1.1 	A bill for an act
1.2 	relating to retirement; various Minnesota public employee retirement plans; 
1.3 	allowing MSRS-General deferred members to vote in board elections; 
1.4 	continuing Stevens County Housing and Redevelopment Authority employees 
1.5 	in PERA-General; excluding fixed-route bus drivers employed by the St. 
1.6 	Cloud Metropolitan Transit Commission from PERA-General coverage; 
1.7 	increasing member and employer contribution rates for certain retirement 
1.8 	plans; providing for the consolidation of the Duluth Teachers Retirement Fund 
1.9 	Association retirement plan and fund into the statewide Teachers Retirement 
1.10 	Association; revising an amortization target date, creating new state aid 
1.11 	programs; appropriating money; extending a MnSCU early retirement incentive 
1.12 	program; increasing the limit for certain reemployed MnSCU retirees; extending 
1.13 	the applicability of a second chance at tenure retirement coverage election 
1.14 	opportunity for MnSCU faculty members; revising investment authority for 
1.15 	various defined contribution plans or programs; authorizing the State Board of 
1.16 	Investment to revise, remove, or create investment options for the Minnesota 
1.17 	supplemental investment fund; expanding permissible investments under the 
1.18 	unclassified state employees retirement program, the public employees defined 
1.19 	contribution plan, the deferred compensation program, and the health care savings 
1.20 	plan; revising salary reporting requirements; clarifying retirement provision 
1.21 	applications to sheriffs; revising local government postretirement option program 
1.22 	requirements and extending expiration date; clarifying future postretirement 
1.23 	adjustment rates for former members of the former Minneapolis Firefighters 
1.24 	Relief Association and the former Minneapolis Police Relief Association; making 
1.25 	technical changes to amortization state aid and supplemental state aid; clarifying 
1.26 	the eligibility of independent nonprofit firefighting corporations to receive police 
1.27 	and fire supplemental retirement state aid; implementing the recommendations 
1.28 	of the 2013-2014 state auditor volunteer fire working group; modifying the 
1.29 	disability benefit application deadline for certain former Wadena County sheriff's 
1.30 	deputies; authorizing city of Duluth and Duluth Airports Authority employee 
1.31 	salary-supplement payments coverage following Court of Appeals decision; 
1.32 	specifying interest rate for computing joint and survivor annuities; revising 
1.33 	postretirement adjustment triggers; revising reemployed annuitant withholding in 
1.34 	certain divorce situations; clarifying medical advisor and resumption of teaching 
1.35 	provisions; specifying explicit postretirement adjustment assumptions; allowing 
1.36 	volunteer firefighter relief associations to pay state fire chiefs association dues 
1.37 	from the special fund; authorizing MnSCU employee to elect TRA coverage and 
1.38 	transfer past service from IRAP to TRA; clarifying the applicability of 2013 
1.39 	postretirement adjustment modifications to certain county sheriffs; ratifying or 
2.1 	grandparenting MSRS-Correctional plan coverage for Department of Human 
2.2 	Services employees; allowing various service credit purchases; requiring a 
2.3 	PERA report on certain survivor benefit amounts;amending Minnesota Statutes 
2.4 	2012, sections 3A.01, subdivision 1a; 11A.17, subdivisions 1, 9; 13.632, 
2.5 	subdivision 1; 122A.18, subdivision 7a; 136F.481; 352.01, subdivisions 2b, 
2.6 	12; 352.03, subdivision 1, by adding a subdivision; 352.04, subdivisions 2, 
2.7 	3; 352.115, subdivisions 8, 10; 352.1155, subdivisions 1, 4; 352.90; 352.91, 
2.8 	subdivisions 1, 2, 3c, 3d, 3e, 3f, by adding a subdivision; 352.92, subdivisions 
2.9 	1, 2; 352.965, subdivision 4, by adding subdivisions; 352.98, subdivision 2; 
2.10 	352B.08, subdivision 3; 352D.04, by adding subdivisions; 353.01, subdivision 
2.11 	14; 353.27, subdivisions 2, 3, 3b, 4, by adding a subdivision; 353.30, subdivision 
2.12 	3; 353.37, by adding a subdivision; 353.371, by adding a subdivision; 353.6511, 
2.13 	subdivision 7; 353.6512, subdivision 7; 353D.05, subdivision 1, by adding a 
2.14 	subdivision; 354.05, subdivisions 2, 7, 13; 354.42, subdivisions 2, 3; 354.44, 
2.15 	subdivision 5; 354.445; 354.48, subdivision 6a; 354A.011, subdivisions 11, 15a, 
2.16 	27; 354A.021, subdivision 1; 354A.092; 354A.093, subdivision 1; 354A.096; 
2.17 	354A.12, subdivision 2; 354A.29, subdivision 8; 354A.31, subdivisions 1, 
2.18 	3a; 354A.32, subdivision 1; 354A.35, subdivision 1; 354A.37, subdivisions 
2.19 	3, 4; 354A.39; 354A.41; 354B.21, subdivisions 2, 3a; 355.01, subdivision 
2.20 	2c; 356.215, subdivision 11; 356.24, subdivision 1; 356.302, subdivision 
2.21 	7; 356.303, subdivision 4; 356.32, subdivision 2; 356.415, subdivision 1d; 
2.22 	356.42, subdivision 3; 356.465, subdivision 3; 356.47, subdivision 3; 356.635, 
2.23 	subdivision 6; 356.99, subdivision 1; 356A.06, subdivisions 7, 7a; 424A.015, 
2.24 	by adding a subdivision; 424A.016, subdivisions 4, 7; 424A.05, subdivision 
2.25 	3; 424A.08; 424B.12; 490.121, subdivision 2a; Minnesota Statutes 2013 
2.26 	Supplement, sections 69.051, subdivisions 1a, 3; 352.01, subdivision 2a; 352.03, 
2.27 	subdivision 4; 353.01, subdivisions 2a, 2b; 353.651, subdivision 4; 354.436; 
2.28 	354.44, subdivision 6; 354A.12, subdivisions 1, 2a, 3a, 3c; 354A.27, subdivision 
2.29 	6a; 356.20, subdivision 2; 356.214, subdivision 1; 356.215, subdivision 8; 
2.30 	356.219, subdivision 8; 356.30, subdivision 3; 356.401, subdivision 3; 356.415, 
2.31 	subdivisions 1a, 1c, 1e, 1f; 356.91; 363A.36, subdivision 1; 423A.02, subdivision 
2.32 	3; 423A.022, subdivisions 2, 3; 424A.016, subdivision 6; 424A.02, subdivisions 
2.33 	3, 7; 424A.092, subdivision 6; 424A.093, subdivisions 2, 6; 424A.094, 
2.34 	subdivision 2; 424A.10, subdivision 2; Laws 2009, chapter 169, article 5, 
2.35 	section 2, as amended; article 6, section 1; proposing coding for new law in 
2.36 	Minnesota Statutes, chapters 354; 354A; 356; repealing Minnesota Statutes 2012, 
2.37 	sections 11A.17, subdivision 4; 352.965, subdivision 5; 352D.04, subdivision 1; 
2.38 	353D.05, subdivision 2; 354A.021, subdivision 5; 354A.108; 354A.24; 354A.27, 
2.39 	subdivision 5; 356.415, subdivision 3; Minnesota Statutes 2013 Supplement, 
2.40 	sections 354A.27, subdivisions 6a, 7; 354A.31, subdivision 4a.
2.41 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

2.42 	ARTICLE 1
2.43 	RETIREMENT PLAN MEMBERSHIP INCLUSIONS AND EXCLUSIONS

2.44 	Section 1. Minnesota Statutes 2013 Supplement, section 352.01, subdivision 2a, 
2.45 	is amended to read:
2.46 		Subd. 2a.Included employees. (a) "State employee" includes:
2.47 	(1) employees of the Minnesota Historical Society;
2.48 	(2) employees of the State Horticultural Society;
2.49 	(3) employees of the Minnesota Crop Improvement Association;
3.1 	(4) employees of the adjutant general whose salaries are paid from federal funds and 
3.2 	who are not covered by any federal civilian employees retirement system;
3.3 	(5) employees of the Minnesota State Colleges and Universities who are employed 
3.4 	under the university or college activities program;
3.5 	(6) currently contributing employees covered by the system who are temporarily 
3.6 	employed by the legislature during a legislative session or any currently contributing 
3.7 	employee employed for any special service as defined in subdivision 2b, clause (8);
3.8 	(7) employees of the legislature who are appointed without a limit on the duration 
3.9 	of their employment and persons employed or designated by the legislature or by a 
3.10 	legislative committee or commission or other competent authority to conduct a special 
3.11 	inquiry, investigation, examination, or installation;
3.12 	(8) trainees who are employed on a full-time established training program 
3.13 	performing the duties of the classified position for which they will be eligible to receive 
3.14 	immediate appointment at the completion of the training period;
3.15 	(9) employees of the Minnesota Safety Council;
3.16 	(10) any employees who are on authorized leave of absence from the Transit 
3.17 	Operating Division of the former Metropolitan Transit Commission and who are employed 
3.18 	by the labor organization which is the exclusive bargaining agent representing employees 
3.19 	of the Transit Operating Division;
3.20 	(11) employees of the Metropolitan Council, Metropolitan Parks and Open Space 
3.21 	Commission, Metropolitan Sports Facilities Commission, or Metropolitan Mosquito 
3.22 	Control Commission unless excluded under subdivision 2b or are covered by another 
3.23 	public pension fund or plan under section 473.415, subdivision 3;
3.24 	(12) judges of the Tax Court;
3.25 	(13) personnel who were employed on June 30, 1992, by the University of 
3.26 	Minnesota in the management, operation, or maintenance of its heating plant facilities, 
3.27 	whose employment transfers to an employer assuming operation of the heating plant 
3.28 	facilities, so long as the person is employed at the University of Minnesota heating plant 
3.29 	by that employer or by its successor organization;
3.30 	(14) personnel who are employed as seasonal employees in the classified or 
3.31 	unclassified service;
3.32 	(15) persons who are employed by the Department of Commerce as a peace officer 
3.33 	in the Commerce Fraud Bureau under section 45.0135 who have attained the mandatory 
3.34 	retirement age specified in section 43A.34, subdivision 4;
3.35 	(16) employees of the University of Minnesota unless excluded under subdivision 
3.36 	2b, clause (3);
4.1 	(17) employees of the Middle Management Association whose employment began 
4.2 	after July 1, 2007, and to whom section 352.029 does not apply;
4.3 	(18) employees of the Minnesota Government Engineers Council to whom section 
4.4 	352.029 does not apply;
4.5 	(19) employees of the Minnesota Sports Facilities Authority; and
4.6 	(20) employees of the Minnesota Association of Professional Employees.;
4.7 	(21) employees of the Minnesota State Retirement System;
4.8 	(22) employees of the State Agricultural Society;
4.9 	(23) employees of the Gillette Children's Hospital Board who were employed in the 
4.10 	state unclassified service at the former Gillette Children's Hospital on March 28, 1974; and
4.11 	(24) if approved for coverage by the Board of Directors of Conservation Corps 
4.12 	Minnesota, employees of Conservation Corps Minnesota so employed on June 30, 2003.
4.13 	(b) Employees specified in paragraph (a), clause (13), are included employees under 
4.14 	paragraph (a) if employer and employee contributions are made in a timely manner in the 
4.15 	amounts required by section 352.04. Employee contributions must be deducted from 
4.16 	salary. Employer contributions are the sole obligation of the employer assuming operation 
4.17 	of the University of Minnesota heating plant facilities or any successor organizations to 
4.18 	that employer.

4.19 	EFFECTIVE DATE. This section is effective July 1, 2014.

4.20 	Sec. 2. Minnesota Statutes 2012, section 352.01, subdivision 2b, is amended to read:
4.21 		Subd. 2b.Excluded employees. "State employee" does not include:
4.22 	(1) persons who are:
4.23 	(i) students who are employed by the University of Minnesota, or within the 
4.24 	Minnesota State Colleges and Universities system, unless approved for coverage by 
4.25 	the Board of Regents of the University of Minnesota or the Board of Trustees of the 
4.26 	Minnesota State Colleges and Universities, whichever is applicable applies;
4.27 	(ii) employed as interns for a period not to exceed six months unless included under 
4.28 	subdivision 2a, paragraph (a), clause (8);
4.29 	(iii) employed as trainee employees unless included under subdivision 2a, paragraph 
4.30 	(a), clause (8); or
4.31 	(iv) employed in the student worker classification as designated by Minnesota 
4.32 	Management and Budget;
4.33 	(2) employees who are:
4.34 	(i) eligible for membership in the state Teachers Retirement Association, except 
4.35 	employeesunless the person is an employee of the Department of Education who have 
5.1 	chosen or may chooseelected to be covered by the general state employees retirement plan 
5.2 	of the Minnesota State Retirement System instead of the Teachers Retirement Association;
5.3 	(ii) employees of the state who, in any year, were credited with 12 months of 
5.4 	allowable service as a public school teacher and, as such, are members of a retirement plan 
5.5 	governed by chapter 354 or 354A unless the employment is incidental employment as a 
5.6 	state employee that is not covered by a retirement plan governed by chapter 354 or 354A;
5.7 	(iii) employees of the state who are employed by the Board of Trustees of the 
5.8 	Minnesota State Colleges and Universities in an unclassified position that is listed in 
5.9 	section 43A.08, subdivision 1, clause (9);
5.10 	(iv) persons employed by the Board of Trustees of the Minnesota State Colleges and 
5.11 	Universities who elected retirement coverage other than by the general state employees 
5.12 	retirement plan of the Minnesota State Retirement System under Minnesota Statutes 
5.13 	1994, section 136C.75;
5.14 	(v) officers or enlisted personnel in the National Guard or in the naval militia who 
5.15 	are assigned to permanent peacetime duty and who are or are required to be members of a 
5.16 	federal retirement system under federal law;
5.17 	(vi) persons employed by the Department of Military Affairs as full-time firefighters 
5.18 	and who, as such, are members of the public employees police and fire retirement plan;
5.19 	(vii) members of the State Patrol retirement plan under section 352B.011, 
5.20 	subdivision 10;
5.21 	(viii) off-duty police officers while employed by the Metropolitan Council and 
5.22 	persons employed as full-time police officers by the Metropolitan Council and who, as 
5.23 	such, are members of the public employees police and fire retirement plan; and
5.24 	(ix) employees of the state who have elected to transfer account balances derived 
5.25 	from state service to the unclassified state employees retirement program under section 
5.26 	352D.02, subdivision 1d;
5.27 	(3) employees of the University of Minnesota who are excluded from coverage by 
5.28 	action of the Board of Regents;
5.29 	(4) officers and enlisted personnel in the National Guard and the naval militia who 
5.30 	are assigned to permanent peacetime duty and who under federal law are or are required to 
5.31 	be members of a federal retirement system;
5.32 	(5)(4) election officers judges and persons who are employed solely to administer 
5.33 	elections;
5.34 	(6)(5) persons who are:
5.35 	(i) engaged in public work for the state but who are employed by contractors when the 
5.36 	performance of the contract is authorized by the legislature or other competent authority;
6.1 	(7) officers and employees of the senate, or of the house of representatives, or of a 
6.2 	legislative committee or commission who are temporarily employed;
6.3 	(ii) employed to perform professional services where the service is incidental to the 
6.4 	person's regular professional duties and where compensation is paid on a per diem basis; or
6.5 	(iii) compensated on a fee payment basis or as an independent contractor;
6.6 	(6) persons who are employed:
6.7 	(i) on a temporary basis by the house of representatives, the senate, or a legislative 
6.8 	commission or agency under the jurisdiction of the Legislative Coordinating Commission;
6.9 	(ii) as a temporary employee on or after July 1 for a period ending on or before 
6.10 	October 15 of that calendar year for the Minnesota State Agricultural Society or the 
6.11 	Minnesota State Fair, or as an employee at any time for a special event held on the 
6.12 	fairgrounds;
6.13 	(iii) by the executive branch as a temporary employee in the classified service or 
6.14 	as an executive branch temporary employee in the unclassified service if appointed for a 
6.15 	definite period not to exceed six months, and if employment is less than six months, then 
6.16 	in any 12-month period;
6.17 	(iv) by the adjutant general if employed on an unlimited intermittent or temporary 
6.18 	basis in the classified service or in the unclassified service for the support of Army or Air 
6.19 	National Guard training facilities;
6.20 	(v) by a state or federal program for training or rehabilitation as a temporary 
6.21 	employee if employed for a limited period from an area of economic distress and if other 
6.22 	than a skilled or supervisory personnel position or other than a position that has civil 
6.23 	service status covered by the retirement system; and
6.24 	(vi) by the Metropolitan Council or a statutory board of the Metropolitan Council 
6.25 	where the members of the board are appointed by the Metropolitan Council as a temporary 
6.26 	employee if the appointment does not exceed six months;
6.27 	(8)(7) receivers, jurors, notaries public, and court employees who are not in the 
6.28 	judicial branch as defined in section 43A.02, subdivision 25, except referees and adjusters 
6.29 	employed by the Department of Labor and Industry;
6.30 	(9)(8) patient and inmate help who perform services in state charitable, penal, and 
6.31 	correctional institutions, including thea Minnesota Veterans Home;
6.32 	(10) persons who are employed for professional services where the service is 
6.33 	incidental to their regular professional duties and whose compensation is paid on a per 
6.34 	diem basis;
6.35 	(11)(9) employees of the Sibley House Association;
6.36 	(10) persons who are:
7.1 	(12) the(i) members of any state board or commission who serve the state 
7.2 	intermittently and are paid on a per diem basis;, the secretary, secretary-treasurer, and 
7.3 	treasurer of those boards if their compensation is $5,000 or less per year, or, if they are 
7.4 	legally prohibited from serving more than three years;, and the board of managers of the 
7.5 	State Agricultural Society and its treasurer unless the treasurer is also its full-time secretary;
7.6 	(13) state troopers and persons who are described in section 352B.011, subdivision 
7.7 	10, clauses (2) to (8);
7.8 	(14) temporary employees of the Minnesota State Fair who are employed on or 
7.9 	after July 1 for a period not to extend beyond October 15 of that year; and persons who 
7.10 	are employed at any time by the state fair administration for special events held on the 
7.11 	fairgrounds;
7.12 	(ii) examination monitors employed by a department, agency, commission, or board 
7.13 	of the state to conduct examinations that are required by law; or
7.14 	(iii) appointees serving as a member of a fact-finding commission or an adjustment 
7.15 	panel, an arbitrator, or a labor referee under chapter 179;
7.16 	(15)(11) emergency employees who are in the classified service; except that, 
7.17 	but if an emergency employee, within the same pay period, becomes a provisional or 
7.18 	probationary employee on other than a temporary basis, the employee must be considered 
7.19 	a "state employee" retroactively to the beginning of the pay period;
7.20 	(16) temporary employees in the classified service, and temporary employees in the 
7.21 	unclassified service who are appointed for a definite period of not more than six months 
7.22 	and who are employed less than six months in any one-year period;
7.23 	(17) interns who are hired for six months or less and trainee employees, except 
7.24 	those listed in subdivision 2a, clause (8);
7.25 	(18) persons whose compensation is paid on a fee basis or as an independent 
7.26 	contractor;
7.27 	(19) state employees who are employed by the Board of Trustees of the Minnesota 
7.28 	State Colleges and Universities in unclassified positions enumerated in section 43A.08, 
7.29 	subdivision 1, clause (9);
7.30 	(20) state employees who in any year have credit for 12 months service as teachers 
7.31 	in the public schools of the state and as teachers are members of the Teachers Retirement 
7.32 	Association or a retirement system in St. Paul, Minneapolis, or Duluth, except for 
7.33 	incidental employment as a state employee that is not covered by one of the teacher 
7.34 	retirement associations or systems;
8.1 	(21) employees of the adjutant general who are employed on an unlimited 
8.2 	intermittent or temporary basis in the classified or unclassified service for the support of 
8.3 	Army and Air National Guard training facilities;
8.4 	(22) chaplains and nuns(12) persons who are members of a religious order who are 
8.5 	excluded from coverage under the federal Old Age, Survivors, Disability, and Health 
8.6 	Insurance Program for the performance of service as specified in United States Code, title 
8.7 	42, section 410(a)(8)(A), as amended, if no irrevocable election of coverage has been 
8.8 	made under section 3121(r) of the Internal Revenue Code of 1986, as amended through 
8.9 	December 31, 1992;
8.10 	(23) examination monitors who are employed by departments, agencies, 
8.11 	commissions, and boards to conduct examinations required by law;
8.12 	(24) persons who are appointed to serve as members of fact-finding commissions or 
8.13 	adjustment panels, arbitrators, or labor referees under chapter 179;
8.14 	(25) temporary employees who are employed for limited periods under any state or 
8.15 	federal program for training or rehabilitation, including persons who are employed for 
8.16 	limited periods from areas of economic distress, but not including skilled and supervisory 
8.17 	personnel and persons having civil service status covered by the system;
8.18 	(26) full-time students who are employed by the Minnesota Historical Society 
8.19 	intermittently during part of the year and full-time during the summer months;
8.20 	(27) temporary employees who are appointed for not more than six months, of 
8.21 	the Metropolitan Council and of any of its statutory boards, if the board members are 
8.22 	appointed by the Metropolitan Council;
8.23 	(28) persons who are employed in positions designated by the Department of 
8.24 	Management and Budget as student workers;
8.25 	(29)(13) members of trades who are employed by the successor to the Metropolitan 
8.26 	Waste Control Commission, who have trade union pension plan coverage under a 
8.27 	collective bargaining agreement, and who are first employed after June 1, 1977;
8.28 	(30) off-duty peace officers while employed by the Metropolitan Council;
8.29 	(31) persons who are employed as full-time police officers by the Metropolitan 
8.30 	Council and as police officers are members of the public employees police and fire fund;
8.31 	(32) persons who are employed as full-time firefighters by the Department of Military 
8.32 	Affairs and as firefighters are members of the public employees police and fire fund;
8.33 	(33)(14) foreign citizens who are employed under a work permit of less than three 
8.34 	years, or under an H-1b/JVH-1b visa or a J-1 visa that is initially valid for less than three 
8.35 	years of employment, unless notice of a visa extension is supplied which allows them to 
8.36 	work for three or more years as of the date that the extension is granted and is supplied to 
9.1 	the retirement plan, in which case they arethe person is eligible for coverage from the date 
9.2 	extended of the extension; and
9.3 	(34) persons who are employed by the Board of Trustees of the Minnesota State 
9.4 	Colleges and Universities and who elected to remain members of the Public Employees 
9.5 	Retirement Association or of the MERF division of the Public Employees Retirement 
9.6 	Association as the successor of the Minneapolis Employees Retirement Fund, whichever 
9.7 	applies, under Minnesota Statutes 1994, section 136C.75; and
9.8 	(35) employees who have elected to transfer service to the unclassified program 
9.9 	under section 352D.02, subdivision 1d.
9.10 	(15) reemployed annuitants of the general state employees retirement plan, the 
9.11 	military affairs personnel retirement plan, the transportation department pilots retirement 
9.12 	plan, the state fire marshal employees retirement plan, or the correctional state employees 
9.13 	retirement plan during the course of that reemployment.

9.14 	EFFECTIVE DATE. This section is effective July 1, 2014.

9.15 	Sec. 3. Minnesota Statutes 2013 Supplement, section 353.01, subdivision 2a, is 
9.16 	amended to read:
9.17 		Subd. 2a.Included employees; mandatory membership. (a) Public employees 
9.18 	whose annual  salary exceeds $425 in any month from one governmental subdivision is 
9.19 	stipulated in advance to exceed $5,100 if the person is not a school district employee or 
9.20 	$3,800 if the person is a school district employee and who are not specifically excluded 
9.21 	under subdivision 2b or who have not been provided an option to participate under 
9.22 	subdivision 2d, whether individually or by action of the governmental subdivision, 
9.23 	must participate as members of the association with retirement coverage by the general 
9.24 	employees retirement plan under this chapter, the public employees police and fire 
9.25 	retirement plan under this chapter, or the local government correctional employees 
9.26 	retirement plan under chapter 353E, whichever applies. Membership commences as 
9.27 	a condition of their employment on the first day of their employment or on the first day 
9.28 	that the eligibility criteria are met, whichever is later. Public employees include but are 
9.29 	not limited to:
9.30 	(1) persons whose salary meets the threshold in this paragraph from employment in 
9.31 	one or more positions within one governmental subdivision;
9.32 	(2) elected county sheriffs;
9.33 	(3) persons who are appointed, employed, or contracted to perform governmental 
9.34 	functions that by law or local ordinance are required of a public officer, including, but 
9.35 	not limited to:
10.1 	(i) town and city clerk or treasurer;
10.2 	(ii) county auditor, treasurer, or recorder;
10.3 	(iii) city manager as defined in section 353.028 who does not exercise the option 
10.4 	provided under subdivision 2d; or
10.5 	(iv) emergency management director, as provided under section 12.25;
10.6 	(4) physicians under section 353D.01, subdivision 2, who do not elect public 
10.7 	employees defined contribution plan coverage under section 353D.02, subdivision 2;
10.8 	(5) full-time employees of the Dakota County Agricultural Society;
10.9 	(6) employees of the Red Wing Port Authority who were first employed by the 
10.10 	Red Wing Port Authority before May 1, 2011, and who are not excluded employees 
10.11 	under subdivision 2b; and
10.12 	(7) employees of the Seaway Port Authority of Duluth who are not excluded 
10.13 	employees under subdivision 2b.
10.14 	(8) employees of the Stevens County Housing and Redevelopment Authority who 
10.15 	were first employed by the Stevens County Housing and Redevelopment Authority before 
10.16 	May 1, 2014, and who are not excluded employees under subdivision 2b; and
10.17 	(9) employees of the Public Employees Retirement Association.
10.18 	(b) A public employee or elected official who was a member of the association on 
10.19 	June 30, 2002, based on employment that qualified for membership coverage by the public 
10.20 	employees retirement plan or the public employees police and fire plan under this chapter, 
10.21 	or the local government correctional employees retirement plan under chapter 353E as of 
10.22 	June 30, 2002, retains that membership for the duration of the person's employment in that 
10.23 	position or incumbency in elected office. Except as provided in subdivision 28, the person 
10.24 	shall participate as a member until the employee or elected official terminates public 
10.25 	employment under subdivision 11a or terminates membership under subdivision 11b.
10.26 	(c) If in any subsequent year the annual salary of an included public employee is 
10.27 	less than $425 in any subsequent month the minimum salary threshold specified in this 
10.28 	subdivision, the member retains membership eligibility.
10.29 	(d) For the purpose of participation in the MERF division of the general employees 
10.30 	retirement plan, public employees include employees who were members of the former 
10.31 	Minneapolis Employees Retirement Fund on June 29, 2010, and who participate as 
10.32 	members of the MERF division of the association.

10.33 	EFFECTIVE DATE. The amendments to paragraphs (b) and (d) are effective the 
10.34 	day following final enactment. The amendments to paragraphs (a) and (c) are effective 
10.35 	January 1, 2015.

11.1 	Sec. 4. Minnesota Statutes 2013 Supplement, section 353.01, subdivision 2b, is 
11.2 	amended to read:
11.3 		Subd. 2b.Excluded employees. (a) The following public employees are not eligible 
11.4 	to participate as members of the association with retirement coverage by the general 
11.5 	employees retirement plan, the local government correctional employees retirement plan 
11.6 	under chapter 353E, or the public employees police and fire retirement plan:
11.7 	(1) persons whose annual salary from one governmental subdivision never exceeds 
11.8 	 an amount, stipulated in writing in advance, of $5,100 if the person is not a school district 
11.9 	employee or $3,800 if the person is a school district employee. If annual compensation 
11.10 	from one governmental subdivision to an employee exceeds the stipulated amount in a 
11.11 	calendar year or a school year, whichever applies, after being stipulated in advance not to 
11.12 	exceed the applicable amount, the stipulation is no longer valid and contributions must 
11.13 	be made on behalf of the employee under section 353.27, subdivision 12, from the first 
11.14 	month in which the employee received salary exceeding $425 in a month;
11.15 	(2) public officers who are elected to a governing body, city mayors, or persons who 
11.16 	are appointed to fill a vacancy in an elective office of a governing body, whose term of office 
11.17 	commences on or after July 1, 2002, for the service to be rendered in that elective position;
11.18 	(3) election officers or election judges and persons employed solely to administer 
11.19 	elections;
11.20 	(4) patient and inmate personnel who perform services for a governmental 
11.21 	subdivision;
11.22 	(5) except as otherwise specified in subdivision 12a, employees who are hired for
11.23 	 employed solely in a temporary position as defined under subdivision 12a, and employees 
11.24 	who resign from a nontemporary position and accept a temporary position within 30 days 
11.25 	of that resignation in the same governmental subdivision;
11.26 	(6) employees who are employed by reason of work emergency caused by fire, 
11.27 	flood, storm, or similar disaster, but if the person becomes a probationary or provisional 
11.28 	employee within the same pay period, other than on a temporary basis, the person is a 
11.29 	"public employee" retroactively to the beginning of the pay period;
11.30 	(7) employees who by virtue of their employment in one governmental subdivision 
11.31 	are required by law to be a member of and to contribute to any of the plans or funds 
11.32 	administered by the Minnesota State Retirement System, the Teachers Retirement 
11.33 	Association, the Duluth Teachers Retirement Fund Association, andor the St. Paul 
11.34 	Teachers Retirement Fund Association., but this clauseexclusion must not be construed 
11.35 	to prevent a person from being a member of and contributing to the Public Employees 
11.36 	Retirement Association and also belonging to and contributing to another public pension 
12.1 	plan or fund for other service occurring during the same period of time., and a person who 
12.2 	meets the definition of "public employee" in subdivision 2 by virtue of other service 
12.3 	occurring during the same period of time becomes a member of the association unless 
12.4 	contributions are made to another public retirement fundplan on the salary based on the 
12.5 	other service or to the Teachers Retirement Association by a teacher as defined in section 
12.6 	354.05, subdivision 2;
12.7 	(8) persons who are members of a religious order and are excluded from coverage 
12.8 	under the federal Old Age, Survivors, Disability, and Health Insurance Program for the 
12.9 	performance of service as specified in United States Code, title 42, section 410(a)(8)(A), 
12.10 	as amended through January 1, 1987, if no irrevocable election of coverage has been made 
12.11 	under section 3121(r) of the Internal Revenue Code of 1954, as amended;
12.12 	(9) employees ofpersons who are:
12.13 	(i) employed by a governmental subdivision who have not reached the age of 23 
12.14 	and who are enrolled on a full-time basis to attend or are attending classes on a full-time 
12.15 	basis at an accredited school, college, or university in an undergraduate, graduate, or 
12.16 	professional-technical program, or at a public or charter high school;
12.17 	(10)(ii) employed as resident physicians, medical interns, and pharmacist residents 
12.18 	and, or pharmacist interns whoand are serving in a degree or residency program in a 
12.19 	public hospitalshospital or clinics in a public clinic; or
12.20 	(11)(iii) students who are serving for upa period not to exceed five years in an 
12.21 	internship or a residency program that is sponsored by a governmental subdivision, 
12.22 	including an accredited educational institution;
12.23 	(12)(10) persons who hold a part-time adult supplementary technical college license 
12.24 	who render part-time teaching service in a technical college;
12.25 	(13)(11) except for employees of Hennepin County or employees of Hennepin 
12.26 	Healthcare System, Inc., foreign citizens who are employed by a governmental subdivision 
12.27 	under a work permit, or under an H-1b visa initially issued or extended for a combined 
12.28 	period of less than three years of employment.but upon extension of the employment 
12.29 	of the visa beyond the three-year period, the foreign citizenscitizen must be reported 
12.30 	for membership beginning on the first of the month thereafter providedfollowing the 
12.31 	extension if the monthly earnings threshold as provided under subdivision 2a is met;
12.32 	(14)(12) public hospital employees who elected not to participate as members 
12.33 	of the association before 1972 and who did not elect to participate from July 1, 1988, 
12.34 	to October 1, 1988;
12.35 	(15)(13) except as provided in section 353.86, volunteer ambulance service 
12.36 	personnel, as defined in subdivision 35, but persons who serve as volunteer ambulance 
13.1 	service personnel may still qualify as public employees under subdivision 2 and may 
13.2 	be members of the Public Employees Retirement Association and participants in the 
13.3 	general employees retirement plan or the public employees police and fire plan, whichever 
13.4 	applies, on the basis of compensation received from public employment service other than 
13.5 	service as volunteer ambulance service personnel;
13.6 	(16)(14) except as provided in section 353.87, volunteer firefighters, as defined in 
13.7 	subdivision 36, engaging in activities undertaken as part of volunteer firefighter duties, 
13.8 	but a person who is a volunteer firefighter may still qualify as a public employee under 
13.9 	subdivision 2 and may be a member of the Public Employees Retirement Association and 
13.10 	a participant in the general employees retirement plan or the public employees police 
13.11 	and fire plan, whichever applies, on the basis of compensation received from public 
13.12 	employment activities other than those as a volunteer firefighter;
13.13 	(17)(15) pipefitters and associated trades personnel employed by Independent 
13.14 	School District No. 625, St. Paul, with coverage under a collective bargaining agreement 
13.15 	by the pipefitters local 455 pension plan who were either first employed after May 1, 
13.16 	1997, or, if first employed before May 2, 1997, elected to be excluded under Laws 1997, 
13.17 	chapter 241, article 2, section 12;
13.18 	(18)(16) electrical workers, plumbers, carpenters, and associated trades personnel 
13.19 	who are employed by Independent School District No. 625, St. Paul, or the city of St. 
13.20 	Paul, who have retirement coverage under a collective bargaining agreement by the 
13.21 	Electrical Workers Local 110 pension plan, the United Association Plumbers Local 34 
13.22 	pension plan, or the pension plan applicable to Carpenters Local 87322 who were either 
13.23 	first employed after May 1, 2000, or, if first employed before May 2, 2000, elected to be 
13.24 	excluded under Laws 2000, chapter 461, article 7, section 5;
13.25 	(19)(17) bricklayers, allied craftworkers, cement masons, glaziers, glassworkers, 
13.26 	painters, allied tradesworkers, and plasterers who are employed by the city of St. Paul 
13.27 	or Independent School District No. 625, St. Paul, with coverage under a collective 
13.28 	bargaining agreement by the Bricklayers and Allied Craftworkers Local 1 pension plan, 
13.29 	the Cement Masons Local 633 pension plan, the Glaziers and Glassworkers Local L-1324 
13.30 	pension plan, the Painters and Allied Trades Local 61 pension plan, or the Twin Cities 
13.31 	Plasterers Local 265 pension plan who were either first employed after May 1, 2001, or if 
13.32 	first employed before May 2, 2001, elected to be excluded under Laws 2001, First Special 
13.33 	Session chapter 10, article 10, section 6;
13.34 	(20)(18) plumbers who are employed by the Metropolitan Airports Commission, 
13.35 	with coverage under a collective bargaining agreement by the Plumbers Local 34 pension 
13.36 	plan, who either were first employed after May 1, 2001, or if first employed before May 2, 
14.1 	2001, elected to be excluded under Laws 2001, First Special Session chapter 10, article 
14.2 	10, section 6;
14.3 	(21)(19) employees who are hired after June 30, 2002, solely to fill seasonal positions 
14.4 	under subdivision 12b which are limited in duration by the employer to 185 consecutive 
14.5 	calendar days or less in each year of employment with the governmental subdivision;
14.6 	(22)(20) persons who are provided supported employment or work-study positions 
14.7 	by a governmental subdivision and who participate in an employment or industries 
14.8 	program maintained for the benefit of these persons where the governmental subdivision 
14.9 	limits the position's duration to up to five years, including persons participating in a 
14.10 	federal or state subsidized on-the-job training, work experience, senior citizen, youth, or 
14.11 	unemployment relief program where the training or work experience is not provided as a 
14.12 	part of, or for, future permanent public employment;
14.13 	(23)(21) independent contractors and the employees of independent contractors;
14.14 	(24)(22) reemployed annuitants of the association during the course of that 
14.15 	reemployment; and
14.16 	(25)(23) persons appointed to serve on a board or commission of a governmental 
14.17 	subdivision or an instrumentality thereof.; and
14.18 	(24) persons employed as full-time fixed-route bus drivers by the St. Cloud 
14.19 	Metropolitan Transit Commission who are members of the International Brotherhood 
14.20 	of Teamsters Local 638 and who are, by virtue of that employment, members of the 
14.21 	International Brotherhood of Teamsters Central States pension plan.
14.22 	(b) Any person performing the duties of a public officer in a position defined in 
14.23 	subdivision 2a, paragraph (a), clause (3), is not an independent contractor and is not an 
14.24 	employee of an independent contractor.

14.25 	EFFECTIVE DATE. This section is effective January 1, 2015, except paragraph 
14.26 	(a), clause (24), which is effective retroactively from August 1, 1986.

14.27 	Sec. 5. Minnesota Statutes 2012, section 353.27, is amended by adding a subdivision 
14.28 	to read:
14.29 		Subd. 10a.Written disclosure of membership exclusion determination. If the 
14.30 	determination by the employer under section 353.01, subdivision 2a, paragraph (a), is to 
14.31 	exclude a public employee from membership, the governmental subdivision shall provide 
14.32 	the employee with a written notice of the exclusion on a form prescribed by the executive 
14.33 	director. The notice must include the statutory basis for the exclusion and information 
14.34 	about the employee's right to appeal the determination to the association under section 
15.1 	356.96. The employer must provide the exclusion notice to the employee within two 
15.2 	weeks of the date of the determination and shall retain a copy in the person's personnel file.

15.3 	EFFECTIVE DATE. This section is effective January 1, 2015.

15.4 	Sec. 6. Minnesota Statutes 2012, section 354.05, subdivision 2, is amended to read:
15.5 		Subd. 2.Teacher. (a) "Teacher" means:
15.6 	(1) a person who renders service as a teacher, supervisor, principal, superintendent, 
15.7 	librarian, nurse, counselor, social worker, therapist, or psychologist in a public school of 
15.8 	the state located outside of the corporate limits of the city of Duluth or the city of St. Paul
15.9 	 other than in Independent School District No. 625 or in Independent School District No. 
15.10 	709, or in any charter school, irrespective of the location of the school, or in any charitable, 
15.11 	penal, or correctional institutions of a governmental subdivision, or who is engaged in 
15.12 	educational administration in connection with the state public school system, but excluding 
15.13 	the University of Minnesota, whether the position be a public office or an employment, and 
15.14 	not including the members or officers of any general governing or managing board or body;
15.15 	(2) an employee of the Teachers Retirement Association;
15.16 	(3) a person who renders teaching service on a part-time basis and who also renders 
15.17 	other services for a single employing unit. A person whosewhere the teaching service 
15.18 	comprises at least 50 percent of the combined employment salary is a member of the 
15.19 	association for all services with the single employing unit. If the person's teaching service 
15.20 	comprises or, if less than 50 percent of the combined employment salary, the executive 
15.21 	director must determine whetherdetermines all or none of the combined service is covered 
15.22 	by the association; or
15.23 	(4) a person who is not covered by the plans established under chapter 352D, 354A, 
15.24 	or 354B and who is employed by the Board of Trustees of the Minnesota State Colleges 
15.25 	and Universities system in an unclassified position as:
15.26 	(i) a president, vice-president, or dean;
15.27 	(ii) a manager or a professional in an academic or an academic support program 
15.28 	other than specified in item (i);
15.29 	(iii) an administrative or a service support faculty position; or
15.30 	(iv) a teacher or a research assistant.
15.31 	(b) "Teacher" does not mean:
15.32 	(1) a person who works for a school or institution as an independent contractor as 
15.33 	defined by the Internal Revenue Service;
15.34 	(2) a person who renders part-time teaching service or who is a customized trainer 
15.35 	as defined by the Minnesota State Colleges and Universities system if (i) the service is 
16.1 	incidental to the regular nonteaching occupation of the person; and (ii) the employer 
16.2 	stipulates annually in advance that the part-time teaching service or customized training 
16.3 	service will not exceed 300 hours in a fiscal year and retains the stipulation in its records; 
16.4 	and (iii) the part-time teaching service or customized training service actually does not 
16.5 	exceed 300 hours in a fiscal year; or
16.6 	(3) a person exempt from licensure under section 122A.30.;
16.7 	(4) annuitants of the teachers retirement plan who are employed after retirement by 
16.8 	an employing unit that participates in the teachers retirement plan during the course of 
16.9 	that reemployment;
16.10 	(5) a person who is employed by the University of Minnesota;
16.11 	(6) a member or an officer of any general governing or managing board or body of 
16.12 	an employing unit that participates in the teachers retirement plan; or
16.13 	(7) a person employed by Independent School District No. 625 or Independent 
16.14 	School District No. 709 as a teacher as defined in section 354A.011, subdivision 27.

16.15 	EFFECTIVE DATE. This section is effective July 1, 2014.

16.16 	Sec. 7. Minnesota Statutes 2012, section 354A.011, subdivision 27, is amended to read:
16.17 		Subd. 27.Teacher. (a) "Teacher" means any person who renders service for a public 
16.18 	school district, other than a charter school, located in the corporate limits of Duluth or 
16.19 	St. Paul, as any of the following:
16.20 	(1) a full-time employee in a position for which a valid license from the state 
16.21 	Department of Education is required;
16.22 	(2) an employee of the teachers retirement fund association located in the city of 
16.23 	the first class;
16.24 	(3) a part-time employee in a position for which a valid license from the state 
16.25 	Department of Education is required; or
16.26 	(4) a part-time employee in a position for which a valid license from the state 
16.27 	Department of Education is required who also renders other nonteaching services for the 
16.28 	school district, unless the board of trustees of the teachers retirement fund association 
16.29 	determines that the combined employment is on the whole so substantially dissimilar to 
16.30 	teaching service that the service may not be covered by the association.
16.31 	(b) The term does not mean any person who renders service in the school district 
16.32 	as any of the following:
16.33 	(1) an independent contractor or the employee of an independent contractor;
17.1 	(2) an employee who is a full-time teacher covered by the Teachers Retirement 
17.2 	Association or by another teachers retirement fund association established pursuant to this 
17.3 	chapter or chapter 354;
17.4 	(3) an employee who is exempt from licensure pursuant to section 122A.30;
17.5 	(4) an employee who is a teacher in a technical college located in a city of the first 
17.6 	class unless the person elects coverage by the applicable first class city teacher retirement 
17.7 	fund association under section 354B.21, subdivision 2;
17.8 	(5) a teacher employed by a charter school, irrespective of the location of the 
17.9 	school; or
17.10 	(6) an employee who is a part-time teacher in a technical college in a city of the first 
17.11 	class and who has elected coverage by the applicable first class city teacher retirement 
17.12 	fund association under section 354B.21, subdivision 2, but (i) the teaching service is 
17.13 	incidental to the regular nonteaching occupation of the person; (ii) the applicable technical 
17.14 	college stipulates annually in advance that the part-time teaching service will not exceed 
17.15 	300 hours in a fiscal year; and (iii) the part-time teaching actually does not exceed 300 
17.16 	hours in the fiscal year to which the certification applies.; or
17.17 	(7) a person who is receiving a retirement annuity from the Teachers Retirement 
17.18 	Fund Association and is employed after retirement by the school district associated with 
17.19 	the retirement fund association.

17.20 	EFFECTIVE DATE. This section is effective July 1, 2014.

17.21 	Sec. 8. Minnesota Statutes 2012, section 356.24, subdivision 1, is amended to read:
17.22 		Subdivision 1.Restriction; exceptions.  It is unlawful for a school district or other 
17.23 	governmental subdivision or state agency to levy taxes for or to contribute public funds to 
17.24 	a supplemental pension or deferred compensation plan that is established, maintained, 
17.25 	and operated in addition to a primary pension program for the benefit of the governmental 
17.26 	subdivision employees other than:
17.27 	(1) to a supplemental pension plan that was established, maintained, and operated 
17.28 	before May 6, 1971;
17.29 	(2) to a plan that provides solely for group health, hospital, disability, or death 
17.30 	benefits;
17.31 	(3) to the individual retirement account plan established by chapter 354B;
17.32 	(4) to a plan that provides solely for severance pay under section 465.72 to a retiring 
17.33 	or terminating employee;
17.34 	(5) for employees other than personnel employed by the Board of Trustees of the 
17.35 	Minnesota State Colleges and Universities and covered under the Higher Education 
18.1 	Supplemental Retirement Plan under chapter 354C, but including city managers covered 
18.2 	by an alternative retirement arrangement under section 353.028, subdivision 3, paragraph 
18.3 	(a), or by the defined contribution plan of the Public Employees Retirement Association 
18.4 	under section 353.028, subdivision 3, paragraph (b), if the supplemental plan coverage is 
18.5 	provided for in a personnel policy of the public employer or in the collective bargaining 
18.6 	agreement between the public employer and the exclusive representative of public 
18.7 	employees in an appropriate unit or in the individual employment contract between a city 
18.8 	and a city manager, and if for each available investment all fees and historic rates of return 
18.9 	for the prior one-, three-, five-, and ten-year periods, or since inception, are disclosed in an 
18.10 	easily comprehended document not to exceed two pages, in an amount matching employee 
18.11 	contributions on a dollar for dollar basis, but not to exceed an employer contribution of 
18.12 	one-half of the available elective deferral permitted per year per employee, under the 
18.13 	Internal Revenue Code:
18.14 	(i) to the state of Minnesota deferred compensation plan under section 352.965;
18.15 	(ii) in payment of the applicable portion of the contribution made to any investment 
18.16 	eligible under section 403(b) of the Internal Revenue Code, if the employing unit has 
18.17 	complied with any applicable pension plan provisions of the Internal Revenue Code with 
18.18 	respect to the tax-sheltered annuity program during the preceding calendar year; or
18.19 	(iii) any other deferred compensation plan offered by the employer under section 
18.20 	457 of the Internal Revenue Code;
18.21 	(6) for personnel employed by the Board of Trustees of the Minnesota State Colleges 
18.22 	and Universities and not covered by clause (5), to the supplemental retirement plan under 
18.23 	chapter 354C, if the supplemental plan coverage is provided for in a personnel policy 
18.24 	or in the collective bargaining agreement of the public employer with the exclusive 
18.25 	representative of the covered employees in an appropriate unit, in an amount matching 
18.26 	employee contributions on a dollar for dollar basis, but not to exceed an employer 
18.27 	contribution of $2,700 a year for each employee;
18.28 	(7) to a supplemental plan or to a governmental trust to save for postretirement 
18.29 	health care expenses qualified for tax-preferred treatment under the Internal Revenue 
18.30 	Code, if the supplemental plan coverage is provided for in a personnel policy or in the 
18.31 	collective bargaining agreement of a public employer with the exclusive representative of 
18.32 	the covered employees in an appropriate unit;
18.33 	(8) to the laborers national industrial pension fund or to a laborers local pension fund 
18.34 	for the employees of a governmental subdivision who are covered by a collective bargaining 
18.35 	agreement that provides for coverage by that fund and that sets forth a fund contribution 
18.36 	rate, but not to exceed an employer contribution of $5,000 per year per employee;
19.1 	(9) to the plumbers and pipefitters national pension fund or to a plumbers and 
19.2 	pipefitters local pension fund for the employees of a governmental subdivision who are 
19.3 	covered by a collective bargaining agreement that provides for coverage by that fund and 
19.4 	that sets forth a fund contribution rate, but not to exceed an employer contribution of 
19.5 	$5,000 per year per employee;
19.6 	(10) to the international union of operating engineers pension fund for the employees 
19.7 	of a governmental subdivision who are covered by a collective bargaining agreement that 
19.8 	provides for coverage by that fund and that sets forth a fund contribution rate, but not to 
19.9 	exceed an employer contribution of $5,000 per year per employee;
19.10 	(11) to a supplemental plan organized and operated under the federal Internal 
19.11 	Revenue Code, as amended, that is wholly and solely funded by the employee's 
19.12 	accumulated sick leave, accumulated vacation leave, and accumulated severance pay;
19.13 	(12) to the International Association of Machinists national pension fund for the 
19.14 	employees of a governmental subdivision who are covered by a collective bargaining 
19.15 	agreement that provides for coverage by that fund and that sets forth a fund contribution 
19.16 	rate, but not to exceed an employer contribution of $5,000 per year per employee;
19.17 	(13) for employees of United Hospital District, Blue Earth, to the state of Minnesota 
19.18 	deferred compensation program, if the employee makes a contribution, in an amount that 
19.19 	does not exceed the total percentage of covered salary under section 353.27, subdivisions 
19.20 	3 and 3a; or
19.21 	(14) to the alternative retirement plans established by the Hennepin County Medical 
19.22 	Center under section 383B.914, subdivision 5.; or
19.23 	(15) to the International Brotherhood of Teamsters Central States pension plan for 
19.24 	fixed-route bus drivers employed by the St. Cloud Metropolitan Transit Commission who 
19.25 	are members of the International Brotherhood of Teamsters Local 638 by virtue of that 
19.26 	employment.

19.27 	EFFECTIVE DATE. This section is effective retroactively from August 1, 1986.

19.28 	Sec. 9. VALIDATION OF PAST RETIREMENT COVERAGE 
19.29 	AND CONTRIBUTIONS FOR STEVENS COUNTY HOUSING AND 
19.30 	REDEVELOPMENT AUTHORITY EMPLOYEES.
 19.31 	(a) Retirement coverage by the general employees plan of the Public Employees 
19.32 	Retirement Association, allowable service credit, and salary credit for employees of the 
19.33 	Stevens County Housing and Redevelopment Authority who were so employed after 
19.34 	November 7, 1984, and were first so employed before May 1, 2014, who had monthly 
19.35 	salary in any month of at least $325 until June 30, 1988, and who had monthly salary in 
20.1 	any month of at least $425 after June 30, 1988, who were not otherwise excluded under 
20.2 	the applicable edition of Minnesota Statutes, section 353.01, subdivision 2b, and who had 
20.3 	member deductions taken and transferred in a timely manner to the general employees 
20.4 	retirement fund before the effective date of this section are hereby validated.
20.5 	(b) Notwithstanding any provision of Minnesota Statutes, chapter 353, to the 
20.6 	contrary, employee contributions deducted from employees of the Stevens County 
20.7 	Housing and Redevelopment Authority described in paragraph (a) before the effective 
20.8 	date of this section and associated employer contributions are valid assets of the general 
20.9 	employees retirement fund and are not subject to refund or adjustment for erroneous 
20.10 	receipt except as provided in Minnesota Statutes, section 353.32, subdivision 1 or 2; 
20.11 	or 353.34, subdivisions 1 and 2.

20.12 	EFFECTIVE DATE. This section is effective the day following final enactment.

20.13 	ARTICLE 2
20.14 	RETIREMENT GOVERNING BOARD PROVISIONS

20.15 	Section 1. Minnesota Statutes 2012, section 352.03, subdivision 1, is amended to read:
20.16 		Subdivision 1.Membership of board; election; term. (a) The policy-making 
20.17 	function of the system is vested in a board of 11 members known as the board of directors. 
20.18 	This board shall consist of:
20.19 	(1) three members appointed by the governor, one of whom must be a constitutional 
20.20 	officer or appointed state official and two of whom must be public members knowledgeable 
20.21 	in pension matters,;
20.22 	(2) four state employees elected by state employees covered by the systemactive 
20.23 	members and former members eligible for a deferred annuity from the general state 
20.24 	employees retirement plan, excluding employees in categories specifically authorized 
20.25 	to designate or elect a member by this subdivision,and deferred annuitants for whom 
20.26 	a board member is designated;
20.27 	(3) one employee of the Metropolitan Council's transit operations or its successor 
20.28 	agency designated by the executive committee of the labor organization that is the 
20.29 	exclusive bargaining agent representing employees of the transit division,;
20.30 	(4) one employee who is a member of the State Patrol retirement fundplan elected 
20.31 	by active members ofand former members eligible for a deferred annuity from that fund 
20.32 	at a time and in a manner fixed by the board,plan;
21.1 	(5) one employee covered bywho is a member of the correctional state employees 
21.2 	retirement plan established under this chapter elected by employees covered byactive 
21.3 	members and former members eligible for a deferred annuity from that plan,; and
21.4 	(6) one retired employee of a plan included in the system, elected by disabled and 
21.5 	retired employees of allthe plans administered by the system at a time and in a manner to 
21.6 	be fixeddetermined by the board.
21.7 	(b) The terms of the four elected state employees under paragraph (a), clause (2), 
21.8 	must be staggered, with two of the state employee members board positions elected 
21.9 	each biennium, whose terms of office begin on the first Monday in May after their 
21.10 	election, must be elected biennially. Elected members and the appointed member of the 
21.11 	Metropolitan Council's transit operations hold office for a term of four years and until their 
21.12 	successors are elected or appointed, and have qualified.
21.13 	(c) An employee or former employee of the system is not eligible for membership 
21.14 	on the board of directors. A state employee on leave of absence is not eligible for election 
21.15 	or reelection to membership on the board of directors.
21.16 	(d) The term of any board member who is on leave for more than six months 
21.17 	automatically ends on expiration of the term of office.

21.18 	EFFECTIVE DATE. This section is effective the day following final enactment.

21.19 	Sec. 2. Minnesota Statutes 2012, section 352.03, is amended by adding a subdivision 
21.20 	to read:
21.21 		Subd. 1b.Membership voting limitations. Active members and former members 
21.22 	eligible for a deferred annuity from a plan under this chapter or chapter 352B are eligible 
21.23 	to vote in board elections as further specified and restricted in this section. Retired 
21.24 	members and disabilitants from a plan in the system may vote only for the retired member 
21.25 	position under subdivision 1, paragraph (a), clause (6). If a former member eligible for a 
21.26 	deferred annuity from a plan under this chapter or chapter 352B is a deferred annuitant 
21.27 	from more than one plan covered by the system, that person is eligible to vote only in 
21.28 	elections applicable for deferred annuitants from the plan in the system from which the 
21.29 	person last received allowable service. If a person is an active member of a plan in the 
21.30 	system and is a deferred annuitant or a retiree from another plan or plans in the system, 
21.31 	the person is only eligible to vote in board elections applicable due to the active member 
21.32 	plan membership. If a person is a deferred annuitant from a plan in the system and is also 
21.33 	a retiree from another plan in the system, the person is only eligible to vote in elections 
21.34 	applicable due to the retiree status.

22.1 	EFFECTIVE DATE. This section is effective the day following final enactment.

22.2 	ARTICLE 3
22.3 	RETIREMENT PLAN CONTRIBUTION RATE CHANGES

22.4 	Section 1. Minnesota Statutes 2012, section 352.04, subdivision 2, is amended to read:
22.5 		Subd. 2.Employee contributions. (a) The employee contribution to the fund must 
22.6 	be equal to the following percent of salary:

22.7		before July 1, 2007
	4.00
	
22.8		from July 1, 2007, to June 30, 2008
	4.25
	
22.9		from July 1, 2008, to June 30, 2009
	4.50
	
22.10		from July 1, 2009, to June 30, 2010
	4.75
	
22.11
22.12		from July 1, 2010, and thereafterto June 30, 
2014
	5.00.
	
22.13		from July 1, 2014, and thereafter
	5.50.
	
22.14 	(b) These contributions must be made by deduction from salary as provided in 
22.15 	subdivision 4.

22.16 	EFFECTIVE DATE. This section is effective on the first day of the first full pay 
22.17 	period beginning after July 1, 2014.

22.18 	Sec. 2. Minnesota Statutes 2012, section 352.04, subdivision 3, is amended to read:
22.19 		Subd. 3.Employer contributions. The employer contribution to the fund must be 
22.20 	equal to the following percent of salary:

22.21		before July 1, 2007
	4.00
	
22.22		from July 1, 2007, to June 30, 2008
	4.25
	
22.23		from July 1, 2008, to June 30, 2009
	4.50
	
22.24		from July 1, 2009, to June 30, 2010
	4.75
	
22.25
22.26		from July 1, 2010, and thereafterto June 30, 
2014
	5.00.
	
22.27		from July 1, 2014, and thereafter 
	5.50.

22.28 	EFFECTIVE DATE. This section is effective on the first day of the first full pay 
22.29 	period beginning after July 1, 2014.

22.30 	Sec. 3. Minnesota Statutes 2012, section 352.92, subdivision 1, is amended to read:
22.31 		Subdivision 1.Employee contributions. (a) Employee contributions of covered 
22.32 	correctional employees must be in an amount equal to the following percent of salary:

23.1		before July 1, 2007
	5.69
	
23.2		from July 1, 2007, to June 30, 2008
	6.40
	
23.3		from July 1, 2008, to June 30, 2009
	7.00
	
23.4		from July 1, 2009, to June 30, 2010
	7.70
	
23.5
23.6		from July 1, 2010, and thereafterto June 30, 
2014
	8.60.
	
23.7		from July 1, 2014, and thereafter 
	9.10.
	
23.8 	(b) These contributions must be made by deduction from salary as provided in 
23.9 	section 352.04, subdivision 4.

23.10 	EFFECTIVE DATE. This section is effective on the first day of the first full pay 
23.11 	period beginning after July 1, 2014.

23.12 	Sec. 4. Minnesota Statutes 2012, section 352.92, subdivision 2, is amended to read:
23.13 		Subd. 2.Employer contributions. The employer shall contribute for covered 
23.14 	correctional employees an amount equal to the following percent of salary:

23.15		before July 1, 2007
	7.98
	
23.16		from July 1, 2007, to June 30, 2008
	9.10
	
23.17		from July 1, 2008, to June 30, 2009
	10.10
	
23.18		from July 1, 2009, to June 30, 2010
	11.10
	
23.19
23.20		from July 1, 2010, and thereafterto June 30, 
2014
	12.10.
	
23.21		from July 1, 2014, and thereafter 
	12.85.

23.22 	EFFECTIVE DATE. This section is effective on the first day of the first full pay 
23.23 	period beginning after July 1, 2014.

23.24 	Sec. 5. Minnesota Statutes 2012, section 353.27, subdivision 2, is amended to read:
23.25 		Subd. 2.General employees retirement plan; employee contribution. (a) For 
23.26 	a basic member of the general employees retirement plan of the Public Employees 
23.27 	Retirement Association, the employee contribution is 9.10 percent of salary. For a 
23.28 	coordinated member of the general employees retirement plan of the Public Employees 
23.29 	Retirement Association, the employee contribution is the following percentage of salary 
23.30 	plus any contribution rate adjustment under subdivision 3b:

23.31		Effective before January 1, 2011
	6.00
	
23.32		Effective after December 31, 2010
	6.25
	
23.33		Effective January 1, 2015
	6.50.
	
23.34 	(b) These contributions must be made by deduction from salary as defined in section 
23.35 	353.01, subdivision 10, in the manner provided in subdivision 4. If any portion of a 
24.1 	member's salary is paid from other than public funds, the member's employee contribution 
24.2 	must be based on the total salary received by the member from all sources.

24.3 	EFFECTIVE DATE. This section is effective the day following final enactment.

24.4 	Sec. 6. Minnesota Statutes 2012, section 353.27, subdivision 3, is amended to read:
24.5 		Subd. 3.General employees retirement plan; employer contribution. (a) For 
24.6 	a basic member of the general employees retirement plan of the Public Employees 
24.7 	Retirement Association, the employer contribution is 9.10 percent of salary. For a 
24.8 	coordinated member of the general employees retirement plan of the Public Employees 
24.9 	Retirement Association, the employer contribution is the following percentage of salary 
24.10 	plus any contribution rate adjustment under subdivision 3b:

24.11		Effective before January 1, 2011
	6.00
	
24.12		Effective after December 31, 2010
	6.25
	
24.13		Effective January 1, 2015
	6.50.
	
24.14 	(b) This contribution must be made from funds available to the employing 
24.15 	subdivision by the means and in the manner provided in section 353.28.

24.16 	EFFECTIVE DATE. This section is effective the day following final enactment.

24.17 	Sec. 7. Minnesota Statutes 2012, section 353.27, subdivision 3b, is amended to read:
24.18 		Subd. 3b.Change in employee and employer contributions in certain instances.
 24.19 	(a) For purposes of this section:
24.20 	(1) a contribution sufficiency exists if the total of the employee contribution under 
24.21 	subdivision 2, the employer contribution under subdivision 3, the additional employer 
24.22 	contribution under subdivision 3a, and any additional contribution previously imposed 
24.23 	under this subdivision exceeds the total of the normal cost, the administrative expenses, 
24.24 	and the amortization contribution of the general employees retirement plan as reported in 
24.25 	the most recent actuarial valuation of the retirement plan prepared by the actuary retained 
24.26 	under section 356.214 and prepared under section 356.215 and the standards for actuarial 
24.27 	work of the Legislative Commission on Pensions and Retirement; and
24.28 	(2) a contribution deficiency exists if the total of the employee contributions under 
24.29 	subdivision 2, the employer contributions under subdivision 3, the additional employer 
24.30 	contribution under subdivision 3a, and any additional contribution previously imposed 
24.31 	under this subdivision is less than the total of the normal cost, the administrative expenses, 
24.32 	and the amortization contribution of the general employees retirement plan as reported in 
24.33 	the most recent actuarial valuation of the retirement plan prepared by the actuary retained 
25.1 	under section 356.214 and prepared under section 356.215 and the standards for actuarial 
25.2 	work of the Legislative Commission on Pensions and Retirement.
25.3 	(b) Employee and employer contributions to the general employees retirement plan 
25.4 	under subdivisions 2 and 3 must be adjusted:
25.5 	(1) if, on or after July 1, 2010, the regular actuarial valuation of the general employees 
25.6 	retirement plan of the Public Employees Retirement Association under section 356.215
25.7 	indicates that there is a contribution sufficiency under paragraph (a) greater than one 
25.8 	percent of covered payroll and that the sufficiency has existed for at least two consecutive 
25.9 	years, the coordinated program employee and employer contribution rates must be 
25.10 	decreased as determined under paragraph (c) to a level such that the sufficiency is no 
25.11 	greater than one percent of covered payroll based on the most recent actuarial valuation; or
25.12 	(2) if, on or after July 1, 2010, the regular actuarial valuation of the general 
25.13 	employees retirement plan of the Public Employees Retirement Association under section 
25.14 	356.215 indicates that there is a contribution deficiency equal to or greater than 0.5 percent 
25.15 	of covered payroll and that the deficiency has existed for at least two consecutive years, 
25.16 	the coordinated program employee and employer contribution rates must be increased 
25.17 	as determined under paragraph (d) to a level such that no deficiency exists based on the 
25.18 	most recent actuarial valuation.
25.19 	(c) If the actuarially required contribution of the general employees retirement plan is 
25.20 	less than the total support provided by the combined employee and employer contribution 
25.21 	rates under subdivisions 2, 3, and 3a, by more than one percent of covered payroll, 
25.22 	the general employees retirement plan coordinated program employee and employer 
25.23 	contribution rates under subdivisions 2 and 3 must be decreased incrementally over one or 
25.24 	more years by no more than 0.25 percent of pay each for employee and employer matching 
25.25 	contribution rates to a level such that there remains a contribution sufficiency of at least one 
25.26 	percent of covered payroll. No contribution rate decrease may be made until at least two 
25.27 	years have elapsed since any adjustment under this subdivision has been fully implemented.
25.28 	(d) If the actuarially required contribution exceeds the total support provided by the 
25.29 	combined employee and employer contribution rates under subdivisions 2, 3, and 3a, 
25.30 	the employee and matching employer contribution rates must be increased equally to 
25.31 	eliminate that contribution deficiency. If the contribution deficiency is:
25.32 	(1) less than two percent, the incremental increase may be up to 0.25 percent for the 
25.33 	general employees retirement plan employee and matching employer contribution rates;
25.34 	(2) greater than 1.99 percent and less than 4.01 percent, the incremental increase 
25.35 	may be up to 0.5 percent for the employee and matching employer contribution rates; or
26.1 	(3) greater than four percent, the incremental increase may be up to 0.75 percent for 
26.2 	the employee and matching employer contribution.
26.3 	(e) The general employees retirement plan contribution sufficiency or deficiency 
26.4 	determination under paragraphs (a) to (d) must be made without the inclusion of the 
26.5 	contributions to, the funded condition of, or the actuarial funding requirements of the 
26.6 	MERF division.
26.7 	(f) Any recommended adjustment to the contribution rates must be reported to the 
26.8 	chair and the executive director of the Legislative Commission on Pensions and Retirement 
26.9 	by January 15 following the receipt of the most recent annual actuarial valuation prepared 
26.10 	under section 356.215. If the Legislative Commission on Pensions and Retirement does 
26.11 	not recommend against the rate change or does not recommend a modification in the rate 
26.12 	change, the recommended adjustment becomes effective on the first day of the first full 
26.13 	payroll period in the fiscal yearfor any salary paid on or after the January 1 next following 
26.14 	receipt of the most recent actuarial valuation that gave rise to the adjustment the legislative 
26.15 	session in which the Legislative Commission on Pensions and Retirement did not take any 
26.16 	action to disapprove or modify the Public Employees Retirement Association Board of 
26.17 	Trustees' recommendation to adjust the employee and employer rates.
26.18 	(g) A contribution sufficiency of up to one percent of covered payroll must be held in 
26.19 	reserve to be used to offset any future actuarially required contributions that are more than 
26.20 	the total combined employee and employer contributions under subdivisions 2, 3, and 3a.
26.21 	(h) Before any reduction in contributions to eliminate a sufficiency in excess of one 
26.22 	percent of covered pay may be recommended, the executive director must review any 
26.23 	need for a change in actuarial assumptions, as recommended by the actuary retained under 
26.24 	section 356.214 in the most recent experience study of the general employees retirement 
26.25 	plan prepared under section 356.215 and the standards for actuarial work promulgated by 
26.26 	the Legislative Commission on Pensions and Retirement that may result in an increase 
26.27 	in the actuarially required contribution and must report to the Legislative Commission 
26.28 	on Pensions and Retirement any recommendation by the board to use the sufficiency 
26.29 	exceeding one percent of covered payroll to offset the impact of an actuarial assumption 
26.30 	change recommended by the actuary retained under section 356.214, subdivision 1, and 
26.31 	reviewed by the actuary retained by the commission under section 356.214, subdivision 4.
26.32 	(i) No contribution sufficiency in excess of one percent of covered pay may be 
26.33 	proposed to be used to increase benefits, and no benefit increase may be proposed that 
26.34 	would initiate an automatic adjustment to increase contributions under this subdivision. 
26.35 	Any proposed benefit improvement must include a recommendation, prepared by the 
26.36 	actuary retained under section 356.214, subdivision 1, and reviewed by the actuary 
27.1 	retained by the Legislative Commission on Pensions and Retirement as provided under 
27.2 	section 356.214, subdivision 4, on how the benefit modification will be funded.

27.3 	EFFECTIVE DATE. This section is effective the day following final enactment.

27.4 	ARTICLE 4
27.5 	JOINT AND SURVIVOR OPTIONAL ANNUITY COMPUTATION 
27.6 	DISCOUNT RATE

27.7 	Section 1. Minnesota Statutes 2012, section 3A.01, subdivision 1a, is amended to read:
27.8 		Subd. 1a.Actuarial equivalent. (a) "Actuarial equivalent" means the condition of 
27.9 	one allowance or benefit having an equal actuarial present value to another allowance or 
27.10 	benefit, determined by the actuary retained under section 356.214 as of a given date at a 
27.11 	specified age with each actuarial present value based on the mortality table applicable for 
27.12 	the plan and approved under section 356.215, subdivision 18, and using the applicable 
27.13 	preretirement or postretirement interest rate assumption specified in section 356.215, 
27.14 	subdivision 8.
27.15 	(b) For purposes of computing a joint and survivor annuity, the postretirement 
27.16 	interest rate assumption specified in section 356.461 must be used, rather than the 
27.17 	postretirement interest rate specified in section 356.215, subdivision 8.

27.18 	EFFECTIVE DATE. This section is effective July 1, 2014.

27.19 	Sec. 2. Minnesota Statutes 2012, section 352.01, subdivision 12, is amended to read:
27.20 		Subd. 12.Actuarial equivalent. (a) "Actuarial equivalent" means the condition 
27.21 	of one annuity or benefit having an equal actuarial present value as another annuity or 
27.22 	benefit, determined as of a given date at a specified age with each actuarial present value 
27.23 	based on the appropriate mortality table adopted by the board of directors based on the 
27.24 	experience of the fund as recommended by the actuary retained under section 356.214, and 
27.25 	approved under section 356.215, subdivision 18, and using the applicable preretirement or 
27.26 	postretirement interest rate assumption specified in section 356.215, subdivision 8.
27.27 	(b) For purposes of computing a joint and survivor annuity, the postretirement 
27.28 	interest rate assumption specified in section 356.461 must be used, rather than the 
27.29 	postretirement interest rate specified in section 356.215, subdivision 8.

27.30 	EFFECTIVE DATE. This section is effective July 1, 2014.

28.1 	Sec. 3. Minnesota Statutes 2013 Supplement, section 352.03, subdivision 4, is 
28.2 	amended to read:
28.3 		Subd. 4.Duties and powers of board of directors. (a) The board shall:
28.4 	(1) elect a chair;
28.5 	(2) appoint an executive director;
28.6 	(3) establish rules to administer this chapter and chapters 3A, 352B, 352C, 352D, 
28.7 	and 490 and transact the business of the system, subject to the limitations of law;
28.8 	(4) consider and dispose of, or take any other action the board of directors deems 
28.9 	appropriate concerning, denials of applications for annuities or disability benefits under 
28.10 	this chapter, chapter 3A, 352B, 352C, 352D, or 490, and complaints of employees and 
28.11 	others pertaining to the retirement of employees and the operation of the system;
28.12 	(5) oversee the administration of the deferred compensation plan established in 
28.13 	section 352.965;
28.14 	(6) oversee the administration of the health care savings plan established in section; 
28.15 	and
28.16 	(7) approve early retirement and optional annuity factors for all plans administered 
28.17 	by the system, including approving retirement annuity factors for the unclassified state 
28.18 	employees program under chapter 352D, subject to review by the actuary retained by 
28.19 	the Legislative Commission on Pensions and Retirement; establish the schedule for 
28.20 	implementation of the approved factors; and notify the Legislative Commission on 
28.21 	Pensions and Retirement of the implementation schedule.
28.22 	(b) The board shall advise the director on any matters relating to the system and 
28.23 	carrying out functions and purposes of this chapter. The board's advice shall control.

28.24 	EFFECTIVE DATE. This section is effective July 1, 2014.

28.25 	Sec. 4. Minnesota Statutes 2012, section 352B.08, subdivision 3, is amended to read:
28.26 		Subd. 3.Optional annuity forms. (a) In lieu of the single life annuity provided in 
28.27 	subdivision 2, the member or former member may elect an optional annuity form. The 
28.28 	board of the Minnesota state retirement system shall establish a joint and survivor annuity, 
28.29 	payable to a designated beneficiary for life, adjusted to the actuarial equivalent value of 
28.30 	the single life annuity. The board shall also establish an additional optional annuity with 
28.31 	an actuarial equivalent value of the single life annuity in the form of a joint and survivor 
28.32 	annuity which provides that the elected annuity be reinstated to the single life annuity 
28.33 	provided in subdivision 2, if after commencing the elected joint and survivor annuity, the 
28.34 	designated beneficiary dies before the member, which reinstatement is not retroactive but 
28.35 	takes effect for the first full month occurring after the death of the designated beneficiary. 
29.1 	The board may also establish other actuarial equivalent value optional annuity forms. In 
29.2 	establishing actuarial equivalent value optional annuity forms, each optional annuity form 
29.3 	shall have the same present value as a regular single life annuity using the mortality 
29.4 	table adopted by the board and the interest assumption specified in section 356.215, 
29.5 	subdivision 8, and.
29.6 	(b) For purposes of computing a joint and survivor annuity, the postretirement 
29.7 	interest rate assumption specified in section 356.461 must be used, rather than the 
29.8 	postretirement interest rate specified in section 356.215, subdivision 8.
29.9 	(c) The board shall obtain the written recommendation of the actuary retained under 
29.10 	section 356.214. These recommendations shall be a part of the permanent records of 
29.11 	the board.

29.12 	EFFECTIVE DATE. This section is effective July 1, 2014.

29.13 	Sec. 5. Minnesota Statutes 2012, section 353.01, subdivision 14, is amended to read:
29.14 		Subd. 14.Actuarial equivalent. (a) "Actuarial equivalent" means the condition 
29.15 	of one annuity or benefit having an equal actuarial present value as another annuity or 
29.16 	benefit, determined as of a given date with each actuarial present value based on the 
29.17 	appropriate mortality table adopted by the board of trustees based on the experience of the 
29.18 	fund as recommended by the actuary retained under section 356.214, and approved under 
29.19 	section 356.215, subdivision 18, and using the applicable preretirement or postretirement 
29.20 	interest rate assumption specified in section 356.215, subdivision 8.
29.21 	(b) For purposes of computing a joint and survivor annuity, the postretirement 
29.22 	interest rate assumption specified in section 356.461 must be used rather than the 
29.23 	postretirement interest rate specified in section 356.215, subdivision 8.

29.24 	EFFECTIVE DATE. This section is effective on the same date as the next mortality 
29.25 	assumption adjustment or on July 1, 2017, whichever is earlier.

29.26 	Sec. 6. Minnesota Statutes 2012, section 353.30, subdivision 3, is amended to read:
29.27 		Subd. 3.Optional retirement annuity forms. (a) The board of trustees shall 
29.28 	establish optional annuities which shall take the form of a joint and survivor annuity. 
29.29 	Except as provided in subdivision 3a, the optional annuity forms shall be actuarially 
29.30 	equivalent to the forms provided in section 353.29 and subdivisions 1, 1a, 1b, 1c, and 5. 
29.31 	In establishing those optional forms, the board shall obtain the written recommendation of 
29.32 	the actuary retained under section 356.214. The recommendations shall be a part of the 
29.33 	permanent records of the board. A member or former member may select an optional form 
30.1 	of annuity, subject to the provisions of section 356.46, in lieu of accepting any other form 
30.2 	of annuity which might otherwise be available.
30.3 	(b) For purposes of computing a joint and survivor annuity, the postretirement 
30.4 	interest rate assumption specified in section 356.461 must be used rather than the 
30.5 	postretirement interest rate specified in section 356.215, subdivision 8.

30.6 	EFFECTIVE DATE. This section is effective on the same date as the next mortality 
30.7 	assumption adjustment or on July 1, 2017, whichever is earlier.

30.8 	Sec. 7. Minnesota Statutes 2012, section 354.05, subdivision 7, is amended to read:
30.9 		Subd. 7.Actuarial equivalent. (a) "Actuarial equivalent" means the condition 
30.10 	of one annuity or benefit having an equal actuarial present value as another annuity or 
30.11 	benefit, determined as of a given date with each actuarial present value based on the 
30.12 	appropriate mortality table adopted by the board of trustees based on the experience 
30.13 	of the association as recommended by the actuary retained under section 356.214, and 
30.14 	approved under section 356.215, subdivision 18, and using the applicable preretirement or 
30.15 	postretirement interest rate assumption specified in section 356.215, subdivision 8.
30.16 	(b) For purposes of computing a joint and survivor annuity, the postretirement 
30.17 	interest rate assumption specified in section 356.461 must be used rather than the 
30.18 	postretirement interest rate specified in section 356.215, subdivision 8.

30.19 	EFFECTIVE DATE. This section is effective July 1, 2014.

30.20 	Sec. 8. [356.461] VARIOUS RETIREMENT SYSTEMS; JOINT AND 
30.21 	SURVIVOR ANNUITY COMPUTATION.
30.22 		Subdivision 1.Joint and survivor annuity computation. Notwithstanding any 
30.23 	provision of section 356.215, subdivision 8, or 356.415 to the contrary, for purposes of 
30.24 	computing joint and survivor annuities, the applicable postretirement interest assumption 
30.25 	is 6.5 percent.
30.26 		Subd. 2.Covered plans. This section applies to the following retirement plans:
30.27 	(1) the legislators retirement plan, established under chapter 3A, including 
30.28 	constitutional officers as specified in that chapter;
30.29 	(2) the correctional state employees retirement plan of the Minnesota State 
30.30 	Retirement System, established under chapter 352;
30.31 	(3) the general state employees retirement plan of the Minnesota State Retirement 
30.32 	System, established under chapter 352;
30.33 	(4) the State Patrol retirement plan, established under chapter 352B;
31.1 	(5) the unclassified state employees retirement program of the Minnesota State 
31.2 	Retirement System, established under chapter 352D;
31.3 	(6) the judges retirement plan, established under chapter 490;
31.4 	(7) the general employees retirement plan of the Public Employees Retirement 
31.5 	Association, established under chapter 353, including the MERF division of the Public 
31.6 	Employees Retirement Association;
31.7 	(8) the public employees police and fire retirement plan of the Public Employees 
31.8 	Retirement Association, established under chapter 353;
31.9 	(9) the local government correctional service retirement plan of the Public 
31.10 	Employees Retirement Association, established under chapter 353E; and
31.11 	(10) the Teachers Retirement Association, established under chapter 354.

31.12 	EFFECTIVE DATE. (a) For plans administered by the Minnesota State Retirement 
31.13 	System and the Teachers Retirement Association, this section is effective July 1, 2014.
31.14 	(b) For plans administered by the Public Employees Retirement Association, this 
31.15 	section applies to the determination of joint and survivor factors implemented for the 
31.16 	applicable Public Employees Retirement Association plan effective on the same date as 
31.17 	the next mortality assumption adjustment or on July 1, 2017, whichever is earlier.

31.18 	Sec. 9. Minnesota Statutes 2012, section 490.121, subdivision 2a, is amended to read:
31.19 		Subd. 2a.Actuarial equivalent. (a) "Actuarial equivalent" means the condition 
31.20 	of one annuity or benefit having an equal actuarial present value as another annuity or 
31.21 	benefit, determined as of a given date with each actuarial present value based on the 
31.22 	appropriate mortality table adopted by the board of directors of the Minnesota State 
31.23 	Retirement System based on the experience of the fund as recommended by the actuary 
31.24 	retained under section 356.214 and approved under section 356.215, subdivision 18, and 
31.25 	using the applicable preretirement or postretirement interest rate assumption specified in 
31.26 	section 356.215, subdivision 8.
31.27 	(b) For purposes of computing a joint and survivor annuity, the postretirement 
31.28 	interest rate assumption specified in section 356.461 must be used, rather than the 
31.29 	postretirement interest rate specified in section 356.215, subdivision 8.

31.30 	EFFECTIVE DATE. This section is effective July 1, 2014.

32.1 	ARTICLE 5
32.2 	MSRS-CORRECTIONAL RETIREMENT PLAN COVERAGE CHANGES

32.3 	Section 1. Minnesota Statutes 2012, section 352.90, is amended to read:
32.4 	352.90 POLICY.
32.5 	It is the policy of the legislature to provide special retirement benefits for and special 
32.6 	contributions by certain correctional employees who may be required to retire at an early 
32.7 	age because they lose the mental or physical capacity required to maintain the safety, 
32.8 	security, discipline, and custody of inmates at state correctional facilities or; of patients 
32.9 	at in the state-operated forensic services program, which is comprised of the Minnesota 
32.10 	Security Hospital, the forensic nursing home, the forensic transition service, and the 
32.11 	competency restoration program; of patients in the Minnesota sex offender program,; or of 
32.12 	patients in the Minnesota Specialty Health System-Cambridge.

32.13 	Sec. 2. Minnesota Statutes 2012, section 352.91, subdivision 1, is amended to read:
32.14 		Subdivision 1.Qualifying jobs. "Covered correctional service" means service 
32.15 	performed by a state employee, as defined in section 352.01, employed at a state 
32.16 	correctional facility, the Minnesota Security Hospital state-operated forensic services 
32.17 	program, or the Minnesota sex offender program as:
32.18 	(1) a corrections officer 1;
32.19 	(2) a corrections officer 2;
32.20 	(3) a corrections officer 3;
32.21 	(4) a corrections officer supervisor;
32.22 	(5) a corrections lieutenant;
32.23 	(6) a corrections captain;
32.24 	(7) a security counselor;
32.25 	(8) a security counselor lead; or
32.26 	(9) a corrections canine officer.

32.27 	Sec. 3. Minnesota Statutes 2012, section 352.91, subdivision 2, is amended to read:
32.28 		Subd. 2.Maintenance, correctional industry, and trades. "Covered correctional 
32.29 	service" also means service rendered at any time by state employees as maintenance 
32.30 	personnel, correctional industry personnel, or members of trades certified by the 
32.31 	commissioner of management and budget to the executive director as being engaged for at 
32.32 	least 75 percent of the employee's working time in the rehabilitation, treatment, custody, 
32.33 	or supervision of inmates at a Minnesota correctional facility, or of patients at in the 
33.1 	Minnesota Security Hospital state-operated forensic services program or the Minnesota 
33.2 	sex offender program.

33.3 	Sec. 4. Minnesota Statutes 2012, section 352.91, subdivision 3c, is amended to read:
33.4 		Subd. 3c.Nursing personnel. (a) "Covered correctional service" means service 
33.5 	by a state employee in one of the employment positions at a correctional facility or at, 
33.6 	in the Minnesota Security Hospital state-operated forensic services program, or in the 
33.7 	Minnesota sex offender program that are specified in paragraph (b) if at least 75 percent of 
33.8 	the employee's working time is spent in direct contact with inmates or patients and the fact 
33.9 	of this direct contact is certified to the executive director by the appropriate commissioner.
33.10 	(b) The employment positions are as follows:
33.11 	(1) registered nurse - senior;
33.12 	(2) registered nurse;
33.13 	(3) registered nurse - principal;
33.14 	(4) licensed practical nurse 2;
33.15 	(5) registered nurse advance practice; and
33.16 	(6) psychiatric advance practice registered nurse.

33.17 	EFFECTIVE DATE. This section is effective the day following final enactment.

33.18 	Sec. 5. Minnesota Statutes 2012, section 352.91, subdivision 3d, is amended to read:
33.19 		Subd. 3d.Other correctional personnel. (a) "Covered correctional service" 
33.20 	means service by a state employee in one of the employment positions at a correctional 
33.21 	facility or at in the Minnesota Security Hospital state-operated forensic services program
33.22 	 specified in paragraph (b) if at least 75 percent of the employee's working time is spent 
33.23 	in direct contact with inmates or patients and the fact of this direct contact is certified to 
33.24 	the executive director by the appropriate commissioner.
33.25 	(b) The employment positions are:
33.26 	(1) automotive mechanic;
33.27 	(2) baker;
33.28 	(3) central services administrative specialist, intermediate;
33.29 	(4) central services administrative specialist, principal;
33.30 	(5) chaplain;
33.31 	(6) chief cook;
33.32 	(7) clinical program therapist 1;
33.33 	(8) clinical program therapist 2;
33.34 	(9) clinical program therapist 3;
34.1 	(10) clinical program therapist 4;
34.2 	(11) cook;
34.3 	(12) cook coordinator;
34.4 	(13) corrections inmate program coordinator;
34.5 	(14) corrections transitions program coordinator;
34.6 	(15) corrections security caseworker;
34.7 	(16) corrections security caseworker career;
34.8 	(17) corrections teaching assistant;
34.9 	(18) delivery van driver;
34.10 	(19) dentist;
34.11 	(20) electrician supervisor;
34.12 	(21) general maintenance worker lead;
34.13 	(22) general repair worker;
34.14 	(23) library/information research services specialist;
34.15 	(24) library/information research services specialist senior;
34.16 	(25) library technician;
34.17 	(26) painter lead;
34.18 	(27) plant maintenance engineer lead;
34.19 	(28) plumber supervisor;
34.20 	(29) psychologist 1;
34.21 	(30) psychologist 3;
34.22 	(31) recreation therapist;
34.23 	(32) recreation therapist coordinator;
34.24 	(33) recreation program assistant;
34.25 	(34) recreation therapist senior;
34.26 	(35) sports medicine specialist;
34.27 	(36) work therapy assistant;
34.28 	(37) work therapy program coordinator; and
34.29 	(38) work therapy technician.

34.30 	Sec. 6. Minnesota Statutes 2012, section 352.91, subdivision 3e, is amended to read:
34.31 		Subd. 3e.Minnesota Specialty Health System-Cambridge. (a) "Covered 
34.32 	correctional service" means service by a state employee in one of the employment positions 
34.33 	with the Minnesota Specialty Health System-Cambridge specified in paragraph (b) if at 
34.34 	least 75 percent of the employee's working time is spent in direct contact with patients 
35.1 	who are in the Minnesota Specialty Health System-Cambridge and if service in such a 
35.2 	position is certified to the executive director by the commissioner of human services.
35.3 	(b) The employment positions are:
35.4 	(1) behavior analyst 1;
35.5 	(2) behavior analyst 2;
35.6 	(3) behavior analyst 3;
35.7 	(4) group supervisor;
35.8 	(5) group supervisor assistant;
35.9 	(6) human services support specialist;
35.10 	(7) residential program lead;
35.11 	(8) psychologist 2;
35.12 	(9) recreation program assistant;
35.13 	(10) recreation therapist senior;
35.14 	(11) registered nurse senior;
35.15 	(12) skills development specialist;
35.16 	(13) social worker senior;
35.17 	(14) social worker specialist; and
35.18 	(15) speech pathology specialist.
35.19 	(c) A Department of Human Services employee who was employed at the Minnesota 
35.20 	Specialty Health System-Cambridge immediately preceding the 2014 conversion to the 
35.21 	community-based homes and was in covered correctional service at the time of the 
35.22 	transition shall continue to be covered by the correctional employee retirement plan while 
35.23 	employed and without a break in service with the Department of Human Services in the 
35.24 	direct care and treatment services administration.

35.25 	Sec. 7. Minnesota Statutes 2012, section 352.91, subdivision 3f, is amended to read:
35.26 		Subd. 3f.Additional Department of Human Services personnel. (a) "Covered 
35.27 	correctional service" means service by a state employee in one of the employment 
35.28 	positions specified in paragraph (b) at in the Minnesota Security Hospital state-operated 
35.29 	forensic services program or in the Minnesota sex offender program if at least 75 
35.30 	percent of the employee's working time is spent in direct contact with patients and 
35.31 	the determination of this direct contact is certified to the executive director by the 
35.32 	commissioner of human services.
35.33 	(b) The employment positions are:
35.34 	(1) behavior analyst 2;
35.35 	(2) behavior analyst 3;
36.1 	(3) certified occupational therapy assistant 1;
36.2 	(4) certified occupational therapy assistant 2;
36.3 	(5) chemical dependency counselor senior;
36.4 	(6) client advocate;
36.5 	(7) clinical program therapist 2;
36.6 	(7) (8) clinical program therapist 3;
36.7 	(8) (9) clinical program therapist 4;
36.8 	(9)(10) customer services specialist principal;
36.9 	(10) (11) dental assistant registered;
36.10 	(11) (12) group supervisor;
36.11 	(12) (13) group supervisor assistant;
36.12 	(13) (14) human services support specialist;
36.13 	(14) (15) licensed alcohol and drug counselor;
36.14 	(15) (16) licensed practical nurse 1;
36.15 	(16) (17) management analyst 3;
36.16 	(17) (18) occupational therapist;
36.17 	(18) (19) occupational therapist, senior;
36.18 	(19) (20) psychologist 1;
36.19 	(20) (21) psychologist 2;
36.20 	(21) (22) psychologist 3;
36.21 	(22) (23) recreation program assistant;
36.22 	(23) (24) recreation therapist lead;
36.23 	(24) (25) recreation therapist senior;
36.24 	(25) (26) rehabilitation counselor senior;
36.25 	(26) (27) security supervisor;
36.26 	(27) (28) skills development specialist;
36.27 	(28) (29) social worker senior;
36.28 	(29) (30) social worker specialist;
36.29 	(30) (31) social worker specialist, senior;
36.30 	(31) (32) special education program assistant;
36.31 	(32) (33) speech pathology clinician;
36.32 	(33) (34) work therapy assistant; and
36.33 	(34) (35) work therapy program coordinator.

36.34 	Sec. 8. Minnesota Statutes 2012, section 352.91, is amended by adding a subdivision 
36.35 	to read:
37.1 		Subd. 3j.State-operated forensic services program. For purposes of this section, 
37.2 	"state-operated forensic services program" means the Minnesota Security Hospital, the 
37.3 	forensic nursing home, the forensic transition service, and the competency restoration 
37.4 	program.

37.5 	ARTICLE 6
37.6 	TRA-DTRFA CONSOLIDATION

37.7 	Section 1. Minnesota Statutes 2012, section 13.632, subdivision 1, is amended to read:
37.8 		Subdivision 1.Beneficiary and survivor data. The following data on beneficiaries 
37.9 	and survivors of the St. Paul Teachers Retirement Fund Association and the Duluth 
37.10 	Teachers Retirement Fund Association members are private data on individuals: home 
37.11 	address, date of birth, direct deposit number, and tax withholding data.

37.12 	Sec. 2. Minnesota Statutes 2012, section 122A.18, subdivision 7a, is amended to read:
37.13 		Subd. 7a.Permission to substitute teach. (a) The Board of Teaching may allow a 
37.14 	person who is enrolled in and making satisfactory progress in a board-approved teacher 
37.15 	program and who has successfully completed student teaching to be employed as a 
37.16 	short-call substitute teacher.
37.17 	(b) The Board of Teaching may issue a lifetime qualified short-call substitute 
37.18 	teaching license to a person who:
37.19 	(1) was a qualified teacher under section 122A.16 while holding a continuing 
37.20 	five-year teaching license issued by the board, and receives a retirement annuity from the 
37.21 	Teachers Retirement Association, Minneapolis Teachers Retirement Fund Association,
37.22 	or the St. Paul Teachers Retirement Fund Association, or Duluth Teachers Retirement 
37.23 	Fund Association;
37.24 	(2) holds an out-of-state teaching license and receives a retirement annuity as a 
37.25 	result of the person's teaching experience; or
37.26 	(3) held a continuing five-year license issued by the board, taught at least three 
37.27 	school years in an accredited nonpublic school in Minnesota, and receives a retirement 
37.28 	annuity as a result of the person's teaching experience.
37.29 	A person holding a lifetime qualified short-call substitute teaching license is not required 
37.30 	to complete continuing education clock hours. A person holding this license may reapply 
37.31 	to the board for a continuing five-year license and must again complete continuing 
37.32 	education clock hours one school year after receiving the continuing five-year license.

38.1 	Sec. 3. Minnesota Statutes 2013 Supplement, section 353.01, subdivision 2b, is 
38.2 	amended to read:
38.3 		Subd. 2b.Excluded employees. (a) The following public employees are not eligible 
38.4 	to participate as members of the association with retirement coverage by the general 
38.5 	employees retirement plan, the local government correctional employees retirement plan 
38.6 	under chapter 353E, or the public employees police and fire retirement plan:
38.7 	(1) persons whose salary from one governmental subdivision never exceeds $425 in 
38.8 	a month;
38.9 	(2) public officers who are elected to a governing body, city mayors, or persons who 
38.10 	are appointed to fill a vacancy in an elective office of a governing body, whose term of office 
38.11 	commences on or after July 1, 2002, for the service to be rendered in that elective position;
38.12 	(3) election officers or election judges;
38.13 	(4) patient and inmate personnel who perform services for a governmental 
38.14 	subdivision;
38.15 	(5) except as otherwise specified in subdivision 12a, employees who are hired for 
38.16 	a temporary position as defined under subdivision 12a, and employees who resign from 
38.17 	a nontemporary position and accept a temporary position within 30 days in the same 
38.18 	governmental subdivision;
38.19 	(6) employees who are employed by reason of work emergency caused by fire, 
38.20 	flood, storm, or similar disaster;
38.21 	(7) employees who by virtue of their employment in one governmental subdivision 
38.22 	are required by law to be a member of and to contribute to any of the plans or funds 
38.23 	administered by the Minnesota State Retirement System, the Teachers Retirement 
38.24 	Association, the Duluth Teachers Retirement Fund Association, and the St. Paul Teachers 
38.25 	Retirement Fund Association. This clause must not be construed to prevent a person from 
38.26 	being a member of and contributing to the Public Employees Retirement Association and 
38.27 	also belonging to and contributing to another public pension plan or fund for other service 
38.28 	occurring during the same period of time. A person who meets the definition of "public 
38.29 	employee" in subdivision 2 by virtue of other service occurring during the same period of 
38.30 	time becomes a member of the association unless contributions are made to another public 
38.31 	retirement fund on the salary based on the other service or to the Teachers Retirement 
38.32 	Association by a teacher as defined in section 354.05, subdivision 2;
38.33 	(8) persons who are members of a religious order and are excluded from coverage 
38.34 	under the federal Old Age, Survivors, Disability, and Health Insurance Program for the 
38.35 	performance of service as specified in United States Code, title 42, section 410(a)(8)(A), 
39.1 	as amended through January 1, 1987, if no irrevocable election of coverage has been made 
39.2 	under section 3121(r) of the Internal Revenue Code of 1954, as amended;
39.3 	(9) employees of a governmental subdivision who have not reached the age of 
39.4 	23 and are enrolled on a full-time basis to attend or are attending classes on a full-time 
39.5 	basis at an accredited school, college, or university in an undergraduate, graduate, or 
39.6 	professional-technical program, or a public or charter high school;
39.7 	(10) resident physicians, medical interns, and pharmacist residents and pharmacist 
39.8 	interns who are serving in a degree or residency program in public hospitals or clinics;
39.9 	(11) students who are serving for up to five years in an internship or residency program 
39.10 	sponsored by a governmental subdivision, including an accredited educational institution;
39.11 	(12) persons who hold a part-time adult supplementary technical college license who 
39.12 	render part-time teaching service in a technical college;
39.13 	(13) except for employees of Hennepin County or Hennepin Healthcare System, Inc., 
39.14 	foreign citizens who are employed by a governmental subdivision under a work permit, or 
39.15 	an H-1b visa initially issued or extended for a combined period less than three years of 
39.16 	employment. Upon extension of the employment beyond the three-year period, the foreign 
39.17 	citizens must be reported for membership beginning the first of the month thereafter 
39.18 	provided the monthly earnings threshold as provided under subdivision 2a is met;
39.19 	(14) public hospital employees who elected not to participate as members of the 
39.20 	association before 1972 and who did not elect to participate from July 1, 1988, to October 
39.21 	1, 1988;
39.22 	(15) except as provided in section 353.86, volunteer ambulance service personnel, as 
39.23 	defined in subdivision 35, but persons who serve as volunteer ambulance service personnel 
39.24 	may still qualify as public employees under subdivision 2 and may be members of the 
39.25 	Public Employees Retirement Association and participants in the general employees 
39.26 	retirement plan or the public employees police and fire plan, whichever applies, on the 
39.27 	basis of compensation received from public employment service other than service as 
39.28 	volunteer ambulance service personnel;
39.29 	(16) except as provided in section 353.87, volunteer firefighters, as defined in 
39.30 	subdivision 36, engaging in activities undertaken as part of volunteer firefighter duties, 
39.31 	but a person who is a volunteer firefighter may still qualify as a public employee under 
39.32 	subdivision 2 and may be a member of the Public Employees Retirement Association and 
39.33 	a participant in the general employees retirement plan or the public employees police 
39.34 	and fire plan, whichever applies, on the basis of compensation received from public 
39.35 	employment activities other than those as a volunteer firefighter;
40.1 	(17) pipefitters and associated trades personnel employed by Independent School 
40.2 	District No. 625, St. Paul, with coverage under a collective bargaining agreement by the 
40.3 	pipefitters local 455 pension plan who were either first employed after May 1, 1997, or, 
40.4 	if first employed before May 2, 1997, elected to be excluded under Laws 1997, chapter 
40.5 	241, article 2, section 12;
40.6 	(18) electrical workers, plumbers, carpenters, and associated trades personnel who 
40.7 	are employed by Independent School District No. 625, St. Paul, or the city of St. Paul, 
40.8 	who have retirement coverage under a collective bargaining agreement by the Electrical 
40.9 	Workers Local 110 pension plan, the United Association Plumbers Local 34 pension plan, 
40.10 	or the pension plan applicable to Carpenters Local 87 who were either first employed after 
40.11 	May 1, 2000, or, if first employed before May 2, 2000, elected to be excluded under 
40.12 	Laws 2000, chapter 461, article 7, section 5;
40.13 	(19) bricklayers, allied craftworkers, cement masons, glaziers, glassworkers, 
40.14 	painters, allied tradesworkers, and plasterers who are employed by the city of St. Paul 
40.15 	or Independent School District No. 625, St. Paul, with coverage under a collective 
40.16 	bargaining agreement by the Bricklayers and Allied Craftworkers Local 1 pension plan, 
40.17 	the Cement Masons Local 633 pension plan, the Glaziers and Glassworkers Local L-1324 
40.18 	pension plan, the Painters and Allied Trades Local 61 pension plan, or the Twin Cities 
40.19 	Plasterers Local 265 pension plan who were either first employed after May 1, 2001, or if 
40.20 	first employed before May 2, 2001, elected to be excluded under Laws 2001, First Special 
40.21 	Session chapter 10, article 10, section 6;
40.22 	(20) plumbers who are employed by the Metropolitan Airports Commission, with 
40.23 	coverage under a collective bargaining agreement by the Plumbers Local 34 pension plan, 
40.24 	who either were first employed after May 1, 2001, or if first employed before May 2, 
40.25 	2001, elected to be excluded under Laws 2001, First Special Session chapter 10, article 
40.26 	10, section 6;
40.27 	(21) employees who are hired after June 30, 2002, to fill seasonal positions under 
40.28 	subdivision 12b which are limited in duration by the employer to 185 consecutive calendar 
40.29 	days or less in each year of employment with the governmental subdivision;
40.30 	(22) persons who are provided supported employment or work-study positions by a 
40.31 	governmental subdivision and who participate in an employment or industries program 
40.32 	maintained for the benefit of these persons where the governmental subdivision limits the 
40.33 	position's duration to up to five years, including persons participating in a federal or state 
40.34 	subsidized on-the-job training, work experience, senior citizen, youth, or unemployment 
40.35 	relief program where the training or work experience is not provided as a part of, or 
40.36 	for, future permanent public employment;
41.1 	(23) independent contractors and the employees of independent contractors;
41.2 	(24) reemployed annuitants of the association during the course of that 
41.3 	reemployment; and
41.4 	(25) persons appointed to serve on a board or commission of a governmental 
41.5 	subdivision or an instrumentality thereof.
41.6 	(b) Any person performing the duties of a public officer in a position defined in 
41.7 	subdivision 2a, paragraph (a), clause (3), is not an independent contractor and is not an 
41.8 	employee of an independent contractor.

41.9 	Sec. 4. Minnesota Statutes 2012, section 354.05, subdivision 2, is amended to read:
41.10 		Subd. 2.Teacher. (a) "Teacher" means:
41.11 	(1) a person who renders service as a teacher, supervisor, principal, superintendent, 
41.12 	librarian, nurse, counselor, social worker, therapist, or psychologist in a public school of 
41.13 	the state located outside of the corporate limits of the city of Duluth or the city of St. Paul, 
41.14 	or in any charter school, irrespective of the location of the school, or in any charitable, 
41.15 	penal, or correctional institutions of a governmental subdivision, or who is engaged in 
41.16 	educational administration in connection with the state public school system, but excluding 
41.17 	the University of Minnesota, whether the position be a public office or an employment, and 
41.18 	not including the members or officers of any general governing or managing board or body;
41.19 	(2) an employee of the Teachers Retirement Association;
41.20 	(3) a person who renders teaching service on a part-time basis and who also renders 
41.21 	other services for a single employing unit. A person whose teaching service comprises at 
41.22 	least 50 percent of the combined employment salary is a member of the association for all 
41.23 	services with the single employing unit. If the person's teaching service comprises less 
41.24 	than 50 percent of the combined employment salary, the executive director must determine 
41.25 	whether all or none of the combined service is covered by the association; or
41.26 	(4) a person who is not covered by the plans established under chapter 352D, 354A, 
41.27 	or 354B and who is employed by the Board of Trustees of the Minnesota State Colleges 
41.28 	and Universities system in an unclassified position as:
41.29 	(i) a president, vice-president, or dean;
41.30 	(ii) a manager or a professional in an academic or an academic support program 
41.31 	other than specified in item (i);
41.32 	(iii) an administrative or a service support faculty position; or
41.33 	(iv) a teacher or a research assistant.
41.34 	(b) "Teacher" does not mean:
42.1 	(1) a person who works for a school or institution as an independent contractor as 
42.2 	defined by the Internal Revenue Service;
42.3 	(2) a person who renders part-time teaching service or who is a customized trainer 
42.4 	as defined by the Minnesota State Colleges and Universities system if (i) the service is 
42.5 	incidental to the regular nonteaching occupation of the person; and (ii) the employer 
42.6 	stipulates annually in advance that the part-time teaching service or customized training 
42.7 	service will not exceed 300 hours in a fiscal year and retains the stipulation in its records; 
42.8 	and (iii) the part-time teaching service or customized training service actually does not 
42.9 	exceed 300 hours in a fiscal year; or
42.10 	(3) a person exempt from licensure under section 122A.30.

42.11 	Sec. 5. Minnesota Statutes 2012, section 354.05, subdivision 13, is amended to read:
42.12 		Subd. 13.Allowable service. "Allowable service" means:
42.13 	(1) any service rendered by a teacher for which on or before July 1, 1957, the 
42.14 	teacher's account in the retirement fund was credited by reason of employee contributions 
42.15 	in the form of salary deductions, payments in lieu of salary deductions, or in any other 
42.16 	manner authorized by Minnesota Statutes 1953, sections 135.01 to 135.13, as amended by 
42.17 	Laws 1955, chapters 361, 549, 550, 611, or;
42.18 	(2) any service rendered by a teacher for which on or before July 1, 1961, the teacher 
42.19 	elected to obtain credit for service by making payments to the fund pursuant tounder 
42.20 	Minnesota Statutes 1980, section 354.09 and section 354.51, or;
42.21 	(3) any service rendered by a teacher after July 1, 1957, for any calendar month 
42.22 	when the member receives salary from which deductions are made, deposited and credited 
42.23 	in the fund, or;
42.24 	(4) any service rendered by a person after July 1, 1957, for any calendar month where 
42.25 	payments in lieu of salary deductions are made, deposited and credited into the fund as 
42.26 	provided in Minnesota Statutes 1980, section 354.09, subdivision 4, and section 354.53, or;
42.27 	(5) any service rendered by a teacher for which the teacher elected to obtain credit 
42.28 	for service by making payments to the fund pursuant tounder Minnesota Statutes 1980, 
42.29 	section 354.09, subdivisions 1 and 4, sections 354.50, 354.51, Minnesota Statutes 1957, 
42.30 	section 135.41, subdivision 4, Minnesota Statutes 1971, section 354.09, subdivision 2, or 
42.31 	Minnesota Statutes, 1973 Supplement, section 354.09, subdivision 3, or;
42.32 	(6) both service during years of actual membership in the course of which 
42.33 	contributions were currently made and service in years during which the teacher was not a 
42.34 	member but for which the teacher later elected to obtain credit by making payments to the 
42.35 	fund as permitted by any law then in effect, or;
43.1 	(7) any service rendered where contributions were made and no credit was 
43.2 	established because of the limitations contained in Minnesota Statutes 1957, section 
43.3 	135.09, subdivision 2, as determined by the ratio between the amounts of money credited 
43.4 	to the teacher's account in a fiscal year and the maximum retirement contribution allowable 
43.5 	for that year, or;
43.6 	(8) MS 2002 [Expired]
43.7 	(9) a period of time during which a teacher was on strike without pay, not to exceed a 
43.8 	period of one year, if payment in lieu of salary deductions is made under section 354.72, or;
43.9 	(10) a period of service before July 1, 2006, that was properly credited as allowable 
43.10 	service by the Minneapolis Teachers Retirement Fund Association, and that was rendered 
43.11 	by a teacher as an employee of Special School District No. 1, Minneapolis, or by an 
43.12 	employee of the Minneapolis Teachers Retirement Fund Association who was a member 
43.13 	of the Minneapolis Teachers Retirement Fund Association by virtue of that employment, 
43.14 	who has not begun receiving an annuity or other retirement benefit from the former 
43.15 	Minneapolis Teachers Retirement Fund Association calculated in whole or in part on that 
43.16 	service before July 1, 2006, and who has not taken a refund of member contributions 
43.17 	related to that service unless the refund is repaid under section 354.50, subdivision 4. 
43.18 	Service as an employee of Special School District No. 1, Minneapolis, on or after July 1, 
43.19 	2006, is "allowable service" only as provided by this chapter.; or
43.20 	(11) a period of service before July 1, 2015, that was properly credited as allowable 
43.21 	service by the Duluth Teachers Retirement Fund Association, and that was rendered 
43.22 	by a teacher as an employee of Independent School District No. 709, Duluth, or by an 
43.23 	employee of the Duluth Teachers Retirement Fund Association who was a member of the 
43.24 	Duluth Teachers Retirement Fund Association by virtue of that employment, who has not 
43.25 	begun receiving an annuity or other retirement benefit from the former Duluth Teachers 
43.26 	Retirement Fund Association calculated in whole or in part on that service before July 
43.27 	1, 2015, and who has not taken a refund of member contributions related to that service 
43.28 	unless the refund is repaid under section 354.50, subdivision 4. Service as an employee 
43.29 	of Independent School District No. 709, Duluth, on or after July 1, 2015, is "allowable 
43.30 	service" only as provided by this chapter.

43.31 	Sec. 6. Minnesota Statutes 2012, section 354.42, subdivision 2, is amended to read:
43.32 		Subd. 2.Employee contribution. (a) For a basic member, The employee 
43.33 	contribution to the fund is the following percentage of the member's salary:

43.34		Period
	Basic Program
	Coordinated Program
	
43.35		before July 1, 2011
	9.0 percent
		
44.1		from July 1, 2011, until June 30, 2012
	9.5 percent
		
44.2		from July 1, 2012, until June 30, 2013
	10.0 percent
		
44.3		from July 1, 2013, until June 30, 2014
	10.5 percent
	7.0 percent
	
44.4		after June 30, 2014
	11.0 percent
	7.5 percent
	
44.5 	(b) For a coordinated member, the employee contribution is the following percentage 
44.6 	of the member's salary:

44.7		before July 1, 2011
	5.5 percent
	
44.8		from July 1, 2011, until June 30, 2012
	6.0 percent
	
44.9		from July 1, 2012, until June 30, 2013
	6.5 percent
	
44.10		from July 1, 2013, until June 30, 2014
	7.0 percent
	
44.11		after June 30, 2014
	7.5 percent
	
44.12 	(c)(b) When an employee contribution rate changes for a fiscal year, the new 
44.13 	contribution rate is effective for the entire salary paid for each employer unit with the 
44.14 	first payroll cycle reported.
44.15 	(d)(c) After June 30, 2015, if a contribution rate revision is required under 
44.16 	subdivisions 4a, 4b, and 4c, the employee contributions under paragraphs (a) and (b) must 
44.17 	be adjusted accordingly.
44.18 	(e)(d) This contribution must be made by deduction from salary. Where any portion 
44.19 	of a member's salary is paid from other than public funds, the member's employee 
44.20 	contribution must be based on the entire salary received.

44.21 	Sec. 7. Minnesota Statutes 2012, section 354.42, subdivision 3, is amended to read:
44.22 		Subd. 3.Employer. (a) The regular employer contribution to the fund by Special 
44.23 	School District No. 1, Minneapolis, is an amount equal to the applicable following 
44.24 	percentage of salary of each coordinated member and the applicable following percentage 
44.25 	of salary of each basic member: specified in paragraph (c).

44.26		Period
	Coordinated Member
		Basic Member
	
44.27		before July 1, 2011
		5.5 percent
		9.5 percent
	
44.28		from July 1, 2011, until June 30, 2012
		6.0 percent
		10.0 percent
	
44.29		from July 1, 2012, until June 30, 2013
		6.5 percent
		10.5 percent
	
44.30		from July 1, 2013, until June 30, 2014
		7.0 percent
		11.0 percent
	
44.31		after June 30, 2014
		7.5 percent
		11.5 percent
	
44.32 	The additional employer contribution to the fund by Special School District No. 1, 
44.33 	Minneapolis, is an amount equal to 3.64 percent of the salary of each teacher who is a 
44.34 	coordinated member or who is a basic member.
45.1 	(b) The regular employer contribution to the fund by Independent School District 
45.2 	No. 709, Duluth, is an amount equal to the applicable percentage of salary of each old law 
45.3 	or new law coordinated member specified for the coordinated program in paragraph (c).
45.4 	(b)(c) The employer contribution to the fund for every other employer is an amount 
45.5 	equal to the applicable following percentage of the salary of each coordinated member and 
45.6 	the applicable following percentage of the salary of each basic member:

45.7		Period
	Coordinated Member
		Basic Member
	
45.8		before July 1, 2011
		5.5 percent
		9.5 percent
	
45.9		from July 1, 2011, until June 30, 2012
		6.0 percent
		10.0 percent
	
45.10		from July 1, 2012, until June 30, 2013
		6.5 percent
		10.5 percent
	
45.11		from July 1, 2013, until June 30, 2014
		7.0 percent
		11.0 percent
	
45.12		after June 30, 2014
		7.5 percent
		11.5 percent
	
45.13 	(c)(d) When an employer contribution rate changes for a fiscal year, the new 
45.14 	contribution rate is effective for the entire salary paid for each employer unit with the 
45.15 	first payroll cycle reported.
45.16 	(d)(e) After June 30, 2015, if a contribution rate revision is made under subdivisions 
45.17 	4a, 4b, and 4c, the employer contributions under paragraphs (a) and, (b), and (c)  must 
45.18 	be adjusted accordingly.

45.19 	Sec. 8. Minnesota Statutes 2013 Supplement, section 354.436, is amended to read:
45.20 	354.436 DIRECT STATE AID ON BEHALF OF THE FORMER 
45.21 	MINNEAPOLISFIRST CLASS CITY TEACHERS RETIREMENT FUND 
45.22 	ASSOCIATION ASSOCIATIONS.
45.23 		Subdivision 1.Aid authorization. The state shall pay $12,954,000 to the Teachers 
45.24 	Retirement Association on behalf of the former Minneapolis Teachers Retirement Fund 
45.25 	Association and shall pay $15,346,000 during fiscal year 2015 to the Teachers Retirement 
45.26 	Association for the credit of the Duluth Teachers Retirement Fund Association and, after 
45.27 	fiscal year 2015, shall pay $15,346,000 on behalf of the Duluth Teachers Retirement 
45.28 	Fund Association.
45.29 		Subd. 2.Aid appropriation. The commissioner of management and budget shall 
45.30 	pay the aid amounts under subdivision 1 annually on October 1. The amount required 
45.31 	is appropriated annually from the general fund to the commissioner of management and 
45.32 	budget.
45.33 		Subd. 3.Aid expiration. The aid amounts specified in this section terminates
45.34 	terminate and this section expires on the October 1 next following the later of the 
45.35 	following dates: (1) when the current assets of the Teachers Retirement Association fund 
45.36 	equal or exceed the actuarial accrued liabilities of the fund as determined in the most 
46.1 	recent actuarial valuation report for the Teachers Retirement Association fund by the 
46.2 	actuary retained under section 356.214, or on the established date for full funding under 
46.3 	section 356.215, subdivision 11, whichever occurs earlier; or (2) when the member and 
46.4 	employer contribution rates are first determined to be eligible for a reduction under section 
46.5 	354.42, subdivisions 4a, 4b, 4c, and 4d.

46.6 	Sec. 9. Minnesota Statutes 2013 Supplement, section 354.44, subdivision 6, is 
46.7 	amended to read:
46.8 		Subd. 6.Computation of formula program retirement annuity. (a) The formula 
46.9 	retirement annuity must be computed in accordance with the applicable provisions of the 
46.10 	formulas stated in paragraph (b) or (d) on the basis of each member's average salary under 
46.11 	section 354.05, subdivision 13a, for the period of the member's formula service credit.
46.12 	(b) This paragraph, in conjunction with paragraph (c), applies to a person who first 
46.13 	became a member of the association or a member of a pension fund listed in section 
46.14 	356.30, subdivision 3, before July 1, 1989, unless paragraph (d), in conjunction with 
46.15 	paragraph (e), produces a higher annuity amount, in which case paragraph (d) applies. The 
46.16 	average salary as defined in section 354.05, subdivision 13a, multiplied by the following 
46.17 	percentages per year of formula service credit shall determine the amount of the annuity to 
46.18 	which the member qualifying therefor is entitled for service rendered before July 1, 2006:

46.19		Period
		Coordinated Member
		Basic Member
	
46.20
46.21		Each year of service 
during first ten
		 1.2 percent  per year
		 2.2 percent  per year
	
46.22
46.23		Each year of service 
thereafter
		 1.7 percent  per year
		 2.7 percent  per year
	
46.24 	For service rendered on or after July 1, 2006, by a member other than a member 
46.25 	who was a member of the former Duluth Teachers Retirement Fund Association between 
46.26 	January 1, 2006, and June 30, 2015, and for service rendered on or after July 1, 2013, by a 
46.27 	member who was a member of the former Duluth Teachers Retirement Fund Association 
46.28 	between January 1, 2013, and June 30, 2015, the average salary as defined in section 
46.29 	354.05, subdivision 13a, multiplied by the following percentages per year of service credit, 
46.30 	determines the amount the annuity to which the member qualifying therefor is entitled:

46.31		Period
		Coordinated Member
		Basic Member
	
46.32
46.33		Each year of service 
during first ten
		 1.4 percent  per year
		 2.2 percent  per year
	
46.34
46.35		Each year of service after 
ten years of service
		 1.9 percent  per year
		 2.7 percent  per year
	
46.36 	(c)(i) This paragraph applies only to a person who first became a member of the 
46.37 	association or a member of a pension fund listed in section 356.30, subdivision 3, before 
47.1 	July 1, 1989, and whose annuity is higher when calculated under paragraph (b), in 
47.2 	conjunction with this paragraph than when calculated under paragraph (d), in conjunction 
47.3 	with paragraph (e).
47.4 	(ii) Where any member retires prior to normal retirement age under a formula 
47.5 	annuity, the member shall be paid a retirement annuity in an amount equal to the normal 
47.6 	annuity provided in paragraph (b) reduced by one-quarter of one percent for each month 
47.7 	that the member is under normal retirement age at the time of retirement except that for 
47.8 	any member who has 30 or more years of allowable service credit, the reduction shall be 
47.9 	applied only for each month that the member is under age 62.
47.10 	(iii) Any member whose attained age plus credited allowable service totals 90 years 
47.11 	is entitled, upon application, to a retirement annuity in an amount equal to the normal 
47.12 	annuity provided in paragraph (b), without any reduction by reason of early retirement.
47.13 	(d) This paragraph applies to a member who has become at least 55 years old and 
47.14 	first became a member of the association after June 30, 1989, and to any other member 
47.15 	who has become at least 55 years old and whose annuity amount when calculated under 
47.16 	this paragraph and in conjunction with paragraph (e), is higher than it is when calculated 
47.17 	under paragraph (b), in conjunction with paragraph (c). For a basic member, the average 
47.18 	salary, as defined in section 354.05, subdivision 13a, multiplied by 2.7 percent for each 
47.19 	year of service for a basic member determines the amount of the retirement annuity to 
47.20 	which the basic member is entitled. The annuity of a basic member who was a member of 
47.21 	the former Minneapolis Teachers Retirement Fund Association as of June 30, 2006, must 
47.22 	be determined according to the annuity formula under the articles of incorporation of the 
47.23 	former Minneapolis Teachers Retirement Fund Association in effect as of that date. For a 
47.24 	coordinated member, the average salary, as defined in section 354.05, subdivision 13a, 
47.25 	multiplied by 1.7 percent for each year of service rendered before July 1, 2006, and by 1.9 
47.26 	percent for each year of service rendered on or after July 1, 2006, for a member other than 
47.27 	a member who was a member of the former Duluth Teachers Retirement Fund Association 
47.28 	between January 1, 2006, and June 30, 2015, and by 1.9 percent for each year of service 
47.29 	rendered on or after July 1, 2013, for a member of the former Duluth Teachers Retirement 
47.30 	Fund Association between January 1, 2013, and June 30, 2015, determines the amount of 
47.31 	the retirement annuity to which the coordinated member is entitled.
47.32 	(e) This paragraph applies to a person who has become at least 55 years old and first 
47.33 	becomes a member of the association after June 30, 1989, and to any other member who 
47.34 	has become at least 55 years old and whose annuity is higher when calculated under 
47.35 	paragraph (d) in conjunction with this paragraph than when calculated under paragraph 
47.36 	(b), in conjunction with paragraph (c). An employee who retires under the formula annuity 
48.1 	before the normal retirement age shall be paid the normal annuity provided in paragraph 
48.2 	(d) reduced so that the reduced annuity is the actuarial equivalent of the annuity that 
48.3 	would be payable to the employee if the employee deferred receipt of the annuity and the 
48.4 	annuity amount were augmented at an annual rate of three percent compounded annually 
48.5 	from the day the annuity begins to accrue until the normal retirement age if the employee 
48.6 	became an employee before July 1, 2006, and at 2.5 percent compounded annually if the 
48.7 	employee becomes an employee after June 30, 2006. Except in regards to section 354.46, 
48.8 	this paragraph remains in effect until June 30, 2015.
48.9 	(f) After June 30, 2020, this paragraph applies to a person who has become at least 
48.10 	55 years old and first becomes a member of the association after June 30, 1989, and to any 
48.11 	other member who has become at least 55 years old and whose annuity is higher when 
48.12 	calculated under paragraph (d) in conjunction with this paragraph than when calculated 
48.13 	under paragraph (b) in conjunction with paragraph (c). An employee who retires under 
48.14 	the formula annuity before the normal retirement age is entitled to receive the normal 
48.15 	annuity provided in paragraph (d). For a person who is at least age 62 or older and has at 
48.16 	least 30 years of service, the annuity must be reduced by an early reduction factor of six 
48.17 	percent per year of the annuity that would be payable to the employee if the employee 
48.18 	deferred receipt of the annuity and the annuity amount were augmented at an annual rate 
48.19 	of three percent compounded annually from the day the annuity begins to accrue until the 
48.20 	normal retirement age if the employee became an employee before July 1, 2006, and at 2.5 
48.21 	percent compounded annually if the employee became an employee after June 30, 2006. 
48.22 	For a person who is not at least age 62 or older and does not have at least 30 years of 
48.23 	service, the annuity would be reduced by an early reduction factor of four percent per year 
48.24 	for ages 55 through 59 and seven percent per year of the annuity that would be payable 
48.25 	to the employee if the employee deferred receipt of the annuity and the annuity amount 
48.26 	were augmented at an annual rate of three percent compounded annually from the day 
48.27 	the annuity begins to accrue until the normal retirement age if the employee became an 
48.28 	employee before July 1, 2006, and at 2.5 percent compounded annually if the employee 
48.29 	became an employee after June 30, 2006.
48.30 	(g) After June 30, 2015, and before July 1, 2020, for a person who would have 
48.31 	a reduced retirement annuity under either paragraph (e) or (f) if they were applicable, 
48.32 	the employee is entitled to receive a reduced annuity which must be calculated using 
48.33 	a blended reduction factor augmented monthly by 1/60 of the difference between the 
48.34 	reduction required under paragraph (e) and the reduction required under paragraph (f).
48.35 	(h) No retirement annuity is payable to a former employee with a salary that exceeds 
48.36 	95 percent of the governor's salary unless and until the salary figures used in computing 
49.1 	the highest five successive years average salary under paragraph (a) have been audited by 
49.2 	the Teachers Retirement Association and determined by the executive director to comply 
49.3 	with the requirements and limitations of section 354.05, subdivisions 35 and 35a.

49.4 	Sec. 10. [354.73] RETIREMENT COVERAGE RELATED TO THE FORMER 
49.5 	DULUTH TEACHERS RETIREMENT FUND ASSOCIATION.
49.6 		Subdivision 1.Application. This section applies to the retirement coverage of 
49.7 	members of the former Duluth Teachers Retirement Fund Association transferred to the 
49.8 	Teachers Retirement Association by section 46.
49.9 		Subd. 2.Teachers Retirement Association as successor in interest. The Teachers 
49.10 	Retirement Association is the successor in interest to all claims which the former Duluth 
49.11 	Teachers Retirement Fund Association may have or may have been able to assert against 
49.12 	any person on June 30, 2015, and is the successor in interest to all claims which could 
49.13 	have been asserted against the former Duluth Teachers Retirement Fund Association, 
49.14 	subject to the following:
49.15 	(1) the Teachers Retirement Association is not liable for any claim against the 
49.16 	Duluth Teachers Retirement Fund Association, its former board or board members, which 
49.17 	is founded upon a claim of breach of fiduciary duty, where the act or acts constituting the 
49.18 	claimed breach were not done in good faith;
49.19 	(2) the Teachers Retirement Association may assert any applicable defense to 
49.20 	any claim in any judicial or administrative proceeding that the former Duluth Teachers 
49.21 	Retirement Fund Association or its board would otherwise have been entitled to assert;
49.22 	(3) the Teachers Retirement Association may assert any applicable defense that it 
49.23 	may assert in its capacity as a statewide agency; and
49.24 	(4) the Teachers Retirement Association shall indemnify any former fiduciary of the 
49.25 	Duluth Teachers Retirement Fund Association consistent with section 356A.11.
49.26 		Subd. 3.Benefit calculation. (a) For every deferred, inactive, disabled, and 
49.27 	retired member of the Duluth Teachers Retirement Fund Association transferred under 
49.28 	subdivision 1, and the survivors of these members, annuities or benefits earned before July 
49.29 	1, 2015, other than future postretirement adjustments, must be calculated and paid by the 
49.30 	Teachers Retirement Association under the laws, articles of incorporation, and bylaws of 
49.31 	the former Duluth Teachers Retirement Fund Association that were in effect relative to 
49.32 	the person on the date of the person's termination of active service covered by the former 
49.33 	Duluth Teachers Retirement Fund Association.
49.34 	(b) Former Duluth Teachers Retirement Fund Association members who retired 
49.35 	before July 1, 2015, must receive postretirement adjustments after January 1, 2015, only 
50.1 	as provided in section 356.415. All other benefit recipients of the former Duluth Teachers 
50.2 	Retirement Fund Association must receive postretirement adjustments after December 31, 
50.3 	2015, only as provided in section 356.415.
50.4 	(c) This consolidation does not impair or diminish benefits for an active, deferred, 
50.5 	or retired member or a survivor of an active, deferred, or retired member under the 
50.6 	former Duluth Teachers Retirement Fund Association in existence at the time of the 
50.7 	consolidation, except that any future postretirement adjustments must be paid after July 1, 
50.8 	2015, in accordance with paragraph (b), and all benefits based on service on or after July 
50.9 	1, 2015, must be determined only by laws governing the Teachers Retirement Association.

50.10 	Sec. 11. Minnesota Statutes 2012, section 354A.011, subdivision 11, is amended to read:
50.11 		Subd. 11.Coordinated member. "Coordinated member" means any member of the 
50.12 	teachers retirement fund association who is covered by any agreement or modification 
50.13 	made between the state and the Secretary of Health, Education and Welfare making the 
50.14 	provisions of the federal Old Age, Survivors and Disability Insurance Act applicable 
50.15 	to certain teachers except in the case of a member of the Duluth Teachers Retirement 
50.16 	Fund Association, in which it means additionally that the member either first became a 
50.17 	member prior to July 1, 1981, and elected to be covered by the new law coordinated 
50.18 	program of the Duluth Teachers Retirement Fund Association or first became a member 
50.19 	on or subsequent to July 1, 1981.

50.20 	Sec. 12. Minnesota Statutes 2012, section 354A.011, subdivision 15a, is amended to 
50.21 	read:
50.22 		Subd. 15a.Normal retirement age. "Normal retirement age" means age 65 for a 
50.23 	person who first became a member of the coordinated program of the St. Paul Teachers 
50.24 	Retirement Fund Association or the new law coordinated program of the Duluth Teachers 
50.25 	Retirement Fund Association or a member of a pension fund listed in section 356.30, 
50.26 	subdivision 3, before July 1, 1989. For a person who first became a member of the 
50.27 	coordinated program of the St. Paul Teachers Retirement Fund Association or the new law 
50.28 	coordinated program of the Duluth Teachers Retirement Fund Association after June 30, 
50.29 	1989, normal retirement age means the higher of age 65 or retirement age, as defined in 
50.30 	United States Code, title 42, section 416(l), as amended, but not to exceed age 66. For a 
50.31 	person who is a member of the basic program of the St. Paul Teachers Retirement Fund 
50.32 	Association or the old law coordinated program of the Duluth Teachers Retirement Fund 
50.33 	Association, normal retirement age means the age at which a teacher becomes eligible for 
50.34 	a normal retirement annuity computed upon meeting the age and service requirements 
51.1 	specified in the applicable provisions of the articles of incorporation or bylaws of the 
51.2 	respective teachers retirement fund association.

51.3 	Sec. 13. Minnesota Statutes 2012, section 354A.011, subdivision 27, is amended to read:
51.4 		Subd. 27.Teacher. (a) "Teacher" means any person who renders service for a public 
51.5 	school district, other than a charter school, located in the corporate limits of Duluth or
51.6 	 St. Paul, as any of the following:
51.7 	(1) a full-time employee in a position for which a valid license from the state 
51.8 	Department of Education is required;
51.9 	(2) an employee of the teachers retirement fund association located in the city of the 
51.10 	first class St. Paul;
51.11 	(3) a part-time employee in a position for which a valid license from the state 
51.12 	Department of Education is required; or
51.13 	(4) a part-time employee in a position for which a valid license from the state 
51.14 	Department of Education is required who also renders other nonteaching services for the 
51.15 	school district, unless the board of trustees of the teachers retirement fund association 
51.16 	determines that the combined employment is on the whole so substantially dissimilar to 
51.17 	teaching service that the service may not be covered by the association.
51.18 	(b) The term does not mean any person who renders service in the school district 
51.19 	as any of the following:
51.20 	(1) an independent contractor or the employee of an independent contractor;
51.21 	(2) an employee who is a full-time teacher covered by the Teachers Retirement 
51.22 	Association or by another teachers retirement fund association established pursuant to 
51.23 	this chapter orunder chapter 354;
51.24 	(3) an employee who is exempt from licensure pursuant to section 122A.30;
51.25 	(4) an employee who is a teacher in a technical college located in a city of the first 
51.26 	class unless the person elects coverage by the applicable first class city teacher retirement 
51.27 	fund association under section 354B.21, subdivision 2;
51.28 	(5) a teacher employed by a charter school, irrespective of the location of the 
51.29 	school; or
51.30 	(6) an employee who is a part-time teacher in a technical college in athe city of the 
51.31 	first classSt. Paul and who has elected coverage by the applicable first class city teacher 
51.32 	retirement fund association under section 354B.21, subdivision 2, but (i) the teaching 
51.33 	service is incidental to the regular nonteaching occupation of the person; (ii) the applicable 
51.34 	technical college stipulates annually in advance that the part-time teaching service will not 
52.1 	exceed 300 hours in a fiscal year; and (iii) the part-time teaching actually does not exceed 
52.2 	300 hours in the fiscal year to which the certification applies.

52.3 	Sec. 14. Minnesota Statutes 2012, section 354A.021, subdivision 1, is amended to read:
52.4 		Subdivision 1.Establishment. There is established a teachers retirement fund 
52.5 	association in each of the citiescity of Duluth and St. Paul. The associations shall be
52.6 	association is known respectively as the "Duluth Teachers Retirement Fund Association" 
52.7 	and the "St. Paul Teachers Retirement Fund Association." EachThe association shall be
52.8 	is a continuation of the teachers retirement fund association with the same corporate 
52.9 	name established pursuant tounder the authorization contained in Laws 1909, chapter 
52.10 	343, section 1.

52.11 	Sec. 15. [354A.022] AUTHORIZATION TO CERTIFY FUNDS TO STATE 
52.12 	BOARD OF INVESTMENT.
52.13 		Subdivision 1.Certification of funds to State Board of Investment. The chief 
52.14 	administrative officer of the Duluth Teachers Retirement Fund Association, from time 
52.15 	to time, may certify to the State Board of Investment those portions of the assets of the 
52.16 	retirement plan that are not needed for administrative expenses or benefit payments. 
52.17 	Assets certified to the State Board of Investment must be invested under sections 11A.14 
52.18 	and 11A.23. The chief administrative officer of the Duluth Teachers Retirement Fund 
52.19 	Association may certify assets for withdrawal from the State Board of Investment only 
52.20 	to make benefit payments or to pay administrative expenses or investment expenses of 
52.21 	existing direct real estate holdings or assets that are noncompliant with State Board of 
52.22 	Investment objectives or limitations.
52.23 		Subd. 2.Investment of certified funds. Assets certified to the State Board of 
52.24 	Investment are deemed to be from a covered retirement fund required to be invested by 
52.25 	the State Board of Investment under section 11A.23.
52.26 		Subd. 3.Expiration. This section expires June 30, 2015, if the consolidation 
52.27 	provisions receive the local approvals in section 49 and all other requirements of section 
52.28 	49 are met.

52.29 	Sec. 16. Minnesota Statutes 2012, section 354A.092, is amended to read:
52.30 	354A.092 SABBATICAL LEAVE.
52.31 	Any teacher in the coordinated program of the St. Paul Teachers Retirement Fund 
52.32 	Association or any teacher in the new law coordinated program of the Duluth Teachers 
52.33 	Retirement Fund Association who is granted a sabbatical leave shall beis entitled to 
53.1 	receive allowable service credit in the applicable association for periods of sabbatical 
53.2 	leave. To obtain the service credit, the teacher on sabbatical leave shall make an employee 
53.3 	contribution to the applicable association. No teacher shall beis entitled to receive more 
53.4 	than three years of allowable service credit pursuant tounder this section for a period or 
53.5 	periods of sabbatical leave during any ten consecutive fiscal or calendar years, whichever is 
53.6 	the applicable plan year for the teachers retirement fund association. If the teacher granted a 
53.7 	sabbatical leave makes the employee contribution for a period of sabbatical leave pursuant 
53.8 	tounder this section, the employing unit shall make an employer contribution on behalf of 
53.9 	the teacher to the applicable association for that period of sabbatical leave in the manner 
53.10 	described in section 354A.12, subdivision 2a. The employee and employer contributions 
53.11 	shallmust be in an amount equal to the employee and employer contribution rates in effect 
53.12 	for other active members of the association covered by the same program applied to a salary 
53.13 	figure equal to the teacher's actual covered salary for the plan year immediately preceding 
53.14 	the sabbatical leave period. Payment of the employee contribution authorized pursuant 
53.15 	tounder this section shallmust be made by the teacher on or before June 30 of year 
53.16 	next following the year in which the sabbatical leave terminated and shallmust be made 
53.17 	without interest. For sabbatical leaves taken after June 30, 1986, the required employer 
53.18 	contributions shallmust be paid by the employing unit within 30 days after notification by 
53.19 	the association of the amount due. If the employee contributions for the sabbatical leave 
53.20 	period are less than an amount equal to the applicable contribution rate applied to a salary 
53.21 	figure equal to the teacher's actual covered salary for the plan year immediately preceding 
53.22 	the sabbatical leave period, service credit shallmust be prorated. The prorated service 
53.23 	credit shallmust be determined by the ratio between the amount of the actual payment 
53.24 	which was made and the full contribution amount payable pursuant tounder this section.

53.25 	Sec. 17. Minnesota Statutes 2012, section 354A.093, subdivision 1, is amended to read:
53.26 		Subdivision 1.Eligibility. Any teacher in the coordinated program of the St. Paul 
53.27 	Teachers Retirement Fund Association or any teacher in the new law coordinated program 
53.28 	of the Duluth Teachers Retirement Fund Association who is absent from employment by 
53.29 	reason of service in the uniformed services as defined in United States Code, title 38, 
53.30 	section 4303(13) and who returns to the employer providing active teaching service upon 
53.31 	discharge from uniformed service within the time frames required under United States 
53.32 	Code, title 38, section 4312(e), may receive allowable service credit in the applicable
53.33 	 association for all or a portion of the period of uniformed service, provided that the teacher 
53.34 	did not separate from uniformed service with a dishonorable or bad conduct discharge 
53.35 	or under other than honorable conditions.

54.1 	Sec. 18. Minnesota Statutes 2012, section 354A.096, is amended to read:
54.2 	354A.096 MEDICAL LEAVE.
54.3 	Any teacher in the coordinated program of the St. Paul Teachers Retirement Fund 
54.4 	Association or the new law coordinated program of the Duluth Teachers Retirement Fund 
54.5 	Association who is on an authorized medical leave of absence and subsequently returns to 
54.6 	teaching service is entitled to receive allowable service credit, not to exceed one year, for 
54.7 	the period of leave, upon making the prescribed payment to the fund. This payment must 
54.8 	include the required employee and employer contributions at the rates specified in section 
54.9 	354A.12, subdivisions 1 and 2a, as applied to the member's average full-time monthly 
54.10 	salary rate on the date the leave of absence commenced plus annual interest at the rate of 
54.11 	8.5 percent per year from the end of the fiscal year during which the leave terminates to the 
54.12 	end of the month during which payment is made. The member must pay the total amount 
54.13 	required unless the employing unit, at its option, pays the employer contributions. The total 
54.14 	amount required must be paid by the end of the fiscal year following the fiscal year in which 
54.15 	the leave of absence terminated or before the member retires, whichever is earlier. Payment 
54.16 	must be accompanied by a copy of the resolution or action of the employing authority 
54.17 	granting the leave and the employing authority, upon granting the leave, must certify the 
54.18 	leave to the association in a manner specified by the executive director. A member may not 
54.19 	receive more than one year of allowable service credit during any fiscal year by making 
54.20 	payment under this section. A member may not receive disability benefits under section 
54.21 	354A.36 and receive allowable service credit under this section for the same period of time.

54.22 	Sec. 19. Minnesota Statutes 2013 Supplement, section 354A.12, subdivision 1, is 
54.23 	amended to read:
54.24 		Subdivision 1.Employee contributions. (a) The contribution required to be paid 
54.25 	by each member of athe St. Paul Teachers Retirement Fund Association is the percentage 
54.26 	of total salary specified below for the applicable association and program:

54.27		Association and Program
	Percentage of Total Salary
	
54.28	Duluth Teachers Retirement Fund Association
		
54.29		old law and new law
		
54.30		coordinated programs
		
54.31		before July 1,  2013
	6.5 percent
	
54.32		effective July 1,  2013
	7.0 percent
	
54.33		effective July 1,  2014
	7.5 percent
	
54.34	St. Paul Teachers Retirement Fund Association
		
54.35		basic program after June 30, 2012
	8.5 percent
	
54.36		basic program after June 30, 2013
	8.75 percent
	
55.1		basic program after June 30, 2014
	9.0 percent
	
55.2		basic program after June 30, 2015
	9.5 percent
	
55.3		basic program after June 30, 2016
	10.0 percent
	
55.4		coordinated program after June 30, 2012
	6.0 percent
	
55.5		coordinated program after June 30, 2013
	6.25 percent
	
55.6		coordinated program after June 30, 2014
	6.5 percent
	
55.7		coordinated program after June 30, 2015
	7.0 percent
	
55.8		coordinated program after June 30, 2016
	7.5 percent
	
55.9 	(b) Contributions shallmust be made by deduction from salary and must be remitted 
55.10 	directly to the respectiveSt. Paul Teachers Retirement Fund Association at least once 
55.11 	each month.
55.12 	(c) When an employee contribution rate changes for a fiscal year, the new 
55.13 	contribution rate is effective for the entire salary paid by the employer with the first 
55.14 	payroll cycle reported.

55.15 	Sec. 20. Minnesota Statutes 2012, section 354A.12, subdivision 2, is amended to read:
55.16 		Subd. 2.Retirement contribution levy disallowed. Except as provided in 
55.17 	section 423A.02, subdivision 3, with respect to Independent School District No. 625, 
55.18 	notwithstanding any law to the contrary, levies for the St. Paul Teachers Retirement Fund 
55.19 	associations in the cities of Duluth and St. Paul Association, including levies for any 
55.20 	employer Social Security taxes for teachers covered by the Duluth Teachers Retirement 
55.21 	Fund Association or the St. Paul Teachers Retirement Fund Association, are disallowed.

55.22 	Sec. 21. Minnesota Statutes 2013 Supplement, section 354A.12, subdivision 2a, 
55.23 	is amended to read:
55.24 		Subd. 2a.Employer regular and additional contributions. (a) The employing 
55.25 	units shall make the following employer contributions to the teachers retirement fund 
55.26 	associations association:
55.27 	(1) for any coordinated member of one of the followingSt. Paul Teachers 
55.28 	Retirement Fund associations in a city of the first class Association, the employing unit 
55.29 	shall make a regular employer contribution to the respective retirement fund association in 
55.30 	an amount equal to the designated percentage of the salary of the coordinated member 
55.31 	as provided below:

55.32	Duluth Teachers Retirement Fund Association
		
55.33		before July 1,  2013
	6.79 percent
	
55.34		effective July 1,  2013
	7.29 percent
	
55.35		effective July 1,  2014
	7.50 percent
	
56.1	St. Paul Teachers Retirement Fund Association
		
56.2		after June 30, 2012
	5.0 percent
	
56.3		after June 30, 2013
	5.25 percent
	
56.4		after June 30, 2014
	5.5 percent
	
56.5		after June 30, 2015
	6.0 percent
	
56.6		after June 30, 2016
	6.25 percent
	
56.7		after June 30, 2017
	6.5 percent
	
56.8 	(2) for any basic member of the St. Paul Teachers Retirement Fund Association, the 
56.9 	employing unit shall make a regular employer contribution to the respective retirement 
56.10 	fund in an amount according to the schedule below:

56.11		after June 30, 2012
	8.5 percent of salary
	
56.12		after June 30, 2013
	8.75 percent of salary
	
56.13		after June 30, 2014
	9.0 percent of salary
	
56.14		after June 30, 2015
	9.5 percent of salary
	
56.15		after June 30, 2016
	9.75 percent of salary
	
56.16		after June 30, 2017
	10.0 percent of salary
	
56.17 	(3) for a basic member of the St. Paul Teachers Retirement Fund Association, the 
56.18 	employing unit shall make an additional employer contribution to the respective fund in 
56.19 	an amount equal to 3.64 percent of the salary of the basic member;
56.20 	(4) for a coordinated member of the St. Paul Teachers Retirement Fund Association, 
56.21 	the employing unit shall make an additional employer contribution to the respective fund 
56.22 	in an amount equal to the applicable percentage3.84 percent of the coordinated member's 
56.23 	salary, as provided below:.

56.24	St. Paul Teachers Retirement Fund Association
	3.84 percent
	
56.25 	(b) The regular and additional employer contributions must be remitted directly to 
56.26 	the respective St. Paul Teachers Retirement Fund Association at least once each month. 
56.27 	Delinquent amounts are payable with interest under the procedure in subdivision 1a.
56.28 	(c) Payments of regular and additional employer contributions for school district 
56.29 	or technical college employees who are paid from normal operating funds must be made 
56.30 	from the appropriate fund of the district or technical college.
56.31 	(d) When an employer contribution rate changes for a fiscal year, the new 
56.32 	contribution rate is effective for the entire salary paid by the employer with the first 
56.33 	payroll cycle reported.

56.34 	Sec. 22. Minnesota Statutes 2013 Supplement, section 354A.12, subdivision 3a, 
56.35 	is amended to read:
57.1 		Subd. 3a.Special direct state aid to first class city teachers retirement fund 
57.2 	associations. (a) The state shall pay $346,000 as special direct state aid to the Duluth 
57.3 	Teachers Retirement Fund Association and $2,827,000 to the St. Paul Teachers Retirement 
57.4 	Fund Association.
57.5 	(b) The aidsaid under this subdivision are is payable October 1 annually. The 
57.6 	commissioner of management and budget shall pay the aids aid specified in this 
57.7 	subdivision. The amounts amount required are is appropriated annually from the general 
57.8 	fund to the commissioner of management and budget.

57.9 	Sec. 23. Minnesota Statutes 2012, section 354A.31, subdivision 1, is amended to read:
57.10 		Subdivision 1.Age and service requirements. Any coordinated member or former 
57.11 	coordinated member of the Duluth Teachers Retirement Fund Association or of the St. 
57.12 	Paul Teachers Retirement Fund Association who has ceased to render teaching service for 
57.13 	theIndependent School District in which the teachers retirement fund association exists
57.14 	 No. 625, who is vested and who has either attained the age of at least 55 years or received 
57.15 	credit for not less than 30 years of allowable service regardless of age, shall beis entitled 
57.16 	upon written application to a retirement annuity.

57.17 	Sec. 24. Minnesota Statutes 2012, section 354A.32, subdivision 1, is amended to read:
57.18 		Subdivision 1.Optional forms generally. The board of the St. Paul Teachers 
57.19 	Retirement Fund Association shall establish for the coordinated program and the board 
57.20 	of the Duluth Teachers Retirement Fund Association shall establish for the new law 
57.21 	coordinated program an optional retirement annuity which shallmust take the form of 
57.22 	a joint and survivor annuity. EachThe board may also, in its discretion, establish an 
57.23 	optional annuity which shallmay take the form of an annuity payable for a period certain 
57.24 	and for life thereafter. EachThe board shall also establish an optional retirement annuity 
57.25 	that guarantees payment of the balance of the annuity recipient's accumulated deductions 
57.26 	to a designated beneficiary upon the death of the annuity recipient. Except as provided in 
57.27 	subdivision 1a, the optional annuity forms shallmust be the actuarial equivalent of the 
57.28 	normal forms provided in section 354A.31. In establishing these optional annuity forms, 
57.29 	the board shall obtain the written recommendation of the actuary retained under section 
57.30 	356.214. The recommendation shallmust be a part of the permanent records of the board.

57.31 	Sec. 25. Minnesota Statutes 2012, section 354A.35, subdivision 1, is amended to read:
57.32 		Subdivision 1.Death before retirement; refund. If a coordinated member or 
57.33 	former coordinated member dies prior tobefore retirement or prior tobefore the receipt 
58.1 	of any retirement annuity or other benefit payment which is or may be payable and a 
58.2 	surviving spouse optional annuity is not payable pursuant tounder subdivision 2, a 
58.3 	refund shallmust be paid to the person's surviving spouse, or if there is none, to the 
58.4 	person's designated beneficiary, or if there is none, to the legal representative of the 
58.5 	person's estate. For a coordinated member or former coordinated member of the St. Paul 
58.6 	Teachers Retirement Fund Association, the refund shallmust be in an amount equal to the 
58.7 	person's accumulated employee contributions plus interest at the rate of six percent per 
58.8 	annum compounded annually. For a coordinated member or former coordinated member 
58.9 	of the Duluth Teachers Retirement Fund Association, the refund shall be in an amount 
58.10 	equal to the person's accumulated employee contributions plus interest at the rate of six 
58.11 	percent per annum compounded annually to July 1, 2010, and four percent per annum 
58.12 	compounded annually thereafter.

58.13 	Sec. 26. Minnesota Statutes 2012, section 354A.37, subdivision 3, is amended to read:
58.14 		Subd. 3.Computation of refund amount. A former coordinated member who 
58.15 	qualifies for a refund under subdivision 1 shallis entitled to receive a refund equal to the 
58.16 	amount of the former coordinated member's accumulated employee contributions with 
58.17 	interest at the rate of six percent per annum compounded annually to July 1, 2010, if the 
58.18 	person is a former member of the Duluth Teachers Retirement Fund Association, or to
58.19 	 July 1, 2011, if the person is a former member of the St. Paul Teachers Retirement Fund 
58.20 	Association, and four percent per annum compounded annually thereafter.

58.21 	Sec. 27. Minnesota Statutes 2012, section 354A.37, subdivision 4, is amended to read:
58.22 		Subd. 4.Certain refunds at normal retirement age. Any coordinated member 
58.23 	who has attained the normal retirement age with less than ten years of allowable service 
58.24 	credit and has terminated active teaching service shall beis entitled to a refund in lieu of a 
58.25 	proportionate annuity under section 356.32. The refund must be equal to the coordinated 
58.26 	member's accumulated employee contributions plus interest at the rate of six percent 
58.27 	compounded annually to July 1, 2010, if the person is a former member of the Duluth 
58.28 	Teachers Retirement Fund Association, or to July 1, 2011, if the person is a former 
58.29 	member of the St. Paul Teachers Retirement Fund Association, and four percent per 
58.30 	annum compounded annually thereafter.

58.31 	Sec. 28. Minnesota Statutes 2012, section 354A.39, is amended to read:
58.32 	354A.39 SERVICE IN OTHER PUBLIC RETIREMENT FUNDS; ANNUITY.
59.1 	Any person who has been a member of the Minnesota State Retirement System, the 
59.2 	Public Employees Retirement Association including the Public Employees Retirement 
59.3 	Association Police and Fire Fund, the Teachers Retirement Association, the Minnesota 
59.4 	State Patrol Retirement Association, the legislators retirement plan, the constitutional 
59.5 	officers retirement plan, the Duluth Teachers Retirement Fund Association new law 
59.6 	coordinated program, the St. Paul Teachers Retirement Fund Association coordinated 
59.7 	program, or any other public employee retirement system in the state of Minnesota 
59.8 	having a like provision, but excluding all other funds providing retirement benefits for 
59.9 	police officers or firefighters, is entitled, when qualified, to an annuity from each fund if 
59.10 	the person's total allowable service in all of the funds or in any two or more of the funds 
59.11 	totals three or more years, provided that no portion of the allowable service upon which 
59.12 	the retirement annuity from one fund is based is used again in the computation for a 
59.13 	retirement annuity from another fund and provided further that the person has not taken a 
59.14 	refund from any of funds or associations since the person's membership in the fund or 
59.15 	association has terminated. The annuity from each fund or association must be determined 
59.16 	by the appropriate provisions of the law governing each fund or association, except that 
59.17 	the requirement that a person must have at least three years of allowable service in the 
59.18 	respective fund or association does not apply for the purposes of this section, provided 
59.19 	that the aggregate service in two or more of these funds equals three or more years.

59.20 	Sec. 29. Minnesota Statutes 2012, section 354A.41, is amended to read:
59.21 	354A.41 ADMINISTRATION OF COORDINATED PROGRAM.
59.22 		Subdivision 1.Administrative provisions. The provisions of the articles of 
59.23 	incorporation and bylaws of the St. Paul Teachers Retirement Fund Association relating 
59.24 	to the administration of the fund shall govern the administration of the coordinated and 
59.25 	basic programs and the provisions of the articles of incorporation and bylaws of the 
59.26 	Duluth Teachers Retirement Fund Association relating to the administration of the fund 
59.27 	shall govern the administration of the new law coordinated program in instances where the 
59.28 	administrative provisions are not inconsistent with the provisions of sections 354A.31 to 
59.29 	354A.41, including but not limited to provisions relating to the composition and function 
59.30 	of the board of trustees, the investment of assets of the St. Paul Teachers Retirement Fund 
59.31 	Association, and the definition of the plan year. The administrative provisions in the 
59.32 	articles of incorporation and the bylaws of the Minneapolis Teachers Retirement Fund 
59.33 	Association pertaining to the granting of pension benefits of the basic and coordinated 
59.34 	programs are no longer in effect after June 30, 2006, and the administrative provisions of 
60.1 	the Duluth Teachers Retirement Fund Association pertaining to retirement benefits of the 
60.2 	old law coordinated program are no longer in effect after June 30, 2015.
60.3 		Subd. 2.Actuarial valuations. In any actuarial valuation of the St. Paul Teachers 
60.4 	Retirement Fund Association, or the Duluth Teachers Retirement Fund Association under 
60.5 	section 356.215 prepared by the actuary retained under section 356.214 or supplemental 
60.6 	actuarial valuation prepared by an approved actuary retained by the St. Paul Teachers 
60.7 	Retirement Fund Association, there shallmust be included a finding of the condition of the 
60.8 	fund showing separately the basic and coordinated programs or the old law coordinated 
60.9 	and new law coordinated programs, as appropriate. The finding shallmust include the level 
60.10 	normal cost and the applicable employee and employer contribution rates for each program.

60.11 	Sec. 30. Minnesota Statutes 2012, section 354B.21, subdivision 3a, is amended to read:
60.12 		Subd. 3a.Plan coverage and election; certain past service technical college 
60.13 	faculty. (a) Notwithstanding subdivision 3, if an employee of the board was employed in 
60.14 	a faculty position in a technical college on June 30, 1997, with coverage by the Teachers 
60.15 	Retirement Association, the employee retains that coverage. If the employee was a 
60.16 	technical college faculty member on June 30, 1995, covered by a first class city teacher 
60.17 	retirement fund established under chapter 354A, the retirement coverage continues with 
60.18 	the Duluth Teachers Retirement Fund Association or the St. Paul Teachers Retirement 
60.19 	Fund Association, whichever is applicable. If the person was a technical college faculty 
60.20 	member on June 30, 1995, covered by the former Minneapolis Teachers Retirement Fund 
60.21 	Association or the former Duluth Teachers Retirement Fund Association, the Teachers 
60.22 	Retirement Association shall provide coverage.
60.23 	(b) An employee under paragraph (a) who has coverage by a first class city 
60.24 	teacherthe St. Paul Teachers Retirement Fund Association retains that coverage for the 
60.25 	duration of the person's employment by the board unless, within one year of a change in 
60.26 	employment within the Minnesota State Colleges and Universities system, the person 
60.27 	elects the individual retirement account plan for all future employment by the board. 
60.28 	The election is irrevocable.

60.29 	Sec. 31. Minnesota Statutes 2012, section 355.01, subdivision 2c, is amended to read:
60.30 		Subd. 2c.Duluth teacher. "Duluth teacher" means a person employed by 
60.31 	Independent School District No. 709, Duluth, who holds a position covered by the Duluth
60.32 	 Teachers Retirement Fund Association established under chapter 354A section 354.73 
60.33 	and section 46.

61.1 	Sec. 32. Minnesota Statutes 2013 Supplement, section 356.20, subdivision 2, is 
61.2 	amended to read:
61.3 		Subd. 2.Covered public pension plans and funds. This section applies to the 
61.4 	following public pension plans:
61.5 	(1) the general state employees retirement plan of the Minnesota State Retirement 
61.6 	System;
61.7 	(2) the general employees retirement plan of the Public Employees Retirement 
61.8 	Association;
61.9 	(3) the Teachers Retirement Association;
61.10 	(4) the State Patrol retirement plan;
61.11 	(5) the St. Paul Teachers Retirement Fund Association;
61.12 	(6) the Duluth Teachers Retirement Fund Association;
61.13 	(7)(6) the University of Minnesota faculty retirement plan;
61.14 	(8)(7) the University of Minnesota faculty supplemental retirement plan;
61.15 	(9)(8) the judges retirement fund;
61.16 	(10)(9) the Bloomington Fire Department Relief Association;
61.17 	(11)(10) a volunteer firefighter relief association governed by section 424A.091;
61.18 	(12)(11) the public employees police and fire plan of the Public Employees 
61.19 	Retirement Association;
61.20 	(13)(12) the correctional state employees retirement plan of the Minnesota State 
61.21 	Retirement System;
61.22 	(14)(13) the local government correctional service retirement plan of the Public 
61.23 	Employees Retirement Association; and
61.24 	(15)(14) the voluntary statewide lump-sum volunteer firefighter retirement plan.

61.25 	Sec. 33. Minnesota Statutes 2013 Supplement, section 356.214, subdivision 1, is 
61.26 	amended to read:
61.27 		Subdivision 1.Actuary retention. (a) The governing board or managing or 
61.28 	administrative official of each public pension plan and retirement fund or plan enumerated 
61.29 	in paragraph (b) shall contract with an established actuarial consulting firm to conduct 
61.30 	annual actuarial valuations and related services. The principal from the actuarial 
61.31 	consulting firm on the contract must be an approved actuary under section 356.215, 
61.32 	subdivision 1, paragraph (c).
61.33 	(b) Actuarial services must include the preparation of actuarial valuations and 
61.34 	related actuarial work for the following retirement plans:
61.35 	(1) the teachers retirement plan, Teachers Retirement Association;
62.1 	(2) the general state employees retirement plan, Minnesota State Retirement System;
62.2 	(3) the correctional employees retirement plan, Minnesota State Retirement System;
62.3 	(4) the State Patrol retirement plan, Minnesota State Retirement System;
62.4 	(5) the judges retirement plan, Minnesota State Retirement System;
62.5 	(6) the general employees retirement plan, Public Employees Retirement 
62.6 	Association, including the MERF division;
62.7 	(7) the public employees police and fire plan, Public Employees Retirement 
62.8 	Association;
62.9 	(8) the Duluth teachers retirement plan, Duluth Teachers Retirement Fund 
62.10 	Association;
62.11 	(9)(8) the St. Paul teachers retirement plan, St. Paul Teachers Retirement Fund 
62.12 	Association;
62.13 	(10)(9) the legislators retirement plan, Minnesota State Retirement System; and
62.14 	(11)(10) the local government correctional service retirement plan, Public 
62.15 	Employees Retirement Association.
62.16 	(c) The actuarial valuation for the legislators retirement plan must include a separate 
62.17 	calculation of total plan actuarial accrued liabilities due to constitutional officer coverage 
62.18 	under section 3A.17.
62.19 	(d) The contracts must require completion of the annual actuarial valuation 
62.20 	calculations on a fiscal year basis, with the contents of the actuarial valuation calculations 
62.21 	as specified in section 356.215, and in conformity with the standards for actuarial work 
62.22 	adopted by the Legislative Commission on Pensions and Retirement.
62.23 	The contracts must require completion of annual experience data collection and 
62.24 	processing and a quadrennial published experience study for the plans listed in paragraph 
62.25 	(b), clauses (1), (2), and (6), as provided for in the standards for actuarial work adopted by 
62.26 	the commission. The experience data collection, processing, and analysis must evaluate 
62.27 	the following:
62.28 	(1) individual salary progression;
62.29 	(2) the rate of return on investments based on the current asset value;
62.30 	(3) payroll growth;
62.31 	(4) mortality;
62.32 	(5) retirement age;
62.33 	(6) withdrawal; and
62.34 	(7) disablement.
62.35 	(e) The actuary shall annually prepare a report to the governing or managing board 
62.36 	or administrative official and the legislature, summarizing the results of the actuarial 
63.1 	valuation calculations. The actuary shall include with the report any recommendations 
63.2 	concerning the appropriateness of the support rates to achieve proper funding of 
63.3 	the retirement plans by the required funding dates. The actuary shall, as part of the 
63.4 	quadrennial experience study, include recommendations on the appropriateness of the 
63.5 	actuarial valuation assumptions required for evaluation in the study.
63.6 	(f) If the actuarial gain and loss analysis in the actuarial valuation calculations 
63.7 	indicates a persistent pattern of sizable gains or losses, the governing or managing board 
63.8 	or administrative official shall direct the actuary to prepare a special experience study for a 
63.9 	plan listed in paragraph (b), clause (3), (4), (5), (7), (8), (9), or (10), or (11), in the manner 
63.10 	provided for in the standards for actuarial work adopted by the commission.

63.11 	Sec. 34. Minnesota Statutes 2013 Supplement, section 356.215, subdivision 8, is 
63.12 	amended to read:
63.13 		Subd. 8.Interest and salary assumptions. (a) The actuarial valuation must use 
63.14 	the applicable following preretirement interest assumption and the applicable following 
63.15 	postretirement interest assumption:
63.16 	(1) select and ultimate interest rate assumption

63.17
63.18
63.19
63.20	plan
	ultimate 
preretirement 
interest rate 
assumption
	ultimate 
postretirement 
interest rate 
assumption
	
63.21	general state employees retirement plan
	 8.5%
	 6.0%
	
63.22	correctional state employees retirement plan
	8.5
	6.0
	
63.23	State Patrol retirement plan
	8.5
	6.0
	
63.24
63.25
63.26	legislators retirement plan, and for the 
constitutional officers calculation of total plan 
liabilities
	 0.0 
	  0.0
	
63.27	judges retirement plan
	8.5
	6.0
	
63.28	general public employees retirement plan
	8.5
	6.0
	
63.29	public employees police and fire retirement plan
	8.5
	6.0
	
63.30
63.31	local government correctional service 
retirement plan
	8.5
	6.0
	
63.32	teachers retirement plan
	8.5
	6.0
	
63.33	Duluth teachers retirement plan
	8.5
	8.5
	
63.34	St. Paul teachers retirement plan
	8.5
	8.5
	
63.35 	Except for the legislators retirement plan and the constitutional officers calculation 
63.36 	of total plan liabilities, the select preretirement interest rate assumption for the period 
63.37 	after June 30, 2012, through June 30, 2017, is 8.0 percent. Except for the legislators 
63.38 	retirement plan and the constitutional officers calculation of total plan liabilities, the select 
63.39 	postretirement interest rate assumption for the period after June 30, 2012, through June 
64.1 	30, 2017, is 5.5 percent, except for the Duluth teachers retirement plan and the St. Paul 
64.2 	teachers retirement plan, each with a select postretirement interest rate assumption for the 
64.3 	period after June 30, 2012, through June 30, 2017, of 8.0 percent.
64.4 	(2) single rate preretirement and postretirement interest rate assumption

64.5
64.6	plan
	interest rate 
assumption
		
64.7	Bloomington Fire Department Relief Association
	6.0
		
64.8
64.9	local monthly benefit volunteer firefighters relief 
associations
	5.0
		
64.10 	(b) The actuarial valuation must use the applicable following single rate future salary 
64.11 	increase assumption, the applicable following modified single rate future salary increase 
64.12 	assumption, or the applicable following graded rate future salary increase assumption:
64.13 	(1) single rate future salary increase assumption

64.14	plan
	future salary increase assumption
	
64.15	legislators retirement plan
		5.0%
	
64.16	judges retirement plan
		3.0 
	
64.17
64.18	Bloomington Fire Department Relief 
Association
		4.0
	
64.19 	(2) age-related future salary increase age-related select and ultimate future salary 
64.20 	increase assumption or graded rate future salary increase assumption

64.21	plan
	future salary increase assumption
	
64.22	local government correctional service retirement plan
	assumption CB
	
64.23	Duluth teachers retirement plan
	assumption A
	
64.24	St. Paul teachers retirement plan
	assumption BA
	
64.25 	For plans other than the DuluthSt. Paul 
64.26 	teachers retirement plan and the local 
64.27 	government correctional service retirement 
64.28 	plan, the select calculation is: during the 
64.29 	designated select period, a designated 
64.30 	percentage rate is multiplied by the result of 
64.31 	the designated integer minus T, where T is the 
64.32 	number of completed years of service, and is 
64.33 	added to the applicable future salary increase 
64.34 	assumption. The designated select period is 
64.35 	ten years and the designated integer is ten 
64.36 	for the Duluth Teachers Retirement Fund 
64.37 	Association and for the local government 
64.38 	correctional service retirement plan and 15 
65.1 	for the St. Paul Teachers Retirement Fund 
65.2 	Association. The designated percentage 
65.3 	rate is 0.2 percent for the St. Paul Teachers 
65.4 	Retirement Fund Association. The select 
65.5 	calculation for the Duluth Teachers 
65.6 	Retirement Fund Association is 8.00 percent 
65.7 	per year for service years one through seven, 
65.8 	7.25 percent per year for service years seven 
65.9 	and eight, and 6.50 percent per year for 
65.10 	service years eight and nine.
65.11 	The ultimate future salary increase assumption is:

65.12	age
	A
	BA
	CB
		
65.13	16
	6.00%
	5.90%
	9.00%
		
65.14	17
	6.00
	5.90
	9.00
		
65.15	18
	6.00
	5.90
	9.00
		
65.16	19
	6.00
	5.90
	9.00
		
65.17	20
	6.00
	5.90
	9.00
		
65.18	21
	6.00
	5.90
	8.75
		
65.19	22
	6.00
	5.90
	8.50
		
65.20	23
	6.00
	5.85
	8.25
		
65.21	24
	6.00
	5.80
	8.00
		
65.22	25
	6.00
	5.75
	7.75
		
65.23	26
	6.00
	5.70
	7.50
		
65.24	27
	6.00
	5.65
	7.25
		
65.25	28
	6.00
	5.60
	7.00
		
65.26	29
	6.00
	5.55
	6.75
		
65.27	30
	6.00
	5.50
	6.75
		
65.28	31
	6.00
	5.45
	6.50
		
65.29	32
	6.00
	5.40
	6.50
		
65.30	33
	6.00
	5.35
	6.50
		
65.31	34
	6.00
	5.30
	6.25
		
65.32	35
	6.00
	5.25
	6.25
		
65.33	36
	5.86
	5.20
	6.00
		
65.34	37
	5.73
	5.15
	6.00
		
65.35	38
	5.59
	5.10
	6.00
		
65.36	39
	5.45
	5.05
	5.75
		
65.37	40
	5.31
	5.00
	5.75
		
65.38	41
	5.18
	4.95
	5.75
		
65.39	42
	5.04
	4.90
	5.50
		
65.40	43
	4.90
	4.85
	5.25
		
65.41	44
	4.76
	4.80
	5.25
		
66.1	45
	4.63
	4.75
	5.00
		
66.2	46
	4.49
	4.70
	5.00
		
66.3	47
	4.35
	4.65
	5.00
		
66.4	48
	4.21
	4.60
	5.00
		
66.5	49
	4.08
	4.55
	5.00
		
66.6	50
	3.94
	4.50
	5.00
		
66.7	51
	3.80
	4.45
	5.00
		
66.8	52
	3.66
	4.40
	5.00
		
66.9	53
	3.53
	4.35
	5.00
		
66.10	54
	3.39
	4.30
	5.00
		
66.11	55
	3.25
	4.25
	4.75
		
66.12	56
	3.25
	4.20
	4.75
		
66.13	57
	3.25
	4.15
	4.50
		
66.14	58
	3.25
	4.10
	4.25
		
66.15	59
	3.25
	4.05
	4.25
		
66.16	60
	3.25
	4.00
	4.25
		
66.17	61
	3.25
	4.00
	4.25
		
66.18	62
	3.25
	4.00
	4.25
		
66.19	63
	3.25
	4.00
	4.25
		
66.20	64
	3.25
	4.00
	4.25
		
66.21	65
	3.25
	4.00
	4.00
		
66.22	66
	3.25
	4.00
	4.00
		
66.23	67
	3.25
	4.00
	4.00
		
66.24	68
	3.25
	4.00
	4.00
		
66.25	69
	3.25
	4.00
	4.00
		
66.26	70
	3.25
	4.00
	4.00
		
66.27 	(3) service-related ultimate future salary increase assumption

66.28
66.29	general state employees retirement plan of the 
Minnesota State Retirement System
	assumption A
	
66.30
66.31	general employees retirement plan of the Public 
Employees Retirement Association
	assumption B
	
66.32	Teachers Retirement Association
	assumption C
	
66.33	public employees police and fire retirement plan
	assumption D
	
66.34	State Patrol retirement plan
	assumption E
	
66.35
66.36	correctional state employees retirement plan of the 
Minnesota State Retirement System
	assumption F

66.37
66.38	service 
length
	A
	B
	C
	D
	E
	F
	
66.39	1
	10.50%
	12.03%
	12.00%
	13.00%
	8.00%
	6.00%
	
66.40	2
	8.10
	8.90
	9.00
	11.00
	7.50
	5.85
	
66.41	3
	6.90
	7.46
	8.00
	9.00
	7.00
	5.70
	
66.42	4
	6.20
	6.58
	7.50
	8.00
	6.75
	5.55
	
66.43	5
	5.70
	5.97
	7.25
	6.50
	6.50
	5.40
	
67.1	6
	5.30
	5.52
	7.00
	6.10
	6.25
	5.25
	
67.2	7
	5.00
	5.16
	6.85
	5.80
	6.00
	5.10
	
67.3	8
	4.70
	4.87
	6.70
	5.60
	5.85
	4.95
	
67.4	9
	4.50
	4.63
	6.55
	5.40
	5.70
	4.80
	
67.5	10
	4.40
	4.42
	6.40
	5.30
	5.55
	4.65
	
67.6	11
	4.20
	4.24
	6.25
	5.20
	5.40
	4.55
	
67.7	12
	4.10
	4.08
	6.00
	5.10
	5.25
	4.45
	
67.8	13
	4.00
	3.94
	5.75
	5.00
	5.10
	4.35
	
67.9	14
	3.80
	3.82
	5.50
	4.90
	4.95
	4.25
	
67.10	15
	3.70
	3.70
	5.25
	4.80
	4.80
	4.15
	
67.11	16
	3.60
	3.60
	5.00
	4.80
	4.65
	4.05
	
67.12	17
	3.50
	3.51
	4.75
	4.80
	4.50
	3.95
	
67.13	18
	3.50
	3.50
	4.50
	4.80
	4.35
	3.85
	
67.14	19
	3.50
	3.50
	4.25
	4.80
	4.20
	3.75
	
67.15	20
	3.50
	3.50
	4.00
	4.80
	4.05
	3.75
	
67.16	21
	3.50
	3.50
	3.90
	4.70
	4.00
	3.75
	
67.17	22
	3.50
	3.50
	3.80
	4.60
	4.00
	3.75
	
67.18	23
	3.50
	3.50
	3.70
	4.50
	4.00
	3.75
	
67.19	24
	3.50
	3.50
	3.60
	4.50
	4.00
	3.75
	
67.20	25
	3.50
	3.50
	3.50
	4.50
	4.00
	3.75
	
67.21	26
	3.50
	3.50
	3.50
	4.50
	4.00
	3.75
	
67.22	27
	3.50
	3.50
	3.50
	4.50
	4.00
	3.75
	
67.23	28
	3.50
	3.50
	3.50
	4.50
	4.00
	3.75
	
67.24	29
	3.50
	3.50
	3.50
	4.50
	4.00
	3.75
	
67.25	30 or more
	3.50
	3.50
	3.50
	4.50
	4.00
	3.75
	
67.26 	(c) The actuarial valuation must use the applicable following payroll growth 
67.27 	assumption for calculating the amortization requirement for the unfunded actuarial 
67.28 	accrued liability where the amortization retirement is calculated as a level percentage 
67.29 	of an increasing payroll:

67.30	plan
	payroll growth assumption
	
67.31
67.32	general state employees retirement plan of the 
Minnesota State Retirement System
	3.75%
	
67.33	correctional state employees retirement plan
	3.75
	
67.34	State Patrol retirement plan
	3.75
	
67.35	judges retirement plan
	3.00
	
67.36
67.37	general employees retirement plan of the Public 
Employees Retirement Association
	3.75
	
67.38	public employees police and fire retirement plan
	3.75
	
67.39	local government correctional service retirement plan
	3.75
	
67.40	teachers retirement plan
	3.75
	
67.41	Duluth teachers retirement plan
	3.50
	
67.42	St. Paul teachers retirement plan
	4.00
	
68.1 	(d) The assumptions set forth in paragraphs (b) and (c) continue to apply, unless a 
68.2 	different salary assumption or a different payroll increase assumption:
68.3 	(1) has been proposed by the governing board of the applicable retirement plan;
68.4 	(2) is accompanied by the concurring recommendation of the actuary retained under 
68.5 	section 356.214, subdivision 1, if applicable, or by the approved actuary preparing the 
68.6 	most recent actuarial valuation report if section 356.214 does not apply; and
68.7 	(3) has been approved or deemed approved under subdivision 18.

68.8 	Sec. 35. Minnesota Statutes 2013 Supplement, section 356.219, subdivision 8, is 
68.9 	amended to read:
68.10 		Subd. 8.Timing of reports. (a) For the Bloomington Fire Department Relief 
68.11 	Association and the volunteer firefighter relief associations, the information required 
68.12 	under this section must be submitted by the due date for reports required under section 
68.13 	69.051, subdivision 1 or 1a, as applicable. If a relief association satisfies the definition of 
68.14 	a fully invested plan under subdivision 1, paragraph (b), for the calendar year covered 
68.15 	by the report required under section 69.051, subdivision 1 or 1a, as applicable, the chief 
68.16 	administrative officer of the covered pension plan shall certify that compliance on a form 
68.17 	prescribed by the state auditor. The state auditor shall transmit annually to the State Board 
68.18 	of Investment a list or lists of covered pension plans which submitted certifications in 
68.19 	order to facilitate reporting by the State Board of Investment under paragraph (c).
68.20 	(b) For the St. Paul Teachers Retirement Fund Association, the Duluth Teachers 
68.21 	Retirement Fund Association, and the University of Minnesota faculty supplemental 
68.22 	retirement plan, the information required under this section must be submitted to the state 
68.23 	auditor by June 1 of each year.
68.24 	(c) The State Board of Investment, on behalf of pension funds specified in 
68.25 	subdivision 1, paragraph (c), mustshall report information required under this section by 
68.26 	September 1 of each year.

68.27 	Sec. 36. Minnesota Statutes 2013 Supplement, section 356.30, subdivision 3, is 
68.28 	amended to read:
68.29 		Subd. 3.Covered plans. This section applies to the following retirement plans:
68.30 	(1) the general state employees retirement plan of the Minnesota State Retirement 
68.31 	System, established under chapter 352;
68.32 	(2) the correctional state employees retirement plan of the Minnesota State 
68.33 	Retirement System, established under chapter 352;
68.34 	(3) the unclassified employees retirement program, established under chapter 352D;
69.1 	(4) the State Patrol retirement plan, established under chapter 352B;
69.2 	(5) the legislators retirement plan, established under chapter 3A, including 
69.3 	constitutional officers as specified in that chapter;
69.4 	(6) the general employees retirement plan of the Public Employees Retirement 
69.5 	Association, established under chapter 353, including the MERF division of the Public 
69.6 	Employees Retirement Association;
69.7 	(7) the public employees police and fire retirement plan of the Public Employees 
69.8 	Retirement Association, established under chapter 353;
69.9 	(8) the local government correctional service retirement plan of the Public 
69.10 	Employees Retirement Association, established under chapter 353E;
69.11 	(9) the Teachers Retirement Association, established under chapter 354;
69.12 	(10) the St. Paul Teachers Retirement Fund Association, established under chapter 
69.13 	354A; and
69.14 	(11) the Duluth Teachers Retirement Fund Association, established under chapter 
69.15 	354A; and
69.16 	(12)(11) the judges retirement fund, established by chapter 490.

69.17 	Sec. 37. Minnesota Statutes 2012, section 356.302, subdivision 7, is amended to read:
69.18 		Subd. 7.Covered retirement plans. This section applies to the following 
69.19 	retirement plans:
69.20 	(1) the general state employees retirement plan of the Minnesota State Retirement 
69.21 	System, established by chapter 352;
69.22 	(2) the unclassified state employees retirement program of the Minnesota State 
69.23 	Retirement System, established by chapter 352D;
69.24 	(3) the general employees retirement plan of the Public Employees Retirement 
69.25 	Association, established by chapter 353, including the MERF division of the Public 
69.26 	Employees Retirement Association;
69.27 	(4) the Teachers Retirement Association, established by chapter 354;
69.28 	(5) the Duluth Teachers Retirement Fund Association, established by chapter 354A;
69.29 	(6)(5) the St. Paul Teachers Retirement Fund Association, established by chapter 
69.30 	354A;
69.31 	(7)(6) the state correctional employees retirement plan of the Minnesota State 
69.32 	Retirement System, established by chapter 352;
69.33 	(8)(7) the State Patrol retirement plan, established by chapter 352B;
69.34 	(9)(8) the public employees police and fire plan of the Public Employees Retirement 
69.35 	Association, established by chapter 353;
70.1 	(10)(9) the local government correctional service retirement plan of the Public 
70.2 	Employees Retirement Association, established by chapter 353E; and
70.3 	(11)(10) the judges retirement plan, established by chapter 490.

70.4 	Sec. 38. Minnesota Statutes 2012, section 356.303, subdivision 4, is amended to read:
70.5 		Subd. 4.Covered retirement plans. This section applies to the following 
70.6 	retirement plans:
70.7 	(1) the legislators retirement plan, established by chapter 3A;
70.8 	(2) the general state employees retirement plan of the Minnesota State Retirement 
70.9 	System, established by chapter 352;
70.10 	(3) the correctional state employees retirement plan of the Minnesota State 
70.11 	Retirement System, established by chapter 352;
70.12 	(4) the State Patrol retirement plan, established by chapter 352B;
70.13 	(5) the elective state officers retirement plan, established by chapter 352C;
70.14 	(6) the unclassified state employees retirement program, established by chapter 352D;
70.15 	(7) the general employees retirement plan of the Public Employees Retirement 
70.16 	Association, established by chapter 353, including the MERF division of the Public 
70.17 	Employees Retirement Association;
70.18 	(8) the public employees police and fire plan of the Public Employees Retirement 
70.19 	Association, established by chapter 353;
70.20 	(9) the local government correctional service retirement plan of the Public 
70.21 	Employees Retirement Association, established by chapter 353E;
70.22 	(10) the Teachers Retirement Association, established by chapter 354;
70.23 	(11) the Duluth Teachers Retirement Fund Association, established by chapter 354A;
70.24 	(12)(11) the St. Paul Teachers Retirement Fund Association, established by chapter 
70.25 	354A; and
70.26 	(13)(12) the judges retirement fund, established by chapter 490.

70.27 	Sec. 39. Minnesota Statutes 2012, section 356.32, subdivision 2, is amended to read:
70.28 		Subd. 2.Covered retirement plans. The provisions of this section apply to the 
70.29 	following retirement plans:
70.30 	(1) the general state employees retirement plan of the Minnesota State Retirement 
70.31 	System, established under chapter 352;
70.32 	(2) the correctional state employees retirement plan of the Minnesota State 
70.33 	Retirement System, established under chapter 352;
70.34 	(3) the State Patrol retirement plan, established under chapter 352B;
71.1 	(4) the general employees retirement plan of the Public Employees Retirement 
71.2 	Association, established under chapter 353, including the MERF division of the Public 
71.3 	Employees Retirement Association;
71.4 	(5) the public employees police and fire plan of the Public Employees Retirement 
71.5 	Association, established under chapter 353;
71.6 	(6) the Teachers Retirement Association, established under chapter 354; and
71.7 	(7) the Duluth Teachers Retirement Fund Association, established under chapter 
71.8 	354A; and
71.9 	(8)(7) the St. Paul Teachers Retirement Fund Association, established under chapter 
71.10 	354A.

71.11 	Sec. 40. Minnesota Statutes 2013 Supplement, section 356.401, subdivision 3, is 
71.12 	amended to read:
71.13 		Subd. 3.Covered retirement plans. The provisions of this section apply to the 
71.14 	following retirement plans:
71.15 	(1) the legislators retirement plan, established by chapter 3A, including constitutional 
71.16 	officers as specified in that chapter;
71.17 	(2) the general state employees retirement plan of the Minnesota State Retirement 
71.18 	System, established by chapter 352;
71.19 	(3) the correctional state employees retirement plan of the Minnesota State 
71.20 	Retirement System, established by chapter 352;
71.21 	(4) the State Patrol retirement plan, established by chapter 352B;
71.22 	(5) the unclassified state employees retirement program, established by chapter 352D;
71.23 	(6) the general employees retirement plan of the Public Employees Retirement 
71.24 	Association, established by chapter 353, including the MERF division of the Public 
71.25 	Employees Retirement Association;
71.26 	(7) the public employees police and fire plan of the Public Employees Retirement 
71.27 	Association, established by chapter 353;
71.28 	(8) the public employees defined contribution plan, established by chapter 353D;
71.29 	(9) the local government correctional service retirement plan of the Public 
71.30 	Employees Retirement Association, established by chapter 353E;
71.31 	(10) the voluntary statewide lump-sum volunteer firefighter retirement plan, 
71.32 	established by chapter 353G;
71.33 	(11) the Teachers Retirement Association, established by chapter 354;
71.34 	(12) the Duluth Teachers Retirement Fund Association, established by chapter 354A;
72.1 	(13)(12) the St. Paul Teachers Retirement Fund Association, established by chapter 
72.2 	354A;
72.3 	(14)(13) the individual retirement account plan, established by chapter 354B;
72.4 	(15)(14) the higher education supplemental retirement plan, established by chapter 
72.5 	354C; and
72.6 	(16)(15) the judges retirement fund, established by chapter 490.

72.7 	Sec. 41. Minnesota Statutes 2012, section 356.42, subdivision 3, is amended to read:
72.8 		Subd. 3.Covered retirement plans. The postretirement adjustment provided in 
72.9 	this section applies to the following retirement funds:
72.10 	(1) the general employees retirement plans of the Public Employees Retirement 
72.11 	Association;
72.12 	(2) the public employees police and fire plan of the Public Employees Retirement 
72.13 	Association;
72.14 	(3) the teachers retirement association;
72.15 	(4) the State Patrol retirement plan;
72.16 	(5) the state employees retirement plan of the Minnesota State Retirement System;
72.17 	 and
72.18 	(6) the St. Paul Teachers Retirement Fund Association established under chapter 
72.19 	354A; and.
72.20 	(7) the Duluth Teachers Retirement Fund Association established under chapter 
72.21 	354A.

72.22 	Sec. 42. Minnesota Statutes 2012, section 356.465, subdivision 3, is amended to read:
72.23 		Subd. 3.Covered retirement plans. The provisions of this section apply to the 
72.24 	following retirement plans:
72.25 	(1) the general state employees retirement plan of the Minnesota State Retirement 
72.26 	System established under chapter 352;
72.27 	(2) the correctional state employees retirement plan of the Minnesota State 
72.28 	Retirement System established under chapter 352;
72.29 	(3) the State Patrol retirement plan established under chapter 352B;
72.30 	(4) the legislators retirement plan established under chapter 3A;
72.31 	(5) the judges retirement plan established under chapter 490;
72.32 	(6) the general employees retirement plan of the Public Employees Retirement 
72.33 	Association established under chapter 353, including the MERF division of the Public 
72.34 	Employees Retirement Association;
73.1 	(7) the public employees police and fire plan of the Public Employees Retirement 
73.2 	Association established under chapter 353;
73.3 	(8) the teachers retirement plan established under chapter 354;
73.4 	(9) the Duluth Teachers Retirement Fund Association established under chapter 
73.5 	354A;
73.6 	(10)(9) the St. Paul Teachers Retirement Fund Association established under 
73.7 	chapter 354A; and
73.8 	(11)(10) the local government correctional service retirement plan of the Public 
73.9 	Employees Retirement Association established under chapter 353E.

73.10 	Sec. 43. Minnesota Statutes 2012, section 356.47, subdivision 3, is amended to read:
73.11 		Subd. 3.Payment. (a) Beginning one year after the reemployment withholding 
73.12 	period ends relating to the reemployment that gave rise to the limitation, and the filing of a 
73.13 	written application, the retired member is entitled to the payment, in a lump sum, of the 
73.14 	value of the person's amount under subdivision 2, plus annual compound interest. For the 
73.15 	general state employees retirement plan, the correctional state employees retirement plan, 
73.16 	the general employees retirement plan of the Public Employees Retirement Association, 
73.17 	the public employees police and fire retirement plan, the local government correctional 
73.18 	employees retirement plan, and the teachers retirement plan, the annual interest rate is 
73.19 	six percent from the date on which the amount was deducted from the retirement annuity 
73.20 	to the date of payment or until January 1, 2011, whichever is earlier, and no interest 
73.21 	after January 1, 2011. For the Duluth Teachers Retirement Fund Association, the annual 
73.22 	interest is six percent from the date on which the amount was deducted from the retirement 
73.23 	annuity to the date of payment or until June 30, 2010, whichever is earlier, and with 
73.24 	no interest accrual after June 30, 2010. For the St. Paul Teachers Retirement Fund 
73.25 	Association, the annual interest is the rate of six percent from the date that the amount was 
73.26 	deducted from the retirement annuity to the date of payment or June 30, 2011, whichever 
73.27 	is earlier, and with no interest accrual after June 30, 2011.
73.28 	(b) The written application must be on a form prescribed by the chief administrative 
73.29 	officer of the applicable retirement plan.
73.30 	(c) If the retired member dies before the payment provided for in paragraph (a) is 
73.31 	made, the amount is payable, upon written application, to the deceased person's surviving 
73.32 	spouse, or if none, to the deceased person's designated beneficiary, or if none, to the 
73.33 	deceased person's estate.
73.34 	(d) In lieu of the direct payment of the person's amount under subdivision 2, on 
73.35 	or after the payment date under paragraph (a), if the federal Internal Revenue Code so 
74.1 	permits, the retired member may elect to have all or any portion of the payment amount 
74.2 	under this section paid in the form of a direct rollover to an eligible retirement plan as 
74.3 	defined in section 402(c) of the federal Internal Revenue Code that is specified by the 
74.4 	retired member. If the retired member dies with a balance remaining payable under this 
74.5 	section, the surviving spouse of the retired member, or if none, the deceased person's 
74.6 	designated beneficiary, or if none, the administrator of the deceased person's estate may 
74.7 	elect a direct rollover under this paragraph.

74.8 	Sec. 44. Minnesota Statutes 2012, section 356.99, subdivision 1, is amended to read:
74.9 		Subdivision 1.Definitions. (a) For purposes of this section, the terms in paragraphs 
74.10 	(b) to (e) have the meanings given them.
74.11 	(b) "Chief administrative officer" means the person selected or elected by the 
74.12 	governing board of a covered pension plan with primary responsibility to administer the 
74.13 	covered pension plan, or that person's designee or representative.
74.14 	(c) "Covered pension plan" means a plan enumerated in section 356.30, subdivision 
74.15 	3, except clauses (3), (5), and (6).
74.16 	(d) "Governing board" means the governing board of the Minnesota State Retirement 
74.17 	System, the Public Employees Retirement Association, the Teachers Retirement 
74.18 	Association, the Duluth Teachers Retirement Fund Association, or the St. Paul Teachers 
74.19 	Retirement Fund Association.
74.20 	(e) "Member" means an active plan member in a covered pension plan.

74.21 	Sec. 45. Minnesota Statutes 2013 Supplement, section 423A.02, subdivision 3, is 
74.22 	amended to read:
74.23 		Subd. 3.Reallocation of amortization state aid. (a) Seventy percent of the 
74.24 	difference between $5,720,000 and the current year amortization aid distributed under 
74.25 	subdivision 1 that is not distributed for any reason to a municipality must be distributed 
74.26 	by the commissioner of revenue according to this paragraph. The commissioner shall 
74.27 	distribute 5060 percent of the amounts derived under this paragraph to the Teachers 
74.28 	Retirement Association, ten percent to the Duluth Teachers Retirement Fund Association,
74.29 	 and 40 percent to the St. Paul Teachers Retirement Fund Association to fund the unfunded 
74.30 	actuarial accrued liabilities of the respective funds. These payments must be made on July 
74.31 	15 each fiscal year. If the St. Paul Teachers Retirement Fund Association or the Duluth 
74.32 	Teachers Retirement Fund Association becomes fully funded, the association's eligibility 
74.33 	for its portion of this aid ceases. Amounts remaining in the undistributed balance account 
74.34 	at the end of the biennium if aid eligibility ceases cancel to the general fund.
75.1 	(b) In order to receive amortization aid under paragraph (a), before June 30 annually 
75.2 	Independent School District No. 625, St. Paul, must make an additional contribution of 
75.3 	$800,000 each year to the St. Paul Teachers Retirement Fund Association.
75.4 	(c) Thirty percent of the difference between $5,720,000 and the current year 
75.5 	amortization aid under subdivision 1a that is not distributed for any reason to a 
75.6 	municipality must be distributed under section 69.021, subdivision 7, paragraph (d), as 
75.7 	additional funding to support a minimum fire state aid amount for volunteer firefighter 
75.8 	relief associations.

75.9 	Sec. 46. CONSOLIDATION OF DULUTH TEACHERS RETIREMENT FUND 
75.10 	ASSOCIATION.
 75.11 		Subdivision 1.Membership transfer. All active, inactive, and retired members 
75.12 	of the Duluth Teachers Retirement Fund Association are transferred to the Teachers 
75.13 	Retirement Association and are no longer members of the Duluth Teachers Retirement 
75.14 	Fund Association as of July 1, 2015.
75.15 		Subd. 2.Teachers Retirement Association membership. A person first hired as a 
75.16 	teacher by Independent School District No. 709, Duluth, after June 30, 2015, and who is a 
75.17 	teacher as defined in Minnesota Statutes, section 354.05, subdivision 2, is a member of the 
75.18 	Teachers Retirement Association for the person's subsequent teaching service.
75.19 		Subd. 3.Service credit and liability transfer. All allowable service and salary 
75.20 	credit of the members and other individuals transferred under subdivision 1 as specified 
75.21 	in the records of the Duluth Teachers Retirement Fund Association as of June 30, 2015, 
75.22 	is allowable service credit under Minnesota Statutes, section 354.05, subdivision 13, 
75.23 	formula service credit under Minnesota Statutes, section 354.05, subdivision 25, and 
75.24 	salary credit under Minnesota Statutes, section 354.05, subdivision 35, for the Teachers 
75.25 	Retirement Association.
75.26 		Subd. 4.Transfer of records. On or before June 30, 2015, the chief administrative 
75.27 	officer of the Duluth Teachers Retirement Fund Association shall transfer all records and 
75.28 	documents relating to the funds and the benefit plans of the association to the executive 
75.29 	director of the Teachers Retirement Association. To the extent possible, original copies of 
75.30 	all records and documents must be transferred.
75.31 		Subd. 5.Transfer of assets. (a) On or before December 31, 2014, the chief 
75.32 	administrative officer of the Duluth Teachers Retirement Fund Association shall transfer 
75.33 	to the State Board of Investment for investment under Minnesota Statutes, section 11A.14, 
75.34 	the entire assets of the special retirement fund, except for direct real estate holdings, of the 
75.35 	Duluth Teachers Retirement Fund Association.
76.1 	(b) By August 1, 2014, the chief administrative officer of the Duluth Teachers 
76.2 	Retirement Fund Association must provide to the State Board of Investment a list of 
76.3 	assets that are intended to be transferred.
76.4 	(c) The executive director of the State Board of Investment shall review the assets 
76.5 	and determine which assets are not in compliance with the requirements and limitations 
76.6 	set forth in Minnesota Statutes, sections 11A.09, 11A.14, 11A.23, and 11A.24, or are not 
76.7 	appropriate for retention under the established investment objectives of the State Board of 
76.8 	Investment. Within 30 days of the date on which the asset transfer occurred, the executive 
76.9 	director of the State Board of Investment shall provide the chief administrative officer of 
76.10 	the Duluth Teachers Retirement Fund Association with a list of assets that are acceptable 
76.11 	for transfer and a list of assets that are noncompliant or inappropriate. Acceptable assets, 
76.12 	including cash, must be transferred at market value, and transfers may begin upon the 
76.13 	transfer of legal title and notification by the chief administrative officer of the Duluth 
76.14 	Teachers Retirement Fund Association to the State Board of Investment.
76.15 	(d) Assets deemed to be noncompliant or inappropriate must be retained by the 
76.16 	Duluth Teachers Retirement Fund Association. Within 30 days of receipt of the list of 
76.17 	noncompliant or inappropriate assets, the chief administrative officer of the Duluth 
76.18 	Teachers Retirement Fund Association must provide the executive director of the State 
76.19 	Board of Investment with evidence that the chief administrative officer of the Duluth 
76.20 	Teachers Retirement Fund Association is taking action to convert noncompliant or 
76.21 	inappropriate assets to acceptable assets.
76.22 	(e) Beginning January 1, 2015, the executive director of the State Board of 
76.23 	Investment is authorized to direct the process of transferring legal title of assets for which 
76.24 	such change is deemed necessary.
76.25 	(f) On June 30, 2015, the remaining assets of the special retirement fund of the 
76.26 	Duluth Teachers Retirement Fund Association are transferred to the State Board of 
76.27 	Investment at market values determined by the executive director of the State Board of 
76.28 	Investment. Legal title to transferred assets vests with the State Board of Investment 
76.29 	on behalf of the Teachers Retirement Association. The transfer of the assets of the 
76.30 	Duluth Teachers Retirement Fund Association special retirement fund must include any 
76.31 	investment-related accounts receivable that are determined by the executive director 
76.32 	of the State Board of Investment as reasonably capable of being collected and any 
76.33 	non-investment-related accounts receivable that are determined by the executive director 
76.34 	of the Teachers Retirement Association as reasonably capable of being collected. For 
76.35 	accounts receivable that are determined as not reasonably capable of being collected, legal 
76.36 	title to the account transfers to Independent School District No. 709, Duluth, as of the 
77.1 	date of the determination of the executive director of the State Board of Investment and 
77.2 	the executive director of the Teachers Retirement Association. If the accounts receivable 
77.3 	transferred to Independent School District No. 709, Duluth, are subsequently recovered 
77.4 	by the school district, the superintendent of Independent School District No. 709, Duluth, 
77.5 	shall transfer the recovered amount to the executive director of the Teachers Retirement 
77.6 	Association, in cash, for deposit in the teachers retirement fund, less the reasonable 
77.7 	expenses of the school district related to the recovery. If the board of trustees of the Duluth 
77.8 	Teachers Retirement Fund Association establishes a liquidating trust and deposits any of 
77.9 	the retirement fund association assets in that trust or if the legislative auditor determines 
77.10 	that the transferred assets were in an amount less than the full assets of the retirement fund 
77.11 	association other than assets in the tax sheltered annuity program on the date of transfer as 
77.12 	specified in paragraph (g), the amount of any untransferred assets are a claim against the 
77.13 	state aid otherwise payable to Independent School District No. 709, Duluth, payable to the 
77.14 	Teachers Retirement Association by the commissioner of management and budget upon 
77.15 	request by the executive director of the Teachers Retirement Association.
77.16 	(g) As of June 30, 2015, assets of the special retirement fund, except for direct real 
77.17 	estate holdings, of the Duluth Teachers Retirement Fund Association are assets of the 
77.18 	Teachers Retirement Association to be invested by the State Board of Investment under 
77.19 	Minnesota Statutes, section 354.07, subdivision 4.
77.20 		Subd. 6.Termination of Duluth Teachers Retirement Fund Association special 
77.21 	retirement fund. (a) As of June 30, 2015, the Duluth Teachers Retirement Fund 
77.22 	Association as a public retirement plan and its special retirement fund ceases to exist.
77.23 	(b) Contracts, records, and obligations of the Duluth Teachers Retirement Fund 
77.24 	Association special retirement fund existing at the time of consolidation with the Teachers 
77.25 	Retirement Association are transferred to the Teachers Retirement Association under 
77.26 	Minnesota Statutes, section 15.039, subdivisions 5 and 5a, except that contracts, records, 
77.27 	and obligations of the Duluth Teachers Retirement Fund Association special retirement 
77.28 	fund related to investment and safekeeping of assets are transferred to the State Board 
77.29 	of Investment under Minnesota Statutes, section 15.039, subdivisions 5 and 5a. The 
77.30 	State Board of Investment has the authority to pay the investment-related liabilities 
77.31 	and obligations from the assets transferred from the Duluth Teachers Retirement Fund 
77.32 	Association incurred by the Teachers Retirement Association. The legislative auditor shall 
77.33 	audit the Duluth Teachers Retirement Fund Association for the fiscal year ending June 30, 
77.34 	2015, as part of the Teachers Retirement Association board's annual financial reporting 
77.35 	requirements under Minnesota Statutes, section 356.20. The board of trustees of the 
77.36 	Teachers Retirement Association may authorize and contract with either the legislative 
78.1 	auditor or the state auditor to perform other audit services. Between April 1, 2015, and 
78.2 	June 30, 2015, the Duluth Teachers Retirement Fund Association cannot incur a new or 
78.3 	additional enforceable contractual liability or obligation without approval of the executive 
78.4 	director of the Teachers Retirement Association.

78.5 	Sec. 47. DULUTH TEACHERS RETIREMENT FUND ASSOCIATION 
78.6 	EMPLOYEES.
 78.7 	Effective June 30, 2015, the employees of the Duluth Teachers Retirement 
78.8 	Fund Association have their employment with the Duluth Teachers Retirement Fund 
78.9 	Association terminated and, effective July 1, 2015, unless the former employee elects 
78.10 	otherwise, the Duluth Teachers Retirement Fund Association employees, excluding the 
78.11 	Executive Director, become employees of the Teachers Retirement Association.  The 
78.12 	commissioner of management and budget shall place employees from the former Duluth 
78.13 	Teachers Retirement Fund Association into state service in their proper classifications, 
78.14 	except that employees are appointed without examination and must be compensated at no 
78.15 	less than their current hourly salary rate. Employees must have their accumulated, but 
78.16 	unused, vacation leave balance as of June 30, 2015, posted to their credit by the Teachers 
78.17 	Retirement Association, but if the employee has vacation time in excess of the applicable 
78.18 	maximum, no additional vacation may accrue until the employee's balance falls below 
78.19 	the maximum permitted by the state for the employee's position. The employees must 
78.20 	receive length of service credit for vacation leave accrual for time served at the Duluth 
78.21 	Teachers Retirement Fund Association. Duluth Teachers Retirement Fund Association 
78.22 	employees who become employees of the Teachers Retirement Association effective on 
78.23 	July 1, 2015, must be considered to have completed six months of continuous service 
78.24 	for vacation use purposes. Employees of the former Duluth Teachers Retirement Fund 
78.25 	Association appointed to the classified service are subject to a probationary period under 
78.26 	the collective bargaining agreement or compensation plan applicable to the employee's 
78.27 	position at the Teachers Retirement Association. Effective July 1, 2015, all transferred 
78.28 	employees must be enrolled in the state employees' group insurance program as provided 
78.29 	in Minnesota Statutes, sections 43A.22 to 43A.31, and the commissioner of management 
78.30 	and budget shall provide open enrollment in all state employee health and dental insurance 
78.31 	plans with no limitation on preexisting conditions except as specified in existing state 
78.32 	employee certificates of coverage. The commissioner of management and budget shall 
78.33 	provide these transferred employees with the opportunity to purchase optional life and 
78.34 	disability insurance as provided by the state group insurance program in accordance with 
78.35 	the policies of management and budget.

79.1 	Sec. 48.  REPEALER.
 79.2 	(a) Minnesota Statutes 2012, sections 354A.021, subdivision 5; 354A.108; 354A.24; 
79.3 	and 354A.27, subdivision 5, are repealed.
79.4 	(b) Minnesota Statutes 2013 Supplement, sections 354A.27, subdivisions 6a and 7; 
79.5 	and 354A.31, subdivision 4a, are repealed.

79.6 	Sec. 49. EFFECTIVE DATE.
 79.7 	(a) Section 8, subdivision 1, and section 22 are effective July 1, 2014. Section 46, 
79.8 	subdivision 5, is effective October 1, 2014. Sections 1 to 7, 8, subdivisions 2 and 3, 9 to 
79.9 	14, 16 to 21, 23 to 45, 46, subdivisions 1 to 4 and 6, 47, and 48, are effective June 30, 
79.10 	2015, if the following approve the consolidation provisions before October 1, 2014:
79.11 	(1) the board of trustees of the Duluth Teachers Retirement Fund Association;
79.12 	(2) the membership of the Duluth Teachers Retirement Fund Association; and
79.13 	(3) the board of trustees of the Teachers Retirement Association.
79.14 	(b) An approval under paragraph (a) must be provided in a timely manner in 
79.15 	compliance with Minnesota Statutes, section 645.021, subdivisions 2 and 3, to the secretary 
79.16 	of state, the state auditor, the legislative auditor, and the revisor of statutes by the chief 
79.17 	administrative officer of the Duluth Teachers Retirement Fund Association for an approval 
79.18 	under paragraph (a) by the board of trustees of the Duluth Teachers Retirement Fund 
79.19 	Association or by the membership of the Duluth Teachers Retirement Fund Association and 
79.20 	by the chief administrative officer of the Teachers Retirement Association for an approval 
79.21 	under paragraph (a) by the board of trustees of the Teachers Retirement Association.

79.22 	ARTICLE 7
79.23 	FIRST CLASS CITY TEACHER RETIREMENT FUND 
79.24 	ASSOCIATION CHANGES

79.25 	Section 1. Minnesota Statutes 2013 Supplement, section 354A.12, subdivision 3a, 
79.26 	is amended to read:
79.27 		Subd. 3a.Special Direct state aid to first class city teachers retirement fund 
79.28 	associations. (a) The state shall pay $346,000 as special direct state aid to the Duluth 
79.29 	Teachers Retirement Fund Association and $2,827,000 to the St. Paul Teachers Retirement 
79.30 	Fund Association.
79.31 	(b) In addition to other amounts specified in this subdivision, the state shall pay 
79.32 	$7,000,000 as state aid to the St. Paul Teachers Retirement Fund Association.
79.33 	(b)(c) The aids under this subdivision are payable October 1 annually. The 
79.34 	commissioner of management and budget shall pay the aids specified in this subdivision. 
80.1 	The amounts required are appropriated annually from the general fund to the commissioner 
80.2 	of management and budget.

80.3 	EFFECTIVE DATE. This section is effective September 30, 2014.

80.4 	Sec. 2. Minnesota Statutes 2013 Supplement, section 354A.12, subdivision 3c, is 
80.5 	amended to read:
80.6 		Subd. 3c.Termination of supplemental contributions and direct matching 
80.7 	and state aid. (a) The supplemental contributions payable to the St. Paul Teachers 
80.8 	Retirement Fund Association by Independent School District No. 625 under section 
80.9 	423A.02, subdivision 3, and all forms of state aid under subdivision 3a to the St. Paul 
80.10 	Teachers Retirement Fund Association must continue until the current assets of the fund 
80.11 	equal or exceed the actuarial accrued liability of the fund as determined in the most recent 
80.12 	actuarial report for the fund by the actuary retained under section 356.214 or until June 
80.13 	30, 2037 the established date for full funding under section 356.215, subdivision 11, 
80.14 	whichever occurs earlier.
80.15 	(b) The aid to the Duluth Teachers Retirement Fund Association under section 
80.16 	423A.02, subdivision 3, and all forms of state aid under subdivision 3a to the Duluth 
80.17 	Teachers Retirement Fund Association must continue until the current assets of the fund 
80.18 	equal or exceed the actuarial accrued liability of the fund as determined in the most 
80.19 	recent actuarial report for the fund by the actuary retained under section 356.214 or until 
80.20 	the established date for full funding under section 356.215, subdivision 11, whichever 
80.21 	occurs earlier.

80.22 	EFFECTIVE DATE. This section is effective the day following final enactment.

80.23 	Sec. 3. Minnesota Statutes 2012, section 356.215, subdivision 11, is amended to read:
80.24 		Subd. 11.Amortization contributions. (a) In addition to the exhibit indicating 
80.25 	the level normal cost, the actuarial valuation of the retirement plan must contain an 
80.26 	exhibit for financial reporting purposes indicating the additional annual contribution 
80.27 	sufficient to amortize the unfunded actuarial accrued liability and must contain an exhibit 
80.28 	for contribution determination purposes indicating the additional contribution sufficient 
80.29 	to amortize the unfunded actuarial accrued liability. For the retirement plans listed in 
80.30 	subdivision 8, paragraph (c), but excluding the MERF division of the Public Employees 
80.31 	Retirement Association and the legislators retirement plan, the additional contribution 
80.32 	must be calculated on a level percentage of covered payroll basis by the established 
80.33 	date for full funding in effect when the valuation is prepared, assuming annual payroll 
81.1 	growth at the applicable percentage rate set forth in subdivision 8, paragraph (c). For all 
81.2 	other retirement plans and for the MERF division of the Public Employees Retirement 
81.3 	Association and the legislators retirement plan, the additional annual contribution must be 
81.4 	calculated on a level annual dollar amount basis.
81.5 	(b) For any retirement plan other than the general state employees retirement plan 
81.6 	of the Minnesota State Retirement System or a retirement plan governed by paragraph 
81.7 	(d), (e), (f), (g), (h), (i), or (j), if there has not been a change in the actuarial assumptions 
81.8 	used for calculating the actuarial accrued liability of the fund, a change in the benefit 
81.9 	plan governing annuities and benefits payable from the fund, a change in the actuarial 
81.10 	cost method used in calculating the actuarial accrued liability of all or a portion of the 
81.11 	fund, or a combination of the three, which change or changes by itself or by themselves 
81.12 	without inclusion of any other items of increase or decrease produce a net increase in the 
81.13 	unfunded actuarial accrued liability of the fund, the established date for full funding is the 
81.14 	first actuarial valuation date occurring after June 1, 2020.
81.15 	(c) For any retirement plan other than the general employees retirement plan of the 
81.16 	Public Employees Retirement Association, if there has been a change in any or all of the 
81.17 	actuarial assumptions used for calculating the actuarial accrued liability of the fund, a 
81.18 	change in the benefit plan governing annuities and benefits payable from the fund, a 
81.19 	change in the actuarial cost method used in calculating the actuarial accrued liability of all 
81.20 	or a portion of the fund, or a combination of the three, and the change or changes, by itself 
81.21 	or by themselves and without inclusion of any other items of increase or decrease, produce 
81.22 	a net increase in the unfunded actuarial accrued liability in the fund, the established date 
81.23 	for full funding must be determined using the following procedure:
81.24 	(i) the unfunded actuarial accrued liability of the fund must be determined in 
81.25 	accordance with the plan provisions governing annuities and retirement benefits and the 
81.26 	actuarial assumptions in effect before an applicable change;
81.27 	(ii) the level annual dollar contribution or level percentage, whichever is applicable, 
81.28 	needed to amortize the unfunded actuarial accrued liability amount determined under item 
81.29 	(i) by the established date for full funding in effect before the change must be calculated 
81.30 	using the interest assumption specified in subdivision 8 in effect before the change;
81.31 	(iii) the unfunded actuarial accrued liability of the fund must be determined in 
81.32 	accordance with any new plan provisions governing annuities and benefits payable from 
81.33 	the fund and any new actuarial assumptions and the remaining plan provisions governing 
81.34 	annuities and benefits payable from the fund and actuarial assumptions in effect before 
81.35 	the change;
82.1 	(iv) the level annual dollar contribution or level percentage, whichever is applicable, 
82.2 	needed to amortize the difference between the unfunded actuarial accrued liability amount 
82.3 	calculated under item (i) and the unfunded actuarial accrued liability amount calculated 
82.4 	under item (iii) over a period of 30 years from the end of the plan year in which the 
82.5 	applicable change is effective must be calculated using the applicable interest assumption 
82.6 	specified in subdivision 8 in effect after any applicable change;
82.7 	(v) the level annual dollar or level percentage amortization contribution under item 
82.8 	(iv) must be added to the level annual dollar amortization contribution or level percentage 
82.9 	calculated under item (ii);
82.10 	(vi) the period in which the unfunded actuarial accrued liability amount determined 
82.11 	in item (iii) is amortized by the total level annual dollar or level percentage amortization 
82.12 	contribution computed under item (v) must be calculated using the interest assumption 
82.13 	specified in subdivision 8 in effect after any applicable change, rounded to the nearest 
82.14 	integral number of years, but not to exceed 30 years from the end of the plan year in which 
82.15 	the determination of the established date for full funding using the procedure set forth in this 
82.16 	clause is made and not to be less than the period of years beginning in the plan year in which 
82.17 	the determination of the established date for full funding using the procedure set forth in 
82.18 	this clause is made and ending by the date for full funding in effect before the change; and
82.19 	(vii) the period determined under item (vi) must be added to the date as of which 
82.20 	the actuarial valuation was prepared and the date obtained is the new established date 
82.21 	for full funding.
82.22 	(d) For the MERF division of the Public Employees Retirement Association, the 
82.23 	established date for full funding is June 30, 2031.
82.24 	(e) For the general employees retirement plan of the Public Employees Retirement 
82.25 	Association, the established date for full funding is June 30, 2031.
82.26 	(f) For the Teachers Retirement Association, the established date for full funding is 
82.27 	June 30, 2037.
82.28 	(g) For the correctional state employees retirement plan of the Minnesota State 
82.29 	Retirement System, the established date for full funding is June 30, 2038.
82.30 	(h) For the judges retirement plan, the established date for full funding is June 
82.31 	30, 2038.
82.32 	(i) For the public employees police and fire retirement plan, the established date 
82.33 	for full funding is June 30, 2038.
82.34 	(j) For the St. Paul Teachers Retirement Fund Association, the established date for 
82.35 	full funding is June 30 of the 25th year from the valuation date, 2042. In addition to 
82.36 	other requirements of this chapter, the annual actuarial valuation must contain an exhibit 
83.1 	indicating the funded ratio and the deficiency or sufficiency in annual contributions when 
83.2 	comparing liabilities to the market value of the assets of the fund as of the close of the 
83.3 	most recent fiscal year.
83.4 	(k) For the general state employees retirement plan of the Minnesota State 
83.5 	Retirement System, the established date for full funding is June 30, 2040.
83.6 	(l) For the retirement plans for which the annual actuarial valuation indicates an 
83.7 	excess of valuation assets over the actuarial accrued liability, the valuation assets in 
83.8 	excess of the actuarial accrued liability must be recognized as a reduction in the current 
83.9 	contribution requirements by an amount equal to the amortization of the excess expressed 
83.10 	as a level percentage of pay over a 30-year period beginning anew with each annual 
83.11 	actuarial valuation of the plan.

83.12 	EFFECTIVE DATE. This section is effective the day following final enactment.

83.13 	ARTICLE 8
83.14 	MNSCU-RELATED PROVISIONS

83.15 	Section 1. Minnesota Statutes 2012, section 136F.481, is amended to read:
83.16 	136F.481 EARLY SEPARATION INCENTIVE PROGRAM.
83.17 	(a) Notwithstanding any provision of law to the contrary, the Board of Trustees 
83.18 	of the Minnesota State Colleges and Universities may offer a targeted early separation 
83.19 	incentive program for its employees.
83.20 	(b) The early separation incentive program may include one or both of the following:
83.21 	(1) cash incentives, not to exceed one year of base salary; or
83.22 	(2) employer contributions to the postretirement healthcare savings plan established 
83.23 	under section 352.98.
83.24 	(c) To be eligible to receive an incentive, an employee must be at least age 55 
83.25 	and must have at least five years of employment by the Minnesota State Colleges and 
83.26 	Universities System. The board of trustees shall establish and periodically revise the 
83.27 	eligibility requirements for system employees to receive an incentive. The board of 
83.28 	trustees shall file a copy of its proposed revised eligibility requirements with the chairs 
83.29 	and ranking members of the senate committee onwith higher education within its 
83.30 	jurisdiction and the Higher Education budget and Policysenate finance division of the 
83.31 	senate Committee on Financewith higher education within its jurisdiction and with the 
83.32 	chair and ranking members of the Higher Education and Workforce Development Finance 
83.33 	and Policy Division of the Finance committee ofin the house of representatives with 
83.34 	higher education within its jurisdiction and of the house of representatives Committee 
84.1 	on Ways and Means, at least 30 days before their the final adoption of the proposed 
84.2 	revised eligibility requirements by the board of trustees, shall post the same document 
84.3 	on the system Web site at the same time, and shall hold a public hearing on the proposed 
84.4 	eligibility requirements. The type and any additional amount of the incentive to be offered 
84.5 	may vary by employee classification, as specified by the board.
84.6 	(d) The president of a college or university, consistent with paragraphs (b) and 
84.7 	(c), may designate:
84.8 	(1) specific departments or programs at the college or university whose employees 
84.9 	are eligible to be offered the incentive program; or
84.10 	(2) positions at the college or university eligible to be offered the incentive program.
84.11 	(e) The chancellor, consistent with paragraphs (b) and (c), may designate:
84.12 	(1) system office divisions whose employees are eligible to be offered the incentive 
84.13 	program; or
84.14 	(2) positions at the system office eligible to be offered the incentive program.
84.15 	(f) Acceptance of the offered incentive must be voluntary on the part of the employee 
84.16 	and must be in writing. The incentive may only be offered at the sole discretion of the 
84.17 	president of the applicable college or university.
84.18 	(g) A decision by the president of a college or university or by the chancellor not to 
84.19 	offer an incentive may not be challenged.
84.20 	(h) The cost of the incentive is payable by the college or university on whose behalf 
84.21 	the president offered the incentive or from the system office budget if the chancellor offered 
84.22 	the incentive. If a college or university is merged, the remaining cost of any early separation 
84.23 	incentive must be borne by the successor institution. If a college or university is closed, 
84.24 	the remaining cost of any early separation incentive must be borne by the board of trustees.
84.25 	(i) Annually, the chancellor and the president of each college or university must 
84.26 	report on the number and types of early separation incentives which were offered and 
84.27 	utilized under this section. The report must be filed annually with the board of trustees and 
84.28 	with the Legislative Reference Library on or before September 1.
84.29 	(j) The early retirement incentive authority under this section expires on June 30, 
84.30 	2019.

84.31 	EFFECTIVE DATE. This section is effective the day following final enactment.

84.32 	Sec. 2. Minnesota Statutes 2012, section 352.1155, subdivision 1, is amended to read:
84.33 		Subdivision 1.Eligibility. Except as indicated in subdivision 4, the annuity 
84.34 	reduction provisions of section 352.115, subdivision 10, do not apply to a person who:
85.1 	(1) retires from the Minnesota State Colleges and Universities system with at least 
85.2 	ten years of combined service credit in a system under the jurisdiction of the Board of 
85.3 	Trustees of the Minnesota State Colleges and Universities;
85.4 	(2) was employed on a full-time basis immediately preceding retirement as a faculty 
85.5 	member or as an unclassified administrator in that system;
85.6 	(3) was not a recipient of an early retirement incentive under section 136F.481;
85.7 	(3) (4) begins drawing an annuity from the general state employees retirement plan 
85.8 	of the Minnesota State Retirement System; and
85.9 	(4) (5) returns to work on not less than a one-third time basis and not more than a 
85.10 	two-thirds time basis in the system from which the person retired under an agreement in 
85.11 	which the person may not earn a salary of more than $46,000$62,000  in a calendar year 
85.12 	from through employment after retirement in the system from which the person retired.

85.13 	EFFECTIVE DATE. This section is effective July 1, 2014.

85.14 	Sec. 3. Minnesota Statutes 2012, section 352.1155, subdivision 4, is amended to read:
85.15 		Subd. 4.Exemption limit. For a person eligible under this section who earns more 
85.16 	than $46,000$62,000 in a calendar year from through reemployment in the Minnesota 
85.17 	State Colleges and Universities system following retirement, the annuity reduction 
85.18 	provisions of section 352.115, subdivision 10, apply only to income over $46,000 $62,000.

85.19 	EFFECTIVE DATE. This section is effective July 1, 2014.

85.20 	Sec. 4. Minnesota Statutes 2012, section 354.445, is amended to read:
85.21 	354.445 NO ANNUITY REDUCTION.
85.22 	(a) The annuity reduction provisions of section 354.44, subdivision 5, do not apply 
85.23 	to a person who:
85.24 	(1) retires from the Minnesota State Colleges and Universities system with at least 
85.25 	ten years of combined service credit in a system under the jurisdiction of the Board of 
85.26 	Trustees of the Minnesota State Colleges and Universities;
85.27 	(2) was employed on a full-time basis immediately preceding retirement as a faculty 
85.28 	member or as an unclassified administrator in that system;
85.29 	(3) was not a recipient of an early retirement incentive under section 136F.481;
85.30 	(3) (4) begins drawing an annuity from the teachers retirement association; and
85.31 	(4) (5) returns to work on not less than a one-third time basis and not more than a 
85.32 	two-thirds time basis in the system from which the person retired under an agreement in 
86.1 	which the person may not earn a salary of more than $46,000$62,000 in a calendar year 
86.2 	from through employment after retirement in the system from which the person retired.
86.3 	(b) Initial participation, the amount of time worked, and the duration of participation 
86.4 	under this section must be mutually agreed upon by the president of the institution where 
86.5 	the person returns to work and the employee. The president may require up to one-year 
86.6 	notice of intent to participate in the program as a condition of participation under this 
86.7 	section. The president shall determine the time of year the employee shall work. The 
86.8 	employer or the president may not require a person to waive any rights under a collective 
86.9 	bargaining agreement as a condition of participation under this section.
86.10 	(c) Notwithstanding any law to the contrary, a person eligible under paragraphs (a) 
86.11 	and (b) may not, based on employment to which the waiver in this section applies, earn 
86.12 	further service credit in a Minnesota public defined benefit plan and is not eligible to 
86.13 	participate in a Minnesota public defined contribution plan, other than a volunteer fire plan 
86.14 	governed by chapter 424A. No employer or employee contribution to any of these plans 
86.15 	may be made on behalf of such a person.
86.16 	(d) For a person eligible under paragraphs (a) and (b) who earns more than $46,000
86.17 	$62,000 in a calendar year from through employment after retirement due to employment 
86.18 	by the Minnesota state colleges and universities system, the annuity reduction provisions 
86.19 	of section 354.44, subdivision 5, apply only to income over $46,000 $62,000.
86.20 	(e) A person who returns to work under this section is a member of the appropriate 
86.21 	bargaining unit and is covered by the appropriate collective bargaining contract. Except 
86.22 	as provided in this section, the person's coverage is subject to any part of the contract 
86.23 	limiting rights of part-time employees.

86.24 	EFFECTIVE DATE. This section is effective July 1, 2014.

86.25 	Sec. 5. Minnesota Statutes 2012, section 354A.31, subdivision 3a, is amended to read:
86.26 		Subd. 3a.No annuity reduction. (a) The annuity reduction provisions of 
86.27 	subdivision 3 do not apply to a person who:
86.28 	(1) retires from the technical college system with at least ten years of service credit 
86.29 	in the system from which the person retires;
86.30 	(2) was employed on a full-time basis immediately preceding retirement as a 
86.31 	technical college faculty member;
86.32 	(3) was not a recipient of an early retirement incentive under section 136F.481;
86.33 	(3) (4) begins drawing an annuity from a first class city teachers retirement 
86.34 	association; and
87.1 	(4) (5) returns to work on not less than a one-third time basis and not more than a 
87.2 	two-thirds time basis in the technical college system under an agreement in which the 
87.3 	person may not earn a salary of more than $46,000$62,000 in a calendar year from
87.4 	 through the technical college system.
87.5 	(b) Initial participation, the amount of time worked, and the duration of participation 
87.6 	under this section must be mutually agreed upon by the employer and the employee. The 
87.7 	employer may require up to a one-year notice of intent to participate in the program as a 
87.8 	condition of participation under this section. The employer shall determine the time 
87.9 	of year the employee shall work.
87.10 	(c) Notwithstanding any law to the contrary, a person eligible under paragraphs 
87.11 	(a) and (b) may not earn further service credit in a first class city teachers retirement 
87.12 	association and is not eligible to participate in the individual retirement account plan or 
87.13 	the supplemental retirement plan established in chapter 354B as a result of service under 
87.14 	this section. No employer or employee contribution to any of these plans may be made on 
87.15 	behalf of such a person.

87.16 	EFFECTIVE DATE. This section is effective July 1, 2014.

87.17 	Sec. 6. Minnesota Statutes 2012, section 354B.21, subdivision 2, is amended to read:
87.18 		Subd. 2.Coverage; election. (a) An eligible person employed by the board has 
87.19 	the default coverage specified in subdivision 3, or other subdivisions of this section, 
87.20 	whichever is applicable, and retains that coverage for the period of covered employment 
87.21 	unless a timely election to change that coverage is made as specified in this section.
87.22 	(b) An eligible person under subdivision 3, paragraph (b) or (c), is authorized to elect 
87.23 	prospective Teachers Retirement Association plan coverage.
87.24 	(c) An eligible person under subdivision 3, paragraph (d), is authorized to elect 
87.25 	prospective coverage by the plan established by this chapter.
87.26 	(d) The election under paragraph (a) must be made within one year of commencing 
87.27 	eligible Minnesota State Colleges and Universities system employment. If an election 
87.28 	is not made within the specified election period due to a termination of Minnesota State 
87.29 	Colleges and Universities system employment, an election may be made within 90 days 
87.30 	of returning to eligible Minnesota State Colleges and Universities system employment. 
87.31 	Except as specified in paragraph (f), all elections are irrevocable.
87.32 	(e) Except as provided in paragraph (f), a purchase of service credit in the Teachers 
87.33 	Retirement Association plan for any period or periods of Minnesota State Colleges 
87.34 	and Universities system employment occurring before the election under this section 
87.35 	is prohibited.
88.1 	(f) Notwithstanding other paragraphs in this subdivision, a faculty member who 
88.2 	is a member of the individual retirement account plan may elect to transfer retirement 
88.3 	coverage to the teachers retirement plan within one year of the faculty member first 
88.4 	achieving tenure or its equivalent at a Minnesota state college or university. The faculty 
88.5 	member electing Teachers Retirement Association coverage under this paragraph must 
88.6 	purchase service credit in the Teachers Retirement Association for the entire period of 
88.7 	time covered under the individual retirement account plan and the purchase payment 
88.8 	amount must be determined under section 356.551. The Teachers Retirement Association 
88.9 	may charge a faculty member transferring coverage a reasonable fee to cover the costs 
88.10 	associated with computing the actuarial cost of purchasing service credit and making the 
88.11 	transfer. A faculty member transferring from the individual retirement account plan to the 
88.12 	Teachers Retirement Association may use any balances to the credit of the faculty member 
88.13 	in the individual retirement account plan, any balances to the credit of the faculty member 
88.14 	in the higher education supplemental retirement plan established under chapter 354C, or 
88.15 	any source specified in section 356.441, subdivision 1, to purchase the service credit in the 
88.16 	Teachers Retirement Association. If the total amount of payments under this paragraph are 
88.17 	less than the total purchase payment amount under section 356.551, the payment amounts 
88.18 	must be refunded to the applicable source. The retirement coverage transfer and service 
88.19 	credit purchase authority under this paragraph expires with respect to any Minnesota State 
88.20 	Colleges and Universities System faculty initially hired after June 30, 2014.

88.21 	EFFECTIVE DATE. This section is effective July 1, 2014.

88.22 	Sec. 7. Laws 2009, chapter 169, article 6, section 1, the effective date, is amended to 
88.23 	read:

88.24 	EFFECTIVE DATE; SUNSET. This section is effective the day following final 
88.25 	enactment and expires June 30, 2014.

88.26 	EFFECTIVE DATE. This section is effective the day following final enactment.

88.27 	ARTICLE 9
88.28 	POLICE AND FIREFIGHTER PENSION CHANGES

88.29 	Section 1. Minnesota Statutes 2012, section 353.6511, subdivision 7, is amended to read:
88.30 		Subd. 7.Postretirement adjustments.  Effective January 1, 2012, service pensions 
88.31 	and survivor benefits in force are entitled to be recomputed with the number of units 
88.32 	specified in subdivision 2, subdivision 4, and subdivision 6. Optional annuities under 
89.1 	Minnesota Statutes 2010, section 423C.05, subdivision 8, also are entitled to be recomputed 
89.2 	as the actuarial equivalent of the service pensions and survivor benefits with the number of 
89.3 	units specified in subdivision 2, subdivision 4, and subdivision 6. Retirement annuities, 
89.4 	service pensions, disability benefits, and survivor benefits after December 31, 2015, are 
89.5 	eligible for postretirement adjustments under section 356.415, subdivision 1c. The unit 
89.6 	value for the calculation of a retirement annuity first payable after December 31, 2015, is 
89.7 	the calendar year 2015 unit value, plus any annual postretirement adjustment percentage 
89.8 	amount payable after December 31, 2015, under section 356.415, subdivision 1c, payable 
89.9 	after December 31, 2015, and before the date of retirement paragraph (a), clause (1), or, 
89.10 	when applicable, under section 356.415, subdivision 1c, paragraph (b), clause (1).

89.11 	Sec. 2. Minnesota Statutes 2012, section 353.6512, subdivision 7, is amended to read:
89.12 		Subd. 7.Postretirement adjustments. Retirement annuities, service pensions, 
89.13 	disability benefits, and survivor benefits after December 31, 2015, are eligible for 
89.14 	postretirement adjustments under section 356.415, subdivision 1c. The unit value for the 
89.15 	calculation of a retirement annuity first payable after December 31, 2015, is the calendar 
89.16 	year 2015 unit value, plus any annual postretirement adjustment percentage amount 
89.17 	payable after December 31, 2015, under section 356.415, subdivision 1c, payable after 
89.18 	December 31, 2015, and before the date of retirement paragraph (a), clause (1), or, when 
89.19 	applicable, under section 356.415, subdivision 1c, paragraph (b), clause (1).

89.20 	Sec. 3. Minnesota Statutes 2013 Supplement, section 423A.02, subdivision 3, is 
89.21 	amended to read:
89.22 		Subd. 3.Reallocation of amortization state aid. (a) Seventy percent of the 
89.23 	difference between $5,720,000 and the current year amortization aid distributed under 
89.24 	subdivision 1 that is not distributed for any reason to a municipality must be distributed 
89.25 	by the commissioner of revenue according to this paragraph. The commissioner shall 
89.26 	distribute 50 percent of the amounts derived under this paragraph to the Teachers 
89.27 	Retirement Association, ten percent to the Duluth Teachers Retirement Fund Association, 
89.28 	and 40 percent to the St. Paul Teachers Retirement Fund Association to fund the unfunded 
89.29 	actuarial accrued liabilities of the respective funds. These payments must be made on July 
89.30 	15 each fiscal year. If the St. Paul Teachers Retirement Fund Association or the Duluth 
89.31 	Teachers Retirement Fund Association becomes fully funded, the association's eligibility 
89.32 	for its portion of this aid ceases. Amounts remaining in the undistributed balance account 
89.33 	at the end of the biennium if aid eligibility ceases cancel to the general fund.
90.1 	(b) In order to receive amortization aid under paragraph (a), before June 30 annually 
90.2 	Independent School District No. 625, St. Paul, must make an additional contribution of 
90.3 	$800,000 each year to the St. Paul Teachers Retirement Fund Association.
90.4 	(c) Thirty percent of the difference between $5,720,000 and the current year 
90.5 	amortization aid under subdivision 1a1 that is not distributed for any reason to a 
90.6 	municipality must be distributed under section 69.021, subdivision 7, paragraph (d), as 
90.7 	additional funding to support a minimum fire state aid amount for volunteer firefighter 
90.8 	relief associations.

90.9 	EFFECTIVE DATE. This section is effective retroactively from July 1, 2013.

90.10 	Sec. 4. Minnesota Statutes 2013 Supplement, section 423A.022, subdivision 2, is 
90.11 	amended to read:
90.12 		Subd. 2.Allocation. (a) Of the total amount appropriated as supplemental state aid:
90.13 	(1) 58.06558.064 percent must be paid to the executive director of the Public 
90.14 	Employees Retirement Association for deposit in the public employees police and fire 
90.15 	retirement fund established by section 353.65, subdivision 1;
90.16 	(2) 35.484 percent must be paid to municipalities other than municipalities solely 
90.17 	employing firefighters with retirement coverage provided by the public employees police 
90.18 	and fire retirement plan which qualified to receive fire state aid in that calendar year, 
90.19 	allocated in proportion to the most recent amount of fire state aid paid under section 
90.20 	69.021, subdivision 7, for the municipality bears to the most recent total fire state aid 
90.21 	for all municipalities other than the municipalities solely employing firefighters with 
90.22 	retirement coverage provided by the public employees police and fire retirement plan 
90.23 	paid under section 69.021, subdivision 7, with the allocated amount for fire departments 
90.24 	participating in the voluntary statewide lump-sum volunteer firefighter retirement plan 
90.25 	paid to the executive director of the Public Employees Retirement Association for deposit 
90.26 	in the fund established by section 353G.02, subdivision 3, and credited to the respective 
90.27 	account and with the balance paid to the treasurer of each municipality for transmittal 
90.28 	within 30 days of receipt to the treasurer of the applicable volunteer firefighter relief 
90.29 	association for deposit in its special fund; and
90.30 	(3) 6.452 percent must be paid to the executive director of the Minnesota State 
90.31 	Retirement System for deposit in the state patrol retirement fund.
90.32 	(b) For purposes of this section, the term "municipalities" includes independent 
90.33 	nonprofit firefighting corporations that participate in the voluntary statewide lump-sum 
90.34 	volunteer firefighter retirement plan under chapter 353G or with subsidiary volunteer 
90.35 	firefighter relief associations operating under chapter 424A.

91.1 	EFFECTIVE DATE. This section is effective the day following final enactment.

91.2 	Sec. 5. Minnesota Statutes 2013 Supplement, section 423A.022, subdivision 3, is 
91.3 	amended to read:
91.4 		Subd. 3.Reporting; definitions. (a) On or before September 1, annually, the 
91.5 	executive director of the Public Employees Retirement Association shall report to the 
91.6 	commissioner of revenue the following:
91.7 	(1) the municipalities which employ firefighters with retirement coverage by the 
91.8 	public employees police and fire retirement plan;
91.9 	(2) the number of firefighters with public employees police and fire retirement plan 
91.10 	coverage employed by each municipality;
91.11 	(3) the fire departments covered by the voluntary statewide lump-sum volunteer 
91.12 	firefighter retirement plan; and
91.13 	(4) any other information requested by the commissioner to administer the police 
91.14 	and firefighter retirement supplemental state aid program.
91.15 	(b) For this subdivision, (i) the number of firefighters employed by a municipality 
91.16 	who have public employees police and fire retirement plan coverage means the number 
91.17 	of firefighters with public employees police and fire retirement plan coverage that were 
91.18 	employed by the municipality for not less than 30 hours per week for a minimum of six 
91.19 	months prior to December 31 preceding the date of the payment under this section and, if 
91.20 	the person was employed for less than the full year, prorated to the number of full months 
91.21 	employed; and (ii) the number of active police officers certified for police state aid receipt 
91.22 	under section 69.011, subdivisions 2 and 2b, means, for each municipality, the number of 
91.23 	police officers meeting the definition of peace officer in section 69.011, subdivision 1, 
91.24 	counted as provided and limited by section 69.011, subdivisions 2 and 2b.

91.25 	EFFECTIVE DATE. This section is effective the day following final enactment.

91.26 	Sec. 6. ADDITIONAL SUPPLEMENTAL AID REVISION FOR OMITTED 2013 
91.27 	INDEPENDENT NONPROFIT FIREFIGHTING CORPORATIONS.
 91.28 	(a) Notwithstanding any provision of Minnesota Statutes, chapter 423A, to the 
91.29 	contrary, this section modifies the allocation of the police and fire supplemental retirement 
91.30 	state aid under Minnesota Statutes 2013 Supplement, section 423A.022, for October 
91.31 	1, 2014.
91.32 	(b) Before the allocation of the police and fire supplemental retirement state aid is 
91.33 	made for October 1, 2014, the commissioner of revenue shall:
92.1 	(1) determine those fire departments that qualified for fire state aid under Minnesota 
92.2 	Statutes 2012, section 69.021, subdivision 7, on October 1, 2013, that did not receive a 
92.3 	2013 allocation of police and fire supplemental retirement state aid, and that were an 
92.4 	independent nonprofit firefighting corporation; and
92.5 	(2) determine the amount of police and fire supplemental retirement state aid 
92.6 	under Minnesota Statutes 2013 Supplement, section 423A.022, that the fire departments 
92.7 	described in clause (1) would have received on October 1, 2013, if the fire departments 
92.8 	had been included in that allocation.
92.9 	(c) The total amount determined in paragraph (b), clause (2), must be deducted from 
92.10 	the amount available for allocation under Minnesota Statutes 2013 Supplement, section 
92.11 	423A.022, subdivision 2, clause (2), and the commissioner of revenue shall pay to the fire 
92.12 	departments determined in paragraph (b), clause (1), their respective portion of the total as 
92.13 	an additional payment on October 1, 2014.
92.14 	(d) The remaining amount after the deduction of the total amount under paragraph 
92.15 	(c) must be allocated as provided in Minnesota Statutes, section 423A.022, subdivision 2.

92.16 	Sec. 7. PERA; STUDY OF LOCAL RELIEF ASSOCIATION BENEFITS 
92.17 	UNDER CONSOLIDATION.
 92.18 	The executive director of the Public Employees Retirement Association shall 
92.19 	report to the Legislative Commission on Pensions and Retirement by February 1, 2015, 
92.20 	regarding the situation of former members and surviving spouses of former members of 
92.21 	local salaried police and fire relief associations governed by Minnesota Statutes, chapter 
92.22 	423A, that consolidated with the public employees police and fire retirement plan under 
92.23 	Minnesota Statutes, chapter 353A, and Laws 1999, chapter 222, article 4.

92.24 	EFFECTIVE DATE. This section is effective the day following final enactment.

92.25 	ARTICLE 10
92.26 	ACTUARIAL ASSUMPTION CHANGES

92.27 	Section 1. Minnesota Statutes 2013 Supplement, section 356.215, subdivision 8, 
92.28 	is amended to read:
92.29 		Subd. 8.Interest and salary assumptions. (a) The actuarial valuation must use 
92.30 	the applicable following preretirement interest assumption and the applicable following 
92.31 	postretirement interest assumption:
92.32 	(1) select and ultimate interest rate assumption

93.1
93.2
93.3
93.4	plan
	ultimate 
preretirement
 interest rate 
assumption
	ultimate 
postretirement 
interest rate 
assumption
	
93.5	general state employees retirement plan
	8.5%
	6.0%
	
93.6	correctional state employees retirement plan
	8.5
	6.0
	
93.7	State Patrol retirement plan
	8.5
	6.0
	
93.8
93.993.10
	legislators retirement plan, and for the 
constitutional officers calculation of total plan 
liabilities
	 0.0 
	  0.0
	
93.11	judges retirement plan
	8.5
	6.0
	
93.12	general public employees retirement plan
	8.5
	6.0
	
93.13	public employees police and fire retirement plan
	8.5
	6.0
	
93.14
93.15	local government correctional service 
retirement plan
	8.5
	6.0
	
93.16	teachers retirement plan
	8.5
	6.0
	
93.17	Duluth teachers retirement plan
	8.5
	8.5
	
93.18	St. Paul teachers retirement plan
	8.5
	8.5
	
93.19 	Except for the legislators retirement plan and the constitutional officers calculation 
93.20 	of total plan liabilities, the select preretirement interest rate assumption for the period 
93.21 	after June 30, 2012, through June 30, 2017, is 8.0 percent. Except for the legislators 
93.22 	retirement plan and the constitutional officers calculation of total plan liabilities, the select 
93.23 	postretirement interest rate assumption for the period after June 30, 2012, through June 
93.24 	30, 2017, is 5.5 percent, except for the Duluth teachers retirement plan and the St. Paul 
93.25 	teachers retirement plan, each with a select postretirement interest rate assumption for the 
93.26 	period after June 30, 2012, through June 30, 2017, of 8.0 percent.
93.27 	(2) single rate preretirement and postretirement interest rate assumption

93.28
93.29	plan
	interest rate 
assumption
		
93.30	Bloomington Fire Department Relief Association
	6.0
		
93.31
93.32	local monthly benefit volunteer firefighters relief 
associations
	5.0
		
93.33 	(b)(1) If funding stability has been attained, the valuation must use a postretirement 
93.34 	adjustment rate actuarial assumption equal to the postretirement adjustment rate specified 
93.35 	in section 354A.27, subdivision 7; 354A.29, subdivision 9; or 356.415, subdivision 1, 
93.36 	whichever applies.
93.37 	(2) If funding stability has not been attained, the valuation must use a select 
93.38 	postretirement adjustment rate actuarial assumption equal to the postretirement adjustment 
93.39 	rate specified in section 354A.27, subdivision 6a; 354A.29, subdivision 8; or 356.415, 
93.40 	subdivision 1a, 1b, 1c, 1d, 1e, or 1f, whichever applies, for a period ending when the 
93.41 	approved actuary estimates that the plan will attain the defined funding stability measure, 
94.1 	and thereafter an ultimate postretirement adjustment rate actuarial assumption equal 
94.2 	to the postretirement adjustment rate under section 354A.27, subdivision 7; 354A.29, 
94.3 	subdivision 9; or 356.415, subdivision 1, for the applicable period or periods beginning 
94.4 	when funding stability is projected to be attained.
94.5 	(b)(c) The actuarial valuation must use the applicable following single rate future 
94.6 	salary increase assumption, the applicable following modified single rate future salary 
94.7 	increase assumption, or the applicable following graded rate future salary increase 
94.8 	assumption:
94.9 	(1) single rate future salary increase assumption

94.10	plan
	future salary increase assumption
	
94.11	legislators retirement plan
		5.0%
	
94.12	judges retirement plan
		3.0 
	
94.13
94.14	Bloomington Fire Department Relief 
Association
		4.0
	
94.15 	(2) age-related future salary increase age-related select and ultimate future salary 
94.16 	increase assumption or graded rate future salary increase assumption

94.17	plan
	future salary increase assumption
	
94.18	local government correctional service retirement plan
	assumption C
	
94.19	Duluth teachers retirement plan
	assumption A
	
94.20	St. Paul teachers retirement plan
	assumption B
	
94.21 	For plans other than the Duluth teachers 
94.22 	retirement plan, the select calculation 
94.23 	is: during the designated select period, a 
94.24 	designated percentage rate is multiplied by 
94.25 	the result of the designated integer minus T, 
94.26 	where T is the number of completed years 
94.27 	of service, and is added to the applicable 
94.28 	future salary increase assumption. The 
94.29 	designated select period is ten years and 
94.30 	the designated integer is ten for the Duluth 
94.31 	Teachers Retirement Fund Association 
94.32 	and for the local government correctional 
94.33 	service retirement plan and 15 for the St. 
94.34 	Paul Teachers Retirement Fund Association. 
94.35 	The designated percentage rate is 0.2 
94.36 	percent for the St. Paul Teachers Retirement 
94.37 	Fund Association. The select calculation 
95.1 	for the Duluth Teachers Retirement Fund 
95.2 	Association is 8.00 percent per year for 
95.3 	service years one through seven, 7.25 percent 
95.4 	per year for service years seven and eight, 
95.5 	and 6.50 percent per year for service years 
95.6 	eight and nine.
95.7 	The ultimate future salary increase assumption is:

95.8	age
	A
	B
	C
		
95.9	16
	6.00%
	5.90%
	9.00%
		
95.10	17
	6.00
	5.90
	9.00
		
95.11	18
	6.00
	5.90
	9.00
		
95.12	19
	6.00
	5.90
	9.00
		
95.13	20
	6.00
	5.90
	9.00
		
95.14	21
	6.00
	5.90
	8.75
		
95.15	22
	6.00
	5.90
	8.50
		
95.16	23
	6.00
	5.85
	8.25
		
95.17	24
	6.00
	5.80
	8.00
		
95.18	25
	6.00
	5.75
	7.75
		
95.19	26
	6.00
	5.70
	7.50
		
95.20	27
	6.00
	5.65
	7.25
		
95.21	28
	6.00
	5.60
	7.00
		
95.22	29
	6.00
	5.55
	6.75
		
95.23	30
	6.00
	5.50
	6.75
		
95.24	31
	6.00
	5.45
	6.50
		
95.25	32
	6.00
	5.40
	6.50
		
95.26	33
	6.00
	5.35
	6.50
		
95.27	34
	6.00
	5.30
	6.25
		
95.28	35
	6.00
	5.25
	6.25
		
95.29	36
	5.86
	5.20
	6.00
		
95.30	37
	5.73
	5.15
	6.00
		
95.31	38
	5.59
	5.10
	6.00
		
95.32	39
	5.45
	5.05
	5.75
		
95.33	40
	5.31
	5.00
	5.75
		
95.34	41
	5.18
	4.95
	5.75
		
95.35	42
	5.04
	4.90
	5.50
		
95.36	43
	4.90
	4.85
	5.25
		
95.37	44
	4.76
	4.80
	5.25
		
95.38	45
	4.63
	4.75
	5.00
		
95.39	46
	4.49
	4.70
	5.00
		
95.40	47
	4.35
	4.65
	5.00
		
95.41	48
	4.21
	4.60
	5.00
		
95.42	49
	4.08
	4.55
	5.00
		
96.1	50
	3.94
	4.50
	5.00
		
96.2	51
	3.80
	4.45
	5.00
		
96.3	52
	3.66
	4.40
	5.00
		
96.4	53
	3.53
	4.35
	5.00
		
96.5	54
	3.39
	4.30
	5.00
		
96.6	55
	3.25
	4.25
	4.75
		
96.7	56
	3.25
	4.20
	4.75
		
96.8	57
	3.25
	4.15
	4.50
		
96.9	58
	3.25
	4.10
	4.25
		
96.10	59
	3.25
	4.05
	4.25
		
96.11	60
	3.25
	4.00
	4.25
		
96.12	61
	3.25
	4.00
	4.25
		
96.13	62
	3.25
	4.00
	4.25
		
96.14	63
	3.25
	4.00
	4.25
		
96.15	64
	3.25
	4.00
	4.25
		
96.16	65
	3.25
	4.00
	4.00
		
96.17	66
	3.25
	4.00
	4.00
		
96.18	67
	3.25
	4.00
	4.00
		
96.19	68
	3.25
	4.00
	4.00
		
96.20	69
	3.25
	4.00
	4.00
		
96.21	70
	3.25
	4.00
	4.00
		
96.22 	(3) service-related ultimate future salary increase assumption

96.23
96.24	general state employees retirement plan of the 
Minnesota State Retirement System
	assumption A
	
96.25
96.26	general employees retirement plan of the Public 
Employees Retirement Association
	assumption B
	
96.27	Teachers Retirement Association
	assumption C
	
96.28	public employees police and fire retirement plan
	assumption D
	
96.29	State Patrol retirement plan
	assumption E
	
96.30
96.31	correctional state employees retirement plan of the 
Minnesota State Retirement System
	assumption F

96.32
96.33	service 
length
	A
	B
	C
	D
	E
	F
	
96.34	1
	10.50%
	12.03%
	12.00%
	13.00%
	8.00%
	6.00%
	
96.35	2
	8.10
	8.90
	9.00
	11.00
	7.50
	5.85
	
96.36	3
	6.90
	7.46
	8.00
	9.00
	7.00
	5.70
	
96.37	4
	6.20
	6.58
	7.50
	8.00
	6.75
	5.55
	
96.38	5
	5.70
	5.97
	7.25
	6.50
	6.50
	5.40
	
96.39	6
	5.30
	5.52
	7.00
	6.10
	6.25
	5.25
	
96.40	7
	5.00
	5.16
	6.85
	5.80
	6.00
	5.10
	
96.41	8
	4.70
	4.87
	6.70
	5.60
	5.85
	4.95
	
96.42	9
	4.50
	4.63
	6.55
	5.40
	5.70
	4.80
	
96.43	10
	4.40
	4.42
	6.40
	5.30
	5.55
	4.65
	
97.1	11
	4.20
	4.24
	6.25
	5.20
	5.40
	4.55
	
97.2	12
	4.10
	4.08
	6.00
	5.10
	5.25
	4.45
	
97.3	13
	4.00
	3.94
	5.75
	5.00
	5.10
	4.35
	
97.4	14
	3.80
	3.82
	5.50
	4.90
	4.95
	4.25
	
97.5	15
	3.70
	3.70
	5.25
	4.80
	4.80
	4.15
	
97.6	16
	3.60
	3.60
	5.00
	4.80
	4.65
	4.05
	
97.7	17
	3.50
	3.51
	4.75
	4.80
	4.50
	3.95
	
97.8	18
	3.50
	3.50
	4.50
	4.80
	4.35
	3.85
	
97.9	19
	3.50
	3.50
	4.25
	4.80
	4.20
	3.75
	
97.10	20
	3.50
	3.50
	4.00
	4.80
	4.05
	3.75
	
97.11	21
	3.50
	3.50
	3.90
	4.70
	4.00
	3.75
	
97.12	22
	3.50
	3.50
	3.80
	4.60
	4.00
	3.75
	
97.13	23
	3.50
	3.50
	3.70
	4.50
	4.00
	3.75
	
97.14	24
	3.50
	3.50
	3.60
	4.50
	4.00
	3.75
	
97.15	25
	3.50
	3.50
	3.50
	4.50
	4.00
	3.75
	
97.16	26
	3.50
	3.50
	3.50
	4.50
	4.00
	3.75
	
97.17	27
	3.50
	3.50
	3.50
	4.50
	4.00
	3.75
	
97.18	28
	3.50
	3.50
	3.50
	4.50
	4.00
	3.75
	
97.19	29
	3.50
	3.50
	3.50
	4.50
	4.00
	3.75
	
97.20	30 or more
	3.50
	3.50
	3.50
	4.50
	4.00
	3.75
	
97.21 	(c)(d) The actuarial valuation must use the applicable following payroll growth 
97.22 	assumption for calculating the amortization requirement for the unfunded actuarial 
97.23 	accrued liability where the amortization retirement is calculated as a level percentage 
97.24 	of an increasing payroll:

97.25	plan
	payroll growth assumption
	
97.26
97.27	general state employees retirement plan of the 
Minnesota State Retirement System
	3.75%
	
97.28	correctional state employees retirement plan
	3.75
	
97.29	State Patrol retirement plan
	3.75
	
97.30	judges retirement plan
	3.00
	
97.31
97.32	general employees retirement plan of the Public 
Employees Retirement Association
	3.75
	
97.33	public employees police and fire retirement plan
	3.75
	
97.34	local government correctional service retirement plan
	3.75
	
97.35	teachers retirement plan
	3.75
	
97.36	Duluth teachers retirement plan
	3.50
	
97.37	St. Paul teachers retirement plan
	4.00
	
97.38 	(d)(e) The assumptions set forth in paragraphs (b) (c) and (c) (d) continue to apply, 
97.39 	unless a different salary assumption or a different payroll increase assumption:
97.40 	(1) has been proposed by the governing board of the applicable retirement plan;
98.1 	(2) is accompanied by the concurring recommendation of the actuary retained under 
98.2 	section 356.214, subdivision 1, if applicable, or by the approved actuary preparing the 
98.3 	most recent actuarial valuation report if section 356.214 does not apply; and
98.4 	(3) has been approved or deemed approved under subdivision 18.

98.5 	EFFECTIVE DATE. This section is effective June 30, 2014, and applies to 
98.6 	actuarial valuation reports prepared on or after that date.

98.7 	Sec. 2. Minnesota Statutes 2012, section 356.215, subdivision 11, is amended to read:
98.8 		Subd. 11.Amortization contributions. (a) In addition to the exhibit indicating 
98.9 	the level normal cost, the actuarial valuation of the retirement plan must contain an 
98.10 	exhibit for financial reporting purposes indicating the additional annual contribution 
98.11 	sufficient to amortize the unfunded actuarial accrued liability and must contain an exhibit 
98.12 	for contribution determination purposes indicating the additional contribution sufficient 
98.13 	to amortize the unfunded actuarial accrued liability. For the retirement plans listed in 
98.14 	subdivision 8, paragraph (c), but excluding the MERF division of the Public Employees 
98.15 	Retirement Association and the legislators retirement plan, the additional contribution 
98.16 	must be calculated on a level percentage of covered payroll basis by the established date 
98.17 	for full funding in effect when the valuation is prepared, assuming annual payroll growth 
98.18 	at the applicable percentage rate set forth in subdivision 8, paragraph (c) (d). For all 
98.19 	other retirement plans and for the MERF division of the Public Employees Retirement 
98.20 	Association and the legislators retirement plan, the additional annual contribution must be 
98.21 	calculated on a level annual dollar amount basis.
98.22 	(b) For any retirement plan other than the general state employees retirement plan of 
98.23 	the Minnesota State Retirement System or a retirement plan governed by paragraph (d), 
98.24 	(e), (f), (g), (h), (i), or (j), or (k), if there has not been a change in the actuarial assumptions 
98.25 	used for calculating the actuarial accrued liability of the fund, a change in the benefit 
98.26 	plan governing annuities and benefits payable from the fund, a change in the actuarial 
98.27 	cost method used in calculating the actuarial accrued liability of all or a portion of the 
98.28 	fund, or a combination of the three, which change or changes by itself or by themselves 
98.29 	without inclusion of any other items of increase or decrease produce a net increase in the 
98.30 	unfunded actuarial accrued liability of the fund, the established date for full funding is the 
98.31 	first actuarial valuation date occurring after June 1, 2020.
98.32 	(c) For any retirement plan other than the general employees retirement plan of the 
98.33 	Public Employees Retirement Association, if there has been a change in any or all of the 
98.34 	actuarial assumptions used for calculating the actuarial accrued liability of the fund, a 
98.35 	change in the benefit plan governing annuities and benefits payable from the fund, a 
99.1 	change in the actuarial cost method used in calculating the actuarial accrued liability of all 
99.2 	or a portion of the fund, or a combination of the three, and the change or changes, by itself 
99.3 	or by themselves and without inclusion of any other items of increase or decrease, produce 
99.4 	a net increase in the unfunded actuarial accrued liability in the fund, the established date 
99.5 	for full funding must be determined using the following procedure:
99.6 	(i) the unfunded actuarial accrued liability of the fund must be determined in 
99.7 	accordance with the plan provisions governing annuities and retirement benefits and the 
99.8 	actuarial assumptions in effect before an applicable change;
99.9 	(ii) the level annual dollar contribution or level percentage, whichever is applicable, 
99.10 	needed to amortize the unfunded actuarial accrued liability amount determined under item 
99.11 	(i) by the established date for full funding in effect before the change must be calculated 
99.12 	using the interest assumption specified in subdivision 8 in effect before the change;
99.13 	(iii) the unfunded actuarial accrued liability of the fund must be determined in 
99.14 	accordance with any new plan provisions governing annuities and benefits payable from 
99.15 	the fund and any new actuarial assumptions and the remaining plan provisions governing 
99.16 	annuities and benefits payable from the fund and actuarial assumptions in effect before 
99.17 	the change;
99.18 	(iv) the level annual dollar contribution or level percentage, whichever is applicable, 
99.19 	needed to amortize the difference between the unfunded actuarial accrued liability amount 
99.20 	calculated under item (i) and the unfunded actuarial accrued liability amount calculated 
99.21 	under item (iii) over a period of 30 years from the end of the plan year in which the 
99.22 	applicable change is effective must be calculated using the applicable interest assumption 
99.23 	specified in subdivision 8 in effect after any applicable change;
99.24 	(v) the level annual dollar or level percentage amortization contribution under item 
99.25 	(iv) must be added to the level annual dollar amortization contribution or level percentage 
99.26 	calculated under item (ii);
99.27 	(vi) the period in which the unfunded actuarial accrued liability amount determined 
99.28 	in item (iii) is amortized by the total level annual dollar or level percentage amortization 
99.29 	contribution computed under item (v) must be calculated using the interest assumption 
99.30 	specified in subdivision 8 in effect after any applicable change, rounded to the nearest 
99.31 	integral number of years, but not to exceed 30 years from the end of the plan year in which 
99.32 	the determination of the established date for full funding using the procedure set forth in this 
99.33 	clause is made and not to be less than the period of years beginning in the plan year in which 
99.34 	the determination of the established date for full funding using the procedure set forth in 
99.35 	this clause is made and ending by the date for full funding in effect before the change; and
100.1 	(vii) the period determined under item (vi) must be added to the date as of which 
100.2 	the actuarial valuation was prepared and the date obtained is the new established date 
100.3 	for full funding.
100.4 	(d) For the MERF division of the Public Employees Retirement Association, the 
100.5 	established date for full funding is June 30, 2031.
100.6 	(e) For the general employees retirement plan of the Public Employees Retirement 
100.7 	Association, the established date for full funding is June 30, 2031.
100.8 	(f) For the Teachers Retirement Association, the established date for full funding is 
100.9 	June 30, 2037.
100.10 	(g) For the correctional state employees retirement plan of the Minnesota State 
100.11 	Retirement System, the established date for full funding is June 30, 2038.
100.12 	(h) For the judges retirement plan, the established date for full funding is June 
100.13 	30, 2038.
100.14 	(i) For the public employees police and fire retirement plan, the established date 
100.15 	for full funding is June 30, 2038.
100.16 	(j) For the St. Paul Teachers Retirement Fund Association, the established date for 
100.17 	full funding is June 30 of the 25th year from the valuation date. In addition to other 
100.18 	requirements of this chapter, the annual actuarial valuation must contain an exhibit 
100.19 	indicating the funded ratio and the deficiency or sufficiency in annual contributions when 
100.20 	comparing liabilities to the market value of the assets of the fund as of the close of the 
100.21 	most recent fiscal year.
100.22 	(k) For the general state employees retirement plan of the Minnesota State 
100.23 	Retirement System, the established date for full funding is June 30, 2040.
100.24 	(l) For the retirement plans for which the annual actuarial valuation indicates an 
100.25 	excess of valuation assets over the actuarial accrued liability, the valuation assets in 
100.26 	excess of the actuarial accrued liability must be recognized as a reduction in the current 
100.27 	contribution requirements by an amount equal to the amortization of the excess expressed 
100.28 	as a level percentage of pay over a 30-year period beginning anew with each annual 
100.29 	actuarial valuation of the plan.

100.30 	EFFECTIVE DATE. This section is effective July 1, 2014, and applies to actuarial 
100.31 	valuation results prepared on or after that date.

100.32 	Sec. 3.  REPEALER.
 100.33 	Minnesota Statutes 2012, section 356.415, subdivision 3, is repealed.

101.1 	EFFECTIVE DATE. This section is effective June 30, 2014, and applies to 
101.2 	actuarial valuation reports prepared on or after that date.

101.3 	ARTICLE 11
101.4 	POSTRETIREMENT ADJUSTMENT TRIGGER PROCEDURES

101.5 	Section 1. Minnesota Statutes 2013 Supplement, section 354A.27, subdivision 6a, 
101.6 	is amended to read:
101.7 		Subd. 6a.Postretirement adjustment transition. (a) If the funded ratio of the 
101.8 	retirement plan based on the actuarial value of assets is at least 90 percent as reported in 
101.9 	the two most recent actuarial valuation valuations prepared under sections 356.214 and 
101.10 	356.215, this subdivision expires and subsequent postretirement adjustments are governed 
101.11 	by subdivision 7.
101.12 	(b) Each annuity or benefit recipient of the retirement plan who has been receiving 
101.13 	that annuity or benefit for at least 12 months as of the applicable January 1 is eligible to 
101.14 	receive a postretirement adjustment of one percent, payable on January 1.

101.15 	EFFECTIVE DATE. This section is effective July 1, 2015, unless Minnesota 
101.16 	Statutes, section 354A.27, subdivision 6a, is repealed by action of the 2014 legislature.

101.17 	Sec. 2. Minnesota Statutes 2012, section 354A.29, subdivision 8, is amended to read:
101.18 		Subd. 8.Calculation of postretirement adjustments; transitional provision. (a) 
101.19 	For purposes of computing postretirement adjustments for eligible benefit recipients of 
101.20 	the St. Paul Teachers Retirement Fund Association, the accrued liability funding ratio 
101.21 	based on the actuarial value of assets of the plan as determined by the two most recent 
101.22 	actuarial valuation valuations prepared under sections 356.214 and 356.215 determines 
101.23 	the postretirement increase, as follows:

101.24		Funding ratio
	Postretirement increase
	
101.25		Less than 80 percent
	1 percent
	
101.26
101.27		At least 80 percent but less than90 
percent
	2 percent
	
101.28 	(b) The amount determined under paragraph (a) is the full postretirement increase 
101.29 	to be applied as a permanent increase to the regular payment of each eligible member 
101.30 	on January 1 of the next calendar year. For any eligible member whose effective date 
101.31 	of benefit commencement occurred during the calendar year before the postretirement 
101.32 	increase is applied, the full increase amount must be prorated on the basis of whole 
101.33 	calendar quarters in benefit payment status in the calendar year prior to the January 1 on 
101.34 	which the postretirement increase is applied, calculated to the third decimal place.
102.1 	(c) If the accrued liability funding ratio based on the actuarial value of assets is at 
102.2 	least 90 percent in two consecutive actuarial valuations, this subdivision expires and 
102.3 	subsequent postretirement increases must be paid as specified in subdivision 9.

102.4 	EFFECTIVE DATE. This section is effective July 1, 2015.

102.5 	Sec. 3. Minnesota Statutes 2013 Supplement, section 356.415, subdivision 1a, is 
102.6 	amended to read:
102.7 		Subd. 1a.Annual postretirement adjustments; Minnesota State Retirement 
102.8 	System plans other than State Patrol retirement plan. (a) Retirement annuity, disability 
102.9 	benefit, or survivor benefit recipients of the legislators retirement plans, including 
102.10 	constitutional officers as specified in chapter 3A, the general state employees retirement 
102.11 	plan, the correctional state employees retirement plan, the unclassified state employees 
102.12 	retirement program, and the judges retirement plan are entitled to a postretirement 
102.13 	adjustment annually on January 1, as follows:
102.14 	(1) a postretirement increase of two percent must be applied each year, effective 
102.15 	on January 1, to the monthly annuity or benefit of each annuitant or benefit recipient 
102.16 	who has been receiving an annuity or a benefit for at least 18 full months before the 
102.17 	January 1 increase; and
102.18 	(2) for each annuitant or benefit recipient who has been receiving an annuity or 
102.19 	a benefit for at least six full months, an annual postretirement increase of 1/12 of two 
102.20 	percent for each month that the person has been receiving an annuity or benefit must be 
102.21 	applied, effective January 1, following the calendar year in which the person has been 
102.22 	retired for at least six months, but has been retired for less than 18 months.
102.23 	(b) The increases provided by this subdivision commence on January 1, 2011. 
102.24 	Increases under this subdivision for the general state employees retirement plan, the 
102.25 	correctional state employees retirement plan, or the judges retirement plan terminate on 
102.26 	December 31 of the calendar year in which thetwo prior consecutive actuarial valuation
102.27 	valuations prepared by the approved actuary under sections 356.214 and 356.215 and the 
102.28 	standards for actuarial work promulgated by the Legislative Commission on Pensions 
102.29 	and Retirement indicates that the market value of assets of the retirement plan equals or 
102.30 	exceeds 90 percent of the actuarial accrued liability of the retirement plan and increases 
102.31 	under subdivision 1 recommence after that date. Increases under this subdivision for 
102.32 	the legislators retirement plan or the elected state officers retirement plan terminate 
102.33 	on December 31 of the calendar year in which the actuarial valuation prepared by the 
102.34 	approved actuary under sections 356.214 and 356.215 and the standards for actuarial work 
102.35 	promulgated by the Legislative Commission on Pensions and Retirement indicates that the 
103.1 	market value of assets of the general state employees retirement plan equals or exceeds 
103.2 	90 percent of the actuarial accrued liability of the retirement plan and increases under 
103.3 	subdivision 1 recommence after that date.
103.4 	(c) An increase in annuity or benefit payments under this subdivision must be made 
103.5 	automatically unless written notice is filed by the annuitant or benefit recipient with the 
103.6 	executive director of the applicable covered retirement plan requesting that the increase 
103.7 	not be made.

103.8 	EFFECTIVE DATE. This section is effective July 1, 2014.

103.9 	Sec. 4. Minnesota Statutes 2012, section 356.415, subdivision 1d, is amended to read:
103.10 		Subd. 1d.Teachers Retirement Association annual postretirement adjustments.
 103.11 	(a) Retirement annuity, disability benefit, or survivor benefit recipients of the Teachers 
103.12 	Retirement Association are entitled to a postretirement adjustment annually on January 
103.13 	1, as follows:
103.14 	(1) for January 1, 2011, and January 1, 2012, no postretirement increase is payable;
103.15 	(2) for January 1, 2013, and each successive January 1 until funding stability is 
103.16 	restored, a postretirement increase of two percent must be applied each year, effective 
103.17 	on January 1, to the monthly annuity or benefit amount of each annuitant or benefit 
103.18 	recipient who has been receiving an annuity or a benefit for at least 18 full months prior 
103.19 	to the January 1 increase;
103.20 	(3) for January 1, 2013, and each successive January 1 until funding stability is 
103.21 	restored, for each annuitant or benefit recipient who has been receiving an annuity or a 
103.22 	benefit for at least six full months before the January 1 increase, an annual postretirement 
103.23 	increase of 1/12 of two percent for each month the person has been receiving an annuity or 
103.24 	benefit must be applied, effective January 1, for which the person has been retired for at 
103.25 	least six months but less than 18 months;
103.26 	(4) for each January 1 following the restoration of funding stability, a postretirement 
103.27 	increase of 2.5 percent must be applied each year, effective January 1, to the monthly 
103.28 	annuity or benefit amount of each annuitant or benefit recipient who has been receiving an 
103.29 	annuity or a benefit for at least 18 full months prior to the January 1 increase; and
103.30 	(5) for each January 1 following the restoration of funding stability, for each 
103.31 	annuitant or benefit recipient who has been receiving an annuity or a benefit for at least 
103.32 	six full months before the January 1 increase, an annual postretirement increase of 1/12 
103.33 	of 2.5 percent for each month the person has been receiving an annuity or benefit must 
103.34 	be applied, effective January 1, for which the person has been retired for at least six 
103.35 	months but less than 18 months.
104.1 	(b) Funding stability is restored when the market value of assets of the Teachers 
104.2 	Retirement Association equals or exceeds 90 percent of the actuarial accrued liabilities 
104.3 	of the Teachers Retirement Association in the two most recent prior actuarial valuation
104.4 	valuations prepared under section 356.215 and the standards for actuarial work by the 
104.5 	approved actuary retained by the Teachers Retirement Association under section 356.214.
104.6 	(c) An increase in annuity or benefit payments under this section must be made 
104.7 	automatically unless written notice is filed by the annuitant or benefit recipient with the 
104.8 	executive director of the Teachers Retirement Association requesting that the increase 
104.9 	not be made.
104.10 	(d) The retirement annuity payable to a person who retires before becoming eligible 
104.11 	for Social Security benefits and who has elected the optional payment as provided in 
104.12 	section 354.35 must be treated as the sum of a period-certain retirement annuity and a life 
104.13 	retirement annuity for the purposes of any postretirement adjustment. The period-certain 
104.14 	retirement annuity plus the life retirement annuity must be the annuity amount payable 
104.15 	until age 62, 65, or normal retirement age, as selected by the member at retirement, for an 
104.16 	annuity amount payable under section 354.35. A postretirement adjustment granted on 
104.17 	the period-certain retirement annuity must terminate when the period-certain retirement 
104.18 	annuity terminates.

104.19 	EFFECTIVE DATE. This section is effective July 1, 2015.

104.20 	Sec. 5. Minnesota Statutes 2013 Supplement, section 356.415, subdivision 1e, is 
104.21 	amended to read:
104.22 		Subd. 1e.Annual postretirement adjustments; State Patrol retirement plan.
 104.23 	(a) Retirement annuity, disability benefit, or survivor benefit recipients of the State Patrol 
104.24 	retirement plan are entitled to a postretirement adjustment annually on January 1, as 
104.25 	follows:
104.26 	(1) a postretirement increase of one percent must be applied each year, effective on 
104.27 	January 1, to the monthly annuity or benefit of each annuitant or benefit recipient who 
104.28 	has been receiving an annuity or a benefit for at least 18 full months before the January 1 
104.29 	increase; and
104.30 	(2) for each annuitant or benefit recipient who has been receiving an annuity or a 
104.31 	benefit for at least six full months, an annual postretirement increase of 1/12 of one percent 
104.32 	for each month that the person has been receiving an annuity or benefit must be applied, 
104.33 	effective January 1, following the calendar year in which the person has been retired for at 
104.34 	least six months, but has been retired for less than 18 months.
105.1 	(b) The increases provided by this subdivision commence on January 1, 2014. 
105.2 	Increases under paragraph (a) for the State Patrol retirement plan terminate on December 
105.3 	31 of the calendar year in which thetwo prior consecutive actuarial valuationvaluations 
105.4 	prepared by the approved actuary under sections 356.214 and 356.215 and the standards 
105.5 	for actuarial work promulgated by the Legislative Commission on Pensions and 
105.6 	Retirement indicates that the market value of assets of the retirement plan equals or 
105.7 	exceeds 85 percent of the actuarial accrued liability of the retirement plan and increases 
105.8 	under paragraph (c) recommence after that date.
105.9 	(c) Retirement annuity, disability benefit, or survivor benefit recipients of the State 
105.10 	Patrol retirement plan are entitled to a postretirement adjustment annually on January 
105.11 	1, as follows:
105.12 	(1) a postretirement increase of 1.5 percent must be applied each year, effective on 
105.13 	January 1, to the monthly annuity or benefit of each annuitant or benefit recipient who 
105.14 	has been receiving an annuity or a benefit for at least 18 full months before the January 1 
105.15 	increase; and
105.16 	(2) for each annuitant or benefit recipient who has been receiving an annuity or a 
105.17 	benefit for at least six full months, an annual postretirement increase of 1/12 of 1.5 percent 
105.18 	for each month that the person has been receiving an annuity or benefit must be applied, 
105.19 	effective January 1, following the calendar year in which the person has been retired for at 
105.20 	least six months, but has been retired for less than 18 months.
105.21 	(d) Increases under paragraph (c) for the State Patrol retirement plan terminate on 
105.22 	December 31 of the calendar year in which thetwo prior consecutive actuarial valuation
105.23 	valuations prepared by the approved actuary under sections 356.214 and 356.215 and 
105.24 	the standards for actuarial work adopted by the Legislative Commission on Pensions 
105.25 	and Retirement indicates that the market value of assets of the retirement plan equals or 
105.26 	exceeds 90 percent of the actuarial accrued liability of the retirement plan and increases 
105.27 	under subdivision 1 recommence after that date.
105.28 	(e) An increase in annuity or benefit payments under this subdivision must be made 
105.29 	automatically unless written notice is filed by the annuitant or benefit recipient with the 
105.30 	executive director of the applicable covered retirement plan requesting that the increase 
105.31 	not be made.

105.32 	EFFECTIVE DATE. This section is effective July 1, 2014.

105.33 	Sec. 6. Minnesota Statutes 2013 Supplement, section 356.415, subdivision 1f, is 
105.34 	amended to read:
106.1 		Subd. 1f.Annual postretirement adjustments; Minnesota State Retirement 
106.2 	System judges retirement plan. (a) The increases provided under this subdivision begin 
106.3 	on January 1, 2014, and are in lieu of increases under subdivision 1 or 1a for retirement 
106.4 	annuity, disability benefit, or survivor benefit recipients of the judges retirement plan.
106.5 	(b) Retirement annuity, disability benefit, or survivor benefit recipients of the 
106.6 	judges retirement plan are entitled to a postretirement adjustment annually on January 
106.7 	1, as follows:
106.8 	(1) a postretirement increase of 1.75 percent must be applied each year, effective 
106.9 	on January 1, to the monthly annuity or benefit of each annuitant or benefit recipient 
106.10 	who has been receiving an annuity or a benefit for at least 18 full months before the 
106.11 	January 1 increase; and
106.12 	(2) for each annuitant or benefit recipient who has been receiving an annuity or a 
106.13 	benefit for at least six full months, an annual postretirement increase of 1/12 of 1.75 
106.14 	percent for each month that the person has been receiving an annuity or benefit must be 
106.15 	applied, effective January 1, following the calendar year in which the person has been 
106.16 	retired for at least six months, but has been retired for less than 18 months.
106.17 	(c) Increases under this subdivision terminate on December 31 of the calendar 
106.18 	year in which thetwo prior consecutive actuarial valuationvaluations prepared by the 
106.19 	approved actuary under sections 356.214 and 356.215 and the standards for actuarial work 
106.20 	promulgated by the Legislative Commission on Pensions and Retirement indicates that 
106.21 	the market value of assets of the judges retirement plan equals or exceeds 70 percent of 
106.22 	the actuarial accrued liability of the retirement plan. Increases under subdivision 1 or 1a, 
106.23 	whichever is applicable, begin on the January 1 next following that date.
106.24 	(d) An increase in annuity or benefit payments under this subdivision must be made 
106.25 	automatically unless written notice is filed by the annuitant or benefit recipient with the 
106.26 	executive director of the applicable covered retirement plan requesting that the increase 
106.27 	not be made.

106.28 	EFFECTIVE DATE. This section is effective July 1, 2014.

106.29 	ARTICLE 12
106.30 	VOLUNTEER FIREFIGHTER RELIEF ASSOCIATION CHANGES

106.31 	Section 1. Minnesota Statutes 2013 Supplement, section 69.051, subdivision 1a, 
106.32 	is amended to read:
106.33 		Subd. 1a.Financial statement. (a) The board of each volunteer firefighters relief 
106.34 	association, as defined in section 424A.001, subdivision 4, that is not required to file a 
107.1 	financial report and audit under subdivision 1 must prepare a detailed statement of the 
107.2 	financial affairs for the preceding fiscal year of the relief association's special and general 
107.3 	funds in the style and form prescribed by the state auditor. The detailed statement must 
107.4 	show:
107.5 	(1) the sources and amounts of all money received;
107.6 	(2) all disbursements, accounts payable and accounts receivable;
107.7 	(3) the amount of money remaining in the treasury;
107.8 	(4) total assets, including a listing of all investments;
107.9 	(5) the accrued liabilities; and
107.10 	(6) all other items necessary to show accurately the revenues and expenditures and 
107.11 	financial position of the relief association.
107.12 	(b) The detailed financial statement required under paragraph (a) must be certified 
107.13 	by an independenta certified public accountant or by the state auditor or by the auditor or 
107.14 	accountant who regularly examines or audits the financial transactions of the municipality. 
107.15 	In addition to certifying the financial condition of the special and general funds of the relief 
107.16 	association, the accountant or auditor conducting the examination shall give an opinion 
107.17 	as to the condition of the special and general funds of the relief association, and shall 
107.18 	comment upon any exceptions to the report. The independent accountant or auditor must 
107.19 	have at least five years of public accounting, auditing, or similar experience, and must not 
107.20 	be an active, inactive, or retired member of the relief association or the fire department.
107.21 	(c) The detailed statement required under paragraph (a) must be countersigned by:
107.22 	(1) the municipal clerk or clerk-treasurer of the municipality; or
107.23 	(2) where applicable, by the municipal clerk or clerk-treasurer of the largest 
107.24 	municipality in population which contracts with the independent nonprofit firefighting 
107.25 	corporation if the relief association is a subsidiary of an independent nonprofit firefighting 
107.26 	corporation and by the secretary of the independent nonprofit firefighting corporation; or
107.27 	(3) by the chief financial official of the county in which the volunteer firefighter 
107.28 	relief association is located or primarily located if the relief association is associated with 
107.29 	a fire department that is not located in or associated with an organized municipality.
107.30 	(d) The volunteer firefighters' relief association board must file the detailed statement 
107.31 	required under paragraph (a) in the relief association office for public inspection and 
107.32 	present it to the governing body of the municipality within 45 days after the close of the 
107.33 	fiscal year, and must submit a copy of the detailed statement to the state auditor within 90 
107.34 	days of the close of the fiscal year.

107.35 	EFFECTIVE DATE. This section is effective the day following final enactment.

108.1 	Sec. 2. Minnesota Statutes 2013 Supplement, section 69.051, subdivision 3, is 
108.2 	amended to read:
108.3 		Subd. 3.Report by certain municipalities; exceptions. (a) The chief 
108.4 	administrative officer of each municipality which has an organized fire department but 
108.5 	which does not have a firefighters' relief association governed by section 69.77 or sections 
108.6 	424A.091 to 424A.095 and which is not exempted under paragraph (b) or (c) shall annually 
108.7 	prepare a detailed financial report of the receipts and disbursements by the municipality 
108.8 	for fire protection service during the preceding calendar year on a form prescribed by the 
108.9 	state auditor. The financial report must contain any information which the state auditor 
108.10 	deems necessary to disclose the sources of receipts and the purpose of disbursements for 
108.11 	fire protection service. The financial report must be signed by the municipal clerk or 
108.12 	clerk-treasurer of the municipality. The financial report must be filed by the municipal clerk 
108.13 	or clerk-treasurer with the state auditor on or before July 1 annually. The municipality does 
108.14 	not qualify initially to receive, and is not entitled subsequently to retain, state aid under 
108.15 	this chapter if the financial reporting requirement or the applicable requirements of this 
108.16 	chapter or any other statute or special law have not been complied with or are not fulfilled.
108.17 	(b) Each municipality that has an organized fire department and provides retirement 
108.18 	coverage to its firefighters through the voluntary statewide lump-sum volunteer firefighter 
108.19 	retirement plan under chapter 353G qualifies to have fire state aid transmitted to and 
108.20 	retained in the statewide lump-sum volunteer firefighter retirement fund without filing 
108.21 	a detailed financial report if the executive director of the Public Employees Retirement 
108.22 	Association certifies compliance by the municipality with the requirements of sections 
108.23 	353G.04 and 353G.08, paragraph (e), and certifies conformity by the applicable fire chief 
108.24 	with the requirements of section 353G.07.
108.25 	(c) Each municipality qualifies to receive fire state aid under this chapter without 
108.26 	filing a financial report under paragraph (a) if the municipality:
108.27 	(1) has an organized fire department;
108.28 	(2) does not have a volunteer firefighters relief association directly associated with 
108.29 	its fire department;
108.30 	(3) does not participate in the statewide lump-sum volunteer firefighter retirement 
108.31 	plan under chapter 353G;
108.32 	(4) provides retirement coverage to its firefighters through the public employees 
108.33 	police and fire retirement plan under sections 353.63 to 353.68; and
108.34 	(5) is certified by the executive director of the Public Employees Retirement 
108.35 	Association to the state auditor to have had an employer contribution under section 
109.1 	353.65, subdivision 3, for its firefighters for the immediately prior calendar year equal to 
109.2 	or greater than its fire state aid for the immediately prior calendar year.

109.3 	EFFECTIVE DATE. This section is effective the day following final enactment 
109.4 	and applies to fire state aid payable on October 1, 2014.

109.5 	Sec. 3. Minnesota Statutes 2012, section 356A.06, subdivision 7, is amended to read:
109.6 		Subd. 7.Expanded list of authorized investment securities. (a) Authority. A 
109.7 	covered pension plan not described by subdivision 6, paragraph (a), is an expanded list 
109.8 	plan and shall invest its assets as specified in this subdivision. The governing board of an 
109.9 	expanded list plan may select and appoint investment agencies to act for or on its behalf.
109.10 	(b) Securities generally; investment forms. An expanded list plan is authorized 
109.11 	to purchase, sell, lend, and exchange the investment securities authorized under this 
109.12 	subdivision, including puts and call options and future contracts traded on a contract 
109.13 	market regulated by a governmental agency or by a financial institution regulated by 
109.14 	a governmental agency. These securities may be owned directly or through shares 
109.15 	in exchange-traded or mutual funds, or as units in commingled trusts, subject to any 
109.16 	limitations specified in this subdivision.
109.17 	(c) Government obligations. An expanded list plan is authorized to invest funds in 
109.18 	governmental bonds, notes, bills, mortgages, and other evidences of indebtedness if the 
109.19 	issue is backed by the full faith and credit of the issuer or the issue is rated among the top 
109.20 	four quality rating categories by a nationally recognized rating agency. The obligations in 
109.21 	which funds may be invested under this paragraph are guaranteed or insured issues of:
109.22 	(1) the United States, one of its agencies, one of its instrumentalities, or an 
109.23 	organization created and regulated by an act of Congress;
109.24 	(2) the Dominion of Canada or one of its provinces if the principal and interest are 
109.25 	payable in United States dollars;
109.26 	(3) a state or one of its municipalities, political subdivisions, agencies, or 
109.27 	instrumentalities; and
109.28 	(4) a United States government-sponsored organization of which the United States is 
109.29 	a member if the principal and interest are payable in United States dollars.
109.30 	(d) Investment-grade corporate obligations. An expanded list plan is authorized 
109.31 	to invest funds in bonds, notes, debentures, transportation equipment obligations, or 
109.32 	any other longer term evidences of indebtedness issued or guaranteed by a corporation 
109.33 	organized under the laws of the United States or any of its states, or the Dominion of 
109.34 	Canada or any of its provinces if:
109.35 	(1) the principal and interest are payable in United States dollars; and
110.1 	(2) the obligations are rated among the top four quality categories by a nationally 
110.2 	recognized rating agency.
110.3 	(e) Below-investment-grade corporate obligations. An expanded list plan is 
110.4 	authorized to invest in unrated corporate obligations or in corporate obligations that are 
110.5 	not rated among the top four quality categories by a nationally recognized rating agency if:
110.6 	(1) the aggregate value of these obligations does not exceed five percent of the 
110.7 	covered pension plan's market value;
110.8 	(2) the covered pension plan's participation is limited to 50 percent of a single 
110.9 	offering subject to this paragraph; and
110.10 	(3) the covered pension plan's participation is limited to 25 percent of an issuer's 
110.11 	obligations subject to this paragraph.
110.12 	(f) Other obligations. (1) An expanded list plan is authorized to invest funds in:
110.13 	(i) bankers acceptances and deposit notes if issued by a United States bank that is 
110.14 	rated in the highest four quality categories by a nationally recognized rating agency;
110.15 	(ii) certificates of deposit if issued by a United States bank or savings institution 
110.16 	rated in the highest four quality categories by a nationally recognized rating agency or 
110.17 	whose certificates of deposit are fully insured by federal agencies, or if issued by a credit 
110.18 	union in an amount within the limit of the insurance coverage provided by the National 
110.19 	Credit Union Administration;
110.20 	(iii) commercial paper if issued by a United States corporation or its Canadian 
110.21 	subsidiary and if rated in the highest two quality categories by a nationally recognized 
110.22 	rating agency;
110.23 	(iv) mortgage securities and asset-backed securities if rated in the top four quality 
110.24 	categories by a nationally recognized rating agency;
110.25 	(v) repurchase agreements and reverse repurchase agreements if collateralized with 
110.26 	letters of credit or securities authorized in this section;
110.27 	(vi) guaranteed investment contracts if issued by an insurance company or a bank 
110.28 	that is rated in the top four quality categories by a nationally recognized rating agency 
110.29 	or alternative guaranteed investment contracts if the underlying assets comply with the 
110.30 	requirements of this subdivision;
110.31 	(vii) savings accounts if fully insured by a federal agency; and
110.32 	(viii) guaranty fund certificates, surplus notes, or debentures if issued by a domestic 
110.33 	mutual insurance company.
110.34 	(2) Sections 16A.58, 16C.03, subdivision 4, and 16C.05 do not apply to certificates 
110.35 	of deposit and collateralization agreements executed by the covered pension plan under 
110.36 	clause (1), item (ii).
111.1 	(3) In addition to investments authorized by clause (1), item (iv), an expanded list 
111.2 	plan is authorized to purchase from the Minnesota Housing Finance Agency all or any part 
111.3 	of a pool of residential mortgages, not in default, that has previously been financed by the 
111.4 	issuance of bonds or notes of the agency. The covered pension plan may also enter into 
111.5 	a commitment with the agency, at the time of any issue of bonds or notes, to purchase 
111.6 	at a specified future date, not exceeding 12 years from the date of the issue, the amount 
111.7 	of mortgage loans then outstanding and not in default that have been made or purchased 
111.8 	from the proceeds of the bonds or notes. The covered pension plan may charge reasonable 
111.9 	fees for any such commitment and may agree to purchase the mortgage loans at a price 
111.10 	sufficient to produce a yield to the covered pension plan comparable, in its judgment, 
111.11 	to the yield available on similar mortgage loans at the date of the bonds or notes. The 
111.12 	covered pension plan may also enter into agreements with the agency for the investment 
111.13 	of any portion of the funds of the agency. The agreement must cover the period of the 
111.14 	investment, withdrawal privileges, and any guaranteed rate of return.
111.15 	(g) Corporate stocks. An expanded list plan is authorized to invest in stocks or 
111.16 	convertible issues of any corporation organized under the laws of the United States or any 
111.17 	of its states, any corporation organized under the laws of the Dominion of Canada or any 
111.18 	of its provinces, or any corporation listed on an exchange that is regulated by an agency of 
111.19 	the United States or of the Canadian national government.
111.20 	An investment in any corporation must not exceed five percent of the total 
111.21 	outstanding shares of that corporation, except that an expanded list plan may hold up 
111.22 	to 20 percent of the shares of a real estate investment trust and up to 20 percent of the 
111.23 	shares of a closed mutual fund.
111.24 	(h) Other investments. (1) In addition to the investments authorized in paragraphs 
111.25 	(b) to (g), and subject to the provisions in clause (2), an expanded list plan is authorized 
111.26 	to invest funds in:
111.27 	(i) equity and debt investment businesses through participation in limited 
111.28 	partnerships, trusts, private placements, limited liability corporations, limited liability 
111.29 	companies, limited liability partnerships, and corporations;
111.30 	(ii) real estate ownership interests or loans secured by mortgages or deeds of trust 
111.31 	or shares of real estate investment trusts, through investment in limited partnerships, 
111.32 	bank-sponsored collective funds, trusts, mortgage participation agreements, and insurance 
111.33 	company commingled accounts, including separate accounts;
111.34 	(iii) resource investments through limited partnerships, trusts, private placements, 
111.35 	limited liability corporations, limited liability companies, limited liability partnerships, 
111.36 	and corporations; and
112.1 	(iv) international securities.
112.2 	(2) The investments authorized in clause (1) must conform to the following 
112.3 	provisions:
112.4 	(i) the aggregate value of all investments made under clause (1), items (i), (ii), and 
112.5 	(iii), may not exceed 35 percent of the market value of the fund for which the expanded 
112.6 	list plan is investing;
112.7 	(ii) there must be at least four unrelated owners of the investment other than the 
112.8 	expanded list plan for investments made under clause (1), item (i), (ii), or (iii);
112.9 	(iii) the expanded list plan's participation in an investment vehicle is limited to 20 
112.10 	percent thereof for investments made under clause (1), item (i), (ii), or (iii);
112.11 	(iv) the expanded list plan's participation in a limited partnership does not include a 
112.12 	general partnership interest or other interest involving general liability. The expanded list 
112.13 	plan may not engage in any activity as a limited partner which creates general liability; and
112.14 	(v) the aggregate value of all unrated obligations and obligations that are not rated 
112.15 	among the top four quality categories by a nationally recognized rating agency authorized 
112.16 	by paragraph (e) and clause (1), item (iv), must not exceed five percent of the covered 
112.17 	plan's market value; and
112.18 	(vi) for volunteer firefighter relief associations, emerging market equity and 
112.19 	international debt investments authorized under clause (1), item (iv), must not exceed 15 
112.20 	percent of the association's special fund market value.
112.21 	(i) Supplemental plan investments. The governing body of an expanded list plan 
112.22 	may certify assets to the State Board of Investment for investment under section 11A.17.
112.23 	(j) Asset mix limitations. The aggregate value of an expanded list plan's 
112.24 	investments under paragraphs (g) and (h) and equity investments under paragraph (i), 
112.25 	regardless of the form in which these investments are held, must not exceed 85 percent of 
112.26 	the covered plan's market value.

112.27 	EFFECTIVE DATE. This section is effective the day following final enactment.

112.28 	Sec. 4. Minnesota Statutes 2012, section 356A.06, subdivision 7a, is amended to read:
112.29 		Subd. 7a.Restrictions. Any agreement to lend securities must be concurrently 
112.30 	collateralized with cash or securities with a market value of not less than 100 percent of the 
112.31 	market value of the loaned securities at the time of the agreement. For a covered pension 
112.32 	authorized to purchase put and call options and futures contracts under subdivision 7, any 
112.33 	agreement for put and call options and futures contracts may only be entered into with a 
112.34 	fully offsetting amount of cash or securities. Only securities authorized by this section, 
113.1 	excluding those under subdivision 7, paragraph (g) (h), clause (1), items (i) to (iv), may be 
113.2 	accepted as collateral or offsetting securities.

113.3 	EFFECTIVE DATE. This section is effective the day following final enactment.

113.4 	Sec. 5. Minnesota Statutes 2012, section 424A.015, is amended by adding a 
113.5 	subdivision to read:
113.6 		Subd. 6.Governing benefit plan provisions. A service pension or ancillary benefit 
113.7 	payable under this chapter is governed by and must be calculated under the general statute, 
113.8 	special law, relief association articles of incorporation, and relief association bylaw 
113.9 	provisions applicable on the date on which the member separated from active service with 
113.10 	the fire department and active membership in the relief association.

113.11 	EFFECTIVE DATE. This section is effective the day following final enactment.

113.12 	Sec. 6. Minnesota Statutes 2012, section 424A.016, subdivision 4, is amended to read:
113.13 		Subd. 4.Individual accounts. (a) An individual account must be established for 
113.14 	each firefighter who is a member of the relief association.
113.15 	(b) To each individual active member account must be credited an equal share of:
113.16 	(1) any amounts of fire state aid received by the relief association;
113.17 	(2) any amounts of municipal contributions to the relief association raised from 
113.18 	levies on real estate or from other available municipal revenue sources exclusive of fire 
113.19 	state aid; and
113.20 	(3) any amounts equal to the share of the assets of the special fund to the credit of:
113.21 	(i) any former member who terminated active service with the fire department to 
113.22 	which the relief association is associated before meeting the minimum service requirement 
113.23 	provided for in subdivision 2, paragraph (b), and has not returned to active service with 
113.24 	the fire department for a period no shorter than five years; or
113.25 	(ii) any retired member who retired before obtaining a full nonforfeitable interest in 
113.26 	the amounts credited to the individual member account under subdivision 2, paragraph 
113.27 	(b), and any applicable provision of the bylaws of the relief association. In addition, any 
113.28 	investment return on the assets of the special fund must be credited in proportion to the 
113.29 	share of the assets of the special fund to the credit of each individual active member 
113.30 	account. Administrative expenses of the relief association payable from the special 
113.31 	fund may be deducted from individual accounts in a manner specified in the bylaws of 
113.32 	the relief association.
114.1 	(c) If the bylaws so permit and as the bylaws define, the relief association may credit 
114.2 	any investment return on the assets of the special fund to the accounts of inactive members.
114.3 	(d) Amounts to be credited to individual accounts must be allocated uniformly 
114.4 	for all years of active service and allocations must be made for all years of service, 
114.5 	except for caps on service credit if so provided in the bylaws of the relief association. 
114.6 	Amounts forfeited under paragraph (b), clause (3), before a resumption of active service 
114.7 	and membership under section 424A.01, subdivision 6, remain forfeited and may not be 
114.8 	reinstated upon the resumption of active service and membership. The allocation method 
114.9 	may utilize monthly proration for fractional years of service, as the bylaws or articles of 
114.10 	incorporation of the relief association so provide. The bylaws or articles of incorporation 
114.11 	may define a "month," but the definition must require a calendar month to have at least 16 
114.12 	days of active service. If the bylaws or articles of incorporation do not define a "month," a 
114.13 	"month" is a completed calendar month of active service measured from the member's 
114.14 	date of entry to the same date in the subsequent month.
114.15 	(e) At the time of retirement under subdivision 2 and any applicable provision of the 
114.16 	bylaws of the relief association, a retiring member is entitled to that portion of the assets 
114.17 	of the special fund to the credit of the member in the individual member account which is 
114.18 	nonforfeitable under subdivision 3 and any applicable provision of the bylaws of the relief 
114.19 	association based on the number of years of service to the credit of the retiring member.
114.20 	(f) Annually, the secretary of the relief association shall certify the individual 
114.21 	account allocations to the state auditor at the same time that the annual financial statement 
114.22 	or financial report and audit of the relief association, whichever applies, is due under 
114.23 	section 69.051.

114.24 	EFFECTIVE DATE. This section is effective the day following final enactment.

114.25 	Sec. 7. Minnesota Statutes 2013 Supplement, section 424A.016, subdivision 6, is 
114.26 	amended to read:
114.27 		Subd. 6.Deferred service pensions. (a) A member of a relief association is entitled 
114.28 	to a deferred service pension if the member separates from active service and membership 
114.29 	and has completed the minimum service and membership requirements in subdivision 2. 
114.30 	The requirement that a member separate from active service and membership is waived 
114.31 	for persons who have discontinued their volunteer firefighter duties and who are employed 
114.32 	on a full-time basis under section 424A.015, subdivision 1.
114.33 	(b) The deferred service pension is payable when the former member reaches at 
114.34 	least age 50, or at least the minimum age specified in the bylaws governing the relief 
115.1 	association if that age is greater than age 50, and when the former member makes a valid 
115.2 	written application.
115.3 	(c) A defined contribution relief association may, if its governing bylaws so provide, 
115.4 	credit interest or additional investment performance on the deferred lump-sum service 
115.5 	pension during the period of deferral. If provided for in the bylaws, the interest must be 
115.6 	paid:
115.7 	(1) at the investment performance rate actually earned on that portion of the assets 
115.8 	if the deferred benefit amount is invested by the relief association in a separate account 
115.9 	established and maintained by the relief association;
115.10 	(2) at the investment performance rate actually earned on that portion of the assets 
115.11 	if the deferred benefit amount is invested in a separate investment vehicle held by the 
115.12 	relief association; or
115.13 	(3) at the investment return on the assets of the special fund of the defined contribution 
115.14 	volunteer firefighter relief association in proportion to the share of the assets of the special 
115.15 	fund to the credit of each individual deferred member account through the accounting date 
115.16 	on which the investment return is recognized by and credited to the special fund.
115.17 	(d) Unless the bylaws of a relief association that has elected to pay interest or 
115.18 	additional investment performance on deferred lump-sum service pensions under 
115.19 	paragraph (c) specifies a different interest or additional investment performance method, 
115.20 	including the interest or additional investment performance period starting date and ending 
115.21 	date, the interest or additional investment performance on a deferred service pension 
115.22 	is creditable as follows:
115.23 	(1) for a relief association that has elected to pay interest or additional investment 
115.24 	performance under paragraph (c), clause (1) or (3), beginning on the date that the 
115.25 	member separates from active service and membership and ending on the accounting 
115.26 	date immediately before the deferred member commences receipt of the deferred service 
115.27 	pension; or
115.28 	(2) for a relief association that has elected to pay interest or additional investment 
115.29 	performance under paragraph (c), clause (2), beginning on the date that the member 
115.30 	separates from active service and membership and ending on the date that the separate 
115.31 	investment vehicle is valued immediately before the date on which the deferred member 
115.32 	commences receipt of the deferred service pension.
115.33 	(e) The deferred service pension is governed by and must be calculated under 
115.34 	the general statute, special law, relief association articles of incorporation, and relief 
115.35 	association bylaw provisions applicable on the date on which the member separated from 
115.36 	active service with the fire department and active membership in the relief association.

116.1 	EFFECTIVE DATE. This section is effective the day following final enactment.

116.2 	Sec. 8. Minnesota Statutes 2012, section 424A.016, subdivision 7, is amended to read:
116.3 		Subd. 7.Limitation on ancillary benefits. (a) A defined contribution relief 
116.4 	association may only pay an ancillary benefit which would constitute an authorized 
116.5 	disbursement as specified in section 424A.05. The ancillary benefit for active members 
116.6 	must equal the vested and nonvested amount of the individual account of the member.
116.7 	(b) For deferred members, the ancillary benefit must equal the vested amount of 
116.8 	the individual account of the member. For the recipient of installment payments of a 
116.9 	service pension, the ancillary benefit must equal the remaining balance in the individual 
116.10 	account of the recipient.
116.11 	(c) If the bylaws permit and as defined by the bylaws, the relief association may pay 
116.12 	an ancillary benefit to, or on behalf of, a member who is not active or deferred.
116.13 	(d)(1) If a survivor or death benefit is payable under the articles of incorporation or 
116.14 	bylaws, the benefit must be paid:
116.15 	(i) as a survivor benefit to the surviving spouse of the deceased firefighter;
116.16 	(ii) as a survivor benefit to the surviving children of the deceased firefighter if no 
116.17 	surviving spouse;
116.18 	(iii) as a survivor benefit to a designated beneficiary of the deceased firefighter if no 
116.19 	surviving spouse or surviving children; or
116.20 	(iv) as a death benefit to the estate of the deceased active or deferred firefighter if no 
116.21 	surviving spouse, no surviving children, and no beneficiary designated.
116.22 	(2) If there are no surviving children, the surviving spouse may waive, in writing, 
116.23 	wholly or partially, the spouse's entitlement to a survivor benefit.
116.24 	(d) (e) For purposes of this section, for a defined contribution volunteer fire relief 
116.25 	association, a trust created under chapter 501B may be a designated beneficiary. If a trust 
116.26 	payable to the surviving children organized under chapter 501B has been established as 
116.27 	authorized by this section and there is no surviving spouse, the survivor benefit may be 
116.28 	paid to the trust, notwithstanding the requirements of this section.

116.29 	EFFECTIVE DATE. This section is effective the day following final enactment.

116.30 	Sec. 9. Minnesota Statutes 2013 Supplement, section 424A.02, subdivision 3, is 
116.31 	amended to read:
116.32 		Subd. 3.Flexible service pension maximums. (a) Annually on or before August 
116.33 	1 as part of the certification of the financial requirements and minimum municipal 
116.34 	obligation determined under section 424A.092, subdivision 4, or 424A.093, subdivision 
117.1 	5, as applicable, the secretary or some other official of the relief association designated 
117.2 	in the bylaws of each defined benefit relief association shall calculate and certify to the 
117.3 	governing body of the applicable qualified municipality the average amount of available 
117.4 	financing per active covered firefighter for the most recent three-year period. The amount 
117.5 	of available financing includes any amounts of fire state aid received or receivable by the 
117.6 	relief association, any amounts of municipal contributions to the relief association raised 
117.7 	from levies on real estate or from other available revenue sources exclusive of fire state 
117.8 	aid, and one-tenth of the amount of assets in excess of the accrued liabilities of the relief 
117.9 	association calculated under section 424A.092, subdivision 2; 424A.093, subdivisions 2
117.10 	and 4; or 424A.094, subdivision 2, if any.
117.11 	(b) The maximum service pension which the defined benefit relief association has 
117.12 	authority to provide for in its bylaws for payment to a member retiring after the calculation 
117.13 	date when the minimum age and service requirements specified in subdivision 1 are met 
117.14 	must be determined using the table in paragraph (c) or (d), whichever applies.
117.15 	(c) For a defined benefit relief association where the governing bylaws provide for 
117.16 	a monthly service pension to a retiring member, the maximum monthly service pension 
117.17 	amount per month for each year of service credited that may be provided for in the bylaws 
117.18 	is the greater of the service pension amount provided for in the bylaws on the date of the 
117.19 	calculation of the average amount of the available financing per active covered firefighter 
117.20 	or the maximum service pension figure corresponding to the average amount of available 
117.21 	financing per active covered firefighter:

117.22
117.23
117.24	Minimum Average Amount of Available 
Financing per Firefighter
	Maximum Service Pension Amount 
Payable per Month for Each 
Year of Service
	
117.25	$ ...
		$ .25
		
117.26	41
		.50
		
117.27	81
		1.00
		
117.28	122
		1.50
		
117.29	162
		2.00
		
117.30	203
		2.50
		
117.31	243
		3.00
		
117.32	284
		3.50
		
117.33	324
		4.00
		
117.34	365
		4.50
		
117.35	405
		5.00
		
117.36	486
		6.00
		
117.37	567
		7.00
		
117.38	648
		8.00
		
117.39	729
		9.00
		
118.1	810
		10.00
		
118.2	891
		11.00
		
118.3	972
		12.00
		
118.4	1053
		13.00
		
118.5	1134
		14.00
		
118.6	1215
		15.00
		
118.7	1296
		16.00
		
118.8	1377
		17.00
		
118.9	1458
		18.00
		
118.10	1539
		19.00
		
118.11	1620
		20.00
		
118.12	1701
		21.00
		
118.13	1782
		22.00
		
118.14	1823
		22.50
		
118.15	1863
		23.00
		
118.16	1944
		24.00
		
118.17	2025
		25.00
		
118.18	2106
		26.00
		
118.19	2187
		27.00
		
118.20	2268
		28.00
		
118.21	2349
		29.00
		
118.22	2430
		30.00
		
118.23	2511
		31.00
		
118.24	2592
		32.00
		
118.25	2673
		33.00
		
118.26	2754
		34.00
		
118.27	2834
		35.00
		
118.28	2916
		36.00
		
118.29	2997
		37.00
		
118.30	3078
		38.00
		
118.31	3159
		39.00
		
118.32	3240
		40.00
		
118.33	3321
		41.00
		
118.34	3402
		42.00
		
118.35	3483
		43.00
		
118.36	3564
		44.00
		
118.37	3645
		45.00
		
118.38	3726
		46.00
		
118.39	3807
		47.00
		
118.40	3888
		48.00
		
118.41	3969
		49.00
		
118.42	4050
		50.00
		
118.43	4131
		51.00
		
119.1	4212
		52.00
		
119.2	4293
		53.00
		
119.3	4374
		54.00
		
119.4	4455
		55.00
		
119.5	4536
		56.00
		
119.6	Effective beginning December 31, 2008
			
119.7	4617
		57.00
		
119.8	4698
		58.00
		
119.9	4779
		59.00
		
119.10	4860
		60.00
		
119.11	4941
		61.00
		
119.12	5022
		62.00
		
119.13	5103
		63.00
		
119.14	5184
		64.00
		
119.15	5265
		65.00
		
119.16	Effective beginning December 31, 2009
			
119.17	5346
		66.00
		
119.18	5427
		67.00
		
119.19	5508
		68.00
		
119.20	5589
		69.00
		
119.21	5670
		70.00
		
119.22	5751
		71.00
		
119.23	5832
		72.00
		
119.24	5913
		73.00
		
119.25	5994
		74.00
		
119.26	Effective beginning December 31, 2010
			
119.27	6075
		75.00
		
119.28	6156
		76.00
		
119.29	6237
		77.00
		
119.30	6318
		78.00
		
119.31	6399
		79.00
		
119.32	6480
		80.00
		
119.33	6561
		81.00
		
119.34	6642
		82.00
		
119.35	6723
		83.00
		
119.36	Effective beginning December 31, 2011
			
119.37	6804
		84.00
		
119.38	6885
		85.00
		
119.39	6966
		86.00
		
119.40	7047
		87.00
		
119.41	7128
		88.00
		
119.42	7209
		89.00
		
119.43	7290
		90.00
		
120.1	7371
		91.00
		
120.2	7452
		92.00
		
120.3	Effective beginning December 31, 2012
			
120.4	7533
		93.00
		
120.5	7614
		94.00
		
120.6	7695
		95.00
		
120.7	7776
		96.00
		
120.8	7857
		97.00
		
120.9	7938
		98.00
		
120.10	8019
		99.00
		
120.11	8100
		100.00
		
120.12	any amount in excess of 
				
120.13	8100
		100.00
		
120.14 	(d) For a defined benefit relief association in which the governing bylaws provide 
120.15 	for a lump-sum service pension to a retiring member, the maximum lump-sum service 
120.16 	pension amount for each year of service credited that may be provided for in the bylaws is 
120.17 	the greater of the service pension amount provided for in the bylaws on the date of the 
120.18 	calculation of the average amount of the available financing per active covered firefighter 
120.19 	or the maximum service pension figure corresponding to the average amount of available 
120.20 	financing per active covered firefighter for the applicable specified period:

120.21
120.22
120.23	Minimum Average Amount of Available 
Financing per Firefighter
	Maximum Lump-Sum Service 
Pension Amount Payable for 
Each Year of Service
	
120.24	$ ...
		$ 10
		
120.25	11
		20
		
120.26	16
		30
		
120.27	23
		40
		
120.28	27
		50
		
120.29	32
		60
		
120.30	43
		80
		
120.31	54
		100
		
120.32	65
		120
		
120.33	77
		140
		
120.34	86
		160
		
120.35	97
		180
		
120.36	108
		200
		
120.37	131
		240
		
120.38	151
		280
		
120.39	173
		320
		
120.40	194
		360
		
120.41	216
		400
		
120.42	239
		440
		
121.1	259
		480
		
121.2	281
		520
		
121.3	302
		560
		
121.4	324
		600
		
121.5	347
		640
		
121.6	367
		680
		
121.7	389
		720
		
121.8	410
		760
		
121.9	432
		800
		
121.10	486
		900
		
121.11	540
		1000
		
121.12	594
		1100
		
121.13	648
		1200
		
121.14	702
		1300
		
121.15	756
		1400
		
121.16	810
		1500
		
121.17	864
		1600
		
121.18	918
		1700
		
121.19	972
		1800
		
121.20	1026
		1900
		
121.21	1080
		2000
		
121.22	1134
		2100
		
121.23	1188
		2200
		
121.24	1242
		2300
		
121.25	1296
		2400
		
121.26	1350
		2500
		
121.27	1404
		2600
		
121.28	1458
		2700
		
121.29	1512
		2800
		
121.30	1566
		2900
		
121.31	1620
		3000
		
121.32	1672
		3100
		
121.33	1726
		3200
		
121.34	1753
		3250
		
121.35	1780
		3300
		
121.36	1820
		3375
		
121.37	1834
		3400
		
121.38	1888
		3500
		
121.39	1942
		3600
		
121.40	1996
		3700
		
121.41	2023
		3750
		
121.42	2050
		3800
		
121.43	2104
		3900
		
122.1	2158
		4000
		
122.2	2212
		4100
		
122.3	2265
		4200
		
122.4	2319
		4300
		
122.5	2373
		4400
		
122.6	2427
		4500
		
122.7	2481
		4600
		
122.8	2535
		4700
		
122.9	2589
		4800
		
122.10	2643
		4900
		
122.11	2697
		5000
		
122.12	2751
		5100
		
122.13	2805
		5200
		
122.14	2859
		5300
		
122.15	2913
		5400
		
122.16	2967
		5500
		
122.17	3021
		5600
		
122.18	3075
		5700
		
122.19	3129
		5800
		
122.20	3183
		5900
		
122.21	3237
		6000
		
122.22	3291
		6100
		
122.23	3345
		6200
		
122.24	3399
		6300
		
122.25	3453
		6400
		
122.26	3507
		6500
		
122.27	3561
		6600
		
122.28	3615
		6700
		
122.29	3669
		6800
		
122.30	3723
		6900
		
122.31	3777
		7000
		
122.32	3831
		7100
		
122.33	3885
		7200
		
122.34	3939
		7300
		
122.35	3993
		7400
		
122.36	4047
		7500
		
122.37	Effective beginning December 31, 2008
			
122.38	4101
		7600
		
122.39	4155
		7700
		
122.40	4209
		7800
		
122.41	4263
		7900
		
122.42	4317
		8000
		
122.43	4371
		8100
		
123.1	4425
		8200
		
123.2	4479
		8300
		
123.3	Effective beginning December 31, 2009
			
123.4	4533
		8400
		
123.5	4587
		8500
		
123.6	4641
		8600
		
123.7	4695
		8700
		
123.8	4749
		8800
		
123.9	4803
		8900
		
123.10	4857
		9000
		
123.11	4911
		9100
		
123.12	Effective beginning December 31, 2010
			
123.13	4965
		9200
		
123.14	5019
		9300
		
123.15	5073
		9400
		
123.16	5127
		9500
		
123.17	5181
		9600
		
123.18	5235
		9700
		
123.19	5289
		9800
		
123.20	5343
		9900
		
123.21	5397
		10,000
		
123.22	any amount in excess of
				
123.23	5397
		10,000
		
123.24 	(e) For a defined benefit relief association in which the governing bylaws provide 
123.25 	for a monthly benefit service pension as an alternative form of service pension payment 
123.26 	to a lump-sum service pension, the maximum service pension amount for each pension 
123.27 	payment type must be determined using the applicable table contained in this subdivision.
123.28 	(f) If a defined benefit relief association establishes a service pension in compliance 
123.29 	with the applicable maximum contained in paragraph (c) or (d) and the minimum average 
123.30 	amount of available financing per active covered firefighter is subsequently reduced 
123.31 	because of a reduction in fire state aid or because of an increase in the number of active 
123.32 	firefighters, the relief association may continue to provide the prior service pension 
123.33 	amount specified in its bylaws, but may not increase the service pension amount until 
123.34 	the minimum average amount of available financing per firefighter under the table in 
123.35 	paragraph (c) or (d), whichever applies, permits.
123.36 	(g) No defined benefit relief association is authorized to provide a service pension in 
123.37 	an amount greater than the largest applicable flexible service pension maximum amount 
123.38 	even if the amount of available financing per firefighter is greater than the financing 
123.39 	amount associated with the largest applicable flexible service pension maximum.
124.1 	(h) The method of calculating service pensions must be applied uniformly for all 
124.2 	years of active service. Credit must be given for all years of active service except for caps 
124.3 	on service credit if so provided in the bylaws of the relief association.

124.4 	EFFECTIVE DATE. This section is effective the day following final enactment.

124.5 	Sec. 10. Minnesota Statutes 2013 Supplement, section 424A.02, subdivision 7, is 
124.6 	amended to read:
124.7 		Subd. 7.Deferred service pensions. (a) A member of a defined benefit relief 
124.8 	association is entitled to a deferred service pension if the member separates from active 
124.9 	service and membership and has completed the minimum service and membership 
124.10 	requirements in subdivision 1. The requirement that a member separate from active service 
124.11 	and membership is waived for persons who have discontinued their volunteer firefighter 
124.12 	duties and who are employed on a full-time basis under section 424A.015, subdivision 1.
124.13 	(b) The deferred service pension is payable when the former member reaches at 
124.14 	least age 50, or at least the minimum age specified in the bylaws governing the relief 
124.15 	association if that age is greater than age 50, and when the former member makes a valid 
124.16 	written application.
124.17 	(c) A defined benefit relief association that provides a lump-sum service pension 
124.18 	governed by subdivision 3 may, when its governing bylaws so provide, pay interest on the 
124.19 	deferred lump-sum service pension during the period of deferral. If provided for in the 
124.20 	bylaws, interest must be paid in one of the following manners:
124.21 	(1) at the investment performance rate actually earned on that portion of the assets 
124.22 	if the deferred benefit amount is invested by the relief association in a separate account 
124.23 	established and maintained by the relief association;
124.24 	(2) at the investment performance rate actually earned on that portion of the assets 
124.25 	if the deferred benefit amount is invested in a separate investment vehicle held by the 
124.26 	relief association; or
124.27 	(3) at an interest rate of up to five percent, compounded annually, as set by the 
124.28 	board of trustees.
124.29 	(d) Any change in the interest rate set by the board of directorstrustees under 
124.30 	paragraph (c), clause (3), must be ratified by the governing body of the municipality 
124.31 	served by the fire department to which the relief association is directly associated, or by 
124.32 	the independent nonprofit firefighting corporation, as applicable.
124.33 	(e) Interest under paragraph (c), clause (3), is payable beginning on the January 1 
124.34 	next following the date on which the deferred service pension interest rate as set by the 
124.35 	board of trustees was ratified by the governing body of the municipality served by the fire 
125.1 	department to which the relief association is directly associated, or by the independent 
125.2 	nonprofit firefighting corporation, as applicable.
125.3 	(f) Unless the bylaws of a relief association that has elected to pay interest or 
125.4 	additional investment performance on deferred lump-sum service pensions under 
125.5 	paragraph (c) specifies a different interest or additional investment performance method, 
125.6 	including the interest or additional investment performance period starting date and ending 
125.7 	date, the interest or additional investment performance on a deferred service pension 
125.8 	is creditable as follows:
125.9 	(1) for a relief association that has elected to pay interest or additional investment 
125.10 	performance under paragraph (c), clause (1) or (3), beginning on the first day of the 
125.11 	month next following the date on which the member separates from active service and 
125.12 	membership and ending on the last day of the month immediately before the month in 
125.13 	which the deferred member commences receipt of the deferred service pension; or
125.14 	(2) for a relief association that has elected to pay interest or additional investment 
125.15 	performance under paragraph (c), clause (2), beginning on the date that the member 
125.16 	separates from active service and membership and ending on the date that the separate 
125.17 	investment vehicle is valued immediately before the date on which the deferred member 
125.18 	commences receipt of the deferred service pension.
125.19 	(g) For a deferred service pension that is transferred to a separate account established 
125.20 	and maintained by the relief association or separate investment vehicle held by the relief 
125.21 	association, the deferred member bears the full investment risk subsequent to transfer and 
125.22 	in calculating the accrued liability of the volunteer firefighters relief association that pays 
125.23 	a lump-sum service pension, the accrued liability for deferred service pensions is equal 
125.24 	to the separate relief association account balance or the fair market value of the separate 
125.25 	investment vehicle held by the relief association.
125.26 	(h) The deferred service pension is governed by and must be calculated under 
125.27 	the general statute, special law, relief association articles of incorporation, and relief 
125.28 	association bylaw provisions applicable on the date on which the member separated from 
125.29 	active service with the fire department and active membership in the relief association.

125.30 	EFFECTIVE DATE. This section is effective the day following final enactment.

125.31 	Sec. 11. Minnesota Statutes 2012, section 424A.05, subdivision 3, is amended to read:
125.32 		Subd. 3.Authorized disbursements from special fund. Disbursements from the 
125.33 	special fund may not be made for any purpose other than one of the following:
125.34 	(1) for the payment of service pensions to retired members of the relief association if 
125.35 	authorized and paid under law and the bylaws governing the relief association;
126.1 	(2) for the purchase of an annuity for the applicable person under section 424A.015, 
126.2 	subdivision 3, for the transfer of service pension or benefit amounts to the applicable 
126.3 	person's individual retirement account under section 424A.015, subdivision 4, or to the 
126.4 	applicable person's account in the Minnesota deferred compensation plan under section 
126.5 	424A.015, subdivision 5;
126.6 	(3) for the payment of temporary or permanent disability benefits to disabled 
126.7 	members of the relief association if authorized and paid under law and specified in amount 
126.8 	in the bylaws governing the relief association;
126.9 	(4) for the payment of survivor benefits or for the payment of a death benefit to the 
126.10 	estate of the deceased active or deferred firefighter, if authorized and paid under law and 
126.11 	specified in amount in the bylaws governing the relief association;
126.12 	(5) for the payment of the fees, dues and assessments to the Minnesota State Fire 
126.13 	Department Association and to the Minnesota Area ReliefState Fire Chiefs Association 
126.14 	Coalition in order to entitle relief association members to membership in and the benefits 
126.15 	of these associations or organizations;
126.16 	(6) for the payment of insurance premiums to the state Volunteer Firefighters Benefit 
126.17 	Association, or an insurance company licensed by the state of Minnesota offering casualty 
126.18 	insurance, in order to entitle relief association members to membership in and the benefits 
126.19 	of the association or organization; and
126.20 	(7) for the payment of administrative expenses of the relief association as authorized 
126.21 	under section 69.80.

126.22 	EFFECTIVE DATE. This section is effective the day following final enactment.

126.23 	Sec. 12. Minnesota Statutes 2012, section 424A.08, is amended to read:
126.24 	424A.08 MUNICIPALITY WITHOUT RELIEF ASSOCIATION; 
126.25 	AUTHORIZED DISBURSEMENTS.
126.26 	(a) Any qualified municipality which is entitled to receive fire state aid but which 
126.27 	has no volunteer firefighters' relief association directly associated with its fire department 
126.28 	and which has no full-time firefighters with retirement coverage by the public employees 
126.29 	police and fire retirement plan shall deposit the fire state aid in a special account 
126.30 	established for that purpose in the municipal treasury. Disbursement from the special 
126.31 	account may not be made for any purpose except:
126.32 	(1) payment of the fees, dues and assessments to the Minnesota State Fire 
126.33 	Department Association and to the state Volunteer Firefighters' Benefit Association in 
126.34 	order to entitle its firefighters to membership in and the benefits of these state associations;
127.1 	(2) payment of the cost of purchasing and maintaining needed equipment for the 
127.2 	fire department; and
127.3 	(3) payment of the cost of construction, acquisition, repair, or maintenance of 
127.4 	buildings or other premises to house the equipment of the fire department.
127.5 	(b) A qualified municipality which is entitled to receive fire state aid, which has no 
127.6 	volunteer firefighters' relief association directly associated with its fire department, which 
127.7 	does not participate in the voluntary statewide lump-sum volunteer firefighter retirement 
127.8 	plan under chapter 353G, and which has full-time firefighters with retirement coverage 
127.9 	by the public employees police and fire retirement plan may disburse the fire state aid as 
127.10 	provided in paragraph (a), for the payment of the employer contribution requirement with 
127.11 	respect to firefighters covered by the public employees police and fire retirement plan under 
127.12 	section 353.65, subdivision 3, or for a combination of the two types of disbursements.
127.13 	(c) A municipality that has no volunteer firefighters' relief association directly 
127.14 	associated with it and that participates in the voluntary statewide lump-sum volunteer 
127.15 	firefighter retirement plan under chapter 353G shall transmit any fire state aid that it 
127.16 	receives to the voluntary statewide lump-sum volunteer firefighter retirement fund.

127.17 	EFFECTIVE DATE. This section is effective the day following final enactment.

127.18 	Sec. 13. Minnesota Statutes 2013 Supplement, section 424A.092, subdivision 6, 
127.19 	is amended to read:
127.20 		Subd. 6.Municipal ratification for plan amendments. If the special fund of 
127.21 	the relief association does not have a surplus over full funding under subdivision 3, 
127.22 	paragraph (c), clause (5), and if the municipality is required to provide financial support 
127.23 	to the special fund of the relief association under this section, the adoption of or any 
127.24 	amendment to the articles of incorporation or bylaws of a relief association which 
127.25 	increases or otherwise affects the retirement coverage provided by or the service pensions 
127.26 	or retirement benefits payable from the special fund of any relief association to which this 
127.27 	section applies is not effective until it is ratified by the governing body of the municipality 
127.28 	in which the relief association is locatedserved by the fire department to which the 
127.29 	relief association is directly associated or by the independent nonprofit firefighting 
127.30 	corporation, as applicable, and the officers of a relief association shall not seek municipal 
127.31 	ratification prior to preparing and certifying an estimate of the expected increase in the 
127.32 	accrued liability and annual accruing liability of the relief association attributable to the 
127.33 	amendment. If the special fund of the relief association has a surplus over full funding 
127.34 	under subdivision 3, paragraph (c), clause (5), and if the municipality is not required to 
127.35 	provide financial support to the special fund of the relief association under this section, 
128.1 	the relief association may adopt or amend its articles of incorporation or bylaws which 
128.2 	increase or otherwise affect the retirement coverage provided by or the service pensions 
128.3 	or retirement benefits payable from the special fund of the relief association which are 
128.4 	effective without municipal ratification so long as this does not cause the amount of the 
128.5 	resulting increase in the accrued liability of the special fund of the relief association to 
128.6 	exceed 90 percent of the amount of the surplus over full funding reported in the prior year 
128.7 	and this does not result in the financial requirements of the special fund of the relief 
128.8 	association exceeding the expected amount of the future fire state aid to be received by 
128.9 	the relief association as determined by the board of trustees following the preparation 
128.10 	of an estimate of the expected increase in the accrued liability and annual accruing 
128.11 	liability of the relief association attributable to the change. If a relief association adopts or 
128.12 	amends its articles of incorporation or bylaws without municipal ratification under this 
128.13 	subdivision, and, subsequent to the amendment or adoption, the financial requirements 
128.14 	of the special fund of the relief association under this section are such so as to require 
128.15 	financial support from the municipality, the provision which was implemented without 
128.16 	municipal ratification is no longer effective without municipal ratification and any service 
128.17 	pensions or retirement benefits payable after that date may be paid only in accordance with 
128.18 	the articles of incorporation or bylaws as amended or adopted with municipal ratification.

128.19 	EFFECTIVE DATE. This section is effective the day following final enactment.

128.20 	Sec. 14. Minnesota Statutes 2013 Supplement, section 424A.093, subdivision 2, 
128.21 	is amended to read:
128.22 		Subd. 2.Determination of actuarial condition and funding costs. A relief 
128.23 	association to which this section applies shall obtain an actuarial valuation showing the 
128.24 	condition of the special fund of the relief association as of December 31, 1978, and at 
128.25 	least as of December 31 every four years thereafter. The valuation shall be prepared in 
128.26 	accordance with the provisions of sections 356.215, subdivision 8, and 356.216 and any 
128.27 	applicable standards for actuarial work established by the Legislative Commission on 
128.28 	Pensions and Retirement, except that the figure for normal cost shall be expressed as a 
128.29 	level dollar amount, and the amortization contribution shall be the level dollar amount 
128.30 	calculated to amortize any current unfunded accrued liability by at least the date of full 
128.31 	funding specified in subdivision 4, clause (b). Each valuation shall be filed with the 
128.32 	governing body of the municipality in which the relief association is locatedserved by the 
128.33 	fire department to which the relief association is directly associated or by the independent 
128.34 	nonprofit firefighting corporation, as applicable, and with the state auditor, not later than 
128.35 	July 1 of the year next following the date as of which the actuarial valuation is prepared. 
129.1 	Any relief association which is operating under a special law which requires that actuarial 
129.2 	valuations be obtained at least every four years and be prepared in accordance with 
129.3 	applicable actuarial standards set forth in statute may continue to have actuarial valuations 
129.4 	made according to the time schedule set forth in the special legislation subject to the 
129.5 	provisions of subdivision 3.

129.6 	EFFECTIVE DATE. This section is effective the day following final enactment.

129.7 	Sec. 15. Minnesota Statutes 2013 Supplement, section 424A.093, subdivision 6, 
129.8 	is amended to read:
129.9 		Subd. 6.Municipal ratification for plan amendments. If the special fund of the 
129.10 	relief association does not have a surplus over full funding under subdivision 4, and 
129.11 	if the municipality is required to provide financial support to the special fund of the 
129.12 	relief association under this section, the adoption of or any amendment to the articles of 
129.13 	incorporation or bylaws of a relief association which increases or otherwise affects the 
129.14 	retirement coverage provided by or the service pensions or retirement benefits payable 
129.15 	from the special fund of any relief association to which this section applies is not effective 
129.16 	until it is ratified by the governing body of the municipality in which the relief association 
129.17 	is located served by the fire department to which the relief association is directly associated 
129.18 	or by the independent nonprofit firefighting corporation, as applicable. If the special 
129.19 	fund of the relief association has a surplus over full funding under subdivision 4, and if 
129.20 	the municipality is not required to provide financial support to the special fund of the 
129.21 	relief association under this section, the relief association may adopt or amend its articles 
129.22 	of incorporation or bylaws which increase or otherwise affect the retirement coverage 
129.23 	provided by or the service pensions or retirement benefits payable from the special fund 
129.24 	of the relief association which are effective without municipal ratification so long as this 
129.25 	does not cause the amount of the resulting increase in the accrued liability of the special 
129.26 	fund of the relief association to exceed 90 percent of the amount of the surplus over full 
129.27 	funding reported in the prior year and this does not result in the financial requirements of 
129.28 	the special fund of the relief association exceeding the expected amount of the future fire 
129.29 	state aid to be received by the relief association as determined by the board of trustees 
129.30 	following the preparation of an updated actuarial valuation including the proposed change 
129.31 	or an estimate of the expected actuarial impact of the proposed change prepared by the 
129.32 	actuary of the relief association. If a relief association adopts or amends its articles of 
129.33 	incorporation or bylaws without municipal ratification pursuant to this subdivision, and, 
129.34 	subsequent to the amendment or adoption, the financial requirements of the special fund 
129.35 	of the relief association under this section are such so as to require financial support from 
130.1 	the municipality, the provision which was implemented without municipal ratification is 
130.2 	no longer effective without municipal ratification and any service pensions or retirement 
130.3 	benefits payable after that date may be paid only in accordance with the articles of 
130.4 	incorporation or bylaws as amended or adopted with municipal ratification.

130.5 	EFFECTIVE DATE. This section is effective the day following final enactment.

130.6 	Sec. 16. Minnesota Statutes 2013 Supplement, section 424A.094, subdivision 2, 
130.7 	is amended to read:
130.8 		Subd. 2.Determination of actuarial condition and funding costs. Each 
130.9 	independent nonprofit firefighting corporation to which this section applies shall determine 
130.10 	the actuarial condition and the funding costs of the subsidiary relief association using 
130.11 	the following procedure:
130.12 	(1) An independent nonprofit firefighting corporation which has a subsidiary relief 
130.13 	association which pays a monthly benefit service pension shall procure an actuarial 
130.14 	valuation of the special fund of the subsidiary relief association at the same times and 
130.15 	in the same manner as specified in section 424A.093, subdivisions 2 and 3, and an 
130.16 	independent nonprofit firefighting corporation which has a subsidiary relief association 
130.17 	which pays a lump-sum service pension shall determine the accrued liability of the special 
130.18 	fund of the relief association in accordance with section 424A.092, subdivision 2.
130.19 	(2) The financial requirements of the special fund of the subsidiary relief association 
130.20 	which pays a monthly benefit service pension shall be determined in the same manner 
130.21 	as specified in section 424A.093, subdivision 4, and the financial requirements of the 
130.22 	special fund of the subsidiary relief association shall be determined in the same manner as 
130.23 	specified in section 424A.092, subdivision 3.
130.24 	(3) The minimum obligation of the independent nonprofit firefighting corporation on 
130.25 	behalf of the special fund of the subsidiary relief association shall be determined in the 
130.26 	same manner as specified in section 424A.092, subdivision 4, or 424A.093, subdivision 5, 
130.27 	as applicable.
130.28 	(4) The independent nonprofit firefighting corporation shall appropriate annually 
130.29 	from the income of the corporation an amount at least equal to the minimum obligation 
130.30 	of the independent nonprofit firefighting corporation on behalf of the special fund of 
130.31 	the subsidiary relief association.

130.32 	EFFECTIVE DATE. This section is effective the day following final enactment.

131.1 	Sec. 17. Minnesota Statutes 2013 Supplement, section 424A.10, subdivision 2, is 
131.2 	amended to read:
131.3 		Subd. 2.Payment of supplemental benefit. (a) Upon the payment by a volunteer 
131.4 	firefighters' relief association or by the voluntary statewide lump-sum volunteer firefighter 
131.5 	retirement plan of a lump-sum distribution to a qualified recipient, the association must 
131.6 	pay a supplemental benefit to the qualified recipient. Notwithstanding any law to the 
131.7 	contrary, the relief association must pay the supplemental benefit out of its special fund 
131.8 	and the voluntary statewide lump-sum volunteer firefighter retirement plan must pay 
131.9 	the supplemental benefit out of the voluntary statewide lump-sum volunteer firefighter 
131.10 	retirement plan. This benefit is an amount equal to ten percent of the regular lump-sum 
131.11 	distribution that is paid on the basis of the recipient's service as a volunteer firefighter. 
131.12 	In no case may the amount of the supplemental benefit exceed $1,000. A supplemental 
131.13 	benefit under this paragraph may not be paid to a survivor of a deceased active or deferred 
131.14 	volunteer firefighter in that capacity.
131.15 	(b) Upon the payment by a relief association or the retirement plan of a lump-sum 
131.16 	survivor benefit to a survivor of a deceased active volunteer firefighter or of a deceased 
131.17 	deferred volunteer firefighter, the association must pay a supplemental survivor benefit to 
131.18 	the survivor of the deceased active or deferred volunteer firefighter from the special fund 
131.19 	of the relief association and the retirement plan must pay a supplemental survivor benefit 
131.20 	to the survivor of the deceased active or deferred volunteer firefighter from the retirement 
131.21 	fund if chapter 353G so provides. The amount of the supplemental survivor benefit is 20 
131.22 	percent of the survivor benefit, but not to exceed $2,000.
131.23 	(c) For purposes of this section, the term "regular lump-sum distribution" means the 
131.24 	pretax lump-sum distribution excluding any interest that may have been credited during a 
131.25 	volunteer firefighter's period of deferral.
131.26 	(d) An individual may receive a supplemental benefit under paragraph (a) or under 
131.27 	paragraph (b), but not under both paragraphs with respect to one lump-sum volunteer 
131.28 	firefighter benefit.

131.29 	EFFECTIVE DATE. This section is effective the day following final enactment.

131.30 	Sec. 18. Minnesota Statutes 2012, section 424B.12, is amended to read:
131.31 	424B.12 MIXED CONSOLIDATING RELIEF ASSOCIATIONS; BENEFIT 
131.32 	PLAN; FUNDING.
131.33 		Subdivision 1.Applicability. This section applies where one or more of the 
131.34 	volunteer firefighters' relief associations involved in the consolidation are defined benefit 
132.1 	relief associations as defined in section 424A.001, subdivision 1b, and one or more of 
132.2 	the volunteer firefighters' relief associations involved in the consolidation are defined 
132.3 	contribution relief associations as defined in section 424A.001, subdivision 1c.
132.4 		Subd. 2.Benefit plan. The articles of incorporation or bylaws of the successor 
132.5 	relief association must specify whether the relief association is a defined benefit relief 
132.6 	association or whether the relief association is a defined contribution relief association. If 
132.7 	the successor relief association is a defined benefit relief association, the relief association 
132.8 	benefits must comply with sections 424A.02 and 424B.11, subdivision 1a 424B.10. If 
132.9 	the successor relief association is a defined contribution relief association, the relief 
132.10 	association must comply with sections 424A.016 and 424B.12 424B.11, subdivision 2.
132.11 		Subd. 3.Funding. If the successor relief association is a defined benefit relief 
132.12 	association, the relief association funding is governed by section 424B.11 424B.10, 
132.13 	subdivision 2. If the successor relief association is a defined contribution relief association, 
132.14 	the relief association funding is governed by section 424B.12 424B.11, subdivision 3.

132.15 	EFFECTIVE DATE. This section is effective the day following final enactment.

132.16 	ARTICLE 13
132.17 	MISCELLANEOUS RETIREMENT PROVISIONS

132.18 	Section 1. Minnesota Statutes 2012, section 11A.17, subdivision 1, is amended to read:
132.19 		Subdivision 1.Purpose; accounts; continuation. (a) The purpose of the 
132.20 	supplemental investment fund is to provide an investment vehicle for the assets of various 
132.21 	public retirement plans and funds.
132.22 	(b) The fund consists of eight investment accounts: an income share account, a 
132.23 	growth share account, an international share account, a money market account, a fixed 
132.24 	interest account, a bond market account, a common stock index account, and a volunteer 
132.25 	firefighter account. The state board shall determine and make available investment 
132.26 	accounts within the supplemental investment fund. These accounts shall include an 
132.27 	appropriate array of diversified investment options for participants of the public retirement 
132.28 	plans under subdivision 5.
132.29 	(c) The assets of the supplemental investment fund is a continuation of the 
132.30 	supplemental retirement fund in existence on January 1, 1980 must be invested by the 
132.31 	state board in types of investments permitted under section 11A.24.
132.32 	(d) The state board shall make available a volunteer firefighter account for the 
132.33 	voluntary statewide lump-sum volunteer firefighter retirement plan under section 353G.02.

132.34 	EFFECTIVE DATE. This section is effective July 1, 2014.

133.1 	Sec. 2. Minnesota Statutes 2012, section 11A.17, subdivision 9, is amended to read:
133.2 		Subd. 9.Valuation of investment shares. (a) The value of investment shares in 
133.3 	the income share account, the growth share account, the international share account, 
133.4 	the bond market account, and the common stock indexfor each investment account, 
133.5 	excluding a money market account,  must be determined by dividing the total market 
133.6 	value of the securities constituting the respective account by the total number of shares 
133.7 	then outstanding in the investment account.
133.8 	(b) The value of investment shares in thea money market account and the fixed 
133.9 	interest account ismust be $1 a share. Terms as to withdrawal schedules will be agreed 
133.10 	upon by the public retirement fund and the state board.

133.11 	EFFECTIVE DATE. This section is effective July 1, 2014.

133.12 	Sec. 3. Minnesota Statutes 2012, section 352.115, subdivision 8, is amended to read:
133.13 		Subd. 8.Accrual of annuity. State employees shall apply for an annuity. The 
133.14 	application for an annuity must not be made more than 9060 days before the time the state 
133.15 	employee is eligible to retire by reason of both age and service requirements or former 
133.16 	state employee elects to begin collecting a retirement annuity. If the director determines an 
133.17 	applicant for annuity has fulfilled the legal requirements for an annuity, the director shall 
133.18 	authorize the annuity payment in accordance with this chapter and payment must be made 
133.19 	as authorized. An annuity shall begin to accrue no earlier than 180 days before the date the 
133.20 	application is filed with the director, but not before the day following the termination of 
133.21 	state service or before the day the employee is eligible to retire by reason of both age and 
133.22 	service requirements. The retirement annuity shall cease with the last payment which had 
133.23 	accrued during the lifetime of the retired employee unless an optional annuity provided in 
133.24 	section 352.116, subdivision 3, had been selected and had become payable. The joint and 
133.25 	last survivor annuity shall cease with the last payment received by the survivor during 
133.26 	the lifetime of the survivor. If a retired employee had not selected an optional annuity, or 
133.27 	a survivor annuity is not payable under the option, and a spouse survives, the spouse is 
133.28 	entitled only to the annuity for the calendar month in which the retired employee died. 
133.29 	If an optional annuity is payable after the death of the retired employee, the survivor is 
133.30 	entitled to the annuity for the calendar month in which the retired employee died.

133.31 	EFFECTIVE DATE. This section is effective July 1, 2014.

133.32 	Sec. 4. Minnesota Statutes 2012, section 352.115, subdivision 10, is amended to read:
134.1 		Subd. 10.Reemployment of annuitant. (a) Except for salary or wages received 
134.2 	as a temporary employee of the legislature during a legislative session, if any retired 
134.3 	employee again becomes entitled to receive salary or wages from any employer who 
134.4 	employs state employees as that term is defined in section 352.01, subdivision 2, in a 
134.5 	position covered by this chapter, the annuity or retirement allowance must cease whenthe 
134.6 	first of the month following the month that the retired employee has earned an amount 
134.7 	equal to the annual maximum earnings allowable for that age for the continued receipt of 
134.8 	full benefit amounts monthly under the federal old age, survivors, and disability insurance 
134.9 	program as set by the secretary of health and human services under United States Code, 
134.10 	title 42, section 403, in any calendar year. If the retired employee has not yet reached the 
134.11 	minimum age for the receipt of Social Security benefits, the maximum earnings for the 
134.12 	retired employee are equal to the annual maximum earnings allowable for the minimum 
134.13 	age for the receipt of Social Security benefits.
134.14 	(b) The balance of the annual retirement annuity after cessation must be handled or 
134.15 	disposed of as provided in section 356.47.
134.16 	(c) The annuity must be resumed whenthe first of the month following the month 
134.17 	that state service ends, or, if the retired employee is still employed at the beginning of the 
134.18 	next calendar year, at the beginning of that calendar year, and payment must again end 
134.19 	when the retired employee has earned the applicable reemployment earnings maximum 
134.20 	specified in this subdivision. If the retired employee is granted a sick leave without pay, 
134.21 	but not otherwise, the annuity or retirement allowance must be resumed during the period 
134.22 	of sick leave.
134.23 	(d) No payroll deductions for the retirement fund may be made from the earnings of 
134.24 	a reemployed retired employee.
134.25 	(e) No change may be made in the monthly amount of an annuity or retirement 
134.26 	allowance because of the reemployment of an annuitant.
134.27 	(f) If a reemployed annuitant whose annuity is suspended under paragraph (a) 
134.28 	is having insurance premium amounts withheld under section 356.87, subdivision 2, 
134.29 	insurance premium amounts must continue to be withheld and transferred from the 
134.30 	suspended portion of the annuity. The balance of the annual retirement annuity after 
134.31 	cessation, after deduction of the insurance premium amounts, must be treated as specified 
134.32 	in paragraph (b).
134.33 	(g) If a reemployed annuitant whose annuity is suspended under paragraph (a) 
134.34 	has a former spouse receiving a portion of the annuity allowable under section 518.58, 
134.35 	subdivision 1, the portion payable to the former spouse must continue to be paid.

134.36 	EFFECTIVE DATE. This section is effective retroactively from January 1, 2014.

135.1 	Sec. 5. Minnesota Statutes 2012, section 352.965, subdivision 4, is amended to read:
135.2 		Subd. 4.Plan investments. (a)Available investments under the plan may include:
135.3 	 are those investments chosen by the State Board of Investment under section 356.645 for 
135.4 	the plan.
135.5 	(1) shares in the Minnesota supplemental investment fund established in section 
135.6 	11A.17 that are selected to be offered under the plan by the State Board of Investment;
135.7 	(2) saving accounts in federally insured financial institutions;
135.8 	(3) life insurance contracts, fixed annuity, and variable annuity contracts from 
135.9 	companies that are subject to regulation by the commissioner of commerce;
135.10 	(4) investment options from open-end investment companies registered under the 
135.11 	federal Investment Company Act of 1940, United States Code, title 15, sections 80a-1 
135.12 	to 80a-64;
135.13 	(5) investment options from a firm that is a registered investment advisor under the 
135.14 	Investment Advisers Act of 1940, United States Code, title 15, sections 80b-1 to 80b-21;
135.15 	(6) investment options of a bank as defined in United States Code, title 15, section 
135.16 	80b-2, subsection (a), paragraph (2), or a bank holding company as defined in the Bank 
135.17 	Holding Company Act of 1956, United States Code, title 12, section 1841, subsection 
135.18 	(a), paragraph (1); or
135.19 	(7) a combination of clause (1), (2), (3), (4), (5), or (6), as provided by the plan as 
135.20 	specified by the participant.
135.21 	(b) All amounts contributed to the deferred compensation plan and all earnings 
135.22 	on those amounts must be held for the exclusive benefit of the plan participants and 
135.23 	beneficiaries. These amounts must be held in trust, in custodial accounts, or in qualifying 
135.24 	annuity contracts as required by federal law in accordance with section 356A.06, 
135.25 	subdivision 1. This subdivision does not authorize an employer contribution, except as 
135.26 	authorized in section 356.24, subdivision 1, paragraph (a), clause (5). The state, political 
135.27 	subdivision, or other employing unit is not responsible for any loss that may result from 
135.28 	investment of the deferred compensation.

135.29 	EFFECTIVE DATE. This section is effective July 1, 2014.

135.30 	Sec. 6. Minnesota Statutes 2012, section 352.965, is amended by adding a subdivision 
135.31 	to read:
135.32 		Subd. 4a.Exclusive benefit. All amounts contributed to the deferred compensation 
135.33 	plan and all earnings on those amounts must be held for the exclusive benefit of the plan 
135.34 	participants and beneficiaries. These amounts must be held in trust, in custodial accounts, 
136.1 	or in qualifying annuity contracts as required by federal law in accordance with section 
136.2 	356A.06, subdivision 1.

136.3 	EFFECTIVE DATE. This section is effective July 1, 2014.

136.4 	Sec. 7. Minnesota Statutes 2012, section 352.965, is amended by adding a subdivision 
136.5 	to read:
136.6 		Subd. 4b.Employer contribution prohibition. Except as authorized in section 
136.7 	356.24, subdivision 1, clause (5), employer contributions are prohibited.

136.8 	EFFECTIVE DATE. This section is effective July 1, 2014.

136.9 	Sec. 8. Minnesota Statutes 2012, section 352.98, subdivision 2, is amended to read:
136.10 		Subd. 2.Contracting authorized. (a) The executive director shall administer 
136.11 	the plan and contract with public and private entities to provide investment services, 
136.12 	record keeping, benefit payments, and other functions necessary for the administration of 
136.13 	the plan. If allowed by
136.14 	(b) As specified in section 356.645, the Minnesota State Board of Investment, the 
136.15 	Minnesota State Board of Investment supplemental investment funds may be offered as
136.16 	shall determine an appropriate selection of investment options underthat shall be offered 
136.17 	by the health care savings plan or plans.

136.18 	EFFECTIVE DATE. This section is effective July 1, 2014.

136.19 	Sec. 9. Minnesota Statutes 2012, section 352D.04, is amended by adding a subdivision 
136.20 	to read:
136.21 		Subd. 1a.State Board of Investment selection of investment products. As 
136.22 	specified in section 356.645, the State Board of Investment shall select investment 
136.23 	products to be available to participants in the retirement program provided by this chapter.

136.24 	EFFECTIVE DATE. This section is effective July 1, 2014.

136.25 	Sec. 10. Minnesota Statutes 2012, section 352D.04, is amended by adding a 
136.26 	subdivision to read:
136.27 		Subd. 1b.Participant selection of investments. (a) A program participant may 
136.28 	elect to participate in one or more of the investment products made available under the 
136.29 	program by specifying the percentage of the participant's contributions under subdivision 
136.30 	2 to be used to purchase shares in the applicable products.
137.1 	(b) Before making an allocation election, or if the participant fails to specify an 
137.2 	allocation, the executive director shall, on behalf of that participant, purchase shares 
137.3 	in a default investment alternative. The investment alternative must be specified by 
137.4 	the Minnesota State Retirement System Board from the available investment options 
137.5 	authorized under subdivision 1a.
137.6 	(c) A participant may revise the investment allocation for subsequent purchase of 
137.7 	shares, and a participant or former participant may also change the investment options 
137.8 	selected for all or a portion of shares previously purchased.
137.9 	(d) Any investment allocation selection authorized under this subdivision, whether 
137.10 	relating to subsequent purchases of new shares or reallocating the existing portfolio, 
137.11 	must be conducted at times and under procedures prescribed by the executive director. 
137.12 	Any allocation or allocation revisions are effective at the end of the most recent United 
137.13 	States investment market day, unless subject to trading restrictions imposed on certain 
137.14 	investment options.

137.15 	EFFECTIVE DATE. This section is effective July 1, 2014.

137.16 	Sec. 11. Minnesota Statutes 2012, section 353.27, subdivision 4, is amended to read:
137.17 		Subd. 4.Employer reporting requirements; contributions; member status.
 137.18 	(a) A representative authorized by the head of each department shall deduct employee 
137.19 	contributions from the salary of each public employee who qualifies for membership in 
137.20 	the general employees retirement plan of the Public Employees Retirement Association 
137.21 	or in the public employees police and fire retirement plan under this chapter or chapter 
137.22 	353D or 353E at the rate under section 353.27, 353.65, 353D.03, or 353E.03, whichever is 
137.23 	applicable, that is in effect on the date the salary is paid. The employer representative must 
137.24 	also remit payment in a manner prescribed by the executive director for the aggregate 
137.25 	amount of the employee contributions and the required employer contributions to be 
137.26 	received by the association within 14 calendar days after each pay date. If the payment is 
137.27 	less than the amount required, the employer must pay the shortage amount to the association 
137.28 	and collect reimbursement of any employee contribution shortage paid on behalf of a 
137.29 	member through subsequent payroll withholdings from the wages of the employee. 
137.30 	Payment of shortages in employee contributions and associated employer contributions, if 
137.31 	applicable, must include interest at the rate specified in section 353.28, subdivision 5, if not 
137.32 	received within 30 days following the date the amount was initially due under this section.
137.33 	(b) The head of each department or the person's designee shall submit for each 
137.34 	pay period to the association a salary deduction report in the format prescribed by the 
137.35 	executive director. The report must be received by the association within 14 calendar 
138.1 	days after each pay date or the employer may be assessed a fine of $5 per calendar day 
138.2 	until the association receives the required data. Data required as part of salary deduction 
138.3 	reporting must include, but are not limited to:
138.4 	(1) the legal names and Social Security numbers of employees who are members;
138.5 	(2) the amount of each employee's salary deduction;
138.6 	(3) the amount of salary defined in section 353.01, subdivision 10, earned in the pay 
138.7 	period from which each deduction was made, including a breakdown of the portion of the 
138.8 	salary that represents overtime pay that the employee was paid for additional hours worked 
138.9 	beyond the regularly scheduled hours, pay for unused compensatory time, and the salary 
138.10 	amount earned by a reemployed annuitant under section 353.37, subdivision 1, or 353.371, 
138.11 	subdivision 1, or by a disabled member under section 353.33, subdivision 7 or 7a;
138.12 	(4) the beginning and ending dates of the payroll period covered and the date of 
138.13 	actual payment; and
138.14 	(5) adjustments or corrections covering past pay periods as authorized by the 
138.15 	executive director.
138.16 	(c) Employers must furnish the data required for enrollment for each new or 
138.17 	reinstated employee who qualifies for membership in the general employees retirement 
138.18 	plan of the Public Employees Retirement Association or in the public employees police 
138.19 	and fire retirement plan in the format prescribed by the executive director. The required 
138.20 	enrollment data on new members must be submitted to the association prior to or 
138.21 	concurrent with the submission of the initial employee salary deduction. Also, the 
138.22 	employer shall report to the association all member employment status changes, such as 
138.23 	leaves of absence, terminations, and death, and shall report the effective dates of those 
138.24 	changes, on an ongoing basis for the payroll cycle in which they occur. If an employer 
138.25 	fails to comply with the reporting requirements under this paragraph, the executive 
138.26 	director may assess a fine of $25 for each failure if the association staff has notified the 
138.27 	employer of the noncompliance and attempted to obtain the missing data or form from the 
138.28 	employer for a period of more than three months.
138.29 	(d) The employer shall furnish data, forms, and reports as may be required by 
138.30 	the executive director for proper administration of the retirement system. Before 
138.31 	implementing new or different computerized reporting requirements, the executive 
138.32 	director shall give appropriate advance notice to governmental subdivisions to allow time 
138.33 	for system modifications.
138.34 	(e) Notwithstanding paragraph (a), the executive director may provide for less 
138.35 	frequent reporting and payments for small employers.
139.1 	(f) The executive director may establish reporting procedures and methods as 
139.2 	required to review compliance by employers with the salary and contribution reporting 
139.3 	requirements in this chapter. A review of the payroll records of a participating employer 
139.4 	may be conducted by the association on a periodic basis or as a result of concerns known 
139.5 	to exist within a governmental subdivision. An employer under review must extract 
139.6 	requested data and provide records to the association after receiving reasonable advanced 
139.7 	notice. Failure to provide requested information or materials will result in the employer 
139.8 	being liable to the association for any expenses associated with a field audit, which may 
139.9 	include staff salaries, administrative expenses, and travel expenses.

139.10 	EFFECTIVE DATE. This section is effective January 1, 2015.

139.11 	Sec. 12. Minnesota Statutes 2012, section 353.37, is amended by adding a subdivision 
139.12 	to read:
139.13 		Subd. 6.Treatment in certain divorce situations. Notwithstanding other 
139.14 	subdivisions of this section, if a reemployed annuitant whose annuity is suspended or 
139.15 	reduced under this section has a former spouse receiving a portion of the annuity under 
139.16 	section 518.58, subdivision 1, the portion payable to the former spouse must not be 
139.17 	suspended or deferred.

139.18 	EFFECTIVE DATE. This section is effective retroactively from January 1, 2014.

139.19 	Sec. 13. Minnesota Statutes 2012, section 353.371, is amended by adding a subdivision 
139.20 	to read:
139.21 		Subd. 8.Program expiration. (a) Initial postretirement option employment 
139.22 	agreements must not be entered into after June 30, 2019.
139.23 	(b) This section expires on June 30, 2024.

139.24 	EFFECTIVE DATE. This section is effective July 1, 2014.

139.25 	Sec. 14. Minnesota Statutes 2013 Supplement, section 353.651, subdivision 4, is 
139.26 	amended to read:
139.27 		Subd. 4.Early retirement. (a) A person who becomes a public employees police 
139.28 	and fire retirement plan member after June 30, 2007, or a former member who is reinstated 
139.29 	as a member of the plan after that date, who is at least 50 years of age and is at least 
139.30 	partially vested under section 353.01, subdivision 47, upon the termination of public 
139.31 	serviceemployees police and fire retirement plan membership before July 1, 2014, if the 
139.32 	person is other than a county sheriff or after January 4, 2015, if the person is a county 
140.1 	sheriff is entitled upon application to a retirement annuity equal to the normal annuity 
140.2 	calculated under subdivision 3, reduced by two-tenths of one percent for each month that 
140.3 	the member is under age 55 at the time of retirement.
140.4 	(b) Upon the termination of public serviceemployees police and fire retirement 
140.5 	plan membership before July 1, 2014, if the person is other than a county sheriff or 
140.6 	upon the termination of public service before January 5, 2015, if the person is a county 
140.7 	sheriff, any public employees police and fire retirement plan member who first became 
140.8 	a member of the plan before July 1, 2007, and who is not specified in paragraph (a), 
140.9 	upon attaining at least 50 years of age with at least three years of allowable service is 
140.10 	entitled upon application to a retirement annuity equal to the normal annuity calculated 
140.11 	under subdivision 3, reduced by one-tenth of one percent for each month that the member 
140.12 	is under age 55 at the time of retirement.
140.13 	(c) A person other than a county sheriff who is a member of the public employees 
140.14 	police and fire retirement plan on or after July 1, 2014, or a county sheriff who is a 
140.15 	member of the public employees police and fire retirement plan on or after January 5, 
140.16 	2015, and who is at least 50 years old and is at least partially vested under section 353.01, 
140.17 	subdivision 47, and whose benefit effective date is after July 1, 2014, if other than a 
140.18 	county sheriff or after January 4, 2015, if a county sheriff and on or before July 1, 2019, is 
140.19 	entitled upon application to a retirement annuity equal to the normal annuity calculated 
140.20 	under subdivision 3, reduced for each month the member is under age 55 at the time of 
140.21 	retirement by applying a blended monthly rate that is equivalent to the sum of:
140.22 	(1) one-sixtieth of the annual rate of five percent, prorated for each month the 
140.23 	person's benefit effective date is after July 1, 2014, or after December 31, 2014, whichever 
140.24 	applies; and
140.25 	(2) one-sixtieth of the annual rate provided under paragraph (a) or (b), whichever 
140.26 	applies, for each month the person's benefit effective date is before July 1, 2019.
140.27 	(d) A person other than a county sheriff who is a member of the public employees 
140.28 	police and fire retirement plan on or after July 1, 2014, or a county sheriff who is a member 
140.29 	of the public employees police and fire retirement plan on or after January 5, 2015, and 
140.30 	who is at least 50 years old and is at least partially vested under section 353.01, subdivision 
140.31 	47, whose benefit effective date is after July 1, 2019, is entitled, upon application, to a 
140.32 	retirement annuity equal to the normal annuity calculated under subdivision 3, reduced by 
140.33 	five percent annually, prorated for each month that the member is under age 55.

140.34 	EFFECTIVE DATE. This section is effective the day following final enactment.

140.35 	Sec. 15. Minnesota Statutes 2012, section 353D.05, subdivision 1, is amended to read:
141.1 		Subdivision 1.Investment. As further specified under this section, employing unit 
141.2 	contributions, after the deduction of an amount for administrative expenses, and individual 
141.3 	participant contributions must be remitted toinvested in the participant's account or 
141.4 	accounts in investment products authorized by the association that are made available 
141.5 	for this purpose by the State Board of Investment for investment in the Minnesota 
141.6 	supplemental investment fund established byunder section 11A.17 356.645.

141.7 	EFFECTIVE DATE. This section is effective July 1, 2014.

141.8 	Sec. 16. Minnesota Statutes 2012, section 353D.05, is amended by adding a 
141.9 	subdivision to read:
141.10 		Subd. 1a.Participant selection of investments. (a) A plan participant may elect 
141.11 	to allocate contributions, made by and on behalf of the participant, in one or more of the 
141.12 	investment products authorized by the association to be made available under the plan, 
141.13 	by specifying the percentage of the participant's contributions to be used to purchase 
141.14 	shares in the authorized products.
141.15 	(b) If contributions are received before the participant has made an allocation 
141.16 	election, or if the participant fails to specify an allocation, the executive director shall, 
141.17 	on behalf of that participant, purchase shares in a default investment alternative. The 
141.18 	investment option must be specified by the Public Employees Retirement Association board 
141.19 	of trustees from the designated available investment options authorized under this section.
141.20 	(c) A participant may revise the investment allocation for subsequent purchase of 
141.21 	shares, and a participant or former participant may also change the investment options 
141.22 	selected for all or a portion of shares previously purchased.
141.23 	(d) Any investment allocation selection authorized under this subdivision, whether 
141.24 	relating to subsequent purchases of new shares or reallocating the existing portfolio, must 
141.25 	be conducted at times and under procedures prescribed by the executive director.

141.26 	EFFECTIVE DATE. This section is effective July 1, 2014.

141.27 	Sec. 17. Minnesota Statutes 2012, section 354.44, subdivision 5, is amended to read:
141.28 		Subd. 5.Resumption of teaching service after retirement. (a) Any person who 
141.29 	retired under the provisions of this chapter and has thereafter resumed teaching in any 
141.30 	employer unit to which this chapter applies is eligible to continue to receive payments 
141.31 	in accordance with the annuity except that all or a portion of the annuity payments must 
141.32 	be deferred during the calendar year immediately following the fiscal year in which the 
141.33 	person's salary from the teaching service is in an amount greater than $46,000. The 
142.1 	amount of the annuity deferral is one-half of the salary amount in excess of $46,000 and 
142.2 	must be deducted from the annuity payable for the calendar year immediately following 
142.3 	the fiscal year in which the excess amount was earned.
142.4 	(b) If the person is retired for only a fractional part of the fiscal year during the initial 
142.5 	year of retirement, the maximum reemployment salary exempt from triggering a deferral 
142.6 	as specified in this subdivision must be prorated for that fiscal year.
142.7 	(c) After a person has reached the Social Security normal retirement age, no deferral 
142.8 	requirement is applicable regardless of the amount of salary.
142.9 	(d) The amount of the retirement annuity deferral must be handled or disposed 
142.10 	of as provided in section 356.47.
142.11 	(e) For the purpose of this subdivision, salary from teaching service includes all 
142.12 	salary or income earned as a teacher as defined in section 354.05, subdivision 2, paragraph 
142.13 	(a), clause (1). Salary from teaching service also includes, but is not limited to:
142.14 	(1) all income for services performed as a consultant or an, independent contractor 
142.15 	for, or third-party supplier, or as a employee of a consultant, independent contractor, or 
142.16 	third-party supplier, to an employer unit covered by the provisions of this chapter; and
142.17 	(2) the greater of either the income received or an amount based on the rate paid with 
142.18 	respect to an administrative position, consultant, or independent contractor, or third-party 
142.19 	supplier, or as an employee of a consultant, independent contractor, or third-party supplier,
142.20 	 in an employer unit with approximately the same number of pupils and at the same level 
142.21 	as the position occupied by the person who resumes teaching service.
142.22 	(f) Notwithstanding other paragraphs of this subdivision, if the reemployed annuitant 
142.23 	has a former spouse receiving a portion of the annuity under section 518.58, subdivision 1, 
142.24 	the portion payable to the former spouse must not be deferred.

142.25 	EFFECTIVE DATE. This section is effective July 1, 2014.

142.26 	Sec. 18. Minnesota Statutes 2012, section 354.48, subdivision 6a, is amended to read:
142.27 		Subd. 6a.Medical adviser; duties. The state commissioner of health or a 
142.28 	licensed physician on the staff of the Department of Health who is designated by the 
142.29 	commissioner is the medical adviser of The executive director may contract with an 
142.30 	accredited independent organization specializing in disability determinations, licensed 
142.31 	physicians, or physicians on the staff of the commissioner of health as designated by the 
142.32 	commissioner, to be the medical advisor to the executive director. The medical adviser 
142.33 	shall designate licensed physicians, licensed chiropractors, or licensed psychologists with 
142.34 	respect to a mental impairment, who shall examine applicants for disability benefits. The 
142.35 	medical adviser shall pass upon all expert reports based on any examinations performed 
143.1 	in order to determine whether a teacher is totally and permanently disabled as defined in 
143.2 	section 354.05, subdivision 14. The medical adviser shall also investigate all health and 
143.3 	medical statements and certificates by or on behalf of a teacher in connection with a 
143.4 	disability benefit, and shall report in writing to the director setting forth any conclusions 
143.5 	and recommendations on all matters referred to the medical adviser.

143.6 	EFFECTIVE DATE. This section is effective July 1, 2014.

143.7 	Sec. 19. Minnesota Statutes 2013 Supplement, section 356.415, subdivision 1c, 
143.8 	is amended to read:
143.9 		Subd. 1c.Annual postretirement adjustments; PERA-police and fire. (a) 
143.10 	Retirement annuity, disability benefit, or survivor benefit recipients of the public 
143.11 	employees police and fire retirement plan are entitled to a postretirement adjustment 
143.12 	annually on January 1, until funding stability is restored, as follows:
143.13 	(1) for each annuitant or benefit recipient whose annuity or benefit effective date is 
143.14 	on or before June 1, 2014, who has been receiving the annuity or benefit for at least 12 
143.15 	full months as of the immediate preceding June 30, an amount equal to one percent in 
143.16 	each year; or
143.17 	(2) for each annuitant or benefit recipient whose annuity or benefit effective date is 
143.18 	on or before June 1, 2014, who has been receiving the annuity or benefit for at least one 
143.19 	full month, but not less than 11 months, as of the immediate preceding June 30, an amount 
143.20 	equal to 1/12 of one percent for each month of annuity or benefit receipt; and
143.21 	(3) for each annuitant or benefit recipient whose annuity or benefit effective date is 
143.22 	after June 1, 2014, unless section 27 applies, who will have been receiving an annuity 
143.23 	or benefit for at least 36 full months as of the immediate preceding June 30, an amount 
143.24 	equal to one percent; or
143.25 	(4) for each annuitant or benefit recipient whose annuity or benefit effective date is 
143.26 	after June 1, 2014, unless section 27 applies, who has been receiving the annuity or benefit 
143.27 	for at least 25 full months, but less than 36 months as of the immediate preceding June 30, 
143.28 	an amount equal to 1/12 of one percent for each full month of annuity or benefit receipt 
143.29 	during the fiscal year in which the annuity or benefit was effective.
143.30 	(b) Retirement annuity, disability benefit, or survivor benefit recipients of the public 
143.31 	employees police and fire retirement plan are entitled to a postretirement adjustment 
143.32 	annually on each January 1 following the restoration of funding stability as defined under 
143.33 	paragraph (c) and during the continuation of funding stability as defined under paragraph 
143.34 	(c), as follows:
144.1 	(1) for each annuitant or benefit recipient who has been receiving the annuity or 
144.2 	benefit for at least 36 full months as of the immediate preceding June 30, an amount 
144.3 	equal to the percentage increase in the Consumer Price Index for urban wage earners and 
144.4 	clerical workers all items index published by the Bureau of Labor Statistics of the United 
144.5 	States Department of Labor between the immediate preceding June 30 and the June 30 
144.6 	occurring 12 months previous, but not to exceed 2.5 percent; and
144.7 	(2) for each annuitant or benefit recipient who has been receiving the annuity 
144.8 	or benefit for at least 25 full months, but less than 36 full months, as of the immediate 
144.9 	preceding June 30, an amount equal to 1/12 of the percentage increase in the Consumer 
144.10 	Price Index for urban wage earners and clerical workers all items index published by 
144.11 	the Bureau of Labor Statistics of the United States Department of Labor between the 
144.12 	immediate preceding June 30 and the June 30 occurring 12 months previous for each full 
144.13 	month of annuity or benefit receipt during the fiscal year in which the annuity or benefit 
144.14 	was effective, but not to exceed 1/12 of 2.5 percent for each full month of annuity or 
144.15 	benefit receipt during the fiscal year in which the annuity or benefit was effective.
144.16 	(c) Funding stability is restored when the market value of assets of the public 
144.17 	employees police and fire retirement plan equals or exceeds 90 percent of the actuarial 
144.18 	accrued liabilities of the applicable plan in the two most recent consecutive actuarial 
144.19 	valuations prepared under section 356.215 and under the standards for actuarial work of 
144.20 	the Legislative Commission on Pensions and Retirement by the approved actuary retained 
144.21 	by the Public Employees Retirement Association under section 356.214.
144.22 	(d) After having met the definition of funding stability under paragraph (c), a full 
144.23 	or prorated increase, as provided in paragraph (a), clause (1), (2), (3), or (4), whichever 
144.24 	applies, rather than adjustments under paragraph (b), is again applied in a subsequent year 
144.25 	or years if the market value of assets of the public employees police and fire retirement 
144.26 	plan equals or is less than:
144.27 	(1) 85 percent of the actuarial accrued liabilities of the applicable plan for two 
144.28 	consecutive actuarial valuations; or
144.29 	(2) 80 percent of the actuarial accrued liabilities of the applicable plan for the most 
144.30 	recent actuarial valuation.
144.31 	(e) An increase in annuity or benefit payments under this section must be made 
144.32 	automatically unless written notice is filed by the annuitant or benefit recipient with the 
144.33 	executive director of the Public Employees Retirement Association requesting that the 
144.34 	increase not be made.

144.35 	EFFECTIVE DATE. This section is effective the day following final enactment 
144.36 	and the amendments to this section expire on February 2, 2015.

145.1 	Sec. 20. Minnesota Statutes 2012, section 356.635, subdivision 6, is amended to read:
145.2 		Subd. 6.Eligible retirement plan. (a) An "eligible retirement plan" is:
145.3 	(1) an individual retirement account under section 408(a) or 408A of the federal 
145.4 	Internal Revenue Code;
145.5 	(2) an individual retirement annuity plan under section 408(b) of the federal Internal 
145.6 	Revenue Code;
145.7 	(3) an annuity plan under section 403(a) of the federal Internal Revenue Code;
145.8 	(4) a qualified trust plan under section 401(a) of the federal Internal Revenue Code 
145.9 	that accepts the distributee's eligible rollover distribution;
145.10 	(5) an annuity contract under section 403(b) of the federal Internal Revenue Code;
145.11 	(6) an eligible deferred compensation plan under section 457(b) of the federal 
145.12 	Internal Revenue Code, which is maintained by a state or local government and which 
145.13 	agrees to separately account for the amounts transferred into the plan; or
145.14 	(7) in the case of an eligible rollover distribution to a nonspousal beneficiary, an 
145.15 	individual account or annuity treated as an inherited individual retirement account under 
145.16 	section 402(c)(11) of the federal Internal Revenue Code.
145.17 	(b) For distributions of after-tax contributions which are not includable in gross 
145.18 	income, the after-tax portion may be transferred only to an individual retirement account 
145.19 	or annuity described in section 408(a) or (b) of the federal Internal Revenue Code, to a 
145.20 	Roth individual retirement account described in section 408A of the federal Internal 
145.21 	Revenue Code, or to a qualified plan described in either section 401(a) of the federal 
145.22 	Internal Revenue Code or 403(a) to an annuity contract described in section 403(b) of 
145.23 	the federal Internal Revenue Code, that agrees to separately account for the amounts 
145.24 	transferred, including separately accounting for the portion of the distribution which is 
145.25 	includable in gross income and the portion of the distribution which is not includable.

145.26 	EFFECTIVE DATE. This section is effective the day following final enactment.

145.27 	Sec. 21. [356.645] INVESTMENT OF VARIOUS DEFINED CONTRIBUTION 
145.28 	PLAN ASSETS.
145.29 	The State Board of Investment shall determine the investments to be made available 
145.30 	to plan participants in plans defined in sections 352.965 and 352.98 and chapters 352D 
145.31 	and 353D. Investments made available to plan participants must include at least one 
145.32 	or more of the following:
145.33 	(1) shares in the Minnesota supplemental investment fund established in section 
145.34 	11A.17;
145.35 	(2) saving accounts in federally insured financial institutions;
146.1 	(3) life insurance contracts, fixed annuity contracts, and variable annuity contracts 
146.2 	from companies that are subject to regulation by the commissioner of commerce;
146.3 	(4) investment options from open-end investment companies registered under the 
146.4 	federal Investment Company Act of 1940, United States Code, title 15, sections 80a-1 
146.5 	to 80a-64;
146.6 	(5) investment options from a firm that is a registered investment adviser under 
146.7 	the Investment Advisers Act of 1940, United States Code, title 15, sections 80b-1 to 
146.8 	80b-21; and
146.9 	(6) investment options of a bank as defined in United States Code, title 15, section 
146.10 	80b-2, subsection (a), paragraph (2), or a bank holding company as defined in the Bank 
146.11 	Holding Company Act of 1956, United States Code, title 12, section 1841, subsection 
146.12 	(a), paragraph (1).

146.13 	EFFECTIVE DATE. This section is effective July 1, 2014.

146.14 	Sec. 22. [356.646] PLAN PARTICIPANT INVESTMENT RESPONSIBILITY.
146.15 		Subdivision 1.Member investment responsibility. The state, State Board of 
146.16 	Investment and its executive director and staff, plan administrators and their staff, and 
146.17 	participating public employers are not liable and are not responsible for any investment 
146.18 	losses due to choices made by participants or due to qualified default investment 
146.19 	alternatives.
146.20 		Subd. 2.Application. This section applies to the:
146.21 	(1) Minnesota state deferred compensation plan, established under section 352.965;
146.22 	(2) health care savings plan, established under section 352.98;
146.23 	(3) unclassified employees retirement program, established under chapter 352D;
146.24 	(4) public employees defined contribution plan, established under chapter 353D;
146.25 	(5) individual retirement account plan, established under chapter 354B;
146.26 	(6) higher education supplemental retirement plan, established under chapter 354C; 
146.27 	and
146.28 	(7) Arts Board and Humanities Commission individual retirement account plan, 
146.29 	established under chapter 354D.

146.30 	EFFECTIVE DATE. This section is effective July 1, 2014.

146.31 	Sec. 23. Minnesota Statutes 2013 Supplement, section 356.91, is amended to read:
146.32 	356.91 VOLUNTARY MEMBERSHIP DUES DEDUCTION.
147.1 	(a) Upon written authorization of a person receiving an annuity from a public pension 
147.2 	fund administered by the Minnesota State Retirement System or, the Public Employees 
147.3 	Retirement Association, or the Teachers Retirement Association, the executive director of 
147.4 	the public pension fund shall deduct from the retirement annuity an amount requested by 
147.5 	the annuitant to be paid as membership dues or other payments to any labor organization 
147.6 	that is an exclusive bargaining agent representing public employees or an organization 
147.7 	representing retired public employees of which the annuitant is a member and shall, on a 
147.8 	monthly basis, pay the amount to the organization so designated by the annuitant.
147.9 	(b) A pension fund and the plan fiduciaries which authorize or administer deductions 
147.10 	of dues payments under paragraph (a) are not liable for failure to properly deduct or transmit 
147.11 	the dues amounts, provided that the fund and the fiduciaries have acted in good faith.
147.12 	(c) Any labor organization that is an exclusive bargaining agent representing public 
147.13 	employees or an organization representing retired public employees may conduct blind 
147.14 	mailings to the annuitants of a retirement system specified in paragraph (a) by requesting 
147.15 	that the retirement system mail voluntary membership information and dues deduction 
147.16 	cards to annuitants. Such mailings shall not be for the purpose of supporting or opposing 
147.17 	any candidate, political party, or ballot measure. The organization requesting the blind 
147.18 	mailing shall pay all costs associated with these mailings, including but not limited to 
147.19 	copying, labeling, mailing, postage, and record keeping. In lieu of administering a blind 
147.20 	mailing in-house, a retirement system may transmit annuitant data necessary for conducting 
147.21 	a blind mailing to a mail center pursuant to a secure data share agreement with the mail 
147.22 	center which provides that neither the organization nor any other entity shall have direct 
147.23 	access to the data transmitted by the retirement system. The retirement system shall have 
147.24 	no obligation to approve or disapprove, or otherwise be responsible for, the content of the 
147.25 	mailings. No organization shall conduct more than two blind mailings per calendar year.

147.26 	EFFECTIVE DATE. This section is effective July 2, 2015.

147.27 	Sec. 24. Minnesota Statutes 2013 Supplement, section 363A.36, subdivision 1, is 
147.28 	amended to read:
147.29 		Subdivision 1.Scope of application. (a) For all contracts for goods and services in 
147.30 	excess of $100,000, no department or agency of the state shall accept any bid or proposal 
147.31 	for a contract or agreement from any business having more than 40 full-time employees 
147.32 	within this state on a single working day during the previous 12 months, unless the 
147.33 	commissioner is in receipt of the business' affirmative action plan for the employment of 
147.34 	minority persons, women, and qualified disabled individuals. No department or agency of 
147.35 	the state shall execute any such contract or agreement until the affirmative action plan 
148.1 	has been approved by the commissioner. Receipt of a certificate of compliance issued by 
148.2 	the commissioner shall signify that a firm or business has an affirmative action plan that 
148.3 	has been approved by the commissioner. A certificate shall be valid for a period of four 
148.4 	years. A municipality as defined in section 466.01, subdivision 1, that receives state 
148.5 	money for any reason is encouraged to prepare and implement an affirmative action plan 
148.6 	for the employment of minority persons, women, and the qualified disabled and submit the 
148.7 	plan to the commissioner.
148.8 	(b) This paragraph applies to a contract for goods or services in excess of $100,000 
148.9 	to be entered into between a department or agency of the state and a business that is 
148.10 	not subject to paragraph (a), but that has more than 40 full-time employees on a single 
148.11 	working day during the previous 12 months in the state where the business has its primary 
148.12 	place of business. A department or agency of the state may not execute a contract or 
148.13 	agreement with a business covered by this paragraph unless the business has a certificate 
148.14 	of compliance issued by the commissioner under paragraph (a) or the business certifies 
148.15 	that it is in compliance with federal affirmative action requirements.
148.16 	(c) This section does not apply to contracts entered into by the State Board of 
148.17 	Investment for investment options under section 352.965, subdivision 4 356.645.
148.18 	(d) The commissioner shall issue a certificate of compliance or notice of denial 
148.19 	within 15 days of the application submitted by the business or firm.

148.20 	EFFECTIVE DATE. This section is effective July 1, 2014.

148.21 	Sec. 25. Laws 2009, chapter 169, article 5, section 2, the effective date, as amended by 
148.22 	Laws 2010, chapter 359, article 5, section 27, is amended to read:

148.23 	EFFECTIVE DATE. This section is effective the day following final enactment 
148.24 	and expires on June 30, 2014. Individuals must not be appointed to a postretirement 
148.25 	option position after that date.

148.26 	EFFECTIVE DATE. This section is effective the day following final enactment.

148.27 	Sec. 26. COUNTY SHERIFF TEMPORARY EARLY RETIREMENT 
148.28 	PROVISION.
 148.29 		Subdivision 1.Application. (a) This section applies to a county sheriff who:
148.30 	(1) terminates membership in the public employees police and fire retirement plan 
148.31 	after June 30, 2014, and by the final day in office in January 2015 as reported by the county;
148.32 	(2) is at least age 50 but less than age 55 on the date of termination;
149.1 	(3) is at least partially vested under Minnesota Statutes, section 353.01, subdivision 
149.2 	47, and meets all applicable requirements for receipt of an early retirement annuity from 
149.3 	the plan; and
149.4 	(4) has as the benefit effective date the day following termination of public 
149.5 	employees police and fire retirement plan membership.
149.6 	(b) Notwithstanding any provision of Minnesota Statutes, section 353.651, 
149.7 	subdivision 4, to the contrary, the early retirement annuity applicable to an eligible person 
149.8 	under paragraph (a) is the applicable benefit specified in subdivision 2.
149.9 		Subd. 2.Early retirement annuity. (a) If an eligible person became a public 
149.10 	employees police and fire retirement plan member after June 30, 2007, or was a former 
149.11 	member who was reinstated as a member after that date, the person is entitled, upon 
149.12 	application, to the normal annuity calculated under Minnesota Statutes, section 353.651, 
149.13 	subdivision 3, reduced by two-tenths of one percent for each month that the member 
149.14 	is under age 55 at the time of retirement.
149.15 	(b) If an eligible person became a public employees police and fire retirement plan 
149.16 	member before July 1, 2007, and is covered under paragraph (a), the person is entitled, 
149.17 	upon application, to the normal annuity calculated under Minnesota Statutes, section 
149.18 	353.651, subdivision 3, reduced by one-tenth of one percent for each month that the 
149.19 	member is under age 55 at the time of retirement.
149.20 	(c) If an eligible person is not fully vested, the annuity computed under this section 
149.21 	must be reduced accordingly.
149.22 		Subd. 3.Expiration. This section expires January 1, 2016.

149.23 	EFFECTIVE DATE. This section is effective the day following final enactment.

149.24 	Sec. 27. COUNTY SHERIFF TEMPORARY PROVISION; APPLICATION OF 
149.25 	POSTRETIREMENT ADJUSTMENT WAITING PERIOD.
 149.26 		Subdivision 1.Application. Notwithstanding any provision of Minnesota Statutes, 
149.27 	section 356.415, subdivision 1c, paragraph (a), to the contrary, this section applies to a 
149.28 	county sheriff who:
149.29 	(1) terminates membership in the public employees police and fire retirement plan 
149.30 	after June 30, 2014, and by the final day in office in January 2015 as reported by the county;
149.31 	(2) is at least age 50 on the date of membership termination;
149.32 	(3) is at least partially vested under Minnesota Statutes, section 353.01, subdivision 
149.33 	47, and meets all applicable requirements for receipt of a retirement annuity from the 
149.34 	public employees police and fire retirement plan; and
150.1 	(4) has as the effective date for the commencement of the retirement annuity the day 
150.2 	following the date on which termination of public employees police and fire retirement 
150.3 	plan membership occurs.
150.4 		Subd. 2.Waiting period for initial postretirement adjustment eligibility. A 
150.5 	person to whom subdivision 1 applies is eligible to receive the initial postretirement 
150.6 	adjustment under Minnesota Statutes, section 356.415, subdivision 1c, paragraph (a), 
150.7 	clause (1) or (2), whichever applies, rather than under Minnesota Statutes, section 
150.8 	356.415, subdivision 1c, paragraph (a), clause (3) or (4).
150.9 		Subd. 3.Expiration. This section expires February 2, 2015.

150.10 	EFFECTIVE DATE. This section is effective the day following final enactment.

150.11 	Sec. 28.  REPEALER.
 150.12 	Minnesota Statutes 2012, sections 11A.17, subdivision 4; 352.965, subdivision 5; 
150.13 	352D.04, subdivision 1; and 353D.05, subdivision 2, are repealed.

150.14 	EFFECTIVE DATE. This section is effective July 1, 2014.

150.15 	ARTICLE 14
150.16 	ONE PERSON AND SMALL GROUP RETIREMENT PROVISIONS

150.17 	Section 1. PERA-POLICE AND FIRE; DISABILITY BENEFIT APPLICATION 
150.18 	DEADLINE EXTENSION FOR CERTAIN WADENA COUNTY SHERIFF'S 
150.19 	DEPUTIES.
 150.20 	(a) Notwithstanding any provision of Minnesota Statutes, section 353.031 or 
150.21 	353.656, to the contrary, an eligible person described in paragraph (b) is authorized to 
150.22 	file an application for a disability benefit from the public employees police and fire 
150.23 	retirement plan retroactively from the date of a shooting event in which the person was 
150.24 	involved on March 11, 2006.
150.25 	(b) An eligible person is a person who:
150.26 	(1) was born on August 11, 1971;
150.27 	(2) was initially employed as a deputy sheriff by Wadena County on March 9, 2006;
150.28 	(3) was, by virtue of law enforcement employment, a member of the public 
150.29 	employees police and fire retirement plan;
150.30 	(4) was involved in the nonfatal shooting incident of a gun-wielding suspect near 
150.31 	Sebelia, Minnesota, on March 11, 2006, without being physically injured;
150.32 	(5) resigned from the Wadena County sheriff's department in October 2010 after 
150.33 	being treated for mental health issues for the prior six months; and
151.1 	(6) failed to apply for a mental health-related disability benefit by the November 11, 
151.2 	2007, deadline for applying for a disability benefit from the public employees police and 
151.3 	fire retirement plan based on the March 11, 2006, shooting incident.
151.4 	(c) If the eligible person files a disability benefit application under paragraph (a) 
151.5 	on or before the expiration date specified in paragraph (d), and if the eligible person is 
151.6 	determined by the Public Employees Retirement Association as being disabled while in 
151.7 	the line of duty as a result of the March 11, 2006, shooting incident, the eligible person 
151.8 	is entitled to receive a duty disability benefit from the public employees police and fire 
151.9 	retirement plan under Minnesota Statutes, section 353.656, subdivision 1 or 1a, including 
151.10 	retroactive benefit payments from April 1, 2006.
151.11 	(d) The authority for the eligible person to file a disability benefit application under 
151.12 	paragraph (a) expires on July 1, 2015.

151.13 	EFFECTIVE DATE. This section is effective the day following final enactment.

151.14 	Sec. 2. PERMITTING THE PURCHASE OF SALARY CREDIT BY CERTAIN 
151.15 	CURRENT AND FORMER CITY OF DULUTH OR DULUTH AIRPORT 
151.16 	AUTHORITY EMPLOYEES COVERED BY THE GENERAL EMPLOYEES 
151.17 	RETIREMENT PLAN OR THE PUBLIC EMPLOYEES POLICE AND FIRE 
151.18 	RETIREMENT PLAN.
 151.19 		Subdivision 1.Authorization. Due to a Court of Appeals determination that certain 
151.20 	salary-supplement payments, provided to certain city of Duluth and Duluth Airport 
151.21 	Authority employees and deposited in the employee's deferred compensation account, 
151.22 	should have been considered salary for pension purposes, an eligible person is authorized 
151.23 	to receive the treatment specified in this section if the eligible person chooses to make the 
151.24 	employee contribution equivalent payment specified in this section.
151.25 		Subd. 2.Eligible person. (a) An eligible person:
151.26 	(1) is a current or former employee of the city of Duluth or the Duluth Airport 
151.27 	Authority, employed by that governmental subdivision between August 1, 2007, and 
151.28 	December 31, 2011;
151.29 	(2) was a participating member of the general employees retirement plan of the 
151.30 	Public Employees Retirement Association or the public employees police and fire 
151.31 	retirement plan for that employment; and
151.32 	(3) had employer-paid amounts made to the person's deferred compensation account 
151.33 	for which contributions were not made to the applicable Public Employees Retirement 
151.34 	Association plan fund between August 1, 2007, and December 31, 2011, or the date of 
151.35 	the employee's termination of public service under Minnesota Statutes, section 353.01, 
152.1 	subdivision 11a, whichever is earlier, due to an erroneous application of law under which 
152.2 	the Public Employees Retirement Association executive director and board concluded 
152.3 	that these employer-paid amounts were not salary for pension purposes under Minnesota 
152.4 	Statutes, section 353.01, subdivision 10.
152.5 	(b) A surviving spouse, as defined in this paragraph, is an eligible person for 
152.6 	purposes of this section. A surviving spouse means:
152.7 	(1) the surviving spouse of an eligible person as defined in paragraph (a) who, at 
152.8 	the time of the eligible person's death, was a deferred annuitant of a Public Employees 
152.9 	Retirement Association plan specified in this section;
152.10 	(2) the surviving spouse of an eligible person as defined in paragraph (a) receiving 
152.11 	benefits under a joint and survivor annuity from a Public Employees Retirement 
152.12 	Association plan specified in this section; or
152.13 	(3) the surviving spouse of an eligible person as defined in paragraph (a) receiving a 
152.14 	survivor benefit under Minnesota Statutes, section 353.657.
152.15 		Subd. 3.Employee contributions. An eligible person may make payment of an 
152.16 	employee contribution equivalent amount to the fund of the general employees retirement 
152.17 	plan of the Public Employees Retirement Association or the public employees police 
152.18 	and fire retirement plan, whichever provided the coverage. The employee contribution 
152.19 	equivalent amount is the amount of employee contributions that would have been made 
152.20 	by the employee based on the employer-paid amounts made to the person's deferred 
152.21 	compensation account for the period specified in subdivision 2, and the employee 
152.22 	contribution rates to the applicable Public Employees Retirement Association plan during 
152.23 	that period. If an employee contribution equivalent amount is paid, it must be made in 
152.24 	full and in a lump sum.
152.25 		Subd. 4.Employer contributions. (a) If an eligible person makes the employee 
152.26 	equivalent contribution under subdivision 3, the city of Duluth or the Duluth Airport 
152.27 	Authority, whichever is the applicable employing unit, may make the corresponding 
152.28 	employer contributions, plus any employer supplemental and employer additional 
152.29 	contributions required by law during the applicable time period.
152.30 	(b) Any contributions specified under this subdivision must be based on the 
152.31 	employer-paid amounts referred to in subdivision 2, and the contribution rates applicable 
152.32 	during the time period for regular employer contributions, and any employer supplemental 
152.33 	and employer additional contributions, if applicable.
152.34 	(c) Within 30 days of receipt by the executive director of the Public Employees 
152.35 	Retirement Association of employee equivalent contributions under subdivision 3, 
152.36 	the executive director shall notify the city of Duluth or the Duluth Airport Authority, 
153.1 	whichever is the applicable employer, of amounts due under this subdivision. If the 
153.2 	employer chooses to make the payment specified in this subdivision, payment shall be 
153.3 	remitted by the applicable employer to the executive director for deposit in the applicable 
153.4 	fund within 30 days of notification. If payment is not made in full within that time period, 
153.5 	the executive director shall collect the necessary amounts by applying Minnesota Statutes, 
153.6 	section 353.28, subdivision 6.
153.7 		Subd. 5.Benefit adjustments. Upon receipt of the applicable employee equivalent 
153.8 	contribution under subdivision 3 from an eligible person, the executive director shall 
153.9 	revise the records of the Public Employees Retirement Association and grant the person 
153.10 	the additional salary credit. If a retirement, disability, or survivor annuity has commenced, 
153.11 	the executive director must adjust the benefit being paid to include in the calculation the 
153.12 	additional salary on which contributions were paid, and the adjusted benefit must be paid 
153.13 	retroactive from the effective date of the initial benefit payment under the annuity.
153.14 		Subd. 6.Restrictions. This section does not apply if service credit and other rights 
153.15 	under the plan were forfeited by taking a refund.
153.16 		Subd. 7.Treatment of interest. Notwithstanding any provision in Minnesota 
153.17 	Statutes, chapter 353, to the contrary, all payments specified in this section made by an 
153.18 	eligible person to the executive director for deposit in the applicable Public Employees 
153.19 	Retirement Association fund are to be made without interest. Any payments required from 
153.20 	the employer under this section are also without interest, provided the employer makes 
153.21 	the payment to the executive director within 30 days of notification. Interest shall be 
153.22 	charged, as specified in Minnesota Statutes, section 353.28, on any employer obligations 
153.23 	not paid within the 30-day period.
153.24 		Subd. 8.Notification; counseling. The executive director shall notify all active 
153.25 	members, deferred members, retirees, and survivors to whom this section may apply and 
153.26 	shall provide counseling regarding the implications of this section, including payment 
153.27 	requirements and likely adjustments in current or future benefit amounts if employee 
153.28 	equivalent contributions as specified in this section are made.
153.29 		Subd. 9.Expiration of salary credit purchase authority. Payment of employee 
153.30 	contribution equivalent amounts, as authorized under this section, is prohibited after 
153.31 	October 31, 2014. 
153.32 		Subd. 10.Ratification. Actions taken before the effective date of this section by 
153.33 	the executive director and board of the Public Employees Retirement Association, the 
153.34 	city of Duluth, the Duluth Airport Authority, and eligible persons which are otherwise 
153.35 	consistent with this section are ratified.

153.36 	EFFECTIVE DATE. This section is effective the day following final enactment.

154.1 	Sec. 3. PERA-GENERAL; HENNEPIN COUNTY ELECTED SERVICE 
154.2 	CREDIT PURCHASE.
 154.3 	(a) Notwithstanding any provision of Minnesota Statutes, chapters 353 and 353D, 
154.4 	or other law to the contrary, an eligible person described in paragraph (b) is entitled to 
154.5 	purchase allowable service credit from the coordinated program of the general employees 
154.6 	retirement plan of the Public Employees Retirement Association for the period of service 
154.7 	as an elected county commissioner for Hennepin County that is not otherwise covered 
154.8 	under Minnesota Statutes, chapter 353, if the eligible person makes the payment required 
154.9 	under paragraph (d).
154.10 	(b) An eligible person is a person who:
154.11 	(1) was born on November 18, 1946; and
154.12 	(2) was first elected as a Hennepin County commissioner in November 1978 and 
154.13 	was sworn in as a commissioner on January 2, 1979.
154.14 	(c) If the eligible person described in paragraph (b) elects to participate in the general 
154.15 	employees retirement plan of the Public Employees Retirement Association governed by 
154.16 	Minnesota Statutes, chapter 353, effective on the first day of the month next following the 
154.17 	effective date of this section, the eligible person may apply to the executive director of 
154.18 	the Public Employees Retirement Association to make the service credit purchase under 
154.19 	this section. The application must be in writing and must be accompanied with necessary 
154.20 	documentation of the applicability of this section and of any other relevant information 
154.21 	that the executive director may require.
154.22 	(d) Allowable service credit under Minnesota Statutes, section 353.01, subdivision 
154.23 	16, must be granted by the coordinated program of the general employees retirement plan 
154.24 	of the Public Employees Retirement Association to the eligible person upon the receipt 
154.25 	of the prior service credit purchase payment amount required under Minnesota Statutes, 
154.26 	section 356.551. The payment obligation must be offset first by a transfer of the account 
154.27 	balance to the credit of the eligible person from the defined contribution plan of the Public 
154.28 	Employees Retirement Association. If that transfer is insufficient, the balance of the 
154.29 	service credit purchase payment may be made from amounts to the credit of the eligible 
154.30 	person under Minnesota Statutes, section 352.965 or 383B.46.
154.31 	(e) If, before July 1, 2018, the interest rate actuarial assumption, the mortality 
154.32 	actuarial assumption, or both actuarial assumptions of the general employees retirement 
154.33 	plan of the Public Employees Retirement Association are modified and the net result of 
154.34 	any modification is to increase the actuarial accrued liability of the retirement plan, the 
154.35 	eligible person, as a condition of a continued receipt of an annuity from the retirement 
154.36 	plan, shall reimburse the retirement fund for the amount of the increase in required 
155.1 	reserves for the annuity, determined as the difference between the present value of the 
155.2 	annuity on the effective date of the assumption change or changes before the assumption 
155.3 	change or changes and after the assumption change or changes. The executive director 
155.4 	shall certify the amount due, if any, to the eligible person and payment is due 30 days later.
155.5 	(f) Authority for an eligible person to make the prior service credit purchase 
155.6 	under this section expires on December 31, 2015, or upon the termination of service as 
155.7 	a Hennepin County commissioner, whichever is earlier.

155.8 	EFFECTIVE DATE. This section is effective the day following final enactment.

155.9 	Sec. 4. PERA-P&F; MILLE LACS BAND PRIOR SERVICE CREDIT 
155.10 	PURCHASE AUTHORIZED.
 155.11 	(a) An eligible person described in paragraph (b) is entitled to purchase allowable 
155.12 	service credit in the public employees police and fire retirement plan for the period 
155.13 	specified in paragraph (c) by remitting the payment calculated under paragraph (d).
155.14 	(b) An eligible person is a person who:
155.15 	(1) was born on June 28, 1966;
155.16 	(2) was initially employed as a full-time police officer by the Mille Lacs tribal 
155.17 	police department on October 29, 1998;
155.18 	(3) was initially employed as a part-time police officer by the city of Onamia on 
155.19 	July 28, 2002;
155.20 	(4) was initially employed as a part-time police officer by the city of Pierz on March 
155.21 	14, 2013; and
155.22 	(5) is an active member of the public employees police and fire retirement plan.
155.23 	(c) The period of Mille Lacs tribal police department employment available for 
155.24 	purchase is the two-year period of Mille Lacs tribal police department employment 
155.25 	immediately preceding initial active membership in the public employees police and fire 
155.26 	retirement plan in that capacity.
155.27 	(d) The full actuarial value prior service credit purchase payment amount must be 
155.28 	calculated under Minnesota Statutes, section 356.551.
155.29 	(e) The eligible person must provide the executive director of the Public Employees 
155.30 	Retirement Association with any relevant requested information pertaining to the service 
155.31 	credit purchase.
155.32 	(f) Authority to make a service credit purchase under this section expires on June 30, 
155.33 	2015, or upon the eligible person's termination from public employment as defined under 
155.34 	Minnesota Statutes, section 353.01, subdivision 11a, whichever occurs earlier.

156.1 	EFFECTIVE DATE. This section is effective the day following final enactment.

156.2 	Sec. 5. TEACHERS RETIREMENT ASSOCIATION; PROSPECTIVE 
156.3 	TEACHERS RETIREMENT ASSOCIATION COVERAGE; PURCHASE OF 
156.4 	PAST SERVICE CREDIT.
 156.5 	(a) An eligible person described in paragraph (b) is authorized to become a 
156.6 	coordinated member of the Teachers Retirement Association and to purchase service 
156.7 	and salary credit in the Teachers Retirement Association coordinated plan retroactively 
156.8 	from January 1, 1995, upon making an election under paragraph (c) and upon making all 
156.9 	required payments under paragraphs (d) and (e).
156.10 	(b) An eligible person is a person who:
156.11 	(1) was born on October 29, 1957;
156.12 	(2) has been employed at Mesabi Range Community and Technical College as 
156.13 	an instructor since 1993;
156.14 	(3) in 1994 was classified in the unlimited part-time category;
156.15 	(4) became eligible for and was covered by the higher education individual 
156.16 	retirement account plan in January 1994; and 
156.17 	(5) was not offered an election of Teachers Retirement Association coverage, as 
156.18 	required under Laws 1994, chapter 508, article 1, section 10.
156.19 	(c) To be eligible for coverage by the Teachers Retirement Association, an eligible 
156.20 	person must submit a written application to the executive director of the Teachers 
156.21 	Retirement Association on a form provided by the Teachers Retirement Association. The 
156.22 	application must include all documentation of the applicability of this section and any 
156.23 	other relevant information that the executive director may require. Teachers Retirement 
156.24 	Association plan membership commences as of September 1, 2014, for an applicable 
156.25 	eligible person, and past salary and service credit is granted from January 1, 1995, 
156.26 	as specified in this section, following receipt by the executive director of the written 
156.27 	application specified in this paragraph and receipt of the payments specified in paragraphs 
156.28 	(d) and (e). The authority granted by this section is voided if the applicable eligible 
156.29 	individual terminates from Minnesota State Colleges and Universities system employment 
156.30 	prior to receipt by the executive director of the Teachers Retirement Association of the 
156.31 	application specified in this paragraph and amounts specified in paragraphs (d) and (e). 
156.32 	Coverage by the Teachers Retirement Association is in lieu of coverage by the individual 
156.33 	retirement account plan.
156.34 	(d) If an eligible person makes an election under paragraph (c), the eligible person 
156.35 	shall make, before September 1, 2014, a contribution equal to the excess, if any, of the 
157.1 	employee contributions that the individual would have made if the Teachers Retirement 
157.2 	Association had provided coverage from January 1, 1995, rather than the individual 
157.3 	retirement account plan. These additional contribution amounts shall include 8.5 percent 
157.4 	annual compound interest computed from the date the contribution would have been made 
157.5 	if deducted from salary until paid. The total amount to be paid under this paragraph shall 
157.6 	be determined by the executive director of the Teachers Retirement Association and 
157.7 	written notification of the amount required under this paragraph should be transmitted 
157.8 	to the eligible individual.
157.9 	(e) If payment is made under paragraph (d), the value of the applicable eligible 
157.10 	person's higher education individual retirement account plan account shall be determined 
157.11 	as of September 1, 2014, and that account value shall be transferred to the Teachers 
157.12 	Retirement Association on or before September 15, 2014.
157.13 	(f) The Teachers Retirement Association shall determine the full actuarial value 
157.14 	imposed upon the Teachers Retirement Association under this section due to the salary 
157.15 	and service credit purchase.
157.16 	(g) From the total amount computed under paragraph (f), the executive director of the 
157.17 	Teachers Retirement Association shall subtract the amounts received under paragraphs (d) 
157.18 	and (e). The Minnesota State Colleges and Universities system is authorized to transmit the 
157.19 	remaining amount, if any, to the executive director of the Teachers Retirement Association.
157.20 	(h) Any payment amount specified from the Minnesota State Colleges and 
157.21 	Universities system under paragraph (g) shall be transmitted to the Teachers Retirement 
157.22 	Association within one month following receipt of amounts transmitted under paragraphs 
157.23 	(d) and (e), and following notification from the executive director of the Teachers 
157.24 	Retirement Association. If a payment from the Minnesota State Colleges and Universities 
157.25 	system specified under paragraph (g) is not made, the executive director of the Teachers 
157.26 	Retirement Association must notify the commissioner of Minnesota Management and 
157.27 	Budget of this fact and that commissioner must order that amounts specified under 
157.28 	paragraph (g) shall be deducted from appropriations or state aid to the Minnesota 
157.29 	State Colleges and Universities system and be transmitted to the Teachers Retirement 
157.30 	Association.

157.31 	EFFECTIVE DATE. This section is effective the day following final enactment.