute_ref>, means an amount equivalent to <br/>
<a id="pl.170.17"></a><var>170.17</var>the average of the highest salary of the member, police officer, or firefighter, whichever <br/>
<a id="pl.170.18"></a><var>170.18</var>applies, upon which employee contributions were paid for any five successive years of <br/>
<a id="pl.170.19"></a><var>170.19</var>allowable service, based on dates of salary periods as listed on salary deduction reports. <br/>
<a id="pl.170.20"></a><var>170.20</var>"Average salary" includes the salary of the employee during the period of covered <br/>
<a id="pl.170.21"></a><var>170.21</var>employment rendered after reaching the allowable service credit limit of section 353.651, <br/>
<a id="pl.170.22"></a><var>170.22</var>subdivision 3, paragraph (b). Average salary must be based upon all allowable service if <br/>
<a id="pl.170.23"></a><var>170.23</var>this service is less than five years.<br/>
<a id="pl.170.24"></a><var>170.24</var>(b) "Average salary" may not include any reduced salary paid during a period <br/>
<a id="pl.170.25"></a><var>170.25</var>in which the employee is entitled to benefit payments from workers' compensation for <br/>
<a id="pl.170.26"></a><var>170.26</var>temporary disability, unless the average salary is higher, including this period.<br/>
<a id="pl.170.27"></a><var>170.27</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.11.2.0"></a><a id="pl.170.28"></a><var>170.28</var>    Sec. 2. Minnesota Statutes 2012, section 353.01, subdivision 41, is amended to read:<br/>
<a id="pl.170.29"></a><var>170.29</var>    Subd. 41. <b>Duty disability.</b> "Duty disability," physical or psychological, means a <br/>
<a id="pl.170.30"></a><var>170.30</var>condition that is expected to prevent a member, for a period of not less than 12 months, <br/>
<a id="pl.170.31"></a><var>170.31</var>from performing the normal duties of the position held by a person who is a member of the <br/>
<a id="pl.170.32"></a><var>170.32</var>public employees police and fire retirement plan, and that is the direct result of an injury <br/>
<a id="pl.170.33"></a><var>170.33</var>incurred during, or a disease arising out of, the performance of normal duties or the actual <br/>
<a id="pl.171.1"></a><var>171.1</var>performance of less frequent inherently dangerous duties, either of which are specific to <br/>
<a id="pl.171.2"></a><var>171.2</var>protecting the property and personal safety of others and that present inherent dangers that <br/>
<a id="pl.171.3"></a><var>171.3</var>are specific to the positions covered by the public employees police and fire retirement plan.<br/>
<a id="pl.171.4"></a><var>171.4</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.171.5"></a><var>171.5</var>    Sec. 3. Minnesota Statutes 2012, section 353.01, subdivision 47, is amended to read:<br/>
<a id="pl.171.6"></a><var>171.6</var>    Subd. 47. <b>Vesting.</b> (a) "Vesting" means obtaining a nonforfeitable entitlement <br/>
<a id="pl.171.7"></a><var>171.7</var>to an annuity or benefit from a retirement plan administered by the Public Employees <br/>
<a id="pl.171.8"></a><var>171.8</var>Retirement Association by having credit for sufficient allowable service under paragraph <br/>
<a id="pl.171.9"></a><var>171.9</var>(b) or, (c), or (d), whichever applies.<br/>
<a id="pl.171.10"></a><var>171.10</var>(b) For purposes of qualifying for an annuity or benefit as a basic or coordinated plan <br/>
<a id="pl.171.11"></a><var>171.11</var>member of the general employees retirement plan of the Public Employees Retirement <br/>
<a id="pl.171.12"></a><var>171.12</var>Association:<br/>
<a id="pl.171.13"></a><var>171.13</var>(1) a public employee who first became a member of the association before July <br/>
<a id="pl.171.14"></a><var>171.14</var>1, 2010, is 100 percent vested when the person has accrued credit for not less than three <br/>
<a id="pl.171.15"></a><var>171.15</var>years of allowable service as defined under subdivision 16; and<br/>
<a id="pl.171.16"></a><var>171.16</var>(2) a public employee who first becomes a member of the association after June 30, <br/>
<a id="pl.171.17"></a><var>171.17</var>2010, is 100 percent vested when the person has accrued credit for not less than five years <br/>
<a id="pl.171.18"></a><var>171.18</var>of allowable service as defined under subdivision 16.<br/>
<a id="pl.171.19"></a><var>171.19</var>(c) For purposes of qualifying for an annuity or benefit as a member of the police <br/>
<a id="pl.171.20"></a><var>171.20</var>and fire plan or a member of the local government correctional employees retirement plan:<br/>
<a id="pl.171.21"></a><var>171.21</var>(1) a public employee who first became a member of the association before July <br/>
<a id="pl.171.22"></a><var>171.22</var>1, 2010, is 100 percent vested when the person has accrued credit for not less than three <br/>
<a id="pl.171.23"></a><var>171.23</var>years of allowable service as defined under subdivision 16; and<br/>
<a id="pl.171.24"></a><var>171.24</var>(2) a public employee who first becomes a member of the association after June <br/>
<a id="pl.171.25"></a><var>171.25</var>30, 2010, is vested at the following percentages when the person has accrued credited <br/>
<a id="pl.171.26"></a><var>171.26</var>allowable service as defined under subdivision 16, as follows:<br/>
<a id="pl.171.27"></a><var>171.27</var>(i) 50 percent after five years;<br/>
<a id="pl.171.28"></a><var>171.28</var>(ii) 60 percent after six years;<br/>
<a id="pl.171.29"></a><var>171.29</var>(iii) 70 percent after seven years;<br/>
<a id="pl.171.30"></a><var>171.30</var>(iv) 80 percent after eight years;<br/>
<a id="pl.171.31"></a><var>171.31</var>(v) 90 percent after nine years; and<br/>
<a id="pl.171.32"></a><var>171.32</var>(vi) 100 percent after ten years.<br/>
<a id="pl.171.33"></a><var>171.33</var>(d) For purposes of qualifying for an annuity or benefit as a member of the public <br/>
<a id="pl.171.34"></a><var>171.34</var>employees police and fire retirement plan:<br/>
<a id="pl.172.1"></a><var>172.1</var>(1) a public employee who first became a member of the association before July <br/>
<a id="pl.172.2"></a><var>172.2</var>1, 2010, is 100 percent vested when the person has accrued credit for not less than three <br/>
<a id="pl.172.3"></a><var>172.3</var>years of allowable service as defined under subdivision 16;<br/>
<a id="pl.172.4"></a><var>172.4</var>(2) a public employee who first becomes a member of the association after June 30, <br/>
<a id="pl.172.5"></a><var>172.5</var>2010, and before July 1, 2014, is vested at the following percentages when the person has <br/>
<a id="pl.172.6"></a><var>172.6</var>accrued credited allowable service as defined under subdivision 16, as follows:<br/>
<a id="pl.172.7"></a><var>172.7</var>(i) 50 percent after five years;<br/>
<a id="pl.172.8"></a><var>172.8</var>(ii) 60 percent after six years;<br/>
<a id="pl.172.9"></a><var>172.9</var>(iii) 70 percent after seven years;<br/>
<a id="pl.172.10"></a><var>172.10</var>(iv) 80 percent after eight years;<br/>
<a id="pl.172.11"></a><var>172.11</var>(v) 90 percent after nine years; and<br/>
<a id="pl.172.12"></a><var>172.12</var>(vi) 100 percent after ten years; and<br/>
<a id="pl.172.13"></a><var>172.13</var>(3) a public employee who first becomes a member of the association after June <br/>
<a id="pl.172.14"></a><var>172.14</var>30, 2014, is vested at the following percentages when the person has accrued credited <br/>
<a id="pl.172.15"></a><var>172.15</var>allowable service as defined under subdivision 16, as follows:<br/>
<a id="pl.172.16"></a><var>172.16</var>(i) 50 percent after ten years;<br/>
<a id="pl.172.17"></a><var>172.17</var>(ii) 55 percent after 11 years;<br/>
<a id="pl.172.18"></a><var>172.18</var>(iii) 60 percent after 12 years;<br/>
<a id="pl.172.19"></a><var>172.19</var>(iv) 65 percent after 13 years;<br/>
<a id="pl.172.20"></a><var>172.20</var>(v) 70 percent after 14 years;<br/>
<a id="pl.172.21"></a><var>172.21</var>(vi) 75 percent after 15 years;<br/>
<a id="pl.172.22"></a><var>172.22</var>(vii) 80 percent after 16 years;<br/>
<a id="pl.172.23"></a><var>172.23</var>(viii) 85 percent after 17 years;<br/>
<a id="pl.172.24"></a><var>172.24</var>(ix) 90 percent after 18 years;<br/>
<a id="pl.172.25"></a><var>172.25</var>(x) 95 percent after 19 years; and<br/>
<a id="pl.172.26"></a><var>172.26</var>(xi) 100 percent after 20 or more years.<br/>
<br/>
<a id="bill.11.4.0"></a><a id="pl.172.27"></a><var>172.27</var>    Sec. 4. Minnesota Statutes 2012, section 353.031, subdivision 4, is amended to read:<br/>
<a id="pl.172.28"></a><var>172.28</var>    Subd. 4. <b>Additional requirements; eligibility for police and fire or local </b><br/>
<a id="pl.172.29"></a><var>172.29</var><b>government correctional service </b><b>retirement </b><b>plan disability benefits.</b> (a) If an <br/>
<a id="pl.172.30"></a><var>172.30</var>application for disability benefits is filed within two years of the date of the injury or the <br/>
<a id="pl.172.31"></a><var>172.31</var>onset of the illness that gave rise to the disability application, the application must be <br/>
<a id="pl.172.32"></a><var>172.32</var>supported by evidence that the applicant is unable to perform the duties of the position <br/>
<a id="pl.172.33"></a><var>172.33</var>held by the applicant on the date of the injury or the onset of the illness causing the <br/>
<a id="pl.172.34"></a><var>172.34</var>disability. The employer must provide evidence indicating whether the applicant is able or <br/>
<a id="pl.172.35"></a><var>172.35</var>unable to perform the duties of the position held on the date of the injury or onset of the <br/>
<a id="pl.173.1"></a><var>173.1</var>illness causing the disability and the specifications, a clear explanation of any duties that <br/>
<a id="pl.173.2"></a><var>173.2</var>the individual can or cannot perform, and an explanation of why the employer may or may <br/>
<a id="pl.173.3"></a><var>173.3</var>not authorize continued employment to the applicant in the current or other position.<br/>
<a id="pl.173.4"></a><var>173.4</var>    (b) If an application for disability benefits is filed more than two years after the <br/>
<a id="pl.173.5"></a><var>173.5</var>date of injury or the onset of an illness causing the disability, the application must be <br/>
<a id="pl.173.6"></a><var>173.6</var>supported by evidence that the applicant is unable to perform the most recent duties that <br/>
<a id="pl.173.7"></a><var>173.7</var>are were expected to be performed by the applicant during the 90 days before preceding <br/>
<a id="pl.173.8"></a><var>173.8</var>the filing of last day the application applicant performed services for the employer. The <br/>
<a id="pl.173.9"></a><var>173.9</var>employer must provide evidence of the duties that are were expected to be performed by <br/>
<a id="pl.173.10"></a><var>173.10</var>the applicant during the 90 days before preceding the filing of last day the application<br/>
<a id="pl.173.11"></a><var>173.11</var> applicant performed services, whether the applicant can or cannot perform those duties <br/>
<a id="pl.173.12"></a><var>173.12</var>overall, and the specifications a clear explanation of any duties that the applicant can <br/>
<a id="pl.173.13"></a><var>173.13</var>or cannot perform, and an explanation of why the employer may or may not authorize <br/>
<a id="pl.173.14"></a><var>173.14</var>continued employment to the applicant in the current or other position.<br/>
<a id="pl.173.15"></a><var>173.15</var>    (c) Any report supporting a claim to disability benefits under section 
         <statute_ref>353.656</statute_ref> or <br/>
<statute_ref><a id="pl.173.16"></a><var>173.16</var>353E.06
         </statute_ref> must specifically relate the disability to its cause; and for any claim to duty <br/>
<a id="pl.173.17"></a><var>173.17</var>disability from an injury or illness arising out of an act of duty, the report must state the <br/>
<a id="pl.173.18"></a><var>173.18</var>specific act of duty giving rise to the claim, and relate the cause of disability to inherently <br/>
<a id="pl.173.19"></a><var>173.19</var>dangerous duties specific tasks or functions required to be performed by the employee in <br/>
<a id="pl.173.20"></a><var>173.20</var>fulfilling the employee's duty-related acts which must be specific to the inherent dangers of <br/>
<a id="pl.173.21"></a><var>173.21</var>the positions eligible for membership in covered by the public employees police and fire <br/>
<a id="pl.173.22"></a><var>173.22</var>fund plan and the local government correctional service retirement plan. Any report that <br/>
<a id="pl.173.23"></a><var>173.23</var>does not relate the cause of disability to specific acts or functions inherently dangerous <br/>
<a id="pl.173.24"></a><var>173.24</var>duties performed by the employee may not be relied upon as evidence to support eligibility <br/>
<a id="pl.173.25"></a><var>173.25</var>for benefits and may be disregarded in the executive director's decision-making process.<br/>
<a id="pl.173.26"></a><var>173.26</var>    (d) Any application for duty disability must be supported by a first report of injury as <br/>
<a id="pl.173.27"></a><var>173.27</var>defined in section 
         <statute_ref>176.231</statute_ref>.<br/>
<a id="pl.173.28"></a><var>173.28</var>    (e) If a member who has applied for and been approved for disability benefits before <br/>
<a id="pl.173.29"></a><var>173.29</var>the termination of service does not terminate service or is not placed on an authorized <br/>
<a id="pl.173.30"></a><var>173.30</var>leave of absence as certified by the governmental subdivision within 45 days following <br/>
<a id="pl.173.31"></a><var>173.31</var>the date on which the application is approved, the application shall be canceled. If an <br/>
<a id="pl.173.32"></a><var>173.32</var>approved application for disability benefits has been canceled, a subsequent application <br/>
<a id="pl.173.33"></a><var>173.33</var>for disability benefits may not be filed on the basis of the same medical condition for a <br/>
<a id="pl.173.34"></a><var>173.34</var>minimum of one year from the date on which the previous application was canceled.<br/>
<a id="pl.173.35"></a><var>173.35</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.11.5.0"></a><a id="pl.174.1"></a><var>174.1</var>    Sec. 5. Minnesota Statutes 2012, section 353.35, subdivision 1, is amended to read:<br/>
<a id="pl.174.2"></a><var>174.2</var>    Subdivision 1. <b>Refund rights.</b> (a) Except as provided in paragraph (b), when any <br/>
<a id="pl.174.3"></a><var>174.3</var>former member accepts a refund, all existing service credits and all rights and benefits to <br/>
<a id="pl.174.4"></a><var>174.4</var>which the person was entitled prior to the acceptance of the refund must terminate.<br/>
<a id="pl.174.5"></a><var>174.5</var>(b) A refund under section 353.651, subdivision 3, paragraph (c), does not result in a <br/>
<a id="pl.174.6"></a><var>174.6</var>forfeiture of salary credit for the allowable service credit covered by the refund.<br/>
<a id="pl.174.7"></a><var>174.7</var>(c) The rights and benefits of a former member must not be restored until the person <br/>
<a id="pl.174.8"></a><var>174.8</var>returns to active service and acquires at least six months of allowable service credit <br/>
<a id="pl.174.9"></a><var>174.9</var>after taking the last refund and repays the refund or refunds taken and interest received <br/>
<a id="pl.174.10"></a><var>174.10</var>under section 
         <statute_ref>353.34</statute_ref>, subdivisions 1 and 2, plus interest at an annual rate of 8.5 percent <br/>
<a id="pl.174.11"></a><var>174.11</var>compounded annually. If the person elects to restore service credit in a particular fund <br/>
<a id="pl.174.12"></a><var>174.12</var>from which the person has taken more than one refund, the person must repay all refunds <br/>
<a id="pl.174.13"></a><var>174.13</var>to that fund. All refunds must be repaid within six months of the last date of termination <br/>
<a id="pl.174.14"></a><var>174.14</var>of public service.<br/>
<a id="pl.174.15"></a><var>174.15</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.11.6.0"></a><a id="pl.174.16"></a><var>174.16</var>    Sec. 6. Minnesota Statutes 2012, section 353.65, subdivision 2, is amended to read:<br/>
<a id="pl.174.17"></a><var>174.17</var>    Subd. 2. <b>Employee contribution.</b> (a) For members other than members who were <br/>
<a id="pl.174.18"></a><var>174.18</var>active members of the former Minneapolis Firefighters Relief Association on December <br/>
<a id="pl.174.19"></a><var>174.19</var>29, 2011, or for members other than members who were active members of the former <br/>
<a id="pl.174.20"></a><var>174.20</var>Minneapolis Police Relief Association on December 29, 2011, the employee contribution <br/>
<a id="pl.174.21"></a><var>174.21</var>is 9.4 percent an amount equal to the following percentage of the total salary of the each <br/>
<a id="pl.174.22"></a><var>174.22</var>member in calendar year 2010 and is, as follows: 9.6 percent of the salary of the member <br/>
<a id="pl.174.23"></a><var>174.23</var>in each before calendar year after 2010 2014; 10.2 percent in calendar year 2014; and 10.8 <br/>
<a id="pl.174.24"></a><var>174.24</var>percent in calendar year 2015 and thereafter.<br/>
<a id="pl.174.25"></a><var>174.25</var>(b) For members who were active members of the former Minneapolis Firefighters <br/>
<a id="pl.174.26"></a><var>174.26</var>Relief Association on December 29, 2011, the employee contribution is an amount <br/>
<a id="pl.174.27"></a><var>174.27</var>equal to eight percent of the monthly unit value under section 
         <statute_ref>353.01, subdivision 10a</statute_ref>, <br/>
<a id="pl.174.28"></a><var>174.28</var>multiplied by 80 and expressed as a biweekly amount for each member. The employee <br/>
<a id="pl.174.29"></a><var>174.29</var>contribution made by a member with at least 25 years of service credit as an active <br/>
<a id="pl.174.30"></a><var>174.30</var>member of the former Minneapolis Firefighters Relief Association must be deposited in <br/>
<a id="pl.174.31"></a><var>174.31</var>the postretirement health care savings account established under section 
         <statute_ref>352.98</statute_ref>.<br/>
<a id="pl.174.32"></a><var>174.32</var>(c) For members who were active members of the former Minneapolis Police Relief <br/>
<a id="pl.174.33"></a><var>174.33</var>Association on December 29, 2011, the employee contribution is an amount equal to eight <br/>
<a id="pl.174.34"></a><var>174.34</var>percent of the monthly unit value under section 
         <statute_ref>353.01, subdivision 10b</statute_ref>, multiplied by 80 <br/>
<a id="pl.174.35"></a><var>174.35</var>and expressed as a biweekly amount for each member. The employee contribution made <br/>
<a id="pl.175.1"></a><var>175.1</var>by a member with at least 25 years of service credit as an active member of the former <br/>
<a id="pl.175.2"></a><var>175.2</var>Minneapolis Police Relief Association must be deposited in the postretirement health care <br/>
<a id="pl.175.3"></a><var>175.3</var>savings account established under section 
         <statute_ref>352.98</statute_ref>.<br/>
<a id="pl.175.4"></a><var>175.4</var>(d) Contributions under this section must be made by deduction from salary in <br/>
<a id="pl.175.5"></a><var>175.5</var>the manner provided in subdivision 4. Where any portion of a member's salary is paid <br/>
<a id="pl.175.6"></a><var>175.6</var>from other than public funds, the member's employee contribution is based on the total <br/>
<a id="pl.175.7"></a><var>175.7</var>salary received from all sources.<br/>
<a id="pl.175.8"></a><var>175.8</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.11.7.0"></a><a id="pl.175.9"></a><var>175.9</var>    Sec. 7. Minnesota Statutes 2012, section 353.65, subdivision 3, is amended to read:<br/>
<a id="pl.175.10"></a><var>175.10</var>    Subd. 3. <b>Employer contribution.</b> (a) With respect to members other than members <br/>
<a id="pl.175.11"></a><var>175.11</var>who were active members of the former Minneapolis Firefighters Relief Association on <br/>
<a id="pl.175.12"></a><var>175.12</var>December 29, 2011, or for members other than members who were active members of <br/>
<a id="pl.175.13"></a><var>175.13</var>the former Minneapolis Police Relief Association on December 29, 2011, the employer <br/>
<a id="pl.175.14"></a><var>175.14</var>contribution is 14.1 percent an amount equal to the following percentage of the total salary <br/>
<a id="pl.175.15"></a><var>175.15</var>of the each member in calendar year 2010 and is, as follows: 14.4 percent of the salary of <br/>
<a id="pl.175.16"></a><var>175.16</var>the member in each before calendar year after 2010 2014; 15.3 percent in calendar year <br/>
<a id="pl.175.17"></a><var>175.17</var>2014; and 16.2 percent in calendar year 2015 and thereafter.<br/>
<a id="pl.175.18"></a><var>175.18</var>(b) With respect to members who were active members of the former Minneapolis <br/>
<a id="pl.175.19"></a><var>175.19</var>Firefighters Relief Association on December 29, 2011, the employer contribution is an <br/>
<a id="pl.175.20"></a><var>175.20</var>amount equal to the amount of the member contributions under subdivision 2, paragraph <br/>
<a id="pl.175.21"></a><var>175.21</var>(b).<br/>
<a id="pl.175.22"></a><var>175.22</var>(c) With respect to members who were active members of the former Minneapolis <br/>
<a id="pl.175.23"></a><var>175.23</var>Police Relief Association on December 29, 2011, the employer contribution is an amount <br/>
<a id="pl.175.24"></a><var>175.24</var>equal to the amount of the member contributions under subdivision 2, paragraph (c).<br/>
<a id="pl.175.25"></a><var>175.25</var>(d) Contributions under this subdivision must be made from funds available to the <br/>
<a id="pl.175.26"></a><var>175.26</var>employing subdivision by the means and in the manner provided in section 
         <statute_ref>353.28</statute_ref>.<br/>
<a id="pl.175.27"></a><var>175.27</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.11.8.0"></a><a id="pl.175.28"></a><var>175.28</var>    Sec. 8. Minnesota Statutes 2012, section 353.651, subdivision 3, is amended to read:<br/>
<a id="pl.175.29"></a><var>175.29</var>    Subd. 3. <b>Retirement annuity formula.</b> (a) The average salary as defined in <br/>
<a id="pl.175.30"></a><var>175.30</var>section 
         <statute_ref>353.01, subdivision 17a</statute_ref>, multiplied by the percent specified in section 
         <statute_ref>356.315, <br/>
<a id="pl.175.31"></a><var>175.31</var>subdivision 6
         </statute_ref>, per year multiplied by years of allowable service, multiplied by the <br/>
<a id="pl.175.32"></a><var>175.32</var>applicable vesting percentage indicated in section 353.01, subdivision 47, determines the <br/>
<a id="pl.175.33"></a><var>175.33</var>amount of the normal retirement annuity. If the member has earned allowable service <br/>
<a id="pl.176.1"></a><var>176.1</var>for performing services other than those of a police officer or firefighter, the annuity <br/>
<a id="pl.176.2"></a><var>176.2</var>representing that service must be computed under sections 
         <statute_ref>353.29</statute_ref> and 
         <statute_ref>353.30</statute_ref>.<br/>
<a id="pl.176.3"></a><var>176.3</var>(b) For a member first enrolled in the public employees police and fire retirement <br/>
<a id="pl.176.4"></a><var>176.4</var>plan after June 30, 2014, the average salary as defined in section 353.01, subdivision 17a, <br/>
<a id="pl.176.5"></a><var>176.5</var>paragraph (a), includes salary for all years for which contributions have been reported to <br/>
<a id="pl.176.6"></a><var>176.6</var>the public employees police and fire retirement plan, but allowable service included in <br/>
<a id="pl.176.7"></a><var>176.7</var>the calculation is limited to 33 years and the normal retirement annuity must not exceed <br/>
<a id="pl.176.8"></a><var>176.8</var>99 percent of the average salary.<br/>
<a id="pl.176.9"></a><var>176.9</var>(c) When the annuity begins for members of the public employees police and fire <br/>
<a id="pl.176.10"></a><var>176.10</var>retirement plan enrolled after June 30, 2014, a prorated share of the contributions for <br/>
<a id="pl.176.11"></a><var>176.11</var>allowable service exceeding 33 years must be refunded to the member. The prorated <br/>
<a id="pl.176.12"></a><var>176.12</var>share of the contributions to be refunded is determined by multiplying the accumulated <br/>
<a id="pl.176.13"></a><var>176.13</var>deductions paid by the member to the public employees police and fire retirement plan by <br/>
<a id="pl.176.14"></a><var>176.14</var>a percentage determined using the number of months of service in excess of 396 as the <br/>
<a id="pl.176.15"></a><var>176.15</var>numerator and the total number of months of allowable service on which contributions <br/>
<a id="pl.176.16"></a><var>176.16</var>were reported as the denominator. Interest as defined in section 353.34, subdivision 2, <br/>
<a id="pl.176.17"></a><var>176.17</var>is to be applied to the prorated share of contributions from the first of the 397th month <br/>
<a id="pl.176.18"></a><var>176.18</var>of allowable service reported to the public employees police and fire retirement plan to <br/>
<a id="pl.176.19"></a><var>176.19</var>the first of the month the annuity begins.<br/>
<a id="pl.176.20"></a><var>176.20</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.11.9.0"></a><a id="pl.176.21"></a><var>176.21</var>    Sec. 9. Minnesota Statutes 2012, section 353.651, subdivision 4, is amended to read:<br/>
<a id="pl.176.22"></a><var>176.22</var>    Subd. 4. <b>Early retirement.</b> (a) A person who becomes a public employees police <br/>
<a id="pl.176.23"></a><var>176.23</var>and fire retirement plan member after June 30, 2007, or a former member who is reinstated <br/>
<a id="pl.176.24"></a><var>176.24</var>as a member of the plan after that date, who is at least 50 years of age and who is at least <br/>
<a id="pl.176.25"></a><var>176.25</var>partially vested under section 
         <statute_ref>353.01, subdivision 47</statute_ref>, upon the termination of public <br/>
<a id="pl.176.26"></a><var>176.26</var>service before July 1, 2014, if the person is other than a county sheriff or after January 4, <br/>
<a id="pl.176.27"></a><var>176.27</var>2015, if the person is a county sheriff is entitled upon application to a retirement annuity <br/>
<a id="pl.176.28"></a><var>176.28</var>equal to the normal annuity calculated under subdivision 3, reduced by two-tenths of one <br/>
<a id="pl.176.29"></a><var>176.29</var>percent for each month that the member is under age 55 at the time of retirement.<br/>
<a id="pl.176.30"></a><var>176.30</var>    (b) Upon the termination of public service before July 1, 2014, if the person is <br/>
<a id="pl.176.31"></a><var>176.31</var>other than a county sheriff or upon the termination of public service before January 5, <br/>
<a id="pl.176.32"></a><var>176.32</var>2015, if the person is a county sheriff, any public employees police and fire retirement <br/>
<a id="pl.176.33"></a><var>176.33</var>plan member who first became a member of the plan before July 1, 2007, and who is <br/>
<a id="pl.176.34"></a><var>176.34</var>not specified in paragraph (a), upon attaining at least 50 years of age with at least three <br/>
<a id="pl.176.35"></a><var>176.35</var>years of allowable service is entitled upon application to a retirement annuity equal to the <br/>
<a id="pl.177.1"></a><var>177.1</var>normal annuity calculated under subdivision 3, reduced by one-tenth of one percent for <br/>
<a id="pl.177.2"></a><var>177.2</var>each month that the member is under age 55 at the time of retirement.<br/>
<a id="pl.177.3"></a><var>177.3</var>(c) A person other than a county sheriff who is a member of the public employees <br/>
<a id="pl.177.4"></a><var>177.4</var>police and fire retirement plan on or after July 1, 2014, or a county sheriff who is a <br/>
<a id="pl.177.5"></a><var>177.5</var>member of the public employees police and fire retirement plan on or after January 5, <br/>
<a id="pl.177.6"></a><var>177.6</var>2015, and who is at least 50 years old and is at least partially vested under section 353.01, <br/>
<a id="pl.177.7"></a><var>177.7</var>subdivision 47, and whose benefit effective date is after July 1, 2014, if other than a <br/>
<a id="pl.177.8"></a><var>177.8</var>county sheriff or after January 4, 2015, if a county sheriff and on or before July 1, 2019, is <br/>
<a id="pl.177.9"></a><var>177.9</var>entitled upon application to a retirement annuity equal to the normal annuity calculated <br/>
<a id="pl.177.10"></a><var>177.10</var>under subdivision 3, reduced for each month the member is under age 55 at the time of <br/>
<a id="pl.177.11"></a><var>177.11</var>retirement by applying a blended monthly rate that is equivalent to the sum of:<br/>
<a id="pl.177.12"></a><var>177.12</var>(1) one-sixtieth of the annual rate of five percent, prorated for each month the <br/>
<a id="pl.177.13"></a><var>177.13</var>person's benefit effective date is after July 1, 2014, or after December 31, 2014, whichever <br/>
<a id="pl.177.14"></a><var>177.14</var>applies; and<br/>
<a id="pl.177.15"></a><var>177.15</var>(2) one-sixtieth of the annual rate provided under paragraph (a) or (b), whichever <br/>
<a id="pl.177.16"></a><var>177.16</var>applies, for each month the person's benefit effective date is before July 1, 2019.<br/>
<a id="pl.177.17"></a><var>177.17</var>(d) A person other than a county sheriff who is a member of the public employees <br/>
<a id="pl.177.18"></a><var>177.18</var>police and fire retirement plan on or after July 1, 2014, or a county sheriff who is a member <br/>
<a id="pl.177.19"></a><var>177.19</var>of the public employees police and fire retirement plan on or after January 5, 2015, and <br/>
<a id="pl.177.20"></a><var>177.20</var>who is at least 50 years old and is at least partially vested under section 353.01, subdivision <br/>
<a id="pl.177.21"></a><var>177.21</var>47, whose benefit effective date is after July 1, 2019, is entitled, upon application, to a <br/>
<a id="pl.177.22"></a><var>177.22</var>retirement annuity equal to the normal annuity calculated under subdivision 3, reduced by <br/>
<a id="pl.177.23"></a><var>177.23</var>five percent annually, prorated for each month that the member is under age 55.<br/>
<a id="pl.177.24"></a><var>177.24</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.11.10.0"></a><a id="pl.177.25"></a><var>177.25</var>    Sec. 10. Minnesota Statutes 2012, section 353.657, subdivision 2a, is amended to read:<br/>
<a id="pl.177.26"></a><var>177.26</var>    Subd. 2a. <b>Death while eligible survivor benefit.</b> (a) If a member or former member <br/>
<a id="pl.177.27"></a><var>177.27</var>who has attained the age of at least 50 years and either who is vested under section <br/>
<statute_ref><a id="pl.177.28"></a><var>177.28</var>353.01, subdivision 47
         </statute_ref>, or who has credit for at least 30 years of allowable service, <br/>
<a id="pl.177.29"></a><var>177.29</var>regardless of age attained, dies before the annuity or disability benefit becomes payable, <br/>
<a id="pl.177.30"></a><var>177.30</var>notwithstanding any designation of beneficiary to the contrary, the surviving spouse may <br/>
<a id="pl.177.31"></a><var>177.31</var>elect to receive a death while eligible survivor benefit.<br/>
<a id="pl.177.32"></a><var>177.32</var>    (b) Notwithstanding the definition of surviving spouse in section 
         <statute_ref>353.01, subdivision <br/>
<a id="pl.177.33"></a><var>177.33</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.177.34"></a><var>177.34</var>eligible survivor benefit if stipulated under the terms of a marriage dissolution decree <br/>
<a id="pl.177.35"></a><var>177.35</var>filed with the association. If there is no surviving spouse or child or children, a former <br/>
<a id="pl.178.1"></a><var>178.1</var>spouse may be entitled to a lump-sum refund payment under section 
         <statute_ref>353.32, subdivision <br/>
<a id="pl.178.2"></a><var>178.2</var>1
         </statute_ref>, if provided for in a marriage dissolution decree but not a death while eligible survivor <br/>
<a id="pl.178.3"></a><var>178.3</var>benefit despite the terms of a marriage dissolution decree filed with the association.<br/>
<a id="pl.178.4"></a><var>178.4</var>    (c) The benefit may be elected instead of a refund with interest under section 
         <statute_ref>353.32, <br/>
<a id="pl.178.5"></a><var>178.5</var>subdivision 1
         </statute_ref>, or surviving spouse benefits otherwise payable under subdivisions 1 and <br/>
<a id="pl.178.6"></a><var>178.6</var>2. The benefit must be an annuity equal to the 100 percent joint and survivor annuity <br/>
<a id="pl.178.7"></a><var>178.7</var>which the member could have qualified for on the date of death, computed as provided in <br/>
<a id="pl.178.8"></a><var>178.8</var>sections 353.651, subdivisions 2 and subdivision 3, and 
         <statute_ref>353.30, subdivision 3</statute_ref>.<br/>
<a id="pl.178.9"></a><var>178.9</var>    (d) The surviving spouse may apply for the annuity at any time after the date <br/>
<a id="pl.178.10"></a><var>178.10</var>on which the deceased employee would have attained the required age for retirement <br/>
<a id="pl.178.11"></a><var>178.11</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.178.12"></a><var>178.12</var>subdivision 2
         </statute_ref>, apply to a deferred annuity payable under this subdivision.<br/>
<a id="pl.178.13"></a><var>178.13</var>    (e) No payment accrues beyond the end of the month in which entitlement to <br/>
<a id="pl.178.14"></a><var>178.14</var>such annuity has terminated. An amount equal to the excess, if any, of the accumulated <br/>
<a id="pl.178.15"></a><var>178.15</var>contributions which were credited to the account of the deceased employee over and <br/>
<a id="pl.178.16"></a><var>178.16</var>above the total of the annuities paid and payable to the surviving spouse must be paid to <br/>
<a id="pl.178.17"></a><var>178.17</var>the deceased member's last designated beneficiary or, if none, to the legal representative of <br/>
<a id="pl.178.18"></a><var>178.18</var>the estate of such deceased member.<br/>
<a id="pl.178.19"></a><var>178.19</var>    (f) Any member may request in writing, with the signed consent of the spouse, that <br/>
<a id="pl.178.20"></a><var>178.20</var>this subdivision not apply and that payment be made only to the designated beneficiary, as <br/>
<a id="pl.178.21"></a><var>178.21</var>otherwise provided by this chapter.<br/>
<a id="pl.178.22"></a><var>178.22</var>    (g) For a member who is employed as a full-time firefighter by the Department of <br/>
<a id="pl.178.23"></a><var>178.23</var>Military Affairs of the state of Minnesota, allowable service as a full-time state Military <br/>
<a id="pl.178.24"></a><var>178.24</var>Affairs Department firefighter credited by the Minnesota State Retirement System may be <br/>
<a id="pl.178.25"></a><var>178.25</var>used in meeting the minimum allowable service requirement of this subdivision.<br/>
<a id="pl.178.26"></a><var>178.26</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.11.11.0"></a><a id="pl.178.27"></a><var>178.27</var>    Sec. 11. Minnesota Statutes 2012, section 353.657, subdivision 3a, is amended to read:<br/>
<a id="pl.178.28"></a><var>178.28</var>    Subd. 3a. <b>Maximum and minimum family benefits.</b> (a) The maximum monthly <br/>
<a id="pl.178.29"></a><var>178.29</var>benefit per family must not exceed the following percentages of the member's average <br/>
<a id="pl.178.30"></a><var>178.30</var>monthly salary as specified in subdivision 3:<br/>
<a id="pl.178.31"></a><var>178.31</var>    (1) 80 percent, if the member's death was a line of duty death; or<br/>
<a id="pl.178.32"></a><var>178.32</var>    (2) 70 percent, if the member's death was not a line of duty death or occurred while <br/>
<a id="pl.178.33"></a><var>178.33</var>the member was receiving a disability benefit that accrued before July 1, 2007.<br/>
<a id="pl.178.34"></a><var>178.34</var>    (b) The minimum monthly benefit per family, including the joint and survivor <br/>
<a id="pl.178.35"></a><var>178.35</var>optional annuity under subdivision 2a, and section 
         <statute_ref>353.656, subdivision 1a</statute_ref>, must not be <br/>
<a id="pl.179.1"></a><var>179.1</var>less than the following percentage of the member's average monthly salary as specified in <br/>
<a id="pl.179.2"></a><var>179.2</var>subdivision 3:<br/>
<a id="pl.179.3"></a><var>179.3</var>    (1) 60 percent, if the death was a line of duty death; or<br/>
<a id="pl.179.4"></a><var>179.4</var>    (2) 50 percent, if the death was not a line of duty death or occurred while the member <br/>
<a id="pl.179.5"></a><var>179.5</var>was receiving a disability benefit that accrued before July 1, 2007.<br/>
<a id="pl.179.6"></a><var>179.6</var>    (c) If the maximum under paragraph (a) is exceeded, the monthly benefit of the <br/>
<a id="pl.179.7"></a><var>179.7</var>joint annuitant, surviving spouse, and dependent children, as applicable, must each be <br/>
<a id="pl.179.8"></a><var>179.8</var>reduced to the amount necessary proportionately so that the total family benefit does <br/>
<a id="pl.179.9"></a><var>179.9</var>not exceed the applicable maximum. The joint and survivor optional annuity, surviving <br/>
<a id="pl.179.10"></a><var>179.10</var>spouse, or dependent children benefit, as applicable, must be restored, plus applicable <br/>
<a id="pl.179.11"></a><var>179.11</var>postretirement adjustments under Minnesota Statutes 2008, section 
         <statute_ref>356.41</statute_ref> or section <br/>
<statute_ref><a id="pl.179.12"></a><var>179.12</var>356.415
         </statute_ref>, as the dependent child or children become no longer dependent under section <br/>
<statute_ref><a id="pl.179.13"></a><var>179.13</var>353.01, subdivision 15
         </statute_ref>, or in the event of the death of the joint and survivor annuity <br/>
<a id="pl.179.14"></a><var>179.14</var>recipient or the surviving spouse.<br/>
<a id="pl.179.15"></a><var>179.15</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.11.12.0"></a><a id="pl.179.16"></a><var>179.16</var>    Sec. 12. Minnesota Statutes 2012, section 353E.001, subdivision 1, is amended to read:<br/>
<a id="pl.179.17"></a><var>179.17</var>    Subdivision 1. <b>Duty disability.</b> "Duty disability," physical or psychological, means <br/>
<a id="pl.179.18"></a><var>179.18</var>a condition that is expected to prevent a member, for a period of not less than 12 months, <br/>
<a id="pl.179.19"></a><var>179.19</var>from performing the normal duties of a local government correctional service employee as <br/>
<a id="pl.179.20"></a><var>179.20</var>defined under section 
         <statute_ref>353E.02</statute_ref> and that is the direct result of an injury incurred during, or <br/>
<a id="pl.179.21"></a><var>179.21</var>a disease arising out of, the performance of normal duties or the actual performance of <br/>
<a id="pl.179.22"></a><var>179.22</var>less frequent inherently dangerous duties, either of which are specific to protecting the <br/>
<a id="pl.179.23"></a><var>179.23</var>property and personal safety of others and that present inherent dangers that are specific to <br/>
<a id="pl.179.24"></a><var>179.24</var>the positions covered by the local government correctional service retirement plan.<br/>
<a id="pl.179.25"></a><var>179.25</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.11.13.0"></a><a id="pl.179.26"></a><var>179.26</var>    Sec. 13. Minnesota Statutes 2012, section 356.415, subdivision 1b, is amended to read:<br/>
<a id="pl.179.27"></a><var>179.27</var>    Subd. 1b. <b>Annual postretirement adjustments; PERA; general employees </b><br/>
<a id="pl.179.28"></a><var>179.28</var><b>retirement plan and local government correctional retirement plan.</b> (a) Retirement <br/>
<a id="pl.179.29"></a><var>179.29</var>annuity, disability benefit, or survivor benefit recipients of the general employees <br/>
<a id="pl.179.30"></a><var>179.30</var>retirement plan of the Public Employees Retirement Association and the local government <br/>
<a id="pl.179.31"></a><var>179.31</var>correctional service retirement plan are entitled to a postretirement adjustment annually <br/>
<a id="pl.179.32"></a><var>179.32</var>on January 1, as follows:<br/>
<a id="pl.180.1"></a><var>180.1</var>(1) for January 1, 2011, and each successive January 1 until funding stability is <br/>
<a id="pl.180.2"></a><var>180.2</var>restored for the applicable retirement plan, a postretirement increase of one percent must <br/>
<a id="pl.180.3"></a><var>180.3</var>be applied each year, effective on January 1, to the monthly annuity or benefit amount of <br/>
<a id="pl.180.4"></a><var>180.4</var>each annuitant or benefit recipient who has been receiving an annuity or benefit for at least <br/>
<a id="pl.180.5"></a><var>180.5</var>12 full months as of the current June 30;<br/>
<a id="pl.180.6"></a><var>180.6</var>(2) for January 1, 2011, and each successive January 1 until funding stability is <br/>
<a id="pl.180.7"></a><var>180.7</var>restored for the applicable retirement plan, for each annuitant or benefit recipient who has <br/>
<a id="pl.180.8"></a><var>180.8</var>been receiving an annuity or a benefit for at least one full month, but less than 12 full <br/>
<a id="pl.180.9"></a><var>180.9</var>months as of the current June 30, an annual postretirement increase of 1/12 of one percent <br/>
<a id="pl.180.10"></a><var>180.10</var>for each month the person has been receiving an annuity or benefit must be applied;<br/>
<a id="pl.180.11"></a><var>180.11</var>(3) for each January 1 following the restoration of funding stability for the applicable <br/>
<a id="pl.180.12"></a><var>180.12</var>retirement plan, a postretirement increase of 2.5 percent must be applied each year, <br/>
<a id="pl.180.13"></a><var>180.13</var>effective January 1, to the monthly annuity or benefit amount of each annuitant or benefit <br/>
<a id="pl.180.14"></a><var>180.14</var>recipient who has been receiving an annuity or benefit for at least 12 full months as of <br/>
<a id="pl.180.15"></a><var>180.15</var>the current June 30; and<br/>
<a id="pl.180.16"></a><var>180.16</var>(4) for each January 1 following restoration of funding stability for the applicable <br/>
<a id="pl.180.17"></a><var>180.17</var>retirement plan, for each annuity or benefit recipient who has been receiving an annuity or <br/>
<a id="pl.180.18"></a><var>180.18</var>a benefit for at least one full month, but less than 12 full months as of the current June <br/>
<a id="pl.180.19"></a><var>180.19</var>30, an annual postretirement increase of 1/12 of 2.5 percent for each month the person <br/>
<a id="pl.180.20"></a><var>180.20</var>has been receiving an annuity or benefit must be applied.<br/>
<a id="pl.180.21"></a><var>180.21</var>(b) Funding stability is restored when the market value of assets of the applicable <br/>
<a id="pl.180.22"></a><var>180.22</var>retirement plan equals or exceeds 90 percent of the actuarial accrued liabilities of the <br/>
<a id="pl.180.23"></a><var>180.23</var>applicable plan in the two most recent prior consecutive actuarial valuation valuations <br/>
<a id="pl.180.24"></a><var>180.24</var>prepared under section 
         <statute_ref>356.215</statute_ref> and the standards for actuarial work by the approved <br/>
<a id="pl.180.25"></a><var>180.25</var>actuary retained by the Public Employees Retirement Association under section 
         <statute_ref>356.214</statute_ref>.<br/>
<a id="pl.180.26"></a><var>180.26</var>(c) If, after applying the increase as provided for in paragraph (a), clauses (3) <br/>
<a id="pl.180.27"></a><var>180.27</var>and (4), the market value of the applicable retirement plan is determined in the next <br/>
<a id="pl.180.28"></a><var>180.28</var>subsequent actuarial valuation prepared under section 
<statute_ref>356.215</statute_ref> to be less than 90 percent <br/>
<a id="pl.180.29"></a><var>180.29</var>of the actuarial accrued liability of any of the applicable Public Employees Retirement <br/>
<a id="pl.180.30"></a><var>180.30</var>Association plans, After having met the definition of funding stability under paragraph <br/>
<a id="pl.180.31"></a><var>180.31</var>(b), the increase provided in paragraph (a), clauses (1) and (2), are rather than an increase <br/>
<a id="pl.180.32"></a><var>180.32</var>under subdivision 1, is again to be applied as of the next successive January until funding <br/>
<a id="pl.180.33"></a><var>180.33</var>stability is again restored. in a subsequent year or years if the market value of assets of <br/>
<a id="pl.180.34"></a><var>180.34</var>the applicable plan equals or is less than:<br/>
<a id="pl.180.35"></a><var>180.35</var>(1) 85 percent of the actuarial accrued liabilities of the applicable plan for two <br/>
<a id="pl.180.36"></a><var>180.36</var>consecutive actuarial valuations; or<br/>
<a id="pl.181.1"></a><var>181.1</var>(2) 80 percent of the actuarial accrued liabilities of the applicable plan for the most <br/>
<a id="pl.181.2"></a><var>181.2</var>recent actuarial valuation.<br/>
<a id="pl.181.3"></a><var>181.3</var>(d) An increase in annuity or benefit payments under this section must be made <br/>
<a id="pl.181.4"></a><var>181.4</var>automatically unless written notice is filed by the annuitant or benefit recipient with the <br/>
<a id="pl.181.5"></a><var>181.5</var>executive director of the Public Employees Retirement Association requesting that the <br/>
<a id="pl.181.6"></a><var>181.6</var>increase not be made.<br/>
<a id="pl.181.7"></a><var>181.7</var>(e) The retirement annuity payable to a person who retires before becoming eligible <br/>
<a id="pl.181.8"></a><var>181.8</var>for Social Security benefits and who has elected the optional payment, as provided in <br/>
<a id="pl.181.9"></a><var>181.9</var>section 
         <statute_ref>353.29, subdivision 6</statute_ref>, must be treated as the sum of a period-certain retirement <br/>
<a id="pl.181.10"></a><var>181.10</var>annuity and a life retirement annuity for the purposes of any postretirement adjustment. <br/>
<a id="pl.181.11"></a><var>181.11</var>The period-certain retirement annuity plus the life retirement annuity must be the <br/>
<a id="pl.181.12"></a><var>181.12</var>annuity amount payable until age 62 for section 
         <statute_ref>353.29, subdivision 6</statute_ref>. A postretirement <br/>
<a id="pl.181.13"></a><var>181.13</var>adjustment granted on the period-certain retirement annuity must terminate when the <br/>
<a id="pl.181.14"></a><var>181.14</var>period-certain retirement annuity terminates.<br/>
<a id="pl.181.15"></a><var>181.15</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.11.14.0"></a><a id="pl.181.16"></a><var>181.16</var>    Sec. 14. Minnesota Statutes 2012, section 356.415, subdivision 1c, is amended to read:<br/>
<a id="pl.181.17"></a><var>181.17</var>    Subd. 1c. <b>Annual postretirement adjustments; PERA-police and fire.</b> (a) <br/>
<a id="pl.181.18"></a><var>181.18</var>Retirement annuity, disability benefit, or survivor benefit recipients of the public <br/>
<a id="pl.181.19"></a><var>181.19</var>employees police and fire retirement plan are entitled to a postretirement adjustment <br/>
<a id="pl.181.20"></a><var>181.20</var>annually on January 1, until funding stability is restored, as follows:<br/>
<a id="pl.181.21"></a><var>181.21</var>(1) for January 1, 2011, and for January 1, 2012, for each annuitant or benefit <br/>
<a id="pl.181.22"></a><var>181.22</var>recipient whose annuity or benefit effective date is on or before June 1, 2014, who has <br/>
<a id="pl.181.23"></a><var>181.23</var>been receiving the annuity or benefit for at least 12 full months as of the immediate <br/>
<a id="pl.181.24"></a><var>181.24</var>preceding June 30, an amount equal to one percent in each year; or<br/>
<a id="pl.181.25"></a><var>181.25</var>(2) for January 1, 2011, and for January 1, 2012, for each annuitant or benefit <br/>
<a id="pl.181.26"></a><var>181.26</var>recipient whose annuity or benefit effective date is on or before June 1, 2014, who has <br/>
<a id="pl.181.27"></a><var>181.27</var>been receiving the annuity or benefit for at least one full month, but not less than 11 <br/>
<a id="pl.181.28"></a><var>181.28</var>months, as of the immediate preceding June 30, an amount equal to 1/12 of one percent in <br/>
<a id="pl.181.29"></a><var>181.29</var>each year for each month of annuity or benefit receipt; and<br/>
<a id="pl.181.30"></a><var>181.30</var>(3) for January 1, 2013, and each successive January 1 that follows the loss of <br/>
<a id="pl.181.31"></a><var>181.31</var>funding stability as defined under paragraph (b) until funding stability as defined under <br/>
<a id="pl.181.32"></a><var>181.32</var>paragraph (b) is again restored, for each annuitant or benefit recipient whose annuity <br/>
<a id="pl.181.33"></a><var>181.33</var>or benefit effective date is after June 1, 2014, who has will have been receiving the an <br/>
<a id="pl.181.34"></a><var>181.34</var>annuity or benefit for at least 12 36 full months as of the immediate preceding June 30, <br/>
<a id="pl.181.35"></a><var>181.35</var>an amount equal to the percentage increase in the Consumer Price Index for urban wage <br/>
<a id="pl.182.1"></a><var>182.1</var>earners and clerical workers all items index published by the Bureau of Labor Statistics of <br/>
<a id="pl.182.2"></a><var>182.2</var>the United States Department of Labor between the immediate preceding June 30 and the <br/>
<a id="pl.182.3"></a><var>182.3</var>June 30 occurring 12 months previous, but not to exceed 1.5 one percent; or<br/>
<a id="pl.182.4"></a><var>182.4</var>(4) for January 1, 2013, and each successive January 1 that follows the loss of funding <br/>
<a id="pl.182.5"></a><var>182.5</var>stability as defined under paragraph (b) until funding stability as defined under paragraph <br/>
<a id="pl.182.6"></a><var>182.6</var>(b) is again restored, for each annuitant or benefit recipient whose annuity or benefit <br/>
<a id="pl.182.7"></a><var>182.7</var>effective date is after June 1, 2014, who has been receiving the annuity or benefit for at <br/>
<a id="pl.182.8"></a><var>182.8</var>least one 25 full month months, but less than 36 months as of the immediate preceding June <br/>
<a id="pl.182.9"></a><var>182.9</var>30, an amount equal to 1/12 of the percentage increase in the Consumer Price Index for <br/>
<a id="pl.182.10"></a><var>182.10</var>urban wage earners and clerical workers all items index published by the Bureau of Labor <br/>
<a id="pl.182.11"></a><var>182.11</var>Statistics of the United States Department of Labor between the immediate preceding June <br/>
<a id="pl.182.12"></a><var>182.12</var>30 and the June 30 occurring 12 months previous for each full month of annuity or benefit <br/>
<a id="pl.182.13"></a><var>182.13</var>receipt, but not to exceed 1/12 of 1.5 one percent for each full month of annuity or benefit <br/>
<a id="pl.182.14"></a><var>182.14</var>receipt; during the fiscal year in which the annuity or benefit was effective.<br/>
<a id="pl.182.15"></a><var>182.15</var>(5) for (b) Retirement annuity, disability benefit, or survivor benefit recipients of <br/>
<a id="pl.182.16"></a><var>182.16</var>the public employees police and fire retirement plan are entitled to a postretirement <br/>
<a id="pl.182.17"></a><var>182.17</var>adjustment annually on each January 1 following the restoration of funding stability as <br/>
<a id="pl.182.18"></a><var>182.18</var>defined under paragraph (b) (c) and during the continuation of funding stability as defined <br/>
<a id="pl.182.19"></a><var>182.19</var>under paragraph (b) (c), as follows:<br/>
<a id="pl.182.20"></a><var>182.20</var>(1) for each annuitant or benefit recipient who has been receiving the annuity or <br/>
<a id="pl.182.21"></a><var>182.21</var>benefit for at least 12 36 full months as of the immediate preceding June 30, an amount <br/>
<a id="pl.182.22"></a><var>182.22</var>equal to the percentage increase in the Consumer Price Index for urban wage earners and <br/>
<a id="pl.182.23"></a><var>182.23</var>clerical workers all items index published by the Bureau of Labor Statistics of the United <br/>
<a id="pl.182.24"></a><var>182.24</var>States Department of Labor between the immediate preceding June 30 and the June 30 <br/>
<a id="pl.182.25"></a><var>182.25</var>occurring 12 months previous, but not to exceed 2.5 percent; and<br/>
<a id="pl.182.26"></a><var>182.26</var>(6) for each January 1 following the restoration of funding stability as defined under <br/>
<a id="pl.182.27"></a><var>182.27</var>paragraph (b) and during the continuation of funding stability as defined under paragraph <br/>
<a id="pl.182.28"></a><var>182.28</var>(b), (2) for each annuitant or benefit recipient who has been receiving the annuity or benefit <br/>
<a id="pl.182.29"></a><var>182.29</var>for at least one 25 full month months, but less than 36 full months, as of the immediate <br/>
<a id="pl.182.30"></a><var>182.30</var>preceding June 30, an amount equal to 1/12 of the percentage increase in the Consumer <br/>
<a id="pl.182.31"></a><var>182.31</var>Price Index for urban wage earners and clerical workers all items index published by <br/>
<a id="pl.182.32"></a><var>182.32</var>the Bureau of Labor Statistics of the United States Department of Labor between the <br/>
<a id="pl.182.33"></a><var>182.33</var>immediate preceding June 30 and the June 30 occurring 12 months previous for each full <br/>
<a id="pl.182.34"></a><var>182.34</var>month of annuity or benefit receipt during the fiscal year in which the annuity or benefit <br/>
<a id="pl.182.35"></a><var>182.35</var>was effective, but not to exceed 1/12 of 2.5 percent for each full month of annuity or <br/>
<a id="pl.182.36"></a><var>182.36</var>benefit receipt during the fiscal year in which the annuity or benefit was effective.<br/>
<a id="pl.183.1"></a><var>183.1</var>(b) (c) Funding stability is restored when the market value of assets of the public <br/>
<a id="pl.183.2"></a><var>183.2</var>employees police and fire retirement plan equals or exceeds 90 percent of the actuarial <br/>
<a id="pl.183.3"></a><var>183.3</var>accrued liabilities of the applicable plan in the two most recent prior consecutive actuarial <br/>
<a id="pl.183.4"></a><var>183.4</var>valuation valuations prepared under section 
         <statute_ref>356.215</statute_ref> and under the standards for actuarial <br/>
<a id="pl.183.5"></a><var>183.5</var>work of the Legislative Commission on Pensions and Retirement by the approved actuary <br/>
<a id="pl.183.6"></a><var>183.6</var>retained by the Public Employees Retirement Association under section 
         <statute_ref>356.214</statute_ref>.<br/>
<a id="pl.183.7"></a><var>183.7</var>(d) After having met the definition of funding stability under paragraph (c), a full <br/>
<a id="pl.183.8"></a><var>183.8</var>or prorated increase, as provided in paragraph (a), clause (1), (2), (3), or (4), whichever <br/>
<a id="pl.183.9"></a><var>183.9</var>applies, rather than adjustments under paragraph (b), is again applied in a subsequent year <br/>
<a id="pl.183.10"></a><var>183.10</var>or years if the market value of assets of the public employees police and fire retirement <br/>
<a id="pl.183.11"></a><var>183.11</var>plan equals or is less than:<br/>
<a id="pl.183.12"></a><var>183.12</var>(1) 85 percent of the actuarial accrued liabilities of the applicable plan for two <br/>
<a id="pl.183.13"></a><var>183.13</var>consecutive actuarial valuations; or<br/>
<a id="pl.183.14"></a><var>183.14</var>(2) 80 percent of the actuarial accrued liabilities of the applicable plan for the most <br/>
<a id="pl.183.15"></a><var>183.15</var>recent actuarial valuation.<br/>
<a id="pl.183.16"></a><var>183.16</var>(c) (e) An increase in annuity or benefit payments under this section must be made <br/>
<a id="pl.183.17"></a><var>183.17</var>automatically unless written notice is filed by the annuitant or benefit recipient with the <br/>
<a id="pl.183.18"></a><var>183.18</var>executive director of the Public Employees Retirement Association requesting that the <br/>
<a id="pl.183.19"></a><var>183.19</var>increase not be made.<br/>
<a id="pl.183.20"></a><var>183.20</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.12.0.0"></a>

<a id="pl.183.23"></a><var>183.23</var><b>REDUCTION FACTORS</b><br/>

<a id="bill.12.1.0"></a><a id="pl.183.24"></a><var>183.24</var>    Section 1. Minnesota Statutes 2012, section 354.44, subdivision 6, is amended to read:<br/>
<a id="pl.183.25"></a><var>183.25</var>    Subd. 6. <b>Computation of formula program retirement annuity.</b> (a) The formula <br/>
<a id="pl.183.26"></a><var>183.26</var>retirement annuity must be computed in accordance with the applicable provisions of the <br/>
<a id="pl.183.27"></a><var>183.27</var>formulas stated in paragraph (b) or (d) on the basis of each member's average salary under <br/>
<a id="pl.183.28"></a><var>183.28</var>section 
         <statute_ref>354.05, subdivision 13a</statute_ref>, for the period of the member's formula service credit.<br/>
<a id="pl.183.29"></a><var>183.29</var>    (b) This paragraph, in conjunction with paragraph (c), applies to a person who first <br/>
<a id="pl.183.30"></a><var>183.30</var>became a member of the association or a member of a pension fund listed in section <br/>
<statute_ref><a id="pl.183.31"></a><var>183.31</var>356.30, subdivision 3
         </statute_ref>, before July 1, 1989, unless paragraph (d), in conjunction with <br/>
<a id="pl.183.32"></a><var>183.32</var>paragraph (e), produces a higher annuity amount, in which case paragraph (d) applies. The <br/>
<a id="pl.183.33"></a><var>183.33</var>average salary as defined in section 
         <statute_ref>354.05, subdivision 13a</statute_ref>, multiplied by the following <br/>
<a id="pl.184.1"></a><var>184.1</var>percentages per year of formula service credit shall determine the amount of the annuity to <br/>
<a id="pl.184.2"></a><var>184.2</var>which the member qualifying therefor is entitled for service rendered before July 1, 2006:<br/>
<table>
<col width="50px"/>
<col width="2"/>
<col width="20"/>
<col width="1.5"/>
<col width="20"/>
<col width="1.5"/>
<col width="20"/>
<tr>
<td><a id="pl.184.3"></a><var>184.3</var><br/>
</td>
<td align="left" valign="top"></td>
<td align="left" valign="top"></td>
<td align="center" valign="top"></td>
<td align="left" valign="top">Coordinated Member<br/>
</td>
<td align="left" valign="top"></td>
<td align="left" valign="top">Basic Member<br/>
</td>
</tr>
<tr>
<td><a id="pl.184.4"></a><var>184.4</var><br/>
<a id="pl.184.5"></a><var>184.5</var><br/>
<a id="pl.184.6"></a><var>184.6</var><br/>
</td>
<td align="left" valign="top"></td>
<td align="left" valign="top">Each year of service during <br/>
                  		first ten<br/>
</td>
<td align="left" valign="top"></td>
<td align="left" valign="top">the percent specified <br/>
                  		in section 
                  <statute_ref>356.315</statute_ref>, <br/>
                  		subdivision 1, per year<br/>
</td>
<td align="left" valign="top"></td>
<td align="left" valign="top">the percent specified <br/>
                  		in section 
                  <statute_ref>356.315</statute_ref>, <br/>
                  		subdivision 3, per year<br/>
</td>
</tr>
<tr>
<td><a id="pl.184.7"></a><var>184.7</var><br/>
<a id="pl.184.8"></a><var>184.8</var><br/>
<a id="pl.184.9"></a><var>184.9</var><br/>
</td>
<td align="left" valign="top"></td>
<td align="left" valign="top">Each year of service <br/>
                  		thereafter<br/>
</td>
<td align="left" valign="top"></td>
<td align="left" valign="top">the percent specified <br/>
                  		in section 
                  <statute_ref>356.315</statute_ref>, <br/>
                  		subdivision 2, per year<br/>
</td>
<td align="left" valign="top"></td>
<td align="left" valign="top">the percent specified <br/>
                  		in section 
                  <statute_ref>356.315</statute_ref>, <br/>
                  		subdivision 4, per year<br/>
</td>
</tr>
</table><a id="pl.184.10"></a><var>184.10</var>    For service rendered on or after July 1, 2006, the average salary as defined in section <br/>
<statute_ref><a id="pl.184.11"></a><var>184.11</var>354.05
         </statute_ref>, subdivision 13a, multiplied by the following percentages per year of service credit, <br/>
<a id="pl.184.12"></a><var>184.12</var>determines the amount the annuity to which the member qualifying therefor is entitled:<br/>
<table>
<col width="50px"/>
<col width="2"/>
<col width="20"/>
<col width="1.5"/>
<col width="20"/>
<col width="1.5"/>
<col width="20"/>
<tr>
<td><a id="pl.184.13"></a><var>184.13</var><br/>
</td>
<td align="left" valign="top"></td>
<td align="left" valign="top"></td>
<td align="center" valign="top"></td>
<td align="left" valign="top">Coordinated Member<br/>
</td>
<td align="left" valign="top"></td>
<td align="left" valign="top">Basic Member<br/>
</td>
</tr>
<tr>
<td><a id="pl.184.14"></a><var>184.14</var><br/>
<a id="pl.184.15"></a><var>184.15</var><br/>
<a id="pl.184.16"></a><var>184.16</var><br/>
</td>
<td align="left" valign="top"></td>
<td align="left" valign="top">Each year of service during <br/>
                  		first ten<br/>
</td>
<td align="left" valign="top"></td>
<td align="left" valign="top">the percent specified <br/>
                  		in section 
                  <statute_ref>356.315</statute_ref>, <br/>
                  		subdivision 1a, per year<br/>
</td>
<td align="left" valign="top"></td>
<td align="left" valign="top">the percent specified <br/>
                  		in section 
                  <statute_ref>356.315</statute_ref>, <br/>
                  		subdivision 3, per year<br/>
</td>
</tr>
<tr>
<td><a id="pl.184.17"></a><var>184.17</var><br/>
<a id="pl.184.18"></a><var>184.18</var><br/>
<a id="pl.184.19"></a><var>184.19</var><br/>
</td>
<td align="left" valign="top"></td>
<td align="left" valign="top">Each year of service after <br/>
                  		ten years of service<br/>
</td>
<td align="left" valign="top"></td>
<td align="left" valign="top">the percent specified <br/>
                  		in section 
                  <statute_ref>356.315</statute_ref>, <br/>
                  		subdivision 2b, per year<br/>
</td>
<td align="left" valign="top"></td>
<td align="left" valign="top">the percent specified <br/>
                  		in section 
                  <statute_ref>356.315</statute_ref>, <br/>
                  		subdivision 4, per year<br/>
</td>
</tr>
</table><a id="pl.184.20"></a><var>184.20</var>    (c)(i) This paragraph applies only to a person who first became a member of the <br/>
<a id="pl.184.21"></a><var>184.21</var>association or a member of a pension fund listed in section 
         <statute_ref>356.30, subdivision 3</statute_ref>, before <br/>
<a id="pl.184.22"></a><var>184.22</var>July 1, 1989, and whose annuity is higher when calculated under paragraph (b), in <br/>
<a id="pl.184.23"></a><var>184.23</var>conjunction with this paragraph than when calculated under paragraph (d), in conjunction <br/>
<a id="pl.184.24"></a><var>184.24</var>with paragraph (e).<br/>
<a id="pl.184.25"></a><var>184.25</var>    (ii) Where any member retires prior to normal retirement age under a formula <br/>
<a id="pl.184.26"></a><var>184.26</var>annuity, the member shall be paid a retirement annuity in an amount equal to the normal <br/>
<a id="pl.184.27"></a><var>184.27</var>annuity provided in paragraph (b) reduced by one-quarter of one percent for each month <br/>
<a id="pl.184.28"></a><var>184.28</var>that the member is under normal retirement age at the time of retirement except that for <br/>
<a id="pl.184.29"></a><var>184.29</var>any member who has 30 or more years of allowable service credit, the reduction shall be <br/>
<a id="pl.184.30"></a><var>184.30</var>applied only for each month that the member is under age 62.<br/>
<a id="pl.184.31"></a><var>184.31</var>    (iii) Any member whose attained age plus credited allowable service totals 90 years <br/>
<a id="pl.184.32"></a><var>184.32</var>is entitled, upon application, to a retirement annuity in an amount equal to the normal <br/>
<a id="pl.184.33"></a><var>184.33</var>annuity provided in paragraph (b), without any reduction by reason of early retirement.<br/>
<a id="pl.184.34"></a><var>184.34</var>    (d) This paragraph applies to a member who has become at least 55 years old and <br/>
<a id="pl.184.35"></a><var>184.35</var>first became a member of the association after June 30, 1989, and to any other member <br/>
<a id="pl.184.36"></a><var>184.36</var>who has become at least 55 years old and whose annuity amount when calculated under <br/>
<a id="pl.184.37"></a><var>184.37</var>this paragraph and in conjunction with paragraph (e), is higher than it is when calculated <br/>
<a id="pl.184.38"></a><var>184.38</var>under paragraph (b), in conjunction with paragraph (c). For a basic member, the average <br/>
<a id="pl.184.39"></a><var>184.39</var>salary, as defined in section 
         <statute_ref>354.05, subdivision 13a</statute_ref>, multiplied by the percent specified <br/>
<a id="pl.185.1"></a><var>185.1</var>by section 
         <statute_ref>356.315, subdivision 4</statute_ref>, for each year of service for a basic member shall <br/>
<a id="pl.185.2"></a><var>185.2</var>determine the amount of the retirement annuity to which the basic member is entitled. <br/>
<a id="pl.185.3"></a><var>185.3</var>The annuity of a basic member who was a member of the former Minneapolis Teachers <br/>
<a id="pl.185.4"></a><var>185.4</var>Retirement Fund Association as of June 30, 2006, must be determined according to the <br/>
<a id="pl.185.5"></a><var>185.5</var>annuity formula under the articles of incorporation of the former Minneapolis Teachers <br/>
<a id="pl.185.6"></a><var>185.6</var>Retirement Fund Association in effect as of that date. For a coordinated member, the <br/>
<a id="pl.185.7"></a><var>185.7</var>average salary, as defined in section 
         <statute_ref>354.05</statute_ref>, subdivision 13a, multiplied by the percent <br/>
<a id="pl.185.8"></a><var>185.8</var>specified in section 
         <statute_ref>356.315</statute_ref>, subdivision 2, for each year of service rendered before July <br/>
<a id="pl.185.9"></a><var>185.9</var>1, 2006, and by the percent specified in section 
         <statute_ref>356.315</statute_ref>, subdivision 2b, for each year of <br/>
<a id="pl.185.10"></a><var>185.10</var>service rendered on or after July 1, 2006, determines the amount of the retirement annuity <br/>
<a id="pl.185.11"></a><var>185.11</var>to which the coordinated member is entitled.<br/>
<a id="pl.185.12"></a><var>185.12</var>    (e) This paragraph applies to a person who has become at least 55 years old and first <br/>
<a id="pl.185.13"></a><var>185.13</var>becomes a member of the association after June 30, 1989, and to any other member who <br/>
<a id="pl.185.14"></a><var>185.14</var>has become at least 55 years old and whose annuity is higher when calculated under <br/>
<a id="pl.185.15"></a><var>185.15</var>paragraph (d) in conjunction with this paragraph than when calculated under paragraph <br/>
<a id="pl.185.16"></a><var>185.16</var>(b), in conjunction with paragraph (c). An employee who retires under the formula annuity <br/>
<a id="pl.185.17"></a><var>185.17</var>before the normal retirement age shall be paid the normal annuity provided in paragraph <br/>
<a id="pl.185.18"></a><var>185.18</var>(d) reduced so that the reduced annuity is the actuarial equivalent of the annuity that <br/>
<a id="pl.185.19"></a><var>185.19</var>would be payable to the employee if the employee deferred receipt of the annuity and the <br/>
<a id="pl.185.20"></a><var>185.20</var>annuity amount were augmented at an annual rate of three percent compounded annually <br/>
<a id="pl.185.21"></a><var>185.21</var>from the day the annuity begins to accrue until the normal retirement age if the employee <br/>
<a id="pl.185.22"></a><var>185.22</var>became an employee before July 1, 2006, and at 2.5 percent compounded annually if the <br/>
<a id="pl.185.23"></a><var>185.23</var>employee becomes an employee after June 30, 2006. Except in regards to section 354.46, <br/>
<a id="pl.185.24"></a><var>185.24</var>this paragraph remains in effect until June 30, 2015.<br/>
<a id="pl.185.25"></a><var>185.25</var>(f) After June 30, 2020, this paragraph applies to a person who has become at least <br/>
<a id="pl.185.26"></a><var>185.26</var>55 years old and first becomes a member of the association after June 30, 1989, and to any <br/>
<a id="pl.185.27"></a><var>185.27</var>other member who has become at least 55 years old and whose annuity is higher when <br/>
<a id="pl.185.28"></a><var>185.28</var>calculated under paragraph (d) in conjunction with this paragraph than when calculated <br/>
<a id="pl.185.29"></a><var>185.29</var>under paragraph (b), in conjunction with paragraph (c). An employee who retires under <br/>
<a id="pl.185.30"></a><var>185.30</var>the formula annuity before the normal retirement age is entitled to receive the normal <br/>
<a id="pl.185.31"></a><var>185.31</var>annuity provided in paragraph (d). For a person who is at least age 62 or older and has at <br/>
<a id="pl.185.32"></a><var>185.32</var>least 30 years of service, the annuity must be reduced by an early reduction factor of six <br/>
<a id="pl.185.33"></a><var>185.33</var>percent per year of the annuity that would be payable to the employee if the employee <br/>
<a id="pl.185.34"></a><var>185.34</var>deferred receipt of the annuity and the annuity amount were augmented at an annual rate <br/>
<a id="pl.185.35"></a><var>185.35</var>of three percent compounded annually from the day the annuity begins to accrue until the <br/>
<a id="pl.185.36"></a><var>185.36</var>normal retirement age if the employee became an employee before July 1, 2006, and at 2.5 <br/>
<a id="pl.186.1"></a><var>186.1</var>percent compounded annually if the employee became an employee after June 30, 2006. <br/>
<a id="pl.186.2"></a><var>186.2</var>For a person who is not at least age 62 or older and does not have at least 30 years of <br/>
<a id="pl.186.3"></a><var>186.3</var>service, the annuity would be reduced by an early reduction factor of four percent per year <br/>
<a id="pl.186.4"></a><var>186.4</var>for ages 55 through 59 and seven percent per year of the annuity that would be payable <br/>
<a id="pl.186.5"></a><var>186.5</var>to the employee if the employee deferred receipt of the annuity and the annuity amount <br/>
<a id="pl.186.6"></a><var>186.6</var>were augmented at an annual rate of three percent compounded annually from the day <br/>
<a id="pl.186.7"></a><var>186.7</var>the annuity begins to accrue until the normal retirement age if the employee became an <br/>
<a id="pl.186.8"></a><var>186.8</var>employee before July 1, 2006, and at 2.5 percent compounded annually if the employee <br/>
<a id="pl.186.9"></a><var>186.9</var>became an employee after June 30, 2006.<br/>
<a id="pl.186.10"></a><var>186.10</var>(g) After June 30, 2015, and before July 1, 2020, for a person who would have <br/>
<a id="pl.186.11"></a><var>186.11</var>a reduced retirement annuity under either paragraph (e) or (f) if they were applicable, <br/>
<a id="pl.186.12"></a><var>186.12</var>the employee is entitled to receive a reduced annuity which must be calculated using <br/>
<a id="pl.186.13"></a><var>186.13</var>a blended reduction factor augmented monthly by 1/60 of the difference between the <br/>
<a id="pl.186.14"></a><var>186.14</var>reduction required under paragraph (e) and the reduction required under paragraph (f).<br/>
<a id="pl.186.15"></a><var>186.15</var>    (f) (h) No retirement annuity is payable to a former employee with a salary that <br/>
<a id="pl.186.16"></a><var>186.16</var>exceeds 95 percent of the governor's salary unless and until the salary figures used in <br/>
<a id="pl.186.17"></a><var>186.17</var>computing the highest five successive years average salary under paragraph (a) have been <br/>
<a id="pl.186.18"></a><var>186.18</var>audited by the Teachers Retirement Association and determined by the executive director <br/>
<a id="pl.186.19"></a><var>186.19</var>to comply with the requirements and limitations of section 
         <statute_ref>354.05</statute_ref>, subdivisions 35 and 35a.<br/>
<a id="pl.186.20"></a><var>186.20</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2013.<br/>
<br/>
<a id="bill.13.0.0"></a>

<a id="pl.186.23"></a><var>186.23</var><b>FINANCIAL SOLVENCY MEASURES</b><br/>

<a id="bill.13.1.0"></a><a id="pl.186.24"></a><var>186.24</var>    Section 1. <b>[354.436] DIRECT STATE AID ON BEHALF OF THE FORMER </b><br/>
<a id="pl.186.25"></a><var>186.25</var><b>MINNEAPOLIS TEACHERS RETIREMENT FUND ASSOCIATION.</b><br/>
<a id="pl.186.26"></a><var>186.26</var>    Subdivision 1. <b>Aid authorization.</b> The state shall pay $12,954,000 to the Teachers <br/>
<a id="pl.186.27"></a><var>186.27</var>Retirement Association on behalf of the former Minneapolis Teachers Retirement Fund <br/>
<a id="pl.186.28"></a><var>186.28</var>Association. <br/>
<a id="pl.186.29"></a><var>186.29</var>    Subd. 2. <b>Aid appropriation.</b> The commissioner of management and budget shall <br/>
<a id="pl.186.30"></a><var>186.30</var>pay the aid annually on October 1. The amount required is appropriated annually from the <br/>
<a id="pl.186.31"></a><var>186.31</var>general fund to the commissioner of management and budget.<br/>
<a id="pl.186.32"></a><var>186.32</var>    Subd. 3. <b>Aid expiration.</b> The aid specified in this section terminates and this <br/>
<a id="pl.186.33"></a><var>186.33</var>section expires when the current assets of the Teachers Retirement Association fund equal <br/>
<a id="pl.186.34"></a><var>186.34</var>or exceed the actuarial accrued liabilities of the fund as determined in the most recent <br/>
<a id="pl.187.1"></a><var>187.1</var>actuarial valuation report for the Teachers Retirement Association fund by the actuary <br/>
<a id="pl.187.2"></a><var>187.2</var>retained under section 356.214, or on the established date for full funding under section <br/>
<a id="pl.187.3"></a><var>187.3</var>356.215, subdivision 11, whichever occurs earlier.<br/>
<a id="pl.187.4"></a><var>187.4</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.13.2.0"></a><a id="pl.187.5"></a><var>187.5</var>    Sec. 2. Minnesota Statutes 2012, section 354A.011, subdivision 21, is amended to read:<br/>
<a id="pl.187.6"></a><var>187.6</var>    Subd. 21. <b>Retirement.</b> (a) "Retirement" means the time after the date of cessation <br/>
<a id="pl.187.7"></a><var>187.7</var>of active teaching service by a teacher who is thereafter then entitled to an accrued <br/>
<a id="pl.187.8"></a><var>187.8</var>retirement annuity commencing beginning as designated by the board of trustees and <br/>
<a id="pl.187.9"></a><var>187.9</var>payable pursuant to an upon filing a valid application for an annuity filed with the board. <br/>
<a id="pl.187.10"></a><var>187.10</var>The applicable provisions of law, articles of incorporation and bylaws in effect on the date <br/>
<a id="pl.187.11"></a><var>187.11</var>of cessation of active teaching service thereafter determine the rights of the person.<br/>
<a id="pl.187.12"></a><var>187.12</var>(b) For members of the St. Paul Teachers Retirement Fund Association, a right to <br/>
<a id="pl.187.13"></a><var>187.13</var>a retirement annuity requires a complete and continuous separation for 90 days from <br/>
<a id="pl.187.14"></a><var>187.14</var>employment in any form with Independent School District No. 625, including service <br/>
<a id="pl.187.15"></a><var>187.15</var>provided to the school district as an independent contractor or as an employee of an <br/>
<a id="pl.187.16"></a><var>187.16</var>independent contractor.<br/>
<a id="pl.187.17"></a><var>187.17</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.13.3.0"></a><a id="pl.187.18"></a><var>187.18</var>    Sec. 3. Minnesota Statutes 2012, section 354A.12, subdivision 1, is amended to read:<br/>
<a id="pl.187.19"></a><var>187.19</var>    Subdivision 1. <b>Employee contributions.</b> (a) The contribution required to be paid <br/>
<a id="pl.187.20"></a><var>187.20</var>by each member of a teachers retirement fund association is the percentage of total salary <br/>
<a id="pl.187.21"></a><var>187.21</var>specified below for the applicable association and program:<br/>
<table>
<col width="50px"/>
<col width="7.5"/>
<col width="36"/>
<col width="21.5"/>
<tr>
<td><a id="pl.187.22"></a><var>187.22</var><br/>
</td>
<td></td>
<td>Association and Program<br/>
</td>
<td>Percentage of Total Salary<br/>
</td>
</tr>
<tr>
<td><a id="pl.187.23"></a><var>187.23</var><br/>
</td>
<td colspan="2">Duluth Teachers Retirement Fund Association<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.187.24"></a><var>187.24</var><br/>
</td>
<td></td>
<td>old law and new law<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.187.25"></a><var>187.25</var><br/>
</td>
<td></td>
<td>coordinated programs<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.187.26"></a><var>187.26</var><br/>
</td>
<td></td>
<td>before July 1, 2011 2013<br/>
</td>
<td>5.5 6.5 percent<br/>
</td>
</tr>
<tr>
<td><a id="pl.187.27"></a><var>187.27</var><br/>
</td>
<td></td>
<td>effective July 1, 2011 2013<br/>
</td>
<td>6.0 7.0 percent<br/>
</td>
</tr>
<tr>
<td><a id="pl.187.28"></a><var>187.28</var><br/>
</td>
<td></td>
<td>effective July 1, 2012 2014<br/>
</td>
<td>6.5 7.5 percent<br/>
</td>
</tr>
<tr>
<td><a id="pl.187.29"></a><var>187.29</var><br/>
</td>
<td colspan="2">St. Paul Teachers Retirement Fund Association<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.187.30"></a><var>187.30</var><br/>
</td>
<td></td>
<td>basic program before July 1, 2011<br/>
</td>
<td>8 percent<br/>
</td>
</tr>
<tr>
<td><a id="pl.187.31"></a><var>187.31</var><br/>
</td>
<td></td>
<td>basic program after June 30, 2011<br/>
</td>
<td>8.25 percent<br/>
</td>
</tr>
<tr>
<td><a id="pl.187.32"></a><var>187.32</var><br/>
</td>
<td></td>
<td>basic program after June 30, 2012<br/>
</td>
<td>8.5 percent<br/>
</td>
</tr>
<tr>
<td><a id="pl.187.33"></a><var>187.33</var><br/>
</td>
<td></td>
<td>basic program after June 30, 2013<br/>
</td>
<td>8.75 percent<br/>
</td>
</tr>
<tr>
<td><a id="pl.187.34"></a><var>187.34</var><br/>
</td>
<td></td>
<td>basic program after June 30, 2014<br/>
</td>
<td>9.0 percent<br/>
</td>
</tr>
<tr>
<td><a id="pl.187.35"></a><var>187.35</var><br/>
</td>
<td></td>
<td>basic program after June 30, 2015<br/>
</td>
<td>9.5 percent<br/>
</td>
</tr>
<tr>
<td><a id="pl.188.1"></a><var>188.1</var><br/>
</td>
<td></td>
<td>basic program after June 30, 2016<br/>
</td>
<td>10.0 percent<br/>
</td>
</tr>
<tr>
<td><a id="pl.188.2"></a><var>188.2</var><br/>
</td>
<td></td>
<td>coordinated program before July 1, 2011<br/>
</td>
<td>5.5 percent<br/>
</td>
</tr>
<tr>
<td><a id="pl.188.3"></a><var>188.3</var><br/>
</td>
<td></td>
<td>coordinated program after June 30, 2011<br/>
</td>
<td>5.75 percent<br/>
</td>
</tr>
<tr>
<td><a id="pl.188.4"></a><var>188.4</var><br/>
</td>
<td></td>
<td>coordinated program after June 30, 2012<br/>
</td>
<td>6.0 percent<br/>
</td>
</tr>
<tr>
<td><a id="pl.188.5"></a><var>188.5</var><br/>
</td>
<td></td>
<td>coordinated program after June 30, 2013<br/>
</td>
<td>6.25 percent<br/>
</td>
</tr>
<tr>
<td><a id="pl.188.6"></a><var>188.6</var><br/>
</td>
<td></td>
<td>coordinated program after June 30, 2014<br/>
</td>
<td>6.50 percent<br/>
</td>
</tr>
<tr>
<td><a id="pl.188.7"></a><var>188.7</var><br/>
</td>
<td></td>
<td>coordinated program after June 30, 2015<br/>
</td>
<td>7.0 percent<br/>
</td>
</tr>
<tr>
<td><a id="pl.188.8"></a><var>188.8</var><br/>
</td>
<td></td>
<td>coordinated program after June 30, 2016<br/>
</td>
<td>7.50 percent<br/>
</td>
</tr>
</table><a id="pl.188.9"></a><var>188.9</var>(b) Contributions shall be made by deduction from salary and must be remitted <br/>
<a id="pl.188.10"></a><var>188.10</var>directly to the respective teachers retirement fund association at least once each month.<br/>
<a id="pl.188.11"></a><var>188.11</var>(c) When an employee contribution rate changes for a fiscal year, the new <br/>
<a id="pl.188.12"></a><var>188.12</var>contribution rate is effective for the entire salary paid by the employer with the first <br/>
<a id="pl.188.13"></a><var>188.13</var>payroll cycle reported.<br/>
<a id="pl.188.14"></a><var>188.14</var><b>EFFECTIVE DATE.</b>This section is effective with respect to the Duluth Teachers <br/>
<a id="pl.188.15"></a><var>188.15</var>Retirement Fund Association on July 1, 2013, and is effective with respect to the St. Paul <br/>
<a id="pl.188.16"></a><var>188.16</var>Teachers Retirement Fund Association on the day following final enactment.<br/>
<br/>
<a id="bill.13.4.0"></a><a id="pl.188.17"></a><var>188.17</var>    Sec. 4. Minnesota Statutes 2012, section 354A.12, subdivision 2a, is amended to read:<br/>
<a id="pl.188.18"></a><var>188.18</var>    Subd. 2a. <b>Employer regular and additional contributions.</b> (a) The employing <br/>
<a id="pl.188.19"></a><var>188.19</var>units shall make the following employer contributions to teachers retirement fund <br/>
<a id="pl.188.20"></a><var>188.20</var>associations:<br/>
<a id="pl.188.21"></a><var>188.21</var>(1) for any coordinated member of one of the following teachers retirement fund <br/>
<a id="pl.188.22"></a><var>188.22</var>associations in a city of the first class, the employing unit shall make a regular employer <br/>
<a id="pl.188.23"></a><var>188.23</var>contribution to the respective retirement fund association in an amount equal to the <br/>
<a id="pl.188.24"></a><var>188.24</var>designated percentage of the salary of the coordinated member as provided below:<br/>
<table>
<col width="50px"/>
<col width="7.5"/>
<col width="36"/>
<col width="21.5"/>
<tr>
<td><a id="pl.188.25"></a><var>188.25</var><br/>
</td>
<td colspan="2">Duluth Teachers Retirement Fund Association<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.188.26"></a><var>188.26</var><br/>
</td>
<td></td>
<td>before July 1, 2011 2013<br/>
</td>
<td>5.79  6.79 percent<br/>
</td>
</tr>
<tr>
<td><a id="pl.188.27"></a><var>188.27</var><br/>
</td>
<td></td>
<td>effective July 1, 2011 2013<br/>
</td>
<td>6.29 7.29 percent<br/>
</td>
</tr>
<tr>
<td><a id="pl.188.28"></a><var>188.28</var><br/>
</td>
<td></td>
<td>effective July 1, 2012 2014<br/>
</td>
<td>6.79 7.50 percent<br/>
</td>
</tr>
<tr>
<td><a id="pl.188.29"></a><var>188.29</var><br/>
</td>
<td colspan="2">St. Paul Teachers Retirement Fund Association<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.188.30"></a><var>188.30</var><br/>
</td>
<td></td>
<td>before July 1, 2011<br/>
</td>
<td>4.50 percent<br/>
</td>
</tr>
<tr>
<td><a id="pl.188.31"></a><var>188.31</var><br/>
</td>
<td></td>
<td>after June 30, 2011<br/>
</td>
<td>4.75 percent<br/>
</td>
</tr>
<tr>
<td><a id="pl.188.32"></a><var>188.32</var><br/>
</td>
<td></td>
<td>after June 30, 2012<br/>
</td>
<td>5.0 percent<br/>
</td>
</tr>
<tr>
<td><a id="pl.188.33"></a><var>188.33</var><br/>
</td>
<td></td>
<td>after June 30, 2013<br/>
</td>
<td>5.25 percent<br/>
</td>
</tr>
<tr>
<td><a id="pl.188.34"></a><var>188.34</var><br/>
</td>
<td></td>
<td>after June 30, 2014<br/>
</td>
<td>5.5 percent<br/>
</td>
</tr>
<tr>
<td><a id="pl.188.35"></a><var>188.35</var><br/>
</td>
<td></td>
<td>after June 30, 2015<br/>
</td>
<td>6.0 percent<br/>
</td>
</tr>
<tr>
<td><a id="pl.188.36"></a><var>188.36</var><br/>
</td>
<td></td>
<td>after June 30, 2016<br/>
</td>
<td>6.25 percent<br/>
</td>
</tr>
<tr>
<td><a id="pl.188.37"></a><var>188.37</var><br/>
</td>
<td></td>
<td>after June 30, 2017<br/>
</td>
<td>6.5 percent<br/>
</td>
</tr>
</table><a id="pl.189.1"></a><var>189.1</var>(2) for any basic member of the St. Paul Teachers Retirement Fund Association, the <br/>
<a id="pl.189.2"></a><var>189.2</var>employing unit shall make a regular employer contribution to the respective retirement <br/>
<a id="pl.189.3"></a><var>189.3</var>fund in an amount according to the schedule below:<br/>
<table>
<col width="50px"/>
<col width="7.5"/>
<col width="27.5"/>
<col width="31"/>
<tr>
<td><a id="pl.189.4"></a><var>189.4</var><br/>
</td>
<td></td>
<td>before July 1, 2011<br/>
</td>
<td>8.0 percent of salary<br/>
</td>
</tr>
<tr>
<td><a id="pl.189.5"></a><var>189.5</var><br/>
</td>
<td></td>
<td>after June 30, 2011<br/>
</td>
<td>8.25 percent of salary<br/>
</td>
</tr>
<tr>
<td><a id="pl.189.6"></a><var>189.6</var><br/>
</td>
<td></td>
<td>after June 30, 2012<br/>
</td>
<td>8.5 percent of salary<br/>
</td>
</tr>
<tr>
<td><a id="pl.189.7"></a><var>189.7</var><br/>
</td>
<td></td>
<td>after June 30, 2013<br/>
</td>
<td>8.75 percent of salary<br/>
</td>
</tr>
<tr>
<td><a id="pl.189.8"></a><var>189.8</var><br/>
</td>
<td></td>
<td>after June 30, 2014<br/>
</td>
<td>9.0 percent of salary<br/>
</td>
</tr>
<tr>
<td><a id="pl.189.9"></a><var>189.9</var><br/>
</td>
<td></td>
<td>after June 30, 2015<br/>
</td>
<td>9.5 percent of salary<br/>
</td>
</tr>
<tr>
<td><a id="pl.189.10"></a><var>189.10</var><br/>
</td>
<td></td>
<td>after June 30, 2016<br/>
</td>
<td>9.75 percent of salary<br/>
</td>
</tr>
<tr>
<td><a id="pl.189.11"></a><var>189.11</var><br/>
</td>
<td></td>
<td>after June 30, 2017<br/>
</td>
<td>10.0 percent of salary<br/>
</td>
</tr>
</table><a id="pl.189.12"></a><var>189.12</var>(3) for a basic member of the St. Paul Teachers Retirement Fund Association, the <br/>
<a id="pl.189.13"></a><var>189.13</var>employing unit shall make an additional employer contribution to the respective fund in <br/>
<a id="pl.189.14"></a><var>189.14</var>an amount equal to 3.64 percent of the salary of the basic member;<br/>
<a id="pl.189.15"></a><var>189.15</var>(4) for a coordinated member of the St. Paul Teachers Retirement Fund Association, <br/>
<a id="pl.189.16"></a><var>189.16</var>the employing unit shall make an additional employer contribution to the respective fund <br/>
<a id="pl.189.17"></a><var>189.17</var>in an amount equal to the applicable percentage of the coordinated member's salary, <br/>
<a id="pl.189.18"></a><var>189.18</var>as provided below:<br/>
<table>
<col width="50px"/>
<col width="42.5"/>
<col width="21.5"/>
<tr>
<td><a id="pl.189.19"></a><var>189.19</var><br/>
</td>
<td>St. Paul Teachers Retirement Fund Association<br/>
</td>
<td>3.84 percent<br/>
</td>
</tr>
</table><a id="pl.189.20"></a><var>189.20</var>(b) The regular and additional employer contributions must be remitted directly to <br/>
<a id="pl.189.21"></a><var>189.21</var>the respective teachers retirement fund association at least once each month. Delinquent <br/>
<a id="pl.189.22"></a><var>189.22</var>amounts are payable with interest under the procedure in subdivision 1a.<br/>
<a id="pl.189.23"></a><var>189.23</var>(c) Payments of regular and additional employer contributions for school district <br/>
<a id="pl.189.24"></a><var>189.24</var>or technical college employees who are paid from normal operating funds must be made <br/>
<a id="pl.189.25"></a><var>189.25</var>from the appropriate fund of the district or technical college.<br/>
<a id="pl.189.26"></a><var>189.26</var>(d) When an employer contribution rate changes for a fiscal year, the new <br/>
<a id="pl.189.27"></a><var>189.27</var>contribution rate is effective for the entire salary paid by the employer with the first <br/>
<a id="pl.189.28"></a><var>189.28</var>payroll cycle reported.<br/>
<a id="pl.189.29"></a><var>189.29</var><b>EFFECTIVE DATE.</b>This section is effective with respect to the Duluth Teachers <br/>
<a id="pl.189.30"></a><var>189.30</var>Retirement Fund Association on July 1, 2013, and is effective with respect to the St. Paul <br/>
<a id="pl.189.31"></a><var>189.31</var>Teachers Retirement Fund Association on the day following final enactment.<br/>
<br/>
<a id="bill.13.5.0"></a><a id="pl.189.32"></a><var>189.32</var>    Sec. 5. Minnesota Statutes 2012, section 354A.12, is amended by adding a subdivision <br/>
<a id="pl.189.33"></a><var>189.33</var>to read:<br/>
<a id="pl.189.34"></a><var>189.34</var>    Subd. 2c. <b>Duluth Teachers Retirement Fund Association; employer </b><br/>
<a id="pl.189.35"></a><var>189.35</var><b>contributions for reemployed annuitants.</b> The school district shall make the regular <br/>
<a id="pl.190.1"></a><var>190.1</var>employer contributions and additional employer contributions specified in subdivision 2a <br/>
<a id="pl.190.2"></a><var>190.2</var>on behalf of any retired member of the Duluth Teachers Retirement Fund Association who <br/>
<a id="pl.190.3"></a><var>190.3</var>is reemployed by Independent School District No. 709, including providing service to the <br/>
<a id="pl.190.4"></a><var>190.4</var>school district as an independent contractor or as an employee of an independent contractor.<br/>
<a id="pl.190.5"></a><var>190.5</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2013.<br/>
<br/>
<a id="bill.13.6.0"></a><a id="pl.190.6"></a><var>190.6</var>    Sec. 6. Minnesota Statutes 2012, section 354A.12, is amended by adding a subdivision <br/>
<a id="pl.190.7"></a><var>190.7</var>to read:<br/>
<a id="pl.190.8"></a><var>190.8</var>    Subd. 2d. <b>St. Paul Teachers Retirement Fund Association; employer </b><br/>
<a id="pl.190.9"></a><var>190.9</var><b>contributions for reemployed annuitants.</b> Independent School District No. 625 shall <br/>
<a id="pl.190.10"></a><var>190.10</var>make the regular employer contribution and additional employer contribution specified in <br/>
<a id="pl.190.11"></a><var>190.11</var>subdivision 2a, plus a supplemental contribution equal to 2.5 percent of salary, on behalf <br/>
<a id="pl.190.12"></a><var>190.12</var>of any retired member of the St. Paul Teachers Retirement Fund Association who is <br/>
<a id="pl.190.13"></a><var>190.13</var>reemployed by Independent School District No. 625, including providing service to the <br/>
<a id="pl.190.14"></a><var>190.14</var>school district as an independent contractor or as an employee of an independent contractor.<br/>
<a id="pl.190.15"></a><var>190.15</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.13.7.0"></a><a id="pl.190.16"></a><var>190.16</var>    Sec. 7. Minnesota Statutes 2012, section 354A.12, subdivision 3a, is amended to read:<br/>
<a id="pl.190.17"></a><var>190.17</var>    Subd. 3a. <b>Special direct state aid to first class city teachers retirement fund </b><br/>
<a id="pl.190.18"></a><var>190.18</var><b>associations.</b> (a) The state shall pay $346,000 $6,346,000 as special direct state aid to <br/>
<a id="pl.190.19"></a><var>190.19</var>the Duluth Teachers Retirement Fund Association, and $2,827,000 $9,827,000 to the St. <br/>
<a id="pl.190.20"></a><var>190.20</var>Paul Teachers Retirement Fund Association and, for the former Minneapolis Teachers <br/>
<a id="pl.190.21"></a><var>190.21</var>Retirement Fund Association, $12,954,000 to the Teachers Retirement Association.<br/>
<a id="pl.190.22"></a><var>190.22</var>    (b) The direct state aids under this subdivision are payable October 1 annually. The <br/>
<a id="pl.190.23"></a><var>190.23</var>commissioner of management and budget shall pay the direct state aid aids specified in <br/>
<a id="pl.190.24"></a><var>190.24</var>this subdivision. The amount amounts required under this subdivision is are appropriated <br/>
<a id="pl.190.25"></a><var>190.25</var>annually from the general fund to the commissioner of management and budget.<br/>
<a id="pl.190.26"></a><var>190.26</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment. <br/>
<br/>
<a id="bill.13.8.0"></a><a id="pl.190.27"></a><var>190.27</var>    Sec. 8. Minnesota Statutes 2012, section 354A.12, subdivision 3c, is amended to read:<br/>
<a id="pl.190.28"></a><var>190.28</var>    Subd. 3c. <b>Termination of supplemental contributions and direct matching </b><br/>
<a id="pl.190.29"></a><var>190.29</var><b>and state aid.</b> (a) The supplemental contributions payable to the St. Paul Teachers <br/>
<a id="pl.190.30"></a><var>190.30</var>Retirement Fund Association by Independent School District No. 625 under section <br/>
<statute_ref><a id="pl.190.31"></a><var>190.31</var>423A.02, subdivision 3
         </statute_ref>, or the direct and all forms of state aid under subdivision 3a to the <br/>
<a id="pl.190.32"></a><var>190.32</var>St. Paul Teachers Retirement Fund Association must continue until the current assets of <br/>
<a id="pl.191.1"></a><var>191.1</var>the fund equal or exceed the actuarial accrued liability of the fund as determined in the <br/>
<a id="pl.191.2"></a><var>191.2</var>most recent actuarial report for the fund by the actuary retained under section 
         <statute_ref>356.214</statute_ref> or <br/>
<a id="pl.191.3"></a><var>191.3</var>until June 30, 2037, whichever occurs earlier.<br/>
<a id="pl.191.4"></a><var>191.4</var>(b) The aid to the Duluth Teachers Retirement Fund Association under section <br/>
<a id="pl.191.5"></a><var>191.5</var>423A.02, subdivision 3, and all forms of state aid under subdivision 3a to the Duluth <br/>
<a id="pl.191.6"></a><var>191.6</var>Teachers Retirement Fund Association must continue until the current assets of the fund <br/>
<a id="pl.191.7"></a><var>191.7</var>equal or exceed the actuarial accrued liability of the fund as determined in the most <br/>
<a id="pl.191.8"></a><var>191.8</var>recent actuarial report for the fund by the actuary retained under section 
<statute_ref>356.214</statute_ref> or until <br/>
<a id="pl.191.9"></a><var>191.9</var>the established date for full funding under section 356.215, subdivision 11, whichever <br/>
<a id="pl.191.10"></a><var>191.10</var>occurs earlier.<br/>
<a id="pl.191.11"></a><var>191.11</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.13.9.0"></a><a id="pl.191.12"></a><var>191.12</var>    Sec. 9. Minnesota Statutes 2012, section 354A.12, subdivision 7, is amended to read:<br/>
<a id="pl.191.13"></a><var>191.13</var>    Subd. 7. <b>Recovery of benefit overpayments.</b> (a) If the executive director discovers, <br/>
<a id="pl.191.14"></a><var>191.14</var>within the time period specified in subdivision 8 following the payment of a refund or <br/>
<a id="pl.191.15"></a><var>191.15</var>the accrual date of any retirement annuity, survivor benefit, or disability benefit, that <br/>
<a id="pl.191.16"></a><var>191.16</var>benefit overpayment has occurred due to using invalid service or salary, or due to any <br/>
<a id="pl.191.17"></a><var>191.17</var>erroneous calculation procedure, the executive director must recalculate the annuity or <br/>
<a id="pl.191.18"></a><var>191.18</var>benefit payable and recover any overpayment. The executive director shall recover the <br/>
<a id="pl.191.19"></a><var>191.19</var>overpayment by requiring direct repayment or by suspending or reducing the payment of a <br/>
<a id="pl.191.20"></a><var>191.20</var>retirement annuity or other benefit payable under this chapter to the applicable person or <br/>
<a id="pl.191.21"></a><var>191.21</var>the person's estate, whichever applies, until all outstanding amounts have been recovered.<br/>
<a id="pl.191.22"></a><var>191.22</var> If a benefit overpayment or improper payment of benefits occurred caused by a failure <br/>
<a id="pl.191.23"></a><var>191.23</var>of the person to satisfy length of separation requirements for retirement under section <br/>
<a id="pl.191.24"></a><var>191.24</var>354A.011, subdivision 21, the executive director shall recover the improper payments by <br/>
<a id="pl.191.25"></a><var>191.25</var>requiring direct repayment. The repayment must include interest at the rate of 0.71 percent <br/>
<a id="pl.191.26"></a><var>191.26</var>per month from the first of the month in which a monthly benefit amount was paid to the <br/>
<a id="pl.191.27"></a><var>191.27</var>first of the month in which the amount is repaid, with annual compounding.<br/>
<a id="pl.191.28"></a><var>191.28</var>(b) In the event the executive director determines that an overpaid annuity or benefit <br/>
<a id="pl.191.29"></a><var>191.29</var>that is the result of invalid salary included in the average salary used to calculate the <br/>
<a id="pl.191.30"></a><var>191.30</var>payment amount must be recovered, the executive director must determine the amount of <br/>
<a id="pl.191.31"></a><var>191.31</var>the employee deductions taken in error on the invalid salary, with interest as determined <br/>
<a id="pl.191.32"></a><var>191.32</var>under 
         <statute_ref>354A.37, subdivision 3</statute_ref>, and must subtract that amount from the total annuity or <br/>
<a id="pl.191.33"></a><var>191.33</var>benefit overpayment, and the remaining balance of the overpaid annuity or benefit, if <br/>
<a id="pl.191.34"></a><var>191.34</var>any, must be recovered.<br/>
<a id="pl.192.1"></a><var>192.1</var>(c) If the invalid employee deductions plus interest exceed the amount of the <br/>
<a id="pl.192.2"></a><var>192.2</var>overpaid benefits, the balance must be refunded to the person to whom the benefit or <br/>
<a id="pl.192.3"></a><var>192.3</var>annuity is being paid.<br/>
<a id="pl.192.4"></a><var>192.4</var>(d) Any invalid employer contributions reported on the invalid salary must be <br/>
<a id="pl.192.5"></a><var>192.5</var>credited against future contributions payable by the employer.<br/>
<a id="pl.192.6"></a><var>192.6</var>(e) If a member or former member, who is receiving a retirement annuity or <br/>
<a id="pl.192.7"></a><var>192.7</var>disability benefit for which an overpayment is being recovered, dies before recovery of the <br/>
<a id="pl.192.8"></a><var>192.8</var>overpayment is completed and an optional annuity or refund is payable, the remaining <br/>
<a id="pl.192.9"></a><var>192.9</var>balance of the overpaid annuity or benefit must continue to be recovered from the payment <br/>
<a id="pl.192.10"></a><var>192.10</var>to the optional annuity beneficiary or refund recipient.<br/>
<a id="pl.192.11"></a><var>192.11</var>(f) The board of trustees shall adopt policies directing the period of time and manner <br/>
<a id="pl.192.12"></a><var>192.12</var>for the collection of any overpaid retirement or optional annuity, and survivor or disability <br/>
<a id="pl.192.13"></a><var>192.13</var>benefit, or a refund that the executive director determines must be recovered as provided <br/>
<a id="pl.192.14"></a><var>192.14</var>under this section.<br/>
<a id="pl.192.15"></a><var>192.15</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.13.10.0"></a><a id="pl.192.16"></a><var>192.16</var>    Sec. 10. Minnesota Statutes 2012, section 354A.27, is amended by adding a <br/>
<a id="pl.192.17"></a><var>192.17</var>subdivision to read:<br/>
<a id="pl.192.18"></a><var>192.18</var>    Subd. 6a. <b>Postretirement adjustment transition.</b> (a) If the funded ratio of the <br/>
<a id="pl.192.19"></a><var>192.19</var>retirement plan based on the actuarial value of assets is at least 90 percent as reported <br/>
<a id="pl.192.20"></a><var>192.20</var>in the most recent actuarial valuation prepared under sections 356.214 and 356.215, <br/>
<a id="pl.192.21"></a><var>192.21</var>this subdivision expires and subsequent postretirement adjustments are governed by <br/>
<a id="pl.192.22"></a><var>192.22</var>subdivision 7.<br/>
<a id="pl.192.23"></a><var>192.23</var>(b) Each annuity or benefit recipient of the retirement plan who has been receiving <br/>
<a id="pl.192.24"></a><var>192.24</var>that annuity or benefit for at least 12 months as of the applicable January 1 is eligible to <br/>
<a id="pl.192.25"></a><var>192.25</var>receive a postretirement adjustment of one percent, payable on January 1.<br/>
<a id="pl.192.26"></a><var>192.26</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2013, and applies to the <br/>
<a id="pl.192.27"></a><var>192.27</var>January 1, 2014, postretirement increase.<br/>
<br/>
<a id="bill.13.11.0"></a><a id="pl.192.28"></a><var>192.28</var>    Sec. 11. Minnesota Statutes 2012, section 354A.27, subdivision 7, is amended to read:<br/>
<a id="pl.192.29"></a><var>192.29</var>    Subd. 7. <b>Calculation of postretirement adjustments.</b> (a) This subdivision applies <br/>
<a id="pl.192.30"></a><var>192.30</var>if subdivision 6 6a has expired.<br/>
<a id="pl.192.31"></a><var>192.31</var>(b) A percentage adjustment must be computed and paid under this subdivision to <br/>
<a id="pl.192.32"></a><var>192.32</var>eligible persons under subdivision 5. This adjustment is determined by reference to the <br/>
<a id="pl.192.33"></a><var>192.33</var>Consumer Price Index for urban wage earners and clerical workers all items index as <br/>
<a id="pl.193.1"></a><var>193.1</var>reported by the Bureau of Labor Statistics within the United States Department of Labor <br/>
<a id="pl.193.2"></a><var>193.2</var>each year as part of the determination of annual cost-of-living adjustments to recipients <br/>
<a id="pl.193.3"></a><var>193.3</var>of federal old-age, survivors, and disability insurance. For calculations of cost-of-living <br/>
<a id="pl.193.4"></a><var>193.4</var>adjustments under paragraph (c), the term "average third quarter Consumer Price Index <br/>
<a id="pl.193.5"></a><var>193.5</var>value" means the sum of the monthly index values as initially reported by the Bureau of <br/>
<a id="pl.193.6"></a><var>193.6</var>Labor Statistics for the months of July, August, and September, divided by 3.<br/>
<a id="pl.193.7"></a><var>193.7</var>(c) Before January 1 of each year, the executive director must calculate the amount <br/>
<a id="pl.193.8"></a><var>193.8</var>of the cost-of-living adjustment by dividing the most recent average third quarter index <br/>
<a id="pl.193.9"></a><var>193.9</var>value by the same average third quarter index value from the previous year, subtract one <br/>
<a id="pl.193.10"></a><var>193.10</var>from the resulting quotient, and express the result as a percentage amount, which must be <br/>
<a id="pl.193.11"></a><var>193.11</var>rounded to the nearest one-tenth of one percent.<br/>
<a id="pl.193.12"></a><var>193.12</var>(d) The amount calculated under paragraph (c) is the full cost-of-living adjustment <br/>
<a id="pl.193.13"></a><var>193.13</var>to be applied as a permanent increase to the regular payment of each eligible member <br/>
<a id="pl.193.14"></a><var>193.14</var>on January 1 of the next calendar year. For any eligible member whose effective date <br/>
<a id="pl.193.15"></a><var>193.15</var>of benefit commencement occurred during the calendar year before the cost-of-living <br/>
<a id="pl.193.16"></a><var>193.16</var>adjustment is applied, the full increase amount must be prorated on the basis of whole <br/>
<a id="pl.193.17"></a><var>193.17</var>calendar quarters in benefit payment status in the calendar year prior to the January 1 on <br/>
<a id="pl.193.18"></a><var>193.18</var>which the cost-of-living adjustment is applied, calculated to the third decimal place.<br/>
<a id="pl.193.19"></a><var>193.19</var>(e) The adjustment must not be less than zero nor greater than five percent.<br/>
<a id="pl.193.20"></a><var>193.20</var>(f) If the funding ratio of the plan as determined in the most recent actuarial <br/>
<a id="pl.193.21"></a><var>193.21</var>valuation using the actuarial value of assets is less than 80 percent there will be no <br/>
<a id="pl.193.22"></a><var>193.22</var>postretirement adjustment the following January 1.<br/>
<a id="pl.193.23"></a><var>193.23</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2013.<br/>
<br/>
<a id="bill.13.12.0"></a><a id="pl.193.24"></a><var>193.24</var>    Sec. 12. Minnesota Statutes 2012, section 354A.31, subdivision 3, is amended to read:<br/>
<a id="pl.193.25"></a><var>193.25</var>    Subd. 3. <b>Resumption of teaching after commencement of a retirement annuity.</b><br/>
<a id="pl.193.26"></a><var>193.26</var>    (a) Any person who retired and is receiving a coordinated program retirement annuity <br/>
<a id="pl.193.27"></a><var>193.27</var>under the provisions of sections 
         <statute_ref>354A.31</statute_ref> to 
         <statute_ref>354A.41</statute_ref> or any person receiving a basic <br/>
<a id="pl.193.28"></a><var>193.28</var>program retirement annuity under the governing sections in the articles of incorporation <br/>
<a id="pl.193.29"></a><var>193.29</var>or bylaws and who has resumed teaching service for the school district in which the <br/>
<a id="pl.193.30"></a><var>193.30</var>teachers retirement fund association exists is entitled to continue to receive retirement <br/>
<a id="pl.193.31"></a><var>193.31</var>annuity payments, except that all or a portion of the annuity payments must be deferred <br/>
<a id="pl.193.32"></a><var>193.32</var>during the calendar year immediately following the calendar year in which the person's <br/>
<a id="pl.193.33"></a><var>193.33</var>salary from the teaching service is in an amount greater than $46,000. The amount of the <br/>
<a id="pl.193.34"></a><var>193.34</var>annuity deferral is one-third the salary amount in excess of $46,000 and must be deducted <br/>
<a id="pl.194.1"></a><var>194.1</var>from the annuity payable for the calendar year immediately following the calendar year <br/>
<a id="pl.194.2"></a><var>194.2</var>in which the excess amount was earned.<br/>
<a id="pl.194.3"></a><var>194.3</var>    (b) If the person is retired for only a fractional part of the calendar year during the <br/>
<a id="pl.194.4"></a><var>194.4</var>initial year of retirement, the maximum reemployment salary exempt from triggering a <br/>
<a id="pl.194.5"></a><var>194.5</var>deferral as specified in this subdivision must be prorated for that calendar year.<br/>
<a id="pl.194.6"></a><var>194.6</var>    (c) After a person has reached the Social Security normal retirement age, no deferral <br/>
<a id="pl.194.7"></a><var>194.7</var>requirement is applicable regardless of the amount of any compensation received for <br/>
<a id="pl.194.8"></a><var>194.8</var>teaching service for the school district in which the teachers retirement fund association <br/>
<a id="pl.194.9"></a><var>194.9</var>exists.<br/>
<a id="pl.194.10"></a><var>194.10</var>    (d) The amount of the retirement annuity deferral must be handled or disposed <br/>
<a id="pl.194.11"></a><var>194.11</var>of as provided in section 
         <statute_ref>356.47</statute_ref>.<br/>
<a id="pl.194.12"></a><var>194.12</var>(e) Notwithstanding other paragraphs of this subdivision, for any retired Duluth <br/>
<a id="pl.194.13"></a><var>194.13</var>Teachers Retirement Fund Association member whose effective date of retirement is after <br/>
<a id="pl.194.14"></a><var>194.14</var>June 30, 2013, amounts specified as deferred under this subdivision must instead be <br/>
<a id="pl.194.15"></a><var>194.15</var>forfeited to the Duluth Teachers Retirement Fund Association fund.<br/>
<a id="pl.194.16"></a><var>194.16</var>(f) Notwithstanding other paragraphs of this subdivision, for any retired St. Paul <br/>
<a id="pl.194.17"></a><var>194.17</var>Teachers Retirement Fund Association basic or coordinated program member whose <br/>
<a id="pl.194.18"></a><var>194.18</var>effective date of retirement is after June 30, 2013, amounts specified as deferred under <br/>
<a id="pl.194.19"></a><var>194.19</var>this subdivision must instead be forfeited to the St. Paul Teachers Retirement Fund <br/>
<a id="pl.194.20"></a><var>194.20</var>Association fund.<br/>
<a id="pl.194.21"></a><var>194.21</var>    (e) (g) For the purpose of this subdivision, salary from teaching service includes: (i) <br/>
<a id="pl.194.22"></a><var>194.22</var>all income for services performed as a consultant or independent contractor; or income <br/>
<a id="pl.194.23"></a><var>194.23</var>resulting from working with the school district in any capacity; and (ii) the greater of either <br/>
<a id="pl.194.24"></a><var>194.24</var>the income received or an amount based on the rate paid with respect to an administrative <br/>
<a id="pl.194.25"></a><var>194.25</var>position, consultant, or independent contractor in the school district in which the teachers <br/>
<a id="pl.194.26"></a><var>194.26</var>retirement fund association exists and at the same level as the position occupied by the <br/>
<a id="pl.194.27"></a><var>194.27</var>person who resumes teaching service.<br/>
<a id="pl.194.28"></a><var>194.28</var>    (f) (h) On or before February 15 of each year, each applicable employing unit <br/>
<a id="pl.194.29"></a><var>194.29</var>shall report to the teachers retirement fund association the amount of postretirement <br/>
<a id="pl.194.30"></a><var>194.30</var>salary as defined in this subdivision, earned as a teacher, consultant, or independent <br/>
<a id="pl.194.31"></a><var>194.31</var>contractor during the previous calendar year by each retiree of the teachers retirement <br/>
<a id="pl.194.32"></a><var>194.32</var>fund association for teaching service performed after retirement. The report must be in <br/>
<a id="pl.194.33"></a><var>194.33</var>a format approved by the executive secretary or director.<br/>
<a id="pl.194.34"></a><var>194.34</var><b>EFFECTIVE DATE.</b>This section is effective with respect to the Duluth Teachers <br/>
<a id="pl.194.35"></a><var>194.35</var>Retirement Fund Association on July 1, 2013, and is effective with respect to the St. Paul <br/>
<a id="pl.194.36"></a><var>194.36</var>Teachers Retirement Fund Association the day following final enactment.<br/>
<br/>
<a id="bill.13.13.0"></a><a id="pl.195.1"></a><var>195.1</var>    Sec. 13. Minnesota Statutes 2012, section 354A.31, subdivision 4, is amended to read:<br/>
<a id="pl.195.2"></a><var>195.2</var>    Subd. 4. <b>Computation of normal coordinated retirement annuity; St. Paul </b><br/>
<a id="pl.195.3"></a><var>195.3</var><b>fund.</b> (a) This subdivision applies to the coordinated program of the St. Paul Teachers <br/>
<a id="pl.195.4"></a><var>195.4</var>Retirement Fund Association.<br/>
<a id="pl.195.5"></a><var>195.5</var>(b) The normal coordinated retirement annuity is an amount equal to a retiring <br/>
<a id="pl.195.6"></a><var>195.6</var>coordinated member's average salary under section 
         <statute_ref>354A.011, subdivision 7a</statute_ref>, multiplied <br/>
<a id="pl.195.7"></a><var>195.7</var>by the retirement annuity formula percentage.<br/>
<a id="pl.195.8"></a><var>195.8</var>(c) This paragraph, in conjunction with subdivision 6, applies to a person who first <br/>
<a id="pl.195.9"></a><var>195.9</var>became a member or a member in a pension fund listed in section 
         <statute_ref>356.30, subdivision 3</statute_ref>, <br/>
<a id="pl.195.10"></a><var>195.10</var>before July 1, 1989, unless paragraph (d), in conjunction with subdivision 7, produces <br/>
<a id="pl.195.11"></a><var>195.11</var>a higher annuity amount, in which case paragraph (d) will apply. For service rendered <br/>
<a id="pl.195.12"></a><var>195.12</var>before July 1, 2015, the retirement annuity formula percentage for purposes of this <br/>
<a id="pl.195.13"></a><var>195.13</var>paragraph is the percent specified in section 
         <statute_ref>356.315, subdivision 1</statute_ref>, per year for each year <br/>
<a id="pl.195.14"></a><var>195.14</var>of coordinated service for the first ten years and the percent specified in section 
         <statute_ref>356.315, <br/>
<a id="pl.195.15"></a><var>195.15</var>subdivision 2
         </statute_ref>, for each year of coordinated service thereafter. For service rendered after <br/>
<a id="pl.195.16"></a><var>195.16</var>June 30, 2015, the retirement annuity formula percentage for purposes of this paragraph <br/>
<a id="pl.195.17"></a><var>195.17</var>is the percent specified in section 
<statute_ref>356.315, subdivision 1a</statute_ref>, per year for each year of <br/>
<a id="pl.195.18"></a><var>195.18</var>coordinated service for the first ten years and the percent specified in section 
<statute_ref>356.315, <br/>
<a id="pl.195.19"></a><var>195.19</var>subdivision 2b
</statute_ref>, for each year of coordinated service thereafter.<br/>
<a id="pl.195.20"></a><var>195.20</var>(d) This paragraph applies to a person who has become at least 55 years old and who <br/>
<a id="pl.195.21"></a><var>195.21</var>first becomes a member after June 30, 1989, and to any other member who has become <br/>
<a id="pl.195.22"></a><var>195.22</var>at least 55 years old and whose annuity amount, when calculated under this paragraph <br/>
<a id="pl.195.23"></a><var>195.23</var>and in conjunction with subdivision 7 is higher than it is when calculated under paragraph <br/>
<a id="pl.195.24"></a><var>195.24</var>(c), in conjunction with the provisions of subdivision 6. The retirement annuity formula <br/>
<a id="pl.195.25"></a><var>195.25</var>percentage for purposes of this paragraph is the percent specified in section 
         <statute_ref>356.315, <br/>
<a id="pl.195.26"></a><var>195.26</var>subdivision 2
         </statute_ref>, for each year of coordinated service rendered before July 1, 2015, and <br/>
<a id="pl.195.27"></a><var>195.27</var>the percent specified in section 356.215, subdivision 2b, for each year of coordinated <br/>
<a id="pl.195.28"></a><var>195.28</var>service thereafter.<br/>
<a id="pl.195.29"></a><var>195.29</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2014.<br/>
<br/>
<a id="bill.13.14.0"></a><a id="pl.195.30"></a><var>195.30</var>    Sec. 14. Minnesota Statutes 2012, section 354A.31, subdivision 4a, is amended to read:<br/>
<a id="pl.195.31"></a><var>195.31</var>    Subd. 4a. <b>Computation of normal coordinated retirement annuity; Duluth </b><br/>
<a id="pl.195.32"></a><var>195.32</var><b>fund.</b> (a) This subdivision applies to the new law coordinated program of the Duluth <br/>
<a id="pl.195.33"></a><var>195.33</var>Teachers Retirement Fund Association.<br/>
<a id="pl.196.1"></a><var>196.1</var>(b) The normal coordinated retirement annuity is an amount equal to a retiring <br/>
<a id="pl.196.2"></a><var>196.2</var>coordinated member's average salary under section 
         <statute_ref>354A.011, subdivision 7a</statute_ref>, multiplied <br/>
<a id="pl.196.3"></a><var>196.3</var>by the retirement annuity formula percentage.<br/>
<a id="pl.196.4"></a><var>196.4</var>(c) This paragraph, in conjunction with subdivision 6, applies to a person who first <br/>
<a id="pl.196.5"></a><var>196.5</var>became a member or a member in a pension fund listed in section 
         <statute_ref>356.30, subdivision 3</statute_ref>, <br/>
<a id="pl.196.6"></a><var>196.6</var>before July 1, 1989, unless paragraph (d), in conjunction with subdivision 7, produces a <br/>
<a id="pl.196.7"></a><var>196.7</var>higher annuity amount, in which case paragraph (d) applies. The retirement annuity <br/>
<a id="pl.196.8"></a><var>196.8</var>formula percentage for purposes of this paragraph is the percent specified in section <br/>
<statute_ref><a id="pl.196.9"></a><var>196.9</var>356.315, subdivision 1
         </statute_ref>, per year for each year of coordinated program service for the first <br/>
<a id="pl.196.10"></a><var>196.10</var>ten years rendered through June 30, 2013, and the percent specified in section 356.315, <br/>
<a id="pl.196.11"></a><var>196.11</var>subdivision 1a, per year for each year of coordinated program service rendered after June <br/>
<a id="pl.196.12"></a><var>196.12</var>30, 2013, and the percent specified in section 
         <statute_ref>356.315, subdivision 2</statute_ref>, for each subsequent <br/>
<a id="pl.196.13"></a><var>196.13</var>year of coordinated program service through June 30, 2013, and the percent specified in <br/>
<a id="pl.196.14"></a><var>196.14</var>section 356.315, subdivision 2b, per year for each year of coordinated program service <br/>
<a id="pl.196.15"></a><var>196.15</var>rendered after June 30, 2013.<br/>
<a id="pl.196.16"></a><var>196.16</var>(d) This paragraph applies to a person who is at least 55 years old and who first <br/>
<a id="pl.196.17"></a><var>196.17</var>becomes a member after June 30, 1989, and to any other member who is at least 55 years <br/>
<a id="pl.196.18"></a><var>196.18</var>old and whose annuity amount, when calculated under this paragraph and in conjunction <br/>
<a id="pl.196.19"></a><var>196.19</var>with subdivision 7, is higher than it is when calculated under paragraph (c) in conjunction <br/>
<a id="pl.196.20"></a><var>196.20</var>with subdivision 6. The retirement annuity formula percentage for purposes of this <br/>
<a id="pl.196.21"></a><var>196.21</var>paragraph is the percent specified in section 
         <statute_ref>356.315, subdivision 2</statute_ref>, for each year of <br/>
<a id="pl.196.22"></a><var>196.22</var>coordinated program service through June 30, 2013, and the percent specified in section <br/>
<a id="pl.196.23"></a><var>196.23</var>356.315, subdivision 2b, per year for each year of coordinated program service rendered <br/>
<a id="pl.196.24"></a><var>196.24</var>after June 30, 2013.<br/>
<a id="pl.196.25"></a><var>196.25</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2013.<br/>
<br/>
<a id="bill.13.15.0"></a><a id="pl.196.26"></a><var>196.26</var>    Sec. 15. Minnesota Statutes 2012, section 354A.31, subdivision 7, is amended to read:<br/>
<a id="pl.196.27"></a><var>196.27</var>    Subd. 7. <b>Actuarial</b><b> Reduction for early retirement.</b> (a) This subdivision applies to <br/>
<a id="pl.196.28"></a><var>196.28</var>a person who has become at least 55 years old and first becomes a coordinated member <br/>
<a id="pl.196.29"></a><var>196.29</var>after June 30, 1989, and to any other coordinated member who has become at least 55 <br/>
<a id="pl.196.30"></a><var>196.30</var>years old and whose annuity is higher when calculated using the retirement annuity <br/>
<a id="pl.196.31"></a><var>196.31</var>formula percentage in subdivision 4, paragraph (d), and or subdivision 4a, paragraph (d), <br/>
<a id="pl.196.32"></a><var>196.32</var>as applicable, in conjunction with this subdivision than when calculated under subdivision <br/>
<a id="pl.196.33"></a><var>196.33</var>4, paragraph (c), or subdivision 4a, paragraph (c), in conjunction with subdivision 6.<br/>
<a id="pl.196.34"></a><var>196.34</var>(b) A coordinated member who retires before the full benefit normal retirement <br/>
<a id="pl.196.35"></a><var>196.35</var>age shall be paid the retirement annuity calculated using the retirement annuity formula <br/>
<a id="pl.197.1"></a><var>197.1</var>percentage in subdivision 4, paragraph (d), or subdivision 4a, paragraph (d), reduced so <br/>
<a id="pl.197.2"></a><var>197.2</var>that the reduced annuity is the actuarial equivalent of the annuity that would be payable <br/>
<a id="pl.197.3"></a><var>197.3</var>to the member if the member deferred receipt of the annuity and the annuity amount <br/>
<a id="pl.197.4"></a><var>197.4</var>were augmented at an annual rate of three percent compounded annually from the day <br/>
<a id="pl.197.5"></a><var>197.5</var>the annuity begins to accrue until the normal retirement age if the employee became an <br/>
<a id="pl.197.6"></a><var>197.6</var>employee before July 1, 2006, and at 2.5 percent compounded annually from the day the <br/>
<a id="pl.197.7"></a><var>197.7</var>annuity begins to accrue until the normal retirement age if the person initially becomes a <br/>
<a id="pl.197.8"></a><var>197.8</var>teacher after June 30, 2006. whichever is applicable, multiplied by the applicable early <br/>
<a id="pl.197.9"></a><var>197.9</var>retirement factor specified below:<br/>
<table>
<col width="50px"/>
<col width="1.4000000000000001"/>
<col width="2.5"/>
<col width="18"/>
<col width="13.799999999999999"/>
<col width="12.8"/>
<col width="13.600000000000001"/>
<col width="12.6"/>
<tr>
<td><a id="pl.197.10"></a><var>197.10</var><br/>
</td>
<td></td>
<td></td>
<td></td>
<td align="center" colspan="2">Under age 62<br/>
</td>
<td align="center" colspan="2">Age 62 or older<br/>
</td>
</tr>
<tr>
<td><a id="pl.197.11"></a><var>197.11</var><br/>
</td>
<td></td>
<td></td>
<td></td>
<td align="center" colspan="2">or less than 30 years of service<br/>
</td>
<td align="center" colspan="2">with 30 years of service<br/>
</td>
</tr>
<tr>
<td><a id="pl.197.12"></a><var>197.12</var><br/>
</td>
<td colspan="3">Normal retirement age:<br/>
</td>
<td align="center">65<br/>
</td>
<td align="center">66<br/>
</td>
<td align="center">65<br/>
</td>
<td align="center">66<br/>
</td>
</tr>
<tr>
<td><a id="pl.197.13"></a><var>197.13</var><br/>
</td>
<td></td>
<td colspan="2">Age at retirement<br/>
</td>
<td></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr>
<td><a id="pl.197.14"></a><var>197.14</var><br/>
</td>
<td></td>
<td></td>
<td align="left">55<br/>
</td>
<td align="center">0.5376<br/>
</td>
<td align="center">0.4592<br/>
</td>
<td align="center"></td>
<td align="center"></td>
</tr>
<tr>
<td><a id="pl.197.15"></a><var>197.15</var><br/>
</td>
<td></td>
<td></td>
<td align="left">56<br/>
</td>
<td align="center">0.5745<br/>
</td>
<td align="center">0.4992<br/>
</td>
<td align="center"></td>
<td align="center"></td>
</tr>
<tr>
<td><a id="pl.197.16"></a><var>197.16</var><br/>
</td>
<td></td>
<td></td>
<td align="left">57<br/>
</td>
<td align="center">0.6092<br/>
</td>
<td align="center">0.5370<br/>
</td>
<td align="center"></td>
<td align="center"></td>
</tr>
<tr>
<td><a id="pl.197.17"></a><var>197.17</var><br/>
</td>
<td></td>
<td></td>
<td align="left">58<br/>
</td>
<td align="center">0.6419<br/>
</td>
<td align="center">0.5726<br/>
</td>
<td align="center"></td>
<td align="center"></td>
</tr>
<tr>
<td><a id="pl.197.18"></a><var>197.18</var><br/>
</td>
<td></td>
<td></td>
<td align="left">59<br/>
</td>
<td align="center">0.6726<br/>
</td>
<td align="center">0.6062<br/>
</td>
<td align="center"></td>
<td align="center"></td>
</tr>
<tr>
<td><a id="pl.197.19"></a><var>197.19</var><br/>
</td>
<td></td>
<td></td>
<td align="left">60<br/>
</td>
<td align="center">0.7354<br/>
</td>
<td align="center">0.6726<br/>
</td>
<td align="center"></td>
<td align="center"></td>
</tr>
<tr>
<td><a id="pl.197.20"></a><var>197.20</var><br/>
</td>
<td></td>
<td></td>
<td align="left">61<br/>
</td>
<td align="center">0.7947<br/>
</td>
<td align="center">0.7354<br/>
</td>
<td align="center"></td>
<td align="center"></td>
</tr>
<tr>
<td><a id="pl.197.21"></a><var>197.21</var><br/>
</td>
<td></td>
<td></td>
<td align="left">62<br/>
</td>
<td align="center">0.8507<br/>
</td>
<td align="center">0.7947<br/>
</td>
<td align="center">0.8831<br/>
</td>
<td align="center">0.8389<br/>
</td>
</tr>
<tr>
<td><a id="pl.197.22"></a><var>197.22</var><br/>
</td>
<td></td>
<td></td>
<td align="left">63<br/>
</td>
<td align="center">0.9035<br/>
</td>
<td align="center">0.8507<br/>
</td>
<td align="center">0.9246<br/>
</td>
<td align="center">0.8831<br/>
</td>
</tr>
<tr>
<td><a id="pl.197.23"></a><var>197.23</var><br/>
</td>
<td></td>
<td></td>
<td align="left">64<br/>
</td>
<td align="center">0.9533<br/>
</td>
<td align="center">0.9035<br/>
</td>
<td align="center">0.9635<br/>
</td>
<td align="center">0.9246<br/>
</td>
</tr>
<tr>
<td><a id="pl.197.24"></a><var>197.24</var><br/>
</td>
<td></td>
<td></td>
<td align="left">65<br/>
</td>
<td align="center">1.0000<br/>
</td>
<td align="center">0.9533<br/>
</td>
<td align="center">1.0000<br/>
</td>
<td align="center">0.9635<br/>
</td>
</tr>
<tr>
<td><a id="pl.197.25"></a><var>197.25</var><br/>
</td>
<td></td>
<td></td>
<td align="left">66<br/>
</td>
<td align="center"></td>
<td align="center">1.0000<br/>
</td>
<td align="center"></td>
<td align="center">1.0000<br/>
</td>
</tr>
</table><a id="pl.197.26"></a><var>197.26</var>For normal retirement ages between ages 65 and 66, the early retirement factors will <br/>
<a id="pl.197.27"></a><var>197.27</var>be determined by linear interpolation between the early retirement factors applicable for <br/>
<a id="pl.197.28"></a><var>197.28</var>normal retirement ages 65 and 66.<br/>
<a id="pl.197.29"></a><var>197.29</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2013.<br/>
<br/>
<a id="bill.13.16.0"></a><a id="pl.197.30"></a><var>197.30</var>    Sec. 16. Minnesota Statutes 2012, section 354A.35, subdivision 2, is amended to read:<br/>
<a id="pl.197.31"></a><var>197.31</var>    Subd. 2. <b>Death while eligible to retire; surviving spouse optional annuity.</b> (a) <br/>
<a id="pl.197.32"></a><var>197.32</var>The surviving spouse of a vested coordinated member who dies prior to retirement may <br/>
<a id="pl.197.33"></a><var>197.33</var>elect to receive, instead of a refund with interest under subdivision 1, an annuity equal <br/>
<a id="pl.197.34"></a><var>197.34</var>to the 100 percent joint and survivor annuity the member could have qualified for had <br/>
<a id="pl.197.35"></a><var>197.35</var>the member terminated service on the date of death. The surviving spouse eligible for <br/>
<a id="pl.197.36"></a><var>197.36</var>a surviving spouse benefit under this paragraph may apply for the annuity at any time <br/>
<a id="pl.197.37"></a><var>197.37</var>after the date on which the deceased employee would have attained the required age for <br/>
<a id="pl.198.1"></a><var>198.1</var>retirement based on the employee's allowable service. A surviving spouse eligible for <br/>
<a id="pl.198.2"></a><var>198.2</var>surviving spouse benefits under paragraph (b) or (c) may apply for an annuity at any time <br/>
<a id="pl.198.3"></a><var>198.3</var>after the member's death. The member's surviving spouse shall be paid a joint and survivor <br/>
<a id="pl.198.4"></a><var>198.4</var>annuity under section 
         <statute_ref>354A.32</statute_ref> and computed under section 
         <statute_ref>354A.31</statute_ref>.<br/>
<a id="pl.198.5"></a><var>198.5</var>(b) If the member was under age 55 and has credit for at least 30 years of allowable <br/>
<a id="pl.198.6"></a><var>198.6</var>service on the date of death, the surviving spouse may elect to receive a 100 percent joint <br/>
<a id="pl.198.7"></a><var>198.7</var>and survivor annuity based on the age of the member and surviving spouse on the date <br/>
<a id="pl.198.8"></a><var>198.8</var>of death. The annuity is payable using the full early retirement reduction under section <br/>
<statute_ref><a id="pl.198.9"></a><var>198.9</var>354A.31, subdivision 6
         </statute_ref>, paragraph (a), to age 55 and one-half of the early retirement <br/>
<a id="pl.198.10"></a><var>198.10</var>reduction from age 55 to the age payment begins.<br/>
<a id="pl.198.11"></a><var>198.11</var>(c) If a vested member of the Duluth Teachers Retirement Fund Association was <br/>
<a id="pl.198.12"></a><var>198.12</var>under age 55 on the date of death but did not yet qualify for retirement, the surviving <br/>
<a id="pl.198.13"></a><var>198.13</var>spouse may elect to receive the 100 percent joint and survivor annuity based on the age <br/>
<a id="pl.198.14"></a><var>198.14</var>of the member and the survivor at the time of death. The annuity is payable using the <br/>
<a id="pl.198.15"></a><var>198.15</var>full early retirement reduction under section 
         <statute_ref>354A.31, subdivision 6</statute_ref> or 7, to age 55 and <br/>
<a id="pl.198.16"></a><var>198.16</var>one-half of the early retirement reduction from age 55 to the date payment begins.<br/>
<a id="pl.198.17"></a><var>198.17</var>(d) If a vested member of the St. Paul Teachers Retirement Fund Association was <br/>
<a id="pl.198.18"></a><var>198.18</var>under age 55 on the date of death but did not yet qualify for retirement, the surviving <br/>
<a id="pl.198.19"></a><var>198.19</var>spouse may elect to receive the 100 percent joint and survivor annuity based on the age <br/>
<a id="pl.198.20"></a><var>198.20</var>of the member and the survivor at the time of death. The annuity is payable using the <br/>
<a id="pl.198.21"></a><var>198.21</var>full early retirement reduction under section 
<statute_ref>354A.31, subdivision 6</statute_ref> or 7, to age 55 and <br/>
<a id="pl.198.22"></a><var>198.22</var>one-half of the actuarial equivalent reduction from age 55 to the date payment begins. <br/>
<a id="pl.198.23"></a><var>198.23</var>The actuarial equivalent reduction is calculated so that the reduced annuity is the actuarial <br/>
<a id="pl.198.24"></a><var>198.24</var>equivalent of the annuity that would be payable to the member if the member deferred <br/>
<a id="pl.198.25"></a><var>198.25</var>receipt of the annuity and the annuity amount were augmented at an annual rate of 2.5 <br/>
<a id="pl.198.26"></a><var>198.26</var>percent compounded annually from the day the annuity begins to accrue until the normal <br/>
<a id="pl.198.27"></a><var>198.27</var>retirement age. <br/>
<a id="pl.198.28"></a><var>198.28</var>(d) (e) Sections 
         <statute_ref>354A.37, subdivision 2</statute_ref>, and 
         <statute_ref>354A.39</statute_ref> apply to a deferred annuity <br/>
<a id="pl.198.29"></a><var>198.29</var>or surviving spouse benefit payable under this section. The benefits are payable for the <br/>
<a id="pl.198.30"></a><var>198.30</var>life of the surviving spouse, or upon expiration of the term certain benefit payment under <br/>
<a id="pl.198.31"></a><var>198.31</var>subdivision 2b.<br/>
<a id="pl.198.32"></a><var>198.32</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.13.17.0"></a><a id="pl.198.33"></a><var>198.33</var>    Sec. 17. Minnesota Statutes 2012, section 356.215, subdivision 8, is amended to read:<br/>
<a id="pl.199.1"></a><var>199.1</var>    Subd. 8. <b>Interest and salary assumptions.</b> (a) The actuarial valuation must use <br/>
<a id="pl.199.2"></a><var>199.2</var>the applicable following preretirement interest assumption and the applicable following <br/>
<a id="pl.199.3"></a><var>199.3</var>postretirement interest assumption:<br/>
<a id="pl.199.4"></a><var>199.4</var>(1) select and ultimate interest rate assumption<br/>
<table>
<col width="50px"/>
<col width="35"/>
<col width="15"/>
<col width="15"/>
<tr>
<td><a id="pl.199.5"></a><var>199.5</var><br/>
<a id="pl.199.6"></a><var>199.6</var><br/>
<a id="pl.199.7"></a><var>199.7</var><br/>
<a id="pl.199.8"></a><var>199.8</var><br/>
</td>
<td align="center">plan<br/>
</td>
<td align="center">ultimate <br/>
                  		preretirement <br/>
                  		interest rate <br/>
                  		assumption<br/>
</td>
<td align="center">ultimate <br/>
                  		postretirement <br/>
                  		interest rate <br/>
                  		assumption<br/>
</td>
</tr>
<tr>
<td><a id="pl.199.9"></a><var>199.9</var><br/>
</td>
<td valign="top">general state employees retirement plan<br/>
</td>
<td align="center" valign="top"> 8.5%<br/>
</td>
<td align="center" valign="top"> 6.0%<br/>
</td>
</tr>
<tr>
<td><a id="pl.199.10"></a><var>199.10</var><br/>
</td>
<td valign="top">correctional state employees retirement plan<br/>
</td>
<td align="center" valign="top">8.5<br/>
</td>
<td align="center" valign="top">6.0<br/>
</td>
</tr>
<tr>
<td><a id="pl.199.11"></a><var>199.11</var><br/>
</td>
<td valign="top">State Patrol retirement plan<br/>
</td>
<td align="center" valign="top">8.5<br/>
</td>
<td align="center" valign="top">6.0<br/>
</td>
</tr>
<tr>
<td><a id="pl.199.12"></a><var>199.12</var><br/>
<a id="pl.199.13"></a><var>199.13</var><br/>
<a id="pl.199.14"></a><var>199.14</var><br/>
</td>
<td valign="top">legislators retirement plan<br/>
</td>
<td align="center" valign="top"> 0.0 <br/>
</td>
<td align="center" valign="top"> -2.0 until June 30, <br/>
                  		2040, and -2.5 after <br/>
                  		June 30, 2040 <br/>
</td>
</tr>
<tr>
<td><a id="pl.199.15"></a><var>199.15</var><br/>
<a id="pl.199.16"></a><var>199.16</var><br/>
<a id="pl.199.17"></a><var>199.17</var><br/>
</td>
<td valign="top">elective state officers retirement plan<br/>
</td>
<td align="center" valign="top"> 0.0 <br/>
</td>
<td align="center" valign="top"> -2.0 until June 30, <br/>
                  		2040, and -2.5 after <br/>
                  		June 30, 2040 <br/>
</td>
</tr>
<tr>
<td><a id="pl.199.18"></a><var>199.18</var><br/>
</td>
<td valign="top">judges retirement plan<br/>
</td>
<td align="center" valign="top">8.5<br/>
</td>
<td align="center" valign="top">6.0<br/>
</td>
</tr>
<tr>
<td><a id="pl.199.19"></a><var>199.19</var><br/>
</td>
<td valign="top">general public employees retirement plan<br/>
</td>
<td align="center" valign="top">8.5<br/>
</td>
<td align="center" valign="top">6.0<br/>
</td>
</tr>
<tr>
<td><a id="pl.199.20"></a><var>199.20</var><br/>
</td>
<td valign="top">public employees police and fire retirement plan<br/>
</td>
<td align="center" valign="top">8.5<br/>
</td>
<td align="center" valign="top">6.0<br/>
</td>
</tr>
<tr>
<td><a id="pl.199.21"></a><var>199.21</var><br/>
<a id="pl.199.22"></a><var>199.22</var><br/>
</td>
<td valign="top">local government correctional service <br/>
                  		retirement plan<br/>
</td>
<td align="center" valign="top">8.5<br/>
</td>
<td align="center" valign="top">6.0<br/>
</td>
</tr>
<tr>
<td><a id="pl.199.23"></a><var>199.23</var><br/>
</td>
<td valign="top">teachers retirement plan<br/>
</td>
<td align="center" valign="top">8.5<br/>
</td>
<td align="center" valign="top">6.0<br/>
</td>
</tr>
<tr>
<td><a id="pl.199.24"></a><var>199.24</var><br/>
</td>
<td valign="top">Duluth teachers retirement plan<br/>
</td>
<td align="center" valign="top">8.5<br/>
</td>
<td align="center" valign="top">8.5<br/>
</td>
</tr>
<tr>
<td><a id="pl.199.25"></a><var>199.25</var><br/>
</td>
<td valign="top">St. Paul teachers retirement plan<br/>
</td>
<td align="center" valign="top">8.5<br/>
</td>
<td align="center" valign="top">8.5<br/>
</td>
</tr>
</table><a id="pl.199.26"></a><var>199.26</var>Except for the legislators retirement plan and the elective state officers retirement <br/>
<a id="pl.199.27"></a><var>199.27</var>plan, the select preretirement interest rate assumption for the period after June 30, 2012, <br/>
<a id="pl.199.28"></a><var>199.28</var>through June 30, 2017, is 8.0 percent. Except for the legislators retirement plan and the <br/>
<a id="pl.199.29"></a><var>199.29</var>elective state officers retirement plan, the select postretirement interest rate assumption for <br/>
<a id="pl.199.30"></a><var>199.30</var>the period after June 30, 2012, through June 30, 2017, is 5.5 percent, except for the Duluth <br/>
<a id="pl.199.31"></a><var>199.31</var>teachers retirement plan and the St. Paul teachers retirement plan, each with a select <br/>
<a id="pl.199.32"></a><var>199.32</var>postretirement interest rate assumption for the period after June 30, 2012, through June <br/>
<a id="pl.199.33"></a><var>199.33</var>30, 2017, of 8.0 percent.<br/>
<a id="pl.199.34"></a><var>199.34</var>(2) single rate preretirement and postretirement interest rate assumption<br/>
<table>
<col width="50px"/>
<col width="16.5"/>
<col width="6.7"/>
<col width="6.5"/>
<tr>
<td><a id="pl.199.35"></a><var>199.35</var><br/>
<a id="pl.199.36"></a><var>199.36</var><br/>
</td>
<td align="center">plan<br/>
</td>
<td align="center">interest rate <br/>
                  		assumption<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.199.37"></a><var>199.37</var><br/>
</td>
<td>Bloomington Fire Department Relief Association<br/>
</td>
<td align="center">6.0<br/>
</td>
<td align="center"></td>
</tr>
<tr>
<td><a id="pl.199.38"></a><var>199.38</var><br/>
<a id="pl.199.39"></a><var>199.39</var><br/>
</td>
<td>local monthly benefit volunteer firefighters relief <br/>
                  		associations<br/>
</td>
<td align="center">5.0<br/>
</td>
<td align="center"></td>
</tr>
</table><a id="pl.199.40"></a><var>199.40</var>    (b) The actuarial valuation must use the applicable following single rate future salary <br/>
<a id="pl.199.41"></a><var>199.41</var>increase assumption, the applicable following modified single rate future salary increase <br/>
<a id="pl.199.42"></a><var>199.42</var>assumption, or the applicable following graded rate future salary increase assumption:<br/>
<a id="pl.200.1"></a><var>200.1</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.200.2"></a><var>200.2</var><br/>
</td>
<td align="center">plan<br/>
</td>
<td align="center" colspan="2">future salary increase assumption<br/>
</td>
</tr>
<tr>
<td><a id="pl.200.3"></a><var>200.3</var><br/>
</td>
<td>legislators retirement plan<br/>
</td>
<td></td>
<td>5.0%<br/>
</td>
</tr>
<tr>
<td><a id="pl.200.4"></a><var>200.4</var><br/>
</td>
<td>judges retirement plan<br/>
</td>
<td></td>
<td>3.0 <br/>
</td>
</tr>
<tr>
<td><a id="pl.200.5"></a><var>200.5</var><br/>
<a id="pl.200.6"></a><var>200.6</var><br/>
</td>
<td>Bloomington Fire Department Relief <br/>
                  		Association<br/>
</td>
<td></td>
<td>4.0<br/>
</td>
</tr>
</table><a id="pl.200.7"></a><var>200.7</var>    (2) age-related future salary increase age-related select and ultimate future salary <br/>
<a id="pl.200.8"></a><var>200.8</var>increase assumption or graded rate future salary increase assumption<br/>
<table>
<col width="50px"/>
<col width="40"/>
<col width="25"/>
<tr>
<td><a id="pl.200.9"></a><var>200.9</var><br/>
</td>
<td align="center">plan<br/>
</td>
<td align="center">future salary increase assumption<br/>
</td>
</tr>
<tr>
<td><a id="pl.200.10"></a><var>200.10</var><br/>
</td>
<td>local government correctional service retirement plan<br/>
</td>
<td align="center">assumption C<br/>
</td>
</tr>
<tr>
<td><a id="pl.200.11"></a><var>200.11</var><br/>
</td>
<td>Duluth teachers retirement plan<br/>
</td>
<td align="center">assumption A<br/>
</td>
</tr>
<tr>
<td><a id="pl.200.12"></a><var>200.12</var><br/>
</td>
<td>St. Paul teachers retirement plan<br/>
</td>
<td align="center">assumption B<br/>
</td>
</tr>
</table><a id="pl.200.13"></a><var>200.13</var>For plans other than the Duluth teachers <br/>
<a id="pl.200.14"></a><var>200.14</var>retirement plan, the select calculation <br/>
<a id="pl.200.15"></a><var>200.15</var>is: during the designated select period, a <br/>
<a id="pl.200.16"></a><var>200.16</var>designated percentage rate is multiplied by <br/>
<a id="pl.200.17"></a><var>200.17</var>the result of the designated integer minus T, <br/>
<a id="pl.200.18"></a><var>200.18</var>where T is the number of completed years <br/>
<a id="pl.200.19"></a><var>200.19</var>of service, and is added to the applicable <br/>
<a id="pl.200.20"></a><var>200.20</var>future salary increase assumption. The <br/>
<a id="pl.200.21"></a><var>200.21</var>designated select period is ten years and the <br/>
<a id="pl.200.22"></a><var>200.22</var>designated integer is ten for all retirement <br/>
<a id="pl.200.23"></a><var>200.23</var>plans covered by this clause the Duluth <br/>
<a id="pl.200.24"></a><var>200.24</var>Teachers Retirement Fund Association <br/>
<a id="pl.200.25"></a><var>200.25</var>and for the local government correctional <br/>
<a id="pl.200.26"></a><var>200.26</var>service retirement plan and 15 for the St. <br/>
<a id="pl.200.27"></a><var>200.27</var>Paul Teachers Retirement Fund Association. <br/>
<a id="pl.200.28"></a><var>200.28</var>The designated percentage rate is 0.3 0.2 <br/>
<a id="pl.200.29"></a><var>200.29</var>percent for the St. Paul Teachers Retirement <br/>
<a id="pl.200.30"></a><var>200.30</var>Fund Association. The select calculation <br/>
<a id="pl.200.31"></a><var>200.31</var>for the Duluth Teachers Retirement Fund <br/>
<a id="pl.200.32"></a><var>200.32</var>Association is 8.00 percent per year for <br/>
<a id="pl.200.33"></a><var>200.33</var>service years one through seven, 7.25 percent <br/>
<a id="pl.200.34"></a><var>200.34</var>per year for service years seven and eight, <br/>
<a id="pl.200.35"></a><var>200.35</var>and 6.50 percent per year for service years <br/>
<a id="pl.200.36"></a><var>200.36</var>eight and nine.<br/>
<a id="pl.200.37"></a><var>200.37</var>    The ultimate future salary increase assumption is:<br/>
<table>
<col width="50px"/>
<col width="10"/>
<col width="12.5"/>
<col width="12.5"/>
<col width="15"/>
<col width="15"/>
<tr>
<td><a id="pl.201.1"></a><var>201.1</var><br/>
</td>
<td>age<br/>
</td>
<td>A<br/>
</td>
<td>B<br/>
</td>
<td>C<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.201.2"></a><var>201.2</var><br/>
</td>
<td>16<br/>
</td>
<td>8.00%6.00%<br/>
</td>
<td>6.90%5.90%<br/>
</td>
<td>9.00%<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.201.3"></a><var>201.3</var><br/>
</td>
<td>17<br/>
</td>
<td>8.006.00<br/>
</td>
<td>6.905.90<br/>
</td>
<td>9.00<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.201.4"></a><var>201.4</var><br/>
</td>
<td>18<br/>
</td>
<td>8.006.00<br/>
</td>
<td>6.905.90<br/>
</td>
<td>9.00<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.201.5"></a><var>201.5</var><br/>
</td>
<td>19<br/>
</td>
<td>8.006.00<br/>
</td>
<td>6.905.90<br/>
</td>
<td>9.00<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.201.6"></a><var>201.6</var><br/>
</td>
<td>20<br/>
</td>
<td>6.906.00<br/>
</td>
<td>6.905.90<br/>
</td>
<td>9.00<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.201.7"></a><var>201.7</var><br/>
</td>
<td>21<br/>
</td>
<td>6.906.00<br/>
</td>
<td>6.905.90<br/>
</td>
<td>8.75<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.201.8"></a><var>201.8</var><br/>
</td>
<td>22<br/>
</td>
<td>6.906.00<br/>
</td>
<td>6.905.90<br/>
</td>
<td>8.50<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.201.9"></a><var>201.9</var><br/>
</td>
<td>23<br/>
</td>
<td>6.856.00<br/>
</td>
<td>6.855.85<br/>
</td>
<td>8.25<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.201.10"></a><var>201.10</var><br/>
</td>
<td>24<br/>
</td>
<td>6.806.00<br/>
</td>
<td>6.805.80<br/>
</td>
<td>8.00<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.201.11"></a><var>201.11</var><br/>
</td>
<td>25<br/>
</td>
<td>6.756.00<br/>
</td>
<td>6.755.75<br/>
</td>
<td>7.75<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.201.12"></a><var>201.12</var><br/>
</td>
<td>26<br/>
</td>
<td>6.706.00<br/>
</td>
<td>6.705.70<br/>
</td>
<td>7.50<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.201.13"></a><var>201.13</var><br/>
</td>
<td>27<br/>
</td>
<td>6.656.00<br/>
</td>
<td>6.655.65<br/>
</td>
<td>7.25<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.201.14"></a><var>201.14</var><br/>
</td>
<td>28<br/>
</td>
<td>6.606.00<br/>
</td>
<td>6.605.60<br/>
</td>
<td>7.00<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.201.15"></a><var>201.15</var><br/>
</td>
<td>29<br/>
</td>
<td>6.556.00<br/>
</td>
<td>6.555.55<br/>
</td>
<td>6.75<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.201.16"></a><var>201.16</var><br/>
</td>
<td>30<br/>
</td>
<td>6.506.00<br/>
</td>
<td>6.505.50<br/>
</td>
<td>6.75<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.201.17"></a><var>201.17</var><br/>
</td>
<td>31<br/>
</td>
<td>6.456.00<br/>
</td>
<td>6.455.45<br/>
</td>
<td>6.50<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.201.18"></a><var>201.18</var><br/>
</td>
<td>32<br/>
</td>
<td>6.406.00<br/>
</td>
<td>6.405.40<br/>
</td>
<td>6.50<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.201.19"></a><var>201.19</var><br/>
</td>
<td>33<br/>
</td>
<td>6.356.00<br/>
</td>
<td>6.355.35<br/>
</td>
<td>6.50<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.201.20"></a><var>201.20</var><br/>
</td>
<td>34<br/>
</td>
<td>6.306.00<br/>
</td>
<td>6.305.30<br/>
</td>
<td>6.25<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.201.21"></a><var>201.21</var><br/>
</td>
<td>35<br/>
</td>
<td>6.256.00<br/>
</td>
<td>6.255.25<br/>
</td>
<td>6.25<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.201.22"></a><var>201.22</var><br/>
</td>
<td>36<br/>
</td>
<td>6.205.86<br/>
</td>
<td>6.205.20<br/>
</td>
<td>6.00<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.201.23"></a><var>201.23</var><br/>
</td>
<td>37<br/>
</td>
<td>6.155.73<br/>
</td>
<td>6.155.15<br/>
</td>
<td>6.00<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.201.24"></a><var>201.24</var><br/>
</td>
<td>38<br/>
</td>
<td>6.105.59<br/>
</td>
<td>6.105.10<br/>
</td>
<td>6.00<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.201.25"></a><var>201.25</var><br/>
</td>
<td>39<br/>
</td>
<td>6.055.45<br/>
</td>
<td>6.055.05<br/>
</td>
<td>5.75<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.201.26"></a><var>201.26</var><br/>
</td>
<td>40<br/>
</td>
<td>6.005.31<br/>
</td>
<td>6.005.00<br/>
</td>
<td>5.75<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.201.27"></a><var>201.27</var><br/>
</td>
<td>41<br/>
</td>
<td>5.905.18<br/>
</td>
<td>5.954.95<br/>
</td>
<td>5.75<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.201.28"></a><var>201.28</var><br/>
</td>
<td>42<br/>
</td>
<td>5.805.04<br/>
</td>
<td>5.904.90<br/>
</td>
<td>5.50<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.201.29"></a><var>201.29</var><br/>
</td>
<td>43<br/>
</td>
<td>5.704.90<br/>
</td>
<td>5.854.85<br/>
</td>
<td>5.25<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.201.30"></a><var>201.30</var><br/>
</td>
<td>44<br/>
</td>
<td>5.604.76<br/>
</td>
<td>5.804.80<br/>
</td>
<td>5.25<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.201.31"></a><var>201.31</var><br/>
</td>
<td>45<br/>
</td>
<td>5.504.63<br/>
</td>
<td>5.754.75<br/>
</td>
<td>5.00<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.201.32"></a><var>201.32</var><br/>
</td>
<td>46<br/>
</td>
<td>5.404.49<br/>
</td>
<td>5.704.70<br/>
</td>
<td>5.00<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.201.33"></a><var>201.33</var><br/>
</td>
<td>47<br/>
</td>
<td>5.304.35<br/>
</td>
<td>5.654.65<br/>
</td>
<td>5.00<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.201.34"></a><var>201.34</var><br/>
</td>
<td>48<br/>
</td>
<td>5.204.21<br/>
</td>
<td>5.604.60<br/>
</td>
<td>5.00<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.201.35"></a><var>201.35</var><br/>
</td>
<td>49<br/>
</td>
<td>5.104.08<br/>
</td>
<td>5.554.55<br/>
</td>
<td>5.00<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.201.36"></a><var>201.36</var><br/>
</td>
<td>50<br/>
</td>
<td>5.003.94<br/>
</td>
<td>5.504.50<br/>
</td>
<td>5.00<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.201.37"></a><var>201.37</var><br/>
</td>
<td>51<br/>
</td>
<td>4.903.80<br/>
</td>
<td>5.454.45<br/>
</td>
<td>5.00<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.201.38"></a><var>201.38</var><br/>
</td>
<td>52<br/>
</td>
<td>4.803.66<br/>
</td>
<td>5.404.40<br/>
</td>
<td>5.00<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.201.39"></a><var>201.39</var><br/>
</td>
<td>53<br/>
</td>
<td>4.703.53<br/>
</td>
<td>5.354.35<br/>
</td>
<td>5.00<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.201.40"></a><var>201.40</var><br/>
</td>
<td>54<br/>
</td>
<td>4.603.39<br/>
</td>
<td>5.304.30<br/>
</td>
<td>5.00<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.201.41"></a><var>201.41</var><br/>
</td>
<td>55<br/>
</td>
<td>4.503.25<br/>
</td>
<td>5.254.25<br/>
</td>
<td>4.75<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.201.42"></a><var>201.42</var><br/>
</td>
<td>56<br/>
</td>
<td>4.403.25<br/>
</td>
<td>5.204.20<br/>
</td>
<td>4.75<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.201.43"></a><var>201.43</var><br/>
</td>
<td>57<br/>
</td>
<td>4.303.25<br/>
</td>
<td>5.154.15<br/>
</td>
<td>4.50<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.202.1"></a><var>202.1</var><br/>
</td>
<td>58<br/>
</td>
<td>4.203.25<br/>
</td>
<td>5.104.10<br/>
</td>
<td>4.25<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.202.2"></a><var>202.2</var><br/>
</td>
<td>59<br/>
</td>
<td>4.103.25<br/>
</td>
<td>5.054.05<br/>
</td>
<td>4.25<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.202.3"></a><var>202.3</var><br/>
</td>
<td>60<br/>
</td>
<td>4.003.25<br/>
</td>
<td>5.004.00<br/>
</td>
<td>4.25<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.202.4"></a><var>202.4</var><br/>
</td>
<td>61<br/>
</td>
<td>3.903.25<br/>
</td>
<td>5.004.00<br/>
</td>
<td>4.25<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.202.5"></a><var>202.5</var><br/>
</td>
<td>62<br/>
</td>
<td>3.803.25<br/>
</td>
<td>5.004.00<br/>
</td>
<td>4.25<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.202.6"></a><var>202.6</var><br/>
</td>
<td>63<br/>
</td>
<td>3.703.25<br/>
</td>
<td>5.004.00<br/>
</td>
<td>4.25<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.202.7"></a><var>202.7</var><br/>
</td>
<td>64<br/>
</td>
<td>3.603.25<br/>
</td>
<td>5.004.00<br/>
</td>
<td>4.25<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.202.8"></a><var>202.8</var><br/>
</td>
<td>65<br/>
</td>
<td>3.503.25<br/>
</td>
<td>5.004.00<br/>
</td>
<td>4.00<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.202.9"></a><var>202.9</var><br/>
</td>
<td>66<br/>
</td>
<td>3.503.25<br/>
</td>
<td>5.004.00<br/>
</td>
<td>4.00<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.202.10"></a><var>202.10</var><br/>
</td>
<td>67<br/>
</td>
<td>3.503.25<br/>
</td>
<td>5.004.00<br/>
</td>
<td>4.00<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.202.11"></a><var>202.11</var><br/>
</td>
<td>68<br/>
</td>
<td>3.503.25<br/>
</td>
<td>5.004.00<br/>
</td>
<td>4.00<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.202.12"></a><var>202.12</var><br/>
</td>
<td>69<br/>
</td>
<td>3.503.25<br/>
</td>
<td>5.004.00<br/>
</td>
<td>4.00<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.202.13"></a><var>202.13</var><br/>
</td>
<td>70<br/>
</td>
<td>3.503.25<br/>
</td>
<td>5.004.00<br/>
</td>
<td>4.00<br/>
</td>
<td></td>
</tr>
</table><a id="pl.202.14"></a><var>202.14</var>(3) service-related ultimate future salary increase assumption<br/>
<table>
<col width="50px"/>
<col width="40"/>
<col width="25"/>
<tr>
<td><a id="pl.202.15"></a><var>202.15</var><br/>
<a id="pl.202.16"></a><var>202.16</var><br/>
</td>
<td>general state employees retirement plan of the <br/>
                  		Minnesota State Retirement System<br/>
</td>
<td align="center">assumption A<br/>
</td>
</tr>
<tr>
<td><a id="pl.202.17"></a><var>202.17</var><br/>
<a id="pl.202.18"></a><var>202.18</var><br/>
</td>
<td>general employees retirement plan of the Public <br/>
                  		Employees Retirement Association<br/>
</td>
<td align="center">assumption B<br/>
</td>
</tr>
<tr>
<td><a id="pl.202.19"></a><var>202.19</var><br/>
</td>
<td>Teachers Retirement Association<br/>
</td>
<td align="center">assumption C<br/>
</td>
</tr>
<tr>
<td><a id="pl.202.20"></a><var>202.20</var><br/>
</td>
<td>public employees police and fire retirement plan<br/>
</td>
<td align="center">assumption D<br/>
</td>
</tr>
<tr>
<td><a id="pl.202.21"></a><var>202.21</var><br/>
</td>
<td>State Patrol retirement plan<br/>
</td>
<td align="center">assumption E<br/>
</td>
</tr>
<tr>
<td><a id="pl.202.22"></a><var>202.22</var><br/>
<a id="pl.202.23"></a><var>202.23</var><br/>
</td>
<td>correctional state employees retirement plan of the <br/>
                  		Minnesota State Retirement System<br/>
</td>
<td align="center">assumption F<br/>
</td>
</tr>
</table>
<table>
<col width="50px"/>
<col width="8.5"/>
<col width="8.5"/>
<col width="8.5"/>
<col width="8.5"/>
<col width="8.5"/>
<col width="8.5"/>
<col width="8.5"/>
<tr>
<td><a id="pl.202.24"></a><var>202.24</var><br/>
<a id="pl.202.25"></a><var>202.25</var><br/>
</td>
<td>service <br/>
                  		length<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>
</tr>
<tr>
<td><a id="pl.202.26"></a><var>202.26</var><br/>
</td>
<td>1<br/>
</td>
<td>10.50%<br/>
</td>
<td>12.03%<br/>
</td>
<td>12.00%<br/>
</td>
<td>13.00%<br/>
</td>
<td>8.00%<br/>
</td>
<td>6.00%<br/>
</td>
</tr>
<tr>
<td><a id="pl.202.27"></a><var>202.27</var><br/>
</td>
<td>2<br/>
</td>
<td>8.10<br/>
</td>
<td>8.90<br/>
</td>
<td>9.00<br/>
</td>
<td>11.00<br/>
</td>
<td>7.50<br/>
</td>
<td>5.85<br/>
</td>
</tr>
<tr>
<td><a id="pl.202.28"></a><var>202.28</var><br/>
</td>
<td>3<br/>
</td>
<td>6.90<br/>
</td>
<td>7.46<br/>
</td>
<td>8.00<br/>
</td>
<td>9.00<br/>
</td>
<td>7.00<br/>
</td>
<td>5.70<br/>
</td>
</tr>
<tr>
<td><a id="pl.202.29"></a><var>202.29</var><br/>
</td>
<td>4<br/>
</td>
<td>6.20<br/>
</td>
<td>6.58<br/>
</td>
<td>7.50<br/>
</td>
<td>8.00<br/>
</td>
<td>6.75<br/>
</td>
<td>5.55<br/>
</td>
</tr>
<tr>
<td><a id="pl.202.30"></a><var>202.30</var><br/>
</td>
<td>5<br/>
</td>
<td>5.70<br/>
</td>
<td>5.97<br/>
</td>
<td>7.25<br/>
</td>
<td>6.50<br/>
</td>
<td>6.50<br/>
</td>
<td>5.40<br/>
</td>
</tr>
<tr>
<td><a id="pl.202.31"></a><var>202.31</var><br/>
</td>
<td>6<br/>
</td>
<td>5.30<br/>
</td>
<td>5.52<br/>
</td>
<td>7.00<br/>
</td>
<td>6.10<br/>
</td>
<td>6.25<br/>
</td>
<td>5.25<br/>
</td>
</tr>
<tr>
<td><a id="pl.202.32"></a><var>202.32</var><br/>
</td>
<td>7<br/>
</td>
<td>5.00<br/>
</td>
<td>5.16<br/>
</td>
<td>6.85<br/>
</td>
<td>5.80<br/>
</td>
<td>6.00<br/>
</td>
<td>5.10<br/>
</td>
</tr>
<tr>
<td><a id="pl.202.33"></a><var>202.33</var><br/>
</td>
<td>8<br/>
</td>
<td>4.70<br/>
</td>
<td>4.87<br/>
</td>
<td>6.70<br/>
</td>
<td>5.60<br/>
</td>
<td>5.85<br/>
</td>
<td>4.95<br/>
</td>
</tr>
<tr>
<td><a id="pl.202.34"></a><var>202.34</var><br/>
</td>
<td>9<br/>
</td>
<td>4.50<br/>
</td>
<td>4.63<br/>
</td>
<td>6.55<br/>
</td>
<td>5.40<br/>
</td>
<td>5.70<br/>
</td>
<td>4.80<br/>
</td>
</tr>
<tr>
<td><a id="pl.202.35"></a><var>202.35</var><br/>
</td>
<td>10<br/>
</td>
<td>4.40<br/>
</td>
<td>4.42<br/>
</td>
<td>6.40<br/>
</td>
<td>5.30<br/>
</td>
<td>5.55<br/>
</td>
<td>4.65<br/>
</td>
</tr>
<tr>
<td><a id="pl.202.36"></a><var>202.36</var><br/>
</td>
<td>11<br/>
</td>
<td>4.20<br/>
</td>
<td>4.24<br/>
</td>
<td>6.25<br/>
</td>
<td>5.20<br/>
</td>
<td>5.40<br/>
</td>
<td>4.55<br/>
</td>
</tr>
<tr>
<td><a id="pl.202.37"></a><var>202.37</var><br/>
</td>
<td>12<br/>
</td>
<td>4.10<br/>
</td>
<td>4.08<br/>
</td>
<td>6.00<br/>
</td>
<td>5.10<br/>
</td>
<td>5.25<br/>
</td>
<td>4.45<br/>
</td>
</tr>
<tr>
<td><a id="pl.202.38"></a><var>202.38</var><br/>
</td>
<td>13<br/>
</td>
<td>4.00<br/>
</td>
<td>3.94<br/>
</td>
<td>5.75<br/>
</td>
<td>5.00<br/>
</td>
<td>5.10<br/>
</td>
<td>4.35<br/>
</td>
</tr>
<tr>
<td><a id="pl.202.39"></a><var>202.39</var><br/>
</td>
<td>14<br/>
</td>
<td>3.80<br/>
</td>
<td>3.82<br/>
</td>
<td>5.50<br/>
</td>
<td>4.90<br/>
</td>
<td>4.95<br/>
</td>
<td>4.25<br/>
</td>
</tr>
<tr>
<td><a id="pl.202.40"></a><var>202.40</var><br/>
</td>
<td>15<br/>
</td>
<td>3.70<br/>
</td>
<td>3.70<br/>
</td>
<td>5.25<br/>
</td>
<td>4.80<br/>
</td>
<td>4.80<br/>
</td>
<td>4.15<br/>
</td>
</tr>
<tr>
<td><a id="pl.202.41"></a><var>202.41</var><br/>
</td>
<td>16<br/>
</td>
<td>3.60<br/>
</td>
<td>3.60<br/>
</td>
<td>5.00<br/>
</td>
<td>4.80<br/>
</td>
<td>4.65<br/>
</td>
<td>4.05<br/>
</td>
</tr>
<tr>
<td><a id="pl.202.42"></a><var>202.42</var><br/>
</td>
<td>17<br/>
</td>
<td>3.50<br/>
</td>
<td>3.51<br/>
</td>
<td>4.75<br/>
</td>
<td>4.80<br/>
</td>
<td>4.50<br/>
</td>
<td>3.95<br/>
</td>
</tr>
<tr>
<td><a id="pl.202.43"></a><var>202.43</var><br/>
</td>
<td>18<br/>
</td>
<td>3.50<br/>
</td>
<td>3.50<br/>
</td>
<td>4.50<br/>
</td>
<td>4.80<br/>
</td>
<td>4.35<br/>
</td>
<td>3.85<br/>
</td>
</tr>
<tr>
<td><a id="pl.203.1"></a><var>203.1</var><br/>
</td>
<td>19<br/>
</td>
<td>3.50<br/>
</td>
<td>3.50<br/>
</td>
<td>4.25<br/>
</td>
<td>4.80<br/>
</td>
<td>4.20<br/>
</td>
<td>3.75<br/>
</td>
</tr>
<tr>
<td><a id="pl.203.2"></a><var>203.2</var><br/>
</td>
<td>20<br/>
</td>
<td>3.50<br/>
</td>
<td>3.50<br/>
</td>
<td>4.00<br/>
</td>
<td>4.80<br/>
</td>
<td>4.05<br/>
</td>
<td>3.75<br/>
</td>
</tr>
<tr>
<td><a id="pl.203.3"></a><var>203.3</var><br/>
</td>
<td>21<br/>
</td>
<td>3.50<br/>
</td>
<td>3.50<br/>
</td>
<td>3.90<br/>
</td>
<td>4.70<br/>
</td>
<td>4.00<br/>
</td>
<td>3.75<br/>
</td>
</tr>
<tr>
<td><a id="pl.203.4"></a><var>203.4</var><br/>
</td>
<td>22<br/>
</td>
<td>3.50<br/>
</td>
<td>3.50<br/>
</td>
<td>3.80<br/>
</td>
<td>4.60<br/>
</td>
<td>4.00<br/>
</td>
<td>3.75<br/>
</td>
</tr>
<tr>
<td><a id="pl.203.5"></a><var>203.5</var><br/>
</td>
<td>23<br/>
</td>
<td>3.50<br/>
</td>
<td>3.50<br/>
</td>
<td>3.70<br/>
</td>
<td>4.50<br/>
</td>
<td>4.00<br/>
</td>
<td>3.75<br/>
</td>
</tr>
<tr>
<td><a id="pl.203.6"></a><var>203.6</var><br/>
</td>
<td>24<br/>
</td>
<td>3.50<br/>
</td>
<td>3.50<br/>
</td>
<td>3.60<br/>
</td>
<td>4.50<br/>
</td>
<td>4.00<br/>
</td>
<td>3.75<br/>
</td>
</tr>
<tr>
<td><a id="pl.203.7"></a><var>203.7</var><br/>
</td>
<td>25<br/>
</td>
<td>3.50<br/>
</td>
<td>3.50<br/>
</td>
<td>3.50<br/>
</td>
<td>4.50<br/>
</td>
<td>4.00<br/>
</td>
<td>3.75<br/>
</td>
</tr>
<tr>
<td><a id="pl.203.8"></a><var>203.8</var><br/>
</td>
<td>26<br/>
</td>
<td>3.50<br/>
</td>
<td>3.50<br/>
</td>
<td>3.50<br/>
</td>
<td>4.50<br/>
</td>
<td>4.00<br/>
</td>
<td>3.75<br/>
</td>
</tr>
<tr>
<td><a id="pl.203.9"></a><var>203.9</var><br/>
</td>
<td>27<br/>
</td>
<td>3.50<br/>
</td>
<td>3.50<br/>
</td>
<td>3.50<br/>
</td>
<td>4.50<br/>
</td>
<td>4.00<br/>
</td>
<td>3.75<br/>
</td>
</tr>
<tr>
<td><a id="pl.203.10"></a><var>203.10</var><br/>
</td>
<td>28<br/>
</td>
<td>3.50<br/>
</td>
<td>3.50<br/>
</td>
<td>3.50<br/>
</td>
<td>4.50<br/>
</td>
<td>4.00<br/>
</td>
<td>3.75<br/>
</td>
</tr>
<tr>
<td><a id="pl.203.11"></a><var>203.11</var><br/>
</td>
<td>29<br/>
</td>
<td>3.50<br/>
</td>
<td>3.50<br/>
</td>
<td>3.50<br/>
</td>
<td>4.50<br/>
</td>
<td>4.00<br/>
</td>
<td>3.75<br/>
</td>
</tr>
<tr>
<td><a id="pl.203.12"></a><var>203.12</var><br/>
</td>
<td>30 or more<br/>
</td>
<td>3.50<br/>
</td>
<td>3.50<br/>
</td>
<td>3.50<br/>
</td>
<td>4.50<br/>
</td>
<td>4.00<br/>
</td>
<td>3.75<br/>
</td>
</tr>
</table><a id="pl.203.13"></a><var>203.13</var>    (c) The actuarial valuation must use the applicable following payroll growth <br/>
<a id="pl.203.14"></a><var>203.14</var>assumption for calculating the amortization requirement for the unfunded actuarial <br/>
<a id="pl.203.15"></a><var>203.15</var>accrued liability where the amortization retirement is calculated as a level percentage <br/>
<a id="pl.203.16"></a><var>203.16</var>of an increasing payroll:<br/>
<table>
<col width="50px"/>
<col width="40"/>
<col width="25"/>
<tr>
<td><a id="pl.203.17"></a><var>203.17</var><br/>
</td>
<td align="center">plan<br/>
</td>
<td align="center">payroll growth assumption<br/>
</td>
</tr>
<tr>
<td><a id="pl.203.18"></a><var>203.18</var><br/>
<a id="pl.203.19"></a><var>203.19</var><br/>
</td>
<td>general state employees retirement plan of the <br/>
                  		Minnesota State Retirement System<br/>
</td>
<td align="center">3.75%<br/>
</td>
</tr>
<tr>
<td><a id="pl.203.20"></a><var>203.20</var><br/>
</td>
<td>correctional state employees retirement plan<br/>
</td>
<td align="center">3.75<br/>
</td>
</tr>
<tr>
<td><a id="pl.203.21"></a><var>203.21</var><br/>
</td>
<td>State Patrol retirement plan<br/>
</td>
<td align="center">3.75<br/>
</td>
</tr>
<tr>
<td><a id="pl.203.22"></a><var>203.22</var><br/>
</td>
<td>judges retirement plan<br/>
</td>
<td align="center">3.00<br/>
</td>
</tr>
<tr>
<td><a id="pl.203.23"></a><var>203.23</var><br/>
<a id="pl.203.24"></a><var>203.24</var><br/>
</td>
<td>general employees retirement plan of the Public <br/>
                  		Employees Retirement Association<br/>
</td>
<td align="center">3.75<br/>
</td>
</tr>
<tr>
<td><a id="pl.203.25"></a><var>203.25</var><br/>
</td>
<td>public employees police and fire retirement plan<br/>
</td>
<td align="center">3.75<br/>
</td>
</tr>
<tr>
<td><a id="pl.203.26"></a><var>203.26</var><br/>
</td>
<td>local government correctional service retirement plan<br/>
</td>
<td align="center">3.75<br/>
</td>
</tr>
<tr>
<td><a id="pl.203.27"></a><var>203.27</var><br/>
</td>
<td>teachers retirement plan<br/>
</td>
<td align="center">3.75<br/>
</td>
</tr>
<tr>
<td><a id="pl.203.28"></a><var>203.28</var><br/>
</td>
<td>Duluth teachers retirement plan<br/>
</td>
<td align="center">4.503.50<br/>
</td>
</tr>
<tr>
<td><a id="pl.203.29"></a><var>203.29</var><br/>
</td>
<td>St. Paul teachers retirement plan<br/>
</td>
<td align="center">5.004.00<br/>
</td>
</tr>
</table><a id="pl.203.30"></a><var>203.30</var>    (d) The assumptions set forth in paragraphs (b) and (c) continue to apply, unless a <br/>
<a id="pl.203.31"></a><var>203.31</var>different salary assumption or a different payroll increase assumption:<br/>
<a id="pl.203.32"></a><var>203.32</var>    (1) has been proposed by the governing board of the applicable retirement plan;<br/>
<a id="pl.203.33"></a><var>203.33</var>    (2) is accompanied by the concurring recommendation of the actuary retained under <br/>
<a id="pl.203.34"></a><var>203.34</var>section 
         <statute_ref>356.214, subdivision 1</statute_ref>, if applicable, or by the approved actuary preparing the <br/>
<a id="pl.203.35"></a><var>203.35</var>most recent actuarial valuation report if section 
         <statute_ref>356.214</statute_ref> does not apply; and<br/>
<a id="pl.203.36"></a><var>203.36</var>    (3) has been approved or deemed approved under subdivision 18.<br/>
<a id="pl.203.37"></a><var>203.37</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.13.18.0"></a><a id="pl.203.38"></a><var>203.38</var>    Sec. 18. Minnesota Statutes 2012, section 356.47, subdivision 1, is amended to read:<br/>
<a id="pl.204.1"></a><var>204.1</var>    Subdivision 1. <b>Application.</b> (a) This section applies to the balance of annual <br/>
<a id="pl.204.2"></a><var>204.2</var>retirement annuities on the amount of retirement annuity reductions after reemployed <br/>
<a id="pl.204.3"></a><var>204.3</var>annuitant earnings limitations for retirement plans governed by section 
         <statute_ref>352.115, <br/>
<a id="pl.204.4"></a><var>204.4</var>subdivision 10
         </statute_ref>; 
         <statute_ref>353.37</statute_ref>; 
         <statute_ref>354.44, subdivision 5</statute_ref>; or 
         <statute_ref>354A.31, subdivision 3</statute_ref>.<br/>
<a id="pl.204.5"></a><var>204.5</var>(b) This section also applies to the balance of annual retirement annuities on <br/>
<a id="pl.204.6"></a><var>204.6</var>the amount of retirement annuity reductions under section 354A.31, subdivision 3, for <br/>
<a id="pl.204.7"></a><var>204.7</var>members of the Duluth Teachers Retirement Fund Association whose effective date of <br/>
<a id="pl.204.8"></a><var>204.8</var>retirement is before July 1, 2013.<br/>
<a id="pl.204.9"></a><var>204.9</var>(c) This section also applies to the balance of annual retirement annuities on <br/>
<a id="pl.204.10"></a><var>204.10</var>the amount of retirement annuity reductions under section 354A.31, subdivision 3, for <br/>
<a id="pl.204.11"></a><var>204.11</var>members of the St. Paul Teachers Retirement Fund Association whose effective date of <br/>
<a id="pl.204.12"></a><var>204.12</var>retirement is before July 1, 2013.<br/>
<a id="pl.204.13"></a><var>204.13</var><b>EFFECTIVE DATE.</b>This section is effective with respect to the Duluth Teachers <br/>
<a id="pl.204.14"></a><var>204.14</var>Retirement Fund Association on July 1, 2013, and is effective with respect to the St. Paul <br/>
<a id="pl.204.15"></a><var>204.15</var>Teachers Retirement Fund Association the day following final enactment.<br/>
<br/>
<a id="bill.13.19.0"></a><a id="pl.204.16"></a><var>204.16</var>    Sec. 19. Minnesota Statutes 2012, section 423A.02, subdivision 5, is amended to read:<br/>
<a id="pl.204.17"></a><var>204.17</var>    Subd. 5. <b>Termination of state aid programs.</b> The amortization state aid, <br/>
<a id="pl.204.18"></a><var>204.18</var>supplemental amortization state aid, and additional amortization state aid programs <br/>
<a id="pl.204.19"></a><var>204.19</var>terminate as of the December 31, next following the date of the actuarial valuation when <br/>
<a id="pl.204.20"></a><var>204.20</var>the assets of the St. Paul Teachers Retirement Fund Association equal the actuarial accrued <br/>
<a id="pl.204.21"></a><var>204.21</var>liability of that plan or December 31, 2009 June 30, 2037, whichever is later earlier.<br/>
<a id="pl.204.22"></a><var>204.22</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.13.20.0"></a><a id="pl.204.23"></a><var>204.23</var>    Sec. 20. <b>DULUTH TEACHERS RETIREMENT FUND ASSOCIATION BYLAW </b><br/>
<a id="pl.204.24"></a><var>204.24</var><b>AMENDMENT AUTHORIZATION.</b><br/>
<a id="pl.204.25"></a><var>204.25</var>Consistent with Minnesota Statutes, section 354A.12, subdivision 4, the Duluth <br/>
<a id="pl.204.26"></a><var>204.26</var>Teachers Retirement Fund Association is authorized to amend its articles of incorporation <br/>
<a id="pl.204.27"></a><var>204.27</var>or its bylaws to specify the revised contribution rates under sections 3 and 4, required <br/>
<a id="pl.204.28"></a><var>204.28</var>employee contributions on behalf of reemployed annuitants as specified under section 5, <br/>
<a id="pl.204.29"></a><var>204.29</var>and revised treatment of reemployed annuitant holding accounts under sections 12 and 18.<br/>
<a id="pl.204.30"></a><var>204.30</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2013.<br/>
<br/>
<a id="bill.13.21.0"></a><a id="pl.204.31"></a><var>204.31</var>    Sec. 21. <b>ST. PAUL TEACHERS RETIREMENT FUND ASSOCIATION BYLAW </b><br/>
<a id="pl.204.32"></a><var>204.32</var><b>AMENDMENT AUTHORIZATION.</b><br/>
<a id="pl.205.1"></a><var>205.1</var>Consistent with Minnesota Statutes, section 354A.12, subdivision 4, the St. Paul <br/>
<a id="pl.205.2"></a><var>205.2</var>Teachers Retirement Fund Association is authorized to amend its articles of incorporation <br/>
<a id="pl.205.3"></a><var>205.3</var>or its bylaws to apply the reduction factors stated in section 15 rather than the actuarial <br/>
<a id="pl.205.4"></a><var>205.4</var>reduction factors previously authorized.<br/>
<a id="pl.205.5"></a><var>205.5</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.13.22.0"></a><a id="pl.205.6"></a><var>205.6</var>    Sec. 22. <b>CONSOLIDATION STUDY.</b><br/>
<a id="pl.205.7"></a><var>205.7</var>The boards and executive directors of the Duluth Teachers Retirement Fund <br/>
<a id="pl.205.8"></a><var>205.8</var>Association, the St. Paul Teachers Retirement Fund Association, and the Teachers <br/>
<a id="pl.205.9"></a><var>205.9</var>Retirement Association shall jointly study and develop a report on the feasibility and <br/>
<a id="pl.205.10"></a><var>205.10</var>requirements necessary for the consolidation of the Duluth Teachers Retirement Fund <br/>
<a id="pl.205.11"></a><var>205.11</var>Association and the St. Paul Teachers Retirement Fund Association into the Teachers <br/>
<a id="pl.205.12"></a><var>205.12</var>Retirement Association. The report shall include detailed actuarial analysis that will define <br/>
<a id="pl.205.13"></a><var>205.13</var>the financial requirements for consolidating with the Teachers Retirement Association <br/>
<a id="pl.205.14"></a><var>205.14</var>in a manner, consistent with past practice, that assures that the assets of the Teachers <br/>
<a id="pl.205.15"></a><var>205.15</var>Retirement Association are protected, that the merging funds are fully funded, and that the <br/>
<a id="pl.205.16"></a><var>205.16</var>Teachers Retirement Association is not subsidizing the merged funds. The report shall <br/>
<a id="pl.205.17"></a><var>205.17</var>include implementation plans, proposed allocation of costs between the state and all <br/>
<a id="pl.205.18"></a><var>205.18</var>interested parties, time frames sufficient for an orderly transition, necessary management <br/>
<a id="pl.205.19"></a><var>205.19</var>and administrative changes, asset investment related considerations, and education and <br/>
<a id="pl.205.20"></a><var>205.20</var>communication plans to fully inform the executive branch, the legislative branch, and all <br/>
<a id="pl.205.21"></a><var>205.21</var>system stakeholders of financial requirements. The report shall include plans to treat <br/>
<a id="pl.205.22"></a><var>205.22</var>the employees of the Duluth Teachers Retirement Fund Association and the St. Paul <br/>
<a id="pl.205.23"></a><var>205.23</var>Teachers Retirement Fund Association in a manner comparable to that provided to the <br/>
<a id="pl.205.24"></a><var>205.24</var>former employees of the former Minneapolis Teachers Retirement Fund Association upon <br/>
<a id="pl.205.25"></a><var>205.25</var>consolidation into the Teachers Retirement Fund Association. The boards and executive <br/>
<a id="pl.205.26"></a><var>205.26</var>directors shall consult with the executive director of the State Board of Investment on <br/>
<a id="pl.205.27"></a><var>205.27</var>investment management transition issues. The report must be submitted to the Legislative <br/>
<a id="pl.205.28"></a><var>205.28</var>Commission on Pensions and Retirement by January 6, 2014.<br/>
<a id="pl.205.29"></a><var>205.29</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.13.23.0"></a><a id="pl.205.30"></a><var>205.30</var>    Sec. 23. <b> REPEALER.</b><br/>
<a id="pl.205.31"></a><var>205.31</var>Minnesota Statutes 2012, section 354A.27, subdivision 6, is repealed.<br/>
<br/>
<a id="bill.14.0.0"></a>

<a id="bill.14.1.0"></a><a id="pl.206.3"></a><var>206.3</var>    Section 1. Minnesota Statutes 2012, section 356.315, is amended by adding a <br/>
<a id="pl.206.4"></a><var>206.4</var>subdivision to read:<br/>
<a id="pl.206.5"></a><var>206.5</var>    Subd. 8a. <b>Judges plan.</b> The applicable benefit accrual rate is 2.5 percent.<br/>
<a id="pl.206.6"></a><var>206.6</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2013.<br/>
<br/>
<a id="bill.14.2.0"></a><a id="pl.206.7"></a><var>206.7</var>    Sec. 2. Minnesota Statutes 2012, section 356.415, subdivision 1, is amended to read:<br/>
<a id="pl.206.8"></a><var>206.8</var>    Subdivision 1. <b>Annual postretirement adjustments; generally.</b> (a) Except as <br/>
<a id="pl.206.9"></a><var>206.9</var>otherwise provided in subdivision 1a, 1b, 1c, 1d, or 1e, or 1f, retirement annuity, disability <br/>
<a id="pl.206.10"></a><var>206.10</var>benefit, or survivor benefit recipients of a covered retirement plan are entitled to a <br/>
<a id="pl.206.11"></a><var>206.11</var>postretirement adjustment annually on January 1, as follows:<br/>
<a id="pl.206.12"></a><var>206.12</var>(1) a postretirement increase of 2.5 percent must be applied each year, effective <br/>
<a id="pl.206.13"></a><var>206.13</var>January 1, to the monthly annuity or benefit of each annuitant or benefit recipient who has <br/>
<a id="pl.206.14"></a><var>206.14</var>been receiving an annuity or a benefit for at least 12 full months prior to the January 1 <br/>
<a id="pl.206.15"></a><var>206.15</var>increase; and<br/>
<a id="pl.206.16"></a><var>206.16</var>(2) for each annuitant or benefit recipient who has been receiving an annuity or a <br/>
<a id="pl.206.17"></a><var>206.17</var>benefit amount for at least one full month, an annual postretirement increase of 1/12 of 2.5 <br/>
<a id="pl.206.18"></a><var>206.18</var>percent for each month that the person has been receiving an annuity or benefit must be <br/>
<a id="pl.206.19"></a><var>206.19</var>applied, effective on January 1 following the calendar year in which the person has been <br/>
<a id="pl.206.20"></a><var>206.20</var>retired for less than 12 months.<br/>
<a id="pl.206.21"></a><var>206.21</var>(b) The increases provided by this subdivision commence on January 1, 2010.<br/>
<a id="pl.206.22"></a><var>206.22</var>(c) An increase in annuity or benefit payments under this section must be made <br/>
<a id="pl.206.23"></a><var>206.23</var>automatically unless written notice is filed by the annuitant or benefit recipient with the <br/>
<a id="pl.206.24"></a><var>206.24</var>executive director of the covered retirement plan requesting that the increase not be made.<br/>
<a id="pl.206.25"></a><var>206.25</var>(d) The retirement annuity payable to a person who retires before becoming eligible <br/>
<a id="pl.206.26"></a><var>206.26</var>for Social Security benefits and who has elected the optional payment as provided in <br/>
<a id="pl.206.27"></a><var>206.27</var>section 
         <statute_ref>353.29, subdivision 6</statute_ref>, must be treated as the sum of a period certain retirement <br/>
<a id="pl.206.28"></a><var>206.28</var>annuity and a life retirement annuity for the purposes of any postretirement adjustment. <br/>
<a id="pl.206.29"></a><var>206.29</var>The period certain retirement annuity plus the life retirement annuity must be the <br/>
<a id="pl.206.30"></a><var>206.30</var>annuity amount payable until age 62 for section 
         <statute_ref>353.29, subdivision 6</statute_ref>. A postretirement <br/>
<a id="pl.206.31"></a><var>206.31</var>adjustment granted on the period certain retirement annuity must terminate when the <br/>
<a id="pl.206.32"></a><var>206.32</var>period certain retirement annuity terminates.<br/>
<a id="pl.206.33"></a><var>206.33</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2013.<br/>
<br/>
<a id="bill.14.3.0"></a><a id="pl.207.1"></a><var>207.1</var>    Sec. 3. Minnesota Statutes 2012, section 356.415, is amended by adding a subdivision <br/>
<a id="pl.207.2"></a><var>207.2</var>to read:<br/>
<a id="pl.207.3"></a><var>207.3</var>    Subd. 1f. <b>Annual postretirement adjustments; Minnesota State Retirement </b><br/>
<a id="pl.207.4"></a><var>207.4</var><b>System judges retirement plan.</b> (a) The increases provided under this subdivision begin <br/>
<a id="pl.207.5"></a><var>207.5</var>on January 1, 2014, and are in lieu of increases under subdivision 1 or 1a for retirement <br/>
<a id="pl.207.6"></a><var>207.6</var>annuity, disability benefit, or survivor benefit recipients of the judges retirement plan.<br/>
<a id="pl.207.7"></a><var>207.7</var>(b) Retirement annuity, disability benefit, or survivor benefit recipients of the <br/>
<a id="pl.207.8"></a><var>207.8</var>judges retirement plan are entitled to a postretirement adjustment annually on January <br/>
<a id="pl.207.9"></a><var>207.9</var>1, as follows:<br/>
<a id="pl.207.10"></a><var>207.10</var>(1) a postretirement increase of 1.75 percent must be applied each year, effective <br/>
<a id="pl.207.11"></a><var>207.11</var>on January 1, to the monthly annuity or benefit of each annuitant or benefit recipient <br/>
<a id="pl.207.12"></a><var>207.12</var>who has been receiving an annuity or a benefit for at least 18 full months before the <br/>
<a id="pl.207.13"></a><var>207.13</var>January 1 increase; and<br/>
<a id="pl.207.14"></a><var>207.14</var>(2) for each annuitant or benefit recipient who has been receiving an annuity or a <br/>
<a id="pl.207.15"></a><var>207.15</var>benefit for at least six full months, an annual postretirement increase of 1/12 of 1.75 <br/>
<a id="pl.207.16"></a><var>207.16</var>percent for each month that the person has been receiving an annuity or benefit must be <br/>
<a id="pl.207.17"></a><var>207.17</var>applied, effective January 1, following the calendar year in which the person has been <br/>
<a id="pl.207.18"></a><var>207.18</var>retired for at least six months, but has been retired for less than 18 months.<br/>
<a id="pl.207.19"></a><var>207.19</var>(c) Increases under this subdivision terminate on December 31 of the calendar <br/>
<a id="pl.207.20"></a><var>207.20</var>year in which the actuarial valuation prepared by the approved actuary under sections <br/>
<a id="pl.207.21"></a><var>207.21</var>356.214 and 356.215 and the standards for actuarial work promulgated by the Legislative <br/>
<a id="pl.207.22"></a><var>207.22</var>Commission on Pensions and Retirement indicates that the market value of assets of the <br/>
<a id="pl.207.23"></a><var>207.23</var>judges retirement plan equals or exceeds 70 percent of the actuarial accrued liability of <br/>
<a id="pl.207.24"></a><var>207.24</var>the retirement plan. Increases under subdivision 1 or 1a, whichever is applicable, begin <br/>
<a id="pl.207.25"></a><var>207.25</var>on the January 1 next following that date.<br/>
<a id="pl.207.26"></a><var>207.26</var>(d) An increase in annuity or benefit payments under this subdivision must be made <br/>
<a id="pl.207.27"></a><var>207.27</var>automatically unless written notice is filed by the annuitant or benefit recipient with the <br/>
<a id="pl.207.28"></a><var>207.28</var>executive director of the applicable covered retirement plan requesting that the increase <br/>
<a id="pl.207.29"></a><var>207.29</var>not be made.<br/>
<a id="pl.207.30"></a><var>207.30</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2013.<br/>
<br/>
<a id="bill.14.4.0"></a><a id="pl.207.31"></a><var>207.31</var>    Sec. 4. Minnesota Statutes 2012, section 490.121, subdivision 21f, is amended to read:<br/>
<a id="pl.207.32"></a><var>207.32</var>    Subd. 21f. <b>Normal retirement date.</b> (a) For a judge in the tier I program, "normal <br/>
<a id="pl.207.33"></a><var>207.33</var>retirement date" means the date a the judge attains the age of 65.<br/>
<a id="pl.207.34"></a><var>207.34</var>(b) For a judge in the tier II program, normal retirement date means the date the <br/>
<a id="pl.207.35"></a><var>207.35</var>judge attains age 66.<br/>
<a id="pl.208.1"></a><var>208.1</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2013.<br/>
<br/>
<a id="bill.14.5.0"></a><a id="pl.208.2"></a><var>208.2</var>    Sec. 5. Minnesota Statutes 2012, section 490.121, subdivision 22, is amended to read:<br/>
<a id="pl.208.3"></a><var>208.3</var>    Subd. 22. <b>Service credit limit.</b> "Service credit limit" means, for a judge covered <br/>
<a id="pl.208.4"></a><var>208.4</var>by tier I, the greater of: (1) 24 years of allowable service under this chapter; or (2), for <br/>
<a id="pl.208.5"></a><var>208.5</var>judges a judge with allowable service rendered before July 1, 1980, the number of years of <br/>
<a id="pl.208.6"></a><var>208.6</var>allowable service under chapter 490, which, when multiplied by the percentage listed in <br/>
<a id="pl.208.7"></a><var>208.7</var>section 
         <statute_ref>356.315, subdivision 7</statute_ref> or 8, whichever is applicable to each year of service, equals <br/>
<a id="pl.208.8"></a><var>208.8</var>76.8. For a judge covered by tier II, there is no service credit limit.<br/>
<a id="pl.208.9"></a><var>208.9</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2013.<br/>
<br/>
<a id="bill.14.6.0"></a><a id="pl.208.10"></a><var>208.10</var>    Sec. 6. Minnesota Statutes 2012, section 490.121, is amended by adding a subdivision <br/>
<a id="pl.208.11"></a><var>208.11</var>to read:<br/>
<a id="pl.208.12"></a><var>208.12</var>    Subd. 25. <b>Tier I.</b> "Tier I" is the benefit program of the retirement plan with a <br/>
<a id="pl.208.13"></a><var>208.13</var>membership specified by section 490.1221, paragraph (b), and governed by sections <br/>
<a id="pl.208.14"></a><var>208.14</var>356.315, subdivisions 7 and 8; 356.415, subdivisions 1 and 1f; and 490.121 to 490.133, <br/>
<a id="pl.208.15"></a><var>208.15</var>except as modified in sections 356.315, subdivision 8a; 490.121, subdivision 21f, <br/>
<a id="pl.208.16"></a><var>208.16</var>paragraph (b); 490.1222; 490.123, subdivision 1a, paragraph (b); and 490.124, subdivision <br/>
<a id="pl.208.17"></a><var>208.17</var>1, paragraphs (c) and (d).<br/>
<a id="pl.208.18"></a><var>208.18</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2013.<br/>
<br/>
<a id="bill.14.7.0"></a><a id="pl.208.19"></a><var>208.19</var>    Sec. 7. Minnesota Statutes 2012, section 490.121, is amended by adding a subdivision <br/>
<a id="pl.208.20"></a><var>208.20</var>to read:<br/>
<a id="pl.208.21"></a><var>208.21</var>    Subd. 26. <b>Tier II.</b> "Tier II" is the benefit program of the retirement plan with a <br/>
<a id="pl.208.22"></a><var>208.22</var>membership specified by section 490.1221, paragraph (c), and governed by sections <br/>
<a id="pl.208.23"></a><var>208.23</var>356.315, subdivision 8a; 356.415, subdivisions 1 and 1f; 490.121 to 490.133, as modified <br/>
<a id="pl.208.24"></a><var>208.24</var>in section 490.121, subdivision 21f, paragraph (b); 490.1222; 490.123, subdivision 1a, <br/>
<a id="pl.208.25"></a><var>208.25</var>paragraph (b); and 490.124, subdivision 1, paragraphs (c) and (d).<br/>
<a id="pl.208.26"></a><var>208.26</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2013.<br/>
<br/>
<a id="bill.14.8.0"></a><a id="pl.208.27"></a><var>208.27</var>    Sec. 8. <b>[490.1221] JUDGES PLAN PROGRAMS.</b><br/>
<a id="pl.208.28"></a><var>208.28</var>(a) Members of the judges retirement plan are members of either the tier I or tier II <br/>
<a id="pl.208.29"></a><var>208.29</var>program.<br/>
<a id="pl.208.30"></a><var>208.30</var>(b) A tier I program judge is a person who was first appointed or elected as a judge <br/>
<a id="pl.208.31"></a><var>208.31</var>before July 1, 2013, who was not eligible for the tier II program because the judge had <br/>
<a id="pl.209.1"></a><var>209.1</var>five or more years of allowable service on or before December 30, 2013, or did not elect <br/>
<a id="pl.209.2"></a><var>209.2</var>that program.<br/>
<a id="pl.209.3"></a><var>209.3</var>(c) A tier II program judge is a person who:<br/>
<a id="pl.209.4"></a><var>209.4</var>(1) was first appointed or elected as a judge after June 30, 2013; or<br/>
<a id="pl.209.5"></a><var>209.5</var>(2) was first appointed or elected as a judge before July 1, 2013, had less than five <br/>
<a id="pl.209.6"></a><var>209.6</var>years of allowable service on or before December 30, 2013, and made an election under <br/>
<a id="pl.209.7"></a><var>209.7</var>section 14 to be in the tier II program.<br/>
<a id="pl.209.8"></a><var>209.8</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2013.<br/>
<br/>
<a id="bill.14.9.0"></a><a id="pl.209.9"></a><var>209.9</var>    Sec. 9. <b>[490.1222] APPLICATION OF SERVICE CREDIT LIMIT.</b><br/>
<a id="pl.209.10"></a><var>209.10</var>The service credit limit specified in section 490.121, subdivision 22, does not apply <br/>
<a id="pl.209.11"></a><var>209.11</var>to a judge in the tier II program.<br/>
<a id="pl.209.12"></a><var>209.12</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2013.<br/>
<br/>
<a id="bill.14.10.0"></a><a id="pl.209.13"></a><var>209.13</var>    Sec. 10. Minnesota Statutes 2012, section 490.123, subdivision 1a, is amended to read:<br/>
<a id="pl.209.14"></a><var>209.14</var>    Subd. 1a. <b>Member contribution rates.</b>  (a) A judge who is covered by the federal <br/>
<a id="pl.209.15"></a><var>209.15</var>Old Age, Survivors, Disability, and Health Insurance Program and in the tier I program <br/>
<a id="pl.209.16"></a><var>209.16</var>whose service does not exceed the service credit limit in section 
         <statute_ref>490.121, subdivision 22</statute_ref>, <br/>
<a id="pl.209.17"></a><var>209.17</var>shall contribute to the fund from each salary payment a sum equal to 8.00 9.00 percent <br/>
<a id="pl.209.18"></a><var>209.18</var>of salary.<br/>
<a id="pl.209.19"></a><var>209.19</var>(b) A judge in the tier II program shall contribute to the fund from each salary <br/>
<a id="pl.209.20"></a><var>209.20</var>payment a sum equal to 7.00 percent of salary.<br/>
<a id="pl.209.21"></a><var>209.21</var>    (b) The contribution (c) Contributions under this subdivision is are payable by salary <br/>
<a id="pl.209.22"></a><var>209.22</var>deduction. The deduction must be made by the state court administrator under section <br/>
<statute_ref><a id="pl.209.23"></a><var>209.23</var>352.04
         </statute_ref>, subdivisions 4, 5, and 8.<br/>
<a id="pl.209.24"></a><var>209.24</var><b>EFFECTIVE DATE.</b>This section is effective beginning on the first day of the first <br/>
<a id="pl.209.25"></a><var>209.25</var>full payroll period following an increase in judicial salaries of at least one percent due to <br/>
<a id="pl.209.26"></a><var>209.26</var>action by the legislature during calendar year 2013 or later.<br/>
<br/>
<a id="bill.14.11.0"></a><a id="pl.209.27"></a><var>209.27</var>    Sec. 11. Minnesota Statutes 2012, section 490.123, subdivision 1b, is amended to read:<br/>
<a id="pl.209.28"></a><var>209.28</var>    Subd. 1b. <b>Employer contribution rate.</b> (a) The employer contribution rate to the <br/>
<a id="pl.209.29"></a><var>209.29</var>fund on behalf of a judge is 20.5 22.5 percent of salary. The employer obligation continues <br/>
<a id="pl.209.30"></a><var>209.30</var>after a judge exceeds the service credit limit in section 
         <statute_ref>490.121</statute_ref>, subdivision 22.<br/>
<a id="pl.209.31"></a><var>209.31</var>    (b) The employer contribution must be paid by the state court administrator. The <br/>
<a id="pl.209.32"></a><var>209.32</var>employer contribution is payable at the same time as member contributions are made <br/>
<a id="pl.210.1"></a><var>210.1</var>under subdivision 1a or as employee contributions are made to the unclassified program <br/>
<a id="pl.210.2"></a><var>210.2</var>governed by chapter 352D for judges whose service exceeds the limit in section 
         <statute_ref>490.121</statute_ref>, <br/>
<a id="pl.210.3"></a><var>210.3</var>subdivision 22, are remitted.<br/>
<a id="pl.210.4"></a><var>210.4</var><b>EFFECTIVE DATE.</b>This section is effective the first day of the first full payroll <br/>
<a id="pl.210.5"></a><var>210.5</var>period after June 30, 2013.<br/>
<br/>
<a id="bill.14.12.0"></a><a id="pl.210.6"></a><var>210.6</var>    Sec. 12. Minnesota Statutes 2012, section 490.124, subdivision 1, is amended to read:<br/>
<a id="pl.210.7"></a><var>210.7</var>    Subdivision 1. <b>Basic</b><b> Retirement annuity.</b> (a) Except as qualified hereinafter from <br/>
<a id="pl.210.8"></a><var>210.8</var>and after the mandatory retirement date, the normal retirement date, the early retirement <br/>
<a id="pl.210.9"></a><var>210.9</var>date, or one year from the disability retirement date, as the case may be, a retiring judge is <br/>
<a id="pl.210.10"></a><var>210.10</var>eligible to receive a retirement annuity from the judges' retirement fund.<br/>
<a id="pl.210.11"></a><var>210.11</var>    (b) For a tier I program judge, the retirement annuity is an amount equal to: <br/>
<a id="pl.210.12"></a><var>210.12</var>    (1) the percent specified in section 
         <statute_ref>356.315, subdivision 7</statute_ref>, multiplied by the judge's <br/>
<a id="pl.210.13"></a><var>210.13</var>final average compensation with that result then multiplied by the number of years and <br/>
<a id="pl.210.14"></a><var>210.14</var>fractions of years of allowable service rendered before July 1, 1980; plus <br/>
<a id="pl.210.15"></a><var>210.15</var>    (2) the percent specified in section 
         <statute_ref>356.315, subdivision 8</statute_ref>, multiplied by the judge's <br/>
<a id="pl.210.16"></a><var>210.16</var>final average compensation with that result then multiplied by the number of years and <br/>
<a id="pl.210.17"></a><var>210.17</var>fractions of years of allowable service rendered after June 30, 1980.<br/>
<a id="pl.210.18"></a><var>210.18</var>(c) For a tier II program judge who was first appointed or elected as a judge before <br/>
<a id="pl.210.19"></a><var>210.19</var>July 1, 2013, the retirement annuity is an amount equal to:<br/>
<a id="pl.210.20"></a><var>210.20</var>(1) the percent specified in section 356.315, subdivision 8, multiplied by the judge's <br/>
<a id="pl.210.21"></a><var>210.21</var>final average compensation with that result then multiplied by the number of years and <br/>
<a id="pl.210.22"></a><var>210.22</var>fractions of years of allowable service rendered before January 1, 2014; plus<br/>
<a id="pl.210.23"></a><var>210.23</var>(2) the percentage specified in section 356.315, subdivision 8a, multiplied by the <br/>
<a id="pl.210.24"></a><var>210.24</var>judge's final average compensation with that result then multiplied by the number of years <br/>
<a id="pl.210.25"></a><var>210.25</var>and fractions of years of allowable service rendered after December 31, 2013.<br/>
<a id="pl.210.26"></a><var>210.26</var>(d) For a tier II program judge who was first appointed or elected as a judge after <br/>
<a id="pl.210.27"></a><var>210.27</var>June 30, 2013, the retirement annuity is an amount equal to the percent specified in section <br/>
<a id="pl.210.28"></a><var>210.28</var>356.315, subdivision 8a, multiplied by the judge's final average compensation with that <br/>
<a id="pl.210.29"></a><var>210.29</var>result then multiplied by the number of years and fractions of years of allowable service.<br/>
<a id="pl.210.30"></a><var>210.30</var>    (c) (e) For a judge in the tier I program, service that exceeds the service credit limit in <br/>
<a id="pl.210.31"></a><var>210.31</var>section 
         <statute_ref>490.121, subdivision 22</statute_ref>, must be excluded in calculating the retirement annuity, but <br/>
<a id="pl.210.32"></a><var>210.32</var>the compensation earned by the judge during this period of judicial service must be used in <br/>
<a id="pl.210.33"></a><var>210.33</var>determining a judge's final average compensation and calculating the retirement annuity.<br/>
<a id="pl.210.34"></a><var>210.34</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2013.<br/>
<br/>
<a id="bill.14.13.0"></a><a id="pl.211.1"></a><var>211.1</var>    Sec. 13. <b>MEMBER CONTRIBUTION INCREASE CONDITION.</b><br/>
<a id="pl.211.2"></a><var>211.2</var>Any increase in judicial salaries enacted by the legislature during calendar year 2013 <br/>
<a id="pl.211.3"></a><var>211.3</var>or later is not applicable to a judge in the tier I program if the member contribution rate <br/>
<a id="pl.211.4"></a><var>211.4</var>applicable to that judge in the tier I program under Minnesota Statutes, section 490.123, <br/>
<a id="pl.211.5"></a><var>211.5</var>subdivision 1a, is not deducted from the salary of the judge.<br/>
<a id="pl.211.6"></a><var>211.6</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.14.14.0"></a><a id="pl.211.7"></a><var>211.7</var>    Sec. 14. <b>TIER II PROGRAM ELECTION; PRE-JULY 1, 2013, JUDGES.</b><br/>
<a id="pl.211.8"></a><var>211.8</var>    Subdivision 1. <b>Authority.</b> A person who was first appointed or elected as a judge <br/>
<a id="pl.211.9"></a><var>211.9</var>covered by the Minnesota State Retirement System judges retirement plan before July 1, <br/>
<a id="pl.211.10"></a><var>211.10</var>2013, is eligible to elect treatment as a tier II program judge if the judge has less than five <br/>
<a id="pl.211.11"></a><var>211.11</var>years of allowable service on the date the judge makes a valid election under subdivision 2.<br/>
<a id="pl.211.12"></a><var>211.12</var>    Subd. 2. <b>Election procedure.</b> An eligible judge under subdivision 1 may elect to <br/>
<a id="pl.211.13"></a><var>211.13</var>be subject to the provisions of Minnesota Statutes, chapter 490, applicable to a tier II <br/>
<a id="pl.211.14"></a><var>211.14</var>program judge rather than the tier I program by electing that treatment in writing before <br/>
<a id="pl.211.15"></a><var>211.15</var>January 1, 2014, on a form provided by the executive director of the Minnesota State <br/>
<a id="pl.211.16"></a><var>211.16</var>Retirement System.<br/>
<a id="pl.211.17"></a><var>211.17</var>    Subd. 3. <b>Effect of election.</b> (a) The election is irrevocable.<br/>
<a id="pl.211.18"></a><var>211.18</var>(b) An eligible judge who fails to make an election remains in the tier I program.<br/>
<a id="pl.211.19"></a><var>211.19</var>(c) If the tier II program is elected by an eligible judge, member contributions based on <br/>
<a id="pl.211.20"></a><var>211.20</var>revised member contribution rates under Minnesota Statutes, section 490.123, subdivision <br/>
<a id="pl.211.21"></a><var>211.21</var>1a, begin on the first day of the first full pay period occurring after January 1, 2014.<br/>
<a id="pl.211.22"></a><var>211.22</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2013.<br/>
<br/>
<a id="bill.15.0.0"></a>

<a id="bill.15.1.0"></a><a id="pl.211.25"></a><var>211.25</var>    Section 1. Minnesota Statutes 2012, section 356.91, is amended to read:<br/>
<a id="pl.211.26"></a><var>211.26</var><b>356.91 VOLUNTARY MEMBERSHIP DUES DEDUCTION.</b><br/>
<a id="pl.211.27"></a><var>211.27</var>    (a) Upon written authorization of a person receiving an annuity from a public <br/>
<a id="pl.211.28"></a><var>211.28</var>pension fund administered by the Minnesota State Retirement System or the Public <br/>
<a id="pl.211.29"></a><var>211.29</var>Employees Retirement Association, the executive director of the public pension fund may<br/>
<a id="pl.211.30"></a><var>211.30</var> shall deduct from the retirement annuity an amount requested by the annuitant to be paid <br/>
<a id="pl.211.31"></a><var>211.31</var>as membership dues or other payments to any labor organization that is an exclusive <br/>
<a id="pl.211.32"></a><var>211.32</var>bargaining agent representing public employees or an organization representing retired <br/>
<a id="pl.212.1"></a><var>212.1</var>public employees of which the annuitant is a member and shall, on a monthly basis, pay <br/>
<a id="pl.212.2"></a><var>212.2</var>the amount to the organization so designated by the annuitant.<br/>
<a id="pl.212.3"></a><var>212.3</var>    (b) A pension fund and the plan fiduciaries which authorize or administer deductions <br/>
<a id="pl.212.4"></a><var>212.4</var>of dues payments under paragraph (a) are not liable for failure to properly deduct or transmit <br/>
<a id="pl.212.5"></a><var>212.5</var>the dues amounts, provided that the fund and the fiduciaries have acted in good faith.<br/>
<a id="pl.212.6"></a><var>212.6</var>    (c) The deductions under paragraph (a) may occur no more frequently than two times <br/>
<a id="pl.212.7"></a><var>212.7</var>per year and may not be used for political purposes. Any labor organization that is an <br/>
<a id="pl.212.8"></a><var>212.8</var>exclusive bargaining agent representing public employees or an organization representing <br/>
<a id="pl.212.9"></a><var>212.9</var>retired public employees may conduct blind mailings to the annuitants of a retirement <br/>
<a id="pl.212.10"></a><var>212.10</var>system specified in paragraph (a) by requesting that the retirement system mail voluntary <br/>
<a id="pl.212.11"></a><var>212.11</var>membership information and dues deduction cards to annuitants. Such mailings shall not <br/>
<a id="pl.212.12"></a><var>212.12</var>be for the purpose of supporting or opposing any candidate, political party, or ballot <br/>
<a id="pl.212.13"></a><var>212.13</var>measure. The organization requesting the blind mailing shall pay all costs associated <br/>
<a id="pl.212.14"></a><var>212.14</var>with these mailings, including but not limited to copying, labeling, mailing, postage, and <br/>
<a id="pl.212.15"></a><var>212.15</var>record keeping. In lieu of administering a blind mailing in-house, a retirement system <br/>
<a id="pl.212.16"></a><var>212.16</var>may transmit annuitant data necessary for conducting a blind mailing to a mail center <br/>
<a id="pl.212.17"></a><var>212.17</var>pursuant to a secure data share agreement with the mail center which provides that neither <br/>
<a id="pl.212.18"></a><var>212.18</var>the organization nor any other entity shall have direct access to the data transmitted by <br/>
<a id="pl.212.19"></a><var>212.19</var>the retirement system. The retirement system shall have no obligation to approve or <br/>
<a id="pl.212.20"></a><var>212.20</var>disapprove, or otherwise be responsible for, the content of the mailings. No organization <br/>
<a id="pl.212.21"></a><var>212.21</var>shall conduct more than two blind mailings per calendar year.<br/>
<a id="pl.212.22"></a><var>212.22</var>    (d) Any labor organization specified in paragraph (a) shall reimburse the public <br/>
<a id="pl.212.23"></a><var>212.23</var>pension fund for the administrative expense of withholding premium amounts.<br/>
<br/>
<a id="bill.16.0.0"></a>

<a id="bill.16.1.0"></a><a id="pl.212.26"></a><var>212.26</var>    Section 1. <b>JUDICIARY.</b><br/>
<a id="pl.212.27"></a><var>212.27</var>(a) $22,000 in fiscal year 2014 and $22,000 in fiscal year 2015 are appropriated <br/>
<a id="pl.212.28"></a><var>212.28</var>to the Supreme Court from the general fund for the increased employer contribution <br/>
<a id="pl.212.29"></a><var>212.29</var>in article 14, section 11.<br/>
<a id="pl.212.30"></a><var>212.30</var>(b) $55,000 in fiscal year 2014 and $57,000 in fiscal year 2015 are appropriated <br/>
<a id="pl.212.31"></a><var>212.31</var>to the court of appeals from the general fund for the increased employer contribution <br/>
<a id="pl.212.32"></a><var>212.32</var>in article 14, section 11.<br/>
<a id="pl.212.33"></a><var>212.33</var>(c) $778,000 in fiscal year 2014 and $809,000 in fiscal year 2015 are appropriated <br/>
<a id="pl.212.34"></a><var>212.34</var>to the district courts from the general fund for the increased employer contribution in <br/>
<a id="pl.212.35"></a><var>212.35</var>article 14, section 11.<br/>
<br/>
<a id="bill.16.2.0"></a><a id="pl.213.1"></a><var>213.1</var>    Sec. 2. <b>PUBLIC SAFETY.</b><br/>
<a id="pl.213.2"></a><var>213.2</var>The following amounts are appropriated to the Department of Public Safety for the <br/>
<a id="pl.213.3"></a><var>213.3</var>increased employer contribution in article 9, section 3:<br/>
<a id="pl.213.4"></a><var>213.4</var>(1) $95,000 in fiscal year 2015 is appropriated from the general fund. The general <br/>
<a id="pl.213.5"></a><var>213.5</var>fund base for fiscal year 2017 is increased by $94,000.<br/>
<a id="pl.213.6"></a><var>213.6</var>(2) $546,000 in fiscal year 2015 is appropriated from the trunk highway fund.  The <br/>
<a id="pl.213.7"></a><var>213.7</var>trunk highway fund base for fiscal year 2017 is increased by $547,000.<br/>
<a id="pl.213.8"></a><var>213.8</var>(3) $8,000 in fiscal year 2015 is appropriated from the highway user tax distribution <br/>
<a id="pl.213.9"></a><var>213.9</var>fund.  The highway user tax distribution fund base for fiscal year 2017 is increased <br/>
<a id="pl.213.10"></a><var>213.10</var>by $8,000.<br/>