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 rates; modifying investment return 
1.5 	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 the lump-sum service pension maximum and lowering certain vesting 
1.22 	requirements for the 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 the city of Austin; establishing a fire state 
1.25 	aid work group; extending a reporting deadline for the Clearbrook Fire Department 
1.26 	Relief Association; clarifying a 1992 session law for the Swift County-Benson 
1.27 	Hospital; modifying various Department of Human Services and Department of 
1.28 	Corrections employment classifications eligible for correctional retirement 
1.29 	coverage; revising augmentation interest rates for certain terminated privatized 
1.30 	employees; adopting definition of the Hometown Heroes Act related to public 
1.31 	safety officer death benefits; modifying defined contribution plans to allow certain 
1.32 	distributions; allowing service credit purchase and rule of 90 eligibility for certain 
1.33 	Minnesota Department of Transportation employees; expanding investment 
1.34 	authority for the Hennepin County Supplemental Retirement Plan; authorizing 
1.35 	certain MnSCU employees to elect retroactive and prospective TRA coverage; 
1.36 	authorizing a MnSCU employee to transfer past service from IRAP to PERA; 
1.37 	increasing maximum employer contribution to a supplemental laborers pension 
1.38 	fund; exempting certain laborers groups from coverage; authorizing certain 
1.39 	additional sources of retirement plan funding; making technical and conforming 
2.1 	changes; authorizing direct state aid to the public employees police and fire 
2.2 	retirement plan and the St. Paul Teachers Retirement Fund Association; modifying 
2.3 	pension adjustment revenue provisions; appropriating money;amending Minnesota 
2.4 	Statutes 2016, sections 3A.02, subdivision 4; 3A.03, subdivisions 2, 3; 16A.14, 
2.5 	subdivision 2a; 126C.10, subdivision 37; 352.01, subdivisions 2a, 13a; 352.017, 
2.6 	subdivision 2; 352.03, subdivisions 5, 6; 352.04, subdivisions 2, 3, 8, 9; 352.113, 
2.7 	subdivisions 2, 4, 14; 352.116, subdivision 1a; 352.22, subdivisions 2, 3, by adding 
2.8 	subdivisions; 352.23; 352.27; 352.91, subdivisions 3f, 3g, by adding a subdivision; 
2.9 	352.92, subdivisions 1, 2, by adding a subdivision; 352.955, subdivision 3; 
2.10 	352B.013, subdivision 2; 352B.02, subdivisions 1a, 1c; 352B.08, by adding a 
2.11 	subdivision; 352B.085; 352B.086; 352B.11, subdivision 4; 352D.02, subdivisions 
2.12 	1, 3; 352D.04, subdivision 2; 352D.05, subdivision 4; 352D.085, subdivision 1; 
2.13 	352D.11, subdivision 2; 352D.12; 352F.04, subdivisions 1, 2, by adding a 
2.14 	subdivision; 353.01, subdivisions 2b, 10, 16, 43, 47; 353.012; 353.0162; 353.03, 
2.15 	subdivision 3; 353.27, subdivisions 7a, 12, 12a, 12b; 353.28, subdivision 5; 353.29, 
2.16 	subdivisions 4, 7; 353.30, subdivisions 3c, 5; 353.32, subdivisions 1, 4; 353.34, 
2.17 	subdivisions 2, 3; 353.35, subdivision 1; 353.37, subdivision 1; 353.64, subdivision 
2.18 	10; 353.65, subdivisions 2, 3, by adding a subdivision; 353D.07; 353F.02, 
2.19 	subdivision 5a; 353F.025, subdivision 2; 353F.04, subdivision 2; 353F.05; 
2.20 	353F.057; 353F.06; 353F.07; 353G.01, subdivision 9, by adding a subdivision; 
2.21 	353G.02, subdivision 6; 353G.03, subdivision 3; 353G.08, subdivision 3; 353G.11, 
2.22 	subdivision 1; 354.05, subdivision 2, by adding a subdivision; 354.06, subdivisions 
2.23 	2, 2a; 354.095; 354.42, subdivisions 2, 3; 354.435, subdivision 4; 354.436, 
2.24 	subdivision 3; 354.44, subdivisions 3, 6, 9; 354.45, by adding a subdivision; 354.46, 
2.25 	subdivision 6; 354.48, subdivision 1; 354.49, subdivision 2; 354.50, subdivision 
2.26 	2; 354.51, subdivision 5; 354.512; 354.52, subdivisions 4, 4d; 354.53, subdivision 
2.27 	5; 354.55, subdivision 11; 354.66, subdivision 2; 354.72, subdivisions 1, 2; 
2.28 	354A.011, subdivisions 3a, 29; 354A.093, subdivisions 4, 6; 354A.095; 354A.096; 
2.29 	354A.12, subdivisions 1, 1a, 2a, 3a, 3c, 7; 354A.29, subdivision 7; 354A.31, 
2.30 	subdivisions 3, 5, 6, 7; 354A.34; 354A.35, subdivision 2; 354A.36, subdivision 
2.31 	4; 354A.37, subdivisions 2, 3; 354A.38; 356.195, subdivision 2; 356.215, 
2.32 	subdivisions 9, 11; 356.24, subdivision 1; 356.30, subdivision 1; 356.32, subdivision 
2.33 	2; 356.415, subdivisions 1, 1a, 1b, 1c, 1d, 1e, 1f, by adding a subdivision; 356.44; 
2.34 	356.47, subdivisions 1, 3; 356.50, subdivision 2; 356.551, subdivision 2; 356.635, 
2.35 	subdivision 10, by adding subdivisions; 356.645; 356.96, subdivisions 1, 2, 3, 4, 
2.36 	5, 6, 7, 8, 9, 10, 11, 12, 13; 356A.06, subdivision 7; 383B.47; 383B.48; 383B.49; 
2.37 	383B.50; 423A.02, subdivisions 3, 5; 423A.022, subdivision 5; 424A.001, 
2.38 	subdivisions 2, 3, 10, by adding a subdivision; 424A.002, subdivision 1; 424A.01, 
2.39 	subdivisions 1, 5, 6, by adding subdivisions; 424A.015, subdivision 1, by adding 
2.40 	a subdivision; 424A.016, subdivision 2; 424A.02, subdivisions 1, 3a, 7; 424A.04, 
2.41 	subdivision 1; 424A.07; 424A.091, subdivision 3; 424A.094, subdivision 3; 
2.42 	424A.10, subdivision 1; 424B.20, subdivision 4; 490.121, subdivisions 4, 25, 26; 
2.43 	490.1211; 490.123, by adding a subdivision; 490.124, subdivision 12; Minnesota 
2.44 	Statutes 2017 Supplement, sections 353.27, subdivision 3c; 356.215, subdivision 
2.45 	8; Laws 1992, chapter 534, section 10, subdivision 3; proposing coding for new 
2.46 	law in Minnesota Statutes, chapters 353F; 353G; 356; 424A; repealing Minnesota 
2.47 	Statutes 2016, sections 3A.12; 352.04, subdivision 11; 352.045; 352.72; 352B.30; 
2.48 	353.0161; 353.27, subdivision 3b; 353.34, subdivision 6; 353.71; 354.42, 
2.49 	subdivisions 4a, 4b, 4c, 4d; 354.60; 354A.12, subdivision 2c; 354A.29, subdivisions 
2.50 	8, 9; 354A.39; 356.611, subdivisions 3, 3a, 4, 5; 356.96, subdivisions 14, 15; 
2.51 	424A.02, subdivision 13; Laws 2008, chapter 349, article 8, section 4.
2.52 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

3.1 	ARTICLE 1
3.2 	MINNESOTA STATE RETIREMENT SYSTEM
3.3 	BENEFIT CHANGES

3.4 	Section 1. Minnesota Statutes 2016, section 3A.02, subdivision 4, is amended to read:
3.5 		Subd. 4.Deferred annuities augmentation. (a) The deferred retirement allowance of 
3.6 	any former legislator must be augmented as provided herein.
3.7 	(b) The required reserves applicable to the deferred retirement allowance, determined 
3.8 	as of the date the benefit begins to accrue using an appropriate mortality table and an interest 
3.9 	assumption of six percent, must be augmented from the first of the month following the 
3.10 	termination of active service, or July 1, 1973, whichever is later, to the first day of the month 
3.11 	in which the allowance begins to accrue effective date of retirement, at the following annually 
3.12 	compounded rate or rates, compounded annually:
3.13 	(1) five percent until January 1, 1981;
3.14 	(2) three percent from January 1, 1981, or from the first day of the month following the 
3.15 	termination of active service, whichever is later, until January 1 of the year in which the 
3.16 	former legislator attains age 55 or until January 1, 2012, whichever is earlier;
3.17 	(3) five percent from the period end date under clause (2) until the effective date of 
3.18 	retirement or until January 1, 2012, whichever is earlier; and
3.19 	(4) two percent after December 31, 2011. from January 1, 2012, until December 31, 
3.20 	2018; and
3.21 	(5) after December 31, 2018, the deferred annuity must not be augmented.

3.22 	Sec. 2. Minnesota Statutes 2016, section 352.116, subdivision 1a, is amended to read:
3.23 		Subd. 1a.Actuarial reduction for early retirement. (a) This subdivision applies to a 
3.24 	person who has become at least 55 years old and first became a covered employee after 
3.25 	June 30, 1989, and to any other covered employee who has become at least 55 years old 
3.26 	and whose annuity is higher when calculated under section 352.115, subdivision 3, paragraph 
3.27 	(b), in conjunction with this subdivision than when calculated under section 352.115, 
3.28 	subdivision 3, paragraph (a), in conjunction with subdivision 1. A covered employee who 
3.29 	retires before the normal retirement age shall be paid the normal retirement annuity provided 
3.30 	in section 352.115, subdivisions 2 and 3, paragraph (b), reduced so thatas described in 
3.31 	paragraph (b) or (c), as applicable.
4.1 	(b) For covered employees who retire on or after July 1, 2019, the reduced annuity is 
4.2 	the actuarial equivalent of the annuity that would be payable to the employee if the employee 
4.3 	deferred receipt of the annuity until normal retirement age and the annuity amount were 
4.4 	augmented at anthe applicable annual rate of three percent, compounded annually, from 
4.5 	the day the annuity begins to accrue until the normal retirement age. The applicable annual 
4.6 	rate is the rate in effect on the employee's effective date of retirement and shall be considered 
4.7 	as fixed for the employee for the period until the employee reaches normal retirement age. 
4.8 	The applicable annual rates are the following:
4.9 	(1) until June 30, 2019, three percent if the employee became an employee before July 
4.10 	1, 2006, and 2.5 percent if the employee became an employee after June 30, 2006;
4.11 	(2) beginning July 1, 2019, through June 30, 2024, a rate that changes each month, on 
4.12 	the first day of the month, starting with the rate in clause (1), as applicable to the employee, 
4.13 	and reducing the rate to zero in equal monthly increments over the five-year period; and
4.14 	(3) after June 30, 2024, zero percent.
4.15 	After June 30, 2024, actuarial equivalent, for the purpose of determining the reduced 
4.16 	annuity commencing before normal retirement age under this clause, shall not take into 
4.17 	account any augmentation.
4.18 	(c) For covered employees who retire before July 1, 2019, the reduced annuity is the 
4.19 	actuarial equivalent of the annuity that would be payable to the employee if the employee 
4.20 	deferred receipt of the annuity until normal retirement age and the annuity amount were 
4.21 	augmented at an annual rate of three percent, compounded annually, from the day the annuity 
4.22 	begins to accrue until normal retirement age if the employee became an employee before 
4.23 	July 1, 2006, and at an annual rate of 2.5 percent, compounded annually, from the day the 
4.24 	annuity begins to accrue until the normal retirement age if the employee initially becomes
4.25 	became an employee after June 30, 2006.

4.26 	Sec. 3. Minnesota Statutes 2016, section 352.22, subdivision 2, is amended to read:
4.27 		Subd. 2.Amount of refund. Except as provided in subdivision 3, the refund payable 
4.28 	to a person who ceased to be a state employee by reason of a termination of state service is 
4.29 	an amount equal to employee accumulated contributions plus interest until the date on which 
4.30 	the refund is paid, at the rate offollowing rates for the applicable period:
4.31 	(1) six percent per year compounded daily from the date that the contribution was made 
4.32 	until June 30, 2011, or until the date on which the refund is paid, whichever is earlier, and 
4.33 	at the rate of;
5.1 	(2) four percent per year compounded daily from the date that the contribution was made 
5.2 	or from July 1, 2011, whichever is later, until the date on which the refund is paid.until 
5.3 	June 30, 2018; and
5.4 	(3) three percent per year compounded daily from the date that the contribution was 
5.5 	made or July 1, 2018, whichever is later.
5.6 	Included with the refund is any interest paid as part of repayment of a past refund, plus 
5.7 	interest thereon from the date of repayment.

5.8 	Sec. 4. Minnesota Statutes 2016, section 352.22, is amended by adding a subdivision to 
5.9 	read:
5.10 		Subd. 2b.Refund repayment. Any person who has received a refund from the state 
5.11 	employees retirement plan, and who is a member of any of the retirement plans specified 
5.12 	in section 356.311, paragraph (b), may repay the refund with interest to the state employees 
5.13 	retirement plan. If a refund is repaid to the plan and more than one refund has been received 
5.14 	from the plan, all refunds must be repaid. Repayment must be made as provided in section 
5.15 	352.23, and under terms and conditions consistent with that section as agreed upon with 
5.16 	the director.

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

6.7 	Sec. 6. Minnesota Statutes 2016, section 352.22, is amended by adding a subdivision to 
6.8 	read:
6.9 		Subd. 3a.Computation of deferred annuity. (a) The deferred annuity of any former 
6.10 	state employee must be augmented from the first day of the month following termination 
6.11 	of active service or July 1, 1971, whichever is later, to the effective date of retirement.
6.12 	(b) For a person who became a state employee before July 1, 2006, the annuity must be 
6.13 	augmented at the following rate or rates, compounded annually:
6.14 	(1) five percent until January 1, 1981;
6.15 	(2) three percent thereafter until January 1 of the year following the year in which the 
6.16 	former employee attains age 55 or January 1, 2012, whichever is earlier;
6.17 	(3) five percent from the January 1 next following the attainment of age 55 until 
6.18 	December 31, 2011;
6.19 	(4) two percent from January 1, 2012, until December 31, 2018; and
6.20 	(5) after December 31, 2018, the deferred annuity must not be augmented.
6.21 	(c) For a person who became a state employee after June 30, 2006, the annuity must be 
6.22 	augmented at the following rate or rates, compounded annually:
6.23 	(1) 2.5 percent until December 31, 2011;
6.24 	(2) two percent from January 1, 2012, until December 31, 2018; and
6.25 	(3) after December 31, 2018, the deferred annuity must not be augmented.
6.26 	(d) The retirement annuity or disability benefit of, or the survivor benefit payable on 
6.27 	behalf of, a former state employee who terminated service before July 1, 1997, which is not 
6.28 	first payable until after June 30, 1997, must be increased on an actuarial equivalent basis 
6.29 	to reflect the change in the postretirement interest rate actuarial assumption under section 
6.30 	356.215, subdivision 8, from five percent to six percent under a calculation procedure and 
6.31 	the tables adopted by the board and approved by the actuary retained under section 356.214.

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) The deferred annuity of any former 
7.4 	member must be augmented from the first day of the month following the termination of 
7.5 	active service, or July 1, 1971, whichever is later, to the effective date of retirement.
7.6 	(b) For a person who became an employee before July 1, 2006, the annuity must be 
7.7 	augmented at the following rate or rates, compounded annually:
7.8 	(1) five percent until January 1, 1981;
7.9 	(2) three percent from January 1, 1981, until December 31, 2011;
7.10 	(3) two percent from January 1, 2012, until December 31, 2018; and
7.11 	(4) after December 31, 2018, the deferred annuity must not be augmented.
7.12 	(c) For a person who became an employee after June 30, 2006, the annuity must be 
7.13 	augmented at the following rate or rates, compounded annually:
7.14 	(1) 2.5 percent until December 31, 2011;
7.15 	(2) two percent from January 1, 2012, until December 31, 2018; and
7.16 	(3) after December 31, 2018, the deferred annuity must not be augmented.
7.17 	(d) The mortality table and interest assumption used to compute the annuity must be 
7.18 	those in effect when the member files application for annuity.

7.19 	Sec. 8. Minnesota Statutes 2016, section 352D.085, subdivision 1, is amended to read:
7.20 		Subdivision 1.Combined service. Except as provided in section 356.30, 356.302, or 
7.21 	356.303, service under the unclassified program forduring which the employee has been 
7.22 	credited with employee sharescontributed to the program under section 352D.04, subdivision 
7.23 	2, may be used for the limited purpose of qualifying for benefits under sections 352.115, 
7.24 	352.72, subdivision 1,352.113, 354.44, 354.45, 354.48, and 354.60 356.311. The service 
7.25 	also may not be used to qualify for a disability benefit under section 352.113 or 354.48 if 
7.26 	a participant was under the unclassified program at the time of the disability. Also, the years 
7.27 	of service and salary paid while the participant was in the unclassified program may not be 
7.28 	used in determining the amount of benefits.

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

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

8.15 	Sec. 12. EFFECTIVE DATE.
 8.16 	Sections 1 to 11 are effective June 30, 2018.

8.17 	ARTICLE 2
8.18 	PUBLIC EMPLOYEES RETIREMENT ASSOCIATION
8.19 	BENEFIT CHANGES

8.20 	Section 1. Minnesota Statutes 2016, section 353.30, subdivision 5, is amended to read:
8.21 		Subd. 5.Actuarial reduction for early retirement. (a) This subdivision applies to a 
8.22 	member who has become at least 55 years old and first became a public employee after 
8.23 	June 30, 1989, and to any other member who has become at least 55 years old and whose 
8.24 	annuity is higher when calculated under section 353.29, subdivision 3, paragraph (b), in 
8.25 	conjunction with this subdivision than when calculated under section 353.29, subdivision 
8.26 	3, paragraph (a), in conjunction with subdivision 1, 1a, 1b, or 1c. An employee who retires 
8.27 	before normal retirement age shall be paid the retirement annuity provided in section 353.29, 
8.28 	subdivision 3, paragraph (b), reduced so thatas described in paragraph (b) or (c), as 
8.29 	applicable.
8.30 	(b) For members who begin to receive an annuity on or after July 1, 2019, the reduced 
8.31 	annuity is the actuarial equivalent of the annuity that would be payable to the employee if 
9.1 	the employee deferred receipt of the annuity until normal retirement age and the annuity 
9.2 	amount were augmented at anthe applicable annual rate of three percent, compounded 
9.3 	annually, from the day the annuity begins to accruestarting date until the normal retirement 
9.4 	age. The applicable annual rate is the rate in effect on the employee's effective date of 
9.5 	retirement and shall be considered as fixed for the employee for the period until the employee 
9.6 	reaches normal retirement age. The applicable annual rates are the following:
9.7 	(1) until June 30, 2019, three percent if the employee became an employee before July 
9.8 	1, 2006, and 2.5 percent if the employee became an employee after June 30, 2006;
9.9 	(2) beginning July 1, 2019, through June 30, 2024, a rate that changes each month, on 
9.10 	the first day of the month, starting with the rate in clause (1), as applicable to the employee, 
9.11 	and reducing the rate to zero in equal monthly increments over the five-year period; and
9.12 	(3) after June 30, 2024, zero percent.
9.13 	After June 30, 2024, actuarial equivalent, for the purpose of determining the reduced 
9.14 	annuity commencing before normal retirement age under this paragraph, shall not take into 
9.15 	account any augmentation.
9.16 	(c) For members who begin to receive an annuity before July 1, 2019, the reduced annuity 
9.17 	is the actuarial equivalent of the annuity that would be payable to the employee if the 
9.18 	employee deferred receipt of the annuity until normal retirement age and the annuity amount 
9.19 	were augmented at an annual rate of three percent, compounded annually, from the annuity 
9.20 	starting date until normal retirement age if the employee became an employee before July 
9.21 	1, 2006, and at 2.5 percent, compounded annually, from the day the annuity begins to accrue
9.22 	starting date until the normal retirement age if the employee initially becomesbecame an 
9.23 	employee after June 30, 2006.

9.24 	Sec. 2. Minnesota Statutes 2016, section 353.34, subdivision 2, is amended to read:
9.25 		Subd. 2.Refund with interest. (a) Except as provided in subdivision 1, any person who 
9.26 	ceases to be a public employee member is entitled to receive a refund in an amount equal 
9.27 	to accumulated deductions with annual compound interest to the first day of the month in 
9.28 	which the refund is processed.
9.29 	(b) Annual compound interest rates on a refund under paragraph (a) shall be as follows:
9.30 	(1) for a person who ceases to be a public employee before July 1, 2011, the refund 
9.31 	interest is at the rate of six percent to June 30, 2011,;
9.32 	(2) four percent after June 30, 2011, to June 30, 2018; and at the rate of four
10.1 	(3) three percent after June 30, 2011.2018.
10.2 	for a person who ceases to be a public employee after July 1, 2011, the refund interest 
10.3 	is at the rate of four percent.
10.4 	(c) If a person repays a refund and subsequently applies for another refund, the repayment 
10.5 	amount, including interest, is added to the fiscal year balance in which the repayment was 
10.6 	made.
10.7 	(d) If the refund payable to a member is based on employee deductions that are 
10.8 	determined to be invalid under section 353.27, subdivision 7, the interest payable on the 
10.9 	invalid employee deductions is four percent.

10.10 	Sec. 3. Minnesota Statutes 2016, section 353.34, subdivision 3, is amended to read:
10.11 		Subd. 3.Deferred annuity; eligibility; computation. (a) A member who is vested 
10.12 	under section 353.01, subdivision 47, when termination of public service or termination of 
10.13 	membership occurs has the option of leaving the accumulated deductions in the fund and 
10.14 	being entitled to a deferred retirement annuity commencing at normal retirement age or to 
10.15 	a deferred early retirement annuity under section 353.30, subdivision 1a, 1b, 1c, or 5.
10.16 	(b) The deferred annuity must be computed under section 353.29, subdivision 3, on the 
10.17 	basis of the law in effect on the date of termination of public service or termination of 
10.18 	membership, whichever is earlier, and must be augmented as provided in section 353.71, 
10.19 	subdivision 2 paragraph (c).
10.20 	(c) The deferred annuity of any former member must be augmented from the first day 
10.21 	of the month following the termination of active service, or July 1, 1971, whichever is later, 
10.22 	to the effective date of retirement.
10.23 	(d) For a person who became a public employee before July 1, 2006, and who has a 
10.24 	termination of public service before January 1, 2012, the deferred annuity must be augmented 
10.25 	at the following rate or rates, compounded annually:
10.26 	(1) five percent until January 1, 1981;
10.27 	(2) three percent from January 1, 1981, until January 1 of the year following the year in 
10.28 	which the former member attains age 55 or December 31, 2011, whichever is earlier;
10.29 	(3) five percent from January 1 of the year following the year in which the former member 
10.30 	attains age 55, or December 31, 2011, whichever is earlier;
10.31 	(4) one percent from January 1, 2012, until December 31, 2018; and
11.1 	(5) after December 31, 2018, the deferred annuity must not be augmented.
11.2 	(e) For a person who became a public employee after June 30, 2006, and who has a 
11.3 	termination of public service before January 1, 2012, the deferred annuity must be augmented 
11.4 	at the following rate or rates, compounded annually:
11.5 	(1) 2.5 percent until December 31, 2011;
11.6 	(2) one percent from January 1, 2012, until December 31, 2018; and
11.7 	(3) after December 31, 2018, the deferred annuity must not be augmented.
11.8 	(f) For a person who has a termination of public service after December 31, 2011, the 
11.9 	deferred annuity must not be augmented.
11.10 	(g) The retirement annuity or disability benefit of, or the survivor benefit payable on 
11.11 	behalf of, a former member who terminated service before July 1, 1997, or the survivor 
11.12 	benefit payable on behalf of a basic or police and fire member who was receiving disability 
11.13 	benefits before July 1, 1997, which is first payable after June 30, 1997, must be increased 
11.14 	on an actuarial equivalent basis to reflect the change in the postretirement interest rate 
11.15 	actuarial assumption under section 356.215, subdivision 8, from five percent to six percent 
11.16 	under a calculation procedure and tables adopted by the board and approved by the actuary 
11.17 	retained under section 356.214.
11.18 	(c)(h) A former member qualified to apply for a deferred retirement annuity may revoke 
11.19 	this option at any time before the commencement of deferred annuity payments by making 
11.20 	application for a refund. The person is entitled to a refund of accumulated member 
11.21 	contributions within 30 days following date of receipt of the application by the executive 
11.22 	director.

11.23 	Sec. 4. REPEALER.
 11.24 	Minnesota Statutes 2016, sections 353.27, subdivision 3b; and 353.71, are repealed.

11.25 	Sec. 5. EFFECTIVE DATE.
 11.26 	(a) Section 1 is effective for annuities with an annuity starting date that is on or after 
11.27 	July 1, 2019, notwithstanding the member's date of termination of public service.
11.28 	(b) Sections 2 to 4 are effective June 30, 2018.

12.1 	ARTICLE 3
12.2 	TEACHERS RETIREMENT ASSOCIATION
12.3 	BENEFIT CHANGES

12.4 	Section 1. Minnesota Statutes 2016, section 354.44, subdivision 6, is amended to read:
12.5 		Subd. 6.Computation of formula program retirement annuity. (a) The formula 
12.6 	retirement annuity must be computed in accordance with the applicable provisions of the 
12.7 	formulas stated in paragraph (b) or (d) on the basis of each member's average salary under 
12.8 	section 354.05, subdivision 13a, for the period of the member's formula service credit.
12.9 	(b) This paragraph, in conjunction with paragraph (c), applies to a person who first 
12.10 	became a member of the association or a member of a pension fund listed in section 356.30, 
12.11 	subdivision 3, before July 1, 1989, unless paragraph (d), in conjunction with paragraph (e), 
12.12 	produces a higher annuity amount, in which case paragraph (d) applies. The average salary 
12.13 	as defined in section 354.05, subdivision 13a, multiplied by the following percentages per 
12.14 	year of formula service credit shall determine the amount of the annuity to which the member 
12.15 	qualifying therefor is entitled for service rendered before July 1, 2006:

12.16		Period
		Coordinated Member
		Basic Member
	
12.17
12.18		Each year of service 
during first ten
		1.2 percent  per year
		2.2 percent  per year
	
12.19
12.20		Each year of service 
thereafter
		1.7 percent  per year
		2.7 percent  per year
	
12.21 	For service rendered on or after July 1, 2006, by a member other than a member who 
12.22 	was a member of the former Duluth Teachers Retirement Fund Association between January 
12.23 	1, 2006, and June 30, 2015, and for service rendered on or after July 1, 2013, by a member 
12.24 	who was a member of the former Duluth Teachers Retirement Fund Association between 
12.25 	January 1, 2013, and June 30, 2015, the average salary as defined in section 354.05, 
12.26 	subdivision 13a, multiplied by the following percentages per year of service credit, determines 
12.27 	the amount the annuity to which the member qualifying therefor is entitled:

12.28		Period
		Coordinated Member
		Basic Member
	
12.29
12.30		Each year of service 
during first ten
		1.4 percent  per year
		2.2 percent  per year
	
12.31
12.32		Each year of service after 
ten years of service
		1.9 percent  per year
		2.7 percent  per year
	
12.33 	(c)(i)(1) This paragraph applies only to a person who first became a member of the 
12.34 	association or a member of a pension fund listed in section 356.30, subdivision 3, before 
12.35 	July 1, 1989, and whose annuity is higher when calculated under paragraph (b), in conjunction 
13.1 	with this paragraph than when calculated under paragraph (d), in conjunction with paragraph 
13.2 	(e).
13.3 	(ii) (2) Where any member retires prior to normal retirement age under a formula annuity, 
13.4 	the member shall be paid a retirement annuity in an amount equal to the normal annuity 
13.5 	provided in paragraph (b) reduced by one-quarter of one percent for each month that the 
13.6 	member is under normal retirement age at the time of retirement except that for any member 
13.7 	who has 30 or more years of allowable service credit, the reduction shall be applied only 
13.8 	for each month that the member is under age 62.
13.9 	(iii) (3) Any member whose attained age plus credited allowable service totals 90 years 
13.10 	is entitled, upon application, to a retirement annuity in an amount equal to the normal annuity 
13.11 	provided in paragraph (b), without any reduction by reason of early retirement.
13.12 	(d) This paragraph applies to a member who has become at least 55 years old and first 
13.13 	became a member of the association after June 30, 1989, and to any other member who has 
13.14 	become at least 55 years old and whose annuity amount when calculated under this paragraph 
13.15 	and in conjunction with paragraph (e), is higher than it is when calculated under paragraph 
13.16 	(b), in conjunction with paragraph (c).
13.17 	(1) For a basic member, the average salary, as defined in section 354.05, subdivision 
13.18 	13a, multiplied by 2.7 percent for each year of service for a basic member determines the 
13.19 	amount of the retirement annuity to which the basic member is entitled. The annuity of a 
13.20 	basic member who was a member of the former Minneapolis Teachers Retirement Fund 
13.21 	Association as of June 30, 2006, must be determined according to the annuity formula under 
13.22 	the articles of incorporation of the former Minneapolis Teachers Retirement Fund Association 
13.23 	in effect as of that date.
13.24 	(2) For a coordinated member, the average salary, as defined in section 354.05, 
13.25 	subdivision 13a, multiplied by 1.7 percent for each year of service rendered before July 1, 
13.26 	2006, and by 1.9 percent for each year of service rendered on or after July 1, 2006, for a 
13.27 	member other than a member who was a member of the former Duluth Teachers Retirement 
13.28 	Fund Association between January 1, 2006, and June 30, 2015, and by 1.9 percent for each 
13.29 	year of service rendered on or after July 1, 2013, for a member of the former Duluth Teachers 
13.30 	Retirement Fund Association between January 1, 2013, and June 30, 2015, determines the 
13.31 	amount of the retirement annuity to which the coordinated member is entitled.
13.32 	(e) This paragraph applies to a personmember who has become at least 55 years old 
13.33 	and first becomes a member of the association after June 30, 1989, and to any other member 
13.34 	who has become at least 55 years old and whose annuity is higher when calculated under 
14.1 	paragraph (d) in conjunction with this paragraph than when calculated under paragraph (b), 
14.2 	in conjunction with paragraph (c). An employee who retires under the formula annuity 
14.3 	before the normal retirement age shall be paid the normal annuity provided in paragraph 
14.4 	(d) reduced so that the reduced annuity is the actuarial equivalent of the annuity that would 
14.5 	be payable to the employee if the employee deferred receipt of the annuity and the annuity 
14.6 	amount were augmented at an annual rate of three percent compounded annually from the 
14.7 	day the annuity begins to accrue until the normal retirement age if the employee became 
14.8 	an employee before July 1, 2006, and at 2.5 percent compounded annually if the employee 
14.9 	becomes an employee after June 30, 2006. Except in regards to section 354.46, this paragraph 
14.10 	remains in effect until June 30, 2015.
14.11 	(f) AfterUntil June 30, 2020 2019, this paragraph applies to a personmember who has 
14.12 	become at least 55 years old and first becomes a member of the association after June 30, 
14.13 	1989, and to any other member who has become at least 55 years old and whose annuity is 
14.14 	higher when calculated under paragraph (d) in conjunction with this paragraph than when 
14.15 	calculated under paragraph (b) in conjunction with paragraph (c). An employee who retires 
14.16 	under the formula annuity before the normal retirement age is entitled to receive the normal 
14.17 	annuity provided in paragraph (d), reduced as described in clause (1) or (2), as applicable.
14.18 	(1) For a personmember who is at least age 62 or older and has at least 30 years of 
14.19 	service, the annuity mustshall be reduced by an early reduction factor of six percent per
14.20 	for each year of the annuitythat the member's age of retirement precedes normal retirement 
14.21 	age. The resulting reduced annuity shall be further adjusted to take into account the increase 
14.22 	in the monthly amount that would be payable to the employee if the employeehave occurred 
14.23 	had the member retired early and deferred receipt of the annuity until normal retirement 
14.24 	age and the annuity amount werewas augmented at an annual rate of three percent 
14.25 	compounded annually from the day the annuity begins to accrue until the normal retirement 
14.26 	age if the employee became an employee before July 1, 2006, andduring the deferral period 
14.27 	at 2.5 percent compounded annually, if the employee became an employeemember 
14.28 	commenced employment after June 30, 2006, or at three percent, if the member commenced 
14.29 	employment before July 1, 2006, compounded annually.
14.30 	(2) For a personmember who ishas not at leastattained age 62 or older and does not 
14.31 	have at leastor has fewer than 30 years of service, the annuity wouldshall be reduced for 
14.32 	each year that the member's age of retirement precedes the normal retirement age by anthe 
14.33 	following early reduction factor offactors:
14.34 	(i) for the period during which the member is age 55 through age 59, the factor is four 
14.35 	percent per year for ages 55 through 59; and
15.1 	(ii) for the period during which the member is age 60 but not yet normal retirement age, 
15.2 	the factor is seven percent per year of the annuity that would be payable to the employee if 
15.3 	the employee.
15.4 	The resulting reduced annuity shall be further adjusted to take into account the increase 
15.5 	in the monthly amount that would have occurred had the member retired early and deferred 
15.6 	receipt of the annuity until normal retirement age and the annuity amount werewas 
15.7 	augmented at an annual rate of three percent compounded annually from the day the annuity 
15.8 	begins to accrue until the normal retirement age if the employee became an employee before 
15.9 	July 1, 2006, andduring the deferral period at 2.5 percent compounded annually, if the 
15.10 	employee became an employeemember commenced employment after June 30, 2006, or 
15.11 	at three percent, if the member commenced employment before July 1, 2006, compounded 
15.12 	annually.
15.13 	(g) For members who retire on or after July 1, 2019, this paragraph applies to a person 
15.14 	who has become at least 55 years old and first becomes a member of the association after 
15.15 	June 30, 1989, and to any other member who has become at least 55 years old and whose 
15.16 	annuity is higher when calculated under paragraph (d) in conjunction with this paragraph 
15.17 	than when calculated under paragraph (b) in conjunction with paragraph (c). An employee 
15.18 	who retires under the formula annuity before the normal retirement age is entitled to receive 
15.19 	the normal annuity provided in paragraph (d), reduced as described in clause (1) or (2), as 
15.20 	applicable.
15.21 	(1) For a member who is at least age 62 and has at least 30 years of service, the annuity 
15.22 	shall be reduced by an early reduction factor of six percent for each year that the member's 
15.23 	age of retirement precedes the normal retirement age. The resulting reduced annuity shall 
15.24 	be further adjusted to take into account the increase in the monthly amount that would have 
15.25 	occurred had the member retired early and deferred receipt of the annuity until normal 
15.26 	retirement age and the annuity was augmented during the deferral period at 2.5 percent, if 
15.27 	the member commenced employment after June 30, 2006, or at three percent, if the member 
15.28 	commenced employment before July 1, 2006, compounded annually.
15.29 	(2) For a member who has not attained age 62 or has fewer than 30 years of service, the 
15.30 	annuity shall be reduced for each year that the member's age of retirement precedes normal 
15.31 	retirement age by the following early reduction factors:
15.32 	(i) for the period during which the member is age 55 through age 59, the factor is four 
15.33 	percent; and
16.1 	(ii) for the period during which the member is age 60 but not yet normal retirement age, 
16.2 	the factor is seven percent.
16.3 	The resulting annuity shall be further adjusted to take into account the increase in the 
16.4 	monthly amount that would have occurred had the member retired early and deferred receipt 
16.5 	of the annuity until normal retirement age and the annuity was augmented during the deferral 
16.6 	period at the applicable annual rate, compounded annually. The applicable annual rate is 
16.7 	the rate in effect for the month that includes the member's effective date of retirement and 
16.8 	shall be considered as fixed for the member for the period until the member reaches normal 
16.9 	retirement age. The applicable annual rate for June 2019 is 2.5 percent, if the member 
16.10 	commenced employment after June 30, 2006, or three percent, if the member commenced 
16.11 	employment before July 1, 2006, compounded annually, and decreases each month beginning 
16.12 	July 2019 in equal monthly increments over the five-year period that begins July 1, 2019, 
16.13 	and ends June 30, 2024, to zero percent effective for July 2024 and thereafter.
16.14 	After June 30, 2024, the reduced annuity commencing before normal retirement age 
16.15 	under this clause shall not take into account any augmentation.
16.16 	(h) After June 30, 2015, and before July 1, 2020 2019, for a person who would have a 
16.17 	reduced retirement annuity under either paragraph (e) or (f) if they were applicable, the 
16.18 	employee is entitled to receive a reduced annuity which must be calculated using a blended 
16.19 	reduction factor augmented monthly by 1/60 of the difference between the reduction required 
16.20 	under paragraph (e) and the reduction required under paragraph (f).
16.21 	(h)(i) No retirement annuity is payable to a former employee with a salary that exceeds 
16.22 	95 percent of the governor's salary unless and until the salary figures used in computing the 
16.23 	highest five successive years average salary under paragraph (a) have been audited by the 
16.24 	Teachers Retirement Association and determined by the executive director to comply with 
16.25 	the requirements and limitations of section 354.05, subdivisions 35 and 35a.

16.26 	Sec. 2. Minnesota Statutes 2016, section 354.49, subdivision 2, is amended to read:
16.27 		Subd. 2.Calculation. (a) Except as provided in section 354.44, subdivision 1, any person 
16.28 	who ceases to be a member by reason of termination of teaching service, is entitled to receive 
16.29 	a refund in an amount equal to the accumulated deductions credited to the account plus 
16.30 	interest compounded annually using the following interest rates:
16.31 	(1) before July 1, 1957, no interest accrues;
16.32 	(2) July 1, 1957, to June 30, 2011, six percent; and
16.33 	(3) after June 30 July 1, 2011, to June 30, 2018, four percent; and
17.1 	(4) after June 30, 2018, three percent.
17.2 	For the purpose of this subdivision, interest must be computed on fiscal year end balances 
17.3 	to the first day of the month in which the refund is issued.
17.4 	(b) If the person has received permanent disability payments under section 354.48, the 
17.5 	refund amount must be reduced by the amount of those payments.

17.6 	Sec. 3. Minnesota Statutes 2016, section 354.55, subdivision 11, is amended to read:
17.7 		Subd. 11.Deferred annuity; augmentation. (a) Any person covered under section 
17.8 	354.44, subdivision 6, who ceases to render teaching service, may leave the person's 
17.9 	accumulated deductions in the fund for the purpose of receiving a deferred annuity at 
17.10 	retirement.
17.11 	(b) The amount of the deferred retirement annuity is determined by section 354.44, 
17.12 	subdivision 6, andof any former member must be augmented as provided in this subdivision. 
17.13 	The required reserves for the annuity which had accrued when the member ceased to render 
17.14 	teaching service must be augmented, as further specified in this subdivision, by the applicable 
17.15 	interest rate compounded annually from the first day of the month following the month 
17.16 	during which the member ceased to render teachingtermination of active service to the 
17.17 	effective date of retirement.
17.18 	(c) No augmentation is not creditable if the deferral period is less than three months or 
17.19 	if deferral commenced before July 1, 1971.
17.20 	(d) For persons who became covered employees before July 1, 2006, with a deferral 
17.21 	period commencing after June 30, 1971, the annuity must be augmented as follows at the 
17.22 	following rate or rates, compounded annually:
17.23 	(1) five percent interest compounded annually until January 1, 1981;
17.24 	(2) three percent interest compounded annually from January 1, 1981, until January 1 
17.25 	of the year following the year in which the deferred annuitant attains age 55 or June 30, 
17.26 	2012, whichever is earlier;
17.27 	(3) five percent interest compounded annually from the date established in clause (2) to 
17.28 	the effective date of retirement or until June 30, 2012, whichever is earlier; and
17.29 	(4) two percent interest compounded annually after June 30, 2012 from July 1, 2012, 
17.30 	until June 30, 2019; and
17.31 	(5) after June 30, 2019, the deferred annuity must not be augmented.
18.1 	(e) For persons who become covered employees after June 30, 2006, the interest rate 
18.2 	used to augment the deferred annuity ismust be augmented at the following rate or rates, 
18.3 	compounded annually:
18.4 	(1) 2.5 percent interest compounded annually until June 30, 2012, or until the effective 
18.5 	date of retirement, whichever is earlier, and;
18.6 	(2) two percent interest compounded annually after June 30 from July 1, 2012, until 
18.7 	June 30, 2019; and
18.8 	(3) after June 30, 2019, the deferred annuity must not be augmented.
18.9 	(f) If a person has more than one period of uninterrupted service, a separate average 
18.10 	salary determined under section 354.44, subdivision 6, must be used for each period and 
18.11 	the required reserves related to each period must be augmented as specified in this 
18.12 	subdivision. The sum of the augmented required reserves is the present value of the annuity. 
18.13 	For the purposes of this subdivision, "period of uninterrupted service" means a period of 
18.14 	covered teaching service during which the member has not been separated from active 
18.15 	service for more than one fiscal year.
18.16 	(g) If a person repays a refund, the service restored by the repayment must be considered 
18.17 	as continuous with the next period of service for which the person has allowable service 
18.18 	credit in the Teachers Retirement Association.
18.19 	(h) If a person does not render teaching service in any one fiscal year or more consecutive 
18.20 	fiscal years and then resumes teaching service, the formula percentages used from the date 
18.21 	of the resumption of teaching service must be those applicable to new members.
18.22 	(i) The mortality table and interest rate actuarial assumption used to compute the annuity 
18.23 	must be the applicable mortality table established by the board under section 354.07, 
18.24 	subdivision 1, and the interest rate actuarial assumption under section 356.215 in effect 
18.25 	when the member retires.
18.26 	(j)(f) In no case may the annuity payable under this subdivision be less than the amount 
18.27 	of annuity payable under section 354.44, subdivision 6.
18.28 	(k)(g) The requirements and provisions for retirement before normal retirement age 
18.29 	contained in section 354.44, subdivision 6, also apply to an employee fulfilling the 
18.30 	requirements with a combination of service as provided in section 354.60 356.311.
18.31 	(l)(h) The augmentation provided by this subdivision applies to the benefit provided in 
18.32 	section 354.46, subdivision 2.
19.1 	(m)(i) The augmentation provided by this subdivision does not apply to any period in 
19.2 	which a person is on an approved leave of absence from an employer unit covered by the 
19.3 	provisions of this chapter.
19.4 	(n)(j) The retirement annuity or disability benefit of, or the survivor benefit payable on 
19.5 	behalf of, a former teacher who terminated service before July 1, 1997, which is not first 
19.6 	payable until after June 30, 1997, must be increased on an actuarial equivalent basis to 
19.7 	reflect the change in the postretirement interest rate actuarial assumption under section 
19.8 	356.215, subdivision 8, from five percent to six percent under a calculation procedure and 
19.9 	tables adopted by the board as recommended by an approved actuary and approved by the 
19.10 	actuary retained under section 356.214.

19.11 	Sec. 4.  REPEALER.
 19.12 	Minnesota Statutes 2016, sections 354.42, subdivisions 4a, 4b, 4c, and 4d; and 354.60,
19.13 	are repealed.

19.14 	Sec. 5. EFFECTIVE DATE.
 19.15 	Sections 1 to 4 are effective June 30, 2018.

19.16 	ARTICLE 4
19.17 	ST. PAUL TEACHERS RETIREMENT FUND ASSOCIATION
19.18 	BENEFIT CHANGES

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

19.28 	Sec. 2. Minnesota Statutes 2016, section 354A.29, subdivision 7, is amended to read:
19.29 		Subd. 7.Eligibility for payment of Postretirement adjustments. (a) Annually, after 
19.30 	June 30, the board of trustees of the St. Paul Teachers Retirement Fund Association must 
20.1 	determine the amount of any postretirement adjustment using the procedures in this 
20.2 	subdivision and subdivision 8 or 9, whichever is applicable.
20.3 	(b) On January 1 (a) Except as set forth in paragraph (c), each person who has been 
20.4 	receiving an annuity or benefit under the articles of incorporation, the bylaws, or this chapter, 
20.5 	whose effective date of benefit commencement occurred on or before July 1 of the calendar 
20.6 	year immediately before the adjustment, is eligible to receive aan annual postretirement 
20.7 	increase as specified in subdivision 8 or 9. adjustment, effective as of each January 1, as 
20.8 	follows:
20.9 	(1) there shall be no postretirement adjustment on January 1, 2019, and January 1, 2020; 
20.10 	and
20.11 	(2) the postretirement adjustment shall be one percent on January 1, 2021, and each 
20.12 	January 1 thereafter.
20.13 	(b) A postretirement adjustment is to be applied as a permanent increase to the regular 
20.14 	payment of each eligible member on January 1. For any eligible member whose effective 
20.15 	date of benefit commencement occurred after January 1 of the immediately preceding 
20.16 	calendar year, the amount of the postretirement adjustment must be reduced by 50 percent.
20.17 	(c) Each person who retires on or after July 1, 2024, is entitled to an annual postretirement 
20.18 	adjustment, effective as of each January 1, beginning with the year following the year in 
20.19 	which the member attains normal retirement age.
20.20 	(d) Paragraph (c) does not apply to members who retire under section 354A.31, 
20.21 	subdivision 6, paragraph (b), or who retire when the member is at least age 62 and has at 
20.22 	least 30 years of service under section 354A.31, subdivision 7.

20.23 	Sec. 3. Minnesota Statutes 2016, section 354A.31, subdivision 7, is amended to read:
20.24 		Subd. 7. Reduction for early retirement. (a) This subdivision applies to a person who 
20.25 	has become at least 55 years old and first becomes a coordinated member after June 30, 
20.26 	1989, and to any other coordinated member who has become at least 55 years old and whose 
20.27 	annuity is higher when calculated using the retirement annuity formula percentage in 
20.28 	subdivision 4, paragraph (d), or subdivision 4a, paragraph (d), as applicable, in conjunction 
20.29 	with this subdivision than when calculated under subdivision 4, paragraph (c), or subdivision 
20.30 	4a, paragraph (c), in conjunction with subdivision 6. An employee who retires under the 
20.31 	formula annuity before the normal retirement age shall be paid the normal annuity reduced 
20.32 	as described in paragraph (b) if the person retires on or after July 1, 2019, or in paragraph 
20.33 	(c) if the person retires before July 1, 2019, as applicable.
21.1 	(b) A coordinated member who retires before the normal retirement age and on or after 
21.2 	July 1, 2019, is entitled to receive a retirement annuity calculated using the retirement 
21.3 	annuity formula percentage in subdivision 4, paragraph (d), or subdivision 4a, paragraph 
21.4 	(d), whichever applies,reduced as described in clause (1) or (2), as applicable.
21.5 	(1) If the member retires when the member is younger than age 62 or with fewer than 
21.6 	30 years of service, the annuity must be reduced by an early reduction factor for each year 
21.7 	that the member's age of retirement precedes normal retirement age. The early reduction 
21.8 	factors are four percent per year for ages 55 through 59 and seven percent per year for ages 
21.9 	60 through normal retirement age. The resulting annuity must be further adjusted to take 
21.10 	into account augmentation as if the employee had deferred receipt of the annuity until normal 
21.11 	retirement age and the annuity were augmented at the applicable annual rate, compounded 
21.12 	annually, from the day the annuity begins to accrue until normal retirement age. The 
21.13 	applicable annual rate is the rate in effect on the employee's effective date of retirement and 
21.14 	shall be considered as fixed for the employee. The applicable annual rates are the following:
21.15 	(i) until June 30, 2019, 2.5 percent;
21.16 	(ii) a rate that changes each month, beginning July 1, 2019, through June 30, 2024, which 
21.17 	is determined by reducing the rate in item (i) to zero in equal monthly increments over the 
21.18 	five-year period; and
21.19 	(iii) after June 30, 2024, zero percent.
21.20 	After June 30, 2024, the reduced annuity commencing before normal retirement age 
21.21 	under this clause shall not take into account any augmentation.
21.22 	(2) If the member retires when the member is at least age 62 or older and has at least 30 
21.23 	years of service, the member is entitled to receive a retirement annuity calculated using the 
21.24 	retirement annuity formula percentage in subdivision 4, paragraph (d), multiplied by the 
21.25 	applicable early retirement factor specified for members "Age 62 or older with 30 years of 
21.26 	service" in the table in paragraph (c).
21.27 	(c) A coordinated member who retires before the normal retirement age and before July 
21.28 	1, 2019, is entitled to receive a retirement annuity calculated using the retirement annuity 
21.29 	formula percentage in subdivision 4, paragraph (d), multiplied by the applicable early 
21.30 	retirement factor specified below:

21.31		Under age 62
	Age 62 or older
	
21.32		or less than 30 years of service
	with 30 years of service

21.33	Normal retirement age:
	65
	66
	65
	66
	
22.1	Age at retirement
					
22.2	55
	0.5376
	0.4592
			
22.3	56
	0.5745
	0.4992
			
22.4	57
	0.6092
	0.5370
			
22.5	58
	0.6419
	0.5726
			
22.6	59
	0.6726
	0.6062
			
22.7	60
	0.7354
	0.6726
			
22.8	61
	0.7947
	0.7354
			
22.9	62
	0.8507
	0.7947
	0.8831
	0.8389
	
22.10	63
	0.9035
	0.8507
	0.9246
	0.8831
	
22.11	64
	0.9533
	0.9035
	0.9635
	0.9246
	
22.12	65
	1.0000
	0.9533
	1.0000
	0.9635
	
22.13	66
		1.0000
		1.0000
	
22.14 	For normal retirement ages between ages 65 and 66, the early retirement factors must 
22.15 	be determined by linear interpolation between the early retirement factors applicable for 
22.16 	normal retirement ages 65 and 66.

22.17 	Sec. 4. Minnesota Statutes 2016, section 354A.37, subdivision 2, is amended to read:
22.18 		Subd. 2.Eligibility for deferred retirement annuity. (a) Any coordinated member 
22.19 	who ceases to render teaching services for the school district in which the teachers retirement 
22.20 	fund association is located, with sufficient allowable service credit to meet the minimum 
22.21 	service requirements specified in section 354A.31, subdivision 1, shall be entitled to a 
22.22 	deferred retirement annuity in lieu of a refund under subdivision 1.
22.23 	(b) The deferred retirement annuity must be computed under section 354A.31 and shall 
22.24 	be augmented as provided in this subdivision from the first day of the month following the 
22.25 	termination of active service to the effective date of retirement. There is no augmentation 
22.26 	if this period is less than three months.
22.27 	(c) The deferred annuity commences upon application after the person on deferred status 
22.28 	attains at least the minimum age specified in section 354A.31, subdivision 1.
22.29 	(b) The monthly annuity amount that had accrued when the member ceased to render 
22.30 	teaching service must be augmented from the first day of the month following the month 
22.31 	during which the member ceased to render teaching service to the effective date of retirement. 
22.32 	There is no augmentation if this period is less than three months. The rate of augmentation 
22.33 	is
23.1 	(d) For a person who became a covered employee before July 1, 2006, the annuity must 
23.2 	be augmented at the following rate or rates, compounded annually:
23.3 	(1) three percent compounded annually until January 1 of the year following the year 
23.4 	in which the former member attains age 55,or June 30, 2012, whichever is earlier;
23.5 	(2) five percent compounded annually after that date to July 1 from the January 1 next 
23.6 	following the attainment of age 55 or until June 30, 2012, and;
23.7 	(3) two percent compounded annually after that date to the effective date of retirement 
23.8 	if the employee became an employee before July 1, 2006, and atfrom July 1, 2012, until 
23.9 	June 30, 2019; and
23.10 	(4) after June 30, 2019, the deferred annuity must not be augmented.
23.11 	(e) For a person who became a covered employee after June 30, 2006, the annuity must 
23.12 	be augmented at the following rate or rates, compounded annually:
23.13 	(1) 2.5 percent compounded annually to July 1, 2012, anduntil June 30, 2012;
23.14 	(2) two percent compounded annually after that date to the effective date of retirement 
23.15 	if the employee became an employee after June 30, 2006. If a person has more than one 
23.16 	period of uninterrupted service, a separate average salary determined under section 354A.31
23.17 	must be used for each period, and the monthly annuity amount related to each period must 
23.18 	be augmented as provided in this subdivision. The sum of the augmented monthly annuity 
23.19 	amounts determines the total deferred annuity payable. If a person repays a refund, the 
23.20 	service restored by the repayment must be considered as continuous with the next period 
23.21 	of service for which the person has credit with the fund. If a person does not render teaching 
23.22 	services in any one fiscal year or more consecutive fiscal years and then resumes teaching 
23.23 	service, the formula percentages used from the date of resumption of teaching service are 
23.24 	those applicable to new members. The mortality table and interest assumption used to 
23.25 	compute the annuity are the table established by the fund to compute other annuities, and 
23.26 	the interest assumption under section 356.215 in effect when the member retires. A period 
23.27 	of uninterrupted service for the purpose of this subdivision means a period of covered 
23.28 	teaching service during which the member has not been separated from active service for 
23.29 	more than one fiscal year. from July 1, 2012, until June 30, 2019; and
23.30 	(3) after June 30, 2019, the deferred annuity must not be augmented.
23.31 	(c) (f) The augmentation provided by this subdivision applies to the benefit provided in 
23.32 	section 354A.35, subdivision 2. The augmentation provided by this subdivision does not 
24.1 	apply to any period in which a person is on an approved leave of absence from an employer 
24.2 	unit.

24.3 	Sec. 5. Minnesota Statutes 2016, section 354A.37, subdivision 3, is amended to read:
24.4 		Subd. 3.Computation of refund amount. A former coordinated member who qualifies 
24.5 	for a refund under subdivision 1 is entitled to receive a refund equal to the amount of the 
24.6 	former coordinated member's accumulated employee contributions with interest at the rate 
24.7 	offollowing rates for the applicable period:
24.8 	(1) Six percent per annum compounded annually to July 1, 2011, if the person is a former 
24.9 	member of the St. Paul Teachers Retirement Fund Association, and;
24.10 	(2) four percent per annum compounded annually to July 1, 2018; and
24.11 	(3) three percent per annum compounded annually thereafter.

24.12 	Sec. 6.  REPEALER.
 24.13 	Minnesota Statutes 2016, sections 354A.29, subdivisions 8 and 9; and 354A.39, are 
24.14 	repealed.

24.15 	Sec. 7. EFFECTIVE DATE.
 24.16 	Sections 1 to 6 are effective June 30, 2018.

24.17 	ARTICLE 5
24.18 	ACTUARIAL ASSUMPTIONS AND
24.19 	POSTRETIREMENT ADJUSTMENTS FOR STATEWIDE PLANS

24.20 	Section 1. Minnesota Statutes 2017 Supplement, section 356.215, subdivision 8, is amended 
24.21 	to read:
24.22 		Subd. 8.Interest and salaryActuarial assumptions. (a) The actuarial valuation must 
24.23 	use the applicable following interestinvestment return assumption:
24.24 	(1) select and ultimate interest rate assumption

24.2624.25
	plan
	ultimate interest rate 
assumption
		
24.27	teachers retirement plan
	8.5%
		
24.28 	The select preretirement interest rate assumption for the period through June 30, 2017, 
24.29 	is eight percent.
24.30 	(2) single rate interest rate assumption

25.325.1
25.2
	plan
	interest rate
investment return 
assumption
		
25.4	general state employees retirement plan
	8 7.5%
		
25.5	correctional state employees retirement plan
	8 7.5
		
25.6	State Patrol retirement plan
	8 7.5
		
25.7
25.8
25.9	legislators retirement plan, and for the 
constitutional officers calculation of total plan 
liabilities
	0
		
25.10	judges retirement plan
	8 7.5
		
25.11	general public employees retirement plan
	8 7.5
		
25.12	public employees police and fire retirement plan
	8 7.5
		
25.13
25.14	local government correctional service retirement 
plan
	8 7.5
		
25.15	teachers retirement plan
	7.5
		
25.16	St. Paul teachers retirement plan
	8 7.5
		
25.17	Bloomington Fire Department Relief Association
	6
		
25.18
25.19	local monthly benefit volunteer firefighter relief 
associations
	5
		
25.20
25.21	monthly benefit retirement plans in the statewide 
volunteer firefighter retirement plan
	6
		
25.22 	(b)(1) If funding stability has been attained, The actuarial valuation for each of the 
25.23 	covered retirement plans listed in section 356.415, subdivision 2, and the St. Paul Teachers 
25.24 	Retirement Fund Association must use atake into account the postretirement adjustment 
25.25 	rate actuarial assumption equal to the postretirement adjustment rateor rates applicable to 
25.26 	the plan as specified in section 354A.29, subdivision 9 7, or 356.415, subdivision 1,
25.27 	whichever applies.
25.28 	(2) If funding stability has not been attained, the valuation must use a select postretirement 
25.29 	adjustment rate actuarial assumption equal to the postretirement adjustment rate specified 
25.30 	in section 354A.29, subdivision 8, or 356.415, subdivision 1a, 1b, 1c, 1d, 1e, or 1f, whichever 
25.31 	applies, for a period ending when the approved actuary estimates that the plan will attain 
25.32 	the defined funding stability measure, and thereafter an ultimate postretirement adjustment 
25.33 	rate actuarial assumption equal to the postretirement adjustment rate under section 354A.29, 
25.34 	subdivision 9, or 356.415, subdivision 1, for the applicable period or periods beginning 
25.35 	when funding stability is projected to be attained.
25.36 	(c) The actuarial valuation must use the applicable following single rate future salary 
25.37 	increase assumption, the applicable following modified single rate future salary increase 
25.38 	assumption, or the applicable following graded rate future salary increase assumption: and 
26.1 	payroll growth assumptions found in the appendix to the standards for actuarial work adopted 
26.2 	by the Legislative Commission on Pensions and Retirement pursuant to section 3.85, 
26.3 	subdivision 10. The appendix must be updated whenever new assumptions have been 
26.4 	approved or deemed approved under subdivision 18.
26.5 	(1) single rate future salary increase assumption

26.6	plan
	future salary increase assumption
	
26.7	legislators retirement plan
		5%
	
26.8	judges retirement plan
		2.75
	
26.9	Bloomington Fire Department Relief Association
		4
	
26.10 	(2) age-related future salary increase age-related select and ultimate future salary increase 
26.11 	assumption or graded rate future salary increase assumption

26.12	plan
	future salary increase assumption
	
26.13	local government correctional service retirement plan
	assumption B
	
26.14	St. Paul teachers retirement plan
	assumption A
	
26.15 	For plans other than the St. Paul teachers 
26.16 	retirement plan and the local government 
26.17 	correctional service retirement plan, the select 
26.18 	calculation is: during the designated select 
26.19 	period, a designated percentage rate is 
26.20 	multiplied by the result of the designated 
26.21 	integer minus T, where T is the number of 
26.22 	completed years of service, and is added to 
26.23 	the applicable future salary increase 
26.24 	assumption. The designated select period is 
26.25 	ten years and the designated integer is ten for 
26.26 	the local government correctional service 
26.27 	retirement plan and 15 for the St. Paul 
26.28 	Teachers Retirement Fund Association. The 
26.29 	designated percentage rate is 0.2 percent for 
26.30 	the St. Paul Teachers Retirement Fund 
26.31 	Association.
26.32 	The ultimate future salary increase assumption is:

26.33	age
	A
	B
		
26.34	16
	5.9%
		8.75%
		
26.35	17
	5.9
		8.75
		
27.1	18
	5.9
		8.75
		
27.2	19
	5.9
		8.75
		
27.3	20
	5.9
		8.75
		
27.4	21
	5.9
		8.5
		
27.5	22
	5.9
		8.25
		
27.6	23
	5.85
		8
		
27.7	24
	5.8
		7.75
		
27.8	25
	5.75
		7.5
		
27.9	26
	5.7
		7.25
		
27.10	27
	5.65
		7
		
27.11	28
	5.6
		6.75
		
27.12	29
	5.55
		6.5
		
27.13	30
	5.5
		6.5
		
27.14	31
	5.45
		6.25
		
27.15	32
	5.4
		6.25
		
27.16	33
	5.35
		6.25
		
27.17	34
	5.3
		6
		
27.18	35
	5.25
		6
		
27.19	36
	5.2
		5.75
		
27.20	37
	5.15
		5.75
		
27.21	38
	5.1
		5.75
		
27.22	39
	5.05
		5.5
		
27.23	40
	5
		5.5
		
27.24	41
	4.95
		5.5
		
27.25	42
	4.9
		5.25
		
27.26	43
	4.85
		5
		
27.27	44
	4.8
		5
		
27.28	45
	4.75
		4.75
		
27.29	46
	4.7
		4.75
		
27.30	47
	4.65
		4.75
		
27.31	48
	4.6
		4.75
		
27.32	49
	4.55
		4.75
		
27.33	50
	4.5
		4.75
		
27.34	51
	4.45
		4.75
		
27.35	52
	4.4
		4.75
		
27.36	53
	4.35
		4.75
		
27.37	54
	4.3
		4.75
		
27.38	55
	4.25
		4.5
		
28.1	56
	4.2
		4.5
		
28.2	57
	4.15
		4.25
		
28.3	58
	4.1
		4
		
28.4	59
	4.05
		4
		
28.5	60
	4
		4
		
28.6	61
	4
		4
		
28.7	62
	4
		4
		
28.8	63
	4
		4
		
28.9	64
	4
		4
		
28.10	65
	4
		3.75
		
28.11	66
	4
		3.75
		
28.12	67
	4
		3.75
		
28.13	68
	4
		3.75
		
28.14	69
	4
		3.75
		
28.15	70
	4
		3.75
		
28.16 	(3) service-related ultimate future salary increase assumption

28.17
28.18	general state employees retirement plan of the Minnesota 
State Retirement System
	assumption A
	
28.19
28.20	general employees retirement plan of the Public 
Employees Retirement Association
	assumption B
	
28.21	Teachers Retirement Association
	assumption C
	
28.22	public employees police and fire retirement plan
	assumption D
	
28.23	State Patrol retirement plan
	assumption E
	
28.24
28.25	correctional state employees retirement plan of the 
Minnesota State Retirement System
	assumption F

28.26
28.27	service 
length
	A
	B
	C
	D
	E
	F
	
28.28	1
	10.25%
	11.78%
	12%
	12.75%
	7.75%
	5.75%
	
28.29	2
	7.85
	8.65
	9
	10.75
	7.25
	5.6
	
28.30	3
	6.65
	7.21
	8
	8.75
	6.75
	5.45
	
28.31	4
	5.95
	6.33
	7.5
	7.75
	6.5
	5.3
	
28.32	5
	5.45
	5.72
	7.25
	6.25
	6.25
	5.15
	
28.33	6
	5.05
	5.27
	7
	5.85
	6
	5
	
28.34	7
	4.75
	4.91
	6.85
	5.55
	5.75
	4.85
	
28.35	8
	4.45
	4.62
	6.7
	5.35
	5.6
	4.7
	
28.36	9
	4.25
	4.38
	6.55
	5.15
	5.45
	4.55
	
28.37	10
	4.15
	4.17
	6.4
	5.05
	5.3
	4.4
	
28.38	11
	3.95
	3.99
	6.25
	4.95
	5.15
	4.3
	
29.1	12
	3.85
	3.83
	6
	4.85
	5
	4.2
	
29.2	13
	3.75
	3.69
	5.75
	4.75
	4.85
	4.1
	
29.3	14
	3.55
	3.57
	5.5
	4.65
	4.7
	4
	
29.4	15
	3.45
	3.45
	5.25
	4.55
	4.55
	3.9
	
29.5	16
	3.35
	3.35
	5
	4.55
	4.4
	3.8
	
29.6	17
	3.25
	3.26
	4.75
	4.55
	4.25
	3.7
	
29.7	18
	3.25
	3.25
	4.5
	4.55
	4.1
	3.6
	
29.8	19
	3.25
	3.25
	4.25
	4.55
	3.95
	3.5
	
29.9	20
	3.25
	3.25
	4
	4.55
	3.8
	3.5
	
29.10	21
	3.25
	3.25
	3.9
	4.45
	3.75
	3.5
	
29.11	22
	3.25
	3.25
	3.8
	4.35
	3.75
	3.5
	
29.12	23
	3.25
	3.25
	3.7
	4.25
	3.75
	3.5
	
29.13	24
	3.25
	3.25
	3.6
	4.25
	3.75
	3.5
	
29.14	25
	3.25
	3.25
	3.5
	4.25
	3.75
	3.5
	
29.15	26
	3.25
	3.25
	3.5
	4.25
	3.75
	3.5
	
29.16	27
	3.25
	3.25
	3.5
	4.25
	3.75
	3.5
	
29.17	28
	3.25
	3.25
	3.5
	4.25
	3.75
	3.5
	
29.18	29
	3.25
	3.25
	3.5
	4.25
	3.75
	3.5
	
29.19	30 or more
	3.25
	3.25
	3.5
	4.25
	3.75
	3.5
	
29.20 	(d) The actuarial valuation must use the applicable following payroll growth assumption 
29.21 	for calculating the amortization requirement for the unfunded actuarial accrued liability 
29.22 	where the amortization retirement is calculated as a level percentage of an increasing payroll:

29.23	plan
	payroll growth assumption
	
29.24
29.25	general state employees retirement plan of the Minnesota 
State Retirement System
	3.5%
	
29.26	correctional state employees retirement plan
	3.5
	
29.27	State Patrol retirement plan
	3.5
	
29.28	judges retirement plan
	2.75
	
29.29
29.30	general employees retirement plan of the Public 
Employees Retirement Association
	3.5
	
29.31	public employees police and fire retirement plan
	3.5
	
29.32	local government correctional service retirement plan
	3.5
	
29.33	teachers retirement plan
	3.75
	
29.34	St. Paul teachers retirement plan
	4
	
29.35 	(e)(d) The assumptions set forth in paragraphs (c) and (d)the appendix to the standards 
29.36 	for actuarial work continue to apply, unless a different salary assumption or a different 
29.37 	payroll increase assumption:
30.1 	(1) has been proposed by the governing board of the applicable retirement plan;
30.2 	(2) is accompanied by the concurring recommendation of the actuary retained under 
30.3 	section 356.214, subdivision 1, if applicable, or by the approved actuary preparing the most 
30.4 	recent actuarial valuation report if section 356.214 does not apply; and
30.5 	(3) has been approved or deemed approved under subdivision 18.

30.6 	Sec. 2. Minnesota Statutes 2016, section 356.215, subdivision 9, is amended to read:
30.7 		Subd. 9.Other assumptions. The(a) Each plan's actuarial valuation must use 
30.8 	assumptions concerning base mortality rates, disability, retirement, withdrawal, retirement 
30.9 	age, and any other relevant demographic or economic factor. These assumptions must be 
30.10 	set at levels consistent with those determined in the most recent quadrennial experience 
30.11 	study completed under subdivision 16, if required, or representative of the best estimate of 
30.12 	future experience as recommended by the plan's approved actuary, if a quadrennial experience 
30.13 	study is not required.
30.14 	(b) The actuarial valuation may use an assumption concerning future mortality 
30.15 	improvement. This assumption may be set at levels consistent with those determined in the 
30.16 	most recent mortality improvement scale published by the Society of Actuaries or as 
30.17 	otherwise recommended by the plan's approved actuary.
30.18 	(c) The actuarial valuation must contain an exhibit indicating anythe actuarial 
30.19 	assumptions used in preparing the valuation report.

30.20 	Sec. 3. Minnesota Statutes 2016, section 356.215, subdivision 11, is amended to read:
30.21 		Subd. 11.Amortization contributions. (a) In addition to the exhibit indicating the level 
30.22 	normal cost, the actuarial valuation of the retirement plan must contain an exhibit for financial 
30.23 	reporting purposes indicating the additional annual contribution sufficient to amortize the 
30.24 	unfunded actuarial accrued liability and must contain an exhibit for contribution 
30.25 	determination purposes indicating the additional contribution sufficient to amortize the 
30.26 	unfunded actuarial accrued liability. For the retirement plans listed in subdivision 8, paragraph 
30.27 	(c), but excluding the legislators retirement plan, the additional contribution must be 
30.28 	calculated on a level percentage of covered payroll basis by the established date for full 
30.29 	funding in effect when the valuation is prepared, assuming annual payroll growth at the 
30.30 	applicable percentage rate set forth in subdivision 8, paragraph (d). For all other retirement 
30.31 	plans and for the legislators retirement plan, the additional annual contribution must be 
30.32 	calculated on a level annual dollar amount basis.
31.1 	(b) For any retirement plan other than a retirement plan governed by paragraph (d), (e), 
31.2 	(f), (g), (h), (i), or (j), if there has not been a change in the actuarial assumptions used for 
31.3 	calculating the actuarial accrued liability of the fund, a change in the benefit plan governing 
31.4 	annuities and benefits payable from the fund, a change in the actuarial cost method used in 
31.5 	calculating the actuarial accrued liability of all or a portion of the fund, or a combination 
31.6 	of the three, which change or changes by itself or by themselves without inclusion of any 
31.7 	other items of increase or decrease produce a net increase in the unfunded actuarial accrued 
31.8 	liability of the fund, the established date for full funding is the first actuarial valuation date 
31.9 	occurring after June 1, 2020.
31.10 	(c) For any retirement plan, if there has been a change in any or all of the actuarial 
31.11 	assumptions used for calculating the actuarial accrued liability of the fund, a change in the 
31.12 	benefit plan governing annuities and benefits payable from the fund, a change in the actuarial 
31.13 	cost method used in calculating the actuarial accrued liability of all or a portion of the fund, 
31.14 	or a combination of the three, and the change or changes, by itself or by themselves and 
31.15 	without inclusion of any other items of increase or decrease, produce a net increase in the 
31.16 	unfunded actuarial accrued liability in the fund, the established date for full funding must 
31.17 	be determined using the following procedure:
31.18 	(i) the unfunded actuarial accrued liability of the fund must be determined in accordance 
31.19 	with the plan provisions governing annuities and retirement benefits and the actuarial 
31.20 	assumptions in effect before an applicable change;
31.21 	(ii) the level annual dollar contribution or level percentage, whichever is applicable, 
31.22 	needed to amortize the unfunded actuarial accrued liability amount determined under item 
31.23 	(i) by the established date for full funding in effect before the change must be calculated 
31.24 	using the interest assumption specified in subdivision 8 in effect before the change;
31.25 	(iii) the unfunded actuarial accrued liability of the fund must be determined in accordance 
31.26 	with any new plan provisions governing annuities and benefits payable from the fund and 
31.27 	any new actuarial assumptions and the remaining plan provisions governing annuities and 
31.28 	benefits payable from the fund and actuarial assumptions in effect before the change;
31.29 	(iv) the level annual dollar contribution or level percentage, whichever is applicable, 
31.30 	needed to amortize the difference between the unfunded actuarial accrued liability amount 
31.31 	calculated under item (i) and the unfunded actuarial accrued liability amount calculated 
31.32 	under item (iii) over a period of 30 years from the end of the plan year in which the applicable 
31.33 	change is effective must be calculated using the applicable interest assumption specified in 
31.34 	subdivision 8 in effect after any applicable change;
32.1 	(v) the level annual dollar or level percentage amortization contribution under item (iv) 
32.2 	must be added to the level annual dollar amortization contribution or level percentage 
32.3 	calculated under item (ii);
32.4 	(vi) the period in which the unfunded actuarial accrued liability amount determined in 
32.5 	item (iii) is amortized by the total level annual dollar or level percentage amortization 
32.6 	contribution computed under item (v) must be calculated using the interest assumption 
32.7 	specified in subdivision 8 in effect after any applicable change, rounded to the nearest 
32.8 	integral number of years, but not to exceed 30 years from the end of the plan year in which 
32.9 	the determination of the established date for full funding using the procedure set forth in 
32.10 	this clause is made and not to be less than the period of years beginning in the plan year in 
32.11 	which the determination of the established date for full funding using the procedure set forth 
32.12 	in this clause is made and ending by the date for full funding in effect before the change; 
32.13 	and
32.14 	(vii) the period determined under item (vi) must be added to the date as of which the 
32.15 	actuarial valuation was prepared and the date obtained is the new established date for full 
32.16 	funding.
32.17 	(d) For the general employees retirement plan of the Public Employees Retirement 
32.18 	Association, the established date for full funding is June 30, 2031 2048.
32.19 	(e) For the Teachers Retirement Association, the established date for full funding is June 
32.20 	30, 20372048.
32.21 	(f) For the correctional state employees retirement plan and the State Patrol retirement 
32.22 	plan of the Minnesota State Retirement System, the established date for full funding is June 
32.23 	30, 2038 2048.
32.24 	(g) For the judges retirement plan, the established date for full funding is June 30, 2038
32.25 	2048.
32.26 	(h) For the local government correctional service retirement plan and the public employees 
32.27 	police and fire retirement plan, the established date for full funding is June 30, 2038 2048.
32.28 	(i) For the St. Paul Teachers Retirement Fund Association, the established date for full 
32.29 	funding is June 30, 2042. In addition to other requirements of this chapter, the annual 
32.30 	actuarial valuation must contain an exhibit indicating the funded ratio and the deficiency 
32.31 	or sufficiency in annual contributions when comparing liabilities to the market value of the 
32.32 	assets of the fund as of the close of the most recent fiscal year 2048.
33.1 	(j) For the general state employees retirement plan of the Minnesota State Retirement 
33.2 	System, the established date for full funding is June 30, 2040 2048.
33.3 	(k) For the retirement plans for which the annual actuarial valuation indicates an excess 
33.4 	of valuation assets over the actuarial accrued liability, the valuation assets in excess of the 
33.5 	actuarial accrued liability must be recognized as a reduction in the current contribution 
33.6 	requirements by an amount equal to the amortization of the excess expressed as a level 
33.7 	percentage of pay over a 30-year period beginning anew with each annual actuarial valuation 
33.8 	of the plan.

33.9 	Sec. 4. Minnesota Statutes 2016, section 356.30, subdivision 1, is amended to read:
33.10 		Subdivision 1.Eligibility; computation of annuity. (a) Notwithstanding any provisions 
33.11 	of the laws governing the covered retirement plans enumeratedlisted in subdivision 3, a 
33.12 	person who has met the qualifications of paragraph (b) may elect to receive, upon retirement,
33.13 	a retirement annuity from each enumeratedcovered retirement plan in which the person has 
33.14 	at least one-half year of allowable service, based on the allowable service in each plan, 
33.15 	subject to the provisions of paragraph (c). (b), if the person has:
33.16 	(1) allowable service in any two or more of the covered plans;
33.17 	(2) at least one-half year of allowable service in each covered plan, based on the allowable 
33.18 	service in each plan;
33.19 	(3) total allowable service that equals or exceeds the longest service credit vesting 
33.20 	requirement of the applicable retirement plan; and
33.21 	(4) not begun to receive an annuity from any covered plan or made application for 
33.22 	benefits from each applicable plan and the retirement annuity effective dates of each plan 
33.23 	are within a one-year period.
33.24 	(b) A person may receive, upon retirement, a retirement annuity from each enumerated 
33.25 	retirement plan in which the person has at least one-half year of allowable service, and 
33.26 	augmentation of a deferred annuity calculated at the appropriate rate under the laws governing 
33.27 	each public pension plan or fund named in subdivision 3, based on the date of the person's 
33.28 	initial entry into public employment from the date the person terminated all public service 
33.29 	if:
33.30 	(1) the person has allowable service in any two or more of the enumerated plans;
34.1 	(2) the person has sufficient allowable service in total that equals or exceeds the applicable 
34.2 	service credit vesting requirement of the retirement plan with the longest applicable service 
34.3 	credit vesting requirement; and
34.4 	(3) the person has not begun to receive an annuity from any enumerated plan or the 
34.5 	person has made application for benefits from each applicable plan and the effective dates 
34.6 	of the retirement annuity with each plan under which the person chooses to receive an 
34.7 	annuity are within a one-year period.
34.8 	(c)(b) If all requirements in paragraph (a) have been satisfied, the retirement annuity 
34.9 	from each plan must be based upon the allowable service, accrual rates, and average salary 
34.10 	in the applicable plan except as further specified or modified in the following clauses:
34.11 	(1) the laws governing annuities must be the law in effect on the date of termination 
34.12 	from the last period of public service under a covered retirement plan with which the person 
34.13 	earned a minimum of one-half year of allowable service credit during that employment;
34.14 	(2) the "average salary" on which the annuity from each covered plan in which the 
34.15 	employee has credit in aused to calculate the annuity for each formula plan must be based 
34.16 	on the employee's highest five successive years of covered salary during the entire service 
34.17 	in covered plans;
34.18 	(3) the accrual rates to be used byunder each plan must be thosethe percentages 
34.19 	prescribed by each plan's formula as continuedin effect for the respective years of allowable 
34.20 	service from one plan to the next, recognizing all previous allowable service with the other 
34.21 	covered plans;
34.22 	(4) the allowable service in all the covered plans must be combined in determining 
34.23 	eligibility for and the application of each plan's provisions inwith respect to reduction in 
34.24 	the annuity amount for retirement prior to normal retirement age; and
34.25 	(5) the annuity amount payable for any allowable service under a nonformula plan of
34.26 	that is a covered plan must not be affected, but such service and covered salary must be 
34.27 	used in the above calculation.
34.28 	(c) If a person eligible for an annuity under paragraph (a) from each covered plan 
34.29 	terminates all public service, the deferred annuity must be augmented from the date of 
34.30 	termination until the earlier of:
34.31 	(1) the effective date of retirement; or
35.1 	(2) December 31, 2018, for the Minnesota State Retirement System and the Public 
35.2 	Employees Retirement Association or June 30, 2019, for the Teachers Retirement Association 
35.3 	and the St. Paul Teachers Retirement Association.
35.4 	A deferred annuity must not be augmented after the applicable dates under clause (2). 
35.5 	The appropriate rate of augmentation is the rate in effect on the date on which the person 
35.6 	entered into public employment and subsequently adjusted according to the laws governing 
35.7 	each covered plan, as applicable.
35.8 	(d) This section does not apply to any person whose final termination from the last public 
35.9 	service under a covered plan was before May 1, 1975.
35.10 	(e) For the purpose of computing annuities under this section, the accrual rates used by 
35.11 	any covered plan, except the public employees police and fire plan, the judges retirement 
35.12 	fund, and the State Patrol retirement plan, must not exceed 2.7 percent per year of service 
35.13 	for any year of service or fraction thereof. The formula percentage used by:
35.14 	(1) the judges retirement fund accrual rate must not exceed 3.2 percent per year of service 
35.15 	for any year of service or fraction thereof. The accrual rate used by;
35.16 	(2) the public employees police and fire plan and the State Patrol retirement plan accrual 
35.17 	rate must not exceed 3.0 percent per year of service for any year of service or fraction 
35.18 	thereof. The accrual rate or rates used by;
35.19 	(3) the legislators retirement plan accrual rate must not exceed 2.5 percent, but this limit 
35.20 	does not apply to the adjustment provided under section 3A.02, subdivision 1, paragraph 
35.21 	(c).; and
35.22 	(4) any other covered plan's accrual rate must not exceed 2.7 percent per year of service 
35.23 	for any year of service or fraction thereof.
35.24 	(f) Any period of time for which a person has credit in more than one of the covered 
35.25 	plans must be used only once for the purpose of determining total allowable service.
35.26 	(g) If the period of duplicated service credit is more than one-half year, or the person 
35.27 	has credit for more than one-half year, with each of the plans, each plan must apply its 
35.28 	formula to a prorated service credit for the period of duplicated service based on a fraction 
35.29 	of the salary on which deductions were paid to that fund for the period divided by the total 
35.30 	salary on which deductions were paid to all plans for the period.
35.31 	(h) If the period of duplicated service credit is less than one-half year, or when added 
35.32 	to other service credit with that plan is less than one-half year, the service credit must be 
36.1 	ignored and a refund of contributions made to the person in accord with that plan's refund 
36.2 	provisions.

36.3 	Sec. 5. [356.311] COVERAGE BY MORE THAN ONE PLAN.
36.4 	(a) Any person who has been a member of two or more of the retirement plans listed in 
36.5 	paragraph (b) is entitled, when qualified, to an annuity from each fund if:
36.6 	(1) the person's combined service in any two or more retirement plans equals or exceeds 
36.7 	the vesting requirement of the fund with the longest vesting requirement; and
36.8 	(2) the person has not taken a refund from any of the retirement plans.
36.9 	(b) This section applies to any defined benefit plan administered by the Minnesota State 
36.10 	Retirement System, including the State Patrol Retirement Plan; the Public Employees 
36.11 	Retirement Association, including the public employees police and fire plan; the Teachers 
36.12 	Retirement Association; and the St. Paul Teachers Retirement Fund Association, except as 
36.13 	noted in paragraph (c).
36.14 	(c) This section does not apply to plans providing benefits for police officers or 
36.15 	firefighters under sections 424A.091 to 424A.096 or the Bloomington Fire Department 
36.16 	Relief Association.
36.17 	(d) No portion of the service upon which the retirement annuity from one retirement 
36.18 	plan is based shall be again used in the computation of a retirement annuity from another 
36.19 	plan. The annuity from each plan must be determined under the laws applicable to that plan 
36.20 	except that the requirement that a person meet the vesting requirement in any particular 
36.21 	plan shall not apply, provided the combined service in any two or more plans equals or 
36.22 	exceeds the vesting requirement of the plan with the longest vesting requirement.
36.23 	(e) Any deferred annuity payable under this section shall be subject to augmentation 
36.24 	under the laws applicable to the deferred annuity.
36.25 	(f) Any person to whom an annuity is not payable under this section because the person 
36.26 	took a refund from one of the funds shall be entitled to repay the refund in accordance with 
36.27 	the laws governing the refund. Upon repayment, the person is entitled to annuities under 
36.28 	this section, if the person would otherwise be entitled.

36.29 	Sec. 6. Minnesota Statutes 2016, section 356.415, subdivision 1, is amended to read:
36.30 		Subdivision 1.Annual postretirement adjustments; generally Minnesota State 
36.31 	Retirement System general state employees retirement plan, legislators retirement 
37.1 	plan, and unclassified state employees retirement program. (a) Except as otherwise 
37.2 	provided in subdivision 1a, 1b, 1c, 1d, 1e, or 1f set forth in paragraph (c), recipients of a 
37.3 	retirement annuity, disability benefit, or survivor benefit recipients of a coveredfrom the 
37.4 	general state employees retirement plan, the legislators retirement plan, or the unclassified 
37.5 	state employees retirement program are entitled to aan annual postretirement adjustment 
37.6 	annually on, effective as of each January 1, as follows:
37.7 	(1) effective January 1, 2019, through December 31, 2023, a postretirement increase of 
37.8 	2.5one percent must be applied each year, effective January 1, to the amount of the monthly 
37.9 	annuity or benefit of each annuitant or benefit recipient who has been receiving an annuity 
37.10 	or a benefit for at least 12 full months as of the June 30 of the calendar year immediately 
37.11 	before the adjustment; and
37.12 	(2) effective January 1, 2019, through December 31, 2023, for each annuitant or benefit 
37.13 	recipient who has been receiving an annuity or a benefit amount for at least one full month, 
37.14 	but less than 12 full months as of the June 30 of the calendar year immediately before the 
37.15 	adjustment, an annuala postretirement increase of 1/12 of 2.5one percent for each month 
37.16 	that the person has been receiving an annuity or benefit must be applied. to the amount of 
37.17 	the monthly annuity or benefit of the annuitant or benefit recipient;
37.18 	(3) effective January 1, 2024, and thereafter, a postretirement increase of 1.5 percent 
37.19 	must be applied each year to the amount of the monthly annuity or benefit of each annuitant 
37.20 	or benefit recipient who has been receiving an annuity or a benefit for at least 12 full months 
37.21 	as of the June 30 of the calendar year immediately before the adjustment; and
37.22 	(4) effective January 1, 2024, and thereafter, for each annuitant or benefit recipient who 
37.23 	has been receiving an annuity or a benefit for at least one full month, but less than 12 full 
37.24 	months as of the June 30 of the calendar year immediately before the adjustment, an annual 
37.25 	postretirement increase of 1/12 of 1.5 percent for each month that the person has been 
37.26 	receiving an annuity or benefit must be applied to the amount of the monthly annuity or 
37.27 	benefit of the annuitant or benefit recipient.
37.28 	(b) An increase in annuity or benefit payments under this sectionsubdivision must be 
37.29 	made automatically unless written notice is filed by the annuitant or benefit recipient with 
37.30 	the executive director of the covered retirement plan requesting that the increase not be 
37.31 	made.
37.32 	(c) Members who retire on or after January 1, 2024, under the general state employees 
37.33 	retirement plan, the legislators retirement plan, or the unclassified state employees retirement 
37.34 	program are entitled to an annual postretirement adjustment of the member's retirement 
38.1 	annuity, effective as of each January 1, beginning with the year following the year in which 
38.2 	the member attains normal retirement age, as follows:
38.3 	(1) if a member has been receiving an annuity for at least 12 full months as of the June 
38.4 	30 of the calendar year immediately before the date of the adjustment, a postretirement 
38.5 	increase equal to the percentage specified in paragraph (a), clause (3), must be applied, 
38.6 	effective on January 1, to the amount of the member's monthly annuity;
38.7 	(2) if a member has been receiving an annuity for at least one full month, but less than 
38.8 	12 full months as of the June 30 of the calendar year immediately before the date of 
38.9 	adjustment, a postretirement increase of 1/12 of the percentage specified in paragraph (a), 
38.10 	clause (4), for each month that the member has been receiving an annuity must be applied, 
38.11 	effective on January 1, to the amount of the member's monthly annuity; or
38.12 	(3) if a member has been receiving an annuity for fewer than seven months before the 
38.13 	date of adjustment, a postretirement increase shall not be applied until the next January 1 
38.14 	and the amount of the adjustment shall be the amount determined under clause (2).
38.15 	(d) Paragraph (c) does not apply to members who retire under section 352.116, 
38.16 	subdivision 1, paragraph (c).

38.17 	Sec. 7. Minnesota Statutes 2016, section 356.415, subdivision 1a, is amended to read:
38.18 		Subd. 1a.Annual postretirement adjustments; Minnesota State Retirement System 
38.19 	plans other than State Patrolcorrectional state employees retirement plan. (a) 
38.20 	Retirement annuity, disability benefit, or survivor benefit recipients of the legislators 
38.21 	retirement plan, including constitutional officers as specified in chapter 3A, the general 
38.22 	state employees retirement plan, the correctional state employees retirement plan, and the 
38.23 	unclassified state employees retirement program are entitled to aan annual postretirement 
38.24 	adjustment annually on, effective as of each January 1, as follows:
38.25 	(1) for each successive January 1, if the definition of funding stability under paragraph 
38.26 	(b) has not been met as of the prior July 1 for or with respect to the applicable retirement 
38.27 	plan, a postretirement increase of two1.5 percent must be applied each year, effective on 
38.28 	January 1, to the monthly annuity or benefit of each annuitant or benefit recipient who has 
38.29 	been receiving an annuity or a benefit for at least 12 full months as of the June 30 of the 
38.30 	calendar year immediately before the adjustment; and
38.31 	(2) for each successive January 1, if the definition of funding stability under paragraph 
38.32 	(b) has not been met as of the prior July 1 for or with respect to the applicable retirement 
38.33 	plan, for each annuitant or benefit recipient who has been receiving an annuity or a benefit 
39.1 	for at least one full month, but less than 12 full months as of the June 30 of the calendar 
39.2 	year immediately before the adjustment, an annual postretirement increase of 1/12 of two
39.3 	1.5 percent for each month that the person has been receiving an annuity or benefit must 
39.4 	be applied to the amount of the monthly annuity or benefit of each annuitant or benefit 
39.5 	recipient.
39.6 	(b) Increases under this subdivision for the general state employees retirement plan or 
39.7 	the correctional state employees retirement plan terminate on December 31 of the calendar 
39.8 	year in which two prior consecutive actuarial valuations prepared by the approved actuary 
39.9 	under sections 356.214 and 356.215 and the standards for actuarial work promulgated by 
39.10 	the Legislative Commission on Pensions and Retirement indicate that the market value of 
39.11 	assets of the retirement plan equals or exceeds 90 percent of the actuarial accrued liability 
39.12 	of the retirement plan and increases under subdivision 1 recommence after that date. Increases 
39.13 	under this subdivision for the legislators retirement plan established under chapter 3A, 
39.14 	including the constitutional officers specified in that chapter, and for the unclassified state 
39.15 	employees retirement program, terminate on December 31 of the calendar year in which 
39.16 	two prior consecutive actuarial valuations prepared by the approved actuary under sections 
39.17 	356.214 and 356.215 and the standards for actuarial work promulgated by the Legislative 
39.18 	Commission on Pensions and Retirement indicate that the market value of assets of the 
39.19 	general state employees retirement plan equals or exceeds 90 percent of the actuarial accrued 
39.20 	liability of the retirement plan and increases under subdivision 1 recommence after that 
39.21 	date.
39.22 	(c) After having met the definition of funding stability under paragraph (b), the increase 
39.23 	provided in paragraph (a), clauses (1) and (2), rather than an increase under subdivision 1, 
39.24 	for the general state employees retirement plan or the correctional state employees retirement 
39.25 	plan, is again to be applied in a subsequent year or years if the market value of assets of the 
39.26 	applicable plan equals or is less than:
39.27 	(1) 85 percent of the actuarial accrued liabilities of the applicable plan for two consecutive 
39.28 	actuarial valuations; or
39.29 	(2) 80 percent of the actuarial accrued liabilities of the applicable plan for the most recent 
39.30 	actuarial valuation.
39.31 	(d) After having met the definition of funding stability under paragraph (b), the increase 
39.32 	provided in paragraph (a), clauses (1) and (2), rather than an increase under subdivision 1, 
39.33 	for the legislators retirement plan, including the constitutional officers, and for the 
39.34 	unclassified state employees retirement program, is again to be applied in a subsequent year 
40.1 	or years if the market value of assets of the general state employees retirement plan equals 
40.2 	or is less than:
40.3 	(1) 85 percent of the actuarial accrued liabilities of the applicable plan for two consecutive 
40.4 	actuarial valuations; or
40.5 	(2) 80 percent of the actuarial accrued liabilities of the applicable plan for the most recent 
40.6 	actuarial valuation.
40.7 	(e)(b) An increase in annuity or benefit payments under this subdivision must be made 
40.8 	automatically unless written notice is filed by the annuitant or benefit recipient with the 
40.9 	executive director of the applicable covered retirement plan requesting that the increase not 
40.10 	be made.

40.11 	Sec. 8. Minnesota Statutes 2016, section 356.415, subdivision 1b, is amended to read:
40.12 		Subd. 1b.Annual postretirement adjustments; PERA; general employees retirement 
40.13 	plan and local government correctional retirement plan. (a) Retirement annuity, disability 
40.14 	benefit, or survivor benefit recipients ofAnnuities, disability benefits, and survivor benefits 
40.15 	being paid from the general employees retirement plan of the Public Employees Retirement 
40.16 	Association and the local government correctional service retirement plan are entitled to a 
40.17 	postretirement adjustment annually onshall be increased effective each January 1, as follows:
40.18 	by the percentage of increase determined under this subdivision. The increase to the annuity 
40.19 	or benefit shall be determined by multiplying the monthly amount of the annuity or benefit 
40.20 	by the percentage of increase specified in paragraph (b), after taking into account any 
40.21 	reduction to the percentage of increase required under paragraph (c).
40.22 	(1) for each successive January 1 until funding stability is restored for the applicable 
40.23 	retirement plan, a postretirement increase of one percent must be applied each year, effective 
40.24 	on January 1, to the monthly annuity or benefit amount of each annuitant or benefit recipient 
40.25 	who has been receiving an annuity or benefit for at least 12 full months as of the June 30 
40.26 	of the calendar year immediately before the adjustment;
40.27 	(2) for each successive January 1 until funding stability is restored for the applicable 
40.28 	retirement plan, for each annuitant or benefit recipient who has been receiving an annuity 
40.29 	or a benefit for at least one full month, but less than 12 full months as of the June 30 of the 
40.30 	calendar year immediately before the adjustment, an annual postretirement increase of 1/12 
40.31 	of one percent for each month the person has been receiving an annuity or benefit must be 
40.32 	applied;
41.1 	(3) for each January 1 following the restoration of funding stability for the applicable 
41.2 	retirement plan, a postretirement increase of 2.5 percent must be applied each year, effective 
41.3 	January 1, to the monthly annuity or benefit amount of each annuitant or benefit recipient 
41.4 	who has been receiving an annuity or benefit for at least 12 full months as of the June 30 
41.5 	of the calendar year immediately before the adjustment; and
41.6 	(4) for each January 1 following restoration of funding stability for the applicable 
41.7 	retirement plan, for each annuity or benefit recipient who has been receiving an annuity or 
41.8 	a benefit for at least one full month, but less than 12 full months as of the June 30 of the 
41.9 	calendar year immediately before the adjustment, an annual postretirement increase of 1/12 
41.10 	of 2.5 percent for each month the person has been receiving an annuity or benefit must be 
41.11 	applied.
41.12 	(b) Funding stability is restored when the market value of assets of the applicable 
41.13 	retirement plan equals or exceeds 90 percent of the actuarial accrued liabilities of the 
41.14 	applicable plan in the two most recent consecutive actuarial valuations prepared under 
41.15 	section 356.215 and the standards for actuarial work by the approved actuary retained by 
41.16 	the Public Employees Retirement Association under section 356.214.
41.17 	(c) After having met the definition of funding stability under paragraph (b), the increase 
41.18 	provided in paragraph (a), clauses (1) and (2), rather than an increase under subdivision 1, 
41.19 	is again to be applied in a subsequent year or years if the market value of assets of the 
41.20 	applicable plan equals or is less than:
41.21 	(1) 85 percent of the actuarial accrued liabilities of the applicable plan for two consecutive 
41.22 	actuarial valuations; or
41.23 	(2) 80 percent of the actuarial accrued liabilities of the applicable plan for the most recent 
41.24 	actuarial valuation.
41.25 	(b) The percentage of increase shall be one percent unless the federal Social Security 
41.26 	Administration has announced a cost-of-living adjustment pursuant to United States Code, 
41.27 	title 42, section 415(i), in the last quarter of the preceding calendar year that is greater than 
41.28 	two percent. If the cost-of-living adjustment announced by the federal Social Security 
41.29 	Administration is greater than two percent, the percentage of increase shall be 50 percent 
41.30 	of the cost-of-living adjustment announced by the federal Social Security Administration, 
41.31 	but in no event may the percentage of increase exceed 1.5 percent.
41.32 	(c)(1) If the recipient of an annuity, disability benefit, or survivor's benefit has been 
41.33 	receiving the annuity or benefit for at least 12 full months as of the June 30 of the calendar 
42.1 	year immediately before the effective date of the increase, there is no reduction in the 
42.2 	percentage of increase.
42.3 	(2) If the recipient of an annuity, disability benefit, or survivor's benefit has been receiving 
42.4 	the annuity or benefit for at least one month, but less than 12 full months, as of the June 30 
42.5 	of the calendar year immediately preceding the effective date of the increase, the percentage 
42.6 	of increase is multiplied by a fraction, the numerator of which is the number of months the 
42.7 	annuity or benefit was received as of June 30 of the preceding calendar year and the 
42.8 	denominator of which is 12.
42.9 	(d) Effective for members who retire on or after January 1, 2024, annuities shall not be 
42.10 	increased under paragraphs (a) to (c) until January 1 of the year following the year in which 
42.11 	the member reaches normal retirement age. January 1 of the year following the year in 
42.12 	which the member reaches normal retirement age shall be considered the effective date of 
42.13 	the increase under paragraph (c). If a member has been receiving an annuity for fewer than 
42.14 	seven months as of the January 1 of the year following the year in which the member reaches 
42.15 	normal retirement age, no increase shall be paid until January 1 of the next year.
42.16 	(d)(e) An increase in annuity or benefit payments under this section must be made 
42.17 	automatically unless written notice is filed by the annuitant or benefit recipient with the 
42.18 	executive director of the Public Employees Retirement Association requesting that the 
42.19 	increase not be made.
42.20 	(f) Paragraph (d) does not apply to members who retire under section 353.30, subdivision 
42.21 	1a.

42.22 	Sec. 9. Minnesota Statutes 2016, section 356.415, subdivision 1c, is amended to read:
42.23 		Subd. 1c.Annual postretirement adjustments; PERA-police and fire. (a) Retirement 
42.24 	annuity, disability benefit, or survivor benefit recipients of the public employees police and 
42.25 	fire retirement plan are entitled to aan annual postretirement adjustment annually on, 
42.26 	effective as of each January 1, if the definition of funding stability under paragraph (c) has 
42.27 	not been met, as follows:
42.28 	(1) for each annuitant or benefit recipient whose annuity or benefit effective date is on 
42.29 	or before June 1, 2014, who has been receiving the annuity or benefit for at least 12 full 
42.30 	months as of the immediate preceding June 30, an amount equal to one percent in each year; 
42.31 	or
42.32 	(2) for each annuitant or benefit recipient whose annuity or benefit effective date is on 
42.33 	or before June 1, 2014, who has been receiving the annuity or benefit for at least one full 
43.1 	month, but less than 12 months, as of the immediate preceding June 30, an amount equal 
43.2 	to 1/12 of one percent for each month of annuity or benefit receipt; and
43.3 	(3)(1) for each annuitant or benefit recipient whose annuity or benefit effective date is 
43.4 	after June 1, 2014, who will have been receiving an annuity or benefit for at least 36 full 
43.5 	months as of the immediate preceding June 30, an amount equal toa postretirement increase 
43.6 	of one percent must be applied each year to the amount of the monthly annuity or benefit 
43.7 	of the annuitant or benefit recipient; or
43.8 	(4)(2) for each annuitant or benefit recipient whose annuity or benefit effective date is 
43.9 	after June 1, 2014, who has been receiving the annuity or benefit for at least 25 full months, 
43.10 	but less than 36 months as of the immediate preceding June 30, an amount equal toa 
43.11 	postretirement increase of 1/12 of one percent for each full month ofthat the person has 
43.12 	been receiving an annuity or benefit receipt during the fiscal year in which the annuity or 
43.13 	benefit was effective must be applied each year to the amount of the monthly annuity or 
43.14 	benefit of the annuitant or benefit recipient.
43.15 	(b) Retirement annuity, disability benefit, or survivor benefit recipients of the public 
43.16 	employees police and fire retirement plan are entitled to a postretirement adjustment annually 
43.17 	on each January 1 following the restoration of funding stability as defined under paragraph 
43.18 	(c) and during the continuation of funding stability as defined under paragraph (c), as follows:
43.19 	(1) for each annuitant or benefit recipient who has been receiving the annuity or benefit 
43.20 	for at least 36 full months as of the immediate preceding June 30, an amount equal to 2.5 
43.21 	percent; and
43.22 	(2) for each annuitant or benefit recipient who has been receiving the annuity or benefit 
43.23 	for at least 25 full months, but less than 36 full months, as of the immediate preceding June 
43.24 	30, an amount equal to 1/12 of 2.5 percent for each full month of annuity or benefit receipt 
43.25 	during the fiscal year in which the annuity or benefit was effective.
43.26 	(c) Funding stability is restored when the market value of assets of the public employees 
43.27 	police and fire retirement plan equals or exceeds 90 percent of the actuarial accrued liabilities 
43.28 	of the applicable plan in the two most recent consecutive actuarial valuations prepared under 
43.29 	section 356.215 and under the standards for actuarial work of the Legislative Commission 
43.30 	on Pensions and Retirement by the approved actuary retained by the Public Employees 
43.31 	Retirement Association under section 356.214.
43.32 	(d) After having met the definition of funding stability under paragraph (c), a full or 
43.33 	prorated increase, as provided in paragraph (a), clause (1), (2), (3), or (4), whichever applies, 
43.34 	rather than adjustments under paragraph (b), is again applied in a subsequent year or years 
44.1 	if the market value of assets of the public employees police and fire retirement plan equals 
44.2 	or is less than:
44.3 	(1) 85 percent of the actuarial accrued liabilities of the applicable plan for two consecutive 
44.4 	actuarial valuations; or
44.5 	(2) 80 percent of the actuarial accrued liabilities of the applicable plan for the most recent 
44.6 	actuarial valuation.
44.7 	(e)(b) An increase in annuity or benefit payments under this section must be made 
44.8 	automatically unless written notice is filed by the annuitant or benefit recipient with the 
44.9 	executive director of the Public Employees Retirement Association requesting that the 
44.10 	increase not be made.

44.11 	Sec. 10. Minnesota Statutes 2016, section 356.415, subdivision 1d, is amended to read:
44.12 		Subd. 1d.Teachers Retirement Association annual postretirement adjustments. (a)
44.13 	Except as set forth in paragraph (d), recipients of a retirement annuity, disability benefit, 
44.14 	or survivor benefit recipients offrom the Teachers Retirement Association are entitled to 
44.15 	aan annual postretirement adjustment annually on, effective as of each January 1, as follows:
44.16 	(1) for eacheffective January 1 until funding stability is restored, 2019, through December 
44.17 	31, 2023, a postretirement increase of twoone percent must be applied each year, effective 
44.18 	on January 1, to the amount of the monthly annuity or benefit amount of each annuitant or 
44.19 	benefit recipient who has been receiving an annuity or a benefit for at least 12 full months 
44.20 	as of the June 30 of the calendar year immediately before the adjustment;
44.21 	(2) for eacheffective January 1 until funding stability is restored, 2019, through December 
44.22 	31, 2023, for each annuitant or benefit recipient who has been receiving an annuity or a 
44.23 	benefit for at least one full month, but less than 12 full months as of the June 30 of the 
44.24 	calendar year immediately before the adjustment, an annuala postretirement increase of 
44.25 	1/12 of twoone percent for each month the person has been receiving an annuity or benefit 
44.26 	must be applied; to the amount of the monthly annuity or benefit of the annuitant or benefit 
44.27 	recipient;
44.28 	(3) for each January 1 following the restoration of funding stability, a postretirement 
44.29 	increase of 2.5 percent must be applied each year, effective January 1, to the monthly annuity 
44.30 	or benefit amount of each annuitant or benefit recipient who has been receiving an annuity 
44.31 	or a benefit for at least 12 full months as of the June 30 of the calendar year immediately 
44.32 	before the adjustment; and
45.1 	(4) for each January 1 following the restoration of funding stability, for each annuitant 
45.2 	or benefit recipient who has been receiving an annuity or a benefit for at least one month, 
45.3 	but less than 12 full months as of the June 30 of the calendar year immediately before the 
45.4 	adjustment, an annual postretirement increase of 1/12 of 2.5 percent for each month the 
45.5 	person has been receiving an annuity or benefit must be applied.
45.6 	(b) Funding stability is restored when the market value of assets of the Teachers 
45.7 	Retirement Association equals or exceeds 90 percent of the actuarial accrued liabilities of 
45.8 	the Teachers Retirement Association in the two most recent prior actuarial valuations 
45.9 	prepared under section 356.215 and the standards for actuarial work by the approved actuary 
45.10 	retained by the Teachers Retirement Association under section 356.214.
45.11 	(c) After having met the definition of funding stability under paragraph (b), the increase 
45.12 	provided in paragraph (a), clauses (1) and (2), rather than an increase under subdivision 1, 
45.13 	or the increase under paragraph (a), clauses (3) and (4), is again to be applied in a subsequent 
45.14 	year or years if the market value of assets of the plan equals or is less than:
45.15 	(1) 85 percent of the actuarial accrued liabilities of the plan for two consecutive actuarial 
45.16 	valuations; or
45.17 	(2) 80 percent of the actuarial accrued liabilities of the plan for the most recent actuarial 
45.18 	valuation.
45.19 	(3) effective January 1, 2024, and thereafter, a postretirement increase must be applied 
45.20 	each year to the amount of the monthly annuity or benefit of each annuitant or benefit 
45.21 	recipient who has been receiving an annuity or a benefit for at least 12 full months as of the 
45.22 	June 30 of the calendar year immediately before the adjustment, at the following rates:

45.23		from January 1, 2024, through December 31, 2024
	1.1 percent
	
45.24		from January 1, 2025, through December 31, 2025
	1.2 percent
	
45.25		from January 1, 2026, through December 31, 2026
	1.3 percent
	
45.26		from January 1, 2027, through December 31, 2027
	1.4 percent
	
45.27		from January 1, 2028, and thereafter
	1.5 percent
	
45.28 	(4) effective January 1, 2024, and thereafter, for each annuitant or benefit recipient who 
45.29 	has been receiving an annuity or a benefit for at least one full month, but less than 12 full 
45.30 	months, as of the June 30 of the calendar year immediately before the adjustment, an annual 
45.31 	postretirement increase of 1/12 of the applicable percentage for each month that the person 
45.32 	has been receiving an annuity or benefit must be applied to the amount of the monthly 
45.33 	annuity or benefit of the annuitant or benefit recipient. The applicable percentages are the 
45.34 	following:

46.1		from January 1, 2024, through December 31, 2024
	1.1 percent
	
46.2		from January 1, 2025, through December 31, 2025
	1.2 percent
	
46.3		from January 1, 2026, through December 31, 2026
	1.3 percent
	
46.4		from January 1, 2027, through December 31, 2027
	1.4 percent
	
46.5		from January 1, 2028, and thereafter
	1.5 percent
	
46.6 	(d) (b) An increase in annuity or benefit payments under this section must be made 
46.7 	automatically unless written notice is filed by the annuitant or benefit recipient with the 
46.8 	executive director of the Teachers Retirement Association requesting that the increase not 
46.9 	be made.
46.10 	(e) (c) The retirement annuity payable to a person who retires before becoming eligible 
46.11 	for Social Security benefits and who has elected the optional payment as provided in section 
46.12 	354.35 must be treated as the sum of a period-certain retirement annuity and a life retirement 
46.13 	annuity for the purposes of any postretirement adjustment. The period-certain retirement 
46.14 	annuity plus the life retirement annuity must be the annuity amount payable until age 62, 
46.15 	65, or normal retirement age, as selected by the member at retirement, for an annuity amount 
46.16 	payable under section 354.35. A postretirement adjustment granted on the period-certain 
46.17 	retirement annuity must terminate when the period-certain retirement annuity terminates.
46.18 	(d) Members who retire on or after July 1, 2024, are entitled to an annual postretirement 
46.19 	adjustment of the member's retirement annuity, effective as of each January 1, beginning 
46.20 	with the year following the year in which the member attains normal retirement age, as 
46.21 	follows:
46.22 	(1) if a member has been receiving an annuity for at least 12 full months as of the June 
46.23 	30 of the calendar year immediately before the date of the adjustment, a postretirement 
46.24 	increase equal to the percentage specified in paragraph (a), clause (3), must be applied, 
46.25 	effective on January 1, to the amount of the member's monthly annuity;
46.26 	(2) if a member has been receiving an annuity for at least one full month, but less than 
46.27 	12 full months as of the June 30 of the calendar year immediately before the date of 
46.28 	adjustment, a postretirement increase of 1/12 of the applicable percentage specified in 
46.29 	paragraph (a), clause (4), for each month that the member has been receiving an annuity 
46.30 	must be applied, effective on January 1, to the amount of the member's monthly annuity; 
46.31 	or
46.32 	(3) if a member has been receiving an annuity for fewer than seven months as of the 
46.33 	January 1 of the year following the year in which the member attains normal retirement 
47.1 	age, a postretirement adjustment shall be applied effective as of the next January 1. The 
47.2 	amount of the adjustment shall be determined under clause (2).
47.3 	(e) Paragraph (d) does not apply to members who retire under section 354.44, subdivision 
47.4 	6, paragraph (c), clause (3), or who retire when the member is at least age 62 and has at 
47.5 	least 30 years of service under section 354.44, subdivision 6, paragraph (c), (d), (e), or (f), 
47.6 	as applicable.

47.7 	Sec. 11. Minnesota Statutes 2016, section 356.415, subdivision 1e, is amended to read:
47.8 		Subd. 1e.Annual postretirement adjustments; State Patrol retirement plan. (a) 
47.9 	Retirement annuity, disability benefit, or survivor benefit recipients of the State Patrol 
47.10 	retirement plan are entitled to aan annual postretirement adjustment annually on, effective 
47.11 	as of each January 1 if the definition of funding stability under paragraph (b) has not been 
47.12 	met, as follows:
47.13 	(1) a postretirement increase of one percent must be applied each year, effective on 
47.14 	January 1, to the monthly annuity or benefit of each annuitant or benefit recipient who has 
47.15 	been receiving an annuity or a benefit for at least 12 full months as of the June 30 of the 
47.16 	calendar year immediately before the adjustment; and
47.17 	(2) for each annuitant or benefit recipient who has been receiving an annuity or a benefit 
47.18 	for at least one full month, but less than 12 full months as of the June 30 of the calendar 
47.19 	year immediately before the adjustment, an annual postretirement increase of 1/12 of one 
47.20 	percent for each month that the person has been receiving an annuity or benefit must be 
47.21 	applied to the amount of the monthly annuity or benefit of each annuitant or benefit recipient.
47.22 	(b) Increases under paragraph (a) for the State Patrol retirement plan terminate on 
47.23 	December 31 of the calendar year in which two prior consecutive actuarial valuations for 
47.24 	the plan prepared by the approved actuary under sections 356.214 and 356.215 and the 
47.25 	standards for actuarial work promulgated by the Legislative Commission on Pensions and 
47.26 	Retirement indicates that the market value of assets of the retirement plan equals or exceeds 
47.27 	85 percent of the actuarial accrued liability of the retirement plan. Thereafter, increases 
47.28 	under paragraph (a) become effective again on the December 31 of the calendar year in 
47.29 	which the actuarial valuation, or prior consecutive actuarial valuations for the plan prepared 
47.30 	by the approved actuary under sections 356.214 and 356.215 and the standards for actuarial 
47.31 	work promulgated by the Legislative Commission on Pensions and Retirement indicates 
47.32 	that the market value of the assets of the retirement plan equals or is less than 80 percent 
47.33 	of the actuarial accrued liability of the retirement plan for two years, or equals or is less 
48.1 	than 75 percent of the actuarial accrued liability of the retirement plan for one year and 
48.2 	increases under paragraph (c) commence after that date.
48.3 	(c) Retirement annuity, disability benefit, or survivor benefit recipients of the State Patrol 
48.4 	retirement plan are entitled to a postretirement adjustment annually on January 1, as follows:
48.5 	(1) a postretirement increase of 1.5 percent must be applied each year, effective on 
48.6 	January 1, to the monthly annuity or benefit of each annuitant or benefit recipient who has 
48.7 	been receiving an annuity or a benefit for at least 12 full months as of the June 30 of the 
48.8 	calendar year immediately before the adjustment; and
48.9 	(2) for each annuitant or benefit recipient who has been receiving an annuity or a benefit 
48.10 	for at least one full month, but less than 12 full months as of the June 30 of the calendar 
48.11 	year immediately before the adjustment, an annual postretirement increase of 1/12 of 1.5 
48.12 	percent for each month that the person has been receiving an annuity or benefit must be 
48.13 	applied.
48.14 	(d) Increases under paragraph (c) for the State Patrol retirement plan terminate on 
48.15 	December 31 of the calendar year in which two prior consecutive actuarial valuations 
48.16 	prepared by the approved actuary under sections 356.214 and 356.215 and the standards 
48.17 	for actuarial work adopted by the Legislative Commission on Pensions and Retirement 
48.18 	indicates that the market value of assets of the retirement plan equals or exceeds 90 percent 
48.19 	of the actuarial accrued liability of the retirement plan and increases under subdivision 1 
48.20 	recommence after that date.
48.21 	(e)(b) An increase in annuity or benefit payments under this subdivision must be made 
48.22 	automatically unless written notice is filed by the annuitant or benefit recipient with the 
48.23 	executive director of the applicable covered retirement plan requesting that the increase not 
48.24 	be made.

48.25 	Sec. 12. Minnesota Statutes 2016, section 356.415, subdivision 1f, is amended to read:
48.26 		Subd. 1f.Annual postretirement adjustments; Minnesota State Retirement System 
48.27 	judges retirement plan. (a) The increases provided under this subdivision are in lieu of 
48.28 	increases under subdivision 1 or 1a for retirement annuity, disability benefit, or survivor 
48.29 	benefit recipients of the judges retirement plan.
48.30 	(b)(a) Retirement annuity, disability benefit, or survivor benefit recipients of the judges 
48.31 	retirement plan are entitled to aan annual postretirement adjustment annually on, effective 
48.32 	as of each January 1,if the definition of funding stability under paragraph (b) has not been 
48.33 	met, as follows:
49.1 	(1) a postretirement increase of 1.75 percent must be applied each year, effective on 
49.2 	January 1, to the monthly annuity or benefit of each annuitant or benefit recipient who has 
49.3 	been receiving an annuity or a benefit for at least 12 full months as of the June 30 of the 
49.4 	calendar year immediately before the adjustment; and
49.5 	(2) for each annuitant or benefit recipient who has been receiving an annuity or a benefit 
49.6 	for at least one full month, but less than 12 full months as of the June 30 of the calendar 
49.7 	year immediately before the adjustment, an annual postretirement increase of 1/12 of 1.75 
49.8 	percent for each month that the person has been receiving an annuity or benefit must be 
49.9 	applied to the amount of the monthly annuity or benefit of each annuitant or benefit recipient.
49.10 	(c)(b) Increases under this subdivisionparagraph (a) terminate on December 31 of the 
49.11 	calendar year in which two prior consecutive actuarial valuations prepared by the approved 
49.12 	actuary under sections 356.214 and 356.215 and the standards for actuarial work promulgated 
49.13 	by the Legislative Commission on Pensions and Retirement indicates that the market value 
49.14 	of assets of the judges retirement plan equals or exceeds 70 percent of the actuarial accrued 
49.15 	liability of the retirement plan.and increases under subdivision 1 or 1a, whichever is 
49.16 	applicable,paragraph (c) begin on the January 1 next followingafter that date.
49.17 	(c) Retirement annuity, disability benefit, or survivor benefit recipients of the judges 
49.18 	retirement plan are entitled to a postretirement adjustment annually, effective as of each 
49.19 	January 1 if the definition of funding stability under paragraph (d) has not been met, as 
49.20 	follows:
49.21 	(1) a postretirement increase of two percent must be applied each year to the monthly 
49.22 	annuity or benefit of each annuitant or benefit recipient who has been receiving an annuity 
49.23 	or a benefit for at least 12 full months as of the June 30 of the calendar year immediately 
49.24 	before the adjustment; and
49.25 	(2) for each annuitant or benefit recipient who has been receiving an annuity or a benefit 
49.26 	for at least one full month, but less than 12 full months as of the June 30 of the calendar 
49.27 	year immediately before the adjustment, an annual postretirement increase of 1/12 of two 
49.28 	percent for each month that the person has been receiving an annuity or benefit must be 
49.29 	applied to the amount of the monthly annuity or benefit of the annuitant or benefit recipient.
49.30 	(d) Increases under paragraph (c) terminate on December 31 of the calendar year in 
49.31 	which two prior consecutive actuarial valuations prepared by the approved actuary under 
49.32 	section 356.214 and the standards for actuarial work promulgated by the Legislative 
49.33 	Commission on Pensions and Retirement indicate that the market value of assets of the 
50.1 	judges retirement plan equals or exceeds 90 percent of the actuarial accrued liability of the 
50.2 	retirement plan and increases under paragraph (e) begin after that date.
50.3 	(e) Retirement annuity, disability benefit, or survivor benefit recipients of the judges 
50.4 	retirement plan are entitled to a postretirement adjustment annually, effective as of each 
50.5 	January 1, as follows:
50.6 	(1) a postretirement increase of 2.5 percent must be applied each year to the monthly 
50.7 	annuity or benefit of each annuitant or benefit recipient who has been receiving an annuity 
50.8 	or a benefit for at least 12 full months as of the June 30 of the calendar year immediately 
50.9 	before the adjustment; and
50.10 	(2) for each annuitant or benefit recipient who has been receiving an annuity or a benefit 
50.11 	for at least one full month, but less than 12 full months as of the June 30 of the calendar 
50.12 	year immediately before the adjustment, an annual postretirement increase of 1/12 of 2.5 
50.13 	percent for each month that the person has been receiving an annuity or benefit must be 
50.14 	applied to the amount of the monthly annuity or benefit of the annuitant or benefit recipient.
50.15 	(d)(f) An increase in annuity or benefit payments under this subdivision must be made 
50.16 	automatically unless written notice is filed by the annuitant or benefit recipient with the 
50.17 	executive director of the applicable covered retirement plan requesting that the increase not 
50.18 	be made.

50.19 	Sec. 13. Minnesota Statutes 2016, section 356.415, is amended by adding a subdivision 
50.20 	to read:
50.21 		Subd. 1g.Annual postretirement adjustments; PERA local government correctional 
50.22 	retirement plan. (a) Annuities, disability benefits, and survivor benefits being paid from 
50.23 	the local government correctional retirement plan of the Public Employees Retirement 
50.24 	Association shall be increased effective each January 1 by the percentage of increase 
50.25 	determined under this subdivision. The increase to the annuity or benefit shall be determined 
50.26 	by multiplying the monthly amount of the annuity or benefit by the percentage of increase 
50.27 	specified in paragraph (b), after taking into account any reduction to the percentage of 
50.28 	increase required under paragraph (c).
50.29 	(b) The percentage of increase shall be one percent unless the federal Social Security 
50.30 	Administration has announced a cost-of-living adjustment pursuant to United States Code, 
50.31 	title 42, section 415(i), in the last quarter of the preceding calendar year that is greater than 
50.32 	one percent. If the cost-of-living adjustment announced by the federal Social Security 
50.33 	Administration is greater than one percent, the percentage of increase shall be the same as 
51.1 	the cost-of-living adjustment announced by the federal Social Security Administration, but 
51.2 	in no event may the percentage of increase exceed the applicable maximum percentage. 
51.3 	The applicable maximum percentage is 2.5 percent, until either of the following occurs, in 
51.4 	which case the applicable maximum percentage is 1.5 percent and remains at 1.5 percent 
51.5 	thereafter:
51.6 	(1) the market value of assets equals or is less than 85 percent of the actuarial accrued 
51.7 	liabilities as reported by the plan's actuary in two consecutive annual actuarial valuations; 
51.8 	or
51.9 	(2) the market value of assets equals or is less than 80 percent of the actuarial accrued 
51.10 	liabilities as reported by the plan's actuary in the most recent annual actuarial valuation.
51.11 	(c)(1) If the recipient of an annuity, disability benefit, or survivor's benefit has been 
51.12 	receiving the annuity or benefit for at least 12 full months as of the June 30 of the calendar 
51.13 	year immediately before the effective date of the increase, there is no reduction in the 
51.14 	percentage of increase.
51.15 	(2) If the recipient of an annuity, disability benefit, or survivor's benefit has been receiving 
51.16 	the annuity or benefit for at least one month, but less than 12 full months, as of the June 30 
51.17 	of the calendar year immediately preceding the effective date of the increase, the percentage 
51.18 	of increase is multiplied by a fraction, the numerator of which is the number of months the 
51.19 	annuity or benefit was received as of June 30 of the preceding calendar year and the 
51.20 	denominator of which is 12.
51.21 	(d) An increase in annuity or benefit payments under this section must be made 
51.22 	automatically unless written notice is filed by the recipient with the executive director of 
51.23 	the Public Employees Retirement Association requesting that the increase not be made.

51.24 	Sec. 14. STUDY.
 51.25 	Before December 31, 2020, the Legislative Commission on Pensions and Retirement 
51.26 	must conduct a study of postretirement adjustments for the covered plans as defined in 
51.27 	Minnesota Statutes, section 356.415, subdivision 2, and the St. Paul Teachers Retirement 
51.28 	Fund Association. The study shall take into account the purpose of postretirement adjustments 
51.29 	and whether governing statutes are consistent with the purpose of postretirement adjustments. 
51.30 	The study shall also consider alternative methodologies for determining postretirement 
51.31 	adjustments and evaluate the new methodology to be used by the Public Employees 
51.32 	Retirement Association under this act. The Legislative Commission on Pensions and 
51.33 	Retirement shall report its conclusions based on the study during the 2021 legislative session.

52.1 	Sec. 15. EFFECTIVE DATE.
 52.2 	Sections 1 to 14 are effective June 30, 2018.

52.3 	ARTICLE 6
52.4 	INTEREST RATE CONFORMING CHANGES

52.5 	Section 1. Minnesota Statutes 2016, section 3A.03, subdivision 2, is amended to read:
52.6 		Subd. 2.Refund.  (a) A former member who has made contributions under subdivision 
52.7 	1 and who is no longer a member of the legislature is entitled to receive, upon written 
52.8 	application to the executive director on a form prescribed by the executive director, a refund 
52.9 	from the general fund of all contributions credited to the member's account with interest 
52.10 	computed as provided in section 352.22, subdivision 2.
52.11 	(b) The refund of contributions as provided in paragraph (a) terminates all rights of a 
52.12 	former member of the legislature and the survivors of the former member under this chapter.
52.13 	(c) If the former member of the legislature again becomes a member of the legislature 
52.14 	after having taken a refund as provided in paragraph (a), the member is a member of the 
52.15 	unclassified employees retirement program of the Minnesota State Retirement System.
52.16 	(d) However, the member may reinstate the rights and credit for service previously 
52.17 	forfeited under this chapter if the member repays all refunds taken, plus interest at the rate 
52.18 	of 8.5 percent until June 30, 2015, and eight percent thereafterapplicable annual rate or 
52.19 	rates specified in section 356.59, subdivision 2, compounded annually, from the date on 
52.20 	which the refund was taken to the date on which the refund is repaid.
52.21 	(e) A member of the legislature who has received a refund from any of the retirement 
52.22 	plans specified in section 356.311, paragraph (b), may repay the refund to the respective 
52.23 	plan under such terms and conditions consistent with the law governing the retirement plan 
52.24 	if the law governing the plan permits the repayment of refunds. If the total amount to be 
52.25 	repaid, including principal and interest exceeds $2,000, repayment may be made in three 
52.26 	equal installments over a period of 18 months, with the interest accrued during the period 
52.27 	of the repayment added to the final installment.
52.28 	(e)(f) No person may be required to apply for or to accept a refund.

52.29 	Sec. 2. Minnesota Statutes 2016, section 352.01, subdivision 13a, is amended to read:
52.30 		Subd. 13a.Reduced salary during period of workers' compensation. An employee 
52.31 	on leave of absence receiving temporary workers' compensation payments and a reduced 
53.1 	salary or no salary from the employer who is entitled to allowable service credit for the 
53.2 	period of absence, may make payment to the fund for the difference between salary received, 
53.3 	if any, and the salary the employee would normally receive if not on leave of absence during 
53.4 	the period. The employee shall pay an amount equal to the employee and employer 
53.5 	contribution rate under section 352.04, subdivisions 2 and 3, on the differential salary amount 
53.6 	for the period of the leave of absence.
53.7 	The employing department, at its option, may pay the employer amount on behalf of its 
53.8 	employees. Payment made under this subdivision must include interest at the rate of 8.5 
53.9 	percent until June 30, 2015, and eight percent thereafter per year applicable annual rate or 
53.10 	rates specified in section 356.59, subdivision 2, and must be completed within one year of 
53.11 	the return from leave of absence.

53.12 	Sec. 3. Minnesota Statutes 2016, section 352.017, subdivision 2, is amended to read:
53.13 		Subd. 2.Purchase procedure. (a) An employee covered by a plan specified in this 
53.14 	chapter may purchase credit for allowable service in that plan for a period specified in 
53.15 	subdivision 1 if the employee makes a payment as specified in paragraph (b) or (c), whichever 
53.16 	applies. The employing unit, at its option, may pay the employer portion of the amount 
53.17 	specified in paragraph (b) on behalf of its employees.
53.18 	(b) If payment is received by the executive director within one year from the date the 
53.19 	employee returned to work following the authorized leave, the payment amount is equal to 
53.20 	the employee and employer contribution rates specified in law for the applicable plan at the 
53.21 	end of the leave period multiplied by the employee's hourly rate of salary on the date of 
53.22 	return from the leave of absence and by the days and months of the leave of absence for 
53.23 	which the employee is eligible for allowable service credit. The payment must include 
53.24 	compound interest at the monthly rate of 0.71 percent until June 30, 2015, and 0.667 percent 
53.25 	per month thereafterapplicable monthly rate or rates specified in section 356.59, subdivision 
53.26 	2, from the last day of the leave period until the last day of the month in which payment is 
53.27 	received. If payment is received by the executive director after one year, the payment amount 
53.28 	is the amount determined under section 356.551. Payment under this paragraph must be 
53.29 	made before the date of termination from public employment covered under this chapter.
53.30 	(c) If the employee terminates employment covered by this chapter during the leave or 
53.31 	following the leave rather than returning to covered employment, payment must be received 
53.32 	by the executive director within 30 days after the termination date. The payment amount is 
53.33 	equal to the employee and employer contribution rates specified in law for the applicable 
54.1 	plan on the day prior to the termination date, multiplied by the employee's hourly rate of 
54.2 	salary on that date and by the days and months of the leave of absence prior to termination.

54.3 	Sec. 4. Minnesota Statutes 2016, section 352.04, subdivision 8, is amended to read:
54.4 		Subd. 8.Department required to pay omitted salary deductions. (a) If a department 
54.5 	fails to take deductions past due for a period of 60 days or less from an employee's salary 
54.6 	as provided in this section, those deductions must be taken on later payroll abstracts.
54.7 	(b) If a department fails to take deductions past due for a period in excess of 60 days 
54.8 	from an employee's salary as provided in this section, the department, and not the employee, 
54.9 	must pay on later payroll abstracts the employee and employer contributions and an amount 
54.10 	equivalent to 8.5 percent until June 30, 2015, and eight percent thereafter of the total amount 
54.11 	due in lieu of interest, or if the delay in payment exceeds one year, 8.5 percent until June 
54.12 	30, 2015, and eight percent thereafter compound annual interest. at the applicable annual 
54.13 	rate or rates specified in section 356.59, subdivision 2, compounded annually, from the date 
54.14 	the employee and employer contributions should have been deducted to the date payment 
54.15 	of the total amount due is paid by the department.
54.16 	(c) If a department fails to take deductions past due for a period of 60 days or less and 
54.17 	the employee is no longer in state service so that the required deductions cannot be taken 
54.18 	from the salary of the employee, the department must nevertheless pay the required employer 
54.19 	contributions. If any department fails to take deductions past due for a period in excess of 
54.20 	60 days and the employee is no longer in state service, the omitted contributions must be 
54.21 	recovered under paragraph (b).
54.22 	(d) If an employee from whose salary required deductions were past due for a period of 
54.23 	60 days or less leaves state service before the payment of the omitted deductions and 
54.24 	subsequently returns to state service, the unpaid amount is considered the equivalent of a 
54.25 	refund. The employee accrues no right by reason of the unpaid amount, except that the 
54.26 	employee may pay the amount of omitted deductions as provided in section 352.23.

54.27 	Sec. 5. Minnesota Statutes 2016, section 352.04, subdivision 9, is amended to read:
54.28 		Subd. 9.Erroneous deductions, canceled warrants. (a) Deductions taken from the 
54.29 	salary of an employee for the retirement fund in excess of required amounts must, upon 
54.30 	discovery and verification by the department making the deduction, be refunded to the 
54.31 	employee.
55.1 	(b) If a deduction for the retirement fund is taken from a salary warrant or check, and 
55.2 	the check is canceled or the amount of the warrant or check returned to the funds of the 
55.3 	department making the payment, the sum deducted, or the part of it required to adjust the 
55.4 	deductions, must be refunded to the department or institution if the department applies for 
55.5 	the refund on a form furnished by the director. The department's payments must likewise 
55.6 	be refunded to the department.
55.7 	(c) If erroneous employee deductions and employer contributions are caused by an error 
55.8 	in plan coverage involving the plan and any other plans specified in section 356.99, that 
55.9 	section applies. If the employee should have been covered by the plan governed by chapter 
55.10 	352D, 353D, 354B, or 354D, the employee deductions and employer contributions taken 
55.11 	in error must be directly transferred to the applicable employee's account in the correct 
55.12 	retirement plan, with interest at the rate of 0.71 percent per month until June 30, 2015, and 
55.13 	0.667 percent per month thereafter applicable monthly rate or rates specified in section 
55.14 	356.59, subdivision 2, compounded annually, from the first day of the month following the 
55.15 	month in which coverage should have commenced in the correct defined contribution plan 
55.16 	until the end of the month in which the transfer occurs.

55.17 	Sec. 6. Minnesota Statutes 2016, section 352.23, is amended to read:
55.18 	352.23 TERMINATION OF RIGHTS; REPAYMENT OF REFUND.
55.19 	(a) When any employee accepts a refund as provided in section 352.22, all existing 
55.20 	allowable service credits and all rights and benefits to which the employee was entitled 
55.21 	before accepting the refund terminate.
55.22 	(b) Terminated service credits and rights must not again be restored until the former 
55.23 	employee acquires at least six months of allowable service credit after taking the last refund. 
55.24 	In that event, the employee may repay all refunds previously taken from the retirement fund.
55.25 	(c) Repayment of refunds entitles the employee only to credit for service covered by (1) 
55.26 	salary deductions; (2) payments previously made in lieu of salary deductions as permitted 
55.27 	under law in effect when the payment in lieu of deductions was made; (3) payments made 
55.28 	to obtain credit for service as permitted by laws in effect when payment was made; and (4) 
55.29 	allowable service previously credited while receiving temporary workers' compensation as 
55.30 	provided in section 352.01, subdivision 11, paragraph (a), clause (3).
55.31 	(d) Payments under this section for repayment of refunds are to be paid with interest at 
55.32 	the rate of 8.5 percent until June 30, 2015, and eight percent thereafterapplicable annual 
55.33 	rate or rates specified in section 356.59, subdivision 2, compounded annually, from the date 
56.1 	the refund was taken until the date the refund is repaid. They may be paid in a lump sum 
56.2 	or by payroll deduction in the manner provided in section 352.04. Payment may be made 
56.3 	in a lump sum up to six months after termination from service.

56.4 	Sec. 7. Minnesota Statutes 2016, section 352.27, is amended to read:
56.5 	352.27 CREDIT FOR BREAK IN SERVICE TO PROVIDE UNIFORMED 
56.6 	SERVICE.
56.7 	(a) An employee who is absent from employment by reason of service in the uniformed 
56.8 	services, as defined in United States Code, title 38, section 4303(13), and who returns to 
56.9 	state service upon discharge from service in the uniformed service within the time frames 
56.10 	required in United States Code, title 38, section 4312(e), may obtain service credit for the 
56.11 	period of the uniformed service as further specified in this section, provided that the employee 
56.12 	did not separate from uniformed service with a dishonorable or bad conduct discharge or 
56.13 	under other than honorable conditions.
56.14 	(b) The employee may obtain credit by paying into the fund an equivalent employee 
56.15 	contribution based upon the contribution rate or rates in effect at the time that the uniformed 
56.16 	service was performed multiplied by the full and fractional years being purchased and 
56.17 	applied to the annual salary rate. The annual salary rate is the average annual salary during 
56.18 	the purchase period that the employee would have received if the employee had continued 
56.19 	to be employed in covered employment rather than to provide uniformed service, or, if the 
56.20 	determination of that rate is not reasonably certain, the annual salary rate is the employee's 
56.21 	average salary rate during the 12-month period of covered employment rendered immediately 
56.22 	preceding the period of the uniformed service.
56.23 	(c) The equivalent employer contribution and, if applicable, the equivalent additional 
56.24 	employer contribution provided in this chapter must be paid by the department employing 
56.25 	the employee from funds available to the department at the time and in the manner provided 
56.26 	in this chapter, using the employer and additional employer contribution rate or rates in 
56.27 	effect at the time that the uniformed service was performed, applied to the same annual 
56.28 	salary rate or rates used to compute the equivalent employee contribution.
56.29 	(d) If the employee equivalent contributions provided in this section are not paid in full, 
56.30 	the employee's allowable service credit must be prorated by multiplying the full and fractional 
56.31 	number of years of uniformed service eligible for purchase by the ratio obtained by dividing 
56.32 	the total employee contribution received by the total employee contribution otherwise 
56.33 	required under this section.
57.1 	(e) To receive service credit under this section, the contributions specified in this section 
57.2 	must be transmitted to the Minnesota State Retirement System during the period which 
57.3 	begins with the date on which the individual returns to state service and which has a duration 
57.4 	of three times the length of the uniformed service period, but not to exceed five years. If 
57.5 	the determined payment period is less than one year, the contributions required under this 
57.6 	section to receive service credit may be made within one year of the discharge date.
57.7 	(f) The amount of service credit obtainable under this section may not exceed five years 
57.8 	unless a longer purchase period is required under United States Code, title 38, section 4312.
57.9 	(g) The employing unit shall pay interest on all equivalent employee and employer 
57.10 	contribution amounts payable under this section. Interest must be computed at the rate of 
57.11 	8.5 percent until June 30, 2015, and eight percent thereafterat the applicable annual rate or 
57.12 	rates specified in section 356.59, subdivision 2, compounded annually, from the end of each 
57.13 	fiscal year of the leave or the break in service to the end of the month in which the payment 
57.14 	is received.

57.15 	Sec. 8. Minnesota Statutes 2016, section 352.955, subdivision 3, is amended to read:
57.16 		Subd. 3.Payment of additional equivalent contributions. (a) An eligible employee 
57.17 	who is transferred to plan coverage and who elects to transfer past service credit under this 
57.18 	section must pay an additional member contribution for that prior service period. The 
57.19 	additional member contribution is the amount computed under paragraph (b), plus the greater 
57.20 	of the amount computed under paragraph (c), or 40 percent of the unfunded actuarial accrued 
57.21 	liability attributable to the past service credit transfer.
57.22 	(b) The executive director shall compute, for the most recent 12 months of service credit 
57.23 	eligible for transfer, or for the entire period eligible for transfer if less than 12 months, the 
57.24 	difference between the employee contribution rate or rates for the general state employees 
57.25 	retirement plan and the employee contribution rate or rates for the correctional state 
57.26 	employees retirement plan applied to the eligible employee's salary during that transfer 
57.27 	period, plus compound interest at the applicable monthly rate of 0.71 percent until June 30, 
57.28 	2015, and 0.667 percent per month thereafter or rates specified in section 356.59, subdivision 
57.29 	2.
57.30 	(c) The executive director shall compute, for any service credit being transferred on 
57.31 	behalf of the eligible employee and not included under paragraph (b), the difference between 
57.32 	the employee contribution rate or rates for the general state employees retirement plan and 
57.33 	the employee contribution rate or rates for the correctional state employees retirement plan 
57.34 	applied to the eligible employee's salary during that transfer period, plus compound interest 
58.1 	at the monthly rate of 0.71 percent until June 30, 2015, and 0.667 percent per month thereafter
58.2 	applicable monthly rate or rates specified in section 356.59, subdivision 2.
58.3 	(d) The executive director shall compute an amount using the process specified in 
58.4 	paragraph (b), but based on differences in employer contribution rates between the general 
58.5 	state employees retirement plan and the correctional state employees retirement plan rather 
58.6 	than employee contribution rates.
58.7 	(e) The executive director shall compute an amount using the process specified in 
58.8 	paragraph (c), but based on differences in employer contribution rates between the general 
58.9 	state employees retirement plan and the correctional state employees retirement plan rather 
58.10 	than employee contribution rates.
58.11 	(f) The additional equivalent member contribution under this subdivision must be paid 
58.12 	in a lump sum. Payment must accompany the election to transfer the prior service credit. 
58.13 	No transfer election or additional equivalent member contribution payment may be made 
58.14 	by a person or accepted by the executive director after the one year anniversary date of the 
58.15 	effective date of the retirement coverage transfer, or the date on which the eligible employee 
58.16 	terminates state employment, whichever is earlier.
58.17 	(g) If an eligible employee elects to transfer past service credit under this section and 
58.18 	pays the additional equivalent member contribution amount under paragraph (a), the 
58.19 	applicable department shall pay an additional equivalent employer contribution amount. 
58.20 	The additional employer contribution is the amount computed under paragraph (d), plus the 
58.21 	greater of the amount computed under paragraph (e), or 60 percent of the unfunded actuarial 
58.22 	accrued liability attributable to the past service credit transfer.
58.23 	(h) The unfunded actuarial accrued liability attributable to the past service credit transfer 
58.24 	is the present value of the benefit obtained by the transfer of the service credit to the 
58.25 	correctional state employees retirement plan reduced by the amount of the asset transfer 
58.26 	under subdivision 4, by the amount of the member contribution equivalent payment computed 
58.27 	under paragraph (b), and by the amount of the employer contribution equivalent payment 
58.28 	computed under paragraph (d).
58.29 	(i) The additional equivalent employer contribution under this subdivision must be paid 
58.30 	in a lump sum and must be paid within 30 days of the date on which the executive director 
58.31 	of the Minnesota State Retirement System certifies to the applicable department that the 
58.32 	employee paid the additional equivalent member contribution.

59.1 	Sec. 9. Minnesota Statutes 2016, section 352B.013, subdivision 2, is amended to read:
59.2 		Subd. 2.Purchase procedure. (a) An employee covered by the plan specified in this 
59.3 	chapter may purchase credit for allowable service in the plan for a period specified in 
59.4 	subdivision 1 if the employee makes a payment as specified in paragraph (b) or (c), whichever 
59.5 	applies. The employing unit, at its option, may pay the employer portion of the amount 
59.6 	specified in paragraph (b) on behalf of its employees.
59.7 	(b) If payment is received by the executive director within one year from the date the 
59.8 	employee returned to work following the authorized leave, the payment amount is equal to 
59.9 	the employee and employer contribution rates specified in section 352B.02 at the end of 
59.10 	the leave period multiplied by the employee's hourly rate of salary on the date of return 
59.11 	from the leave of absence and by the days and months of the leave of absence for which 
59.12 	the employee is eligible for allowable service credit. The payment must include compound 
59.13 	interest at the monthly rate of 0.71 percent until June 30, 2015, and 0.667 percent per month 
59.14 	thereafterapplicable monthly rate or rates specified in section 356.59, subdivision 2, from 
59.15 	the last day of the leave period until the last day of the month in which payment is received. 
59.16 	If payment is received by the executive director after one year from the date the employee 
59.17 	returned to work following the authorized leave, the payment amount is the amount 
59.18 	determined under section 356.551. Payment under this paragraph must be made before the 
59.19 	date of termination from public employment covered under this chapter.
59.20 	(c) If the employee terminates employment covered by this chapter during the leave or 
59.21 	following the leave rather than returning to covered employment, payment must be received 
59.22 	by the executive director within 30 days after the termination date. The payment amount is 
59.23 	equal to the employee and employer contribution rates specified in section 352B.02 on the 
59.24 	day prior to the termination date, multiplied by the employee's hourly rate of salary on that 
59.25 	date and by the days and months of the leave of absence prior to termination.

59.26 	Sec. 10. Minnesota Statutes 2016, section 352B.085, is amended to read:
59.27 	352B.085 SERVICE CREDIT FOR CERTAIN DISABILITY LEAVES OF 
59.28 	ABSENCE.
59.29 	A member on leave of absence receiving temporary workers' compensation payments 
59.30 	and a reduced salary or no salary from the employer who is entitled to allowable service 
59.31 	credit for the period of absence under section 352B.011, subdivision 3, paragraph (b), may 
59.32 	make payment to the fund for the difference between salary received, if any, and the salary 
59.33 	that the member would normally receive if the member was not on leave of absence during 
59.34 	the period. The member shall pay an amount equal to the member and employer contribution 
60.1 	rate under section 352B.02, subdivisions 1b and 1c, on the differential salary amount for 
60.2 	the period of the leave of absence. The employing department, at its option, may pay the 
60.3 	employer amount on behalf of the member. Payment made under this subdivision must 
60.4 	include interest at the rate of 8.5 percent until June 30, 2015, and eight percent thereafter 
60.5 	per year applicable annual rate or rates specified in section 356.59, subdivision 2, and must 
60.6 	be completed within one year of the member's return from the leave of absence.

60.7 	Sec. 11. Minnesota Statutes 2016, section 352B.086, is amended to read:
60.8 	352B.086 SERVICE CREDIT FOR UNIFORMED SERVICE.
60.9 	(a) A member who is absent from employment by reason of service in the uniformed 
60.10 	services, as defined in United States Code, title 38, section 4303(13), and who returns to 
60.11 	state employment in a position covered by the plan upon discharge from service in the 
60.12 	uniformed services within the time frame required in United States Code, title 38, section 
60.13 	4312(e), may obtain service credit for the period of the uniformed service, provided that 
60.14 	the member did not separate from uniformed service with a dishonorable or bad conduct 
60.15 	discharge or under other than honorable conditions.
60.16 	(b) The member may obtain credit by paying into the fund an equivalent member 
60.17 	contribution based on the member contribution rate or rates in effect at the time that the 
60.18 	uniformed service was performed multiplied by the full and fractional years being purchased 
60.19 	and applied to the annual salary rate. The annual salary rate is the average annual salary 
60.20 	during the purchase period that the member would have received if the member had continued 
60.21 	to provide employment services to the state rather than to provide uniformed service, or if 
60.22 	the determination of that rate is not reasonably certain, the annual salary rate is the member's 
60.23 	average salary rate during the 12-month period of covered employment rendered immediately 
60.24 	preceding the purchase period.
60.25 	(c) The equivalent employer contribution and, if applicable, the equivalent employer 
60.26 	additional contribution, must be paid by the employing unit, using the employer and employer 
60.27 	additional contribution rate or rates in effect at the time that the uniformed service was 
60.28 	performed, applied to the same annual salary rate or rates used to compute the equivalent 
60.29 	member contribution.
60.30 	(d) If the member equivalent contributions provided for in this section are not paid in 
60.31 	full, the member's allowable service credit must be prorated by multiplying the full and 
60.32 	fractional number of years of uniformed service eligible for purchase by the ratio obtained 
60.33 	by dividing the total member contributions received by the total member contributions 
60.34 	otherwise required under this section.
61.1 	(e) To receive allowable service credit under this section, the contributions specified in 
61.2 	this section must be transmitted to the fund during the period which begins with the date 
61.3 	on which the individual returns to state employment covered by the plan and which has a 
61.4 	duration of three times the length of the uniformed service period, but not to exceed five 
61.5 	years. If the determined payment period is calculated to be less than one year, the 
61.6 	contributions required under this section to receive service credit must be transmitted to the 
61.7 	fund within one year from the discharge date.
61.8 	(f) The amount of allowable service credit obtainable under this section may not exceed 
61.9 	five years, unless a longer purchase period is required under United States Code, title 38, 
61.10 	section 4312.
61.11 	(g) The employing unit shall pay interest on all equivalent member and employer 
61.12 	contribution amounts payable under this section. Interest must be computed at the rate of 
61.13 	8.5 percent until June 30, 2015, and eight percent thereafterapplicable annual rate or rates 
61.14 	specified in section 356.59, subdivision 2, compounded annually, from the end of each 
61.15 	fiscal year of the leave or break in service to the end of the month in which payment is 
61.16 	received.

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

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

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

62.22 	Sec. 15. Minnesota Statutes 2016, section 352D.12, is amended to read:
62.23 	352D.12 TRANSFER OF PRIOR SERVICE CONTRIBUTIONS.
62.24 	(a) An employee who is a participant in the unclassified program and who has prior 
62.25 	service credit in a covered plan under chapter 352, 353, 354, 354A, or 422A may, within 
62.26 	the time limits specified in this section, elect to transfer to the unclassified program prior 
62.27 	service contributions to one or more of those plans.
62.28 	(b) For participants with prior service credit in a plan governed by chapter 352, 353, 
62.29 	354, 354A, or 422A, "prior service contributions" means the accumulated employee and 
62.30 	equal employer contributions with interest at the rate of 8.5 percent until June 30, 2015, 
62.31 	and eight percent thereafterapplicable annual rate or rates specified in section 356.59, 
62.32 	subdivision 2, compounded annually, based on fiscal year balances.
63.1 	(c) If a participant has taken a refund from a retirement plan listed in this section, the 
63.2 	participant may repay the refund to that plan, notwithstanding any restrictions on repayment 
63.3 	to that plan, plus 8.5 percent interest until June 30, 2015, and eight percent interest thereafter
63.4 	with interest at the applicable annual rate or rates specified in section 356.59, subdivision 
63.5 	2, compounded annually, and have the accumulated employee and equal employer 
63.6 	contributions transferred to the unclassified program with interest at the rate of 8.5 percent 
63.7 	until June 30, 2015, and eight percent thereafter compounded annually based on fiscal year 
63.8 	balances. If a person repays a refund and subsequently elects to have the money transferred 
63.9 	to the unclassified program, the repayment amount, including interest, is added to the fiscal 
63.10 	year balance in the year which the repayment was made.
63.11 	(d) A participant electing to transfer prior service contributions credited to a retirement 
63.12 	plan governed by chapter 352, 353, 354, 354A, or 422A as provided under this section must 
63.13 	complete a written application for the transfer and repay any refund within one year of the 
63.14 	commencement of the employee's participation in the unclassified program.

63.15 	Sec. 16. Minnesota Statutes 2016, section 353.01, subdivision 16, is amended to read:
63.16 		Subd. 16.Allowable service; limits and computation. (a) "Allowable service" means:
63.17 	(1) service during years of actual membership in the course of which employee deductions 
63.18 	were withheld from salary and contributions were made at the applicable rates under section 
63.19 	353.27, 353.65, or 353E.03;
63.20 	(2) periods of service covered by payments in lieu of salary deductions under sections 
63.21 	353.27, subdivisions 12 and 12a, and 353.35;
63.22 	(3) service in years during which the public employee was not a member but for which 
63.23 	the member later elected, while a member, to obtain credit by making payments to the fund 
63.24 	as permitted by any law then in effect;
63.25 	(4) a period of authorized leave of absence during which the employee receives pay as 
63.26 	specified in subdivision 10, paragraph (a), clause (4) or (5), from which deductions for 
63.27 	employee contributions are made, deposited, and credited to the fund;
63.28 	(5) a period of authorized leave of absence without pay, or with pay that is not included 
63.29 	in the definition of salary under subdivision 10, paragraph (a), clause (4) or (5), for which 
63.30 	salary deductions are not authorized, and for which a member obtained service credit for 
63.31 	up to 12 months of the authorized leave period by payment under section 353.0161 or 
63.32 	353.0162, to the fund made in place of salary deductions;
64.1 	(6) a periodic, repetitive leave that is offered to all employees of a governmental 
64.2 	subdivision. The leave program may not exceed 208 hours per annual normal work cycle 
64.3 	as certified to the association by the employer. A participating member obtains service credit 
64.4 	by making employee contributions in an amount or amounts based on the member's average 
64.5 	salary, excluding overtime pay, that would have been paid if the leave had not been taken. 
64.6 	The employer shall pay the employer and additional employer contributions on behalf of 
64.7 	the participating member. The employee and the employer are responsible to pay interest 
64.8 	on their respective shares at the rate of 8.5 percent until June 30, 2015, and eight percent 
64.9 	thereafter applicable rate or rates specified in section 356.59, subdivision 3, compounded 
64.10 	annually, from the end of the normal cycle until full payment is made. An employer shall 
64.11 	also make the employer and additional employer contributions, plus 8.5 percent interest 
64.12 	until June 30, 2015, and eight percent interest thereafter at the applicable rate or rates 
64.13 	specified in section 356.59, subdivision 3, compounded annually, on behalf of an employee 
64.14 	who makes employee contributions but terminates public service. The employee contributions 
64.15 	must be made within one year after the end of the annual normal working cycle or within 
64.16 	30 days after termination of public service, whichever is sooner. The executive director 
64.17 	shall prescribe the manner and forms to be used by a governmental subdivision in 
64.18 	administering a periodic, repetitive leave. Upon payment, the member must be granted 
64.19 	allowable service credit for the purchased period;
64.20 	(7) an authorized temporary or seasonal layoff under subdivision 12, limited to three 
64.21 	months allowable service per authorized temporary or seasonal layoff in one calendar year. 
64.22 	An employee who has received the maximum service credit allowed for an authorized 
64.23 	temporary or seasonal layoff must return to public service and must obtain a minimum of 
64.24 	three months of allowable service subsequent to the layoff in order to receive allowable 
64.25 	service for a subsequent authorized temporary or seasonal layoff;
64.26 	(8) a period during which a member is absent from employment by a governmental 
64.27 	subdivision by reason of service in the uniformed services, as defined in United States Code, 
64.28 	title 38, section 4303(13), if the member returns to public service with the same governmental 
64.29 	subdivision upon discharge from service in the uniformed service within the time frames 
64.30 	required under United States Code, title 38, section 4312(e), provided that the member did 
64.31 	not separate from uniformed service with a dishonorable or bad conduct discharge or under 
64.32 	other than honorable conditions. The service must be credited if the member pays into the 
64.33 	fund equivalent employee contributions based upon the contribution rate or rates in effect 
64.34 	at the time that the uniformed service was performed multiplied by the full and fractional 
64.35 	years being purchased and applied to the annual salary rate. The annual salary rate is the 
65.1 	average annual salary during the purchase period that the member would have received if 
65.2 	the member had continued to be employed in covered employment rather than to provide 
65.3 	uniformed service, or, if the determination of that rate is not reasonably certain, the annual 
65.4 	salary rate is the member's average salary rate during the 12-month period of covered 
65.5 	employment rendered immediately preceding the period of the uniformed service. Payment 
65.6 	of the member equivalent contributions must be made during a period that begins with the 
65.7 	date on which the individual returns to public employment and that is three times the length 
65.8 	of the military leave period, or within five years of the date of discharge from the military 
65.9 	service, whichever is less. If the determined payment period is less than one year, the 
65.10 	contributions required under this clause to receive service credit may be made within one 
65.11 	year of the discharge date. Payment may not be accepted following 30 days after termination 
65.12 	of public service under subdivision 11a. If the member equivalent contributions provided 
65.13 	for in this clause are not paid in full, the member's allowable service credit must be prorated 
65.14 	by multiplying the full and fractional number of years of uniformed service eligible for 
65.15 	purchase by the ratio obtained by dividing the total member contributions received by the 
65.16 	total member contributions otherwise required under this clause. The equivalent employer 
65.17 	contribution, and, if applicable, the equivalent additional employer contribution must be 
65.18 	paid by the governmental subdivision employing the member if the member makes the 
65.19 	equivalent employee contributions. The employer payments must be made from funds 
65.20 	available to the employing unit, using the employer and additional employer contribution 
65.21 	rate or rates in effect at the time that the uniformed service was performed, applied to the 
65.22 	same annual salary rate or rates used to compute the equivalent member contribution. The 
65.23 	governmental subdivision involved may appropriate money for those payments. The amount 
65.24 	of service credit obtainable under this section may not exceed five years unless a longer 
65.25 	purchase period is required under United States Code, title 38, section 4312. The employing 
65.26 	unit shall pay interest on all equivalent member and employer contribution amounts payable 
65.27 	under this clause. Interest must be computed at the rate of 8.5 percent until June 30, 2015, 
65.28 	and eight percent thereafter applicable rate or rates specified in section 356.59, subdivision 
65.29 	3, compounded annually, from the end of each fiscal year of the leave or the break in service 
65.30 	to the end of the month in which the payment is received. Upon payment, the employee 
65.31 	must be granted allowable service credit for the purchased period; or
65.32 	(9) a period specified under section 353.0162.
65.33 	(b) No member may receive more than 12 months of allowable service credit in a year 
65.34 	either for vesting purposes or for benefit calculation purposes.
66.1 	(c) For an active member who was an active member of the former Minneapolis 
66.2 	Firefighters Relief Association on December 29, 2011, "allowable service" is the period of 
66.3 	service credited by the Minneapolis Firefighters Relief Association as reflected in the 
66.4 	transferred records of the association up to December 30, 2011, and the period of service 
66.5 	credited under paragraph (a), clause (1), after December 30, 2011. For an active member 
66.6 	who was an active member of the former Minneapolis Police Relief Association on December 
66.7 	29, 2011, "allowable service" is the period of service credited by the Minneapolis Police 
66.8 	Relief Association as reflected in the transferred records of the association up to December 
66.9 	30, 2011, and the period of service credited under paragraph (a), clause (1), after December 
66.10 	30, 2011.

66.11 	Sec. 17. Minnesota Statutes 2016, section 353.0162, is amended to read:
66.12 	353.0162 REDUCED SALARY PERIODS SALARY CREDIT PURCHASE.
66.13 	(a) A member may purchase additional salary credit for a period specified in this section.
66.14 	(b) The applicable period is a period during which the member is receiving a reduced 
66.15 	salary from the employer while the member is:
66.16 	(1) receiving temporary workers' compensation payments related to the member's service 
66.17 	to the public employer;
66.18 	(2) on an authorized leave of absence; or
66.19 	(3) on an authorized partial paid leave of absence as a result of a budgetary or salary 
66.20 	savings program offered or mandated by a governmental subdivision.
66.21 	(c) The differential salary amount is the difference between the average monthly salary 
66.22 	received by the member during the period of reduced salary under this section and the 
66.23 	average monthly salary of the member, excluding overtime, on which contributions to the 
66.24 	applicable plan were made during the period of the last six months of covered employment 
66.25 	occurring immediately before the period of reduced salary, applied to the member's normal 
66.26 	employment period, measured in hours or otherwise, as applicable.
66.27 	(d) To receive eligible salary credit, the member shall pay an amount equal to:
66.28 	(1) the applicable employee contribution rate under section 353.27, subdivision 2; 353.65, 
66.29 	subdivision 2; or 353E.03, subdivision 1, as applicable, multiplied by the differential salary 
66.30 	amount;
67.1 	(2) plus an employer equivalent payment equal to the applicable employer contribution 
67.2 	rate in section 353.27, subdivision 3; 353.65, subdivision 3; or 353E.03, subdivision 2, as 
67.3 	applicable, multiplied by the differential salary amount;
67.4 	(3) plus, if applicable, an equivalent employer additional amount equal to the additional 
67.5 	employer contribution rate in section 353.27, subdivision 3a, multiplied by the differential 
67.6 	salary amount.
67.7 	(e) The employer, by appropriate action of its governing body and documented in its 
67.8 	official records, may pay the employer equivalent contributions and, as applicable, the 
67.9 	equivalent employer additional contributions on behalf of the member.
67.10 	(f) Payment under this section must include interest on the contribution amount or 
67.11 	amounts, whichever applies, at an 8.5 percent annual rate until June 30, 2015, and at an 
67.12 	eight percent annual rate thereafter the applicable rate or rates specified in section 356.59, 
67.13 	subdivision 3, compounded annually, prorated for applicablethe number of months, if less 
67.14 	than 12 months, from the date on which the period of reduced salary specified under this 
67.15 	section terminates to the date on which the payment or payments are received by the 
67.16 	executive director. Payment under this section must be completed within the earlier of 30 
67.17 	days from termination of public service by the employee under section 353.01, subdivision 
67.18 	11a, or one year after the termination of the period specified in paragraph (b), as further 
67.19 	restricted under this section.
67.20 	(g) The period for which additional allowable salary credit may be purchased is limited 
67.21 	to the period during which the person receives temporary workers' compensation payments 
67.22 	or for those business years in which the governmental subdivision offers or mandates a 
67.23 	budget or salary savings program, as certified to the executive director by a resolution of 
67.24 	the governing body of the governmental subdivision. For an authorized leave of absence, 
67.25 	the period for which allowable salary credit may be purchased may not exceed 12 months 
67.26 	of authorized leave.
67.27 	(h) To purchase salary credit for a subsequent period of temporary workers' compensation 
67.28 	benefits or subsequent authorized medical leave of absence, the member must return to 
67.29 	public service and render a minimum of three months of allowable service.

67.30 	Sec. 18. Minnesota Statutes 2017 Supplement, section 353.27, subdivision 3c, is amended 
67.31 	to read:
67.32 		Subd. 3c.Former MERF members; member and employer contributions. (a) For 
67.33 	the period July 1, 2015, through December 31, 2031, the member contributions for former 
68.1 	members of the Minneapolis Employees Retirement Fund and by the former Minneapolis 
68.2 	Employees Retirement Fund-covered employing units are governed by this subdivision.
68.3 	(b) The member contribution for a public employee who was a member of the former 
68.4 	Minneapolis Employees Retirement Fund on June 29, 2010, is 9.75 percent of the salary of 
68.5 	the employee.
68.6 	(c) The employer regular contribution with respect to a public employee who was a 
68.7 	member of the former Minneapolis Employees Retirement Fund on June 29, 2010, is 9.75 
68.8 	percent of the salary of the employee.
68.9 	(d) The annual employer supplemental contribution is the employing unit's share of 
68.10 	$31,000,000. For calendar years 2017 and 2018, the employer supplemental contribution 
68.11 	is the employing unit's share of $21,000,000.
68.12 	(e) Each employing unit's share under paragraph (d) is the amount determined from an 
68.13 	allocation between each employing unit in the portion equal to the unit's employer 
68.14 	supplemental contribution paid or payable under Minnesota Statutes 2012, section 353.50, 
68.15 	during calendar year 2014.
68.16 	(f) The employer supplemental contribution amount under paragraph (d) for calendar 
68.17 	year 2015 must be invoiced by the executive director of the Public Employees Retirement 
68.18 	Association by July 1, 2015. The calendar year 2015 payment is payable in a single amount 
68.19 	on or before September 30, 2015. For subsequent calendar years, the employer supplemental 
68.20 	contribution under paragraph (d) must be invoiced on January 31 of each year and is payable 
68.21 	in two parts, with the first half payable on or before July 31 and with the second half payable 
68.22 	on or before December 15. Late payments are payable with compound interest, compounded 
68.23 	annually, at the rate of 0.71 percentapplicable rate or rates specified in section 356.59, 
68.24 	subdivision 3, per month for each month or portion of a month that has elapsed after the 
68.25 	due date.
68.26 	(g) The employer supplemental contribution under paragraph (d) terminates on December 
68.27 	31, 2031.

68.28 	Sec. 19. Minnesota Statutes 2016, section 353.27, subdivision 7a, is amended to read:
68.29 		Subd. 7a.Deductions or contributions transmitted by error. (a) If employee deductions 
68.30 	and employer contributions under this section, section 353.50, 353.65, or 353E.03 were 
68.31 	erroneously transmitted to the association, but should have been transmitted to a plan covered 
68.32 	by chapter 352D, 353D, 354B, or 354D, the executive director shall transfer the erroneous 
68.33 	employee deductions and employer contributions to the appropriate retirement fund or 
69.1 	individual account, as applicable. The time limitations specified in subdivisions 7 and 12 
69.2 	do not apply. The transfer to the applicable defined contribution plan account must include 
69.3 	interest at the rate of 0.71 percent per month until June 30, 2015, and 0.667 percentapplicable 
69.4 	rate or rates specified in section 356.59, subdivision 3, per month thereafter, compounded 
69.5 	annually, from the first day of the month following the month in which coverage should 
69.6 	have commenced in the defined contribution plan until the end of the month in which the 
69.7 	transfer occurs.
69.8 	(b) A potential transfer under paragraph (a) that is reasonably determined to cause the 
69.9 	plan to fail to be a qualified plan under section 401(a) of the federal Internal Revenue Code, 
69.10 	as amended, must not be made by the executive director of the association. Within 30 days 
69.11 	after being notified by the Public Employees Retirement Association of an unmade potential 
69.12 	transfer under this paragraph, the employer of the affected person must transmit an amount 
69.13 	representing the applicable salary deductions and employer contributions, without interest, 
69.14 	to the retirement fund of the appropriate Minnesota public pension plan, or to the applicable 
69.15 	individual account if the proper coverage is by a defined contribution plan. The association 
69.16 	must provide the employing unit a credit for the amount of the erroneous salary deductions 
69.17 	and employer contributions against future contributions from the employer. If the employing 
69.18 	unit receives a credit under this paragraph, the employing unit is responsible for refunding 
69.19 	to the applicable employee any amount that had been erroneously deducted from the person's 
69.20 	salary.
69.21 	(c) If erroneous employee deductions and employer contributions reflect a plan coverage 
69.22 	error involving any Public Employees Retirement Association plan specified in section 
69.23 	356.99 and any other plan specified in that section, section 356.99 applies.

69.24 	Sec. 20. Minnesota Statutes 2016, section 353.27, subdivision 12, is amended to read:
69.25 		Subd. 12.Omitted salary deductions; obligations. (a) In the case of omission of 
69.26 	required deductions for the general employees retirement plan, the public employees police 
69.27 	and fire retirement plan, or the local government correctional employees retirement plan 
69.28 	from the salary of an employee, the department head or designee shall immediately, upon 
69.29 	discovery, report the employee for membership and deduct the employee deductions under 
69.30 	subdivision 4 during the current pay period or during the pay period immediately following 
69.31 	the discovery of the omission. Payment for the omitted obligations may only be made in 
69.32 	accordance with reporting procedures and methods established by the executive director.
69.33 	(b) When the entire omission period of an employee does not exceed 60 days, the 
69.34 	governmental subdivision may report and submit payment of the omitted employee 
70.1 	deductions and the omitted employer contributions through the reporting processes under 
70.2 	subdivision 4.
70.3 	(c) When the omission period of an employee exceeds 60 days, the governmental 
70.4 	subdivision shall furnish to the association sufficient data and documentation upon which 
70.5 	the obligation for omitted employee and employer contributions can be calculated. The 
70.6 	omitted employee deductions must be deducted from the employee's subsequent salary 
70.7 	payment or payments and remitted to the association for deposit in the applicable retirement 
70.8 	fund. The employee shall pay omitted employee deductions due for the 60 days prior to the 
70.9 	end of the last pay period in the omission period during which salary was earned. The 
70.10 	employer shall pay any remaining omitted employee deductions and any omitted employer 
70.11 	contributions, plus cumulative interest at the annual rate of 8.5 percent until June 30, 2015, 
70.12 	and eight percent thereafter compounded annually, from the date or dates each omitted 
70.13 	employee contribution was first payable.
70.14 	(d) An employer shall not hold an employee liable for omitted employee deductions 
70.15 	beyond the pay period dates under paragraph (c), nor attempt to recover from the employee 
70.16 	those employee deductions paid by the employer on behalf of the employee. Omitted 
70.17 	deductions due under paragraph (c) which are not paid by the employee constitute a liability 
70.18 	of the employer that failed to deduct the omitted deductions from the employee's salary. 
70.19 	The employer shall make payment with interest at the annual rate of 8.5 percent until June 
70.20 	30, 2015, and eight percent thereafterapplicable rate or rates specified in section 356.59, 
70.21 	subdivision 3, compounded annually. Omitted employee deductions are no longer due if an 
70.22 	employee terminates public service before making payment of omitted employee deductions 
70.23 	to the association, but the employer remains liable to pay omitted employer contributions 
70.24 	plus interest at the annual rate of 8.5 percent until June 30, 2015, and eight percent thereafter
70.25 	applicable rate or rates specified in section 356.59, subdivision 3, compounded annually,
70.26 	from the date the contributions were first payable.
70.27 	(e) The association may not commence action for the recovery of omitted employee 
70.28 	deductions and employer contributions after the expiration of three calendar years after the 
70.29 	calendar year in which the contributions and deductions were omitted. Except as provided 
70.30 	under paragraph (b), no payment may be made or accepted unless the association has already 
70.31 	commenced action for recovery of omitted deductions. An action for recovery commences 
70.32 	on the date of the mailing of any written correspondence from the association requesting 
70.33 	information from the governmental subdivision upon which to determine whether or not 
70.34 	omitted deductions occurred.

71.1 	Sec. 21. Minnesota Statutes 2016, section 353.27, subdivision 12a, is amended to read:
71.2 		Subd. 12a.Terminated employees: omitted deductions. A terminated employee who 
71.3 	was a member of the general employees retirement plan of the Public Employees Retirement 
71.4 	Association, the public employees police and fire retirement plan, or the local government 
71.5 	correctional employees retirement plan and who has a period of employment in which 
71.6 	previously omitted employer contributions were made under subdivision 12 but for whom 
71.7 	no, or only partial, omitted employee contributions have been made, or a member who had 
71.8 	prior coverage in the association for which previously omitted employer contributions were 
71.9 	made under subdivision 12 but who terminated service before required omitted employee 
71.10 	deductions could be withheld from salary, may pay the omitted employee deductions for 
71.11 	the period on which omitted employer contributions were previously paid plus interest at 
71.12 	the annual rate of 8.5 percent until June 30, 2015, and eight percent thereafterapplicable 
71.13 	rate or rates specified in section 356.59, subdivision 3, compounded annually. A terminated 
71.14 	employee may pay the omitted employee deductions plus interest within six months of an 
71.15 	initial notification from the association of eligibility to pay those omitted deductions. If a 
71.16 	terminated employee is reemployed in a position covered under a public pension fund under 
71.17 	section 356.30, subdivision 3, and elects to pay omitted employee deductions, payment 
71.18 	must be made no later than six months after a subsequent termination of public service.

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

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

72.3 	Sec. 24. Minnesota Statutes 2016, section 353.35, subdivision 1, is amended to read:
72.4 		Subdivision 1.Refund rights. (a) Except as provided in paragraph (b), when any former 
72.5 	member accepts a refund, all existing service credits and all rights and benefits to which 
72.6 	the person was entitled prior to the acceptance of the refund must terminate.
72.7 	(b) A refund under section 353.651, subdivision 3, paragraph (c), does not result in a 
72.8 	forfeiture of salary credit for the allowable service credit covered by the refund.
72.9 	(c) The rights and benefits of a former member must not be restored until the person 
72.10 	returns to active service and acquires at least six months of allowable service credit after 
72.11 	taking the last refund and repays the refund or refunds taken and interest received under 
72.12 	section 353.34, subdivisions 1 and 2, plus interest at the annual rate of 8.5 percent until June 
72.13 	30, 2015, and eight percent thereafterapplicable rate or rates specified in section 356.59, 
72.14 	subdivision 3, compounded annually. If the person elects to restore service credit in a 
72.15 	particular fund from which the person has taken more than one refund, the person must 
72.16 	repay all refunds to that fund. All refunds must be repaid within six months of the last date 
72.17 	of termination of public service.

72.18 	Sec. 25. Minnesota Statutes 2016, section 354.50, subdivision 2, is amended to read:
72.19 		Subd. 2.Interest charge. If a member desires to repay the refunds, payment shall include 
72.20 	interest at an annual rate of 8.5 percentthe applicable annual rate or rates specified in section 
72.21 	356.59, subdivision 4, compounded annually, from date of withdrawal to the date payment 
72.22 	is made and shall be credited to the fund.

72.23 	Sec. 26. Minnesota Statutes 2016, section 354.51, subdivision 5, is amended to read:
72.24 		Subd. 5.Payment of shortages. (a) Except as provided in paragraph (b), in the event 
72.25 	that full required member contributions are not deducted from the salary of a teacher, 
72.26 	payment of shortages in member deductions on salary earned are the sole obligation of the 
72.27 	employing unit and are payable by the employing unit upon notification by the executive 
72.28 	director of the shortage. The amount of the shortage shall be paid with interest at an annual 
72.29 	rate of 8.5 percentthe applicable annual rate or rates specified in section 356.59, subdivision 
72.30 	4, compounded annually, from the end of the fiscal year in which the shortage occurred to 
72.31 	the end of the month in which payment is made and the interest must be credited to the 
72.32 	fund. The employing unit shall also pay the employer contributions as specified in section 
73.1 	354.42, subdivisions 3 and 5 for the shortages. If the shortage payment is not paid by the 
73.2 	employing unit within 60 days of notification, and if the executive director does not use the 
73.3 	recovery procedure in section 354.512, the executive director shall certify the amount of 
73.4 	the shortage to the applicable county auditor, who shall spread a levy in the amount of the 
73.5 	shortage payment over the taxable property of the taxing district of the employing unit if 
73.6 	the employing unit is supported by property taxes. Payment may not be made for shortages 
73.7 	in member deductions on salary paid or payable under paragraph (b) or for shortages in 
73.8 	member deductions for persons employed by the Minnesota State Colleges and Universities 
73.9 	system in a faculty position or in an eligible unclassified administrative position and whose 
73.10 	employment was less than 25 percent of a full academic year, exclusive of the summer 
73.11 	session, for the applicable institution that exceeds the most recent 36 months.
73.12 	(b) For a person who is employed by the Minnesota State Colleges and Universities 
73.13 	system in a faculty position or in an eligible unclassified administrative position and whose 
73.14 	employment was less than 25 percent of a full academic year, exclusive of the summer 
73.15 	session, for the applicable institution, upon the person's election under section 354B.21 of 
73.16 	retirement coverage under this chapter, the shortage in member deductions on the salary 
73.17 	for employment by the Minnesota State Colleges and Universities system institution of less 
73.18 	than 25 percent of a full academic year, exclusive of the summer session, for the applicable 
73.19 	institution for the most recent 36 months and the associated employer contributions must 
73.20 	be paid by the Minnesota State Colleges and Universities system institution, plus annual 
73.21 	compound interest at the rate of 8.5 percentapplicable annual rate or rates specified in 
73.22 	section 356.59, subdivision 4, compounded annually, from the end of the fiscal year in 
73.23 	which the shortage occurred to the end of the month in which the Teachers Retirement 
73.24 	Association coverage election is made. An individual electing coverage under this paragraph 
73.25 	shall repay the amount of the shortage in member deductions, plus interest, through deduction 
73.26 	from salary or compensation payments within the first year of employment after the election 
73.27 	under section 354B.21, subject to the limitations in section 16D.16. The Minnesota State 
73.28 	Colleges and Universities system may use any means available to recover amounts which 
73.29 	were not recovered through deductions from salary or compensation payments. No payment 
73.30 	of the shortage in member deductions under this paragraph may be made for a period longer 
73.31 	than the most recent 36 months.

73.32 	Sec. 27. Minnesota Statutes 2016, section 354.52, subdivision 4, is amended to read:
73.33 		Subd. 4.Reporting and remittance requirements. An employer shall remit all amounts 
73.34 	due to the association and furnish a statement indicating the amount due and transmitted 
73.35 	with any other information required by the executive director. If an amount due is not 
74.1 	received by the association within 14 calendar days of the payroll warrant, the amount 
74.2 	accrues interest at an annual rate of 8.5 percentemployer shall pay interest on the amount 
74.3 	due at the applicable annual rate or rates specified in section 356.59, subdivision 4, 
74.4 	compounded annually, from the due date until the amount is received by the association. 
74.5 	All amounts due and other employer obligations not remitted within 60 days of notification 
74.6 	by the association must be certified to the commissioner of management and budget who 
74.7 	shall deduct the amount from any state aid or appropriation amount applicable to the 
74.8 	employing unit.

74.9 	Sec. 28. Minnesota Statutes 2016, section 354.53, subdivision 5, is amended to read:
74.10 		Subd. 5.Interest requirements. The employer shall pay interest on all equivalent 
74.11 	employee and employer contribution amounts payable under this section. Interest must be 
74.12 	computed at a rate of 8.5 percentat the applicable annual rate or rates specified in section 
74.13 	356.59, subdivision 4, compounded annually, from the end of each fiscal year of the leave 
74.14 	or the break in service to the end of the month in which the payment is received.

74.15 	Sec. 29. Minnesota Statutes 2016, section 354.72, subdivision 2, is amended to read:
74.16 		Subd. 2.Purchase procedure. (a) A teacher may purchase credit for allowable and 
74.17 	formula service in the plan for a period specified in subdivision 1 if the teacher makes a 
74.18 	payment as specified in paragraph (b), (c), or (d), whichever applies. The employing unit, 
74.19 	at its option, may pay the employer portion of the amount on behalf of its employees.
74.20 	(b) If payment is received by the executive director by June 30 of the fiscal year of the 
74.21 	strike period or by December 31 of the fiscal year following an authorized leave included 
74.22 	under section 354.093, 354.095, or 354.096, payment must equal the total employee and 
74.23 	employer contribution rates, including amortization contribution rates if applicable, multiplied 
74.24 	by the member's average monthly salary rate on the date the leave or strike period 
74.25 	commenced, multiplied by the months and portions of a month of the leave or strike period 
74.26 	for which the teacher seeks allowable service credit. This paragraph also applies to an 
74.27 	extended leave under section 354.094, except that payment must be received by June 30 of 
74.28 	the year of the leave, and the salary used in the computation is the salary received during 
74.29 	the year immediately preceding the initial year of the leave.
74.30 	(c) If payment is made after June 30 and before the following June 30 for a strike period, 
74.31 	or after December 31 of the fiscal year following a leave of absence under section 354.093, 
74.32 	354.095, or 354.096, and before July 1, the payment must include the amount determined 
74.33 	in paragraph (b) plus compound interest at athe applicable monthly rate of 0.71 percentor 
75.1 	rates specified in section 356.59, subdivision 4, from June 30 for a strike period, or from 
75.2 	December 31 for a leave under section 354.093, 354.095, or 354.096, until the last day of 
75.3 	the month in which payment is received. If payment is made on or after July 1 and before 
75.4 	the following July 1 for an extended leave of absence under section 354.094, the payment 
75.5 	must include the amount determined in paragraph (b) plus compound interest at a monthly 
75.6 	rate of 0.71 percent the applicable monthly rate or rates specified in section 356.59, 
75.7 	subdivision 4, from June 30 until the last day of the month in which payment is received.
75.8 	(d) If payment is received by the executive director after the applicable last permitted 
75.9 	date under paragraph (c), the payment amount is the amount determined under section 
75.10 	356.551. Notwithstanding payment deadlines specified in section 356.551, payment under 
75.11 	this section may be made anytime before the effective date of retirement.

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

75.19 	Sec. 31. Minnesota Statutes 2016, section 354A.096, is amended to read:
75.20 	354A.096 MEDICAL LEAVE.
75.21 	Any teacher in the coordinated program of the St. Paul Teachers Retirement Fund 
75.22 	Association who is on an authorized medical leave of absence and subsequently returns to 
75.23 	teaching service is entitled to receive allowable service credit, not to exceed one year, for 
75.24 	the period of leave, upon making the prescribed payment to the fund. This payment must 
75.25 	include the required employee and employer contributions at the rates specified in section 
75.26 	354A.12, subdivisions 1 and 2a, as applied to the member's average full-time monthly salary 
75.27 	rate on the date the leave of absence commenced plus annual interest at the rate of 8.5 
75.28 	percent until June 30, 2015, and eight percent thereafter per yearapplicable annual rate or 
75.29 	rates specified in section 356.59, subdivision 5, compounded annually, from the end of the 
75.30 	fiscal year during which the leave terminates to the end of the month during which payment 
75.31 	is made. The member must pay the total amount required unless the employing unit, at its 
75.32 	option, pays the employer contributions. The total amount required must be paid by the end 
75.33 	of the fiscal year following the fiscal year in which the leave of absence terminated or before 
76.1 	the member retires, whichever is earlier. Payment must be accompanied by a copy of the 
76.2 	resolution or action of the employing authority granting the leave and the employing 
76.3 	authority, upon granting the leave, must certify the leave to the association in a manner 
76.4 	specified by the executive director. A member may not receive more than one year of 
76.5 	allowable service credit during any fiscal year by making payment under this section. A 
76.6 	member may not receive disability benefits under section 354A.36 and receive allowable 
76.7 	service credit under this section for the same period of time.

76.8 	Sec. 32. Minnesota Statutes 2016, section 354A.12, subdivision 1a, is amended to read:
76.9 		Subd. 1a.Obligation for omitted salary deductions. If the full required contributions 
76.10 	are not deducted from the salary of a teacher, payment of the shortage in such deductions 
76.11 	is the sole obligation of the employing unit during the three-year period following the end 
76.12 	of the fiscal year in which the shortage occurred. The shortage is payable by the employing 
76.13 	unit upon notification of the shortage by the executive director of the applicable retirement 
76.14 	fund association. The employing unit shall also pay any employer contributions related to 
76.15 	the shortage. The amount of the shortage in employee contributions and associated employer 
76.16 	contributions is payable with interest at the preretirement interest assumption for the 
76.17 	retirement fund as specified in section 356.215, subdivision 8, stated as a monthly rate
76.18 	applicable annual rate or rates specified in section 356.59, subdivision 5, from the date due 
76.19 	until the date payment is received in the office of the association, compounded annually, 
76.20 	with a minimum interest charge of $10. If the shortage payment and interest is not paid by 
76.21 	the employing unit within 60 days of notification, the executive director shall certify the 
76.22 	amount of the shortage payment and interest to the commissioner of management and budget, 
76.23 	who shall deduct the amount from any state aid or appropriation amount applicable to the 
76.24 	employing unit.

76.25 	Sec. 33. Minnesota Statutes 2016, section 354A.12, subdivision 7, is amended to read:
76.26 		Subd. 7.Recovery of benefit overpayments. (a) If the executive director discovers, 
76.27 	within the time period specified in subdivision 8 following the payment of a refund or the 
76.28 	accrual date of any retirement annuity, survivor benefit, or disability benefit, that benefit 
76.29 	overpayment has occurred due to using invalid service or salary, or due to any erroneous 
76.30 	calculation procedure, the executive director must recalculate the annuity or benefit payable 
76.31 	and recover any overpayment. The executive director shall recover the overpayment by 
76.32 	requiring direct repayment or by suspending or reducing the payment of a retirement annuity 
76.33 	or other benefit payable under this chapter to the applicable person or the person's estate, 
76.34 	whichever applies, until all outstanding amounts have been recovered. If a benefit 
77.1 	overpayment or improper payment of benefits occurred caused by a failure of the person 
77.2 	to satisfy length of separation requirements for retirement under section 354A.011, 
77.3 	subdivision 21, the executive director shall recover the improper payments by requiring 
77.4 	direct repayment. The repayment must include interest at the rate of 0.71 percent per month
77.5 	applicable annual rate or rates specified in section 356.59, subdivision 5, from the first of 
77.6 	the month in which a monthly benefit amount was paid to the first of the month in which 
77.7 	the amount is repaid, with annual compounding.
77.8 	(b) In the event the executive director determines that an overpaid annuity or benefit 
77.9 	that is the result of invalid salary included in the average salary used to calculate the payment 
77.10 	amount must be recovered, the executive director must determine the amount of the employee 
77.11 	deductions taken in error on the invalid salary, with interest as determined under 354A.37, 
77.12 	subdivision 3, and must subtract that amount from the total annuity or benefit overpayment, 
77.13 	and the remaining balance of the overpaid annuity or benefit, if any, must be recovered.
77.14 	(c) If the invalid employee deductions plus interest exceed the amount of the overpaid 
77.15 	benefits, the balance must be refunded to the person to whom the benefit or annuity is being 
77.16 	paid.
77.17 	(d) Any invalid employer contributions reported on the invalid salary must be credited 
77.18 	against future contributions payable by the employer.
77.19 	(e) If a member or former member, who is receiving a retirement annuity or disability 
77.20 	benefit for which an overpayment is being recovered, dies before recovery of the overpayment 
77.21 	is completed and an optional annuity or refund is payable, the remaining balance of the 
77.22 	overpaid annuity or benefit must continue to be recovered from the payment to the optional 
77.23 	annuity beneficiary or refund recipient.
77.24 	(f) The board of trustees shall adopt policies directing the period of time and manner 
77.25 	for the collection of any overpaid retirement or optional annuity, and survivor or disability 
77.26 	benefit, or a refund that the executive director determines must be recovered as provided 
77.27 	under this section.

77.28 	Sec. 34. Minnesota Statutes 2016, section 354A.34, is amended to read:
77.29 	354A.34 DISPOSITION OF UNPAID PERIOD CERTAIN FOR LIFE OR 
77.30 	GUARANTEED REFUND OPTIONAL ANNUITIES.
77.31 	If a retiree from a coordinated program who has elected a period certain and for life 
77.32 	thereafter or a guaranteed refund optional annuity form dies without having a designated 
77.33 	beneficiary who has survived the retiree, any remaining unpaid guaranteed annuity payments 
78.1 	shall be computed at the rate of interest specified in section 356.215, subdivision 8, and 
78.2 	paid in one lump sum to the estate of the retiree. If a retiree from a coordinated program 
78.3 	who has elected a period certain and for life or a guaranteed refund optional annuity form 
78.4 	dies with a designated beneficiary who has survived the retiree but the designated beneficiary 
78.5 	dies without there existing another designated beneficiary, any remaining unpaid guaranteed 
78.6 	annuity payments shall be computed at the rate ofwith interest at the applicable annual rate 
78.7 	or rates specified in section 356.215, subdivision 8 356.59, subdivision 5, and paid in one 
78.8 	lump sum to the estate of the designated beneficiary.

78.9 	Sec. 35. Minnesota Statutes 2016, section 356.195, subdivision 2, is amended to read:
78.10 		Subd. 2.Purchase procedure for strike periods. (a) An employee covered by a plan 
78.11 	specified in subdivision 1 may purchase allowable service credit in the applicable plan for 
78.12 	any period of time during which the employee was on a public employee strike without 
78.13 	pay, not to exceed a period of one year, if the employee makes a payment in lieu of salary 
78.14 	deductions as specified in paragraph (b) or (c), whichever applies. The employing unit, at 
78.15 	its option, may pay the employer portion of the amount specified in paragraph (b) on behalf 
78.16 	of its employees.
78.17 	(b) If payment is received by the applicable pension plan executive director within one 
78.18 	year from the end of the strike, the payment amount is equal to the applicable employee 
78.19 	and employer contribution rates specified in law for the applicable plan during the strike 
78.20 	period, applied to the employee's rate of salary in effect at the conclusion of the strike for 
78.21 	the period of the strike without pay, plus compound interest at the monthly rate of 0.71 
78.22 	percent for any period for the Teachers Retirement Association and at the monthly rate of 
78.23 	0.71 percent until June 30, 2015, and 0.667 percent thereafter for any other retirement plan 
78.24 	listed in section 356.30, subdivision 3 applicable monthly rate or rates specified in section 
78.25 	356.59, subdivision 2, 3, 4, or 5, whichever applies, from the last day of the strike period 
78.26 	until the date payment is received.
78.27 	(c) If payment is received by the applicable pension fund director after one year and 
78.28 	before five years from the end of the strike, the payment amount is the amount determined 
78.29 	under section 356.551.
78.30 	(d) Payments may not be made more than five years after the end of the strike.

78.31 	Sec. 36. Minnesota Statutes 2016, section 356.44, is amended to read:
78.32 	356.44 PARTIAL PAYMENT OF PENSION PLAN REFUND.
79.1 	(a) Notwithstanding any provision of law to the contrary, a member of a pension plan 
79.2 	listed in section 356.30, subdivision 3, with at least two years of forfeited service taken 
79.3 	from a single pension plan, may repay a portion of all refunds. A partial refund repayment 
79.4 	must comply with this section.
79.5 	(b) The minimum portion of a refund repayment is one-third of the total service credit 
79.6 	period of all refunds taken from a single plan.
79.7 	(c) The cost of the partial refund repayment is the product of the cost of the total 
79.8 	repayment multiplied by the ratio of the restored service credit to the total forfeited service 
79.9 	credit. The total repayment amount includes interest at the annual rate of 8.5 percent for 
79.10 	any period for the Teachers Retirement Association and is 8.5 percent until June 30, 2015, 
79.11 	and eight percent thereafter for any other retirement plan listed in section 356.30, subdivision 
79.12 	3 applicable annual rate or rates specified in section 356.59, subdivision 2, 3, 4, or 5, 
79.13 	whichever applies, compounded annually, from the refund date to the date repayment is 
79.14 	received.
79.15 	(d) The restored service credit must be allocated based on the relationship the restored 
79.16 	service bears to the total service credit period for all refunds taken from a single pension 
79.17 	plan.
79.18 	(e) This section does not authorize a public pension plan member to repay a refund if 
79.19 	the law governing the plan does not authorize the repayment of a refund of member 
79.20 	contributions.

79.21 	Sec. 37. Minnesota Statutes 2016, section 356.50, subdivision 2, is amended to read:
79.22 		Subd. 2.Service credit procedure.  (a) To obtain the public pension plan allowable 
79.23 	service credit, the eligible person under subdivision 1 shall pay the required member 
79.24 	contribution amount. The required member contribution amount is the member contribution 
79.25 	rate or rates in effect for the pension plan during the period of service covered by the back 
79.26 	pay award, applied to the unpaid gross salary amounts of the back pay award including 
79.27 	unemployment insurance, workers' compensation, or wages from other sources which 
79.28 	reduced the back award. No contributions may be made under this clause for compensation 
79.29 	covered by a public pension plan listed in section 356.30, subdivision 3, for employment 
79.30 	during the removal period. The person shall pay the required member contribution amount 
79.31 	within 60 days of the date of receipt of the back pay award or within 60 days of a billing 
79.32 	from the retirement fund, whichever is later.
80.1 	(b) The public employer who wrongfully discharged the public employee must pay an 
80.2 	employer contribution on the back pay award. The employer contribution must be based 
80.3 	on the employer contribution rate or rates in effect for the pension plan during the period 
80.4 	of service covered by the back pay award, applied to the salary amount on which the member 
80.5 	contribution amount was determined under paragraph (a). Interest on both the required 
80.6 	member and employer contribution amount must be paid by the employer at the annual 
80.7 	compound rate of 8.5 percent for any period for the Teachers Retirement Association and 
80.8 	8.5 percent until June 30, 2015, and eight percent thereafter, for any other retirement plan 
80.9 	listed in section 356.30, subdivision 3, per year, expressed monthly The employer must pay 
80.10 	compound interest on both the required member and employer contribution amounts at the 
80.11 	applicable monthly rate or rates specified in section 356.59, subdivision 2, 3, 4, or 5, 
80.12 	whichever applies, between the date the contribution amount would have been paid to the 
80.13 	date of actual payment. The employer payment must be made within 30 days of the payment 
80.14 	under paragraph (a).

80.15 	Sec. 38. Minnesota Statutes 2016, section 356.551, subdivision 2, is amended to read:
80.16 		Subd. 2.Determination. (a) Unless the minimum purchase amount set forth in paragraph 
80.17 	(c) applies, the prior service credit purchase amount is an amount equal to the actuarial 
80.18 	present value, on the date of payment, as calculated by the chief administrative officer of 
80.19 	the pension plan and reviewed by the actuary retained under section 356.214, of the amount 
80.20 	of the additional retirement annuity obtained by the acquisition of the additional service 
80.21 	credit in this section.
80.22 	(b) Calculation of this amount must be made using the preretirement interest rate 
80.23 	applicable to the public pension plan specified in section 356.215, subdivision 8, and the 
80.24 	mortality table adopted for the public pension plan. The calculation must assume continuous 
80.25 	future service in the public pension plan until, and retirement at, the age at which the 
80.26 	minimum requirements of the fund for normal retirement or retirement with an annuity 
80.27 	unreduced for retirement at an early age, including section 356.30, are met with the additional 
80.28 	service credit purchased. The calculation must also assume a full-time equivalent salary, or 
80.29 	actual salary, whichever is greater, and a future salary history that includes annual salary 
80.30 	increases at the applicable salary increase rate for the plan specified in section 356.215, 
80.31 	subdivision 4d 8.
80.32 	(c) The prior service credit purchase amount may not be less than the amount determined 
80.33 	by applying, for each year or fraction of a year being purchased, the sum of the employee 
80.34 	contribution rate, the employer contribution rate, and the additional employer contribution 
81.1 	rate, if any, applicable during that period, to the person's annual salary during that period, 
81.2 	or fractional portion of a year's salary, if applicable, plus interest at the annual rate of 8.5 
81.3 	percent until June 30, 2015, and eight percent thereafterapplicable annual rate or rates 
81.4 	specified in section 356.59, subdivision 2, 3, 4, or 5, whichever applies, compounded 
81.5 	annually, from the end of the year in which contributions would otherwise have been made 
81.6 	to the date on which the payment is received.
81.7 	(d) Unless otherwise provided by statutes governing a specific plan, payment must be 
81.8 	made in one lump sum within one year of the prior service credit authorization or prior to 
81.9 	the member's effective date of retirement, whichever is earlier. Payment of the amount 
81.10 	calculated under this section must be made by the applicable eligible person.
81.11 	(e) However, the current employer or the prior employer may, at its discretion, pay all 
81.12 	or any portion of the payment amount that exceeds an amount equal to the employee 
81.13 	contribution rates in effect during the period or periods of prior service applied to the actual 
81.14 	salary rates in effect during the period or periods of prior service, plus interest at the 
81.15 	applicable annual rate of 8.5 percent a year or rates specified in section 356.59, subdivision 
81.16 	2, 3, 4, or 5, whichever applies, compounded annually, from the date on which the 
81.17 	contributions would otherwise have been made to the date on which the payment is made. 
81.18 	If the employer agrees to payments under this subdivision, the purchaser must make the 
81.19 	employee payments required under this subdivision within 90 days of the prior service credit 
81.20 	authorization. If that employee payment is made, the employer payment under this 
81.21 	subdivision must be remitted to the chief administrative officer of the public pension plan 
81.22 	within 60 days of receipt by the chief administrative officer of the employee payments 
81.23 	specified under this subdivision.

81.24 	Sec. 39. [356.59] INTEREST RATES.
81.25 		Subdivision 1.Applicable interest rates. Whenever the payment of interest is required 
81.26 	with respect to any payment, including refunds, remittances, shortages, contributions, or 
81.27 	repayments, the rate of interest is the rate or rates specified in subdivisions 2 to 5 for each 
81.28 	public retirement plan.
81.29 		Subd. 2.Minnesota State Retirement System. The interest rates for all retirement plans 
81.30 	administered by the Minnesota State Retirement System are as follows:

81.31				Annual
		Monthly
	
81.32		before July 1, 2015
	8.5 percent
	0.71 percent
	
81.33		from July 1, 2015, to June 30, 2018
	8.0 percent
	0.667 percent
	
81.34		after June 30, 2018
	7.5 percent
	0.625 percent
	
82.1 		Subd. 3.Public Employees Retirement Association. The interest rates for all retirement 
82.2 	plans administered by the Public Employees Retirement Association are as follows:

82.3		before July 1, 2015
	8.5 percent
		
82.4		from July 1, 2015, to June 30, 2018
	8.0 percent
		
82.5		after June 30, 2018
	7.5 percent
		
82.6 		Subd. 4.Teachers Retirement Association. The interest rates for the retirement plan 
82.7 	administered by the Teachers Retirement Association are as follows:

82.8				Annual
		Monthly
	
82.9		before July 1, 2018
	8.5 percent
	0.71 percent
	
82.10		after June 30, 2018
	7.5 percent
	0.625 percent
	
82.11 		Subd. 5.St. Paul Teachers Retirement Fund Association. The interest rates for the 
82.12 	retirement plan administered by the St. Paul Teachers Retirement Fund Association are as 
82.13 	follows:

82.14				Annual
		Monthly
	
82.15		before July 1, 2015
	8.5 percent
	0.71 percent
	
82.16		from July 1, 2015, to June 30, 2018
	8.0 percent
	0.667 percent
	
82.17		after June 30, 2018
	7.5 percent
	0.625 percent

82.18 	Sec. 40. Minnesota Statutes 2016, section 490.121, subdivision 4, is amended to read:
82.19 		Subd. 4.Allowable service. (a) "Allowable service" means any calendar month, subject 
82.20 	to the service credit limit in subdivision 22, served as a judge at any time, during which the 
82.21 	judge received compensation for that service from the state, municipality, or county, 
82.22 	whichever applies, and for which the judge made any required member contribution. It also 
82.23 	includes any month served as a referee in probate for all referees in probate who were in 
82.24 	office before January 1, 1974.
82.25 	(b) "Allowable service" also means a period of authorized leave of absence for which 
82.26 	the judge has made a payment in lieu of contributions, not in an amount in excess of the 
82.27 	service credit limit under subdivision 22. To obtain the service credit, the judge shall pay 
82.28 	an amount equal to the normal cost of the judges retirement plan on the date of return from 
82.29 	the leave of absence, as determined in the most recent actuarial report for the plan filed with 
82.30 	the Legislative Commission on Pensions and Retirement, multiplied by the judge's average 
82.31 	monthly salary rate during the authorized leave of absence and multiplied by the number 
82.32 	of months of the authorized leave of absence, plus annual compound interest at the rate of 
82.33 	8.5 percent until June 30, 2015, and eight percent thereafterinterest at the applicable annual 
82.34 	rate or rates specified in section 356.59, subdivision 2, compounded annually, from the date 
83.1 	of the termination of the leave to the date on which payment is made. The payment must 
83.2 	be made within one year of the date on which the authorized leave of absence terminated. 
83.3 	Service credit for an authorized leave of absence is in addition to a uniformed service leave 
83.4 	under section 490.1211.
83.5 	(c) "Allowable service" does not mean service as a retired judge.

83.6 	Sec. 41. Minnesota Statutes 2016, section 490.1211, is amended to read:
83.7 	490.1211 UNIFORMED SERVICE.
83.8 	(a) A judge who is absent from employment by reason of service in the uniformed 
83.9 	services, as defined in United States Code, title 38, section 4303(13), and who returns to 
83.10 	state employment as a judge upon discharge from service in the uniformed service within 
83.11 	the time frame required in United States Code, title 38, section 4312(e), may obtain service 
83.12 	credit for the period of the uniformed service, provided that the judge did not separate from 
83.13 	uniformed service with a dishonorable or bad conduct discharge or under other than honorable 
83.14 	conditions.
83.15 	(b) The judge may obtain credit by paying into the fund equivalent member contribution 
83.16 	based on the contribution rate or rates in effect at the time that the uniformed service was 
83.17 	performed multiplied by the full and fractional years being purchased and applied to the 
83.18 	annual salary rate. The annual salary rate is the average annual salary during the purchase 
83.19 	period that the judge would have received if the judge had continued to provide employment 
83.20 	services to the state rather than to provide uniformed service, or if the determination of that 
83.21 	rate is not reasonably certain, the annual salary rate is the judge's average salary rate during 
83.22 	the 12-month period of judicial employment rendered immediately preceding the purchase 
83.23 	period.
83.24 	(c) The equivalent employer contribution and, if applicable, the equivalent employer 
83.25 	additional contribution, must be paid by the employing unit, using the employer and employer 
83.26 	additional contribution rate or rates in effect at the time that the uniformed service was 
83.27 	performed, applied to the same annual salary rate or rates used to compute the equivalent 
83.28 	member contribution.
83.29 	(d) If the member equivalent contributions provided for in this section are not paid in 
83.30 	full, the judge's allowable service credit must be prorated by multiplying the full and 
83.31 	fractional number of years of uniformed service eligible for purchase by the ratio obtained 
83.32 	by dividing the total member contributions received by the total member contributions 
83.33 	otherwise required under this section.
84.1 	(e) To receive allowable service credit under this section, the contributions specified in 
84.2 	this section and section 490.121 must be transmitted to the fund during the period which 
84.3 	begins with the date on which the individual returns to judicial employment and which has 
84.4 	a duration of three times the length of the uniformed service period, but not to exceed five 
84.5 	years. If the determined payment period is calculated to be less than one year, the 
84.6 	contributions required under this section to receive service credit may be within one year 
84.7 	from the discharge date.
84.8 	(f) The amount of allowable service credit obtainable under this section and section 
84.9 	490.121 may not exceed five years, unless a longer purchase period is required under United 
84.10 	States Code, title 38, section 4312.
84.11 	(g) The state court administrator shall pay interest on all equivalent member and employer 
84.12 	contribution amounts payable under this section. Interest must be computed at the rate of 
84.13 	8.5 percent until June 30, 2015, and eight percent thereafterat the applicable annual rate or 
84.14 	rates specified in section 356.59, subdivision 2, compounded annually, from the end of each 
84.15 	fiscal year of the leave or break in service to the end of the month in which payment is 
84.16 	received.

84.17 	Sec. 42. Minnesota Statutes 2016, section 490.124, subdivision 12, is amended to read:
84.18 		Subd. 12.Refund.  (a) A person who ceases to be a judge is entitled to a refund in an 
84.19 	amount that is equal to all of the member's employee contributions to the judges' retirement 
84.20 	fund plus interest computed under section 352.22, subdivision 2.
84.21 	(b) A refund of contributions under paragraph (a) terminates all service credits and all 
84.22 	rights and benefits of the judge and the judge's survivors under this chapter.
84.23 	(c) A person who becomes a judge again after taking a refund under paragraph (a) may 
84.24 	reinstate the previously terminated allowable service credit, rights, and benefits by repaying 
84.25 	the total amount of the previously received refund. The refund repayment must include 
84.26 	interest on the total amount previously received at the annual rate of 8.5 percent until June 
84.27 	30, 2015, and eight percent thereafter at the applicable annual rate or rates specified in 
84.28 	section 356.59, subdivision 2, compounded annually, from the date on which the refund 
84.29 	was received until the date on which the refund is repaid.

84.30 	Sec. 43. EFFECTIVE DATE.
 84.31 	Sections 1 to 42 are effective June 30, 2018.

85.1 	ARTICLE 7
85.2 	CONTRIBUTION RATES

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

85.6		from July 1, 2010, to June 30, 2014
	5
	
85.7		from July 1, 2014, and thereafter to June 30, 2018
	5.5
	
85.8		from July 1, 2018, to June 30, 2019
	5.75
	
85.9		after June 30, 2019
	6
	
85.10 	(b) These contributions must be made by deduction from salary as provided in subdivision 
85.11 	4.
85.12 	(c) Contribution increases under paragraph (a) must be paid starting the first day of the 
85.13 	first full pay period after the effective date of the increase.

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

85.17		from July 1, 2010, to June 30, 2014
	5
	
85.18		from July 1, 2014, and thereafterto June 30, 2018
	5.5
	
85.19		from July 1, 2018, to June 30, 2019
	5.875
	
85.20		after June 30, 2019
	6.25
	
85.21 	(b) Contribution increases under paragraph (a) must be paid starting the first day of the 
85.22 	first full pay period after the effective date of the increase.

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

85.26		from July 1, 2010, to June 30, 2014
	8.6
	
85.27		from July 1, 2014, and thereafterto June 30, 2018
	9.1
	
85.28		after June 30, 2018
	9.6
	
85.29 	(b) These contributions must be made by deduction from salary as provided in section 
85.30 	352.04, subdivision 4.
86.1 	(c) Contribution increases under paragraph (a) must be paid starting the first day of the 
86.2 	first full pay period after the effective date of the increase.

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

86.6		from July 1, 2010, to June 30, 2014
	12.1
	
86.7		from July 1, 2014, and thereafterto June 30, 2018
	12.85
	
86.8		after June 30, 2018
	14.4
	
86.9 	(b) Contribution increases under paragraph (a) must be paid starting the first day of the 
86.10 	first full pay period after the effective date of the increase.

86.11 	Sec. 5. Minnesota Statutes 2016, section 352.92, is amended by adding a subdivision to 
86.12 	read:
86.13 		Subd. 2a.Supplemental employer contribution. (a) Effective July 1, 2019, the employer 
86.14 	shall pay a supplemental contribution. The supplemental contribution is 1.45 percent of 
86.15 	salary for covered correctional employees from July 1, 2019, through June 30, 2020; 2.95 
86.16 	percent of salary for covered correctional employees from July 1, 2020, through June 30, 
86.17 	2021; and 4.45 percent of salary for covered correctional employees thereafter. The 
86.18 	supplemental contribution rate of 4.45 percent remains in effect until the market value of 
86.19 	the assets of the correctional state employees retirement plan of the Minnesota State 
86.20 	Retirement System equals or exceeds the actuarial accrued liability of the plan as determined 
86.21 	by the actuary retained under section 356.214. The expiration of the supplemental employer 
86.22 	contribution is effective the first day of the first full pay period of the fiscal year immediately 
86.23 	following the issuance of the actuarial valuation upon which the expiration is based.
86.24 	(b) The supplemental contribution under paragraph (a) must be paid starting the first 
86.25 	day of the first full pay period after the effective date of this subdivision.

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

86.29
86.30		(1) before the first day of the first pay period beginning 
after July 1,  2014
	12.4 percent
	
86.31
86.32		(2) on or after the first day of the first pay period 
beginning afterfrom July 1, 2014, to June 30, 2016
	13.4 percent
	
87.1
87.2		(3) after June 30, 2016 from July 1, 2016, to June 30, 
2018
	14.4 percent
	
87.3		from July 1, 2018, to June 30, 2020
	14.9
	
87.4		after June 30, 2020
	15.4
	
87.5 	(b) These contributions must be made by deduction from salary as provided in section 
87.6 	352.04, subdivision 4.
87.7 	(c) Contribution increases under paragraph (a) must be paid starting the first day of the 
87.8 	first full pay period after the effective date of the increase.

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

87.14
87.15		(1) before the first day of the first pay period beginning 
after July 1,  2014
	18.6 percent
	
87.16
87.17		(2) on or after the first day of the first pay period 
beginning afterfrom July 1, 2014, to June 30, 2016
	20.1 percent
	
87.18
87.19		(3) after June 30, 2016 from July 1, 2016, to June 30, 
2018
	21.6 percent
	
87.20		from July 1, 2018, to June 30, 2019
	22.35
	
87.21		after June 30, 2019
	23.1
	
87.22 	(b) Department contributions must be paid out of money appropriated to departments 
87.23 	for this purpose.
87.24 	(c) Contribution increases under paragraph (a) must be paid starting the first day of the 
87.25 	first full pay period after the effective date of the increase.
87.26 	(d) Effective July 1, 2018, department heads shall pay a supplemental employer 
87.27 	contribution. The supplemental contribution is 1.75 percent of the salary upon which 
87.28 	deductions are made from July 1, 2018, through June 30, 2019; three percent of the salary 
87.29 	upon which deductions are made from July 1, 2019, through June 30, 2020; five percent of 
87.30 	the salary which deductions are made from July 1, 2020, through June 30, 2021; and seven 
87.31 	percent of the salary upon which deductions are made thereafter. The supplemental 
87.32 	contribution must be paid starting the first day of the first full pay period after the effective 
87.33 	date of this subdivision. The supplemental contribution rate of seven percent remains in 
87.34 	effect until the market value of the assets of the State Patrol retirement plan of the Minnesota 
87.35 	State Retirement System equals or exceeds the actuarial accrued liability of the plan as 
88.1 	determined by the actuary retained under section 356.214. The expiration of the supplemental 
88.2 	employer contribution is effective the first day of the first full pay period of the fiscal year 
88.3 	immediately following the issuance of the actuarial valuation upon which the expiration is 
88.4 	based.

88.5 	Sec. 8. Minnesota Statutes 2016, section 352D.04, subdivision 2, is amended to read:
88.6 		Subd. 2.Contribution rates. (a) The money used to purchase shares under this section 
88.7 	is the employee and employer contributions provided in this subdivision.
88.8 	(b) The employee contribution is an amount equal to the percent of salary specified in 
88.9 	section 352.04, subdivision 2, or 352.045, subdivision 3a.
88.10 	(c) The employer contribution is an amount equal to six percentthe following percentage 
88.11 	of salary.:

88.12		from July 1, 2018, through June 30, 2019
	6 percent
	
88.13		after June 30, 2019
	6.25 percent
	
88.14 	(d) For members of the legislature, the contributions under this subdivision also must 
88.15 	be made on per diem payments received during a regular or special legislative session, but 
88.16 	may not be made on per diem payments received outside of a regular or special legislative 
88.17 	session, on the additional compensation attributable to a leadership position under section 
88.18 	3.099, subdivision 3, living expense payments under section 3.101, or special session living 
88.19 	expense payments under section 3.103.
88.20 	(e) For a judge who is a member of the unclassified plan under section 352D.02, 
88.21 	subdivision 1, paragraph (c), clause (16), the employee contribution rate is eight percent of 
88.22 	salary, and there is no employer contribution.
88.23 	(f) These contributions must be made in the manner provided in section 352.04, 
88.24 	subdivisions 4, 5, and 6.

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

89.1		before January 1, 2019
	10.8 percent
	
89.2		from January 1, 2019, through December 31, 2019
	11.3 percent
	
89.3		from January 1, 2020, and thereafter
	11.8 percent
	
89.4 	(b) For members who were active members of the former Minneapolis Firefighters Relief 
89.5 	Association on December 29, 2011, the employee contribution is an amount equal to eight 
89.6 	percent of the monthly unit value under section 353.01, subdivision 10a, multiplied by 80 
89.7 	and expressed as a biweekly amount for each member. The employee contribution made 
89.8 	by a member with at least 25 years of service credit as an active member of the former 
89.9 	Minneapolis Firefighters Relief Association must be deposited in the postretirement health 
89.10 	care savings account established under section 352.98.
89.11 	(c) For members who were active members of the former Minneapolis Police Relief 
89.12 	Association on December 29, 2011, the employee contribution is an amount equal to eight 
89.13 	percent of the monthly unit value under section 353.01, subdivision 10b, multiplied by 80 
89.14 	and expressed as a biweekly amount for each member. The employee contribution made 
89.15 	by a member with at least 25 years of service credit as an active member of the former 
89.16 	Minneapolis Police Relief Association must be deposited in the postretirement health care 
89.17 	savings account established under section 352.98.
89.18 	(d) Contributions under this section must be made by deduction from salary in the manner 
89.19 	provided in subdivision 4. Where any portion of a member's salary is paid from other than 
89.20 	public funds, the member's employee contribution is based on the total salary received from 
89.21 	all sources.

89.22 	Sec. 10. Minnesota Statutes 2016, section 353.65, subdivision 3, is amended to read:
89.23 		Subd. 3.Employer contribution. (a) With respect to members other than members who 
89.24 	were active members of the former Minneapolis Firefighters Relief Association on December 
89.25 	29, 2011, or for members other than members who were active members of the former 
89.26 	Minneapolis Police Relief Association on December 29, 2011, the employer contribution 
89.27 	is an amount equal to the following percentage of the total salary of each member, as follows: 
89.28 	14.4 percent before calendar year 2014; 15.3 percent in calendar year 2014; and 16.2 percent 
89.29 	in calendar year 2015 and thereafter.

89.30		before January 1, 2019
	16.2 percent
	
89.31		from January 1, 2019, through December 31, 2019
	16.95 percent
	
89.32		from January 1, 2020, and thereafter
	17.7 percent
	
89.33 	(b) With respect to members who were active members of the former Minneapolis 
89.34 	Firefighters Relief Association on December 29, 2011, the employer contribution is an 
90.1 	amount equal to the amount of the member contributions under subdivision 2, paragraph 
90.2 	(b).
90.3 	(c) With respect to members who were active members of the former Minneapolis Police 
90.4 	Relief Association on December 29, 2011, the employer contribution is an amount equal 
90.5 	to the amount of the member contributions under subdivision 2, paragraph (c).
90.6 	(d) Contributions under this subdivision must be made from funds available to the 
90.7 	employing subdivision by the means and in the manner provided in section 353.28.

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

90.11		Period
	Basic Program
	Coordinated Program
	
90.12		from July 1, 2013, until June 30, 2014
	10.5 percent
	7 percent
	
90.13
90.14		after June 30, 2014 from July 1, 2014, 
through June 30, 2023
	11 percent
	7.5 percent
	
90.15		after June 30, 2023
	11.25 percent
	7.75 percent
	
90.16 	(b) When an employee contribution rate changes for a fiscal year, the new contribution 
90.17 	rate is effective for the entire salary paid for each employer unit with the first payroll cycle 
90.18 	reported.
90.19 	(c) After June 30, 2015, if a contribution rate revision is required under subdivisions 4a, 
90.20 	4b, and 4c, the employee contributions under paragraphs (a) and (b) must be adjusted 
90.21 	accordingly.
90.22 	(d) This contribution must be made by deduction from salary. Where any portion of a 
90.23 	member's salary is paid from other than public funds, the member's employee contribution 
90.24 	must be based on the entire salary received.

90.25 	Sec. 12. Minnesota Statutes 2016, section 354.42, subdivision 3, is amended to read:
90.26 		Subd. 3.Employer. (a) The regular employer contribution to the fund by Special School 
90.27 	District No. 1, Minneapolis, is an amount equal to the applicable following percentage of 
90.28 	salary of each coordinated member and the applicable percentage of salary of each basic 
90.29 	member specified in paragraph (c).
90.30 	The additional employer contribution to the fund by Special School District No. 1, 
90.31 	Minneapolis, is an amount equal to 3.64 percent of the salary of each teacher who is a 
90.32 	coordinated member or who is a basic member.
91.1 	(b) The regular employer contribution to the fund by Independent School District No. 
91.2 	709, Duluth, is an amount equal to the applicable percentage of salary of each old law or 
91.3 	new law coordinated member specified for the coordinated program in paragraph (c).
91.4 	(c) The employer contribution to the fund for every other employer is an amount equal 
91.5 	to the applicable following percentage of the salary of each coordinated member and the 
91.6 	applicable following percentage of the salary of each basic member:

91.7		Period
	Coordinated Member
		Basic Member
	
91.8		from July 1, 2013, until June 30, 2014
		7 percent
		11 percent
	
91.991.10
		after June 30, 2014 from July 1, 2014, 
through June 30, 2018
		7.5 percent
		11.5 percent
	
91.11		from July 1, 2018, through June 30, 2019
		7.71 percent
		11.71 percent
	
91.12		from July 1, 2019, through June 30, 2020
		7.92 percent
		11.92 percent
	
91.13		from July 1, 2020, through June 30, 2021
		8.13 percent
		12.13 percent
	
91.14		from July 1, 2021, through June 30, 2022
		8.34 percent
		12.34 percent
	
91.15		from July 1, 2022, through June 30, 2023
		8.55 percent
		12.55 percent
	
91.16		after June 30, 2023
		8.75 percent
		12.75 percent
	
91.17 	(d) When an employer contribution rate changes for a fiscal year, the new contribution 
91.18 	rate is effective for the entire salary paid for each employer unit with the first payroll cycle 
91.19 	reported.
91.20 	(e) After June 30, 2015, if a contribution rate revision is made under subdivisions 4a, 
91.21 	4b, and 4c, the employer contributions under paragraphs (a), (b), and (c) must be adjusted 
91.22 	accordingly.

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

91.27		Program
	Percentage of Total Salary
	
91.28	St. Paul Teachers Retirement Fund Association
		
91.29		basic program after June 30, 2014
	9 percent
	
91.30		basic program after June 30, 2015
	9.5 percent
	
91.31		basic program after June 30, 2016
	10 percent
	
91.32		basic program after June 30, 2022
	10.25 percent
	
91.33		coordinated program after June 30, 2014
	6.5 percent
	
91.34		coordinated program after June 30, 2015
	7 percent
	
91.35		coordinated program after June 30, 2016
	7.5 percent
	
92.1		coordinated program after June 30, 2022
	7.75 percent
	
92.2 	(b) Contributions must be made by deduction from salary and must be remitted directly 
92.3 	to the St. Paul Teachers Retirement Fund Association at least once each month.
92.4 	(c) When an employee contribution rate changes for a fiscal year, the new contribution 
92.5 	rate is effective for the entire salary paid by the employer with the first payroll cycle reported.

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

92.13		after June 30, 2014
	5.5 percent
	
92.14		after June 30, 2015
	6 percent
	
92.15		after June 30, 2016
	6.25 percent
	
92.16		after June 30, 2017
	6.5 percent
	
92.17		after June 30, 2018
	7.335 percent
	
92.18		after June 30, 2019
	8.17 percent
	
92.19		after June 30, 2020
	8.38 percent
	
92.20		after June 30, 2021
	8.59 percent
	
92.21		after June 30, 2022
	8.8 percent
	
92.22		after June 30, 2023
	9 percent
	
92.23 	(2) for anyeach basic member of the St. Paul Teachers Retirement Fund Association, 
92.24 	the employing unit shall make a regular employer contribution to the respective retirement 
92.25 	fund in an amount according to the schedule below:

92.26		after June 30, 2014
	9 percent of salary
	
92.27		after June 30, 2015
	9.5 percent of salary
	
92.28		after June 30, 2016
	9.75 percent of salary
	
92.29		after June 30, 2017
	10 percent of salary
	
92.30		after June 30, 2018
	10.835 percent of salary
	
92.31		after June 30, 2019
	11.67 percent of salary
	
92.32		after June 30, 2020
	11.88 percent of salary
	
92.33		after June 30, 2021
	12.09 percent of salary
	
92.34		after June 30, 2022
	12.3 percent of salary
	
93.1		after June 30, 2023
	12.5 percent of salary
	
93.2 	(3) for aeach basic member of the St. Paul Teachers Retirement Fund Association, the 
93.3 	employing unit shall make an additional employer contribution to the respective fund in an 
93.4 	amount equal to 3.64 percent of the salary of the basic member;
93.5 	(4) for aeach coordinated member of the St. Paul Teachers Retirement Fund Association, 
93.6 	the employing unit shall make an additional employer contribution to the respective fund 
93.7 	in an amount equal to 3.84 percent of the coordinated member's salary.
93.8 	(b) The regular and additional employer contributions must be remitted directly to the 
93.9 	St. Paul Teachers Retirement Fund Association at least once each month. Delinquent amounts 
93.10 	are payable with interest under the procedure in subdivision 1a.
93.11 	(c) Payments of regular and additional employer contributions for school district or 
93.12 	technical college employees who are paid from normal operating funds must be made from 
93.13 	the appropriate fund of the district or technical college.
93.14 	(d) When an employer contribution rate changes for a fiscal year, the new contribution 
93.15 	rate is effective for the entire salary paid by the employer with the first payroll cycle reported.

93.16 	Sec. 15. EFFECTIVE DATE.
 93.17 	Sections 1 to 14 are effective June 30, 2018.

93.18 	ARTICLE 8
93.19 	DIRECT STATE AID

93.20 	Section 1. Minnesota Statutes 2016, section 353.65, is amended by adding a subdivision 
93.21 	to read:
93.22 		Subd. 3b.Direct state aid. (a) The state shall pay $4,500,000 on October 1, 2018, and 
93.23 	October 1, 2019, to the public employees police and fire retirement plan. By October 1 of 
93.24 	each year after 2019, the state shall pay $9,000,000 to the public employees police and fire 
93.25 	retirement plan. The commissioner of management and budget shall pay the aid specified 
93.26 	in this subdivision. The amount required is annually appropriated from the general fund to 
93.27 	the commissioner of management and budget.
93.28 	(b) The aid under paragraph (a) continues until the earlier of:
93.29 	(1) the first day of the fiscal year following the fiscal year in which the actuarial value 
93.30 	of assets of the fund equals or exceeds 100 percent of the actuarial accrued liabilities as 
94.1 	reported by the actuary retained under section 356.214 in the annual actuarial valuation 
94.2 	prepared under section 356.215; or
94.3 	(2) July 1, 2048.

94.4 	Sec. 2. Minnesota Statutes 2016, section 354.435, subdivision 4, is amended to read:
94.5 		Subd. 4.Expiration. ThisThe aid amounts specified in this section expires effective
94.6 	shall continue until the earlier of:
94.7 	(1) the first day of the fiscal year next following the fiscal year in which the Teachers 
94.8 	Retirement Association has no unfundedactuarial value of assets of the fund equals or 
94.9 	exceeds 100 percent of the actuarial accrued liabilityliabilities as determined by thereported 
94.10 	by the actuary retained under section 356.214 in the annual actuarial valuation prepared 
94.11 	under section 356.215by the approved actuary retained under section 356.214.; or
94.12 	(2) July 1, 2048.

94.13 	Sec. 3. Minnesota Statutes 2016, section 354.436, subdivision 3, is amended to read:
94.14 		Subd. 3.Aid expiration. The aid amounts specified in this section terminate and this 
94.15 	section expires on the October 1 next following the later of the following dates: (1) when 
94.16 	the current assets of the Teachers Retirement Association fund equal or exceedcontinue 
94.17 	until the earlier of:
94.18 	(1) the first day of the fiscal year following the fiscal year in which the actuarial value 
94.19 	of assets of the fund equals or exceeds 100 percent of the actuarial accrued liabilities of the 
94.20 	fund as determined in the most recent actuarial valuation report for the Teachers Retirement 
94.21 	Association fundreported by the actuary retained under section 356.214 in the annual 
94.22 	actuarial valuation prepared under section 356.215; or
94.23 	(2) when the member and employer contribution rates are first determined to be eligible 
94.24 	for a reduction under section 354.42, subdivisions 4a, 4b, 4c, and 4d July 1, 2048.

94.25 	Sec. 4. Minnesota Statutes 2016, section 354A.12, subdivision 3a, is amended to read:
94.26 		Subd. 3a. Direct state aid to first class city teachers retirement fund associations.
 94.27 	(a) The state shall pay $2,827,000 to the St. Paul Teachers Retirement Fund Association.
94.28 	(b) In addition to other amounts specified in this subdivision, the state shall pay 
94.29 	$7,000,000 as state aid to the St. Paul Teachers Retirement Fund Association.
95.1 	(c) In addition to the amounts specified in paragraphs (a) and (b), the state shall pay 
95.2 	$5,000,000 as state aid to the St. Paul Teachers Retirement Fund Association.
95.3 	(c)(d) The aid under this subdivision is payable October 1 annually. The commissioner 
95.4 	of management and budget shall pay the aid specified in this subdivision. The amount 
95.5 	required is appropriated annually from the general fund to the commissioner of management 
95.6 	and budget.

95.7 	Sec. 5. Minnesota Statutes 2016, section 354A.12, subdivision 3c, is amended to read:
95.8 		Subd. 3c.Termination of supplemental contributions and direct matching and state 
95.9 	aid. (a) The supplemental contributions payable to the St. Paul Teachers Retirement Fund 
95.10 	Association by Independent School District No. 625 under section 423A.02, subdivision 3, 
95.11 	and all forms ofthe aid under subdivision 3a to the St. Paul Teachers Retirement Fund 
95.12 	Association must, paragraphs (a) and (b), continue until the actuarialearlier of:
95.13 	(1) the first day of the fiscal year following the year in which the actuarial value of assets 
95.14 	of the fund equalequals or exceedexceeds 100 percent of the actuarial accrued liability of 
95.15 	the fund as determined in the most recent actuarial report for the fundreported by the actuary 
95.16 	retained under section 356.214 or until the established date for full funding under section 
95.17 	356.215, subdivision 11, whichever occurs earlier in the most recent annual actuarial 
95.18 	valuation prepared under section 356.215; or
95.19 	(2) July 1, 2048.
95.20 	(b) The aid to the Duluth Teachers Retirement Fund Association under section 423A.02, 
95.21 	subdivision 3, and all forms of state aid under subdivision 3a to the Duluth Teachers 
95.22 	Retirement Fund Association must continue until the current assets of the fund equal or 
95.23 	exceed the actuarial accrued liability of the fund as determined in the most recent actuarial 
95.24 	report for the fund by the actuary retained under section 356.214 or until the established 
95.25 	date for full funding under section 356.215, subdivision 11, whichever occurs earlier.
95.26 	(b) The aid under subdivision 3a, paragraph (c), continues until the earlier of:
95.27 	(1) the first day of the fiscal year following the fiscal year in which the actuarial value 
95.28 	of assets of the fund equals or exceeds 100 percent of the actuarial accrued liabilities as 
95.29 	reported by the actuary retained under section 356.214 in the annual actuarial valuation 
95.30 	prepared under section 356.215; or
95.31 	(2) July 1, 2048.

96.1 	Sec. 6. Minnesota Statutes 2016, section 423A.02, subdivision 3, is amended to read:
96.2 		Subd. 3.Reallocation of amortization state aid. (a) Seventy percent of the difference 
96.3 	between $5,720,000 and the current year amortization aid distributed under subdivision 1 
96.4 	that is not distributed for any reason to a municipality must be distributed by the 
96.5 	commissioner of revenue according to this paragraph. The commissioner shall distribute 
96.6 	60 percent of the amounts derived under this paragraph to the Teachers Retirement 
96.7 	Association, and 40 percent to the St. Paul Teachers Retirement Fund Association to fund 
96.8 	the unfunded actuarial accrued liabilities of the respective funds. These payments must be 
96.9 	made on July 15 each fiscal year. If the St. Paul Teachers Retirement Fund Association or 
96.10 	the Duluth Teachers Retirement Fund Association becomes fully funded, the association's 
96.11 	satisfies subdivision 5, eligibility for its portion of this aid ceases. Amounts remaining in 
96.12 	the undistributed balance account at the end of the biennium if aid eligibility ceases cancel 
96.13 	to the general fund.
96.14 	(b) In order to receive amortization aid under paragraph (a), before June 30 annually 
96.15 	Independent School District No. 625, St. Paul, must make an additional contribution of 
96.16 	$800,000 each year to the St. Paul Teachers Retirement Fund Association.
96.17 	(c) Thirty percent of the difference between $5,720,000 and the current year amortization 
96.18 	aid under subdivision 1 that is not distributed for any reason to a municipality must be 
96.19 	distributed under section 69.021, subdivision 7, paragraph (d), as additional funding to 
96.20 	support a minimum fire state aid amount for volunteer firefighter relief associations.

96.21 	Sec. 7. Minnesota Statutes 2016, section 423A.02, subdivision 5, is amended to read:
96.22 		Subd. 5.Termination of state aid programs. The amortization state aid and additional 
96.23 	amortization state aid programs terminateascontinue until the earlier of:
96.24 	(1) the December 31, next following the date of the actuarial valuation whenend of the 
96.25 	fiscal year in which the actuarial value of assets of the St. Paul Teachers Retirement Fund 
96.26 	Association equalor the Teachers Retirement Association equals or exceeds 100 percent 
96.27 	of the actuarial accrued liability of that plan or when the assets of the Duluth Teachers 
96.28 	Retirement Fund Association equal the actuarial accrued liability of that plan, whichever 
96.29 	is later. liabilities as reported by the actuary retained under section 356.214 in the annual 
96.30 	actuarial valuation report prepared under section 356.215; or
96.31 	(2) July 1, 2048.

97.1 	Sec. 8. Minnesota Statutes 2016, section 423A.022, subdivision 5, is amended to read:
97.2 		Subd. 5.Aid termination. (a) The aid under subdivision 2, paragraph (a), clauses (1) 
97.3 	and (3), ends oncontinues until the earlier of:
97.4 	(1) the December 1 next following the actuarial valuation date onend of the fiscal year 
97.5 	in which the actuarial value of assets of both the State Patrol retirement plan and the public 
97.6 	employees police and fire retirement plan on a market value basis equals or exceeds 90 
97.7 	percent of the total actuarial accrued liabilities of the retirement plan as disclosed in an
97.8 	reported by the actuary retained under section 356.214 in the annual actuarial valuation 
97.9 	prepared under section 356.215and the Standards for Actuarial Work promulgated by the 
97.10 	Legislative Commission on Pensions and Retirement, for the State Patrol retirement plan 
97.11 	or the public employees police and fire retirement plan, whichever occurs last; or
97.12 	(2) July 1, 2048.
97.13 	(b) The aid under subdivision 2, paragraph (a), clause (2), does not terminate.

97.14 	Sec. 9. Minnesota Statutes 2016, section 490.123, is amended by adding a subdivision to 
97.15 	read:
97.16 		Subd. 5.Direct state aid. (a) The state shall pay $6,000,000 annually to the judges' 
97.17 	retirement fund. The aid is payable each October 1. The commissioner of management and 
97.18 	budget shall pay the aid specified in this subdivision. The amount required is annually 
97.19 	appropriated from the general fund to the commissioner of management and budget.
97.20 	(b) The aid under paragraph (a) continues until the earlier of:
97.21 	(1) the first day of the fiscal year following the fiscal year in which the actuarial value 
97.22 	of assets of the fund equals or exceeds 100 percent of the actuarial accrued liabilities as 
97.23 	reported by the actuary retained under section 356.214 in the annual actuarial valuation 
97.24 	prepared under section 356.215; or
97.25 	(2) July 1, 2048.

97.26 	Sec. 10.  REPEALER.
 97.27 	Laws 2008, chapter 349, article 8, section 4, is repealed.

97.28 	Sec. 11. EFFECTIVE DATE.
 97.29 	Sections 1 to 10 are effective June 30, 2018.

98.1 	ARTICLE 9
98.2 	MINNESOTA STATE RETIREMENT SYSTEM
98.3 	ADMINISTRATIVE PROVISIONS

98.4 	Section 1. Minnesota Statutes 2016, section 3A.03, subdivision 2, is amended to read:
98.5 		Subd. 2.Refund.  (a) A former member who has made contributions under subdivision 
98.6 	1 and who is no longer a member of the legislature is entitled to receive, upon written 
98.7 	application to the executive director on a form prescribed by the executive director, a refund 
98.8 	from the general fund of all contributions credited to the member's account with interest 
98.9 	computed as provided in section 352.22, subdivision 2.
98.10 	(b) The refund of contributions as provided in paragraph (a) terminates all rights of a 
98.11 	former member of the legislature and the survivors of the former member under this chapter.
98.12 	(c) If the former member of the legislature again becomes a member of the legislature 
98.13 	after having taken a refund as provided in paragraph (a), the member is a member of the 
98.14 	unclassified employees retirement program of the Minnesota State Retirement System.
98.15 	(d) However, the member may reinstate the rights and credit for service previously 
98.16 	forfeited under this chapter if the member repays all refunds taken, plus interest at the rate 
98.17 	of 8.5 percent until June 30, 2015, and eight percent thereafter compounded annually from 
98.18 	the date on which the refund was taken to the date on which the refund is repaid. Repayment 
98.19 	must be made as provided in section 352.23, paragraph (d).
98.20 	(e) No person may be required to apply for or to accept a refund.

98.21 	Sec. 2. Minnesota Statutes 2016, section 3A.03, subdivision 3, is amended to read:
98.22 		Subd. 3.Legislators retirement fund. (a) The legislators retirement fund, a special 
98.23 	retirement fund, is created within the state treasury. The legislators retirement fund must 
98.24 	be credited with any investment proceeds on the assets of the retirement fund.
98.25 	(b) The payment of annuities under section 3A.115, paragraph (b), is appropriated from 
98.26 	the legislators retirement fund.
98.27 	(c) The legislators retirement fund may receive transfers of general fund proceeds.

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

99.4 	Sec. 4. Minnesota Statutes 2016, section 352.01, subdivision 2a, is amended to read:
99.5 		Subd. 2a.Included employees. (a) "State employee" includes:
99.6 	(1) employees of the Minnesota Historical Society;
99.7 	(2) employees of the State Horticultural Society;
99.8 	(3) employees of the Minnesota Crop Improvement Association;
99.9 	(4) employees of the adjutant general whose salaries are paid from federal funds and 
99.10 	who are not covered by any federal civilian employees retirement system;
99.11 	(5) employees of the Minnesota State Colleges and Universities who are employed under 
99.12 	the university or college activities program;
99.13 	(6) currently contributing employees covered by the system who are temporarily 
99.14 	employed by the legislature during a legislative session or any currently contributing 
99.15 	employee employed for any special service as defined in subdivision 2b, clause (6);
99.16 	(7) employees of the legislature who are appointed without a limit on the duration of 
99.17 	their employment;
99.18 	(8) trainees who are employed on a full-time established training program performing 
99.19 	the duties of the classified position for which they will be eligible to receive immediate 
99.20 	appointment at the completion of the training period;
99.21 	(9) employees of the Minnesota Safety Council;
99.22 	(10) any employees who are on authorized leave of absence from the Transit Operating 
99.23 	Division of the former Metropolitan Transit Commission and who are employed by the 
99.24 	labor organization which is the exclusive bargaining agent representing employees of the 
99.25 	Transit Operating Division;
99.26 	(11) employees of the Metropolitan Council, Metropolitan Parks and Open Space 
99.27 	Commission, Metropolitan Sports Facilities Commission, or Metropolitan Mosquito Control 
99.28 	Commission unless excluded under subdivision 2b or are covered by another public pension 
99.29 	fund or plan under section 473.415, subdivision 3;
99.30 	(12) judges of the Tax Court;
100.1 	(13) personnel who were employed on June 30, 1992, by the University of Minnesota 
100.2 	in the management, operation, or maintenance of its heating plant facilities, whose 
100.3 	employment transfers to an employer assuming operation of the heating plant facilities, so 
100.4 	long as the person is employed at the University of Minnesota heating plant by that employer 
100.5 	or by its successor organization;
100.6 	(14) personnel who are employed as seasonal employees in the classified or unclassified 
100.7 	service;
100.8 	(15) persons who are employed by the Department of Commerce as a peace officer in 
100.9 	the Commerce Fraud Bureau under section 45.0135 who have attained the mandatory 
100.10 	retirement age specified in section 43A.34, subdivision 4;
100.11 	(16) employees of the University of Minnesota unless excluded under subdivision 2b, 
100.12 	clause (3);
100.13 	(17) employees of the Middle Management Association whose employment began after 
100.14 	July 1, 2007, and to whom section 352.029 does not apply;
100.15 	(18) employees of the Minnesota Government Engineers Council to whom section 
100.16 	352.029 does not apply;
100.17 	(19) employees of the Minnesota Sports Facilities Authority;
100.18 	(20) employees of the Minnesota Association of Professional Employees;
100.19 	(21) employees of the Minnesota State Retirement System;
100.20 	(22) employees of the State Agricultural Society;
100.21 	(23) employees of the Gillette Children's Hospital Board who were employed in the 
100.22 	state unclassified service at the former Gillette Children's Hospital on March 28, 1974; and
100.23 	(24) if approved for coverage by the Board of Directors of Conservation Corps Minnesota, 
100.24 	employees of Conservation Corps Minnesota so employed on June 30, 2003.; and
100.25 	(25) employees of the Perpich Center for Arts Education who are covered by the general 
100.26 	state employees retirement plan of the Minnesota State Retirement System as of July 1, 
100.27 	2016.
100.28 	(b) Employees specified in paragraph (a), clause (13), are included employees under 
100.29 	paragraph (a) if employer and employee contributions are made in a timely manner in the 
100.30 	amounts required by section 352.04. Employee contributions must be deducted from salary. 
100.31 	Employer contributions are the sole obligation of the employer assuming operation of the 
101.1 	University of Minnesota heating plant facilities or any successor organizations to that 
101.2 	employer.

101.3 	Sec. 5. Minnesota Statutes 2016, section 352.03, subdivision 5, is amended to read:
101.4 		Subd. 5.Executive director;, deputy director, and assistant director. (a) The board 
101.5 	shall appoint an executive director, in this chapter called the director, of the system must 
101.6 	be appointed by the board on the basis of fitness education, experience in the retirement 
101.7 	field, and leadership ability to manage and lead system staff, and ability to assist the board 
101.8 	in setting a vision for the system. The director must have had at least five years' experience 
101.9 	on the administrative staff of a major retirement system in either an executive level 
101.10 	management position or in a position with responsibility for the governance, management, 
101.11 	or administration of a retirement plan.
101.12 	(b) The executive director, deputy director, and assistant director must be in the 
101.13 	unclassified service but appointees may be selected from civil service lists if desired. 
101.14 	Notwithstanding any law to the contrary, the board must set the salary of the executive 
101.15 	director. The salary of the executive director must not exceed the limit for a position listed 
101.16 	in section 15A.0815, subdivision 2. The salary of the deputy director and assistant director 
101.17 	must be set in accordance with section 43A.18, subdivision 3.

101.18 	Sec. 6. Minnesota Statutes 2016, section 352.03, subdivision 6, is amended to read:
101.19 		Subd. 6.Duties and powers of executive director. The management of the system is 
101.20 	vested in the director, who is the executive and administrative head of the system. The 
101.21 	director may appoint a deputy director and an assistant director with the approval of the 
101.22 	board. The director shall be advisor to the board on matters pertaining to the system and 
101.23 	shall also act as the secretary of the board. The director shall:
101.24 	(1) attend meetings of the board;
101.25 	(2) prepare and recommend to the board appropriate rules to carry out this chapter;
101.26 	(3) establish and maintain an adequate system of records and accounts following 
101.27 	recognized accounting principles and controls;
101.28 	(4) designate an assistant director with the approval of the board;
101.29 	(5)(4) appoint any employees, both permanent and temporary, that are necessary to 
101.30 	carry out the provisions of this chapter;
102.1 	(6)(5) organize the work of the system as the director deems necessary to fulfill the 
102.2 	functions of the system, and define the duties of its employees and delegate to them any 
102.3 	powers or duties, subject to the control of the director and under conditions the director may 
102.4 	prescribe. Appointments to exercise delegated power must be by written order and shall be 
102.5 	filed with the secretary of state;
102.6 	(7)(6) with the advice and consent of the board, contract for the services of an approved 
102.7 	actuary, professional management services, and any other consulting services as necessary 
102.8 	and fix the compensation for those services. The contracts are not subject to competitive 
102.9 	bidding under chapter 16C. Any approved actuary retained by the executive director shall 
102.10 	function as the actuarial advisor of the board and the executive director, and may perform 
102.11 	actuarial valuations and experience studies to supplement those performed by the actuary 
102.12 	retained under section 356.214. Any supplemental actuarial valuations or experience studies 
102.13 	shall be filed with the executive director of the Legislative Commission on Pensions and 
102.14 	Retirement. Professional management services may not be contracted for more often than 
102.15 	once in six years. Copies of professional management survey reports must be transmitted 
102.16 	to the secretary of the senate, the chief clerk of the house of representatives, and the 
102.17 	Legislative Reference Library as provided by section 3.195, and to the executive director 
102.18 	of the commission at the time as reports are furnished to the board. Only management firms 
102.19 	experienced in conducting management surveys of federal, state, or local public retirement 
102.20 	systems are qualified to contract with the director;
102.21 	(8)(7) with the advice and consent of the board provide in-service training for the 
102.22 	employees of the system;
102.23 	(9)(8) make refunds of accumulated contributions to former state employees and to the 
102.24 	designated beneficiary, surviving spouse, legal representative, or next of kin of deceased 
102.25 	state employees or deceased former state employees, as provided in this chapter;
102.26 	(10)(9) determine the amount of the annuities and disability benefits of employees 
102.27 	covered by the system and authorize payment of the annuities and benefits beginning as of 
102.28 	the dates on which the annuities and benefits begin to accrue, in accordance with the 
102.29 	provisions of this chapter;
102.30 	(11)(10) pay annuities, refunds, survivor benefits, salaries, and necessary operating 
102.31 	expenses of the system;
102.32 	(12)(11) certify funds available for investment to the State Board of Investment;
102.33 	(13)(12) with the advice and approval of the board request the State Board of Investment 
102.34 	to sell securities when the director determines that funds are needed for the system;
103.1 	(14)(13) prepare and submit to the board and the legislature an annual financial report 
103.2 	covering the operation of the system, as required by section 356.20;
103.3 	(15)(14) prepare and submit biennial and annual budgets to the board and with the 
103.4 	approval of the board submit the budgets to the Department of Management and Budget; 
103.5 	and
103.6 	(16)(15) with the approval of the board, perform other duties required to administer the 
103.7 	retirement and other provisions of this chapter and to do its business.

103.8 	Sec. 7. Minnesota Statutes 2016, section 352.113, subdivision 4, is amended to read:
103.9 		Subd. 4.Medical or psychological examinations; authorization for payment of 
103.10 	benefit. (a) Any physician, psychologist, chiropractor, or physician assistant, or nurse 
103.11 	practitioner providing any service specified in this section must be licensed.
103.12 	(b) An applicant shall provide a detailed report signed by a physician, and at least one 
103.13 	additional report signed by a physician, chiropractor, psychologist, orchiropractor, physician 
103.14 	assistant, or nurse practitioner with evidence to support an application for total and permanent 
103.15 	disability. The reports must include an expert opinion regarding whether the employee is 
103.16 	permanently and totally disabled within the meaning of section 352.01, subdivision 17, and 
103.17 	that the disability arose before the employee was placed on any paid or unpaid leave of 
103.18 	absence or terminated public service.
103.19 	(c) If there is medical evidence that supports the expectation that at some point the person 
103.20 	applying for the disability benefit will no longer be disabled, the decision granting the 
103.21 	disability benefit may provide for a termination date upon which the total and permanent 
103.22 	disability can be expected to no longer exist. When a termination date is part of the decision 
103.23 	granting benefits, prior to the benefit termination the executive director shall review any 
103.24 	evidence provided by the disabled employee to show that the disabling condition for which 
103.25 	benefits were initially granted continues. If the benefits cease, the disabled employee may 
103.26 	follow the appeal procedures described in section 356.96 or may reapply for disability 
103.27 	benefits using the process described in this subdivision.
103.28 	(d) Any claim to disability must be supported by a report from the employer indicating 
103.29 	that there is no available work that the employee can perform with the disabling condition 
103.30 	and that all reasonable accommodations have been considered. Upon request of the executive 
103.31 	director, an employer shall provide evidence of the steps the employer has taken to attempt 
103.32 	to provide reasonable accommodations and continued employment to the claimant.
104.1 	(e) The director shall also obtain written certification from the employer stating whether 
104.2 	the employment has ceased or whether the employee is on sick leave of absence because 
104.3 	of a disability that will prevent further service to the employer and that the employee is not 
104.4 	entitled to compensation from the employer.
104.5 	(f) The medical adviser shall consider the reports of the physicians, physician assistants, 
104.6 	psychologists, and chiropractorsphysician, psychologist, chiropractor, physician assistant, 
104.7 	or nurse practitioner and any other evidence supplied by the employee or other interested 
104.8 	parties. If the medical adviser finds the employee totally and permanently disabled, the 
104.9 	adviser shall make appropriate recommendation to the director in writing together with the 
104.10 	date from which the employee has been totally disabled. The director shall then determine 
104.11 	if the disability occurred within 18 months of filing the application, while still in the 
104.12 	employment of the state, and the propriety of authorizing payment of a disability benefit as 
104.13 	provided in this section and constitutes a total and permanent disability as defined in section 
104.14 	352.01, subdivision 17.
104.15 	(g) A terminated employee may apply for a disability benefit within 18 months of 
104.16 	termination as long as the disability occurred while in the employment of the state. The fact 
104.17 	that an employee is placed on leave of absence without compensation because of disability 
104.18 	does not bar that employee from receiving a disability benefit.
104.19 	(h) Upon appeal, the board of directors may extend the disability benefit application 
104.20 	deadline in paragraph (g) by an additional 18 months if the terminated employee is 
104.21 	determined by the board of directors to have a cognitive impairment that made it unlikely 
104.22 	that the terminated employee understood that there was an application deadline or that the 
104.23 	terminated employee was able to meet the application deadline.
104.24 	(h) (i) Unless the payment of a disability benefit has terminated because the employee 
104.25 	is no longer totally disabled, or because the employee has reached normal retirement age 
104.26 	as provided in this section, the disability benefit must cease with the last payment received 
104.27 	by the disabled employee or which had accrued during the lifetime of the employee unless 
104.28 	there is a spouse surviving. In that event, the surviving spouse is entitled to the disability 
104.29 	benefit for the calendar month in which the disabled employee died.

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

105.5 	Sec. 9. Minnesota Statutes 2016, section 352.23, is amended to read:
105.6 	352.23 TERMINATION OF RIGHTS; REPAYMENT OF REFUND.
105.7 	(a) When any employee accepts a refund as provided in section 352.22, all existing 
105.8 	allowable service credits and all rights and benefits to which the employee was entitled 
105.9 	before accepting the refund terminate.
105.10 	(b) Terminated service credits and rights must not again be restored until the former 
105.11 	employee acquires at least six months of allowable service credit after taking the last refund. 
105.12 	In that event, the employee may repayand repays all refunds previously taken from the 
105.13 	retirement fund with interest as provided in paragraph (d).
105.14 	(c) Repayment of refunds entitles the employee only to credit for service covered by (1) 
105.15 	salary deductions; (2) payments previously made in lieu of salary deductions as permitted 
105.16 	under law in effect when the payment in lieu of deductions was made; (3) payments made 
105.17 	to obtain credit for service as permitted by laws in effect when payment was made; and (4) 
105.18 	allowable service previously credited while receiving temporary workers' compensation as 
105.19 	provided in section 352.01, subdivision 11, paragraph (a), clause (3).
105.20 	(d) Payments under this section for repayment of refunds are to be paid with interest at 
105.21 	the rate of 8.5 percent until June 30, 2015, and eight percent thereafter compounded annually 
105.22 	from the date the refund was taken until the date the refund is repaid. TheyRepayment may 
105.23 	be paid in a lump sum or by payroll deduction in the manner provided in section 352.04. 
105.24 	Payment may be made in partial payments consistent with section 356.44 during employment 
105.25 	or in a lump sum up to six months after termination from service.

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

106.3 	Sec. 11. Minnesota Statutes 2016, section 352D.02, subdivision 1, is amended to read:
106.4 		Subdivision 1.Coverage.  (a) Employees enumerated in paragraph (c), clauses (2), (3), 
106.5 	(4), (6) to (14), and (16) to (18), if they are in the unclassified service of the state or 
106.6 	Metropolitan Council and are eligible for coverage under the general state employees 
106.7 	retirement plan under chapter 352, are participants in the unclassified program under this 
106.8 	chapter unless the employee gives notice to the executive director of the Minnesota State 
106.9 	Retirement System within one year following the commencement of employment in the 
106.10 	unclassified service that the employee desires coverage under the general state employees 
106.11 	retirement plan. For the purposes of this chapter, an employee who does not file notice with 
106.12 	the executive director is deemed to have exercised the option to participate in the unclassified 
106.13 	program.
106.14 	(b) Persons referenced in paragraph (c), clause (5), are participants in the unclassified 
106.15 	program under this chapter unless the person was eligible to elect different coverage under 
106.16 	section 3A.07 and elected retirement coverage by the applicable alternative retirement plan. 
106.17 	Persons referenced in paragraph (c), clause (15), are participants in the unclassified program 
106.18 	under this chapter for judicial employment in excess of the service credit limit in section 
106.19 	490.121, subdivision 22.
106.20 	(c) Enumerated employees and referenced persons are:
106.21 	(1) the governor, the lieutenant governor, the secretary of state, the state auditor, and 
106.22 	the attorney general;
106.23 	(2) an employee in the Office of the Governor, Lieutenant Governor, Secretary of State, 
106.24 	State Auditor, Attorney General;
106.25 	(3) an employee of the State Board of Investment;
106.26 	(4) the head of a department, division, or agency created by statute in the unclassified 
106.27 	service, an acting department head subsequently appointed to the position, or an employee 
106.28 	enumerated in section 15A.0815 or 15A.083, subdivision 4;
106.29 	(5) a member of the legislature;
106.30 	(6) an unclassified employee of the legislature or a commission or agency of the 
106.31 	legislature who is appointed without a limit on the duration of the employment or a temporary 
106.32 	legislative employee having shares in the supplemental retirement fund as a result of former 
107.1 	employment covered by this chapter, whether or not eligible for coverage under the 
107.2 	Minnesota State Retirement System;
107.3 	(7) a person who is employed in a position established under section 43A.08, subdivision 
107.4 	1, clause (3), or in a position authorized under a statute creating or establishing a department 
107.5 	or agency of the state, which is at the deputy or assistant head of department or agency or 
107.6 	director level;
107.7 	(8) the regional administrator, or executive director of the Metropolitan Council, general 
107.8 	counsel, division directors, operations managers, and other positions as designated by the 
107.9 	council, all of which may not exceed 27 positions at the council and the chair;
107.10 	(9) the commissioner, deputy commissioner, and not to exceed nine positions of the 
107.11 	Minnesota Office of Higher Education in the unclassified service, as designated by the 
107.12 	Minnesota Office of Higher Education before January 1, 1992, or subsequently redesignated 
107.13 	with the approval of the board of directors of the Minnesota State Retirement System, unless 
107.14 	the person has elected coverage by the individual retirement account plan under chapter 
107.15 	354B;
107.16 	(10) the clerk of the appellate courts appointed under article VI, section 2, of the 
107.17 	Constitution of the state of Minnesota, the state court administrator and judicial district 
107.18 	administrators;
107.19 	(11) the chief executive officers of correctional facilities operated by the Department of 
107.20 	Corrections and of hospitals and nursing homes operated by the Department of Human 
107.21 	Services;
107.22 	(12) an employee whose principal employment is at the state ceremonial house;
107.23 	(13) an employee of the Agricultural Utilization Research Institute;
107.24 	(14) an employee of the State Lottery who is covered by the managerial plan established 
107.25 	under section 43A.18, subdivision 3;
107.26 	(15) a judge who has exceeded the service credit limit in section 490.121, subdivision 
107.27 	22;
107.28 	(16) an employee of Enterprise Minnesota, Inc.;
107.29 	(17) a person employed by the Minnesota State Colleges and Universities as faculty or 
107.30 	in an eligible unclassified administrative position as defined in section 354B.20, subdivision 
107.31 	6, who was employed by the former state university or the former community college system 
107.32 	before May 1, 1995, and elected unclassified program coverage prior to May 1, 1995; and
108.1 	(18) a person employed by the Minnesota State Colleges and Universities who was 
108.2 	employed in state service before July 1, 1995, who subsequently is employed in an eligible 
108.3 	unclassified administrative position as defined in section 354B.20, subdivision 6, and who 
108.4 	elects coverage by the unclassified program.

108.5 	Sec. 12. Minnesota Statutes 2016, section 352D.02, subdivision 3, is amended to read:
108.6 		Subd. 3.Transfer to general employees retirement plan. (a) If permitted under 
108.7 	paragraph (b), an employeeA person in the unclassified program and referred to in 
108.8 	subdivision 1, paragraph (c), clauses (2) to (4), (6) to (14), and (16) to (18), who is credited 
108.9 	with shares in the unclassified program and has credit for allowable service may elect to 
108.10 	terminate participation in the unclassified program and be covered by the general state 
108.11 	employees retirement plan. (b) An employee specified in paragraph (a) is permitted to 
108.12 	terminate participation in the unclassified program and be covered byif the person files an 
108.13 	election to transfer to the general state employees retirement plan if the employee with the 
108.14 	executive director of the Minnesota State Retirement System as provided in paragraph (b) 
108.15 	and the person's current employment or appointment:
108.16 	(1) was employedbegan before July 1, 2010, and the person has at least ten years of 
108.17 	allowable service covered employment; or
108.18 	(2) was first employedbegan after June 30, 2010, and the person has no more than seven 
108.19 	years of allowable service in the unclassified program.
108.20 	The(b) An election to transfer must be in writing, on a form provided by the executive 
108.21 	director, and can be made no later than one month following the termination of covered 
108.22 	employment. delivered to the executive director:
108.23 	(1) for persons described in paragraph (a), clause (1), no later than one month following 
108.24 	the termination of covered employment; or
108.25 	(2) for persons described in paragraph (a), clause (2), by the earlier of (i) the end of the 
108.26 	month following the termination of employment in a position covered by the unclassified 
108.27 	program, and (ii) the last day of the seventh year of allowable service in the unclassified 
108.28 	program.
108.29 	For purposes of this chapter, an employee who does not file an election to transfer with 
108.30 	the executive director is deemed to have exercised the option to participate in the unclassified 
108.31 	program.
108.32 	(c) If the transfer election is made, the executive director shall redeem the employee's 
108.33 	total shares and credit to the employee's account in the general employees retirement plan 
109.1 	the amount of contributions that would have been credited had the employee been covered 
109.2 	by the general employees retirement plan during the employee's entire covered employment. 
109.3 	The balance of money redeemed and not credited to the employee's account must be 
109.4 	transferred to the general employees retirement plan, except that the executive director must 
109.5 	determine:
109.6 	(1) the employee contributions paid to the unclassified program; and
109.7 	(2) the employee contributions that would have been paid to the general employees 
109.8 	retirement plan for the comparable period, if the individual had been covered by that plan.
109.9 	If clause (1) is greater than clause (2), the difference must be refunded to the employee 
109.10 	as provided in section 352.22. If clause (2) is greater than clause (1), the difference must 
109.11 	be paid by the employee within six months of electing general employees retirement plan 
109.12 	coverage or before the effective date of the annuity, whichever is sooner.
109.13 	(d) An election under paragraph (b) to transfer coverage to the general employees 
109.14 	retirement plan is irrevocable during any period of covered employment.
109.15 	(e) A person referenced in subdivision 1, paragraph (c), clause (1), (5), or (15), who is 
109.16 	credited with employee shares in the unclassified program is not permitted to terminate 
109.17 	participation in the unclassified program and be covered by the general employees retirement 
109.18 	plan.

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

110.1 	Sec. 14. Minnesota Statutes 2016, section 490.124, subdivision 12, is amended to read:
110.2 		Subd. 12.Refund.  (a) A person who ceases to be a judge is entitled to a refund in an 
110.3 	amount that is equal to all of the member's employee contributions to the judges' retirement 
110.4 	fund plus interest computed under section 352.22, subdivision 2.
110.5 	(b) A refund of contributions under paragraph (a) terminates all service credits and all 
110.6 	rights and benefits of the judge and the judge's survivors under this chapter.
110.7 	(c) A person who becomes a judge again after taking a refund under paragraph (a) may 
110.8 	reinstate the previously terminated allowable service credit, rights, and benefits by repaying 
110.9 	the total amount of the previously received refund. The refund repayment must include 
110.10 	interest on the total amount previously received at the annual rate of 8.5 percent until June 
110.11 	30, 2015, and eight percent thereafter, compounded annually, from the date on which the 
110.12 	refund was received until the date on which the refund is repaid. Repayment must be made 
110.13 	as provided in section 352.23, paragraph (d).

110.14 	Sec. 15. EFFECTIVE DATE.
 110.15 	Sections 1 to 14 are effective June 30, 2018.

110.16 	ARTICLE 10
110.17 	PUBLIC EMPLOYEES RETIREMENT ASSOCIATION
110.18 	ADMINISTRATIVE PROVISIONS

110.19 	Section 1. Minnesota Statutes 2016, section 353.01, subdivision 2b, is amended to read:
110.20 		Subd. 2b.Excluded employees. (a) The following public employees are not eligible to 
110.21 	participate as members of the association with retirement coverage by the general employees 
110.22 	retirement plan, the local government correctional employees retirement plan under chapter 
110.23 	353E, or the public employees police and fire retirement plan:
110.24 	(1) persons whose annual salary from one governmental subdivision never exceeds an 
110.25 	amount, stipulated in writing in advance, of $5,100 if the person is not a school district 
110.26 	employee or $3,800 if the person is a school year employee. If annual compensation from 
110.27 	one governmental subdivision to an employee exceeds the stipulated amount in a calendar 
110.28 	year or a school year, whichever applies, after being stipulated in advance not to exceed the 
110.29 	applicable amount, the stipulation is no longer valid and contributions must be made on 
110.30 	behalf of the employee under section 353.27, subdivision 12, from the first month in which 
110.31 	the employee received salary exceeding $425 in a month;
111.1 	(2) public officers who are elected to a governing body, city mayors, or persons who 
111.2 	are appointed to fill a vacancy in an electiveelected office of a governing body, whose term 
111.3 	of office commences on or after July 1, 2002, for the service to be rendered in that elective
111.4 	elected position;
111.5 	(3) election judges and persons employed solely to administer elections;
111.6 	(4) patient and inmate personnel who perform services for a governmental subdivision;
111.7 	(5) except as otherwise specified in subdivision 12a, employees who are employed solely 
111.8 	in a temporary position as defined under subdivision 12a, and employees who resign from 
111.9 	a nontemporary position and accept a temporary position within 30 days of that resignation 
111.10 	in the same governmental subdivision;
111.11 	(6) employees who are employed by reason of work emergency caused by fire, flood, 
111.12 	storm, or similar disaster, but if the person becomes a probationary or provisional employee 
111.13 	within the same pay period, other than on a temporary basis, the person is a "public 
111.14 	employee" retroactively to the beginning of the pay period;
111.15 	(7) employees who by virtue of their employment in one governmental subdivision are 
111.16 	required by law to be a member of and to contribute to any of the plans or funds administered 
111.17 	by the Minnesota State Retirement System, the Teachers Retirement Association, or the St. 
111.18 	Paul Teachers Retirement Fund Association, but this exclusion must not be construed to 
111.19 	prevent a person from being a member of and contributing to the Public Employees 
111.20 	Retirement Association and also belonging to and contributing to another public pension 
111.21 	plan or fund for other service occurring during the same period of time, and a person who 
111.22 	meets the definition of "public employee" in subdivision 2 by virtue of other service occurring 
111.23 	during the same period of time becomes a member of the association unless contributions 
111.24 	are made to another public retirement plan on the salary based on the other service or to the 
111.25 	Teachers Retirement Association by a teacher as defined in section 354.05, subdivision 2;
111.26 	(8) persons who are members of a religious order and are excluded from coverage under 
111.27 	the federal Old Age, Survivors, Disability, and Health Insurance Program for the performance 
111.28 	of service as specified in United States Code, title 42, section 410(a)(8)(A), as amended, if 
111.29 	no irrevocable election of coverage has been made under section 3121(r) of the Internal 
111.30 	Revenue Code of 1954, as amended;
111.31 	(9) persons who are:
111.32 	(i) employed by a governmental subdivision who have not reached the age of 23 and 
111.33 	who are enrolled on a full-time basis to attend or are attending classes on a full-time basis 
112.1 	at an accredited school, college, or university in an undergraduate, graduate, or 
112.2 	professional-technical program, or at a public or charter high school;
112.3 	(ii) employed as resident physicians, medical interns, pharmacist residents, or pharmacist 
112.4 	interns and are serving in a degree or residency program in a public hospital or in a public 
112.5 	clinic; or
112.6 	(iii) students who are serving for a period not to exceed five years in an internship or a 
112.7 	residency program that is sponsored by a governmental subdivision, including an accredited 
112.8 	educational institution;
112.9 	(10) persons who hold a part-time adult supplementary technical college license who 
112.10 	render part-time teaching service in a technical college;
112.11 	(11) except for employees offor the first three years of employment, foreign citizens 
112.12 	who are employed by a governmental subdivision, other than Hennepin County or employees 
112.13 	of Hennepin Healthcare System, Inc., foreign citizens who are employed by a governmental 
112.14 	subdivision under aone or more work permitpermits or under an H-1b visa initially issued 
112.15 	or extended for a combined period of less than three years of employment but upon extension 
112.16 	of the employment of the visa beyond the three-year period, the foreign citizen must be 
112.17 	reported for membership beginning on the first of the month following the extension if the 
112.18 	monthly earnings threshold as provided under subdivision 2a, paragraph (a), is met work 
112.19 	visas;
112.20 	(12) public hospital employees who elected not to participate as members of the 
112.21 	association before 1972 and who did not elect to participate from July 1, 1988, to October 
112.22 	1, 1988;
112.23 	(13) except as provided in section 353.86, volunteer ambulance service personnel, as 
112.24 	defined in subdivision 35, but persons who serve as volunteer ambulance service personnel 
112.25 	may still qualify as public employees under subdivision 2 and may be members of the Public 
112.26 	Employees Retirement Association and participants in the general employees retirement 
112.27 	plan or the public employees police and fire plan, whichever applies, on the basis of 
112.28 	compensation received from public employment service other than service as volunteer 
112.29 	ambulance service personnel;
112.30 	(14) except as provided in section 353.87, volunteer firefighters, as defined in subdivision 
112.31 	36, engaging in activities undertaken as part of volunteer firefighter duties, but a person 
112.32 	who is a volunteer firefighter may still qualify as a public employee under subdivision 2 
112.33 	and may be a member of the Public Employees Retirement Association and a participant 
112.34 	in the general employees retirement plan or the public employees police and fire plan, 
113.1 	whichever applies, on the basis of compensation received from public employment activities 
113.2 	other than those as a volunteer firefighter;
113.3 	(15) pipefitters and associated trades personnel employed by Independent School District 
113.4 	No. 625, St. Paul, with coverage under a collective bargaining agreement by the pipefitters 
113.5 	local 455 pension plan who were either first employed after May 1, 1997, or, if first employed 
113.6 	before May 2, 1997, elected to be excluded under Laws 1997, chapter 241, article 2, section 
113.7 	12;
113.8 	(16) electrical workers, plumbers, carpenters, and associated trades personnel who are 
113.9 	employed by Independent School District No. 625, St. Paul, or the city of St. Paul, who 
113.10 	have retirement coverage under a collective bargaining agreement by the Electrical Workers 
113.11 	Local 110 pension plan, the United Association Plumbers Local 34 pension plan, or the 
113.12 	pension plan applicable to Carpenters Local 322 who were either first employed after May 
113.13 	1, 2000, or, if first employed before May 2, 2000, elected to be excluded under Laws 2000, 
113.14 	chapter 461, article 7, section 5;
113.15 	(17) bricklayers, allied craftworkers, cement masons, glaziers, glassworkers, painters, 
113.16 	allied tradesworkers, and plasterers who are employed by the city of St. Paul or Independent 
113.17 	School District No. 625, St. Paul, with coverage under a collective bargaining agreement 
113.18 	by the Bricklayers and Allied Craftworkers Local 1 pension plan, the Cement Masons Local 
113.19 	633 pension plan, the Glaziers and Glassworkers Local L-1324 pension plan, the Painters 
113.20 	and Allied Trades Local 61 pension plan, or the Twin Cities Plasterers Local 265 pension 
113.21 	plan who were either first employed after May 1, 2001, or if first employed before May 2, 
113.22 	2001, elected to be excluded under Laws 2001, First Special Session chapter 10, article 10, 
113.23 	section 6;
113.24 	(18) plumbers who are employed by the Metropolitan Airports Commission, with 
113.25 	coverage under a collective bargaining agreement by the Plumbers Local 34 pension plan, 
113.26 	who either were first employed after May 1, 2001, or if first employed before May 2, 2001, 
113.27 	elected to be excluded under Laws 2001, First Special Session chapter 10, article 10, section 
113.28 	6;
113.29 	(19) employees who are hired after June 30, 2002, solely to fill seasonal positions under 
113.30 	subdivision 12b which are limited in duration by the employer to 185 consecutive calendar 
113.31 	days or less in each year of employment with the governmental subdivision;
113.32 	(20) persons who are provided supported employment or work-study positions by a 
113.33 	governmental subdivision and who participate in an employment or industries program 
113.34 	maintained for the benefit of these persons where the governmental subdivision limits the 
114.1 	position's duration to up to five years, including persons participating in a federal or state 
114.2 	subsidized on-the-job training, work experience, senior citizen, youth, or unemployment 
114.3 	relief program where the training or work experience is not provided as a part of, or for, 
114.4 	future permanent public employment;
114.5 	(21) independent contractors and the employees of independent contractors;
114.6 	(22) reemployed annuitants of the association during the course of that reemployment;
114.7 	(23) persons appointed to serve on a board or commission of a governmental subdivision 
114.8 	or an instrumentality thereof;
114.9 	(24) persons employed as full-time fixed-route bus drivers by the St. Cloud Metropolitan 
114.10 	Transit Commission who are members of the International Brotherhood of Teamsters Local 
114.11 	638 and who are, by virtue of that employment, members of the International Brotherhood 
114.12 	of Teamsters Central States pension plan; and
114.13 	(25) electricians or pipefitters employed by the Minneapolis Park and Recreation Board, 
114.14 	with coverage under a collective bargaining agreement by the IBEW local 292, or pipefitters 
114.15 	local 539 pension plan, who were first employed before May 2, 2015, and who elected to 
114.16 	be excluded under Laws 2015, chapter 68, article 11, section 5.
114.17 	(b) Any person performing the duties of a public officer in a position defined in 
114.18 	subdivision 2a, paragraph (a), clause (3), is not an independent contractor and is not an 
114.19 	employee of an independent contractor.

114.20 	Sec. 2. Minnesota Statutes 2016, section 353.01, subdivision 10, is amended to read:
114.21 		Subd. 10.Salary. (a) Subject to the limitations of section 356.611, "salary" means:
114.22 	(1) the wages or periodic compensation payable to a public employee by the employing 
114.23 	governmental subdivision before:
114.24 	(i) employee retirement deductions that are designated as picked-up contributions under 
114.25 	section 356.62;
114.26 	(ii) any employee-elected deductions for deferred compensation, supplemental retirement 
114.27 	plans, or other voluntary salary reduction programs that would have otherwise been available 
114.28 	as a cash payment to the employee; and
114.29 	(iii) employee deductions for contributions to a supplemental plan or to a governmental 
114.30 	trust established under section 356.24, subdivision 1, clause (7), to save for postretirement 
114.31 	health care expenses, unless otherwise excluded under paragraph (b);
115.1 	(2) for a public employee who is covered by a supplemental retirement plan under section 
115.2 	356.24, subdivision 1, clause (8), (9), (10), or (12), the employer contributions to the 
115.3 	applicable supplemental retirement plan when an agreement between the parties establishes 
115.4 	that the contributions will either result in a mandatory reduction of employees' wages through 
115.5 	payroll withholdings, or be made in lieu of an amount that would otherwise be paid as 
115.6 	wages;
115.7 	(3) a payment from a public employer through a grievance proceeding, settlement, or 
115.8 	court order that is attached to a specific earnings period in which the employee's regular 
115.9 	salary was not earned or paid to the member due to a suspension or a period of involuntary 
115.10 	termination that is not a wrongful discharge under section 356.50; provided the amount is 
115.11 	not less than the equivalent of the average of the hourly base salary rate in effect during the 
115.12 	last six months of allowable service prior to the suspension or period of involuntary 
115.13 	termination, plus any applicable increases awarded during the period that would have been 
115.14 	paid under a collective bargaining agreement or personnel policy but for the suspension or 
115.15 	involuntary termination, multiplied by the average number of regular hours for which the 
115.16 	employee was compensated during the six months of allowable service prior to the suspension 
115.17 	or period of involuntary termination, but not to exceed the compensation that the public 
115.18 	employee would have earned if regularly employed during the applicable period;
115.19 	(4) for a member who is absent from employment due tocompensation paid during an 
115.20 	authorized leave of absence, other than an authorized medical leave of absence, as long as 
115.21 	the compensation paid during the leave if equivalent toa pay period is not less than the 
115.22 	lesser of:
115.23 	(i) the product of the average hourly base salary rate in effect during the six months of 
115.24 	allowable service, or portions thereof, prior toimmediately preceding the leave, multiplied 
115.25 	by the average number of regular hours for which the employee was compensated each pay 
115.26 	period during the six months of allowable service prior toimmediately preceding the 
115.27 	applicable leave of absence; or
115.28 	(ii) compensation equal to the value of the employee's total available accrued leave 
115.29 	hours;
115.30 	(5) for a member who is absent from employment by reason ofcompensation paid during 
115.31 	an authorized medical leave of absence, other than a workers' compensation leave, as long 
115.32 	as the compensation paid during the leave if specified in advance to be at leasta pay period 
115.33 	is not less than the lesser of:
116.1 	(i) the product of one-half of, but no more than equal to, the earnings the member 
116.2 	received, on which contributions were reported and allowable service creditedand the 
116.3 	average hourly base salary rate in effect during the six months of allowable service 
116.4 	immediately preceding the medical leave of absence; and or
116.5 	(ii) compensation equal to the value of the employee's total available accrued leave 
116.6 	hours; and
116.7 	(6) for a public employee who receives performance or merit bonus payment under a 
116.8 	written compensation plan, policy, or collective bargaining agreement in addition to regular 
116.9 	salary or in lieu of regular salary increases, the compensation paid to the employee for 
116.10 	attaining or exceeding performance goals, duties, or measures during a specified period of 
116.11 	employment.
116.12 	(b) Salary does not mean:
116.13 	(1) fees paid to district court reporters;
116.14 	(2) unused annual leave, vacation, or sick leave payments, in the form of lump-sum or 
116.15 	periodic payments;
116.16 	(3) for the donor, payment to another person of the value of hours donated under a 
116.17 	benevolent vacation, personal, or sick leave donation program;
116.18 	(4) any form of severance or retirement incentive payments;
116.19 	(5) an allowance payment or per diem payments for or reimbursement of expenses;
116.20 	(6) lump-sum settlements not attached to a specific earnings period;
116.21 	(7) workers' compensation payments or disability insurance payments, including payments 
116.22 	from employer self-insurance arrangements;
116.23 	(8) employer-paid amounts used by an employee toward the cost of insurance coverage, 
116.24 	flexible spending accounts, cafeteria plans, health care expense accounts, day care expenses, 
116.25 	or any payments in lieu of any employer-paid group insurance coverage, including the 
116.26 	difference between single and family rates that may be paid to a member with single coverage 
116.27 	and certain amounts determined by the executive director to be ineligible;
116.28 	(9) employer-paid fringe benefits, including, but not limited to:
116.29 	(i) employer-paid premiums or supplemental contributions for employees for all types 
116.30 	of insurance;
116.31 	(ii) membership dues or fees for the use of fitness or recreational facilities;
117.1 	(iii) incentive payments or cash awards relating to a wellness program;
117.2 	(iv) the value of any nonmonetary benefits;
117.3 	(v) any form of payment made in lieu of an employer-paid fringe benefit;
117.4 	(vi) an employer-paid amount made to a deferred compensation or tax-sheltered annuity 
117.5 	program; and
117.6 	(vii) any amount paid by the employer as a supplement to salary, either as a lump-sum 
117.7 	amount or a fixed or matching amount paid on a recurring basis, that is not available to the 
117.8 	employee as cash;
117.9 	(10) the amount equal to that which the employing governmental subdivision would 
117.10 	otherwise pay toward single or family insurance coverage for a covered employee when, 
117.11 	through a contract or agreement with some but not all employees, the employer:
117.12 	(i) discontinues, or for new hires does not provide, payment toward the cost of the 
117.13 	employee's selected insurance coverages under a group plan offered by the employer;
117.14 	(ii) makes the employee solely responsible for all contributions toward the cost of the 
117.15 	employee's selected insurance coverages under a group plan offered by the employer, 
117.16 	including any amount the employer makes toward other employees' selected insurance 
117.17 	coverages under a group plan offered by the employer; and
117.18 	(iii) provides increased salary rates for employees who do not have any employer-paid 
117.19 	group insurance coverages;
117.20 	(11) except as provided in section 353.86 or 353.87, compensation of any kind paid to 
117.21 	volunteer ambulance service personnel or volunteer firefighters, as defined in subdivision 
117.22 	35 or 36;
117.23 	(12) the amount of compensation that exceeds the limitation provided in section 356.611;
117.24 	(13) amounts paid by a federal or state grant for which the grant specifically prohibits 
117.25 	grant proceeds from being used to make pension plan contributions, unless the contributions 
117.26 	to the plan are made from sources other than the federal or state grant; and
117.27 	(14) bonus pay that is not performance or merit pay under paragraph (a), clause (6).
117.28 	(c) Amounts, other than those provided under paragraph (a), clause (3), provided to an 
117.29 	employee by the employer through a grievance proceeding, a court order, or a legal settlement 
117.30 	are salary only if the settlement or court order is reviewed by the executive director and the 
117.31 	amounts are determined by the executive director to be consistent with paragraph (a) and 
117.32 	prior determinations.

118.1 	Sec. 3. Minnesota Statutes 2016, section 353.01, subdivision 47, is amended to read:
118.2 		Subd. 47.Vesting. (a) "Vesting" means obtaining a nonforfeitable entitlement to an 
118.3 	annuity or benefit from a retirement plan administered by the Public Employees Retirement 
118.4 	Association by having credit for sufficient allowable service under paragraph (b), (c), or 
118.5 	(d), whichever applies.
118.6 	(b) For purposes of qualifying for an annuity or benefit as a basic or coordinated plan 
118.7 	member of the general employees retirement plan of the Public Employees Retirement 
118.8 	Association:
118.9 	(1) a public employee who first became a member of the association before July 1, 2010, 
118.10 	is 100 percent vested when the person has accrued credit for not less than three years of 
118.11 	allowable service as defined under subdivision 16 in the general employees retirement plan; 
118.12 	and
118.13 	(2) a public employee who first becomes a member of the association after June 30, 
118.14 	2010, is 100 percent vested when the person has accrued credit for not less than five years 
118.15 	of allowable service as defined under subdivision 16 in the general employees retirement 
118.16 	plan.
118.17 	(c) For purposes of qualifying for an annuity or benefit as a member of the local 
118.18 	government correctional employeesservice retirement plan:
118.19 	(1) a public employee who first became a member of the association before July 1, 2010, 
118.20 	is 100 percent vested when the person has accrued credit for not less than three years of 
118.21 	allowable service as defined under subdivision 16 in the local government correctional 
118.22 	service retirement plan; and
118.23 	(2) a public employee who first becomes a member of the association after June 30, 
118.24 	2010, is vested at the following percentages when the person has accrued creditedcredit 
118.25 	for allowable service as defined under subdivision 16,in the local government correctional 
118.26 	service retirement plan, as follows:
118.27 	(i) 50 percent after five years;
118.28 	(ii) 60 percent after six years;
118.29 	(iii) 70 percent after seven years;
118.30 	(iv) 80 percent after eight years;
118.31 	(v) 90 percent after nine years; and
118.32 	(vi) 100 percent after ten years.
119.1 	(d) For purposes of qualifying for an annuity or benefit as a member of the public 
119.2 	employees police and fire retirement plan:
119.3 	(1) a public employee who first became a member of the association before July 1, 2010, 
119.4 	is 100 percent vested when the person has accrued credit for not less than three years of 
119.5 	allowable service as defined under subdivision 16 in the public employees police and fire 
119.6 	retirement plan;
119.7 	(2) a public employee who first becomes a member of the association after June 30, 
119.8 	2010, and before July 1, 2014, is vested at the following percentages when the person has 
119.9 	accrued credited allowable service as defined under subdivision 16 in the public employees 
119.10 	police and fire retirement plan, as follows:
119.11 	(i) 50 percent after five years;
119.12 	(ii) 60 percent after six years;
119.13 	(iii) 70 percent after seven years;
119.14 	(iv) 80 percent after eight years;
119.15 	(v) 90 percent after nine years; and
119.16 	(vi) 100 percent after ten years; and
119.17 	(3) a public employee who first becomes a member of the association after June 30, 
119.18 	2014, is vested at the following percentages when the person has accrued creditedcredit 
119.19 	for allowable service as defined under subdivision 16 in the public employees police and 
119.20 	fire retirement plan, as follows:
119.21 	(i) 50 percent after ten years;
119.22 	(ii) 55 percent after 11 years;
119.23 	(iii) 60 percent after 12 years;
119.24 	(iv) 65 percent after 13 years;
119.25 	(v) 70 percent after 14 years;
119.26 	(vi) 75 percent after 15 years;
119.27 	(vii) 80 percent after 16 years;
119.28 	(viii) 85 percent after 17 years;
119.29 	(ix) 90 percent after 18 years;
119.30 	(x) 95 percent after 19 years; and
120.1 	(xi) 100 percent after 20 or more years.

120.2 	Sec. 4. Minnesota Statutes 2016, section 353.0162, is amended to read:
120.3 	353.0162 REDUCED SALARY PERIODS SALARY CREDIT PURCHASE FOR 
120.4 	PERIODS OF REDUCED SALARY.
120.5 	(a) A member may purchase additionaldifferential salary credit as described in paragraph 
120.6 	(c) for a period specified in this section paragraph (b).
120.7 	(b) The applicable period is a period during which the member is receiving no or a 
120.8 	reduced salary from the employer while the member is:
120.9 	(1) receiving temporary workers' compensation payments related to the member's service 
120.10 	to the public employer;
120.11 	(2) on an authorized leave of absence, except that if the authorized leave of absence 
120.12 	exceeds 12 months, the period of leave for which differential salary credit may be purchased 
120.13 	is limited to 12 months; or
120.14 	(3) on an authorized partial paid leave of absence as a result of a budgetary or salary 
120.15 	savings program offered or mandated by a governmental subdivision, if certified to the 
120.16 	executive director by the governmental subdivision.
120.17 	(c) The Differential salary amountcredit is the difference between the average monthly
120.18 	salary received by the member during thea period of reduced salary under this section
120.19 	specified in paragraph (b) and the average monthly salary of the member, excluding overtime, 
120.20 	on which contributions to the applicable plan werewould have been made during the period 
120.21 	of the last six months of covered employment occurring immediately before the period of 
120.22 	reduced salary, applied tobased on the member's normal employment period, measured in 
120.23 	hours or otherwise, as applicable, and rate of pay.
120.24 	(d) To receive eligibledifferential salary credit, the member shall pay the plan, by 
120.25 	delivering payment to the executive director, an amount equal to:
120.26 	(1) the applicable employee contribution rate under section 353.27, subdivision 2; 353.65, 
120.27 	subdivision 2; or 353E.03, subdivision 1, as applicable, multiplied by the differential salary 
120.28 	amount;
120.29 	(2) plus an employer equivalent payment equal to the applicable employer contribution 
120.30 	rate in section 353.27, subdivision 3; 353.65, subdivision 3; or 353E.03, subdivision 2, as 
120.31 	applicable, multiplied by the differential salary amount;
121.1 	(3) plus, if applicable, an equivalent employer additional amount equal to the additional 
121.2 	employer contribution rate in section 353.27, subdivision 3a, multiplied by the differential 
121.3 	salary amount.
121.4 	(e) The employer, by appropriate action of its governing body and documented in its 
121.5 	official records, may pay the employer equivalent contributions and, as applicable, the 
121.6 	equivalent employer additional contributions on behalf of the member.
121.7 	(f) Payment under this section must include interest on the contribution amount or 
121.8 	amounts, whichever applies, at an 8.5 percent annual rate until June 30, 2015, and at an 
121.9 	eight percent annual rate thereafter, prorated for applicable months from the date on which 
121.10 	the period of reduced salary specified under this sectionin paragraph (b) terminates to the 
121.11 	date on which the payment or payments are received by the executive director. Payment 
121.12 	under this section must be completed withinby the earlierearliest of:
121.13 	(1) 30 days fromafter termination of public service by the employee under section 
121.14 	353.01, subdivision 11a, or;
121.15 	(2) one year after the termination of the period specified in paragraph (b), as further 
121.16 	restricted under this section.; or
121.17 	(3) 30 days after the commencement of a disability benefit.
121.18 	(g) The period for which additional allowable salary credit may be purchased is limited 
121.19 	to the period during which the person receives temporary workers' compensation payments 
121.20 	or for those business years in which the governmental subdivision offers or mandates a 
121.21 	budget or salary savings program, as certified to the executive director by a resolution of 
121.22 	the governing body of the governmental subdivision. For an authorized leave of absence, 
121.23 	the period for which allowable salary credit may be purchased may not exceed 12 months 
121.24 	of authorized leave.
121.25 	(h) To purchase(g) If the member has purchased 12 months of differential salary credit
121.26 	for a subsequent period of temporary workers' compensation benefits or subsequent 
121.27 	authorized medical leave of absence, the member must return to public service and render 
121.28 	a minimum of three months of allowable service to purchase differential salary credit for a 
121.29 	subsequent leave of absence.

121.30 	Sec. 5. Minnesota Statutes 2016, section 353.03, subdivision 3, is amended to read:
121.31 		Subd. 3.Duties and powers. (a) The board shall:
121.32 	(1) elect a president and vice-president;
122.1 	(2) approve the staffing complement, as recommended by the executive director, 
122.2 	necessary to administer the fund;
122.3 	(3) adopt bylaws for its own government and for the management of the fund consistent 
122.4 	with the laws of the state and may modify them at pleasure;
122.5 	(4) adopt, alter, and enforce reasonable rules consistent with the laws of the state and 
122.6 	the terms of the applicable benefit plans for the administration and management of the fund, 
122.7 	for the payment and collection of payments from members and for the payment of 
122.8 	withdrawals and benefits, and that are necessary in order to comply with the applicable 
122.9 	federal Internal Revenue Service and Department of Labor requirements;
122.10 	(5) pass upon and allow or disallow all applications for membership in the fund and 
122.11 	allow or disallow claims for withdrawals, pensions, or benefits payable from the fund;
122.12 	(6) authorize procedures for use of electronic signatures as defined in section 325L.02, 
122.13 	paragraph (h), on applications and forms required by the association;
122.14 	(7)(6) adopt an appropriate mortality table based on experience of the fund as 
122.15 	recommended by the association actuary and approved under section 356.215, subdivision 
122.16 	18, with interest set at the rate specified in section 356.215, subdivision 8;
122.17 	(8)(7) provide for the payment out of the fund of the cost of administering this chapter, 
122.18 	of all necessary expenses for the administration of the fund and of all claims for withdrawals, 
122.19 	pensions, or benefits allowed;
122.20 	(9)(8) approve or disapprove all recommendations and actions of the executive director 
122.21 	made subject to its approval or disapproval by subdivision 3a; and
122.22 	(10)(9) approve early retirement and optional annuity factors, subject to review by the 
122.23 	actuary retained by the Legislative Commission on Pensions and Retirement; establish the 
122.24 	schedule for implementation of the approved factors; and notify the Legislative Commission 
122.25 	on Pensions and Retirement of the implementation schedule.
122.26 	(b) In passing upon all applications and claims, the board may summon, swear, hear, 
122.27 	and examine witnesses and, in the case of claims for disability benefits, may require the 
122.28 	claimant to submit to a medical examination by a physician of the board's choice, at the 
122.29 	expense of the fund, as a condition precedent to the passing on the claim, and, in the case 
122.30 	of all applications and claims, may conduct investigations necessary to determine their 
122.31 	validity and merit.
122.32 	(c) The board may continue to authorize the sale of life insurance to members under the 
122.33 	insurance program in effect on January 1, 1985, but must not change that program without 
123.1 	the approval of the commissioner of management and budget. The association shall not 
123.2 	receive any financial benefit from the life insurance program beyond the amount necessary 
123.3 	to reimburse the association for costs incurred in administering the program. The association 
123.4 	shall not engage directly or indirectly in any other activity involving the sale or promotion 
123.5 	of goods or services, or both, whether to members or nonmembers.
123.6 	(d) The board shall establish procedures governing reimbursement of expenses to board 
123.7 	members. These procedures must define the types of activities and expenses that qualify 
123.8 	for reimbursement, must provide that all out-of-state travel be authorized by the board, and 
123.9 	must provide for the independent verification of claims for expense reimbursement. The 
123.10 	procedures must comply with the applicable rules and policies of the Department of 
123.11 	Management and Budget and the Department of Administration.
123.12 	(e) The board may purchase fiduciary liability insurance and official bonds for the 
123.13 	officers and members of the board of trustees and employees of the association and may 
123.14 	purchase property insurance or may establish a self-insurance risk reserve including, but 
123.15 	not limited to, data processing insurance and "extra-expense" coverage.

123.16 	Sec. 6. Minnesota Statutes 2016, section 353.29, subdivision 4, is amended to read:
123.17 		Subd. 4.Application for annuity. Application for a retirement annuity or optional 
123.18 	annuity may be made by a member or by a person authorized to actacting on behalf of the 
123.19 	member, upon proof of authority satisfactory to the executive director. Every application 
123.20 	for retirement must be made in writing on a form or in a format prescribed by the executive 
123.21 	director and must be substantiated by written proof of the member's age and identity. The 
123.22 	notarized signature of a member's spouse on a retirement annuity application acknowledging 
123.23 	the member's annuity selection meets the notice requirement to the spouse under section 
123.24 	356.46, subdivision 3. An application for a retirement annuity is not complete until all 
123.25 	necessary supporting documents are received by the executive director.

123.26 	Sec. 7. Minnesota Statutes 2016, section 353.29, subdivision 7, is amended to read:
123.27 		Subd. 7.Annuities; accrual Annuity starting date. (a) Except as to elected public 
123.28 	officials specified in paragraph (b), a retirement annuity granted under this chapter begins 
123.29 	withon the first day of the first calendar month after the date of termination of public service
123.30 	or up to six months before the first of the month in which a complete application is received 
123.31 	by the executive director under subdivision 4, whichever is later. The annuity must be paid 
123.32 	in equal monthly installments and does not accrue, unless suspended or reduced under 
124.1 	section 353.37. Annuity payments shall not be paid beyond the end of the month in which 
124.2 	entitlement to the annuity has terminated.
124.3 	(b) An annuity granted to an electiveelected public official accruesmay begin on the 
124.4 	day following the expiration of the public office or expiration of the right to hold that office
124.5 	that qualified the elected official for membership under section 353.01, subdivision 2a or 
124.6 	2d, if a complete application is received by the executive director under subdivision 4 within 
124.7 	six months of the date of termination of public service. The annuity for the month during 
124.8 	which the expiration occurred is prorated accordingly.
124.9 	(c) An annuity, once granted, must not be increased, decreased, or revoked except under 
124.10 	this chapter.
124.11 	(d) An annuity payment may be made retroactive for up to one year prior to that month 
124.12 	in which a complete application is received by the executive director under subdivision 4.
124.13 	(e)(d) If an annuitant dies before negotiating the check for the month in which death 
124.14 	occurs, payment must first be made to the surviving spouse, or if none, then to the designated 
124.15 	beneficiary, or if none, lastly to the estate.

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

124.25 	Sec. 9. Minnesota Statutes 2016, section 353.32, subdivision 1, is amended to read:
124.26 		Subdivision 1.Before retirement. If a member or former member who terminated public 
124.27 	service dies before retirement or before receiving any retirement annuity and no other 
124.28 	payment of any kind is or may become payable to any person, a refund is payable to the 
124.29 	designated beneficiary or, if there be none, to the surviving spouse, or, if none, to the legal 
124.30 	representative of the decedent's estate. The refund must be in an amount equal to accumulated 
124.31 	deductions, less the sum of any disability or survivor benefits that have been paid by the 
124.32 	fund, plus annual compound interest thereon at the rate specified in section 353.34, 
125.1 	subdivision 2, and less the sum of any disability or survivor benefits, if any, that may have 
125.2 	been paid by the fund; provided that a survivor who has a right to benefits under section 
125.3 	353.31 may waive such benefits in writing, except such benefits for a dependent child under 
125.4 	the age of 18 years may only be waived under an order of the district court.

125.5 	Sec. 10. Minnesota Statutes 2016, section 353.34, subdivision 2, is amended to read:
125.6 		Subd. 2.Refund with interest. (a) Except as provided in subdivision 1, any person who 
125.7 	ceases to be a public employee is entitled to receive a refund in an amount equal to 
125.8 	accumulated deductions with, less the sum of any disability benefits that have been paid by 
125.9 	the fund, plus annual compound interest to the first day of the month in which the refund 
125.10 	is processed.
125.11 	(b) For a person who ceases to be a public employee before July 1, 2011, the refund 
125.12 	interest is at the rate of six percent to June 30, 2011, and at the rate of four percent after 
125.13 	June 30, 2011. For a person who ceases to be a public employee after July 1, 2011, the 
125.14 	refund interest is at the rate of four percent.
125.15 	(c) If a person repays a refund and subsequently applies for another refund, the repayment 
125.16 	amount, including interest, is added to the fiscal year balance in which the repayment was 
125.17 	made.
125.18 	(d) If the refund payable to a member is based on employee deductions that are 
125.19 	determined to be invalid under section 353.27, subdivision 7, the interest payable on the 
125.20 	invalid employee deductions is four percent.

125.21 	Sec. 11. Minnesota Statutes 2016, section 353.35, subdivision 1, is amended to read:
125.22 		Subdivision 1.Refund rights. (a) Except as provided in paragraph (b), when any former 
125.23 	member accepts a refund, all existing service credits and all rights and benefits to which 
125.24 	the person was entitled prior to the acceptance of the refund must terminate.
125.25 	(b) A refund under section 353.651, subdivision 3, paragraph (c), does not result in a 
125.26 	forfeiture of salary credit for the allowable service credit covered by the refund.
125.27 	(c) TheIf a person forfeits service credits, rights, and benefits under paragraph (a), the 
125.28 	person's service credits, rights, and benefits of a former member must notshall be restored 
125.29 	untilif the person returns to active service and acquiresemployment covered by the 
125.30 	association for at least six months of allowable service credit after taking the last refund
125.31 	and repays the refund or refunds taken and interestall amounts previously received under 
125.32 	section 353.34, subdivisions 1 andsubdivision 2, plus interest at the annual rate of 8.5 
126.1 	percent until June 30, 2015, and eight percent thereafter, compounded annually, from the 
126.2 	date each amount was received to the date the amount is repaid. If the person elects to restore 
126.3 	service credit in a particular fund from which the person has taken more than one refund, 
126.4 	the person must repay all refunds to that fund. All refundsThe repayment must be repaid
126.5 	made within six months of the last date of terminationday of public service employment. 
126.6 	A person may have service credits, rights, and benefits restored under this paragraph only 
126.7 	one time.

126.8 	Sec. 12. Minnesota Statutes 2016, section 353.37, subdivision 1, is amended to read:
126.9 		Subdivision 1.Salary maximums. (a) The annuity of a person otherwise eligible for 
126.10 	If a member who is receiving an annuity from the general employees retirement plan of the 
126.11 	Public Employees Retirement Association, the public employees police and fire retirement 
126.12 	plan, or the local government correctional employees retirement plan must be suspended 
126.13 	under subdivision 2 or reduced under subdivision 3, whichever results in the higher annual 
126.14 	annuity amount, if the person reenters public service as a nonelective employee ofa 
126.15 	retirement plan administered by the association is employed by (1) a governmental 
126.16 	subdivisionemployer in a nonelected position not required by law to be covered by a plan 
126.17 	administered by the Minnesota State Retirement System, the Teachers Retirement 
126.18 	Association, or the St. Paul Teachers Retirement Fund Association, or returns to work as 
126.19 	an employee of(2) by a labor organization that represents public employees who are 
126.20 	association members under this chapter, and the member's salary for the reemployment 
126.21 	service exceeds the annual maximum salary defined in paragraph (b), the annuity shall be 
126.22 	suspended under subdivision 2 or reduced under subdivision 3, whichever results in the 
126.23 	higher annuity amount.
126.24 	(b) The annual maximum salary means the annual maximum earnings allowable for that
126.25 	at the member's age for the continued receipt of full benefit amounts monthly under the 
126.26 	federal Old Age, Survivors and Disability Insurance Program as set by the secretary of 
126.27 	health and human services under United States Code, title 42, section 403, in anyeffect for 
126.28 	the calendar year. If the personmember has not yet reached the minimum age for the receipt 
126.29 	of Social Security benefits, the maximum salary for the person is equal tomeans the annual 
126.30 	maximum earnings allowable for the minimum age for the receipt of Social Security benefits.
126.31 	(b)(c) The provisions of paragraph (a) do not apply to the members of the general 
126.32 	employees plan of the Public Employees Retirement Association who were former members 
126.33 	of MERF.

127.1 	Sec. 13. Minnesota Statutes 2016, section 353.64, subdivision 10, is amended to read:
127.2 		Subd. 10.Pension coverage for Hennepin Healthcare System, Inc.; paramedics and 
127.3 	emergency medical technicians. An employee of Hennepin Healthcare System, Inc. is a 
127.4 	member of the public employees police and fire retirement plan under sections 353.63 to 
127.5 	353.68 if the person is:
127.6 	(1) certified as a paramedic or emergency medical technician by the state under section 
127.7 	144E.28, subdivision 4;
127.8 	(2) employed full at least half time by Hennepin Healthcare System, Inc. as:
127.9 	(i) a paramedic or;
127.10 	(ii) an emergency medical technician by Hennepin County; or
127.11 	(iii) a supervisor or manager of paramedics or emergency medical technicians; and
127.12 	(3) not eligible for coverage under the agreement signed between the state and the 
127.13 	secretary of the federal Department of Health and Human Services making the provisions 
127.14 	of the federal Old Age, Survivors, and Disability Insurance Act applicable to paramedics 
127.15 	and emergency medical technicians because the person's position is excluded after that date 
127.16 	from application under United States Code, title 42, sections 418(d)(5)(A) and 418(d)(8)(D), 
127.17 	and section 355.07.
127.18 	Hennepin Healthcare System, Inc. shall deduct the employee contribution from the salary 
127.19 	of each full-time paramedic and emergency medical technician it employscovered employee,
127.20 	as required by section 353.65, subdivision 2, shall make the employer contribution for each 
127.21 	full-time paramedic and emergency medical technician it employscovered employee, as 
127.22 	required by section 353.65, subdivision 3, and shall meet the employer recording and 
127.23 	reporting requirements in section 353.65, subdivision 4.

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

128.1 	Sec. 15. Minnesota Statutes 2016, section 353F.025, subdivision 2, is amended to read:
128.2 		Subd. 2.Reporting privatizations. (a) If the actuarial calculations under subdivision 
128.3 	1, paragraph (c), indicate privatization can be approved because a net gain to the general 
128.4 	employees retirement plan of the Public Employees Retirement Association is expected, or 
128.5 	if paragraph (b) applies, the executive director shall, following acceptance of the actuarial 
128.6 	calculations by the board of trustees, forward notice and supporting documentation, including 
128.7 	a copy of the actuary's report and findings, to the chair and the executive director of the 
128.8 	Legislative Commission on Pensions and Retirement and the chairs and the ranking minority 
128.9 	members of the committees with jurisdiction over governmental operations in the house of 
128.10 	representatives and senate.
128.11 	(b) If the calculations under subdivision 1, paragraph (c), indicate a net loss, the executive 
128.12 	director shall recommend to the board of trustees that the privatization be approved if the 
128.13 	chief clerical officer of the applicable governmental subdivision submits a resolution from 
128.14 	the governing body specifying that a lump sum payment will be made to the Public 
128.15 	Employees Retirement Association equal to the net loss, plus interest. The interest must be 
128.16 	computed using the applicable ultimate preretirement interest rate assumption under section 
128.17 	356.215, subdivision 8, expressed as a monthly rate, from the date of the actuarial valuation 
128.18 	from which the actuarial accrued liability data was used to determine the net loss in the 
128.19 	actuarial study under subdivision 1, to the date of payment, with annual compounding. 
128.20 	Payment must be made on or after the effective date of privatization.
128.21 	(c) The Public Employees Retirement Association must maintain a list that includes the 
128.22 	names of all privatized former public employers in the association's comprehensive annual 
128.23 	financial report and on the association's Web site. Annually by March 1, the association 
128.24 	must submit to the executive director of the Legislative Commission on Pensions and 
128.25 	Retirement the names of any privatized former public employers approved since the 
128.26 	publication of the previous fiscal year's comprehensive annual financial report.

128.27 	Sec. 16. Minnesota Statutes 2016, section 353F.04, subdivision 2, is amended to read:
128.28 		Subd. 2.Exceptions. The increased augmentation rates specified in subdivision 1 do 
128.29 	not apply to a privatized former public employee:
128.30 	(1) beginning the first of the month in which the privatized former public employee 
128.31 	becomes covered again by a retirement plan enumerated in section 356.30, subdivision 3, 
128.32 	if the employee accrues at least six months of credited service in any single plan enumerated 
128.33 	in section 356.30, subdivision 3, except clause (6);
129.1 	(2) beginning the first of the month in which the privatized former public employee 
129.2 	becomes covered again by the general employees retirement plan of the Public Employees 
129.3 	Retirement Association;
129.4 	(3) beginning the first of the month after a privatized former public employee terminates 
129.5 	service with the successor entity privatized former public employer; or
129.6 	(4) if the person begins receipt of a retirement annuity while employed by the employer 
129.7 	which assumed operations of or purchased the privatized former public employer.

129.8 	Sec. 17. Minnesota Statutes 2016, section 353F.05, is amended to read:
129.9 	353F.05 AUTHORIZATION FOR ADDITIONAL ALLOWABLE SERVICE FOR 
129.10 	EARLY RETIREMENT PURPOSES.
129.11 	(a) For the purpose of determining eligibility for early retirement benefits provided under 
129.12 	section 353.30, subdivision 1a, of the edition of Minnesota Statutes published in the year 
129.13 	before the year in which the privatization occurred, and notwithstanding any provision of 
129.14 	chapter 353, to the contrary, the years of allowable service for a privatized former public 
129.15 	employee who transfers employment on the effective date of privatization and does not 
129.16 	apply for a refund of contributions under section 353.34, subdivision 1, of the edition of 
129.17 	Minnesota Statutes published in the year before the year in which the privatization occurred, 
129.18 	or any similar provision, includes service with the successor employer to the privatized 
129.19 	former public employer following the effective date. The successorprivatized former public 
129.20 	employer shall provide any reports that the executive director of the Public Employees 
129.21 	Retirement Association may reasonably request to permit calculation of benefits.
129.22 	(b) To be eligible for early retirement benefits under this section, the individual must 
129.23 	separate from service with the successor to the privatized former public employer. The 
129.24 	privatized former public employee, or an individual authorized to act on behalf of that 
129.25 	employee, may apply for an annuity following application procedures under section 353.29, 
129.26 	subdivision 4.

129.27 	Sec. 18. Minnesota Statutes 2016, section 353F.057, is amended to read:
129.28 	353F.057 TERMINATION FROM SERVICE REQUIREMENT.
129.29 	Upon termination of service from the privatized former public employer or any successor 
129.30 	entity after the effective date of privatization, a privatized former public employee must 
129.31 	separate from any employment relationship with the privatized former public employer or 
130.1 	any successor entity for at least 30 days to qualify to receive a retirement annuity under this 
130.2 	chapter.

130.3 	Sec. 19. Minnesota Statutes 2016, section 353F.06, is amended to read:
130.4 	353F.06 APPLICATION OF REEMPLOYED ANNUITANT EARNINGS 
130.5 	LIMITATIONS.
130.6 	If a privatized former public employee satisfies the separation from service requirement 
130.7 	in section 353F.057 and thereafter resumes employment with the privatized former public 
130.8 	employer or any successor entity or a governmental subdivision under section 353.01, 
130.9 	subdivision 6, the reemployed annuitant earnings limitations of section 353.37 apply.

130.10 	Sec. 20. Minnesota Statutes 2016, section 353F.07, is amended to read:
130.11 	353F.07 EFFECT ON REFUND.
130.12 	Notwithstanding any provision of chapter 353 to the contrary, privatized former public 
130.13 	employees may receive a refund of employee accumulated contributions plus interest as 
130.14 	provided in section 353.34, subdivision 2, at any time after the transfer of employment to 
130.15 	the successor employer of the privatized former public employer. If a privatized former 
130.16 	public employee has received a refund from a pension plan listed in section 356.30, 
130.17 	subdivision 3, the person may not repay that refund unless the person again becomes a 
130.18 	member of one of those listed plans and complies with section 356.30, subdivision 2.

130.19 	Sec. 21. [353F.09] APPLICATION TO SALES OF PRIVATIZED FORMER PUBLIC 
130.20 	EMPLOYERS.
130.21 	A medical facility or other employing unit shall cease to be a privatized former public 
130.22 	employer and its employees shall cease to be considered privatized former public employees 
130.23 	under this chapter upon the sale of the operations of the medical facility or employing unit 
130.24 	to another employer or the sale of the medical facility or employing unit to another employer. 
130.25 	The privatized former public employees shall be entitled to benefits accrued under this 
130.26 	chapter to the date of the sale, but shall not accrue additional benefits after the date of the 
130.27 	sale.

130.28 	Sec. 22.  REPEALER.
 130.29 	Minnesota Statutes 2016, section 353.0161, is repealed.

131.1 	Sec. 23. EFFECTIVE DATE.
 131.2 	(a) Sections 1 to 13 and 22 are effective June 30, 2018.
131.3 	(b) Sections 14 to 21 are effective for privatizations with an effective date of privatization 
131.4 	under Minnesota Statutes, section 353F.02, subdivision 3, after June 30, 2018, and for sales 
131.5 	of privatized former public employers after June 30, 2018.

131.6 	ARTICLE 11
131.7 	TEACHERS RETIREMENT ASSOCIATION
131.8 	ADMINISTRATIVE PROVISIONS

131.9 	Section 1. Minnesota Statutes 2016, section 354.05, subdivision 2, is amended to read:
131.10 		Subd. 2.Teacher. (a) "Teacher" means:
131.11 	(1) a person who renders service as a teacher, supervisor, principal, superintendent, 
131.12 	librarian, nurse, counselor, social worker, therapist, or psychologist in:
131.13 	(i) a public school of the state other than in Independent School District No. 625 or in 
131.14 	Independent School District No. 709, or in any;
131.15 	(ii) a charter school, irrespective of the location of the school, or in any;
131.16 	(iii) a charitable, penal, or correctional institutionsinstitution of a governmental 
131.17 	subdivision,; or
131.18 	(iv) the Perpich Center for Arts Education, except that any employee of the Perpich 
131.19 	Center for Arts Education who was covered by the Minnesota State Retirement System 
131.20 	general state employees retirement plan as of July 1, 2018, shall continue to be covered by 
131.21 	that plan and not by the Teachers Retirement Association;
131.22 	(2) a person who is engaged in educational administration in connection with the state 
131.23 	public school system, whether the position be a public office or anas employment;
131.24 	(3) a person who renders service as a charter school director or chief administrative 
131.25 	officer; provided, however, that if the charter school director or chief administrative officer 
131.26 	is covered by the Public Employees Retirement Association general employees retirement 
131.27 	plan on July 1, 2018, the charter school director or chief administrative officer shall continue 
131.28 	to be covered by that plan and not by the Teachers Retirement Association;
131.29 	(2)(4) an employee of the Teachers Retirement Association;
131.30 	(3)(5) a person who renders teaching service on a part-time basis and who also renders 
131.31 	other services for a single employing unit where the teaching service comprises at least 50 
132.1 	percent of the combined employment salary is a member of the association for all services 
132.2 	with the single employing unit or, if less than 50 percent of the combined employment 
132.3 	salary, the executive director determines all of the combined service is covered by the 
132.4 	association; or
132.5 	(4)(6) a person who is not covered by the plans established under chapter 352D, 354A, 
132.6 	or 354B and who is employed by the Board of Trustees of the Minnesota State Colleges 
132.7 	and Universities system in an unclassified position as:
132.8 	(i) a president, vice-president, or dean;
132.9 	(ii) a manager or a professional in an academic or an academic support program other 
132.10 	than specified in item (i);
132.11 	(iii) an administrative or a service support faculty position; or
132.12 	(iv) a teacher or a research assistant.
132.13 	(b) "Teacher" does not mean:
132.14 	(1) a person who works for a school or institution as an independent contractor as defined 
132.15 	by the Internal Revenue Service;
132.16 	(2) a person who renders part-time teaching service or who is a customized trainer as 
132.17 	defined by the Minnesota State Colleges and Universities system if (i) the service is incidental 
132.18 	to the regular nonteaching occupation of the person; and (ii) the employer stipulates annually 
132.19 	in advance that the part-time teaching service or customized training service will not exceed 
132.20 	300 hours in a fiscal year and retains the stipulation in its records; and (iii) the part-time 
132.21 	teaching service or customized training service actually does not exceed 300 hours in a 
132.22 	fiscal year;
132.23 	(3) a person exempt from licensure under section 122A.30;
132.24 	(4)(2) annuitants of the teachers retirement plan who are employed after retirement by 
132.25 	an employing unit that participates in the teachers retirement plan during the course of that 
132.26 	reemployment;
132.27 	(5)(3) a person who is employed by the University of Minnesota;
132.28 	(6)(4) a member or an officer of any general governing or managing board or body of 
132.29 	an employing unit that participates in the teachers retirement plan; or
132.30 	(7)(5) a person employed by Independent School District No. 625 or Independent School 
132.31 	District No. 709 as a teacher as defined in section 354A.011, subdivision 27.

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

133.5 	Sec. 3. Minnesota Statutes 2016, section 354.06, subdivision 2, is amended to read:
133.6 		Subd. 2.President; executive director. The board shall annually elect one of its members 
133.7 	as president. It shall elect an executive director. Notwithstanding any law to the contrary, 
133.8 	the board must set the salary of the executive director. The salary of the executive director 
133.9 	must not exceed the limit for a position listed in section 15A.0815, subdivision 2. The salary 
133.10 	of the assistant executive director who shall be in the unclassified service, shall be set in 
133.11 	accordance with section 43A.18, subdivision 3. The executive director shall serve during 
133.12 	the pleasure of the board and be the executive officer of the board, with such duties as the 
133.13 	board shall prescribe. The board shall employ all other clerks and employees necessary to 
133.14 	properly administer the association. The cost and expense of administering the provisions 
133.15 	of this chapter shall be paid by the association. The board shall appoint an executive director 
133.16 	shall be appointed by the board on the basis of fitness education, experience in the retirement 
133.17 	field and leadership, ability to manage and lead system staff, and ability to assist the board 
133.18 	in setting a vision for the system. The executive director shall have had at least five years 
133.19 	of experience on the administrative staff of a major retirement system.

133.20 	Sec. 4. Minnesota Statutes 2016, section 354.06, subdivision 2a, is amended to read:
133.21 		Subd. 2a.Duties of executive director. The management of the association is vested 
133.22 	in the executive director who shall be the executive and administrative head of the 
133.23 	association. The executive director shall act as advisor to the board on all matters pertaining 
133.24 	to the association and shall also act as the secretary of the board. The executive director 
133.25 	shall:
133.26 	(1) attend all meetings of the board;
133.27 	(2) prepare and recommend to the board appropriate rules to carry out the provisions of 
133.28 	this chapter;
133.29 	(3) establish and maintain an adequate system of records and accounts following 
133.30 	recognized accounting principles and controls;
133.31 	(4) designate, as necessary, a deputy executive director and an assistant executive director 
133.32 	in the unclassified service, as defined in section 43A.08, whose salaries shall be set in 
134.1 	accordance with section 43A.18, subdivision 3, and two assistant executive directors in the 
134.2 	classified service, as defined in section 43A.07, with the approval of the board, and appoint 
134.3 	such employees, both permanent and temporary, as are necessary to carry out the provisions 
134.4 	of this chapter;
134.5 	(5) organize the work of the association as the director deems necessary to fulfill the 
134.6 	functions of the association, and define the duties of its employees and delegate to them 
134.7 	any powers or duties, subject to the director's control and under such conditions as the 
134.8 	director may prescribe;
134.9 	(6) with the approval of the board, contract and set the compensation for the services of 
134.10 	an approved actuary, professional management services, and any other consulting services. 
134.11 	These contracts are not subject to the competitive bidding procedure prescribed by chapter 
134.12 	16C. An approved actuary retained by the executive director shall function as the actuarial 
134.13 	advisor of the board and the executive director and may perform actuarial valuations and 
134.14 	experience studies to supplement those performed by the actuary retained under section 
134.15 	356.214. Any supplemental actuarial valuations or experience studies shall be filed with 
134.16 	the executive director of the Legislative Commission on Pensions and Retirement. Copies 
134.17 	of professional management survey reports must be transmitted to the secretary of the senate, 
134.18 	the chief clerk of the house of representatives, and the Legislative Reference Library as 
134.19 	provided by section 3.195, and to the executive director of the commission at the same time 
134.20 	as reports are furnished to the board. Only management firms experienced in conducting 
134.21 	management surveys of federal, state, or local public retirement systems are qualified to 
134.22 	contract with the executive director;
134.23 	(7) with the approval of the board, provide in-service training for the employees of the 
134.24 	association;
134.25 	(8) make refunds of accumulated contributions to former members and to the designated 
134.26 	beneficiary, surviving spouse, legal representative, or next of kin of deceased members or 
134.27 	deceased former members, under this chapter;
134.28 	(9) determine the amount of the annuities and disability benefits of members covered 
134.29 	by the association and authorize payment of the annuities and benefits beginning as of the 
134.30 	dates on which the annuities and benefits begin to accrue, under this chapter;
134.31 	(10) pay annuities, refunds, survivor benefits, salaries, and necessary operating expenses 
134.32 	of the association;
134.33 	(11) prepare and submit to the board and the legislature an annual financial report 
134.34 	covering the operation of the association, as required by section 356.20;
135.1 	(12) certify funds available for investment to the State Board of Investment;
135.2 	(13) with the advice and approval of the board, request the State Board of Investment 
135.3 	to sell securities on determining that funds are needed for the purposes of the association;
135.4 	(14) prepare and submit biennial and annual budgets to the board and with the approval 
135.5 	of the board submit those budgets to the Department of Management and Budget; and
135.6 	(15) with the approval of the board, perform such other duties as may be required for 
135.7 	the administration of the association and the other provisions of this chapter and for the 
135.8 	transaction of its business. The executive director may:
135.9 	(i) reduce all or part of the accrued interest and fines payable by an employing unit for 
135.10 	reporting requirements under section 354.52 this chapter, based on an evaluation of any 
135.11 	extenuating circumstances of the employing unit;
135.12 	(ii) assign association employees to conduct field audits of an employing unit to ensure 
135.13 	compliance with the provisions of this chapter; and
135.14 	(iii) recover overpayments, if not repaid to the association, by suspending or reducing 
135.15 	the payment of a retirement annuity, refund, disability benefit, survivor benefit, or optional 
135.16 	annuity under this chapter until the overpayment, plus interest, has been recovered.

135.17 	Sec. 5. Minnesota Statutes 2016, section 354.095, is amended to read:
135.18 	354.095 MEDICAL LEAVE.
135.19 	(a) Upon granting a medical leave, an employing unit must certify the leave to the 
135.20 	association on a form specified by the executive director. A member of the association who 
135.21 	is on an authorized medical leave of absence is entitled to receive allowable service credit, 
135.22 	not to exceed one year five years, for the period of leave, upon making the prescribed 
135.23 	payment to the fund under section 354.72. A member may not receive more than one year 
135.24 	of allowable service credit during any fiscal year by making payment under this section. A 
135.25 	member may not receive disability benefits under section 354.48 and receive allowable 
135.26 	service credit under this section for the same period of time.
135.27 	(b) The executive director shall reject an application for disability benefits under section 
135.28 	354.48 if the member is applying only because an employer-sponsored provider of private 
135.29 	disability insurance benefits requires the application and the member would not have applied 
135.30 	for disability benefits in the absence of the requirement. The member shall submit a copy 
135.31 	of the disability insurance policy that requires an application for disability benefits from 
136.1 	the plan if the member wishes to assert that the application is only being submitted because 
136.2 	of the disability insurance policy requirement.
136.3 	(c) Notwithstanding the provisions of any agreement to the contrary, employee and 
136.4 	employer contributions may not be made to receive allowable service credit under this 
136.5 	section if the member does not retain the right to full reinstatement both during and at the 
136.6 	end of the medical leave.

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

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

136.21 	Sec. 8. Minnesota Statutes 2016, section 354.45, is amended by adding a subdivision to 
136.22 	read:
136.23 		Subd. 3.Payment upon death of former spouse. Upon the death of the former spouse 
136.24 	to whom payments are to be made before the end of the specified payment period, payments 
136.25 	shall be made according to the terms of a beneficiary form completed by the former spouse 
136.26 	or, if no beneficiary form, to the estate of the former spouse or as otherwise ordered by a 
136.27 	court of competent jurisdiction.

136.28 	Sec. 9. Minnesota Statutes 2016, section 354.46, subdivision 6, is amended to read:
136.29 		Subd. 6.Application. (a) A beneficiary designation and an application for benefits under 
136.30 	this section must be in writing on a form prescribed by the executive director.
137.1 	(b) Sections 354.55, subdivision 11, and 354.60 apply to a deferred annuity payable 
137.2 	under this section.
137.3 	(c) Unless otherwise specified, the annuity must be computed under section 354.44, 
137.4 	subdivision 2 or 6, whichever is applicable.
137.5 	(d) Each designated beneficiary eligible for a lifetime benefit under this subdivision may 
137.6 	apply for an annuity any time after the member's death. The benefit may not begin to accrue 
137.7 	more than six months before the date the application is filed with the executive director and 
137.8 	may not accrue before the member's death.

137.9 	Sec. 10. Minnesota Statutes 2016, section 354.48, subdivision 1, is amended to read:
137.10 		Subdivision 1.Age, service and salary requirements. A member who is totally and 
137.11 	permanently disabled, who has not reached the normal retirement age as defined in section 
137.12 	354.05, subdivision 38, and who has at least three years of credited allowable service at the 
137.13 	time that the total and permanent disability begins is entitled to a disability benefit based 
137.14 	on this allowable service in an amount provided in subdivision 3. If the disabled member's 
137.15 	teaching service has terminated at any time, at least two of the required three years of 
137.16 	allowable service must have been rendered after last becoming a member. Any member 
137.17 	whose average salary is less than $75 per month is not entitled to disability benefits.

137.18 	Sec. 11. Minnesota Statutes 2016, section 354.512, is amended to read:
137.19 	354.512 RECOVERY OF DEFICIENCIES.
137.20 	In addition to any other remedies permitted under law, if an employing unit or other 
137.21 	entity required by law to make any form of payment to the Teachers Retirement Association 
137.22 	fails to make full payment within 60 days of notification, the executive director is authorized 
137.23 	to certify the amount of deficiency to the commissioner of management and budget, who 
137.24 	shall deduct the amount from any state aid or appropriation applicable to the employing 
137.25 	unit or entity, and transmit the withheld aid or appropriation to the executive director for 
137.26 	deposit in the fund.

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

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

138.11 	Sec. 14. Minnesota Statutes 2016, section 354.66, subdivision 2, is amended to read:
138.12 		Subd. 2.Qualified part-time teacher program participation requirements. (a) A 
138.13 	teacher in a Minnesota public elementary school, a Minnesota secondary school, or the 
138.14 	Minnesota State Colleges and Universities system who has three years or more of allowable 
138.15 	service in the association or three years or more of full-time teaching service in Minnesota 
138.16 	public elementary schools, Minnesota secondary schools, or the Minnesota State Colleges 
138.17 	and Universities system, by agreement with the board of the employing district or with the 
138.18 	authorized representative of the board, may be assigned to teaching service in a part-time 
138.19 	teaching position under subdivision 3. The agreement must be executed before October 1 
138.20 	of the school year for which the teacher requests to make retirement contributions under 
138.21 	subdivision 4 has been assigned to teaching service in a part-time teaching position under 
138.22 	this section. A copy of the executed agreement must be filed with the executive director of 
138.23 	the association. If the copy of the executed agreement is filed with the association after 
138.24 	October 1 of the school year for which the teacher requests to make retirement contributions 
138.25 	under subdivision 4 has been assigned to teaching service in a part-time teaching position, 
138.26 	the employing unit shall pay the fine specified in section 354.52, subdivision 6, for each 
138.27 	calendar day that elapsed since the October 1 due date, unless the association waives the 
138.28 	fine. The association may not accept an executed agreement that is received by the association 
138.29 	more than 15 months late. The association may not waive the fine required by this section.
138.30 	(b) Notwithstanding paragraph (a), if the teacher is also a legislator:
138.31 	(1) the agreement in paragraph (a) must be executed before March 1 of the school year 
138.32 	for which the teacher requests to make retirement contributions under subdivision 4; and
139.1 	(2) the fines specified in paragraph (a) apply if the employing unit does not file the 
139.2 	executed agreement with the executive director of the association by March 1.

139.3 	Sec. 15. Minnesota Statutes 2016, section 354.72, subdivision 1, is amended to read:
139.4 		Subdivision 1.Application. This section applies to any strike period under section 
139.5 	354.05, subdivision 13, clause (6), and to any period of authorized leave of absence without 
139.6 	pay under sections 354.093, 354.094, 354.095, and 354.096 for which the teacher obtains 
139.7 	credit for allowable service by making payment as specified in this section to the Teachers 
139.8 	Retirement Association fund. Each year of an extended leave of absence under section 
139.9 	354.094 is considered to be a separate leave for purposes of this section.

139.10 	Sec. 16. Minnesota Statutes 2016, section 423A.02, subdivision 3, is amended to read:
139.11 		Subd. 3.Reallocation of amortization state aid. (a) Seventy percent of the difference 
139.12 	between $5,720,000 and the current year amortization aid distributed under subdivision 1 
139.13 	that is not distributed for any reason to a municipality must be distributed by the 
139.14 	commissioner of revenue according to this paragraph. The commissioner shall distribute 
139.15 	60 percent of the amounts derived under this paragraph to the Teachers Retirement 
139.16 	Association, and 40 percent to the St. Paul Teachers Retirement Fund Association to fund 
139.17 	the unfunded actuarial accrued liabilities of the respective funds. These payments must be 
139.18 	made on July 15 each fiscal year. If the St. Paul Teachers Retirement Fund Association or 
139.19 	the Duluth Teachers Retirement Fund Association becomes fully funded, the association's 
139.20 	eligibility for its portion of this aid ceases. Amounts remaining in the undistributed balance 
139.21 	account at the end of the biennium if aid eligibility ceases cancel to the general fund.
139.22 	(b) In order to receive amortization aid under paragraph (a), before June 30 annually 
139.23 	Independent School District No. 625, St. Paul, must make an additional contribution of 
139.24 	$800,000 each year to the St. Paul Teachers Retirement Fund Association.
139.25 	(c) Thirty percent of the difference between $5,720,000 and the current year amortization 
139.26 	aid under subdivision 1 that is not distributed for any reason to a municipality must be 
139.27 	distributed under section 69.021, subdivision 7, paragraph (d), as additional funding to 
139.28 	support a minimum fire state aid amount for volunteer firefighter relief associations.

139.29 	Sec. 17. EFFECTIVE DATE.
 139.30 	(a) Sections 1 to 4; 5, paragraphs (b) and (c); and 6 to 16 are effective June 30, 2018.
139.31 	(b) Section 5, paragraph (a), is effective June 30, 2019.

140.1 	ARTICLE 12
140.2 	ST. PAUL TEACHERS RETIREMENT FUND ASSOCIATION
140.3 	ADMINISTRATIVE PROVISIONS

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

140.13 	Sec. 2. Minnesota Statutes 2016, section 354A.31, subdivision 5, is amended to read:
140.14 		Subd. 5.Unreduced normal retirement annuity. Upon retirement at normal retirement 
140.15 	age, a vested coordinated member is entitled to a normal retirement annuity calculated under 
140.16 	subdivision 4 or 4a, whichever applies.

140.17 	Sec. 3. Minnesota Statutes 2016, section 354A.31, subdivision 6, is amended to read:
140.18 		Subd. 6.Reduced retirement annuity. This subdivision applies only to a person who 
140.19 	first became a coordinated member or a member of a pension fund listed in section 356.30, 
140.20 	subdivision 3, before July 1, 1989, and whose annuity is higher when calculated using the 
140.21 	retirement annuity formula percentage in subdivision 4, paragraph (c), or subdivision 4a, 
140.22 	paragraph (c), in conjunction with this subdivision than when calculated under subdivision 
140.23 	4, paragraph (d), or subdivision 4a, paragraph (d), in conjunction with subdivision 7.
140.24 	(a) Upon retirement at an age before normal retirement age or prior to age 62 with at 
140.25 	least 30 years of service credit, a vested coordinated member shall be entitled to a retirement 
140.26 	annuity in an amount equal to the normal retirement annuity calculated using the retirement 
140.27 	annuity formula percentage in subdivision 4, paragraph (c), or subdivision 4a, paragraph 
140.28 	(c), reduced by one-quarter of one percent for each month that the coordinated member is 
140.29 	under normal retirement age if the coordinated member has less than 30 years of service 
140.30 	credit or is under the age of 62 if the coordinated member has at least 30 years of service 
140.31 	credit.
141.1 	(b) Any coordinated member whose attained age plus credited allowable service totals 
141.2 	90 years is entitled, upon application, to a retirement annuity in an amount equal to the 
141.3 	normal retirement annuity calculated using the retirement annuity formula percentage in 
141.4 	subdivision 4, paragraph (c), or subdivision 4a, paragraph (c), without any reduction by 
141.5 	reason of early retirement.

141.6 	Sec. 4. Minnesota Statutes 2016, section 354A.36, subdivision 4, is amended to read:
141.7 		Subd. 4.Determination of disability. (a) The board of the teachers retirement fund 
141.8 	association shall make the final determination of the existence of a permanent and total 
141.9 	disability. The board shall have the coordinated member examined by at least two licensed 
141.10 	physicians, licensed chiropractors, or licensed psychologists who are selected by the board. 
141.11 	After making any required examinations, each physician, chiropractor, or psychologist with 
141.12 	respect to a mental impairment, shall make a written report to the board concerning the 
141.13 	coordinated member, which shall include a statement of the expert opinion of the physician, 
141.14 	chiropractor, or psychologist as to whether or not the member is permanently and totally 
141.15 	disabled within the meaning of section 354A.011, subdivision 14. The board shall also 
141.16 	obtain a written statement from the employer as to whether or not the coordinated member 
141.17 	was terminated or separated from active employment due to a disability which is deemed 
141.18 	by the employer to reasonably prevent further service by the member to the employer and 
141.19 	which caused the coordinated member not to be entitled to further compensation from the 
141.20 	employer for services rendered by the member. If, after consideration of the reports of the 
141.21 	physicians, chiropractors, or psychologists with respect to a mental impairment, and any 
141.22 	evidence presented by the member or by any other interested parties, the board determines 
141.23 	that the coordinated member is totally and permanently disabled within the meaning of 
141.24 	section 354A.011, subdivision 14, it shall grant the coordinated member a disability benefit. 
141.25 	A member who is placed on a leave of absence without compensation as a result of the 
141.26 	disability is not barred from receiving a disability benefit under this section.
141.27 	(b) The executive director shall reject an application for disability benefits under section 
141.28 	354A.36 if the member is applying only because an employer-sponsored provider of private 
141.29 	disability insurance benefits requires the application and the member would not have applied 
141.30 	for disability benefits in the absence of the requirement. The member shall submit a copy 
141.31 	of the disability insurance policy that requires an application for disability benefits from 
141.32 	the plan if the member wishes to assert that the application is only being submitted because 
141.33 	of the disability insurance policy requirement.

142.1 	Sec. 5. Minnesota Statutes 2016, section 354A.38, is amended to read:
142.2 	354A.38 EFFECT OF REFUND; REPAYMENT OF REFUND.
142.3 		Subdivision 1.Effect of refund; termination of service credit. If a coordinated member 
142.4 	or former coordinated member applies for and acceptsis issued a refund pursuant to section 
142.5 	354A.37, all allowable service which was credited to the member or former member shall 
142.6 	be terminated.
142.7 		Subd. 2.Repayment of refund. A coordinated member with at least two years of 
142.8 	allowable service credited subsequent to the member's last application for and acceptance
142.9 	payment of a refund pursuant to section 354A.37 shall be entitled to repay the refund. The 
142.10 	amount of the refund repayment shall be calculated pursuant to subdivision 3. If the member 
142.11 	has previously applied for and acceptedtaken more than one refund, and the previous refund 
142.12 	orall refunds have not beenmust be repaid, then the member shall be entitled only to repay 
142.13 	all outstanding refunds and shall not be entitled to repay only the most recent refund pro 
142.14 	rata.
142.15 		Subd. 3.Computation of refund repayment amount. If the coordinated member elects 
142.16 	to repay a refund under subdivision 2, the repayment to the fund must be in an amount equal 
142.17 	to refunds the member has acceptedbeen issued plus interest at the rate of 8.5 percent until 
142.18 	June 30, 2015, and eight percent thereafterapplicable annual rate or rates specified in section 
142.19 	356.59, subdivision 5, compounded annually, from the date that the refund was accepted
142.20 	issued to the date that the refund is repaid.

142.21 	Sec. 6. EFFECTIVE DATE.
 142.22 	Sections 1 to 5 are effective June 30, 2018.

142.23 	ARTICLE 13
142.24 	RETIREMENT SYSTEMS, GENERALLY
142.25 	ADMINISTRATIVE PROVISIONS

142.26 	Section 1. Minnesota Statutes 2016, section 356.32, subdivision 2, is amended to read:
142.27 		Subd. 2.Covered retirement plans. The provisions of this section apply to the following 
142.28 	retirement plans:
142.29 	(1) the general state employees retirement plan of the Minnesota State Retirement System, 
142.30 	established under chapter 352;
142.31 	(2) the correctional state employees retirement plan of the Minnesota State Retirement 
142.32 	System, established under chapter 352;
143.1 	(3) the State Patrol retirement plan, established under chapter 352B;
143.2 	(4) the general employees retirement plan of the Public Employees Retirement 
143.3 	Association, established under chapter 353;
143.4 	(5) the public employees police and fire plan of the Public Employees Retirement 
143.5 	Association, established under chapter 353;
143.6 	(6) the local government correctional service retirement plan of the Public Employees 
143.7 	Retirement Association, established under chapter 353E;
143.8 	(7) the Teachers Retirement Association, established under chapter 354; and
143.9 	(7)(8) the St. Paul Teachers Retirement Fund Association, established under chapter 
143.10 	354A.

143.11 	Sec. 2. Minnesota Statutes 2016, section 356.47, subdivision 3, is amended to read:
143.12 		Subd. 3.Payment. (a) Beginning one year after the reemployment withholding period 
143.13 	ends relating to the reemployment that gave rise to the limitation, and the filing of a written 
143.14 	application, the retired member is entitled to the payment, in a lump sum, of the value of 
143.15 	the person's amount under subdivision 2, plus annual compound interest. For the general 
143.16 	state employees retirement plan, the correctional state employees retirement plan, the general 
143.17 	employees retirement plan of the Public Employees Retirement Association, the public 
143.18 	employees police and fire retirement plan, the local government correctional employees 
143.19 	retirement plan, and the teachers retirement plan, the annual interest rate is six percent from 
143.20 	the date on which the amount was deducted from the retirement annuity to the date of 
143.21 	payment or until January 1, 2011, whichever is earlier, and no interest after January 1, 2011. 
143.22 	For the St. Paul Teachers Retirement Fund Association, the annual interest is the rate of six 
143.23 	percent from the date that the amount was deducted from the retirement annuity to the date 
143.24 	of payment or June 30, 2011, whichever is earlier, and with no interest accrual after June 
143.25 	30, 2011.
143.26 	(b) The written application must be on a form prescribed by the chief administrative 
143.27 	officer of the applicable retirement plan.
143.28 	(c) If the retired member dies before the payment provided for in paragraph (a) is made, 
143.29 	the amount is payable, upon written application, to the deceased person's surviving spouse, 
143.30 	or if none, to the deceased person's designated beneficiary, or if none, to the deceased 
143.31 	person's estate.
144.1 	(d) If the amount under subdivision 2 is an eligible rollover distribution as defined in 
144.2 	section 356.635, subdivisions 4 and 5, the applicable retirement plan shall provide notice 
144.3 	and an election:
144.4 	(1) to the member regarding the member's right to elect a direct rollover under section 
144.5 	356.635, subdivisions 3 to 7, in lieu of thea direct payment of the person's amount under 
144.6 	subdivision 2, on or after the payment date under paragraph (a), if the federal Internal 
144.7 	Revenue Code so permits, the retired member may elect to have all or any portion of the 
144.8 	payment amount under this section paid in the form of a direct rollover to an eligible 
144.9 	retirement plan as defined in section 402(c) of the federal Internal Revenue Code that is 
144.10 	specified by the retired member. If the retired member dies with a balance remaining payable 
144.11 	under this section, the surviving spouse of the retired member, or if none, the deceased 
144.12 	person's designated beneficiary, or if none, the administrator of the deceased person's estate 
144.13 	may elect a direct rollover under this paragraph.; or
144.14 	(2) if paragraph (c) applies and the amount is to be paid to a person who is a distributee 
144.15 	as defined in section 356.635, subdivision 7, to the distributee regarding the distributee's 
144.16 	right to elect a direct rollover under section 356.635, subdivisions 3 to 7, in lieu of a direct 
144.17 	payment.

144.18 	Sec. 3. Minnesota Statutes 2016, section 356.635, is amended by adding a subdivision to 
144.19 	read:
144.20 		Subd. 9a.Definitions. (a) The following definitions apply for purposes of this subdivision 
144.21 	and subdivisions 10 to 12.
144.22 	(b) "Annual addition" means the sum for the limitation year of all pretax and after-tax 
144.23 	contributions made by the member or the member's employer and credited to an account in 
144.24 	the name of the member in any defined contribution plan maintained by the employer.
144.25 	(c) "Compensation" means the compensation actually paid or made available to a member 
144.26 	for any limitation year, including all items of remuneration described in Code of Federal 
144.27 	Regulations, title 26, section 1.415(c)-2(b), and excluding all items of remuneration described 
144.28 	in Code of Federal Regulations, title 26, section 1.415(c)-2(c). Compensation for pension 
144.29 	plan purposes for any limitation year shall not exceed the applicable federal compensation 
144.30 	limit described in section 356.611, subdivision 2.
144.31 	(d) "Limitation year" means the calendar year or fiscal year, whichever is applicable to 
144.32 	the particular pension plan.
145.1 	(e) "Maximum permissible benefit" means an annual benefit of $160,000, automatically 
145.2 	adjusted under section 415(d) of the Internal Revenue Code for each limitation year ending 
145.3 	after December 31, 2001, payable in the form of a single life annuity. The new limitation 
145.4 	shall apply to limitation years ending with or within the calendar year of the date of the 
145.5 	adjustment, but a member's benefits shall not reflect the adjusted limit prior to January 1 of 
145.6 	that calendar year. The maximum permissible benefit amount shall be further adjusted as 
145.7 	follows:
145.8 	(1) if the member has less than ten years of participation, the maximum permissible 
145.9 	benefit shall be multiplied by a fraction, the numerator of which is the number of years, or 
145.10 	part thereof, but not less than one year, of participation in the plan, and the denominator of 
145.11 	which is ten;
145.12 	(2) if the annual benefit begins before the member has attained age 62, the determination 
145.13 	as to whether the maximum permissible benefit limit has been satisfied shall be made, in 
145.14 	accordance with regulations prescribed by the United States secretary of the treasury, by 
145.15 	reducing the limit so that the limit, as so reduced, equals an annual benefit, beginning when 
145.16 	the annual benefit actually begins, which is equivalent to a $160,000, as adjusted, annual 
145.17 	benefit beginning at age 62; and
145.18 	(3) if the annual benefit begins after the member has attained age 65, the determination 
145.19 	as to whether the maximum permissible benefit limit has been satisfied shall be made, in 
145.20 	accordance with regulations prescribed by the United States secretary of the treasury, by 
145.21 	increasing the limit so that the limit, as so increased, equals an annual benefit, beginning 
145.22 	when the annual benefit actually begins, which is equivalent to a $160,000, as adjusted, 
145.23 	annual benefit beginning at age 65.

145.24 	Sec. 4. Minnesota Statutes 2016, section 356.635, subdivision 10, is amended to read:
145.25 		Subd. 10.Annual benefit limitations; defined benefit plans. (a) The annual benefit 
145.26 	payable to a member shall not exceed the maximum permissible benefit. If the benefit the 
145.27 	member would otherwise receive for a limitation year would result in the payment of an 
145.28 	annual benefit in excess of the maximum permissible benefit, the benefit shall be reduced 
145.29 	to the extent necessary so the benefit does not exceed the maximum permissible benefit.
145.30 	(b) For purposes of applying the limits of section 415(b) of the Internal Revenue Code, 
145.31 	a retirementlimitation in paragraph (a), an annual benefit that is payable in any form other 
145.32 	than a single life annuity and that is subject to section 417(e)(3) of the Internal Revenue 
145.33 	Code mustshall be adjusted to an actuarially equivalent single life annuity that equals, if 
145.34 	the annuity starting date is in a plan year beginning after 2005, the annual amount of the 
146.1 	single life annuity commencing at the same annuity starting date that has the same actuarial 
146.2 	present value as the participant'smember's form of benefit, using whichever of the following 
146.3 	produces the greatest annual amount:
146.4 	(1) the interest rate and the mortality table or other tabular factor specified in the plan 
146.5 	for adjusting benefits in the same form;
146.6 	(2) a 5.5 percent interest rate assumption and the applicable mortality table; or
146.7 	(3) the applicable interest rate under section 417(e)(3) of the Internal Revenue Code and 
146.8 	the applicable mortality table, divided by 1.05.
146.9 	(c) If a member participated in more than one pension plan in which the employer 
146.10 	participates, the benefits under each plan must be reduced proportionately to satisfy the 
146.11 	limitation in paragraph (a).

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

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

146.28 	Sec. 7. Minnesota Statutes 2016, section 356.635, is amended by adding a subdivision to 
146.29 	read:
146.30 		Subd. 13.Correction of errors. The executive director of each plan may correct an 
146.31 	operational, demographic, employer eligibility, or plan document error as the executive 
147.1 	director deems necessary or appropriate to preserve and protect the plan's tax qualification 
147.2 	under section 401(a) of the Internal Revenue Code, including as provided in the Internal 
147.3 	Revenue Service's Employee Plans Compliance Resolution System (EPCRS) or any successor 
147.4 	thereto. To the extent deemed necessary by the executive director to implement correction, 
147.5 	the executive director may:
147.6 	(1) make distributions;
147.7 	(2) transfer assets; or
147.8 	(3) recover an overpayment by reducing future benefit payments or designating 
147.9 	appropriate revenue or source of funding that will restore to the plan the amount of the 
147.10 	overpayment.

147.11 	Sec. 8. Minnesota Statutes 2016, section 356.96, subdivision 1, is amended to read:
147.12 		Subdivision 1.Definitions. (a) Unless the language or context clearly indicates that a 
147.13 	different meaning is intended, for the purpose of this section, the terms in paragraphs (b) 
147.14 	to (e)this subdivision have the meanings given them.
147.15 	(b) "Chief administrative officer""Executive director" means the executive director of 
147.16 	a covered pension plan or the executive director's designee or representative.
147.17 	(c) "Covered pension plan" means a plan enumerated in section 356.20, subdivision 2, 
147.18 	clauses (1) to (4), (8), and (11) to (14), but does not mean the deferred compensation plan 
147.19 	administered under sections 352.965 and 352.97 or to the postretirement health care savings 
147.20 	plan administered under section 352.98.
147.21 	(d) "Governing board" means the Board of Trustees of the Public Employees Retirement 
147.22 	Association, the Board of Trustees of the Teachers Retirement Association, or the Board 
147.23 	of Directors of the Minnesota State Retirement System.
147.24 	(e) "Person" includesmeans an active, retired, deferred, or nonvested inactive participant 
147.25 	in a covered pension plan or a beneficiary of a participant, or an individual who has applied 
147.26 	to be a participant or who is or may be a survivor of a participant, or the representative of 
147.27 	a state agency or other governmental unit that employs active participants in a covered 
147.28 	pension plan.
147.29 	(f) "Petitioner" means a person who has filed a petition for review of an executive 
147.30 	director's determination under this section.

148.1 	Sec. 9. Minnesota Statutes 2016, section 356.96, subdivision 2, is amended to read:
148.2 		Subd. 2.Right to review appeal to executive director; determination. A determination 
148.3 	made by the chief administrative officerperson may appeal a decision by the staff of a 
148.4 	covered pension plan regarding athe person's eligibility, benefits, or other rights under the 
148.5 	plan with which the person does not agree to the executive director of the plan. The appeal 
148.6 	must be in writing and be delivered to the executive director no later than 60 days after the 
148.7 	date of the written notice of the staff decision. The executive director may overturn, modify, 
148.8 	or affirm the staff's decision. The executive director's determination is subject to review 
148.9 	under this section.

148.10 	Sec. 10. Minnesota Statutes 2016, section 356.96, subdivision 3, is amended to read:
148.11 		Subd. 3.Notice of determination. If the applicable chief administrative officer denies 
148.12 	an application or a written request, modifies a benefit, or terminates a benefit of a person 
148.13 	claiming a right or potential rights under a covered pension plan, the chief administrative 
148.14 	officer shall notify that person through a written notice containing: The executive director 
148.15 	shall issue a written notice of determination to the person who files an appeal under 
148.16 	subdivision 2. The notice of determination must be delivered by certified mail to the address 
148.17 	to which the most recent benefit payment was sent or, if that address is that of a financial 
148.18 	institution, to the last known address of the person. The notice of determination shall include 
148.19 	the following:
148.20 	(1) a statement of the reasons for the determination;
148.21 	(2) a noticestatement that the person may petition the governing board of the covered 
148.22 	pension plan for a review of the determination and that a person's petition for review must 
148.23 	be filed in the administrative office of the covered pension plan withinno later than 60 days 
148.24 	of the receiptafter the date of the written notice of the determination;
148.25 	(3) a statement indicating that a failure to petition for review within 60 days precludes 
148.26 	the person from contesting in any otherfurther administrative or judicial review or court 
148.27 	procedure the issues determined by the chief administrative officer of the executive director's 
148.28 	determination;
148.29 	(4) a statement indicating that all relevant materials, documents, affidavits, and other 
148.30 	records that the person wishes to be reviewed in support of the petition and a list of any 
148.31 	witnesses who will testify before the governing board, along with a summary of the witness' 
148.32 	testimony, must be filed with and received in the administrative office of the covered pension 
148.33 	plan at least 15 days before the date of the hearing under subdivision 10 or as directed by 
149.1 	the administrative law judge who conducts a fact-finding conference under subdivision 7, 
149.2 	paragraph (b), or a contested case hearing under subdivision 12, paragraph (b); and
149.3 	(5) a summary of this section, including all filing requirements and deadlines.; and
149.4 	(6) the statement required under subdivision 4, paragraph (a), if applicable.

149.5 	Sec. 11. Minnesota Statutes 2016, section 356.96, subdivision 4, is amended to read:
149.6 		Subd. 4.Termination of benefits. (a) If a covered pension plan decides tothe executive 
149.7 	director's determination will terminate a benefit that is being paid to a person, before 
149.8 	terminating the benefit, the chief administrative officer must, in addition to the other 
149.9 	procedures prescribed in this section, provide the individual with written notice of the 
149.10 	pending benefit termination by certified mail. The notice must explain the reason for the 
149.11 	pending benefit termination. The person must be given anthe notice of determination must 
149.12 	also state that the person has the opportunity to explain, in writing, in person, by telephone, 
149.13 	or by e-mail, the reasons that the benefit should not be terminated.
149.14 	(b) If the chief administrative officer is unable to contact the person andnotice of 
149.15 	determination is returned as undeliverable and the person cannot be reached by any other 
149.16 	reasonable means of communication and the executive director determines that a failure to 
149.17 	terminate the benefit will result in unauthorized payment by a covered pension plan, the 
149.18 	chief administrative officerexecutive director may terminate the benefit immediately upon 
149.19 	mailing a written notice containing the information required by subdivision 3 to the address 
149.20 	to which the most recent benefit payment was sent and, if that address is that of a financial 
149.21 	institution, to the last known address of the person.

149.22 	Sec. 12. Minnesota Statutes 2016, section 356.96, subdivision 5, is amended to read:
149.23 		Subd. 5.Petition for review. (a) Upon receipt of the notice of determination required 
149.24 	in subdivision 3, a person who claims a right under subdivision 2 may petition the governing 
149.25 	board of the covered pension plan for a review of that decision by the governing board of 
149.26 	the covered pension plan the executive director's determination.
149.27 	(b) A petition under this section must be sent to the chief administrative officer by mail 
149.28 	and must be postmarkedThe petitioner must file the petition for review with the 
149.29 	administrative office of the covered pension plan no later than 60 days after the person 
149.30 	receiveddate of the notice of determination required by subdivision 3. Filing of the petition 
149.31 	is effective upon mailing or personal delivery. The petition must include the person's
149.32 	petitioner's statement of the reason or reasons that the person believes the decision of the 
150.1 	chief administrative officerdetermination of the executive director should be reversed or 
150.2 	modified. The petition may include all documentation and written materials that the petitioner 
150.3 	deems to be relevant. In developing a record for review by the board when a decision is 
150.4 	appealed, the chief administrative officer may direct that the applicant participate in a 
150.5 	fact-finding session conducted by an administrative law judge assigned by the Office of 
150.6 	Administrative Hearings and, as applicable, participate in a vocational assessment conducted 
150.7 	by a qualified rehabilitation counselor on contract with the applicable retirement system.

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

150.13 	Sec. 14. Minnesota Statutes 2016, section 356.96, subdivision 7, is amended to read:
150.14 		Subd. 7.Notice of hearing; fact-finding; filing and timing requirements. (a) After 
150.15 	receiving a petition, the chief administrative officerexecutive director must schedule a 
150.16 	timelyhearing to review of the petition before the governing board of the covered pension 
150.17 	plan or the executive director may defer the scheduling of a hearing until after a fact-finding 
150.18 	conference under paragraph (b). The review must be scheduled to take into consideration 
150.19 	any necessary accommodations to allow the petitioner to participate in the governing board's 
150.20 	review.
150.21 	(b) The executive director may direct the petitioner to participate in a fact-finding 
150.22 	conference conducted by an administrative law judge assigned by the Office of 
150.23 	Administrative Hearings. The fact-finding conference is an informal proceeding not subject 
150.24 	to Minnesota Rules, chapter 1400, except that Minnesota Rules, part 1400.7300, shall govern 
150.25 	the admissibility of evidence and Minnesota Rules, part 1400.8603, shall govern how the 
150.26 	fact-finding conference is conducted. The administrative law judge must issue a report and 
150.27 	a recommendation to the governing board.
150.28 	(c) If the petitioner's claim relates to disability benefits, the executive director may direct 
150.29 	the petitioner to participate in a vocational assessment conducted by a qualified rehabilitation 
150.30 	counselor under contract with the covered pension plan. The counselor must issue a report 
150.31 	regarding the assessment to the governing board.
150.32 	(b)(d) Not less than 30 calendar days before the date scheduled for the hearing date
150.33 	before the governing board, the chief administrative officerexecutive director must provide 
151.1 	by mail tonotify the petitioner an acknowledgment of the receipt of the person's petition 
151.2 	and a follow-up notice of the time and place of the meeting at which the governing board 
151.3 	is scheduled to consider the petition andconduct the hearing. If there has been no fact-finding 
151.4 	conference under paragraph (b), not less than 15 days before the date scheduled for the 
151.5 	hearing, the petitioner and the executive director must provide a copyto the governing board 
151.6 	and the other party copies of all relevant documents,documentary evidence, summaries, 
151.7 	and recommendations assembled by or on behalf of the plan administration to be considered 
151.8 	by the governing board that will be presented and a list of witnesses who will testify, along 
151.9 	with a summary of their testimony.
151.10 	(c) All documents and materials that the petitioner wishes to be part of the record for 
151.11 	review must be filed with the chief administrative officer and must be received in the offices 
151.12 	of the covered pension plan at least 15 days before the date of the meeting at which the 
151.13 	petition is scheduled to be heard.
151.14 	(d) A(e) The petitioner may request a continuancepostponement of athe date scheduled 
151.15 	for the hearing if the request is received by the chief administrative officer withinbefore 
151.16 	the governing board within a reasonable time, but no later than ten calendar days ofbefore 
151.17 	the scheduled hearing date of the applicable board meeting. The chief administrative officer 
151.18 	must reschedule the review within a reasonable time. Only one continuance may be granted 
151.19 	to any petitioner. A petitioner shall be granted only one postponement unless the applicable 
151.20 	covered pension plan agrees to additional postponements.

151.21 	Sec. 15. Minnesota Statutes 2016, section 356.96, subdivision 8, is amended to read:
151.22 		Subd. 8.Record for review. (a) All evidence, including all records, documents, and 
151.23 	affidavits in the possession of the covered pension plan of which the covered pension plan 
151.24 	desires to avail itself and be considered by the governing board, and all evidence which the 
151.25 	petitioner wishes to present to the governing board, including any evidence which would 
151.26 	otherwise be classified by law as "private," must be made part of the hearing record.
151.27 	(b) The chief administrative officerexecutive director must provide a copy of the record 
151.28 	to each member of the governing board at least sevenfive days before the scheduled hearing 
151.29 	date.
151.30 	(c) Any additional document, affidavit, or other relevant information that the petitioner 
151.31 	requests be part of the record may be admitted with the consent of the governing board. If 
151.32 	a fact-finding conference under subdivision 7, paragraph (b), is not conducted, the record 
151.33 	is limited to those materials provided to the petitioner in accordance with subdivision 7, 
151.34 	paragraph (d), those filed by the petitioner with the covered pension plan in a timely manner 
152.1 	in accordance with subdivision 7, paragraph (e), any vocational assessment report under 
152.2 	subdivision 7, paragraph (c), and any testimony at the hearing before the governing board. 
152.3 	Any additional evidence may be placed in the record pursuant to subdivision 10, paragraph 
152.4 	(b).
152.5 	(d) If a fact-finding conference under subdivision 7, paragraph (b), or a contested case 
152.6 	hearing under subdivision 12, paragraph (b), is conducted, the record before the governing 
152.7 	board must be limited to the following:
152.8 	(1) the record from the Office of Administrative Hearings;
152.9 	(2) seven-page submissions by the petitioner and a representative of the covered pension 
152.10 	plan commenting on the administrative law judge's recommendation; and
152.11 	(3) any vocational assessment report under subdivision 7, paragraph (c).

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

152.20 	Sec. 17. Minnesota Statutes 2016, section 356.96, subdivision 10, is amended to read:
152.21 		Subd. 10.Board hearing. (a) The governing board shall hold a timely hearing on a 
152.22 	petition for review as part of a regularly scheduled board meeting, or as part of a special 
152.23 	meeting if so scheduled. All governing board members who participate in the 
152.24 	decision-making process must be familiar with the record. The governing board shall make 
152.25 	its decision on a petition solely on the record as submitted and on the proceedings of the 
152.26 	hearing.
152.27 	(b) At the hearing, the petitioner, the petitioner's attorney, and the chief administrative 
152.28 	officerrepresentative, if any, the executive director, and a representative of the covered 
152.29 	pension plan who does not also serve as the governing board's legal advisor during the 
152.30 	board's decision-making process may state and discuss with the governing board their 
152.31 	positions with respect to the petition. If no fact-finding conference under subdivision 7, 
152.32 	paragraph (b), or contested case hearing under subdivision 12, paragraph (b), was conducted, 
153.1 	additional evidence may be received in the form of testimony from previously disclosed 
153.2 	witnesses. The governing board may allow further documentation to be placed in the record 
153.3 	at the board meeting only with the agreement of both the chief administrative officer
153.4 	executive director and the petitioner. The chief administrative officerexecutive director 
153.5 	may not otherwise participate in the board's decision-making process.
153.6 	(b) When a petition presents a contested issue of law, an assistant attorney general may 
153.7 	participate and may argue on behalf of the legal position taken by the chief administrative 
153.8 	officer if that assistant attorney general does not also serve as the governing board's legal 
153.9 	advisor during the board's decision-making process.
153.10 	(c) A motion by a board member, supported by a summary of the relevant facts, 
153.11 	conclusions and reasons, as properly amended and approved by a majority of the governing 
153.12 	board, constitutes the board's final decision. A verbatim statement of the board's final 
153.13 	decision must be served upon the petitioner. If the decision is contrary to the petitioner's 
153.14 	desired outcome, the notice shall inform the petitioner of the appeal rights set forth in 
153.15 	subdivision 13.
153.16 	(d)(c) If a petitioner who received timely notice of a scheduled hearing fails to appear, 
153.17 	the governing board may nevertheless hear the petition and issue a decision.
153.18 	(d) The governing board's decision shall be made upon a motion by a board member 
153.19 	and approval by a majority of the governing board. The governing board must issue its 
153.20 	decision as a written order containing findings of fact, conclusions of law, and the board's 
153.21 	decision no later than 30 days after the hearing. If the decision is contrary to the petitioner's 
153.22 	desired outcome, the notice must inform the petitioner of the appeal rights set forth in 
153.23 	subdivision 13.

153.24 	Sec. 18. Minnesota Statutes 2016, section 356.96, subdivision 11, is amended to read:
153.25 		Subd. 11.Disability medical issues. (a) If a person petitions the governing boardthe 
153.26 	petitioner seeks to reverse or modify a determination which foundby the executive director 
153.27 	that there exists nowas insufficient medical data supportingto support an application for 
153.28 	disability benefits, the governing board may reverse that determination only if there is in 
153.29 	fact medical evidence supporting the application. The governing board has the discretion 
153.30 	to resubmit a disability benefit application at any time to a medical advisor for 
153.31 	reconsideration, and the resubmission may include an instruction that further medical 
153.32 	examinations be obtained.
154.1 	(b) The governing board may make a determination contrary to the recommendation of 
154.2 	the medical advisor only if there is expert medical evidence in the record to support its 
154.3 	contrary decision. If there is no medical evidence contrary to the opinion of the medical 
154.4 	advisor in the record and the medical advisor attests that the decision was made in accordance 
154.5 	with the applicable disability standard, the board must follow the decision of the medical 
154.6 	advisor regarding the cause of the disability.
154.7 	(c) The obligation of the governing board to follow the decision of the medical advisor 
154.8 	under paragraph (b) does not apply to instances when the governing board makes a 
154.9 	determination different from the recommendation of the medical advisor on issues that do 
154.10 	not involve medical issues.

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

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

154.29 	Sec. 21.  REPEALER.
 154.30 	Minnesota Statutes 2016, sections 356.611, subdivisions 3, 3a, 4, and 5; and 356.96, 
154.31 	subdivisions 14 and 15, are repealed.

155.1 	Sec. 22. EFFECTIVE DATE.
 155.2 	Sections 1 to 21 are effective June 30, 2018.

155.3 	ARTICLE 14
155.4 	VOLUNTEER FIREFIGHTER RELIEF ASSOCIATIONS MODIFICATIONS

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

159.5 	EFFECTIVE DATE. This section is effective January 1, 2019.

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

159.10 	EFFECTIVE DATE. This section is effective January 1, 2019.

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

159.14 	EFFECTIVE DATE. This section is effective January 1, 2019.

159.15 	Sec. 4. Minnesota Statutes 2016, section 424A.001, subdivision 3, is amended to read:
159.16 		Subd. 3.Municipality. "Municipality" means a municipality city or township which 
159.17 	has established a fire department with which the relief association is directly associated, or 
159.18 	the municipalities a city or township which have has entered into a contract with the 
159.19 	independent nonprofit firefighting corporation of which the relief association is a subsidiary
159.20 	directly associated, or a city or township that has entered into a contract with a joint powers 
159.21 	entity established under section 471.59 of which the relief association is directly associated.

159.22 	EFFECTIVE DATE. This section is effective January 1, 2019.

159.23 	Sec. 5. Minnesota Statutes 2016, section 424A.001, subdivision 10, is amended to read:
159.24 		Subd. 10.Volunteer firefighter. "Volunteer firefighter" means a person who is a member 
159.25 	of the applicable fire department or the independent nonprofit firefighting corporation and 
159.26 	is eligible for membership in the applicable relief association and:
159.27 	(i) is engaged in providing emergency response services or delivering fire education or 
159.28 	prevention services as a member of a municipal fire department, a joint powers entity fire 
159.29 	department, or an independent nonprofit firefighting corporation;
160.1 	(ii) is trained in or is qualified to provide fire suppression duties or to provide fire 
160.2 	prevention duties under subdivision 8; and
160.3 	(iii) meets any other minimum firefighter and service standards established by the fire 
160.4 	department or the independent nonprofit firefighting corporation or specified in the articles 
160.5 	of incorporation or bylaws of the relief association.

160.6 	EFFECTIVE DATE. This section is effective January 1, 2019.

160.7 	Sec. 6. Minnesota Statutes 2016, section 424A.002, subdivision 1, is amended to read:
160.8 		Subdivision 1.Authorization. A municipal fire department or an independent nonprofit 
160.9 	firefighting corporation, with approval by the applicable municipality or municipalities, 
160.10 	may establish a new volunteer firefighter relief association or may retain an existing volunteer 
160.11 	firefighter relief association. A municipal fire department or an independent nonprofit 
160.12 	firefighting corporation may be associated with only one volunteer firefighter relief 
160.13 	association at one time.

160.14 	EFFECTIVE DATE. This section is effective January 1, 2019.

160.15 	Sec. 7. [424A.003] CERTIFICATION OF SERVICE CREDIT.
160.16 	(a) When a municipal fire department, a joint powers fire department, or an independent 
160.17 	nonprofit firefighting corporation is directly associated with the volunteer firefighters relief 
160.18 	association, the fire chief shall certify annually by March 31 the service credit for the 
160.19 	previous calendar year of each volunteer firefighter rendering active service with the fire 
160.20 	department.
160.21 	(b) The certification shall be made to an officer of the relief association's board of trustees 
160.22 	and to the municipal clerk or clerk-treasurer of the largest municipality in population served 
160.23 	by the associated fire department.
160.24 	(c) The fire chief shall notify each volunteer firefighter rendering active service with 
160.25 	the fire department of the amount of service credit rendered by the firefighter for the previous 
160.26 	calendar year. The service credit notification and a description of the process and deadlines 
160.27 	for the firefighter to challenge the fire chief's determination of service credit must be provided 
160.28 	to the firefighter 60 days prior to its certification to the relief association and municipality. 
160.29 	If the service credit amount is challenged, the fire chief shall accept and consider any 
160.30 	additional pertinent information and shall make a final determination of service credit.
160.31 	(d) The service credit certification must be expressed as the number of completed months 
160.32 	of the previous year during which an active volunteer firefighter rendered at least the 
161.1 	minimum level of duties as specified and required by the fire department under the rules, 
161.2 	regulations, and policies applicable to the fire department. No more than one year of service 
161.3 	credit may be certified for a calendar year.
161.4 	(e) If a volunteer firefighter who is a member of the relief association leaves active 
161.5 	firefighting service to render active military service that is required to be governed by the 
161.6 	federal Uniformed Services Employment and Reemployment Rights Act, as amended, the 
161.7 	firefighter must be certified as providing service credit for the period of the military service, 
161.8 	up to the applicable limit of the federal Uniformed Services Employment and Reemployment 
161.9 	Rights Act. If the volunteer firefighter does not return from the military service in compliance 
161.10 	with the federal Uniformed Services Employment and Reemployment Rights Act, the service 
161.11 	credits applicable to that military service credit period are forfeited and canceled at the end 
161.12 	of the calendar year in which the time limit set by federal law occurs.

161.13 	EFFECTIVE DATE. This section is effective January 1, 2019.

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

161.18 	EFFECTIVE DATE. This section is effective January 1, 2019.

161.19 	Sec. 9. Minnesota Statutes 2016, section 424A.01, is amended by adding a subdivision to 
161.20 	read:
161.21 		Subd. 4a.Prohibition on receipt of concurrent service credit. No firefighter may be 
161.22 	credited with service credit in a volunteer firefighters relief association for the same hours 
161.23 	of service for which coverage is already provided in a fund operated pursuant to chapter 
161.24 	353.

161.25 	EFFECTIVE DATE. This section is effective January 1, 2019, and applies to service 
161.26 	rendered on or after that date.

161.27 	Sec. 10. Minnesota Statutes 2016, section 424A.01, subdivision 5, is amended to read:
161.28 		Subd. 5.Fire prevention personnel. (a) If the fire department is a municipal department 
161.29 	and the applicable municipality approves, or if the fire department is an independent nonprofit 
161.30 	firefighting corporation and the contracting municipality or municipalities approve, the fire 
162.1 	department may employ or otherwise utilize the services of persons as volunteer firefighters 
162.2 	to perform fire prevention duties and to supervise fire prevention activities.
162.3 	(b) Personnel serving in fire prevention positions are eligible to be members of the 
162.4 	applicable volunteer firefighter relief association and to qualify for service pension or other 
162.5 	benefit coverage of the relief association on the same basis as fire department personnel 
162.6 	who perform fire suppression duties.
162.7 	(c) Personnel serving in fire prevention positions also are eligible to receive any other 
162.8 	benefits under the applicable law or practice for services on the same basis as personnel 
162.9 	who are employed to perform fire suppression duties.

162.10 	EFFECTIVE DATE. This section is effective January 1, 2019.

162.11 	Sec. 11. Minnesota Statutes 2016, section 424A.01, is amended by adding a subdivision 
162.12 	to read:
162.13 		Subd. 5a.Volunteer emergency medical personnel. Volunteer emergency medical 
162.14 	personnel are eligible to be members of the applicable volunteer firefighters relief association 
162.15 	and to qualify for service pension or other benefit coverage of the relief association on the 
162.16 	same basis as fire department personnel who perform or supervise fire suppression or fire 
162.17 	prevention duties if:
162.18 	(1) the fire department employs or otherwise uses the services of persons solely as 
162.19 	volunteer emergency medical personnel to perform emergency medical response duties or 
162.20 	supervise emergency medical response activities;
162.21 	(2) the bylaws of the relief association authorize the eligibility; and
162.22 	(3) the eligibility is approved by:
162.23 	(i) the municipality, if the fire department is a municipal department;
162.24 	(ii) the joint powers board, if the fire department is a joint powers entity; or
162.25 	(iii) the contracting municipality or municipalities, if the fire department is an independent 
162.26 	nonprofit firefighting corporation.

162.27 	EFFECTIVE DATE. This section is effective January 1, 2019, and applies to service 
162.28 	rendered on or after that date.

163.1 	Sec. 12. Minnesota Statutes 2016, section 424A.01, subdivision 6, is amended to read:
163.2 		Subd. 6.Return to active firefighting after break in service. (a) This subdivision 
163.3 	governs the service pension calculation requirements of a firefighter who returns to active 
163.4 	service after a break in service and applies to all breaks in service, except that the resumption 
163.5 	service requirements of this subdivision do not apply to leaves of absence made available 
163.6 	by federal statute, such as the Family Medical Leave Act, United States Code, title 29, 
163.7 	section 2691, and the Uniformed Services Employment and Reemployment Rights Act, 
163.8 	United States Code, title 38, section 4301, and do not apply to leaves of absence made 
163.9 	available by state statute, such as the Parental Leave Act, section 181.941; the Leave for 
163.10 	Organ Donation Act, section 181.9456; the Leave for Civil Air Patrol Service Act, section 
163.11 	181.946; the Leave for Immediate Family Members of Military Personnel Injured or Killed 
163.12 	in Active Service Act, section 181.947; or the Protection of Jurors' Employment Act, section 
163.13 	593.50.
163.14 	(b)(1) If a firefighter who has ceased to perform or supervise fire suppression and fire 
163.15 	prevention duties for at least 60 days resumes performing active firefighting with the fire 
163.16 	department associated with the relief association, if the bylaws of the relief association so 
163.17 	permit, the firefighter may again become an active member of the relief association. A 
163.18 	firefighter who returns to active service and membership is subject to the service pension 
163.19 	calculation requirements under this section.
163.20 	(2) A firefighter who has been granted an approved leave of absence not exceeding one 
163.21 	year by the fire department or by the relief association is exempt from the minimum period 
163.22 	of resumption service requirement of this section.
163.23 	(3) A person who has a break in service not exceeding one year but has not been granted 
163.24 	an approved leave of absence and who has not received a service pension or disability benefit 
163.25 	may be made exempt from the minimum period of resumption service requirement of this 
163.26 	section by the relief association bylaws.
163.27 	(4) If the bylaws so provide, a firefighter who returns to active relief association 
163.28 	membership under this paragraph may continue to collect a monthly service pension, 
163.29 	notwithstanding the service pension eligibility requirements under chapter 424A.
163.30 	(c) If a former firefighter who has received a service pension or disability benefit returns 
163.31 	to active relief association membership under paragraph (b), the firefighter may qualify for 
163.32 	the receipt of a service pension from the relief association for the resumption service period 
163.33 	if the firefighter meets the service requirements of section 424A.016, subdivision 3, or 
164.1 	424A.02, subdivision 2. No firefighter may be paid a service pension more than once for 
164.2 	the same period of service.
164.3 	(d) If a former firefighter who has not received a service pension or disability benefit 
164.4 	returns to active relief association membership under paragraph (b), the firefighter may 
164.5 	qualify for the receipt of a service pension from the relief association for the original and 
164.6 	resumption service periods if the firefighter meets the service requirements of section 
164.7 	424A.016, subdivision 3, or 424A.02, subdivision 2, based on the original and resumption 
164.8 	years of service credit.
164.9 	(e) A firefighter who returns to active lump-sum relief association membership under 
164.10 	paragraph (b) and who qualifies for a service pension under paragraph (c) must have, upon 
164.11 	a subsequent cessation of duties, any service pension for the resumption service period 
164.12 	calculated as a separate benefit. If a lump-sum service pension had been paid to the firefighter 
164.13 	upon the firefighter's previous cessation of duties, a second lump-sum service pension for 
164.14 	the resumption service period must be calculated by applying the service pension amount 
164.15 	in effect on the date of the firefighter's termination of the resumption service for all years 
164.16 	of the resumption service.
164.17 	(f) A firefighter who had not been paid a lump-sum service pension returns to active 
164.18 	relief association membership under paragraph (b), who did not meet the minimum period 
164.19 	of resumption service requirement specified in the relief association's bylaws, but who does 
164.20 	meet the minimum service requirement of section 424A.02, subdivision 2, based on the 
164.21 	firefighter's original and resumption years of active service, must have, upon a subsequent 
164.22 	cessation of duties, a service pension for the original and resumption service periods 
164.23 	calculated by applying the service pension amount in effect on the date of the firefighter's 
164.24 	termination of the resumption service, or, if the bylaws so provide, based on the service 
164.25 	pension amount in effect on the date of the firefighter's previous cessation of duties. The 
164.26 	service pension for a firefighter who returns to active lump-sum relief association membership 
164.27 	under this paragraph, but who had met the minimum period of resumption service requirement 
164.28 	specified in the relief association's bylaws, must be calculated by applying the service 
164.29 	pension amount in effect on the date of the firefighter's termination of the resumption service.
164.30 	(g) If a firefighter receiving a monthly benefit service pension returns to active monthly 
164.31 	benefit relief association membership under paragraph (b), and if the relief association 
164.32 	bylaws do not allow for the firefighter to continue collecting a monthly service pension, 
164.33 	any monthly benefit service pension payable to the firefighter is suspended as of the first 
164.34 	day of the month next following the date on which the firefighter returns to active 
164.35 	membership. If the firefighter was receiving a monthly benefit service pension, and qualifies 
165.1 	for a service pension under paragraph (c), the firefighter is entitled to an additional monthly 
165.2 	benefit service pension upon a subsequent cessation of duties calculated based on the 
165.3 	resumption service credit and the service pension accrual amount in effect on the date of 
165.4 	the termination of the resumption service. A suspended initial service pension resumes as 
165.5 	of the first of the month next following the termination of the resumption service. If the 
165.6 	firefighter was not receiving a monthly benefit service pension and meets the minimum 
165.7 	service requirement of section 424A.02, subdivision 2, a service pension must be calculated 
165.8 	by applying the service pension amount in effect on the date of the firefighter's termination 
165.9 	of the resumption service for all years of service credit.
165.10 	(h) A firefighter who was not receiving a monthly benefit service pension returns to 
165.11 	active relief association membership under paragraph (b), who did not meet the minimum 
165.12 	period of resumption service requirement specified in the relief association's bylaws, but 
165.13 	who does meet the minimum service requirement of section 424A.02, subdivision 2, based 
165.14 	on the firefighter's original and resumption years of active service, must have, upon a 
165.15 	subsequent cessation of duties, a service pension for the original and resumption service 
165.16 	periods calculated by applying the service pension amount in effect on the date of the 
165.17 	firefighter's termination of the resumption service, or, if the bylaws so provide, based on 
165.18 	the service pension amount in effect on the date of the firefighter's previous cessation of 
165.19 	duties. The service pension for a firefighter who returns to active relief association 
165.20 	membership under this paragraph, but who had met the minimum period of resumption 
165.21 	service requirement specified in the relief association's bylaws, must be calculated by 
165.22 	applying the service pension amount in effect on the date of the firefighter's termination of 
165.23 	the resumption service.
165.24 	(i) For defined contribution plans, a firefighter who returns to active relief association 
165.25 	membership under paragraph (b) and who qualifies for a service pension under paragraph 
165.26 	(c) or (d) must have, upon a subsequent cessation of duties, any service pension for the 
165.27 	resumption service period calculated as a separate benefit. If a service pension had been 
165.28 	paid to the firefighter upon the firefighter's previous cessation of duties, and if the firefighter 
165.29 	meets the minimum service requirement of section 424A.016, subdivision 3, based on the 
165.30 	resumption years of service, a second service pension for the resumption service period 
165.31 	must be calculated to include allocations credited to the firefighter's individual account 
165.32 	during the resumption period of service and deductions for administrative expenses, if 
165.33 	applicable.
165.34 	(j) For defined contribution plans, if a firefighter who had not been paid a service pension 
165.35 	returns to active relief association membership under paragraph (b), and who meets the 
166.1 	minimum service requirement of section 424A.016, subdivision 3, based on the firefighter's 
166.2 	original and resumption years of service, must have, upon a subsequent cessation of duties, 
166.3 	a service pension for the original and resumption service periods calculated to include 
166.4 	allocations credited to the firefighter's individual account during the original and resumption 
166.5 	periods of service and deductions for administrative expenses, if applicable, less any amounts 
166.6 	previously forfeited under section 424A.016, subdivision 4.

166.7 	EFFECTIVE DATE. This section is effective January 1, 2019.

166.8 	Sec. 13. Minnesota Statutes 2016, section 424A.015, subdivision 1, is amended to read:
166.9 		Subdivision 1.Separation from active service; exception. (a) No service pension is 
166.10 	payable to a person while the person remains an active member of the respective fire 
166.11 	department, and a person who is receiving a service pension is not entitled to receive any 
166.12 	other benefits from the special fund of the relief association.
166.13 	(b) No relief association as defined in section 424A.001, subdivision 4, may pay a service 
166.14 	pension or disability benefit to a former member of the relief association if that person has 
166.15 	not separated from active service with the fire department to which the relief association is 
166.16 	directly associated, unless:
166.17 	(1) the person discontinues volunteer firefighter duties with the municipality or the 
166.18 	independent nonprofit firefighting corporation, whichever applies, fire department and 
166.19 	performs duties within the municipal fire department or corporation on a full-time basis;
166.20 	(2) the governing body of the municipality or, of the independent nonprofit firefighting 
166.21 	corporation, or of the joint powers entity has filed its determination with the board of trustees 
166.22 	of the relief association that the person's experience with and service to the fire department 
166.23 	in that person's full-time capacity would be difficult to replace; and
166.24 	(3) the bylaws of the relief association were amended to provide for the payment of a 
166.25 	service pension or disability benefit for such full-time employees.

166.26 	EFFECTIVE DATE. This section is effective January 1, 2019.

166.27 	Sec. 14. Minnesota Statutes 2016, section 424A.015, is amended by adding a subdivision 
166.28 	to read:
166.29 		Subd. 7.Combined service pensions. (a) A volunteer firefighter with credit for service 
166.30 	as an active firefighter in more than one volunteer firefighters relief association is entitled 
166.31 	to a prorated service pension from each relief association if:
167.1 	(1) the articles of incorporation or bylaws of the relief associations provide;
167.2 	(2) the applicable requirements of paragraphs (b) and (c) are met; and
167.3 	(3) the volunteer firefighter otherwise qualifies.
167.4 	(b) A volunteer firefighter receiving a prorated service pension under this subdivision 
167.5 	must have a total combined amount of service credit from the two or more relief associations 
167.6 	of ten years or more, unless the bylaws of every affected relief association specify less than 
167.7 	a ten-year service vesting requirement, in which case, the total amount of required service 
167.8 	credit is the longest service vesting requirement of the relief associations. The member must 
167.9 	have one year or more of service credit in each relief association. The prorated service 
167.10 	pension must be based on:
167.11 	(1) for defined benefit relief associations, the service pension amount in effect for the 
167.12 	relief association on the date on which active volunteer firefighting services covered by that 
167.13 	relief association terminate; and
167.14 	(2) for defined contribution relief associations, the member's individual account balance 
167.15 	on the date on which active volunteer firefighting services covered by that relief association 
167.16 	terminate.
167.17 	(c) To receive a prorated service pension under this subdivision, the firefighter must 
167.18 	become a member of the second or succeeding association and must give notice of 
167.19 	membership to the prior association within two years of the date of termination of active 
167.20 	service with the prior association. The second or subsequent relief association secretary 
167.21 	must certify the notice.

167.22 	EFFECTIVE DATE. This section is effective January 1, 2019.

167.23 	Sec. 15. Minnesota Statutes 2016, section 424A.016, subdivision 2, is amended to read:
167.24 		Subd. 2.Defined contribution service pension eligibility. (a) A relief association, 
167.25 	when its articles of incorporation or bylaws so provide, may pay out of the assets of its 
167.26 	special fund a defined contribution service pension to each of its members who:
167.27 	(1) separates from active service with the fire department;
167.28 	(2) reaches age 50;
167.29 	(3) completes at least five years of active service as an active member of the municipal
167.30 	fire department to which the relief association is associated;
168.1 	(4) completes at least five years of active membership with the relief association before 
168.2 	separation from active service; and
168.3 	(5) complies with any additional conditions as to age, service, and membership that are 
168.4 	prescribed by the bylaws of the relief association.
168.5 	(b) In the case of a member who has completed at least five years of active service as 
168.6 	an active member of the fire department to which the relief association is associated on the 
168.7 	date that the relief association is established and incorporated, the requirement that the 
168.8 	member complete at least five years of active membership with the relief association before 
168.9 	separation from active service may be waived by the board of trustees of the relief association 
168.10 	if the member completes at least five years of inactive membership with the relief association 
168.11 	before the date of the payment of the service pension. During the period of inactive 
168.12 	membership, the member is not entitled to receive any disability benefit coverage, is not 
168.13 	entitled to receive additional individual account allocation of fire state aid or municipal 
168.14 	contribution towards a service pension, and is considered to have the status of a person 
168.15 	entitled to a deferred service pension.
168.16 	(c) The service pension earned by a volunteer under this chapter and the articles of 
168.17 	incorporation and bylaws of the relief association may be paid whether or not the municipality 
168.18 	or independent nonprofit firefighting corporation to which the relief association is associated 
168.19 	qualifies for the receipt of fire state aid under chapter 69.

168.20 	EFFECTIVE DATE. This section is effective January 1, 2019.

168.21 	Sec. 16. Minnesota Statutes 2016, section 424A.02, subdivision 1, is amended to read:
168.22 		Subdivision 1.Authorization. (a) A defined benefit relief association, when its articles 
168.23 	of incorporation or bylaws so provide, may pay out of the assets of its special fund a defined 
168.24 	benefit service pension to each of its members who: (1) separates from active service with 
168.25 	the fire department; (2) reaches age 50; (3) completes at least five years of active service 
168.26 	as an active member of the municipal fire department to which the relief association is 
168.27 	associated; (4) completes at least five years of active membership with the relief association 
168.28 	before separation from active service; and (5) complies with any additional conditions as 
168.29 	to age, service, and membership that are prescribed by the bylaws of the relief association. 
168.30 	A service pension computed under this section may be prorated monthly for fractional years 
168.31 	of service as the bylaws or articles of incorporation of the relief association so provide. The 
168.32 	bylaws or articles of incorporation may define a "month," but the definition must require a 
168.33 	calendar month to have at least 16 days of active service. If the bylaws or articles of 
168.34 	incorporation do not define a "month," a "month" is a completed calendar month of active 
169.1 	service measured from the member's date of entry to the same date in the subsequent month. 
169.2 	The service pension earned by a volunteer firefighter under this chapter and the articles of 
169.3 	incorporation and bylaws of the volunteer firefighters relief association may be paid whether 
169.4 	or not the municipality or independent nonprofit firefighting corporation to which the relief 
169.5 	association is associated qualifies for the receipt of fire state aid under chapter 69.
169.6 	(b) In the case of a member who has completed at least five years of active service as 
169.7 	an active member of the fire department to which the relief association is associated on the 
169.8 	date that the relief association is established and incorporated, the requirement that the 
169.9 	member complete at least five years of active membership with the relief association before 
169.10 	separation from active service may be waived by the board of trustees of the relief association 
169.11 	if the member completes at least five years of inactive membership with the relief association 
169.12 	before the date of the payment of the service pension. During the period of inactive 
169.13 	membership, the member is not entitled to receive disability benefit coverage, is not entitled 
169.14 	to receive additional service credit towards computation of a service pension, and is 
169.15 	considered to have the status of a person entitled to a deferred service pension under 
169.16 	subdivision 7.
169.17 	(c) No municipality or, independent nonprofit firefighting corporation, or joint powers 
169.18 	entity may delegate the power to take final action in setting a service pension or ancillary 
169.19 	benefit amount or level to the board of trustees of the relief association or to approve in 
169.20 	advance a service pension or ancillary benefit amount or level equal to the maximum amount 
169.21 	or level that this chapter would allow rather than a specific dollar amount or level.

169.22 	EFFECTIVE DATE. This section is effective January 1, 2019.

169.23 	Sec. 17. Minnesota Statutes 2016, section 424A.02, subdivision 3a, is amended to read:
169.24 		Subd. 3a.Penalty for paying pension greater than applicable maximum. (a) If a 
169.25 	defined benefit relief association pays a service pension greater than the maximum service 
169.26 	pension associated with the applicable average amount of available financing per active 
169.27 	covered firefighter under the table in subdivision 3, paragraph (c) or (d), whichever applies, 
169.28 	the maximum service pension under subdivision 3, paragraph (f), or the applicable maximum 
169.29 	service pension amount specified in subdivision 3, paragraph (g), whichever is less, the 
169.30 	state auditor shall:
169.31 	(1) disqualify the municipality or the independent nonprofit firefighting corporation 
169.32 	associated with the relief association from receiving fire state aid by making the appropriate 
169.33 	notification to the municipality and the commissioner of revenue, with the disqualification 
169.34 	applicable for the next apportionment and payment of fire state aid; and
170.1 	(2) order the treasurer of the applicable relief association to recover the amount of the 
170.2 	overpaid service pension or pensions from any retired firefighter who received an 
170.3 	overpayment.
170.4 	(b) Fire state aid amounts from disqualified municipalities for the period of 
170.5 	disqualifications under paragraph (a), clause (1), must be credited to the amount of fire 
170.6 	insurance premium tax proceeds available for the next subsequent fire state aid 
170.7 	apportionment.
170.8 	(c) The amount of any overpaid service pension recovered under paragraph (a), clause 
170.9 	(2), must be credited to the amount of fire insurance premium tax proceeds available for 
170.10 	the next subsequent fire state aid apportionment.
170.11 	(d) The determination of the state auditor that a relief association has paid a service 
170.12 	pension greater than the applicable maximum must be made on the basis of the information 
170.13 	filed by the relief association and the municipality with the state auditor under sections 
170.14 	69.011, subdivision 2, and 69.051, subdivision 1 or 1a, whichever applies, and any other 
170.15 	relevant information that comes to the attention of the state auditor. The determination of 
170.16 	the state auditor is final. An aggrieved municipality, relief association, or person may appeal 
170.17 	the determination under section 480A.06.
170.18 	(e) The state auditor may certify, upon learning that a relief association overpaid a service 
170.19 	pension based on an error in the maximum service pension calculation, the municipality or 
170.20 	independent nonprofit firefighting corporation associated with the relief association for fire 
170.21 	state aid if (1) there is evidence that the error occurred in good faith, and (2) the relief 
170.22 	association has initiated recovery of any overpayment amount. Notwithstanding paragraph 
170.23 	(c), all overpayments recovered under this paragraph must be credited to the relief 
170.24 	association's special fund.

170.25 	EFFECTIVE DATE. This section is effective January 1, 2019.

170.26 	Sec. 18. Minnesota Statutes 2016, section 424A.02, subdivision 7, is amended to read:
170.27 		Subd. 7.Deferred service pensions. (a) A member of a defined benefit relief association 
170.28 	is entitled to a deferred service pension if the member separates from active service and 
170.29 	membership and has completed the minimum service and membership requirements in 
170.30 	subdivision 1. The requirement that a member separate from active service and membership 
170.31 	is waived for persons who have discontinued their volunteer firefighter duties and who are 
170.32 	employed on a full-time basis under section 424A.015, subdivision 1.
171.1 	(b) The deferred service pension is payable when the former member reaches at least 
171.2 	age 50, or at least the minimum age specified in the bylaws governing the relief association 
171.3 	if that age is greater than age 50, and when the former member makes a valid written 
171.4 	application.
171.5 	(c) A defined benefit relief association that provides a lump-sum service pension governed 
171.6 	by subdivision 3 may, when its governing bylaws so provide, pay interest on the deferred 
171.7 	lump-sum service pension during the period of deferral. If provided for in the bylaws, interest 
171.8 	must be paid in one of the following manners:
171.9 	(1) at the investment performance rate actually earned on that portion of the assets if the 
171.10 	deferred benefit amount is invested by the relief association in a separate account established 
171.11 	and maintained by the relief association;
171.12 	(2) at the investment performance rate actually earned on that portion of the assets if the 
171.13 	deferred benefit amount is invested in a separate investment vehicle held by the relief 
171.14 	association; or
171.15 	(3) at an interest rate of up to five percent, compounded annually, as set by the board of 
171.16 	trustees.
171.17 	(d) Any change in the interest rate set by the board of trustees under paragraph (c), clause 
171.18 	(3), must be ratified by the governing body of the municipality or joint powers entity served 
171.19 	by the fire department to which the relief association is directly associated, or by the 
171.20 	independent nonprofit firefighting corporation, as applicable.
171.21 	(e) Interest under paragraph (c), clause (3), is payable beginning on the January 1 next 
171.22 	following the date on which the deferred service pension interest rate as set by the board of 
171.23 	trustees was ratified by the governing body of the municipality or joint powers entity served 
171.24 	by the fire department to which the relief association is directly associated, or by the 
171.25 	independent nonprofit firefighting corporation, as applicable.
171.26 	(f) Unless the bylaws of a relief association that has elected to pay interest or additional 
171.27 	investment performance on deferred lump-sum service pensions under paragraph (c) specifies 
171.28 	a different interest or additional investment performance method, including the interest or 
171.29 	additional investment performance period starting date and ending date, the interest or 
171.30 	additional investment performance on a deferred service pension is creditable as follows:
171.31 	(1) for a relief association that has elected to pay interest or additional investment 
171.32 	performance under paragraph (c), clause (1) or (3), beginning on the first day of the month 
171.33 	next following the date on which the member separates from active service and membership 
172.1 	and ending on the last day of the month immediately before the month in which the deferred 
172.2 	member commences receipt of the deferred service pension; or
172.3 	(2) for a relief association that has elected to pay interest or additional investment 
172.4 	performance under paragraph (c), clause (2), beginning on the date that the member separates 
172.5 	from active service and membership and ending on the date that the separate investment 
172.6 	vehicle is valued immediately before the date on which the deferred member commences 
172.7 	receipt of the deferred service pension.
172.8 	(g) For a deferred service pension that is transferred to a separate account established 
172.9 	and maintained by the relief association or separate investment vehicle held by the relief 
172.10 	association, the deferred member bears the full investment risk subsequent to transfer and 
172.11 	in calculating the accrued liability of the volunteer firefighters relief association that pays 
172.12 	a lump-sum service pension, the accrued liability for deferred service pensions is equal to 
172.13 	the separate relief association account balance or the fair market value of the separate 
172.14 	investment vehicle held by the relief association.

172.15 	EFFECTIVE DATE. This section is effective January 1, 2019.

172.16 	Sec. 19. Minnesota Statutes 2016, section 424A.04, subdivision 1, is amended to read:
172.17 		Subdivision 1.Membership. (a) A relief association that is directly associated with a 
172.18 	municipal fire department must be managed by a board of trustees consisting of nine 
172.19 	members. Six trustees must be elected from the membership of the relief association and 
172.20 	three trustees must be drawn from the officials of the municipalities served by the fire 
172.21 	department to which the relief association is directly associated. The bylaws of a relief 
172.22 	association which provides a monthly benefit service pension may provide that one of the 
172.23 	six trustees elected from the relief association membership may be a retired member receiving 
172.24 	a monthly pension who is elected by the membership of the relief association. The three 
172.25 	municipal trustees must be one elected municipal official and one elected or appointed 
172.26 	municipal official who are designated as municipal representatives by the municipal 
172.27 	governing board annually and the chief of the municipal fire department.
172.28 	(b) A relief association that is a subsidiary of an independent nonprofit firefighting 
172.29 	corporation must be managed by a board of trustees consisting of nine members. Six trustees 
172.30 	must be elected from the membership of the relief association, two trustees must be drawn 
172.31 	from the officials of the municipalities served by the fire department to which the relief 
172.32 	association is directly associated, and one trustee must be the fire chief serving with the 
172.33 	independent nonprofit firefighting corporation. The bylaws of a relief association may 
172.34 	provide that one of the six trustees elected from the relief association membership may be 
173.1 	a retired member receiving a monthly pension who is elected by the membership of the 
173.2 	relief association. The two municipal trustees must be elected or appointed municipal 
173.3 	officials, selected as follows:
173.4 	(1) if only one municipality contracts with the independent nonprofit firefighting 
173.5 	corporation, the municipal trustees must be two officials of the contracting municipality 
173.6 	who are designated annually by the governing body of the municipality; or
173.7 	(2) if two or more municipalities contract with the independent nonprofit corporation, 
173.8 	the municipal trustees must be one official from each of the two largest municipalities in 
173.9 	population who are designated annually by the governing bodies of the applicable 
173.10 	municipalities.
173.11 	(c) The municipal trustees for a relief association that is directly associated with a fire 
173.12 	department operated as or by a joint powers entity must be the fire chief of the fire department 
173.13 	and two trustees designated annually by the joint powers board. The municipal trustees for 
173.14 	a relief association that is directly associated with a fire department service area township 
173.15 	must be the fire chief of the fire department and two trustees designated by the township 
173.16 	board.
173.17 	(d) If a relief association lacks the municipal board members provided for in paragraph 
173.18 	(a), (b), or (c) because the fire department is not located in or associated with an organized
173.19 	a municipality, or joint powers entity, or township, the municipal board members must be 
173.20 	the fire chief of the fire department and two board members appointed from the fire 
173.21 	department service area by the board of commissioners of the applicable county.
173.22 	(e) The term of the appointed municipal board members is one year or until the person's 
173.23 	successor is qualified, whichever is later.
173.24 	(f) A municipal trustee under paragraph (a), (b), (c), or (d) has all the rights and duties 
173.25 	accorded to any other trustee, except the right to be an officer of the relief association board 
173.26 	of trustees.
173.27 	(g) A board must have at least three officers, who are a president, a secretary and a 
173.28 	treasurer. These officers must be elected from among the elected trustees by either the full 
173.29 	board of trustees or by the relief association membership, as specified in the bylaws. In no 
173.30 	event may any trustee hold more than one officer position at any one time. The terms of the 
173.31 	elected trustees and of the officers of the board must be specified in the bylaws of the relief 
173.32 	association, but may not exceed three years. If the term of the elected trustees exceeds one 
173.33 	year, the election of the various trustees elected from the membership must be staggered 
173.34 	on as equal a basis as is practicable.

174.1 	EFFECTIVE DATE. This section is effective January 1, 2019.

174.2 	Sec. 20. Minnesota Statutes 2016, section 424A.07, is amended to read:
174.3 	424A.07 NONPROFIT FIREFIGHTING CORPORATIONS; ESTABLISHMENT 
174.4 	OF RELIEF ASSOCIATIONS.
174.5 	Before paying any service pensions or retirement benefits under section 424A.02 or 
174.6 	before becoming entitled to receive any amounts of fire state aid upon transmittal from a 
174.7 	contracting municipality under section 69.031, subdivision 5, a an independent nonprofit 
174.8 	firefighting corporation shall establish a volunteer firefighters relief association governed 
174.9 	by this chapter.

174.10 	EFFECTIVE DATE. This section is effective January 1, 2019.

174.11 	Sec. 21. Minnesota Statutes 2016, section 424A.091, subdivision 3, is amended to read:
174.12 		Subd. 3.Remedy for noncompliance; determination. (a) A municipality in which 
174.13 	there exists a firefighters relief association as specified in subdivision 1 which does not 
174.14 	comply with the applicable provisions of sections 424A.091 to 424A.096 or the provisions 
174.15 	of any applicable special law relating to the funding or financing of the association does 
174.16 	not qualify initially to receive, and is not entitled subsequently to retain, fire state aid under 
174.17 	sections 69.011 to 69.051 until the reason for the disqualification specified by the state 
174.18 	auditor is remedied, whereupon the municipality or relief association, if otherwise qualified, 
174.19 	is entitled to again receive fire state aid for the year occurring immediately subsequent to 
174.20 	the year in which the disqualification is remedied.
174.21 	(b) The state auditor shall determine if a municipality to which a firefighters' relief 
174.22 	association is directly associated or a firefighters relief association fails to comply with the 
174.23 	provisions of sections 424A.091 to 424A.096 or the funding or financing provisions of any 
174.24 	applicable special law based upon the information contained in the annual financial report 
174.25 	of the firefighters relief association required under section 69.051, the actuarial valuation 
174.26 	of the relief association, if applicable, the relief association officers' financial requirements 
174.27 	of the relief association and minimum municipal obligation determination documentation 
174.28 	under section 424A.092, subdivisions 3 and 4; 424A.093, subdivisions 4 and 5; or 424A.094, 
174.29 	subdivision 2, if requested to be filed by the state auditor, the applicable municipal or 
174.30 	independent nonprofit firefighting corporation budget, if requested to be filed by the state 
174.31 	auditor, and any other relevant documents or reports obtained by the state auditor.
175.1 	(c) The municipality or independent nonprofit firefighting corporation and the associated 
175.2 	relief association are not eligible to receive or to retain fire state aid if:
175.3 	(1) the relief association fails to prepare or to file the financial report or financial 
175.4 	statement under section 69.051;
175.5 	(2) the relief association treasurer is not bonded in the manner and in the amount required 
175.6 	by section 69.051, subdivision 2;
175.7 	(3) the relief association officers fail to determine or improperly determine the accrued 
175.8 	liability and the annual accruing liability of the relief association under section 424A.092, 
175.9 	subdivisions 2, 2a, and 3, paragraph (c), clause (2), if applicable;
175.10 	(4) if applicable, the relief association officers fail to obtain and file a required actuarial 
175.11 	valuation or the officers file an actuarial valuation that does not contain the special fund 
175.12 	actuarial liability calculated under the entry age normal actuarial cost method, the special 
175.13 	fund current assets, the special fund unfunded actuarial accrued liability, the special fund 
175.14 	normal cost under the entry age normal actuarial cost method, the amortization requirement 
175.15 	for the special fund unfunded actuarial accrued liability by the applicable target date, a 
175.16 	summary of the applicable benefit plan, a summary of the membership of the relief 
175.17 	association, a summary of the actuarial assumptions used in preparing the valuation, and a 
175.18 	signed statement by the actuary attesting to its results and certifying to the qualifications of 
175.19 	the actuary as an approved actuary under section 356.215, subdivision 1, paragraph (c);
175.20 	(5) the municipality failed to provide a municipal contribution, or the independent 
175.21 	nonprofit firefighting corporation failed to provide a corporate contribution, in the amount 
175.22 	equal to the minimum municipal obligation if the relief association is governed under section 
175.23 	424A.092, or the amount necessary, when added to the fire state aid actually received in 
175.24 	the plan year in question, to at least equal in total the calculated annual financial requirements 
175.25 	of the special fund of the relief association if the relief association is governed under section 
175.26 	424A.093, and, if the municipal or corporate contribution is deficient, the municipality 
175.27 	failed to include the minimum municipal obligation certified under section 424A.092, 
175.28 	subdivision 3, or 424A.093, subdivision 5, in its budget and tax levy or the independent 
175.29 	nonprofit firefighting corporation failed to include the minimum corporate obligation certified 
175.30 	under section 424A.094, subdivision 2, in the corporate budget;
175.31 	(6) the defined benefit relief association did not receive municipal ratification for the 
175.32 	most recent plan amendment when municipal ratification was required under section 424A.02, 
175.33 	subdivision 10; 424A.092, subdivision 6; or 424A.093, subdivision 6;
176.1 	(7) the relief association invested special fund assets in an investment security that is 
176.2 	not authorized under section 424A.095;
176.3 	(8) the relief association had an administrative expense that is not authorized under 
176.4 	section 69.80 or 424A.05, subdivision 3, or the municipality had an expenditure that is not 
176.5 	authorized under section 424A.08;
176.6 	(9) the relief association officers fail to provide a complete and accurate public pension 
176.7 	plan investment portfolio and performance disclosure under section 356.219;
176.8 	(10) the relief association fails to obtain the acknowledgment from a broker of the 
176.9 	statement of investment restrictions under section 356A.06, subdivision 8b;
176.10 	(11) the relief association officers permitted to occur a prohibited transaction under 
176.11 	section 356A.06, subdivision 9, or 424A.04, subdivision 2a, or failed to undertake correction 
176.12 	of a prohibited transaction that did occur; or
176.13 	(12) the relief association pays a defined benefit service pension in an amount that is in 
176.14 	excess of the applicable service pension maximum under section 424A.02, subdivision 3.

176.15 	EFFECTIVE DATE. This section is effective January 1, 2019.

176.16 	Sec. 22. Minnesota Statutes 2016, section 424A.094, subdivision 3, is amended to read:
176.17 		Subd. 3.Authorized pension disbursements. Authorized disbursements of assets of 
176.18 	the special fund of the subsidiary relief association of the independent nonprofit firefighting 
176.19 	corporation shall be governed by the provisions of section 424A.05.

176.20 	EFFECTIVE DATE. This section is effective January 1, 2019.

176.21 	Sec. 23. Minnesota Statutes 2016, section 424A.10, subdivision 1, is amended to read:
176.22 		Subdivision 1. Definitions. For purposes of this section:
176.23 	(1) "qualified recipient" means an individuala volunteer firefighter who receives a 
176.24 	lump-sum distribution of pension or retirement benefits from a volunteer firefighters relief 
176.25 	association or from the voluntary statewide lump-sum volunteer firefighter retirement plan
176.26 	for service that the individual has performed as a volunteer firefighter;
176.27 	(2) "survivor of a deceased active or deferred volunteer firefighter" means the surviving 
176.28 	spouse of a deceased active or deferred volunteer firefighter or, if none, the surviving child 
176.29 	or children of a deceased active or deferred volunteer firefighter;
176.30 	(3) "active volunteer firefighter" means a person who:
177.1 	(i) regularly renders fire suppression service, the performance or supervision of authorized 
177.2 	fire prevention duties, or the performance or supervision of authorized emergency medical 
177.3 	response activities for a municipal fire department or an independent nonprofit firefighting 
177.4 	corporation, who;
177.5 	(ii) has met the statutory and other requirements for relief association membership,; and 
177.6 	who
177.7 	(iii) is deemed by the relief association under law and its bylaws to be a fully qualified 
177.8 	member of the relief association or from the voluntary statewide lump-sum volunteer 
177.9 	firefighter retirement plan for at least one month; and
177.10 	(4) "deferred volunteer firefighter" means a former active volunteer firefighter who:
177.11 	(i) terminated active firefighting service, the performance or supervision of authorized 
177.12 	fire prevention duties, or the performance or supervision of authorized emergency medical 
177.13 	response activities; and
177.14 	(ii) has sufficient service credit from the applicable relief association or from the voluntary 
177.15 	statewide lump-sum volunteer firefighter retirement plan to be entitled to a service pension 
177.16 	under the bylaws of the relief association, but has not applied for or has not received the 
177.17 	service pension.; and
177.18 	(5) "volunteer firefighter" includes an individual whose services were utilized to perform 
177.19 	or supervise fire prevention duties if authorized under section 424A.01, subdivision 5, and 
177.20 	individuals whose services were used to perform emergency medical response duties or 
177.21 	supervise emergency medical response activities if authorized under section 424A.01, 
177.22 	subdivision 5a.

177.23 	EFFECTIVE DATE. This section is effective January 1, 2019.

177.24 	Sec. 24. Minnesota Statutes 2016, section 424B.20, subdivision 4, is amended to read:
177.25 		Subd. 4.Benefit trust fund establishment. (a) After the settlement of nonbenefit legal 
177.26 	obligations of the special fund of the volunteer firefighters relief association under subdivision 
177.27 	3, the board of the relief association shall transfer the remaining assets of the special fund, 
177.28 	as securities or in cash, as applicable, to the chief financial official of the municipality in 
177.29 	which the associated fire department was located if the fire department was a municipal fire 
177.30 	department or to the chief financial official of the municipality with the largest population 
177.31 	served by the fire department if the fire department was an independent nonprofit firefighting 
177.32 	corporation. If the fire department was a joint powers entity, the remaining assets of the 
177.33 	special fund shall be transferred to the chief financial official of the municipality designated 
178.1 	as the fiscal agent in the joint powers agreement or, if the agreement does not designate a 
178.2 	municipality as the fiscal agent, the remaining assets of the special fund shall be transferred 
178.3 	to the chief financial official of the municipality with the largest population served by the 
178.4 	joint powers fire department. The board shall also compile a schedule of the relief association 
178.5 	members to whom a service pension is or will be owed, any beneficiary to whom a benefit 
178.6 	is owed, the amount of the service pension or benefit payable based on the applicable bylaws 
178.7 	and state law and the service rendered to the date of the dissolution, and the date on which 
178.8 	the pension or benefit would first be payable under the bylaws of the relief association and 
178.9 	state law.
178.10 	(b) The municipality in which is locatedreceiving the remaining assets of the special 
178.11 	fund of a volunteer firefighters relief association that is dissolving under this section shall 
178.12 	establish a separate account in the municipal treasury which must function as a trust fund 
178.13 	for members of the volunteer firefighters relief association and their beneficiaries to whom 
178.14 	the volunteer firefighters relief association owes a service pension or other benefit under 
178.15 	the bylaws of the relief association and state law. Upon proper application, on or after the 
178.16 	initial date on which the service pension or benefit is payable, the municipal treasurer shall 
178.17 	pay the pension or benefit due, based on the schedule prepared under paragraph (a) and the 
178.18 	other records of the dissolved relief association. The trust fund under this section must be 
178.19 	invested and managed consistent with chapter 356A and section 424A.095. Upon payment 
178.20 	of the last service pension or benefit due and owing, any remaining assets in the trust fund 
178.21 	cancel to the general fund of the municipality.or, if the fire department was a joint powers 
178.22 	entity, any remaining assets in the trust fund cancel to the general fund of each municipality 
178.23 	that was a contracting party to the joint powers agreement as specified in the joint powers 
178.24 	agreement. If the joint powers agreement does not specify how the remaining assets are to 
178.25 	be distributed among the contracting parties, each of the contracting parties shall receive a 
178.26 	pro rata share of the remaining assets based on the proportion of total operating contributions 
178.27 	each contracting municipality made to the joint powers entity over the most recent ten 
178.28 	calendar years. If the special fund of the volunteer firefighters relief association had an 
178.29 	unfunded actuarial accrued liability upon dissolution, the municipality is liable for that 
178.30 	unfunded actuarial accrued liability. If the fire department was a joint powers entity, the 
178.31 	contracting municipalities are liable for their share of the unfunded actuarial accrued liability 
178.32 	as specified in the joint powers agreement. If the joint powers agreement does not specify 
178.33 	liability for any unfunded actuarial accrued liability, the contracting municipalities are liable 
178.34 	for their pro rata share of the unfunded actuarial accrued liability based on the proportion 
178.35 	of total operating contributions each contracting municipality made to the joint powers 
178.36 	entity over the most recent ten calendar years.

179.1 	EFFECTIVE DATE. This section is effective January 1, 2019.

179.2 	Sec. 25. CITY OF AUSTIN; ALLOCATION OF FIRE STATE AID FOR 
179.3 	FIREFIGHTERS.
 179.4 	(a) Notwithstanding any law to the contrary, the city of Austin must annually:
179.5 	(1) determine the amount of state aid required under the bylaws of the Austin Parttime 
179.6 	Firefighters Relief Association to fund the volunteer firefighters' service pensions;
179.7 	(2) transmit to the Austin Parttime Firefighters Relief Association any supplemental 
179.8 	state aid received under Minnesota Statutes, section 423A.022;
179.9 	(3) transmit to the Austin Parttime Firefighters Relief Association an amount of fire 
179.10 	state aid under Minnesota Statutes, sections 69.011 to 69.051, equal to the difference between 
179.11 	the amount determined under clause (1) and the amount transmitted under clause (2); and
179.12 	(4) transmit the remaining balance of fire state aid under Minnesota Statutes, sections 
179.13 	69.011 to 69.051, for the payment of the employer contribution requirements for firefighters 
179.14 	covered by the public employees police and fire retirement plan under Minnesota Statutes, 
179.15 	section 353.65, subdivision 3.
179.16 	(b) Notwithstanding Minnesota Statutes, section 69.031, subdivision 5, the city of Austin 
179.17 	has no liability to the relief association related to payments it made or will make to the 
179.18 	public employees police and fire retirement plan from fire state aid for 2013, 2014, 2015, 
179.19 	2016, 2017, and 2018.
179.20 	(c) This section expires July 1, 2019.

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

179.24 	Sec. 26. FIRE STATE AID WORK GROUP.
 179.25 	(a) The executive director of the Public Employees Retirement Association shall convene 
179.26 	a Fire State Aid Work Group to study and make recommendations to the Legislative 
179.27 	Commission on Pensions and Retirement on:
179.28 	(1) the current requirement that all fire state aid provided to municipalities with 
179.29 	firefighters as defined in Minnesota Statutes, section 353G.01, subdivision 15, or 424A.001, 
179.30 	subdivision 10, must be used to fund service pensions governed by Minnesota Statutes, 
179.31 	chapter 353G or 424A; and
180.1 	(2) modifying the requirement to allow municipalities to allocate a portion of fire state 
180.2 	aid to pay employer contributions on behalf of firefighters covered by the public employees 
180.3 	police and fire retirement plan under Minnesota Statutes, section 353.65, subdivision 3.
180.4 	(b) In making recommendations with information provided by Public Employees 
180.5 	Retirement Association and Legislative Commission on Pensions and Retirement staff, the 
180.6 	work group shall consider:
180.7 	(1) the history and purpose of fire state aid;
180.8 	(2) the history, purpose, and utilization of Minnesota Statutes 2012, section 353A.10, 
180.9 	subdivision 6, which allowed certain municipalities to allocate a portion of fire state aid to 
180.10 	pay public employees police and fire employer contributions;
180.11 	(3) the impact on current volunteer firefighters, volunteer firefighter recruitment and 
180.12 	retention, and municipalities if fire state aid is allocated between service pensions and public 
180.13 	employees police and fire employer contributions; and
180.14 	(4) a presentation by a city of Austin official and a representative from the Austin Parttime 
180.15 	Firefighters Relief Association on the city of Austin's current allocation of fire state aid.
180.16 	(c) Members of the work group shall include:
180.17 	(1) two representatives of Minnesota cities, appointed by the League of Minnesota Cities;
180.18 	(2) two representatives of Minnesota fire chiefs, who are fire chiefs from fire departments 
180.19 	with both volunteer firefighters covered by either a volunteer firefighter relief association 
180.20 	governed by Minnesota Statutes, chapter 424A, or the voluntary statewide volunteer 
180.21 	firefighter retirement plan governed by Minnesota Statutes, chapter 353G, and firefighters 
180.22 	covered by the public employees police and fire retirement plan governed by Minnesota 
180.23 	Statutes, section 353.64, appointed by the Minnesota State Fire Chiefs Association;
180.24 	(3) two representatives of Minnesota volunteer firefighters, who are active volunteer 
180.25 	firefighters, appointed by the Minnesota State Fire Departments Association;
180.26 	(4) one representative of the Office of the State Auditor, designated by the state auditor; 
180.27 	and
180.28 	(5) one representative of the Department of Revenue, designated by the commissioner 
180.29 	of revenue.
180.30 	(d) The work group shall elect a chair from among its members.
180.31 	(e) The work group shall submit a report by December 31, 2018, that contains the work 
180.32 	group's recommendations to the chair, vice-chair, and executive director of the Legislative 
181.1 	Commission on Pensions and Retirement. The report shall include recommendations 
181.2 	regarding:
181.3 	(1) municipalities allocating a portion of fire state aid to pay employer contributions to 
181.4 	the public employees police and fire retirement plan;
181.5 	(2) implementation of policies if fire state aid is divided, including the determination 
181.6 	of:
181.7 	(i) the entities that will decide how the fire state aid is allocated;
181.8 	(ii) how the allocation will be documented;
181.9 	(iii) how the allocation may be amended, if at all;
181.10 	(iv) what entity allocates the fire state aid; and
181.11 	(v) whether a government agency must monitor and enforce the allocation;
181.12 	(3) the scope of allowable allocations of fire state aid; and
181.13 	(4) other issues the work group determines are relevant.
181.14 	(e) The work group expires the day following the last day of the 2019 legislative session.

181.15 	EFFECTIVE DATE. This section is effective June 30, 2018.

181.16 	Sec. 27. EDEN PRAIRIE VOLUNTEER FIREFIGHTERS RELIEF ASSOCIATION 
181.17 	SERVICE PENSIONS.
 181.18 		Subdivision 1.Lump-sum service pension maximum. (a) Notwithstanding any provision 
181.19 	of Minnesota Statutes, section 424A.02, subdivision 3, paragraph (d), to the contrary, the 
181.20 	maximum lump-sum pension amount for each year of service credited that may be provided 
181.21 	for in the bylaws of the Eden Prairie volunteer firefighters relief association is the maximum 
181.22 	service pension figure corresponding to the average amount of available financing per active 
181.23 	covered firefighter for the applicable specified period:

181.24
181.25181.26	Minimum Average Amount of Available Financing 
per Firefighter
	Maximum Lump-Sum Service 
Pension Amount Payable for Each 
Year of Service
	
181.27	$ ...
		$ 10
		
181.28	11
		20
		
181.29	16
		30
		
181.30	23
		40
		
181.31	27
		50
		
181.32	32
		60
		
182.1	43
		80
		
182.2	54
		100
		
182.3	65
		120
		
182.4	77
		140
		
182.5	86
		160
		
182.6	97
		180
		
182.7	108
		200
		
182.8	131
		240
		
182.9	151
		280
		
182.10	173
		320
		
182.11	194
		360
		
182.12	216
		400
		
182.13	239
		440
		
182.14	259
		480
		
182.15	281
		520
		
182.16	302
		560
		
182.17	324
		600
		
182.18	347
		640
		
182.19	367
		680
		
182.20	389
		720
		
182.21	410
		760
		
182.22	432
		800
		
182.23	486
		900
		
182.24	540
		1000
		
182.25	594
		1100
		
182.26	648
		1200
		
182.27	702
		1300
		
182.28	756
		1400
		
182.29	810
		1500
		
182.30	864
		1600
		
182.31	918
		1700
		
182.32	972
		1800
		
182.33	1026
		1900
		
182.34	1080
		2000
		
182.35	1134
		2100
		
182.36	1188
		2200
		
182.37	1242
		2300
		
182.38	1296
		2400
		
183.1	1350
		2500
		
183.2	1404
		2600
		
183.3	1458
		2700
		
183.4	1512
		2800
		
183.5	1566
		2900
		
183.6	1620
		3000
		
183.7	1672
		3100
		
183.8	1726
		3200
		
183.9	1753
		3250
		
183.10	1780
		3300
		
183.11	1820
		3375
		
183.12	1834
		3400
		
183.13	1888
		3500
		
183.14	1942
		3600
		
183.15	1996
		3700
		
183.16	2023
		3750
		
183.17	2050
		3800
		
183.18	2104
		3900
		
183.19	2158
		4000
		
183.20	2212
		4100
		
183.21	2265
		4200
		
183.22	2319
		4300
		
183.23	2373
		4400
		
183.24	2427
		4500
		
183.25	2481
		4600
		
183.26	2535
		4700
		
183.27	2589
		4800
		
183.28	2643
		4900
		
183.29	2697
		5000
		
183.30	2751
		5100
		
183.31	2805
		5200
		
183.32	2859
		5300
		
183.33	2913
		5400
		
183.34	2967
		5500
		
183.35	3021
		5600
		
183.36	3075
		5700
		
183.37	3129
		5800
		
183.38	3183
		5900
		
184.1	3237
		6000
		
184.2	3291
		6100
		
184.3	3345
		6200
		
184.4	3399
		6300
		
184.5	3453
		6400
		
184.6	3507
		6500
		
184.7	3561
		6600
		
184.8	3615
		6700
		
184.9	3669
		6800
		
184.10	3723
		6900
		
184.11	3777
		7000
		
184.12	3831
		7100
		
184.13	3885
		7200
		
184.14	3939
		7300
		
184.15	3993
		7400
		
184.16	4047
		7500
		
184.17	4101
		7600
		
184.18	4155
		7700
		
184.19	4209
		7800
		
184.20	4263
		7900
		
184.21	4317
		8000
		
184.22	4371
		8100
		
184.23	4425
		8200
		
184.24	4479
		8300
		
184.25	4533
		8400
		
184.26	4587
		8500
		
184.27	4641
		8600
		
184.28	4695
		8700
		
184.29	4749
		8800
		
184.30	4803
		8900
		
184.31	4857
		9000
		
184.32	4911
		9100
		
184.33	4965
		9200
		
184.34	5019
		9300
		
184.35	5073
		9400
		
184.36	5127
		9500
		
184.37	5181
		9600
		
184.38	5235
		9700
		
185.1	5289
		9800
		
185.2	5343
		9900
		
185.3	5397
		10,000
		
185.4	5451
		10,100
		
185.5	5505
		10,200
		
185.6	5559
		10,300
		
185.7	5613
		10,400
		
185.8	5667
		10,500
		
185.9	5721
		10,600
		
185.10	5775
		10,700
		
185.11	5729
		10,800
		
185.12	5883
		10,900
		
185.13	5937
		11,000
		
185.14	5991
		11,100
		
185.15	6045
		11,200
		
185.16	6099
		11,300
		
185.17	6153
		11,400
		
185.18	6207
		11,500
		
185.19	6261
		11,600
		
185.20	6315
		11,700
		
185.21	6369
		11,800
		
185.22	6423
		11,900
		
185.23	6477
		12,000
		
185.24	6531
		12,100
		
185.25	6585
		12,200
		
185.26	6639
		12,300
		
185.27	6693
		12,400
		
185.28	6747
		12,500
		
185.29	6801
		12,600
		
185.30	6855
		12,700
		
185.31	6909
		12,800
		
185.32	6963
		12,900
		
185.33	7017
		13,000
		
185.34	7071
		13,100
		
185.35	7125
		13,200
		
185.36	7179
		13,300
		
185.37	7233
		13,400
		
185.38	7287
		13,500
		
186.1	7341
		13,600
		
186.2	7395
		13,700
		
186.3	7449
		13,800
		
186.4	7503
		13,900
		
186.5	7557
		14,000
		
186.6	7611
		14,100
		
186.7	7665
		14,200
		
186.8	7719
		14,300
		
186.9	7773
		14,400
		
186.10	7827
		14,500
		
186.11	7881
		14,600
		
186.12	7935
		14,700
		
186.13	7989
		14,800
		
186.14	8043
		14,900
		
186.15	8097
		15,000
		
186.16	Any amount in excess of 8097
		15,000
		
186.17 	(b) The maximum monthly service pension amount per month for each year of service 
186.18 	credited that may be provided for in the bylaws of the Eden Prairie volunteer firefighters 
186.19 	relief association must be set pursuant to Minnesota Statutes, section 424A.02, subdivision 
186.20 	3, paragraph (c).
186.21 		Subd. 2.Return to active service. (a) Notwithstanding any provision of Minnesota 
186.22 	Statutes, section 424A.01, subdivision 6, 424A.02, subdivision 2, or any other provision of 
186.23 	law, to the contrary, if the bylaws of the Eden Prairie volunteer firefighters relief association 
186.24 	so provide, a former firefighter who has received a lump-sum service pension or is receiving 
186.25 	a monthly benefit service pension and returns to active relief association membership under 
186.26 	Minnesota Statutes, section 424A.01, subdivision 6, paragraph (b), is entitled to receive an 
186.27 	unreduced lump-sum service pension for the resumption service period if the firefighter 
186.28 	completes at least three years of active service as an active member of the fire department 
186.29 	during the resumption service period and completes at least three years of active membership 
186.30 	with the relief association during the resumption service period.
186.31 	(b) A lump-sum service pension must be calculated by applying the service pension 
186.32 	amount in effect on the date of the firefighter's termination of the resumption service for all 
186.33 	years of the resumption service. No firefighter may be paid a service pension more than 
186.34 	once for the same period of service. Payment of a lump-sum service pension shall have no 
186.35 	effect on the firefighter's previous service pension.

187.1 	EFFECTIVE DATE. This section is effective the day after the Eden Prairie city council 
187.2 	and its chief clerical officer timely complete their compliance with Minnesota Statutes, 
187.3 	section 645.021, subdivisions 2 and 3.

187.4 	Sec. 28. CLEARBROOK FIRE DEPARTMENT RELIEF ASSOCIATION; 
187.5 	DEADLINE EXTENSION.
 187.6 	Notwithstanding Minnesota Statutes, section 69.051, subdivision 1b, the deadline for 
187.7 	reports submitted by the Clearbrook Fire Department Relief Association under Minnesota 
187.8 	Statutes, section 69.051, subdivisions 1 and 1a, for 2016 is extended to May 30, 2018. The 
187.9 	Clearbrook Fire Department Relief Association does not forfeit its 2017 state aid if 2016 
187.10 	reports are received by the state auditor on or before May 30, 2018.

187.11 	EFFECTIVE DATE. This section is effective May 27, 2018.

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

187.14 	EFFECTIVE DATE. This section is effective January 1, 2019.

187.15 	ARTICLE 15
187.16 	MSRS-ADMINISTERED RETIREMENT PLAN MODIFICATIONS

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

187.26 	Sec. 2. Minnesota Statutes 2016, section 352.91, subdivision 3f, is amended to read:
187.27 		Subd. 3f.Additional Department of Human Services personnel. (a) "Covered 
187.28 	correctional service" means service by a state employee in one of the employment positions 
187.29 	specified in paragraph (b) in the state-operated forensic services program or the Minnesota 
187.30 	sex offender program if at least 75 percent of the employee's working time is spent in direct 
188.1 	contact with patients and the determination of this direct contact is certified to the executive 
188.2 	director by the commissioner of human services.
188.3 	(b) The employment positions are:
188.4 	(1) behavior analyst 2;
188.5 	(2) behavior analyst 3;
188.6 	(3) certified occupational therapy assistant 1;
188.7 	(4) certified occupational therapy assistant 2;
188.8 	(5) chemical dependency counselor senior;
188.9 	(6) client advocate;
188.10 	(7) clinical program therapist 2;
188.11 	(8) clinical program therapist 3;
188.12 	(9) clinical program therapist 4;
188.13 	(10) customer services specialist principal;
188.14 	(11) dental assistant registered;
188.15 	(12) group supervisor;
188.16 	(13) group supervisor assistant;
188.17 	(14) human services support specialist;
188.18 	(15) licensed alcohol and drug counselor;
188.19 	(16) licensed practical nurse;
188.20 	(17) management analyst 3;
188.21 	(18) occupational therapist;
188.22 	(19) occupational therapist, senior;
188.23 	(20) physical therapist;
188.24 	(20)(21) psychologist 1;
188.25 	(21)(22) psychologist 2;
188.26 	(22)(23) psychologist 3;
188.27 	(23)(24) recreation program assistant;
189.1 	(24)(25) recreation therapist lead;
189.2 	(25)(26) recreation therapist senior;
189.3 	(26)(27) rehabilitation counselor senior;
189.4 	(27)(28) security supervisor;
189.5 	(28)(29) skills development specialist;
189.6 	(29)(30) social worker senior;
189.7 	(30)(31) social worker specialist;
189.8 	(31)(32) social worker specialist, senior;
189.9 	(32)(33) special education program assistant;
189.10 	(33)(34) speech pathology clinician;
189.11 	(34)(35) work therapy assistant; and
189.12 	(35)(36) work therapy program coordinator.

189.13 	Sec. 3. Minnesota Statutes 2016, section 352.91, subdivision 3g, is amended to read:
189.14 		Subd. 3g.Additional Corrections Department personnel. (a) "Covered correctional 
189.15 	service" means service by a state employee in one of the employment positions specified 
189.16 	in paragraph (b) if at least 75 percent of the employee's working time is spent in direct 
189.17 	contact with inmates and the determination of this direct contact is certified to the executive 
189.18 	director by the commissioner of corrections.
189.19 	(b) The qualifying employment positions are:
189.20 	(1) corrections discipline unit supervisor;
189.21 	(2) dental assistant registered;
189.22 	(3) dental hygienist;
189.23 	(4) food service supervisor;
189.24 	(5) medical assistant, certified;
189.25 	(6) psychologist 2; and
189.26 	(5)(7) sentencing to service crew leader involved with the inmate community work 
189.27 	crew program.

190.1 	Sec. 4. Minnesota Statutes 2016, section 352.91, is amended by adding a subdivision to 
190.2 	read:
190.3 		Subd. 4c.Department of Human Services; procedure for coverage change 
190.4 	considerations. (a) The commissioner of human services shall appoint a standing review 
190.5 	committee to review and determine classifications or positions that may be included in 
190.6 	legislative requests for correctional state employees retirement plan coverage under 
190.7 	subdivision 4a.
190.8 	(b) The department's human resources director shall convene a meeting of the review 
190.9 	committee only at the request of a labor organization or a member of the department's 
190.10 	management team.
190.11 	(c) The review committee must review all requests and the supporting documentation 
190.12 	for coverage by the correctional state employees retirement plan and must make a 
190.13 	recommendation to the commissioner regarding which classifications or positions meet the 
190.14 	statutory requirements for coverage. The review committee must also make a 
190.15 	recommendation to the commissioner regarding classifications or positions that no longer 
190.16 	meet the statutory requirement for coverage by the correctional state employees retirement 
190.17 	plan and removal of the classification or position from the applicable statute.
190.18 	(d) The department's human resources director must provide a notice of each 
190.19 	determination and of the employee's right to appeal the determination. Appeals must be 
190.20 	filed with the department's human resources director within 30 days of the date of the notice 
190.21 	of determination.
190.22 	(e) The commissioner of human services shall review appeals of determinations for 
190.23 	coverage. The commissioner's determinations are final.
190.24 	(f) All classifications or positions recommended by the review committee for inclusion 
190.25 	in or exclusion from the correctional state employees retirement plan must be forwarded to 
190.26 	the commissioner of human services for the preparation of legislation to implement the 
190.27 	coverage change and submission. If the commissioner determines that the employment 
190.28 	position is appropriate for inclusion in or exclusion from the correctional state employees 
190.29 	retirement plan, the commissioner shall submit a written recommendation documenting 
190.30 	classifications or positions that should or should not be covered by the correctional state 
190.31 	employees retirement plan. The department's human resources director must retain the 
190.32 	documentation of each request and the final determination.

191.1 	Sec. 5. Minnesota Statutes 2016, section 352F.04, subdivision 1, is amended to read:
191.2 		Subdivision 1.Enhanced augmentation rates. (a) The deferred annuity of a terminated 
191.3 	hospital employee who attained that status before June 2, 2006, is subject to augmentation 
191.4 	under Minnesota Statutes 1994, section 352.72, subdivision 2, except that the rate of 
191.5 	augmentation is 5.5 percent compounded annually untilto be applied each January 1 is the 
191.6 	following the year in which the person attains age 55.:

191.7		January 1, 2019
	4.5 percent
	
191.8		January 1, 2020
	3.75 percent
	
191.9		January 1, 2021
	3.0 percent
	
191.10		January 1, 2022
	2.25 percent
	
191.11		January 1, 2023
	1.5 percent
	
191.12		January 1, 2024
	0.75 percent
	
191.13		After December 31, 2024, the deferred annuity must not be augmented.
	
191.14 	Augmentation for each year is effective as of January 1 of that year.
191.15 	From that date to the effective date of retirement, the augmentation rate is 7.5 percent 
191.16 	compounded annually.
191.17 	(b) If a terminated hospital employee attained that status on or after June 2, 2006, the 
191.18 	augmentation rate is four percent compounded annually until January 1, following the year 
191.19 	in which the person attains age 55. From that date to the effective date of retirement, the 
191.20 	augmentation rate is six percent compounded annually.

191.21 	Sec. 6. Minnesota Statutes 2016, section 352F.04, subdivision 2, is amended to read:
191.22 		Subd. 2.Exceptions Exception. The increasedenhanced augmentation rates specified 
191.23 	in subdivision 1 do not apply if the terminated hospital employee:
191.24 	(1) becomes covered again by a retirement plan enumerated in section 356.30, subdivision 
191.25 	3, on or before June 30, 2015; or
191.26 	(2) begins receipt of a retirement annuity under chapter 352 before age 62 while employed 
191.27 	by the employer which assumed operations of the medical facility or other public employing 
191.28 	unit or purchased the medical facility or other public employing unit.

191.29 	Sec. 7. Minnesota Statutes 2016, section 352F.04, is amended by adding a subdivision to 
191.30 	read:
191.31 		Subd. 3.Return to covered employment. (a) If a terminated hospital employee becomes 
191.32 	covered by a retirement plan enumerated in section 356.30, subdivision 3, the employee 
192.1 	shall be entitled to whichever of the following annuities produces the highest monthly 
192.2 	payment:
192.3 	(1) the deferred annuity and augmentation to which the employee would have been 
192.4 	entitled under subdivision 1 reduced by the dollar amount of any annuity earned under any 
192.5 	enumerated retirement plan after the effective date defined in section 352F.02, subdivision 
192.6 	3;
192.7 	(2) a combined service annuity calculated under section 356.30; or
192.8 	(3) an annuity calculated under section 352.72 for coverage by more than one retirement 
192.9 	system using the augmentation rates in section 352.72, subdivision 2, paragraph (a).
192.10 	(b) This subdivision applies to any terminated hospital employee who begins to receive 
192.11 	a retirement annuity under chapter 352 on or after July 1, 2015.

192.12 	Sec. 8. Minnesota Statutes 2016, section 356.645, is amended to read:
192.13 	356.645 INVESTMENT OF VARIOUS DEFINED CONTRIBUTION PLAN 
192.14 	ASSETS.
192.15 	The State Board of Investment shall determine the investments to be made available to 
192.16 	plan participants in plans defined in sections 352.965and,352.98, and 383B.46 and chapters 
192.17 	352D and 353D. Investments made available to plan participants must include at least one 
192.18 	or more of the following:
192.19 	(1) shares in the Minnesota supplemental investment fund established in section 11A.17;
192.20 	(2) savings accounts in federally insured financial institutions;
192.21 	(3) life insurance contracts, fixed annuity contracts, and variable annuity contracts from 
192.22 	companies that are subject to regulation by the commissioner of commerce;
192.23 	(4) investment options from open-end investment companies registered under the federal 
192.24 	Investment Company Act of 1940, United States Code, title 15, sections 80a-1 to 80a-64;
192.25 	(5) investment options from a firm that is a registered investment adviser under the 
192.26 	Investment Advisers Act of 1940, United States Code, title 15, sections 80b-1 to 80b-21; 
192.27 	and
192.28 	(6) investment options of a bank as defined in United States Code, title 15, section 80b-2, 
192.29 	subsection (a), paragraph (2), or a bank holding company as defined in the Bank Holding 
192.30 	Company Act of 1956, United States Code, title 12, section 1841, subsection (a), paragraph 
192.31 	(1).

193.1 	Sec. 9. Minnesota Statutes 2016, section 383B.47, is amended to read:
193.2 	383B.47 INVESTMENT OF RETIREMENT MONEY FOR STATE 
193.3 	SUPPLEMENTAL FUND SHARES.
193.4 	With theWhen moneys are deposited to the credit of the supplemental retirement account, 
193.5 	the Minnesota State Retirement System shall purchase shares on behalf of Hennepin County 
193.6 	in the accounts of the Minnesota supplemental investment fundmake available those 
193.7 	investments chosen by the State Board of Investment under section 356.645 in the manner 
193.8 	as provided in section 383B.48.

193.9 	Sec. 10. Minnesota Statutes 2016, section 383B.48, is amended to read:
193.10 	383B.48 BUYING STATE SUPPLEMENTAL INVESTMENT FUND SHARES.
193.11 	(a) A participant in the Hennepin County supplemental retirement program shall indicate 
193.12 	the account of the Minnesota supplemental investment fundinvestments, from those made 
193.13 	available pursuant to section 383B.47, in which the participant wishesparticipant's salary 
193.14 	deductions and county matching contributions attributable to salary deductions are to be 
193.15 	invested for such time as allowed by the Minnesota State Retirement System. The Minnesota 
193.16 	State Retirement System shall purchase with the salary deductions and county matching 
193.17 	funds attributable to the salary deductions shares in the appropriate account of the Minnesota 
193.18 	supplemental investment fund in accordance with the indicated preferences of the participant. 
193.19 	However,
193.20 	(b) The county of Hennepin has the authority to determine which accounts of the 
193.21 	Minnesota supplemental investment fundinvestments made available pursuant to section 
193.22 	383B.47 will be available for participant investment. The shares purchased must stand in 
193.23 	the name of the county of Hennepin.
193.24 	(c) A record must be kept by the Minnesota State Retirement System indicating the 
193.25 	number of shares in each account of the Minnesota supplemental investment fund purchased 
193.26 	with the salary deductions and county matching funds attributable to the salary deductions 
193.27 	of each participant. The record must be known as the "participant's share account record." 
193.28 	The participant's share account record must show, in addition to the number of shares in 
193.29 	the account, any cash balance of salary deductions or county matching funds attributable 
193.30 	to those deductions which stand uninvested in shares.
193.31 	(d) At the option of the county of Hennepin, and subject to any terms and conditions 
193.32 	established and communicated in writing by the county to a participant, the participant may 
193.33 	designate no more often than once each month that prior salary deductions and county 
194.1 	matching contributions attributable to the salary deductions, together with any interest 
194.2 	earned, be reinvested in another account of the Minnesota supplemental investment fund
194.3 	made available by the county of Hennepin under this section.

194.4 	Sec. 11. Minnesota Statutes 2016, section 383B.49, is amended to read:
194.5 	383B.49 SUPPLEMENTAL RETIREMENT BENEFITS; REDEMPTION OF 
194.6 	SHARES.
194.7 	When requested to do so, in writing, on forms provided by the Minnesota State Retirement 
194.8 	System, by a participant, surviving spouse, a guardian of a surviving child or a personal 
194.9 	representative, whichever is applicable, the Minnesota State Retirement System shall on 
194.10 	behalf of Hennepin County redeem shares in the accounts of the Minnesota supplemental 
194.11 	investment fundinvestments standing in a participant's share account record under the 
194.12 	following circumstances and in accordance with the laws and regulations governing the 
194.13 	Minnesota supplementalapplicable investment fund:
194.14 	(1) A participant who is no longer employed by the county of Hennepin is entitled to 
194.15 	receive the cash realized on the redemption of the shares to the credit of the participant's 
194.16 	share account record of the person. The participant may request the redemption of all or a 
194.17 	portion of the shares in the participant's share account record of the person, but may not 
194.18 	request more than one redemption in any one calendar year. If only a portion of the shares 
194.19 	in the participant's share account record is requested to be redeemed the person may request 
194.20 	to redeem not less than 20 percent of the shares in any one calendar year and the redemption 
194.21 	must be completed in no more than five years. The person may select annual redemption 
194.22 	in a single lump sum or in monthly payments. An election is irrevocable except that a 
194.23 	participant may request an amendment of the election to redeem all of the person's remaining 
194.24 	shares. All requests under this paragraph are subject to application to and approval of the 
194.25 	Minnesota State Retirement System upon verification by Hennepin County through the 
194.26 	county administrator of the recipient's eligibility to redeem funds.
194.27 	(2) In the event of the death of a participant leaving a surviving spouse, the surviving 
194.28 	spouse is entitled to receive the cash realized on the redemption of all or a portion of the 
194.29 	shares in the participant's share account record of the deceased spouse, but in no event may 
194.30 	the spouse request more than one redemption in each calendar year. If only a portion of the 
194.31 	shares in the participant's share account record is requested to be redeemed, the surviving 
194.32 	spouse may request the redemption of not less than 20 percent of the shares in any one 
194.33 	calendar year. The surviving spouse may elect annual redemption in a single lump-sum 
194.34 	payment or in monthly payments. Redemption must be completed in no more than five 
195.1 	years. An election is irrevocable except that the surviving spouse may request an amendment 
195.2 	of the election to redeem all of the participant's remaining shares. All requests under this 
195.3 	paragraph are subject to application to and approval of the Minnesota State Retirement 
195.4 	System upon verification by Hennepin County through the county administrator of the 
195.5 	recipient's eligibility to redeem funds. Upon the death of the surviving spouse, any shares 
195.6 	remaining in the participant's share account record must be redeemed on behalf of Hennepin 
195.7 	County by the Minnesota State Retirement System and the cash realized from the redemption 
195.8 	distributed to the estate of the surviving spouse.
195.9 	(3) In the event of the death of a participant leaving no surviving spouse, but leaving a 
195.10 	minor surviving child or minor surviving children, the guardianship estate of the minor 
195.11 	child is, or the guardianship estates of the minor children are, entitled to receive the cash 
195.12 	realized on the redemption of all shares to the credit of the participant's share account record 
195.13 	of the deceased participant. In the event of minor surviving children, the cash realized must 
195.14 	be paid in equal shares to the guardianship estates of the minor surviving children.
195.15 	(4) In the event of the death of a participant leaving no surviving spouse and no minor 
195.16 	surviving children, the estate of the deceased participant is entitled to receive the cash 
195.17 	realized on the redemption of all shares to the credit of the participant's share account record 
195.18 	of the deceased participant.

195.19 	Sec. 12. Minnesota Statutes 2016, section 383B.50, is amended to read:
195.20 	383B.50 PROSPECTUS.
195.21 	The county of Hennepin shall distribute or otherwise make available to each participant 
195.22 	a prospectus of the Minnesota supplemental investment fund when received from the fund
195.23 	or other applicable information with respect to the investments authorized pursuant to 
195.24 	sections 383B.47 and 383B.48.

195.25 	Sec. 13. ANNUITY ADJUSTMENT.
 195.26 	Under Minnesota Statutes, section 352F.04, subdivision 3, if any terminated hospital 
195.27 	employee began to receive a retirement annuity under Minnesota Statutes, chapter 352, as 
195.28 	adjusted under Minnesota Statutes, chapter 352F, on or after July 1, 2015, but prior to the 
195.29 	effective date of this section, the terminated hospital employee's annuity must be recalculated 
195.30 	under Minnesota Statutes, section 352F.04, subdivision 3, and, if the monthly amount as 
195.31 	recalculated exceeds the monthly amount being received by the terminated hospital employee, 
195.32 	the Minnesota State Retirement System shall:
196.1 	(1) begin paying the recalculated monthly amount as of the first payment date after the 
196.2 	effective date of this section; and
196.3 	(2) pay the sum of the difference between the amount the terminated hospital employee 
196.4 	received each month since commencement of the annuity and the amount the terminated 
196.5 	hospital employee would have received under Minnesota Statutes, section 352F.04, 
196.6 	subdivision 3, for that month. The sum of the difference each month shall be paid in a lump 
196.7 	sum to the terminated hospital employee along with the first payment of the recalculated 
196.8 	amount under clause (1).

196.9 	Sec. 14. COVERAGE TRANSFER DATES.
 196.10 	(a) The coverage transfer under Minnesota Statutes, section 352.91, subdivision 3g, 
196.11 	paragraph (b), clause (4), also covers employment in that position on or after April 18, 2016, 
196.12 	for purposes of Minnesota Statutes, section 352.955, subdivisions 1, 3, 4, 5, and 6.
196.13 	(b) The coverage change under Minnesota Statutes, section 352.91, subdivision 3g, 
196.14 	paragraph (b), clause (5), is prospective only.

196.15 	Sec. 15. EFFECTIVE DATE.
 196.16 	(a) Sections 1 and 3 to 14 are effective June 30, 2018.
196.17 	(b) Section 2 is effective on the first day of the first payroll period occurring after June 
196.18 	30, 2018, and applies to prospective service only.

196.19 	ARTICLE 16
196.20 	PERA-ADMINISTERED RETIREMENT PLAN MODIFICATIONS

196.21 	Section 1. Minnesota Statutes 2016, section 353.01, subdivision 2b, is amended to read:
196.22 		Subd. 2b.Excluded employees. (a) The following public employees are not eligible to 
196.23 	participate as members of the association with retirement coverage by the general employees 
196.24 	retirement plan, the local government correctional employees retirement plan under chapter 
196.25 	353E, or the public employees police and fire retirement plan:
196.26 	(1) persons whose annual salary from one governmental subdivision never exceeds an 
196.27 	amount, stipulated in writing in advance, of $5,100 if the person is not a school district 
196.28 	employee or $3,800 if the person is a school year employee. If annual compensation from 
196.29 	one governmental subdivision to an employee exceeds the stipulated amount in a calendar 
196.30 	year or a school year, whichever applies, after being stipulated in advance not to exceed the 
196.31 	applicable amount, the stipulation is no longer valid and contributions must be made on 
197.1 	behalf of the employee under section 353.27, subdivision 12, from the first month in which 
197.2 	the employee received salary exceeding $425 in a month;
197.3 	(2) public officers who are elected to a governing body, city mayors, or persons who 
197.4 	are appointed to fill a vacancy in an elective office of a governing body, whose term of 
197.5 	office commences on or after July 1, 2002, for the service to be rendered in that elective 
197.6 	position;
197.7 	(3) election judges and persons employed solely to administer elections;
197.8 	(4) patient and inmate personnel who perform services for a governmental subdivision;
197.9 	(5) except as otherwise specified in subdivision 12a, employees who are employed solely 
197.10 	in a temporary position as defined under subdivision 12a, and employees who resign from 
197.11 	a nontemporary position and accept a temporary position within 30 days of that resignation 
197.12 	in the same governmental subdivision;
197.13 	(6) employees who are employed by reason of work emergency caused by fire, flood, 
197.14 	storm, or similar disaster, but if the person becomes a probationary or provisional employee 
197.15 	within the same pay period, other than on a temporary basis, the person is a "public 
197.16 	employee" retroactively to the beginning of the pay period;
197.17 	(7) employees who by virtue of their employment in one governmental subdivision are 
197.18 	required by law to be a member of and to contribute to any of the plans or funds administered 
197.19 	by the Minnesota State Retirement System, the Teachers Retirement Association, or the St. 
197.20 	Paul Teachers Retirement Fund Association, but this exclusion must not be construed to 
197.21 	prevent a person from being a member of and contributing to the Public Employees 
197.22 	Retirement Association and also belonging to and contributing to another public pension 
197.23 	plan or fund for other service occurring during the same period of time, and a person who 
197.24 	meets the definition of "public employee" in subdivision 2 by virtue of other service occurring 
197.25 	during the same period of time becomes a member of the association unless contributions 
197.26 	are made to another public retirement plan on the salary based on the other service or to the 
197.27 	Teachers Retirement Association by a teacher as defined in section 354.05, subdivision 2;
197.28 	(8) persons who are members of a religious order and are excluded from coverage under 
197.29 	the federal Old Age, Survivors, Disability, and Health Insurance Program for the performance 
197.30 	of service as specified in United States Code, title 42, section 410(a)(8)(A), as amended, if 
197.31 	no irrevocable election of coverage has been made under section 3121(r) of the Internal 
197.32 	Revenue Code of 1954, as amended;
197.33 	(9) persons who are:
198.1 	(i) employed by a governmental subdivision who have not reached the age of 23 and 
198.2 	who are enrolled on a full-time basis to attend or are attending classes on a full-time basis 
198.3 	at an accredited school, college, or university in an undergraduate, graduate, or 
198.4 	professional-technical program, or at a public or charter high school;
198.5 	(ii) employed as resident physicians, medical interns, pharmacist residents, or pharmacist 
198.6 	interns and are serving in a degree or residency program in a public hospital or in a public 
198.7 	clinic; or
198.8 	(iii) students who are serving for a period not to exceed five years in an internship or a 
198.9 	residency program that is sponsored by a governmental subdivision, including an accredited 
198.10 	educational institution;
198.11 	(10) persons who hold a part-time adult supplementary technical college license who 
198.12 	render part-time teaching service in a technical college;
198.13 	(11) except for employees of Hennepin County or employees of Hennepin Healthcare 
198.14 	System, Inc., foreign citizens who are employed by a governmental subdivision under a 
198.15 	work permit or under an H-1b visa initially issued or extended for a combined period of 
198.16 	less than three years of employment but upon extension of the employment of the visa 
198.17 	beyond the three-year period, the foreign citizen must be reported for membership beginning 
198.18 	on the first of the month following the extension if the monthly earnings threshold as provided 
198.19 	under subdivision 2a, paragraph (a), is met;
198.20 	(12) public hospital employees who elected not to participate as members of the 
198.21 	association before 1972 and who did not elect to participate from July 1, 1988, to October 
198.22 	1, 1988;
198.23 	(13) except as provided in section 353.86, volunteer ambulance service personnel, as 
198.24 	defined in subdivision 35, but persons who serve as volunteer ambulance service personnel 
198.25 	may still qualify as public employees under subdivision 2 and may be members of the Public 
198.26 	Employees Retirement Association and participants in the general employees retirement 
198.27 	plan or the public employees police and fire plan, whichever applies, on the basis of 
198.28 	compensation received from public employment service other than service as volunteer 
198.29 	ambulance service personnel;
198.30 	(14) except as provided in section 353.87, volunteer firefighters, as defined in subdivision 
198.31 	36, engaging in activities undertaken as part of volunteer firefighter duties, but a person 
198.32 	who is a volunteer firefighter may still qualify as a public employee under subdivision 2 
198.33 	and may be a member of the Public Employees Retirement Association and a participant 
198.34 	in the general employees retirement plan or the public employees police and fire plan, 
199.1 	whichever applies, on the basis of compensation received from public employment activities 
199.2 	other than those as a volunteer firefighter;
199.3 	(15) pipefitters and associated trades personnel employed by Independent School District 
199.4 	No. 625, St. Paul, with coverage under a collective bargaining agreement by the pipefitters 
199.5 	local 455 pension plan who were either first employed after May 1, 1997, or, if first employed 
199.6 	before May 2, 1997, elected to be excluded under Laws 1997, chapter 241, article 2, section 
199.7 	12;
199.8 	(16) electrical workers, plumbers, carpenters, and associated trades personnel who are 
199.9 	employed by Independent School District No. 625, St. Paul, or the city of St. Paul, who 
199.10 	have retirement coverage under a collective bargaining agreement by the Electrical Workers 
199.11 	Local 110 pension plan, the United Association Plumbers Local 34 pension plan, or the 
199.12 	pension plan applicable to Carpenters Local 322 who were either first employed after May 
199.13 	1, 2000, or, if first employed before May 2, 2000, elected to be excluded under Laws 2000, 
199.14 	chapter 461, article 7, section 5;
199.15 	(17) bricklayers, allied craftworkers, cement masons, glaziers, glassworkers, painters, 
199.16 	allied tradesworkers, and plasterers who are employed by the city of St. Paul or Independent 
199.17 	School District No. 625, St. Paul, with coverage under a collective bargaining agreement 
199.18 	by the Bricklayers and Allied Craftworkers Local 1 pension plan, the Cement Masons Local 
199.19 	633 pension plan, the Glaziers and Glassworkers Local L-1324 pension plan, the Painters 
199.20 	and Allied Trades Local 61 pension plan, or the Twin Cities Plasterers Local 265 pension 
199.21 	plan who were either first employed after May 1, 2001, or if first employed before May 2, 
199.22 	2001, elected to be excluded under Laws 2001, First Special Session chapter 10, article 10, 
199.23 	section 6;
199.24 	(18) plumbers who are employed by the Metropolitan Airports Commission, with 
199.25 	coverage under a collective bargaining agreement by the Plumbers Local 34 pension plan, 
199.26 	who either were first employed after May 1, 2001, or if first employed before May 2, 2001, 
199.27 	elected to be excluded under Laws 2001, First Special Session chapter 10, article 10, section 
199.28 	6;
199.29 	(19) employees who are hired after June 30, 2002, solely to fill seasonal positions under 
199.30 	subdivision 12b which are limited in duration by the employer to 185 consecutive calendar 
199.31 	days or less in each year of employment with the governmental subdivision;
199.32 	(20) persons who are provided supported employment or work-study positions by a 
199.33 	governmental subdivision and who participate in an employment or industries program 
199.34 	maintained for the benefit of these persons where the governmental subdivision limits the 
200.1 	position's duration to up to five years, including persons participating in a federal or state 
200.2 	subsidized on-the-job training, work experience, senior citizen, youth, or unemployment 
200.3 	relief program where the training or work experience is not provided as a part of, or for, 
200.4 	future permanent public employment;
200.5 	(21) independent contractors and the employees of independent contractors;
200.6 	(22) reemployed annuitants of the association during the course of that reemployment;
200.7 	(23) persons appointed to serve on a board or commission of a governmental subdivision 
200.8 	or an instrumentality thereof;
200.9 	(24) persons employed as full-time fixed-route bus drivers by the St. Cloud Metropolitan 
200.10 	Transit Commission who are members of the International Brotherhood of Teamsters Local 
200.11 	638 and who are, by virtue of that employment, members of the International Brotherhood 
200.12 	of Teamsters Central States pension plan; and
200.13 	(25) electricians or pipefitters employed by the Minneapolis Park and Recreation Board, 
200.14 	with coverage under a collective bargaining agreement by the IBEW local 292, or pipefitters 
200.15 	local 539 pension plan, who were first employed before May 2, 2015, and who elected to 
200.16 	be excluded under Laws 2015, chapter 68, article 11, section 5.; and
200.17 	(26) laborers and associated trades personnel employed by the city of St. Paul or 
200.18 	Independent School District No. 625, St. Paul, who are designated as temporary employees 
200.19 	under a collective bargaining agreement and have retirement coverage by the Minnesota 
200.20 	Laborers Pension Fund who were either first employed on or after June 1, 2018, or, if first 
200.21 	employed before June 1, 2018, who elected to be excluded under section 13.
200.22 	(b) Any person performing the duties of a public officer in a position defined in 
200.23 	subdivision 2a, paragraph (a), clause (3), is not an independent contractor and is not an 
200.24 	employee of an independent contractor.

200.25 	Sec. 2. Minnesota Statutes 2016, section 353.01, subdivision 43, is amended to read:
200.26 		Subd. 43.Line of duty death. "Line of duty death" means:
200.27 	(1) a death that occurs while performing or as a direct result of performing normal or 
200.28 	less frequent duties which are specific to protecting the property and personal safety of 
200.29 	others and that present inherent dangers that are specific to the positions covered by the 
200.30 	public employees police and fire plan.; or
200.31 	(2) a death that is determined by the commissioner of public safety to meet the 
200.32 	requirements of section 299A.41, subdivision 3.

201.1 	Sec. 3. Minnesota Statutes 2016, section 353D.07, is amended to read:
201.2 	353D.07 BENEFITS.
201.3 		Subdivision 1.Type of plan; uniformity. (a) The plan is a defined contribution plan
201.4 	the benefits from which are payable upon termination of service, retirement, disability, or 
201.5 	death. The amount of benefits is determined by the value of accumulated. A participant's 
201.6 	benefit is equal to the value of the individual account established for the participant under 
201.7 	section 353D.04, taking into account all contributions credited to the account plus a 
201.8 	proportionate share of investment income of the fund credited to each individualthe account.
201.9 	(b) In the case of ambulance service personnel, eligibility standards must be uniform 
201.10 	among all ambulance service personnel of an ambulance service electing to participate.
201.11 		Subd. 2.Payment of benefits. Withdrawal of a benefit based on individual participant 
201.12 	contributions and employer contributions plus accrued investment income is payable upon 
201.13 	the death or termination of a participant but not at the time an individual revokes membership 
201.14 	in the defined contribution plan under section 353D.02. An application by or on behalf of 
201.15 	the participant must be filed before any payment of benefits may be made. (a) A participant 
201.16 	is entitled to receive a distribution of the participant's benefit after termination of service 
201.17 	for any reason, disability, or death, or on or after attaining age 65 if still employed by a 
201.18 	public employer.
201.19 	(b) Unless the distribution is required under section 353D.071, no distribution shall be 
201.20 	made unless the participant has submitted an application requesting a distribution; a direct 
201.21 	rollover; a transfer as permitted under subdivision 3, paragraph (b); or installments as 
201.22 	permitted under subdivision 4. If the distribution is an eligible rollover distribution as defined 
201.23 	in section 356.635, subdivision 4, the executive director shall provide notice to the participant 
201.24 	or beneficiary, as applicable, of the right to elect a direct rollover.
201.25 		Subd. 3.Form of benefit. A retirement(a) Except as provided in subdivision 4 or 6, 
201.26 	distribution of a participant's benefit is payableshall be available in the form of a lump sum 
201.27 	equal to the value of athe participant's account at the date of withdrawal. As an alternative 
201.28 	to a lump-sum distribution, the participant may choose to have the association transfer the 
201.29 	total account valuedistribution.
201.30 	(b) The participant may elect to (1) receive the lump sum directly, (2) have the lump 
201.31 	sum distributed in a direct rollover as described in section 356.635, subdivision 3, or (3) 
201.32 	have the lump sum transferred for the purchase of an annuity payable at a designated age 
201.33 	to an insurance company of the participant's choice that is licensed to do business in the 
201.34 	state.
202.1 		Subd. 4.Disability of participant. If an activea participant becomes permanently and 
202.2 	totally disabled as defined in section 353.01, subdivision 19, thatthe participant may 
202.3 	withdraw from theelect distribution of the participant's benefit in a lump sum equal to the 
202.4 	value of the participant's account or in equal monthly installments in an amount, designated 
202.5 	by the participant in increments of $100 but not to exceed ten times the joint employer and 
202.6 	employee contribution for the month preceding disability. The option must be exercised by 
202.7 	filing an application on a form prescribed by the executive director. Payments may begin 
202.8 	onas early as the first day of the month following the month in which the disability occurred
202.9 	or on a later date if elected by the participant. Payments end when the participant's disabled 
202.10 	status ends or the account balance is exhausted, whichever occurs first.
202.11 		Subd. 5.Death of a participant. If an activea participant dies while employed or before 
202.12 	the participant's account is distributed in its entirety, the total value of the account must be 
202.13 	paid in a lump sum to the designated beneficiary or, if none, the heirs at law of the decedent.
202.14 	If the distribution is an eligible rollover distribution as defined in section 356.635, subdivision 
202.15 	4, the executive director shall provide an election form and notice of the right to elect a 
202.16 	direct rollover.
202.17 		Subd. 6.Distributions while employed. If a participant is employed by a public employer 
202.18 	and is at least age 65, the participant may elect a distribution of all or a portion of the 
202.19 	participant's account, subject to the application and notice requirements in subdivision 2, 
202.20 	paragraph (b). The participant may elect a distribution under this subdivision no more 
202.21 	frequently than once each calendar year. The minimum amount of a distribution under this 
202.22 	subdivision is $5,000.

202.23 	Sec. 4. Minnesota Statutes 2016, section 353G.01, subdivision 9, is amended to read:
202.24 		Subd. 9.Municipality. "Municipality" means a governmental entity specified in section 
202.25 	69.011, subdivision 1, paragraph (b), clauses (1), (2), and (5)., a city or township that has 
202.26 	entered into a contract with an independent nonprofit firefighting corporation, or a city or 
202.27 	township that has entered into a contract with a joint powers entity established under section 
202.28 	471.59.

202.29 	Sec. 5. Minnesota Statutes 2016, section 353G.01, is amended by adding a subdivision to 
202.30 	read:
202.31 		Subd. 9a.Relief association. "Relief association" means a volunteer firefighter relief 
202.32 	association established under chapter 424A to which records, assets, and liabilities related 
203.1 	to lump-sum or monthly benefits for active and former firefighters will be transferred from 
203.2 	the retirement fund upon satisfaction of the requirements of section 353G.17.

203.3 	Sec. 6. Minnesota Statutes 2016, section 353G.02, subdivision 6, is amended to read:
203.4 		Subd. 6.Initial administrative expenses of the monthly benefit retirement division; 
203.5 	allocation of reimbursement. (a) The administration expenses incurred by the Public 
203.6 	Employees Retirement Association in the establishment of the monthly benefit retirement 
203.7 	division of the voluntary statewide volunteer firefighter retirement plan, including any 
203.8 	computer programming expenses and any actuarial consultant expenses, are payable from 
203.9 	the assets of the initial monthly benefit volunteer firefighter relief association that elects to 
203.10 	transfer its administration to the voluntary statewide volunteer firefighter retirement plan, 
203.11 	following the transfer of assets.
203.12 	(b) The administrative expenses in excess of $33,600 paid under paragraph (a) must be 
203.13 	reimbursed by the next nine monthly benefit volunteer firefighter relief associations that 
203.14 	transfer plan administration to the voluntary statewide volunteer firefighter retirement plan. 
203.15 	The reimbursement charge for each of the nine is three-tenths of one percent of the market 
203.16 	value of assets of the volunteer firefighter relief association as of December 31, 2012. The 
203.17 	reimbursement amounts, up to the amount of administrative expenses actually incurred 
203.18 	under paragraph (a) in excess of $33,600, must be credited to the account of the fire 
203.19 	department associated with the former monthly benefit volunteer firefighter relief association 
203.20 	that first transferred plan administration to the volunteer firefighter retirement plan.

203.21 	Sec. 7. Minnesota Statutes 2016, section 353G.03, subdivision 3, is amended to read:
203.22 		Subd. 3.Composition. (a) The advisory board consists of eightten members.
203.23 	(b) The advisory board members are:
203.24 	(1) one representative of Minnesota townships, appointed by the Minnesota Association 
203.25 	of Townships;
203.26 	(2) two representatives of Minnesota cities, appointed by the League of Minnesota Cities;
203.27 	(3) one representative of Minnesota fire chiefs, who is a fire chief, appointed by the 
203.28 	Minnesota State Fire Chiefs Association;
203.29 	(4) two representatives of Minnesota volunteer firefighters, all who are active volunteer 
203.30 	firefighters, one of whom is covered by the lump-sum retirement division and one of whom 
203.31 	is covered by the monthly benefit retirement division, appointed by the Minnesota State 
203.32 	Fire Chiefs Association;
204.1 	(5) one representative three representatives of Minnesota volunteer firefighters who is
204.2 	are covered by the lump-sum retirement division, appointed by the Minnesota State Fire 
204.3 	Departments Association; and
204.4 	(6) one representative of the Office of the State Auditor, designated by the state auditor.

204.5 	Sec. 8. Minnesota Statutes 2016, section 353G.08, subdivision 3, is amended to read:
204.6 		Subd. 3.Authorized account disbursements.  The assets of a lump-sum retirement 
204.7 	account or of a monthly benefit retirement account of the retirement fund may only be 
204.8 	disbursed for:
204.9 	(1) the administrative expenses of the retirement plan;
204.10 	(2) the investment expenses of the retirement fund;
204.11 	(3) the service pensions payable under section 353G.10, 353G.11, 353G.14, or 353G.15;
204.12 	(4) the survivor benefits payable under section 353G.12; and
204.13 	(5) the disability benefit coverage insurance premiums under section 353G.115; and
204.14 	(6) a transfer of assets under section 353G.17.

204.15 	Sec. 9. Minnesota Statutes 2016, section 353G.11, subdivision 1, is amended to read:
204.16 		Subdivision 1.Service pension levels; lump-sum retirement division. Except as 
204.17 	provided in subdivision 1a, the lump-sum retirement division of the retirement plan provides 
204.18 	the following levels of service pension amounts per full year of good time service credit to 
204.19 	be selected at the election of coverage:
204.20 	(1) a minimum service pension level of $500 per year;
204.21 	(2) a maximum service pension level of $7,500 per year equal to the largest amount 
204.22 	permitted under section 424A.02, subdivision 3, paragraph (d), as a maximum lump-sum 
204.23 	service pension amount payable for each year of service; and
204.24 	(3) 69 service pension levels between the minimum level and the maximum level in 
204.25 	$100 increments.

204.26 	Sec. 10. [353G.17] TRANSFER AUTHORIZED.
204.27 		Subdivision 1.Entity to initiate transfer. (a) An entity operating a fire department with 
204.28 	firefighters who are covered by the retirement plan may initiate the transfer of records, 
204.29 	assets, and liabilities related to the firefighters' lump-sum or monthly benefits under the 
205.1 	retirement plan to a relief association that, at the time of the transfer, will be associated with 
205.2 	the entity. The entity may be a municipality, an independent nonprofit firefighting 
205.3 	corporation, or a joint powers entity.
205.4 	(b) A transfer is initiated by filing with the executive director the following:
205.5 	(1) a notice of intent to initiate a transfer;
205.6 	(2) a copy of the resolutions of the entity approving the transfer of records, assets, and 
205.7 	liabilities from the retirement plan to a relief association; and
205.8 	(3) for each firefighter, the firefighter's name, address, telephone number, and e-mail 
205.9 	address, if any.
205.10 	(c) The notice shall inform the executive director of the following:
205.11 	(1) the transfer effective date, which shall comply with paragraph (d);
205.12 	(2) the name of the relief association and the municipality, independent nonprofit 
205.13 	firefighting corporation, or joint powers entity with which the relief association is associated; 
205.14 	and
205.15 	(3) a summary of the type and level of pension or retirement benefits, including any 
205.16 	ancillary benefits, provided by the relief association or, in the case of a new relief association, 
205.17 	to be provided, and related terms and conditions.
205.18 	(d) If the notice of intent to transfer is filed with the executive director before September 
205.19 	1, the transfer takes effect on the next January 1. If the notice of intent to transfer is filed 
205.20 	after August 31, the transfer takes effect on the January 1 following the one-year anniversary 
205.21 	of the filing of the notice.
205.22 		Subd. 2.Approval by the relief association. (a) Before a transfer of records, assets, 
205.23 	and liabilities from the retirement plan to a relief association may occur, the board of trustees 
205.24 	of the relief association shall adopt resolutions as follows:
205.25 	(1) approving and accepting the transfer of records, assets, and liabilities from the 
205.26 	retirement plan; and
205.27 	(2) amending the bylaws of the relief association as necessary to add the firefighters 
205.28 	whose benefits are being transferred from the retirement plan and to provide that each benefit 
205.29 	being transferred retains vesting, distribution, and other rights to which the firefighter, for 
205.30 	whom the benefit is being transferred, is entitled under the terms of the retirement plan to 
205.31 	the date of the transfer.
205.32 	The board of trustees shall file a copy of the resolutions with the executive director.
206.1 	(b) The board of trustees of the relief association shall file with the state auditor the 
206.2 	following:
206.3 	(1) a copy of the resolutions required under paragraph (a);
206.4 	(2) a copy of the bylaws of the relief association and any bylaw amendments;
206.5 	(3) a copy of the relief association's investment policy;
206.6 	(4) a statement that a board of trustees has been duly elected and each trustee's name, 
206.7 	address, telephone number, and e-mail address, if any;
206.8 	(5) a copy of the most recent annual financial, investment, and plan administration report 
206.9 	filed under section 69.051, unless the due date for the first report has not yet occurred; and
206.10 	(6) a copy of the documentation indicating that a special fund has been established with 
206.11 	a financial institution to receive a transfer of assets from the retirement plan.
206.12 	(c) Upon receipt of the information and documents required under paragraph (b), the 
206.13 	state auditor shall issue to the relief association and the executive director written 
206.14 	confirmation of receipt of all required information and documents.
206.15 		Subd. 3.Approval by the firefighters. (a) A transfer under subdivision 1 shall not occur 
206.16 	unless the active firefighters whose benefits are to be transferred from the retirement plan 
206.17 	to a relief association approve the transfer by a vote of the firefighters conducted by the 
206.18 	executive director.
206.19 	(b) The approval of the firefighters shall be determined by a vote of all active firefighters 
206.20 	whose benefits are to be transferred. An affirmative vote of a majority of the firefighters 
206.21 	voting shall constitute approval.
206.22 	(c) The executive director shall provide a voting ballot and the following to each active 
206.23 	firefighter:
206.24 	(1) a summary of the benefits currently provided to the firefighters under the retirement 
206.25 	plan;
206.26 	(2) a copy of the resolutions of the municipality approving the transfer;
206.27 	(3) a copy of the resolutions of the board of trustees approving the transfer;
206.28 	(4) a copy of the notice of intent to transfer required under subdivision 1;
206.29 	(5) a copy of the state auditor's confirmation required under subdivision 2, paragraph 
206.30 	(c); and
207.1 	(6) the instructions and time frame for voting. Firefighters shall be given no less than 
207.2 	30 days in which to vote.
207.3 	(d) The vote of any firefighter, including whether or not the firefighter voted, shall not 
207.4 	be disclosed to any officer or member of the staff of the municipality or to any officer, 
207.5 	trustee, or member of the staff of the relief association.
207.6 	(e) The executive director shall tally the votes and report the results to the relief 
207.7 	association and the municipality.
207.8 		Subd. 4.Transfer process. (a) Upon completion of the actions required under 
207.9 	subdivisions 1 to 3, the retirement plan shall transfer to the relief association as of the 
207.10 	effective date identified in the notice under subdivision 1, the records, assets, and liabilities 
207.11 	related to the former and current firefighters with benefits under the retirement plan, along 
207.12 	with any assets in excess of liabilities credited to the lump-sum account or the monthly 
207.13 	benefit retirement account attributable to the firefighters and the municipality.
207.14 	(b) The executive director:
207.15 	(1) shall transfer the assets in cash;
207.16 	(2) shall transfer any accounts receivable associated with the lump-sum account or 
207.17 	monthly benefit retirement account;
207.18 	(3) shall settle any accounts payable from the account before the transfer; and
207.19 	(4) may deduct from the assets to be transferred reasonable costs incurred by the 
207.20 	retirement plan to conduct the voting process and complete the transfer.
207.21 		Subd. 5.Relief association obligations and rights upon transfer from the retirement 
207.22 	plan. (a) Upon transfer of the assets of the lump-sum account or monthly benefit retirement 
207.23 	account, the pension liabilities attributable to the benefits for the former and current 
207.24 	firefighters shall become the obligation of the special fund of the relief association.
207.25 	(b) Upon the transfer of the assets of the lump-sum account or monthly benefit retirement 
207.26 	account, the board of trustees of the relief association has legal title to and management 
207.27 	responsibility for the transferred assets as trustees for persons having a beneficial interest 
207.28 	in those assets arising out of the benefit coverage provided by the account.
207.29 	(c) The relief association is the successor in interest with respect to all claims against 
207.30 	the retirement plan relating to the transferred lump-sum account or monthly benefit retirement 
207.31 	account, except for claims alleging any act or acts by the retirement plan or its fiduciaries 
208.1 	that were not done in good faith or that constituted a breach of fiduciary responsibility under 
208.2 	chapter 356A.
208.3 	(d) The value of each volunteer firefighter's benefit in the retirement plan on the day 
208.4 	before the asset transfer shall be no less than the value of the volunteer firefighter's benefit 
208.5 	on the day after the asset transfer. The relief association shall give credit, with respect to 
208.6 	each firefighter whose benefit is being transferred, for all past service, including service 
208.7 	credit with the retirement plan and with any predecessor relief association, to the extent 
208.8 	credit is given for such service in the records of the retirement plan for that firefighter.
208.9 	(e) Upon completion of the transfer of records, assets, and liabilities, the executive 
208.10 	director shall provide written notice to the state auditor, the commissioner of revenue, and 
208.11 	the secretary of state that the transfer is complete.
208.12 		Subd. 6.Failure to obtain approval, certification, or verification. If the municipality, 
208.13 	board of trustees, or firefighters fail to approve the transfer under subdivision 1, 2, or 3 or 
208.14 	the requirements of subdivision 2, paragraph (b), are not met, the transfer of records, assets, 
208.15 	and liabilities from the retirement plan to the relief association shall not occur.

208.16 	Sec. 11. Laws 1992, chapter 534, section 10, subdivision 3, is amended to read:
208.17 		Subd. 3.Powers. (a) The hospital district shall have all the powers necessary and 
208.18 	convenient to provide for the acquisition, betterment, operation, maintenance, and 
208.19 	administration for the hospital, including nursing home, other facilities for the residential 
208.20 	occupancy of ambulatory elderly citizens who do not require nursing home or general 
208.21 	hospital care and related programs, as the board of directors shall determine to be necessary 
208.22 	and expedient. The enumeration of specific powers herein does not restrict the power of the 
208.23 	board to take any lawful action which, in the reasonable exercise of its discretion, it deems 
208.24 	necessary or convenient for the furtherance of the purpose for which the district exists, 
208.25 	whether or not the power to take the action is implied from any of the powers expressly 
208.26 	granted. These powers shall include, but not be limited to, the power to:
208.27 	(1) employ management, administrative, nursing, and other personnel, legal counsel, 
208.28 	engineers, architects, accountants, and other qualified persons, who may be paid for their 
208.29 	services by monthly salaries, hourly wages, and pension benefits, or by fees as may be 
208.30 	agreed on;
208.31 	(2) cause reports, plans, studies, and recommendations to be prepared;
208.32 	(3) when acquiring real and personal property as authorized in subdivision 1, contract 
208.33 	for the acquisition by option, contract for deed, conditional sales contract, or otherwise;
209.1 	(4) construct, equip, and furnish necessary buildings and grounds and maintain the same;
209.2 	(5) adopt bylaws and rules and regulations to govern the operation and administration 
209.3 	of any and all hospital, nursing home, and other facilities under its control, and for the 
209.4 	admission of persons thereto;
209.5 	(6) impose and collect charges for all services and facilities provided and made available 
209.6 	by it;
209.7 	(7) borrow money and issue bonds as prescribed in sections 6 to 20;
209.8 	(8) procure insurance against liability of the district or its officers and employees, or 
209.9 	both, for torts committed within the scope of their official duties, whether governmental or 
209.10 	proprietary, or for errors and omissions, and against damage to or destruction of any of its 
209.11 	facilities, equipment or other property;
209.12 	(9) subject to subdivision 4, sell or lease any of its facilities or equipment as may be 
209.13 	expedient;
209.14 	(10) cause annual audits to be made of its accounts, books, vouchers, and funds by 
209.15 	competent public accountants; this provision shall be construed to be mandatory;
209.16 	(11) require a corporate surety bond from officers and employees of the district, and in 
209.17 	the amount the board shall determine, and authorize payment of the premiums therefor; or
209.18 	(12) provide loans to students as provided in Minnesota Statutes, section 447.331.
209.19 	(b) If the Swift county or Benson hospital is sold or leased to a private organization, the 
209.20 	successor employer shall provide hospital employees who were members of the public 
209.21 	employees retirement association immediately before the lease or sale a pension program 
209.22 	and benefits comparable to those provided by the public employees retirement association.

209.23 	Sec. 12. BROOK PARK; LOWERING SERVICE PENSION LEVEL.
 209.24 	(a) Notwithstanding any law to the contrary, the Public Employees Retirement Association 
209.25 	must lower the annual service pension level for the Brook Park lump-sum account benefits 
209.26 	payable to its volunteer firefighters under Minnesota Statutes, section 353G.11, subdivision 
209.27 	2, from $1,200 to $600, retroactively from January 1, 2016.
209.28 	(b) The city of Brook Park must annually review the service pension level to determine 
209.29 	if the level is appropriate, taking into account the city's need to recruit and retain volunteer 
209.30 	firefighters.

210.1 	Sec. 13. CERTAIN ST. PAUL LABORERS AND ASSOCIATED TRADES 
210.2 	PERSONNEL; COVERAGE EXCLUSION ELECTION.
 210.3 	(a) A laborer or an associated trades person who is employed by the city of St. Paul or 
210.4 	Independent School District No. 625, St. Paul, before June 1, 2018, and is designated as a 
210.5 	temporary employee under a collective bargaining agreement and who has pension coverage 
210.6 	by the Minnesota Laborers Pension Fund may elect to be excluded from pension coverage 
210.7 	by the general employees retirement plan. The exclusion election under this section must 
210.8 	be made in writing on a form prescribed by the executive director and must be filed with 
210.9 	the executive director. The exclusion election is irrevocable.
210.10 	(b) Authority to make the coverage exclusion under this section expires June 1, 2019.

210.11 	Sec. 14. EFFECTIVE DATE.
 210.12 	(a) Sections 2 to 11 and 12, paragraph (a), are effective June 30, 2018.
210.13 	(b) Sections 1 and 13 are effective May 30, 2018.
210.14 	(c) Section 12, paragraph (b), is effective the day after the governing body of the city 
210.15 	of Brook Park and its chief clerical officer timely complete their compliance with Minnesota 
210.16 	Statutes, section 645.021, subdivisions 2 and 3.

210.17 	ARTICLE 17
210.18 	GENERALLY APPLICABLE RETIREMENT CHANGES

210.19 	Section 1. Minnesota Statutes 2016, section 356.24, subdivision 1, is amended to read:
210.20 		Subdivision 1.Restriction; exceptions.  It is unlawful for a school district or other 
210.21 	governmental subdivision or state agency to levy taxes for or to contribute public funds to 
210.22 	a supplemental pension or deferred compensation plan that is established, maintained, and 
210.23 	operated in addition to a primary pension program for the benefit of the governmental 
210.24 	subdivision employees other than:
210.25 	(1) to a supplemental pension plan that was established, maintained, and operated before 
210.26 	May 6, 1971;
210.27 	(2) to a plan that provides solely for group health, hospital, disability, or death benefits;
210.28 	(3) to the individual retirement account plan established by chapter 354B;
210.29 	(4) to a plan that provides solely for severance pay under section 465.72 to a retiring or 
210.30 	terminating employee;
211.1 	(5) for employees other than personnel employed by the Board of Trustees of the 
211.2 	Minnesota State Colleges and Universities and covered under the Higher Education 
211.3 	Supplemental Retirement Plan under chapter 354C, but including city managers covered 
211.4 	by an alternative retirement arrangement under section 353.028, subdivision 3, paragraph 
211.5 	(a), or by the defined contribution plan of the Public Employees Retirement Association 
211.6 	under section 353.028, subdivision 3, paragraph (b), if the supplemental plan coverage is 
211.7 	provided for in a personnel policy of the public employer or in the collective bargaining 
211.8 	agreement between the public employer and the exclusive representative of public employees 
211.9 	in an appropriate unit or in the individual employment contract between a city and a city 
211.10 	manager, and if for each available investment all fees and historic rates of return for the 
211.11 	prior one-, three-, five-, and ten-year periods, or since inception, are disclosed in an easily 
211.12 	comprehended document not to exceed two pages, in an amount matching employee 
211.13 	contributions on a dollar for dollar basis, but not to exceed an employer contribution of 
211.14 	one-half of the available elective deferral permitted per year per employee, under the Internal 
211.15 	Revenue Code:
211.16 	(i) to the state of Minnesota deferred compensation plan under section 352.965;
211.17 	(ii) in payment of the applicable portion of the contribution made to any investment 
211.18 	eligible under section 403(b) of the Internal Revenue Code, if the employing unit has 
211.19 	complied with any applicable pension plan provisions of the Internal Revenue Code with 
211.20 	respect to the tax-sheltered annuity program during the preceding calendar year; or
211.21 	(iii) any other deferred compensation plan offered by the employer under section 457 
211.22 	of the Internal Revenue Code;
211.23 	(6) for personnel employed by the Board of Trustees of the Minnesota State Colleges 
211.24 	and Universities and not covered by clause (5), to the supplemental retirement plan under 
211.25 	chapter 354C, if the supplemental plan coverage is provided for in a personnel policy or in 
211.26 	the collective bargaining agreement of the public employer with the exclusive representative 
211.27 	of the covered employees in an appropriate unit, in an amount matching employee 
211.28 	contributions on a dollar for dollar basis, but not to exceed an employer contribution of 
211.29 	$2,700 a year for each employee;
211.30 	(7) to a supplemental plan or to a governmental trust to save for postretirement health 
211.31 	care expenses qualified for tax-preferred treatment under the Internal Revenue Code, if the 
211.32 	supplemental plan coverage is provided for in a personnel policy or in the collective 
211.33 	bargaining agreement of a public employer with the exclusive representative of the covered 
211.34 	employees in an appropriate unit;
212.1 	(8) to the laborers national industrial pension fund or to a laborers local pension fund 
212.2 	for the employees of a governmental subdivision who are covered by a collective bargaining 
212.3 	agreement that provides for coverage by that fund and that sets forth a fund contribution 
212.4 	rate, but not to exceed an employer contribution of $5,000 $7,000 per year per employee;
212.5 	(9) to the plumbers and pipefitters national pension fund or to a plumbers and pipefitters 
212.6 	local pension fund for the employees of a governmental subdivision who are covered by a 
212.7 	collective bargaining agreement that provides for coverage by that fund and that sets forth 
212.8 	a fund contribution rate, but not to exceed an employer contribution of $5,000 per year per 
212.9 	employee;
212.10 	(10) to the international union of operating engineers pension fund for the employees 
212.11 	of a governmental subdivision who are covered by a collective bargaining agreement that 
212.12 	provides for coverage by that fund and that sets forth a fund contribution rate, but not to 
212.13 	exceed an employer contribution of $5,000 per year per employee;
212.14 	(11) to a supplemental plan organized and operated under the federal Internal Revenue 
212.15 	Code, as amended, that is wholly and solely funded by the employee's accumulated sick 
212.16 	leave, accumulated vacation leave, and accumulated severance pay;
212.17 	(12) to the International Association of Machinists national pension fund for the 
212.18 	employees of a governmental subdivision who are covered by a collective bargaining 
212.19 	agreement that provides for coverage by that fund and that sets forth a fund contribution 
212.20 	rate, but not to exceed an employer contribution of $5,000 per year per employee;
212.21 	(13) for employees of United Hospital District, Blue Earth, to the state of Minnesota 
212.22 	deferred compensation program, if the employee makes a contribution, in an amount that 
212.23 	does not exceed the total percentage of covered salary under section 353.27, subdivisions 
212.24 	3 and 3a;
212.25 	(14) to the alternative retirement plans established by the Hennepin County Medical 
212.26 	Center under section 383B.914, subdivision 5; or
212.27 	(15) to the International Brotherhood of Teamsters Central States pension plan for 
212.28 	fixed-route bus drivers employed by the St. Cloud Metropolitan Transit Commission who 
212.29 	are members of the International Brotherhood of Teamsters Local 638 by virtue of that 
212.30 	employment.

212.31 	Sec. 2. [356.631] ADDITIONAL SOURCES OF FUNDING.
212.32 	Notwithstanding any other provision of law to the contrary, in addition to all sources of 
212.33 	funding described in Minnesota Statutes, section 356.63, any public retirement plan described 
213.1 	in Minnesota Statutes, section 356.63, paragraph (b), is authorized to accept, at its discretion, 
213.2 	for deposit in its fund the following:
213.3 	(1) gifts;
213.4 	(2) donations;
213.5 	(3) bequests; and
213.6 	(4) life insurance death benefits.

213.7 	Sec. 3.  REPEALER.
 213.8 	Minnesota Statutes 2016, sections 352.04, subdivision 11; and 353.34, subdivision 6,
213.9 	are repealed.

213.10 	Sec. 4. EFFECTIVE DATE.
 213.11 	Sections 1 to 3 are effective June 30, 2018.

213.12 	ARTICLE 18
213.13 	SMALL GROUP RETIREMENT CHANGES

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

213.23		employee
	birth date
	
213.24		A
	October 2, 1968
	
213.25		B
	June 12, 1965
	
213.26		C
	August 10, 1958
	
213.27		D
	April 29, 1963
	
213.28		E
	April 11, 1955
	
213.29		F
	August 13, 1966
	
213.30		G
	April 22, 1961
	
214.1		H
	December 31, 1958
	
214.2		I
	October 10, 1966
	
214.3		J
	February 4, 1961
	
214.4		K
	August 21, 1963
	
214.5		L
	January 23, 1960
	
214.6		M
	September 19, 1966
	
214.7		N
	November 3, 1961
	
214.8		O
	June 13, 1958
	
214.9		P
	June 23, 1954
	
214.10		Q
	October 20, 1956
	
214.11		R
	July 28, 1955
	
214.12		S
	May 6, 1960
	
214.13		T
	March 19, 1966
	
214.14		U
	August 19, 1966
	
214.15		V
	March 14, 1959
	
214.16 	(2) became an employee of the Minnesota Department of Transportation prior to July 
214.17 	1, 1989, in a position which was not covered by the general state employees retirement plan 
214.18 	of the Minnesota State Retirement System;
214.19 	(3) was eventually employed as a permanent employee after June 30, 1989, and covered 
214.20 	by the general state employees retirement plan of the Minnesota State Retirement System 
214.21 	on the dates as follows:

214.22		employee
	membership record date
	
214.23		A
	September 27, 1989
	
214.24		B
	September 27, 1989
	
214.25		C
	September 26, 1989
	
214.26		D
	September 27, 1989
	
214.27		E
	September 26, 1989
	
214.28		F
	September 13, 1989
	
214.29		G
	September 1, 1989
	
214.30		H
	September 27, 1989
	
214.31		I
	September 27, 1989
	
214.32		J
	September 13, 1989
	
214.33		K
	September 13, 1989
	
214.34		L
	September 26, 1989
	
214.35		M
	August 30, 1989
	
214.36		N
	September 26, 1989
	
214.37		O
	September 13, 1989
	
215.1		P
	September 27, 1989
	
215.2		Q
	September 27, 1989
	
215.3		R
	September 27, 1989
	
215.4		S
	September 13, 1989
	
215.5		T
	September 13, 1989
	
215.6		U
	September 27, 1989
	
215.7		V
	September 26, 1989
	
215.8 	(4) was sent annual statements by the Minnesota State Retirement System between July 
215.9 	1, 2005, and July 1, 2015, indicating eligibility for a retirement benefit under Minnesota 
215.10 	Statutes, section 352.116, subdivision 1; and
215.11 	(5) was sent notification from the Minnesota State Retirement System revising the start 
215.12 	date for general state employees retirement plan membership from a date before July 1, 
215.13 	1989, to a date after June 30, 1989, and indicating consequent inapplicability of Minnesota 
215.14 	Statutes, section 352.116, subdivision 1.
215.15 	(c) An eligible person may purchase allowable service credit in the general state 
215.16 	employees retirement plan of the Minnesota State Retirement System by paying an amount 
215.17 	equal to the employer contributions and employee contributions that would have been paid 
215.18 	from June 1, 1989, to the end of the month prior to the date the employee entered covered 
215.19 	service plus interest at the applicable annual rate or rates specified in Minnesota Statutes, 
215.20 	section 356.59, subdivision 2, compounded annually on the combined employer and 
215.21 	employee contribution amount from the date the contributions would have been paid to the 
215.22 	date the Minnesota State Retirement System receives payment for this service credit purchase. 
215.23 	The payment must be made in a lump sum.
215.24 	(d) An eligible person who purchases allowable service credit under paragraph (c) has 
215.25 	a June 1, 1989, start date for the purpose of allowable service credited by the general state 
215.26 	employees retirement plan of the Minnesota State Retirement System and is eligible for a 
215.27 	retirement annuity under Minnesota Statutes, section 352.116, subdivision 1.
215.28 	(e) The ongoing annuity benefit of an eligible person who is retired and who purchases 
215.29 	allowable service credit under paragraph (c) shall be adjusted consistent with paragraph (d). 
215.30 	The difference between the ongoing annuity benefit and the adjusted ongoing annuity benefit 
215.31 	for all benefit payments made before the adjustment shall be paid as a lump sum.
215.32 	(f) Authority to purchase prior uncredited service credit under this section expires one 
215.33 	year from the effective date of this section.

216.1 	Sec. 2. PERA-GENERAL; PURCHASE OF SERVICE CREDIT FOR ST. CLOUD 
216.2 	STATE UNIVERSITY EMPLOYEE.
 216.3 	(a) Notwithstanding any provision of law to the contrary, an eligible person described 
216.4 	in paragraph (b) is entitled to purchase from the general employees retirement plan of the 
216.5 	Public Employees Retirement Association allowable service credit under Minnesota Statutes, 
216.6 	section 353.01, subdivision 16, for the period of service described in paragraph (c).
216.7 	(b) An eligible person is a person who:
216.8 	(1) was born on September 1, 1960;
216.9 	(2) was an employee of St. Cloud State University on March 14, 2016;
216.10 	(3) was a member of the general employees retirement plan of the Public Employees 
216.11 	Retirement Association on March 14, 2016;
216.12 	(4) was employed by St. Cloud Technical College on April 1, 1993, and was a member 
216.13 	of the general employees retirement plan of the Public Employees Retirement Association; 
216.14 	and
216.15 	(5) changed employment within St. Cloud State University on February 22, 2006, and 
216.16 	was erroneously placed into the higher education individual retirement account plan from 
216.17 	February 22, 2006, until May 10, 2011, by the Minnesota State Colleges and Universities 
216.18 	system.
216.19 	(c) The period of uncredited service authorized for purchase is the period of February 
216.20 	22, 2006, until May 10, 2011, during which time the eligible person was erroneously placed 
216.21 	into and contributed to the higher education individual retirement account plan.
216.22 	(d) The eligible person's member contributions to the higher education individual 
216.23 	retirement account plan must be transferred to the Public Employees Retirement Association 
216.24 	with any earned investment returns on those contributions. The eligible person must pay 
216.25 	the member contributions that the eligible person would have made to the Public Employees 
216.26 	Retirement Association on the eligible person's compensation from the Minnesota State 
216.27 	Colleges and Universities system for the period of service described in paragraph (c) as if 
216.28 	the person had been covered by the Public Employees Retirement Association during the 
216.29 	period, plus annual compound interest on that amount at the applicable annual rate or rates 
216.30 	specified in Minnesota Statutes, section 356.59, subdivision 3, until the date on which 
216.31 	payment is made to the Public Employees Retirement Association, less the transferred 
216.32 	member contributions and investment earnings.
217.1 	(e) Upon transfer of the equivalent member contribution amount and any additional 
217.2 	payments under paragraph (d), the balance of the eligible person's higher education individual 
217.3 	retirement account plan account must be transferred to the Public Employees Retirement 
217.4 	Association within 60 days following the receipt of the eligible person's payment under 
217.5 	paragraph (d).
217.6 	(f) Upon the transfer of the amounts under paragraphs (d) and (e), the Minnesota State 
217.7 	Colleges and Universities system shall pay the prior service credit purchase payment amount 
217.8 	calculated under Minnesota Statutes, section 356.551, less any amounts received under 
217.9 	paragraphs (d) and (e), within 60 days following the receipt of the eligible person's payment 
217.10 	under paragraph (d).
217.11 	(g) Upon the transfers and payments under paragraph (f), the eligible person must be 
217.12 	credited by the Public Employees Retirement Association with allowable service credit for 
217.13 	Minnesota State Colleges and Universities System employment from February 22, 2006, 
217.14 	until May 10, 2011.
217.15 	(h) Authority to make a service credit purchase under this section expires one year from 
217.16 	the effective date of this section.

217.17 	Sec. 3. TRA COVERAGE ELECTION AND PERA REFUND REPAYMENT 
217.18 	AUTHORITY FOR CERTAIN MNSCU EMPLOYEE.
 217.19 	(a) Notwithstanding any provision of Minnesota Statutes, chapter 353 or 354B, to the 
217.20 	contrary, an eligible person described in paragraph (b) is eligible to become a coordinated 
217.21 	member of the Teachers Retirement Association and to purchase service and salary credit 
217.22 	in the Teachers Retirement Association coordinated plan retroactively from July 1, 2001, 
217.23 	upon repaying a member contribution refund taken from the general employees retirement 
217.24 	plan of the Public Employees Retirement Association under paragraph (c), upon making 
217.25 	an election under paragraph (e), and upon making all required payments under paragraphs 
217.26 	(f) and (g).
217.27 	(b) An eligible person is a person who:
217.28 	(1) was born April 4, 1956;
217.29 	(2) was employed by a governmental subdivision in 1995, with retirement coverage in 
217.30 	the general employees retirement plan of the Public Employees Retirement Association, 
217.31 	for which a refund of member contributions and interest was taken before 2001;
218.1 	(3) was employed by St. Cloud State University in the late 1990s, with retirement 
218.2 	coverage in the general state employees retirement plan of the Minnesota State Retirement 
218.3 	System;
218.4 	(4) was hired as an academic advisor by St. Cloud State University on July 1, 2001, with 
218.5 	retirement coverage in the higher education individual retirement account plan; and
218.6 	(5) was not informed of the option to elect Teachers Retirement Association coverage 
218.7 	in the coverage election authorized by Minnesota Statutes 2001, section 354B.21, so remained 
218.8 	in the higher education individual retirement account plan.
218.9 	(c) The refund repayment required by Minnesota Statutes, section 356.551, subdivision 
218.10 	1, paragraph (c), must be calculated under Minnesota Statutes, section 353.35, subdivision 
218.11 	1, paragraph (c).
218.12 	(d) Authority to repay a refund under this section expires one year from the effective 
218.13 	date of this section.
218.14 	(e) To be eligible for coverage by the Teachers Retirement Association, an eligible 
218.15 	person must submit a written application to the executive director of the Teachers Retirement 
218.16 	Association on a form provided by the Teachers Retirement Association. The application 
218.17 	must include all documentation of the applicability of this section and any other relevant 
218.18 	information that the executive director may require. Teachers Retirement Association plan 
218.19 	membership commences after the date of the retirement coverage election under this section 
218.20 	and past salary and service credit is granted for past Minnesota State Colleges and 
218.21 	Universities system employment from July 1, 2001, until the executive director receives 
218.22 	the written application specified in this paragraph and receipts of the payments specified in 
218.23 	paragraphs (c), (f), and (g). Coverage by the Teachers Retirement Association is in lieu of 
218.24 	coverage by the individual retirement account plan.
218.25 	(f) If the eligible person makes the retirement coverage election under paragraph (e), 
218.26 	the eligible person's member contributions to the higher education individual retirement 
218.27 	account plan must be transferred to the Teachers Retirement Association with any earned 
218.28 	investment returns on those contributions. If the transferred member contributions and 
218.29 	investment earnings are less than the calculated amount of the member contributions that 
218.30 	the eligible person would have made to the Teachers Retirement Association on the eligible 
218.31 	person's compensation from the Minnesota State Colleges and Universities system for the 
218.32 	period from July 1, 2001, to the date of the retirement coverage election if the person had 
218.33 	been covered by the Teachers Retirement Association during the period, plus annual 
218.34 	compound interest at the applicable rate or rates specified in Minnesota Statutes, section 
219.1 	356.59, subdivision 4, then the eligible person shall pay the balance of that calculated 
219.2 	member contribution obligation within 30 days of the retirement coverage election.
219.3 	(g) Upon the transfer of the equivalent member contribution amount and any additional 
219.4 	payment under paragraph (f), the balance of the eligible person's higher education individual 
219.5 	retirement account plan account must be transferred to the Teachers Retirement Association. 
219.6 	If the amounts under paragraph (f) and the individual retirement account plan balance under 
219.7 	this paragraph are less than the prior service credit purchase payment amount calculated 
219.8 	under Minnesota Statutes, section 356.551, the Minnesota State Colleges and Universities 
219.9 	system shall pay the difference within 60 days of the retirement election date.
219.10 	(h) The authority to make a retirement coverage election under this section expires one 
219.11 	year from the effective date of this section.

219.12 	Sec. 4. TRA COVERAGE FOR CERTAIN MESABI RANGE COMMUNITY AND 
219.13 	TECHNICAL COLLEGE FACULTY MEMBERS.
 219.14 	(a) Notwithstanding any provision of law to the contrary, an eligible person described 
219.15 	in paragraph (b) is authorized to become a coordinated member of the Teachers Retirement 
219.16 	Association and to purchase service and salary credit in the Teachers Retirement Association 
219.17 	coordinated plan retroactive from July 19, 2000, or September 15, 2000, whichever is 
219.18 	applicable, upon making an election under paragraph (c) and upon making all required 
219.19 	payments under paragraphs (d) and (e).
219.20 	(b) An eligible person is a person who:
219.21 	(1) either:
219.22 	(i) was born on September 25, 1964, and has been employed at Mesabi Range Community 
219.23 	and Technical College and a contributing member of the higher education individual 
219.24 	retirement account plan since July 19, 2000; or
219.25 	(ii) was born on October 15, 1963, and has been employed at Mesabi Range Community 
219.26 	and Technical College and a contributing member of the higher education individual 
219.27 	retirement account plan since September 15, 2000;
219.28 	(2) was classified in the unlimited full-time category on August 21, 2012;
219.29 	(3) became eligible for an election of Teachers Retirement Association coverage under 
219.30 	Laws 2009, chapter 169, article 6, section 1; and
219.31 	(4) was not offered an election of Teachers Retirement Association coverage by the 
219.32 	Minnesota State Colleges and Universities system.
220.1 	(c) To be eligible for coverage by the Teachers Retirement Association, an eligible 
220.2 	person must submit a written application to the executive director of the Teachers Retirement 
220.3 	Association on a form provided by the Teachers Retirement Association. The application 
220.4 	must include all documentation of the applicability of this section and any other relevant 
220.5 	information that the executive director may require. Teachers Retirement Association plan 
220.6 	membership commences after the date of the retirement coverage election under this section 
220.7 	and past salary and service credit is granted for past Minnesota State Colleges and 
220.8 	Universities system employment from July 19, 2000, or September 15, 2000, whichever is 
220.9 	applicable, until the executive director receives the written application specified in this 
220.10 	paragraph and receipts of the payments specified in paragraphs (d) and (e). Coverage by 
220.11 	the Teachers Retirement Association is in lieu of coverage by the individual retirement 
220.12 	account plan.
220.13 	(d) If the eligible person makes the retirement coverage election under paragraph (c), 
220.14 	the eligible person shall make a contribution to the Teachers Retirement Association equal 
220.15 	to the excess, if any, of the employee contributions that the eligible person would have made 
220.16 	if the Teachers Retirement Association had provided coverage from July 19, 2000, or 
220.17 	September 15, 2000, whichever is applicable, rather than the individual retirement account 
220.18 	plan. These additional contribution amounts shall include annual compound interest at the 
220.19 	applicable annual rate or rates specified in Minnesota Statutes, section 356.59, subdivision 
220.20 	4, computed from the date the contribution would have been made if deducted from salary 
220.21 	until paid. The total amount to be paid under this paragraph shall be determined by the 
220.22 	executive director of the Teachers Retirement Association and written notification of the 
220.23 	amount required under this paragraph must be transmitted to the eligible person.
220.24 	(e) If payment is made under paragraph (d), the value of the applicable eligible person's 
220.25 	higher education individual retirement account plan account shall be transferred to the 
220.26 	Teachers Retirement Association.
220.27 	(f) The Teachers Retirement Association shall determine the required purchase payment 
220.28 	amount calculated under Minnesota Statutes, section 356.551, imposed upon the Teachers 
220.29 	Retirement Association under this section due to the salary and service credit purchase.
220.30 	(g) From the total amount computed under paragraph (f), the executive director of the 
220.31 	Teachers Retirement Association shall subtract the amounts received under paragraphs (d) 
220.32 	and (e). The Minnesota State Colleges and Universities system must transmit the remaining 
220.33 	amount, if any, to the executive director of the Teachers Retirement Association within 60 
220.34 	days following the receipt of the payments under paragraphs (d) and (e).
221.1 	(h) The authority to make a retirement coverage election under this section expires one 
221.2 	year from the effective date of this section.

221.3 	Sec. 5. TEACHERS RETIREMENT ASSOCIATION COVERAGE ELECTION 
221.4 	AND MINNESOTA STATE RETIREMENT SYSTEM REFUND REPAYMENT 
221.5 	AUTHORITY FOR CERTAIN WINONA STATE UNIVERSITY EMPLOYEE.
 221.6 	(a) Notwithstanding any provision of Minnesota Statutes, chapter 352 or 354B, to the 
221.7 	contrary, an eligible person described in paragraph (b) is eligible to become a coordinated 
221.8 	member of the Teachers Retirement Association and to purchase service and salary credit 
221.9 	in the Teachers Retirement Association coordinated plan retroactively from January 1, 1995, 
221.10 	upon repaying a member contribution refund taken from the general employees retirement 
221.11 	plan of the Minnesota State Retirement System under paragraph (c), upon making an election 
221.12 	under paragraph (e), and upon making all required payments under paragraphs (f), (g), and 
221.13 	(h).
221.14 	(b) An eligible person is a person who:
221.15 	(1) was born November 11, 1957;
221.16 	(2) began state employment in 1981, with retirement coverage in the general employees 
221.17 	retirement plan of the Minnesota State Retirement System for which a refund of member 
221.18 	contributions and interest was taken;
221.19 	(3) was employed by Winona State University on September 11, 1989, with retirement 
221.20 	coverage in the higher education individual retirement account plan; and
221.21 	(4) was not informed of the option to elect Teachers Retirement Association coverage 
221.22 	in the coverage election authorized under Laws 1994, chapter 508, article 1, section 10, so 
221.23 	remained in the higher education individual retirement account plan.
221.24 	(c) The refund repayment required by Minnesota Statutes, section 356.551, subdivision 
221.25 	1, paragraph (c), must be calculated under Minnesota Statutes, section 352.23.
221.26 	(d) Authority to repay a refund under this section expires one year from the effective 
221.27 	date of this section.
221.28 	(e) To be eligible for coverage by the Teachers Retirement Association, an eligible 
221.29 	person must submit a written application to the executive director of the Teachers Retirement 
221.30 	Association on a form provided by the Teachers Retirement Association. The application 
221.31 	must include all relevant documentation and information that the executive director may 
221.32 	require. Teachers Retirement Association plan membership commences after the date of 
222.1 	the retirement coverage election under this section and past salary and service credit is 
222.2 	granted for past Minnesota State Colleges and Universities system employment from January 
222.3 	1, 1995, until the executive director receives the written application specified in this 
222.4 	paragraph and receipts of the payments specified in paragraphs (c), (f), (g), and (h). Coverage 
222.5 	by the Teachers Retirement Association is in lieu of coverage by the individual retirement 
222.6 	account plan.
222.7 	(f) If the eligible person makes the retirement coverage election under paragraph (e), 
222.8 	the eligible person's member contributions to the higher education individual retirement 
222.9 	account plan account from January 1, 1995, to the date of the retirement coverage election 
222.10 	must be transferred to the Teachers Retirement Association, with any earned investment 
222.11 	returns on those contributions. If the transferred member contributions and investment 
222.12 	earnings are less than the calculated amount of the member contributions that the eligible 
222.13 	person would have made to the Teachers Retirement Association on the eligible person's 
222.14 	compensation from the Minnesota State Colleges and Universities system for the period 
222.15 	from January 1, 1995, to the date of the retirement coverage election, if the person had been 
222.16 	covered by the Teachers Retirement Association during the period, plus annual compound 
222.17 	interest at the applicable annual rate or rates specified in Minnesota Statutes, section 356.59, 
222.18 	subdivision 4, then the eligible person shall pay the balance of that calculated member 
222.19 	contribution obligation within 30 days of the retirement coverage election.
222.20 	(g) Upon the transfer of the equivalent member contribution amount and any additional 
222.21 	payment under paragraph (f), the employer contributions made on behalf of the eligible 
222.22 	member to the higher education individual retirement account plan account from January 
222.23 	1, 1995, to the date of the retirement coverage election must be transferred to the Teachers 
222.24 	Retirement Association, with any earned investment returns on those contributions.
222.25 	(h) If the amounts under paragraphs (f) and (g) are less than the prior service credit 
222.26 	purchase payment amount under Minnesota Statutes, section 356.551, the Minnesota State 
222.27 	Colleges and Universities system shall pay the difference within 60 days following receipt 
222.28 	of the amounts transmitted under paragraphs (f) and (g).
222.29 	(i) The authority to make a retirement coverage election under this section expires one 
222.30 	year from the effective date of this section.

222.31 	Sec. 6. PERA COVERAGE ELECTION AND SERVICE CREDIT PURCHASE; 
222.32 	DULUTH TOWNSHIP CLERK.
 222.33 	(a) Notwithstanding any provision of Minnesota Statutes, chapter 353 or 353D, to the 
222.34 	contrary, an eligible person described in paragraph (b) is eligible to purchase from the 
223.1 	general employees retirement plan of the Public Employees Retirement Association allowable 
223.2 	service credit under Minnesota Statutes, section 353.01, subdivision 16, for the period of 
223.3 	service described in paragraph (c).
223.4 	(b) An eligible person is a person who:
223.5 	(1) was born on July 19, 1953;
223.6 	(2) became a member of the public employees defined contribution plan of the Public 
223.7 	Employees Retirement Association on January 7, 1997, as the elected clerk for Duluth 
223.8 	township;
223.9 	(3) should have become a member of the public employees general plan of the Public 
223.10 	Employees Retirement Association on April 12, 2001, when the elected clerk position 
223.11 	became an appointed position;
223.12 	(4) erroneously remained in the public employees defined contribution plan until February 
223.13 	2017; and
223.14 	(5) retroactively joined the public employees general plan to January 1, 2014, pursuant 
223.15 	to Minnesota Statutes, section 353.27, subdivision 12.
223.16 	(c) The period of uncredited service authorized for purchase is the period of April 12, 
223.17 	2001, until December 31, 2013.
223.18 	(d) Any member contributions made to the public employees defined contribution plan, 
223.19 	plus any earned investments returns on those contributions, remaining after the transfer 
223.20 	associated with the cost of omitted salary deductions pursuant to Minnesota Statutes, section 
223.21 	353.27, subdivision 12, may be transferred to the public employees general plan of the 
223.22 	Public Employees Retirement Association upon request from the eligible person. The transfer 
223.23 	must occur within 60 days of the request. Authority to request a transfer under this section 
223.24 	expires December 31, 2018.
223.25 	(e) Any employer contributions made to the public employees defined contribution plan, 
223.26 	plus any earned investment returns on those contributions, remaining after the transfer 
223.27 	associated with the cost of omitted salary deductions pursuant to Minnesota Statutes, section 
223.28 	353.27, subdivision 12, must be transferred to the public employees general plan of the 
223.29 	Public Employees Retirement Association at the same time as the transfer that occurs under 
223.30 	paragraph (d).
223.31 	(f) If the eligible person requests a transfer under paragraph (d), the eligible person must 
223.32 	pay the member contributions that the eligible person would have made to the Public 
223.33 	Employees Retirement Association on the eligible person's compensation from the Duluth 
224.1 	township for the period of service described in paragraph (c) as if the person had been 
224.2 	covered by the public employees general plan, plus annual compound interest on that amount 
224.3 	at the applicable annual rate or rates specified in Minnesota Statutes, section 356.59, 
224.4 	subdivision 3, until the date payment is made to the Public Employees Retirement 
224.5 	Association, less the transferred member contributions and investment earnings.
224.6 	(g) Upon the transfer of the amounts under paragraphs (d), (e), and (f), Duluth township 
224.7 	shall pay the prior service credit purchase payment amount calculated under Minnesota 
224.8 	Statutes, section 356.551, less any amounts received under paragraphs (d), (e), and (f), 
224.9 	within 60 days following the receipt of the eligible person's payment under paragraph (f).
224.10 	(h) Upon the transfer and payment under paragraph (g), the eligible person must be 
224.11 	credited by the Public Employees Retirement Association with allowable service credit for 
224.12 	Duluth township employment from April 12, 2001, until December 31, 2013.
224.13 	(i) Authority to make a service credit purchase under this section expires one year from 
224.14 	the effective date of this section.

224.15 	Sec. 7. TRA COVERAGE ELECTION AUTHORITY FOR CERTAIN MINNESOTA 
224.16 	STATE EMPLOYEE.
 224.17 	(a) Notwithstanding any provision of law to the contrary, an eligible person described 
224.18 	in paragraph (b) is authorized to become a coordinated member of the Teachers Retirement 
224.19 	Association and to purchase service and salary credit in the Teachers Retirement Association 
224.20 	coordinated plan retroactively from August 5, 2009, upon making an election under paragraph 
224.21 	(c) and upon making all required payments under paragraphs (d) and (e).
224.22 	(b) An eligible person is one who:
224.23 	(1) was born on June 3, 1966;
224.24 	(2) was employed as a state program administrator coordinator on December 2, 2002, 
224.25 	with Minnesota State Retirement System retirement plan coverage;
224.26 	(3) was employed as an administrator with the Minnesota State Personnel Plan for 
224.27 	Administrators on August 5, 2009, with retirement coverage in the higher education 
224.28 	individual retirement account plan; and
224.29 	(4) was not offered an election of Teachers Retirement Association coverage as authorized 
224.30 	by Minnesota Statutes, section 354B.21, so remained in the higher education individual 
224.31 	retirement account plan.
225.1 	(c) To be eligible for coverage by the Teachers Retirement Association, an eligible 
225.2 	person must submit a written application to the executive director of the Teachers Retirement 
225.3 	Association on a form provided by the Teachers Retirement Association. The application 
225.4 	must include all documentation of the applicability of this section and any other relevant 
225.5 	information that the executive director may require. Teachers Retirement Association plan 
225.6 	membership commences after the date of the retirement coverage election under this section 
225.7 	and past salary and service credit is granted for past Minnesota State system employment 
225.8 	from August 5, 2009, until the executive director receives the written application specified 
225.9 	in this paragraph and receipts of payments specified in paragraphs (d) and (e).
225.10 	(d) If the eligible person makes the retirement coverage election under paragraph (c), 
225.11 	the eligible person shall make a contribution to the Teachers Retirement Association equal 
225.12 	to the excess, if any, of the employee contributions that the eligible person would have made 
225.13 	if covered by the Teachers Retirement Association from August 5, 2009. These additional 
225.14 	contribution amounts shall include 8.5 percent annual compound interest computed from 
225.15 	the date the contribution would have been made if deducted from salary until paid. The total 
225.16 	amount to be paid under this paragraph shall be determined by the executive director of the 
225.17 	Teachers Retirement Association and written notification of the amount required under this 
225.18 	paragraph must be transmitted to the eligible person.
225.19 	(e) If payment is made under paragraph (d), the value of the applicable eligible person's 
225.20 	higher education individual retirement account plan account shall be transferred to the 
225.21 	Teachers Retirement Association.
225.22 	(f) The Teachers Retirement Association shall determine the required purchase payment 
225.23 	amount calculated under Minnesota Statutes, section 356.551, imposed upon the Teachers 
225.24 	Retirement Association under this section due to the salary and service credit purchase.
225.25 	(g) From the total amount computed under paragraph (f), the executive director of the 
225.26 	Teachers Retirement Association shall subtract the amounts received under paragraphs (d) 
225.27 	and (e). The Minnesota State system must transmit the remaining amount, if any, to the 
225.28 	executive director of the Teachers Retirement Association within 60 days following the 
225.29 	receipt of payments under paragraphs (d) and (e).
225.30 	(h) The authority to make a retirement coverage election under this section expires one 
225.31 	year from the effective date of this section.

225.32 	Sec. 8. EFFECTIVE DATE.
 225.33 	Sections 1 to 7 are effective June 30, 2018.

226.1 	ARTICLE 19
226.2 	TECHNICAL CORRECTIONS

226.3 	Section 1. Minnesota Statutes 2016, section 353.01, subdivision 16, is amended to read:
226.4 		Subd. 16.Allowable service; limits and computation. (a) "Allowable service" means:
226.5 	(1) service during years of actual membership in the course of which employee deductions 
226.6 	were withheld from salary and contributions were made at the applicable rates under section 
226.7 	353.27, 353.65, or 353E.03;
226.8 	(2) periods of service covered by payments in lieu of salary deductions under sections 
226.9 	353.27, subdivisions 12 and 12a, and 353.35;
226.10 	(3) service in years during which the public employee was not a member but for which 
226.11 	the member later elected, while a member, to obtain credit by making payments to the fund 
226.12 	as permitted by any law then in effect;
226.13 	(4) a period of authorized leave of absence during which the employee receives pay as 
226.14 	specified in subdivision 10, paragraph (a), clause (4) or (5), from which deductions for 
226.15 	employee contributions are made, deposited, and credited to the fund;
226.16 	(5) a period of authorized leave of absence without pay, or with pay that is not included 
226.17 	in the definition of salary under subdivision 10, paragraph (a), clause (4) or (5), for which 
226.18 	salary deductions are not authorized, and for which a member obtained service credit for 
226.19 	up to 12 months of the authorized leave period by payment under section 353.0161 or
226.20 	353.0162, to the fund made in place of salary deductions;
226.21 	(6) a periodic, repetitive leave that is offered to all employees of a governmental 
226.22 	subdivision. The leave program may not exceed 208 hours per annual normal work cycle 
226.23 	as certified to the association by the employer. A participating member obtains service credit 
226.24 	by making employee contributions in an amount or amounts based on the member's average 
226.25 	salary, excluding overtime pay, that would have been paid if the leave had not been taken. 
226.26 	The employer shall pay the employer and additional employer contributions on behalf of 
226.27 	the participating member. The employee and the employer are responsible to pay interest 
226.28 	on their respective shares at the rate of 8.5 percent until June 30, 2015, and eight percent 
226.29 	thereafter, compounded annually, from the end of the normal cycle until full payment is 
226.30 	made. An employer shall also make the employer and additional employer contributions, 
226.31 	plus 8.5 percent interest until June 30, 2015, and eight percent interest thereafter, compounded 
226.32 	annually, on behalf of an employee who makes employee contributions but terminates public 
226.33 	service. The employee contributions must be made within one year after the end of the 
227.1 	annual normal working cycle or within 30 days after termination of public service, whichever 
227.2 	is sooner. The executive director shall prescribe the manner and forms to be used by a 
227.3 	governmental subdivision in administering a periodic, repetitive leave. Upon payment, the 
227.4 	member must be granted allowable service credit for the purchased period;
227.5 	(7) an authorized temporary or seasonal layoff under subdivision 12, limited to three 
227.6 	months allowable service per authorized temporary or seasonal layoff in one calendar year. 
227.7 	An employee who has received the maximum service credit allowed for an authorized 
227.8 	temporary or seasonal layoff must return to public service and must obtain a minimum of 
227.9 	three months of allowable service subsequent to the layoff in order to receive allowable 
227.10 	service for a subsequent authorized temporary or seasonal layoff;
227.11 	(8) a period during which a member is absent from employment by a governmental 
227.12 	subdivision by reason of service in the uniformed services, as defined in United States Code, 
227.13 	title 38, section 4303(13), if the member returns to public service with the same governmental 
227.14 	subdivision upon discharge from service in the uniformed service within the time frames 
227.15 	required under United States Code, title 38, section 4312(e), provided that the member did 
227.16 	not separate from uniformed service with a dishonorable or bad conduct discharge or under 
227.17 	other than honorable conditions. The service must be credited if the member pays into the 
227.18 	fund equivalent employee contributions based upon the contribution rate or rates in effect 
227.19 	at the time that the uniformed service was performed multiplied by the full and fractional 
227.20 	years being purchased and applied to the annual salary rate. The annual salary rate is the 
227.21 	average annual salary during the purchase period that the member would have received if 
227.22 	the member had continued to be employed in covered employment rather than to provide 
227.23 	uniformed service, or, if the determination of that rate is not reasonably certain, the annual 
227.24 	salary rate is the member's average salary rate during the 12-month period of covered 
227.25 	employment rendered immediately preceding the period of the uniformed service. Payment 
227.26 	of the member equivalent contributions must be made during a period that begins with the 
227.27 	date on which the individual returns to public employment and that is three times the length 
227.28 	of the military leave period, or within five years of the date of discharge from the military 
227.29 	service, whichever is less. If the determined payment period is less than one year, the 
227.30 	contributions required under this clause to receive service credit may be made within one 
227.31 	year of the discharge date. Payment may not be accepted following 30 days after termination 
227.32 	of public service under subdivision 11a. If the member equivalent contributions provided 
227.33 	for in this clause are not paid in full, the member's allowable service credit must be prorated 
227.34 	by multiplying the full and fractional number of years of uniformed service eligible for 
227.35 	purchase by the ratio obtained by dividing the total member contributions received by the 
228.1 	total member contributions otherwise required under this clause. The equivalent employer 
228.2 	contribution, and, if applicable, the equivalent additional employer contribution must be 
228.3 	paid by the governmental subdivision employing the member if the member makes the 
228.4 	equivalent employee contributions. The employer payments must be made from funds 
228.5 	available to the employing unit, using the employer and additional employer contribution 
228.6 	rate or rates in effect at the time that the uniformed service was performed, applied to the 
228.7 	same annual salary rate or rates used to compute the equivalent member contribution. The 
228.8 	governmental subdivision involved may appropriate money for those payments. The amount 
228.9 	of service credit obtainable under this section may not exceed five years unless a longer 
228.10 	purchase period is required under United States Code, title 38, section 4312. The employing 
228.11 	unit shall pay interest on all equivalent member and employer contribution amounts payable 
228.12 	under this clause. Interest must be computed at the rate of 8.5 percent until June 30, 2015, 
228.13 	and eight percent thereafter, compounded annually, from the end of each fiscal year of the 
228.14 	leave or the break in service to the end of the month in which the payment is received. Upon 
228.15 	payment, the employee must be granted allowable service credit for the purchased period; 
228.16 	or
228.17 	(9) a period specified under section 353.0162.
228.18 	(b) No member may receive more than 12 months of allowable service credit in a year 
228.19 	either for vesting purposes or for benefit calculation purposes.
228.20 	(c) For an active member who was an active member of the former Minneapolis 
228.21 	Firefighters Relief Association on December 29, 2011, "allowable service" is the period of 
228.22 	service credited by the Minneapolis Firefighters Relief Association as reflected in the 
228.23 	transferred records of the association up to December 30, 2011, and the period of service 
228.24 	credited under paragraph (a), clause (1), after December 30, 2011. For an active member 
228.25 	who was an active member of the former Minneapolis Police Relief Association on December 
228.26 	29, 2011, "allowable service" is the period of service credited by the Minneapolis Police 
228.27 	Relief Association as reflected in the transferred records of the association up to December 
228.28 	30, 2011, and the period of service credited under paragraph (a), clause (1), after December 
228.29 	30, 2011.

228.30 	Sec. 2. Minnesota Statutes 2016, section 353.012, is amended to read:
228.31 	353.012 UNIVERSITY OF MINNESOTA EMPLOYEES; FURLOUGH SERVICE 
228.32 	AND SALARY CREDIT.
228.33 	A furloughed employee of the University of Minnesota who is a member of the public 
228.34 	employees police and fire plan may obtain allowable service and salary credit for the furlough 
229.1 	period. The allowable service and salary credit authorization is a leave of absence 
229.2 	authorization for purposes of section 353.0161 and the purchase payment procedure of 
229.3 	section 353.0161, subdivision 2, applies 353.0162.

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

229.12 	Sec. 4. Minnesota Statutes 2016, section 354A.011, subdivision 29, is amended to read:
229.13 		Subd. 29.Vesting; vested. (a) "Vesting" or "vested" means having entitlement to a 
229.14 	nonforfeitable annuity or benefit from athe St. Paul Teachers Retirement Fund Association 
229.15 	coordinated member program administered by a teachers retirement fund association by 
229.16 	having credit for sufficient allowable service under paragraph (b) or (c), whichever applies
229.17 	when the teacher has accrued credit for at least three years of allowable service.
229.18 	(b) For purposes of qualifying for an annuity or a benefit as a coordinated plan member 
229.19 	of the St. Paul Teachers Retirement Fund Association, the teacher is vested when the teacher 
229.20 	has accrued credit for at least three years of service.
229.21 	(c) For purposes of qualifying for an annuity or a benefit as a coordinated plan member 
229.22 	of the Duluth Teachers Retirement Fund Association:
229.23 	(1) a teacher who first became a member of the plan before July 1, 2010, is vested when 
229.24 	the teacher has accrued at least three years of service; and
229.25 	(2) a teacher who first became a member of the plan after June 30, 2010, is vested when 
229.26 	the teacher has accrued at least five years of service.

229.27 	Sec. 5. Minnesota Statutes 2016, section 354A.095, is amended to read:
229.28 	354A.095 PARENTAL AND MATERNITY LEAVE.
229.29 	Basic or coordinated members of the St. Paul Teachers Retirement Fund Association 
229.30 	and new coordinated members of the Duluth Teachers Retirement Fund Association, who 
229.31 	are granted parental or maternity leave of absence by the employing authority, are entitled 
230.1 	to obtain service credit not to exceed one year for the period of leave upon payment to the 
230.2 	applicable fund by the end of the fiscal year following the fiscal year in which the leave of 
230.3 	absence terminated. The amount of the payment must include the total required employee 
230.4 	and employer contributions for the period of leave prescribed in section 354A.12. Payment 
230.5 	must be based on the member's average monthly salary rate upon return to teaching service, 
230.6 	and is payable without interest. Payment must be accompanied by a certified or otherwise 
230.7 	adequate copy of the resolution or action of the employing authority granting or approving 
230.8 	the leave.

230.9 	Sec. 6. Minnesota Statutes 2016, section 354A.31, subdivision 3, is amended to read:
230.10 		Subd. 3.Resumption of teaching after commencement of a retirement annuity. (a) 
230.11 	Any person who retired and is receiving a coordinated program retirement annuity under 
230.12 	the provisions of sections 354A.31 to 354A.41 or any person receiving a basic program 
230.13 	retirement annuity under the governing sections in the articles of incorporation or bylaws 
230.14 	and who has resumed teaching service for the school district in which the teachers retirement 
230.15 	fund association exists is entitled to continue to receive retirement annuity payments, except 
230.16 	that all or a portion of the annuity payments must be deferred during the calendar year 
230.17 	immediately following the calendar year in which the person's salary from the teaching 
230.18 	service is in an amount greater than $46,000. The amount of the annuity deferral is one-third 
230.19 	the salary amount in excess of $46,000 and must be deducted from the annuity payable for 
230.20 	the calendar year immediately following the calendar year in which the excess amount was 
230.21 	earned.
230.22 	(b) If the person is retired for only a fractional part of the calendar year during the initial 
230.23 	year of retirement, the maximum reemployment salary exempt from triggering a deferral 
230.24 	as specified in this subdivision must be prorated for that calendar year.
230.25 	(c) After a person has reached the Social Security normal retirement age, no deferral 
230.26 	requirement is applicable regardless of the amount of any compensation received for teaching 
230.27 	service for the school district in which the teachers retirement fund association exists.
230.28 	(d) The amount of the retirement annuity deferral must be handled or disposed of as 
230.29 	provided in section 356.47.
230.30 	(e) Notwithstanding other paragraphs of this subdivision, for any retired Duluth Teachers 
230.31 	Retirement Fund Association member whose effective date of retirement is after June 30, 
230.32 	2013, amounts specified as deferred under this subdivision must instead be forfeited to the 
230.33 	Duluth Teachers Retirement Fund Association fund.
231.1 	(f)(e) Notwithstanding other paragraphs of this subdivision, for any retired St. Paul 
231.2 	Teachers Retirement Fund Association basic or coordinated program member whose effective 
231.3 	date of retirement is after June 30, 2013, amounts specified as deferred under this subdivision 
231.4 	must instead be forfeited to the St. Paul Teachers Retirement Fund Association fund.
231.5 	(g)(f) For the purpose of this subdivision, salary from teaching service includes: (i) all 
231.6 	income for services performed as a consultant or independent contractor; or income resulting 
231.7 	from working with the school district in any capacity; and (ii) the greater of either the income 
231.8 	received or an amount based on the rate paid with respect to an administrative position, 
231.9 	consultant, or independent contractor in the school district in which the teachers retirement 
231.10 	fund association exists and at the same level as the position occupied by the person who 
231.11 	resumes teaching service.
231.12 	(h)(g) On or before February 15 of each year, each applicable employing unit shall 
231.13 	report to the teachers retirement fund association the amount of postretirement salary as 
231.14 	defined in this subdivision, earned as a teacher, consultant, or independent contractor during 
231.15 	the previous calendar year by each retiree of the teachers retirement fund association for 
231.16 	teaching service performed after retirement. The report must be in a format approved by 
231.17 	the executive secretary or director.

231.18 	Sec. 7. Minnesota Statutes 2016, section 354A.35, subdivision 2, is amended to read:
231.19 		Subd. 2.Death while eligible to retire; surviving spouse optional annuity. (a) The 
231.20 	surviving spouse of a vested coordinated member who dies prior to retirement may elect to 
231.21 	receive, instead of a refund with interest under subdivision 1, an annuity equal to the 100 
231.22 	percent joint and survivor annuity the member could have qualified for had the member 
231.23 	terminated service on the date of death. The surviving spouse eligible for a surviving spouse 
231.24 	benefit under this paragraph may apply for the annuity at any time after the date on which 
231.25 	the deceased employee would have attained the required age for retirement based on the 
231.26 	employee's allowable service. A surviving spouse eligible for surviving spouse benefits 
231.27 	under paragraph (b) or (c) may apply for an annuity at any time after the member's death. 
231.28 	The member's surviving spouse shall be paid a joint and survivor annuity under section 
231.29 	354A.32 and computed under section 354A.31.
231.30 	(b) If the member was under age 55 and has credit for at least 30 years of allowable 
231.31 	service on the date of death, the surviving spouse may elect to receive a 100 percent joint 
231.32 	and survivor annuity based on the age of the member and surviving spouse on the date of 
231.33 	death. The annuity is payable using the full early retirement reduction under section 354A.31, 
232.1 	subdivision 6, paragraph (a), to age 55 and one-half of the early retirement reduction from 
232.2 	age 55 to the age payment begins.
232.3 	(c) If a vested member of the Duluth Teachers Retirement Fund Association was under 
232.4 	age 55 on the date of death but did not yet qualify for retirement, the surviving spouse may 
232.5 	elect to receive the 100 percent joint and survivor annuity based on the age of the member 
232.6 	and the survivor at the time of death. The annuity is payable using the full early retirement 
232.7 	reduction under section 354A.31, subdivision 6 or 7, to age 55 and one-half of the early 
232.8 	retirement reduction from age 55 to the date payment begins.
232.9 	(d)(c) If a vested member of the St. Paul Teachers Retirement Fund Association was 
232.10 	under age 55 on the date of death but did not yet qualify for retirement, the surviving spouse 
232.11 	may elect to receive the 100 percent joint and survivor annuity based on the age of the 
232.12 	member and the survivor at the time of death. The annuity is payable using the full early 
232.13 	retirement reduction under section 354A.31, subdivision 6 or 7, to age 55 and one-half of 
232.14 	the actuarial equivalent reduction from age 55 to the date payment begins. The actuarial 
232.15 	equivalent reduction is calculated so that the reduced annuity is the actuarial equivalent of 
232.16 	the annuity that would be payable to the member if the member deferred receipt of the 
232.17 	annuity and the annuity amount were augmented at an annual rate of 2.5 percent compounded 
232.18 	annually from the day the annuity begins to accrue until the normal retirement age.
232.19 	(e)(d) Sections 354A.37, subdivision 2, and 354A.39 apply to a deferred annuity or 
232.20 	surviving spouse benefit payable under this section. The benefits are payable for the life of 
232.21 	the surviving spouse, or upon expiration of the term certain benefit payment under subdivision 
232.22 	2b.

232.23 	Sec. 8. Minnesota Statutes 2016, section 356.47, subdivision 1, is amended to read:
232.24 		Subdivision 1.Application. (a) This section applies to the balance of annual retirement 
232.25 	annuities on the amount of retirement annuity reductions after reemployed annuitant earnings 
232.26 	limitations for retirement plans governed by section 352.115, subdivision 10; 353.37; or 
232.27 	354.44, subdivision 5.
232.28 	(b) This section also applies to the balance of annual retirement annuities on the amount 
232.29 	of retirement annuity reductions under section 354A.31, subdivision 3, for members of the 
232.30 	Duluth Teachers Retirement Fund Association whose effective date of retirement is before 
232.31 	July 1, 2013.
232.32 	(c)(b) This section also applies to the balance of annual retirement annuities on the 
232.33 	amount of retirement annuity reductions under section 354A.31, subdivision 3, for members 
233.1 	of the St. Paul Teachers Retirement Fund Association whose effective date of retirement is 
233.2 	before July 1, 2013.

233.3 	Sec. 9.  REPEALER.
 233.4 	Minnesota Statutes 2016, section 354A.12, subdivision 2c, is repealed.

233.5 	Sec. 10. EFFECTIVE DATE.
 233.6 	Sections 1 to 9 are effective June 30, 2018.

233.7 	ARTICLE 20
233.8 	E-12 EDUCATION FINANCE

233.9 	Section 1. Minnesota Statutes 2016, section 126C.10, subdivision 37, is amended to read:
233.10 		Subd. 37.Pension adjustment revenue. (a) A school district's pension adjustment 
233.11 	revenue equals the sum of:
233.12 	(1) the greater of zero or the product of:
233.13 	(1) (i) the difference between the district's adjustment under Minnesota Statutes 2012, 
233.14 	section 127A.50, subdivision 1, for fiscal year 2014 per adjusted pupil unit and the state 
233.15 	average adjustment under Minnesota Statutes 2012, section 127A.50, subdivision 1, for 
233.16 	fiscal year 2014 per adjusted pupil unit; and
233.17 	(2) (ii) the district's adjusted pupil units for the fiscal year.; and
233.18 	(2) the product of the salaries paid to district employees who were members of the 
233.19 	Teachers Retirement Association and the St. Paul Teachers' Retirement Fund Association 
233.20 	for the prior fiscal year and the district's pension adjustment rate for the fiscal year. The 
233.21 	pension adjustment rate for Independent School District No. 625, St. Paul, equals 0.84 
233.22 	percent for fiscal year 2019, 1.67 percent for fiscal year 2020, 1.88 percent for fiscal year 
233.23 	2021, 2.09 percent for fiscal year 2022, 2.3 percent for fiscal year 2023, and 2.5 percent for 
233.24 	fiscal year 2024 and later. The pension adjustment rate for all other districts equals 0.21 
233.25 	percent for fiscal year 2019, 0.42 percent for fiscal year 2020, 0.63 percent for fiscal year 
233.26 	2021, 0.84 percent for fiscal year 2022, 1.05 percent for fiscal year 2023, and 1.25 percent 
233.27 	for fiscal year 2024 and later.
233.28 	(b) For fiscal year 2025 and later, the state total pension adjustment revenue under 
233.29 	paragraph (a), clause (2), must not exceed the amount calculated under paragraph (a), clause 
234.1 	(2), for fiscal year 2024. The commissioner must prorate the pension adjustment revenue 
234.2 	under paragraph (a), clause (2), so as not to exceed the maximum.
234.3 	(c) Notwithstanding section 123A.26, subdivision 1, a cooperative unit, as defined in 
234.4 	section 123A.24, subdivision 2, qualifies for pension adjustment revenue under paragraph 
234.5 	(a), clause (2), as if it was a district, and the aid generated by the cooperative unit shall be 
234.6 	paid to the cooperative unit.

234.7 	EFFECTIVE DATE. This section is effective for revenue in fiscal year 2019 and later.

234.8 	ARTICLE 21
234.9 	APPROPRIATIONS

234.10 	Section 1. APPROPRIATIONS; GENERAL FUND PENSION CONTRIBUTION 
234.11 	INCREASES.
 234.12 	(a) $7,142,000 in fiscal year 2019 is appropriated from the general fund to the entities 
234.13 	specified in paragraph (b) to offset employer pension contribution increases required under 
234.14 	this act of executive branch agencies, boards, commissions, and constitutional offices and 
234.15 	the judicial branch. These appropriations are for increases in employer contributions to the 
234.16 	Minnesota State Retirement System general employees, correctional employees, state patrol, 
234.17 	and unclassified retirement plans. The base for fiscal year 2020 is $14,071,000, the base 
234.18 	for fiscal year 2021 is $18,007,000, and the base for fiscal year 2022 and later is $21,943,000.
234.19 	(b) Except as provided in paragraph (c), the commissioner of management and budget 
234.20 	must determine an allocation of the amount appropriated in paragraph (a) for each executive 
234.21 	branch state agency, board, commission, and constitutional office and the judicial branch. 
234.22 	Each allocation is directly appropriated to each of these entities as specified by the 
234.23 	commissioner. The commissioner of management and budget must report the amounts 
234.24 	appropriated under this section to the chairs and ranking minority members of the house of 
234.25 	representatives Ways and Means Committee and the senate Finance Committee by August 
234.26 	15, 2018.
234.27 	(c) This appropriation may not be used to offset contribution increases to the University 
234.28 	of Minnesota, Minnesota State Colleges and Universities, the Metropolitan Council, or the 
234.29 	Minnesota Historical Society.

235.1 	Sec. 2. APPROPRIATIONS; NONGENERAL FUND PENSION CONTRIBUTION 
235.2 	INCREASES.
 235.3 	(a) The amounts necessary to pay increased nongeneral fund employer contribution 
235.4 	increases in this act in fiscal year 2019 are appropriated from any nongeneral fund that is 
235.5 	specified by the commissioner of management and budget under paragraph (b). These 
235.6 	appropriations shall offset employer pension contribution increases required under this act 
235.7 	of executive branch state agencies, boards, and commissions and the judicial branch. These 
235.8 	appropriations are for increases in employer contributions to the Minnesota State Retirement 
235.9 	System general employees, correctional employees, state patrol, and unclassified retirement 
235.10 	plans.
235.11 	(b) The commissioner of management and budget must determine the appropriate fund 
235.12 	and amount required under paragraph (a) for each executive branch state agency, board, 
235.13 	and commission; and the judicial branch for each fiscal year. The amounts are added to the 
235.14 	base, as defined in Minnesota Statutes, section 16A.11, subdivision 3, paragraph (b), of 
235.15 	each executive branch state agency, board, and commission, and the judicial branch. The 
235.16 	base of each executive branch state agency, board, and commission and the judiciary is 
235.17 	increased in each fiscal year until fiscal year 2023 to reflect the percentage increase in 
235.18 	employer contributions under this act. The commissioner of management and budget must 
235.19 	report the amounts appropriated under this section to the chairs and ranking minority 
235.20 	members of the house of representatives Ways and Means Committee and the senate Finance 
235.21 	Committee by August 15, 2018.

235.22 	Sec. 3. APPROPRIATIONS; TEACHERS RETIREMENT ASSOCIATION.
 235.23 	(a) $20,000 in fiscal year 2019 is appropriated from the general fund to the Department 
235.24 	of Education for increased employer pension contributions to the Teachers Retirement 
235.25 	Association. The base for fiscal year 2020 is $40,000, the base for fiscal year 2021 is $60,000, 
235.26 	the base for fiscal year 2022 is $80,000, the base for fiscal year 2023 is $100,000, and the 
235.27 	base for fiscal year 2024 and later is $118,000.
235.28 	(b) $7,000 in fiscal year 2019 is appropriated from the general fund to the Minnesota 
235.29 	State Academies for increased employer pension contributions to the Teachers Retirement 
235.30 	Association. The base for fiscal year 2020 is $14,000, the base for fiscal year 2021 is $20,000, 
235.31 	the base for fiscal year 2022 is $27,000, the base for fiscal year 2023 is $34,000, and the 
235.32 	base for fiscal year 2024 and later is $40,000.
235.33 	(c) $6,000 in fiscal year 2019 is appropriated from the general fund to the Perpich Center 
235.34 	for the Arts for increased employer pension contributions to the Teachers Retirement 
236.1 	Association. The base for fiscal year 2020 is $11,000, the base for fiscal year 2021 is $17,000, 
236.2 	the base for fiscal year 2022 is $22,000, the base for fiscal year 2023 is $28,000, and the 
236.3 	base for fiscal year 2024 and later is $33,000.

236.4 	Sec. 4. EDUCATION APPROPRIATIONS.
 236.5 		Subdivision 1.Department of Education. The sums indicated are appropriated from 
236.6 	the general fund to the Department of Education for the fiscal years designated. These sums 
236.7 	are in addition to appropriations made for the same purpose in any other law.
236.8 		Subd. 2.General education aid. For general education aid under Minnesota Statutes, 
236.9 	section 126C.13, subdivision 4:

236.10		$
	10,863,000
	.....
	2019
	
236.11 	The 2019 appropriation includes $0 for 2018 and $10,863,000 for 2019.

236.12 	Sec. 5. EFFECTIVE DATE.
 236.13 	Sections 1 to 4 are effective June 30, 2018.

APPENDIX 

Repealed Minnesota Statutes: S2620-2 

No active language found for: 3A.12 

352.04 STATE EMPLOYEES RETIREMENT FUND, CONTRIBUTIONS BY EMPLOYEE AND EMPLOYER.
No active language found for: 352.04.11 

No active language found for: 352.045 

No active language found for: 352.72 

No active language found for: 352B.30 

No active language found for: 353.0161 

353.27 GENERAL EMPLOYEES RETIREMENT FUND.
No active language found for: 353.27.3b 

353.34 RIGHTS UPON TERMINATION OF MEMBERSHIP.
No active language found for: 353.34.6 

No active language found for: 353.71 

354.42 CONTRIBUTIONS BY EMPLOYER AND EMPLOYEE.
No active language found for: 354.42.4a 

No active language found for: 354.42.4b 

No active language found for: 354.42.4c 

No active language found for: 354.42.4d 

No active language found for: 354.60 

354A.12 CONTRIBUTIONS BY EMPLOYEE AND EMPLOYER.
No active language found for: 354A.12.2c 

354A.29 ST. PAUL TEACHERS RETIREMENT FUND ASSOCIATION POSTRETIREMENT ADJUSTMENT.
No active language found for: 354A.29.8 

No active language found for: 354A.29.9 

No active language found for: 354A.39 

356.611 LIMITATION ON PUBLIC EMPLOYEE SALARIES FOR PENSION PURPOSES.
No active language found for: 356.611.3 

No active language found for: 356.611.3a 

No active language found for: 356.611.4 

No active language found for: 356.611.5 

356.96 PENSION PLAN APPEAL PROCEDURES.
No active language found for: 356.96.14 

No active language found for: 356.96.15 

424A.02 DEFINED BENEFIT RELIEF ASSOCIATIONS; SERVICE PENSIONS.
No active language found for: 424A.02.13 

Repealed Minnesota Session Laws: S2620-2 

Laws 2008, chapter 349, article 8, section 4 by Laws 2018, chapter 211, article 8, section 10
Sec. 4. REPEALER. (a) Minnesota Statutes 2006, section 354A.12, subdivision 3a, is repealed effective the first day of the fiscal year next following the fiscal year in which neither the Teachers Retirement Association nor the St. Paul Teachers Retirement Fund Association has an unfunded actuarial accrued liability as determined in the actuarial valuation prepared under Minnesota Statutes, section 356.215, by the actuary retained under Minnesota Statutes, section 356.214.(b) Minnesota Statutes 2007 Supplement, section 354A.12, subdivisions 3b and 3c, are repealed effective the first day of the fiscal year next following the fiscal year in which neither the Teachers Retirement Association nor the St. Paul Teachers Retirement Fund Association has an unfunded actuarial accrued liability as determined in the actuarial valuation prepared under Minnesota Statutes, section 356.215, by the actuary retained under Minnesota Statutes, section 356.214.