1.1 	A bill for an act
1.2 	relating to retirement; modifying actuarial assumptions; modifying postretirement 
1.3 	adjustment triggers; modifying contribution stabilizers; amending police and 
1.4 	firefighter retirement state supplemental aid; creating a monthly benefit division 
1.5 	of the statewide volunteer firefighter retirement plan; adopting recommendations 
1.6 	of the volunteer firefighter relief association working group; modifying local 
1.7 	firefighter relief associations; making small group retirement changes; making 
1.8 	administrative changes to the Minnesota State Retirement System, Teachers 
1.9 	Retirement Association, and Public Employees Retirement Association; making 
1.10 	technical and conforming changes; merging the Minneapolis Employees 
1.11 	Retirement Fund Division into PERA-General; requiring a state financial 
1.12 	contribution to fund the merger; permanently extending supplemental fire state 
1.13 	aid to volunteer firefighter relief associations;amending Minnesota Statutes 
1.14 	2014, sections 3A.03, subdivision 2; 11A.17, subdivision 2; 69.051, subdivision 
1.15 	1a; 69.80; 256D.21; 352.01, subdivisions 2a, 11, 13a, 15; 352.017, subdivision 
1.16 	2; 352.021, subdivisions 1, 3, 4; 352.029, subdivision 2; 352.04, subdivisions 
1.17 	8, 9; 352.045; 352.22, subdivisions 8, 10; 352.23; 352.27; 352.75, subdivision 
1.18 	2; 352.87, subdivision 8; 352.91, subdivision 3e; 352.955, subdivision 3; 
1.19 	352B.011, subdivision 3; 352B.013, subdivision 2; 352B.07; 352B.085; 
1.20 	352B.086; 352B.10, subdivision 5; 352B.105; 352B.11, subdivision 4; 352B.25; 
1.21 	352D.02, subdivision 1; 352D.05, subdivision 4; 352D.11, subdivision 2; 
1.22 	352D.12; 353.01, subdivisions 2a, 2b, 6, 10, 11a, 16, 17, 28, 36, 48; 353.0161, 
1.23 	subdivision 2, by adding a subdivision; 353.0162; 353.017, subdivision 2; 
1.24 	353.03, subdivision 3; 353.031, subdivisions 5, 10; 353.05; 353.06; 353.27, 
1.25 	subdivisions 1, 3b, 7a, 10, 12, 12a, by adding a subdivision; 353.28, subdivision 
1.26 	5; 353.29, subdivision 7; 353.33, subdivisions 6, 13; 353.34, subdivision 1; 
1.27 	353.35, subdivision 1; 353.37, subdivision 1; 353.46, subdivisions 2, 6; 353.50, 
1.28 	subdivision 6; 353.505; 353.64, subdivisions 7a, 8, 9, 10; 353.656, subdivisions 
1.29 	1a, 1b, 2, 4, 5a; 353D.03, subdivision 3; 353D.071, subdivision 2; 353E.06, 
1.30 	subdivisions 5, 6; 353F.01; 353F.02, subdivisions 3, 5a; 353F.04, subdivision 
1.31 	2; 353F.051, subdivisions 1, 2, 3; 353G.01, subdivisions 6, 7, 11, 12, by adding 
1.32 	subdivisions; 353G.02; 353G.03; 353G.04; 353G.05; 353G.06; 353G.07; 
1.33 	353G.08; 353G.09; 353G.10; 353G.11; 353G.115; 353G.12, subdivision 2, 
1.34 	by adding a subdivision; 353G.13; 353G.14; 353G.15; 353G.16; 354.05, 
1.35 	subdivisions 10, 13, 25; 354.07, subdivision 5; 354.092, subdivision 4; 354.42, 
1.36 	subdivisions 1a, 4b, 4d; 354.44, subdivisions 8, 9; 354.445; 354.45, subdivision 
1.37 	1a; 354.48, subdivision 3; 354.51, subdivisions 1, 5; 354.52, subdivision 
1.38 	4c; 354.55, subdivision 10; 354.72, subdivision 2; 354A.011, subdivision 6; 
1.39 	354A.092; 354A.093, subdivision 6; 354A.096; 354A.108; 354A.12, subdivision 
2.1 	3c; 354A.29, subdivisions 7, 8, 9; 354A.31, subdivision 7; 354A.38, subdivision 
2.2 	3; 355.01, subdivision 3j; 355.07; 356.195, subdivision 2; 356.214, subdivision 
2.3 	1; 356.215, subdivisions 1, 8, 11, 18; 356.245; 356.30, subdivision 3; 356.302, 
2.4 	subdivision 7; 356.303, subdivision 4; 356.32, subdivisions 1, 2; 356.40; 
2.5 	356.401, subdivision 3; 356.407, subdivisions 1, 2; 356.415, subdivisions 1, 1a, 
2.6 	1c, 1d, 1e, 1f, 2; 356.431; 356.44; 356.461, subdivision 2; 356.465, subdivision 
2.7 	3; 356.50, subdivision 2; 356.551, subdivision 2; 356.62; 356.635, subdivision 
2.8 	9, by adding a subdivision; 356B.10, subdivisions 2, 3, 4, 5, 6, 7; 423A.02, 
2.9 	subdivision 1b; 423A.022, subdivision 5; 424A.001, subdivision 10, by adding 
2.10 	a subdivision; 424A.002, subdivision 1; 424A.016, subdivision 4; 424A.02, 
2.11 	subdivisions 3, 3a, 9a; 424A.05, subdivisions 2, 3; 424A.092, subdivisions 3, 
2.12 	6; 424A.093, subdivisions 5, 6; 480.181, subdivision 2; 490.121, subdivision 4; 
2.13 	490.1211; 490.124, subdivision 12; proposing coding for new law in Minnesota 
2.14 	Statutes, chapter 353G; repealing Minnesota Statutes 2014, sections 352.271; 
2.15 	352.75, subdivisions 1, 3, 4, 5, 6; 352.76; 352.91, subdivisions 3a, 3b; 352B.29; 
2.16 	353.01, subdivision 49; 353.025; 353.27, subdivision 1a; 353.50, subdivisions 1, 
2.17 	2, 3, 4, 5, 7, 8, 9, 10; 353.83; 353.84; 353.85; 353D.03, subdivision 4; 354.146, 
2.18 	subdivisions 1, 3; 354.33, subdivisions 5, 6; 354.39; 354.55, subdivisions 13, 
2.19 	16, 19; 354.58; 354.71; 354A.35, subdivision 2a; 354A.42; 356.405; 356.49, 
2.20 	subdivision 2; 424A.03, subdivision 3.
2.21 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

2.22 	ARTICLE 1
2.23 	INTEREST, SALARY, AND PAYROLL GROWTH ASSUMPTION CHANGES

2.24 	Section 1. Minnesota Statutes 2014, section 356.215, subdivision 8, is amended to read:
2.25 		Subd. 8.Interest and salary assumptions. (a) The actuarial valuation must use the 
2.26 	applicable following interest assumption:
2.27 	(1) select and ultimate interest rate assumption

2.28
2.29	plan
	ultimate interest 
rate assumption
		
2.30	general state employees retirement plan
	8.5%
		
2.31	correctional state employees retirement plan
	8.5
		
2.32	State Patrol retirement plan
	8.5
		
2.33
2.34
2.35	legislators retirement plan, and for the 
constitutional officers calculation of total plan 
liabilities 
	0 
		
2.36	judges retirement plan
	8.5
		
2.37	general public employees retirement plan
	8.5
		
2.38	public employees police and fire retirement plan
	8.5
		
2.39
2.40	local government correctional service 
retirement plan
	8.5
		
2.41	teachers retirement plan
	8.5%
		
2.42	St. Paul teachers retirement plan
	8.5
		
2.43 	Except for the legislators retirement plan and the constitutional officers calculation 
2.44 	of total plan liabilities, The select preretirement interest rate assumption for the period 
2.45 	after June 30, 2012, through June 30, 2017, is 8 percent.
3.1 	(2) single rate interest rate assumption

3.2
3.3	plan
	interest rate 
assumption
		
3.4	general state employees retirement plan
	8%
		
3.5	correctional state employees retirement plan
	8
		
3.6	State Patrol retirement plan
	8
		
3.7
3.8
3.9	legislators retirement plan, and for the 
constitutional officers calculation of total plan 
liabilities
	0
		
3.10	judges retirement plan
	8
		
3.11	general public employees retirement plan
	8
		
3.12	public employees police and fire retirement plan
	8
		
3.13
3.14	local government correctional service retirement 
plan
	8
		
3.15	St. Paul teachers retirement plan
	8
		
3.16	Bloomington Fire Department Relief Association
	6
		
3.17
3.18	local monthly benefit volunteer firefighters relief 
associations
	5
		
3.19 	(b)(1) If funding stability has been attained, the valuation must use a postretirement 
3.20 	adjustment rate actuarial assumption equal to the postretirement adjustment rate specified 
3.21 	in section 354A.27, subdivision 7; 354A.29, subdivision 9; or 356.415, subdivision 1, 
3.22 	whichever applies.
3.23 	(2) If funding stability has not been attained, the valuation must use a select 
3.24 	postretirement adjustment rate actuarial assumption equal to the postretirement adjustment 
3.25 	rate specified in section 354A.27, subdivision 6a; 354A.29, subdivision 8; or 356.415, 
3.26 	subdivision 1a, 1b, 1c, 1d, 1e, or 1f, whichever applies, for a period ending when the 
3.27 	approved actuary estimates that the plan will attain the defined funding stability measure, 
3.28 	and thereafter an ultimate postretirement adjustment rate actuarial assumption equal 
3.29 	to the postretirement adjustment rate under section 354A.27, subdivision 7; 354A.29, 
3.30 	subdivision 9; or 356.415, subdivision 1, for the applicable period or periods beginning 
3.31 	when funding stability is projected to be attained.
3.32 	(c) The actuarial valuation must use the applicable following single rate future salary 
3.33 	increase assumption, the applicable following modified single rate future salary increase 
3.34 	assumption, or the applicable following graded rate future salary increase assumption:
3.35 	(1) single rate future salary increase assumption

3.36	plan
	future salary increase assumption
	
3.37	legislators retirement plan
		5%
	
3.38	judges retirement plan
		3 2.75
	
3.39
3.40	Bloomington Fire Department Relief 
Association
		4
	
4.1 	(2) age-related future salary increase age-related select and ultimate future salary 
4.2 	increase assumption or graded rate future salary increase assumption

4.3	plan
	future salary increase assumption
	
4.4	local government correctional service retirement plan
	assumption B
	
4.5	St. Paul teachers retirement plan
	assumption A
	
4.6 	For plans other than the St. Paul teachers 
4.7 	retirement plan and the local government 
4.8 	correctional service retirement plan, the 
4.9 	select calculation is: during the designated 
4.10 	select period, a designated percentage rate 
4.11 	is multiplied by the result of the designated 
4.12 	integer minus T, where T is the number of 
4.13 	completed years of service, and is added 
4.14 	to the applicable future salary increase 
4.15 	assumption. The designated select period 
4.16 	is ten years and the designated integer is 
4.17 	ten for the local government correctional 
4.18 	service retirement plan and 15 for the St. 
4.19 	Paul Teachers Retirement Fund Association. 
4.20 	The designated percentage rate is 0.2 percent 
4.21 	for the St. Paul Teachers Retirement Fund 
4.22 	Association.
4.23 	The ultimate future salary increase assumption is:

4.24	age
	A
	B
		
4.25	16
	5.9%
	9% 8.75%
		
4.26	17
	5.9
	9 8.75
		
4.27	18
	5.9
	9 8.75
		
4.28	19
	5.9
	9 8.75
		
4.29	20
	5.9
	9 8.75
		
4.30	21
	5.9
	8.75 8.5
		
4.31	22
	5.9
	8.5 8.25
		
4.32	23
	5.85
	8.25 8
		
4.33	24
	5.8
	8 7.75
		
4.34	25
	5.75
	7.75 7.5
		
4.35	26
	5.7
	7.5 7.25
		
4.36	27
	5.65
	7.25 7
		
4.37	28
	5.6
	7 6.75
		
4.38	29
	5.55
	6.75 6.5
		
5.1	30
	5.5
	6.75 6.5
		
5.2	31
	5.45
	6.5 6.25
		
5.3	32
	5.4
	6.5 6.25
		
5.4	33
	5.35
	6.5 6.25
		
5.5	34
	5.3
	6.25 6
		
5.6	35
	5.25
	6.25 6
		
5.7	36
	5.2
	6 5.75
		
5.8	37
	5.15
	6 5.75
		
5.9	38
	5.1
	6 5.75
		
5.10	39
	5.05
	5.75 5.5
		
5.11	40
	5
	5.75 5.5
		
5.12	41
	4.95
	5.75 5.5
		
5.13	42
	4.9
	5.5 5.25
		
5.14	43
	4.85
	5.25 5
		
5.15	44
	4.8
	5.25 5
		
5.16	45
	4.75
	5 4.75
		
5.17	46
	4.7
	5 4.75
		
5.18	47
	4.65
	5 4.75
		
5.19	48
	4.6
	5 4.75
		
5.20	49
	4.55
	5 4.75
		
5.21	50
	4.5
	5 4.75
		
5.22	51
	4.45
	5 4.75
		
5.23	52
	4.4
	5 4.75
		
5.24	53
	4.35
	5 4.75
		
5.25	54
	4.3
	5 4.75
		
5.26	55
	4.25
	4.75 4.5
		
5.27	56
	4.2
	4.75 4.5
		
5.28	57
	4.15
	4.5 4.25
		
5.29	58
	4.1
	4.25 4
		
5.30	59
	4.05
	4.25 4
		
5.31	60
	4
	4.25 4
		
5.32	61
	4
	4.25 4
		
5.33	62
	4
	4.25 4
		
5.34	63
	4
	4.25 4
		
5.35	64
	4
	4.25 4
		
5.36	65
	4
	4 3.75
		
5.37	66
	4
	4 3.75
		
5.38	67
	4
	4 3.75
		
5.39	68
	4
	4 3.75
		
5.40	69
	4
	4 3.75
		
5.41	70
	4
	4 3.75
		
5.42 	(3) service-related ultimate future salary increase assumption

6.1
6.2	general state employees retirement plan of the 
Minnesota State Retirement System
	assumption A
	
6.3
6.4	general employees retirement plan of the Public 
Employees Retirement Association
	assumption B
	
6.5	Teachers Retirement Association
	assumption C
	
6.6	public employees police and fire retirement plan
	assumption D
	
6.7	State Patrol retirement plan
	assumption E
	
6.8
6.9	correctional state employees retirement plan of the 
Minnesota State Retirement System
	assumption F

6.10
6.11	service 
length
	A
	B
	C
	D
	E
	F
	
6.12
6.13	1
	10.5%
10.25%
	12.03%
11.78%
	12%
	13%
12.75%
	8%
7.75%
	6%
5.75%
	
6.14
6.15	2
	8.1
7.85
	8.9
8.65
	9
	11
10.75
	7.5
7.25
	5.85
5.6
	
6.16
6.17	3
	6.9
6.65
	7.46
7.21
	8
	9
8.75
	7
6.75
	5.7
5.45
	
6.18
6.19	4
	6.2
5.95
	6.58
6.33
	7.5
	8
7.75
	6.75
6.5
	5.55
5.3
	
6.20
6.21	5
	5.7
5.45
	5.97
5.72
	7.25
	6.5
6.25
	6.5
6.25
	5.4
5.15
	
6.22
6.23	6
	5.3
5.05
	5.52
5.27
	7
	6.1
5.85
	6.25
6
	5.25
5
	
6.24
6.25	7
	5
4.75
	5.16
4.91
	6.85
	5.8
5.55
	6
5.75
	5.1
4.85
	
6.26
6.27	8
	4.7
4.45
	4.87
4.62
	6.7
	5.6
5.35
	5.85
5.6
	4.95
4.7
	
6.28
6.29	9
	4.5
4.25
	4.63
4.38
	6.55
	5.4
5.15
	5.7
5.45
	4.8
4.55
	
6.30
6.31	10
	4.4
4.15
	4.42
4.17
	6.4
	5.3
5.05
	5.55
5.3
	4.65
4.4
	
6.32
6.33	11
	4.2
3.95
	4.24
3.99
	6.25
	5.2
4.95
	5.4
5.15
	4.55
4.3
	
6.34
6.35	12
	4.1
3.85
	4.08
3.83
	6
	5.1
4.85
	5.25
5
	4.45
4.2
	
6.36
6.37	13
	4
3.75
	3.94
3.69
	5.75
	5
4.75
	5.1
4.85
	4.35
4.1
	
6.38
6.39	14
	3.8
3.55
	3.82
3.57
	5.5
	4.9
4.65
	4.95
4.7
	4.25
4
	
6.40
6.41	15
	3.7
3.45
	3.7
3.45
	5.25
	4.8
4.55
	4.8
4.55
	4.15
3.9
	
6.42
6.43	16
	3.6
3.35
	3.6
3.35
	5
	4.8
4.55
	4.65
4.4
	4.05
3.8
	
6.44
6.45	17
	3.5
3.25
	3.51
3.26
	4.75
	4.8
4.55
	4.5
4.25
	3.95
3.7
	
6.46
6.47	18
	3.5
3.25
	3.5
3.25
	4.5
	4.8
4.55
	4.35
4.1
	3.85
3.6
	
7.1
7.2	19
	3.5
3.25
	3.5
3.25
	4.25
	4.8
4.55
	4.2
3.95
	3.75
3.5
	
7.3
7.4	20
	3.5
3.25
	3.5
3.25
	4
	4.8
4.55
	4.05
3.8
	3.75
3.5
	
7.5
7.6	21
	3.5
3.25
	3.5
3.25
	3.9
	4.7
4.45
	4
3.75
	3.75
3.5
	
7.7
7.8	22
	3.5
3.25
	3.5
3.25
	3.8
	4.6
4.35
	4
3.75
	3.75
3.5
	
7.97.10
	23
	3.5
3.25
	3.5
3.25
	3.7
	4.5
4.25
	4
3.75
	3.75
3.5
	
7.11
7.12	24
	3.5
3.25
	3.5
3.25
	3.6
	4.5
4.25
	4
3.75
	3.75
3.5
	
7.13
7.14	25
	3.5
3.25
	3.5
3.25
	3.5
	4.5
4.25
	4
3.75
	3.75
3.5
	
7.15
7.16	26
	3.5
3.25
	3.5
3.25
	3.5
	4.5
4.25
	4
3.75
	3.75
3.5
	
7.17
7.18	27
	3.5
3.25
	3.5
3.25
	3.5
	4.5
4.25
	4
3.75
	3.75
3.5
	
7.19
7.20	28
	3.5
3.25
	3.5
3.25
	3.5
	4.5
4.25
	4
3.75
	3.75
3.5
	
7.21
7.22	29
	3.5
3.25
	3.5
3.25
	3.5
	4.5
4.25
	4
3.75
	3.75
3.5
	
7.23
7.24	30 or more
	3.5
3.25
	3.5
3.25
	3.5
	4.5
4.25
	4
3.75
	3.75
3.5
	
7.25 	(d) The actuarial valuation must use the applicable following payroll growth 
7.26 	assumption for calculating the amortization requirement for the unfunded actuarial 
7.27 	accrued liability where the amortization retirement is calculated as a level percentage 
7.28 	of an increasing payroll:

7.29	plan
	payroll growth assumption
	
7.30
7.31	general state employees retirement plan of the 
Minnesota State Retirement System
	3.75% 3.5%
	
7.32	correctional state employees retirement plan
	3.75 3.5
	
7.33	State Patrol retirement plan
	3.75 3.5
	
7.34	judges retirement plan
	3 2.75
	
7.35
7.36	general employees retirement plan of the Public 
Employees Retirement Association
	3.75 3.5
	
7.37	public employees police and fire retirement plan
	3.75 3.5
	
7.38	local government correctional service retirement plan
	3.75 3.5
	
7.39	teachers retirement plan
	3.75
	
7.40	St. Paul teachers retirement plan
	4
	
7.41 	(e) The assumptions set forth in paragraphs (c) and (d) continue to apply, unless a 
7.42 	different salary assumption or a different payroll increase assumption:
7.43 	(1) has been proposed by the governing board of the applicable retirement plan;
8.1 	(2) is accompanied by the concurring recommendation of the actuary retained under 
8.2 	section 356.214, subdivision 1, if applicable, or by the approved actuary preparing the 
8.3 	most recent actuarial valuation report if section 356.214 does not apply; and
8.4 	(3) has been approved or deemed approved under subdivision 18.

8.5 	EFFECTIVE DATE. This section is effective June 30, 2015, and applies to 
8.6 	actuarial valuations prepared for an actuarial valuation date after that date.

8.7 	ARTICLE 2
8.8 	CONFORMING CHANGES IN REFUND REPAYMENT PROVISIONS 
8.9 	RELATED TO INTEREST ASSUMPTION CHANGE

8.10 	Section 1. Minnesota Statutes 2014, section 3A.03, subdivision 2, is amended to read:
8.11 		Subd. 2.Refund.  (a) A former member who has made contributions under 
8.12 	subdivision 1 and who is no longer a member of the legislature is entitled to receive, upon 
8.13 	written application to the executive director on a form prescribed by the executive director, 
8.14 	a refund from the general fund of all contributions credited to the member's account with 
8.15 	interest computed as provided in section 352.22, subdivision 2.
8.16 	(b) The refund of contributions as provided in paragraph (a) terminates all rights of a 
8.17 	former member of the legislature and the survivors of the former member under this chapter.
8.18 	(c) If the former member of the legislature again becomes a member of the legislature 
8.19 	after having taken a refund as provided in paragraph (a), the member is a member of the 
8.20 	unclassified employees retirement program of the Minnesota State Retirement System.
8.21 	(d) However, the member may reinstate the rights and credit for service previously 
8.22 	forfeited under this chapter if the member repays all refunds taken, plus interest at an 
8.23 	annualthe rate of 8.5 percent until June 30, 2015, and eight percent thereafter compounded 
8.24 	annually from the date on which the refund was taken to the date on which the refund 
8.25 	is repaid.
8.26 	(e) No person may be required to apply for or to accept a refund.

8.27 	Sec. 2. Minnesota Statutes 2014, section 352.01, subdivision 13a, is amended to read:
8.28 		Subd. 13a.Reduced salary during period of workers' compensation. An 
8.29 	employee on leave of absence receiving temporary workers' compensation payments and a 
8.30 	reduced salary or no salary from the employer who is entitled to allowable service credit 
8.31 	for the period of absence, may make payment to the fund for the difference between salary 
8.32 	received, if any, and the salary the employee would normally receive if not on leave of 
8.33 	absence during the period. The employee shall pay an amount equal to the employee and 
9.1 	employer contribution rate under section 352.04, subdivisions 2 and 3, on the differential 
9.2 	salary amount for the period of the leave of absence.
9.3 	The employing department, at its option, may pay the employer amount on behalf 
9.4 	of its employees. Payment made under this subdivision must include interest at the rate 
9.5 	of 8.5 percent until June 30, 2015, and eight percent thereafter  per year, and must be 
9.6 	completed within one year of the return from leave of absence.

9.7 	Sec. 3. Minnesota Statutes 2014, section 352.04, subdivision 8, is amended to read:
9.8 		Subd. 8.Department required to pay omitted salary deductions. (a) If a 
9.9 	department fails to take deductions past due for a period of 60 days or less from an 
9.10 	employee's salary as provided in this section, those deductions must be taken on later 
9.11 	payroll abstracts.
9.12 	(b) If a department fails to take deductions past due for a period in excess of 60 
9.13 	days from an employee's salary as provided in this section, the department, and not the 
9.14 	employee, must pay on later payroll abstracts the employee and employer contributions 
9.15 	and an amount equivalent to 8.5 percent  until June 30, 2015, and eight percent thereafter 
9.16 	of the total amount due in lieu of interest, or if the delay in payment exceeds one year, 8.5 
9.17 	percent  until June 30, 2015, and eight percent thereafter compound annual interest.
9.18 	(c) If a department fails to take deductions past due for a period of 60 days or less 
9.19 	and the employee is no longer in state service so that the required deductions cannot be 
9.20 	taken from the salary of the employee, the department must nevertheless pay the required 
9.21 	employer contributions. If any department fails to take deductions past due for a period in 
9.22 	excess of 60 days and the employee is no longer in state service, the omitted contributions 
9.23 	must be recovered under paragraph (b).
9.24 	(d) If an employee from whose salary required deductions were past due for a period 
9.25 	of 60 days or less leaves state service before the payment of the omitted deductions and 
9.26 	subsequently returns to state service, the unpaid amount is considered the equivalent of a 
9.27 	refund. The employee accrues no right by reason of the unpaid amount, except that the 
9.28 	employee may pay the amount of omitted deductions as provided in section 352.23.

9.29 	Sec. 4. Minnesota Statutes 2014, section 352.04, subdivision 9, is amended to read:
9.30 		Subd. 9.Erroneous deductions, canceled warrants. (a) Deductions taken from 
9.31 	the salary of an employee for the retirement fund in excess of required amounts must, 
9.32 	upon discovery and verification by the department making the deduction, be refunded to 
9.33 	the employee.
10.1 	(b) If a deduction for the retirement fund is taken from a salary warrant or check, 
10.2 	and the check is canceled or the amount of the warrant or check returned to the funds of 
10.3 	the department making the payment, the sum deducted, or the part of it required to adjust 
10.4 	the deductions, must be refunded to the department or institution if the department applies 
10.5 	for the refund on a form furnished by the director. The department's payments must 
10.6 	likewise be refunded to the department.
10.7 	(c) If erroneous employee deductions and employer contributions are caused by an 
10.8 	error in plan coverage involving the plan and any other plans specified in section 356.99, 
10.9 	that section applies. If the employee should have been covered by the plan governed by 
10.10 	chapter 352D, 353D, 354B, or 354D, the employee deductions and employer contributions 
10.11 	taken in error must be directly transferred to the applicable employee's account in the 
10.12 	correct retirement plan, with interest at the rate of 0.71 percent per month until June 30, 
10.13 	2015, and 0.667 percent per month thereafter, compounded annually, from the first day of 
10.14 	the month following the month in which coverage should have commenced in the correct 
10.15 	defined contribution plan until the end of the month in which the transfer occurs.

10.16 	Sec. 5. Minnesota Statutes 2014, section 352.23, is amended to read:
10.17 	352.23 TERMINATION OF RIGHTS.
10.18 	When any employee accepts a refund as provided in section 352.22, all existing 
10.19 	service credits and all rights and benefits to which the employee was entitled before 
10.20 	accepting the refund terminate. They must not again be restored until the former employee 
10.21 	acquires at least six months of allowable service credit after taking the last refund. In that 
10.22 	event, the employee may repay all refunds previously taken from the retirement fund. 
10.23 	Repayment of refunds entitles the employee only to credit for service covered by (1) 
10.24 	salary deductions; (2) payments made in lieu of salary deductions; (3) payments made 
10.25 	to obtain credit for service as permitted by laws in effect when payment was made; and 
10.26 	(4) allowable service once credited while receiving temporary workers' compensation as 
10.27 	provided in section 352.01, subdivision 11, clause (5). Payments under this section for 
10.28 	repayment of refunds are to be paid with interest at an annualthe rate of 8.5 percent until 
10.29 	June 30, 2015, and eight percent thereafter compounded annually. They may be paid in a 
10.30 	lump sum or by payroll deduction in the manner provided in section 352.04. Payment may 
10.31 	be made in a lump sum up to six months after termination from service.

10.32 	Sec. 6. Minnesota Statutes 2014, section 352B.11, subdivision 4, is amended to read:
10.33 		Subd. 4.Reentry into state service. When a former member, who has become 
10.34 	separated from state service that entitled the member to membership and has received a 
11.1 	refund of retirement payments, reenters the state service in a position that entitles the 
11.2 	member to membership, that member shall receive credit for the period of prior allowable 
11.3 	state service if the member repays into the fund the amount of the refund, plus interest 
11.4 	on it at an annualthe rate of 8.5 percent until June 30, 2015, and eight percent thereafter 
11.5 	compounded annually, at any time before subsequent retirement. Repayment may be made 
11.6 	in installments or in a lump sum.

11.7 	Sec. 7. Minnesota Statutes 2014, section 352D.05, subdivision 4, is amended to read:
11.8 		Subd. 4.Repayment of refund. (a) A participant in the unclassified program may 
11.9 	repay regular refunds taken under section 352.22, as provided in section 352.23.
11.10 	(b) A participant in the unclassified program or an employee covered by the general 
11.11 	employees retirement plan who has withdrawn the value of the total shares may repay the 
11.12 	refund taken and thereupon restore the service credit, rights and benefits forfeited by paying 
11.13 	into the fund the amount refunded plus interest at an annualthe rate of 8.5 percent until 
11.14 	June 30, 2015, and eight percent thereafter compounded annually from the date that the 
11.15 	refund was taken until the date that the refund is repaid. If the participant had withdrawn 
11.16 	only the employee shares as permitted under prior laws, repayment must be pro rata.
11.17 	(c) Except as provided in section 356.441, the repayment of a refund under this 
11.18 	section must be made in a lump sum.

11.19 	Sec. 8. Minnesota Statutes 2014, section 352D.12, is amended to read:
11.20 	352D.12 TRANSFER OF PRIOR SERVICE CONTRIBUTIONS.
11.21 	(a) An employee who is a participant in the unclassified program and who has prior 
11.22 	service credit in a covered plan under chapter 352, 353, 354, 354A, or 422A may, within 
11.23 	the time limits specified in this section, elect to transfer to the unclassified program prior 
11.24 	service contributions to one or more of those plans.
11.25 	(b) For participants with prior service credit in a plan governed by chapter 352, 353, 
11.26 	354, 354A, or 422A, "prior service contributions" means the accumulated employee and 
11.27 	equal employer contributions with interest at an annualthe rate of 8.5 percent  until June 
11.28 	30, 2015, and eight percent thereafter compounded annually, based on fiscal year balances.
11.29 	(c) If a participant has taken a refund from a retirement plan listed in this section, 
11.30 	the participant may repay the refund to that plan, notwithstanding any restrictions on 
11.31 	repayment to that plan, plus 8.5 percent interest until June 30, 2015, and eight percent 
11.32 	interest thereafter compounded annually and have the accumulated employee and equal 
11.33 	employer contributions transferred to the unclassified program with interest at an annualthe 
11.34 	rate of 8.5 percent until June 30, 2015, and eight percent thereafter compounded annually 
12.1 	based on fiscal year balances. If a person repays a refund and subsequently elects to have 
12.2 	the money transferred to the unclassified program, the repayment amount, including 
12.3 	interest, is added to the fiscal year balance in the year which the repayment was made.
12.4 	(d) A participant electing to transfer prior service contributions credited to a 
12.5 	retirement plan governed by chapter 352, 353, 354, 354A, or 422A as provided under this 
12.6 	section must complete a written application for the transfer and repay any refund within 
12.7 	one year of the commencement of the employee's participation in the unclassified program.

12.8 	Sec. 9. Minnesota Statutes 2014, section 353.27, subdivision 7a, is amended to read:
12.9 		Subd. 7a.Deductions or contributions transmitted by error. (a) If employee 
12.10 	deductions and employer contributions under this section, section 353.50, 353.65, or 
12.11 	353E.03 were erroneously transmitted to the association, but should have been transmitted 
12.12 	to a plan covered by chapter 352D, 353D, 354B, or 354D, the executive director shall 
12.13 	transfer the erroneous employee deductions and employer contributions to the appropriate 
12.14 	retirement fund or individual account, as applicable. The time limitations specified in 
12.15 	subdivisions 7 and 12 do not apply. The transfer to the applicable defined contribution 
12.16 	plan account must include interest at the rate of 0.71 percent per month until June 30, 
12.17 	2015, and 0.667 percent per month thereafter, compounded annually, from the first day of 
12.18 	the month following the month in which coverage should have commenced in the defined 
12.19 	contribution plan until the end of the month in which the transfer occurs.
12.20 	(b) A potential transfer under paragraph (a) that is reasonably determined to cause 
12.21 	the plan to fail to be a qualified plan under section 401(a) of the federal Internal Revenue 
12.22 	Code, as amended, must not be made by the executive director of the association. Within 
12.23 	30 days after being notified by the Public Employees Retirement Association of an 
12.24 	unmade potential transfer under this paragraph, the employer of the affected person 
12.25 	must transmit an amount representing the applicable salary deductions and employer 
12.26 	contributions, without interest, to the retirement fund of the appropriate Minnesota public 
12.27 	pension plan, or to the applicable individual account if the proper coverage is by a defined 
12.28 	contribution plan. The association must provide the employing unit a credit for the amount 
12.29 	of the erroneous salary deductions and employer contributions against future contributions 
12.30 	from the employer. If the employing unit receives a credit under this paragraph, the 
12.31 	employing unit is responsible for refunding to the applicable employee any amount that 
12.32 	had been erroneously deducted from the person's salary.
12.33 	(c) If erroneous employee deductions and employer contributions reflect a plan 
12.34 	coverage error involving any Public Employees Retirement Association plan specified in 
12.35 	section 356.99 and any other plan specified in that section, section 356.99 applies.

13.1 	Sec. 10. Minnesota Statutes 2014, section 353.27, subdivision 12, is amended to read:
13.2 		Subd. 12.Omitted salary deductions; obligations. (a) In the case of omission of 
13.3 	required deductions for the general employees retirement plan, the public employees police 
13.4 	and fire retirement plan, or the local government correctional employees retirement plan 
13.5 	from the salary of an employee, the department head or designee shall immediately, upon 
13.6 	discovery, report the employee for membership and deduct the employee deductions under 
13.7 	subdivision 4 during the current pay period or during the pay period immediately following 
13.8 	the discovery of the omission. Payment for the omitted obligations may only be made in 
13.9 	accordance with reporting procedures and methods established by the executive director.
13.10 	(b) When the entire omission period of an employee does not exceed 60 days, the 
13.11 	governmental subdivision may report and submit payment of the omitted employee 
13.12 	deductions and the omitted employer contributions through the reporting processes under 
13.13 	subdivision 4.
13.14 	(c) When the omission period of an employee exceeds 60 days, the governmental 
13.15 	subdivision shall furnish to the association sufficient data and documentation upon which 
13.16 	the obligation for omitted employee and employer contributions can be calculated. 
13.17 	The omitted employee deductions must be deducted from the employee's subsequent 
13.18 	salary payment or payments and remitted to the association for deposit in the applicable 
13.19 	retirement fund. The employee shall pay omitted employee deductions due for the 60 
13.20 	days prior to the end of the last pay period in the omission period during which salary 
13.21 	was earned. The employer shall pay any remaining omitted employee deductions and any 
13.22 	omitted employer contributions, plus cumulative interest at anthe annual rate of 8.5 
13.23 	percent until June 30, 2015, and eight percent thereafter compounded annually, from the 
13.24 	date or dates each omitted employee contribution was first payable.
13.25 	(d) An employer shall not hold an employee liable for omitted employee deductions 
13.26 	beyond the pay period dates under paragraph (c), nor attempt to recover from the employee 
13.27 	those employee deductions paid by the employer on behalf of the employee. Omitted 
13.28 	deductions due under paragraph (c) which are not paid by the employee constitute a 
13.29 	liability of the employer that failed to deduct the omitted deductions from the employee's 
13.30 	salary. The employer shall make payment with interest at anthe annual rate of 8.5 percent 
13.31 	until June 30, 2015, and eight percent thereafter compounded annually. Omitted employee 
13.32 	deductions are no longer due if an employee terminates public service before making 
13.33 	payment of omitted employee deductions to the association, but the employer remains 
13.34 	liable to pay omitted employer contributions plus interest at anthe annual rate of 8.5 
13.35 	percent until June 30, 2015, and eight percent thereafter compounded annually from the 
13.36 	date the contributions were first payable.
14.1 	(e) The association may not commence action for the recovery of omitted employee 
14.2 	deductions and employer contributions after the expiration of three calendar years after 
14.3 	the calendar year in which the contributions and deductions were omitted. Except as 
14.4 	provided under paragraph (b), no payment may be made or accepted unless the association 
14.5 	has already commenced action for recovery of omitted deductions. An action for recovery 
14.6 	commences on the date of the mailing of any written correspondence from the association 
14.7 	requesting information from the governmental subdivision upon which to determine 
14.8 	whether or not omitted deductions occurred.

14.9 	Sec. 11. Minnesota Statutes 2014, section 353.27, subdivision 12a, is amended to read:
14.10 		Subd. 12a.Terminated employees: omitted deductions. A terminated employee 
14.11 	who was a member of the general employees retirement plan of the Public Employees 
14.12 	Retirement Association, the public employees police and fire retirement plan, or the local 
14.13 	government correctional employees retirement plan and who has a period of employment 
14.14 	in which previously omitted employer contributions were made under subdivision 12 
14.15 	but for whom no, or only partial, omitted employee contributions have been made, or 
14.16 	a member who had prior coverage in the association for which previously omitted 
14.17 	employer contributions were made under subdivision 12 but who terminated service 
14.18 	before required omitted employee deductions could be withheld from salary, may pay the 
14.19 	omitted employee deductions for the period on which omitted employer contributions 
14.20 	were previously paid plus interest at anthe annual rate of 8.5 percent until June 30, 2015, 
14.21 	and eight percent thereafter compounded annually. A terminated employee may pay the 
14.22 	omitted employee deductions plus interest within six months of an initial notification from 
14.23 	the association of eligibility to pay those omitted deductions. If a terminated employee 
14.24 	is reemployed in a position covered under a public pension fund under section 356.30, 
14.25 	subdivision 3, and elects to pay omitted employee deductions, payment must be made no 
14.26 	later than six months after a subsequent termination of public service.

14.27 	Sec. 12. Minnesota Statutes 2014, section 353.28, subdivision 5, is amended to read:
14.28 		Subd. 5.Interest chargeable on amounts due. Any amount due under this section 
14.29 	or section 353.27, subdivision 4, is payable with interest at anthe annual compound rate 
14.30 	of 8.5 percent until June 30, 2015, and eight percent thereafter from the date due until the 
14.31 	date payment is received by the association, with a minimum interest charge of $10.

14.32 	Sec. 13. Minnesota Statutes 2014, section 353.35, subdivision 1, is amended to read:
15.1 		Subdivision 1.Refund rights. (a) Except as provided in paragraph (b), when any 
15.2 	former member accepts a refund, all existing service credits and all rights and benefits to 
15.3 	which the person was entitled prior to the acceptance of the refund must terminate.
15.4 	(b) A refund under section 353.651, subdivision 3, paragraph (c), does not result in a 
15.5 	forfeiture of salary credit for the allowable service credit covered by the refund.
15.6 	(c) The rights and benefits of a former member must not be restored until the person 
15.7 	returns to active service and acquires at least six months of allowable service credit after 
15.8 	taking the last refund and repays the refund or refunds taken and interest received under 
15.9 	section 353.34, subdivisions 1 and 2, plus interest at anthe annual rate of 8.5 percent until 
15.10 	June 30, 2015, and eight percent thereafter compounded annually. If the person elects to 
15.11 	restore service credit in a particular fund from which the person has taken more than one 
15.12 	refund, the person must repay all refunds to that fund. All refunds must be repaid within 
15.13 	six months of the last date of termination of public service.

15.14 	Sec. 14. Minnesota Statutes 2014, section 354A.093, subdivision 6, is amended to read:
15.15 		Subd. 6.Interest requirements. The employer shall pay interest on all equivalent 
15.16 	employee and employer contribution amounts payable under this section. Interest must 
15.17 	be computed at athe rate of 8.5 percent until June 30, 2015, and eight percent thereafter 
15.18 	compounded annually from the end of each fiscal year of the leave or break in service to 
15.19 	the end of the month in which payment is received.

15.20 	Sec. 15. Minnesota Statutes 2014, section 354A.38, subdivision 3, is amended to read:
15.21 		Subd. 3.Computation of refund repayment amount. If the coordinated member 
15.22 	elects to repay a refund under subdivision 2, the repayment to the fund must be in an 
15.23 	amount equal to refunds the member has accepted plus interest at the rate of 8.5 percent 
15.24 	until June 30, 2015, and eight percent thereafter compounded annually from the date that 
15.25 	the refund was accepted to the date that the refund is repaid.

15.26 	Sec. 16. Minnesota Statutes 2014, section 356.44, is amended to read:
15.27 	356.44 PARTIAL PAYMENT OF PENSION PLAN REFUND.
15.28 	(a) Notwithstanding any provision of law to the contrary, a member of a pension 
15.29 	plan listed in section 356.30, subdivision 3, with at least two years of forfeited service 
15.30 	taken from a single pension plan, may repay a portion of all refunds. A partial refund 
15.31 	repayment must comply with this section.
15.32 	(b) The minimum portion of a refund repayment is one-third of the total service 
15.33 	credit period of all refunds taken from a single plan.
16.1 	(c) The cost of the partial refund repayment is the product of the cost of the total 
16.2 	repayment multiplied by the ratio of the restored service credit to the total forfeited service 
16.3 	credit. The total repayment amount includes interest at the annual rate of 8.5 percent for 
16.4 	any period for the Teachers Retirement Association and is 8.5 percent until June 30, 2015, 
16.5 	and 8 percent thereafter for any other retirement plan listed in section 356.30, subdivision 
16.6 	3, compounded annually, from the refund date to the date repayment is received. 
16.7 	(d) The restored service credit must be allocated based on the relationship the 
16.8 	restored service bears to the total service credit period for all refunds taken from a single 
16.9 	pension plan.
16.10 	(e) This section does not authorize a public pension plan member to repay a refund 
16.11 	if the law governing the plan does not authorize the repayment of a refund of member 
16.12 	contributions.

16.13 	Sec. 17. Minnesota Statutes 2014, section 490.124, subdivision 12, is amended to read:
16.14 		Subd. 12.Refund.  (a) A person who ceases to be a judge is entitled to a refund 
16.15 	in an amount that is equal to all of the member's employee contributions to the judges' 
16.16 	retirement fund plus interest computed under section 352.22, subdivision 2.
16.17 	(b) A refund of contributions under paragraph (a) terminates all service credits and 
16.18 	all rights and benefits of the judge and the judge's survivors under this chapter.
16.19 	(c) A person who becomes a judge again after taking a refund under paragraph (a) 
16.20 	may reinstate the previously terminated allowable service credit, rights, and benefits 
16.21 	by repaying the total amount of the previously received refund. The refund repayment 
16.22 	must include interest on the total amount previously received at anthe annual rate of 8.5 
16.23 	percent, until June 30, 2015, and eight percent thereafter compounded annually, from the 
16.24 	date on which the refund was received until the date on which the refund is repaid.

16.25 	Sec. 18. EFFECTIVE DATE.
 16.26 	Unless otherwise specified, this article is effective July 1, 2015.

16.27 	ARTICLE 3
16.28 	CONFORMING CHANGES IN LEAVE AND PRIOR SERVICE CREDIT 
16.29 	PURCHASE PROVISIONS RELATED TO INTEREST ASSUMPTION CHANGE

16.30 	Section 1. Minnesota Statutes 2014, section 352.017, subdivision 2, is amended to read:
16.31 		Subd. 2.Purchase procedure. (a) An employee covered by a plan specified in 
16.32 	this chapter may purchase credit for allowable service in that plan for a period specified 
16.33 	in subdivision 1 if the employee makes a payment as specified in paragraph (b) or (c), 
17.1 	whichever applies. The employing unit, at its option, may pay the employer portion of the 
17.2 	amount specified in paragraph (b) on behalf of its employees.
17.3 	(b) If payment is received by the executive director within one year from the date the 
17.4 	employee returned to work following the authorized leave, the payment amount is equal to 
17.5 	the employee and employer contribution rates specified in law for the applicable plan at 
17.6 	the end of the leave period multiplied by the employee's hourly rate of salary on the date 
17.7 	of return from the leave of absence and by the days and months of the leave of absence for 
17.8 	which the employee is eligible for allowable service credit. The payment must include 
17.9 	compound interest at athe monthly rate of 0.71 percent  until June 30, 2015, and 0.667 
17.10 	percent per month thereafter from the last day of the leave period until the last day of the 
17.11 	month in which payment is received. If payment is received by the executive director 
17.12 	after one year, the payment amount is the amount determined under section 356.551. 
17.13 	Payment under this paragraph must be made before the date of termination from public 
17.14 	employment covered under this chapter.
17.15 	(c) If the employee terminates employment covered by this chapter during the leave 
17.16 	or following the leave rather than returning to covered employment, payment must be 
17.17 	received by the executive director within 30 days after the termination date. The payment 
17.18 	amount is equal to the employee and employer contribution rates specified in law for the 
17.19 	applicable plan on the day prior to the termination date, multiplied by the employee's 
17.20 	hourly rate of salary on that date and by the days and months of the leave of absence 
17.21 	prior to termination.

17.22 	Sec. 2. Minnesota Statutes 2014, section 352.27, is amended to read:
17.23 	352.27 CREDIT FOR BREAK IN SERVICE TO PROVIDE UNIFORMED 
17.24 	SERVICE.
17.25 	(a) An employee who is absent from employment by reason of service in the 
17.26 	uniformed services, as defined in United States Code, title 38, section 4303(13), and who 
17.27 	returns to state service upon discharge from service in the uniformed service within the 
17.28 	time frames required in United States Code, title 38, section 4312(e), may obtain service 
17.29 	credit for the period of the uniformed service as further specified in this section, provided 
17.30 	that the employee did not separate from uniformed service with a dishonorable or bad 
17.31 	conduct discharge or under other than honorable conditions.
17.32 	(b) The employee may obtain credit by paying into the fund an equivalent employee 
17.33 	contribution based upon the contribution rate or rates in effect at the time that the 
17.34 	uniformed service was performed multiplied by the full and fractional years being 
17.35 	purchased and applied to the annual salary rate. The annual salary rate is the average 
18.1 	annual salary during the purchase period that the employee would have received if the 
18.2 	employee had continued to be employed in covered employment rather than to provide 
18.3 	uniformed service, or, if the determination of that rate is not reasonably certain, the annual 
18.4 	salary rate is the employee's average salary rate during the 12-month period of covered 
18.5 	employment rendered immediately preceding the period of the uniformed service.
18.6 	(c) The equivalent employer contribution and, if applicable, the equivalent additional 
18.7 	employer contribution provided in this chapter must be paid by the department employing 
18.8 	the employee from funds available to the department at the time and in the manner 
18.9 	provided in this chapter, using the employer and additional employer contribution rate or 
18.10 	rates in effect at the time that the uniformed service was performed, applied to the same 
18.11 	annual salary rate or rates used to compute the equivalent employee contribution.
18.12 	(d) If the employee equivalent contributions provided in this section are not paid in 
18.13 	full, the employee's allowable service credit must be prorated by multiplying the full and 
18.14 	fractional number of years of uniformed service eligible for purchase by the ratio obtained 
18.15 	by dividing the total employee contribution received by the total employee contribution 
18.16 	otherwise required under this section.
18.17 	(e) To receive service credit under this section, the contributions specified in this 
18.18 	section must be transmitted to the Minnesota State Retirement System during the period 
18.19 	which begins with the date on which the individual returns to state service and which has a 
18.20 	duration of three times the length of the uniformed service period, but not to exceed five 
18.21 	years. If the determined payment period is less than one year, the contributions required 
18.22 	under this section to receive service credit may be made within one year of the discharge 
18.23 	date.
18.24 	(f) The amount of service credit obtainable under this section may not exceed five 
18.25 	years unless a longer purchase period is required under United States Code, title 38, 
18.26 	section 4312.
18.27 	(g) The employing unit shall pay interest on all equivalent employee and employer 
18.28 	contribution amounts payable under this section. Interest must be computed at athe rate 
18.29 	of 8.5 percent until June 30, 2015, and eight percent thereafter compounded annually from 
18.30 	the end of each fiscal year of the leave or the break in service to the end of the month in 
18.31 	which the payment is received.

18.32 	Sec. 3. Minnesota Statutes 2014, section 352.955, subdivision 3, is amended to read:
18.33 		Subd. 3.Payment of additional equivalent contributions. (a) An eligible 
18.34 	employee who is transferred to plan coverage and who elects to transfer past service 
18.35 	credit under this section must pay an additional member contribution for that prior service 
19.1 	period. The additional member contribution is the amount computed under paragraph 
19.2 	(b), plus the greater of the amount computed under paragraph (c), or 40 percent of the 
19.3 	unfunded actuarial accrued liability attributable to the past service credit transfer.
19.4 	(b) The executive director shall compute, for the most recent 12 months of service 
19.5 	credit eligible for transfer, or for the entire period eligible for transfer if less than 12 
19.6 	months, the difference between the employee contribution rate or rates for the general state 
19.7 	employees retirement plan and the employee contribution rate or rates for the correctional 
19.8 	state employees retirement plan applied to the eligible employee's salary during that 
19.9 	transfer period, plus compound interest at athe monthly rate of 0.71 percent until June 30, 
19.10 	2015, and 0.667 percent per month thereafter.
19.11 	(c) The executive director shall compute, for any service credit being transferred 
19.12 	on behalf of the eligible employee and not included under paragraph (b), the difference 
19.13 	between the employee contribution rate or rates for the general state employees retirement 
19.14 	plan and the employee contribution rate or rates for the correctional state employees 
19.15 	retirement plan applied to the eligible employee's salary during that transfer period, plus 
19.16 	compound interest at athe monthly rate of 0.71 percent until June 30, 2015, and 0.667 
19.17 	percent per month thereafter.
19.18 	(d) The executive director shall compute an amount using the process specified in 
19.19 	paragraph (b), but based on differences in employer contribution rates between the general 
19.20 	state employees retirement plan and the correctional state employees retirement plan 
19.21 	rather than employee contribution rates.
19.22 	(e) The executive director shall compute an amount using the process specified in 
19.23 	paragraph (c), but based on differences in employer contribution rates between the general 
19.24 	state employees retirement plan and the correctional state employees retirement plan 
19.25 	rather than employee contribution rates.
19.26 	(f) The additional equivalent member contribution under this subdivision must be 
19.27 	paid in a lump sum. Payment must accompany the election to transfer the prior service 
19.28 	credit. No transfer election or additional equivalent member contribution payment may be 
19.29 	made by a person or accepted by the executive director after the one year anniversary date 
19.30 	of the effective date of the retirement coverage transfer, or the date on which the eligible 
19.31 	employee terminates state employment, whichever is earlier.
19.32 	(g) If an eligible employee elects to transfer past service credit under this section 
19.33 	and pays the additional equivalent member contribution amount under paragraph (a), the 
19.34 	applicable department shall pay an additional equivalent employer contribution amount. 
19.35 	The additional employer contribution is the amount computed under paragraph (d), plus 
20.1 	the greater of the amount computed under paragraph (e), or 60 percent of the unfunded 
20.2 	actuarial accrued liability attributable to the past service credit transfer.
20.3 	(h) The unfunded actuarial accrued liability attributable to the past service credit 
20.4 	transfer is the present value of the benefit obtained by the transfer of the service credit 
20.5 	to the correctional state employees retirement plan reduced by the amount of the asset 
20.6 	transfer under subdivision 4, by the amount of the member contribution equivalent 
20.7 	payment computed under paragraph (b), and by the amount of the employer contribution 
20.8 	equivalent payment computed under paragraph (d).
20.9 	(i) The additional equivalent employer contribution under this subdivision must be 
20.10 	paid in a lump sum and must be paid within 30 days of the date on which the executive 
20.11 	director of the Minnesota State Retirement System certifies to the applicable department 
20.12 	that the employee paid the additional equivalent member contribution.

20.13 	Sec. 4. Minnesota Statutes 2014, section 352B.013, subdivision 2, is amended to read:
20.14 		Subd. 2.Purchase procedure. (a) An employee covered by the plan specified in 
20.15 	this chapter may purchase credit for allowable service in the plan for a period specified 
20.16 	in subdivision 1 if the employee makes a payment as specified in paragraph (b) or (c), 
20.17 	whichever applies. The employing unit, at its option, may pay the employer portion of the 
20.18 	amount specified in paragraph (b) on behalf of its employees.
20.19 	(b) If payment is received by the executive director within one year from the date 
20.20 	the employee returned to work following the authorized leave, the payment amount is 
20.21 	equal to the employee and employer contribution rates specified in section 352B.02 at the 
20.22 	end of the leave period multiplied by the employee's hourly rate of salary on the date of 
20.23 	return from the leave of absence and by the days and months of the leave of absence for 
20.24 	which the employee is eligible for allowable service credit. The payment must include 
20.25 	compound interest at athe monthly rate of 0.71 percent  until June 30, 2015, and 0.667 
20.26 	percent per month thereafter from the last day of the leave period until the last day of the 
20.27 	month in which payment is received. If payment is received by the executive director after 
20.28 	one year from the date the employee returned to work following the authorized leave, the 
20.29 	payment amount is the amount determined under section 356.551. Payment under this 
20.30 	paragraph must be made before the date of termination from public employment covered 
20.31 	under this chapter.
20.32 	(c) If the employee terminates employment covered by this chapter during the leave 
20.33 	or following the leave rather than returning to covered employment, payment must be 
20.34 	received by the executive director within 30 days after the termination date. The payment 
20.35 	amount is equal to the employee and employer contribution rates specified in section 
21.1 	352B.02 on the day prior to the termination date, multiplied by the employee's hourly rate of 
21.2 	salary on that date and by the days and months of the leave of absence prior to termination.

21.3 	Sec. 5. Minnesota Statutes 2014, section 352B.085, is amended to read:
21.4 	352B.085 SERVICE CREDIT FOR CERTAIN DISABILITY LEAVES OF 
21.5 	ABSENCE.
21.6 	A member on leave of absence receiving temporary workers' compensation 
21.7 	payments and a reduced salary or no salary from the employer who is entitled to allowable 
21.8 	service credit for the period of absence under section 352B.011, subdivision 3, paragraph 
21.9 	(b), may make payment to the fund for the difference between salary received, if any, 
21.10 	and the salary that the member would normally receive if the member was not on leave 
21.11 	of absence during the period. The member shall pay an amount equal to the member 
21.12 	and employer contribution rate under section 352B.02, subdivisions 1b and 1c, on 
21.13 	the differential salary amount for the period of the leave of absence. The employing 
21.14 	department, at its option, may pay the employer amount on behalf of the member. 
21.15 	Payment made under this subdivision must include interest at the rate of 8.5 percent until 
21.16 	June 30, 2015, and eight percent thereafter per year, and must be completed within one 
21.17 	year of the member's return from the leave of absence.

21.18 	Sec. 6. Minnesota Statutes 2014, section 352B.086, is amended to read:
21.19 	352B.086 SERVICE CREDIT FOR UNIFORMED SERVICE.
21.20 	(a) A member who is absent from employment by reason of service in the uniformed 
21.21 	services, as defined in United States Code, title 38, section 4303(13), and who returns to 
21.22 	state employment in a position covered by the plan upon discharge from service in the 
21.23 	uniformed services within the time frame required in United States Code, title 38, section 
21.24 	4312(e), may obtain service credit for the period of the uniformed service, provided that 
21.25 	the member did not separate from uniformed service with a dishonorable or bad conduct 
21.26 	discharge or under other than honorable conditions.
21.27 	(b) The member may obtain credit by paying into the fund an equivalent member 
21.28 	contribution based on the member contribution rate or rates in effect at the time that 
21.29 	the uniformed service was performed multiplied by the full and fractional years being 
21.30 	purchased and applied to the annual salary rate. The annual salary rate is the average 
21.31 	annual salary during the purchase period that the member would have received if the 
21.32 	member had continued to provide employment services to the state rather than to provide 
21.33 	uniformed service, or if the determination of that rate is not reasonably certain, the annual 
22.1 	salary rate is the member's average salary rate during the 12-month period of covered 
22.2 	employment rendered immediately preceding the purchase period.
22.3 	(c) The equivalent employer contribution and, if applicable, the equivalent employer 
22.4 	additional contribution, must be paid by the employing unit, using the employer and 
22.5 	employer additional contribution rate or rates in effect at the time that the uniformed 
22.6 	service was performed, applied to the same annual salary rate or rates used to compute the 
22.7 	equivalent member contribution.
22.8 	(d) If the member equivalent contributions provided for in this section are not paid 
22.9 	in full, the member's allowable service credit must be prorated by multiplying the full and 
22.10 	fractional number of years of uniformed service eligible for purchase by the ratio obtained 
22.11 	by dividing the total member contributions received by the total member contributions 
22.12 	otherwise required under this section.
22.13 	(e) To receive allowable service credit under this section, the contributions specified 
22.14 	in this section must be transmitted to the fund during the period which begins with the 
22.15 	date on which the individual returns to state employment covered by the plan and which 
22.16 	has a duration of three times the length of the uniformed service period, but not to exceed 
22.17 	five years. If the determined payment period is calculated to be less than one year, the 
22.18 	contributions required under this section to receive service credit must be transmitted to 
22.19 	the fund within one year from the discharge date.
22.20 	(f) The amount of allowable service credit obtainable under this section may not 
22.21 	exceed five years, unless a longer purchase period is required under United States Code, 
22.22 	title 38, section 4312.
22.23 	(g) The employing unit shall pay interest on all equivalent member and employer 
22.24 	contribution amounts payable under this section. Interest must be computed at athe rate 
22.25 	of 8.5 percent until June 30, 2015, and eight percent thereafter compounded annually from 
22.26 	the end of each fiscal year of the leave or break in service to the end of the month in 
22.27 	which payment is received.

22.28 	Sec. 7. Minnesota Statutes 2014, section 352D.11, subdivision 2, is amended to read:
22.29 		Subd. 2.Payments by employee. An employee entitled to purchase service credit 
22.30 	may make the purchase by paying to the state retirement system an amount equal to 
22.31 	the current employee contribution rate in effect for the state retirement system applied 
22.32 	to the current or final salary rate multiplied by the months and days of prior temporary, 
22.33 	intermittent, or contract legislative service. Payment shall be made in one lump sum 
22.34 	unless the executive director of the state retirement system agrees to accept payment in 
22.35 	installments over a period of not more than three years from the date of the agreement. 
23.1 	Installment payments shall be charged interest at an annualthe rate of 8.5 percent until 
23.2 	June 30, 2015, and eight percent thereafter compounded annually.

23.3 	Sec. 8. Minnesota Statutes 2014, section 353.01, subdivision 16, is amended to read:
23.4 		Subd. 16.Allowable service; limits and computation. (a) "Allowable service" 
23.5 	means:
23.6 	(1) service during years of actual membership in the course of which employee 
23.7 	deductions were withheld from salary and contributions were made at the applicable rates 
23.8 	under section 353.27, 353.65, or 353E.03;
23.9 	(2) periods of service covered by payments in lieu of salary deductions under 
23.10 	sections 353.27, subdivision 12, and 353.35;
23.11 	(3) service in years during which the public employee was not a member but for 
23.12 	which the member later elected, while a member, to obtain credit by making payments to 
23.13 	the fund as permitted by any law then in effect;
23.14 	(4) a period of authorized leave of absence with pay from which deductions for 
23.15 	employee contributions are made, deposited, and credited to the fund;
23.16 	(5) a period of authorized personal, parental, or medical leave of absence without 
23.17 	pay, including a leave of absence covered under the federal Family Medical Leave Act, 
23.18 	that does not exceed one year, and for which a member obtained service credit for each 
23.19 	month in the leave period by payment under section 353.0161 to the fund made in place of 
23.20 	salary deductions. An employee must return to public service and render a minimum of 
23.21 	three months of allowable service in order to be eligible to make payment under section 
23.22 	353.0161 for a subsequent authorized leave of absence without pay. Upon payment, the 
23.23 	employee must be granted allowable service credit for the purchased period;
23.24 	(6) a periodic, repetitive leave that is offered to all employees of a governmental 
23.25 	subdivision. The leave program may not exceed 208 hours per annual normal work cycle 
23.26 	as certified to the association by the employer. A participating member obtains service 
23.27 	credit by making employee contributions in an amount or amounts based on the member's 
23.28 	average salary, excluding overtime pay, that would have been paid if the leave had not 
23.29 	been taken. The employer shall pay the employer and additional employer contributions 
23.30 	on behalf of the participating member. The employee and the employer are responsible to 
23.31 	pay interest on their respective shares at the rate of 8.5 percent a year until June 30, 2015, 
23.32 	and eight percent thereafter, compounded annually, from the end of the normal cycle 
23.33 	until full payment is made. An employer shall also make the employer and additional 
23.34 	employer contributions, plus 8.5 percent interest until June 30, 2015, and eight percent 
23.35 	interest thereafter, compounded annually, on behalf of an employee who makes employee 
24.1 	contributions but terminates public service. The employee contributions must be made 
24.2 	within one year after the end of the annual normal working cycle or within 30 days after 
24.3 	termination of public service, whichever is sooner. The executive director shall prescribe 
24.4 	the manner and forms to be used by a governmental subdivision in administering a 
24.5 	periodic, repetitive leave. Upon payment, the member must be granted allowable service 
24.6 	credit for the purchased period;
24.7 	(7) an authorized temporary or seasonal layoff under subdivision 12, limited to three 
24.8 	months allowable service per authorized temporary or seasonal layoff in one calendar year. 
24.9 	An employee who has received the maximum service credit allowed for an authorized 
24.10 	temporary or seasonal layoff must return to public service and must obtain a minimum of 
24.11 	three months of allowable service subsequent to the layoff in order to receive allowable 
24.12 	service for a subsequent authorized temporary or seasonal layoff;
24.13 	(8) a period during which a member is absent from employment by a governmental 
24.14 	subdivision by reason of service in the uniformed services, as defined in United States 
24.15 	Code, title 38, section 4303(13), if the member returns to public service with the same 
24.16 	governmental subdivision upon discharge from service in the uniformed service within the 
24.17 	time frames required under United States Code, title 38, section 4312(e), provided that 
24.18 	the member did not separate from uniformed service with a dishonorable or bad conduct 
24.19 	discharge or under other than honorable conditions. The service must be credited if the 
24.20 	member pays into the fund equivalent employee contributions based upon the contribution 
24.21 	rate or rates in effect at the time that the uniformed service was performed multiplied by 
24.22 	the full and fractional years being purchased and applied to the annual salary rate. The 
24.23 	annual salary rate is the average annual salary during the purchase period that the member 
24.24 	would have received if the member had continued to be employed in covered employment 
24.25 	rather than to provide uniformed service, or, if the determination of that rate is not 
24.26 	reasonably certain, the annual salary rate is the member's average salary rate during the 
24.27 	12-month period of covered employment rendered immediately preceding the period of the 
24.28 	uniformed service. Payment of the member equivalent contributions must be made during 
24.29 	a period that begins with the date on which the individual returns to public employment 
24.30 	and that is three times the length of the military leave period, or within five years of the 
24.31 	date of discharge from the military service, whichever is less. If the determined payment 
24.32 	period is less than one year, the contributions required under this clause to receive service 
24.33 	credit may be made within one year of the discharge date. Payment may not be accepted 
24.34 	following 30 days after termination of public service under subdivision 11a. If the member 
24.35 	equivalent contributions provided for in this clause are not paid in full, the member's 
24.36 	allowable service credit must be prorated by multiplying the full and fractional number 
25.1 	of years of uniformed service eligible for purchase by the ratio obtained by dividing the 
25.2 	total member contributions received by the total member contributions otherwise required 
25.3 	under this clause. The equivalent employer contribution, and, if applicable, the equivalent 
25.4 	additional employer contribution must be paid by the governmental subdivision employing 
25.5 	the member if the member makes the equivalent employee contributions. The employer 
25.6 	payments must be made from funds available to the employing unit, using the employer 
25.7 	and additional employer contribution rate or rates in effect at the time that the uniformed 
25.8 	service was performed, applied to the same annual salary rate or rates used to compute the 
25.9 	equivalent member contribution. The governmental subdivision involved may appropriate 
25.10 	money for those payments. The amount of service credit obtainable under this section 
25.11 	may not exceed five years unless a longer purchase period is required under United States 
25.12 	Code, title 38, section 4312. The employing unit shall pay interest on all equivalent 
25.13 	member and employer contribution amounts payable under this clause. Interest must be 
25.14 	computed at athe rate of 8.5 percent until June 30, 2015, and eight percent thereafter 
25.15 	compounded annually from the end of each fiscal year of the leave or the break in service 
25.16 	to the end of the month in which the payment is received. Upon payment, the employee 
25.17 	must be granted allowable service credit for the purchased period; or
25.18 	(9) a period specified under section 353.0162.
25.19 	(b) For calculating benefits under sections 353.30, 353.31, 353.32, and 353.33 for 
25.20 	state officers and employees displaced by the Community Corrections Act, chapter 401, 
25.21 	and transferred into county service under section 401.04, "allowable service" means the 
25.22 	combined years of allowable service as defined in paragraph (a), clauses (1) to (6), and 
25.23 	section 352.01, subdivision 11.
25.24 	(c) No member may receive more than 12 months of allowable service credit in a 
25.25 	year either for vesting purposes or for benefit calculation purposes. For an active member 
25.26 	who was an active member of the former Minneapolis Firefighters Relief Association 
25.27 	on December 29, 2011, "allowable service" is the period of service credited by the 
25.28 	Minneapolis Firefighters Relief Association as reflected in the transferred records of the 
25.29 	association up to December 30, 2011, and the period of service credited under paragraph 
25.30 	(a), clause (1), after December 30, 2011. For an active member who was an active member 
25.31 	of the former Minneapolis Police Relief Association on December 29, 2011, "allowable 
25.32 	service" is the period of service credited by the Minneapolis Police Relief Association as 
25.33 	reflected in the transferred records of the association up to December 30, 2011, and the 
25.34 	period of service credited under paragraph (a), clause (1), after December 30, 2011.
25.35 	(d) MS 2002 [Expired]

26.1 	Sec. 9. Minnesota Statutes 2014, section 353.0161, subdivision 2, is amended to read:
26.2 		Subd. 2.Purchase procedure. (a) An employee covered by a plan specified in 
26.3 	subdivision 1 may purchase credit for allowable service in that plan for a period specified 
26.4 	in subdivision 1 if the employee makes a payment as specified in paragraph (b) or (c), 
26.5 	whichever applies. The employing unit, at its option, may pay the employer portion of the 
26.6 	amount specified in paragraph (b) on behalf of its employees.
26.7 	(b) If payment is received by the executive director within one year from the date 
26.8 	the member returned to work following the authorized leave, or within 30 days after the 
26.9 	date of termination of public service if the member did not return to work, the payment 
26.10 	amount is equal to the employee and employer contribution rates specified in law for 
26.11 	the applicable plan at the end of the leave period, or at termination of public service, 
26.12 	whichever is earlier, multiplied by the employee's average monthly salary, excluding 
26.13 	overtime, upon which deductions were paid during the six months, or portion thereof, 
26.14 	before the commencement of the leave of absence and by the number of months of the 
26.15 	leave of absence for which the employee wants allowable service credit. Payments made 
26.16 	under this paragraph must include compound interest at athe monthly rate of 0.71 percent 
26.17 	until June 30, 2015, and 0.667 percent per month thereafter from the last day of the leave 
26.18 	period until the last day of the month in which payment is received.
26.19 	(c) If payment is received by the executive director after one year, the payment 
26.20 	amount is the amount determined under section 356.551. Payment under this paragraph 
26.21 	must be made before the date the person terminates public service under section 353.01, 
26.22 	subdivision 11a.

26.23 	Sec. 10. Minnesota Statutes 2014, section 353.0162, is amended to read:
26.24 	353.0162 REDUCED SALARY PERIODS SALARY CREDIT PURCHASE.
26.25 	(a) A member may purchase additional salary credit for a period specified in this 
26.26 	section.
26.27 	(b) The applicable period is a period during which the member is receiving a reduced 
26.28 	salary from the employer while the member is:
26.29 	(1) receiving temporary workers' compensation payments related to the member's 
26.30 	service to the public employer;
26.31 	(2) on an authorized medical leave of absence; or
26.32 	(3) on an authorized partial paid leave of absence as a result of a budgetary or salary 
26.33 	savings program offered or mandated by a governmental subdivision.
26.34 	(c) The differential salary amount is the difference between the average monthly 
26.35 	salary received by the member during the period of reduced salary under this section and 
27.1 	the average monthly salary of the member, excluding overtime, on which contributions 
27.2 	to the applicable plan were made during the period of the last six months of covered 
27.3 	employment occurring immediately before the period of reduced salary, applied to the 
27.4 	member's normal employment period, measured in hours or otherwise, as applicable.
27.5 	(d) To receive eligible salary credit, the member shall pay an amount equal to:
27.6 	(1) the applicable employee contribution rate under section 353.27, subdivision 
27.7 	2; 353.65, subdivision 2; or 353E.03, subdivision 1, as applicable, multiplied by the 
27.8 	differential salary amount;
27.9 	(2) plus an employer equivalent payment equal to the applicable employer 
27.10 	contribution rate in section 353.27, subdivision 3; 353.65, subdivision 3; or 353E.03, 
27.11 	subdivision 2, as applicable, multiplied by the differential salary amount;
27.12 	(3) plus, if applicable, an equivalent employer additional amount equal to the 
27.13 	additional employer contribution rate in section 353.27, subdivision 3a, multiplied by the 
27.14 	differential salary amount.
27.15 	(e) The employer, by appropriate action of its governing body and documented in its 
27.16 	official records, may pay the employer equivalent contributions and, as applicable, the 
27.17 	equivalent employer additional contributions on behalf of the member.
27.18 	(f) Payment under this section must include interest on the contribution amount or 
27.19 	amounts, whichever applies, at an 8.5 percent annual rate until June 30, 2015, and at an 
27.20 	eight percent annual rate thereafter, prorated for applicable months from the date on which 
27.21 	the period of reduced salary specified under this section terminates to the date on which 
27.22 	the payment or payments are received by the executive director. Payment under this 
27.23 	section must be completed within the earlier of 30 days from termination of public service 
27.24 	by the employee under section 353.01, subdivision 11a, or one year after the termination 
27.25 	of the period specified in paragraph (b), as further restricted under this section.
27.26 	(g) The period for which additional allowable salary credit may be purchased is 
27.27 	limited to the period during which the person receives temporary workers' compensation 
27.28 	payments or for those business years in which the governmental subdivision offers or 
27.29 	mandates a budget or salary savings program, as certified to the executive director by a 
27.30 	resolution of the governing body of the governmental subdivision. For an authorized 
27.31 	medical leave of absence, the period for which allowable salary credit may be purchased 
27.32 	may not exceed 12 consecutive months of authorized medical leave.
27.33 	(h) To purchase salary credit for a subsequent period of temporary workers' 
27.34 	compensation benefits or subsequent authorized medical leave of absence, the member 
27.35 	must return to public service and render a minimum of three months of allowable service.

28.1 	Sec. 11. Minnesota Statutes 2014, section 354A.096, is amended to read:
28.2 	354A.096 MEDICAL LEAVE.
28.3 	Any teacher in the coordinated program of the St. Paul Teachers Retirement Fund 
28.4 	Association who is on an authorized medical leave of absence and subsequently returns 
28.5 	to teaching service is entitled to receive allowable service credit, not to exceed one year, 
28.6 	for the period of leave, upon making the prescribed payment to the fund. This payment 
28.7 	must include the required employee and employer contributions at the rates specified in 
28.8 	section 354A.12, subdivisions 1 and 2a, as applied to the member's average full-time 
28.9 	monthly salary rate on the date the leave of absence commenced plus annual interest at 
28.10 	the rate of 8.5 percent until June 30, 2015, and eight percent thereafter per year from the 
28.11 	end of the fiscal year during which the leave terminates to the end of the month during 
28.12 	which payment is made. The member must pay the total amount required unless the 
28.13 	employing unit, at its option, pays the employer contributions. The total amount required 
28.14 	must be paid by the end of the fiscal year following the fiscal year in which the leave of 
28.15 	absence terminated or before the member retires, whichever is earlier. Payment must be 
28.16 	accompanied by a copy of the resolution or action of the employing authority granting the 
28.17 	leave and the employing authority, upon granting the leave, must certify the leave to the 
28.18 	association in a manner specified by the executive director. A member may not receive 
28.19 	more than one year of allowable service credit during any fiscal year by making payment 
28.20 	under this section. A member may not receive disability benefits under section 354A.36
28.21 	and receive allowable service credit under this section for the same period of time.

28.22 	Sec. 12. Minnesota Statutes 2014, section 354A.108, is amended to read:
28.23 	354A.108 PAYMENT BY TEACHERS COLLECTING WORKERS' 
28.24 	COMPENSATION.
28.25 	(a) A member of the Duluth Teachers Retirement Fund Association who is receiving 
28.26 	temporary workers' compensation payments related to the member's teaching service 
28.27 	and who either is receiving a reduced salary from the employer or is receiving no salary 
28.28 	from the employer is entitled to receive allowable service credit for the period of time 
28.29 	that the member is receiving the workers' compensation payments upon making the 
28.30 	required payment amount.
28.31 	(b) The required amount payable by the member must be calculated first by 
28.32 	determining the differential salary amount, which is the difference between the salary 
28.33 	received, if any, during the period of time that the member is collecting workers' 
28.34 	compensation payments, and the salary that the member received for an identical length 
28.35 	period immediately before collecting the workers' compensation payments. The member 
29.1 	shall pay an amount equal to the employee contribution rate under section 354A.12, 
29.2 	subdivision 1, multiplied by the differential salary amount.
29.3 	(c) If the member makes the employee payment under this section, the employing 
29.4 	unit shall make an employer payment to the Duluth Teachers Retirement Fund Association 
29.5 	equal to the employer contribution rate under section 354A.12, subdivision 2a, multiplied 
29.6 	by the differential salary amount.
29.7 	(d) Payments made under this subdivision are payable without interest if paid by 
29.8 	June 30 of the year during which the workers' compensation payments are received by 
29.9 	the member. If paid after June 30, payments made under this subdivision must include 
29.10 	interest at the rate of 8.5 percent until June 30, 2015, and eight percent thereafter per year. 
29.11 	Payment under this section must be completed within one year of the termination of the 
29.12 	workers' compensation payments to the member.

29.13 	Sec. 13. Minnesota Statutes 2014, section 356.195, subdivision 2, is amended to read:
29.14 		Subd. 2.Purchase procedure for strike periods. (a) An employee covered by a 
29.15 	plan specified in subdivision 1 may purchase allowable service credit in the applicable 
29.16 	plan for any period of time during which the employee was on a public employee strike 
29.17 	without pay, not to exceed a period of one year, if the employee makes a payment in 
29.18 	lieu of salary deductions as specified in paragraph (b) or (c), whichever applies. The 
29.19 	employing unit, at its option, may pay the employer portion of the amount specified in 
29.20 	paragraph (b) on behalf of its employees.
29.21 	(b) If payment is received by the applicable pension plan executive director within 
29.22 	one year from the end of the strike, the payment amount is equal to the applicable 
29.23 	employee and employer contribution rates specified in law for the applicable plan during 
29.24 	the strike period, applied to the employee's rate of salary in effect at the conclusion of the 
29.25 	strike for the period of the strike without pay, plus compound interest at athe monthly 
29.26 	rate of 0.71 percent for any period for the Teachers Retirement Association and at the 
29.27 	monthly rate of 0.71 percent until June 30, 2015, and 0.667 percent thereafter for any 
29.28 	other retirement plan listed in section 356.30, subdivision 3 from the last day of the strike 
29.29 	period until the date payment is received.
29.30 	(c) If payment is received by the applicable pension fund director after one year and 
29.31 	before five years from the end of the strike, the payment amount is the amount determined 
29.32 	under section 356.551.
29.33 	(d) Payments may not be made more than five years after the end of the strike.

29.34 	Sec. 14. Minnesota Statutes 2014, section 356.50, subdivision 2, is amended to read:
30.1 		Subd. 2.Service credit procedure.  (a) To obtain the public pension plan 
30.2 	allowable service credit, the eligible person under subdivision 1 shall pay the required 
30.3 	member contribution amount. The required member contribution amount is the member 
30.4 	contribution rate or rates in effect for the pension plan during the period of service covered 
30.5 	by the back pay award, applied to the unpaid gross salary amounts of the back pay award 
30.6 	including unemployment insurance, workers' compensation, or wages from other sources 
30.7 	which reduced the back award. No contributions may be made under this clause for 
30.8 	compensation covered by a public pension plan listed in section 356.30, subdivision 3, 
30.9 	for employment during the removal period. The person shall pay the required member 
30.10 	contribution amount within 60 days of the date of receipt of the back pay award or within 
30.11 	60 days of a billing from the retirement fund, whichever is later. 
30.12 	(b) The public employer who wrongfully discharged the public employee must pay 
30.13 	an employer contribution on the back pay award. The employer contribution must be based 
30.14 	on the employer contribution rate or rates in effect for the pension plan during the period of 
30.15 	service covered by the back pay award, applied to the salary amount on which the member 
30.16 	contribution amount was determined under paragraph (a). Interest on both the required 
30.17 	member and employer contribution amount must be paid by the employer at the annual 
30.18 	compound rate of 8.5 percent for any period for the Teachers Retirement Association and 
30.19 	8.5 percent until June 30, 2015, and 8 percent thereafter, for any other retirement plan 
30.20 	listed in section 356.30, subdivision 3, per year, expressed monthly, between the date the 
30.21 	contribution amount would have been paid to the date of actual payment. The employer 
30.22 	payment must be made within 30 days of the payment under paragraph (a).

30.23 	Sec. 15. Minnesota Statutes 2014, section 356.551, subdivision 2, is amended to read:
30.24 		Subd. 2.Determination. (a) Unless the minimum purchase amount set forth in 
30.25 	paragraph (c) applies, the prior service credit purchase amount is an amount equal to the 
30.26 	actuarial present value, on the date of payment, as calculated by the chief administrative 
30.27 	officer of the pension plan and reviewed by the actuary retained under section 356.214, 
30.28 	of the amount of the additional retirement annuity obtained by the acquisition of the 
30.29 	additional service credit in this section.
30.30 	(b) Calculation of this amount must be made using the preretirement interest rate 
30.31 	applicable to the public pension plan specified in section 356.215, subdivision 8, and 
30.32 	the mortality table adopted for the public pension plan. The calculation must assume 
30.33 	continuous future service in the public pension plan until, and retirement at, the age at 
30.34 	which the minimum requirements of the fund for normal retirement or retirement with an 
30.35 	annuity unreduced for retirement at an early age, including section 356.30, are met with 
31.1 	the additional service credit purchased. The calculation must also assume a full-time 
31.2 	equivalent salary, or actual salary, whichever is greater, and a future salary history that 
31.3 	includes annual salary increases at the applicable salary increase rate for the plan specified 
31.4 	in section 356.215, subdivision 4d.
31.5 	(c) The prior service credit purchase amount may not be less than the amount 
31.6 	determined by applying, for each year or fraction of a year being purchased, the sum of the 
31.7 	employee contribution rate, the employer contribution rate, and the additional employer 
31.8 	contribution rate, if any, applicable during that period, to the person's annual salary during 
31.9 	that period, or fractional portion of a year's salary, if applicable, plus interest at the annual 
31.10 	rate of 8.5 percent until June 30, 2015, and eight percent thereafter compounded annually 
31.11 	from the end of the year in which contributions would otherwise have been made to 
31.12 	the date on which the payment is received.
31.13 	(d) Unless otherwise provided by statutes governing a specific plan, payment must 
31.14 	be made in one lump sum within one year of the prior service credit authorization or prior 
31.15 	to the member's effective date of retirement, whichever is earlier. Payment of the amount 
31.16 	calculated under this section must be made by the applicable eligible person.
31.17 	(e) However, the current employer or the prior employer may, at its discretion, pay 
31.18 	all or any portion of the payment amount that exceeds an amount equal to the employee 
31.19 	contribution rates in effect during the period or periods of prior service applied to the 
31.20 	actual salary rates in effect during the period or periods of prior service, plus interest at the 
31.21 	rate of 8.5 percent a year compounded annually from the date on which the contributions 
31.22 	would otherwise have been made to the date on which the payment is made. If the 
31.23 	employer agrees to payments under this subdivision, the purchaser must make the 
31.24 	employee payments required under this subdivision within 90 days of the prior service 
31.25 	credit authorization. If that employee payment is made, the employer payment under this 
31.26 	subdivision must be remitted to the chief administrative officer of the public pension plan 
31.27 	within 60 days of receipt by the chief administrative officer of the employee payments 
31.28 	specified under this subdivision.

31.29 	Sec. 16. Minnesota Statutes 2014, section 490.121, subdivision 4, is amended to read:
31.30 		Subd. 4.Allowable service. (a) "Allowable service" means any calendar month, 
31.31 	subject to the service credit limit in subdivision 22, served as a judge at any time, during 
31.32 	which the judge received compensation for that service from the state, municipality, 
31.33 	or county, whichever applies, and for which the judge made any required member 
31.34 	contribution. It also includes any month served as a referee in probate for all referees in 
31.35 	probate who were in office before January 1, 1974.
32.1 	(b) "Allowable service" also means a period of authorized leave of absence for 
32.2 	which the judge has made a payment in lieu of contributions, not in an amount in excess 
32.3 	of the service credit limit under subdivision 22. To obtain the service credit, the judge 
32.4 	shall pay an amount equal to the normal cost of the judges retirement plan on the date of 
32.5 	return from the leave of absence, as determined in the most recent actuarial report for the 
32.6 	plan filed with the Legislative Commission on Pensions and Retirement, multiplied by the 
32.7 	judge's average monthly salary rate during the authorized leave of absence and multiplied 
32.8 	by the number of months of the authorized leave of absence, plus annual compound 
32.9 	interest at the rate of 8.5 percent until June 30, 2015, and eight percent thereafter from 
32.10 	the date of the termination of the leave to the date on which payment is made. The 
32.11 	payment must be made within one year of the date on which the authorized leave of 
32.12 	absence terminated. Service credit for an authorized leave of absence is in addition to a 
32.13 	uniformed service leave under section 490.1211.
32.14 	(c) "Allowable service" does not mean service as a retired judge.

32.15 	Sec. 17. Minnesota Statutes 2014, section 490.1211, is amended to read:
32.16 	490.1211 UNIFORMED SERVICE.
32.17 	(a) A judge who is absent from employment by reason of service in the uniformed 
32.18 	services, as defined in United States Code, title 38, section 4303(13), and who returns 
32.19 	to state employment as a judge upon discharge from service in the uniformed service 
32.20 	within the time frame required in United States Code, title 38, section 4312(e), may obtain 
32.21 	service credit for the period of the uniformed service, provided that the judge did not 
32.22 	separate from uniformed service with a dishonorable or bad conduct discharge or under 
32.23 	other than honorable conditions.
32.24 	(b) The judge may obtain credit by paying into the fund equivalent member 
32.25 	contribution based on the contribution rate or rates in effect at the time that the uniformed 
32.26 	service was performed multiplied by the full and fractional years being purchased and 
32.27 	applied to the annual salary rate. The annual salary rate is the average annual salary 
32.28 	during the purchase period that the judge would have received if the judge had continued 
32.29 	to provide employment services to the state rather than to provide uniformed service, or 
32.30 	if the determination of that rate is not reasonably certain, the annual salary rate is the 
32.31 	judge's average salary rate during the 12-month period of judicial employment rendered 
32.32 	immediately preceding the purchase period.
32.33 	(c) The equivalent employer contribution and, if applicable, the equivalent employer 
32.34 	additional contribution, must be paid by the employing unit, using the employer and 
32.35 	employer additional contribution rate or rates in effect at the time that the uniformed 
33.1 	service was performed, applied to the same annual salary rate or rates used to compute the 
33.2 	equivalent member contribution.
33.3 	(d) If the member equivalent contributions provided for in this section are not paid 
33.4 	in full, the judge's allowable service credit must be prorated by multiplying the full and 
33.5 	fractional number of years of uniformed service eligible for purchase by the ratio obtained 
33.6 	by dividing the total member contributions received by the total member contributions 
33.7 	otherwise required under this section.
33.8 	(e) To receive allowable service credit under this section, the contributions specified 
33.9 	in this section and section 490.121 must be transmitted to the fund during the period 
33.10 	which begins with the date on which the individual returns to judicial employment and 
33.11 	which has a duration of three times the length of the uniformed service period, but not 
33.12 	to exceed five years. If the determined payment period is calculated to be less than one 
33.13 	year, the contributions required under this section to receive service credit may be within 
33.14 	one year from the discharge date.
33.15 	(f) The amount of allowable service credit obtainable under this section and section 
33.16 	490.121 may not exceed five years, unless a longer purchase period is required under 
33.17 	United States Code, title 38, section 4312.
33.18 	(g) The state court administrator shall pay interest on all equivalent member and 
33.19 	employer contribution amounts payable under this section. Interest must be computed 
33.20 	at athe rate of 8.5 percent until June 30, 2015, and eight percent thereafter compounded 
33.21 	annually from the end of each fiscal year of the leave or break in service to the end of 
33.22 	the month in which payment is received.

33.23 	Sec. 18. EFFECTIVE DATE.
 33.24 	Unless otherwise specified, this article is effective July 1, 2015.

33.25 	ARTICLE 4
33.26 	POSTRETIREMENT ADJUSTMENT FINANCIAL SUSTAINABILITY 
33.27 	TRIGGER MODIFICATIONS

33.28 	Section 1. Minnesota Statutes 2014, section 354A.29, subdivision 7, is amended to read:
33.29 		Subd. 7.Eligibility for payment of postretirement adjustments. (a) Annually, 
33.30 	after June 30, the board of trustees of the St. Paul Teachers Retirement Fund Association 
33.31 	must determine the amount of any postretirement adjustment using the procedures in this 
33.32 	subdivision and subdivision 8 or 9, whichever is applicable.
33.33 	(b) On January 1, each eligible person who has been receiving an annuity or benefit 
33.34 	under the articles of incorporation, the bylaws, or this chapter for at least three calendar 
34.1 	months as of the end of the last day of the previous calendar year, whose effective date 
34.2 	of benefit commencement occurred on or before July 1 of the calendar year immediately 
34.3 	before the adjustment, is eligible to receive a postretirement increase as specified in 
34.4 	subdivision 8 or 9.

34.5 	EFFECTIVE DATE. This section is effective June 30, 2015.

34.6 	Sec. 2. Minnesota Statutes 2014, section 354A.29, subdivision 8, is amended to read:
34.7 		Subd. 8.Calculation of postretirement adjustments; transitional provision 
34.8 	percentage based. (a) For purposes of computing postretirement adjustments for eligible 
34.9 	benefit recipients of the St. Paul Teachers Retirement Fund Association, the accrued 
34.10 	liability funding ratio based on the actuarial value of assets of the plan as determined by 
34.11 	the two most recent actuarial valuations prepared under sections 356.214 and 356.215
34.12 	determines the postretirement increase, as follows:

34.13		Funding ratio
	Postretirement increase
	
34.14		Less than 80 percent
	1 percent
	
34.15
34.16		At least 80 percent but less than 90 
percent
	2 percent
	
34.17 	(b) The amount determined under paragraph (a) is the full postretirement increase to 
34.18 	be applied as a permanent increase to the regular payment of each eligible member on 
34.19 	January 1 of the next calendar year. For any eligible member whose effective date of 
34.20 	benefit commencement occurred duringafter January 1 of the calendar year immediately 
34.21 	before the postretirement increase is applied, the full increase amount determined under 
34.22 	paragraph (a) must be prorated on the basis of whole calendar quarters in benefit payment 
34.23 	status in the calendar year prior to the January 1 on which the postretirement increase is 
34.24 	applied, calculated to the third decimal place reduced by 50 percent.
34.25 	(c) If the accrued liability funding ratio based on the actuarial value of assets is at 
34.26 	least 90 percent in two consecutive actuarial valuations, this subdivision expires and 
34.27 	subsequent postretirement increases must be paid as specified in subdivision 9.
34.28 	(d) If, following a postretirement increase under paragraph (a), the accrued liability 
34.29 	funding ratio, based on the actuarial value of assets, falls below 80 percent for two 
34.30 	consecutive actuarial valuations, the applicable postretirement increase must be reduced 
34.31 	to one percent until January 1 of the calendar year next following the date on which the 
34.32 	requirements for an increase under paragraph (a) are again satisfied.

34.33 	EFFECTIVE DATE. This section is effective June 30, 2015.

34.34 	Sec. 3. Minnesota Statutes 2014, section 354A.29, subdivision 9, is amended to read:
35.1 		Subd. 9.Calculation of postretirement adjustments. (a) This subdivision applies 
35.2 	if the requirements of subdivision 8 has expired, paragraph (c), have been satisfied.
35.3 	(b) A percentage adjustment must be computed and paid under this subdivision to 
35.4 	eligible persons under subdivision 7. This adjustment is determined by reference to the 
35.5 	Consumer Price Index for urban wage earners and clerical workers all items index as 
35.6 	reported by the Bureau of Labor Statistics within the United States Department of Labor 
35.7 	each year as part of the determination of annual cost-of-living adjustments to recipients of 
35.8 	federal old-age, survivors, and disability insurance. For calculations of postretirement 
35.9 	adjustments under paragraph (c), the term "average third quarter Consumer Price Index 
35.10 	value" means the sum of the monthly index values as initially reported by the Bureau of 
35.11 	Labor Statistics for the months of July, August, and September, divided by three.
35.12 	(c) Before January 1 of each year, the executive director must calculate the amount 
35.13 	of the postretirement adjustment by dividing the most recent average third quarter index 
35.14 	value by the same average third quarter index value from the previous year, subtract one 
35.15 	from the resulting quotient, and express the result as a percentage amount, which must be 
35.16 	rounded to the nearest one-tenth of one percent.
35.17 	(d)(c) The amount calculated under paragraph (c)of 2.5 percent is the full 
35.18 	postretirement adjustment to be applied as a permanent increase to the regular payment of 
35.19 	each eligible member on January 1 of the next calendar year. For any eligible member 
35.20 	whose effective date of benefit commencement occurred during theafter January 1 
35.21 	of the calendar year immediately before the postretirement adjustment is applied, the 
35.22 	full increasepostretirement adjustment amount must be prorated on the basis of whole 
35.23 	calendar quarters in benefit payment status in the calendar year prior to the January 1 on 
35.24 	which the postretirement adjustment is applied, calculated to the third decimal place 
35.25 	reduced by 50 percent.
35.26 	(e) The adjustment must not be less than zero nor greater than five percent.
35.27 	(d) In the event the accrued liability funding ratio based on the actuarial value of 
35.28 	assets falls below 90 percent for two consecutive actuarial valuations, the applicable 
35.29 	postretirement increase must be determined under subdivision 8 until January 1 of the 
35.30 	calendar year next following the date on which the requirements of subdivision 8, 
35.31 	paragraph (c), are again satisfied.

35.32 	EFFECTIVE DATE. This section is effective June 30, 2015.

35.33 	Sec. 4. Minnesota Statutes 2014, section 356.415, subdivision 1, is amended to read:
35.34 		Subdivision 1.Annual postretirement adjustments; generally. (a) Except as 
35.35 	otherwise provided in subdivision 1a, 1b, 1c, 1d, 1e, or 1f, retirement annuity, disability 
36.1 	benefit, or survivor benefit recipients of a covered retirement plan are entitled to a 
36.2 	postretirement adjustment annually on January 1, as follows:
36.3 	(1) a postretirement increase of 2.5 percent must be applied each year, effective 
36.4 	January 1, to the monthly annuity or benefit of each annuitant or benefit recipient who 
36.5 	has been receiving an annuity or a benefit for at least 12 full months prior to the January 
36.6 	1 increase as of the current June 30; and
36.7 	(2) for each annuitant or benefit recipient who has been receiving an annuity or a 
36.8 	benefit amount for at least one full month, but less than 12 full months as of the current 
36.9 	June 30, an annual postretirement increase of 1/12 of 2.5 percent for each month that the 
36.10 	person has been receiving an annuity or benefit must be applied, effective on January 1 
36.11 	following the calendar year in which the person has been retired for less than 12 months.
36.12 	(b) The increases provided by this subdivision commence on January 1, 2010.
36.13 	(c) An increase in annuity or benefit payments under this section must be made 
36.14 	automatically unless written notice is filed by the annuitant or benefit recipient with the 
36.15 	executive director of the covered retirement plan requesting that the increase not be made.

36.16 	EFFECTIVE DATE. This section is effective June 30, 2015.

36.17 	Sec. 5. Minnesota Statutes 2014, section 356.415, subdivision 1a, is amended to read:
36.18 		Subd. 1a.Annual postretirement adjustments; Minnesota State Retirement 
36.19 	System plans other than State Patrol retirement plan. (a) Retirement annuity, disability 
36.20 	benefit, or survivor benefit recipients of the legislators retirement plans, including 
36.21 	constitutional officers as specified in chapter 3A, the general state employees retirement 
36.22 	plan, the correctional state employees retirement plan, and the unclassified state employees 
36.23 	retirement program, and the judges retirement plan are entitled to a postretirement 
36.24 	adjustment annually on January 1, as follows:
36.25 	(1) for each successive January 1, if the definition of funding stability under 
36.26 	paragraph (b) has not been met as of the prior July 1 for or with respect to the applicable 
36.27 	retirement plan, a postretirement increase of two percent must be applied each year, 
36.28 	effective on January 1, to the monthly annuity or benefit of each annuitant or benefit 
36.29 	recipient who has been receiving an annuity or a benefit for at least 18 full months before 
36.30 	the January 1 increase as of the current June 30; and
36.31 	(2) for each successive January 1, if the definition of funding stability under 
36.32 	paragraph (b) has not been met as of the prior July 1 for or with respect to the applicable 
36.33 	retirement plan, for each annuitant or benefit recipient who has been receiving an annuity 
36.34 	or a benefit for at least sixone full month, but less than 12 full months as of the current 
36.35 	June 30, an annual postretirement increase of 1/12 of two percent for each month that the 
37.1 	person has been receiving an annuity or benefit must be applied, effective January 1, 
37.2 	following the calendar year in which the person has been retired for at least six months, 
37.3 	but has been retired for less than 18 months.
37.4 	(b) The increases provided by this subdivision commence on January 1, 2011. 
37.5 	Increases under this subdivision for the general state employees retirement plan,or the 
37.6 	correctional state employees retirement plan, or the judges retirement plan terminate on 
37.7 	December 31 of the calendar year in which two prior consecutive actuarial valuations 
37.8 	prepared by the approved actuary under sections 356.214 and 356.215 and the standards for 
37.9 	actuarial work promulgated by the Legislative Commission on Pensions and Retirement 
37.10 	indicates that the market value of assets of the retirement plan equals or exceeds 90 percent 
37.11 	of the actuarial accrued liability of the retirement plan and increases under subdivision 1 
37.12 	recommence after that date. Increases under this subdivision for the legislators retirement 
37.13 	plan or the elected state officers retirement plan, including the constitutional officers, and 
37.14 	for the unclassified state employees retirement program, terminate on December 31 of the 
37.15 	calendar year in which thetwo prior consecutive actuarial valuationvaluations prepared 
37.16 	by the approved actuary under sections 356.214 and 356.215 and the standards for 
37.17 	actuarial work promulgated by the Legislative Commission on Pensions and Retirement 
37.18 	indicates that the market value of assets of the general state employees retirement plan 
37.19 	equals or exceeds 90 percent of the actuarial accrued liability of the retirement plan and 
37.20 	increases under subdivision 1 recommence after that date.
37.21 	(c) After having met the definition of funding stability under paragraph (b), the 
37.22 	increase provided in paragraph (a), clauses (1) and (2), rather than an increase under 
37.23 	subdivision 1, for the general state employees retirement plan or the correctional state 
37.24 	employees retirement plan, is again to be applied in a subsequent year or years if the 
37.25 	market value of assets of the applicable plan equals or is less than:
37.26 	(1) 85 percent of the actuarial accrued liabilities of the applicable plan for two 
37.27 	consecutive actuarial valuations; or
37.28 	(2) 80 percent of the actuarial accrued liabilities of the applicable plan for the most 
37.29 	recent actuarial valuation.
37.30 	(d) After having met the definition of funding stability under paragraph (b), the 
37.31 	increase provided in paragraph (a), clauses (1) and (2), rather than an increase under 
37.32 	subdivision 1, for the legislators retirement plan, including the constitutional officers, 
37.33 	and for the unclassified state employees retirement program, is again to be applied in a 
37.34 	subsequent year or years if the market value of assets of the general state employees 
37.35 	retirement plan equals or is less than:
38.1 	(1) 85 percent of the actuarial accrued liabilities of the applicable plan for two 
38.2 	consecutive actuarial valuations; or
38.3 	(2) 80 percent of the actuarial accrued liabilities of the applicable plan for the most 
38.4 	recent actuarial valuation.
38.5 	(c)(e) An increase in annuity or benefit payments under this subdivision must be 
38.6 	made automatically unless written notice is filed by the annuitant or benefit recipient 
38.7 	with the executive director of the applicable covered retirement plan requesting that the 
38.8 	increase not be made.

38.9 	EFFECTIVE DATE. This section is effective June 30, 2015.

38.10 	Sec. 6. Minnesota Statutes 2014, section 356.415, subdivision 1c, is amended to read:
38.11 		Subd. 1c.Annual postretirement adjustments; PERA-police and fire. (a) 
38.12 	Retirement annuity, disability benefit, or survivor benefit recipients of the public 
38.13 	employees police and fire retirement plan are entitled to a postretirement adjustment 
38.14 	annually on January 1, untilif the definition of funding stability is restored under 
38.15 	paragraph (c) has not been met, as follows:
38.16 	(1) for each annuitant or benefit recipient whose annuity or benefit effective date is 
38.17 	on or before June 1, 2014, who has been receiving the annuity or benefit for at least 12 
38.18 	full months as of the immediate preceding June 30, an amount equal to one percent in 
38.19 	each year; or
38.20 	(2) for each annuitant or benefit recipient whose annuity or benefit effective date 
38.21 	is on or before June 1, 2014, who has been receiving the annuity or benefit for at least 
38.22 	one full month, but not less than 1112 months, as of the immediate preceding June 30, an 
38.23 	amount equal to 1/12 of one percent for each month of annuity or benefit receipt; and
38.24 	(3) for each annuitant or benefit recipient whose annuity or benefit effective date is 
38.25 	after June 1, 2014, unless Laws 2014, chapter 296, article 13, section 27, applies, who will 
38.26 	have been receiving an annuity or benefit for at least 36 full months as of the immediate 
38.27 	preceding June 30, an amount equal to one percent; or
38.28 	(4) for each annuitant or benefit recipient whose annuity or benefit effective date is 
38.29 	after June 1, 2014, unless Laws 2014, chapter 296, article 13, section 27, applies, who 
38.30 	has been receiving the annuity or benefit for at least 25 full months, but less than 36 
38.31 	months as of the immediate preceding June 30, an amount equal to 1/12 of one percent for 
38.32 	each full month of annuity or benefit receipt during the fiscal year in which the annuity 
38.33 	or benefit was effective.
38.34 	(b) Retirement annuity, disability benefit, or survivor benefit recipients of the public 
38.35 	employees police and fire retirement plan are entitled to a postretirement adjustment 
39.1 	annually on each January 1 following the restoration of funding stability as defined under 
39.2 	paragraph (c) and during the continuation of funding stability as defined under paragraph 
39.3 	(c), as follows:
39.4 	(1) for each annuitant or benefit recipient who has been receiving the annuity or 
39.5 	benefit for at least 36 full months as of the immediate preceding June 30, an amount 
39.6 	equal to the percentage increase in the Consumer Price Index for urban wage earners and 
39.7 	clerical workers all items index published by the Bureau of Labor Statistics of the United 
39.8 	States Department of Labor between the immediate preceding June 30 and the June 30 
39.9 	occurring 12 months previous, but not to exceed 2.5 percent; and
39.10 	(2) for each annuitant or benefit recipient who has been receiving the annuity 
39.11 	or benefit for at least 25 full months, but less than 36 full months, as of the immediate 
39.12 	preceding June 30, an amount equal to 1/12 of the percentage increase in the Consumer 
39.13 	Price Index for urban wage earners and clerical workers all items index published by 
39.14 	the Bureau of Labor Statistics of the United States Department of Labor between the 
39.15 	immediate preceding June 30 and the June 30 occurring 12 months previous for each full 
39.16 	month of annuity or benefit receipt during the fiscal year in which the annuity or benefit 
39.17 	was effective, but not to exceed 1/12 of 2.5 percent for each full month of annuity or 
39.18 	benefit receipt during the fiscal year in which the annuity or benefit was effective.
39.19 	(c) Funding stability is restored when the market value of assets of the public 
39.20 	employees police and fire retirement plan equals or exceeds 90 percent of the actuarial 
39.21 	accrued liabilities of the applicable plan in the two most recent consecutive actuarial 
39.22 	valuations prepared under section 356.215 and under the standards for actuarial work of 
39.23 	the Legislative Commission on Pensions and Retirement by the approved actuary retained 
39.24 	by the Public Employees Retirement Association under section 356.214.
39.25 	(d) After having met the definition of funding stability under paragraph (c), a full 
39.26 	or prorated increase, as provided in paragraph (a), clause (1), (2), (3), or (4), whichever 
39.27 	applies, rather than adjustments under paragraph (b), is again applied in a subsequent year 
39.28 	or years if the market value of assets of the public employees police and fire retirement 
39.29 	plan equals or is less than:
39.30 	(1) 85 percent of the actuarial accrued liabilities of the applicable plan for two 
39.31 	consecutive actuarial valuations; or
39.32 	(2) 80 percent of the actuarial accrued liabilities of the applicable plan for the most 
39.33 	recent actuarial valuation.
39.34 	(e) An increase in annuity or benefit payments under this section must be made 
39.35 	automatically unless written notice is filed by the annuitant or benefit recipient with the 
40.1 	executive director of the Public Employees Retirement Association requesting that the 
40.2 	increase not be made.

40.3 	EFFECTIVE DATE. This section is effective June 30, 2015.

40.4 	Sec. 7. Minnesota Statutes 2014, section 356.415, subdivision 1d, is amended to read:
40.5 		Subd. 1d.Teachers Retirement Association annual postretirement adjustments.
 40.6 	(a) Retirement annuity, disability benefit, or survivor benefit recipients of the Teachers 
40.7 	Retirement Association are entitled to a postretirement adjustment annually on January 
40.8 	1, as follows:
40.9 	(1) for January 1, 2011, and January 1, 2012, no postretirement increase is payable;
40.10 	(2) (1) for January 1, 2013, and each successive January 1 until funding stability is 
40.11 	restored, a postretirement increase of two percent must be applied each year, effective on 
40.12 	January 1, to the monthly annuity or benefit amount of each annuitant or benefit recipient 
40.13 	who has been receiving an annuity or a benefit for at least 1812 full months prior to the 
40.14 	January 1 increase as of the current June 30;
40.15 	(3)(2) for January 1, 2013, and each successive January 1 until funding stability 
40.16 	is restored, for each annuitant or benefit recipient who has been receiving an annuity or 
40.17 	a benefit for at least sixone full month, but less than 12 full months before the January 
40.18 	1 increase as of the current June 30, an annual postretirement increase of 1/12 of two 
40.19 	percent for each month the person has been receiving an annuity or benefit must be 
40.20 	applied, effective January 1, for which the person has been retired for at least six months 
40.21 	but less than 18 months;
40.22 	(4)(3) for each January 1 following the restoration of funding stability, a 
40.23 	postretirement increase of 2.5 percent must be applied each year, effective January 1, to 
40.24 	the monthly annuity or benefit amount of each annuitant or benefit recipient who has 
40.25 	been receiving an annuity or a benefit for at least 1812 full months prior to the January 
40.26 	1 increase as of the current June 30; and
40.27 	(5)(4) for each January 1 following the restoration of funding stability, for each 
40.28 	annuitant or benefit recipient who has been receiving an annuity or a benefit for at least six 
40.29 	one month, but less than 12 full months before the January 1 increase as of the current 
40.30 	June 30, an annual postretirement increase of 1/12 of 2.5 percent for each month the 
40.31 	person has been receiving an annuity or benefit must be applied, effective January 1, for 
40.32 	which the person has been retired for at least six months but less than 18 months.
40.33 	(b) Funding stability is restored when the market value of assets of the Teachers 
40.34 	Retirement Association equals or exceeds 90 percent of the actuarial accrued liabilities 
40.35 	of the Teachers Retirement Association in the two most recent prior actuarial valuations 
41.1 	prepared under section 356.215 and the standards for actuarial work by the approved 
41.2 	actuary retained by the Teachers Retirement Association under section 356.214.
41.3 	(c) After having met the definition of funding stability under paragraph (b), the 
41.4 	increase provided in paragraph (a), clauses (1) and (2), rather than an increase under 
41.5 	subdivision 1, or the increase under paragraph (a), clauses (3) and (4), is again to be applied 
41.6 	in a subsequent year or years if the market value of assets of the plan equals or is less than:
41.7 	(1) 85 percent of the actuarial accrued liabilities of the plan for two consecutive 
41.8 	actuarial valuations; or
41.9 	(2) 80 percent of the actuarial accrued liabilities of the plan for the most recent 
41.10 	actuarial valuation.
41.11 	(c)(d) An increase in annuity or benefit payments under this section must be made 
41.12 	automatically unless written notice is filed by the annuitant or benefit recipient with the 
41.13 	executive director of the Teachers Retirement Association requesting that the increase 
41.14 	not be made.
41.15 	(d)(e) The retirement annuity payable to a person who retires before becoming 
41.16 	eligible for Social Security benefits and who has elected the optional payment as provided 
41.17 	in section 354.35 must be treated as the sum of a period-certain retirement annuity 
41.18 	and a life retirement annuity for the purposes of any postretirement adjustment. The 
41.19 	period-certain retirement annuity plus the life retirement annuity must be the annuity 
41.20 	amount payable until age 62, 65, or normal retirement age, as selected by the member 
41.21 	at retirement, for an annuity amount payable under section 354.35. A postretirement 
41.22 	adjustment granted on the period-certain retirement annuity must terminate when the 
41.23 	period-certain retirement annuity terminates.

41.24 	EFFECTIVE DATE. This section is effective June 30, 2015.

41.25 	Sec. 8. Minnesota Statutes 2014, section 356.415, subdivision 1e, is amended to read:
41.26 		Subd. 1e.Annual postretirement adjustments; State Patrol retirement plan.
 41.27 	(a) Retirement annuity, disability benefit, or survivor benefit recipients of the State Patrol 
41.28 	retirement plan are entitled to a postretirement adjustment annually on January 1 if the 
41.29 	definition of funding stability under paragraph (b) has not been met, as follows:
41.30 	(1) a postretirement increase of one percent must be applied each year, effective on 
41.31 	January 1, to the monthly annuity or benefit of each annuitant or benefit recipient who has 
41.32 	been receiving an annuity or a benefit for at least 1812 full months before the January 
41.33 	1 increase as of the current June 30; and
41.34 	(2) for each annuitant or benefit recipient who has been receiving an annuity or a 
41.35 	benefit for at least sixone full month, but less than 12 full months as of the current June 
42.1 	30, an annual postretirement increase of 1/12 of one percent for each month that the 
42.2 	person has been receiving an annuity or benefit must be applied, effective January 1, 
42.3 	following the calendar year in which the person has been retired for at least six months, 
42.4 	but has been retired for less than 18 months.
42.5 	(b) The increases provided by this subdivision commence on January 1, 2014. 
42.6 	Increases under paragraph (a) for the State Patrol retirement plan terminate on December 
42.7 	31 of the calendar year in which two prior consecutive actuarial valuations for the 
42.8 	plan prepared by the approved actuary under sections 356.214 and 356.215 and the 
42.9 	standards for actuarial work promulgated by the Legislative Commission on Pensions 
42.10 	and Retirement indicates that the market value of assets of the retirement plan equals or 
42.11 	exceeds 85 percent of the actuarial accrued liability of the retirement plan. Thereafter, 
42.12 	increases under paragraph (a) become effective again on the December 31 of the calendar 
42.13 	year in which the actuarial valuation, or prior consecutive actuarial valuations for the 
42.14 	plan prepared by the approved actuary under sections 356.214 and 356.215 and the 
42.15 	standards for actuarial work promulgated by the Legislative Commission on Pensions and 
42.16 	Retirement indicates that the market value of the assets of the retirement plan equals or is 
42.17 	less than 80 percent of the actuarial accrued liability of the retirement plan for two years, 
42.18 	or equals or is less than 75 percent of the actuarial accrued liability of the retirement plan 
42.19 	for one year  and increases under paragraph (c) recommencecommence after that date.
42.20 	(c) Retirement annuity, disability benefit, or survivor benefit recipients of the State 
42.21 	Patrol retirement plan are entitled to a postretirement adjustment annually on January 
42.22 	1, as follows:
42.23 	(1) a postretirement increase of 1.5 percent must be applied each year, effective on 
42.24 	January 1, to the monthly annuity or benefit of each annuitant or benefit recipient who has 
42.25 	been receiving an annuity or a benefit for at least 1812 full months before the January 
42.26 	1 increase as of the current June 30; and
42.27 	(2) for each annuitant or benefit recipient who has been receiving an annuity or a 
42.28 	benefit for at least sixone full month, but less than 12 full months as of the current June 
42.29 	30, an annual postretirement increase of 1/12 of 1.5 percent for each month that the person 
42.30 	has been receiving an annuity or benefit must be applied, effective January 1, following 
42.31 	the calendar year in which the person has been retired for at least six months, but has been 
42.32 	retired for less than 18 months.
42.33 	(d) Increases under paragraph (c) for the State Patrol retirement plan terminate on 
42.34 	December 31 of the calendar year in which two prior consecutive actuarial valuations 
42.35 	prepared by the approved actuary under sections 356.214 and 356.215 and the standards 
42.36 	for actuarial work adopted by the Legislative Commission on Pensions and Retirement 
43.1 	indicates that the market value of assets of the retirement plan equals or exceeds 90 
43.2 	percent of the actuarial accrued liability of the retirement plan and increases under 
43.3 	subdivision 1 recommence after that date.
43.4 	(e) An increase in annuity or benefit payments under this subdivision must be made 
43.5 	automatically unless written notice is filed by the annuitant or benefit recipient with the 
43.6 	executive director of the applicable covered retirement plan requesting that the increase 
43.7 	not be made.

43.8 	EFFECTIVE DATE. This section is effective June 30, 2015.

43.9 	Sec. 9. Minnesota Statutes 2014, section 356.415, subdivision 1f, is amended to read:
43.10 		Subd. 1f.Annual postretirement adjustments; Minnesota State Retirement 
43.11 	System judges retirement plan. (a) The increases provided under this subdivision begin 
43.12 	on January 1, 2014, and are in lieu of increases under subdivision 1 or 1a for retirement 
43.13 	annuity, disability benefit, or survivor benefit recipients of the judges retirement plan.
43.14 	(b) Retirement annuity, disability benefit, or survivor benefit recipients of the 
43.15 	judges retirement plan are entitled to a postretirement adjustment annually on January 
43.16 	1, as follows:
43.17 	(1) a postretirement increase of 1.75 percent must be applied each year, effective on 
43.18 	January 1, to the monthly annuity or benefit of each annuitant or benefit recipient who has 
43.19 	been receiving an annuity or a benefit for at least 1812 full months before the January 
43.20 	1 increase as of the current June 30; and
43.21 	(2) for each annuitant or benefit recipient who has been receiving an annuity or a 
43.22 	benefit for at least sixone full month, but less than 12 full months as of the current June 
43.23 	30, an annual postretirement increase of 1/12 of 1.75 percent for each month that the 
43.24 	person has been receiving an annuity or benefit must be applied, effective January 1, 
43.25 	following the calendar year in which the person has been retired for at least six months, 
43.26 	but has been retired for less than 18 months.
43.27 	(c) Increases under this subdivision terminate on December 31 of the calendar year 
43.28 	in which two prior consecutive actuarial valuations prepared by the approved actuary 
43.29 	under sections 356.214 and 356.215 and the standards for actuarial work promulgated 
43.30 	by the Legislative Commission on Pensions and Retirement indicates that the market 
43.31 	value of assets of the judges retirement plan equals or exceeds 70 percent of the actuarial 
43.32 	accrued liability of the retirement plan. Increases under subdivision 1 or 1a, whichever is 
43.33 	applicable, begin on the January 1 next following that date.
43.34 	(d) An increase in annuity or benefit payments under this subdivision must be made 
43.35 	automatically unless written notice is filed by the annuitant or benefit recipient with the 
44.1 	executive director of the applicable covered retirement plan requesting that the increase 
44.2 	not be made.

44.3 	EFFECTIVE DATE. This section is effective June 30, 2015.

44.4 	Sec. 10.  REPEALER.
 44.5 	Minnesota Statutes 2014, section 354A.42, is repealed.

44.6 	EFFECTIVE DATE. This section is effective June 30, 2015.

44.7 	ARTICLE 5
44.8 	CONTRIBUTION STABILIZER PROVISION MODIFICATIONS

44.9 	Section 1. Minnesota Statutes 2014, section 352.045, is amended to read:
44.10 	352.045 PROCEDURE FOR REVISING EMPLOYEE AND EMPLOYER 
44.11 	CONTRIBUTIONS IN CERTAIN INSTANCES.
44.12 		Subdivision 1.Application. This section applies to the general state employees 
44.13 	retirement plan and to established under this chapter, the correctional state employees 
44.14 	retirement plan established under this chapter, and to the state patrol retirement plan 
44.15 	established under chapter 352B.
44.16 		Subd. 2.Determination. For purposes of this section, a contribution sufficiency 
44.17 	exists if, for purposes of the applicable plan, the total of the employee contributions, the 
44.18 	employer contributions, and any additional employer contributions, if applicable, exceeds 
44.19 	the total of the normal cost, the administrative expenses, and the amortization contribution 
44.20 	of the retirement plan as reported in the most recent actuarial valuation of the retirement 
44.21 	plan prepared by the approved actuary retained under section 356.214 and prepared under 
44.22 	section 356.215 and the standards for actuarial work of the Legislative Commission on 
44.23 	Pensions and Retirement. For purposes of this section, a contribution deficiency exists 
44.24 	if, for the applicable plan, the total employee contributions, employer contributions, 
44.25 	and any additional employer contributions are less than the total of the normal cost, the 
44.26 	administrative expenses, and the amortization contribution of the retirement plan as 
44.27 	reported in the most recent actuarial valuation of the retirement plan prepared by the 
44.28 	approved actuary retained under section 356.214 and prepared under section 356.215 and 
44.29 	the standards for actuarial work of the Legislative Commission on Pensions and Retirement.
44.30 		Subd. 3a.Contribution rate revision; general state employees retirement plan.
 44.31 	(a) Notwithstanding the contribution rates stated in plan law as specified in law governing 
44.32 	the applicable retirement plan, the board of directors of the Minnesota State Retirement 
45.1 	System may adjust the employee and employer contribution rates for the general state 
45.2 	employees retirement plan must be adjusted:
45.3 	(1) if the regular actuarial valuation of the plan prepared under section 356.215
45.4 	indicates that there is a contribution sufficiency greater than one percent of covered payroll 
45.5 	and that the sufficiency has existed for at least two consecutive years, the employee and 
45.6 	employer contribution rates must be decreased as determined under paragraph (b) to a 
45.7 	level such that the sufficiency is no greater than one percent of covered payroll based 
45.8 	on the most recent actuarial valuation; or
45.9 	(2) if the regular actuarial valuation of the plan under section 356.215 indicates that 
45.10 	there is a contribution deficiency under subdivision 2 equal to or greater than 0.5one-half 
45.11 	of one percent of covered payroll and that the deficiency has existed for at least two 
45.12 	consecutive years, the employee and employer contribution rates must be increased as 
45.13 	determined under paragraph (c) to a level such that no deficiency exists based on the 
45.14 	most recent actuarial valuation.
45.15 	(b) If the actuarially requireddetermined contribution of the plan is less than the 
45.16 	total support provided by the combined employee and employer contribution rates by 
45.17 	more than one percent of covered payroll, the plan employee and employer contribution 
45.18 	rates mustmay be decreased incrementally over one or more years by no more than 
45.19 	0.25 percent of pay each for employee and employer contribution rates to a level such 
45.20 	that there remains a contribution sufficiency of at least one percent of covered payroll. 
45.21 	No contribution rateAny decrease may be made until at least two years have elapsed 
45.22 	since any adjustment under this paragraph has been fully implemented in employee and 
45.23 	employer contribution rates must not result in total contributions that are less than the sum 
45.24 	of the normal cost and administrative expenses of the retirement plan.
45.25 	(c) If the actuarially required contribution exceeds the total support provided by 
45.26 	the employee and employer contribution rates, the board of directors may increase the 
45.27 	employee and employer contribution rates must be increased equally to eliminate that 
45.28 	contribution deficiency. If the contribution deficiency is:
45.29 	(1) less than two percent, the incremental increase may be up to 0.25 percent each 
45.30 	for the employee and employer contribution rates;
45.31 	(2) greater than 1.99 percent and less than 4.01 percent, the incremental increase 
45.32 	may be up to 0.5 percent each for the employee and employer contribution rates; or
45.33 	(3) greater than four percent, the incremental increase may be up to 0.75 percent 
45.34 	each for the employee and employer contribution.
45.35 	(d) To determine if an adjustment is to be made, the board of directors shall consult 
45.36 	with the approved actuary retained under section 356.214 and shall take into consideration 
46.1 	factors that include, but are not limited to, the contribution rates calculated based on the 
46.2 	actuarial value of assets and calculated based on the market value of assets; the funded 
46.3 	ratio calculated based on the actuarial value of assets; the funded ratio calculated based on 
46.4 	the market value of assets; the remaining number of years to the amortization target date; 
46.5 	the recent experience of the investment markets; and the results of the 30-year funding, 
46.6 	disbursements, and contribution projections prepared every other year as required under 
46.7 	the standards for actuarial work adopted by the Legislative Commission on Pensions 
46.8 	and Retirement.
46.9 	(e) Any recommended adjustment to the contribution rates must be reported to 
46.10 	the chair and the executive director of the Legislative Commission on Pensions and 
46.11 	Retirement by January 15 following receipt of the most recent annual actuarial valuation 
46.12 	prepared under section 356.215. The report must include draft legislation to revise the 
46.13 	employee and employer contributions stated in plan law. If the Legislative Commission 
46.14 	on Pensions and Retirement does not recommend against the rate change or does not 
46.15 	recommend a modification in the rate change, the recommended adjustment becomes 
46.16 	effective on the first day of the first full payroll period in the fiscal year following receipt 
46.17 	of the most recent actuarial valuation that gave rise to the adjustment.
46.18 	(e)(f) A contribution sufficiency of up to one percent of covered payroll must be 
46.19 	held in reserve to be used to offset any future actuarially requireddetermined contributions 
46.20 	that are more than the total combined employee and employer contributions.
46.21 	(f)(g) Before any reduction in contributions to eliminate a sufficiency in excess of 
46.22 	one percent of covered pay may be recommended made, the executive director must 
46.23 	review any need for a change in actuarial assumptions, as recommended by the approved 
46.24 	actuary retained under section 356.214 in the most recent experience study of the general 
46.25 	employees retirement plan prepared under section 356.215 and the standards for actuarial 
46.26 	work promulgated by the Legislative Commission on Pensions and Retirement that may 
46.27 	result in an increase in the actuarially requireddetermined contribution and must report to 
46.28 	the Legislative Commission on Pensions and Retirement any recommendationdecision 
46.29 	by the board to use the sufficiency exceeding one percent of covered payroll to offset the 
46.30 	impact of an actuarial assumption change recommended by the actuary retained under 
46.31 	section 356.214, subdivision 1, and reviewed by the actuary retained by the commission 
46.32 	under section 356.214, subdivision 4.
46.33 	(g)(h) No contribution sufficiency in excess of one percent of covered pay may be 
46.34 	proposed to be used to increase benefits, and no benefit increase may be proposed that 
46.35 	would initiate an automatic adjustment to increase contributions under this subdivision. 
46.36 	Any proposed benefit improvement must include a recommendation, prepared by the 
47.1 	approved actuary retained under section 356.214, subdivision 1, and reviewed by the 
47.2 	actuary retained by the Legislative Commission on Pensions and Retirement as provided 
47.3 	under section 356.214, subdivision 4, on how the benefit modification will be funded.
47.4 		Subd. 3b.Contribution rate revision; correctional state employees retirement 
47.5 	plan and State Patrol retirement plan. (a) Subdivision 3a applies to the correctional 
47.6 	state employees retirement plan under this chapter and to the State Patrol retirement 
47.7 	plan established under chapter 352B, except as stated in this subdivision specified in 
47.8 	paragraph (b) or (c).
47.9 	(b) Any limitations on the amount of contribution rate changes stated in subdivision 
47.10 	3a apply only to the amount of the employee contribution revision. The employer 
47.11 	contribution for the correctional state employees retirement plan or the State Patrol 
47.12 	retirement plan, whichever is applicable, must be adjusted so that the employer 
47.13 	contribution is equal to 60 percent of the sum of employee plus employer contributions.
47.14 	(c) For the State Patrol retirement plan, a contribution sufficiency of up to two 
47.15 	percent of covered payroll, rather than one percent, may be held in reserves without taking 
47.16 	action to reduce employee and employer contributions.

47.17 	Sec. 2. Minnesota Statutes 2014, section 353.27, subdivision 3b, is amended to read:
47.18 		Subd. 3b.Change in employee and employer contributions in certain instances.
 47.19 	(a) For purposes of this section:
47.20 	(1) a contribution sufficiency exists if the total of the employee contribution under 
47.21 	subdivision 2, the employer contribution under subdivision 3, the additional employer 
47.22 	contribution under subdivision 3a, and any additional contribution previously imposed 
47.23 	under this subdivision exceeds the total of the normal cost, the administrative expenses, 
47.24 	and the amortization contribution of the general employees retirement plan as reported in 
47.25 	the most recent actuarial valuation of the retirement plan prepared by the actuary retained 
47.26 	under section 356.214 and prepared under section 356.215 and the standards for actuarial 
47.27 	work of the Legislative Commission on Pensions and Retirement; and
47.28 	(2) a contribution deficiency exists if the total of the employee contributions under 
47.29 	subdivision 2, the employer contributions under subdivision 3, the additional employer 
47.30 	contribution under subdivision 3a, and any additional contribution previously imposed 
47.31 	under this subdivision is less than the total of the normal cost, the administrative expenses, 
47.32 	and the amortization contribution of the general employees retirement plan as reported in 
47.33 	the most recent actuarial valuation of the retirement plan prepared by the actuary retained 
47.34 	under section 356.214 and prepared under section 356.215 and the standards for actuarial 
47.35 	work of the Legislative Commission on Pensions and Retirement.
48.1 	(b) Notwithstanding the contribution rate provision specified under subdivisions 2, 
48.2 	3, and 3a, the board of trustees of the Public Employees Retirement Association may 
48.3 	adjust the employee and employer contributions to the general employees retirement plan 
48.4 	under subdivisions 2 and 3 must be adjusted:
48.5 	(1) if the regular actuarial valuation of the general employees retirement plan of 
48.6 	the Public Employees Retirement Association prepared under section 356.215 indicates 
48.7 	that there is a contribution sufficiency under paragraph (a) greater than one percent of 
48.8 	covered payroll and that the sufficiency has existed for at least two consecutive years, the 
48.9 	coordinated program employee and employer contribution rates must be decreased as 
48.10 	determined under paragraph (c) to a level such that the sufficiency is no greater than one 
48.11 	percent of covered payroll based on the most recent actuarial valuation; or 
48.12 	(2) if the regular actuarial valuation of the general employees retirement plan of the 
48.13 	Public Employees Retirement Association under section 356.215 indicates that there 
48.14 	is a contribution deficiency under paragraph (a) equal to or greater than 0.5one-half 
48.15 	of one percent of covered payroll and that the deficiency has existed for at least two 
48.16 	consecutive years, the coordinated program employee and employer contribution rates 
48.17 	must be increased as determined under paragraph (d) to a level such that no deficiency 
48.18 	exists based on the most recent actuarial valuation.
48.19 	(c) If the actuarially requireddetermined contribution of the general employees 
48.20 	retirement plan is less than the total support provided by the combined employee and 
48.21 	employer contribution rates under subdivisions 2, 3, and 3a, by more than one percent of 
48.22 	covered payroll, the general employees retirement plan coordinated program employee 
48.23 	and employer contribution rates under subdivisions 2 and 3 mustmay be decreased 
48.24 	incrementally over one or more years by no more than 0.25 percent of pay each for 
48.25 	employee and employer matching contribution rates to a level such that there remains a 
48.26 	contribution sufficiency of at least one percent of covered payroll. No contribution rate 
48.27 	decrease may be made until at least two years have elapsed since any adjustment under 
48.28 	this subdivision has been fully implemented. Any decrease in employee and employer 
48.29 	contribution rates must not result in total contributions that are less than the total of the 
48.30 	normal cost of the retirement plan and the administrative expenses of the retirement plan.
48.31 	(d) If the actuarially requireddetermined contribution exceeds the total support 
48.32 	provided by the combined employee and employer contribution rates under subdivisions 
48.33 	2, 3, and 3a, the board of trustees may increase the employee and matching employer 
48.34 	contribution rates must be increased equally to eliminate that contribution deficiency. 
48.35 	If the contribution deficiency is:
49.1 	(1) less than two percent, the incremental increase may be up to 0.25 percent for the 
49.2 	general employees retirement plan employee and matching employer contribution rates;
49.3 	(2) greater than 1.99 percent and less than 4.01 percent, the incremental increase 
49.4 	may be up to 0.5 percent for the employee and matching employer contribution rates; or
49.5 	(3) greater than four percent, the incremental increase may be up to 0.75 percent for 
49.6 	the employee and matching employer contribution.
49.7 	(e) The general employees retirement plan contribution sufficiency or deficiency 
49.8 	determination under paragraphs (a) to (d) must be made without the inclusion of the 
49.9 	contributions to, the funded condition of, or the actuarial funding requirements of the 
49.10 	MERF division. To determine if an adjustment is to be made, the board of trustees shall 
49.11 	consult with the approved actuary retained under section 356.214 and shall take into 
49.12 	consideration factors that include, but are not limited to, the contribution rates based on 
49.13 	actuarial value of assets and contribution rates based on the market value of assets; the 
49.14 	funded ratio based on the actuarial value of assets and based on the market value of assets; 
49.15 	the number of years remaining to the amortization target date; the recent experience 
49.16 	of the investment markets; and the results of the 30-year funding, disbursements, and 
49.17 	contributions projections prepared every other year as required under the standards for 
49.18 	actuarial work adopted by the Legislative Commission on Pensions and Retirement.
49.19 	(f) Any recommended adjustment to the contribution rates must be reported to 
49.20 	the chair and the executive director of the Legislative Commission on Pensions and 
49.21 	Retirement by January 15 following the receipt of the most recent annual actuarial 
49.22 	valuation prepared under section 356.215. If the Legislative Commission on Pensions 
49.23 	and Retirement does not recommend against the rate change or does not recommend 
49.24 	a modification in the rate change, the recommended adjustment becomes effective for 
49.25 	any salary paid on or after the January 1 next following the legislative session in which 
49.26 	the Legislative Commission on Pensions and Retirement did not take any action to 
49.27 	disapprove or modify the Public Employees Retirement Association Board of Trustees' 
49.28 	recommendation to adjustadjustment to the employee and employer rates.
49.29 	(g) A contribution sufficiency of up to one percent of covered payroll must be held 
49.30 	in reserve to be used to offset any future actuarially requireddetermined contributions 
49.31 	that are more than the total combined employee and employer contributions under 
49.32 	subdivisions 2, 3, and 3a.
49.33 	(h) Before any reduction in contributions to eliminate a sufficiency in excess of one 
49.34 	percent of covered pay may be recommended made, the executive director must review 
49.35 	any need for a change in actuarial assumptions, as recommended by the actuary retained 
49.36 	under section 356.214 in the most recent experience study of the general employees 
50.1 	retirement plan prepared under section 356.215 and the standards for actuarial work 
50.2 	promulgated by the Legislative Commission on Pensions and Retirement that may result 
50.3 	in an increase in the actuarially requireddetermined contribution and must report to the 
50.4 	Legislative Commission on Pensions and Retirement any recommendationdecision by the 
50.5 	board to use the sufficiency exceeding one percent of covered payroll to offset the impact 
50.6 	of an actuarial assumption change recommended by the actuary retained under section 
50.7 	356.214, subdivision 1, and reviewed by the actuary retained by the commission under 
50.8 	section 356.214, subdivision 4.
50.9 	(i) No contribution sufficiency in excess of one percent of covered pay may be 
50.10 	proposed to be used to increase benefits, and no benefit increase may be proposed that 
50.11 	would initiate an automatic adjustment to increase contributions under this subdivision. 
50.12 	Any proposed benefit improvement must include a recommendation, prepared by the 
50.13 	approved actuary retained under section 356.214, subdivision 1, and reviewed by the 
50.14 	actuary retained by the Legislative Commission on Pensions and Retirement as provided 
50.15 	under section 356.214, subdivision 4, on how the benefit modification will be funded.

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

50.17 	Sec. 3. Minnesota Statutes 2014, section 354.42, subdivision 4b, is amended to read:
50.18 		Subd. 4b.Contribution rate revision. (a) Notwithstanding the contribution rate 
50.19 	provisions under subdivisions 2 and 3, the Board of Trustees of the Teachers Retirement 
50.20 	Association may adjust the employee and employer contribution rates may be adjusted 
50.21 	as follows:
50.22 	(1) if, after June 30, 2015, the regular actuarial valuation of the plan under section 
50.23 	356.215 indicates that there is a contribution sufficiency under subdivision 4a equal to or 
50.24 	greater than one percent of covered payroll and the sufficiency has existed for at least two 
50.25 	consecutive years, the employee and employer contribution rates for the plan may each be 
50.26 	decreased to a level such that the sufficiency equals no more than one percent of covered 
50.27 	payroll based on the most recent actuarial valuation; or
50.28 	(2) if, after June 30, 2015, the regular valuation of the plan under section 356.215
50.29 	indicates that there is a deficiency equal to or greater than 0.25 one-half of one percent 
50.30 	of covered payroll and the deficiency has existed for at least two consecutive years, the 
50.31 	employee and employer contribution rates for the applicable plan may each be increased by:
50.32 	(i) 0.25 percent if the deficiency is less than two percent of covered payroll;
50.33 	(ii) 0.5 percent if the deficiency is equal to or greater than two percent of covered 
50.34 	payroll and less than or equal to four percent; and
51.1 	(iii) 0.75 percent if the deficiency is greater than four percent. Any decrease in 
51.2 	employee and employer contribution rates must not result in the total of contribution rates 
51.3 	that is less than the total of normal cost and administrative expenses.
51.4 	(b) To determine if an adjustment is to be made, the board of trustees shall consult 
51.5 	with the approved actuary retained under section 356.214 and shall take into consideration 
51.6 	factors that include, but are not limited to, the contribution rates based on actuarial value of 
51.7 	assets and contribution rates based on the market value of assets; the funded ratio based on 
51.8 	the actuarial value of assets and based on the market value of assets; the number of years 
51.9 	remaining to the amortization target date; the recent experience of the investment markets; 
51.10 	and the results of the 30-year funding, disbursements, and contributions projections 
51.11 	prepared every other year as required under the standards for actuarial work adopted by 
51.12 	the Legislative Commission on Pensions and Retirement.

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

51.14 	Sec. 4. Minnesota Statutes 2014, section 354.42, subdivision 4d, is amended to read:
51.15 		Subd. 4d.Reporting; commission review. A contribution rate increase or decrease 
51.16 	made under subdivision 4b, as determined by the executive director of the Teachers 
51.17 	Retirement Association, must be reported to the chair and the executive director of the 
51.18 	Legislative Commission on Pensions and Retirement on or before the next February 1 and, 
51.19 	if the Legislative Commission on Pensions and Retirement does not recommend against the 
51.20 	rate change or does not recommend a modification in the rate change, is effective on the next 
51.21 	July 1 following the determination by the executive director that a contribution deficiency 
51.22 	or sufficiency exists based on the most recent actuarial valuation under section 356.215.

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

51.24 	ARTICLE 6
51.25 	POLICE AND FIREFIGHTER RETIREMENT SUPPLEMENTAL STATE AID

51.26 	Section 1. Minnesota Statutes 2014, section 423A.022, subdivision 5, is amended to 
51.27 	read:
51.28 		Subd. 5.Aid termination. (a) The aid program under this sectionsubdivision 2, 
51.29 	paragraph (a), clauses (1) and (3), ends on the December 1 next following the actuarial 
51.30 	valuation date on which the assets of the retirement plan on a market value basis equals 
51.31 	or exceeds 90 percent of the total actuarial accrued liabilities of the retirement plan as 
51.32 	disclosed in an actuarial valuation prepared under section 356.215 and the Standards for 
51.33 	Actuarial Work promulgated by the Legislative Commission on Pensions and Retirement, 
52.1 	for the State Patrol retirement plan or the public employees police and fire retirement 
52.2 	plan, whichever occurs last.
52.3 	(b) The aid under subdivision 2, paragraph (a), clause (2), does not terminate.

52.4 	ARTICLE 7
52.5 	STATEWIDE VOLUNTEER FIREFIGHTER RETIREMENT PLAN LUMP 
52.6 	SUM RETIREMENT DIVISION MODIFICATIONS

52.7 	Section 1. Minnesota Statutes 2014, section 353G.09, subdivision 3, is amended to read:
52.8 		Subd. 3.Alternative pension eligibility and computation. (a) An active member 
52.9 	of the retirement plan is entitled to an alternative lump-sum service pension from the 
52.10 	retirement plan if the person:
52.11 	(1) has separated from active service with the fire department for at least 30 days;
52.12 	(2) has attained the age of at least 50 years or the age for receipt of a service pension 
52.13 	under the benefit plan of the applicable former volunteer firefighters relief association as 
52.14 	of the date immediately prior tobefore the election of the retirement coverage change, 
52.15 	whichever is later;
52.16 	(3) has completed at least five years of active service with the fire department and at 
52.17 	least five years in total as a member of the applicable former volunteer firefighters relief 
52.18 	association or of the retirement plan, but has not rendered at least five years of good time 
52.19 	service credit as a member of the retirement plan; and
52.20 	(4) applies in a manner prescribed by the executive director for the service pension.
52.21 	(b) If retirement coverage prior tobefore statewide retirement plan coverage was 
52.22 	provided by a defined benefit plan volunteer firefighters relief association, the alternative 
52.23 	lump-sum service pension is the service pension amount specified in the bylaws of the 
52.24 	applicable former volunteer firefighters relief association either as of the date immediately 
52.25 	prior tobefore the election of the retirement coverage change or as of the date immediately 
52.26 	before the termination of firefighting services, whichever is earlier, multiplied by the total 
52.27 	number of years of service as a member of that volunteer firefighters relief association 
52.28 	and as a member of the retirement plan. If retirement coverage prior tobefore statewide 
52.29 	retirement plan coverage was provided by a defined contribution plan volunteer firefighters 
52.30 	relief association, the alternative lump-sum service pension is an amount equal to that 
52.31 	portion of the person's account balance that the person was vested for as of the date 
52.32 	immediately prior tobefore the date on which statewide retirement plan coverage was first 
52.33 	provided to the person plus six percent annual compound interest from that date until the 
52.34 	date immediately prior tobefore the date of retirement.

53.1 	Sec. 2. Minnesota Statutes 2014, section 353G.11, subdivision 1, is amended to read:
53.2 		Subdivision 1.Service pension levels. Except as provided in subdivision 1a, the 
53.3 	retirement plan provides the following levels of service pension amounts per full year of 
53.4 	good time service credit to be selected at the election of coverage, or, if fully funded, 
53.5 	thereafter:

53.6		Level A
	$500 per year of good time service credit
	
53.7		Level B
	$600 per year of good time service credit
	
53.8		Level C
	$700 per year of good time service credit
	
53.9		Level D
	$800 per year of good time service credit
	
53.10		Level E
	$900 per year of good time service credit
	
53.11		Level F
	$1,000 per year of good time service credit
	
53.12		Level G
	$1,250 per year of good time service credit
	
53.13		Level H
	$1,500 per year of good time service credit
	
53.14		Level I
	$2,000 per year of good time service credit
	
53.15		Level J
	$2,500 per year of good time service credit
	
53.16		Level K
	$3,000 per year of good time service credit
	
53.17		Level L
	$3,500 per year of good time service credit
	
53.18		Level M
	$4,000 per year of good time service credit
	
53.19		Level N
	$4,500 per year of good time service credit
	
53.20		Level O
	$5,000 per year of good time service credit
	
53.21		Level P
	$5,500 per year of good time service credit
	
53.22		Level Q
	$6,000 per year of good time service credit
	
53.23		Level R
	$6,500 per year of good time service credit
	
53.24		Level S
	$7,000 per year of good time service credit
	
53.25		Level T
	$7,500 per year of good time service credit
	
53.26 	(1) a minimum service pension level of $500 per year;
53.27 	(2) a maximum service pension level of $7,500 per year; and
53.28 	(3) 69 service pension levels between the minimum level and the maximum level 
53.29 	in $100 increments.

53.30 	Sec. 3. Minnesota Statutes 2014, section 353G.11, subdivision 1a, is amended to read:
53.31 		Subd. 1a.Continuation of prior service pension levels. (a) If a municipality or 
53.32 	independent nonprofit firefighting corporation elects to be covered by the retirement plan 
53.33 	prior tobefore January 1, 2010, and selects the $750 per year of good time service credit 
53.34 	service pension amount effective for January 1, 2010, that level continues for the volunteer 
53.35 	firefighters of that municipality or independent nonprofit firefighting corporation until a 
53.36 	different service pension amount is selected under subdivision 2 after January 1, 2010.
53.37 	(b) If a municipality or independent nonprofit firefighting corporation elected to be 
53.38 	covered by the retirement plan before January 1, 2015, and selected a service pension 
54.1 	level under subdivision 1, other than a good time service credit service pension amount 
54.2 	under subdivision 1, that level continues for the volunteer firefighters of the municipality 
54.3 	or independent nonprofit firefighting corporation until a different service pension amount 
54.4 	is selected under subdivision 2 after January 1, 2014.

54.5 	Sec. 4. Minnesota Statutes 2014, section 353G.11, subdivision 2, is amended to read:
54.6 		Subd. 2.Level selection. At the time ofAfter the election to transfer of retirement 
54.7 	coverage, or on April 30 thereafter to the retirement plan, the governing body or bodies of 
54.8 	the entity or entities operating the fire department whose firefighters are covered by the 
54.9 	retirement plan may request a cost estimate from the executive director of an increase in 
54.10 	the service pension level applicable to the active firefighters of the fire department. Within 
54.11 	90120 days of the receipt of the cost estimate prepared by the executive director using a 
54.12 	procedure certified as accurate by the approved actuary retained by the Public Employees 
54.13 	Retirement Association, the governing body or bodies may approve the service pension 
54.14 	level change, effective for January 1 of the following calendar year unless the governing 
54.15 	body or bodies specify in the approved document an effective date as the January 1 of the 
54.16 	second year following the level increase approval. If the approval occurs after April 30, 
54.17 	the required municipal contribution for the following calendar year must be recalculated 
54.18 	and the results reported to the municipality or municipalities. If not approved in a timely 
54.19 	fashion, the service pension level change is considered to have been disapproved.

54.20 	Sec. 5. Minnesota Statutes 2014, section 353G.11, subdivision 4, is amended to read:
54.21 		Subd. 4.Ancillary benefits. Except as provided under section 353G.115, no 
54.22 	disability, death, funeral, or other ancillary benefit beyond a service pension or a survivor 
54.23 	benefit is payable from the retirement plan.

54.24 	Sec. 6. Minnesota Statutes 2014, section 353G.13, subdivision 1, is amended to read:
54.25 		Subdivision 1.Eligibility. An active firefighter who is a member of the retirement 
54.26 	plan who also renders firefighting service and has good time service credit in the 
54.27 	retirement plan from another fire department, if the number of years of good time service 
54.28 	credit in the plan from a combination of nonconcurrent periods totals at least five years, 
54.29 	is eligible, upon complying with the other requirements of section 353G.09, to receive 
54.30 	a service pension upon filing an application in the manner prescribed by the executive 
54.31 	director, computed as provided in subdivision 2.

54.32 	Sec. 7. Minnesota Statutes 2014, section 353G.13, subdivision 2, is amended to read:
55.1 		Subd. 2.Combined service pension computation. The service pension payable to 
55.2 	a firefighter who qualifies under subdivision 1 is the per year of good time service credit 
55.3 	service pension amount in effect for each account in which the firefighter has one or more 
55.4 	years of good time service credit as of the date on which the firefighter terminated active 
55.5 	service with the fire department associated with the applicable account, multiplied by 
55.6 	the number of years of good time service credit that the firefighter has in the applicable 
55.7 	account and adjusted for the vesting percentage based on the total number of years of good 
55.8 	time service covered in the applicable accounts.

55.9 	Sec. 8. EFFECTIVE DATE.
 55.10 	Unless otherwise specified, this article is effective July 1, 2015.

55.11 	ARTICLE 8
55.12 	STATEWIDE VOLUNTEER FIREFIGHTER RETIREMENT PLAN MONTHLY 
55.13 	BENEFIT RETIREMENT DIVISION CREATION

55.14 	Section 1. Minnesota Statutes 2014, section 11A.17, subdivision 2, is amended to read:
55.15 		Subd. 2.Assets. (a) The assets of the supplemental investment fund consist of the 
55.16 	money certified and transmitted to the state board from the participating public retirement 
55.17 	plans and funds and from the voluntary statewide lump-sum volunteer firefighter 
55.18 	retirement plan under section 353G.08.
55.19 	(b) With the exception of the assets of the voluntary statewide lump-sum volunteer 
55.20 	firefighter retirement fund, the assets must be used to purchase investment shares in 
55.21 	the investment accounts as specified by the plan or fund. The assets of the voluntary 
55.22 	statewide lump-sum volunteer firefighter retirement fund must be invested in the volunteer 
55.23 	firefighter account.
55.24 	(c) These accounts must be valued at least on a monthly basis but may be valued 
55.25 	more frequently as determined by the State Board of Investment.

55.26 	Sec. 2. Minnesota Statutes 2014, section 353G.01, subdivision 6, is amended to read:
55.27 		Subd. 6.Fund. "Fund" means the voluntary statewide lump-sum volunteer 
55.28 	firefighter retirement fund established under section 353G.02, subdivision 3.

55.29 	Sec. 3. Minnesota Statutes 2014, section 353G.01, subdivision 7, is amended to read:
55.30 		Subd. 7.Good time service credit. "Good time service credit" means the length of 
55.31 	service credit for an active firefighter that is reported by the applicable fire chief based 
56.1 	on the minimum firefighter activity standards of the fire department. The credit may be 
56.2 	recognizedreported on an annual or monthly basis.

56.3 	Sec. 4. Minnesota Statutes 2014, section 353G.01, is amended by adding a subdivision 
56.4 	to read:
56.5 		Subd. 7a.Lump-sum account. "Lump-sum account" means that portion of the 
56.6 	retirement fund that contains the assets applicable to the lump-sum retirement division.

56.7 	Sec. 5. Minnesota Statutes 2014, section 353G.01, is amended by adding a subdivision 
56.8 	to read:
56.9 		Subd. 7b.Lump-sum retirement division. "Lump-sum retirement division" means 
56.10 	the division of the plan governed by section 353G.11.

56.11 	Sec. 6. Minnesota Statutes 2014, section 353G.01, is amended by adding a subdivision 
56.12 	to read:
56.13 		Subd. 8a.Monthly benefit account. "Monthly benefit account" means that portion 
56.14 	of the retirement fund that contains the assets applicable to the monthly benefit retirement 
56.15 	division.

56.16 	Sec. 7. Minnesota Statutes 2014, section 353G.01, is amended by adding a subdivision 
56.17 	to read:
56.18 		Subd. 8b.Monthly benefit retirement division. "Monthly benefit retirement 
56.19 	division" means the division of the plan governed by section 353G.113.

56.20 	Sec. 8. Minnesota Statutes 2014, section 353G.01, is amended by adding a subdivision 
56.21 	to read:
56.22 		Subd. 10a.Retirement benefit plan document. "Retirement benefit plan 
56.23 	document", for an account in the monthly benefit retirement division, means the articles of 
56.24 	incorporation and bylaws of the prior former volunteer firefighters relief association in 
56.25 	effect on the day before the date on which the retirement coverage transfer under section 
56.26 	353G.05 occurred or as provided in the most recent modification under section 353G.121.

56.27 	Sec. 9. Minnesota Statutes 2014, section 353G.01, subdivision 11, is amended to read:
56.28 		Subd. 11.Retirement fund. "Retirement fund" means the voluntary statewide 
56.29 	lump-sum volunteer firefighter retirement fund established under section 353G.02, 
56.30 	subdivision 3.

57.1 	Sec. 10. Minnesota Statutes 2014, section 353G.01, subdivision 12, is amended to read:
57.2 		Subd. 12.Retirement plan. "Retirement plan" means the retirement plan, either 
57.3 	the lump-sum retirement division or the monthly benefit retirement division,  established 
57.4 	by this chapter.

57.5 	Sec. 11. Minnesota Statutes 2014, section 353G.02, is amended to read:
57.6 	353G.02 PLAN AND FUND CREATION.
57.7 		Subdivision 1.Retirement plan. The voluntary statewide lump-sum volunteer 
57.8 	firefighter retirement plan, consisting of a lump-sum retirement division and a monthly 
57.9 	benefit retirement division, is created.
57.10 		Subd. 2.Administration. The policy-making, management, and administrative 
57.11 	functions related to the voluntary statewide lump-sum volunteer firefighter retirement 
57.12 	plan and fund are vested in the board of trustees and the executive director of the Public 
57.13 	Employees Retirement Association. Their duties, authority, and responsibilities are as 
57.14 	provided in section 353.03. Fiduciary activities of the plan and fund must be undertaken 
57.15 	in a manner consistent with chapter 356A.
57.16 		Subd. 3.Retirement fund. (a) The voluntary statewide lump-sum volunteer 
57.17 	firefighter retirement fund, consisting of a lump-sum account and a monthly benefit 
57.18 	account, is created. The fund contains the assets attributable to the voluntary statewide 
57.19 	lump-sum volunteer firefighter retirement plan.
57.20 	(b) The State Board of Investment shall invest those portions of the retirement 
57.21 	fund not required for immediate purposes in the voluntary statewide lump-sum volunteer 
57.22 	firefighter retirement plan in the statewide lump-sum volunteer firefighter account of the 
57.23 	Minnesota supplemental investment fund under section 11A.17.
57.24 	(c) The commissioner of management and budget is the ex officio treasurer of the 
57.25 	voluntary statewide lump-sum volunteer firefighter retirement fund. The commissioner of 
57.26 	management and budget's general bond to the state covers all liability for actions taken as 
57.27 	the treasurer of the retirement fund.
57.28 	(d) The revenues of the retirement plan beyond investment returns are governed by 
57.29 	section 353G.08 and must be deposited in the retirement fund. The disbursements of the 
57.30 	retirement plan are governed by section 353G.08. The commissioner of management and 
57.31 	budget shall transmit a detailed statement showing all credits to and disbursements from 
57.32 	the retirement fund to the executive director monthly.
57.33 		Subd. 4.Audit; actuarial valuation. (a) The legislative auditor shall periodically 
57.34 	audit the voluntary statewide lump-sum volunteer firefighter retirement fund.
58.1 	(b) An actuarial valuation of the lump-sum retirement division of the voluntary 
58.2 	statewide lump-sum volunteer firefighter retirement plan may be performed periodically as 
58.3 	determined to be appropriate or useful by the board. An actuarial valuation of the monthly 
58.4 	benefit retirement division of the voluntary statewide volunteer firefighter retirement plan 
58.5 	must be performed as frequently as required by government sector generally accepted 
58.6 	accounting standards. An actuarial valuation must be performed by the approved 
58.7 	actuary retained under section 356.214 and must conform with section 356.215 and the 
58.8 	standards for actuarial work. An actuarial valuation must contain sufficient detail for each 
58.9 	participating employing entity to ascertain the actuarial condition of its account in the 
58.10 	fund and the contribution requirement towards its account.
58.11 		Subd. 5.Legal advisor; attorney general. (a) The legal advisor of the board 
58.12 	and the executive director with respect to the voluntary statewide lump-sum volunteer 
58.13 	firefighter retirement plan is the attorney general.
58.14 	(b) The board may sue, petition, be sued, or be petitioned under this chapter with 
58.15 	respect to the plan or the fund in the name of the board.
58.16 	(c) The attorney general shall represent the board in all actions by the board or 
58.17 	against the board with respect to the plan or the fund.
58.18 	(d) Venue of all actions related to the plan or fund is in the court for the first judicial 
58.19 	district unless the action is an appeal to the Court of Appeals under section 356.96.
58.20 		Subd. 6.Initial administrative expenses of the monthly benefit retirement 
58.21 	division; allocation of reimbursement. (a) The administration expenses incurred by the 
58.22 	Public Employees Retirement Association in the establishment of the monthly benefit 
58.23 	retirement division of the voluntary statewide volunteer firefighters retirement plan, 
58.24 	including any computer programming expenses and any actuarial consultant expenses, are 
58.25 	payable from the assets of the initial monthly benefit volunteer firefighter relief association 
58.26 	that elects to transfer its administration to the voluntary statewide volunteer firefighter 
58.27 	retirement plan, following the transfer of assets.
58.28 	(b) The administrative expenses in excess of $33,600 paid under paragraph (a) must 
58.29 	be reimbursed by the next nine monthly benefit volunteer firefighter relief associations that 
58.30 	transfer plan administration to the voluntary statewide volunteer firefighters retirement 
58.31 	plan. The reimbursement charge for each of the nine is three-tenths of one percent of the 
58.32 	market value of assets of the volunteer firefighter relief association as of December 31, 
58.33 	2012. The reimbursement amounts, up to the amount of administrative expenses actually 
58.34 	incurred under paragraph (a) in excess of $33,600, must be credited to the account of the 
58.35 	fire department associated with the former monthly benefit volunteer firefighter relief 
59.1 	association that first transferred plan administration to the volunteer firefighter retirement 
59.2 	plan.

59.3 	Sec. 12. Minnesota Statutes 2014, section 353G.03, is amended to read:
59.4 	353G.03 VOLUNTARY STATEWIDE LUMP-SUM VOLUNTEER 
59.5 	FIREFIGHTER RETIREMENT PLAN ADVISORY BOARD.
59.6 		Subdivision 1.Establishment. A Voluntary Statewide Lump-Sum Volunteer 
59.7 	Firefighter Retirement Plan Advisory Board is created.
59.8 		Subd. 2.Function; purpose. The advisory board shall meet periodically to provide 
59.9 	advice to the board of trustees of the Public Employees Retirement Association about the 
59.10 	retirement coverage needs of volunteer firefighters who are members of the retirement 
59.11 	plan and about the legislative and administrative changes that would assist the retirement 
59.12 	plan in accommodating volunteer firefighters who are not members of the retirement plan.
59.13 		Subd. 3.Composition. (a) The advisory board consists of seveneight members.
59.14 	(b) The advisory board members are:
59.15 	(1) one representative of Minnesota townships, appointed by the Minnesota 
59.16 	Association of Townships;
59.17 	(2) two representatives of Minnesota cities, appointed by the League of Minnesota 
59.18 	Cities;
59.19 	(3) one representative of Minnesota fire chiefs, who is a fire chief, appointed by the 
59.20 	Minnesota State Fire Chiefs Association;
59.21 	(4) two representatives of Minnesota volunteer firefighters, all who are active 
59.22 	volunteer firefighters, one of whom is covered by the lump-sum retirement division and 
59.23 	one of whom is covered by the monthly benefit retirement division, appointed by the 
59.24 	Minnesota State Fire Chiefs Association;
59.25 	(5) one representative of Minnesota volunteer firefighters who is covered by 
59.26 	the lump-sum retirement division, appointed by the Minnesota State Fire Departments 
59.27 	Association; and
59.28 	(5) (6) one representative of the Office of the State Auditor, designated by the state 
59.29 	auditor.
59.30 		Subd. 4.Term. (a) The initial terms on the advisory board for the Minnesota 
59.31 	townships representative and the Minnesota fire chiefs representative are one year. The 
59.32 	initial terms on the advisory board for one of the Minnesota cities representatives and one 
59.33 	of the Minnesota active volunteer firefighter representatives are two years. The initial 
59.34 	terms on the advisory board for the other Minnesota cities representative and the other 
60.1 	Minnesota active volunteer firefighter representative are three years. The term for the 
60.2 	Office of the State Auditor representative is determined by the state auditor.
60.3 	(b) Subsequent Terms on the advisory board other than the Office of the State 
60.4 	Auditor representative are three years.
60.5 		Subd. 5.Compensation of advisory board. The compensation of members of the 
60.6 	advisory board, other than the Office of the State Auditor representative, is governed by 
60.7 	section 15.0575, subdivision 3.

60.8 	EFFECTIVE DATE. Subdivisions 1, 2, 4, and 5 are effective July 1, 2015. 
60.9 	Subdivision 3 is effective the July 1 next following the day on which one or more 
60.10 	volunteer firefighter relief associations providing monthly service pensions in whole or in 
60.11 	part transfer administration of the retirement plan to the Public Employees Retirement 
60.12 	Association under Minnesota Statutes, chapter 353G.

60.13 	Sec. 13. Minnesota Statutes 2014, section 353G.04, is amended to read:
60.14 	353G.04 INFORMATION FROM MUNICIPALITIES AND FIRE 
60.15 	DEPARTMENTS.
60.16 	The chief executive officers of municipalities and fire departments with volunteer 
60.17 	firefighters covered by the voluntary lump-sumstatewide volunteer firefighter retirement 
60.18 	plan shall provide all relevant information and records requested by the board, the 
60.19 	executive director, and the State Board of Investment as required to perform their duties.

60.20 	Sec. 14. Minnesota Statutes 2014, section 353G.05, is amended to read:
60.21 	353G.05 PLAN COVERAGE ELECTION.
60.22 		Subdivision 1.Coverage. Any municipality or independent nonprofit firefighting 
60.23 	corporation may elect to have its volunteer firefighters covered by the lump-sum 
60.24 	retirement division or the monthly benefit retirement division of the retirement plan, 
60.25 	whichever applies.
60.26 		Subd. 2.Election of coverage; lump sum. (a) The process for electing coverage of 
60.27 	volunteer firefighters by the lump-sum retirement plandivision is initiated by a request 
60.28 	to the executive director for a cost analysis of the prospective retirement coverage under 
60.29 	the lump-sum retirement division.
60.30 	(b) If the volunteer firefighters are currently covered by a lump-sum volunteer 
60.31 	firefighters relief association or a defined contribution volunteer firefighters' relief 
60.32 	association governed by chapter 424A, the cost analysis of the prospective retirement 
60.33 	coverage must be requested jointly by the secretary of the volunteer firefighters relief 
61.1 	association, following approval of the request by the board of the volunteer firefighters 
61.2 	relief association, and the chief administrative officer of the entity associated with the relief 
61.3 	association, following approval of the request by the governing body of the entity associated 
61.4 	with the relief association. If the relief association is associated with more than one 
61.5 	entity, the chief administrative officer of each associated entity must execute the request. 
61.6 	If the volunteer firefighters are not currently covered by a volunteer firefighters relief 
61.7 	association, the cost analysis of the prospective retirement coverage must be requested by 
61.8 	the chief administrative officer of the entity operating the fire department. The request 
61.9 	must be made in writing and must be made on a form prescribed by the executive director.
61.10 	(c) The cost analysis of the prospective retirement coverage by the lump-sum 
61.11 	retirement division of the statewide retirement plan must be based on the service pension 
61.12 	amount under section 353G.11 closest to the service pension amount provided by the 
61.13 	volunteer firefighters relief association if the relief association is a lump-sum defined 
61.14 	benefit plan, or the amount equal to 95 percent of the most current average account 
61.15 	balance per relief association member if the relief association is a defined contribution 
61.16 	plan, or to the lowest service pension amount under section 353G.11 if there is no 
61.17 	volunteer firefighters relief association, rounded up, and any other service pension amount 
61.18 	designated by the requester or requesters. The cost analysis must be prepared using a 
61.19 	mathematical procedure certified as accurate by an approved actuary retained by the 
61.20 	Public Employees Retirement Association.
61.21 	(d) If a cost analysis is requested and a volunteer firefighters' relief association exists 
61.22 	that has filed the information required under section 69.051 in a timely fashion, upon 
61.23 	request by the executive director, the state auditor shall provide the most recent data 
61.24 	available on the financial condition of the volunteer firefighters relief association, the most 
61.25 	recent firefighter demographic data available, and a copy of the current relief association 
61.26 	bylaws. If a cost analysis is requested, but no volunteer firefighters relief association 
61.27 	exists, the chief administrative officer of the entity operating the fire department shall 
61.28 	provide the demographic information on the volunteer firefighters serving as members 
61.29 	of the fire department requested by the executive director.
61.30 	(e) If a cost analysis is requested, the executive director of the State Board of 
61.31 	Investment shall review the investment portfolio of the relief association, if applicable, 
61.32 	for compliance with the applicable provisions of chapter 11A and for appropriateness 
61.33 	for retention under the established investment objectives and investment policies of the 
61.34 	State Board of Investment. If the prospective retirement coverage change is approved 
61.35 	under paragraph (f), the State Board of Investment may require that the relief association 
61.36 	liquidate any investment security or other asset which the executive director of the State 
62.1 	Board of Investment has determined to be an ineligible or inappropriate investment for 
62.2 	retention by the State Board of Investment. The security or asset liquidation must occur 
62.3 	before the effective date of the transfer of retirement plan coverage. If requested to do so by 
62.4 	the chief administrative officer of the relief association, the executive director of the State 
62.5 	Board of Investment shall provide advice about the best means to conduct the liquidation.
62.6 	(f) Upon receipt of the cost analysis, the governing body of the municipality 
62.7 	or independent nonprofit firefighting corporation associated with the fire department 
62.8 	shall either approve or disapprove the retirement coverage change within 120 days. If 
62.9 	the retirement coverage change is not acted upon within 120 days, it is deemed to be 
62.10 	disapproved. If the retirement coverage change is approved by the applicable governing 
62.11 	body, coverage by the voluntary statewide lump-sum volunteer firefighter retirement plan 
62.12 	is effective on the next following January 1.
62.13 		Subd. 3.Election of coverage; monthly benefit. (a) The process for electing 
62.14 	coverage of volunteer firefighters by the monthly retirement division is initiated by a 
62.15 	request to the executive director for an actuarial cost analysis of the prospective retirement 
62.16 	coverage under the monthly benefit retirement division. This request must be made by 
62.17 	the secretary of the volunteer firefighters relief association and the chief administrative 
62.18 	officer of the entity associated with the relief association, both of which must first obtain 
62.19 	approval of the request from their respective municipal governing body or independent 
62.20 	nonprofit firefighting corporation. The request must be made in writing and must be made 
62.21 	on a form prescribed by the executive director.
62.22 	(b) Coverage by the monthly benefit retirement division may only be elected if 
62.23 	the volunteer firefighters are covered by a monthly benefit volunteer firefighters relief 
62.24 	association governed by chapter 424A.
62.25 	(c) The cost analysis under paragraph (a) must be prepared by the approved actuary 
62.26 	retained by the Public Employees Retirement Association. The cost analysis must be 
62.27 	based on:
62.28 	(1) the service pension and other retirement benefit types and amounts in effect for 
62.29 	the volunteer firefighters relief association as of the date of the request and any other 
62.30 	amount or amounts designated by the requesters, as disclosed in a special actuarial 
62.31 	valuation prepared under sections 356.215 and 356.216; and
62.32 	(2) the standards for actuarial work, and the actuarial assumptions utilized in the 
62.33 	most recent prior actuarial valuation, except that the applicable interest rate actuarial 
62.34 	assumption is six percent.
63.1 	(d) The secretary of the volunteer firefighters relief association making the request 
63.2 	must supply the demographic and financial data necessary for the cost analysis to be 
63.3 	prepared.
63.4 		Subd. 4.Invested assets review. If a cost analysis is requested under subdivision 2 
63.5 	or 3, the executive director of the State Board of Investment shall review the investment 
63.6 	portfolio of the relief association, if applicable, for compliance with the applicable 
63.7 	provisions of chapter 11A and for appropriateness for retention under the established 
63.8 	investment objectives and investment policies of the State Board of Investment. If the 
63.9 	prospective retirement coverage change is approved under subdivision 5, the State 
63.10 	Board of Investment may require that the relief association liquidate any investment 
63.11 	security or other asset which the executive director of the State Board of Investment has 
63.12 	determined to be an ineligible or inappropriate investment for retention by the State Board 
63.13 	of Investment. The security or asset liquidation must occur before the effective date of 
63.14 	the transfer of retirement plan coverage. If requested to do so by the chief administrative 
63.15 	officer of the relief association, the executive director of the State Board of Investment 
63.16 	shall provide advice about the best means to conduct the liquidation.
63.17 		Subd. 5.Finalization; coverage transfer. Upon receipt of the cost analysis 
63.18 	requested under subdivision 2 or 3, the governing body of the municipality or independent 
63.19 	nonprofit firefighting corporation associated with the fire department shall either approve 
63.20 	or disapprove the retirement coverage change within 120 days. If the retirement coverage 
63.21 	change is not acted upon within 120 days, it is deemed to be disapproved. If the retirement 
63.22 	coverage change is approved by the applicable governing body, coverage by the voluntary 
63.23 	statewide volunteer firefighter retirement plan is effective on the January 1 next following 
63.24 	the approval date.

63.25 	Sec. 15. Minnesota Statutes 2014, section 353G.06, is amended to read:
63.26 	353G.06 DISESTABLISHMENT OF PRIOR VOLUNTEER FIREFIGHTERS 
63.27 	RELIEF ASSOCIATION SPECIAL FUND UPON RETIREMENT COVERAGE 
63.28 	CHANGE.
63.29 		Subdivision 1.Special fund disestablishment.  On the dateDecember 31 
63.30 	immediately prior to the effective date of the coverage change, the special fund of the 
63.31 	applicable volunteer firefighters relief association, if one exists, ceases to exist as a 
63.32 	pension fund of the association and legal title to the assets of the special fund transfers 
63.33 	to the State Board of Investment, with the undivided beneficial title to the assets of the 
63.34 	special fund remaining in the applicable volunteer firefighters as a group.
64.1 		Subd. 2.Other relief association changes. In addition to the transfer and 
64.2 	disestablishment of the special fund under subdivision 1, notwithstanding any provisions 
64.3 	of chapter 424A or 424B to the contrary, upon the effective date of the change in 
64.4 	volunteer firefighter retirement coverage, if the relief association membership elects to 
64.5 	retain the relief association as a fraternal organization after the benefit coverage election, 
64.6 	the following changes must be implemented with respect to the applicable volunteer 
64.7 	firefighters relief association:
64.8 	(1) the relief association board of trustees membership is reduced to five, comprised 
64.9 	of the fire chief of the fire department and four trustees elected by and from the relief 
64.10 	association membership;
64.11 	(2) the relief association may only maintain a general fund, which continues to 
64.12 	be governed by section 424A.06;
64.13 	(3) the relief association is not authorized to receive the proceeds of any state aid or 
64.14 	to receive any municipal funds; and
64.15 	(4) the relief association may not pay any service pension or benefit that was not 
64.16 	authorized as a general fund disbursement under the articles of incorporation or bylaws of 
64.17 	the relief association in effect immediately prior to the plan coverage election process.
64.18 		Subd. 3.Successor in interest. Upon the disestablishment of the special fund of 
64.19 	the volunteer firefighters relief association under this section, the voluntary statewide 
64.20 	lump-sum volunteer firefighter retirement plan is the successor in interest of the special 
64.21 	fund of the volunteer firefighters relief association for all claims against the special fund 
64.22 	other than a claim against the special fund, the volunteer firefighters relief association, 
64.23 	the municipality, the fire department, or any person connected with the volunteer 
64.24 	firefighters relief association in a fiduciary capacity under chapter 356A or common law 
64.25 	that was based on any act or acts which were not performed in good faith and which 
64.26 	constituted a breach of a fiduciary obligation. As the successor in interest of the special 
64.27 	fund of the volunteer firefighters relief association, the voluntary statewide lump-sum 
64.28 	volunteer firefighter retirement plan may assert any applicable defense in any judicial 
64.29 	proceeding which the board of trustees of the volunteer firefighters relief association or the 
64.30 	municipality would have been entitled to assert.

64.31 	Sec. 16. Minnesota Statutes 2014, section 353G.07, is amended to read:
64.32 	353G.07 CERTIFICATION OF GOOD TIME SERVICE CREDIT.
64.33 	(a) Annually, by March 31, the fire chief of the fire department with firefighters who 
64.34 	are active members of either the lump-sum retirement plandivision or the monthly benefit 
65.1 	retirement division shall certify to the executive director the good time service credit for the 
65.2 	previous calendar year of each firefighter rendering active service with the fire department.
65.3 	(b) The fire chief shall provide to each firefighter rendering active service with 
65.4 	the fire department notification of the amount of good time service credit rendered by 
65.5 	the firefighter for the calendar year. The good time service credit notification must be 
65.6 	provided to the firefighter 60 days before its certification to the executive director of the 
65.7 	Public Employees Retirement Association, along with an indication of the process for the 
65.8 	firefighter to challenge the fire chief's determination of good time service credit. If the 
65.9 	good time service credit amount is challenged in a timely fashion, the fire chief shall hold 
65.10 	a hearing on the challenge, accept and consider any additional pertinent information, 
65.11 	and make a final determination of good time service credit. The final determination of 
65.12 	good time service credit by the fire chief is not reviewable by the executive director of 
65.13 	the Public Employees Retirement Association or by the board of trustees of the Public 
65.14 	Employees Retirement Association.
65.15 	(c) The good time service credit certification is an official public document. If a 
65.16 	false good time service credit certification is filed or if false information regarding good 
65.17 	time service credits is provided, section 353.19 applies.
65.18 	(d) The good time service credit certification must be expressed as a percentage of a 
65.19 	full year of service during which an active firefighter rendered at least the minimum level 
65.20 	and quantity of fire suppression, emergency response, fire prevention, or fire education 
65.21 	duties required by the fire department under the rules and regulations applicable to the 
65.22 	fire department. No more than one year of good time service credit may be certified 
65.23 	for a calendar year.
65.24 	(e) If a firefighter covered by the retirement plan leaves active firefighting service 
65.25 	to render active military service that is required to be coveredgoverned by the federal 
65.26 	Uniformed Services Employment and Reemployment Rights Act, as amended, the person 
65.27 	must be certified as providing a full year of good time service credit in each year of the 
65.28 	military service, up to the applicable limit of the federal Uniformed Services Employment 
65.29 	and Reemployment Rights Act. If the firefighter does not return from the military service 
65.30 	in compliance with the federal Uniformed Services Employment and Reemployment 
65.31 	Rights Act, the good time service credits applicable to that military service credit period 
65.32 	are forfeited and cancel at the end of the calendar year in which the federal law time 
65.33 	limit occurs.

65.34 	Sec. 17. Minnesota Statutes 2014, section 353G.08, is amended to read:
65.35 	353G.08 RETIREMENT PLAN FUNDING; DISBURSEMENTS.
66.1 		Subdivision 1.Annual funding requirements; lump-sum retirement division. (a) 
66.2 	Annually, the executive director shall determine the funding requirements of each account 
66.3 	in the lump-sum retirement division of the voluntary statewide lump-sum volunteer 
66.4 	firefighter retirement plan on or before August 1. The funding requirements as directed 
66.5 	computed under this section,subdivision must be determined using a mathematical 
66.6 	procedure developed and certified as accurate by anthe approved actuary retained by the 
66.7 	Public Employees Retirement Association and must be based on present value factors 
66.8 	using a six percent interest rate, without any decrement assumptions. The funding 
66.9 	requirements must be certified to the entity or entities associated with the fire department 
66.10 	whose active firefighters are covered by the retirement plan.
66.11 	(b) The overall funding balance of each lump-sum account for the current calendar 
66.12 	year must be determined in the following manner:
66.13 	(1) The total accrued liability for all active and deferred members of the account as 
66.14 	of December 31 of the current year must be calculated based on the good time service 
66.15 	credit of active and deferred members as of that date.
66.16 	(2) The total present assets of the account projected to December 31 of the current 
66.17 	year, including receipts by and disbursements from the account anticipated to occur on or 
66.18 	before December 31, must be calculated. To the extent possible, the market value of assets 
66.19 	must be utilized in making this calculation.
66.20 	(3) The amount of the total present assets calculated under clause (2) must be 
66.21 	subtracted from the amount of the total accrued liability calculated under clause (1). If the 
66.22 	amount of total present assets exceeds the amount of the total accrued liability, then the 
66.23 	account is considered to have a surplus over full funding. If the amount of the total present 
66.24 	assets is less than the amount of the total accrued liability, then the account is considered 
66.25 	to have a deficit from full funding. If the amount of total present assets is equal to the 
66.26 	amount of the total accrued liability, then the special fund is considered to be fully funded.
66.27 	(c) The financial requirements of each lump-sum account for the following calendar 
66.28 	year must be determined in the following manner:
66.29 	(1) The total accrued liability for all active and deferred members of the account 
66.30 	as of December 31 of the calendar year next following the current calendar year must be 
66.31 	calculated based on the good time service used in the calculation under paragraph (b), 
66.32 	clause (1), increased by one year.
66.33 	(2) The increase in the total accrued liability of the account for the following calendar 
66.34 	year over the total accrued liability of the account for the current year must be calculated.
67.1 	(3) The amount of anticipated future administrative expenses of the account must be 
67.2 	calculated by multiplying the dollar amount of the administrative expenses for the most 
67.3 	recent prior calendar year by the factor of 1.035.
67.4 	(4) If the account is fully funded, the financial requirement of the account for the 
67.5 	following calendar year is the total of the amounts calculated under clauses (2) and (3).
67.6 	(5) If the account has a deficit from full funding, the financial requirement of the 
67.7 	account for the following calendar year is the total of the amounts calculated under clauses 
67.8 	(2) and (3) plus an amount equal to one-tenth of the amount of the deficit from full 
67.9 	funding of the account.
67.10 	(6) If the account has a surplus over full funding, the financial requirement of 
67.11 	the account for the following calendar year is the financial requirement of the account 
67.12 	calculated as though the account was fully funded under clause (4) and, if the account has 
67.13 	also had a surplus over full funding during the prior two years, additionally reduced by an 
67.14 	amount equal to one-tenth of the amount of the surplus over full funding of the account.
67.15 	(d) The required contribution of the entity or entities associated with the fire 
67.16 	department whose active firefighters are covered by the lump-sum retirement plandivision 
67.17 	is the annual financial requirements of the lump-sum account of the retirement plan under 
67.18 	paragraph (c) reduced by the amount of any fire state aid payable under sections 69.011 to 
67.19 	69.051or police and firefighter retirement supplemental state aid payable under section 
67.20 	423A.022 that is reasonably anticipated to be received by the retirement plan attributable 
67.21 	to the entity or entities during the following calendar year, and an amount of interest on 
67.22 	the assets projected to be received during the following calendar year calculated at the 
67.23 	rate of six percent per annum. The required contribution must be allocated between the 
67.24 	entities if more than one entity is involved. A reasonable amount of anticipated fire state 
67.25 	aid is an amount that does not exceed the fire state aid actually received in the prior year 
67.26 	multiplied by the factor 1.035.
67.27 	(e) The required contribution calculated in paragraph (d) must be paid to the 
67.28 	retirement plan on or before December 31 of the year for which it was calculated. If 
67.29 	the contribution is not received by the retirement plan by December 31, it is payable 
67.30 	with interest at an annual compound rate of six percent from the date due until the date 
67.31 	payment is received by the retirement plan. If the entity does not pay the full amount of 
67.32 	the required contribution, the executive director shall collect the unpaid amount under 
67.33 	section 353.28, subdivision 6.
67.34 		Subd. 1a.Annual funding requirements; monthly benefit retirement division.
 67.35 	(a) Annually, the executive director shall determine the funding requirements of each 
68.1 	monthly benefit account in the voluntary statewide volunteer firefighter retirement plan on 
68.2 	or before August 1.
68.3 	(b) The executive director must determine the funding requirements of a monthly 
68.4 	benefit account under this subdivision from:
68.5 	(1) the most recent actuarial valuation normal cost, administrative expense, 
68.6 	including the cost of a regular actuarial valuation, and amortization results for the account 
68.7 	determined by the approved actuary retained by the retirement association under sections 
68.8 	356.215 and 356.216; and
68.9 	(2) the standards for actuarial work, utilizing a six percent interest rate actuarial 
68.10 	assumption and other actuarial assumptions approved under section 356.215, subdivision 
68.11 	18:
68.12 	(i) with that portion of any unfunded actuarial accrued liability attributable to a benefit 
68.13 	increase to be amortized over a period of 20 years from the date of the benefit change;
68.14 	(ii) with that portion of any unfunded actuarial accrued liability attributable to an 
68.15 	assumption change or an actuarial method change to be amortized over a period of 20 
68.16 	years from the date of the assumption or method change;
68.17 	(iii) with that portion of any unfunded actuarial accrued liability attributable to an 
68.18 	investment loss to be amortized over a period of ten years from the date of investment 
68.19 	loss; and
68.20 	(iv) with the balance of any net unfunded actuarial accrued liability to be amortized 
68.21 	over a period of five years from the date of the actuarial valuation.
68.22 	(c) The required contributions of the entity or entities associated with the fire 
68.23 	department whose active firefighters are covered by the monthly benefit retirement 
68.24 	division are the annual financial requirements of the monthly benefit account of the 
68.25 	retirement plan under paragraph (b) reduced by the amount of any fire state aid payable 
68.26 	under sections 69.011 to 69.051, or any police and firefighter retirement supplemental state 
68.27 	aid payable under section 423A.022, that is reasonably anticipated to be received by the 
68.28 	retirement plan attributable to the entity or entities during the following calendar year. 
68.29 	The required contribution must be allocated between the entities if more than one entity 
68.30 	is involved. A reasonable amount of anticipated fire state aid is an amount that does not 
68.31 	exceed the fire state aid actually received in the prior year multiplied by the factor 1.035.
68.32 	(d) The required contribution calculated in paragraph (c) must be paid to the 
68.33 	retirement plan on or before December 31 of the year for which it was calculated. If 
68.34 	the contribution is not received by the retirement plan by December 31, it is payable 
68.35 	with interest at an annual compound rate of six percent from the date due until the date 
68.36 	payment is received by the retirement plan. If the entity does not pay the full amount of 
69.1 	the required contribution, the executive director shall collect the unpaid amount under 
69.2 	section 353.28, subdivision 6.
69.3 		Subd. 2.Cash flow funding requirement. If the executive director determines 
69.4 	that ana lump-sum retirement or a monthly benefit retirement account in the voluntary 
69.5 	statewide lump-sum volunteer firefighter retirement plan has insufficient assets to meet the 
69.6 	service pensions determinedexpected to be payable from the account over the succeeding 
69.7 	two years, the executive director shall certify the amount of the potential service pension 
69.8 	shortfall to the municipality or municipalities and the municipality or municipalities shall 
69.9 	make an additional employer contribution to the account within ten days of the certification. 
69.10 	If more than one municipality is associated with the account, unless the municipalities agree 
69.11 	to and implement a different allocation, the municipalities shall allocate the additional 
69.12 	employer contribution one-half in proportion to the population of each municipality and 
69.13 	one-half in proportion to the estimated market value of the property of each municipality.
69.14 		Subd. 2a.Additional municipal contributions authorized. (a) At the discretion of 
69.15 	the municipality or the independent nonprofit firefighting corporation associated with a fire 
69.16 	department covered by a voluntary statewide lump-sum volunteer firefighter retirement 
69.17 	plan account, the municipality or the corporation may make additional contributions 
69.18 	to the applicable account.
69.19 	(b) The executive director of the Public Employees Retirement Association 
69.20 	may specify requirements as to the form, timing, and accompanying information for 
69.21 	contributions made under this subdivision.
69.22 	(c) Any contributions made under this subdivision must be included as total present 
69.23 	assets of the account for the calculation of any subsequent annual funding requirements 
69.24 	for the account under subdivision 1 or 1a or for the calculation of any cash flow funding 
69.25 	requirement under subdivision 2.
69.26 		Subd. 3.Authorized account disbursements.  The assets of a lump-sum retirement 
69.27 	account or of a monthly benefit retirement account of the retirement fund may only be 
69.28 	disbursed for:
69.29 	(1) the administrative expenses of the retirement plan;
69.30 	(2) the investment expenses of the retirement fund;
69.31 	(3) the service pensions payable under section 353G.10, 353G.11, 353G.14, or 
69.32 	353G.15;
69.33 	(4) the survivor benefits payable under section 353G.12; and
69.34 	(5) the disability benefit coverage insurance premiums under section 353G.115.

70.1 	Sec. 18. Minnesota Statutes 2014, section 353G.09, is amended to read:
70.2 	353G.09 RETIREMENT BENEFIT ELIGIBILITY.
70.3 		Subdivision 1.Entitlement. Except as provided in subdivision 3, an active member 
70.4 	of the retirement plan is entitled to a lump-sum service pension from the retirement plan 
70.5 	if the person:
70.6 	(1) has separated from active service with the fire department for at least 30 days;
70.7 	(2) has attained the age of at least 50 years;
70.8 	(3) has completed at least five years of good time service credit as a member of the 
70.9 	retirement plan if the person is a member of the lump-sum retirement division or has 
70.10 	completed at least the minimum number of years of good time service credit as a member 
70.11 	of the retirement plan specified in the retirement benefit plan document attributable to the 
70.12 	applicable fire department if the person is a member of the monthly benefit retirement 
70.13 	division; and
70.14 	(4) applies in a manner prescribed by the executive director for the service pension.
70.15 		Subd. 2.Vesting schedule; nonforfeitable portion of service pension. (a) If an 
70.16 	active member of the lump-sum retirement division has completed less than 20 years of 
70.17 	good time service credit as a member of the lump-sum retirement division of the plan, the 
70.18 	person's entitlement to a service pension is equal to the nonforfeitable percentage of the 
70.19 	applicable service pension amount, as follows:

70.20
70.21		Completed years of good time 
service credit
	Nonforfeitable percentage of the 
service pension
	
70.22			5
		40 percent
	
70.23			6
		44 percent
	
70.24			7
		48 percent
	
70.25			8
		52 percent
	
70.26			9
		56 percent
	
70.27			10
		60 percent
	
70.28			11
		64 percent
	
70.29			12
		68 percent
	
70.30			13
		72 percent
	
70.31			14
		76 percent
	
70.32			15
		80 percent
	
70.33			16
		84 percent
	
70.34			17
		88 percent
	
70.35			18
		92 percent
	
70.36			19
		96 percent
	
70.37			20 and thereafter
		100 percent
	
70.38 	(b) If an active member of the monthly benefit retirement division has completed less 
70.39 	than 20 years of good time service credit as a member of the monthly benefit retirement 
71.1 	division of the plan, the person's entitlement to a service pension must be governed by the 
71.2 	retirement benefit plan document attributable to the applicable fire department.
71.3 		Subd. 3.Alternative lump-sum pension eligibility and computation. (a) An 
71.4 	active member of the lump-sum retirement division of the retirement plan is entitled to an 
71.5 	alternative lump-sum service pension from the retirement plan if the person:
71.6 	(1) has separated from active service with the fire department for at least 30 days;
71.7 	(2) has attained the age of at least 50 years or the age for receipt of a service pension 
71.8 	under the benefit plan of the applicable former volunteer firefighters relief association as 
71.9 	of the date immediately prior to the election of the retirement coverage change, whichever 
71.10 	is later;
71.11 	(3) has completed at least five years of active service with the fire department and 
71.12 	at least five years in total as a member of the applicable former volunteer firefighters 
71.13 	relief association or of the lump-sum retirement division of the retirement plan, but has 
71.14 	not rendered at least five years of good time service credit as a member of the lump-sum 
71.15 	retirement division of the plan; and
71.16 	(4) applies in a manner prescribed by the executive director for the service pension.
71.17 	(b) If retirement coverage prior to statewide retirement plan coverage was provided 
71.18 	by a defined benefit lump-sum retirement plan volunteer firefighters relief association, 
71.19 	the alternative lump-sum service pension is the service pension amount specified in the 
71.20 	bylaws of the applicable former volunteer firefighters relief association either as of the 
71.21 	date immediately prior tobefore the election of the retirement coverage change or as of 
71.22 	the date immediately before the termination of firefighting services, whichever is earlier, 
71.23 	multiplied by the total number of years of service as a member of that volunteer firefighters 
71.24 	relief association and as a member of the retirement plan. If retirement coverage prior to 
71.25 	before statewide retirement plan coverage was provided by a defined contribution plan 
71.26 	volunteer firefighters relief association, the alternative lump-sum service pension is an 
71.27 	amount equal to the person's account balance as of the date immediately prior tobefore 
71.28 	the date on which statewide retirement plan coverage was first provided to the person plus 
71.29 	six percent annual compound interest from that date until the date immediately prior 
71.30 	tobefore the date of retirement.

71.31 	Sec. 19. Minnesota Statutes 2014, section 353G.10, is amended to read:
71.32 	353G.10 DEFERRED SERVICE PENSION AMOUNT.
71.33 	A person who was an active member of a fire department covered by either the 
71.34 	lump-sum retirement division or the monthly benefit retirement division of the retirement 
71.35 	plan who has separated from active firefighting service for at least 30 days and who has 
72.1 	completed at least five years of good time service credit, but has not attained the age of 50 
72.2 	years, is entitled to a deferred service pension on or after attaining the age of 50 years 
72.3 	and applying in a manner specified by the executive director for the service pension. The 
72.4 	service pension payable is the nonforfeitable percentage of the service pension under 
72.5 	section 353G.09, subdivision 2, and is payable without any interest on or increase in the 
72.6 	service pension over the period of deferral.

72.7 	Sec. 20. Minnesota Statutes 2014, section 353G.11, is amended to read:
72.8 	353G.11 LUMP-SUM RETIREMENT DIVISION SERVICE PENSION 
72.9 	LEVELS.
72.10 		Subdivision 1.Levels; lump-sum retirement division. The lump-sum retirement 
72.11 	division of the retirement plan provides the following levels of service pension amounts to 
72.12 	be selected at the election of coverage, or, if fully funded, thereafter:

72.13		Level A
	$500 per year of good time service credit
	
72.14		Level B
	$600 per year of good time service credit
	
72.15		Level C
	$700 per year of good time service credit
	
72.16		Level D
	$800 per year of good time service credit
	
72.17		Level E
	$900 per year of good time service credit
	
72.18		Level F
	$1,000 per year of good time service credit
	
72.19		Level G
	$1,250 per year of good time service credit
	
72.20		Level H
	$1,500 per year of good time service credit
	
72.21		Level I
	$2,000 per year of good time service credit
	
72.22		Level J
	$2,500 per year of good time service credit
	
72.23		Level K
	$3,000 per year of good time service credit
	
72.24		Level L
	$3,500 per year of good time service credit
	
72.25		Level M
	$4,000 per year of good time service credit
	
72.26		Level N
	$4,500 per year of good time service credit
	
72.27		Level O
	$5,000 per year of good time service credit
	
72.28		Level P
	$5,500 per year of good time service credit
	
72.29		Level Q
	$6,000 per year of good time service credit
	
72.30		Level R
	$6,500 per year of good time service credit
	
72.31		Level S
	$7,000 per year of good time service credit
	
72.32		Level T
	$7,500 per year of good time service credit
	
72.33 		Subd. 1a.Continuation of prior lump-sum service pension levels. If a 
72.34 	municipality or independent nonprofit firefighting corporation electselected to be covered 
72.35 	by the lump-sum retirement division of the retirement plan prior tobefore January 1, 
72.36 	2010, and selects selected the $750 per year of good time service credit service pension 
72.37 	amount effective for January 1, 2010, that level continues for the volunteer firefighters of 
73.1 	that municipality or independent nonprofit firefighting corporation until a different service 
73.2 	pension amount is selected under subdivision 2 after January 1, 2010.
73.3 		Subd. 2.Lump-sum retirement division level selection. At the time of the election 
73.4 	to transfer retirement coverage to the lump-sum retirement division of the retirement plan, 
73.5 	or on April 30 thereafter, the governing body or bodies of the entity or entities operating 
73.6 	the fire department whose firefighters are covered by the retirement plan may request 
73.7 	a cost estimate from the executive director of an increase in the service pension level 
73.8 	applicable to the active firefighters of the fire department. Within 90 days of the receipt of 
73.9 	the cost estimate prepared by the executive director using a procedure certified as accurate 
73.10 	by the approved actuary retained by the Public Employees Retirement Association, the 
73.11 	governing body or bodies may approve the service pension level change, effective for the 
73.12 	following calendar year. If not approved in a timely fashion, the service pension level 
73.13 	change is considered to have been disapproved.
73.14 		Subd. 3.Supplemental benefit. The lump-sum retirement account of the retirement 
73.15 	plan also shall pay a supplemental benefit as provided for in section 424A.10.
73.16 		Subd. 4.Ancillary benefits. Except as provided in section 353G.115 or 353G.12, 
73.17 	no disability, death, funeral, or other ancillary benefit beyond a service pension or a 
73.18 	survivor benefit is payable from the lump-sum retirement account of the retirement plan.

73.19 	Sec. 21. [353G.112] MONTHLY BENEFIT RETIREMENT DIVISION SERVICE 
73.20 	PENSION LEVELS.
73.21 	The service pension amount for the firefighters of a fire department covered by the 
73.22 	monthly benefit retirement division of the retirement plan is the amount specified in the 
73.23 	retirement benefit plan document applicable to the fire department.

73.24 	Sec. 22. Minnesota Statutes 2014, section 353G.115, is amended to read:
73.25 	353G.115 DISABILITY BENEFIT COVERAGE; AUTHORITY FOR 
73.26 	CASUALTY INSURANCE.
73.27 	(a) Except as provided in paragraph (b) or (c), no disability benefit is payable from 
73.28 	the statewide retirement plan.
73.29 	(b) If the board approves the arrangement, disability coverage for the lump-sum 
73.30 	retirement division of the statewide retirement plan members may be provided through 
73.31 	a group disability insurance policy obtained from an insurance company licensed to do 
73.32 	business in this state. The lump-sum retirement account of the voluntary statewide 
73.33 	lump-sum volunteer firefighter retirement plan is authorized to pay the premium for the 
73.34 	disability insurance authorized by this paragraph. The proportional amount of the total 
74.1 	annual disability insurance premium must be added to the required contribution amount 
74.2 	determined under section 353G.08.
74.3 	(c) The disability benefit coverage for the monthly benefit retirement division is 
74.4 	the disability service pension amount specified in the retirement benefit plan document 
74.5 	applicable to the fire department, applicable former volunteer firefighters relief association 
74.6 	in effect as of the last day before the date on which retirement coverage transferred to the 
74.7 	voluntary statewide volunteer firefighter retirement plan, subject to all conditions and 
74.8 	limitations in the disability service pension specified therein.

74.9 	Sec. 23. Minnesota Statutes 2014, section 353G.12, subdivision 2, is amended to read:
74.10 		Subd. 2.Lump-sum retirement plan; survivor benefit amount. The amount of 
74.11 	the survivor benefit for the lump-sum retirement division is the amount of the lump-sum 
74.12 	service pension that would have been payable to the member of the lump-sum retirement 
74.13 	plandivision on the date of death if the member had been age 50 or older on that date.

74.14 	Sec. 24. Minnesota Statutes 2014, section 353G.12, is amended by adding a 
74.15 	subdivision to read:
74.16 		Subd. 3.Monthly benefit retirement plan; survivor benefit amount. The amount 
74.17 	of the survivor benefit for the monthly benefit retirement division is the survivor service 
74.18 	pension amount specified in the retirement benefit plan document applicable to the fire 
74.19 	department, subject to all conditions and limitations for the benefit specified therein.

74.20 	Sec. 25. [353G.121] MONTHLY BENEFIT RETIREMENT DIVISION; 
74.21 	POST-TRANSFER BENEFIT PLAN DOCUMENT MODIFICATIONS.
74.22 	(a) The fire chief of a fire department that has an active membership who are covered 
74.23 	by the monthly benefit retirement division of the statewide retirement plan may initiate the 
74.24 	process of modifying the retirement benefit plan document under this section.
74.25 	(b) The modification procedure is initiated when the applicable fire chief files with 
74.26 	the executive director of the Public Employees Retirement Association a written summary 
74.27 	of the desired benefit plan document modification, the proposed benefit plan document 
74.28 	modification language, a written request for the preparation of an actuarial cost estimate 
74.29 	for the proposed benefit plan document modification, and payment of the estimated cost of 
74.30 	the actuarial cost estimate.
74.31 	(c) Upon receipt of the modification request and related documents, the executive 
74.32 	director shall review the language of the proposed benefit plan document modification 
74.33 	and, if a clarification is needed in the submitted language, shall inform the fire chief 
75.1 	of the necessary clarification. Once the proposed benefit plan document modification 
75.2 	language has been clarified by the fire chief and resubmitted to the executive director, the 
75.3 	executive director shall arrange for the approved actuary retained by the Public Employees 
75.4 	Retirement Association to prepare a benefit plan document modification cost estimate 
75.5 	under the applicable provisions of section 356.215 and of the standards for actuarial work 
75.6 	adopted by the Legislative Commission on Pensions and Retirement. Upon completion of 
75.7 	the benefit plan document modification cost estimate, the executive director shall forward 
75.8 	the estimate to the fire chief who requested it and to the chief financial officer of the 
75.9 	municipality or entity with which the fire department is primarily associated.
75.10 	(d) The fire chief, upon receipt of the cost estimate, shall circulate the cost estimate 
75.11 	with the active firefighters in the fire department and shall take reasonable steps to provide 
75.12 	the estimate results to any affected retired members of the fire department and their 
75.13 	beneficiaries. The chief financial officer of the municipality or entity associated with the 
75.14 	fire department shall present the proposed modification language and the cost estimate to 
75.15 	the governing body of the municipality or entity for its consideration at a public hearing 
75.16 	held for that purpose.
75.17 	(e) If the governing body of the municipality or entity approves the modification 
75.18 	language, the chief administrative officer of the municipality or entity shall notify the 
75.19 	executive director of the Public Employees Retirement Association of that approval. The 
75.20 	benefit plan document modification is effective on the January 1 next following the date of 
75.21 	filing the approval with the Public Employees Retirement Association and the state auditor.

75.22 	Sec. 26. Minnesota Statutes 2014, section 353G.13, is amended to read:
75.23 	353G.13 LUMP-SUM RETIREMENT DIVISION; PORTABILITY.
75.24 		Subdivision 1.Eligibility. An active firefighter who is a member of the lump-sum 
75.25 	retirement division of the retirement plan who also renders firefighting service and has 
75.26 	good time service credit in the lump-sum retirement division of the retirement plan from 
75.27 	another fire department, if the good time service credit in the plan from a combination of 
75.28 	periods totals at least five years, is eligible, upon complying with the other requirements of 
75.29 	section 353G.09, to receive a lump-sum service pension upon filing an application in the 
75.30 	manner prescribed by the executive director, computed as provided in subdivision 2.
75.31 		Subd. 2.Combined service pension computation. The lump-sum service pension 
75.32 	payable to a firefighter who qualifies under subdivision 1 is the per year of good time 
75.33 	lump-sum service credit service pension amount in effect for each lump-sum retirement 
75.34 	account in which the firefighter has good time service credit as of the date on which the 
75.35 	firefighter terminated active service with the fire department associated with the applicable 
76.1 	account, multiplied by the number of years of good time service credit that the firefighter 
76.2 	has in the applicable account.
76.3 		Subd. 3.Payment. A lump-sum service pension under this section must be paid 
76.4 	in a single payment, with the applicable portion of the total lump-sum service pension 
76.5 	payment amount deducted from each lump-sum retirement account.

76.6 	Sec. 27. Minnesota Statutes 2014, section 353G.14, is amended to read:
76.7 	353G.14 PURCHASE OF ANNUITY CONTRACTS.
76.8 	The executive director may purchase an annuity contract on behalf of a retiring 
76.9 	firefighter retiring from the lump-sum retirement division of the statewide retirement 
76.10 	plan with a total premium payment in an amount equal to the lump-sum service pension 
76.11 	payable under section 353G.09 if the purchase was requested by the retiring firefighter in a 
76.12 	manner prescribed by the executive director. The annuity contract must be purchased from 
76.13 	an insurance carrier that is licensed to do business in this state. If purchased, the annuity 
76.14 	contract is in lieu of any service pension or other benefit from the lump-sum retirement 
76.15 	plan of the retirement plan. The annuity contract may be purchased at any time after the 
76.16 	volunteer firefighter discontinues active service, but the annuity contract must stipulate that 
76.17 	no annuity amounts are payable before the former volunteer firefighter attains the age of 50.

76.18 	Sec. 28. Minnesota Statutes 2014, section 353G.15, is amended to read:
76.19 	353G.15 INDIVIDUAL RETIREMENT ACCOUNT TRANSFER.
76.20 	Upon receipt of a determination that the voluntary statewide volunteer firefighter 
76.21 	retirement plan is a qualified pension plan under section 401(a) of the Internal Revenue 
76.22 	Code, as amended, the executive director, upon request, shall transfer thea lump-sum 
76.23 	service pension amount under sections 353G.08 and 353G.11 of a former volunteer 
76.24 	firefighter who has terminated active firefighting services covered by the lump-sum 
76.25 	retirement division of the statewide plan and who has attained the age of at least 50 years 
76.26 	to the person's individual retirement account under section 408(a) of the federal Internal 
76.27 	Revenue Code, as amended. The transfer request must be in a manner prescribed by the 
76.28 	executive director and must be filed by the former volunteer firefighter who has sufficient 
76.29 	service credit to be entitled to a service pension or, following the death of a participating 
76.30 	active firefighter, must be filed by the deceased firefighter's surviving spouse.

76.31 	Sec. 29. Minnesota Statutes 2014, section 353G.16, is amended to read:
76.32 	353G.16 EXEMPTION FROM PROCESS.
77.1 	The provisions of section 356.401 apply to the voluntary statewide volunteer 
77.2 	firefighter retirement plan.

77.3 	Sec. 30. Minnesota Statutes 2014, section 356.215, subdivision 8, is amended to read:
77.4 		Subd. 8.Interest and salary assumptions. (a) The actuarial valuation must use the 
77.5 	applicable following interest assumption:
77.6 	(1) select and ultimate interest rate assumption

77.7
77.8	plan
	ultimate interest 
rate assumption
		
77.9	general state employees retirement plan
	8.5%
		
77.10	correctional state employees retirement plan
	8.5
		
77.11	State Patrol retirement plan
	8.5
		
77.12
77.13
77.14	legislators retirement plan, and for the 
constitutional officers calculation of total plan 
liabilities 
	0 
		
77.15	judges retirement plan
	8.5
		
77.16	general public employees retirement plan
	8.5
		
77.17	public employees police and fire retirement plan
	8.5
		
77.18
77.19	local government correctional service 
retirement plan
	8.5
		
77.20	teachers retirement plan
	8.5
		
77.21	St. Paul teachers retirement plan
	8.5
		
77.22 	Except for the legislators retirement plan and the constitutional officers calculation 
77.23 	of total plan liabilities, the select preretirement interest rate assumption for the period after 
77.24 	June 30, 2012, through June 30, 2017, is 8 percent.
77.25 	(2) single rate interest rate assumption

77.26
77.27	plan
	interest rate 
assumption
		
77.28	Bloomington Fire Department Relief Association
	6
		
77.29
77.30	local monthly benefit volunteer firefighters relief 
associations
	5
		
77.31
77.32	monthly benefit retirement plans in the statewide 
volunteer firefighter retirement plan
	6
		
77.33 	(b)(1) If funding stability has been attained, the valuation must use a postretirement 
77.34 	adjustment rate actuarial assumption equal to the postretirement adjustment rate specified 
77.35 	in section 354A.27, subdivision 7; 354A.29, subdivision 9; or 356.415, subdivision 1, 
77.36 	whichever applies.
77.37 	(2) If funding stability has not been attained, the valuation must use a select 
77.38 	postretirement adjustment rate actuarial assumption equal to the postretirement adjustment 
77.39 	rate specified in section 354A.27, subdivision 6a; 354A.29, subdivision 8; or 356.415, 
77.40 	subdivision 1a, 1b, 1c, 1d, 1e, or 1f, whichever applies, for a period ending when the 
78.1 	approved actuary estimates that the plan will attain the defined funding stability measure, 
78.2 	and thereafter an ultimate postretirement adjustment rate actuarial assumption equal 
78.3 	to the postretirement adjustment rate under section 354A.27, subdivision 7; 354A.29, 
78.4 	subdivision 9; or 356.415, subdivision 1, for the applicable period or periods beginning 
78.5 	when funding stability is projected to be attained.
78.6 	(c) The actuarial valuation must use the applicable following single rate future salary 
78.7 	increase assumption, the applicable following modified single rate future salary increase 
78.8 	assumption, or the applicable following graded rate future salary increase assumption:
78.9 	(1) single rate future salary increase assumption

78.10	plan
	future salary increase assumption
	
78.11	legislators retirement plan
		5%
	
78.12	judges retirement plan
		3 
	
78.13
78.14	Bloomington Fire Department Relief 
Association
		4
	
78.15 	(2) age-related future salary increase age-related select and ultimate future salary 
78.16 	increase assumption or graded rate future salary increase assumption

78.17	plan
	future salary increase assumption
	
78.18	local government correctional service retirement plan
	assumption B
	
78.19	St. Paul teachers retirement plan
	assumption A
	
78.20 	For plans other than the St. Paul teachers 
78.21 	retirement plan and the local government 
78.22 	correctional service retirement plan, the 
78.23 	select calculation is: during the designated 
78.24 	select period, a designated percentage rate 
78.25 	is multiplied by the result of the designated 
78.26 	integer minus T, where T is the number of 
78.27 	completed years of service, and is added 
78.28 	to the applicable future salary increase 
78.29 	assumption. The designated select period 
78.30 	is ten years and the designated integer is 
78.31 	ten for the local government correctional 
78.32 	service retirement plan and 15 for the St. 
78.33 	Paul Teachers Retirement Fund Association. 
78.34 	The designated percentage rate is 0.2 percent 
78.35 	for the St. Paul Teachers Retirement Fund 
78.36 	Association.
78.37 	The ultimate future salary increase assumption is:

79.1	age
	A
	B
		
79.2	16
	5.9%
	9%
		
79.3	17
	5.9
	9
		
79.4	18
	5.9
	9
		
79.5	19
	5.9
	9
		
79.6	20
	5.9
	9
		
79.7	21
	5.9
	8.75
		
79.8	22
	5.9
	8.5
		
79.9	23
	5.85
	8.25
		
79.10	24
	5.8
	8
		
79.11	25
	5.75
	7.75
		
79.12	26
	5.7
	7.5
		
79.13	27
	5.65
	7.25
		
79.14	28
	5.6
	7
		
79.15	29
	5.55
	6.75
		
79.16	30
	5.5
	6.75
		
79.17	31
	5.45
	6.5
		
79.18	32
	5.4
	6.5
		
79.19	33
	5.35
	6.5
		
79.20	34
	5.3
	6.25
		
79.21	35
	5.25
	6.25
		
79.22	36
	5.2
	6
		
79.23	37
	5.15
	6
		
79.24	38
	5.1
	6
		
79.25	39
	5.05
	5.75
		
79.26	40
	5
	5.75
		
79.27	41
	4.95
	5.75
		
79.28	42
	4.9
	5.5
		
79.29	43
	4.85
	5.25
		
79.30	44
	4.8
	5.25
		
79.31	45
	4.75
	5
		
79.32	46
	4.7
	5
		
79.33	47
	4.65
	5
		
79.34	48
	4.6
	5
		
79.35	49
	4.55
	5
		
79.36	50
	4.5
	5
		
79.37	51
	4.45
	5
		
79.38	52
	4.4
	5
		
79.39	53
	4.35
	5
		
79.40	54
	4.3
	5
		
79.41	55
	4.25
	4.75
		
79.42	56
	4.2
	4.75
		
79.43	57
	4.15
	4.5
		
80.1	58
	4.1
	4.25
		
80.2	59
	4.05
	4.25
		
80.3	60
	4
	4.25
		
80.4	61
	4
	4.25
		
80.5	62
	4
	4.25
		
80.6	63
	4
	4.25
		
80.7	64
	4
	4.25
		
80.8	65
	4
	4
		
80.9	66
	4
	4
		
80.10	67
	4
	4
		
80.11	68
	4
	4
		
80.12	69
	4
	4
		
80.13	70
	4
	4
		
80.14 	(3) service-related ultimate future salary increase assumption

80.15
80.16	general state employees retirement plan of the 
Minnesota State Retirement System
	assumption A
	
80.17
80.18	general employees retirement plan of the Public 
Employees Retirement Association
	assumption B
	
80.19	Teachers Retirement Association
	assumption C
	
80.20	public employees police and fire retirement plan
	assumption D
	
80.21	State Patrol retirement plan
	assumption E
	
80.22
80.23	correctional state employees retirement plan of the 
Minnesota State Retirement System
	assumption F

80.24
80.25	service 
length
	A
	B
	C
	D
	E
	F
	
80.26	1
	10.5%
	12.03%
	12%
	13%
	8%
	6%
	
80.27	2
	8.1
	8.9
	9
	11
	7.5
	5.85
	
80.28	3
	6.9
	7.46
	8
	9
	7
	5.7
	
80.29	4
	6.2
	6.58
	7.5
	8
	6.75
	5.55
	
80.30	5
	5.7
	5.97
	7.25
	6.5
	6.5
	5.4
	
80.31	6
	5.3
	5.52
	7
	6.1
	6.25
	5.25
	
80.32	7
	5
	5.16
	6.85
	5.8
	6
	5.1
	
80.33	8
	4.7
	4.87
	6.7
	5.6
	5.85
	4.95
	
80.34	9
	4.5
	4.63
	6.55
	5.4
	5.7
	4.8
	
80.35	10
	4.4
	4.42
	6.4
	5.3
	5.55
	4.65
	
80.36	11
	4.2
	4.24
	6.25
	5.2
	5.4
	4.55
	
80.37	12
	4.1
	4.08
	6
	5.1
	5.25
	4.45
	
80.38	13
	4
	3.94
	5.75
	5
	5.1
	4.35
	
80.39	14
	3.8
	3.82
	5.5
	4.9
	4.95
	4.25
	
80.40	15
	3.7
	3.7
	5.25
	4.8
	4.8
	4.15
	
80.41	16
	3.6
	3.6
	5
	4.8
	4.65
	4.05
	
80.42	17
	3.5
	3.51
	4.75
	4.8
	4.5
	3.95
	
80.43	18
	3.5
	3.5
	4.5
	4.8
	4.35
	3.85
	
81.1	19
	3.5
	3.5
	4.25
	4.8
	4.2
	3.75
	
81.2	20
	3.5
	3.5
	4
	4.8
	4.05
	3.75
	
81.3	21
	3.5
	3.5
	3.9
	4.7
	4
	3.75
	
81.4	22
	3.5
	3.5
	3.8
	4.6
	4
	3.75
	
81.5	23
	3.5
	3.5
	3.7
	4.5
	4
	3.75
	
81.6	24
	3.5
	3.5
	3.6
	4.5
	4
	3.75
	
81.7	25
	3.5
	3.5
	3.5
	4.5
	4
	3.75
	
81.8	26
	3.5
	3.5
	3.5
	4.5
	4
	3.75
	
81.9	27
	3.5
	3.5
	3.5
	4.5
	4
	3.75
	
81.10	28
	3.5
	3.5
	3.5
	4.5
	4
	3.75
	
81.11	29
	3.5
	3.5
	3.5
	4.5
	4
	3.75
	
81.12	30 or more
	3.5
	3.5
	3.5
	4.5
	4
	3.75
	
81.13 	(d) The actuarial valuation must use the applicable following payroll growth 
81.14 	assumption for calculating the amortization requirement for the unfunded actuarial 
81.15 	accrued liability where the amortization retirement is calculated as a level percentage 
81.16 	of an increasing payroll:

81.17	plan
	payroll growth assumption
	
81.18
81.19	general state employees retirement plan of the 
Minnesota State Retirement System
	3.75%
	
81.20	correctional state employees retirement plan
	3.75
	
81.21	State Patrol retirement plan
	3.75
	
81.22	judges retirement plan
	3
	
81.23
81.24	general employees retirement plan of the Public 
Employees Retirement Association
	3.75
	
81.25	public employees police and fire retirement plan
	3.75
	
81.26	local government correctional service retirement plan
	3.75
	
81.27	teachers retirement plan
	3.75
	
81.28	St. Paul teachers retirement plan
	4
	
81.29 	(e) The assumptions set forth in paragraphs (c) and (d) continue to apply, unless a 
81.30 	different salary assumption or a different payroll increase assumption:
81.31 	(1) has been proposed by the governing board of the applicable retirement plan;
81.32 	(2) is accompanied by the concurring recommendation of the actuary retained under 
81.33 	section 356.214, subdivision 1, if applicable, or by the approved actuary preparing the 
81.34 	most recent actuarial valuation report if section 356.214 does not apply; and
81.35 	(3) has been approved or deemed approved under subdivision 18.

81.36 	EFFECTIVE DATE. This section is effective June 30, 2015.

81.37 	Sec. 31. EFFECTIVE DATE.
 81.38 	Unless otherwise specified, this article is effective July 1, 2015.

82.1 	ARTICLE 9
82.2 	VOLUNTEER FIREFIGHTER RELIEF ASSOCIATION WORKING 
82.3 	GROUP RECOMMENDATIONS

82.4 	Section 1. Minnesota Statutes 2014, section 69.051, subdivision 1a, is amended to read:
82.5 		Subd. 1a.Financial statement. (a) The board of each volunteer firefighters relief 
82.6 	association, as defined in section 424A.001, subdivision 4, that is not required to file a 
82.7 	financial report and audit under subdivision 1 must prepare a detailed statement of the 
82.8 	financial affairs for the preceding fiscal year of the relief association's special and general 
82.9 	funds in the style and form prescribed by the state auditor. The detailed statement must 
82.10 	show:
82.11 	(1) the sources and amounts of all money received;
82.12 	(2) all disbursements, accounts payable and accounts receivable;
82.13 	(3) the amount of money remaining in the treasury;
82.14 	(4) total assets, including a listing of all investments;
82.15 	(5) the accrued liabilities; and
82.16 	(6) all other items necessary to show accurately the revenues and expenditures and 
82.17 	financial position of the relief association.
82.18 	(b) The detailed financial statement of the special and general funds required under 
82.19 	paragraph (a) must be certified by a certified public accountant or by the state auditor. In 
82.20 	addition to certifying the financial condition of the special and general funds of the relief 
82.21 	association, the accountant or auditor conducting the examination shall give an opinion 
82.22 	as to the condition of the special and general funds of the relief association, and shall 
82.23 	comment upon any exceptions to the report in accordance with agreed-upon procedures 
82.24 	and forms prescribed by the state auditor. The accountant must have at least five years of 
82.25 	public accounting, auditing, or similar experience, and must not be an active, inactive, or 
82.26 	retired member of the relief association or the fire department.
82.27 	(c) The detailed financial statement required under paragraph (a) must be 
82.28 	countersigned by:
82.29 	(1) the municipal clerk or clerk-treasurer of the municipality; or
82.30 	(2) where applicable, by the municipal clerk or clerk-treasurer of the largest 
82.31 	municipality in population which contracts with the independent nonprofit firefighting 
82.32 	corporation if the relief association is a subsidiary of an independent nonprofit firefighting 
82.33 	corporation and by the secretary of the independent nonprofit firefighting corporation; or
83.1 	(3) by the chief financial official of the county in which the volunteer firefighter 
83.2 	relief association is located or primarily located if the relief association is associated with 
83.3 	a fire department that is not located in or associated with an organized municipality.
83.4 	(d) The volunteer firefighters' relief association board must file the detailed financial 
83.5 	statement required under paragraph (a) in the relief association office for public inspection 
83.6 	and present it to the governing body of the municipality within 45 days after the close of 
83.7 	the fiscal year, and must submit a copy of the certified detailed financial statement to the 
83.8 	state auditor within 90 days of the close of the fiscal year.
83.9 	(e) A certified public accountant or auditor who performs the agreed-upon 
83.10 	procedures under paragraph (b) is subject to the reporting requirements of section 6.67.

83.11 	EFFECTIVE DATE. This section is effective July 1, 2015, and applies to financial 
83.12 	statements prepared for calendar year 2015 and thereafter.

83.13 	Sec. 2. Minnesota Statutes 2014, section 69.80, is amended to read:
83.14 	69.80 AUTHORIZED ADMINISTRATIVE EXPENSES.
83.15 	(a) Notwithstanding any provision of law to the contrary, the payment of the 
83.16 	following necessary, reasonable and direct expenses of maintaining, protecting and 
83.17 	administering the special fund, when provided for in the bylaws of the association and 
83.18 	approved by the board of trustees, constitutes authorized administrative expenses of a 
83.19 	volunteer firefighters' relief association organized under any law of this state or the 
83.20 	Bloomington Fire Department Relief Association:
83.21 	(1) office expense, including, but not limited to, rent, utilities, equipment, supplies, 
83.22 	postage, periodical subscriptions, furniture, fixtures, and salaries of administrative 
83.23 	personnel;
83.24 	(2) salaries of the officers of the association, or their designees, and salaries of the 
83.25 	members of the board of trustees of the association if the salary amounts are approved by 
83.26 	the governing body of the entity that is responsible for meeting any minimum obligation 
83.27 	under section 424A.092 or 424A.093, or Laws 2013, chapter 111, article 5, sections 31 to 
83.28 	42, and the itemized expenses of relief association officers and board members that are 
83.29 	incurred as a result of fulfilling their responsibilities as administrators of the special fund;
83.30 	(3) tuition, registration fees, organizational dues, and other authorized expenses 
83.31 	of the officers or members of the board of trustees incurred in attending educational 
83.32 	conferences, seminars, or classes relating to the administration of the relief association;
83.33 	(4) audit,and audit-related services, accounting and accounting-related services, and 
83.34 	actuarial, medical, legal, and investment and performance evaluation expenses;
84.1 	(5) filing and application fees payable by the relief association to federal or other 
84.2 	governmental entities;
84.3 	(6) reimbursement to the officers and members of the board of trustees, or their 
84.4 	designees, for reasonable and necessary expenses actually paid and incurred in the 
84.5 	performance of their duties as officers or members of the board; and
84.6 	(7) premiums on fiduciary liability insurance and official bonds for the officers, 
84.7 	members of the board of trustees, and employees of the relief association.
84.8 	(b) Any other expenses of the relief association must be paid from the general fund 
84.9 	of the association, if one exists. If a relief association has only one fund, that fund is the 
84.10 	special fund for purposes of this section. If a relief association has a special fund and 
84.11 	a general fund, and any expense of the relief association that is directly related to the 
84.12 	purposes for which both funds were established, the payment of that expense must be 
84.13 	apportioned between the two funds on the basis of the benefits derived by each fund.

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

84.15 	Sec. 3. Minnesota Statutes 2014, section 424A.001, is amended by adding a 
84.16 	subdivision to read:
84.17 		Subd. 12.Membership start date. Membership in a volunteer firefighters relief 
84.18 	association begins upon the date of hire by a municipality, a joint powers board, or an 
84.19 	independent nonprofit firefighting corporation with which the relief association is directly 
84.20 	associated, unless otherwise specified in the relief association bylaws.

84.21 	EFFECTIVE DATE. This section is effective January 1, 2016.

84.22 	Sec. 4. Minnesota Statutes 2014, section 424A.002, subdivision 1, is amended to read:
84.23 		Subdivision 1.Authorization. A municipal fire department or an independent 
84.24 	nonprofit firefighting corporation, with approval by the applicable municipality or 
84.25 	municipalities, may establish a new volunteer firefighters relief association or may retain 
84.26 	an existing volunteer firefighters relief association. A municipal fire department or an 
84.27 	independent nonprofit firefighting corporation may be associated with only one volunteer 
84.28 	firefighters relief association at one time.

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

84.30 	Sec. 5. Minnesota Statutes 2014, section 424A.016, subdivision 4, is amended to read:
84.31 		Subd. 4.Individual accounts. (a) An individual account must be established for 
84.32 	each firefighter who is a member of the relief association.
85.1 	(b) To each individual active member account must be credited an equal share of:
85.2 	(1) any amounts of fire state aid and police and firefighter retirement supplemental 
85.3 	state aid received by the relief association;
85.4 	(2) any amounts of municipal contributions to the relief association raised from 
85.5 	levies on real estate or from other available municipal revenue sources exclusive of fire 
85.6 	state aid; and
85.7 	(3) any amounts equal to the share of the assets of the special fund to the credit of:
85.8 	(i) any former member who terminated active service with the fire department to 
85.9 	which the relief association is associated before meeting the minimum service requirement 
85.10 	provided for in subdivision 2, paragraph (b), and has not returned to active service with 
85.11 	the fire department for a period no shorter than five years; or
85.12 	(ii) any retired member who retired before obtaining a full nonforfeitable interest in 
85.13 	the amounts credited to the individual member account under subdivision 2, paragraph 
85.14 	(b), and any applicable provision of the bylaws of the relief association. In addition, any 
85.15 	investment return on the assets of the special fund must be credited in proportion to the 
85.16 	share of the assets of the special fund to the credit of each individual active member 
85.17 	account. Administrative expenses of the relief association payable from the special 
85.18 	fund may be deducted from individual accounts in a manner specified in the bylaws of 
85.19 	the relief association.
85.20 	(c) If the bylaws so permit and as the bylaws define, the relief association may credit 
85.21 	any investment return on the assets of the special fund to the accounts of inactive members.
85.22 	(d) Amounts to be credited to individual accounts must be allocated uniformly 
85.23 	for all years of active service and allocations must be made for all years of service, 
85.24 	except for caps on service credit if so provided in the bylaws of the relief association. 
85.25 	Amounts forfeited under paragraph (b), clause (3), before a resumption of active service 
85.26 	and membership under section 424A.01, subdivision 6, remain forfeited and may not be 
85.27 	reinstated upon the resumption of active service and membership. The allocation method 
85.28 	may utilize monthly proration for fractional years of service, as the bylaws or articles of 
85.29 	incorporation of the relief association so provide. The bylaws or articles of incorporation 
85.30 	may define a "month," but the definition must require a calendar month to have at least 16 
85.31 	days of active service. If the bylaws or articles of incorporation do not define a "month," a 
85.32 	"month" is a completed calendar month of active service measured from the member's 
85.33 	date of entry to the same date in the subsequent month.
85.34 	(e) At the time of retirement under subdivision 2 and any applicable provision of the 
85.35 	bylaws of the relief association, a retiring member is entitled to that portion of the assets 
85.36 	of the special fund to the credit of the member in the individual member account which is 
86.1 	nonforfeitable under subdivision 3 and any applicable provision of the bylaws of the relief 
86.2 	association based on the number of years of service to the credit of the retiring member.
86.3 	(f) Annually, the secretary of the relief association shall certify the individual 
86.4 	account allocations to the state auditor at the same time that the annual financial statement 
86.5 	or financial report and audit of the relief association, whichever applies, is due under 
86.6 	section 69.051.

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

86.8 	Sec. 6. Minnesota Statutes 2014, section 424A.02, subdivision 3, is amended to read:
86.9 		Subd. 3.Flexible service pension maximums. (a) Annually on or before August 
86.10 	1 as part of the certification of the financial requirements and minimum municipal 
86.11 	obligation determined under section 424A.092, subdivision 4, or 424A.093, subdivision 5, 
86.12 	as applicable, the secretary or some other official of the relief association designated in the 
86.13 	bylaws of each defined benefit relief association shall calculate and certify to the governing 
86.14 	body of the applicable municipality the average amount of available financing per active 
86.15 	covered firefighter for the most recent three-year period. The amount of available financing 
86.16 	includes any amounts of fire state aid and police and firefighter retirement supplemental 
86.17 	state aid received or receivable by the relief association, any amounts of municipal 
86.18 	contributions to the relief association raised from levies on real estate or from other 
86.19 	available revenue sources exclusive of fire state aid, and one-tenth of the amount of assets in 
86.20 	excess of the accrued liabilities of the relief association calculated under section 424A.092, 
86.21 	subdivision 2; 424A.093, subdivisions 2 and 4; or 424A.094, subdivision 2, if any.
86.22 	(b) The maximum service pension which the defined benefit relief association has 
86.23 	authority to provide for in its bylaws for payment to a member retiring after the calculation 
86.24 	date when the minimum age and service requirements specified in subdivision 1 are met 
86.25 	must be determined using the table in paragraph (c) or (d), whichever applies.
86.26 	(c) For a defined benefit relief association where the governing bylaws provide for 
86.27 	a monthly service pension to a retiring member, the maximum monthly service pension 
86.28 	amount per month for each year of service credited that may be provided for in the bylaws 
86.29 	is the greater of the service pension amount provided for in the bylaws on the date of the 
86.30 	calculation of the average amount of the available financing per active covered firefighter 
86.31 	or the maximum service pension figure corresponding to the average amount of available 
86.32 	financing per active covered firefighter:

87.1
87.2
87.3	Minimum Average Amount of Available 
Financing per Firefighter
	Maximum Service Pension Amount 
Payable per Month for Each 
Year of Service
	
87.4	$ ...
		$ .25
		
87.5	41
		.50
		
87.6	81
		1.00
		
87.7	122
		1.50
		
87.8	162
		2.00
		
87.9	203
		2.50
		
87.10	243
		3.00
		
87.11	284
		3.50
		
87.12	324
		4.00
		
87.13	365
		4.50
		
87.14	405
		5.00
		
87.15	486
		6.00
		
87.16	567
		7.00
		
87.17	648
		8.00
		
87.18	729
		9.00
		
87.19	810
		10.00
		
87.20	891
		11.00
		
87.21	972
		12.00
		
87.22	1053
		13.00
		
87.23	1134
		14.00
		
87.24	1215
		15.00
		
87.25	1296
		16.00
		
87.26	1377
		17.00
		
87.27	1458
		18.00
		
87.28	1539
		19.00
		
87.29	1620
		20.00
		
87.30	1701
		21.00
		
87.31	1782
		22.00
		
87.32	1823
		22.50
		
87.33	1863
		23.00
		
87.34	1944
		24.00
		
87.35	2025
		25.00
		
87.36	2106
		26.00
		
87.37	2187
		27.00
		
87.38	2268
		28.00
		
87.39	2349
		29.00
		
87.40	2430
		30.00
		
87.41	2511
		31.00
		
87.42	2592
		32.00
		
87.43	2673
		33.00
		
87.44	2754
		34.00
		
88.1	2834
		35.00
		
88.2	2916
		36.00
		
88.3	2997
		37.00
		
88.4	3078
		38.00
		
88.5	3159
		39.00
		
88.6	3240
		40.00
		
88.7	3321
		41.00
		
88.8	3402
		42.00
		
88.9	3483
		43.00
		
88.10	3564
		44.00
		
88.11	3645
		45.00
		
88.12	3726
		46.00
		
88.13	3807
		47.00
		
88.14	3888
		48.00
		
88.15	3969
		49.00
		
88.16	4050
		50.00
		
88.17	4131
		51.00
		
88.18	4212
		52.00
		
88.19	4293
		53.00
		
88.20	4374
		54.00
		
88.21	4455
		55.00
		
88.22	4536
		56.00
		
88.23	4617
		57.00
		
88.24	4698
		58.00
		
88.25	4779
		59.00
		
88.26	4860
		60.00
		
88.27	4941
		61.00
		
88.28	5022
		62.00
		
88.29	5103
		63.00
		
88.30	5184
		64.00
		
88.31	5265
		65.00
		
88.32	5346
		66.00
		
88.33	5427
		67.00
		
88.34	5508
		68.00
		
88.35	5589
		69.00
		
88.36	5670
		70.00
		
88.37	5751
		71.00
		
88.38	5832
		72.00
		
88.39	5913
		73.00
		
88.40	5994
		74.00
		
88.41	6075
		75.00
		
88.42	6156
		76.00
		
88.43	6237
		77.00
		
89.1	6318
		78.00
		
89.2	6399
		79.00
		
89.3	6480
		80.00
		
89.4	6561
		81.00
		
89.5	6642
		82.00
		
89.6	6723
		83.00
		
89.7	6804
		84.00
		
89.8	6885
		85.00
		
89.9	6966
		86.00
		
89.10	7047
		87.00
		
89.11	7128
		88.00
		
89.12	7209
		89.00
		
89.13	7290
		90.00
		
89.14	7371
		91.00
		
89.15	7452
		92.00
		
89.16	7533
		93.00
		
89.17	7614
		94.00
		
89.18	7695
		95.00
		
89.19	7776
		96.00
		
89.20	7857
		97.00
		
89.21	7938
		98.00
		
89.22	8019
		99.00
		
89.23	8100
		100.00
		
89.24	any amount in excess of 
				
89.25	8100
		100.00
		
89.26 	(d) For a defined benefit relief association in which the governing bylaws provide 
89.27 	for a lump-sum service pension to a retiring member, the maximum lump-sum service 
89.28 	pension amount for each year of service credited that may be provided for in the bylaws is 
89.29 	the greater of the service pension amount provided for in the bylaws on the date of the 
89.30 	calculation of the average amount of the available financing per active covered firefighter 
89.31 	or the maximum service pension figure corresponding to the average amount of available 
89.32 	financing per active covered firefighter for the applicable specified period:

89.33
89.34
89.35	Minimum Average Amount of Available 
Financing per Firefighter
	Maximum Lump-Sum Service 
Pension Amount Payable for 
Each Year of Service
	
89.36	$ ...
		$ 10
		
89.37	11
		20
		
89.38	16
		30
		
89.39	23
		40
		
89.40	27
		50
		
89.41	32
		60
		
89.42	43
		80
		
90.1	54
		100
		
90.2	65
		120
		
90.3	77
		140
		
90.4	86
		160
		
90.5	97
		180
		
90.6	108
		200
		
90.7	131
		240
		
90.8	151
		280
		
90.9	173
		320
		
90.10	194
		360
		
90.11	216
		400
		
90.12	239
		440
		
90.13	259
		480
		
90.14	281
		520
		
90.15	302
		560
		
90.16	324
		600
		
90.17	347
		640
		
90.18	367
		680
		
90.19	389
		720
		
90.20	410
		760
		
90.21	432
		800
		
90.22	486
		900
		
90.23	540
		1000
		
90.24	594
		1100
		
90.25	648
		1200
		
90.26	702
		1300
		
90.27	756
		1400
		
90.28	810
		1500
		
90.29	864
		1600
		
90.30	918
		1700
		
90.31	972
		1800
		
90.32	1026
		1900
		
90.33	1080
		2000
		
90.34	1134
		2100
		
90.35	1188
		2200
		
90.36	1242
		2300
		
90.37	1296
		2400
		
90.38	1350
		2500
		
90.39	1404
		2600
		
90.40	1458
		2700
		
90.41	1512
		2800
		
90.42	1566
		2900
		
90.43	1620
		3000
		
91.1	1672
		3100
		
91.2	1726
		3200
		
91.3	1753
		3250
		
91.4	1780
		3300
		
91.5	1820
		3375
		
91.6	1834
		3400
		
91.7	1888
		3500
		
91.8	1942
		3600
		
91.9	1996
		3700
		
91.10	2023
		3750
		
91.11	2050
		3800
		
91.12	2104
		3900
		
91.13	2158
		4000
		
91.14	2212
		4100
		
91.15	2265
		4200
		
91.16	2319
		4300
		
91.17	2373
		4400
		
91.18	2427
		4500
		
91.19	2481
		4600
		
91.20	2535
		4700
		
91.21	2589
		4800
		
91.22	2643
		4900
		
91.23	2697
		5000
		
91.24	2751
		5100
		
91.25	2805
		5200
		
91.26	2859
		5300
		
91.27	2913
		5400
		
91.28	2967
		5500
		
91.29	3021
		5600
		
91.30	3075
		5700
		
91.31	3129
		5800
		
91.32	3183
		5900
		
91.33	3237
		6000
		
91.34	3291
		6100
		
91.35	3345
		6200
		
91.36	3399
		6300
		
91.37	3453
		6400
		
91.38	3507
		6500
		
91.39	3561
		6600
		
91.40	3615
		6700
		
91.41	3669
		6800
		
91.42	3723
		6900
		
91.43	3777
		7000
		
92.1	3831
		7100
		
92.2	3885
		7200
		
92.3	3939
		7300
		
92.4	3993
		7400
		
92.5	4047
		7500
		
92.6	4101
		7600
		
92.7	4155
		7700
		
92.8	4209
		7800
		
92.9	4263
		7900
		
92.10	4317
		8000
		
92.11	4371
		8100
		
92.12	4425
		8200
		
92.13	4479
		8300
		
92.14	4533
		8400
		
92.15	4587
		8500
		
92.16	4641
		8600
		
92.17	4695
		8700
		
92.18	4749
		8800
		
92.19	4803
		8900
		
92.20	4857
		9000
		
92.21	4911
		9100
		
92.22	4965
		9200
		
92.23	5019
		9300
		
92.24	5073
		9400
		
92.25	5127
		9500
		
92.26	5181
		9600
		
92.27	5235
		9700
		
92.28	5289
		9800
		
92.29	5343
		9900
		
92.30	5397
		10,000
		
92.31	any amount in excess of
				
92.32	5397
		10,000
		
92.33 	(e) For a defined benefit relief association in which the governing bylaws provide 
92.34 	for a monthly benefit service pension as an alternative form of service pension payment 
92.35 	to a lump-sum service pension, the maximum service pension amount for each pension 
92.36 	payment type must be determined using the applicable table contained in this subdivision.
92.37 	(f) If a defined benefit relief association establishes a service pension in compliance 
92.38 	with the applicable maximum contained in paragraph (c) or (d) and the minimum average 
92.39 	amount of available financing per active covered firefighter is subsequently reduced 
92.40 	because of a reduction in fire state aid or because of an increase in the number of active 
92.41 	firefighters, the relief association may continue to provide the prior service pension 
93.1 	amount specified in its bylaws, but may not increase the service pension amount until 
93.2 	the minimum average amount of available financing per firefighter under the table in 
93.3 	paragraph (c) or (d), whichever applies, permits.
93.4 	(g) No defined benefit relief association is authorized to provide a service pension in 
93.5 	an amount greater than the largest applicable flexible service pension maximum amount 
93.6 	even if the amount of available financing per firefighter is greater than the financing 
93.7 	amount associated with the largest applicable flexible service pension maximum.
93.8 	(h) The method of calculating service pensions must be applied uniformly for all 
93.9 	years of active service. Credit must be given for all years of active service except for caps 
93.10 	on service credit if so provided in the bylaws of the relief association.

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

93.12 	Sec. 7. Minnesota Statutes 2014, section 424A.02, subdivision 3a, is amended to read:
93.13 		Subd. 3a.Penalty for paying pension greater than applicable maximum. (a) 
93.14 	If a defined benefit relief association pays a service pension greater than the maximum 
93.15 	service pension associated with the applicable average amount of available financing per 
93.16 	active covered firefighter under the table in subdivision 3, paragraph (c) or (d), whichever 
93.17 	applies, the maximum service pension under subdivision 3, paragraph (f), or the applicable 
93.18 	maximum service pension amount specified in subdivision 3, paragraph (g), whichever is 
93.19 	less, the state auditor shall:
93.20 	(1) disqualify the municipality or the nonprofit firefighting corporation associated 
93.21 	with the relief association from receiving fire state aid by making the appropriate 
93.22 	notification to the municipality and the commissioner of revenue, with the disqualification 
93.23 	applicable for the next apportionment and payment of fire state aid; and
93.24 	(2) order the treasurer of the applicable relief association to recover the amount of 
93.25 	the overpaid service pension or pensions from any retired firefighter who received an 
93.26 	overpayment.
93.27 	(b) Fire state aid amounts from disqualified municipalities for the period of 
93.28 	disqualifications under paragraph (a), clause (1), must be credited to the amount of 
93.29 	fire insurance premium tax proceeds available for the next subsequent fire state aid 
93.30 	apportionment.
93.31 	(c) The amount of any overpaid service pension recovered under paragraph (a), 
93.32 	clause (2), must be credited to the amount of fire insurance premium tax proceeds 
93.33 	available for the next subsequent fire state aid apportionment.
93.34 	(d) The determination of the state auditor that a relief association has paid a service 
93.35 	pension greater than the applicable maximum must be made on the basis of the information 
94.1 	filed by the relief association and the municipality with the state auditor under sections 
94.2 	69.011, subdivision 2, and 69.051, subdivision 1 or 1a, whichever applies, and any other 
94.3 	relevant information that comes to the attention of the state auditor. The determination 
94.4 	of the state auditor is final. An aggrieved municipality, relief association, or person may 
94.5 	appeal the determination under section 480A.06.
94.6 	(e) The state auditor may certify, upon learning that a relief association overpaid 
94.7 	a service pension based on an error in the maximum service pension calculation, the 
94.8 	municipality or nonprofit firefighting corporation associated with the relief association 
94.9 	for fire state aid if (1) there is evidence that the error occurred in good faith, and (2) the 
94.10 	relief association has initiated recovery of any overpayment amount. Notwithstanding 
94.11 	paragraph (c), all overpayments recovered under this paragraph must be credited to the 
94.12 	relief association's special fund.

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

94.14 	Sec. 8. Minnesota Statutes 2014, section 424A.02, subdivision 9a, is amended to read:
94.15 		Subd. 9a.Postretirement increases. Notwithstanding any provision of general or 
94.16 	special law to the contrary, a defined benefit relief association paying a monthly service 
94.17 	pension may provide a postretirement increase to retired members and ancillary benefit 
94.18 	recipients of the relief association if (1) the relief association adopts an appropriate 
94.19 	bylaw amendment; and (2) the bylaw amendment is approved by the municipality 
94.20 	pursuant to subdivision 10 and section 424A.093, subdivision 6. The postretirement 
94.21 	increase is applicable only to retired members and ancillary benefit recipients receiving a 
94.22 	monthly service pension or monthly ancillary benefit as of the effective date of the bylaw 
94.23 	amendment. The authority to provide a postretirement increase to retired members and 
94.24 	ancillary benefit recipients of a relief association contained in this subdivision supersedes 
94.25 	any prior special law authorization relating to the provision of postretirement increases.

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

94.27 	Sec. 9. Minnesota Statutes 2014, section 424A.05, subdivision 2, is amended to read:
94.28 		Subd. 2.Special fund assets and revenues. The special fund must be credited 
94.29 	with all fire state aid moneys and police and firefighter retirement supplemental state 
94.30 	aid  received under sections 69.011 to 69.051 and 423A.022, all taxes levied by or other 
94.31 	revenues received from the municipality under sections 424A.091 to 424A.096 or any 
94.32 	applicable special law requiring municipal support for the relief association, any moneys 
94.33 	funds or property donated, given, granted or devised by any person which is specified for 
95.1 	use for the support of the special fund and any interest or investment return earned upon 
95.2 	the assets of the special fund. The treasurer of the relief association is the custodian of 
95.3 	the assets of the special fund and must be the recipient on behalf of the special fund of 
95.4 	all revenues payable to the special fund. The treasurer shall maintain adequate records 
95.5 	documenting any transaction involving the assets or the revenues of the special fund. 
95.6 	These records and the bylaws of the relief association are public and must be open for 
95.7 	inspection by any member of the relief association, any officer or employee of the state or 
95.8 	of the municipality, or any member of the public, at reasonable times and places.

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

95.10 	Sec. 10. Minnesota Statutes 2014, section 424A.05, subdivision 3, is amended to read:
95.11 		Subd. 3.Authorized disbursements from special fund. (a) Disbursements from 
95.12 	the special fund may not be made for any purpose other than one of the following:
95.13 	(1) for the payment of service pensions to retired members of the relief association if 
95.14 	authorized and paid under law and the bylaws governing the relief association;
95.15 	(2) for the purchase of an annuity for the applicable person under section 424A.015, 
95.16 	subdivision 3, for the transfer of service pension or benefit amounts to the applicable 
95.17 	person's individual retirement account under section 424A.015, subdivision 4, or to the 
95.18 	applicable person's account in the Minnesota deferred compensation plan under section 
95.19 	424A.015, subdivision 5;
95.20 	(3) for the payment of temporary or permanent disability benefits to disabled 
95.21 	members of the relief association if authorized and paid under law and specified in amount 
95.22 	in the bylaws governing the relief association;
95.23 	(4) for the payment of survivor benefits or for the payment of a death benefit to the 
95.24 	estate of the deceased active or deferred firefighter, if authorized and paid under law and 
95.25 	specified in amount in the bylaws governing the relief association;
95.26 	(5) for the payment of the fees, dues and assessments to the Minnesota State Fire 
95.27 	Department Association and to the Minnesota State Fire Chiefs Association in order to 
95.28 	entitle relief association members to membership in and the benefits of these associations 
95.29 	or organizations;
95.30 	(6) for the payment of insurance premiums to the state Volunteer Firefighters Benefit 
95.31 	Association, or an insurance company licensed by the state of Minnesota offering casualty 
95.32 	insurance, in order to entitle relief association members to membership in and the benefits 
95.33 	of the association or organization; and
95.34 	(7) for the payment of administrative expenses of the relief association as authorized 
95.35 	under section 69.80.
96.1 	(b) Checks or authorizations for electronic fund transfers for disbursements 
96.2 	authorized by this section must be signed by the relief association treasurer and at least one 
96.3 	other elected trustee who has been designated by the board of trustees to sign the checks or 
96.4 	authorizations. A relief association may make disbursements authorized by this subdivision 
96.5 	by electronic funds transfers only if the specific method of payment and internal control 
96.6 	policies and procedures regarding the method are approved by the board of trustees.

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

96.8 	Sec. 11. Minnesota Statutes 2014, section 424A.092, subdivision 3, is amended to read:
96.9 		Subd. 3.Financial requirements of relief association; minimum obligation of 
96.10 	municipality. (a) During the month of July, the officers of the relief association shall 
96.11 	determine the overall funding balance of the special fund for the current calendar year, 
96.12 	the financial requirements of the special fund for the following calendar year and the 
96.13 	minimum obligation of the municipality with respect to the special fund for the following 
96.14 	calendar year in accordance with the requirements of this subdivision.
96.15 	(b) The overall funding balance of the special fund for the current calendar year must 
96.16 	be determined in the following manner:
96.17 	(1) The total accrued liability of the special fund for all active and deferred members 
96.18 	of the relief association as of December 31 of the current year must be calculated under 
96.19 	subdivisions 2 and 2a, if applicable.
96.20 	(2) The total present assets of the special fund projected to December 31 of the 
96.21 	current year, including receipts by and disbursements from the special fund anticipated to 
96.22 	occur on or before December 31, must be calculated. To the extent possible, for those 
96.23 	assets for which a market value is readily ascertainable, the current market value as of the 
96.24 	date of the calculation for those assets must be utilized in making this calculation. For any 
96.25 	asset for which no market value is readily ascertainable, the cost value or the book value, 
96.26 	whichever is applicable, must be utilized in making this calculation.
96.27 	(3) The amount of the total present assets of the special fund calculated under clause 
96.28 	(2) must be subtracted from the amount of the total accrued liability of the special fund 
96.29 	calculated under clause (1). If the amount of total present assets exceeds the amount of 
96.30 	the total accrued liability, then the special fund is considered to have a surplus over full 
96.31 	funding. If the amount of the total present assets is less than the amount of the total 
96.32 	accrued liability, then the special fund is considered to have a deficit from full funding. If 
96.33 	the amount of total present assets is equal to the amount of the total accrued liability, then 
96.34 	the special fund is considered to be fully funded.
97.1 	(c) The financial requirements of the special fund for the following calendar year 
97.2 	must be determined in the following manner:
97.3 	(1) The total accrued liability of the special fund for all active and deferred members 
97.4 	of the relief association as of December 31 of the calendar year next following the current 
97.5 	calendar year must be calculated under subdivisions 2 and 2a, if applicable.
97.6 	(2) The increase in the total accrued liability of the special fund for the following 
97.7 	calendar year over the total accrued liability of the special fund for the current year must 
97.8 	be calculated.
97.9 	(3) The amount of anticipated future administrative expenses of the special fund 
97.10 	must be calculated by multiplying the dollar amount of the administrative expenses of the 
97.11 	special fund for the most recent prior calendar year by the factor of 1.035.
97.12 	(4) If the special fund is fully funded, the financial requirements of the special fund for 
97.13 	the following calendar year are the total of the amounts calculated under clauses (2) and (3).
97.14 	(5) If the special fund has a deficit from full funding, the financial requirements of 
97.15 	the special fund for the following calendar year are the financial requirements of the 
97.16 	special fund calculated as though the special fund were fully funded under clause (4) plus 
97.17 	an amount equal to one-tenth of the original amount of the deficit from full funding of the 
97.18 	special fund as determined under clause (2) resulting either from an increase in the amount 
97.19 	of the service pension occurring in the last ten years or from a net annual investment loss 
97.20 	occurring during the last ten years until each increase in the deficit from full funding is 
97.21 	fully retired. The annual amortization contribution under this clause may not exceed the 
97.22 	amount of the deficit from full funding.
97.23 	(6) If the special fund has a surplus over full funding, the financial requirements of 
97.24 	the special fund for the following calendar year are the financial requirements of the special 
97.25 	fund calculated as though the special fund were fully funded under clause (4) reduced by an 
97.26 	amount equal to one-tenth of the amount of the surplus over full funding of the special fund.
97.27 	(d) The minimum obligation of the municipality with respect to the special fund is 
97.28 	the financial requirements of the special fund reduced by the amount of any fire state aid 
97.29 	and police and firefighter retirement supplemental state aid payable under sections 69.011
97.30 	to 69.051and 423A.022 reasonably anticipated to be received by the municipality for 
97.31 	transmittal to the special fund during the following calendar year, an amount of interest on 
97.32 	the assets of the special fund projected to the beginning of the following calendar year 
97.33 	calculated at the rate of five percent per annum, and the amount of any contributions to 
97.34 	the special fund required by the relief association bylaws from the active members of the 
97.35 	relief association reasonably anticipated to be received during the following calendar year. 
98.1 	A reasonable amount of anticipated fire state aid is an amount that does not exceed the fire 
98.2 	state aid actually received in the prior year multiplied by the factor 1.035.

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

98.4 	Sec. 12. Minnesota Statutes 2014, section 424A.092, subdivision 6, is amended to read:
98.5 		Subd. 6.Municipal ratification for plan amendments. If the special fund of the 
98.6 	relief association does not have a surplus over full funding under subdivision 3, paragraph 
98.7 	(c), clause (5), and if the municipality is required to provide financial support to the special 
98.8 	fund of the relief association under this section, the adoption of or any amendment to the 
98.9 	articles of incorporation or bylaws of a relief association which increases or otherwise 
98.10 	affects the retirement coverage provided by or the service pensions or retirement benefits 
98.11 	payable from the special fund of any relief association to which this section applies is not 
98.12 	effective until it is ratified by the governing body of the municipality served by the fire 
98.13 	department to which the relief association is directly associated or by the independent 
98.14 	nonprofit firefighting corporation, as applicable, and the officers of a relief association 
98.15 	shall not seek municipal ratification prior to preparing and certifying an estimate of 
98.16 	the expected increase in the accrued liability and annual accruing liability of the relief 
98.17 	association attributable to the amendment. If the special fund of the relief association 
98.18 	has a surplus over full funding under subdivision 3, paragraph (c), clause (5), and if the 
98.19 	municipality is not required to provide financial support to the special fund of the relief 
98.20 	association under this section, the relief association may adopt or amend its articles of 
98.21 	incorporation or bylaws which increase or otherwise affect the retirement coverage 
98.22 	provided by or the service pensions or retirement benefits payable from the special fund 
98.23 	of the relief association which are effective without municipal ratification so long as this 
98.24 	does not cause the amount of the resulting increase in the accrued liability of the special 
98.25 	fund of the relief association to exceed 90 percent of the amount of the surplus over full 
98.26 	funding reported in the prior year and this does not result in the financial requirements 
98.27 	of the special fund of the relief association exceeding the expected amount of the future 
98.28 	fire state aid and police and firefighter retirement supplemental state aid to be received 
98.29 	by the relief association as determined by the board of trustees following the preparation 
98.30 	of an estimate of the expected increase in the accrued liability and annual accruing 
98.31 	liability of the relief association attributable to the change. If a relief association adopts or 
98.32 	amends its articles of incorporation or bylaws without municipal ratification under this 
98.33 	subdivision, and, subsequent to the amendment or adoption, the financial requirements 
98.34 	of the special fund of the relief association under this section are such so as to require 
98.35 	financial support from the municipality, the provision which was implemented without 
99.1 	municipal ratification is no longer effective without municipal ratification and any service 
99.2 	pensions or retirement benefits payable after that date may be paid only in accordance with 
99.3 	the articles of incorporation or bylaws as amended or adopted with municipal ratification.

99.4 	Sec. 13. Minnesota Statutes 2014, section 424A.093, subdivision 5, is amended to read:
99.5 		Subd. 5.Minimum municipal obligation. (a) The officers of the relief association 
99.6 	shall determine the minimum obligation of the municipality with respect to the special 
99.7 	fund of the relief association for the following calendar year on or before August 1 of each 
99.8 	year in accordance with the requirements of this subdivision.
99.9 	(b) The minimum obligation of the municipality with respect to the special fund is 
99.10 	an amount equal to the financial requirements of the special fund of the relief association 
99.11 	determined under subdivision 4, reduced by the estimated amount of any fire state 
99.12 	aid and police and firefighter retirement supplemental state aid payable under sections 
99.13 	69.011 to 69.051and 423A.022 reasonably anticipated to be received by the municipality 
99.14 	for transmittal to the special fund of the relief association during the following year 
99.15 	and the amount of any anticipated contributions to the special fund required by the 
99.16 	relief association bylaws from the active members of the relief association reasonably 
99.17 	anticipated to be received during the following calendar year. A reasonable amount of 
99.18 	anticipated fire state aid is an amount that does not exceed the fire state aid actually 
99.19 	received in the prior year multiplied by the factor 1.035.
99.20 	(c) The officers of the relief association shall certify the financial requirements of the 
99.21 	special fund of the relief association and the minimum obligation of the municipality with 
99.22 	respect to the special fund of the relief association as determined under subdivision 4 and 
99.23 	this subdivision by August 1 of each year. The certification must be made to the entity that 
99.24 	is responsible for satisfying the minimum obligation with respect to the special fund of the 
99.25 	relief association. If the responsible entity is a joint powers entity, the certification must be 
99.26 	made in the manner specified in the joint powers agreement, or if the joint powers agreement 
99.27 	is silent on this point, the certification must be made to the chair of the joint powers board.
99.28 	(d) The financial requirements of the relief association and the minimum municipal 
99.29 	obligation must be included in the financial report or financial statement under section 
99.30 	69.051.
99.31 	(e) The municipality shall provide for at least the minimum obligation of the 
99.32 	municipality with respect to the special fund of the relief association by tax levy or from 
99.33 	any other source of public revenue. The municipality may levy taxes for the payment of the 
99.34 	minimum municipal obligation without any limitation as to rate or amount and irrespective 
99.35 	of any limitations imposed by other provisions of law or charter upon the rate or amount 
100.1 	of taxation until the balance of the special fund or any fund of the relief association has 
100.2 	attained a specified level. In addition, any taxes levied under this section must not cause 
100.3 	the amount or rate of any other taxes levied in that year or to be levied in a subsequent year 
100.4 	by the municipality which are subject to a limitation as to rate or amount to be reduced.
100.5 	(f) If the municipality does not include the full amount of the minimum municipal 
100.6 	obligation in its levy for any year, the officers of the relief association shall certify that 
100.7 	amount to the county auditor, who shall spread a levy in the amount of the minimum 
100.8 	municipal obligation on the taxable property of the municipality.
100.9 	(g) If the state auditor determines that a municipal contribution actually made in a 
100.10 	plan year was insufficient under section 424A.091, subdivision 3, paragraph (c), clause 
100.11 	(5), the state auditor may request from the relief association or from the city a copy of 
100.12 	the certifications under this subdivision. The relief association or the city, whichever 
100.13 	applies, must provide the certifications within 14 days of the date of the request from 
100.14 	the state auditor.

100.15 	Sec. 14. Minnesota Statutes 2014, section 424A.093, subdivision 6, is amended to read:
100.16 		Subd. 6.Municipal ratification for plan amendments. If the special fund of the 
100.17 	relief association does not have a surplus over full funding under subdivision 4, and 
100.18 	if the municipality is required to provide financial support to the special fund of the 
100.19 	relief association under this section, the adoption of or any amendment to the articles of 
100.20 	incorporation or bylaws of a relief association which increases or otherwise affects the 
100.21 	retirement coverage provided by or the service pensions or retirement benefits payable from 
100.22 	the special fund of any relief association to which this section applies is not effective until it 
100.23 	is ratified by the governing body of the municipality served by the fire department to which 
100.24 	the relief association is directly associated or by the independent nonprofit firefighting 
100.25 	corporation, as applicable. If the special fund of the relief association has a surplus 
100.26 	over full funding under subdivision 4, and if the municipality is not required to provide 
100.27 	financial support to the special fund of the relief association under this section, the relief 
100.28 	association may adopt or amend its articles of incorporation or bylaws which increase or 
100.29 	otherwise affect the retirement coverage provided by or the service pensions or retirement 
100.30 	benefits payable from the special fund of the relief association which are effective without 
100.31 	municipal ratification so long as this does not cause the amount of the resulting increase in 
100.32 	the accrued liability of the special fund of the relief association to exceed 90 percent of 
100.33 	the amount of the surplus over full funding reported in the prior year and this does not 
100.34 	result in the financial requirements of the special fund of the relief association exceeding 
100.35 	the expected amount of the future fire state aid and police and firefighter retirement 
101.1 	supplemental state aid to be received by the relief association as determined by the 
101.2 	board of trustees following the preparation of an updated actuarial valuation including 
101.3 	the proposed change or an estimate of the expected actuarial impact of the proposed 
101.4 	change prepared by the actuary of the relief association. If a relief association adopts or 
101.5 	amends its articles of incorporation or bylaws without municipal ratification pursuant to 
101.6 	this subdivision, and, subsequent to the amendment or adoption, the financial requirements 
101.7 	of the special fund of the relief association under this section are such so as to require 
101.8 	financial support from the municipality, the provision which was implemented without 
101.9 	municipal ratification is no longer effective without municipal ratification and any service 
101.10 	pensions or retirement benefits payable after that date may be paid only in accordance with 
101.11 	the articles of incorporation or bylaws as amended or adopted with municipal ratification.

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

101.13 	ARTICLE 10
101.14 	PARTICULAR VOLUNTEER FIREFIGHTER RELIEF 
101.15 	ASSOCIATION CHANGES

101.16 	Section 1. ROSEVILLE VOLUNTEER FIREFIGHTERS RELIEF 
101.17 	ASSOCIATION; GOVERNANCE AND ADMINISTRATION.
 101.18 		Subdivision 1.Retiree board of trustees representation. (a) Notwithstanding 
101.19 	any provision of Minnesota Statutes, section 424A.04, subdivision 1, to the contrary 
101.20 	the membership of the board of trustees of the Roseville Volunteer Firefighters Relief 
101.21 	Association (RVFRA) is as provided in paragraph (b), with the additional membership of 
101.22 	the chief of the fire department, one elected Roseville municipal official, and one elected 
101.23 	or appointed Roseville municipal official appointed by the Roseville City Council if:
101.24 	(1) all service pensions and survivor benefits have not been annuitized as provided 
101.25 	under Minnesota Statutes, section 424A.015, subdivision 3; and
101.26 	(2) the RVFRA is administered by a governing board.
101.27 	(b)(1) Beginning the day following the effective date of this section, the RVFRA 
101.28 	board of trustees shall consist of three active Roseville firefighters elected from the 
101.29 	membership of the RVFRA and three retired members of the RVFRA elected from the 
101.30 	membership of the relief association.
101.31 	(2) Beginning on the January 1 next following the date on which the number of active 
101.32 	Roseville firefighters who are members of the RVFRA totals 25 or less, the RVFRA board of 
101.33 	trustees shall consist of two active firefighters elected from the membership of the RVFRA, 
101.34 	and four retired members of the RVFRA elected from the membership of the RVFRA.
102.1 	(3) Beginning on the January 1 next following the date on which the number of 
102.2 	active Roseville firefighters who are members of the RVFRA totals ten or less, the RVFRA 
102.3 	board of trustees shall consist of one active firefighter elected from the membership of 
102.4 	the RVFRA, and five retired members of the RVFRA elected from the membership of the 
102.5 	RVFRA.
102.6 	(4) Beginning on the January 1 next following the date on which there are no active 
102.7 	Roseville firefighters who are members of the RVFRA, the RVFRA board of trustees shall 
102.8 	consist of six retired members of the RVFRA elected from the membership of the RVFRA.
102.9 		Subd. 2.Disposition of remaining assets when obligations are paid. Upon the 
102.10 	death of the last benefit recipient and the last potential surviving spouse of the last benefit 
102.11 	recipient, the remaining assets of the RVFRA or the former RVFRA cancel to the city 
102.12 	treasury of the city of Roseville.

102.13 	EFFECTIVE DATE; LOCAL APPROVAL. This section is effective the day after 
102.14 	the city council of Roseville and its chief clerical officer timely complete their compliance 
102.15 	with Minnesota Statutes, section 645.021, subdivisions 2 and 3.

102.16 	Sec. 2. CENTENNIAL VOLUNTEER FIREFIGHTERS RELIEF 
102.17 	ASSOCIATION; LINO LAKES FIREFIGHTER TRANSFERS.
 102.18 	(a) Notwithstanding any provisions of Minnesota Statutes, chapters 424A and 424B, 
102.19 	to the contrary, if between May 1, 2015, and December 31, 2017, a Centennial Fire District 
102.20 	firefighter elects to become an emergency on-call firefighter employed by a city or nonprofit 
102.21 	firefighting corporation adjoining or within the service area of the Centennial Fire District 
102.22 	as it existed on March 1, 2015, the firefighter may elect to transfer past retirement coverage 
102.23 	for prior firefighting service with the Centennial Fire District as provided in paragraph (b) 
102.24 	and to have prospective firefighting service treated as a continuation of past firefighting 
102.25 	service for vesting and benefit computation purposes by the volunteer firefighter relief 
102.26 	association of the applicable city or nonprofit firefighting corporation if the bylaws of that 
102.27 	relief association so permit or by the voluntary statewide volunteer firefighter retirement 
102.28 	plan if that plan provides retirement coverage to the applicable fire department.
102.29 	(b) If a change in fire department service described in paragraph (a) is made in a 
102.30 	timely fashion, upon notification by the fire chief of the fire department of the municipality 
102.31 	or nonprofit firefighting corporation described in paragraph (a) to the secretary of the 
102.32 	applicable volunteer firefighter relief association or to the executive director of the Public 
102.33 	Employees Retirement Association, good time service credit, accrued liability associated 
102.34 	with the good time service credit, a proportional share of relief association assets on 
102.35 	an institution-to-institution basis, and a proportional share of any net accounts payable 
103.1 	or receivable must be transferred from the Centennial Volunteer Firefighters Relief 
103.2 	Association to the applicable account in the voluntary statewide volunteer firefighter 
103.3 	retirement plan or to the applicable volunteer firefighter relief association retirement 
103.4 	plan. The transferring good time service credit must be the years and months of credit 
103.5 	indicated in the firefighter's records in the Centennial Volunteer Firefighters Relief 
103.6 	Association on the date of transfer. The transferred accrued liability must be the liability 
103.7 	for the transferred good time service credit at the service pension level under Minnesota 
103.8 	Statutes, section 424A.092 or 424A.093, whichever applies, or under Minnesota Statutes, 
103.9 	section 353G.11, subdivision 1, whatever is applicable to the fire department successively 
103.10 	employing the firefighter. The transferred assets amount must be that portion of the market 
103.11 	value of the assets of the Centennial Volunteer Firefighters Relief Association as of the 
103.12 	December 31 preceding the transfer date determined by expressing the total length of good 
103.13 	time service credit multiplied by the applicable multiple of the applicable liability table 
103.14 	factor in Minnesota Statutes, section 424A.092, subdivision 2, of all active and deferred 
103.15 	members of the Centennial Volunteer Firefighters Relief Association, adjusted for any 
103.16 	deferred member deferral period interest, and applying that percentage to the asset market 
103.17 	value. If there are any accounts payable or accounts receivable as of the December 31 
103.18 	preceding the transfer date, the same percentage as applicable to the asset transfer must be 
103.19 	applied to the net accounts payable/receivable amount, with the result deducted from or 
103.20 	added to the ultimate transfer amount. Any dispute about these transfer amounts must 
103.21 	be referred for resolution by the volunteer firefighter relief association to the Office of 
103.22 	Administrative Hearings for resolution under Minnesota Statutes, chapter 14.
103.23 	(c) The transfer dates under this section are January 1, 2016, January 1, 2017, or 
103.24 	January 1, 2018.
103.25 	(d) The asset transfer under paragraph (b) must be made in cash unless the secretary 
103.26 	of the successor of the volunteer firefighter relief association or the executive director of 
103.27 	the State Board of Investment, whichever applies, determines that the transfer may be 
103.28 	made on an investment security basis, and if so determined, must be in the investment 
103.29 	security portfolio mix specified by the secretary of the successor of the volunteer firefighter 
103.30 	relief association or the executive director of the State Board of Investment.
103.31 	(e) The transfer of good time service credit and accrued liability constitutes a 
103.32 	forfeiture of any claim by the transferring firefighter to any service pension or ancillary 
103.33 	benefit payment from the Centennial Volunteer Firefighters Relief Association as of the 
103.34 	transfer date and must be so reflected in any financial reporting of the Centennial Volunteer 
103.35 	Firefighters Relief Association as of the December 31 preceding the transfer date.
104.1 	(f) With respect to any transferred firefighter under this section, the successor 
104.2 	volunteer firefighter relief association or the account of the voluntary statewide volunteer 
104.3 	firefighter retirement plan applicable to the successor fire department is the successor in 
104.4 	interest to the Centennial Volunteer Firefighters Relief Association and has and may assert 
104.5 	any applicable defense that the Centennial Volunteer Firefighters Relief Association could 
104.6 	have asserted if the transfer did not occur unless the act or acts constituting the cause of 
104.7 	action were not undertaken by the Centennial Volunteer Firefighters Relief Association in 
104.8 	good faith and in compliance with applicable state law.

104.9 	EFFECTIVE DATE; LOCAL APPROVAL REQUIREMENT. This section is 
104.10 	effective the day after the latest date on which the governing bodies and the chief clerical 
104.11 	officers of the cities of Centerville, Circle Pines, and Lino Lakes timely complete their 
104.12 	compliance with Minnesota Statutes, section 645.021, subdivisions 2 and 3.

104.13 	ARTICLE 11
104.14 	SMALL GROUP RETIREMENT CHANGES

104.15 	Section 1. Minnesota Statutes 2014, section 352.01, subdivision 2a, is amended to read:
104.16 		Subd. 2a.Included employees. (a) "State employee" includes:
104.17 	(1) employees of the Minnesota Historical Society;
104.18 	(2) employees of the State Horticultural Society;
104.19 	(3) employees of the Minnesota Crop Improvement Association;
104.20 	(4) employees of the adjutant general whose salaries are paid from federal funds and 
104.21 	who are not covered by any federal civilian employees retirement system;
104.22 	(5) employees of the Minnesota State Colleges and Universities who are employed 
104.23 	under the university or college activities program;
104.24 	(6) currently contributing employees covered by the system who are temporarily 
104.25 	employed by the legislature during a legislative session or any currently contributing 
104.26 	employee employed for any special service as defined in subdivision 2b, clause (8) (6);
104.27 	(7) employees of the legislature who are appointed without a limit on the duration 
104.28 	of their employment and persons employed or designated by the legislature or by a 
104.29 	legislative committee or commission or other competent authority to conduct a special 
104.30 	inquiry, investigation, examination, or installation;
104.31 	(8) trainees who are employed on a full-time established training program 
104.32 	performing the duties of the classified position for which they will be eligible to receive 
104.33 	immediate appointment at the completion of the training period;
104.34 	(9) employees of the Minnesota Safety Council;
105.1 	(10) any employees who are on authorized leave of absence from the Transit 
105.2 	Operating Division of the former Metropolitan Transit Commission and who are employed 
105.3 	by the labor organization which is the exclusive bargaining agent representing employees 
105.4 	of the Transit Operating Division;
105.5 	(11) employees of the Metropolitan Council, Metropolitan Parks and Open Space 
105.6 	Commission, Metropolitan Sports Facilities Commission, or Metropolitan Mosquito 
105.7 	Control Commission unless excluded under subdivision 2b or are covered by another 
105.8 	public pension fund or plan under section 473.415, subdivision 3;
105.9 	(12) judges of the Tax Court;
105.10 	(13) personnel who were employed on June 30, 1992, by the University of 
105.11 	Minnesota in the management, operation, or maintenance of its heating plant facilities, 
105.12 	whose employment transfers to an employer assuming operation of the heating plant 
105.13 	facilities, so long as the person is employed at the University of Minnesota heating plant 
105.14 	by that employer or by its successor organization;
105.15 	(14) personnel who are employed as seasonal employees in the classified or 
105.16 	unclassified service;
105.17 	(15) persons who are employed by the Department of Commerce as a peace officer 
105.18 	in the Commerce Fraud Bureau under section 45.0135 who have attained the mandatory 
105.19 	retirement age specified in section 43A.34, subdivision 4;
105.20 	(16) employees of the University of Minnesota unless excluded under subdivision 
105.21 	2b, clause (3);
105.22 	(17) employees of the Middle Management Association whose employment began 
105.23 	after July 1, 2007, and to whom section 352.029 does not apply;
105.24 	(18) employees of the Minnesota Government Engineers Council to whom section 
105.25 	352.029 does not apply;
105.26 	(19) employees of the Minnesota Sports Facilities Authority;
105.27 	(20) employees of the Minnesota Association of Professional Employees;
105.28 	(21) employees of the Minnesota State Retirement System;
105.29 	(22) employees of the State Agricultural Society;
105.30 	(23) employees of the Gillette Children's Hospital Board who were employed in the 
105.31 	state unclassified service at the former Gillette Children's Hospital on March 28, 1974; and
105.32 	(24) if approved for coverage by the Board of Directors of Conservation Corps 
105.33 	Minnesota, employees of Conservation Corps Minnesota so employed on June 30, 2003.
105.34 	(b) Employees specified in paragraph (a), clause (13), are included employees under 
105.35 	paragraph (a) if employer and employee contributions are made in a timely manner in the 
105.36 	amounts required by section 352.04. Employee contributions must be deducted from 
106.1 	salary. Employer contributions are the sole obligation of the employer assuming operation 
106.2 	of the University of Minnesota heating plant facilities or any successor organizations to 
106.3 	that employer.

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

106.5 	Sec. 2. Minnesota Statutes 2014, section 352D.02, subdivision 1, is amended to read:
106.6 		Subdivision 1.Coverage.  (a) Employees enumerated in paragraph (c), clauses (2), 
106.7 	(3), (4), (6) to (14), and (16) to (18), if they are in the unclassified service of the state or 
106.8 	Metropolitan Council and are eligible for coverage under the general state employees 
106.9 	retirement plan under chapter 352, are participants in the unclassified program under this 
106.10 	chapter unless the employee gives notice to the executive director of the Minnesota State 
106.11 	Retirement System within one year following the commencement of employment in the 
106.12 	unclassified service that the employee desires coverage under the general state employees 
106.13 	retirement plan. For the purposes of this chapter, an employee who does not file notice 
106.14 	with the executive director is deemed to have exercised the option to participate in the 
106.15 	unclassified program.
106.16 	(b) Persons referenced in paragraph (c), clause (5), are participants in the unclassified 
106.17 	program under this chapter unless the person was eligible to elect different coverage under 
106.18 	section 3A.07 and elected retirement coverage by the applicable alternative retirement 
106.19 	plan. Persons referenced in paragraph (c), clause (15), are participants in the unclassified 
106.20 	program under this chapter for judicial employment in excess of the service credit limit in 
106.21 	section 490.121, subdivision 22.
106.22 	(c) Enumerated employees and referenced persons are:
106.23 	(1) the governor, the lieutenant governor, the secretary of state, the state auditor, 
106.24 	and the attorney general;
106.25 	(2) an employee in the Office of the Governor, Lieutenant Governor, Secretary 
106.26 	of State, State Auditor, Attorney General;
106.27 	(3) an employee of the State Board of Investment;
106.28 	(4) the head of a department, division, or agency created by statute in the unclassified 
106.29 	service, an acting department head subsequently appointed to the position, or an employee 
106.30 	enumerated in section 15A.0815 or 15A.083, subdivision 4;
106.31 	(5) a member of the legislature;
106.32 	(6) a full-timean unclassified employee of the legislature or a commission or agency 
106.33 	of the legislature who is appointed without a limit on the duration of the employment or a 
106.34 	temporary legislative employee having shares in the supplemental retirement fund as a 
107.1 	result of former employment covered by this chapter, whether or not eligible for coverage 
107.2 	under the Minnesota State Retirement System;
107.3 	(7) a person who is employed in a position established under section 43A.08, 
107.4 	subdivision 1, clause (3), or in a position authorized under a statute creating or establishing 
107.5 	a department or agency of the state, which is at the deputy or assistant head of department 
107.6 	or agency or director level;
107.7 	(8) the regional administrator, or executive director of the Metropolitan Council, 
107.8 	general counsel, division directors, operations managers, and other positions as designated 
107.9 	by the council, all of which may not exceed 27 positions at the council and the chair;
107.10 	(9) the commissioner, deputy commissioner, and not to exceed nine positions 
107.11 	of the Minnesota Office of Higher Education in the unclassified service, as designated 
107.12 	by the Minnesota Office of Higher Education before January 1, 1992, or subsequently 
107.13 	redesignated with the approval of the board of directors of the Minnesota State Retirement 
107.14 	System, unless the person has elected coverage by the individual retirement account 
107.15 	plan under chapter 354B;
107.16 	(10) the clerk of the appellate courts appointed under article VI, section 2, of the 
107.17 	Constitution of the state of Minnesota, the state court administrator and judicial district 
107.18 	administrators;
107.19 	(11) the chief executive officers of correctional facilities operated by the Department 
107.20 	of Corrections and of hospitals and nursing homes operated by the Department of Human 
107.21 	Services;
107.22 	(12) an employee whose principal employment is at the state ceremonial house;
107.23 	(13) an employee of the Agricultural Utilization Research Institute;
107.24 	(14) an employee of the State Lottery who is covered by the managerial plan 
107.25 	established under section 43A.18, subdivision 3;
107.26 	(15) a judge who has exceeded the service credit limit in section 490.121, 
107.27 	subdivision 22;
107.28 	(16) an employee of Enterprise Minnesota, Inc.;
107.29 	(17) a person employed by the Minnesota State Colleges and Universities as faculty 
107.30 	or in an eligible unclassified administrative position as defined in section 354B.20, 
107.31 	subdivision 6, who was employed by the former state university or the former community 
107.32 	college system before May 1, 1995, and elected unclassified program coverage prior to 
107.33 	May 1, 1995; and
107.34 	(18) a person employed by the Minnesota State Colleges and Universities who 
107.35 	was employed in state service before July 1, 1995, who subsequently is employed in an 
108.1 	eligible unclassified administrative position as defined in section 354B.20, subdivision 
108.2 	6, and who elects coverage by the unclassified program.

108.3 	EFFECTIVE DATE. This section is effective the day following final enactment 
108.4 	and applies to any legislative employee who had that status as of that date.

108.5 	Sec. 3. Minnesota Statutes 2014, section 353.01, subdivision 2a, is amended to read:
108.6 		Subd. 2a.Included employees; mandatory membership. (a) Public employees 
108.7 	whose annual salary from one governmental subdivision is stipulated in advance to exceed 
108.8 	$5,100 if the person is not a school year employee or $3,800 if the person is a school year 
108.9 	employee and who are not specifically excluded under subdivision 2b or who have not 
108.10 	been provided an option to participate under subdivision 2d, whether individually or by 
108.11 	action of the governmental subdivision, must participate as members of the association 
108.12 	with retirement coverage by the general employees retirement plan under this chapter, 
108.13 	the public employees police and fire retirement plan under this chapter, or the local 
108.14 	government correctional employees retirement plan under chapter 353E, whichever 
108.15 	applies. Membership commences as a condition of their employment on the first day of 
108.16 	their employment or on the first day that the eligibility criteria are met, whichever is later. 
108.17 	Public employees include but are not limited to:
108.18 	(1) persons whose salary meets the threshold in this paragraph from employment in 
108.19 	one or more positions within one governmental subdivision;
108.20 	(2) elected county sheriffs;
108.21 	(3) persons who are appointed, employed, or contracted to perform governmental 
108.22 	functions that by law or local ordinance are required of a public officer, including, but 
108.23 	not limited to:
108.24 	(i) town and city clerk or treasurer;
108.25 	(ii) county auditor, treasurer, or recorder;
108.26 	(iii) city manager as defined in section 353.028 who does not exercise the option 
108.27 	provided under subdivision 2d; or
108.28 	(iv) emergency management director, as provided under section 12.25;
108.29 	(4) physicians under section 353D.01, subdivision 2, who do not elect public 
108.30 	employees defined contribution plan coverage under section 353D.02, subdivision 2;
108.31 	(5) full-time employees of the Dakota County Agricultural Society;
108.32 	(6) employees of the Red Wing Port Authority who were first employed by the 
108.33 	Red Wing Port Authority before May 1, 2011, and who are not excluded employees 
108.34 	under subdivision 2b;
109.1 	(7) employees of the Seaway Port Authority of Duluth who are not excluded 
109.2 	employees under subdivision 2b;
109.3 	(8) employees of the Stevens County Housing and Redevelopment Authority who 
109.4 	were first employed by the Stevens County Housing and Redevelopment Authority before 
109.5 	May 1, 2014, and who are not excluded employees under subdivision 2b; and
109.6 	(9) employees of the Minnesota River Area Agency on Aging who were first 
109.7 	employed by a Regional Development Commission before January 1, 2016, and who are 
109.8 	not excluded employees under subdivision 2b; and
109.9 	(9) (10) employees of the Public Employees Retirement Association.
109.10 	(b) A public employee or elected official who was a member of the association on 
109.11 	June 30, 2002, based on employment that qualified for membership coverage by the public 
109.12 	employees retirement plan or the public employees police and fire plan under this chapter, 
109.13 	or the local government correctional employees retirement plan under chapter 353E as of 
109.14 	June 30, 2002, retains that membership for the duration of the person's employment in that 
109.15 	position or incumbency in elected office. Except as provided in subdivision 28, the person 
109.16 	shall participate as a member until the employee or elected official terminates public 
109.17 	employment under subdivision 11a or terminates membership under subdivision 11b.
109.18 	(c) If in any subsequent year the annual salary of an included public employee is 
109.19 	less than the minimum salary threshold specified in this subdivision, the member retains 
109.20 	membership eligibility.
109.21 	(d) For the purpose of participation in the MERF division of the general employees 
109.22 	retirement plan, public employees include employees who were members of the former 
109.23 	Minneapolis Employees Retirement Fund on June 29, 2010, and who participate as 
109.24 	members of the MERF division of the association.

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

109.26 	Sec. 4. Minnesota Statutes 2014, section 353.01, subdivision 2b, is amended to read:
109.27 		Subd. 2b.Excluded employees. (a) The following public employees are not eligible 
109.28 	to participate as members of the association with retirement coverage by the general 
109.29 	employees retirement plan, the local government correctional employees retirement plan 
109.30 	under chapter 353E, or the public employees police and fire retirement plan:
109.31 	(1) persons whose annual salary from one governmental subdivision never exceeds 
109.32 	an amount, stipulated in writing in advance, of $5,100 if the person is not a school district 
109.33 	employee or $3,800 if the person is a school year employee. If annual compensation from 
109.34 	one governmental subdivision to an employee exceeds the stipulated amount in a calendar 
109.35 	year or a school year, whichever applies, after being stipulated in advance not to exceed 
110.1 	the applicable amount, the stipulation is no longer valid and contributions must be made 
110.2 	on behalf of the employee under section 353.27, subdivision 12, from the first month in 
110.3 	which the employee received salary exceeding $425 in a month;
110.4 	(2) public officers who are elected to a governing body, city mayors, or persons who 
110.5 	are appointed to fill a vacancy in an elective office of a governing body, whose term of office 
110.6 	commences on or after July 1, 2002, for the service to be rendered in that elective position;
110.7 	(3) election judges and persons employed solely to administer elections;
110.8 	(4) patient and inmate personnel who perform services for a governmental 
110.9 	subdivision;
110.10 	(5) except as otherwise specified in subdivision 12a, employees who are employed 
110.11 	solely in a temporary position as defined under subdivision 12a, and employees who 
110.12 	resign from a nontemporary position and accept a temporary position within 30 days of 
110.13 	that resignation in the same governmental subdivision;
110.14 	(6) employees who are employed by reason of work emergency caused by fire, 
110.15 	flood, storm, or similar disaster, but if the person becomes a probationary or provisional 
110.16 	employee within the same pay period, other than on a temporary basis, the person is a 
110.17 	"public employee" retroactively to the beginning of the pay period;
110.18 	(7) employees who by virtue of their employment in one governmental subdivision 
110.19 	are required by law to be a member of and to contribute to any of the plans or funds 
110.20 	administered by the Minnesota State Retirement System, the Teachers Retirement 
110.21 	Association, or the St. Paul Teachers Retirement Fund Association, but this exclusion 
110.22 	must not be construed to prevent a person from being a member of and contributing to 
110.23 	the Public Employees Retirement Association and also belonging to and contributing to 
110.24 	another public pension plan or fund for other service occurring during the same period 
110.25 	of time, and a person who meets the definition of "public employee" in subdivision 2 by 
110.26 	virtue of other service occurring during the same period of time becomes a member of the 
110.27 	association unless contributions are made to another public retirement plan on the salary 
110.28 	based on the other service or to the Teachers Retirement Association by a teacher as 
110.29 	defined in section 354.05, subdivision 2;
110.30 	(8) persons who are members of a religious order and are excluded from coverage 
110.31 	under the federal Old Age, Survivors, Disability, and Health Insurance Program for the 
110.32 	performance of service as specified in United States Code, title 42, section 410(a)(8)(A), 
110.33 	as amended, if no irrevocable election of coverage has been made under section 3121(r) of 
110.34 	the Internal Revenue Code of 1954, as amended;
110.35 	(9) persons who are:
111.1 	(i) employed by a governmental subdivision who have not reached the age of 23 
111.2 	and who are enrolled on a full-time basis to attend or are attending classes on a full-time 
111.3 	basis at an accredited school, college, or university in an undergraduate, graduate, or 
111.4 	professional-technical program, or at a public or charter high school;
111.5 	(ii) employed as resident physicians, medical interns, pharmacist residents, or 
111.6 	pharmacist interns and are serving in a degree or residency program in a public hospital 
111.7 	or in a public clinic; or
111.8 	(iii) students who are serving for a period not to exceed five years in an internship 
111.9 	or a residency program that is sponsored by a governmental subdivision, including an 
111.10 	accredited educational institution;
111.11 	(10) persons who hold a part-time adult supplementary technical college license who 
111.12 	render part-time teaching service in a technical college;
111.13 	(11) except for employees of Hennepin County or employees of Hennepin 
111.14 	Healthcare System, Inc., foreign citizens who are employed by a governmental subdivision 
111.15 	under a work permit or under an H-1b visa initially issued or extended for a combined 
111.16 	period of less than three years of employment but upon extension of the employment of 
111.17 	the visa beyond the three-year period, the foreign citizen must be reported for membership 
111.18 	beginning on the first of the month following the extension if the monthly earnings 
111.19 	threshold as provided under subdivision 2a is met;
111.20 	(12) public hospital employees who elected not to participate as members of the 
111.21 	association before 1972 and who did not elect to participate from July 1, 1988, to October 
111.22 	1, 1988;
111.23 	(13) except as provided in section 353.86, volunteer ambulance service personnel, as 
111.24 	defined in subdivision 35, but persons who serve as volunteer ambulance service personnel 
111.25 	may still qualify as public employees under subdivision 2 and may be members of the 
111.26 	Public Employees Retirement Association and participants in the general employees 
111.27 	retirement plan or the public employees police and fire plan, whichever applies, on the 
111.28 	basis of compensation received from public employment service other than service as 
111.29 	volunteer ambulance service personnel;
111.30 	(14) except as provided in section 353.87, volunteer firefighters, as defined in 
111.31 	subdivision 36, engaging in activities undertaken as part of volunteer firefighter duties, 
111.32 	but a person who is a volunteer firefighter may still qualify as a public employee under 
111.33 	subdivision 2 and may be a member of the Public Employees Retirement Association and 
111.34 	a participant in the general employees retirement plan or the public employees police 
111.35 	and fire plan, whichever applies, on the basis of compensation received from public 
111.36 	employment activities other than those as a volunteer firefighter;
112.1 	(15) pipefitters and associated trades personnel employed by Independent School 
112.2 	District No. 625, St. Paul, with coverage under a collective bargaining agreement by the 
112.3 	pipefitters local 455 pension plan who were either first employed after May 1, 1997, or, 
112.4 	if first employed before May 2, 1997, elected to be excluded under Laws 1997, chapter 
112.5 	241, article 2, section 12;
112.6 	(16) electrical workers, plumbers, carpenters, and associated trades personnel who 
112.7 	are employed by Independent School District No. 625, St. Paul, or the city of St. Paul, 
112.8 	who have retirement coverage under a collective bargaining agreement by the Electrical 
112.9 	Workers Local 110 pension plan, the United Association Plumbers Local 34 pension plan, 
112.10 	or the pension plan applicable to Carpenters Local 322 who were either first employed 
112.11 	after May 1, 2000, or, if first employed before May 2, 2000, elected to be excluded under 
112.12 	Laws 2000, chapter 461, article 7, section 5;
112.13 	(17) bricklayers, allied craftworkers, cement masons, glaziers, glassworkers, 
112.14 	painters, allied tradesworkers, and plasterers who are employed by the city of St. Paul 
112.15 	or Independent School District No. 625, St. Paul, with coverage under a collective 
112.16 	bargaining agreement by the Bricklayers and Allied Craftworkers Local 1 pension plan, 
112.17 	the Cement Masons Local 633 pension plan, the Glaziers and Glassworkers Local L-1324 
112.18 	pension plan, the Painters and Allied Trades Local 61 pension plan, or the Twin Cities 
112.19 	Plasterers Local 265 pension plan who were either first employed after May 1, 2001, or if 
112.20 	first employed before May 2, 2001, elected to be excluded under Laws 2001, First Special 
112.21 	Session chapter 10, article 10, section 6;
112.22 	(18) plumbers who are employed by the Metropolitan Airports Commission, with 
112.23 	coverage under a collective bargaining agreement by the Plumbers Local 34 pension plan, 
112.24 	who either were first employed after May 1, 2001, or if first employed before May 2, 
112.25 	2001, elected to be excluded under Laws 2001, First Special Session chapter 10, article 
112.26 	10, section 6;
112.27 	(19) employees who are hired after June 30, 2002, solely to fill seasonal positions 
112.28 	under subdivision 12b which are limited in duration by the employer to 185 consecutive 
112.29 	calendar days or less in each year of employment with the governmental subdivision;
112.30 	(20) persons who are provided supported employment or work-study positions by a 
112.31 	governmental subdivision and who participate in an employment or industries program 
112.32 	maintained for the benefit of these persons where the governmental subdivision limits the 
112.33 	position's duration to up to five years, including persons participating in a federal or state 
112.34 	subsidized on-the-job training, work experience, senior citizen, youth, or unemployment 
112.35 	relief program where the training or work experience is not provided as a part of, or 
112.36 	for, future permanent public employment;
113.1 	(21) independent contractors and the employees of independent contractors;
113.2 	(22) reemployed annuitants of the association during the course of that reemployment;
113.3 	(23) persons appointed to serve on a board or commission of a governmental 
113.4 	subdivision or an instrumentality thereof; and
113.5 	(24) persons employed as full-time fixed-route bus drivers by the St. Cloud 
113.6 	Metropolitan Transit Commission who are members of the International Brotherhood 
113.7 	of Teamsters Local 638 and who are, by virtue of that employment, members of the 
113.8 	International Brotherhood of Teamsters Central States pension plan.; and
113.9 	(25) electricians or pipefitters employed by the Minneapolis Park and Recreation 
113.10 	Board, with coverage under a collective bargaining agreement by the IBEW local 292, 
113.11 	or pipefitters local 539 pension plan, who were first employed before May 2, 2015, and 
113.12 	who elected to be excluded under section 5.
113.13 	(b) Any person performing the duties of a public officer in a position defined in 
113.14 	subdivision 2a, paragraph (a), clause (3), is not an independent contractor and is not an 
113.15 	employee of an independent contractor.

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

113.17 	Sec. 5. PUBLIC PENSION COVERAGE EXCLUSION FOR CERTAIN 
113.18 	TRADES PERSONNEL.
 113.19 	An electrician or pipefitter who is employed by the Minneapolis Park and Recreation 
113.20 	Board on the effective date of this section and who has pension coverage under a collective 
113.21 	bargaining agreement by the IBEW local 292, or pipefitters local 539, may elect to be 
113.22 	excluded from pension coverage by the Public Employees Retirement Association. The 
113.23 	exclusion election must be made in writing on a form prescribed by the executive director 
113.24 	of the Public Employees Retirement Association and must be filed with the executive 
113.25 	director. The exclusion election is irrevocable. Authority to make the coverage exclusion 
113.26 	expires on January 1, 2016.

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

113.28 	Sec. 6. MSRS-GENERAL; EXCLUDED SEASONAL REVENUE 
113.29 	DEPARTMENT EMPLOYMENT SERVICE CREDIT PURCHASE.
 113.30 	(a) An eligible person described in paragraph (b) is eligible to make a service credit 
113.31 	purchase described in paragraph (c) for the period of service indicated in paragraph (d) 
113.32 	if made by the expiration date specified in paragraph (e).
113.33 	(b) An eligible person is a person who:
114.1 	(1) was born on May 7, 1963;
114.2 	(2) was a seasonal employee of the Department of Revenue in fiscal years 1988, 
114.3 	1989, 1990, 1991, 1992, 1993, and 1994 and was excluded from general state employees 
114.4 	retirement plan coverage under Minnesota Statutes 1988, section 352.01, subdivision 
114.5 	2b, clause (20);
114.6 	(3) became a full-time employee of the Department of Revenue on October 12, 
114.7 	1993; and
114.8 	(4) was not eligible to purchase this period of service credit under Laws 1997, 
114.9 	chapter 241, article 8, section 7.
114.10 	(c) The service credit purchase must be made as provided in Minnesota Statutes, 
114.11 	section 356.551, except that, because of delays admitted to by the Minnesota State 
114.12 	Retirement System in providing necessary information to permit an eligible person to 
114.13 	pursue special legislation in a timely fashion during the 2014 legislative session, the 
114.14 	amount payable by an eligible person, if paid before August 1, 2015, is the full actuarial 
114.15 	value amount calculated as if the payment was to be made on June 1, 2014, with the 
114.16 	balance of the liability accruing to the general state employees retirement plan of the 
114.17 	Minnesota State Retirement System.
114.18 	(d) The period of employment available for an allowable service credit purchase 
114.19 	under this section is the period or periods of actual seasonal employment by the Department 
114.20 	of Revenue occurring in fiscal years 1988 to 1994 that was not already credited as allowable 
114.21 	service by a retirement plan listed in Minnesota Statutes, section 356.30, subdivision 3.
114.22 	(e) The service credit purchase must be made before July 1, 2017, or before the 
114.23 	person's retirement date, whichever is earlier.
114.24 	(f) Service credit for the seasonal Department of Revenue employment must be 
114.25 	granted by the general state employees retirement plan upon the receipt by the executive 
114.26 	director of the Minnesota State Retirement System of the purchase payment amount 
114.27 	under paragraph (c).
114.28 	(g) The eligible person shall provide the executive director of the Minnesota State 
114.29 	Retirement System with any relevant information pertaining to this purchase that the 
114.30 	director requests.

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

114.32 	Sec. 7. PUBLIC EMPLOYEES RETIREMENT ASSOCIATION-GENERAL; ST. 
114.33 	PAUL PUBLIC SCHOOL EMPLOYEES WITH ERRONEOUSLY REPORTED 
114.34 	EMPLOYMENT TERMINATIONS.
 115.1 	(a) An eligible person described in paragraph (b) is entitled to purchase allowable 
115.2 	service credit from the general employees retirement plan of the Public Employees 
115.3 	Retirement Association (PERA) for the period specified in paragraph (c) upon making the 
115.4 	prior service credit purchase payment indicated in paragraph (d).
115.5 	(b) An eligible person is a person who:
115.6 	(1) was born on June 18, 1952;
115.7 	(2) was initially employed by Independent School District No. 625, St. Paul, in 
115.8 	1987, in a nonteaching employment position;
115.9 	(3) was initially covered by the general employees retirement plan of PERA;
115.10 	(4) was erroneously reported to PERA by Independent School District No. 625, St. 
115.11 	Paul, as having terminated employment in August 1993;
115.12 	(5) did not have member contributions deducted for the general employees 
115.13 	retirement plan of PERA for the period of August 1, 1993, through January 3, 1997; and
115.14 	(6) had the error discovered in 1998 and received PERA general plan allowable 
115.15 	service credit for the period of July 1, 1994, through January 3, 1997.
115.16 	(c) The period authorized for a purchase of prior allowable service credit is August 
115.17 	1, 1993, through June 30, 1994.
115.18 	(d) To purchase the prior allowable service credit in paragraph (c), the eligible 
115.19 	person shall make the member contributions that would have been deducted from the 
115.20 	person's salary if the eligible person had been included in PERA general plan retirement 
115.21 	coverage during the period of August 1, 1993, through June 30, 1994, without compound 
115.22 	interest because Independent School District No. 625, St. Paul, admitted to failing to 
115.23 	timely and fully inform an eligible person in 1998 of its reporting error to PERA that 
115.24 	caused an allowable service credit loss and agreed additionally to pay the interest charge 
115.25 	on the equivalent member contribution amount.
115.26 	(e) If an eligible person makes the payment specified under paragraph (d), 
115.27 	Independent School District No. 625, St. Paul, shall pay the balance of the full actuarial 
115.28 	value prior service credit payment amount provided for in Minnesota Statutes, section 
115.29 	356.551, within 60 days of the date on which the executive director of PERA certifies that 
115.30 	the eligible person's payment was received by PERA. If Independent School District No. 
115.31 	625, St. Paul, does not make the payment required by this paragraph in a timely manner, 
115.32 	the executive director of PERA shall certify: (1) that payment was not timely; (2) the 
115.33 	amount of the unpaid employer obligation under this paragraph; and (3) interest at a 
115.34 	monthly rate of 0.71 percent from the date on which the eligible person made the payment 
115.35 	under paragraph (d) until the first day of the first month next following the certification to 
116.1 	the commissioner of education, who shall withhold that amount from any state aid payable 
116.2 	to Independent School District No. 625, St. Paul.
116.3 	(f) Upon receipt of the payment under paragraph (d), PERA shall grant allowable 
116.4 	service credit under Minnesota Statutes, section 353.01, subdivision 16, to the eligible 
116.5 	person.
116.6 	(g) This section expires on December 31, 2016.

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

116.8 	Sec. 8. PERA-GENERAL; SERVICE CREDIT PURCHASE FOR OMITTED 
116.9 	CONTRIBUTION PERIOD; NASHVILLE TOWNSHIP EMPLOYEE.
 116.10 	(a) Notwithstanding any provision to the contrary, an eligible person described 
116.11 	in paragraph (b) is entitled to purchase from the general employees retirement plan of 
116.12 	the Public Employees Retirement Association (PERA) allowable service credit under 
116.13 	Minnesota Statutes, section 353.01, subdivision 16, for the period of omitted member 
116.14 	deductions in paragraph (c).
116.15 	(b) An eligible person is a person who:
116.16 	(1) was born on August 8, 1938;
116.17 	(2) was first employed by Nashville Township on April 1, 1994;
116.18 	(3) was eligible for retirement coverage by and membership in the general 
116.19 	employees retirement plan of PERA on July 1, 1998; and
116.20 	(4) had omitted deductions paid for allowable service for Nashville Township back 
116.21 	to July 1, 2010.
116.22 	(c) The period of prior service credit available for purchase is the period from July 1, 
116.23 	1998, to June 30, 2010, during which no member contributions for the general employees 
116.24 	retirement plan of PERA were deducted from the eligible person's salary by Nashville 
116.25 	Township, and which could not be corrected through the PERA omitted contribution 
116.26 	provision due to the three-year time limit in the provision.
116.27 	(d) The purchase payment amount payable by the eligible person is the employee 
116.28 	contributions that should have been made, plus 8.5 percent interest compounded annually 
116.29 	from the date each deduction should have occurred, until the date paid to PERA. The 
116.30 	purchase payment amount payable by Nashville Township is the balance of the full 
116.31 	actuarial value prior service credit purchase payment amount determined under Minnesota 
116.32 	Statutes, section 356.551, as of the first day of the month next following the receipt of the 
116.33 	eligible person's payment that is remaining after deducting the purchase payment amount 
116.34 	payable by the eligible person.
117.1 	(e) The payment amount due from Nashville Township under paragraph (d) must 
117.2 	be made on or before the 15th of the month next following the receipt of the eligible 
117.3 	person's payment under paragraph (d). If the Nashville Township purchase payment 
117.4 	amount is not paid in a timely fashion, the amount due accrues compound monthly interest 
117.5 	at the rate of 0.71 percent per month from the first day of the month next following the 
117.6 	receipt of the eligible person's payment until the Nashville Township purchase payment 
117.7 	amount is received by PERA. If Nashville Township fails to pay its portion of the purchase 
117.8 	payment amount to PERA 90 days after the receipt of the eligible person's payment, the 
117.9 	executive director shall collect the unpaid amount under Minnesota Statutes, section 
117.10 	353.28, subdivision 6, paragraph (a).
117.11 	(f) The eligible person must provide the executive director of PERA with any 
117.12 	relevant requested information pertaining to this service credit purchase.
117.13 	(g) Authority to make a service credit purchase under this section expires on June 30, 
117.14 	2015, or upon the eligible person's termination of employment under Minnesota Statutes, 
117.15 	section 353.01, subdivision 11a, whichever occurs earlier.

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

117.17 	ARTICLE 12
117.18 	MSRS, PERA, AND TRA ADMINISTRATIVE PROVISIONS

117.19 	Section 1. Minnesota Statutes 2014, section 352.91, subdivision 3e, is amended to read:
117.20 		Subd. 3e.Minnesota Specialty Health System-Cambridge. (a) "Covered 
117.21 	correctional service" means service by a state employee in one of the employment positions 
117.22 	with the Minnesota Specialty Health System-Cambridge specified in paragraph (b) if at 
117.23 	least 75 percent of the employee's working time is spent in direct contact with patients 
117.24 	who are in the Minnesota Specialty Health System-Cambridge and if service in such a 
117.25 	position is certified to the executive director by the commissioner of human services.
117.26 	(b) The employment positions are:
117.27 	(1) behavior analyst 1;
117.28 	(2) behavior analyst 2;
117.29 	(3) behavior analyst 3;
117.30 	(4) group supervisor;
117.31 	(5) group supervisor assistant;
117.32 	(6) human services support specialist;
117.33 	(7) residential program lead;
117.34 	(8) psychologist 2;
118.1 	(9) recreation program assistant;
118.2 	(10) recreation therapist senior;
118.3 	(11) registered nurse senior;
118.4 	(12) skills development specialist;
118.5 	(13) social worker senior;
118.6 	(14) social worker specialist; and
118.7 	(15) speech pathology specialist.
118.8 	(c) A Department of Human Services employee who was employed at the Minnesota 
118.9 	Specialty Health System-Cambridge immediately preceding the 2014 conversion to the 
118.10 	community-based homes and was in covered correctional service at the time of the 
118.11 	transition shall continue to be covered by the correctional employees retirement plan while 
118.12 	employed by and without a break in service with the Department of Human Services in 
118.13 	the direct care and treatment services administration of patients.

118.14 	EFFECTIVE DATE. This section is effective retroactively from August 1, 2014.

118.15 	Sec. 2. Minnesota Statutes 2014, section 352B.10, subdivision 5, is amended to read:
118.16 		Subd. 5.Optional annuity. A disabilitant may elect, in lieu of spousal survivorship 
118.17 	coverage under section 352B.11, subdivision 2b, the normal disability benefit or an 
118.18 	optional annuity as provided in section 352B.08, subdivision 3. The choice of an optional 
118.19 	annuity must be made in writing, on a form prescribed by the executive director, and must 
118.20 	may be made before the commencement of the payment of the disability benefit, or. If the 
118.21 	disabilitant did not select an optional annuity at the time of application, the disabilitant 
118.22 	may select an optional annuity under this section within 90 days before reaching age 55 
118.23 	or within 90 days before reaching the five-year anniversary of the effective date of the 
118.24 	disability benefit, whichever is later. The optional annuity is effective on the date on 
118.25 	which the disability benefit begins to accrue, or the month following the attainment of age 
118.26 	55 or following the five-year anniversary of the effective date of the disability benefit, 
118.27 	whichever is later.

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

118.29 	Sec. 3. Minnesota Statutes 2014, section 352B.105, is amended to read:
118.30 	352B.105 TERMINATION OF DISABILITY BENEFITS.
118.31 		Subdivision 1.Termination. Disability benefits payable under section 352B.10
118.32 	must terminate on the transfer date,on which the disabilitant transfers status as a 
118.33 	disabilitant to status as a retirement annuitant.
119.1 		Subd. 2.Pre-July 1, 2015, disabilitants. The transfer date for a person whose 
119.2 	disability benefits began to accrue before July 1, 2015, and who is still disabled is the end 
119.3 	of the month in which the disabilitant becomes 65 years old or the five-year anniversary 
119.4 	of the effective date of the disability benefit, whichever is later. If the disabilitant is still 
119.5 	disabled on the transfer date, the disabilitant must be deemed to be a retired member and, 
119.6 	if the disabilitant had chosen an optional annuity under section 352B.10, subdivision 5, 
119.7 	must receive an annuity under the terms of the optional annuity previously chosen. If the 
119.8 	disabilitant had not chosen an optional annuity under section 352B.10, subdivision 5, the 
119.9 	disabilitant may then choose to receive either a normal retirement annuity computed under 
119.10 	section 352B.08, subdivision 2, or an optional annuity as provided in section 352B.08, 
119.11 	subdivision 3. An optional annuity must be chosen within 90 days of attaining the transfer 
119.12 	date. If an optional annuity is chosen, the optional annuity accrues on the first of the 
119.13 	month next following the transfer date.
119.14 		Subd. 3.Post-June 30, 2015, disabilitants. The transfer date for a person whose 
119.15 	disability benefits began to accrue after June 30, 2015, and who is still disabled is the end 
119.16 	of the month in which the disabilitant becomes 55 years old or the five-year anniversary of 
119.17 	the effective date of the disability benefit, whichever is later.

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

119.19 	Sec. 4. Minnesota Statutes 2014, section 353.01, subdivision 10, is amended to read:
119.20 		Subd. 10.Salary. (a) Subject to the limitations of section 356.611, "salary" means:
119.21 	(1) the wages or periodic compensation payable to a public employee by the 
119.22 	employing governmental subdivision before:
119.23 	(i) employee retirement deductions that are designated as picked-up contributions 
119.24 	under section 356.62;
119.25 	(ii) any employee-elected deductions for deferred compensation, supplemental 
119.26 	retirement plans, or other voluntary salary reduction programs that would have otherwise 
119.27 	been available as a cash payment to the employee; and
119.28 	(iii) employee deductions for contributions to a supplemental plan or to a 
119.29 	governmental trust established under section 356.24, subdivision 1, clause (7), to save for 
119.30 	postretirement health care expenses, unless otherwise excluded under paragraph (b);
119.31 	(2) for a public employee who is covered by a supplemental retirement plan under 
119.32 	section 356.24, subdivision 1, clause (8), (9), (10), or (12), the employer contributions 
119.33 	to the applicable supplemental retirement plan when an agreement between the parties 
119.34 	establishes that the contributions will either result in a mandatory reduction of employees' 
120.1 	wages through payroll withholdings, or be made in lieu of an amount that would otherwise 
120.2 	be paid as wages;
120.3 	(3) a payment from a public employer through a grievance proceeding, settlement, 
120.4 	or court order that is attached to a specific earnings period in which the employee's regular 
120.5 	salary was not earned or paid to the member due to a suspension or a period of involuntary 
120.6 	termination that is not a wrongful discharge under section 356.50; provided the amount is 
120.7 	not less than the equivalent of the average of the hourly base salary rate in effect during 
120.8 	the last six months of allowable service prior to the suspension or period of involuntary 
120.9 	termination, plus any applicable increases awarded during the period that would have been 
120.10 	paid under a collective bargaining agreement or personnel policy but for the suspension 
120.11 	or involuntary termination, multiplied by the average number of regular hours for which 
120.12 	the employee was compensated during the six months of allowable service prior to the 
120.13 	suspension or period of involuntary termination, but not to exceed the compensation that 
120.14 	the public employee would have earned if regularly employed during the applicable period;
120.15 	(4) the amount paid tofor a member who is absent from employment by reason 
120.16 	of personal, parental, or militarydue to an authorized leave of absence, other than an 
120.17 	authorized medical leave of absence, the compensation paid during the leave if equivalent 
120.18 	to the hourly base salary rate in effect during the six months of allowable service, or 
120.19 	portions thereof, prior to the leave, multiplied by the average number of regular hours 
120.20 	for which the employee was compensated during the six months of allowable service 
120.21 	prior to the applicable leave of absence;
120.22 	(5) the amount paid tofor a member who is absent from employment by reason of an 
120.23 	authorized medical leave of absence, the compensation paid during the leave if specified 
120.24 	in advance to be at least one-half of, but no more than equal to, the earnings the member 
120.25 	received, on which contributions were reported and allowable service credited during the 
120.26 	six months immediately preceding the medical leave of absence; and
120.27 	(6) for a public employee who receives performance or merit bonus payment under 
120.28 	a written compensation plan, policy, or collective bargaining agreement in addition 
120.29 	to regular salary or in lieu of regular salary increases, the compensation paid to the 
120.30 	employee for attaining or exceeding performance goals, duties, or measures during a 
120.31 	specified period of employment.
120.32 	(b) Salary does not mean:
120.33 	(1) fees paid to district court reporters;
120.34 	(2) unused annual leave, vacation, or sick leave payments, in the form of lump-sum 
120.35 	or periodic payments;
121.1 	(3) for the donor, payment to another person of the value of hours donated under a 
121.2 	benevolent vacation, personal, or sick leave donation program;
121.3 	(4) any form of severance or retirement incentive payments;
121.4 	(5) an allowance payment or per diem payments for or reimbursement of expenses;
121.5 	(6) lump-sum settlements not attached to a specific earnings period;
121.6 	(7) workers' compensation payments or disability insurance payments, including 
121.7 	payments from employer self-insurance arrangements;
121.8 	(8) employer-paid amounts used by an employee toward the cost of insurance 
121.9 	coverage, flexible spending accounts, cafeteria plans, health care expense accounts, day 
121.10 	care expenses, or any payments in lieu of any employer-paid group insurance coverage, 
121.11 	including the difference between single and family rates that may be paid to a member with 
121.12 	single coverage and certain amounts determined by the executive director to be ineligible;
121.13 	(9) employer-paid fringe benefits, including, but not limited to:
121.14 	(i) employer-paid premiums or supplemental contributions for employees for all 
121.15 	types of insurance;
121.16 	(ii) membership dues or fees for the use of fitness or recreational facilities;
121.17 	(iii) incentive payments or cash awards relating to a wellness program;
121.18 	(iv) the value of any nonmonetary benefits;
121.19 	(v) any form of payment made in lieu of an employer-paid fringe benefit;
121.20 	(vi) an employer-paid amount made to a deferred compensation or tax-sheltered 
121.21 	annuity program; and
121.22 	(vii) any amount paid by the employer as a supplement to salary, either as a 
121.23 	lump-sum amount or a fixed or matching amount paid on a recurring basis, that is not 
121.24 	available to the employee as cash;
121.25 	(10) the amount equal to that which the employing governmental subdivision would 
121.26 	otherwise pay toward single or family insurance coverage for a covered employee when, 
121.27 	through a contract or agreement with some but not all employees, the employer:
121.28 	(i) discontinues, or for new hires does not provide, payment toward the cost of the 
121.29 	employee's selected insurance coverages under a group plan offered by the employer;
121.30 	(ii) makes the employee solely responsible for all contributions toward the cost of 
121.31 	the employee's selected insurance coverages under a group plan offered by the employer, 
121.32 	including any amount the employer makes toward other employees' selected insurance 
121.33 	coverages under a group plan offered by the employer; and
121.34 	(iii) provides increased salary rates for employees who do not have any 
121.35 	employer-paid group insurance coverages;
122.1 	(11) except as provided in section 353.86 or 353.87, compensation of any kind 
122.2 	paid to volunteer ambulance service personnel or volunteer firefighters, as defined in 
122.3 	subdivision 35 or 36;
122.4 	(12) the amount of compensation that exceeds the limitation provided in section 
122.5 	356.611;
122.6 	(13) amounts paid by a federal or state grant for which the grant specifically 
122.7 	prohibits grant proceeds from being used to make pension plan contributions, unless the 
122.8 	contributions to the plan are made from sources other than the federal or state grant; and
122.9 	(14) bonus pay that is not performance or merit pay under paragraph (a), clause (6).
122.10 	(c) Amounts, other than those provided under paragraph (a), clause (3), provided to 
122.11 	an employee by the employer through a grievance proceeding, a court order, or a legal 
122.12 	settlement are salary only if the settlement or court order is reviewed by the executive 
122.13 	director and the amounts are determined by the executive director to be consistent with 
122.14 	paragraph (a) and prior determinations.

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

122.16 	Sec. 5. Minnesota Statutes 2014, section 353.01, subdivision 11a, is amended to read:
122.17 		Subd. 11a.Termination of public service. (a) "Termination of public service" 
122.18 	occurs (1) when:
122.19 	(1) a member resigns or is dismissed from public service by the employing 
122.20 	governmental subdivision and the employee does not, within 30 days of the date the 
122.21 	employment relationship ended, return to an employment position in the samewith 
122.22 	a governmental subdivision; or
122.23 	(2) when the employer-employee relationship is severed due to the expiration of a 
122.24 	layoff under subdivision 12 or 12c.
122.25 	(b) The termination of public service must be recorded in the association records 
122.26 	upon receipt of an appropriate notice from the governmental subdivision.
122.27 	(c) A termination of public service does not occur if,:
122.28 	(1) prior to termination of service, the member has an agreement, verbal or written, 
122.29 	to returnprovide service to a governmental subdivision as an employee,or to the same 
122.30 	governmental subdivision as an independent contractor, or employee of an independent 
122.31 	contractor.; or
122.32 	(2) within 30 days after the date the employment relationship ended, the member 
122.33 	provides service to the same governmental subdivision as an independent contractor or 
122.34 	employee of an independent contractor.

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

123.2 	Sec. 6. Minnesota Statutes 2014, section 353.01, subdivision 16, is amended to read:
123.3 		Subd. 16.Allowable service; limits and computation. (a) "Allowable service" 
123.4 	means:
123.5 	(1) service during years of actual membership in the course of which employee 
123.6 	deductions were withheld from salary and contributions were made at the applicable rates 
123.7 	under section 353.27, 353.65, or 353E.03;
123.8 	(2) periods of service covered by payments in lieu of salary deductions under 
123.9 	sections 353.27, subdivisionsubdivisions 12 and 12a, and 353.35;
123.10 	(3) service in years during which the public employee was not a member but for 
123.11 	which the member later elected, while a member, to obtain credit by making payments to 
123.12 	the fund as permitted by any law then in effect;
123.13 	(4) a period of authorized leave of absence with payduring which the employee 
123.14 	receives pay as specified in subdivision 10, paragraph (a), clause (4) or (5), from which 
123.15 	deductions for employee contributions are made, deposited, and credited to the fund;
123.16 	(5) a period of authorized personal, parental, or medical leave of absence without 
123.17 	pay, including a leave of absence covered under the federal Family Medical Leave Act, 
123.18 	that does not exceed one year or with pay that is not included in the definition of salary 
123.19 	under subdivision 10, paragraph (a), clause (4) or (5), for which salary deductions are 
123.20 	not authorized, and for which a member obtained service credit for each month inup 
123.21 	to 12 months of the authorized leave period by payment under section 353.0161or 
123.22 	353.0162, to the fund made in place of salary deductions. An employee must return to 
123.23 	public service and render a minimum of three months of allowable service in order to be 
123.24 	eligible to make payment under section 353.0161 for a subsequent authorized leave of 
123.25 	absence without pay. Upon payment, the employee must be granted allowable service 
123.26 	credit for the purchased period;
123.27 	(6) a periodic, repetitive leave that is offered to all employees of a governmental 
123.28 	subdivision. The leave program may not exceed 208 hours per annual normal work cycle 
123.29 	as certified to the association by the employer. A participating member obtains service 
123.30 	credit by making employee contributions in an amount or amounts based on the member's 
123.31 	average salary, excluding overtime pay, that would have been paid if the leave had not been 
123.32 	taken. The employer shall pay the employer and additional employer contributions on 
123.33 	behalf of the participating member. The employee and the employer are responsible to pay 
123.34 	interest on their respective shares at the rate of 8.5 percent a year, compounded annually, 
123.35 	from the end of the normal cycle until full payment is made. An employer shall also make 
124.1 	the employer and additional employer contributions, plus 8.5 percent interest, compounded 
124.2 	annually, on behalf of an employee who makes employee contributions but terminates 
124.3 	public service. The employee contributions must be made within one year after the end of 
124.4 	the annual normal working cycle or within 30 days after termination of public service, 
124.5 	whichever is sooner. The executive director shall prescribe the manner and forms to be 
124.6 	used by a governmental subdivision in administering a periodic, repetitive leave. Upon 
124.7 	payment, the member must be granted allowable service credit for the purchased period;
124.8 	(7) an authorized temporary or seasonal layoff under subdivision 12, limited to three 
124.9 	months allowable service per authorized temporary or seasonal layoff in one calendar year. 
124.10 	An employee who has received the maximum service credit allowed for an authorized 
124.11 	temporary or seasonal layoff must return to public service and must obtain a minimum of 
124.12 	three months of allowable service subsequent to the layoff in order to receive allowable 
124.13 	service for a subsequent authorized temporary or seasonal layoff;
124.14 	(8) a period during which a member is absent from employment by a governmental 
124.15 	subdivision by reason of service in the uniformed services, as defined in United States 
124.16 	Code, title 38, section 4303(13), if the member returns to public service with the same 
124.17 	governmental subdivision upon discharge from service in the uniformed service within the 
124.18 	time frames required under United States Code, title 38, section 4312(e), provided that 
124.19 	the member did not separate from uniformed service with a dishonorable or bad conduct 
124.20 	discharge or under other than honorable conditions. The service must be credited if the 
124.21 	member pays into the fund equivalent employee contributions based upon the contribution 
124.22 	rate or rates in effect at the time that the uniformed service was performed multiplied by 
124.23 	the full and fractional years being purchased and applied to the annual salary rate. The 
124.24 	annual salary rate is the average annual salary during the purchase period that the member 
124.25 	would have received if the member had continued to be employed in covered employment 
124.26 	rather than to provide uniformed service, or, if the determination of that rate is not 
124.27 	reasonably certain, the annual salary rate is the member's average salary rate during the 
124.28 	12-month period of covered employment rendered immediately preceding the period of the 
124.29 	uniformed service. Payment of the member equivalent contributions must be made during 
124.30 	a period that begins with the date on which the individual returns to public employment 
124.31 	and that is three times the length of the military leave period, or within five years of the 
124.32 	date of discharge from the military service, whichever is less. If the determined payment 
124.33 	period is less than one year, the contributions required under this clause to receive service 
124.34 	credit may be made within one year of the discharge date. Payment may not be accepted 
124.35 	following 30 days after termination of public service under subdivision 11a. If the member 
124.36 	equivalent contributions provided for in this clause are not paid in full, the member's 
125.1 	allowable service credit must be prorated by multiplying the full and fractional number 
125.2 	of years of uniformed service eligible for purchase by the ratio obtained by dividing the 
125.3 	total member contributions received by the total member contributions otherwise required 
125.4 	under this clause. The equivalent employer contribution, and, if applicable, the equivalent 
125.5 	additional employer contribution must be paid by the governmental subdivision employing 
125.6 	the member if the member makes the equivalent employee contributions. The employer 
125.7 	payments must be made from funds available to the employing unit, using the employer 
125.8 	and additional employer contribution rate or rates in effect at the time that the uniformed 
125.9 	service was performed, applied to the same annual salary rate or rates used to compute the 
125.10 	equivalent member contribution. The governmental subdivision involved may appropriate 
125.11 	money for those payments. The amount of service credit obtainable under this section may 
125.12 	not exceed five years unless a longer purchase period is required under United States Code, 
125.13 	title 38, section 4312. The employing unit shall pay interest on all equivalent member and 
125.14 	employer contribution amounts payable under this clause. Interest must be computed at a 
125.15 	rate of 8.5 percent compounded annually from the end of each fiscal year of the leave or the 
125.16 	break in service to the end of the month in which the payment is received. Upon payment, 
125.17 	the employee must be granted allowable service credit for the purchased period; or
125.18 	(9) a period specified under section 353.0162.
125.19 	(b) For calculating benefits under sections 353.30, 353.31, 353.32, and 353.33 for 
125.20 	state officers and employees displaced by the Community Corrections Act, chapter 401, 
125.21 	and transferred into county service under section 401.04, "allowable service" means the 
125.22 	combined years of allowable service as defined in paragraph (a), clauses (1) to (6), and 
125.23 	section 352.01, subdivision 11.
125.24 	(c)(b) No member may receive more than 12 months of allowable service credit in a 
125.25 	year either for vesting purposes or for benefit calculation purposes. For an active member 
125.26 	who was an active member of the former Minneapolis Firefighters Relief Association 
125.27 	on December 29, 2011, "allowable service" is the period of service credited by the 
125.28 	Minneapolis Firefighters Relief Association as reflected in the transferred records of the 
125.29 	association up to December 30, 2011, and the period of service credited under paragraph 
125.30 	(a), clause (1), after December 30, 2011. For an active member who was an active member 
125.31 	of the former Minneapolis Police Relief Association on December 29, 2011, "allowable 
125.32 	service" is the period of service credited by the Minneapolis Police Relief Association as 
125.33 	reflected in the transferred records of the association up to December 30, 2011, and the 
125.34 	period of service credited under paragraph (a), clause (1), after December 30, 2011.
125.35 	(d) MS 2002 [Expired]

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

126.1 	Sec. 7. Minnesota Statutes 2014, section 353.01, subdivision 28, is amended to read:
126.2 		Subd. 28.Retirement. (a) "Retirement" means the commencement of the payment 
126.3 	of an annuity based on a date designated by the board of trustees by the association. This 
126.4 	date determines the rights under this chapter which occur either before or after retirement. 
126.5 	A right to retirement is subject to termination of public service under subdivision 11a. 
126.6 	A right to retirement requires a complete and continuous separation for 30 days from 
126.7 	employment as a public employee and from the provision of paid services to that employer.
126.8 	(b) An individual who separates from employment as a public employee and who, 
126.9 	within 30 days of separation, returns to provide service to a governmental subdivision 
126.10 	as an independent contractor or as an employee of an independent contractor, has not 
126.11 	satisfied the separation requirements under paragraph (a).
126.12 	(c)(b) Notwithstanding the 30-day separation requirement under paragraph (a), a 
126.13 	member of a defined benefit plan under this chapter, who also participates in the public 
126.14 	employees defined contribution plan under chapter 353D for other public service, may be 
126.15 	paid, if eligible, a retirement annuity from the defined benefit plan while participating in the 
126.16 	defined contribution plan. A retirement annuity is also payable from a defined benefit plan 
126.17 	under this chapter to an eligible member who terminates public service and who, within 
126.18 	30 days of separation, takes office as an elected official of a governmental subdivision.
126.19 	(d)(c) Elected officials included in association membership under subdivisions 2a 
126.20 	and 2d meet the 30-day separation requirement under this section by resigning from office 
126.21 	before filing for a subsequent term in the same office and by remaining completely and 
126.22 	continuously separated from that office for 30 days prior to the date of the election.

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

126.24 	Sec. 8. Minnesota Statutes 2014, section 353.01, subdivision 36, is amended to read:
126.25 		Subd. 36.Volunteer firefighter. For purposes of this chapter, a person is 
126.26 	considered a "volunteer firefighter" for all service for which the person receives credit 
126.27 	in an association or fund operating under chapter 424A or credit in the retirement plan 
126.28 	established under chapter 353G.

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

126.30 	Sec. 9. Minnesota Statutes 2014, section 353.0161, is amended by adding a subdivision 
126.31 	to read:
127.1 		Subd. 3.Restriction on subsequent purchases. To purchase salary credit or 
127.2 	service credit for a subsequent authorized leave of absence period, the member must return 
127.3 	to public service and render a minimum of three months of allowable service credit.

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

127.5 	Sec. 10. Minnesota Statutes 2014, section 353.0162, is amended to read:
127.6 	353.0162 REDUCED SALARY PERIODS SALARY CREDIT PURCHASE.
127.7 	(a) A member may purchase additional salary credit for a period specified in this 
127.8 	section.
127.9 	(b) The applicable period is a period during which the member is receiving a reduced 
127.10 	salary from the employer while the member is:
127.11 	(1) receiving temporary workers' compensation payments related to the member's 
127.12 	service to the public employer;
127.13 	(2) on an authorized medical leave of absence; or
127.14 	(3) on an authorized partial paid leave of absence as a result of a budgetary or salary 
127.15 	savings program offered or mandated by a governmental subdivision.
127.16 	(c) The differential salary amount is the difference between the average monthly 
127.17 	salary received by the member during the period of reduced salary under this section and 
127.18 	the average monthly salary of the member, excluding overtime, on which contributions 
127.19 	to the applicable plan were made during the period of the last six months of covered 
127.20 	employment occurring immediately before the period of reduced salary, applied to the 
127.21 	member's normal employment period, measured in hours or otherwise, as applicable.
127.22 	(d) To receive eligible salary credit, the member shall pay an amount equal to:
127.23 	(1) the applicable employee contribution rate under section 353.27, subdivision 
127.24 	2; 353.65, subdivision 2; or 353E.03, subdivision 1, as applicable, multiplied by the 
127.25 	differential salary amount;
127.26 	(2) plus an employer equivalent payment equal to the applicable employer 
127.27 	contribution rate in section 353.27, subdivision 3; 353.65, subdivision 3; or 353E.03, 
127.28 	subdivision 2, as applicable, multiplied by the differential salary amount;
127.29 	(3) plus, if applicable, an equivalent employer additional amount equal to the 
127.30 	additional employer contribution rate in section 353.27, subdivision 3a, multiplied by the 
127.31 	differential salary amount.
127.32 	(e) The employer, by appropriate action of its governing body and documented in its 
127.33 	official records, may pay the employer equivalent contributions and, as applicable, the 
127.34 	equivalent employer additional contributions on behalf of the member.
128.1 	(f) Payment under this section must include interest on the contribution amount 
128.2 	or amounts, whichever applies, at an 8.5 percent annual rate, prorated for applicable 
128.3 	months from the date on which the period of reduced salary specified under this section 
128.4 	terminates to the date on which the payment or payments are received by the executive 
128.5 	director. Payment under this section must be completed within the earlier of 30 days from 
128.6 	termination of public service by the employee under section 353.01, subdivision 11a, or 
128.7 	one year after the termination of the period specified in paragraph (b), as further restricted 
128.8 	under this section.
128.9 	(g) The period for which additional allowable salary credit may be purchased is 
128.10 	limited to the period during which the person receives temporary workers' compensation 
128.11 	payments or for those business years in which the governmental subdivision offers or 
128.12 	mandates a budget or salary savings program, as certified to the executive director by a 
128.13 	resolution of the governing body of the governmental subdivision. For an authorized 
128.14 	medical leave of absence, the period for which allowable salary credit may be purchased 
128.15 	may not exceed 12 consecutive months of authorized medical leave.
128.16 	(h) To purchase salary credit for a subsequent period of temporary workers' 
128.17 	compensation benefits or subsequent authorized medical leave of absence, the member 
128.18 	must return to public service and render a minimum of three months of allowable service.

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

128.20 	Sec. 11. Minnesota Statutes 2014, section 353.03, subdivision 3, is amended to read:
128.21 		Subd. 3.Duties and powers. (a) The board shall:
128.22 	(1) elect a president and vice-president;
128.23 	(2) approve the staffing complement, as recommended by the executive director, 
128.24 	necessary to administer the fund; 
128.25 	(3) adopt bylaws for its own government and for the management of the fund 
128.26 	consistent with the laws of the state and may modify them at pleasure;
128.27 	(4) adopt, alter, and enforce reasonable rules consistent with the laws of the state and 
128.28 	the terms of the applicable benefit plans for the administration and management of the 
128.29 	fund, for the payment and collection of payments from members and for the payment of 
128.30 	withdrawals and benefits, and that are necessary in order to comply with the applicable 
128.31 	federal Internal Revenue Service and Department of Labor requirements;
128.32 	(5) pass upon and allow or disallow all applications for membership in the fund and 
128.33 	allow or disallow claims for withdrawals, pensions, or benefits payable from the fund;
128.34 	(6) authorize procedures for use of electronic signatures as defined in section 
128.35 	325L.02, paragraph (h), on applications and forms required by the association;
129.1 	(6)(7) adopt an appropriate mortality table based on experience of the fund as 
129.2 	recommended by the association actuary and approved under section 356.215, subdivision 
129.3 	18, with interest set at the rate specified in section 356.215, subdivision 8;
129.4 	(7)(8) provide for the payment out of the fund of the cost of administering this 
129.5 	chapter, of all necessary expenses for the administration of the fund and of all claims for 
129.6 	withdrawals, pensions, or benefits allowed;
129.7 	(8)(9) approve or disapprove all recommendations and actions of the executive 
129.8 	director made subject to its approval or disapproval by subdivision 3a; and
129.9 	(9)(10) approve early retirement and optional annuity factors, subject to review by 
129.10 	the actuary retained by the Legislative Commission on Pensions and Retirement; establish 
129.11 	the schedule for implementation of the approved factors; and notify the Legislative 
129.12 	Commission on Pensions and Retirement of the implementation schedule.
129.13 	(b) In passing upon all applications and claims, the board may summon, swear, hear, 
129.14 	and examine witnesses and, in the case of claims for disability benefits, may require the 
129.15 	claimant to submit to a medical examination by a physician of the board's choice, at the 
129.16 	expense of the fund, as a condition precedent to the passing on the claim, and, in the 
129.17 	case of all applications and claims, may conduct investigations necessary to determine 
129.18 	their validity and merit.
129.19 	(c) The board may continue to authorize the sale of life insurance to members under 
129.20 	the insurance program in effect on January 1, 1985, but must not change that program 
129.21 	without the approval of the commissioner of management and budget. The association 
129.22 	shall not receive any financial benefit from the life insurance program beyond the amount 
129.23 	necessary to reimburse the association for costs incurred in administering the program. 
129.24 	The association shall not engage directly or indirectly in any other activity involving the 
129.25 	sale or promotion of goods or services, or both, whether to members or nonmembers.
129.26 	(d) The board shall establish procedures governing reimbursement of expenses 
129.27 	to board members. These procedures must define the types of activities and expenses 
129.28 	that qualify for reimbursement, must provide that all out-of-state travel be authorized 
129.29 	by the board, and must provide for the independent verification of claims for expense 
129.30 	reimbursement. The procedures must comply with the applicable rules and policies of the 
129.31 	Department of Management and Budget and the Department of Administration.
129.32 	(e) The board may purchase fiduciary liability insurance and official bonds for the 
129.33 	officers and members of the board of trustees and employees of the association and may 
129.34 	purchase property insurance or may establish a self-insurance risk reserve including, but 
129.35 	not limited to, data processing insurance and "extra-expense" coverage.

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

130.1 	Sec. 12. Minnesota Statutes 2014, section 353.031, subdivision 5, is amended to read:
130.2 		Subd. 5.Medical adviser. The executive director may contract with an accredited 
130.3 	independent organization specializing in disability determinations or a licensed physicians 
130.4 	or physicians on the staff of the state commissioner of health, as designated by the 
130.5 	commissioner, physician to be the medical adviser of the association. The medical adviser 
130.6 	shall review all medical reports submitted to the association, including the findings of 
130.7 	an independent medical examination requested under this section, and shall advise the 
130.8 	executive director.

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

130.10 	Sec. 13. Minnesota Statutes 2014, section 353.031, subdivision 10, is amended to read:
130.11 		Subd. 10.Restoring forfeited service and salary credit. (a) To restore forfeited 
130.12 	service and salary credit, a repayment of a refund must be made within six months after 
130.13 	the effective date of disability benefits or within six months after the date of the filing of 
130.14 	the disability application, whichever is later.
130.15 	(b) Except for the salary credit purchase authorized under section 353.0162, 
130.16 	paragraph (b), clause (1), no purchase of prior service or payment made in lieu of salary 
130.17 	deductions otherwise authorized under section 353.01or 353.0162 may be made after the 
130.18 	occurrence of the disability for which an application is filed under this section.

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

130.20 	Sec. 14. Minnesota Statutes 2014, section 353.27, subdivision 10, is amended to read:
130.21 		Subd. 10.Employer exclusion reports. (a) The head of a department or a 
130.22 	designated representative shall annually furnish the executive director with an exclusion 
130.23 	report listing and certifying only those employees in potentially PERA general employees 
130.24 	retirement plan-eligible positions who were not reported as members of the general 
130.25 	employees retirement plan and who worked during the school year for school employees 
130.26 	and calendar year for nonschool employees. The department head must certify the 
130.27 	accuracy and completeness of the exclusion report to the association. The executive 
130.28 	director shall prescribe the manner and forms, including standardized exclusion codes, to 
130.29 	be used by a governmental subdivision in preparing and filing exclusion reports. Also, the 
130.30 	executive director shall check the exclusion report to ascertain whether any omissions 
130.31 	have been made by a department head in the reporting of new public employees for 
130.32 	membership. The executive director may delegate an association employee under section 
131.1 	353.03, subdivision 3a, paragraph (b), clause (5), to conduct a field audit to review the 
131.2 	payroll records of a governmental subdivision.
131.3 	(b) If an employer fails to comply with the reporting requirements under this 
131.4 	subdivision, the executive director may assess a fine of $25 for each failure if the 
131.5 	association staff has notified the employer of the noncompliance and attempted to obtain 
131.6 	the missing data or form from the employer for a period of more than three months.

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

131.8 	Sec. 15. Minnesota Statutes 2014, section 353.29, subdivision 7, is amended to read:
131.9 		Subd. 7.Annuities; accrual. (a) Except as to elected public officials, a retirement 
131.10 	annuity granted under this chapter begins with the first day of the first calendar month 
131.11 	after the date of termination of public service. The annuity must be paid in equal monthly 
131.12 	installments and does not accrue beyond the end of the month in which entitlement to the 
131.13 	annuity has terminated. If the annuitant dies prior to negotiating the check for the month 
131.14 	in which death occurs, payment must be made to the surviving spouse, or if none, to the 
131.15 	designated beneficiary, or if none, to the estate.
131.16 	(b) An annuity granted to an elective public official accrues on the day following 
131.17 	expiration of public office or expiration of the right to hold that office. The annuity for the 
131.18 	month during which the expiration occurred is prorated accordingly.
131.19 	(c) An annuity, once granted, must not be increased, decreased, or revoked except 
131.20 	under this chapter.
131.21 	(d) An annuity payment may be made retroactive for up to one year prior to that month 
131.22 	in which a complete application is received by the executive director under subdivision 4.
131.23 	(e) If an annuitant dies before negotiating the check for the month in which death 
131.24 	occurs, payment must first be made to the surviving spouse, or if none, then to the 
131.25 	designated beneficiary, or if none, lastly to the estate.

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

131.27 	Sec. 16. Minnesota Statutes 2014, section 353.33, subdivision 6, is amended to read:
131.28 		Subd. 6.Continuing eligibility for benefits. Disability benefits are contingent upon 
131.29 	a disabled person's participation in a vocational rehabilitation evaluationassessment if the 
131.30 	executive director determines that the disabled person may be able to return to a gainful 
131.31 	occupation. If, after a review by the executive director under section 353.031, subdivision 
131.32 	8, a member is found to be no longer totally and permanently disabled, payments must 
132.1 	cease the first of the month following the expiration of a 30-day period after the member 
132.2 	receives a certified letter notifying the member that payments will cease.

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

132.4 	Sec. 17. Minnesota Statutes 2014, section 353.33, subdivision 13, is amended to read:
132.5 		Subd. 13.Postretirement adjustment eligibility. (a) A disability benefit under this 
132.6 	section is eligible for postretirement adjustments under section 356.415.
132.7 	(b) When a disability benefit terminates under subdivision 11, the retirement annuity 
132.8 	elected by the individual must include all prior adjustments provided under Minnesota 
132.9 	Statutes 2008, section 11A.18, through January 1, 2009, and thereafter as provided 
132.10 	in section 356.415.

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

132.12 	Sec. 18. Minnesota Statutes 2014, section 353.37, subdivision 1, is amended to read:
132.13 		Subdivision 1.Salary maximums. (a) The annuity of a person otherwise eligible 
132.14 	for an annuity from the general employees retirement plan of the Public Employees 
132.15 	Retirement Association, the public employees police and fire retirement plan, or the local 
132.16 	government correctional employees retirement plan must be suspended under subdivision 
132.17 	2 or reduced under subdivision 3, whichever results in the higher annual annuity amount, if 
132.18 	the person reenters public service as a nonelective employee of a governmental subdivision 
132.19 	in a position covered by this chapter or returns to work as an employee of a labor 
132.20 	organization that represents public employees who are association members under this 
132.21 	chapter and salary for the reemployment service exceeds the annual maximum earnings 
132.22 	allowable for that age for the continued receipt of full benefit amounts monthly under the 
132.23 	federal Old Age, Survivors and Disability Insurance Program as set by the secretary of 
132.24 	health and human services under United States Code, title 42, section 403, in any calendar 
132.25 	year. If the person has not yet reached the minimum age for the receipt of Social Security 
132.26 	benefits, the maximum salary for the person is equal to the annual maximum earnings 
132.27 	allowable for the minimum age for the receipt of Social Security benefits.
132.28 	(b) The provisions of paragraph (a) do not apply to the members of the MERF 
132.29 	division.

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

132.31 	Sec. 19. Minnesota Statutes 2014, section 353.656, subdivision 1a, is amended to read:
133.1 		Subd. 1a.Total and permanent duty disability; computation of benefits. (a) A 
133.2 	member of the police and fire plan, other than a firefighter covered by section 353.6511, or 
133.3 	a police officer covered by section 353.6512, whose disabling condition is determined 
133.4 	to be a duty disability that is also a permanent and total disability as defined in section 
133.5 	353.01, subdivision 19, is entitled to receive, for life, disability benefits in an amount equal 
133.6 	to 60 percent of the average salary as defined in section 353.01, subdivision 17a, plus an 
133.7 	additional 3.0 percent of that average salary for each year of service in excess of 20 years.
133.8 	(b) A disability benefit payable under paragraph (a) is subject to eligibility review 
133.9 	under section 353.33, subdivision 6, but the review may be waived if the executive director 
133.10 	receives a written statement from the association's medical advisor that no improvement 
133.11 	can be expected in the member's disabling condition that was the basis for payment of the 
133.12 	benefit under paragraph (a). A member receiving a disability benefit under this subdivision 
133.13 	who is found to no longer be permanently and totally disabled as defined under section 
133.14 	353.01, subdivision 19, but continues to meet the definition for receipt of a duty disability 
133.15 	under section 353.01, subdivision 41, is subject to subdivision 1 upon written notice from 
133.16 	the association's medical advisor that the person is no longer considered permanently and 
133.17 	totally disabled, and may upon application, elect an optional annuity under subdivision 1b.
133.18 	(c) If a member approved for disability benefits under this subdivision dies before 
133.19 	attaining normal retirement age as defined in section 353.01, subdivision 37, paragraph 
133.20 	(b), or within 60 months of the effective date of the disability, whichever is later, 
133.21 	the surviving spouse is entitled to receive a survivor benefit under section 353.657, 
133.22 	subdivision 2, paragraph (a), clause (1), if the death is the direct result of the disabling 
133.23 	condition for which disability benefits were approved, or section 353.657, subdivision 
133.24 	2, paragraph (a), clause (2), if the death is not directly related to the disabling condition 
133.25 	for which benefits were approved under this subdivision.
133.26 	(d) If the election of an actuarial equivalent optional annuity is not made at the time 
133.27 	the permanent and total disability benefit accrues, an election must be made within 90 
133.28 	days before the member attains normal retirement age as defined under section 353.01, 
133.29 	subdivision 37, paragraph (b), or having collected total and permanent disability benefits 
133.30 	for 60 months, whichever is later. If a member receiving disability benefits who has 
133.31 	dependent children dies, subdivision 6a, paragraph (c), applies.

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

133.33 	Sec. 20. Minnesota Statutes 2014, section 353.656, subdivision 1b, is amended to read:
133.34 		Subd. 1b.Optional annuity election. (a) A disabled member of the police and fire 
133.35 	fund may elect to receive the normal disability benefit or an actuarial equivalent optional 
134.1 	annuity. If the election of an actuarial equivalent optional annuity is made before the 
134.2 	commencement of payment of the disability benefit, the optional annuity must begin to 
134.3 	accrue on the same date as the disability benefit covering only the disabilitantdisability 
134.4 	benefit recipient would have accrued.
134.5 	(b) If an election of an optional annuity is not made before the commencement of the 
134.6 	disability benefit, the disabilitantdisability benefit recipient may elect an optional annuity:
134.7 	(1) within 90 days before normal retirement age;
134.8 	(2) upon the filing of an application to convert to an early retirement annuity, if 
134.9 	electing to convert to an early retirement annuity before the normal retirement age; or
134.10 	(3) within 90 days before the expiration of the 60-month period for which a disability 
134.11 	benefit is paid, if the disability benefit is payable because the disabled member did not 
134.12 	have at least 20 years of allowable service at normal retirement age.; or
134.13 	(4) upon being determined that the disability benefit recipient continues to be disabled 
134.14 	under subdivision 1, but is no longer totally and permanently disabled under subdivision 1a.
134.15 	(c) If a disabled member who has named a joint and survivor optional annuity 
134.16 	beneficiary dies before the disability benefit ceases and is recalculated under subdivision 
134.17 	5a, the beneficiary eligible to receive the joint and survivor annuity may elect to have 
134.18 	the annuity converted at the times designated in paragraph (b), clause (1), (2), or (3), 
134.19 	whichever allows for the earliest payment of a higher joint and survivor annuity option 
134.20 	resulting from recalculation under subdivision 5a, paragraph (e).
134.21 	(d) A disabled member may name a person other than the spouse as beneficiary 
134.22 	of a joint and survivor annuity only if the spouse of the disabled member permanently 
134.23 	waives surviving spouse coverage on the disability application form prescribed by the 
134.24 	executive director.
134.25 	(e) If the spouse of the member permanently waives survivor coverage, the 
134.26 	dependent child or children, if any, continue to be eligible for dependent child benefits 
134.27 	under section 353.657, subdivision 3, and the designated optional annuity beneficiary 
134.28 	may draw the monthly benefit.
134.29 	(f) Any optional annuity under this subdivision, plus dependent child benefits, if 
134.30 	applicable, are subject to the maximum and minimum family benefit amounts specified in 
134.31 	section 353.657, subdivision 3a.

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

134.33 	Sec. 21. Minnesota Statutes 2014, section 353.656, subdivision 2, is amended to read:
134.34 		Subd. 2.Benefits paid under workers' compensation law. (a) IfWhen the amount 
134.35 	determined under paragraph (b) exceeds the equivalent salary determined under paragraph 
135.1 	(c), the disability benefit amount must be reduced to that amount which, when added to 
135.2 	the workers' compensation benefits, equals the equivalent salary.
135.3 	(b) When a member becomes disabled and receivesreceiving a disability benefit as 
135.4 	specified in this section and is also entitled to receive lump sum or periodic benefits under 
135.5 	workers' compensation laws, the single life annuity actuarial equivalent disability benefit 
135.6 	amount and the workers' compensation amount must be added. The computation must 
135.7 	exclude any attorney fees paid by the disabilitantdisability benefit recipient as authorized 
135.8 	under applicable workers' compensation laws. The computation must also exclude 
135.9 	permanent partial disability payments provided under section 176.101, subdivision 2a, 
135.10 	and retraining payments under section 176.102, subdivision 11, if the permanent partial 
135.11 	disability or retraining payments are reported to the executive director in a manner 
135.12 	specified by the executive director.
135.13 	(b)(c) The equivalent salary is the amount determined under clause (1) or (2), 
135.14 	whichever is greater:
135.15 	(1) the salary the disabled member received as of the date of the disability; or
135.16 	(2) the salary currently payable for the same employment position or substantially 
135.17 	similar positions in the applicable government subdivision.
135.18 	(c) If the amount determined under paragraph (a) exceeds the equivalent salary 
135.19 	determined under paragraph (b), the disability benefit amount must be reduced to that 
135.20 	amount which, when added to the workers' compensation benefits, equals the equivalent 
135.21 	salary.

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

135.23 	Sec. 22. Minnesota Statutes 2014, section 353.656, subdivision 4, is amended to read:
135.24 		Subd. 4.Limitation on disability benefit payments. (a) No member is entitled to 
135.25 	receive a disability benefit payment when there remains to the member's credit unused 
135.26 	annual leave, sick leave, or any other employer-provided salary continuation plan, or 
135.27 	under any other circumstances when, during the period of disability, there has been no 
135.28 	impairment of the person's salary as a police officer, a firefighter, or a paramedic as defined 
135.29 	in section 353.64, subdivision 10, whichever applies.
135.30 	(b) If a disabled member resumes a gainful occupation with earnings that, when added 
135.31 	to the normalsingle life disability benefit, and workers' compensation benefit if applicable, 
135.32 	exceed the disabilitantdisability benefit recipient's reemployment earnings limit, the 
135.33 	amount of the disability benefit must be reduced during the months of employment and 
135.34 	receipt of workers' compensation benefits, if applicable, as provided in this paragraph. 
135.35 	The disabilitantdisability benefit recipient's reemployment earnings limit is the greater of:
136.1 	(1) the monthly salary earned at the date of disability; or
136.2 	(2) 125 percent of the base monthly salary currently paid by the employing 
136.3 	governmental subdivision for similar positions.
136.4 	(c) The disability benefit must be reduced by one dollar for each three dollars by 
136.5 	which the total amount of the current monthly disability benefit, any monthly workers' 
136.6 	compensation benefits if applicable, and actual monthly earnings exceed the greater 
136.7 	disabilitantdisability benefit recipient's reemployment earnings limit. In no event may 
136.8 	the monthly disability benefit as adjusted under this subdivision exceed the disability 
136.9 	benefit originally allowed.

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

136.11 	Sec. 23. Minnesota Statutes 2014, section 353.656, subdivision 5a, is amended to read:
136.12 		Subd. 5a.Cessation of disability benefit. (a) The association shall cease the 
136.13 	payment of any disability benefit the first of the month following the reinstatement of a 
136.14 	member to full time or less than full-time service in a position covered by the police 
136.15 	and fire fund.
136.16 	(b) A disability benefit paid to a disabled member of the police and fire plan, that 
136.17 	was granted under laws in effect after June 30, 2007, terminates at the end of the month in 
136.18 	which the member:
136.19 	(1) reaches normal retirement age;
136.20 	(2) if the disability benefit is payable for a 60-month period as determined under 
136.21 	subdivisions 1 and 3, as applicable, the first of the month following the expiration of 
136.22 	the 60-month period; or
136.23 	(3) if the disabled member so chooses, the end of the month in which the member 
136.24 	has elected to convert to an early retirement annuity under section 353.651, subdivision 4.
136.25 	(c) If the police and fire plan member continues to be disabled when the disability 
136.26 	benefit terminates under this subdivision, the member is deemed to be retired. The 
136.27 	individual is entitled to receive a normal retirement annuity or an early retirement annuity 
136.28 	under section 353.651, whichever is applicable, as further specified in paragraph (d) or 
136.29 	(e). If the individual did not previously elect an optional annuity under subdivision 1a 
136.30 	1b, paragraph (a), the individual may elect an optional annuity under subdivision 1a 
136.31 	1b, paragraph (b).
136.32 	(d) A member of the police and fire plan who is receiving a disability benefit under 
136.33 	this section may, upon application, elect to receive an early retirement annuity under 
136.34 	section 353.651, subdivision 4, at any time after attaining age 50, but must convert to a 
136.35 	retirement annuity no later than the end of the month in which the disabled member attains 
137.1 	normal retirement age. An early retirement annuity elected under this subdivision must be 
137.2 	calculated on the disabled member's accrued years of service and average salary as defined 
137.3 	in section 353.01, subdivision 17a, and when elected, the member is deemed to be retired.
137.4 	(e) When an individual's disability benefit terminates under paragraph (b), clause (1) 
137.5 	or (2), and is recalculated as a retirement annuity under this section, the annuity must be 
137.6 	based on clause (1) or clause (2), whichever provides the greater amount:
137.7 	(1) the benefit amount at the time of reclassification, including all prior adjustments 
137.8 	provided under Minnesota Statutes 2008, section 11A.18, through January 1, 2009, and 
137.9 	thereafter as provided in section 356.415; or
137.10 	(2) a benefit amount computed on the member's actual years of accrued allowable 
137.11 	service credit and the law in effect at the time the disability benefit first accrued, plus any 
137.12 	increases that would have applied since that date under Minnesota Statutes 2008, section 
137.13 	11A.18, through January 1, 2009, and thereafter as provided in section 356.415.

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

137.15 	Sec. 24. Minnesota Statutes 2014, section 353D.03, subdivision 3, is amended to read:
137.16 		Subd. 3.Ambulance service, rescue squad personnel contribution. (a) A public 
137.17 	ambulance service or privately operated ambulance service that receives an operating 
137.18 	subsidy from a governmental entity that elects to participate in the plan shall fund benefits 
137.19 	for its qualified personnel who individually elect to participate.
137.20 	(b) Personnel who are paid for their services may elect to make member contributions 
137.21 	in an amount not to exceed the service's contribution on their behalf.
137.22 	(c) Ambulance service contributions on behalf of salaried employees must be a 
137.23 	fixed percentage of salary.
137.24 	(d) An ambulance service making contributions for volunteer or largely 
137.25 	uncompensated personnel, or a municipality or county making contributions on behalf 
137.26 	of rescue squad members who are volunteers or largely uncompensated personnel, may 
137.27 	assign a unit value for each call or each period of alert duty for the purpose of calculating 
137.28 	ambulance service or rescue squad service contributions, as applicable.

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

137.30 	Sec. 25. Minnesota Statutes 2014, section 353E.06, subdivision 5, is amended to read:
137.31 		Subd. 5.Disability benefit termination. (a) The disability benefit paid to a disabled 
137.32 	local government correctional employee terminates at the end of the month in which the 
138.1 	employee reaches age 65 55, or the first of the month after  the expiration of the 60-month 
138.2 	period from the effective date of the disability benefit, whichever is later.
138.3 	(b) If the disabled local government correctional employee is still disabled when the 
138.4 	employee reacheshas been collecting the disability benefit for 60 months or has reached 
138.5 	age 65 55, whichever is later, the employee is deemed to be a retired employee and, if the 
138.6 	employee had elected an optional annuity under subdivision 3, must receive an annuity in 
138.7 	accordance with the terms of the optional annuity previously elected.
138.8 	(c) If the employee had not elected an optional annuity under subdivision 3, the 
138.9 	employee may elect either to receive a normalsingle life retirement annuity computed 
138.10 	in the manner provided in section 353E.04, subdivision 3, or to receive an optional 
138.11 	annuity as provided in section 353.30, subdivision 3, based on the same length of service 
138.12 	as used in the calculation of the disability benefit. Election of an optional annuity must 
138.13 	be made within 90 days before attaining the age of 65 years, or reaching the five-year 
138.14 	anniversary of the effective date of the disability benefit, whichever is later termination of 
138.15 	the disability benefit under paragraph (a).
138.16 	(d) When an individual's disability benefit terminates under this subdivision and 
138.17 	is recalculated as a retirement annuity, the annuity must include all prior adjustments 
138.18 	provided under Minnesota Statutes 2008, section 11A.18, through January 1, 2009, and 
138.19 	thereafter as provided in section 356.415.

138.20 	EFFECTIVE DATE. Paragraphs (a) to (c) are effective for disability benefits that 
138.21 	accrue after June 30, 2015. Paragraph (d) is effective July 1, 2015.

138.22 	Sec. 26. Minnesota Statutes 2014, section 353E.06, subdivision 6, is amended to read:
138.23 		Subd. 6.Resumption of employment. If a disabled employee resumes a gainful 
138.24 	occupation from which earnings are less than the monthly salary received at the date 
138.25 	of disability or the monthly salary currently paid for similar positions, or should the 
138.26 	employee be entitled to receive workers' compensation benefits, the disability benefit 
138.27 	must be continued in an amount that, when added to such earnings during the months of 
138.28 	employment, and workers' compensation benefits, if applicable, does not exceed the 
138.29 	monthly salary received at the date of disability or the monthly salary currently payable 
138.30 	for the same employment position or an employment position substantially similar to the 
138.31 	one the person held as of the date of the disability, whichever is greater.

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

139.1 	Sec. 27. Minnesota Statutes 2014, section 353F.01, is amended to read:
139.2 	353F.01 PURPOSE AND INTENT.
139.3 	The purpose of this chapter is to ensure, to the extent possible, that persons 
139.4 	employed at public medical facilities and other public employing units who are privatized 
139.5 	and consequently are excluded from retirement coverage by the Public Employees 
139.6 	Retirement Association will be entitled to receive future retirement benefits under the 
139.7 	general employees retirement plan of the Public Employees Retirement Association 
139.8 	commensurate with the prior contributions made by them or made on their behalf upon the 
139.9 	privatization of the medical facility or other public employing unit.

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

139.11 	Sec. 28. Minnesota Statutes 2014, section 353F.02, subdivision 3, is amended to read:
139.12 		Subd. 3.Effective date of privatization. "Effective date of privatization" means 
139.13 	the date that the operation of a medical facility or other public employing unit is assumed 
139.14 	by another employer or the date that a medical facility or other public employing unit 
139.15 	is purchased by another employer and active membership in the Public Employees 
139.16 	Retirement Association consequently terminates.

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

139.18 	Sec. 29. Minnesota Statutes 2014, section 353F.02, subdivision 5a, is amended to read:
139.19 		Subd. 5a.Privatized former public employer. "Privatized former public 
139.20 	employer" means a medical facility or other employing unitthat was formerly included in 
139.21 	the definition of governmental subdivision under section 353.01, subdivision 6, that is 
139.22 	privatized and whose employees are certified for participation under this chapter.

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

139.24 	Sec. 30. Minnesota Statutes 2014, section 353F.04, subdivision 2, is amended to read:
139.25 		Subd. 2.Exceptions. The increased augmentation rates specified in subdivision 1 
139.26 	do not apply to a privatized former public employee:
139.27 	(1) beginning the first of the month in which the privatized former public employee 
139.28 	becomes covered again by a retirement plan enumerated in section 356.30, subdivision 3, 
139.29 	if the employee continues to be covered and accrues at least six months of credited service 
139.30 	in any single plan enumerated in section 356.30, subdivision 3, except clause (6);
140.1 	(2) beginning the first of the month in which the privatized former public employee 
140.2 	becomes covered again by the general employees retirement plan of the Public Employees 
140.3 	Retirement Association;
140.4 	(2)(3) beginning the first of the month after a privatized former public employee 
140.5 	terminates service with the successor entity; or
140.6 	(3)(4) if the person begins receipt of a retirement annuity while employed by the 
140.7 	employer which assumed operations of or purchased the privatized former public employer.

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

140.9 	Sec. 31. Minnesota Statutes 2014, section 353F.051, subdivision 1, is amended to read:
140.10 		Subdivision 1.Eligibility. A privatized former public employee who is totally and 
140.11 	permanently disabled under Minnesota Statutes 1998, section 353.01, subdivision 19, 
140.12 	and who had a medically documented preexisting condition of the disability before the 
140.13 	termination of coverage, may apply for a disability benefit.

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

140.15 	Sec. 32. Minnesota Statutes 2014, section 353F.051, subdivision 2, is amended to read:
140.16 		Subd. 2.Calculation of benefits. A person qualifying under subdivision 1 is 
140.17 	entitled to receive a disability benefit calculated under Minnesota Statutes 1998, section 
140.18 	353.33, subdivision 3. The disability benefit must be augmented under Minnesota Statutes 
140.19 	1998, section 353.71, subdivision 2, from the date of termination to the date the disability 
140.20 	benefit begins to accrue.

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

140.22 	Sec. 33. Minnesota Statutes 2014, section 353F.051, subdivision 3, is amended to read:
140.23 		Subd. 3.Applicability of general law. Except as otherwise provided, Minnesota 
140.24 	Statutes 1998, section 353.33, applies to a person who qualifies for disability under 
140.25 	subdivision 1.

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

140.27 	Sec. 34. Minnesota Statutes 2014, section 353G.08, subdivision 1, is amended to read:
140.28 		Subdivision 1.Annual funding requirements. (a) Annually, the executive director 
140.29 	shall determine the funding requirements of each account in the voluntary statewide 
140.30 	lump-sum volunteer firefighter retirement plan on or before August 1. The funding 
141.1 	requirements as directed under this section, must be determined using a mathematical 
141.2 	procedure developed and certified as accurate by an approved actuary retained by the 
141.3 	Public Employees Retirement Association and based on present value factors using a six 
141.4 	percent interest rate, without any decrement assumptions. The funding requirements 
141.5 	must be certified to the entity or entities associated with the fire department whose active 
141.6 	firefighters are covered by the retirement plan.
141.7 	(b) The overall funding balance of each account for the current calendar year must 
141.8 	be determined in the following manner:
141.9 	(1) The total accrued liability for all active and deferred members of the account as 
141.10 	of December 31 of the current year must be calculated based on the good time service 
141.11 	credit of active and deferred members as of that date.
141.12 	(2) The total present assets of the account projected to December 31 of the current 
141.13 	year, including receipts by and disbursements from the account anticipated to occur on or 
141.14 	before December 31, must be calculated. To the extent possible, the market value of assets 
141.15 	must be utilized in making this calculation.
141.16 	(3) The amount of the total present assets calculated under clause (2) must be 
141.17 	subtracted from the amount of the total accrued liability calculated under clause (1). If the 
141.18 	amount of total present assets exceeds the amount of the total accrued liability, then the 
141.19 	account is considered to have a surplus over full funding. If the amount of the total present 
141.20 	assets is less than the amount of the total accrued liability, then the account is considered 
141.21 	to have a deficit from full funding. If the amount of total present assets is equal to the 
141.22 	amount of the total accrued liability, then the special fund is considered to be fully funded.
141.23 	(c) The financial requirements of each account for the following calendar year must 
141.24 	be determined in the following manner:
141.25 	(1) The total accrued liability for all active and deferred members of the account 
141.26 	as of December 31 of the calendar year next following the current calendar year must be 
141.27 	calculated based on the good time service used in the calculation under paragraph (b), 
141.28 	clause (1), increased by one year.
141.29 	(2) The increase in the total accrued liability of the account for the following calendar 
141.30 	year over the total accrued liability of the account for the current year must be calculated.
141.31 	(3) The amount of anticipated future administrative expenses of the account must be 
141.32 	calculated by multiplying the per person dollar amount of the administrative expenses for 
141.33 	the most recent prior calendar year by the factor of 1.035 number of active and deferred 
141.34 	firefighters reported to PERA on the most recent good time service credit certification 
141.35 	form for each account.
142.1 	(4) If the account is fully funded, the financial requirement of the account for the 
142.2 	following calendar year is the total of the amounts calculated under clauses (2) and (3).
142.3 	(5) If the account has a deficit from full funding, the financial requirement of the 
142.4 	account for the following calendar year is the total of the amounts calculated under clauses 
142.5 	(2) and (3) plus an amount equal to one-tenth of the amount of the deficit from full 
142.6 	funding of the account.
142.7 	(6) If the account has a surplus over full funding, the financial requirement of 
142.8 	the account for the following calendar year is the financial requirement of the account 
142.9 	calculated as though the account was fully funded under clause (4) and, if the account has 
142.10 	also had a surplus over full funding during the prior two years, additionally reduced by an 
142.11 	amount equal to one-tenth of the amount of the surplus over full funding of the account.
142.12 	(d) The required contribution of the entity or entities associated with the fire 
142.13 	department whose active firefighters are covered by the retirement plan is the annual 
142.14 	financial requirements of the account of the retirement plan under paragraph (c) reduced by 
142.15 	the amount of any fire state aid payable under sections 69.011 to 69.051or supplemental 
142.16 	state aid payable under section 423A.022 reasonably anticipated to be received by the 
142.17 	retirement plan attributable to the entity or entities during the following calendar year, and 
142.18 	an amount of interest on the assets projected to be received during the following calendar 
142.19 	year calculated at the rate of six percent per annum. The required contribution must be 
142.20 	allocated between the entities if more than one entity is involved. A reasonable amount 
142.21 	of anticipated fire state aid is an amount that does not exceed the fire state aid actually 
142.22 	received in the prior year multiplied by the factor 1.035.
142.23 	(e) The required contribution calculated in paragraph (d) must be paid to the 
142.24 	retirement plan on or before December 31 of the year for which it was calculated. If 
142.25 	the contribution is not received by the retirement plan by December 31, it is payable 
142.26 	with interest at an annual compound rate of six percent from the date due until the date 
142.27 	payment is received by the retirement plan. If the entity does not pay the full amount of 
142.28 	the required contribution, the executive director shall collect the unpaid amount under 
142.29 	section 353.28, subdivision 6.

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

142.31 	Sec. 35. Minnesota Statutes 2014, section 354.445, is amended to read:
142.32 	354.445 NO ANNUITY REDUCTION.
142.33 	(a) The annuity reduction provisions of section 354.44, subdivision 5, do not apply 
142.34 	to a person who:
143.1 	(1) retires from the Minnesota State Colleges and Universities system with at least 
143.2 	ten years of combined service credit in a system under the jurisdiction of the Board of 
143.3 	Trustees of the Minnesota State Colleges and Universities;
143.4 	(2) was employed on a full-time basis immediately preceding retirement as a faculty 
143.5 	member or as an unclassified administrator in that system;
143.6 	(3) was not a recipient of an early retirement incentive under section 136F.481;
143.7 	(4) begins drawing an annuity from the Teachers Retirement Association; and
143.8 	(5) returns to work on not less than a one-third time basis and not more than a 
143.9 	two-thirds time basis in the system from which the person retired under an agreement in 
143.10 	which the person may not earn a salary of more than $62,000 in a calendarfiscal year 
143.11 	through employment after retirement in the system from which the person retired.
143.12 	(b) Initial participation, the amount of time worked, and the duration of participation 
143.13 	under this section must be mutually agreed upon by the president of the institution where 
143.14 	the person returns to work and the employee. The president may require up to one-year 
143.15 	notice of intent to participate in the program as a condition of participation under this 
143.16 	section. The president shall determine the time of year the employee shall work. The 
143.17 	employer or the president may not require a person to waive any rights under a collective 
143.18 	bargaining agreement as a condition of participation under this section.
143.19 	(c) Notwithstanding any law to the contrary, a person eligible under paragraphs (a) 
143.20 	and (b) may not, based on employment to which the waiver in this section applies, earn 
143.21 	further service credit in a Minnesota public defined benefit plan and is not eligible to 
143.22 	participate in a Minnesota public defined contribution plan, other than a volunteer fire plan 
143.23 	governed by chapter 424A. No employer or employee contribution to any of these plans 
143.24 	may be made on behalf of such a person.
143.25 	(d) For a person eligible under paragraphs (a) and (b) who earns more than $62,000 
143.26 	in a calendarfiscal year through employment after retirement due to employment by the 
143.27 	Minnesota State Colleges and Universities system, the annuity reduction provisions of 
143.28 	section 354.44, subdivision 5, apply only to income over $62,000.
143.29 	(e) A person who returns to work under this section is a member of the appropriate 
143.30 	bargaining unit and is covered by the appropriate collective bargaining contract. Except 
143.31 	as provided in this section, the person's coverage is subject to any part of the contract 
143.32 	limiting rights of part-time employees.

143.33 	EFFECTIVE DATE. (a) This section is effective retroactively from January 1, 2015.
143.34 	(b) For purposes of the January 1, 2015, to June 30, 2015, period, the $62,000 
143.35 	exempt income limit must be prorated.

144.1 	Sec. 36. Minnesota Statutes 2014, section 354.72, subdivision 2, is amended to read:
144.2 		Subd. 2.Purchase procedure. (a) A teacher may purchase credit for allowable and 
144.3 	formula service in the plan for a period specified in subdivision 1 if the teacher makes a 
144.4 	payment as specified in paragraph (b), (c), or (d), whichever applies. The employing unit, 
144.5 	at its option, may pay the employer portion of the amount on behalf of its employees.
144.6 	(b) If payment is received by the executive director by June 30 of the fiscal year 
144.7 	of the strike period or by December 31 of the fiscal year following an authorized leave 
144.8 	included under section 354.093, 354.095, or 354.096, payment must equal the total 
144.9 	employee and employer contribution rates, including amortization contribution rates if 
144.10 	applicable, multiplied by the member's average monthly salary rate on the date the leave 
144.11 	or strike period commenced, or for an extended leave under section 354.094, on the salary 
144.12 	received during the year immediately preceding the initial year of the leave, multiplied 
144.13 	by the months and portions of a month of the leave or strike period for which the teacher 
144.14 	seeks allowable service credit. This paragraph also applies to an extended leave under 
144.15 	section 354.094, except that payment must be received by June 30 of the year of the leave, 
144.16 	and the salary used in the computation is the salary received during the year immediately 
144.17 	preceding the initial year of the leave.
144.18 	(c) If payment is made after June 30 and before the following June 30 for a strike 
144.19 	period, or for leavesafter December 31 of the fiscal year following a leave of absence 
144.20 	under section 354.093, 354.095, or 354.096, or for an extended leave of absence under 
144.21 	section 354.094,and before July 1, the payment must include the amount determined in 
144.22 	paragraph (b) plus compound interest at a monthly rate of 0.71 percent from June 30 for 
144.23 	a strike period, or from December 31 for a leave under section 354.093, 354.095, or 
144.24 	354.096, until the last day of the month in which payment is received. If payment is made 
144.25 	on or after July 1 and before the following July 1 for an extended leave of absence under 
144.26 	section 354.094, the payment must include the amount determined in paragraph (b) plus 
144.27 	compound interest at a monthly rate of 0.71 percent from June 30 until the last day of 
144.28 	the month in which payment is received.
144.29 	(d) If payment is received by the executive director after the applicable last permitted 
144.30 	date under paragraph (c), the payment amount is the amount determined under section 
144.31 	356.551. Notwithstanding payment deadlines specified in section 356.551, payment under 
144.32 	this section may be made anytime before the effective date of retirement.

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

145.1 	Sec. 37. Minnesota Statutes 2014, section 355.07, is amended to read:
145.2 	355.07 DECLARATION OF POLICY.
145.3 	(a) In order to extend to employees of the state, its political subdivisions, and its 
145.4 	other governmental employers, and to the dependents and survivors of the employees of 
145.5 	those employing units, the basic protection accorded to others by the old age, survivors, 
145.6 	and disability insurance system embodied in the Social Security Act, it is hereby declared 
145.7 	to be the policy of the legislature, subject to the limitations of this chapter, that these steps 
145.8 	are taken to provide protection to employees of the state and its political subdivisions on 
145.9 	as broad a basis as may be authorized by the legislature and is permitted under the Social 
145.10 	Security Act.
145.11 	(b) It is also the policy of the legislature that the protection afforded employees in 
145.12 	positions covered by a retirement system on the date an agreement under this chapter is 
145.13 	made applicable to service performed in those positions, or receiving periodic benefits 
145.14 	under the retirement system at that time, will not be impaired as a result of making the 
145.15 	agreement so applicable or as a result of legislative enactment in anticipation thereof when 
145.16 	combined with the benefits accorded the employee by the Social Security Act.
145.17 	(c) To this end, the agreement referred to in section 355.02 must not be made 
145.18 	applicable to any service performed in any position covered by a retirement system unless 
145.19 	a referendum is first held by secret ballot in which a majority of "eligible employees," as 
145.20 	defined in section 218(d) (3) of the Social Security Act, vote in favor thereof, or unless 
145.21 	a retirement system is divided in two divisions or parts, one of which is composed of 
145.22 	positions of members of the system who desire coverage and one of which is composed of 
145.23 	positions of members of the system who do not desire coverage under section 218(d) (3) 
145.24 	of the Social Security Act, in accordance with subsections (6) and (7) thereof. The cost of 
145.25 	the referendum must be borne by the affected governmental subdivision or subdivisions, 
145.26 	which are required to elect a voting method.
145.27 	(d) If a retirement system is divided as described in paragraph (c), any member of 
145.28 	the division of members that did not desire coverage may be transferred to the division of 
145.29 	members who did desire coverage as provided in section 218(d)(6)(f) of the Social Security 
145.30 	Act so long as the individual files a written request for such a transfer with the director.
145.31 	(d)(e) Nothing in any provision of this chapter authorizes the extension of the 
145.32 	insurance system established by this chapter, to service in any police officer's or firefighter's 
145.33 	position or in any position covered by a retirement system applicable exclusively to 
145.34 	positions in one or more law enforcement or firefighting units, agencies or departments as 
145.35 	covered by a retirement system in section 356.30, subdivision 3, clauses (4) and (7).

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

146.2 	Sec. 38. Minnesota Statutes 2014, section 356.32, subdivision 1, is amended to read:
146.3 		Subdivision 1.Proportionate retirement annuity. (a) Notwithstanding any 
146.4 	provision to the contrary of the laws governing any of the retirement funds enumerated 
146.5 	in subdivision 2, any person who is an active member of any applicable fund, who has 
146.6 	credit for at least one year but less than ten years of allowable service in one or more of 
146.7 	the covered plans, and who terminates active service under a mandatory retirement law or 
146.8 	policy or at age 65 or older, or at the normal retirement age if this age isbut not less than 
146.9 	age 65, for any reason is entitled upon making written application on the form prescribed 
146.10 	by the chief administrative officer of the plan to a proportionate retirement annuity from 
146.11 	each covered plan in which the person has at least six months of allowable service credit.
146.12 	(b) The proportionate annuity must be calculated under the applicable laws 
146.13 	governing annuities based upon allowable service credit at the time of retirement and the 
146.14 	person's average salary for the highest five successive years of allowable service or the 
146.15 	average salary for the entire period of allowable service if less than five years.
146.16 	(c) Nothing in this section prevents the imposition of the appropriate early retirement 
146.17 	reduction of an annuity which commences before the normal retirement age.

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

146.19 	Sec. 39. Minnesota Statutes 2014, section 356.415, subdivision 1a, is amended to read:
146.20 		Subd. 1a.Annual postretirement adjustments; Minnesota State Retirement 
146.21 	System plans other than State Patrol retirement plan. (a) Retirement annuity, disability 
146.22 	benefit, or survivor benefit recipients of the legislators retirement plans plan, including 
146.23 	constitutional officers as specified in chapter 3A, the general state employees retirement 
146.24 	plan, the correctional state employees retirement plan, and the unclassified state employees 
146.25 	retirement program, and the judges retirement plan are entitled to a postretirement 
146.26 	adjustment annually on January 1, as follows:
146.27 	(1) a postretirement increase of two percent must be applied each year, effective 
146.28 	on January 1, to the monthly annuity or benefit of each annuitant or benefit recipient 
146.29 	who has been receiving an annuity or a benefit for at least 18 full months before the 
146.30 	January 1 increase; and
146.31 	(2) for each annuitant or benefit recipient who has been receiving an annuity or 
146.32 	a benefit for at least six full months, an annual postretirement increase of 1/12 of two 
146.33 	percent for each month that the person has been receiving an annuity or benefit must be 
147.1 	applied, effective January 1, following the calendar year in which the person has been 
147.2 	retired for at least six months, but has been retired for less than 18 months.
147.3 	(b) The increases provided by this subdivision commence on January 1, 2011. 
147.4 	Increases under this subdivision for the general state employees retirement plan, the 
147.5 	correctional state employees retirement plan, or the judges retirement plan terminate on 
147.6 	December 31 of the calendar year in which two prior consecutive actuarial valuations 
147.7 	prepared by the approved actuary under sections 356.214 and 356.215 and the standards 
147.8 	for actuarial work promulgated by the Legislative Commission on Pensions and 
147.9 	Retirement indicatesindicate that the market value of assets of the retirement plan 
147.10 	equals or exceeds 90 percent of the actuarial accrued liability of the retirement plan and 
147.11 	increases under subdivision 1 recommence after that date. Increases under this subdivision 
147.12 	for the legislators retirement plan or the elected stateestablished under chapter 3A, 
147.13 	including constitutional officers retirement planspecified in that chapter, terminate on 
147.14 	December 31 of the calendar year in which thetwo prior consecutive actuarial valuation 
147.15 	valuations prepared by the approved actuary under sections 356.214 and 356.215 and the 
147.16 	standards for actuarial work promulgated by the Legislative Commission on Pensions 
147.17 	and Retirement indicatesindicate that the market value of assets of the general state 
147.18 	employees retirement plan equals or exceeds 90 percent of the actuarial accrued liability 
147.19 	of the retirement plan and increases under subdivision 1 recommence after that date.
147.20 	(c) An increase in annuity or benefit payments under this subdivision must be made 
147.21 	automatically unless written notice is filed by the annuitant or benefit recipient with the 
147.22 	executive director of the applicable covered retirement plan requesting that the increase 
147.23 	not be made.

147.24 	EFFECTIVE DATE. This section is effective retroactively from July 1, 2014.

147.25 	Sec. 40. Minnesota Statutes 2014, section 356.635, subdivision 9, is amended to read:
147.26 		Subd. 9.Military service. Contributions, benefits, including death and disability 
147.27 	benefits under section 401(a)(37) of the federal Internal Revenue Code, and service credit 
147.28 	with respect to qualified military service must be provided according to section 414(u) 
147.29 	of the federal Internal Revenue Code. For deaths occurring on or after January 1, 2007, 
147.30 	while a member is performing qualified military service as defined in United States Code, 
147.31 	title 38, chapter 43, to the extent required by section 401(a)(37) of the Internal Revenue 
147.32 	Code, survivors of a member in the system are entitled to any additional benefits that the 
147.33 	system would have provided if the member had resumed employment and then died, 
147.34 	including but not limited to accelerated vesting or survivor benefits that are contingent 
148.1 	on the member's death while employed.  In any event, a deceased member's period of 
148.2 	qualified military service must be counted for vesting purposes.

148.3 	EFFECTIVE DATE. This section is effective retroactively from January 1, 2007.

148.4 	Sec. 41. Minnesota Statutes 2014, section 356.635, is amended by adding a subdivision 
148.5 	to read:
148.6 		Subd. 10.Benefit limitations. For purposes of applying the limits of section 415(b) 
148.7 	of the Internal Revenue Code, a retirement benefit that is payable in any form other than a 
148.8 	single life annuity and that is subject to section 417(e)(3) of the Internal Revenue Code 
148.9 	must be adjusted to an actuarially equivalent single life annuity that equals, if the annuity 
148.10 	starting date is in a plan year beginning after 2005, the annual amount of the single life 
148.11 	annuity commencing at the same annuity starting date that has the same actuarial present 
148.12 	value as the participant's form of benefit, using whichever of the following produces the 
148.13 	greatest annual amount:
148.14 	(1) the interest rate and the mortality table or other tabular factor specified in the 
148.15 	plan for adjusting benefits in the same form;
148.16 	(2) a 5.5 percent interest rate assumption and the applicable mortality table; or
148.17 	(3) the applicable interest rate under section 417(e)(3) of the Internal Revenue Code 
148.18 	and the applicable mortality table, divided by 1.05.

148.19 	EFFECTIVE DATE. This section is effective retroactively from January 1, 2005.

148.20 	Sec. 42.  REPEALER.
 148.21 	Minnesota Statutes 2014, sections 353.025; 353.83; 353.84; 353.85; and 353D.03, 
148.22 	subdivision 4, are repealed.

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

148.24 	ARTICLE 13
148.25 	OBSOLETE DATE REVISIONS AND VARIOUS CLARIFICATIONS

148.26 	Section 1. Minnesota Statutes 2014, section 352.01, subdivision 11, is amended to read:
148.27 		Subd. 11.Allowable service. (a) "Allowable service" means:
148.28 	(1) service by an employee for which on or before July 1, 1961, the employee chose 
148.29 	to obtain credit for service by making payments to the fund under Minnesota Statutes 
148.30 	1961, section 352.24;
149.1 	(2)(1) service by an employee after July 1, 1957, for any calendar month in which 
149.2 	the employee is paid salary from which deductions are made, deposited, and credited in the 
149.3 	fund, including deductions made, deposited, and credited as provided in section 352.041;
149.4 	(3)(2) service by an employee for any calendar month for which payments in lieu of 
149.5 	salary deductions are made, deposited, and credited in the fund, as provided in section 
149.6 	352.27;
149.7 	(4)(3) the period of absence from their duties by employees who are temporarily 
149.8 	disabled because of injuries incurred in the performance of duties and for which disability 
149.9 	the state is liable under the workers' compensation law until the date authorized by the 
149.10 	director for the commencement of payments of a total and permanent disability benefit 
149.11 	from the retirement fund;
149.12 	(5)(4) service covered by a refund repaid as provided in section 352.23 or 352D.05, 
149.13 	subdivision 4, except service rendered as an employee of the adjutant general for which 
149.14 	the person has credit with the federal civil service retirement system;
149.15 	(6)(5) service rendered before July 1, 1978, by an employee of the Transit Operating 
149.16 	Division of the Metropolitan Transit Commission or by an employee on an authorized 
149.17 	leave of absence from the Transit Operating Division of the Metropolitan Transit 
149.18 	Commission who is employed by the labor organization which is the exclusive bargaining 
149.19 	agent representing employees of the Transit Operating Division, which was credited by 
149.20 	the Metropolitan Transit Commission-Transit Operating Division employees retirement 
149.21 	fund or any of its predecessor plans or funds as past, intermediate, future, continuous, or 
149.22 	allowable service as defined in the Metropolitan Transit Commission-Transit Operating 
149.23 	Division employees retirement fund plan document in effect on December 31, 1977;
149.24 	(7)(6) service rendered after July 1, 1983, by an employee who is employed on 
149.25 	a part-time basis for less than 50 percent of full time, for which the employee is paid 
149.26 	salary from which deductions are made, deposited, and credited in the fund, including 
149.27 	deductions made, deposited, and credited as provided in section 352.041 or for which 
149.28 	payments in lieu of salary deductions are made, deposited, and credited in the fund 
149.29 	as provided in section 352.27shallmust be credited on a fractional basis either by pay 
149.30 	period, monthly, or annually based on the relationship that the percentage of salary earned 
149.31 	bears to a full-time salary, with any salary paid for the fractional service credited on the 
149.32 	basis of the rate of salary applicable for a full-time pay period, month, or a full-time 
149.33 	year. For periods of part-time service that is duplicated service credit, section 356.30, 
149.34 	subdivision 1, paragraphs (g) and (h), govern; and
150.1 	(8)(7) any period of authorized leave of absence without pay that does not exceed 
150.2 	one year and for which the employee obtained credit by payment to the fund under section 
150.3 	352.017.
150.4 	(9) [Renumbered clause (8)]
150.5 	(10) MS 2002 [Expired]
150.6 	(11) [Expired, 2002 c 392 art 2 s 4]
150.7 	(b) For purposes of paragraph (a), clauses (2)(1) and (3) (2), any salary that is paid 
150.8 	for a fractional part of any calendar month, including the month of separation from state 
150.9 	service, is deemed to be the compensation for the entire calendar month.
150.10 	(c) Allowable service determined and credited on a fractional basis must be used in 
150.11 	calculating the amount of benefits payable, but service as determined on a fractional basis 
150.12 	must not be used in determining the length of service required for eligibility for benefits.

150.13 	Sec. 2. Minnesota Statutes 2014, section 352.01, subdivision 15, is amended to read:
150.14 		Subd. 15.Approved actuary. "Approved actuary" means anyan actuary who is 
150.15 	either a fellow of the society of actuaries or who has at least 15 years of service to major 
150.16 	public employee funds, or any firm retaining an approved actuary on its staff meets the 
150.17 	definition in section 356.215, subdivision 1, paragraph (c).

150.18 	Sec. 3. Minnesota Statutes 2014, section 352.021, subdivision 1, is amended to read:
150.19 		Subdivision 1.Establishment. (a) There is established the general state employees 
150.20 	retirement plan of the Minnesota State Retirement System for state employees.
150.21 	(b) The general state employees retirement plan is a continuation of the State 
150.22 	Employees Retirement Association.
150.23 	(c) Any person who was a member of the State Employees Retirement Association 
150.24 	on June 30, 1967, is covered by the general state employees retirement plan and is entitled 
150.25 	to all benefits provided by the plan upon fulfilling the age, service, contribution, and 
150.26 	other requirements of this chapter.

150.27 	Sec. 4. Minnesota Statutes 2014, section 352.021, subdivision 3, is amended to read:
150.28 		Subd. 3.Optional exemptions. (a) Any person who is appointed by the governor or 
150.29 	lieutenant governor may request exemption from coverage bywho is not already covered 
150.30 	by the general state employees retirement plan under this chapter if the appointee is not 
150.31 	covered by the plan on the date of appointment and who is not an employee listed in 
150.32 	section 352D.02, subdivision 1, paragraph (c), may request, in writing, an exemption 
150.33 	from coverage by the plan.
151.1 	(b) To qualify for this exemption, a writtenthe request must be made within 90 days 
151.2 	from the date of entering upon the duties of the position to which the person is appointed.
151.3 	(c) After making the request, a person requesting the exemption is not entitled to 
151.4 	coverage by the general state employees retirement plan while employed in the position 
151.5 	that entitled that person to an exemption from coverage.

151.6 	Sec. 5. Minnesota Statutes 2014, section 352.021, subdivision 4, is amended to read:
151.7 		Subd. 4.Reentering service after refund. When a former employee who has 
151.8 	withdrawn accumulated contributions reenters employment in a position entitled to 
151.9 	coverage under the general state employees retirement plan, the employee must be covered 
151.10 	by the plan on the same basis as a new employee and is not entitled to allowable service 
151.11 	credit for any former service. The annuity rights forfeited when taking a refund can only 
151.12 	be restored as provided in this chapter section 352.23.

151.13 	Sec. 6. Minnesota Statutes 2014, section 352.029, subdivision 2, is amended to read:
151.14 		Subd. 2.Election. A person described in subdivision 1 shall beis covered by 
151.15 	the system if written election to be covered is delivered to the executive director before 
151.16 	December 31, 1992, within 90 days of being employed by the labor organization, or 
151.17 	within 90 days of starting the first leave of absence with an exclusive bargaining agent, 
151.18 	whichever is later.

151.19 	Sec. 7. Minnesota Statutes 2014, section 352.22, subdivision 8, is amended to read:
151.20 		Subd. 8.Refund specifically limited. (a) If a former employee covered by the 
151.21 	system does not apply for refund within five years after the last deduction was taken 
151.22 	from salary for the retirement fund, and does not have enough service to qualify for a 
151.23 	deferred annuity, accumulated member and employer contributions must be credited to 
151.24 	and become a part of the retirement fund.
151.25 	(b) If the former employee returns to state service and becomes a state employee 
151.26 	covered by the system, the amount credited to the retirement fund, if more than $25, must 
151.27 	be restored to the individual account. If the amount credited to the fund is over $25 and 
151.28 	the former employee applies for refund or an annuity under section 352.72 or 356.30, 
151.29 	the amount must be restored to the former employee's individual account and a refund 
151.30 	made or an annuity paid, whichever applies.

151.31 	Sec. 8. Minnesota Statutes 2014, section 352.22, subdivision 10, is amended to read:
152.1 		Subd. 10.Other refunds. Former employees covered by the system are entitled 
152.2 	to apply for refunds if they are or become members of the State Patrol retirement fund, 
152.3 	the state Teachers Retirement Association, or employees of the University of Minnesota 
152.4 	excluded from coverage under the system by action of the Board of Regents; or employees 
152.5 	of the adjutant general who under federal law effectually elect membership in a federal 
152.6 	retirement system; or officers or employees of the senate or house of representatives, 
152.7 	excluded from coverage under section 352.01, subdivision 2b, clause (7) (6). The refunds 
152.8 	must include accumulated contributions plus interest as provided in subdivision 2.

152.9 	Sec. 9. Minnesota Statutes 2014, section 352.23, is amended to read:
152.10 	352.23 TERMINATION OF RIGHTS; REPAYMENT OF REFUND.
152.11 	(a) When any employee accepts a refund as provided in section 352.22, all existing 
152.12 	allowable service credits and all rights and benefits to which the employee was entitled 
152.13 	before accepting the refund terminate. They must
152.14 	(b) Terminated service credits and rights must not again be restored until the former 
152.15 	employee acquires at least six months of allowable service credit after taking the last 
152.16 	refund. In that event, the employee may repay all refunds previously taken from the 
152.17 	retirement fund.
152.18 	(c) Repayment of refunds entitles the employee only to credit for service covered 
152.19 	by (1) salary deductions; (2) payments previously made in lieu of salary deductions as 
152.20 	permitted under law in effect when the payment in lieu of deductions was made; (3) 
152.21 	payments made to obtain credit for service as permitted by laws in effect when payment 
152.22 	was made; and (4) allowable service oncepreviously credited while receiving temporary 
152.23 	workers' compensation as provided in section 352.01, subdivision 11, clause (5) (4).
152.24 	(d) Payments under this section for repayment of refunds are to be paid with interest 
152.25 	at an annual rate of 8.5 percent compounded annually from the date the refund was taken 
152.26 	until the date the refund is repaid. They may be paid in a lump sum or by payroll deduction 
152.27 	in the manner provided in section 352.04. Payment may be made in a lump sum up to 
152.28 	six months after termination from service.

152.29 	Sec. 10. Minnesota Statutes 2014, section 352.75, subdivision 2, is amended to read:
152.30 		Subd. 2.New employees. All persons first employed by the former Metropolitan 
152.31 	Transit CommissionCouncil as employees of the Transit Operating Division on or after 
152.32 	July 1, 1978, are members of the general state employees retirement plan of the Minnesota 
152.33 	State Retirement System and are considered state employees for purposes of this chapter 
152.34 	unless specifically excluded under section 352.01, subdivision 2b.

153.1 	Sec. 11. Minnesota Statutes 2014, section 352.87, subdivision 8, is amended to read:
153.2 		Subd. 8.Election of coverage. To be covered by this section, an employee of the 
153.3 	Department of Public Safety described in subdivision 1 who is employed in a position 
153.4 	described in that subdivision on or after July 1, 1999, must file a notice with the executive 
153.5 	director of the Minnesota State Retirement System on a form prescribed by the executive 
153.6 	director stating whether or not the employee elects to be covered by this section. Notice 
153.7 	must be filed by September 1, 1999, or within 90 days of employment, whichever is later. 
153.8 	Elections are irrevocable during any period of covered employment. A failure to file a 
153.9 	timely notice shall beis deemed a waiver of coverage by this section.

153.10 	Sec. 12. Minnesota Statutes 2014, section 352B.011, subdivision 3, is amended to read:
153.11 		Subd. 3.Allowable service. (a) "Allowable service" means:
153.12 	(1) service in a month during which a member is paid a salary from which a member 
153.13 	contribution is deducted, deposited, and credited in the State Patrol retirement fund;
153.14 	(2) for members defined in subdivision 10, clause (1), service in any month for 
153.15 	which payments have been made to the State Patrol retirement fund under law;
153.16 	(3) for members defined in subdivision 10, clauses (2) and (3), service for which 
153.17 	payments have been made to the State Patrol retirement fund under law, service for which 
153.18 	payments were made to the State Police officers retirement fund under law after June 
153.19 	30, 1961, and all prior service which was credited to a member for service on or before 
153.20 	June 30, 1961;
153.21 	(4)(2) any period of authorized leave of absence without pay that does not exceed 
153.22 	one year and for which the employee obtains credit by payment to the fund under section 
153.23 	352B.013; and
153.24 	(5)(3) eligible periods of uniformed service for which the member obtained service 
153.25 	credit by making the payment required under section 352B.086 to the fund.
153.26 	(b) Allowable service also includes any period of absence from duty by a member 
153.27 	who, by reason of injury incurred in the performance of duty, is temporarily disabled and 
153.28 	for which disability the state is liable under the workers' compensation law, until the date 
153.29 	authorized by the executive director for commencement of payment of a disability benefit 
153.30 	or until the date of a return to employment if in conformity with section 352B.085.

153.31 	Sec. 13. Minnesota Statutes 2014, section 352B.07, is amended to read:
153.32 	352B.07 ACTIONS BY OR AGAINST THE GOVERNING BOARD OF THE 
153.33 	RETIREMENT PLAN.
154.1 	With respect to the State Patrol retirement plan, the board of the Minnesota State 
154.2 	Retirement System may sue or be sued in the name of the board of directors of the state 
154.3 	retirement system. In all actions brought by or against it, the board shall be represented by 
154.4 	the attorney general. The attorney general shall also be the legal adviser for the board. 
154.5 	Venue of all actions is in the Ramsey County District Court.

154.6 	Sec. 14. Minnesota Statutes 2014, section 352B.25, is amended to read:
154.7 	352B.25 CONTINUING APPROPRIATION; PAYMENT OF PENSION 
154.8 	FUNDS BY INDIVIDUALS.
154.9 	The State Patrol retirement fund and the participation in the Minnesota 
154.10 	postretirement investment fund must be disbursed only for the purposes provided in this 
154.11 	chapter. The expenses of the system and any benefits or annuities provided in this chapter, 
154.12 	other than benefits payable from the Minnesota postretirement investment fund, must be 
154.13 	paid from the State Patrol retirement fund. The amounts necessary to make the payments 
154.14 	from the State Patrol retirement fund and the participation in the Minnesota postretirement 
154.15 	investment fund are annually appropriated from those funds for those purposes.

154.16 	Sec. 15. Minnesota Statutes 2014, section 353.01, subdivision 2b, is amended to read:
154.17 		Subd. 2b.Excluded employees. (a) The following public employees are not eligible 
154.18 	to participate as members of the association with retirement coverage by the general 
154.19 	employees retirement plan, the local government correctional employees retirement plan 
154.20 	under chapter 353E, or the public employees police and fire retirement plan:
154.21 	(1) persons whose annual salary from one governmental subdivision never exceeds 
154.22 	an amount, stipulated in writing in advance, of $5,100 if the person is not a school district 
154.23 	employee or $3,800 if the person is a school year employee. If annual compensation from 
154.24 	one governmental subdivision to an employee exceeds the stipulated amount in a calendar 
154.25 	year or a school year, whichever applies, after being stipulated in advance not to exceed 
154.26 	the applicable amount, the stipulation is no longer valid and contributions must be made 
154.27 	on behalf of the employee under section 353.27, subdivision 12, from the first month in 
154.28 	which the employee received salary exceeding $425 in a month;
154.29 	(2) public officers who are elected to a governing body, city mayors, or persons who 
154.30 	are appointed to fill a vacancy in an elective office of a governing body, whose term of office 
154.31 	commences on or after July 1, 2002, for the service to be rendered in that elective position;
154.32 	(3) election judges and persons employed solely to administer elections;
154.33 	(4) patient and inmate personnel who perform services for a governmental 
154.34 	subdivision;
155.1 	(5) except as otherwise specified in subdivision 12a, employees who are employed 
155.2 	solely in a temporary position as defined under subdivision 12a, and employees who 
155.3 	resign from a nontemporary position and accept a temporary position within 30 days of 
155.4 	that resignation in the same governmental subdivision;
155.5 	(6) employees who are employed by reason of work emergency caused by fire, 
155.6 	flood, storm, or similar disaster, but if the person becomes a probationary or provisional 
155.7 	employee within the same pay period, other than on a temporary basis, the person is a 
155.8 	"public employee" retroactively to the beginning of the pay period;
155.9 	(7) employees who by virtue of their employment in one governmental subdivision 
155.10 	are required by law to be a member of and to contribute to any of the plans or funds 
155.11 	administered by the Minnesota State Retirement System, the Teachers Retirement 
155.12 	Association, or the St. Paul Teachers Retirement Fund Association, but this exclusion 
155.13 	must not be construed to prevent a person from being a member of and contributing to 
155.14 	the Public Employees Retirement Association and also belonging to and contributing to 
155.15 	another public pension plan or fund for other service occurring during the same period 
155.16 	of time, and a person who meets the definition of "public employee" in subdivision 2 by 
155.17 	virtue of other service occurring during the same period of time becomes a member of the 
155.18 	association unless contributions are made to another public retirement plan on the salary 
155.19 	based on the other service or to the Teachers Retirement Association by a teacher as 
155.20 	defined in section 354.05, subdivision 2;
155.21 	(8) persons who are members of a religious order and are excluded from coverage 
155.22 	under the federal Old Age, Survivors, Disability, and Health Insurance Program for the 
155.23 	performance of service as specified in United States Code, title 42, section 410(a)(8)(A), 
155.24 	as amended, if no irrevocable election of coverage has been made under section 3121(r) of 
155.25 	the Internal Revenue Code of 1954, as amended;
155.26 	(9) persons who are:
155.27 	(i) employed by a governmental subdivision who have not reached the age of 23 
155.28 	and who are enrolled on a full-time basis to attend or are attending classes on a full-time 
155.29 	basis at an accredited school, college, or university in an undergraduate, graduate, or 
155.30 	professional-technical program, or at a public or charter high school;
155.31 	(ii) employed as resident physicians, medical interns, pharmacist residents, or 
155.32 	pharmacist interns and are serving in a degree or residency program in a public hospital 
155.33 	or in a public clinic; or
155.34 	(iii) students who are serving for a period not to exceed five years in an internship 
155.35 	or a residency program that is sponsored by a governmental subdivision, including an 
155.36 	accredited educational institution;
156.1 	(10) persons who hold a part-time adult supplementary technical college license who 
156.2 	render part-time teaching service in a technical college;
156.3 	(11) except for employees of Hennepin County or employees of Hennepin 
156.4 	Healthcare System, Inc., foreign citizens who are employed by a governmental subdivision 
156.5 	under a work permit or under an H-1b visa initially issued or extended for a combined 
156.6 	period of less than three years of employment but upon extension of the employment of 
156.7 	the visa beyond the three-year period, the foreign citizen must be reported for membership 
156.8 	beginning on the first of the month following the extension if the monthly earnings 
156.9 	threshold as provided under subdivision 2a, paragraph (a), is met;
156.10 	(12) public hospital employees who elected not to participate as members of the 
156.11 	association before 1972 and who did not elect to participate from July 1, 1988, to October 
156.12 	1, 1988;
156.13 	(13) except as provided in section 353.86, volunteer ambulance service personnel, as 
156.14 	defined in subdivision 35, but persons who serve as volunteer ambulance service personnel 
156.15 	may still qualify as public employees under subdivision 2 and may be members of the 
156.16 	Public Employees Retirement Association and participants in the general employees 
156.17 	retirement plan or the public employees police and fire plan, whichever applies, on the 
156.18 	basis of compensation received from public employment service other than service as 
156.19 	volunteer ambulance service personnel;
156.20 	(14) except as provided in section 353.87, volunteer firefighters, as defined in 
156.21 	subdivision 36, engaging in activities undertaken as part of volunteer firefighter duties, 
156.22 	but a person who is a volunteer firefighter may still qualify as a public employee under 
156.23 	subdivision 2 and may be a member of the Public Employees Retirement Association and 
156.24 	a participant in the general employees retirement plan or the public employees police 
156.25 	and fire plan, whichever applies, on the basis of compensation received from public 
156.26 	employment activities other than those as a volunteer firefighter;
156.27 	(15) pipefitters and associated trades personnel employed by Independent School 
156.28 	District No. 625, St. Paul, with coverage under a collective bargaining agreement by the 
156.29 	pipefitters local 455 pension plan who were either first employed after May 1, 1997, or, 
156.30 	if first employed before May 2, 1997, elected to be excluded under Laws 1997, chapter 
156.31 	241, article 2, section 12;
156.32 	(16) electrical workers, plumbers, carpenters, and associated trades personnel who 
156.33 	are employed by Independent School District No. 625, St. Paul, or the city of St. Paul, 
156.34 	who have retirement coverage under a collective bargaining agreement by the Electrical 
156.35 	Workers Local 110 pension plan, the United Association Plumbers Local 34 pension plan, 
156.36 	or the pension plan applicable to Carpenters Local 322 who were either first employed 
157.1 	after May 1, 2000, or, if first employed before May 2, 2000, elected to be excluded under 
157.2 	Laws 2000, chapter 461, article 7, section 5;
157.3 	(17) bricklayers, allied craftworkers, cement masons, glaziers, glassworkers, 
157.4 	painters, allied tradesworkers, and plasterers who are employed by the city of St. Paul 
157.5 	or Independent School District No. 625, St. Paul, with coverage under a collective 
157.6 	bargaining agreement by the Bricklayers and Allied Craftworkers Local 1 pension plan, 
157.7 	the Cement Masons Local 633 pension plan, the Glaziers and Glassworkers Local L-1324 
157.8 	pension plan, the Painters and Allied Trades Local 61 pension plan, or the Twin Cities 
157.9 	Plasterers Local 265 pension plan who were either first employed after May 1, 2001, or if 
157.10 	first employed before May 2, 2001, elected to be excluded under Laws 2001, First Special 
157.11 	Session chapter 10, article 10, section 6;
157.12 	(18) plumbers who are employed by the Metropolitan Airports Commission, with 
157.13 	coverage under a collective bargaining agreement by the Plumbers Local 34 pension plan, 
157.14 	who either were first employed after May 1, 2001, or if first employed before May 2, 
157.15 	2001, elected to be excluded under Laws 2001, First Special Session chapter 10, article 
157.16 	10, section 6;
157.17 	(19) employees who are hired after June 30, 2002, solely to fill seasonal positions 
157.18 	under subdivision 12b which are limited in duration by the employer to 185 consecutive 
157.19 	calendar days or less in each year of employment with the governmental subdivision;
157.20 	(20) persons who are provided supported employment or work-study positions by a 
157.21 	governmental subdivision and who participate in an employment or industries program 
157.22 	maintained for the benefit of these persons where the governmental subdivision limits the 
157.23 	position's duration to up to five years, including persons participating in a federal or state 
157.24 	subsidized on-the-job training, work experience, senior citizen, youth, or unemployment 
157.25 	relief program where the training or work experience is not provided as a part of, or 
157.26 	for, future permanent public employment;
157.27 	(21) independent contractors and the employees of independent contractors;
157.28 	(22) reemployed annuitants of the association during the course of that reemployment;
157.29 	(23) persons appointed to serve on a board or commission of a governmental 
157.30 	subdivision or an instrumentality thereof; and
157.31 	(24) persons employed as full-time fixed-route bus drivers by the St. Cloud 
157.32 	Metropolitan Transit Commission who are members of the International Brotherhood 
157.33 	of Teamsters Local 638 and who are, by virtue of that employment, members of the 
157.34 	International Brotherhood of Teamsters Central States pension plan.
158.1 	(b) Any person performing the duties of a public officer in a position defined in 
158.2 	subdivision 2a, paragraph (a), clause (3), is not an independent contractor and is not an 
158.3 	employee of an independent contractor.

158.4 	Sec. 16. Minnesota Statutes 2014, section 353.01, subdivision 6, is amended to read:
158.5 		Subd. 6.Governmental subdivision. (a) "Governmental subdivision" means a 
158.6 	county, city, town, school district within this state, or a department, unit or instrumentality 
158.7 	of state or local government, or any public body established under state or local 
158.8 	authority that has a governmental purpose, is under public control, is responsible for the 
158.9 	employment and payment of the salaries of employees of the entity, and receives a major 
158.10 	portion of its revenues from taxation, fees, assessments or from other public sources.
158.11 	(b) Governmental subdivision also means the Public Employees Retirement 
158.12 	Association, the League of Minnesota Cities, the Association of Metropolitan 
158.13 	Municipalities, charter schools formed under section 124D.10, service cooperatives 
158.14 	exercising retirement plan participation under section 123A.21, subdivision 5, joint 
158.15 	powers boards organized under section 471.59, subdivision 11, paragraph (a), family 
158.16 	service collaboratives and children's mental health collaboratives organized under 
158.17 	section 471.59, subdivision 11, paragraph (b) or (c), provided that the entities creating 
158.18 	the collaboratives are governmental units that otherwise qualify for retirement plan 
158.19 	membership, public hospitals owned or operated by, or an integral part of, a governmental 
158.20 	subdivision or governmental subdivisions, the Association of Minnesota Counties, the 
158.21 	Minnesota Inter-county Association, the Minnesota Municipal Utilities Association, the 
158.22 	Metropolitan Airports Commission, the University of Minnesota with respect to police 
158.23 	officers covered by the public employees police and fire retirement plan, the Minneapolis 
158.24 	Employees Retirement Fund for employment initially commenced after June 30, 1979, the 
158.25 	Range Association of Municipalities and Schools, soil and water conservation districts, 
158.26 	economic development authorities created or operating under sections 469.090 to 469.108, 
158.27 	the Port Authority of the city of St. Paul, the Seaway Port Authority of Duluth, the Red 
158.28 	Wing Port Authority, the Spring Lake Park Fire Department, incorporated, the Lake 
158.29 	Johanna Volunteer Fire Department, incorporated, the Red Wing Environmental Learning 
158.30 	Center, the Dakota County Agricultural Society, and Hennepin Healthcare System, Inc.
158.31 	(c) Governmental subdivision does not mean any municipal housing and 
158.32 	redevelopment authority organized under the provisions of sections 469.001 to 469.047; 
158.33 	or any port authority organized under sections 469.048 to 469.089 other than the Port 
158.34 	Authority of the city of St. Paul or the Seaway Port Authority of Duluth and other than 
158.35 	the Red Wing Port Authority; or any hospital district organized or reorganized prior to 
159.1 	before July 1, 1975, under sections 447.31 to 447.37 or the successor of the district; or the 
159.2 	board of a family service collaborative or children's mental health collaborative organized 
159.3 	under sections 124D.23, 245.491 to 245.495, or 471.59, if that board is not controlled 
159.4 	by representatives of governmental units.
159.5 	(d) A nonprofit corporation governed by chapter 317A or organized under Internal 
159.6 	Revenue Code, section 501(c)(3), which is not covered by paragraph (a) or (b), is not a 
159.7 	governmental subdivision unless the entity has obtained a written advisory opinion from 
159.8 	the United States Department of Labor or a ruling from the Internal Revenue Service 
159.9 	declaring the entity to be an instrumentality of the state so as to provide that any future 
159.10 	contributions by the entity on behalf of its employees are contributions to a governmental 
159.11 	plan within the meaning of Internal Revenue Code, section 414(d).
159.12 	(e) A public body created by state or local authority may request membership on 
159.13 	behalf of its employees by providing sufficient evidence that it meets the requirements in 
159.14 	paragraph (a).
159.15 	(f) An entity determined to be a governmental subdivision is subject to the reporting 
159.16 	requirements of this chapter upon receipt of a written notice of eligibility from the 
159.17 	association.

159.18 	Sec. 17. Minnesota Statutes 2014, section 353.01, subdivision 16, is amended to read:
159.19 		Subd. 16.Allowable service; limits and computation. (a) "Allowable service" 
159.20 	means:
159.21 	(1) service during years of actual membership in the course of which employee 
159.22 	deductions were withheld from salary and contributions were made at the applicable rates 
159.23 	under section 353.27, 353.65, or 353E.03;
159.24 	(2) periods of service covered by payments in lieu of salary deductions under 
159.25 	sections 353.27, subdivision 12, and 353.35;
159.26 	(3) service in years during which the public employee was not a member but for 
159.27 	which the member later elected, while a member, to obtain credit by making payments to 
159.28 	the fund as permitted by any law then in effect;
159.29 	(4) a period of authorized leave of absence with pay from which deductions for 
159.30 	employee contributions are made, deposited, and credited to the fund;
159.31 	(5) a period of authorized personal, parental, or medical leave of absence without 
159.32 	pay, including a leave of absence covered under the federal Family Medical Leave Act, 
159.33 	that does not exceed one year, and for which a member obtained service credit for each 
159.34 	month in the leave period by payment under section 353.0161 to the fund made in place of 
159.35 	salary deductions. An employee must return to public service and render a minimum of 
160.1 	three months of allowable service in order to be eligible to make payment under section 
160.2 	353.0161 for a subsequent authorized leave of absence without pay. Upon payment, the 
160.3 	employee must be granted allowable service credit for the purchased period;
160.4 	(6) a periodic, repetitive leave that is offered to all employees of a governmental 
160.5 	subdivision. The leave program may not exceed 208 hours per annual normal work cycle 
160.6 	as certified to the association by the employer. A participating member obtains service 
160.7 	credit by making employee contributions in an amount or amounts based on the member's 
160.8 	average salary, excluding overtime pay, that would have been paid if the leave had not been 
160.9 	taken. The employer shall pay the employer and additional employer contributions on 
160.10 	behalf of the participating member. The employee and the employer are responsible to pay 
160.11 	interest on their respective shares at the rate of 8.5 percent a year, compounded annually, 
160.12 	from the end of the normal cycle until full payment is made. An employer shall also make 
160.13 	the employer and additional employer contributions, plus 8.5 percent interest, compounded 
160.14 	annually, on behalf of an employee who makes employee contributions but terminates 
160.15 	public service. The employee contributions must be made within one year after the end of 
160.16 	the annual normal working cycle or within 30 days after termination of public service, 
160.17 	whichever is sooner. The executive director shall prescribe the manner and forms to be 
160.18 	used by a governmental subdivision in administering a periodic, repetitive leave. Upon 
160.19 	payment, the member must be granted allowable service credit for the purchased period;
160.20 	(7) an authorized temporary or seasonal layoff under subdivision 12, limited to three 
160.21 	months allowable service per authorized temporary or seasonal layoff in one calendar year. 
160.22 	An employee who has received the maximum service credit allowed for an authorized 
160.23 	temporary or seasonal layoff must return to public service and must obtain a minimum of 
160.24 	three months of allowable service subsequent to the layoff in order to receive allowable 
160.25 	service for a subsequent authorized temporary or seasonal layoff;
160.26 	(8) a period during which a member is absent from employment by a governmental 
160.27 	subdivision by reason of service in the uniformed services, as defined in United States 
160.28 	Code, title 38, section 4303(13), if the member returns to public service with the same 
160.29 	governmental subdivision upon discharge from service in the uniformed service within the 
160.30 	time frames required under United States Code, title 38, section 4312(e), provided that 
160.31 	the member did not separate from uniformed service with a dishonorable or bad conduct 
160.32 	discharge or under other than honorable conditions. The service must be credited if the 
160.33 	member pays into the fund equivalent employee contributions based upon the contribution 
160.34 	rate or rates in effect at the time that the uniformed service was performed multiplied by 
160.35 	the full and fractional years being purchased and applied to the annual salary rate. The 
160.36 	annual salary rate is the average annual salary during the purchase period that the member 
161.1 	would have received if the member had continued to be employed in covered employment 
161.2 	rather than to provide uniformed service, or, if the determination of that rate is not 
161.3 	reasonably certain, the annual salary rate is the member's average salary rate during the 
161.4 	12-month period of covered employment rendered immediately preceding the period of the 
161.5 	uniformed service. Payment of the member equivalent contributions must be made during 
161.6 	a period that begins with the date on which the individual returns to public employment 
161.7 	and that is three times the length of the military leave period, or within five years of the 
161.8 	date of discharge from the military service, whichever is less. If the determined payment 
161.9 	period is less than one year, the contributions required under this clause to receive service 
161.10 	credit may be made within one year of the discharge date. Payment may not be accepted 
161.11 	following 30 days after termination of public service under subdivision 11a. If the member 
161.12 	equivalent contributions provided for in this clause are not paid in full, the member's 
161.13 	allowable service credit must be prorated by multiplying the full and fractional number 
161.14 	of years of uniformed service eligible for purchase by the ratio obtained by dividing the 
161.15 	total member contributions received by the total member contributions otherwise required 
161.16 	under this clause. The equivalent employer contribution, and, if applicable, the equivalent 
161.17 	additional employer contribution must be paid by the governmental subdivision employing 
161.18 	the member if the member makes the equivalent employee contributions. The employer 
161.19 	payments must be made from funds available to the employing unit, using the employer 
161.20 	and additional employer contribution rate or rates in effect at the time that the uniformed 
161.21 	service was performed, applied to the same annual salary rate or rates used to compute the 
161.22 	equivalent member contribution. The governmental subdivision involved may appropriate 
161.23 	money for those payments. The amount of service credit obtainable under this section may 
161.24 	not exceed five years unless a longer purchase period is required under United States Code, 
161.25 	title 38, section 4312. The employing unit shall pay interest on all equivalent member and 
161.26 	employer contribution amounts payable under this clause. Interest must be computed at a 
161.27 	rate of 8.5 percent compounded annually from the end of each fiscal year of the leave or the 
161.28 	break in service to the end of the month in which the payment is received. Upon payment, 
161.29 	the employee must be granted allowable service credit for the purchased period; or
161.30 	(9) a period specified under section 353.0162.
161.31 	(b) For calculating benefits under sections 353.30, 353.31, 353.32, and 353.33 for 
161.32 	state officers and employees displaced by the Community Corrections Act, chapter 401, 
161.33 	and transferred into county service under section 401.04, "allowable service" means the 
161.34 	combined years of allowable service as defined in paragraph (a), clauses (1) to (6), and 
161.35 	section 352.01, subdivision 11.
162.1 	(c)(b) No member may receive more than 12 months of allowable service credit in a 
162.2 	year either for vesting purposes or for benefit calculation purposes.
162.3 	(c) For an active member who was an active member of the former Minneapolis 
162.4 	Firefighters Relief Association on December 29, 2011, "allowable service" is the period 
162.5 	of service credited by the Minneapolis Firefighters Relief Association as reflected in 
162.6 	the transferred records of the association up to December 30, 2011, and the period 
162.7 	of service credited under paragraph (a), clause (1), after December 30, 2011. For an 
162.8 	active member who was an active member of the former Minneapolis Police Relief 
162.9 	Association on December 29, 2011, "allowable service" is the period of service credited 
162.10 	by the Minneapolis Police Relief Association as reflected in the transferred records of the 
162.11 	association up to December 30, 2011, and the period of service credited under paragraph 
162.12 	(a), clause (1), after December 30, 2011.
162.13 	(d) MS 2002 [Expired]

162.14 	Sec. 18. Minnesota Statutes 2014, section 353.01, subdivision 17, is amended to read:
162.15 		Subd. 17.Approved actuary. "Approved actuary" means anyan actuary who is a 
162.16 	fellow of the society of actuaries or who has at least 15 years of service to major public 
162.17 	employee funds or any firm retaining such an actuary on its staff meets the definition in 
162.18 	section 356.215, subdivision 1, paragraph (c).

162.19 	Sec. 19. Minnesota Statutes 2014, section 353.017, subdivision 2, is amended to read:
162.20 		Subd. 2.Election. A person described in subdivision 1 is covered by the association 
162.21 	if written election to be covered is delivered to the association within six months of 
162.22 	employment by the labor organization or within six months after July 1, 1993, whichever 
162.23 	is applicable.

162.24 	Sec. 20. Minnesota Statutes 2014, section 353.46, subdivision 2, is amended to read:
162.25 		Subd. 2.Rights of deferred annuitant. The entitlement of a deferred annuitant or 
162.26 	other former member of the general employees retirement plan of the Public Employees 
162.27 	Retirement Association, the Minneapolis Employees Retirement Fund division, the 
162.28 	public employees police and fire retirement plan, or the local government correctional 
162.29 	employees retirement plan to receive an annuity under the law in effect at the time the 
162.30 	person terminated public service is herein preserved. The provisions of section 353.71, 
162.31 	subdivision 2, as amended by Laws 1973, chapter 753, apply to a deferred annuitant or 
162.32 	other former member who first begins receiving an annuity after July 1, 1973.

163.1 	Sec. 21. Minnesota Statutes 2014, section 353.64, subdivision 7a, is amended to read:
163.2 		Subd. 7a.Pension coverage for certain metropolitan transit police officers. A 
163.3 	person who is employed as a police officer on or after the first day of the first payroll 
163.4 	period after July 1, 1993, by the Metropolitan Council and who is not eligible for coverage 
163.5 	under the agreement with the Secretary of the federal Department of Health and Human 
163.6 	Services making the provisions of the federal Old Age, Survivors, and Disability Insurance 
163.7 	Act because the person's position is excluded from application under United States Code, 
163.8 	sections 418(d)(5)(A) and 418(d)(8)(D), and under section 355.07, is a member of the 
163.9 	public employees police and fire fund and is considered to be a police officer within the 
163.10 	meaning of this section. The Metropolitan Council shall deduct the employee contribution 
163.11 	from the salary of each police officer as required by section 353.65, subdivision 2, shall 
163.12 	make the employer contribution for each police officer as required by section 353.65, 
163.13 	subdivision 3, and shall meet the employer recording and reporting requirements in 
163.14 	section 353.65, subdivision 4.

163.15 	Sec. 22. Minnesota Statutes 2014, section 353.64, subdivision 8, is amended to read:
163.16 		Subd. 8.Pension coverage for certain state military affairs department 
163.17 	firefighters. A person who is employed as a full-time firefighter on or after the first day 
163.18 	of the first payroll period after June 10, 1987, by the Department of Military Affairs 
163.19 	of the state of Minnesota and who is not eligible for coverage under the agreement 
163.20 	signed between the state and the secretary of the federal Department of Health and 
163.21 	Human Services making the provisions of the federal Old Age, Survivors, and Disability 
163.22 	Insurance Act applicable to state employees because the person's position is excluded from 
163.23 	application under United States Code, title 42, sections 418(d)(5)(A) and 418(d)(8)(D) and 
163.24 	section 355.07, is a member of the public employees police and fire fund and is considered 
163.25 	to be a firefighter within the meaning of this section. The state Department of Military 
163.26 	Affairs shall make the employee contribution deduction from the salary of each full-time 
163.27 	Military Affairs Department firefighter as required by section 353.65, subdivision 2, shall 
163.28 	make the employer contribution with respect to each firefighter as required by section 
163.29 	353.65, subdivision 3, and shall meet the employer recording and reporting requirements 
163.30 	in section 353.65, subdivision 4.

163.31 	Sec. 23. Minnesota Statutes 2014, section 353.64, subdivision 9, is amended to read:
163.32 		Subd. 9.Pension coverage for certain sheriffs' association employees. (a) 
163.33 	A former member of the association who is an employee of the Minnesota Sheriffs' 
163.34 	Association may elect to be a police and fire fund member with respect to service with 
164.1 	the sheriffs' association, if written election to be covered is delivered to the board within 
164.2 	60 days after July 1, 1989, or within 60 days afterthe commencement of employment, 
164.3 	whichever is later.
164.4 	(b) Employee and employer contributions for past service are the obligation of 
164.5 	the employee, except that the Minnesota sheriffs' association may pay the employer 
164.6 	contributions. The employer shall, in any event, deduct necessary future contributions 
164.7 	from the employee's salary and remit all contributions to the association as required by 
164.8 	this chapter.
164.9 	(c) Persons who become association members under this section shallare not be 
164.10 	eligible for election to the board of trustees.

164.11 	Sec. 24. Minnesota Statutes 2014, section 353.64, subdivision 10, is amended to read:
164.12 		Subd. 10.Pension coverage for Hennepin Healthcare System, Inc.; paramedics 
164.13 	and emergency medical technicians. An employee of Hennepin Healthcare System, Inc. 
164.14 	who is a member of the public employees police and fire retirement plan under sections 
164.15 	353.63 to 353.68 if the person is:
164.16 	(1) certified as a paramedic or emergency medical technician by the state under 
164.17 	section 144E.28, subdivision 4;
164.18 	(2) employed full time as a paramedic or emergency medical technician by Hennepin 
164.19 	County on or after the effective date specified in Laws 1994, chapter 499, section 2; and
164.20 	(3) not eligible after the effective date under Laws 1994, chapter 499, section 2, for 
164.21 	coverage under the agreement signed between the state and the secretary of the federal 
164.22 	Department of Health and Human Services making the provisions of the federal Old Age, 
164.23 	Survivors, and Disability Insurance Act applicable to paramedics and emergency medical 
164.24 	technicians because the person's position is excluded after that date from application under 
164.25 	United States Code, title 42, sections 418(d)(5)(A) and 418(d)(8)(D), and section 355.07;
164.26 	is a member of the public employees police and fire fund under sections 353.63 to 353.68.
164.27 	Hennepin Healthcare System, Inc. shall deduct the employee contribution from 
164.28 	the salary of each full-time paramedic and emergency medical technician it employs as 
164.29 	required by section 353.65, subdivision 2, shall make the employer contribution for each 
164.30 	full-time paramedic and emergency medical technician it employs as required by section 
164.31 	353.65, subdivision 3, and shall meet the employer recording and reporting requirements 
164.32 	in section 353.65, subdivision 4.

164.33 	Sec. 25. Minnesota Statutes 2014, section 353D.071, subdivision 2, is amended to read:
165.1 		Subd. 2.Required minimum distributions. (a) The provisions of this subdivision 
165.2 	shall apply for purposes of determining required minimum distributions for calendar years 
165.3 	beginning with the 2003 calendar year and willmust take precedence over any inconsistent 
165.4 	provisions of the plan. All distributions required under this section willmust be determined 
165.5 	and made in accordance with the treasury regulations under section 401(a)(9) of the 
165.6 	Internal Revenue Code, including regulations providing special rules for governmental 
165.7 	plans, as defined under section 414(d) of the Internal Revenue Code, that comply with a 
165.8 	reasonable good faith interpretation of the minimum distribution requirements.
165.9 	(b) The member's entire interest willmust be distributed to the member in a lump 
165.10 	sum no later than the member's required beginning date.
165.11 	(c) If the member dies before the required minimum distribution is made, the 
165.12 	member's entire interest willmust be distributed in a lump sum no later than as follows:
165.13 	(1) if the member's surviving spouse is the member's sole designated beneficiary, the 
165.14 	distribution must be made by December 31 of the calendar year immediately following the 
165.15 	calendar year in which the member died, or by December 31 of the calendar year in which 
165.16 	the member would have attained age 70 years, six months, whichever is later;
165.17 	(2) if the member's surviving spouse is not the member's sole beneficiary, or if there 
165.18 	is no designated beneficiary as of September 30 of the year following the year of the 
165.19 	member's death, the member's entire interest shallmust be distributed by December 31 
165.20 	of the calendar year containing the fifth anniversary of the member's death as directed 
165.21 	under section 353D.07, subdivision 5; or
165.22 	(3) if the member's surviving spouse is the member's sole designated beneficiary and 
165.23 	the surviving spouse dies after the member, but before the account balance is distributed 
165.24 	to the surviving spouse, paragraph (c), clause (2), shallmust apply as if the surviving 
165.25 	spouse were the member.
165.26 	(d) For purposes of paragraph (c), unless clause (3) applies, distributions are 
165.27 	considered to be made on the member's required beginning date. If paragraph (c), clause 
165.28 	(3), applies, distributions are considered to begin on the date distributions are required to 
165.29 	must be made to the surviving spouse under paragraph (c), clause (1).

165.30 	Sec. 26. Minnesota Statutes 2014, section 354.05, subdivision 10, is amended to read:
165.31 		Subd. 10.Approved actuary. "Approved actuary" means anyan actuary who 
165.32 	is either a fellow of the society of actuaries or who has at least 15 years of service to 
165.33 	major public employee funds or any firm retaining such an actuary on its staff meets the 
165.34 	definition in section 356.215, subdivision 1, paragraph (c).

166.1 	Sec. 27. Minnesota Statutes 2014, section 354.05, subdivision 13, is amended to read:
166.2 		Subd. 13.Allowable service. "Allowable service" means:
166.3 	(1) any service rendered by a teacher for which on or before July 1, 1957, the 
166.4 	teacher's account in the retirement fund was credited by reason of employee contributions 
166.5 	in the form of salary deductions, payments in lieu of salary deductions, or in any other 
166.6 	manner authorized by Minnesota Statutes 1953, sections 135.01 to 135.13, as amended by 
166.7 	Laws 1955, chapters 361, 549, 550, and 611;
166.8 	(2) any service rendered by a teacher for which on or before July 1, 1961, the teacher 
166.9 	elected to obtain credit for service by making payments to the fund under Minnesota 
166.10 	Statutes 1980, section 354.09 and section 354.51;
166.11 	(3)(1) any service rendered by a teacher after July 1, 1957, for any calendar month 
166.12 	when the member receives salary from which deductions are made, deposited and credited 
166.13 	in the fund;
166.14 	(4)(2) any service rendered by a person after July 1, 1957, for any calendar month 
166.15 	where payments in lieu of salary deductions are made, deposited and credited into the fund 
166.16 	as provided in Minnesota Statutes 1980, section 354.09, subdivision 4, and section 354.53;
166.17 	(5)(3) any service rendered by a teacher for which the teacher elected to obtain 
166.18 	credit for service by making payments to the fund under Minnesota Statutes 1980, 
166.19 	section 354.09, subdivisions 1 and 4, sections 354.50, 354.51, Minnesota Statutes 1957, 
166.20 	section 135.41, subdivision 4, Minnesota Statutes 1971, section 354.09, subdivision 2, or 
166.21 	Minnesota Statutes, 1973 Supplement, section 354.09, subdivision 3;
166.22 	(6)(4) both service during years of actual membership in the course of which 
166.23 	contributions were currently made and service in years during which the teacher was not a 
166.24 	member but for which the teacher later elected to obtain credit by making payments to the 
166.25 	fund as permitted by any law then in effect;
166.26 	(7)(5) any service rendered where contributions were made and no credit was 
166.27 	established because of the limitations contained in Minnesota Statutes 1957, section 
166.28 	135.09, subdivision 2, as determined by the ratio between the amounts of money credited 
166.29 	to the teacher's account in a fiscal year and the maximum retirement contribution allowable 
166.30 	for that year;
166.31 	(8) MS 2002 [Expired]
166.32 	(9)(6) a period of time during which a teacher was on strike without pay, not to exceed 
166.33 	a period of one year, if payment in lieu of salary deductions is made under section 354.72;
166.34 	(10)(7) a period of service before July 1, 2006, that was properly credited as 
166.35 	allowable service by the Minneapolis Teachers Retirement Fund Association, and that 
166.36 	was rendered by a teacher as an employee of Special School District No. 1, Minneapolis, 
167.1 	or by an employee of the Minneapolis Teachers Retirement Fund Association who was 
167.2 	a member of the Minneapolis Teachers Retirement Fund Association by virtue of that 
167.3 	employment, who has not begun receiving an annuity or other retirement benefit from 
167.4 	the former Minneapolis Teachers Retirement Fund Association calculated in whole or 
167.5 	in part on that service before July 1, 2006, and who has not taken a refund of member 
167.6 	contributions related to that service unless the refund is repaid under section 354.50, 
167.7 	subdivision 4. Service as an employee of Special School District No. 1, Minneapolis, on 
167.8 	or after July 1, 2006, is "allowable service" only as provided by this chapter; or
167.9 	(11)(8) a period of service before July 1, 2015, that was properly credited as 
167.10 	allowable service by the Duluth Teachers Retirement Fund Association, and that was 
167.11 	rendered by a teacher as an employee of Independent School District No. 709, Duluth, or 
167.12 	by an employee of the Duluth Teachers Retirement Fund Association who was a member 
167.13 	of the Duluth Teachers Retirement Fund Association by virtue of that employment, who 
167.14 	has not begun receiving an annuity or other retirement benefit from the former Duluth 
167.15 	Teachers Retirement Fund Association calculated in whole or in part on that service 
167.16 	before July 1, 2015, and who has not taken a refund of member contributions related to 
167.17 	that service unless the refund is repaid under section 354.50, subdivision 4. Service as an 
167.18 	employee of Independent School District No. 709, Duluth, on or after July 1, 2015, is 
167.19 	"allowable service" only as provided by this chapter.

167.20 	Sec. 28. Minnesota Statutes 2014, section 354.05, subdivision 25, is amended to read:
167.21 		Subd. 25.Formula service credit. "Formula service credit" means any allowable 
167.22 	service credit as defined in subdivision 13 except:
167.23 	(1) Any service rendered prior to July 1, 1951, for which payments were made 
167.24 	pursuant to subdivision 13 except as provided in section 354.09, subdivision 4, as 
167.25 	determined by multiplying the number of years of service established in the records of the 
167.26 	Teachers Retirement Association as of July 1, 1961 by the ratio obtained between the total 
167.27 	amount paid and the maximum amount payable for those years;
167.28 	(2) Any service rendered prior to July 1, 1957 for which payments were made 
167.29 	pursuant to section 354.09, subdivision 4, as determined by multiplying the number of 
167.30 	years of service established in the records of the teachers retirement association by the 
167.31 	ratio obtained between the total amount paid and the maximum amount payable for those 
167.32 	years; or
167.33 	(3)(1) any service rendered for which contributions were not made in full as 
167.34 	determined by the ratio between the amounts of money credited to the teacher's account in 
168.1 	a fiscal year and the retirement contribution payable for the fiscal year pursuant tounder 
168.2 	sections 354.092, 354.42, and 354.51; and
168.3 	(4)(2) no period of service shallmay be counted more than once for purposes 
168.4 	of this subdivision.

168.5 	Sec. 29. Minnesota Statutes 2014, section 354.07, subdivision 5, is amended to read:
168.6 		Subd. 5.Records; accounts; interest. (a) The board shall keep a record of the 
168.7 	receipts and disbursements of the fund and a separate account withfor each member of 
168.8 	the association. The board shall also keep separate accounts for annuity payments, for 
168.9 	employer contributions and all other necessary accounts and reserves.
168.10 	(b) It shall determine annually the annual interest earnings of the fund which shall 
168.11 	include realized capital gains and losses. Any amount in the capital reserve account on 
168.12 	July 1, 1973, shall be transferred to the employer contribution's account.
168.13 	(c) The annual interest earnings shallmust be apportioned and credited to the 
168.14 	separate members' accounts except those covered under the provisions of section 354.44, 
168.15 	subdivision 6. The rate to be used in this distribution, computed to the last full quarter 
168.16 	percent shall, must be determined by dividing the interest earnings by the total invested 
168.17 	assets of the fund. The excess of the annual interest earnings in the excess earnings reserve 
168.18 	which was not credited to the various accounts shallmust be credited to the gross interest 
168.19 	earnings for the next succeeding year.

168.20 	Sec. 30. Minnesota Statutes 2014, section 354.092, subdivision 4, is amended to read:
168.21 		Subd. 4.Service credit. A member may not receive more than three years of 
168.22 	allowable service credit in any ten consecutive years under this section unless the 
168.23 	allowable service credit was paid for by the member before July 1, 1962. Notwithstanding 
168.24 	the provisions of any agreements to the contrary, employee and employer contributions 
168.25 	may not be made to receive allowable service credit under this section if the member does 
168.26 	not retain the right to full reinstatement both during and at the end of the sabbatical leave.

168.27 	Sec. 31. Minnesota Statutes 2014, section 354.42, subdivision 1a, is amended to read:
168.28 		Subd. 1a.Teachers retirement fund. (a) Within the Teachers Retirement 
168.29 	Association and the state treasury is created a special retirement fund, which must include 
168.30 	all the assets of the Teachers Retirement Association and all revenue of the association. 
168.31 	The fund is the continuation of the fund established under Laws 1931, chapter 406, section 
168.32 	2, notwithstanding the repeal of Minnesota Statutes 1973, section 354.42, subdivision 1, 
168.33 	by Laws 1974, chapter 289, section 59.
169.1 	(b) The teachers retirement fund must be credited with all employee and employer 
169.2 	contributions, all investment revenue and gains, and all other income authorized by law.
169.3 	(c) From the teachers retirement fund is appropriated the payments of annuities 
169.4 	and benefits authorized by this chapter and the reasonable and necessary expenses of 
169.5 	administering the fund and the association.

169.6 	Sec. 32. Minnesota Statutes 2014, section 354.44, subdivision 8, is amended to read:
169.7 		Subd. 8.Annuity payment; provision of evidence of receipt. (a) An annuity or 
169.8 	benefit for a given month must be paid during the first week of that month.
169.9 	(b) Evidence of receipt of the check issued or acknowledgment of the amount 
169.10 	electronically transferred in payment of an annuity or benefit may be required from the 
169.11 	payee on a form prescribed by the executive director. The evidence of receipt form may 
169.12 	be required periodically at times specified by the board. In the eventIf the filing of an 
169.13 	evidence of receipt form is required and the form is not filed, future annuities or benefits 
169.14 	must be withheld until the form is submitted.

169.15 	Sec. 33. Minnesota Statutes 2014, section 354.44, subdivision 9, is amended to read:
169.16 		Subd. 9.Determining applicable law. An employeeA former teacher who returns 
169.17 	to covered service following a termination and who is not receiving a retirement annuity 
169.18 	under this section must have earned at least 85 days of credited service following the 
169.19 	return to covered service to be eligible for improved benefits resulting from any law 
169.20 	change enacted subsequent to that termination.

169.21 	Sec. 34. Minnesota Statutes 2014, section 354.45, subdivision 1a, is amended to read:
169.22 		Subd. 1a.Bounce-back annuity. (a) If a former member or disabilitant selects a 
169.23 	joint and survivor annuity option under subdivision 1, the former member or disabilitant 
169.24 	must receive a normal single life annuity if the designated optional annuity beneficiary 
169.25 	dies before the former member or disabilitant. Under this option, no reduction may be 
169.26 	made in the person's annuity to provide for restoration of the normal single life annuity in 
169.27 	the event of the death of the designated optional annuity beneficiary.
169.28 	(b) The restoration of the normal single life annuity under this subdivision will take 
169.29 	effect on July 1, 1989, or the first of the month following the date of death of the designated 
169.30 	optional annuity beneficiary, or on the first of the month following one year before the date 
169.31 	on which a certified copy of the death record of the designated optional annuity beneficiary 
169.32 	is received in the office of the Teachers Retirement Association, whichever date is later.
170.1 	(c) Except as stated in paragraph (b), this subdivision may not be interpreted as 
170.2 	authorizing retroactive benefit payments.

170.3 	Sec. 35. Minnesota Statutes 2014, section 354.48, subdivision 3, is amended to read:
170.4 		Subd. 3.Computation of benefits. (a) The amount of the disability benefit granted 
170.5 	to members covered under section 354.44, subdivision 2, paragraphs (b) and (c), is an 
170.6 	amount equal to double the annuity which could be purchased by the member's accumulated 
170.7 	deductions plus interest on the amount computed as though the teacher were at normal 
170.8 	retirement age at the time the benefit begins to accrue and in accordance with the law in 
170.9 	effect on the last day for which salary is received. Any member who applies for a disability 
170.10 	benefit after June 30, 1974, and who failed to make an election under Minnesota Statutes 
170.11 	1971, section 354.145, shall have the disability benefit computed under this paragraph, as 
170.12 	further specified in paragraphs (b) and (c), or paragraph (d), whichever is larger.
170.13 	(b) The benefit granted shall be determined by the following:
170.14 	(1) the amount of the accumulated deductions;
170.15 	(2) interest actually earned on these accumulated deductions to the date the benefit 
170.16 	begins to accrue;
170.17 	(3) interest for the years from the date the benefit begins to accrue to the date the 
170.18 	member attains normal retirement age at the rate of three percent;
170.19 	(4) annuity purchase rates based on an appropriate annuity table of mortality 
170.20 	established by the board as provided in section 354.07, subdivision 1, and using 
170.21 	the applicable postretirement interest rate assumption specified in section 356.215, 
170.22 	subdivision 8.
170.23 	(c) In addition, a supplementary monthly benefit of $25 to age 65 or the five-year 
170.24 	anniversary of the effective date of the disability benefit, whichever is later, must be 
170.25 	paid to basic members.
170.26 	(d)(a) The disability benefit granted to members covered under section 354.44, 
170.27 	subdivision 6, shallmust be computed in the same manner as the annuity provided in 
170.28 	section 354.44, subdivision 6. The disability benefit shall beis the formula annuity without 
170.29 	the reduction for each month the member is under normal retirement age when the benefit 
170.30 	begins to accrue as defined by the law in effect on the last day for which salary is paid.
170.31 	(e)(b) For the purposes of computing a retirement annuity when the member 
170.32 	becomes eligible, the amounts paid for disability benefits shallmust not be deducted from 
170.33 	the individual member's accumulated deductions. If the disability benefits provided in 
170.34 	this subdivision exceed the monthly average salary of the disabled member, the disability 
170.35 	benefits shallmust be reduced to an amount equal to the disabled member's average salary.

171.1 	Sec. 36. Minnesota Statutes 2014, section 354.51, subdivision 1, is amended to read:
171.2 		Subdivision 1.Eligibility to make payments. No member shall beis entitled to 
171.3 	make payments in lieu of salary deductions to the retirement board to receive allowable 
171.4 	service credit for any period of service prior torendered before that date for which 
171.5 	employee contributions were not deducted from the member's salary, except as provided 
171.6 	in subdivision 4 5, or section 354.50 or 354.53.

171.7 	Sec. 37. Minnesota Statutes 2014, section 354.51, subdivision 5, is amended to read:
171.8 		Subd. 5.Payment of shortages. (a) Except as provided in paragraph (b), in the 
171.9 	event that full required member contributions are not deducted from the salary of a 
171.10 	teacher, payment must be made as follows:
171.11 	(1) Payment of shortages in member deductions on salary earned after June 30, 
171.12 	1957, and before July 1, 1981, may be made any time before retirement. Payment must 
171.13 	include interest at an annual rate of 8.5 percent compounded annually from the end of the 
171.14 	fiscal year in which the shortage occurred to the end of the month in which payment is 
171.15 	made and the interest must be credited to the fund. If payment of a shortage in deductions 
171.16 	is not made, the formula service credit of the member must be prorated under section 
171.17 	354.05, subdivision 25, clause (3).
171.18 	(2) Payment of shortages in member deductions on salary earned after June 30, 1981, 
171.19 	are the sole obligation of the employing unit and are payable by the employing unit upon 
171.20 	notification by the executive director of the shortage with interest at an annual rate of 8.5 
171.21 	percent compounded annually from the end of the fiscal year in which the shortage occurred 
171.22 	to the end of the month in which payment is made and the interest must be credited to the 
171.23 	fund. Effective July 1, 1986, The employing unit shall also pay the employer contributions 
171.24 	as specified in section 354.42, subdivisions 3 and 5 for the shortages. If the shortage 
171.25 	payment is not paid by the employing unit within 60 days of notification, and if the 
171.26 	executive director does not use the recovery procedure in section 354.512, the executive 
171.27 	director shall certify the amount of the shortage to the applicable county auditor, who shall 
171.28 	spread a levy in the amount of the shortage payment over the taxable property of the 
171.29 	taxing district of the employing unit if the employing unit is supported by property taxes.
171.30 	(3) Payment may not be made for shortages in member deductions on salary earned 
171.31 	before July 1, 1957, for shortages in member deductions on salary paid or payable under 
171.32 	paragraph (b), or for shortages in member deductions for persons employed by the 
171.33 	Minnesota State Colleges and Universities system in a faculty position or in an eligible 
171.34 	unclassified administrative position and whose employment was less than 25 percent 
172.1 	of a full academic year, exclusive of the summer session, for the applicable institution 
172.2 	that exceeds the most recent 36 months.
172.3 	(b) For a person who is employed by the Minnesota State Colleges and Universities 
172.4 	system in a faculty position or in an eligible unclassified administrative position and 
172.5 	whose employment was less than 25 percent of a full academic year, exclusive of the 
172.6 	summer session, for the applicable institution, upon the person's election under section 
172.7 	354B.21 of retirement coverage under this chapter, the shortage in member deductions 
172.8 	on the salary for employment by the Minnesota State Colleges and Universities system 
172.9 	institution of less than 25 percent of a full academic year, exclusive of the summer session, 
172.10 	for the applicable institution for the most recent 36 months and the associated employer 
172.11 	contributions must be paid by the Minnesota State Colleges and Universities system 
172.12 	institution, plus annual compound interest at the rate of 8.5 percent from the end of the 
172.13 	fiscal year in which the shortage occurred to the end of the month in which the Teachers 
172.14 	Retirement Association coverage election is made. An individual electing coverage 
172.15 	under this paragraph shall repay the amount of the shortage in member deductions, plus 
172.16 	interest, through deduction from salary or compensation payments within the first year of 
172.17 	employment after the election under section 354B.21, subject to the limitations in section 
172.18 	16D.16. The Minnesota State Colleges and Universities system may use any means 
172.19 	available to recover amounts which were not recovered through deductions from salary or 
172.20 	compensation payments. No payment of the shortage in member deductions under this 
172.21 	paragraph may be made for a period longer than the most recent 36 months.

172.22 	Sec. 38. Minnesota Statutes 2014, section 354.52, subdivision 4c, is amended to read:
172.23 		Subd. 4c.MnSCU service credit reporting. For all part-time service rendered on or 
172.24 	after July 1, 2004, the service credit reporting requirement in subdivision 4b for all part-time 
172.25 	employees of the Minnesota State Colleges and Universities system must be met by the 
172.26 	Minnesota State Colleges and Universities system reporting to the association on or before 
172.27 	July 31 of each year the final calculation of each part-time member's service credit for the 
172.28 	immediately preceding fiscal year based on the employee's assignments for the fiscal year.

172.29 	Sec. 39. Minnesota Statutes 2014, section 354.55, subdivision 10, is amended to read:
172.30 		Subd. 10.Reduced benefits. Any benefit to which any person may be entitled 
172.31 	under this chapter may be reduced in amount upon application of the person entitled 
172.32 	thereto to the board of trustees, provided that suchexecutive director if the person shall 
172.33 	first relinquishrelinquishes in writing all claim to that part of the full benefit which is the 
172.34 	difference between the benefit which the person would be otherwise entitled to receive 
173.1 	and the benefit which the person will receive after the benefit reduction. The reduced 
173.2 	benefit shall beis payment in full of all amounts due under this chapter for the month for 
173.3 	which the payment is made and acceptance of the reduced benefit releases the retirement 
173.4 	association from all obligation to pay to suchthe person the difference between the amount 
173.5 	of the reduced benefit and the full amount of the benefit which suchthe person would 
173.6 	otherwise have received. After July 1, 1971, Any benefit reduced under the provisions of 
173.7 	this subdivision may not again be restored.

173.8 	Sec. 40. Minnesota Statutes 2014, section 354A.011, subdivision 6, is amended to read:
173.9 		Subd. 6.Approved actuary. "Approved actuary" means anyan actuary who is 
173.10 	either a fellow of the society of actuaries or who has at least 15 years of service to major 
173.11 	public employee retirement funds or any firm which retains such an actuary on its staff 
173.12 	meets the definition in section 356.215, subdivision 1, paragraph (c).

173.13 	Sec. 41. Minnesota Statutes 2014, section 354A.092, is amended to read:
173.14 	354A.092 SABBATICAL LEAVE.
173.15 	Any teacher in the coordinated program of the St. Paul Teachers Retirement Fund 
173.16 	Association who is granted a sabbatical leave is entitled to receive allowable service credit 
173.17 	in the association for periods of sabbatical leave. To obtain the service credit, the teacher 
173.18 	on sabbatical leave shall make an employee contribution to the association. No teacher is 
173.19 	entitled to receive more than three years of allowable service credit under this section for 
173.20 	a period or periods of sabbatical leave during any ten consecutive years. If the teacher 
173.21 	granted a sabbatical leave makes the employee contribution for a period of sabbatical 
173.22 	leave under this section, the employing unit shall make an employer contribution on 
173.23 	behalf of the teacher to the association for that period of sabbatical leave in the manner 
173.24 	described in section 354A.12, subdivision 2a. The employee and employer contributions 
173.25 	must be in an amount equal to the employee and employer contribution rates in effect for 
173.26 	other active members of the association covered by the same program applied to a salary 
173.27 	figure equal to the teacher's actual covered salary for the plan year immediately preceding 
173.28 	the sabbatical leave period. Payment of the employee contribution authorized under this 
173.29 	section must be made by the teacher on or before June 30 of the year next following 
173.30 	the year in which the sabbatical leave terminated and must be made without interest. 
173.31 	For sabbatical leaves taken after June 30, 1986, The required employer contributions 
173.32 	must be paid by the employing unit within 30 days after notification by the association 
173.33 	of the amount due. If the employee contributions for the sabbatical leave period are 
173.34 	less than an amount equal to the applicable contribution rate applied to a salary figure 
174.1 	equal to the teacher's actual covered salary for the plan year immediately preceding the 
174.2 	sabbatical leave period, service credit must be prorated. The prorated service credit must 
174.3 	be determined by the ratio between the amount of the actual payment which was made and 
174.4 	the full contribution amount payable under this section.

174.5 	Sec. 42. Minnesota Statutes 2014, section 354A.12, subdivision 3c, is amended to read:
174.6 		Subd. 3c.Termination of supplemental contributions and direct matching 
174.7 	and state aid. (a) The supplemental contributions payable to the St. Paul Teachers 
174.8 	Retirement Fund Association by Independent School District No. 625 under section 
174.9 	423A.02, subdivision 3, and all forms of aid under subdivision 3a to the St. Paul Teachers 
174.10 	Retirement Fund Association must continue until the currentactuarial value of assets of 
174.11 	the fund equal or exceed the actuarial accrued liability of the fund as determined in the 
174.12 	most recent actuarial report for the fund by the actuary retained under section 356.214
174.13 	or until the established date for full funding under section 356.215, subdivision 11, 
174.14 	whichever occurs earlier.
174.15 	(b) The aid to the Duluth Teachers Retirement Fund Association under section 
174.16 	423A.02, subdivision 3, and all forms of state aid under subdivision 3a to the Duluth 
174.17 	Teachers Retirement Fund Association must continue until the current assets of the fund 
174.18 	equal or exceed the actuarial accrued liability of the fund as determined in the most 
174.19 	recent actuarial report for the fund by the actuary retained under section 356.214 or until 
174.20 	the established date for full funding under section 356.215, subdivision 11, whichever 
174.21 	occurs earlier.

174.22 	Sec. 43. Minnesota Statutes 2014, section 354A.31, subdivision 7, is amended to read:
174.23 		Subd. 7. Reduction for early retirement. (a) This subdivision applies to a person 
174.24 	who has become at least 55 years old and first becomes a coordinated member after 
174.25 	June 30, 1989, and to any other coordinated member who has become at least 55 years 
174.26 	old and whose annuity is higher when calculated using the retirement annuity formula 
174.27 	percentage in subdivision 4, paragraph (d), or subdivision 4a, paragraph (d), as applicable, 
174.28 	in conjunction with this subdivision than when calculated under subdivision 4, paragraph 
174.29 	(c), or subdivision 4a, paragraph (c), in conjunction with subdivision 6.
174.30 	(b) A coordinated member who retires before the normal retirement age shall be 
174.31 	paid theis entitled to receive a retirement annuity calculated using the retirement annuity 
174.32 	formula percentage in subdivision 4, paragraph (d), or subdivision 4a, paragraph (d), 
174.33 	whichever is applicable applies, multiplied by the applicable early retirement factor 
174.34 	specified below:

175.1		Under age 62
	Age 62 or older
	
175.2		or less than 30 years of service
	with 30 years of service

175.3	Normal retirement age:
	65
	66
	65
	66
	
175.4	Age at retirement
					
175.5	55
	0.5376
	0.4592
			
175.6	56
	0.5745
	0.4992
			
175.7	57
	0.6092
	0.5370
			
175.8	58
	0.6419
	0.5726
			
175.9	59
	0.6726
	0.6062
			
175.10	60
	0.7354
	0.6726
			
175.11	61
	0.7947
	0.7354
			
175.12	62
	0.8507
	0.7947
	0.8831
	0.8389
	
175.13	63
	0.9035
	0.8507
	0.9246
	0.8831
	
175.14	64
	0.9533
	0.9035
	0.9635
	0.9246
	
175.15	65
	1.0000
	0.9533
	1.0000
	0.9635
	
175.16	66
		1.0000
		1.0000
	
175.17 	For normal retirement ages between ages 65 and 66, the early retirement factors will 
175.18 	must be determined by linear interpolation between the early retirement factors applicable 
175.19 	for normal retirement ages 65 and 66.

175.20 	Sec. 44. Minnesota Statutes 2014, section 356.215, subdivision 1, is amended to read:
175.21 		Subdivision 1.Definitions. (a) For the purposes of sections 3.85 and 356.20 to 
175.22 	356.23, each of the terms in the following paragraphs has the meaning given.
175.23 	(b) "Actuarial valuation" means a set of calculations prepared by an actuary retained 
175.24 	under section 356.214 if so required under section 3.85, or otherwise, by an approved 
175.25 	actuary, to determine the normal cost and the accrued actuarial liabilities of a benefit 
175.26 	plan, according to the entry age actuarial cost method and based upon stated assumptions 
175.27 	including, but not limited to rates of interest, mortality, salary increase, disability, 
175.28 	withdrawal, and retirement and to determine the payment necessary to amortize over a 
175.29 	stated period any unfunded accrued actuarial liability disclosed as a result of the actuarial 
175.30 	valuation of the benefit plan.
175.31 	(c) "Approved actuary" means:
175.32 	(1)  a person who is regularly engaged in the business of providing actuarial services 
175.33 	and who is a fellow in the Society of Actuaries.; or
175.34 	(2) a firm that retains a person described in clause (1) on its staff.
175.35 	(d) "Entry age actuarial cost method" means an actuarial cost method under which 
175.36 	the actuarial present value of the projected benefits of each individual currently covered 
175.37 	by the benefit plan and included in the actuarial valuation is allocated on a level basis over 
176.1 	the service of the individual, if the benefit plan is governed by section 424A.093, or over 
176.2 	the earnings of the individual, if the benefit plan is governed by any other law, between the 
176.3 	entry age and the assumed exit age, with the portion of the actuarial present value which is 
176.4 	allocated to the valuation year to be the normal cost and the portion of the actuarial present 
176.5 	value not provided for at the valuation date by the actuarial present value of future normal 
176.6 	costs to be the actuarial accrued liability, with aggregation in the calculation process to be 
176.7 	the sum of the calculated result for each covered individual and with recognition given to 
176.8 	any different benefit formulas which may apply to various periods of service.
176.9 	(e) "Experience study" means a report providing experience data and an actuarial 
176.10 	analysis of the adequacy of the actuarial assumptions on which actuarial valuations are 
176.11 	based.
176.12 	(f) "Actuarial value of assets" means the market value of all assets as of the 
176.13 	preceding June 30, reduced by:
176.14 	(1) 20 percent of the difference between the actual net change in the market value 
176.15 	of total assets between the June 30 that occurred three years earlier and the June 30 that 
176.16 	occurred four years earlier and the computed increase in the market value of total assets 
176.17 	over that fiscal year period if the assets had earned a rate of return on assets equal to the 
176.18 	annual percentage preretirement interest rate assumption used in the actuarial valuation 
176.19 	for the July 1 that occurred four years earlier;
176.20 	(2) 40 percent of the difference between the actual net change in the market value 
176.21 	of total assets between the June 30 that occurred two years earlier and the June 30 that 
176.22 	occurred three years earlier and the computed increase in the market value of total assets 
176.23 	over that fiscal year period if the assets had earned a rate of return on assets equal to the 
176.24 	annual percentage preretirement interest rate assumption used in the actuarial valuation 
176.25 	for the July 1 that occurred three years earlier;
176.26 	(3) 60 percent of the difference between the actual net change in the market value 
176.27 	of total assets between the June 30 that occurred one year earlier and the June 30 that 
176.28 	occurred two years earlier and the computed increase in the market value of total assets 
176.29 	over that fiscal year period if the assets had earned a rate of return on assets equal to the 
176.30 	annual percentage preretirement interest rate assumption used in the actuarial valuation 
176.31 	for the July 1 that occurred two years earlier; and
176.32 	(4) 80 percent of the difference between the actual net change in the market value 
176.33 	of total assets between the most recent June 30 and the June 30 that occurred one year 
176.34 	earlier and the computed increase in the market value of total assets over that fiscal year 
176.35 	period if the assets had earned a rate of return on assets equal to the annual percentage 
177.1 	preretirement interest rate assumption used in the actuarial valuation for the July 1 that 
177.2 	occurred one year earlier.
177.3 	(g) "Unfunded actuarial accrued liability" means the total current and expected 
177.4 	future benefit obligations, reduced by the sum of the actuarial value of assets and the 
177.5 	present value of future normal costs.
177.6 	(h) "Pension benefit obligation" means the actuarial present value of credited 
177.7 	projected benefits, determined as the actuarial present value of benefits estimated to be 
177.8 	payable in the future as a result of employee service attributing an equal benefit amount, 
177.9 	including the effect of projected salary increases and any step rate benefit accrual rate 
177.10 	differences, to each year of credited and expected future employee service.

177.11 	Sec. 45. Minnesota Statutes 2014, section 356.215, subdivision 18, is amended to read:
177.12 		Subd. 18.Establishment of actuarial assumptions. (a) Before July 2, 2010, the 
177.13 	actuarial assumptions used for the preparation of actuarial valuations under this section 
177.14 	that are other than preretirement interest, postretirement interest, salary increase, and 
177.15 	payroll increase may be changed only with the approval of the Legislative Commission on 
177.16 	Pensions and Retirement or after a period of one year has elapsed since the date on which 
177.17 	the proposed assumption change or changes were received by the Legislative Commission 
177.18 	on Pensions and Retirement without commission action.
177.19 	(b) After July 1, 2010,(a) The actuarial assumptions used for the preparation 
177.20 	of actuarial valuations under this section that are other than postretirement interest and 
177.21 	preretirementthe interest rate may be changed only with the approval of the Legislative 
177.22 	Commission on Pensions and Retirement or after a period of one year has elapsed since 
177.23 	the date on which the proposed assumption change or changes were received by the 
177.24 	Legislative Commission on Pensions and Retirement without commission action.
177.25 	(c)(b) A change in the applicable actuarial assumptions may be proposed by the 
177.26 	governing board of the applicable pension fund or relief association, by thean actuary 
177.27 	retained by the joint retirement systems under section 356.214 or by the actuary retained 
177.28 	by a local police or firefighters relief association governed by sections 424A.091 to 
177.29 	424A.096 or by Laws 2013, chapter 111, article 5, sections 31 to 42, if one is retained.

177.30 	Sec. 46. Minnesota Statutes 2014, section 356.245, is amended to read:
177.31 	356.245 LOCAL ELECTED OFFICIALS.
177.32 	An elected official who is covered by section 353.01, subdivision 2a, or 353D.01, 
177.33 	subdivision 2, whichever applies, is eligible to participate in the state of Minnesotaa 
177.34 	deferred compensation plan under section 356.24. The applicable local governmental unit 
178.1 	may make the matching employer contributions authorized by that section on the part 
178.2 	of a participating elected official.

178.3 	Sec. 47. Minnesota Statutes 2014, section 356.40, is amended to read:
178.4 	356.40 DATE FOR PAYMENT OF ANNUITIES AND BENEFITS.
178.5 	(a) Notwithstanding any law to the contrary, all annuities and benefits payable on 
178.6 	and after December 1, 1977 by a covered retirement fund, as defined in section 356.30, 
178.7 	subdivision 3, must be paid in advance for each month during the first week of that month. 
178.8 	The bylaws of local retirement funds must be amended accordingly.
178.9 	(b) In no event, however, may this section authorize the payment of both a retirement 
178.10 	annuity and a surviving spouse's benefit in one month where the law governing the 
178.11 	applicable retirement fund provides for the payment of the retired member's retirement 
178.12 	annuity to the surviving spouse for the month in which the retired member dies.

178.13 	Sec. 48. Minnesota Statutes 2014, section 356.407, subdivision 1, is amended to read:
178.14 		Subdivision 1.Restoration upon termination of remarriage. Notwithstanding any 
178.15 	provision to the contrary of the laws governing any of the retirement plans enumerated 
178.16 	in subdivision 2, any person who was receiving a surviving spouse's benefit from any of 
178.17 	those plans and whose benefit terminated solely because of remarriage is, if the remarriage 
178.18 	terminates for any reason, again entitled upon reapplication to a surviving spouse's benefit; 
178.19 	provided, however, that the person is not entitled to retroactive payments for the period of 
178.20 	remarriage. The benefit resumes at the level which the person would have been receiving 
178.21 	if there had been no remarriage. This section applies prospectively to any person who first 
178.22 	becomes entitled to receive a surviving spouse's benefit on or after May 18, 1975, and 
178.23 	also applies retroactively to any person who first became entitled to receive a surviving 
178.24 	spouse's benefit before May 18, 1975; provided, however, that no person is entitled to 
178.25 	retroactive payments for any period of time before May 18, 1975.

178.26 	Sec. 49. Minnesota Statutes 2014, section 356.415, subdivision 1, is amended to read:
178.27 		Subdivision 1.Annual postretirement adjustments; generally. (a) Except as 
178.28 	otherwise provided in subdivision 1a, 1b, 1c, 1d, 1e, or 1f, retirement annuity, disability 
178.29 	benefit, or survivor benefit recipients of a covered retirement plan are entitled to a 
178.30 	postretirement adjustment annually on January 1, as follows:
178.31 	(1) a postretirement increase of 2.5 percent must be applied each year, effective 
178.32 	January 1, to the monthly annuity or benefit of each annuitant or benefit recipient who has 
179.1 	been receiving an annuity or a benefit for at least 12 full months prior to the January 1 
179.2 	increase; and
179.3 	(2) for each annuitant or benefit recipient who has been receiving an annuity or a 
179.4 	benefit amount for at least one full month, an annual postretirement increase of 1/12 of 2.5 
179.5 	percent for each month that the person has been receiving an annuity or benefit must be 
179.6 	applied, effective on January 1 following the calendar year in which the person has been 
179.7 	retired for less than 12 months.
179.8 	(b) The increases provided by this subdivision commence on January 1, 2010.
179.9 	(c)(b) An increase in annuity or benefit payments under this section must be made 
179.10 	automatically unless written notice is filed by the annuitant or benefit recipient with the 
179.11 	executive director of the covered retirement plan requesting that the increase not be made.

179.12 	Sec. 50. Minnesota Statutes 2014, section 356.415, subdivision 1a, is amended to read:
179.13 		Subd. 1a.Annual postretirement adjustments; Minnesota State Retirement 
179.14 	System plans other than State Patrol retirement plan. (a) Retirement annuity, disability 
179.15 	benefit, or survivor benefit recipients of the legislators retirement plans, including 
179.16 	constitutional officers as specified in chapter 3A, the general state employees retirement 
179.17 	plan, the correctional state employees retirement plan, the unclassified state employees 
179.18 	retirement program, and the judges retirement plan are entitled to a postretirement 
179.19 	adjustment annually on January 1, as follows:
179.20 	(1) a postretirement increase of two percent must be applied each year, effective 
179.21 	on January 1, to the monthly annuity or benefit of each annuitant or benefit recipient 
179.22 	who has been receiving an annuity or a benefit for at least 18 full months before the 
179.23 	January 1 increase; and
179.24 	(2) for each annuitant or benefit recipient who has been receiving an annuity or 
179.25 	a benefit for at least six full months, an annual postretirement increase of 1/12 of two 
179.26 	percent for each month that the person has been receiving an annuity or benefit must be 
179.27 	applied, effective January 1, following the calendar year in which the person has been 
179.28 	retired for at least six months, but has been retired for less than 18 months.
179.29 	(b) The increases provided by this subdivision commence on January 1, 2011. 
179.30 	Increases under this subdivision for the general state employees retirement plan, the 
179.31 	correctional state employees retirement plan, or the judges retirement plan terminate on 
179.32 	December 31 of the calendar year in which two prior consecutive actuarial valuations 
179.33 	prepared by the approved actuary under sections 356.214 and 356.215 and the standards 
179.34 	for actuarial work promulgated by the Legislative Commission on Pensions and 
179.35 	Retirement indicates that the market value of assets of the retirement plan equals or 
180.1 	exceeds 90 percent of the actuarial accrued liability of the retirement plan and increases 
180.2 	under subdivision 1 recommence after that date. Increases under this subdivision for 
180.3 	the legislators retirement plan or the elected state officers retirement plan terminate 
180.4 	on December 31 of the calendar year in which the actuarial valuation prepared by the 
180.5 	approved actuary under sections 356.214 and 356.215 and the standards for actuarial work 
180.6 	promulgated by the Legislative Commission on Pensions and Retirement indicates that the 
180.7 	market value of assets of the general state employees retirement plan equals or exceeds 
180.8 	90 percent of the actuarial accrued liability of the retirement plan and increases under 
180.9 	subdivision 1 recommence after that date.
180.10 	(c) An increase in annuity or benefit payments under this subdivision must be made 
180.11 	automatically unless written notice is filed by the annuitant or benefit recipient with the 
180.12 	executive director of the applicable covered retirement plan requesting that the increase 
180.13 	not be made.

180.14 	Sec. 51. Minnesota Statutes 2014, section 356.415, subdivision 1d, is amended to read:
180.15 		Subd. 1d.Teachers Retirement Association annual postretirement adjustments.
 180.16 	(a) Retirement annuity, disability benefit, or survivor benefit recipients of the Teachers 
180.17 	Retirement Association are entitled to a postretirement adjustment annually on January 
180.18 	1, as follows:
180.19 	(1) for January 1, 2011, and January 1, 2012, no postretirement increase is payable;
180.20 	(2)(1) for January 1, 2013, and each successive January 1 until funding stability is 
180.21 	restored, a postretirement increase of two percent must be applied each year, effective 
180.22 	on January 1, to the monthly annuity or benefit amount of each annuitant or benefit 
180.23 	recipient who has been receiving an annuity or a benefit for at least 18 full months prior 
180.24 	to the January 1 increase;
180.25 	(3)(2) for January 1, 2013, and each successive January 1 until funding stability is 
180.26 	restored, for each annuitant or benefit recipient who has been receiving an annuity or a 
180.27 	benefit for at least six full months before the January 1 increase, an annual postretirement 
180.28 	increase of 1/12 of two percent for each month the person has been receiving an annuity or 
180.29 	benefit must be applied, effective January 1, for which the person has been retired for at 
180.30 	least six months but less than 18 months;
180.31 	(4)(3) for each January 1 following the restoration of funding stability, a 
180.32 	postretirement increase of 2.5 percent must be applied each year, effective January 1, to 
180.33 	the monthly annuity or benefit amount of each annuitant or benefit recipient who has 
180.34 	been receiving an annuity or a benefit for at least 18 full months prior to the January 1 
180.35 	increase; and
181.1 	(5)(4) for each January 1 following the restoration of funding stability, for each 
181.2 	annuitant or benefit recipient who has been receiving an annuity or a benefit for at least 
181.3 	six full months before the January 1 increase, an annual postretirement increase of 1/12 
181.4 	of 2.5 percent for each month the person has been receiving an annuity or benefit must 
181.5 	be applied, effective January 1, for which the person has been retired for at least six 
181.6 	months but less than 18 months.
181.7 	(b) Funding stability is restored when the market value of assets of the Teachers 
181.8 	Retirement Association equals or exceeds 90 percent of the actuarial accrued liabilities 
181.9 	of the Teachers Retirement Association in the two most recent prior actuarial valuations 
181.10 	prepared under section 356.215 and the standards for actuarial work by the approved 
181.11 	actuary retained by the Teachers Retirement Association under section 356.214.
181.12 	(c) An increase in annuity or benefit payments under this section must be made 
181.13 	automatically unless written notice is filed by the annuitant or benefit recipient with the 
181.14 	executive director of the Teachers Retirement Association requesting that the increase 
181.15 	not be made.
181.16 	(d) The retirement annuity payable to a person who retires before becoming eligible 
181.17 	for Social Security benefits and who has elected the optional payment as provided in 
181.18 	section 354.35 must be treated as the sum of a period-certain retirement annuity and a life 
181.19 	retirement annuity for the purposes of any postretirement adjustment. The period-certain 
181.20 	retirement annuity plus the life retirement annuity must be the annuity amount payable 
181.21 	until age 62, 65, or normal retirement age, as selected by the member at retirement, for an 
181.22 	annuity amount payable under section 354.35. A postretirement adjustment granted on 
181.23 	the period-certain retirement annuity must terminate when the period-certain retirement 
181.24 	annuity terminates.

181.25 	Sec. 52. Minnesota Statutes 2014, section 356.415, subdivision 1e, is amended to read:
181.26 		Subd. 1e.Annual postretirement adjustments; State Patrol retirement plan.
 181.27 	(a) Retirement annuity, disability benefit, or survivor benefit recipients of the State Patrol 
181.28 	retirement plan are entitled to a postretirement adjustment annually on January 1, as 
181.29 	follows:
181.30 	(1) a postretirement increase of one percent must be applied each year, effective on 
181.31 	January 1, to the monthly annuity or benefit of each annuitant or benefit recipient who 
181.32 	has been receiving an annuity or a benefit for at least 18 full months before the January 1 
181.33 	increase; and
181.34 	(2) for each annuitant or benefit recipient who has been receiving an annuity or a 
181.35 	benefit for at least six full months, an annual postretirement increase of 1/12 of one percent 
182.1 	for each month that the person has been receiving an annuity or benefit must be applied, 
182.2 	effective January 1, following the calendar year in which the person has been retired for at 
182.3 	least six months, but has been retired for less than 18 months.
182.4 	(b) The increases provided by this subdivision commence on January 1, 2014. 
182.5 	Increases under paragraph (a) for the State Patrol retirement plan terminate on December 
182.6 	31 of the calendar year in which two prior consecutive actuarial valuations prepared by 
182.7 	the approved actuary under sections 356.214 and 356.215 and the standards for actuarial 
182.8 	work promulgated by the Legislative Commission on Pensions and Retirement indicates 
182.9 	that the market value of assets of the retirement plan equals or exceeds 85 percent of 
182.10 	the actuarial accrued liability of the retirement plan and increases under paragraph (c) 
182.11 	recommence after that date.
182.12 	(c) Retirement annuity, disability benefit, or survivor benefit recipients of the State 
182.13 	Patrol retirement plan are entitled to a postretirement adjustment annually on January 
182.14 	1, as follows:
182.15 	(1) a postretirement increase of 1.5 percent must be applied each year, effective on 
182.16 	January 1, to the monthly annuity or benefit of each annuitant or benefit recipient who 
182.17 	has been receiving an annuity or a benefit for at least 18 full months before the January 1 
182.18 	increase; and
182.19 	(2) for each annuitant or benefit recipient who has been receiving an annuity or a 
182.20 	benefit for at least six full months, an annual postretirement increase of 1/12 of 1.5 percent 
182.21 	for each month that the person has been receiving an annuity or benefit must be applied, 
182.22 	effective January 1, following the calendar year in which the person has been retired for at 
182.23 	least six months, but has been retired for less than 18 months.
182.24 	(d) Increases under paragraph (c) for the State Patrol retirement plan terminate on 
182.25 	December 31 of the calendar year in which two prior consecutive actuarial valuations 
182.26 	prepared by the approved actuary under sections 356.214 and 356.215 and the standards 
182.27 	for actuarial work adopted by the Legislative Commission on Pensions and Retirement 
182.28 	indicates that the market value of assets of the retirement plan equals or exceeds 90 
182.29 	percent of the actuarial accrued liability of the retirement plan and increases under 
182.30 	subdivision 1 recommence after that date.
182.31 	(e) An increase in annuity or benefit payments under this subdivision must be made 
182.32 	automatically unless written notice is filed by the annuitant or benefit recipient with the 
182.33 	executive director of the applicable covered retirement plan requesting that the increase 
182.34 	not be made.

182.35 	Sec. 53. Minnesota Statutes 2014, section 356.415, subdivision 1f, is amended to read:
183.1 		Subd. 1f.Annual postretirement adjustments; Minnesota State Retirement 
183.2 	System judges retirement plan. (a) The increases provided under this subdivision begin 
183.3 	on January 1, 2014, and are in lieu of increases under subdivision 1 or 1a for retirement 
183.4 	annuity, disability benefit, or survivor benefit recipients of the judges retirement plan.
183.5 	(b) Retirement annuity, disability benefit, or survivor benefit recipients of the 
183.6 	judges retirement plan are entitled to a postretirement adjustment annually on January 
183.7 	1, as follows:
183.8 	(1) a postretirement increase of 1.75 percent must be applied each year, effective 
183.9 	on January 1, to the monthly annuity or benefit of each annuitant or benefit recipient 
183.10 	who has been receiving an annuity or a benefit for at least 18 full months before the 
183.11 	January 1 increase; and
183.12 	(2) for each annuitant or benefit recipient who has been receiving an annuity or a 
183.13 	benefit for at least six full months, an annual postretirement increase of 1/12 of 1.75 
183.14 	percent for each month that the person has been receiving an annuity or benefit must be 
183.15 	applied, effective January 1, following the calendar year in which the person has been 
183.16 	retired for at least six months, but has been retired for less than 18 months.
183.17 	(c) Increases under this subdivision terminate on December 31 of the calendar year 
183.18 	in which two prior consecutive actuarial valuations prepared by the approved actuary 
183.19 	under sections 356.214 and 356.215 and the standards for actuarial work promulgated 
183.20 	by the Legislative Commission on Pensions and Retirement indicates that the market 
183.21 	value of assets of the judges retirement plan equals or exceeds 70 percent of the actuarial 
183.22 	accrued liability of the retirement plan. Increases under subdivision 1 or 1a, whichever is 
183.23 	applicable, begin on the January 1 next following that date.
183.24 	(d) An increase in annuity or benefit payments under this subdivision must be made 
183.25 	automatically unless written notice is filed by the annuitant or benefit recipient with the 
183.26 	executive director of the applicable covered retirement plan requesting that the increase 
183.27 	not be made.

183.28 	Sec. 54. Minnesota Statutes 2014, section 356.431, is amended to read:
183.29 	356.431 CONVERSION OF LUMP-SUM POSTRETIREMENT AND 
183.30 	SUPPLEMENTAL PAYMENT TO AN INCREASED MONTHLY ANNUITY.
183.31 		Subdivision 1.Lump-sum postretirement payment conversion. For benefits paid 
183.32 	after December 31, 2001, to eligible persons under Minnesota Statutes 2014, section 
183.33 	356.42, the amount of the most recent lump-sum benefit payable to an eligible recipient 
183.34 	under Minnesota Statutes 2014, section 356.42 must be divided by 12. The result must be 
183.35 	added to the monthly annuity or benefit otherwise payable to an eligible recipient, must 
184.1 	become a permanent part of the benefit recipient's pension, and must be included in any 
184.2 	pension benefit subject to future increases postretirement adjustments.

184.3 	Sec. 55. Minnesota Statutes 2014, section 356.62, is amended to read:
184.4 	356.62 PAYMENT OF EMPLOYEE CONTRIBUTION.
184.5 	(a) For purposes of any public pension plan, as defined in section 356.63, paragraph 
184.6 	(b), each employer shall pick up the employee contributions required pursuant tounder 
184.7 	law or under the pension plan document for all salary payable after December 31, 1982 
184.8 	salaries. If the United States Treasury Department rules that under section 414(h) of the 
184.9 	Internal Revenue Code of 1986, as amended through December 31, 1992, that These 
184.10 	picked up contributions are not includable in the employee's adjusted gross income until 
184.11 	they are distributed or made available, then these picked up contributions must be treated 
184.12 	as employer contributions in determining tax treatment under the Internal Revenue Code 
184.13 	of 1986, as amended through December 31, 1992, and the employer shall discontinue 
184.14 	withholding federal income taxes on the amount of these contributions. The employer 
184.15 	shall pay these picked up contributions from the same source of funds as is used to pay the 
184.16 	salary of the employee. The employer shall pick up these employee contributions by a 
184.17 	reduction in the cash salary of the employee.
184.18 	(b) Employee contributions that are picked up must be treated for all purposes of the 
184.19 	public pension plan in the same manner and to the same extent as employee contributions 
184.20 	that were made prior tobefore the date on which the employee contributions pick up 
184.21 	began. The amount of the employee contributions that are picked up must be included 
184.22 	in the salary upon which retirement coverage is credited and upon which retirement and 
184.23 	survivor's benefits are determined. For purposes of this section, "employee" means 
184.24 	any person covered by a public pension plan. For purposes of this section, "employee 
184.25 	contributions" include any sums deducted from the employee's salary or wages or 
184.26 	otherwise paid in lieu thereof, regardless of whether they are denominated contributions 
184.27 	by the public pension plan.
184.28 	(c) For any calendar year in which withholding has been reduced under this section, 
184.29 	The employing unit shall supply each employee and the commissioner of revenue with an 
184.30 	information return indicating the amount of the employer's picked-up contributions for the 
184.31 	calendar year that were not subject to withholding. This return must be provided to the 
184.32 	employee not later than January 31 of the succeeding calendar year. The commissioner of 
184.33 	revenue shall prescribe the form of the return and the provisions of section 289A.12 must 
184.34 	apply to the extent not inconsistent with the provisions of this section.

185.1 	Sec. 56. Minnesota Statutes 2014, section 356B.10, subdivision 2, is amended to read:
185.2 		Subd. 2.Building; related facilities. (a) The commissioner of administration 
185.3 	mayshall provide a building and related facilities to be jointly occupied by the board of 
185.4 	directors of the Minnesota State Retirement System, the board of trustees of the Public 
185.5 	Employees Retirement Association, and the board of trustees of the Teachers Retirement 
185.6 	Association for the administration of their public pension systems.
185.7 	(b) Design of the facilities is not subject to section 16B.33. The competitive 
185.8 	acquisition process set forth in chapter 16C does not apply if the process set forth in 
185.9 	subdivision 3 is followed.
185.10 	(c) The boards and the commissioner must submit the plans for a public pension 
185.11 	facility under this section to the chair of the house of representatives Ways and Means 
185.12 	Committee and to the chair of the senate State Government Finance Committee for their 
185.13 	approval before the plans are implemented.

185.14 	Sec. 57. Minnesota Statutes 2014, section 356B.10, subdivision 3, is amended to read:
185.15 		Subd. 3.Contracting procedures. (a) The commissioner may enter into a contract 
185.16 	for facilities with a contractor to furnish the architectural, engineering, and related services 
185.17 	as well as the labor, materials, supplies, equipment, and related construction services on 
185.18 	the basis of a request for qualifications and competitive responses received through a 
185.19 	request for proposals process that must include the items listed in paragraphs (b) to (i).
185.20 	(b) Before issuing a request for qualifications and a request for proposals, the 
185.21 	commissioner, with the assistance of the boards, shall prepare performance criteria and 
185.22 	specifications that include:
185.23 	(1) a general floor plan or layout indicating the general dimensions of the public 
185.24 	building and space requirements;
185.25 	(2) design criteria for the exterior and site area;
185.26 	(3) performance specifications for all building systems and components to ensure 
185.27 	quality and cost efficiencies;
185.28 	(4) conceptual floor plans for systems space;
185.29 	(5) preferred types of interior finishes, styles of windows, lighting and outlets, doors, 
185.30 	and features such as built-in counters and telephone wiring;
185.31 	(6) mechanical and electrical requirements;
185.32 	(7) special interior features required; and
185.33 	(8) a completion schedule.
185.34 	(c) The commissioner shall first solicit statements of qualifications from eligible 
185.35 	contractors and select more than one qualified contractor based upon experience, technical 
186.1 	competence, past performance, capability to perform, and other appropriate facts. 
186.2 	Contractors selected under this process must be, employ, or have as a partner, member, 
186.3 	coventurer, or subcontractor, persons licensed and registered under chapter 326 to provide 
186.4 	the services required to design and complete the project. The commissioner does not 
186.5 	have to select any of the respondents if none reasonably fulfill the criteria set forth in 
186.6 	this paragraph.
186.7 	(d) The contractors selected shall be asked to respond to a request for proposals. 
186.8 	Responses must include site plans, design concept, elevation, statement of material to 
186.9 	be used, floor layouts, a detailed development budget, and a total cost to complete the 
186.10 	project. The proposal must indicate that the contractor obtained at least two proposals 
186.11 	from subcontractors for each item of work and must set forth how the subcontractors 
186.12 	were selected. The commissioner, with the assistance of the boards, shall evaluate the 
186.13 	proposals based upon design, cost, quality, aesthetics, and the best overall value to the 
186.14 	state pension funds. The commissioner need not select any of the proposals submitted 
186.15 	and reserves the right to reject any and all proposals, and may terminate the process or 
186.16 	revise the request for proposals and solicit new proposals if the commissioner determines 
186.17 	that the best interests of the pension funds would be better served by doing so. Proposals 
186.18 	submitted are nonpublic data until the contract is awarded.
186.19 	(e) The contractor selected must comply with sections 574.26 to 574.261. Before 
186.20 	executing a final contract, the contractor selected shall certify a firm construction price 
186.21 	and completion date.
186.22 	(f) The commissioner may consider building sites in the city of St. Paul and 
186.23 	surrounding suburbs.
186.24 	(g)(a) Any land, building, or facility leased, constructed, or acquired and any 
186.25 	leasehold interest acquired under this section must be held by the state in trust for the three 
186.26 	retirement systems as tenants in common. Each retirement system fund must consider its 
186.27 	interest as a fixed asset of its pension fund in accordance with governmental accounting 
186.28 	standards.
186.29 	(h)(b) The commissioner may lease to another governmental subdivision,or to a 
186.30 	private company under contract with the State Board of Investment, or with the Board 
186.31 	of Directors of the Minnesota State Retirement System, whichever applies, to provide 
186.32 	deferred compensation services under section 352.965, any portion of the funds' building 
186.33 	and lands that is not required for theirthe direct use of the retirement systems upon terms 
186.34 	and conditions that they deem to be in the best interest of the pension funds. Any income 
186.35 	accruing from the rentals must be separately accounted for and utilized to offset ongoing 
186.36 	administrative expenses and any excess must be carried forward as a reserve for future 
187.1 	administrative expenses. The commissioner may also enter into lease agreements for 
187.2 	the establishment of satellite offices shouldif the retirement plan boards find them to 
187.3 	be necessary in order to assure their members reasonable access to their services. The 
187.4 	commissioner may lease under section 16B.24 any portion of the facilities not required for 
187.5 	the direct use of the retirement plan boards.
187.6 	(i)(c) The boards shall formulate and, adopt, and periodically revise a written 
187.7 	working agreement that sets forth the nature of each retirement system's ownership 
187.8 	interest, the duties and obligations of each system toward the construction, operation, and 
187.9 	maintenance costs of its facilities, and identifies one retirement fund to serve as manager 
187.10 	for operating and maintenance purposes. The boards may contract with independent third 
187.11 	parties for maintenance-related activities, services, and supplies, and may use the services 
187.12 	of the Department of Administration where the boards determine that it is economically 
187.13 	feasible to do so. If the boards cannot agree or cannot resolve a dispute about the operations 
187.14 	or maintenance of the facilities, they may request the commissioner of administration to 
187.15 	appoint a representative from the department's real estate management division to serve as 
187.16 	arbitrator of the dispute with authority to issue a written resolution of the dispute.

187.17 	Sec. 58. Minnesota Statutes 2014, section 356B.10, subdivision 4, is amended to read:
187.18 		Subd. 4.Revenue bonds. (a) The commissioner of management and budget, on 
187.19 	request of the governor, may sell and issue revenue bonds in an aggregate principal amount 
187.20 	up to $38,000,000 to achieve the purposes described in subdivisions 1 and 2, plus the 
187.21 	amount needed to pay issuance costs and interest costs and to establish necessary reserves 
187.22 	to secure the bonds. The commissioner of management and budget may issue bonds for the 
187.23 	purpose of refunding bonds issued under this subdivision Minnesota Statutes 2001, section 
187.24 	356.89, subdivision 4. The bonds may be sold and issued on terms and in a manner the 
187.25 	commissioner of management and budget determines to be in the best interests of the state.
187.26 	(b) The proceeds of the bonds must be credited to a bond proceeds account in the 
187.27 	pension building fund which the commissioner of management and budget must create 
187.28 	in the state treasury.

187.29 	Sec. 59. Minnesota Statutes 2014, section 356B.10, subdivision 5, is amended to read:
187.30 		Subd. 5.Security. (a) The boards may pledge any or all assets of the retirement 
187.31 	fund or funds administered by the boards as security for the bonds.
187.32 	(b) The bonds and the interest on them must be paid solely from and secured by all 
187.33 	the assets of the boards pledged and appropriated for these purposes to the debt service 
188.1 	fund created in subdivision 6 and any investment income on the fund and any reserve 
188.2 	established for this purpose.
188.3 	(c) The bonds are not public debt, and the full faith, credit, and taxing powers of 
188.4 	the state are not pledged for their payment. The bonds and the interest on them must not 
188.5 	be paid, directly or indirectly, in whole or in part, from a tax of statewide application on 
188.6 	any class of property, income, transaction, or privilege.

188.7 	Sec. 60. Minnesota Statutes 2014, section 356B.10, subdivision 6, is amended to read:
188.8 		Subd. 6.Debt service fund. There is established in the state treasury a separate and 
188.9 	special pension building debt service fund. Money in the funds managed by the boards is 
188.10 	appropriated to the boards for transfer to the pension building debt service fund. Money 
188.11 	appropriated and transferred to the fund and investment income on it on hand or required 
188.12 	to be transferred to the fund must be used and is irrevocably appropriated to pay when due 
188.13 	the principal of and interest on the bonds authorizedreferenced in subdivision 4.

188.14 	Sec. 61. Minnesota Statutes 2014, section 356B.10, subdivision 7, is amended to read:
188.15 		Subd. 7.Covenants; agreements. The commissioner of management and budget 
188.16 	may, for and on behalf of the state, enter into covenants and agreements entered into by 
188.17 	the commissioner of management and budget for the construction of the pension building 
188.18 	that were not inconsistent with Minnesota Statutes 2001, section 356.89, subdivisions 1 
188.19 	to 6, and determined by the commissioner  as may be necessary or desirable to facilitate 
188.20 	the sale and issuance of the bonds on terms favorable to the state, including, but not 
188.21 	limited to, covenants and agreements relating to the payment of and security for the bonds, 
188.22 	tax exemption, and disclosure of information required by federal and state securities 
188.23 	laws. The covenants and agreements of the commissioner of management and budget, 
188.24 	constitute an enforceable contract of the state and by that contract the state pledges and 
188.25 	agrees with the holders of any bonds that the state will not limit or alter the rights vested 
188.26 	in the commissioner of management and budget to fulfill the terms of the covenants or 
188.27 	agreements made with the holders of the bonds, or in any way impair the rights and 
188.28 	remedies of the holders until the bonds, together with the interest on them, with interest 
188.29 	on any unpaid installments of interest, and all costs and expenses in connection with any 
188.30 	action or proceeding by or on behalf of the holders, are fully met and discharged. The 
188.31 	commissioner of management and budget may include this pledge and agreement of the 
188.32 	state in any covenant or agreement with the holders of the bonds. Sections 16A.672
188.33 	and 16A.675 apply to the bonds.

189.1 	Sec. 62. Minnesota Statutes 2014, section 423A.02, subdivision 1b, is amended to read:
189.2 		Subd. 1b.Additional amortization state aid. (a) Beginning October 1, 2013, 
189.3 	and Annually thereafter, the commissioner shall allocate the additional amortization 
189.4 	state aid, if any, including any state aid in excess of the limitation in subdivision 4, on 
189.5 	the following basis:
189.6 	(1) 47.1 percent to the city of Minneapolis to defray the employer costs associated 
189.7 	with police and firefighter retirement coverage;
189.8 	(2) 25.8 percent as additional funding to support the minimum fire state aid for 
189.9 	volunteer firefighter relief associations under section 69.021, subdivision 7, paragraph (d);
189.10 	(3) 12.9 percent to the city of Duluth to defray employer costs associated with 
189.11 	police and firefighter retirement coverage;
189.12 	(4) 12.9 percent to the St. Paul Teachers Retirement Fund Association if the 
189.13 	investment performance requirement of paragraph (c) is met; and
189.14 	(5) 1.3 percent to the city of Virginia to defray the employer contribution under 
189.15 	section 353.665, subdivision 8, paragraph (d).
189.16 	If there is no additional employer contribution under section 353.665, subdivision 
189.17 	8, paragraph (b), certified under subdivision 1, paragraph (d), clause (2), with respect 
189.18 	to the former Minneapolis Police Relief Association and the former Minneapolis Fire 
189.19 	Department Relief Association, the commissioner shall allocate that 47.1 percent of the 
189.20 	aid as follows: 49 percent to the Teachers Retirement Association, 21 percent to the St. 
189.21 	Paul Teachers Retirement Fund Association, and 30 percent as additional funding to 
189.22 	support minimum fire state aid for volunteer firefighters relief associations under section 
189.23 	69.021, subdivision 7, paragraph (d). If there is no employer contribution by the city of 
189.24 	Virginia under section 353.665, subdivision 8, paragraph (d), for the former Virginia Fire 
189.25 	Department Relief Association certified on or before June 30 by the executive director of 
189.26 	the Public Employees Retirement Association, the commissioner shall allocate that 1.3 
189.27 	percent of the aid as follows: 49 percent to the Teachers Retirement Association, 21 
189.28 	percent to the St. Paul Teachers Retirement Fund Association, and 30 percent as additional 
189.29 	funding to support minimum fire state aid for volunteer firefighters relief associations 
189.30 	under section 69.021, subdivision 7, paragraph (d).
189.31 	(b) The allocation must be made by the commissioner of revenue on October 1 
189.32 	annually.
189.33 	(c) With respect to the St. Paul Teachers Retirement Fund Association, annually, if 
189.34 	the teacher's association five-year average time-weighted rate of investment return does 
189.35 	not equal or exceed the performance of a composite portfolio assumed passively managed 
189.36 	(indexed) invested ten percent in cash equivalents, 60 percent in bonds and similar debt 
190.1 	securities, and 30 percent in domestic stock calculated using the formula under section 
190.2 	11A.04, clause (11), the aid allocation to the retirement fund under this section ceases 
190.3 	until the five-year annual rate of investment return equals or exceeds the performance of 
190.4 	that composite portfolio.
190.5 	(d) The amounts required under this subdivision are the amounts annually 
190.6 	appropriated to the commissioner of revenue under section 69.021, subdivision 11, 
190.7 	paragraph (d), if any, and the aid amounts in excess of the limitation in subdivision 4.

190.8 	Sec. 63. Minnesota Statutes 2014, section 424A.001, subdivision 10, is amended to 
190.9 	read:
190.10 		Subd. 10.Volunteer firefighter. "Volunteer firefighter" means a person who either:
190.11 	(1) was a member of the applicable fire department or the independent nonprofit 
190.12 	firefighting corporation and a member of the relief association on July 1, 2006; or
190.13 	(2) becameis a member of the applicable fire department or the independent 
190.14 	nonprofit firefighting corporation and is eligible for membership in the applicable relief 
190.15 	association after June 30, 2006, and:
190.16 	(i) is engaged in providing emergency response services or delivering fire education 
190.17 	or prevention services as a member of a municipal fire department, a joint powers entity 
190.18 	fire department, or an independent nonprofit firefighting corporation;
190.19 	(ii) is trained in or is qualified to provide fire suppression duties or to provide fire 
190.20 	prevention duties under subdivision 8; and
190.21 	(iii) meets any other minimum firefighter and service standards established by the 
190.22 	fire department or the independent nonprofit firefighting corporation or specified in the 
190.23 	articles of incorporation or bylaws of the relief association.

190.24 	Sec. 64. REVISOR'S INSTRUCTION.
 190.25 	The revisor of statutes shall make any technical cross-reference changes resulting 
190.26 	from amendments in this act, including any grammatical changes necessary to preserve 
190.27 	sentence structure.

190.28 	Sec. 65.  REPEALER.
 190.29 	Minnesota Statutes 2014, sections 352.271; 352.75, subdivisions 1, 3, 4, 5, and 6; 
190.30 	352.76; 352.91, subdivisions 3a and 3b; 352B.29; 353.83; 353.84; 353.85; 354.146, 
190.31 	subdivisions 1 and 3; 354.33, subdivisions 5 and 6; 354.39; 354.55, subdivisions 13, 16, 
190.32 	and 19; 354.58; 354A.35, subdivision 2a; 356.405; 356.49, subdivision 2; and 424A.03, 
190.33 	subdivision 3, are repealed.

191.1 	Sec. 66. EFFECTIVE DATE.
 191.2 	Unless otherwise specified, this article is effective July 1, 2015.

191.3 	ARTICLE 14
191.4 	PERA-MERF MERGER PROVISIONS

191.5 	Section 1. Minnesota Statutes 2014, section 256D.21, is amended to read:
191.6 	256D.21 CONTINUATION OF BENEFITS; FORMER MINNEAPOLIS 
191.7 	EMPLOYEES.
191.8 		Subdivision 1.Continuation of benefits. Each employee of the city of Minneapolis 
191.9 	who iswas transferred to and employed by the county under the provisions of section 
191.10 	256D.20 and who iswas a contributing member of a retirement system organized under 
191.11 	the provisions of Minnesota Statutes 2008, chapter 422A, is a member of the MERF 
191.12 	division of the Public Employees Retirement Association and is entitled to all of the 
191.13 	applicable benefits conferred by and is subject to all the restrictions of section 353.50.
191.14 		Subd. 2.City obligation. The cost to the public of that portion of the retirement 
191.15 	allowances or other benefits accrued while any such employee was in the service of the city 
191.16 	of Minneapolis must remain an obligation of the city and a tax must be levied and collected 
191.17 	by it to discharge its obligation as provided in section 353.50 353.27, subdivision 7 3c.
191.18 		Subd. 3.County obligation. The cost to the public of the retirement allowances or 
191.19 	other benefits accruing to employees so transferred to and employed by the county is the 
191.20 	obligation of and paid by the county in section 353.50 353.27, subdivision 7 3c. The county 
191.21 	shall pay to the general employees retirement fund of the Public Employees Retirement 
191.22 	Association those amounts. The cost to the public of the retirement coverage under this 
191.23 	section must be paid from the county revenue fund by the county auditor, and the county 
191.24 	board is authorized to levy and collect such taxes as may be necessary to pay such costs.

191.25 	Sec. 2. Minnesota Statutes 2014, section 353.01, subdivision 2a, is amended to read:
191.26 		Subd. 2a.Included employees; mandatory membership. (a) Public employees 
191.27 	whose annual salary from one governmental subdivision is stipulated in advance to exceed 
191.28 	$5,100 if the person is not a school year employee or $3,800 if the person is a school year 
191.29 	employee and who are not specifically excluded under subdivision 2b or who have not 
191.30 	been provided an option to participate under subdivision 2d, whether individually or by 
191.31 	action of the governmental subdivision, must participate as members of the association 
191.32 	with retirement coverage by the general employees retirement plan under this chapter, 
191.33 	the public employees police and fire retirement plan under this chapter, or the local 
192.1 	government correctional employees retirement plan under chapter 353E, whichever 
192.2 	applies. Membership commences as a condition of their employment on the first day of 
192.3 	their employment or on the first day that the eligibility criteria are met, whichever is later. 
192.4 	Public employees include but are not limited to:
192.5 	(1) persons whose salary meets the threshold in this paragraph from employment in 
192.6 	one or more positions within one governmental subdivision;
192.7 	(2) elected county sheriffs;
192.8 	(3) persons who are appointed, employed, or contracted to perform governmental 
192.9 	functions that by law or local ordinance are required of a public officer, including, but 
192.10 	not limited to:
192.11 	(i) town and city clerk or treasurer;
192.12 	(ii) county auditor, treasurer, or recorder;
192.13 	(iii) city manager as defined in section 353.028 who does not exercise the option 
192.14 	provided under subdivision 2d; or
192.15 	(iv) emergency management director, as provided under section 12.25;
192.16 	(4) physicians under section 353D.01, subdivision 2, who do not elect public 
192.17 	employees defined contribution plan coverage under section 353D.02, subdivision 2;
192.18 	(5) full-time employees of the Dakota County Agricultural Society;
192.19 	(6) employees of the Red Wing Port Authority who were first employed by the 
192.20 	Red Wing Port Authority before May 1, 2011, and who are not excluded employees 
192.21 	under subdivision 2b;
192.22 	(7) employees of the Seaway Port Authority of Duluth who are not excluded 
192.23 	employees under subdivision 2b;
192.24 	(8) employees of the Stevens County Housing and Redevelopment Authority who 
192.25 	were first employed by the Stevens County Housing and Redevelopment Authority before 
192.26 	May 1, 2014, and who are not excluded employees under subdivision 2b; and
192.27 	(9) employees of the Public Employees Retirement Association.
192.28 	(b) A public employee or elected official who was a member of the association on 
192.29 	June 30, 2002, based on employment that qualified for membership coverage by the public 
192.30 	employees retirement plan or the public employees police and fire plan under this chapter, 
192.31 	or the local government correctional employees retirement plan under chapter 353E as of 
192.32 	June 30, 2002, retains that membership for the duration of the person's employment in that 
192.33 	position or incumbency in elected office. Except as provided in subdivision 28, the person 
192.34 	shall participate as a member until the employee or elected official terminates public 
192.35 	employment under subdivision 11a or terminates membership under subdivision 11b.
193.1 	(c) If in any subsequent year the annual salary of an included public employee is 
193.2 	less than the minimum salary threshold specified in this subdivision, the member retains 
193.3 	membership eligibility.
193.4 	(d) For the purpose of participation in the MERF division of the general employees 
193.5 	retirement plan, public employees include employees who were members of the former 
193.6 	Minneapolis Employees Retirement Fund on June 29, 2010, and who participate as 
193.7 	members of the MERF division of the association.

193.8 	Sec. 3. Minnesota Statutes 2014, section 353.01, subdivision 6, is amended to read:
193.9 		Subd. 6.Governmental subdivision. (a) "Governmental subdivision" means a 
193.10 	county, city, town, school district within this state, or a department, unit or instrumentality 
193.11 	of state or local government, or any public body established under state or local 
193.12 	authority that has a governmental purpose, is under public control, is responsible for the 
193.13 	employment and payment of the salaries of employees of the entity, and receives a major 
193.14 	portion of its revenues from taxation, fees, assessments or from other public sources.
193.15 	(b) Governmental subdivision also means the Public Employees Retirement 
193.16 	Association, the League of Minnesota Cities, the Association of Metropolitan 
193.17 	Municipalities, charter schools formed under section 124D.10, service cooperatives 
193.18 	exercising retirement plan participation under section 123A.21, subdivision 5, joint 
193.19 	powers boards organized under section 471.59, subdivision 11, paragraph (a), family 
193.20 	service collaboratives and children's mental health collaboratives organized under 
193.21 	section 471.59, subdivision 11, paragraph (b) or (c), provided that the entities creating 
193.22 	the collaboratives are governmental units that otherwise qualify for retirement plan 
193.23 	membership, public hospitals owned or operated by, or an integral part of, a governmental 
193.24 	subdivision or governmental subdivisions, the Association of Minnesota Counties, the 
193.25 	Minnesota Inter-county Association, the Minnesota Municipal Utilities Association, the 
193.26 	Metropolitan Airports Commission, the University of Minnesota with respect to police 
193.27 	officers covered by the public employees police and fire retirement plan, the Minneapolis 
193.28 	Employees Retirement Fund for employment initially commenced after June 30, 1979, the 
193.29 	Range Association of Municipalities and Schools, soil and water conservation districts, 
193.30 	economic development authorities created or operating under sections 469.090 to 469.108, 
193.31 	the Port Authority of the city of St. Paul, the Seaway Port Authority of Duluth, the Red 
193.32 	Wing Port Authority, the Spring Lake Park Fire Department, incorporated, the Lake 
193.33 	Johanna Volunteer Fire Department, incorporated, the Red Wing Environmental Learning 
193.34 	Center, the Dakota County Agricultural Society, and Hennepin Healthcare System, Inc.
194.1 	(c) Governmental subdivision does not mean any municipal housing and 
194.2 	redevelopment authority organized under the provisions of sections 469.001 to 469.047; 
194.3 	or any port authority organized under sections 469.048 to 469.089 other than the Port 
194.4 	Authority of the city of St. Paul or the Seaway Port Authority of Duluth and other than 
194.5 	the Red Wing Port Authority; or any hospital district organized or reorganized prior to 
194.6 	July 1, 1975, under sections 447.31 to 447.37 or the successor of the district; or the board 
194.7 	of a family service collaborative or children's mental health collaborative organized 
194.8 	under sections 124D.23, 245.491 to 245.495, or 471.59, if that board is not controlled 
194.9 	by representatives of governmental units.
194.10 	(d) A nonprofit corporation governed by chapter 317A or organized under Internal 
194.11 	Revenue Code, section 501(c)(3), which is not covered by paragraph (a) or (b), is not a 
194.12 	governmental subdivision unless the entity has obtained a written advisory opinion from 
194.13 	the United States Department of Labor or a ruling from the Internal Revenue Service 
194.14 	declaring the entity to be an instrumentality of the state so as to provide that any future 
194.15 	contributions by the entity on behalf of its employees are contributions to a governmental 
194.16 	plan within the meaning of Internal Revenue Code, section 414(d).
194.17 	(e) A public body created by state or local authority may request membership on 
194.18 	behalf of its employees by providing sufficient evidence that it meets the requirements in 
194.19 	paragraph (a).
194.20 	(f) An entity determined to be a governmental subdivision is subject to the reporting 
194.21 	requirements of this chapter upon receipt of a written notice of eligibility from the 
194.22 	association.

194.23 	Sec. 4. Minnesota Statutes 2014, section 353.01, subdivision 48, is amended to read:
194.24 		Subd. 48.MERF division. "MERF division" means the separate retirement 
194.25 	plan withinformer Minneapolis Employees Retirement Fund of which the actuarial 
194.26 	liabilities and assets are merged with the general employees retirement plan of the Public 
194.27 	Employees Retirement Association containing, and the benefits of which are governed by 
194.28 	the applicable provisions of Minnesota Statutes 2008, chapter 422A.

194.29 	Sec. 5. Minnesota Statutes 2014, section 353.05, is amended to read:
194.30 	353.05 CUSTODIAN OF FUNDS.
194.31 	The commissioner of management and budget shall be ex officio treasurer of the 
194.32 	retirement funds of the association, including the MERF division, and the general bond 
194.33 	of the commissioner of management and budget to the state must be so conditioned as 
194.34 	to cover all liability for acts as treasurer of these funds. All money of the association 
195.1 	received by the commissioner of management and budget must be set aside in the state 
195.2 	treasury to the credit of the proper fund or account. The commissioner of management 
195.3 	and budget shall transmit monthly to the executive director a detailed statement of all 
195.4 	amounts so received and credited to the funds, including the MERF division. Payments 
195.5 	out of the funds, including the MERF division, may only be made on warrants issued by 
195.6 	the commissioner of management and budget, upon abstracts signed by the executive 
195.7 	director; provided that abstracts for investment may be signed by the executive director of 
195.8 	the State Board of Investment.

195.9 	Sec. 6. Minnesota Statutes 2014, section 353.06, is amended to read:
195.10 	353.06 STATE BOARD OF INVESTMENT TO INVEST FUNDS.
195.11 	The executive director shall from time to time certify to the State Board of Investment 
195.12 	for investment such portions of the funds of the association, including the MERF division, 
195.13 	as in the director's judgment may not be required for immediate use. The State Board of 
195.14 	Investment shall thereupon invest and reinvest the sum so certified, or transferred, in 
195.15 	such securities as are duly authorized as legal investments under section 11A.24  and has 
195.16 	authority to sell, convey, and exchange such securities and invest and reinvest the securities 
195.17 	when it deems it desirable to do so and shall sell securities upon request of the executive 
195.18 	director when such funds are needed for its purposes. All of the provisions regarding 
195.19 	accounting procedures and restrictions and conditions for the purchase and sale of securities 
195.20 	under chapter 11A must apply to the accounting, purchase and sale of securities for the 
195.21 	funds of the Public Employees Retirement Association, including the MERF division.

195.22 	Sec. 7. Minnesota Statutes 2014, section 353.27, subdivision 1, is amended to read:
195.23 		Subdivision 1.Income; disbursements. There is a special fund known as the 
195.24 	"general employees retirement fund," the "retirement fund," or the "fund," which must 
195.25 	include all the assets of the general employees retirement plan of the association. This 
195.26 	fund must be credited with all contributions, all interest and all other income of the 
195.27 	general employees retirement plan of the Public Employees Retirement Association that 
195.28 	are authorized by law. From this fund there is appropriated the payments authorized by 
195.29 	sections 353.01 to 353.46and by Minnesota Statutes 2008, chapter 422A, in the amounts 
195.30 	and at such time provided herein, including the expenses of administering the general 
195.31 	employees retirement plan and fund.

195.32 	Sec. 8. Minnesota Statutes 2014, section 353.27, subdivision 3b, is amended to read:
196.1 		Subd. 3b.Change in employee and employer contributions in certain instances.
 196.2 	(a) For purposes of this section:
196.3 	(1) a contribution sufficiency exists if the total of the employee contribution under 
196.4 	subdivision 2, the employer contribution under subdivision 3, the additional employer 
196.5 	contribution under subdivision 3a, and any additional contribution previously imposed 
196.6 	under this subdivision exceeds the total of the normal cost, the administrative expenses, 
196.7 	and the amortization contribution of the general employees retirement plan as reported in 
196.8 	the most recent actuarial valuation of the retirement plan prepared by the actuary retained 
196.9 	under section 356.214 and prepared under section 356.215 and the standards for actuarial 
196.10 	work of the Legislative Commission on Pensions and Retirement; and
196.11 	(2) a contribution deficiency exists if the total of the employee contributions under 
196.12 	subdivision 2, the employer contributions under subdivision 3, the additional employer 
196.13 	contribution under subdivision 3a, and any additional contribution previously imposed 
196.14 	under this subdivision is less than the total of the normal cost, the administrative expenses, 
196.15 	and the amortization contribution of the general employees retirement plan as reported in 
196.16 	the most recent actuarial valuation of the retirement plan prepared by the actuary retained 
196.17 	under section 356.214 and prepared under section 356.215 and the standards for actuarial 
196.18 	work of the Legislative Commission on Pensions and Retirement.
196.19 	(b) Employee and employer contributions to the general employees retirement plan 
196.20 	under subdivisions 2 and 3 must be adjusted:
196.21 	(1) if the regular actuarial valuation of the general employees retirement plan of the 
196.22 	Public Employees Retirement Association under section 356.215 indicates that there is a 
196.23 	contribution sufficiency under paragraph (a) greater than one percent of covered payroll 
196.24 	and that the sufficiency has existed for at least two consecutive years, the coordinated 
196.25 	program employee and employer contribution rates must be decreased as determined 
196.26 	under paragraph (c) to a level such that the sufficiency is no greater than one percent of 
196.27 	covered payroll based on the most recent actuarial valuation; or
196.28 	(2) if the regular actuarial valuation of the general employees retirement plan of the 
196.29 	Public Employees Retirement Association under section 356.215 indicates that there is a 
196.30 	contribution deficiency equal to or greater than 0.5 percent of covered payroll and that the 
196.31 	deficiency has existed for at least two consecutive years, the coordinated program employee 
196.32 	and employer contribution rates must be increased as determined under paragraph (d) to a 
196.33 	level such that no deficiency exists based on the most recent actuarial valuation.
196.34 	(c) If the actuarially required contribution of the general employees retirement plan is 
196.35 	less than the total support provided by the combined employee and employer contribution 
196.36 	rates under subdivisions 2, 3, and 3a, by more than one percent of covered payroll, 
197.1 	the general employees retirement plan coordinated program employee and employer 
197.2 	contribution rates under subdivisions 2 and 3 must be decreased incrementally over one or 
197.3 	more years by no more than 0.25 percent of pay each for employee and employer matching 
197.4 	contribution rates to a level such that there remains a contribution sufficiency of at least one 
197.5 	percent of covered payroll. No contribution rate decrease may be made until at least two 
197.6 	years have elapsed since any adjustment under this subdivision has been fully implemented.
197.7 	(d) If the actuarially required contribution exceeds the total support provided by the 
197.8 	combined employee and employer contribution rates under subdivisions 2, 3, and 3a, 
197.9 	the employee and matching employer contribution rates must be increased equally to 
197.10 	eliminate that contribution deficiency. If the contribution deficiency is:
197.11 	(1) less than two percent, the incremental increase may be up to 0.25 percent for the 
197.12 	general employees retirement plan employee and matching employer contribution rates;
197.13 	(2) greater than 1.99 percent and less than 4.01 percent, the incremental increase 
197.14 	may be up to 0.5 percent for the employee and matching employer contribution rates; or
197.15 	(3) greater than four percent, the incremental increase may be up to 0.75 percent for 
197.16 	the employee and matching employer contribution.
197.17 	(e) The general employees retirement plan contribution sufficiency or deficiency 
197.18 	determination under paragraphs (a) to (d) must be made without the inclusion ofincluding 
197.19 	the contributions to, the funded condition of, or the actuarial funding requirements of the 
197.20 	MERF division credited under section 353.27, subdivision 3c, and state aid under section 
197.21 	353.505.
197.22 	(f) Any recommended adjustment to the contribution rates must be reported to 
197.23 	the chair and the executive director of the Legislative Commission on Pensions and 
197.24 	Retirement by January 15 following the receipt of the most recent annual actuarial 
197.25 	valuation prepared under section 356.215. If the Legislative Commission on Pensions 
197.26 	and Retirement does not recommend against the rate change or does not recommend 
197.27 	a modification in the rate change, the recommended adjustment becomes effective for 
197.28 	any salary paid on or after the January 1 next following the legislative session in which 
197.29 	the Legislative Commission on Pensions and Retirement did not take any action to 
197.30 	disapprove or modify the Public Employees Retirement Association Board of Trustees' 
197.31 	recommendation to adjust the employee and employer rates.
197.32 	(g) A contribution sufficiency of up to one percent of covered payroll must be held in 
197.33 	reserve to be used to offset any future actuarially required contributions that are more than 
197.34 	the total combined employee and employer contributions under subdivisions 2, 3, and 3a.
197.35 	(h) Before any reduction in contributions to eliminate a sufficiency in excess of one 
197.36 	percent of covered pay may be recommended, the executive director must review any 
198.1 	need for a change in actuarial assumptions, as recommended by the actuary retained under 
198.2 	section 356.214 in the most recent experience study of the general employees retirement 
198.3 	plan prepared under section 356.215 and the standards for actuarial work promulgated by 
198.4 	the Legislative Commission on Pensions and Retirement that may result in an increase 
198.5 	in the actuarially required contribution and must report to the Legislative Commission 
198.6 	on Pensions and Retirement any recommendation by the board to use the sufficiency 
198.7 	exceeding one percent of covered payroll to offset the impact of an actuarial assumption 
198.8 	change recommended by the actuary retained under section 356.214, subdivision 1, and 
198.9 	reviewed by the actuary retained by the commission under section 356.214, subdivision 4.
198.10 	(i) No contribution sufficiency in excess of one percent of covered pay may be 
198.11 	proposed to be used to increase benefits, and no benefit increase may be proposed that 
198.12 	would initiate an automatic adjustment to increase contributions under this subdivision. 
198.13 	Any proposed benefit improvement must include a recommendation, prepared by the 
198.14 	actuary retained under section 356.214, subdivision 1, and reviewed by the actuary 
198.15 	retained by the Legislative Commission on Pensions and Retirement as provided under 
198.16 	section 356.214, subdivision 4, on how the benefit modification will be funded.

198.17 	Sec. 9. Minnesota Statutes 2014, section 353.27, is amended by adding a subdivision 
198.18 	to read:
198.19 		Subd. 3c.Former MERF members; member and employer contributions.
 198.20 	(a) For the period July 1, 2015, through December 31, 2031, the member contributions 
198.21 	for former members of the Minneapolis Employees Retirement Fund and by the former 
198.22 	Minneapolis Employees Retirement Fund-covered employing units are governed by this 
198.23 	subdivision.
198.24 	(b) The member contribution for a public employee who was a member of the 
198.25 	former Minneapolis Employees Retirement Fund on June 29, 2010, is 9.75 percent of the 
198.26 	salary of the employee.
198.27 	(c) The employer regular contribution with respect to a public employee who was 
198.28 	a member of the former Minneapolis Employees Retirement Fund on June 29, 2010, is 
198.29 	9.75 percent of the salary of the employee.
198.30 	(d) The employer additional contribution for any public employees who were 
198.31 	members of the former Minneapolis Employees Retirement Fund on June 29, 2010, is 
198.32 	2.68 percent of the salary of each applicable employee plus an annual amount equal to 
198.33 	the employing unit's share of $3,900,000 that was paid or was payable during calendar 
198.34 	year 2014.
199.1 	(e) For the period July 1, 2015, through December 31, 2031, the employer 
199.2 	supplemental contribution is the employing unit's share of $21,000,000.
199.3 	(f) Each employing unit's share under paragraph (e) is the amount determined from 
199.4 	an allocation between each employing unit in the portion equal to the unit's employer 
199.5 	supplemental contribution paid or payable under Minnesota Statutes 2012, section 353.50, 
199.6 	during calendar year 2014.
199.7 	(g) The employer supplemental contribution amount under paragraph (e) for 
199.8 	calendar year 2015 must be invoiced by the executive director of the Public Employees 
199.9 	Retirement Association by July 1, 2015. The calendar year 2015 payment is payable in a 
199.10 	single amount on or before September 30, 2015. For subsequent calendar years, the 
199.11 	employer supplemental contribution under paragraph (e) must be invoiced on January 31 
199.12 	of each year and is payable in two parts, with the first half payable on or before July 31 
199.13 	and with the second half payable on or before December 15. Late payments are payable 
199.14 	with compound interest at the rate of 0.71 percent per month for each month or portion of 
199.15 	a month that has elapsed after the due date.
199.16 	(h) The employer additional contribution under paragraph (d) and the employer 
199.17 	supplemental contribution under paragraph (e) terminate on December 31, 2031.

199.18 	Sec. 10. Minnesota Statutes 2014, section 353.34, subdivision 1, is amended to read:
199.19 		Subdivision 1.Refund or deferred annuity. (a) A former member is entitled to 
199.20 	either a refund of accumulated employee deductions under subdivision 2, or to a deferred 
199.21 	annuity under subdivision 3. Application for a refund may not be made before the date of 
199.22 	termination of public service. A refund must be paid within 120 days following receipt 
199.23 	of the application unless the applicant has again become a public employee required 
199.24 	to be covered by the association.
199.25 	(b) If an individual was placed on layoff under section 353.01, subdivision 12 or 12c, 
199.26 	a refund is not payable before termination of service under section 353.01, subdivision 11a.
199.27 	(c) An individual who terminates public service covered by the Public Employees 
199.28 	Retirement Association general employees retirement plan, the MERF division except 
199.29 	members of the former Minneapolis Employees Retirement Fund under section 353.01, 
199.30 	subdivision 2b, paragraph (d), the Public Employees Retirement Association police 
199.31 	and fire retirement plan, or the public employees local government correctional service 
199.32 	retirement plan, and who is employed by a different employer and who becomes an 
199.33 	active member covered by one of the other two plans, may receive a refund of employee 
199.34 	contributions plus annual compound interest from the plan from which the member 
199.35 	terminated service at the applicable rate specified in subdivision 2.
200.1 	(d) Refunds payable to members of the former Minneapolis Employees Retirement 
200.2 	Fund under section 353.01, subdivision 2a, paragraph (d), are governed by Minnesota 
200.3 	Statutes 2008, chapter 422A.

200.4 	Sec. 11. Minnesota Statutes 2014, section 353.37, subdivision 1, is amended to read:
200.5 		Subdivision 1.Salary maximums. (a) The annuity of a person otherwise eligible 
200.6 	for an annuity from the general employees retirement plan of the Public Employees 
200.7 	Retirement Association, the public employees police and fire retirement plan, or the local 
200.8 	government correctional employees retirement plan must be suspended under subdivision 
200.9 	2 or reduced under subdivision 3, whichever results in the higher annual annuity amount, if 
200.10 	the person reenters public service as a nonelective employee of a governmental subdivision 
200.11 	in a position covered by this chapter or returns to work as an employee of a labor 
200.12 	organization that represents public employees who are association members under this 
200.13 	chapter and salary for the reemployment service exceeds the annual maximum earnings 
200.14 	allowable for that age for the continued receipt of full benefit amounts monthly under the 
200.15 	federal Old Age, Survivors and Disability Insurance Program as set by the secretary of 
200.16 	health and human services under United States Code, title 42, section 403, in any calendar 
200.17 	year. If the person has not yet reached the minimum age for the receipt of Social Security 
200.18 	benefits, the maximum salary for the person is equal to the annual maximum earnings 
200.19 	allowable for the minimum age for the receipt of Social Security benefits.
200.20 	(b) The provisions of paragraph (a) do not apply to the members of the general 
200.21 	employees plan of the Public Employees Retirement Association who were former 
200.22 	members of MERF division.

200.23 	Sec. 12. Minnesota Statutes 2014, section 353.46, subdivision 2, is amended to read:
200.24 		Subd. 2.Rights of deferred annuitant. (a) The entitlement of a deferred annuitant 
200.25 	or other former member of the general employees retirement plan of the Public Employees 
200.26 	Retirement Association, the Minneapolis Employees Retirement Fund division, the 
200.27 	public employees police and fire retirement plan, or the local government correctional 
200.28 	employees retirement plan to receive an annuity under the law in effect at the time the 
200.29 	person terminated public service is herein preserved. The provisions of section 353.71, 
200.30 	subdivision 2, as amended by Laws 1973, chapter 753, apply to a deferred annuitant or 
200.31 	other former member who first begins receiving an annuity after July 1, 1973.
200.32 	(b) The entitlement of a deferred annuitant or former member of the Minneapolis 
200.33 	Employees Retirement Fund, upon merger with the general employees retirement plan 
201.1 	of the Public Employees Retirement Association, continues under the provisions of 
201.2 	Minnesota Statutes 2008, section 422A.16.

201.3 	Sec. 13. Minnesota Statutes 2014, section 353.46, subdivision 6, is amended to read:
201.4 		Subd. 6.Computation of benefits for certain coordinated members. Any 
201.5 	coordinated member of the general employees retirement plan of the Public Employees 
201.6 	Retirement Association who, before July 1, 1979, was a member of the former coordinated 
201.7 	program of the former Minneapolis Municipal Employees Retirement Fund and who, 
201.8 	before July 1, 1978, was a member of the basic program of the Minneapolis Municipal 
201.9 	Employees Retirement Fund is entitled to receive a retirement annuity when otherwise 
201.10 	qualified, the calculation of which must utilize the formula accrual rates specified in 
201.11 	Minnesota Statutes 2008, section 422A.15, subdivision 1, for that portion of credited 
201.12 	service which was rendered before July 1, 1978, and the formula accrual rates specified 
201.13 	in section 353.29, subdivision 3, for the remainder of credited service, both applied to 
201.14 	the average salary as specified in section 353.01, subdivision 17a. The formula accrual 
201.15 	rates to be used in calculating the retirement annuity must recognize the service after July 
201.16 	1, 1978, as a member of the former coordinated program of the former Minneapolis 
201.17 	Municipal Employees Retirement Fund and after July 1, 1979, as a member of the 
201.18 	general employees retirement plan of the Public Employees Retirement Association as a 
201.19 	continuation of service rendered before July 1, 1978. The annuity amount attributable 
201.20 	to service as a member of the basic program of the former Minneapolis Municipal 
201.21 	Employees Retirement Fund is payable from the MERF division and the annuity amount 
201.22 	attributable to all other service is payable from the general employees retirement fund of 
201.23 	the Public Employees Retirement Association.

201.24 	Sec. 14. Minnesota Statutes 2014, section 353.50, subdivision 6, is amended to read:
201.25 		Subd. 6.Benefits for former MERF division members. (a) Retired, disabled, 
201.26 	deferred, and inactive member benefits. The annuities and benefits of, or attributable to, 
201.27 	retired, disabled, deferred, or inactive Minneapolis Employees Retirement Fund members 
201.28 	with that status as of June 30, 2010 of the former MERF division, as calculated under 
201.29 	Minnesota Statutes 2008, sections 422A.11; 422A.12; 422A.13; 422A.14; 422A.15; 
201.30 	422A.151; 422A.155; 422A.156; 422A.16; 422A.17; 422A.18; 422A.19; 422A.20; and 
201.31 	422A.23, continue in force and are payable from the general employees retirement plan.
201.32 	(b) Benefits; benefit eligibility for June 30, 2010, active members. Persons who 
201.33 	were active members ofcovered by the former Minneapolis Employees Retirement 
201.34 	FundMERF division on June 30, 2010 December 31, 2014, upon satisfying eligibility 
202.1 	requirements stated in the applicable sections of Minnesota Statutes 2008 specified in 
202.2 	paragraph (a), are entitled to annuities or benefits specified in those sections. Eligibility 
202.3 	for a formula retirement annuity includes the requirement in Minnesota Statutes 2008, 
202.4 	sections 422A.13 and 422A.16, that the terminating member has attained the normal 
202.5 	retirement age, which is age 60 if the person has at least ten years of service credit, or any 
202.6 	age if the person has 30 or more years of service credit.
202.7 	(c) Postretirement adjustments. After December 31, 2010 2014, annuities and 
202.8 	benefits fromfor former members of the former MERF division are eligible for annual 
202.9 	automatic postretirement adjustments solely under the applicable portions of section 
202.10 	356.415.

202.11 	Sec. 15. Minnesota Statutes 2014, section 353.505, is amended to read:
202.12 	353.505 STATE CONTRIBUTIONS; FORMER MERF DIVISION.
202.13 	(a) Subject to the limitation in paragraph (c), The state shall pay to the MERF 
202.14 	division account of the Public Employees Retirement Association with respect to the 
202.15 	former Minneapolis Employees Retirement Fund annually an amount equal to the amount 
202.16 	calculated under paragraph (b).
202.17 	(b) The payment amount is an amount equal to the financial requirements of the 
202.18 	MERF division of the Public Employees Retirement Association reported in the actuarial 
202.19 	valuation of the general employees retirement plan of the Public Employees Retirement 
202.20 	Association prepared by the actuary retained under section 356.214 consistent with section 
202.21 	356.215 for the most recent year but based on a target date for full amortization of the 
202.22 	unfunded actuarial accrued liabilities by June 30, 2031, less the amount of employee 
202.23 	contributions required under section 353.50, subdivision 7, paragraph (b), and the amount 
202.24 	of employer contributions required under section 353.50, subdivision 7, paragraphs (c) 
202.25 	and (d). Payments must be made September 15 annually.
202.26 	(c) The annual state contribution under this subdivision may not exceed $9,000,000, 
202.27 	plus the cost of the annual supplemental benefit determined under Minnesota Statutes 
202.28 	2008, section 356.43, through June 30, 2012, and may not exceed $9,000,000, plus the 
202.29 	cost of the annual supplemental benefit determined under Minnesota Statutes 2008, section 
202.30 	356.43, plus $13,750,000 on September 15, 2011, $13,750,000 on September 15, 2012, 
202.31 	and $15,000,000 on September 15, 2013, and annually thereafter.
202.32 	(d) Annually and after June 30, 2012, if the amount determined under paragraph (b) 
202.33 	exceeds the applicable maximum amount specified in paragraph (c), the excess must be 
202.34 	allocated to and paid to the fund by the employers identified in Minnesota Statutes 2008, 
202.35 	section 422A.101, subdivisions 1a, 2, and 2a. Each employer's share of the excess is 
203.1 	proportionate to the employer's share of the fund's unfunded actuarial accrued liability 
203.2 	as disclosed in the annual actuarial valuation prepared by the actuary retained under 
203.3 	section 356.214 compared to the total unfunded actuarial accrued liability as of July 1, 
203.4 	2009, attributed to all employers identified in Minnesota Statutes 2008, section 422A.101, 
203.5 	subdivisions 1a and 2, other than units of metropolitan government. Payments must be 
203.6 	made as set forth in paragraph (b).
203.7 	(a) Annually and after June 30, 2015, the state shall pay to the general employees 
203.8 	retirement plan of the Public Employees Retirement Association, with respect to the 
203.9 	former MERF division, $16,000,000. Payments must be made September 15 annually.
203.10 	(e)(b) State contributions under this section end on September 15, 2031, or 
203.11 	on.September 1 following the first date on which the current assets of the MERF 
203.12 	division of the Public Employees Retirement Association equal or exceed the actuarial 
203.13 	accrued liability of the MERF division of the Public Employees Retirement Association, 
203.14 	whichever occurs earlier.

203.15 	Sec. 16. Minnesota Statutes 2014, section 355.01, subdivision 3j, is amended to read:
203.16 		Subd. 3j.Public employee. "Public employee" means an officer or an employee of 
203.17 	a local governmental subdivision of the state who performs services in a position covered 
203.18 	by the Public Employees Retirement Association established under chapter 353. The term 
203.19 	does not include any person who was a member of the former Minneapolis Employees 
203.20 	Retirement Fund on June 29, 2010, while the person is employed in a position that was 
203.21 	transferred to the Public Employees Retirement Association.

203.22 	Sec. 17. Minnesota Statutes 2014, section 356.214, subdivision 1, is amended to read:
203.23 		Subdivision 1.Actuary retention. (a) The governing board or managing or 
203.24 	administrative official of each public pension plan and retirement fund or plan enumerated 
203.25 	in paragraph (b) shall contract with an established actuarial consulting firm to conduct 
203.26 	annual actuarial valuations and related services. The principal from the actuarial 
203.27 	consulting firm on the contract must be an approved actuary under section 356.215, 
203.28 	subdivision 1, paragraph (c).
203.29 	(b) Actuarial services must include the preparation of actuarial valuations and 
203.30 	related actuarial work for the following retirement plans:
203.31 	(1) the teachers retirement plan, Teachers Retirement Association;
203.32 	(2) the general state employees retirement plan, Minnesota State Retirement System;
203.33 	(3) the correctional employees retirement plan, Minnesota State Retirement System;
203.34 	(4) the State Patrol retirement plan, Minnesota State Retirement System;
204.1 	(5) the judges retirement plan, Minnesota State Retirement System;
204.2 	(6) the general employees retirement plan, Public Employees Retirement 
204.3 	Association, including the MERF division;
204.4 	(7) the public employees police and fire plan, Public Employees Retirement 
204.5 	Association;
204.6 	(8) the St. Paul teachers retirement plan, St. Paul Teachers Retirement Fund 
204.7 	Association;
204.8 	(9) the legislators retirement plan, Minnesota State Retirement System; and
204.9 	(10) the local government correctional service retirement plan, Public Employees 
204.10 	Retirement Association.
204.11 	(c) The actuarial valuation for the legislators retirement plan must include a separate 
204.12 	calculation of total plan actuarial accrued liabilities due to constitutional officer coverage 
204.13 	under section 3A.17.
204.14 	(d) The contracts must require completion of the annual actuarial valuation 
204.15 	calculations on a fiscal year basis, with the contents of the actuarial valuation calculations 
204.16 	as specified in section 356.215, and in conformity with the standards for actuarial work 
204.17 	adopted by the Legislative Commission on Pensions and Retirement.
204.18 	The contracts must require completion of annual experience data collection and 
204.19 	processing and a quadrennial published experience study for the plans listed in paragraph 
204.20 	(b), clauses (1), (2), and (6), as provided for in the standards for actuarial work adopted by 
204.21 	the commission. The experience data collection, processing, and analysis must evaluate 
204.22 	the following:
204.23 	(1) individual salary progression;
204.24 	(2) the rate of return on investments based on the current asset value;
204.25 	(3) payroll growth;
204.26 	(4) mortality;
204.27 	(5) retirement age;
204.28 	(6) withdrawal; and
204.29 	(7) disablement.
204.30 	(e) The actuary shall annually prepare a report to the governing or managing board 
204.31 	or administrative official and the legislature, summarizing the results of the actuarial 
204.32 	valuation calculations. The actuary shall include with the report any recommendations 
204.33 	concerning the appropriateness of the support rates to achieve proper funding of 
204.34 	the retirement plans by the required funding dates. The actuary shall, as part of the 
204.35 	quadrennial experience study, include recommendations on the appropriateness of the 
204.36 	actuarial valuation assumptions required for evaluation in the study.
205.1 	(f) If the actuarial gain and loss analysis in the actuarial valuation calculations 
205.2 	indicates a persistent pattern of sizable gains or losses, the governing or managing board 
205.3 	or administrative official shall direct the actuary to prepare a special experience study for 
205.4 	a plan listed in paragraph (b), clause (3), (4), (5), (7), (8), (9), or (10), in the manner 
205.5 	provided for in the standards for actuarial work adopted by the commission.

205.6 	Sec. 18. Minnesota Statutes 2014, section 356.215, subdivision 11, is amended to read:
205.7 		Subd. 11.Amortization contributions. (a) In addition to the exhibit indicating 
205.8 	the level normal cost, the actuarial valuation of the retirement plan must contain an 
205.9 	exhibit for financial reporting purposes indicating the additional annual contribution 
205.10 	sufficient to amortize the unfunded actuarial accrued liability and must contain an exhibit 
205.11 	for contribution determination purposes indicating the additional contribution sufficient 
205.12 	to amortize the unfunded actuarial accrued liability. For the retirement plans listed in 
205.13 	subdivision 8, paragraph (c), but excluding the MERF division of the Public Employees 
205.14 	Retirement Association and the legislators retirement plan, the additional contribution 
205.15 	must be calculated on a level percentage of covered payroll basis by the established 
205.16 	date for full funding in effect when the valuation is prepared, assuming annual payroll 
205.17 	growth at the applicable percentage rate set forth in subdivision 8, paragraph (d). For all 
205.18 	other retirement plans and for the MERF division of the Public Employees Retirement 
205.19 	Association and the legislators retirement plan, the additional annual contribution must be 
205.20 	calculated on a level annual dollar amount basis.
205.21 	(b) For any retirement plan other than a retirement plan governed by paragraph (d), 
205.22 	(e), (f), (g), (h), (i), or (j), or (k), if there has not been a change in the actuarial assumptions 
205.23 	used for calculating the actuarial accrued liability of the fund, a change in the benefit 
205.24 	plan governing annuities and benefits payable from the fund, a change in the actuarial 
205.25 	cost method used in calculating the actuarial accrued liability of all or a portion of the 
205.26 	fund, or a combination of the three, which change or changes by itself or by themselves 
205.27 	without inclusion of any other items of increase or decrease produce a net increase in the 
205.28 	unfunded actuarial accrued liability of the fund, the established date for full funding is the 
205.29 	first actuarial valuation date occurring after June 1, 2020.
205.30 	(c) For any retirement plan, if there has been a change in any or all of the actuarial 
205.31 	assumptions used for calculating the actuarial accrued liability of the fund, a change in 
205.32 	the benefit plan governing annuities and benefits payable from the fund, a change in the 
205.33 	actuarial cost method used in calculating the actuarial accrued liability of all or a portion 
205.34 	of the fund, or a combination of the three, and the change or changes, by itself or by 
205.35 	themselves and without inclusion of any other items of increase or decrease, produce a net 
206.1 	increase in the unfunded actuarial accrued liability in the fund, the established date for full 
206.2 	funding must be determined using the following procedure:
206.3 	(i) the unfunded actuarial accrued liability of the fund must be determined in 
206.4 	accordance with the plan provisions governing annuities and retirement benefits and the 
206.5 	actuarial assumptions in effect before an applicable change;
206.6 	(ii) the level annual dollar contribution or level percentage, whichever is applicable, 
206.7 	needed to amortize the unfunded actuarial accrued liability amount determined under item 
206.8 	(i) by the established date for full funding in effect before the change must be calculated 
206.9 	using the interest assumption specified in subdivision 8 in effect before the change;
206.10 	(iii) the unfunded actuarial accrued liability of the fund must be determined in 
206.11 	accordance with any new plan provisions governing annuities and benefits payable from 
206.12 	the fund and any new actuarial assumptions and the remaining plan provisions governing 
206.13 	annuities and benefits payable from the fund and actuarial assumptions in effect before 
206.14 	the change;
206.15 	(iv) the level annual dollar contribution or level percentage, whichever is applicable, 
206.16 	needed to amortize the difference between the unfunded actuarial accrued liability amount 
206.17 	calculated under item (i) and the unfunded actuarial accrued liability amount calculated 
206.18 	under item (iii) over a period of 30 years from the end of the plan year in which the 
206.19 	applicable change is effective must be calculated using the applicable interest assumption 
206.20 	specified in subdivision 8 in effect after any applicable change;
206.21 	(v) the level annual dollar or level percentage amortization contribution under item 
206.22 	(iv) must be added to the level annual dollar amortization contribution or level percentage 
206.23 	calculated under item (ii);
206.24 	(vi) the period in which the unfunded actuarial accrued liability amount determined 
206.25 	in item (iii) is amortized by the total level annual dollar or level percentage amortization 
206.26 	contribution computed under item (v) must be calculated using the interest assumption 
206.27 	specified in subdivision 8 in effect after any applicable change, rounded to the nearest 
206.28 	integral number of years, but not to exceed 30 years from the end of the plan year in which 
206.29 	the determination of the established date for full funding using the procedure set forth in this 
206.30 	clause is made and not to be less than the period of years beginning in the plan year in which 
206.31 	the determination of the established date for full funding using the procedure set forth in 
206.32 	this clause is made and ending by the date for full funding in effect before the change; and
206.33 	(vii) the period determined under item (vi) must be added to the date as of which 
206.34 	the actuarial valuation was prepared and the date obtained is the new established date 
206.35 	for full funding.
207.1 	(d) For the MERF division of the Public Employees Retirement Association, the 
207.2 	established date for full funding is June 30, 2031.
207.3 	(e)(d) For the general employees retirement plan of the Public Employees 
207.4 	Retirement Association, the established date for full funding is June 30, 2031.
207.5 	(f)(e) For the Teachers Retirement Association, the established date for full funding 
207.6 	is June 30, 2037.
207.7 	(g)(f) For the correctional state employees retirement plan of the Minnesota State 
207.8 	Retirement System, the established date for full funding is June 30, 2038.
207.9 	(h)(g) For the judges retirement plan, the established date for full funding is June 
207.10 	30, 2038.
207.11 	(i)(h) For the public employees police and fire retirement plan, the established date 
207.12 	for full funding is June 30, 2038.
207.13 	(j)(i) For the St. Paul Teachers Retirement Fund Association, the established date 
207.14 	for full funding is June 30, 2042. In addition to other requirements of this chapter, the 
207.15 	annual actuarial valuation must contain an exhibit indicating the funded ratio and the 
207.16 	deficiency or sufficiency in annual contributions when comparing liabilities to the market 
207.17 	value of the assets of the fund as of the close of the most recent fiscal year.
207.18 	(k)(j) For the general state employees retirement plan of the Minnesota State 
207.19 	Retirement System, the established date for full funding is June 30, 2040.
207.20 	(l)(k) For the retirement plans for which the annual actuarial valuation indicates 
207.21 	an excess of valuation assets over the actuarial accrued liability, the valuation assets in 
207.22 	excess of the actuarial accrued liability must be recognized as a reduction in the current 
207.23 	contribution requirements by an amount equal to the amortization of the excess expressed 
207.24 	as a level percentage of pay over a 30-year period beginning anew with each annual 
207.25 	actuarial valuation of the plan.

207.26 	Sec. 19. Minnesota Statutes 2014, section 356.30, subdivision 3, is amended to read:
207.27 		Subd. 3.Covered plans. This section applies to the following retirement plans:
207.28 	(1) the general state employees retirement plan of the Minnesota State Retirement 
207.29 	System, established under chapter 352;
207.30 	(2) the correctional state employees retirement plan of the Minnesota State 
207.31 	Retirement System, established under chapter 352;
207.32 	(3) the unclassified employees retirement program, established under chapter 352D;
207.33 	(4) the State Patrol retirement plan, established under chapter 352B;
207.34 	(5) the legislators retirement plan, established under chapter 3A, including 
207.35 	constitutional officers as specified in that chapter;
208.1 	(6) the general employees retirement plan of the Public Employees Retirement 
208.2 	Association, established under chapter 353, including the MERF division of the Public 
208.3 	Employees Retirement Association;
208.4 	(7) the public employees police and fire retirement plan of the Public Employees 
208.5 	Retirement Association, established under chapter 353;
208.6 	(8) the local government correctional service retirement plan of the Public 
208.7 	Employees Retirement Association, established under chapter 353E;
208.8 	(9) the Teachers Retirement Association, established under chapter 354;
208.9 	(10) the St. Paul Teachers Retirement Fund Association, established under chapter 
208.10 	354A; and
208.11 	(11) the judges retirement fund, established by chapter 490.

208.12 	Sec. 20. Minnesota Statutes 2014, section 356.302, subdivision 7, is amended to read:
208.13 		Subd. 7.Covered retirement plans. This section applies to the following 
208.14 	retirement plans:
208.15 	(1) the general state employees retirement plan of the Minnesota State Retirement 
208.16 	System, established by chapter 352;
208.17 	(2) the unclassified state employees retirement program of the Minnesota State 
208.18 	Retirement System, established by chapter 352D;
208.19 	(3) the general employees retirement plan of the Public Employees Retirement 
208.20 	Association, established by chapter 353, including the MERF division of the Public 
208.21 	Employees Retirement Association;
208.22 	(4) the Teachers Retirement Association, established by chapter 354;
208.23 	(5) the St. Paul Teachers Retirement Fund Association, established by chapter 354A;
208.24 	(6) the state correctional employees retirement plan of the Minnesota State 
208.25 	Retirement System, established by chapter 352;
208.26 	(7) the State Patrol retirement plan, established by chapter 352B;
208.27 	(8) the public employees police and fire plan of the Public Employees Retirement 
208.28 	Association, established by chapter 353;
208.29 	(9) the local government correctional service retirement plan of the Public 
208.30 	Employees Retirement Association, established by chapter 353E; and
208.31 	(10) the judges retirement plan, established by chapter 490.

208.32 	Sec. 21. Minnesota Statutes 2014, section 356.303, subdivision 4, is amended to read:
208.33 		Subd. 4.Covered retirement plans. This section applies to the following 
208.34 	retirement plans:
209.1 	(1) the legislators retirement plan, established by chapter 3A;
209.2 	(2) the general state employees retirement plan of the Minnesota State Retirement 
209.3 	System, established by chapter 352;
209.4 	(3) the correctional state employees retirement plan of the Minnesota State 
209.5 	Retirement System, established by chapter 352;
209.6 	(4) the State Patrol retirement plan, established by chapter 352B;
209.7 	(5) the elective state officers retirement plan, established by chapter 352C;
209.8 	(6) the unclassified state employees retirement program, established by chapter 352D;
209.9 	(7) the general employees retirement plan of the Public Employees Retirement 
209.10 	Association, established by chapter 353, including the MERF division of the Public 
209.11 	Employees Retirement Association;
209.12 	(8) the public employees police and fire plan of the Public Employees Retirement 
209.13 	Association, established by chapter 353;
209.14 	(9) the local government correctional service retirement plan of the Public 
209.15 	Employees Retirement Association, established by chapter 353E;
209.16 	(10) the Teachers Retirement Association, established by chapter 354;
209.17 	(11) the St. Paul Teachers Retirement Fund Association, established by chapter 
209.18 	354A; and
209.19 	(12) the judges retirement fund, established by chapter 490.

209.20 	Sec. 22. Minnesota Statutes 2014, section 356.32, subdivision 2, is amended to read:
209.21 		Subd. 2.Covered retirement plans. The provisions of this section apply to the 
209.22 	following retirement plans:
209.23 	(1) the general state employees retirement plan of the Minnesota State Retirement 
209.24 	System, established under chapter 352;
209.25 	(2) the correctional state employees retirement plan of the Minnesota State 
209.26 	Retirement System, established under chapter 352;
209.27 	(3) the State Patrol retirement plan, established under chapter 352B;
209.28 	(4) the general employees retirement plan of the Public Employees Retirement 
209.29 	Association, established under chapter 353, including the MERF division of the Public 
209.30 	Employees Retirement Association;
209.31 	(5) the public employees police and fire plan of the Public Employees Retirement 
209.32 	Association, established under chapter 353;
209.33 	(6) the Teachers Retirement Association, established under chapter 354; and
209.34 	(7) the St. Paul Teachers Retirement Fund Association, established under chapter 
209.35 	354A.

210.1 	Sec. 23. Minnesota Statutes 2014, section 356.401, subdivision 3, is amended to read:
210.2 		Subd. 3.Covered retirement plans. The provisions of this section apply to the 
210.3 	following retirement plans:
210.4 	(1) the legislators retirement plan, established by chapter 3A, including constitutional 
210.5 	officers as specified in that chapter;
210.6 	(2) the general state employees retirement plan of the Minnesota State Retirement 
210.7 	System, established by chapter 352;
210.8 	(3) the correctional state employees retirement plan of the Minnesota State 
210.9 	Retirement System, established by chapter 352;
210.10 	(4) the State Patrol retirement plan, established by chapter 352B;
210.11 	(5) the unclassified state employees retirement program, established by chapter 352D;
210.12 	(6) the general employees retirement plan of the Public Employees Retirement 
210.13 	Association, established by chapter 353, including the MERF division of the Public 
210.14 	Employees Retirement Association;
210.15 	(7) the public employees police and fire plan of the Public Employees Retirement 
210.16 	Association, established by chapter 353;
210.17 	(8) the public employees defined contribution plan, established by chapter 353D;
210.18 	(9) the local government correctional service retirement plan of the Public 
210.19 	Employees Retirement Association, established by chapter 353E;
210.20 	(10) the voluntary statewide lump-sum volunteer firefighter retirement plan, 
210.21 	established by chapter 353G;
210.22 	(11) the Teachers Retirement Association, established by chapter 354;
210.23 	(12) the St. Paul Teachers Retirement Fund Association, established by chapter 354A;
210.24 	(13) the individual retirement account plan, established by chapter 354B;
210.25 	(14) the higher education supplemental retirement plan, established by chapter 
210.26 	354C; and
210.27 	(15) the judges retirement fund, established by chapter 490.

210.28 	Sec. 24. Minnesota Statutes 2014, section 356.407, subdivision 2, is amended to read:
210.29 		Subd. 2.Covered funds. The provisions of this section apply to the following 
210.30 	retirement funds:
210.31 	(1) the general employees retirement plan of the Public Employees Retirement 
210.32 	Association established under chapter 353, including the MERF division of the Public 
210.33 	Employees Retirement Association;
210.34 	(2) the public employees police and fire plan of the Public Employees Retirement 
210.35 	Association established under chapter 353;
211.1 	(3) the State Patrol retirement plan established under chapter 352B;
211.2 	(4) the legislators retirement plan established under chapter 3A;
211.3 	(5) the elective state officers retirement plan established under chapter 352C; and
211.4 	(6) the Teachers Retirement Association established under chapter 354.

211.5 	Sec. 25. Minnesota Statutes 2014, section 356.415, subdivision 2, is amended to read:
211.6 		Subd. 2.Covered retirement plans. The provisions of this section apply to the 
211.7 	following retirement plans:
211.8 	(1) the legislators retirement plan established under chapter 3A, including 
211.9 	constitutional officers as specified in that chapter;
211.10 	(2) the correctional state employees retirement plan of the Minnesota State 
211.11 	Retirement System established under chapter 352;
211.12 	(3) the general state employees retirement plan of the Minnesota State Retirement 
211.13 	System established under chapter 352;
211.14 	(4) the State Patrol retirement plan established under chapter 352B;
211.15 	(5) the general employees retirement plan of the Public Employees Retirement 
211.16 	Association established under chapter 353, including the MERF division of the Public 
211.17 	Employees Retirement Association;
211.18 	(6) the public employees police and fire retirement plan of the Public Employees 
211.19 	Retirement Association established under chapter 353;
211.20 	(7) the local government correctional employees retirement plan of the Public 
211.21 	Employees Retirement Association established under chapter 353E;
211.22 	(8) the teachers retirement plan established under chapter 354; and
211.23 	(9) the judges retirement plan established under chapter 490.

211.24 	Sec. 26. Minnesota Statutes 2014, section 356.461, subdivision 2, is amended to read:
211.25 		Subd. 2.Covered plans. This section applies to the following retirement plans:
211.26 	(1) the legislators retirement plan, established under chapter 3A, including 
211.27 	constitutional officers as specified in that chapter;
211.28 	(2) the correctional state employees retirement plan of the Minnesota State 
211.29 	Retirement System, established under chapter 352;
211.30 	(3) the general state employees retirement plan of the Minnesota State Retirement 
211.31 	System, established under chapter 352;
211.32 	(4) the State Patrol retirement plan, established under chapter 352B;
211.33 	(5) the unclassified state employees retirement program of the Minnesota State 
211.34 	Retirement System, established under chapter 352D;
212.1 	(6) the judges retirement plan, established under chapter 490;
212.2 	(7) the general employees retirement plan of the Public Employees Retirement 
212.3 	Association, established under chapter 353, including the MERF division of the Public 
212.4 	Employees Retirement Association;
212.5 	(8) the public employees police and fire retirement plan of the Public Employees 
212.6 	Retirement Association, established under chapter 353;
212.7 	(9) the local government correctional service retirement plan of the Public 
212.8 	Employees Retirement Association, established under chapter 353E; and
212.9 	(10) the Teachers Retirement Association, established under chapter 354.

212.10 	Sec. 27. Minnesota Statutes 2014, section 356.465, subdivision 3, is amended to read:
212.11 		Subd. 3.Covered retirement plans. The provisions of this section apply to the 
212.12 	following retirement plans:
212.13 	(1) the general state employees retirement plan of the Minnesota State Retirement 
212.14 	System established under chapter 352;
212.15 	(2) the correctional state employees retirement plan of the Minnesota State 
212.16 	Retirement System established under chapter 352;
212.17 	(3) the State Patrol retirement plan established under chapter 352B;
212.18 	(4) the legislators retirement plan established under chapter 3A;
212.19 	(5) the judges retirement plan established under chapter 490;
212.20 	(6) the general employees retirement plan of the Public Employees Retirement 
212.21 	Association established under chapter 353, including the MERF division of the Public 
212.22 	Employees Retirement Association;
212.23 	(7) the public employees police and fire plan of the Public Employees Retirement 
212.24 	Association established under chapter 353;
212.25 	(8) the teachers retirement plan established under chapter 354;
212.26 	(9) the St. Paul Teachers Retirement Fund Association established under chapter 
212.27 	354A; and
212.28 	(10) the local government correctional service retirement plan of the Public 
212.29 	Employees Retirement Association established under chapter 353E.

212.30 	Sec. 28. Minnesota Statutes 2014, section 480.181, subdivision 2, is amended to read:
212.31 		Subd. 2.Election to retain insurance and benefits; retirement. (a) Before a 
212.32 	person is transferred to state employment under this section, the person may elect to do 
212.33 	either or both of the following:
213.1 	(1) keep life insurance; hospital, medical, and dental insurance; and vacation and 
213.2 	sick leave benefits and accumulated time provided by the county instead of receiving 
213.3 	benefits from the state under the judicial branch personnel rules; or
213.4 	(2) remain a member of the general employees retirement plan of the Public 
213.5 	Employees Retirement Association or the MERF division of the Public Employees 
213.6 	Retirement Association instead of joining the Minnesota State Retirement System.
213.7 	Employees who make an election under clause (1) remain on the county payroll, 
213.8 	but the state shall reimburse the county on a quarterly basis for the salary and cost of the 
213.9 	benefits provided by the county. The state shall make the employer contribution on behalf 
213.10 	of employees who make an election under clause (2) to the general employees retirement 
213.11 	plan of the Public Employees Retirement Association or the employer contribution under 
213.12 	section 353.50 353.27, subdivision 7 3c, paragraphs (c) and (d), to the MERF division 
213.13 	general employees retirement fund of the Public Employees Retirement Association on 
213.14 	behalf of employees who make an election under clause (2) for any employees who were 
213.15 	members of the former Minneapolis Employees Retirement Fund on June 24, 2010.
213.16 	(b) An employee who makes an election under paragraph (a), clause (1), may revoke 
213.17 	the election, once, at any time, but if the employee revokes the election, the employee 
213.18 	cannot make another election. An employee who makes an election under paragraph (a), 
213.19 	clause (2), may revoke the election at any time within six months after the person becomes 
213.20 	a state employee. Once an employee revokes this election, the employee cannot make 
213.21 	another election.
213.22 	(c) The Supreme Court, after consultation with the Judicial Council, the 
213.23 	commissioner of management and budget, and the executive directors of the Public 
213.24 	Employees Retirement Association and the Minnesota State Retirement Association shall 
213.25 	adopt procedures for making elections under this section.
213.26 	(d) The Supreme Court shall notify all affected employees of the options available 
213.27 	under this section. The executive directors of the Public Employees Retirement 
213.28 	Association and the Minnesota State Retirement System shall provide counseling to 
213.29 	affected employees on the effect of making an election to remain a member of the Public 
213.30 	Employees Retirement Association.

213.31 	Sec. 29. MERF DIVISION MERGER INTO PERA-GENERAL.
 213.32 	The MERF division and division account are merged into the general employees 
213.33 	retirement plan and fund of the Public Employees Retirement Association as provided 
213.34 	under Minnesota Statutes 2014, section 353.50, subdivision 9, and no longer exist as 
213.35 	a component part of the association or of the general employees retirement plan. The 
214.1 	general employees retirement plan of the Public Employees Retirement Association is 
214.2 	the successor in interest of the former Minneapolis Employees Retirement Fund under 
214.3 	Minnesota Statutes 2014, section 353.50, subdivision 5. The beneficial title for the assets 
214.4 	of the former MERF division account is combined with the beneficial title for the assets of 
214.5 	the general employees retirement plan and is vested undivided in the benefit recipients of 
214.6 	the general employees retirement plan. The liabilities of the general employees retirement 
214.7 	fund include the liabilities under Minnesota Statutes 2014, section 353.50, subdivision 6.

214.8 	Sec. 30.  REPEALER.
 214.9 	Minnesota Statutes 2014, sections 353.01, subdivision 49; 353.27, subdivision 1a; 
214.10 	353.50, subdivisions 1, 2, 3, 4, 5, 7, 8, 9, 10; and 354.71, are repealed.

214.11 	Sec. 31. EFFECTIVE DATE.
 214.12 	Unless otherwise specified, this article is effective the day following final enactment.