1.1 	A bill for an act
1.2 	relating to retirement; benefit and contribution changes for Minnesota statewide 
1.3 	and major local public employee retirement plans; increasing contribution rates; 
1.4 	reducing certain postretirement adjustment increase rates; modifying investment 
1.5 	return assumptions; extending amortization target dates; reducing deferred annuities 
1.6 	augmentation; requiring a study on postretirement adjustments; making 
1.7 	administrative changes to the Minnesota State Retirement System, Teachers 
1.8 	Retirement Association, Public Employees Retirement Association, and St. Paul 
1.9 	Teachers Retirement Fund Association; clarifying refund repayment procedures; 
1.10 	modifying executive director credentials; clarifying service requirements; revising 
1.11 	appeal procedures; modifying service credit purchase procedures; establishing 
1.12 	new procedures for disability applications due to private disability insurance 
1.13 	requirements; clarifying disability benefit payment provisions; modifying annual 
1.14 	benefit limitations for federal tax code compliance; authorizing use of IRS 
1.15 	correction procedures; clarifying benefit offsets for certain refund payments; 
1.16 	clarifying police and fire plan coverage for certain Hennepin Healthcare System 
1.17 	supervisors; modifying various economic actuarial assumptions; authorizing the 
1.18 	transfer of assets and members from the voluntary statewide volunteer firefighter 
1.19 	retirement plan to a volunteer firefighter relief association; adopting 
1.20 	recommendations of the Volunteer Firefighter Relief Association Working Group; 
1.21 	increasing relief association lump-sum service pension maximums; lowering certain 
1.22 	vesting requirements for Eden Prairie Volunteer Firefighters Relief Association; 
1.23 	modifying the Brook Park volunteer firefighters service pension level; permitting 
1.24 	alternative allocation of fire state aid for city of Austin; establishing a fire state 
1.25 	aid work group; modifying various Department of Human Services and Department 
1.26 	of Corrections employment classifications eligible for correctional retirement 
1.27 	coverage; modifying the calculation of annuities under the Minnesota State 
1.28 	Retirement System unclassified program; revising augmentation  interest rates for 
1.29 	certain terminated privatized employees; adopting definition of the Hometown 
1.30 	Heroes Act related to public safety officer death benefits; allowing service credit 
1.31 	purchase and Rule of 90 eligibility for certain Minnesota Department of 
1.32 	Transportation employees; authorizing MnSCU employees to elect retroactive and 
1.33 	prospective TRA coverage; authorizing MnSCU employee to transfer past service 
1.34 	from IRAP to PERA; increasing maximum employer contribution to a supplemental 
1.35 	laborers pension fund; authorizing certain additional sources of retirement plan 
1.36 	funding; making technical and conforming changes; appropriating money;amending 
1.37 	Minnesota Statutes 2016, sections 3A.02, subdivision 4; 3A.03, subdivisions 2, 3; 
1.38 	16A.14, subdivision 2a; 352.01, subdivisions 2a, 13a; 352.017, subdivision 2; 
1.39 	352.03, subdivisions 5, 6; 352.04, subdivisions 2, 3, 8, 9; 352.113, subdivisions 
2.1 	2, 4, 14; 352.116, subdivision 1a; 352.22, subdivisions 2, 3, by adding subdivisions; 
2.2 	352.23; 352.27; 352.91, subdivisions 3f, 3g, by adding a subdivision; 352.92, 
2.3 	subdivisions 1, 2, by adding a subdivision; 352.955, subdivision 3; 352B.013, 
2.4 	subdivision 2; 352B.02, subdivisions 1a, 1c; 352B.08, by adding a subdivision; 
2.5 	352B.085; 352B.086; 352B.11, subdivision 4; 352D.02, subdivisions 1, 3; 352D.04, 
2.6 	subdivision 2; 352D.05, subdivision 4; 352D.06, subdivision 1; 352D.085, 
2.7 	subdivision 1; 352D.11, subdivision 2; 352D.12; 352F.04, subdivisions 1, 2, by 
2.8 	adding a subdivision; 353.01, subdivisions 2b, 10, 16, 43, 47; 353.012; 353.0162; 
2.9 	353.03, subdivision 3; 353.27, subdivisions 3c, 7a, 12, 12a, 12b; 353.28, subdivision 
2.10 	5; 353.29, subdivisions 4, 7; 353.30, subdivision 3c; 353.32, subdivisions 1, 4; 
2.11 	353.34, subdivision 2; 353.35, subdivision 1; 353.37, subdivision 1; 353.64, 
2.12 	subdivision 10; 353.65, subdivisions 2, 3, by adding a subdivision; 353F.02, 
2.13 	subdivision 5a; 353F.025, subdivision 2; 353F.04, subdivision 2; 353F.05; 
2.14 	353F.057; 353F.06; 353F.07; 353G.01, subdivision 9, by adding a subdivision; 
2.15 	353G.02, subdivision 6; 353G.03, subdivision 3; 353G.08, subdivision 3; 353G.11, 
2.16 	subdivision 1; 354.05, subdivision 2, by adding a subdivision; 354.06, subdivisions 
2.17 	2, 2a; 354.095; 354.42, subdivisions 2, 3; 354.436, subdivision 3; 354.44, 
2.18 	subdivisions 3, 6, 9; 354.45, by adding a subdivision; 354.46, subdivision 6; 354.48, 
2.19 	subdivision 1; 354.49, subdivision 2; 354.50, subdivision 2; 354.51, subdivision 
2.20 	5; 354.512; 354.52, subdivisions 4, 4d; 354.53, subdivision 5; 354.55, subdivision 
2.21 	11; 354.66, subdivision 2; 354.72, subdivision 1; 354A.011, subdivisions 3a, 29; 
2.22 	354A.093, subdivisions 4, 6; 354A.095; 354A.096; 354A.12, subdivisions 1, 1a, 
2.23 	2a, 3a, 3c, 7; 354A.29, subdivision 7; 354A.31, subdivisions 3, 7; 354A.34; 
2.24 	354A.35, subdivision 2; 354A.37, subdivisions 2, 3; 354A.38; 356.195, subdivision 
2.25 	2; 356.215, subdivisions 8, 9, 11; 356.24, subdivision 1; 356.30, subdivision 1; 
2.26 	356.32, subdivision 2; 356.415, subdivisions 1, 1a, 1b, 1c, 1d, 1e, 1f, by adding a 
2.27 	subdivision; 356.44; 356.47, subdivisions 1, 3; 356.50, subdivision 2; 356.551, 
2.28 	subdivision 2; 356.635, subdivision 10, by adding subdivisions; 356.96, 
2.29 	subdivisions 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13; 356A.06, subdivision 7; 423A.02, 
2.30 	subdivisions 3, 5; 424A.001, subdivisions 2, 3, 10, by adding a subdivision; 
2.31 	424A.002, subdivision 1; 424A.01, subdivisions 1, 5, 6, by adding subdivisions; 
2.32 	424A.015, subdivision 1, by adding a subdivision; 424A.016, subdivision 2; 
2.33 	424A.02, subdivisions 1, 3, 3a, 7; 424A.04, subdivision 1; 424A.07; 424A.091, 
2.34 	subdivision 3; 424A.094, subdivision 3; 424A.10, subdivision 1; 424B.20, 
2.35 	subdivision 4; 490.121, subdivisions 4, 25, 26; 490.1211; 490.124, subdivision 
2.36 	12; proposing coding for new law in Minnesota Statutes, chapters 353F; 353G; 
2.37 	356; 424A; repealing Minnesota Statutes 2016, sections 3A.12; 352.04, subdivision 
2.38 	11; 352.045; 352.72; 352B.30; 353.0161; 353.27, subdivision 3b; 353.34, 
2.39 	subdivision 6; 353.71, subdivision 1; 354.42, subdivisions 4a, 4b, 4c, 4d; 354.60; 
2.40 	354A.12, subdivision 2c; 354A.29, subdivisions 8, 9; 354A.39; 356.611, 
2.41 	subdivisions 3, 3a, 4, 5; 356.96, subdivisions 14, 15; 424A.02, subdivision 13.
2.42 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

2.43 	ARTICLE 1
2.44 	MINNESOTA STATE RETIREMENT SYSTEM BENEFIT AND CONTRIBUTION 
2.45 	CHANGES

2.46 	Section 1. Minnesota Statutes 2016, section 3A.02, subdivision 4, is amended to read:
2.47 		Subd. 4.Deferred annuities augmentation. (a) The deferred retirement allowance of 
2.48 	any former legislator must be computed as provided in subdivision 1 on the basis of allowable 
2.49 	service and augmented as provided herein.(b) The required reserves applicable to the deferred 
2.50 	retirement allowance, determined as of the date the benefit begins to accrue using an 
3.1 	appropriate mortality table and an interest assumption of six percent, must be augmented
3.2 	by interest compounded annually from the first of the month following the termination of 
3.3 	active service, or July 1, 1973, whichever is later, to the first day of the month in which the 
3.4 	allowance begins to accrue effective date of retirement, at the following annually 
3.5 	compounded rate or rates:
3.6 	(1) five percent until January 1, 1981;
3.7 	(2) three percent from January 1, 1981, or from the first day of the month following the 
3.8 	termination of active service, whichever is later, until January 1 of the year in which the 
3.9 	former legislator attains age 55 or until January 1, 2012, whichever is earlier;
3.10 	(3) five percent from the period end date under clause (2) until the effective date of 
3.11 	retirement or until January 1, 2012, whichever is earlier; and
3.12 	(4) two percent after December 31, 2011. from January 1, 2012, until December 31, 
3.13 	2017; and
3.14 	(5) after December 31, 2017, the deferred annuity must not be augmented.

3.15 	EFFECTIVE DATE. This section is effective July 1, 2017.

3.16 	Sec. 2. Minnesota Statutes 2016, section 352.116, subdivision 1a, is amended to read:
3.17 		Subd. 1a.Actuarial reduction for early retirement. This subdivision applies to a 
3.18 	person who has become at least 55 years old and first became a covered employee after 
3.19 	June 30, 1989, and to any other covered employee who has become at least 55 years old 
3.20 	and whose annuity is higher when calculated under section 352.115, subdivision 3, paragraph 
3.21 	(b), in conjunction with this subdivision than when calculated under section 352.115, 
3.22 	subdivision 3, paragraph (a), in conjunction with subdivision 1. A covered employee who 
3.23 	retires before the normal retirement age shall be paid the normal retirement annuity provided 
3.24 	in section 352.115, subdivisions 2 and 3, paragraph (b), reduced so thatas described in 
3.25 	clause (1) or (2), as applicable.
3.26 	(1) For covered employees who retire on or after July 1, 2018, the reduced annuity is 
3.27 	the actuarial equivalent of the annuity that would be payable to the employee if the employee 
3.28 	deferred receipt of the annuity until normal retirement age and the annuity amount were 
3.29 	augmented at anthe applicable annual rate of three percent, compounded annually, from 
3.30 	the day the annuity begins to accrue until the normal retirement age. The applicable annual 
3.31 	rate is the rate in effect on the employee's effective date of retirement and shall be considered 
3.32 	as fixed for the employee for the period until the employee reaches normal retirement age. 
3.33 	The applicable annual rates are the following:
4.1 	(i) until June 30, 2018, three percent if the employee became an employee before July 
4.2 	1, 2006, and 2.5 percent if the employee became an employee after June 30, 2006;
4.3 	(ii) a rate that changes each month, beginning July 1, 2018, through June 30, 2023, which 
4.4 	is determined by reducing the rate in item (i) to zero in equal monthly increments over the 
4.5 	five-year period; and
4.6 	(iii) after June 30, 2023, zero percent.
4.7 	After June 30, 2023, actuarial equivalent, for the purpose of determining the reduced 
4.8 	annuity commencing before normal retirement age under this clause, shall not take into 
4.9 	account any augmentation.
4.10 	(2) For covered employees who retire before July 1, 2018, the reduced annuity is the 
4.11 	actuarial equivalent of the annuity that would be payable to the employee if the employee 
4.12 	deferred receipt of the annuity until normal retirement age and the annuity amount were 
4.13 	augmented at an annual rate of three percent, compounded annually, from the day the annuity 
4.14 	begins to accrue until normal retirement age if the employee became an employee before 
4.15 	July 1, 2006, and at an annual rate of 2.5 percent, compounded annually, from the day the 
4.16 	annuity begins to accrue until the normal retirement age if the employee initially becomes
4.17 	became an employee after June 30, 2006.

4.18 	EFFECTIVE DATE. This section is effective July 1, 2017.

4.19 	Sec. 3. Minnesota Statutes 2016, section 352.22, subdivision 2, is amended to read:
4.20 		Subd. 2.Amount of refund. Except as provided in subdivision 3, the refund payable 
4.21 	to a person who ceased to be a state employee by reason of a termination of state service is 
4.22 	an amount equal to employee accumulated contributions plus interest until the date on which 
4.23 	the refund is paid, at the rate offollowing rates for the applicable period:
4.24 	(a) six percent per year compounded daily from the date that the contribution was made 
4.25 	until June 30, 2011, or until the date on which the refund is paid, whichever is earlier, and 
4.26 	at the rate of;
4.27 	(b) four percent per year compounded daily from the date that the contribution was made 
4.28 	or from July 1, 2011, whichever is later, until the date on which the refund is paid. until 
4.29 	June 30, 2017; and
4.30 	(c) three percent per year compounded daily from the date that the contribution was 
4.31 	made or July 1, 2017, whichever is later.
5.1 	Included with the refund is any interest paid as part of repayment of a past refund, plus 
5.2 	interest thereon from the date of repayment.

5.3 	Sec. 4. Minnesota Statutes 2016, section 352.22, is amended by adding a subdivision to 
5.4 	read:
5.5 		Subd. 2b.Refund repayment. Any person who has received a refund from the state 
5.6 	employees retirement plan, and who is a member of any of the retirement plans specified 
5.7 	in section 356.311, paragraph (b), may repay the refund with interest to the state employees 
5.8 	retirement plan. If a refund is repaid to the plan and more than one refund has been received 
5.9 	from the plan, all refunds must be repaid. Repayment must be made as provided in section 
5.10 	352.23, and under terms and conditions consistent with that section as agreed upon with 
5.11 	the director.

5.12 	EFFECTIVE DATE. This section is effective July 1, 2017.

5.13 	Sec. 5. Minnesota Statutes 2016, section 352.22, subdivision 3, is amended to read:
5.14 		Subd. 3.Deferred annuity. (a) An employee who has at least three years of allowable 
5.15 	service if employed before July 1, 2010, or who has at least five years of allowable service 
5.16 	if employed after June 30, 2010, when termination occurs may elect to leave the accumulated 
5.17 	contributions in the fund and thereby be entitled to a deferred retirement annuity. The annuity 
5.18 	must be computed under the law in effect when state service terminated, on the basis of the 
5.19 	allowable service credited to the person before the termination of service.
5.20 	(b) An employee on layoff or on leave of absence without pay, except a leave of absence 
5.21 	for health reasons, and who does not return to state service must have an annuity, deferred 
5.22 	annuity, or other benefit to which the employee may become entitled computed under the 
5.23 	law in effect on the employee's last working day.
5.24 	(c) No application for a deferred annuity may be made more than 60 days before the 
5.25 	time the former employee reaches the required age for entitlement to the payment of the 
5.26 	annuity. The deferred annuity begins to accrue no earlier than 60 days before the date the 
5.27 	application is filed in the office of the system, but not (1) before the date on which the 
5.28 	employee reaches the required age for entitlement to the annuity nor (2) before the day 
5.29 	following the termination of state service in a position which is not covered by the retirement 
5.30 	system.
5.31 	(d) Application for the accumulated contributions left on deposit with the fund may be 
5.32 	made at any time following the date of the termination of service.
6.1 	(e) Deferred annuities must be augmented as provided in section 352.72, subdivision 2
6.2 	subdivision 3a.

6.3 	EFFECTIVE DATE. This section is effective July 1, 2017.

6.4 	Sec. 6. Minnesota Statutes 2016, section 352.22, is amended by adding a subdivision to 
6.5 	read:
6.6 		Subd. 3a.Computation of deferred annuity. (a) The deferred annuity, if any, accruing 
6.7 	under subdivision 3, on the basis of allowable service before termination of state service 
6.8 	and augmented by interest compounded annually from the first day of the month following 
6.9 	the month in which the employee ceased to be a state employee, or July 1, 1971, whichever 
6.10 	is later, to the effective date of retirement.
6.11 	(b) For a person who became a state employee before July 1, 2006, the annuity must be 
6.12 	augmented at the following rate or rates:
6.13 	(1) five percent until January 1, 1981;
6.14 	(2) three percent thereafter until January 1 of the year following the year in which the 
6.15 	former employee attains age 55 or until January 1, 2012, whichever is earlier;
6.16 	(3) five percent from the January 1 next following the attainment of age 55 until 
6.17 	December 31, 2011;
6.18 	(4) two percent from January 1, 2012 , until December 31, 2017; and
6.19 	(5) after December 31, 2017, the deferred annuity must not be augmented.
6.20 	(c) For a person who became a state employee after June 30, 2006, the annuity must be 
6.21 	augmented at the following rate or rates:
6.22 	(1) 2.5 percent until December 31, 2011;
6.23 	(2) two percent from January 1, 2012, until December 31, 2017; and
6.24 	(3) after December 31, 2017, the deferred annuity must not be augmented.
6.25 	(d) The retirement annuity or disability benefit of, or the survivor benefit payable on 
6.26 	behalf of, a former state employee who terminated service before July 1, 1997, which is not 
6.27 	first payable until after June 30, 1997, must be increased on an actuarial equivalent basis 
6.28 	to reflect the change in the postretirement interest rate actuarial assumption under section 
6.29 	356.215, subdivision 8, from five percent to six percent under a calculation procedure and 
6.30 	the tables adopted by the board and approved by the actuary retained under section 356.214.

6.31 	EFFECTIVE DATE. This section is effective July 1, 2017.

7.1 	Sec. 7. Minnesota Statutes 2016, section 352B.08, is amended by adding a subdivision to 
7.2 	read:
7.3 		Subd. 2b.Computation of deferred annuity. (a) Deferred annuities must be computed 
7.4 	according to this chapter on the basis of allowable service before termination of service and 
7.5 	augmented by interest compounded annually from the first day of the month following the 
7.6 	month in which the member terminated service, or July 1, 1971, whichever is later, to the 
7.7 	effective date of retirement.
7.8 	(b) For a person who became an employee before July 1, 2006, the annuity must be 
7.9 	augmented at the following rate or rates:
7.10 	(1) five percent until January 1, 1981;
7.11 	(2) three percent from January 1, 1981, until December 31, 2011;
7.12 	(3) two percent from January 1, 2012, until December 31, 2017; and
7.13 	(4) after December 31, 2017, the deferred annuity must not be augmented.
7.14 	(c) For a person who became an employee after June 30, 2006, the annuity must be 
7.15 	augmented as follows:
7.16 	(1) 2.5 percent until December 31, 2011;
7.17 	(2) two percent from January 1, 2012, until December 31, 2017; and
7.18 	(3) after December 31, 2017, the deferred annuity must not be augmented.
7.19 	(d) The mortality table and interest assumption used to compute the annuity must be 
7.20 	those in effect when the member files application for annuity.

7.21 	EFFECTIVE DATE. This section is effective July 1, 2017.

7.22 	Sec. 8. Minnesota Statutes 2016, section 352D.085, subdivision 1, is amended to read:
7.23 		Subdivision 1.Combined service. Except as provided in section 356.30, 356.302, or 
7.24 	356.303, service under the unclassified program for which the employee has been credited 
7.25 	with employee shares may be used for the limited purpose of qualifying for benefits under 
7.26 	sections 352.115, 352.72, subdivision 1,352.113, 354.44, 354.45, 354.48, and 354.60
7.27 	356.311. The service also may not be used to qualify for a disability benefit under section 
7.28 	352.113 or 354.48 if a participant was under the unclassified program at the time of the 
7.29 	disability. Also, the years of service and salary paid while the participant was in the 
7.30 	unclassified program may not be used in determining the amount of benefits.

7.31 	EFFECTIVE DATE. This section is effective July 1, 2017.

8.1 	Sec. 9. Minnesota Statutes 2016, section 490.121, subdivision 25, is amended to read:
8.2 		Subd. 25.Tier I. "Tier I" is the benefit program of the retirement plan with a membership 
8.3 	specified by section 490.1221, paragraph (b), and governed by sections 356.415, subdivisions 
8.4 	1 andsubdivision 1f; and 490.121 to 490.133, except as modified in sections 490.121, 
8.5 	subdivision 21f, paragraph (b); 490.1222; 490.123, subdivision 1a, paragraph (b); and 
8.6 	490.124, subdivision 1, paragraphs (c) and (d).

8.7 	EFFECTIVE DATE. This section is effective July 1, 2017.

8.8 	Sec. 10. Minnesota Statutes 2016, section 490.121, subdivision 26, is amended to read:
8.9 		Subd. 26.Tier II. "Tier II" is the benefit program of the retirement plan with a 
8.10 	membership specified by section 490.1221, paragraph (c), and governed by sections 356.415, 
8.11 	subdivisions 1 andsubdivision 1f; 490.121 to 490.133, as modified in section 490.121, 
8.12 	subdivision 21f, paragraph (b); 490.1222; 490.123, subdivision 1a, paragraph (b); and 
8.13 	490.124, subdivision 1, paragraphs (c) and (d).

8.14 	EFFECTIVE DATE. This section is effective July 1, 2017.

8.15 	Sec. 11.  REPEALER.
 8.16 	Minnesota Statutes 2016, sections 3A.12; 352.045; 352.72; and 352B.30, are repealed.

8.17 	EFFECTIVE DATE. This section is effective July 1, 2017.

8.18 	ARTICLE 2
8.19 	PUBLIC EMPLOYEES RETIREMENT ASSOCIATION CHANGES

8.20 	Section 1. PERA BOARD OF TRUSTEES; REFORM PROPOSAL REQUIREMENT.
 8.21 	The board of trustees of the Public Employees Retirement Association shall present to 
8.22 	the Legislative Commission on Pensions and Retirement, no later than January 15, 2018, a 
8.23 	package of benefit and sustainability reforms for the general employees retirement plan 
8.24 	consisting of reforms that are similar to the changes made to the other statewide retirement 
8.25 	plans during the 2017 legislative session and any other related reforms that improve the 
8.26 	projected funded ratio of the plan. The package of reforms must be accompanied by the 
8.27 	opinion of the plan's approved actuary under section 356.215, subdivision 1, paragraph (c), 
8.28 	that implementation of the reforms is projected to result in the general employees retirement 
8.29 	plan attaining a ratio of market value of assets to actuarial accrued liabilities equal to or 
8.30 	greater than 90 percent by the end of the amortization period under section 356.215, 
8.31 	subdivision 11, in effect as of July 1, 2017. For purposes of determining the initial funding 
9.1 	ratio, the beginning asset value as of July 1, 2017, shall be the market value of assets expected 
9.2 	to occur if the assumed investment return for fiscal year 2017 is met. Subsequent funding 
9.3 	ratios should be based on the actuarial accrued liability determined as of July 1, 2017, and 
9.4 	subsequent projected assets and liabilities based on approved 2017 valuation assumptions. 
9.5 	The package of reforms shall be presented for consideration by the Legislative Commission 
9.6 	on Pensions and Retirement and passage by the legislature during the 2018 legislative 
9.7 	session.

9.8 	Sec. 2. REPEALER.
 9.9 	Minnesota Statutes 2016, sections 353.27, subdivision 3b; and 353.71, subdivision 1,
9.10 	are repealed.

9.11 	EFFECTIVE DATE. This section is effective July 1, 2017.

9.12 	ARTICLE 3
9.13 	TEACHERS RETIREMENT ASSOCIATION BENEFIT AND CONTRIBUTION 
9.14 	CHANGES

9.15 	Section 1. Minnesota Statutes 2016, section 354.436, subdivision 3, is amended to read:
9.16 		Subd. 3.Aid expiration. The aid amounts specified in this section terminate and this 
9.17 	section expires on the October 1 next following the later of the following dates: (1) when
9.18 	the date on which the current assets of the Teachers Retirement Association fund equal or 
9.19 	exceed the actuarial accrued liabilities of the fund as determined in the most recent actuarial 
9.20 	valuation report for the Teachers Retirement Association fund by the actuary retained under 
9.21 	section 356.214; or (2) when the member and employer contribution rates are first determined 
9.22 	to be eligible for a reduction under section 354.42, subdivisions 4a, 4b, 4c, and 4d.

9.23 	EFFECTIVE DATE. This section is effective July 1, 2017.

9.24 	Sec. 2. Minnesota Statutes 2016, section 354.44, subdivision 6, is amended to read:
9.25 		Subd. 6.Computation of formula program retirement annuity. (a) The formula 
9.26 	retirement annuity must be computed in accordance with the applicable provisions of the 
9.27 	formulas stated in paragraph (b) or (d) on the basis of each member's average salary under 
9.28 	section 354.05, subdivision 13a, for the period of the member's formula service credit.
9.29 	(b) This paragraph, in conjunction with paragraph (c), applies to a person who first 
9.30 	became a member of the association or a member of a pension fund listed in section 356.30, 
9.31 	subdivision 3, before July 1, 1989, unless paragraph (d), in conjunction with paragraph (e), 
10.1 	produces a higher annuity amount, in which case paragraph (d) applies. The average salary 
10.2 	as defined in section 354.05, subdivision 13a, multiplied by the following percentages per 
10.3 	year of formula service credit shall determine the amount of the annuity to which the member 
10.4 	qualifying therefor is entitled for service rendered before July 1, 2006:

10.5		Period
		Coordinated Member
		Basic Member
	
10.6
10.7		Each year of service 
during first ten
		1.2 percent  per year
		2.2 percent  per year
	
10.8
10.9		Each year of service 
thereafter
		1.7 percent  per year
		2.7 percent  per year
	
10.10 	For service rendered on or after July 1, 2006, by a member other than a member who 
10.11 	was a member of the former Duluth Teachers Retirement Fund Association between January 
10.12 	1, 2006, and June 30, 2015, and for service rendered on or after July 1, 2013, by a member 
10.13 	who was a member of the former Duluth Teachers Retirement Fund Association between 
10.14 	January 1, 2013, and June 30, 2015, the average salary as defined in section 354.05, 
10.15 	subdivision 13a, multiplied by the following percentages per year of service credit, determines 
10.16 	the amount the annuity to which the member qualifying therefor is entitled:

10.17		Period
		Coordinated Member
		Basic Member
	
10.18
10.19		Each year of service 
during first ten
		1.4 percent  per year
		2.2 percent  per year
	
10.20
10.21		Each year of service after 
ten years of service
		1.9 percent  per year
		2.7 percent  per year
	
10.22 	(c)(i) This paragraph applies only to a person who first became a member of the 
10.23 	association or a member of a pension fund listed in section 356.30, subdivision 3, before 
10.24 	July 1, 1989, and whose annuity is higher when calculated under paragraph (b), in conjunction 
10.25 	with this paragraph than when calculated under paragraph (d), in conjunction with paragraph 
10.26 	(e).
10.27 	(ii) Where any member retires prior to normal retirement age under a formula annuity, 
10.28 	the member shall be paid a retirement annuity in an amount equal to the normal annuity 
10.29 	provided in paragraph (b) reduced by one-quarter of one percent for each month that the 
10.30 	member is under normal retirement age at the time of retirement except that for any member 
10.31 	who has 30 or more years of allowable service credit, the reduction shall be applied only 
10.32 	for each month that the member is under age 62.
10.33 	(iii) Any member whose attained age plus credited allowable service totals 90 years is 
10.34 	entitled, upon application, to a retirement annuity in an amount equal to the normal annuity 
10.35 	provided in paragraph (b), without any reduction by reason of early retirement.
11.1 	(d) This paragraph applies to a member who has become at least 55 years old and first 
11.2 	became a member of the association after June 30, 1989, and to any other member who has 
11.3 	become at least 55 years old and whose annuity amount when calculated under this paragraph 
11.4 	and in conjunction with paragraph (e), is higher than it is when calculated under paragraph 
11.5 	(b), in conjunction with paragraph (c).
11.6 	(i) For a basic member, the average salary, as defined in section 354.05, subdivision 
11.7 	13a, multiplied by 2.7 percent for each year of service for a basic member determines the 
11.8 	amount of the retirement annuity to which the basic member is entitled. The annuity of a 
11.9 	basic member who was a member of the former Minneapolis Teachers Retirement Fund 
11.10 	Association as of June 30, 2006, must be determined according to the annuity formula under 
11.11 	the articles of incorporation of the former Minneapolis Teachers Retirement Fund Association 
11.12 	in effect as of that date.
11.13 	(ii) For a coordinated member, the average salary, as defined in section 354.05, 
11.14 	subdivision 13a, multiplied by 1.7 percent for each year of service rendered before July 1, 
11.15 	2006, and by 1.9 percent for each year of service rendered on or after July 1, 2006, for a 
11.16 	member other than a member who was a member of the former Duluth Teachers Retirement 
11.17 	Fund Association between January 1, 2006, and June 30, 2015, and by 1.9 percent for each 
11.18 	year of service rendered on or after July 1, 2013, for a member of the former Duluth Teachers 
11.19 	Retirement Fund Association between January 1, 2013, and June 30, 2015, determines the 
11.20 	amount of the retirement annuity to which the coordinated member is entitled.
11.21 	(e) This paragraph applies to a person who has become at least 55 years old and first 
11.22 	becomes a member of the association after June 30, 1989, and to any other member who 
11.23 	has become at least 55 years old and whose annuity is higher when calculated under 
11.24 	paragraph (d) in conjunction with this paragraph than when calculated under paragraph (b), 
11.25 	in conjunction with paragraph (c). An employee who retires under the formula annuity 
11.26 	before the normal retirement age shall be paid the normal annuity provided in paragraph 
11.27 	(d) reduced so that the reduced annuity is the actuarial equivalent of the annuity that would 
11.28 	be payable to the employee if the employee deferred receipt of the annuity and the annuity 
11.29 	amount were augmented at an annual rate of three percent compounded annually from the 
11.30 	day the annuity begins to accrue until the normal retirement age if the employee became 
11.31 	an employee before July 1, 2006, and at 2.5 percent compounded annually if the employee 
11.32 	becomes an employee after June 30, 2006. Except in regards to section 354.46, this paragraph 
11.33 	remains in effect until June 30, 2015.
11.34 	(f) AfterUntil June 30, 2020 2018, this paragraph applies to a person who has become 
11.35 	at least 55 years old and first becomes a member of the association after June 30, 1989, and 
12.1 	to any other member who has become at least 55 years old and whose annuity is higher 
12.2 	when calculated under paragraph (d) in conjunction with this paragraph than when calculated 
12.3 	under paragraph (b) in conjunction with paragraph (c). An employee who retires under the 
12.4 	formula annuity before the normal retirement age is entitled to receive the normal annuity 
12.5 	provided in paragraph (d).
12.6 	(i) For a person who is at least age 62 or older and has at least 30 years of service, the 
12.7 	annuity must be reduced by an early reduction factor of six percent per year of the annuity 
12.8 	that would be payable to the employee if the employee deferred receipt of the annuity and 
12.9 	the annuity amount were augmented at an annual rate of three percent compounded annually 
12.10 	from the day the annuity begins to accrue until the normal retirement age if the employee 
12.11 	became an employee before July 1, 2006, and at 2.5 percent compounded annually if the 
12.12 	employee became an employee after June 30, 2006.
12.13 	(ii) For a person who is not at least age 62 or older and does not have at least 30 years 
12.14 	of service, the annuity would be reduced by an early reduction factor of four percent per 
12.15 	year for ages 55 through 59 and seven percent per year of the annuity that would be payable 
12.16 	to the employee if the employee deferred receipt of the annuity and the annuity amount 
12.17 	were augmented at an annual rate of three percent compounded annually from the day the 
12.18 	annuity begins to accrue until the normal retirement age if the employee became an employee 
12.19 	before July 1, 2006, and at 2.5 percent compounded annually if the employee became an 
12.20 	employee after June 30, 2006.
12.21 	(g) For members who retire on or after July 1, 2018, this paragraph applies to a person 
12.22 	who has become at least 55 years old and first becomes a member of the association after 
12.23 	June 30, 1989, and to any other member who has become at least 55 years old and whose 
12.24 	annuity is higher when calculated under paragraph (d) in conjunction with this paragraph 
12.25 	than when calculated under paragraph (b) in conjunction with paragraph (c). An employee 
12.26 	who retires under the formula annuity before the normal retirement age is entitled to receive 
12.27 	the normal annuity provided in paragraph (d) reduced as described in clause (1) or (2), as 
12.28 	applicable.
12.29 	(1) For a person who is at least age 62 or older and has at least 30 years of service, the 
12.30 	annuity must be reduced by an early reduction factor of six percent per year of the annuity 
12.31 	that would be payable to the employee if the employee deferred receipt of the annuity and 
12.32 	the annuity amount were augmented at an annual rate of three percent compounded annually 
12.33 	from the day the annuity begins to accrue until the normal retirement age if the employee 
12.34 	became an employee before July 1, 2006, and at 2.5 percent compounded annually if the 
12.35 	employee became an employee after June 30, 2006.
13.1 	(2) For a person who is not at least age 62 and does not have at least 30 years of service, 
13.2 	the annuity must be reduced by an early reduction factor for each year that the member's 
13.3 	age of retirement precedes normal retirement age. The early reduction factors are four 
13.4 	percent of the annuity amount per year for ages 55 through 59 and seven percent of the 
13.5 	annuity amount per year for ages 60 through normal retirement age. The resulting annuity 
13.6 	must be further adjusted to take into account augmentation as if the employee deferred 
13.7 	receipt of the annuity until normal retirement age and the annuity were augmented at the 
13.8 	applicable annual rate compounded annually, from the day the annuity begins to accrue 
13.9 	until normal retirement age. The applicable annual rate is the rate in effect for the month 
13.10 	that includes the employee's effective date of retirement and shall be considered as fixed 
13.11 	for the employee for the period until the employee reaches normal retirement age. The 
13.12 	applicable annual rate begins with the rates in effect before July 1, 2018, of three percent 
13.13 	if the employee became an employee before July 1, 2006, or 2.5 percent if the employee 
13.14 	became an employee after June 30, 2006, and decreases each month beginning July 2018 
13.15 	in equal monthly increments over the five-year period that begins July 1, 2018, and ends 
13.16 	June 30, 2023, to zero percent effective for July 2023 and thereafter.
13.17 	After June 30, 2023, the reduced annuity commencing before normal retirement age 
13.18 	under this clause shall not take into account any augmentation.
13.19 	(h) After June 30, 2015, and before July 1, 2020 2018, for a person who would have a 
13.20 	reduced retirement annuity under either paragraph (e) or (f) if they were applicable, the 
13.21 	employee is entitled to receive a reduced annuity which must be calculated using a blended 
13.22 	reduction factor augmented monthly by 1/60 of the difference between the reduction required 
13.23 	under paragraph (e) and the reduction required under paragraph (f).
13.24 	(h)(i) No retirement annuity is payable to a former employee with a salary that exceeds 
13.25 	95 percent of the governor's salary unless and until the salary figures used in computing the 
13.26 	highest five successive years average salary under paragraph (a) have been audited by the 
13.27 	Teachers Retirement Association and determined by the executive director to comply with 
13.28 	the requirements and limitations of section 354.05, subdivisions 35 and 35a.

13.29 	EFFECTIVE DATE. If an appropriation is made to the Teachers Retirement Association 
13.30 	in the 2017 legislative session for the employer contribution increase in this act, this section 
13.31 	is effective the day following final enactment.

13.32 	Sec. 3. Minnesota Statutes 2016, section 354.49, subdivision 2, is amended to read:
13.33 		Subd. 2.Calculation. (a) Except as provided in section 354.44, subdivision 1, any person 
13.34 	who ceases to be a member by reason of termination of teaching service, is entitled to receive 
14.1 	a refund in an amount equal to the accumulated deductions credited to the account plus 
14.2 	interest compounded annually using the following interest rates:
14.3 	(1) before July 1, 1957, no interest accrues;
14.4 	(2) July 1, 1957, to June 30, 2011, six percent; and
14.5 	(3) after June 30 July 1, 2011, to June 30, 2017, four percent; and
14.6 	(4) after June 30, 2017, three percent.
14.7 	For the purpose of this subdivision, interest must be computed on fiscal year end balances 
14.8 	to the first day of the month in which the refund is issued.
14.9 	(b) If the person has received permanent disability payments under section 354.48, the 
14.10 	refund amount must be reduced by the amount of those payments.

14.11 	EFFECTIVE DATE. If an appropriation is made to the Teachers Retirement Association 
14.12 	in the 2017 legislative session for the employer contribution increase in this act, this section 
14.13 	is effective the day following final enactment.

14.14 	Sec. 4. Minnesota Statutes 2016, section 354.55, subdivision 11, is amended to read:
14.15 		Subd. 11.Deferred annuity; augmentation. (a) Any person covered under section 
14.16 	354.44, subdivision 6, who ceases to render teaching service, may leave the person's 
14.17 	accumulated deductions in the fund for the purpose of receiving a deferred annuity at 
14.18 	retirement.
14.19 	(b) The amount of the deferred retirement annuity is determined by section 354.44, 
14.20 	subdivision 6, and must be augmented as provided in this subdivision. The required reserves 
14.21 	for the annuity which had accrued when the member ceased to render teaching service must 
14.22 	be augmented, as further specified in this subdivision, by the applicable interest rate 
14.23 	compounded annually from the first day of the month following the month during which 
14.24 	the member ceased to render teaching service to the effective date of retirement.
14.25 	(c) No augmentation is not creditable if the deferral period is less than three months or 
14.26 	if deferral commenced before July 1, 1971.
14.27 	(d) For persons who became covered employees before July 1, 2006, with a deferral 
14.28 	period commencing after June 30, 1971, the annuity must be augmented as follows:
14.29 	(1) five percent interest compounded annually until January 1, 1981;
15.1 	(2) three percent interest compounded annually from January 1, 1981, until January 1 
15.2 	of the year following the year in which the deferred annuitant attains age 55 or until June 
15.3 	30, 2012, whichever is earlier;
15.4 	(3) five percent interest compounded annually from the date established in clause (2) to 
15.5 	the effective date of retirement or until June 30, 2012, whichever is earlier; and
15.6 	(4) two percent interest compounded annually after June 30, 2012 from July 1, 2012, 
15.7 	until June 30, 2018; and
15.8 	(5) after June 30, 2018, the deferred annuity must not be augmented.
15.9 	(e) For persons who become covered employees after June 30, 2006, the interest rate 
15.10 	used to augment the deferred annuity ismust be augmented as follows:
15.11 	(1) 2.5 percent interest compounded annually until June 30, 2012, or until the effective 
15.12 	date of retirement, whichever is earlier, and;
15.13 	(2) two percent interest compounded annually after June 30 from July 1, 2012, until 
15.14 	June 30, 2018; and
15.15 	(3) after June 30, 2018, the deferred annuity must not be augmented.
15.16 	(f) If a person has more than one period of uninterrupted service, a separate average 
15.17 	salary determined under section 354.44, subdivision 6, must be used for each period and 
15.18 	the required reserves related to each period must be augmented as specified in this 
15.19 	subdivision. The sum of the augmented required reserves is the present value of the annuity. 
15.20 	For the purposes of this subdivision, "period of uninterrupted service" means a period of 
15.21 	covered teaching service during which the member has not been separated from active 
15.22 	service for more than one fiscal year.
15.23 	(g) If a person repays a refund, the service restored by the repayment must be considered 
15.24 	as continuous with the next period of service for which the person has allowable service 
15.25 	credit in the Teachers Retirement Association.
15.26 	(h) If a person does not render teaching service in any one fiscal year or more consecutive 
15.27 	fiscal years and then resumes teaching service, the formula percentages used from the date 
15.28 	of the resumption of teaching service must be those applicable to new members.
15.29 	(i) The mortality table and interest rate actuarial assumption used to compute the annuity 
15.30 	must be the applicable mortality table established by the board under section 354.07, 
15.31 	subdivision 1, and the interest rate actuarial assumption under section 356.215 in effect 
15.32 	when the member retires.
16.1 	(j)(f) In no case may the annuity payable under this subdivision be less than the amount 
16.2 	of annuity payable under section 354.44, subdivision 6.
16.3 	(k)(g) The requirements and provisions for retirement before normal retirement age 
16.4 	contained in section 354.44, subdivision 6, also apply to an employee fulfilling the 
16.5 	requirements with a combination of service as provided in section 354.60 356.311.
16.6 	(l)(h) The augmentation provided by this subdivision applies to the benefit provided in 
16.7 	section 354.46, subdivision 2.
16.8 	(m)(i) The augmentation provided by this subdivision does not apply to any period in 
16.9 	which a person is on an approved leave of absence from an employer unit covered by the 
16.10 	provisions of this chapter.
16.11 	(n)(j) The retirement annuity or disability benefit of, or the survivor benefit payable on 
16.12 	behalf of, a former teacher who terminated service before July 1, 1997, which is not first 
16.13 	payable until after June 30, 1997, must be increased on an actuarial equivalent basis to 
16.14 	reflect the change in the postretirement interest rate actuarial assumption under section 
16.15 	356.215, subdivision 8, from five percent to six percent under a calculation procedure and 
16.16 	tables adopted by the board as recommended by an approved actuary and approved by the 
16.17 	actuary retained under section 356.214.

16.18 	EFFECTIVE DATE. If an appropriation is made to the Teachers Retirement Association 
16.19 	in the 2017 legislative session for the employer contribution increase in this act, this section 
16.20 	is effective the day following final enactment.

16.21 	Sec. 5.  REPEALER.
 16.22 	Minnesota Statutes 2016, sections 354.42, subdivisions 4a, 4b, 4c, and 4d; and 354.60,
16.23 	are repealed.

16.24 	EFFECTIVE DATE. This section is effective July 1, 2017.

16.25 	ARTICLE 4
16.26 	ST. PAUL TEACHERS RETIREMENT FUND ASSOCIATION BENEFIT AND 
16.27 	CONTRIBUTION CHANGES

16.28 	Section 1. Minnesota Statutes 2016, section 354A.011, subdivision 3a, is amended to read:
16.29 		Subd. 3a.Actuarial equivalent. "Actuarial equivalent" means the condition of one 
16.30 	annuity or benefit having an equal actuarial present value as another annuity or benefit, 
16.31 	determined as of a given date with each actuarial present value based on the appropriate 
16.32 	mortality table adopted by the appropriate board of trustees based on the experience of that 
17.1 	retirement fund association as recommended by the actuary retained under section 356.214, 
17.2 	and approved under section 356.215, subdivision 18, and using the applicable preretirement 
17.3 	or postretirement interest rateinvestment return assumption specified in section 356.215, 
17.4 	subdivision 8.

17.5 	EFFECTIVE DATE. This section is effective July 1, 2017.

17.6 	Sec. 2. Minnesota Statutes 2016, section 354A.29, subdivision 7, is amended to read:
17.7 		Subd. 7.Eligibility for payment of Postretirement adjustments. (a) Annually, after 
17.8 	June 30, the board of trustees of the St. Paul Teachers Retirement Fund Association must 
17.9 	determine the amount of any postretirement adjustment using the procedures in this 
17.10 	subdivision and subdivision 8 or 9, whichever is applicable.
17.11 	(b) On January 1 (a) Except as set forth in paragraph (c), each person who has been 
17.12 	receiving an annuity or benefit under the articles of incorporation, the bylaws, or this chapter, 
17.13 	whose effective date of benefit commencement occurred on or before July 1 of the calendar 
17.14 	year immediately before the adjustment, is eligible to receive aan annual postretirement 
17.15 	increase as specified in subdivision 8 or 9. adjustment, effective as of each January 1, as 
17.16 	follows:
17.17 	(1) there shall be no postretirement adjustment on January 1, 2018, and January 1, 2019; 
17.18 	and
17.19 	(2) the postretirement adjustment shall be one percent on January 1, 2020, and each 
17.20 	January 1 thereafter.
17.21 	(b) The amount determined under paragraph (a), clause (2), is the full postretirement 
17.22 	adjustment to be applied as a permanent increase to the regular payment of each eligible 
17.23 	member on January 1 of the next calendar year. For any eligible member whose effective 
17.24 	date of benefit commencement occurred after January 1 of the calendar year immediately 
17.25 	before the postretirement adjustment is applied, the amount determined under paragraph 
17.26 	(a), clause (2), must be reduced by 50 percent.
17.27 	(c) Each person who retires on or after July 1, 2023, is entitled to an annual postretirement 
17.28 	adjustment, effective as of each January 1, beginning with the year following the year in 
17.29 	which the member attains normal retirement age.
17.30 	(d) Paragraph (c) does not apply to members who retire under section 354A.31, 
17.31 	subdivision 6, paragraph (b), or who retire when the member is at least age 62 and has at 
17.32 	least 30 years of service under section 354A.31, subdivision 7.

18.1 	EFFECTIVE DATE. If an appropriation is made to the Teachers Retirement Association 
18.2 	in the 2017 legislative session for the employer contribution increase in this act, this section 
18.3 	is effective the day following final enactment.

18.4 	Sec. 3. Minnesota Statutes 2016, section 354A.31, subdivision 7, is amended to read:
18.5 		Subd. 7. Reduction for early retirement. (a) This subdivision applies to a person who 
18.6 	has become at least 55 years old and first becomes a coordinated member after June 30, 
18.7 	1989, and to any other coordinated member who has become at least 55 years old and whose 
18.8 	annuity is higher when calculated using the retirement annuity formula percentage in 
18.9 	subdivision 4, paragraph (d), or subdivision 4a, paragraph (d), as applicable, in conjunction 
18.10 	with this subdivision than when calculated under subdivision 4, paragraph (c), or subdivision 
18.11 	4a, paragraph (c), in conjunction with subdivision 6. An employee who retires under the 
18.12 	formula annuity before the normal retirement age shall be paid the normal annuity reduced 
18.13 	as described in paragraph (b) if the person retires on or after July 1, 2018, or in paragraph 
18.14 	(c) if the person retires before July 1, 2018, as applicable.
18.15 	(b) A coordinated member who retires before the normal retirement age and on or after 
18.16 	July 1, 2018, is entitled to receive a retirement annuity calculated using the retirement 
18.17 	annuity formula percentage in subdivision 4, paragraph (d), or subdivision 4a, paragraph 
18.18 	(d), whichever applies,  reduced as described in clause (1) or (2), as applicable.
18.19 	(1) If the member retires when the member is younger than age 62 or with fewer than 
18.20 	30 years of service, the annuity must be reduced by an early reduction factor for each year 
18.21 	that the member's age of retirement precedes normal retirement age. The early reduction 
18.22 	factors are four percent per year for ages 55 through 59 and seven percent per year for ages 
18.23 	60 through normal retirement age. The resulting annuity must be further adjusted to take 
18.24 	into account augmentation as if the employee had deferred receipt of the annuity until normal 
18.25 	retirement age and the annuity were augmented at the applicable annual rate, compounded 
18.26 	annually, from the day the annuity begins to accrue until normal retirement age. The 
18.27 	applicable annual rate is the rate in effect on the employee's effective date of retirement and 
18.28 	shall be considered as fixed for the employee. The applicable annual rates are the following:
18.29 	(i) until June 30, 2018, 2.5 percent;
18.30 	(ii) a rate that changes each month, beginning July 1, 2018, through June 30, 2023, which 
18.31 	is determined by reducing the rate in item (i) to zero in equal monthly increments over the 
18.32 	five-year period; and
18.33 	(iii) after June 30, 2023, zero percent.
19.1 	After June 30, 2023, the reduced annuity commencing before normal retirement age 
19.2 	under this clause shall not take into account any augmentation.
19.3 	(2) If the member retires when the member is at least age 62 or older and has at least 30 
19.4 	years of service, the member is entitled to receive a retirement annuity calculated using the 
19.5 	retirement annuity formula percentage in subdivision 4, paragraph (d), or subdivision 4a, 
19.6 	paragraph (c), whichever applies, multiplied by the applicable early retirement factor 
19.7 	specified for members "Age 62 or older with 30 years of service" in the table in paragraph 
19.8 	(c).
19.9 	(c) A coordinated member who retires before the normal retirement age and before July 
19.10 	1, 2018, is entitled to receive a retirement annuity calculated using the retirement annuity 
19.11 	formula percentage in subdivision 4, paragraph (d), or subdivision 4a, paragraph (d), 
19.12 	whichever applies, multiplied by the applicable early retirement factor specified below:

19.13		Under age 62
	Age 62 or older
	
19.14		or less than 30 years of service
	with 30 years of service

19.15	Normal retirement age:
	65
	66
	65
	66
	
19.16	Age at retirement
					
19.17	55
	0.5376
	0.4592
			
19.18	56
	0.5745
	0.4992
			
19.19	57
	0.6092
	0.5370
			
19.20	58
	0.6419
	0.5726
			
19.21	59
	0.6726
	0.6062
			
19.22	60
	0.7354
	0.6726
			
19.23	61
	0.7947
	0.7354
			
19.24	62
	0.8507
	0.7947
	0.8831
	0.8389
	
19.25	63
	0.9035
	0.8507
	0.9246
	0.8831
	
19.26	64
	0.9533
	0.9035
	0.9635
	0.9246
	
19.27	65
	1.0000
	0.9533
	1.0000
	0.9635
	
19.28	66
		1.0000
		1.0000
	
19.29 	For normal retirement ages between ages 65 and 66, the early retirement factors must 
19.30 	be determined by linear interpolation between the early retirement factors applicable for 
19.31 	normal retirement ages 65 and 66.

19.32 	EFFECTIVE DATE. This section is effective July 1, 2017.

20.1 	Sec. 4. Minnesota Statutes 2016, section 354A.37, subdivision 2, is amended to read:
20.2 		Subd. 2.Eligibility for deferred retirement annuity. (a) Any coordinated member 
20.3 	who ceases to render teaching services for the school district in which the teachers retirement 
20.4 	fund association is located, with sufficient allowable service credit to meet the minimum 
20.5 	service requirements specified in section 354A.31, subdivision 1, shall be entitled to a 
20.6 	deferred retirement annuity in lieu of a refund under subdivision 1.
20.7 	(b) The deferred retirement annuity must be computed under section 354A.31 and shall 
20.8 	be augmented as provided in this subdivision by the applicable interest rate compounded 
20.9 	annually from the first day of the month following the month during which the member 
20.10 	ceased to render teaching service to the effective date of retirement. There is no augmentation 
20.11 	if this period is less than three months.
20.12 	(c) The deferred annuity commences upon application after the person on deferred status 
20.13 	attains at least the minimum age specified in section 354A.31, subdivision 1.
20.14 	(b) The monthly annuity amount that had accrued when the member ceased to render 
20.15 	teaching service must be augmented from the first day of the month following the month 
20.16 	during which the member ceased to render teaching service to the effective date of retirement. 
20.17 	There is no augmentation if this period is less than three months. The rate of augmentation 
20.18 	is
20.19 	(d) For a person who became a covered employee before July 1, 2006, the annuity must 
20.20 	be augmented as follows:
20.21 	(1) three percent compounded annually until January 1 of the year following the year 
20.22 	in which the former member attains age 55, or until June 30, 2012, whichever is earlier;
20.23 	(2) five percent compounded annually after that date to July 1 from the January 1, next 
20.24 	following the attainment of age 55 or until June 30, 2012, and;
20.25 	(3)  two percent compounded annually after that date to the effective date of retirement 
20.26 	if the employee became an employee before July 1, 2006, and atfrom July 1, 2012, until 
20.27 	June 30, 2018; and
20.28 	(4) after June 30, 2018, the deferred annuity must not be augmented.
20.29 	(e) For a person who became a covered employee after June 30, 2006, the annuity must 
20.30 	be augmented as follows:
20.31 	(1) 2.5 percent compounded annually to July 1, 2012, anduntil June 30, 2012;
21.1 	(2) two percent compounded annually after that date to the effective date of retirement 
21.2 	if the employee became an employee after June 30, 2006 from July 1, 2012, until June 30, 
21.3 	2018; and
21.4 	. If a person has more than one period of uninterrupted service, a separate average salary 
21.5 	determined under section 354A.31 must be used for each period, and the monthly annuity 
21.6 	amount related to each period must be augmented as provided in this subdivision. The sum 
21.7 	of the augmented monthly annuity amounts determines the total deferred annuity payable. 
21.8 	If a person repays a refund, the service restored by the repayment must be considered as 
21.9 	continuous with the next period of service for which the person has credit with the fund. If 
21.10 	a person does not render teaching services in any one fiscal year or more consecutive fiscal 
21.11 	years and then resumes teaching service, the formula percentages used from the date of 
21.12 	resumption of teaching service are those applicable to new members. The mortality table 
21.13 	and interest assumption used to compute the annuity are the table established by the fund 
21.14 	to compute other annuities, and the interest assumption under section 356.215 in effect 
21.15 	when the member retires. A period of uninterrupted service for the purpose of this subdivision 
21.16 	means a period of covered teaching service during which the member has not been separated 
21.17 	from active service for more than one fiscal year.
21.18 	(3) after June 30, 2018, the deferred annuity must not be augmented.
21.19 	(c)(f) The augmentation provided by this subdivision applies to the benefit provided in 
21.20 	section 354A.35, subdivision 2.
21.21 	(g) The augmentation provided by this subdivision does not apply to any period in which 
21.22 	a person is on an approved leave of absence from an employer unit.

21.23 	EFFECTIVE DATE. This section is effective July 1, 2017.

21.24 	Sec. 5. Minnesota Statutes 2016, section 354A.37, subdivision 3, is amended to read:
21.25 		Subd. 3.Computation of refund amount. A former coordinated member who qualifies 
21.26 	for a refund under subdivision 1 is entitled to receive a refund equal to the amount of the 
21.27 	former coordinated member's accumulated employee contributions with interest at the rate 
21.28 	offollowing rates for the applicable period:
21.29 	(a) Six percent per annum compounded annually to July 1, 2011, if the person is a former 
21.30 	member of the St. Paul Teachers Retirement Fund Association, and;
21.31 	(b)  four percent per annum compounded annually to July 1, 2017; and
21.32 	(c) three percent per annum compounded annually thereafter.

22.1 	Sec. 6.  REPEALER.
 22.2 	(a) Minnesota Statutes 2016, section 354A.29, subdivisions 8 and 9, are repealed.
22.3 	(b) Minnesota Statutes 2016, section 354A.39, is repealed.

22.4 	EFFECTIVE DATE. Paragraph (a) is effective the day following final enactment. 
22.5 	Paragraph (b) is effective July 1, 2017.

22.6 	ARTICLE 5
22.7 	POSTRETIREMENT ADJUSTMENTS FOR STATEWIDE PLANS
22.8 	AND GENERAL PROVISIONS

22.9 	Section 1. Minnesota Statutes 2016, section 356.215, subdivision 8, is amended to read:
22.10 		Subd. 8.Interest and salaryActuarial assumptions. (a) The actuarial valuation must 
22.11 	use the applicable following interestinvestment return assumption:
22.12 	(1) select and ultimate interest rate assumption

22.1422.13
	plan
	ultimate interest 
rateassumption
		
22.15	teachers retirement plan
	8.5%
		
22.16 	The select preretirement interest rate assumption for the period through June 30, 2017, 
22.17 	is eight percent.
22.18 	(2) single rate interest rate assumption

22.2122.19
22.20
	plan
	interest rate
investment return 
assumption
		
22.22	general state employees retirement plan
	8 7.5%
		
22.23	correctional state employees retirement plan
	8 7.5
		
22.24	State Patrol retirement plan
	8 7.5
		
22.25
22.26
22.27	legislators retirement plan, and for the 
constitutional officers calculation of total plan 
liabilities
	0
		
22.28	judges retirement plan
	8 7.5
		
22.29	general public employees retirement plan
	8 7.5
		
22.30	public employees police and fire retirement plan
	8 7.5
		
22.31
22.32	local government correctional service retirement 
plan
	8 7.5
		
22.33	teachers retirement plan
	7.5
		
22.34	St. Paul teachers retirement plan
	8 7.5
		
22.35	Bloomington Fire Department Relief Association
	6
		
23.1
23.2	local monthly benefit volunteer firefighter relief 
associations
	5
		
23.3
23.4	monthly benefit retirement plans in the statewide 
volunteer firefighter retirement plan
	6
		
23.5 	(b)(1) If funding stability has been attained, The actuarial valuation for each of the 
23.6 	covered retirement plans listed in section 356.415, subdivision 2, must use atake into account 
23.7 	the postretirement adjustment rate actuarial assumption equal to the postretirement adjustment 
23.8 	rateor rates applicable to the plan as specified in section 354A.27, subdivision 7;354A.29, 
23.9 	subdivision 9 7; or 356.415, subdivision 1, whichever applies.
23.10 	(2) If funding stability has not been attained, the valuation must use a select postretirement 
23.11 	adjustment rate actuarial assumption equal to the postretirement adjustment rate specified 
23.12 	in section 354A.27, subdivision 6a; 354A.29, subdivision 8; or 356.415, subdivision 1a, 
23.13 	1b, 1c, 1d, 1e, or 1f, whichever applies, for a period ending when the approved actuary 
23.14 	estimates that the plan will attain the defined funding stability measure, and thereafter an 
23.15 	ultimate postretirement adjustment rate actuarial assumption equal to the postretirement 
23.16 	adjustment rate under section 354A.27, subdivision 7; 354A.29, subdivision 9; or 356.415, 
23.17 	subdivision 1, for the applicable period or periods beginning when funding stability is 
23.18 	projected to be attained.
23.19 	(c) The actuarial valuation must use the applicable following single rate future salary 
23.20 	increase assumption, the applicable following modified single rate future salary increase 
23.21 	assumption, or the applicable following graded rate future salary increase assumption:
23.22 	(1) single rate future salary increase assumption

23.23	plan
	future salary increase assumption
	
23.24	legislators retirement plan
		5%
	
23.25	judges retirement plan
		2.75
	
23.26	Bloomington Fire Department Relief Association
		4
	
23.27 	(2) age-related future salary increase age-related select and ultimate future salary increase 
23.28 	assumption or graded rate future salary increase assumption

23.29	plan
	future salary increase assumption
	
23.30	local government correctional service retirement plan
	assumption B
	
23.31	St. Paul teachers retirement plan
	assumption A
	
23.32 	For plans other than the St. Paul teachers 
23.33 	retirement plan and the local government 
23.34 	correctional service retirement plan, the select 
23.35 	calculation is: during the designated select 
24.1 	period, a designated percentage rate is 
24.2 	multiplied by the result of the designated 
24.3 	integer minus T, where T is the number of 
24.4 	completed years of service, and is added to 
24.5 	the applicable future salary increase 
24.6 	assumption. The designated select period is 
24.7 	ten years and the designated integer is ten for 
24.8 	the local government correctional service 
24.9 	retirement plan and 15 for the St. Paul 
24.10 	Teachers Retirement Fund Association. The 
24.11 	designated percentage rate is 0.2 percent for 
24.12 	the St. Paul Teachers Retirement Fund 
24.13 	Association.
24.14 	The ultimate future salary increase assumption is:

24.15	age
	A
	B
		
24.16	16
	5.9%
	8.75%
		
24.17	17
	5.9
	8.75
		
24.18	18
	5.9
	8.75
		
24.19	19
	5.9
	8.75
		
24.20	20
	5.9
	8.75
		
24.21	21
	5.9
	8.5
		
24.22	22
	5.9
	8.25
		
24.23	23
	5.85
	8
		
24.24	24
	5.8
	7.75
		
24.25	25
	5.75
	7.5
		
24.26	26
	5.7
	7.25
		
24.27	27
	5.65
	7
		
24.28	28
	5.6
	6.75
		
24.29	29
	5.55
	6.5
		
24.30	30
	5.5
	6.5
		
24.31	31
	5.45
	6.25
		
24.32	32
	5.4
	6.25
		
24.33	33
	5.35
	6.25
		
24.34	34
	5.3
	6
		
24.35	35
	5.25
	6
		
24.36	36
	5.2
	5.75
		
24.37	37
	5.15
	5.75
		
25.1	38
	5.1
	5.75
		
25.2	39
	5.05
	5.5
		
25.3	40
	5
	5.5
		
25.4	41
	4.95
	5.5
		
25.5	42
	4.9
	5.25
		
25.6	43
	4.85
	5
		
25.7	44
	4.8
	5
		
25.8	45
	4.75
	4.75
		
25.9	46
	4.7
	4.75
		
25.10	47
	4.65
	4.75
		
25.11	48
	4.6
	4.75
		
25.12	49
	4.55
	4.75
		
25.13	50
	4.5
	4.75
		
25.14	51
	4.45
	4.75
		
25.15	52
	4.4
	4.75
		
25.16	53
	4.35
	4.75
		
25.17	54
	4.3
	4.75
		
25.18	55
	4.25
	4.5
		
25.19	56
	4.2
	4.5
		
25.20	57
	4.15
	4.25
		
25.21	58
	4.1
	4
		
25.22	59
	4.05
	4
		
25.23	60
	4
	4
		
25.24	61
	4
	4
		
25.25	62
	4
	4
		
25.26	63
	4
	4
		
25.27	64
	4
	4
		
25.28	65
	4
	3.75
		
25.29	66
	4
	3.75
		
25.30	67
	4
	3.75
		
25.31	68
	4
	3.75
		
25.32	69
	4
	3.75
		
25.33	70
	4
	3.75
		
25.34 	(3) service-related ultimate future salary increase assumption

25.35
25.36	general state employees retirement plan of the Minnesota 
State Retirement System
	assumption A
	
25.37
25.38	general employees retirement plan of the Public 
Employees Retirement Association
	assumption B
	
26.1	Teachers Retirement Association
	assumption C
	
26.2	public employees police and fire retirement plan
	assumption D
	
26.3	State Patrol retirement plan
	assumption E
	
26.4
26.5	correctional state employees retirement plan of the 
Minnesota State Retirement System
	assumption F

26.6
26.7	service 
length
	A
	B
	C
	D
	E
	F
	
26.8	1
	10.25%
	11.78%
	12%
	12.75%
	7.75%
	5.75%
	
26.9	2
	7.85
	8.65
	9
	10.75
	7.25
	5.6
	
26.10	3
	6.65
	7.21
	8
	8.75
	6.75
	5.45
	
26.11	4
	5.95
	6.33
	7.5
	7.75
	6.5
	5.3
	
26.12	5
	5.45
	5.72
	7.25
	6.25
	6.25
	5.15
	
26.13	6
	5.05
	5.27
	7
	5.85
	6
	5
	
26.14	7
	4.75
	4.91
	6.85
	5.55
	5.75
	4.85
	
26.15	8
	4.45
	4.62
	6.7
	5.35
	5.6
	4.7
	
26.16	9
	4.25
	4.38
	6.55
	5.15
	5.45
	4.55
	
26.17	10
	4.15
	4.17
	6.4
	5.05
	5.3
	4.4
	
26.18	11
	3.95
	3.99
	6.25
	4.95
	5.15
	4.3
	
26.19	12
	3.85
	3.83
	6
	4.85
	5
	4.2
	
26.20	13
	3.75
	3.69
	5.75
	4.75
	4.85
	4.1
	
26.21	14
	3.55
	3.57
	5.5
	4.65
	4.7
	4
	
26.22	15
	3.45
	3.45
	5.25
	4.55
	4.55
	3.9
	
26.23	16
	3.35
	3.35
	5
	4.55
	4.4
	3.8
	
26.24	17
	3.25
	3.26
	4.75
	4.55
	4.25
	3.7
	
26.25	18
	3.25
	3.25
	4.5
	4.55
	4.1
	3.6
	
26.26	19
	3.25
	3.25
	4.25
	4.55
	3.95
	3.5
	
26.27	20
	3.25
	3.25
	4
	4.55
	3.8
	3.5
	
26.28	21
	3.25
	3.25
	3.9
	4.45
	3.75
	3.5
	
26.29	22
	3.25
	3.25
	3.8
	4.35
	3.75
	3.5
	
26.30	23
	3.25
	3.25
	3.7
	4.25
	3.75
	3.5
	
26.31	24
	3.25
	3.25
	3.6
	4.25
	3.75
	3.5
	
26.32	25
	3.25
	3.25
	3.5
	4.25
	3.75
	3.5
	
26.33	26
	3.25
	3.25
	3.5
	4.25
	3.75
	3.5
	
26.34	27
	3.25
	3.25
	3.5
	4.25
	3.75
	3.5
	
26.35	28
	3.25
	3.25
	3.5
	4.25
	3.75
	3.5
	
26.36	29
	3.25
	3.25
	3.5
	4.25
	3.75
	3.5
	
26.37	30 or more
	3.25
	3.25
	3.5
	4.25
	3.75
	3.5
	
27.1 	(d) The actuarial valuation must use the applicable following payroll growth assumption 
27.2 	for calculating the amortization requirement for the unfunded actuarial accrued liability 
27.3 	where the amortization retirement is calculated as a level percentage of an increasing payroll:

27.4	plan
	payroll growth assumption
	
27.5
27.6	general state employees retirement plan of the Minnesota 
State Retirement System
	3.5%
	
27.7	correctional state employees retirement plan
	3.5
	
27.8	State Patrol retirement plan
	3.5
	
27.9	judges retirement plan
	2.75
	
27.10
27.11	general employees retirement plan of the Public 
Employees Retirement Association
	3.5
	
27.12	public employees police and fire retirement plan
	3.5
	
27.13	local government correctional service retirement plan
	3.5
	
27.14	teachers retirement plan
	3.75
	
27.15	St. Paul teachers retirement plan
	4
	
27.16 	(e) The assumptions set forth in paragraphs (c) and (d) continue to apply, unless a 
27.17 	different salary assumption or a different payroll increase assumption:
27.18 	(1) has been proposed by the governing board of the applicable retirement plan;
27.19 	(2) is accompanied by the concurring recommendation of the actuary retained under 
27.20 	section 356.214, subdivision 1, if applicable, or by the approved actuary preparing the most 
27.21 	recent actuarial valuation report if section 356.214 does not apply; and
27.22 	(3) has been approved or deemed approved under subdivision 18.

27.23 	EFFECTIVE DATE. This section is effective July 1, 2017, except that the modification 
27.24 	made to the Teachers Retirement Association investment return in this section is effective 
27.25 	the day following final enactment only if an appropriation is made to the Teachers Retirement 
27.26 	Association in the 2017 legislative session for the employer contribution increase in this 
27.27 	act.

27.28 	Sec. 2. Minnesota Statutes 2016, section 356.215, subdivision 9, is amended to read:
27.29 		Subd. 9.Other assumptions. The(a) Each plan's actuarial valuation must use 
27.30 	assumptions concerning base mortality rates, disability, retirement, withdrawal, retirement 
27.31 	age, and any other relevant demographic or economic factor. These assumptions must be 
27.32 	set at levels consistent with those determined in the most recent quadrennial experience 
27.33 	study completed under subdivision 16, if required, or representative of the best estimate of 
28.1 	future experience as recommended by the plan's approved actuary, if a quadrennial experience 
28.2 	study is not required.
28.3 	(b) The actuarial valuation may use an assumption concerning future mortality 
28.4 	improvement. This assumption may be set at levels consistent with those determined in the 
28.5 	most recent mortality improvement scale published by the Society of Actuaries or as 
28.6 	otherwise recommended by the plan's approved actuary.
28.7 	(c) The actuarial valuation must contain an exhibit indicating anythe actuarial 
28.8 	assumptions used in preparing the valuation report.

28.9 	EFFECTIVE DATE. This section is effective July 1, 2017.

28.10 	Sec. 3. Minnesota Statutes 2016, section 356.215, subdivision 11, is amended to read:
28.11 		Subd. 11.Amortization contributions. (a) In addition to the exhibit indicating the level 
28.12 	normal cost, the actuarial valuation of the retirement plan must contain an exhibit for financial 
28.13 	reporting purposes indicating the additional annual contribution sufficient to amortize the 
28.14 	unfunded actuarial accrued liability and must contain an exhibit for contribution 
28.15 	determination purposes indicating the additional contribution sufficient to amortize the 
28.16 	unfunded actuarial accrued liability. For the retirement plans listed in subdivision 8, paragraph 
28.17 	(c), but excluding the legislators retirement plan, the additional contribution must be 
28.18 	calculated on a level percentage of covered payroll basis by the established date for full 
28.19 	funding in effect when the valuation is prepared, assuming annual payroll growth at the 
28.20 	applicable percentage rate set forth in subdivision 8, paragraph (d). For all other retirement 
28.21 	plans and for the legislators retirement plan, the additional annual contribution must be 
28.22 	calculated on a level annual dollar amount basis.
28.23 	(b) For any retirement plan other than a retirement plan governed by paragraph (d), (e), 
28.24 	(f), (g), (h), (i), or (j), if there has not been a change in the actuarial assumptions used for 
28.25 	calculating the actuarial accrued liability of the fund, a change in the benefit plan governing 
28.26 	annuities and benefits payable from the fund, a change in the actuarial cost method used in 
28.27 	calculating the actuarial accrued liability of all or a portion of the fund, or a combination 
28.28 	of the three, which change or changes by itself or by themselves without inclusion of any 
28.29 	other items of increase or decrease produce a net increase in the unfunded actuarial accrued 
28.30 	liability of the fund, the established date for full funding is the first actuarial valuation date 
28.31 	occurring after June 1, 2020.
28.32 	(c) For any retirement plan, if there has been a change in any or all of the actuarial 
28.33 	assumptions used for calculating the actuarial accrued liability of the fund, a change in the 
29.1 	benefit plan governing annuities and benefits payable from the fund, a change in the actuarial 
29.2 	cost method used in calculating the actuarial accrued liability of all or a portion of the fund, 
29.3 	or a combination of the three, and the change or changes, by itself or by themselves and 
29.4 	without inclusion of any other items of increase or decrease, produce a net increase in the 
29.5 	unfunded actuarial accrued liability in the fund, the established date for full funding must 
29.6 	be determined using the following procedure:
29.7 	(i) the unfunded actuarial accrued liability of the fund must be determined in accordance 
29.8 	with the plan provisions governing annuities and retirement benefits and the actuarial 
29.9 	assumptions in effect before an applicable change;
29.10 	(ii) the level annual dollar contribution or level percentage, whichever is applicable, 
29.11 	needed to amortize the unfunded actuarial accrued liability amount determined under item 
29.12 	(i) by the established date for full funding in effect before the change must be calculated 
29.13 	using the interest assumption specified in subdivision 8 in effect before the change;
29.14 	(iii) the unfunded actuarial accrued liability of the fund must be determined in accordance 
29.15 	with any new plan provisions governing annuities and benefits payable from the fund and 
29.16 	any new actuarial assumptions and the remaining plan provisions governing annuities and 
29.17 	benefits payable from the fund and actuarial assumptions in effect before the change;
29.18 	(iv) the level annual dollar contribution or level percentage, whichever is applicable, 
29.19 	needed to amortize the difference between the unfunded actuarial accrued liability amount 
29.20 	calculated under item (i) and the unfunded actuarial accrued liability amount calculated 
29.21 	under item (iii) over a period of 30 years from the end of the plan year in which the applicable 
29.22 	change is effective must be calculated using the applicable interest assumption specified in 
29.23 	subdivision 8 in effect after any applicable change;
29.24 	(v) the level annual dollar or level percentage amortization contribution under item (iv) 
29.25 	must be added to the level annual dollar amortization contribution or level percentage 
29.26 	calculated under item (ii);
29.27 	(vi) the period in which the unfunded actuarial accrued liability amount determined in 
29.28 	item (iii) is amortized by the total level annual dollar or level percentage amortization 
29.29 	contribution computed under item (v) must be calculated using the interest assumption 
29.30 	specified in subdivision 8 in effect after any applicable change, rounded to the nearest 
29.31 	integral number of years, but not to exceed 30 years from the end of the plan year in which 
29.32 	the determination of the established date for full funding using the procedure set forth in 
29.33 	this clause is made and not to be less than the period of years beginning in the plan year in 
29.34 	which the determination of the established date for full funding using the procedure set forth 
30.1 	in this clause is made and ending by the date for full funding in effect before the change; 
30.2 	and
30.3 	(vii) the period determined under item (vi) must be added to the date as of which the 
30.4 	actuarial valuation was prepared and the date obtained is the new established date for full 
30.5 	funding.
30.6 	(d) For the general employees retirement plan of the Public Employees Retirement 
30.7 	Association, the established date for full funding is June 30, 2031 2047.
30.8 	(e) For the Teachers Retirement Association, the established date for full funding is June 
30.9 	30, 20372047.
30.10 	(f) For the correctional state employees retirement plan and the State Patrol retirement 
30.11 	plan of the Minnesota State Retirement System, the established date for full funding is June 
30.12 	30, 2038 2047.
30.13 	(g) For the judges retirement plan, the established date for full funding is June 30, 2038
30.14 	2047.
30.15 	(h) For the local government correctional service retirement plan and the public employees 
30.16 	police and fire retirement plan, the established date for full funding is June 30, 2038 2047.
30.17 	(i) For the St. Paul Teachers Retirement Fund Association, the established date for full 
30.18 	funding is June 30, 2042. In addition to other requirements of this chapter, the annual 
30.19 	actuarial valuation must contain an exhibit indicating the funded ratio and the deficiency 
30.20 	or sufficiency in annual contributions when comparing liabilities to the market value of the 
30.21 	assets of the fund as of the close of the most recent fiscal year 2047.
30.22 	(j) For the general state employees retirement plan of the Minnesota State Retirement 
30.23 	System, the established date for full funding is June 30, 2040 2047.
30.24 	(k) For the retirement plans for which the annual actuarial valuation indicates an excess 
30.25 	of valuation assets over the actuarial accrued liability, the valuation assets in excess of the 
30.26 	actuarial accrued liability must be recognized as a reduction in the current contribution 
30.27 	requirements by an amount equal to the amortization of the excess expressed as a level 
30.28 	percentage of pay over a 30-year period beginning anew with each annual actuarial valuation 
30.29 	of the plan.

30.30 	EFFECTIVE DATE. This section is effective July 1, 2017, except that the modification 
30.31 	made to the established date for full funding for the Teachers Retirement Association in 
30.32 	this section is effective the day following final enactment only if an appropriation is made 
31.1 	to the Teachers Retirement Association in the 2017 legislative session for the employer 
31.2 	contribution increase in this act.

31.3 	Sec. 4. Minnesota Statutes 2016, section 356.30, subdivision 1, is amended to read:
31.4 		Subdivision 1.Eligibility; computation of annuity. (a) Notwithstanding any provisions 
31.5 	of the laws governing the covered retirement plans enumeratedlisted in subdivision 3, a 
31.6 	person who has met the qualifications of paragraph (b) may elect to receive, upon retirement,
31.7 	a retirement annuity from each enumeratedcovered retirement plan in which the person has 
31.8 	at least one-half year of allowable service, based on the allowable service in each plan, 
31.9 	subject to the provisions of paragraph (c) (b), if the person has:
31.10 	(1) allowable service in any two or more of the covered plans;
31.11 	(2) at least one-half year of allowable service in each covered plan, based on the allowable 
31.12 	service in each plan;
31.13 	(3) total allowable service that equals or exceeds the longest service credit vesting 
31.14 	requirement of the applicable retirement plan; and
31.15 	(4) not begun to receive an annuity from any covered plan or has made application for 
31.16 	benefits from each applicable plan and the retirement annuity effective dates of each plan 
31.17 	are within a one-year period.
31.18 	(b) A person may receive, upon retirement, a retirement annuity from each enumerated 
31.19 	retirement plan in which the person has at least one-half year of allowable service, and 
31.20 	augmentation of a deferred annuity calculated at the appropriate rate under the laws governing 
31.21 	each public pension plan or fund named in subdivision 3, based on the date of the person's 
31.22 	initial entry into public employment from the date the person terminated all public service 
31.23 	if:
31.24 	(1) the person has allowable service in any two or more of the enumerated plans;
31.25 	(2) the person has sufficient allowable service in total that equals or exceeds the applicable 
31.26 	service credit vesting requirement of the retirement plan with the longest applicable service 
31.27 	credit vesting requirement; and
31.28 	(3) the person has not begun to receive an annuity from any enumerated plan or the 
31.29 	person has made application for benefits from each applicable plan and the effective dates 
31.30 	of the retirement annuity with each plan under which the person chooses to receive an 
31.31 	annuity are within a one-year period.
32.1 	(c)(b) If all requirements in paragraph (a) have been satisfied, the retirement annuity 
32.2 	from each plan must be based upon the allowable service, accrual rates, and average salary 
32.3 	in the applicable plan except as further specified or modified in the following clauses:
32.4 	(1) the laws governing annuities must be the law in effect on the date of termination 
32.5 	from the last period of public service under a covered retirement plan with which the person 
32.6 	earned a minimum of one-half year of allowable service credit during that employment;
32.7 	(2) the "average salary" on which the annuity from each covered plan in which the 
32.8 	employee has credit in aused to calculate the annuity for each formula plan must be based 
32.9 	on the employee's highest five successive years of covered salary during the entire service 
32.10 	in covered plans;
32.11 	(3) the accrual rates to be used byunder each plan must be thosethe percentages 
32.12 	prescribed by each plan's formula as continuedin effect for the respective years of allowable 
32.13 	service from one plan to the next, recognizing all previous allowable service with the other 
32.14 	covered plans;
32.15 	(4) the allowable service in all the covered plans must be combined in determining 
32.16 	eligibility for and the application of each plan's provisions inwith respect to reduction in 
32.17 	the annuity amount for retirement prior to normal retirement age; and
32.18 	(5) the annuity amount payable for any allowable service under a nonformula plan of
32.19 	that is a covered plan must not be affected, but such service and covered salary must be 
32.20 	used in the above calculation.
32.21 	(c) If a person eligible for an annuity under paragraph (a) from each covered plan, except 
32.22 	the Public Employees Retirement Association, terminates all public service, the deferred 
32.23 	annuity must be augmented from the date of termination until the earlier of:
32.24 	(1) the effective date of retirement; or
32.25 	(2) December 31, 2017, for the Minnesota State Retirement System or June 30, 2018, 
32.26 	for the Teachers Retirement Association and the St. Paul Teachers Retirement Association.
32.27 	A deferred annuity for all applicable plans, except the Public Employees Retirement 
32.28 	Association, must not be augmented after the applicable dates under clause (2). The 
32.29 	appropriate rate of augmentation is the rate in effect on the date on which the person entered 
32.30 	into public employment and subsequently adjusted according to the laws governing each 
32.31 	covered plan, as applicable. The Public Employees Retirement Association must augment 
32.32 	a deferred annuity under section 353.74.
33.1 	(d) This section does not apply to any person whose final termination from the last public 
33.2 	service under a covered plan was before May 1, 1975.
33.3 	(e) For the purpose of computing annuities under this section, the accrual rates used by 
33.4 	any covered plan, except the public employees police and fire plan, the judges retirement 
33.5 	fund, and the State Patrol retirement plan, must not exceed 2.7 percent per year of service 
33.6 	for any year of service or fraction thereof. The formula percentage used by:
33.7 	(1) the judges retirement fund accrual rate must not exceed 3.2 percent per year of service 
33.8 	for any year of service or fraction thereof. The accrual rate used by;
33.9 	(2) the public employees police and fire plan and the State Patrol retirement plan accrual 
33.10 	rate must not exceed 3.0 percent per year of service for any year of service or fraction 
33.11 	thereof. The accrual rate or rates used by;
33.12 	(3) the legislators retirement plan accrual rate must not exceed 2.5 percent, but this limit 
33.13 	does not apply to the adjustment provided under section 3A.02, subdivision 1, paragraph 
33.14 	(c); and
33.15 	(4) any other covered plan's accrual rate must not exceed 2.7 percent per year of service 
33.16 	for any year of service or fraction thereof.
33.17 	(f) Any period of time for which a person has credit in more than one of the covered 
33.18 	plans must be used only once for the purpose of determining total allowable service.
33.19 	(g) If the period of duplicated service credit is more than one-half year, or the person 
33.20 	has credit for more than one-half year, with each of the plans, each plan must apply its 
33.21 	formula to a prorated service credit for the period of duplicated service based on a fraction 
33.22 	of the salary on which deductions were paid to that fund for the period divided by the total 
33.23 	salary on which deductions were paid to all plans for the period.
33.24 	(h) If the period of duplicated service credit is less than one-half year, or when added 
33.25 	to other service credit with that plan is less than one-half year, the service credit must be 
33.26 	ignored and a refund of contributions made to the person in accord with that plan's refund 
33.27 	provisions.

33.28 	EFFECTIVE DATE. This section is effective July 1, 2017.

33.29 	Sec. 5. [356.311] COVERAGE BY MORE THAN ONE PLAN.
33.30 	(a) Any person who has been a member of two or more of the retirement plans listed in 
33.31 	paragraph (b) is entitled, when qualified, to an annuity from each fund if:
34.1 	(i) the person's combined service in any two or more retirement plans equals or exceeds 
34.2 	the vesting requirement of the fund with the longest vesting requirement; and
34.3 	(ii) the person has not taken a refund from any of the retirement plans.
34.4 	(b) This section applies to any defined benefit plan administered by the Minnesota State 
34.5 	Retirement System, including the State Patrol Retirement Plan; the Public Employees 
34.6 	Retirement Association, including the public employees police and fire plan; the Teachers 
34.7 	Retirement Association; and the St. Paul Teachers Retirement Fund Association, except as 
34.8 	noted in paragraph (c).
34.9 	(c) This section does not apply to plans providing benefits for police officers or 
34.10 	firefighters under sections 424A.091 to 424A.096 or the Bloomington Fire Department 
34.11 	Relief Association.
34.12 	(d) No portion of the service upon which the retirement annuity from one retirement 
34.13 	plan is based shall be again used in the computation of a retirement annuity from another 
34.14 	plan. The annuity from each plan must be determined under the laws applicable to that plan 
34.15 	except that the requirement that a person meet the vesting requirement in any particular 
34.16 	plan shall not apply, provided the combined service in any two or more plans equals or 
34.17 	exceeds the vesting requirement of the plan with the longest vesting requirement.
34.18 	(e) Any deferred annuity payable under this section shall be subject to augmentation 
34.19 	under the laws applicable to the deferred annuity.
34.20 	(f) Any person to whom an annuity is not payable under this section because the person 
34.21 	took a refund from one of the funds shall be entitled to repay the refund in accordance with 
34.22 	the laws governing the refund. Upon repayment, the person is entitled to annuities under 
34.23 	this section, if the person would otherwise be entitled.

34.24 	EFFECTIVE DATE. This section is effective July 1, 2017.

34.25 	Sec. 6. Minnesota Statutes 2016, section 356.415, subdivision 1, is amended to read:
34.26 		Subdivision 1.Annual postretirement adjustments; generally Minnesota State 
34.27 	Retirement System general state employees retirement plan, legislators retirement 
34.28 	plan, and unclassified state employees retirement program. (a) Except as otherwise 
34.29 	provided in subdivision 1a, 1b, 1c, 1d, 1e, or 1f set forth in paragraph (c), recipients of a 
34.30 	retirement annuity, disability benefit, or survivor benefit recipients of a coveredfrom the 
34.31 	general state employees retirement plan, the legislators retirement plan, or the unclassified 
34.32 	state employees retirement program  are entitled to aan annual postretirement adjustment 
34.33 	annually on, effective as of each January 1, as follows:
35.1 	(1) effective January 1, 2018, through December 31, 2022, a postretirement increase of 
35.2 	2.5one percent must be applied each year, effective January 1, to the monthly annuity or 
35.3 	benefit of each annuitant or benefit recipient who has been receiving an annuity or a benefit 
35.4 	for at least 12 full months as of the June 30 of the calendar year immediately before the 
35.5 	adjustment; and
35.6 	(2) effective January 1, 2018, through December 31, 2022, for each annuitant or benefit 
35.7 	recipient who has been receiving an annuity or a benefit amount for at least one full month, 
35.8 	but less than 12 full months as of the June 30 of the calendar year immediately before the 
35.9 	adjustment, an annual postretirement increase of 1/12 of 2.5one percent for each month 
35.10 	that the person has been receiving an annuity or benefit must be applied to the monthly 
35.11 	annuity or benefit amount of the annuitant or benefit recipient;
35.12 	(3) effective January 1, 2023, and thereafter, a postretirement increase of 1.5 percent 
35.13 	must be applied each year to the monthly annuity or benefit of each annuitant or benefit 
35.14 	recipient who has been receiving an annuity or a benefit for at least 12 full months as of the 
35.15 	June 30 of the calendar year immediately before the adjustment; and
35.16 	(4) effective January 1, 2023, and thereafter, for each annuitant or benefit recipient who 
35.17 	has been receiving an annuity or a benefit amount for at least one full month, but less than 
35.18 	12 full months as of the June 30 of the calendar year immediately before the adjustment, 
35.19 	an annual postretirement increase of 1/12 of 1.5 percent for each month that the person has 
35.20 	been receiving an annuity or benefit must be applied to the monthly annuity or benefit 
35.21 	amount of the annuitant or benefit recipient.
35.22 	(b) An increase in annuity or benefit payments under this sectionsubdivision must be 
35.23 	made automatically unless written notice is filed by the annuitant or benefit recipient with 
35.24 	the executive director of the covered retirement plan requesting that the increase not be 
35.25 	made.
35.26 	(c) Members who retire on or after January 1, 2023, under the general state employees 
35.27 	retirement plan, the legislators retirement plan, or the unclassified state employees retirement 
35.28 	program are entitled to an annual postretirement adjustment of the member's retirement 
35.29 	annuity, effective as of each January 1, beginning with the year following the year in which 
35.30 	the member attains normal retirement age, as follows:
35.31 	(1) if a member has been receiving an annuity for at least 12 full months as of the June 
35.32 	30 of the calendar year immediately before the date of the adjustment, a postretirement 
35.33 	increase equal to the percentage specified in paragraph (a), clause (1) or (3), as applicable, 
35.34 	must be applied, effective on January 1, to the member's monthly annuity;
36.1 	(2) if a member has been receiving an annuity for at least one full month, but less than 
36.2 	12 full months as of the June 30 of the calendar year immediately before the date of 
36.3 	adjustment, a postretirement increase of 1/12 of the percentage specified in clause (1) for 
36.4 	each month that the member has been receiving an annuity must be applied, effective on 
36.5 	January 1, to the member's monthly annuity; or
36.6 	(3) if a member has been receiving an annuity for fewer than six months before the date 
36.7 	of adjustment, a postretirement increase shall not be applied until the next January 1 and 
36.8 	the amount of the adjustment shall be the amount determined under clause (2).
36.9 	(d) Paragraph (c) does not apply to members who retire under section 352.116, 
36.10 	subdivision 1, paragraph (c).

36.11 	EFFECTIVE DATE. This section is effective July 1, 2017.

36.12 	Sec. 7. Minnesota Statutes 2016, section 356.415, subdivision 1a, is amended to read:
36.13 		Subd. 1a.Annual postretirement adjustments; Minnesota State Retirement System 
36.14 	plans other than State Patrolcorrectional state employees retirement plan. (a) 
36.15 	Retirement annuity, disability benefit, or survivor benefit recipients of the legislators 
36.16 	retirement plan, including constitutional officers as specified in chapter 3A, the general 
36.17 	state employees retirement plan, the correctional state employees retirement plan, and the 
36.18 	unclassified state employees retirement program are entitled to aan annual postretirement 
36.19 	adjustment annually on, effective as of each January 1, as follows:
36.20 	(1) for each successive January 1, if the definition of funding stability under paragraph 
36.21 	(b) has not been met as of the prior July 1 for or with respect to the applicable retirement 
36.22 	plan, a postretirement increase of two1.5 percent must be applied each year, effective on 
36.23 	January 1, to the monthly annuity or benefit of each annuitant or benefit recipient who has 
36.24 	been receiving an annuity or a benefit for at least 12 full months as of the June 30 of the 
36.25 	calendar year immediately before the adjustment; and
36.26 	(2) for each successive January 1, if the definition of funding stability under paragraph 
36.27 	(b) has not been met as of the prior July 1 for or with respect to the applicable retirement 
36.28 	plan, for each annuitant or benefit recipient who has been receiving an annuity or a benefit 
36.29 	for at least one full month, but less than 12 full months as of the June 30 of the calendar 
36.30 	year immediately before the adjustment, an annual postretirement increase of 1/12 of two
36.31 	1.5 percent for each month that the person has been receiving an annuity or benefit must 
36.32 	be applied to the monthly annuity or benefit amount of each annuitant or benefit recipient.
37.1 	(b) Increases under this subdivision for the general state employees retirement plan or 
37.2 	the correctional state employees retirement plan terminate on December 31 of the calendar 
37.3 	year in which two prior consecutive actuarial valuations prepared by the approved actuary 
37.4 	under sections 356.214 and 356.215 and the standards for actuarial work promulgated by 
37.5 	the Legislative Commission on Pensions and Retirement indicate that the market value of 
37.6 	assets of the retirement plan equals or exceeds 90 percent of the actuarial accrued liability 
37.7 	of the retirement plan and increases under subdivision 1 recommence after that date. Increases 
37.8 	under this subdivision for the legislators retirement plan established under chapter 3A, 
37.9 	including the constitutional officers specified in that chapter, and for the unclassified state 
37.10 	employees retirement program, terminate on December 31 of the calendar year in which 
37.11 	two prior consecutive actuarial valuations prepared by the approved actuary under sections 
37.12 	356.214 and 356.215 and the standards for actuarial work promulgated by the Legislative 
37.13 	Commission on Pensions and Retirement indicate that the market value of assets of the 
37.14 	general state employees retirement plan equals or exceeds 90 percent of the actuarial accrued 
37.15 	liability of the retirement plan and increases under subdivision 1 recommence after that 
37.16 	date.
37.17 	(c) After having met the definition of funding stability under paragraph (b), the increase 
37.18 	provided in paragraph (a), clauses (1) and (2), rather than an increase under subdivision 1, 
37.19 	for the general state employees retirement plan or the correctional state employees retirement 
37.20 	plan, is again to be applied in a subsequent year or years if the market value of assets of the 
37.21 	applicable plan equals or is less than:
37.22 	(1) 85 percent of the actuarial accrued liabilities of the applicable plan for two consecutive 
37.23 	actuarial valuations; or
37.24 	(2) 80 percent of the actuarial accrued liabilities of the applicable plan for the most recent 
37.25 	actuarial valuation.
37.26 	(d) After having met the definition of funding stability under paragraph (b), the increase 
37.27 	provided in paragraph (a), clauses (1) and (2), rather than an increase under subdivision 1, 
37.28 	for the legislators retirement plan, including the constitutional officers, and for the 
37.29 	unclassified state employees retirement program, is again to be applied in a subsequent year 
37.30 	or years if the market value of assets of the general state employees retirement plan equals 
37.31 	or is less than:
37.32 	(1) 85 percent of the actuarial accrued liabilities of the applicable plan for two consecutive 
37.33 	actuarial valuations; or
38.1 	(2) 80 percent of the actuarial accrued liabilities of the applicable plan for the most recent 
38.2 	actuarial valuation.
38.3 	(e)(b) An increase in annuity or benefit payments under this subdivision must be made 
38.4 	automatically unless written notice is filed by the annuitant or benefit recipient with the 
38.5 	executive director of the applicable covered retirement plan requesting that the increase not 
38.6 	be made.

38.7 	EFFECTIVE DATE. This section is effective July 1, 2017.

38.8 	Sec. 8. Minnesota Statutes 2016, section 356.415, subdivision 1b, is amended to read:
38.9 		Subd. 1b.Annual postretirement adjustments; PERA; general employees retirement 
38.10 	plan and local government correctional retirement plan. (a) Retirement annuity, disability 
38.11 	benefit, or survivor benefit recipients of the general employees retirement plan of the Public 
38.12 	Employees Retirement Association and the local government correctional service retirement 
38.13 	plan are entitled to aan annual postretirement adjustment annually on, effective as of each
38.14 	January 1, as follows:
38.15 	(1) for each successive January 1 until funding stability is restored for the applicable 
38.16 	retirement plan, a postretirement increase of one percent must be applied each year, effective 
38.17 	on January 1, to the monthly annuity or benefit amount of each annuitant or benefit recipient 
38.18 	who has been receiving an annuity or benefit for at least 12 full months as of the June 30 
38.19 	of the calendar year immediately before the adjustment;
38.20 	(2) for each successive January 1 until funding stability is restored for the applicable 
38.21 	retirement plan, for each annuitant or benefit recipient who has been receiving an annuity 
38.22 	or a benefit for at least one full month, but less than 12 full months as of the June 30 of the 
38.23 	calendar year immediately before the adjustment, an annual postretirement increase of 1/12 
38.24 	of one percent for each month the person has been receiving an annuity or benefit must be 
38.25 	applied; to the monthly annuity or benefit amount of each annuitant or benefit recipient.
38.26 	(3) for each January 1 following the restoration of funding stability for the applicable 
38.27 	retirement plan, a postretirement increase of 2.5 percent must be applied each year, effective 
38.28 	January 1, to the monthly annuity or benefit amount of each annuitant or benefit recipient 
38.29 	who has been receiving an annuity or benefit for at least 12 full months as of the June 30 
38.30 	of the calendar year immediately before the adjustment; and
38.31 	(4) for each January 1 following restoration of funding stability for the applicable 
38.32 	retirement plan, for each annuity or benefit recipient who has been receiving an annuity or 
38.33 	a benefit for at least one full month, but less than 12 full months as of the June 30 of the 
39.1 	calendar year immediately before the adjustment, an annual postretirement increase of 1/12 
39.2 	of 2.5 percent for each month the person has been receiving an annuity or benefit must be 
39.3 	applied.
39.4 	(b) Funding stability is restored when the market value of assets of the applicable 
39.5 	retirement plan equals or exceeds 90 percent of the actuarial accrued liabilities of the 
39.6 	applicable plan in the two most recent consecutive actuarial valuations prepared under 
39.7 	section 356.215 and the standards for actuarial work by the approved actuary retained by 
39.8 	the Public Employees Retirement Association under section 356.214.
39.9 	(c) After having met the definition of funding stability under paragraph (b), the increase 
39.10 	provided in paragraph (a), clauses (1) and (2), rather than an increase under subdivision 1, 
39.11 	paragraph (a), clauses (3) and (4), is again to be applied in a subsequent year or years if the 
39.12 	market value of assets of the applicable plan equals or is less than:
39.13 	(1) 85 percent of the actuarial accrued liabilities of the applicable plan for two consecutive 
39.14 	actuarial valuations; or
39.15 	(2) 80 percent of the actuarial accrued liabilities of the applicable plan for the most recent 
39.16 	actuarial valuation.
39.17 	(d) An increase in annuity or benefit payments under this section must be made 
39.18 	automatically unless written notice is filed by the annuitant or benefit recipient with the 
39.19 	executive director of the Public Employees Retirement Association requesting that the 
39.20 	increase not be made.

39.21 	EFFECTIVE DATE. This section is effective July 1, 2017.

39.22 	Sec. 9. Minnesota Statutes 2016, section 356.415, subdivision 1c, is amended to read:
39.23 		Subd. 1c.Annual postretirement adjustments; PERA-police and fire. (a) Retirement 
39.24 	annuity, disability benefit, or survivor benefit recipients of the public employees police and 
39.25 	fire retirement plan are entitled to aan annual postretirement adjustment annually on , 
39.26 	effective as of each January 1, if the definition of funding stability under paragraph (c) has 
39.27 	not been met, as follows:
39.28 	(1) for each annuitant or benefit recipient whose annuity or benefit effective date is on 
39.29 	or before June 1, 2014, who has been receiving the annuity or benefit for at least 12 full 
39.30 	months as of the immediate preceding June 30, an amount equal to one percent in each year; 
39.31 	or
40.1 	(2) for each annuitant or benefit recipient whose annuity or benefit effective date is on 
40.2 	or before June 1, 2014, who has been receiving the annuity or benefit for at least one full 
40.3 	month, but less than 12 months, as of the immediate preceding June 30, an amount equal 
40.4 	to 1/12 of one percent for each month of annuity or benefit receipt; and
40.5 	(3)(1) for each annuitant or benefit recipient whose annuity or benefit effective date is 
40.6 	after June 1, 2014, who will have been receiving an annuity or benefit for at least 36 full 
40.7 	months as of the immediate preceding June 30, an amount equal toa postretirement increase 
40.8 	of one percent must be applied each year to the monthly annuity or benefit amount of the 
40.9 	annuitant or benefit recipient; or
40.10 	(4)(2) for each annuitant or benefit recipient whose annuity or benefit effective date is 
40.11 	after June 1, 2014, who has been receiving the annuity or benefit for at least 25 full months, 
40.12 	but less than 36 months as of the immediate preceding June 30, an amount equal toa 
40.13 	postretirement increase of 1/12 of one percent for each full month ofthat the person has 
40.14 	been receiving an annuity or benefit receipt during the fiscal year in which the annuity or 
40.15 	benefit was effective must be applied each year to the monthly annuity or benefit amount 
40.16 	of the annuitant or benefit recipient.
40.17 	(b) Retirement annuity, disability benefit, or survivor benefit recipients of the public 
40.18 	employees police and fire retirement plan are entitled to a postretirement adjustment annually 
40.19 	on each January 1 following the restoration of funding stability as defined under paragraph 
40.20 	(c) and during the continuation of funding stability as defined under paragraph (c), as follows:
40.21 	(1) for each annuitant or benefit recipient who has been receiving the annuity or benefit 
40.22 	for at least 36 full months as of the immediate preceding June 30, an amount equal to 2.5 
40.23 	percent; and
40.24 	(2) for each annuitant or benefit recipient who has been receiving the annuity or benefit 
40.25 	for at least 25 full months, but less than 36 full months, as of the immediate preceding June 
40.26 	30, an amount equal to 1/12 of 2.5 percent for each full month of annuity or benefit receipt 
40.27 	during the fiscal year in which the annuity or benefit was effective.
40.28 	(c) Funding stability is restored when the market value of assets of the public employees 
40.29 	police and fire retirement plan equals or exceeds 90 percent of the actuarial accrued liabilities 
40.30 	of the applicable plan in the two most recent consecutive actuarial valuations prepared under 
40.31 	section 356.215 and under the standards for actuarial work of the Legislative Commission 
40.32 	on Pensions and Retirement by the approved actuary retained by the Public Employees 
40.33 	Retirement Association under section 356.214.
41.1 	(d) After having met the definition of funding stability under paragraph (c), a full or 
41.2 	prorated increase, as provided in paragraph (a), clause (1), (2), (3), or (4), whichever applies, 
41.3 	rather than adjustments under paragraph (b), is again applied in a subsequent year or years 
41.4 	if the market value of assets of the public employees police and fire retirement plan equals 
41.5 	or is less than:
41.6 	(1) 85 percent of the actuarial accrued liabilities of the applicable plan for two consecutive 
41.7 	actuarial valuations; or
41.8 	(2) 80 percent of the actuarial accrued liabilities of the applicable plan for the most recent 
41.9 	actuarial valuation.
41.10 	(e)(b) An increase in annuity or benefit payments under this section must be made 
41.11 	automatically unless written notice is filed by the annuitant or benefit recipient with the 
41.12 	executive director of the Public Employees Retirement Association requesting that the 
41.13 	increase not be made.

41.14 	EFFECTIVE DATE. This section is effective July 1, 2017.

41.15 	Sec. 10. Minnesota Statutes 2016, section 356.415, subdivision 1d, is amended to read:
41.16 		Subd. 1d.Teachers Retirement Association annual postretirement adjustments. (a)
41.17 	Except as set forth in paragraph (d), recipients of a retirement annuity, disability benefit, 
41.18 	or survivor benefit recipients of the Teachers Retirement Association are entitled to aan 
41.19 	annual postretirement adjustment annually on, effective as of each January 1, as follows:
41.20 	(1) for each January 1 until funding stability is restored, a postretirement increase of 
41.21 	twoone percent must be applied each year, effective on January 1, to the monthly annuity 
41.22 	or benefit amount of each annuitant or benefit recipient who has been receiving an annuity 
41.23 	or a benefit for at least 12 full months as of the June 30 of the calendar year immediately 
41.24 	before the adjustment; and
41.25 	(2) for each January 1 until funding stability is restored, for each annuitant or benefit 
41.26 	recipient who has been receiving an annuity or a benefit for at least one full month, but less 
41.27 	than 12 full months as of the June 30 of the calendar year immediately before the adjustment, 
41.28 	an annuala postretirement increase of 1/12 of twoone percent for each month the person 
41.29 	has been receiving an annuity or benefit must be applied;.
41.30 	(3) for each January 1 following the restoration of funding stability, a postretirement 
41.31 	increase of 2.5 percent must be applied each year, effective January 1, to the monthly annuity 
41.32 	or benefit amount of each annuitant or benefit recipient who has been receiving an annuity 
42.1 	or a benefit for at least 12 full months as of the June 30 of the calendar year immediately 
42.2 	before the adjustment; and
42.3 	(4) for each January 1 following the restoration of funding stability, for each annuitant 
42.4 	or benefit recipient who has been receiving an annuity or a benefit for at least one month, 
42.5 	but less than 12 full months as of the June 30 of the calendar year immediately before the 
42.6 	adjustment, an annual postretirement increase of 1/12 of 2.5 percent for each month the 
42.7 	person has been receiving an annuity or benefit must be applied.
42.8 	(b) Funding stability is restored when the market value of assets of the Teachers 
42.9 	Retirement Association equals or exceeds 90 percent of the actuarial accrued liabilities of 
42.10 	the Teachers Retirement Association in the two most recent prior actuarial valuations 
42.11 	prepared under section 356.215 and the standards for actuarial work by the approved actuary 
42.12 	retained by the Teachers Retirement Association under section 356.214.
42.13 	(c) After having met the definition of funding stability under paragraph (b), the increase 
42.14 	provided in paragraph (a), clauses (1) and (2), rather than an increase under subdivision 1, 
42.15 	or the increase under paragraph (a), clauses (3) and (4), is again to be applied in a subsequent 
42.16 	year or years if the market value of assets of the plan equals or is less than:
42.17 	(1) 85 percent of the actuarial accrued liabilities of the plan for two consecutive actuarial 
42.18 	valuations; or
42.19 	(2) 80 percent of the actuarial accrued liabilities of the plan for the most recent actuarial 
42.20 	valuation.
42.21 	(3) effective January 1, 2023, and thereafter, a postretirement increase must be applied 
42.22 	each year to the monthly annuity or benefit amount of each annuitant or benefit recipient 
42.23 	who has been receiving an annuity or a benefit for at least 12 full months as of the June 30 
42.24 	of the calendar year immediately before the adjustment, at the following rates:

42.25		from January 1, 2023, through December 31, 2023
	1.1 percent
	
42.26		from January 1, 2024, through December 31, 2024
	1.2 percent
	
42.27		from January 1, 2025, through December 31, 2025
	1.3 percent
	
42.28		from January 1, 2026, through December 31, 2026
	1.4 percent
	
42.29		from January 1, 2027, and thereafter
	1.5 percent
	
42.30 	(4) effective January 1, 2023, and thereafter, for each annuitant or benefit recipient who 
42.31 	has been receiving an annuity or a benefit for at least one full month, but less than 12 full 
42.32 	months, as of the June 30 of the calendar year immediately before the adjustment, an annual 
42.33 	postretirement increase of 1/12 of the applicable percentage for each month that the person 
43.1 	has been receiving an annuity or benefit must be applied to the monthly annuity or benefit 
43.2 	amount of the annuitant or benefit recipient. The applicable percentages are the following:

43.3		from January 1, 2023, through December 31, 2023
	1.1 percent
	
43.4		from January 1, 2024, through December 31, 2024
	1.2 percent
	
43.5		from January 1, 2025, through December 31, 2025
	1.3 percent
	
43.6		from January 1, 2026, through December 31, 2026
	1.4 percent
	
43.7		from January 1, 2027, and thereafter
	1.5 percent
	
43.8 	(d) (b) An increase in annuity or benefit payments under this section must be made 
43.9 	automatically unless written notice is filed by the annuitant or benefit recipient with the 
43.10 	executive director of the Teachers Retirement Association requesting that the increase not 
43.11 	be made.
43.12 	(e) (c) The retirement annuity payable to a person who retires before becoming eligible 
43.13 	for Social Security benefits and who has elected the optional payment as provided in section 
43.14 	354.35 must be treated as the sum of a period-certain retirement annuity and a life retirement 
43.15 	annuity for the purposes of any postretirement adjustment. The period-certain retirement 
43.16 	annuity plus the life retirement annuity must be the annuity amount payable until age 62, 
43.17 	65, or normal retirement age, as selected by the member at retirement, for an annuity amount 
43.18 	payable under section 354.35. A postretirement adjustment granted on the period-certain 
43.19 	retirement annuity must terminate when the period-certain retirement annuity terminates.
43.20 	(d) Members who retire on or after July 1, 2023, are entitled to an annual postretirement 
43.21 	adjustment of the member's retirement annuity, effective as of each January 1, beginning 
43.22 	with the year following the year in which the member attains normal retirement age, as 
43.23 	follows:
43.24 	(1) if a member has been receiving an annuity for at least 12 full months as of the June 
43.25 	30 of the calendar year immediately before the date of the adjustment, a postretirement 
43.26 	increase equal to the percentage specified in paragraph (a), clause (1), must be applied, 
43.27 	effective on January 1, to the member's monthly annuity; or
43.28 	(2) if a member has been receiving an annuity for at least one full month, but less than 
43.29 	12 full months as of the June 30 of the calendar year immediately before the date of 
43.30 	adjustment, a postretirement increase of 1/12 of the percentage specified in clause (1) for 
43.31 	each month that the member has been receiving an annuity must be applied, effective on 
43.32 	January 1, to the member's monthly annuity.
43.33 	If a member has been receiving an annuity for fewer than seven months as of the January 
43.34 	1 of the year following the year in which the member attains normal retirement age, a 
44.1 	postretirement adjustment shall be applied effective as of the next January 1. The amount 
44.2 	of the adjustment shall be determined under clause (1).
44.3 	(e) Paragraph (d) does not apply to members who retire under section 354.44, subdivision 
44.4 	6, paragraph (c), item (iii), or who retire when the member is at least age 62 and has at least 
44.5 	30 years of service under section 354.44, subdivision 6, paragraph (c), (d), (e), or (f), as 
44.6 	applicable.

44.7 	EFFECTIVE DATE. If an appropriation is made to the Teachers Retirement Association 
44.8 	in the 2017 legislative session for the employer contribution increase in this act, this section 
44.9 	is effective the day following final enactment.

44.10 	Sec. 11. Minnesota Statutes 2016, section 356.415, subdivision 1e, is amended to read:
44.11 		Subd. 1e.Annual postretirement adjustments; State Patrol retirement plan. (a) 
44.12 	Retirement annuity, disability benefit, or survivor benefit recipients of the State Patrol 
44.13 	retirement plan are entitled to aan annual postretirement adjustment annually on, effective 
44.14 	as of each January 1 if the definition of funding stability under paragraph (b) has not been 
44.15 	met, as follows:
44.16 	(1) a postretirement increase of one percent must be applied each year, effective on 
44.17 	January 1, to the monthly annuity or benefit of each annuitant or benefit recipient who has 
44.18 	been receiving an annuity or a benefit for at least 12 full months as of the June 30 of the 
44.19 	calendar year immediately before the adjustment; and
44.20 	(2) for each annuitant or benefit recipient who has been receiving an annuity or a benefit 
44.21 	for at least one full month, but less than 12 full months as of the June 30 of the calendar 
44.22 	year immediately before the adjustment, an annual postretirement increase of 1/12 of one 
44.23 	percent for each month that the person has been receiving an annuity or benefit must be 
44.24 	applied to the monthly annuity or benefit of each annuitant or benefit recipient.
44.25 	(b) Increases under paragraph (a) for the State Patrol retirement plan terminate on 
44.26 	December 31 of the calendar year in which two prior consecutive actuarial valuations for 
44.27 	the plan prepared by the approved actuary under sections 356.214 and 356.215 and the 
44.28 	standards for actuarial work promulgated by the Legislative Commission on Pensions and 
44.29 	Retirement indicates that the market value of assets of the retirement plan equals or exceeds 
44.30 	85 percent of the actuarial accrued liability of the retirement plan. Thereafter, increases 
44.31 	under paragraph (a) become effective again on the December 31 of the calendar year in 
44.32 	which the actuarial valuation, or prior consecutive actuarial valuations for the plan prepared 
44.33 	by the approved actuary under sections 356.214 and 356.215 and the standards for actuarial 
45.1 	work promulgated by the Legislative Commission on Pensions and Retirement indicates 
45.2 	that the market value of the assets of the retirement plan equals or is less than 80 percent 
45.3 	of the actuarial accrued liability of the retirement plan for two years, or equals or is less 
45.4 	than 75 percent of the actuarial accrued liability of the retirement plan for one year and 
45.5 	increases under paragraph (c) commence after that date.
45.6 	(c) Retirement annuity, disability benefit, or survivor benefit recipients of the State Patrol 
45.7 	retirement plan are entitled to a postretirement adjustment annually on January 1, as follows:
45.8 	(1) a postretirement increase of 1.5 percent must be applied each year, effective on 
45.9 	January 1, to the monthly annuity or benefit of each annuitant or benefit recipient who has 
45.10 	been receiving an annuity or a benefit for at least 12 full months as of the June 30 of the 
45.11 	calendar year immediately before the adjustment; and
45.12 	(2) for each annuitant or benefit recipient who has been receiving an annuity or a benefit 
45.13 	for at least one full month, but less than 12 full months as of the June 30 of the calendar 
45.14 	year immediately before the adjustment, an annual postretirement increase of 1/12 of 1.5 
45.15 	percent for each month that the person has been receiving an annuity or benefit must be 
45.16 	applied.
45.17 	(d) Increases under paragraph (c) for the State Patrol retirement plan terminate on 
45.18 	December 31 of the calendar year in which two prior consecutive actuarial valuations 
45.19 	prepared by the approved actuary under sections 356.214 and 356.215 and the standards 
45.20 	for actuarial work adopted by the Legislative Commission on Pensions and Retirement 
45.21 	indicates that the market value of assets of the retirement plan equals or exceeds 90 percent 
45.22 	of the actuarial accrued liability of the retirement plan and increases under subdivision 1 
45.23 	recommence after that date.
45.24 	(e)(b) An increase in annuity or benefit payments under this subdivision must be made 
45.25 	automatically unless written notice is filed by the annuitant or benefit recipient with the 
45.26 	executive director of the applicable covered retirement plan requesting that the increase not 
45.27 	be made.

45.28 	EFFECTIVE DATE. This section is effective July 1, 2017.

45.29 	Sec. 12. Minnesota Statutes 2016, section 356.415, subdivision 1f, is amended to read:
45.30 		Subd. 1f.Annual postretirement adjustments; Minnesota State Retirement System 
45.31 	judges retirement plan. (a) The increases provided under this subdivision are in lieu of 
45.32 	increases under subdivision 1 or 1a for retirement annuity, disability benefit, or survivor 
45.33 	benefit recipients of the judges retirement plan.
46.1 	(b)(a) Retirement annuity, disability benefit, or survivor benefit recipients of the judges 
46.2 	retirement plan are entitled to aan annual postretirement adjustment annually on , effective 
46.3 	as of each January 1,if the definition of funding stability under paragraph (b) has not been 
46.4 	met, as follows:
46.5 	(1) a postretirement increase of 1.75 percent must be applied each year, effective on 
46.6 	January 1, to the monthly annuity or benefit of each annuitant or benefit recipient who has 
46.7 	been receiving an annuity or a benefit for at least 12 full months as of the June 30 of the 
46.8 	calendar year immediately before the adjustment; and
46.9 	(2) for each annuitant or benefit recipient who has been receiving an annuity or a benefit 
46.10 	for at least one full month, but less than 12 full months as of the June 30 of the calendar 
46.11 	year immediately before the adjustment, an annual postretirement increase of 1/12 of 1.75 
46.12 	percent for each month that the person has been receiving an annuity or benefit must be 
46.13 	applied to the monthly annuity or benefit of each annuitant or benefit recipient.
46.14 	(c)(b) Increases under this subdivisionparagraph (a) terminate on December 31 of the 
46.15 	calendar year in which two prior consecutive actuarial valuations prepared by the approved 
46.16 	actuary under sections 356.214 and 356.215 and the standards for actuarial work promulgated 
46.17 	by the Legislative Commission on Pensions and Retirement indicates that the market value 
46.18 	of assets of the judges retirement plan equals or exceeds 70 percent of the actuarial accrued 
46.19 	liability of the retirement plan.and increases under subdivision 1 or 1a, whichever is 
46.20 	applicable,paragraph (c) begin on the January 1 next followingafter that date.
46.21 	(c) Retirement annuity, disability benefit, or survivor benefit recipients of the judges 
46.22 	retirement plan are entitled to a postretirement adjustment annually, effective as of each 
46.23 	January 1 if the definition of funding stability under paragraph (d) has not been met, as 
46.24 	follows:
46.25 	(1) a postretirement increase of two percent must be applied each year to the monthly 
46.26 	annuity or benefit of each annuitant or benefit recipient who has been receiving an annuity 
46.27 	or  a benefit for at least 12 full months as of the June 30 of the calendar year immediately 
46.28 	before the adjustment; and
46.29 	(2) for each annuitant or benefit recipient who has been receiving an annuity or a benefit 
46.30 	for at least one full month, but less than 12 full months as of the June 30 of the calendar 
46.31 	year immediately before the adjustment, an annual postretirement increase of 1/12 of two 
46.32 	percent for each month that the person has been receiving an annuity or benefit must be 
46.33 	applied to the monthly annuity or benefit amount of the annuitant or benefit recipient.
47.1 	(d) Increases under paragraph (c) terminate on December 31 of the calendar year in 
47.2 	which two prior consecutive actuarial valuations prepared by the approved actuary under 
47.3 	section 356.214 and the standards for actuarial work promulgated by the Legislative 
47.4 	Commission on Pensions and Retirement indicate that the market value of assets of the 
47.5 	judges retirement plan equals or exceeds 90 percent of the actuarial accrued liability of the 
47.6 	retirement plan and increases under paragraph (e) begin after that date.
47.7 	(e) Retirement annuity, disability benefit, or survivor benefit recipients of the judges 
47.8 	retirement plan are entitled to a postretirement adjustment annually, effective as of each 
47.9 	January 1, as follows:
47.10 	(1) a postretirement increase of 2.5 percent must be applied each year to the monthly 
47.11 	annuity or benefit of each annuitant or benefit recipient who has been receiving an annuity 
47.12 	or a benefit for at least 12 full months as of the June 30 of the calendar year immediately 
47.13 	before the adjustment; and
47.14 	(2) for each annuitant or benefit recipient who has been receiving an annuity or a benefit 
47.15 	for at least one full month, but less than 12 full months as of the June 30 of the calendar 
47.16 	year immediately before the adjustment, an annual postretirement increase of 1/12 of 2.5 
47.17 	percent for each month that the person has been receiving an annuity or benefit must be 
47.18 	applied to the monthly annuity or benefit amount of the annuitant or benefit recipient.
47.19 	(d)(f) An increase in annuity or benefit payments under this subdivision must be made 
47.20 	automatically unless written notice is filed by the annuitant or benefit recipient with the 
47.21 	executive director of the applicable covered retirement plan requesting that the increase not 
47.22 	be made.

47.23 	EFFECTIVE DATE. This section is effective July 1, 2017.

47.24 	Sec. 13. Minnesota Statutes 2016, section 356.415, is amended by adding a subdivision 
47.25 	to read:
47.26 		Subd. 1g.Annual postretirement adjustments; PERA local government correctional 
47.27 	retirement plan. (a) Retirement annuity, disability benefit, or survivor benefit recipients 
47.28 	of the public employees local government correctional service retirement plan are entitled 
47.29 	to an annual postretirement adjustment, effective as of each January 1 as follows:
47.30 	(1) a postretirement increase of 1.5 percent must be applied each year to the monthly 
47.31 	annuity or benefit of each annuitant or benefit recipient who has been receiving an annuity 
47.32 	or a benefit for at least 12 full months as of the June 30 of the calendar year immediately 
47.33 	before the adjustment; and
48.1 	(2) for each annuitant or benefit recipient who has been receiving an annuity or a benefit 
48.2 	for at least one full month, but less than 12 full months as of the June 30 of the calendar 
48.3 	year immediately before the adjustment, a postretirement increase of 1/12 of 1.5 percent 
48.4 	for each month that the person has been receiving an annuity or benefit must be applied to 
48.5 	the monthly annuity or benefit amount of the annuitant or benefit recipient.
48.6 	(b) An increase in annuity or benefit payments under this subdivision must be made 
48.7 	automatically unless written notice is filed by the annuitant or benefit recipient with the 
48.8 	executive director of the applicable covered retirement plan requesting that the increase not 
48.9 	be made.

48.10 	EFFECTIVE DATE. This section is effective July 1, 2017.

48.11 	Sec. 14. STUDY.
 48.12 	Before December 31, 2020, the Legislative Commission on Pensions and Retirement 
48.13 	must conduct a study of the rates of the postretirement adjustments for the covered plans 
48.14 	as defined in Minnesota Statutes, section 356.415, subdivision 2, and the St. Paul Teachers 
48.15 	Retirement Fund Association, and make recommendations regarding whether they should 
48.16 	be modified and whether a new methodology for determining postretirement adjustment 
48.17 	should be adopted. The Legislative Commission on Pensions and Retirement shall make a 
48.18 	determination based on the study during the 2021 legislative session.

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

48.20 	ARTICLE 6
48.21 	INTEREST RATE CONFORMING CHANGES

48.22 	Section 1. Minnesota Statutes 2016, section 3A.03, subdivision 2, is amended to read:
48.23 		Subd. 2.Refund.  (a) A former member who has made contributions under subdivision 
48.24 	1 and who is no longer a member of the legislature is entitled to receive, upon written 
48.25 	application to the executive director on a form prescribed by the executive director, a refund 
48.26 	from the general fund of all contributions credited to the member's account with interest 
48.27 	computed as provided in section 352.22, subdivision 2.
48.28 	(b) The refund of contributions as provided in paragraph (a) terminates all rights of a 
48.29 	former member of the legislature and the survivors of the former member under this chapter.
48.30 	(c) If the former member of the legislature again becomes a member of the legislature 
48.31 	after having taken a refund as provided in paragraph (a), the member is a member of the 
48.32 	unclassified employees retirement program of the Minnesota State Retirement System.
49.1 	(d) However, the member may reinstate the rights and credit for service previously 
49.2 	forfeited under this chapter if the member repays all refunds taken, plus interest at the rate 
49.3 	of 8.5 percent until June 30, 2015, and eight percent thereafterapplicable annual rate or 
49.4 	rates specified in section 356.59, subdivision 2, compounded annually, from the date on 
49.5 	which the refund was taken to the date on which the refund is repaid.
49.6 	(e) A member of the legislature who has received a refund from any of the retirement 
49.7 	plans specified in section 356.311, paragraph (b), may repay the refund to the respective 
49.8 	plan under such terms and conditions consistent with the law governing the retirement plan 
49.9 	if the law governing the plan permits the repayment of refunds. If the total amount to be 
49.10 	repaid, including principal and interest exceeds $2,000, repayment may be made in three 
49.11 	equal installments over a period of 18 months, with the interest accrued during the period 
49.12 	of the repayment added to the final installment.
49.13 	(e)(f) No person may be required to apply for or to accept a refund.

49.14 	EFFECTIVE DATE. This section is effective July 1, 2017.

49.15 	Sec. 2. Minnesota Statutes 2016, section 352.01, subdivision 13a, is amended to read:
49.16 		Subd. 13a.Reduced salary during period of workers' compensation. An employee 
49.17 	on leave of absence receiving temporary workers' compensation payments and a reduced 
49.18 	salary or no salary from the employer who is entitled to allowable service credit for the 
49.19 	period of absence, may make payment to the fund for the difference between salary received, 
49.20 	if any, and the salary the employee would normally receive if not on leave of absence during 
49.21 	the period. The employee shall pay an amount equal to the employee and employer 
49.22 	contribution rate under section 352.04, subdivisions 2 and 3, on the differential salary amount 
49.23 	for the period of the leave of absence.
49.24 	The employing department, at its option, may pay the employer amount on behalf of its 
49.25 	employees. Payment made under this subdivision must include interest at the rate of 8.5 
49.26 	percent until June 30, 2015, and eight percent thereafter per year applicable annual rate or 
49.27 	rates specified in section 356.59, subdivision 2, and must be completed within one year of 
49.28 	the return from leave of absence.

49.29 	EFFECTIVE DATE. This section is effective July 1, 2017.

49.30 	Sec. 3. Minnesota Statutes 2016, section 352.017, subdivision 2, is amended to read:
49.31 		Subd. 2.Purchase procedure. (a) An employee covered by a plan specified in this 
49.32 	chapter may purchase credit for allowable service in that plan for a period specified in 
50.1 	subdivision 1 if the employee makes a payment as specified in paragraph (b) or (c), whichever 
50.2 	applies. The employing unit, at its option, may pay the employer portion of the amount 
50.3 	specified in paragraph (b) on behalf of its employees.
50.4 	(b) If payment is received by the executive director within one year from the date the 
50.5 	employee returned to work following the authorized leave, the payment amount is equal to 
50.6 	the employee and employer contribution rates specified in law for the applicable plan at the 
50.7 	end of the leave period multiplied by the employee's hourly rate of salary on the date of 
50.8 	return from the leave of absence and by the days and months of the leave of absence for 
50.9 	which the employee is eligible for allowable service credit. The payment must include 
50.10 	compound interest at the monthly rate of 0.71 percent until June 30, 2015, and 0.667 percent 
50.11 	per month thereafterapplicable monthly rate or rates specified in section 356.59, subdivision 
50.12 	2, from the last day of the leave period until the last day of the month in which payment is 
50.13 	received. If payment is received by the executive director after one year, the payment amount 
50.14 	is the amount determined under section 356.551. Payment under this paragraph must be 
50.15 	made before the date of termination from public employment covered under this chapter.
50.16 	(c) If the employee terminates employment covered by this chapter during the leave or 
50.17 	following the leave rather than returning to covered employment, payment must be received 
50.18 	by the executive director within 30 days after the termination date. The payment amount is 
50.19 	equal to the employee and employer contribution rates specified in law for the applicable 
50.20 	plan on the day prior to the termination date, multiplied by the employee's hourly rate of 
50.21 	salary on that date and by the days and months of the leave of absence prior to termination.

50.22 	EFFECTIVE DATE. This section is effective July 1, 2017.

50.23 	Sec. 4. Minnesota Statutes 2016, section 352.04, subdivision 8, is amended to read:
50.24 		Subd. 8.Department required to pay omitted salary deductions. (a) If a department 
50.25 	fails to take deductions past due for a period of 60 days or less from an employee's salary 
50.26 	as provided in this section, those deductions must be taken on later payroll abstracts.
50.27 	(b) If a department fails to take deductions past due for a period in excess of 60 days 
50.28 	from an employee's salary as provided in this section, the department, and not the employee, 
50.29 	must pay on later payroll abstracts the employee and employer contributions and an amount 
50.30 	equivalent to 8.5 percent until June 30, 2015, and eight percent thereafter of the total amount 
50.31 	due in lieu of interest, or if the delay in payment exceeds one year, 8.5 percent until June 
50.32 	30, 2015, and eight percent thereafter compound annual interest at the applicable annual 
50.33 	rate or rates specified in section 356.59, subdivision 2, compounded annually, from the date 
51.1 	the employee and employer contributions should have been deducted to the date payment 
51.2 	of the total amount due is paid by the department.
51.3 	(c) If a department fails to take deductions past due for a period of 60 days or less and 
51.4 	the employee is no longer in state service so that the required deductions cannot be taken 
51.5 	from the salary of the employee, the department must nevertheless pay the required employer 
51.6 	contributions. If any department fails to take deductions past due for a period in excess of 
51.7 	60 days and the employee is no longer in state service, the omitted contributions must be 
51.8 	recovered under paragraph (b).
51.9 	(d) If an employee from whose salary required deductions were past due for a period of 
51.10 	60 days or less leaves state service before the payment of the omitted deductions and 
51.11 	subsequently returns to state service, the unpaid amount is considered the equivalent of a 
51.12 	refund. The employee accrues no right by reason of the unpaid amount, except that the 
51.13 	employee may pay the amount of omitted deductions as provided in section 352.23.

51.14 	EFFECTIVE DATE. This section is effective July 1, 2017.

51.15 	Sec. 5. Minnesota Statutes 2016, section 352.04, subdivision 9, is amended to read:
51.16 		Subd. 9.Erroneous deductions, canceled warrants. (a) Deductions taken from the 
51.17 	salary of an employee for the retirement fund in excess of required amounts must, upon 
51.18 	discovery and verification by the department making the deduction, be refunded to the 
51.19 	employee.
51.20 	(b) If a deduction for the retirement fund is taken from a salary warrant or check, and 
51.21 	the check is canceled or the amount of the warrant or check returned to the funds of the 
51.22 	department making the payment, the sum deducted, or the part of it required to adjust the 
51.23 	deductions, must be refunded to the department or institution if the department applies for 
51.24 	the refund on a form furnished by the director. The department's payments must likewise 
51.25 	be refunded to the department.
51.26 	(c) If erroneous employee deductions and employer contributions are caused by an error 
51.27 	in plan coverage involving the plan and any other plans specified in section 356.99, that 
51.28 	section applies. If the employee should have been covered by the plan governed by chapter 
51.29 	352D, 353D, 354B, or 354D, the employee deductions and employer contributions taken 
51.30 	in error must be directly transferred to the applicable employee's account in the correct 
51.31 	retirement plan, with interest at the rate of 0.71 percent per month until June 30, 2015, and 
51.32 	0.667 percent per month thereafter applicable monthly rate or rates specified in section 
51.33 	356.59, subdivision 2, compounded annually, from the first day of the month following the 
52.1 	month in which coverage should have commenced in the correct defined contribution plan 
52.2 	until the end of the month in which the transfer occurs.

52.3 	EFFECTIVE DATE. This section is effective July 1, 2017.

52.4 	Sec. 6. Minnesota Statutes 2016, section 352.23, is amended to read:
52.5 	352.23 TERMINATION OF RIGHTS; REPAYMENT OF REFUND.
52.6 	(a) When any employee accepts a refund as provided in section 352.22, all existing 
52.7 	allowable service credits and all rights and benefits to which the employee was entitled 
52.8 	before accepting the refund terminate.
52.9 	(b) Terminated service credits and rights must not again be restored until the former 
52.10 	employee acquires at least six months of allowable service credit after taking the last refund. 
52.11 	In that event, the employee may repay all refunds previously taken from the retirement fund.
52.12 	(c) Repayment of refunds entitles the employee only to credit for service covered by (1) 
52.13 	salary deductions; (2) payments previously made in lieu of salary deductions as permitted 
52.14 	under law in effect when the payment in lieu of deductions was made; (3) payments made 
52.15 	to obtain credit for service as permitted by laws in effect when payment was made; and (4) 
52.16 	allowable service previously credited while receiving temporary workers' compensation as 
52.17 	provided in section 352.01, subdivision 11, paragraph (a), clause (3).
52.18 	(d) Payments under this section for repayment of refunds are to be paid with interest at 
52.19 	the rate of 8.5 percent until June 30, 2015, and eight percent thereafterapplicable annual 
52.20 	rate or rates specified in section 356.59, subdivision 2, compounded annually, from the date 
52.21 	the refund was taken until the date the refund is repaid. They may be paid in a lump sum 
52.22 	or by payroll deduction in the manner provided in section 352.04. Payment may be made 
52.23 	in a lump sum up to six months after termination from service.

52.24 	EFFECTIVE DATE. This section is effective July 1, 2017.

52.25 	Sec. 7. Minnesota Statutes 2016, section 352.27, is amended to read:
52.26 	352.27 CREDIT FOR BREAK IN SERVICE TO PROVIDE UNIFORMED 
52.27 	SERVICE.
52.28 	(a) An employee who is absent from employment by reason of service in the uniformed 
52.29 	services, as defined in United States Code, title 38, section 4303(13), and who returns to 
52.30 	state service upon discharge from service in the uniformed service within the time frames 
52.31 	required in United States Code, title 38, section 4312(e), may obtain service credit for the 
53.1 	period of the uniformed service as further specified in this section, provided that the employee 
53.2 	did not separate from uniformed service with a dishonorable or bad conduct discharge or 
53.3 	under other than honorable conditions.
53.4 	(b) The employee may obtain credit by paying into the fund an equivalent employee 
53.5 	contribution based upon the contribution rate or rates in effect at the time that the uniformed 
53.6 	service was performed multiplied by the full and fractional years being purchased and 
53.7 	applied to the annual salary rate. The annual salary rate is the average annual salary during 
53.8 	the purchase period that the employee would have received if the employee had continued 
53.9 	to be employed in covered employment rather than to provide uniformed service, or, if the 
53.10 	determination of that rate is not reasonably certain, the annual salary rate is the employee's 
53.11 	average salary rate during the 12-month period of covered employment rendered immediately 
53.12 	preceding the period of the uniformed service.
53.13 	(c) The equivalent employer contribution and, if applicable, the equivalent additional 
53.14 	employer contribution provided in this chapter must be paid by the department employing 
53.15 	the employee from funds available to the department at the time and in the manner provided 
53.16 	in this chapter, using the employer and additional employer contribution rate or rates in 
53.17 	effect at the time that the uniformed service was performed, applied to the same annual 
53.18 	salary rate or rates used to compute the equivalent employee contribution.
53.19 	(d) If the employee equivalent contributions provided in this section are not paid in full, 
53.20 	the employee's allowable service credit must be prorated by multiplying the full and fractional 
53.21 	number of years of uniformed service eligible for purchase by the ratio obtained by dividing 
53.22 	the total employee contribution received by the total employee contribution otherwise 
53.23 	required under this section.
53.24 	(e) To receive service credit under this section, the contributions specified in this section 
53.25 	must be transmitted to the Minnesota State Retirement System during the period which 
53.26 	begins with the date on which the individual returns to state service and which has a duration 
53.27 	of three times the length of the uniformed service period, but not to exceed five years. If 
53.28 	the determined payment period is less than one year, the contributions required under this 
53.29 	section to receive service credit may be made within one year of the discharge date.
53.30 	(f) The amount of service credit obtainable under this section may not exceed five years 
53.31 	unless a longer purchase period is required under United States Code, title 38, section 4312.
53.32 	(g) The employing unit shall pay interest on all equivalent employee and employer 
53.33 	contribution amounts payable under this section. Interest must be computed at the rate of 
53.34 	8.5 percent until June 30, 2015, and eight percent thereafterat the applicable annual rate or 
54.1 	rates specified in section 356.59, subdivision 2, compounded annually, from the end of each 
54.2 	fiscal year of the leave or the break in service to the end of the month in which the payment 
54.3 	is received.

54.4 	EFFECTIVE DATE. This section is effective July 1, 2017.

54.5 	Sec. 8. Minnesota Statutes 2016, section 352.955, subdivision 3, is amended to read:
54.6 		Subd. 3.Payment of additional equivalent contributions. (a) An eligible employee 
54.7 	who is transferred to plan coverage and who elects to transfer past service credit under this 
54.8 	section must pay an additional member contribution for that prior service period. The 
54.9 	additional member contribution is the amount computed under paragraph (b), plus the greater 
54.10 	of the amount computed under paragraph (c), or 40 percent of the unfunded actuarial accrued 
54.11 	liability attributable to the past service credit transfer.
54.12 	(b) The executive director shall compute, for the most recent 12 months of service credit 
54.13 	eligible for transfer, or for the entire period eligible for transfer if less than 12 months, the 
54.14 	difference between the employee contribution rate or rates for the general state employees 
54.15 	retirement plan and the employee contribution rate or rates for the correctional state 
54.16 	employees retirement plan applied to the eligible employee's salary during that transfer 
54.17 	period, plus compound interest at the applicable monthly rate of 0.71 percent until June 30, 
54.18 	2015, and 0.667 percent per month thereafter or rates specified in section 356.59, subdivision 
54.19 	2.
54.20 	(c) The executive director shall compute, for any service credit being transferred on 
54.21 	behalf of the eligible employee and not included under paragraph (b), the difference between 
54.22 	the employee contribution rate or rates for the general state employees retirement plan and 
54.23 	the employee contribution rate or rates for the correctional state employees retirement plan 
54.24 	applied to the eligible employee's salary during that transfer period, plus compound interest 
54.25 	at the monthly rate of 0.71 percent until June 30, 2015, and 0.667 percent per month 
54.26 	thereafterapplicable monthly rate or rates specified in section 356.59, subdivision 2.
54.27 	(d) The executive director shall compute an amount using the process specified in 
54.28 	paragraph (b), but based on differences in employer contribution rates between the general 
54.29 	state employees retirement plan and the correctional state employees retirement plan rather 
54.30 	than employee contribution rates.
54.31 	(e) The executive director shall compute an amount using the process specified in 
54.32 	paragraph (c), but based on differences in employer contribution rates between the general 
55.1 	state employees retirement plan and the correctional state employees retirement plan rather 
55.2 	than employee contribution rates.
55.3 	(f) The additional equivalent member contribution under this subdivision must be paid 
55.4 	in a lump sum. Payment must accompany the election to transfer the prior service credit. 
55.5 	No transfer election or additional equivalent member contribution payment may be made 
55.6 	by a person or accepted by the executive director after the one year anniversary date of the 
55.7 	effective date of the retirement coverage transfer, or the date on which the eligible employee 
55.8 	terminates state employment, whichever is earlier.
55.9 	(g) If an eligible employee elects to transfer past service credit under this section and 
55.10 	pays the additional equivalent member contribution amount under paragraph (a), the 
55.11 	applicable department shall pay an additional equivalent employer contribution amount. 
55.12 	The additional employer contribution is the amount computed under paragraph (d), plus the 
55.13 	greater of the amount computed under paragraph (e), or 60 percent of the unfunded actuarial 
55.14 	accrued liability attributable to the past service credit transfer.
55.15 	(h) The unfunded actuarial accrued liability attributable to the past service credit transfer 
55.16 	is the present value of the benefit obtained by the transfer of the service credit to the 
55.17 	correctional state employees retirement plan reduced by the amount of the asset transfer 
55.18 	under subdivision 4, by the amount of the member contribution equivalent payment computed 
55.19 	under paragraph (b), and by the amount of the employer contribution equivalent payment 
55.20 	computed under paragraph (d).
55.21 	(i) The additional equivalent employer contribution under this subdivision must be paid 
55.22 	in a lump sum and must be paid within 30 days of the date on which the executive director 
55.23 	of the Minnesota State Retirement System certifies to the applicable department that the 
55.24 	employee paid the additional equivalent member contribution.

55.25 	EFFECTIVE DATE. This section is effective July 1, 2017.

55.26 	Sec. 9. Minnesota Statutes 2016, section 352B.013, subdivision 2, is amended to read:
55.27 		Subd. 2.Purchase procedure. (a) An employee covered by the plan specified in this 
55.28 	chapter may purchase credit for allowable service in the plan for a period specified in 
55.29 	subdivision 1 if the employee makes a payment as specified in paragraph (b) or (c), whichever 
55.30 	applies. The employing unit, at its option, may pay the employer portion of the amount 
55.31 	specified in paragraph (b) on behalf of its employees.
55.32 	(b) If payment is received by the executive director within one year from the date the 
55.33 	employee returned to work following the authorized leave, the payment amount is equal to 
56.1 	the employee and employer contribution rates specified in section 352B.02 at the end of 
56.2 	the leave period multiplied by the employee's hourly rate of salary on the date of return 
56.3 	from the leave of absence and by the days and months of the leave of absence for which 
56.4 	the employee is eligible for allowable service credit. The payment must include compound 
56.5 	interest at the monthly rate of 0.71 percent until June 30, 2015, and 0.667 percent per month 
56.6 	thereafterapplicable monthly rate or rates specified in section 356.59, subdivision 2, from 
56.7 	the last day of the leave period until the last day of the month in which payment is received. 
56.8 	If payment is received by the executive director after one year from the date the employee 
56.9 	returned to work following the authorized leave, the payment amount is the amount 
56.10 	determined under section 356.551. Payment under this paragraph must be made before the 
56.11 	date of termination from public employment covered under this chapter.
56.12 	(c) If the employee terminates employment covered by this chapter during the leave or 
56.13 	following the leave rather than returning to covered employment, payment must be received 
56.14 	by the executive director within 30 days after the termination date. The payment amount is 
56.15 	equal to the employee and employer contribution rates specified in section 352B.02 on the 
56.16 	day prior to the termination date, multiplied by the employee's hourly rate of salary on that 
56.17 	date and by the days and months of the leave of absence prior to termination.

56.18 	EFFECTIVE DATE. This section is effective July 1, 2017.

56.19 	Sec. 10. Minnesota Statutes 2016, section 352B.085, is amended to read:
56.20 	352B.085 SERVICE CREDIT FOR CERTAIN DISABILITY LEAVES OF 
56.21 	ABSENCE.
56.22 	A member on leave of absence receiving temporary workers' compensation payments 
56.23 	and a reduced salary or no salary from the employer who is entitled to allowable service 
56.24 	credit for the period of absence under section 352B.011, subdivision 3, paragraph (b), may 
56.25 	make payment to the fund for the difference between salary received, if any, and the salary 
56.26 	that the member would normally receive if the member was not on leave of absence during 
56.27 	the period. The member shall pay an amount equal to the member and employer contribution 
56.28 	rate under section 352B.02, subdivisions 1b and 1c, on the differential salary amount for 
56.29 	the period of the leave of absence. The employing department, at its option, may pay the 
56.30 	employer amount on behalf of the member. Payment made under this subdivision must 
56.31 	include interest at the rate of 8.5 percent until June 30, 2015, and eight percent thereafter 
56.32 	per year applicable annual rate or rates specified in section 356.59, subdivision 2, and must 
56.33 	be completed within one year of the member's return from the leave of absence.

56.34 	EFFECTIVE DATE. This section is effective July 1, 2017.

57.1 	Sec. 11. Minnesota Statutes 2016, section 352B.086, is amended to read:
57.2 	352B.086 SERVICE CREDIT FOR UNIFORMED SERVICE.
57.3 	(a) A member who is absent from employment by reason of service in the uniformed 
57.4 	services, as defined in United States Code, title 38, section 4303(13), and who returns to 
57.5 	state employment in a position covered by the plan upon discharge from service in the 
57.6 	uniformed services within the time frame required in United States Code, title 38, section 
57.7 	4312(e), may obtain service credit for the period of the uniformed service, provided that 
57.8 	the member did not separate from uniformed service with a dishonorable or bad conduct 
57.9 	discharge or under other than honorable conditions.
57.10 	(b) The member may obtain credit by paying into the fund an equivalent member 
57.11 	contribution based on the member contribution rate or rates in effect at the time that the 
57.12 	uniformed service was performed multiplied by the full and fractional years being purchased 
57.13 	and applied to the annual salary rate. The annual salary rate is the average annual salary 
57.14 	during the purchase period that the member would have received if the member had continued 
57.15 	to provide employment services to the state rather than to provide uniformed service, or if 
57.16 	the determination of that rate is not reasonably certain, the annual salary rate is the member's 
57.17 	average salary rate during the 12-month period of covered employment rendered immediately 
57.18 	preceding the purchase period.
57.19 	(c) The equivalent employer contribution and, if applicable, the equivalent employer 
57.20 	additional contribution, must be paid by the employing unit, using the employer and employer 
57.21 	additional contribution rate or rates in effect at the time that the uniformed service was 
57.22 	performed, applied to the same annual salary rate or rates used to compute the equivalent 
57.23 	member contribution.
57.24 	(d) If the member equivalent contributions provided for in this section are not paid in 
57.25 	full, the member's allowable service credit must be prorated by multiplying the full and 
57.26 	fractional number of years of uniformed service eligible for purchase by the ratio obtained 
57.27 	by dividing the total member contributions received by the total member contributions 
57.28 	otherwise required under this section.
57.29 	(e) To receive allowable service credit under this section, the contributions specified in 
57.30 	this section must be transmitted to the fund during the period which begins with the date 
57.31 	on which the individual returns to state employment covered by the plan and which has a 
57.32 	duration of three times the length of the uniformed service period, but not to exceed five 
57.33 	years. If the determined payment period is calculated to be less than one year, the 
58.1 	contributions required under this section to receive service credit must be transmitted to the 
58.2 	fund within one year from the discharge date.
58.3 	(f) The amount of allowable service credit obtainable under this section may not exceed 
58.4 	five years, unless a longer purchase period is required under United States Code, title 38, 
58.5 	section 4312.
58.6 	(g) The employing unit shall pay interest on all equivalent member and employer 
58.7 	contribution amounts payable under this section. Interest must be computed at the rate of 
58.8 	8.5 percent until June 30, 2015, and eight percent thereafterapplicable annual rate or rates 
58.9 	specified in section 356.59, subdivision 2, compounded annually, from the end of each 
58.10 	fiscal year of the leave or break in service to the end of the month in which payment is 
58.11 	received.

58.12 	EFFECTIVE DATE. This section is effective July 1, 2017.

58.13 	Sec. 12. Minnesota Statutes 2016, section 352B.11, subdivision 4, is amended to read:
58.14 		Subd. 4.Reentry into state service; refund repayment. (a) When a former member, 
58.15 	who has become separated from state service that entitled the member to membership and 
58.16 	has received a refund of retirement payments, reenters the state service in a position that 
58.17 	entitles the member to membership, that member shall receive credit for the period of prior 
58.18 	allowable state service if the member repays into the fund the amount of the refund, plus 
58.19 	interest on it at the rate of 8.5 percent until June 30, 2015, and eight percent thereafterat 
58.20 	the applicable annual rate or rates specified in section 356.59, subdivision 2, compounded 
58.21 	annually, at any time before subsequent retirement. Repayment may be made in installments 
58.22 	or in a lump sum.
58.23 	(b) A person who has received a refund from the State Patrol retirement fund who is a 
58.24 	member of a public retirement system included in section 356.311 may repay the refund 
58.25 	with interest to the State Patrol retirement fund as provided in paragraph (a).

58.26 	EFFECTIVE DATE. This section is effective July 1, 2017.

58.27 	Sec. 13. Minnesota Statutes 2016, section 352D.05, subdivision 4, is amended to read:
58.28 		Subd. 4.Repayment of refund. (a) A participant in the unclassified program may repay 
58.29 	regular refunds taken under section 352.22, as provided in section 352.23.
58.30 	(b) A participant in the unclassified program or an employee covered by the general 
58.31 	employees retirement plan who has withdrawn the value of the total shares may repay the 
58.32 	refund taken and thereupon restore the service credit, rights and benefits forfeited by paying 
59.1 	into the fund the amount refunded plus interest at the rate of 8.5 percent until June 30, 2015, 
59.2 	and eight percent thereafterapplicable annual rate or rates specified in section 356.59, 
59.3 	subdivision 2, compounded annually, from the date that the refund was taken until the date 
59.4 	that the refund is repaid. If the participant had withdrawn only the employee shares as 
59.5 	permitted under prior laws, repayment must be pro rata.
59.6 	(c) Except as provided in section 356.441, the repayment of a refund under this section 
59.7 	must be made in a lump sum.

59.8 	EFFECTIVE DATE. This section is effective July 1, 2017.

59.9 	Sec. 14. Minnesota Statutes 2016, section 352D.11, subdivision 2, is amended to read:
59.10 		Subd. 2.Payments by employee. An employee entitled to purchase service credit may 
59.11 	make the purchase by paying to the state retirement system an amount equal to the current 
59.12 	employee contribution rate in effect for the state retirement system applied to the current 
59.13 	or final salary rate multiplied by the months and days of prior temporary, intermittent, or 
59.14 	contract legislative service. Payment shall be made in one lump sum unless the executive 
59.15 	director of the state retirement system agrees to accept payment in installments over a period 
59.16 	of not more than three years from the date of the agreement. Installment payments shall be 
59.17 	charged interest at the rate of 8.5 percent until June 30, 2015, and eight percent thereafter
59.18 	applicable annual rate or rates specified in section 356.59, subdivision 2, compounded 
59.19 	annually.

59.20 	EFFECTIVE DATE. This section is effective July 1, 2017.

59.21 	Sec. 15. Minnesota Statutes 2016, section 352D.12, is amended to read:
59.22 	352D.12 TRANSFER OF PRIOR SERVICE CONTRIBUTIONS.
59.23 	(a) An employee who is a participant in the unclassified program and who has prior 
59.24 	service credit in a covered plan under chapter 352, 353, 354, 354A, or 422A may, within 
59.25 	the time limits specified in this section, elect to transfer to the unclassified program prior 
59.26 	service contributions to one or more of those plans.
59.27 	(b) For participants with prior service credit in a plan governed by chapter 352, 353, 
59.28 	354, 354A, or 422A, "prior service contributions" means the accumulated employee and 
59.29 	equal employer contributions with interest at the rate of 8.5 percent until June 30, 2015, 
59.30 	and eight percent thereafterapplicable annual rate or rates specified in section 356.59, 
59.31 	subdivision 2, compounded annually, based on fiscal year balances.
60.1 	(c) If a participant has taken a refund from a retirement plan listed in this section, the 
60.2 	participant may repay the refund to that plan, notwithstanding any restrictions on repayment 
60.3 	to that plan, plus 8.5 percent interest until June 30, 2015, and eight percent interest thereafter
60.4 	with interest at the applicable annual rate or rates specified in section 356.59, subdivision 
60.5 	2, compounded annually, and have the accumulated employee and equal employer 
60.6 	contributions transferred to the unclassified program with interest at the rate of 8.5 percent 
60.7 	until June 30, 2015, and eight percent thereafter compounded annually based on fiscal year 
60.8 	balances. If a person repays a refund and subsequently elects to have the money transferred 
60.9 	to the unclassified program, the repayment amount, including interest, is added to the fiscal 
60.10 	year balance in the year which the repayment was made.
60.11 	(d) A participant electing to transfer prior service contributions credited to a retirement 
60.12 	plan governed by chapter 352, 353, 354, 354A, or 422A as provided under this section must 
60.13 	complete a written application for the transfer and repay any refund within one year of the 
60.14 	commencement of the employee's participation in the unclassified program.

60.15 	EFFECTIVE DATE. This section is effective July 1, 2017.

60.16 	Sec. 16. Minnesota Statutes 2016, section 353.01, subdivision 16, is amended to read:
60.17 		Subd. 16.Allowable service; limits and computation. (a) "Allowable service" means:
60.18 	(1) service during years of actual membership in the course of which employee deductions 
60.19 	were withheld from salary and contributions were made at the applicable rates under section 
60.20 	353.27, 353.65, or 353E.03;
60.21 	(2) periods of service covered by payments in lieu of salary deductions under sections 
60.22 	353.27, subdivisions 12 and 12a, and 353.35;
60.23 	(3) service in years during which the public employee was not a member but for which 
60.24 	the member later elected, while a member, to obtain credit by making payments to the fund 
60.25 	as permitted by any law then in effect;
60.26 	(4) a period of authorized leave of absence during which the employee receives pay as 
60.27 	specified in subdivision 10, paragraph (a), clause (4) or (5), from which deductions for 
60.28 	employee contributions are made, deposited, and credited to the fund;
60.29 	(5) a period of authorized leave of absence without pay, or with pay that is not included 
60.30 	in the definition of salary under subdivision 10, paragraph (a), clause (4) or (5), for which 
60.31 	salary deductions are not authorized, and for which a member obtained service credit for 
60.32 	up to 12 months of the authorized leave period by payment under section 353.0161 or 
60.33 	353.0162, to the fund made in place of salary deductions;
61.1 	(6) a periodic, repetitive leave that is offered to all employees of a governmental 
61.2 	subdivision. The leave program may not exceed 208 hours per annual normal work cycle 
61.3 	as certified to the association by the employer. A participating member obtains service credit 
61.4 	by making employee contributions in an amount or amounts based on the member's average 
61.5 	salary, excluding overtime pay, that would have been paid if the leave had not been taken. 
61.6 	The employer shall pay the employer and additional employer contributions on behalf of 
61.7 	the participating member. The employee and the employer are responsible to pay interest 
61.8 	on their respective shares at the rate of 8.5 percent until June 30, 2015, and eight percent 
61.9 	thereafter applicable rate or rates specified in section 356.59, subdivision 3, compounded 
61.10 	annually, from the end of the normal cycle until full payment is made. An employer shall 
61.11 	also make the employer and additional employer contributions, plus 8.5 percent interest 
61.12 	until June 30, 2015, and eight percent interest thereafter at the applicable rate or rates 
61.13 	specified in section 356.59, subdivision 3, compounded annually, on behalf of an employee 
61.14 	who makes employee contributions but terminates public service. The employee contributions 
61.15 	must be made within one year after the end of the annual normal working cycle or within 
61.16 	30 days after termination of public service, whichever is sooner. The executive director 
61.17 	shall prescribe the manner and forms to be used by a governmental subdivision in 
61.18 	administering a periodic, repetitive leave. Upon payment, the member must be granted 
61.19 	allowable service credit for the purchased period;
61.20 	(7) an authorized temporary or seasonal layoff under subdivision 12, limited to three 
61.21 	months allowable service per authorized temporary or seasonal layoff in one calendar year. 
61.22 	An employee who has received the maximum service credit allowed for an authorized 
61.23 	temporary or seasonal layoff must return to public service and must obtain a minimum of 
61.24 	three months of allowable service subsequent to the layoff in order to receive allowable 
61.25 	service for a subsequent authorized temporary or seasonal layoff;
61.26 	(8) a period during which a member is absent from employment by a governmental 
61.27 	subdivision by reason of service in the uniformed services, as defined in United States Code, 
61.28 	title 38, section 4303(13), if the member returns to public service with the same governmental 
61.29 	subdivision upon discharge from service in the uniformed service within the time frames 
61.30 	required under United States Code, title 38, section 4312(e), provided that the member did 
61.31 	not separate from uniformed service with a dishonorable or bad conduct discharge or under 
61.32 	other than honorable conditions. The service must be credited if the member pays into the 
61.33 	fund equivalent employee contributions based upon the contribution rate or rates in effect 
61.34 	at the time that the uniformed service was performed multiplied by the full and fractional 
61.35 	years being purchased and applied to the annual salary rate. The annual salary rate is the 
62.1 	average annual salary during the purchase period that the member would have received if 
62.2 	the member had continued to be employed in covered employment rather than to provide 
62.3 	uniformed service, or, if the determination of that rate is not reasonably certain, the annual 
62.4 	salary rate is the member's average salary rate during the 12-month period of covered 
62.5 	employment rendered immediately preceding the period of the uniformed service. Payment 
62.6 	of the member equivalent contributions must be made during a period that begins with the 
62.7 	date on which the individual returns to public employment and that is three times the length 
62.8 	of the military leave period, or within five years of the date of discharge from the military 
62.9 	service, whichever is less. If the determined payment period is less than one year, the 
62.10 	contributions required under this clause to receive service credit may be made within one 
62.11 	year of the discharge date. Payment may not be accepted following 30 days after termination 
62.12 	of public service under subdivision 11a. If the member equivalent contributions provided 
62.13 	for in this clause are not paid in full, the member's allowable service credit must be prorated 
62.14 	by multiplying the full and fractional number of years of uniformed service eligible for 
62.15 	purchase by the ratio obtained by dividing the total member contributions received by the 
62.16 	total member contributions otherwise required under this clause. The equivalent employer 
62.17 	contribution, and, if applicable, the equivalent additional employer contribution must be 
62.18 	paid by the governmental subdivision employing the member if the member makes the 
62.19 	equivalent employee contributions. The employer payments must be made from funds 
62.20 	available to the employing unit, using the employer and additional employer contribution 
62.21 	rate or rates in effect at the time that the uniformed service was performed, applied to the 
62.22 	same annual salary rate or rates used to compute the equivalent member contribution. The 
62.23 	governmental subdivision involved may appropriate money for those payments. The amount 
62.24 	of service credit obtainable under this section may not exceed five years unless a longer 
62.25 	purchase period is required under United States Code, title 38, section 4312. The employing 
62.26 	unit shall pay interest on all equivalent member and employer contribution amounts payable 
62.27 	under this clause. Interest must be computed at the rate of 8.5 percent until June 30, 2015, 
62.28 	and eight percent thereafter applicable rate or rates specified in section 356.59, subdivision 
62.29 	3, compounded annually, from the end of each fiscal year of the leave or the break in service 
62.30 	to the end of the month in which the payment is received. Upon payment, the employee 
62.31 	must be granted allowable service credit for the purchased period; or
62.32 	(9) a period specified under section 353.0162.
62.33 	(b) No member may receive more than 12 months of allowable service credit in a year 
62.34 	either for vesting purposes or for benefit calculation purposes.
63.1 	(c) For an active member who was an active member of the former Minneapolis 
63.2 	Firefighters Relief Association on December 29, 2011, "allowable service" is the period of 
63.3 	service credited by the Minneapolis Firefighters Relief Association as reflected in the 
63.4 	transferred records of the association up to December 30, 2011, and the period of service 
63.5 	credited under paragraph (a), clause (1), after December 30, 2011. For an active member 
63.6 	who was an active member of the former Minneapolis Police Relief Association on December 
63.7 	29, 2011, "allowable service" is the period of service credited by the Minneapolis Police 
63.8 	Relief Association as reflected in the transferred records of the association up to December 
63.9 	30, 2011, and the period of service credited under paragraph (a), clause (1), after December 
63.10 	30, 2011.

63.11 	EFFECTIVE DATE. This section is effective July 1, 2017.

63.12 	Sec. 17. Minnesota Statutes 2016, section 353.0162, is amended to read:
63.13 	353.0162 REDUCED SALARY PERIODS SALARY CREDIT PURCHASE.
63.14 	(a) A member may purchase additional salary credit for a period specified in this section.
63.15 	(b) The applicable period is a period during which the member is receiving a reduced 
63.16 	salary from the employer while the member is:
63.17 	(1) receiving temporary workers' compensation payments related to the member's service 
63.18 	to the public employer;
63.19 	(2) on an authorized leave of absence; or
63.20 	(3) on an authorized partial paid leave of absence as a result of a budgetary or salary 
63.21 	savings program offered or mandated by a governmental subdivision.
63.22 	(c) The differential salary amount is the difference between the average monthly salary 
63.23 	received by the member during the period of reduced salary under this section and the 
63.24 	average monthly salary of the member, excluding overtime, on which contributions to the 
63.25 	applicable plan were made during the period of the last six months of covered employment 
63.26 	occurring immediately before the period of reduced salary, applied to the member's normal 
63.27 	employment period, measured in hours or otherwise, as applicable.
63.28 	(d) To receive eligible salary credit, the member shall pay an amount equal to:
63.29 	(1) the applicable employee contribution rate under section 353.27, subdivision 2; 353.65, 
63.30 	subdivision 2; or 353E.03, subdivision 1, as applicable, multiplied by the differential salary 
63.31 	amount;
64.1 	(2) plus an employer equivalent payment equal to the applicable employer contribution 
64.2 	rate in section 353.27, subdivision 3; 353.65, subdivision 3; or 353E.03, subdivision 2, as 
64.3 	applicable, multiplied by the differential salary amount;
64.4 	(3) plus, if applicable, an equivalent employer additional amount equal to the additional 
64.5 	employer contribution rate in section 353.27, subdivision 3a, multiplied by the differential 
64.6 	salary amount.
64.7 	(e) The employer, by appropriate action of its governing body and documented in its 
64.8 	official records, may pay the employer equivalent contributions and, as applicable, the 
64.9 	equivalent employer additional contributions on behalf of the member.
64.10 	(f) Payment under this section must include interest on the contribution amount or 
64.11 	amounts, whichever applies, at an 8.5 percent annual rate until June 30, 2015, and at an 
64.12 	eight percent annual rate thereafter the applicable rate or rates specified in section 356.59, 
64.13 	subdivision 3, compounded annually, prorated for applicablethe number of months, if less 
64.14 	than 12 months, from the date on which the period of reduced salary specified under this 
64.15 	section terminates to the date on which the payment or payments are received by the 
64.16 	executive director. Payment under this section must be completed within the earlier of 30 
64.17 	days from termination of public service by the employee under section 353.01, subdivision 
64.18 	11a, or one year after the termination of the period specified in paragraph (b), as further 
64.19 	restricted under this section.
64.20 	(g) The period for which additional allowable salary credit may be purchased is limited 
64.21 	to the period during which the person receives temporary workers' compensation payments 
64.22 	or for those business years in which the governmental subdivision offers or mandates a 
64.23 	budget or salary savings program, as certified to the executive director by a resolution of 
64.24 	the governing body of the governmental subdivision. For an authorized leave of absence, 
64.25 	the period for which allowable salary credit may be purchased may not exceed 12 months 
64.26 	of authorized leave.
64.27 	(h) To purchase salary credit for a subsequent period of temporary workers' compensation 
64.28 	benefits or subsequent authorized medical leave of absence, the member must return to 
64.29 	public service and render a minimum of three months of allowable service.

64.30 	EFFECTIVE DATE. This section is effective July 1, 2017.

64.31 	Sec. 18. Minnesota Statutes 2016, section 353.27, subdivision 3c, is amended to read:
64.32 		Subd. 3c.Former MERF members; member and employer contributions. (a) For 
64.33 	the period July 1, 2015, through December 31, 2031, the member contributions for former 
65.1 	members of the Minneapolis Employees Retirement Fund and by the former Minneapolis 
65.2 	Employees Retirement Fund-covered employing units are governed by this subdivision.
65.3 	(b) The member contribution for a public employee who was a member of the former 
65.4 	Minneapolis Employees Retirement Fund on June 29, 2010, is 9.75 percent of the salary of 
65.5 	the employee.
65.6 	(c) The employer regular contribution with respect to a public employee who was a 
65.7 	member of the former Minneapolis Employees Retirement Fund on June 29, 2010, is 9.75 
65.8 	percent of the salary of the employee.
65.9 	(d) For calendar years 2015 and 2016, the employer supplemental contribution is the 
65.10 	employing unit's share of $31,000,000. For calendar years 2017 through 2031, the employer 
65.11 	supplemental contribution is the employing unit's share of $21,000,000.
65.12 	(e) Each employing unit's share under paragraph (d) is the amount determined from an 
65.13 	allocation between each employing unit in the portion equal to the unit's employer 
65.14 	supplemental contribution paid or payable under Minnesota Statutes 2012, section 353.50, 
65.15 	during calendar year 2014.
65.16 	(f) The employer supplemental contribution amount under paragraph (d) for calendar 
65.17 	year 2015 must be invoiced by the executive director of the Public Employees Retirement 
65.18 	Association by July 1, 2015. The calendar year 2015 payment is payable in a single amount 
65.19 	on or before September 30, 2015. For subsequent calendar years, the employer supplemental 
65.20 	contribution under paragraph (d) must be invoiced on January 31 of each year and is payable 
65.21 	in two parts, with the first half payable on or before July 31 and with the second half payable 
65.22 	on or before December 15. Late payments are payable with compound interest, compounded 
65.23 	annually, at the rate of 0.71 percentapplicable rate or rates specified in section 356.59, 
65.24 	subdivision 3, per month for each month or portion of a month that has elapsed after the 
65.25 	due date.
65.26 	(g) The employer supplemental contribution under paragraph (d) terminates on December 
65.27 	31, 2031.

65.28 	EFFECTIVE DATE. This section is effective July 1, 2017.

65.29 	Sec. 19. Minnesota Statutes 2016, section 353.27, subdivision 7a, is amended to read:
65.30 		Subd. 7a.Deductions or contributions transmitted by error. (a) If employee deductions 
65.31 	and employer contributions under this section, section 353.50, 353.65, or 353E.03 were 
65.32 	erroneously transmitted to the association, but should have been transmitted to a plan covered 
65.33 	by chapter 352D, 353D, 354B, or 354D, the executive director shall transfer the erroneous 
66.1 	employee deductions and employer contributions to the appropriate retirement fund or 
66.2 	individual account, as applicable. The time limitations specified in subdivisions 7 and 12 
66.3 	do not apply. The transfer to the applicable defined contribution plan account must include 
66.4 	interest at the rate of 0.71 percent per month until June 30, 2015, and 0.667 percentapplicable 
66.5 	rate or rates specified in section 356.59, subdivision 3, per month thereafter, compounded 
66.6 	annually, from the first day of the month following the month in which coverage should 
66.7 	have commenced in the defined contribution plan until the end of the month in which the 
66.8 	transfer occurs.
66.9 	(b) A potential transfer under paragraph (a) that is reasonably determined to cause the 
66.10 	plan to fail to be a qualified plan under section 401(a) of the federal Internal Revenue Code, 
66.11 	as amended, must not be made by the executive director of the association. Within 30 days 
66.12 	after being notified by the Public Employees Retirement Association of an unmade potential 
66.13 	transfer under this paragraph, the employer of the affected person must transmit an amount 
66.14 	representing the applicable salary deductions and employer contributions, without interest, 
66.15 	to the retirement fund of the appropriate Minnesota public pension plan, or to the applicable 
66.16 	individual account if the proper coverage is by a defined contribution plan. The association 
66.17 	must provide the employing unit a credit for the amount of the erroneous salary deductions 
66.18 	and employer contributions against future contributions from the employer. If the employing 
66.19 	unit receives a credit under this paragraph, the employing unit is responsible for refunding 
66.20 	to the applicable employee any amount that had been erroneously deducted from the person's 
66.21 	salary.
66.22 	(c) If erroneous employee deductions and employer contributions reflect a plan coverage 
66.23 	error involving any Public Employees Retirement Association plan specified in section 
66.24 	356.99 and any other plan specified in that section, section 356.99 applies.

66.25 	EFFECTIVE DATE. This section is effective July 1, 2017.

66.26 	Sec. 20. Minnesota Statutes 2016, section 353.27, subdivision 12, is amended to read:
66.27 		Subd. 12.Omitted salary deductions; obligations. (a) In the case of omission of 
66.28 	required deductions for the general employees retirement plan, the public employees police 
66.29 	and fire retirement plan, or the local government correctional employees retirement plan 
66.30 	from the salary of an employee, the department head or designee shall immediately, upon 
66.31 	discovery, report the employee for membership and deduct the employee deductions under 
66.32 	subdivision 4 during the current pay period or during the pay period immediately following 
66.33 	the discovery of the omission. Payment for the omitted obligations may only be made in 
66.34 	accordance with reporting procedures and methods established by the executive director.
67.1 	(b) When the entire omission period of an employee does not exceed 60 days, the 
67.2 	governmental subdivision may report and submit payment of the omitted employee 
67.3 	deductions and the omitted employer contributions through the reporting processes under 
67.4 	subdivision 4.
67.5 	(c) When the omission period of an employee exceeds 60 days, the governmental 
67.6 	subdivision shall furnish to the association sufficient data and documentation upon which 
67.7 	the obligation for omitted employee and employer contributions can be calculated. The 
67.8 	omitted employee deductions must be deducted from the employee's subsequent salary 
67.9 	payment or payments and remitted to the association for deposit in the applicable retirement 
67.10 	fund. The employee shall pay omitted employee deductions due for the 60 days prior to the 
67.11 	end of the last pay period in the omission period during which salary was earned. The 
67.12 	employer shall pay any remaining omitted employee deductions and any omitted employer 
67.13 	contributions, plus cumulative interest at the annual rate of 8.5 percent until June 30, 2015, 
67.14 	and eight percent thereafter compounded annually, from the date or dates each omitted 
67.15 	employee contribution was first payable.
67.16 	(d) An employer shall not hold an employee liable for omitted employee deductions 
67.17 	beyond the pay period dates under paragraph (c), nor attempt to recover from the employee 
67.18 	those employee deductions paid by the employer on behalf of the employee. Omitted 
67.19 	deductions due under paragraph (c) which are not paid by the employee constitute a liability 
67.20 	of the employer that failed to deduct the omitted deductions from the employee's salary. 
67.21 	The employer shall make payment with interest at the annual rate of 8.5 percent until June 
67.22 	30, 2015, and eight percent thereafterapplicable rate or rates specified in section 356.59, 
67.23 	subdivision 3, compounded annually. Omitted employee deductions are no longer due if an 
67.24 	employee terminates public service before making payment of omitted employee deductions 
67.25 	to the association, but the employer remains liable to pay omitted employer contributions 
67.26 	plus interest at the annual rate of 8.5 percent until June 30, 2015, and eight percent thereafter
67.27 	applicable rate or rates specified in section 356.59, subdivision 3, compounded annually,
67.28 	from the date the contributions were first payable.
67.29 	(e) The association may not commence action for the recovery of omitted employee 
67.30 	deductions and employer contributions after the expiration of three calendar years after the 
67.31 	calendar year in which the contributions and deductions were omitted. Except as provided 
67.32 	under paragraph (b), no payment may be made or accepted unless the association has already 
67.33 	commenced action for recovery of omitted deductions. An action for recovery commences 
67.34 	on the date of the mailing of any written correspondence from the association requesting 
68.1 	information from the governmental subdivision upon which to determine whether or not 
68.2 	omitted deductions occurred.

68.3 	EFFECTIVE DATE. This section is effective July 1, 2017.

68.4 	Sec. 21. Minnesota Statutes 2016, section 353.27, subdivision 12a, is amended to read:
68.5 		Subd. 12a.Terminated employees: omitted deductions. A terminated employee who 
68.6 	was a member of the general employees retirement plan of the Public Employees Retirement 
68.7 	Association, the public employees police and fire retirement plan, or the local government 
68.8 	correctional employees retirement plan and who has a period of employment in which 
68.9 	previously omitted employer contributions were made under subdivision 12 but for whom 
68.10 	no, or only partial, omitted employee contributions have been made, or a member who had 
68.11 	prior coverage in the association for which previously omitted employer contributions were 
68.12 	made under subdivision 12 but who terminated service before required omitted employee 
68.13 	deductions could be withheld from salary, may pay the omitted employee deductions for 
68.14 	the period on which omitted employer contributions were previously paid plus interest at 
68.15 	the annual rate of 8.5 percent until June 30, 2015, and eight percent thereafterapplicable 
68.16 	rate or rates specified in section 356.59, subdivision 3, compounded annually. A terminated 
68.17 	employee may pay the omitted employee deductions plus interest within six months of an 
68.18 	initial notification from the association of eligibility to pay those omitted deductions. If a 
68.19 	terminated employee is reemployed in a position covered under a public pension fund under 
68.20 	section 356.30, subdivision 3, and elects to pay omitted employee deductions, payment 
68.21 	must be made no later than six months after a subsequent termination of public service.

68.22 	EFFECTIVE DATE. This section is effective July 1, 2017.

68.23 	Sec. 22. Minnesota Statutes 2016, section 353.27, subdivision 12b, is amended to read:
68.24 		Subd. 12b.Terminated employees: immediate eligibility. If deductions were omitted 
68.25 	from salary adjustments or final salary of a terminated employee who was a member of the 
68.26 	general employees retirement plan, the public employees police and fire retirement plan, 
68.27 	or the local government correctional employees retirement plan and who is immediately 
68.28 	eligible to draw a monthly benefit, the employer shall pay the omitted employer and employer 
68.29 	additional contributions plus interest on both the employer and employee amounts due at 
68.30 	an annual rate of 8.5 percentthe applicable rate or rates specified in section 356.59, 
68.31 	subdivision 3, compounded annually. The employee shall pay the employee deductions 
68.32 	within six months of an initial notification from the association of eligibility to pay omitted 
68.33 	deductions or the employee forfeits the right to make the payment.

69.1 	EFFECTIVE DATE. This section is effective July 1, 2017.

69.2 	Sec. 23. Minnesota Statutes 2016, section 353.28, subdivision 5, is amended to read:
69.3 		Subd. 5.Interest chargeable on amounts due. Any amount due under this section or 
69.4 	section 353.27, subdivision 4, is payable with interest at the annual compound rate of 8.5 
69.5 	percent until June 30, 2015, and eight percent thereafterapplicable rate or rates specified 
69.6 	in section 356.59, subdivision 3, compounded annually, from the date due until the date 
69.7 	payment is received by the association, with a minimum interest charge of $10.

69.8 	EFFECTIVE DATE. This section is effective July 1, 2017.

69.9 	Sec. 24. Minnesota Statutes 2016, section 353.35, subdivision 1, is amended to read:
69.10 		Subdivision 1.Refund rights. (a) Except as provided in paragraph (b), when any former 
69.11 	member accepts a refund, all existing service credits and all rights and benefits to which 
69.12 	the person was entitled prior to the acceptance of the refund must terminate.
69.13 	(b) A refund under section 353.651, subdivision 3, paragraph (c), does not result in a 
69.14 	forfeiture of salary credit for the allowable service credit covered by the refund.
69.15 	(c) The rights and benefits of a former member must not be restored until the person 
69.16 	returns to active service and acquires at least six months of allowable service credit after 
69.17 	taking the last refund and repays the refund or refunds taken and interest received under 
69.18 	section 353.34, subdivisions 1 and 2, plus interest at the annual rate of 8.5 percent until June 
69.19 	30, 2015, and eight percent thereafterapplicable rate or rates specified in section 356.59, 
69.20 	subdivision 3, compounded annually. If the person elects to restore service credit in a 
69.21 	particular fund from which the person has taken more than one refund, the person must 
69.22 	repay all refunds to that fund. All refunds must be repaid within six months of the last date 
69.23 	of termination of public service.

69.24 	EFFECTIVE DATE. This section is effective July 1, 2017.

69.25 	Sec. 25. Minnesota Statutes 2016, section 354.50, subdivision 2, is amended to read:
69.26 		Subd. 2.Interest charge. If a member desires to repay the refunds, payment shall include 
69.27 	interest at an annual rate of 8.5 percentthe applicable annual rate or rates specified in section 
69.28 	356.59, subdivision 4, compounded annually, from date of withdrawal to the date payment 
69.29 	is made and shall be credited to the fund.

69.30 	EFFECTIVE DATE. This section is effective July 1, 2017.

70.1 	Sec. 26. Minnesota Statutes 2016, section 354.51, subdivision 5, is amended to read:
70.2 		Subd. 5.Payment of shortages. (a) Except as provided in paragraph (b), in the event 
70.3 	that full required member contributions are not deducted from the salary of a teacher, 
70.4 	payment of shortages in member deductions on salary earned are the sole obligation of the 
70.5 	employing unit and are payable by the employing unit upon notification by the executive 
70.6 	director of the shortage. The amount of the shortage shall be paid with interest at an annual 
70.7 	rate of 8.5 percentthe applicable annual rate or rates specified in section 356.59, subdivision 
70.8 	4, compounded annually, from the end of the fiscal year in which the shortage occurred to 
70.9 	the end of the month in which payment is made and the interest must be credited to the 
70.10 	fund. The employing unit shall also pay the employer contributions as specified in section 
70.11 	354.42, subdivisions 3 and 5 for the shortages. If the shortage payment is not paid by the 
70.12 	employing unit within 60 days of notification, and if the executive director does not use the 
70.13 	recovery procedure in section 354.512, the executive director shall certify the amount of 
70.14 	the shortage to the applicable county auditor, who shall spread a levy in the amount of the 
70.15 	shortage payment over the taxable property of the taxing district of the employing unit if 
70.16 	the employing unit is supported by property taxes. Payment may not be made for shortages 
70.17 	in member deductions on salary paid or payable under paragraph (b) or for shortages in 
70.18 	member deductions for persons employed by the Minnesota State Colleges and Universities 
70.19 	system in a faculty position or in an eligible unclassified administrative position and whose 
70.20 	employment was less than 25 percent of a full academic year, exclusive of the summer 
70.21 	session, for the applicable institution that exceeds the most recent 36 months.
70.22 	(b) For a person who is employed by the Minnesota State Colleges and Universities 
70.23 	system in a faculty position or in an eligible unclassified administrative position and whose 
70.24 	employment was less than 25 percent of a full academic year, exclusive of the summer 
70.25 	session, for the applicable institution, upon the person's election under section 354B.21 of 
70.26 	retirement coverage under this chapter, the shortage in member deductions on the salary 
70.27 	for employment by the Minnesota State Colleges and Universities system institution of less 
70.28 	than 25 percent of a full academic year, exclusive of the summer session, for the applicable 
70.29 	institution for the most recent 36 months and the associated employer contributions must 
70.30 	be paid by the Minnesota State Colleges and Universities system institution, plus annual 
70.31 	compound interest at the rate of 8.5 percentapplicable annual rate or rates specified in 
70.32 	section 356.59, subdivision 4, compounded annually, from the end of the fiscal year in 
70.33 	which the shortage occurred to the end of the month in which the Teachers Retirement 
70.34 	Association coverage election is made. An individual electing coverage under this paragraph 
70.35 	shall repay the amount of the shortage in member deductions, plus interest, through deduction 
71.1 	from salary or compensation payments within the first year of employment after the election 
71.2 	under section 354B.21, subject to the limitations in section 16D.16. The Minnesota State 
71.3 	Colleges and Universities system may use any means available to recover amounts which 
71.4 	were not recovered through deductions from salary or compensation payments. No payment 
71.5 	of the shortage in member deductions under this paragraph may be made for a period longer 
71.6 	than the most recent 36 months.

71.7 	EFFECTIVE DATE. This section is effective July 1, 2017.

71.8 	Sec. 27. Minnesota Statutes 2016, section 354.52, subdivision 4, is amended to read:
71.9 		Subd. 4.Reporting and remittance requirements. An employer shall remit all amounts 
71.10 	due to the association and furnish a statement indicating the amount due and transmitted 
71.11 	with any other information required by the executive director. If an amount due is not 
71.12 	received by the association within 14 calendar days of the payroll warrant, the amount 
71.13 	accrues interest at an annual rate of 8.5 percentemployer shall pay interest on the amount 
71.14 	due at the applicable annual rate or rates specified in section 356.59, subdivision 4, 
71.15 	compounded annually, from the due date until the amount is received by the association. 
71.16 	All amounts due and other employer obligations not remitted within 60 days of notification 
71.17 	by the association must be certified to the commissioner of management and budget who 
71.18 	shall deduct the amount from any state aid or appropriation amount applicable to the 
71.19 	employing unit.

71.20 	EFFECTIVE DATE. This section is effective July 1, 2017.

71.21 	Sec. 28. Minnesota Statutes 2016, section 354.53, subdivision 5, is amended to read:
71.22 		Subd. 5.Interest requirements. The employer shall pay interest on all equivalent 
71.23 	employee and employer contribution amounts payable under this section. Interest must be 
71.24 	computed at a rate of 8.5 percentat the applicable annual rate or rates specified in section 
71.25 	356.59, subdivision 4, compounded annually, from the end of each fiscal year of the leave 
71.26 	or the break in service to the end of the month in which the payment is received.

71.27 	EFFECTIVE DATE. This section is effective July 1, 2017.

71.28 	Sec. 29. Minnesota Statutes 2016, section 354A.093, subdivision 6, is amended to read:
71.29 		Subd. 6.Interest requirements. The employer shall pay interest on all equivalent 
71.30 	employee and employer contribution amounts payable under this section. Interest must be 
71.31 	computed at the rate of 8.5 percent until June 30, 2015, and eight percent thereafterapplicable 
71.32 	annual rate or rates specified in section 356.59, subdivision 5, compounded annually, from 
72.1 	the end of each fiscal year of the leave or break in service to the end of the month in which 
72.2 	payment is received.

72.3 	EFFECTIVE DATE. This section is effective July 1, 2017.

72.4 	Sec. 30. Minnesota Statutes 2016, section 354A.096, is amended to read:
72.5 	354A.096 MEDICAL LEAVE.
72.6 	Any teacher in the coordinated program of the St. Paul Teachers Retirement Fund 
72.7 	Association who is on an authorized medical leave of absence and subsequently returns to 
72.8 	teaching service is entitled to receive allowable service credit, not to exceed one year, for 
72.9 	the period of leave, upon making the prescribed payment to the fund. This payment must 
72.10 	include the required employee and employer contributions at the rates specified in section 
72.11 	354A.12, subdivisions 1 and 2a, as applied to the member's average full-time monthly salary 
72.12 	rate on the date the leave of absence commenced plus annual interest at the rate of 8.5 
72.13 	percent until June 30, 2015, and eight percent thereafter per yearapplicable annual rate or 
72.14 	rates specified in section 356.59, subdivision 5, compounded annually, from the end of the 
72.15 	fiscal year during which the leave terminates to the end of the month during which payment 
72.16 	is made. The member must pay the total amount required unless the employing unit, at its 
72.17 	option, pays the employer contributions. The total amount required must be paid by the end 
72.18 	of the fiscal year following the fiscal year in which the leave of absence terminated or before 
72.19 	the member retires, whichever is earlier. Payment must be accompanied by a copy of the 
72.20 	resolution or action of the employing authority granting the leave and the employing 
72.21 	authority, upon granting the leave, must certify the leave to the association in a manner 
72.22 	specified by the executive director. A member may not receive more than one year of 
72.23 	allowable service credit during any fiscal year by making payment under this section. A 
72.24 	member may not receive disability benefits under section 354A.36 and receive allowable 
72.25 	service credit under this section for the same period of time.

72.26 	EFFECTIVE DATE. This section is effective July 1, 2017.

72.27 	Sec. 31. Minnesota Statutes 2016, section 354A.12, subdivision 1a, is amended to read:
72.28 		Subd. 1a.Obligation for omitted salary deductions. If the full required contributions 
72.29 	are not deducted from the salary of a teacher, payment of the shortage in such deductions 
72.30 	is the sole obligation of the employing unit during the three-year period following the end 
72.31 	of the fiscal year in which the shortage occurred. The shortage is payable by the employing 
72.32 	unit upon notification of the shortage by the executive director of the applicable retirement 
72.33 	fund association. The employing unit shall also pay any employer contributions related to 
73.1 	the shortage. The amount of the shortage in employee contributions and associated employer 
73.2 	contributions is payable with interest at the preretirement interest assumption for the 
73.3 	retirement fund as specified in section 356.215, subdivision 8, stated as a monthly rate
73.4 	applicable annual rate or rates specified in section 356.59, subdivision 5, from the date due 
73.5 	until the date payment is received in the office of the association, compounded annually, 
73.6 	with a minimum interest charge of $10. If the shortage payment and interest is not paid by 
73.7 	the employing unit within 60 days of notification, the executive director shall certify the 
73.8 	amount of the shortage payment and interest to the commissioner of management and budget, 
73.9 	who shall deduct the amount from any state aid or appropriation amount applicable to the 
73.10 	employing unit.

73.11 	EFFECTIVE DATE. This section is effective July 1, 2017.

73.12 	Sec. 32. Minnesota Statutes 2016, section 354A.12, subdivision 7, is amended to read:
73.13 		Subd. 7.Recovery of benefit overpayments. (a) If the executive director discovers, 
73.14 	within the time period specified in subdivision 8 following the payment of a refund or the 
73.15 	accrual date of any retirement annuity, survivor benefit, or disability benefit, that benefit 
73.16 	overpayment has occurred due to using invalid service or salary, or due to any erroneous 
73.17 	calculation procedure, the executive director must recalculate the annuity or benefit payable 
73.18 	and recover any overpayment. The executive director shall recover the overpayment by 
73.19 	requiring direct repayment or by suspending or reducing the payment of a retirement annuity 
73.20 	or other benefit payable under this chapter to the applicable person or the person's estate, 
73.21 	whichever applies, until all outstanding amounts have been recovered. If a benefit 
73.22 	overpayment or improper payment of benefits occurred caused by a failure of the person 
73.23 	to satisfy length of separation requirements for retirement under section 354A.011, 
73.24 	subdivision 21, the executive director shall recover the improper payments by requiring 
73.25 	direct repayment. The repayment must include interest at the rate of 0.71 percent per month
73.26 	applicable annual rate or rates specified in section 356.59, subdivision 5, from the first of 
73.27 	the month in which a monthly benefit amount was paid to the first of the month in which 
73.28 	the amount is repaid, with annual compounding.
73.29 	(b) In the event the executive director determines that an overpaid annuity or benefit 
73.30 	that is the result of invalid salary included in the average salary used to calculate the payment 
73.31 	amount must be recovered, the executive director must determine the amount of the employee 
73.32 	deductions taken in error on the invalid salary, with interest as determined under 354A.37, 
73.33 	subdivision 3, and must subtract that amount from the total annuity or benefit overpayment, 
73.34 	and the remaining balance of the overpaid annuity or benefit, if any, must be recovered.
74.1 	(c) If the invalid employee deductions plus interest exceed the amount of the overpaid 
74.2 	benefits, the balance must be refunded to the person to whom the benefit or annuity is being 
74.3 	paid.
74.4 	(d) Any invalid employer contributions reported on the invalid salary must be credited 
74.5 	against future contributions payable by the employer.
74.6 	(e) If a member or former member, who is receiving a retirement annuity or disability 
74.7 	benefit for which an overpayment is being recovered, dies before recovery of the overpayment 
74.8 	is completed and an optional annuity or refund is payable, the remaining balance of the 
74.9 	overpaid annuity or benefit must continue to be recovered from the payment to the optional 
74.10 	annuity beneficiary or refund recipient.
74.11 	(f) The board of trustees shall adopt policies directing the period of time and manner 
74.12 	for the collection of any overpaid retirement or optional annuity, and survivor or disability 
74.13 	benefit, or a refund that the executive director determines must be recovered as provided 
74.14 	under this section.

74.15 	EFFECTIVE DATE. This section is effective July 1, 2017.

74.16 	Sec. 33. Minnesota Statutes 2016, section 354A.34, is amended to read:
74.17 	354A.34 DISPOSITION OF UNPAID PERIOD CERTAIN FOR LIFE OR 
74.18 	GUARANTEED REFUND OPTIONAL ANNUITIES.
74.19 	If a retiree from a coordinated program who has elected a period certain and for life 
74.20 	thereafter or a guaranteed refund optional annuity form dies without having a designated 
74.21 	beneficiary who has survived the retiree, any remaining unpaid guaranteed annuity payments 
74.22 	shall be computed at the rate of interest specified in section 356.215, subdivision 8, and 
74.23 	paid in one lump sum to the estate of the retiree. If a retiree from a coordinated program 
74.24 	who has elected a period certain and for life or a guaranteed refund optional annuity form 
74.25 	dies with a designated beneficiary who has survived the retiree but the designated beneficiary 
74.26 	dies without there existing another designated beneficiary, any remaining unpaid guaranteed 
74.27 	annuity payments shall be computed at the rate ofwith interest at the applicable annual rate 
74.28 	or rates specified in section 356.215, subdivision 8 356.59, subdivision 5, and paid in one 
74.29 	lump sum to the estate of the designated beneficiary.

74.30 	EFFECTIVE DATE. This section is effective July 1, 2017.

75.1 	Sec. 34. Minnesota Statutes 2016, section 356.195, subdivision 2, is amended to read:
75.2 		Subd. 2.Purchase procedure for strike periods. (a) An employee covered by a plan 
75.3 	specified in subdivision 1 may purchase allowable service credit in the applicable plan for 
75.4 	any period of time during which the employee was on a public employee strike without 
75.5 	pay, not to exceed a period of one year, if the employee makes a payment in lieu of salary 
75.6 	deductions as specified in paragraph (b) or (c), whichever applies. The employing unit, at 
75.7 	its option, may pay the employer portion of the amount specified in paragraph (b) on behalf 
75.8 	of its employees.
75.9 	(b) If payment is received by the applicable pension plan executive director within one 
75.10 	year from the end of the strike, the payment amount is equal to the applicable employee 
75.11 	and employer contribution rates specified in law for the applicable plan during the strike 
75.12 	period, applied to the employee's rate of salary in effect at the conclusion of the strike for 
75.13 	the period of the strike without pay, plus compound interest at the monthly rate of 0.71 
75.14 	percent for any period for the Teachers Retirement Association and at the monthly rate of 
75.15 	0.71 percent until June 30, 2015, and 0.667 percent thereafter for any other retirement plan 
75.16 	listed in section 356.30, subdivision 3 applicable monthly rate or rates specified in section 
75.17 	356.59, subdivision 2, 3, 4, or 5, whichever applies, from the last day of the strike period 
75.18 	until the date payment is received.
75.19 	(c) If payment is received by the applicable pension fund director after one year and 
75.20 	before five years from the end of the strike, the payment amount is the amount determined 
75.21 	under section 356.551.
75.22 	(d) Payments may not be made more than five years after the end of the strike.

75.23 	EFFECTIVE DATE. This section is effective July 1, 2017.

75.24 	Sec. 35. Minnesota Statutes 2016, section 356.44, is amended to read:
75.25 	356.44 PARTIAL PAYMENT OF PENSION PLAN REFUND.
75.26 	(a) Notwithstanding any provision of law to the contrary, a member of a pension plan 
75.27 	listed in section 356.30, subdivision 3, with at least two years of forfeited service taken 
75.28 	from a single pension plan, may repay a portion of all refunds. A partial refund repayment 
75.29 	must comply with this section.
75.30 	(b) The minimum portion of a refund repayment is one-third of the total service credit 
75.31 	period of all refunds taken from a single plan.
76.1 	(c) The cost of the partial refund repayment is the product of the cost of the total 
76.2 	repayment multiplied by the ratio of the restored service credit to the total forfeited service 
76.3 	credit. The total repayment amount includes interest at the annual rate of 8.5 percent for 
76.4 	any period for the Teachers Retirement Association and is 8.5 percent until June 30, 2015, 
76.5 	and eight percent thereafter for any other retirement plan listed in section 356.30, subdivision 
76.6 	3 at the applicable annual rate or rates specified in section 356.59, subdivision 2, 3, 4, or 5, 
76.7 	whichever applies, compounded annually, from the refund date to the date repayment is 
76.8 	received.
76.9 	(d) The restored service credit must be allocated based on the relationship the restored 
76.10 	service bears to the total service credit period for all refunds taken from a single pension 
76.11 	plan.
76.12 	(e) This section does not authorize a public pension plan member to repay a refund if 
76.13 	the law governing the plan does not authorize the repayment of a refund of member 
76.14 	contributions.

76.15 	EFFECTIVE DATE. This section is effective July 1, 2017.

76.16 	Sec. 36. Minnesota Statutes 2016, section 356.50, subdivision 2, is amended to read:
76.17 		Subd. 2.Service credit procedure.  (a) To obtain the public pension plan allowable 
76.18 	service credit, the eligible person under subdivision 1 shall pay the required member 
76.19 	contribution amount. The required member contribution amount is the member contribution 
76.20 	rate or rates in effect for the pension plan during the period of service covered by the back 
76.21 	pay award, applied to the unpaid gross salary amounts of the back pay award including 
76.22 	unemployment insurance, workers' compensation, or wages from other sources which 
76.23 	reduced the back award. No contributions may be made under this clause for compensation 
76.24 	covered by a public pension plan listed in section 356.30, subdivision 3, for employment 
76.25 	during the removal period. The person shall pay the required member contribution amount 
76.26 	within 60 days of the date of receipt of the back pay award or within 60 days of a billing 
76.27 	from the retirement fund, whichever is later.
76.28 	(b) The public employer who wrongfully discharged the public employee must pay an 
76.29 	employer contribution on the back pay award. The employer contribution must be based 
76.30 	on the employer contribution rate or rates in effect for the pension plan during the period 
76.31 	of service covered by the back pay award, applied to the salary amount on which the member 
76.32 	contribution amount was determined under paragraph (a). Interest on both the required 
76.33 	member and employer contribution amount must be paid by the employer at the annual 
76.34 	compound rate of 8.5 percent for any period for the Teachers Retirement Association and 
77.1 	8.5 percent until June 30, 2015, and eight percent thereafter, for any other retirement plan 
77.2 	listed in section 356.30, subdivision 3, per year, expressed monthly The employer must pay 
77.3 	compound interest on both the required member and employer contribution amounts at the 
77.4 	applicable monthly rate or rates specified in section 356.59, subdivision 2, 3, 4, or 5, 
77.5 	whichever applies, between the date the contribution amount would have been paid to the 
77.6 	date of actual payment. The employer payment must be made within 30 days of the payment 
77.7 	under paragraph (a).

77.8 	EFFECTIVE DATE. This section is effective July 1, 2017.

77.9 	Sec. 37. Minnesota Statutes 2016, section 356.551, subdivision 2, is amended to read:
77.10 		Subd. 2.Determination. (a) Unless the minimum purchase amount set forth in paragraph 
77.11 	(c) applies, the prior service credit purchase amount is an amount equal to the actuarial 
77.12 	present value, on the date of payment, as calculated by the chief administrative officer of 
77.13 	the pension plan and reviewed by the actuary retained under section 356.214, of the amount 
77.14 	of the additional retirement annuity obtained by the acquisition of the additional service 
77.15 	credit in this section.
77.16 	(b) Calculation of this amount must be made using the preretirement interest rate 
77.17 	applicable to the public pension plan specified in section 356.215, subdivision 8, and the 
77.18 	mortality table adopted for the public pension plan. The calculation must assume continuous 
77.19 	future service in the public pension plan until, and retirement at, the age at which the 
77.20 	minimum requirements of the fund for normal retirement or retirement with an annuity 
77.21 	unreduced for retirement at an early age, including section 356.30, are met with the additional 
77.22 	service credit purchased. The calculation must also assume a full-time equivalent salary, or 
77.23 	actual salary, whichever is greater, and a future salary history that includes annual salary 
77.24 	increases at the applicable salary increase rate for the plan specified in section 356.215, 
77.25 	subdivision 4d 8.
77.26 	(c) The prior service credit purchase amount may not be less than the amount determined 
77.27 	by applying, for each year or fraction of a year being purchased, the sum of the employee 
77.28 	contribution rate, the employer contribution rate, and the additional employer contribution 
77.29 	rate, if any, applicable during that period, to the person's annual salary during that period, 
77.30 	or fractional portion of a year's salary, if applicable, plus interest at the annual rate of 8.5 
77.31 	percent until June 30, 2015, and eight percent thereafterapplicable annual rate or rates 
77.32 	specified in section 356.59, subdivision 2, 3, 4, or 5, whichever applies, compounded 
77.33 	annually, from the end of the year in which contributions would otherwise have been made 
77.34 	to the date on which the payment is received.
78.1 	(d) Unless otherwise provided by statutes governing a specific plan, payment must be 
78.2 	made in one lump sum within one year of the prior service credit authorization or prior to 
78.3 	the member's effective date of retirement, whichever is earlier. Payment of the amount 
78.4 	calculated under this section must be made by the applicable eligible person.
78.5 	(e) However, the current employer or the prior employer may, at its discretion, pay all 
78.6 	or any portion of the payment amount that exceeds an amount equal to the employee 
78.7 	contribution rates in effect during the period or periods of prior service applied to the actual 
78.8 	salary rates in effect during the period or periods of prior service, plus interest at the 
78.9 	applicable annual rate of 8.5 percent a year or rates specified in section 356.59, subdivision 
78.10 	2, 3, 4, or 5, whichever applies, compounded annually, from the date on which the 
78.11 	contributions would otherwise have been made to the date on which the payment is made. 
78.12 	If the employer agrees to payments under this subdivision, the purchaser must make the 
78.13 	employee payments required under this subdivision within 90 days of the prior service credit 
78.14 	authorization. If that employee payment is made, the employer payment under this 
78.15 	subdivision must be remitted to the chief administrative officer of the public pension plan 
78.16 	within 60 days of receipt by the chief administrative officer of the employee payments 
78.17 	specified under this subdivision.

78.18 	EFFECTIVE DATE. This section is effective July 1, 2017.

78.19 	Sec. 38. [356.59] INTEREST RATES.
78.20 		Subdivision 1.Applicable interest rates. Whenever the payment of interest is required 
78.21 	with respect to any payment, including refunds, remittances, shortages, contributions, or 
78.22 	repayments, the rate of interest is the rate or rates specified in subdivisions 2 to 5 for each 
78.23 	public retirement plan.
78.24 		Subd. 2.Minnesota State Retirement System. The interest rates for all retirement plans 
78.25 	administered by the Minnesota State Retirement System are as follows:

78.26				Annual
		Monthly
	
78.27		before July 1, 2015
	8.5 percent
	0.71 percent
	
78.28		from July 1, 2015, to June 30, 2017
	8.0 percent
	0.667 percent
	
78.29		after June 30, 2017
	7.5 percent
	0.625 percent
	
78.30 		Subd. 3.Public Employees Retirement Association. The interest rates for all retirement 
78.31 	plans administered by the Public Employees Retirement Association are as follows:

78.32		before July 1, 2015
	8.5 percent
		
78.33		from July 1, 2015, to June 30, 2017
	8.0 percent
		
79.1		after June 30, 2017
	7.5 percent
		
79.2 		Subd. 4.Teachers Retirement Association. The interest rates for the retirement plan 
79.3 	administered by the Teachers Retirement Association are as follows:

79.4				Annual
		Monthly
	
79.5		before July 1, 2017
	8.5 percent
	0.71 percent
	
79.6		after June 30, 2017
	7.5 percent
	0.625 percent

					
		
79.7 		Subd. 5.St. Paul Teachers Retirement Fund Association. The interest rates for the 
79.8 	retirement plan administered by the St. Paul Teachers Retirement Fund Association are as 
79.9 	follows:

79.10				Annual
		Monthly
	
79.11		before July 1, 2015
	8.5 percent
	0.71 percent
	
79.12		from July 1, 2015, to June 30, 2017
	8.0 percent
	0.667 percent
	
79.13		after June 30, 2017
	7.5 percent
	0.625 percent

79.14 	EFFECTIVE DATE. This section is effective July 1, 2017, except that the modification 
79.15 	made to the Teachers Retirement Association interest rate in this section is effective the 
79.16 	day following final enactment only if an appropriation is made to the Teachers Retirement 
79.17 	Association in the 2017 legislative session for the employer contribution increase in this 
79.18 	act.

79.19 	Sec. 39. Minnesota Statutes 2016, section 490.121, subdivision 4, is amended to read:
79.20 		Subd. 4.Allowable service. (a) "Allowable service" means any calendar month, subject 
79.21 	to the service credit limit in subdivision 22, served as a judge at any time, during which the 
79.22 	judge received compensation for that service from the state, municipality, or county, 
79.23 	whichever applies, and for which the judge made any required member contribution. It also 
79.24 	includes any month served as a referee in probate for all referees in probate who were in 
79.25 	office before January 1, 1974.
79.26 	(b) "Allowable service" also means a period of authorized leave of absence for which 
79.27 	the judge has made a payment in lieu of contributions, not in an amount in excess of the 
79.28 	service credit limit under subdivision 22. To obtain the service credit, the judge shall pay 
79.29 	an amount equal to the normal cost of the judges retirement plan on the date of return from 
79.30 	the leave of absence, as determined in the most recent actuarial report for the plan filed with 
79.31 	the Legislative Commission on Pensions and Retirement, multiplied by the judge's average 
79.32 	monthly salary rate during the authorized leave of absence and multiplied by the number 
79.33 	of months of the authorized leave of absence, plus annual compound interest at the rate of 
80.1 	8.5 percent until June 30, 2015, and eight percent thereafterinterest at the applicable annual 
80.2 	rate or rates specified in section 356.59, subdivision 2, compounded annually, from the date 
80.3 	of the termination of the leave to the date on which payment is made. The payment must 
80.4 	be made within one year of the date on which the authorized leave of absence terminated. 
80.5 	Service credit for an authorized leave of absence is in addition to a uniformed service leave 
80.6 	under section 490.1211.
80.7 	(c) "Allowable service" does not mean service as a retired judge.

80.8 	EFFECTIVE DATE. This section is effective July 1, 2017.

80.9 	Sec. 40. Minnesota Statutes 2016, section 490.1211, is amended to read:
80.10 	490.1211 UNIFORMED SERVICE.
80.11 	(a) A judge who is absent from employment by reason of service in the uniformed 
80.12 	services, as defined in United States Code, title 38, section 4303(13), and who returns to 
80.13 	state employment as a judge upon discharge from service in the uniformed service within 
80.14 	the time frame required in United States Code, title 38, section 4312(e), may obtain service 
80.15 	credit for the period of the uniformed service, provided that the judge did not separate from 
80.16 	uniformed service with a dishonorable or bad conduct discharge or under other than honorable 
80.17 	conditions.
80.18 	(b) The judge may obtain credit by paying into the fund equivalent member contribution 
80.19 	based on the contribution rate or rates in effect at the time that the uniformed service was 
80.20 	performed multiplied by the full and fractional years being purchased and applied to the 
80.21 	annual salary rate. The annual salary rate is the average annual salary during the purchase 
80.22 	period that the judge would have received if the judge had continued to provide employment 
80.23 	services to the state rather than to provide uniformed service, or if the determination of that 
80.24 	rate is not reasonably certain, the annual salary rate is the judge's average salary rate during 
80.25 	the 12-month period of judicial employment rendered immediately preceding the purchase 
80.26 	period.
80.27 	(c) The equivalent employer contribution and, if applicable, the equivalent employer 
80.28 	additional contribution, must be paid by the employing unit, using the employer and employer 
80.29 	additional contribution rate or rates in effect at the time that the uniformed service was 
80.30 	performed, applied to the same annual salary rate or rates used to compute the equivalent 
80.31 	member contribution.
80.32 	(d) If the member equivalent contributions provided for in this section are not paid in 
80.33 	full, the judge's allowable service credit must be prorated by multiplying the full and 
81.1 	fractional number of years of uniformed service eligible for purchase by the ratio obtained 
81.2 	by dividing the total member contributions received by the total member contributions 
81.3 	otherwise required under this section.
81.4 	(e) To receive allowable service credit under this section, the contributions specified in 
81.5 	this section and section 490.121 must be transmitted to the fund during the period which 
81.6 	begins with the date on which the individual returns to judicial employment and which has 
81.7 	a duration of three times the length of the uniformed service period, but not to exceed five 
81.8 	years. If the determined payment period is calculated to be less than one year, the 
81.9 	contributions required under this section to receive service credit may be within one year 
81.10 	from the discharge date.
81.11 	(f) The amount of allowable service credit obtainable under this section and section 
81.12 	490.121 may not exceed five years, unless a longer purchase period is required under United 
81.13 	States Code, title 38, section 4312.
81.14 	(g) The state court administrator shall pay interest on all equivalent member and employer 
81.15 	contribution amounts payable under this section. Interest must be computed at the rate of 
81.16 	8.5 percent until June 30, 2015, and eight percent thereafterat the applicable annual rate or 
81.17 	rates specified in section 356.59, subdivision 2, compounded annually, from the end of each 
81.18 	fiscal year of the leave or break in service to the end of the month in which payment is 
81.19 	received.

81.20 	EFFECTIVE DATE. This section is effective July 1, 2017.

81.21 	Sec. 41. Minnesota Statutes 2016, section 490.124, subdivision 12, is amended to read:
81.22 		Subd. 12.Refund.  (a) A person who ceases to be a judge is entitled to a refund in an 
81.23 	amount that is equal to all of the member's employee contributions to the judges' retirement 
81.24 	fund plus interest computed under section 352.22, subdivision 2.
81.25 	(b) A refund of contributions under paragraph (a) terminates all service credits and all 
81.26 	rights and benefits of the judge and the judge's survivors under this chapter.
81.27 	(c) A person who becomes a judge again after taking a refund under paragraph (a) may 
81.28 	reinstate the previously terminated allowable service credit, rights, and benefits by repaying 
81.29 	the total amount of the previously received refund. The refund repayment must include 
81.30 	interest on the total amount previously received at the annual rate of 8.5 percent until June 
81.31 	30, 2015, and eight percent thereafter at the applicable annual rate or rates specified in 
81.32 	section 356.59, subdivision 2, compounded annually, from the date on which the refund 
81.33 	was received until the date on which the refund is repaid.

82.1 	EFFECTIVE DATE. This section is effective July 1, 2017.

82.2 	ARTICLE 7
82.3 	CONTRIBUTION RATES

82.4 	Section 1. Minnesota Statutes 2016, section 352.04, subdivision 2, is amended to read:
82.5 		Subd. 2.Employee contributions. (a) The employee contribution to the fund must be 
82.6 	equal to the following percent of salary:

82.7		from July 1, 2010, to June 30, 2014
	5
	
82.8		from July 1, 2014, and thereafter to June 30, 2017
	5.5
	
82.9		from July 1, 2017, to June 30, 2018
	5.75
	
82.10		after June 30, 2018
	6
	
82.11 	(b) These contributions must be made by deduction from salary as provided in subdivision 
82.12 	4.
82.13 	(c) Contribution increases under paragraph (a) must be paid starting the first day of the 
82.14 	first full pay period after the effective date of the increase.

82.15 	EFFECTIVE DATE. This section is effective July 1, 2017.

82.16 	Sec. 2. Minnesota Statutes 2016, section 352.04, subdivision 3, is amended to read:
82.17 		Subd. 3.Employer contributions. (a) The employer contribution to the fund must be 
82.18 	equal to the following percent of salary:

82.19		from July 1, 2010, to June 30, 2014
	5
	
82.20		from July 1, 2014, and thereafterto June 30, 2017
	5.5
	
82.21		from July 1, 2017, to June 30, 2018
	5.875
	
82.22		after June 30, 2018
	6.25
	
82.23 	(b) Contribution increases under paragraph (a) must be paid starting the first day of the 
82.24 	first full pay period after the effective date of the increase.

82.25 	EFFECTIVE DATE. This section is effective July 1, 2017.

82.26 	Sec. 3. Minnesota Statutes 2016, section 352.92, subdivision 1, is amended to read:
82.27 		Subdivision 1.Employee contributions. (a) Employee contributions of covered 
82.28 	correctional employees must be in an amount equal to the following percent of salary:

82.29		from July 1, 2010, to June 30, 2014
	8.6
	
82.30		from July 1, 2014, and thereafterto June 30, 2017
	9.1
	
83.1		after June 30, 2017
	9.6
	
83.2 	(b) These contributions must be made by deduction from salary as provided in section 
83.3 	352.04, subdivision 4.
83.4 	(c) Contribution increases under paragraph (a) must be paid starting the first day of the 
83.5 	first full pay period after the effective date of the increase.

83.6 	EFFECTIVE DATE. This section is effective July 1, 2017.

83.7 	Sec. 4. Minnesota Statutes 2016, section 352.92, subdivision 2, is amended to read:
83.8 		Subd. 2.Employer contributions. (a) The employer shall contribute for covered 
83.9 	correctional employees an amount equal to the following percent of salary:

83.10		from July 1, 2010, to June 30, 2014
	12.1
	
83.11		from July 1, 2014, and thereafterto June 30, 2017
	12.85
	
83.12		after June 30, 2017
	14.4
	
83.13 	(b) Contribution increases under paragraph (a) must be paid starting the first day of the 
83.14 	first full pay period after the effective date of the increase.

83.15 	EFFECTIVE DATE. This section is effective July 1, 2017.

83.16 	Sec. 5. Minnesota Statutes 2016, section 352.92, is amended by adding a subdivision to 
83.17 	read:
83.18 		Subd. 2a.Supplemental employer contribution. (a) Effective July 1, 2018, the employer 
83.19 	shall pay a supplemental contribution. The supplemental contribution shall be 1.45 percent 
83.20 	of salary for covered correctional employees from July 1, 2018, through June 30, 2019; 
83.21 	2.95 percent of salary for covered correctional employees from July 1, 2019, through June 
83.22 	30, 2020; and 4.45 percent of salary for covered correctional employees thereafter. The 
83.23 	supplemental contribution rate of 4.45 percent shall remain in effect until the market value 
83.24 	of the assets of the correctional state employees retirement plan of the Minnesota State 
83.25 	Retirement System equals or exceeds the actuarial accrued liability of the plan as determined 
83.26 	by the actuary retained under section 356.214. The expiration of the supplemental employer 
83.27 	contribution is effective the first day of the first full pay period of the fiscal year immediately 
83.28 	following the issuance of the actuarial valuation upon which the expiration is based.
83.29 	(b) The supplemental contribution under paragraph (a) must be paid starting the first 
83.30 	day of the first full pay period after the effective date.

83.31 	EFFECTIVE DATE. This section is effective July 1, 2017.

84.1 	Sec. 6. Minnesota Statutes 2016, section 352B.02, subdivision 1a, is amended to read:
84.2 		Subd. 1a.Member contributions. (a) The member contribution is the following 
84.3 	percentage of the member's salary:

84.4
84.5		(1) before the first day of the first pay period beginning 
after July 1,  2014
	12.4 percent
	
84.6
84.7		(2) on or after the first day of the first pay period 
beginning afterfrom July 1, 2014, to June 30, 2016
	13.4 percent
	
84.8
84.9		(3) after June 30, 2016 from July 1, 2016, to June 30, 
2017
	14.4 percent
	
84.10		from July 1, 2017, to June 30, 2019
	14.9
	
84.11		after June 30, 2019
	15.4
	
84.12 	(b) These contributions must be made by deduction from salary as provided in section 
84.13 	352.04, subdivision 4.
84.14 	(c) Contribution increases under paragraph (a) must be paid starting the first day of the 
84.15 	first full pay period after the effective date of the increase.

84.16 	EFFECTIVE DATE. This section is effective July 1, 2017.

84.17 	Sec. 7. Minnesota Statutes 2016, section 352B.02, subdivision 1c, is amended to read:
84.18 		Subd. 1c.Employer contributions and supplemental employer contribution. (a) In 
84.19 	addition to member contributions, department heads shall pay a sum equal to the specified 
84.20 	percentage of the salary upon which deductions were made, which constitutes the employer 
84.21 	contribution to the fund as follows:

84.22
84.23		(1) before the first day of the first pay period beginning 
after July 1,  2014
	18.6 percent
	
84.24
84.25		(2) on or after the first day of the first pay period 
beginning afterfrom July 1, 2014, to June 30, 2016
	20.1 percent
	
84.26
84.27		(3) after June 30, 2016 from July 1, 2016, to June 30, 
2017
	21.6 percent
	
84.28		from July 1, 2017, to June 30, 2018
	22.35
	
84.29		after June 30, 2018
	23.1
	
84.30 	(b) Department contributions must be paid out of money appropriated to departments 
84.31 	for this purpose.
84.32 	(c) Contribution increases under paragraph (a) must be paid starting the first day of the 
84.33 	first full pay period after the effective date of the increase.
84.34 	(d) Effective July 1, 2017, department heads shall pay a supplemental employer 
84.35 	contribution. The supplemental contribution shall be 1.75 percent of the salary upon which 
85.1 	deductions are made from July 1, 2017, through June 30, 2018; three percent of the salary 
85.2 	upon which deductions are made from July 1, 2018, through June 30, 2019; five percent of 
85.3 	the salary which deductions are made from July 1, 2019, through June 30, 2020; and seven 
85.4 	percent of the salary upon which deductions are made thereafter. The supplemental 
85.5 	contribution must be paid starting the first day of the first full pay period after the effective 
85.6 	date. The supplemental contribution rate of seven percent shall remain in effect until the 
85.7 	market value of the assets of the State Patrol retirement plan of the Minnesota State 
85.8 	Retirement System equals or exceeds the actuarial accrued liability of the plan as determined 
85.9 	by the actuary retained under section 356.214. The expiration of the supplemental employer 
85.10 	contribution is effective the first day of the first full pay period of the fiscal year immediately 
85.11 	following the issuance of the actuarial valuation upon which the expiration is based.

85.12 	EFFECTIVE DATE. This section is effective July 1, 2017.

85.13 	Sec. 8. Minnesota Statutes 2016, section 352D.04, subdivision 2, is amended to read:
85.14 		Subd. 2.Contribution rates. (a) The money used to purchase shares under this section 
85.15 	is the employee and employer contributions provided in this subdivision.
85.16 	(b) The employee contribution is an amount equal to the5.5 percent of salary specified 
85.17 	in section 352.04, subdivision 2, or 352.045, subdivision 3a.
85.18 	(c) The employer contribution is an amount equal to six percent of salary.
85.19 	(d) For members of the legislature, the contributions under this subdivision also must 
85.20 	be made on per diem payments received during a regular or special legislative session, but 
85.21 	may not be made on per diem payments received outside of a regular or special legislative 
85.22 	session, on the additional compensation attributable to a leadership position under section 
85.23 	3.099, subdivision 3, living expense payments under section 3.101, or special session living 
85.24 	expense payments under section 3.103.
85.25 	(e) For a judge who is a member of the unclassified plan under section 352D.02, 
85.26 	subdivision 1, paragraph (c), clause (16), the employee contribution rate is eight percent of 
85.27 	salary, and there is no employer contribution.
85.28 	(f) These contributions must be made in the manner provided in section 352.04, 
85.29 	subdivisions 4, 5, and 6.

85.30 	EFFECTIVE DATE. This section is effective July 1, 2017.

86.1 	Sec. 9. Minnesota Statutes 2016, section 353.65, subdivision 2, is amended to read:
86.2 		Subd. 2.Employee contribution. (a) For members other than members who were active 
86.3 	members of the former Minneapolis Firefighters Relief Association on December 29, 2011, 
86.4 	or for members other than members who were active members of the former Minneapolis 
86.5 	Police Relief Association on December 29, 2011, the employee contribution is an amount 
86.6 	equal to the following percentage of the total salary of each member, as follows: 9.6 percent 
86.7 	before calendar year 2014; 10.2 percent in calendar year 2014; and 10.8 percent in calendar 
86.8 	year 2015 and thereafter.

86.9		before January 1, 2018
	10.8 percent
	
86.10		from January 1, 2018, through December 31, 2018
	11.3 percent
	
86.11		from January 1, 2019, and thereafter
	11.8 percent
	
86.12 	(b) For members who were active members of the former Minneapolis Firefighters Relief 
86.13 	Association on December 29, 2011, the employee contribution is an amount equal to eight 
86.14 	percent of the monthly unit value under section 353.01, subdivision 10a, multiplied by 80 
86.15 	and expressed as a biweekly amount for each member. The employee contribution made 
86.16 	by a member with at least 25 years of service credit as an active member of the former 
86.17 	Minneapolis Firefighters Relief Association must be deposited in the postretirement health 
86.18 	care savings account established under section 352.98.
86.19 	(c) For members who were active members of the former Minneapolis Police Relief 
86.20 	Association on December 29, 2011, the employee contribution is an amount equal to eight 
86.21 	percent of the monthly unit value under section 353.01, subdivision 10b, multiplied by 80 
86.22 	and expressed as a biweekly amount for each member. The employee contribution made 
86.23 	by a member with at least 25 years of service credit as an active member of the former 
86.24 	Minneapolis Police Relief Association must be deposited in the postretirement health care 
86.25 	savings account established under section 352.98.
86.26 	(d) Contributions under this section must be made by deduction from salary in the manner 
86.27 	provided in subdivision 4. Where any portion of a member's salary is paid from other than 
86.28 	public funds, the member's employee contribution is based on the total salary received from 
86.29 	all sources.

86.30 	EFFECTIVE DATE. This section is effective July 1, 2017.

86.31 	Sec. 10. Minnesota Statutes 2016, section 353.65, subdivision 3, is amended to read:
86.32 		Subd. 3.Employer contribution. (a) With respect to members other than members who 
86.33 	were active members of the former Minneapolis Firefighters Relief Association on December 
87.1 	29, 2011, or for members other than members who were active members of the former 
87.2 	Minneapolis Police Relief Association on December 29, 2011, the employer contribution 
87.3 	is an amount equal to the following percentage of the total salary of each member, as follows: 
87.4 	14.4 percent before calendar year 2014; 15.3 percent in calendar year 2014; and 16.2 percent 
87.5 	in calendar year 2015 and thereafter.

87.6		before January 1, 2018
	16.2 percent
	
87.7		from January 1, 2018, through December 31, 2018
	16.95 percent
	
87.8		from January 1, 2019, and thereafter
	17.7 percent
	
87.9 	(b) With respect to members who were active members of the former Minneapolis 
87.10 	Firefighters Relief Association on December 29, 2011, the employer contribution is an 
87.11 	amount equal to the amount of the member contributions under subdivision 2, paragraph 
87.12 	(b).
87.13 	(c) With respect to members who were active members of the former Minneapolis Police 
87.14 	Relief Association on December 29, 2011, the employer contribution is an amount equal 
87.15 	to the amount of the member contributions under subdivision 2, paragraph (c).
87.16 	(d) Contributions under this subdivision must be made from funds available to the 
87.17 	employing subdivision by the means and in the manner provided in section 353.28.

87.18 	EFFECTIVE DATE. This section is effective July 1, 2017.

87.19 	Sec. 11. Minnesota Statutes 2016, section 354.42, subdivision 2, is amended to read:
87.20 		Subd. 2.Employee contribution. (a) The employee contribution to the fund is the 
87.21 	following percentage of the member's salary:

87.22		Period
	Basic Program
	Coordinated Program
	
87.23		from July 1, 2013, until June 30, 2014
	10.5 percent
	7 percent
	
87.24
87.25		after June 30, 2014 from July 1, 2014, 
through June 30, 2022
	11 percent
	7.5 percent
	
87.26		after June 30, 2022
	11.25 percent
	7.75 percent
	
87.27 	(b) When an employee contribution rate changes for a fiscal year, the new contribution 
87.28 	rate is effective for the entire salary paid for each employer unit with the first payroll cycle 
87.29 	reported.
87.30 	(c) After June 30, 2015, if a contribution rate revision is required under subdivisions 4a, 
87.31 	4b, and 4c, the employee contributions under paragraphs (a) and (b) must be adjusted 
87.32 	accordingly.
88.1 	(d) This contribution must be made by deduction from salary. Where any portion of a 
88.2 	member's salary is paid from other than public funds, the member's employee contribution 
88.3 	must be based on the entire salary received.

88.4 	EFFECTIVE DATE. If an appropriation is made to the Teachers Retirement Association 
88.5 	in the 2017 legislative session for the employer contribution increase in this act, this section 
88.6 	is effective the day following final enactment.

88.7 	Sec. 12. Minnesota Statutes 2016, section 354.42, subdivision 3, is amended to read:
88.8 		Subd. 3.Employer. (a) The regular employer contribution to the fund by Special School 
88.9 	District No. 1, Minneapolis, is an amount equal to the applicable following percentage of 
88.10 	salary of each coordinated member and the applicable percentage of salary of each basic 
88.11 	member specified in paragraph (c).
88.12 	The additional employer contribution to the fund by Special School District No. 1, 
88.13 	Minneapolis, is an amount equal to 3.64 percent of the salary of each teacher who is a 
88.14 	coordinated member or who is a basic member.
88.15 	(b) The regular employer contribution to the fund by Independent School District No. 
88.16 	709, Duluth, is an amount equal to the applicable percentage of salary of each old law or 
88.17 	new law coordinated member specified for the coordinated program in paragraph (c).
88.18 	(c) The employer contribution to the fund for every other employer is an amount equal 
88.19 	to the applicable following percentage of the salary of each coordinated member and the 
88.20 	applicable following percentage of the salary of each basic member:

88.21		Period
	Coordinated Member
		Basic Member
	
88.22		from July 1, 2013, until June 30, 2014
		7 percent
		11 percent
	
88.23
88.24		after June 30, 2014 from July 1, 2014, 
through June 30, 2017
		7.5 percent
		11.5 percent
	
88.25		from July 1, 2017, through June 30, 2018
		7.71 percent
		11.71 percent
	
88.26		from July 1, 2018, through June 30, 2019
		7.92 percent
		11.92 percent
	
88.27		from July 1, 2019, through June 30, 2020
		8.13 percent
		12.13 percent
	
88.28		from July 1, 2020, through June 30, 2021
		8.34 percent
		12.34 percent
	
88.29		from July 1, 2021, through June 30, 2022
		8.55 percent
		12.55 percent
	
88.30		after June 30, 2022
		8.75 percent
		12.75 percent
	
88.31 	(d) When an employer contribution rate changes for a fiscal year, the new contribution 
88.32 	rate is effective for the entire salary paid for each employer unit with the first payroll cycle 
88.33 	reported.
89.1 	(e) After June 30, 2015, if a contribution rate revision is made under subdivisions 4a, 
89.2 	4b, and 4c, the employer contributions under paragraphs (a), (b), and (c) must be adjusted 
89.3 	accordingly.

89.4 	EFFECTIVE DATE. If an appropriation is made to the Teachers Retirement Association 
89.5 	in the 2017 legislative session for the employer contribution increase in this act, this section 
89.6 	is effective the day following final enactment.

89.7 	Sec. 13. Minnesota Statutes 2016, section 354A.12, subdivision 1, is amended to read:
89.8 		Subdivision 1.Employee contributions. (a) The contribution required to be paid by 
89.9 	each member of the St. Paul Teachers Retirement Fund Association is the percentage of 
89.10 	total salary specified below for the applicable association and program:

89.11		Program
	Percentage of Total Salary
	
89.12	St. Paul Teachers Retirement Fund Association
		
89.13		basic program after June 30, 2014
	9 percent
	
89.14		basic program after June 30, 2015
	9.5 percent
	
89.15		basic program after June 30, 2016
	10 percent
	
89.16		basic program after June 30, 2021
	10.25 percent
	
89.17		coordinated program after June 30, 2014
	6.5 percent
	
89.18		coordinated program after June 30, 2015
	7 percent
	
89.19		coordinated program after June 30, 2016
	7.5 percent
	
89.20		coordinated program after June 30, 2021
	7.75 percent
	
89.21 	(b) Contributions must be made by deduction from salary and must be remitted directly 
89.22 	to the St. Paul Teachers Retirement Fund Association at least once each month.
89.23 	(c) When an employee contribution rate changes for a fiscal year, the new contribution 
89.24 	rate is effective for the entire salary paid by the employer with the first payroll cycle reported.

89.25 	EFFECTIVE DATE. This section is effective July 1, 2017.

89.26 	Sec. 14. Minnesota Statutes 2016, section 354A.12, subdivision 2a, is amended to read:
89.27 		Subd. 2a.Employer regular and additional contributions. (a) The employing units 
89.28 	shall make the following employer contributions to the teachers retirement fund association:
89.29 	(1) for anyeach coordinated member of the St. Paul Teachers Retirement Fund 
89.30 	Association, the employing unit shall make a regular employer contribution to the retirement 
89.31 	fund association in an amount equal to the designated percentage of the salary of the 
89.32 	coordinated member as provided below:

90.1		after June 30, 2014
	5.5 percent
	
90.2		after June 30, 2015
	6 percent
	
90.3		after June 30, 2016
	6.25 percent
	
90.4		after June 30, 2017
	6.57 percent
	
90.5		after June 30, 2018
	7.75 percent
	
90.6		after June 30, 2019
	8.25 percent
	
90.7		after June 30, 2020
	9 percent
	
90.8 	(2) for anyeach basic member of the St. Paul Teachers Retirement Fund Association, 
90.9 	the employing unit shall make a regular employer contribution to the respective retirement 
90.10 	fund in an amount according to the schedule below:

90.11		after June 30, 2014
	9 percent of salary
	
90.12		after June 30, 2015
	9.5 percent of salary
	
90.13		after June 30, 2016
	9.75 percent of salary
	
90.14		after June 30, 2017
	1010.5 percent of salary
	
90.15		after June 30, 2018
	11.25 percent of salary
	
90.16		after June 30, 2019
	11.75 percent of salary
	
90.17		after June 30, 2020
	12.5 percent of salary
	
90.18 	(3) for aeach basic member of the St. Paul Teachers Retirement Fund Association, the 
90.19 	employing unit shall make an additional employer contribution to the respective fund in an 
90.20 	amount equal to 3.64 percent of the salary of the basic member;
90.21 	(4) for aeach coordinated member of the St. Paul Teachers Retirement Fund Association, 
90.22 	the employing unit shall make an additional employer contribution to the respective fund 
90.23 	in an amount equal to 3.84 percent of the coordinated member's salary.
90.24 	(b) The regular and additional employer contributions must be remitted directly to the 
90.25 	St. Paul Teachers Retirement Fund Association at least once each month. Delinquent amounts 
90.26 	are payable with interest under the procedure in subdivision 1a.
90.27 	(c) Payments of regular and additional employer contributions for school district or 
90.28 	technical college employees who are paid from normal operating funds must be made from 
90.29 	the appropriate fund of the district or technical college.
90.30 	(d) When an employer contribution rate changes for a fiscal year, the new contribution 
90.31 	rate is effective for the entire salary paid by the employer with the first payroll cycle reported.

90.32 	EFFECTIVE DATE. This section is effective July 1, 2017.

91.1 	ARTICLE 8
91.2 	DIRECT STATE AID

91.3 	Section 1. Minnesota Statutes 2016, section 353.65, is amended by adding a subdivision 
91.4 	to read:
91.5 		Subd. 3b.Direct state aid. The state shall pay $4,500,000 on October 1, 2017, and 
91.6 	October 1, 2018, to the public employees police and fire retirement plan. By October 1 of 
91.7 	each year after 2018, the state shall pay to the public employees police and fire retirement 
91.8 	plan $9,000,000. The commissioner of management and budget shall pay the aid specified 
91.9 	in this subdivision. The amount required is appropriated annually from the general fund to 
91.10 	the commissioner of management and budget.

91.11 	Sec. 2. Minnesota Statutes 2016, section 354A.12, subdivision 3a, is amended to read:
91.12 		Subd. 3a. Direct state aid to first class city teachers retirement fund associations.
 91.13 	(a) The state shall pay $2,827,000 to the St. Paul Teachers Retirement Fund Association.
91.14 	(b) In addition to other amounts specified in this subdivision, the state shall pay 
91.15 	$7,000,000 as state aid to the St. Paul Teachers Retirement Fund Association.
91.16 	(c) In addition to the amounts specified in paragraphs (a) and (b), the state shall pay 
91.17 	$5,000,000 as state aid to the St. Paul Teachers Retirement Fund Association.
91.18 	(c)(d) The aid under this subdivision is payable October 1 annually. The commissioner 
91.19 	of management and budget shall pay the aid specified in this subdivision. The amount 
91.20 	required is appropriated annually from the general fund to the commissioner of management 
91.21 	and budget.

91.22 	EFFECTIVE DATE. This section is effective July 1, 2017.

91.23 	ARTICLE 9
91.24 	MINNESOTA STATE RETIREMENT SYSTEM
91.25 	ADMINISTRATIVE PROVISIONS

91.26 	Section 1. Minnesota Statutes 2016, section 3A.03, subdivision 2, is amended to read:
91.27 		Subd. 2.Refund.  (a) A former member who has made contributions under subdivision 
91.28 	1 and who is no longer a member of the legislature is entitled to receive, upon written 
91.29 	application to the executive director on a form prescribed by the executive director, a refund 
91.30 	from the general fund of all contributions credited to the member's account with interest 
91.31 	computed as provided in section 352.22, subdivision 2.
92.1 	(b) The refund of contributions as provided in paragraph (a) terminates all rights of a 
92.2 	former member of the legislature and the survivors of the former member under this chapter.
92.3 	(c) If the former member of the legislature again becomes a member of the legislature 
92.4 	after having taken a refund as provided in paragraph (a), the member is a member of the 
92.5 	unclassified employees retirement program of the Minnesota State Retirement System.
92.6 	(d) However, the member may reinstate the rights and credit for service previously 
92.7 	forfeited under this chapter if the member repays all refunds taken, plus interest at the rate 
92.8 	of 8.5 percent until June 30, 2015, and eight percent thereafter compounded annually from 
92.9 	the date on which the refund was taken to the date on which the refund is repaid. Repayment 
92.10 	must be made as provided in section 352.23, paragraph (d).
92.11 	(e) No person may be required to apply for or to accept a refund.

92.12 	EFFECTIVE DATE. This section is effective July 1, 2017.

92.13 	Sec. 2. Minnesota Statutes 2016, section 3A.03, subdivision 3, is amended to read:
92.14 		Subd. 3.Legislators retirement fund. (a) The legislators retirement fund, a special 
92.15 	retirement fund, is created within the state treasury. The legislators retirement fund must 
92.16 	be credited with any investment proceeds on the assets of the retirement fund.
92.17 	(b) The payment of annuities under section 3A.115, paragraph (b), is appropriated from 
92.18 	the legislators retirement fund.
92.19 	(c) The legislators retirement fund may receive transfers of general fund proceeds.

92.20 	EFFECTIVE DATE. This section is effective July 1, 2017.

92.21 	Sec. 3. Minnesota Statutes 2016, section 16A.14, subdivision 2a, is amended to read:
92.22 		Subd. 2a.Exceptions. The allotment and encumbrance system does not apply to:
92.23 	(1) appropriations for the courts or the legislature;
92.24 	(2) payment of unemployment benefits.; and
92.25 	(3) transactions within the defined contribution funds administered by the Minnesota 
92.26 	State Retirement System.

92.27 	EFFECTIVE DATE. This section is effective July 1, 2017.

92.28 	Sec. 4. Minnesota Statutes 2016, section 352.01, subdivision 2a, is amended to read:
92.29 		Subd. 2a.Included employees. (a) "State employee" includes:
93.1 	(1) employees of the Minnesota Historical Society;
93.2 	(2) employees of the State Horticultural Society;
93.3 	(3) employees of the Minnesota Crop Improvement Association;
93.4 	(4) employees of the adjutant general whose salaries are paid from federal funds and 
93.5 	who are not covered by any federal civilian employees retirement system;
93.6 	(5) employees of the Minnesota State Colleges and Universities who are employed under 
93.7 	the university or college activities program;
93.8 	(6) currently contributing employees covered by the system who are temporarily 
93.9 	employed by the legislature during a legislative session or any currently contributing 
93.10 	employee employed for any special service as defined in subdivision 2b, clause (6);
93.11 	(7) employees of the legislature who are appointed without a limit on the duration of 
93.12 	their employment;
93.13 	(8) trainees who are employed on a full-time established training program performing 
93.14 	the duties of the classified position for which they will be eligible to receive immediate 
93.15 	appointment at the completion of the training period;
93.16 	(9) employees of the Minnesota Safety Council;
93.17 	(10) any employees who are on authorized leave of absence from the Transit Operating 
93.18 	Division of the former Metropolitan Transit Commission and who are employed by the 
93.19 	labor organization which is the exclusive bargaining agent representing employees of the 
93.20 	Transit Operating Division;
93.21 	(11) employees of the Metropolitan Council, Metropolitan Parks and Open Space 
93.22 	Commission, Metropolitan Sports Facilities Commission, or Metropolitan Mosquito Control 
93.23 	Commission unless excluded under subdivision 2b or are covered by another public pension 
93.24 	fund or plan under section 473.415, subdivision 3;
93.25 	(12) judges of the Tax Court;
93.26 	(13) personnel who were employed on June 30, 1992, by the University of Minnesota 
93.27 	in the management, operation, or maintenance of its heating plant facilities, whose 
93.28 	employment transfers to an employer assuming operation of the heating plant facilities, so 
93.29 	long as the person is employed at the University of Minnesota heating plant by that employer 
93.30 	or by its successor organization;
93.31 	(14) personnel who are employed as seasonal employees in the classified or unclassified 
93.32 	service;
94.1 	(15) persons who are employed by the Department of Commerce as a peace officer in 
94.2 	the Commerce Fraud Bureau under section 45.0135 who have attained the mandatory 
94.3 	retirement age specified in section 43A.34, subdivision 4;
94.4 	(16) employees of the University of Minnesota unless excluded under subdivision 2b, 
94.5 	clause (3);
94.6 	(17) employees of the Middle Management Association whose employment began after 
94.7 	July 1, 2007, and to whom section 352.029 does not apply;
94.8 	(18) employees of the Minnesota Government Engineers Council to whom section 
94.9 	352.029 does not apply;
94.10 	(19) employees of the Minnesota Sports Facilities Authority;
94.11 	(20) employees of the Minnesota Association of Professional Employees;
94.12 	(21) employees of the Minnesota State Retirement System;
94.13 	(22) employees of the State Agricultural Society;
94.14 	(23) employees of the Gillette Children's Hospital Board who were employed in the 
94.15 	state unclassified service at the former Gillette Children's Hospital on March 28, 1974; and
94.16 	(24) if approved for coverage by the Board of Directors of Conservation Corps Minnesota, 
94.17 	employees of Conservation Corps Minnesota so employed on June 30, 2003.; and
94.18 	(25) employees of the Perpich Center for Arts Education who are covered by the general 
94.19 	state employees retirement plan of the Minnesota State Retirement System as of July 1, 
94.20 	2016.
94.21 	(b) Employees specified in paragraph (a), clause (13), are included employees under 
94.22 	paragraph (a) if employer and employee contributions are made in a timely manner in the 
94.23 	amounts required by section 352.04. Employee contributions must be deducted from salary. 
94.24 	Employer contributions are the sole obligation of the employer assuming operation of the 
94.25 	University of Minnesota heating plant facilities or any successor organizations to that 
94.26 	employer.

94.27 	EFFECTIVE DATE. This section is effective July 1, 2017.

94.28 	Sec. 5. Minnesota Statutes 2016, section 352.03, subdivision 5, is amended to read:
94.29 		Subd. 5.Executive director;, deputy director, and assistant director. (a) The board 
94.30 	shall appoint an executive director, in this chapter called the director, of the system must 
94.31 	be appointed by the board on the basis of fitness education, experience in the retirement 
95.1 	field, and leadership ability to manage and lead system staff, and ability to assist the board 
95.2 	in setting a vision for the system. The director must have had at least five years' experience 
95.3 	on the administrative staff of a major retirement system in either an executive level 
95.4 	management position or in a position with responsibility for the governance, management, 
95.5 	or administration of a retirement plan.
95.6 	(b) The executive director, deputy director, and assistant director must be in the 
95.7 	unclassified service but appointees may be selected from civil service lists if desired. 
95.8 	Notwithstanding any law to the contrary, the board must set the salary of the executive 
95.9 	director. The salary of the executive director must not exceed the limit for a position listed 
95.10 	in section 15A.0815, subdivision 2. The salary of the deputy director and assistant director 
95.11 	must be set in accordance with section 43A.18, subdivision 3.

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

95.13 	Sec. 6. Minnesota Statutes 2016, section 352.03, subdivision 6, is amended to read:
95.14 		Subd. 6.Duties and powers of executive director. The management of the system is 
95.15 	vested in the director, who is the executive and administrative head of the system. The 
95.16 	director may appoint a deputy director and an assistant director with the approval of the 
95.17 	board. The director shall be advisor to the board on matters pertaining to the system and 
95.18 	shall also act as the secretary of the board. The director shall:
95.19 	(1) attend meetings of the board;
95.20 	(2) prepare and recommend to the board appropriate rules to carry out this chapter;
95.21 	(3) establish and maintain an adequate system of records and accounts following 
95.22 	recognized accounting principles and controls;
95.23 	(4) designate an assistant director with the approval of the board;
95.24 	(5)(4) appoint any employees, both permanent and temporary, that are necessary to 
95.25 	carry out the provisions of this chapter;
95.26 	(6)(5) organize the work of the system as the director deems necessary to fulfill the 
95.27 	functions of the system, and define the duties of its employees and delegate to them any 
95.28 	powers or duties, subject to the control of the director and under conditions the director may 
95.29 	prescribe. Appointments to exercise delegated power must be by written order and shall be 
95.30 	filed with the secretary of state;
95.31 	(7)(6) with the advice and consent of the board, contract for the services of an approved 
95.32 	actuary, professional management services, and any other consulting services as necessary 
96.1 	and fix the compensation for those services. The contracts are not subject to competitive 
96.2 	bidding under chapter 16C. Any approved actuary retained by the executive director shall 
96.3 	function as the actuarial advisor of the board and the executive director, and may perform 
96.4 	actuarial valuations and experience studies to supplement those performed by the actuary 
96.5 	retained under section 356.214. Any supplemental actuarial valuations or experience studies 
96.6 	shall be filed with the executive director of the Legislative Commission on Pensions and 
96.7 	Retirement. Professional management services may not be contracted for more often than 
96.8 	once in six years. Copies of professional management survey reports must be transmitted 
96.9 	to the secretary of the senate, the chief clerk of the house of representatives, and the 
96.10 	Legislative Reference Library as provided by section 3.195, and to the executive director 
96.11 	of the commission at the time as reports are furnished to the board. Only management firms 
96.12 	experienced in conducting management surveys of federal, state, or local public retirement 
96.13 	systems are qualified to contract with the director;
96.14 	(8)(7) with the advice and consent of the board provide in-service training for the 
96.15 	employees of the system;
96.16 	(9)(8) make refunds of accumulated contributions to former state employees and to the 
96.17 	designated beneficiary, surviving spouse, legal representative, or next of kin of deceased 
96.18 	state employees or deceased former state employees, as provided in this chapter;
96.19 	(10)(9) determine the amount of the annuities and disability benefits of employees 
96.20 	covered by the system and authorize payment of the annuities and benefits beginning as of 
96.21 	the dates on which the annuities and benefits begin to accrue, in accordance with the 
96.22 	provisions of this chapter;
96.23 	(11)(10) pay annuities, refunds, survivor benefits, salaries, and necessary operating 
96.24 	expenses of the system;
96.25 	(12)(11) certify funds available for investment to the State Board of Investment;
96.26 	(13)(12) with the advice and approval of the board request the State Board of Investment 
96.27 	to sell securities when the director determines that funds are needed for the system;
96.28 	(14)(13) prepare and submit to the board and the legislature an annual financial report 
96.29 	covering the operation of the system, as required by section 356.20;
96.30 	(15)(14) prepare and submit biennial and annual budgets to the board and with the 
96.31 	approval of the board submit the budgets to the Department of Management and Budget; 
96.32 	and
97.1 	(16)(15) with the approval of the board, perform other duties required to administer the 
97.2 	retirement and other provisions of this chapter and to do its business.

97.3 	EFFECTIVE DATE. This section is effective July 1, 2017.

97.4 	Sec. 7. Minnesota Statutes 2016, section 352.113, subdivision 4, is amended to read:
97.5 		Subd. 4.Medical or psychological examinations; authorization for payment of 
97.6 	benefit. (a) Any physician, psychologist, chiropractor, or physician assistant, or nurse 
97.7 	practitioner providing any service specified in this section must be licensed.
97.8 	(b) An applicant shall provide a detailed report signed by a physician, and at least one 
97.9 	additional report signed by a physician, chiropractor, psychologist, orchiropractor, physician 
97.10 	assistant, or nurse practitioner with evidence to support an application for total and permanent 
97.11 	disability. The reports must include an expert opinion regarding whether the employee is 
97.12 	permanently and totally disabled within the meaning of section 352.01, subdivision 17, and 
97.13 	that the disability arose before the employee was placed on any paid or unpaid leave of 
97.14 	absence or terminated public service.
97.15 	(c) If there is medical evidence that supports the expectation that at some point the person 
97.16 	applying for the disability benefit will no longer be disabled, the decision granting the 
97.17 	disability benefit may provide for a termination date upon which the total and permanent 
97.18 	disability can be expected to no longer exist. When a termination date is part of the decision 
97.19 	granting benefits, prior to the benefit termination the executive director shall review any 
97.20 	evidence provided by the disabled employee to show that the disabling condition for which 
97.21 	benefits were initially granted continues. If the benefits cease, the disabled employee may 
97.22 	follow the appeal procedures described in section 356.96 or may reapply for disability 
97.23 	benefits using the process described in this subdivision.
97.24 	(d) Any claim to disability must be supported by a report from the employer indicating 
97.25 	that there is no available work that the employee can perform with the disabling condition 
97.26 	and that all reasonable accommodations have been considered. Upon request of the executive 
97.27 	director, an employer shall provide evidence of the steps the employer has taken to attempt 
97.28 	to provide reasonable accommodations and continued employment to the claimant.
97.29 	(e) The director shall also obtain written certification from the employer stating whether 
97.30 	the employment has ceased or whether the employee is on sick leave of absence because 
97.31 	of a disability that will prevent further service to the employer and that the employee is not 
97.32 	entitled to compensation from the employer.
98.1 	(f) The medical adviser shall consider the reports of the physicians, physician assistants, 
98.2 	psychologists, and chiropractorsphysician, psychologist, chiropractor, physician assistant, 
98.3 	or nurse practitioner and any other evidence supplied by the employee or other interested 
98.4 	parties. If the medical adviser finds the employee totally and permanently disabled, the 
98.5 	adviser shall make appropriate recommendation to the director in writing together with the 
98.6 	date from which the employee has been totally disabled. The director shall then determine 
98.7 	if the disability occurred within 18 months of filing the application, while still in the 
98.8 	employment of the state, and the propriety of authorizing payment of a disability benefit as 
98.9 	provided in this section and constitutes a total and permanent disability as defined in section 
98.10 	352.01, subdivision 17.
98.11 	(g) A terminated employee may apply for a disability benefit within 18 months of 
98.12 	termination as long as the disability occurred while in the employment of the state. The fact 
98.13 	that an employee is placed on leave of absence without compensation because of disability 
98.14 	does not bar that employee from receiving a disability benefit.
98.15 	(h) Upon appeal, the board of directors may extend the disability benefit application 
98.16 	deadline in paragraph (g) by an additional 18 months if the terminated employee is 
98.17 	determined by the board of directors to have a cognitive impairment that made it unlikely 
98.18 	that the terminated employee understood that there was an application deadline or that the 
98.19 	terminated employee was able to meet the application deadline.
98.20 	(h) (i) Unless the payment of a disability benefit has terminated because the employee 
98.21 	is no longer totally disabled, or because the employee has reached normal retirement age 
98.22 	as provided in this section, the disability benefit must cease with the last payment received 
98.23 	by the disabled employee or which had accrued during the lifetime of the employee unless 
98.24 	there is a spouse surviving. In that event, the surviving spouse is entitled to the disability 
98.25 	benefit for the calendar month in which the disabled employee died.

98.26 	EFFECTIVE DATE. This section is effective July 1, 2017.

98.27 	Sec. 8. Minnesota Statutes 2016, section 352.113, subdivision 14, is amended to read:
98.28 		Subd. 14.Disabilitant earnings reports. Disability benefit recipients must report all 
98.29 	earnings from reemployment and income from workers' compensation to the system annually 
98.30 	by May 15 in a format prescribed by the executive director. The executive director may 
98.31 	waive the earnings report requirement for any disabled employee who is not required to 
98.32 	undergo regular medical or psychological examinations under subdivision 6. If the form is 
98.33 	not submitted by June 15, benefits must be suspended effective July 1. If the form deemed 
99.1 	acceptable by the executive director is received after the June 15 deadline, benefits shall be 
99.2 	reinstated retroactive to July 1.

99.3 	EFFECTIVE DATE. This section is effective July 1, 2017.

99.4 	Sec. 9. Minnesota Statutes 2016, section 352.23, is amended to read:
99.5 	352.23 TERMINATION OF RIGHTS; REPAYMENT OF REFUND.
99.6 	(a) When any employee accepts a refund as provided in section 352.22, all existing 
99.7 	allowable service credits and all rights and benefits to which the employee was entitled 
99.8 	before accepting the refund terminate.
99.9 	(b) Terminated service credits and rights must not again be restored until the former 
99.10 	employee acquires at least six months of allowable service credit after taking the last refund. 
99.11 	In that event, the employee may repayand repays all refunds previously taken from the 
99.12 	retirement fund with interest as provided in paragraph (d).
99.13 	(c) Repayment of refunds entitles the employee only to credit for service covered by (1) 
99.14 	salary deductions; (2) payments previously made in lieu of salary deductions as permitted 
99.15 	under law in effect when the payment in lieu of deductions was made; (3) payments made 
99.16 	to obtain credit for service as permitted by laws in effect when payment was made; and (4) 
99.17 	allowable service previously credited while receiving temporary workers' compensation as 
99.18 	provided in section 352.01, subdivision 11, paragraph (a), clause (3).
99.19 	(d) Payments under this section for repayment of refunds are to be paid with interest at 
99.20 	the rate of 8.5 percent until June 30, 2015, and eight percent thereafter compounded annually 
99.21 	from the date the refund was taken until the date the refund is repaid. TheyRepayment may 
99.22 	be paid in a lump sum or by payroll deduction in the manner provided in section 352.04. 
99.23 	Payment may be made in partial payments consistent with section 356.44 during employment 
99.24 	or in a lump sum up to six months after termination from service.

99.25 	EFFECTIVE DATE. This section is effective July 1, 2017.

99.26 	Sec. 10. Minnesota Statutes 2016, section 352B.11, subdivision 4, is amended to read:
99.27 		Subd. 4.Reentry into state service. When a former member, who has become separated 
99.28 	from state service that entitled the member to membership and has received a refund of 
99.29 	retirement payments, reenters the state service in a position that entitles the member to 
99.30 	membership, that member shall receive credit for the period of prior allowable state service 
99.31 	if the member repays into the fund the amount of the refund, plus interest on it at the rate 
99.32 	of 8.5 percent until June 30, 2015, and eight percent thereafter compounded annually, at 
100.1 	any time before subsequent retirement. Repayment may be made in installments or in a 
100.2 	lump sum. Repayment must be made as provided in section 352.23, paragraph (d).

100.3 	EFFECTIVE DATE. This section is effective July 1, 2017.

100.4 	Sec. 11. Minnesota Statutes 2016, section 352D.02, subdivision 1, is amended to read:
100.5 		Subdivision 1.Coverage.  (a) Employees enumerated in paragraph (c), clauses (2), (3), 
100.6 	(4), (6) to (14), and (16) to (18), if they are in the unclassified service of the state or 
100.7 	Metropolitan Council and are eligible for coverage under the general state employees 
100.8 	retirement plan under chapter 352, are participants in the unclassified program under this 
100.9 	chapter unless the employee gives notice to the executive director of the Minnesota State 
100.10 	Retirement System within one year following the commencement of employment in the 
100.11 	unclassified service that the employee desires coverage under the general state employees 
100.12 	retirement plan. For the purposes of this chapter, an employee who does not file notice with 
100.13 	the executive director is deemed to have exercised the option to participate in the unclassified 
100.14 	program.
100.15 	(b) Persons referenced in paragraph (c), clause (5), are participants in the unclassified 
100.16 	program under this chapter unless the person was eligible to elect different coverage under 
100.17 	section 3A.07 and elected retirement coverage by the applicable alternative retirement plan. 
100.18 	Persons referenced in paragraph (c), clause (15), are participants in the unclassified program 
100.19 	under this chapter for judicial employment in excess of the service credit limit in section 
100.20 	490.121, subdivision 22.
100.21 	(c) Enumerated employees and referenced persons are:
100.22 	(1) the governor, the lieutenant governor, the secretary of state, the state auditor, and 
100.23 	the attorney general;
100.24 	(2) an employee in the Office of the Governor, Lieutenant Governor, Secretary of State, 
100.25 	State Auditor, Attorney General;
100.26 	(3) an employee of the State Board of Investment;
100.27 	(4) the head of a department, division, or agency created by statute in the unclassified 
100.28 	service, an acting department head subsequently appointed to the position, or an employee 
100.29 	enumerated in section 15A.0815 or 15A.083, subdivision 4;
100.30 	(5) a member of the legislature;
100.31 	(6) an unclassified employee of the legislature or a commission or agency of the 
100.32 	legislature who is appointed without a limit on the duration of the employment or a temporary 
101.1 	legislative employee having shares in the supplemental retirement fund as a result of former 
101.2 	employment covered by this chapter, whether or not eligible for coverage under the 
101.3 	Minnesota State Retirement System;
101.4 	(7) a person who is employed in a position established under section 43A.08, subdivision 
101.5 	1, clause (3), or in a position authorized under a statute creating or establishing a department 
101.6 	or agency of the state, which is at the deputy or assistant head of department or agency or 
101.7 	director level;
101.8 	(8) the regional administrator, or executive director of the Metropolitan Council, general 
101.9 	counsel, division directors, operations managers, and other positions as designated by the 
101.10 	council, all of which may not exceed 27 positions at the council and the chair;
101.11 	(9) the commissioner, deputy commissioner, and not to exceed nine positions of the 
101.12 	Minnesota Office of Higher Education in the unclassified service, as designated by the 
101.13 	Minnesota Office of Higher Education before January 1, 1992, or subsequently redesignated 
101.14 	with the approval of the board of directors of the Minnesota State Retirement System, unless 
101.15 	the person has elected coverage by the individual retirement account plan under chapter 
101.16 	354B;
101.17 	(10) the clerk of the appellate courts appointed under article VI, section 2, of the 
101.18 	Constitution of the state of Minnesota, the state court administrator and judicial district 
101.19 	administrators;
101.20 	(11) the chief executive officers of correctional facilities operated by the Department of 
101.21 	Corrections and of hospitals and nursing homes operated by the Department of Human 
101.22 	Services;
101.23 	(12) an employee whose principal employment is at the state ceremonial house;
101.24 	(13) an employee of the Agricultural Utilization Research Institute;
101.25 	(14) an employee of the State Lottery who is covered by the managerial plan established 
101.26 	under section 43A.18, subdivision 3;
101.27 	(15) a judge who has exceeded the service credit limit in section 490.121, subdivision 
101.28 	22;
101.29 	(16) an employee of Enterprise Minnesota, Inc.;
101.30 	(17) a person employed by the Minnesota State Colleges and Universities as faculty or 
101.31 	in an eligible unclassified administrative position as defined in section 354B.20, subdivision 
102.1 	6, who was employed by the former state university or the former community college system 
102.2 	before May 1, 1995, and elected unclassified program coverage prior to May 1, 1995; and
102.3 	(18) a person employed by the Minnesota State Colleges and Universities who was 
102.4 	employed in state service before July 1, 1995, who subsequently is employed in an eligible 
102.5 	unclassified administrative position as defined in section 354B.20, subdivision 6, and who 
102.6 	elects coverage by the unclassified program.

102.7 	EFFECTIVE DATE. This section is effective July 1, 2017.

102.8 	Sec. 12. Minnesota Statutes 2016, section 352D.02, subdivision 3, is amended to read:
102.9 		Subd. 3.Transfer to general employees retirement plan. (a) If permitted under 
102.10 	paragraph (b), an employeeA person in the unclassified program and referred to in 
102.11 	subdivision 1, paragraph (c), clauses (2) to (4), (6) to (14), and (16) to (18), who is credited 
102.12 	with shares in the unclassified program and has credit for allowable service may elect to 
102.13 	terminate participation in the unclassified program and be covered by the general state 
102.14 	employees retirement plan. (b) An employee specified in paragraph (a) is permitted to 
102.15 	terminate participation in the unclassified program and be covered byif the person files an 
102.16 	election to transfer to the general state employees retirement plan if the employee with the 
102.17 	executive director of the Minnesota State Retirement System as provided in paragraph (b) 
102.18 	and the person's current employment or appointment:
102.19 	(1) was employedbegan before July 1, 2010, and the person has at least ten years of 
102.20 	allowable service covered employment; or
102.21 	(2) was first employedbegan after June 30, 2010, and the person has no more than seven 
102.22 	years of allowable service in the unclassified program.
102.23 	The(b) An election to transfer must be in writing, on a form provided by the executive 
102.24 	director, and can be made no later than one month following the termination of covered 
102.25 	employment. delivered to the executive director:
102.26 	(1) for persons described in paragraph (a), clause (1), no later than one month following 
102.27 	the termination of covered employment; or
102.28 	(2) for persons described in paragraph (a), clause (2), no later than one month following 
102.29 	the termination of employment in a position covered by the unclassified program.
102.30 	For purposes of this chapter, an employee who does not file an election to transfer with 
102.31 	the executive director is deemed to have exercised the option to participate in the unclassified 
102.32 	program.
103.1 	(c) If the transfer election is made, the executive director shall redeem the employee's 
103.2 	total shares and credit to the employee's account in the general employees retirement plan 
103.3 	the amount of contributions that would have been credited had the employee been covered 
103.4 	by the general employees retirement plan during the employee's entire covered employment. 
103.5 	The balance of money redeemed and not credited to the employee's account must be 
103.6 	transferred to the general employees retirement plan, except that the executive director must 
103.7 	determine:
103.8 	(1) the employee contributions paid to the unclassified program; and
103.9 	(2) the employee contributions that would have been paid to the general employees 
103.10 	retirement plan for the comparable period, if the individual had been covered by that plan.
103.11 	If clause (1) is greater than clause (2), the difference must be refunded to the employee 
103.12 	as provided in section 352.22. If clause (2) is greater than clause (1), the difference must 
103.13 	be paid by the employee within six months of electing general employees retirement plan 
103.14 	coverage or before the effective date of the annuity, whichever is sooner.
103.15 	(d) An election under paragraph (b) to transfer coverage to the general employees 
103.16 	retirement plan is irrevocable during any period of covered employment.
103.17 	(e) A person referenced in subdivision 1, paragraph (c), clause (1), (5), or (15), who is 
103.18 	credited with employee shares in the unclassified program is not permitted to terminate 
103.19 	participation in the unclassified program and be covered by the general employees retirement 
103.20 	plan.

103.21 	EFFECTIVE DATE. This section is effective July 1, 2017.

103.22 	Sec. 13. Minnesota Statutes 2016, section 352D.05, subdivision 4, is amended to read:
103.23 		Subd. 4.Repayment of refund. (a) A participant in the unclassified program may repay 
103.24 	regular refunds taken under section 352.22, as provided in section 352.23.
103.25 	(b) A participant in the unclassified program or an employee covered by the general 
103.26 	employees retirement plan who has withdrawn the value of the total shares may repay the 
103.27 	refund taken and thereupon restore the service credit, rights and benefits forfeited by paying 
103.28 	into the fund the amount refunded plus interest at the rate of 8.5 percent until June 30, 2015, 
103.29 	and eight percent thereafter compounded annually from the date that the refund was taken 
103.30 	until the date that the refund is repaid. If the participant had withdrawn only the employee 
103.31 	shares as permitted under prior laws, repayment must be pro rata.
104.1 	(c) Except as provided in section 356.441, the repayment of a refund under this section 
104.2 	must be made in a lump sum Repayment must be made as provided in section 352.23, 
104.3 	paragraph (d).

104.4 	EFFECTIVE DATE. This section is effective July 1, 2017.

104.5 	Sec. 14. Minnesota Statutes 2016, section 490.124, subdivision 12, is amended to read:
104.6 		Subd. 12.Refund.  (a) A person who ceases to be a judge is entitled to a refund in an 
104.7 	amount that is equal to all of the member's employee contributions to the judges' retirement 
104.8 	fund plus interest computed under section 352.22, subdivision 2.
104.9 	(b) A refund of contributions under paragraph (a) terminates all service credits and all 
104.10 	rights and benefits of the judge and the judge's survivors under this chapter.
104.11 	(c) A person who becomes a judge again after taking a refund under paragraph (a) may 
104.12 	reinstate the previously terminated allowable service credit, rights, and benefits by repaying 
104.13 	the total amount of the previously received refund. The refund repayment must include 
104.14 	interest on the total amount previously received at the annual rate of 8.5 percent until June 
104.15 	30, 2015, and eight percent thereafter, compounded annually, from the date on which the 
104.16 	refund was received until the date on which the refund is repaid. Repayment must be made 
104.17 	as provided in section 352.23, paragraph (d).

104.18 	EFFECTIVE DATE. This section is effective July 1, 2017.

104.19 	ARTICLE 10
104.20 	PUBLIC EMPLOYEES RETIREMENT ASSOCIATION
104.21 	ADMINISTRATIVE PROVISIONS

104.22 	Section 1. Minnesota Statutes 2016, section 353.01, subdivision 2b, is amended to read:
104.23 		Subd. 2b.Excluded employees. (a) The following public employees are not eligible to 
104.24 	participate as members of the association with retirement coverage by the general employees 
104.25 	retirement plan, the local government correctional employees retirement plan under chapter 
104.26 	353E, or the public employees police and fire retirement plan:
104.27 	(1) persons whose annual salary from one governmental subdivision never exceeds an 
104.28 	amount, stipulated in writing in advance, of $5,100 if the person is not a school district 
104.29 	employee or $3,800 if the person is a school year employee. If annual compensation from 
104.30 	one governmental subdivision to an employee exceeds the stipulated amount in a calendar 
104.31 	year or a school year, whichever applies, after being stipulated in advance not to exceed the 
104.32 	applicable amount, the stipulation is no longer valid and contributions must be made on 
105.1 	behalf of the employee under section 353.27, subdivision 12, from the first month in which 
105.2 	the employee received salary exceeding $425 in a month;
105.3 	(2) public officers who are elected to a governing body, city mayors, or persons who 
105.4 	are appointed to fill a vacancy in an electiveelected office of a governing body, whose term 
105.5 	of office commences on or after July 1, 2002, for the service to be rendered in that elective
105.6 	elected position;
105.7 	(3) election judges and persons employed solely to administer elections;
105.8 	(4) patient and inmate personnel who perform services for a governmental subdivision;
105.9 	(5) except as otherwise specified in subdivision 12a, employees who are employed solely 
105.10 	in a temporary position as defined under subdivision 12a, and employees who resign from 
105.11 	a nontemporary position and accept a temporary position within 30 days of that resignation 
105.12 	in the same governmental subdivision;
105.13 	(6) employees who are employed by reason of work emergency caused by fire, flood, 
105.14 	storm, or similar disaster, but if the person becomes a probationary or provisional employee 
105.15 	within the same pay period, other than on a temporary basis, the person is a "public 
105.16 	employee" retroactively to the beginning of the pay period;
105.17 	(7) employees who by virtue of their employment in one governmental subdivision are 
105.18 	required by law to be a member of and to contribute to any of the plans or funds administered 
105.19 	by the Minnesota State Retirement System, the Teachers Retirement Association, or the St. 
105.20 	Paul Teachers Retirement Fund Association, but this exclusion must not be construed to 
105.21 	prevent a person from being a member of and contributing to the Public Employees 
105.22 	Retirement Association and also belonging to and contributing to another public pension 
105.23 	plan or fund for other service occurring during the same period of time, and a person who 
105.24 	meets the definition of "public employee" in subdivision 2 by virtue of other service occurring 
105.25 	during the same period of time becomes a member of the association unless contributions 
105.26 	are made to another public retirement plan on the salary based on the other service or to the 
105.27 	Teachers Retirement Association by a teacher as defined in section 354.05, subdivision 2;
105.28 	(8) persons who are members of a religious order and are excluded from coverage under 
105.29 	the federal Old Age, Survivors, Disability, and Health Insurance Program for the performance 
105.30 	of service as specified in United States Code, title 42, section 410(a)(8)(A), as amended, if 
105.31 	no irrevocable election of coverage has been made under section 3121(r) of the Internal 
105.32 	Revenue Code of 1954, as amended;
105.33 	(9) persons who are:
106.1 	(i) employed by a governmental subdivision who have not reached the age of 23 and 
106.2 	who are enrolled on a full-time basis to attend or are attending classes on a full-time basis 
106.3 	at an accredited school, college, or university in an undergraduate, graduate, or 
106.4 	professional-technical program, or at a public or charter high school;
106.5 	(ii) employed as resident physicians, medical interns, pharmacist residents, or pharmacist 
106.6 	interns and are serving in a degree or residency program in a public hospital or in a public 
106.7 	clinic; or
106.8 	(iii) students who are serving for a period not to exceed five years in an internship or a 
106.9 	residency program that is sponsored by a governmental subdivision, including an accredited 
106.10 	educational institution;
106.11 	(10) persons who hold a part-time adult supplementary technical college license who 
106.12 	render part-time teaching service in a technical college;
106.13 	(11) except for employees ofFor the first three years of employment, foreign citizens 
106.14 	who are employed by a governmental subdivision, other than Hennepin County or employees 
106.15 	of Hennepin Healthcare System, Inc., foreign citizens who are employed by a governmental 
106.16 	subdivision under aone or more work permitpermits or under an H-1b visa initially issued 
106.17 	or extended for a combined period of less than three years of employment but upon extension 
106.18 	of the employment of thevisa beyond the three-year period, the foreign citizen must be 
106.19 	reported for membership beginning on the first of the month following the extension if the 
106.20 	monthly earnings threshold as provided under subdivision 2a, paragraph (a), is metwork 
106.21 	visas;
106.22 	(12) public hospital employees who elected not to participate as members of the 
106.23 	association before 1972 and who did not elect to participate from July 1, 1988, to October 
106.24 	1, 1988;
106.25 	(13) except as provided in section 353.86, volunteer ambulance service personnel, as 
106.26 	defined in subdivision 35, but persons who serve as volunteer ambulance service personnel 
106.27 	may still qualify as public employees under subdivision 2 and may be members of the Public 
106.28 	Employees Retirement Association and participants in the general employees retirement 
106.29 	plan or the public employees police and fire plan, whichever applies, on the basis of 
106.30 	compensation received from public employment service other than service as volunteer 
106.31 	ambulance service personnel;
106.32 	(14) except as provided in section 353.87, volunteer firefighters, as defined in subdivision 
106.33 	36, engaging in activities undertaken as part of volunteer firefighter duties, but a person 
106.34 	who is a volunteer firefighter may still qualify as a public employee under subdivision 2 
107.1 	and may be a member of the Public Employees Retirement Association and a participant 
107.2 	in the general employees retirement plan or the public employees police and fire plan, 
107.3 	whichever applies, on the basis of compensation received from public employment activities 
107.4 	other than those as a volunteer firefighter;
107.5 	(15) pipefitters and associated trades personnel employed by Independent School District 
107.6 	No. 625, St. Paul, with coverage under a collective bargaining agreement by the pipefitters 
107.7 	local 455 pension plan who were either first employed after May 1, 1997, or, if first employed 
107.8 	before May 2, 1997, elected to be excluded under Laws 1997, chapter 241, article 2, section 
107.9 	12;
107.10 	(16) electrical workers, plumbers, carpenters, and associated trades personnel who are 
107.11 	employed by Independent School District No. 625, St. Paul, or the city of St. Paul, who 
107.12 	have retirement coverage under a collective bargaining agreement by the Electrical Workers 
107.13 	Local 110 pension plan, the United Association Plumbers Local 34 pension plan, or the 
107.14 	pension plan applicable to Carpenters Local 322 who were either first employed after May 
107.15 	1, 2000, or, if first employed before May 2, 2000, elected to be excluded under Laws 2000, 
107.16 	chapter 461, article 7, section 5;
107.17 	(17) bricklayers, allied craftworkers, cement masons, glaziers, glassworkers, painters, 
107.18 	allied tradesworkers, and plasterers who are employed by the city of St. Paul or Independent 
107.19 	School District No. 625, St. Paul, with coverage under a collective bargaining agreement 
107.20 	by the Bricklayers and Allied Craftworkers Local 1 pension plan, the Cement Masons Local 
107.21 	633 pension plan, the Glaziers and Glassworkers Local L-1324 pension plan, the Painters 
107.22 	and Allied Trades Local 61 pension plan, or the Twin Cities Plasterers Local 265 pension 
107.23 	plan who were either first employed after May 1, 2001, or if first employed before May 2, 
107.24 	2001, elected to be excluded under Laws 2001, First Special Session chapter 10, article 10, 
107.25 	section 6;
107.26 	(18) plumbers who are employed by the Metropolitan Airports Commission, with 
107.27 	coverage under a collective bargaining agreement by the Plumbers Local 34 pension plan, 
107.28 	who either were first employed after May 1, 2001, or if first employed before May 2, 2001, 
107.29 	elected to be excluded under Laws 2001, First Special Session chapter 10, article 10, section 
107.30 	6;
107.31 	(19) employees who are hired after June 30, 2002, solely to fill seasonal positions under 
107.32 	subdivision 12b which are limited in duration by the employer to 185 consecutive calendar 
107.33 	days or less in each year of employment with the governmental subdivision;
108.1 	(20) persons who are provided supported employment or work-study positions by a 
108.2 	governmental subdivision and who participate in an employment or industries program 
108.3 	maintained for the benefit of these persons where the governmental subdivision limits the 
108.4 	position's duration to up to five years, including persons participating in a federal or state 
108.5 	subsidized on-the-job training, work experience, senior citizen, youth, or unemployment 
108.6 	relief program where the training or work experience is not provided as a part of, or for, 
108.7 	future permanent public employment;
108.8 	(21) independent contractors and the employees of independent contractors;
108.9 	(22) reemployed annuitants of the association during the course of that reemployment;
108.10 	(23) persons appointed to serve on a board or commission of a governmental subdivision 
108.11 	or an instrumentality thereof;
108.12 	(24) persons employed as full-time fixed-route bus drivers by the St. Cloud Metropolitan 
108.13 	Transit Commission who are members of the International Brotherhood of Teamsters Local 
108.14 	638 and who are, by virtue of that employment, members of the International Brotherhood 
108.15 	of Teamsters Central States pension plan; and
108.16 	(25) electricians or pipefitters employed by the Minneapolis Park and Recreation Board, 
108.17 	with coverage under a collective bargaining agreement by the IBEW local 292, or pipefitters 
108.18 	local 539 pension plan, who were first employed before May 2, 2015, and who elected to 
108.19 	be excluded under Laws 2015, chapter 68, article 11, section 5.
108.20 	(b) Any person performing the duties of a public officer in a position defined in 
108.21 	subdivision 2a, paragraph (a), clause (3), is not an independent contractor and is not an 
108.22 	employee of an independent contractor.

108.23 	EFFECTIVE DATE. This section is effective July 1, 2017.

108.24 	Sec. 2. Minnesota Statutes 2016, section 353.01, subdivision 10, is amended to read:
108.25 		Subd. 10.Salary. (a) Subject to the limitations of section 356.611, "salary" means:
108.26 	(1) the wages or periodic compensation payable to a public employee by the employing 
108.27 	governmental subdivision before:
108.28 	(i) employee retirement deductions that are designated as picked-up contributions under 
108.29 	section 356.62;
108.30 	(ii) any employee-elected deductions for deferred compensation, supplemental retirement 
108.31 	plans, or other voluntary salary reduction programs that would have otherwise been available 
108.32 	as a cash payment to the employee; and
109.1 	(iii) employee deductions for contributions to a supplemental plan or to a governmental 
109.2 	trust established under section 356.24, subdivision 1, clause (7), to save for postretirement 
109.3 	health care expenses, unless otherwise excluded under paragraph (b);
109.4 	(2) for a public employee who is covered by a supplemental retirement plan under section 
109.5 	356.24, subdivision 1, clause (8), (9), (10), or (12), the employer contributions to the 
109.6 	applicable supplemental retirement plan when an agreement between the parties establishes 
109.7 	that the contributions will either result in a mandatory reduction of employees' wages through 
109.8 	payroll withholdings, or be made in lieu of an amount that would otherwise be paid as 
109.9 	wages;
109.10 	(3) a payment from a public employer through a grievance proceeding, settlement, or 
109.11 	court order that is attached to a specific earnings period in which the employee's regular 
109.12 	salary was not earned or paid to the member due to a suspension or a period of involuntary 
109.13 	termination that is not a wrongful discharge under section 356.50; provided the amount is 
109.14 	not less than the equivalent of the average of the hourly base salary rate in effect during the 
109.15 	last six months of allowable service prior to the suspension or period of involuntary 
109.16 	termination, plus any applicable increases awarded during the period that would have been 
109.17 	paid under a collective bargaining agreement or personnel policy but for the suspension or 
109.18 	involuntary termination, multiplied by the average number of regular hours for which the 
109.19 	employee was compensated during the six months of allowable service prior to the suspension 
109.20 	or period of involuntary termination, but not to exceed the compensation that the public 
109.21 	employee would have earned if regularly employed during the applicable period;
109.22 	(4) for a member who is absent from employment due tocompensation paid during an 
109.23 	authorized leave of absence, other than an authorized medical leave of absence, as long as 
109.24 	the compensation paid during the leave if equivalent toa pay period is not less than the 
109.25 	lesser of:
109.26 	(i) the product of the average hourly base salary rate in effect during the six months of 
109.27 	allowable service, or portions thereof, prior toimmediately preceding the leave, multiplied 
109.28 	by the average number of regular hours for which the employee was compensated each pay 
109.29 	period during the six months of allowable service prior toimmediately preceding the 
109.30 	applicable leave of absence; or
109.31 	(ii) compensation equal to the value of the employee's total available accrued leave 
109.32 	hours;
109.33 	(5) for a member who is absent from employment by reason ofcompensation paid during 
109.34 	an authorized medical leave of absence, other than a workers' compensation leave, as long 
110.1 	as the compensation paid during the leave if specified in advance to be at leasta pay period 
110.2 	is not less than the lesser of:
110.3 	(i) the product of one-half of, but no more than equal to, the earnings the member 
110.4 	received, on which contributions were reported and allowable service creditedthe average 
110.5 	hourly base salary rate in effect during the six months of allowable service immediately 
110.6 	preceding the medical leave of absence; and or
110.7 	(ii) compensation equal to the value of the employee's total available accrued leave 
110.8 	hours;
110.9 	(6) for a public employee who receives performance or merit bonus payment under a 
110.10 	written compensation plan, policy, or collective bargaining agreement in addition to regular 
110.11 	salary or in lieu of regular salary increases, the compensation paid to the employee for 
110.12 	attaining or exceeding performance goals, duties, or measures during a specified period of 
110.13 	employment.
110.14 	(b) Salary does not mean:
110.15 	(1) fees paid to district court reporters;
110.16 	(2) unused annual leave, vacation, or sick leave payments, in the form of lump-sum or 
110.17 	periodic payments;
110.18 	(3) for the donor, payment to another person of the value of hours donated under a 
110.19 	benevolent vacation, personal, or sick leave donation program;
110.20 	(4) any form of severance or retirement incentive payments;
110.21 	(5) an allowance payment or per diem payments for or reimbursement of expenses;
110.22 	(6) lump-sum settlements not attached to a specific earnings period;
110.23 	(7) workers' compensation payments or disability insurance payments, including payments 
110.24 	from employer self-insurance arrangements;
110.25 	(8) employer-paid amounts used by an employee toward the cost of insurance coverage, 
110.26 	flexible spending accounts, cafeteria plans, health care expense accounts, day care expenses, 
110.27 	or any payments in lieu of any employer-paid group insurance coverage, including the 
110.28 	difference between single and family rates that may be paid to a member with single coverage 
110.29 	and certain amounts determined by the executive director to be ineligible;
110.30 	(9) employer-paid fringe benefits, including, but not limited to:
111.1 	(i) employer-paid premiums or supplemental contributions for employees for all types 
111.2 	of insurance;
111.3 	(ii) membership dues or fees for the use of fitness or recreational facilities;
111.4 	(iii) incentive payments or cash awards relating to a wellness program;
111.5 	(iv) the value of any nonmonetary benefits;
111.6 	(v) any form of payment made in lieu of an employer-paid fringe benefit;
111.7 	(vi) an employer-paid amount made to a deferred compensation or tax-sheltered annuity 
111.8 	program; and
111.9 	(vii) any amount paid by the employer as a supplement to salary, either as a lump-sum 
111.10 	amount or a fixed or matching amount paid on a recurring basis, that is not available to the 
111.11 	employee as cash;
111.12 	(10) the amount equal to that which the employing governmental subdivision would 
111.13 	otherwise pay toward single or family insurance coverage for a covered employee when, 
111.14 	through a contract or agreement with some but not all employees, the employer:
111.15 	(i) discontinues, or for new hires does not provide, payment toward the cost of the 
111.16 	employee's selected insurance coverages under a group plan offered by the employer;
111.17 	(ii) makes the employee solely responsible for all contributions toward the cost of the 
111.18 	employee's selected insurance coverages under a group plan offered by the employer, 
111.19 	including any amount the employer makes toward other employees' selected insurance 
111.20 	coverages under a group plan offered by the employer; and
111.21 	(iii) provides increased salary rates for employees who do not have any employer-paid 
111.22 	group insurance coverages;
111.23 	(11) except as provided in section 353.86 or 353.87, compensation of any kind paid to 
111.24 	volunteer ambulance service personnel or volunteer firefighters, as defined in subdivision 
111.25 	35 or 36;
111.26 	(12) the amount of compensation that exceeds the limitation provided in section 356.611;
111.27 	(13) amounts paid by a federal or state grant for which the grant specifically prohibits 
111.28 	grant proceeds from being used to make pension plan contributions, unless the contributions 
111.29 	to the plan are made from sources other than the federal or state grant; and
111.30 	(14) bonus pay that is not performance or merit pay under paragraph (a), clause (6).
112.1 	(c) Amounts, other than those provided under paragraph (a), clause (3), provided to an 
112.2 	employee by the employer through a grievance proceeding, a court order, or a legal settlement 
112.3 	are salary only if the settlement or court order is reviewed by the executive director and the 
112.4 	amounts are determined by the executive director to be consistent with paragraph (a) and 
112.5 	prior determinations.

112.6 	EFFECTIVE DATE. This section is effective July 1, 2017.

112.7 	Sec. 3. Minnesota Statutes 2016, section 353.01, subdivision 47, is amended to read:
112.8 		Subd. 47.Vesting. (a) "Vesting" means obtaining a nonforfeitable entitlement to an 
112.9 	annuity or benefit from a retirement plan administered by the Public Employees Retirement 
112.10 	Association by having credit for sufficient allowable service under paragraph (b), (c), or 
112.11 	(d), whichever applies.
112.12 	(b) For purposes of qualifying for an annuity or benefit as a basic or coordinated plan 
112.13 	member of the general employees retirement plan of the Public Employees Retirement 
112.14 	Association:
112.15 	(1) a public employee who first became a member of the association before July 1, 2010, 
112.16 	is 100 percent vested when the person has accrued credit for not less than three years of 
112.17 	allowable service as defined under subdivision 16 in the general employees retirement plan; 
112.18 	and
112.19 	(2) a public employee who first becomes a member of the association after June 30, 
112.20 	2010, is 100 percent vested when the person has accrued credit for not less than five years 
112.21 	of allowable service as defined under subdivision 16 in the general employees retirement 
112.22 	plan.
112.23 	(c) For purposes of qualifying for an annuity or benefit as a member of the local 
112.24 	government correctional employeesservice retirement plan:
112.25 	(1) a public employee who first became a member of the association before July 1, 2010, 
112.26 	is 100 percent vested when the person has accrued credit for not less than three years of 
112.27 	allowable service as defined under subdivision 16 in the local government correctional 
112.28 	service retirement plan; and
112.29 	(2) a public employee who first becomes a member of the association after June 30, 
112.30 	2010, is vested at the following percentages when the person has accrued creditedcredit 
112.31 	for allowable service as defined under subdivision 16, as follows in the local government 
112.32 	correctional service retirement plan, as follows:
113.1 	(i) 50 percent after five years;
113.2 	(ii) 60 percent after six years;
113.3 	(iii) 70 percent after seven years;
113.4 	(iv) 80 percent after eight years;
113.5 	(v) 90 percent after nine years; and
113.6 	(vi) 100 percent after ten years.
113.7 	(d) For purposes of qualifying for an annuity or benefit as a member of the public 
113.8 	employees police and fire retirement plan:
113.9 	(1) a public employee who first became a member of the association before July 1, 2010, 
113.10 	is 100 percent vested when the person has accrued credit for not less than three years of 
113.11 	allowable service as defined under subdivision 16 in the public employees police and fire 
113.12 	retirement plan;
113.13 	(2) a public employee who first becomes a member of the association after June 30, 
113.14 	2010, and before July 1, 2014, is vested at the following percentages when the person has 
113.15 	accrued credited allowable service as defined under subdivision 16 in the public employees 
113.16 	police and fire retirement plan, as follows:
113.17 	(i) 50 percent after five years;
113.18 	(ii) 60 percent after six years;
113.19 	(iii) 70 percent after seven years;
113.20 	(iv) 80 percent after eight years;
113.21 	(v) 90 percent after nine years; and
113.22 	(vi) 100 percent after ten years; and
113.23 	(3) a public employee who first becomes a member of the association after June 30, 
113.24 	2014, is vested at the following percentages when the person has accrued creditedcredit 
113.25 	for allowable service as defined under subdivision 16 in the public employees police and 
113.26 	fire retirement plan, as follows:
113.27 	(i) 50 percent after ten years;
113.28 	(ii) 55 percent after 11 years;
113.29 	(iii) 60 percent after 12 years;
113.30 	(iv) 65 percent after 13 years;
114.1 	(v) 70 percent after 14 years;
114.2 	(vi) 75 percent after 15 years;
114.3 	(vii) 80 percent after 16 years;
114.4 	(viii) 85 percent after 17 years;
114.5 	(ix) 90 percent after 18 years;
114.6 	(x) 95 percent after 19 years; and
114.7 	(xi) 100 percent after 20 or more years.

114.8 	EFFECTIVE DATE. This section is effective July 1, 2017.

114.9 	Sec. 4. Minnesota Statutes 2016, section 353.0162, is amended to read:
114.10 	353.0162 REDUCED SALARY PERIODS SALARY CREDIT PURCHASE FOR 
114.11 	PERIODS OF REDUCED SALARY.
114.12 	(a) A member may purchase additionaldifferential salary credit, as described in paragraph 
114.13 	(c), for a period specified in this section paragraph (b).
114.14 	(b) The applicable period is a period during which the member is receiving ano or 
114.15 	reduced salary from the employer while the member is:
114.16 	(1) receiving temporary workers' compensation payments related to the member's service 
114.17 	to the public employer;
114.18 	(2) on an authorized leave of absence, except that if the authorized leave of absence 
114.19 	exceeds 12 months, the period of leave for which differential salary credit may be purchased 
114.20 	is limited to 12 months; or
114.21 	(3) on an authorized partial paid leave of absence as a result of a budgetary or salary 
114.22 	savings program offered or mandated by a governmental subdivision, if certified to the 
114.23 	executive director by the governmental subdivision.
114.24 	(c) The Differential salary amountcredit is the difference between the average monthly
114.25 	salary received by the member during thea period of reduced salary under this section
114.26 	specified in paragraph (b) and the average monthly salary of the member, excluding overtime, 
114.27 	on which contributions to the applicable plan werewould have been made during the period 
114.28 	of the last six months of covered employment occurring immediately before the period of 
114.29 	reduced salary, applied tobased on the member's normal employment period, measured in 
114.30 	hours or otherwise, as applicable, and rate of pay.
115.1 	(d) To receive eligibledifferential salary credit, the member shall pay the plan, by 
115.2 	delivering payment to the executive director, an amount equal to:
115.3 	(1) the applicable employee contribution rate under section 353.27, subdivision 2; 353.65, 
115.4 	subdivision 2; or 353E.03, subdivision 1, as applicable, multiplied by the differential salary 
115.5 	amount;
115.6 	(2) plus an employer equivalent payment equal to the applicable employer contribution 
115.7 	rate in section 353.27, subdivision 3; 353.65, subdivision 3; or 353E.03, subdivision 2, as 
115.8 	applicable, multiplied by the differential salary amount;
115.9 	(3) plus, if applicable, an equivalent employer additional amount equal to the additional 
115.10 	employer contribution rate in section 353.27, subdivision 3a, multiplied by the differential 
115.11 	salary amount.
115.12 	(e) The employer, by appropriate action of its governing body and documented in its 
115.13 	official records, may pay the employer equivalent contributions and, as applicable, the 
115.14 	equivalent employer additional contributions on behalf of the member.
115.15 	(f) Payment under this section must include interest on the contribution amount or 
115.16 	amounts, whichever applies, at an 8.5 percent annual rate until June 30, 2015, and at an 
115.17 	eight percent annual rate thereafter, prorated for applicable months from the date on which 
115.18 	the period of reduced salary specified under this sectionin paragraph (b) terminates to the 
115.19 	date on which the payment or payments are received by the executive director. Payment 
115.20 	under this section must be completed withinby the earlierearliest of:
115.21 	(1) 30 days fromafter termination of public service by the employee under section 
115.22 	353.01, subdivision 11a, or;
115.23 	(2) one year after the termination of the period specified in paragraph (b), as further 
115.24 	restricted under this section.; or
115.25 	(3) 30 days after the commencement of a disability benefit.
115.26 	(g) The period for which additional allowable salary credit may be purchased is limited 
115.27 	to the period during which the person receives temporary workers' compensation payments 
115.28 	or for those business years in which the governmental subdivision offers or mandates a 
115.29 	budget or salary savings program, as certified to the executive director by a resolution of 
115.30 	the governing body of the governmental subdivision. For an authorized leave of absence, 
115.31 	the period for which allowable salary credit may be purchased may not exceed 12 months 
115.32 	of authorized leave.
116.1 	(h) To purchase(g) If the member has purchased 12 months of differential salary credit
116.2 	for a subsequent period of temporary workers' compensation benefits or subsequent 
116.3 	authorized medical leave of absence, the member must return to public service and render 
116.4 	a minimum of three months of allowable service to purchase differential salary credit for a 
116.5 	subsequent leave of absence.

116.6 	EFFECTIVE DATE. This section is effective July 1, 2017.

116.7 	Sec. 5. Minnesota Statutes 2016, section 353.03, subdivision 3, is amended to read:
116.8 		Subd. 3.Duties and powers. (a) The board shall:
116.9 	(1) elect a president and vice-president;
116.10 	(2) approve the staffing complement, as recommended by the executive director, 
116.11 	necessary to administer the fund;
116.12 	(3) adopt bylaws for its own government and for the management of the fund consistent 
116.13 	with the laws of the state and may modify them at pleasure;
116.14 	(4) adopt, alter, and enforce reasonable rules consistent with the laws of the state and 
116.15 	the terms of the applicable benefit plans for the administration and management of the fund, 
116.16 	for the payment and collection of payments from members and for the payment of 
116.17 	withdrawals and benefits, and that are necessary in order to comply with the applicable 
116.18 	federal Internal Revenue Service and Department of Labor requirements;
116.19 	(5) pass upon and allow or disallow all applications for membership in the fund and 
116.20 	allow or disallow claims for withdrawals, pensions, or benefits payable from the fund;
116.21 	(6) authorize procedures for use of electronic signatures as defined in section 325L.02, 
116.22 	paragraph (h), on applications and forms required by the association;
116.23 	(7)(6) adopt an appropriate mortality table based on experience of the fund as 
116.24 	recommended by the association actuary and approved under section 356.215, subdivision 
116.25 	18, with interest set at the rate specified in section 356.215, subdivision 8;
116.26 	(8)(7) provide for the payment out of the fund of the cost of administering this chapter, 
116.27 	of all necessary expenses for the administration of the fund and of all claims for withdrawals, 
116.28 	pensions, or benefits allowed;
116.29 	(9)(8) approve or disapprove all recommendations and actions of the executive director 
116.30 	made subject to its approval or disapproval by subdivision 3a; and
117.1 	(10)(9) approve early retirement and optional annuity factors, subject to review by the 
117.2 	actuary retained by the Legislative Commission on Pensions and Retirement; establish the 
117.3 	schedule for implementation of the approved factors; and notify the Legislative Commission 
117.4 	on Pensions and Retirement of the implementation schedule.
117.5 	(b) In passing upon all applications and claims, the board may summon, swear, hear, 
117.6 	and examine witnesses and, in the case of claims for disability benefits, may require the 
117.7 	claimant to submit to a medical examination by a physician of the board's choice, at the 
117.8 	expense of the fund, as a condition precedent to the passing on the claim, and, in the case 
117.9 	of all applications and claims, may conduct investigations necessary to determine their 
117.10 	validity and merit.
117.11 	(c) The board may continue to authorize the sale of life insurance to members under the 
117.12 	insurance program in effect on January 1, 1985, but must not change that program without 
117.13 	the approval of the commissioner of management and budget. The association shall not 
117.14 	receive any financial benefit from the life insurance program beyond the amount necessary 
117.15 	to reimburse the association for costs incurred in administering the program. The association 
117.16 	shall not engage directly or indirectly in any other activity involving the sale or promotion 
117.17 	of goods or services, or both, whether to members or nonmembers.
117.18 	(d) The board shall establish procedures governing reimbursement of expenses to board 
117.19 	members. These procedures must define the types of activities and expenses that qualify 
117.20 	for reimbursement, must provide that all out-of-state travel be authorized by the board, and 
117.21 	must provide for the independent verification of claims for expense reimbursement. The 
117.22 	procedures must comply with the applicable rules and policies of the Department of 
117.23 	Management and Budget and the Department of Administration.
117.24 	(e) The board may purchase fiduciary liability insurance and official bonds for the 
117.25 	officers and members of the board of trustees and employees of the association and may 
117.26 	purchase property insurance or may establish a self-insurance risk reserve including, but 
117.27 	not limited to, data processing insurance and "extra-expense" coverage.

117.28 	EFFECTIVE DATE. This section is effective July 1, 2017.

117.29 	Sec. 6. Minnesota Statutes 2016, section 353.29, subdivision 4, is amended to read:
117.30 		Subd. 4.Application for annuity. Application for a retirement annuity or optional 
117.31 	annuity may be made by a member or by a person authorized to actacting on behalf of the 
117.32 	member, upon proof of authority satisfactory to the executive director. Every application 
117.33 	for retirement must be made in writing on a form or in a format prescribed by the executive 
118.1 	director and must be substantiated by written proof of the member's age and identity. The 
118.2 	notarized signature of a member's spouse on a retirement annuity application acknowledging 
118.3 	the member's annuity selection meets the notice requirement to the spouse under section 
118.4 	356.46, subdivision 3. An application for a retirement annuity is not complete until all 
118.5 	necessary supporting documents are received by the executive director.

118.6 	EFFECTIVE DATE. This section is effective July 1, 2017.

118.7 	Sec. 7. Minnesota Statutes 2016, section 353.29, subdivision 7, is amended to read:
118.8 		Subd. 7.Annuities; accrual Annuity starting date. (a) Except as to elected public 
118.9 	officials specified in paragraph (b), a retirement annuity granted under this chapter begins 
118.10 	withon the first day of the first calendar month after the date of termination of public service
118.11 	or up to six months before the first of the month in which a complete application is received 
118.12 	by the executive director under subdivision 4, whichever is later. The annuity must be paid 
118.13 	in equal monthly installments and does not accrue, unless suspended or reduced under 
118.14 	section 353.37. Annuity payments shall not be paid beyond the end of the month in which 
118.15 	entitlement to the annuity has terminated.
118.16 	(b) An annuity granted to an electiveelected public official accruesmay begin on the 
118.17 	day following the expiration of the public office or expiration of the right to hold that office
118.18 	that qualified the elected official for membership under section 353.01, subdivision 2a or 
118.19 	2d, if a complete application is received by the executive director under subdivision 4 within 
118.20 	six months of the date of termination of public service. The annuity for the month during 
118.21 	which the expiration occurred is prorated accordingly.
118.22 	(c) An annuity, once granted, must not be increased, decreased, or revoked except under 
118.23 	this chapter.
118.24 	(d) An annuity payment may be made retroactive for up to one year prior to that month 
118.25 	in which a complete application is received by the executive director under subdivision 4.
118.26 	(e)(d) If an annuitant dies before negotiating the check for the month in which death 
118.27 	occurs, payment must first be made to the surviving spouse, or if none, then to the designated 
118.28 	beneficiary, or if none, lastly to the estate.

118.29 	EFFECTIVE DATE. This section is effective July 1, 2017.

118.30 	Sec. 8. Minnesota Statutes 2016, section 353.30, subdivision 3c, is amended to read:
118.31 		Subd. 3c.Effective date of bounce-back annuity. In the event of the death of the 
118.32 	designated optional annuity beneficiary before the retired employee or disabilitant, the 
119.1 	restoration of the normal single life annuity under subdivision 3a or 3b will take effect on 
119.2 	the first of the month following the date of death of the designated optional annuity 
119.3 	beneficiary or on the first of the month following one yearsix months before the date on 
119.4 	which a certified copysatisfactory verification of the death record is received in the office 
119.5 	of the public employees retirement association established by the executive director, 
119.6 	whichever date is later.

119.7 	EFFECTIVE DATE. This section is effective July 1, 2017.

119.8 	Sec. 9. Minnesota Statutes 2016, section 353.32, subdivision 1, is amended to read:
119.9 		Subdivision 1.Before retirement. If a member or former member who terminated public 
119.10 	service dies before retirement or before receiving any retirement annuity and no other 
119.11 	payment of any kind is or may become payable to any person, a refund is payable to the 
119.12 	designated beneficiary or, if there be none, to the surviving spouse, or, if none, to the legal 
119.13 	representative of the decedent's estate. The refund must be in an amount equal to accumulated 
119.14 	deductions, less the sum of any disability or survivor benefits that have been paid by the 
119.15 	fund, plus annual compound interest thereon at the rate specified in section 353.34, 
119.16 	subdivision 2, and less the sum of any disability or survivor benefits, if any, that may have 
119.17 	been paid by the fund; provided that a survivor who has a right to benefits under section 
119.18 	353.31 may waive such benefits in writing, except such benefits for a dependent child under 
119.19 	the age of 18 years may only be waived under an order of the district court.

119.20 	EFFECTIVE DATE. This section is effective July 1, 2017.

119.21 	Sec. 10. Minnesota Statutes 2016, section 353.34, subdivision 2, is amended to read:
119.22 		Subd. 2.Refund with interest. (a) Except as provided in subdivision 1, any person who 
119.23 	ceases to be a public employee is entitled to receive a refund in an amount equal to 
119.24 	accumulated deductions with, less the sum of any disability benefits that have been paid by 
119.25 	the fund, plus annual compound interest to the first day of the month in which the refund 
119.26 	is processed.
119.27 	(b) For a person who ceases to be a public employee before July 1, 2011, the refund 
119.28 	interest is at the rate of six percent to June 30, 2011, and at the rate of four percent after 
119.29 	June 30, 2011. For a person who ceases to be a public employee after July 1, 2011, the 
119.30 	refund interest is at the rate of four percent.
120.1 	(c) If a person repays a refund and subsequently applies for another refund, the repayment 
120.2 	amount, including interest, is added to the fiscal year balance in which the repayment was 
120.3 	made.
120.4 	(d) If the refund payable to a member is based on employee deductions that are 
120.5 	determined to be invalid under section 353.27, subdivision 7, the interest payable on the 
120.6 	invalid employee deductions is four percent.

120.7 	EFFECTIVE DATE. This section is effective July 1, 2017.

120.8 	Sec. 11. Minnesota Statutes 2016, section 353.35, subdivision 1, is amended to read:
120.9 		Subdivision 1.Refund rights. (a) Except as provided in paragraph (b), when any former 
120.10 	member accepts a refund, all existing service credits and all rights and benefits to which 
120.11 	the person was entitled prior to the acceptance of the refund must terminate.
120.12 	(b) A refund under section 353.651, subdivision 3, paragraph (c), does not result in a 
120.13 	forfeiture of salary credit for the allowable service credit covered by the refund.
120.14 	(c) TheIf a person forfeits service credits, rights, and benefits under paragraph (a), the 
120.15 	person's service credits, rights, and benefits of a former member must notshall be restored 
120.16 	untilif the person returns to active service and acquiresemployment covered by the 
120.17 	association for at least six months of allowable service credit after taking the last refund
120.18 	and repays the refund or refunds taken and interestall amounts previously received under 
120.19 	section 353.34, subdivisions 1 andsubdivision 2, plus interest at the annual rate of 8.5 
120.20 	percent until June 30, 2015, and eight percent thereafter, compounded annually, from the 
120.21 	date each amount was received to the date the amount is repaid. If the person elects to restore 
120.22 	service credit in a particular fund from which the person has taken more than one refund, 
120.23 	the person must repay all refunds to that fund. All refundsThe repayment must be repaid
120.24 	made within six months of the last date of terminationday of public service employment. 
120.25 	A person may have service credits, rights, and benefits restored under this paragraph once.

120.26 	EFFECTIVE DATE. This section is effective July 1, 2017.

120.27 	Sec. 12. Minnesota Statutes 2016, section 353.37, subdivision 1, is amended to read:
120.28 		Subdivision 1.Salary maximums. (a) The annuity of a person otherwise eligible for 
120.29 	an annuity from the general employees retirement plan of the Public Employees Retirement 
120.30 	Association, the public employees police and fire retirement plan, or the local government 
120.31 	correctional employees retirement plan must be suspended under subdivision 2 or reduced 
120.32 	under subdivision 3, whichever results in the higher annual annuity amount, ifupon the 
121.1 	person reenters public service as a nonelectiveperson's employment as a nonelected employee 
121.2 	of a governmental subdivision in a position not required by law to be a member of a plan 
121.3 	administered by the Minnesota State Retirement System, the Teachers Retirement 
121.4 	Association, or the St. Paul Teachers Retirement Fund Association, or returns to work as 
121.5 	an employee of a labor organization that represents public employees who are association 
121.6 	members under this chapter, and salary for the reemployment service exceeds the annual 
121.7 	maximum earnings allowable for that age for the continued receipt of full benefit amounts 
121.8 	monthly under the federal Old Age, Survivors and Disability Insurance Program as set by 
121.9 	the secretary of health and human services under United States Code, title 42, section 403, 
121.10 	in any calendar year. If the person has not yet reached the minimum age for the receipt of 
121.11 	Social Security benefits, the maximum salary for the person is equal to the annual maximum 
121.12 	earnings allowable for the minimum age for the receipt of Social Security benefits.
121.13 	(b) The provisions of paragraph (a) do not apply to the members of the general employees 
121.14 	plan of the Public Employees Retirement Association who were former members of MERF.

121.15 	EFFECTIVE DATE. This section is effective July 1, 2017.

121.16 	Sec. 13. Minnesota Statutes 2016, section 353.64, subdivision 10, is amended to read:
121.17 		Subd. 10.Pension coverage for Hennepin Healthcare System, Inc.; paramedics and 
121.18 	emergency medical technicians. An employee of Hennepin Healthcare System, Inc. is a 
121.19 	member of the public employees police and fire retirement plan under sections 353.63 to 
121.20 	353.68 if the person is:
121.21 	(1) certified as a paramedic or emergency medical technician by the state under section 
121.22 	144E.28, subdivision 4;
121.23 	(2) employed full time by Hennepin Healthcare System Inc., as:
121.24 	(i) a paramedic or;
121.25 	(ii) an emergency medical technician by Hennepin County; or
121.26 	(iii) a supervisor or manager of paramedics or emergency medical technicians; and
121.27 	(3) not eligible for coverage under the agreement signed between the state and the 
121.28 	secretary of the federal Department of Health and Human Services making the provisions 
121.29 	of the federal Old Age, Survivors, and Disability Insurance Act applicable to paramedics 
121.30 	and emergency medical technicians because the person's position is excluded after that date 
121.31 	from application under United States Code, title 42, sections 418(d)(5)(A) and 418(d)(8)(D), 
121.32 	and section 355.07.
122.1 	Hennepin Healthcare System, Inc. shall deduct the employee contribution from the salary 
122.2 	of each full-time paramedic and emergency medical technician it employs as required by 
122.3 	section 353.65, subdivision 2, shall make the employer contribution for each full-time 
122.4 	paramedic and emergency medical technician it employs as required by section 353.65, 
122.5 	subdivision 3, and shall meet the employer recording and reporting requirements in section 
122.6 	353.65, subdivision 4.

122.7 	EFFECTIVE DATE. This section is effective July 1, 2017.

122.8 	Sec. 14. Minnesota Statutes 2016, section 353F.02, subdivision 5a, is amended to read:
122.9 		Subd. 5a.Privatized former public employer. "Privatized former public employer" 
122.10 	means a medical facility that was formerly included in the definition of governmental 
122.11 	subdivision under section 353.01, subdivision 6, on the day before the effective date of 
122.12 	privatization, that is privatized and whose employees are certified for participation under 
122.13 	this chapter.

122.14 	EFFECTIVE DATE. This section is effective for privatizations with an effective date 
122.15 	of privatization under section 353F.02, subdivision 3, after June 30, 2017.

122.16 	Sec. 15. Minnesota Statutes 2016, section 353F.025, subdivision 2, is amended to read:
122.17 		Subd. 2.Reporting privatizations. (a) If the actuarial calculations under subdivision 
122.18 	1, paragraph (c), indicate privatization can be approved because a net gain to the general 
122.19 	employees retirement plan of the Public Employees Retirement Association is expected, or 
122.20 	if paragraph (b) applies, the executive director shall, following acceptance of the actuarial 
122.21 	calculations by the board of trustees, forward notice and supporting documentation, including 
122.22 	a copy of the actuary's report and findings, to the chair and the executive director of the 
122.23 	Legislative Commission on Pensions and Retirement and the chairs and the ranking minority 
122.24 	members of the committees with jurisdiction over governmental operations in the house of 
122.25 	representatives and senate.
122.26 	(b) If the calculations under subdivision 1, paragraph (c), indicate a net loss, the executive 
122.27 	director shall recommend to the board of trustees that the privatization be approved if the 
122.28 	chief clerical officer of the applicable governmental subdivision submits a resolution from 
122.29 	the governing body specifying that a lump sum payment will be made to the Public 
122.30 	Employees Retirement Association equal to the net loss, plus interest. The interest must be 
122.31 	computed using the applicable ultimate preretirement interest rate assumption under section 
122.32 	356.215, subdivision 8, expressed as a monthly rate, from the date of the actuarial valuation 
122.33 	from which the actuarial accrued liability data was used to determine the net loss in the 
123.1 	actuarial study under subdivision 1, to the date of payment, with annual compounding. 
123.2 	Payment must be made on or after the effective date of privatization.
123.3 	(c) The Public Employees Retirement Association must maintain a list that includes the 
123.4 	names of all privatized former public employers in the association's comprehensive annual 
123.5 	financial report and on the association's Web site. Annually by March 1, the association 
123.6 	must submit to the executive director of the Legislative Commission on Pensions and 
123.7 	Retirement the names of any privatized former public employers approved since the 
123.8 	publication of the previous fiscal year's comprehensive annual financial report.

123.9 	Sec. 16. Minnesota Statutes 2016, section 353F.04, subdivision 2, is amended to read:
123.10 		Subd. 2.Exceptions. The increased augmentation rates specified in subdivision 1 do 
123.11 	not apply to a privatized former public employee:
123.12 	(1) beginning the first of the month in which the privatized former public employee 
123.13 	becomes covered again by a retirement plan enumerated in section 356.30, subdivision 3, 
123.14 	if the employee accrues at least six months of credited service in any single plan enumerated 
123.15 	in section 356.30, subdivision 3, except clause (6);
123.16 	(2) beginning the first of the month in which the privatized former public employee 
123.17 	becomes covered again by the general employees retirement plan of the Public Employees 
123.18 	Retirement Association;
123.19 	(3) beginning the first of the month after a privatized former public employee terminates 
123.20 	service with the successor entity privatized former public employer; or
123.21 	(4) if the person begins receipt of a retirement annuity while employed by the employer 
123.22 	which assumed operations of or purchased the privatized former public employer.

123.23 	EFFECTIVE DATE. This section is effective for privatizations with an effective date 
123.24 	of privatization under section 353F.02, subdivision 3, after June 30, 2017.

123.25 	Sec. 17. Minnesota Statutes 2016, section 353F.05, is amended to read:
123.26 	353F.05 AUTHORIZATION FOR ADDITIONAL ALLOWABLE SERVICE FOR 
123.27 	EARLY RETIREMENT PURPOSES.
123.28 	(a) For the purpose of determining eligibility for early retirement benefits provided under 
123.29 	section 353.30, subdivision 1a, of the edition of Minnesota Statutes published in the year 
123.30 	before the year in which the privatization occurred, and notwithstanding any provision of 
123.31 	chapter 353, to the contrary, the years of allowable service for a privatized former public 
124.1 	employee who transfers employment on the effective date of privatization and does not 
124.2 	apply for a refund of contributions under section 353.34, subdivision 1, of the edition of 
124.3 	Minnesota Statutes published in the year before the year in which the privatization occurred, 
124.4 	or any similar provision, includes service with the successor employer to the privatized 
124.5 	former public employer following the effective date. The successorprivatized former public 
124.6 	employer shall provide any reports that the executive director of the Public Employees 
124.7 	Retirement Association may reasonably request to permit calculation of benefits.
124.8 	(b) To be eligible for early retirement benefits under this section, the individual must 
124.9 	separate from service with the successor to the privatized former public employer. The 
124.10 	privatized former public employee, or an individual authorized to act on behalf of that 
124.11 	employee, may apply for an annuity following application procedures under section 353.29, 
124.12 	subdivision 4.

124.13 	EFFECTIVE DATE. This section is effective for privatizations with an effective date 
124.14 	of privatization under section 353F.02, subdivision 3, after June 30, 2017.

124.15 	Sec. 18. Minnesota Statutes 2016, section 353F.057, is amended to read:
124.16 	353F.057 TERMINATION FROM SERVICE REQUIREMENT.
124.17 	Upon termination of service from the privatized former public employer or any successor 
124.18 	entity after the effective date of privatization, a privatized former public employee must 
124.19 	separate from any employment relationship with the privatized former public employer or 
124.20 	any successor entity for at least 30 days to qualify to receive a retirement annuity under this 
124.21 	chapter.

124.22 	EFFECTIVE DATE. This section is effective for privatizations with an effective date 
124.23 	of privatization under section 353F.02, subdivision 3, after June 30, 2017.

124.24 	Sec. 19. Minnesota Statutes 2016, section 353F.06, is amended to read:
124.25 	353F.06 APPLICATION OF REEMPLOYED ANNUITANT EARNINGS 
124.26 	LIMITATIONS.
124.27 	If a privatized former public employee satisfies the separation from service requirement 
124.28 	in section 353F.057 and thereafter resumes employment with the privatized former public 
124.29 	employer or any successor entity or a governmental subdivision under section 353.01, 
124.30 	subdivision 6, the reemployed annuitant earnings limitations of section 353.37 apply.

124.31 	EFFECTIVE DATE. This section is effective for privatizations with an effective date 
124.32 	of privatization under section 353F.02, subdivision 3, after June 30, 2017.

125.1 	Sec. 20. Minnesota Statutes 2016, section 353F.07, is amended to read:
125.2 	353F.07 EFFECT ON REFUND.
125.3 	Notwithstanding any provision of chapter 353 to the contrary, privatized former public 
125.4 	employees may receive a refund of employee accumulated contributions plus interest as 
125.5 	provided in section 353.34, subdivision 2, at any time after the transfer of employment to 
125.6 	the successor employer of the privatized former public employer. If a privatized former 
125.7 	public employee has received a refund from a pension plan listed in section 356.30, 
125.8 	subdivision 3, the person may not repay that refund unless the person again becomes a 
125.9 	member of one of those listed plans and complies with section 356.30, subdivision 2.

125.10 	EFFECTIVE DATE. This section is effective for privatizations with an effective date 
125.11 	of privatization under section 353F.02, subdivision 3, after June 30, 2017.

125.12 	Sec. 21. [353F.09] APPLICATION TO SALES OF PRIVATIZED FORMER PUBLIC 
125.13 	EMPLOYERS.
125.14 	A medical facility or other employing unit shall cease to be a privatized former public 
125.15 	employer and its employees shall cease to be considered privatized former public employees 
125.16 	under this chapter upon the sale of the operations of the medical facility or employing unit 
125.17 	to another employer or the sale of the medical facility or employing unit to another employer. 
125.18 	The privatized former public employees shall be entitled to benefits accrued under this 
125.19 	chapter to the date of the sale, but shall not accrue additional benefits after the date of the 
125.20 	sale.

125.21 	EFFECTIVE DATE. The section is effective for privatizations with an effective date 
125.22 	of privatization under section 353F.02, subdivision 3, after June 30, 2017, and for sales of 
125.23 	privatized former public employers after June 30, 2017.

125.24 	Sec. 22.  REPEALER.
 125.25 	Minnesota Statutes 2016, section 353.0161, is repealed.

125.26 	EFFECTIVE DATE. This section is effective July 1, 2017.

125.27 	ARTICLE 11
125.28 	TEACHERS RETIREMENT ASSOCIATION
125.29 	ADMINISTRATIVE PROVISIONS

125.30 	Section 1. Minnesota Statutes 2016, section 354.05, subdivision 2, is amended to read:
125.31 		Subd. 2.Teacher. (a) "Teacher" means:
126.1 	(1) a person who renders service as a teacher, supervisor, principal, superintendent, 
126.2 	librarian, nurse, counselor, social worker, therapist, or psychologist in:
126.3 	(i) a public school of the state other than in Independent School District No. 625 or in 
126.4 	Independent School District No. 709, or in any;
126.5 	(ii) a charter school, irrespective of the location of the school, or in any;
126.6 	(iii) a charitable, penal, or correctional institutionsinstitution of a governmental 
126.7 	subdivision,; or
126.8 	(iv) the Perpich Center for Arts Education, except that any employee of the Perpich 
126.9 	Center for Arts Education who was covered by the Minnesota State Retirement System 
126.10 	general state employees retirement plan as of July 1, 2016, shall continue to be covered by 
126.11 	that plan and not by the Teachers Retirement Association;
126.12 	(2) a person who is engaged in educational administration in connection with the state 
126.13 	public school system, whether the position be a public office or anas employment;
126.14 	(3) a person who renders service as a charter school director or chief administrative 
126.15 	officer; provided, however, that if the charter school director or chief administrative officer 
126.16 	is covered by the Public Employees Retirement Association general employees retirement 
126.17 	plan on July 1, 2017, the charter school director or chief administrative officer shall continue 
126.18 	to be covered by that plan and not by the Teachers Retirement Association;
126.19 	(2)(4) an employee of the Teachers Retirement Association;
126.20 	(3)(5) a person who renders teaching service on a part-time basis and who also renders 
126.21 	other services for a single employing unit where the teaching service comprises at least 50 
126.22 	percent of the combined employment salary is a member of the association for all services 
126.23 	with the single employing unit or, if less than 50 percent of the combined employment 
126.24 	salary, the executive director determines all of the combined service is covered by the 
126.25 	association; or
126.26 	(4)(6) a person who is not covered by the plans established under chapter 352D, 354A, 
126.27 	or 354B and who is employed by the Board of Trustees of the Minnesota State Colleges 
126.28 	and Universities system in an unclassified position as:
126.29 	(i) a president, vice-president, or dean;
126.30 	(ii) a manager or a professional in an academic or an academic support program other 
126.31 	than specified in item (i);
126.32 	(iii) an administrative or a service support faculty position; or
127.1 	(iv) a teacher or a research assistant.
127.2 	(b) "Teacher" does not mean:
127.3 	(1) a person who works for a school or institution as an independent contractor as defined 
127.4 	by the Internal Revenue Service;
127.5 	(2) a person who renders part-time teaching service or who is a customized trainer as 
127.6 	defined by the Minnesota State Colleges and Universities system if (i) the service is incidental 
127.7 	to the regular nonteaching occupation of the person; and (ii) the employer stipulates annually 
127.8 	in advance that the part-time teaching service or customized training service will not exceed 
127.9 	300 hours in a fiscal year and retains the stipulation in its records; and (iii) the part-time 
127.10 	teaching service or customized training service actually does not exceed 300 hours in a 
127.11 	fiscal year;
127.12 	(3) a person exempt from licensure under section 122A.30;
127.13 	(4)(2) annuitants of the teachers retirement plan who are employed after retirement by 
127.14 	an employing unit that participates in the teachers retirement plan during the course of that 
127.15 	reemployment;
127.16 	(5)(3) a person who is employed by the University of Minnesota;
127.17 	(6)(4) a member or an officer of any general governing or managing board or body of 
127.18 	an employing unit that participates in the teachers retirement plan; or
127.19 	(7)(5) a person employed by Independent School District No. 625 or Independent School 
127.20 	District No. 709 as a teacher as defined in section 354A.011, subdivision 27.

127.21 	EFFECTIVE DATE. This section is effective July 1, 2017.

127.22 	Sec. 2. Minnesota Statutes 2016, section 354.05, is amended by adding a subdivision to 
127.23 	read:
127.24 		Subd. 17a.Former spouse. "Former spouse" means a person who is no longer a spouse 
127.25 	of a member due to dissolution of the marriage, legal separation, or annulment.

127.26 	EFFECTIVE DATE. This section is effective July 1, 2017.

127.27 	Sec. 3. Minnesota Statutes 2016, section 354.06, subdivision 2, is amended to read:
127.28 		Subd. 2.President; executive director. The board shall annually elect one of its members 
127.29 	as president. It shall elect an executive director. Notwithstanding any law to the contrary, 
127.30 	the board must set the salary of the executive director. The salary of the executive director 
128.1 	must not exceed the limit for a position listed in section 15A.0815, subdivision 2. The salary 
128.2 	of the assistant executive director who shall be in the unclassified service, shall be set in 
128.3 	accordance with section 43A.18, subdivision 3. The executive director shall serve during 
128.4 	the pleasure of the board and be the executive officer of the board, with such duties as the 
128.5 	board shall prescribe. The board shall employ all other clerks and employees necessary to 
128.6 	properly administer the association. The cost and expense of administering the provisions 
128.7 	of this chapter shall be paid by the association. The board shall appoint an executive director 
128.8 	shall be appointed by the board on the basis of fitness education, experience in the retirement 
128.9 	field and leadership, ability to manage and lead system staff, and ability to assist the board 
128.10 	in setting a vision for the system. The executive director shall have had at least five years 
128.11 	of experience on the administrative staff of a major retirement system.

128.12 	EFFECTIVE DATE. This section is effective July 1, 2017.

128.13 	Sec. 4. Minnesota Statutes 2016, section 354.06, subdivision 2a, is amended to read:
128.14 		Subd. 2a.Duties of executive director. The management of the association is vested 
128.15 	in the executive director who shall be the executive and administrative head of the 
128.16 	association. The executive director shall act as advisor to the board on all matters pertaining 
128.17 	to the association and shall also act as the secretary of the board. The executive director 
128.18 	shall:
128.19 	(1) attend all meetings of the board;
128.20 	(2) prepare and recommend to the board appropriate rules to carry out the provisions of 
128.21 	this chapter;
128.22 	(3) establish and maintain an adequate system of records and accounts following 
128.23 	recognized accounting principles and controls;
128.24 	(4) designate, as necessary, a deputy executive director and an assistant executive director 
128.25 	in the unclassified service, as defined in section 43A.08, whose salaries shall be set in 
128.26 	accordance with section 43A.18, subdivision 3, and two assistant executive directors in the 
128.27 	classified service, as defined in section 43A.07, with the approval of the board, and appoint 
128.28 	such employees, both permanent and temporary, as are necessary to carry out the provisions 
128.29 	of this chapter;
128.30 	(5) organize the work of the association as the director deems necessary to fulfill the 
128.31 	functions of the association, and define the duties of its employees and delegate to them 
128.32 	any powers or duties, subject to the director's control and under such conditions as the 
128.33 	director may prescribe;
129.1 	(6) with the approval of the board, contract and set the compensation for the services of 
129.2 	an approved actuary, professional management services, and any other consulting services. 
129.3 	These contracts are not subject to the competitive bidding procedure prescribed by chapter 
129.4 	16C. An approved actuary retained by the executive director shall function as the actuarial 
129.5 	advisor of the board and the executive director and may perform actuarial valuations and 
129.6 	experience studies to supplement those performed by the actuary retained under section 
129.7 	356.214. Any supplemental actuarial valuations or experience studies shall be filed with 
129.8 	the executive director of the Legislative Commission on Pensions and Retirement. Copies 
129.9 	of professional management survey reports must be transmitted to the secretary of the senate, 
129.10 	the chief clerk of the house of representatives, and the Legislative Reference Library as 
129.11 	provided by section 3.195, and to the executive director of the commission at the same time 
129.12 	as reports are furnished to the board. Only management firms experienced in conducting 
129.13 	management surveys of federal, state, or local public retirement systems are qualified to 
129.14 	contract with the executive director;
129.15 	(7) with the approval of the board, provide in-service training for the employees of the 
129.16 	association;
129.17 	(8) make refunds of accumulated contributions to former members and to the designated 
129.18 	beneficiary, surviving spouse, legal representative, or next of kin of deceased members or 
129.19 	deceased former members, under this chapter;
129.20 	(9) determine the amount of the annuities and disability benefits of members covered 
129.21 	by the association and authorize payment of the annuities and benefits beginning as of the 
129.22 	dates on which the annuities and benefits begin to accrue, under this chapter;
129.23 	(10) pay annuities, refunds, survivor benefits, salaries, and necessary operating expenses 
129.24 	of the association;
129.25 	(11) prepare and submit to the board and the legislature an annual financial report 
129.26 	covering the operation of the association, as required by section 356.20;
129.27 	(12) certify funds available for investment to the State Board of Investment;
129.28 	(13) with the advice and approval of the board, request the State Board of Investment 
129.29 	to sell securities on determining that funds are needed for the purposes of the association;
129.30 	(14) prepare and submit biennial and annual budgets to the board and with the approval 
129.31 	of the board submit those budgets to the Department of Management and Budget; and
130.1 	(15) with the approval of the board, perform such other duties as may be required for 
130.2 	the administration of the association and the other provisions of this chapter and for the 
130.3 	transaction of its business. The executive director may:
130.4 	(i) reduce all or part of the accrued interest and fines payable by an employing unit for 
130.5 	reporting requirements under section 354.52 chapter 354, based on an evaluation of any 
130.6 	extenuating circumstances of the employing unit;
130.7 	(ii) assign association employees to conduct field audits of an employing unit to ensure 
130.8 	compliance with the provisions of this chapter; and
130.9 	(iii) recover overpayments, if not repaid to the association, by suspending or reducing 
130.10 	the payment of a retirement annuity, refund, disability benefit, survivor benefit, or optional 
130.11 	annuity under this chapter until the overpayment, plus interest, has been recovered.

130.12 	EFFECTIVE DATE. This section is effective July 1, 2017.

130.13 	Sec. 5. Minnesota Statutes 2016, section 354.095, is amended to read:
130.14 	354.095 MEDICAL LEAVE.
130.15 	(a) Upon granting a medical leave, an employing unit must certify the leave to the 
130.16 	association on a form specified by the executive director. A member of the association who 
130.17 	is on an authorized medical leave of absence is entitled to receive allowable service credit, 
130.18 	not to exceed one year five years, for the period of leave, upon making the prescribed 
130.19 	payment to the fund under section 354.72. A member may not receive more than one year 
130.20 	of allowable service credit during any fiscal year by making payment under this section. A 
130.21 	member may not receive disability benefits under section 354.48 and receive allowable 
130.22 	service credit under this section for the same period of time.
130.23 	(b) The executive director shall reject an application for disability benefits under section 
130.24 	354.48 if the member is applying only because an employer-sponsored provider of private 
130.25 	disability insurance benefits requires such an application and the member would not have 
130.26 	applied for disability benefits in the absence of such requirement. The member shall submit 
130.27 	a copy of the disability insurance policy that requires an application for disability benefits 
130.28 	from the plan if the member wishes to assert that the application is only being submitted 
130.29 	because of the disability insurance policy requirement.
130.30 	(c) Notwithstanding the provisions of any agreement to the contrary, employee and 
130.31 	employer contributions may not be made to receive allowable service credit under this 
130.32 	section if the member does not retain the right to full reinstatement both during and at the 
130.33 	end of the medical leave.

131.1 	EFFECTIVE DATE. Paragraphs (a) and (c) are effective July 1, 2018. Paragraph (b) 
131.2 	is effective retroactively from July 1, 2016.

131.3 	Sec. 6. Minnesota Statutes 2016, section 354.44, subdivision 3, is amended to read:
131.4 		Subd. 3.Application for retirement. A member or a person authorized to act on behalf 
131.5 	of the member may make application for retirement provided the age and service 
131.6 	requirements under subdivision 1 are satisfied on or before the member's retirement annuity 
131.7 	accrual date under subdivision 4. The application may be made no earlier than 120180 days 
131.8 	before the termination of teaching service. The application must be made on a form prescribed 
131.9 	by the executive director and is not complete until all necessary supporting documents are 
131.10 	received by the executive director.

131.11 	EFFECTIVE DATE. This section is effective July 1, 2018.

131.12 	Sec. 7. Minnesota Statutes 2016, section 354.44, subdivision 9, is amended to read:
131.13 		Subd. 9.Determining applicable law. A former teacher who returns to covered service 
131.14 	following a termination and who is not receiving a retirement annuity under this section 
131.15 	must have earned at least 85 daysone-half year of credited service following the return to 
131.16 	covered service to be eligible for improved benefits resulting from any law change enacted 
131.17 	subsequent to that termination.

131.18 	EFFECTIVE DATE. This section is effective July 1, 2017.

131.19 	Sec. 8. Minnesota Statutes 2016, section 354.45, is amended by adding a subdivision to 
131.20 	read:
131.21 		Subd. 3.Payment upon death of former spouse. Upon the death of the former spouse 
131.22 	to whom payments are to be made before the end of the specified payment period, payments 
131.23 	shall be made according to the terms of a beneficiary form completed by the former spouse 
131.24 	or, if no beneficiary form, to the estate of the former spouse or as otherwise ordered by a 
131.25 	court of competent jurisdiction.

131.26 	EFFECTIVE DATE. This section is effective July 1, 2017.

131.27 	Sec. 9. Minnesota Statutes 2016, section 354.46, subdivision 6, is amended to read:
131.28 		Subd. 6.Application. (a) A beneficiary designation and an application for benefits under 
131.29 	this section must be in writing on a form prescribed by the executive director.
132.1 	(b) Sections 354.55, subdivision 11, and 354.60 apply to a deferred annuity payable 
132.2 	under this section.
132.3 	(c) Unless otherwise specified, the annuity must be computed under section 354.44, 
132.4 	subdivision 2 or 6, whichever is applicable.
132.5 	(d) Each designated beneficiary eligible for a lifetime benefit under this subdivision may 
132.6 	apply for an annuity any time after the member's death. The benefit may not begin to accrue 
132.7 	more than six months before the date the application is filed with the executive director and 
132.8 	may not accrue before the member's death.

132.9 	EFFECTIVE DATE. This section is effective July 1, 2017.

132.10 	Sec. 10. Minnesota Statutes 2016, section 354.48, subdivision 1, is amended to read:
132.11 		Subdivision 1.Age, service and salary requirements. A member who is totally and 
132.12 	permanently disabled, who has not reached the normal retirement age as defined in section 
132.13 	354.05, subdivision 38, and who has at least three years of credited allowable service at the 
132.14 	time that the total and permanent disability begins is entitled to a disability benefit based 
132.15 	on this allowable service in an amount provided in subdivision 3. If the disabled member's 
132.16 	teaching service has terminated at any time, at least two of the required three years of 
132.17 	allowable service must have been rendered after last becoming a member. Any member 
132.18 	whose average salary is less than $75 per month is not entitled to disability benefits.

132.19 	EFFECTIVE DATE. This section is effective July 1, 2017.

132.20 	Sec. 11. Minnesota Statutes 2016, section 354.512, is amended to read:
132.21 	354.512 RECOVERY OF DEFICIENCIES.
132.22 	In addition to any other remedies permitted under law, if an employing unit or other 
132.23 	entity required by law to make any form of payment to the Teachers Retirement Association 
132.24 	fails to make full payment within 60 days of notification, the executive director is authorized 
132.25 	to certify the amount of deficiency to the commissioner of management and budget, who 
132.26 	shall deduct the amount from any state aid or appropriation applicable to the employing 
132.27 	unit or entity, and transmit the withheld aid or appropriation to the executive director for 
132.28 	deposit in the fund.

132.29 	EFFECTIVE DATE. This section is effective July 1, 2017.

133.1 	Sec. 12. Minnesota Statutes 2016, section 354.52, subdivision 4, is amended to read:
133.2 		Subd. 4.Reporting and remittance requirements. An employer shall remit all amounts 
133.3 	due to the association and furnish a statement indicating the amount due and transmitted 
133.4 	with any other information required by the executive director. If an amount due is not 
133.5 	received by the association within 14 calendar days of the payroll warrant, the amount 
133.6 	accrues interest at an annual rate of 8.5 percent compounded annually from the due date 
133.7 	until the amount is received by the association. All amounts due and other employer 
133.8 	obligations not remitted within 60 days of notification by the association mustmay be 
133.9 	certified to the commissioner of management and budget who shall deduct the amount from 
133.10 	any state aid or appropriation amount applicable to the employing unit.

133.11 	EFFECTIVE DATE. This section is effective July 1, 2017.

133.12 	Sec. 13. Minnesota Statutes 2016, section 354.52, subdivision 4d, is amended to read:
133.13 		Subd. 4d.Annual base salary reporting. An employing unit must provide the following
133.14 	annual base salary data, as defined in section 354.05, subdivision 41, to the association on 
133.15 	or before June 30 of each fiscal year: (1) annual base salary, as defined in section 354.05, 
133.16 	subdivision 41; and.
133.17 	(2) beginning and ending dates for the regular school work year.

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

133.19 	Sec. 14. Minnesota Statutes 2016, section 354.55, subdivision 11, is amended to read:
133.20 		Subd. 11.Deferred annuity; augmentation. (a) Any person covered under section 
133.21 	354.44, subdivision 6, who ceases to render teaching service, may leave the person's 
133.22 	accumulated deductions in the fund for the purpose of receiving a deferred annuity at 
133.23 	retirement.
133.24 	(b) The amount of the deferred retirement annuity is determined by section 354.44, 
133.25 	subdivision 6, and augmented as provided in this subdivision. The required reserves for the 
133.26 	annuity which had accrued when the member ceased to render teaching service must be 
133.27 	augmented, as further specified in this subdivision, by the applicable interest rate compounded 
133.28 	annually from the first day of the month following the month during which the member 
133.29 	ceased to render teaching service to the effective date of retirement.
133.30 	(c) No augmentation is not creditable if the deferral period is less than three months or 
133.31 	if deferral commenced before July 1, 1971.
134.1 	(d) For persons who became covered employees before July 1, 2006, with a deferral 
134.2 	period commencing after June 30, 1971, the annuity must be augmented as follows:
134.3 	(1) five percent interest compounded annually until January 1, 1981;
134.4 	(2) three percent interest compounded annually from January 1, 1981, until January 1 
134.5 	of the year following the year in which the deferred annuitant attains age 55;
134.6 	(3) five percent interest compounded annually from the date established in clause (2) to 
134.7 	the effective date of retirement or until June 30, 2012, whichever is earlier; and
134.8 	(4) two percent interest compounded annually after June 30, 2012.
134.9 	(e) For persons who become covered employees after June 30, 2006, the interest rate 
134.10 	used to augment the deferred annuity is 2.5 percent interest compounded annually until June 
134.11 	30, 2012, or until the effective date of retirement, whichever is earlier, and two percent 
134.12 	interest compounded annually after June 30, 2012.
134.13 	(f) If a person has more than one period of uninterrupted service, a separate average 
134.14 	salary determined under section 354.44, subdivision 6, must be used for each period and 
134.15 	the required reserves related to each period must be augmented as specified in this 
134.16 	subdivision. The sum of the augmented required reserves is the present value of the annuity. 
134.17 	For the purposes of this subdivision, "period of uninterrupted service" means a period of 
134.18 	covered teaching service during which the member has not been separated from active 
134.19 	service for more than one fiscal year.
134.20 	(g)(f) If a person repays a refund, the service restored by the repayment must be 
134.21 	considered as continuous with the next period of service for which the person has allowable 
134.22 	service credit in the Teachers Retirement Association.
134.23 	(h)(g) If a person does not render teaching service in any one fiscal year or more 
134.24 	consecutive fiscal years and then resumes teaching service, the formula percentages used 
134.25 	from the date of the resumption of teaching service must be those applicable to new members.
134.26 	(i)(h) The mortality table and interest rate actuarial assumption used to compute the 
134.27 	annuity must be the applicable mortality table established by the board under section 354.07, 
134.28 	subdivision 1, and the interest rate actuarial assumption under section 356.215 in effect 
134.29 	when the member retires.
134.30 	(j)(i) In no case may the annuity payable under this subdivision be less than the amount 
134.31 	of annuity payable under section 354.44, subdivision 6.
135.1 	(k)(j) The requirements and provisions for retirement before normal retirement age 
135.2 	contained in section 354.44, subdivision 6, also apply to an employee fulfilling the 
135.3 	requirements with a combination of service as provided in section 354.60.
135.4 	(l)(k) The augmentation provided by this subdivision applies to the benefit provided in 
135.5 	section 354.46, subdivision 2.
135.6 	(m)(l) The augmentation provided by this subdivision does not apply to any period in 
135.7 	which a person is on an approved leave of absence from an employer unit covered by the 
135.8 	provisions of this chapter.
135.9 	(n)(m) The retirement annuity or disability benefit of, or the survivor benefit payable 
135.10 	on behalf of, a former teacher who terminated service before July 1, 1997, which is not first 
135.11 	payable until after June 30, 1997, must be increased on an actuarial equivalent basis to 
135.12 	reflect the change in the postretirement interest rate actuarial assumption under section 
135.13 	356.215, subdivision 8, from five percent to six percent under a calculation procedure and 
135.14 	tables adopted by the board as recommended by an approved actuary and approved by the 
135.15 	actuary retained under section 356.214.

135.16 	EFFECTIVE DATE. This section is effective July 1, 2018.

135.17 	Sec. 15. Minnesota Statutes 2016, section 354.66, subdivision 2, is amended to read:
135.18 		Subd. 2.Qualified part-time teacher program participation requirements. (a) A 
135.19 	teacher in a Minnesota public elementary school, a Minnesota secondary school, or the 
135.20 	Minnesota State Colleges and Universities system who has three years or more of allowable 
135.21 	service in the association or three years or more of full-time teaching service in Minnesota 
135.22 	public elementary schools, Minnesota secondary schools, or the Minnesota State Colleges 
135.23 	and Universities system, by agreement with the board of the employing district or with the 
135.24 	authorized representative of the board, may be assigned to teaching service in a part-time 
135.25 	teaching position under subdivision 3. The agreement must be executed before October 1 
135.26 	of the school year for which the teacher requests to make retirement contributions under 
135.27 	subdivision 4 has been assigned to teaching service in a part-time teaching position under 
135.28 	this section. A copy of the executed agreement must be filed with the executive director of 
135.29 	the association. If the copy of the executed agreement is filed with the association after 
135.30 	October 1 of the school year for which the teacher requests to make retirement contributions 
135.31 	under subdivision 4 has been assigned to teaching service in a part-time teaching position, 
135.32 	the employing unit shall pay the fine specified in section 354.52, subdivision 6, for each 
135.33 	calendar day that elapsed since the October 1 due date, unless the association waives the 
136.1 	fine. The association may not accept an executed agreement that is received by the association 
136.2 	more than 15 months late. The association may not waive the fine required by this section.
136.3 	(b) Notwithstanding paragraph (a), if the teacher is also a legislator:
136.4 	(1) the agreement in paragraph (a) must be executed before March 1 of the school year 
136.5 	for which the teacher requests to make retirement contributions under subdivision 4; and
136.6 	(2) the fines specified in paragraph (a) apply if the employing unit does not file the 
136.7 	executed agreement with the executive director of the association by March 1.

136.8 	EFFECTIVE DATE. This section is effective July 1, 2017.

136.9 	Sec. 16. Minnesota Statutes 2016, section 354.72, subdivision 1, is amended to read:
136.10 		Subdivision 1.Application. This section applies to any strike period under section 
136.11 	354.05, subdivision 13, clause (6), and to any period of authorized leave of absence without 
136.12 	pay under sections 354.093, 354.094, 354.095, and 354.096 for which the teacher obtains 
136.13 	credit for allowable service by making payment as specified in this section to the Teachers 
136.14 	Retirement Association fund. Each year of an extended leave of absence under section 
136.15 	354.094 is considered to be a separate leave for purposes of this section.

136.16 	Sec. 17. Minnesota Statutes 2016, section 423A.02, subdivision 3, is amended to read:
136.17 		Subd. 3.Reallocation of amortization state aid. (a) Seventy percent of the difference 
136.18 	between $5,720,000 and the current year amortization aid distributed under subdivision 1 
136.19 	that is not distributed for any reason to a municipality must be distributed by the 
136.20 	commissioner of revenue according to this paragraph. The commissioner shall distribute 
136.21 	60 percent of the amounts derived under this paragraph to the Teachers Retirement 
136.22 	Association, and 40 percent to the St. Paul Teachers Retirement Fund Association to fund 
136.23 	the unfunded actuarial accrued liabilities of the respective funds. These payments must be 
136.24 	made on July 15 each fiscal year. If the St. Paul Teachers Retirement Fund Association or 
136.25 	the Duluth Teachers Retirement Fund Association becomes fully funded, the association's 
136.26 	eligibility for its portion of this aid ceases. Amounts remaining in the undistributed balance 
136.27 	account at the end of the biennium if aid eligibility ceases cancel to the general fund.
136.28 	(b) In order to receive amortization aid under paragraph (a), before June 30 annually 
136.29 	Independent School District No. 625, St. Paul, must make an additional contribution of 
136.30 	$800,000 each year to the St. Paul Teachers Retirement Fund Association.
136.31 	(c) Thirty percent of the difference between $5,720,000 and the current year amortization 
136.32 	aid under subdivision 1 that is not distributed for any reason to a municipality must be 
137.1 	distributed under section 69.021, subdivision 7, paragraph (d), as additional funding to 
137.2 	support a minimum fire state aid amount for volunteer firefighter relief associations.

137.3 	EFFECTIVE DATE. This section is effective July 1, 2017.

137.4 	ARTICLE 12
137.5 	ST. PAUL TEACHERS RETIREMENT FUND ASSOCIATION
137.6 	ADMINISTRATIVE PROVISIONS

137.7 	Section 1. Minnesota Statutes 2016, section 354A.093, subdivision 4, is amended to read:
137.8 		Subd. 4.Eligible payment period. (a) To receive service credit under this section, the 
137.9 	contributions specified in this section must be transmitted to the applicable first class city
137.10 	St. Paul Teachers Retirement Fund Association during the period which begins with the 
137.11 	date the individual returns to teaching service and which has a duration of three times the 
137.12 	length of the uniformed service period, but not to exceed five years.
137.13 	(b) Notwithstanding paragraph (a), if the payment period determined under paragraph 
137.14 	(a) is less than one year, the contributions required under this section to receive service 
137.15 	credit may be made within one year from the discharge date.

137.16 	EFFECTIVE DATE. This section is effective July 1, 2017.

137.17 	Sec. 2. Minnesota Statutes 2016, section 354A.38, is amended to read:
137.18 	354A.38 EFFECT OF REFUND; REPAYMENT OF REFUND.
137.19 		Subdivision 1.Effect of refund; termination of service credit. If a coordinated member 
137.20 	or former coordinated member applies for and acceptsis issued a refund pursuant to section 
137.21 	354A.37, all allowable service which was credited to the member or former member shall 
137.22 	be terminated.
137.23 		Subd. 2.Repayment of refund. A coordinated member with at least two years of 
137.24 	allowable service credited subsequent to the member's last application for and acceptance
137.25 	payment of a refund pursuant to section 354A.37 shall be entitled to repay the refund. The 
137.26 	amount of the refund repayment shall be calculated pursuant to subdivision 3. If the member 
137.27 	has previously applied for and acceptedtaken more than one refund, and the previous refund 
137.28 	orall refunds have not beenmust be repaid, then the member shall be entitled only to repay 
137.29 	all outstanding refunds and shall not be entitled to repay only the most recent refund pro 
137.30 	rata.
137.31 		Subd. 3.Computation of refund repayment amount. If the coordinated member elects 
137.32 	to repay a refund under subdivision 2, the repayment to the fund must be in an amount equal 
138.1 	to refunds the member has acceptedbeen issued plus interest at the rate of 8.5 percent until 
138.2 	June 30, 2015, and eight percent thereafterapplicable annual rate or rates specified in section 
138.3 	356.59, subdivision 5, compounded annually, from the date that the refund was accepted
138.4 	issued to the date that the refund is repaid.

138.5 	EFFECTIVE DATE. This section is effective July 1, 2017.

138.6 	ARTICLE 13
138.7 	RETIREMENT SYSTEMS, GENERALLY
138.8 	ADMINISTRATIVE PROVISIONS

138.9 	Section 1. Minnesota Statutes 2016, section 356.32, subdivision 2, is amended to read:
138.10 		Subd. 2.Covered retirement plans. The provisions of this section apply to the following 
138.11 	retirement plans:
138.12 	(1) the general state employees retirement plan of the Minnesota State Retirement System, 
138.13 	established under chapter 352;
138.14 	(2) the correctional state employees retirement plan of the Minnesota State Retirement 
138.15 	System, established under chapter 352;
138.16 	(3) the State Patrol retirement plan, established under chapter 352B;
138.17 	(4) the general employees retirement plan of the Public Employees Retirement 
138.18 	Association, established under chapter 353;
138.19 	(5) the public employees police and fire plan of the Public Employees Retirement 
138.20 	Association, established under chapter 353;
138.21 	(6) the local government correctional service retirement plan of the Public Employees 
138.22 	Retirement Association, established under chapter 353E;
138.23 	(7) the Teachers Retirement Association, established under chapter 354; and
138.24 	(7)(8) the St. Paul Teachers Retirement Fund Association, established under chapter 
138.25 	354A.

138.26 	EFFECTIVE DATE. This section is effective July 1, 2017.

138.27 	Sec. 2. Minnesota Statutes 2016, section 356.47, subdivision 3, is amended to read:
138.28 		Subd. 3.Payment. (a) Beginning one year after the reemployment withholding period 
138.29 	ends relating to the reemployment that gave rise to the limitation, and the filing of a written 
138.30 	application, the retired member is entitled to the payment, in a lump sum, of the value of 
139.1 	the person's amount under subdivision 2, plus annual compound interest. For the general 
139.2 	state employees retirement plan, the correctional state employees retirement plan, the general 
139.3 	employees retirement plan of the Public Employees Retirement Association, the public 
139.4 	employees police and fire retirement plan, the local government correctional employees 
139.5 	retirement plan, and the teachers retirement plan, the annual interest rate is six percent from 
139.6 	the date on which the amount was deducted from the retirement annuity to the date of 
139.7 	payment or until January 1, 2011, whichever is earlier, and no interest after January 1, 2011. 
139.8 	For the St. Paul Teachers Retirement Fund Association, the annual interest is the rate of six 
139.9 	percent from the date that the amount was deducted from the retirement annuity to the date 
139.10 	of payment or June 30, 2011, whichever is earlier, and with no interest accrual after June 
139.11 	30, 2011.
139.12 	(b) The written application must be on a form prescribed by the chief administrative 
139.13 	officer of the applicable retirement plan.
139.14 	(c) If the retired member dies before the payment provided for in paragraph (a) is made, 
139.15 	the amount is payable, upon written application, to the deceased person's surviving spouse, 
139.16 	or if none, to the deceased person's designated beneficiary, or if none, to the deceased 
139.17 	person's estate.
139.18 	(d) If the amount under subdivision 2 is an eligible rollover distribution as defined in 
139.19 	section 356.635, subdivisions 4 and 5, the applicable retirement plan shall provide notice 
139.20 	and an election:
139.21 	(1) to the member regarding the member's right to elect a direct rollover under section 
139.22 	356.635, subdivisions 3 to 7, in lieu of thea direct payment of the person's amount under 
139.23 	subdivision 2, on or after the payment date under paragraph (a), if the federal Internal 
139.24 	Revenue Code so permits, the retired member may elect to have all or any portion of the 
139.25 	payment amount under this section paid in the form of a direct rollover to an eligible 
139.26 	retirement plan as defined in section 402(c) of the federal Internal Revenue Code that is 
139.27 	specified by the retired member. If the retired member dies with a balance remaining payable 
139.28 	under this section, the surviving spouse of the retired member, or if none, the deceased 
139.29 	person's designated beneficiary, or if none, the administrator of the deceased person's estate 
139.30 	may elect a direct rollover under this paragraph.; or
139.31 	(2) if paragraph (c) applies and the amount is to be paid to a person who is a distributee 
139.32 	as defined in section 356.635, subdivision 7, to the distributee regarding the distributee's 
139.33 	right to elect a direct rollover under section 356.635, subdivisions 3 to 7, in lieu of a direct 
139.34 	payment.

140.1 	EFFECTIVE DATE. This section is effective July 1, 2017.

140.2 	Sec. 3. Minnesota Statutes 2016, section 356.635, is amended by adding a subdivision to 
140.3 	read:
140.4 		Subd. 9a.Definitions. (a) The following definitions apply for purposes of this subdivision 
140.5 	and subdivisions 10 to 12.
140.6 	(b) "Annual addition" means the sum for the limitation year of all pretax and after-tax 
140.7 	contributions made by the member or the member's employer and credited to an account in 
140.8 	the name of the member in any defined contribution plan maintained by the employer.
140.9 	(c) "Compensation" means the compensation actually paid or made available to a member 
140.10 	for any limitation year, including all items of remuneration described in Code of Federal 
140.11 	Regulations, title 26, section 1.415(c)-2(b), and excluding all items of remuneration described 
140.12 	in Code of Federal Regulations, title 26, section 1.415(c)-2(c). Compensation for pension 
140.13 	plan purposes for any limitation year shall not exceed the applicable federal compensation 
140.14 	limit described in section 356.611, subdivision 2.
140.15 	(d) "Limitation year" means the calendar year or fiscal year, whichever is applicable to 
140.16 	the particular pension plan.
140.17 	(e) "Maximum permissible benefit" means an annual benefit of $160,000, automatically 
140.18 	adjusted under section 415(d) of the Internal Revenue Code for each limitation year ending 
140.19 	after December 31, 2001, payable in the form of a single life annuity. The new limitation 
140.20 	shall apply to limitation years ending with or within the calendar year of the date of the 
140.21 	adjustment, but a member's benefits shall not reflect the adjusted limit prior to January 1 of 
140.22 	that calendar year. The maximum permissible benefit amount shall be further adjusted as 
140.23 	follows:
140.24 	(1) if the member has less than ten years of participation, the maximum permissible 
140.25 	benefit shall be multiplied by a fraction, the numerator of which is the number of years (or 
140.26 	part thereof, but not less than one year) of participation in the plan, and the denominator of 
140.27 	which is ten;
140.28 	(2) if the annual benefit begins before the member has attained age 62, the determination 
140.29 	as to whether the maximum permissible benefit limit has been satisfied shall be made, in 
140.30 	accordance with regulations prescribed by the United States secretary of the treasury, by 
140.31 	reducing the limit so that the limit, as so reduced, equals an annual benefit, beginning when 
140.32 	the annual benefit actually begins, which is equivalent to a $160,000, as adjusted, annual 
140.33 	benefit beginning at age 62; and
141.1 	(3) if the annual benefit begins after the member has attained age 65, the determination 
141.2 	as to whether the maximum permissible benefit limit has been satisfied shall be made, in 
141.3 	accordance with regulations prescribed by the United States secretary of the treasury, by 
141.4 	increasing the limit so that the limit, as so increased, equals an annual benefit, beginning 
141.5 	when the annual benefit actually begins, which is equivalent to a $160,000, as adjusted, 
141.6 	annual benefit beginning at age 65.

141.7 	EFFECTIVE DATE. This section is effective July 1, 2017.

141.8 	Sec. 4. Minnesota Statutes 2016, section 356.635, subdivision 10, is amended to read:
141.9 		Subd. 10.Annual benefit limitations; defined benefit plans. (a) The annual benefit 
141.10 	payable to a member shall not exceed the maximum permissible benefit. If the benefit the 
141.11 	member would otherwise receive for a limitation year would result in the payment of an 
141.12 	annual benefit in excess of the maximum permissible benefit, the benefit shall be reduced 
141.13 	to the extent necessary so the benefit does not exceed the maximum permissible benefit.
141.14 	(b) For purposes of applying the limits of section 415(b) of the Internal Revenue Code, 
141.15 	a retirementlimitation in paragraph (a), an annual benefit that is payable in any form other 
141.16 	than a single life annuity and that is subject to section 417(e)(3) of the Internal Revenue 
141.17 	Code mustshall be adjusted to an actuarially equivalent single life annuity that equals, if 
141.18 	the annuity starting date is in a plan year beginning after 2005, the annual amount of the 
141.19 	single life annuity commencing at the same annuity starting date that has the same actuarial 
141.20 	present value as the participant'smember's form of benefit, using whichever of the following 
141.21 	produces the greatest annual amount:
141.22 	(1) the interest rate and the mortality table or other tabular factor specified in the plan 
141.23 	for adjusting benefits in the same form;
141.24 	(2) a 5.5 percent interest rate assumption and the applicable mortality table; or
141.25 	(3) the applicable interest rate under section 417(e)(3) of the Internal Revenue Code and 
141.26 	the applicable mortality table, divided by 1.05.
141.27 	(c) If a member participated in more than one pension plan in which the employer 
141.28 	participates, the benefits under each plan must be reduced proportionately to satisfy the 
141.29 	limitation in paragraph (a).

141.30 	EFFECTIVE DATE. This section is effective July 1, 2017.

142.1 	Sec. 5. Minnesota Statutes 2016, section 356.635, is amended by adding a subdivision to 
142.2 	read:
142.3 		Subd. 11.Annual addition limitation; defined contribution plans. The annual additions 
142.4 	by or on behalf of a member to a defined contribution plan for any limitation year shall not 
142.5 	exceed the lesser of (1) 100 percent of the member's compensation for the limitation year 
142.6 	or (2) the dollar limit in effect for the limitation year under section 415(c)(1)(A) of the 
142.7 	Internal Revenue Code, as adjusted by the United States secretary of the treasury under 
142.8 	section 415(d)(1)(C) of the Internal Revenue Code.

142.9 	EFFECTIVE DATE. This section is effective July 1, 2017.

142.10 	Sec. 6. Minnesota Statutes 2016, section 356.635, is amended by adding a subdivision to 
142.11 	read:
142.12 		Subd. 12.Incorporation by reference. Any requirements of section 415(b) and (c) of 
142.13 	the Internal Revenue Code and related regulations and agency guidance not addressed by 
142.14 	subdivisions 10 and 11 shall be considered incorporated by reference, including provisions 
142.15 	applicable to qualified police and firefighters and to survivor and disability benefits. 
142.16 	Subdivisions 10 to 12 shall be interpreted in a manner that is consistent with the requirements 
142.17 	of section 415(b) and (c) of the Internal Revenue Code and the related regulations.

142.18 	EFFECTIVE DATE. This section is effective July 1, 2017.

142.19 	Sec. 7. Minnesota Statutes 2016, section 356.635, is amended by adding a subdivision to 
142.20 	read:
142.21 		Subd. 13.Correction of errors. The executive director of each plan may correct an 
142.22 	operational, demographic, employer eligibility, or plan document error as the executive 
142.23 	director deems necessary or appropriate to preserve and protect the plan's tax qualification 
142.24 	under section 401(a) of the Internal Revenue Code, including as provided in the Internal 
142.25 	Revenue Service's Employee Plans Compliance Resolution System (EPCRS) or any successor 
142.26 	thereto. To the extent deemed necessary by the executive director to implement correction, 
142.27 	the executive director may:
142.28 	(1) make distributions;
142.29 	(2) transfer assets; or
142.30 	(3) recover an overpayment by reducing future benefit payments or designating 
142.31 	appropriate revenue or source of funding that will restore to the plan the amount of the 
142.32 	overpayment.

143.1 	EFFECTIVE DATE. This section is effective July 1, 2017.

143.2 	Sec. 8. Minnesota Statutes 2016, section 356.96, subdivision 1, is amended to read:
143.3 		Subdivision 1.Definitions. (a) Unless the language or context clearly indicates that a 
143.4 	different meaning is intended, for the purpose of this section, the terms in paragraphs (b) 
143.5 	to (e)this subdivision have the meanings given them.
143.6 	(b) "Chief administrative officer""Executive director" means the executive director of 
143.7 	a covered pension plan or the executive director's designee or representative.
143.8 	(c) "Covered pension plan" means a plan enumerated in section 356.20, subdivision 2, 
143.9 	clauses (1) to (4), (8), and (11) to (14), but does not mean the deferred compensation plan 
143.10 	administered under sections 352.965 and 352.97 or to the postretirement health care savings 
143.11 	plan administered under section 352.98.
143.12 	(d) "Governing board" means the Board of Trustees of the Public Employees Retirement 
143.13 	Association, the Board of Trustees of the Teachers Retirement Association, or the Board 
143.14 	of Directors of the Minnesota State Retirement System.
143.15 	(e) "Person" includesmeans an active, retired, deferred, or nonvested inactive participant 
143.16 	in a covered pension plan or a beneficiary of a participant, or an individual who has applied 
143.17 	to be a participant or who is or may be a survivor of a participant, or the representative of 
143.18 	a state agency or other governmental unit that employs active participants in a covered 
143.19 	pension plan.
143.20 	(f) "Petitioner" means a person who has filed a petition for review of an executive 
143.21 	director's determination under this section.

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

143.23 	Sec. 9. Minnesota Statutes 2016, section 356.96, subdivision 2, is amended to read:
143.24 		Subd. 2.Right to review appeal to executive director; determination. A determination 
143.25 	made by the chief administrative officerperson may appeal a decision by the staff of a 
143.26 	covered pension plan regarding athe person's eligibility, benefits, or other rights under the 
143.27 	plan with which the person does not agree to the executive director of the plan. The appeal 
143.28 	must be in writing and be delivered to the executive director. The executive director may 
143.29 	overturn, modify, or affirm the staff's decision. The executive director's determination is 
143.30 	subject to review under this section.

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

144.1 	Sec. 10. Minnesota Statutes 2016, section 356.96, subdivision 3, is amended to read:
144.2 		Subd. 3.Notice of determination. If the applicable chief administrative officer denies 
144.3 	an application or a written request, modifies a benefit, or terminates a benefit of a person 
144.4 	claiming a right or potential rights under a covered pension plan, the chief administrative 
144.5 	officer shall notify that person through a written notice containing: The executive director 
144.6 	shall issue a written notice of determination to the person who files an appeal under 
144.7 	subdivision 2. The notice of determination must be delivered by certified mail to the address 
144.8 	to which the most recent benefit payment was sent or, if that address is that of a financial 
144.9 	institution, to the last known address of the person. The notice of determination shall include 
144.10 	the following:
144.11 	(1) a statement of the reasons for the determination;
144.12 	(2) a noticestatement that the person may petition the governing board of the covered 
144.13 	pension plan for a review of the determination and that a person's petition for review must 
144.14 	be filed in the administrative office of the covered pension plan withinno later than 60 days 
144.15 	of the receiptafter the date of the written notice of the determination;
144.16 	(3) a statement indicating that a failure to petition for review within 60 days precludes 
144.17 	the person from contesting in any otherfurther administrative or judicial review or court 
144.18 	procedure the issues determined by the chief administrative officer of the executive director's 
144.19 	determination;
144.20 	(4) a statement indicating that all relevant materials, documents, affidavits, and other 
144.21 	records that the person wishes to be reviewed in support of the petition and a list of any 
144.22 	witnesses who will testify before the governing board, along with a summary of their 
144.23 	testimony, must be filed with and received in the administrative office of the covered pension 
144.24 	plan at least 15 days before the date of the hearing under subdivision 10 or as directed by 
144.25 	the administrative law judge who conducts a fact-finding conference under subdivision 7, 
144.26 	paragraph (b), or a contested case hearing under subdivision 12, paragraph (b); and
144.27 	(5) a summary of this section, including all filing requirements and deadlines.; and
144.28 	(6) the statement required under subdivision 4, paragraph (a), if applicable.

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

144.30 	Sec. 11. Minnesota Statutes 2016, section 356.96, subdivision 4, is amended to read:
144.31 		Subd. 4.Termination of benefits. (a) If a covered pension plan decides tothe executive 
144.32 	director's determination will terminate a benefit that is being paid to a person, before 
145.1 	terminating the benefit, the chief administrative officer must, in addition to the other 
145.2 	procedures prescribed in this section, provide the individual with written notice of the 
145.3 	pending benefit termination by certified mail. The notice must explain the reason for the 
145.4 	pending benefit termination. The person must be given anthe notice of determination must 
145.5 	also state that the person has the opportunity to explain, in writing, in person, by telephone, 
145.6 	or by e-mail, the reasons that the benefit should not be terminated.
145.7 	(b) If the chief administrative officer is unable to contact the person andnotice of 
145.8 	determination is returned as undeliverable, and the person cannot be reached by any other 
145.9 	reasonable means of communication, and the executive director determines that a failure 
145.10 	to terminate the benefit will result in unauthorized payment by a covered pension plan, the 
145.11 	chief administrative officerexecutive director may terminate the benefit immediately upon 
145.12 	mailing a written notice containing the information required by subdivision 3 to the address 
145.13 	to which the most recent benefit payment was sent and, if that address is that of a financial 
145.14 	institution, to the last known address of the person.

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

145.16 	Sec. 12. Minnesota Statutes 2016, section 356.96, subdivision 5, is amended to read:
145.17 		Subd. 5.Petition for review. (a) Upon receipt of the notice of determination required 
145.18 	in subdivision 3, a person who claims a right under subdivision 2 may petition the governing 
145.19 	board of the covered pension plan for a review of that decision by the governing board of 
145.20 	the covered pension plan the executive director's determination.
145.21 	(b) A petition under this section must be sent to the chief administrative officer by mail 
145.22 	and must be postmarkedThe petitioner must file the petition for review with the 
145.23 	administrative office of the covered pension plan no later than 60 days after the person 
145.24 	receiveddate of the notice of determination required by subdivision 3. Filing of the petition 
145.25 	is effective upon mailing or personal delivery. The petition must include the person's
145.26 	petitioner's statement of the reason or reasons that the person believes the decision of the 
145.27 	chief administrative officerdetermination of the executive director should be reversed or 
145.28 	modified. The petition may include all documentation and written materials that the petitioner 
145.29 	deems to be relevant. In developing a record for review by the board when a decision is 
145.30 	appealed, the chief administrative officer may direct that the applicant participate in a 
145.31 	fact-finding session conducted by an administrative law judge assigned by the Office of 
145.32 	Administrative Hearings and, as applicable, participate in a vocational assessment conducted 
145.33 	by a qualified rehabilitation counselor on contract with the applicable retirement system.

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

146.1 	Sec. 13. Minnesota Statutes 2016, section 356.96, subdivision 6, is amended to read:
146.2 		Subd. 6.Failure to petition. If a timely petition for review under subdivision 5 is not 
146.3 	filed with the chief administrative officer,office of the covered pension plan'splan, the 
146.4 	executive director's determination is final and is not subject to further administrative or 
146.5 	judicial review.

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

146.7 	Sec. 14. Minnesota Statutes 2016, section 356.96, subdivision 7, is amended to read:
146.8 		Subd. 7.Notice of hearing; fact-finding; filing and timing requirements. (a) After 
146.9 	receiving a petition, the chief administrative officerexecutive director must schedule a 
146.10 	timelyhearing to review of the petition before the governing board of the covered pension 
146.11 	plan or the executive director may defer the scheduling of a hearing until after a fact-finding 
146.12 	conference under paragraph (b). The review must be scheduled to take into consideration 
146.13 	any necessary accommodations to allow the petitioner to participate in the governing board's 
146.14 	review.
146.15 	(b) The executive director may direct the petitioner to participate in a fact-finding 
146.16 	conference conducted by an administrative law judge assigned by the Office of 
146.17 	Administrative Hearings. The fact-finding conference is an informal proceeding not subject 
146.18 	to the provisions of Minnesota Rules, chapter 1400, except that part 1400.7300 shall govern 
146.19 	the admissibility of evidence and part 1400.8603 shall govern how the fact-finding conference 
146.20 	is conducted. The administrative law judge must issue a report and a recommendation to 
146.21 	the governing board.
146.22 	(c) If the petitioner's claim relates to disability benefits, the executive director may direct 
146.23 	the petitioner to participate in a vocational assessment conducted by a qualified rehabilitation 
146.24 	counselor under contract with the covered pension plan. The counselor must issue a report 
146.25 	regarding the assessment to the governing board.
146.26 	(b)(d) Not less than 30 calendar days before the date scheduled for the hearing date
146.27 	before the governing board, the chief administrative officerexecutive director must provide 
146.28 	by mail tonotify the petitioner an acknowledgment of the receipt of the person's petition 
146.29 	and a follow-up notice of the time and place of the meeting at which the governing board 
146.30 	is scheduled to consider the petition andconduct the hearing. If there has been no fact-finding 
146.31 	conference under paragraph (b), not less than 15 days before the date scheduled for the 
146.32 	hearing, the petitioner and the executive director must provide a copyto the governing board 
146.33 	and the other party copies of all relevant documents,documentary evidence, summaries, 
147.1 	and recommendations assembled by or on behalf of the plan administration to be considered 
147.2 	by the governing board that will be presented and a list of witnesses who will testify, along 
147.3 	with a summary of their testimony.
147.4 	(c) All documents and materials that the petitioner wishes to be part of the record for 
147.5 	review must be filed with the chief administrative officer and must be received in the offices 
147.6 	of the covered pension plan at least 15 days before the date of the meeting at which the 
147.7 	petition is scheduled to be heard.
147.8 	(d) A(e) The petitioner may request a continuancepostponement of athe date scheduled 
147.9 	for the hearing if the request is received by the chief administrative officer withinbefore 
147.10 	the governing board within a reasonable time, but no later than ten calendar days ofbefore 
147.11 	the scheduled hearing date of the applicable board meeting. The chief administrative officer 
147.12 	must reschedule the review within a reasonable time. Only one continuance may be granted 
147.13 	to any petitioner. A petitioner shall be granted only one postponement unless the applicable 
147.14 	covered pension plan agrees to additional postponements.

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

147.16 	Sec. 15. Minnesota Statutes 2016, section 356.96, subdivision 8, is amended to read:
147.17 		Subd. 8.Record for review. (a) All evidence, including all records, documents, and 
147.18 	affidavits in the possession of the covered pension plan of which the covered pension plan 
147.19 	desires to avail itself and be considered by the governing board, and all evidence which the 
147.20 	petitioner wishes to present to the governing board, including any evidence which would 
147.21 	otherwise be classified by law as "private," must be made part of the hearing record.
147.22 	(b) The chief administrative officerexecutive director must provide a copy of the record 
147.23 	to each member of the governing board at least sevenfive days before the scheduled hearing 
147.24 	date.
147.25 	(c) Any additional document, affidavit, or other relevant information that the petitioner 
147.26 	requests be part of the record may be admitted with the consent of the governing board. If 
147.27 	a fact-finding conference under subdivision 7, paragraph (b), is not conducted, the record 
147.28 	is limited to those materials provided to the petitioner in accordance with subdivision 7, 
147.29 	paragraph (d), those filed by the petitioner with the covered pension plan in a timely manner 
147.30 	in accordance with subdivision 7, paragraph (e), any vocational assessment report under 
147.31 	subdivision 7, paragraph (c), and any testimony at the hearing before the governing board. 
147.32 	Any additional evidence may be placed in the record pursuant to subdivision 10, paragraph 
147.33 	(b).
148.1 	(d) If a fact-finding conference under subdivision 7, paragraph (b), or a contested case 
148.2 	hearing under subdivision 12, paragraph (b), is conducted, the record before the governing 
148.3 	board must be limited to the following:
148.4 	(1) the record from the Office of Administrative Hearings;
148.5 	(2) seven-page submissions by the petitioner and a representative of the covered pension 
148.6 	plan commenting on the administrative law judge's recommendation; and
148.7 	(3) any vocational assessment report under subdivision 7, paragraph (c).

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

148.9 	Sec. 16. Minnesota Statutes 2016, section 356.96, subdivision 9, is amended to read:
148.10 		Subd. 9.Amended determination. At any time before the hearing before the governing 
148.11 	board, for good cause shown and made part of the records of the plan, the chief administrative 
148.12 	officerexecutive director may reverse, alter, amend, or modify the prior decision which is 
148.13 	subject to review under this section by issuing an amended decision determination to the 
148.14 	petitioner. Upon doing so, the chief administrative officerexecutive director may cancel 
148.15 	the governing board's scheduled review of the person's petition and shall so notify the 
148.16 	petitioner.

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

148.18 	Sec. 17. Minnesota Statutes 2016, section 356.96, subdivision 10, is amended to read:
148.19 		Subd. 10.Board hearing. (a) The governing board shall hold a timely hearing on a 
148.20 	petition for review as part of a regularly scheduled board meeting, or as part of a special 
148.21 	meeting if so scheduled. All governing board members who participate in the 
148.22 	decision-making process must be familiar with the record. The governing board shall make 
148.23 	its decision on a petition solely on the record as submitted and on the proceedings of the 
148.24 	hearing.
148.25 	(b) At the hearing, the petitioner, the petitioner's attorney, and the chief administrative 
148.26 	officerrepresentative, if any, the executive director and a representative of the covered 
148.27 	pension plan who does not also serve as the governing board's legal advisor during the 
148.28 	board's decision-making process, may state and discuss with the governing board their 
148.29 	positions with respect to the petition. If no fact-finding conference under subdivision 7, 
148.30 	paragraph (b), or contested case hearing under subdivision 12, paragraph (b), was conducted, 
148.31 	additional evidence may be received in the form of testimony from previously disclosed 
148.32 	witnesses. The governing board may allow further documentation to be placed in the record 
149.1 	at the board meeting only with the agreement of both the chief administrative officer
149.2 	executive director and the petitioner. The chief administrative officerexecutive director 
149.3 	may not otherwise participate in the board's decision-making process.
149.4 	(b) When a petition presents a contested issue of law, an assistant attorney general may 
149.5 	participate and may argue on behalf of the legal position taken by the chief administrative 
149.6 	officer if that assistant attorney general does not also serve as the governing board's legal 
149.7 	advisor during the board's decision-making process.
149.8 	(c) A motion by a board member, supported by a summary of the relevant facts, 
149.9 	conclusions and reasons, as properly amended and approved by a majority of the governing 
149.10 	board, constitutes the board's final decision. A verbatim statement of the board's final 
149.11 	decision must be served upon the petitioner. If the decision is contrary to the petitioner's 
149.12 	desired outcome, the notice shall inform the petitioner of the appeal rights set forth in 
149.13 	subdivision 13.
149.14 	(d)(c) If a petitioner who received timely notice of a scheduled hearing fails to appear, 
149.15 	the governing board may nevertheless hear the petition and issue a decision.
149.16 	(d) The governing board's decision shall be made upon a motion by a board member 
149.17 	and approval by a majority of the governing board. The governing board must issue its 
149.18 	decision as a written order containing findings of fact, conclusions of law, and the board's 
149.19 	decision no later than 30 days after the hearing. If the decision is contrary to the petitioner's 
149.20 	desired outcome, the notice must inform the petitioner of the appeal rights set forth in 
149.21 	subdivision 13.

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

149.23 	Sec. 18. Minnesota Statutes 2016, section 356.96, subdivision 11, is amended to read:
149.24 		Subd. 11.Disability medical issues. (a) If a person petitions the governing boardthe 
149.25 	petitioner seeks to reverse or modify a determination which foundby the executive director 
149.26 	that there exists nowas insufficient medical data supportingto support an application for 
149.27 	disability benefits, the governing board may reverse that determination only if there is in 
149.28 	fact medical evidence supporting the application. The governing board has the discretion 
149.29 	to resubmit a disability benefit application at any time to a medical advisor for 
149.30 	reconsideration, and the resubmission may include an instruction that further medical 
149.31 	examinations be obtained.
149.32 	(b) The governing board may make a determination contrary to the recommendation of 
149.33 	the medical advisor only if there is expert medical evidence in the record to support its 
150.1 	contrary decision. If there is no medical evidence contrary to the opinion of the medical 
150.2 	advisor in the record and the medical advisor attests that the decision was made in accordance 
150.3 	with the applicable disability standard, the board must follow the decision of the medical 
150.4 	advisor regarding the cause of the disability.
150.5 	(c) The obligation of the governing board to follow the decision of the medical advisor 
150.6 	under paragraph (b) does not apply to instances when the governing board makes a 
150.7 	determination different from the recommendation of the medical advisor on issues that do 
150.8 	not involve medical issues.

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

150.10 	Sec. 19. Minnesota Statutes 2016, section 356.96, subdivision 12, is amended to read:
150.11 		Subd. 12.Referral for administrative hearing. (a) Notwithstanding any provision of 
150.12 	sections 14.03, 14.06, and 14.57 to 14.69 to the contrary, a challenge to a determination of 
150.13 	the chief administrative officer of a covered pension planA fact-finding conference under 
150.14 	subdivision 7, paragraph (b), must be conducted exclusively under the procedures set forth 
150.15 	in this section and is not as a contested case under chapter 14.
150.16 	(b) Notwithstanding the provisions of paragraph (a), A governing board, in its sole 
150.17 	discretion, may refer a petition brought under this section to the Office of Administrative 
150.18 	Hearings for a contested case hearing under sections 14.57 to 14.69.

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

150.20 	Sec. 20. Minnesota Statutes 2016, section 356.96, subdivision 13, is amended to read:
150.21 		Subd. 13.Appeal of the governing board's decision; judicial review. WithinNo later 
150.22 	than 60 days ofafter the date of the mailing of the notice of the governing board's decision, 
150.23 	the petitioner may appeal the decision by filing a writ of certiorari with the Court of Appeals 
150.24 	under section 606.01 and Rule 115 of the Minnesota Rules of Civil Appellate Procedure. 
150.25 	Failure by a person to appeal to the Court of Appeals within the 60-day period precludes 
150.26 	the person from later raising, in any subsequent administrative hearing or court proceeding, 
150.27 	those substantive and procedural issues that reasonably should have been raised upon a 
150.28 	timely appeal.

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

150.30 	Sec. 21.  REPEALER.
 150.31 	(a) Minnesota Statutes 2016, section 356.611, subdivisions 3, 3a, 4, and 5, are repealed.
151.1 	(b) Minnesota Statutes 2016, section 356.96, subdivisions 14 and 15, are repealed.

151.2 	EFFECTIVE DATE. Paragraph (a) is effective July 1, 2017. Paragraph (b) is effective 
151.3 	the day following final enactment.

151.4 	ARTICLE 14
151.5 	ACTUARIAL ASSUMPTION CHANGES

151.6 	Section 1. Minnesota Statutes 2016, section 356.215, subdivision 8, is amended to read:
151.7 		Subd. 8.Interest and salary assumptions. (a) The actuarial valuation must use the 
151.8 	applicable following interest assumption:
151.9 	(1) select and ultimate interest rate assumption

151.11151.10
	plan
	ultimate interest rate 
assumption
		
151.12	teachers retirement plan
	8.5%
		
151.13 	The select preretirement interest rate assumption for the period through June 30, 2017, 
151.14 	is eight percent.
151.15 	(2) single rate interest rate assumption

151.17151.16
	plan
	interest rate 
assumption
		
151.18	general state employees retirement plan
	8%
		
151.19	correctional state employees retirement plan
	8
		
151.20	State Patrol retirement plan
	8
		
151.21
151.22
151.23	legislators retirement plan, and for the 
constitutional officers calculation of total plan 
liabilities
	0
		
151.24	judges retirement plan
	8
		
151.25	general public employees retirement plan
	8
		
151.26	public employees police and fire retirement plan
	8
		
151.27
151.28	local government correctional service retirement 
plan
	8
		
151.29	St. Paul teachers retirement plan
	8
		
151.30	Bloomington Fire Department Relief Association
	6
		
151.31
151.32	local monthly benefit volunteer firefighter relief 
associations
	5
		
151.33
151.34	monthly benefit retirement plans in the statewide 
volunteer firefighter retirement plan
	6
		
151.35 	(b)(1) If funding stability has been attained, the valuation must use a postretirement 
151.36 	adjustment rate actuarial assumption equal to the postretirement adjustment rate specified 
152.1 	in section 354A.27, subdivision 7;354A.29, subdivision 9;, or 356.415, subdivision 1, 
152.2 	whichever applies.
152.3 	(2) If funding stability has not been attained, the valuation must use a select postretirement 
152.4 	adjustment rate actuarial assumption equal to the postretirement adjustment rate specified 
152.5 	in section 354A.27, subdivision 6a;354A.29, subdivision 8;, or 356.415, subdivision 1a, 
152.6 	1b, 1c, 1d, 1e, or 1f, whichever applies, for a period ending when the approved actuary 
152.7 	estimates that the plan will attain the defined funding stability measure, and thereafter an 
152.8 	ultimate postretirement adjustment rate actuarial assumption equal to the postretirement 
152.9 	adjustment rate under section 354A.27, subdivision 7;354A.29, subdivision 9;, or 356.415, 
152.10 	subdivision 1, for the applicable period or periods beginning when funding stability is 
152.11 	projected to be attained.
152.12 	(c) The actuarial valuation must use the applicable following single rate future salary 
152.13 	increase assumption, the applicable following modified single rate future salary increase 
152.14 	assumption, or the applicable following graded rate future salary increase assumption:
152.15 	(1) single rate future salary increase assumption

152.16	plan
	future salary increase assumption
	
152.17	legislators retirement plan
		5%
	
152.18	judges retirement plan
		2.75
	
152.19	Bloomington Fire Department Relief Association
		4
	
152.20 	(2) age-related future salary increase age-related select and ultimate future salary increase 
152.21 	assumption or graded rate future salary increase assumption

152.22	plan
	future salary increase assumption
	
152.23	local government correctional service retirement plan
	assumption B
	
152.24	St. Paul teachers retirement plan
	assumption A
	
152.25 	For plans other than the St. Paul Teachers 
152.26 	Retirement plan and the local government 
152.27 	correctional service retirement plan, the select 
152.28 	calculation is:Fund Association, during thea 
152.29 	designated select period of 15 years, in 
152.30 	addition to the age-based rates shown below, 
152.31 	a designated percentage rate of 0.2 percent is 
152.32 	multiplied by the result of the designated 
152.33 	integer15 minus T, where T is the number of 
152.34 	completed years of service, and is added to 
153.1 	the applicable future salary increase 
153.2 	assumption. The designated select period is 
153.3 	ten years and the designated integer is ten for 
153.4 	the local government correctional service 
153.5 	retirement plan and 15 for the St. Paul 
153.6 	Teachers Retirement Fund Association. The 
153.7 	designated percentage rate is 0.2 percent for 
153.8 	the St. Paul Teachers Retirement Fund 
153.9 	Association.
153.10 	The ultimate future salary increase assumption is:

153.11	age
	A
	B
		
153.12	16
	5.9%
	8.75%
		
153.13	17
	5.9
	8.75
		
153.14	18
	5.9
	8.75
		
153.15	19
	5.9
	8.75
		
153.16	20
	5.9
	8.75
		
153.17	21
	5.9
	8.5
		
153.18	22
	5.9
	8.25
		
153.19	23
	5.85
	8
		
153.20	24
	5.8
	7.75
		
153.21	25
	5.75
	7.5
		
153.22	26
	5.7
	7.25
		
153.23	27
	5.65
	7
		
153.24	28
	5.6
	6.75
		
153.25	29
	5.55
	6.5
		
153.26	30
	5.5
	6.5
		
153.27	31
	5.45
	6.25
		
153.28	32
	5.4
	6.25
		
153.29	33
	5.35
	6.25
		
153.30	34
	5.3
	6
		
153.31	35
	5.25
	6
		
153.32	36
	5.2
	5.75
		
153.33	37
	5.15
	5.75
		
153.34	38
	5.1
	5.75
		
153.35	39
	5.05
	5.5
		
153.36	40
	5
	5.5
		
153.37	41
	4.95
	5.5
		
154.1	42
	4.9
	5.25
		
154.2	43
	4.85
	5
		
154.3	44
	4.8
	5
		
154.4	45
	4.75
	4.75
		
154.5	46
	4.7
	4.75
		
154.6	47
	4.65
	4.75
		
154.7	48
	4.6
	4.75
		
154.8	49
	4.55
	4.75
		
154.9	50
	4.5
	4.75
		
154.10	51
	4.45
	4.75
		
154.11	52
	4.4
	4.75
		
154.12	53
	4.35
	4.75
		
154.13	54
	4.3
	4.75
		
154.14	55
	4.25
	4.5
		
154.15	56
	4.2
	4.5
		
154.16	57
	4.15
	4.25
		
154.17	58
	4.1
	4
		
154.18	59
	4.05
	4
		
154.19	60
	4
	4
		
154.20	61
	4
	4
		
154.21	62
	4
	4
		
154.22	63
	4
	4
		
154.23	64
	4
	4
		
154.24	65
	4
	3.75
		
154.25	66
	4
	3.75
		
154.26	67
	4
	3.75
		
154.27	68
	4
	3.75
		
154.28	69
	4
	3.75
		
154.29	70
	4
	3.75
		
154.30 	(3) service-related ultimate future salary increase assumption

154.31
154.32	general state employees retirement plan of the Minnesota 
State Retirement System
	assumption A
	
154.33
154.34	general employees retirement plan of the Public 
Employees Retirement Association
	assumption B
	
154.35	Teachers Retirement Association
	assumption C
	
154.36	public employees police and fire retirement plan
	assumption D
	
154.37	State Patrol retirement plan
	assumption E
	
155.1
155.2	correctional state employees retirement plan of the 
Minnesota State Retirement System
	assumption F

155.3
155.4	service 
length
	A
	B
	C
	D
	E
	F
	
155.5155.6	1
	10.25 14%
	11.78
11.5%
	12 9.5%
	12.75%
	7.75%
	5.75%
	
155.7	2
	7.85 11.5
	8.65 8.5
	9 9.5
	10.75
	7.25
	5.6
	
155.8	3
	6.65 6.25
	7.21 7
	8 7.75
	8.75
	6.75
	5.45
	
155.9	4
	5.95 5.5
	6.33 6
	7.5 7.25
	7.75
	6.5
	5.3
	
155.10	5
	5.45 5.25
	5.72 5.5
	7.25 7
	6.25
	6.25
	5.15
	
155.11	6
	5.05 5.15
	5.27 5.2
	7
	5.85
	6
	5
	
155.12	7
	4.75 5
	4.91 4.9
	6.85
	5.55
	5.75
	4.85
	
155.13	8
	4.45 4.75
	4.62 4.8
	6.7
	5.35
	5.6
	4.7
	
155.14	9
	4.25 4.5
	4.38 4.7
	6.55
	5.15
	5.45
	4.55
	
155.15	10
	4.15 4.25
	4.17 4.5
	6.4
	5.05
	5.3
	4.4
	
155.16	11
	3.95 4.2
	3.99 4.25
	6.25
	4.95
	5.15
	4.3
	
155.17	12
	3.85 4.15
	3.83 4.1
	6
	4.85
	5
	4.2
	
155.18	13
	3.75 4.1
	3.69 4
	5.75
	4.75
	4.85
	4.1
	
155.19	14
	3.55 4.05
	3.57 3.9
	5.5
	4.65
	4.7
	4
	
155.20	15
	3.45 4
	3.45 3.9
	5.25
	4.55
	4.55
	3.9
	
155.21	16
	3.35 3.95
	3.35 3.85
	5
	4.55
	4.4
	3.8
	
155.22	17
	3.25 3.9
	3.26 3.8
	4.75
	4.55
	4.25
	3.7
	
155.23	18
	3.25 3.85
	3.25 3.75
	4.5
	4.55
	4.1
	3.6
	
155.24	19
	3.25 3.8
	3.25 3.75
	4.25 4.3
	4.55
	3.95
	3.5
	
155.25	20
	3.25 3.75
	3.25 3.75
	4 4.2
	4.55
	3.8
	3.5
	
155.26	21
	3.25 3.7
	3.25 3.75
	3.9 4.1
	4.45
	3.75
	3.5
	
155.27	22
	3.25 3.65
	3.25 3.7
	3.8 4
	4.35
	3.75
	3.5
	
155.28	23
	3.25 3.6
	3.25 3.6
	3.7 3.9
	4.25
	3.75
	3.5
	
155.29	24
	3.25 3.55
	3.25 3.6
	3.6 3.8
	4.25
	3.75
	3.5
	
155.30	25
	3.25 3.5
	3.25 3.6
	3.5 3.7
	4.25
	3.75
	3.5
	
155.31	26
	3.25 3.5
	3.25 3.5
	3.5 3.6
	4.25
	3.75
	3.5
	
155.32	27
	3.25 3.5
	3.25 3.5
	3.5
	4.25
	3.75
	3.5
	
155.33	28
	3.25 3.5
	3.25 3.5
	3.5
	4.25
	3.75
	3.5
	
155.34	29
	3.25 3.5
	3.25 3.5
	3.5
	4.25
	3.75
	3.5
	
155.35	30 or more
	3.25 3.5
	3.25 3.5
	3.5
	4.25
	3.75
	3.5
	
155.36 	(d) The actuarial valuation must use the applicable following payroll growth assumption 
155.37 	for calculating the amortization requirement for the unfunded actuarial accrued liability 
155.38 	where the amortization retirement is calculated as a level percentage of an increasing payroll:

156.1	plan
	payroll growth assumption
	
156.2
156.3	general state employees retirement plan of the Minnesota 
State Retirement System
	3.5%
	
156.4	correctional state employees retirement plan
	3.5
	
156.5	State Patrol retirement plan
	3.5
	
156.6	judges retirement plan
	2.75
	
156.7
156.8	general employees retirement plan of the Public 
Employees Retirement Association
	3.5
	
156.9	public employees police and fire retirement plan
	3.5
	
156.10	local government correctional service retirement plan
	3.5
	
156.11	teachers retirement plan
	3.75 3.5
	
156.12	St. Paul teachers retirement plan
	4
	
156.13 	(e) The assumptions set forth in paragraphs (c) and (d) continue to apply, unless a 
156.14 	different salary assumption or a different payroll increase assumption:
156.15 	(1) has been proposed by the governing board of the applicable retirement plan;
156.16 	(2) is accompanied by the concurring recommendation of the actuary retained under 
156.17 	section 356.214, subdivision 1, if applicable, or by the approved actuary preparing the most 
156.18 	recent actuarial valuation report if section 356.214 does not apply; and
156.19 	(3) has been approved or deemed approved under subdivision 18.

156.20 	EFFECTIVE DATE. This section is effective July 1, 2017, and applies to actuarial 
156.21 	valuations prepared on or after that date.

156.22 	ARTICLE 15
156.23 	VOLUNTEER FIREFIGHTER RELIEF ASSOCIATIONS MODIFICATIONS

156.24 	Section 1. Minnesota Statutes 2016, section 356A.06, subdivision 7, is amended to read:
156.25 		Subd. 7.Expanded list of authorized investment securities. (a) Authority. A covered 
156.26 	pension plan not described by subdivision 6, paragraph (a), is an expanded list plan and 
156.27 	shall invest its assets as specified in this subdivision. The governing board of an expanded 
156.28 	list plan may select and appoint investment agencies to act for or on its behalf.
156.29 	(b) Securities generally; investment forms. An expanded list plan is authorized to 
156.30 	purchase, sell, lend, and exchange the investment securities authorized under this subdivision, 
156.31 	including puts and call options and future contracts traded on a contract market regulated 
156.32 	by a governmental agency or by a financial institution regulated by a governmental agency. 
156.33 	These securities may be owned directly or through shares in exchange-traded or mutual 
156.34 	funds, or as units in commingled trusts, subject to any limitations specified in this subdivision.
157.1 	(c) Government obligations. An expanded list plan is authorized to invest funds in 
157.2 	governmental bonds, notes, bills, mortgages, and other evidences of indebtedness if the 
157.3 	issue is backed by the full faith and credit of the issuer or the issue is rated among the top 
157.4 	four quality rating categories by a nationally recognized rating agency. The obligations in 
157.5 	which funds may be invested under this paragraph are guaranteed or insured issues of:
157.6 	(1) the United States, one of its agencies, one of its instrumentalities, or an organization 
157.7 	created and regulated by an act of Congress;
157.8 	(2) the Dominion of Canada or one of its provinces if the principal and interest are 
157.9 	payable in United States dollars;
157.10 	(3) a state or one of its municipalities, political subdivisions, agencies, or 
157.11 	instrumentalities; and
157.12 	(4) a United States government-sponsored organization of which the United States is a 
157.13 	member if the principal and interest are payable in United States dollars.
157.14 	(d) Investment-grade corporate obligations. An expanded list plan is authorized to 
157.15 	invest funds in bonds, notes, debentures, transportation equipment obligations, or any other 
157.16 	longer term evidences of indebtedness issued or guaranteed by a corporation organized 
157.17 	under the laws of the United States or any of its states, or the Dominion of Canada or any 
157.18 	of its provinces if:
157.19 	(1) the principal and interest are payable in United States dollars; and
157.20 	(2) the obligations are rated among the top four quality categories by a nationally 
157.21 	recognized rating agency.
157.22 	(e) Below-investment-grade corporate obligations. An expanded list plan is authorized 
157.23 	to invest in unrated corporate obligations or in corporate obligations that are not rated among 
157.24 	the top four quality categories by a nationally recognized rating agency if:
157.25 	(1) the aggregate value of these obligations does not exceed five percent of the covered 
157.26 	pension plan's market value;
157.27 	(2) the covered pension plan's participation is limited to 50 percent of a single offering 
157.28 	subject to this paragraph; and
157.29 	(3) the covered pension plan's participation is limited to 25 percent of an issuer's 
157.30 	obligations subject to this paragraph.
157.31 	(f) Other obligations. (1) An expanded list plan is authorized to invest funds in:
158.1 	(i) bankers acceptances and deposit notes if issued by a United States bank that is rated 
158.2 	in the highest four quality categories by a nationally recognized rating agency;
158.3 	(ii) certificates of deposit if issued by a United States bank or savings institution rated 
158.4 	in the highest four quality categories by a nationally recognized rating agency or whose 
158.5 	certificates of deposit are fully insured by federal agencies, or if issued by a credit union in 
158.6 	an amount within the limit of the insurance coverage provided by the National Credit Union 
158.7 	Administration;
158.8 	(iii) commercial paper if issued by a United States corporation or its Canadian subsidiary 
158.9 	and if rated in the highest two quality categories by a nationally recognized rating agency;
158.10 	(iv) mortgage securities and asset-backed securities if rated in the top four quality 
158.11 	categories by a nationally recognized rating agency;
158.12 	(v) repurchase agreements and reverse repurchase agreements if collateralized with 
158.13 	letters of credit or securities authorized in this section;
158.14 	(vi) guaranteed investment contracts if issued by an insurance company or a bank that 
158.15 	is rated in the top four quality categories by a nationally recognized rating agency or 
158.16 	alternative guaranteed investment contracts if the underlying assets comply with the 
158.17 	requirements of this subdivision;
158.18 	(vii) savings accounts if fully insured by a federal agency; and
158.19 	(viii) guaranty fund certificates, surplus notes, or debentures if issued by a domestic 
158.20 	mutual insurance company.
158.21 	(2) Sections 16A.58, 16C.03, subdivision 4, and 16C.05 do not apply to certificates of 
158.22 	deposit and collateralization agreements executed by the covered pension plan under clause 
158.23 	(1), item (ii).
158.24 	(3) In addition to investments authorized by clause (1), item (iv), an expanded list plan 
158.25 	is authorized to purchase from the Minnesota Housing Finance Agency all or any part of a 
158.26 	pool of residential mortgages, not in default, that has previously been financed by the 
158.27 	issuance of bonds or notes of the agency. The covered pension plan may also enter into a 
158.28 	commitment with the agency, at the time of any issue of bonds or notes, to purchase at a 
158.29 	specified future date, not exceeding 12 years from the date of the issue, the amount of 
158.30 	mortgage loans then outstanding and not in default that have been made or purchased from 
158.31 	the proceeds of the bonds or notes. The covered pension plan may charge reasonable fees 
158.32 	for any such commitment and may agree to purchase the mortgage loans at a price sufficient 
158.33 	to produce a yield to the covered pension plan comparable, in its judgment, to the yield 
159.1 	available on similar mortgage loans at the date of the bonds or notes. The covered pension 
159.2 	plan may also enter into agreements with the agency for the investment of any portion of 
159.3 	the funds of the agency. The agreement must cover the period of the investment, withdrawal 
159.4 	privileges, and any guaranteed rate of return.
159.5 	(g) Corporate stocks. An expanded list plan is authorized to invest in stocks or 
159.6 	convertible issues of any corporation organized under the laws of the United States or any 
159.7 	of its states, any corporation organized under the laws of the Dominion of Canada or any 
159.8 	of its provinces, or any corporation listed on an exchange that is regulated by an agency of 
159.9 	the United States or of the Canadian national government.
159.10 	An investment in any corporation must not exceed five percent of the total outstanding 
159.11 	shares of that corporation, except that an expanded list plan may hold up to 20 percent of 
159.12 	the shares of a real estate investment trust and up to 20 percent of the shares of a closed 
159.13 	mutual fund. Purchase of shares of exchange-traded or mutual funds shall be consistent 
159.14 	with paragraph (b).
159.15 	(h) Other investments. (1) In addition to the investments authorized in paragraphs (b) 
159.16 	to (g), and subject to the provisions in clause (2), an expanded list plan is authorized to 
159.17 	invest funds in:
159.18 	(i) equity and debt investment businesses through participation in limited partnerships, 
159.19 	trusts, private placements, limited liability corporations, limited liability companies, limited 
159.20 	liability partnerships, and corporations;
159.21 	(ii) real estate ownership interests or loans secured by mortgages or deeds of trust or 
159.22 	shares of real estate investment trusts, through investment in limited partnerships, 
159.23 	bank-sponsored collective funds, trusts, mortgage participation agreements, and insurance 
159.24 	company commingled accounts, including separate accounts;
159.25 	(iii) resource investments through limited partnerships, trusts, private placements, limited 
159.26 	liability corporations, limited liability companies, limited liability partnerships, and 
159.27 	corporations; and
159.28 	(iv) international securities.
159.29 	(2) The investments authorized in clause (1) must conform to the following provisions:
159.30 	(i) the aggregate value of all investments made under clause (1), items (i), (ii), and (iii), 
159.31 	may not exceed 35 percent of the market value of the fund for which the expanded list plan 
159.32 	is investing;
160.1 	(ii) there must be at least four unrelated owners of the investment other than the expanded 
160.2 	list plan for investments made under clause (1), item (i), (ii), or (iii);
160.3 	(iii) the expanded list plan's participation in an investment vehicle is limited to 20 percent 
160.4 	thereof for investments made under clause (1), item (i), (ii), or (iii);
160.5 	(iv) the expanded list plan's participation in a limited partnership does not include a 
160.6 	general partnership interest or other interest involving general liability. The expanded list 
160.7 	plan may not engage in any activity as a limited partner which creates general liability;
160.8 	(v) the aggregate value of all unrated obligations and obligations that are not rated among 
160.9 	the top four quality categories by a nationally recognized rating agency authorized by 
160.10 	paragraph (e) and clause (1), item (iv), must not exceed five percent of the covered plan's 
160.11 	market value; and
160.12 	(vi) for volunteer firefighter relief associations, emerging market equity and international 
160.13 	debt investments authorized under clause (1), item (iv), must not exceed 15 percent of the 
160.14 	association's special fund market value.
160.15 	(i) Supplemental plan investments. The governing body of an expanded list plan may 
160.16 	certify assets to the State Board of Investment for investment under section 11A.17.
160.17 	(j) Asset mix limitations. The aggregate value of an expanded list plan's investments 
160.18 	under paragraphs (g) and (h) and equity investments under paragraph (i), regardless of the 
160.19 	form in which these investments are held, must not exceed 85 percent of the covered plan's 
160.20 	market value.

160.21 	EFFECTIVE DATE. This section is effective January 1, 2018.

160.22 	Sec. 2. Minnesota Statutes 2016, section 424A.001, subdivision 2, is amended to read:
160.23 		Subd. 2.Fire department. "Fire department" includes a municipal fire department or,
160.24 	an independent nonprofit firefighting corporation, and a fire department established as or 
160.25 	operated by a joint powers entity under section 471.59.

160.26 	EFFECTIVE DATE. This section is effective January 1, 2018.

160.27 	Sec. 3. Minnesota Statutes 2016, section 424A.001, is amended by adding a subdivision 
160.28 	to read:
160.29 		Subd. 2a.Municipal. "Municipal" means of a city or township.

160.30 	EFFECTIVE DATE. This section is effective January 1, 2018.

161.1 	Sec. 4. Minnesota Statutes 2016, section 424A.001, subdivision 3, is amended to read:
161.2 		Subd. 3.Municipality. "Municipality" means a municipality city or township which 
161.3 	has established a fire department with which the relief association is directly associated, or 
161.4 	the municipalities a city or township which have has entered into a contract with the 
161.5 	independent nonprofit firefighting corporation of which the relief association is a subsidiary
161.6 	directly associated, or a city or township that has entered into a contract with a joint powers 
161.7 	entity established under section 471.59 of which the relief association is directly associated.

161.8 	EFFECTIVE DATE. This section is effective January 1, 2018.

161.9 	Sec. 5. Minnesota Statutes 2016, section 424A.001, subdivision 10, is amended to read:
161.10 		Subd. 10.Volunteer firefighter. "Volunteer firefighter" means a person who is a member 
161.11 	of the applicable fire department or the independent nonprofit firefighting corporation and 
161.12 	is eligible for membership in the applicable relief association and:
161.13 	(i) is engaged in providing emergency response services or delivering fire education or 
161.14 	prevention services as a member of a municipal fire department, a joint powers entity fire 
161.15 	department, or an independent nonprofit firefighting corporation;
161.16 	(ii) is trained in or is qualified to provide fire suppression duties or to provide fire 
161.17 	prevention duties under subdivision 8; and
161.18 	(iii) meets any other minimum firefighter and service standards established by the fire 
161.19 	department or the independent nonprofit firefighting corporation or specified in the articles 
161.20 	of incorporation or bylaws of the relief association.

161.21 	EFFECTIVE DATE. This section is effective January 1, 2018.

161.22 	Sec. 6. Minnesota Statutes 2016, section 424A.002, subdivision 1, is amended to read:
161.23 		Subdivision 1.Authorization. A municipal fire department or an independent nonprofit 
161.24 	firefighting corporation, with approval by the applicable municipality or municipalities, 
161.25 	may establish a new volunteer firefighter relief association or may retain an existing volunteer 
161.26 	firefighter relief association. A municipal fire department or an independent nonprofit 
161.27 	firefighting corporation may be associated with only one volunteer firefighter relief 
161.28 	association at one time.

161.29 	EFFECTIVE DATE. This section is effective January 1, 2018.

162.1 	Sec. 7. [424A.003] CERTIFICATION OF SERVICE CREDIT.
162.2 	(a) When a municipal fire department, a joint powers fire department, or an independent 
162.3 	nonprofit firefighting corporation is directly associated with the volunteer firefighters relief 
162.4 	association, the fire chief shall certify annually by March 31 the service credit for the 
162.5 	previous calendar year of each volunteer firefighter rendering active service with the fire 
162.6 	department.
162.7 	(b) The certification shall be made to an officer of the relief association's board of trustees 
162.8 	and to the municipal clerk or clerk-treasurer of the largest municipality in population served 
162.9 	by the associated fire department.
162.10 	(c) The fire chief shall notify each volunteer firefighter rendering active service with 
162.11 	the fire department of the amount of service credit rendered by the firefighter for the previous 
162.12 	calendar year. The service credit notification and a description of the process and deadlines 
162.13 	for the firefighter to challenge the fire chief's determination of service credit must be provided 
162.14 	to the firefighter 60 days prior to its certification to the relief association and municipality. 
162.15 	If the service credit amount is challenged, the fire chief shall accept and consider any 
162.16 	additional pertinent information and shall make a final determination of service credit.
162.17 	(d) The service credit certification must be expressed as the number of completed months 
162.18 	of the previous year during which an active volunteer firefighter rendered at least the 
162.19 	minimum level of duties as specified and required by the fire department under the rules, 
162.20 	regulations, and policies applicable to the fire department. No more than one year of service 
162.21 	credit may be certified for a calendar year.
162.22 	(e) If a volunteer firefighter who is a member of the relief association leaves active 
162.23 	firefighting service to render active military service that is required to be governed by the 
162.24 	federal Uniformed Services Employment and Reemployment Rights Act, as amended, the 
162.25 	firefighter must be certified as providing service credit for the period of the military service, 
162.26 	up to the applicable limit of the federal Uniformed Services Employment and Reemployment 
162.27 	Rights Act. If the volunteer firefighter does not return from the military service in compliance 
162.28 	with the federal Uniformed Services Employment and Reemployment Rights Act, the service 
162.29 	credits applicable to that military service credit period are forfeited and canceled at the end 
162.30 	of the calendar year in which the time limit set by federal law occurs.

162.31 	EFFECTIVE DATE. This section is effective January 1, 2018.

163.1 	Sec. 8. Minnesota Statutes 2016, section 424A.01, subdivision 1, is amended to read:
163.2 		Subdivision 1.Minors.  No volunteer firefighters relief association associated with a 
163.3 	municipality, a joint powers entity, or an independent nonprofit firefighting corporation 
163.4 	may include as a relief association member a minor serving as a volunteer firefighter.

163.5 	EFFECTIVE DATE. This section is effective January 1, 2018.

163.6 	Sec. 9. Minnesota Statutes 2016, section 424A.01, is amended by adding a subdivision to 
163.7 	read:
163.8 		Subd. 4a.Prohibition on receipt of concurrent service credit. No firefighter may be 
163.9 	credited with service credit in a volunteer firefighters relief association for the same hours 
163.10 	of service for which coverage is already provided in a fund operated pursuant to chapter 
163.11 	353.

163.12 	EFFECTIVE DATE. This section is effective January 1, 2018, and applies to service 
163.13 	rendered on or after that date.

163.14 	Sec. 10. Minnesota Statutes 2016, section 424A.01, subdivision 5, is amended to read:
163.15 		Subd. 5.Fire prevention personnel. (a) If the fire department is a municipal department 
163.16 	and the applicable municipality approves, or if the fire department is an independent nonprofit 
163.17 	firefighting corporation and the contracting municipality or municipalities approve, the fire 
163.18 	department may employ or otherwise utilize the services of persons as volunteer firefighters 
163.19 	to perform fire prevention duties and to supervise fire prevention activities.
163.20 	(b) Personnel serving in fire prevention positions are eligible to be members of the 
163.21 	applicable volunteer firefighter relief association and to qualify for service pension or other 
163.22 	benefit coverage of the relief association on the same basis as fire department personnel 
163.23 	who perform fire suppression duties.
163.24 	(c) Personnel serving in fire prevention positions also are eligible to receive any other 
163.25 	benefits under the applicable law or practice for services on the same basis as personnel 
163.26 	who are employed to perform fire suppression duties.

163.27 	EFFECTIVE DATE. This section is effective January 1, 2018.

163.28 	Sec. 11. Minnesota Statutes 2016, section 424A.01, is amended by adding a subdivision 
163.29 	to read:
163.30 		Subd. 5a.Volunteer emergency medical personnel. Volunteer emergency medical 
163.31 	personnel are eligible to be members of the applicable volunteer firefighters relief association 
164.1 	and to qualify for service pension or other benefit coverage of the relief association on the 
164.2 	same basis as fire department personnel who perform or supervise fire suppression or fire 
164.3 	prevention duties, if:
164.4 	(1) the fire department employs or otherwise uses the services of persons solely as 
164.5 	volunteer emergency medical personnel to perform emergency medical response duties or 
164.6 	supervise emergency medical response activities;
164.7 	(2) the bylaws of the relief association authorize the eligibility; and
164.8 	(3) the eligibility is approved by:
164.9 	(i) the municipality, if the fire department is a municipal department;
164.10 	(ii) the joint powers board, if the fire department is a joint powers entity; or
164.11 	(iii) the contracting municipality or municipalities, if the fire department is an independent 
164.12 	nonprofit firefighting corporation.

164.13 	EFFECTIVE DATE. This section is effective January 1, 2018, and applies to service 
164.14 	rendered on or after that date.

164.15 	Sec. 12. Minnesota Statutes 2016, section 424A.01, subdivision 6, is amended to read:
164.16 		Subd. 6.Return to active firefighting after break in service. (a) This subdivision 
164.17 	governs the service pension calculation requirements of a firefighter who returns to active 
164.18 	service after a break in service and applies to all breaks in service, except that the resumption 
164.19 	service requirements of this subdivision do not apply to leaves of absence made available 
164.20 	by federal statute, such as the Family Medical Leave Act, United States Code, title 29, 
164.21 	section 2691, and the Uniformed Services Employment and Reemployment Rights Act, 
164.22 	United States Code, title 38, section 4301, and do not apply to leaves of absence made 
164.23 	available by state statute, such as the Parental Leave Act, section 181.941; the Leave for 
164.24 	Organ Donation Act, section 181.9456; the Leave for Civil Air Patrol Service Act, section 
164.25 	181.946; the Leave for Immediate Family Members of Military Personnel Injured or Killed 
164.26 	in Active Service Act, section 181.947; or the Protection of Jurors' Employment Act, section 
164.27 	593.50.
164.28 	(b)(1) If a firefighter who has ceased to perform or supervise fire suppression and fire 
164.29 	prevention duties for at least 60 days resumes performing active firefighting with the fire 
164.30 	department associated with the relief association, if the bylaws of the relief association so 
164.31 	permit, the firefighter may again become an active member of the relief association. A 
165.1 	firefighter who returns to active service and membership is subject to the service pension 
165.2 	calculation requirements under this section.
165.3 	(2) A firefighter who has been granted an approved leave of absence not exceeding one 
165.4 	year by the fire department or by the relief association is exempt from the minimum period 
165.5 	of resumption service requirement of this section.
165.6 	(3) A person who has a break in service not exceeding one year but has not been granted 
165.7 	an approved leave of absence and who has not received a service pension or disability benefit 
165.8 	may be made exempt from the minimum period of resumption service requirement of this 
165.9 	section by the relief association bylaws.
165.10 	(4) If the bylaws so provide, a firefighter who returns to active relief association 
165.11 	membership under this paragraph may continue to collect a monthly service pension, 
165.12 	notwithstanding the service pension eligibility requirements under chapter 424A.
165.13 	(c) If a former firefighter who has received a service pension or disability benefit returns 
165.14 	to active relief association membership under paragraph (b), the firefighter may qualify for 
165.15 	the receipt of a service pension from the relief association for the resumption service period 
165.16 	if the firefighter meets the service requirements of section 424A.016, subdivision 3, or 
165.17 	424A.02, subdivision 2. No firefighter may be paid a service pension more than once for 
165.18 	the same period of service.
165.19 	(d) If a former firefighter who has not received a service pension or disability benefit 
165.20 	returns to active relief association membership under paragraph (b), the firefighter may 
165.21 	qualify for the receipt of a service pension from the relief association for the original and 
165.22 	resumption service periods if the firefighter meets the service requirements of section 
165.23 	424A.016, subdivision 3, or 424A.02, subdivision 2, based on the original and resumption 
165.24 	years of service credit.
165.25 	(e) A firefighter who returns to active lump-sum relief association membership under 
165.26 	paragraph (b) and who qualifies for a service pension under paragraph (c) must have, upon 
165.27 	a subsequent cessation of duties, any service pension for the resumption service period 
165.28 	calculated as a separate benefit. If a lump-sum service pension had been paid to the firefighter 
165.29 	upon the firefighter's previous cessation of duties, a second lump-sum service pension for 
165.30 	the resumption service period must be calculated by applying the service pension amount 
165.31 	in effect on the date of the firefighter's termination of the resumption service for all years 
165.32 	of the resumption service.
165.33 	(f) A firefighter who had not been paid a lump-sum service pension returns to active 
165.34 	relief association membership under paragraph (b), who did not meet the minimum period 
166.1 	of resumption service requirement specified in the relief association's bylaws, but who does 
166.2 	meet the minimum service requirement of section 424A.02, subdivision 2, based on the 
166.3 	firefighter's original and resumption years of active service, must have, upon a subsequent 
166.4 	cessation of duties, a service pension for the original and resumption service periods 
166.5 	calculated by applying the service pension amount in effect on the date of the firefighter's 
166.6 	termination of the resumption service, or, if the bylaws so provide, based on the service 
166.7 	pension amount in effect on the date of the firefighter's previous cessation of duties. The 
166.8 	service pension for a firefighter who returns to active lump-sum relief association membership 
166.9 	under this paragraph, but who had met the minimum period of resumption service requirement 
166.10 	specified in the relief association's bylaws, must be calculated by applying the service 
166.11 	pension amount in effect on the date of the firefighter's termination of the resumption service.
166.12 	(g) If a firefighter receiving a monthly benefit service pension returns to active monthly 
166.13 	benefit relief association membership under paragraph (b), and if the relief association 
166.14 	bylaws do not allow for the firefighter to continue collecting a monthly service pension, 
166.15 	any monthly benefit service pension payable to the firefighter is suspended as of the first 
166.16 	day of the month next following the date on which the firefighter returns to active 
166.17 	membership. If the firefighter was receiving a monthly benefit service pension, and qualifies 
166.18 	for a service pension under paragraph (c), the firefighter is entitled to an additional monthly 
166.19 	benefit service pension upon a subsequent cessation of duties calculated based on the 
166.20 	resumption service credit and the service pension accrual amount in effect on the date of 
166.21 	the termination of the resumption service. A suspended initial service pension resumes as 
166.22 	of the first of the month next following the termination of the resumption service. If the 
166.23 	firefighter was not receiving a monthly benefit service pension and meets the minimum 
166.24 	service requirement of section 424A.02, subdivision 2, a service pension must be calculated 
166.25 	by applying the service pension amount in effect on the date of the firefighter's termination 
166.26 	of the resumption service for all years of service credit.
166.27 	(h) A firefighter who was not receiving a monthly benefit service pension returns to 
166.28 	active relief association membership under paragraph (b), who did not meet the minimum 
166.29 	period of resumption service requirement specified in the relief association's bylaws, but 
166.30 	who does meet the minimum service requirement of section 424A.02, subdivision 2, based 
166.31 	on the firefighter's original and resumption years of active service, must have, upon a 
166.32 	subsequent cessation of duties, a service pension for the original and resumption service 
166.33 	periods calculated by applying the service pension amount in effect on the date of the 
166.34 	firefighter's termination of the resumption service, or, if the bylaws so provide, based on 
166.35 	the service pension amount in effect on the date of the firefighter's previous cessation of 
167.1 	duties. The service pension for a firefighter who returns to active relief association 
167.2 	membership under this paragraph, but who had met the minimum period of resumption 
167.3 	service requirement specified in the relief association's bylaws, must be calculated by 
167.4 	applying the service pension amount in effect on the date of the firefighter's termination of 
167.5 	the resumption service.
167.6 	(i) For defined contribution plans, a firefighter who returns to active relief association 
167.7 	membership under paragraph (b) and who qualifies for a service pension under paragraph 
167.8 	(c) or (d) must have, upon a subsequent cessation of duties, any service pension for the 
167.9 	resumption service period calculated as a separate benefit. If a service pension had been 
167.10 	paid to the firefighter upon the firefighter's previous cessation of duties, and if the firefighter 
167.11 	meets the minimum service requirement of section 424A.016, subdivision 3, based on the 
167.12 	resumption years of service, a second service pension for the resumption service period 
167.13 	must be calculated to include allocations credited to the firefighter's individual account 
167.14 	during the resumption period of service and deductions for administrative expenses, if 
167.15 	applicable.
167.16 	(j) For defined contribution plans, if a firefighter who had not been paid a service pension 
167.17 	returns to active relief association membership under paragraph (b), and who meets the 
167.18 	minimum service requirement of section 424A.016, subdivision 3, based on the firefighter's 
167.19 	original and resumption years of service, must have, upon a subsequent cessation of duties, 
167.20 	a service pension for the original and resumption service periods calculated to include 
167.21 	allocations credited to the firefighter's individual account during the original and resumption 
167.22 	periods of service and deductions for administrative expenses, if applicable, less any amounts 
167.23 	previously forfeited under section 424A.016, subdivision 4.

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

167.25 	Sec. 13. Minnesota Statutes 2016, section 424A.015, subdivision 1, is amended to read:
167.26 		Subdivision 1.Separation from active service; exception. (a) No service pension is 
167.27 	payable to a person while the person remains an active member of the respective fire 
167.28 	department, and a person who is receiving a service pension is not entitled to receive any 
167.29 	other benefits from the special fund of the relief association.
167.30 	(b) No relief association as defined in section 424A.001, subdivision 4, may pay a service 
167.31 	pension or disability benefit to a former member of the relief association if that person has 
167.32 	not separated from active service with the fire department to which the relief association is 
167.33 	directly associated, unless:
168.1 	(1) the person discontinues volunteer firefighter duties with the municipality or the 
168.2 	independent nonprofit firefighting corporation, whichever applies, fire department and 
168.3 	performs duties within the municipal fire department or corporation on a full-time basis;
168.4 	(2) the governing body of the municipality or, of the independent nonprofit firefighting 
168.5 	corporation, or of the joint powers entity has filed its determination with the board of trustees 
168.6 	of the relief association that the person's experience with and service to the fire department 
168.7 	in that person's full-time capacity would be difficult to replace; and
168.8 	(3) the bylaws of the relief association were amended to provide for the payment of a 
168.9 	service pension or disability benefit for such full-time employees.

168.10 	EFFECTIVE DATE. This section is effective January 1, 2018.

168.11 	Sec. 14. Minnesota Statutes 2016, section 424A.015, is amended by adding a subdivision 
168.12 	to read:
168.13 		Subd. 7.Combined service pensions. (a) A volunteer firefighter with credit for service 
168.14 	as an active firefighter in more than one volunteer firefighters relief association is entitled 
168.15 	to a prorated service pension from each relief association if:
168.16 	(1) the articles of incorporation or bylaws of the relief associations provide;
168.17 	(2) the applicable requirements of paragraphs (b) and (c) are met; and
168.18 	(3) the volunteer firefighter otherwise qualifies.
168.19 	(b) A volunteer firefighter receiving a prorated service pension under this subdivision 
168.20 	must have a total combined amount of service credit from the two or more relief associations 
168.21 	of ten years or more, unless the bylaws of every affected relief association specify less than 
168.22 	a ten-year service vesting requirement, in which case, the total amount of required service 
168.23 	credit is the longest service vesting requirement of the relief associations. The member must 
168.24 	have one year or more of service credit in each relief association. The prorated service 
168.25 	pension must be based on:
168.26 	(1) for defined benefit relief associations, the service pension amount in effect for the 
168.27 	relief association on the date on which active volunteer firefighting services covered by that 
168.28 	relief association terminate; and
168.29 	(2) for defined contribution relief associations, the member's individual account balance 
168.30 	on the date on which active volunteer firefighting services covered by that relief association 
168.31 	terminate.
169.1 	(c) To receive a prorated service pension under this subdivision, the firefighter must 
169.2 	become a member of the second or succeeding association and must give notice of 
169.3 	membership to the prior association within two years of the date of termination of active 
169.4 	service with the prior association. The second or subsequent relief association secretary 
169.5 	must certify the notice.

169.6 	EFFECTIVE DATE. This section is effective January 1, 2018.

169.7 	Sec. 15. Minnesota Statutes 2016, section 424A.016, subdivision 2, is amended to read:
169.8 		Subd. 2.Defined contribution service pension eligibility. (a) A relief association, 
169.9 	when its articles of incorporation or bylaws so provide, may pay out of the assets of its 
169.10 	special fund a defined contribution service pension to each of its members who:
169.11 	(1) separates from active service with the fire department;
169.12 	(2) reaches age 50;
169.13 	(3) completes at least five years of active service as an active member of the municipal
169.14 	fire department to which the relief association is associated;
169.15 	(4) completes at least five years of active membership with the relief association before 
169.16 	separation from active service; and
169.17 	(5) complies with any additional conditions as to age, service, and membership that are 
169.18 	prescribed by the bylaws of the relief association.
169.19 	(b) In the case of a member who has completed at least five years of active service as 
169.20 	an active member of the fire department to which the relief association is associated on the 
169.21 	date that the relief association is established and incorporated, the requirement that the 
169.22 	member complete at least five years of active membership with the relief association before 
169.23 	separation from active service may be waived by the board of trustees of the relief association 
169.24 	if the member completes at least five years of inactive membership with the relief association 
169.25 	before the date of the payment of the service pension. During the period of inactive 
169.26 	membership, the member is not entitled to receive any disability benefit coverage, is not 
169.27 	entitled to receive additional individual account allocation of fire state aid or municipal 
169.28 	contribution towards a service pension, and is considered to have the status of a person 
169.29 	entitled to a deferred service pension.
169.30 	(c) The service pension earned by a volunteer under this chapter and the articles of 
169.31 	incorporation and bylaws of the relief association may be paid whether or not the municipality 
170.1 	or independent nonprofit firefighting corporation to which the relief association is associated 
170.2 	qualifies for the receipt of fire state aid under chapter 69.

170.3 	EFFECTIVE DATE. This section is effective January 1, 2018.

170.4 	Sec. 16. Minnesota Statutes 2016, section 424A.02, subdivision 1, is amended to read:
170.5 		Subdivision 1.Authorization. (a) A defined benefit relief association, when its articles 
170.6 	of incorporation or bylaws so provide, may pay out of the assets of its special fund a defined 
170.7 	benefit service pension to each of its members who: (1) separates from active service with 
170.8 	the fire department; (2) reaches age 50; (3) completes at least five years of active service 
170.9 	as an active member of the municipal fire department to which the relief association is 
170.10 	associated; (4) completes at least five years of active membership with the relief association 
170.11 	before separation from active service; and (5) complies with any additional conditions as 
170.12 	to age, service, and membership that are prescribed by the bylaws of the relief association. 
170.13 	A service pension computed under this section may be prorated monthly for fractional years 
170.14 	of service as the bylaws or articles of incorporation of the relief association so provide. The 
170.15 	bylaws or articles of incorporation may define a "month," but the definition must require a 
170.16 	calendar month to have at least 16 days of active service. If the bylaws or articles of 
170.17 	incorporation do not define a "month," a "month" is a completed calendar month of active 
170.18 	service measured from the member's date of entry to the same date in the subsequent month. 
170.19 	The service pension earned by a volunteer firefighter under this chapter and the articles of 
170.20 	incorporation and bylaws of the volunteer firefighters relief association may be paid whether 
170.21 	or not the municipality or independent nonprofit firefighting corporation to which the relief 
170.22 	association is associated qualifies for the receipt of fire state aid under chapter 69.
170.23 	(b) In the case of a member who has completed at least five years of active service as 
170.24 	an active member of the fire department to which the relief association is associated on the 
170.25 	date that the relief association is established and incorporated, the requirement that the 
170.26 	member complete at least five years of active membership with the relief association before 
170.27 	separation from active service may be waived by the board of trustees of the relief association 
170.28 	if the member completes at least five years of inactive membership with the relief association 
170.29 	before the date of the payment of the service pension. During the period of inactive 
170.30 	membership, the member is not entitled to receive disability benefit coverage, is not entitled 
170.31 	to receive additional service credit towards computation of a service pension, and is 
170.32 	considered to have the status of a person entitled to a deferred service pension under 
170.33 	subdivision 7.
171.1 	(c) No municipality or, independent nonprofit firefighting corporation, or joint powers 
171.2 	entity may delegate the power to take final action in setting a service pension or ancillary 
171.3 	benefit amount or level to the board of trustees of the relief association or to approve in 
171.4 	advance a service pension or ancillary benefit amount or level equal to the maximum amount 
171.5 	or level that this chapter would allow rather than a specific dollar amount or level.

171.6 	EFFECTIVE DATE. This section is effective January 1, 2018.

171.7 	Sec. 17. Minnesota Statutes 2016, section 424A.02, subdivision 3, is amended to read:
171.8 		Subd. 3.Flexible service pension maximums. (a) Annually on or before August 1 as 
171.9 	part of the certification of the financial requirements and minimum municipal obligation 
171.10 	determined under section 424A.092, subdivision 4, or 424A.093, subdivision 5, as applicable, 
171.11 	the secretary or some other official of the relief association designated in the bylaws of each 
171.12 	defined benefit relief association shall calculate and certify to the governing body of the 
171.13 	applicable municipality the average amount of available financing per active covered 
171.14 	firefighter for the most recent three-year period. The amount of available financing includes 
171.15 	any amounts of fire state aid and police and firefighter retirement supplemental state aid 
171.16 	received or receivable by the relief association, any amounts of municipal contributions to 
171.17 	the relief association raised from levies on real estate or from other available revenue sources 
171.18 	exclusive of fire state aid, and one-tenth of the amount of assets in excess of the accrued 
171.19 	liabilities of the relief association calculated under section 424A.092, subdivision 2; 
171.20 	424A.093, subdivisions 2 and 4; or 424A.094, subdivision 2, if any.
171.21 	(b) The maximum service pension which the defined benefit relief association has 
171.22 	authority to provide for in its bylaws for payment to a member retiring after the calculation 
171.23 	date when the minimum age and service requirements specified in subdivision 1 are met 
171.24 	must be determined using the table in paragraph (c) or (d), whichever applies.
171.25 	(c) For a defined benefit relief association where the governing bylaws provide for a 
171.26 	monthly service pension to a retiring member, the maximum monthly service pension amount 
171.27 	per month for each year of service credited that may be provided for in the bylaws is the 
171.28 	greater of the service pension amount provided for in the bylaws on the date of the calculation 
171.29 	of the average amount of the available financing per active covered firefighter or the 
171.30 	maximum service pension figure corresponding to the average amount of available financing 
171.31 	per active covered firefighter:

171.32
171.33171.34	Minimum Average Amount of Available
Financing per Firefighter
	Maximum Service Pension Amount 
Payable per Month for Each Year of 
Service
	
171.35	$ ...
		$ .25
		
172.1	41
		.50
		
172.2	81
		1.00
		
172.3	122
		1.50
		
172.4	162
		2.00
		
172.5	203
		2.50
		
172.6	243
		3.00
		
172.7	284
		3.50
		
172.8	324
		4.00
		
172.9	365
		4.50
		
172.10	405
		5.00
		
172.11	486
		6.00
		
172.12	567
		7.00
		
172.13	648
		8.00
		
172.14	729
		9.00
		
172.15	810
		10.00
		
172.16	891
		11.00
		
172.17	972
		12.00
		
172.18	1053
		13.00
		
172.19	1134
		14.00
		
172.20	1215
		15.00
		
172.21	1296
		16.00
		
172.22	1377
		17.00
		
172.23	1458
		18.00
		
172.24	1539
		19.00
		
172.25	1620
		20.00
		
172.26	1701
		21.00
		
172.27	1782
		22.00
		
172.28	1823
		22.50
		
172.29	1863
		23.00
		
172.30	1944
		24.00
		
172.31	2025
		25.00
		
172.32	2106
		26.00
		
172.33	2187
		27.00
		
172.34	2268
		28.00
		
172.35	2349
		29.00
		
172.36	2430
		30.00
		
172.37	2511
		31.00
		
172.38	2592
		32.00
		
173.1	2673
		33.00
		
173.2	2754
		34.00
		
173.3	2834
		35.00
		
173.4	2916
		36.00
		
173.5	2997
		37.00
		
173.6	3078
		38.00
		
173.7	3159
		39.00
		
173.8	3240
		40.00
		
173.9	3321
		41.00
		
173.10	3402
		42.00
		
173.11	3483
		43.00
		
173.12	3564
		44.00
		
173.13	3645
		45.00
		
173.14	3726
		46.00
		
173.15	3807
		47.00
		
173.16	3888
		48.00
		
173.17	3969
		49.00
		
173.18	4050
		50.00
		
173.19	4131
		51.00
		
173.20	4212
		52.00
		
173.21	4293
		53.00
		
173.22	4374
		54.00
		
173.23	4455
		55.00
		
173.24	4536
		56.00
		
173.25	4617
		57.00
		
173.26	4698
		58.00
		
173.27	4779
		59.00
		
173.28	4860
		60.00
		
173.29	4941
		61.00
		
173.30	5022
		62.00
		
173.31	5103
		63.00
		
173.32	5184
		64.00
		
173.33	5265
		65.00
		
173.34	5346
		66.00
		
173.35	5427
		67.00
		
173.36	5508
		68.00
		
173.37	5589
		69.00
		
173.38	5670
		70.00
		
174.1	5751
		71.00
		
174.2	5832
		72.00
		
174.3	5913
		73.00
		
174.4	5994
		74.00
		
174.5	6075
		75.00
		
174.6	6156
		76.00
		
174.7	6237
		77.00
		
174.8	6318
		78.00
		
174.9	6399
		79.00
		
174.10	6480
		80.00
		
174.11	6561
		81.00
		
174.12	6642
		82.00
		
174.13	6723
		83.00
		
174.14	6804
		84.00
		
174.15	6885
		85.00
		
174.16	6966
		86.00
		
174.17	7047
		87.00
		
174.18	7128
		88.00
		
174.19	7209
		89.00
		
174.20	7290
		90.00
		
174.21	7371
		91.00
		
174.22	7452
		92.00
		
174.23	7533
		93.00
		
174.24	7614
		94.00
		
174.25	7695
		95.00
		
174.26	7776
		96.00
		
174.27	7857
		97.00
		
174.28	7938
		98.00
		
174.29	8019
		99.00
		
174.30	8100
		100.00
		
174.31	any amount in excess of
				
174.32	8100
		100.00
		
174.33 	(d) For a defined benefit relief association in which the governing bylaws provide for a 
174.34 	lump-sum service pension to a retiring member, the maximum lump-sum service pension 
174.35 	amount for each year of service credited that may be provided for in the bylaws is the greater 
174.36 	of the service pension amount provided for in the bylaws on the date of the calculation of 
174.37 	the average amount of the available financing per active covered firefighter or the maximum 
175.1 	service pension figure corresponding to the average amount of available financing per active 
175.2 	covered firefighter for the applicable specified period:

175.3
175.4	Minimum Average Amount of Available
Financing per Firefighter
	Maximum Lump-Sum Service Pension 
Amount Payable for Each Year of Service
	
175.5	$ ...
		$ 10
		
175.6	11
		20
		
175.7	16
		30
		
175.8	23
		40
		
175.9	27
		50
		
175.10	32
		60
		
175.11	43
		80
		
175.12	54
		100
		
175.13	65
		120
		
175.14	77
		140
		
175.15	86
		160
		
175.16	97
		180
		
175.17	108
		200
		
175.18	131
		240
		
175.19	151
		280
		
175.20	173
		320
		
175.21	194
		360
		
175.22	216
		400
		
175.23	239
		440
		
175.24	259
		480
		
175.25	281
		520
		
175.26	302
		560
		
175.27	324
		600
		
175.28	347
		640
		
175.29	367
		680
		
175.30	389
		720
		
175.31	410
		760
		
175.32	432
		800
		
175.33	486
		900
		
175.34	540
		1000
		
175.35	594
		1100
		
175.36	648
		1200
		
175.37	702
		1300
		
175.38	756
		1400
		
176.1	810
		1500
		
176.2	864
		1600
		
176.3	918
		1700
		
176.4	972
		1800
		
176.5	1026
		1900
		
176.6	1080
		2000
		
176.7	1134
		2100
		
176.8	1188
		2200
		
176.9	1242
		2300
		
176.10	1296
		2400
		
176.11	1350
		2500
		
176.12	1404
		2600
		
176.13	1458
		2700
		
176.14	1512
		2800
		
176.15	1566
		2900
		
176.16	1620
		3000
		
176.17	1672
		3100
		
176.18	1726
		3200
		
176.19	1753
		3250
		
176.20	1780
		3300
		
176.21	1820
		3375
		
176.22	1834
		3400
		
176.23	1888
		3500
		
176.24	1942
		3600
		
176.25	1996
		3700
		
176.26	2023
		3750
		
176.27	2050
		3800
		
176.28	2104
		3900
		
176.29	2158
		4000
		
176.30	2212
		4100
		
176.31	2265
		4200
		
176.32	2319
		4300
		
176.33	2373
		4400
		
176.34	2427
		4500
		
176.35	2481
		4600
		
176.36	2535
		4700
		
176.37	2589
		4800
		
176.38	2643
		4900
		
177.1	2697
		5000
		
177.2	2751
		5100
		
177.3	2805
		5200
		
177.4	2859
		5300
		
177.5	2913
		5400
		
177.6	2967
		5500
		
177.7	3021
		5600
		
177.8	3075
		5700
		
177.9	3129
		5800
		
177.10	3183
		5900
		
177.11	3237
		6000
		
177.12	3291
		6100
		
177.13	3345
		6200
		
177.14	3399
		6300
		
177.15	3453
		6400
		
177.16	3507
		6500
		
177.17	3561
		6600
		
177.18	3615
		6700
		
177.19	3669
		6800
		
177.20	3723
		6900
		
177.21	3777
		7000
		
177.22	3831
		7100
		
177.23	3885
		7200
		
177.24	3939
		7300
		
177.25	3993
		7400
		
177.26	4047
		7500
		
177.27	4101
		7600
		
177.28	4155
		7700
		
177.29	4209
		7800
		
177.30	4263
		7900
		
177.31	4317
		8000
		
177.32	4371
		8100
		
177.33	4425
		8200
		
177.34	4479
		8300
		
177.35	4533
		8400
		
177.36	4587
		8500
		
177.37	4641
		8600
		
177.38	4695
		8700
		
178.1	4749
		8800
		
178.2	4803
		8900
		
178.3	4857
		9000
		
178.4	4911
		9100
		
178.5	4965
		9200
		
178.6	5019
		9300
		
178.7	5073
		9400
		
178.8	5127
		9500
		
178.9	5181
		9600
		
178.10	5235
		9700
		
178.11	5289
		9800
		
178.12	5343
		9900
		
178.13	5397
		10,000
		
178.14
178.15	any amount in excess of
5451
		10,100
		
178.16	5397 5505
		10,000 10,200
		
178.17	5559
		10,300
		
178.18	5613
		10,400
		
178.19	5667
		10,500
		
178.20	5721
		10,600
		
178.21	5775
		10,700
		
178.22	5829
		10,800
		
178.23	5883
		10,900
		
178.24	5937
		11,000
		
178.25	5991
		11,100
		
178.26	6045
		11,200
		
178.27	6099
		11,300
		
178.28	6153
		11,400
		
178.29	6207
		11,500
		
178.30	6261
		11,600
		
178.31	6315
		11,700
		
178.32	6369
		11,800
		
178.33	6423
		11,900
		
178.34	6477
		12,000
		
178.35	6531
		12,100
		
178.36	6585
		12,200
		
178.37	6639
		12,300
		
178.38	6693
		12,400
		
179.1	6747
		12,500
		
179.2	6801
		12,600
		
179.3	6855
		12,700
		
179.4	6909
		12,800
		
179.5	6963
		12,900
		
179.6	7017
		13,000
		
179.7	7071
		13,100
		
179.8	7125
		13,200
		
179.9	7179
		13,300
		
179.10	7233
		13,400
		
179.11	7287
		13,500
		
179.12	7341
		13,600
		
179.13	7395
		13,700
		
179.14	7449
		13,800
		
179.15	7503
		13,900
		
179.16	7557
		14,000
		
179.17	7611
		14,100
		
179.18	7665
		14,200
		
179.19	7719
		14,300
		
179.20	7773
		14,400
		
179.21	7827
		14,500
		
179.22	7881
		14,600
		
179.23	7935
		14,700
		
179.24	7989
		14,800
		
179.25	8043
		14,900
		
179.26	8097
		15,000
		
179.27
179.28	any amount in excess of 
8097
		15,000
		
179.29 	(e) For a defined benefit relief association in which the governing bylaws provide for a 
179.30 	monthly benefit service pension as an alternative form of service pension payment to a 
179.31 	lump-sum service pension, the maximum service pension amount for each pension payment 
179.32 	type must be determined using the applicable table contained in this subdivision.
179.33 	(f) If a defined benefit relief association establishes a service pension in compliance 
179.34 	with the applicable maximum contained in paragraph (c) or (d) and the minimum average 
179.35 	amount of available financing per active covered firefighter is subsequently reduced because 
179.36 	of a reduction in fire state aid or because of an increase in the number of active firefighters, 
179.37 	the relief association may continue to provide the prior service pension amount specified 
180.1 	in its bylaws, but may not increase the service pension amount until the minimum average 
180.2 	amount of available financing per firefighter under the table in paragraph (c) or (d), whichever 
180.3 	applies, permits.
180.4 	(g) No defined benefit relief association is authorized to provide a service pension in an 
180.5 	amount greater than the largest applicable flexible service pension maximum amount even 
180.6 	if the amount of available financing per firefighter is greater than the financing amount 
180.7 	associated with the largest applicable flexible service pension maximum.
180.8 	(h) The method of calculating service pensions must be applied uniformly for all years 
180.9 	of active service. Credit must be given for all years of active service except for caps on 
180.10 	service credit if so provided in the bylaws of the relief association.

180.11 	EFFECTIVE DATE; LOCAL APPROVAL. (a) For relief associations other than the 
180.12 	Eden Prairie volunteer firefighters relief association, this section is effective January 1, 
180.13 	2018.
180.14 	(b) For the Eden Prairie volunteer firefighters relief association, this section is effective 
180.15 	the day after the city council of Eden Prairie and its chief clerical officer timely complete 
180.16 	their compliance with Minnesota Statutes, section 645.021, subdivisions 2 and 3, or January 
180.17 	1, 2018, whichever is earlier.

180.18 	Sec. 18. Minnesota Statutes 2016, section 424A.02, subdivision 3a, is amended to read:
180.19 		Subd. 3a.Penalty for paying pension greater than applicable maximum. (a) If a 
180.20 	defined benefit relief association pays a service pension greater than the maximum service 
180.21 	pension associated with the applicable average amount of available financing per active 
180.22 	covered firefighter under the table in subdivision 3, paragraph (c) or (d), whichever applies, 
180.23 	the maximum service pension under subdivision 3, paragraph (f), or the applicable maximum 
180.24 	service pension amount specified in subdivision 3, paragraph (g), whichever is less, the 
180.25 	state auditor shall:
180.26 	(1) disqualify the municipality or the independent nonprofit firefighting corporation 
180.27 	associated with the relief association from receiving fire state aid by making the appropriate 
180.28 	notification to the municipality and the commissioner of revenue, with the disqualification 
180.29 	applicable for the next apportionment and payment of fire state aid; and
180.30 	(2) order the treasurer of the applicable relief association to recover the amount of the 
180.31 	overpaid service pension or pensions from any retired firefighter who received an 
180.32 	overpayment.
181.1 	(b) Fire state aid amounts from disqualified municipalities for the period of 
181.2 	disqualifications under paragraph (a), clause (1), must be credited to the amount of fire 
181.3 	insurance premium tax proceeds available for the next subsequent fire state aid 
181.4 	apportionment.
181.5 	(c) The amount of any overpaid service pension recovered under paragraph (a), clause 
181.6 	(2), must be credited to the amount of fire insurance premium tax proceeds available for 
181.7 	the next subsequent fire state aid apportionment.
181.8 	(d) The determination of the state auditor that a relief association has paid a service 
181.9 	pension greater than the applicable maximum must be made on the basis of the information 
181.10 	filed by the relief association and the municipality with the state auditor under sections 
181.11 	69.011, subdivision 2, and 69.051, subdivision 1 or 1a, whichever applies, and any other 
181.12 	relevant information that comes to the attention of the state auditor. The determination of 
181.13 	the state auditor is final. An aggrieved municipality, relief association, or person may appeal 
181.14 	the determination under section 480A.06.
181.15 	(e) The state auditor may certify, upon learning that a relief association overpaid a service 
181.16 	pension based on an error in the maximum service pension calculation, the municipality or 
181.17 	independent nonprofit firefighting corporation associated with the relief association for fire 
181.18 	state aid if (1) there is evidence that the error occurred in good faith, and (2) the relief 
181.19 	association has initiated recovery of any overpayment amount. Notwithstanding paragraph 
181.20 	(c), all overpayments recovered under this paragraph must be credited to the relief 
181.21 	association's special fund.

181.22 	EFFECTIVE DATE. This section is effective January 1, 2018.

181.23 	Sec. 19. Minnesota Statutes 2016, section 424A.02, subdivision 7, is amended to read:
181.24 		Subd. 7.Deferred service pensions. (a) A member of a defined benefit relief association 
181.25 	is entitled to a deferred service pension if the member separates from active service and 
181.26 	membership and has completed the minimum service and membership requirements in 
181.27 	subdivision 1. The requirement that a member separate from active service and membership 
181.28 	is waived for persons who have discontinued their volunteer firefighter duties and who are 
181.29 	employed on a full-time basis under section 424A.015, subdivision 1.
181.30 	(b) The deferred service pension is payable when the former member reaches at least 
181.31 	age 50, or at least the minimum age specified in the bylaws governing the relief association 
181.32 	if that age is greater than age 50, and when the former member makes a valid written 
181.33 	application.
182.1 	(c) A defined benefit relief association that provides a lump-sum service pension governed 
182.2 	by subdivision 3 may, when its governing bylaws so provide, pay interest on the deferred 
182.3 	lump-sum service pension during the period of deferral. If provided for in the bylaws, interest 
182.4 	must be paid in one of the following manners:
182.5 	(1) at the investment performance rate actually earned on that portion of the assets if the 
182.6 	deferred benefit amount is invested by the relief association in a separate account established 
182.7 	and maintained by the relief association;
182.8 	(2) at the investment performance rate actually earned on that portion of the assets if the 
182.9 	deferred benefit amount is invested in a separate investment vehicle held by the relief 
182.10 	association; or
182.11 	(3) at an interest rate of up to five percent, compounded annually, as set by the board of 
182.12 	trustees.
182.13 	(d) Any change in the interest rate set by the board of trustees under paragraph (c), clause 
182.14 	(3), must be ratified by the governing body of the municipality or joint powers entity served 
182.15 	by the fire department to which the relief association is directly associated, or by the 
182.16 	independent nonprofit firefighting corporation, as applicable.
182.17 	(e) Interest under paragraph (c), clause (3), is payable beginning on the January 1 next 
182.18 	following the date on which the deferred service pension interest rate as set by the board of 
182.19 	trustees was ratified by the governing body of the municipality or joint powers entity served 
182.20 	by the fire department to which the relief association is directly associated, or by the 
182.21 	independent nonprofit firefighting corporation, as applicable.
182.22 	(f) Unless the bylaws of a relief association that has elected to pay interest or additional 
182.23 	investment performance on deferred lump-sum service pensions under paragraph (c) specifies 
182.24 	a different interest or additional investment performance method, including the interest or 
182.25 	additional investment performance period starting date and ending date, the interest or 
182.26 	additional investment performance on a deferred service pension is creditable as follows:
182.27 	(1) for a relief association that has elected to pay interest or additional investment 
182.28 	performance under paragraph (c), clause (1) or (3), beginning on the first day of the month 
182.29 	next following the date on which the member separates from active service and membership 
182.30 	and ending on the last day of the month immediately before the month in which the deferred 
182.31 	member commences receipt of the deferred service pension; or
182.32 	(2) for a relief association that has elected to pay interest or additional investment 
182.33 	performance under paragraph (c), clause (2), beginning on the date that the member separates 
183.1 	from active service and membership and ending on the date that the separate investment 
183.2 	vehicle is valued immediately before the date on which the deferred member commences 
183.3 	receipt of the deferred service pension.
183.4 	(g) For a deferred service pension that is transferred to a separate account established 
183.5 	and maintained by the relief association or separate investment vehicle held by the relief 
183.6 	association, the deferred member bears the full investment risk subsequent to transfer and 
183.7 	in calculating the accrued liability of the volunteer firefighters relief association that pays 
183.8 	a lump-sum service pension, the accrued liability for deferred service pensions is equal to 
183.9 	the separate relief association account balance or the fair market value of the separate 
183.10 	investment vehicle held by the relief association.

183.11 	EFFECTIVE DATE. This section is effective January 1, 2018.

183.12 	Sec. 20. Minnesota Statutes 2016, section 424A.04, subdivision 1, is amended to read:
183.13 		Subdivision 1.Membership. (a) A relief association that is directly associated with a 
183.14 	municipal fire department must be managed by a board of trustees consisting of nine 
183.15 	members. Six trustees must be elected from the membership of the relief association and 
183.16 	three trustees must be drawn from the officials of the municipalities served by the fire 
183.17 	department to which the relief association is directly associated. The bylaws of a relief 
183.18 	association which provides a monthly benefit service pension may provide that one of the 
183.19 	six trustees elected from the relief association membership may be a retired member receiving 
183.20 	a monthly pension who is elected by the membership of the relief association. The three 
183.21 	municipal trustees must be one elected municipal official and one elected or appointed 
183.22 	municipal official who are designated as municipal representatives by the municipal 
183.23 	governing board annually and the chief of the municipal fire department.
183.24 	(b) A relief association that is a subsidiary of an independent nonprofit firefighting 
183.25 	corporation must be managed by a board of trustees consisting of nine members. Six trustees 
183.26 	must be elected from the membership of the relief association, two trustees must be drawn 
183.27 	from the officials of the municipalities served by the fire department to which the relief 
183.28 	association is directly associated, and one trustee must be the fire chief serving with the 
183.29 	independent nonprofit firefighting corporation. The bylaws of a relief association may 
183.30 	provide that one of the six trustees elected from the relief association membership may be 
183.31 	a retired member receiving a monthly pension who is elected by the membership of the 
183.32 	relief association. The two municipal trustees must be elected or appointed municipal 
183.33 	officials, selected as follows:
184.1 	(1) if only one municipality contracts with the independent nonprofit firefighting 
184.2 	corporation, the municipal trustees must be two officials of the contracting municipality 
184.3 	who are designated annually by the governing body of the municipality; or
184.4 	(2) if two or more municipalities contract with the independent nonprofit corporation, 
184.5 	the municipal trustees must be one official from each of the two largest municipalities in 
184.6 	population who are designated annually by the governing bodies of the applicable 
184.7 	municipalities.
184.8 	(c) The municipal trustees for a relief association that is directly associated with a fire 
184.9 	department operated as or by a joint powers entity must be the fire chief of the fire department 
184.10 	and two trustees designated annually by the joint powers board. The municipal trustees for 
184.11 	a relief association that is directly associated with a fire department service area township 
184.12 	must be the fire chief of the fire department and two trustees designated by the township 
184.13 	board.
184.14 	(d) If a relief association lacks the municipal board members provided for in paragraph 
184.15 	(a), (b), or (c) because the fire department is not located in or associated with an organized
184.16 	a municipality, or joint powers entity, or township, the municipal board members must be 
184.17 	the fire chief of the fire department and two board members appointed from the fire 
184.18 	department service area by the board of commissioners of the applicable county.
184.19 	(e) The term of the appointed municipal board members is one year or until the person's 
184.20 	successor is qualified, whichever is later.
184.21 	(f) A municipal trustee under paragraph (a), (b), (c), or (d) has all the rights and duties 
184.22 	accorded to any other trustee, except the right to be an officer of the relief association board 
184.23 	of trustees.
184.24 	(g) A board must have at least three officers, who are a president, a secretary and a 
184.25 	treasurer. These officers must be elected from among the elected trustees by either the full 
184.26 	board of trustees or by the relief association membership, as specified in the bylaws. In no 
184.27 	event may any trustee hold more than one officer position at any one time. The terms of the 
184.28 	elected trustees and of the officers of the board must be specified in the bylaws of the relief 
184.29 	association, but may not exceed three years. If the term of the elected trustees exceeds one 
184.30 	year, the election of the various trustees elected from the membership must be staggered 
184.31 	on as equal a basis as is practicable.

184.32 	EFFECTIVE DATE. This section is effective January 1, 2018.

185.1 	Sec. 21. Minnesota Statutes 2016, section 424A.07, is amended to read:
185.2 	424A.07 NONPROFIT FIREFIGHTING CORPORATIONS; ESTABLISHMENT 
185.3 	OF RELIEF ASSOCIATIONS.
185.4 	Before paying any service pensions or retirement benefits under section 424A.02 or 
185.5 	before becoming entitled to receive any amounts of fire state aid upon transmittal from a 
185.6 	contracting municipality under section 69.031, subdivision 5, a an independent nonprofit 
185.7 	firefighting corporation shall establish a volunteer firefighters relief association governed 
185.8 	by this chapter.

185.9 	EFFECTIVE DATE. This section is effective January 1, 2018.

185.10 	Sec. 22. Minnesota Statutes 2016, section 424A.091, subdivision 3, is amended to read:
185.11 		Subd. 3.Remedy for noncompliance; determination. (a) A municipality in which 
185.12 	there exists a firefighters relief association as specified in subdivision 1 which does not 
185.13 	comply with the applicable provisions of sections 424A.091 to 424A.096 or the provisions 
185.14 	of any applicable special law relating to the funding or financing of the association does 
185.15 	not qualify initially to receive, and is not entitled subsequently to retain, fire state aid under 
185.16 	sections 69.011 to 69.051 until the reason for the disqualification specified by the state 
185.17 	auditor is remedied, whereupon the municipality or relief association, if otherwise qualified, 
185.18 	is entitled to again receive fire state aid for the year occurring immediately subsequent to 
185.19 	the year in which the disqualification is remedied.
185.20 	(b) The state auditor shall determine if a municipality to which a firefighters' relief 
185.21 	association is directly associated or a firefighters relief association fails to comply with the 
185.22 	provisions of sections 424A.091 to 424A.096 or the funding or financing provisions of any 
185.23 	applicable special law based upon the information contained in the annual financial report 
185.24 	of the firefighters relief association required under section 69.051, the actuarial valuation 
185.25 	of the relief association, if applicable, the relief association officers' financial requirements 
185.26 	of the relief association and minimum municipal obligation determination documentation 
185.27 	under section 424A.092, subdivisions 3 and 4; 424A.093, subdivisions 4 and 5; or 424A.094, 
185.28 	subdivision 2, if requested to be filed by the state auditor, the applicable municipal or 
185.29 	independent nonprofit firefighting corporation budget, if requested to be filed by the state 
185.30 	auditor, and any other relevant documents or reports obtained by the state auditor.
185.31 	(c) The municipality or independent nonprofit firefighting corporation and the associated 
185.32 	relief association are not eligible to receive or to retain fire state aid if:
186.1 	(1) the relief association fails to prepare or to file the financial report or financial 
186.2 	statement under section 69.051;
186.3 	(2) the relief association treasurer is not bonded in the manner and in the amount required 
186.4 	by section 69.051, subdivision 2;
186.5 	(3) the relief association officers fail to determine or improperly determine the accrued 
186.6 	liability and the annual accruing liability of the relief association under section 424A.092, 
186.7 	subdivisions 2, 2a, and 3, paragraph (c), clause (2), if applicable;
186.8 	(4) if applicable, the relief association officers fail to obtain and file a required actuarial 
186.9 	valuation or the officers file an actuarial valuation that does not contain the special fund 
186.10 	actuarial liability calculated under the entry age normal actuarial cost method, the special 
186.11 	fund current assets, the special fund unfunded actuarial accrued liability, the special fund 
186.12 	normal cost under the entry age normal actuarial cost method, the amortization requirement 
186.13 	for the special fund unfunded actuarial accrued liability by the applicable target date, a 
186.14 	summary of the applicable benefit plan, a summary of the membership of the relief 
186.15 	association, a summary of the actuarial assumptions used in preparing the valuation, and a 
186.16 	signed statement by the actuary attesting to its results and certifying to the qualifications of 
186.17 	the actuary as an approved actuary under section 356.215, subdivision 1, paragraph (c);
186.18 	(5) the municipality failed to provide a municipal contribution, or the independent 
186.19 	nonprofit firefighting corporation failed to provide a corporate contribution, in the amount 
186.20 	equal to the minimum municipal obligation if the relief association is governed under section 
186.21 	424A.092, or the amount necessary, when added to the fire state aid actually received in 
186.22 	the plan year in question, to at least equal in total the calculated annual financial requirements 
186.23 	of the special fund of the relief association if the relief association is governed under section 
186.24 	424A.093, and, if the municipal or corporate contribution is deficient, the municipality 
186.25 	failed to include the minimum municipal obligation certified under section 424A.092, 
186.26 	subdivision 3, or 424A.093, subdivision 5, in its budget and tax levy or the independent 
186.27 	nonprofit firefighting corporation failed to include the minimum corporate obligation certified 
186.28 	under section 424A.094, subdivision 2, in the corporate budget;
186.29 	(6) the defined benefit relief association did not receive municipal ratification for the 
186.30 	most recent plan amendment when municipal ratification was required under section 424A.02, 
186.31 	subdivision 10; 424A.092, subdivision 6; or 424A.093, subdivision 6;
186.32 	(7) the relief association invested special fund assets in an investment security that is 
186.33 	not authorized under section 424A.095;
187.1 	(8) the relief association had an administrative expense that is not authorized under 
187.2 	section 69.80 or 424A.05, subdivision 3, or the municipality had an expenditure that is not 
187.3 	authorized under section 424A.08;
187.4 	(9) the relief association officers fail to provide a complete and accurate public pension 
187.5 	plan investment portfolio and performance disclosure under section 356.219;
187.6 	(10) the relief association fails to obtain the acknowledgment from a broker of the 
187.7 	statement of investment restrictions under section 356A.06, subdivision 8b;
187.8 	(11) the relief association officers permitted to occur a prohibited transaction under 
187.9 	section 356A.06, subdivision 9, or 424A.04, subdivision 2a, or failed to undertake correction 
187.10 	of a prohibited transaction that did occur; or
187.11 	(12) the relief association pays a defined benefit service pension in an amount that is in 
187.12 	excess of the applicable service pension maximum under section 424A.02, subdivision 3.

187.13 	EFFECTIVE DATE. This section is effective January 1, 2018.

187.14 	Sec. 23. Minnesota Statutes 2016, section 424A.094, subdivision 3, is amended to read:
187.15 		Subd. 3.Authorized pension disbursements. Authorized disbursements of assets of 
187.16 	the special fund of the subsidiary relief association of the independent nonprofit firefighting 
187.17 	corporation shall be governed by the provisions of section 424A.05.

187.18 	EFFECTIVE DATE. This section is effective January 1, 2018.

187.19 	Sec. 24. Minnesota Statutes 2016, section 424A.10, subdivision 1, is amended to read:
187.20 		Subdivision 1. Definitions. For purposes of this section:
187.21 	(1) "qualified recipient" means an individuala volunteer firefighter who receives a 
187.22 	lump-sum distribution of pension or retirement benefits from a volunteer firefighters relief 
187.23 	association or from the voluntary statewide lump-sum volunteer firefighter retirement plan
187.24 	for service that the individual has performed as a volunteer firefighter;
187.25 	(2) "survivor of a deceased active or deferred volunteer firefighter" means the surviving 
187.26 	spouse of a deceased active or deferred volunteer firefighter or, if none, the surviving child 
187.27 	or children of a deceased active or deferred volunteer firefighter;
187.28 	(3) "active volunteer firefighter" means a person who:
187.29 	(i) regularly renders fire suppression service, the performance or supervision of authorized 
187.30 	fire prevention duties, or the performance or supervision of authorized emergency medical 
188.1 	response activities  for a municipal fire department or an independent nonprofit firefighting 
188.2 	corporation, who;
188.3 	(ii) has met the statutory and other requirements for relief association membership,; and 
188.4 	who
188.5 	(iii) is deemed by the relief association under law and its bylaws to be a fully qualified 
188.6 	member of the relief association or from the voluntary statewide lump-sum volunteer 
188.7 	firefighter retirement plan for at least one month; and
188.8 	(4) "deferred volunteer firefighter" means a former active volunteer firefighter who:
188.9 	(i) terminated active firefighting service, the performance or supervision of authorized 
188.10 	fire prevention duties, or the performance or supervision of authorized emergency medical 
188.11 	response activities; and
188.12 	(ii) has sufficient service credit from the applicable relief association or from the voluntary 
188.13 	statewide lump-sum volunteer firefighter retirement plan to be entitled to a service pension 
188.14 	under the bylaws of the relief association, but has not applied for or has not received the 
188.15 	service pension.; and
188.16 	(5) "volunteer firefighter" includes an individual whose services were utilized to perform 
188.17 	or supervise fire prevention duties if authorized under section 424A.01, subdivision 5, and 
188.18 	individuals whose services were used to perform emergency medical response duties or 
188.19 	supervise emergency medical response activities if authorized under section 424A.01, 
188.20 	subdivision 5a.

188.21 	EFFECTIVE DATE. This section is effective January 1, 2018.

188.22 	Sec. 25. Minnesota Statutes 2016, section 424B.20, subdivision 4, is amended to read:
188.23 		Subd. 4.Benefit trust fund establishment. (a) After the settlement of nonbenefit legal 
188.24 	obligations of the special fund of the volunteer firefighters relief association under subdivision 
188.25 	3, the board of the relief association shall transfer the remaining assets of the special fund, 
188.26 	as securities or in cash, as applicable, to the chief financial official of the municipality in 
188.27 	which the associated fire department was located if the fire department was a municipal fire 
188.28 	department or to the chief financial official of the municipality with the largest population 
188.29 	served by the fire department if the fire department was an independent nonprofit firefighting 
188.30 	corporation. If the fire department was a joint powers entity, the remaining assets of the 
188.31 	special fund shall be transferred to the chief financial official of the municipality designated 
188.32 	as the fiscal agent in the joint powers agreement or, if the agreement does not designate a 
188.33 	municipality as the fiscal agent, the remaining assets of the special fund shall be transferred 
189.1 	to the chief financial official of the municipality with the largest population served by the 
189.2 	joint powers fire department. The board shall also compile a schedule of the relief association 
189.3 	members to whom a service pension is or will be owed, any beneficiary to whom a benefit 
189.4 	is owed, the amount of the service pension or benefit payable based on the applicable bylaws 
189.5 	and state law and the service rendered to the date of the dissolution, and the date on which 
189.6 	the pension or benefit would first be payable under the bylaws of the relief association and 
189.7 	state law.
189.8 	(b) The municipality in which is locatedreceiving the remaining assets of the special 
189.9 	fund of a volunteer firefighters relief association that is dissolving under this section shall 
189.10 	establish a separate account in the municipal treasury which must function as a trust fund 
189.11 	for members of the volunteer firefighters relief association and their beneficiaries to whom 
189.12 	the volunteer firefighters relief association owes a service pension or other benefit under 
189.13 	the bylaws of the relief association and state law. Upon proper application, on or after the 
189.14 	initial date on which the service pension or benefit is payable, the municipal treasurer shall 
189.15 	pay the pension or benefit due, based on the schedule prepared under paragraph (a) and the 
189.16 	other records of the dissolved relief association. The trust fund under this section must be 
189.17 	invested and managed consistent with chapter 356A and section 424A.095. Upon payment 
189.18 	of the last service pension or benefit due and owing, any remaining assets in the trust fund 
189.19 	cancel to the general fund of the municipality.or, if the fire department was a joint powers 
189.20 	entity, any remaining assets in the trust fund cancel to the general fund of each municipality 
189.21 	that was a contracting party to the joint powers agreement as specified in the joint powers 
189.22 	agreement. If the joint powers agreement does not specify how the remaining assets are to 
189.23 	be distributed among the contracting parties, each of the contracting parties shall receive a 
189.24 	pro rata share of the remaining assets based on the proportion of total operating contributions 
189.25 	each contracting municipality made to the joint powers entity over the most recent ten 
189.26 	calendar years. If the special fund of the volunteer firefighters relief association had an 
189.27 	unfunded actuarial accrued liability upon dissolution, the municipality is liable for that 
189.28 	unfunded actuarial accrued liability. If the fire department was a joint powers entity, the 
189.29 	contracting municipalities are liable for their share of the unfunded actuarial accrued liability 
189.30 	as specified in the joint powers agreement. If the joint powers agreement does not specify 
189.31 	liability for any unfunded actuarial accrued liability, the contracting municipalities are liable 
189.32 	for their pro rata share of the unfunded actuarial accrued liability based on the proportion 
189.33 	of total operating contributions each contracting municipality made to the joint powers 
189.34 	entity over the most recent ten calendar years.

189.35 	EFFECTIVE DATE. This section is effective January 1, 2018.

190.1 	Sec. 26. EDEN PRAIRIE VOLUNTEER FIREFIGHTERS RELIEF ASSOCIATION 
190.2 	SERVICE PENSIONS; RETURN TO ACTIVE SERVICE.
 190.3 	(a) Notwithstanding any provision of Minnesota Statutes, section 424A.01, subdivision 
190.4 	6, section 424A.02, subdivision 2, or any other provision of law to the contrary, if the bylaws 
190.5 	of the Eden Prairie volunteer firefighters relief association so provide, a former firefighter 
190.6 	who has received a lump-sum service pension or is receiving a monthly benefit service 
190.7 	pension and returns to active relief association membership under Minnesota Statutes, 
190.8 	section 424A.01, subdivision 6, paragraph (b), is entitled to receive an unreduced lump-sum 
190.9 	service pension for the resumption service period if the firefighter completes at least three 
190.10 	years of active service as an active member of the fire department during the resumption 
190.11 	service period and completes at least three years of active membership with the relief 
190.12 	association during the resumption service period.
190.13 	(b) A lump-sum service pension must be calculated by applying the service pension 
190.14 	amount in effect on the date of the firefighter's termination of the resumption service for all 
190.15 	years of the resumption service. No firefighter may be paid a service pension more than 
190.16 	once for the same period of service. Payment of a lump-sum service pension shall have no 
190.17 	effect on the firefighter's previous service pension.

190.18 	EFFECTIVE DATE. This section is effective the day after the Eden Prairie City Council 
190.19 	and its chief clerical officer timely complete their compliance with Minnesota Statutes, 
190.20 	section 645.021, subdivisions 2 and 3.

190.21 	Sec. 27. CITY OF AUSTIN; ALLOCATION OF FIRE STATE AID FOR 
190.22 	FIREFIGHTERS.
 190.23 	(a) Notwithstanding any law to the contrary, the city of Austin must annually:
190.24 	(1) determine the amount of state aid required under the bylaws of the Austin Parttime 
190.25 	Firefighters Relief Association to fund the volunteer firefighters' service pensions;
190.26 	(2) transmit to the Austin Parttime Firefighters Relief Association any supplemental 
190.27 	state aid received under Minnesota Statutes, section 423A.022;
190.28 	(3) transmit to the Austin Parttime Firefighters Relief Association an amount of fire 
190.29 	state aid under Minnesota Statutes, sections 69.011 to 69.051, equal to the difference between 
190.30 	the amount determined under clause (1) and the amount transmitted under clause (2); and
190.31 	(4) transmit the remaining balance of fire state aid under Minnesota Statutes, sections 
190.32 	69.011 to 69.051, for the payment of the employer contribution requirements for firefighters 
191.1 	covered by the public employees police and fire retirement plan under Minnesota Statutes, 
191.2 	section 353.65, subdivision 3.
191.3 	(b) Notwithstanding Minnesota Statutes, section 69.031, subdivision 5, the city of Austin 
191.4 	has no liability to the relief association related to payments it made or will make to the 
191.5 	public employees police and fire retirement plan from fire state aid for 2013, 2014, 2015, 
191.6 	2016, and 2017.
191.7 	(c) This section expires July 1, 2018.

191.8 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
191.9 	city of Austin and its chief clerical officer comply with Minnesota Statutes, section 645.021, 
191.10 	subdivisions 2 and 3, and applies retroactively from January 1, 2013.

191.11 	Sec. 28. FIRE STATE AID WORK GROUP.
 191.12 	(a) The executive director of the Public Employees Retirement Association shall convene 
191.13 	a Fire State Aid Work Group to study and make recommendations to the Legislative 
191.14 	Commission on Pensions and Retirement on:
191.15 	(1) the current requirement that all fire state aid provided to municipalities with 
191.16 	firefighters as defined in Minnesota Statutes, section 424A.001, subdivision 10, or 353G.01, 
191.17 	subdivision 15, must be used to fund service pensions governed by Minnesota Statutes, 
191.18 	chapter 424A or 353G; and
191.19 	(2) modifying the requirement to allow municipalities to allocate a portion of fire state 
191.20 	aid to pay employer contributions on behalf of firefighters covered by the public employees 
191.21 	police and fire retirement plan under Minnesota Statutes, section 353.65, subdivision 3.
191.22 	(b) In making recommendations with information provided by Public Employees 
191.23 	Retirement Association and Legislative Commission on Pensions and Retirement staff, the 
191.24 	work group shall consider:
191.25 	(1) the history and purpose of fire state aid;
191.26 	(2) the history, purpose, and utilization of Minnesota Statutes 2012, section 353A.10, 
191.27 	subdivision 6, which allowed certain municipalities to allocate a portion of fire state aid to 
191.28 	pay public employees police and fire employer contributions;
191.29 	(3) the impact on current volunteer firefighters, volunteer firefighter recruitment and 
191.30 	retention, and municipalities if fire state aid is allocated between service pensions and public 
191.31 	employees police and fire employer contributions; and
192.1 	(4) a presentation by a city of Austin official and a representative from the Austin 
192.2 	Part-Time Firefighters Relief Association on the city of Austin's current allocation of fire 
192.3 	state aid.
192.4 	(c) Members of the work group shall include:
192.5 	(1) two representatives of Minnesota cities, appointed by the League of Minnesota Cities;
192.6 	(2) two representatives of Minnesota fire chiefs, who are fire chiefs from fire departments 
192.7 	with both volunteer firefighters covered by either a volunteer firefighter relief association 
192.8 	governed by Minnesota Statutes, chapter 424A, or the voluntary statewide volunteer 
192.9 	firefighter retirement plan governed by Minnesota Statutes, chapter 353G, and firefighters 
192.10 	covered by the public employees police and fire retirement plan governed by Minnesota 
192.11 	Statutes, section 353.64, appointed by the Minnesota State Fire Chiefs Association;
192.12 	(3) two representatives of Minnesota volunteer firefighters, who are active volunteer 
192.13 	firefighters, appointed by the Minnesota State Fire Departments Association;
192.14 	(4) one representative of the Office of the State Auditor, designated by the state auditor; 
192.15 	and
192.16 	(5) one representative of the Department of Revenue, designated by the commissioner 
192.17 	of revenue.
192.18 	(d) The work group shall elect a chair from among its members.
192.19 	(e) The work group shall submit a report by December 31, 2017, that contains the work 
192.20 	group's recommendations to the chair, vice-chair, and executive director of the Legislative 
192.21 	Commission on Pensions and Retirement. The report shall include recommendations 
192.22 	regarding:
192.23 	(1) municipalities allocating a portion of fire state aid to pay employer contributions to 
192.24 	the public employees police and fire retirement plan;
192.25 	(2) implementation of policies if fire state aid is divided, including the determination 
192.26 	of:
192.27 	(i) the entities that will decide how the fire state aid is allocated;
192.28 	(ii) how the allocation will be documented;
192.29 	(iii) how the allocation may be amended, if at all;
192.30 	(iv) what entity allocates the fire state aid; and
192.31 	(v) whether a government agency must monitor and enforce the allocation;
193.1 	(3) the scope of allowable allocations of fire state aid; and
193.2 	(4) other issues the work group determines are relevant.
193.3 	(e) The work group expires the day following the last day of the 2018 legislative session.

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

193.5 	Sec. 29.  REPEALER.
 193.6 	Minnesota Statutes 2016, section 424A.02, subdivision 13, is repealed.

193.7 	EFFECTIVE DATE. This section is effective January 1, 2018.

193.8 	ARTICLE 16
193.9 	MSRS-ADMINISTERED RETIREMENT PLAN MODIFICATIONS

193.10 	Section 1. Minnesota Statutes 2016, section 352.113, subdivision 2, is amended to read:
193.11 		Subd. 2.Application; accrual of benefits. (a) An employee making claim for a total 
193.12 	and permanent disability benefit, or someone acting on behalf of the employee upon proof 
193.13 	of authority satisfactory to the director, shall file a written application for benefits in the 
193.14 	office of the system on or before the deadline specified in subdivision 4, paragraph (g).
193.15 	(b) The application must be in a form and manner prescribed by the executive director.
193.16 	(c) The benefit shall begin to accrue the day following the start of disability or the day 
193.17 	following the last day paid, whichever is later, but not earlier than 180 days before the date 
193.18 	the application is filed with the director.

193.19 	EFFECTIVE DATE. This section is effective July 1, 2017.

193.20 	Sec. 2. Minnesota Statutes 2016, section 352.91, subdivision 3f, is amended to read:
193.21 		Subd. 3f.Additional Department of Human Services personnel. (a) "Covered 
193.22 	correctional service" means service by a state employee in one of the employment positions 
193.23 	specified in paragraph (b) in the state-operated forensic services program or the Minnesota 
193.24 	sex offender program if at least 75 percent of the employee's working time is spent in direct 
193.25 	contact with patients and the determination of this direct contact is certified to the executive 
193.26 	director by the commissioner of human services.
193.27 	(b) The employment positions are:
193.28 	(1) behavior analyst 2;
193.29 	(2) behavior analyst 3;
194.1 	(3) certified occupational therapy assistant 1;
194.2 	(4) certified occupational therapy assistant 2;
194.3 	(5) chemical dependency counselor senior;
194.4 	(6) client advocate;
194.5 	(7) clinical program therapist 2;
194.6 	(8) clinical program therapist 3;
194.7 	(9) clinical program therapist 4;
194.8 	(10) customer services specialist principal;
194.9 	(11) dental assistant registered;
194.10 	(12) group supervisor;
194.11 	(13) group supervisor assistant;
194.12 	(14) human services support specialist;
194.13 	(15) licensed alcohol and drug counselor;
194.14 	(16) licensed practical nurse;
194.15 	(17) management analyst 3;
194.16 	(18) occupational therapist;
194.17 	(19) occupational therapist, senior;
194.18 	(20) physical therapist;
194.19 	(20)(21) psychologist 1;
194.20 	(21)(22) psychologist 2;
194.21 	(22)(23) psychologist 3;
194.22 	(23)(24) recreation program assistant;
194.23 	(24)(25) recreation therapist lead;
194.24 	(25)(26) recreation therapist senior;
194.25 	(26)(27) rehabilitation counselor senior;
194.26 	(27)(28) security supervisor;
194.27 	(28)(29) skills development specialist;
195.1 	(29)(30) social worker senior;
195.2 	(30)(31) social worker specialist;
195.3 	(31)(32) social worker specialist, senior;
195.4 	(32)(33) special education program assistant;
195.5 	(33)(34) speech pathology clinician;
195.6 	(34)(35) work therapy assistant; and
195.7 	(35)(36) work therapy program coordinator.

195.8 	EFFECTIVE DATE. This section is effective on the first day of the first payroll period 
195.9 	occurring after the date of enactment and applies to prospective service only.

195.10 	Sec. 3. Minnesota Statutes 2016, section 352.91, subdivision 3g, is amended to read:
195.11 		Subd. 3g.Additional Corrections Department personnel. (a) "Covered correctional 
195.12 	service" means service by a state employee in one of the employment positions specified 
195.13 	in paragraph (b) if at least 75 percent of the employee's working time is spent in direct 
195.14 	contact with inmates and the determination of this direct contact is certified to the executive 
195.15 	director by the commissioner of corrections.
195.16 	(b) The qualifying employment positions are:
195.17 	(1) corrections discipline unit supervisor;
195.18 	(2) dental assistant registered;
195.19 	(3) dental hygienist;
195.20 	(4) food service supervisor;
195.21 	(5) medical assistant, certified;
195.22 	(6) psychologist 2; and
195.23 	(5)(7) sentencing to service crew leader involved with the inmate community work 
195.24 	crew program.

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

196.1 	Sec. 4. Minnesota Statutes 2016, section 352.91, is amended by adding a subdivision to 
196.2 	read:
196.3 		Subd. 4c.Department of Human Services; procedure for coverage change 
196.4 	considerations. (a) The commissioner of human services shall appoint a standing review 
196.5 	committee to review and determine classifications or positions that may be included in 
196.6 	legislative requests for correctional state employees retirement plan coverage under 
196.7 	subdivision 4a.
196.8 	(b) The department's human resources director shall convene a meeting of the review 
196.9 	committee only at the request of a labor organization or a member of the department's 
196.10 	management team.
196.11 	(c) The review committee must review all requests and the supporting documentation 
196.12 	for coverage by the correctional state employees retirement plan and must make a 
196.13 	recommendation to the commissioner regarding which classifications or positions meet the 
196.14 	statutory requirements for coverage. The review committee must also make a 
196.15 	recommendation to the commissioner regarding classifications or positions that no longer 
196.16 	meet the statutory requirement for coverage by the correctional state employees retirement 
196.17 	plan and removal of the classification or position from the applicable statute.
196.18 	(d) The department's human resources director must provide a notice of each 
196.19 	determination and of the employee's right to appeal the determination. Appeals must be 
196.20 	filed with the department's human resources director within 30 days of the date of the notice 
196.21 	of determination.
196.22 	(e) The commissioner of human services shall review appeals of determinations for 
196.23 	coverage. The commissioner's determinations are final.
196.24 	(f) All classifications or positions recommended by the review committee for inclusion 
196.25 	in or exclusion from the correctional state employees retirement plan must be forwarded to 
196.26 	the commissioner of human services for the preparation of legislation to implement the 
196.27 	coverage change and submission. If the commissioner determines that the employment 
196.28 	position is appropriate for inclusion in or exclusion from the correctional state employees 
196.29 	retirement plan, the commissioner shall submit a written recommendation documenting 
196.30 	classifications or positions that should or should not be covered by the correctional state 
196.31 	employees retirement plan. The department's human resources director must retain the 
196.32 	documentation of each request and the final determination.

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

197.1 	Sec. 5. Minnesota Statutes 2016, section 352D.06, subdivision 1, is amended to read:
197.2 		Subdivision 1.Annuity; reserves. When a participant attains at least age 55, terminates 
197.3 	from covered service, and applies for a retirement annuity, the cash value of the participant's 
197.4 	shares must be transferred to the general state employees retirement fund and must be used 
197.5 	to provide an annuity for the retired employeeparticipant based upon the participant's age 
197.6 	when the benefit begins to accrue according to the reserve basis used by the general state 
197.7 	employees retirement plan in determining pensions and reserves.
197.8 	(a) Except for participants described in paragraph (b), the monthly amount of the annuity 
197.9 	must be determined using the actuarial assumptions in effect for the general state employees 
197.10 	retirement plan under section 356.215 on the accrual date.
197.11 	(b) For any participant who retires on or after July 1, 2017, and before July 1, 2020, 
197.12 	when the participant is at least age 63 or has had at least 26 years of covered service, the 
197.13 	monthly amount of the annuity must be determined using the actuarial assumptions in effect 
197.14 	for the general state employees retirement plan under section 356.215 on June 30, 2016.
197.15 		Subd. 1a.Postretirement adjustments. The annuity under this subdivision 1 is eligible 
197.16 	for postretirement adjustments under section 356.415.

197.17 	EFFECTIVE DATE. This section is effective July 1, 2017.

197.18 	Sec. 6. Minnesota Statutes 2016, section 352F.04, subdivision 1, is amended to read:
197.19 		Subdivision 1.Enhanced augmentation rates. (a) The deferred annuity of a terminated 
197.20 	hospital employee who attained that status before June 2, 2006, is subject to augmentation 
197.21 	under Minnesota Statutes 1994, section 352.72, subdivision 2, except that the rate of 
197.22 	augmentation is 5.5 percent compounded annually untilto be applied each January 1 is the 
197.23 	following the year in which the person attains age 55.:

197.24		January 1, 2018
	4.5 percent
	
197.25		January 1, 2019
	3.75 percent
	
197.26		January 1, 2020
	3.0 percent
	
197.27		January 1, 2021
	2.25 percent
	
197.28		January 1, 2022
	1.5 percent
	
197.29		January 1, 2023
	0.75 percent
	
197.30		After December 31, 2023, the deferred annuity must not be augmented.
	
197.31 	Augmentation for each year is effective as of January 1 of that year.
197.32 	From that date to the effective date of retirement, the augmentation rate is 7.5 percent 
197.33 	compounded annually.
198.1 	(b) If a terminated hospital employee attained that status on or after June 2, 2006, the 
198.2 	augmentation rate is four percent compounded annually until January 1, following the year 
198.3 	in which the person attains age 55. From that date to the effective date of retirement, the 
198.4 	augmentation rate is six percent compounded annually.

198.5 	Sec. 7. Minnesota Statutes 2016, section 352F.04, subdivision 2, is amended to read:
198.6 		Subd. 2.Exceptions Exception. The increasedenhanced augmentation rates specified 
198.7 	in subdivision 1 do not apply if the terminated hospital employee:
198.8 	(1) becomes covered again by a retirement plan enumerated in section 356.30, subdivision 
198.9 	3; or
198.10 	(2) begins receipt of a retirement annuity under chapter 352 before age 62 while employed 
198.11 	by the employer which assumed operations of the medical facility or other public employing 
198.12 	unit or purchased the medical facility or other public employing unit.

198.13 	EFFECTIVE DATE. This section is effective retroactively from July 1, 2015.

198.14 	Sec. 8. Minnesota Statutes 2016, section 352F.04, is amended by adding a subdivision to 
198.15 	read:
198.16 		Subd. 3.Return to covered employment. (a) If a terminated hospital employee becomes 
198.17 	covered by a retirement plan enumerated in section 356.30, subdivision 3, the employee 
198.18 	shall be entitled to whichever of the following annuities produces the highest monthly 
198.19 	payment:
198.20 	(1) the deferred annuity and augmentation to which the employee would have been 
198.21 	entitled under subdivision 1 reduced by the dollar amount of any annuity earned under any 
198.22 	enumerated retirement plan after the effective date defined in section 352F.02, subdivision 
198.23 	3;
198.24 	(2) a combined service annuity calculated under section 356.30; or
198.25 	(3) an annuity calculated under section 352.72 for coverage by more than one retirement 
198.26 	system using the augmentation rates set forth in section 352.72, subdivision 2, paragraph 
198.27 	(a).
198.28 	(b) This subdivision applies to any terminated hospital employee who begins to receive 
198.29 	a retirement annuity under chapter 352 on or after July 1, 2015.

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

199.1 	Sec. 9. ANNUITY ADJUSTMENT.
 199.2 	Under Minnesota Statutes, section 352F.04, subdivision 3, if any terminated hospital 
199.3 	employee began to receive a retirement annuity under Minnesota Statutes, chapter 352, as 
199.4 	adjusted under Minnesota Statutes, chapter 352F, on or after July 1, 2015, but prior to the 
199.5 	effective date of this section, the terminated hospital employee's annuity must be recalculated 
199.6 	under Minnesota Statutes, section 352F.04, subdivision 3, and, if the monthly amount as 
199.7 	recalculated exceeds the monthly amount being received by the terminated hospital employee, 
199.8 	the Minnesota State Retirement System shall:
199.9 	(1) begin paying the recalculated monthly amount as of the first payment date after the 
199.10 	effective date of this section; and
199.11 	(2) pay the sum of the difference between the amount the terminated hospital employee 
199.12 	received each month since commencement of the annuity and the amount the terminated 
199.13 	hospital employee would have received under Minnesota Statutes, section 352F.04, 
199.14 	subdivision 3, for that month. The sum of the difference each month shall be paid in a lump 
199.15 	sum to the terminated hospital employee along with the first payment of the recalculated 
199.16 	amount under clause (1).

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

199.18 	Sec. 10. COVERAGE TRANSFER DATES.
 199.19 	(a) The coverage transfer under Minnesota Statutes, section 352.91, subdivision 3g, 
199.20 	paragraph (b), clause (4), also covers employment in that position on or after April 18, 2016, 
199.21 	for purposes of Minnesota Statutes, section 352.955, subdivisions 1, 3, 4, 5, and 6.
199.22 	(b) The coverage change under Minnesota Statutes, section 352.91, subdivision 3g, 
199.23 	paragraph (b), clause (5), is prospective only.

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

199.25 	ARTICLE 17
199.26 	PERA-ADMINISTERED RETIREMENT PLAN MODIFICATIONS

199.27 	Section 1. Minnesota Statutes 2016, section 353.01, subdivision 43, is amended to read:
199.28 		Subd. 43.Line of duty death. "Line of duty death" means:
199.29 	(1) a death that occurs while performing or as a direct result of performing normal or 
199.30 	less frequent duties which are specific to protecting the property and personal safety of 
200.1 	others and that present inherent dangers that are specific to the positions covered by the 
200.2 	public employees police and fire plan.; or
200.3 	(2) a death that is determined by the commissioner of public safety to meet the 
200.4 	requirements of section 299A.41, subdivision 3.

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

200.6 	Sec. 2. Minnesota Statutes 2016, section 353G.01, subdivision 9, is amended to read:
200.7 		Subd. 9.Municipality. "Municipality" means a governmental entity specified in section 
200.8 	69.011, subdivision 1, paragraph (b), clauses (1), (2), and (5)., a city or township that has 
200.9 	entered into a contract with an independent nonprofit firefighting corporation, or a city or 
200.10 	township that has entered into a contract with a joint powers entity established under section 
200.11 	471.59.

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

200.13 	Sec. 3. Minnesota Statutes 2016, section 353G.01, is amended by adding a subdivision to 
200.14 	read:
200.15 		Subd. 9a.Relief association. "Relief association" means a volunteer firefighter relief 
200.16 	association established under chapter 424A to which records, assets, and liabilities related 
200.17 	to lump-sum or monthly benefits for active and former firefighters will be transferred from 
200.18 	the retirement fund upon satisfaction of the requirements of section 353G.17.

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

200.20 	Sec. 4. Minnesota Statutes 2016, section 353G.02, subdivision 6, is amended to read:
200.21 		Subd. 6.Initial administrative expenses of the monthly benefit retirement division; 
200.22 	allocation of reimbursement. (a) The administration expenses incurred by the Public 
200.23 	Employees Retirement Association in the establishment of the monthly benefit retirement 
200.24 	division of the voluntary statewide volunteer firefighter retirement plan, including any 
200.25 	computer programming expenses and any actuarial consultant expenses, are payable from 
200.26 	the assets of the initial monthly benefit volunteer firefighter relief association that elects to 
200.27 	transfer its administration to the voluntary statewide volunteer firefighter retirement plan, 
200.28 	following the transfer of assets.
200.29 	(b) The administrative expenses in excess of $33,600 paid under paragraph (a) must be 
200.30 	reimbursed by the next nine monthly benefit volunteer firefighter relief associations that 
200.31 	transfer plan administration to the voluntary statewide volunteer firefighter retirement plan. 
201.1 	The reimbursement charge for each of the nine is three-tenths of one percent of the market 
201.2 	value of assets of the volunteer firefighter relief association as of December 31, 2012. The 
201.3 	reimbursement amounts, up to the amount of administrative expenses actually incurred 
201.4 	under paragraph (a) in excess of $33,600, must be credited to the account of the fire 
201.5 	department associated with the former monthly benefit volunteer firefighter relief association 
201.6 	that first transferred plan administration to the volunteer firefighter retirement plan.

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

201.8 	Sec. 5. Minnesota Statutes 2016, section 353G.03, subdivision 3, is amended to read:
201.9 		Subd. 3.Composition. (a) The advisory board consists of eightten members.
201.10 	(b) The advisory board members are:
201.11 	(1) one representative of Minnesota townships, appointed by the Minnesota Association 
201.12 	of Townships;
201.13 	(2) two representatives of Minnesota cities, appointed by the League of Minnesota Cities;
201.14 	(3) one representative of Minnesota fire chiefs, who is a fire chief, appointed by the 
201.15 	Minnesota State Fire Chiefs Association;
201.16 	(4) two representatives of Minnesota volunteer firefighters, all who are active volunteer 
201.17 	firefighters, one of whom is covered by the lump-sum retirement division and one of whom 
201.18 	is covered by the monthly benefit retirement division, appointed by the Minnesota State 
201.19 	Fire Chiefs Association;
201.20 	(5) one representative three representatives of Minnesota volunteer firefighters who is
201.21 	are covered by the lump-sum retirement division, appointed by the Minnesota State Fire 
201.22 	Departments Association; and
201.23 	(6) one representative of the Office of the State Auditor, designated by the state auditor.

201.24 	Sec. 6. Minnesota Statutes 2016, section 353G.08, subdivision 3, is amended to read:
201.25 		Subd. 3.Authorized account disbursements.  The assets of a lump-sum retirement 
201.26 	account or of a monthly benefit retirement account of the retirement fund may only be 
201.27 	disbursed for:
201.28 	(1) the administrative expenses of the retirement plan;
201.29 	(2) the investment expenses of the retirement fund;
201.30 	(3) the service pensions payable under section 353G.10, 353G.11, 353G.14, or 353G.15;
202.1 	(4) the survivor benefits payable under section 353G.12; and
202.2 	(5) the disability benefit coverage insurance premiums under section 353G.115; and
202.3 	(6) a transfer of assets under section 353G.17.

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

202.5 	Sec. 7. Minnesota Statutes 2016, section 353G.11, subdivision 1, is amended to read:
202.6 		Subdivision 1.Service pension levels; lump-sum retirement division. Except as 
202.7 	provided in subdivision 1a, the lump-sum retirement division of the retirement plan provides 
202.8 	the following levels of service pension amounts per full year of good time service credit to 
202.9 	be selected at the election of coverage:
202.10 	(1) a minimum service pension level of $500 per year;
202.11 	(2) a maximum service pension level of $7,500 per year equal to the largest amount 
202.12 	permitted under section 424A.02, subdivision 3, paragraph (d), as a maximum lump-sum 
202.13 	service pension amount payable for each year of service; and
202.14 	(3) 69 service pension levels between the minimum level and the maximum level in 
202.15 	$100 increments.

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

202.17 	Sec. 8. [353G.17] TRANSFER AUTHORIZED.
202.18 		Subdivision 1.Entity to initiate transfer. (a) An entity operating a fire department with 
202.19 	firefighters who are covered by the retirement plan may initiate the transfer of records, 
202.20 	assets, and liabilities related to the firefighters' lump-sum or monthly benefits under the 
202.21 	retirement plan to a relief association that, at the time of the transfer, will be associated with 
202.22 	the entity. The entity may be a municipality, an independent nonprofit firefighting 
202.23 	corporation, or a joint powers entity.
202.24 	(b) A transfer is initiated by filing with the executive director the following:
202.25 	(1) a notice of intent to initiate a transfer;
202.26 	(2) a copy of the resolutions of the entity approving the transfer of records, assets, and 
202.27 	liabilities from the retirement plan to a relief association; and
202.28 	(3) for each firefighter, the firefighter's name, address, telephone number, and e-mail 
202.29 	address, if any.
202.30 	(c) The notice shall inform the executive director of the following:
203.1 	(1) the transfer effective date, which shall comply with paragraph (d);
203.2 	(2) the name of the relief association and the municipality, independent nonprofit 
203.3 	firefighting corporation, or joint powers entity with which the relief association is associated; 
203.4 	and
203.5 	(3) a summary of the type and level of pension or retirement benefits, including any 
203.6 	ancillary benefits, provided by the relief association or, in the case of a new relief association, 
203.7 	to be provided, and related terms and conditions.
203.8 	(d) If the notice of intent to transfer is filed with the executive director before September 
203.9 	1, the transfer takes effect on the next January 1. If the notice of intent to transfer is filed 
203.10 	after August 31, the transfer takes effect on the January 1 following the one-year anniversary 
203.11 	of the filing of the notice.
203.12 		Subd. 2.Approval by the relief association. (a) Before a transfer of records, assets, 
203.13 	and liabilities from the retirement plan to a relief association may occur, the board of trustees 
203.14 	of the relief association shall adopt resolutions as follows:
203.15 	(1) approving and accepting the transfer of records, assets, and liabilities from the 
203.16 	retirement plan; and
203.17 	(2) amending the bylaws of the relief association as necessary to add the firefighters 
203.18 	whose benefits are being transferred from the retirement plan and to provide that each benefit 
203.19 	being transferred retains vesting, distribution, and other rights to which the firefighter, for 
203.20 	whom the benefit is being transferred, is entitled under the terms of the retirement plan to 
203.21 	the date of the transfer.
203.22 	The board of trustees shall file a copy of the resolutions with the executive director.
203.23 	(b) The board of trustees of the relief association shall file with the state auditor the 
203.24 	following:
203.25 	(1) a copy of the resolutions required under paragraph (a);
203.26 	(2) a copy of the bylaws of the relief association and any bylaw amendments;
203.27 	(3) a copy of the relief association's investment policy;
203.28 	(4) a statement that a board of trustees has been duly elected and each trustee's name, 
203.29 	address, telephone number, and e-mail address, if any;
203.30 	(5) a copy of the most recent annual financial, investment, and plan administration report 
203.31 	filed under section 69.051, unless the due date for the first such report has not yet occurred; 
203.32 	and
204.1 	(6) a copy of the documentation indicating that a special fund has been established with 
204.2 	a financial institution to receive a transfer of assets from the retirement plan.
204.3 	(c) Upon receipt of the information and documents required under paragraph (b), the 
204.4 	state auditor shall issue to the relief association and the executive director written 
204.5 	confirmation of receipt of all required information and documents.
204.6 		Subd. 3.Approval by the firefighters. (a) A transfer under subdivision 1 shall not occur 
204.7 	unless the active firefighters whose benefits are to be transferred from the retirement plan 
204.8 	to a relief association approve the transfer by a vote of the firefighters conducted by the 
204.9 	executive director.
204.10 	(b) The approval of the firefighters shall be determined by a vote of all active firefighters 
204.11 	whose benefits are to be transferred. An affirmative vote of a majority of the firefighters 
204.12 	voting shall constitute approval.
204.13 	(c) The executive director shall provide a voting ballot and the following to each active 
204.14 	firefighter:
204.15 	(1) a summary of the benefits currently provided to the firefighters under the retirement 
204.16 	plan;
204.17 	(2) a copy of the resolutions of the municipality approving the transfer;
204.18 	(3) a copy of the resolutions of the board of trustees approving the transfer;
204.19 	(4) a copy of the notice of intent to transfer required under subdivision 1;
204.20 	(5) a copy of the state auditor's confirmation required under subdivision 2, paragraph 
204.21 	(c); and
204.22 	(6) the instructions and time frame for voting. Firefighters shall be given no less than 
204.23 	30 days in which to vote.
204.24 	(d) The vote of any firefighter, including whether or not the firefighter voted, shall not 
204.25 	be disclosed to any officer or member of the staff of the municipality or to any officer, 
204.26 	trustee, or member of the staff of the relief association.
204.27 	(e) The executive director shall tally the votes and report the results to the relief 
204.28 	association and the municipality.
204.29 		Subd. 4.Transfer process. (a) Upon completion of the actions required under 
204.30 	subdivisions 1 to 3, the retirement plan shall transfer to the relief association as of the 
204.31 	effective date identified in the notice under subdivision 1, the records, assets, and liabilities 
204.32 	related to the former and current firefighters with benefits under the retirement plan, along 
205.1 	with any assets in excess of liabilities credited to the lump-sum account or the monthly 
205.2 	benefit retirement account attributable to the firefighters and the municipality.
205.3 	(b) The executive director:
205.4 	(1) shall transfer the assets in cash;
205.5 	(2) shall transfer any accounts receivable associated with the lump-sum account or 
205.6 	monthly benefit retirement account;
205.7 	(3) shall settle any accounts payable from the account before the transfer; and
205.8 	(4) may deduct from the assets to be transferred reasonable costs incurred by the 
205.9 	retirement plan to conduct the voting process and complete the transfer.
205.10 		Subd. 5.Relief association obligations and rights upon transfer from the retirement 
205.11 	plan. (a) Upon transfer of the assets of the lump-sum account or monthly benefit retirement 
205.12 	account, the pension liabilities attributable to the benefits for the former and current 
205.13 	firefighters shall become the obligation of the special fund of the relief association.
205.14 	(b) Upon the transfer of the assets of the lump-sum account or monthly benefit retirement 
205.15 	account, the board of trustees of the relief association has legal title to and management 
205.16 	responsibility for the transferred assets as trustees for persons having a beneficial interest 
205.17 	in those assets arising out of the benefit coverage provided by the account.
205.18 	(c) The relief association is the successor in interest with respect to all claims against 
205.19 	the retirement plan relating to the transferred lump-sum account or monthly benefit retirement 
205.20 	account, except for claims alleging any act or acts by the retirement plan or its fiduciaries 
205.21 	that were not done in good faith or that constituted a breach of fiduciary responsibility under 
205.22 	chapter 356A.
205.23 	(d) The value of each volunteer firefighter's benefit in the retirement plan on the day 
205.24 	before the asset transfer shall be no less than the value of the volunteer firefighter's benefit 
205.25 	on the day after the asset transfer. The relief association shall give credit, with respect to 
205.26 	each firefighter whose benefit is being transferred, for all past service, including service 
205.27 	credit with the retirement plan and with any predecessor relief association, to the extent 
205.28 	credit is given for such service in the records of the retirement plan for that firefighter.
205.29 	(e) Upon completion of the transfer of records, assets, and liabilities, the executive 
205.30 	director shall provide written notice to the state auditor, the commissioner of revenue, and 
205.31 	the secretary of state that the transfer is complete.
206.1 		Subd. 6.Failure to obtain approval, certification, or verification. If the municipality, 
206.2 	board of trustees, or firefighters fail to approve the transfer under subdivision 1, 2, or 3 or 
206.3 	the requirements of subdivision 2, paragraph (b), are not met, the transfer of records, assets, 
206.4 	and liabilities from the retirement plan to the relief association shall not occur.

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

206.6 	Sec. 9. BROOK PARK; LOWERING SERVICE PENSION LEVEL.
 206.7 	(a) Notwithstanding any law to the contrary, the Public Employees Retirement Association 
206.8 	must lower the annual service pension level for the Brook Park lump-sum account benefits 
206.9 	payable to its volunteer firefighters under Minnesota Statutes, section 353G.11, subdivision 
206.10 	2, from $1,200 to $600, retroactively from January 1, 2016.
206.11 	(b) The city of Brook Park must annually review the service pension level to determine 
206.12 	if the level is appropriate, taking into account the city's need to recruit and retain volunteer 
206.13 	firefighters.

206.14 	EFFECTIVE DATE. Paragraph (a) is effective the day following final enactment. 
206.15 	Paragraph (b) is effective the day after the governing body of the city of Brook Park and 
206.16 	its chief clerical officer timely complete their compliance with Minnesota Statutes, section 
206.17 	645.021, subdivisions 2 and 3.

206.18 	ARTICLE 18
206.19 	GENERALLY APPLICABLE RETIREMENT CHANGES

206.20 	Section 1. Minnesota Statutes 2016, section 356.24, subdivision 1, is amended to read:
206.21 		Subdivision 1.Restriction; exceptions.  It is unlawful for a school district or other 
206.22 	governmental subdivision or state agency to levy taxes for or to contribute public funds to 
206.23 	a supplemental pension or deferred compensation plan that is established, maintained, and 
206.24 	operated in addition to a primary pension program for the benefit of the governmental 
206.25 	subdivision employees other than:
206.26 	(1) to a supplemental pension plan that was established, maintained, and operated before 
206.27 	May 6, 1971;
206.28 	(2) to a plan that provides solely for group health, hospital, disability, or death benefits;
206.29 	(3) to the individual retirement account plan established by chapter 354B;
206.30 	(4) to a plan that provides solely for severance pay under section 465.72 to a retiring or 
206.31 	terminating employee;
207.1 	(5) for employees other than personnel employed by the Board of Trustees of the 
207.2 	Minnesota State Colleges and Universities and covered under the Higher Education 
207.3 	Supplemental Retirement Plan under chapter 354C, but including city managers covered 
207.4 	by an alternative retirement arrangement under section 353.028, subdivision 3, paragraph 
207.5 	(a), or by the defined contribution plan of the Public Employees Retirement Association 
207.6 	under section 353.028, subdivision 3, paragraph (b), if the supplemental plan coverage is 
207.7 	provided for in a personnel policy of the public employer or in the collective bargaining 
207.8 	agreement between the public employer and the exclusive representative of public employees 
207.9 	in an appropriate unit or in the individual employment contract between a city and a city 
207.10 	manager, and if for each available investment all fees and historic rates of return for the 
207.11 	prior one-, three-, five-, and ten-year periods, or since inception, are disclosed in an easily 
207.12 	comprehended document not to exceed two pages, in an amount matching employee 
207.13 	contributions on a dollar for dollar basis, but not to exceed an employer contribution of 
207.14 	one-half of the available elective deferral permitted per year per employee, under the Internal 
207.15 	Revenue Code:
207.16 	(i) to the state of Minnesota deferred compensation plan under section 352.965;
207.17 	(ii) in payment of the applicable portion of the contribution made to any investment 
207.18 	eligible under section 403(b) of the Internal Revenue Code, if the employing unit has 
207.19 	complied with any applicable pension plan provisions of the Internal Revenue Code with 
207.20 	respect to the tax-sheltered annuity program during the preceding calendar year; or
207.21 	(iii) any other deferred compensation plan offered by the employer under section 457 
207.22 	of the Internal Revenue Code;
207.23 	(6) for personnel employed by the Board of Trustees of the Minnesota State Colleges 
207.24 	and Universities and not covered by clause (5), to the supplemental retirement plan under 
207.25 	chapter 354C, if the supplemental plan coverage is provided for in a personnel policy or in 
207.26 	the collective bargaining agreement of the public employer with the exclusive representative 
207.27 	of the covered employees in an appropriate unit, in an amount matching employee 
207.28 	contributions on a dollar for dollar basis, but not to exceed an employer contribution of 
207.29 	$2,700 a year for each employee;
207.30 	(7) to a supplemental plan or to a governmental trust to save for postretirement health 
207.31 	care expenses qualified for tax-preferred treatment under the Internal Revenue Code, if the 
207.32 	supplemental plan coverage is provided for in a personnel policy or in the collective 
207.33 	bargaining agreement of a public employer with the exclusive representative of the covered 
207.34 	employees in an appropriate unit;
208.1 	(8) to the laborers national industrial pension fund or to a laborers local pension fund 
208.2 	for the employees of a governmental subdivision who are covered by a collective bargaining 
208.3 	agreement that provides for coverage by that fund and that sets forth a fund contribution 
208.4 	rate, but not to exceed an employer contribution of $5,000 $7,000 per year per employee;
208.5 	(9) to the plumbers and pipefitters national pension fund or to a plumbers and pipefitters 
208.6 	local pension fund for the employees of a governmental subdivision who are covered by a 
208.7 	collective bargaining agreement that provides for coverage by that fund and that sets forth 
208.8 	a fund contribution rate, but not to exceed an employer contribution of $5,000 per year per 
208.9 	employee;
208.10 	(10) to the international union of operating engineers pension fund for the employees 
208.11 	of a governmental subdivision who are covered by a collective bargaining agreement that 
208.12 	provides for coverage by that fund and that sets forth a fund contribution rate, but not to 
208.13 	exceed an employer contribution of $5,000 per year per employee;
208.14 	(11) to a supplemental plan organized and operated under the federal Internal Revenue 
208.15 	Code, as amended, that is wholly and solely funded by the employee's accumulated sick 
208.16 	leave, accumulated vacation leave, and accumulated severance pay;
208.17 	(12) to the International Association of Machinists national pension fund for the 
208.18 	employees of a governmental subdivision who are covered by a collective bargaining 
208.19 	agreement that provides for coverage by that fund and that sets forth a fund contribution 
208.20 	rate, but not to exceed an employer contribution of $5,000 per year per employee;
208.21 	(13) for employees of United Hospital District, Blue Earth, to the state of Minnesota 
208.22 	deferred compensation program, if the employee makes a contribution, in an amount that 
208.23 	does not exceed the total percentage of covered salary under section 353.27, subdivisions 
208.24 	3 and 3a;
208.25 	(14) to the alternative retirement plans established by the Hennepin County Medical 
208.26 	Center under section 383B.914, subdivision 5; or
208.27 	(15) to the International Brotherhood of Teamsters Central States pension plan for 
208.28 	fixed-route bus drivers employed by the St. Cloud Metropolitan Transit Commission who 
208.29 	are members of the International Brotherhood of Teamsters Local 638 by virtue of that 
208.30 	employment.

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

209.1 	Sec. 2. [356.631] ADDITIONAL SOURCES OF FUNDING.
209.2 	Notwithstanding any other provision of law to the contrary, in addition to all sources of 
209.3 	funding described in Minnesota Statutes, section 356.63, paragraphs (a) and (b), any public 
209.4 	retirement plan described in Minnesota Statutes, section 356.63, paragraph (b), is authorized 
209.5 	to accept, at its discretion, for deposit in its fund the following:
209.6 	(1) gifts;
209.7 	(2) donations;
209.8 	(3) bequests; and
209.9 	(4) life insurance death benefits.

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

209.11 	Sec. 3.  REPEALER.
 209.12 	Minnesota Statutes 2016, sections 352.04, subdivision 11; and 353.34, subdivision 6,
209.13 	are repealed.

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

209.15 	ARTICLE 19
209.16 	SMALL GROUP RETIREMENT CHANGES

209.17 	Section 1. MSRS-GENERAL RETIREMENT ELIGIBILITY CLARIFICATION; 
209.18 	SERVICE CREDIT PURCHASE IN CERTAIN INSTANCES.
 209.19 	(a) Notwithstanding any provision of law to the contrary, an eligible person described 
209.20 	in paragraph (b) is entitled to purchase prior uncredited service credit under paragraph (c) 
209.21 	and, if the service credit purchase is made, to have an effective start date for active retirement 
209.22 	plan membership of June 1, 1989, and to retire under Minnesota Statutes, section 352.116, 
209.23 	subdivision 1.
209.24 	(b) An eligible person is a person who:
209.25 	(1) was born on the dates as follows:

209.26		employee
	birth date
	
209.27		A
	October 2, 1968
	
209.28		B
	June 12, 1965
	
209.29		C
	August 10, 1958
	
209.30		D
	April 29, 1963
	
210.1		E
	April 11, 1955
	
210.2		F
	August 13, 1966
	
210.3		G
	April 22, 1961
	
210.4		H
	December 31, 1958
	
210.5		I
	October 10, 1966
	
210.6		J
	February 4, 1961
	
210.7		K
	August 21, 1963
	
210.8		L
	January 23, 1960
	
210.9		M
	September 19, 1966
	
210.10		N
	November 3, 1961
	
210.11		O
	June 13, 1958
	
210.12		P
	June 23, 1954
	
210.13		Q
	October 20, 1956
	
210.14		R
	July 28, 1955
	
210.15		S
	May 6, 1960
	
210.16		T
	March 19, 1966
	
210.17		U
	August 19, 1966
	
210.18		V
	March 14, 1959
	
210.19 	(2) became an employee of the Minnesota Department of Transportation prior to July 
210.20 	1, 1989, in a position which was not covered by the general state employees retirement plan 
210.21 	of the Minnesota State Retirement System;
210.22 	(3) was eventually employed as a permanent employee after June 30, 1989, and covered 
210.23 	by the general state employees retirement plan of the Minnesota State Retirement System 
210.24 	on the dates as follows:

210.25		employee
	membership record date
	
210.26		A
	September 27, 1989
	
210.27		B
	September 27, 1989
	
210.28		C
	September 26, 1989
	
210.29		D
	September 27, 1989
	
210.30		E
	September 26, 1989
	
210.31		F
	September 13, 1989
	
210.32		G
	September 1, 1989
	
210.33		H
	September 27, 1989
	
210.34		I
	September 27, 1989
	
210.35		J
	September 13, 1989
	
210.36		K
	September 13, 1989
	
210.37		L
	September 26, 1989
	
211.1		M
	August 30, 1989
	
211.2		N
	September 26, 1989
	
211.3		O
	September 13, 1989
	
211.4		P
	September 27, 1989
	
211.5		Q
	September 27, 1989
	
211.6		R
	September 27, 1989
	
211.7		S
	September 13, 1989
	
211.8		T
	September 13, 1989
	
211.9		U
	September 27, 1989
	
211.10		V
	September 26, 1989
	
211.11 	(4) was sent annual statements by the Minnesota State Retirement System between July 
211.12 	1, 2005, and July 1, 2015, indicating eligibility for a retirement benefit under Minnesota 
211.13 	Statutes, section 352.116, subdivision 1; and
211.14 	(5) was sent notification from the Minnesota State Retirement System revising the start 
211.15 	date for general state employees retirement plan membership from a date before July 1, 
211.16 	1989, to a date after June 30, 1989, and indicating consequent inapplicability of Minnesota 
211.17 	Statutes, section 352.116, subdivision 1.
211.18 	(c) An eligible person may purchase allowable service credit in the general state 
211.19 	employees retirement plan of the Minnesota State Retirement System by paying an amount 
211.20 	equal to the employer contributions and employee contributions that would have been paid 
211.21 	from June 1, 1989, to the end of the month prior to the date the employee entered covered 
211.22 	service plus interest at the rate of 8.5 percent until June 30, 2015, and eight percent thereafter 
211.23 	compounded annually on the combined employer and employee contribution amount from 
211.24 	the date the contributions would have been paid to the date the Minnesota State Retirement 
211.25 	System receives payment for this service credit purchase. The payment must be made in a 
211.26 	lump sum.
211.27 	(d) An eligible person who purchases allowable service credit under paragraph (c) has 
211.28 	a June 1, 1989, start date for the purpose of allowable service credited by the general state 
211.29 	employees retirement plan of the Minnesota State Retirement System and is eligible for a 
211.30 	retirement annuity under Minnesota Statutes, section 352.116, subdivision 1.
211.31 	(e) Authority to purchase prior uncredited service credit under this section expires one 
211.32 	year from the effective date of this section.

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

212.1 	Sec. 2. PERA-GENERAL; PURCHASE OF SERVICE CREDIT FOR ST. CLOUD 
212.2 	STATE UNIVERSITY EMPLOYEE.
 212.3 	(a) Notwithstanding any provision of law to the contrary, an eligible person described 
212.4 	in paragraph (b) is entitled to purchase from the general employees retirement plan of the 
212.5 	Public Employees Retirement Association allowable service credit under Minnesota Statutes, 
212.6 	section 353.01, subdivision 16, for the period of service described in paragraph (c).
212.7 	(b) An eligible person is a person who:
212.8 	(1) was born on September 1, 1960;
212.9 	(2) was an employee of St. Cloud State University on March 14, 2016;
212.10 	(3) was a member of the general employees retirement plan of the Public Employees 
212.11 	Retirement Association on March 14, 2016;
212.12 	(4) was employed by St. Cloud Technical College on April 1, 1993, and was a member 
212.13 	of the general employees retirement plan of the Public Employees Retirement Association; 
212.14 	and
212.15 	(5) changed employment within St. Cloud State University on February 22, 2006, and 
212.16 	was erroneously placed into the higher education individual retirement account plan from 
212.17 	February 22, 2006, until May 10, 2011, by the Minnesota State Colleges and Universities 
212.18 	system.
212.19 	(c) The period of uncredited service authorized for purchase is the period of February 
212.20 	22, 2006, until May 10, 2011, during which time the eligible person was erroneously placed 
212.21 	into and contributed to the higher education individual retirement account plan.
212.22 	(d) The eligible person's member contributions to the higher education individual 
212.23 	retirement account plan must be transferred to the Public Employees Retirement Association 
212.24 	with any earned investment returns on those contributions. The eligible person must pay 
212.25 	the member contributions that the eligible person would have made to the Public Employees 
212.26 	Retirement Association on the eligible person's compensation from the Minnesota State 
212.27 	Colleges and Universities system for the period of service described in paragraph (c) as if 
212.28 	the person had been covered by the Public Employees Retirement Association during the 
212.29 	period, plus annual compound interest on that amount at the rate of 8.5 percent from February 
212.30 	22, 2006, until June 30, 2015, and eight percent from July 1, 2015, until the date on which 
212.31 	payment is made to the Public Employees Retirement Association, less the transferred 
212.32 	member contributions and investment earnings.
213.1 	(e) Upon transfer of the equivalent member contribution amount and any additional 
213.2 	payments under paragraph (d), the balance of the eligible person's higher education individual 
213.3 	retirement account plan account must be transferred to the Public Employees Retirement 
213.4 	Association within 60 days following the receipt of the eligible person's payment under 
213.5 	paragraph (d).
213.6 	(f) Upon the transfer of the amounts under paragraphs (d) and (e), the Minnesota State 
213.7 	Colleges and Universities system shall pay the prior service credit purchase payment amount 
213.8 	calculated under Minnesota Statutes, section 356.551, less any amounts received under 
213.9 	paragraphs (d) and (e), within 60 days following the receipt of the eligible person's payment 
213.10 	under paragraph (d).
213.11 	(g) Upon the transfers and payments under paragraph (f), the eligible person must be 
213.12 	credited by the Public Employees Retirement Association with allowable service credit for 
213.13 	Minnesota State Colleges and Universities System employment from February 22, 2006, 
213.14 	until May 10, 2011.
213.15 	(h) Authority to make a service credit purchase under this section expires one year from 
213.16 	the effective date of this section.

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

213.18 	Sec. 3. TRA COVERAGE ELECTION AND PERA REFUND REPAYMENT 
213.19 	AUTHORITY FOR CERTAIN MNSCU EMPLOYEE.
 213.20 	(a) Notwithstanding any provision of Minnesota Statutes, chapter 353 or 354B, to the 
213.21 	contrary, an eligible person described in paragraph (b) is eligible to become a coordinated 
213.22 	member of the Teachers Retirement Association and to purchase service and salary credit 
213.23 	in the Teachers Retirement Association coordinated plan retroactively from July 1, 2001, 
213.24 	upon repaying a member contribution refund taken from the general employees retirement 
213.25 	plan of the Public Employees Retirement Association under paragraph (c), upon making 
213.26 	an election under paragraph (e), and upon making all required payments under paragraphs 
213.27 	(f) and (g).
213.28 	(b) An eligible person is a person who:
213.29 	(1) was born April 4, 1956;
213.30 	(2) was employed by a governmental subdivision in 1995, with retirement coverage in 
213.31 	the general employees retirement plan of the Public Employees Retirement Association, 
213.32 	for which a refund of member contributions and interest was taken before 2001;
214.1 	(3) was employed by St. Cloud State University in the late 1990s, with retirement 
214.2 	coverage in the general state employees retirement plan of the Minnesota State Retirement 
214.3 	System;
214.4 	(4) was hired as an academic advisor by St. Cloud State University on July 1, 2001, with 
214.5 	retirement coverage in the higher education individual retirement account plan; and
214.6 	(5) was not informed of the option to elect Teachers Retirement Association coverage 
214.7 	in the coverage election authorized by Minnesota Statutes 2001, section 354B.21, so remained 
214.8 	in the higher education individual retirement account plan.
214.9 	(c) The refund repayment required by Minnesota Statutes, section 356.551, subdivision 
214.10 	1, paragraph (c), must be calculated under Minnesota Statutes, section 353.35, subdivision 
214.11 	1, paragraph (c).
214.12 	(d) Authority to repay a refund under this section expires one year from the effective 
214.13 	date of this section.
214.14 	(e) To be eligible for coverage by the Teachers Retirement Association, an eligible 
214.15 	person must submit a written application to the executive director of the Teachers Retirement 
214.16 	Association on a form provided by the Teachers Retirement Association. The application 
214.17 	must include all documentation of the applicability of this section and any other relevant 
214.18 	information that the executive director may require. Teachers Retirement Association plan 
214.19 	membership commences after the date of the retirement coverage election under this section 
214.20 	and past salary and service credit is granted for past Minnesota State Colleges and 
214.21 	Universities system employment from July 1, 2001, until the executive director receives 
214.22 	the written application specified in this paragraph and receipts of the payments specified in 
214.23 	paragraphs (c), (f), and (g). Coverage by the Teachers Retirement Association is in lieu of 
214.24 	coverage by the individual retirement account plan.
214.25 	(f) If the eligible person makes the retirement coverage election under paragraph (e), 
214.26 	the eligible person's member contributions to the higher education individual retirement 
214.27 	account plan must be transferred to the Teachers Retirement Association with any earned 
214.28 	investment returns on those contributions. If the transferred member contributions and 
214.29 	investment earnings are less than the calculated amount of the member contributions that 
214.30 	the eligible person would have made to the Teachers Retirement Association on the eligible 
214.31 	person's compensation from the Minnesota State Colleges and Universities system for the 
214.32 	period from July 1, 2001, to the date of the retirement coverage election if the person had 
214.33 	been covered by the Teachers Retirement Association during the period, plus annual 
214.34 	compound interest at the rate of 8.5 percent, then the eligible person shall pay the balance 
215.1 	of that calculated member contribution obligation within 30 days of the retirement coverage 
215.2 	election.
215.3 	(g) Upon the transfer of the equivalent member contribution amount and any additional 
215.4 	payment under paragraph (f), the balance of the eligible person's higher education individual 
215.5 	retirement account plan account must be transferred to the Teachers Retirement Association. 
215.6 	If the amounts under paragraph (f) and the individual retirement account plan balance under 
215.7 	this paragraph are less than the prior service credit purchase payment amount calculated 
215.8 	under Minnesota Statutes, section 356.551, the Minnesota State Colleges and Universities 
215.9 	system shall pay the difference within 60 days of the retirement election date.
215.10 	(h) The authority to make a retirement coverage election under this section expires one 
215.11 	year from the effective date of this section.

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

215.13 	Sec. 4. TRA COVERAGE FOR CERTAIN MESABI RANGE COMMUNITY AND 
215.14 	TECHNICAL COLLEGE FACULTY MEMBERS.
 215.15 	(a) Notwithstanding any provision of law to the contrary, an eligible person described 
215.16 	in paragraph (b) is authorized to become a coordinated member of the Teachers Retirement 
215.17 	Association and to purchase service and salary credit in the Teachers Retirement Association 
215.18 	coordinated plan retroactive from July 19, 2000, or September 15, 2000, whichever is 
215.19 	applicable, upon making an election under paragraph (c) and upon making all required 
215.20 	payments under paragraphs (d) and (e).
215.21 	(b) An eligible person is a person who:
215.22 	(1) either:
215.23 	(i) was born on September 25, 1964, and has been employed at Mesabi Range Community 
215.24 	and Technical College and a contributing member of the higher education individual 
215.25 	retirement account plan since July 19, 2000; or
215.26 	(ii) was born on October 15, 1963, and has been employed at Mesabi Range Community 
215.27 	and Technical College and a contributing member of the higher education individual 
215.28 	retirement account plan since September 15, 2000;
215.29 	(2) was classified in the unlimited full-time category on August 21, 2012;
215.30 	(3) became eligible for an election of Teachers Retirement Association coverage under 
215.31 	Laws 2009, chapter 169, article 6, section 1; and
216.1 	(4) was not offered an election of Teachers Retirement Association coverage by the 
216.2 	Minnesota State Colleges and Universities system.
216.3 	(c) To be eligible for coverage by the Teachers Retirement Association, an eligible 
216.4 	person must submit a written application to the executive director of the Teachers Retirement 
216.5 	Association on a form provided by the Teachers Retirement Association. The application 
216.6 	must include all documentation of the applicability of this section and any other relevant 
216.7 	information that the executive director may require. Teachers Retirement Association plan 
216.8 	membership commences after the date of the retirement coverage election under this section 
216.9 	and past salary and service credit is granted for past Minnesota State Colleges and 
216.10 	Universities system employment from July 19, 2000, or September 15, 2000, whichever is 
216.11 	applicable, until the executive director receives the written application specified in this 
216.12 	paragraph and receipts of the payments specified in paragraphs (d) and (e). Coverage by 
216.13 	the Teachers Retirement Association is in lieu of coverage by the individual retirement 
216.14 	account plan.
216.15 	(d) If the eligible person makes the retirement coverage election under paragraph (c), 
216.16 	the eligible person shall make a contribution to the Teachers Retirement Association equal 
216.17 	to the excess, if any, of the employee contributions that the eligible person would have made 
216.18 	if the Teachers Retirement Association had provided coverage from July 19, 2000, or 
216.19 	September 15, 2000, whichever is applicable, rather than the individual retirement account 
216.20 	plan. These additional contribution amounts shall include 8.5 percent annual compound 
216.21 	interest computed from the date the contribution would have been made if deducted from 
216.22 	salary until paid. The total amount to be paid under this paragraph shall be determined by 
216.23 	the executive director of the Teachers Retirement Association and written notification of 
216.24 	the amount required under this paragraph must be transmitted to the eligible person.
216.25 	(e) If payment is made under paragraph (d), the value of the applicable eligible person's 
216.26 	higher education individual retirement account plan account shall be transferred to the 
216.27 	Teachers Retirement Association.
216.28 	(f) The Teachers Retirement Association shall determine the required purchase payment 
216.29 	amount calculated under Minnesota Statutes, section 356.551, imposed upon the Teachers 
216.30 	Retirement Association under this section due to the salary and service credit purchase.
216.31 	(g) From the total amount computed under paragraph (f), the executive director of the 
216.32 	Teachers Retirement Association shall subtract the amounts received under paragraphs (d) 
216.33 	and (e). The Minnesota State Colleges and Universities system must transmit the remaining 
217.1 	amount, if any, to the executive director of the Teachers Retirement Association within 60 
217.2 	days following the receipt of the payments under paragraphs (d) and (e).
217.3 	(h) The authority to make a retirement coverage election under this section expires one 
217.4 	year from the effective date of this section.

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

217.6 	Sec. 5. TEACHERS RETIREMENT ASSOCIATION COVERAGE ELECTION 
217.7 	AND MINNESOTA STATE RETIREMENT SYSTEM REFUND REPAYMENT 
217.8 	AUTHORITY FOR CERTAIN WINONA STATE UNIVERSITY EMPLOYEE.
 217.9 	(a) Notwithstanding any provision of Minnesota Statutes, chapter 352 or 354B, to the 
217.10 	contrary, an eligible person described in paragraph (b) is eligible to become a coordinated 
217.11 	member of the Teachers Retirement Association and to purchase service and salary credit 
217.12 	in the Teachers Retirement Association coordinated plan retroactively from January 1, 1995, 
217.13 	upon repaying a member contribution refund taken from the general employees retirement 
217.14 	plan of the Minnesota State Retirement System under paragraph (c), upon making an election 
217.15 	under paragraph (e), and upon making all required payments under paragraphs (f), (g), and 
217.16 	(h).
217.17 	(b) An eligible person is a person who:
217.18 	(1) was born November 11, 1957;
217.19 	(2) began state employment in 1981, with retirement coverage in the general employees 
217.20 	retirement plan of the Minnesota State Retirement System for which a refund of member 
217.21 	contributions and interest was taken;
217.22 	(3) was employed by Winona State University on September 11, 1989, with retirement 
217.23 	coverage in the higher education individual retirement account plan; and
217.24 	(4) was not informed of the option to elect Teachers Retirement Association coverage 
217.25 	in the coverage election authorized under Laws 1994, chapter 508, article 1, section 10, so 
217.26 	remained in the higher education individual retirement account plan.
217.27 	(c) The refund repayment required by Minnesota Statutes, section 356.551, subdivision 
217.28 	1, paragraph (c), must be calculated under Minnesota Statutes, section 352.23.
217.29 	(d) Authority to repay a refund under this section expires one year from the effective 
217.30 	date of this section.
217.31 	(e) To be eligible for coverage by the Teachers Retirement Association, an eligible 
217.32 	person must submit a written application to the executive director of the Teachers Retirement 
218.1 	Association on a form provided by the Teachers Retirement Association. The application 
218.2 	must include all relevant documentation and information that the executive director may 
218.3 	require. Teachers Retirement Association plan membership commences after the date of 
218.4 	the retirement coverage election under this section and past salary and service credit is 
218.5 	granted for past Minnesota State Colleges and Universities system employment from January 
218.6 	1, 1995, until the executive director receives the written application specified in this 
218.7 	paragraph and receipts of the payments specified in paragraphs (c), (f), (g), and (h). Coverage 
218.8 	by the Teachers Retirement Association is in lieu of coverage by the individual retirement 
218.9 	account plan.
218.10 	(f) If the eligible person makes the retirement coverage election under paragraph (e), 
218.11 	the eligible person's member contributions to the higher education individual retirement 
218.12 	account plan account from January 1, 1995, to the date of the retirement coverage election 
218.13 	must be transferred to the Teachers Retirement Association, with any earned investment 
218.14 	returns on those contributions. If the transferred member contributions and investment 
218.15 	earnings are less than the calculated amount of the member contributions that the eligible 
218.16 	person would have made to the Teachers Retirement Association on the eligible person's 
218.17 	compensation from the Minnesota State Colleges and Universities system for the period 
218.18 	from January 1, 1995, to the date of the retirement coverage election, if the person had been 
218.19 	covered by the Teachers Retirement Association during the period, plus annual compound 
218.20 	interest at the rate of 8.5 percent, then the eligible person shall pay the balance of that 
218.21 	calculated member contribution obligation within 30 days of the retirement coverage election.
218.22 	(g) Upon the transfer of the equivalent member contribution amount and any additional 
218.23 	payment under paragraph (f), the employer contributions made on behalf of the eligible 
218.24 	member to the higher education individual retirement account plan account from January 
218.25 	1, 1995, to the date of the retirement coverage election must be transferred to the Teachers 
218.26 	Retirement Association, with any earned investment returns on those contributions.
218.27 	(h) If the amounts under paragraphs (f) and (g) are less than the prior service credit 
218.28 	purchase payment amount under Minnesota Statutes, section 356.551, the Minnesota State 
218.29 	Colleges and Universities system shall pay the difference within 60 days following receipt 
218.30 	of the amounts transmitted under paragraphs (f) and (g).
218.31 	(i) The authority to make a retirement coverage election under this section expires one 
218.32 	year from the effective date of this section.

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

219.1 	Sec. 6. PERA COVERAGE ELECTION AND SERVICE CREDIT PURCHASE; 
219.2 	DULUTH TOWNSHIP CLERK.
 219.3 	(a) Notwithstanding any provision of Minnesota Statutes, chapter 353 or 353D, to the 
219.4 	contrary, an eligible person described in paragraph (b) is eligible to purchase from the 
219.5 	general employees retirement plan of the Public Employees Retirement Association allowable 
219.6 	service credit under section 353.01, subdivision 16, for the period of service described in 
219.7 	paragraph (c).
219.8 	(b) An eligible person is a person who:
219.9 	(1) was born on July 19, 1953;
219.10 	(2) became a member of the public employees defined contribution plan of the Public 
219.11 	Employees Retirement Association on January 7, 1997, as the elected clerk for Duluth 
219.12 	township;
219.13 	(3) should have become a member of the public employees general plan of the Public 
219.14 	Employees Retirement Association on April 12, 2001, when the elected clerk position 
219.15 	became an appointed position;
219.16 	(4) erroneously remained in the public employees defined contribution plan until February 
219.17 	2017; and
219.18 	(5) retroactively joined the public employees general plan to January 1, 2014, pursuant 
219.19 	to section 353.27, subdivision 12.
219.20 	(c) The period of uncredited service authorized for purchase is the period of April 12, 
219.21 	2001, until December 31, 2013.
219.22 	(d) Any member contributions made to the public employees defined contribution plan, 
219.23 	plus any earned investments returns on those contributions, remaining after the transfer 
219.24 	associated with the cost of omitted salary deductions pursuant to section 353.27, subdivision 
219.25 	12, may be transferred to the public employees general plan of the Public Employees 
219.26 	Retirement Association upon request from the eligible person. The transfer must occur 
219.27 	within 60 days of the request. Authority to request a transfer under this section expires 
219.28 	December 31, 2017.
219.29 	(e) Any employer contributions made to the public employees defined contribution plan, 
219.30 	plus any earned investment returns on those contributions, remaining after the transfer 
219.31 	associated with the cost of omitted salary deductions pursuant to section 353.27, subdivision 
219.32 	12, must be transferred to the public employees general plan of the Public Employees 
219.33 	Retirement Association at the same time as the transfer that occurs under paragraph (d).
220.1 	(f) If the eligible person requests a transfer under paragraph (d), the eligible person must 
220.2 	pay the member contributions that the eligible person would have made to the Public 
220.3 	Employees Retirement Association on the eligible person's compensation from the Duluth 
220.4 	township for the period of service described in paragraph (c) as if the person had been 
220.5 	covered by the public employees general plan, plus annual compound interest on that amount 
220.6 	at the rate of 8.5 percent from April 12, 2001, until June 30, 2015, and eight percent from 
220.7 	July 1, 2015, until the date payment is made to the Public Employees Retirement Association, 
220.8 	less the transferred member contributions and investment earnings.
220.9 	(g) Upon the transfer of the amounts under paragraphs (d), (e), and (f), Duluth township 
220.10 	shall pay the prior service credit purchase payment amount calculated under Minnesota 
220.11 	Statutes, section 356.551, less any amounts received under paragraphs (d), (e), and (f), 
220.12 	within 60 days following the receipt of the eligible person's payment under paragraph (f).
220.13 	(h) Upon the transfer and payment under paragraph (g), the eligible person must be 
220.14 	credited by the Public Employees Retirement Association with allowable service credit for 
220.15 	Duluth township employment from April 12, 2001, until December 31, 2013.
220.16 	(h) Authority to make a service credit purchase under this section expires one year from 
220.17 	the effective date of this section.

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

220.19 	ARTICLE 20
220.20 	TECHNICAL CORRECTIONS

220.21 	Section 1. Minnesota Statutes 2016, section 353.01, subdivision 16, is amended to read:
220.22 		Subd. 16.Allowable service; limits and computation. (a) "Allowable service" means:
220.23 	(1) service during years of actual membership in the course of which employee deductions 
220.24 	were withheld from salary and contributions were made at the applicable rates under section 
220.25 	353.27, 353.65, or 353E.03;
220.26 	(2) periods of service covered by payments in lieu of salary deductions under sections 
220.27 	353.27, subdivisions 12 and 12a, and 353.35;
220.28 	(3) service in years during which the public employee was not a member but for which 
220.29 	the member later elected, while a member, to obtain credit by making payments to the fund 
220.30 	as permitted by any law then in effect;
221.1 	(4) a period of authorized leave of absence during which the employee receives pay as 
221.2 	specified in subdivision 10, paragraph (a), clause (4) or (5), from which deductions for 
221.3 	employee contributions are made, deposited, and credited to the fund;
221.4 	(5) a period of authorized leave of absence without pay, or with pay that is not included 
221.5 	in the definition of salary under subdivision 10, paragraph (a), clause (4) or (5), for which 
221.6 	salary deductions are not authorized, and for which a member obtained service credit for 
221.7 	up to 12 months of the authorized leave period by payment under section 353.0161 or
221.8 	353.0162, to the fund made in place of salary deductions;
221.9 	(6) a periodic, repetitive leave that is offered to all employees of a governmental 
221.10 	subdivision. The leave program may not exceed 208 hours per annual normal work cycle 
221.11 	as certified to the association by the employer. A participating member obtains service credit 
221.12 	by making employee contributions in an amount or amounts based on the member's average 
221.13 	salary, excluding overtime pay, that would have been paid if the leave had not been taken. 
221.14 	The employer shall pay the employer and additional employer contributions on behalf of 
221.15 	the participating member. The employee and the employer are responsible to pay interest 
221.16 	on their respective shares at the rate of 8.5 percent until June 30, 2015, and eight percent 
221.17 	thereafter, compounded annually, from the end of the normal cycle until full payment is 
221.18 	made. An employer shall also make the employer and additional employer contributions, 
221.19 	plus 8.5 percent interest until June 30, 2015, and eight percent interest thereafter, compounded 
221.20 	annually, on behalf of an employee who makes employee contributions but terminates public 
221.21 	service. The employee contributions must be made within one year after the end of the 
221.22 	annual normal working cycle or within 30 days after termination of public service, whichever 
221.23 	is sooner. The executive director shall prescribe the manner and forms to be used by a 
221.24 	governmental subdivision in administering a periodic, repetitive leave. Upon payment, the 
221.25 	member must be granted allowable service credit for the purchased period;
221.26 	(7) an authorized temporary or seasonal layoff under subdivision 12, limited to three 
221.27 	months allowable service per authorized temporary or seasonal layoff in one calendar year. 
221.28 	An employee who has received the maximum service credit allowed for an authorized 
221.29 	temporary or seasonal layoff must return to public service and must obtain a minimum of 
221.30 	three months of allowable service subsequent to the layoff in order to receive allowable 
221.31 	service for a subsequent authorized temporary or seasonal layoff;
221.32 	(8) a period during which a member is absent from employment by a governmental 
221.33 	subdivision by reason of service in the uniformed services, as defined in United States Code, 
221.34 	title 38, section 4303(13), if the member returns to public service with the same governmental 
221.35 	subdivision upon discharge from service in the uniformed service within the time frames 
222.1 	required under United States Code, title 38, section 4312(e), provided that the member did 
222.2 	not separate from uniformed service with a dishonorable or bad conduct discharge or under 
222.3 	other than honorable conditions. The service must be credited if the member pays into the 
222.4 	fund equivalent employee contributions based upon the contribution rate or rates in effect 
222.5 	at the time that the uniformed service was performed multiplied by the full and fractional 
222.6 	years being purchased and applied to the annual salary rate. The annual salary rate is the 
222.7 	average annual salary during the purchase period that the member would have received if 
222.8 	the member had continued to be employed in covered employment rather than to provide 
222.9 	uniformed service, or, if the determination of that rate is not reasonably certain, the annual 
222.10 	salary rate is the member's average salary rate during the 12-month period of covered 
222.11 	employment rendered immediately preceding the period of the uniformed service. Payment 
222.12 	of the member equivalent contributions must be made during a period that begins with the 
222.13 	date on which the individual returns to public employment and that is three times the length 
222.14 	of the military leave period, or within five years of the date of discharge from the military 
222.15 	service, whichever is less. If the determined payment period is less than one year, the 
222.16 	contributions required under this clause to receive service credit may be made within one 
222.17 	year of the discharge date. Payment may not be accepted following 30 days after termination 
222.18 	of public service under subdivision 11a. If the member equivalent contributions provided 
222.19 	for in this clause are not paid in full, the member's allowable service credit must be prorated 
222.20 	by multiplying the full and fractional number of years of uniformed service eligible for 
222.21 	purchase by the ratio obtained by dividing the total member contributions received by the 
222.22 	total member contributions otherwise required under this clause. The equivalent employer 
222.23 	contribution, and, if applicable, the equivalent additional employer contribution must be 
222.24 	paid by the governmental subdivision employing the member if the member makes the 
222.25 	equivalent employee contributions. The employer payments must be made from funds 
222.26 	available to the employing unit, using the employer and additional employer contribution 
222.27 	rate or rates in effect at the time that the uniformed service was performed, applied to the 
222.28 	same annual salary rate or rates used to compute the equivalent member contribution. The 
222.29 	governmental subdivision involved may appropriate money for those payments. The amount 
222.30 	of service credit obtainable under this section may not exceed five years unless a longer 
222.31 	purchase period is required under United States Code, title 38, section 4312. The employing 
222.32 	unit shall pay interest on all equivalent member and employer contribution amounts payable 
222.33 	under this clause. Interest must be computed at the rate of 8.5 percent until June 30, 2015, 
222.34 	and eight percent thereafter, compounded annually, from the end of each fiscal year of the 
222.35 	leave or the break in service to the end of the month in which the payment is received. Upon 
223.1 	payment, the employee must be granted allowable service credit for the purchased period; 
223.2 	or
223.3 	(9) a period specified under section 353.0162.
223.4 	(b) No member may receive more than 12 months of allowable service credit in a year 
223.5 	either for vesting purposes or for benefit calculation purposes.
223.6 	(c) For an active member who was an active member of the former Minneapolis 
223.7 	Firefighters Relief Association on December 29, 2011, "allowable service" is the period of 
223.8 	service credited by the Minneapolis Firefighters Relief Association as reflected in the 
223.9 	transferred records of the association up to December 30, 2011, and the period of service 
223.10 	credited under paragraph (a), clause (1), after December 30, 2011. For an active member 
223.11 	who was an active member of the former Minneapolis Police Relief Association on December 
223.12 	29, 2011, "allowable service" is the period of service credited by the Minneapolis Police 
223.13 	Relief Association as reflected in the transferred records of the association up to December 
223.14 	30, 2011, and the period of service credited under paragraph (a), clause (1), after December 
223.15 	30, 2011.

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

223.17 	Sec. 2. Minnesota Statutes 2016, section 353.012, is amended to read:
223.18 	353.012 UNIVERSITY OF MINNESOTA EMPLOYEES; FURLOUGH SERVICE 
223.19 	AND SALARY CREDIT.
223.20 	A furloughed employee of the University of Minnesota who is a member of the public 
223.21 	employees police and fire plan may obtain allowable service and salary credit for the furlough 
223.22 	period. The allowable service and salary credit authorization is a leave of absence 
223.23 	authorization for purposes of section 353.0161 and the purchase payment procedure of 
223.24 	section 353.0161, subdivision 2, applies 353.0162.

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

223.26 	Sec. 3. Minnesota Statutes 2016, section 353.32, subdivision 4, is amended to read:
223.27 		Subd. 4.Lack, or death, of beneficiary. If a member or former member dies without 
223.28 	having designated a beneficiary or if the beneficiary should die before making application 
223.29 	for refund, and if there is no surviving spouse, and if the legal representative of such member 
223.30 	or former member does not apply for refund within five years from the date of death of the 
223.31 	member or former member, the accumulated deductions to the member or former member's 
224.1 	credit at the time of death shall be disposed of in the manner provided in section 353.34, 
224.2 	subdivision 6 356.631.

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

224.4 	Sec. 4. Minnesota Statutes 2016, section 354A.011, subdivision 29, is amended to read:
224.5 		Subd. 29.Vesting; vested. (a) "Vesting" or "vested" means having entitlement to a 
224.6 	nonforfeitable annuity or benefit from athe St. Paul Teachers Retirement Fund Association 
224.7 	coordinated member program administered by a teachers retirement fund association by 
224.8 	having credit for sufficient allowable service under paragraph (b) or (c), whichever applies
224.9 	when the teacher has accrued credit for at least three years of allowable service.
224.10 	(b) For purposes of qualifying for an annuity or a benefit as a coordinated plan member 
224.11 	of the St. Paul Teachers Retirement Fund Association, the teacher is vested when the teacher 
224.12 	has accrued credit for at least three years of service.
224.13 	(c) For purposes of qualifying for an annuity or a benefit as a coordinated plan member 
224.14 	of the Duluth Teachers Retirement Fund Association:
224.15 	(1) a teacher who first became a member of the plan before July 1, 2010, is vested when 
224.16 	the teacher has accrued at least three years of service; and
224.17 	(2) a teacher who first became a member of the plan after June 30, 2010, is vested when 
224.18 	the teacher has accrued at least five years of service.

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

224.20 	Sec. 5. Minnesota Statutes 2016, section 354A.095, is amended to read:
224.21 	354A.095 PARENTAL AND MATERNITY LEAVE.
224.22 	Basic or coordinated members of the St. Paul Teachers Retirement Fund Association 
224.23 	and new coordinated members of the Duluth Teachers Retirement Fund Association, who 
224.24 	are granted parental or maternity leave of absence by the employing authority, are entitled 
224.25 	to obtain service credit not to exceed one year for the period of leave upon payment to the 
224.26 	applicable fund by the end of the fiscal year following the fiscal year in which the leave of 
224.27 	absence terminated. The amount of the payment must include the total required employee 
224.28 	and employer contributions for the period of leave prescribed in section 354A.12. Payment 
224.29 	must be based on the member's average monthly salary rate upon return to teaching service, 
224.30 	and is payable without interest. Payment must be accompanied by a certified or otherwise 
225.1 	adequate copy of the resolution or action of the employing authority granting or approving 
225.2 	the leave.

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

225.4 	Sec. 6. Minnesota Statutes 2016, section 354A.12, subdivision 3c, is amended to read:
225.5 		Subd. 3c.Termination of supplemental contributions and direct matching and state 
225.6 	aid. (a) The supplemental contributions payable to the St. Paul Teachers Retirement Fund 
225.7 	Association by Independent School District No. 625 under section 423A.02, subdivision 3, 
225.8 	and all forms of aid under subdivision 3a to the St. Paul Teachers Retirement Fund 
225.9 	Association must continue until the actuarial value of assets of the fund equal or exceed the 
225.10 	actuarial accrued liability of the fund as determined in the most recent actuarial report for 
225.11 	the fund by the actuary retained under section 356.214 or until the established date for full 
225.12 	funding under section 356.215, subdivision 11, whichever occurs earlier.
225.13 	(b) The aid to the Duluth Teachers Retirement Fund Association under section 423A.02, 
225.14 	subdivision 3, and all forms of state aid under subdivision 3a to the Duluth Teachers 
225.15 	Retirement Fund Association must continue until the current assets of the fund equal or 
225.16 	exceed the actuarial accrued liability of the fund as determined in the most recent actuarial 
225.17 	report for the fund by the actuary retained under section 356.214 or until the established 
225.18 	date for full funding under section 356.215, subdivision 11, whichever occurs earlier.

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

225.20 	Sec. 7. Minnesota Statutes 2016, section 354A.31, subdivision 3, is amended to read:
225.21 		Subd. 3.Resumption of teaching after commencement of a retirement annuity. (a) 
225.22 	Any person who retired and is receiving a coordinated program retirement annuity under 
225.23 	the provisions of sections 354A.31 to 354A.41 or any person receiving a basic program 
225.24 	retirement annuity under the governing sections in the articles of incorporation or bylaws 
225.25 	and who has resumed teaching service for the school district in which the teachers retirement 
225.26 	fund association exists is entitled to continue to receive retirement annuity payments, except 
225.27 	that all or a portion of the annuity payments must be deferred during the calendar year 
225.28 	immediately following the calendar year in which the person's salary from the teaching 
225.29 	service is in an amount greater than $46,000. The amount of the annuity deferral is one-third 
225.30 	the salary amount in excess of $46,000 and must be deducted from the annuity payable for 
225.31 	the calendar year immediately following the calendar year in which the excess amount was 
225.32 	earned.
226.1 	(b) If the person is retired for only a fractional part of the calendar year during the initial 
226.2 	year of retirement, the maximum reemployment salary exempt from triggering a deferral 
226.3 	as specified in this subdivision must be prorated for that calendar year.
226.4 	(c) After a person has reached the Social Security normal retirement age, no deferral 
226.5 	requirement is applicable regardless of the amount of any compensation received for teaching 
226.6 	service for the school district in which the teachers retirement fund association exists.
226.7 	(d) The amount of the retirement annuity deferral must be handled or disposed of as 
226.8 	provided in section 356.47.
226.9 	(e) Notwithstanding other paragraphs of this subdivision, for any retired Duluth Teachers 
226.10 	Retirement Fund Association member whose effective date of retirement is after June 30, 
226.11 	2013, amounts specified as deferred under this subdivision must instead be forfeited to the 
226.12 	Duluth Teachers Retirement Fund Association fund.
226.13 	(f)(e) Notwithstanding other paragraphs of this subdivision, for any retired St. Paul 
226.14 	Teachers Retirement Fund Association basic or coordinated program member whose effective 
226.15 	date of retirement is after June 30, 2013, amounts specified as deferred under this subdivision 
226.16 	must instead be forfeited to the St. Paul Teachers Retirement Fund Association fund.
226.17 	(g)(f) For the purpose of this subdivision, salary from teaching service includes: (i) all 
226.18 	income for services performed as a consultant or independent contractor; or income resulting 
226.19 	from working with the school district in any capacity; and (ii) the greater of either the income 
226.20 	received or an amount based on the rate paid with respect to an administrative position, 
226.21 	consultant, or independent contractor in the school district in which the teachers retirement 
226.22 	fund association exists and at the same level as the position occupied by the person who 
226.23 	resumes teaching service.
226.24 	(h)(g) On or before February 15 of each year, each applicable employing unit shall 
226.25 	report to the teachers retirement fund association the amount of postretirement salary as 
226.26 	defined in this subdivision, earned as a teacher, consultant, or independent contractor during 
226.27 	the previous calendar year by each retiree of the teachers retirement fund association for 
226.28 	teaching service performed after retirement. The report must be in a format approved by 
226.29 	the executive secretary or director.

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

226.31 	Sec. 8. Minnesota Statutes 2016, section 354A.35, subdivision 2, is amended to read:
226.32 		Subd. 2.Death while eligible to retire; surviving spouse optional annuity. (a) The 
226.33 	surviving spouse of a vested coordinated member who dies prior to retirement may elect to 
227.1 	receive, instead of a refund with interest under subdivision 1, an annuity equal to the 100 
227.2 	percent joint and survivor annuity the member could have qualified for had the member 
227.3 	terminated service on the date of death. The surviving spouse eligible for a surviving spouse 
227.4 	benefit under this paragraph may apply for the annuity at any time after the date on which 
227.5 	the deceased employee would have attained the required age for retirement based on the 
227.6 	employee's allowable service. A surviving spouse eligible for surviving spouse benefits 
227.7 	under paragraph (b) or (c) may apply for an annuity at any time after the member's death. 
227.8 	The member's surviving spouse shall be paid a joint and survivor annuity under section 
227.9 	354A.32 and computed under section 354A.31.
227.10 	(b) If the member was under age 55 and has credit for at least 30 years of allowable 
227.11 	service on the date of death, the surviving spouse may elect to receive a 100 percent joint 
227.12 	and survivor annuity based on the age of the member and surviving spouse on the date of 
227.13 	death. The annuity is payable using the full early retirement reduction under section 354A.31, 
227.14 	subdivision 6, paragraph (a), to age 55 and one-half of the early retirement reduction from 
227.15 	age 55 to the age payment begins.
227.16 	(c) If a vested member of the Duluth Teachers Retirement Fund Association was under 
227.17 	age 55 on the date of death but did not yet qualify for retirement, the surviving spouse may 
227.18 	elect to receive the 100 percent joint and survivor annuity based on the age of the member 
227.19 	and the survivor at the time of death. The annuity is payable using the full early retirement 
227.20 	reduction under section 354A.31, subdivision 6 or 7, to age 55 and one-half of the early 
227.21 	retirement reduction from age 55 to the date payment begins.
227.22 	(d)(c) If a vested member of the St. Paul Teachers Retirement Fund Association was 
227.23 	under age 55 on the date of death but did not yet qualify for retirement, the surviving spouse 
227.24 	may elect to receive the 100 percent joint and survivor annuity based on the age of the 
227.25 	member and the survivor at the time of death. The annuity is payable using the full early 
227.26 	retirement reduction under section 354A.31, subdivision 6 or 7, to age 55 and one-half of 
227.27 	the actuarial equivalent reduction from age 55 to the date payment begins. The actuarial 
227.28 	equivalent reduction is calculated so that the reduced annuity is the actuarial equivalent of 
227.29 	the annuity that would be payable to the member if the member deferred receipt of the 
227.30 	annuity and the annuity amount were augmented at an annual rate of 2.5 percent compounded 
227.31 	annually from the day the annuity begins to accrue until the normal retirement age.
227.32 	(e)(d) Sections 354A.37, subdivision 2, and 354A.39 apply to a deferred annuity or 
227.33 	surviving spouse benefit payable under this section. The benefits are payable for the life of 
227.34 	the surviving spouse, or upon expiration of the term certain benefit payment under subdivision 
227.35 	2b.

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

228.2 	Sec. 9. Minnesota Statutes 2016, section 356.47, subdivision 1, is amended to read:
228.3 		Subdivision 1.Application. (a) This section applies to the balance of annual retirement 
228.4 	annuities on the amount of retirement annuity reductions after reemployed annuitant earnings 
228.5 	limitations for retirement plans governed by section 352.115, subdivision 10; 353.37; or 
228.6 	354.44, subdivision 5.
228.7 	(b) This section also applies to the balance of annual retirement annuities on the amount 
228.8 	of retirement annuity reductions under section 354A.31, subdivision 3, for members of the 
228.9 	Duluth Teachers Retirement Fund Association whose effective date of retirement is before 
228.10 	July 1, 2013.
228.11 	(c)(b) This section also applies to the balance of annual retirement annuities on the 
228.12 	amount of retirement annuity reductions under section 354A.31, subdivision 3, for members 
228.13 	of the St. Paul Teachers Retirement Fund Association whose effective date of retirement is 
228.14 	before July 1, 2013.

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

228.16 	Sec. 10. Minnesota Statutes 2016, section 423A.02, subdivision 5, is amended to read:
228.17 		Subd. 5.Termination of state aid programs. The amortization state aid and additional 
228.18 	amortization state aid programs terminate as of the December 31, next following the date 
228.19 	of the actuarial valuation when the assets of the St. Paul Teachers Retirement Fund 
228.20 	Association equal the actuarial accrued liability of that plan or when the assets of the Duluth 
228.21 	Teachers Retirement Fund Association equal the actuarial accrued liability of that plan, 
228.22 	whichever is later.

228.23 	Sec. 11.  REPEALER.
 228.24 	Minnesota Statutes 2016, section 354A.12, subdivision 2c, is repealed.

228.25 	ARTICLE 21
228.26 	APPROPRIATIONS

228.27 	Section 1. APPROPRIATIONS; GENERAL FUND PENSION CONTRIBUTION 
228.28 	INCREASES.
 228.29 	(a) $5,698,000 in fiscal year 2018 and $11,115,000 in fiscal year 2019 are appropriated 
228.30 	from the general fund to the entities specified in paragraph (b) to offset employer pension 
229.1 	contribution increases to executive branch state agencies, boards, commissions, constitutional 
229.2 	offices, and the legislature required under this act. These appropriations are for increases 
229.3 	in employer contributions to the Minnesota State Retirement System general employees, 
229.4 	correctional employees, and state patrol retirement plans. The base for fiscal year 2020 and 
229.5 	later is $11,115,000.
229.6 	(b) The commissioner of management and budget must determine an allocation of the 
229.7 	amount appropriated in paragraph (a) for each executive branch state agency, board, 
229.8 	commission, constitutional office, and the legislature for each fiscal year. Each allocation 
229.9 	is directly appropriated to each of these entities as specified by the commissioner. The 
229.10 	amounts appropriated in fiscal year 2019 are added to agency budget bases for fiscal year 
229.11 	2020 and later. The commissioner of management and budget must report the amounts 
229.12 	appropriated under this section to the chairs and ranking minority members of the house of 
229.13 	representatives Ways and Means Committee and the senate Finance Committee by August 
229.14 	15, 2017.

229.15 	Sec. 2. APPROPRIATIONS; NONGENERAL FUND PENSION CONTRIBUTION 
229.16 	INCREASES.
 229.17 	(a) The amounts necessary to pay increased nongeneral fund employer contribution 
229.18 	increases in this act in fiscal years 2018 and 2019 are appropriated from any nongeneral 
229.19 	fund that is specified by the commissioner of management and budget under paragraph (b). 
229.20 	These appropriations shall offset employer pension contribution increases to executive 
229.21 	branch state agencies, boards, and commissions required under this act. These appropriations 
229.22 	are for increases in employer contributions to the Minnesota State Retirement System general 
229.23 	employees, correctional employees, and state patrol retirement plans.
229.24 	(b) The commissioner of management and budget must determine the appropriate fund 
229.25 	and amount required under paragraph (a) for each executive branch state agency, board, 
229.26 	and commission, for each fiscal year. The amounts appropriated in fiscal year 2019 are 
229.27 	added to agency budget bases for fiscal year 2020 and later. The commissioner of 
229.28 	management and budget must report the amounts appropriated under this section to the 
229.29 	chairs and ranking minority members of the house of representatives Ways and Means 
229.30 	Committee and the senate Finance Committee by August 15, 2017.

229.31 	Sec. 3. APPROPRIATIONS; ST. PAUL TEACHERS RETIREMENT FUND.
 229.32 	$1,950,000 in fiscal year 2018 and $3,250,000 in fiscal year 2019 are appropriated from 
229.33 	the general fund to the commissioner of management and budget for payment to the St. 
230.1 	Paul Teachers Retirement Fund Association for increased pension contributions. The base 
230.2 	in fiscal year 2020 is $5,200,000 and the base for fiscal year 2021 and later is $6,500,000.

230.3 	Sec. 4. APPROPRIATIONS; JUDICIAL BRANCH.
 230.4 	(a) $73,000 in fiscal year 2018 and $146,000 in fiscal year 2019 are appropriated from 
230.5 	the general fund to the Supreme Court for increased employer pension contributions to the 
230.6 	Minnesota State Retirement System general employees plan. The amount appropriated in 
230.7 	fiscal year 2019 is added to the agency budget base for fiscal years 2020 and later.
230.8 	(b) $15,000 in fiscal year 2018 and $30,000 in fiscal year 2019 are appropriated from 
230.9 	the general fund to the Court of Appeals for increased employer pension contributions to 
230.10 	the Minnesota State Retirement System general employees plan. The amount appropriated 
230.11 	in fiscal year 2019 is added to the agency budget base for fiscal years 2020 and later.
230.12 	(c) $344,000 in fiscal year 2018 and $687,000 in fiscal year 2019 are appropriated from 
230.13 	the general fund to the district courts for increased employer pension contributions to the 
230.14 	Minnesota State Retirement System general employees plan. The amount appropriated in 
230.15 	fiscal year 2019 is added to the agency budget base for fiscal years 2020 and later.
230.16 	(d) $139,000 in fiscal year 2018 and $279,000 in fiscal year 2019 are appropriated from 
230.17 	the general fund to the Board of Public Defense for increased employer pension contributions 
230.18 	to the Minnesota State Retirement System general employees plan. The amount appropriated 
230.19 	in fiscal year 2019 is added to the agency budget base for fiscal years 2020 and later.
230.20 	(e) $31,000 in fiscal year 2018 and $62,000 in fiscal year 2019 are appropriated from 
230.21 	the general fund to the Guardian ad Litem Board for increased employer pension 
230.22 	contributions to the Minnesota State Retirement System general employees plan. The amount 
230.23 	appropriated in fiscal year 2019 is added to the agency budget base for fiscal years 2020 
230.24 	and later.
230.25 	(f) $1,000 in fiscal year 2019 is appropriated from the general fund to the Board of 
230.26 	Judicial Standards for increased employer pension contributions to the Minnesota State 
230.27 	Retirement System general employees plan. The amount appropriated in fiscal year 2019 
230.28 	is added to the agency budget base for fiscal years 2020 and later.

230.29 	Sec. 5. APPROPRIATIONS; TEACHERS RETIREMENT ASSOCIATION AGENCY 
230.30 	COSTS.
 230.31 	(a) $29,000 in fiscal year 2018 and $57,000 in fiscal year 2019 are appropriated from 
230.32 	the general fund to the Department of Education for increased employer pension contributions 
231.1 	to the Teachers Retirement Association. The amount appropriated in fiscal year 2019 is 
231.2 	added to the agency budget base for fiscal years 2020 and later.
231.3 	(b) $10,000 in fiscal year 2018 and $19,000 in fiscal year 2019 are appropriated from 
231.4 	the general fund to the Minnesota State Academies for increased employer pension 
231.5 	contributions to the Teachers Retirement Association. The amount appropriated in fiscal 
231.6 	year 2019 is added to the agency budget base for fiscal years 2020 and later.
231.7 	(c) $8,000 in fiscal year 2018 and $15,000 in fiscal year 2019 are appropriated from the 
231.8 	general fund to the Perpich Center for the Arts for increased employer pension contributions 
231.9 	to the Teachers Retirement Association. The amount appropriated in fiscal year 2019 is 
231.10 	added to the agency budget base for fiscal years 2020 and later.

APPENDIX 

Repealed Minnesota Statutes: S0545-3 

3A.12 COVERAGE BY MORE THAN ONE RETIREMENT SYSTEM OR ASSOCIATION.Subdivision 1.Entitlement to annuity. 
(a) Any legislator who has been a member of a retirement plan listed in paragraph (b) is entitled, when otherwise qualified, to a retirement allowance or annuity from each plan if the total allowable service in all plans or in any two of these plans totals ten or more years. 

(b) This section applies to any retirement plan or program administered by the Minnesota State Retirement System, or any retirement plan administered by the Public Employees Retirement Association, including the Public Employees Retirement Association police and fire fund, or the Teachers Retirement Association, or the Minneapolis employees retirement plan, or the State Patrol retirement plan, or any other public employee retirement system in the state of Minnesota having a like provision. 

(c) This section does not apply to other retirement plans providing benefits for police or firefighters. 

(d) No portion of the allowable service upon which the retirement annuity from one plan is based is again used in the computation for benefits from another plan. The annuity from each plan must be determined by the appropriate provisions of the law, except that the requirement that a person must have a minimum number of years of allowable service in the respective system or association does not apply for the purposes of this section if the combined service in two or more of these plans equals ten or more years. The augmentation of deferred annuities provided in section 3A.02, subdivision 4, applies to the annuities accruing under this section. 

Subd. 2.Refund repayment. 
A former legislator who has received a refund as provided in section 3A.03, subdivision 2, who is a currently contributing member of a retirement plan specified in subdivision 1, paragraph (b), may repay the refund as provided in section 3A.03, subdivision 2. A member of the legislature who has received a refund from any of the retirement plans specified in subdivision 1 may repay the refund to the respective plan under such terms and conditions consistent with the law governing the retirement plan if the law governing the plan permits the repayment of refunds. If the total amount to be repaid, including principal and interest exceeds $2,000, repayment maybe made in three equal installments over a period of 18 months, with the interest accrued during the period of the repayment added to the final installment. 

352.04 STATE EMPLOYEES RETIREMENT FUND, CONTRIBUTIONS BY EMPLOYEE AND EMPLOYER.Subd. 11.Gifts and bequests. 
The director may credit to the retirement fund any money received in the form of donations, gifts, appropriations, bequests, or otherwise, or derived from it. 

352.045 PROCEDURE FOR REVISING EMPLOYEE AND EMPLOYER CONTRIBUTIONS IN CERTAIN INSTANCES.Subdivision 1.Application. 
This section applies to the general state employees retirement plan established under this chapter, the correctional state employees retirement plan established under this chapter, and the state patrol retirement plan established under chapter 352B. 

Subd. 2.Determination. 
For purposes of this section, a contribution sufficiency exists if, for the applicable plan, the total of the employee contributions, the employer contributions, and any additional employer contributions, if applicable, exceeds the total of the normal cost, the administrative expenses, and the amortization contribution of the retirement plan as reported in the most recent actuarial valuation of the retirement plan prepared by the approved actuary retained under section 356.214 and prepared under section 356.215 and the standards for actuarial work of the Legislative Commission on Pensions and Retirement. For purposes of this section, a contribution deficiency exists if, for the applicable plan, the total employee contributions, employer contributions, and any additional employer contributions are less than the total of the normal cost, the administrative expenses, and the amortization contribution of the retirement plan as reported in the most recent actuarial valuation of the retirement plan prepared by the approved actuary retained under section 356.214 and prepared under section 356.215 and the standards for actuarial work of the Legislative Commission on Pensions and Retirement. 

Subd. 3a.Contribution rate revision; general state employees retirement plan. 
(a) Notwithstanding the contribution rates as specified in law governing the applicable retirement plan, the board of directors of the Minnesota State Retirement System may adjust the employee and employer contribution rates for the general state employees retirement plan if the regular actuarial valuation of the plan prepared under section 356.215 indicates that there is a contribution sufficiency greater than one percent of covered payroll or that there is a contribution deficiency under subdivision 2 equal to or greater than one-half of one percent of covered payroll. 

(b) If the actuarially determined contribution of the plan is less than the total support provided by the combined employee and employer contribution rates by more than one percent of covered payroll, the plan employee and employer contribution rates may be decreased incrementally over one or more years to a level such that there remains a contribution sufficiency of at least one percent of covered payroll. Any decrease in employee and employer contribution rates must not result in total contributions that are less than the sum of the normal cost and administrative expenses of the retirement plan. 

(c) If the actuarially required contribution exceeds the total support provided by the employee and employer contribution rates, the board of directors may increase the employee and employer contribution rates equally to eliminate that contribution deficiency. 

(d) To determine if an adjustment is to be made, the board of directors shall consult with the approved actuary retained under section 356.214 and shall take into consideration factors that include, but are not limited to, the contribution rates calculated based on the actuarial value of assets and calculated based on the market value of assets; the funded ratio calculated based on the actuarial value of assets; the funded ratio calculated based on the market value of assets; the remaining number of years to the amortization target date; the recent experience of the investment markets; and the results of the 30-year funding, disbursements, and contribution projections prepared every other year as required under the standards for actuarial work adopted by the Legislative Commission on Pensions and Retirement. 

(e) Any adjustment to the contribution rates must be reported to the chair and the executive director of the Legislative Commission on Pensions and Retirement by January 15 following receipt of the most recent annual actuarial valuation prepared under section 356.215. The report must include draft legislation to revise the employee and employer contributions stated in plan law. If the Legislative Commission on Pensions and Retirement does not recommend against the rate change or does not recommend a modification in the rate change, the adjustment becomes effective on the first day of the first full payroll period in the fiscal year following receipt of the most recent actuarial valuation that gave rise to the adjustment. 

(f) A contribution sufficiency of up to one percent of covered payroll must be held in reserve to be used to offset any future actuarially determined contributions that are more than the total combined employee and employer contributions. 

(g) Before any reduction in contributions to eliminate a sufficiency in excess of one percent of covered pay may be made, the executive director must review any need for a change in actuarial assumptions, as recommended by the approved actuary retained under section 356.214 in the most recent experience study of the general employees retirement plan prepared under section 356.215 and the standards for actuarial work promulgated by the Legislative Commission on Pensions and Retirement that may result in an increase in the actuarially determined contribution and must report to the Legislative Commission on Pensions and Retirement any decision by the board to use the sufficiency exceeding one percent of covered payroll to offset the impact of an actuarial assumption change recommended by the actuary retained under section 356.214, subdivision 1, and reviewed by the actuary retained by the commission under section 356.214, subdivision 4. 

(h) No contribution sufficiency in excess of one percent of covered pay may be proposed to be used to increase benefits, and no benefit increase may be proposed that would initiate an adjustment to increase contributions under this subdivision. Any proposed benefit improvement must include a recommendation, prepared by the approved actuary retained under section 356.214, subdivision 1, and reviewed by the actuary retained by the Legislative Commission on Pensions and Retirement as provided under section 356.214, subdivision 4, on how the benefit modification will be funded. 

Subd. 3b.Contribution rate revision; correctional state employees retirement plan and State Patrol retirement plan. 
(a) Subdivision 3a applies to the correctional state employees retirement plan under this chapter and to the State Patrol retirement plan established under chapter 352B, except as specified in paragraph (b) or (c). 

(b) Any limitations on the amount of contribution rate changes stated in subdivision 3a apply only to the amount of the employee contribution revision. The employer contribution for the correctional state employees retirement plan or the State Patrol retirement plan, whichever is applicable, must be adjusted so that the employer contribution is equal to 60 percent of the sum of employee plus employer contributions. 

(c) For the State Patrol retirement plan, a contribution sufficiency of up to two percent of covered payroll, rather than one percent, may be held in reserves without taking action to reduce employee and employer contributions. 

352.72 COVERAGE BY MORE THAN ONE RETIREMENT SYSTEM.Subdivision 1.Entitlement to annuity. 
(a) Any person who has been an employee covered by a retirement system listed in paragraph (b) is entitled when qualified to an annuity from each fund if total allowable service in all funds or in any two of these funds totals three or more years if employed before July 1, 2010, or totals five or more years if employed after June 30, 2010. 

(b) This section applies to the Minnesota State Retirement System, the Public Employees Retirement Association including the Public Employees Retirement Association police and fire fund, the Teachers Retirement Association, the State Patrol Retirement Association, or any other public employee retirement system in the state with a similar provision, except as noted in paragraph (c). 

(c) This section does not apply to other funds providing benefits for police officers or firefighters. 

(d) No portion of the allowable service upon which the retirement annuity from one fund is based shall be again used in the computation for benefits from another fund. No refund may have been taken from any one of these funds since service entitling the employee to coverage under the system or the employee's membership in any of the associations last terminated. The annuity from each fund must be determined by the appropriate provisions of the law except that the requirement that a person must have at least a specific number of years of allowable service in the respective system or association does not apply for the purposes of this section if the combined service in two or more of these funds equals at least the longest period of allowable service of any of the applicable retirement plans. 

Subd. 2.Computation of deferred annuity. 
(a) The deferred annuity, if any, accruing under subdivision 1, or section 352.22, subdivision 3, must be computed as provided in section 352.22, subdivision 3, on the basis of allowable service before termination of state service and augmented as provided herein. The required reserves applicable to a deferred annuity or to an annuity for which a former employee was eligible but had not applied or to any deferred segment of an annuity must be determined as of the date the benefit begins to accrue and augmented by interest compounded annually from the first day of the month following the month in which the employee ceased to be a state employee, or July 1, 1971, whichever is later, to the first day of the month in which the annuity begins to accrue. The rates of interest used for this purpose must be five percent compounded annually until January 1, 1981, and three percent compounded annually thereafter until January 1 of the year following the year in which the former employee attains age 55 or until January 1, 2012, whichever is earlier, and from the January 1 next following the attainment of age 55 to the effective date of retirement or until January 1, 2012, whichever is earlier, five percent compounded annually if the employee became an employee before July 1, 2006, 2.5 percent compounded annually until January 1, 2012, if the employee becomes an employee after June 30, 2006, and two percent compounded annually after December 31, 2011, irrespective of when the employee became a state employee. If a person has more than one period of uninterrupted service, the required reserves related to each period must be augmented by interest under this subdivision. The sum of the augmented required reserves so determined is the present value of the annuity. "Uninterrupted service" for the purpose of this subdivision means periods of covered employment during which the employee has not been separated from state service for more than two years. If a person repays a refund, the service restored by the repayment must be considered continuous with the next period of service for which the employee has credit with this system. The formula percentages used for each period of uninterrupted service must be those applicable to a new employee. The mortality table and interest assumption used to compute the annuity must be those in effect when the employee files application for annuity. This section does not reduce the annuity otherwise payable under this chapter. 

(b) The retirement annuity or disability benefit of, or the survivor benefit payable on behalf of, a former state employee who terminated service before July 1, 1997, which is not first payable until after June 30, 1997, must be increased on an actuarial equivalent basis to reflect the change in the postretirement interest rate actuarial assumption under section 356.215, subdivision 8, from five percent to six percent under a calculation procedure and the tables adopted by the board and approved by the actuary retained under section 356.214. 

Subd. 4.Refund repayment. 
Any person who has received a refund from the state employees retirement fund, and who is a member of a public retirement system included in subdivision 1, may repay the refund with interest to the state employees retirement fund. If a refund is repaid to the fund and more than one refund has been received from the fund, all refunds must be repaid. Repayment must be made as provided in section 352.23, and under terms and conditions consistent with that section as agreed upon with the director. 

Subd. 5.Early retirement. 
The requirements and provisions for retirement before normal retirement age in sections 352.115, subdivision 1, and 352.116 also apply to an employee fulfilling the requirements with a combination of service as provided in subdivision 1. 

352B.30 COVERAGE BY MORE THAN ONE RETIREMENT SYSTEM OR ASSOCIATION.Subdivision 1.Entitlement to annuity. 
Any person who has been an employee covered by the Minnesota State Retirement System, or a member of the Public Employees Retirement Association including the Public Employees Retirement Association Police and Fire Fund, or the Teachers Retirement Association, or the State Patrol retirement fund, or any other public employee retirement system in Minnesota having a like provision but excluding all other funds providing benefits for police or firefighters is entitled when qualified to an annuity from each fund if total allowable service in all funds or in any two of these funds totals the number of years of allowable service required by the applicable retirement plan with the longest vesting period for the person. No part of the allowable service upon which the retirement annuity from one fund is based may again be used in the computation for benefits from another fund. The member must not have taken a refund from any one of these funds since service entitling the member to coverage under the system or membership in any of the associations last terminated. The annuity from each fund must be determined by the appropriate law except that the requirement that a person must have at least a specific number of years allowable service in the respective system or association does not apply for the purposes of this section if the combined service in two or more of these funds equals the number of years of allowable service required by the applicable retirement plan with the longest vesting period for the person. 

Subd. 2.Computation of deferred annuity. 
Deferred annuities must be computed according to this chapter on the basis of allowable service before termination of service and augmented as provided in this chapter. The required reserves applicable to a deferred annuity must be augmented by interest compounded annually from the first day of the month following the month in which the member terminated service, or July 1, 1971, whichever is later, to the first day of the month in which the annuity begins to accrue. The rates of interest used for this purpose must be five percent per year compounded annually until January 1, 1981, three percent per year compounded annually after January 1, 1981, until January 1, 2012, if the employee became an employee before July 1, 2006, 2.5 percent compounded annually if the employee becomes an employee after June 30, 2006, and two percent per year compounded annually after December 31, 2011, irrespective of when the employee was first employed. The mortality table and interest assumption used to compute the annuity must be those in effect when the member files application for annuity. 

Subd. 3.Refund repayment. 
A person who has received a refund from the State Patrol retirement fund who is a member of a public retirement system included in subdivision 1, may repay the refund with interest to the State Patrol retirement fund as provided in section 352B.11, subdivision 4. 

Subd. 4.1997 postretirement fund interest changes. 
The retirement annuity or disability benefit of, or the survivor benefit payable on behalf of, a former member who terminated service before July 1, 1997, which is not first payable until after June 30, 1997, must be increased on an actuarial equivalent basis to reflect the change in the postretirement interest rate actuarial assumption under section 356.215, subdivision 8, from five percent to six percent under a calculation procedure and tables adopted by the board and approved by the actuary retained under section 356.214. 

353.0161 AUTHORIZED LEAVE OF ABSENCE SERVICE CREDIT PURCHASE PROCEDURE.Subdivision 1.Application. 
This section applies to employees covered by any plan specified in this chapter or chapter 353E for any period of authorized leave of absence specified in section 353.01, subdivision 16, paragraph (a), clause (5), for which the employee obtains credit for allowable service by making payment as specified in this section to the applicable fund. 

Subd. 2.Purchase procedure. 
(a) An employee covered by a plan specified in subdivision 1 may purchase credit for allowable service in that plan for a period specified in subdivision 1 if the employee makes a payment as specified in paragraph (b) or (c), whichever applies. The employing unit, at its option, may pay the employer portion of the amount specified in paragraph (b) on behalf of its employees. 

(b) If payment is received by the executive director within one year from the date the member returned to work following the authorized leave, or within 30 days after the date of termination of public service if the member did not return to work, the payment amount is equal to the employee and employer contribution rates specified in law for the applicable plan at the end of the leave period, or at termination of public service, whichever is earlier, multiplied by the employee's average monthly salary, excluding overtime, upon which deductions were paid during the six months, or portion thereof, before the commencement of the leave of absence and by the number of months of the leave of absence for which the employee wants allowable service credit. Payments made under this paragraph must include compound interest at the monthly rate of 0.71 percent until June 30, 2015, and 0.667 percent per month thereafter from the last day of the leave period until the last day of the month in which payment is received. 

(c) If payment is received by the executive director after one year, the payment amount is the amount determined under section 356.551. Payment under this paragraph must be made before the date the person terminates public service under section 353.01, subdivision 11a. 

Subd. 3.Restriction on subsequent purchases. 
To purchase salary credit or service credit for a subsequent authorized leave of absence period, the member must return to public service and render a minimum of three months of allowable service credit. 

353.27 GENERAL EMPLOYEES RETIREMENT FUND.Subd. 3b.Change in employee and employer contributions in certain instances. 
(a) For purposes of this section: 

(1) a contribution sufficiency exists if the total of the employee contribution under subdivision 2, the employer contribution under subdivision 3, the additional employer contribution under subdivision 3a, and any additional contribution previously imposed under this subdivision exceeds the total of the normal cost, the administrative expenses, and the amortization contribution of the general employees retirement plan as reported in the most recent actuarial valuation of the retirement plan prepared by the actuary retained under section 356.214 and prepared under section 356.215 and the standards for actuarial work of the Legislative Commission on Pensions and Retirement; and 

(2) a contribution deficiency exists if the total of the employee contributions under subdivision 2, the employer contributions under subdivision 3, the additional employer contribution under subdivision 3a, and any additional contribution previously imposed under this subdivision is less than the total of the normal cost, the administrative expenses, and the amortization contribution of the general employees retirement plan as reported in the most recent actuarial valuation of the retirement plan prepared by the actuary retained under section 356.214 and prepared under section 356.215 and the standards for actuarial work of the Legislative Commission on Pensions and Retirement. 

(b) Notwithstanding the contribution rate provision specified under subdivisions 2, 3, and 3a, the board of trustees of the Public Employees Retirement Association may adjust the employee and employer contributions to the general employees retirement plan under subdivisions 2 and 3 if the regular actuarial valuation of the general employees retirement plan of the Public Employees Retirement Association prepared under section 356.215 indicates that there is a contribution sufficiency under paragraph (a) greater than one percent of covered payroll or that there is a contribution deficiency under paragraph (a) equal to or greater than one-half of one percent of covered payroll. 

(c) If the actuarially determined contribution of the general employees retirement plan is less than the total support provided by the combined employee and employer contribution rates under subdivisions 2, 3, and 3a, by more than one percent of covered payroll, the general employees retirement plan coordinated program employee and employer contribution rates under subdivisions 2 and 3 may be decreased over one or more years to a level such that there remains a contribution sufficiency of at least one percent of covered payroll. Any decrease in employee and employer contribution rates must not result in total contributions that are less than the total of the normal cost of the retirement plan and the administrative expenses of the retirement plan. 

(d) If the actuarially determined contribution exceeds the total support provided by the combined employee and employer contribution rates under subdivisions 2, 3, and 3a, the board of trustees may increase the employee and matching employer contribution rates to eliminate that contribution deficiency. 

(e) To determine if an adjustment is to be made, the board of trustees shall consult with the approved actuary retained under section 356.214 and shall take into consideration factors that include, but are not limited to, the contribution rates based on actuarial value of assets and contribution rates based on the market value of assets; the funded ratio based on the actuarial value of assets and based on the market value of assets; the number of years remaining to the amortization target date; the recent experience of the investment markets; and the results of the 30-year funding, disbursements, and contributions projections prepared every other year as required under the standards for actuarial work adopted by the Legislative Commission on Pensions and Retirement. 

(f) Any adjustment to the contribution rates must be reported to the chair and the executive director of the Legislative Commission on Pensions and Retirement by January 15 following the receipt of the most recent annual actuarial valuation prepared under section 356.215. If the Legislative Commission on Pensions and Retirement does not recommend against the rate change or does not recommend a modification in the rate change, the recommended adjustment becomes effective for any salary paid on or after the January 1 next following the legislative session in which the Legislative Commission on Pensions and Retirement did not take any action to disapprove or modify the Public Employees Retirement Association Board of Trustees' adjustment to the employee and employer rates. 

(g) A contribution sufficiency of up to one percent of covered payroll must be held in reserve to be used to offset any future actuarially determined contributions that are more than the total combined employee and employer contributions under subdivisions 2, 3, and 3a. 

(h) Before any reduction in contributions to eliminate a sufficiency in excess of one percent of covered pay may be made, the executive director must review any need for a change in actuarial assumptions, as recommended by the actuary retained under section 356.214 in the most recent experience study of the general employees retirement plan prepared under section 356.215 and the standards for actuarial work promulgated by the Legislative Commission on Pensions and Retirement that may result in an increase in the actuarially determined contribution and must report to the Legislative Commission on Pensions and Retirement any decision by the board to use the sufficiency exceeding one percent of covered payroll to offset the impact of an actuarial assumption change recommended by the actuary retained under section 356.214, subdivision 1, and reviewed by the actuary retained by the commission under section 356.214, subdivision 4. 

(i) No contribution sufficiency in excess of one percent of covered pay may be proposed to be used to increase benefits, and no benefit increase may be proposed that would initiate an adjustment to increase contributions under this subdivision. Any proposed benefit improvement must include a recommendation, prepared by the approved actuary retained under section 356.214, subdivision 1, and reviewed by the actuary retained by the Legislative Commission on Pensions and Retirement as provided under section 356.214, subdivision 4, on how the benefit modification will be funded. 

353.34 RIGHTS UPON TERMINATION OF MEMBERSHIP.Subd. 6.Additions to fund. 
The board of trustees may credit to the general employees retirement fund any money received in the form of contributions, donations, gifts, appropriations, bequests, or otherwise. 

353.71 COVERAGE BY MORE THAN ONE RETIREMENT SYSTEM; DEFERRED ANNUITY; AUGMENTATION.Subdivision 1.Eligibility. 
Any person who has been a member of a defined benefit retirement plan administered by the Public Employees Retirement Association, or a retirement plan administered by the Minnesota State Retirement System, or the Teachers Retirement Association, or any other public retirement system in the state of Minnesota having a like provision, except a retirement plan providing benefits for police officers or firefighters governed by sections 424A.091 to 424A.096, or by Laws 2013, chapter 111, article 5, sections 31 to 42, is entitled, when qualified, to an annuity from each retirement plan if the total allowable service in all retirement plans or in any two of these retirement plans totals the number of years of allowable service required to receive a normal retirement annuity for that retirement plan, provided that no portion of the allowable service upon which the retirement annuity from one retirement plan is based is again used in the computation for benefits from another retirement plan and provided further that the person has not taken a refund from any one of these retirement plans since the person's membership in that association or system last terminated. The annuity from each fund must be determined by the appropriate provisions of the law except that the requirement that a person must have at least a specific minimum period of allowable service in the respective association or system does not apply for the purposes of this section if the combined service in two or more of these retirement plans equals the number of years of allowable service required to receive a normal retirement annuity for that retirement plan. 

354.42 CONTRIBUTIONS BY EMPLOYER AND EMPLOYEE.Subd. 4a.Determination. 
(a) For purposes of this section, a contribution sufficiency exists if the total of the employee contributions, the employer contributions, and any additional employer contributions, if applicable, exceeds the total of the normal cost, the administrative expenses, and the amortization contribution of the retirement plan as reported in the most recent actuarial valuation of the retirement plan prepared by the approved actuary retained under section 356.214 and prepared under section 356.215 and the standards for actuarial work of the Legislative Commission on Pensions and Retirement. 

(b) For purposes of this section, a contribution deficiency exists if the total of the employee contributions, the employer contributions, and any additional employer contributions are less than the total of the normal cost, the administrative expenses, and the amortization contribution of the retirement plan as reported in the most recent actuarial valuation of the retirement plan prepared by the approved actuary retained under section 356.214 and prepared under section 356.215 and the standards for actuarial work of the Legislative Commission on Pensions and Retirement. 

Subd. 4b.Contribution rate revision. 
(a) Notwithstanding the contribution rate provisions under subdivisions 2 and 3, the Board of Trustees of the Teachers Retirement Association may adjust the employee and employer contribution rates if the regular actuarial valuation of the plan under section 356.215 indicates that there is a contribution sufficiency under subdivision 4a equal to or greater than one percent of covered payroll or if the regular valuation of the plan under section 356.215 indicates that there is a deficiency equal to or greater than one-half of one percent of covered payroll. Any decrease in employee and employer contribution rates must not result in the total of contribution rates that is less than the total of normal cost and administrative expenses. 

(b) To determine if an adjustment is to be made, the board of trustees shall consult with the approved actuary retained under section 356.214 and shall take into consideration factors that include, but are not limited to, the contribution rates based on actuarial value of assets and contribution rates based on the market value of assets; the funded ratio based on the actuarial value of assets and based on the market value of assets; the number of years remaining to the amortization target date; the recent experience of the investment markets; and the results of the 30-year funding, disbursements, and contributions projections prepared every other year as required under the standards for actuarial work adopted by the Legislative Commission on Pensions and Retirement. 

Subd. 4c.Contribution sufficiency measures. 
(a) A contribution sufficiency of up to one percent of covered payroll must be held in reserve to be used to offset any future actuarially required contributions that are more than the total combined employee and employer contributions being collected. 

(b) Before any reduction in contributions to eliminate a sufficiency in excess of one percent of covered pay may be recommended, the executive director must review any need for a change in actuarial assumptions, as recommended by the actuary retained under section 356.214 in the most recent experience study of the retirement plan, that may result in an increase in the actuarially required contribution and must report to the Legislative Commission on Pensions and Retirement any recommendation by the board to use the sufficiency exceeding one percent of covered payroll to offset the impact of an actuarial assumption change recommended by the actuary retained under section 356.214, subdivision 1, and reviewed by the actuary retained by the commission under section 356.214, subdivision 4. 

(c) A contribution sufficiency in excess of one percent of covered pay must not be used to increase benefits, and a benefit increase must not be proposed that would initiate an automatic adjustment under this section to increase contributions. A proposed benefit improvement must include a recommendation, prepared by the actuary retained under section 356.214, subdivision 1, and reviewed by the actuary retained by the Legislative Commission on Pensions and Retirement, as provided under section 356.214, subdivision 4, on the manner in which the benefit modification is to be funded. 

Subd. 4d.Reporting; commission review. 
A contribution rate increase or decrease made under subdivision 4b must be reported to the chair and the executive director of the Legislative Commission on Pensions and Retirement on or before the next February 1 and, if the Legislative Commission on Pensions and Retirement does not recommend against the rate change or does not recommend a modification in the rate change, is effective on the next July 1 following the determination that a contribution deficiency or sufficiency exists based on the most recent actuarial valuation under section 356.215. 

354.60 SERVICE IN OTHER PUBLIC RETIREMENT FUNDS; ANNUITY.
Any person who has been a member of the Minnesota state retirement system or the Public Employees Retirement Association including the Public Employees Retirement Association police and fire fund or the Teachers Retirement Association or the Minnesota State Patrol Retirement Association, or any other public employee retirement system in the state of Minnesota having a like provision but excluding all other funds providing benefits for police officers or firefighters shall be entitled when qualified to an annuity from each fund if the person's total allowable service in all three funds or in any two of these funds totals three or more years, provided no portion of the allowable service upon which the retirement annuity from one fund is based is again used in the computation for benefits from another fund and provided further that the person has not taken a refund from any one of these three funds since the person's membership in that association has terminated. The annuity from each fund shall be determined by the appropriate provisions of the law except that the requirement that an annuitant have at least three years' membership service or three years of allowable service in the respective association shall not apply for the purposes of this section provided the combined service in two or more of these funds equals three or more years. 

354A.12 CONTRIBUTIONS BY EMPLOYEE AND EMPLOYER.Subd. 2c.Duluth Teachers Retirement Fund Association; employer contributions for reemployed annuitants. 
The school district shall make the regular employer contributions and additional employer contributions specified in subdivision 2a on behalf of any retired member of the Duluth Teachers Retirement Fund Association who is reemployed by Independent School District No. 709, including providing service to the school district as an independent contractor or as an employee of an independent contractor. 

354A.29 ST. PAUL TEACHERS RETIREMENT FUND ASSOCIATION POSTRETIREMENT ADJUSTMENT.Subd. 8.Calculation of postretirement adjustments; percentage based. 
(a) For purposes of computing postretirement adjustments for eligible benefit recipients of the St. Paul Teachers Retirement Fund Association, the accrued liability funding ratio based on the actuarial value of assets of the plan as determined by the two most recent actuarial valuations prepared under sections 356.214 and 356.215 determines the postretirement increase, as follows: 

		Funding ratio	Postretirement increase	
		Less than 80 percent	1 percent	
		At least 80 percent but less than 90 percent	2 percent	

(b) The amount determined under paragraph (a) is the full postretirement increase to be applied as a permanent increase to the regular payment of each eligible member on January 1 of the next calendar year. For any eligible member whose effective date of benefit commencement occurred after January 1 of the calendar year immediately before the postretirement increase is applied, the amount determined under paragraph (a) must be reduced by 50 percent. 

(c) If the accrued liability funding ratio based on the actuarial value of assets is at least 90 percent in two consecutive actuarial valuations, subsequent postretirement increases must be paid as specified in subdivision 9. 

(d) If, following a postretirement increase under paragraph (a), the accrued liability funding ratio, based on the actuarial value of assets, falls below 80 percent for two consecutive actuarial valuations, the applicable postretirement increase must be reduced to one percent until January 1 of the calendar year next following the date on which the requirements for an increase under paragraph (a) are again satisfied. 

Subd. 9.Calculation of postretirement adjustments. 
(a) This subdivision applies if the requirements of subdivision 8, paragraph (c), have been satisfied. 

(b) A percentage adjustment must be paid under this subdivision to eligible persons under subdivision 7. 

(c) The amount of 2.5 percent is the full postretirement adjustment to be applied as a permanent increase to the regular payment of each eligible member on January 1 of the next calendar year. For any eligible member whose effective date of benefit commencement occurred after January 1 of the calendar year immediately before the postretirement adjustment is applied, the postretirement adjustment amount must be reduced by 50 percent. 

(d) In the event the accrued liability funding ratio based on the actuarial value of assets falls below 90 percent for two consecutive actuarial valuations, the applicable postretirement increase must be determined under subdivision 8 until January 1 of the calendar year next following the date on which the requirements of subdivision 8, paragraph (c), are again satisfied. 

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

356.611 LIMITATION ON PUBLIC EMPLOYEE SALARIES FOR PENSION PURPOSES.Subd. 3.Maximum benefit limitations. 
An annuitant's annual benefit, if necessary, must be reduced to the extent required by section 415(b) of the federal Internal Revenue Code, as adjusted by the United States secretary of the treasury under section 415(d) of the federal Internal Revenue Code for any applicable increases in the cost of living, including applicable increases in the cost of living after the member's termination of employment. If an annuitant participated in more than one pension plan in which the employer participates, the benefits under each plan must be reduced proportionately, if necessary, to satisfy the applicable limitation. 

Subd. 3a.Maximum annual addition limitation, defined contribution plans. 
The annual additions on behalf of a member to a defined contribution plan for any limitation year shall not exceed the applicable limitation on annual additions under section 415(c) of the federal Internal Revenue Code, as adjusted by the United States secretary of the treasury under section 415(d) of the federal Internal Revenue Code. 

Subd. 4.Compensation. 
 For purposes of this section, compensation means a member's compensation actually paid or made available for any limitation year including all items of remuneration described in federal treasury regulation section 1.415 (c)-2(b) and excluding all items of remuneration described in federal treasury regulation section 1.415 (c)-2(c). Compensation for pension plan purposes for any limitation year shall not exceed the applicable federal compensation limit described in subdivision 2. 

Subd. 5.Limitation year. 
Unless otherwise specifically provided, for purposes of section 415 of the federal Internal Revenue Code, the limitation year of a pension plan covered by this section is the calendar year or fiscal year, whichever is applicable. 

356.96 PENSION PLAN APPEAL PROCEDURES.Subd. 14.Petitions without notice. 
Notwithstanding the petition notice and requirements under this section, a person who believes that the person's rights have been affected by a decision made by the administration of a covered pension plan may request a review under this section by the appropriate governing board. The petition under this subdivision must be made within 45 days of the time that the person knew or should have known of the disputed decision. 

Subd. 15.Governing board review panel. 
Any covered pension plan subject to this section, by motion duly made and adopted, may appoint a panel of governing board members to hear and determine any or all petitions brought under this section. The governing board review panel must contain a minimum number of board members that would otherwise constitute a quorum of board members under the governing body's rules and procedures. 

424A.02 DEFINED BENEFIT RELIEF ASSOCIATIONS; SERVICE PENSIONS.Subd. 13.Combined service pensions. 
(a) If the articles of incorporation or bylaws of the defined benefit relief associations so provide, a volunteer firefighter with credit for service as an active firefighter in more than one defined benefit volunteer firefighters relief association is entitled, when the applicable requirements of paragraph (b) are met and when otherwise qualified, to a prorated service credit from each relief association. 

(b) A volunteer firefighter receiving a prorated service pension under this subdivision must have a total amount of service credit of ten years or more, if the bylaws of every affected relief association do not specify only a five-year service vesting requirement, or five years or more, if the bylaws of every affected relief association require only a five-year service vesting requirement, as a member of two or more relief associations otherwise qualified. The member must have one year or more of service credit in each relief association. The prorated service pension must be based on the service pension amount in effect for the relief association on the date on which active volunteer firefighting services covered by that relief association terminate. To receive a service pension under this subdivision, the firefighter must become a member of the second or succeeding association and must give notice of membership to the prior association within two years of the date of termination of active service with the prior association. The notice must be attested to by the second or subsequent relief association secretary.